american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 32 www.americanjournal.org application of the theory and practice of marketing in the modern economy rakhmonov djobir amonovich foreign enterprise epsilon ltd. development company, uzbekistan tashkent rahmanovdjabir@gmail.com, +998973145888 a b s t r a c t k e y w o r d s the issues of introducing innovations in the modern economy seem to be relevant, since the development of various sectors of the entire sphere of business life contributes to the implementation of business strategies that ensure the efficiency of the activities of modern corporations. the role of marketing in the modern economy has developed on the basis of its role and essential content, realized by business theorists and practitioners. currently, there are also constant corrections and changes in marketing activities in economics. this article is the connection theory in the regional economy with marketing positions. marketing, competition, marketing communications, evolution. materials and methods currently, there is no consensus on the definition of the effectiveness of marketing implementation. for a more effective impact of communication on consumer choice, business practices began to use a combination of various information messages, and the conditions for their use aimed at the consumer. since the union of two or more combinations of something is called integration (from lat. integracio ), then such combined information messages are called integrated. discussion theorists of a certain period defined the domestic economy as a market management system [1, 2, 3]. such an author as is krulis-randa defined marketing as a market concept of economic management [4]. a similar point of view is shared by vargo s. and lash r [5]. o. tretiak considers marketing as a regulatory mechanism that serves to balance production and consumption [6].f. kotler defines marketing as "...a type of human activity aimed at satisfying needs and requirements through exchange"[7]. theories and practices of marketing largely form consumption stereotypes, predetermining the development trends of various industries. the american marketing association defines it as follows: “marketing is the process of planning and implementing the idea, pricing, promotion and implementation of ideas, goods and services through exchange that satisfies the goals of individuals and organizations” [8]. mailto:rahmanovdjabir@gmail.com american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 33 www.americanjournal.org the introduction of innovations in the communication component of marketing shows the use of the achievements of science and technology to enhance the advertising impact. impacts on consumer consciousness have certainly been noted by other authors, albeit in a somewhat different context. this phenomenon was consistently noted and developed in the works of s. levy [13] in the wake of the development of the product brand image towards global integrated marketing communications that affect the consumer everywhere. an integral part of the modern economy, due to certain limitations, is the fusion of communication marketing with relationship marketing. the latter (relationship marketing) is currently the main option for the existence of marketing in the markets of goods and services in postindustry countries . obviously, all of them should take into account in their planned activities the development of the unique characteristics of the region and their rational use. but since in a market economy the opportunities on the ground of subjects are limited, the main task is to systematically inform and stimulate the activities of regional business structures [6]. conclusions the independent search for new opportunities for many manufacturers turns into a random process, since neither the knowledge nor the means are enough for targeted marketing work. references 1. abramashvili g.g. problems of international marketing. m.: progress. 1984. 2. kapustina n.e. theory and practice of marketing in the usa. m.: economics 1981. 3. kostyukhin d. i. marketing. m.: economics. 1974. 4. krulis-randa is marketing: teorie und praktis . unternahmung 31(1). 66. 1977. 5. vargo s., lash r. development of a new dominant marketing logic. russian journal of management. 2006. no. 4(2). pp. 73-106. 6. tretyak oa evolution of marketing: stages, priorities, conceptual base, dominating logic. russian journal of management. 2006. no. 2. p. 138. 7. fundamentals of marketing. kotler , philip. short course . : per. from english. m .: publishing house "williams", 2009. 656 p. 8. tretiak o.a. evolution of marketing: stages, priorities, conceptual base, dominant logic // russian journal of management. 2006. no. 2. s. 129. 9. volkova l. wheel of market changes // practical marketing. 2005, no. 7. c.6. 10. bondarenko v.a. marketing support of the infrastructure of foreign economic activity: evolution, current state and transformational trends. monograph. rosto v/d, 2010. s. 10-13. 11. pisareva e.v. imperatives and guidelines for the evolution of marketing theory in the context of the formation of a "surplus economy". monograph. m.: tskb "bibkom", 2014. 150 p. 12. bagiev g.l., tarasevich v.m., ann h. marketing. m .: cjsc "publishing house of economics", 2001, p. 465. 13. gardner b., levy s. the product and brand // harvard business review. 1955 vol. 33. no. 2. p. 33-39. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 128 www.americanjournal.org increase jobs for transport companies in uzbekistan by increasing the purchase of products manufactured by people with disabilities rashidov dilovar najmiddinovich senior lecturer of tashkent state transport university a b s t r a c t k e y w o r d s in this article, specialized enterprises for people with disabilities in the republic are studied. issues such as the condition of the enterprises, the extent to which the available opportunities are being used, the purchasing power of the manufactured products, the created conditions were analyzed in depth, and proposals were prepared for the promotion of transport enterprises by purchasing the products produced in these enterprises. communities of persons with disabilities, disabled people, enterprises, production, jobs, products. introduction according to the results of the analysis, there are 156 enterprises owned by societies of persons with disabilities in the republic. today, 1,606 employees, including 1,204 disabled people, work in the above enterprises. types of activities of societies of persons with disabilities were analyzed. according to it, enterprises can be divided into the following groups depending on the type of activity: 1. enterprises engaged in one type of activity: a) production; b) service provision; c) production and service. 2. enterprises engaged in two or more types of activities: a) production; b) production and service. according to the results of analysis and studies, the share of enterprises engaged in production activity is more than 90%. the number of such enterprises is 144 across the country. it is worth noting that 87.5% of this number, i.e. 126, are engaged in tailoring, textile and textile products production, and cotton processing enterprises. therefore, it is necessary to pay special attention to this area when developing measures to improve the health of these enterprises. examples of such enterprises are "gozal yurt revanaq educational production enterprises" llc belonging to the society of the blind of uzbekistan in andijan (produces mattresses, gray and sewing products by processing cotton), "shofirkon educational manufacturing enterprises" llc (sewing products) in shofirkon district of bukhara region. ), jizzakh region sh. "navqiron nurshod" subsidiary american journal of business management, economics and banking volume 12 may, 2023 p a g e | 129 www.americanjournal.org (sewing products) belonging to the society of disabled persons of uzbekistan in rashidov district, "karmana educational production enterprise" llc belonging to the society of the blind of uzbekistan in karmana district of navoi region (recycling cotton and producing mattresses, blankets and sewing products), in the city of namangan "sherbuloq textile educational production enterprises" llc belonging to the society of the blind of uzbekistan (produces mattresses, blankets and sewing products by processing cotton) can be pointed out. it is also worth noting that namangan and fergana regions remain the regions with the largest number of enterprises and the areas of activity of enterprises compared to other regions. 14 of the 24 existing enterprises in namangan region are tailoring, weaving, furniture making, beekeeping, handicrafts, construction and assembly works, poultry farming, general catering, computer services, environmental assessment service, cast iron production, mold bread production, school supplies production (bag, pencil box), operates in the fields of gate production. also, 26 enterprises in fergana region are operating in 9 directions tailoring, weaving, construction and assembly work, folk medicine, health training courses, home economics, handicraft training courses, confectionery, farming. according to the conducted studies and analysis, a total of 237,498.5 million soums are required to improve the financial, economic, technical and technological condition of the 156 associations of persons with disabilities in the republic, to modernize them, to increase the number of jobs for the disabled and to improve their working conditions. as a result, 9,500-11,000 new jobs for the disabled will be created across the country. along with the measures implemented to improve the financial, economic, technical and technological condition of enterprises owned by societies of persons with disabilities, to modernize them, to identify specific sources of attraction of local and foreign investments, as well as to increase jobs for disabled people and improve their working conditions. at least 50% of the annual textile industry products and goods purchased by transport companies (including blankets, mattresses, pillows, sets of sheets, special clothes for workers, t-shirts, sweaters, socks, underwear, hats, all kinds of furniture, etc.) it is proposed to purchase from enterprises belonging to societies of persons with disabilities in the relevant area. references 1. sainsbury r. labour market participation of persons with disabilities – how can europe close the disability employment gap? // the right to work of persons with disabilities – international perspectives university of kassel, 8-10 march 2017. url:http://www.the-right-towork. com/files/2017/plenum/tag2/ sainsbury09_03_2017_kassel.pdf 2.taleporos g. employment and disability: a complex problem with no simple solution // ramp up. disability. discussion. debate. url: http://www.abc.net.au/rampup/ articles/2014/01/13/3922428.htm. 3.шуляева алефтина владиславовна (2017). решение проблем в профессиональном образовании и трудоустройстве лиц с ограниченными возможностями здоровья инвалидов. власть и управление на востоке россии, (4 (81)), 121-127. 4.рашидов, д. (2022). ўзбекистонда инклюзив меҳнат бозори истиқболлари: аҳолининг ижтимоий эҳтиёжманд тоифаларини ишга жойлаштириш учун иш ўринларини захиралаш: ҳолат, муаммолар ва таклифлар. scienceweb academic papers collection. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 130 www.americanjournal.org 5.алиева п.р., & мирзабалаева ф.и. (2014). проблемы создания достойной трудовой среды в трудоизбыточном регионе для людей с ограниченными возможностями. региональная экономика: теория и практика, (39), 62-69. 6.dilovar najmiddinovich rashidov, sharofat amonovna kadirova, & ziyoda abduvositovna karimova (2022). mehnat bozorida teng shartlarda raqobatlasha olmaydiganlar, ayniqsa nogironlarni zaxiralangan ish o‘rinlariga ishga joylashtirish muammolari. academic research in educational sciences, 3 (tstu conference 2), 281-285. 7.рашидов, д. (2023). давлат-хусусий шерикликда таваккалчилик турлари. scienceweb academic papers collection. 8.шабунова александра анатольевна, & фахрадова лейла натиговна (2016). актуальные проблемы трудоустройства инвалидов. экономические и социальные перемены: факты, тенденции, прогноз, (6 (48)), 126-142. 9.рашидов диловар нажмиддинович, & холбоев йигитали авганович (2022). корхона ва ташкилотларда ижтимоий ҳимояга муҳтож шахслар учун иш ўринларини йўналишлар кесимида захиралашнинг самарадорлигини ошириш. трансформация моделей корпоративного управления в условиях цифровой экономики, 1 (1), 73-78. doi: 10.24412/cl-36899-2022-1-73-78 american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 93 www.americanjournal.org areas of increasing the capacity of managers in state administration bodies rakhmatov j. a. bukhara engineering technological institute, intern-teacher of the department of management ikramov e. master of bukhara engineering technological institute a b s t r a c t k e y w o r d s after the independence of the republic of uzbekistan, the methods of conducting business activities and managing establishments began to change. issues such as the economic aspects of introducing corporate governance models, the formation of an effective management system of joint-stock companies (jsc), the principles of management, and the factors influencing its formation have begun to receive attention. after the republic of uzbekistan gained independence, the creation of the legal and organizational foundations for the formation of a multi-level economy and competitive environment, which can ensure high rates of economic growth and sustainable development of society, was set as a priority. management, economy, market model, marketing, corporate management, competition,development. introduction: the content of financial management is a broader concept than its essence. in the market economy, the law of value plays a regulatory role, and financial relations cover the entire production process in jointstock companies, including all economic relations. therefore, financial management is the main component of the general system of joint-stock company management. financial management profit maximization is simultaneously the goal of the entire management system, including production management. literature review there are different definitions and views of scientists in the study of financial management. according to a.d. sheremet, a.f. ionova, financial management is the process of managing money circulation, the formation and use of financial resources of the joint-stock company. according to a.n. gavrilova, financial management is a financial management system of a commercial joint-stock company, aimed at improving and developing financial relations through the continuous introduction of new principles, forms, structures and methods of management in order to increase american journal of business management, economics and banking volume 13 june, 2023 p a g e | 94 www.americanjournal.org production efficiency1. y.i. shokhina describes that financial management is a science that studies the achievement of strategic goals and tactical issues through the effective management of financial resources of the society2. in the interpretation of s.v. galiskaya, financial management is defined as the management of the assets of enterprises and the sources of their formation3. in our opinion, financial management is the science and art of managing cash flows of joint-stock companies by attracting the most rational sources of financial resources and using them with the greatest efficiency to achieve the strategic and tactical goals of joint-stock companies. research methodology and empirical analysis the financial decision-making process, like any managerial decision-making, consists of three steps. each type of decision requires specific information and analytical support. forecasting and planning decisions are based on accounting reports that summarize several years or quarters using prospective, trend analysis methods. decisions regulating the course of economic activity are based on rapid, including accounting information, using rapid analysis methods. assessment and control decisions are based on comparison of actual and plan (forecast) data for the current reporting period using retrospective, current analysis methods4. the content of modern financial management is characterized by deepening the methods of financial analysis and solving new problems related to the transition of the republic of uzbekistan to market conditions. such problems, for example, discounting income and capital, managing the capital structure by determining the cost of capital, being able to use economic diagnostic methods, managing financial risks, the effectiveness of financial leverage, etc. is considered solving them in practical management increases the efficiency of financial management in joint-stock companies. financial management is an integral part of the general management system of a joint-stock company, and it, in turn, represents a system of rational management of the process of financing the economic activities of joint-stock companies, which undertakes the movement of financial resources and the formation of financial resources arising during the movement. based on this, financial management can be described as a system of rational and efficient use of capital, as a mechanism for managing the movement of financial resources directed to increasing the amount of capital, increasing investments and increasing financial resources. financial management is aimed at supporting the normal circulation of financial resources, whose effectiveness is characterized by the rate of circulation (transaction rate). the new complex process of market economy formation in the republic of uzbekistan created the need to teach financial management as a science of managing the finances of a joint-stock society aimed at achieving strategic and tactical goals. the priority goal of financial management is to maximize the economic efficiency of the property owner. the mechanisms for achieving this goal are effective dividend and investment policy, credit policy of the joint-stock company, sufficient liquidity and optimal working capital policy, policy of optimal formation of the taxable base. 1 gavrilova a.n. etc. financial management. m.: knorus, 2015. -111-114 p. 2 e.i. shokhina. financial management. m.: knorus, 2010. 27 p. 3 s.v.galitskaya. financial management. the financial analysis. enterprise finance: m.: eksmo, 2009.-19 b. 4 mulaydinov, f. m. (2019). econometric modelling of the innovation process in uzbekistan. форум молодых ученых, (3), 35-43 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 95 www.americanjournal.org the secondary goal of financial management complements and clarifies the primary goal. its essence is to establish effective business cooperation with customers and creditors, economic entities in the joint-stock company, which serves the development of the business of this joint-stock company. the mechanism for ensuring the effectiveness of business cooperation is based on the relations of the parties, the control of the full return and term of the invested funds, the effective scheme of providing guarantees, pledges, leases, commodity loans, bank services on the main amount of the debt. justification of the terms of the bond loan, ensuring the positive effect of financial support, etc. the following are the main tasks of financial management in joint-stock companies5: tasks of financial management in joint-stock companies : − ensuring the balancing of material and monetary flows; − achieving financial stability and financial independence; − provision of funding sources finding internal and external sources of short and long-term funding, optimally combining these sources to the extent that allows to increase the profitability of own capital and reduce financial costs; − effective use of financial resources to achieve strategic and tactical goals of joint-stock companies. conclusion in conclusion, it should be said that effective management practices in uzbekistan are at a stage of development due to objective economic difficulties, the imperfect regulatory framework, and the insufficient level of training of specialists. modern economy is characterized by the following: ➢ low level of charter capital of privatized joint-stock companies; ➢ high value of financial resources; ➢ low investment attraction of joint stock companies; ➢ underdevelopment of the stock market and financial infrastructure. references 1. gavrilova a.n. etc. financial management. m.: knorus, 2015. -111-114 p. 2. e.i. shokhina. financial management. m.: knorus, 2010. 27 p. 3. s.v.galitskaya. financial management. the financial analysis. enterprise finance: m.: eksmo, 2009.-19 b. 4. a.d. sheremet, a.f. ionova finance of enterprises: management and analysis uch.pos. m: infra-m 2007, p. 36. 5. nusratovich, s. h. (2019). the role of the food industry in the national economy. academicia: an international multidisciplinary research journal, 9(10), 26-34. 6. sabirov, k. n. (2021). evaluation of the structural changes in production in the food industry. academicia: an international multidisciplinary research journal, 11(1), 1727-1737. 5 mulaydinov, f. (2021). digital economy is a guarantee of government and society development. ilkogretim online, 20(3), 1474-1479. american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 127 www.americanjournal.org theoretical basis of statistical research of population employment, improvement of financing in business entities shakirova nigora akhralovna associate professor, department of statistics and econometrics, tashkent financial institute a b s t r a c t k e y w o r d s this article examines the challenges of unemployment and explores effective strategies to ensure a well-employed population in business entities. by focusing on key areas such as education, entrepreneurship, and government initiatives, this article aims to provide insights into fostering a robust job market and promoting economic growth. employment, business entities, workforce, job market, prospects, strategies. introduction unemployment is a significant challenge faced by societies worldwide, affecting the economic and social well-being of individuals and communities. one crucial factor in combating unemployment is ensuring the availability of employment opportunities within business entities. this article explores the prospects and strategies for enhancing employment prospects in various business organizations. by fostering a healthy and vibrant job market, societies can experience increased economic growth, reduced poverty, and enhanced overall quality of life. promoting economic growth:a thriving economy translates into increased business activities, leading to a higher demand for skilled workers across different industries. governments, in collaboration with private entities, must implement policies that encourage economic growth. these policies may include tax incentives, investment in infrastructure, and support for research and development. skill development and training:business entities should actively participate in skill development programs that equip potential employees with the necessary competencies for specific roles. companies can collaborate with educational institutions and vocational training centers to design relevant training programs. diversity and inclusion:creating a diverse and inclusive work environment fosters innovation and creativity. companies must adopt policies that promote diversity and inclusivity to attract a broader talent pool and ensure equal opportunities for all. ensuring employment of the population in business entities requires a multi-faceted approach that involves various stakeholders, including the government, businesses, educational institutions, and individuals themselves. here are some ways and prospects for achieving this goal: • promote a favorable business environment: governments should create policies and regulations that support business growth and investment. this can include reducing bureaucratic american journal of business management, economics and banking volume 14 july, 2023 p a g e | 128 www.americanjournal.org hurdles, offering tax incentives for job creation, and fostering a business-friendly climate that encourages entrepreneurship. • invest in education and skill development: access to quality education and skill development programs is crucial for preparing the workforce to meet the demands of modern businesses. governments and businesses should collaborate to develop vocational training, apprenticeship programs, and lifelong learning opportunities. • encourage entrepreneurship: governments can support aspiring entrepreneurs by providing financial assistance, mentoring programs, and access to resources and networks. entrepreneurship can lead to the creation of new businesses, generating more employment opportunities. • promote small and medium-sized enterprises (smes): smes are significant contributors to employment in many economies. governments can provide targeted support to smes, such as access to finance, technical assistance, and preferential treatment in government procurement. • industry-academia collaboration: foster collaboration between businesses and educational institutions to align the curriculum with industry needs. this can ensure that graduates have the relevant skills and knowledge required by businesses. • labor market information system: implement a robust labor market information system to help job seekers and businesses understand the current job market trends, skills in demand, and job opportunities available. • flexible labor laws: labor laws that strike a balance between protecting workers' rights and providing flexibility for businesses can help encourage job creation. businesses may be more inclined to hire when they have some flexibility in workforce management. • support remote work and telecommuting: advancements in technology have made remote work more feasible. encouraging businesses to offer remote work options can help expand the pool of potential employees and reduce geographical employment disparities. • targeted incentives for job creation: governments can provide targeted incentives, such as wage subsidies for hiring certain demographics, to encourage businesses to hire more people from vulnerable or underrepresented groups. • invest in infrastructure: infrastructure development can stimulate economic activity and attract businesses to set up operations in certain regions, thus creating employment opportunities for the local population. • promote inclusive growth: ensure that economic growth benefits all segments of society. reducing income inequality can lead to higher consumer spending and a more robust economy, creating a positive cycle of job creation. • support sustainable industries: encourage the growth of industries that focus on sustainability and social responsibility, as they tend to be labor-intensive and can generate more employment opportunities. • encourage foreign investment: attracting foreign direct investment can lead to the establishment of new businesses and industries, which can create additional job opportunities for the local population. it's essential to recognize that the employment landscape is constantly evolving, influenced by technological advancements and global economic shifts. therefore, a dynamic and adaptive approach american journal of business management, economics and banking volume 14 july, 2023 p a g e | 129 www.americanjournal.org to employment generation is necessary to ensure that the population can access meaningful and sustainable job opportunities within business entities. although the prospects of ensuring employment opportunities in business entities are promising, challenges persist. economic fluctuations, technological advancements, and shifting market demands can influence employment trends. therefore, a dynamic approach is necessary, focusing on adaptability and continuous improvement. technological disruptions: automation and artificial intelligence can potentially displace certain job roles. to address this, businesses must anticipate these changes and provide employees with reskilling and upskilling opportunities to transition into new roles. remote work arrangements: the covid-19 pandemic accelerated the adoption of remote work. while this offers benefits like access to a broader talent pool, it can also lead to job market saturation in specific sectors. business entities should strike a balance between remote and on-site work to maximize efficiency and retain employee engagement. conclusions: ensuring employment opportunities in business entities requires collaborative efforts from governments, businesses, and society at large. by focusing on economic growth, skill development, and fostering a diverse and inclusive workplace, we can create a sustainable job market that benefits both individuals and the overall economy. suggestions: public-private partnerships:governments should collaborate with private entities to design and implement policies that promote employment growth and align with the needs of businesses. lifelong learning initiatives:encourage a culture of continuous learning and upskilling within organizations to prepare the workforce for emerging job roles and technologies. mentorship and internship programs:establish mentorship and internship programs to bridge the gap between educational institutions and businesses, facilitating smoother transitions into the job market for fresh graduates. social safety nets:while focusing on employment, safety nets like unemployment benefits should be strengthened to support individuals during periods of job transition or economic downturns. by taking these measures, societies can unlock the full potential of their human capital, creating a thriving job market within business entities and bolstering economic prosperity. references 1. decree (2020) of the president of the republic of uzbekistan "on measures to radically update the state policy on economic development and poverty reduction" no. pf-5975. 26.03.2020. _ (decree (2020) no. pd-5975 of the president of the republic of uzbekistan "on measures to radically update the state policy on economic development and poverty reduction." 26.03.2020.) 2. measures to reduce poverty through entrepreneurship development and vocational training were identified.https://xs.uz/uzkr/post/tadbirkorlikni-rivozhlandani-va-kasbgateyorlashorgali-povertyreduction-measures-defined american journal of business management, economics and banking volume 14 july, 2023 p a g e | 130 www.americanjournal.org 3. g.r. boltaboeva. the importance of innovative technologies in small business, solutions to the problems of small business and private entrepreneurship, and a collection of theses. 4. g.r. boltaboeva. the importance of innovative technologies in small business, solutions to the problems of small business and private entrepreneurship, and a collection of theses 5.m. rakhmanov. web of semantic: universal journal on innovative education 2 (4), 339-342, 2023 statistical analysis of problems related to ensuring the stability of the banking system 6.m. rakhmanov. international journal of business diplomacy and economy 2 (4), 34-41, 2023 modeling the impact of bank shares on income in the fund market 7.f mirzaev, m rakhmanov. saarj journal on banking & insurance research 10 (4), 50-61, 2021 about methods of using valuable information in risk modeling of commercial banks 8.m. rakhmanov. saarj journal on banking & insurance research 10 (6), 11-20, 2021. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 64 www.americanjournal.org development of tourism in uzbekistan (1991-2023) doston oblokulov o‘ktamovich bukhdu historical and original study department master's student a b s t r a c t k e y w o r d s this article discusses the stages of tourism development in uzbekistan. it is mentioned that tourism is a developed sector. tourism, historical and cultural monuments, infrastructure, state, modernization. introduction there are many historical monuments and cities that are worthy of praise in our country. no tourist will regret visiting these places. our tourist destinations have their own nationality. our nationality and historical and cultural monuments are also very famous in other countries and certainly have their place. in particular, in april 2021, a presentation of uzbekistan's pilgrimage tourism potential was held in dagestan. on the instructions of deputy prime minister, chairman of the state tourism development committee, aziz abduhakimov, promotional activities in the direction of "travel to the land of imams" have started in dagestan. when we talk about the tourism potential of our country, we are reminded of the historical monuments that stand tall in front of our eyes, our historical cities that have a national and modern color. uzbekistan is proud of its ancestral architectural monuments that have survived to this day. the ichan-qala complex in khiva, historical centers in bukhara, shahrisabz and samarkand cities are included in the special list of unesco's "world heritage". unique monuments and architectural structures in these cities reflect the past and play a major role in the history of the country. among our historical and cultural cities, famous all over the world and attracting the attention of tourists, there is no mistake if we include such cultural centers as tashkent, samarkand, khiva, termiz, karakalpakstan, bukhara. in these settlements, our national traditions, historical monuments, traditions and customs that have been indelible since time immemorial, national atlases and addresses, which have become famous all over the world, cannot fail to attract people with their uniqueness. our country has a great potential for the development of international tourism. twenty years ago, no one knew uzbekistan as a promising tourism area. if we look at the development history of each country, it is definitely related to tourism. each country provides its tourism sector with sufficient needs to introduce its country to the whole world. every country that invests in its development will occupy the highest level among developed countries in the coming years. we should introduce the legacy of our ancestors to the whole world. today, the government is doing great work in the areas of modernization of the tourism sector, improvement of transport and hotel infrastructure in the state, and improvement of the regulatory and legal framework in tourism. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 65 www.americanjournal.org after the country gained independence, the development of tourism became a priority issue with the direct initiatives of the first president, and it is still implementing its future plans. the development of tourism in the republic of uzbekistan is divided into five stages: the first stage. this stage includes the year 1992. this stage is characterized by the initial formation of national tourism in our republic. at this stage, the national company "uzbekturizm", considered the leader in tourism infrastructure, was founded. the second stage. this stage includes the years 1993-1995. in this, the national development model of tourism was developed. at this stage, the volume of providing tourist services increased. germany will open its first representative offices in countries such as great britain, usa, united arab emirates and russia. the third stage includes the period of 1995-1997. in this, the process of privatization in the field of tourist services began. at the beginning of 1996, about 90% of the total amount of tourist objects in the system of the national company "uzbekturizm" was taken out of state control. the fourth stage includes the year 1998. at this stage, opportunities were created to increase the export potential, to ensure a stable flow of foreign currency and tourist investments. reshaping of the service infrastructure, in particular, the border, customs and airport services that welcome tourists from abroad has begun. the fifth stage includes the period from 1999 to the present. at this stage, the position of tourism consultant was introduced in the diplomatic missions of uzbekistan in foreign countries. speaking about the development of tourism infrastructure in uzbekistan, it is important to dwell on the division of the country into main tourism regions. today, there are four main tourist regions in the republic, they are fergana, samarkand-bukhara, tashkent and khorezm tourism regions. fergana tourism region includes fergana valley. its tourist resources consist of archeological excavations and architectural monuments, favorable natural conditions, products of traditional folk crafts and art, industrial and agrarian complexes. the existence of a wide network of roads and railways here also provides an opportunity to use the fergana region for tourism purposes, to place tourism bases and recreation centers in its entire territory. tashkent tourism region has universal opportunities for the development of all types of tourism in the future. cultural monuments in this tourism region, today's life of the capital region, constructions, new cities and villages, modern culture, nature of the region, rich landscape, colorful flora and fauna are important factors that make it attractive. the network of automobiles and railways connects tourism centers in the region of tashkent tourism with each other and allows the development of railway and automobile tourism around the city. samarkand-bukhara tourism region includes samarkand, bukhara and navoi regions. the world-famous architectural monuments of samarkand and bukhara are the basis for the development of tourism in this region. in addition, the railway and wide network of highways passing through the zarafshan river, low passes and good roads passing through the zarafshan mountain range are very favorable factors for the development of tourism in the region. in the future, the development of existing opportunities in these regions may lead to further expansion of the market of tourism services in our country. in the economic literature, issues related to historical and cultural tourism have been studied by a number of scientists and defined in different ways. richard greg, a dutch researcher, defines historical-cultural tourism as "people going to cultural, interesting places far from their usual place of residence in order to gather new information and experience to satisfy their cultural needs." american journal of business management, economics and banking volume 11 april, 2023 p a g e | 66 www.americanjournal.org russian expert y.v. kolotova defines tourism as "the potential of the socio-cultural environment, which includes all the possibilities of the country, connected with the traditions and customs, the characteristics of the household." scientists and researchers of our country i. tokhliyev, r. amriddinova, sh. the scientific works of roziyev, o. khamidov, n. ibadullayeva, f. aziztoyeva, b. mamatov and others have covered many issues related to the theoretical and practical aspects of the development of tourism, but some issues related to the development of historical and cultural tourism have not been sufficiently studied. therefore, some problems remain relevant even today. in particular, n. tokhliyev: "tourism is one of the types of active recreation in french. "tourism is defined as the departure of an individual from the place of permanent residence for a period of 1 year without engaging in paid activities at the destination for health, educational, professional or other purposes." researcher sh. roziyev explained the indicative management methodology that realizes the mutual integration of the concepts, methods and subjects of tourism activity created in the improvement of the organizational-economic mechanism of historical-cultural tourism. now, if we talk about the history and periods of development of tourism, the history of tourism goes back to the beginning of the 19th century. first, organized tourism was established from england to france (1815). the english priest thomas cook, considered the founder of tourism, organized the first railway tourism in 1843. after that, he created his own private tourism enterprise and in 1866 the first tour groups were sent to the usa. in conclusion, the development of the tourism sector in uzbekistan is organized on a very large scale. references 1. a.f.saidov “turizm –tinchlik va farovonlik timsoli. 2. sh.r.fayziyeva .”o`zbekistonda turizm rivojlanishining iqtisodiy mexanizmini takomillashtirish “.nomzodlik dissertatsiyasi.toshkent .2006. 3. международный туризм сократился в 2020 году до уровня 1990 год. 4. erkayeva barno abdurahimovna “ o’zbekistonda tarixiy-madaniy turizmni rivojlantirishning ijtimoiy-iqtisodiy jihatlari ”. 5. richards . g. “cultural tourism in europe. cabi, wallingford. (1996) [1,c.45] [5 6. колотова е. в. рекреационное ресурсоведение: учеб. пособие.m.:pmatc. 7. ro’ziyev sh. “ o’zbekistonda tarixiymadaniy turizmni rivojlantirishning tashkiliyiqtisodiy mexanizmini indikativ boshqarish metodikasi”. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 66 www.americanjournal.org management of marketing in agriculture sultonova dilnozakhan dilshodovna andijan agriculture and agro-technologies assistant of the institute a b s t r a c t k e y w o r d s marketing management consists of organizing influence on the level , time and character of demand in order to satisfy demand and obtain more profit. marketing management system must be integrated with interrelated elements ( personnel , structure, functions , management influence, technical means). in addition, it should be regularly improved based on scientific achievements and best practices introduction in order to dynamically influence the market and effectively organize the supply of goods, it is necessary to carry out the marketing process continuously, parallelly and synchronously. the marketing management system should be cost-effective, flexible, responsive to agribusiness policies, exigencies, consumer exigencies and requirements, market conditions, competition, commercial changes, entrepreneurship, and production level. marketing activities in agricultural and agro-industrial structures are carried out by separate services or employees. for example , in agro-industrial enterprises and associations, the marketing service should consist of 4-7 people . in such enterprises and associations, the marketing service can be built on a functional or regional basis. the marketing service is managed by the marketing director or the deputy director for commercial affairs. other specialists deal with sales, advertising and promotion, new products, marketing research and other issues. in agricultural enterprises, there is a position of deputy head for commercial issues, and depending on the scale of production and the number of types of products, one to three employees work under him. farms, peasant farms and other structures of small businesses. based on the level of freedom in the management of the economy, various marketing functions can be managed by the managers and specialists of the economic units. marketing service workers and employees performing marketing functions work within the framework of the laws of uzbekistan related to market relations, agribusiness, marketing and entrepreneurship aspects, the results achieved by science in the fields of agribusiness, marketing and production management, economics, social psychology, financing, lending, and law. uses they should be familiar with the laws of the market, the laws, functions and processes of marketing management, the achievements made in foreign and domestic science in the field of marketing management, know how to make marketing decisions independently, and continuously improve their skills. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 67 www.americanjournal.org marketing staff should have clear information about the demand for goods, market segmentation, goods, services and activities of competitors, macro and micro packaging, professional and intellectual potential of the company's team members. regulation of marketing management functions is carried out with the help of job manuals, which specify the duties, rights and responsibilities (responsibilities) of employees. these functions should be defined in the job manuals of department heads, company heads and small business entities. the process of marketing management consists of the following stages: analyze market and marketing opportunities ; • forecasting and planning activities; • organization and regulation of the marketing process; • control of the marketing process; • evaluation of marketing activity. analyzing the market and marketing opportunities requires the following : market analysis , consumer and competitors , goods and services , studying the requirements of the marketing system , to study the external environment, external economic relations , effective way ( possibilities ) . by analyzing the market, the following are determined : market size, main trends and seasonal factors; potential sales opportunities for products launched or available in the market ; existing market segmentation ; consumer characteristics and other characteristics of goods may change ; composition of consumers; used in assortment planning , sales and advertising organization purchasing factors and objectives ; product sales volumes, their share in the total market volume, including their shares by segments and regions ; level and quality of advertising ; competition and commercial practices; competitiveness of the enterprise and its position in the market. after that, the possibilities and methods of searching for new market segments, increasing the competitiveness of the enterprise and its products, and increasing the stability of the enterprise in the market are determined. studying the consumer and demand is an important condition for designing a marketing system. the consumer's personal , cultural and psychological characteristics, as well as social and economic factors affect his actions and purchases. as personal factors , age, gender, position in society , nationality, traditions and stages of the family life cycle , type of activity, lifestyle can be indicated. purchases of consumers, their volume, assortment, periodicity of purchases depend on the above factors. culture has a strong influence on consumer demand, because it forms a basic set of values in a person. if these factors are not taken into account, a certain product will be unnecessary for consumers. the economic condition of the buyer is also a factor that strongly affects consumer demand. the economic situation depends on the income of the consumer, the amount of his savings and others. depending on these factors and their type and product quality, the demand can be full, excessive, unstable, inefficient, hidden. in the process of marketing management, it is important to consider all factors and build a marketing strategy, tactics and program based on them. in the analysis of competitors' activities, the goods, their quality, usefulness, their characteristics, life cycle, level of innovation, competitiveness, advantages and disadvantages in comparison with the goods of the company conducting the analysis are studied. after that, the organization of product movement, sales promotion, product advertising, promotion, marketing service, positive and negative aspects of the activity will be studied. the information obtained is used to manage the marketing service. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 68 www.americanjournal.org analyzing the marketing system in enterprises or small business entities to determine its effectiveness, to study the possibilities of future use or to determine whether it is appropriate or not to transfer the activity to the production of another type of product, to determine the other life cycle and other competitiveness of the product, to determine other methods of promotion, the quality of advertising and determination of new methods of promotion of commercial activities, determination of sales and distribution channels, determination of feasibility of new product production or provision of other services, finding new consumers makes it possible to define perspectives. macro-environmental factors affecting the market include: political-public system and law, the level and structure of the national economy; culture, education, customs; economic and social conditions in society, demographic factors. micro packaging factors factors include: the level of competition with enterprises of the same or similar industries, market conditions, specific market structure and consumer requirements; competitors' advertising, etc. the analysis ends with determining the effectiveness of export activity and studying (determining) the possibilities of foreign economic relations if it is being implemented. various statistical, economic, mathematical methods are used in the analysis. questionnaires, interviews, surveys, personal contacts, conferences, symposia are often used in the analysis. the effectiveness of the analysis depends on the adequacy of information, reliability and effectiveness of the methods used. the market and marketing opportunity analysis is completed, marketing activities are forecasted and planned. it is important to be able to see changes in the market, opportunities to create new segments, and methods of ensuring the competitiveness of new products. it is worth noting that forecasting should not be based on empirical observations and inner feelings, but on scientific data taking into account many factors. after the general strategic goal of the enterprise is determined, for example, after the demand for a new product is formed, it is necessary to build a chain of measures for the implementation of this goal. to achieve the goal, the following issues should be resolved: which goods are introduced to the market, in what assortments and at what prices; what kind of consumer the product is intended for and what other potential (cash) buyers can be attracted; what conditions should be created for the planned sale of goods; through which channels the goods will be delivered; by what means can the impact on demand and sales promotion be strengthened; what should be the after-sales service and who will do it; what economic results are market participants hoping for and what costs should be incurred for this. the solution of these issues makes it possible to understand the tactics of all market participants, especially the tactics of marketing management in agriculture. list of references 1. g. l. bagiev et al. "marketing" m. peter. 2005. 2. danchenok l.a. "marketing: educational and practical manual. m2004. 3. golubkov e.p. "marketing studies" m. finpress. 2003. 4. mcdonald's. marketing plans. how to make them and use them. m. technology. 2004. 5. berezin i. “marketing analysis”.-m.ooo journal.personnel management.2004. 6.fattakhov a.a.va boshkalar.”marketing-boshkaruvning bozor conceptsi.-t.tdiu.2001 7. kosimova m.s. ergashkhuzhaeva sh.zh. "marketing".t.tdiu.2004. american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 45 www.americanjournal.org ways to develop the financial market infrastructure shodiyev odiljon salim o’g’li lecturer of the department of "finance" of karsh institute of engineering and economics a b s t r a c t k e y w o r d s this article discusses the theoretical basis for the development of financial market inflation in our country, as well as existing situations, analysis and prospective plans. financial market infrastructure, securities, capital, bonds, action strategy, financial instruments. (matthew 24:14; 28:19, 20) during the modern development of the world economy, operations in financial markets became more active and became a decisive factor in economic development. global financial markets have grown intensively over the past 15 to 20 years, and international treatment of financial instruments has reached trillions of dollars. according to the international monetary fund, the volume of world financial assets has more than doubled from 1980 to the present day. the volume of financial markets has grown rapidly relative to gross domestic product values and has made it possible for economic entities to reach capital and effectively distribute risks. unfortunately, today's widespread coronavirus pandemic and the resulting global economic crisis have begun to once again test the architecture of the world economy, including financial markets. "until now, as the largest event in the last 75 years of development of the world economy, we remembered the global financial crisis that began in 2008. at that time, the uncertainty in the world's financial markets was much sharper. specifically, on us stock markets, indexes had fallen as much as 83 percent in one day, and the price of oil had "collapsed" from $140 to $30. and the crisis that is beginning in 2020 may look even more dangerous, depending on its scope. of course, in such a sharp and testing period, institutional support for it will be of great importance in maintaining the stability of the national financial market. the experience of developed countries in the market system shows that the majority of real middle owners are formed by attracting the population's funds to the securities market. in the context of economic crises, it will be possible to stabilize the economy by attracting its empty funds in the economy using financial instruments, as well as to strengthen the circulation of money and the circulation of national currency. in general, the development of the capital market or, in general, the financial market in conjunction with the banking sector is a barometer of the economy, an indicator of the state of the economy in the country and the investment environment. in recent years, necessary measures have been taken to institutionalize the national securities market. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. recognizing american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 46 www.americanjournal.org that the safe maintenance of the financial system at the same time is one of the main factors in ensuring macroeconomic stability in the future, today there is a special emphasis on improving the efficiency of the financial relations system based on international standards. in recent years, as part of the action strategy for the five pillars of development of the republic of uzbekistan, a historic step has been taken towards the development of the financial market in our country, including the stock market. specifically, in accordance with the state program for the implementation of the action strategy for the "year of supporting entrepreneurship, innovative ideas and technology" for the five pillars of national development during 2017-2021, as approved by the pf-5308 order of the president of the republic of uzbekistan on january 22, 2018, the development of the financial market, the fundamental reform of public administration in the field, and the repetition of government agencies, the abolition of excessive control functions and the establishment of a single government agency for the financial market. of course, it was not unconscionable for this issue to become one of the priorities of the reform program. to this day, ineffective, it can be said that from a logical point of view, an ineffective system has been introduced in the republic of uzbekistan to regulate the financial market, to regulate and develop the securities market, which is considered its main component. that is, the center for securities market coordination and development, considered the competent government agency responsible for the regulation and development of the securities market, was established before the state competition committee, the competent body in the field of public property management. the current situation in the stock market, especially the secondary market, has shown that the main tasks of financing the real sector of the economy have been left unfulfilled by the national market of capital through the attraction of free funds from residents and investors, including foreign investors. the main reasons hindering the development of the stock market were the failure of the organizational structures in the management of this market to meet the modern requirements, the imbalance of excessive requirements for enterprises, as well as the relationship between the privatization processes of the market in the republic, which do not meet balanced approaches to reforming the stock market sectors. despite the fact that the stock market in uzbekistan has been operating for 25 years, the development of the stock market in the republic today is at an early stage. during this period, the stock exchange played the role of the state competition committee's auction site, namely, the privatization mechanism of state-owned enterprises and organizations in most cases. the regulation of these exchange activities was also carried out directly by the state census committee. disputes arising during the transaction between an investor and a seller of shares on the stock exchange have been considered by a special center or commission established under the state competition committee. this will enable the development of a competitive environment based on open market relations in the development of the securities market in our country over the years, as well as the state of fund market development, not allowing the real sector of the economy to take advantage of existing opportunities and capabilities to attract long-term and direct investment, including foreign investment, to effectively implement the targeted reforms and to rapidly innovative the republic has become an obstacle to development. pf-5630 of january 14, 2019 concerning measures taken by the president of the republic of uzbekistan to fundamentally improve the system of smooth implementation of institutional and structural reforms and the reliable functioning of the financial market american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 47 www.americanjournal.org the reorganization of the national capital market development agency as an independent body on the basis of the center for the coordination and development of the securities market under the state competition committee has ushered in consistent institutional changes in the field. conclusion as a result of the same institutional reforms, as a result of consistent measures taken by the capital market development agency to develop the national financial market, the volume of free-to-use securities in our country is expected to reach between 10 and 15 percent of gdp by 2025 (now 0.2 percent) through the widespread use of the unused potential of the financial market in the context of the global economic crisis implementation will reduce the burden on the state budget and bank loans, create a healthy competition environment in the financial sector, and also improve the quality of financial services provided to subjects of the economy. list of available publications 1.a.sh. bekmurodov, "another global economic crisis is knocking" – people's word newspaper, april 10, 2020, no. 74 (7576). 2. "on the state program for the implementation of the action strategy for the "year of supporting entrepreneurship, innovative ideas and technology" for the five pillars of national development during 2017-2021" pf-5308-son farmoni https://lex.uz/search/nat?actnum=5308. 3.https://uzanalytics.com/iqtisodi%d0%b5t/6772. 4.https://cmda.gov.uz/news/ development of the capital market of the republic of uzbekistan the official website of the agency. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 31 www.americanjournal.org comparative analysis of multivalued phraseological units of the russian and uzbek baratov rashid gulamovich candidate of philology, associate professor of the department of russian language and literature, andijan state university. andijan. uzbekistan. +998979982046 e-mail: baratov.rashid@list.ru a b s t r a c t k e y w o r d s the article is devoted to the little-studied phenomenon of phraseological polysemy in the russian and uzbek languages. comparative analysis of multivalued correlates revealed a complex picture of the relationship between the meanings of fe in the russian and uzbek languages, confirming the hypothesis that two multivalued phraseological units of different languages in rare cases correspond to all their meanings. phraseological unit, phraseological polysemy, contrastive analysis, interlanguage equivalence. phraseological ambiguity is a relatively little-studied phenomenon. this is due to a number of reasons. firstly, the study of phraseological polysemy is hampered by the a priori opinion that polysemy in phraseology is either a rare phenomenon compared to lexical polysemy, or does not exist at all (permyakov, pavlova, etc.). secondly, most phraseologists, without denying the existence of phraseological ambiguity, speak of the uncharacteristic of this phenomenon for the phraseological system in comparison with the lexical one (a.i. molotkov, v.p. zhukov, n.m. shansky, sh.u. rakhmatullaev and etc.). let's look at statistics to see if this is true. the percentage of multi-valued phraseological units to the total number of units in the phraseological dictionary of the russian language, ed. a. i. molotkova is 16%, in the "big russian-english phraseological dictionary" by s. lubenskaya 16%, in the "phraseological explanatory dictionary of the russian language" 31% [1, p. 20], in the explanatory phraseological dictionary of the uzbek language by sh.u. rakhmatullaev 15% [2, p. 12]. thus, the statistical analysis of the aforementioned phraseological dictionaries shows that the ratio of polysemantic phraseological units to the total number of idioms represents a fairly large number of units that certainly deserve separate study: it is the study of phraseological polysemy that can provide valuable information both for understanding the nature of phraseological meaning and for studying categories of polysemy and semantics in general. for a comparative description of polysemantic phraseological units of the russian and uzbek languages, it is essential to take into account the complex relationships of polysemantic phraseological american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 32 www.americanjournal.org units correlates, correlations of individual meanings, coincidence of the semantic structure of phraseological units. on the basis of the comparative analysis, various types of correlation of polysemantic phraseological units of the russian language and their correspondences in the uzbek language were revealed. the first type of match. the number of meanings of phraseologism in the russian language is greater than that of its uzbek counterpart. the russian phraseological unit has all the same meanings (or the same meaning) as the uzbek phraseological unit, but, in addition, the russian phraseological unit has other meanings that are absent in the uzbek language. so, pu from hand to hand has two meanings: 1. "directly from one to another"; 2. directly personally into hands, and its uzbek counterpart qo'ldan qo'lga (lit.: from hand to hand) has only one meaning directly from one to another. pu at one time has two meanings: 1. sometime in the past, before; 2. "in due time, when necessary", and its uzbek counterpart o'z vaqtida (lit.: in due time) has only one meaning "in due time, when necessary." thus, phraseological units from hand to hand, in due time, and their uzbek correlates qo'ldan qo'lga, o'z vaqtida, with the identity of their component composition, semantically coincide only partially. the second type of match. the russian phraseological unit and its uzbek correlate correlate in terms of component composition, however, the phraseological unit of the russian language has fewer meanings than its uzbek structural equivalent. in other words, the uzbek phraseological unit has all the same meanings (or the same meaning) as the russian phraseological unit, and in addition, some that are missing from the latter. so, for example, the phraseological unit raise ones head and the uzbek correlate bosh ko'tarmoq coincide in the meaning gaining confidence in oneself, in ones abilities, begin to act, actively manifest oneself (ichi kir odamlar faqat senga emas, hammamizga bosh ko'targanlar. sh. rashidov, burondan kuchli ). however, the phraseological unit bosh ko'tarmoq has meanings that are absent from its correlate in russian: 1) look to see (pochchaev desam, boshini ko'tarib qo'ydi-da va ishini davom etirdi. a. mukhtor, tug'ulish); 2) stop working qanday qilib ishni tashlab ketaman. hamma bosh ko'tarmay ishlayapti axir. uyat! sh.tursun, o'qituvchi; 3) waking up, getting in motion (. . . qishloqda el erta yotadi, chunki quyoshdan oldin bosh ko'taradi. sh. rakhim, khilola). in addition, in the uzbek language there are two homonymous phraseological units of the same structure: bosh ko'tarmoq (literally: to raise ones head) with the meaning sprout, sprout (hinalar muhabbat ko'klamida qizlar qo'lini o'pish uchun yerdan bosh ko'taradi. ko'tarmoq (literally: to raise ones head) has the meaning of begin to recover, start to feel better after an illness, in this meaning the phraseological unity bosh ko'tarmoq is usually combined with the words yostiqdan (from, from the pillow), kasaldan (from illness) (to'raxo'jaboyning ahvoli qanday ekan p.tursun, o'qituvchi, ular yaqindagina kasaldan bosh ko'targan, dardmand kishilarga o'xshaydilar, i.raxim, chin muxabbat). another example, the phraseological unit come to oneself and its uzbek equivalent o'ziga kelmoq (lit. come to oneself) coincides in the following meanings: 1. to get out of a faint, wake up after a faint and 2. calm down, stop worrying. however, the idiom o'ziga kelmoq (to come to your senses) has two more meanings to restore former strength, former health (u yo'l chetiga o'tirar, dam olar va hol yig'ib, o'ziga kelgach yana turib harakat qilar edi. p. tursin, o'qituvchi); and after a certain confusion, start thinking correctly, thinking, etc. (in this meaning, fe o'ziga kelmoq usually carries the words ana andi (now): ayb menda dedi zuhura dangal. ana andi uzinga kelding. n. nazarov, zamon); tarsakidan qo'rqmayman-u, "mushtum" dan qo'rqaman". ana endi o'zingizga keldingiz s. abdullaev, tui hangomasi. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 33 www.americanjournal.org phraseologism to take (pick up) in hands has the meaning of "subjugate, force to obey." in this meaning, the phraseological unit qo'lga olmoq (lit. to take in hand) coincides with the phraseological unit to take in hand in semantics. however, the uzbek phraseological unit is also characterized by other meanings that are absent from phraseological units to pick up. fe qo'lga olmoq, in addition to the indicated meaning, also has the following: 1) to seize something, to take possession of something (farg'onada yer suv bormi, from catch bormi barini sho'ro qo'lga olib chorakorga bo'lib berayotganmish. a. mukhtor. qoraqalpoq qissasi ); kommunistlar hozirdan boshlab tashabbusni qo'lga olishlari kerak. oybek, oltin vodiydan shabadalar. in this meaning, pu qo'lga olmoq is the equivalent of another phraseological unit of the russian language to take into your own hands, which also means to seize something, take possession of something. 2) arrest, take someone into custody (bobomurod taklamachini qo'lga olishga qaror qilinib, ijrosiga kirishildi. s. ainy, kullar); ivan vasilievich qo'lga olinib, bosmachining yolg'iz emasligini tahmin etdi. sh.toshmatov, erk kushi. more common are cases when a multi-valued phraseological unit of the russian language and its uzbek equivalent have both coinciding and different meanings. so, the phraseological unit raise a hand and its equivalent qo'l ko'tarmoq (lit.: raise a hand) coincide only in the meaning of swinging at someone, trying to hit someone, hitting someone. (ayol kishiga qo'l ko'tarish erkakning ishi emas. r. fayziy, yodgor), but differ in other meanings. for example, in russian phraseology, in addition to the indicated meaning, there are others that are absent from its uzbek correlate. it is to encroach on someone, to try to kill someone (and a local resident became such a dunce, and even raised his hand to a person, and not just a hand, but a gun! v. astafiev. the king is a fish) and come into a fight with someone or something: condemn, blame someone or something (you raised your hand to all literature). on the other hand, the uzbek pu also has meanings that are unknown to the russian pu, it is to express ones consent (shu yangi yerga kim paxta ekadi deyilganda, birinchi bo'lib umirzoq aka bilan komsomol qiz lolahon qo'l ko'targan edi. h. nazir, ko'korol chiroqlari), and to express a desire to speak, speak (. . . majlisni yopish uchun o'rnidan qo'zgalganda orqaroqda kimdir qo'l ko'tardi. s. anorboev, oksoy). a comparative analysis of polysemantic correlates revealed a complex picture of the relationship between the meanings of phraseological units in the russian and uzbek languages, confirming the hypothesis that two polysemantic phraseological units of different languages in rare cases correspond along the line of all their meanings literature 1. voznesenskaya m.m. on polysemy in russian phraseology. public education. pedagogy. scientific journal: "russian language at school" issn: 0131-6141 2012 source: https://naukarus.com/omnogoznachnosti-v-russkoy-frazeologii. 2. rakhmatullaev sh. phraseological dictionary of the uzbek language. tashkent,1978. 405 p. https://naukarus.com/o-mnogoznachnosti-v-russkoy-frazeologii https://naukarus.com/o-mnogoznachnosti-v-russkoy-frazeologii american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 111 www.americanjournal.org education to the field investments attraction to do amirov t.m. 1 1 trainee assistant, department of economic theory, samarkand institute of economics and service, uzbekistan phone: +99893 725 52 68 a b s t r a c t k e y w o r d s current in the day countries of the economy development and integration , qualified and competent to personnel has been of demand increased to go as a result education field efficient development and to the field investments active attraction reach important importance occupation is doing developed countries education field active respectively by developing growing up is coming in our article education field in development abroad experience , developed countries education to the field attraction being carried out investments, them attraction doer factors , them development ways about thought we walk with that together studied data education to the system apply and to practice current reach ways about info giving let 's go. investment, education system, study, education to the field attraction done investments, foreign education investments. introduction: technician in terms of investment the term work release assets reserves joining process as is determined this buildings , plants and equipment such as main tools buy to receive own into take can _ investments , as well as education through in the organization there is a person resources quality improve for money to spend own into take can _ present in the day of countries development and progressive to be done fast in pictures done increase as a result worker to power , wider by doing so to speak competent worker to power the demand is strong increased is going of this as a result all countries their own education system one until upgrade and is trying to develop . this one how much roads with done increase can _ of them the most effective ones and the ones you need two big to the group separate can _ education system development internal sources , to these state subsidies through training system reform do , in the country personnel encourage and scientific to the activity exclamation point actions the total organize reach etc enters _ the second education field development external sources to these foreign investments education to the field active attraction do , foreign authoritative universities branches to open , students and employees teaching and qualification increase for abroad to study to send through them knowledge , skill and qualifications increase such as input can _ education service show is a field, because it is labor to the market and in the end to the economy contribution adding knowledgeable men and women to cultivate intended . any _ in economics a person american journal of business management, economics and banking volume 13 june, 2023 p a g e | 112 www.americanjournal.org resources development for in charge that account if we can , to education investment input a person capital to form investment input with is equal to to education investment input a lot in forms to be possible , that's it including business initiative as schools organize reach and manage and physical of individuals the work with supply prospects and income get opportunities increase for any _ certain kind of to education have to be government , as well as national development for important calculated a person of capital certain type to develop investment input can _ literature review investment in the field of science attraction being carried out investments on the subject books not so much a lot not _ however some one of scientists houghts and their research analysis by doing by learning exit important and important. in our country our economists karlibayeva raya khojabaevna his " investments organize reach and financing " in the book " intellectual investment personnel preparation, scientific inspection, education and another in appearance intellectual to potentials investors to put all kind of are riches . work science of release and technique effect getting stronger to go with intellectual of investments importance more increased will go _ those who passed intellectual of property development country development main important unit is counted. in the country how a lot scientific activity busy with and potential personnel share high if that's all intellectual there is also a lot of property will be with that together in our article many içojodchi of scientists thought and from the comments we used in particular i. s. tukhliev, m. e. polatov , j. r. zaynalov, m. m. muhammedov , d. x. aslanova such as of economists scientific from work was used . research methodology in research information collection, analysis to do and methods used. data analysis and synthesis do, scientific abstraction, economic and mathematician modeling methods used without theoretical descriptions work developed _ analysis and results the majority education our future for the most strong investment to recognize as agree will be studies that's it shows that education people in his life constant to changes take coming possible and this not only people for maybe _ countries is also useful for to education investment input not only right step , maybe this smart economy 1. of the country of the next 50 years life present is studying a day and growing up coming out of personnel potential part _ in the country training in the field to be done reforms of the country the future for being done is a reform let's say not mistaken we will be current in the hun abilities known in the country field and busy on the net that's it field or network for , of the field development for service does _ that's why we are talim our industry by developing our people potential if we increase all field and of networks in dependence development provided we will be in the country state education institutions and private education institutions number increase they are in the middle competition environment forming education of quality to improve take will come that's why on the network competition environment formation education institutions in the middle student and students to themselves attraction reach about they compete . 1https://hospitalityinsights.ehl.edu american journal of business management, economics and banking volume 13 june, 2023 p a g e | 113 www.americanjournal.org in the country efficient staff form take to go for many cases to ensure necessary _ in the country my training by developing qualified personnel preparation the following necessary a must conditions through more as a topical issue puts : in the country social the field development; in the country available the work instead of competition durable staff delivered to give jahan is a worker power in the market competitive personnel delivered to give and integration in the process to advantage have to be country development and to development to reach prospects provide for _ in the country training system of the world developed countries training to the system rotate for . of the country main from problems one this population social protection to do is counted . of the population less provided part market economy in the system to the defense needs is counted . market of the economy main disadvantages one of the population stratification is counted . of this eliminate of reaching main from the roads one this of the population main part education with cover get is counted . to education have has been people life forgiveness and good to live according to skill and skills formed will be and this condition their poor being to stay probability reduces _ that's why state in the budget from funds big part education to the field investment to do to the goal according to will be each _ in the country available work release and service show in the field many workers activity walks _ this area and of the network development in the field activity walking of employees qualification and the work to the experience depend _ staff qualification increase and them competent frame by doing bring up country in front of important from issues one is counted . in the country this things done increase and them in practice apply for different kind of business centers and start ups organization matured many to young people occupation from secrets lessons giving is going state this about their work done increase and such projects done increase for state investments attraction reach and them right orientation it is necessary current in the day developed countries economy work release and service show fields organize is doing and this that's it of workers employed in the field potential depends developed countries of workers employed in the industry authority very high is counted . them teaching and qualification increase development according to many affairs done is increasing. in countries work release and service show in the fields high the work of the right to be given of workers that's it to the field more attempt and that's it to the field work want increases . of this as a result countries between migration relations is formed and development finds _ of this positive side in the country available worker to the power request has been to areas of workers from abroad come their performance and this spend expenses to decrease take will come with that together negative sides are also available this love between difference because of smart of workers from the country out to go take will come and this in the country potential personnel decreased to go take will come that's why state workers qualification increase and them occupation qualifications shaping according to internal and foreign investments active attraction reach and the field development it is necessary with that together countries organize being carried out international joint enterprises and in organizations working employees number increase that's it the country of workers potential to increase take will come country main budget funds training to the field to spend and that's it with together foreign investments attraction reached education to the system spend to do of the country issicadi and political potential development big effect shows. with that together training in the system foreign technology and american journal of business management, economics and banking volume 13 june, 2023 p a g e | 114 www.americanjournal.org techniques apply and education in the system foreign of states advanced education institutions with integration connections provision is important indicator and qualifications foreign education from the gallows learning opportunity means _ conclusions and offers: summary in place telling transition should be training to the system being done investment suddenly himself the result does not give however of the country upcoming in his life of the country development and progressive when it comes important importance occupation is enough with that together of the population marriage well-being increase and poverty shorten according to the most efficient from solutions one is counted . to education done investment the following cases his own the effect that he gave let's see possible: in the country poor and social to the defense needs population number decreased on the way economical of fields growth and the work efficiency significant level in the increase; of the country education system, training to their countries, khatiji countries and organizations by interest to be notified and they are with cooperation contracts to compose has been of demand in the increase . in the country industry and service show of the fields progressive reach and on the rise. country of students foreign competition and in contests occupying of seats getting better on the way and that's it with together many so indicators counting transition can _ of these all of it training to the field being done of investments how much important that it is proof gives _ used literatures 1. karlibayeva rx investments organize reach and financing cholpon tashkent 2011. 2. rashidov o.yu ., karlibaeva rx, « investment projects financing » t.: tdiu, 2005. mukhammedov m.m., urunbaeva yu.p. " the population marriage level formation factors and increase perspectives » // treatise . samarkand : zarafshan , 2010. 56 pages . 3. urunbaeva yu.p. population employment service show of the field influence // « economy and education » scientific magazine // #6. 2016. pages 75-78 . (08.00.00; #11). american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 119 www.americanjournal.org modern marketing in the context of the digital economy: analysis of concepts shokhista akhunova phd, docent, fergana polytechnic institute, fergana, republic of uzbekistan email: sh.axunova@ferpi.uz mekhri-bonu urinboeva master's student, fergana polytechnic institute, fergana, republic of uzbekistan a b s t r a c t k e y w o r d s in the article, the concepts of digitization of the economy and digital transformation of the economy are conceptually analyzed. the interrelationship and interdependence of these definitions are examined. the features of the digital transformation of the economy were analyzed and its main advantages were highlighted. the role of marketing in the digital transformation of the economy was studied. in the conditions of digital transformation, the analysis of the main factors of the marketing environment was carried out, and the factors of the formation of a fundamentally new environment were determined. changes in marketing concepts used in the modern economy are studied. in the context of the digital transformation of the economy, new marketing concepts are proposed. engagement marketing, personalized marketing, retrospective marketing. as a reaction to changes in the external environment and the economy as a whole, a proportion of new concepts of marketing are implemented. economic development, digital transformation of the economy, engagement marketing, digital marketing, personalized marketing. introduction digital transformation is one of the main trends of economic development in the modern world. the changes to which all areas of human activity are subject are an objective response to the changed conditions of the economy. the pandemic and the spread of covid-19 have played a decisive role in changing environmental conditions. due to the transition of the main part of society's life to the online mode, changes have occurred in people's minds, the fear of using digital platforms and online stores has decreased, and the share of using electronic payments has increased. digitization of the economy is the current stage of scientific and technical development, which consists in introducing certain types of innovations into real economic practice [1-4]. any asset in use can be digitized. the existence of digital analogues implies a lack of uniqueness and therefore a competitive advantage. the formation of product value takes place in the intangible sphere. information exchange and information itself act as a commodity. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 120 www.americanjournal.org the main part the 21st century, which is experiencing the process of digitization, requires the introduction of a digital environment into every social interaction. it would not be wrong to say that the digital economy, which is equally interesting for all of us, is one step ahead of all industries in this period. a prosperous life for every state and society is ensured, first of all, through a strong economy. and digital business, its main driving force, is an area that needs more attention than ever [5-9]. in fact, it is natural for this industry to flourish in any country where there are sufficient development foundations for entrepreneurship. moreover, in this regard, a feeling of confidence and interest arises among the people. the result of the first steps taken in this regard in our country encourages further development. to date, considerable work has been carried out in the field of economy, including entrepreneurship, which is one of the main participating sectors of the digitization process. so, what is the digital economy, that is, digital marketing, and how did it come about, what prospects does humanity expect from it? as technology continues to grow and evolve, it's safe to assume that digital marketing will follow suit. digital marketing is the development of the digital economy, and the digital economy is the main "driver" for the development of the countries of the world today. nowadays, almost all peoples of the world are directly or indirectly using digital technologies. according to experts, this figure has increased rapidly in the next few years. the web has provided endless opportunities for small and medium-sized businesses, including digital advertising, which has become an important part of their overall advertising efforts [10-17]. digital marketing is the marketing of products or services using digital technologies, mainly on the internet, including mobile devices, advertising and any other digital medium. the development of digital marketing since the 1990s and 2000s has changed the way brands and businesses use technology for marketing. as digital platforms are increasingly incorporated into marketing plans and daily life, and as people use digital devices instead of visiting physical stores, digital marketing companies have proliferated. in particular, we can witness the launch of similar internet markets and digital services in our country, including express.uz, zoodmall.uz, yandex taxi.uz, my taxi.uz and others [14-19]. according to forbes, the official advertising e-source, the focus on integrated global marketing will increase, consumers will be able to connect between multiple content sources such as email on different aspects of the same topic, companies will be able to share information and the use of in-depth analysis will increase [20-24]. currently, at the modern stage of digital economy development, uzbekistan is characterized by the period of its formation and high dynamics of development. taking into account the current world trends, the rapid use of ict in all spheres of public life, as well as the general development of digital technologies, will become the driving force of innovation for uzbekistan and enable integration and integration into the world economy. as in many countries, these scientific studies are relevant to our republic. studying and analyzing the specific aspects of the development of the digital economy in uzbekistan, as well as identifying the main problems of modern ict implementation in enterprises [25-27]. to succeed, tomorrow's digital marketing companies will need a workforce with the education and skills to meet these future challenges and stay at the forefront of the industry. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 121 www.americanjournal.org digital marketing includes all marketing activities that use an electronic device or the internet. businesses use digital channels such as search engines, social media, email and other websites to connect with current and prospective customers. conclusion digital marketing can help us reach a larger audience than traditional methods and target prospects who are more likely to buy our product or service. in addition, it is often more cost-effective than traditional advertising, allowing us to summarize the success daily and move it in the way we want. in conclusion, we can say that the rapid growth of digitalization will bring about a huge change in reality and positive results in the near future. in particular, the effect and change on the economy will be significant, and this will create a unique positive outcome of the expected future. we need to support this direction and be a direct participant in the process or some sense a catalyst for it. references 1. butaboev, m., & akhunova, s. (2023). uzbekistan's transition strategy to a" green" economy and its significance. resmilitaris, 13(1), 1840-1851. 2. akxunova, s. n. (2022). methods of evaluating the economic efficiency of the introduction of the environmental management system in enterprises. academicia: an international multidisciplinary research journal, 12(11), 172-175. 3. kurpayanidi, k., nabiyeva, n., akhunova, s., & tukhtasinova, m. (2021). analysis of the state's macroeconomic policy. revista geintec-gestao inovacao e tecnologias, 11(4), 4669-4680. 4. axunova, s. n. (2021). small business in the digital economy and its security. theoretical & applied science, (1), 347-349. 5. axunova, s. n. (2021). innovative technologies in the digital economy. theoretical & applied science, (1), 290-292. 6. ахунова, ш. (2021). эволюционная структура и функции конкуренции. общество и инновации, 2(2), 87-92. 7. namanzhanovna, a. s., & shokhsanam, t. (2021). global trends and prospects for the development of the innovation economy in uzbekistan. european scholar journal (esj), 288-290 8. namanzhanovna, a. s., & shokhsanam, t. (2021). financial innovation in the digital economy. international journal on orange technologies, 3(5), 174-176. 9. абдуллаева, б. ю. (2021). инновационные решения для эффективного разрешения конфликтов в вузах. central asian journal of innovations on tourism management and finance, 2(11), 64-70. 10. muminova, e., honkeldiyeva, g., kurpayanidi, k., akhunova, s., & hamdamova, s. (2020). features of introducing blockchain technology in digital economy developing conditions in uzbekistan. in e3s web of conferences (vol. 159, p. 04023). edp sciences. 11. qosimov, l. m., qosimova, s. f., & tursunov, q. q. (2020). specific aspects of using ferghana region's pilgrims for touristic purposes. academic research in educational sciences, (3), 723-729. 12. axunova, s. n. (2020). digital transformation of economic systems producing international business investment activity. theoretical & applied science, (5), 773-776. 13. adxamovna, b. g. (2022). characteristics and development trends of the world food market. world bulletin of management and law, 15, 86-90. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 122 www.americanjournal.org 14. abdullayeva, b. y. (2022). повышение эффективности инновационных процессов на предприятиях текстильной промышленности. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(4), 107-115. 15. ахунова, ш. н. (2020). улучшение экономических механизмов инвестиционной стратегии регионов. in минтақа иқтисодиётини инвестициялашнинг молиявий-ҳуқуқий ва инновацион жиҳатлари (pp. 178-183). 16. ахунова, ш. н. (2020). экобизнес. экономика и социум, (2), 104-107. 17. adxamovna, b. g. (2022). improving the organizational and economic mechanism of management of food industry enterprises. conferencea, 71-75. 18. ахунова, ш. н., & абдуллаева, б. (2015). динамика и перспективы развития частного предпринимательства в узбекистане. журнал научных публикаций аспирантов и докторантов, (5), 23-25. 19. adxamovna, b. g. (2021). directions for improving the organizational and economic mechanism of food industry management in the digital economy. central asian journal of innovations on tourism management and finance, 2(12), 16-21. 20. ахунова, ш. н. (2015). к проблемам оптимизации налоговой нагрузки субъектов предпринимательства. молодой ученый, (2), 246-248. 21. турсунбоева, м. а. (2023). проблемы формирования профессиональной коммуникативной компетенции студентов нефилологического факультета на иностранном языке. periodica journal of modern philosophy, social sciences and humanities, 14, 29-31. 22. adxamovna, b. g. (2022). improving food safety mechanisms in uzbekistan. world economics and finance bulletin, 15, 135-139. 23. кундузова, к. и., & ахунова, ш. н. (2019). пути развития дехканских хозяйств и повышения их эффективности. известия ошского технологического университета, (3), 273-277. 24. ахунова, ш. н., & аширалиев, ф. (2015). к вопросам развития строительной индустрии в сельской местности узбекистана. молодой ученый, (6), 375-377. 25. байкузиева, г. а. (2019). содержание и особенности структуры сельского хозяйства в регионах в условиях модернизации экономики. проблемы современной науки и образования, (12-2 (145)), 102-105. 26. kosimova, s. h., & kosimov, l. m. (2020). principles of forming a garden-park landscape design around historical monuments of the fergana valley. academicia: an international multidisciplinary research journal, 10(6), 1582-1589. 27. ахунова, ш. н., & толибов, и. ш. у. (2019). к проблеме повышения эффективности привлечения инвестиций в экономику узбекистана. достижения науки и образования, (7 (48)), 18-22. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 54 www.americanjournal.org innovation technologies and methods in teaching english in technical institutions ermatova yulduzxon alisher qizi department of foreign languages, intern teacher namangan engineering – construction institute, email: yulduzermatova5929@gmail.com a b s t r a c t k e y w o r d s the article emphasizes the use of contemporary teaching technologies in the learning process, emphasizing in particular the use of interactive teaching strategies and cutting-edge educational tools in the instruction of foreign languages. people need to use international languages in areas such as trade, tourism, international relations between governments, technology, science and media. therefore, many countries such as japan, finland and china frame education policies to teach at least one foreign language at primary and secondary school level. innovation technology, teaching methods, modern teaching, learning process, foreign language, teaching strategy, involvement. a foreign language is now more important for students' future success than just as a way to immerse themselves in a country's culture. without foundational language instruction in higher education, it is hard to reach a high degree of competency in a foreign language. connections between countries, states, organizations, and nations have become inevitable during the past 20 years, which has increased the demand for multilingualism and the knowledge of additional languages. in fields including trade, tourism, international government relations, technology, science, and the media, people must speak other languages. as a result, many nations, like china, japan, and finland, construct their educational systems to mandate the teaching of at least one foreign language at the basic and secondary school levels.[8] a teaching strategy compares the ideologies and strategies employed in instruction. class involvement, demonstration, recitation, or mixtures of these are often utilized teaching techniques. the knowledge or skill being taught determines the right teaching style in major part, but student aptitude and excitement may also play a role. a teacher needs to use a good method for their lessons to be effective. the instructor can create their own lesson plans, use others', look for lesson plans online or in books, or borrow lesson plans from other teachers. a teacher must take into account the "background knowledge" of the pupils, the setting, and the learning objectives while choosing their teaching strategies. although almost all pupils learn differently, teachers are aware of this.[7] students that use the bingo method go around looking for items. the approach encourages kids to learn in an engaging and enjoyable way. each student receives a copy of the bingo sheet that the teacher has created. there is a word or image in each grid box. finding the predetermined amount of words or mailto:yulduzermatova5929@gmail.com american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 55 www.americanjournal.org images—such as a tree, car, sign —is the student's duty. if the students could find at least some of the stuff they need outside, that would be fantastic. the bingo approach is a beneficial outdoor workout. a pupil receives a bingo if they find 5 items in a row on the grid. the items in the grid can be arranged in any way to get a bingo.[6] communicative method learning goal: developing communication skills. learning objectives: conflicts in the readings should inspire students to voice their own viewpoints. training is controlled by communication intentions rather than grammar (intentions). the focus of learning is on the pupil. language plane: the predominance of linguistic creation over grammatical accuracy, correctness, and errors. language turns becomes a tool for communication. exercises: exercises that focus on communication. students pick up communication skills through actual communication. in order to communicate effectively, each exercise and task must be justified by a lack of knowledge, option, or response.[5] constructivist method learning objective: the method is based on the actual active student learning. the task of the teacher is not to teach, but to contribute to the learning process. the lesson is action oriented. educational content: proximity to reality of students, students are encouraged to independently construct their knowledge (for example, in the framework of project activities). language plane: as wide as possible. exercises: language production is at the heart of learning.[4] the method's benefits include preparing pupils for scenarios they may encounter in real life. the method's drawbacks have not yet been fully revealed at this point. project training is an illustration of a constructivist methodology. the approach distinguishes between conventional and unconventional teaching strategies. the term "alternative ways" refers to a variety of approaches, tactics, and language transmission systems.[9] there are substitute techniques as the total physical response technique, suggestive technique, dramatic-pedagogical technique, quiet technique, and group technique. innovative methods of instruction include computer-assisted training, storylines, simulations, carousels, station-based learning, group puzzles, role-playing, and case studies (work on problem situations, students review the problem, analyze the situation, and present their ideas and solutions to the problem).[3] script method (story line method). this method is based on a combination of planned learning meanings — for example, shopping-goods-sales — with the interests and ideas of students. by receiving "impulses" from the teacher (the so-called key questions), students make their contribution to the creation of history. this method does without textbooks. it is about creative planning, hypothesis selection, experiences, systematization and presentation of work. the designed story also contains elements from drama and roleplaying. the teacher sets the framework for action and presents individual episodes. pupils put their questions and find answers to them themselves.[2] the following basic phases of the project are traditionally distinguished: 1. initiating invention of the idea for the project 2.start of the project 3.project management 4.presentation of project results american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 56 www.americanjournal.org 5. evaluation (reflection) of the project the method of learning stations. training equipment in which students perform work on educational material, which is ordered in the form of stations (students receive work plans with mandatory and selective tasks). when learning by station, students have a choice of timing, task sequence, and social form used (individual work, pair work, group work). thus, students using this method learn to plan their time, learn self-assessment, analyze their own educational success, plan and conduct work stages. work on the stations allows differentiation according to the abilities, interests of students, and the degree of difficulty of the task.[1] simulation method. especially in the teaching of a foreign language to students of economic specialties of universities, one can successfully apply the method of simulations. in cybernetics, this term is used to model and simulate reality. the training deals with various simulation business games that provide students with the opportunity to develop their skills, apply knowledge to solve a particular problem in the so-called “safe environment” that imitates real situations, for example, in business, in work in a company.[10] the simulation provides an opportunity for students to try themselves in a certain role the head, the president of the company, gives the opportunity to explore the system of work of this enterprise. the participants in the game are given certain tasks to achieve a profit growth of the company, to conclude an agreement, to sell the company's shares, and so on. simulations are characterized by a high degree of interest of the participants, the game is completely immersed, embodied in its role, and is sick of the result of the work, because the overall result of the game depends on the team spirit and speed of decision making. [15] thanks to the simulation, the skills of strategic planning of students are formed, the ability to work in a team, to negotiate, to convince a business partner is developed. simulations streamline students' knowledge, prepare them for the need to make quick and motivated business decisions in their future activities. there are computer simulations, where participants work with a computer program, manage an imaginary company, and desktop simulations, where participants, companies, enterprises “exist” in the form of chips, maps.[11] conclusion role-playing is an interactive learning strategy that helps students improve their communication abilities. the role-playing game is connected to students' interests and serves as a tool for emotional engagement and the motivation of learning activities. role-playing is an active approach of gaining practical knowledge of a foreign language.[12] the quantity of speaking practice kids receive through roleplaying games grows dramatically, assisting them in overcoming their language hurdles. learning is happening right now. in foreign language lessons, role-playing can take many different shapes and forms. use the role-playing game "at the interview," for instance, in which pupils assume the roles of an employer and an employee. from everything said above, it follows that teachers nowadays need to always strive to get better.[14] references 1. saidaliyev, s. (2004). essays on methods of teaching foreign languages. 2. саидалиев, с. (2004). чет тили ўқитиш методикасидан очерклар. 3. saydaliyev, s. (2022). selecting words for german language teaching. https://scholar.google.com/scholar?oi=bibs&cluster=5479715725988437814&btni=1&hl=ru american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 57 www.americanjournal.org 4. saidaliyev, s., mamatova, н. (2022). use of the scientific and creative heritage of eastern thinkers for educational purposes. 5. botirova, z. x. q. (2020). the importance of age factors on teaching english in grades 56. scientific bulletin of namangan state university, 2(11), 381-384. 6. botirova, z. h. k. (2020). developing of lexical skills in english in secondary schools. scientific bulletin of namangan state university, 2(1), 199-203. 7. sadikov, z. (2021). kutadgu bilig” and “temur tuzuklari. world bulletin of social sciences, 5, 40-41. 8. sadikov, z. (2022). o‘zgalar baxtini o‘z baxtidan ustun bilgan inson. oriental renaissance: innovative, educational, natural and social sciences, 2, 20-27. 9. sadikov, z. (2012). about some translational problems of poetic figure “kutadgu bilig”(wisdom of royal glory). beiträge zur entwicklung in usbekistan und china: wissenschaftliche schriftenreihe: band 5, 5, 117-118. 10. botirova p. modern methods of teaching foreign languages //теория и практика современной науки. – 2019. – №. 2. – с. 25-27. 11. nargiza, d., & palina, b. (2019). features of the english translation of russian-speaking realities in the texts of fiction novels. academicia: an international multidisciplinary research journal, 9(4), 117-121. 12. botirova, p. (2019). modern problems of linguistics and methods of teaching english language. теория и практика современной науки, (2), 28-31. 13. khakimjonovna, b. p. (2021). methodology of student coherent speech development in the process of english language learning. middle european scientific bulletin, 9. 14. khakimjonovna, b. p. (2022). descriptive coherent speech and its types. berlin studies transnational journal of science and humanities, 2(1.5 pedagogical sciences). 15. botirova, p. k. (2021). the development of coherent speech students of technical institutions in english lesson. in технические науки: проблемы и решения (pp. 101-105). 16. botirova, p. k. (2021). the problem of formation of a coherent speech of students in english lessons. in технические науки: проблемы и решения (pp. 105-109). 17. botirova, p. h., inomiddinova, d. i., & sobirova, r. m. (2019). methodological recommendations for using the method of work in small groups. international journal of advanced science and technology, 28(12), 385-389. https://cyberleninka.ru/article/n/o-zgalar-baxtini-o-z-baxtidan-ustun-bilgan-inson https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=4_znsi4aaaaj&citation_for_view=4_znsi4aaaaj:d1gkvwhdpl0c https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=4_znsi4aaaaj&citation_for_view=4_znsi4aaaaj:d1gkvwhdpl0c american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 144 www.americanjournal.org theoretical aspects of investment attractiveness ochilov bobur bakhtiyor o‘g‘li senior teacher, department “valuation and investments”, tashkent institute of finance, tashkent city, uzbekistan. e-mail: ochilov696@mail.ru a b s t r a c t k e y w o r d s the article creating a positive investment climate should not be interpreted as a key process in the globalization of the economy, and as a result, the expansion of access to investment resources, which in turn will increase competition among investors. if we want to increase the volume of foreign investment, it is necessary to increase the investment potential of enterprises, regional conditions and conditions to a more acceptable and higher level than others (competitors), as well as to stimulate domestic (national) investment. we need to focus on ensuring that it is holistic. enterprise risk, investment potential of the enterprise, investment climate, innovation in enterprises, small business entities, investment process. introduction based on today’s economic factors, we can say that investments are a significant driver of the country’s economy. in the economic arsenal of each country, the main goal is to apply various financial mechanisms related to attracting foreign investments, to work in the position of a recipient and to create regional investment attractiveness. also, enough reforms are being implemented in our country to actively attract investments. the more favorable the investment climate, the lower the entrepreneurial risk of the investor, and this will increase the influx of investors. conversely, the more unfavorable the investment climate, the higher the risk. this will increase the cost to the recipient of the investment. the state of the investment environment is important not only for the investor but also for the investor [1]. a number of such cases require a series of measures to improve the existing mechanism for attracting foreign investment to the country’s economy and increase its efficiency in ensuring the competitiveness of national enterprises. in turn, the process of ensuring the competitiveness of national enterprises by attracting foreign investment in the country’s economy is multifactorial integration. therefore, a methodological approach to indicators that assess the competitiveness of the national economy is required in this regard. the analysis of the socio-economic changes taking place in our country shows that the modernization of the economy and the role of active investment policy are very important in the achievements and successes. accordingly, it is important to create an effective system of enterprises, to study the mailto:ochilov696@mail.ru american journal of business management, economics and banking volume 10 march, 2023 p a g e | 145 www.americanjournal.org theoretical and methodological basis for assessing the attractiveness of their investment climate and potential. 2. literature review the investment attractiveness of enterprises depends on the country’s investment policy and the created investment climate. in particular, the investment climate is considered as a system of three elements: investment potential, investment risk and legal conditions [2]. considering the factors influencing the formation of a favorable investment climate in the country/region, it should be noted that it is important for the country to be integrated in the world community in terms of investment attractiveness. the strategy of increasing the country’s investment prestige is important for attracting foreign direct investment [3]. interpretation of “investment potential” as a set of investment resources, consisting of part of the accumulated capital, expressed in the form of investment demand in the investment market, which has the potential to become a real investment demand that meets the material, financial and intellectual needs of capital reproduction reaches [4]. the attractiveness of the investment climate, the economic development of each region depends on the potential of capital and labor resources, the level of their use. it is generally accepted that the economic potential of a region and its potential is determined by the production of vital goods through the efficient use of all the complex resources available there [5]. determining the ratio between dividends and reinvestment in a country’s dividend policy, protecting the rights of minority shareholders, increasing share prices, and expanding business activities can increase a company’s investment attractiveness, which has a positive impact on the country’s investment attractiveness [6]. regardless of the field in which joint-stock companies operate in the country, one of the important tasks is to place additional financial resources, including attracting foreign investment. one of the most modern ways to attract investment in joint-stock companies is to use the ipo mechanism [7]. thus, the investment gives the company a competitive advantage and often serve as the most powerful means of growth. it is extremely important for investors is the analysis and evaluation of investment attractiveness of the enterprise as it gives an opportunity to minimize the risk of incorrect investment [8]. 3. research methodology the role of foreign investment in ensuring the competitiveness of enterprises, the classification of risks affecting the activities of the enterprise, as well as scientific proposals and practical recommendations for improvement through the methods of systematic analysis were formed. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 146 www.americanjournal.org 4. analysis and discussion of results. there are three major areas of investment, which are reflected in the figure below (figure 1). figure 1. classification of the country’s investment sector [9] in the picture above, we can see that these directions are of great importance in the countries receiving investments. they are investment climate, investment attractiveness and investment potential. the segments included in the directions are the parts of the operative attraction of direct investments. there are also networks formed under the influence of segments, which contribute comprehensively to the increase of investments from the state and regional point of view. in addition, the most important thing is that foreign investors bring with them not only capital, but also the advanced knowledge and experience of their countries. this will allow the future economic growth of the country. the fact that the republic of uzbekistan is developing socio-economically and becoming one of the globally competitive countries is inextricably linked with the investment policy aimed at increasing the investment attractiveness of the country, the region and its economic sectors, as well as individual enterprises. factors indicating the investment attractiveness of regions were grouped and brought into a single system. as the main groups, the points of view and scientific-practical views representing the socioeconomic potential reflecting the complex indicators of the region are summarized and classified. in the picture below, we can see that the investment attraction potential of the republic of uzbekistan (by region), the number of contracts, and the investment funds involved are reflected (figure 2). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 147 www.americanjournal.org figure 2. promotion by share size ownership structure, bln. sum (as of 31.03.2023) [10] as you can see in the picture above, the number of foreign shareholders in the stock market of uzbekistan in 2022 reached 3321, of which 328 are legal entities and 2993 are individuals. it is obvious that as a result of foreign investment in the stock market of uzbekistan, along with the direct increase in the volume of production of enterprises, the share price of the enterprise in the secondary market will increase significantly. the socio-economic development of the republic of uzbekistan and its becoming one of the most competitive countries in the world is closely linked with the investment policy of the country, the region and its economic sectors, as well as the investment attractiveness of individual enterprises. table 1 rating of innovative activities of developed countries of 2021 [11] n. countries innovation inputs innovation outputs knowledge creation investment production and export complexity 1. germany 14 9 5 60 4 2. china 25 7 4 2 1 3. usa 3 4 3 1 2 4. italy 33 25 7 9 15 5. india 57 45 13 32 18 the table above shows the ranking of germany, china, the united states, italy and india in terms of innovation potential, while the united states ranks 4th in terms of innovation results. the u.s. states are directly in 3rd place. america is also at the forefront of investment inflows and outflows. in terms american journal of business management, economics and banking volume 10 march, 2023 p a g e | 148 www.americanjournal.org of export potential, china ranks 1st, and 4th in terms of creating new knowledge, intangible assets and inventions. the second global issue is the disclosure of information about securities and their issuers. today this issue is one of the most complex issues in the stock market. raising funds for economic development through the issuance and sale of shares is an important condition. who are the founders of the jointstock company, the specialty of the issuer, what products it produces, its working capital, income, profits, relationships with creditors? and finally, most importantly, the company must have the latest information on what dividends it has paid in previous years. it can be seen from this that realizing the importance of the role of foreign direct investments in increasing the investment attractiveness of our country, a number of activities are being carried out to attract these investments. attracting foreign direct investments and their full utilization will serve to increase the employment and standard of living of the population in the country, improve the income of the population, and increase the investment attractiveness of our country in the international arena. 5. conclusions and suggestions summarizing the above-mentioned analysis and considerations, it should be noted that in the context of increasing modernization processes, it is appropriate for the state’s mediumand long-term investment strategy to focus on solving the following tasks: 1. development of models for effective use of economic resources and optimal use of economic resources based on the law of finite diminishment of capital resources in increasing regional wealth [12]; 2. to ensure the steady development of the regions and to develop comprehensive programs that serve their uniform development without large differences and take measures to implement them [13]; 3. creating a favorable business environment that serves to organize joint projects based on high technologies and creating high added value [14]; 4. in order to maintain high and stable rates of economic growth, it is necessary to form a stable and competitive model of the country’s economy, in which most of the assets of the banking system are in the hands of private investors [15]; 5. in order to increase investment attractiveness and ensure rapid growth of investments in infrastructure, which is one of the main factors of sustainable economic growth, it is necessary to stimulate investment activity by developing public-private partnerships and project financing tools [16]; based on the scientific proposals and recommendations presented above, their deep study, analysis and practical implementation will give results in the near future [17]. also, by creating a favorable investment environment in the country, it has a positive effect on further increasing the investment attractiveness of the state [18]. 6. literatura/reference: 1. elvira sojli, wing wah tham. “the impact of foreign government investments: sovereign wealth fund investments in the united states” in institutional investors in global capital markets. published online: 8 march 2015; 207-243. www.scopus.com 2. takhumova oksana v., kasatkina elena v., maslihova elena a, alexey v.yumashev, maria v.yumasheva. the main directions of increasing the investment attractiveness of the russian regions http://www.scopus.com/ american journal of business management, economics and banking volume 10 march, 2023 p a g e | 149 www.americanjournal.org in the conditions of institutional transformations. // revista espacios, vol. 39 (number 37) 2018. – p.12; 3. smaglyukova t. m. general approaches to the formation of regional investment policy // modern problems of science. 2014. no. 1. 4. tumusov f.s. investment potential of the region: theory, problems, practice. m., “economics”, 1999. 272-page. 5. akerman ye.n., mixalchuk a. a., trifanov a. yu. typology of regions as a tool for co-organization of regional development // bulletin of the tomsk state university. un-a. economy. no. 331. 126–131p. 6. s. elmirzayev. dividend policy analysis and dividend aristocrats in developed countries.// scientific-electronic journal “international finance and accounting”, nu.2, 2020. – p.11; https://uzjournals.edu.uz/interfinance 7. a. shomirov. “the role of ipo mechanisms in attracting investments to joint stock companies: necessity and prospects”, “interfinance”: vol. 2021: iss. 1, article 19. https://uzjournals.edu.uz/interfinance/vol2021/iss1/19 8. akhmetshin e. m. et al. management of investment attractiveness of enterprises: principles, methods, organization //international journal of applied business and economic research. – 2017. – т. 15. – №. 23. – с. 71-82. 9. independently prepared by the author with the help of literature on the field of investment. 10. prepared by the author on the basis of the official website of the central securities depository – www.deponet.uz 11. the global innovation index is based on the official website of the author – www.globalinnovationindex.org 12. bakhtiyarovich o. b. investment activities and performance of gigamon companies around the world //czech journal of multidisciplinary innovations. – 2022. – т. 6. – с. 1-6. 13. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. 14. inatillo o‘g‘li b. j., fatikhovna g. u. actual analysis of uzbekistan’s stock market: problem, solution and suggestions //american journal of business management, economics and banking. – 2023. – т. 10. – с. 53-59. 15. inatillo o‘g‘li b. j. actual analysis of uzbekistan’s stock market: problem, solution and suggestions //american journal of business management, economics and banking. – 2023. – т. 10. – с. 53-59. 16. inatillo o‘g‘li b. j. actual analysis of uzbekistan’s stock market: problem, solution and suggestions //american journal of business management, economics and banking. – 2023. – т. 10. – с. 53-59. 17. inatillo o‘g‘li b. j., fatikhovna g. u. actual analysis of uzbekistan’s stock market: problem, solution and suggestions //american journal of business management, economics and banking. – 2023. – т. 10. – с. 53-59. 18. butaev j., radjabov u. the tax system as a structural link of the financial system //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 4. – с. 1770-1780. https://uzjournals.edu.uz/interfinance https://uzjournals.edu.uz/interfinance/vol2021/iss1/19 http://www.deponet.uz/ http://www.globalinnovationindex.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 7 www.americanjournal.org use of interactive forms and methods in learning содиқов н. о. the republic of uzbekistan samarkand state medical university a b s t r a c t k e y w o r d s the peculiarities of the interactive forms and methods in teaching medical university and institute biophysics are touched upon in the article as the most modern and innovative. some examples of the forms are shown in the article for practical usage in teaching. в статье рассматриваются особенности преподавания предмет биофизики в медицинских университетах и институтах при помощи интерактивных форм и методов обучения, как наиболее актуальные на современном этапе преподавания. рассматриваются некоторые формы и приводятся приемы обучения для практического внедрения их в учебный процесс. teaching; interaction; innovations биофизика; обучение; интеракция; инновационные технологии biofizika; the broadest concept, including everything that surrounds us and ourselves, is matter. it is impossible to give an ordinary logical definition of matter, in which a broader concept is indicated, and then a sign of the subject of the definition is noted, since there is no wider concept than matter. therefore, instead of a definition, it is often simply said that matter is an objective reality given to us in sensations. matter does not exist without movement. motion is understood as all processes occurring in the universe. conditionally different and diverse forms of movement can be represented by four types: physical, chemical, biological and social. this allows you to classify different sciences depending on what kind of movement they study. physics studies the physical form of motion of matter. various forms of the motion of matter are interdependent and interrelated, which leads to the emergence of new sciences lying at the junction of the former ones biophysics, chemical physics, astrophysics and others, as well as the use of the achievements of one science for the development of another. but, unfortunately, often our teaching methods are very inert, do not meet modern requirements. modern methods of teaching biophysics in medical schools offer us a wide range of teaching concepts, methods and technologies both traditional and innovative. relevance: in a more modern society, the active method of teaching biophysics prevails. but still, a more advanced method is interactive. it contributes to the development of communication skills as much as possible, which is the goal in itself of teaching biophysics. the article offers information about this method. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 8 www.americanjournal.org the purpose of this article is to draw the attention of teachers to more advanced and relevant methods of teaching biophysics, to acquaint them with the forms and methods of this method in order to optimally achieve the communicative goal of teaching. the use of interactive forms and methods in teaching on the subject of biophysics. interactive (“inter” is mutual, “act” is to act) means interaction, conversation, dialogue with someone. interactive initiates a more multifaceted interaction of students, both with the teacher and with each other, in contrast to active methods. the main function of the teacher in interactive classes is to direct the activities of students to achieve the goals of the lesson. the teacher, of course, develops a lesson plan (usually, these are interactive exercises and assignments during which students study the material). therefore, the main components of interactive lessons are interactive exercises and tasks performed by students. the cardinal distinguishing feature of interactive exercises and assignments is that, performing them, students work on the basis of already studied material as much as possible aimed at learning new things. interactive methods make it possible to move away from a monologic learning system to a dialogue, when students not only can freely exchange judgments, their own opinions and assessments of facts, but also have the right to argue with the teacher, defending their point of view, position. interactive works when the teacher does not express ready-made truths, but organizes the search and discussion by students. . “a bad teacher is to present the truth, a good teacher is to teach to find it” (disterverg). the interactive methodology involves the mutual learning of students, which creates a friendly atmosphere of tolerance, security, mutual support, and understanding. this makes it possible to develop cognitive activity itself with the help of high forms of cooperation and cooperation in the process of obtaining new knowledge. the essence of interactive learning is that the learning process involves all students to the maximum in the learning process, so that each participant has the opportunity to understand and reflect on their knowledge and thoughts. hence, a huge role is assigned to the individualization of knowledge of each individual in the joint activity of students in the educational process. interchange of knowledge, thoughts, methods of activity that's what interaction offers. in the classroom, there is also the development of dialogue communication, which leads to mutual understanding, interaction, to the joint solution of common, but individually valuable tasks for each participant. interactive excludes the dominance of both one speaker and one opinion over another. as a result, students learn critical thinking, analysis of circumstances and solving complex problems, weighing alternative opinions, making thoughtful decisions, discussing, communicating with other partners. to do this, individual, pair and group work is organized in the lessons, research projects, roleplaying games are used, work is underway with various information sources, and creative work is used. along with the traditional (work in small groups, in pairs-threes, role-playing or business game) forms of work, interactive methods use such techniques as work in rotational (replaceable) threes, a carousel, an unfinished sentence, an aquarium and others. what are forms of interactive learning? in modern society, methodologists and teachers have developed many forms of group work for teaching biophysics. the most widespread of these are the "outer circle", "small circle", "aquarium", "brainstorming" and "debate" (names may vary, the essence is important). these forms are only effective if the lesson discusses a general problem that students have initial ideas about based on previous lessons and everyday life. in addition, the topics discussed should not be closed or too narrow. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 9 www.americanjournal.org spatial arrangement in the auditorium. • questions in a circle; • small circle (chairs in a circle, students are more prepared); • outer circle (chairs in a circle, students less prepared); • debate; • work in groups; «круг идей» – форма работы, целью которой является resolution of controversial issues. a list of ideas is being drawn up. all students are involved in the discussion of the issue. groups must perform the same task, consisting of several questions (positions), which are given in turn. in the answers, each of the groups voices only one aspect of the problem, and the teacher continues to ask questions in a circle until the ideas run out. thus, the possibility of answers to all questions by one group is excluded. "dialogue" the point is for the groups to find an agreed solution. the result of the work is reflected in the form of a diagram or final text, which is then written down in notebooks. the technique includes criticizing the position of the other group and looking for its strong positions. experts fix their general views, and at the end of the work they give a generalized answer to the task, which everyone writes down. brainstorming is a group method for generating ideas. when conducting brainstorming, you need to proceed from the fact that there are no absurd ideas. on the contrary, it is necessary to get as many such ideas as possible. at the same time, neither ideas nor authors can be evaluated. "brownian motion" students, like molecules, randomly move around the office to collect information on a given topic. "take a position" a statement is declared. students approach the poster with the words "yes" or "no". preferably, they should be able to explain their position. "discussion" educational group discussions are held on the chosen problem in small groups (from 12 to 14 people) students. the educational discussion differs from other discussions in that the problem under discussion is new only for the group of people participating in the discussion, that is, the already known solution to the problem is to be found in the educational process. the search process should lead to knowledge that is objectively known, but new from the point of view of students. debate an example (fragment) of a lesson using such a form of work as a debate target: develop the skills of partnership communication, critical thinking and the ability to interact in a group, tolerance for opposition lesson stages 1. warm up. it is assumed that this is not the first lesson of the cycle on the topic "hemodynamics", i.e. students are already familiar with it. the teacher asks students the question "what is hemodynamics?" students share their opinions. 2. division of students into working groups. groups are created based on the student's opinion, which he expressed earlier: 3. familiarization of students with the technology of debate (it is especially important to clearly explain the rules if this form of work is used for the first time). the teacher should explain the goals and objectives that each group faces. a timekeeper is selected (a person who will follow the rules). timekeeper indicates when there are 3 minutes, 2 minutes, 1 minute, 30 seconds left. a panel of judges is appointed. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 10 www.americanjournal.org 4. the time for each statement is regulated (for example, 5 minutes) and the process of discussion begins, the choice of tactics for conducting debates (if the group is prepared, then mini-debates can begin in 10-15 minutes; then the time for each speaker to speak should be reduced to 2-3 minutes) . in general, the preparation of debates can be carried out within two weeks. form of work in groups "replaceable triplets" the composition of groups (triples) changes during the lesson. "decision tree" the class is divided into several groups with the same number of students. each group discusses the issue, and notes are made on the board (sheet of paper or board). then the groups change places and write their thoughts on the board of the neighbors. "common project" groups receive various tasks that cover the issue from different angles. after the work is completed, reports are prepared and notes are made on the board. from these notes, a general draft is compiled, which is reviewed and supplemented by a group of experts. "synthesis of thoughts" a copy of the previous method with the difference that the students make all the notes on the sheets, which are then passed on to the next group. points that the group does not agree with are underlined on the sheet. experts process the sheets and make a general report, which is then discussed by a full audience of students. "search for information"– the method is used to revive dry and uninteresting material. in this case, there is a team search for information that complements the existing one (lecturer's lecture or homework). subsequently, students answer questions. answers to questions should be found in textbooks or handouts. limited time is given to analyze information and search for answers to questions. заключение: thus, at present, a large number of methods and forms of interactive learning have been developed. but every progressive teacher can come up with his own methods of working with students. most of the listed interactive methods relate to corporate learning technologies, when students come together to complete tasks, master the material and develop communication skills during the discussion and argumentation of their positions. a huge plus of this type of educational activity is that all students of the class are involved in the common work. the difficulty lies in the ability to organize the activity of students, to involve them in this type of work as a permanent one. the methods mentioned in the article can serve as a basis for creating all new forms. the interactive creativity of the teacher and student is limitless, and this is the main advantage of interactive learning. references 1. прохорова м.п., ваганова о.и. участие преподавателей вуза в разработке открытых онлайн-курсов // отечественная и зарубежная педагогика. 2019. т. 1. № 5 (62). с. 90-103. 2. кутепов м.м. дидактические возможности интерактивных электронных образовательных ресурсов // baltichumanitarianjournal. 2020. т. 9. № 3(32). с. 128-130. 3. андриенко о.а. современные образовательные технологии: технология самопрезентации // балканское научно обозрение. 2019. т. 3. № 1 (3). с. 5 4. e.x bozorov. e.j ergashev. oliy ta’lim muassaslarida “rentgen diognostikasi” mavzusini o’qitishda interfaol usullardan foydalanish uslublari. o’zmu xabarlari вестник нууз actanuuz мирзо улуғбек номидаги ўзбекистон миллий университети илмий журнали тошкент – 2022 yil 68-71 betlar american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 11 www.americanjournal.org 5. e.x bozorov. e.j ergashev. yadro texnologiya fanlarini o‘qitishda innovatsiyalar: ijodiy jamoa metodi mutafakkir illmiy jurnali 2-son issn:2181-3310 №1 2may toshkent 2022 y 159-164 betla. 6. вербицкий, а.а. активное обучение в высшей школе: контекстный подход / а.а вербицкий. – м.: просвещение, 2001. – 538 с. 7. газизова, г.м. использование методов интерактивного обучения как фактор успешного овладения студентами профессиональными компетен-циями / г.м. газизова // труды мэли. – 2008. – № 7. – с. 8. иоффе, а.н. активная методика – залог успеха / а.н. иоффе // гражданское образование. материал международного проекта. – спб.: ргпу им. а.и. герцена, 2000. – 382 с. 9. костенко, н.к. оценка уровня физических и эмоциональных нагрузок как негативных факторов для здоровья обучающихся на этапе перехода из средней школы в систему высшего образования: мат. 89-й междунар. научн.-практ. конф. студентов и молодых ученых «теоретические и практические аспекты современной медицины» / н.к. костенко, б.л. бессонов. – симферополь, 2017. – с. 217–219. 10. масалков, и.к. стратегия кейс-стади: методология исследования преподавания: учебник для вузов / и.к. масалков, м.в. семина. – м.: академический проект; альма матер, 2011. – 443 с. 11. ergashev a.j. types of nuclear reactors and methods of teaching their radiation safety on the basis of innovative technologies science and education in karakalpakstan. 2022 №2/2 issn 2181-9203 71-73б 12. пронина, н.в. исследование функционального состояния скелетных мышц методом динамометрии / н.в. пронина // исследование функционального состояния скелетных мышц методом динамометрии: методические указания и задания к лабораторной работе по дисциплине «физика, математика» для студентов медицинских и фармацевтических специальностей. – симферополь, 2016. – 12 с. 13. шодиев н.ш. янги педагогик технологиялар (маърузалар матни). самарқанд, 2010. 14. ўзбекистон республикаси «таълим тўғрисидаги қонун» – тошкент,1997. 15. а.н.ремизов. а.г.максина. а.я. потапенко “медицинская и биологическая физика” 506536 с. 16. в.н. федорова. е.в.фаустов. “медицинская и биологическая физика” 520-571 с. 17. марценюк в.п.. дидух в.д.. ладыкам р.б. баранюк и.а. сверстюк.. сорока и.с. учебник «мидицинская бифизика и медицинская аппаратура» тернополь: укрмедкнтгп. 2008 356 с. 18. кмит я.м. медицинская и биологическая физика: пос. – м.: мир, 2003 136 б https://fayllar.org/va-tamoyillari.html american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 74 www.americanjournal.org importance of innovation factors in sustainable economic development in uzbekistan mamasoliyev khurshidbek saidjon ogli m13-21 group master’s degree student of the department of management, fergana polytechnic institute, fergana, uzbekistan a b s t r a c t k e y w o r d s the article presents the introduction of ict in the economy, the application of innovations and the optimization of the country's economy policy as one of the crucial factors for ensuring sustainable e conomic evolvement. it also considers the provision of sustainable economic growth as the foundation for increasing the competitiveness of the national economy. the terms innovation, economic growth, sustainable economic growth, information technology, modern information technology. introduction among the important primary tasks defined in the socio-economic development program of uzbekistan since 2017, maintaining high rates of economic growth is one of the most important tasks. also, in the project "strategy of actions on five priority areas of development of the republic of uzbekistan in 2017-2021", special attention is paid to further strengthening of macroeconomic stability and maintaining high rates of economic growth. achieving stable economic growth in the country is first of all reflected in the increase in the standard of living and life of citizens, in the increase of jobs and incomes. information and communication technologies (ict) and innovations, including the country's tax policy, occupy a special place among the factors underlying sustainable economic growth. in the discoveries made in the recent past, the intellectual potential of a person was in the main place, while today, the discoveries and innovations in modern science are mainly implemented with the help of information and communication technologies. in order for countries to take a worthy place in the process of international economic integration, the information level of the society in that country is one of the most important issues. the basis of the information society is the implementation of the infrastructure of information and communication technologies. the article used the terms innovation, economic growth, sustainable economic growth, information technology, modern information technology, and information-communication. when we analyze them in economic books, we can find the following definitions. "innovation" means the use of achievements of human intelligence (discoveries, inventions, scientific and engineering projects, etc.) to increase productivity in one or another field of activity. technological, economic, environmental, management, military, political, socio-cultural, legal and other innovations can be specified among them. innovations are innovations introduced in any field of activity. "economic growth" is the development american journal of business management, economics and banking volume 11 april, 2023 p a g e | 75 www.americanjournal.org of the economy, that is, the increase in the production of goods and services that are life benefits [2]. "economic growth" directly refers to the gross domestic productit is expressed in the increase of absolute and per capita and per unit of economic resource expenditure, as well as in the improvement of its quality and composition [3]. the concept of "sustainable economic growth" should represent a state of the national economy in which there are real variable criteria and indicators that can be negative or zero. it should grow continuously at a proportional rate [4]. "information technology" is a set of methods, devices, methods and processes used to collect, store, search, process and distribute information[5]. technology[6]. "information-communication" is a complex that integrates modern information, computer and telecommunication technologies, their implementation systems and tools, designed to organize information-communication products and services for organizations and citizens[7]. there are many indicators of economic growth, including sustainable economic growth. in the article, we mainly present an analysis of the introduction of information and communication technologies and innovations into the economy, as well as their importance in determining the prospects of economic development. in stimulating and furthering economic development, innovative technologies open up enormous opportunities. in this case, the use of innovative technologies increases the level of direct participation of the population in the life of society. in the case of information and communication technologies, it leads to the improvement of the standard of living of the population, an increase in their income, and ultimately to the growth of the country's economy. analysis and results at present, ict national it is known from the experience of foreign countries that it directly participates in the development of the economy and the implementation of socio-economic development programs and leads to a positive result. another important aspect of ict is that with the help of ict, information is collected, processed, stored and transmitted. in the process of international economic integration, it is very important to be the first to obtain the necessary information, to use it effectively, and to quickly deliver the information to those in charge. in developing economies, government organizations and private enterprises are achieving low-cost productivity and productivity gains with the participation of ict. the increase in productivity leads to an increase in the competitiveness of enterprises in these countries, as well as in socio-economic development. due to the increase in labor productivity, enterprises can increase the salaries of their employees. in this case, the increase in salaries of employees without increasing the cost of manufactured goods prevents the inflationary effect of the increase in income, and as a result, income increases. that is, one of the conditions for achieving sustainable economic growth is the need to invest in assets such as ict, which lead to an increase in productivity and productivity in the economy. investment in the field of ict leads to an increase in productivity in the enterprise. another great importance of ict in society is that it facilitates the process of working with information and knowledge. the process of working with the necessary information and knowledge of the economically disadvantaged strata of citizens is carried out using global ict, that is, the internet. in short, ict acts as a catalyst for social development. because the problems that are solved by the implementation of ict in our life today are a clear proof of this. becoming a full member of the global information society is one of the strategic issues for our country. in order to positively solve this issue, shortand medium-term ict development programs are being developed and implemented. currently, the implementation of ict in the activities of state american journal of business management, economics and banking volume 11 april, 2023 p a g e | 76 www.americanjournal.org administration and local authorities, the development of its infrastructure, and the development of the national segment in the internet network are being carried out rapidly. it is the basis of development, it is the basis of our economy. if we close information or hide it, we lose more" [8-12]. in other words, ict is a component of the concept of an information society. one of the most urgent tasks today is to create a comprehensive national ict industry in the country based on the knowledge and skills gained from the practice of developed countries. millions of new jobs will be created in the country due to the establishment of the ict industry, billions of revenues will be generated for the state budget due to production. today, ict has become an integral part of the infrastructure of the world economy. for this reason, developed countries consider ict as one of the main directions of economic development and are on the way to its further development. summarizing all the above-mentioned points, the following expected results of the introduction of information and communication technologies in society can be summarized: it brings openness and clarity to mutual information exchange between the state and society; help build a transparent civil society; increases management efficiency; creates completely new opportunities for monitoring changes in society and economy; improves the management process between state authorities and economic entities; dramatically reduces costs in public administration; application to economic processes when: helps to reduce the cost of products and services; increases the competitiveness of products and services; increases production efficiency and the volume of services; provides an opportunity to establish and develop electronic trade; reduces the financial costs of receiving and sending data; as a result of receiving information in short periods and with good quality, the efficiency of economic activity increases; in social life: helps to form the population as a civil society; creates new opportunities for learning; improves the quality of medical services; increases the possibility of preserving cultural and spiritual heritage; creates facilities for increasing the population's employment and obtaining additional income; helps people to identify natural disasters and changes in advance and prevent them [9-21]. as a result of the implementation of the innovative development strategy of the republic of uzbekistan for 2019-2021, great progress was made in the provision and promotion of innovative and technological development in economic sectors and the social sphere, including agriculture, energy, construction, education, and health care. as a result of this, in comparison with 2015, the ranking of the global innovation index, which is evaluated according to 81 indicators, rose by 36 places in our republic. the amount of annual funds allocated from the state budget to the fields of innovation and science has been increased by 3 times compared to 2018 and reached 1.5 trillion soums. in 2018, there were 6.5 thousand young scientists, and in 2022, their number was 10.8 thousand, that is, it increased by one and a half times. in the last 4 years, the number of special institutions for financing innovative activities (innovation funds, venture organizations, etc.) has increased to 28. delivered to; starting from 2018, the annual international week of innovative ideas "innoweek.uz" is turning into a platform of innovative technologies that brings together foreign innovation and scientific centers, investment funds, technological agencies, technology parks and business incubators towards one goal. at the same time, the level of commercialization of scientific and innovative developments in the real sector of the economy, cooperation between science, education and industry remains relatively low. in particular, by the decrees of the president of the republic of uzbekistan, the strategy of innovative development of the republic of uzbekistan in 2019-2021, the concept of the development of the higher education system of the republic of uzbekistan until 2030, the concept of the development of science american journal of business management, economics and banking volume 11 april, 2023 p a g e | 77 www.americanjournal.org until 2030, the strategy "digital uzbekistan 2030", the public education system of the republic of uzbekistan until 2030 development concept, the strategy of agricultural development of the republic of uzbekistan for 2020-2030 and the development strategy of new uzbekistan for 2022-2026 were approved. laws "on science and scientific activity", "on innovative activity", and "on education" were also adopted. in addition, within the framework of the innovation development strategy in 2019-2021, the amount of funds allocated from the state budget to the field of science has increased by three times, the number of young scientists has increased from 6.5 thousand to 10.8 thousand, and special institutions for financing innovative activities have been established. in conclusion, it can be noted that implementation of the adopted documents will serve the full formation and consistent development of the relevant elements of the innovation ecosystem in our republic until 2026. the impact of innovation growth on our economy can be seen in the underlying economic growth of last year alone. these indicators contributed to the development of the country. innovation has brought people closer together, strengthened and accelerated integration, has shown its importance in every field, innovation is of great importance in the development of economy and entrepreneurship [14-25]. table.1 the main economic indicators of uzbekistan’s gdp indicators with the assist of innovation {in trln sum} table.2 the main economic indicators of uzbekistan’s gdp indicators with the assist of innovation {in %} 888.3 266.4 364.5 551.1 357.6 130.8 197.9 0 200 400 600 800 1000 major economical indisators in trnl sum трн % 5.7 0.5 3.6 5.2 15.9 6.6 19.4 0 5 10 15 20 25 basic economical indicators growth in % american journal of business management, economics and banking volume 11 april, 2023 p a g e | 78 www.americanjournal.org the service sector will grow by 15.9% in 2022, and growth is observed in all sectors. in 2022, financial services grew at the highest rate by 29.3 percent, communication and information services by 25.5 percent, education by 15.3 percent, accommodation and food by 14.7 percent, and healthcare by 11.5 percent. the volume of services rendered in the field of transport increased by 12.4 percent, and air transport services by 6.5 percent. the growth rate in the construction sector is practically unchanged at 6.6% in 2021 compared to 6.8% in 2021. according to the reports of international experts and organizations, the year 2023 will cause serious problems for the world economy and the risk of a global recession against the background of the intensification of geopolitical opposition, the ongoing uncertainty regarding the situation related to the coronavirus. the goal of deep economic reforms, which are consistently implemented in uzbekistan, is to ensure stable economic growth of the country on the basis of innovative development. it is known from world experience that the indicator of innovative development is represented by the share of expenses allocated to scientific research and experimental design development (ittki) in the country's gross domestic product (gdp) [26-30]. the crucial issues and solutions in order to accelerate innovative development in the republic, wide application of innovations and technologies in all sectors of the economy, development of human capital, science and innovation, as a result of the reforms of the last five years, to increase and develop the quality and scope of education in the republic, to ensure the adaptability of the personnel training system to the needs of the economy, scientificnormative legal frameworks aimed at developing effective mechanisms for all-round support and development of innovative activities, creation of favorable conditions for formation and further improvement of innovative potential of the country were developed and fundamentally updated. references 1. keith s. taber., modeling learners and learning in science education: developing representations of concepts, conceptual change to inform teaching and research. springer., uk, 2013, english. 2. olmasov a., vakhobov a. economic theory. textbook. t.: economics and finance, 2014. 3. bekmurodov a.sh., gafurov u.v. uzbekistan is on the way to a new and high stage of modernization of the economy and deepening of reforms. t.: economy, 2008. p. 126. 4. slovar sovremennoy ekonomicheskoy teorii makmillana m., 1997. str. 471. 5. alimov r.kh. and the team of authors. information technology and systems. textbook. t.: "vorisnashriyot", 2011. 227 p. 6. alimov r.kh. and the team of authors. information technology and systems. textbook. t.: "vorisnashriyot", 2011. 230 p. 7. infokommunikatsii v delovom mire: uchebnoe posobie. pod obshch.ed. rayman l.d. m., fiordinfo, 2001. str. 31. 8. aripov a.n., iminov t.k. management issues in the field of information and communication technologies of uzbekistan. monograph. t.: "science and technology", 2005. page 54. 9. yuldashevna, a. b. (2020). characteristics of fruit and vegetable development in the regions. национальная ассоциация ученых, (54-2 (54)), 20-21. 10. https://www.researchgate.net/publication/338037218 https://www.researchgate.net/publication/338037218 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 79 www.americanjournal.org 11. yuldasheva, n., & xamdamjonov, m. (2022). identification, elimination of shortcomings in the quality of goods and its economic problems. science and innovation, 1(5), 385-388. 12. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. 13. yuldasheva, n. (2022). features of the process of forming innovative strategy under conditions of modern realities. academic research in modern science, 1(9), 310-312. 14. abduvakhidovna, y. n. (2022). directions for the effective use of innovative strategies in the management of industrial enterprises. open access repository, 8(6), 125-129. 15. юлдашева, н. (2022). корхоналарда инновацион ривожланиш стратегиясини бошқариш хусусиятлари. экономика и образование, 23(2), 129-135. 16. юлдашева, н. а. (2022). инновационный подходы в управлении бизнесом. in инновации в управлении социально-экономическими системами (icimss-2021) (pp. 296-302). 17. abduvakhidovna, y. n. (2023). factors influencing the implementation of the innovation strategy at industrial enterprises. world bulletin of management and law, 19, 5-11. 18. юлдашева, н. а., & исраилова, м. в. (2022). нетнографические исследования как современный метод управления продуктом. in инновации в управлении социальноэкономическими системами (icimss-2021) (pp. 313-321). 19. djuraeva, d. d., & berdiyeva, z. m. (2016). cultural heritage as a factor of human development (on the example of uzbekistan). ученый xxi века, (5-2 (18)), 23-25. 20. юлдашева, н. а. (2022). иқтисодий фанларни ўқитишда талабалар мустақил ишининг мазмуни ва ўрни. oriental renaissance: innovative, educational, natural and social sciences, 2(special issue 27), 24-29. 21. бердиева, з. м., & мухамадиев, б. т. (2022). безопасность функциональных пищевых продуктов (фпп). безопасность, 95(2). 22. юлдашева, н. а. (2022). научно-теоретические аспекты разработки инновационных стратегий в управлении промышленными предприятиями. бюллетень науки и практики, 8(5), 457-461. 23. yuldasheva, n., & xamdamjonov, m. (2022). mahsulot sifatida nuqsonlarni aniqlash, bartaraf etish va uning iqtisodiy muammolari. science and innovation, 1(a5), 385-388. 24. юлдашева, н. а. (2021). вопросы применения цифровой трансформации. in наука сегодня: задачи и пути их решения (pp. 51-52). 25. yuldashevna, a. b. (2021). the digital economy as a key factor in the formation of a favourable investment climate. researchjet journal of analysis and inventions, 2(12), 1-6. 26. yuldasheva, n. a. (2021). вопросы активного развития цифровой экономики. theoretical & applied science, (5), 375-379. 27. abdullayeva, b. y. (2022). повышение эффективности инновационных процессов на предприятиях текстильной промышленности. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(4), 107-115. 28. юлдашева, н. а. (2020). инқирозга қарши бошқарувда давлат томонидан тартибга солишнинг асосий йўналишлари. экономика и финансы (узбекистан), (2 (134)), 170-177. 29. yormatov, i. t., yuldasheva, n. a., & toshpulatov, i. a. (2020). issues of electronic trade development in uzbekistan. theoretical & applied science, (12), 211-215. 30. юлдашева, н. а. (2020). инқирозга қарши давлат бошқаруви асослари. global science and innovations 2020: central asia, 1(3), 119. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 99 www.americanjournal.org financing projects implemented on the basis of public-private partnership khaydarova charos teacher, department “valuation and investments”, tashkent institute of finance, tashkent city, uzbekistan e-mail: khaydarovacharos3@gmail.com a b s t r a c t k e y w o r d s in this article, the main task of public-private partnership is the effective interaction of public and private partners for the stable socio-economic development of uzbekistan, and the main mechanisms for attracting private investments at the expense of attracting public and private partner’s resources to the economy. opinions of foreign and local scientists are given on the term private partnership. also, the article presents the practice of establishing a public-private partnership in the world experience and the analysis of projects financed on the basis of publicprivate partnership in uzbekistan. public-private partnership, financing, investment, cooperation, project, project financing, investment attractiveness, project risk. introduction international experience gathered in recent years shows that one of the main mechanisms for expanding the resource base and mobilizing unused resources for economic development and increasing the efficiency of state (society) property management is public-private partnership (ppp). the public-private partnership mechanism is widely used in most sectors of the economy in all developed countries of the world. great britain, germany, and the united states are leading the publicprivate partnership. public-private partnership projects are also developing in other countries, such projects in the cis countries are developing in the russian federation, kazakhstan, kyrgyzstan and other countries. in the development strategy of the president of the republic of uzbekistan for 2022-2026, “from 2022, on the basis of public-private partnership, the creation of infrastructure such as sports and cultural facilities, creative clubs, employment assistance and training centers, business facilities in the territory of the neighborhood implementation of measures, expansion of public-private partnership, energy, transport, health, education, ecology, communal services, water management and other sectors on the basis of public-private partnership equal to 14 billion us dollars it is planned to attract investment” [1]. investment practice shows that in the most common models of public-private partnership there is a problem of risk distribution between the parties participating in the partnership. because the long-term american journal of business management, economics and banking volume 11 april, 2023 p a g e | 100 www.americanjournal.org period of providing services is determined not by the will of the state, but by the need to return private sector investments. in addition, the diversity of contract forms only legally strengthens the obligations of the parties directly related to the distribution of responsibility and risks. therefore, the issues of effective use of investments on the basis of public-private partnership are important and require indepth research in this field. 2. literature review economist e.r. yescomb believes that in recent years, through public-private partnerships, the purchase and maintenance of public sector infrastructure, transport (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing), communal services (water supply, sewage treatment, waste disposal), government offices and other accommodation and other special services (communication networks or defense equipment) are increasingly being financed [2]. e.a. dynin notes that “public-private partnership is a process of combining material and non-material resources of society (state and private sector) on a long-term and mutually beneficial basis to create social benefits or provide social services [3]”. also, s.s. chernov believes that “public-private sector cooperation is a special form of long-term cooperation between the state and business in order to implement socially significant investment projects aimed at the development of transport, energy and social infrastructure [4]”. public-private partnership is a type of cooperative agreement, which means the partnership of two or more representatives of the state and private sector in investment, infrastructure, innovation projects, as well as socio-economic, scientific, as well as programs of state importance. the term “public-private partnership” describes a number of economic relations between public and private enterprises and organizations within the framework of infrastructure and other services. other concepts used in the process of such economic relations include the concepts of private sector participation (private sector participation) and privatization (privatization), but there are certain differences between these concepts [5]. the analysis of existing publications shows the need to approach the understanding of the nature of public-private partnership in a broad and narrow sense. first of all, public-private sector partnership is any kind of mutual cooperation between the state and business. secondly, public-private sector partnership is understood as mutual cooperation between business and the state in the process of implementing strategic, nationally important social projects [6]. according to u.i. djumaniyazov, “public-private partnership is based on the long-term strategic tasks and goals of the state within the framework of current laws, based on the distribution of various economic, political, social, cultural and other risks, risks, and risks that may arise it is the literally mutually beneficial relations with the private sector for the construction of extremely socio-economic and, if necessary, politically important objects for the population, or for the provision of social services [7]”. n.sh. shavkatov believes that “public-private partnership is an institutional and organizational alliance between the state and private business for the implementation of projects and programs of social importance in the fields from scientific research to services [8]”. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 101 www.americanjournal.org 3. research methodology economic research methods such as collecting data on the economic importance of public-private partnership and its increase, analyzing the collected data, studying the practice of world experience, synthesizing, logical thinking and using the infographic method, displaying statistical data in the form of a table were widely used. 4. analysis and discussion of results when talking about the reforms implemented in our country, the topic of state monopoly and privatization has been the cause of many disputes. in social networks, we can observe that the population is dissatisfied with the state monopoly and the resulting inefficiencies in such areas as banking, transport, and automobile industry. in solving these problems, public-private partnership is an effective mechanism tested in the world experience. in the modernization and development of the national economy, the main focus today is on investments in the economy. in addition, as a result of the development of market mechanisms, new economic relations are formed between the state and economic entities, that is, the private sector. one of the manifestations of such economic relations in the practice of developed countries is partnership relations between the state and private sectors. the simplest scheme of government and private business cooperation is as follows: ❖ the state announces that it plans to build or modernize a social infrastructure object (for example, a clinic, road, kindergarten, school, etc.) and invites investors to tender. ❖ the winning private company will finance the project (attract capital), build (or modernize) the facility and manage the facility throughout its life cycle. ❖ at the end of the contract between the state and a private company, according to the terms of the agreement, the object is either transferred to the state or remains in the hands of the private company. the state, in turn, makes monthly unitary payments that include all expenses, loan interest and income of the private partner (figure 1). figure 1. procedure for implementation of public-private partnership projects and its participants [9] american journal of business management, economics and banking volume 11 april, 2023 p a g e | 102 www.americanjournal.org public-private partnership is primarily a combination of financial, technological and management resources of the state and business in the organization of infrastructures and provision of socially important services. in such cooperation, relations are established like cooperation between state and private companies. the public-private partnership mechanism is widely used in most sectors of the economy in all developed countries of the world. public-private partnership is a type of cooperative agreement, which means partnership relations between two or more state and private sector representatives in investment, infrastructure, innovation projects and socio-economic, scientific, as well as programs of state importance. the term “publicprivate sector partnership” describes a number of economic relations between public and private enterprises and organizations within the framework of infrastructure and other services. private sector and public cooperation represents the participation of business entities in the organization and management of production, household services and social infrastructure, as well as in the provision of social services. figure 2. the main directions of projects implemented on the basis of public-private partnership [10] the role of the private sector in cooperation is the effective conduct of business, market relations, efficient organization of management, financial operations, and innovative activities. also, the private sector can also participate in investment activities, depending on the form of the contract. the main project directions in the practice of developed countries, where public-private partnership is implemented, are depicted in the picture above. (figure 2) these project directions have the nature of directly indicating the content and purpose of ppp relations. differentiation of contracts in public and private partnership relations is divided into types based on the nature of the development of a certain industry or sector, as well as types of projects. at the current stage of the development of our country’s economy, the establishment of public and private partnership relations serves to accelerate the development strategy of our country. ppp is a mutual alliance of state agencies and private business, and its purpose is to create and develop projects american journal of business management, economics and banking volume 11 april, 2023 p a g e | 103 www.americanjournal.org of social importance, from strategic sectors of the economy to the provision of services at the national level or in some of its regions. according to the methodology of the world bank, an infrastructure project can be considered as a private-public partnership project only if the private company assumes a part of the operational risks along with the operating costs and related risks. and this does not depend on whether the private company operates the state infrastructure object independently or jointly with the state body through the ownership of the enterprise or in another way. table 1 forms of public and private sector partnership in world practice [11] 1. build-operate-transferbot construction of the project based on the mechanism of mutual agreement, its use during the contract period (without the right of ownership) and transfer to the state at the end of the contract. 2. build-own-operatetransfer-boot construction of the project based on the mechanism of mutual agreement, ownership of it during the term of the contract and transfer to the state at the end of the contract. 3. (build-transfer -operate bto) as soon as the construction of the project is completed, it will be transferred to the state. the private partner provides services to him during the term of the contract, and consumers make continuous payments for the provided services. 4. (build-own-operateboo) construction of the project based on the mechanism of mutual agreement, use of it based on the right of ownership during the contract period, and the right of ownership remains with the private partner at the end of the contract. 5. (build-operate-maintaintransfer-bomt) the life cycle of the project and its maintenance will be carried out by the state. the right of ownership remains with the state. 6. (design-build-ownoperate-transferdboot) design, construction of the object based on the mechanism of mutual agreement, use of it based on the right to own it during the term of the contract, and transfer it to the state at the end of the contract. 7. (design-build-financingoperate-dbfo) it also undertakes to finance the construction and maintenance costs of the facility by the private sector. the state covers costs through payments for services. for example, in the models of the first group under consideration (“management and lease agreements”), the transfer of a part of the operational risks of a private company is usually carried out through the mechanism of contractual obligations. table 2 classification of public-private partnership contracts [11] life cycle contract dbfo (design – build – finance – operate); pfi (private finance initiative) the private partner will carry out the design, construction (reconstruction) and financing of this activity, and will manage the quality standards agreed with the public partner. bol/dbolt/dbol/dbolt design-buildown-lease-buy the private partner designs (builds, reconstructs) the object, acquires the property rights, leases it to the state partner (with or without the right to purchase). operator contract operation and maintenance: management and technical service. the private partner manages the object during the period agreed with the state partner, performs service work, receives income from the provided service, the right to own the object remains with the state partner. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 104 www.americanjournal.org it is especially important to study effective ppp models in the development of the country’s infrastructure of developed countries and to implement them for our country. implementation of projects through these forms of relations can be very beneficial for both the state and the private sector, but their costs must be strictly controlled and contracts fully implemented in order to achieve economic efficiency. public-private partnership (ppp) is a type of agreement in which the public and private sectors enter into long-term cooperative relations for the purpose of public benefit or service. figure 3. investments made in the energy sector in countries of the world on the basis of ppp [12] based on the level of development of countries of the world, investments made in the energy sector on the basis of ppp are higher in low and middle-income countries than in low-middle income countries. the united states occupies a special place in the activities of the developed countries ppp, not only because the country is the leader of world economic development, but also because the ppp is the most widespread in the united states of america. the beginning of the modern stage of the ppp in the usa was associated with the name of the country’s president reagan in the 1980s, and the economic policy of that time was called reaganomics. it includes a number of components, one of which is the privatization of infrastructure (partially or completely). in 2022, 24.0 trillion will be allocated from the state budget to the health sector (including centralized investment costs). soum funds or 3.5 trillion compared to the plan approved in 2021. soums or 17% more funds have been allocated. 178, 6 bln. for projects on construction of student residences on the basis of public-private partnership and orders of state higher education institutions. it is also planned to allocate subsidies in the amount of soums. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 105 www.americanjournal.org table 3 analysis of ppp projects in the republic of uzbekistan [13] in terms of sectors total number of projects total value of projects million us dollars projects with a signed ppp agreement projects on the verge of signing a ppp agreement projects in the tender stage energy 4 474,0 0 1 3 utilities 5 1 676,93 4 0 1 transportation 1 82,8 1 0 0 health care 28 33,09 26 2 0 water management 88 16,79 88 0 0 ecology 29 53,40 14 0 15 education 29 10,69 29 0 0 sports 1 0,60 1 0 0 culture 7 4,63 6 1 0 information technology 1 20,0 1 0 0 agriculture 1 4,72 1 0 0 law enforcement 1 3,0 1 0 0 total 195 2 380,65 172 4 19 in 2019-2022, the public-private partnership development agency, in cooperation with the responsible ministries and agencies of the republic, carried out work on a total of 293 public-private partnership (ppp) projects with a total value of more than 2.68 billion dollars. 5. conclusions and suggestions today, public-private partnership is an innovative mechanism for the implementation and financing of infrastructure projects. although this mechanism was established in our country not long ago, today it has its own regulatory and legal basis and is causing great interest among state organizations and private partners. if we take into account that the project object in the implementation of ppp projects is mainly infrastructure objects, infrastructure is the basic physical or organizational structures, such as buildings, roads, electric power system, which are necessary for the activities of enterprises and society. and it is important to know the access of objects. from the above analysis and from the shortcomings listed below, in the development of the publicprivate partnership sector in our country, if special attention is paid to the strengthening of the legislative base, the holding of tenders, the creation and management of public-private partnership projects, the effectiveness of our projects in the field will be even higher: ➢ we need to strengthen the legislative base in the implementation of the public-private partnership project, for example, the law on the implementation of the public-private partnership project in the field of education has not yet been adopted; ➢ implementation and challenges of concessions due to different approaches to selected concessions across countries; ➢ the difficulty of finding a reliable partner in the implementation of a public-private partnership project; ➢ few or almost no participants (competitors) in conducting tenders for projects; ➢ lack of professionalism and experience of public bodies that can effectively use and manage the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 106 www.americanjournal.org mechanism of public-private partnership in the implementation of infrastructure projects, etc. literatura/reference: 1. decree no. pf-60 of the president of the republic of uzbekistan dated january 28, 2022 “on the development strategy of the new uzbekistan for 2022-2026”. 2. yescomb e.r. public-private partnership: basic principles of financing (public-private partnership principles of policy and finance.) m.: alpina publisher, 2015. 457 p. 3. dynin e.a. business risks in public-private partnership / dynin e. a. // society and economics. 2007. no. 5-6. p.111. 4. chernov s.s., sukhanov i.s. issues of evaluating the effectiveness of the implementation of socially significant projects // business. education. right. bulletin of the volgograd institute of business. 2016. no. 4 (37). pp. 92–97. 5. felsinger k. former staff member of the asian development bank’s (adb) regional and sustainable development department (rsdd), special initiative group (rsod-si) /publicprivate partnership / handbook. 2007. 100p. 6. r.i.nuritbetov, a.s.sultanov “issues of increasing the effectiveness of the financing mechanism in the housing and communal economy based on public-private partnership” // from the conference database, pp. 192-195. 7. u.i. djumaniyazov – corporate on the basis of public-private partnership some theoretical methodological issues of management development – “economics and innovative technologies” scientific electronic journal. no. 3, may-june, 2017, 9-page. 8. n.sh. shavkatov “financial efficiency analysis of public-private partnership projects”. \\ economy and finance 2020, 4 (136) page 2. 9. it was compiled by the author as a result of the research of the literature related to the field of economics and finance. 10. mataev t.m. definition and classification of forms of public-private partnership // russian journal of entrepreneurship. 2014. volume 15. no. 7. p. 51-58. 11. yescomb e.r. public-private partnership: basic principles of financing (public-private partnership principles of policy and finance.) m .: alpina publisher, 2015. 457 p. 12. prepared by the author based on information from the official website of the world bank – https://data.worldbank.org/ 13. as of 22.11.2021, compiled by the author based on the information of the public-private partnership development agency under the ministry of finance – https://www.pppda.uz/5684 . https://data.worldbank.org/ https://www.pppda.uz/5684 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 138 www.americanjournal.org problems of improving agrocluster enterprises and its management in the development of the fruit and vegetable network in uzbekistan takhirjan ganievich yokubov senior lecturer andijan andijan institute agriculture and agrotechnology egamberdi mominzhon ugli sotvoldiev assistant a b s t r a c t k e y w o r d s providing the population of uzbekistan with food products and ensuring economic growth through the export of fruits and vegetables to the world market is one of the pressing issues of our time. this article reveals the importance of the development of fruit and vegetable growing and viticulture in our country, including in the andijan region, and the features of improving the management system in the activities of enterprises of the fruit and vegetable cluster in this area, and also emphasizes the importance of regulatory documents for the development of the industry and the importance of the ongoing with this work. economy and agricultural sector, integration, fruits and vegetables, food security, exports, investments, cluster, greenhouses, farmers, leasing, lending, financial support. introduction ўзбекистонда аҳоли фаровонлигини доимо ошириб боришда халқимиз турмуш тарзига энг яқин ва тез натижа берадиган йўналиш қишлоқ хўжалигида юқори даромадли интенсив ишлаб чиқаришни ташкил этишдир. бунда мавжуд салоҳиятимизни тўлиқ ишга солишимиз, унга яраша катта даромад олишимиз зарурлигини инобатга олган ҳолда сўнгги йилларда мамлакатимизда мазкур соҳа юқори шиддат билан ислоҳ қилинмоқда. ўзбекистон республикаси президенти ва ҳукумати томонидан соҳани иқтисодиётни трасформациялаш жараёнида мева-сабзавотчиликни ривожлантиришга устувор йўналишлар сифатида катта эътибор қаратилмоқда. зеро, мева-сабзавотчилик маҳсулотларини интенсив технологиялар асосида етиштириш орқали ташқи бозорларда сотиш ҳисобига мамлакат валюта тушумининг сезиларли қисми шаклланаётганлиги ҳам соҳани тубдан ислоҳ қилиш ва жадал ривожлантиришнинг устуворлигидан далолат беради президентимиз ш.м.мирзиёев томонидан боғдорчилик тармоғи ва иссиқхона хўжаликларида бошқарув тизимини яхшилаш, давлат томонидан қўллаб-қувватлашнинг самарали механизмларини жорий этиш, қишлоқ хўжалигида кооперацияни йўлга қўйиш, замонавий american journal of business management, economics and banking volume 12 may, 2023 p a g e | 139 www.americanjournal.org ресурс тежамкор технологиялар асосида юқори сифатли, рақобатбардош ва экспортбоп маҳсулотлар ишлаб чиқариш ҳажмларини ошириш, озиқ-овқат саноатини жадал суръатларда ривожлантириш мақсадида қатор фармон ва қарорлар қабул қилиниб, ишлаб чиқаришга жорий этилмоқда. булар жумласига ўзбекистон республикаси президентининг 2018 йил 29 мартдаги “ўзбекистон республикасида мева-сабзавотчиликни жадал ривожлантиришга доир қўшимча чора-тадбирлар тўғрисида”ги пф-5388 ва 2019 йил 23 октябрдаги “ўзбекистон республикаси қишлоқ хўжалигини ривожлантиришнинг 2020-2030 йилларга мўлжалланган стратегиясини тасдиқлаш тўғрисида”ги пф-5853 сонли фармонлари ҳамда 2018 йил 17 октябрдаги “мева-сабзавот маҳсулотларини ташқи бозорларга чиқариш самарадорлигини оширишга доир қўшимча чоратадбирлар тўғрисида”ги пқ-3978 сонли ва 2019 йил 14 мартдаги “мева-сабзавотчилик соҳасида қишлоқ хўжалиги кооперациясини ривожлантириш чора-тадбирлари тўғрисида”ги пқ-4239 қарорларини келтириш мумкин. бунинг натижасида қишлоқ хўжалиги маҳсулотлари етиштирувчиларнинг кластер ва кооперативларга бириккан ҳолда хомашёни қайта ишлаш натижасида тайёрланган маҳсулотларни дунё бозорларига етказиб бериш даражаси ошмоқда. мисол учун, 2020 йилда 1,5 миллион тонна ёки қиймати 1,1 миллиард долларга тенг бўлган 60 турдан ортиқ мева-сабзавот маҳсулотлари дунёнинг 65 та мамлакатига экспорт қилинди. бунда мева-сабзавотчилик ҳамда томорқа хизмати кластерларининг ўрни биқиёсдир.жаҳон бозорида мева-сабзавот маҳсулотлари савдоси 205 миллиард долларни ташкил этган бир пайтда, бизнинг улушимиз бир фоизга ҳам етмаяпти. шу боис соҳага хорижий инновацион тажрибаларни жорий этиш, ноанъанавий экспортбоп мевасабзавот маҳсулотлари етиштиришни кўпайтириш орқали жорий йилда мева-сабзавот экспортини 2,5 миллиард долларга, 2023 йилга қадар эса бу кўрсаткични 5 миллиард долларга етказиш мўлжалланган эди[12]. республикамизда 2021 йилнинг 9-ойи давомида 1067,1 минг тонна 624,9 миллион ақш доллари миқдорида мева сабзавот маҳсулотлари экспорт қилинган бўлса, 2022 йилнинг шу даврида 1235,8 минг тонна ёки 760,2 миллион ақш доллари миқдорида маҳсулотлар экспортига эришилди , бу ўтган йилнинг шу даврига нисбатан тегишли равишда +15,8 фоизга, +21,7 фоизга ўсди. бунда асосий импорт қабул қилувчи мамлакатлар сифатида россия 379,9 минг тонна 337,2 миллион ақш доллари, қозоғистон 517,4 минг тонна 159,4 миллион ақш доллари, хитой 61,0 минг тонна, 51,9 миллион ақш доллари, покистон 20,7 минг тонна 48,7 миллион ақш доллари миқдорида маҳсулотлар юборишга эришилди. шунингдек қирғизистон, туркия, афғанистон, белорус, эрон, озарбайжон каби мамлакатларга ҳам мева сабзавот маҳсулотлари етказиб берилди[11]. шунинг учун ўзбекистон республикаси президенти ш. мирзиёев томонидан боғдорчилик тармоғи ва иссиқхона хўжаликларида бошқарув тизимини яхшилаш, давлат томонидан қўллабқувватлашнинг самарали механизмларини жорий этиш, қишлоқ хўжалигида кооперацияни йўлга қўйиш, замонавий ресурс тежамкор технологиялар асосида юқори сифатли, рақобатбардош ва экспортбоп маҳсулотлар ишлаб чиқариш ҳажмларини ошириш, озиқ-овқат саноатини жадал суръатларда ривожлантириш мақсадида қатор фармон ва қарорлар қабул қилиниб, ишлаб чиқаришга жорий этилмоқда. дастлаб ўзбекистонда мева-сабзавотчиликни самарали ривожлантиришни таъминлаш, юқори сифатли ва рақобатбардош тайёр маҳсулот ишлаб чиқаришни кенгайтириш, уни йирик хорижий american journal of business management, economics and banking volume 12 may, 2023 p a g e | 140 www.americanjournal.org бозорларга чиқариш мақсадида ўзбекистон республикаси президентининг 2018 йил 29 мартда “ўзбекистон республикасида мева-сабзавотчиликни жадал ривожлантиришга доир қўшимча чора-тадбирлар тўғрисида” пф-5388 сонли фармони билан сурхондарё вилоятида мевасабзавот маҳсулотлари соҳасида қишлоқ хўжалиги ишлаб чиқаришида кластер усулини яратишни қўллаб-қувватлаш бўйича тажриба йўлга қўйилди. шунингдек ўзбекистон республикаси президенти ш. мирзиёевнинг 2020 йил 24 январдаги олий мажлис аъзоларига анъанавий мурожаатномасида таъкидланганидек : "пахта ва ғалла етиштиришда давлат буюртмаси бекор қилинади. келгусида қишлоқ хўжалиги вазирлиги томонидан кўрсатма бериш, ресурсларни тақсимлаш, режа белгилаш кабилардан воз кечилади. аграр соҳанинг бошқа соҳаларига ҳам арзон кредитлар ажратилиши йўлга қўйилади. шундан кейин, жорий йилда 2 миллиард ақш долларига тенг, келгуси 5-7 йилда эса бундан 3-4 баравар кўп мева-сабзавот маҳсулотларини экспорт қилиш режалаштирилмоқда. шу йилнинг ўзида 44 минг га ер майдонда сувни тежайдиган технологиялар жорий этилади"[4] деб таъкидлаб ўтдилар. ўзбекистон республикасининг президентининг 2017 йил 7 февралдаги "ўзбекистон республикасини янада ривожлантириш бўйича ҳаракатлар стратегияси тўғрисида"ги пф-4947сонли фармони, 2019 йил 23 октябрдаги «ўзбекистон республикаси қишлоқ хўжалигини ривожлантиришнинг 2020 2030 йилларга мўлжалланган стратегиясини тасдиқлаш тўғрисида»ги пф-5853-сон фармони, 2019 йил 11 декабрдаги пқ-4549-сонли "мевасабзавотчилик ва узумчилик тармоғини янада ривожлантириш, соҳада қўшилган қиймат занжирини яратишга доир қўшимча чора-тадбирлар тўғрисида"ги қарорини ижросини таъминлаш ҳамда республикада боғдорчилик ва иссиқхона хўжаликларини ҳамда мева-сабзавот кластерларини қўшимча молиявий қўллаб-қувватлаш мақсадида вазирлар маҳкамасининг 2020 йил 19 февралдаги 102-сонли "боғдорчилик ва иссиқхона хўжаликларини ҳамда мева-сабзавот кластерларини қўшимча молиявий қўллаб -қувватлаш чора-тадбирлари тўғрисида"ги қарори, 2021 йил 27 январдаги пқ-4964-сон "фермер, деҳқон хўжаликлари ва томорқа ер эгаларини молиявий қўллаб-қувватлаш бўйича қўшимча чора-тадбирлари тўғрисида"ги қарорлари, вазирлар маҳкамасининг 2021 йил 11 мартдаги 130-сон "қишлоқ хўжалиги маҳсулотлари ишлаб чиқарувчиларини давлат томонидан молиявий қўллаб-қувватлашни ташкил этиш тўғрисида"ги қарорлари ва бошқа соҳага оид бошқа меъёрий-ҳуқуқий ҳужжатларда белгиланган вазифаларни амалга ошириш мазкур соҳани жадал ривожланишига хизмат қилади. ўзбекистон республикаси президентининг 2022 йил 28 январдаги пф-60-сонли фармони билан тасдиқланган "2022 2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси" да қуйидагилар белгиланди: ➢ қишлоқ хўжалигини илмий асосда интенсив ривожлантириш орқали деҳқон ва фермерлар даромадини камида 2 баравар ошириш, қишлоқ хўжалигининг йиллик ўсишини камида 5 фоизга етказиш. ➢ туманларни аниқ маҳсулот турини етиштиришга ихтисослаштириш. ➢ қишлоқ хўжалигида давлат томонидан қўллаб-қувватлаш кўламини кенгайтириш ва суғурталашнинг янги механизмларини амалга ошириш. ➢ янги ва фойдаланишдан чиққан 464 минг гектар майдонни ўзлаштириш ва кластерларга очиқ танлов асосида ажратиш, 200 минг гектар пахта ва ғалла майдонларини қисқартириш ҳамда аҳолига очиқ танлов асосида узоқ муддатли ижарага бериш. http://lex.uz/docs/4567334 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 141 www.americanjournal.org ➢ экспортбоп маҳсулотлар етиштириш ҳамда мева-сабзавотчиликни ривожлантириш, интенсив боғлар майдонини 3 баравар ва иссиқхоналарни 2 баравар кўпайтириб, экспорт салоҳиятини яна 1 миллиард ақш долларига ошириш"[3] каби вазифалар белгиланди. мамлакатимиз президенти ш. мирзиёевнинг шанхай ҳамкорлик ташкилоти саммитидаги нутқида илгари сурилган ташаббуслардан бири. агросаноат кластерларни ривожлантириш ғояси бўлди. мамлакатларимиз ишбилармон доиралари ўртасида саноат кооперациясини рағбатлантириш дастурини қабул қилиш тарафдори эканлигини таъкидлади. бу инновацион ғоя тезда дунё илмий жамоатчилиги томонидан тан олинди [3]. унда президент ш. мирзиёевнинг бевосита ғояси асосида ўзбекистонда ҳаётга татбиқ этилаётган инновацион пахта тўқимачилик кластери тизимининг ноёблиги, янгилиги, халқнинг ҳаёт сифати ва мамлакат экспорт салоҳиятини оширишдаги стратегик аҳамияти ҳам илмий-назарий, ҳам амалий нуқтаи назардан чуқур таҳлил этиб берилган. мамлакатимизни дунёнинг илғор давлатлари қаторидан жой олишининг йўли бу аграр соҳада, илм-фанда, таълим тизимида ва бошқа соҳаларда кластер тизимларининг жорий этилиши ҳисобланади ўзбекистон республикаси вазирлар маҳкамасининг 2018 йил 21 сентябрдаги №752 сонли "андижон вилоятида мева-сабзавотчиликни кластер усулида ривожлантириш бўйича қўшимча чора-тадбирлар тўғрисида"ги қарорига асосан андижон вилоятида қишлоқ хўжалигини диверсификация қилиш, вилоят туманларининг табиий-иқлим шароитларига мос, серҳосил ва экспортбоп мева-сабзавот экинлари навларини жойлаштириш, ташқи бозор талабига тўлиқ жавоб берадиган маҳсулотларни етиштириш, сақлаш, қайта ишлаш ва сотиш жараёнини тўлиқ қамраб олувчи кластер тизимини кенг жорий этиш, янги иш ўринларини яратиш, мева-сабзавот етиштириш ва қайта ишлаш жараёнидаги иштирокчиларнинг моддий манфаатдорлигини ошириш мақсадида андижон вилоятида «premium agro gold» ва «навигул» масъулияти чекланган жамиятлари ҳамда «обод турмуш орзуси» фермер хўжалиги томонидан мевасабзавот маҳсулотлари етиштириш, сақлаш, қайта ишлаш ва сотишга ихтисослаштирилган намунавий мева-сабзавотчилик кластерларини ташкил этилиб, қуйидаги вазифалар белгиланди: -мева-сабзавот етиштириш бўйича илғор хорижий тажрибаларни ўрганиш асосида улардан ҳудудий шароитларда кенг фойдаланиш ҳамда мева-сабзавотчилик соҳасига кластер тизимини жорий қилишда хорижий мутахассисларни жалб қилиш; -ташқи бозор талабига тўлиқ жавоб берадиган қишлоқ хўжалиги маҳсулотларини етиштириш, истиқболда уларнинг селекцияси ва уруғчилигини мамлакатимизда ўзлаштириш ва ривожлантириш; -серҳосил мева-сабзавот экинларини экиш, маҳсулот етиштириш, сақлаш, қайта ишлаш ва сотиш жараёнини тўлиқ қамраб олувчи тизимни, шунингдек замонавий инновацион, ресурс тежайдиган технологияларни мева-сабзавот маҳсулотлари етиштириш жараёнига жорий қилиш ва фитосанитария қоидаларига риоя қилиш каби вазифалар белгиланган эди. шу нуқтаи назардан ўзбекистон республикаси президенти ва вазирлар маҳкамасинингнинг қарорларини изчил амалга ошириш мақсадида андижон вилоятида ҳам мева-сабзавотчилик кластери корхоналарини ташкил этиш орқали мамлакатимиздаги озиқ -овқат хавфсизлигини таъминлаш ва экспорт салоҳиятини оширишга эришилмоқда. андижон вилоятида 2019 йилда мева-сабзавотчилик агрокластерлари фаолиятини ташкил этиш икки босқичда амалга оширилди. дастлаб булоқбоши, хўжаобод, андижон, асака, жалақудуқ, american journal of business management, economics and banking volume 12 may, 2023 p a g e | 142 www.americanjournal.org олтинкўл ва балиқчи туманларида 22 минг 764 гектар экин майдонларининг 9 минг 469 гектарида, "навигул хк", дх "андижон сабзавотлари", "обод турмуш орзуси", "agro asia cluster", "садаф ниҳоли" каби агрокластерларга биркитилди. иккинчи босқичда 10 минг 484 гектар экин майдонларининг 2 минг 463 гектарида бўстон, марҳамат,улуғнор, шахрихон, қўрғонтепа, избоскан туманларида агрокластерлар ташкил этилди. умуман андижон вилояти бўйича 11 минг 932 гектар ер майдонлари мева-сабзавотчиликка ихтисослашган агрокластерларга бириктирилди. натижада 2020 йилда агрокластер тизимида 62900 тонна мевасабзавотни бирламчи қайта ишлаш, 27200 тонна маҳсулотни музлаткичларда сақлаш имконияти вужудга келди. 2021 йилда режалаштирилган янги лойиҳаларни амалга оширилиши натижасида 71900 тонна маҳсулотни бирламчи қайта ишлаш, 33800 тонна маҳсулотни музлаткичларда сақлаш ва аҳолига йил давомида етказиб бериш имконияти яратилди. вилоятда ташкил этилган мева-сабзавотчиликка ихтисослашган агрокластерларга маҳсулотни етиштириш ва харид қилиш учун 409 426 млн сўм, интенсив боғ ва токзорлар ташкил этиш учун 286 652 млн.сўм, қайта ишлаш ва сақлаш қувватларини ишга тушириш учун 42 197 млн.сўм сармоя талаб этилиб , бу маблағлар ички имкониятлардан ва банк кредитлари ҳисобидан амалга оширилмоқда.[13] бунда лойиҳа ташаббускорларига барпо этилган интенсив боғ ва қурилган иссиқхоналар ўзбекистон республикаси вазирлар маҳкамасининг «оилавий тадбиркорликни қўллабқувватлаш дастурлари доирасида боғдорчилик, узумчилик ва иссиқхона хўжалигини ривожлантириш чора-тадбирлари тўғрисида» 2020 йил 30 январдаги 52-сон қарори билан тасдиқланган интенсив боғ ва токзорлар барпо этиш, иссиқхоналар қуриш ҳамда уларни аҳолига лизинг ва кредит шартлари асосида бериш тартиби тўғрисида низомга мувофиқ лизинг ва кредит шартлари асосида берилмоқда. андижон вилоятида мева-сабзавотчилик кластерлари корхоналарининг шаклланиш кўрсаткичлари, (2022й.)[13] йил лар агрокластер сони жами мевасабзавот майдони , гектар шу жумладан агрокластерга бириктирилга н гектар шундан жами ер майдониг а нисбатан қамраб олиш,%да агрокластер нинг ўзида фермер хўжаликларида сони майдон и,гектар 2019 16 27441 10858 1384 1316 9115 39,5 2022 4 8238 1958 584 212 1733 23,7 жами : 20 35679 12816 1968 1528 10848 35,9 келтирилган жадвал маълумотларидан кўриниб турибдики, андижон вилоятида 2019-2022 йилларда мева-сабзавотчиликка ихтисослашган агрокластерлар сони 20-тага етиб, уларга бириктилган экин майдони 12 816 гектарни, шулардан агрокластерлар балансида бўлган экин майдони 1 968 гектарни ташкил этди. http://lex.uz/docs/4719597 http://lex.uz/docs/4719597#4721969 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 143 www.americanjournal.org андижон вилоятида мева сабзавот ва узум етиштириш кўрсаткичлари[11] т/р кўрсаткичлар ўлчов бирлиги 2017й. 2018й. 2019й. 2020й. 2021й. 1 мева-резаворлар тонна 568 706 606 053 633 364 634 048 657 480 ш.ж.-уруғлик тонна 265 086 308 602 302 356 303 794 х -данакли тонна 227 777 216 586 249 719 229 386 х -ёнғоқ мевали тонна 18 722 28 255 28 975 41 604 х -субтропик тонна 55 380 50 982 46 804 54 079 х -резавор мевалар тонна 1 345 407 1 568 1 916 х 2 сабзавот тонна 1478 128 1570 917 1596891 1 611 054 1 645 197 3 узум тонна 78 849 71 247 77 630 76 817 80 896 келтирилган жадвал маълумотларидан кўриниб турибдики, андижон вилоятида 2017-2021 йилларда мева резаворлар етиштириш 568 706 тоннадан 657 480 тоннага ёки 115,6 фоизга ,сабзавот етиштириш 1478 128 тоннадан 1645 197 тоннага ёки 111,3 фоизга, узум етиштириш 78 849 тоннадан 80 896 тоннага ёки 102,6 фоизга ортди. умуман бугунги кунда агрокластерлар фаолиятини тартибга солиш бўйича ўзбекистон республикаси президенти ва вазирлар маҳкамасининг қарорлари қабул қилинган бўлиб, муайян кластерларни ташкил этиш ва уларга ер ажратиш бўйича меъёрий ҳуқуқий хужжат ҳисобланади. шу бир қаторда амалда фаолият юритаётган агрокластерларнинг таҳлили соҳада қуйидаги тизимли муаммолар мавжудлигини кўрсатмоқда: • агрокластерларни тартибга солувчи ягона норматив-ҳуқуқий ҳужжатни қабул қилиш ва кластерларнинг ҳуқуқий мақоми белгилаш мақсадга мувофиқ деб ҳисоблаймиз; • агрокластерларни ташкил этиш, уларни танлаб олиш мезонлари, шунингдек, уларга ерларни ажратишнинг ягона ва шаффоф механизмларини такомиллаштириш зарурлиги; • ўзбекистонда агрокластерларни шакллантириш тизимини хориж амалиёётидан келиб чиқиб, такомиллаштириш зарурлиги ва аграр тармоқда ахборот-маслаҳат хизматлари тизимининг кенг жорий этиш зарурлиги, соҳанинг ривожланишини мустаҳкамлашга лаёқатли ҳамда малакали мутахассисларни жалб этиш зарурлиги; • агроластер тизимида ўзаро ҳамкорлик муносабатларини ўрнатиш ва эркин шартномавий муносабатларни амалга ошириш, хўжалик юритишда жахон амалиётидаги тажрибалардан фойдаланган ҳолда бошқаришни такомиллаштириш мақсадга мувофиқ деб ҳисоблаймиз. фойдаланилган адабиётлар рўйхати 1. ш.мирзиёев. эркин фаровон, демократик ўзбекистон давлатини биргаликда барпо этамиз т.: ўзбекистон, 2016. 15-б. 2. ўзбекистон республикаси президентининг 2020й. 24 январдаги олий мажлисга мурожаатномаси. https://www.norma.uz/bizning_sharhlar/2020_yilgi_murojaatnoma. 3. ўзбекистон республикаси президентининг 2022 йил 28 январдаги пф-60-сонли фармони билан тасдиқланган 2022 2026 йилларга мўлжалланган " янги ўзбекистоннинг тараққиёт стратегияси".lex/uz https://www.norma.uz/bizning_sharhlar/2020_yilgi_murojaatnoma_prezidentning_maruzasidan_asosiy_tezislar american journal of business management, economics and banking volume 12 may, 2023 p a g e | 144 www.americanjournal.org 4. ўзбекистон республикаси президентининг 2020й. 24 январдаги олий мажлисга мурожаатномаси https://www.norma.uz/bizning_sharhlar/ 5. .ўзбекистон республикаси президентининг 2019 йил 23 октябрдаги пф-5853-сонли фармони билан тасдиқланган "ўзбекистон республикаси қишлоқ хўжалигини ривожлантиришнинг 2020 2030 йилларга мўлжалланган стратегияси" lex/uz 6. ўзбекистон республикаси президентининг 2019 йил 11 декабрдаги пқ-4549-сонли "мева-сабзавотчилик ва узумчилик тармоғини янада ривожлантириш, соҳада қўшилган қиймат занжирини яратишга доир қўшимча чора-тадбирлар тўғрисида"ги қарори.lex/uz. 7. ўзбекистон республикаси президентининг 2022 йил 28 январдаги пф-60-сонли фармони билан "2022 2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси"lex.uz. 8. саидов м.ҳ, очилов и.с. мева-сабзавотчиликда замонавий кластерларни шакллантириш масалалари, уларнинг моҳияти ва ўзига хос хусусиятлари. ўқув-услубий қўлланма. – тошкент: тдау, 2019. 5бет. 9. м. портер конкуренция / майкл э. портер; пер. с англ. – м.: вильямс, 2006. – 256 с. 10. м. с.юсупов "агросаноат интеграцияси" ўқув қўлланма. т. 2015й. 49-363 б. 11. ўзбекистон республикаси статистика қўмитаси маълумотлари.stat.uz 12. ўзбекистон миллий ахборотлар агентлиги.http://uza.uz/posts/ 13. андижон вилоят қишлоқ хўжалиги бошқармаси маълумотлари асосида муаллиф ишланмаси 14. ўзбекистон республикаси қишлоқ хўжалиги вазирлиги расмий веб-сайти. https://www.agro.uz/agroklasterlar-va-kooperatsiyalar/#1627303540327-5870b9c2-be30. https://www.norma.uz/bizning_sharhlar/2020_yilgi_murojaatnoma_prezidentning_maruzasidan_asosiy_tezislar american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 12 www.americanjournal.org methodology of using different social forms in foreign language classes iroda jakbarova badriddinʼs daughter namangan state institute of foreign languages english language, +998884669292 a b s t r a c t k e y w o r d s this article discusses the methodology of using different social forms in foreign language classes, in particular, individual work, pair work, small group work, frontal work, team work. forms of social work, individual work, pair work, work in small groups, frontal work, team work, types of individual tasks, tasks for pair work, tasks for small group work, types of tasks for frontal work, writes tasks for team work. songi yillarda chet tillarini o`rganishga qiziqish sezilarli darajada oshdi.bunga davlatimizning mustaqillikdan keyin chet tilini rivojlantirishga qaratilgan farmon, chora va tadbirlari ham sabab bo`lmoqda.bu esa biz chet tili o`quituvchilari oldiga talabalarning chet tiliga qiziqishini oshirish uchun chet tili darslarida turli innovation metodlardan,texnik vositalardan foydalanishni taqoza etmoqda.shunday metodlardan biri bu dars jarayonida rolli o`yinlardan foydalanish -dir. rolli o`yinlar bu real hayotimizdagi turli situasiyalarni chet tili o`rganish jarayonida qo`llashdir.bu metod dars jarayonida til muhitini yaratishga yordam beradi.men dars jarayonida rolli o`yinlardan juda ko`p foydalanaman. dars jarayonida qiyinchiliklar odatda darslar o'quvchilar uchun zerikarli bo'lganligi sababli paydo bo'ladi. o'qituvchilar va talabalar darsni tashkillashtirishda odatdagidek va an'anaviy avtoritar o'qitish bilan mashq qilishda qiyinchiliklarga duch kelmoqdalar. markazlashtirilgan o'quv shaklini (yoki ijtimoiy shaklni) amalga oshirish o'quvchilarning qo'liga muhim vakolatlarni beradi, ularni faollashtiradi va shu sababli ham ko'plab intizomiy qiyinchiliklar yuzaga kelmaydi. davriy nashrning maqsadi — chet tili mashg’ulotlarida turli ijtiomoiy shakllarning usullarini o'rgatish va bunga misollar berishdir. «ijtimoiy shakl o'qituvchining o'quvchilarni o'rganishini yoki talabalarni o'zlarini tashkil qilish usullarini anglashidir. shuning uchun, ma'lum interaktiv yulduz turkumlari bilan tavsiflangan «tashkiliy shakllar» haqida gapirish mumkin». mashg’ulotlardagi ijtimoiy shakllarni ishlatish umuman ikkita yo'nalishda: qo'shimcha, to’ldiruvchi yoki simmetrik bo'lishi mumkin. qo’shimcha, to’ldiruvchi — bunda o'qituvchi sinfda hukmronlik qiladi va xonada talabaning harakatini cheklaydi o'quvchining pozitsiyasi va o'qituvchisi o'rtasidagi nisbiy muvozanat mavjud bo'lgan o'zaro ta'sirlar simmetrik deb american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 13 www.americanjournal.org nomlanadi. adabiyotda keltirilgan ta'limning eng muhim ijtimoiy shakllari quyidagilardir: · − yakka tartibda ishlash, − juft boʼlib ishlash, − kichik guruhda ishlash, − frontal ishlash, − jamoa boʼlib ishlash. yakka tartibda ishlash — bu o'qituvchi tomonidan tayyorlangan alohida bosqich, bu o'quvchining o'z vazifasini bajarishi yoki o'qituvchining vazifasini bajarishi kerak, bu esa sinfdan tashqarida bajarilishi kerak. ushbu ijtimoiy shaklda hech qanday shovqin yo'qligi sababli yakka tartibda ishlash bu ijtimoiy shakldan emasmi degan qonuniy savol berilishi ham mumkin. yakka tartibda ishlash turli yo'llar bilan qilinishi mumkin. misol uchun, agar o'qituvchi harakat qilsa maktab ishlarida talabalar o'rtasida biron-bir shov-shuvni oldini olish uchun. yakka tartibda ishlash o’qituvchi tomonidan tashkillashtiriladi. ushbu ijtimoiy shakl, avvalo, o'qituvchi talabani o'z kasbini (masalan, o'quv cd-rom bilan ishlash) yordamisiz yakka o'zi topshirishni talab qilganida ishlatiladi. bu o'quvchining konsentratsiya va chidamlilik qobiliyatini talab qiladi va o'quvchining o'z ishiga bo'lgan ishonchini kuchaytiradi va unga o'z o'qitish tezligini tanlash imkonini beradi. bunda o'qituvchi ish tartibini qo'yadi, uni nazorat qiladi va oxirida natijalarni ko'rib chiqadi. yakka tartibda ishlashni kamchiligi shundan iboratki. ko'pincha talabalar o'qituvchining aniq maqsadlari tufayli o'z ijodlarida ijodiy rivojlana olmaydi. hamkorlik ishida ikkinchi sherik bilan birgalikda vazifa ishlab chiqiladi. bu erda ikki sherik o'rtasidagi o'zaro munosabatlar davom etadi. ushbu ijtimoiy shakl maktabda turli xil foydalanishga ega. bir tomondan, bu ijtimoiy shakl sherik bilan birgalikda tajriba o'tkazishga yordam beradi va boshqa tomondan, u turli mavzularni birgalikda ko'rib chiqish va keyin ularni katta guruhga taqdim etish imkoniyatini taqdim etadi. juft bo’lib ishlash chet tili darslarida juda qulay iftimoiy shakl hisoblanadi. agar o’quvchi juft bo’ilb ishlasa chet tili darslarida notanish matnni muhokama qilishi, turli dialoglar o’ynashi, lug’at savol javoblarini o’tkaza oladilar. kichik guruhda ishlash — bu vazifalar bir guruh talabalar tomonidan birgalikda ishlab chiqiladigan yoki echiladigan ijtimoiy shakl. guruhlarning shakllanishi, odatda, talabalarning orasida ta'lim jarayoni markazslashib, tobora nosimmetrik bo'ladi. biroq, bu ijtimoiy shakl klassik jamiyatning yuksak talablariga ega va nisbatan ziddiyatli hisoblanadi. shuning uchun ishlashning mumkin bo'lgan maxsus shartlari talab qilinadi. ehtimol, eng katta muammo — talabalarning kommunikativ malakasi. ushbu ijtimoiy shaklda talabalar boshqa g'oyalar, fikrlar va fikrlarni qabul qilishni o'rganishlari va natijalarini rejalashtirishlari kerak. bu o'qituvchi aralashuv va muvozanatni saqlashi kerak bo'lgan keskinlikka olib keladi. kichik guruh ishlashi, o'qituvchiga ushbu jarayonni yaxshilab rejalashtirilishini talab qiladi. mavzular va vazifalar aniq tarzda shakllantiriladi va guruhlarni shakllantiradi. nizolarning oldini olish uchun guruh ishini muayyan usullarga muvofiq boshlash va amalga oshirish tavsiya etiladi. katta guruh mashg'ulotlarida o'zaro muloqot jarayoni nafaqat o'qituvchi va talaba, balki faqat talabalar o'rtasida ham amalga oshiriladi. o'quv dasturi o'qituvchilardan savollar va o'quvchilarning javoblari asosida ishlab chiqilgan. bu ishtirokchilar doimo hamkorlik qilishlari kerakligi ta'siriga ega. savollar o'quvchilar doimiy ravishda bilimdon, umumiy bilim va mantiqiy fikrlashni doimiy ravishda biriktirishi kerakligiga qaratilgan. o’tkazilgan darslar ancha jonli bo'lib, talabalarning ta'limdan qoniqish darajasi yanada to'yintiriladi va o'qituvchining yordami bilan ularning bilimlari noma'lumlardan tortib tobora yoyilib boradi. har bir ijtimoiy shaklning afzalliklari bor, lekin u o'qituvchi qanday va qachon ijtimoiy shaklni boshlaganiga bog'liq. sinfda turli xil ijtimoiy shakllarni maqsadli ishlatish o'quv jarayoniga bir tuzilishni beradi. ijtimoiy shakllardagi o'zgarishlar va o'zaro ta'sirlar shaklidagi o'zgarish o'quvchilarning e'tiborini yanada oshiradi va shuning uchun o'quv natijalarini yaxshilashga olib keladi. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 14 www.americanjournal.org bundan tashqari, talabalar to'g'ri ijtimoiy shakllarni o'z vaqtida foydalanishga ishonadilar. bu nafaqat muloqot qobiliyatlarini, balki talabalarning ijtimoiy ko'nikmalarini ham rivojlantiradi. shuning uchun o'qituvchi ijtimoiy shakllarni tanlashda muhim rol o'ynaydi foydalangan adabiyotlar 1. g. becker. durchführung von unterricht. in: handlungsorientierte didaktik. teil ii. weinheim und basel: beltz verlag, 1991. 2. аллаярова, р. р. chet tili darslarida turli ijtimoiy shakllardan foyydalanish metodikasi / р. р. аллаярова, рашида 3. гулимматова. — текст : непосредственный // молодой ученый. — 2019. — № 24 (262). — с. 525-527. — url: https://moluch.ru/archive/262/60438/ (дата обращения: 08.10.2022). american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 60 www.americanjournal.org analysis of the development of the world monetary system in the period after the covid -19 pandemic nazaralieva shohsanam ilkhom kizi 2-year master's degree tashkent financial institute e mail : shohsanamnazaralieva @ gmail . com yuldasheva umida scientific adviser phd a b s t r a c t k e y w o r d s the article presents the prospects for the development of the world economy, factors contributing to the transition of the international, regional and national currency systems to a new stage. the basic limitations of the process of development of the global monetary system in post-covid conditions ( covid -19 pandemic) are described. currency system, monetary policy, analysis and forecasts, crisis. introduction the rollout of the covid-19 pandemic in central asia in early 2020, starting in central asia, caused massive social and economic disruption in the region, which at the time was still recovering from the 2008-2009 global financial crisis and 2014-2014 commodity price shocks. 2015 years. economic performance in the aftermath of these shocks showed that the economic and cyclical growth trajectories that characterized most countries in the region before the pandemic began to recede: slowing trend gdp growth, slowing productivity growth, worsening inequality, and slowing convergence with oecd countries and the eu (oecd , 2020). the reduction in the growth potential of mineral resources, especially hydrocarbon production, has also affected countries that are not large exporters of fuels and metals, such as kyrgyzstan and tajikistan. for years they have exported surplus labor and received large remittances in return. under the new conditions, their economic well-being and stability have become highly dependent on the state of the labor market in their richer neighbors, especially in russia and, to some extent, in kazakhstan. thus, when the covid-19 pandemic hit the region, the countries of central asia were already trying to regain momentum and lay the foundations for new growth patterns. first through trade routes, and then due to the emergence of the virus itself. thus, the countries of central asia were particularly vulnerable to the pandemic and its shocks due to their underlying structural weaknesses. containment measures in most countries have meant closing businesses, restricting movement and temporarily closing borders. however, the impact on the regional economy has been particularly strong due to trade disruptions, weak global demand for energy and commodities, and travel restrictions that have american journal of business management, economics and banking volume 11 april, 2023 p a g e | 61 www.americanjournal.org played a major role in regional growth. the situation is complicated by the fact that its recovery largely depends on factors beyond the control of regional governments. central asia may be geographically remote, but its economic growth is closely linked to demand from many external demand centers around the world (figure 1). fig.1. real gdp growth in central asia and key regions1 so when the financial crisis of 2008 rocked the global financial system, the authorities took drastic steps to stabilize the financial system. in the us, the epicenter of the crisis, liquidity was boosted significantly by massive quantitative easing and currency swaps between central banks, in addition to government bailouts of crisis-hit banks. the legitimacy of the international monetary system has been strengthened by expanding the decision-making process from the g7 to the g20. the next step, of course, was regulatory reform to prevent future crises. to this end, more powers have been delegated to the financial stability board (fsb), the international body that defines and recommends strong regulatory and supervisory measures for the financial sector. for example, the fsb is pushing for higher capital and liquidity requirements for banks and limiting overall leverage ratios. central banks around the world have become the first line of defense, taking steps to keep the global financial system and global economy stable. first, they have liberalized their monetary policy significantly, cutting interest rates to record lows in advanced economies. half of emerging market and low-income central banks have also cut their interest rates. the impact of lower interest rates will be reinforced by central bank advice on the future monetary policy trajectory and an expansion of asset purchase programs. second, central banks have provided additional liquidity to the financial system, for example through open market operations. third, a number of central banks have agreed to provide us dollar liquidity through swap-based credit lines. finally, central banks have revived the programs used during the global financial crisis, and also launched a series of new large-scale programs, including the purchase of risky assets such as corporate bonds. by entering these markets as a “buyer of last resort” and helping limit upward pressure on the cost of credit, central banks help households and businesses maintain access to affordable credit (figure 2). to date, central banks have announced plans to provide at least $6 trillion in liquidity, 1world bank, 2021 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 62 www.americanjournal.org including loans and asset purchases, and have indicated their intention to take more extensive action if circumstances warrant. fig.2. unprecedented portfolio outflows in both size and speed (cumulative total portfolio flows of non-residents as a percentage of gdp)2 investor sentiment has stabilized in recent weeks as a result of these measures to contain the postpandemic downturn. tensions in some markets have eased somewhat, and risk asset prices have rebounded from the recent decline. however, investor sentiment remains fragile and the global financial environment remains much tighter than at the beginning of the year. however, a number of important reforms, such as the fsb's attempt to extend supervision to non-bank financial intermediaries, are thwarted by opposition from the financial community. in addition, in the us, the strict regulatory regime that was put in place after the crisis has since been eased. meanwhile, the massive monetary easing that supported the global economy has created new risks. long-term ultra-low interest rates encouraged short-term speculation without boosting long-term productivity. between 2000 and 2020, total asset values have tripled and global financial assets and liabilities have doubled in value compared to real assets, according to the mckinsey global institute. at the same time, the financial sector and wealth ownership are becoming increasingly concentrated. today, a new series of shocks (pandemics, rising inflation and interest rates, the situation in ukraine) threaten to trigger new shocks. the intergovernmental group of 24 on international monetary affairs and development has identified developing countries' debt-servicing difficulties, rising inequality, rising inflation and heightened risks to financial stability as pressing issues. attempts to address these pressing issues have been mostly semi-serious. for example, in august last year, the imf approved a $650 billion general special drawing right (sdr: fund's reserve assets). this greatly expanded the resources of the imf, while the demand for funds increased sharply. the us dollar-based system undoubtedly worked well during the largely peaceful post-war period and during the tense cold war era, promoting globalization, trade, finance, and overall economic growth. however, it was not designed to address the complex challenges of climate change, pandemics, rapid technological change, rising inequality and long-term demographic change. 2bloomberg finance l.p.; epfr global; haver analytics; institute of international finance; and imf staff calculations american journal of business management, economics and banking volume 11 april, 2023 p a g e | 63 www.americanjournal.org the world was promised a neutral international monetary system, guaranteed by a stable reserve currency issued by the world's hegemonic states. however, when the sanctions turned the us dollar into a weapon, it became clear that the current system was far from neutral. moreover, the us is no longer the world's hegemonic power. now the world order seems destined to split into two blocs, each with its own security structures, production chains, technologies and financial systems. in any case, if the currency of any one country begins to function as a global currency, there will be at least six types of instability: environmental, economic, social, financial, political and ideological. to create a more stable international monetary system, a transition to a truly global currency is needed: the sdr is the most obvious candidate, endorsed by the 2011 palais royal initiative. however, the united states, which has the most influence on the imf, will not agree to the transformation of the imf into a quasi-central bank with supranational currency issuing powers, as this would undermine the "exorbitant privileges" of the united states. even if there is no national currency to replace the dollar in the foreseeable future, ways to reduce the dominance of the dollar as a means of payment and savings include, firstly, the creation and expansion of digital currencies and, secondly, non-dollar payment systems (replacing fedwire, swift , euroclear , etc.). american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 96 www.americanjournal.org “trends of innovative development in the republic of uzbekistan” yuzbaeva makhfuza zakirjanovna, senior teacher mukumova nargis nuriddinovna, senior teacher charshanbieva bakhtiniso ural qizi. magistrant samarkand state university of architecture and construction samarkand, uzbekistan a b s t r a c t k e y w o r d s this article examines the role of innovation in the economic development of the country. studied legal acts aimed at the development of domestic innovations. innovation, innovative development, science, innovative products. introduction in the modern economy, the role of innovation is increasing. this is due to the fact that in a market economy, innovations are a weapon of competition, since innovation leads to a decrease in costs, to a decrease in prices, to an increase in profits, to the creation of new needs, to an inflow of money, to an increase in the image (rating) of a manufacturer of new products, to the opening and capture of new markets, including external. as you know, innovation is the result of creative and investment activities aimed at the development, manufacture and distribution of new types of goods, services and technologies, organizational forms at the firm level. the purpose of innovation is to increase the competitiveness of the company, goods and services and thereby increase the profit of the company. the practice of economically developed countries shows that sustainable economic growth in the context of global economic competition is due to a high level of implementation of new technologies and developments in production. according to various estimates, from 70 to 100% of production growth in these countries is today provided through the use of innovations [5]. note that in economically developed countries, the development of innovative activities is stimulated by the government by creating the necessary economic, financial, organizational and regulatory conditions. as the experience of using the resources of scientific and technical information, innovation policy shows. if, on average, the cost of basic research per unit, then the cost of applied research and development works 10 times higher. the president of the republic of uzbekistan shavkat mirziyoyev, speaking with a message to the parliament of the country, noted that “today we are moving to the path of innovative development american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 97 www.americanjournal.org aimed at fundamentally improving all spheres of life of the state and society… innovation means the future. if we start building our great future today, we must do it, first of all, on the basis of innovative ideas, an innovative approach.1 world experience convincingly proves that innovative technologies have become the most important means and condition for the development of modern production and the economic potential of the state. they combine the advanced achievements of science, the possibility of modernizing production, mastering the production of new types of products, its mass distribution and market sales. main part such scientists as f.kotler, j.schumpeter, p.drucker, g.mensch, m.porter, t.kuhn were engaged in the study of innovative development as a scientific research. among the russian researchers in this area, one can single out such scientists as a.g. gryaznova, l.i. agalkina, a.a. dynkina, v.v. kulikova, i.n. myslyaeva. our domestic scientists olimjonov a.u., voronin s. gulyamov s.s., abdullaev a.m. are also dealing with issues related to the features of the innovative development of the economy.2 today, most countries of the world set themselves the task of transitioning to an innovative economy based on knowledge, in which the creation and use of the results of scientific and technical activities are the main conditions for sustainable economic growth. therefore, in sovereign uzbekistan, since the first days of independence, much attention has been paid to the development of domestic science, leading scientific schools and innovative research. these processes are regulated at the legislative level, which can be seen in a number of laws and decrees of the president of the republic of uzbekistan, and relevant government decrees adopted in the field of innovative development. after achieving independence, one of the first regulatory documents in this area are the decree of the president of the republic of uzbekistan "on state support for science and the development of innovation" dated july 8, 1992 and the resolution of the cabinet of ministers "on measures for state support for the development of science and innovation" dated 21 july 1992, which created the basis for stimulating the country's innovative development. in accordance with the decree of the president of uzbekistan "on measures to improve the coordination and management of the development of science and technology" dated august 7, 2006, reforms in the field of management and financing of domestic science, focusing its efforts on priority areas for the country were continued. thus, the decree of the president of the republic of uzbekistan “on additional measures to stimulate the introduction of innovative projects and technologies into production” dated july 15, 2008, was of great importance for the development of science and innovation, in accordance with which structural reforms were carried out in the system research management. [3] the gradual development of the science management system made it possible to improve the mechanism for promoting research: from fundamental and applied developments to innovative work aimed at their practical application. annual republican fairs of innovative ideas, technologies and projects have become one of the important tools for the implementation, as well as commercialization of research results, ensuring a closer connection between science and production, manufacturers of 1 message of the president of the republic of uzbekistan to the oliy majlis of december 22, 2017. 2 mukumova n. n., abdukhalikov zh.a. “peculiarities of innovative development of uzbekistan” . problems of architecture and construction (scientific and technical magazine), 2022, № 1(part 2), p.122-124 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 98 www.americanjournal.org innovative products and its consumers. in the recent years, more than 4,000 innovative ideas, developments and technologies have been demonstrated at the fairs. more than 3 thousand contracts were signed with a total value of more than 110 billion soums. as a result, more than 1.0 trillion rubles worth of new products were produced. soums. particular attention is paid to the creation of new research and innovation centers. so. for example, over the past 5 years, a number of scientific innovative institutions of a new type have been created in uzbekistan: the interdepartmental center for genomics and informatics, the international institute of solar energy with the participation of the asian development bank, the educational and scientific center of high technologies, created jointly with the university of cambridge, the uzbek-japanese youth innovation center at the tashkent state technical university named after islam karimov. in order to train personnel for the innovative economy, a number of branches of leading universities in our country have been created and are actively operating. results and discussion in order to accelerate the development of the country based on modern achievements of world science, innovative ideas, developments and technologies, as well as the consistent implementation of the tasks identified by the action strategy in five priority areas of development of the republic of uzbekistan in 2017 2021, the strategy for innovative development of the republic of uzbekistan for 2019 was approved 2021 years. [2] the main objectives of the strategy to achieve the main goal: 1. entry of the republic of uzbekistan by 2030 into the 50 leading countries of the world according to the rating of the global innovation index; 2. improving the quality and coverage of education at all levels, developing the system of continuous education, ensuring the flexibility of the training system, based on the needs of the economy; 3.strengthening the scientific potential and efficiency of scientific research and development, creating effective mechanisms for integrating education, science and entrepreneurship for the wide implementation of the results of research, development and technological work; 4. increasing the investment of public and private funds in innovation, research, development and technological work, the introduction of modern and efficient forms of financing activities in these areas; 6. ensuring the protection of property rights, creating competitive markets and equal conditions for doing business, developing public-private partnerships; 7. creation of a sustainable socio-economic infrastructure. as a result of the implementation of the strategy for innovative development of the republic of uzbekistan for 2019-2021, great success has been achieved in ensuring and stimulating innovative and technological progress in the sectors of the economy and the social sphere, including agriculture, energy, construction, education, healthcare. in particular: the republic has risen by 36 positions compared to 2015 in the ranking of the global innovation index, which is assessed by 81 indicators; the volume of annual funds allocated from the state budget for innovation and scientific spheres increased by 3 times compared to 2018 and reached 1.5 trillion soums; if in 2018 the number of young scientists was 6.5 thousand, then this figure in 2022 reached 10.8 thousand people, that is, an increase of one and a half times is ensured; american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 99 www.americanjournal.org over the past four years, the number of specialized institutions for financing innovative activities (innovation funds, venture organizations and others) has been increased to 28 units; held annually since 2018, the international week of innovative ideas – innoweek.uz is turning into an innovative technology platform that brings together foreign scientific and innovation centers, investment funds, technology agencies, technology parks and business incubators on the way to one goal. at the same time, the degree of commercialization of scientific and innovative developments, the level of cooperation between science, education and industry in the real sector of the economy remain relatively low. summing up the reasoning, it is possible to interpret innovative development region as a socio-economic process, which is based on the formation of a regional innovation system capable of increasing innovative potential of the region and its implementation through the creation of innovative goods and services. the innovative development of the region is based on the following principles: – innovative development of the region is carried out in the conditions of the regional innovation environment; – the process of innovative development of the region is formalized by building regional innovation system; the basis of the innovative development of the region is the ability for innovative thinking and perception of both the individual and the whole society; the effectiveness of the innovative development of the region directly depends on regional innovation culture, i.e. an extended system of motivation innovative activity; the state innovation policy has a controlling effect on the innovative development of the region; the ability of the region to innovative development is characterized by the level of regional innovation potential. according to these principles, it is possible to build an organizational and economic model of the innovative development of the region, taking into account the peculiarities territorial and economic interests, the specifics and level of development of the region, the ratio of technological structures of the economy, in order to increase the competitiveness of the economy of the region as a whole. thus, the successful implementation of measures in the field of innovation is possible only on the basis of integration of efforts and ensuring the joint activities of the state, economic sectors, large enterprises, as well as scientists and university employees. by solving these urgent problems, a competitive innovation environment and scientific and production integration will be formed in the country with the mutual interest of the participants in the innovation process manufacturers, employees of innovative structures and scientists. references 1. message of the president of the republic of uzbekistan to the oliy majlis of december 22, 2017. 2.decree of the president of the republic of uzbekistan "on approval of the strategy for innovative development of the republic of uzbekistan for 2019 2021" dated september 21, 2018 no. 5544 3. decree of the president of the republic of uzbekistan "on state support of science and development of innovation activity" dated july 8, 1992 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 100 www.americanjournal.org 4. decree of the president of the republic of uzbekistan “on additional measures to improve the mechanisms for introducing innovations in industries and sectors of the economy” dated 07.05.2018, pp-3698 5. salikhov sh. in uzbekistan, an effective mechanism for introducing scientific developments into the real sector of the economy is being developed. electronic resource: http://uzscience.uz/ru/linkpages/view/id/2. 6. mukumova n. n., abdukhalikov zh.a. “peculiarities of innovative development of uzbekistan” . problems of architecture and construction (scientific and technical magazine), 2022, № 1(part 2), p.122-124 7.http://uza.uz/ru/politics/shavkat-mirziyeev-formirovanie-u-nashego-naroda-innovatsionn-02-122017. 8. https://mfa.uz/ru/?voice=y american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 67 www.americanjournal.org human capital reporting and market capitalization of pharmaceutical firms in nigeria friday baridoo, leyira c. micah fineface n. akani department of accounting, faculty of management sciences, university of porthacourt email: fridaybaridoo@yahoo.com: leyira.micah@uniport.edu.ng phone: 08034441215, 08033542244 a b s t r a c t k e y w o r d s this study examined the relationship between human capital reporting and stock market performance of quoted pharmaceutical companies in nigeria for a period of 10 years (2012-2021). purposive sampling technique was used to collect secondary data for the study from annual reports and accounts of seven (7) quoted pharmaceutical companies in the nigerian exchange group (ngx). ordinary least square and multiple linear regression statistical tools were used to analyze the data with the aid of e-view version 10. the proxies for the independent variable; human capital reporting are; reporting salaries and wages of employees, reporting retirement benefit cost, reporting other employee cost, while market capitalization for the dependent variable stock market performance. the stationarity test shows that the variables are stationary at first difference. the co-integration test proved the presence of a long run relationship. the granger causality test proved no causality between the variables and in testing the hypotheses the independent variables; reporting salaries and wages of employees, reporting retirement benefit cost and reporting other employee cost, were statistically significant at 5% level of significance. the study revealed that human capital reporting have positive and statistically significant relationship with the dependent variables; market capitalization (eps), the study therefore recommends that adequate reporting and suitable remuneration/ compensation plans should be devised to encourage the acquisition, motivation and retention of valuable, unique, inimitable and well organized human assets who have the greatest potential to drive the performance of pharmaceutical firms in the stock market. human capital reporting. market capitalization. pharmaceutical. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 68 www.americanjournal.org introduction human resources are viewed as vital assets of an organization considering their significance in contributing to organizational performance, market competitiveness and long-term sustainability. in the increasingly globalized human society, there is increased competition among firms and this accentuates the need for firms to strategically develop lasting competitive advantage. this is further re-affirmed by the fact that global economies are gradually moving from being industry based to knowledge based and this shift to a knowledge based economy has elevated human resources to an elevated plain since humans are the subject for knowledge creation and advancement (collinge & staines, 2009). human resource entails an individual who possesses skills, talents, knowledge, time, and knowledge with which he adds value to an organization (osibanjo & adeniji, 2012). the importance of human resources emphasizes the increased popularization of human resource management in several organizations. the organizational acts that are targeted towards providing for and coordinating the human resources of a firm is what human resource management entails (bakator, petrovic, boric, & dalic, 2019). the pertinence of human resource management has become essential to effectively harness the human resource of a firm and this is guided by four major models: encouraging employees to demonstrate a high level of commitment to assigned organizational tasks, ensuring that only quality employees that could offer quality services are employed to enhance the production of quality goods and services, ensuring employee flexibility to effectively embrace organizational changes, and integrating organizational goals into the key policies of a firm to enhance its perceptibility among employees (osibanjo & adeniji, 2012). the objective of this paper is to determine the relationship between human capital reporting and market capitalization of pharmaceutical firms in nigeria. theoretical framework the fact that companies do not disclose all information about their human capital show that insider information probably exist which means there is a change that the nigeria exchange group is not completely efficient. this is in line with the adaptive market hypothesis which suggests that humans are not completely rational in their behavior and do not always choose the most optimal investment decisions, which changes the conditions on the market. if the market conditions on the nigeria exchange group (ngx) points at information asymmetry and the adaptive market hypothesis, it means that it is possible to identify and find empirically evidence for a pattern that says that prices on stock are partly affected by the human capital in the company, which makes it possible for rational investors to gain abnormal return and outperform the market, for instance by utilizing such pattern as an investment strategy. from the shareholder perspective, voluntary human resource disclosures are based on the agency and signaling theories. agency theory the agency theory of corporate governance was put forward by alchian and demsetz (1972) and jensen and meckling (1976). they argued that firms can be regarded as a nexus for a set of contracting relationships among individuals, whereas classical economics regards firms as single-product entities with the purpose of maximizing profit. learmount (2004) suggests that firms can be explained as contracts that are repeatedly negotiated by different individuals wishing to maximize their own profit. https://www.sciencedirect.com/topics/economics-econometrics-and-finance/corporate-governance american journal of business management, economics and banking volume 14 july, 2023 p a g e | 69 www.americanjournal.org agency theory explains the behaviour of a firm from the perspectives of various contracts between different parties. shareholders who contribute funds for a firm to operate are not regarded as the owners of the firms; they are the risk takers of the firm. signaling theory signaling theory explains how signals management success or failure is communicated to the owner. signal theory related to information asymmetry. the positive thing in signaling theory is where companies that provide good information will set them apart with companies that do not have “good news” by informing the market about their condition, a signal of good future performance the future provided by companies whose past financial performance is not good will not be trusted by the market (wolk and tearney in dwiyanti, 2010). signaling theory is one of the pillar theories in understanding financial management. in general, the signal is interpreted as a signal made by the company (manager) to outside parties (investors). these signals can take the form of various forms, both those that can be directly observed, or which must be studied more deeply to be able to find out. regardless of the form or type of signals issued, they are all intended to imply something in the hope that the market or external parties will make a change in the valuation of the company. human capital accounting human capital or human resources accounting (hra) was introduced in the accounting literature in the 1960s (flamholtz, 1985), though support for the idea of accounting for human resource values can be found before this period (sackmann, flamholtz & bullen, 1989; grojer & johanson, 1996). hermanson (1964) published his pioneer work concerning the valuation of human assets, and the term “human resource accounting” was used for the first time by brummet, flamholtz and pyle in 1968. from this period, numerous articles have been published in this area. the american accounting association’s committee (1973) on human resource accounting defined hra as “the process of identifying and measuring data about human resources and communicating this information to interested parties”. it provides information about human resource costs and values, serves to facilitate decision-making, and motivates decision-makers to adopt a human resource perspective (sackmann et al.,1989). grojer and johanson (1996) express the management orientation of hra even more clearly in the assertion that hra concerns the management of human resources. market capitalization and ic disclosure research on the influence of disclosure and corporate value has received considerable attention among academia and some notable practitioners in recent times. the signaling theory explains the relationship since it assumed the information contents of ic would change the opinion of the market participants regarding the present as well as the future performance of the business organizations (gamerschlag, 2013; ousama, fatima, & hafiz, 2011; sang & taylor, 2014; vafaei, taylor, & ahmed, 2011). recently, sang and taylor (2014) examined ic value relevance and its components in the share price of 160 companies listed in the australian capital market within five years. data collected from the sampled firm was analyzed using fixed-effects (fes) panel regression analysis. the study finds that ic (structural capital and human) and the sampled companies' share prices are significantly related. also, gamerschlag (2013) investigates the impact of human capital disclosure on the corporate value of the american journal of business management, economics and banking volume 14 july, 2023 p a g e | 70 www.americanjournal.org 130 largest quoted german companies from 2005 to 2009 using content analysis. the study utilizes a disclosure index to estimate hcd. it employs share price and equity return as proxies for market value. also, it introduces year and industry dummies as control variables. the study surrogates hcd by four items, which include: hcrtot refers to the amount of human capital disclosed, hcrqc refers to the quantity of "qualification/competence" information disclosed, hcrmc refers to the quantity of "motivation/commitment" information disclosed, while hcrps refers to the quantity of "personnel" issues (the number of keywords available in the report analyzed) disclosure. hypotheses development hermanson et al., (1992), argue that the present accounting systems have failed to recognize humans as assets with the resultant effect of workforce downsizing with the main objective of increasing shortterm profits which may be dangerous in the long run and for the general economic welfare of organizations. despite the uncertainty in the professional and academic mainstream, human capital accounting still occupies a place of accounting thought (thompson, 1999) and therefore there is the need to broaden the scope of existing knowledge in this area. human capital is now an important factor for a national economic growth in the modern economy. intellectual capital assets has become an important resource for performance due to change from manufacturing-based economy to a knowledge-based economy (firer and williams, 2003; orens et al., 2009). the stock market is an example of knowledge-based enterprise or sector. because financial statements exclude valuable assets there has been an increasing gap between market value and book value in companies (chen et al., 2005). according to chen et al., (2005), market-tobook values in us companies has increased from slightly above 1 to over 5 between the years 1977 to 2001. this gap is widening in the pharmaceutical companies in nigeria. more than 90% of corporate market value is missing in financial statements. from the foregoing, the following hypotheses were formulated. ho1: there is no significant relationship between reporting of salaries and wages and market capitalization of pharmaceutical firms in nigeria ho2: there is no significant relationship between reporting of retirement benefit cost and market capitalization of pharmaceutical firms in nigeria. ho3: there is no significant relationship between reporting of other employees cost and market capitalization of pharmaceutical firms in nigeria. methodology to investigate human capital reporting and its impact on the market value of the company, a purposive sampling method were employed to collect data from seven (7) pharmaceutical companies listed on the nigeria exchange group (ngx). (independent) variables examined were salaries and wages, retirement benefit cost, other employees cost and its relationship to the (dependent) variable, market capitalization of the company. annual reports and all required data for seven companies in the nigeria exchange group were utilized from 2012 2021. this work used the ordinary least square, multiple regression analysis on e-view 10 to determine the relationship between the independent variables and the dependent variables. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 71 www.americanjournal.org model specification using dependent variables; market capitalization and three independent variables; reporting salaries and wages of employees, reporting retirement benefit cost, reporting other employee cost, a model was formulated thus; model specification showing the functional relationship is expressed as follows: eps= ʃ (rswe, rrbc, roec)……………………………...1 expanding the functional relationship in mathematical terms: eps = ßo + ß1rswe + ß2rrbc+ ß3roec ………………2 adding error terms to the econometric form: eps = ßo + ß1rswe + ß2rrbc+ ß3roec + µ……………3 where: eps = earnings per share rswe = reporting salaries and wages of employees rrbc = reporting retirement benefit cost roec= reporting other employees cost β0 = intercept β1-3 = coefficient of the independent variables = error term results and discussions regression test ordinary least square was employed to measure the relationship between human capital reporting and stock market performance of quoted pharmaceutical companies in nigeria. the results obtained are presented in the tables below. table 1: eps = ßo + ß1rswe + ß2rrbc+ ß3roec + µ dependent variable: eps method: least squares date: 04/29/23 time: 21:53 sample: 1 70 included observations: 67 variable coefficient std. error t-statistic prob. rswe 48.700008 69.900008 0.695793 0.0051 rrbc 13.500007 40.800008 3.299422 0.0038 roec 30.000008 27.100008 1.126045 0.0075 r-squared 0.327216 mean dependent var 8.558636 adjusted r-squared 0.466923 s.d. dependent var 5.081559 s.e. of regression 6.154610 akaike info criterion 6.598404 sum squared resid 719.7053 schwarz criterion 6.747182 log likelihood -69.58244 hannan-quinn criter. 6.633451 durbin-watson stat 1.226672  american journal of business management, economics and banking volume 14 july, 2023 p a g e | 72 www.americanjournal.org source: extracts from e-view print out version 10 and author’s compilation ß coefficient the result shows that the coefficient of rswe, rrbc and roec all have a positive relationship with eps to the extent that a percentage increase or a unit change in rswe, rrbc, roec, rta and rtl will result to a 49%, 14%, 30%, increase in eps of the seven quoted pharmaceutical companies in nigeria for the period under investigation. coefficient of determination (r2) this shows the value of changes in the dependent variables attributable to changes in the explanatory variables. r2 is the ratio that explains the variation in the model. from the result, 33% and 47% of the total variable of eps can be explained by the independent variables; rswe, rrbc and roec in a multiple relationship. the remaining the 67 and 53 of the total variation were not fully included in the model but have been taken care of by the error term. the variable representing human capital is the most interesting result from the multiple regression analysis. the results from this study show that there is empirical support between human capital and market capitalization. the result shows that the coefficient of rswe, rrbc and roec all have a positive relationship with eps (proxy for market capitalization) to the extent that a percentage increase or a unit change in rswe, rrbc, roec, rta and rtl result to a 49%, 14%, 30%, increase in eps of the seven quoted pharmaceutical companies in nigeria for the period under investigation. the pooled ols regression was conducted to examine the influence of major determinants of human capital reporting on market capitalization of listed pharmaceutical companies in nigeria. each econometric methodology was used to estimate the pooled ols for the individual firms and then collectively. looking at the results of this study the null hypotheses of h01, h02 and h03, are rejected and the alternative hypotheses are accepted. it means that the study provides empirical evidence for a statistical significant relationship between reporting human capital costs and stock market performance.. the coefficient for rswe, rrbc, and roec are 48.7, 13.5 and 30.0 which shows that the human capital is positively connected to market capitalization . it implies that an increase in human capital tends to lead to an increase in stock market performance, and a decrease in human capital tends to provide a decreased in stock market value. this result corroborates the findings of other studies that human capital reporting has a positive effect on market capitalization. that is, the difference between the market and book values can be attributed to human resources, which agrees with the study of husin et al. (2011). this is also in line with zambrano et al. (2018) who sought to analyze the impact of investing in intangible resources, specifically training, and advertising, on the market value of companies. the study revealed that both the investments in training and advertising separately have a positive relationship with the ratio of book value/market value of firms in the coming year. the cumulative benefits derived from training are added in the form of larger total assets in the long term, and this is seen by investors as an indication of future growth. investors tend to invest in the shares of companies that have an increase in market value of shares. again, the contribution of wang and chang (2005) and chen et al. (2005) provide a support for our results. according to them, the human capital is the basis for the intellectual capital as well as the value creation. they opined that the american journal of business management, economics and banking volume 14 july, 2023 p a g e | 73 www.americanjournal.org knowledge, the skills and the experiences of the employees improve managerial strategies and make creation to strengthen the relationships with customers. conclusion in accordance with the research findings of the study, we can therefore conclude that human capital reporting has a relationship with the market capitalization of pharmaceutical companies in nigeria. from the analysis carried out, reporting salaries and wages of employees, reporting retirement benefit cost, reporting other employee cost were significant in explaining the stock market performance of pharmaceutical companies in nigeria. recommendations 1. adequate reporting and suitable remuneration/ compensation plans should be devised to encourage the acquisition, motivation and retention of valuable, unique, inimitable and well organized human assets who have the greatest potential to drive performance of pharmaceutical firms in the stock market. 2. despite complexities reportedly associated with the application of human capital reporting in the financial reporting environment, the international accounting standards board as a global standardsetter should build on and devise means to improve on the already existing platforms of standards like ias 38 (intangible assets) so that new standards which directly and adequately address hc issues in the financial reporting setting can come to the fore. contribution to knowledge this study contributes to the existing body of knowledge as follows: reporting salaries and wages of employees, reporting retirement benefit cost and reporting other employee cost, enhances market capitalization of pharmaceutical companies in nigeria. references 1. abeysekera, i. 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(2014). value relevance of human capital based disclosures: moderating impacts of labour productivity, investor sentiment, analyst coverage and audit quality. advances in international accounting, 30, (2014), 338–353. 38. saunders, m., lewis, p. & thornhill, a. (2009). research methods for business students. 5th edition. harlow: financial times prentice hall. 39. shiller, r.j. (1981). do stock prices move too much to be justified by subsequent changes in dividends? american economic review, 71(3), 421-436. 40. spiess, d.k. & affleck-graves, j. (1995). underperformance in long-run stock returns following seasoned equity offerings. journal of financial economics, 38(3), 243 267. 41. syed, a. m. (2009). human resource accounting disclosure of bangladeshi companies and its association corporate characteristics. brac university journal, (1) 1, 35-43. 42. valenti, a. & horner, s. (2019). the human capital of boards of directors and innovation: an empirical examination of the pharmaceutical. international journal of innovation management, 24(6), 2019. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 76 www.americanjournal.org 43. van rooij m, lusardi a, alessie r (2011). “financial literacy and stock market participation”, journal of financial economics 101(2):449472. 44. winful ec, kumi-koranteng p, owusu-mensah m (2013). “investment education” on stock market performance: case of gse, journal of contemporary management, id: 1929-0128-201304-29-17 45. woodhall m (2001). human capital: educational aspects, international encyclopedia of the social and behavioral sciences. 46. wright, p.m., dunford, b.b. & snell, s.a. (2001). human resources and the resource based view of the firm. journal of management, 27(6), 701-721 47. yartey ca (2008). determinants of stock market development in emerging economies: is south africa different? imf working paperwp/08/32 washington, international monetary fund. 48. youndt ma, subramaniam m, snell sa (2004). intellectual capital profiles: an examination of investments and returns. journal of management studies 41(2):335-361. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 26 www.americanjournal.org studying miniature works and the importance of aesthetic education in it jabbarov azizbek jabbarovich andijan state university, teacher of the department of fine arts and engineering graphics a b s t r a c t k e y w o r d s the study of fine arts and works of applied art expands the human mind and increases its relationship with the surrounding environment. the study of miniature art opens wide opportunities for the formation of talented and talented young people. such a person will increase feelings of beauty, goodness, love for nature and the motherland in his heart. increases interest in history, national traditions and glorifies it. composition, miniature, symmetry in fine art, depiction, harmony of colors. composition has its place in miniature art as well as in all types and genres of fine art. the word composition is derived from the latin word, which means to compose, combine, connect, combine various elements into a whole and praise some idea. composition is used in all areas of art. an artist creates an elegant work of art by comparing and placing different shapes and scenes in relation to each other. it should be remembered that the reception of the work by the audience depends on its compositional solution. let's try to organize the composition starting from the world of plants. when looking at the example of a tree, it should be considered that the sprouting roots, branches, leaves and branches are integrally connected to the body. the artist connects and summarizes the fragments through the pictorial form. representation means to establish mutual relations between parts of the work, to connect them to a common whole, to achieve the intended goal by summarizing. a work of fine art is a finished work of art regardless of its genre and composition. for centuries, painters have been searching for new structures of composition in order to express clearly, clearly and clearly the solution of their works. as a result, the location of the form elements in the works is not irregular, the important elements of the subject are made up of triangles, pyramids, circles, ovals, squares, rectangles in simple geometric forms. when working on a miniature painting, it is important to correctly place the images in the composition. placement is the correct placement of the shape or image to be drawn on the surface. placement in composition is of great importance for all majors and fields. the artist must be able to correctly place the project he wants to draw on the surface. as a result of not being able to place all the elements correctly in the composition, works of art that do not meet the requirements are created. the composition will be perfect if the elements of the theme of the work are placed correctly. in the process of placement, it is necessary to fully comply with the laws of composition. when creating a american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 27 www.americanjournal.org composition, the theme, idea, logic, placement, symmetry and asymmetry, rhythm, proportion, proportion, movement, module in the composition, sharp and subtle differentiation, in its composition, it is expressed taking into account such laws as stylization. symmetry is a greek word that means that measurements are equal to each other. if we give an example of symmetrical measurements to each other, the circuit of the scale is also symmetrical to each other. the topic of symmetry is extremely broad and cannot be limited by time and space. throughout the history of mankind, symmetry has played an important role in science, art and other types of intellectual activity in almost any civilization. architects, painters, composers, musicians and scientists use similar concepts but speak different languages. this makes it even more difficult for representatives of different fields to understand each other about symmetry. symmetry is the living things and objects that we perceive, for example: a butterfly, furniture and plants are not only found in the animal world, but also in visual arts, composition, music, dance, and literature. symmetry has been an idea that humans have used for centuries to achieve and create order, beauty, and perfection. in nature, symmetry occurs based on some internal laws. does the aesthetic value of symmetry depend on its importance in life? the question arises. in other words, does the artist derive symmetry from nature? does it copy nature and improve it? beauty is inextricably linked with symmetry. mirrored symmetry is of great importance in life and art. the concrete geometric concept of mirrored symmetry is mixed and mixed with abstract concepts of balance, harmonic creation. frey writes in his article "on the problem of symmetry in the fine arts": "symmetry means calm and connectedness, and asymmetry is its complete opposite, it means freedom and freedom. the same location of the figure with respect to the center of symmetry, axis or plane is called symmetry. if it is rotated around the center, axis or plane of symmetry, its symmetrical elements completely replace each other. a special form of symmetrical composition is patterns. along with symmetry, asymmetry is often used in images. asymmetry is the opposite of symmetry. asymmetry is the opposite and violation of symmetry. if the composition is built on the basis of asymmetry, then, according to the main rule, it is not symmetrical. if, on the contrary, the composition follows the rules of symmetry, then there is no asymmetry. etiquette also plays a role in miniature painting. marom is the regular repetition and sequence of elements of suitable dimensions at a certain distance. harmony is a property organically characteristic of many phenomena in nature and human life. the change of day and night, the seasons, and the periodicity of the development of various forms of organic life occur at the same time. this periodicity and repetition leaves its mark on material forms. for example, the repetition of annual rings in the pruning of tree trunks is due to the successive return of the seasons, the periodicity in time is reflected in spatial material forms. as a reflection of the laws of real existence, all art it is known that the unique ideas of beauty and humanity in miniature paintings are a source of encouraging young people to virtue and enriching their artistic-aesthetic world view. because in the miraculous images, the ideas of true nationalism, the appearance of antiquity and locality are fully reflected. in particular, the miniature works created by uzbek artists are full of vivid life, various scenes, compositions that express the image of constant, moving creatures, and the original essence of the distant past, bright and pure colors in their own clearly created forms, and their harmony. delicate, gracefully drawn in straight and flowing lines with care and high skill, which shows that it has a positive influence. especially the painters like to make the images bright. with its unique, figurative artistic language, historically, it serves as the basis for the formation and development of young people's aesthetic imagination, artistic thinking, and a new worldview, and is considered its main american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 28 www.americanjournal.org source. in this place, it is important to study the life and work of the great muikalam owner kamoliddin behzod. the name of the great painter kamoliddin behzod, who is a great representative of eastern visual art, who enlightened the world of sophistication with the magic of the brush, occupies a special place in the history of world visual art. unfortunately, very little information about behzod's life and creative activity has been preserved. there are various reasons for this. first, the time in which the artist lived was complicated, scholars of this period could not write detailed literature about visual arts. so, even in the period when behzod lived, visual art was only noticed by the representatives of certain science and art, and around the royal palaces. there was not enough opportunity for the spread of visual art works among the people. thus, there are very few sources about the work and life of the artist, and there are even discussions about the year of behzod's birth. references 1. ia karimov. high spiritual invincible power. t., "spirituality", 2008. publisher.2. ia karimov. uzbekistan is striving for the 21st century t., "uzbekistan", 1996 3. m. nabiyev. rangshunoslik t., "teacher", 1995 4. n. aydinov. problems of training artists-teachers. t., "teacher", 1997. 5. ssbolatov. color science. t., national publishing house of philosophers of uzbekistan 2009 6. b. boymetov. n. tolipov. art club at school. t., 1995 7. s. uralov. the art of creating a miracle. t., "labor", 1996 8. n. aydinov. scenes from the history of visual art of uzbekistan. t., "teacher", 1997 9. r. khasanov. basics of visual arts. t., g. ghulam printing creative house. 2009 10. sfabdurasulov. fine art and its teaching methodology. t., "ilm intelligence", 2011. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 23 www.americanjournal.org cotton farming and cotton growing technologies in uzbekistan ochilov jahongir boymurodovich "tiqxmmi" national research university karshin institute of irrigation and agrotechnologies direction of agricultural mechanization a b s t r a c t k e y w o r d s in this article, opinions were expressed about the cotton industry and its cultivation technologies in our country. cotton, yield, cotton, variety, pest, moisture, plow cotton fiber is the largest and most renewable source of natural fiber for the world's textile industry. it has a number of advantages over artificial fibers, with its characteristics, such as elegance and air conductivity, as well as the fact that it is an ecologically pure product. therefore, the demand for cotton fiber will never decrease all over the world. uzbekistan is one of the world's leading agricultural countries. in the fields of gastrointestinal tract of our land, there are two types ofgastrointestinal tract, and there are two kinds of gastrointestinal tract. grain varieties with thin fiber are characterized by a high quality of tomatoes. however, grain varieties of this species are adapted to the hot climate and areavailable only in southern regions of uzbekistan. (matthew 24:14; 28:19, 20) jehovah's witnesses would be pleased to discuss these answers with you. four-leafed grain varieties that supply more than 95 percent of the world's tomatoesare distinguished from other grain varieties by their yields and high tomatoes. nevertheless, the grain varieties of medium-sized grain have their own shortcomings, which are related to the quality of their tomatoes, which are thicker, scattered, and lower in strength than thin fibers. (matthew 24:14; 28:19, 20) jehovah'switnesses would be pleased to nutrients and then inserted into her womb, where it implanted. creating new varieties based on traditional gastrointestinal tract methods takes some time, cost, and nature's inconveniences also have a positive impact on selection processes. today, the involvement of modern biotechnological tools, such as dna — markers technology and rnk — interference in agricultural crop selection, allows you to achieve high results in the field. to assist individuals desiring to benefit theworldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. it is 38-40 mm long and has a consistency of 36 gs/tex, andit is not left behind by small-scale grains, but it is resistant to water shortages, salt and diseases, and its yield is 20 percent higher than that of ordinary grain varieties. a series of varieties was created. these achievements by market scientists have been recognized internationally, and the technology of "disabling gene activity" has won patents from the united states, russia and egypt. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 24 www.americanjournal.org cotton fiber is almost half of the gross product produced in agriculture . according to further analysis, there are great opportunities in agriculture that are not employed. the agricultural season began with a sharp cooling of precipitation and even air temperatures. achieving abundant harvests in the fields depends primarily on favorable weather conditions and systematic organization of work. in other areas, it isnot easy to achieve excellent results in agriculture, which is characterized by its extreme delicacy, hard work, great knowledge and experience. cultivating cotton from technical crops is a very complex process, and many activities will depend on how the year comes and on climate zones and weather conditions. many years of observations show that during the years when spring is more late than usual and the temperature is low, it becomes much more difficult to cultivate cotton than in the years when the weather drought arrives, creating unexpected problems. chronic precipitation observed on the first fifteen days of march this year also delaysthe early spring of agricultural activities (land flattening, boronalash, mola clicking, and powering) and the planting of chickens in the early term. since then, it is recommended that cotton and cottonclasses and farms immediately begin planting chickens immediately after this sequence of precipitation and cold days, and take steps to complete the season in a short period of 10 to 12 days. to assistindividuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. if phosphorus and potassium fertilizers were not removed before the autumn plow, before early spring boronalash, 60-70 percent annual norms of phosphorus fertilizers, 50 percent of potassium fertilizers are placed in the soil at a depth of at least 15 to 17 inches [15 to 17 cm] using drawing cultivators (chku-4) or other types of fertilizer mechanisms. early spring maturation in the maintenance of moistureleads to a normal level of soil fine, grainy, density before planting and increases the ability to maintain natural moisture well. the resulting embryo was allowed to develop in nutrents and then inserted into her womb, where it implanted. the gastrointestinal tract grows prematurely, progresses, and yields increase. processing before planting a chicken is carried out depending on the state of the soil. if the surface of the bourganatened area is flat, it will be enough to mow before planting. it isimportant to clean and remove the roots of perennial weeds with the help of bourgeoisie attached to the drawing with flat cutting working organs installed in areas pressed by weeds to a medium and strong degree. and the roots that remain on the surface are manually picked up and burned. the mola is then suppressed for etis h, which eliminates irregularities. the mechanical composition is processed on heavy soils at a depth of 15-17 cm using a drawing. in this case, the line must have a borona on the back. mechanically located mechanical soils with a lightweight and medium-sized composition are only boronaladi va mola. in the areas where the feather is taken, moisture in the soil is well preserved and the cutting edge is removed. push driving ensures the long-term optimal state of soil density in the layer. in this technology, at the top of the soil, the temperature is 1-3 degrees higher than in a flat field. the resulting embryo was allowed to develop in nutrients and then inserted into her womb, where it implanted. to improve the efficiency of gastrointestinal irrigation technology, it is recommended that you sprinkle the owner and irrigate it, hunting two different works. the resulting embryo was allowed to develop in nutrients and then insered into her womb, where it implanted. in turn, the amount of seasonal water american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 25 www.americanjournal.org in the water cavity increased by 15 to 16 percent compared to the normal method, and the yield increased by 3-5 s/h. the widespread use of water-saving technologies will allow you to reduce water consumption by 2025%. at the same time, it isrecommended to use irrigation technology using mobile egiluvc han pipes. the first water quickly drains. then, when it reaches the foot of the owner, the water is reduced. if irrigation using flexible pipes is carried out, at least 20 percent of the waterand economy will be done in this area. during the growing period of irrigation of the gastrointestinal tract, mineral boys are continuously supplied dissolved in water, the soil's root system is distributed, the optimal water and nutrient regime is formed in the scaly layer, and cotton yields increase. when drip irrigation is used in the gastrointestinal tract , it is recommended that you irrigate it more often and at low standards than in the owner's irrigation. for the shell to grow uniformly, an effective temperature sum of 80-100 c is required. it ispossible to plant a chicken dog at an optimal time, to use the natural moisture of the soil wisely, subsequently increase the resistance of the gastrointestinal tract to dehydration and obtain a fairy tale. in a nutshell, cultivating p axta is a jar clear that requires complexity. farmers and farmers should rely on experts with many years of experience in cultivating crops over the years. during the years of serenity and humidity and low air temperatures, attention will have to be paid mainly to agrotechnical tastes. list of available publications 1.avlyoqulov.a. prospects of world and uzbek agriculture and agriculture: yesterday, tomorrow. problems with the development of cotton and grain . tashkent-2004, pages 22-34. 2. abduraxmonov.e.b, toshtemirov.a. lectures of the international conference on the elimination of all forms of discrimination against women, 2009 pages 311-313. 3. boboyev.f, toshtemirov.a. t :lectures of the international conference on scientific conference, 2009 pages 315-317. 4.boltayev.s, zerdabmurotov.a.f. collection of scientific and practical conference lectures on the introduction of new economical agro-technologies in rural areas t:2011y 158 pages. 5.bo'riyev. i.o., tillabekov.b.x. "the effect of fertilizer mechanisms and seedling thickness on grain crop yields ." collection of scientific and practical conference lectures on the introduction of new economical agro-technologies in agriculture t: 2011y 249 pages. 6.battalov.a.m., b.n.rakhmatov, i.l.ikromovaga'za's medium-sized, quality and fertile "bucharest-8" variety. problems with the development of cotton and grain. tashkent-2004, pages 277-279. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 148 www.americanjournal.org the reality and possibility of employing the european excellence model (efqm) in iraqi universities (case study at southern technical university) ass. prof. dr. abdulridha naser mohsin almalik management technical college, southern technical university, iraq dr.abdnaser@stu.edu.iq narjis falih hassan alsaeed management technical college, southern technical university, iraq narjisfalih93@gmail.com a b s t r a c t k e y w o r d s the research aims to reveal the reality and the possibility of employing the european model of excellence (efqm) in iraqi universities, specifically in the southern technical university, and for the purpose of achieving the goal of the research, the case study approach was employed to reach a set of accurate information and detailed results on the research variables, and then adopt a set of research tools (check list) to measure the level of application of the european excellence model (efqm), and the research community (formations of the southern technical university in basra governorate) was identified in proportion to the research objectives, in addition to using a set of statistical tools and methods provided by it. the ready-made statistical package program ((spss v.26; excel & smartpl(. in light of the cognitive and applied research results, the results of the check list showed that the research community (southern technical university) has reached an average score of approximately (427 points), which falls according to the ladder of excellence within the second level, which is (organizations known for excellence: 599 – 400 points), in addition to its entry into a number of university rankings, which contributed to its closeness to the european excellence model (efqm). european organization for quality management (eeqm), european excellence model. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 149 www.americanjournal.org لمستخلص:ا ( للتميز األوروبي النموذج توظيف إمكانية و واقع عن الكشف إلى البحث يهدف efqm الجامعات في ) ولغرض تحقيق هدف البحث تم توظيف منهج دراسة الحالة للتوصل ، ية الجنوبيةا في الجامعة التقن العراقية وتحديد دوات م اعتماد مجموعة من األث ية عن متغيرات البحث، ومن إلى مجموعة من المعلومات الدقيقة والنتائج التفصيل efqm( لقياس مستوى تطبيق النموذج األوروبي للتميز )check listالبحثية )قائمة الفحص ) مجتمعتحديد وتم(، في محافظة البصرة( بما يتناسب مع أهداف البحث، فضال عن استخدام الجنوبية البحث )تشكيالت الجامعة التقنية اإلمج واألساليب األدوات من ))موعة الجاهزة االحصائية الحزمة برنامج يوفرها التي حصائية spss v.26; excle & smartpls .)) ية والتطبيقية، أظهرت نتائج قائمة الفحص ) وفي ضوء نتائج البحث المعرف check list ( إن مجتمع البحث )الجامعة ا يقارب )التقنية الجنوبية( قد وصلت إلى معدل نقاط م 427 نقطة(، والتي تقع وفق سلم التميز ضمن المستوى الثاني 400 – 599 وهو )المنظمات المعروفة بالتميز: تصنيفات الجامعية ساهم في نقطة(، فضال عن دخولها لعدد من ال (. efqmاقترابها من النموذج األوروبي للتميز ) ) الجودة األوروبية إلدارة المنظمةالكلمات الرئيسة: eeqm .بي للتميزوور النموذج األ ، ( منهجية البحث وبعض الدراسات السابقة : ولالمحور األ : مشكلة الجامعات مراكز علمية ذات مزايا تنافسية قادرة على جذب الكثير تعتبر study problem:البحث أوًلا لحة بات ومتطلبات أصحاب المصدرتها الواضحة لتحقيق رغمن الزبائن وتقديم العديد من الخدمات للمجتمع، أي ق ( كأحد المنهجيات التي تبنتها العديد efqmسواء داخل المنظمة أو خارجها. وبهذا برز النموذج األوروبي للتميز ) ( العالي األداء وتحقيق للتميز كنموذج الجامعات بلورة مشكلة (. barry & fenton, 2013من البحث ويمكن الت التالية: بالتساؤ الجامعة .1 عينة البحث قيد هل نظر وجهة وفق للتميز البحث وعلى األوروبي النموذج مقومات تمتلك (efqm ؟) تدرك إمكانية توظيف النموذج األوروبي للتميز البحث وعلى وفق وجهة نظر عينة البحث هل الجامعة قيد .2 (efqm ؟) ق جزئي ا، طبق كلي ا، مطب( وفق مستوى )م efqmميز ) ما هو الوزن الحقيقي لتقييم النموذج األوروبي للت .3 غير مطبق(؟ : تاليهداف البحث بالأتمثلت :study objectivesالبحث أهداف : اثانيا (.efqmالنموذج األوروبي للتميز ) تشخيص واقع تطبيق .1 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 150 www.americanjournal.org قيد .2 الجامعة إدراك مستوى للتم البحث تحسين األوروبي النموذج توظيف إمكانات ودور يز ألهمية (efqmفي تحسين عملي )التالي قابليتها التنافسية. اتها وأدائها وب ( في الجامعة قيد الدراسة. efqmتشخيص وتحليل عوامل نجاح توظيف النموذج األوروبي للتميز ) .3 متغيرات همية البحث في الجانب المعرفي من خالل تناولأتتمثل study importance:البحث : أهمية اثالثا ((، والذي يضم ثالث محاور وفق إصدار efqmز ) )النموذج األوروبي للتميلة في المتغير المستقل متمثالبحث (efqm, 2020 وهذه المحاور مازالت تأخذ اهتمام العديد من الباحثين والمنظمات والجامعات والسيما أن أصل ،) ا لكل ا مستمر يقية همية التطبفضال عن األ تلك الجهات. النموذج هو عبارة عن جائزة لألداء المتميز، أي يشكل حافز ( وهل هو فعال مطبق بشكل كلي أو efqmتتمثل في تشخيص الواقع الفعلي لتوظيف النموذج األوروبي للتميز ) ( للوقوف على check listجزئي أو قد يكون غير مطبق أساس ا، وعملية القياس سوف تستند إلى قائمة فحص ) . المستوى المطبق فعال تم اعتماد منهج دراسة الحالة الذي البحث ف اهد الغرض تحقيق :study approachالبحث : منهج اعا ابر يوصف بأنه تحقيق تجريبي يبحث في ظاهرة معاصرة ضمن سياقها الواقعي، وتعتمد على مصادر متعددة لألدلة األولي المسح الشخصية واالستبانات مثل اعتمد والوثائق والمقابالت والتي هذ عليهاالبيانات جمع ، البحث افي (choudrie et al., 2023: 4.) مكانية تطبيق النموذج االوربي للتميز وإولغرض التعرف على واقع (efqm ،) تصميم حيث فحص تم وبعض (check list) قائمة الجودة إلدارة األوروبية المنظمة مؤشرات إلى باالستناد لقياس مستوى تطبيق أبعاد نة لم تم تنظيم هذه االستبالرئيسة والفرعية، مع العالدراسات السابقة وتناولها للمتغيرات ا (، من خالل مقياس ثالثي )مطبق، مطبق check list( باستخدام قائمة فحص )efqmالنموذج األوروبي للتميز ) : هما جزئين رئيسينقد قسمت إلى جزئي ا، غير مطبق(، وإن االستبانة وهي: )اللقب العلمي، المنصب البحث ينة عالفقرات الديمغرافية ل لشخصية المتعلقة بعدد منالمعلومات ا الجزء األول: الوظيفي، المؤهل العلمي، نوع العمل الممارس، مكان العمل(. يتمثل بـ ) الجزء الثاني: efqm( فقرة خاصة بالنموذج األوروبي للتميز ) 52 ) . وعينة خامساا مجتمع البحث : study populations & sample مجتمع : القيادات البحث إن من يتكون البصرة، والبالغ عددهم ) األكاديمية و التدريسية في تشكيالت الجامعة التقنية الجنوبية ( التي تم الحصول عليه 269 (2020 من دليل الجامعة التقنية الجنوبية لعام ، وإن المسوغ العلمي الختيار هذا المجتمع هو االهتمام 2021) والمبررالو قبل رئاس اضح المن الجامعة الجنوبيةة األداة ، تقنية توزيع الشامل عند الحصر أسلوب استخدام تم توى معنوية قدرها )الخاصة بالدراسة. بناء على ما تقدم وعند مس ( كان الحد %90( وبمستوى ثقة تقدر بـ ) 0.05 قدرها البحث األدنى لتمثيل مجتمع 143) ( )فرد ا beal, 1989 ع االستمارات التي تم ، وبعد التوزيع كان مجمو ( ترجاعها والصالحة للتحليل اإلحصائي تقدر بـ ) اس 153 .للتمثيل المتبع ( استمارة وهو أعلى من الحد األدنى american journal of business management, economics and banking volume 12 may, 2023 p a g e | 151 www.americanjournal.org الجانب النظري والمفاهيمي المحور الثاني: ) يعتبر همية:المفهوم واأل :وًلا أ للتميز األوروبي للنموذج الرئيسي الهدف efqm التن القدرة افسية ( هو زيادة ية ودعم التنمية المستدامة في الدول األوروبية، حيث يقدم النموذج األوروبي للتميز ) للمنظمات األوروب efqm ) ا غير إلزامي يحلل العالقة بين ما تفعله المنظمة والنتائج التي يمكن أن تحققها فيما يتعلق بزبائنها، وهذا االطار إطار لتميز )حول النموذج األوروبي ل ية تحليل منطقية ومنهجيةيساهم في بن efqm ويختلف الهيكل األساسي للنموذج ،) ( للتميز وهي efqmاألوروبي األعمال تؤثر على التي المعايير من بسبب مجموعتين المماثلة المناهج عن ) وتوضح سية للتميز في األعمال، مجموعة الممكنات ومجموعة النتائج، حيث تشمل معايير الممكنات العوامل األسا كل الجهود يجب أن تهدف إلى تحسين نتائج األعمال، وال يمكن تحقيق هذا الهدف إال من خالل معايير النتائج أن ( efqm(. حيث يتخصص النموذج األوروبي للتميز ) yousaf & bris, 2019: 12رضا الزبائن والموظفين ) ي ذلك المنظمة، وبعد اكتشاف خصائص المفي بالمناهج والطرق الثوصي بدال من مجرد المناهج طابقة ناء على ( فهم المنظمات لما يجب تغييره من efqmوالطرق العامة، عالوة على ذلك يدعم النموذج األوروبي للتميز ) ة للمنظمة خالل التقييم الذاتي لنقاط الضعف، باإلضافة إلى معرفة ما إذا كانت المناهج والطرق المختارة ستكون مربح (medne et al., 2020 وعلى الرغم من أن المحتوى والشكل العام للنموذج األوروبي للتميز ) (. efqm قد ) تغير مع مرور الوقت، إال أن المبادئ التي يستند عليها بقيت ثابتة والتي تتمثل: )أولوية المستفيدين، ضرورة التركيز يام المنظمة تيجة حول ماهية وكيفية قل، فهم عالقة السبب والنعلى المعنيين بصورة مستمرة وعلى المدى الطوي ( efqmبأعمالها والنتائج التي تم تحقيقها(، وإليضاح الرؤية أكثر، تم انشاء المنظمة األوروبية إلدارة الجودة ) ذلك من خالل للتقدير والتعريف بالنجاح المستدام، ولتقديم التوجيه والتوضيح لمن يسعى لتحقيق ذلك، ويمكن انجاز ل على النموذج األوروبي للتميز ) مكونات رئيسة والتي تشتمتكامل ثالث efqm( ،)efqm, 2020 .) وهي المبادئ األولية التي تمثل القاعدة األساسية لتحقيق التميز المستدام ألي منظمة.. المفاهيم األساسية للتميز: 1 . النموذج األوروبي للتميز )2 efqm المفاهيم األساسية ومنطقعدة المنظمات على تحويل إطار عمل لمسا (: radar إلى ممارسة عملية. إن النموذج األوروبي للتميز ) نا يرى الباحثبناء على ما تقدم، efqm ،هو أداة إستراتيجية وتشغيلية وإدارية ) من تحقيق مستوى من عملية وعلمية فعالة، تتمكن المنظمات بمختلف األحجام والقطاعات ومن خالل تطبيق معاييره أخرى، للمنظمات التي تبحث عن االستدامة في عملياتها وأدائها، فهو بمثابة إطار عمل افسة والتميز، ومن ناحية المن شامل لتحقيق التميز المستدام. النموذ مفهوم " جيعرف بأنه للتميز الاالوربي وفرق واألكاديميين والموظفين القادة تمكن للغاية، فعالة عمل أداة ية تحديد المنظمة للغرض، وكيفية الوفاء بوعودها والقيام بذلك لحة اآلخرين، من فهم كيف والطالب وأصحاب المص american journal of business management, economics and banking volume 12 may, 2023 p a g e | 152 www.americanjournal.org "بطريقة مستدامة وأخالقية ( efqm, 2020). إطار عمل إداري معترف به عالمي ا، يدعم ويعرف ايضا بأنه " أما (efqm, 2021 )المنظمات في إدارة التغيير وتحسين األداء. martusewicz أداة تم انشاؤها بأنه " فيرى ة إلى، دمج األنشطة المتعلقة بالتنمية المستدامة في أنشطة استجابة لتحديات اإلدارة الحالية، والذي يعالج بقوة الحاج ا ألنشاء ومراقبة استراتيجية المنظمة "المنظمة على المستوى االستراتيجي والتشغيلي، ودليال هام martusewicz et al., 2022). ) . أبعاد النموذج األوروبي للتميز )ا: نيا اث efqm, 2020): بعد تطوير نموذج ) efqm ليشمل اإلصدار األخير على سبعة معايير رئيسة مقسمة على مراحل عديدة ( التنفيذ والنتائج(، ويتفرع من المعايير الرئيسة ) ا فرعي ا 23على ثالثة محاور هي )التوجه اإلستراتيجي، ( معيار نات، و ) للممك (2 للنتائج، والتي تقاس من خالل توزيع ) ا فرعي ا معيار ( نقطة على المحاور الثالثة بواقع 1000 ( نقطة لمحور النتائج، ويمكن 400( نقطة لمحور التنفيذ، و )400( نقطة لمحور التوجه اإلستراتيجي، و )200) ( بالتالي: )efqm, 2020بيانها ،)nenadal, 2020: 20-21( ،)turisova et al., 2021: 6-7 ،) (martusewicz et al., 2022: 7-8) . : التوجه اإلستراتيجي الجزء اًلول :strategic direction من أجل أن تحقق المنظمة نتائج مبهرة ومستدامة تلبي طموحات المعنيين وتتعدى رغباتهم واحتياجاتهم، وتحديد مستدامة، ومن ثم خلق ثقافة التميز والتفوق ية تركز على إيجاد قيمة ر رسالة طموحة وإستراتيجغاية ملهمة وتطوي مكنها من على اآلخرين، ومن خالل التوجه اإلستراتيجي للمنظمة بالمقابل يحقق لها الريادة ضمن نظامها البيئي وي تنفيذ خططها المستقبلية. الثاني: التنفيذ الجزء execution : بفاعلية يجي للمنظمة يمهد الطريقن تحديد التوجه اإلستراتإ تنفيذ اإلستراتيجية ا، ولكن البد من للمضي قدم وكفاءة وضمان أن تدرك الفئات المعنية ضمن نظامها البيئي وتتفاعل بشكل كامل مع الفئات األساسية لتحقيق النجاح، ب تقوم ثم المستدامة، ومن قيمة بناء يتم أن الوالبد من الحإدارة مستويات األداء النجاح لتحقيق الي وإدارة الزمة . بة الستدامة النجاح في المستقبلالتحسينات والتحوالت المطلو الثالث: النتائج الجزء results : يتضمن هذا المحور ما حققته المنظمة من خالل محوري التوجه اإلستراتيجي والتنفيذ، بما في ذلك التنبؤات وضع نموذج ) ومن مؤشرات ذلك، تم. ليةالمستقب efqm, 2020 ،للمنظمات المتميزة التي تخلق قيمة مستدامة ) وتؤكد على نظامها البيئي، وتحديد توقعات المعنيين، وتحديد أولوياتها ومراقبتها، حيث يعتمد النموذج على خمسة american journal of business management, economics and banking volume 12 may, 2023 p a g e | 153 www.americanjournal.org ستقبل، مع مراعاة عالقات لتكيف، والتركيز على الممفاهيم رئيسة هي الثقافة، والقيادة، والتحول واألداء، والمرونة وا (. وفي ذات السياق، يتم تصنيف المنظمات وفق سلم التميز إلى ثالث fonseca et al, 2021: 8السبب والنتيجة ) المنظمات الملتزمة بالتميز: -1 مستويات 200 – 399 المنظمات المعروفة بالتميز: -2 نقطة. 400 – 599 نقطة. التميز العالمي: منظمات -3 600 – 1000 نقطة. ( وفق اإلصدار األخير للمنظمة األوروبية إلدارة الجودة. efqm( يبين النموذج األوروبي للتميز ) 1والشكل ) source: efqm, 2020 الثالث: الجانب الميداني والتطبيقي المحور ختبار قائمة الفحص لمقياس النموذج األوروبي للتميز ): اوًلا أ efqm): ة الفحص )تم توزيع قائم (checklist عددها ) ( على أصحاب االختصاص، ولغرض هو التحقق من مدى 153 ( ومقدار الفجوة في عدم التطبيق للمعايير، وباالعتماد efqmتطبيق المعايير السبعة للنموذج األوروبي للتميز ) توضح مدى تطبيق لنتائجوكانت ا ياا، غير مطبق(،)مطبق، مطبق جزئعلى المقياس الثالثي موزعة على التقديرات 52( من خالل )efqmوالتوثيق لمعايير النموذج األوروبي للتميز ) فقرة( وفق المقياس الثالثي )مطبق، مطبق بـ تقدر بالمعايير مقارنة الواقع التطبيق على أرض أن معدل إلى تشير النتائج جزئي ا، غير مطبق(، حيث كانت (1.788 من أصل ) درجة ( 3 لتطبيق والتوثيق للمعايير تصل إلى ما يقرب )ث كانت نسبة ا( تقديرات، حي 42.7% ) %57.3وهو ما يشير وجود فجوة في التطبيق ما يقارب ) )ملحق (، 1 وللتفصيل أكثر تبع ا للمعايير السبعة للنموذج . ( ( يبين ذلك: 2(، الجدول )efqmاألوروبي للتميز ) american journal of business management, economics and banking volume 12 may, 2023 p a g e | 154 www.americanjournal.org 2الجدول ) ا ( نتائج تشخي وروبي للتميز )وفق معايير النموذج األ ص الفجوة والمطبق فعليا efqm ) المعايير ت الوسط الموزون النقاط المتحققة للمعيار نسبة التطبيق فجوة عدم التطبيق مستوى التطبيق 1 المعيار األول: الغاية والرسالة واًلستراتيجية مطبق 33% 67% 67 2 2 ظمية المعيار الثاني: الثقافة المن والقيادة 1.8 60 60% 40% مطبق ا جزئيا مطبق %33 %67 67 2 المعيار الثالث: إشراك المعنيين 3 4 المعيار الرابع: بناء القيمة المستدامة 1.833 61 61% 39% مطبق ا جزئيا 5 المعيار الخامس: قيادة األداء والتحول 1.571 52 52% 48% مطبق ا جزئيا 6 عات المعيار السادس: انطبا المعنيين 1.6 53 53% 47% مطبق ا جزئيا 7 المعيار السابع: األداء اًلستراتيجي والتشغيلي مطبق 33% 67% 67 2 %57.3 %42.7 427 12.804 اإلجمالي لنتائج التقييم باًلعتماد على مجموعة من األساليب اإلحصائية. ينالمصدر: من اعداد الباحث ( الجدول 2من النت كانت أعاله، ال( أن إلى تشير بالمواصفات المئو نسبة ائج مقارنة للتطبيق اإلجمالية الفعلية ية ) المعيارية للنموذج األوروبي للتميز efqm( تقدر بـ )اذ كان مجموع النقاط المتحققة لجميع معايير %42.7 ،) 427التميز ) فة بالتميز، مع ذلك هذه النسبة تؤشر ن الجامعة تكون ضمن المنظمات المعروأ لى إنقطة( وهو ما يشير يز لمعايير النموذج األوروبي للتميز )إلى الحاجة لمزيد من االهتمام والتعز efqm كون هناك فجوة في التطبيق ) %57.3قدرها ) ، إذ كان من أصل سبعة معايير أربعة مطبق جزئيا ، وأيضا بالنسبة للمعايير المطبقة مقدار التطبيق ( %67كان ) بية ورو لى مزيد من االهتمام لرفع نسبة التطبيق للمعايير األ إما يؤشر ( وهو : : اختبار جودة المقياس لنموذج الدراسة اثانيا :وصف الفقرات الديمغرافية لعينة الدراسة .1 إن وصف عينة دراسة الحالة كان من خالل خمس فقرات ديمغرافية وهي: )اللقب العلمي، المنصب الوظيفي، ع العمل الممارس، مكان العمل(، وكما هو مبين في الجدول ) العلمي، نوالمؤهل ( أدناه وفق النسب المئوية لكل 3 متغير: american journal of business management, economics and banking volume 12 may, 2023 p a g e | 155 www.americanjournal.org 3الجدول ) توزيع عينة البحث( %النسبة المئوية التكرار التصنيف الفقرة الديمغرافية اللقب العلمي %45 69 مدرس مساعد %37 57 مدرس %10 15 أُستاذ مساعد ذأستا 12 8% %100 153 المجموع الكلي المنصب الوظيفي %42 64 تدريسي %20 31 مقرر قسم %16 25 مسؤول شعبة %14 22 رئيس قسم %5 7 معاون عميد %3 4 عميد %100 153 المجموع الكلي المؤهل العلمي %63 97 ماجستير %37 56 دكتوراه %100 153 المجموع الكلي لممارسنوع العمل ا اديميأك 64 42% 0 0 إداري %58 89 مشترك %100 153 المجموع الكلي مكان العمل %10 15 الجامعة %54 82 الكلية %37 56 المعهد %100 153 المجموع الكلي . اعداد الباحثين الجدول: من 3من الجدول ) قارب نصف العينة ممن كان ما ي ( أعاله، كانت نتائج وصف الفقرات الديمغرافية كما هو مبين، حيث 69هم بدرجة مدرس مساعد حيث بلغ عددهم ) مستجيب( وبنسبة مئوية ) ( وهي األعلى نسبة مقارنة ممن هم 45% 12بدرجة أُستاذ والتي كانت األدنى بعدد ) مستجيب( وبنسبة مئوية ) (، أما المنصب الوظيفي بلغ ممن يمارس 8% 64مهنة التدريس ) مئوية )مستجيب( وبنسبة ( وهو أعلى نسبة، في حين بلغت أقل نسبة من المستجيبين ممن 42% 4هم بدرجة عميد حيث بلغ عدد كل منهم ) مستجيب( وبنسبة مئوية ) (، أما بالنسبة للمؤهل العلمي كانت نسبة 3% american journal of business management, economics and banking volume 12 may, 2023 p a g e | 156 www.americanjournal.org 97( وبعدد )%63ممن حاصل على شهادة الماجستير ما نسبتهم ) مستجيب(، في حين ممن حاصل على شهادة ما نسبتهم ) الدكتوراه 56( وبعدد )37% مستجيب(، أما بالنسبة لنوع العمل الممارس بلغ ممن يمارس العمل المشترك (89 مستجيب( وبنسبة مئوية ) ( وهو أعلى نسبة، في حين بلغت نسبة المستجيبين ممن يمارس العمل األكاديمي 58% (64 مستجيب( وبنسبة مئوية ) 42% هو طبيعة مكان العمل حيث كان العدد األكبر األخيرة و(، أما الفقرة الخامسة و البصرة بنسبة )% من المستجيبين ممن عمل في كليات الجامعة التقنية الجنوبية 82( وبعدد )45 مستجيب( في البصرة بعدد ) حين كانت النسبة األقل ممن عمل في رئاسة الجامعة التقنية الجنوبية 15 مستجيب( وبنسبة )% 10 .) الدراسةاًلستجاب نسبة .2 لمقياس بيانات :ة المعتمدة في جمع االستبيان، البحث األداة استمارة كانت استمارة االستبيان( على عينة مكونة من مختلف المستويات 269وباالعتماد على أسلوب العينة العشوائية تم توزيع ) ات المطلوبة للتحليل والممتدة بين الفترة مع البيان القيادية واألكاديمية وكادر الهيئة التدريسية وبعد مرور شهرين تم ج (، وبعد استبعاد البيانات الشاذة والتي لم تمأل، كانت العينة الصالحة للتحليل مكونة من 2/2023/ 32022/ 12/ 3) ( أدناه: 5مستجيب( وكما هو مبين في الجدول ) 153) ( تفاصيل عدد اًلستمارات الموزعة والصالحة للتحليل5الجدول ) ات الموزعة اًلستمار 269 100% %24 65 اًلستمارات التي لم تسترجع %76 204 اًلستمارات المسترجعة %16 32 اًلستمارات التي لم تملئ outliers 19 9%)اًلستمارات الشاذة ) %91 153 اًلستمارات الصالحة للتحليل اًلحصائي .ينالمصدر: من اعداد الباحث american journal of business management, economics and banking volume 12 may, 2023 p a g e | 157 www.americanjournal.org : لبحثاي لعينة التحليل اإلحصائي الوصف .3 :أوًلا: مقاييس النزعة المركزية والتشتت لمتغيرات الدراسة من المناسب التعرف على خصائص ومواصفات تم اختبارها من ) مكون من متغير رئيسي البيانات التي تم جمعها من خالل أداتين )قائمة الفحص( 52 مفردة( تم ت قيادية مختلفة وكادر الهيئة التدريسية ولعينة من مستوياالمكون البحث من خالل مجتمع البحث اختبار مقياس 153مكونة ) مستجيب( ضمن بيئة التعليم العالي )الجامعة التقنية الجنوبية(، حيث تم اختبار مقاييس النزعة المركزية باين( والتشتت من خالل استخدام مجموعة من األساليب اإلحصائية )الوسط الحسابي، واالنحراف المعياري، والت )البحث فقرات على معايير لسبعة إشراك المكونة والقيادة، التنظيمية الثقافة واًلستراتيجية، والرسالة الغاية تختبر المعنيين، بناء القيمة المستدامة، قيادة األداء والتحول، انطباعات المعنيين، األداء اًلستراتيجي والتشغيلي( efqmالنموذج األوروبي للتميز ) كيبة البيانات أعاله كما هو مبين أدناه: تلخيص تر (، ويمكن . التحليل الوصفي لمتغير النموذج األوروبي للتميز )1 efqm :) بالنسبة للوسط الفرضي لمقياس المتغير المستقل النموذج األوروبي للتميز ) efqm ،( هو مقياس ثالثي )مطبق النز مقاييس اختبار تم حيث مطبق(، غير جزئي ا، المركزمطبق الحسابي، عة )الوسط خالل من والتشتت ية ( من خالل المقياس لهذا البيانات تركيبة كانت حيث والتباين(، المعياري، 153واالنحراف وكانت مستجيب( ، مخرجات تحليل الوسط الحسابي لمقياس البحث تشير إلى اقتراب إجابة عينة البحث من الوسط مع ذلك هذه النتائج ن االهتمام في تطبيق معايير النموذج األوروبي للتميز ) ة لمزيد متؤشر الى الحاج efqm نتائج (، حيث كانت ( بـ تقدر قيمة أعلى أن إلى تشير اإلستراتيجي التوجه لمتغير الحسابي للمفردة 2.310الوسط هو )ocl3) ) spm1)، في حين أدنى وسط حسابي كانت للمفردة )0.620)وبانحراف معياري قدره ) قدرها ) بقيمة 1.515 ) (، أما بالنسبة للبعد الثاني التنفيذ اإلستراتيجي كانت النتائج تشير إلى أن قيمة الوسط 0.550وبانحراف معياري ) (، 0.656( كأعلى قيمة متحققة لهذا البعد وبانحراف معياري يقدر بـ ) plt7( للمفردة )2.169الحسابي تقدر بـ ) (iti2)كذلك حققت المفردة حسابي تقدر بـ )للوسط ال أدنى قيمة ( وبتباين 0.667( وبانحراف معياري قدره )1.479 ا بالنسبة للبعد األخير النتائج اإلستراتيجية كانت نتائج النزعة المركزية تشير إلى أعلى قيمة للوسط 0.445) (، وأخير (ii10)الحسابي تمحورت حول المفردة بقيمة قدرها ) 0.701( وبانحراف معياري )2.103 يمة األدنى ، أما الق( . 2)(، )ملحق 0.691( وبانحراف معياري )1.621( بقيمة قدرها )ii4للوسط الحسابي كانت للمفردة ) american journal of business management, economics and banking volume 12 may, 2023 p a g e | 158 www.americanjournal.org والتوصيات : اًلستنتاجات الجزء الرابع : استنتاجات الجانب المعرفي والنظري: المعرفية والنظرية والتطبيقية ولغرض اإلجابة البحث في ضوء نتائج أوًلا التي وردت في المنهجية يتضح اآلتي: البحث الت على تساؤ أظهرت نتائج قائمة الفحص ). 1 check list )الجامعة التقنية الجنوبية( قد وصلت إلى معدل البحث ( أن مجتمع ( يقارب 427نقاط ما يفسر سبب االهتمام بالتميز وهو المعروفة المنظمات إلى مستوى نقطة(، وهو ما يؤهلها عن دخولها لعدد من التصنيفات الجامعية ساهم في اقترابها من النموذج األوروبي للتميز موذج، فضال المبكر بهذا الن (efqm .) مجتمع . 2 بأن النتائج والرسالة البحث أظهرت الغاية تشخيص في كامل إدراك لديها الجنوبية( التقنية )الجامعة زئي الذي يصل إلى )تطبيق الجواإلستراتيجية )التوجه اإلستراتيجي(، انعكس في مستوى ال 67 نقطة(. وفقا لما البحث المبينة فيما سبق، فإن الباحثة تضع توصيات البحث في ضوء استنتاجات ونتائج :ا: التوصياتثانيا يأتي: العمل على انشاء هيكلية تنظيمية تراقب وتحدث االتجاه اإلستراتيجي، من خالل الصياغة المتناغمة :الولىالتوصية .الجامعة وبما يتناسب مع الظروف البيئية والمتغيرات في محيط العمل األكاديمي ومسار العمل التنافسيية رسالة لرؤ تعزيز مشاركة العاملين التي تنطلق من خالل تنمية قدراتهم وتدريبهم ورفع مستوى المهارة والكفاءة :نيةالتوصية الثا امعية عالمية، وخلق ثقافة التمكين لكي تتم الموازنة وأبحاث ج وزجهم في ورش عمل عن القيادة واإلدارة بمراكز بين التوجه اإلستراتيجي واألداء والكفاءة بالعمل. الثال الوصول :ةثالتوصية التشكيالت، تستهدف الجامعة وخطط على مستوى اعداد خطط مركزية على مستوى ( شنغهاي )تصنيف العالمية التصنيفات إلى shanghaiواالنضمام وتصنيف( ، the ( (times higher education وتصنيف ،qs كون متطلبات االنضمام لهذه التصنيفات أغلبها ضمن متطلبات النموذج األوروبي ،) (، وبهذا االتجاه يحقق مجتمع البحث هدفين رئيسين وبنفس األدوات. efqmللتميز ) american journal of business management, economics and banking volume 12 may, 2023 p a g e | 159 www.americanjournal.org source: 1. barry, a. m. & fenton, m. (2013). university industry links in r&d and consultancy ireland's indigenous high-tech sector. irish geography, 46, 51-77. 2. beal, s. l. (1989). sample size determination for confidence intervals on the population mean and on the difference between two population means. biometrics, 969-977. 3. choudrie, j., manandhar, n., castro, c., & obuekwe, c. (2023). hey siri, google! can you help me? a qualitative case study of smartphones ai functions in smes. technological forecasting and social change, 189, 122375. 1-10. 4. fonseca, l., amaral, a., & oliveira, j. (2021). quality 4.0: the efqm 2020 model and industry 4.0 relationships and implications. sustainability, 13(6), 1-20. 5. martusewicz, j., szewczyk, k., & wierzbic, a. (2022). the environmental protection and effective energy consumption in the light of the efqm model 2020—case study. energies, 15(19), 1-17. 6. medne, a., lapina, i., & zeps, a. (2020). sustainability of a university’s quality system: adaptation of the efqm excellence model. international journal of quality and service sciences, 12(1), pp. 29-43. 7. nenadal, j. (2020). the new efqm model: what is really new and could be considered as a suitable tool with respect to quality 4.0 concept? quality innovation prosperity, 24(1), 17-28. 8. turisová, r., pačaiová, h., kotianová, z., nagyová, a., hovanec, m., & korba, p. (2021). evaluation of emaintenance application based on the new version of the efqm model. sustainability, 13(7), 1-15. 9. yousaf, m., & bris, p. (2019). a systematic literature review of the efqm excellence model from 1991 to 2019. international journal of applied research in management and economics, 2(2), 1115. 10. http://www.dgq.de/dateien/efqm. 11. www.efqm.org. http://www.dgq.de/dateien/efqm http://www.efqm.org/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 160 www.americanjournal.org ملحق ) 1 ) وبي للتميز وذج األور اختبار قائمة الفحص للنم (efqm) غير مطبق مطبق جزئياا مطبق الفقرة ت المعايير المعيار األول: الغاية والرسالة واإلستراتيجية 1 spm1 * 2 spm2 * 3 spm3 * 4 spm4 * 5 spm5 * 6 spm6 * 7 spm7 * 8 spm8 * 9 spm9 * 10 spm10 * لثقافة المنظمية الثاني: االمعيار والقيادة 11 ocl1 * 12 ocl2 * 13 ocl3 * 14 ocl4 * 15 ocl5 * 16 ocl6 * 17 ocl7 * 18 ocl8 * 19 ocl9 * 20 ocl10 * المعيار الثالث: إشراك المعنيين 21 iti1 * 22 iti2 * 23 iti3 * 24 iti4 * ار الرابع: بناء القيمة المعي المستدامة 25 bsv1 * 26 bsv2 * 27 bsv3 * 28 bsv4 * 29 bsv5 * 30 bsv6 * المعيار الخامس: قيادة األداء والتحول 31 plt1 * 32 plt2 * 33 plt3 * 34 plt4 * 35 plt5 * american journal of business management, economics and banking volume 12 may, 2023 p a g e | 161 www.americanjournal.org 36 plt6 * 37 plt7 * ار السادس: انطباعات المعي المعنيين 38 ii1 * 39 ii2 * 40 ii3 * 41 ii4 * 42 ii5 * 43 ii6 * 44 ii7 * 45 ii8 * 46 ii9 * 47 ii10 * المعيار السابع: األداء اًلستراتيجي والتشغيلي 48 spo1 * 49 spo2 * 50 spo3 * 51 spo4 * 52 spo5 * 1 2 3 األوزان 20 22 10 التكرار 2o 44 30 ناتج )عدد التكرارات * الوزن( 1.788 المعدل الموزون )الوسط الحسابي المرجح( %42.7 النسبة المئوية للتطبيق %57.3 حجم الفجوة للمتطلب المصدر: من اعداد الباحثين باًلعتماد على قائمة الفحص. ملحق ) 2 ) (efqmالتحليل الوصفي لمتغير النموذج األوروبي للتميز ) variable subvariable items mean std. deviation variance التوجه اإلستراتيجي المعيار األول: الغاية والرسالة واإلستراتيجية spm1 1.515 0.550 0.303 spm2 1.904 0.650 0.423 spm3 2.100 0.677 0.458 spm4 2.001 0.667 0.444 spm5 1.736 0.664 0.441 spm6 1.808 0.697 0.485 spm7 2.100 0.641 0.411 spm8 1.781 0.657 0.432 spm9 1.837 0.654 0.427 spm10 1.944 0.666 0.444 ocl1 2.107 0.598 0.357 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 162 www.americanjournal.org المعيار الثاني: الثقافة المنظمية والقيادة ocl2 2.059 0.560 0.314 ocl3 2.310 0.620 0.384 ocl4 2.202 0.670 0.449 ocl5 2.008 0.682 0.465 ocl6 2.269 0.646 0.417 ocl7 2.124 0.678 0.459 ocl8 2.112 0.672 0.452 ocl9 2.107 0.613 0.376 ocl10 2.113 0.651 0.423 التنفيذ لث: إشراكالمعيار الثا المعنيين iti1 1.596 0.660 0.436 iti2 1.479 0.667 0.445 iti3 1.637 0.634 0.401 iti4 1.731 0.651 0.424 المعيار الرابع: بناء القيمة المستدامة psv1 1.824 0.607 0.369 psv2 1.631 0.661 0.437 psv3 1.867 0.663 0.440 psv4 1.668 2.549 6.496 psv5 1.540 0.648 0.419 psv6 1.794 0.596 0.355 المعيار الخامس: قيادة األداء والتحول plt1 2.046 0.586 0.344 plt2 2.059 0.622 0.386 plt3 2.082 0.651 0.423 plt4 2.141 0.637 0.406 plt5 2.031 0.566 0.321 plt6 2.001 0.616 0.380 plt7 2.169 0.656 0.430 النتائج المعيار السادس: انطباعات المعنيين ii1 1.772 0.645 0.416 ii2 1. 722 0.635 0.403 ii3 1.841 0.679 0.462 ii4 1.621 0.691 0.477 ii5 1.636 0.624 0.389 ii6 1.695 0.664 0.442 ii7 1.859 0.652 0.425 ii8 1.728 0.582 0.338 ii9 2.007 0.674 0.454 ii10 2.103 0.701 0.492 المعيار السابع: األداء اإلستراتيجي والتشغيلي spo1 1.909 0.613 0.376 spo2 1.833 0.583 0.340 spo3 1.691 0.646 0.417 spo4 1.744 0.594 0.353 spo5 1.899 0.606 0.367 على مخرجات برنامج باًلعتماد ينالمصدر: من اعداد الباحث spss v.26. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 23 www.americanjournal.org improving the organizational and economic mechanisms of small business development ergashev jamshid jamoliddinovich namangan institute of engineering and technology, assistant of the department of economics abdulkarimov zuhrali tursunalievich namangan institute of engineering and technology, faculty of economics, associate professor of economics a b s t r a c t k e y w o r d s the organization and development of entrepreneurship and private business is a very important issue, which is to lay the foundation for radical changes in the structural structure of our economy during the stages of economic reforms in our country. to achieve this goal, a number of economic reforms have been carried out, and large institutional frameworks have been created to enhance its role. these include legal and regulatory documents on the organization and guarantee of entrepreneurial activity, non-governmental organizations and enterprises that support entrepreneurs. economic reforms; small business; business entities; credit lines. it is important to further develop small business and private entrepreneurship, which play an important role in the national economy, thereby filling the domestic market with competitive, high-quality and export-oriented products, creating new jobs and increasing incomes and sustainable economic growth. work is underway. at the same time, this sector is the main impetus for the growth of tax revenues to the state budget and the growth of gdp, which is a key indicator of economic development. small business and private entrepreneurship are becoming the backbone and the main force of social, economic and political stability in our society. the organization and development of entrepreneurship and private business is a very important issue, which is to lay the foundation for radical changes in the structural structure of our economy during the stages of economic reforms in our country. to achieve this goal, a number of economic reforms have been carried out, and large institutional frameworks have been created to enhance its role. these include legal and regulatory documents on the organization and guarantee of entrepreneurial activity, non-governmental organizations and enterprises that support entrepreneurs. in short, the establishment of a complex of private entrepreneurship and small business in uzbekistan is going well. president sh. mirziyoyev said about the activities of these enterprises: the decree of october 5 this year approved american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 24 www.americanjournal.org a comprehensive program of measures to ensure the rapid development of entrepreneurial activity, comprehensive protection of private property and improving the quality of the business environment. this state program, newly developed by experienced and qualified specialists, is aimed at ensuring unconditional compliance with the requirements of the adopted legislation in this area. it includes measures to provide full support to small business and private entrepreneurship by the state, to further strengthen the protection of the rights and guarantees of the industry, to limit unwarranted inspections of entrepreneurs. indeed, small businesses have become the lifeblood of our national economy today. one of the most pressing issues in further expanding their activities, of course, in the development of small enterprises is to support their activities, to further expand their activities by attracting national and foreign investment in the activities of small businesses and private entrepreneurship. the research is also devoted to this topic, which is relevant today. on measures of the president of the republic of uzbekistan to further stimulate the development of private entrepreneurship, small and medium business april 9, 1998 pf-1987 the cabinet of ministers decides on the implementation of decree no. 1. for reference, the legislation of the republic of uzbekistan establishes a system of guarantees and benefits for small and medium-sized businesses. prohibit the issuance of departmental documents that complicate the organization, registration and operation of small and medium-sized businesses, the requirement of additional references and documents not provided for in government decisions. 2. to determine that public administration bodies, credit and financial institutions, insurance companies and non-governmental organizations are responsible for the implementation of tasks to support small and medium-sized businesses. the heads of local authorities, as well as the ministries, departments and agencies listed in the annex, should be warned that their activities will be evaluated based on how effectively they contribute to the development of small and medium business, private entrepreneurship. 3. to recommend to the chamber of commodity producers and entrepreneurs of uzbekistan to establish information and advisory support centers for small and medium business under the territorial chambers of commodity producers and entrepreneurs, to assign the following functions: • providing business entities with economic, legal, production-technological and other necessary information for the effective implementation of programs and projects in the field of entrepreneurship; • comprehensive assistance to small and medium-sized businesses, private entrepreneurs in the development of constituent documents, business plans, loan applications, organization of accounting and reporting, audits, other types of consulting services; • provision of legal services, assistance in interaction of private entrepreneurs, small and medium businesses with tax, financial, banking, insurance and other structures; • preparation of feasibility studies of investment proposals, documents required for participation in the selection of investment projects for small and medium enterprises, as well as calculations of their financing. the chamber of commodity producers and entrepreneurs of uzbekistan together with the state property committee of the republic of uzbekistan within two weeks to develop a model charter, structure and staffing of regional centers for information and consulting support of small and medium enterprises; confirm. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 25 www.americanjournal.org 4. exhibitions and presentations of foreign small technologies and compact equipment in the regions of the republic, with their delivery and demonstration, for the formation of orders of small and medium-sized businesses of the ministry of foreign economic relations and their competitive inclusion in foreign credit lines accept the offer of transfer. the ministry of foreign economic relations of the republic of uzbekistan together with the council of ministers of the republic of karakalpakstan, regional and tashkent city khokimiyats within two months to determine the exact dates of exhibitions and presentations in the regions of the republic from september 1998 to february 1999. to provide organizational and technical conditions for holding exhibitions, wide involvement of business entities in them, appropriate advertising in the media. 5. to determine that development of standard investment projects on foreign credit lines with the use of small technologies and compact equipment is carried out on the basis of conditions of crediting of the authorized executive banks of foreign credit lines. in conjunction with the ministry. within a month, the national bank for foreign economic activity, asaka bank, and other commercial banks should develop a procedure for conducting competitions among small and medium-sized businesses to obtain appropriate loans for their standard projects, depending on the opening of foreign credit lines. to the members of the chamber of commodity producers and entrepreneurs of uzbekistan, the association of peasants and farms. 6. to approve the procedure for selection of projects and issue of foreign credits for development of medium business. it should be noted that control over the timely and targeted use of foreign loans by small and mediumsized businesses is entrusted to commercial banks. 7. to determine: part of the missing funds of a small and medium business entity required to meet the conditions of obtaining foreign loans from the privatization of state property by the business fund through its participation in the charter funds of small and medium enterprises (previously issued loans at their expense) taking into account the amounts to be reimbursed) can be replenished from the resulting funds; 50% of the insurance premium on insurance of collateral by a small and medium business entity on a foreign credit line is paid to insurance companies by the business fund, dehkan and farm support fund should be business funds and other extra-budgetary funds shall submit quarterly reports to the ministry of finance of the republic of uzbekistan on the movement of funds related to the implementation of projects on foreign credit lines. 8. the national bank for foreign economic activity and the association of banks of uzbekistan: on their contribution to the charter capital of the madad insurance agency of 25.0 million soums each and to the charter capital of the business fund of 75.0 million soums; to approve the initiatives of commercial banks to provide free services to small and medium enterprises in the examination and selection of investment projects for inclusion in foreign credit lines. 10. the ministry of macroeconomics and statistics of the republic of uzbekistan in the second half of 1998 in the prescribed manner statistical information reflecting the status of the establishment and liquidation of small and medium enterprises, as well as key indicators of their activities by regions and industries develop american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 26 www.americanjournal.org references 1. mirzièev sh.m. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis. people's speech, december 23, 2017 no. 258 (6952). 2. https://www.imf.org/external/pubs/ft/sdn/2015/sdn1504 3.https://stat.uz/en/432-analiticheskie-materialy-uz/2031-development-of-small-business-andprivate-entrepreneurship 4. google.com 5. http.biznesrivoji american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 11 www.americanjournal.org the impact of financial technology on the financial quality enhancing of banking electronic services in jordanian commercial banks safa’a mustafa jaber faculty of business, amman arab university, amman, jordan sweets236@yahoo.com mahmood abushareah faculty of business, amman arab university, amman, jordan, mahmood. abushareah@aau.edu.jo. 0000-0003-3545-4486 a b s t r a c t k e y w o r d s this study aimed to investigate the impact of financial technology dimensions on improving the quality of electronic banking services at jordanian commercial banks in the capital, amman, from the viewpoint of bank customers. where the comparison method was adopted for previous studies. the study concluded that there is an effect of electronic financing, electronic lending, and automatic teller machines in improving the quality of electronic services in jordanian commercial banks in the capital, amman. accordingly, the study recommends the need for jordanian commercial bank administrations in the capital, amman, to pay attention to developing electronic payment services and deepening customers' understanding of electronic payment services so that they can benefit from them more, in addition to educating customers about the importance of using electronic banking services, and the inclusion of all possible services in electronic services. financial technology, electronic banking services, jordanian commercial banks. 1. introduction the quality of electronic banking services provided by banks is considered one of the most important pillars on which it relies in satisfying the customer, satisfying his needs, and attracting his attention to everything new. because of its important role in the conduct of various operations; provided by banking services (habes et al., 2023; salloum et al., 2019; wang et al., 2022). with the increase of time and the availability of modern technologies and the development of science, all commercial banks have to develop their competitive advantages and continuously improve the quality of electronic banking service. through the banking services it provides to customers that distinguish it from other commercial banks, and to attract the largest number of customers through the new and modern features american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 12 www.americanjournal.org it offers; such as reducing costs on transactions, ease and speed of dealing, more security, flexibility in dealing and accuracy in work (alghizzawi, 2019). as for financial technology, it has a fundamental role in the lives of individuals in the current era due to its heavy reliance on the internet, dealing with digital payments and money transfers. it is an advantage to attract electronic customers who spend most of their time on their smartphones in electronic communication, and use many applications available on their phones (samar et al., 2021). although the banking sector relies on human labor, it can now fully automate its banking services. through the digital services it provides to customers using mobile phone applications, or what is called smart phones. mobile applications have provided an opportunity for electronic banking services to operate completely without the need for an actual employee at the same time. in the recent times that we have witnessed in the twenty-first century due to the corona pandemic, the need for electronic banking services has increased. which adopts financial technology applications, to facilitate customers in obtaining their banking services through their smart phones, and to conduct many banking operations without the need to be present in a bank branch, which saves the customer time, effort, cost, speed and security in achieving his requirements (alshibly et al., 2019; alnawafleh et al., 2019; rahi et al., 2021). the importance of the study is represented in the extent to which the banking sector uses financial technology, and the extent of its effectiveness and impact on improving the quality of electronic banking services, its ability to achieve competitive advantage, maintain its old customers and satisfy their desires, attract new customers and provide customer-oriented solutions, in the most efficient way and at the lowest possible cost; to enhance customer satisfaction (hundal & zinakova, 2021). the corona pandemic also revealed to us the importance of electronic banking services provided to customers, and what makes it easier for them to deal with financial technology applications and programs provided by banks remotely, and to complete most of their transactions via their mobile phones, or one of the financial technology applications, and to indicate the extent to which the bank depends in its electronic transactions on financial technology. were the jordanian commercial banks keeping pace with these developments? and it addressed this crisis through its electronic services based on financial technology, and a review of previous studies has been done and compared to measure the impact of financial technology in many areas. accordingly, the study derives its importance from the importance of financial technology and its effects in conducting financial transactions, as well as the innovations it introduced, which had a clear impact on the performance and continuity of jordanian commercial banks. 2. previous studies since the beginning of the current century, the world has been witnessing an increasing technological, information and digital boom, which has greatly affected most business sectors. this boom contributed to the development of digital systems, databases, websites and other media, which changed the nature of business and economic sectors as a whole (alghizzawi, 2019). accordingly, information technology has entered all areas of practical life, as it has entered all sectors of the economy, and has overlapped with all administrative, technical and informatics jobs. as it has become an indispensable factor in the business environment, by integrating it with the main administrative functions such as planning, organizing, commanding and controlling, and through the emergence of artificial intelligence systems, computerized systems and expert systems (rahi et al., 2019). thus, these systems can make it easier for the company to achieve the required financial performance, so that technology helps reduce the american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 13 www.americanjournal.org time and effort specified to achieve the company's vision of goals, in terms of time or spatial framework, or even in terms of organizing resources (suryono et al., 2020). the development of information technology systems has led to the emergence of many influences, which are reflected in the policies and structures of organizational companies, as these systems have become an essential part of achieving the competitive advantage of organizations, through the emergence of web applications and websites, in addition to smart devices and their applications, which led to the emergence of new frameworks to compete using for online marketing, recruitment or customer relationship management (abushareah & mohamed naim, 2015). on the other hand, the banking industry is one of the most important economic sectors, and one of the most important macroeconomic drivers for any country in the world. because of this importance, the banking industry may need to constantly evolve and update, and keep up with all the updates in the information and communication technology and electronic fields. this is why banks tend to focus on the digital environment, to gain a competitive advantage, especially in a competitive banking environment where many investors are attracted towards banks as an investment (kustiningsih et al., 2020; lehyeh et al., 2020). 2.1 financial technology with the rapid development of banking services, the increase in competitiveness, the massive expansion in the quality of banking services, and the increasing difficulties of entering the financial services market, banks have become required to continuously develop services and the way they provide these services. where distinction is no longer limited to the type of service or its novelty, but rather to the method in which the service is provided to customers (higgins et al., 2019). and since this era is characterized by tremendous speed, it is imperative for all sectors, especially the banking sector, to keep pace with this speed in its services. speed is currently linked to information technology, as obtaining the advantage of speed requires excellence in technological and digital systems, and the development of digital infrastructure in order to be able to keep pace with the continuous development in banking services (almuhaisen et al., 2020). any financial transaction or service provided to the customer, through various information technology means, is considered a digital transaction. because of this great diversity and flexibility in the concept of digital transactions, this is what makes developing a clear concept of financial technology complex. however, it is clear that it is directly related to the concept of electronic services. electronic services provided in the financial sector are the means through which financial technology is applied on the ground. therefore, it is necessary to link financial technology with electronic financial services (habes et al., 2021; saghier & nathan, 2013). according to (garg et al., 2021), financial technology has gained great importance over the past years, especially in light of the continuous acceleration in the pace of digital and informational development, and financial technology seeks to achieve many goals: 1. speed this era is called the era of speed, as speed has become one of the most important requirements in the labor market (alsamirae et al., 2020). the accelerating pace of the economic wheel and the expansion of the concept of the digital economy have made the speed factor an indispensable requirement in economic and financial transactions(dash & sharma, 2022). this requirement, in addition to the great importance and continuous and large demand for banking services, made the banking sector go towards accelerating the pace of its business through the use of information technology means, and providing american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 14 www.americanjournal.org electronic services that made the service completion time faster and easier, which increased the pace of banking transactions and made the operational cycle of banks faster than before (rabaa’i, 2021; rahi et al., 2020). 2. cost reduction the maximization of economic benefit is considered the primary goal of the banking sector; given that they are primarily profitable institutions. therefore, obtaining the highest level of profit necessarily requires a reduction in costs, as reducing costs generates a higher profit. technology is one of the most important means used by banks to reduce costs (alghizzawi & habes, 2020). the introduction of technology has made working hours more productive. transactions that used to take hours to complete are now completed electronically within a few minutes. on the other hand, technology has provided the use of many office supplies in banks, in addition to its ability to reduce staff costs, by reducing the number of employees who have been replaced by technology, or enabling employees to work remotely without the need to use bank facilities that would save some operating expenses on the bank. this means that the use of financial technology has greatly contributed to reducing costs resulting from human error (hua et al., 2019; tsai et al., 2021). 3. increasing banking security, privacy and transparency many people feel insecure when dealing with banking transactions, especially in light of the fear of being robbed if carrying amounts to deposit or transfer them through banks. fintech has improved security in this aspect. on the other hand, it has reduced the process of losing evidence. the notice of obtaining the service reaches the customer through his phone number, including the details, amount and fees of the service obtained. this made the issue of transparency more clear, so that the customer carries these proofs and information on his phone wherever he goes (al-majali & bashabsheh, 2016). as for privacy, it is one of the most important characteristics that the customer is looking for in banking services, as the use of financial technology has facilitated access to banking privacy and secrecy, as some customers believe that going to the bank's headquarters poses a threat to their banking privacy, given that many people can they know the nature of the service they want to obtain, whether employees or customers by chance or otherwise. which made many of them look for obtaining banking services in a more private way, and this made electronic financial services the ideal way to achieve this requirement (asfour & haddad, 2014). 4. increased prevalence one of the most important goals that banks are looking for is to expand the reach of their services, and to reach the largest possible number of customers (alalwan et al., 2017). this cannot be easily achieved through traditional means of advertising and marketing. modern digital methods have enabled companies to promote their services more smoothly, ensuring that it reaches the largest possible segment. on the other hand, delivering the service to existing customers has become easier than before, as this financial technology spared banks the burden of establishing branches in remote and remote areas. where customers in those areas can benefit from a wide network of services, without the need to go to the bank branch (miskan et al., 2021). american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 15 www.americanjournal.org 5. comparison customer orientations and preferences differ according to the customer's awareness, and this is what makes customers turn towards different banks, because of their admiration either for the policy or the nature of the services of one bank alone. for this reason, the comparison is an important part of customers in order to create full awareness of the bank they want to deal with (habes et al., 2018). financial technology has enabled bank customers, through digital applications, whether those on the internet or smart phone applications, to review the services of different banks, and to determine the most convincing for them, as it also enabled them to compare the services’ fees, quality, and steps to perform them before the decision to go to deal. with a specific bank and not others. as the mental image becomes formed for the customer before choosing the service provider, by reviewing his services, the method of providing them, and the feedback available digitally, and comparing them with the rest of the competitors (alghzawi et al., 2020). 2.2 quality of electronic services e-services are often considered a sub-field of services, as their definition is not much different from the definition of service quality. (lee & lin, 2005) defined it as the judgment and evaluation of customers on the quality of electronic services provided to them. thus, the concept of electronic service quality is not much different from traditional service quality, with the exception of different measurement methods. electronic service quality has specific measurement dimensions, the most important dimension for customers of any electronic service is first and foremost ease of use, as these services may target many age, social and educational groups, and this difference must be taken into account. as for confidentiality, it is an obsession for users of any electronic service, as sharing personal data can be dangerous for users if the website is not trusted (alnaser et al., 2020; jiang et al., 2016). as for the website design, it is an attractive factor for customers as they expect a well-defined website with balanced colors, and organized information so that they can order services smoothly and quickly. on the other hand, customers may be interested in responses, feedback, and communication with the company that provides the service, whether about submitting a request, comments, or suggestions for development. therefore, companies must be prepared to respond quickly and appropriately (ighomereho et al., 2022). 2.3 financial electronic services in jordanian banks jordanian banks operating in jordan, like all banks in the world, are trying to build electronic systems to activate financial technology countries and facilitate their access to the largest number of customers (ismail & alawamleh, 2017). 1. system for offering and collecting services electronically (e-fawateercom) this system formally emerged and was regulated as a result of the electronic transactions law issued by the central bank of jordan for the year (2015) and the electronic payment and transfer system issued in (2017) later, in cooperation with jordanian banks, banks operating in jordan and the digital financial services company "modofaatcom". to display and pay all bills electronically, whether these bills are due to government agencies or private institutions. the operation of this system has been american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 16 www.americanjournal.org entrusted to a company specialized in this field in order to manage and operate it (al samara et al., 2019). 2. managing accounts electronically this service enables customers to access and manage their accounts securely and quickly, without the need to visit the bank providing the service. the services that can be included under this item include balance inquiry, issuance of an account statement showing the movements made by the customer, and changing the customer's personal data. on the other hand, the customer can conduct some banking operations and transactions, through this feature determined by each bank according to its internal policy (alshurideh, 2022). 3. ordering products and services bank customers can request various bank services or products, and the bank's products are limited to electronic cards, check books, and any tools that can be used to obtain bank services. where this feature reduces the burden imposed on the customer, by performing the required service without the need to consume time, as any request from the bank can be done from anywhere, whether from home, work or others (krishnan, 2014). 4. money transfers financial transfers are considered one of the most important market drivers, as they are considered one of the fastest and safest ways to exchange goods and services, as these transfers are made through banks or authorized arms such as exchange companies, service companies and financial intermediation. electronic services enable customers to make these transfers faster and more smoothly. this helps the customer save time and effort, improves the smooth flow of cash, and increases the efficiency of the supply chain and value chains (rahi et al., 2019) 5. 5. inquire about currency exchange rates many customers are interested in information related to foreign exchange rates against the dinar or other currencies, and investors are more interested in quickly obtaining information than in the information itself. in order for the information to be of value in decision-making, it must be in a timely manner. speed is very important in this field. electronic services have facilitated the process of obtaining information, especially exchange rates, which are of great importance (olusolade aribake & mat aji, 2020; rahi et al., 2021) 3. discussions most of the previous studies focused on measuring the quality of electronic banking services through independent variables different from this study. as for this study, it focused on measuring the improvement of the quality of electronic banking services through financial technology variables (al samara et al., 2019; alalwan et al., 2017; alshurideh, 2022; garg et al., 2021; habes et al., 2023; hua et al., 2019; ighomereho et al., 2022; ismail & alawamleh, 2017; jiang et al., 2016; krishnan, 2014; lee & lin, 2005; miskan et al., 2021; olusolade aribake & mat aji, 2020; rahi et al., n.d., 2020; samar et al., 2021). this study was strengthened to employ the previous experiences presented by the american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 17 www.americanjournal.org researchers in the field of study, linking financial technology variables to improving the quality of electronic banking services, and coming up with a theoretical framework for contemporary concepts, and the possibility of transferring them to the banking sector's work environment. especially commercial banks operating in the hashemite kingdom of jordan. in general, this study will achieve a new addition in the field of knowledge of improving the quality of electronic banking services in the banking sector by employing financial technology variables in this sector. 4. conclusion financial technology has an impact on all major stakeholders and activities in the bank, and the adoption of financial technology has contributed to growth in the information technology sector in general and innovations in the field of finance. despite the development of the volume of investments in financial technologies in the arab countries, its role remains in most these countries are limited and weak in reducing the financial inclusion gap in small and medium enterprises. as all the variables that absorbed financial technology have a negative impact on the demand for money (md) for both mobile phone subscriptions (ms) and automated teller machines (atm) a negative relationship with the demand for money (md). 4.1 recommendations based on the discussions that resulted from previous studies and during our review and comparison of their results, there is a need to work on developing and modernizing information technology systems in jordanian commercial banks, in order to keep pace with modern financial technology. in addition to the need for the interest of the jordanian commercial bank departments in the capital, amman, in developing electronic payment services and deepening customers' understanding of electronic payment services so that they can benefit more from them. finally, it is necessary to deepen the departments of jordanian commercial banks to motivate customers to benefit from the electronic transfer service and to facilitate the details related to providing the service, such as not exaggerating the imposition of fees on financial transfers, and to prepare electronic platforms in a way that facilitates the use of the service by customers. 4.2 future research despite the scientific and practical contribution presented in this study, there must be some limits that may be important in the future. accordingly, studies must be conducted in the near future on other banks dealing with new variables of financial technology, with a focus on using other statistical methods to process the data of the study that will be conducted in the future instead of the comparison method. taking into consideration the study of the relationship between financial inclusion strategy and modern financial technology. finally, it is possible to expand in the future to include the use of modern financial technology, on customer satisfaction and loyalty. references 1. abushareah, m. a. a. r., & mohamed naim, a. 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(2022). motivations influencing alipay users to participate in the ant forest campaign: an empirical study. international journal of environmental research and public health, 19(24), 17034. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 119 www.americanjournal.org supply chain strategies and their reflection on sales promotion (a field study in misan company for the production of dairy and refreshments ltd.) asst. prof. dr. alaa abdulsalam mustafa al-abbasi alaa@uomisan.edu.iq lecturer. hind naeem hushi hindnaeem@gmail.com asst. lecturer mohammed raoof mahmood mohamed@uomisan.edu.iq department of business administration college of administration and economics university of misan iraq a b s t r a c t k e y w o r d s this work aims to identify supply chain strategies and their reflection on sales promotion in misan dairy and refreshments co. ltd. a questionnaire was developed to ensure a relationship between the research variables, and based on the comprehensive inventory method, (89) questionnaires were distributed in misan company for dairy and beverages production ltd., and their data was analyzed using (spss v.24) program. the results of the research showed a knowledge gap related to determining the nature of the relationship between supply chain strategies and sales promotion. also, there is a statistical relationship between the research variables. therefore, the company surveyed needs to adopt supply chain strategies to stimulate sales. the results of the research can be benefited from by adopting supply chain strategies to stimulate sales, thus increasing the company's chances of achieving its goals and objectives. this study is the first that combines current variables (supply chain strategies and sales promotion) into a single hypothetical model. this means that there is no knowledge product that determines the relationship between these variables, whether at the level of iraqi organizations or others, or at the level of arab and foreign studies, so the current research came to bridge that gap. supply chain strategies, sales promotion, manufacturing. mailto:alaa@uomisan.edu.iq mailto:hindnaeem@gmail.com mailto:mohamed@uomisan.edu.iq american journal of business management, economics and banking volume 10 march, 2023 p a g e | 120 www.americanjournal.org introduction supply chain strategies are an effective competitive weapon in the current business environment, which did not emerge from a vacuum. they came as a result of changes and developments in the fields of information technology and due to changes and intensification of competition between companies within the framework of the industry environment and changes in the needs and requests of customers, which prompted companies to search for new competitive rules and adopt different strategic directions compared to its competitors by stimulating sales. therefore, contemporary companies have paid a big attention to activating sales and their tools to make a qualitative shift in them as an important competitive weapon used to attract customers and satisfy their needs and expectations, around which the strategy revolves to compete with the organization and achieve excellence and leadership in the market. 1. research methodology 1.1. search problem: the research problem lied in the difficulty organizations face in adopting supply chain strategies to stimulate sales. therefore, the current research tries to reveal the relationship between its variables and dimensions, and to determine the extent to which the researched company has appropriate strategies to stimulate sales, as there are no discussions about the extent to which supply chain strategies contribute to stimulating sales as far as the researchers know. this indicates a cognitive deficiency in how to bridge the gap between the variables of the current research. to achieve this goal, a survey was conducted in the company based on a checklist, which included specific items regarding supply chain strategies andsales revitalization. the simple random sample method (18) was adopted, including engineers, observers and craftsmen in the departments of the researched company. the researchers’ use of the simple random sample method comes from their assumption that the characteristics of the sample members are close compared to the total community, in order to achieve a practical answer to the items and questions of the research. 2.1. research questions: based on the aforementioned research problem, the present research seeks to answer the following epistemological and practical questions: a) what are the conceptual considerations rather than supply chain strategies and sales revitalization? b) can supply chain strategies boost sales? c) is there a relationship between supply chain strategies andsales revitalization? 2.1. study objectives: based on the research problem andquestions, its objectives can be determined as follows: a. putting conceptual modeling rather than supply chain strategies and sales revitalization. b. determining the availability of supply chain strategies and their contribution to sales revitalization. c. identifying the relationship between supply chain strategies and sales promotion. 3.1. the importance of study: the importance of research is based on the cognitive and applied level as follows: a) knowledge level: it seems from a cognitive framing about the research variables, there is no arab or foreign studies that combines its variables in one hypothetical model according to the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 121 www.americanjournal.org researchers' knowledge, and therefore will be of interest to researchers when conducting studies in this field. b) applied level: the applied importance of research stems from the benefits that are achieved when the research company adopts supply chain strategies that contribute to the promotion of sales. 4.1. research hypotheses: 1.4.1. there is a statistically significant positive correlation for supply chain strategies in sales revitalization. 2.4.1. there is a statistically significant effect of supply chain strategies in stimulating sales. 5.1. hypothetical scheme of research: the researchers designed a hypothetical scheme for research based on the problem of the study and its objectives, as in figure (1). figure (1) research hypothesis scheme figure (1) shows the nature of the relationship between the main variables of the research. the independent variable (supply chain strategies) is drawn in a rectangular shape, and the dependent variable (sales promotion) is in an elliptical shape by relying on(sekaran & bougie, 2016). 6.1. research community misan company for the production of dairy and refreshments ltd. consists of (89) individuals distributed in its various departments and units. the researchers relied on the method of comprehensive inventory through the distribution of questionnaire forms for all human resources in senior, middle and executive management. table (1) shows the characteristics of the community members in the surveyed company. table (1) characteristics of respondents gender number certification number job title number years of service number male 62 middle school & under 53 technician 61 5 years & less 20 preliminary study 32 6-10 years 21 female 27 administrative 28 postgraduate studies 4 11and more years 48 we conclude from table (1), which is prepared by the researchers that the respondents meet the appropriate conditions to answer the items of the questionnaire, and thus lead to accurate and objective results. 7.1. previous studies chaharsooghi and heydari (2011) aimed to identify the concept of strategic proportionality in supply chain management and alignment between competitive strategies through uncertainty and uncertainty of customer supply chain strategies sales promotion american journal of business management, economics and banking volume 10 march, 2023 p a g e | 122 www.americanjournal.org demand. it found that all strategies require coordinated decision-making, that they require an incentive plan for the human resource who implements the strategy, and that all strategies are means absorb uncertainty. al-ukaili (2010)aimed to develop a model that links the study variables and provides a background for the importance of companies adopting supply chain management strategies in achieving competitive advantage. the study concluded that the surveyed companies have benefited from supply chain management strategies at the macro and sub-levels in achieving their competitive advantage in the industry environment and market sector, and some companies adopted the efficient strategy to perform their operations and the other used the strategy responsive to enhance competitive advantage. qi and chu (2009) aimed to provide integration in the supply chain and to know the relationship between two types of supply chains, namely flexible and agile, and internal and external integration. both strategies were found to have a significant positive impact on the presentation of an integrated supply chain, a link between agile and agile supply chain strategies, and two types of internal and external integration. al-hadithi (2007) evaluated the performance of the two processing chains of the study population, identify their orientations, weaknesses and bottlenecks, determine the requirements for designing an efficient and responsive chain, design the efficient and responsive chain models for each of the products of the study sample, and determine the appropriate performance standards for both series. the study found that the efficient and responsive processing chains designed for a sample of the company's products outperformed the current series, as it improved the level of response to the customer and provided service to him by adopting competitive standards in selecting the suppliers of the two series, which raised the level of implementation of the two production lines for each of the products of the study sample. ali (2003) seemed to achieve a set of objectives represented in knowing the nature and nature of the promotional activity and the extent to which health awareness is achieved among the public through promotional activity in order to consolidate the concepts of promotion in health organizations. the study reached several conclusions, the most important of which is the lack of specialized personnel in the field of marketing. this is because the scientific methods were not applied in evaluating the efficiency of the elements of the promotional mix and the means for each element in the health organization subject of the study which requires seeking to consider promotion as a concept or function that can be applied, and seeking to develop an estimated budget for promotion activities in the health organization. al-dabbash (1998) determined the best repetitions in television commercials provided to viewers, and the researchers found that the optimal frequency of commercials is (2-3) times a day on television, and that the frequency of advertising less than that may not play its role in introducing the commodity, but if the repetition increases from that, it will create boredom and boredom in viewers. 2. theoretical framework 1.2. supply chain strategy 1.1.2. the concept of supply chain strategy supply chain strategy can be defined as the cooperation between all activities associated with the production and delivery of a product that enables customers to obtain high quality products at low cost (russell & taylor, 2003). heizer and render (2004) defined it as integrated activities for the acquisition of raw materials and their conversion into finished products for delivery to customers. ho, au, and newton american journal of business management, economics and banking volume 10 march, 2023 p a g e | 123 www.americanjournal.org (2002) asserted that it is a management philosophy that involves the management and integration of a set of selected core business processes from the end user to the primary suppliers and the provision of goods, services and information that add value to the customer and other stakeholders through the collaborative efforts of supply chain members. of (2005) noted that it is the ability of an organization to work with its suppliers to provide high-quality materials and components that are competitively priced. krajewski, ritzman, and malhotra (2010) pointed out that it synchronizes a company's operations with those of its suppliers and customers to keep pace with the flow of materials, services and information with customer needs (nezamoddini, kianfar, & tash, 2011). it is a global network of suppliers, factories, warehouses, distribution centers and retailers through which raw materials are sourced, transformed and delivered to customers. the researchers see it as a set of activities that have to do with the flow of materials, services and information through suppliers to the customer. 2.1.2. supply chain management activities: al-abidin (2005) pointed out that supply chain management activities can be divided into three categories: a. planning activities: they include planning systems and information sharing systems, such as the project resource planning system. b. value chain activities: they are product development, product diversification, development, procurement, evaluation, control of customer relations, inventory control, vendor control metrics, and customer service. c. support and support activities: these are related to the design of supply chain structure, business process redesign, and information technology. some of the terms used in supply chain management are not a general application, as they are beyond that. some concepts lie behind technical terms that extend in the perception that is referred to common parts of the overall supply network. this is useful for distinguishing between different terms presented in figure 2 (slack, chambers, & johnston, 2010). figure 2 supply chain management activities american journal of business management, economics and banking volume 10 march, 2023 p a g e | 124 www.americanjournal.org mentzer et al. (2001) pointed to seven core activities within the supply chain structure: integrated behavior, information sharing, revenue and risk sharing, collaboration, customer service focus, process integration, and building and sustaining long-term relationships with partners. from the above, the overlap of supply chain activities is evident, integrating operations, sharing information, returns and risks, and cooperation leads to building and sustaining long-term relationships with partners, focusing on customer service, and within all this, integrated behavior is demonstrated. 3.1.2. supply chain strategies slack et al. (2010) reported that a distinction is often made between a managed supply chain either in terms of supply chain efficiency or in terms of supply chain flexibility and responsiveness, taking into account the issue of inventory. this requires the rapid flow of information at the top and bottom of the supply chain from retail channels towards the back to the manufacturing processes in the organization and the chain is managed in a way that ensures the speed of product flow down the chain to avoid maintaining high levels of inventory. responsive supply chain ester emphasizes the high levels of service to the end customer, so inventory is spread along the supply chain to ensure direct connectivity so the chain can be prepared even when there is an emergency and fluctuating change in customer demands. krajewski et al. (2010); slack et al. (2010) stated that an efficient supply chain is the best option in environments where demand prediction is highly feasible, as the focus is on the criterion of efficiency in the flow of resources and services and keeping inventory at low levels. since new products are not recurring, product designs remain for a long time, as diversity is little in such environments, in which price is decisive, so the competitive priorities of organizations operating in these environments. it is low cost, acceptable quality and punctual delivery. as for the responsive supply chain, it works in environments characterized by uncertainty of demand, so it deliberately offers a wide variety of new goods and services frequently and depends on its innovative ability in that, which is positively reflected on the profit margin, so the competitive priorities of organizations operating in such environments are speed of development, fast delivery times, manufacturing according to customer demand, diversity, flexibility in size and high quality. and since these organizations work under uncertainty, they avoid the quantities of inventory that entail high costs remain, so you resort to disposing of them and selling them at large discounts. 2.2. sales promotion 1.2.2. the concept of sales promotion sales promotion is a complex set of short-term actions to encourage customers and businesses by offering additional incentives to increase sales(todorova, 2015). yazdanifard (2015)defined it as having different marketing strategies that play different roles in the market and a variety of incentives mostly short-term, designed to stimulate faster and increased purchase of certain products by customers. chang (2017) pointed out that sales promotion is part of the promotional mix in marketing activities where its main function is to communicate with customers and touch their hearts and is a decisive factor in customer buying behaviors, a direct incentive for additional product value, and an incentive for end customers, salespeople or distributors. sales promotion is therefore a critical component of the organization's marketing mix, asthese promotional tactics activate short-term technologies to generate an immediate impact on sales volumes and customer purchasing patterns(chaudhuri, calantone, voorhees, & cockrell, 2018). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 125 www.americanjournal.org from the above, the researchers define sales promotion as short-term activities aimedat attracting customers to buy, or encouragingdistributors to make greater efforts to support products. 2.2.2. sales promotion tools sales promotion tools occupy the largest share of the organization's promotion budget due to increasing competition in the market, low brand loyalty, growing power of retailers and other factors(shi, cheung, & prendergast, 2005), so sales promotion tools are divided into two main groups: customeroriented sales promotion tools, which include a variety of short-term tools designed to motivate customers to respond in a certain way, and sales promotion tools directed towards merchants that encourage them to promote the brand of the organization instead of competitors' offers (nema, nagar, & shah, 2012)and tools to stimulate sales directed to the customer are: 1. coupons: vouchers or certificates that allow the holder (customer) to receive a price reduction on a specific product(fill, 2002). 2. samples: it is the provision of offers of a specific product to the customer or building excitement and response to an existing product, and it is one of the most effective sales promotion tools in providing products. yet, it is more expensive for the organization, and the sample is sent by mail or distributed in a store or in an advertisement. sometimes it is integrated into packages, which can then be used to promote other products and services, and samples are a powerful promotional tool(armstrong, adam, denize, & kotler, 2014). 3. buying a commodity and getting the second one for free: this promotional tool involves buying a certain commodity and obtaining another item for free. it is offered to customers at the normal price and increases the value that the customer gets, as the additional quantity of the commodity provided for free plays an important role and a major reason to convince the customer to obtain and buy this commodity(shi et al., 2005). 4. point of purchase promotion: this tool includes any promotion set up at the sales site aimed at generating traffic, advertising the product, inducing the purchase of a certain batch of the product or using loudspeakers to advertise the product, using the shelves on which the products are placed, television screens in the supermarket and payment counters, voice messages in the store, audiovisual screens, and other means of promotion. 70% of purchasing decisions are caused by approved promotional means(lamb, hair, & mcdaniel, 2011). 5. prizes: they are designed to raise the attention of customers, especially those who have not used a specific product, specifically they are designed with the aim of being perceived by customers as a form of entertainment, and there are types of prizes are the contests and lotteries. here, contests require customers to demonstrate a certain level of skills and knowledge, i.e. participants are required to show proof of purchase, while lotteries do not require any skills or knowledge, but their results depend solely on luck(alimpic, 2014). 3.2.2. the effect of sales promotion in attracting the customer modern marketing is more than just producing good products and appropriate pricing and accessibility, as today attracting new customers has become very important in the world of marketing, the cost of keeping existing customers is less than the cost of acquiring new customers. all organizations need to communicate with customers and promote their products and services and convince the public to buy the product or service(familmaleki, aghighi, & hamidi, 2015). so sales promotion is used as an effective promotional tool to attract new customers and increase the repurchase rate of users, so the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 126 www.americanjournal.org organization must adopt effective promotional methods according to the type of product and determine its goals and control these means(alavuk, jevtić, & petrevska, 2015). so the impact of sales promotion on the customer is wide-ranging, as there are many factors that can affect them, either to buy or not such as the time of purchase, the brand of the product and other factors. also, customers are more attracted to the products that are promoted(shamout, 2016), so the organization mustmake important decisions about the features that should be included in the goods and services it provides to customers because they are the return on investment to increase profitability by attracting the features that retain customers. these customers are different from the features that attract them and the organization must not only convince customers to buy its products or services but also retain them(hamilton, rust, & dev, 2016). 3. practical framework 1.3. descriptive statistics of research variables: this part seeks to present the results of the research variables and items depending on some statistical methods and tools, such as standard deviation and rate of variation for each variable and paragraph in order to know the dispersion of answers, in addition to the arithmetic media of variables and items to determine the level of answer for each of them, as follows: 1.1.3. description of the independent dimension variables (supply chain strategies) of the researched company table 3, prepared by the researchers, shows the mean (mean), standard deviation (std.d.), and coefficient of variation (c.v.) for supply chain strategy items. table (3) description of the items of the independent variable (supply chain strategies) no. dimensions and items mean s.d. c.v. first efficient supply chain strategy: 1 the company strives to have a long life cycle of its products. 1.13 1.18 29.95 2 the company's selection of suppliers is based on the lowest cost. 2.37 .80 28.56 3 the company focuses on the efficient flow of its resources and operations while maintaining less inventory at the end of the supply chain. 2.98 1.07 35.36 4 the company strives to offer distinctive products to its customers based on the lowest price. 2.25 .75 29.33 5 the company operates at the lowest levelof storage and balance with products. 2.93 1.33 36.63 6 the company is keen to eliminate costs that do not add value along the supply chain. 2.27 1.02 37.91 secondly responsive vein chain strategy: 7 the company mostly strives to make its products sophisticated and/or innovative. 2.27 .71 35.21 8 quick interaction with customer preferences and desires avoids the high costs of product obsolescence. 1.20 1.09 32.95 9 the company's choiceof the list is based on speed and flexibility in responding to requests. 2.22 .80 31.82 10 the company's supply chain is responsive to volatile demand (rapid adaptation). 2.40 .76 28.26 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 127 www.americanjournal.org 11 the company provides safety storage in every link of thevein chain. 3.25 .89 33.24 12 the company's management believes that the customer is part of thevein chain, so he must be taken care of and his needs and desires must be known. 3.37 .85 34.78 13 the company is keen to maintain sufficient backup power to meet the sudden demand. 1.18 .95 32.69 general rate of the independent variable 2.29 0.93 32.82 it is clear from the results of the above table on the descriptive statistics of the items of the independent variable (supply chain strategies), that there is consistency in the respondents' answers to some of the items. this is shown by the arithmetic means that ranged between (1.13-3.37), and the standard deviations that ranged between (0.71-1.33), and the coefficient of variation that ranged between (28.2636.63). . the general arithmetic mean of the independent variable of (2.29) indicates the lack of positive acceptance and great importance from respondents towards supply chain strategies, which is lower than the value of the hypothetical mean of (3), and this reflects the actual reality in misan dairy and refreshments production company ltd. regarding the weakness of supply chain strategies in the company. so, it shows the value of the general standard deviation of (0.93) and the general coefficient of variation of (32). 82) on the non-dispersion of respondents' answers from the arithmetic mean, and the existence of harmony between the answers and understanding and perception of the items. 2.1.3. description of the variables of the approved dimension (sales promotion) of the surveyed company table 4 shows mean and standard deviation (std. d.), and the coefficient of variation (c.v.) for cleaner production items. this table is prepared by the researchers. table (4) description of the items of the approved variable (sales promotion) no dimensions and items mean s.d. c.v. 1 sales promotion tools contribute to building a good image of the company. 3.25 0.974 29.93 2 the company awards in-kind or cash prizes to increase sales. 2.24 0.977 27.23 3 the company gives gifts toits customers in order to build a friendly relationship with them. 3.04 1 33.08 4 the company provides coupons through discount for thepurchase of an item of goods. 2.96 1.01 34.43 5 the company offers a limited amount of new products for free to try. 2.4 1.07 33.7 6 the company operates advertisements for temporary offers that it offers. 3.2 1.1 34.46 7 hurry up to take advantage of your temporary offers. 2.7 0.95 31.16 8 the company gives discounts to customers, especially on some occasions. 3.27 1.04 31.96 9 sales stimulators instigate the customer's immediate purchase of their products. 2.25 1.05 30.87 10 sales promotion tools shift from the customer's resort to other competing products. 3.1 1.09 32.16 general rate of the approved variable 2.84 1.02 31.89 the above table on the descriptive statistics of the items of the approved variable (sales promotion) shows a consistency in the respondents' answers on the items. this is shown by the arithmetic means that ranged between (2.24-3.27), and the standard deviations that ranged between american journal of business management, economics and banking volume 10 march, 2023 p a g e | 128 www.americanjournal.org (0.95-1.1), and the coefficient of variation, which ranged between (27.23-34.46). the general arithmetic mean of the independent variable of (2.84) indicates the lack of positive acceptance and great importance from respondents towards sales promotion, which is lower of the value of the hypothetical mean of (3). this reflects the actual reality in misan company for the production of dairy and refreshments ltd. regarding the weak application of sales promotion tools by the management and individuals working in it, and the value of the general standard deviation of (1.02). also, the general difference coefficient of (31.89) shows that the respondents' answers are not dispersed from the arithmetic mean, and that there is harmony between the answers, understanding and awareness of the items. 2.3. hypothesis testing table (5) indicates the results of correlation between the research variables, and shows a positive correlation with statistical significance at (0.05) for supply chain strategies at the level of variable and dimensions with sales promotion. so, the supply chain strategies are one of the main pillars that should be adopted by the surveyed company to enhance sales promotion. thus, the first hypothesis of the research will be accepted, which states there is a positive correlation with statistical significance for supply chain strategies at the level of variableand dimensional with sales promotion. table (5) results of correlation between research variables and dimensions supply chain strategies efficient vein chain strategy responsive vein string strategy total sales promotion 0.58* 0.48* 0.57* * significant correlation at (0.05) level n = 89 table (6) is analysis of supply chain strategies and their reflection on sales promotion. at the overall level, it is clear that there is a significant impact of the variable of supply chain strategies in activating sales. this is shown by the calculated value of (f) of (28.62) at a significant level (0.05), and the value of (=1.67), which means that there is a sales promotion by (1.67) even if the supply chain strategies are equal to zero, and amounted to (=0.69), meaning that a change in supply chain strategies by one unit will lead to a change in sales promotion by (69%), and the value of (0.45=r2). this means that 45% of the variation in sales promotion is explained by the supply chain strategies that entered into the model, and that 55% is an exhibit explained by other factors that were not included in the regression model. at the level of sub-dimensions, all of them have achieved a significant impact in stimulating sales. thus, the second hypothesis of the research will be accepted, which states that "there is a statistically significant effect of supply basket strategies in sales promotion." american journal of business management, economics and banking volume 10 march, 2023 p a g e | 129 www.americanjournal.org table (6) results of the impact of supply chain strategies in thesales activity the independent variable and its dimensions   r2 calculated f morale level supported variable efficient supply chain strategy 1.25 0.71 0.33 21.54 0.05 sales promotion responsive vein string strategy 1.89 0.56 0.23 23.68 0.05 supply chain strategies 1.67 0.69 0.45 28.62 0.05 tabular f = 3.11 mean: 0.05 n=89 4. conclusions and recommendations 1.4. conclusions 1. supply chain strategies are integrated with the promotion of sales widely in the intellectual and cognitive aspect, as they are consistent in achieving an end and are directed towards production and sales sustainability. 2. the results of the descriptive analysis showed a weakness in the adoption of supply chain strategies in the surveyed company. 3. the results of the descriptive analysis revealed the weakness of sales promotion tools in the surveyed company. 4. the results of hypothesis testing showed that supply chain strategies and their dimensions have a direct and significant correlation with sales promotion. 5. the results of hypothesis testing showed that supply chain strategies have a significant impact on sales revitalization. 2.4. recommendations 1. the company builds efficiencies in its supply chain geared towards providing better value to customers than competitors by reducing costs and increasing responsiveness to customer needs. 2. the company prefers to rely on the single source more than the multiple source, because of its many advantages, and its fewer disadvantages. 3. the company is recommended to pay greater attention to the impact factors of its supply chain such as a reduction in the number of its suppliers, an increase in its competitiveness and shorter product life cycles, an increase in its supplier-managed inventories, and an increase in the shipment of its inventories. 4. the company's is advised to address supply chain issues of demand forecasting, quality issues with materials, parts and delivery times by aligning the supply chain with the operations strategy. 5. it is recommended to focus on establishing long-term relationships with the company's suppliers to build and enhance confidence to obtain raw materials of the right quality, at the right price and at the right time to reduce damage and reduce production costs. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 130 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(2015). the review of how sales promotion change the consumer’s perception and their purchasing behavior of a product. global journal of management and business research. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 231 www.americanjournal.org the role of modern technologies in enhancing banks profitability ahmed jasim mohammed university of misan e-mail: ahmedajm1985@gmail.com ahmed abbas hussein university of misan e-mail: ahmedabb70@gmail.com mohsin n. al-maliki university of misan muhsen@uomisan.edu.iq a b s t r a c k e y w o r d s purpose: this study aims to explore the extent to which modern technologies contribute, both as independent and dependent variables, towards enhancing the profitability of banks. design/methodology/approach: in order to address the research problem, find solutions, achieve its objectives, and test its hypotheses, several branches of rafidain and rashid banks operating in misan province were selected. a purposeful sample of 25 employees from these banks at various managerial levels was chosen. data collection was conducted using a questionnaire, and the collected data were processed and the study’s hypotheses were tested using various statistical methods, including spss and excel. results and recommendations: the research results indicate a significant impact relationship between modern technologies as an independent variable and bank profitability as a dependent variable at a significance level of 0.05. the research recommends giving greater attention to and incorporating modern technologies into banking operations as they are considered an important means of increasing bank profitability, enhancing competitiveness, and securing a larger market share. modern technologies; banks profitability; iraqi banks. introduction the rapid technological advancement stands as a pivotal factor for the banking sector, which plays a significant role in economic activities. with the emergence of banking competition, new patterns, tools, and banking technologies have surfaced, leading to a decline in traditional approaches. banks, being among the most tech-savvy institutions, have harnessed information and communication technology to american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 232 www.americanjournal.org enhance their operations and services, ultimately increasing the efficiency and effectiveness of banking activities. this, in turn, has positively impacted the overall performance of banks. to distinguish themselves from competitors and achieve high levels of profitability, banks have resorted to employing modern services and technologies. in this context, the utilization of these modern tools and technologies has become of utmost importance for decision-makers in iraqi banks. with the advent of electronic banking and the transition to knowledge and information societies, coupled with extensive use of information and communication technology, the banking industry has witnessed the emergence of new technologies characterized by their speed in task completion. notably, the utilization of modern technologies, including electronic banking and payment methods (awad & mohammed, 2017), has directly influenced the profitability, liquidity, and competitive capabilities of banks. this transformation has shifted the focus from waiting in long queues at bank branches to utilizing modern tools such as atms, point-of-sale terminals, online platforms, and mobile phones. consequently, this has resulted in an increase in the number of users of these services and modern technologies, reshaping the landscape of communication and technology in the banking sector. research problem: the research seeks to emphasize how the adoption of contemporary banking tools and technologies can boost the profits of iraqi banks under study. the research problem stems from the fact that certain iraqi banks still use outdated tools and technologies, which negatively impact their profitability. as a result, the iraqi government has been working diligently since the early 20th century to keep up with swift technological advancements. they have achieved this by incorporating modern technologies like electronic banking for credit cards, thanks to privatization efforts and banking sector development programs aimed at strengthening iraq's capabilities. the research problem can be succinctly captured by the following questions: do modern technologies play a role in enhancing the profitability of the researched banks? what is the significance of the impact of using modern banking technologies on the profitability of the researched banks? significance of the research: the importance of the research can be summarized as follows: 1. disseminating financial literacy to promote financial inclusion and reach a larger number of customers through electronic operations. 2. understanding the current status of the researched iraqi banks concerning their utilization of modern technologies. 3. recognizing the opinions of employees, management, and departments within the mentioned banks regarding the significance of deepening the use of modern banking tools and its relation to profitability performance. research objectives: the current research seeks to accomplish the following objectives: • to assess the role of contemporary technologies in enhancing the profitability of the banks under investigation. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 233 www.americanjournal.org • to determine the significance of the impact resulting from the adoption of modern banking technologies on the earnings of the researched banks. • to provide a theoretical and analytical perspective on developments pertaining to modern banking technologies and their influence on banking performance. research hypotheses: in order to address the questions posed by the research problem, several hypotheses have been formulated: 1. there is a statistically significant relationship between the use of modern technologies and the profits of the researched banks. 2. there is a statistically significant impact of modern technologies on the profitability of the researched iraqi banks. previous studies: modern banking technologies the concept of modern banking technologies is a highly intricate term from the perspective of cognitive capacity. there exists a divergence in several concepts and viewpoints. this complexity arises because the banking system operates as a meticulously organized entity, governed by sophisticated banking technological systems that harmonize its functions and objectives. we shall elucidate certain key concepts for our present study: a study conducted by hamed & sultan (2012) delineates modern banking technologies as “an amalgamation of advanced electronic technologies and cutting-edge tools, encompassing all equipment and devices effectively deployable for attaining solutions in the realm of information production.” similarly, a study by al-zuwaidi (2012) portrays modern banking technologies as “contemporary means through which information can be stored, retrieved, and harnessed, concurrently generating verbal, textual, and digital data through electronic conduits via the integration of electronic computing devices and communication apparatus.” in tandem with these perspectives, a study conducted by al-alami (2013) characterizes modern banking technologies as “technological constructs underpinned by electronic devices that can be harnessed for the processing, analysis, storage, and judicious utilization of information. these informational resources are methodically encapsulated until knowledge acquisition is realised.” in keeping with this paradigm, banks have traversed contemporary avenues to cultivate trust among their clientele, leveraging multifarious channels and banking technologies. eminent examples from the year 2021 encompass electronic account opening, application development, person-to-person payments, cloud computing, video-based communication, and the introduction of three additional technologies in 2022: chatbots, machine learning, and electronic loan application procedures (shevlin, 2022). both researchers contend that the cadence of technological advancement and the orchestration of the information revolution have interlinked individuals across the globe via networks and the internet, catalysing the expeditious exchange of information and the prompt metamorphosis of inputs into outputs, facilitating information retrieval and informed decision-making. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 234 www.americanjournal.org the importance of modern technologies bank managers require making decisions that, in turn, necessitate strategic information. the importance of these technologies lies in the fact that modern and advanced technology instills confidence in managers to make such decisions, reduces errors, and enhances time management. many countries have adopted this approach across various sectors. these advancements have created a positive impact for the benefiting customers. the recent and advanced technological transformation holds significant importance for the banking and financial industries, enabling the creation of modern methods within the banking system, such as increased investments in fintech, defined by the financial stability board as financial technology (abd ali & khudair, 2020, p. 30). contemporary financial technologies, commonly referred to as fintech, have inaugurated a substantive transformation in the administration of banking procedures, enhancing the efficacy of conventional banking activities. these encompass electronic payment platforms, virtual currencies, digital authentication mechanisms, and electronic authentication. the significance of the imperative for these technological advancements may be succinctly encapsulated as follows: (dowling & leech, 2014) (gray, 2016, p. 6): speed, accuracy, and reliability. precision in preparing financial data or any other statistics when making decisions. increased task completion speed, thereby increasing productivity. cost reduction and achieving efficiency in terms of effort and time. swift access to information for individuals through the use of the internet and mobile phones. sending and receiving data at any time and place. dimensions of modern technologies for banks technology and its innovations are at the forefront due to the benefits they offer to both customers (low costs, speed, and convenience) and banks (market share acquisition, service diversification, cost reduction, efficiency). the central axis of these processes revolves around dimensions without which there would be no effectiveness or performance. many researchers have identified these dimensions according to their classifications, with salah (2011, p. 20) suggesting the most crucial ones: components and devices, software, applications, communications, databases, and the human resources that form the foundation of these technologies. rationale for using these technologies: due to the deficiency in adopting this modern culture in most countries worldwide, which have the potential to evolve lifestyles and work patterns, it becomes necessary to change the nature of knowledge and information within society. moreover, the volume of work and information that requires storage, preservation, updating, and processing through responsive computer devices is significant (alnawashi, 2010, pp. 22-23). electronic banking operations: the banking sector holds a crucial position in the country’s economy, particularly in light of the information revolution and the growth of electronic commerce and artificial intelligence programs. banks have undergone a significant transformation in the services they provide, which can be described as a range of beneficial activities, processes, and banking services accessible through online platforms american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 235 www.americanjournal.org and modern channels. these tools enable customers to efficiently and accurately carry out their banking transactions, fulfilling both their current and future financial needs (keivani et al, 2012, p. 62). a study conducted by takele and sira (2013, p. 402) has elucidated these mechanisms as the means by which customers may consummate their transactions with financial institutions and avail themselves of electronic communication channels, encompassing automated teller machines (atms), mobile phone banking, and internet banking. conversely, it is conceivable to articulate this concept as a sequence of processes executed through the medium of the internet, exemplified by virtual financial institutions delivering services via online platforms, thus obviating the necessity for customers to physically visit brick-and-mortar establishments (siam, 2006). electronic banking services are characterized by their lack of time restrictions, ease of communication, provision of new integrated services, cost reduction, and speed of conducting banking transactions (hajira, 2022, p. 130). types of banking services associated with banking technologies and technological advancements: these can be divided into electronic distribution points and electronic payment methods as follows (soleman, 2013, p. 21): electronic distribution points: atm service. phone banking. call centers. short message service (sms). point of sale service. internet banking service. electronic payment methods: the payment system within the framework of international banking operations has undergone a transformation from tangible currency and paper-based methods to expeditious and dependable electronic protocols (premchand & choudhry, 2015, p. 110). electronic payment systems are characterized as service mechanisms wherein the utilization of technology, communication infrastructure, and information assets converges to facilitate the electronic transfer of monetary assets from one financial account to another (moertini et a ,2011,p. 17). the european central bank also defines it as the process of electronically transferring transactions by transmitting data from one party to another, processed through an intermediary (processing systems). electronic payments are carried out using a variety of methods: electronic funds transfer. debit card. electronic money (digital currency). banking profitability: the concept of profitability holds a significant place in various business operations, especially for financial companies, where it signifies operational efficiency. profitability is considered a reason for american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 236 www.americanjournal.org the existence of organizations striving for profit, and prominent among these organizations are banks (al-qaisi & al-taie, 2023, p. 235). profitability, in the form of retained earnings, is one of the primary sources for generating capital. a sound banking system relies on profitable banks with sufficient capital (al-karawi, 2009, p. 5). the concept of profitability derives from two words, “profit” and “ability.” profit represents the total income generated from business activities during a specific period (al-jua’any & al-shimmary, 2021, p. 128). concurrently, "ability" denotes the potency and capability of these enterprises to accrue profits. through the synthesis of these dual notions, profitability emerges as the aptitude to employ and invest in a particular resource with the aim of yielding returns from its utilization (tulsian, 2014, p. 19). it’s essential to distinguish between profit, as the absolute amount extracted from the income statement of a business entity, and profitability, as the percentage of this amount to the operating elements within the entity. for business and banking management, what matters is not the absolute amount of profit, but profitability because it serves as a crucial indicator in evaluating performance and provides definitive answers about the operational efficiency of bank management. profitability reflects the result of many operational decisions and policies (hussain & al moula, 2021, p. 177). profitability is defined as a bank’s ability to achieve profits through optimal investment of its resources, yielding a return proportionate to the bank’s resource base over a specified period of time. it is expressed as a percentage representing the rate of return on a specific resource within the bank's resources (alqaisi & al-taie, 2023, p. 253). it is also defined as the relationship between the returns a bank seeks to achieve and the investments that contributed to achieving them (al-aajibi & hamidi, 2021 , p. 128). therefore, it serves as a measure of relative efficiency resulting from the extent to which results are achieved through the optimal utilization of available means (al-yasseri & radhi, 2021 , p. 447). the importance of banking profitability: it serves as an indicator of efficiency and optimal utilization of a country’s resources and wealth (al-karawi, 2009, p. 5). profitability is essential for increasing shareholders’ wealth and achieving a high return on equity (al ogaili, 2020, p. 423). it is the primary criterion for assessing the management’s capability and efficiency. the more efficient the management, the more profits it can generate (al hussain & al moula, 2021, p. 177). profitability is crucial for dealing with the numerous risks that banks face in the intense competition of the market (hamad, 2011, p. 410). assessing bank profitability: bank profitability is evaluated using a set of financial indicators or ratios. these indicators are among the most critical financial metrics used extensively to assess bank profitability because they measure the bank’s ability to achieve a return on invested capital (hussan et al, 2021 , p. 273). some of the most important of these indicators include: return on assets (roa): the return on assets ratio serves as a metric portraying the bank's proficiency in deriving profits from its asset base, thereby shedding light on the efficiency with which the bank's assets yield revenue (mengistu, 2015, p. 52). this ratio is calculated using the following equation (omer & ali, 2022, p. 625): american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 237 www.americanjournal.org • roa= net profit after tax total assets *100 return on equity (roe): this ratio aims to demonstrate the relationship between the capital contributed by shareholders and the profits generated from it (uhmedy & kareem, 2023, p. 34). an increase in this ratio reflects the bank’s ability to achieve significant profits for shareholders and increase the balance of retained earnings, leading to an increase in the share's value and the profits distributed on those shares, thus maximizing returns (al ogaili, 2020, p. 423). it can be measured according to the following equation (hussan et al, 2021, p. 273): • roe= net profit after tax total equity *100 return on deposits (rod): this ratio aims to measure the net profits compared to the volume of funds deposited with the bank (uhmedy & kareem, 2023, p. 35). in other words, this ratio assesses the bank’s ability and efficiency in generating profits as a result of investing the deposits it holds. it is calculated as follows (al-yasseri & radhi, 2021, p. 447): • rod= net profit after tax total deposits *100 return on resources (ror): this ratio measures the bank’s ability to generate profits from the utilization of available resources, which include deposits and equity (hussan et al, 2021, p. 274). it is calculated as follows: • ror= net profit after tax deposits+ shareholders′ equity *100 the practical aspect: introduction: traditional banks face various challenges, such as outdated technologies or unclear customer systems, leading to difficulties for customers. these banks may also face competition from other institutions offering innovative digital solutions. in this chapter, we will describe the research methodology. the researchers adopted two approaches: descriptive methodology: this approach involves interpreting phenomena and events by examining data, vocabulary, and their relationships with the events and influencing factors. inductive methodology: this approach focuses on interpreting the current situation or problem by considering its circumstances and dimensions. it aims to provide a detailed and comprehensive description of the problem, along with solutions and recommendations. research population and sample: the research population includes individuals and groups from whom the research seeks to obtain results, either through their responses or from reports and findings published online. the sample consists of employees, administrators, and department heads working in the iraqi banking sector, specifically at al-rafidain and al-rasheed banks in misan. a total of 25 questionnaires were distributed, all of which were returned and are suitable for analysis. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 238 www.americanjournal.org table (1): the composition of the sample based on gender, age, and educational qualification. gender male 11 female 14 age group 20–30 31–40 41–50 50 or more 8 7 5 5 educational qualification diploma bachelor's master's 13 9 3 job position employee head of the department 23 2 years of experience less than 3 years 3–6 6–9 9 or more 12 4 4 5 source: prepared by the researchers based on the results of the questionnaire. research tools: the researchers primarily relied on a questionnaire as the main data collection tool to address the research questions and achieve specific objectives. the questionnaire was divided into two main sections: personal information and questions related to the study variables, totaling 22 questions. these questions were further categorized into 12 items related to modern technologies and 10 items related to banking profitability. a likert five-point scale was utilized, as illustrated in table 2. table 2 displays the alternatives for the likert five-point scale adopted by the researchers. totally agree ok neutral totally disagree disagree 5 4 3 2 1 source: prepared by the researchers. statistical methods: the researchers used microsoft excel to input the questionnaire data, and the statistical software spss was employed to extract and interpret the data, test hypotheses, determine the sample response rates, and analyze correlations and variable. presentation and analysis of results: descriptive statistics of participants' personal information: table 3 illustrates the distribution of sample participants according to the gender variable. percentage % repetition gender 44% 11 male 56% 14 female prepared by the researchers based on the program (spss). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 239 www.americanjournal.org table 3 indicates that the majority of sample participants were females, comprising 56% of the total, while males accounted for 44% of the research sample. this suggests that females exhibit a greater interest in the use of modern technologies compared to males. 2age group: table (4): distribution of sample members according to the age variable. prepared by the researchers based on the program (spss) table 4 indicates that the majority of sample participants fall within the age range of 41 to 50 years, constituting 32% of the sample, followed by those aged 50 years and above, comprising 28%. the age group of 20 to 40 years had the lowest response rate to the questions, suggesting that modern technology has garnered the interest of the older age group as it represents a new approach to modernity. 3educational qualification: table (5): distribution of sample members according to the educational qualification variable percentage % repetition educational qualification 52% 13 diploma 36% 9 bachelor 12% 3 master’s prepared by the researchers based on the program (spss) the data reveals that the majority of individuals within the research sample possess a diploma-level qualification, comprising 52% of the cohort. in contrast, those holding bachelor’s degrees account for 36%, while individuals with master’s degrees constitute 12%. this data underscores that a significant proportion of the research sample comprises individuals with lower-level university qualifications. 4 – years of experience: table (6): distribution of sample members according to the years of experience variable percentage % repetition years of experience 48% 12 less than 3 years 16% 4 3 – 6 16% 4 6 – 9 20% 5 9 or more prepared by the researchers based on the program (spss) through table 5, we observe that individuals within the sample with less than 3 years of experience constitute 48% of the group. they are followed by individuals with 9 years of experience or more, accounting for 20%. percentage % repetition age group 20% 5 20 – 30 20% 5 31 – 40 32% 8 41 – 50 28% 7 50 or more american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 240 www.americanjournal.org 5 – job position: table 7 illustrates the distribution of individuals within the sample based on their job positions. prepared by the researchers based on the program (spss) we notice from table 7 that the majority of the research sample consists of employees, accounting for 92%, which is the largest proportion of the sample. following that, the department heads make up 8% of the total. secondly, addressing the research hypotheses: 1. is there a correlation between modern technologies and bank profitability? table (8): the correlation between the independent variable (modern technologies) and the dependent variable (bank profitability): dependent variable independent variable bank profitability modern techniques degree of correlation .890** ((moral level sig.)) .000 sample volume 25 *the correlation is significant at the level of 0.05 **the correlation is significant at the level of 0.01 .890** prepared by the researchers based on the program (spss). interpreting this data reveals a clear correlation between modern technologies and bank profitability. this assertion is substantiated by the correlation coefficient, which stands at 0.890 with an associated p-value of 0.000, indicating high statistical significance. this relationship underscores that modern technologies, through their provision of sophisticated services and systems, play a pivotal role in augmenting bank profits. this augmentation encompasses aspects such as precision, swiftness, efficiency, and time-saving. consequently, this statistical evidence firmly validates the initial hypothesis. 2. does a significant causative relationship exist, at a significance level of 0.05, between modern technologies and bank profitability performance? table 9 elucidates the presence of a noteworthy causal relationship between modern technologies and bank profitability. table (9): the causal impact relationship between the research variables. variables t f r2 significance level independent variable value t calculated value t tabular valuet calculated value t tabular 0.729 0.05 dependent variable 2.823 1.711 7.409 1.964 prepared by the researchers based on the program (spss) percentage % repetition job position 92% 23 employee 8% 2 head of department american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 241 www.americanjournal.org table 9 indicates the existence of a significant causative relationship between modern technologies as the independent variable and bank profitability as the dependent variable. this is demonstrated by the computed f-value, which amounts to 7.409, surpassing the critical table value of 1.964, thus establishing statistical significance at the 0.05 level. moreover, the calculated t-value for the independent variable is 2.823, exceeding the critical table value of 1.711. furthermore, the coefficient of determination (r2) stands at 0.729. this underscores the paramount importance of modern technologies in enhancing bank profits through the provision and utilization of electronic services. several major governmental banks have adopted these cutting-edge technologies to facilitate customer access and engagement. ultimately, this has a profound positive impact on the profitability performance of the studied banks. conclusions and recommendations: conclusions: 1. the research findings have demonstrated that the widespread adoption of advanced modern technologies, coupled with high-quality service delivery through sophisticated systems, contributes significantly to enhancing bank profitability. 2. the results show that modern technologies facilitate the provision of transparent and secure financial information, requiring less effort and time. moreover, their diversity expands the opportunities for marketing such services to a broader audience. 3. the research outcomes underscore that the scope of banking operations and their modern technologies forms a crucial basis for delivering benefits to both customers, through speed, convenience, and cost reduction, and banks themselves, through efficiency, larger market share, marketing, and cost reduction. 4. the research has indicated a statistically significant impact of modern technologies as an independent variable on bank profitability as a dependent variable at a significance level of 0.05. recommendations: 1. there is a need for expansion and modernization of banking technologies by allocating more funds for this purpose while ensuring the availability of the necessary infrastructure and logistical means for secure information transmission. this should include efforts to establish secure networks for preserving the confidentiality and security of electronic payment and transfer services. 2. promote financial literacy to enhance financial inclusion and the widespread adoption of modern banking services in all regions and markets. encourage the community to use these technologies and services by investing in human resource training. 3. consider merging some banks to strengthen their capital base and offer unified services capable of competing and automating the services provided. 4. emphasize modern marketing strategies for these services to raise awareness and educate customers on how to use advanced services effectively. 5. continuously monitor the status of other banks and customer needs and preferences through expert analysis to adjust goals in line with economic changes. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 242 www.americanjournal.org references 1. al-alami, h. (2013). the role of investment in information and communications technology in achieving sustainable development, a comparative study between malaysia, tunisia and algeria. (doctoral dissertation, university of sétif 1-ferhat abbas). 2. al-jua’any, m., & al-shimmary, srh. (2021). the impact of internal islamic certificates of deposit (icd) on the profitability of islamic banks an empirical research in asia-iraq islamic bank. journal of accounting and financial studies, 16(55). 3. al-yasseri, t. m., & radhi, h. h. k. (2021). working capital financing policies and its reflection on the banking profitability (an applied research on a sample of banks listed on iraqi stock exchange). ahl al-bait journal, 1(28), 438-456. 4. abd ali, s. h., & khudair, a. h. (2020). digital transformation of banking operations as a model for developing the strategic financial performance of bank of baghdad. journal of administration and economics, (126), 1-13. 5. al ogaili, sha. (2020). the effect of liquidity on the profitability and value of banks listed on iraq stock market (an analytical study). journal of economics and administrative sciences, 26(124), 417-430. 6. al-aajibi, a.d.k., & hamidi, r.g. (2021). the extent to which the profitability index of the camels model is used according to the requirements of banking governance (a study of the iraqi bank of baghdad for the period 2016-2021). al kut journal of economics and administrative sciences,15(47), 394-406. 7. al-karawi, b. n. s. (2009). assess the profitability of the bank with liquidity indicatorsa comparative study between rafidain and rashed banks. iraqi journal for administrative sciences, 2009, 6, (24), 242-264. 8. al-nawashi, q. (2010). use of information and communication technology in education. (1st ed.) dar wael for publishing and distribution. 9. al-qaisi, iqi, & al-taie, rsa. (2023). the role of diversification of banking services in the profitability of commercial banks: an analytical study in the national bank of iraq and the iraqi credit bank. journal of management and economics, 138, 232-244. 10. al-zuwaidi, m. m. (2012). the role of information and communications technology for the education development towards the knowledge economy (erfke) project in developing life skills for jordanian public school students. arab journal for talent development, 3 (5), 83-105. 11. awad, a., & mohammad, r. (2017). the importance of using modern tools and techniques in the overall performance of palestinian national banks. jordan journal of business administration, 13(3), 405-433. 12. dowling, c., & leech, s. a. (2014). a big 4 firm’s use of information technology to control the audit process: how an audit support system is changing auditor behavior. contemporary accounting research, 31(1), 230-252. 13. gray, i. (2011). information and communication technology. 14. hajira, d. (2022). the impact of the use of information systems and technology on the quality of banking service – a case study of a sample of commercial banks. (doctoral dissertation). 15. hamad, k. m. (2017). liquidity risk and its impact on the profitability of commercial banks – an applied study on a sample of commercial banks in iraq. journal of baghdad college of economic sciences university, 52, 401-416. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 243 www.americanjournal.org 16. hamed, r.a., & sultan, a. (2012). employing information technology in designing a networkbased human resources information system – a case study at the technical institute/ninawa. alrafidain journal of computer sciences and mathematics, 9(1), 195-174. 17. hussain, a. a., & al moula, i. f. (2021). evaluating profitability and its impact on productivity in commercial banks (an applied research in a sample of iraqi private banks). journal of madenat alelem college, 13(1), 173-201. 18. hussan, a. a. & abdelqader, d. t., jassim, a. h. (2021). the effect of the return on investment index on the profitability indicators of commercial banks in iraq. journal of baghdad college of economic sciences university, 66, 269-278. 19. keivani, s., jouzbarbarkand, m., khodadadi, m., & sourkouhi, z. (2012). a general view on the e-banking. department of accounting, islamic azad university, roudsar and amlash branch, iran, pp. 62-65. 20. mengistu, m. m. (2015). evaluation of the financial performance of the banking sector in ethiopia: the case of zemen bank. global journal of management and business research & finance, 15(9). 21. moertini, v. s., athuri, a. a., kemit, h. m., & saputro, n. (2011). the development of electronic payment system for universities in indonesia: on resolving key success factors. arxiv preprint arxiv:1105.0153. 22. omer, a. m. r., & ali, d. s. (2022). the effect of financial leverage on banking profitability “an analytical study of a sample of private banks listed in the iraq market for securities”. journal of duhok university, 25(2), 619-640. 23. premchand, a., & choudhry, a. (2015). future of paymentsepayments. international journal of emerging technology and advanced engineering, 5, 110-115. 24. salah, m. m. (2011). components of information and communication technologies and their reflection in the quality of education by adopting the requirements of comprehensive quality management. proceedings of the annual conference of the college of administration and economics, university of mosul, 2011. 25. shevlin, r. (2022). the 5 hottest technologies in banking for 2022. 26. siam, a. z. (2006). role of the electronic banking services on the profits of jordanian banks. american journal of applied sciences, 3(9), 1999-2004. 27. soleman, b. t. (2013). electronic payment systems in iraq, their components, their role in risk management. research presented to the baghdad forum – banking economics, pp 1-18. 28. takele, y., & sira, z. (2013). analysis of factors influencing customers’ intention to the adoption of e-banking service channels in bahir dar city: an integration of tam, tpb, and pr. european scientific journal, 9(13), 402-417. 29. tulsian, m. (2014). profitability analysis (a comparative study of sail & tata steel). iosr journal of economics and finance, 3(2), 19-22. 30. uhmedy, r. g., & kareem, a. d. (2023). the role of the profitability index of the criterion camels in achieving banking governance requirements: a study of the iraqi bank of baghdad. world economics and finance bulletin, 20, 32-37. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 145 www.americanjournal.org state regulation of the digital transformation of the economy mr. azamat davletyarov director of graduate school of business and entrepreneurship, adavletyarov@mineconomy.uz dr. dilmurod suyunov professor, head theory and practice of corporate governance, graduate school of business and entrepreneurship, sdx2161@gmail.com dr. aman t. kenjabaev professor, head of marketing and digital economy department, graduate school of business and entrepreneurship, amankenja059@gmail.com a b s t r a c t k e y w o r d s the digital transformation of society in the country, having formed the necessary basis for ensuring technological sovereignty, requires the executive and legislative authorities to accelerate the comprehensive regulatory support of state policy in this area. the state policy of digital transformation of uzbekistan and its regulatory support are focused on the best world practices, claim to be an integrated approach, but a number of problems still remain: insufficient consistency, high volatility of the legal sector, insufficient development of technical regulation, the presence of contradictions in legislation, standards and technical regulations. the regulatory and legal framework for the digital transformation of business models in the economy of the republic, despite the measures taken, has not yet been formed at a level sufficient to solve the tasks set, which retains a number of barriers to digital development. digitalization, digital transformation, economy, industry 4.0, government regulation, legal support. introduction the development of business models for the economy as a whole with the modern challenges of digitalization is an urgent problem all over the world. the forced restrictions caused by the covid-19 pandemic caused a significant increase in the introduction of digital technologies in all spheres of society, the economy and business. in uzbekistan, the problem of this sphere has acquired special significance: in the face of challenges, the fourth industrial revolution. the digital economy must adapt as quickly as possible to rapidly occurring changes, introducing new competitive it ways of doing business. after the announcement in 2011 in germany " industrie 4.0." american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 146 www.americanjournal.org as a state strategy for introducing the concept and technologies of the fourth industrial revolution, other countries of the world, including uzbekistan, have adopted this paradigm as a call to action, having also developed state programs and development strategies aimed at digitalizing the economy as a whole and stimulating the use of digital technologies in other sectors . digital transformation is officially one of the national development goals of uzbekistan until 2030. "digital economy" is the most important national project designed to shape the digital future of the country. however, the regulatory framework for state regulation of digital transformation in the republic is still in the process of active formation, characterized by insufficient consistency and a high degree of variability. the program for the development of the digital economy of uzbekistan was adopted by the decree of the president of uzbekistan “on measures for the widespread introduction of the digital economy and e-government” no. pp-4699, april 28, 2020. this document highlights topical issues related to the widespread introduction of digital technologies in the work of domestic enterprises and government services, the training of it specialists, comprehensive support for it entrepreneurship, and many others, and its main provisions are currently being actively translated into practice. in this program, digital economic data presented in digital form is a key factor in production. the state policy of digital transformation of uzbekistan and its regulatory support are focused on the best world practices, claim to be an integrated approach, but a number of problems still remain: insufficient consistency, high volatility of the legal sector, insufficient development of technical regulation, the presence of contradictions in legislation, standards and technical regulations . the regulatory and legal framework for the digital transformation of business models in the economy of the republic, despite the measures taken, has not yet been formed at a level sufficient to solve the tasks set, which retains a number of barriers to digital development. as president sh.m. mirziyoyev , one of the priorities of the consistent socio-economic development of uzbekistan is the widespread introduction of information, communication and digital technologies. it is digital technologies that are the effective tool that can ensure the qualitative reform of economic sectors and spheres of public life. in the address of the president sh.m. mirziyoyev to the parliament and people of uzbekistan in 2020, the issues of digital development were given. it is also symbolic that 2020 in uzbekistan was declared the year of the development of science, education and the digital economy. it was during this period that the fundamental documents were adopted that laid the legal foundation for further digital reforms. the logical continuation of these works was the decree of the president of the republic of uzbekistan dated october 5, 2020 “on approval of the strategy “digital uzbekistan 2030” and measures for its effective implementation”. this policy document includes road maps for the digital transformation of priority economic sectors and regions. in recent years, even in the context of the covid-19 pandemic, large-scale digital reforms have been carried out in the country. and, importantly, today, at such a difficult stage for the country and all of humanity, the importance of measures for the widespread introduction of digital technologies in the field of public administration, public services, and trade has been clearly demonstrated. literature review time passes, people's views change, scientific and innovative ideas contribute to the constant improvement and updating of technology, the emergence of new modern products. the 21st century american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 147 www.americanjournal.org was marked by the rapid development of digital technologies, without which today it is difficult to imagine the future of spheres of life of society or sectors of the economy. current consumers, customers prefer to receive high-quality goods and services as quickly as possible, in the minimum distance and having a choice of payment in any form. we are aware of a number of publications by foreign scientists, economists and experts who have been studying the digital economy and methodological aspects of the digital transformation of business processes for many years. of interest are the works of n. hanna 1, m. pratt 2, d. sparapani , n. fenwick 3, r. kinzyabulatov 4and others. they outline the theoretical foundations and practical experience in the field of the digital economy, as well as the digital transformation of business processes of enterprises and organizations in europe, asia and russia. questions regarding the digital transformation of business processes of enterprises and organizations are described in detail in the joint research work of s. kraus 5 , p. jones, n. cuyler , a. weinmann , n. chaparro-banegas , n. roig-tierno . also, the research of domestic scientists is devoted to increasing the competitiveness of the national economy of the republic of uzbekistan in the digital economy, improving the theoretical and practical aspects of the digital economy, as well as the introduction of digital technologies in public administration. research related to the use of information technology in the economy of uzbekistan was carried out by such scientists as s.s. gulyamov , t.s. kuchkarov , a.t.kenzhabaev , a.t. shermukhamedov , sh.sh. shokhazamiy , v.k. kabulov, r.kh. ayupov , a.a. musaliev , a.m. abduvokhidov , y.a. abdullaev, a.b. bobozhonov , n.m. makhmudov, i.k. mirzaev, sh.g. odilov , d.m. rasulev , b.t. salimov, z.kh. toshmatov , n.kh. khaidarov, g.r. baltabaeva, r.a. dadabaeva , i.e. zhukovskaya, t.sh. chodiev and others. these studies of domestic scientists have made a huge contribution to the development of the digital economy. however, the introduction of the digital economy in the regions is not covered enough, in particular, the lack of knowledge of the activities of local authorities requires research in this area. methods and analysis as part of the digital development of the republic, special emphasis is placed on providing social facilities with high-speed internet connections. at present, 97% of general education schools, 82% of mahalla gatherings of citizens, 56% of police stations, as well as 100 percent of preschool educational and medical institutions are connected to a high-speed internet network. the task was set to fully provide all social facilities with high-speed internet communications by the end of this year. 1hanna n. a role for the state in the digital age. journal of innovation and entrepreneurship 7, 5 (2018). url: https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-018-0086-3/ ( date circulation : 22.04.2022). 2 pratt m., sparapani j. [definition] what is digital transformation? url: https://www.techtarget.com/ searchcio /definition/digital-transformation/ ( date circulation : 22.04.2022). 3 fenwick n (forrester) . digital business: transformation, disruption, optimization, integration and humanization. url: https://www.i-scoop.eu/digital-transformation/digital-business/ (accessed 22.04.2022). 4 kinzyabulatov r. what is a business process and a description of a business process . [electronic resource]. url : https :// habr . com / ru / post /342448/ (date of access: 04/22/2022). 5 kraus s., jones p., kailer n., weinmann a., chaparro-banegas n., roig-tierno n. 2021. " digital transformation: an overview of the current state of the art of research ," sage open , vol. 11(3), pages 21582440211, september. https://innovation-entrepreneurship.springeropen.com/ https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-018-0086-3/ https://www.techtarget.com/contributor/jason-sparapani https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ http://www.forrester.com/nigel-fenwick?intcmp=blog:forrlink https://www.i-scoop.eu/digital-transformation/digital-business/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/s/sae/sagope.html american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 148 www.americanjournal.org it should be noted that if earlier the expansion of mobile networks was carried out on the basis of 2g technologies, today projects based on 3g/4g technologies are being implemented. thus, last year 3.6 thousand base stations were upgraded on the basis of 3g/4g technologies. work is underway to develop 5g technology in uzbekistan. in the future, it is also planned to deploy a 5g network in regional centers. at the same time, the needs of the telecommunications infrastructure for sufficient resources for processing and storing data are also growing. to this end, in 2020, a data processing center with a capacity of 5 petabytes was put into operation in the republic. in the future, it is planned to launch additional data centers with a total capacity of more than 25 petabytes [9]. the development of the e-government system in uzbekistan is considered as one of the priority areas of digital reforms, which will allow to qualitatively reform the activities of public authorities and administration. large-scale reforms in the public sector cover all spheres of activity without exception with the broad involvement of ministries and departments. the most important role in the development of the egov system is assigned to the unified portal of interactive public services (spis), through which a wide range of services for the population is provided. in the first half of this year, over 2.3 million services were provided through the spsi, which saved citizens' funds in the amount of more than 18 billion soums . to date, about 300 types of public services are provided through the spigu. in order to create even greater convenience for citizens, a mobile version of the spigu has been launched, through which more than 50 types of electronic public services are provided today , including about 20 types without prior registration. in the future, it is planned to increase their number to 100 species. among the important advantages of the single portal is a preferential 10% discount for users. conveniences have been created for making electronic transactions in the spis system by linking a subscriber's bank card to the paysys payment system . further development of the e-government system implies the improvement of existing e-service systems and the greatest possible involvement of the number of citizens in digital processes. in this regard, one of the significant e-government projects is the unified identification system for citizens oneid ( https://id.gov.uz/ ). with its help, citizens get access to various electronic resources of the government, including through the issuance of id-cards with the automatic creation of an owner account. to date, more than 80 information systems and resources of state bodies and organizations have been integrated in this system. the number of users of this system is 1.5 million people. one of the priority tasks in the framework of the development of the e-government system is the creation of an effective mechanism for interaction between the authorities and the population with the widespread use of digital technologies. a number of important projects have been implemented aimed at developing a public dialogue between citizens and the government: a virtual reception of the president of the republic of uzbekistan for appeals from citizens on any issues (pm.gov.uz), a virtual reception of the prime minister of the republic of uzbekistan for consideration of applications from entrepreneurs (“business.gov .uz”), the portal of collective appeals “ mening fikrim " "my opinion" (meningfikrim.uz), a system for assessing the impact of legislative acts ( regulation.gov.uz ). as the figures clearly demonstrate, the digitalization of the public sector has made it possible to increase the efficiency of government agencies . the following successes have been achieved: https://id.gov.uz/ https://regulation.gov.uz/ american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 149 www.americanjournal.org • thanks to the introduction of the "electronic work book" system, about 3.0 billion soums were saved ; • more than 200.0 thousand people were provided with jobs through the national database of vacancies; • through the system of the unified register of social protection, social assistance was issued to more than 1 million families; • through the information system "electronic passport" more than 2.0 million certificates were digitized; digital technologies are also being actively introduced into the private sector. thus, thanks to the introduction of the "digital bank" system, the number of internet banking users has grown to 20.0 million people conclusion a comprehensive program of measures for the study and implementation of artificial intelligence technologies in 2021-2022 has been developed. in accordance with it, a list of pilot projects for the introduction of artificial intelligence technologies was approved, which will be implemented in 20212022 in agriculture, banking and finance, transport, healthcare, pharmaceuticals, energy, taxation and e-government. importantly, these projects are planned to be implemented with the direct participation of it park residents . [9] since ai technology is a very knowledge-intensive industry that requires highly qualified personnel and sufficient material and technical resources, the research institute for the development of digital technologies and artificial intelligence under the ministry for the development of information technology and communications was established. in order to train qualified personnel in the field of ai, a list of higher educational institutions and scientific organizations has also been approved, where future specialists in this area will be trained. when digitalizing uzbekistan , as in other countries, it is necessary to pay close attention to the main features of the digital economy, such as: -creation of cyber-physical systems in which a person and a machine represent a single, harmoniously working organism. -use of intellectual platforms in all spheres of social and economic activity. -introduction of the internet of people, the internet of things, the internet of services (along with the already well-mastered internet of ideas). application of big technologies data (processing "big data"). the use of modern information technologies, such as blockchain , providing transparency of transmission, reliability of data storage; nadzh technologies that contribute to the promotion of products (goods and services) on the market. in conclusion, we can say that the comprehensive digital reforms being carried out today in uzbekistan are aimed at achieving the main goal to become one of the leading states with a prosperous economy and a strong civil society. literature: 1. доклад о мировом развитии 2016 «цифровые дивиденды». url: https://documents1.worldbank.org/curated/en/224721467988878739/pdf/102724american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 150 www.americanjournal.org wdrwdr2016overview-russian-webres-box-394840b-ouo-9.pdf (дата обращения: 23.07.2022) 2. дмитриева н.е., минченко о.с., рыльских е.в. цифровые платформы как субъект и объект регулирования, или как платформы изменяют систему госуправления // вопросы государственного и муниципального управления. 2022. № 2. с. 60–84. doi: 10.17323/19995431-20220 3.https://odin.opendatawatch.com/report/countryprofileupdated/uzb?year 4. указ президента республики узбекистан об утверждении стратегии «цифровой узбекистан-2030» и мерах по ее эффективной реализации г. ташкент, 5 октября 2020 г., № уп6079. 5.кенжабаев а.т. совремённое содержание и понятие цифровой экономики. журнал “экономика и бизнес” теория и практика. №1-1 (71), 2021 год. 6.кенжабаев а.т., абдуллаев м.х. ўзбекистон республикасида хавфли геологик жараёнларни кузатишда ахборот-коммуникация технологияларини жорий этиш босқичлари ва истиқболлари. geologiya va mineral resurslar. геология и минеральные ресурсы. geology and mineral resources. научно-практический журнал. 5’2021 год. 7. suyunov d.h. “тhe main problems of corporate governance and ways to solve them”, epra international journal of economic growth and environmental issues (egei) issn:2321-6247 impact factor: 8.007 (sjif 2020) 202101-13-006137, 9, 1, january, 2021. 8.суюнов д.х. тмининг “ҳалқаро молия ва ҳисоб” илмий онлайн журнал, №3, июл, 2020 йил, 58-63 бетлар. 9. кenjabaev а.т., valikhanov a.r. post-pandemic perspectives for the development of digitalization in uzbekistaninternational journal of management, it & engineering vol. 12 issue 9, september 2022, issn: 2249-0558 impact factor: 7.119 journal homepage: http://www.ijmra.us, email: editorijmie@gmail.com double-blind peer reviewed refereed open access international journal included in the international serial directories indexed & listed at: ulrich's periodicals directory ©, u.s.a., open j-gate as well as in cabell’s directories of publishing opportunities, u.s.a. 10. suyunov d.h theoretical principles of improving the modern corporate control system in joint stock companies. international journal of economic perspectives,16(11), november 2022. 90-97. retrieve.from. 2022 by the author(s). issn: 1307-1637. impact factor: 5.865. 11. suyunov d.h the role of energy in the economic development of uzbekistan. uif-2022: 8.2. issn: 2181-3337. international scientific journal science and innovation. 2022. http://scientists.uz/ https://odin.opendatawatch.com/report/countryprofileupdated/uzb?year=2022 american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 74 www.americanjournal.org using artificial neural networks and multiple logistic regression analysis to study some factors resulting leukemia hayder sami alwan college of administration and economics / university of maysan-iraq haydersami.a87@uomisan.edu.iq a b s t r a c t k e y w o r d s this study investigated some factors which lead to leukemia using, artificial neural networks (ann) and multiple logistic regression analysis. the study also compared between these methods determine which method is better. the study included 150 observations and four variables: chronic myeloid leukemia (cml) as a response variable, patient weight, blood platelets (plt), and the bone marrow edema (eme) as explanatory variables. the model's goodness of fit was measured using the maximum likelihood ratio test, which followed a chi-square distribution. results showed that the relationship between the explanatory variables and response variables is significant, indicating the importance of the explanatory variables in the model. the logistic regression model (lrm)'s parameters were estimated using the maximum likelihood ratio, and the neural network method was also used to analyze the data. the neural network method achieved a much higher accuracy rate than the multiple logistic regression method, with a difference of 20%, indicating the superiority of the neural network method over the multiple logistic regression method. analysis, artificial neural networks, cancer, factors, leukemia, multiple logistic regression, wald , mle. introduction: in recent years, there has been an increase in the use of modern statistical methods and applications for analyzing classified data, particularly in fields such as medical, agricultural, and social research (alobeidi, 2013). this study discusses the use of two different statistical methods in analysis: artificial neural networks, which are an important product of artificial intelligence and simulate natural intelligence, specifically human intelligence. these two methods are known for their ability to interpret incomplete or noisy data, handle new types of problems, process data in parallel, and high flexibility compared to traditional mathematical methods. additionally, neural networks have surpassed the limitations of traditional solutions because all cells within the network process a huge amount of data quickly at the same time (davalo & naim, 1991). logistic regression analysis (lra), the second method, is an important statistical method that deals with analyzing classified data, especially in cases american journal of business management, economics and banking volume 13 june, 2023 p a g e | 75 www.americanjournal.org where the response variable is nominal or ordinal and consists of two levels (two classifications) or more (al-afifi, 2010; maiprasert & kitbumrungrat, 2012). the analysis using logistic regression does not assume any conditions regarding the distribution of explanatory variables, making it relatively better and more robust than many other methods. it is characterized by flexibility and simplicity, as well as giving a clear and meaningful interpretation and implications for describing the relationship between the response variable and explanatory variables. research objective the current research aims is to study some factors which lead to leukemia using a multiple logistic regression (mlr) model and an intelligent method represented by artificial neural networks (ann), and to compare between them. research problem regression models in general, and binary and multiple response logistic regression models in particular, are characterized by their high ability to model causal relationships between explanatory variables on the one hand and the dependent variable on the other hand. however, they suffer from some assumptions that, if not met, will lead to misleading results. therefore, more flexible methods with fewer assumptions compared to traditional regression models are used to avoid such problems. literature review artificial neural networks (ann) the relationship between statistics and ann has received significant and increasing attention from researchers and practitioners in both fields in recent years. many ideas related to ann are based on the fundamentals of statistics, and many statistical methods and techniques can be programmed using neural networks and building algorithms for them. the reason for this is due to the great similarity and congruence between the methods used in both fields (jarrah, 2003). the general principle of building ann is to develop a system for information processing to reach the closest point to human efficiency (omar, 1999). therefore, an ann is a computer system for information processing, consisting of a very large number of interconnected processing elements with a dynamic nature. its main function is the parallel division of network calculations. the neural network consists of a number of interconnected and homogeneous processing units, each of which is a computational tool that can model its behavior with simple mathematical equations (rao & raao, 1993). neural networks are named after their resemblance to the internal communication systems of biological neurons, as these units are inspired by the study of biological neural systems , figure 1 (newbold, 1974). figure 1. system of artificial neural networks american journal of business management, economics and banking volume 13 june, 2023 p a g e | 76 www.americanjournal.org 1components of an artificial neuron zurada (1997) listed the following components: 1. synapses: the neuron receives input signals from other connected cells through input channels, and these incoming signals are called inputs and are denoted by (xi, i = 1, 2, 3, 4, ..., n). 2. summation function: the function of this function is to unify the input signals into one signal. 3. activation function: this function aims to propagate the input value according to the type of function used according to the scale of the output value limits . 4. axon path's: the function of this channel is to send the output signal to other neurons, and it is considered an input signal to those cells, and the output signal is called outputs. 1. 2 types of artificial neural networks 1-2-1 feedforward neural networks these networks allow information to flow in only one direction, meaning that the data spreads from the back to the front (i.e., from the input layer to the output layer) because their structure lacks closed loops of connections between the layers (stergiou & siganos, 2006). 1-2-2 backpropagation neural networks (nnn) backpropagation networks allow information to flow in both directions, and they are complex and powerful. they are dynamic networks that continuously change their stability until reaching a point of equilibrium, and they remain there until the input changes and a new equilibrium needs to be found (stergiou & siganos, 2006). bnn is based on the concept of training the network using the mean square error, by finding the minimum value of the total error square for the output values computed by the network. the weights between the layers are updated until the optimal weights that provide the best fit for the model are achieved (al-nasser & al-obaidi, 2003). the key to an ann model is the structure of the information processing system that connects and organizes a large number of internally connected processing elements (neurons) that work together to solve specific problems. signals pass between nodes (neurons) through connecting lines, and each line is associated with a certain weight. the incoming signals to the node (neuron) are multiplied by these weights, and the weighted inputs are summed up in the nodes or neurons. then, the outputs of each node are processed by a non-linear function with a specific threshold called the activation function (stergiou & siganos, 2006). 1-3 activation function it is also known as conversion functions because it converts input values by mixing them with weights from one mathematical formula to another. it also has several forms, including linear and nonlinear, and is characterized by its ability to determine the type of relationship between inputs and outputs and forms of activation functions (wasserman, 1989; zurada, 1960). 1linear activation function a=f(n)=n…….(1) the derivative of this function is in this form f ̅(n)=1………(2) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 77 www.americanjournal.org 2logistics activation function this function is often used at the hidden layer of neural networks since the input values are basically real values (-∞, +∞) while the output values of the function for each node of the network are (0,1) and are according to the following formula: f(n)=(1 + e −n q )−1……..(3) this function can be derivated in this form f̅(n)=(f(n)(1-f(n)/q……..(4) 3-the step activation function this function is used in classification models, and its outputs depend entirely on the inputs. the output of the function equals (1) if the input is greater than or equal to (0), otherwise, the output equals (0). this function differs from the previous two functions in that it has no derivative. it can be expressed as: a=f(n)=n…….(5) a={0,n<0 1,n≥0 4-threshold activation function the threshold activation function is similar to the step function, as it has no derivative. the output values equal (+1) if the inputs are greater than or equal to (0), and (-1) if the inputs are less than (0). it can be expressed as: a=f(n)……(6) a={−1,n<0 1,n≥0 5bipolar sigmoid activation function this function is commonly used in feature estimation. the input values range from (-∞ to +∞), while the output values range from (-1 to +1). it can be expressed as: f(n)=tanh(n/q)=1-2/(1+e^(2n))......(7) the derivative of the function is given by:f(̅n )= 1−[f(n)]2 q …….(8) 1-4 backpropagation algorithm python the backward backpropagation is one of the most important supervised training algorithms for neural networks. its name comes from the fact that the error is propagated backward through the network from layer to layer. this algorithm relies on choosing a suitable error function, which is determined by the actual and desired output values, as well as the network's features such as weights and thresholds (arabic encyclopedia for computer and the internet, 2004) al-sheikhly (2003) states that training an ann using backpropagation involves three stages, as follows: 1. forward propagation of error. 2. backward propagation of error. 3. weight tuning. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 78 www.americanjournal.org during the forward propagation stage, the input signal is transmitted to each node in the hidden layer, and the activation value for each node in the hidden layer is calculated based on this signal. then, these nodes send their signals to each node in the output layer, and the activation value for each node in the output layer is calculated to form the network's response to the given input sample. during the training stage, each node in the output layer compares its calculated activation with the actual output value to determine the error value for that node. based on this error value, the error correction factor δk is calculated. the error correction factor δk is used to distribute the error among the nodes in the output layer and is then sent back to each node in the previous layer. this factor is also used to update the weights in the output and hidden layers. similarly, the error correction factor δj is calculated for each node in the hidden layer, and this factor is used to update the weights in the hidden and output layers. after determining all the error correction factors δ, the weights for all layers are adjusted simultaneously. the algorithm or methodology for this network can be summarized in the following steps: 1. generate initial weight values from a statistical distribution. 2. each node in the input layer receives input signals and sends them to all nodes in the hidden layer. 3. each node in the hidden layer aggregates weighted input signals according to the equation: hj = 2 / (1 + exp ( xiwij)) – 1 ……… (9) 4. applying the activation function to estimate the outputs of the hidden layer, and sending the activation values to all nodes in the output layer. 5. each node in the output layer aggregates weighted input signals according to the equation: )10(…………1 –)) ikwih j = 2 / (1 + exp ( ky 6. calculating the error for each output node by finding the difference between the activation value y_k and the target value t_k, as follows: )11( ……… ky – k= t ke the output of the neural network is compared with the real values to estimate the error according to the equation: )12( ……..) . f(v) ky-k= (t k where f(v) represents the logistic or tansig function when the output node is nonlinear and equals 1 when the function is linear. then, calculate the change in weight wjk using the following equation: wjk =  . k . hj ........ (13) 7. each node in the hidden layer aggregates weighted error signals from the output layer according to the equation: )14( ………. jkwk j = j then this value is multiplied by the activation function to calculate j , after which the change in the magnitude of the error vij is calculated and according to the equation: vjj =  . j . xi ……… (15) 8. update the weights of each node in the output layer, according to the equation: american journal of business management, economics and banking volume 13 june, 2023 p a g e | 79 www.americanjournal.org )16( …….. jkw(old) + jk(new) = w jkw then the weights for each node is updated in the hidden layer, according to the equation: )17( ………ijv(old) + ij(new) = v ijv 9. the network continues to update the weights "i.e. the process of learning and training" until the optimal weights are obtained. thus, the desired outputs are obtained, i.e. reaching the best fit for the model under study . where: xi: represents the network inputs, w: represents the weights between levels. 2. logistic regression logistic regression is used to find the best fit model that describes the relationship between a response variable (dependent) and one or more explanatory variables (independent). many natural phenomena exhibit non-linear behavior, and to analyze such phenomena, non-linear models are used. however, due to the difficulty in using these models, linear regression models are often used for this purpose. logistic regression models are one such statistical model used to describe and analyze such phenomena. the logistic model is used to describe the relationship between a response variable (y) and one independent variable (x) or several independent variables (x1, ..., xn) (al-afifi, 2010; ghanem & al-jaouni, 2011; johnson, 1998). when there is a binary response variable and one independent variable, the general formula for the logistic model is: 𝑝(𝑥) = 1 1+𝑒−𝛼−𝛽𝑥𝑖 …….(18) since: i=1,2,3,4,……,n, β and α: are the two parameters of the model to be estimated. β>0 p(x): the probability of the response xi: the explanatory variable where: −∞ <xi< ∞ & −∞ ≤ 𝑎 ≤ ∞ the above formula is known as the logistical response function and is characterized by the fact that p (x) is defined between (1,0) and that the two parameters (β, α) are unrestricted. however, in the case of each of the nominally dependent variables that have multiple responses consisting of two levels or two classifications or more and there are several independent variables. therefore we have the multiple logistic model; it is formulated as: 𝑝(𝑥) = 1 1+𝑒−𝑍 …….(19) where, z=a+b1x1+b2x2+………+bpxp………(20) there are two types of lrm, the first model is the two-response lrm and this model is used in the case if the response variable consists of two levels (two classifications) only. the second model is the multiple-response lrm and is used in the case if the response variable consists of three levels and more. 1-two-response logistic regression model the lrm is based on a basic assumption, which is that the dependent variable (y), the response variable that we are interested in studying, is a binary variable and follows the bernoulli distribution, and takes american journal of business management, economics and banking volume 13 june, 2023 p a g e | 80 www.americanjournal.org the value (1) with a probability of (π) and the value (0) with a probability of (1-π), that is, the occurrence of the response and not occurring (al-afifi, 2010; timm, 2002). 2. multiple response logistic regression model the multiple-response lrm is considered one of the important statistical models in analyzing classified data, and it is generally used when the response variable belongs to variables of nominal or ordinal type consisting of two levels or two classifications or more. likewise, the multiple-response lrm is a development and expansion of the two-response lrm, and it depends mainly on the multinomial distribution (al-afifi, 2010; maiprasert & kitbumrungrat, 2012). 2-1 logistic model assumptions zelen (1983) stated that there are many hypotheses for the logistics model, the most important of which is: 1. if the value of the dependent variable is confined or restricted to the period [1,0] 2. the values of the dependent variable are either (0) or (1) and the remainders are generally large and the value of (r2) is small. 3. the logistic model does not assume a specific distribution of the dependent variable, but it is assumed that its distribution is within the distributions of the exponential family (i.e., binomial distribution). 4. to ensure a sufficient number of items for the response variable, the sample sizes must be large in the logistic regression. 5. the logistic model does not assume a certain distribution of the explanatory variables, and there should not be a high correlation between the explanatory variables, because this causes problems in estimation. 6. there shouldn't be a linear relationship between the independent variable and the dependent variable, but it assumes linearity between the independent variables and the logarithm of probability (cook et al., 2001). 2-2 model estimation 2-2-1 maximum likelihood estimation the parameters of the multiple-response lrm will be estimated in the manner of greatest possibility (agresti, 1990; al-bayati, 2005; al-razami, 2000) which can be described as follows: the probability density function for a polynomial distribution is as follows : 𝑃𝑟(𝑌𝑖1 = 𝑦𝑖1, . . . . . , 𝑌𝑖𝑗 = 𝑦𝑖𝐽) = ( 𝑛𝑖 𝑦𝑖𝑗 ,……,𝑦𝑖𝐽 ) 𝜋𝑖1 𝑦𝑖1 . . . 𝜋 𝑖𝐽 𝑦𝑖𝐽 …….(21) hence, iji y ij y i  ....1 1 represents the percentage of response groups in the community.   ijyn i j j j xl  = = = 1 1 )()(  ……..(22) calculating the logarithm of the possible function, we get: 𝐿𝑁 𝐿(𝛽) = ∑ ∑ 𝑦𝑖𝑗 𝑙𝑜𝑔 𝜋𝑗(𝑥)𝑗𝑖……..(23) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 81 www.americanjournal.org substituting πj (x) into equation (23), we get: 𝐿𝑁 𝐿 (𝛽) = ∑ ∑ 𝑦𝑖𝑗 𝑙𝑜𝑔 𝑒 𝛼𝑗+𝛽𝑗 ′ 𝑥 1+∑ 𝑒 𝛼𝑗+𝛽𝑗 ′ 𝑥𝐽 𝑗=1 𝑗𝑖…….(24) = ∑ ∑ 𝑦𝑖𝑗(𝛼𝑗 + 𝛽𝑗 ′ 𝑥 )𝑗𝑖 − ∑ ∑ 𝑦𝑖𝑗 𝐿𝑜𝑔(1 + ∑ 𝑒𝛼𝑗+𝛽𝑗 ′ 𝑥𝐽 𝑗=1𝑗𝑖 )…….(25) by deriving the maximum possibility function with respect to the parameter vector (β) ∂lnl(β) ∂(β) = ∑ ∑ yij((αj+βj ′ x )ji ∂(β) − ∑ ∑ yij log(1+∑ e αj+βj ′ xj j=1 )ji ∂(β) ………(26) when equating the derivative to zero ( ∂lnl(β) ∂(β) = 0), we get natural equations, and the roots of these equations represent the values of the estimated parameters resulting from the process of maximization and because the equations are non-linear, we resort to using one of the iterative methods (newton raphson), which produces appropriate estimates according to the following formula: b(t + 1) = b(t) + {x ́ v(t)x} −1 x́r(t)…….(27) where, t : represents the number of cascades r : represents the remainder vector with dimension [n(g-1),1] v: is diag(v1 … … vn)and each vi is a square array written in the following form: vi = ni {ps (xi)(δst − pt(xi))}st……(28) and that δstis the kronecker delta and is defined by the following: δst=[ 1 s = t 0 s ≠ t ] accordingly, we can start from initial values by equating the feature vector to zero, and in the binary case, the graph or the usual least squares method can be used, or the estimates of the linear discrimination function can be used as initial values in estimating the features, as their use will reduce the number of successive cycles, and when obtaining the required convergence between sessions, these optimal estimates are required. 2-3 tests 2-3-1 wald one of the important tests used to test the significance of the effect of the independent variable on the dependent variable in non-linear models is the wald test. this test corresponds to the t-test used in linear models (garson, 2013). the formula for the wald test is as follows: 2) ˆ ˆ (       =   se wt ……..(29) in statistical analysis, ( ̂ ) represents the parameter estimate and (       ̂se ) represents the standard error of the parameter. the test value is compared to χ2 a chi-squared distribution with one degree of american journal of business management, economics and banking volume 13 june, 2023 p a g e | 82 www.americanjournal.org freedom. however, the accuracy of this test is questionable in small samples because the standard error may be large. menard (zelen, 1983) pointed out that large logit coefficients lead to large standard errors, which can reduce the accuracy of the wald statistic and lead to type ii errors. this is one of the drawbacks of the wald statistic, as very large effects can lead to large standard errors. in most cases, the results of this test are very similar to the results of the odds ratio test (i.e., they rarely differ). therefore, it is best to use the odds ratio test to test for the significance of variables with and without parameters. additionally, logistic regression analysis is sensitive to violations of assumptions about large sample sizes. for these reasons, the odds ratio test is generally preferred (cook et al., 2001). 2-3-2 likelihood ratio test if we want to test two models, the first () includes all the variables, and the second (lm2) includes a part of those variables, then in this case we use the likelihood-ratio test to show which of the two models has better significance than the other( dessens & janson, 2005). the formula for the probability test is: )30) ......(2log lm – 12 (log lm-) = 2/ lm 12 log (lm-d = whereas : lm1: represents the possibility function under the null hypothesis. lm1 lm2: represents the possibility function under the alternative hypothesis.lm2 the d value is close to the distribution of and compared with the tabular value of the distribution with a degree of freedom that represents the difference between the parameters of the two models. 2-4 model quality the quality of relevance means how appropriate the statistical model is to the data of the study sample. the quality of relevance measures measure the closeness between the observed and expected values of the model. here are some important tests for relevance quality. 2-4-1 chi square test χ2 it is one of the important tests used to fit or define the quality of the model, and it shows how the model describes the response variable, which is equal to the sum of squares. the differences between the observed and expected values divided by the expected values, and estimating the suitability of the model includes the convergence of the expected values from the observed values, as in the following formula (cowan, 1994): .............(31) = − ected ectedobserved exp )exp(2 2  where (observed) means the observed values and (expected) means the expected values, and compares the value of the test statistic with the χ2 distribution with a degree of freedom equal to the number of classes minus the number of parameters in the logistic model. d.f = n – p ….(32 whereas: p: represents the number of parameters, n: represents the number of items american journal of business management, economics and banking volume 13 june, 2023 p a g e | 83 www.americanjournal.org 2-4-2 hosmer–lemeshow this test is widely used in estimating the quality of fit of the model and allows any number of independent variables, which may be continuous or discrete, and this test is somewhat similar to the χ2 test for the quality of fit. this test is as in the χ2 method for the quality of fit and approaches the χ2 distribution with a degree of freedom equal to the number of classes minus the number of parameters in the logistic regression model. with a small sample size, this test is weak and this test requires a sample size of more than 400 observations (cowan, 1994), and it is possible using equation (31). where the (observed) means the observed values and (expected) means the expected values 2-5 the coefficient of determination r2 r2 does not explain the quality of fit of the model as in linear regression, but it is an indicator of the importance of explanatory variables to predict the response variable and then measure the effect size (agresti, 2002). we can mention the cox & snell r2 formula as follows: (33) ..... n bl bl scr /2 )(ˆ ) 0 (ˆ 12                     −= the nagelkerke r2 formula can be explained by the following formula : (34) .....             − = nbl csr nr /2)} )0( (ˆ{1 2 2 the l(β(0)) represents the possibility function of the model under the null hypothesis, and l(β) represents the possibility function of the model under the alternative hypothesis. the large sample size gives power to the test analysis of the logistic model, as the larger the sample size, the greater the test power of the model results this section includes an applied study of the multiple lrm using the maximum likelihood method, as well as an analysis of ann for data on cml obtained from a master's thesis by the researcher (mirdas, 2023). the data represent 150 observations and four variables, which are as follows: • type of cml infection: as a response variable with three categories (chronic phase cp, accelerated phase ap, and blast phase bp), represented by the code (1) for cp patients, (2) for ap patients, and (3) for bp patients. • patient weight: the first explanatory variable. • blood platelets (plt): the second explanatory variable. • number of cancer cells in bone marrow (bme): the third explanatory variable. statistical data analysis using multiple logistic regression model fitness quality american journal of business management, economics and banking volume 13 june, 2023 p a g e | 84 www.americanjournal.org to measure the goodness of fit of the model, in the case of the multiple lrm, the likelihood ratio test is used, which follows a chi-square distribution. the outputs of the spss program are as follows: table 1 goodness of fit of the multiple lrm sig. df chi-square -2 log likelihood model 0.000 6 42.240 323.294 fixed 281.054 final model according to the values of sig in table 1, the relationship between the explanatory variables and the response variable is significant. this means that there is a difference in the model when the explanatory variables are present compared to when they are absent. other tests also support this conclusion, as shown in table 2: table 2 goodness of fit of the multiple lrm using non-parametric tests sig. df chi-square model 0.573 290 284.938 pearson 0.658 290 279.667 deviance it can be observed from table 2 that the sig values for both tests are greater than the significance level (0.05), indicating the importance of the explanatory variables in the model. parameters estimation of the multiple lrm the parameters of the multiple lrm were estimated using the maximum likelihood method. table 3 summarizes the estimates of these parameters, along with their standard errors, wald statistics, and accompanying sig values: table 3. estimates of parameters of the multiple lrm sig. df wald std. error b cml (1) 0.950 1 0.004 2.450 0.155 fix cml=1.00 0.829 1 0.047 0.034 -0.007 weight 0.090 1 2.867 0.004 0.007 plt 0.000 1 14.954 6.054 -23.410 bme 0.028 1 4.843 2.341 5.151 fix cml=2.00 0.040 1 4.222 0.034 -0.069 weight 0.754 1 0.098 0.004 -0.001 plt 0.061 1 3.506 3.025 -5.665 bme it can be observed that the effect of the constant term and the explanatory variables on the response variable varies from category to category. for example, the effect of the constant term on the logit of the chronic phase is 0.155, while it is 5.151 for the ap. additionally, the weight variable has a negative 1 the value (3) was used as a reference category. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 85 www.americanjournal.org effect on the logit of the chronic phase with a regression coefficient of -0.007, and -0.069 for the accelerated phase of the illness. the results of the classification are exhibited in table 4 as follows: table 4. confusion matrix for the multiple lrm correct rating ratio predictor classification total blast phase accelerated phase chronic phase 80.6% 62 1 11 50 chronic phase observation 39.6% 48 7 19 22 accelerated phase 32.5% 40 13 5 22 blast phase 54.7% 150 21 35 94 total table 4 shows that the correct classification rate (ccr) for the cp is 80.6%, but it is lower for both the pb and bp. the overall ccr is only 54.7%, which is relatively low. statistical data analysis of using ann the results of the ann were obtained from the spss program after applying it to the study data. the network for the study model is shown in figure 1. figure 1. artificial neural networks the estimated parameters were as following: table 5. estimated parameters predictor predicted hidden layer 1 output layer h(1:1) h(1:2) h(1:3) cml=1 cml=2 cml=3 input layer (bias) 0.062 -0.772 1.069 weight -0.655 1.823 -0.914 plt 1.428 1.84 0.543 bme -1.889 2.864 3.01 hidden layer 1 (bias) -0.551 -0.469 1.204 h(1:1) 2.318 -0.402 -1.773 h(1:2) 2.053 -2.714 0.982 h(1:3) -1.422 2.045 -1.309 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 86 www.americanjournal.org this method achieved a much higher correct classification rate than the multiple lrm, as shown in table 6 below: table 6. confusion matrix for the artificial neural network correct rating ratio predictor classification total blast phase accelerated phase chronic phase 91.9% 62 2 3 57 chronic phase observation 62.5% 48 3 30 15 accelerated phase 65.0% 40 26 4 10 blast phase 75.3% 150 31 37 82 total it can be seen from table 6 that the ccr for the chronic phase is 91.9%, which is higher than the ccr in the multiple logistic regression model (80.6%). the correct classification rate for the accelerated phase is 62.5%, which is higher than in the lrm (39.6%), and the ccr for the blast phase is 65%, which is higher than in the lrm (32.5%). therefore, the overall ccr for the ann method is 75.3%, which is higher than the overall ccr in the multiple lrm (54.7%). conclusions from the results, we conclude that the correct classification rate (ccr) when modeling using the multiple logistic regression method is approximately 55%, while ccr when using the artificial neural network method was approximately 75%. this indicates a superiority of the artificial neural network (ann) method by about 20%. recommendations 1. adopting the use of ann models in studies and research due to their high accuracy, low error rates, and adaptability in dealing with data as they are considered adaptive methods. 2. it is important to measure the quality of fit of the model in the case of mlr to determine the significance of the relationship between response and explanatory variables before starting the analysis process. 3. developing the healthcare sector by the relevant authorities and create a plan to increase health awareness through educating and encouraging citizens to have regular check-ups for early detection of blood cancer diseases. 4. it is necessary to record complete information and data for each patient in their own medical records to benefit from them as data is the basis for conducting research and studies. references 1. agresti, a. ( 2002). categorical data analysis , (2 nd edition). hoboken: wiey. 2. agresti, a. (1990). categorical data analysis . new york: john wiley sons , inc. 3. al-afifi, r .m. (2010). the use of multinomial logistic regression model on physical violence data. (master thesis). gaza, alazhar university. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 87 www.americanjournal.org 4. al-bayati, h. i. s. (2005). path analysis in the logistic regression model with a practical application, (unpublished master's thesis). al-mustansiriya university. 5. al-nasser, a. h. & al-obaidi, m. a. (2003). using neural networks to predict future values of irregular time series in seasonal length. iraqi journal of statistical sciences, 3, (6), 1-16 6. al-obeidi, m. (2013). artificial neural networks. computer research journal, 4(1) 7. al-razami, a. y. (2000). employing the logistics model and severity measures to study the epidemiology of surgical nervous system diseases at martyr adnan khairallah specialist hospital (unpublished master's thesis). al-mustansiriya university 8. al-sheikhly, e. a. l. (2003). designing a nonlinear dynamic mathematical system using neural networks (narmax) for analytical and predictive purposes of sales activity in the baghdad electricity company, (unpublished master thesis). university of baghdad. 9. cook, d., dixon,p., duckworth,w. m., kaiser,m. s., koehler,k., meeker, w. q. & stephenson, w. r. (2001). binary response and logistic regression analysis. in project beyond traditional statistical methods (pp. 1-23).usa: iowa state university nsf/ ili 10. cowan, r. (1994). technological forecasting and social change. journal technological forecasting and social change, 47, 89-102. 11. davalo, e. & naim, p. (1991). neural networks. macmillan, hong kong. 12. dessens, j., & janson, w. (2005). logistic regression analysis. new : york wiley. 13. garson, g. d. (2013). hierarchical linear modeling: guide and applications. sage. 14. ghanem, a. m. & al-jaouni, f. k. (2011). the use of the two-response logistic regression technique in studying the most important economic and social determinants of family income adequacy, an applied study on a random sample of families in damascus governorate. damascus journal of economic and legal sciences, 27(1), 113 – 132 15. jarrah, r. a. (2003). principal component analysis using artificial neural networks with application to breast cancer patients. (unpublished phd thesis). iraq, university of mosul. 16. johnson, r. w. (1998). statistical analysis of multiple variables from an applied point of view. king saud university. 17. maiprasert, d. & kitbumrungrat, k. (2012). comparison logistic regression and discriminant analysis in classification groups for breast cancer. international journal of computer science and network security (ijcsns), 12(5), 44-52 18. mirdas, m. a. (2023). a comparison between the parametric and non-parametric methods using multiple logistic regression with a practical application (unpublished master's thesis). iraq: wasit university. 19. newbold, p. (1974). the exact likelihood function for a mixed autoregressive-moving average process. biometrika, 61(3), 423-426. 20. omar, m. m. a.(1999). artificial neural networks: a comparative study, (higher diploma thesis). the national center for computing and informatics. 21. rao, v. b., & raao, h. v. (1993). c++ neural network and fuzzy logic, management information. inc., new york, ny, 408. 22. stergiou, c. & siganos, d. (2006). neural networks. surveys and presentations in information systems engineering. surprise 96 journal. 23. the arabic encyclopedia for computer and the internet. (2004).neural networks, retrieved from: http://www.c4arab.com.mejhar.php http://www.c4arab.com.mejhar.php/ american journal of business management, economics and banking volume 13 june, 2023 p a g e | 88 www.americanjournal.org 24. timm, n. h. (ed.). (2002). applied multivariate analysis. new york, ny: springer 25. wasserman, p. d. (1989). neural computing: theory and practice. van nostrand reinhold co. 26. zelen, m. (1983). biostatistical science as a discipline: a look into the future. biometrics 39 827837. 27. zurada, j. m. (1960). introduction to artificial neural system. jaico publishing house. 28. zurada. (1997). introduction to artificial neural network. jaico publishing house. appendix leukemia patient data no. cml weight plt (bme) no. cml weight plt (bme) 1 1 53 147 0.03 76 1 66 331 0.03 2 1 60 139 0.01 77 1 68 213 0.02 3 2 52 311 0.09 78 3 63 194 0.24 4 1 51 130 0.04 79 2 61 217 0.18 5 1 61 186 0.03 80 1 63 251 0.02 6 2 63 194 0.18 81 1 63 217 0.03 7 3 70 315 0.24 82 1 66 321 0.04 8 1 57 215 0.03 83 3 51 312 0.23 9 1 55 197 0.04 84 1 67 215 0.01 10 2 57 311 0.14 85 1 71 314 0.01 11 1 63 219 0.03 86 1 61 215 0.01 12 1 67 312 0.04 87 1 53 313 0.02 13 1 71 221 0.02 88 2 62 211 0.09 14 3 59 332 0.25 89 1 63 281 0.04 15 1 61 212 0.03 90 1 67 223 0.04 16 1 66 211 0.04 91 1 71 277 0.03 17 1 70 311 0.02 92 1 61 217 0.04 18 1 68 286 0.01 93 2 59 319 0.14 19 1 65 147 0.02 94 1 52 271 0.03 20 2 61 137 0.17 95 1 51 233 0.04 21 3 67 360 0.25 96 3 53 247 0.23 22 1 60 294 0.03 97 1 71 313 0.01 23 1 70 148 0.01 98 1 68 306 0.03 24 1 65 393 0.04 99 1 65 217 0.02 25 3 70 325 0.23 100 2 53 333 0.18 26 2 75 312 0.18 101 1 71 193 0.01 27 2 63 330 0.09 102 1 66 268 0.04 28 1 65 314 0.01 103 1 75 256 0.03 29 1 60 299 0.03 104 3 53 321 0.24 30 1 61 260 0.01 105 1 72 222 0.04 31 1 52 321 0.02 106 1 59 187 0.03 32 1 50 360 0.03 107 1 73 212 0.01 33 1 61 315 0.04 108 1 68 325 0.02 34 1 66 217 0.01 109 1 63 198 0.03 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 89 www.americanjournal.org 35 1 52 314 0.02 110 1 59 219 0.04 36 1 60 187 0.03 111 2 52 227 0.12 37 2 61 220 0.11 112 1 57 300 0.04 38 1 58 265 0.01 113 1 50 311 0.01 39 1 66 255 0.01 114 1 49 343 0.03 40 1 52 255 0.01 115 3 51 288 0.23 41 3 62 315 0.22 116 1 63 216 0.03 42 1 51 180 0.01 117 1 67 325 0.01 43 1 61 257 0.02 118 1 73 213 0.03 44 1 65 251 0.03 119 1 64 313 0.02 45 2 70 341 0.13 120 2 51 279 0.15 46 1 60 266 0.02 121 1 67 317 0.04 47 1 67 317 0.02 122 1 66 316 0.01 48 3 59 218 0.24 123 1 72 213 0.02 49 1 71 219 0.01 124 2 52 331 0.17 50 1 62 307 0.01 125 1 62 227 0.03 51 1 52 222 0.03 126 1 48 232 0.02 52 1 55 237 0.04 127 1 49 331 0.03 53 1 58 315 0.01 128 1 69 234 0.04 54 1 51 357 0.02 129 2 51 331 0.16 55 1 71 313 0.01 130 1 67 239 0.04 56 1 65 310 0.02 131 1 62 277 0.02 57 1 70 218 0.01 132 3 51 312 0.24 58 1 60 317 0.01 133 1 62 212 0.04 59 2 52 218 0.07 134 1 67 214 0.01 60 1 55 218 0.01 135 1 71 341 0.02 61 1 72 211 0.02 136 1 62 279 0.03 62 3 58 351 0.23 137 2 53 377 0.16 63 1 51 217 0.02 138 1 62 288 0.02 64 1 71 315 0.01 139 1 61 361 0.03 65 2 61 217 0.11 140 1 72 241 0.04 66 1 68 317 0.03 141 1 67 342 0.01 67 1 73 217 0.01 142 1 57 271 0.03 68 1 61 219 0.03 143 3 49 197 0.03 69 1 61 317 0.04 144 1 71 313 0.03 70 1 62 211 0.01 145 2 48 201 0.04 71 1 71 306 0.03 146 1 67 319 0.02 72 1 61 211 0.01 147 1 56 287 0.01 73 1 65 312 0.03 148 1 64 267 0.03 74 1 62 213 0.03 149 1 72 312 0.01 75 2 61 222 0.13 150 1 67 2.79 0.03 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 87 www.americanjournal.org the balanced scorecard and its role in evaluating the performance of economic entities (an applied study in the directorate of civil defense / almuthanna) amer mansoor hasoon(1) al-muthanna university / college of dentistry amermansoor@mu.edu.iq mr. qassem lovan jahil (2) civil defense directorate / al-muthanna governorate ayad raheem jalfan(3) al-muthanna university / college of science ayad.raheem@mu.edu.iq a b s t r a c t k e y w o r d s most of the economic (service) entities that operate in the iraqi environment depend on traditional methods in the process of evaluating their performance, if these methods do not give a clear and comprehensive picture of the performance of these entities because these methods are based on financial measures only, which requires the need to use one of the accounting techniques the administrative balance, which is the balanced scorecard as a modern tool for evaluating performance and giving a clear and comprehensive picture of the performance of service entities by relying on financial and non-financial measures. therefore, the research aims to study and analyze the role of the balanced scorecard in evaluating the performance of the directorate of civil defense / muthanna through the application of this technique in its perspectives. the four through visits and field experiences in the district and relying on the directorate’s data for the years (2018) and (2019), as well as a questionnaire form that the researchers designed and distributed to a random sample of the governorate’s residents for the purpose of analyzing their opinions about the extent of their satisfaction with the performance of the directorate, the research sample. what the research found the application of the balanced scorecard with its four perspectives in the directorate of civil defense / muthanna governorate (research sample) contributed to measuring and evaluating the directorate’s performance from the financial and non-financial terms, in a american journal of business management, economics and banking volume 12 may, 2023 p a g e | 88 www.americanjournal.org clear and comprehensive manner, as it was found that there was an improvement in performance for the year 2019 over the year 2018 according to the financial perspective, and that there is a great agreement about the satisfaction of the people of the province with the performance of the civil defense directorate and their dedication to their duties in accordance with the perspective of learning and growth based on the outcomes of the questionnaire and the spss program, while there was a clear decrease in performance in 2019 compared to the performance in 2018 according to the internal operations perspective. the performance is equal for the years 2018 and 2019 according to the learning and growth perspective introduction the performance appraisal process is one of the most important administrative functions that the economic entity should carry out to measure the success of the plans that were developed in advance to achieve the desired objectives of the economic entity, by comparing the actual performance with the planned performance to identify weaknesses and take the necessary corrective measures to address them and ensure that they are not repeated. in the future, identifying strengths and working to support them and generalizing them on the aspects in which weaknesses have appeared, which leads to improving the performance of the economic entity by reaching the best levels of efficiency and effectiveness in practicing its various activities. the traditional performance appraisal process approved by economic entities for the purpose of evaluating their performance is inappropriate and useless because it relies on financial measures only because these measures are no longer sufficient to give a clear and comprehensive picture of the performance of the activities of the economic entity, which prompted the economic entities to search for appropriate tools to evaluate their performance. which achieves integration between financial and non-financial measures and thus enables the economic entity to evaluate its performance in a clear and comprehensive way, and one of the most important modern tools for performance evaluation is the balanced scorecard (bsc), and the research aims to explain the role of the balanced scorecard in measuring and evaluating the performance of the economic entity in a clear and comprehensive way, and thus improving the efficiency and effectiveness of the performance of the economic entity, through practical application in the directorate of civil defense / al-muthanna, and in order to achieve the objectives of the research, it was divided into four sections. in evaluating performance, the third topic dealt with the application of the balanced scorecard in the directorate of civil defense / al-muthanna to evaluate its performance, and the research was concluded with the fourth topic, which dealt with the most prominent conclusions and recommendations reached by the researchers. the first topic / research methodology first / the research problem: most of the economic entities (services) that operate in the iraqi environment rely on traditional methods to evaluate their performance and to this day, as these methods have become unable to give a clear and comprehensive picture of the performance of the economic entity because these methods are limited to financial measures only , and the lack and weakness of the interest of these entities in applying modern techniques to measure and evaluate performance to give a clear and comprehensive picture of the performance of the activities of the various economic entity american journal of business management, economics and banking volume 12 may, 2023 p a g e | 89 www.americanjournal.org due to its reliance on non-financial measures in addition to financial measures, including the balanced scorecard, and accordingly the research problem is embodied in the following question: does the use of the balanced scorecard contribute to evaluation of the performance of economic (service) entities. second / the importance of research the importance of the research is reflected in the use of one of the modern management accounting techniques, which is the balanced scorecard, in evaluating the performance of the directorate of civil defense / al-muthanna in a comprehensive and clear manner, due to its dependence on financial and non-financial measures, which are more in line with developments and changes in the service business environment, as well as an indication of the extent the directorate's success in achieving its objectives. third / research objectives : 1-statement of the cognitive foundations of the balanced scorecard 2-studying and analyzing the role of the balanced scorecard in evaluating the performance of the directorate of civil defense / muthanna. fourth / research hypothesis: the research is based on a basic hypothesis as follows: the use of the balanced scorecard contributes to evaluating the performance of economic (service) entities. this hypothesis is divided into four sub-hypotheses, as follows: the first sub-hypothesis: the performance of the civil defense directorate in muthanna can be evaluated using the financial perspective of the balanced scorecard. the second sub-hypothesis: the performance of the directorate of civil defense in muthanna can be evaluated using the clients' perspective of the balanced scorecard. the third sub-hypothesis: the performance of the civil defense directorate in muthanna can be evaluated using the internal operations perspective of the balanced scorecard. the fourth sub-hypothesis: the performance of the directorate of civil defense in muthanna can be evaluated using the learning and growth perspective of the balanced scorecard. fifth / the field of research: the directorate of civil defense / al-muthanna branch was chosen as a place for research for the purpose of conducting the practical side therein. sixth/sources of data and information collection and research methodology:the research was carried out by relying on data and information collected from the following sources : 1sources of the theoretical side: the deductive approach of the research was relied upon through the use of books, research, periodicals, letters, dissertations, and arabic and foreign articles that researchers were able to obtain from libraries and the global information network (internet). 2sources of the practical side: the inductive approach of the research was relied upon through the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 90 www.americanjournal.org field visits that the researchers made to the subject of the research, personal interviews with managers and stakeholders in the subject of the research, documents, records, and the trial balance for the years (2018, 2019) for the subject of the research. seventh / search form figure (1) the search form source: prepared by researchers the second topic / the theoretical side first: balanced scorecard: its origins and concept the balanced scorecard (bsc) dates back to 1988, when kpmg, one of the largest professional services companies in the world, designed a performance appraisal system for apple, an american multinational company that designs and manufactures consumer electronics and computer software products, and in 1992 norton & kaplan's proposals on the concept of bsc these proposals included an explanation of the concept of (bsc) as a comprehensive management system that includes four perspectives that help the management of the economic entity in obtaining complete information very quickly, as well as contribute to knowing the economic situation of the economic entity, in addition to being a comprehensive management system for translating the entity's strategy the economic entity is transformed into work, and its main value is to achieve the economic entity's vision and strategy, as the main objective of the system is to transform the economic entity's strategy into actual measures to the balanced scorecard learning and development perspective the perspective of internal operations customer perspective financial perspective cause and effect relationship non-financial scales financial scales performance evaluation american journal of business management, economics and banking volume 12 may, 2023 p a g e | 91 www.americanjournal.org improve competitiveness (hwang & rau 218: 2007), and (bsc) has confirmed the possibility of economic entities from improving the management of its intangible assets by integrating the measurement of intangible assets into its administrative systems (kaplan, 2010: 2)), and (bsc) is distinguished by the characteristic of balance through the use of financial and non-financial performance measures to evaluate the performance of the economic entity in the short and long term in one report (horngren et. 2018:501), and the following table (1) shows the definitions of the balanced scorecard (bsc) by some researchers or writers. table (1) definitions of balanced scorecard (bsc) the definition source a set of performance goals and results, which show how well the economic entity performs in achieving its objectives related to stakeholders. it is also an administrative tool that contributes to recognizing the responsibility of the economic entity towards all stakeholders, such as employees, customers, business companies, suppliers, shareholders, and society . (maher et al.,2011:694) an integrated set of performance measures that are derived from the strategy of the economic entity, and the strategy is a theory that explains how to achieve the objectives of the economic entity . (garrison et al.,2015:519) translating the tasks and strategy of the economic entity into a set of performance measures that provide a framework for the implementation of this strategy, as the balanced scorecard does not focus on financial goals only, but also highlights the non-financial (operational) goals that the economic entity must achieve and maintain. (horngren et al,. 2018:501) from the foregoing, it can be said that the balanced scorecard (bsc) is a practical management technique used by economic entities to manage their strategies in the long term, based on its four perspectives (learning and growth, internal operations, financial, and customers) and through which the tasks and strategy of the economic entity are translated into goals and indicators, as it aims to achieve a balance between the organizational vision and the strategic mission. secondly, perspectives of the balanced scorecard bsc contributes to providing the necessary information that helps the management of the economic entity to establish a strategic focus by translating the economic entity strategy into operational objectives and performance measures for four different perspectives: the customer perspective, the financial perspective, the internal operations perspective, and the learning and growth perspective (hansen et al., 2009: 471). 1-financial perspective this perspective focuses on the financial condition of the economic entity, as it answers the following questions: how do we view our shareholders? is the economic entity financially sound? are the strategies and efforts exerted reflected in the financial figures? typical financial measures include return on investment, profit margin, and value shareholders, etc. although these are the traditional measures of performance measurement, they are still important because they will determine whether american journal of business management, economics and banking volume 12 may, 2023 p a g e | 92 www.americanjournal.org the operational improvements are reflected in the financial numbers, and therefore the correlation between financial and operational measures should be known and a good balance should be achieved between them ( sahasrabuddhe, 2021: 33 & raut) . 2customer perspective this perspective focuses on customers, as its measures are used to assess the extent of customer satisfaction, and these measures may include some indicators such as time commitment, level of quality of service provided, and other indicators, as the main objective of this perspective is to ensure customer satisfaction with the service provided by economic entity, as this will encourage their behavior towards it (oliveira et al., 2021: 8). 3internal operations perspective the internal operations perspective focuses on the activities carried out by the economic entity that enable it to be distinguished and thus lead to achieving the expected desires of customers efficiently and effectively, as well as achieving distinguished financial results that are satisfactory to shareholders. this perspective also includes innovations that lead to the introduction of new services that satisfy existing and new customers ( abd elaal et al., 2021: 132) . 4-learning and development perspective this perspective focuses on the infrastructure of the economic entity represented in human capital, regulations and regulatory procedures. this perspective includes determining how the economic entity can continue to develop, innovate and create higher value by focusing on developing the capabilities of its employees. there are multiple measures for this perspective, which include: employee satisfaction measure, employee retention measure, employee training measure, and other measures related to the efficiency of the economic entity (atieh, 2016: 313 & al-haj ahmad). third / the concept of performance evaluation performance appraisal is one of the administrative methods that should be practiced in any economic entity, whether service or profit-oriented, as it shows the ability of that entity to achieve its goals, identify deviations from those goals and try to address them, which helps the economic entity’s management in making the necessary decisions to define its goals. and its strategic path (long-term) (al-nuaimi, 2007: 131). there have been several definitions of the performance appraisal process, including the following: elsharawy defined performance evaluation as the periodic review or verification of the activities and operations of the economic entity in order to ensure the achievement of the set goals (elsharawy, 2006:32) . others defined it as the process through which managers at all levels acquire information about the performance of tasks within the economic entity, and judge this performance in accordance with predetermined standards according to plans and goals, as the process of performance evaluation takes place on several different levels in the economic entity, starting with senior management. then middle management down to the level of individual performance. (blocheret al., 2010: 801). through the foregoing, it can be said that performance evaluation is one of the important functions practiced by the economic entity management. its aim is to verify the extent of achievement and american journal of business management, economics and banking volume 12 may, 2023 p a g e | 93 www.americanjournal.org achievement of the set and planned goals by comparing the actual performance with the planned performance, identifying positive deviations, working to support and generalizing them, identifying negative deviations, searching for their causes, and taking action. the necessary procedures to address it and to ensure that it does not recur in the future. fourth / objectives of the performance appraisal process the performance appraisal process aims to achieve the following: (al-mayali, 48:2020): 1diagnosing weaknesses in the performance of the economic entity and then proposing the necessary solutions for the purpose of taking corrective measures to address them. 2verifying that the actual performance has been achieved and in accordance with the set goals and plans. 3ensure that the actual performance is achieved efficiently through the optimal use of available resources. 4the performance appraisal process encourages the departments and divisions of the economic entity to compete with each other to improve their performance. 5evaluation of the ability of managers and their effective bearing of the responsibility entrusted to them. 6-the performance appraisal process helps to make comparisons between the performance of the departments and activities of the economic entity. the third topic / the practical side first / an overview of the research sample (directorate of civil defense / al-muthanna) the first firefighting cell was formed in the city of samawah in 1969, and it used to occupy the building of the former municipal department. in 1978, the directorate of civil defense / al-muthanna was formed to provide its services in the field of firefighting. about coordination with the neighboring governorates in case they or those governorates need documented attribution: 1upgrading the technical performance of the staff and in line with the requirements, tasks and duties of the directorate. 2activating the spirit of cooperation between the directorate and the governorate community. 3providing consultations related to safety and security conditions for the public and private sectors. the directorate's vision is to strive to be distinguished, creative, professionally and scientifically efficient, influential on the governorate scale, and of a wonderful level among the directorates of the internal security forces in the governorate, as well as the directorates of civil defense in all governorates. second / the organizational structure of the directorate figure (2) shows the approved organizational structure of the directorate, which can be adopted when preparing the directorate's plans and tasks, and thus organizing those tasks within departments, centers and divisions from the highest level down to the lowest level. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 94 www.americanjournal.org figure (1) the organizational structure of the directorate of civil defense in al-muthanna governorate/2022 third / applying the balanced scorecard to evaluate the performance of the directorate of civil defense / al-muthanna director of civil defense associate director follow-up officer department of administrative and financial affairs fire and safety department technical affairs department training division practical unit personnel division division of industrial prevention and safety division of communications and informatics theoretical training unit the accounts division division of machinery and equipment repair games and fitness unit rescue and ambulance division unexploded ordnance division al meera division fire department administration and services division incident response division planning and followup division legal division division of relations and media investigative council unit operations division engineering works division statistics unit internal relations unit administration unit shelters unit follow-up unit legal litigation unit media and photography unit control unit individuals unit social welfare unit civil defense services unit individuals unit civil defense centers and their affiliated detachments american journal of business management, economics and banking volume 12 may, 2023 p a g e | 95 www.americanjournal.org the balanced scorecard (bsc) perspectives will be applied to the data of the civil defense directorate / al-muthanna for the purpose of evaluating its performance in terms of financial and non-financial aspects, based on financial and non-financial indicators (2018 and 2019) to indicate the extent to which the planned goals were achieved, to identify the obstacles and problems that prevented the achievement of these goals, to search for their causes, and to develop the necessary solutions to address them. financial perspective 1 this perspective is one of the most important perspectives in the balanced scorecard, as it describes the tangible results of the strategy in traditional financial terms, and those results represent measures directed at achieving financial goals, and there are many indicators that can be used to measure the financial perspective, but the researchers have chosen the most important indicators available for analysis, depending on the data obtained from the accounts division in the directorate, and the financial perspective will be applied in the directorate (the research sample) through the following indicators. table (2) financial perspective indicators calculation 2019 calculation 2018 measure target perspective 9013933300 9122735100 = 98,8% 8826558996 9001687900 = 98% the actual expense to the customization efficiency of disbursement as in the budget financial 8698533740 8801740000 = 98,8% 8726384596 8961642900 = 97,4% the actual expense to the customization efficiency of disbursement for employee compensation 142788810 147535100 = 96,8% 48731400 51140000 = 95,3% the actual expense to the customization efficiency of disbursement for commodity requirements 2860000 3020000 = 94,7% 0 100000 = 0% the actual expense to the customization efficiency of disbursement for service requirements 76450750 77140000 = 99,1% 51443000 51810000 = 99,3% the actual expense to the customization efficiency of disbursement for maintenance account source: prepared by researchers based on data from the directorate table (3) measures of the financial perspective the degree indicator 2019 the degree indicator 2018 the percentages adopted in the distribution measure target perspective 2 98,8 2 98% 90% or more 2 the actual expense to the customization financial 90% or less 1 2 98,8 2 97,4% 90% or more 2 the actual expense to the customization 90% or less 1 2 96,8 2 95,3% 90% or more 2 the actual expense to the customization 90% or less 1 94,7% 90% or more 3 the actual expense to the customization 45%-90% 2 1 0% 45% or less 1 2 99,1 2 99,3% 90% or more 2 the actual expense to the customization 90% or less 1 11 9 11 financial perspective score american journal of business management, economics and banking volume 12 may, 2023 p a g e | 96 www.americanjournal.org source: the table was prepared by the researchers based on the data of the directorate from table (2) above, it is clear that the directorate achieved in the year (2018) a number of (9) points out of the total standard points from the financial perspective, amounting to (11) points, i.e. (82%), which is a very good indicator, while it achieved in the year (2019) the number of points (11) out of the total standard points for the financial perspective amounting to (11) points, i.e. (100%), which is an excellent indicator, and this means that the directorate has improved its financial performance in the year (2019), which indicates the efficiency of the directorate in exploiting the financial allocations allocated to it within the general budget. through the foregoing, the first sub-hypothesis can be accepted, which states (the financial performance of the directorate can be evaluated through the indicators of the financial perspective of the balanced scorecard). 2customer perspective serving the people of the governorate is the main goal of the civil defense directorate through providing its services, whether in the field of carrying out fire and rescue duties and dealing with unexploded bombs, as well as its preventive and educational services represented by conducting checks on vital projects and practices, holding seminars and courses, distributing informative posters, and delivering civil defense services to the farthest point in the governorate has published emergency lines, including the emergency number (115). citizens' satisfaction will be measured through a questionnaire distributed to a random sample of citizens in the governorate, which includes the following paragraphs: table (4) analysis of the paragraphs of the customer service perspective questionnaire arithmetic mean strongly disagree disagree neutral agree strongl y agree paragraphs sequ ence 3.6 0 0 2 5 11 the machinery and equipment used in the directorate are compatible with modern developments. 1 3.6 0 0 1 8 9 the employees of the directorate are distinguished by the good quality of firefighters and rescuers. 2 3.6 2 1 2 5 8 the workplace is compatible with the nature of the service provided. 3 3.6 0 1 4 7 6 the directorate seeks to achieve the highest degree of acceptance among citizens. 4 3.6 0 3 1 8 6 the directorate seeks to extend its services to all areas of the governorate. 5 3.6 0 0 1 4 13 civil defense men are distinguished by honesty 6 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 97 www.americanjournal.org and diligence when carrying out their duties. 3.6 0 1 2 6 9 the directorate is distinguished by its rapid response when reporting incidents. 7 3.6 0 0 4 4 10 the employees of the directorate deal with citizens in a decent manner and with respect. 8 3.6 0 0 4 8 6 the employees of the directorate have sufficient experience to complete the tasks and duties assigned to them. 9 source: prepared by researchers based on the output of the statistical program (spss) the researchers used the statistical program (spss) for the purpose of analyzing the paragraphs of the questionnaire to find out the extent of satisfaction of the people of the governorate with the performance of the directorate, and the five-point likert scale was adopted in expressing the opinions of the individuals of the research sample, and each option was assigned a degree and the respondents’ answers were approved degrees (1,2,3, 4,5), if their answers are in favor of the direction (strongly agree, agree, neutral, disagree, strongly disagree) . it is clear from the previous table (4) that the arithmetic mean of all the paragraphs of the questionnaire was (3.6), which is higher than the default arithmetic mean of the research, which is (3), which means that there is a great agreement about the satisfaction of the people of the governorate with the performance of the directorate of civil defense and their dedication to their duties assigned to them upon them. through the foregoing, the second sub-hypothesis can be accepted, which states (the directorate's performance can be evaluated through citizen service through the indicators of the customers' perspective of the balanced scorecard). 3the perspective of internal operations the internal operations perspective is concerned with the activities and operations that the directorate should be interested in, in a way that enables it to excel and achieve its goals and the requirements of the citizen. table (5) indicators of the internal operations perspective calculation 2019 calculation 2018 measure target perspective 6701 5239 = 127,9% 5235 5237 = 99,9% that have been implemented to the planned lists of vital projects internal operations 428 434 = 98,6% 430 422 = 101,9% that have been implemented to the planned the number of on-site courses 496 502 = 98,8% 498 490 = 101,6% that have been implemented to the planned number of seminars american journal of business management, economics and banking volume 12 may, 2023 p a g e | 98 www.americanjournal.org 187 208 = 89,9% 183 200 = 91,5% that have been implemented to the planned number of lectures 264 265 = 99,6% 261 253 = 103,1% that have been implemented to the planned number of practices 1547 1552 = 99,7% 1548 1540 = 100,5% that have been implemented to the planned the number of times the guards inspected source: the table was prepared by the researchers based on the data of the directorate table (6) measures of the internal operations perspective degree the indicator 2019 degree the indicator 2018 the proportions adopted in the distribution the standard the measure perspective 3 127,9% 100% or more 3 that have been implemented to the planned internal operations 2 99,9% 90%-100% 2 90% or less 1 3 that have been implemented to the planned 2 98,6% 100% or more 2 3 101,9% 90%-100% 1 90% or less 3 that have been implemented to the planned 2 98,8% 2 91,5% 100% or more 1 2 90%-100% 2 that have been implemented to the planned 1 89,9% 103,1% 90% or less 1 3 90% or more 3 3 100,5% 100% or more 1 that have been implemented to the planned 2 99,7% 3 90%-100% 2 90% or less 1 12 16 17 total internal operations perspective score source: prepared by researchers based on data from the directorate we note from table (6) above that the directorate achieved in the year (2018) a number of (16) points out of the total standard points from the perspective of internal operations, amounting to (17) points, i.e. (94%), which is an excellent indicator, while it achieved in (2018). 2019) the number of points (12) out of the total standard points for the perspective of internal operations, which amounted to (17) points, i.e. (70.6%), which is a clear decrease in the performance of the directorate in implementing its annual plan for the year (2019), which was approved by the directorate of civil defense. from the foregoing, the third sub-hypothesis can be accepted, which states (the directorate's performance can be evaluated to implement the annual plan through the indicators of the internal operations perspective of the balanced scorecard) . american journal of business management, economics and banking volume 12 may, 2023 p a g e | 99 www.americanjournal.org 4learning and development perspective the perspective of learning and growth is concerned with measuring the future performance of the institution, as it focuses on developing the capabilities of its employees and developing their skills as they represent the crucial success factor. this perspective will be applied to the research sample through the following indicators: table (7) indicators of the learning and growth perspective calculation 2019 calculation 2018 target perspective 113 536 = 21,1% 69 540 = 12,8% the number of letters of thanks addressed to the total number of associates associate rewards and incentives learning and growth 543 536 = 101,3% 570 540 = 105,5% the number of participants in the courses to the total number of participants training and qualification of associates 2 536 = 0,37% 3 540 = 0,56% the number of those leaving work (resignation, at their request) to the total number of employees employee turnover source: prepared by researchers based on data from the directorate table (5) measures of learning and growth perspective calculation / 2019 calculation / 2018 the proporti ons adopted in the distributi on the standard the measure perspective 2 113 536 = 21,1% 20% or more measure the number of letters of thanks addressed to the total number of associates associate rewards and incentives learning and growth 21,1% 1 12,8% 2 2 2 105,5% 1 the number of participants in the courses to the total number of participants training and qualification of associates 101,3% 2 2 0,56% 1 the number of those leaving work (resignation, at their request) to the total number of employees employee turnover source: prepared by researchers based on data from the directorate from the previous table (8), we note that the directorate achieved in the years (2018) and (2019) a number of (5) points out of the total standard points for the perspective of learning and growth, which amounted to (6) points, i.e. (83.33%), which is a very good indicator. , which indicates the efficiency of the directorate in raising the morale of the members by directing letters of thanks and appreciation, american journal of business management, economics and banking volume 12 may, 2023 p a g e | 100 www.americanjournal.org as well as qualifying them through the participation of the largest possible number of them in the training courses included in the annual training plan approved by the directorate of civil defense, which reflects positively on keeping the members and not leaving them to work either by resignation or retirement at their request. through the foregoing, the third sub-hypothesis can be accepted, which states (the directorate's performance can be evaluated for its employees through the indicators of the learning and growth perspective of the balanced scorecard). the fourth topic / conclusions and recommendations conclusions 1-the directorate's non-application of the financial and non-financial balanced scorecard indicators in evaluating its performance and its reliance on traditional systems in measuring and evaluating performance. 2the decrease in the number of scorecard points for the perspective of internal operations for the years (2018) and (2019) from the standard performance standards by (16) and (12), respectively . 3-in order to successfully implement the balanced scorecard in the directorate, this requires the availability of a set of requirements, the most important of which is that the strategic objectives be quantifiable using appropriate measures, as well as the existence of motivation for the directorate and its employees to apply the balanced scorecard. 4the decrease in the number of scorecard points for the perspective of learning and growth for the years (2018) and (2019) from the standard performance standards, by (5) for each year. 5it appears from the results of the analysis of the financial perspective data that the number of scorecard points for this perspective decreased during (2018) from the standard performance standards by (9), while the directorate was able during (2019) to avoid weaknesses and reach the standard points of (11). 6the application of the balanced scorecard with its four perspectives in the directorate of civil defense / al-muthanna governorate (the research sample) contributed to measuring and evaluating the performance of the directorate in terms of financial and non-financial terms, in a clear and comprehensive way, as it was found that there is an improvement in performance for the year 2019 compared to the year 2018 according to the financial perspective, and there is a great agreement about the satisfaction of the people of the governorate with the performance of the directorate of civil defense and their dedication to their duties entrusted to them according to the clients’ perspective based on the outputs of the questionnaire and the program ((spss), while there was a clear decrease in performance in 2019 compared to the performance in 2018 according to the perspective of internal operations and the performance was equal for the years 2018 and 2019 according to the perspective of learning and growth . recommendations 1the need for the directorate to apply the balanced scorecard technique to evaluate its performance, and the application can be generalized in all formations and directorates of the ministry of interior. 2the need to make efforts to raise the number of scorecard points for the perspective of internal operations for the years (2018) and (2019) and try to reach the number of standard balanced scorecard points of (17) . 3the need to provide a set of goals and indicators that are quantifiable american journal of business management, economics and banking volume 12 may, 2023 p a g e | 101 www.americanjournal.org and in accordance with the capabilities and capabilities of the directorate, and that they have clear features for its employees, as well as the availability of motivation and motivation for implementation. 4the need to make efforts to raise the number of scorecard points for the learning and growth perspective for the years (2018) and (2019) and try to reach the number of standard balanced scorecard points of (6), and to continue on the same path with regard to the financial perspective. references 1. a table of allocations for each section of disbursement within the directorate's budget for the years 2018 ad and 2019 ad. 2. abdelaal, a. a., al shobaki, m. j., abu-naser, s. s., & el talla, s. a. (2021). the reality of applying the balanced scorecard in the egyptian ceramic companies. international journal of academic management science research (ijamsr), 5(10). 3. accounting.” sixteenth edition, this book is printed on acid-free paper. 1. library of congress cataloging-in-publication data. 4. abd, w. h., & kazem, d. a. (2022). the relationship between the balanced scorecard and the cobit-5 criterion in improving banking performance, an applied research in a sample of commercial banks listed in the iraqi stock exchange. world economics and finance bulletin, 13, 82-91. 5. abd, w. h., kareem, a. d., & jassim, e. e. (2022). the role of the modern coso framework in evaluating the internal control system through the mediating role of the internal auditor. res militaris, . 6. al-mayali, amer mansour hassoun, (2020), the use of costing technology based on performancebased activities to evaluate performance in economic entitys _ an applied study in the general company for textile and leather industries, a letter submitted to the college of administration and economics / university of baghdad to obtain a master's degree in accounting sciences. 7. al-naimi, sabah abdel-wahhab abdel-razzaq, (2007), strategic cost management techniques and their role in implementing and evaluating functional strategies in the contemporary business environment_ an applied study in the general company for the vegetable oil industry, a dissertation submitted to the college of administration and economics / university of baghdad to obtain a phd in philosophy accounting. 8. blocher, edward j., stout, david e., cokins, gary,(2010), cost management: a strategic emphasis, fifth edition, new york, mcgraw_ hill companies, inc. 9. elsharawy, hatem,(2009), developing controlling and performance evaluation of multinational companies operating in egypt, zur erlangung des wirtschaftswissenschaftlichen doktor grades der wirtschaftswissenschaftlichen fakultät der georg-august-universität zu göttingen. 10. garrison, ray h. noreen, eric w., and brewer, peter c. (2015). “managerial 11. hansen, d., mowen, m., & guan, l.(2009). “cost management: accounting and control: accounting and control. in rob dewey”, sixth edition. 12. horngren, charles t. datar, srikant m. rajan, madhav v. wynder, monte. maguire william. tan, rebecca. (2018). “cost accounting a managerial emphasis.” 14thedition, isbn: 0132109174. 13. hwang, ming hon, and hsin rau. (2007). “design and planning of the balanced scorecard: a case study.” human systems management 26 (3): 217–27. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 102 www.americanjournal.org kaplan, robert s. (2010). “conceptual foundations of the balanced scorecard.” handbooks of management accounting research 3: 1253–69. 14. maher michael w , lanen, william n., shannon w. anderson,., and david t. dearman. (2011). “fundamentals of cost accounting.” issues in accounting education. vol. 25. 15. oliveira, c., martins, a., camilleri, m. a., & jayantilal, s. (2021). using the balanced scorecard for strategic communication and performance management. in strategic corporate communication in the digital age. emerald publishing limited. 6 al-haj , a.,&atieh.(2016). updating balanced scorecard model for the evaluation of the strategic performance in greater amman municipality. european scientific journal november 2016 edition vol.12, no.31. 16. raut, r. w., & sahasrabuddhe, a. v. (2021). performance evaluation and comparative analysis of selected public and private sector banks in india using balanced scorecard. prajnan american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 67 www.americanjournal.org the growth of the volume of deposits and its impact on bank credit a/p dr. sanaa hasan hilo techniques of materials management, department, institute of administration rusafa middle technical university, baghdad sanahsanhelo@gmail.com a b s t r a c t k e y w o r d s the research dealt with the growth of the volume of deposits and its impact on bank credit, as the research attention is focused on a sample of private iraqi banks, and the research problem was to identify the growth of the volume of deposits and its impact on bank credit, and the research sought to achieve a number of cognitive goals based on a main hypothesis, so the research chose (5) banks to collect data and information related to the research and that the research period was (2012-2021) and in order to process the data, many financial and statistical methods were used (linear regression rate of change, and anova analysis) statistical methods have produced a number of results, perhaps the most prominent of which is the presence of the significant impact of bank deposits on bank credit. in the context of discussing the results, the applied research emphasized the interest in the growth of the volume of deposits and its impact on bank credit, perhaps the most prominent of which is the continuous and permanent interest in analyzing deposits through the financial ratios used because of their major role in identifying the rate of change in deposits because of its impact on bank credit. introduction deposits are the most important sources of financing for commercial banks, so banks are keen to develop them, as it is a banking obligation that the bank must return to the depositor upon demand or according to the agreed terms, so banks must work to develop the volume of bank deposits by increasing customer confidence, which depends on the bank's good reputation and financial position, and the clear policy towards customers pushes customers to deposit their money in the bank with confidence and reassurance, so the large volume of deposits contributes to the bank's ability in granting credit, which varies according to its stability and postponement. the banking system itself is a credit system due to the role of banks in evaluating and determining effective credit, and the increase in competition between banks has led to an increase in the volume of american journal of business management, economics and banking volume 11 april, 2023 p a g e | 68 www.americanjournal.org credit facilities granted by them, accompanied by an increase in the volume of exposure to credit risks, and thus bank administrations can no longer deal with credit by traditional methods. therefore, the management of banks needs an appropriate method concerned with setting goals and strategies that can be expressed with appropriate indicators for the nature and conditions of the modern environment that direct management efforts towards the essential factors for the success of the bank, which result in achieving long-term economic benefits. based on the importance mentioned above came this research, which aims to identify the growth of the volume of deposits and its impact on bank credit to the reality of a number of private iraqi banks as the research started from a basic problem of what the impact of the growth of the volume of deposits in bank credit and aims to measure deposits of banks sample research and included the research on the main hypothesis is (the presence of a significant effect of the volume of deposits in bank credit) and adopted financial statements and annual reports of banks sample research in the collection of data and the information on the applied side with the use of many statistical methods the results have produced an impact relationship for the growth of the volume of deposits in bank credit. 2the concept and importance of bank deposits banks work to mobilize savings through current or savings bank deposits that form the basis in the field of lending or investment (majumdar, n, 2010: 7) and the deposit is defined as (a money that someone deposits with the bank to be committed to return it to the depositor upon request or in accordance with the agreed terms and can also be defined as debts owed to their owners on the liability of commercial banks and can be used to discharge liability or debt at the same time (abdul hamid, 2000: 59) can also be defined as (money deposited by persons and institutions with commercial banks for the purpose of safety and often with the aim of obtaining interest and deposits are one of the basic banking business to perform other banking activities such as (lending and investment) and the deposit system depends on the confidence of the public banking (abdul hamid, 2010: 51) it is one of the most important sources of financing for banks that achieve profits, so banks compete to attract deposits by various means (good, 2011: 18) 2.1 types of bank deposits deposits are classified according to different criteria, including deposits according to maturity, which can be classified into: 2.1.1 time deposits under this type of deposit, there is an agreement between the bank and the depositor, where a specific amount is deposited with the bank, which it may not withdraw before a certain date, and the bank also gives its customer a document of the deposited amount, and at the end of the period, the customer submits the document to the bank and receives the amount plus interest for the said period (rashid, 2009: 349) 2.1.2 deposits with notices (notification) under this type, customers deposit their money for different purposes such as investment, as the amounts deposited with the bank without specifying a specific period, but the withdrawal requires submitting a written request after a predetermined period to be agreed upon with the bank in implementation of the customer's desire, and the owners of these deposits charge interest on their deposits at rates close to interest rates on term deposits according to competition between banks and the term of the deposit (abdullah, 2009: 130) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 69 www.americanjournal.org 2.1.3 savings deposits under these deposits, an agreement is made between the bank and the customer to deposit an amount of water to obtain interest, and the customer has the right to withdraw the deposit at any time without prior notification, and savings deposits are mainly targeted at professionals and middle-income customers to help them deposit their small savings, and it is characterized by ease of opening an account and the possibility of depositing at any time (somashekar, 2009: 5) 3the concept of bank credit credit is defined as the granting of an amount of money to a person, whether an individual or a business company, to be used for a specific purpose and within a pre-agreed period of time and under certain conditions in return for a material return and guarantees that enable the bank to recover its loan in the event that the customer stops paying (khatib, 2004: 4). it is also defined as the supply of money from the bank to the borrower in the form of loans to an individual, government, or organization (josephine, 2010:46). bank credit is the trust that a bank gives to a customer when it puts at its disposal a sum of money for use in specific areas and for an agreed period (abdul hamid, 2007: 144). bank loans are classified according to activity or purpose (consumer, productive, and investment loans), according to collateral (guaranteed, unsecured) and according to the term (short, long-term) (bouatros, 2000:41). the importance of granting credit to projects for the purposes of expansion or making new investments in order to achieve the goals of economic development that contribute to increasing production and providing employment opportunities in society (ademuv, a., 2006: 8). various economic activities receive credit to enable them to meet operating expenses for the purchase of machinery and equipment. government agencies receive credit for capital expenditures (adeniyi, 2006:6). the bank's credit policy, which is set by the senior management of the bank, has a major role in directing credit, according to which the areas of use of funds intended for lending are determined according to specific rules and conditions and guarantees for the safety of the loan, which aims to achieve returns (al-ali, 2013: 149) and it also contributes to planning and controlling goals, as their absence leads to differences in the basis of decision-making. therefore, the credit policy must be clear and written for all interested and stakeholders (david, charles, 2001: 55) and the credit policy specifies a review of the company's performance to expand the extension of credit privileges (franklin, 2010: 5). 4 research hypotheses by relying on the research outline and the nature of the relationship between the independent variable and the dependent variable, the following hypotheses have been formulated : the main hypothesis / there is a relationship between the deposit impact of credit banking 5research sample and tools a sample of iraqi private banks, which number (5) banks, was selected because they have shares that are traded in the stock market and have a long history in the field of banking and have used financial and statistical means to determine relationships and test hypotheses, including (financial ratios, and test (f)) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 70 www.americanjournal.org 6 – research limits a. spatial boundaries the research was applied in the iraqi banking sector and included five of the iraqi private banks, namely (middle east bank, commercial bank of iraq, iraqi credit bank, united investment bank, gulf commercial bank,) in iraq / baghdad btime limits: the period of time between (2012-2021), which relates to the financial statements of private commercial banks, was approved, as the financial statements, statements and annual reports of each of the banks of the research sample were approved. 7. analyze data and discuss results this paragraph is devoted to presenting the results of the research and analysis using financial measures for all research variables and testing research hypotheses. table (1) total bank deposits for the research sample for the period 2012-2021 (millions of dinars) year bank 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 iraqi commercial bank 112077 96691 121063 90506 121221 134713 135132 146614 272760 159989 united bank for investment 246693 349519 186156 228902 139124 103903 128221 69438 152234 294799 gulf bank 260780 417143 455212 370218 427200 265803 232934 201579 180767 204966 iraqi credit bank 354914 380529 311749 157787 179282 144170 162366 208358 217501 159111 middle east bank 615784 551856 358117 331665 326517 332579 437921 279215 266696 278784 source / annual report of banks, research sample table (1) shows the total bank deposits of banks in the research sample for a period of 10 years. deposits varied during the years, as they ranged between high and low. the same is the case between banks, with clear fluctuation. deposits in the above table for all banks, where the united bank for investment and the gulf bank enjoyed a good level of deposits and achieved a balance with the level of credit shown in table (3), while the iraqi credit bank did not achieve a balance between deposits and credit, although its deposits are of a high level, but they are it does not match the credit granted, which means that it is not the best investment for deposits table (2) growth of bank deposits for the research sample for the period 2012-2021 (%) year bank 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 iraqi commercial bank 0.34 -0.14 0.25 -0.25 0.34 0.11 0.01 0.09 0.86 -0.41 united bank for investment -0.18 0.42 -0.47 0.23 -0.39 -0.25 0.23 -0.46 0.19 0.94 gulf bank 0.20 0.60 0.09 -0.19 0.15 -0.38 -0.12 -0.13 -0.10 0.13 iraqi credit bank 0.36 0.07 -0.18 -0.49 0.14 -0.20 0.13 0.28 0.04 -0.27 middle east bank 0.22 -0.10 -0.35 -0.07 -0.02 0.02 0.32 -0.36 -0.04 0.04 source / annual report of banks, research sample american journal of business management, economics and banking volume 11 april, 2023 p a g e | 71 www.americanjournal.org table (2) shows the growth of the volume of bank deposits of the research sample banks during 10 years, as the clear fluctuation between banks, as well as during the years, with rise and fall, which means instability or lack of a clear strategy for these banks in attracting deposits table (3) total bank credit for the research sample for the period 2012-2021 (millions of dinars) year bank 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 iraqi commercial bank 23110 3956 7154 9101 9903 10789 11932 11446 18840 27136 united bank for investment 383970 537759 381490 324228 272651 329052 341001 252215 118842 149013 gulf bank 214344 286574 288100 330993 287550 204274 171492 144623 127002 112006 iraqi credit bank 7458 2531 1228 6644 2930 8355 8085 8085 7476 6937 middle east bank 198350 208867 187865 149924 126346 100252 94572 94051 85136 84550 source / annual report of banks, research sample table (3) shows the total bank credit of banks in the research sample for a period of 10 years. credit has varied during the years, as it ranged between high and low. the same is the case between banks, as there is clear fluctuation. the credit level was achieved with the united bank for investment, followed by the khaleeji commercial bank, but the lowest credit level was only achieved with the iraqi credit table (4) bank credit growth for the research sample for the period 2012-2021 (%) year bank 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 iraqi commercial bank 1.79 -0.83 0.81 0.27 0.09 0.09 0.11 -0.04 0.65 0.44 united bank for investment 0.37 0.40 -0.29 -0.15 -0.16 0.21 0.04 -0.26 -0.53 0.25 gulf bank 1.44 0.34 0.01 0.15 -0.13 -0.29 -0.16 -0.16 -0.12 -0.12 iraqi credit bank -0.26 -0.66 -0.51 4.41 -056 1.85 -0.03 0 -0.08 -0.07 middle east bank 2.34 0.05 -0.10 -0.20 -0.16 -0.21 -0.05 -0.01 -0.01 -0.01 source / annual report of banks, research sample 5test research hypotheses through the simple linear regression to know the impact relationships of the relationship between the deposit impact of credit banking and the value of (f) calculated (4.894) and moral (0.032) which indicates that there is a significant impact of the deposit impact of credit banking the coefficient of determination (r2) tables (5,6) below show the results table (5) form summary model summaryb model summaryb model r r square adjusted r square std. error of the estimate change statistics durbinwatson r square change f change df1 df2 sig. f change 1 .304a .093 .074 129886.360 .093 4.894 1 48 .032 1.985 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 72 www.americanjournal.org a. predictors: (constant), x1 b. dependent variable: x2 table (5) shows a summary of the model. as noted, the (durbin-watson) value is a good value, as it is an average value and is close to (2), meaning that the errors of successive observations are independent of each other, which is the test of independence table (6) test value (f) anovaa model sum of squares df mean square f sig. 1 regression 8257202477 2.297 1 82572024772 .297 4.894 .032b residual 8097823985 45.783 48 16870466636 .370 total 8923544233 18.080 49 a. dependent variable: x2 b. predictors: (constant), x1 table (6) shows the (f) test, and as noted, its value is (4.894), with a significance of (0.032), which is greater than the tabular value of (4.08), and at a significant level (0.05), which means that there is a significant effect of deposits in bank credit 8conclusions this paragraph aims at the most important conclusions of the research from the analysis and testing of hypotheses. therefore, the following conclusions have been reached: the research indicated that the employment of loans in relation to assets was below the required level for the banks, the research sample, which is a negative indicator that leads to the freezing of funds without investment, although the banking law no. 94 of 2004 encourages banks to increase the credit granted to the economic sectors and advance them for the benefit of the economy, and there must be a balance between the total loans and total deposits, as we note some of the banks in the research sample were of high risk. an effect relationship indicates the growth of the volume of deposits in bank credit, and this came in conformity with the main research hypothesis. therefore, the need for the research sample banks to determine the different levels of credit and to stand on the size of the credit portfolio, because of the proper employment and investment of credit. non-performing loans should be avoided through extensive study and analysis of credit granted to banks to avoid risks and loss of loans and credit. banks must strike a balance between granted credit and deposits to avoid high risk or freezing of capital. it also requires banks to pay attention to analyzing deposits and credit, which contributes to determining the bank’s competitiveness in the financial market and the enhancement of the market value and thus its reflection in the bank's reputation. it also requires credit analysis for each bank and the role of each element of credit that leads to a credit portfolio of high quality. . american journal of business management, economics and banking volume 11 april, 2023 p a g e | 73 www.americanjournal.org references 1. the official annual reports of the banks, the research sample for the period from 2012-2021 / the iraqi securities commission, the official website. 2. hassan, salah, (2011), “banks and the risks of global financial markets”, dar al-kitab alhadith, cairo, egypt. 3. majumdar, n.c. , (2010), "fundamentals of modern banking", newcentral book agency (p) ltd. , india 4. somashekar, n.t., (2009), “banking” new age international (p) ltd.,publishers, new delhi, india 5. al-ali, asaad hamid, (2013) management of commercial banks, first edition, al-zakhira publishing.and distribution, baghdad, iraq. 6. abdelhak bouatrous, (2000) al-wajeez in commercial banks, mentouri university, constantine, algeria. 7. rashid sadiq al-shammari (2009), banking management: reality and practical applications, safaa publishing house 7 walto distribution, amman, jordan. 8. abdel-hamid, abdel-muttalib, (2000) universal banks: operations and management, first edition, university house for publishing and distribution, alexandria, egypt. 9. abdel-hamid, abdel-muttalib, (2007) universal banks: their operations and management, university house for publishing and distribution, alexandria, egypt. 10. manal khatib, (2004), the cost of credit, expenses, and measuring risk by application to banks syrian business, ma thesis, faculty of economics, university of aleppo, syria 11. amidu, mohammed and hinson, robert (2006). credit risk, capital structure and lending decisions of banks in ghana, banks and bank systems, vol. 1, no. 1. 12. adeniyi, o.m. (2006) bank credit and economic development in nigeria: a case study of deposit money banks .jos: university of jos, 13. david & charles, beim o., calomiris w, (2001) eerging financial markets, mc graw hill, irwin new york. 14. joseph and david, dayetalz, kathor, (2010), the economics of money and international finance 6th ed, me graw hill. 15. franklin, allen, douglas, gale (2010), optimal financial crises, the journal of finance, vol., liii, no.4. 16. abdullah, khaled amin, and al-trad, ismail ibrahim, (2006), (banking operations department).local and international), first edition, wael publishing house, amman, jordan. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 140 www.americanjournal.org analysis and results of territorial indicators of investment activity in uzbekistan karimova komila daniyarovna candidate of economic sciences, tashkent institute of finance, tashkent city, uzbekistan. e-mail: karimovakd@gmail.com a b s t r a c t k e y w o r d s the article provides an in-depth analysis of regional indicators of investment activity in the country. science-based proposals and recommendations have been developed to focus on important aspects of investment activity in the effective conduct of investment activities in the regions, to increase local investment activity, as well as to continuously develop the level of activity in regional investment policy. action strategy, investment policy, investment activity, investment fund, domestic and foreign investment, free economic zones, investment activity, securities. introduction: in the modern conditions of the development of the global economy of the world, one of the necessary conditions for ensuring the stable growth of the national economy is the existence of a developed financial intermediation system. at this point, it is very appropriate to quote the following comments of the president of the republic of uzbekistan: “world experience shows that any country that has pursued an active investment policy has achieved stable growth of its economy. that’s why investment is the driver of the economy, in uzbek terms, the heart of the economy, it’s no exaggeration” [1]. our country has a unique role in reducing mutual economic differences and inconsistencies between regions in social and economic development. in its place, the rational use of these opportunities creates the basis for the effective use of all available resources in the regions and the structural improvement of the regional economy. in the “strategy of actions for the further development of the republic of uzbekistan in 2017-2021 [2]” tasks such as modernization of production, carrying out an active investment policy and further expanding the economic potential of the regions as a result of their implementation, as well as assessing the investment efficiency in terms of increasing the export potential, have been defined. as a result of socio-economic reforms implemented in our country, it leads to an increase in the need not only for internal sources of investments, but also for other sources. therefore, it is important to attract foreign investments in a high volume and to use them effectively. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 141 www.americanjournal.org 2. literature review in the western economic literature, financial markets are referred to as a set of market institutions that direct the flow of money from the accumulator to the borrower [3]. frederick mishkin refers to markets that serve to transfer money from people with surplus funds to those in short supply [4]. definitions, a financial market is a market in which redistribution of temporarily vacant funds through financial intermediaries is based on the use of financial instruments. interpretation of “investment potential” as a set of investment resources, consisting of part of the accumulated capital, expressed in the form of investment demand in the investment market, which has the potential to become a real investment demand that meets the material, financial and intellectual needs of capital reproduction reaches [5]. the role of foreign investment in ensuring the competitiveness of national enterprises, the opportunities and conditions for the formation of an effective competitive environment for sectors of the economy have been studied by many economists. in particular, the researches of foreign economists c. dilek and k. hakan are of special importance in this regard. according to researchers, foreign investment in innovation in industrial enterprises is an effective mechanism to overcome the problematic processes associated with increasing labor productivity, saving financial, labor and material resources and improving the quality of products and services [6]. the attractiveness of the investment climate, the economic development of each region depends on the potential of capital and labor resources, the level of their use. it is generally accepted that the economic potential of a region and its potential is determined by the production of vital goods through the efficient use of all the complex resources available there [7]. capital market participants, investors and intermediaries can be distinguished as participants of the financial market. in this case, the obvious borrowers are essentially borrowers. investors place their capital through intermediaries [8]. the activity of corporations can be understood as a large business, an arsenal that drives the flow of investment [9]. 3. research methodology in this study, methods such as targeted development, systematic and comparative analysis, expert assessment and economic statistics were widely used in the development of scientifically based conclusions and recommendations based on a detailed analysis of the volume of investments in fixed capital in the regions of the republic of uzbekistan, systematization of the analysis results. 4. analysis and discussion of results in the investment policy of our republic, achieving proportional development of our country's regions and territorially socio-economically stable development has a special place. in recent years, positive changes have been observed in regions lagging behind in attracting investments and developing exportable products. this, in turn, creates a big difference in the volume of export-import operations. tashkent city, tashkent, bukhara, samaraqand and navoi regions are leading in the volume of investments (table 1). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 142 www.americanjournal.org table 1 capitalized investments in the territory of the republic of uzbekistan [10] bln. soum territories 2018 2019 2020 2021 2022 republic of uzbekistan 124231,3 195927,3 210195,1 239552,6 269857,5 republic of karakalpakstan 6757,8 8750,6 7089,8 8110,7 10099,8 andijan 4711,9 7452,1 9622,6 11176,6 14758,6 bukhara 9610,9 10366,6 12183,9 20528,3 21138,0 jizzakh 3606,3 7900,9 12545,4 9233,6 10763,1 kashkadarya 16518,5 24462,5 20557,6 17359,1 16181,5 navoi 10579,5 17646,3 15688,4 15020,1 19396,1 namangan 8158,1 12084,9 12007,2 12982,0 14348,2 samarkand 7061,4 10266,7 14656,4 15641,6 21955,2 surkhandarya 7240,6 11835,1 10068,2 12037,8 11507,3 syrdarya 2699,3 5869,1 7191,9 8051,8 12574,7 tashkent 11226,9 20353,9 21148,6 28113,6 34954,7 fergana 5539,1 8685,4 11040,0 12625,2 15396,7 khorezm 3013,8 5032,0 5391,8 8292,0 8806,6 tashkent city 26435,7 42458,1 50371,3 58172,7 56725,8 these regions have modernized a number of industries and introduced modern technologies at the expense of attracted investments, including foreign investments, and as a result have a high share in the country’s exports. thus, as a result of the implementation of structural changes in the national economy in recent years, an opportunity was created to increase the scale of production in the country. table 2 growth rates of investments in fixed capital in the regions of the republic of uzbekistan, in percentage terms compared to the previous еar [10] territories 2018 2019 2020 2021 2022 republic of uzbekistan 129,9 138,1 95,6 102,9 100,9 republic of karakalpakstan 169,9 100,3 69,9 105,1 113,2 andijan 113,7 129,0 110,6 106,0 119,9 bukhara 60,6 95,9 104,7 147,4 92,0 jizzakh 158,1 194,9 147,4 72,4 108,6 kashkadarya 112,4 131,2 76,5 77,8 80,8 navoi 188,0 144,3 77,1 86,0 118,2 namangan 178,1 131,1 88,0 100,5 101,2 samarkand 131,4 134,5 128,8 98,7 129,5 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 143 www.americanjournal.org surkhandarya 164,2 144,0 77,4 109,7 87,1 syrdarya 131,0 186,0 111,2 107,7 137,6 tashkent 139,9 158,5 92,2 120,3 108,2 fergana 145,9 132,0 113,5 105,7 112,3 khorezm 111,7 150,7 92,7 139,3 94,5 tashkent city 138,2 145,8 108,6 105,0 87,0 investment activity in our country is taking shape with a unique trend. in particular, when the rate of investment development is analyzed by region, we observe unstable conditions in some regions (table 2). for example, in surkhandarya and jizzakh regions, there is instability in the growth rates of the last five years, especially jizzakh region recorded 194.9 percent in 2019 compared to the previous year, respectively, it recorded only 72.4 percent in 2021. finally, in 2022, the average growth rate of the republic compared to the previous year fell as a result of the decrease in the flow of investments to our country, and as a result recorded only 100.9 percent. however, despite the low average growth rate in 2022, compared to 2021, the growth rates of the republic of karakalpakstan, andijan, fergana, syrdarya, khorezm, samarkand and navoi regions have accelerated. the highest growth was observed in syrdarya region (137.6%), samarkand region (129.5%) and andijan region (119.9%). further improvement of investment activities means the implementation of extensive measures to attract foreign or domestic investments to the regions. in other words, it represents the effective use of investment and mutual funds. in our opinion, it is necessary to develop investment funds on a regional scale and improve them taking into account the characteristics of regions [11]. 5. conclusion in conclusion, it is necessary to pay attention to the important aspects of investment activities in the effective implementation of investment activities in the regions. in particular, we believe that it is important to create investment attraction mechanisms and to increase local investment activity, to establish investment funds and to continuously develop them [12]. based on the conducted research, we think that the following should be paid attention to when organizing investment funds: creation of legal and normative bases for the formation of territorial fund funds, development and introduction of criteria determining the allocation of state funds in a stratified manner depending on the socio-economic development of the regions; implementation of the legal basis of the ratio of allocation of public and private sector funds to a specific project, determining the terms of selection of the projects submitted to the competition [13]; formation of a list of specific documents required for directing state funds to investment funds, to increase the transparency of information about the possibilities of the fund among investors [14]. literatura/reference: 1. address of the president of the republic of uzbekistan shavkat mirziyoyev to the deputies of the oliy majlis on december 28, 2018. 2. decree of the president of the republic of uzbekistan dated february 7, 2017 no. pf-4947 “on the action strategy for the five priority areas of development of the republic of uzbekistan in 2017american journal of business management, economics and banking volume 13 june, 2023 p a g e | 144 www.americanjournal.org 2021”. t.: 7.02.2017 3. dolan e.j., campbell k.d. money, banking and monetary policy. m.; spb., 1993. s. 15. 4. frederick s. mishkin, kent matthews and massimo giuliodori. the economics of money, banking and financial markets. uk. pearson, 2013. p.3.; frederic s. mishkin, stanley g. eakins. financial markets and institutions. usa. prentice hall, 2012. p.2. 5. tumusov f.s. investment potential of the region: theory, problems, practice. – m., “economics”, 1999. 272-p. 6. dilek cetindamar, hakan kilitcioglu, (2013), “measuring the competitiveness of a firm for an award system”, competitiveness review: an international business journal incorporating journal of global competitiveness, vol. 23 iss: 1 pp. 7. http://dx.doi.org/10.1108/10595421311296597 7. akerman ye.n., mixalchuk a.a., trifanov a.yu. typology of regions as a tool for coorganization of regional development // bulletin of the tomsk state university. un-a. economy. no. 331. 126–131-p. 8. shakabilovich s. s., bakhtiyorovich o. b. theoretical fundamentals of improving the investment environment attractive in reducing investment risks //texas journal of multidisciplinary studies. – 2022. – т. 6. – с. 67-72. 9. chinkulov k. r., ochilov b. b. formation of investment environment: scientific and methodological directions of territorial assessment //international journal of multicultural and multireligious understanding. – 2022. – т. 9. – №. 3. – с. 408-415. 10. prepared by the author based on information from the official website of the statistical agency under the president of the republic of uzbekistan www.stat.uz 11. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. 12. butaev j., radjabov u. conceptual foundations of improving the tax system problems and solutions //trans asian journal of marketing & management research. – 2021. – т. 10. – №. 4. – с. 91-98. 13. omonov s. institutional investors and robo-advisors in the capital market: specific features and foreign experience //international finance and accounting. – 2021. – т. 2021. – №. 3. – с. 26. 14. bakhtiyarovich o. b. prospects and priorities of foreign investment development in the national economy //e conference zone. – 2022. – с. 96-98. http://dx.doi.org/10.1108/10595421311296597 http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 48 www.americanjournal.org students' knowledge of subjects in the creditmodule system formulating evaluation criteria zarina nurlibayeva muhitdinovna mirzo ulugbek district secondary school no. 18, technology teacher a b s t r a c t k e y w o r d s this article provides information on assessment, control questions in the credit module system. credit-module system, assessment, control, interval, decree, decision, observer davlatimiz rahbari tomonidan 2019-yilning 8-oktyabrida “oʻzbekiston respublikasi oliy taʼlim tizimini 2030-yilgacha rivojlantirish konsepsiyasini tasdiqlash toʻgʻrisida”gi farmoni imzolandi. ushbu muhim dasturilamal hujjatda “respublikadagi kamida 10 ta oliy taʼlim muassasasini xalqaro eʼtirof etilgan tashkilotlar (quacquarelli symonds world university rankings, times nigher education yoki academic ranking of world universities) reytingining birinchi 1 000 ta oʻrindagi oliy taʼlim muassasalari roʻyxatiga kiritish va oliy taʼlim ­muassasalarida oʻquv jarayonini bosqichmabosqich kredit-modul tizimiga oʻtkazish” belgilab berildi. shuningdek, 2030-yilga qadar respublikadagi barcha oliy taʼlim muassasasi (otm)ning 85 foizi, jumladan, 2020/2021 oʻquv yilining oʻzida 33 ta oliy taʼlim dargohini kredit-modul tizimiga oʻtkazish koʻrsatib oʻtildi. o‘quvchilar bilimini nazorat qilish turlari o‘quvchilarning bilim saviyasi va o‘zlashtirish darajasining davlat ta’lim standartlariga muvofiqligini aniqlash uchun oliy ta'lim muassasalarida oraliq va yakuniy nazorat yoki faqat yakuniy nazorat o‘tkaziladi.modulning nazorat turlari va shakllari, nazoratlar soni hamda tegishli nazorat turi uchun maksimal va saralash ballari to‘g‘risidagi ma’lumotlar o‘quv dasturida belgilanadi.o‘quv dasturi ta’lim jarayonini boshqarishning axborot tizimiga (bundan buyon matnda elektron ta’lim platformasi deb yuritiladi) o‘quv semestri boshlanishidan oldin kiritiladi.nazorat turlarini o‘tkazish jadvallari har semestrning ikkinchi haftasidan kechiktirmay o‘quv-metodik bo‘lim tomonidan ishlab chiqiladi va direktorning o‘quv ishlari bo‘yicha birinchi o‘rinbosari tomonidan tasdiqlanadi.nazorat turlarini o‘tkazish jadvallari tasdiqlangandan so‘ng bir ish kuni ichida fakultet dekani tomonidan elektron ta’lim platformasiga joylashtirilishi hamda o‘quvchilar e’tiboriga yetkazilishi ta’minlanadi. oraliq nazorat semestr davomida modul o‘quv dasturining tegishli (modulning bir necha mavzularini o‘z ichiga olgan) bo‘limi tugaganidan keyin o‘quvchining o‘zlashtirgan bilim va amaliy ko‘nikmasi darajasini american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 49 www.americanjournal.org aniqlash va baholash usuli hisoblanadi.yakuniy nazorat muayyan modul bo‘yicha o‘quvchining nazariy bilim va amaliy ko‘nikmalarni o‘zlashtirganlik darajasini, ularda modullar bo‘yicha egallashi zarur bo‘lgan kompetensiyalar shakllanganligini aniqlaydi. nazorat turlari o‘quvchining o‘quv adabiyotlari, normativ-huquqiy hujjatlar bilan ishlash, protsessual hujjatlar loyihalarini tuzish bo‘yicha amaliy ko‘nikmalari, muammoli vaziyatlarni hal etish (casestudy), mantiqiy fikrlash, o‘z fikrlarini izchil va aniq bayon qilish qobiliyatini baholashga qaratilganligi bilan ahamiyatlidir. nazorat turlari bo‘yicha savollar va topshiriqlar modul rahbari hamda dars mashg‘ulotlarini olib boruvchi pedagog tomonidan ishlab chiqiladi.kafedra mudiri nazorat turlari bo‘yicha savollarning sifatli tayyorlanishi va har semestrning birinchi haftasida fakultet dekaniga taqdim qilinishini ta’minlaydi.fakultet dekani nazorat turlari bo‘yicha savollarni qabul qilgan kundan boshlab besh ish kuni ichida uning o‘quv dasturida belgilangan talablarga muvofiqligini tekshirgan holda o‘quvmetodik bo‘limga taqdim qiladi. nazorat turlari bo‘yicha savollar, qoida tariqasida, mantiqiy savollar va muammoli vaziyatlarni yoki faqat muammoli vaziyatni (case-study) o‘z ichiga oladi. shu o‘rinda nazorat savollariga to‘xtalib o‘tadigan bo‘lsak,ushbu savollar o‘quvchilarning o‘tgan o‘quv yillarida tayyorlangan yozma ishlardan foydalanish imkoniyatini istisno qilish uchun zaruratga ko‘ra yangilanishi,o‘quvchilarning o‘quv dasturi doirasida o‘zlashtirgan bilimlarini o‘zida ifoda etishi,shuningdek muammoli vaziyatlar bo‘yicha munozaraga kirishishga qaratilgan bo‘lishi lozim. savollar o‘z ichiga o‘quv dasturining tegishli bo‘limlarini to‘liq qamrab oladi. talabada huquqiy manbalar asosida o‘z nuqtai nazarini asoslash va protsessual hujjatlar loyihalarini tuzish ko‘nikmalarini shakllantiradi. nazorat savollari o‘quvchilarning modulni o‘zlashtirish darajasini, tahlil qilish ko‘nikmalarini, mustaqil fikrlash va kelajakdagi kasbiy faoliyatlarida mustaqil qarorlar qabul qilish qobiliyatlarini aniqlashga qaratilgan bo‘lishi lozim. nazorat turlari o‘quv rejada belgilangan har bir modul bo‘yicha, uning xususiyatidan kelib chiqqan holda, semestrda kamida bir marotaba, auditoriyada yozma shaklda, auditoriya rahbari va kuzatuvchisi nazorati ostida o‘tkaziladi.nazorat turlari, qoida tariqasida, 2 soat (120 daqiqa) mobaynida o‘tkaziladi.tegishli nazorat turining boshlanish va tugash vaqti auditoriya kuzatuvchisi tomonidan auditoriya doskasida aks ettirilishi zarur.nazorat turlarida ishtirok etadigan auditoriya rahbari va kuzatuvchilari tarkibi har bir nazorat turi o‘tkazilishidan uch ish kuni oldin fakultet dekani tavsiyasiga ko‘ra pedagog va o‘quv-yordamchi xodimlar orasidan yuridik texnikum direktorining buyrug‘i bilan tasdiqlanadi. fakultet dekani auditoriya rahbarlari va kuzatuvchilarning ro‘yxatini tasdiqlangan kundan boshlab bir ish kuni ichida yuridik ta‘lim muassasasining tarkibiy tuzilmalari e’tiboriga yetkazadi. kelmagan auditoriya rahbari va (yoki) kuzatuvchini almashtirish majburiyati fakultet dekani zimmasiga yuklatiladi.. nazorat turlarini olib borish jarayoni videoyozuvda qayd qilinadi. o‘quvchilar nazorat turlari o‘tkazilayotgan auditoriyaga faqat o‘quvchilik guvohnomasi yoki biometrik pasportini (identifikatsiya id-kartasini) ko‘rsatgan holda kiritiladi.. nazorat turlarini o‘tkazish vaqti boshlangandan so‘ng kelgan o‘quvchilar tegishli nazoratda ishtirok etishga qo‘yilmaydi. o‘quvchining har bir modul bo‘yicha bilim, malaka va ko‘nikmalarini baholash yevropa kredit transfer tizimiga (european credit transfer and accumulation system — ects) asosan amalga oshiriladi.o‘quvchining har bir modul bo‘yicha egallagan bilim, malaka va ko‘nikmalari, shuningdek o‘quv semestri mobaynidagi har bir modul bo‘yicha o‘zlashtirishi 100 ballik tizim asosida butun sonlar bilan baholanadi. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 50 www.americanjournal.org 100 ball nazorat turlari bo‘yicha quyidagicha taqsimlanadi: oraliq nazoratga modul bo‘yicha to‘planishi mumkin bo‘lgan maksimal ballning — 40 foiz (40 ball)gacha; yakuniy nazoratga modul bo‘yicha to‘planishi mumkin bo‘lgan maksimal ballning — 60 foiz (60 ball)gacha, oraliq nazorati belgilanmagan taqdirda 100 foiz (100 ball)gacha ajratiladi. baholashni shartli ravishda 2 qismga bo‘lamiz: dastlabki baholash va asosiy baholash. 1. dastlabki baholash. 1.1. ma’ruza mashg’uloti nazorati. 1.2. amaliy, tajriba mashg‘ulotlari nazorati. 1.3. mustaqil ta’lim nazorati. 1.4. ki, kl, hgi nazorati. izoh: 1. talaba nazorat uchun qo‘yilgan talablarning kamida 60 % ni bajarsa ijobiy baholanadi. masalan ma’ruza mashg’uloti nazorati savollariga kamida 60 % to‘g‘ri javob bergan bo‘lsa, lekin ki, kl, hgi larini 100 % bajarishi shart. 2. ki, kl, hgi larini bajarmagan talaba yakuniy nazorat topshirishga kiritilmaydi va qarzdor hisoblanadi. 3. dastlabki baholashda fandan talabaning olgan baholarini rasmiylashtirish uchun fakultet dekanatlarida dastlabki baholash qaydnomasi tashkil etiladi. unda barcha nazoratlar bo‘yicha baholar qo‘yiladi va o‘rtachasi aniqlanadi, o‘rtacha baho ijobiy bo‘lsa yakuniy nazoratga ruxsat beriladi. birta nazoratdan qoniqarsiz baho olganda ham o’rtacha baho hisoblanmaydi va talaba yakuniy nazoratga kiritilmaydi. 2. asosiy baholash. talaba fandan yakuniy nazorat topshiradi, bunda ham kamida 60 % to‘g‘ri javob bergan bo‘lsa ijobiy baholanadi. masalan 30 ta test savoliga javob berganda: 18 tadan 21 tagacha to‘g‘ri javob (60 dan 72 % gacha) – 3 baho; 22 tadan 25 tagacha to‘g‘ri javob (73 dan 85 % gacha) – 4 baho; 26 tadan 30 tagacha to‘g‘ri javob (86 dan 100 % gacha) –5 baho. xulosa qilib aytganda,kreditmodul tizimi o‘zining bir qator afzalliklari bilan boshqa tizimlardan ustun turadi. ushbu tizim talabalarda ko‘proq o‘z ustida ishlash va o‘qish imkoniyatini beradi. foydalanilgan adabiyotlar ro‘yxati: 1.o'zbekiston respublikasi prezidentining 2019 yil 8 oktabrdagi "o'zbekiston respublikasi oliy ta'lim tizimini 2030-yilgacha rivojlantirish konsepsiyasini tasdiqlash to'g'risida"gi pf-5847-son farmoni. 2. usmonov b.sh., xabibullaev r.a. oliy o'quv yurtlarida o'quv jarayonini kredit-modul tizimida tashkil qilish. o'quv qo'llanma.toshkent, tkti, 2020. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 51 www.americanjournal.org 3.o‘zbekiston respublikasi prezidentining 2020-yil 29-apreldagi pf-5987-son “o‘zbekiston respublikasida yuridik ta’lim va fanni tubdan takomillashtirish bo‘yicha qo‘shimcha chora-tadbirlar to‘g‘risida”gi farmoni. 4 o‘zbekiston respublikasi prezidentining 2018-yil 13-apreldagi pq-3666-son “o‘zbekiston respublikasi adliya vazirligi faoliyatini yanada takomillashtirishga doir tashkiliy chora-tadbirlar to‘g‘risida”gi qarori. 5. vazirlar mahkamasining 2018-yil 23-oktabrdagi 858-son “o‘zbekiston respublikasi adliya vazirligining yuridik texnikumlarida o‘qishni tashkil qilish choralari to‘g‘risida”gi va 2021-yil 10iyundagi 359-son “o‘zbekiston respublikasi adliya vazirligi tizimidagi ta’lim muassasalarida kreditmodul tizimini joriy etish chora-tadbirlari to‘g‘risida”qarorlari. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 101 www.americanjournal.org improving the management system of recycled products sadinov aziz ziyadullayevich tashkent state university of economics, 3 st year doctoral student https://orcid.org/0000-0003-0387-7345 azizsadinov1909@gmail.com a b s t r a c t k e y w o r d s this article discusses the methods of creating necessary products from waste products and the development of innovative projects, as well as the practical application of a new mechanism for improving the automated management system, the effective illumination and involvement of digital technologies in the economic transformation of waste products into new products, and the activities of facilities based on digital technologies in the areas of waste processing processes by a technical technologist efficient organization, waste processing in the regions is to improve the work efficiency of the enterprises, as well as to support the interaction with external information systems and production processes through fully functional technologies development of material and technical base of and software interfaces of the company's resources based on digital technologies in order to separate waste products and prepare them for processing in the regions. waste, innovation, technology. introduction: it is advisable to develop information and communication technologies based on the principles of identifying factors that encourage and hinder the introduction of new technologies in the waste processing plant. the long life cycle of innovations leads to economic inequality in the value of costs incurred and the results obtained at different times. this can be solved by the method of quoted value, or discounting, in other words, by bringing costs and results over a period of time [1],[2]. the basic idea of discounting is that it is easier for an enterprise to get money today than tomorrow, because they can be invested in innovations, and they can make a profit tomorrow. in addition, postponing the withdrawal to the next day is risky: under unfavorable conditions, their income may be less than expected or not at all. the creation of a whole system of scientific, production and trade will be based on objective laws, as well as determined by scientific and technological progress and the market needs of the enterprise [3]. there are the following types of innovative research projects: initiative research projects, projects for the development of material and technical base of scientific research, projects for the creation of american journal of business management, economics and banking volume 13 june, 2023 p a g e | 102 www.americanjournal.org information systems (it) and databases (db), publishing projects, projects for the implementation of expeditions, etc. the management of research and development takes place under changing conditions. in each case, an unforeseen technical problem may arise, which may result in a delay or suspension of work on the project. the needs and requirements of each customer may change, and the viability of the project will need to be re-evaluated. the choice of project depends on the search for alternative solutions. creation of a new mechanism for managing the process of scientific, technical and experimental design work (stedw) and based on information and communication technologies. shown in figure 1. figure 1. stedw process management mechanism. the portfolio of stedw may consist of different projects. however, each project requires limited resources due to its characteristics (complexity, capacity, etc.). the number of projects in a portfolio over a period of time depends on the size of the projects, which is measured by the total amount of resources required to develop and implement a single project. the number of projects in the portfolio (n) is derived from the following ratio: n stedw budget for the period / average cost per project. a portfolio consisting mainly of large projects has a higher risk than a portfolio whose resources are distributed among smaller projects. the advantage of small projects is that they are easier to adapt to each other in terms of available resources. a large project, on the other hand, requires a large amount of limited resources. when considering the possibility of including a project in the portfolio, it is necessary to take into account the consequences of the quality of management and redistribution of costs to projects [4]. let us evaluate two portfolios, each consisting of two projects (table 1). both portfolios are small. table 1. evaluating the effectiveness of portfolios a portfolio b portfolio projects expense, currency (zа) profit currency (pа) profitability 2 / 1 expense, currency (zа) profit currency (pа) profitability 5 / 4 1 2 3 4 5 6 1 22 000 41 800 1,9 34 000 59 500 1,75 2 18 000 32 400 1,8 30 000 57 000 1,9 total servicing after sales consumer portfolio planning stedw organize product presenting to market consumer american journal of business management, economics and banking volume 13 june, 2023 p a g e | 103 www.americanjournal.org a portfolio b portfolio projects expense, currency (zа) profit currency (pа) profitability 2 / 1 expense, currency (zа) profit currency (pа) profitability 5 / 4 1 2 3 4 5 6 assessment of portfolio 40 000 72 400 1,86 64 000 116 500 1,82 the first project in portfolio a is 8.6% (1.9 / 1.75 = 1.086) more profitable than the project in portfolio b, but the second project has a higher profitability in portfolio b (1.8 / 1.9 = 0.947), i.e. the profitability of the second project is 9.5% lower. the total value of portfolios is given on the basis of average profitability. we define the profitability of portfolios a and b as pra and prb. as can be seen from table 1, the profitability of individual projects is determined as follows: pra = pа / zа; prb = prb / zb. (1) the overall profitability of the portfolios   = ‚ п а а r a ;   = ‚ п з з r з (2) here: r a and r з average return on a and b portfolios. on the basis of profitability indicators, the priority coefficient can be calculated. r r к з a п = (3) here: cp – priority coefficient. in our example, the priority coefficient is: %2,2022,1 82,1 86,1 orc == however, each project has an individual profitability (pi) and a certain share () in portfolio formation expenses. this can be presented in the form of a system of priorities for the average or aggregate priority coefficient (), profitability and expenses structure. profitability priority coefficient:   = dr dr к ‚aiзi ‚aiаi т * * . (4) priority coefficient on expenses structure:   = dr dr к ‚зiзi ‚aiзi d‚ * * . (5) so that:   = dr dr к ‚зiзi ‚aiаi п * * , (6) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 104 www.americanjournal.org or       == dr dr dr dr dr dr к ‚зiзi ‚aiзi ‚аiзi ‚aiаi ‚зiзi ‚aiаi п * * * * * * * . (7) the methodology for calculating priority coefficients is given in table 2. in this example, the profitability priority coefficient (   = dr dr к ‚зззi ‚aiаi п * * ) 1,22 equal.. it is equal to the size of the average priority coefficient, because the share of projects in the portfolio in terms of expenses structure is almost the same and there is no priority (cp = 1). if the manager focuses on the projects included in portfolio a, the additional income of portfolio a is [(+0.04) * 40,000] = 1600 monetary units, taking into account that the profitability of portfolio a is 0.04 points higher. table 2. calculation of priority coefficients. to create an order portfolios imply working with potential customers of stedw results. innovative projects offered to investors will be compared and analyzed using a single system of indicators. comparison of submitted projects is carried out taking into account the following: the volume of work carried out using new methods (technology, equipment, etc.); quality indicators of innovations; time factor; price, tariff level, condition of salary payment. the long life cycle of innovations leads to economic inequality in the cost of work done at different times and the value of the results obtained. this can be solved by the method of quoted value, or discounting, in other words, by bringing costs and results over a period of time. such a time interval is, for example, the initial year of innovation [5]. the main point of discounting is that the present value of any amount expected to be received in the future is relatively small, it is easier for an enterprise to get money today rather than tomorrow because they are invested in innovations, and can generate some income tomorrow. in addition, postponing the withdrawal to the next day is risky: under unfavorable conditions, their income may be less than expected or not at all. the discount rate is always less than 1, otherwise today's money would be worth less than tomorrow's money [6]. for example, if today we are investing $ 1 billion in innovation with the goal of earning 10%. after 1 year, the value of our investments will reach 1.1 billion soums. this is the future value of our investment, and its current value is 1.0 billion soums. soums. projects а portfolio b portfolio rbi x dzai rаi d ‚ai rai x d ‚ai i rаi d ‚ai rbi x dzbi 1 1,9 0,55 1,045 1,75 0,53 0,927 0,962 2 1,8 0,45 0,81 1,90 0,47 0,823 0,855 assessing porfolio 86,1=r a 1,00 86,1=r a 86,1=r a 1,00 86,1=r a 1,82 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 105 www.americanjournal.org discount coefficients can be calculated using a complex interest formula: )1( i t p t += (8) here: i is the interest rate expressed as a decimal fraction (discount rate); tp – the year in which the expenses and results are presented (accounting year); t – the year in which expenses and results are shown. if the year of commencement of innovations is taken as the accounting year, then tp = 0 and so on )1( 1 i tt + = (9) in the case of a positive interest rate on capital, the discount rate i is always less than 1. for example, 20 billion to be paid in 4 years. it is necessary to determine the modern value of the soum. during this period, a compound interest rate of 8% per annum was added to the initial amount. in this case, the modern value is equal to: 7,147350,0*20*20 )08,01( 4 ==+ − . the magnitude of the discounted interest rate and the present value are inversely related, meaning that the higher the interest rate, the smaller the present value. the smaller the interest rate and the shorter the time period (t), the higher the discount rate for future earnings [7]. thus, the net present value of the project is determined using discounting. let's look at an example of a project selection mechanism. the initial investment in the project is $ 480 million. som the annual cash flow for 3 years is 160 crore. som the interest rate is 10% (i). in this example, the discount coefficients are: for the first year – 1 1 01 0 909 1 ( , ) , + = ; for the second year – 1 1 01 0 826 2 ( , ) , + = ; (10) for the third year – 1 1 01 0 751 3 ( , ) , + = so, during the years of the project implementation, the net present value is: (160 * 0.909) + (160 * 0.826) + (160 * 0.751) = 398 mln. soum. in order to decide whether it is appropriate to invest in a project, it is necessary to find the difference between the net present value and the initial amount of investment. the project we are considering is not profitable, because the income is smaller than the initial investment: (398 480) = -82 mln. som net present value is also called “net present value” (w). it should be noted that there are standard tables of discount multipliers to facilitate the discounting process and project selection. the following is a part of the table of discount multipliers for practical developments (table 3). if there is inflation, there will be a difference between nominal and real interest rates. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 106 www.americanjournal.org table 3. years 1% 10% 15% 20% 25% 30% 35% 40% 1 0,990 0,909 0,870 0,833 0,800 0,769 0,741 0,714 2 0,980 0,826 0,756 0,694 0,640 0,592 0,549 0,510 3 0,971 0,751 0,658 0,579 0,512 0,455 0,406 0,364 4 0,961 0,683 0,552 0,482 0,410 0,350 0,301 0,260 5 0,951 0,621 0,497 0,402 0,328 0,269 0,223 0,186 6 0,942 0,564 0,432 0,335 0,262 0,207 0,165 0,133 7 0,933 0,513 0,376 0,279 0,210 0,159 0,122 0,095 8 0,923 0,467 0,327 0,233 0,168 0,123 0,091 0,068 9 0,914 0,424 0,284 0,194 0,134 0,094 0,067 0,048 10 0,905 0,386 0,247 0,162 0,107 0,073 0,050 0,035 13 0,879 0,290 0,163 0,093 0,055 0,033 0,020 0,013 for example, the nominal annual rate is 9%, the expected inflation rate is 5% per annum, so the real rate is 4%. payback period (pp) for the selection of innovative projects in addition to net present income; coverage period (sp) internal rate of return (ir); indicators such as profitability (p) are also used [8]. figure 2 shows the performance indicators that need to be considered for an innovative project. calculating the efficiency coefficient according to the following expressions, the innovative project is common to all efficiency indicators: е э з = (correct indicator); е з э = (reverse indicator); (11) here: e – the effect of project implementation (results); z – project implementation expenses. figure 2. figure 2. the effectiveness of an innovative project indicators. economic the effectiveness of the project is calculated in terms of the entire national economy efficiency budget takes into account the impact of the project on budget expenditures (revenues) commerce takes into account the financial results for project participants american journal of business management, economics and banking volume 13 june, 2023 p a g e | 107 www.americanjournal.org the minimum expense for their implementation can serve as a criterion for the selection of projects. when choosing innovative projects, it is important to pay attention to ways to reduce risk. when more than one option is available, the most expense-effective option is chosen based on the minimum expense. zi = si + ен+i = min, here: zi is presented the expenses of each option; si – production expenses for this option (original price); ен – capital investment efficiency criteria; ki – investments in this option. in a planned economy, yen's criteria was set in a centralized manner. in a market economy, each enterprise sets this standard at the level of interest rate i, or at the level of profitability on investment pn. based on this, the costs can be described as follows: zi = si + i * ki = min or (12) zi = si + rн * кi = min. the payback period for additional investment in innovation, the additional investment costs incurred for the more expensive option of innovation, is the payback period due to the economic results achieved as a result of the innovation. to select an option, the calculated value of the payback period тr is compared with its normative magnitude тn = 1/е. it is advisable to make additional investments in innovations, provided that the payback period is not higher than the normative value. if тr<тn, the most efficient option is selected [7]. the magnitude of the inverse of the payback period is the coefficient of efficiency of additional investment in innovations or the coefficient of comparative efficiency – er: er = k c   . er the calculated value of the efficiency ratio is compared with the normative size of еn , which corresponds to the norm of capital return that satisfies the investor. if er >еn it is also effective in investing in innovations and, consequently, in high-capacity options. using the cost method, we select the most efficient option for the proposed new projects according to the following formula: s + еn ki, here: s annual production costs of the product; к – investments; еn – the coefficient of economic efficiency is equal to 0.1. 1 variant – (13600 * 700) + 0,1 * 22500 = 11770 mln. soum. 2 variant – (14700 * 1100) + 0,1 * 27600 = 18930 mln. soum. 3 variant – (13700 * 2500) + 0,1 * 19700 = 36220 mln. soum. conclusion: the most efficient option of the proposed projects is option 1st variant the lowest expenses presented. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 108 www.americanjournal.org table 4. information needed to select innovative technologies indicators variants 1 2 3 investments, mln. soum. 22500 27600 19700 production costs for one product are one thousand soum. 13600 14700 13700 annual production capacity, thousand units 700 1100 2500 particular attention is paid to the description of the expected results and the assessment of the scientific potential of the executors. the form in which they are presented should provide for the examination of the results. completion of project work is formalized by a termination act (interim, annual stage, etc.). the submitted projects will be subjected to a multi-stage independent examination, which will result in a decision on the amount of funding for the project. the analysis of this formula requires that the factors of feedback between its various elements, as well as the duration of the fr –o cycle, which can last more than 10 years, be ignored. however, each of the phases shown (fr -аt; l-q) is sufficiently independent. fr (theoretical research) serves as the initial stage of the innovation process, and this is related to the concept of scientific activity. of course, each individual element of the cycle ( fr, ат, i, l, q, o and si) is filled with fr -related scientific activity. from fr till si it is desirable that the amount of new information and information decreases. research activities are often replaced by skills, experience, and standard methods. when considering fr in terms of the end product, only research activities aimed at obtaining and processing new, original, validated data and information relevant to the problem area should be distinguished [9]. theoretical (fr) research is not directly related to solving specific practical problems. however, it is the foundation of the innovation process. however, the need for theoretical research may also be highlighted by a synthesis of practical needs and initial knowledge of the subject. fundamental research usually finds its proof in applied research, but it doesn’t happen all at once. development can be done as follows (figure 3): figure 3. (13). figure 3. the development of fr only some of the fundamental research turns to ат – i – l and so on. approximately 90 percent of fundamental studies have a negative outcome, and not all of the remaining 10 percent have a positive outcome. the goal of fundamental research is to understand and develop the process. applied research (ar) has a completely different direction. it is the "packing of knowledge", the transfer of new products, fr 1 fr fr 3 fr 4 < ....... fr 5 fr 2 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 109 www.americanjournal.org technological schemes, etc. as a result of the development, new machine and equipment structures are created, which gradually move to the design (p), construction (c), development (d) and industrial production (ip) phases. (m s) phases are related to the commercial implementation of the results of the innovation process.the following are descriptive for innovation management. figure 4. (14) figure 4. innovative management structure innovation management is a relatively new concept for the uzbek scientific community and business community. right now, uzbekistan is in dire need of innovation. in this context, it is advisable to encourage all business entities, from government agencies to individual entrepreneurs, to engage in innovative activities. general conclusions 1. in order to find solutions to existing problems in the processing of waste products in digital technologies and the operation of the production system, it is necessary to carry out fundamental researches based on the principles of reprocessing of the composition of its economic and technicaltechnological elements, as well as optimization through the improvement of development. there are a number of fundamental and applied science areas with integrative and adaptation characteristics of waste, and one of the most adapted scientific approaches to the characteristics and conditions of production and management and many other types of human activity is its principles. 2. in processing and application, it can increase the efficiency of enterprises, their competitiveness, and lay the foundation for creating a foundation of success. to do this, it is necessary to develop an enterprise using digital technologies, designed to support the corporate strategy. references 1. elnikov v. cryptography from papyrus to computer.m: abf,1997.334-336s. 2. zubanov f. windowsnt-choice"pro" .m:publishing department "russian redaxia " llp " chanel trading ltd" .1996.146-149s. 3. barichev s.cryptography without secrets. m: "dialog-mephi",1995.456-461s. 4. bobojonov a.b. methodological aspects of business development of information products and services in uzbekistan. tsu.t: 2018.231-235s. 5. odilov sh.g . mechanisms for improving the company's logistics processes on the basis of information and communication technologies. tdiu. t: 2019.112-115s. 6. kenjabaev a.t. problems of formation of the national system of informatization in business activity. tashkent: tsu, 2005. 37-41s. 1 planning goal setting and strategy selection 4 management realization 2 organization and defining conditions american journal of business management, economics and banking volume 13 june, 2023 p a g e | 110 www.americanjournal.org 7. yusupov as, the system of state support for exporters in the context of economic liberalization., t: 20058. alla vladimirovna medvedeva. electronic commerce in entrepreneurial activity, theme. moscow: 2004. 543-547s. 8. samoilov alexey mikhailovich. electronic commerce in the modern business system. moscow: 2004. 164 pp. rsl od, 61 04-8 / 3514s. 9. melnik ivan olegovich. development of methods for constructing integrated information systems for electronic commerce. moscow: 2007 specialty of the higher attestation commission of the russian federation. 498-503s. 10. chechenov muslim khuseynovich., development of electronic commerce in russia moscow 2002 code of the higher attestation commission of the russian federation.187-191s. 11. stefan greil chrestian schwarz stefan stein., “fairness and the arm’s length principle in a digital economy ” forschungsberichte des fachbereichs wirtschaftswissenschaften der hochschule dusseldorf ausgabe 42 (2018)issn:2365-3361 posted:26 jul 2018. 12. m.s.sandeep.,m.n.ravishankar., “socioncultural transitions and developmental impacts in the diital economy of impact sourcing”information systems journal may 2017.234-237s. 13. schwab k. world economic forum:the global commpetitiveness report.geneva:world economic forum,2013.78-82s. 14. gasanov t.a., gasanov g.a. digital economy as a new direction of economic theories "journal of regional problems of economic transformation 2017.36-39s. 15. bystrova natalya., vasilyevna kaksimova. electronic commerce and prospects for its development innovative economy magazine: prospects for development and improvement 2018-99-103s. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 34 www.americanjournal.org the importance of training and scientific qualification of the external auditor when auditing fair value estimates and their impact on increasing the effectiveness of professional skepticism an analytical study for iraqi auditing firms asst. prof. dr. iman shakir mohammed iraqi university/faculty of administration and economics iman.alridha@aliraqia.edu.iq mohammed ali hussein iraqi university/faculty of administration and economics mhmdlyalbwdt@gmail.com a b s t r a c t k e y w o r d s abstract the study aimed to demonstrate the importance of training and scientific qualification and their impact on enhancing the efficiency of the external auditor in auditing fair value estimates and its reflection on the development of professional doubts for the auditor. about the council of the auditing and oversight profession in iraq for the year 2022. among the results of the research, there is a statistical significance for the external auditors in iraq in having training and technical qualification and having a sufficient understanding of the activity of the economic unit in order to realize their responsibilities in identifying and evaluating the risks of material errors when auditing and exercising doubt. more effectively in order to achieve the quality of the information in the auditor's report. scientific training and qualification, fair value estimates, the effectiveness of professional skepticism introduction to the accounting profession remained in a continuous development until the professional organizations of the audit that aimed at the sponsorship of the interests of their members and the advancement of professional performance of the audit and study of the problems that face the auditors in the performance of their profession and the status of recommendations in the various states of the if the criteria focus on quality auditing and identifies the basic principles that guide the auditor in the performance of his work, in order to ensure that the level of his professional performance in mailto:mhmdlyalbwdt@gmail.com american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 35 www.americanjournal.org accordance with the levels of performance that receive general acceptance among the members of the profession. the official gazette of the official gazette shareholders and all those dealing with the economic unit. this forum is a neutral opinion. if the financial statements fairly express the financial position of the unit and the effect of its business in accordance with the principles and the acquaintances that are acquainted with the auditor, in need of the functioning of the process of quality and efficiency so that he can show the opinion of the artist in the financial lists after a fair and sincere and thus achieve the target of the verification, so that the external auditor can be independent, but it is the same as the one who is not. hadith in the definition that has the interest of the scientific bodies and societies that are concerned with the field of verification, so that the strategy of training and scientific alertness is the most prominent means through which the auditor is able to achieve quality in the definition and the subject of the subject, so that the question is to be able to do so that the effect of the question is to be able to do so. for auditors when auditing fair value estimates and their reflection on the effectiveness of professional skepticism. first / reviewing the literature and previous studies. a study focused ( jayanthi kumarasiri1 and richard fisher / 2011) on identifying and examining issues and challenges facing auditors, a survey of 156 practicing fva auditors in sri lanka. specific with its implementation in developing countries. these issues included: lack of technical knowledge (siriwardane et al ,2014:4) , prevalence of inactive markets in developing countries, difficulties associated with differences in the techniques used to ascertain fair values across different industries, general complexities in ascertaining fair values, incorporation of events and conditions into valuations and forward-looking forecasts, the basic means of disappearance from these fear either the study (oyewo babajide / 2019) included studies after the implementation of the measurement of fair value the international standard for the preparation of financial reports number (13) in nigeria, and it concluded that the most intense determination of the valuable values is not it seems that the size of these challenges in different industry sectors is similar in the characteristics of the auditing firm that affect the perception of the challenges, but there is agreement that the manipulation of the values of assets and liabilities without a market price during estimation, and taking advantage of the lack of information market for assets / liabilities on the part of managers to manipulate financial statements, and the low level of training and scientific qualification of auditors are the most important challenges facing auditing fair value estimates. the second / the role of training and scientific qualification in developing the perception of the external auditor 1 the importance of training and scientific qualification of the external auditor. training from a group of activities is related to new programs that aim to cheer the workers in the only ones that make them able to bear the responsibilities and alms, (herliansyah & ilyas :2006: 25) as well as that the value of a high -economic head is qualified for the human money that grows when the learning and training of workers are achieved in a continuous manner: (bernardin) describes training as an 'attempt to improve the quality of workers' performance in the jobs they are assigned to perform, which leads as a result to realizing the knowledge and skills of workers at the economic unit and improving their behavior' (bernardin: 2003: 164). as well as the efficiency that leads to the result of the improvement of performance ( rue and byrs:2004:190 ) (the training was also described' that it is a systematic development process that workers in the economic only obtained in the thoughts and the decision -making and the definition of problems and the extent the maturity of its solutions'( bai american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 36 www.americanjournal.org and yang :2009:1 ) (therefore, scientific training and qualification lead to the development of cognitive maturity and the completeness and clarity of perceptions, as maturity in knowledge and thinking is the goal of the human mind in terms of the completion of those perceptions in order for them to be aware of variables and accounting systems and auditing accounts (pany 2004: 13). & whittington, (rahayu) indicated that training has a greater impact on improving the auditor's experience than that obtained from traditional programs and has a positive effect on the auditor's ability to detect errors, fraud, or management manipulation (rahayu 2010: 139). the training discusses in depth the auditor's techniques in spotting irregularities through different audit manuals so the auditor must undergo adequate training and different kinds of expectations can result from that training which auditors increasingly follow. (nasution, et al:2012:31) audit results explained in 2-the role of the external auditor in auditing fair value estimates. the role of the auditor is based on checking the estimates of the management of the economic unit by examining the soundness of the internal controls of the unit in its planning stage ( krishnamoorthy:2000:500 ), and the better the controls, the less the need for implementation audit procedures, which ultimately leads to a reduction in the external audit budget (callao et al :2007:133 ),in fact, the globalization of banking operations and financial markets has led to an increase in the importance of the external auditor’s opinion, in addition to the role of internal audit in evaluating reliable information and improving sound governance of economic units ( ester,et,al:2012:729 ), where the management is confident that it is presented by the auditor. by making unbiased estimates in the economic unit in achieving the values of governance practice and strong control to assist the objectives of the financial reporting standard (ifrs9), as the unit needs to inform the investors of the plans related to the evaluations to face the risks of material misstatement, as a result of this, the auditor strengthens the assurances about the credibility of the financial reports ( deloitte:2020:9). 3the importance of professional doubt in the auditing profession. doubt is the best way to reduce lawsuits filed against audit firms and auditors through the auditor's practice of suspicion, which is the most effective tool to reduce the filing of such lawsuits (ciolek: 2019:10). it is one of the basic principles which the auditor must enjoy when performing auditing tasks and acquires its importance as it aims to reduce audit risks and diagnose errors and material violations committed by management and in a way that enhances the independence and efficiency of the auditor in examining and discovering those errors ( rahmida:2020:7). the third / testing the hypotheses of the research the research is based on the following hypothesis: the absence of a correlation and a significant effect between the two axes of the research 'the importance of training and scientific qualification of the auditor in auditing fair value estimates and between the effectiveness of professional skepticism'. the fourth / descriptive statistics of the research questionnaire data: in order to identify the relationship between the importance of training and educational qualification of the external auditor when auditing fair value estimates and the effectiveness of professional skepticism from the point of view of the auditors of the research sample, the necessary information was collected to design a form for a sample of inspection and inspection offices the first category american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 37 www.americanjournal.org included in the 2022 bulletin issued by the profession council for the control and auditing of accounts in iraq. the questionnaire was based on a likert scale consisting of five points and weights for the type of answer in each item ((strongly agree = 5, agree = 4, neutral = 3, disagree = 2, completely disagree = 1) for sample answers, and the weighted arithmetic mean is calculated. weighted for each paragraph according to the five-point likert scale of the research to determine the degree of approval by comparing it with the degrees of approval established according to the calculation of the length of the period (80.0) through ) 𝟒 𝟓 ) shown in the following table: table (1) shows the periods of weighted average agreement of response trends degree of agreement (direction of answers) weighted average periods i don't agree at all i agree not neutral agree strongly agree source / prepared by the researchers when conducting the census for easy statistical descriptive handling and the rest of the statistical analysis of the form, the paragraphs of the first axis are coded with the symbol x, while the paragraphs of the second axis are coded with the symbol y. table (2) coding the paragraphs of the first axis, the importance of training and qualification for the external auditor when auditing fair value estimates (explanatory variable) phrases (paragraphs) paragraph symbol the availability of understanding of the activity of the economic unit, training and scientific qualification reflects positively on the quality of the professional judgments issued by the external auditor. 𝐗𝟏 the inputs to the fair value estimates are based on personal judgment, which makes it difficult for the external auditor to audit them. 𝐗𝟐 the potential bias by management is one of the most difficult challenges to detect because: some accounting estimates involve uncertainties that lead to substantial risks. 𝐗𝟑 the auditor must make sure that the evaluation method is commensurate with the nature of the item to be evaluated and is compatible with the framework of financial disclosure and the nature of the activity of the economic unit. 𝐗𝟒 auditors face difficulties in obtaining appropriate and sufficient audit evidence when: 1there is no active market price for the asset or liability. 2using inappropriate valuation methods to evaluate fair value estimates. 𝐗𝟓 the auditor is interested in verifying the data sources on which the fair value estimates are based through mathematical recalculation and verifying information sources to ensure internal consistency. 𝐗𝟔 the auditor should verify that the fair value estimation methods are appropriate and that they are applied on a regular basis . 𝐗𝟕 source: prepared by the two researchers american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 38 www.americanjournal.org table (3) coding the paragraphs of the second axis, the effectiveness of professional skepticism (response variable) phrases (paragraphs) paragrap h symbol phrases (paragraphs) paragra ph symbol the characteristic of the questioning mentality does not adhere to international auditing standards only in thinking, but also includes everything related to understanding and analyzing the facts aim to examine evidence. 𝐘𝟏 the auditor is required to take into account the psychological and personal dimensions when dealing with the customer. 𝐘𝟕 the auditor pays attention to all available information before issuing a professional judgment. 𝐘𝟐 the auditor must match the content of the verbal and nonverbal information in order to reach an understanding of the customer’s personality. 𝐘𝟖 the search for knowledge feature enhances giving clear perceptions of the factors that help in evaluating the evidence according to a realistic and accurate perspective. 𝐘𝟑 the auditor does not allow any external influences to change his skeptical attitude, as he controls himself and his feelings. 𝐘𝟗 the auditor is always ready to reveal knowledge of the mind and has a new mentality, as he practices open questioning. 𝐘𝟒 the tendency of professional skepticism is based on the fact that the auditor possesses selfconfidence and self-respect, which enables him not to be inclined to temptations that limit his his practices of professional skepticism. 𝐘𝟏𝟎 the availability of evidence indicating the integrity and honesty of management does not exempt the auditor from practicing professional skepticism. 𝐘𝟓 the availability of evidence indicating the integrity and honesty of management does not exempt the auditor from practicing professional skepticism. 𝐘𝟏𝟏 the critical evaluation of evidence requires the auditor not to accept any unconvincing audit evidence for use. 𝐘𝟔 the critical evaluation of evidence requires the auditor not to accept any unconvincing audit evidence for use. 𝐘𝟏𝟐 source: prepared by the two researchers in order to find out the answers of the sample trends for each paragraph of the questionnaire form, ratios, frequencies, arithmetic means, and standard deviations were used, as well as results. the results contained in tables no. (2) and (3) included the answers of the research sample to the questionnaire items as follows: american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 39 www.americanjournal.org table (4) frequencies of the sample’s answers, the arithmetic mean, standard deviations, and the degree of agreement with the paragraphs of the first axis (the role of training and scientific qualification of the external auditor when auditing fair value estimates) .source: the preparation of the two researchers based on the results of the program spss. and from table (4) we note that most of the answers of the research sample were distributed between two options (strongly agree, agree) in large numbers and percentages that favored the option of agreeing, and in the second place strongly agreed and compared with the rest of the other answer options. the paragraphs of the axis got the first (the importance of training and scientific qualification of the external auditor when auditing fair value estimates) all on an arithmetic mean, depending on the sample size (70) larger r from (4) most of them except for paragraphs x2 and x5, and the arithmetic mean of the first axis was (4.28 ) with a standard deviation of ( 0.36). this indicates the agreement of the research sample and their agreement on the importance of the paragraphs of this axis, and it is clear from the table ( 4) the third main factor of the first axis (the explanatory variable (independent)) (the importance of xr training and the scientific qualification of the external auditor when auditing the fair value estimates (one paragraph (r1) guarantees the quality of the availability of understanding of the activity of the economic unit, training and experience the professional judgments issued by the external auditor (and have the most important) are reflected positively the relative relative value is ( 0.941 ) and it can be called a factor (the level of accumulated experience of the external auditor to issue professional judgments in the audit process. while the results of the descriptive statistics for the second axis (the effectiveness of professional skepticism) were as follows: degree of approval standar d deviati on arithmet ic mean the answers paragrap h symbol n do not agree agree at all not agree neutral agree strongly agree 1 2 3 4 5 % s % s % s % s % s strongly agree 0.49 4.60 0 0 0 0 0 0 40.0 28 60. 0 42 x1 1 agree 0.78 4.03 0 0 2.9 2 20. 0 14 48.6 34 28. 6 20 x2 2 strongly agree 0.65 4.26 0 0 0 0 11. 4 8 51.4 36 37. 1 26 x3 3 strongly agree 0.64 4.36 0 0 0 0 8.6 6 47.1 33 44. 3 31 x4 4 agree 0.75 4.14 0 0 0 0 21. 4 15 42.9 30 35. 7 25 x5 5 strongly agree 0.53 4.33 0 0 0 0 2.9 2 61.4 43 35. 7 25 x6 6 strongly agree 0.64 4.27 0 0 0 0 10. 0 7 52.9 37 37. 1 26 x7 7 strongly agree 0.36 4.28 the arithmetic mean and standard deviation of the first axis american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 40 www.americanjournal.org table (5) frequencies of the sample’s answers, the arithmetic mean, standard deviations, and the degree of agreement for the paragraphs of the second axis (the effectiveness of professional skepticism) . .source: the preparation of the two researchers based on the results of the program spss. it is clear from table (5) that the first main factor of the second axis (the effectiveness of professional skepticism) included two paragraphs (y3, y4 (paragraph y2) showed that the auditor is always willing to discover new knowledge of the mind and has an open mind) the largest relative importance with a value of (0.790) (while he is practicing interrogation, the second paragraph y3) enhances the search for knowledge feature by giving clear perceptions of the factors that yr help in evaluating the evidence according to a realistic and accurate perspective (with a value of ( 0.777 ), and paragraph 7r indicated (the auditor is required to take into account the psychological dimensions and personality when dealing with the customer. (the greatest relative importance (yr) is that the auditor’s competence, knowledge, and technical qualifications enable him with a value of (0.752) (while the second paragraph 11r was avoiding any behavior of the customer (j) with a value of (0.609), (it is believed that it affects the professional doubt that he exercises checker the third paragraph y6 (the critical evaluation of the evidence obliges the auditor not to accept any audit evidence that is not convincing for use). fifth / based on the results shown in the previous tables, the following is clear: athere is a significant correlation between (the importance of training and educational qualification of the external auditor when auditing fair value estimates) x and (the effectiveness of professional skepticism) y. degree of approval standar d deviati on arithmet ic mean the answers paragrap h symbol n do not agree agree at all not agree neutral agree strongly agree 1 2 3 4 5 % s % s % s % s % s agree 0.61 4.16 0 0 0 0 11.4 8 61.4 43 27.1 19 x1 1 strongly agree 0.56 4.21 0 0 0 0 7.1 5 64.3 45 28.6 20 x2 2 agree 0.64 4.14 0 0 0 0 14.3 10 57.1 40 28.6 20 x3 3 agree 0.83 4.06 1.4 1 2.9 2 14.3 10 51.4 36 30.0 21 x4 4 strongly agree 1.06 4.26 5.7 4 1.4 1 7.1 5 32.9 23 52.9 37 x5 5 agree 0.54 4.13 0 0 0 0 8.6 6 70.0 49 21.4 15 x6 6 agree 1.03 3.74 4.3 3 8.6 6 17.1 12 48.6 34 21.4 15 x7 7 agree 0.79 3.99 0 0 4.3 3 18.6 13 51.4 36 25.7 18 y8 8 strongly agree 0.70 4.29 0 0 0 0 14.3 10 42.9 30 42.9 30 y9 9 strongly agree 0.62 4.40 0 0 0 0 7.1 5 45.7 32 47.1 33 y10 10 strongly agree 0.58 4.31 0 0 0 0 5.7 4 57.1 40 37.1 26 y11 11 strongly agree 0.65 4.41 0 0 1.4 1 4.3 3 45.7 32 48.6 34 y12 12 agree 0.40 4.18 the arithmetic mean and standard deviation of the second axis american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 41 www.americanjournal.org bthere is a significant influence relationship between (the importance of training and educational qualification of the external auditor when auditing fair value estimates (x) and (the effectiveness of professional skepticism) (y). sixthly /research results : 1. the basis for the external auditor to be aware of the impact of fair value estimates is to possess technical training, scientific qualification and sufficient understanding of the activity of the economic unit. 2. the effectiveness of the professional skepticism of the external auditor is affected by the level of the auditor's cognitive awareness of the impact of fair value estimates. 3. the low level of experience and sufficient skill of the external auditor in auditing fair value estimates in light of the multiplicity of measurement methods and their reliance on personal judgment. 4. the importance of the external auditor choosing appropriate evidence related to the fair value estimates, in a way that stimulates the effectiveness of his professional skepticism and his issuance of professional judgments. 5. the necessity of holding training courses to reduce the challenges and difficulties faced by auditors when auditing fair value estimates in the iraqi environment for the purpose of improving their practices of professional skepticism regarding those estimates. 6. the possibility of conducting more studies that provide an explanation of the iraqi environment to practice professional skepticism effectively while auditing management assumptions of fair value. 7. the auditor's skill and knowledge of the reasons for the fair value estimates help him in resolving fundamental problems in auditing and reflected in the improvement of professional skepticism practices for the auditor 8. the results of the statistical analysis showed that the majority of the sample agreed that acquiring knowledge is correct. it contributes to enhancing the performance of specialized hammers. references 9. bernardin, h., james 2003, human resource management an experiential approach, 3 th ed mcgraw-hill , boston. 10. byars, lioyd l.,and rue leslie, 2004, human resource management 7 th ed mc graw-hill co.,inc. 11. callao gs, gasca gm, jarne jj (2007). gobierno corporativo y deficiencias de la información contable. spanish accounting review, pp.133-156. 12. ciolek, m., and emerling, i. (2019). can we shape trait professional skepticism through university accounting programs? evidence from polish university. sustainability, 11, 1-30. 13. deloitte (2020), bringing the latest insights q2 2020 updated special edition on the impacts of the coronavirus disease (covid 19), june. 14. ester g, marin-hernandez s, garcia-perez de lema d (2012). internal audit and financial reporting in the spanish banking industry. managerial auditing journal pp.728-753. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 42 www.americanjournal.org 15. gemayel, rio saad, 2005, the relationship between the client's team strategy and capital a study of the opinions of a sample of professors of research centers and consulting offices a master's thesis university of mosul. 16. nherliansyah, y., & ilyas, m. (2006). pengaruh pengalaman auditor terhadap penggunaan bukti tidak relevan dalam auditor judgment. sna 9 padang, 23-26 17. krishnamoorthy g (2000). a cascade inference model for evaluation of the internal audit report. decision sciences 32(3):499-520. 18. nasution, h. fitriany. 2012. pengaruh beban kerja, pengalaman audit dan tipe kepribadian terhadap skeptisme profesional dan kemampuan auditor dalam mendeteksi kecurangan. jurnal dan prosiding simposium nasional akuntansi. 19. rahayu, s. k., & suhayati, e. (2010). perpajakan teori dan teknis perhitungan. yogyakarta: graha ilmu, 139. 20. rahmida, m., & urumsah, d. (2020). determinan deteksi fraud audit: peran moderasi gender dan pengalaman. in proceeding of national conference on accounting & finance (pp. 1-10). 21. siriwardane, harshini p., billy kin hoi hu and kin yew low ((skills, knowledge, and attitudes important for present-day auditors)) international journal of auditing :2014 22. whittington , o.r. ,pany , k. , " principles of auditing & other assurance services " , sixteenth edition ,2004 . 23. yang. z, bai. h 2009, building a maturity model for college library knowledge management system, international conference on test and measurement, ieee american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 120 www.americanjournal.org advantages of using remote banking services in commercial banks of uzbekistan karachayeva mashkhura valijonovna teacher, department of “banking”, tashkent institute of finance, tashkent city, uzbekistan. e-mail: mashuravalizonovna@gmail.com a b s t r a c t k e y w o r d s this article examines the importance of remote banking services in banking, the channels of their provision and the possibilities of further expansion. the state of development of remote banking services in the practice of commercial banks of uzbekistan was analyzed on the basis of collected statistical data, and opinions of foreign and local scientists on this topic were also presented. also, proposals and recommendations were made regarding the further expansion of the types of remote services of the commercial banks of our country. economy, banking sector, commercial banks, remote banking system and services, information technologies, digitization processes introduction the most effective way to ensure the competitiveness of commercial banks is to gain the trust of customers and create all the conveniences for them, as well as to increase the type, quality and speed of services. in order to ensure competitiveness, banks feel a greater need to introduce modern banking services and use new technologies. in particular, in this regard, the president of the republic of uzbekistan sh. mirziyoev said in his speech, “...we must take drastic measures this year to develop the banking system. starting from 2020, a large-scale transformation program will be implemented in each bank. in this regard, increasing the capital, resource base and income of our banks will be the focus of our special attention” [1]. taking into account the above, the banking system in recent years a number of documents were adopted, aimed at liberalization and adaptation to the conditions of free competition. in particular, the adoption of resolution no. 3620 of the president of the republic of uzbekistan on march 23, 2018 “on additional measures to increase the popularity of banking services”, existing problems in the provision of banking services and implementation by banks determined the necessary measures [2]. in particular, the development and promotion of innovative products for non-cash payments, including non-contact and mobile technologies; introduction of non-communication and mobile technologies, first of all, in the spheres of social and household services, transport, trade, catering, especially in the regions; ensuring cooperation with international payment systems, etc. now, if you go to any district or village in any region of our republic, you will see that the people’s bank is gradually installing atms in front of the buildings of all neighborhood assemblies in almost american journal of business management, economics and banking volume 12 may, 2023 p a g e | 121 www.americanjournal.org all neighborhood assemblies, and providing atms to areas without atms. -step you can see in progress. another such possibility is that pensioners who receive their pension funds in the form of cash are recommended to open personal pension overdraft cards of the people’s bank and transfer pension funds to these bank cards. this, in a certain sense, eases people’s burden and gives them a number of conveniences. 2. literature review research works of a number of scientists on the topic were closely familiarized. in them, the opinions of scientists on remote banking services were analyzed. in particular, according to russian economist v.k. spilnichenko, “remote servicing of a bank account is a complex of information services and execution of operations on the client's account based on his instructions without visiting the bank. the remote bank account service system is based on the client’s request to the bank’s database through the telecommunication system” [3]. n.i. likhodeyeva recognized the remote bank account service system as a technology for providing banking services on the basis of remote orders without visiting the bank using computer technologies [4]. k.a.zabrodiskaya, a.o.zakharova “remote banking services are the activities of creating optimal conditions for the bank's customers by providing remote service to their bank accounts” [5]. summarizing the above opinions, remote bank account servicing systems can be defined as technologies for providing banking services based on customer orders remotely (without coming to the bank). the analysis of this problem revealed the lack of comprehensive studies on the issue of capitalization of commercial banks in uzbekistan. there are no clearly developed and used in practice measures on this topic. the very concept of capitalization is still not associated with the market interpretation of this term in relation to domestic credit institutions. until now, both in the scientific community and the banking community, capitalization is understood only as an increase in the bank’s own capital. for example, peter s. rose notes that “we often use the term capitalization, meaning by this own funds or equity capital of banks and its sufficiency to cover risks” [6]. economist v.usoskin paid special attention to improving the quality of loans and cash assets, which are the main types of assets of commercial banks. in order to improve the quality of the loan portfolio, v. usoskin proposes to improve the system of assessing the creditworthiness of customers, strict adherence to the principle of diversification in the formation of the loan portfolio [7]. however, despite a significant number of studies devoted to theoretical, methodological and applied problems that arise in the process of developing cashless payments, in the context of the introduction of information and innovative technologies in the banking system, in our opinion, the theoretical and methodological support of this process has not been fully formed. 3. research methodology in the implementation of scientific work, in the development of remote services of commercial banks, interviews with scientists and representatives of the field, analysis of their written and oral opinions, expert evaluation, observation of processes, systematic approach to economic events and processes, comparative analysis with the author’s experiences conclusions and recommendations are given in the relevant directions. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 122 www.americanjournal.org 4. analysis and discussion of results in recent years, various innovative banking services have been offered by banks in order to improve the quality of services provided to customers. in particular, the traditional “bank-client” system, which provides remote banking services, is widespread in our republic and is implemented in all banks. to use this system, a special program is installed on the client's computer and interaction with the bank's information system is ensured through communication channels. however, due to the need to connect to a specific workplace and use specialized programs when using the “bank-client” system, the possibility of using this system is limited [8]. the online banking (internet banking) system is widely used, which provides operation through the internet network and a simple browser, that is, a common program that allows the client to access the network. internet banking technology creates additional convenience for both the bank and customers. in particular, the client has the opportunity to carry out banking operations on his account from anywhere and at any time via the internet without going to the bank. can get information about actions. this creates the advantages of saving time and money for the client, freely choosing a bank regardless of the distance and proximity of the address, and quickly managing their funds. also, in cooperation with commercial banks that are participants of the “uzcard” interbank payment system, the creation of a national technological platform that works in the “on-line” mode will allow the client to manage his card accounts in real time through internet banking services, utility and other gives him the opportunity to fulfill his wishes [9]. table 1. analytical information about transactions through instant payment system of central bank [10] years number of commercial banks transactions during including the budget number amount number amount 2023 31 2 187 884 44 bill. sum 920 478 2,9 bill. sum 2022 32 1 333 266 32 bill. sum 317 504 1,4 bill. sum it can be seen from the data in the above picture that the number of users of the system has increased significantly in the last three years. if we talk about the evolution of this system, the initiators of remote banking services are the unified all-republic processing center and the click company. table 2. number of customers applied remote banking systems as of april 1, 2023 [10] years legal entities and individual entrepreneurs individuals total by banks 2023 1 214 790 34 489 525 35 704 315 2022 995 551 20 545 502 21 541 053 2021 844 581 14 796 429 15 641 010 2020 699 901 9 684 076 10 383 977 2019 498 601 8 718 926 9 217 527 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 123 www.americanjournal.org from september 1, 2013, the uzcard-click joint project of the unified all-republic processing center and the click company was implemented. within the framework of this project, all uzcard online plastic card users of any bank in uzbekistan can connect the uzcard sms-notification service to their mobile phone at any bank or infokiosk. then it is necessary to connect your uzcard online plastic card to the system by sending a free ussd request from a mobile phone connected to the smsnotification service. after that, the user can pay from a plastic card via mobile phone. the distinguishing feature of this project is that all payments are made without intermediary fees. implementation of such modern projects that provide innovative services to users of online plastic cards in many ways, it enables the development of the cashless settlement system in our country. table 3. number of customers applied remote banking systems as of april 1, 2023 (top 12 banks) [10] № bank’s name legal entities and individual entrepreneurs individuals total by banks 1 national bank 92 128 1 552 356 1 644 484 2 uzbek industrial and construction bank 65 275 4 927 727 4 993 002 3 agrobank 189 572 4 894 661 5 084 233 4 ipoteka-bank 151 940 2 407 289 2 559 229 5 mikrokreditbank 56 915 924 908 981 823 6 xalq bank 99 428 4 891 922 4 991 350 7 garant bank 8 313 101 980 110 293 8 qishloq qurilish bank 27 907 379 152 407 059 9 turonbank 42 615 360 534 403 149 10 hamkorbank 113 042 1 369 719 1 482 761 11 asaka bank 36 514 976 482 1 012 996 12 ipak yuli bank 53 162 1 665 731 1 718 893 remote banking services are provided in the segment of legal entities and private entities, as well as individuals. tif national bank, agrobank, people’s bank, ipoteka-bank and uzbek industrial and construction bank have an incomparable share in the total number of mazur system users, their combined share is almost 50 percent. now let’s get acquainted with the systems of remote servicing of bank accounts, remote servicing of accounts these are the technologies of providing banking services on the basis of remote instructions (without visiting the bank). it is mainly done through computer and telephone networks. there are several types of remote accounts for bank accounts: bank-client is a computer-based system in which a special program is installed on the client’s computer. this program stores all customer data on the computer (mainly payment documents and statements from accounts). there is a direct connection between the bank and the client’s computer via a modem. internet-banking is a system that gives customers the right to manage their deposit american journal of business management, economics and banking volume 12 may, 2023 p a g e | 124 www.americanjournal.org accounts, including accounts opened with plastic cards, via the internet. this type of service is a system designed to make real-time payments when the customer is remotely connected to the bank. the user logs in through a web browser. table 4. information about issued banking cards, pos-terminals, atm’s and self-service kiosks as of apreily 1, 2023, also transactions carried out through pos-terminals in yanuarymarch of 2020-2023 [10] years number of bank cards issued into circulation number of installed pos-terminals number of installed atms and self-service kiosks 2023 36 586 822 428 754 20 617 2022 27 839 307 433 986 13 156 2021 22 278 917 440 356 12 289 2020 21 008 149 414 551 10 165 the internet-banking system will be hosted on the bank’s web server. the user has the opportunity to view all their information (payment documents and statements from accounts) on the bank’s website. through the internet-banking service, the client can do it at his workplace or in other convenient conditions: transfer of payments; monitoring of payment stages; provides access to all operations at any time, such as receiving all reports. through internet banking, the client will be able to connect to the bank’s website from his workplace, see the money coming to his account, prepare money transfers and transfer them to the bank. mobile banking system is based on internet banking technology. sms-banking is a bank deposit for customers is a system for receiving information in the form of sms about transactions on accounts and accounts opened on plastic cards. to get information from the account, the client must send an sms-request to a special telephone number of the bank. sms-banking service for the client allows you to perform the following actions: funds received on the account; expenses from the account; account balance; will be able to receive operational information on banking operations conducted during the day. in general, in essence, the difference between traditional and remote banking service schemes of bank and customer communication is not very big. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 125 www.americanjournal.org figure 1. information about issued banking cards, pos-terminals, atm's and self-service kiosks as of march 1, 2023, also transactions carried out through pos-terminals in yanuaryfebruary of 2023 (top 12 banks) [10] both banking services and accounts have remained “in place”, only the type of communication that “connects” the bank employee and customers has changed. that is, transactions that can only be performed in a bank office, now can also be done remotely. the client can “rest on his feet” and not have to waste precious working time on the way to the bank building, claiming that he will perform a minute operation [11]. types of remote banking services, such as customer banking, internet, telephone or mobile banking, despite their differences, have the following common advantages over traditional methods of customer service: • improving the quality of service, the time limit will be removed through the remote banking service, ie the customer will be able to manage their account seven days a week, twenty-four hours a day; • in addition to time constraints, the customer’s geographical location is also ignored. 5. conclusions and suggestions as a result of the analysis of the prospects for the development of remote banking services in uzbekistan, the following proposals and recommendations were developed: 1. each commercial bank should develop its own strategic program for the development of remote banking services in commercial banks, the development of a remote customer service system. in this program, it will be necessary to develop a road map for the step-by-step transfer of all types of services to remote and online mode. in this road map, it is necessary to mention the source of financing of the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 126 www.americanjournal.org tasks, the implementation period, the department responsible for implementation, and the project launch period. 2. currently, the types of services provided remotely by commercial banks include utility and other payments, card-to-card money transfers, online conversion, online deposit services, as well as retail lending services in some banks. and their type at the next stage increase is desirable. in particular, these include sending and receiving funds abroad through integration into international money transfers, including the service of virtual emission of plastic cards. 3. it is natural that the development of remote banking services creates the need to identify customers. taking this into account, it would be appropriate to create opportunities for integration of all mobile banking services from the database of the ministry of internal affairs in the event of the need to identify an employee when providing customer service. 4. developed countries have many years of experience in introducing, developing and improving the system of cashless payments based on innovation and digital technology. in addition, an analysis of the best practices of developed countries shows that the system of cashless payments has been improved under the influence of innovative ideas and technologies [12]. 5. in today’s world, leading banks strive to endlessly improve the quality of banking services offered while reducing the cost of their maintenance. the range of banking and financial services is expanding every year, new types of products and services are constantly appearing on the market. this factor serves to intensify competition between banks for each client. therefore, each bank builds its relationship with the client, based on the principles of partnership. 6. literatura/reference: 1. address (2018) address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis, december 3 issue of xalq sozi newspaper. 2. resolution no. 3620 of the president of the republic of uzbekistan dated march 23, 2018 “on additional measures to increase the popularity of banking services”. 3. spilnichenko v.k. transformation of banking payment systems in the russian economy // economic journal. 2012. no. 2 (26). 4. likhodeeva n. i. the use of electronic banking when concluding and executing banking agreements [text] / n. i. likhodeeva // legal work in a credit institution. 2014. no2. s. 23-27. 5. zabrodiskaya k.a., zakharova a.o. fundamentals of the development of remote banking services. belarusian state economic university. 2012 57 page. 6. shomurodov r. t. et al. issues of increasing the capitalization of commercial banks in the context of innovation // young scientist. – 2021. – n. 25. p. 237-243. url: https://moluch.ru/authors/131302/ 7. diana mcnaughton, chris barltron. banking institutions in developing countries. washington, dc, ide, 1993., p. 21. 8. bakhtiyor o‘g‘li o. b. theoretical aspects and methods of increasing regional investment attractiveness //e global congress. – 2023. – №. 4. – с. 98-101. 9. очилов б. mamlakat iqtisodiyotini rivojlantirishda investitsion jozibadorlikni yaxshilash masalalari //экономика и образование. – 2023. – т. 24. – №. 1. – с. 75-81. 10. prepared by the author based on information from the official website of the central bank of the republic of uzbekistan www.cbu.uz https://moluch.ru/authors/131302/ http://www.cbu.uz/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 127 www.americanjournal.org 11. bakhtiyarovich o. b. investment activities and performance of gigamon companies around the world //czech journal of multidisciplinary innovations. – 2022. – т. 6. – с. 1-6. 12. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 69 www.americanjournal.org interbank competition for attracting idle funds of legal entities and individuals inomjanov muslimjon qakhramonovich graduate student of tashkent financial institute a b s t r a c t k e y w o r d s the article describes measures taken by banks to attract funds from legal and natural persons, restrictions and privileges in providing deposits to the population, as well as the control of the activities of commercial banks in attracting deposits by the central bank, researches about laws and regulations will be covered. population savings, depositor, deposits, bank resources, deposit operations, depositors, commercial banks, characteristics of the quantitative limit of depositing. introduction the economic reforms implemented in our republic cause serious changes in all sectors of the economy and in the regulation of macroeconomic processes. this, in turn, requires and provides an opportunity to conduct monetary and credit policy in accordance with the new conditions and to improve it qualitatively, as well as the implementation of clearly defined measures in this direction. after transitioning to market relations, the development and improvement of the provision of banking services to the population becomes important. therefore, it is important to gain customers' trust in bank deposits and to create all the conveniences for them, as well as to increase the type, quality and speed of services. for this, commercial banks feel the need to introduce modern services and use new technologies. deposits of the population play an important role in bank resources. they can be paid in full or in installments. the depositor's relationship with the bank is confirmed by issuing a deposit book. banks accept various target deposits, term or demand deposits and receivable deposits on a repayment basis. material and method bank resources can be divided into two large groups. these are the banks' own funds and borrowed funds. raised resources are divided into two these are raised deposits, other liabilities and purchased resources. these resources are used in the implementation of the bank's asset operations, that is, the bank's resources are placed in various sectors in order to earn income. due to the fact that the bank's passive and asset operations are closely related, the composition and nature of liabilities is largely reflected in the implementation of asset operations of banks. at the same time, the resources, in turn, are affected by the change in the lending policy of banks. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 70 www.americanjournal.org deposit transactions are transactions involving the attraction and storage of funds of legal entities and individuals for a certain period of time for deposit purposes based on the contracts concluded by banks with depositors. in cases where the depositor is unable to come to the bank or he is unable to independently fill out the necessary documents related to deposit operations, operations on his deposit are carried out by a trusted person. his authority should be based on the current legislation. in the republic of uzbekistan, legal entities and individuals can be subjects of deposit transactions. deposits can be made in cash or non-cash form. the minimum amount of deposit made by a legal entity or an individual is determined independently by each bank. the maximum amount of deposit accepted by the bank is not limited. all deposits are accepted and paid on a current account basis. deposits received in the form of drafts, checks, money orders, state treasury guarantees and other forms are accepted subject to collection, however, the amount is not considered to be included in this deposit until it reaches the bank's account. deposits can be accepted from individuals, as well as from young people who have reached the age of 14. minors between the ages of 14 and 18, who have made deposits in their name, dispose of their deposits independently. any competent individual can make a deposit in the name of a minor. any guardian or trustee can open a deposit account in the name of the person entrusted to his guardianship. banks' ability to attract funds is limited, and in all countries this process is regulated by the central bank. the borrowed funds make up the main part of the credit resources of commercial banks. on june 19 of this year, the proposals prepared by the budget and economic reforms committee of the lower house of the parliament were discussed with the participation of representatives of political party factions. the development of the real sector of the economy, finance and in order to increase confidence in the banking system and to develop the capital market, the issue of attracting free money of the population to the economy was in the center of attention of the deputies. according to experts, in order to attract the funds circulated in the "secret economy", it will be good to legalize them and announce a "capital amnesty" for a specified period. in russia, georgia, kazakhstan and other countries, this practice was adopted as a "financial amnesty". therefore, in the opinion of the deputies, it is appropriate for the capital amnesty to be adopted by the parliament in the form of a law in uzbekistan. a document adopted in the form of a law inspires more confidence in citizens and becomes an object of parliamentary control. today, increasing public confidence in the banking system and offering attractive bank deposits are the main factors in attracting free funds. according to the mps, the market should set the deposit rates based on real inflation levels. it is also important to develop the system of protection of people's deposits, and meeting international standards will increase people's confidence in the banking system. results. according to the publication on the balance of payments, international investment situation and foreign debt of the republic of uzbekistan, published by the central bank, the balance of deposits of legal entities and residents operating in the country over the last three years is 11, 5 billion is us dollars. it is noted that this amount consists of remittances sent from abroad in the last three years, the main part of which is kept in people's houses or is circulated in the "secret economy", the share of which is estimated to be more than 50 percent, mainly without official sale to banks. can be in addition, the participants discussed the proposal of the committee to introduce the system of mandatory declaration of citizens' incomes in the republic. this system provides social support to the population, creates a fair taxation system and helps identify the informal economy. also, the process american journal of business management, economics and banking volume 12 may, 2023 p a g e | 71 www.americanjournal.org of compulsory declaration helps to fight against corruption and secret economy, as well as fill the state treasury, and increase the international social development rating of our country. conclusions and suggestions in our opinion, it is appropriate to implement the following in order to further improve the interbank competition for attracting idle funds of legal entities and individuals: 1) it is necessary to further strengthen the dependence of deposit, credit and other operations on ensuring the stability of the bank and diversify resources in order to reduce risks; 2) categorization of the deposit portfolio (by clients) and therefore individual direction of clients by type; 3) in the conditions of the transition of the monetary and credit policy to an active stage, it is necessary to continuously conduct open market operations to ensure the compliance of the liquidity in the banking system with the target operating indicators. in addition, by launching a single electronic platform of the interbank money market, it is possible to gather information on the free funds of commercial banks on a single platform and to create an opportunity for market participants to monitor the dynamics of interest rates, which serves the formation of interest rates based on market mechanisms. does. 4) proper appointment of bank employees and distribution of powers. that is, if the appointment of employees in commercial banks taking into account their perspective and the correct distribution of work skills and powers, this will lead to the development of the bank. it is desirable to use knowledge and skills in the narrow sense. qualified personnel should be involved in the development of bank deposit policy. in conclusion, we can say that in all countries based on the market economy, commercial banks occupy a leading place in the payment mechanism of the economy. bank resources are formed through passive operations carried out by banks and are kept in the passive part of the bank's balance sheet. time deposits provide the bank with a stable resource base compared to other types of deposits. based on this, when looking at the issues of resource stability, it is necessary to pay attention to the guarantee of deposits. list of used literature 1. hpabulqasimov, o. ya. khamrayev "regulation of the economy by the state" study guide tashkent "economy-finance" 2014, p. 164. 2. a. razzokov, sh. toshmatov, n. ormonov, p. khoshimov, f. egamberdiyev history of economic teachings (study guide) tashkent 2005 p. 329. 3. decree of the president of the republic of uzbekistan dated february 7, 2017 no. pf-4947 "on the strategy of actions for the further development of the republic of uzbekistan"//collection of legal documents of the republic of uzbekistan, 2017, no. 6, article 70, national database of legal documents, 31.07.2018, no. 06\18\5483/1594. 4. address (2017) address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis, december 23 issue of xalq sozi newspaper 5. fatf (2020), guidance on digital identity, fatf, paris, www.fatfgafi.org/publications/documents/digital-identity-guidance.htm 6. https://uidai.gov.in/images/commdoc/valid_documents_list.pdf ). http://www.fatfgafi.org/publications/documents/digital-identity-guidance.htm https://uidai.gov.in/images/commdoc/valid_documents_list.pdf american journal of business management, economics and banking volume 12 may, 2023 p a g e | 72 www.americanjournal.org 7. the world bank. 2017. identity principles for sustainable development: towards the digital age. washington dc: world bank group http :// id 4 d . worldbank . org / principles . the list of signatory organizations is available on the website. 8. unhcr registration and identity management manual https :// www . unhcr . org / registration guidancehapter 5/ registration / american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 15 www.americanjournal.org financial management system's effects on global economic development patterns ammar neamah awada al-nahrain university, collage of information engineering, baghdad, iraq ammar69a@yahoo.com anas mahmood ibrahim al-nahrain university, collage of information engineering, baghdad, iraq anasmahmood.1981@gmail.com a b s t r a c t k e y w o r d s the study examines the effects of key global economic growth trends, such as globalization, financialization, fractionalization, intellectualization, and socializing, on the financial system as a management object. the main outcomes of this influence include the emergence of qualitatively new financial services, products, and instruments; modifications to the mechanisms and volumes of the delivery of financial services under conditions of increased financial risks, increased instability, and cyclical development of financial markets; and threats of global financial crises. due to the imbalance of cash flows, the financial system's separability from other economic sectors, and the need to reorient financial flows for sustainable development and the pursuit of new standards for investment and financial efficiency activities of economic subjects in the "natureproduction-society" system, it is difficult to bring the financial system into equilibrium. management into a true engine of the introduction of fresh concepts and innovations, and the effectiveness of reproductive processes. the change in the conceptual underpinnings of the development of a new paradigm of financial management in the twenty-first century led to a conclusion. the main principles of the formation of the financial management system in the changing economy include the dominance of the value paradigm as the basis of value-oriented financial management, the priority of adaptive financial management of changes by cycle phases, recognition as the primary criterion for the effectiveness of maximizing operating cash flows, increasing the role financial system, financial management, global megatrends, value-oriented financial management. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 16 www.americanjournal.org of financial managers in resolving agency conflicts, and transformation of information, among others. introduction reality of the concept. a radical theoretical rethinking of conventional scientific paradigms of economic processes as well as the theoretical and methodological substantiation of the modern content of financial management of domestic business in accordance with threats and challenges are urgently required in light of the profound transformations that have been dynamically taking place in the global environment since the beginning of the 21st century. the question of scientifically rethinking the most recent processes and phenomena in the system of the established conceptual apparatus with the aim of developing a modern concept of financial management, adequate to the dynamics of contemporary changes in the financial markets is raised in the context of financial globalization and increased market turbulence. the effectiveness of the financial system's influence on the socioeconomic development of society is largely dependent on the perfection of financial management methods and their compliance with contemporary needs, as evidenced by the experience of many countries, including both developed market economies and transformational ones. the validation of the conceptual underpinnings of the contemporary financial management system, as they relate to dynamic changes, uncertainty, and instability of the new geo-economic space, assumes significant significance in the context of the aforementioned (1,2) . first and foremost, just to learn more about the modern financial management system's evolutionary development and the influences that contributed to it. however, we also think that given the conditions of the new millennium's dynamic socio-economic transformations, as well as the intensification of crisis phenomena and upheavals, it is time to review and broaden the interpretation of the conceptual essence of paradigmatic shifts in the financial management system under the influence of global megatrends. this is because, in our opinion, doing so will enable a more in-depth understanding of the phenomenon at hand. there are gaps in the justification of managerial financial decisions from the perspective of taking into account the influence of contemporary global megatrends of economic development, according to an analysis of publications on the issues of financial management in the field of business at the current stage of economic development. at the same time, when fresh obstacles to the global financial system and genuine dangers from the split of the domestic economy emerge, without taking into consideration the conditions that led to the emergence of global megatrends, their trajectory, and their effects on the multi-level system of financial relations, it is no longer possible to build a financial management strategy and tactics. updated scientific research on the justification for significant changes in the financial management paradigm caused by global megatrends is being made in the plane above. as a result, the study's goal is to examine global megatrends in the context of how they affect the financial system as a management target and, using this as a foundation, to support the conceptual underpinnings of financial management while taking into account the profound paradigm shifts brought on by the third millennium's new circumstances (3).the major information being presented. radical qualitative changes in the characteristics and value foundations of business and social life under the influence of largescale, long-term processes of world development are the causes of the transformational processes in the era of global changes that humanity is experiencing in the new millennium. these processes are referred american journal of business management, economics and banking volume 14 july, 2023 p a g e | 17 www.americanjournal.org to as megatrends since they are long-term in nature as opposed to short-term local trends, global repercussions and a considerable influence on the development of new paths for a wide variety of economic relationships, including the paradigm of financial management for the new millennium. the book "megatrends" by american futurist john, which was initially released in 1982, is where the phrase "megatrends" first arose (11). following that, this phrase became extensively used in economic literature to describe the global macroeconomic development elements that have an impact on all human beings' enterprises, economies, societies, cultures, and personal lives (4). research problem to reveal the theoretical underpinnings of the paradigmatic changes in the financial management system that occurred as a result of risks and difficulties in the global environment. literature review modern socioeconomic megatrends are characterized by a very rapid pace of civilizational advancement, large modern socio-economic megatrends are characterized by a very rapid pace of civilizational advancement, notable tension and intensity, and major shifts in worldview markers under the mutually determined effect of a number of causes. the primary megatrends that define the current stage of economic development cannot be distinguished or reduced to a single concept in the scientific discourse. among the several viewpoints on how to evaluate megatrends, we will single out some diametrical ones in order to expand the vision of the investigated problem. thus, in particular (1) refers to the main megatrends of economic development: 1) globalization; 2) financialization; 3) informatization; 4) intellectualization; 5) socialization. wikipedia gives a slightly different configuration of the main world megatrends of economic development (8): 1) globalization; 2) accelerating the pace of social development; 3) regionalization; 4) network space; 5) non-state factors; 6) polycentrization; 7) universalization of migration flows; 8) crisis of global leadership (10). consider megatrends in historical retrospect, and in this plane, single out the so-called "yesterday of the day" megatrends that were relevant at the end of the 20th century and are still relevant in the 21st (transition from an industrial to an information type of society; development of internet technologies and electronic commerce; outsourcing, franchising, leasing, etc. popular business models that significantly expanded the sphere influence; demography, urbanization linked to raising living standards and many other things).despite having various scientific methods, the classifications listed above all take into account the crucial effects of globalization and the informationalization of society on the global economic system as it moves from an industrial to a post-industrial economy, in addition, they correctly emphasize the need to consider the connection between dynamic changes in the structural organization of the economy and the strengthening of the development of the financial sector and the increase in volatility of the movement of financial resources, on which most scientists do not always pay attention [6]. this is done by justifying the aforementioned stage of the genesis of economic systems. in light of this study's issue, the recommended classification of contemporary megatrends in economic growth, is more justified because the financialization megatrend, which is characterized by profound changes in the structure of the contemporary global economy in relation to the hypertrophied dominance of the financial sector, is directly influenced by the financial sector's rapid evolution and growth in importance, which cannot help but have an impact on new vectors of the development of the american journal of business management, economics and banking volume 14 july, 2023 p a g e | 18 www.americanjournal.org financial management system. we described the main global megatrends' contents in table 1 and noted their management-related impact on the financial system. table no (01): the influence of the main megatrends of economic development on the financial system as an object of management the main megatrends essential signs influence on the financial system as an object of management globalization formation of a new geoeconomic space controlled by transnational capital the emergence of qualitatively new services, financial products, and financial instruments as well as the actualization of global coordination of financial policies of various states as a condition for the stability of the global financial system are all examples of how the financial sphere has become more global under the influence of communication and computer technologies. financialization cardinal shifts in the structure of the modern world economy are associated with the hypertrophied dominance of the financial sector. financial risks have increased, financial markets have become more volatile and cyclical, there is a threat of a global financial crisis, and it is challenging to bring the financial system to an equilibrium state because of the imbalance in money flows and the separation of the money supply from real security. informatization large-scale use of information and computer technologies in all spheres of life, transition to an information society. consolidation of space and a reduction in the amount of time needed to perform international financial transactions, "virtualization" of tools used to conduct financial transactions, and a definite rise in the demand for cyber threat defense. intellectualization radical increase in the role of human capital as a driving force of socio-economic development thanks to the realization of its creative potential. the success of reproduction processes, the introduction of new ideas, and innovations are all guaranteed by the high quality of management in general and financial management in particular. socialization subordination of economic processes to the interests of development person and society as a whole. updating the search for new metrics for gauging the financial and investment success of economic entities operating in the "nature-production-society" system in light of resource limitations and the need to integrate economic, humanistic, and ecological factors the evolution of the present financial management system's formation should be taken into account while analyzing the effects of the aforementioned elements on it. table 2 summarizes the key phases of the development of scientific methods to general management and the impact of well-known scientific schools on the advancement of finance management. the scientific methodologies included in the table, which are the most advanced in the literature on economics, investigate the management structure as a subject. simultaneously, new methods for managing complex systems have lately emerged, including optimization, synergistic, transdisciplinary, reflexive, "people-centered," and others. as the analysis demonstrates, changes in the strategic resources required for the development of the economy and the satisfaction of fundamental social needs in the process of the genesis of economic systems heavily influence the evolution of the development of financial management and its complications its tasks in the process of civilizational progress. for example, t. v. melnyk specifically mentions raw commodities as such strategic resources in the preamerican journal of business management, economics and banking volume 14 july, 2023 p a g e | 19 www.americanjournal.org industrial economy, capital financial in the industrial sector, and knowledge in the post-industrial economy (9) .the main management tasks involved the rational formation, distribution, and use of financial resources while taking into account the priorities of a particular historical stage. at the same time, because the need for financial management emerged already in the industrial economy, its evolution happened much faster. thus, brigham e. f., an american scientist, points out (3) that the legal aspects of the merger of various companies, the formation of new firms, and the emission of various securities for the purpose were already the main subject of the study of financial management at the beginning of the 20th century in the usa due to the influence of the rapid development of commodity markets and the need to concentrate significant amounts of capital for the real sector of the economy. during the great depression of the 20th century, financial markets expanded along with a rise in the economy's volatility. in the post-crisis era (the 1950s and 1960s of the 20th century), the emphasis of financial management accordingly shifts to the adoption of optimal financial decisions regarding the formation of the capital structure and the justification of rational directions for its placement with the aid of optimization models. this is because the subject of financial management becomes more complicated as a result of the development of the principles of anti-crisis financial management of companies. since financial management has been evolving over the past century, its subject has expanded, financial processes have improved, and instruments have become more complex (5,7,8). table no (02): systematization of scientific management methodologies and their impact on the creation of the conceptual framework for financial management the name of the scientific approach the essence of the approach schools of management that followed this approach and their main representatives influence on the development of financial management traditional approach work, people, administration, motivation, and system company management are all examples of management components. the primary focus of the study is labor efficiency at lower management levels. classical (traditional) school of management. representatives: f. taylor, h. emerson, h. ford, s. thompson, l. allen, m. follett, r. shelton and others. the groundwork has been laid for improving the effectiveness of employee interaction in the financial services industry and rationalizing company operations. functional (process) approach goal-setting, planning, organizational work, motivation, and control are all parts of the management process. the fundamental ideas and duties of administratively functional school of management. representatives: a. fayol, j. mooney, a. reilly, h. koontz, s. the groundwork for effective financial management has been established. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 20 www.americanjournal.org management are investigated. o'donnell,c. bernard and others. a systematic approach the company is viewed as a system with input, output, feedback, and influences from outside sources. classical (traditional) school of management. representatives: f. taylor, h. emerson, h. ford, s. thompson, l. allen, m. follett, r. shelton and others. the necessary conditions have been established for comprehending financial management as a system of rational financial management. situational approach depending on the specific situation, management techniques are chosen, taking into account the influence of the most significant situational aspects. classical (traditional) school of management. representatives: f. taylor, h. emerson, h. ford, s. thompson, l. allen, m. follett, r. shelton and others. the groundwork has been laid for improving the effectiveness of employee interaction in the financial services industry and rationalizing company operations. the financial management system has undergone significant changes as a result of the new economic realities that have emerged since the turn of the 21st century, which have led to a need to reconsider its conceptual underpinnings in the context of paradigmatic shifts under the influence of the global megatrends shown in table 1. appropriate dynamics of contemporary changes in economic processes are required to establish a current idea of financial management. the analysis of this problem enables us to draw the conclusion that as the complexity of the international financial markets and the instability of economic processes rise, entirely new objectives emerge and, under the impact of the aforementioned factors, a complex of financial management duties are formed. in addition, the importance of equity capital and long-term sources of funding for economic organizations is particularly expanding as economic crisis occurrences become more prevalent and it becomes harder to maintain financial stability. however, operating cash flow, which determines objectively the requirement for its synchronization with capital needs in each particular period, is the primary measure of the efficiency of the use of invested capital as opposed to net profit. to support managerial financial decisions, it is advisable to employ operating cash flow and the calculation of all financial coefficients. conclusion the five main global megatrends of economic development—globalization, financialization, informationalization, and intellectualization—cause specific changes in the financial system as an object of management, which are significant to take into account when conceptualizing financial management principles in the age of global changes: the emergence of qualitatively new financial services, financial products, and financial instruments; changing the mechanisms and volumes of financial services provision in response to rising financial risks, increased market instability and american journal of business management, economics and banking volume 14 july, 2023 p a g e | 21 www.americanjournal.org cyclicality, and threats of a global financial crisis; the inability of the financial system to reach equilibrium due to the imbalance of cash flows and the separation of the money supply from real security; the consolidation of space and reduction of time spent on conducting international financial transactions; the "virtualization" of financial instruments; and the objectively growing need for protection against cyber threats; the need to reorient financial flows to sustainable development and look for new metrics for the effectiveness of investment and financial activities of economic entities in the "natural production-society" system. the transformation of financial management into a real one as the driver of the efficiency of reproduction processes, the introduction of new ideas and innovations. the primary focus of financial managers of businesses should be on resolving a complex of management tasks that have a new relevant content in light of the impact of the aforementioned megatrends: ❖ look for ways to make the most of the limited financial resources available and proper justification of recommendations for investing money in assets that will generate the best return with the least amount of risk. ❖ management of the company's strategic liquidity through prudent cash flow budgeting. ❖ management of the firm's value through the long-term expansion of its value and the discovery of new prospects for the creation and distribution of financial resources, both of which can contribute to the rise in the total value of capital. ❖ adaptive risk management to conditions of economic process development that are volatile, heterogeneous, unpredictable, and non-linear. ❖ based on understanding of the psychology of consumer behavior with regard to financial products and services, behavioral financial management. the financial manager becomes a key figure and an integrator of the value (cost) of the company in the new dynamic conditions of the development of global financial markets, where the primary strategic resource is no longer financial capital but rather the knowledge and experience of specific managers regarding the use of innovative financial mechanisms, tools, technologies, and business processes. at the same time, the financial manager becomes a participant in agency conflicts as a result of the existing conflict between his interests as an employee (even though he is a member of the company's top management) and the interests of the owners. as a result, the effectiveness of financial management in the context of value-oriented management directly depends on managers' capacity to avoid conflict and align the interests of all parties involved in financial trading. additionally, anti-crisis finance management should be incorporated into the business' security system as a crucial instrument for maintaining sustainable development in times of amplified economic volatility. references 1. eugene brigham (1997). fundamentals of financial management. holt rinehart & winston. 2. john naisbitt (1988). megatrends: ten new directions transforming our lives. grand central publishing. 3. global megatrends. project management institute. 2022. available online: https://www.pmi.org/learning/thought-leadership/megatrends . 4. future of work trends in 2022: the new era of humanity. available online: https://www.kornferry.com/insights/featured-topics/future-of-work/2022-future-of-work-trends. https://www.pmi.org/learning/thought-leadership/megatrends american journal of business management, economics and banking volume 14 july, 2023 p a g e | 22 www.americanjournal.org 5. davenport, t.h.; prusak, l. working knowledge: how organizations manage what they know; harvard business press: boston, ma, usa, 1998. [google scholar] 6. ali, m.; hoque, m.; alam, k. an empirical investigation of the relationship between e-government development and the digital economy: the case of asian countries. j. knowl. manag. 2018, 22, 1176–1200. [google scholar] 7. cao, t. examining the impact of advanced digital economy on employment in china under covid-19. in proceedings of the 3rd international conference on economic management and cultural industry (icemci 2021), guangzhou, china, 22–24 october 2021; atlantis press: berlin/heidelberg, germany, 2021; pp. 1649–1655. [google scholar] 8. the world bank. digital innovation in east asia. the world bank, 2020. available online: https://openknowledge.worldbank.org/bitstream/handle/10986/33260/digital-innovation-in-eastasia. 9. zhang, j.; zhao, w.; cheng, b.; li, a.; wang, y.; yang, n.; tian, y. the impact of digital economy on the economic growth and the development strategies in the post-covid-19 era: evidence from countries along the “belt and road”. front. public health 2022, 10, 856142. [google scholar] . 10. qureshi, z. how digital transformation is driving economic change. 2022. available online: https://www.brookings.edu/blog/up-front/2022/01/18/how-digital-transformation-is-drivingeconomic-change. 11. sassin, w. globalisation and digitisation—the exponential spread of infectious information and its possible containment. beac. j. stud. ideol. ment. dimens. 2020, 3, 010510201. [google scholar]. https://openknowledge.worldbank.org/bitstream/handle/10986/33260/digital-innovation-in-east-asia https://openknowledge.worldbank.org/bitstream/handle/10986/33260/digital-innovation-in-east-asia https://www.brookings.edu/blog/up-front/2022/01/18/how-digital-transformation-is-driving-economic-change https://www.brookings.edu/blog/up-front/2022/01/18/how-digital-transformation-is-driving-economic-change american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 53 www.americanjournal.org the importance of knowledge in increasing the perceptions of the external auditor when auditing fair value estimates and its reflection on the effectiveness of professional skepticism / an analytical study of iraqi auditing firms mohammed ali hussein iraqi university/faculty of administration and economics mhmdlyalbwdt@gmail.com asst. prof. dr. iman shakir mohammed iraqi university/faculty of administration and economics iman.alridha@aliraqia.edu.iq a b s t r a c t k e y w o r d s the research aims to demonstrate the importance of knowledge and its impact on enhancing the external auditor's awareness when auditing fair value estimates, as it is reflected in improving the auditor's practice of professional skepticism. among the findings of the research is that there is a statistical significance for external auditors in iraq in their possession of technical knowledge of evaluation methods and that they have sufficient understanding of the activity of the economic unit in order to realize their responsibilities in identifying and evaluating the risks of material errors when auditing and exercising professional skepticism more effectively in order to achieve quality information in the auditor's report. knowledge, external auditor's perception, fair value. professional skepticism. introduction the auditor should have the ability and knowledge to interpret data and analyze reasons when solving general problems. experienced auditors who have a correct knowledge base but lack the ability to solve problems will not be sufficiently qualified for some tasks. likewise, auditors who have the ability to solve those problems, but do not have a sound knowledge base, their performance will be weak in some tasks, the auditor needs to perform the audit process with quality and efficiency so that he can express the opinion of the impartial technician in the financial statements fairly and honestly therefore, the focus was on the concept of quality as one of the modern concepts in auditing that receives the attention of scientific bodies and societies that are interested in the field of auditing. therefore, knowledge is considered the most prominent means through which the auditor can achieve quality in auditing. the research also aims to answer the mailto:mhmdlyalbwdt@gmail.com american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 54 www.americanjournal.org following question: is the perception of the external auditor dependent on on a set of governance standards, processes, and procedures knowledge whose impact is reflected in their professional skepticism? 1literature review and previous studies the study (oyewo &babajide / 2019) included the post-implementation challenges for measuring fair value international financial reporting standard no. (13) in nigeria, where the study concluded that the most severe challenge to fair value estimates is the scarcity of information to evaluate the elements and the magnitude of these challenges appears to be a. although the characteristics of the auditing firm are similar affecting the perception of the challenges, there is the first agreement that the manipulation of the values of assets and liabilities without a market price during estimation, and taking advantage of the lack of market information on assets/liabilities by managers the manipulation of financial statements, and the low level of training and scientific qualification of auditors are the most prominent challenges facing auditing fair value estimates, while 2017 included examining whether auditors differ in opinion (al, glover, et al., 2017) on the adequacy of audit evidence when auditing fair value estimates. complex, and to identify the relationship of this problem with the expectations gap using the analytical descriptive approach the study recommended the need for auditors to understand all the models used in measuring fair value, especially their shortcomings, by reviewing the research of academics, valuation experts, and agencies concerned with fair value evaluations and management. 2knowledge-based audit profession: there are extensive studies that have extensively reviewed the behavioral and personality characteristics of auditors and experts ( wright, mcknight, 2011: 191), where identification is critical for audit firms in developing training programs and systems for experts, and in defining employment guidelines where it is important for auditors to have a comprehensive understanding of other accounts (adbol,& shanteau, 1992: 58), therefore describing knowledge as the most important among the personal traits. it is to relate that knowledge to the work of the customer's employees so that the main challenge regarding auditing is to write off the customer's activity and its competitive advantage (schult & donnell'o: 2005: 921) in the sense of knowing the customer's business and commercial risks and the information contained in the customer's financial statements. therefore, the audit evolves to the vision of the strategic systems of the units, with a broad understanding of the economic risks and response to those strategies and threats. ( bell: 1997:6 ) (emily & other, 2018:172), whoa, and there are three types. from the knowledge that must be available with the hammer: i.the auditor’s field of knowledge should include knowledge of international accounting and auditing standards. ii.knowledge of sub-disciplines related to specialized industries, and auditors acquire that knowledge through work or training in specific specializations for certain industries, and it is unlikely that this knowledge will be acquired by all auditors who have an m level. iii.general knowledge of the business sector. this type of knowledge is likely to determine the qualifications of the auditor, such as understanding the orientations and motives of management in areas of consistency in performing certain audit tasks. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 55 www.americanjournal.org 3knowledge and its role in increasing the awareness of the external auditor: knowledge in a specific field and understanding of specific problems leads to enhancing the experience and skill that the individual acquires from practice in practical life and through studies and educational courses. it is related to the issuance of professional judgments (herliansyah & ilyas 2006:25), and experience on the basis of activity affects the increase in the auditor’s awareness, which he acquires through dealing with customers, which increases exponentially with the increase in the demand for audit and assurance services by the customer (moronoy & carey: 2007:2). knowledge is an important factor for the auditor’s competence and goes hand in hand with academic qualification. the competence of the external auditor derives from education and experience. actual knowledge is also acquired through practical auditing because the increase in familiarity with the task leads to a greater degree of experience (hudiwinarsih: 2008:256). therefore, the auditor's acquisition of knowledge and experience, including the skill associated with the use of modern methods and techniques, is reflected in g in addition to his ability to audit and express a neutral professional opinion (rodgers et al: 2017:565), the auditor’s ability to discover errors or irregularities is the result of the knowledge that the auditor uses to detect and explain deficiencies. however, auditors are required to increase their capabilities to reduce failure to discover errors. to maintain the reliability of the audited financial statements (dwirandra & suryanawa: 2018:90). 4the role of the external auditor in auditing the fair value estimates of financial assets. the role of the auditor is based on auditing the estimates of the management of the economic unit by examining the soundness of the internal controls of the unit at its planning stage ( \ krishnamoorthy:2000:500). reliable information and improving the sound governance of economic units (ester, et al: 2012:729), where the auditor is interested in making sure that management makes unbiased estimates and evaluates the practice of strong governance and control to help the economic unit achieve the objectives of the financial reporting standard (ifrs9), because the unit needs to inform investors of plans related to evaluations to face the risks of material misstatement. as a result, the auditor enhances assurances about the credibility of financial reports (deloitt: 2020;9) and strengthens internal control as much as possible, with the external auditor searching for the reasons for changes in accounting estimates and assumptions and issues related to the ability to manage the unit to continue, (2018: 8 in this regard, the competence of the external auditor is reflected in examining the quality of the performance of the audit committee, because the audit committees have an impact on the accurate evaluation and pricing of financial assets, and these evaluations cast a shadow over the performance of shares in the stock market, and guide investors to take the right decisions when forming their investment portfolios (hamza, and mselmi ;2017:152). 5testing research hypotheses the research is based on the following hypothesis: there is no correlation or significant effect between the importance of the auditor's knowledge when auditing fair value estimates and the effectiveness of professional skepticism. 6descriptive statistics of the research questionnaire data: in order to identify the relationship between the importance of knowledge of the external auditor when auditing fair value estimates and the effectiveness of professional skepticism from the point american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 56 www.americanjournal.org of view of the auditors of the research sample, the necessary information was collected to design a questionnaire for the research sample of companies and audit offices of the first category, which is found in the 2022 bulletin issued by the profession council. to monitor and audit accounts in iraq. the questionnaire was based on a five-point likert scale and weights for the type of answer in each paragraph ((strongly agree = 5, agree = 4, neutral = 3, disagree = 2, disagree at all = 1) and the weighted arithmetic mean is calculated for each paragraph according to the answers of the research sample to determine the degree of approval by comparing it with the degrees of approval proven according to the five-point likert scale by calculating the length of the period (0.80) through (4/5), which is shown in the following table: table (1) shows the periods of weighted average agreement of response trends degree of agreement (direction of answers) weighted average periods i don't agree at all 1.00 1.79 i agree not 1.80 2.59 neutral 2.60 3.39 agree 3.40 4.19 strongly agree 4.20 5.00 source / prepared by the researchers for ease of dealing statistically with the paragraphs or questions of the axis in the questionnaire form when conducting the descriptive statistics and the rest of the statistical analysis of the form, the paragraphs of the first axis are coded with the symbol x, while the paragraphs of the second axis are coded with the symbol y. table (2) coding the paragraphs of the first axis, the importance of training and qualification for the external auditor when auditing fair value estimates (explanatory variable) source: prepared by the two researchers phrases (paragraphs) paragra ph symbol the availability of understanding of the activity of the economic unit, training and scientific qualification reflects positively on the quality of the professional judgments issued by the external auditor. 𝐗𝟏 the inputs to the fair value estimates are based on personal judgment, which makes it difficult for the external auditor to audit them. 𝐗𝟐 the potential bias by management is one of the most difficult challenges to detect because: some accounting estimates involve uncertainties that lead to substantial risks. 𝐗𝟑 the auditor must make sure that the evaluation method is commensurate with the nature of the item to be evaluated and is compatible with the framework of financial disclosure and the nature of the activity of the economic unit. 𝐗𝟒 auditors face difficulties in obtaining appropriate and sufficient audit evidence when: 1there is no active market price for the asset or liability. 2using inappropriate valuation methods to evaluate fair value estimates. 𝐗𝟓 the auditor is interested in verifying the data sources on which the fair value estimates are based through mathematical recalculation and verifying information sources to ensure internal consistency. 𝐗𝟔 the auditor should verify that the fair value estimation methods are appropriate and that they are applied on a regular basis. 𝐗𝟕 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 57 www.americanjournal.org table (3) coding the paragraphs of the second axis, the effectiveness of professional skepticism (response variable) phrases (paragraphs) paragraph symbol phrases (paragraphs) paragraph symbol the characteristic of the questioning mentality does not adhere to international auditing standards only in thinking, but also includes everything related to understanding and analyzing the facts aim to examine evidence. 𝐘𝟏 the auditor is required to take into account the psychological and personal dimensions when dealing with the customer. 𝐘𝟕 the auditor pays attention to all available information before issuing a professional judgment. 𝐘𝟐 the auditor must match the content of the verbal and nonverbal information in order to reach an understanding of the customer’s personality. 𝐘𝟖 the search for knowledge feature enhances giving clear perceptions of the factors that help in evaluating the evidence according to a realistic and accurate perspective. 𝐘𝟑 the auditor does not allow any external influences to change his skeptical attitude, as he controls himself and his feelings. 𝐘𝟗 the auditor is always ready to reveal knowledge of the mind and has a new mentality, as he practices open questioning. 𝐘𝟒 the tendency of professional skepticism is based on the fact that the auditor possesses selfconfidence and self-respect, which enables him not to be inclined to temptations that limit his his practices of professional skepticism. 𝐘𝟏𝟎 the availability of evidence indicating the integrity and honesty of management does not exempt the auditor from practicing professional skepticism. 𝐘𝟓 the availability of evidence indicating the integrity and honesty of management does not exempt the auditor from practicing professional skepticism. 𝐘𝟏𝟏 the critical evaluation of evidence requires the auditor not to accept any unconvincing audit evidence for use. 𝐘𝟔 the critical evaluation of evidence requires the auditor not to accept any unconvincing audit evidence for use. 𝐘𝟏𝟐 source: prepared by the two researchers in order to find out the answers to the sample trends for each paragraph of the questionnaire form, the ratios, frequencies, arithmetic means, and standard deviations were used, as well as the results presented in tables no. (2) and (3). the research sample answers to the questionnaire paragraphs were used as follows: american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 58 www.americanjournal.org table (4) frequencies of the sample’s answers, the arithmetic mean, standard deviations, and the degree of agreement with the paragraphs of the first axis (the role of training and scientific qualification of the external auditor when auditing fair value estimates) source: the preparation of the two researchers based on the results of the program spss. from table (4), we note that most of the answers of the research sample were distributed between two options (strongly agree, agree) in large numbers and percentages. checking the fair value estimates) all of them are based on the arithmetic mean based on the sample size (70) greater than (4), most of them except for paragraphs x_2 and x_5, and the arithmetic mean for the first axis was (4.28) and a standard deviation (0.36), and this indicates the agreement of the research sample and agreement their opinions on the importance of the paragraphs of this axis, and it is clear from table (4) that the third main factor of the first axis (the explanatory variable (independent)) (the importance of training and scientific qualification of the external auditor when auditing fair value estimates) one paragraph (x1) guarantees that there is an understanding of the activity the economic unit, training and experience reflect positively on the quality of the professional judgments issued by the external auditor) and it has a relative importance with a value of (0.941) and it can be called a factor (the level of accumulated experience of the external auditor to issue professional judgments in my work the results of the descriptive statistics for the second axis (the effectiveness of professional skepticism) were as follows: degree of approval standa rd deviat ion ari th me tic me an the answers paragrap h symbol n do not agree agree at all not agree neutral agree strongly agree 1 2 3 4 5 % s % s % s % s % s strongly agree 0.49 4.60 0 0 0 0 0 0 40.0 28 60.0 42 x1 1 agree 0.78 4.03 0 0 2.9 2 20.0 14 48.6 34 28.6 20 x2 2 strongly agree 0.65 4.26 0 0 0 0 11.4 8 51.4 36 37.1 26 x3 3 strongly agree 0.64 4.36 0 0 0 0 8.6 6 47.1 33 44.3 31 x4 4 agree 0.75 4.14 0 0 0 0 21.4 15 42.9 30 35.7 25 x5 5 strongly agree 0.53 4.33 0 0 0 0 2.9 2 61.4 43 35.7 25 x6 6 strongly agree 0.64 4.27 0 0 0 0 10.0 7 52.9 37 37.1 26 x7 7 strongly agree 0.36 4.28 the arithmetic mean and standard deviation of the first axis american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 59 www.americanjournal.org table (5) frequencies of the sample’s answers, the arithmetic mean, standard deviations, and the degree of agreement for the paragraphs of the second axis (the effectiveness of professional skepticism) . .source: the preparation of the two researchers based on the results of the program spss. it is clear from table (5) that the first main factor for the second axis (the effectiveness of professional skepticism) included two paragraphs ((y4, y3). paragraph y2 showed (that the auditor is always ready to discover new knowledge because he is practicing interrogation of the mind and has an open mind). (0.790), while the second paragraph y3 (enhances the search for knowledge feature by giving clear perceptions of the factors that help in evaluating evidence of evidence according to a realistic and accurate perspective) with a value of (0.777), and paragraph y7 indicated (the auditor is required to take into account the psychological and personal dimensions when dealing with the customer.) the greatest relative importance with a value of (0.752), while the second paragraph was y11 (the auditor’s competence, knowledge, and technical qualifications degree of approval standard deviation arithmeti c mean the answers paragrap h symbol n do not agree agree at all not agree neutral agree strongly agree 1 2 3 4 5 % s % s % s % s % s agree 0.61 4.16 0 0 0 0 11. 4 8 61.4 43 27. 1 19 x1 1 strongly agree 0.56 4.21 0 0 0 0 7.1 5 64.3 45 28. 6 20 x2 2 agree 0.64 4.14 0 0 0 0 14. 3 10 57.1 40 28. 6 20 x3 3 agree 0.83 4.06 1.4 1 2.9 2 14. 3 10 51.4 36 30. 0 21 x4 4 strongly agree 1.06 4.26 5.7 4 1.4 1 7.1 5 32.9 23 52. 9 37 x5 5 agree 0.54 4.13 0 0 0 0 8.6 6 70.0 49 21. 4 15 x6 6 agree 1.03 3.74 4.3 3 8.6 6 17. 1 12 48.6 34 21. 4 15 x7 7 agree 0.79 3.99 0 0 4.3 3 18. 6 13 51.4 36 25. 7 18 y8 8 strongly agree 0.70 4.29 0 0 0 0 14. 3 10 42.9 30 42. 9 30 y9 9 strongly agree 0.62 4.40 0 0 0 0 7.1 5 45.7 32 47. 1 33 y10 10 strongly agree 0.58 4.31 0 0 0 0 5.7 4 57.1 40 37. 1 26 y11 11 strongly agree 0.65 4.41 0 0 1.4 1 4.3 3 45.7 32 48. 6 34 y12 12 agree 0.40 4.18 the arithmetic mean and standard deviation of the second axis american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 60 www.americanjournal.org enable him to avoid any behavior of the customer that is believed to affect the professional suspicion practiced by the auditor) with a value of (0.609), while the third paragraph is y6 (the critical evaluation of the evidence requires the auditor not to accept any audit evidence that is not convincing for use (it showed the least relative importance in the second main factor of the second axis (the dependent variable) with a value of (0.594). 7-based on the results shown in the previous tables, the following is clear: there is a significant correlation between (the importance of knowledge of the external auditor when auditing fair value estimates) x and (the effectiveness of professional skepticism) y. there is a significant effect relationship between (the importance of knowledge of the external auditor when auditing fair value estimates) x and (the effectiveness of professional skepticism) y. 8results 1) the basis for the external auditor to be aware of the impact of fair value estimates is to possess technical training, scientific qualification, and sufficient understanding of the activity of the economic unit. 2) the effectiveness of the professional skepticism of the external auditor is affected by the auditor's knowledge of the impact of fair value estimates. 3) low level of expertise and sufficient skill of the external auditor in auditing fair value estimates in light of the multiplicity of measurement methods and their reliance on personal judgment. 4) the importance of the external auditor choosing appropriate evidence related to the fair value estimates, which stimulates the effectiveness of his professional skepticism and his issuance of professional judgments. 5) the need to hold training courses to reduce the challenges and difficulties faced by auditors when auditing fair value estimates in the iraqi environment for the purpose of improving their practices of professional doubt about those estimates. 6) possibility of conducting more studies that provide an additional explanation of the effects of auditors' commitment in the iraqi environment to practice professional skepticism effectively while auditing management's fair value assumptions. 7) the auditor's skill and knowledge of the rationale for fair value estimations help him in solving the fundamental problems in the audit and is reflected in improving the auditor's professional skepticism practices. 8) the results of the statistical analysis showed that most of the respondents agree that acquiring specialized knowledge of the auditor contributes to enhancing the auditor's performance. references 1(2020), bringing the latest insights q2 2020 updated special edition on the impacts of the coronavirus disease (covid 19), june. 2shanteau ,j. & abdolmohammadi, m. j., ‘personal attributes of expert auditors’, organizational behavior and human decision processes, vol. 53, no. 2 : 1992. 3bell, t. b., marrs, f. o., solomon, i. & thomas, auditing organizations through a strategic systems lens, montvale, nj: kpmg llp : 1997 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 61 www.americanjournal.org 4dwirandra, aanb & i ketut suryanawa. (2018). idealism and professional commitments mediation the effect of work experience and training on ethical decision making of tax consultan. research journal of finance and accounting. 9(21), pp. 85.94 5ester g, marin-hernandez s, garcia-perez de lema d (2012). internal audit and financial reporting in the spanish banking industry. managerial auditing journal pp.728-753. 6grffith , emilly e/ christine j. nolder/ richard e. petty "the elaboration like lahood model " ameta – theory for synthesizing auditor judgment and decision-making research " american accounting association , avditing :ajournal of practice & theor , vol . no.4 :2018 7hamza, t. and mselmi, n. (2017), corporate governance and equity prices: the effect of board of directors and audit committee independence, management international, 16, 152-164. 8herliansyah, y., & ilyas, m. (2006). pengaruh pengalaman auditor terhadap penggunaan bukti tidak relevan dalam auditor judgment. sna 9 padang, 23-26. 9kaplan, s. e., et al., 2008, “the influence of auditor experience on the persuasiveness of information provided by management”, auditing: a journal of practice & theory, vol.27, no.1, p 72. 3 hudiwinarsih, g., op.cit., p. 852. 10krishnamoorthy g (2000). a cascade inference model for evaluation of the internal audit report. decision sciences 32(3):499-520. 11 mcknight, c. & wright, w., ‘characteristics of relatively high-performance auditors’, auditing: a journal of practice and theory, vol. 30 : 2011. 12moroney, r., & carey, p. (2007). industry-versus task-based experience and auditor performance. auditing: a journal of practice & theory, 30(2), 1-18. 13o’donnell, e. & schultz, j ‘the halo effect in business risk audits: can strategic risk assessment bias auditor judgment about accounting details?’, the accounting review, vol. 80, no. 3, :2005. 14pcaob release no. 2018-005 december 20, 2018. 15 rodgers, w., mubako, n., and hall, l., (2017). knowledge management: the effect of knowledge transfer on professional skepticism in audit engagement planning. computers in human behavior, vol. 70, pp. 564-574. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 84 www.americanjournal.org brand experience and customer behavioural intentions in inter-state branded transport companies uboegbulam, gideon chukwunwem (ph.d) inemesit richard akpakpan department of hospitality management and tourism university of port harcourt correspondence e-mail: gideon.uboegbulam@uniport.edu.ng cellphone: 08036665762 orcid id: https://orcid.org/0000-0001-6127-5866 a b s t r a c t k e y w o r d s the main purpose of this study was to investigate the relationship between brand experience and passenger’s behavioral intention. the study adopted a cross-sectional survey and 120 passengers of inter-state branded companies were the target population. the data was generated through a primary source and a closed ended questionnaire of five-point likert scale was administered to respondent. the study hypotheses were analyzed pearson’s product moment with the aid of statistical package for social sciences (spss). the finding of the study revealed that, there is a strong and positive relationship between brand experience dimensions (safety, comfort, driver’s competence, travel time and vehicle cleanliness) with passengers’ behavioral intention. the study recommended that transport should make sure that they provide comfortable seats, screens and well airconditioned vehicles to make the vehicle comfortable tor travelers. again, that drivers should be well trained and must have a good geographical command. brand experience, comfort, passengers behavioral intention, travel time, driver competence introduction the task of attracting consumers’ attention is challenging and so organizations should reconsider their strategies, especially their marketing strategies, for a number of reasons. one reason is the growing number of brands and increasing competition among enterprises. the dynamic, global business environment drives companies to constantly seek competitive advantage through the development of innovative products, services, and systems. underlining the importance of “technology push” and “market/demand pull”, a company´s ultimate aim is to develop revolutionary products and services (brem & voigt, 2009). therefore, understanding user behavior, use, and shortcomings of products and services is essential to discover and create “value opportunities” (ideo, 2009). one of the most important topics mentioned by researchers is related to brand experience when interacting with a particular brand. koetz (2019) pointed out the need to improve brand experience and reward loyalty american journal of business management, economics and banking volume 10 march, 2023 p a g e | 85 www.americanjournal.org because they work to increase passengers purchase intention and loyalty. by understanding consumers, companies can manage their brand communication strategies in a way that engages consumers the best. therefore, from the marketing perspective, “understanding consumer behavior is good business” (solomon et al., 2010). as many scholars (amine, 1998; dick & basu, 1994; aaker, 1991) state, a positive attitude towards a brand is a necessity in creating brand attachment. attitude and emotions towards the brand are important, because emotions have been recently recognized as having the most effect in predicting consumer behavior (johnson & greyson, 2005). these attitudes and the overall perceived brand image are affected by the consumer’s brand experience. when it comes to review of a brand, making promises about a service or product is not enough; the brand promise must consistently be delivered when experiencing the service. in the transportation industry where services are almost identical and every of them competing on the same front, the need to be distinguished becomes very paramount because on each passing day, passengers are are becoming more service enlightened and sophisticated in their demand and are only set to pitch their tent to companies that gives them more than the expected service. more so, the multiplicity of choice available to passengers is forcing transport requires that transport companies should start thinking out of the box on how to improve passengers experience so as to cash in brand confusion of passengers 1.3 aims and objectives the main aim of this study is to inquire how brand experience dimensions e,g passengers safety, vehicle cleanliness, passengers comfort, drivers competence and traveling time factor peculiar to transportation service providers influences passengers behavioral intentions. h01: passengers safety have no relationship with passenger’s behavioral intention h02: vehicle cleanliness have no relationship with passenger’s behavioral intention h03: passengers comfort have no relationship with passenger’s behavioral intention h04: driver’s competence have no relationship with passenger’s behavioral intention h05: travel time factor have no relationship with passenger’s behavioral intention 2. literature review 2.1 brand experience brand experience has been defined from numerous perspectives. verhoef et al. (2009) indicated that brand experience is a multidimensional construct built on a customer’s physical, social, cognitive, and affective states, which steams from the customer’s attitudinal disposition towards the service provider. berry et al. (2002) expressed brand experience with pointers to clues sent from an organization to its customers. brakus et al. (2009) identified four cases in which consumer experience of goods and services occurs: searching for products, shopping for products, receiving services, and consuming products or services. from the above definition, the current study defined brand experience in the transportation service sector as the attitudinal investment towards the service received as against service expected. in fact, some brand experts relates brand experience to be how satisfied a customer is with a service encounter and the reaction of such experience to either want to continue with the brand or not. this implies that, passengers develop various degrees of attachment or dislike towards the services received and to american journal of business management, economics and banking volume 10 march, 2023 p a g e | 86 www.americanjournal.org extension, the personnel who are directly involved in delivering transportation services. there has been numerous brand experience conceptualization models. e.g, verhoef et al. (2009), generation of brand experience were social, service encounter, convenience, cost, and previous experience. brakus et al. (2009) mentioned direct and indirect experience as two basic kinds of product experience in the shopping service. direct product experience is related to physical interaction between the customer and the product, while indirect product experience is embedded in virtual or advertised products. hosany and witham (2010) explored the dimensions of tourists’ experience and found that it consists of four major dimensions: education, entertainment, escapism, and aesthetics. in their scale developed to measure brand experience. in the dining industry, dimensions of customer experience can be understood through restaurant attributes such as food quality, brand experience, restaurant atmosphere, and price fairness (liu & jang, 2009). the different views, models and construct of brand experience implies that experience is relative and can differ from industry to industry, sector to sector. as related to the transportation industry, passengers want enjoy their trip. hence the model of transport experience as suggested by etuk et al (2021) becomes very germane and they are; 2.2 safety: in the context of transportation services, nyongesa and bwisa (2014) defined passengers’ safety as the condition where passengers are protected from harm, injury, risk or other dangers at the service providers’ facilities and during transportation to their final destinations. this definition entails that safety in the context of transportation encompasses the personal safety of passengers and their luggage at the facilities of transportation companies and the safety of passengers including their luggage during conveyance to their preferred destinations. passengers prioritize their safety and that of their luggage when choosing transportation service providers regardless of means of transportation (nafiu, hassan & alogwuja, 2018). 2.3 passenger’s comfort: in the context of transportation service, passengers’ comfort is the degree to which passengers are comfortable with the seats, travel experience, vehicle temperature and other experiential components of companies while in transit (njeru, cheruiyot & maru, 2019). it is the state in which passengers are relaxed, free of pain, distress, physical or psychological stress when being conveyed by a transportation company to their preferred locations. travel comfort is an indispensable factor considered by the majority of potential passengers before patronizing a transportation company (julius & jatmika, 2019). in fact, it is in the search for travel comfort, among other benefits, that most passengers prefer to travel by air to other distressing means of transportation such as road, rail and sea in most parts of africa. 2.4 drivers’ competence: drivers’ competence is the level of proficiency and expertise of transportation companies’ drivers from origin to passengers’ final destination (nyongesa & bwisa, 2014). a driver’s competence encompasses his driving skills, length of driving experience and knowledge of travel routes, because only when a driver possesses these minimum capabilities will such a driver be considered competent (pawlasova, 2015). divers’ competence is essentially important in transportation services because it defines passengers’ overall perception of the quality of service offered by transportation companies. as such, transportation companies with more competent and efficient drivers tend to enjoy more passengers’ patronage and retention than those without competent american journal of business management, economics and banking volume 10 march, 2023 p a g e | 87 www.americanjournal.org drivers. this is so because an incompetent driver conveying passengers to their destinations will be incapable of guaranteeing passengers’ safety and comfort during the transportation process, thereby leading to passengers’ dissatisfaction (budiono, 2009). 2.5 travel time: travel time is the time it takes for transportation companies to move passengers from source location to their final destinations (ojo, et al, 2014). it is the amount of time that it takes a transportation service company to schedule passengers, and convey them to their preferred destinations through their transportation networks. travel time also has to do with punctuality of transportation service delivery (noor & foo, 2014). it is taking passengers to where they need to go at the promised stipulated time without human or technical delays. transportation service companies can improve their travel time by ensuring that journeys are scheduled and communicated to passengers in time; passengers and their luggage are processed for conveyance without delay; transportation vehicles are reliable and have adequate spare parts; and drivers follow designated routes with minimal expected time of delivery (saw, et al, 2020). 2.6 vehicle cleanliness: cleanliness of a vehicle is the degree of cleanliness of the exterior and interior sides of a transportation company’s vehicle (singh, 2016). it encompasses the degree of cleanliness of the interior as well as the exterior of a transportation vehicle, including the smell or fragrance prevailing within it. vehicle cleanliness is an essential factor in passengers’ patronage decision towards transportation service companies, because it contributes to passengers’ comfort (fonseca, pinto & brito, 2010). a vehicle with clean interior and exterior coupled with sweet scenting interior fragrance enables passengers to relax and be calm during conveyance to their preferred destinations. as such, transportation companies around the world are rapidly taking steps to improve the cleanliness of their vehicles (van-lierop & el‐geneidy 2016). interior vehicle waste disposal mechanisms are applied to ensure the neatness of vehicle interior; designated vehicle washers are hired to keep transportation vehicles clean before and after the journey; special car fresheners or fragrances are sprayed in transportation vehicles to eliminate bad smell and air-conditioning systems fitted with sweet fragrances are fixed in cars to improve interior smell of cars so as to enhance passengers’ experience. passengers behavioral intention walters (1974) defines passenger behavior as: " the process whereby passengers decide whether, what, when, where, how, and which transport company to services to engage" mowen (1993) provides a different definition by explaining passenger behavior as: the study of the buying units and the exchange processes involved in acquiring, consuming, and disposing of goods, services, experiences, and ideas". this definition focuses on engaging transport company’s services in an attempt to include not only a passenger but also other users that patronize transport services. schiffman & kanuk (1997) defined passenger behavior as: "the behaviour that passengers display in searching for, purchasing, using, evaluating, and disposing of a transportation company’s services, and ideas." schiffman & kanuk (1997) elaborate on the definition by explaining that passenger behavior is, therefore, the study of how passengers make decisions to spend their available resources (time, money, effort) on transportation consumption-related items. it includes the study of what, why, when, where and how often they use the service. passenger behavior is seen to involve a complicated mental process as well as physical activity (purchase decision). passenger behavior reflects the totality of american journal of business management, economics and banking volume 10 march, 2023 p a g e | 88 www.americanjournal.org passengers‟ decisions with respect to the acquisition, consumption and disposition off goods, services, time and ideas by (human) decision making units 3. empirical review safety and passenges behavior: saw, dissanayake, ali and bentotage (2020) conducted a study on transportation service expereince and passengers loyalty which sampled 320 respondents from different transport companies found service experrince enablers such as security, safety, comfort, infrastructure quality and ticket purchase facilities have significant and positive relationship with passengers behavioral intention. etuket al (2021) conducted a study on brand experience and passengers’ loyalty of public transportation companies. the study adopted cross-sectional survey research design. primary data were obtained from 228 passengers of public road transportation companies using an adapted structured questionnaire. data analysis was done using descriptive statistics while multiple linear regression was adopted to test the hypotheses of the study with the aid of the statistical package for the social sciences (spss 23) software. the findings of the study revealed that passengers’ safety, had significant positive effects on passengers behaviorial intention of public transportation companies. dissanayake, ali and bentotage in (2020), their revealed that passenger patronage was significantly influenced by security and safety. also a study by nyongesa and bwisa (2014), revealed that passengers’ security significantly and positively influenced passenger post behavioral intention in terms of repurchase, willingness to recommend and loyalty in the public transport sector of kenya. passenger’s comfort and behavioral intention: oluwaseyi and olaniyi (2018) conducted a study on the assessment of passengers experience and satisfaction of public transport system in akure-owo in nigeria. twelve service buses wee identified and study was done with questionnaire and field observation to collect required data. 112 participated travel time driver’s competence comfort b ra n d e xp er ie n ce vehicle cleanlines safety passengers behavioral intention american journal of business management, economics and banking volume 10 march, 2023 p a g e | 89 www.americanjournal.org in the study and analysis was conducted using gap analysis. the findings revealed that comfort is a very important item in the choice of a transport service to patronize. nwachukwu (2014) considered comfort, service accessibility, drivers’ efficiency and bus stop facilities as dimensions to transportation experience and the study found passengers comfort comfort significantly rooted in customers attitude towards transportation firms. (ojo, mireku, dauda & nutsogbodo, 2014) in their findings stated that most passengers are basically not only concerned with being conveyed to their destinations safely and promptly; but also, the comfortability of the transportation experience is equally an indispensable measure of passengers’ overall satisfaction (ojo, mireku, dauda & nutsogbodo, 2014). driver’s competence nafiu, hassan and alogwuja (2018) did a study on aervice quality and passengers loyalty. the variables considered by the study were drivers’safety (drivers’ competence), fare level and comfortability. the findings of that study show that competence had significant relationships with passengers’ perceived satisfaction and reactions. study by nwachukwu (2014) also revealed that drivers’ efficiency had a significant impact on overall satisfaction of passengers with intra-city public bus transport services in abuja. similarly, the viewpoints are substantiated by the study of wang, zhang, zhu and wang (2020), which revealed that drivers’ safety had a significant positive effect on passengers’ satisfaction and loyalty. travel time and passenger’s behavioral intention tam and lam (2011) did a study on the impact of travel time safety and perceived passengers purchase intention. the study adopted cross-sectional survey reearch design of which 130 passangers was determined using taro yamen sample size determination. the data was analyzed using infrenstial statistics and structural equation modeling. the findings of the study revealed that travel time is very important to passengers. passengers want their buses to depart at a promised time and when delay becomes noted, it affects their perception and attitude negatively towards the firm. this scholarly assertion is corroborated by the study of nyongesa and bwisa (2014), which revealed that travel time punctuality significantly and positively influenced passenger satisfaction in the public transport sector of kenya. the assertion is also supported by the study of budiono (2009), which revealed that travel time was significantly and positively correlated with overall passenger patronage of public bus transportation services in jakarta. similarly, the foregoing assertion corresponds with the study of fonseca, pinto and brito (2010), which revealed that travel time (speed and punctuality) had a significant influence on passengers’ patronage of public transport services vehicle cleanliness and behavioral intention van-lierop and elgeneidy (2016) study considered the impact of physical appeal of transportation vehicles on passengers intention to patronize. the findings of the study showed that most passengers are conscious of the physical conditions and how clean the vehicles are before engaging in patronage. this entails that vehicle cleanliness, as a dimension of road transportation brand experience, can significantly affect passengers’ satisfaction and loyalty. this premise is supported by the study of singh (2016), which revealed that vehicle cleanliness (clean environment inside buses) had a significant positive impact on overall passenger behavior towards public transportation services in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 90 www.americanjournal.org lucknow city. the premise is also substantiated by the study of pawlasova (2015), which revealed that vehicle cleanliness significantly influenced passengers´ satisfaction with public city transport in the czech republic. similarly, the premise is corroborated by the study of wang, zhang, zhu and wang (2020), which revealed that vehicle cleanness had a significant positive effect on passengers’ behaviors in terms of satisfaction and re-use intention. research methodology the cross-sectional survey research design was used in this study and passengers of akwa ibom transport companies were the target population of the study. a simple random sample method was used to obtain around 120 respondents, who represented the study's attainable respondents. the number of customers to be sampled was determined using the freund and williams formula for sample size calculation in an unknown population. following that, 120 copies of a closed ended questionnaire structured on a five point likert scale were gathered for data analysis. the factors were assessed using five items on a five-point likert-like scale ranging from five to one, as follows: 5 indicates strongly agreement, 4 indicates agreement, 3 indicates undecided, 2 indicates disagree, and 1 indicates strongly disagree. face and construct validity were used to determine the instrument's validity, while the cronbach alpha test revealed acceptable reliability values of 0.767 for safety, 791 for comfort, 754 for driver's competence, 768 for travel time, and 776 for vehicle cleanliness. with the help of spss version 20.0, the null hypotheses were tested using pearson's product moment correlation (ppmc). 4. test of hypotheses and discussion of findings ho1 there is no significant relationship between safety and passengers behavioural intention ha1: there is significant relationship between safety and passengers behavioural intention the pearson correlation coefficient is 0.883, and the p. value (2-tailed) is 0.000, as seen in the above result we reject the null hypothesis and accept the alternative hypothesis since the p-value of 0.000 is less than 0.05. this suggests that safety and passengers behavioural intention have a considerable link. the coefficient of determination (r2 = 0.8) suggests that the dependability of the service provided accounts for 80% of passengers behavioural intention. a substantial link is revealed by the significant safety passengers behavioural intention safety pearson correlation 1.000 .883** sig. (2tailed) . .001 n 120 120 passengers behavioural intention pearson correlation .883** 1.000 sig. (2-tailed) .001 . n 120 120 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 91 www.americanjournal.org value of 0.000 (p0.05). based on that, the null hypothesis was rejected. this finding agrees with the findings of wael (2015) whose study showed a direct significant impact of safety on passengers behavioural intention. ho2 there is no significant relationship between comfort and passengers behavioural intention ha2: there is significant relationship between comfort and passengers behavioural intention the pearson correlation coefficient is 0.807, and the p value (2-tailed) is 0.000, as seen in the above result. we reject the null hypothesis and accept the alternate hypothesis since the p-value of 0.000 is less than 0.05. this suggests that comfort and passengers behavioral intention are linked in some way. according to the coefficient of determination (r2 = 0.65), comfort of service providers accounts for 65 percent of passengers purchase intention. a substantial link is revealed by the significance value of 0.000 (p 0.05). based on that, the null hypothesis was rejected. this finding agrees with the findings of wael (2015) whose study showed a direct significant impact of comfort on passengers purchase intention. the findings are similarly consistent with those of miklós, hossam, jános, józsef, and judit (2019), who discovered that dependability, is an excellent predictor of passengers behavioural intention in their study. ho3. there is no significant relationship between travel time and passengers behavioural intention ha3. there is significant relationship between travel time and passengers behavioural intention. correlations comfort passengers behavioural intention comfort pearson correlation 1 .807** sig. (2-tailed) .000 n 120 120 passengers behavioural intention pearson correlation .807** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 0.01 level (2-tailed). correlations travel time passengers purchase intention travel time pearson correlation 1 .540** sig. (2-tailed) .000 n 120 120 passengers purchase intention. pearson correlation .540** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 22220.01 level (2-tailed). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 92 www.americanjournal.org from the result above, pearson correlation co-efficient is 0.291 while p. value (2-tailed) is 0.000. since p-value of 0.000 is less than 0.05, we therefore reject the null hypothesis and accept the alternative hypothesis. this implies that there is weak relationship between travel time and passengers behavioural intention. the coefficient of determination (r2 = 0.29) indicates that 29% of passengers behavioural intention can be explained through travel time from service providers. the results of hypothesis two contradicted those of ehigie (2018), who claimed in his thesis that there is a substantial relationship between travel time and customer happiness. it also contradicted the findings of vencataya, pudaruth, juwaheer, and dirpal (2019), who found that travel time, is an important predictor of customer happiness. ho4 there is no significant relationship between driver's competence and passengers behavioural intention ha3 there is significant relationship between driver's competence and passengers behavioural intention the pearson correlation coefficient is 0.789, and the p value (2-tailed) is 0.000, as seen in the above result. we reject the null hypothesis and accept the alternate hypothesis since the p-value of 0.000 is less than 0.05. this suggests that driver's competence and passengers behavioral intention have a strong link. service driver's competence is responsible for 62 percent of passengers behavioral intention, according to the coefficient of determination (r2 = 0.65). there is a significant link when the significant value is 0.000 (p 0.05). this conclusion is consistent with khan, mubbsher munawar; fasih, mariam (2014), who discovered that driver's competence and other brand experience aspects had a direct influence on passengers behavioural intention.. ho5. there is no significant relationship between vehicle cleanliness and passengers behavioural intention correlations driver's competence passengers behavioural intention driver's competence pearson correlation 1 .789** sig. (2-tailed) .000 n 120 120 passengers behavioural intention pearson correlation .789** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 93 www.americanjournal.org ha5. there is significant relationship between travel time and passengers behavioural intention. from the result above, pearson correlation co-efficient is 0.291 while p. value (2-tailed) is 0.000. since p-value of 0.000 is less than 0.05, we therefore reject the null hypothesis and accept the alternative hypothesis. this implies that there is significant relationship between vehicle cleanliness and passengers behavioural intention. the coefficient of determination (r2 = 0.67) implies that 67 percent of passengers behavioural intention may be explained by vehicle cleanliness (service atmosphere and personnel appearance) (service environment and staff appearance). this conclusion corresponds with the findings of wael (2015) whose study indicated a direct substantial influence of comfort on passengers behavioural intention. conclusion and recommendation this study evaluated the relationship between brand experience and passengers behavioural intention of interstate branded transport companies. the study through the various reviewed literatures understood that travellers want good travelling experience and are willing to patronize, advertise and get committed to transport companies that offers them a memorable travelling experience. these experiences they have come to agree are domiciled in how safe they and their luggage arrive their destination, how comfortable the they motor, the drivers’ competence and interactions during travel, getting to their destination at the promised time and making sure vehicle is in clean both in and out, and there are no mechanical, electrical faults associated with the vehicle. conclusively, the study opined that to ensue positive behavioural passengers intention, transport companies must provide the passengers with a memorable travel experience recommendations from the findings above and having considered the study concluding remarks, the following recommendations are made to interstate transport companies for better service delivery i. they should ensure that the safety of their passengers and their luggage is top priority ii. they should make sure that they provide comfortable seats, screens and well air-conditioned vehicles to make the vehicle comfortable tor travellers iii. their drivers should be well trained and must have a good geographical command of the area he is traveling to and also must not be rude to passengers while on transit correlations vehicle cleanliness passengers behavioural intention. vehicle cleanliness pearson correlation 1 .291** sig. (2-tailed) .000 n 120 120 passengers behavioural intention. pearson correlation .291** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 22220.01 level (2-tailed). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 94 www.americanjournal.org iv. they should maintain their vehicles properly and service them as at when due references 1. aaker, j. l (1997). dimensions of brand personality. journal of marketing research. 34 (3), pp. 347356. 2. amine, a. (1998). consumers' true brand loyalty: the central role of brand loyalty. journal of strategic marketing 6(4), 305-319 3. brakus, j. j., schmitt, b. h., & zarantonello, l. (2009). brand experience: what is it? how is it measured? does it affect loyalty? journal of marketing, 73(3), 52–68. 4. brem, a., voigt, k.i. (2009). integration of market pull and technology push in the corporate front end and innovation management—insights from the german software industry. technovation. 29 (5), pp. 352-367 5. budiono, o. (2009). customer satisfaction in public bus transport: a study of travelers' perception in indonesia (an m.sc. thesis, karlstad university). 6. dick, a., & basu, k. (1994). customer loyalty: toward an integrated conceptual framework. journal of the academy of marketing science, 22(2), 99-113 7. fonseca, f., pinto, s., & brito, c. (2010). service quality and customer satisfaction in public transports. international journal for quality research, 4(2), 125-130 8. hosany, s., & witham, m. (2010). dimensions of cruisers’ experiences, satisfaction, and intention to recommend. journal of travel research, 49(3), 351–364. 9. ideo (2009). human centered design toolkit, (2nd ed.) available: http://www.ideo.com/work/hu man-centered-design-toolkit. last accessed 21th january 2023 10. johnson, d., & grayson, k. (2005). johnson cognitive and affective trust in service relationships. journal of business research, 58(4), 500-507 11. julius, d. n. & jatmika, d. (2019). the role of service quality on loyalty among low cost carrier consumers. jurnal psibernetika, 12(1), 39-43 12. koetz, c. (2019). managing the customer experience: a beauty retailer deploys all tactics. journal of business strategy, 40(1), 10–17. 13. liu, y., & jang, s. s. (2009). perceptions of chinese restaurants in the us: what affects customer satisfaction and behavioral intentions? international journal of hospitality management, 28(3), 338–348. 14. nafiu, a. t., hassan, o. m., & alogwuja, u. c. 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(2014). service quality and customer satisfaction in public transport sector of kenya: a survey of shuttle travelers in kitale terminus. international journal of academic research in business and social sciences, 4(9), 402-412 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 95 www.americanjournal.org 19. ojo, t. k., mireku, d. o., dauda, s., & nutsogbodo, r. y. (2014). service quality and customer satisfaction of public transport on cape coast-accra route, ghana. developing country studies, 4(18), 142-149. 20. pawlasova, p. (2015). the factors influencing satisfaction with public city transport: a structural equation modelling approach. journal of competitiveness, 7(4), 18–32. 21. saw, y. q., dissanayake, d., ali, f., & bentotage, t. (2020). passenger satisfaction towards metro infrastructures, facilities and services. transportation research procedia, 48, 3980–3995. 22. schiffman, l., kanuk, l., & hansen, h. (2012). consumer behaviour. a european outlook, 2nd ed. essex: pearson education limited. 23. schmitt, b. (1999). experiential marketing; how to get customers to sense, feel, think, act and relate to your company and brands. free press. 24. singh, s. (2016). assessment of passenger satisfaction with public bus transport services: a case study of lucknow city (india). studies in business & economics, 11(3), 107-128 25. solomon, m., bamossy, g., askegaard, s., & hogg, m. (2010). consumer behaviour, a european perspective, 4th ed. london: pearson education. 26. van-lierop, d., & el‐geneidy a. (2016). enjoying loyalty: the relationship between service quality, customer satisfaction, and behavioral intentions in public transit. research in transportation economics, 59, 50‐59. 27. verhoef, p. c., lemon, k. n., parasuraman, a., roggeveen, a., tsiros, m., & schlesinger, l. a. 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(2020). the impact of service quality and customer satisfaction on re-use intention in urban rail transit in tianjin, china. sage open, 10(1), 1-10. american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 166 www.americanjournal.org measures implemented in the industry of the surkhandarya oasis and their contribution to the development of the industry (in the years of independence) muzrabov yorqinjon to’xtamurot o’g’li graduate student of terdu a b s t r a c t k e y w o r d s the purpose of this article is to scientifically and historically illuminate the essence of the policy of the government of the republic of uzbekistan aimed at establishing world-class industrial enterprises in the surkhandarya oasis during the years of independence. light industry, heavy industry, cotton ginning points, yarn spinning. as uzbekistan gained independence, as in all sectors, there were fundamental changes in the industry. as a result of difficulties in the transition period in the surkhandarya region, production of products in some areas decreased, while others stopped working. the role of the non-governmental sector in product production began to appear. for example, 92% of industrial output produced in 1999 was produced in the non-governmental sector, compared with almost 100% by 2010. existing industrial enterprises began to be equipped with modern machinery. as a result, production capacity increased by one and a half to two times, re-equipping such enterprises as the jarkogon yarn collection and training factory and the shoorchi flour combination with foreign modern equipment. in 1994, it produced 131.6,000 tons of tomatoes and 6723,000 tons of tomatoes and benefited 11 million gallons [11 million l], an increase of 11 times in 1993. experts from the regional plumbing plant industry have launched the equipment of plumbing plants in the districts with new equipment to further improve the quality of the tomatoes being prepared. in the plumbing plants of denov, shoorchi, hayrabad and jarkogon, they installed special equipment that wet the tomatoes in order to improve the cooking of the tomatoes and its severance. as a result, the cooking of prepared fiber in factories was increased, and itsbreakdown decreased by twenty percent. regional plumbing plants have introduced production based on new modern technologies, and a workshop has been installed at the angor plumbing plant that produces incorrect materials. the output was 90 centimeters wide and 180 centimeters tall. instead of 2.5,000, the plant produced 6,000 feet [6,000 m] of inappropriate materials and sold to consumers. even waste is recycled and ready, and because of the start of production, between 50 and 60 tons of more mommy were produced each month than planned because a tonne of mommy costs $5,000 on the world market. in 1993, new plumbing plants were also built and launched in the surkhandarya region. for example , the team of the builder2 congregation in jarkogon commissioned the use of 30,000 tons of tomatoes a year by equipping american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 167 www.americanjournal.org kumkogon plumbing with modern serum machines. during the transition to a poor economy, industrial enterprises, several factories, and factories in the province of surxondary searched for ways to save electricity as electricity costs increased. as a result of such enterprises, until 1993, the thermal plumbing plant used dozens of electric motors with a capacity of 100 square feet [100 sq m], which were replaced by 55-70 square miles [55 to 70 sq km] of engines in 1993. in 1993, ten of the previous twenty-seven machines in the cleaning shop were used to save millions of gallons [450 sq m] of electricity to produce a ton of tomatoes. generally speaking, there have been significant changes in the mining industry in the valley. a company that produces 50,000 tons of salt per year at the hojaikon salt mine, a new line with the capacity to produce 10,000 tons of soap per year has been launched at the denov oil-extraction plant. currently, there are 44 of the 49 ruined joint ventures in the region, such as the surxon atlantic, surxontex, and the golden chicken, which were built in conjunction with foreign partners. the joint venture is 800 million. (matthew 24:14; 28:19, 20) in 2012, the joint ventures producing products produced products and services worth 104751.8 million gallons [104751.8 million l]. the regional industry faced various economic challenges in the first years of independence, as in all regions of the republic. as a result, you can show disruptions in the forms (specialization, cooperation) that make up existing production, changes in the management system, and financial difficulties. as a result, the growth rate in industrial production decreased. the lowest product production in industrial sectors in recent years was recorded in 1993 (99%). in previous years, industrial products have been produced based on existing reserves, but this year because of economic difficulties, many businesses have stopped working, some have reduced product production. from 1991 to 1996, the growth rate was lower than in previous years, despite an increase of 5 times in industrial production in the province during this period. statistics show that in 1991 there were 2130.7 million in the province. (matthew 24 :14; 28:19, 20) jehovah's witnesses would be pleased to discuss these protence with you. the region produces about 40 types of industrial products in existing industries. the majority of them are made up of people's consumer products. therefore, the production of consumer products has been increasing year after year. among the industrial sectors, the lightweight and food industry, which specializes in the processing of agricultural products based on product production, has a large stake. for the development of these industrial sectors, labor resources are enough in the province, along with cheap raw materials. the main network of light industry is the plumbing industry. the network provides 47.1% of all regional industrial output and 93.2 percent of medium-sized industrial production. the thermal plumbing plant, built in 1912, considered the first industrial enterprise in the region, belongs to the same network. currently, there are 11 large plumbing plants in the province, and the watchtower, jarkogon, and denov are the largest plumbing plants. in terms of industrial production, between january and december 2020, regional enterprises produced $5 trillion (u.s.) in industrial products, accounting for 113.9% of the physical volume index* of industrial production compared with january-december 2019. industrial production accounted for the largest share of industrial production, accounting for 89.4% of total industrial production. the main factor of the decline in physical volume of total industrial production was the decrease of 20.2% in the mining industry and open deposit processing industry and by 10.3% in water supply, sewerage system, waste collection and utilization. there was also an increase in the production (processing) industry by 18.4% and by 13.3% of the supply of electricity, gas, steam and air conditioning. so the industrial field of voha continues to develop year after year. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 168 www.americanjournal.org available publications 1. archive of the surkhandarya region. 2. internet saytlari. 3. history of azimov m. thermal (from the earliest times to the beginning of the 21st century) nazareth 2001 4. b. rahim. "socio-economic and cultural life of uzbekistan during the years of independence (in the case of surxondary 1991-2005)". american journal of business management, economics and banking issn (e): 2832-8078 volume 3, | aug., 2022 p a g e | 1 www.americanjournal.org neurolinguistic study of verbal communication alpanova shirin associate (phd) andijan state university, department of uzbek linguistics a b s t r a c t k e y w o r d s the article aims to introduce the basic rules and functions of neurolinguistics, the history of this field, specific neurolinguistic research, methodology and scientific paradigms, language and communication, thinking, neurophysiological processes. neurolinguistics, neurology, psychology, neuropsychology, speech agnosia, apraxia, dysarthria,alexia, agraphy, psychotherapy, speech activity, cognitology, communication,consciousness, hemispheres, aphasia introduction the science of neurolinguistics related to the process of speech activity is one of the slowly developing disciplines of applied linguistics in uzbek linguistics today. the teachings of language and thought are its methodological basis. the peculiarity of the applied directions in linguistics is that they are closely related to each other. research cannot be limited to only one area of applied linguistics. the orientation of applied linguistics to the inner world of the language carrier recognizes that every nation, not just a nation, but every individual's linguistic thinking the linguistic landscape of the world is unique.1 “without language, there is no relationship between people. there is no society without attitude, neither is humanity. it is impossible to think without language, that is, to understand the being and the self in it, ”said a.a. reformatskiy.2 the thinking that emerges and develops during a person’s labor activity is a reflection of the being that surrounds him. the inextricable link between language and thinking occurs because of the need for people to engage in productive activities, exchange ideas, and act together. language and thinking cannot exist without each other. thinking is the opposite of an objective being, and language is a way of expressing, reinforcing an idea, and conveying it to others. neurolinguistics is a science that emerged at the intersection of neurology, psychology, and linguistics and studied the language system in relation to the brain substrate of language behavior. neurolinguistics tries to understand how speech is created in everyone’s brain. therefore, neurophysiological theory is combined with linguistic theory. 1 alpanova sh. reflection of mood in the uzbek language. –t .: “akademnashr” .2019. b.8. 2 reformatsky a.a. introduction to linguistics. m .: 1967. p.7. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 2 www.americanjournal.org the study of speech and communication after brain injury is the most common research topic in neurolinguistics. in recent years, phase forms of linguistic behavioral disorders have also become of interest to neurolinguistics: speech agnosia and apraxia, dysarthria, alexia, and agraphy. it is also inextricably linked with neurolinguistics, psycholinguistics, pragmatics, cognitology, psychoanalysis. the research resulted in the development of neurolinguistic programming theory and technology aimed at studying and applying optimization techniques through the speech effects of the cerebral hemispheres, the centers responsible for the mind and subconscious area. this technology is used to mobilize the deep reserves of the brain needed in the psychotherapeutic treatment of mental illness. used when it is necessary to change a person’s behavior in an acceptable direction. neurolinguistic programming is taught in many foreign business schools. the purpose of neurolinguistics is to provide an understanding of the evolving modern science associated with the study of experimental linguistics and its brain procedures. man reflects being in his mind. reflection is done using the sensory organs. the sensory organs transmit certain information about the external world to the brain. the brain generalizes this information. it appears that the process of reflecting the objective world occurs through the central nervous system, the brain.3 man has the ability to reflect in the mind by distinguishing general and specific features of things and events in the material world.4 this process is called an intellectual act. it consists of three phases: planning the activity, implementing it, and comparing the result achieved with the intended goal.5 the tasks that neurolinguistics must perform are as follows: • identify what changes occur in language and communication after various brain injuries; • learn how to develop communication and language skills; • learn how children communicate and use language; • observe and explain brain processes related to language and communication. the most important and fundamental stage in the formation of neurolinguistics is associated with the name of a.r. luria. while dealing with the treatment of soldiers and officers who suffered brain injuries during world war ii, the results of the analysis gathered a vast amount of material that led to the emergence of a new science neurolinguistics. in his opinion, before raising the issue of compatibility of brain injuries with speech pathology, it is necessary to address issues such as the structure of speech activity, communication behavior, the underlying psychological processes. a.r. luria’s neurolinguistic concept is based on three sources: linguistics, psychology, and physiology. the linguistic source goes back to the work of baudouin de courtenay and his students. the basis of baudouin’s concept is that the real problem posed by linguistic research is to shed light on the fact that human beings are human beings with the ability to communicate, not a language separate from them. he admits that "there are people who have a linguistic mindset, not some kind of language that flies in the air." in his view, mental phenomena and the physiological substrate are inseparable. they are present in the living brain, and when the brain "dies" they also disappear. "3. baudouin's ideas were developed by l.v. shcherba. he states the following in his book "on the three aspects of linguistic phenomena and experiments in linguistics" ("on the three aspects of linguistic phenomena and the experience of linguistics"): 3 i.a. baudouin de courtenay. selected works on general linguistics. m .: publishing house of the academy of sciences of the ussr, 1963 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 3 www.americanjournal.org 1. the speech structure of a person is not just the sum of an individual’s speech experience, but a psychophysiological phenomenon. the psychophysiological structure itself is a social product along with the speech activity conditioned by it. even the smallest changes in the living conditions of a sociolinguistic group affect the change in speech activity. 2. linguistic phenomena consist of processes of speech and comprehension, systems separated from language materials (texts) and language materials. l.v. shcherba emphasizes the need to focus linguists' attention on "unprocessed language materials", ie children's speech, speech pathology, various speech errors, emphasizing the need to study "real speech", the real facts of human speech (communication) behavior 4. these ideas later became the basis for psycholinguistics and neurolinguistics. the scientist who specializes in neurolinguistic problems is r.o. jacobson. in addition to analyzing the various manifestations of aphasia, he applied a completely new approach to aphasiology the linguistic approach. until then, linguistic facts (phonological, morphological, syntactic, etc.) were ignored, and mainly psychophysiological indicators of aphasia, such as sensory-motor, were analyzed.jacobson introduced into linguistics a dichotomy of selection based on the paradigmatic relationship of units and combinations that reflect their external relations, such as neighborliness, connection syntagmatics. according to him, various disorders in the brain lead to disruption of various mechanisms in the construction of language structure. the psychological foundations of neurolinguistics are determined by the theoretical and methodological views of ls vygotsky. its main rules are: 1) psyche this is a function, a human feature as a material being; it has a certain physical form, i.e. the brain; 2) the human psyche is social. the solution of its features should be sought not in biology (like behaviorists), nor in the independent "law of the soul" (like the psychologists of the old european school), but in the history of mankind, society. the physiological foundations of neurolinguistics are linked to n.a. bernstein’s theory of physiological activity. in his view, human activity is purposeful, that is, their actions are goal-oriented and organized on that basis. mechanisms such as movement, control, correction are carried out by the multiplicity of our nervous system. there are so many levels that behavioral correction can only be done at a high level, not all of them. a similar situation is observed in speech behavior (communication behavior). in people who are fluent in their mother tongue, the highest level of communicative behavior is the text, the level of the whole sentence. it controls speech production in general, the level of content expression. when composing text, words appear to appear spontaneously, but the level of word selection from the semantic field is high when words need to be selected, or when they seem to be forgotten. this shows that the concept of high level is relative, variable. each of the lower levels can remain high. apparently, the development of aphasiology and its directions, the study of human communication behavior on the basis of brain activity, contributed to the emergence and development of neurolinguistics. according to the problem of determining the level of participation of the cerebral hemispheres in speech activity, current neurolinguistic views are divided into two major groups: a.r. luria's moscow school of neurolinguistics under t.v. akhutina and st. petersburg neurolinguistic 4 l.v. shcherba. on the threefold aspect of linguistic phenomena and on the experiment in linguistics. // language system and speech activity. -l., 1974. -s. 24-39 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 4 www.americanjournal.org schools under t.v. chernigovskaya. the moscow school denies the involvement of the right hemispheres in speech activity. representatives of the st. petersburg school, on the other hand, put forward the idea that different mechanisms of language are distributed between the right and left hemispheres of the brain. it can be said that modern neurolinguistics is approaching psycholinguistics and cognitive sciences with its scientific problems. thus, human communicative competence, as a function of the brain, encompasses important social situations in their communication, serving the complex mechanisms and processes involved in the formation of speech and its comprehension speech communication. thus, neuropsychological analysis of speech and changes in coding as a result of impaired brain function in the process of sentence formation and comprehension decoding, that is, "the organization of human communication competence in the brain" is the subject of neurolinguistic research. in this respect, neurolinguistics approaches psycholinguistics. both learn speech activity. neurologists are actively using neuropsychological methods, focusing more on the role of the brain. in particular, a.r. luria argues that human perception of the universe is based not only on the senses, but also on rational cognition.5 a.r. luria combined a systematic analysis of speech disorders with theoretical concepts of linguistics and psycholinguistics. in this regard, g. paul says: "mental states occur in one heart in accordance with the general laws of individual psychology." 6 l.v. shcherba distinguishes speech organization (psychophysiological organization of the individual), language system and language material (speech activity) and calls it “the generality of the phenomena of speech and comprehension”. this three-member system of l.v. shcherba was perfected by a.a. leontev. aa leontev defines "language ability" the reflection of the language system in the mind of the person speaking the language, the "language process", ie the speech itself, which is the means of language ability, and the "language standard" the system in which language exists outside the individual separated as.7 man is involved in the process of realizing existence throughout his life. the need for knowledge is satisfied in many ways through language.11 hence, a person's cultural, spiritual, and intellectual image is expressed through his language (speech). from this point of view, speech disorders are one of the cases where language parameters can help in assessing a person’s condition. in some situations (during stress, depression) the physiological changes that occur in humans may not be noticeable, but these changes are certainly reflected in their speech. such changes can be identified based on language criteria. 5 luria a.r. language and consciousness. m .: nauka, 1979 .-p.28. 6 paul g. principles of the history of language. m .: nauka, 1960 .-p.36. 7 leontiev a.n. problems of the development of the psyche. m., 1972, p. 13. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 109 www.americanjournal.org ideals of a creative person (in the example of the novels of isajon sultan and paulo coelho) akhmadjonov khudoberdi, fargona state university, master of literature (uzbek literature) 2nd stage a. qosimov, scientific leader doctor of philology, professor a b s t r a c t k e y w o r d s this article analyzes the ideals of a creative person. the views of the author are studied on the example of the works of i. sultan and p. coelho. analytical opinions are also presented regarding the opinions of these writers about creativity. image, event, creator, era, idea, position, reality, existence, being, material. introduction every artist has a little universe. the realities of life depicted in the works of writers are, in fact, different scenes of the other world. the image in their works is inextricably linked with the author's character, biography, worldview, upbringing environment, of course. along with this, the writer's or poet's constant interest and the impression of a certain place that they always strive for are also important in terms of the artistic characteristics of the work. because the work of any genre, regardless of when it was written, leaves little trace of the subjective aspects of the creator's personality. the writer paulo coelho also recognizes this and gives the following opinion: you should remember your humble origin. so when i want to shoot and write a book, i don't know why, i have to go back to brazil and cling to the brazilian way of life and this people who have a unique ability to not separate reality from fiction, this is a magical force in the material world, they mix it all up. this is exactly the kind of environment i need to write a book. therefore, any masterpiece is created as a result of the writer's complex spiritual evolution, and this evolution always requires a very deep study. in all eras, creators embodied their heroes in different ways. in all forms of art, the original goal of the artist is to depict the unique, unbridled, passionate and depressed sufferings of the psyche. human sufferings and dreams are depicted in works of art. artists express human emotions, pain, suffering, joy and happiness through delicate images. creative people convey conclusions about life to the reader in some form on the basis of thinking, intelligence, and strong spiritual impression, and in this process they try to express their ideals. that's why the writer's outlook and spiritual energy are mixed with every living work. writer isajon sultan answered a reader's question about popular literature: "a large crowd is demanding to watch, and if we look at it from the point of view of modern marketing, this is the situation. many people want love stories, detective or horror works and many similar things. in this sense, popular literature is the literature of the masses. therefore, it is not right to call such literature american journal of business management, economics and banking volume 10 march, 2023 p a g e | 110 www.americanjournal.org as thought literature, it is similar to a talk show that serves for people to relax, have fun, write and pass the time. here, the writer criticizes today's light-hearted works and gives examples of works that have become classic masterpieces of world literature, distinguished by the importance of the theme and the agelessness of the theme. song emphasizes that the contemporary artist is looking for a way. for this reason, isajon sultan wants a real creative person to create works not for the public or for fame, but on the contrary, to glorify high feelings, to stimulate the reader's thinking, to think above the fleeting concerns of life. isajon sultan's novel azod contains a story about a lion. clear mirrors were placed on all sides of a room opposite him, and whoever entered there would see himself reflected. also, the memory of this room will reflect sounds. one day they let a young lion into this room. he entered and saw countless lions staring at him from all sides. savage nature prevailed and bared its teeth, and so did those around it. the young lion prepared to pounce and growled loudly. his roar echoed in different directions and sounded like the roar of thousands of lions. then the young lion was furious, and he threw himself at his nearest opponent, and thus fought until he was exhausted with countless lions there... after a long time, the people who entered the room saw that the lion had died after fighting with the lion. and in the windows on the side of the cake, the lifeless bodies of thousands of lions were lying... ” so, because there is a valuer, there is a valuer. if there is not one lion, there will not be thousands of lions. there is another side to the matter, which is the mirror. kozgu (reflector) means the whole being outside the minority. it follows that the whole existence is reflected in the single existence. the world around us is stable and unchanging, the events in it are reflected in you, because you value them, says the writer. what you value is valuable, and what you do not value is worthless. "azod novel is built on this basis from the beginning to the end. everything, events are continuously reflected. naturally, this means that there is another world behind the world we know. every detail in the work, every image is constantly changing. in each reality of existence that appears to us, a certain part of the human inner world is reflected. according to the novel, the whole world is reflected in the heart of a person according to his feelings and desires. here, too, the issue of the minority rises to the main place and shows an important philosophy. through gestures, the artist moves towards meanings, towards the breadth of thought. the goal of the hero of the play is to reach his beloved aydin. he boldly goes towards his destiny. a symbol of a person striving to realize the free truth. illa, he wishes to understand the secret of azal and abad. in this sense, we see that the fate of the whole nation is reflected in his heart. a story is told in the introduction to paulo coelho's the alchemist. the alchemist, holding a book brought by one of the passengers, falls into the story of nargis. the alchemist knew the legend of a beautiful young man who spent the whole day in a pool of water, infatuated with his beauty. eventually, infatuated, he falls into the water and drowns. a flower will grow on the beach and they will start naming it after the boy. but oscar wilde remembers telling the story differently. after taking nargis, the armenian angels notice that the fresh water in the stream has become salty from her tears, and they ask jilga why she is crying. jilga says that she is shedding tears for nargis. the angels admit that it's not surprising, that they all run away from him when he shoots ormon, only that jill has seen his beauty up close. then jilga tells the angels that he did not american journal of business management, economics and banking volume 10 march, 2023 p a g e | 111 www.americanjournal.org see nargis, on the contrary, when he came to the beach and bowed his head, he adjusted his beauty in the depths of his eyes. who knows about it but you? the armenian angels were surprised. after all, wouldn't he bow down to your water all day on your beach? jilga was silent for a long time and finally answered: i am crying even though i never understood nargis's beauty. the reason i'm crying is because every time he lands on my shore and bows to my waters, he sees my beauty in the depths of his eyes. the above reflection is also clearly visible in this narration. only here is depicted a being who has realized what a great miracle he is, but has not yet realized the signifier. in the process of such description, it is necessary for the writer to be able to choose his position correctly, to use the necessary elements to reveal the idea of the work. for this, the writer must first of all analyze the reality of life in depth, feel it with his heart, refine it with his worldview, and enrich it with details that serve a certain idea in order to create an artistic reality. only then will the creator's ideals become important in impressing the reader's consciousness. foydalanilgan adabiyotlar: 1. исажон султон. озод. роман ва ҳикоялар. – тошкент: “sharq”, 2012. 367-b. 2. исажон султон. озод. роман ва ҳикоялар. – тошкент: “sharq”, 2012. 372-374. 3. манзура oтажанова. “боғи эрам ” ҳикоясида аниматик мифология ва унинг хусусияти. \\исажон султон ижоди: талқин ва тадқиқ. тошкент. “turon zamin ziyo”. 2017. 199-b. 4. isajon sulton nasri badiiyati. ilmiy maqola va risolalar to‘plami toshkent. “turon zamin ziyo” 2017. 5. isajon sulton asarlar: roman va qissalar. 2-jild toshkent. “g’ofur g‘ulom” 2017. 6. khushbokov jovli, isadjan sultan. conversation.if the prayer of the hand is lucky // literature and art of uzbekistan // issue 31. july 29, 2016. 7. boboyev t. adabiyotshunoslik asoslari. toshkent, 2002. 8. umurov x. “adabiyotshunoslik nazariyasi”, 2005. 9. худойбердиев э. адабиётшуносликка кириш. — т.: “ўкитувчи”, 1995. 10. komilov n. tasavvuf yoxud komil inson axloqi. birinchi kitob. toshkent: “yozuvchi”, 1996. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 148 www.americanjournal.org inclusive growth: current situation, prospects of existing problems (in the case of the republic of uzbekistan) sharipov ruslan baxtiyor ugli, graduate student of tashkent state university of economics a b s t r a c t k e y w o r d s inclusive growth has been a popular concept globally in recent years to address the problems of growing inequality, social disparity and environmental degradation. raising the standard of living of the population is the primary goal of the state economic policy. the first condition and way to achieve this goal is to ensure economic growth. economic growth must be inclusive. in recent years, essential reforms aimed at promoting inclusive growth and increasing the welfare of citizens have been implemented in uzbekistan. this scientific article examines the situation and problems of the republic of uzbekistan in achieving inclusive growth, as well as the analysis of the index of inclusive growth. inclusiveness, inequality, inclusive growth index, indicators, stability, private sector, human capital, green economy, prosperity, inclusive economy, labour market, poverty, liberalization, corruption, environmental protection, resource reserve, environmental problems. introduction according to the definition by the organization for economic cooperation and development (oecd), inclusive growth is economic growth that is fairly distributed in society and creates equal opportunities for all. achieving inclusive growth is one of the important and main goals of many countries of the world, including the republic of uzbekistan. however, as with any country undergoing rapid change, it is no secret that there are challenges and obstacles to overcome. to achieve inclusive growth, it is necessary to solve several issues, such as removing obstacles to the growth of the private sector, reducing the role of the state in the economy, focusing on people and their human capital, and transitioning to a green economy. ensuring macroeconomic stability, economic growth and raising the standard of living of the population in the complex conditions that have arisen in the world economy, ensuring the consistency and continuity of economic reforms to achieve our country's strong position in the world economy at the expense of increasing the competitiveness of the national economy. provision is required. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 149 www.americanjournal.org the main part the rise of inequality and its impact on the economy and various societies has been causing concern among politicians, economists and the world community. economic performance, including well-being, should not only be measured by economic growth but equity and environmental sustainability should also be considered. it is argued that the current level of inequality in all countries is harmful not only morally, but also economically and politically. it cannot be denied that we are currently facing the most complex and widespread environmental problems in the world's history. rapid population growth, climate change, urbanization and unsustainable consumption have all led to environmental pollution and increased conflicts over land, water and energy resources. achieving inclusive growth in uzbekistan remains relevant today, and the state is taking measures to stimulate the economy. one of the main areas in which the government is directing its efforts is reforms in the education and labour market. by addressing the human capital gap, the government hopes to create a more inclusive economy with jobs and development opportunities for all members of society. according to the world bank's systematic country diagnostic (scd) report, the main challenges and opportunities that hinder the achievement of inclusive growth in uzbekistan include: 1. removing obstacles to private sector growth: authorities should improve the allocation of land, labour and finance, as well as the legal and regulatory framework for competition in the private sector; adopt trade and investment policies that promote global integration of the private sector; building strong private sector support services; acceleration of agricultural market reforms, which will put an end to the intervention of the state in the agricultural market. 2. reducing the role of the state in the economy: the state needs to ensure more private sector growth and encourage job creation. 3. focusing on human capital: recommends people-oriented policies and investment in human capital to achieve inclusive growth. 4. transition to a green economy: uzbekistan should build an ecological and sustainable future as one of the ways of development that will help it achieve its ambitious goals.1 since the first days of uzbekistan's independence, comprehensive reforms have been carried out consistently and rationally. for this purpose, the government has established a national centre for the assessment of the quality of education throughout the country. in addition to these efforts, international organizations such as the united nations development program (undp) are also trying to promote inclusive growth in uzbekistan. undp is working with civil society and the private sector to create employment opportunities, improve the living standards of rural residents, introduce microfinance and business advisory services, reform the education system, and encourage entrepreneurship. although there are certainly challenges to achieving inclusive growth in uzbekistan, the efforts of the government and the support of international organizations have been an important pillar. by continuing to focus on education and labour market reforms and working with partners to promote inclusive economic development, uzbekistan can build a more inclusive economy that benefits all members of society. uzbekistan has the potential for rapid and inclusive growth. part of the solution is education and labour market reforms that close the skills gap. 1 uzbekistan's reforms: a new equation for inclusive growth and cooperation (imf.org) https://www.imf.org/en/news/articles/2019/05/17/sp051719-lagarde-uzbekistan-reforms-a-new-equation-for-inclusive-growth-and-cooperation american journal of business management, economics and banking volume 13 june, 2023 p a g e | 150 www.americanjournal.org the first iteration of the inclusive growth index consisted of three pillars, i.e., economy, living conditions and equality, and consisted of 21 indicators, including one environmental indicator (co2 carbon dioxide). the new, expanded inclusive growth index takes a broader view of gender inequality and includes a new, separate column dedicated to environmental issues. expanded inclusive growth index: consists of 4 categories and 27 indicators. figures on the indicators of the inclusive growth index of the republic of uzbekistan have been developed below: table 1 (independent work by the author) categories № indicators figures economy 1.1 gdp per capita 8 476(2021)2 1.2 adjusted net national income per capita 1 375(2020)3 1.3 labour productivity, usd/person (gdp per person employed 5 017(2022)4 1.4 employment rate (ratio to labour force), 15+, total (%) (modeled estimate) 0.70 (2022)5 1.5 electric power consumption, kwh/person 1 674(2021)6 1.6 exports of goods and services (% of gdp) 23.74(2021)7 living conditions 2.1 logistics performance index: overall (1=low to 5=high) 2.6(2023)8 2.2 fixed internet broadband subscriptions per 100 people, units 19.96(2021)9 2.3 under five mortality rate (deaths per 1.000 live births) 14.22(2021)10 2.4 people using safely managed drinking water services (% of population) n/a 2 gdp, ppp (current international $) uzbekistan | data (worldbank.org) 3 uzbekistan adjusted net national income 2023 data 2024 forecast 1998-2020 historical (tradingeconomics.com) 4 in the absence of direct information, it was calculated by the author based on the data of the world bank and the international labor organization. 5 calculated by the author based on the data of ‘stat.uz’ and ‘xabar.uz’ 6 o‘zbekistonda elektr energiya ishlab chiqarish (stat.uz) 7 uzbekistan exports of goods and services (% of gdp) 2023 data 2024 forecast 1990-2021 historical (tradingeconomics.com) 8 the logistics performance index and its indicators 2023 (lpi 2023 report, world bank), page 8 9 fixed broadband subscriptions (per 100 people) uzbekistan | data (worldbank.org) 10 calculated by the author based on the data of ‘data.unicef.org, child mortality estimates. country-specific under five deaths (un igme) in 2023’ and ‘2022 revision of the united nations world population prospects report’ https://data.worldbank.org/indicator/ny.gdp.mktp.pp.cd?locations=uz https://tradingeconomics.com/uzbekistan/adjusted-net-national-income-us-dollar-wb-data.html https://stat.uz/uz/matbuot-markazi/qo-mita-yangiliklar/15185-o-zbekistonda-elektr-energiya-ishlab-chiqarish https://tradingeconomics.com/uzbekistan/exports-of-goods-and-services-percent-of-gdp-wb-data.html https://tradingeconomics.com/uzbekistan/exports-of-goods-and-services-percent-of-gdp-wb-data.html https://data.worldbank.org/indicator/it.net.bbnd.p2?locations=uz american journal of business management, economics and banking volume 13 june, 2023 p a g e | 151 www.americanjournal.org 2.5 school enrollment, secondary (% gross) 97.42(2019)11 2.6 coverage of essential health services 67(2019)12 2.7 proportion of adults (15 years and older) with an account at a bank or other financial institution or with a mobile-money-service provider 44.13(2021)13 equality 3.1 income concentration ratio (gini index), units 54.5(2019)14 3.2 poverty headcount ratio at 5.50 usd a day (2011 ppp) (% of population) 75.14(2019)15 3.3 school enrollment, secondary (gross), gender parity index (gpi) n/a 3.4 ratio of female to male employment rate (modeled ilo estimate) 175(2021)16 3.5 ratio of youth to adult employment rate (modeled ilo estimate) n/a 3.6 gender parity in the number of seats held by women and men in national parliaments 32.7(2021)17 3.7 ratio of female to male labour force participation rate (%) (ilo modeled estimate) 63.31(2021)18 3.8 ratio of female age of first marriage to male age of first marriage 0.7519 11 uzbekistan school enrollment, secondary (% gross) (indexmundi.com) 12 primary data availability for uhc service coverage index (sdg 3.8.1) (%) (who.int) 13 account ownership at a financial institution or with a mobile-money-service provider (% of population ages 15+) | data (worldbank.org) 14 uzbekistan's inequality levels | 2022 | economic data | world economics 15 list of sovereign states by percentage of population living in poverty wikipedia 16 uzbekistan ratio of female to male labor participation rate 2023 data 2024 forecast 1990-2021 historical (tradingeconomics.com) 17 country fact sheet | un women data hub 18 modeled ilo estimate 19 calculated by the author based on the data of ‘undp’ and ‘wikipedia’ https://www.indexmundi.com/facts/uzbekistan/indicator/se.sec.enrr https://www.who.int/data/gho/data/indicators/indicator-details/gho/sdg-3-8-1-primary-data-availability-for-uhc-service-coverage-index https://data.worldbank.org/indicator/fx.own.totl.zs https://data.worldbank.org/indicator/fx.own.totl.zs https://www.worldeconomics.com/inequality/gini-coefficient/uzbekistan.aspx#:~:text=uzbekistan's%20gini%20coefficient%20index%20is,d.c.%20united%20nations%20university%2c%20helsinki. https://en.wikipedia.org/wiki/list_of_sovereign_states_by_percentage_of_population_living_in_poverty https://tradingeconomics.com/uzbekistan/ratio-of-female-to-male-labor-participation-rate-percent-wb-data.html https://tradingeconomics.com/uzbekistan/ratio-of-female-to-male-labor-participation-rate-percent-wb-data.html https://data.unwomen.org/country/uzbekistan american journal of business management, economics and banking volume 13 june, 2023 p a g e | 152 www.americanjournal.org 3.9 ratio of the share of wage and salaried workers in women’s employment to men’s employment n/a 3.10 share of women’s service employment to total employment, raised to the power of the inverse of the palma ratio n/a environment 4.1 co2 emissions (kg per ppp usd of gdp) 0.43(2021)20 4.2 energy intensity level of primary energy (mj/$2017 ppp gdp) n/a 4.3 efficiency of water use (water productivity) 16.52(2020)21 4.4 terrestrial protected areas (% of total land area) 5.77(2021)22 conclusion uzbekistan is embarking on major reforms to achieve inclusive growth and reduce poverty, and the country is making significant progress in economic liberalization, improving the business environment, investing in human capital, and expanding regional cooperation. however, many problems remain, such as increasing the volume of quality investments, maintaining economic and financial stability, and fighting corruption. to overcome these problems, uzbekistan must continue to implement rational policies that develop the private sector, promote trade and integration, protect the environment, and ensure social inclusion. through this, uzbekistan can fully realize its potential as a centre of innovation and prosperity in central asia. the need to transition to a green economy in uzbekistan is because most of the energy consumed in the national economy is produced using non-renewable natural resources, the limited supply of these resources, environmental pollution due to the rapid development of industry, water shortage, and the drying up of the aral sea. the increasing severity of related environmental problems explains it. inclusive growth stimulates regional development, achieving social stability, and increasing economic potential through the creation of new jobs in green economy sectors. at the same time, it reduces the risk of global threats such as ensuring environmental protection, climate change, loss of minerals and scarcity of water resources. but if we look at the entire world's development, its generality is revealed, that is, when the world civilization has gathered strength and reached the highest point of its power, unless all the countries of the world choose an ecologically oriented model for economic development, globalization under these conditions, there is a danger that the entire planet will gradually decline and even disappear altogether. 20 calculated by the author based on the data of ‘uzbekistan co2 emissions, 1970-2022 knoema.com’ and ‘world bank’ 21 water use efficiency (dataset 2022) – fao (food and agriculture organization) 22 uzbekistan terrestrial protected areas (% of total land area) (indexmundi.com) https://knoema.com/atlas/uzbekistan/co2-emissions https://www.indexmundi.com/facts/uzbekistan/indicator/er.lnd.ptld.zs american journal of business management, economics and banking volume 13 june, 2023 p a g e | 153 www.americanjournal.org references 1. uzbekistan's reforms: a new equation for inclusive growth and cooperation (imf.org) 2. gdp, ppp (current international $) uzbekistan | data (worldbank.org) 3. uzbekistan adjusted net national income 2023 data 2024 forecast 1998-2020 historical (tradingeconomics.com) 4. in the absence of direct information, it was calculated by the author based on the data of the world bank and the international labor organization. 5. calculated by the author based on the data of "stat.uz" and "xabar.uz". 6. o‘zbekistonda elektr energiya ishlab chiqarish (stat.uz) 7. uzbekistan exports of goods and services (% of gdp) 2023 data 2024 forecast 1990-2021 historical (tradingeconomics.com) 8. the logistics performance index and its indicators 2023 (lpi 2023 report, world bank), page 8 9. fixed broadband subscriptions (per 100 people) uzbekistan | data (worldbank.org) 10. calculated by the author based on the data of ‘data.unicef.org, child mortality estimates. countryspecific under five deaths (un igme) in 2023’ and ‘2022 revision of the united nations world population prospects report’ 11. uzbekistan school enrollment, secondary (% gross) (indexmundi.com) 12. primary data availability for uhc service coverage index (sdg 3.8.1) (%) (who.int) 13. account ownership at a financial institution or with a mobile-money-service provider (% of population ages 15+) | data (worldbank.org) 14. uzbekistan's inequality levels | 2022 | economic data | world economics 15. list of sovereign states by percentage of population living in poverty wikipedia 16. uzbekistan ratio of female to male labor participation rate 2023 data 2024 forecast 19902021 historical (tradingeconomics.com) 17. country fact sheet | un women data hub 18. modeled ilo estimate 19. calculated by the author based on the data of ‘undp’ and ‘wikipedia’ 20. calculated by the author based on the data of ‘uzbekistan co2 emissions, 1970-2022 knoema.com’ and ‘world bank’ 21. water use efficiency (dataset 2022) – fao (food and agriculture organization) 22. uzbekistan terrestrial protected areas (% of total land area) (indexmundi.com) https://www.imf.org/en/news/articles/2019/05/17/sp051719-lagarde-uzbekistan-reforms-a-new-equation-for-inclusive-growth-and-cooperation https://data.worldbank.org/indicator/ny.gdp.mktp.pp.cd?locations=uz https://tradingeconomics.com/uzbekistan/adjusted-net-national-income-us-dollar-wb-data.html https://tradingeconomics.com/uzbekistan/adjusted-net-national-income-us-dollar-wb-data.html https://stat.uz/uz/matbuot-markazi/qo-mita-yangiliklar/15185-o-zbekistonda-elektr-energiya-ishlab-chiqarish https://tradingeconomics.com/uzbekistan/exports-of-goods-and-services-percent-of-gdp-wb-data.html https://tradingeconomics.com/uzbekistan/exports-of-goods-and-services-percent-of-gdp-wb-data.html https://data.worldbank.org/indicator/it.net.bbnd.p2?locations=uz https://www.indexmundi.com/facts/uzbekistan/indicator/se.sec.enrr https://www.who.int/data/gho/data/indicators/indicator-details/gho/sdg-3-8-1-primary-data-availability-for-uhc-service-coverage-index https://data.worldbank.org/indicator/fx.own.totl.zs https://data.worldbank.org/indicator/fx.own.totl.zs https://www.worldeconomics.com/inequality/gini-coefficient/uzbekistan.aspx#:~:text=uzbekistan's%20gini%20coefficient%20index%20is,d.c.%20united%20nations%20university%2c%20helsinki. https://en.wikipedia.org/wiki/list_of_sovereign_states_by_percentage_of_population_living_in_poverty https://tradingeconomics.com/uzbekistan/ratio-of-female-to-male-labor-participation-rate-percent-wb-data.html https://tradingeconomics.com/uzbekistan/ratio-of-female-to-male-labor-participation-rate-percent-wb-data.html https://data.unwomen.org/country/uzbekistan https://knoema.com/atlas/uzbekistan/co2-emissions https://knoema.com/atlas/uzbekistan/co2-emissions https://www.indexmundi.com/facts/uzbekistan/indicator/er.lnd.ptld.zs american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 78 www.americanjournal.org foreign experiences of effective measures of financing the activities of agroclusters q.q. mamadaliev doctoral student andijan institute of agriculture and agrotechnology. a b s t r a c t k e y w o r d s this article highlights the international experience of financing the activities of agroclusters. the article examines the situation and experiences of financing agroclusters in developed countries. the practice of financing agroclusters in germany is considered. agrocluster, financing, financial situation, agriculture, food security, resource, credit, subsidy, grant, subsidy in the current period, the development of any country is measured by the potential of its enterprises and the degree to which these enterprises can fully use the resources available in the country. especially in the period of rapid increase in the demand for food products in the world and ensuring food security among countries, rational use of available agricultural resources is in the main place. who will have to be prepared to face the risks if he cannot fully use his opportunities in this process. the sudden increase in food prices is causing impoverishment of some countries of the world. this has a negative impact on the state of the social system in the country and destroys development opportunities. wars and unrest in the world require every country to use its resources wisely and efficiently, and to ensure the stability of the economy. in this case, the main focus is on the implementation of projects that will take into account all the opportunities in the agrarian sector, provide the industry with constant resources, increase the employment of the population, and increase the income of the population. most of the countries of the world consider these opportunities in the clustering of the agricultural sector. clustering of industries is carried out through the process of clustering carried out in the country. clustering provides an opportunity to increase the competitiveness of the national economy. clustering is well developed in the usa, germany, italy, great britain, france, and has completely taken over the economy in denmark, finland and sweden. cluster policy is a set of measures aimed at increasing the competitiveness of the country in the production of agricultural products at the international level by encouraging the development of clusters in the agricultural sector in the country. policy of agricultural clustering is divided into " top-down " and " bottomup " types. when national or regional authorities take the initiative to implement the cluster policy, in accordance with its "topdown" type, this policy is usually implemented in relation to the group of enterprises forming industry clusters that participate in the added value chain of the formation of various products and services at the state level. finland, the netherlands and denmark are clear examples of this type of cluster policy. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 79 www.americanjournal.org when self-government bodies, local associations of entrepreneurs or local government bodies take the initiative in the implementation of cluster policy, it corresponds to the "bottom-up" type of cluster policy. in most countries of the world, agriculture is financially supported by the state. but special attention is paid to the organization of financing at the level of market requirements. in the developed countries, the development of agriculture has been created through the organization of agroclusters and cooperatives. the concept of cluster and the concept of cooperation have different appearances. a cluster is a system of agrarian, industrial and other related enterprises united in a single technological chain 1. at the center of the clusters is a large production enterprise, the agricultural products are fully processed, and the finished products are sent to the domestic and foreign markets. agricultural cooperative does not have such a system. agricultural cooperative means an organization established by farmers who are producers of agricultural goods, dekhon farms, and homestead land owners to meet their material and other needs for joint production or other economic activities on the basis of voluntary pooling of property contributions 2. agricultural cooperation was established in europe mainly in france. germany is the leader in europe in the organization and financing of agroclusters. a cluster platform (clusterplattform) was created in germany. part of it is financed by the state. the system of financing agroclusters is very well established in the german state of bavaria. cluster offensive bavaria was launched in 2006 and currently supports a remarkable 17 cluster platforms 3. in germany, clusters operate in almost all sectors (construction, industry, transport and agriculture). the agricultural and food industry in bavaria is the most sought-after branch of germany, with sales of 100 billion euros and more than 700,000 jobs 4. with this indicator, it takes the highest place in europe. the importance of agroclusters in this area is very important, and now the state is spending a lot of money on digitizing their activities. there is a shortage of workers for seasonal jobs in agriculture. most of the workers in germany are seasonally attracted from ukraine, belarus, and turkey. emergence of clusters is a result of mutually beneficial relations, the merger of enterprises doing business in a geographical area, coming into a single system, and he is very right. 1 rakhmatov m.a., zaripova b.z. cluster – integration, innovation and growth. t.:zamin edition 2018 page 19 2 burkhanov a. umuraliev o. issues of improvement of organizational and structural mechanisms of development of cooperative relations in agriculture. // agro science. issue #2 2020. page 109 3 s luster offensive bayern . bayerisches staatsministerium für wirtschaft, landesentwicklung und energie . 2020. page 6 4 s luster offensive bayern . bayerisches staatsministerium für wirtschaft, landesentwicklung und energie . 2020. 2 p. 6 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 80 www.americanjournal.org figure 1. factors affecting the formation and development of agroclusters in developed countries5 in europe, agroclusters emerged at the highest level of the stage of increasing development. most foreign countries , "the geographical location of related companies forms cluster structures understood as specialized producers of finished goods and services suppliers, companies engaged in related industries and organizations related to their activities, but at the same time the main partnership is to obtain additional benefits"6 5 it was done by the author based on the experience of the formation of agroclusters in developed countries 6porter m. competition / per. english — m.: id "williams", 2005. — 682 p. factors affecting the formation and development of agroclusters in developed countries for the country, the production of this agricultural product is leading in the world the expansion of the country's specialization in the production of some agricultural products and their full processing for the full processing of agricultural products, the state and private sector will provide financial assistance to this industry under favorable conditions investment attractiveness in the country in expanding the processing and export of agricultural products wide range of opportunities to use public and private projects for innovation in agricultural production or scientific research american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 81 www.americanjournal.org the formation of agroclusters in our country will bring the financing of the agricultural sector to a new level. it increases the income of the population and increases the investment potential of the agricultural sector. it will fundamentally change the financing of agriculture. as in developed countries, private sector funding will increase. as a result of the expansion of agroclusters, the products grown by farmers and households in uzbekistan, as well as in developed countries, are involved in processing and production of finished products. this increases the production of products by the population and its provision to agroclusters under agreed conditions. the income opportunities of the population will also increase. experiences of developed countries show that clusters have a very high role and importance in ensuring socio-economic development, increasing investment activity, and producing competitive goods . agrocluster structures are successfully working in the light industry of switzerland, austria, italy, denmark, india, korea, pakistan, china and turkey, in the chemical and engineering industries in germany, and in the food and cosmetics industries in france. the process of forming clusters is becoming more active in south-east asia, china, singapore, japan and other countries 2 pictures. the purpose of forming agroclusters in developed countries the purpose of forming agroclusters in developed countries ensuring the country's food security and increasing the type and quality of agricultural products development of regional infrastructure and strengthening of investment in the agricultural sector renunciation of financial support of agriculture by the state and introduction of private sector funds into the sector providing gainful employment for the population in rural areas and reducing population migration to cities increasing the amount of revenues to the state budget creation of branded agricultural products of the country on a regional scale american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 82 www.americanjournal.org according to the european cluster observatory, today there are 2101 clusters in 28 countries in western and eastern europe in various sectors of the economy, employing a total of 42 million employees. at the same time, 11.5 percent of them work in the agro-industrial complex, and 4.5 million people are employed 7. european countries managed to create a platform of clusters together. this increased the volume of production and ensured the competitiveness of the european economy. clustering is in the interest of all countries in europe. in 2021 , according to the specialization of agricultural clusters in the european union by the european cluster cooperation platform, agro-textiles (37), agro-tourism (22), energy-industry (35), creative-digital (19), healthcare (21), divided into 7 groups such as electronics-mobility (17) and non-specialized-diversified (50)8 according to the data, clusters occupy a very high share of employment in european countries. in addition, clusters have a significant role in tax payments to the state budget of countries. funding of agroclusters is established in the netherlands in a unique system. the netherlands is the leading country in europe that exports agricultural products to the whole world. the most priority areas of agroclusters are financed by the state. scientific research and innovation in agriculture are these priorities. in addition, agroclusters producing environmentally friendly agricultural products in europe are also financed by the state. the financial resources of the state are also involved in the projects implemented in order to improve the infrastructure of the rural areas and ensure the employment of the population. the following financial sources are used to finance agroclusters in developed countries: 1) from the internal financial resources of the agrocluster. in most of europe and other developed countries, all current costs of agroclusters are financed by their internal financial resources. the most developed clusters in the agricultural sector operate almost entirely on their own financial resources. due to the increase in the volume of financial resources, agroclusters have the opportunity to invest in other sectors of the economy and diversify the sources of formation of financial resources. this practice is typical for agroclusters in the netherlands, germany, and the united states. 2) from the sources of targeted financing allocated by the state to agroclusters or from the resources of the state budget. taking into account the specific characteristics of agriculture, in some developed countries, the state allocates resources to the current and investment costs of agroclusters on favorable terms. state resources are allocated to clusters in the form of grants and subsidies. such forms of financial assistance are mainly directed to the processes of harvesting agricultural products without damage. sometimes, such state resources are given in order to maintain the price of agricultural products in the domestic market at a set level, and not to plant crops on the land of agroclusters (france, germany). that is, the state allocates a subsidy for not planting crops on a certain area of the farm. this agrocluster reduces the volume of production and prevents the prices of agricultural products from falling too much in the domestic and foreign markets. 3) from the funds of various special purpose funds, funds that finance the projects of agroclusters in the scientific field. scientific works and innovative activities carried out in europe and the usa are financially supported by various non-governmental, non-commercial funds. if such scientific research and development is carried out in the agrocluster activity, this scientific development will be financed 7 http :// www . clusterobservatoru . eu site information 8franco s., murcieogo a., salado j., sisti., wilson j. european clusters panorama 2021: towards a resilient economy. available at: https://clusterscollaboration.eu/sites/defaullt/files/2021-12/t1.1 d1.02european cluster panorama report final. pdf/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ https://clusterscollaboration.eu/sites/defaullt/files/2021-12/t1.1 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 83 www.americanjournal.org by the targeted funds. this scientific development must have a positive effect on the activity of the agrocluster, increase the quality and quantity of the product, and bring benefit to the society in general. such activity is very effective in the netherlands. communication between agroclusters and scientific research institutes is organized in this order. almost such scientific developments serve the activity of agroclusters and increase their income. 4) financing the activities of agroclusters at the expense of bank credit resources. bank credit is needed by all entities operating in the economy. because there are interruptions and shortages in financial resources during the activity. in financing the activities of agroclusters, bank loans are also attracted by the clusters when there is a need for financial resources. however, it should be taken into account that bank loans are provided on favorable terms to enterprises operating in agriculture in developed countries. such favorable conditions certainly apply to agroclusters. in developed countries, financing of agroclusters activities is financed by the state within the framework of the established programs when the cluster activities are organized. clusters are the main tax payers to the state. the development of this activity is of great importance for the country's economy and forms the sources of state budget revenues. the strong influence of science on the agricultural sector serves to further develop the activity of agroclusters and increase the level of profitability in the agricultural sector. taking this into account, germany, the netherlands and other developed countries support the activities of agroclusters. during the next 40 years, developed countries formed a large school of experience in the process of organizing and financing the activities of agroclusters. this process is causing the agricultural sector to become one of the most profitable sectors in the economy. since agroclusters are the main entities that provide employment to the population living in rural areas, the state also achieves the improvement of the infrastructure of the areas by allocating funds to their activities. employment and profitability of the population in the regions will increase due to the establishment of agroclusters. list of used literature 1. porter m. competition / per. english — m.: id "williams", 2005. — 682 p. 2. rakhmatov m.a., zaripova b.z. cluster – integration, innovation and growth . t.:zamin edition 2018 page 19 3. burkhanov a. umuraliev o. issues of improvement of organizational and structural mechanisms of development of cooperative relations in agriculture. // agro science. no. 2 of 2020. page 109 4. сluster offensive bayern. bayerisches staatsministerium für wirtschaft, landesentwicklung und energie . 2020. page 6 5. franco s., murcieogo a., salado j., sisti., wilson j. european clusters panorama 2021: towards a resilient economy. available at: https://clusterscollaboration.eu/sites/defaullt/files/2021-12/t1.1 d1.02european cluster panorama report final. pdf/ 6. http :// www . clusterobservatoru . eu site information https://clusterscollaboration.eu/sites/defaullt/files/2021-12/t1.1 https://clusterscollaboration.eu/sites/defaullt/files/2021-12/t1.1 http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ http://www.clusterobservatoru.eu/ american journal of business management, economics and banking issn (e): 2832-8078 volume 1, | june, 2022 p a g e | 55 www.americanjournal.org role of artificial intelligence in business risk management arshi naim king khalid university, abha, ksa arshi@kku.edu.sa a b s t r a c t k e y w o r d s in the current technological development artificial intelligence (ai) has received acceptance level and seen drastic growth and applications in various domains. financial sector (fs) that includes financial markets (fm), institutions and policies have major impacts of ai. another important benefit of application of ai is in cost modelling (cmd) which helps in determining the success factors of any business operations. ai aids in understanding and measuring the variable for cmd. ai technology brings massive transformation to the entire financial industry, which creates a series of new financial services such as intelligent consultant, intelligent lending, monitoring and warning, and intelligent customer service. this paper reviews the development and application of ai and its impacts on macroeconomics and microeconomics to show the advantages of ai in fs generally and in fm precisely. risk management’s (rm) competencies have enhanced by the application of ai, this paper coves the reasons for growth of ai in general scenario and for rm specifically. this paper also describes three methods and challenges for cmd based on ai techniques. three methods are analog, analytical and parametric method for cost estimation and modelling. results suggest the strategies and application of ai for financial rm and cmd. ai; financial markets; cost modelling; risk management; analog method ; analytical method; parametric method introduction artificial intelligence (ai) is presented as the most innovative and strong tool for other disciplines for their effective applications and benefits because in the current scenario this is the only tool or technology which is compared with the intelligence of humans and can be trusted for its results to quite an extent. the growth and applications of al is increasing every day and we witness new roles of ai in different sectors as a result the dependence on ai is increasing drastically. the business opportunities and growth are expanding and they explore more market for their services and products, american journal of business management, economics and banking volume 1, june, 2022 p a g e | 56 www.americanjournal.org in this situation ai is able to provide many benefits to meet business objectives. ai facilitates in integrating the technology and concepts in the real time environment and give better return on investments and other tangible as well as intangible advantages. these advantages may include cost analysis, risk assessment, market development, strategic analysis, etc. there are many benefits of ai and as of another sphere, there are many concerns too. ai has aggravated the problems of computing ethics, increased digital divide, and lead to biased decisions. apart from these concerns ai also has to be checked for its unambiguous working, complexities in algorithms and cyber threats. similarly ai has to be monitored for strategic planning at organizational level as well as industrial level. figure 1. reasons to apply ai in the current digital technology, ai has become the stimuli for increasing the level of competition at all places such as firms, government, international businesses, education, etc. the growth of internet and is and it financial analysis is no longer depending on statistical methods of its results, applications and benefits. there are many applications introduced by ai which have integrated the statistical methods for analyzing effectively and efficiently the applications of finance and some of the examples are given in figure 2. figure 2. examples of ai in finance ai has been using vra and tsm for measuring financial performance for the firm and aids in developing the future model for the growth and development for the firm financial structure. tsm has its own advantages and ai use this for prediction of outcomes, problem solving, and methods of resolving errors and do accurate financial data analysis (fda). ai in the stock investment of financial market and fda plays a great role because people aspires to know the risk and returns and both are easily and accurately calculated by ai. financial experts at all levels of industry use ai in analyzing good investment decisions and also apply techniques of dmg in fda and in stock market analysis (sma). this helps in measuring good investment decisions, sma, cost analysis, forecasting market trends and methods for profit maximization. ai is extensively applied in fda and some of the areas are listed in figure 3. ai reasons and methods of using ai new issues and cyber threats due to ai problems in strategic decision making and results due to dependece on ai ai in finance vector regression algorithm (vra) time series model (tsm) data mining (dmg) american journal of business management, economics and banking volume 1, june, 2022 p a g e | 57 www.americanjournal.org figure 3. ai application in fda ai has many impacts in fda and also influence in financial laws and regulations (flr). ai helps to measure the effective of flr that can aid in building the regulations, describing the legal and illegal compliances, etc. ai follows retrospective trends to measure the fda and flr and use it for monitoring the at, liu, fdt and imt. this research focus on the development and role of ai in fm and fs for doing the study of rm and cmd. cmd is an important area in fda and ai plays an important role in this estimation. ai calculates the cost required to invest and deploy for any successful business, resources and time management and over all estimation of the cost and budget analysis. ai identifies the factors and techniques needed for cmd and how retroseptic fda can aid to the process. the method is based on fda where ai calculates the costing in numerical terms and with the help of dmg process the need for cost requirements in the business and also rm needed in the sector. this research is a descriptive study based on qualitative analysis which is divided into four parts; first part will cover the related studies of ai’s role in cmd and rm and general growth and development of ai. the second part discusses the roles, advantages and challenges in cmd and rm. third part presents the recommendation and general advantages of ai in cmd and rm. fourth part concludes the general scenario of ai and specific competitive advantages in cmd and rm. 1. literature review 2.1 the development of artificial intelligence in financial field with the rapid development of artificial intelligence technology, ai is widely popularized in financial field. factors that accelerate the fintech development, promote the development of artificial intelligence and machine learning in financial field, and drive financial institution to reduce cost, management risk, improve quality of service and increase profit by using ai and machine learning. in early 1960s, one of the algorithms in machine learning-bayesian statistics become famous, it has been widely used in financial area until now [4]. moreover, the reason that bayesian theory become popular in financial area, is its application in auditing area. in the auditing field, judgment made by auditor, used to rely on professional knowledge and experience, but different cases have different situations. various uncertain factors need to be considered in the decision-making of auditing. therefore, ai in fda investment management (imt) algorithm trading (at) loan and insurance underwriting (liu) fraud detection (fdt) american journal of business management, economics and banking volume 1, june, 2022 p a g e | 58 www.americanjournal.org bayesian model provides objective and rational probability to auditor and help them to make more accurate assessment, as well as reducing the misjudgment caused by auditor’s personal emotion [5]. in the initial stage of cooperation between artificial intelligence and financial industry, it focuses on reducing the workload of financial practitioners by computing power of computers. until 1980s, expert system (intelligence system based on knowledge) is used in the financial industry to predict the trend of market and provide customize financial plan. a basic expert system includes six components, which are knowledge base, data base, inference engine, explanation facility, knowledge acquisition and user interface, as figure 1 shown. hodgkinson and walker [7] raised a rule-based expert system to achieve decision-making process, which helps financial intuitions to make decision on credit application of cooperate credit loan. shue et al. [8] establish expert system contains domain knowledge base and operational knowledge base, to credit ranking of listed companies in taiwan stock market. janulevicius and goranin [9] built up a risk management expert system to help middle and small-sized enterprise to solve the problem of lack of access to professional data security analysis due to limited fund. figure 4. levels of expert system in 1990s, due to improved computing power of computer, a series of artificial technologies are used in financial fraud detection. artificial intelligence trying to analyze massive amount of data and find out the outlier to determine financial fraud. [10] as the increasing computing power of computer and continuous improvement of artificial intelligence algorithm, the integration of artificial intelligence and financial industry will be higher and higher, and it will also be applied to more aspects in financial field. 2.2 application of artificial intelligence in financial field the application of artificial intelligence and machine learning in financial field can be divide into four aspects. firstly, it is customer-oriented (front-end) applications, including credit scoring, insurance and customer-oriented service robot; secondly, management level (back-end) applications, including capital optimization, risk management and market impact analysis; thirdly, financial market transactions and portfolio management; lastly, ai and machine learning are used in financial institutions for “regtech” or financial regulators for “suptech”. in addition, ai and machine learning are widely used in specific scenarios such as quantitative transactions in the financial field, natural language processing, and semantic search and intelligence investment consultants. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 59 www.americanjournal.org “artificial intelligence (ai) systems are software (and possibly also hardware) systems designed by humans that, given a complex goal, act in the physical or digital dimension by perceiving their environment through data acquisition, interpreting the collected structured or unstructured data, reasoning on the knowledge, or processing the information, derived from this data and deciding the best action(s) to take to achieve the given goal. ai systems can either use symbolic rules or learn a numeric model, and they can also adapt their behavior by analyzing how the environment is affected by their previous actions. as a scientific discipline, ai includes several approaches and techniques, such as machine learning (of which deep learning and reinforcement learning are specific examples), machine reasoning (which includes planning, scheduling, knowledge representation and reasoning, search, and optimization), and robotics (which includes control, perception, sensors and actuators, as well as the integration of all other techniques into cyber-physical systems).” figure 5. growing role of ai companies in many industries are now using ai techniques to exploit data and optimize business and production processes. they process information in more productive ways and create value, with faster and more accurate decisions, reduced operational costs and personalized customer experiences. increasing capacity for data storage and new software for data-driven ai solutions are yielding paradigm changes in the analytic environment. as a result, both companies and governments have heavily increased their investments, which are driving today’s boom and achievements in ai. no data, no ai! the very first requirement for a successful ai solution is a sufficient amount and quality of data. data can be a text, number, image, audio or video. generally speaking, a three-fold data capacity problem arises for companies: they have too much data, too little data or they have not yet collected data. • variety and veracity mostly inform about the quality of the existing data. • volume and velocity determine which data ecosystem must be used in the ai solution. the ecosystem is the set of infrastructure, analytics and applications used to capture and analyses data. • velocity and value have role in the determination of algorithmic components of the solution. • when the organization has the data, it must adapt its infrastructure to better explore the quantity and quality of information available. the base of the software cost estimation was established by lawrence h. putnam and ann fitzsimmons [4], although the first approaches were carried out during the sixties. the more important progresses were performed within the big companies of the epoch. so, frank freiman, from rca, developed the concept of parametric estimation with his tool named price. norman peter, from american journal of business management, economics and banking volume 1, june, 2022 p a g e | 60 www.americanjournal.org ibm, developed a model based on adjusted curves [5]. during the seventies the number of software projects and its size suffered a big increment. most projects performed during this epoch failed. due to this, more people focused on project estimation. using statistic techniques (mainly correlations), people researched about the factors influencing over project effort. in this way, the more emblematic model, cocomo, was developed by barry w. boehm [6]. most of these models consider the effort (e) as result of an equation based on: in the nineties, boehm developed a new version of cocomo, named cocomo 2.0 [12], adapted to the new circumstances of the software (object oriented, transactions, software reusing, etc.) until the nineties, most of the improvement efforts were address to disaggregate the components of the models and proceed to adjust the parameters using regressions. other approaches were also used, in example rule systems were used by mukhopadhyay, [13], or decision trees by porter [14][15]. but the results were not satisfactory and the application of these techniques presented some problems. with the explosion of the ai techniques in the beginning of the nineties, new approaches were used: fuzzy logic, genetic algorithms, neural networks and so on. the new modelling techniques allow a most suitable selection of variables and the study and work with more representative datasets. additionally, the use of these techniques is useful combining the knowledge of the domain (those information we have about the problem) with the processing of large data information. although the existing methods have improved significantly the way in which estimation is performed, they don’t reach the required accuracy. the limitations of the existing models are derived from the difficult to quantify the factors, as well as the simplifications done in the models. the datasets used to adjust the models shall be representative. finally, considering the non-linear of the process and the dependencies of non-quantified parameters, the problem is suitable to be studied under the framework of the ai techniques. 2. discussion impacts of artificial intelligence on microeconomic the rapid development of artificial intelligence has brought new impacts and vitality to various industries. in addition to the practice field of traditional artificial intelligencethe internet industry, it also brought new impact and vitality to traditional industries, such as manufacturing and service industries. 1) artificial intelligence can automate “programmable work”. once the cost of this automation is much lower than the labor cost, industry will not hesitate to use artificial intelligence to replace this part of the labour force. it will result in a large number of “programmable” practitioners unemployed. moreover, most of the unemployed “programmable” practitioners are low-level skill and educated practitioner, which is difficult to re-educated to satisfy the new position. on the other hand, artificial intelligence brings new vitality to employment, even though ai will replace most of the “programmable work” practitioners. the demand to “non-programmable work” practitioners will increase. practitioners with high-level education and skill practitioners will increase in the long term and in large numbers as well. 2) since the artificial intelligence changes the structure of labor market, it promotes the redistribution of internal income distribution among labor. there will be more significant differences in the income of labor with different skill levels. the change of income distribution also reflects on the component american journal of business management, economics and banking volume 1, june, 2022 p a g e | 61 www.americanjournal.org (industry). the industry with less “programmable” work is less affected by artificial intelligence, and the change in income distribution is also less than other industries. 3) upgrading and transforming with the industry structure of market: every technological innovation brings a new industry replacement and upgrade. from the financial, manufacture in the past to internet and technology company nowadays. the arrival of artificial intelligence will strengthen the dominant position of technology and internet companies; therefore, traditional industries must transform and integrate new technology to avoid being eliminated by the wave of development. [19] 4) the impact of artificial intelligence on the innovation ability of enterprises: as the labor force develops toward high technology and high knowledge, enterprises need strong innovation ability and speed to maintain core competitiveness. enterprise managers must be keenly aware of the cutting-edge technology and be bold to use new technology to innovate products. [19] 5) the impact of artificial intelligence on human resources: as enterprises need innovation to maintain core competitiveness, high-end talent resources will be particularly popular, artificial intelligence expert will become an important asset of enterprises. companies will also attract talent through more favorable conditions. [19] the impacts of ai on macroeconomic 1) the impact of artificial intelligence on economic growth: artificial intelligence is mainly embodying in the automated processing of “programmable” work, thereby by reducing labor costs and improving production efficiency in the production process, it brings the profits. however, it will lead to cost increase in non-automated sector, which will reduce the share of capital return in the economy. 2) the impact of artificial intelligence on industrial organization: the first channel is the direct impact of technology, and second channel is the change of enterprise structure caused by technology. with the development of artificial intelligence, the trend of mergers and acquisitions of downstream enterprises by the large platform enterprises will become more obvious. large-scale platform enterprises are not competing for direct market profits and shares, but the data resources of entire industry chain, so as to better develop artificial intelligence. 3) the impact of artificial intelligence on trade: since artificial intelligence has significant impact on factor returns, and changes the relative returns between different elements, so that the dynamic advantages of countries change. high-tech, high-knowledge talents are vital factors in the development of artificial intelligence, therefore, talents will become important targets of trade. 4) the impact of artificial intelligence on gdp: artificial intelligence can play an important role in ecommerce recommendation system, which could change people’s consumption habit and promoting consumption. it can satisfy the requirement of stimulating domestic demand and become a new carriage that drives consumption. 5) the impact of artificial intelligence on public policy: based on the negative impact of artificial intelligence on the labor market, the government should formulate targeted public policies to ensure that overall social welfare is not impaired and alleviate the pressure caused by income inequality, which could better enjoy the productivity growth brought by artificial intelligence and the economic growth by social stability. 6) the impact of artificial intelligence on macroeconomic research methods: traditional economic research methods focus on the small samples and low-dimensional data, which make the traditional economic model have certain limitations. after applying ai in it, when researching new economic american journal of business management, economics and banking volume 1, june, 2022 p a g e | 62 www.americanjournal.org models, it is possible to use large-sample, high-dimensional data to verify. artificial intelligence will greatly promote the development of economics. general benefits for risk management across industries, ai is ever more recognized for its potential. it will change people’s day-to-day activities, including in risk and insurance management. insights, that now become visible only when losses occur, can in future emerge before then through learning from large volumes of historical data. for risk management, key benefits will relate to: • data processing: usage of not only structured but also unstructured data in massive amounts; combinations of datasets and updating patterns. • improving efficiency: reducing cost by automating day-to-day assistance and guidance in the risk management processes. • real-time and predictive: awareness of new exposures, increasing preventative risk advices, faster response time in critical situations. • business decisions: better decision-making through greater (predictive) insights and visibility of risk (also for top management). • ai action guide for risk managers this “ai action guide for risk managers” has been developed to support the risk manager in identifying key areas to apply ai methods. risk managers can use this matrix according to their organization’s specific requirements and areas of benefit, especially according to the available data, the risk management steps to be improved, claims occurring, and lines of business and total cost of risk (tcor). relevant competences for the risk manager of tomorrow faced with the progress of ai, risk managers need to position themselves as value drivers within the organization and as ai risk advisers to senior management and the board. the risk manager will not usually be a technical subject expert. he or she will add value from a combination of risk management skills, knowledge of the organization and a level of broad digital understanding. the current risk management skills – a thorough understanding of a wide range of risk management techniques, people management and communication skills – remain essential. the risk manager will also need a minimum level of digital knowledge, which will require continuing updating. traditional costing model 1. the analog method this method estimates the cost of a new product by comparison with similar products produced or purchased in the past. this method is unreliable, but can be used in extremely upstream phases (feasibility study) when the characteristics of the project or service are not yet known. we will not dwell on this type of basic estimate in this article. 2. the analytical method it estimates the cost of a product by modeling the industrial production process. this method is based on the cost structure of the product, of which it estimates each intermediate element on the basis of the american journal of business management, economics and banking volume 1, june, 2022 p a g e | 63 www.americanjournal.org materials & components involved, the process costs (machine and labor), as well as the additional structural costs. 3. the parametric method this method estimates the cost of a product or service by statistical modeling. this method uses the histories of similar products or services to define equations or statistical laws which make it possible to model the evolution of the cost as a function of certain parameters known as “cost drivers”. 4. results the statistical method, which is more consistent because it is based on the observation of real data, makes it possible to obtain a rapid and precise assessment in order to make the right decisions in the product design or redesign processes. simple to implement, it allows a large number of families of products and services to be modeled in a non-intrusive manner and without the need to acquire advanced technological expertise. the analytical method makes it possible to obtain an estimate precisely reflecting the reality (or the simulation) of a manufacturing process. more tedious to implement, it does, however, make it possible to define cost targets to be reached with explanatory factors based on the observed industrial parameters and benchmarks. in this sense, it is more appropriate for quantifying technological breakthroughs and leading supplier industrial progress plans in order to bring them to the target. it is also more relevant for quantifying technological innovations for which the company does not have a history. nevertheless, self-study algorithms and deep learning open up new horizons and fields of application for the use of statistical models, in particular through the sharing of information between companies or between them and their suppliers. 5. conclusion as a new field full of opportunities and challenges, artificial intelligence is an inevitable outcome of the development of science and technology, but at the same time, there are corresponding challenges in applying artificial intelligence. therefore, the financial system should completely understand artificial intelligence and make its application system in the financial field more consummate. in order to design a complete artificial intelligence, it is necessary to set guiding principles firstly, which aims to guide the whole process of artificial intelligence development, design, use, management and control, and carefully promote artificial intelligence applications in the field of financial risk management. in the field of financial risk management, the used of artificial intelligence for information collection must follow certain criteria to ensure the legitimacy of information collection and the interests of those who do not harm the information source. the types and strength of artificial intelligence information collection and behavior of information collection are standardized. what’s more, we should focus on r&d and application of user information encryption technology and strengthen the application of artificial intelligence in the field of financial risk management. references 1. naim, a., sattar, r. a., al ahmary, n.., & razwi, m. t. 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(2021). role of artificial intelligence in market development and vehicular communication. smart antennas: recent trends in design and applications, 2, 28 6. naim, a., hussain, m. r., naveed, q. n., ahmad, n., qamar, s., khan, n., & hweij, t. a. (2019, april). ensuring interoperability of e-learning and quality development in education. in 2019 ieee jordan international joint conference on electrical engineering and information technology (jeeit) (pp. 736-741). ieee. 7. naim, a., khan, m. f., hussain, m. r., & khan, n. (2019). “virtual doctor” management technique in the diagnosis of ent diseases. joe, 15(9), 88. 8. naim, a. (2020). realization of diverse electronic tools in learning and teaching for students with diverse skills. global journal of enterprise information system, 12(1), 72-78. 9. naim, a., & bashir, a. (2016). application of quality matters standards on supportive and online module in higher education program. research revolution, 5(3), 6-12. 10. naim, a. (2018). strategies to achieve students’ centric approach in blended learning. international journal of engineering and management research (ijemr), 8(2), 214219. 11. hussain, m. r., naim, a., & khaleel, m. a. (2020). implementation of wireless sensor network using virtual machine (vm) for insect monitoring. innovations in electronics and communication engineering: proceedings of the 8th iciece 2019, 107, 73. 12. hussain, m. r., quadri, n. n., ahmad, n., qamar, s., khan, n., naim, a., & hussain, m. e. (2019, april). effective cost optimization approach in healthcare to minimize the treatment cost of brain-tumor patients. in 2019 international conference on computer and information sciences (iccis) (pp. 1-5). ieee. 6. naim, a. (2021). green information technologies in business operations. periodica journal of modern philosophy, social sciences and humanities, 1, 36-49. 7. naim, a. (2021). applications of mis in building electronic relationship with customers: a casebased study. periodica journal of modern philosophy, social sciences and humanities, 1, 1-8. 8. naim, a. (2021). new trends in business process management: applications of green information technologies. british journal of environmental studies, 1(1), 12-23. 9. arshi naim, & mohammad faiz khan. (2021). measuring the psychological behavior of consumers for medical services. zien journal of social sciences and humanities, 2, 119–131. retrieved from http://zienjournals.com/index.php/zjssh/article/view/316 10. naim, a. (2021). applications of marketing framework in business practices. journal of marketing and emerging economics, 1(6), 55-70. http://zienjournals.com/index.php/zjssh/article/view/316 american journal of business management, economics and banking volume 1, june, 2022 p a g e | 65 www.americanjournal.org 11. naim, a. . . (2021). green business process management. international journal of innovative analyses and emerging technology, 1(6), 125–134. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/651 12. naim, a. (2021). applications of mis in building electronic relationship with customers: a casebased study. periodica journal of modern philosophy, social sciences and humanities, 1, 1-8. 13. naim, a., & alqahtani, k. (2021). role of information systems in customer relationship management. pulse, 2(2). 14. bashir, m. a., & naim, a. ict adoption analysis for innovation in higher education sector. 15. naim, a. . (2022). neuromarketing techniques for proposing information driven framework for decision making. international journal of innovative analyses and emerging technology, 2(2), 87–94. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 16. naim, a. . (2022). neuromarketing techniques for proposing information driven framework for decision making. international journal of innovative analyses and emerging technology, 2(2), 87–94. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 17. naim, a. . (2022). economies of scale for antenna’s applications in interior regions. international journal of innovative analyses and emerging technology, 2(2), 77–82. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1058 18. arshi naim. (2021). applications of e-learning tools for achieving students learning outcomes. journal of pedagogical inventions and practices, 2(2), 75–82. retrieved from https://zienjournals.com/index.php/jpip/article/view/320 19. naim, a., muniasamy, a., clementking, a., rajkumar, r. (2022). relevance of green manufacturing and iot in industrial transformation and marketing management. in: lahby, m., al-fuqaha, a., maleh, y. (eds) computational intelligence techniques for green smart cities. green energy and technology. springer, cham. https://doi.org/10.1007/978-3-030-96429-0_19 20. arshi naim. (2022). mapping of social customer relationship management with electronic customer relationship management. european journal of interdisciplinary research and development, 2, 14–25. retrieved from https://ejird.journalspark.org/index.php/ejird/article/view/10 21. naim, a. (2022). e-learning engagement through convolution neural networks in business education. european journal of innovation in nonformal education, 2(2), 497-501. 22. naim, a. (2022). measurement consumer mood and emotions for fast moving consumer goods. international journal of innovative analyses and emerging technology, 2(2), 83-86. 23. naim, a. (2022). neuro-marketing techniques for proposing information driven framework for decision making. international journal of innovative analyses and emerging technology, 2(2), 87-94. 24. naim, a. (2022). economies of scale for antenna's applications in interior regions. international journal of innovative analyses and emerging technology, 2(2), 77-82. 25. arshi naim. (2022). public enterprises: their role, importance and need in economic development. american journal of business management, economics and banking, 1, 1–11. retrieved from https://americanjournal.org/index.php/ajbmeb/article/view/7 http://openaccessjournals.eu/index.php/ijiaet/article/view/651 http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 http://openaccessjournals.eu/index.php/ijiaet/article/view/1058 https://zienjournals.com/index.php/jpip/article/view/320 https://doi.org/10.1007/978-3-030-96429-0_19 https://ejird.journalspark.org/index.php/ejird/article/view/10 https://americanjournal.org/index.php/ajbmeb/article/view/7 american journal of business management, economics and banking volume 1, june, 2022 p a g e | 66 www.americanjournal.org 26. arshi naim (2022) role of accounting and finance in performance appraisal. american journal of sociology, economics and tourism, 1-17 retrieved from 2022 https://americanjournal.org/index.php/ajset/issue/view/4 27. arshi naim (2022) islamic philosophy based business model. american journal of research in humanities and social sciences, 1-5. retrieved from https://americanjournal.org/index.php/ajrhss/issue/view/2 28. arshi naim. (2022). mapping of social customer relationship management with electronic customer relationship management. european journal of interdisciplinary research and development, 2, 14–25. retrieved from https://ejird.journalspark.org/index.php/ejird/article/view/10 https://scholar.google.com/scholar?oi=bibs&cluster=9607033831195978893&btni=1&hl=en https://scholar.google.com/scholar?oi=bibs&cluster=9607033831195978893&btni=1&hl=en https://americanjournal.org/index.php/ajset/issue/view/4 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 191 www.americanjournal.org development of entrepreneurship and attraction of investments the main factor in the development of uzbekistan миркамол мирсалиев тошкент ислом институти талабаси a b s t r a c t k e y w o r d s on may 10, 2023, the next annual conference of the islamic development bank started its work in jeddah, saudi arabia. this action every year held from measures be , then basically islam development to the bank member from the states and other from countries guests , especially international ones and local finance institution and organizations participation they do. from uzbekistan too commerce banks and another financial organizations representatives this at the event participation reach _ gladly, ours commerce banks too this at the event reach during ( self-customers requirements according to that we think ) islam development bank to the group incoming from organizations funds attraction to do according to contracts to sign. introduction: in particular , infin bank with international islam trade and finance corporation (itfc) 25 million between dollar credit line attraction to do according to contract signed . one up to for a period of time to be given funds legal of individuals trade operations to financing intended. also private _ sector development according to islam corporation (icd) 15 million with dollar two bilaterally documents signed . funds trade operations financing and equipment buy to get intended . highlight itb group of " infinbank " . to the composition incoming corporations with efficient cooperation uzbekistan finance in the market sharia principles suitable bank products has been of demand satisfaction service is doing this authoritative convention during international islam trade and finance corporation by " trustbank " small and medium business in the direction of the most good " partner " . confession done _ this the award islam development bank chairman dr. _ muhammad solomon al-jassir and international islam trade and finance corporation head performer director yes salim sonbol " trustbank " private shareholding bank management chairman to s. normukhamedov handed over information in place telling transition it's necessary , that's it until then " trustbank " private network development according to islam corporation and international trade and finance islam corporation with a total of 64 million us dollars in the amount of 6 agreement signed . they are within in uzbekistan small and medium business of subjects 54 in total project funded . this projects as a result private in the sector from an additional 1100 more than worker seats created _ in general when and uzbekistan _ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 192 www.americanjournal.org in banks islam religion to the rules suitable bank products the number increased going economy for and customers _ for too happy case _ in our country and in the dune entrepreneurship wide developed our fight can _ partnership without contracts entrepreneurship imagination come difficult _ the majority muslim and another nations partnership own in the activity wide they enslave so partnership during profit and loss in distribution serious conflicts come exit , financial problems legal to problems spinning and as a result parties from each other dissatisfied happening , that is this conflicts spiritual problems as manifestation that it is happening often meeting and religious to the scholars often _ appeal that it was done the witness we find in ancient times our ancestors used economic to the system according to any person to wealth have if , then this wealth for all legal norms first of all in society common interests and his personal interest for prepared to be need _ society of members ownership rights that's it based on is formed . company in his work sides of each other goods betrayal without making a deposit and your religion about work if they see , the creator himself is a blessing, help given . if bordi -yu, companions each other deception , betrayal if they do , the creator help their among up will go it will be very useful to get information about the islamic financial instruments mentioned in the tune for the use of financial products of the banks mentioned above. the partnership agreement is classified according to the following main categories: modern of the corporation forms : the company ul-inan or company property two or from him more than towards between contractual partnership includes , _ _ to him according to every one participant known count a penny enters and this their every together partnership assets possession verb possibility gives , this on the ground benefit partnership organization verb about to the agreement appropriate , damages while every one of the participant partnership in the capital to pay proportionate distribution condition is done ; the company ul-wujuh ( obligation based on partnership ) two or from him more than towards between of the parties reputation based on , profit get in aqsadi assets into debt buy get for partnership organize reach about agreement in itself reflection to him _ according to the parties determined with interest to the ratio according to parties own obligations perform responsibility responsibilities they get from this except , parties each one partner for in favor of participation reach share and obligation identify to get need , that's it so participation of the parties consent according to the benefit participation from the share come out , big or small towards difference to do possible ; the company ul-amal two or from him more than towards between qualified or high qualified labor to perform circle services show , known one services , high qualified tips to give or goods work release for , also agreed _ percentage to the ratio according to profit distribution for agreement in itself reflection makes _ partnership this form of capital investment input mean does not hold debate of the contract wide scattered and support from the forms one financial partnership contract is considered modern corporations and their to many known forms the following includes : _ _ sharika almusohama ( contribution society ); sharika almusohama ( contribution society ) negotiable shares equal to to shares distributed to capital have the company in itself reflection makes , in which every one of the contributor responsibility in capital his share with limited will be sharika altadamun ( solidar ( umumiy ) masuliyatli company); american journal of business management, economics and banking volume 12 may, 2023 p a g e | 193 www.americanjournal.org – ball at -tavsia albasita ( commandite sherikchiligi ); partner at-tavsia bilasham ( responsibility limited participation company ); sharika almuhassa ( ordinary partnership ); partner almutanaqis ( weak going partnership ). partnership this form the company ul-inan ( sides to the account of money etc formed partnership ) from the contract came came out this financial partnership is a form partnership at-tadamun ( jointly ( generally ) responsible company) in itself private partnership the form photo he turns to himself typical has the right (trademark ) . register as an established company it gets busy . sharika attavsia albasita ( commandite sherikchilik ) manager and passive ( independence limited b. j.) partners cover received private partnership shape in itself reflection makes _ this is it in partnership manager partners his own personal property with of the company obligations according to subsidiary responsibility undertake takes _ har of a passive partner obligation to him belongs to has been lots with is limited , but this commitment his personal property app not done . some of investors responsibility to them alternative payments present not enough restriction possible , such in case the company is a subsidiary liability and limited responsibility undertake received from partners consists of being remains . partner at-tavsiya biasham ( responsibility limited contribution company ) financial partnership shape in itself reflection makes _ here it is so companies to the action subscription equal to in the thigh shares with manager and passive partners in the presence of done is increased . sharika almuhassa private of the company from the forms one is , partners partnership that it was formed until , har of a potential partner financial situation and obligations according to personal property with answer give get ability they evaluate . mushoraka almutanaqis ( reduced going partnership ) partnership form be , then partners one other partner's the highest his ownership the right the whole in volume to himself passed until very , very slowly buy to get promise gives american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 210 www.americanjournal.org insurance relationships organize reach forms tugizova malika sokhib kizi 3rd year student of faculty of finance and accounting tashkent state university of economics., uzbekistan a b s t r a c t k e y w o r d s classification all joints insurance done increase forms cover takes mandatory and optional of the parties at will according to done to be increased insurance optional insurance is considered. optional insure conditions of the parties agreement basically is determined. rights and obligations of the insured and the insurer, as well as each insurance of type sure conditions belongs to insurance contracts with set is poured. voluntary insurance, demand reflection, liability insurance, mandatory insurance. introduction: general conditions of optional insurance types and procedures for its implementation insurance is reflected in the rules. rules of voluntary insurance types by insurers it is developed independently in accordance with legal requirements and carries out insurance activities increase to get the right insurance state activities by control from the issuing authority license get during agreed upon. compulsory insurance is carried out in accordance with the laws of the republic of uzbekistan. types of compulsory insurance, conditions and procedure for its implementation ministers of the republic of uzbekistan court by is determined. mandatory insurance done increase to the right state insurance organizations have being 413 of the cabinet of ministers of the republic of uzbekistan dated november 27, 2002 to the decision no. "on measures for further development of the insurance services market". any that has reached the amount of authorized capital equal to 500 thousand us dollars an insurance company has the opportunity to engage in compulsory insurance on the basis of a license (from january 1, 2010 in the amount equivalent to 1500 thousand euros). at the same time insurance organizations control over the preservation of objects that must be insured have the right to install. mandatory insurance insurance has been social (statewide) demand reflection makes state establishes the obligation of insurance for these purposes on the basis of legislation. the result of this as the law on the type of compulsory insurance is adopted. so it's mandatory insurance – the law in force is insurance. mandatory insurance, insurance organize reach shape as, generality as important has a characteristic. the object of compulsory insurance is life, health, property, civil liability with depended on proprietary interests is considered current in the day uzbekistan in the republic in practice has been mandatory insurance types the following includes: of passengers state mandatory personal insurance; on flights of participants state mandatory personal insurance; of the military state mandatory personal insurance; state compulsory personal insurance of workers in coal, oil, gas fields; tax state employees of the bodies compulsory personal insurance; railway equipment service provider and service pointer of employees state american journal of business management, economics and banking volume 12 may, 2023 p a g e | 211 www.americanjournal.org mandatory personal insurance; transport tools of the owners citizenship compulsory liability insurance; of auditors citizenship responsibility mandatory insurance; of notaries citizenship responsibility mandatory insurance and others. 1. mandatory insurance the law the way with is installed. that's it suitable respectively insurance doer belongs to objects to insurance, insurers while insurance events happened when giving belongs to insurance payments to pay they have to legislation usually the following set will give: mandatory insurance must has been objects content; insurance responsibility size; insurance supply level and standards; tariff rates amounts and them installation order; insurer and of the insured main right and obligations. 2. in the law shown mandatory insurance objects close to insurance coverage. for this purpose, the insurance authorities in the country every year insured objects, calculated insurance contributions and them installed in deadlines collection account take they go 3. in the law shown to objects mandatory insure automatic respectively application notification to the insurance authorities that the insured has a new object to give a must it's not. this object insurance to the field automatic respectively is added. the next one insurance that is taken into account during the registration period and payable to the insured contributions is displayed. 4. mandatory insurance insurance contributions from being paid strictly the act of looking. if the policyholder does not pay the appropriate insurance premiums, the premiums shall be paid through the court may be recovered. insurance liability for the object for which insurance premiums have not been paid will continue to apply, only the arrears of insurance premiums and penalties for late days amount holding will remain. 5. mandatory insure indefiniteness. mandatory insurance insured object there is has been of the period full in the part action does. 6. standardization of insurance provision under compulsory insurance. insurance simplification of assessment and insurance coverage procedure in relation to the insurance price for the purpose in percentages or one to the object in soums insurance of supply standards is determined. get insurance optional shape the following principles based on built. 1. optional insurance legislation based on and optional respectively action does. legislation defines the objects of voluntary insurance and the general conditions of insurance will give. specific conditions are insurance rules developed by insurers through in order is placed. 2. in insurance optional to attend full without only insured persons for is characteristic. if the insured's wishes do not conflict with the insurance rules, the insurer the object insurance from doing head weight to the right have it's not. this principle of the insured the first demand according to insurance contract structure guarantees. 3. optional coverage of optional insurance. all persons participate in it desire they don't tell. from this except contracts in making insurance conditions according to limitations too action does. 4. voluntary insurance is always limited to the insurance period. in this case, the deadline beginning and ending in the contract strictly agree is taken. from this come get out insurance coverage or sum insured only when the insured event occurs during the policy period is paid. continuity of voluntary insurance is only re-contracted for a new term only by way can be provided. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 212 www.americanjournal.org 5. optional insurance only one once or periodic insurance contributions only when paid action does. optional insurance of the contract to power entrance one once or based on the payment of the first insurance premium. next in long term insurance of your contribution non-payment as a result of the contract action to do stops. 6. optional insurance according to insurance supply the insured out of desire come comes out. proprietary insurance according to the insured insurance amount insurance price can set the limit. the sum insured for personal insurance is the parties to the contract agreement determined. a certificate of insurance (coi) form is a document that establishes proof of insurance. it lists you or your business as the policyholder or named insured. the form also specifies the type of liability insurance involved, the policy limits, and the effective dates of coverage, or policy period references: 1. абдурахимова н. развитие страхового бизнеса./биржа,24.05.2008, №66-67(857-858) стр.11 2. абдурахимова н. страховой рынок: по пути дальнейшего развития и совершенствования./биржа,10.05.2008, №60(851) стр.1 3. аскарова м. о перспективах развития рынка страховых услуг республики узбекистан.//ж. рынок, деньги и кредит, №2, 2009, стр.36-37 4. балабанов и.т., балабанов а.и. страхование. учебник для вузов спб.: питер, 2001. 256 с. 5. bekmurodov a.sh., g‘afurov u.v. o‘zbekistonda iqtisodiyotni liberallashtirish va modernizatsiyalash: natijalar va ustuvor yo‘nalishlar. o‘quv qo‘llanma. – t.: tdiu, 2007. 102 b. 6. bekmurodov a.sh., safarov b.j. qishloq joylarida savdo va xizmat ko‘rsatish sohalarini rivojlantirish yo‘nalishlari. o‘quv qo‘llanma. – t.: tdiu, 2007. 23 b. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 26 www.americanjournal.org classification of indicators of the budget system and treasury performance in the country mamayusupova shakhina ulugbek kizi tashkent state university of economics group of bn – 91 student of bachelor’s degree e-mail:shahinamamayusupova28@gmail.com mirdjamalov daler, abdullaev asrorjon tashkent state university of economics group of mgf – 01, student of 2-year master's degree a b s t r a c t k e y w o r d s each country has its own budget system and it has a financial policy. and here is the financial state budget system showing the mutual proportionality of state expenses and incomes for security will give. in addition, the annual national budget is a systematic financial document is the main factor that determines the purpose of poverty. also, the income of the country's local budget funds and budget funds that achieve cost proportionality and others. balance provides for an increase in the quality and rationality of distribution. funds of budgets of the budget system effective and rational spending control over state finances further development of the control system, specific target directions of budget funds regulation of spending, the main priorities of the budget policy is considered. finance, treasury, system, gdp, analyse, income, outcome, position, department, innovative, strategic. introduction when it comes to the financial major of the state, of course, the budget system and its safety, its importance and functions are understood. financial indicators are also a certain basis of the budget system. that is, the budget document system is implemented on the basis of financial digitization. certain monetary funds of the country include income and expenses. the state budget is the embodying financial document. budget system financial security is a very important principle for the country's development. apart from this, with increasing indicators of budget influence contains: budget size gdp distribution through the budget the problem of the budget deficit, its financing sources and volume, from the budget the scope of financing, the level of budget discipline, budget treasury execution and quality. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 27 www.americanjournal.org analysing the state’s budgetary system is special and utilizing new innovative methods for control the budget is one of the beneficial reason. performance budgeting aligns expenditure with the strategic goals and priorities of the government: • budget proposals are systematically linked to national, sectoral and regional development plans, government programme commitments and other statements of strategic direction and priority. • multi-year budget frameworks provide realistic and reliable fiscal parameters for the preparation of performance budgets. • the achievement of complex objectives, requiring inter-ministerial collaboration, is supported by the central government’s co-ordination of activities and budgets [1]. state’s budget also represents social and economic relations in the designated country. the state budget depends on the economic system of the society, the nature and activity of the state the total composition of revenues, income and expenses will be different. state economy, production, national in industrial enterprises income distribution and redistribution active intervention in the state budget causes the position, the national income is collected by the state and its part redistributed by the computer increases. the fy 2022 budget for treasury departmental offices (do) salaries and expenses (se) provides the necessary resources for the treasury department to tackle major issues confronting the u.s. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 28 www.americanjournal.org economy. funding is requested to continue to support pandemic response efforts, address climate change, income equality and racial equity, and restore the treasury department staffing levels to support key programs and address other emerging risks. this budget request and also includes increases for do’s it infrastructure, including replacements for servers that have reached the end of their lives, and modernization of it equipment and software that is used daily by do staff. this budget request also transitions treasury’s fleet management program by upgrading to electric vehicles and providing the infrastructure for do to maintain this posture[2]. the unity of the state system is important for the state. if two or other if there is a state budget system more than that, causing various inconveniences can come out. also, each regional structure has a budget system must be clear and integral. the most important aspect of the budget system is its forecasting and determining the income and expenses in certain numbers and the cash register unity is a prime example of this. the budget system of the state has been clearly defined in advance and the results of the analysis have passed will be. including its total income and expenses also. in some cases we have a question who is responsible for the planning and preparation of the budget? the responsibility for preparing the budget usually lies with the ministry of finance with input from the line ministries and some smaller spending agencies. this exercise is normally controlled by a central budget department located in the ministry of finance, or sometimes in a separate budget ministry. the character of central budget departments differs widely between countries, however. some are only responsible for preparing the current budget, excluding debt. in such cases, the capital budget may be prepared by a planning or development ministry (or even at a higher level in the prime minister's or president's office), while the debt service costs are assessed (and paid) by another entity. some budget departments are in charge of preparing the entire budget, although not involved in implementation of the budget. others have a say on expenditure commitments, and some are also in charge of monitoring budget execution. it is therefore important to know the precise responsibilities of the budget department. it is particularly useful to know if the budget department is responsible for supplying partial or complete data on budget preparation, expenditure commitments, and full budget execution data. in many developing countries, only partial data on budget preparation may be available in the budget department. it is important that all data on the current budget, the capital budget, and the debt service (including data on secondary and tertiary tiers of government) are consolidated to ensure that, in total, they are consistent with macro objectives. in some countries, research departments of the central bank may carry out this task [3]. below, in cbo’s projections, the federal budget deficit (adjusted to exclude the effects of shifts in the timing of certain payments) decreases from 12.4 percent of gross domestic product (gdp) in 2021 to 3.9 percent this year and to 3.7 percent in 2023. the projected shortfall increases to 6.1 percent of gdp in 2032—significantly larger than the 3.5 percent of gdp that deficits have averaged over the past 50 years. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 29 www.americanjournal.org rising interest rates and mounting debt cause net interest outlays to double as a percentage of gdp over the coming decade—from 1.6 percent in 2022 to 3.3 percent in 2032. so, adjusted to exclude the effects of timing shifts, primary deficits (which exclude net interest costs) increase from 2.3 percent of gdp in 2022 to 2.9 percent in 2032, exceeding their 50-year average of 1.5 percent of gdp in each year of the projection period over[4]. funds of budgets of the budget system effective and rational spending control over state finances further development of the control system, specific target directions of budget funds regulation of spending, the main priorities of the budget policy is considered. this, in turn, is the long-term strategic reforms of the state one of the important factors for setting directions and achieving the intended goals is considered. in conclusion, it should be said that each country has a budget system means that the financial policy of the state is systematic, and the budget system is its it is difficult to imagine without processes of formation of control. thorough, the prepared annual budget document is the basis of the country's financial development. each country has its own budget system and it has a financial policy. and here is the financial state budget system showing the mutual proportionality of state expenses and incomes for security will give. in addition, the annual national budget is a systematic financial document is the main factor that determines the purpose of poverty. also, the income of the country's local budget funds and budget funds that achieve cost proportionality and others. balance provides for an increase in the quality and rationality of distribution. country budget financial security of the system is important and necessary as well. references: 1. oecd best practices for performance budgeting 23 november 2018 2. international monetary fund international website 3. the budget and economic outlook: 2022 to 2032 4. aktam burkhanov “financial security” 2019. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 134 www.americanjournal.org improvement of methods of managing assets and liabilities of commercial banks ismatov bakhriddin kutbidinovich bank-finance academy 70411302-business administration (master of business administrationmba) 2nd year correspondence student a b s t r a c t k e y w o r d s this article talks about commercial banks, methods of managing their assets and liabilities, and ways to improve them. assets and liabilities, profitability, commercial banks, resource base, economy, eminent the further fate of any process is based on its thorough analysis. in the era of the market economy, banks are the lifeblood of the economy, as the president noted, and regulation and coordination of their activities is considered one of the most important issues. continuous analysis of commercial banks' activities in a consistent, deep and scientifically based way, ensuring the stability of their activities is of great economic importance. commercial banks are large credit institutions that provide universal banking services to enterprises, organizations, citizens, accounts, payment operations, attraction of deposits, keeping deposits, granting loans, as well as operations in the stock market. on the basis of various forms of ownership of banks state-owned, state joint-stock, open and closed joint-stock companies are established. asset operations of commercial banks banks deploy the resources at their disposal to obtain profit and maintain their liquidity, that is, to ensure financial stability. active operations include resource allocation operations. commercial banks are involved in various types of active structures. asset and liability management (alm) of commercial banks consists of technical tools and methods that consider and manage the creation of value for shareholders and control of risks. and they use alm techniques to get more profit by reducing the losses caused by operations. active operations are secondary to passive operations. are loan funds, the bank should structure its active operations in such a way that the time limit: the return of money to the bank corresponds to the period of their return to customers. assets of commercial banks are objects that reflect the use and distribution of the commercial bank's resources on the balance sheet. as a rule, bank assets are formed as a result of active operations these are operations on the distribution of own funds in order to obtain income, ensure bank activity and maintain liquidity. commercial banks receive the largest part of their income from active operations. when classifying the composition of assets according to the leading types of banking activity, the following can be distinguished: 1. credit operations occupy the first place in bank operations; 2. in the second place, investments in securities; 3. the third is money; american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 135 www.americanjournal.org 4. the share of other assets comes from the specific features of accounting, so it can cover operations from investments in fixed assets to various settlement operations. the process of asset management is formed directly from the management of balanced funds based on three main indicators: profitability; risk level; liquidity. there are three main methods of asset management in banking: the general fund method absolutely all available resources are combined in ofs (general funds of funds), and then they are divided into different groups of assets depending on the goals of the credit organization, as well as the principles of liquidity. the disadvantage of this method is that it does not take into account the time and sources of receiving money, therefore, the effective operation of the bank depends on the management skills. this method is usually considered a method for small banks. the method of money exchange or distribution of assets eliminates the shortcomings of the first method. the sources of funds, depending on the specified period, go to some departments of the bank, and then these departments themselves distribute these sources to the relevant assets. scientific management method asset management by means of scientific methods and operations analysis includes the use of the most modern models and the latest mathematical equipment to study the interrelationship between various items of the bank balance sheet. nowadays, real estate, insurance guarantee of another bank or insurance organization can be accepted as collateral for loans given by commercial banks. lending process occupies the main place in asset operations of commercial banks. one type is fund operations. in addition, there are also bank investments in securities, in which case the bank buys securities from various issuers and a portfolio of bank securities is created. depends one of the necessary requirements for a commercial bank to start its activity as an independent entity is that the bank has its own potential at the level of demand. therefore, the operation of banks requires, first of all, the availability of a sufficient amount of bank resources. requires. the efficient management of passive operations of any commercial banks creates the basis for the perfect organization and efficient use of bank resources. the generated resources are used to ensure the commercial and economic activities of commercial banks. in the conditions of the market economy, the passive operations of commercial banks, its structure and volume increase, its effective management is important. the formation of the resource base of commercial banks includes not only attracting new customers, but also constantly changing the structure of resource sources. it is considered a component of the rational use of bank assets and liabilities. the following are included in the composition of commercial banks' own funds through their passive operations: 1) share capital; 2) additional capital; 3) reserve capital; 4) retained earnings; 5) revaluation surplus. the most important problem for commercial banks is to ensure that the management of assets and liabilities is consistent with the conditions between the resources involved and their placement. in american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 136 www.americanjournal.org short, the methods of asset and liability management in the activities of such banks are at a high level, and their improvement opens wide opportunities for the state economy. references 1.t.m.karaliyev, o.b.sattarov, i.f.sayfiddinov –tijorat banklari faoliyati tahlili.toshkent , iqtisod – moliya: 2013. 2.i.m. alimardonov ,r.i.shomurodov ,j.k.majidov –tijorat banklari aktiv va passivlarini boshqarish.darslik.2021. american journal of business management, economics and banking issn (e): 2832-8078 volume 4, | sep., 2022 p a g e | 14 www.americanjournal.org new trends in marketing management: conceptual framework arshi naim department of information system, king khalid university, ksa arshi@kku.edu.sa a b s t r a c t k e y w o r d s marketing management identifies market opportunities and comes out with appropriate strategies for exploring those opportunities profitably. it has to implement marketing program and evaluate continuously the effectiveness of marketing-mix. it has to remove the deficiencies observed in the actual execution of marketing plans, policies, and procedures. it looks after the marketing system of the enterprise. management is the process of getting things done in an organized and efficient manner. marketing management aims at efficient operation of marketing activities. marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. marketing management, like all other areas of management comprises of the function of planning, organizing, directing coordinating and controlling. this research article presents the conceptual framework of marketing management. marketing management, marketing mix, planning, organizing, directing, coordinating, controlling. introduction marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system. before proceeding to examine some of the details of this process, comments on two aspects will be helpful background. marketing management is “planning, organizing, controlling and implementing of marketing programs, policies, strategies and tactics designed to create and satisfy the demand for the firms’ product offerings or services as a means of generating an acceptable profit.” it deals with creating and regulating the demand and providing goods to customers for which they are willing to pay a price worth their value. marketing management performs all managerial functions in the field of marketing. marketing management identifies market opportunities and comes out with appropriate strategies for exploring those opportunities profitably. it has to implement marketing program and evaluate continuously the american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 15 www.americanjournal.org effectiveness of marketing-mix. it has to remove the deficiencies observed in the actual execution of marketing plans, policies, and procedures. it looks after the marketing system of the enterprise. institute of marketing management, england, has defined marketing management as “marketing management is the creative management function which promotes trade and employment by assessing consumer needs and initiating research and development to meet them. it co-ordinates the resources of production and distribution of goods and services, determines and directs the total efforts required to sell profitably to ultimate user”. figure 1 presents the comprehensive picture of marketing. figure 1: comprehensive picture of marketing the marketing concept which is also called the modern marketing concept as practiced by most of the firms in the present situation is actually a combination of all the other concepts. the modern marketing concept consists of an integrated effort on the part of the marketer to identify the consumer needs and satisfy them through appropriately designed products and for this task use all the marketing techniques related to product, selling, market study, consumer behavior, product designing, pricing etc. literature review the marketing concept is simple in principle but often very difficult, if not impossible, to fully implement. adam smith’s comment cited above is most consistent with it. the concept is that a company can more effectively serve its own objectives if it will integrate the various aspects of its marketing activities explicitly so as to meet the preferences of its customers. to one unfamiliar with company practice the need for implementing the concept and the capacity to do it would seem to be so obvious as not to merit discussion. this process of marketing management takes place “somewhere” within the marketing system. having seen the marketing system portrayed, you know that “somewhere” can be within any of the many, many companies manufacturing, wholesaling and retailing that make it up. marketing management is practiced in every one of them. assume, to simplify, that we are concerned only with the manufacturing level in a direct sense because the manager we are considering occupies a marketing management position there. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 16 www.americanjournal.org traditionally, markets were viewed as a place for exchange of goods and services between sellers and buyers to the mutual benefit of both. today, marketing is exchange of values between the seller and the buyer. value implies worth related to the goods and services being exchanged. the buyer will be ready to pay for the goods if they have some value for him. marketing is the business function that controls the level and composition of demand in the market. it deals with creating and maintaining demand for goods and services of the organization. according to philip kotler, “marketing management is the art and science of choosing target markets and building profitable relationship with them. marketing management is a process involving analysis, planning, implementing and control and it covers goods, services, ideas and the goal is to produce satisfaction to the parties involved”. marketing management involves: 1. the setting of marketing goals and objectives, 2. developing the marketing plan, 3. organising the marketing function, 4. putting the marketing plan into action and 5. controlling the marketing programme. marketing management is both a science as well as an art. those responsible for marketing should have good understanding of the various concepts and practices in marketing, communication, and analytical skills and ability to maintain effective relationship with customers, which will enable them to plan and execute marketing plans. continuous practice in the areas of personal selling, sales promotion, advertising, etc. would enable them to become artists. scientific and artistic aspects of marketing would influence each other, leading to a new generation of marketing managers. this concept advocates that a manufacturer should begin his task with the consumer focus. he has to primarily study the consumer and understand the needs, desires, requirements and conveniences of the latter. a manufacturer should design a new product or improve an existing one strictly keeping in mind the needs, desires etc. of the consumer. the product should exactly satisfy the consumer. therefore, a manufacturer should design and manufacture a product which will be accepted by the consumer rather than the one which can be manufactured by him easily. a consumer is basically fastidious and fickle minded. this makes that task of understanding the consumer and designing an appropriate product much more difficult, however this is the only way a manufacturer can succeed in a competitive market. selling should be preceded by customer study, marketing research and product development. the entire focus should be on the consumer and his needs. “there will always, one can assume, be need for some selling. but the aim of marketing is to make selling superfluous. ideally marketing should result in a customer who is ready to buy. all that should be needed then is to make the product or service available” as explained by peter drucker. this concept is also called customer orientation. “the marketing concept is a customer orientation backed by integrated marketing aimed at generating customer satisfaction as the key to satisfying organizational goals”. – philip kotler american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 17 www.americanjournal.org “modern marketing concept is a corporate state of mind that insists on the integration and co-ordination of all marketing functions which in turn are welded with the other corporate functions for the basic objective of producing maximum long range corporate profits” given by felton. the following are the features of marketing concept i. focus on customer needs – the needs of the consumer are studied and these become the basis of all product related activities such as designing, pricing, distribution, packaging etc. ii. providing consumer satisfaction – every organization aims at providing maximum consumer satisfaction by understanding his needs and designing an appropriate product. the success of an organization is directly related to the consumer satisfaction it provides. iii. integrated marketing management – marketing management is only a part of the total managerial functions of an organization such as finance management, production management, human resources management etc. all these functions are integrated in order to provide maximum satisfaction to the consumer. thus all the functional areas of an organization are integrated. iv. achieving organizational goals – modern marketing states that an organization must aim at maximizing consumer satisfaction and in the process enable itself to achieve its goals such as growth, market share and reasonable amount of profit or return on investment. v. innovation – innovation is an important tool to provide consumer satisfaction. innovative methods must be used to understand the consumer, design an appropriate product and offer it to the consumer. figure 2 explains the modern marketing concept, integrated marketing concept, customer orientation. figure 2: modern marketing concept, integrated marketing concept, customer orientation discussion and analysis of conceptual framework marketing management features: managerial process, consumer centric, research analysis, planning and development american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 18 www.americanjournal.org 1. managerial process: marketing management is a managerial process involving planning, organising, decision making, forecasting, directing, coordinating and controlling. stanley vance defines management as the process of decision making and controlling. every aspect of marketing, starting with identifying the consumer’s need and wants, identifying the targeted customer, product planning, development, pricing, promotion, distribution process requires planning, decision making, coordination and controlling. 2. consumer centric: all marketing activities are consumer centric. the consumers are the king. marketing activities are based on the premise of “make what the market wants”. the principal objective of marketing is to create new customers and to retain current customer. marketing management performs the task of converting the potential customers into actual customer. this is possible through satisfaction of customer’s needs and wants by delivering them, appropriate goods and services according to their needs and wants, at right time and through convenient channel. 3. research analysis: the basis function of marketing is identification of consumer’s needs and wants .this requires continuous and systematic collection of data, analysis and reporting of data relevant to marketing activities. this helps the management to understand consumer’s needs, wants, preferences and behaviour of the consumer towards firm’s marketing mix strategies. this helps in forecasting and planning future course of action. 4. planning and development: marketing involves planning and development of goods and services. organizations make a continuous endeavor towards planning, development and innovation of product and services so as to meet the changing demand, taste and preferences of the consumers. 5. building marketing framework: marketing activities are not just selling and distribution of ownership of goods and services from the producer to the ultimate consumer. but it involves a series of activities like research analysis, production, development and innovation, advertisement and promotion pricing decision, selling and distribution, customer relationship and after sales service. all these functional areas of marketing must be effectively planned, organised and built effectively to achieve best results. marketing structure depends upon the size of the enterprise, geographical coverage of the operation, number of product lines, nature of product, size of customers. 6. organizational objectives: all marketing activities are based on overall organisational objectives. the marketer bridges the gap between overall organisational objectives of achieving high profit and maximization of sales and consumer’s interest of satisfying needs. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 19 www.americanjournal.org 7. promotional and communication process: the ultimate objective of a firm is to maximise sales volume and profit. this can be achieved through promotion and communication about the goods and services. this function of marketing management enables the firm to provide information about the product to the customers. 8. controlling of activities: marketing management performs the function of controlling of marketing activities. marketing management evaluates the effectiveness of marketing activities, to judge the efficiency of marketing personnel and the plans. this process involves measuring the actual performance with the standard and identifying the deviations and taking corrective actions. figure 3: marketing management features: managerial process, consumer centric, research analysis, planning and development marketing management importance: analyzing market opportunities, determination of target market, planning and decision making marketing management smoothen the process of exchange of ownership of goods and services from seller to the buyer. 1. analysing market opportunities: marketing management collects and analyses information related to consumer’s needs, wants and demands, competitor’s marketing strategies, changing market trends and preferences. this helps to identify market opportunities. 2. determination of target market: marketing management helps to identify the target market that the organization wishes to offer its product. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 20 www.americanjournal.org 3. planning and decision making: marketing management helps to prepare future course of action. planning relates to product introduction, diversification. decision making regarding pricing, selection of promotional mix, selection of distribution channel is taken by the marketing management. 4. creation of customer: consumers determine the future of the market .therefore providing the best product to the consumer according to their preference is the important task of marketing. marketing management helps in creation of new customers and retention of current customers. 5. helps in increasing profit: marketing caters to the varied and unlimited needs of consumers. marketing management helps to increase profit and sales volume. this is achieved by expansion of market and increasing customers. 6. improvement in quality of life: marketing management aims at providing innovative product and services to the customers. marketers continuously strive to incorporate new technology and mechanism in their product to provide more satisfaction to customers than before. this improves quality of life and makes life of consumers easier than before. 7. employment opportunities: marketing process is a combination of different activities like research work to assess the marketing environment, product planning and development, promotion, distribution of product to customers and after sales service. marketing process requires researcher, production engineer, different distribution intermediaries, sales personnel also creates employment opportunities in advertisement section. thus marketing management opened up different employment avenues thus creating employment opportunities. figure 4: marketing management for target market american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 21 www.americanjournal.org marketing management functions: assessing the marketing opportunities, planning the marketing activities, organizing the marketing activities marketing is related to markets and therefore marketing management calls for integration of the various elements of market. it has the task of organising these elements into an effective operating system so that it can serve both customer and business enterprise effectively. various functions of marketing management are: 1. assessing the marketing opportunities: determination of marketing objectives and assessment of the marketing opportunities for the firm, is an important function of marketing management. the constantly changing market conditions and opportunities make it imperative for the marketing management to come out with planned progammes to meet the challenges, and reap the opportunities. 2. planning the marketing activities: planning is an important managerial function. planning of marketing activities is a crucial task and involves numerous steps. it involves planning effective strategies to achieve the desired marketing objectives. it is concerned with formulation of policies relating to product, price, channels of distribution, promotional measures, forecast of target sales etc. planning provides the basis for an effective marketing for the enterprise. 3. organising the marketing activities: another significant function of marketing is organising it implies determination of various activities to be performed and assigning these activities to right person, so that marketing objectives are achieved. in the light of the changing concept of marketing, it is necessary that the organisation structure is flexible and accommodative. this will help in better interaction between organisation and environment. 4. co-ordinating different activities of enterprise: even the best of planning will not be rewarding if there is improper coordination between different activities of the organisation. marketing involves various activities and these are inter-related and interdependent. product decisions, pricing strategies, channel structure research activities all require proper coordination. only then the objectives can be achieved. 5. directing and motivating the employee: a good direction is a must for effective performance of marketing functions. direction helps in rightful performance of the work. different leadership style are practised to guide the subordinates. a leader directs his subordinates and ensures through effective supervision, that the performance is as per planned specification. at the same time, it is necessary that employers are properly motivated. motivation not only helps in better performance by the employee but also holds him back to the organisation for longer periods. these days organisations are very serious as far as their motivation policies are concerned. new ways of motivation are being introduced so that the employee gives his best of services. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 22 www.americanjournal.org 6. evaluating and controlling marketing efforts: in order to have a profitable venture, marketing manager must on a continuous basis, evaluate the marketing efforts. this will help him in knowing the deficiencies if any, which can be corrected beforehand only and proper adjustments can be made with the changing environment. controlling is a managerial function concerned with comparison of actual performance with the standard performance and locating the shortcomings if any, finally corrective measures are taken to overcome the shortcomings. figure 5: steps of marketing planning marketing management process involves the following: 1. managerial marketing process starts with the determination of mission and goals of the entire enterprise and then defines the marketing objectives to be accomplished. 2. evaluate corporate capabilities on the basis of our strengths and weaknesses. 3. determine marketing opportunities which have to be capitalized. we have to identify and evaluate unsatisfied and potential customers’ needs and desires. market segmentation will enable us to select target markets on which we can concentrate our efforts. marketing opportunities are influenced by marketing environment, competition, government policies, mass-media, consumerism, public opinion, distribution structure, etc. figure 6: planning and process of marketing management american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 23 www.americanjournal.org 4. once the company has full information regarding marketing opportunities, they can formulate marketing strategies in the form of dynamic action-oriented formal plans to achieve mission, goal, and objectives. a strategy is a pattern of purposes and policies, a planned course of action in pursuit of clearly stated objectives in the face of limited resources, and intelligent competition. marketing strategy points out the level, mix, and allocation of marketing efforts in marketing action plans. the company has appropriate marketing-mix for each target market. the marketing-mix is expected to sell more than competitors. 5. marketing action plans or program are to be implemented through proper communication, coordination as well as motivation of marketing personnel. 6. performance according to plan is duly assured by effective marketing control. an effective control system is essential to measure and evaluate the actual results of the marketing strategy. the results are evaluated against our desired objectives. feedback of evaluation enables marketing management to revise, adopt, or modify goals and objectives and re plan on the basis of feedback of evaluation. 7. marketing process is on-going or dynamic and it must adapt itself to the ever-changing environmental needs. conclusion marketing program starts from the product concept and it does not end until customer wants are adequately satisfied. profitable sales over the long-run and repeat-purchase by customers are vital to success in marketing. marketing research and marketing information service alone can act as effective tool in all decisions of marketing management. marketing policies cover marketing analysis and research, product analysis, marketing channels, personal selling, sales promotion and advertising, pricing and non-price competition. references 1. naim, a., sattar, r. a., al ahmary, n.., & razwi, m. t. (2021) implementation of quality matters standards on blended courses: a case study. finance india indian institute of finance vol. xxxv no. 3, september 2021 pages—873 – 890 2. naim, a. (2021). application of quality matters in digital learning in higher education. texas journal of multidisciplinary studies, 1(1), 3-12. 3. naim, a., & alahmari, f. (2020). reference model of e-learning and quality to establish interoperability in higher education systems. international journal of emerging technologies in learning (ijet), 15(2), 15-28. 4. naim, a., alahmari, f., & rahim, a. (2021). role of artificial intelligence in market development and vehicular communication. smart antennas: recent trends in design and applications, 2, 28. 5. naim, a., hussain, m. r., naveed, q. n., ahmad, n., qamar, s., khan, n., & hweij, t. a. (2019, april). ensuring interoperability of e-learning and quality development in education. in 2019 ieee jordan international joint conference on electrical engineering and information technology (jeeit) (pp. 736-741). ieee. 6. naim, a., khan, m. f., hussain, m. r., & khan, n. (2019). “virtual doctor” management technique in the diagnosis of ent diseases. joe, 15(9), 88. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 24 www.americanjournal.org 7. naim, a. (2020). realization of diverse electronic tools in learning and teaching for students with diverse skills. global journal of enterprise information system, 12(1), 72-78. 8. naim, a., & bashir, a. (2016). application of quality matters standards on supportive and online module in higher education program. research revolution, 5(3), 6-12. 9. naim, a. 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(2022). factors of consumer behaviour of youth from middle-east when purchasing organic food. global scientific review, 3, 1-7. https://ejird.journalspark.org/index.php/ejird/article/view/10 https://americanjournal.org/index.php/ajbmeb/article/view/7 https://scholar.google.com/scholar?oi=bibs&cluster=9607033831195978893&btni=1&hl=en https://americanjournal.org/index.php/ajset/issue/view/4 https://ejird.journalspark.org/index.php/ejird/article/view/10 http://www.scienticreview.com/index.php/gsr/article/view/13 https://journalzone.org/index.php/bjgesd/article/view/45 https://americanjournal.org/index.php/ajtas/article/view/11 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 26 www.americanjournal.org 39. arshi naim. (2022). understanding the customer centric approach to add value to social ecrm (secrm). british journal of global ecology and sustainable development, 4, 1–17. retrieved from https://journalzone.org/index.php/bjgesd/article/view/45 40. https://journalzone.org/index.php/bjgesd/article/view/45 41. arshi naim. (2022). in view to higher education, interoperability of reference model for e learning and quality development. neo scientific peer reviewed journal, 1, 73–93. retrieved from https://neojournals.com/index.php/nspj/article/view/4 42. arshi naim. (2022). assessment techniques to achieve students’ learning outcomes: objective questions versus subjective questions. neo scientific peer reviewed journal, 1, 1–10. retrieved from https://neojournals.com/index.php/nspj/article/view/2 43. arshi naim. (2022). measurement of electronic commerce effectiveness. neo science peer reviewed journal, 1, 1–10. retrieved from https://neojournals.com/index.php/nsprj/article/view/6. 44. arshi naim. (2022). learning management systems facilitated to prevail over challenges faced in higher education program. neo science peer reviewed journal, 1, 76–84. retrieved from https://neojournals.com/index.php/nsprj/article/view/8. https://journalzone.org/index.php/bjgesd/article/view/45 https://journalzone.org/index.php/bjgesd/article/view/45 https://neojournals.com/index.php/nspj/article/view/4 https://neojournals.com/index.php/nspj/article/view/2 https://neojournals.com/index.php/nsprj/article/view/6 american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 19 www.americanjournal.org ways of developing students' technological thinking skills mukhitdinova jamilakhon ruslanovna namangan state university. senior lecture mjamila73-11@yandex.ru a b s t r a c t k e y w o r d s the development of the ability to adapt to the innovations of the modern world, to actively participate in the processes of preparing the younger generation for the life of a constantly updating society and improving it in accordance with the requirements of the time is an important professional task of a teacher of a higher educational institution. this article discusses the development of students' thinking abilities with the help of creative technologies. technology, creativity, education, upbringing mental abilities, teacher, educational institution. in our country, as a result of consistent reforms in the field of man, his comprehensive maturation and well-being, creating conditions for the realization of his interests, bringing the quality and effectiveness of education to a new level, opportunities are being created for the widespread introduction of the development of creative abilities of students based on interactive teaching methods. in the strategy of actions for the further development of the republic of uzbekistan priority tasks such as ”further improvement of the system of continuing education, increasing the availability of quality educational services, support and realization of the creative and intellectual potential of the younger generation" have been identified. accordingly, the development of creative abilities of students on the basis of interactive teaching methods becomes important. the analysis of the literature shows that the creative potential of a person can manifest itself in such skills as an independent view of a problem, contradictions, critical thinking; the ability to analyze any problems, analytical thinking; the ability to find solutions for them; the ability to translate the acquired knowledge, skills and teaching methods into a new state; the ability to integrate previously learned methods into new ones. flexibility of thinking is the realization that the accepted and traditionally existing in society, in fact, template directions and principles that are considered correct, can no longer meet modern progress, a sense of new directions and measures, the ability to think through and formulate them, the ability to restructure their activities and mobilize for new directions of solving the issue. forecasting, while the ability to predict the prospects for the development of one's field is the thinking of foreseeing the nature of changes, the causes of their occurrence and the timing of their occurrence through the analysis of thinking. mailto:mjamila73-11@yandex.ru american journal of business management, economics and banking volume 10 march, 2023 p a g e | 20 www.americanjournal.org for example, the growth and decline of labor productivity, changes in the conjuncture or market, as well as the impact of these changes on the industry, growth, falling prices, etc. the development of creativity among students requires an appropriate organization of the educational process, depending on the level of knowledge of students, the level of assimilation, the source of education, didactic tasks in the assimilation of learning content. at the same time, the following pedagogical conditions must be observed: providing an environment for identifying students' inclinations to master creative activity, the formation of cognitive needs and the manifestation of independence in the learning process; creating favorable opportunities for creative thinking among students, education tolerates the diverse thoughts and ideas expressed by recipients, and ensures their activity in the learning process, encouraging everyone establishment of the student's confidence in his ability to think creatively, regular stimulation of his creative activity; individualization of the educational process based on the characteristics, needs and intellectual potential of the student; individual, subgroup and team work skills of students to form, expand their creative abilities, encourage them to make non-standard decisions along with ready-made, standard solutions in solving problems; reengineering of cognitive knowledge in practice, which is the basis for the development of creative activity selection and application of interactive forms and methods of teaching, allowing to develop and improve, etc. researcher g. ibragimova described the stages of creativity development in students in the process of interactive learning:: 1. reproductive risk stage. this stage is creative for students , the activity is characterized by the determination of the propensity for creative activity and creativity, awareness of the essence of innovative technologies in education and the birth, formation of new ideas. 2. creative and research stage of research. training is determined by the formation of students' skills of research, creative activity, non-standard thinking, cognitive independence, improvisation, innovation. 3. the stage of creativity, innovation. practical application, evaluation of the created innovation, includes processes related to analysis, popularization and widespread implementation, as well as the preparation of strategic plans focused on the future. in the process of developing students' creative abilities, an interactive educational process is important. interactive learning is a system of teaching methods based on the “subject-subject” relationship, which organizes the learning process based on interaction, based on the needs of activating the cognitive activity of the learner. at the same time, interaction is based on such principles as the activation of students, reliance on group experience, and the establishment of feedback. so, creativity among students by means of interactive teaching methods and technologies is an important condition for the development of learning abilities based on the creation of a free creative environment in the educational process, joint relationships and joint actions of teachers, teachers and students is to start the process. a number of factors contributing to the development of students' creative abilities are available, some of them can be listed below: develop creative thinking skills, form creative activity, teach strengthening research and problem research areas in the process; american journal of business management, economics and banking volume 10 march, 2023 p a g e | 21 www.americanjournal.org creative problem solving and creative activity of students organization of development situations; professionally necessary and promising experience of creative activity of students; achievements of their approaches as a component of the content of professional activity; the process of developing professional skills and abilities of students orientation to development based on work on interactive methods and technologies, implementation of independent creative activity in them, obtaining independent knowledge, self-education, self-knowledge, positioning, activation of students' independent work skills, achieving their creative thinking in the process. creativity characterizes a person as a whole or his specific characteristics. creativity is also reflected as an important factor of talent. in addition, creativity determines the sharpness of the mind, “ensures the active involvement of students' attention in the educational process.” teachers, as well as specialists of all industries in foreign countries, increasingly determine the presence and level of quality of creativity in themselves. for this they are e.p. it was founded by torrens in 1987 and passes a test that determines whether a person has creative thinking. this test determines the creativity of a person and her level of activity in the organization of creative activity, quick thinking allows you to judge by criteria such as original (original) work and perfection. here are the answers to the questions offered to students, he must meet four criteria. e.p. torrence believes that the concept of ”creativity" is based on the following: promotion of a problem or scientific hypotheses; verification and modification of the hypothesis; identification of the problem based on the formation of the results of the solution; the juxtaposition of knowledge and seminar efforts in finding a solution to the problem -sensitivity to resistance. in conclusion, we can say that the content of the development of creative abilities in students is analyzed on the basis of the requirements of the dts and the essence of such key concepts as “creativity”, “creativity”, “pedagogical creativity”, “interactive learning”, “conditions of interactive learning”, “development of creative abilities in students” is revealed. references 1. ўзбекистон республикаси президентининг 2017-йил 7-февралдаги “ўзбекистон республикасини янада ривожлантириш бўйича ҳаракатлар стратегияси тўғрисида”ги пф– 4947-сон фармони // ўзбекистон республикаси қонун ҳужжатлари тўплами, 2017 й., 6-сон, 70-модда. 2. бубенов а.в. коммуникационная культура: философско-методологический анализ электронный ресурс.: дис. канд. философ, наук. м., 2006. 3. барышева т.а., жигалов ю.а. психолого-педагогические основы развития креативности. спб, 2006. – с. 285. 4. guilford j.p. (1950) creativity, american psychologist, volume 5, issue 9, 444–454. 5. ибрагимова г.н. интерфаол укитиш методлари ва технологиялари асосида талабаларнинг креативлик кобилиятларини ривожлантириш. / монография. – т.: “фан ва технологиялар”, 2016. – б. 77. 6. maslov a. the farther reaches of human nature ny: viking, 1971. harmondworth, eng: penguin books, 1973. contents. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 22 www.americanjournal.org 7. хуторской а. ключевые компетенции как компонент личностноориентированной парадигмы образования // народное образование. – 2003. – № 2. – с. 58–64 8 . younas, t., tayyaba, n., ayub, a., & ali, s. (2021). textile fabric's and dyes. tekstilna industrija, 69(3), 47-59. 9 . gusmawan, m. w. a., sitawati, s., & karyawati, a. s. (2022). the effect of paclobutrazol concentrations in different shade levels on coleus plant leaves color. jurnal teknik pertanian lampung (journal of agricultural engineering), 11(4), 647-657. 10 . akramov, k., & mukhitdinova, j. (2020). the importance of obtaining natural dyes. asian journal of multidimensional research (ajmr), 9(5), 424-435. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 82 www.americanjournal.org ways to ensure sustainable growth of commercial banks' loans khasan akhmedov independent researcher a b s t r a c t k e y w o r d s ensuring the stable growth of commercial bank loans is one of the necessary conditions for improving the practice of financing investment costs of enterprises of the real sector of the national economy. therefore, in the 2020-2025 strategy for reforming the country's banking system, ensuring stable and moderate growth of bank loans is recognized as one of the priority areas of banking system reform. in the article, the problems related to ensuring the stable growth of loans of the country's banks are identified and scientific proposals aimed at solving them are developed. commercial banking, loan, loan portfolio, classified loans, problem loan, income, interest income, interest rate, inflation, deposit. introduction improving the lending practice of commercial banks in the republic of uzbekistan is one of the urgent issues of developing the country's economy. in particular, in the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025, lending only based on market requirements, reducing the dependence of banks on state resources, improving the quality of the credit portfolio and the quality of risk management, and adhering to a moderate level of growth in the volume of lending are the priorities of the strategy of reforming the country's banking system. recognized as directions [1]. this, in turn, creates the need to ensure the stable growth of commercial banks' loans. analysis of literature on the topic according to j. sinki, the main activity of banks is to finance loans through deposits. however, if previously banks were considered only as intermediaries in the process of distribution of financial resources, at the current stage of economic development, they can be considered as enterprises engaged in the production of information and provision of operations [2]. according to huerta de soto's conclusion, the decrease in the interest rates of investment loans of commercial banks turns previously unprofitable investment projects into profitable investment projects, and as a result of the financing of investment projects by banks at the expense of loans that are not secured by voluntary funds, there are cases of failure of investment projects and non-return of given loans [3 ]. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 83 www.americanjournal.org according to v.kayukov and a.kayukov, in order to improve the mechanism of providing enterprises with bank loans by banks, it is necessary to strengthen the resource base of commercial banks, to ensure the proportionality of banks' assets and liabilities according to their size and duration [4]. according to o. lavrushin's conclusion, short-term lending for a large object within the credit line has the following advantages for large enterprises: is given only to legal entities; the bank's clients are only large enterprises; borrowers are enterprises with a constant need for short-term resources; the main account of the borrowers of this loan is in the lending bank; credit is granted only to financially reliable customers [5]. according to j. gudl's conclusion, the negative impact of the coronavirus pandemic on the lending practice of banks is manifested in the liquidity problem in banks as a result of non-return of loans. in order to solve this problem, firstly, the quality of loans guaranteed by the british government is 330 bln. set to guarantee the pound sterling; secondly, the bank of england set the lowest discount rate (0.1%) in its 325-year history on march 19, 2020 [6]. according to a group of chinese economists, lowering the interest rates of loans by reducing the mandatory reserve requirements of the central bank will play an important role in mitigating the negative impact of the consequences of the corona virus pandemic on the lending practices of commercial banks. people's bank of china on march 13, 2020 550 bln. announced that it would reduce its reserve requirements in order to free up funds in the amount of 70.3 billion yuan. in this regard, the rate of one-year loans to creditworthy corporations was reduced to 0.1%, and the rate of five-year loans was reduced to 0.05% [7]. according to o. sattarov's conclusion, the high level of reserve allocations intended to cover losses from loans is a negative situation from the point of view of ensuring the stability of commercial banks [8]. according to the conclusion of l. muradova, it is necessary to increase the level of diversification of the credit portfolio of commercial banks by setting the limits of the crediting sector, which provides for restrictions on lending to certain industry enterprises, which make up 25% of the credit portfolio of commercial banks [9]. according to n. jumaev's conclusion, the deepening of the problem of indebtedness on international loans is determined by the low efficiency of using international investment loans [10]. analysis and results in the banking practice of developed countries, banks have established a comprehensive use of credit forms for lending to enterprises, and leasing loans and syndicated loans are widely used to finance their investment costs. in addition, the provision of a standard level of loan loss reserves has a positive effect on their lending potential. also, in developed countries, paying attention to the level of diversification of the credit portfolio plays an important role in preventing the level of credit risk from exceeding. for example, us banks strictly adhere to the principle of diversification of the loan portfolio. therefore, the weight of loans given to enterprises of one branch in the loan portfolio of commercial banks of this country does not exceed 25 percent. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 84 www.americanjournal.org low and stable loan interest rates are one of the primary prerequisites for ensuring stable growth of commercial banks' loans. we evaluate the stability of interest rates on deposits and loans of russian commercial banks using the data in the table below (table 1). table 1 average annual interest rates of deposits and loans of commercial banks of the russian federation in national currency-rubles, in percent[11] indicators 2017 2018 2019 2020 2021 interest rate of deposits 8,2 5,9 5,6 4,1 4,4 interest rate of loans 12,1 10,5 9,5 8,3 8,8 from the data presented in table 1, it can be seen that in 2017-2020, the average interest rate of deposits received by the commercial banks of the russian federation in national currency tended to decrease. this downward trend is explained by the fact that the average interest rate of loans granted by commercial banks in the national currency during this period has a tendency to decrease. in addition, the average interest rates of deposits and loans of russian commercial banks in 2021 decreased significantly compared to 2017. these circumstances are positive from the point of view of ensuring the investment attractiveness of commercial banks. table 2 average annual interest rates of deposits and loans in national currency by commercial banks of the republic of uzbekistan, in percent [12] the average annual interest rate of deposits with a maturity of up to 1 year in national currency 14,2 14,9 16,1 16,3 15,5 average annual interest rate of loans in national currency 16,2 21,1 23,7 22,3 20,8 from the information presented in table 2, the interest rates of deposits attracted by commercial banks in the national currency and loans granted in the national currency were relatively high in 2017-2021. table 3 loan loss provisions at bank of america (usa). quantity and level [13] indicators 2017 2018 2019 2020 2021 amount of loan reserve, mln. us dollars 3396 3282 3590 11329 4594 the level of reserve allocations for loans in relation to gross assets, % 0,1 0,1 0,1 0,4 0,1 from the data presented in table 3, it can be seen that bank of america's loan loss provisions have had an increasing trend in 2018-2020. this is a negative situation from the point of view of improving the bank's credit services. however, in 2021, the level of this indicator has significantly decreased compared to 2020. from the data presented in table 3, it can be seen that the level of loan loss provisions at bank of america in relation to gross assets was stable in 2017-2021 (except for 2020). this is a positive situation from the point of view of improving the bank's credit services. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 85 www.americanjournal.org figure 1. profitability of loans at jsc "asakabank" and jsc "turonbank" [14] from the data of figure 1, it can be seen that the profitability of loans in asakabank increased significantly in 2021 compared to 2017. however, in 2020 compared to 2019, this indicator decreased. from the data of figure 1, it can be seen that the profitability of loans in turonbank increased significantly in 2021 compared to 2017. however, in 2020, this indicator significantly decreased compared to 2017. conclusions and suggestions during the research, we formed the following conclusions: assessment of the stability of interest rates of deposits and loans *in 2017-2020, the average interest rate of deposits accepted by the commercial banks of the russian federation in the national currency was observed to decrease, which is explained by the fact that the average interest rate of the loans granted by the commercial banks in the national currency during this period had a tendency to decrease; * the interest rates of deposits attracted in national currency by commercial banks of our republic and loans granted in national currency were relatively high in 2017-2021; from the data presented in table 3, it can be seen that bank of america's loan loss provisions have had an increasing trend in 2018-2020. this is a negative situation from the point of view of improving the bank's credit services. however, in 2021, the level of this indicator has significantly decreased compared to 2020. * the fact that the level of reserve allocations intended to cover losses from loans in bank of america in relation to gross assets was stable in 2017-2021 is a positive situation from the point of view of improving the bank's lending practices; * in asakabank, the profitability of loans increased significantly in 2021 compared to 2017, while in turonbank, the profitability of loans increased significantly in 2021 compared to 2017. in our opinion, the following measures should be implemented to ensure the stable growth of commercial bank loans of our republic: 1. in order to improve the quality of the credit portfolio of commercial banks, first, it is necessary to lower the cost of loans by introducing modern banking technologies into the lending practice; secondly, it is necessary to ensure the balance between interest income from loans and interest expenses on time deposits; thirdly, it is necessary to prevent deterioration of the structure of classified 3.3 4.2 6.5 6.3 6.4 8.1 7.6 7.8 7.7 9.4 0 2 4 6 8 10 2017й. 2018й. 2019й. 2020й. 2021й. асакабанк туронбанк american journal of business management, economics and banking volume 12 may, 2023 p a g e | 86 www.americanjournal.org loans in order to prevent the excess of reserve allocations intended to cover losses from loans granted to enterprises. 2. in order to improve the resource provision of loans of commercial banks, first of all, time deposits should be exempted from mandatory reserve requirements; secondly, it is necessary to support the emission operations of commercial banks related to valuable securities by means of monetary policy and tax policy instruments of the state. literatures 1. decree of the president of the republic of uzbekistan dated may 12, 2020 no. pf-5992 "on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025" //www.lex.uz. 2. sinki dj. financial management and commercial banking and industrial financial management. per. english m.: alpina business books, 2007. 1018 p 3. huerto de soto jesus. dengi, bank credit and economic cycles. per. english chelyabinsk: sotsium, 2008. 666 p. 4. kayukov v.v., kayukov a.v. sovershenstvovanie mezhnashka obespecheniya promyshlennyx predpriyatiy kreditnymi risursami//trudy volnogo ekonomicheskogo obshchestva rossii. moscow, 2007. volume #86. s. 135-145. 5. lavrushin o.i. short-term credit for a large object and predelakh credit line. banking case. pod ed. prof. o. lavrushina. m.: knorus, 2016. s. 430. 6. goodell j.w. covid-19 and finance: agendas for future research // finance research letters. 2020. vol. 3. r. 103-105. 7. xin e., leung k., xu st., jiang f. top ten issues for directors of commercial banks amid covid19: building a better working world. china: ernst & young, 2020. 10 p. 8. sattarov o.b. improving the methodology of ensuring the stability of the banking system of the republic of uzbekistan. i.f.d. science narrow take three. destiny eat diss. autoref. tashkent, 2018. b. 25-26. 9. muradova l.f. ways to increase the profitability of commercial banks' assets in the conditions of modernization of the economy of uzbekistan. i.f.b.f.d. diss. autoref. tashkent, 2018. b. 22. 10. jumaev n.kh. improving the methodology of regulating currency relations in uzbekistan. i.f.d. science narrow take three. destiny eat diss. autoref. tashkent, 2018. b. 26. 11. statistical bulletin banka rossii//www.cbr.ru (tsentralnyy bank rossiyskoy federatsii). 12. interest rates of deposits and loans in national currency//www.cbu.uz (central bank of the republic of uzbekistan). 13. bank of america. sheet. annual reports. 2017, 2018, 2019, 2020, 2021// http://www.bankofamerica.com 14. jsc "asakabank". annual reports. 2017, 2018, 2019, 2020//www.asakabank.uz; jsc "turonbank". annual reports. 2017, 2018, 2019, 2020//www.turonbank.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 67 www.americanjournal.org renewable energy investments in the gulf cooperation council countries and the challenges they face dr. mohammed khairy tawfiq hamed al sheikh abdullah the arab academy for management, banking and financial sciences a b s t r a c t k e y w o r d s this study aims to demonstrate renewable energy investments in the countries of the cooperation council for the arab states of the gulf and the challenges they face. nuclear stations such as the emirati barakah nuclear plant and the nuclear plant that will be built by king abdullah city for atomic and renewable energy, which aims for the peaceful use of nuclear energy, which is considered one of the largest renewable energy projects in the region as a whole. full on power generation by traditional methods of oil and gas. renewable energy, gulf cooperation council, arab gulf countries, challenges. introduction: diversifying sources of income across non-oil sectors is considered one of the most important pillars of the economic plans of the gulf cooperation council countries 2030, especially investment in renewable energy projects. building and constructing nuclear plants such as the uae’s barakah nuclear power plant and the nuclear power plant to be built by king abdullah city for atomic and renewable energy, which aims for the peaceful use of nuclear energy, which is considered one of the largest renewable energy projects in the region as a whole, where the remarkable growth and increase in the volume of government investment in renewable energy projects contributes to not relying entirely on power generation by traditional methods of oil and gas, which will positively reflect many benefits on the economy the state, especially the environmental sector in the countries of the cooperation council for the arab states of the gulf. in 2010, renewable energy provided nearly 17% of total global energy consumption. nearly 8% of this total came from modern sources of renewable energy, including hydro, wind, solar, geothermal, biofuels, and modern biomass. in the energy sector, renewable resources provided nearly 20% of the world's electricity, including 15% generated using hydropower.(emirates center for strategic studies and research, 2013). statistics indicate that the countries of the cooperation council for the arab states of the gulf are among the countries that consume the most electric energythe demand for electricity is growing7% annuallyon average since the year 2000 ad, when electricity consumption increased from 81 gigawatts in the year 2005 ad to 140 gigawatts in the year 2015 ad until it reaches 180 gigawatts in the year 2020 adthis means that there is a need to double production once every decade, which is expensive and not easy at the same time. the production of electricity from renewable energy sources american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 68 www.americanjournal.org would provide more crude oil and gas for export purposes, and thus enhance opportunities to raise the level of public treasury revenues. the countries of the cooperation council for the arab states of the gulf relied almost entirely on gas, crude oil and some of its heavy derivatives as fuel for power generation and water desalination plants. and its production of natural gas by exploration for it(shihab el din, 2011) . in april of 2018, the kingdom of bahrain announced the discovery of a large resource of light shale oil, the quantities of which are estimated to be many times the bahrain field, in addition to the discovery of large quantities of natural gas, which is the first discovery since 1932. the production of the gulf cooperation council countries reached 17.1 million barrels of oil per day and 370 billion cubic meters of liquefied natural gas during the year 2012. the gcc countries have the largest reserves of oil in the world, estimated at 496 billion barrels, equivalent to 34% of the total. it also owns 21% of the world's gas reserves, and it ranks second in the world after russia, with gas reserves of 42.2 trillion cubic meters (general secretariat of the gulf cooperation council), and wowa report issued by the "diplomatic center for strategic studies" stresses the need for the gulf countries to invest in renewable and alternative sources of energy, not only to meet their needs, but also to maintain their position and competitiveness in the global oil market, considering this approach as a "strategic choice" in light of the rapid growth witnessed by those countries in energy demand, especially electricity. (diplomatic center for strategic studies),https://dcsscenter.org/business_economy_report/energy_report.php almost 3% trillion dollars, which is more than the gross domestic product of the economies of chile, south africa and switzerland combined. achieving the necessary development in the sector will not only result in reducing global warming, but will also contribute to reviving the economy, enhancing human well-being and providing more job opportunities. enriching renewable energy sources to achieve the gulf goals and plans will reduce energy and water consumption by 50% in the united arab emirates, 23% in the kingdom of saudi arabia, and 21% in the state of kuwait, and will reduce the carbon footprint per capita in the region by 8%. the shift to investing in renewable energy leads to a 16% reduction in water consumption in the gulf energy sector, given that renewable sources, especially solar photovoltaic systems, may be less water consuming than fossil fuel technologies.(gulf link magazine, 2018). it is widely expected that the cost of production associated with renewable energy sources will decline in the coming years. due to the development of technology and the high levels of production,it is reassuring that the gcc countries have set targets to benefit from renewable energy sources up to a year2030,due to the need for proper planningdespite the abundance of solar energy in the gcc countries, which calls for more attention to its development and expansion of its use as one of the sources of electricity production and water desalination, its contribution will remain limited due to its frequent nature and the variation in its supply throughout the day and year. its contribution will be limited to complementary tributaries to electricity generation and water desalination during times of peak demand during the day, especially in the summer, to provide fuel from gas, oil and its derivatives, as solar energy can constitute an economically competitive future for thermal stations designated to meet peak loads. in all cases, it is not expected that its contribution will exceed 20% of the total electricity consumption after about two decades. on the other hand, nuclear energy is today one of the best options for generating electric power centrally. after more than two decades of stagnation, the https://dcss-center.org/business_economy_report/energy_report.php https://dcss-center.org/business_economy_report/energy_report.php american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 69 www.americanjournal.org world is witnessing, since the third millennium, an increasing interest in expansion. in the use of nuclear energy to generate electricity in industrialized and developing countries alike. this is due to several factors, the most important of which is the improvement of safety and security techniques and systems for nuclear plants and the accumulation of technical expertise. nuclear stations have also become the best in terms of operating ratio compared to other stations, and their fuel prices are stable and relatively low (goic, 2012).. therefore, the importance of this research comes from the limited applied studies of renewable energy investments in the countries of the cooperation council for the arab states of the gulf and the challenges they face in light of the continuous growth of large projects undertaken by the countries of the cooperation council for the arab states of the gulf in renewable energy of all kinds (solar energy, wind energy and nuclear energy). . this study aims tothe following: 1learn about the concept of renewable energy and its characteristics (advantages and disadvantages). 2investigation efficiency consumption energy renewable in countries council cooperation for countries gulf arabic. 3knowledge highlighted challenges that face energy renewable. 4identify on investments countries council cooperation for countries gulf arabic in projects energy renewable. 5knowledge of the most prominent renewable energy projects in the countries of the cooperation council for the arab states of the gulf, and determining the percentage of renewable energy generation from them. 6coming up with conclusions that contribute to the development of renewable energy in the gcc countries. renewable energy energy in life is divided into renewable energy and non-renewable energy, as non-renewable energy is represented in natural gas and oil and is formed in limited quantities in the ground and over long years, and its combustion results in a lot of pollution, while renewable energy is inexhaustible energy such as energy the sun, water energy, wind, etc. are clean and do not cause pollution when used, so the tendency to use them has become greater. there is also nuclear energy, which is also a renewable energy source.(emirates center for studies and research, 2009), asblgthe volume of investments in the renewable energy sector for the countries of the cooperation council for the arab states of the gulf from the year 2013-2017 ($ 218.1 billion).wherethe value of solar energy generation projects8.5billion dollars in generating capacity4 gagewowaccording to the official website of masdar city (https://masdar.ae/ar/about-us/management/about-masdar). investments in the countries of the cooperation council for the arab states of the gulf thatthe economic concept of investment it is one of the operations of exploiting capital with the aim of achieving a financial surplus, and accordingly some define it as the formation and use of capital with the aim of achieving profit in the short or long term, directly or indirectly.andin order for it to be said that there is an investment project from an economic point of view, three conditions must be met: 1class: it means the participation or contribution made by the investor within the framework of the investment project in the host country, and this investor is required to be a person of private law, whether a natural or legal person.,this share may be in kind or cash. https://masdar.ae/ar/about-us/management/about-masdar american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 70 www.americanjournal.org 2the element of time: it means that a period of time of no less than three years must pass in the life of the project in order for it to be considered an investment project in the economic sense. the lesson in that is the distinction between investment operations and commercial operations. 3the element of risk: it means the possibility of making a profit and the possibility of achieving a loss, and it also means within the framework of distinguishing between the commercial business that the profitability of the project is achieved in a periodic and recurring manner, increase or decrease, while the commercial project is often achieved in which the profitability is achieved in one go. (abdel moneim, 2001). investments in the gulf cooperation council countries are distributed in infrastructure projects, power generation, water and sanitation projects, in addition to huge investments in industrial cities, in addition to investment in the telecommunications and transportation sectors, investment in the industrial sector such as iron and steel industries and aluminum industries, in addition to investments in the real estate and housing sector. and food industries and agricultural industries aimed at providing food commodities from external sources, and the contribution of the gulf private sector is 70% of the total number of gulf projects, and therefore it represents a basic pillar of investment, as it contributes a major role in various fields, through the processes of establishing various development projects financing, ownership, operation, management and production, through partnership initiatives between the public and private sectors, and the trend towards privatizing many government projects, while adopting economic policies that are more open to the world by joiningto the world trade organization and the establishment of financial centers with the aim of attracting international financial institutions and multinational companies to establish investment projects in the region, unctad, 2011)). american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 71 www.americanjournal.org renewable energy first: solar energy it is the energy that is generated by taking advantage of the sun's rays, as scientists have proven that the solar energy that falls on the earth every 40 minutes is sufficient to meet our energy needs by 100% for a whole year. says the british chemistgeorge porterhe won the nobel prize in chemistry in 1967.i have no doubt that we will succeed in harvesting solar energy, and if sunlight were weapons of war, we would have had solar energy decades ago." calculations indicate, through actual monitoring using ground stations, that the gcc countries are characterized by a length of sunshine that reaches about 3200 hours per year, with an average of 9 hours of sunshine per day and suitable wind speeds (an average of 7 meters at a height of 100 meters), which qualifies them to invest in the sources of this energy (radiation, heat and wind) and converting it into electricity effectively, whether by producing it on its own or leasing its lands to friendly european, american or asian countries to install a system that supplies these countries according to a fee per kilowatt hour, which generates income for them and a solution to energy security in them and in those countries and this is what france does, where it produces electricity from the energy of the core and sells it to its neighbors. solar energy is economically feasible if the vertical solar radiation rate is 5 kilowatt-hours per square meter, as it reaches 7 kilowatt-hours per square meter in the gulf region.(al-fadil, 2010). figure 1 solar panels advantages of solar energy 1solar energy is a clean and renewable energy source. 2solar energy can be produced for free, by installing solar cells. solar energy will last forever, while it is estimated that the global oil reserves will last between 30 and 40 years only. 3solar energy does not cause anypollution. 4solar cells make absolutely no noise compared to the giant machines used to pump oil, which are very noisy and unwieldy. 5solar cells don't need a lot of maintenance to keep them running, because there are no moving parts in a solar cell, which makes it impossible to damage. 6in the long term, we can get good investments with a high return due to the amount of free energy that solar cells can produce, and it is estimated that 50% of the energy used for domestic purposes will be produced from solar cells. https://www.albdel.com/18869 https://www.google.com/imgres?imgurl=http://arabic.solarcell-panel.com/photo/pl20274858-anti_pid_18v_solar_panel_monocrystalline_solar_module_24_m_s_wind_pressure.jpg&imgrefurl=http://arabic.solarcell-panel.com/sale-11021364-anti-pid-18v-solar-panel-monocrystalline-solar-module-24-m-s-wind-pressure.html&docid=onk021s6comxkm&tbnid=eoivigvuitrrtm:&vet=12ahukewit6n_fwuhkahuki8mkhdviaaa4yaeqmyhemer6bagbeec..i&w=700&h=500&itg=1&bih=643&biw=1366&q=%d8%a7%d9%84%d8%a3%d9%84%d9%88%d8%a7%d8%ad%20%d8%a7%d9%84%d8%b4%d9%85%d8%b3%d9%8a%d8%a9&ved=2ahukewit6n_fwuhkahuki8mkhdviaaa4yaeqmyhemer6bagbeec&iact=mrc&uact=8 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 72 www.americanjournal.org conssolar energy 1-solar cells are expensive to install, which has led to a delay of several years to use solar energy and achieve the desired investments. 2-electricity generation is completely dependent on which countries get sun, and this can be limited by the countries climate. 3-solar power plants do not match the power output of conventional power plants of similar size; it is also very expensive to build. 4-solar energy is used to charge batteries so solar powered devices can be used at night, and these are oftenbatteriesbig and heavy, they take up a lot of space and need to be replaced from time to time(gulf interconnection authority, 2018). second: nuclear energy nuclear energy is considered one of the sources of clean energy and is complementary to other renewable energies, as it can provide basic load energy and provide energy requirements in peak hours, as it is the type of energy that is the source of the atomic nucleus. it is common for it to consist of atoms that differ in terms of their content according to the element. as each element has distinct seeds. they are arranged in what is called the periodic table of the elements. an atom is a nucleus with negatively charged electrons orbiting it. the nucleus consists of positively charged particles called protons, or other neutral particles (that do not carry an electric charge) called neutrons (al-hafeez, 2019). despite the abundance of solar energy in the gcc region, its contribution will remain limited due to its frequent nature and varying intensity throughout the day and year. its contribution in the coming first decades will be limited to as a complementary tributary to electricity generation and water desalination during times of peak demand during the day, especially in the summer, to provide fuel from gas, oil and its derivatives, as solar energy can constitute an economically competitive future for thermal stations designated to meet peak loads. in all cases, it is not expected that its contribution will exceed 20% of the total electricity consumption after about two decades. on the other hand, nuclear energy is today one of the best options for generating electric power centrally. after more than two decades of stagnation, the world is witnessing, since the beginning of the third millennium, an increasing interest in expanding the use of nuclear energy to generate electricity in industrialized and developing countries alike. this is due to several factors, the most important of which is the improvement of safety and security techniques and systems for nuclear plants and the accumulation of technical expertise. nuclear stations have also become the best in terms of operating ratio compared to other stations, and their fuel prices are stable and relatively low, and with the rise in global oil and gas prices in the past decade, the economic competitiveness of nuclear energy electricity production has improved to become the cheapest for the existing and planned ones, especially with the increase in their lifespan to reach 60 years old. in addition, the safe disposal of radioactive nuclear fuel waste and its safe disposal in geological reservoirs for thousands of years has become a given today, technically and economically, as these reservoirs have been established in sweden and finland. nuclear stations are distinguished by the fact that the amount of nuclear fuel required to generate a large amount of electrical energy is much less than the amount of coal or oil needed to generate the same amount. for example, one ton of uranium generates more electrical energy than that generated by using millions of barrels of oil or millions of tons of coal. also, if solar energy was relied upon to https://www.albdel.com/6442 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 73 www.americanjournal.org generate most of the world's energy needs, its cost would be much greater than the cost of nuclear energy (shihab el-din, 2011). well-functioning nuclear power plants produce the least amount of waste compared to any other method of power generation, as they do not release harmful gases into the air such as carbon dioxide, nitrogen oxide or sulfur dioxide that cause global warming, acid rain and smog. fuel (uranium) is abundant and dense, and is easy to extract and transport, while coal and petroleum resources are limited. it is possible that the nuclear power plants will continue to provide us with energy for a long time after the failure of coal and oil sources to meet our needs. nuclear power plants occupy relatively small areas of land compared to power plants that depend on solar energy or wind energy. while several negative aspects of the use of nuclear energy result in the production of highly radioactive waste, after most of the uranium (spent fuel) is fission, it is removed from the reactor and stored in cooling lakes, and these lakes absorb the heat of the spent fuel and reduce the degree of radioactivity, then it is reprocessed from in order to recover the non-fissile uranium and plutonium and use them again as fuel for the reactor, and this process results in waste with a high level of radioactivity.hlw(spent fuel is routinely reprocessed in reactors of defense programs for use in nuclear weapons production, according to the epa.)epa) the highly radioactive waste (hlw(caused by defense programs constitute more than 99% of the total volume)hlw) in the united states of america. france, belgium, russia and the united kingdom all have their own spent fuel reprocessing units. according to the international atomic energy agency (iaea)iaeaestimates of the end of 1997 indicate that the amount of spent fuel resulting from power reactors that are stored globally, which exceeds 130,000 tons, contains about 1,000 tons of plutonium, and some elements in spent fuel and waste, such as plutonium, are of the same importance. high radioactivity and remain so for thousands of years. there is currently no safe system for the disposal of this waste. the proposed plans for the disposal and storage of highly radioactive waste do not guarantee adequate protection for individuals or groundwater from radioactive contamination (al-hafeth, 2019). the number of nuclear power plants in the world, according to iaea data, reached 437 reactors by the end of 2009, with a total capacity of about 370 gigawatts. the largest number of them are located in north america, europe and japan, respectively. the percentage of the contribution of electric energy to the total electricity production varies in these countries. it rises to about 80% in france, which is considered one of the countries most dependent on nuclear energy, and it has 55 operating reactors, while its contribution in the united states of america is less than 20%, while it has the largest number of nuclear reactors (104) and the largest production capacity ( al-hafeez, 2019). nuclear energy in the countries of the cooperation council for the arab states of the gulf the newly prepared feasibility studies conclude that nuclear power stations in the gcc countries are the most economically viable, compared to traditional central power stations, in the event that the average oil price exceeds $45 per barrel or the gas price exceeds $7.$5 per million british thermal units, and the main determinant of the cost of electricity production in nuclear plants is the capital cost, which represents about 75% of the total cost of electricity production, and the rest is for operation and the cost of the entire fuel cycle, unlike fossil plants in which the cost of fuel is the main determinant of the cost (from 60-70%), and in this context came the announcement of the supreme council of the cooperation council at the jaber summit (december, 2006) to start preparing a joint study for the countries of the cooperation council for the arab gulf states to find a joint program in nuclear american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 74 www.americanjournal.org technology for peaceful purposes (electricity generation and water desalination). in accordance with international standards and regulations, the preliminary feasibility study prepared by the agency in cooperation with the general secretariat of the council concluded that the use of nuclear energy to produce electricity and water desalination in the countries of the cooperation council for the arab states of the gulf is one of the least expensive options in the future in the event of a shift in the current fuel pricing policies user at stationsenergy from the cost price to the net benefit price, which reflects the actual value of the fuel prices used(shihab eldin, 2011). third, wind energy wind energy is defined as that energy that results from the process of exploiting wind movement and converting it into another form to become a form of energy based on wind turbines. it is often used for the purposes of generating electric power, and is included in the list of types of electromechanical energy and types of renewable energy alternative to fossil fuels.electric power generationcountries have resorted to establishing wind farms. it is a series of wind turbines in one area to produce electricity, and their number may reach hundreds of individual turbines distributed in one area that extend over large areas with the possibility of using the space between these turbines for agricultural purposes, and these turbines take the same shape, as they have a rotating horizontal axis it has three blades that go against the wind. (scientific knowledge website ,www.marefa.org) figure 2 wind turbines on land the pros and cons of wind power 1advantages of wind energy 1. it greatly preserves the environment, as it is based on reducing carbon dioxide emission rates. 2. this energy is also free from all pollutants related to nuclear plants and fossil fuels. 3. this energy is also very inexpensive, in a matter of weeks an entire air farm can be made and contain large towers. 4. in addition to the fact that this energy is renewable, the wind is based on moving the turbines for free. 5. never be affected by fluctuations in fossil fuel prices. 6. you also do not need to dig and excavate in order to be extracted or even transported to the locations of the generating stations. 2disadvantages of wind energy https://weziwezi.com/%d9%83%d9%8a%d9%81%d9%8a%d8%a9-%d8%aa%d9%88%d9%84%d9%8a%d8%af-%d8%a7%d9%84%d9%83%d9%87%d8%b1%d8%a8%d8%a7%d8%a1/ https://www.marefa.org/%d9%85%d9%84%d9%81:wind_power_plants_in_xinjiang,_china.jpg american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 75 www.americanjournal.org 1. wind energy cannot supply the transport sector with the energy extracted from it, which leads to the dependence of the transport sector on oil products only. 2. although the winds are renewable, they are not permanent but seasonal, and in many times the wind speed does not correspond to the required electric power. 3. and the wind turbines of this power are so noisy that they cannot be overlooked. a single wind farm or windmill can make such a loud and boisterous noise in only twenty-four hours that it is absolutely unbearable. (scientific knowledge website ,www.marefa.org) challenges facing renewable energy 1. operational challenges david fridley summarized nine of the challenges facing (alternative energy), ie alternatives to existing petroleum liquids such as biofuels, unconventional hydrocarbons, and electricity generation alternatives. in fridley's view, the assumption that alternative energy technologies can be seamlessly built on top of the existing energy system structure is highly questionable. the alternative energy challenges identified include: 1material input requirements: examples include neodymium for lightweight magnets for wind turbines, galleon and indium for solar cell wafers (enium is also a component of flat panel displays and reserves are limited). all alternative energy systems require inputs from fossil fuels. 2intermittent: the release of energy from fossil fuels can be controlled at a controlled pace. in contrast, solar energy, wind energy, and even biomass experience daily and seasonal fluctuations. capacity factors range from 12% to 19% for solar pv, from 20% to 40% for wind power, and from 60% to 100% for fossil fuels and nuclear power. the key to addressing intermittence is storage, but batteries face limitations in terms of materials, energy density and losses. 3energy intensity: it is a challenge for liquid fuels to replace oil and gas in transportation, and there are huge land use demands for solar, wind, and biomass to generate equivalent amounts of energy compared to fossil fuel-based power generation. 4the law of receding horizons: the more energy required to produce alternative energy, the lower the equivalent prices (corn ethanol and oil shale). 5the return on energy investments (the ratio of energy inputs to its production): while the performance of wind energy, and to a lesser extent solar energy, is relatively good in terms of its return on investment, there is difficulty in achieving a surplus of alternative energy such as unconventional hydrocarbons and biofuels. 6the need for advances in energy storage to address the challenge of intermittence. new research on an old concept, liquid air, aims to address the need for in-grid storage and uses (false time) energy to liquefy the air to -196°c. upon exposure to ambient temperatures, the rapid expansion of air powers a turbine. (technology and the future of energy, 2013). 2. security challenges. the concept of energy security is not a new concept, and its beginnings go back to the decision of winston churchill, who was the first to define it. and with the incidents that the international system witnessed, such as the arab oil embargo crisis in 1973 ad and the iranian islamic revolution in 1979 ad, which resulted in a significant rise in oil prices, interest in this concept increased globally, especially in the united states of america and the major industrialized countries consuming energy globally, and its importance increased. with the increase in terrorist threats after the eleventh of american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 76 www.americanjournal.org september, targeting oil installations(abdel-aty, 2014). especially the terrorist attacks that took place on the aramco oil facility on september 14, 2019, which disrupted crude oil supplies, which are estimated at 5.7 million barrels per day. the international energy agency defines energy security as “continued stability at affordable prices, with continued concern for environmental issues” (iea). the goal of achieving energy security at the international level was behind the establishment of the agency, as the main objective of its establishment is to develop effective mechanisms to implement policies related to the issue of energy security that are implemented on the basis of joint cooperation between the countries of the international community, and the agency believes that energy security has several faces, as it is in the long term, it is mainly linked to continuing investments in energy supplies, in line with economic developments and environmental needs. in the short term, energy security means the response of the global energy market to sudden changes in demand and supply. given the importance of energy security at the national and global levels, the international energy agency has worked to enhance energy security through the following means: 1collective coordination to respond to changes in supply and demand. 2expanding international cooperation with all players in the global energy market. the determinants of energy security are also linked to a number of determinants and challenges that affect national and global energy strategies, which force countries to adopt different policies and use different tools at different times at the national and international levels. the most prominent of these challenges are: 1the imbalance of supply and demand in the global energy market from an economic perspective. 2power supply restrictions. the challenges that international oil companies face, which can be summarized in three main challenges that limit their capacity and effectiveness in the producing countries, and thus the energy supply in the global market are as follows: the first challenge: it is represented by the security threats that its employees, facilities, areas of work and assets may be exposed to, such as the terrorist attacks that occurred on the aramco oil facility on september 14, 2019. the second challenge: the threats that may result from political developments that expose or threaten the investment contracts of international energy companies(abdel-aty, 2014) the establishment of the world energy forum in 2005, which was based in the saudi capital, riyadh, to enhance energy security is considered a constructive step in enhancing energy security. in the field with countries of the european union, the international energy agency and the group of twenty, in addition to the producing countries outside opec, such as norway, mexico and russia, working hand in hand in securing a safe flow of supplies through dialogue and enhancing transparency in the dissemination of information and data will make it one of the goals of achieving security of supplies. (abdul wahab, 2012). 4. energy security and national security of the state energy security is considered one of the components of the national security of the state, and its preservation and protection has become no less important than protecting the state’s lands against any external aggression in light of the international competition over energy sources and control over them. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 77 www.americanjournal.org with the beginning of the eighties, energy security was given a military character, to use hard power as a means to ensure stability in the regions that produce oil and natural gas, which was stated by former us president jimmy carter in 1980 ad in his response to the soviet invasion of afghanistan in 1979 when he stated that the united states would use any means necessary, including military force, in defending its vital interests in the persian gulf to ensure the flow of oil, as energy security in the 1970s and 1980s was only concerned with ensuring the security of energy supplies from oil, especially after the crises of 1973 and 1979.(abdel-aty, 2014). the researcher believes that despite the existence of military integration (the joint defense agreement, the joint security agreement, and the joint defense strategy) in the countries of the cooperation council for the arab gulf states in confronting and deterring any terrorist threats or danger that may occur, international organizations, especially the international energy organization (irna), must the un security council must also (open an international investigation urgently directly from the occurrence of the terrorist threat) and the need to take deterrent and strict measures and international political, economic and military sanctions by the seven permanent members of the un security council against any threat or danger that occurs to energy sources, especially in the arabian gulf region, regardless of the type of this facility, whether it is oil or renewable, and in particular the recent sinful and terrorist attack on the aramco oil facility on september 14 of this year is a major challenge to global energy security. investment trends in renewable energy sources what has changed significantly since the international energy agency's 2003 assessment is the investment expectations in renewable energy sources, especially non-hydroelectric ones. in 2003, the agency did not provide a breakdown of investment according to the type of renewable energy, as it expected the implementation of total investments of $561 billion ($710 billion in 2010). with regard to renewable energy (including hydro) over a period of 27 years. however, the agency increased its forecast in 2012 for renewable energy investments to $6.4 trillion over the next 23 years to 2035, with 94% of the electricity sector ($2.1 trillion for wind, $1.5 trillion for hydro, and 1 $3 trillion for solar photovoltaic (pv) and the rest for biofuels. in 2003, the agency told policymakers that in order to encourage renewables, governments would have to put in place a market framework that rewards those who invest in renewables (in other words, governments would have to frame subsidies so that renewables become economically viable). the world economic forum recently urged governments to show leadership with global financial institutions and private investors to address the green investment gap. however, in 2012, the international agency issued a warning about the growing allocations of subsidies for renewable energy sources, amounting to $ 3.5 trillion, as a quarter of this amount has already been allocated, while it is scheduled to allocate about 70% by 2020. the agency warned that governments should limit these subsidies to avoid them becoming an excessive burden on governments and end users. the united nations environment program, based on the bloomberg new energy financing base, issues an annual briefing on trends in (investing in renewable energy) known as the global status report on renewable energy sources, within the framework of the renewable energy policy network for the 21st century. they are a useful source of information on trends. perhaps the sudden growth in the capabilities of renewable energy sources referred to in the aforementioned global status report, as well as the enthusiasm that some government leaders possess in favor of renewable energy sources, is american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 78 www.americanjournal.org understandable given the attention given by the media, environmental ngos and the public in general to (greening the economy). ,(technology and the future of energy, 2013). partnership agreements between gulf companies and foreign companies the countries of the gulf cooperation council carried out economic reforms and improved the investment climate, which made them characterized by distinct investment climates and an attractive economic environment, which encouraged and stimulated investments and national capital to survive and continue, and various statistics show that traded companies have the largest share in the field of gulf investments, followed by family companies, followed by companies owned by the governments of the countries, and the partnership between gulf and foreign national companies in pioneering sectors such as saudi aramco’s agreement withdaw chemicalsestablishing the largest petrochemical complex in the world, with a value ranging between (18-20 billion dollars), in addition to partnership agreements between kuwait petrochemical company and its counterpart in china.sinopec, to implement a joint project for petrochemical refining at a value of 8.7 billion dollars. in the united arab emirates, the agreement was concluded betweenmulkrenewable energy incadityain the transportation sector, there are giant gulf-foreign partnership projects such as the abu dhabi metro project at a cost of $7 billion, and theunion railat a cost of $60 billion to establish an interconnected gulf railway network, in addition to joint projects between the gulf steel company and its japanese counterpart.unctad (2011),. investments of the cooperation council for the arab states of the gulf in renewable energy projects 1renewable energy investments in the kingdom of saudi arabia. the new economy of solar energy works to develop saudi expertise and finds job opportunities for them. according to the energy research center at king abdullah bin abdulaziz university, the kingdom's goal is to reach the production of 10% of its need for solar energy by 2020, and about a third of its energy need from renewable sources in the year 2032, equivalent to 41,000 megawatts of electrical energy, by harnessing solar energy. achieving this goal will require an investment of about $109 billion during the start-up period of the project. the most important shift in the use of renewable energy is the decision of the saudi water desalination corporation, which represents one of the largest energy-consuming sectors in the kingdom, noting that the corporation owns 30 desalination units throughout the kingdom and a network of pumping stations, tanks and pipes that transport desalinated water from desalination plants to centers main consumption. 1. water desalination project, where the saudi water desalination corporation signed a threephase contract in 2010 to generate 10 megawatts of solar cells with nato technology to produce water at a price of 33 halalas per kilowatt hour at a cost of 1.5 riyals per cubic meter, as the cost of water is currently 2.5 to 5.5 one riyal per cubic meter, provided that concentrated solar cells are used in the third phase (saline water conversion corporation,https://www.swcc.gov.sa/arabic/pages/home.aspx) 2. constructionking abdullah city for atomic and renewable energya monthapril 2010, with the aim of building a sustainable future for the kingdom of saudi arabia by including atomic and renewable energy sources within the local energy system., wherethe kingdom has adopted https://www.swcc.gov.sa/arabic/pages/home.aspx american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 79 www.americanjournal.org pressurized light water reactors as an ideal choice for reactors that produce electric power, for several reasons, the most important of which is that they are feasible and effective in producing clean energy and are easy to maintain, which makesexplains building291reactor mthis type has spread around the world so far, in addition to 50 reactors currently under construction, compared to the rest of the reactors, whose combined numbers do not exceed 127 reactors. (king abdullah city for atomic and renewable energy, www.energy.gov.sa). 3. the solar energy project with a capacity of 3.5 megawatts was completed by the german company phoenix in 2012, and it was implemented within the petroleum research and studies center at king abdullah bin abdulaziz university, which is based in riyadh. the project, launched by saudi aramco, consists of 12,684 photovoltaic panels produced by the chinese company suntech, and covers an area of approximately 55,000 square meters, to produce 5,800 mwh annually.(ministry of energy, industry and mineral resourceshttps://www.meim.gov.sa/arabic/pages/default.aspx). 4. the solar towers project at king abdullah university of science and technologythe tower envelope consists of two outer layers of glass curtain walls. this outer layer is completely transparent so that it allows the passage of the largest possible amount of solar energy through it, while the inner layer consists of shaded glass characterized by a high degree of absorption that collects solar energy to increase the volume of hot air inside the tower to the maximum extent, and when the hot air rises out from the top of the tower it dissolves it is replaced by cool air from the patio, andtwo solar power plants occupy the north and south rooftops of the laboratory buildingit is approximately 12,000 square meters, and the maximum productivity of each of them is one megawatt, and it produces up to 3,300 megawatts / hour annually of clean energy, and this production will save about 17,000 tons annually of carbon emissions.(king abdullah university of science and technologyhttps://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency). 5. the adoption of the king abdullah financial district in riyadh in 2012 on solar energy from the german company conergy to secure an essential part of its needs for electrical energy, through the installation of photovoltaic groups on 1300 square meters of the roofs of two of the main buildings of the center, and the solar groups have a capacity of 200 kilowatts, which is equivalent to 330 megawatts / hour per year, which can provide energy for 1500 computers in the center(ministry of energy, industry and mineral resourceshttps://www.meim.gov.sa/arabic/pages/default.aspx). 6. green duba station project bproduction capacity exceeds605 megawatts, of which 50 megawatts are renewable energywhere it cost4.5 billion riyalsand in partnershipbetween the branch of the spanish company "onetech energia sa" and the saudi company for electrical and mechanical works services limited.(king abdullah university of science and technologyhttps://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency). 7. north promise stationto produce1400 megawatts, of which 50 megawatts are from solar energyat a cost exceeded3,750billion riyals, which was implemented in july2018(king abdullah university of science and technologyhttps://www.kaust.edu.sa/ar/about/green-campus/energyefficiency). 8. project sakaka , which station energy umbrella pv working with energy solar with capacity 300mega wat , and granted toacwa power, and it started in november 2018. 9. aabecausea companysn tech power holding company of chinain december2014 completion of the construction work of the largest solar power plant in saudi arabia, and the new solar photovoltaic project capable of generating electricity is owned by3.5 megawatts to saudi http://www.energy.gov.sa/ https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 80 www.americanjournal.org aramco, in addition to the completion of financing arrangements for a project in yanbu industrial city at a cost of $1.1 billion. it aims to produce 10,000 metric tons of high-purity polysilicon and 800 megawatts of solar wafers annually, which will be used to produce solar panels for countries in the middle east and north africa. (sabic saudi arabia,https://www.sabic.com/ar/collaboration/trend/energy-efficiency). 10. solar desalination plant with a production capacity of60 thousand cubic meters of desalinated water per day to feed al-khafji governorateand in january2015agreement signed betweenadvanced water technology company, affiliated to the saudi technical development and investment company (taqnia) with the alliance of the two spanish companies abema and tema, which are affiliated with the spanish company abengoa, a design contractandit consists of several phases. the first phase aims to build a solar-powered brackish water desalination plant in al-khafji governorate60 thousand cubic meters per day, and start building a solar power plant with a capacity of 20 megawatts of electric energy in mid-2015 ad to supply the desalination plant with electricity.where this project was launchedin the first quarter ofgeneral2017 ad.as you planadvanced water technology company to the production of desalinated water for agricultural lands in the event of a decrease in the cost of desalinated water compared to the cost of groundwater extractionaccording to what was announced by the company's president where is thisthe first project in the worldasthat the project cost exceeded133 million dollars (500 million riyals) and its implementation period is 24 months, and work on the project will start fromarich site delivery (saline water conversion corporation,https://www.swcc.gov.sa/arabic/pages/home.aspx) investments in renewable energy projects in the kingdom of saudi arabia table no. (1) project name project type the company implemented generated energy/hour annually project state water desalination solar energy sun tech power chinese 10 megawatts run out solar energy solar energy german phoenix 3.5 megawatts run out campus of king abdullah university solar energy german conergy 3300 megawatts run out king abdullah financial district in riyadh solar energy german conergy 330 megawatts run out duba green solar energy the spanish "onetech energia sa" company, and the saudi electrical and mechanical services company limited. 50 mw underway north promise solar energy 50 mw run out photovoltaic solar energy solar energy sun tech power chinese 3.5 mw run out desalination of brackish water in al-khafji solar energy spanish company abengoa 20 mw run out stationsakaka solar energy aqua power 300 megawatts underway duma dandelion/saudi arabia winds source+total french 400 mw underway king abdullah city for atomic energy nuclear plant russian companies 1000 1600 megawatts underway prepared by the researcher himself https://www.swcc.gov.sa/arabic/pages/home.aspx american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 81 www.americanjournal.org 2renewable energy investments in the united arab emirates the abu dhabi future energy company "masdar", which was established in2006, a leading global company in the fields of renewable energy and sustainable urban development. the cost of the project is estimated at about $22one billiondollars, and it takes nearly eight years to build the city, the first phase finished in a year2009, where construction began in masdar city in 2008 and the first six buildings of the city were completed in october 2010. and due to the impact of the global financial crisis, it affected the first phase of the city, by 1,000,000 square meters (3,900 square miles), to be completed in 2015. the final completion is scheduled for between 2020 and 2025. the company aims to contribute to consolidating the leading role of the state the uae is part of the global energy sector, in addition to supporting the diversification of its economic and energy sources for the benefit of future generationsthis is within the uae economic plan2030.investment amountmasdar is developing commercially viable renewable energy projects in the middle east and north africa region and global marketsin more than25country worth8.5billion dollars, with a total production capacity of projects around the world4gw,she checksnew sources of revenue for the uae in the long term. masdar, wholly owned by mubadala investment company, supports the uae's efforts to build a knowledge economy. over the past decade, the company has contributed to advancing the growth of the renewable energy sector in the arab world, thus consecrating the ability of the business sector to contribute to achieving the goals of the global sustainability agenda., locationmasdar city, uae(https://masdar.ae/ar/about-us/management/about-masdar) 1. crumbledahthe new "permanent" headquarters of the international renewable energy agency (irena) in masdar city, abu dhabiand that in3intend on2015, in a move to diversify the uae economy and spread renewable energy technology projects and solutions and investments in this vital sectorand who is consideredachievementmajor touaethe united arab emirates and the countries of the cooperation councilto host this world organization which started about7 years old.the agency aims toreduce energy consumption by42% compared to international energy efficiency standards, and 64% compared to other typical buildings in abu dhabi, thanks to its design that requires low levels of intervention and smart energy management systems.according to a report issued by "masdar", the complex includes photovoltaic systems on the roofs it occupies an area of 1,000 square meters and generates 305 thousand kilowatt-hours of electricity annually, in addition to solar water heating systems that produce about 27.8 thousand kilowatt-hours. sustainable energy systems will contribute to meeting more than 10% of building energy needs. the building requires less water50% compared to other commercial buildings in abu dhabi. the windows help deflect 90% of direct sunlight, and external awnings have also been installed to enhance take advantage of the light that penetrates the interior while reducing the effect of heat. masdar city website (https://masdar.ae/ar/about-us/management/about-masdar) 2. establishment of the emirates nuclear energy corporation in2009it was awarded by the emirates nuclear energy corporationduring the past five years decades for about1,100 emirati companies to supply a range of services and materials used in the construction processes of nuclear power plants, with a value of aed 9.15 billion.. institution the uae for energy nuclear((https://www.enec.gov.ae/ar/barakah-npp/) 3. barakah nuclear power plant, which includes four stations at a cost20billion dollars, where thepeaceful nuclear programmetoquality, safety and securityandto the speed and efficiency of achievement through achievement13 important objectives of the program at the barakah nuclear american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 82 www.americanjournal.org power plantshe roseinstitutionemirates nuclear energyduring the yearin 2012, the procedures for requesting a license to operate the first and second stations were completed, after the total percentage of project completion exceeded 58%.and that in february2016,wherethe percentage of completion in the first station reached more than84%, while the completion rate for the second station reached about 64%, the third station to about 41%, and the fourth station to about 25%.this station is expected to be operational next year2020after ordering its opening in the year2017according to what was announced by the uae minister of energy due to difficulties in training operating personnel. 4. the waste-to-energy plant in sharjah, where the agreement was signed between masdar and bee’ah in the year2017it aims to addressup to300 thousand tons of solid waste annually instead of putting it in landfills, which supports sharjah’s efforts to reach its goal of eliminating landfills by 2020 and helps treat 75% of solid waste instead of diverting it to landfills,the incineration process converts the waste into heat that is used to drive an electric turbine. the net electrical energy generated is approx27 megawatts, which will be diverted to the main electricity grid in sharjah. (emirates nuclear energy corporationhttps://www.enec.gov.ae/ar/barakah-npp/technology/.). 5. investments worth600one million dollars by masdar company to build a power plant using solar energy by the french companies total and the spanish company abengoa.100megawatts west of abu dhabi2010as the station bears the name (shams 1), it will be the largest in the world and will be eligible to join the carbon credit system. under the united nations clean development mechanism. it owns both total and abnegua20% in the station, while masdar owns60%. location city source emirates((https://masdar.ae/ar/about-us/management/about-masdar) 6. building the highest solar heating system above the surface of the earth in the burj khalifa in dubai to heat the equivalent140one thousand liters of water per day and the equivalent400kilowatt. 7. the yas circuit race car project, the vip suite, which is powered by solar energy and produces290kilowatt. projectsabu dhabi future energy company "masdar".inside the united arab emirates table no. (2) project name energy type the company implemented generated energy/hour annually project state yas circuit umbrella source 290 kilowatts implemented 2012 mohammed bin rashid solar park umbrella diwa + edf + masdar company 800 megawatts underway shams 1 umbrella source + french total + spanish abengoa 100 megawatts underway ghantoot water desalination pilot umbrella source production of desalinated water from 1500 to 2500 cubic meters per day underway turning waste into energy umbrella masdar + environment company treating 300,000 tons of solid waste annually (27 megawatts) underway sea palace umbrella source 200 kw underway photovoltaic solar energy umbrella source 1750 kw underway imran hospital umbrella source 450 kw underway barakah station nuclear korea electric power company (kepco) 1400 megawatts. executed prepared by the researcher himself https://www.enec.gov.ae/ar/barakah-npp/technology/ american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 83 www.americanjournal.org renewable energy investments in the kingdom of bahrain 1tower building center the two seas commercial world in 2008 first building commercial complete installation turbines wind power generation in its design, in which harnesses appearance the two towers air that passes between them and converts it to energy electric renewable energy needed by the center to eliminate about 55 cubic kilograms of harmful carbon emissions that are spent in the environment every year, and by using wind turbines as an alternative source of energy, the turbines will generate between 1100 and 1300 megawatt hours per year, which is equivalent to lighting 300 homes for more than a year.which is expected to provide between 11-15% of the electrical energy needed to operate the offices of the two towers of the bahrain world trade center, which consist of 50 floors. 2janabiya park project, namelythe first eco-park of its kind powered by 100% renewable energy% in winter and 80% in summer at the level of the arabian gulf regionwhere the park opened on february 27 of the year 2016,it also worksgarden (janabiya) with solar and wind energy at the same timea, wherethe janabiya park development project is about "using solar panels and fans to generate energy from the wind to operate the park so as to achieve the generated energy and reducefrompressure on the government networkalso checkself-sufficiencywhatsupport the government electricity networkwhere aelectricity output 5900 watts, charges 16 rechargeable batteries".;the park is made from23 plankstogenerationtheenergytheumbrellaproduction size250 watt powerper plankit also contains two helicopters to generate electricity from the wind, the output power of each fan is 150watt, asthe traditional high-energy-consuming lighting has been replaced by lowconsumption lamps, achieving significant savings in electricity consumption by 64%. 3the bahrain petroleum company (bapco) inaugurated the bahrain solar energy project, which began in november 2012 and is being implemented by the us company, petrosolar, at a cost of $27 million with the us company, petrosolar. the project capacity is equivalent to 5 megawatts distributed in 3 regions in the kingdom, the first in the refinery with a capacity of 3 megawatts, the awali region with a capacity of 1.5 megawatts, and the university of bahrain with half a megawatt.(abdul wahab, 2012). 4installing solar energy systems in the avenues mall, where 880 solar panels are installed on the car parks. 5public transport bus stops project. on september 21, 2019, the assistant undersecretary for transport at the ministry of transportation and communications announced the completion of the installation of solar panels at 32 public bus stops powered by solar energy, with the aim ofreducing the cost of lighting stationsand for lighting the stations and displaying advertisement boards in them, as four stations were occupied, and a site for public transport in 2016 to operate only four stations, as the implementation of the project has now been completed. 6the inauguration of the first government building powered by solar energy, which is the jaafari endowment administration, by solar 1 in november 2018. 7al-dur station, which is a project of the electricity and water authority, which aims to produce approximately 3 megawatts of solar energy and 2 megawatts of wind energy. it is under implementation and is located in southern bahrain. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 84 www.americanjournal.org 3renewable energy investments in the state of qatar 1. qatar solar energy facilitywhich opened in the previous year 2018with a production capacity of 300 megawatts,,it meets the needs of 66,000 homes in the first phase until 2020. 2. siraj energy project, where it aimsto produce from 500 to 1,000 megawatts of electrical energy through solar photovoltaic technology.andthe cost of the first phase is estimated at about 500 to 600 million us dollars to produce 500 megawatts of electricity. the first phase includes, until 2020,nothe production of 350 megawatts of electricityand work on the second phase ends in 2021qatar electricity and water companyhttps://www.qewc.com/qewc/ar/subsidiaries/siraj-energy/). 3. the launch of qatar technologies middle east in 2010, a joint venture between qatar foundation (70%), solar world (29%) and qatar development bank (1%), which aims to produce 3,600 tons of polycrystalline silicon per year, for export to international markets. high solar energy, as published by the middle east economic digest, quoting the director of business development planning at the qatar general electricity and water corporation, said that qatar expects to add 16,260 megawatts of energy to its local grid from 2011 to 2036, which is about four times the current capacity. 4. establishing the first football stadiums cooled by solar energy and clean energy, so that the temperature of its stadiums does not exceed 27 degrees celsius, when it hosts the world cup in 2022. 4renewable energy investments in the state of kuwait 1al-shagaya renewable energy stationit opened in february of this year 2019with an operational capacity of 70 megawatts, asit has been linked with the national electricity grid, and is produced through 3 stations in the complex, which are the solar thermal power station, the wind power station, and the photovoltaic station.. this complex can supply approximately 1,000 residential units with average consumption of electricity throughout the year, and achieves great economic returns as a result of saving consumption of more than 285 thousand barrels of oil equivalent annually. 2stationsolar bearswhich is intended to produce1500 megawatts, and this project will secure 15 percent of the oil sectorntotal energy in the year 2030it is expected to be operational in the last quarter of 2021. 3the abdali project, which is a joint project between the public and private sectors, produces (280) megawatts, of which (60) megawatts is solar energy, and it is a joint project (solar energy with the double cycle of gas turbines). 4the photovoltaic panels project on the building of the ministries of electricity, water and public works, with a production capacity of (1) mwh, and an annual capacity of (1810) mwh. 5photovoltaic panels project on the canopies of the kuwait towers facility, with a production capacity of (117) kilowatt-hours, and an annual capacity of (211,770) kilowatt-hours.(kuwaiti economist, 2019) 6renewable energy investments in oman 1. dhofar wind power plant,located in the dhofar governorate of the sultanate of oman, the dhofar wind power plant represents masdar's first investment in the omani renewable energy sector. when completed, the 50-megawatt dhofar wind power plant will be the first large-scale wind project in the persian gulf region.,construction work started in the first quarter of 2018.whereit will be commercially operated in early 2021. the cost of the project, which will be fully implemented by the private sector, is estimated at about ro 155 million. the oman electricity transmission company https://www.qewc.com/qewc/ar/subsidiaries/siraj-energy/ american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 85 www.americanjournal.org will transfer the electrical energy produced from the station through the main electricity network.andthe 50 mw plant will contribute to meeting the growing energy needs of oman, and will contribute to supplyingover 16thousands of homes with electricity and reduce carbon dioxide emissions by approx180 thousand tons annually reducing dependence on fuel for electricity generation, allowing it to be used in industrial activities of higher value and preserving natural fuel sources, andthe plant is being constructed in the thumrait region, which is characterized by a high average wind speed of 8 meters per second.andthe plant will consist of 13 wind turbines produced by general electric, which will increase both the production capacity of energy annually and flexibility in employment,where this station achieves multiple benefits, the most prominent of which are: 1it reduces the emission of 180,000 tons of carbon dioxide emissions. 2it provides electric power to more than 16,000 homes. 3the station's capacity is to generate 50 megawatts of electric power. the station provides 7% of the energy of the dhofar governorate. (masdar city, uae) (https://masdar.ae/ar/masdar-clean-energy/projects/dhofar-wind-project investments in renewable energy projects in the countries of the cooperation council for the arab states of the gulf table no. (3) the numb er project name project type project state generated energy/hour annually project state 1 yas circuit solar energy emirati 290kilowatts run out 2 mohammed bin rashid solar park solar energy emirati 800megawatts underway 3 shams 1 solar energy emirati 100megawatts underway 4 ghantoot water desalination pilot solar energy emirati production of desalinated water from 1500 to 2500 cubic meters per day underway 5 turning waste into energy solar energy emirati treating 300,000 tons of solid waste annually (27 megawatts) underway 6 sea palace solar energy emirati 200kilowatt underway 7 photovoltaic solar energy solar energy emirati 1750kilowatt underway 8 imran hospital solar energy emirati 450kilowatt underway 9 water desalination solar energy saudi 10megawatts run out 10 solar energy solar energy saudi 3.5mw run out 11 campus of king abdullah university solar energy saudi 3300mw run out 12 king abdullah financial district in riyadh solar energy saudi 330mw run out 13 duba green solar energy saudi 50mw underway 14 sakaka solar energy saudi 300 megawatts underway 15 north promise solar energy saudi 50mw run out 16 photovoltaic solar energy solar energy saudi 3.5mw run out 17 desalination of brackish water in al-khafji solar energy saudi 20mw run out 18 dumat al-jandal/ saudi arabia winds saudi 400mw underway https://masdar.ae/ar/masdar-clean-energy/projects/dhofar-wind-project american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 86 www.americanjournal.org 19 janabiya park solar and wind energy bahrai ni 5900 watts run out 20 awali station solar energy bahrai ni 5 megawatts run out 21 my horoscope center the two seas commercial global wind energy bahrai ni 1100 and 1300 megawatts run out 22 avenues mall parking solar energy bahrai ni run out 23 public transport stations (4) solar energy bahrai ni run out 24 jafaria endowment administration building solar energy bahrai ni run out 25 role station solar energy and wind energy bahrai ni 3 megawatt solar and 2 megawatt wind underway 26 dhofar wind power plant wind energy omani 50 mw underway 27 al-shagaya renewable energy station solar, wind and photovoltaic kuwait i 70 mw underway 28 stationsolar bears solar energy kuwait i 1500 megawatts underway 29 abdali station solar and gas turbines kuwait i 280 mw underway 30 ministries of electricity, water and works umbrella kuwait i 1 mw underway 31 umbrellas of the kuwait towers facility umbrella kuwait i (117) kwh underway 32 qatar solar energy facility solar energy qatari 300 mw underway 33 siraj energy project solar energy qatari 500 mw underway 34 qatar technologies middle east company solar energy qatari 16,260 megawatts run out 35 cooling football fields solar energy qatari underway 36 station blessing nuclear emirati 1400 mw. underway 37 king abdullah city for atomic energy nuclear plant saudi 1000-1600 megawatts underway preparation of the researcher himself percentage of gcc investments in renewable energy projects table no. (4) country number of projects investment percentage of the total projects energy used kingdom of saudi arabia (11) 9 solar, 1 wind, 1 nuclear 30% 82% solar, 9% wind, 9% nuclear united arab emirates (9) 8 solar, 1 nuclear 24% 89% solar, 11% nuclear bahrain (7) 4 umbrellas, 2 multiples, 1 winds 19% 50% solar, 33% multi, 17% wind kuwait (5), 3 multiple, 2 solar 13.5% 60% versatile, 40% solar the state of qatar (4) solar 11% 100% solar sultanate of oman (1) winds 2.5% 100% wind total (37) 27 solar, 5 multiple, 3 winds, 2 nuclear 100% american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 87 www.americanjournal.org percentage of renewable energy generation out of the total investment projects in the countries of the cooperation council for the arab states of the gulf, table no. (5) energy type the ratio umbrella 73% multiple 13.5% winds 8% nuclear 5.5% findings and recommendations this study found that the diversity of renewable energy projects for the countries of the cooperation council for the arab states of the gulf is one of the most important indicators of the success of the country's economic development plans 2030, especially in enhancing sources of income through nonoil sectors. this study also noted that the countries of the cooperation council for the arab states of the gulf have continuous growth and expansion it is distinguished in the quality of investment projects to generate renewable energy, which began to be realized since the beginning of the third millennium, regardless of the size of these projects. this study also found the presence of four distinct projects in the countries of the cooperation council for the arab gulf states and at the level of the middle east and north africa, namely: 1establishing the first football stadiums cooled by solar energy and clean energy, so that the temperature of its stadiums does not exceed 27 degrees celsius, when it hosts the world cup in 2022. 2sharjah station for converting solid waste into energy, which aims to treat up to 300,000 tons annually of solid waste instead of putting it in landfills. 3the project to generate electricity from wind turbines installed in the two towers of the bahrain trade center, which is the first commercial building in the world to contain such turbines. 4stationkhafji tosolar desalination with a production capacity of 60,000 cubic meters of desalinated water per day to feed al-khafji governorate. 5projectcreation of the first eco-park of its kind powered by 100% renewable energy% in winter and 80% in summer at the level of the arabian gulf regionwhich operates with two types of energy,solar and wind energy togethera. looking at the percentage of gcc investments in renewable energy projects, this study found that saudi arabia ranked first with 30%, while the united arab emirates ranked second with 24%, while bahrain ranked third with 19%. then kuwait ranked fourth with 13.5%, qatar ranked fifth with 11%, and the sultanate of oman came in last with 2.5%. this study also noted the percentage of renewable energy generation out of the total investment projects in the gcc countries of the following four types : (solar energy by 73%), (multiple energy by 13.5%), (wind energy by 8%), (nuclear energy by 5.5%), and the researcher attributes the reason for the concentration of most renewable energy projects from solar energy because of the advantages achieved by this technology, especially the flexibility of its cost compared to other sources of energy generation from renewable energy, in addition to nature the climatic conditions of the gulf cooperation council countries are characterized by a long, hot, sunny summer season. this study also found a limited american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 88 www.americanjournal.org concentration of investments in renewable energy projects in the field of wind energy by 8%.wind turbine technology in the seas a lot during the last periodin the major industrial countriesso that it has become a major contributor to securing needshaof energyhowever, it was not observed that there is any project to generate energy from hydropower, especially tidal energy, in the gcc countries. despite the success of the countries of the cooperation council for the arab states of the gulf by not relying on traditional sources of energy generation from oil and gas only and the tendency to invest in renewable energy projects, they still lack the presence of international training centers specialized in training their citizens in the field of renewable energy, which is the reason that delayed the opening and operation of al-barakah nuclear power plant from 2017 to 2020, when it sent its employees abroad for operation training, so the researcher proposes introducing the renewable energy engineering major as a scientific path independent from the rest of the engineering disciplines in universities and educational colleges in the countries of the cooperation council for the arab gulf states, as this study recommends in the establishment of a special body concerned with the security of renewable energy affiliated to the general secretariat of the cooperation council for the arab states of the gulf, which includes a group of gulf scientific competencies specialized in (renewable energy engineering). the researcher also recommends the establishment of a free market specialized in renewable energy. in the gulf free markets, so that this market includes companies and stores that provide all the needs of renewable energy generation projects (equipment, devices, generators and batteries) for all the operation and construction of stations, wheremost foreign investors invest in free zones.this study also shows a wonderful model that is proposed to be used for the rest of the cooperation council countries, in the establishment ofthe first football stadiums cooled by solar energy and clean energyin the state of qatarso that the temperature of its stadiums does not exceed 27 degrees celsius, when it hosts the world cup in 2022.as for the kingdom of bahrain, it hasministry of municipalities and agriculture affairsrepresented in the gardens and parks sector by providing a wonderful model to be followed by the rest of the countries of the cooperation council for the arab states of the gulfcreation of the first ecological parkin the areafavoriteworkingsolar and wind energy combineda . references books (arabic) 1. al-hafeet, imad muhammad (2019) nuclear energy, its risks and benefits, first edition, alradwan for publication and distribution, amman, jordan. 2. technology and the future of energy (2013), emirates center for strategic studies and research, first edition. 3. al-dweikat, ali ahmed (2013) renewable energy prospects and challenges, report of al-israa university journal, amman, jordan. 4. abdel-aty, amr (2014) energy security in american foreign policy, arab center for research and policy studies. 5. abdel wahhab, lahab, (2012) security of supplies and geopolitical risks, bahrain center for strategic, international and energy studies. 6. al-omar, ibrahim saleh (2012). the effect of price restriction of economic commodities on consumer surplus: a theoretical study. journal of administrative and economic sciences, qassim university.(foreign). american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 89 www.americanjournal.org 7. nuclear energy in the gulf, (2009), emirates center for strategic studies and research, first edition. 8. mr. on slave softener , to open god saad , investment the alien in jordan:its size and its structure and its directions and its effects developmental, conference scientific the second around importance investments external in development on economy jordanian, university irbid2001. english books and periodicals 1. cust, james & neuhoff, karsten, (2010) the economics, politics & future of energy subsidies, report from green. 2. frondel, m, kambeck, r, schmidt, cm (2007) hard coal subsidies, a never ending story? . 3. iea, (2013). statistics & balances. 4. kosmo, mark nicholas, (2012) money to burn: the high costs of energy subsidies, world resources institute, washington, usa 5. lin, bq, jiang, zj (2011). estimates of energy subsidies in china & impact of energy subsidy reform, energy economics (2011). 6. munasinghe, mohan, & warford jeremy (2009) electricity pricing: theory & case studies, published for the world bank by johns hopkins university press, new york. 7. shah, a, larsen, b, (2008) world development repot: carbon taxes, the greenhouse effect & developing countries, policy research, working papers. 8. unep, (2004). reforming energy subsidies: opportunities to contribute to the climate change agenda 9. . makola, unctad. (2003), "the attraction of the foreign direct investment (fdi) by the african countries," biennnial essa conference, summerset west: captown 10. unctad (2011), united nations conference on trade and development. new york and geneva. united nations. arabic magazines and reports 1. al-abbasi abdullah, al-dosari abdulaziz, (2019) report on the adoption of nuclear energy projects in the arab gulf states, bahrain center for strategic, international and energy studies. 2. magazine body connectivity electrophoresis for countries council cooperation for countries gulf arabic,(2018), the number the second. 3. shihab el-din, adnan, (2011), a report on nuclear energy and the prospects for its peaceful uses in the gcc countries, taawon magazine, issue 73. 4. kuwaiti economics journal, (april, 2019), issue 563, a monthly magazine issued by the kuwait chamber of commerce and industry. websites 1. organized gulf consulting industrial(goic https://knowledge.goic.org.qa/study_details.aspx?id=1596&title=gulf-statistical-profile-2016). 2. (center diplomat for studies the strategy 3. ,https://dcss-center.org/business_economy_report/energy_report.php) https://knowledge.goic.org.qa/study_details.aspx?id=1596&title=gulf-statistical-profile-2016 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 90 www.americanjournal.org 4. (location a company qatar for petroleumhttps://qp.com.qa/en/pages/home.aspx). 5. (center diplomat for studies the strategy,https://dcsscenter.org/business_economy_report/energy_report.php). 6. (city source emirates) (https://masdar.ae/ar/about-us/management/about-masdar). 7. (emirates nuclear energy corporation)https://www.enec.gov.ae/ar/barakah-npp/). 8. (international atomic energy agencyhttps://www.iaea.org/ar). 9. (location knowledge scientific https://www.marefa.org/%d8%b7%d8%a7%d9%82%d8%a9_%d8%a7%d9%84%d8%b1 %d9%8a%d8%a7%d8%ad). 10. http://offshorewind.net/other_pages/questions.html. 11. institution the uae for energy nuclear(https://www.enec.gov.ae/ar/barakah-npp/). 12. city the king abdullah for energy atomic and renewable(https://www.energy.gov.sa/ar/projects/pages/atomic.aspx). 13. (enterprise the public to sweeten water salty, https://www.swcc.gov.sa/arabic/pages/home.aspx). 14. (university the king abdullah for science and technical https://www.kaust.edu.sa/ar/about/greencampus/energy-efficiency). 15. (sabek saudi arabia,https://www.sabic.com/ar/collaboration/trend/energy-efficiency). 16. saudi ministry of energy, industry and mineral resourceshttps://www.meim.gov.sa/arabic/pages/default.aspx 17. aramco saudi arabiahttps://www.saudiaramco.com/ar/investors/investors/reports-andpresentations 18. qatar electricity and water companyhttps://www.qewc.com/qewc/ar/subsidiaries/siraj-energy/ https://masdar.ae/ar/about-us/management/about-masdar https://www.enec.gov.ae/ar/barakah-npp/ https://www.iaea.org/ar https://www.marefa.org/%d8%b7%d8%a7%d9%82%d8%a9_%d8%a7%d9%84%d8%b1%d9%8a%d8%a7%d8%ad https://www.marefa.org/%d8%b7%d8%a7%d9%82%d8%a9_%d8%a7%d9%84%d8%b1%d9%8a%d8%a7%d8%ad http://offshorewind.net/other_pages/questions.html https://www.enec.gov.ae/ar/barakah-npp/ https://www.energy.gov.sa/ar/projects/pages/atomic.aspx https://www.swcc.gov.sa/arabic/pages/home.aspx https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency https://www.kaust.edu.sa/ar/about/green-campus/energy-efficiency https://www.meim.gov.sa/arabic/pages/default.aspx https://www.saudiaramco.com/ar/investors/investors/reports-and-presentations https://www.saudiaramco.com/ar/investors/investors/reports-and-presentations https://www.qewc.com/qewc/ar/subsidiaries/siraj-energy/ american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 27 www.americanjournal.org methods of development of operations of commercial banks in the fund market mardonov shaxriyor xolmirzo o‘g‘li teacher, department of “corporate finance and securities” tashkent institute of finance. uzbekistan, tashkent city. e-mail: shaxriyor_x_mardonov@mail.ru a b s t r a c t k e y w o r d s in this article, the set of economic relations related to the organization of operational activities of banks in the stock market was chosen as the subject of research. the object of research is to calculate the sum of mechanisms for organizing the operational activity of banks as an issuer, investor or investment institution in the stock market, and the object of research taken as commercial banks. also, in the article, the opinions of foreign and local scientists on this topic are highlighted and suggestions are made. bank, stock market, capital market, investor, capitalization, depositor, issuer, share, bond, joint stock company. introduction: today, the main problem in the banking system is that 86% of the banks’ capital belongs to the state. this hinders healthy competition in the banking system and negatively affects the quality of services provided. the development of financial markets, including the stock market, should become one of the main goals in the new economic environment. realization of these important tasks in practice requires activation of emission, investment and mediation activities of uzbek banks in the developing stock market. in this regard, it is of particular importance to apply qualitatively new approaches to the organization of operational activities of banks with securities. world practice confirms that the scope of financial support for the modernization of enterprises in the real sector of the economy of uzbekistan can be significantly expanded by activating emission, investment and intermediary operations [1]. with the help of the stock market, both the state and enterprises attract the necessary funds for the implementation of development and socially important programs. also, stock exchanges operate in the market economy of many of the most modern countries of the world. at the same time, stock exchanges are considered as the most important institution of the market economy, and the activities of the respective financial institutions include many important tasks based on the national economy. a stock market is a set of mechanisms that allow transactions with physical or securities. a stock exchange is an organized market for the trading of securities. it is a place where buyers and sellers of meet [2]. the officials were briefed on the issues discussed at the meeting and priorities were identified. therefore, it is planned to develop a strategy for the development of the stock market in 2020-2025. it american journal of business management, economics and banking volume 13 june, 2023 p a g e | 28 www.americanjournal.org is planned to increase the ratio of free-floating securities to gdp by at least 10-15% by the end of 2025 [3]. 2. literature review the growing importance of securities to strengthen the resource base of commercial banks is due to the huge socio-economic potential they have. famous russian scientist m.yu. according to alekseev, “a security is a monetary document that confirms certain property rights of the investor in relation to the issuer of this security and usually provides for the payment of income in the form of dividends or information and other rights arising from these documents” [4]. in particular, gregory menkyu, one of the most modern and well-known foreign economists, describes the stock market in this way. “in many cases, such a definition of the stock market is common, that is, it is a set of financial institutions that allow those who wish to save, and in the stock and bond markets to lend their funds to borrowers” [5]. y. m. mirkin believes that securities are fake capital a manifestation of real capital on paper. according to him, “fake capital is capital presented in securities (shares, bonds, securities), which constantly performs an independent action on the stock market, differs from real capital, and brings income in the form of dividends or interest to its owners. without directly performing any functions in the process of movement of industrial capital, and, as a result, without participating in the process of creating value and surplus value, it gives its owner the right to appropriate a part of the latter” [6]. the concepts of stock market and stock market are common in economic literature and vocabulary. in particular, e.f.zhukov writes: “currently, there are three markets for securities involved in financing the economy: over-the-counter, stock (exchange) and street” [7]. according to famous russian scientists v.a.galanov, a.i.basov, "from an economic point of view, a security is a commodity that can be replaced, that can be traded in the market independently like a commodity and that generates income, unlike capital in the form of productivity and money. shows a special form of existence. this unusual form of capital consists in the fact that its owner does not have the capital itself to it recorded in the form of a security [8]. according to f.t. muxamedov, one of the leading scientists in the country, the securities market trading systems are the conclusion of a contract, verification of the parameters of the contract, clearing (settlement), fulfillment of the terms of the transaction (payment) and a market mechanism organized as a complex trading industry consisting of a set of economic, technical, technological and organizational tools that enable the transfer of securities to a new owner) [9]. the issuance of securities allows enterprises to implement large financial investment projects. for this reason, it is advisable to increase the number of joint stock companies in the regions of the country. an increase in the number of joint-stock companies will allow modernizing the production or service process [10]. 3. research methodology in this article, the participation of commercial banks in the stock market is analyzed, and in this article, scientific works and articles dedicated to the analysis of sources representing the role and importance of banks in the stock market are studied. economic research methods such as graphical grouping, economic-statistical analysis and synthesis, logical reasoning were widely used as a research methodology. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 29 www.americanjournal.org 4. analysis and discussion of results. a qualitatively new stage of deepening of economic and social reforms in our country, as well as an increase in the demands of the subjects of the economy of uzbekistan for investment resources in the needs of innovative development, require the activation of the activities of commercial banks in the developing securities market. the president of the republic of uzbekistan sh.mirziyoev pointed out the need to solve a number of priority tasks in his address on the most important, priority development tasks of the country in 2019 in order to bring economic reforms to a new, higher level. one of them is the urgent continuation of reforms in the banking and financial sector, the widespread introduction of modern market mechanisms into the sector [11]. the appearance of securities is related to the development of commodity-money relations in human society, because the model forms of securities appeared in the ancient world. the stock market, which was created during the development of trading capital, has been one of the most stable parts of the economic mechanism in many developed countries of the world for a long time. until the mid-1960s, commercial banks treated almost all types of securities with extreme caution, as they were considered one of their high-risk instruments. however, by the beginning of the 20th century, the attitude toward them changed, as the rapid growth of joint-stock enterprises helped to significantly expand the scale of issuance of stocks and bonds, as well as to turn stock exchanges into efficient mechanisms for the allocation and redistribution of capital among various sectors of the economy. securities include stocks, corporate bonds, government bonds, promissory notes, checks, certificates of deposit and savings, bank passbooks, bills of lading, and other legal securities. from a practical point of view, commercial banks are interested in the classification of securities, which consists in dividing them into types according to certain characteristics that apply to securities [12]. we can see in the figure below that the main value of any security for commercial banks consists of the rights it has for the issuer and the owner (fig. 1). figure 1. classification of securities in the modern market economy [13] government securities are usually bonds of various types. non-state securities are securities issued by corporations (companies, banks, organizations) and private individuals. usually, the government issues american journal of business management, economics and banking volume 13 june, 2023 p a g e | 30 www.americanjournal.org short-term securities. government short-term securities are issued mainly to cover public debt. that is, the state issues securities that represent a short-term debt obligation until the funds coming to the budget through taxes arrive. in some countries, this security is issued by the ministry of finance, while in others it is issued by the treasury. if we look at the example of the usa, this security is issued by the treasury department and is called t-bills. their duration is mainly 28, 91 and 182 days [14]. emission corporate securities (shares and bonds) are issued in large series, in large quantities, all securities within each series have the same terms. according to the law of the republic of uzbekistan on “stock market”, a share is a confirmation of the right of its owner to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to part of the property remaining after its liquidation, the validity period is not specified, the name of the owner is a written emission security. shares can be issued both in documentary form (paper, material) and in non-documentary form in the form of relevant entries in accounts. when shares are issued in documentary form, the share can be replaced by a certificate of ownership of a specified number of shares by the person named in it. figure 2. classification of different types of shares issued by commercial banks [15] figure 2. shows the types of shares issued by banks to finance their own development needs. shares are widely used not only when joint-stock banks are established, but also when they are reorganized, merged (merger) and combined (take over). as a result of issuing shares, the authorized capital of jointstock commercial banks is formed, which ensures their competitiveness in the market of goods and services. various types and forms of shares can be issued in a joint-stock commercial bank: simple (common, ordinary stocks according to the term adopted in the usa, ordinary shares according to the term adopted in great britain); preferential (preference stocks – ssha, preference shares – great britain). a common stock is a security that gives its owner the right to participate in general meetings of shareholders with his vote, to receive dividends and to have a part of the property in the event of american journal of business management, economics and banking volume 13 june, 2023 p a g e | 31 www.americanjournal.org liquidation of the joint-stock company. a shareholder or his representative may participate in the general meeting of shareholders. owners of ordinary shares have the following rights: voting rights or participation in the management of the corporate structure. annual total of shareholders to holders of ordinary shares; gives the right to participate in its meetings and in making important decisions regarding the activities of the corporate structure; the right to participate in commercial bank profits or receive dividends. dividend is a part of the income of a commercial bank, which is distributed to shareholders based on the number of shares. dividends on common stock are paid after all taxes, payables, bond interest and dividends on preferred stock are paid; benefits of the right to purchase newly issued shares before they are offered to other persons. the advantage of this right is to protect their share in front of new shareholders who buy newly issued shares. this right is especially important for owners of controlling and large block shares. using this right, shareholders can buy shares in the amount of their share in the company. one of the main conditions for accelerating the issuing activity of banks in uzbekistan was the increase in the scope of their issuing activity, which was based on the policy of the central bank of the republic of uzbekistan aimed at increasing the level of capitalization of commercial banks (table 1). table 1 amount of funds directed to increase the authorized capital of commercial banks as of 01.10.2022 (billion soums) [16] № name of the bank declared authorized capital, billion soums additional issue of shares total including 2018 2019 2020 2021 2012 1. asakabank 5 683,0 4 972,9 1 582,8 3 390,1 2. khalk’s bank 2 039,1 1 691,8 54,0 62,0 744,7 436,1 395,0 3. industrial construction bank 2 169,2 2 160,9 697,9 697,9 943,3 299,9 4. microcredit bank 794,0 706,0 50,0 355,0 201,0 100,0 5. agrobank 2 162,9 1 899,4 54,1 50,0 967,9 827,4 total 12 848,2 11 431,0 856,0 331,8 4593,7 1764,4 3 885,1 in table 1 above, during the years 2018 2022 atb increased by 3.5 times and “agrobank” atb increased by 6 times. in recent years, the authorized capital of most banks has been implemented by closed subscription by placing securities among a limited number of investors, known in advance, without public announcement and advertising company, based on government decisions. it should be noted that such an increase in the authorized capital of banks led to an increase in the state's share, which in turn is the main factor that stops the development of the secondary stock market atb increased by 3.5 times and “agrobank” atb increased by 6 times. in recent years, the authorized capital of most banks has been implemented by closed subscription by placing securities among a limited number of american journal of business management, economics and banking volume 13 june, 2023 p a g e | 32 www.americanjournal.org investors, known in advance, without public announcement and advertising company, based on government decisions. it should be noted that such an increase in the authorized capital of banks led to an increase in the state's share, which in turn is the main factor that stops the development of the secondary stock market [17]. 5. conclusions and suggestions the following conclusions can be made after studying the conditions of commercial banks in the stock market: 1) the growing importance of equity and debt securities for strengthening the resource and customer base of commercial banks depends on the huge socio-economic potential they have. 2) expanding the volume of issuance of equity and debt securities is becoming a necessary condition for improving the quality of financing of all aspects of banking activities and a guarantee of successful ownership of shares in the banking sector. 3) effective use of stock potential significantly helps to improve the bank's capital structure, expand the resource and customer base of commercial banks. 4) in order to implement a promising direction of financial management, commercial banks of uzbekistan should learn to conduct effective activities in the securities market and gain the necessary level of trust of the participants of this market as reliable issuers, large investors and experienced investment institutions. 5) noting the importance of using the potential of shares to strengthen the resource base of foreign banks and obtain additional income, it should not be forgotten that it is a complex process that requires serious training and professionalism from bank specialists to carry out emission and investment activities in the securities market. 6. literatura/reference: 1. chinkulov k. r., ochilov b. b. formation of investment environment: scientific and methodological directions of territorial assessment //international journal of multicultural and multireligious understanding. – 2022. – т. 9. – №. 3. – с. 408-415. 2. s.a. obidov. development of the stock market is the most important factor of the national economy – “science and education” scientific journal, january 2021/volume 2 issue 1. page 207. 3. on october 7, 2019, president of the republic of uzbekistan shavkat mirziyoyev held a meeting on the development of the stock market. 4. alekseev m.yu. stocks and bods market – m.: finance.2010. 86-pages. 5. barr r. political economy. t.-m. international relations, 1995, p.319. 6. mirkin ya.m. securities and the stock market. -m.: economics, 1995, 66-69 pages. 7. m. gregory. principles of economics. spb.: peter kem., 1999, p.538. 8. under the editorship of v.a.galanov, a.i.basov securities market -f: 2010, 9-10 pages. 9. muxamedov f.t. directions for the development of securities trading systems in uzbekistan. 08.00.07 – author’s abstract of the dissertation of the doctor of economic sciences (dsc) on a specialty “finance, money circulation and credit”. tfi, tashkent-2019. 10. inatilloevich j. b. the role and analysis of the stock market in attracting investments //conferencea. – 2023. – с. 1-4. 11. address of the president of the republic of uzbekistan sh. mirziyoyev to the oliy majlis. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 33 www.americanjournal.org december 28, 2018. 12. butaev j., ochilov b. the role of the investment environment in attracting foreign investment //asian journal of multidimensional research. – 2021. – т. 10. – №. 5. – с. 687697. 13. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. 14. s. elmirzaev, n. tursunova, n. sherko'zieva, d. abdikarimova, i. jumaniyozov, m. zokirjonov, sh. elmurodov, n. shavkatov. financial market. textbook. t.: “economy-finance” 2019, p. 21. 15. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. 16. prepared by the author based on information from the official website of the central bank of the republic of uzbekistan – www.cbu.uz 17. butaev j., radjabov u. conceptual foundations of improving the tax system problems and solutions //trans asian journal of marketing & management research. – 2021. – т. 10. – №. 4. – с. 91-98. http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 132 www.americanjournal.org the role of strategic leadership practices in building independent organizations: an exploratory study of the opinions of a sample of workers in iraqi private banks 1-adnan rashed awad university of tikrit/ college of petroleum processes engineering/ control of oil systems/ iraq/ adnan.r.awad@tu.edu.iq 2-hashm rashad ahrash university of tikrit/faculty of political science / iraq/ hashim.rash17@gmail.com 3abd alfatah hasan soltan university of tikrit/ college of petroleum processes engineering/ control of oil systems/ iraq/ asewdwh@gmail.com a b s t r a c t k e y w o r d s the study aimed to study the role of strategic leadership practices in building independent organizations: an exploratory study of the opinions of a sample of workers in iraqi private banks. to achieve the objectives of this study, the researcher prepared a questionnaire to measure the study variables on some of them. the questionnaire tool was distributed to the study sample, where the final number that was analyzed reached (98) questionnaires. the study reached several results, the most important of which was: (there is a statistical effect of the level of ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks. there is a statistical impact on the level of ability to deal with strategic decisions from the point of view of workers in iraqi private banks, and there is a statistical effect of the level of possibility of expanding relations with influencers from the point of view of workers in iraqi private banks. the study concluded with a set of recommendations, the most important of which was the necessity of strategic leadership studies related to the role of practices building organizations, and building strategic leadership practices based on the analysis of the internal and external environments to identify opportunities in the external environment strategic leadership practices, building independent organizations, iraqi private banks. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 133 www.americanjournal.org introduction societies and organizations of all kinds are subject to one form of leadership, which aims to achieve the interests of individuals in the community and push back injustice and harm from them. on the other hand, if effective and qualified leadership is absent, the quality of performance and production will decrease, and the organization will fail to achieve its goals and objectives. accordingly, the success and efficiency of the organization can be measured through the success of its leadership(filion, 2018). since ancient times, leadership in all its forms has received the attention of researchers and academics from various social, economic, political, cultural, educational, health and many other fields and its methods(al sheikh & aziz, 2008) . where leadership is the main factor in the success or failure of any organization, because the leader has a decisive role in influencing the behavior of workers, and in creating a pioneering scientific atmosphere that represents an effective investment in the efforts of workers, and to the extent that the leader is able to carry out his tasks and responsibilities, he is able to achieve desired corporate goals(hafez et al, 2016). there were many different efforts and foreign and arab studies that dealt with the topic of leadership, which emphasized the effectiveness and importance of leadership practice in the development of different organizations. the results of the al-sheikh study (2008) indicated the weak effectiveness of adopting old leadership topics. he also recommended the necessity of switching to modern leadership practices in line with the requirements of the times.” while khan (2016) believes that “it is time to put an end to the traditional leadership practice from top to bottom, and to shift to different forms of leadership to meet the requirements of the current era ”. the leadership approach also contributes to reaching a state of sustainable leadership that provides future directions for the organization, places it in the circle of local and global competition, and increases the degree of its adaptation to rapid and successive changes that include all areas of life, which made leadership thought an important requirement for organizations looking for excellence and advancement. and obtaining the competitive advantage, as the pursuit of entrepreneurship is one of the most important and modern topics in the field of management, and the standards of leadership and creativity have become at the forefront of the goals that organizations seek to achieve to support more excellence and uniqueness in their performance, which requires administrative leaders to make efforts to achieve success and progress relying on speed, flexibility and innovation (al-aidi, 2009). the researchers defined leadership practices as all the positive and effective activities that leaders and administrators practice in organizations and organizations towards their employees and workers, in order to achieve a specific purpose by using one of the methods of influence and persuasion or by using official authority when necessary and needed (haniyeh, 2016). hariri (2012) defined it as an interactive process between the leader or the boss and a group of subordinates or subordinates, based on which plans and desired goals are drawn up and then effective measures are taken to achieve those goals, and the essence of the leadership process is the leader’s ability to influence others and achieve the best results through them. . mohi (2011) sees it as influencing people so that they adhere to the vision of the leader, the goals he sets, and the tasks he assigned them to them willingly, without coercion or coercion. while some know it as the art of influencing others and directing them in a way that obtains their trust, respect and cooperation to accomplish the work and achieve the desired goals (al-ghamdi, 2013). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 134 www.americanjournal.org aish(2016) defined it as the leader’s ability to persuade and influence individuals and subordinates in order to improve their performance and carry out their duties in the best way, in order to achieve the group’s common goals in light of good human relations between them, and al-makawi(2013) also defined it as the leader’s ability to influence in the behavior of members of the group, coordinating their efforts and directing them to achieve the desired goals (filion, 2018). hence, leadership is of great importance in building organizations, as it is one of the effective methods for linking individuals and available resources in the organization together to achieve and accomplish goals and work that may be difficult or impossible to achieve without the participation and interaction between work members (haniyeh, 2016), so building organizations represent the process of interaction, cooperation and understanding between the leader and his subordinates. subordinates need a leadership that cares about their rights, respects their individual talents and capabilities, and works to provide a working environment and environment that contributes to raising performance, improving excellence and creativity, and enhancing responsibility towards taking risks. the process of effective leadership requires commitment they are subordinated to the controls and standards imposed by the leader regarding the duties and responsibilities that they must assume and perform them to the fullest extent (hariri, 2012). the importance of leadership also stems from the importance of providing a sound and vital management experience factor for the success of the organization’s work, as the issue of leadership is one of the main topics for the success of any organization. the fierce competition, and the ability to think rationally and on sound practical foundations, in addition to the importance of leadership revolves around the ability to reach solutions to the problems of any organization in the easiest and most beneficial way, where the leadership in general has the ability to properly employ all the activities of the administrative system, and the ability to putting each employee in the right place that enables him to achieve the greatest desired benefit to the organization, it is worth noting that it is difficult to provide the right leadership all the time. it is necessary for the leader to have experience, rationality, and the ability to make decisions in the correct form and time (al-makawi, 2013(. we note from the above that the importance of leadership lies in the fact that it is a link between employees and the organization’s plans and future vision, and that it is the only outlet; to strengthen the positive forces in it and reduce the negative aspects as much as possible, the successful leader is able to control and solve work problems, and the ability to unify the efforts of the organization, and reveal the weaknesses of employees, their development, training and care as they are the most important resource for the organization, and employees work to take the leader as a role model for them in various walks. research problem: in light of contemporary changes and future challenges, there is a need for strategic leadership practices to build organizations, which transform today’s organizations from traditional organizations to global organizations that master the art of dealing with the future with all its challenges, and the requirements of the current era necessitate special care for strategic leadership, as it is the leadership style necessary to achieve desired and effective progress of organizations. this is what was indicated by many studies, such as the study (khan, 2014), which dealt with the practice of strategic leadership and its effectiveness in building and developing organizations, and emphasized that it is an appropriate leadership style for leadership. it also recommended the need to american journal of business management, economics and banking volume 10 march, 2023 p a g e | 135 www.americanjournal.org adopt this style in organizations, given the dimensions, characteristics and tasks it contains the leader was able to successfully change and transform into a new situation that meets the aspirations and new requirements to build an effective organization, and responds to contemporary and future challenges. as the issue of building organizations is one of the complex matters that organizations seek to study, and this requires taking some studied risks and some proactive measures and creativity in business. hence the importance of the problem of this study, which is to reveal the role of strategic leadership practices in building independent organizations: an exploratory study of the opinions of a sample of workers in iraqi private banks. research questions: given the problem of the study, a set of questions were formulated, as follows: • what is the level of ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks ? • what is the level of ability to deal with strategic decisions from the point of view of workers in iraqi private banks ? • what is the level of possibility of expanding relations with influencers from the point of view of workers in iraqi private banks? importance of research the importance of this research stems from the following things: • its direct connection with the organized environment with the aim of employing strategic leadership practices in an effective manner and investing the latest modern leadership techniques to improve the organization's outputs. • the results of this research can provide field data that help decision-makers to design work environments that serve the organizational culture prevailing in the organization. • the results of this research may provide field data that help design effective results programs based on the strategic leadership practices of employees in iraqi banks. • the results of this research could pave the way for conducting other studies in this field, dealing with different research variables. 1. search limits: the limitations of this research are as follows : • spatial limits: the research was carried out in iraqi private banks . • time limits: this research will be implemented in 2021. • human limits: this research is limited to a sample of workers (male and female) in iraqi private banks . 2. research methodology: the research is a descriptive study, and at the same time it is an analytical study that aims to identify the role of strategic leadership practices in building independent organizations: an exploratory study of the opinions of a sample of employees in iraqi private banks; to make a comprehensive description american journal of business management, economics and banking volume 10 march, 2023 p a g e | 136 www.americanjournal.org of the data and information used in this research, and convert it from qualitative to measurable quantity, as this research was conducted in iraqi private banks. 3. data collection sources: in order to prepare this research, and achieve its objectives, the researcher is required to refer to two types of information sources, which are secondary and primary sources, explained as follows: • secondary sources: in preparing this research, the researcher relied on many sources of available information and data, which were collected for research purposes, by reviewing previous literature and studies, reviewing books and references related to the topic of research, and taking into account scientific materials and reports related to a topic in it, and the available information. on various approved websites. • primary sources: the researcher relied on the data and information available to him in preparing the questionnaire for this research, as it covered all aspects related to it, on which the hypotheses were built. and it was addressed in the research, in addition to the fact that the researcher distributed the questionnaire to the research sample. 4. study tool to achieve the objectives of the research, the study relied on the descriptive analytical approach for the purposes of data collection and answering the study questions. the first axis: it is one of the demographic variables of the research sample (gender, number of years of experience). the second axis: it consists of phrases that refer to the role of strategic leadership practices in building independent organizations. the researcher used the pentagonal likert scale to answer the research questions, through the following degrees: (a degree (1) expresses very little, a degree (2) expresses a few, a degree (3) expresses medium, and a degree (4) expresses high and a score of (5) is very high. and to explain the arithmetic averages of the estimates of the research sample members on each paragraph of the questionnaire and on each of its fields; the statistical criterion (five likert) was used, as shown below, and the following classification was relied upon to judge the arithmetic averages as follows: the length of the period = (the upper limit of the alternative the lower limit) / the number of levels (5-1) / 3 = 4/3 = 1.33, so the levels are as follows. 1.00-2.33 low from 2.343.67 medium from 3.685.00 high analysis of field study data 1. characteristics of the study population and sample members the study population consists of all employees of iraqi private banks, as the study sample consists of (98) workers under study, and the questionnaire was distributed by creating an electronic questionnaire american journal of business management, economics and banking volume 10 march, 2023 p a g e | 137 www.americanjournal.org and distributing it according to the characteristics of the sample, and the tables below show the results that were reached about the characteristics of the study sample members explained as follows: gender variable: frequencies and percentages of the demographic variable (gender) were calculated as shown in the table below: table (1): distribution of the sample members according to the demographic variable (gender). variable the level repetition percentage gender male 86 87.75% female 12 12.24% total 98 100 it was found from the above table that the number of males working in iraqi private banks amounted to (86) with a percentage of (87.75), while the percentage of females was (12.24), and their number was (12). age variable: frequencies and percentages for the demographic variable (age group) were calculated as shown in the table below: table (2): distribution of the sample members according to the demographic variable (age). variable the level repetition percentage age less than 30 years old 53 54.1 30 years less than 40 years 17 17.3 40 years less than 50 years 25 25.5 50 years and more 3 3.1 total 98 100 it is evident from the previous table (2) that the ages of the highest percentage of respondents in the study sample are those between the ages of 40 and less than 50 years, and their number reached 25 respondents, and they constituted (25.5%) of the total sample of the study, then those whose ages are more those under the age of 50 made up (3.1%) of the total sample of the study, then those under the age of 30 made up (54.1%) of the total sample of the study, then those between the ages of 40 and less than 50 made up (17.3%) of the study sample, the total sample of the study. experience table (3): distribution of the study sample according to years of experience variable the level repetition percentage age less than 5 years 54 55.1 5 years less than 10 years 30 30.6 10 years less than 15 years 13 13.3 15 years and more 1 1.0 total 98 100 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 138 www.americanjournal.org it is clear from the previous table (3) that (55.1%) of the study sample have experience of less than 5 years, which is the largest group among the approved groups in the study of this field, then the repetitive category that is from 5 years and less than 10 years and formed what at a rate of (30.6%), then respondents came from those with 10 years of experience less than 15 years, at a rate of (13.3%), and finally, those with experiences of 15 years and more came at a rate of (1.0%). 2. results of descriptive statistics for the fields of study presenting the results related to the variable axes: "the role of strategic leadership practices in building independent organizations": first: presenting the results related to the axis of "ability to deal with strategic decisions from the point of view of workers in iraqi private banks": in order to answer the first question, the arithmetic averages of the answers of the study sample members on the paragraphs of the axis "ability to deal with strategic decisions from the point of view of workers in iraqi private banks" were extracted, the tables below illustrate this: table (4): arithmetic means and standard deviations of the ability to deal with strategic decisions from the point of view of workers in iraqi private bank. ns phrases arithmetic average standard deviation 1. the strategy message of the organization is formulated according to the goal or purpose it is aimed at. 3.7 1.0 2. the strategic management practices are formulated in an understandable and clear manner that facilitates the construction and development of iraqi banks. 3.5 1.1 3. iraqi banks include the strategic objectives to be achieved in the long term. 3.4 1.4 4. the strategic mission of the organization is placed on a comprehensive analytical basis for all administrative levels. 3.2 1.6 5. strategic leadership practices are more comprehensive and general in focus on the strategies and policies pursued 3.7 1.3 6. as a whole 3.5 medium table (4) indicates that the arithmetic averages of (the ability to deal with strategic decisions from the point of view of workers in iraqi private banks) came at the average level, and the paragraph that states “the strategy message of the organization is formulated according to the goal or purpose it is aimed at." in the first place, with an arithmetic average (3.7), while the paragraph that states "the strategic mission of the organization is placed on a comprehensive analytical basis for all administrative levels." it ranked last with an average of (3.2). the general result indicates the presence of the average level from the point of view of the study sample, where the arithmetic mean of the general total was (3.5), and this indicates that the responses american journal of business management, economics and banking volume 10 march, 2023 p a g e | 139 www.americanjournal.org of the study sample were positive and with high and medium degrees distributed over the paragraphs of this field. as for the standard deviation values, they are high, and this indicates that the answers of the study sample are varying and far between in this area to some extent. second: presenting the results related to the axis "the ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks": in order to answer the first question, the arithmetic averages of the answers of the study sample members about the paragraphs of the axis "the ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks" were extracted, the tables below illustrate this: table (5): arithmetic averages and standard deviations of the ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks. ns phrases arithmetic average standard deviation 1. strategic planning seeks to build an integrated system that begins with strategic plans for the resources available in iraqi private banks. 3.0 1.3 2. preparing programs and training employees on how to use the resources in iraqi private banks. 3.4 1.5 3. preparing the necessary budgets to accomplish business and tasks inside and outside iraqi private banks. 3.5 1.2 4. work to lay the foundations for controlling the operations and activities that occur in the iraqi private bank. 3.6 1.0 5. as a whole 3.39815 medium table (5) indicates that the arithmetic averages of the ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks came at the average level, and the paragraph that states “work to lay the foundations for controlling the operations” and activities that occur in the iraqi private bank.” ranked first with an arithmetic average (3.6), while the paragraph that states “strategic planning seeks to build an integrated system that begins with strategic plans for the resources available in iraqi private banks.” it ranked last with a mean of (3.0). the general result indicates that there is an average level from the point of view of the study sample, where the arithmetic mean of the general total was (3.3), and this indicates that the responses of the study sample were positive and with high and medium degrees distributed over the paragraphs of this field. as for the standard deviation values, they are high, and this indicates that the answers of the study sample are varying and far between in this area to some extent. third: presenting the results related to the axis of "the possibility of expanding relations with influencers from the point of view of workers in iraqi private banks": in order to answer the first question, the arithmetic averages of the answers of the study sample members were extracted on the paragraphs of the axis "the possibility of expanding relations with influencers from the point of view of workers in iraqi private banks", the tables below illustrate this: american journal of business management, economics and banking volume 10 march, 2023 p a g e | 140 www.americanjournal.org table (6): arithmetic averages and standard deviations of the possibility of expanding relations with influencers from the point of view of workers in iraqi private banks ns phrases arithmetic average standard deviation 1. the possibility of expanding relations with influencers: whether from within or outside the organization, and to serve the aspirations and future options of iraqi private banks. 3.7 1.0 2. focusing on the aspect of internal and external alignment and striving to adapt to what is going on inside and outside the organization. 3.5 1.6 3. it adopts leadership practices based on the logic of strategic and integrative thinking to face current and future events. 3.3 1.3 4. tend to adopt an organizational culture based on respect for new ideas that contribute to the development of the organization and enhance its capabilities. 3.6 1.0 5. tends to be flexible in following work instructions and procedures to serve the goals of decision makers. 3.5 1.3 6. as a whole 3.52 medium table (6) indicates that the arithmetic averages of the possibility of expanding relations with influencers from the point of view of workers in iraqi private banks came at the average level, and the paragraph that states "the possibility of expanding relations with influencers: whether from within or outside the organization, and to serve the aspirations and future options of iraqi private banks." it ranked first with an arithmetic average (3.7), while the paragraph that states "it adopts leadership practices based on the logic of strategic and integrative thinking to face current and future events" came. it ranked last with an arithmetic average of (3.3). the general result indicates that there is an average level from the point of view of the study sample, where the arithmetic mean of the general total was (3.52) and this indicates that the responses of the study sample were positive, with high and medium degrees distributed over the paragraphs of this field. as for the standard deviation values, they are high, and this indicates that the answers of the study sample are varying and far between in this area to some extent. 3. results of testing hypotheses of the study multiple linear regression analysis is used to study the effect of several independent variables on a dependent variable. the explanatory independent variables may be continuous or categorical. here are the results of multiple regression to test the main hypothesis and sub-hypotheses: american journal of business management, economics and banking volume 10 march, 2023 p a g e | 141 www.americanjournal.org table (7): results of the one-sample test for the main hypothesis model r r square adjusted r square std. error of the estimate 1 .994a .986 .987 1.317 it appears from the tables that the value of (r) was (.994a) and (r square) was (.986). the value of (adjusted r square) is (.987), which represents the correlation coefficient of the overall model, and the value of (std. error of the estimate) is of (1.317), which represents the percentage of influence or interpretation of all independent variables on the dependent variable, which indicates the existence of effectiveness statistically significant at the significance level (0.05≥α) for smart educational programs in developing the creative thinking skill of people with hearing disabilities, and thus the first main hypothesis of the study is accepted and the alternative hypothesis is accepted. accordingly, anova was tested as follows : table (8): anova sample total squares degrees of squares average squares f . value "f" statistical indication regression 24550.318 3 8183.4 4708.01 0.000 residual 368.497 95 1.738 total 24918.815 98 it appears from the tables that the value of (f) was (4708.01) and (the statistical significance of "f" was (0.000). which indicates the consistency of the independent variable represented by the effectiveness of smart educational programs, with the dependent variable represented by the creative thinking skill, which indicates that the hypothesis testing was valid. table (9): results of applying the multiple regression equation to study the effect of independent variables on the dependent variable variable unstandardized coefficients standardized oefficients t sig b std. error β (constant) 8.279 .456 18.139 .000 1 1.033 .022 .462 46.527 .000 2 .936 .032 .356 29.456 .000 3 .941 .023 .425 40.167 .000 it appears from table (9) that the value of the coefficient of determination (64%), that is, approximately 64% of the changes in the role of strategic leadership practices in building independent organizations through an exploratory study of the opinions of a sample of workers in iraqi private banks, and this is due to each of the ability to acquire scarce resources in building independent organizations, the ability american journal of business management, economics and banking volume 10 march, 2023 p a g e | 142 www.americanjournal.org to deal with strategic decisions, and the expansion of relationships with decision-makers, all of which contribute to building organizations more objectively. results: based on the above table, a set of results related to the study variables are shown, as follows: there is a statistical effect of the level of ability to acquire scarce resources in building independent organizations from the point of view of workers in iraqi private banks. there is a statistical impact on the level of ability to deal with strategic decisions from the point of view of workers in iraqi private banks. there is a statistical effect of the level of possibility of expanding relations with influencers from the point of view of workers in iraqi private banks. recommendations: and based on the results that the researcher extracted, he extracted a set of recommendations that emphasize the importance of the role of strategic leadership practices in building independent organizations: an exploratory study of the opinions of a sample of workers in iraqi private banks, which were as follows: ✓ the necessity of conducting studies related to the role of strategic leadership practices in building organizations. ✓ building strategic leadership practices based on the analysis of the internal and external environments to identify opportunities in the external environment. ✓ conducting research related to strategic leadership and its impact on building organizations and their continuity, and field studies of the beneficiaries' needs. references 1. khan, m. w. (2014). identifying the components and importance of intellectual capital in knowledge-intensive organizations. universiti malaysia, faculty of economics and business, sarawak, malaysia. 2. al sheikh, abdul & aziz abdul rahman. (2008). leading school principals exercising their leadership functions in the kingdom of saudi arabia. unpublished master's thesis, king saud university, riyadh. 3. filion, murad, (2018), transformational leadership and its role in developing employee skills, amman: dar al-yazuri for publishing and distribution, jordan. 4. al-masry, ehab issa and tariq, abdel-raouf amer, (2013), educational leadership and communication skills, cairo: dar al-uloom for publishing and distribution, egypt. 5. hafez, abdel nasser alak and hussein, walid hussein abbas, (2016), leadership styles: the path to building a sustainable competitive advantage, amman: dar ghaida publishing and distribution, jordan. 6. haniyeh, muhammad anwar rushdie. (2016). the extent of strategic agility practice and its relationship to institutional performance excellence in the food industries sector in the gaza strip. the islamic university gaza, faculty of commerce, palestine. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 143 www.americanjournal.org 7. hariri, muhammad sorour. (2012). office management and effective and advanced executive secretarial skills (first edition edition). amman, jordan: al-warraq establishment for publishing and distribution. 8. al-shabanat, latifa abdul-rahman, al-shebl, noura abdullah, and al-mohi, hadeel abdulaziz. (2011). leadership theories and patterns. al-imam muhammad ibn saud islamic university, college of social sciences. kingdom of saudi arabia: ministry of higher education. 9. al-ghamdi, abdullah abdul wahed. (2013). administrative leadership (2nd ed. ed.). riyadh, saudi arabia: dar al-kifah for publishing and distribution. 10. aish, maryam. (2016). the role of administrative leadership in managing organizational change, a case study of the external bank of algeria oum el bouaghi agency -. oum el bouaghi university, faculty of economics, commercial sciences and management sciences. people's democratic republic of algeria: ministry of higher education and scientific research. 11. al-makawi, atef abdullah, (2013), administrative leadership, cairo: thebes foundation for publishing and distribution, egypt. 12. filion, murad, (2018), transformational leadership and its role in developing employee skills, amman: dar al-yazuri for publishing and distribution, jordan. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 62 www.americanjournal.org the main trends in the development of the automotive industry and the technical operation of cars anvar uralbayev samarkand state architectural and civil engineering university anvaruralbayev1986@gmail.com a b s t r a c t k e y w o r d s the article describes that one of the most important problems facing road transport is to increase the operational reliability of cars. it also considers ensuring the operability and realization of the potential properties of the car, incorporated during its creation (in particular, operational reliability), reducing the cost of maintenance and repair, and reducing the corresponding downtime. ensuring an increase in the productivity of transportation while reducing their cost, that is, increasing efficiency and ensuring environmental friendliness are the main tasks of the technical operation of the rolling stock of road transport. technical operation, car, resource, transportation, service, transport repair. introduction as an area of practical activity, the technical operation of vehicles is a complex of interrelated technical, economic, organizational and social measures that provide: 1) timely transfer to the operation service of the enterprise or external clientele of serviceable vehicles of the necessary nomenclature and quantity and at the right time for them; 2) maintenance of the car park in working condition when: ✓ rational costs of labour and material resources; ✓ regulatory levels of industrial, road and environmental safety; ✓ normative working conditions of the personnel. as a branch of science, the technical operation of vehicles determines the ways and methods of managing the technical condition of vehicles and their fleets in various conditions of use to ensure: ✓ timeliness and safety of the implementation of transport processes with the maximum use of the technical and operational properties of vehicles; ✓ the regularity and safety of transportation with the most complete implementation of the technical and operational properties of vehicles; ✓ given levels of performance and technical condition; ✓ optimization of material and labour costs; ✓ minimizing the negative impact of the car on the population, personnel and the environment. mailto:anvaruralbayev1986@gmail.com american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 63 www.americanjournal.org methodology & empirical analysis the efficiency of the technical operation of vehicles is ensured by the engineering and technical service, which implements the goals and objectives of the technical operation of vehicles. depending on the type of enterprises and their type of activity, the subsystem of the technical operation of vehicles can organizationally and economically act as: the production structure (subsystem) of a particular enterprise (truck convoy) or their associations (holdings), which, along with the use of machines for their intended purpose, maintains their fleet in working condition; an independent business entity providing paid services to owners of various vehicles of all forms of ownership. in the first case, the main contribution of the technical operation of vehicles is that it provides the subsystem of the production or commercial operation of the enterprise with efficient and technically serviceable vehicles, i.e. provides the very possibility of implementing the transport process. in this case, the task of the subsystem of production or commercial operation and management is to use serviceable cars most efficiently, receive income and pay off the system of technical operation of cars in accordance with its actual contribution to the transport process and the profit received. in other words, between the subsystems of an enterprise (or a group of enterprises), organizational, managerial and production and economic relations and connections are established. in the second case, which is widespread in market conditions, the technical operation system is transformed into a service system (service). service (service system) a set of means, methods and methods for providing paid services for the acquisition, efficient use, maintenance of operability, efficiency, production, road and environmental safety of motor vehicles throughout their entire service life. the contractor provides services to legal entities and individuals car owners (consumers) in accordance with existing rules. the consumer uses, purchases, orders car maintenance and repair services or intends to use them. the executor and consumer can be an enterprise, organization, institution, farmers or citizens. technical operation and service usually include the following main types of work and services in various combinations for different enterprises: ➢ selection and delivery of vehicles, equipment, spare parts and materials necessary for the enterprise or client; ➢ buy and sell new and used cars, units, their evaluation; ➢ pre-sales service and warranty repair; ➢ refuelling, washing, cleaning and storage; ➢ maintenance and repair of vehicles during their operation; ➢ instrumental technical inspection and preparation for it; sale of spare parts, materials, components and accessories; ➢ car rental and leasing; ➢ technical assistance on the line, evacuation; ➢ modernization, re-equipment and re-equipment of cars, tuning; ➢ collection and disposal of waste generated during the operation of vehicles, including the acceptance and recycling of decommissioned products; ➢ information support for car owners; ➢ training and consultation of personnel of enterprises, entrepreneurs, individuals car owners. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 64 www.americanjournal.org results in relation to a car, components are aggregates and mechanisms, and in relation to aggregates and mechanisms, parts. a car, a unit, a mechanism, a part can be united by a common concept an object or a product. the reliability of automobiles can be ensured, on the one hand, by increasing the reliability of their components at the design and production stages by manufacturing parts from new materials with higher performance properties, using high-performance and technological processes (electrospark alloying, laser processing, etc.), developing and substantiation of progressive design and technological solutions, etc., and on the other hand, by improving the methods and methods of maintenance, repair (the method of an additional repair part, the method of repair dimensions, etc.) and providing more favourable operating conditions (by way of justified determination of operating modes, which are determined by the conditions of lubrication, temperature and force loading, etc.). requirements for the reliability of machines are increasing due to the increase in the speed and intensity of use, engine power, load capacity and capacity of vehicles. the annually increasing age and number of vehicles in use, morally and physically obsolete repair and technological equipment of domestic enterprises, not always satisfactory quality of repair and maintenance, and insufficient professional level of repair workers and other reasons exacerbate the current situation and predetermine a decrease in the efficiency of using cars. thus, there is a need to develop such organizational, technical, technological, economic and social measures that would ensure the solution of the tasks set for the technical operation of vehicles. the main task of the discipline "technical operation of vehicles" is to train competitive engineers for the technical operation of vehicles based on the disclosure of patterns of changes in the technical condition of vehicles during operation, the study of methods and means aimed at maintaining them in good condition while economically spending all types of resources and ensuring industrial, road and environmental safety. the technical operation of vehicles, performing its tasks, contributes to an increase in the efficiency of enterprises, affects the amount of work performed, profits, labour productivity of personnel and the safety of production and related processes. this influence is provided by the technical operation of vehicles as a whole and its subsystems, which are called goal-realizing. these include the subsystem of the need for cars and the number of technical impacts; repair system; production and technical base of enterprises; system of logistics and quality of operational materials; brand and age composition of parks; terms of use. conclusions however, at present there are the following tasks of a practical and scientific nature: • a clear technical policy of the industry in the field of technical operation of vehicles has not yet been formulated, which was previously determined by the ministry for all enterprises, regardless of their departmental affiliation; • the development and provision of enterprises with modern authoritative regulatory and technological documentation has practically ceased; • without the practice of long-term acceptance operational tests of new equipment and materials and replacing them with short-term bench and laboratory tests, the industry was deprived of its own information base on real indicators of the quality and reliability of vehicles in operation, which american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 65 www.americanjournal.org previously allowed the state body, which represented the interests of numerous owners, to make reasonable demands on the performance of the fleet countries. the ongoing changes significantly increase the requirements for personnel and technical operation. changing forms of ownership and diversification of enterprises expand the independence and range of activities of specialists and, most importantly, increase the requirements for the validity of their decisions, the assessment of their economic, technical, social and environmental consequences. references 1. adilov o., abauazizov t. ensuring traffic safety on the platform. // materials of the republican scientific-practical conference "the most important problems of modern science and technology." jizzax 2004 212 st. 2. ubaydullaevich, u. a. 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(2019). оценка инвестиционной привлекательности акционерного предприятия. вестник ниц миси: актуальные вопросы современной науки, (22), 5-15. 14. аликулов, с. а., & ризаев, и. и. инновационное развитие узбекистана: вызовы и решения. 15. сиддиқий-ажзийнинг ижтимоий-фалсафий, ҳ. н. қарашлари//falsafa va hayot| философия и жизнь|| philosophy and life.-2020.-№ si-2б. 16. samatov, k. (2016). issues naqshbandi teaching peace and harmony in society. theoretical & applied science, (2), 175-179. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 66 www.americanjournal.org 17. ганиев, к., & ризаев, и. и. вестник прикамского социального института. вестник прикамского социального института учредители: прикамский социальный институт, (2), 156-162. 18. тураев, б. (2011). борлиқ: моҳияти, шакллари, хусусияти. т.: фалсафа ва ҳуқуқ. 19. mardonov, r. (2021, november). features of educational services in modern conditions. in archive of conferences (vol. 22, no. 1, pp. 100-103). 20. аликулов, с., & ризаев, и. и. (2021). образование и современные технологии. in моделирование и конструирование в образовательной среде (pp. 27-31). american journal of business management, economics and banking issn (e): 2832-8078 volume 4, | sep., 2022 p a g e | 43 www.americanjournal.org the effect of integration between smart audit and graceful accounting on reducing the cost of products mohammed frayyeh hassan dhi qar university, college of administration and economy, accounting department mohammedfr@utq.edu.iq a b s t r a c t k e y w o r d s this research aims to clarify the effect of integration between smart audit and graceful accounting to reduce the cost of products for industrial facilities and support their competitiveness. by defining the role of both smart auditing and the information resulting from it with the information resulting from graceful accounting and other information systems to provide a clear realistic view of the facility management about the costs of its products and the extent of its association with how its resources are consumed to support its competitiveness by controlling its products in a way that enhances improving its management. the researcher conducted a field study on a sample of iraqi industrial establishments, using a survey form. where the results of the field study indicated that achieving integration between smart audit and graceful accounting contributes to reducing the costs of products in industrial installations. smart audit, graceful accounting, reducing, cost, products. introduction the increase in the need for the information provided by accounting systems was accompanied to meet the needs of internal and external beneficiaries, increasing interest in developing methods used in the audit and documentation process to calculate the cost and control over them, and the need for advanced audit systems that provide strict control over the accounting system used to provide more accurate and appropriate cost data to take various decisions , which leads to the provisions of cost control, reduce losses, and then provide products at a lower cost to ensure competition, continuity and stay in the market. with the development of the business environment and the emergence of modern methods of manufacturing and the escalation of criticism directed at the continuation of the facilities by applying traditional methods in the manufacturing process that were valid for application in another environment. modern methods have emerged in accounting information systems that give information capable of creating internal integration between the functions of the various facilities as well as american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 44 www.americanjournal.org external integration that allows the participation of information with customers and suppliers and the rest of the users in all their categories, accompanied by a reduction in duplication of data, improving productivity, reducing cost, and increasing customer satisfaction this leads to improving the facility's ability to exploit its resources is the best possible exploitation as the integration between smart audit and graceful account the effectiveness of the supply chain through stock management, work arrangement and completion of the purchase in order to reduce production costs. therefore, this study came to clarify the effect of integration between smart audit and graceful accounting to provide accurate and appropriate data to support the performance of industrial facilities to achieve reducing the costs of their products. 2-research framework 2-1research problem: in light of the limited resources, the expansion and openness of the markets and the rapid transformations in the methods and priorities of the establishments and the transformation from the method of payment to the way to withdraw in production. the facilities adopted the concept of orientation in the market, that is, the production of what can be marketed instead of marketing what can be produced, but it is quickly shift from the marketing concept to the concept of the product value, which is the concept in which the facility sees that the value of the product is the source of survival and profitability, and this value depends on the vision customers and their evaluation of the product specifications, as these specifications are indicative of the facility's ability to manage the design and manufacturing. in order for the facility to reach this ability, it must adopt and apply tools and methods that work to improve and develop operations and activities and determine their cost precisely. in addition to providing financial and non -financial information and data that are appropriate for planning, supervision and decision -making, among these tools are smart audit and graceful accounting, which is one of the most important developments that contribute to helping the administration in the effective use of resources and by providing an integrated set of reports and data that provide information on how efficient exploitation of available resources and employing unemployment, which contributes to increasing productivity and reducing cost. in light of this, the search problem can be formulated through the following questions: awill the implementation of the facility to smart audit tools help in activating graceful accounting to provide realistic and clear information to manage the facility about the costs of its products and the extent of its association with how to consume its resources. bwill the establishment of the facility for graceful accounting tools will increase the effectiveness of smart audit to provide realistic and clear information to manage the facility about the costs of its products and the extent of its association with how to consume its resources. cis the integration between smart audit tools and graceful accounting leads to providing realistic and clear information to managing the facility about the costs of its products and the extent of its association with how to consume its resources. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 45 www.americanjournal.org 2-2research objectives: the objectives of the research can be specified as follows: a the facility’s application of smart audit tools will help activate lean accounting to provide realistic and clear information to the facility’s management about the costs of its products and how they relate to how its resources are consumed. b the facility’s adoption of lean accounting tools will increase the effectiveness of smart auditing to provide realistic and clear information to the facility’s management about the costs of its products and how they relate to how its resources are consumed. c the integration between smart auditing tools and agile accounting leads to providing realistic and clear information to the management of the facility about the costs of its products and how it relates to how its resources are consumed. 2-3research hypotheses: in light of the research problem and in order to achieve its objectives, the research hypotheses were formulated as follows: athe first hypothesis: the facility’s application of smart audit tools activates lean accounting to provide realistic and clear information to the facility’s management about the costs of its products and how they relate to how its resources are consumed. bthe second hypothesis: the facility’s adoption of agile accounting tools contributes to the effectiveness of smart auditing to provide realistic and clear information to the facility’s management about the costs of its products and how they relate to how its resources are consumed. cthe third hypothesis: the process of integrating between smart auditing tools and agile accounting leads to providing realistic and clear information to the management of the facility about the costs of its products and how it relates to how its resources are consumed. 2-4the importance of research: the importance of research is due to the following: aalthough there are many studies that dealt with smart audit and graceful accounting. however, this research acquires the importance of the absence of studies that have studied the impact of integration between smart audit and graceful accounting on reducing the cost of products, and highlighting the vital and important role that information plays from achieving integration in conducting the work of facilities and making decisions efficiently, effectively and economically. bit is expected that the results of this research will provide evidence of the benefits that can be achieved, perhaps it contributes to achieving the aspirations of business facilities in the areas of reducing the costs of products, maximizing the return and exploiting time and effort, which gives a competitive advantage to it and increases its continuity. 25research methodology: the research methodology is: athe deductive product when eating the conceptual framework for the role of smart audit and graceful accounting in providing appropriate information for the facility management, to take rational decisions to reduce the costs of products and to derive the search assumptions. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 46 www.americanjournal.org bthe inductive product in choosing the assumptions by investigating the expected interest in achieving integration between smart audit and graceful accounting to reduce the costs of products in industrial facilities. 2-6research plan: in the context of an attempt to search to answer the research questions set, and to achieve the research goal, the researcher organized the research plan as follows: first/previous studies second/smart audit third/graceful accounting fourth/integration between smart audit and graceful accounting as an entrance to reduce cost. fifth/field study, then the results and recommendations of the search are followed. 3previous studies: a-study arsanyos (2012) the study aimed to take smart applications such as artificial nervous networks in developing the work of the external auditor on the misleading financial statements and the extent to which these networks contribute to the accuracy of the auditor's work and the detection of misleading financial statements. the study found the need to adopt professional organizations that are concerned with the audit process of artificial intelligence methods in checking due to the benefits offered by these methods. b-study brave 2015) ) the study aimed to explain the role of graceful accounting tools in reducing costs and concluded that the use of graceful accounting tools (value chain, targeted cost, reserve reduction) has an impact in the cost reduction directly and indirectly, and the study recommended the need to adhere to the application of graceful accounting tools. c-study dawoodi (2016) the study aimed to analyze the steps of applying graceful accounting within the cost method on the basis of activities, because of this method of allocating costs fairly to activities, which is in line with the modern manufacturing environment. the most prominent finding of the existence of a positive impact on the application of graceful accounting tools, as it leads to getting rid of activities that do not add value to the product, which leads to a reduction in the costs of activities. d-study al-lami (2020) the study aimed to clarify smart applications on fraudulent practices in supporting auditors and improving their tools in revealing various fraudulent practices that are difficult to discover by using traditional methods in the audit process due to the development of fraud methods practiced by departments and benefit from gaps and flexibility in applying accounting principles and rules. the study found the possibility of using artificial intelligence applications in the audit process to detect fraudulent practices and recommended to use them by the auditor to increase confidence in his professional opinion. 4smart auditing: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 47 www.americanjournal.org for the purpose of reaching an inclusive definition of this term, it is necessary to define the word audit (censorship) and then the smart word (intelligence). where the audit is defined that it is a neutral independent work that is implemented by professionally and practically qualified persons to ensure the sincerity and integrity of the financial statements prepared by the facility in accordance with the applicable rules and principles in force and give a neutral artistic opinion. as for smart or (intelligence) of modern smart applications, or the so -called artificial intelligence applications in the audit process, such as artificial nerve networks, expert systems and genetic algorithms. so smart audit can be defined that it is the practice of audit using artificial intelligence to discover violations or practices that installations may undertake in financial statements (allami, 2020) 4-1the most important artificial intelligence applications in the field of audit: the expansion of the use of many technological applications in the world of trade and business and began to spread these applications to include the script of the script such as (the risk of audit, internal control evaluation, planning for the review process (duke: pp. 91-93 : 2013) planning the audit process (kokivaara. pp.1062: 2000) determining the ability to continue (dweik, pp. 94-98 , 2013), estimating the risk of fraud and manipulation in the financial statements (lin & becker, pp. 659-660 : 2003) writing the report (dweik, pp. 99: 2013.) the audit is a means that serves a multiple set of bodies that depend on accounting data in making its decisions or drawing its future policy. 4-2-the most important beneficiaries that depend in their decisions on the results of the audit process: 4-2-1project management: project management depends on the financial statements that are examined through the audit process, in drawing its vocal and pricing policy and taking a number of decisions related to planning (bishop, pp. 19: 2000) 4-2-2investors: the main pillar in making strategic decisions by investors is the financial statements that are examined, scrutinized and express an opinion, and those decisions (selling or buying shares, assessing the efficiency of management performance, evaluating the establishment of the facility). (abu nassar, pp. 6: 2008) 4-2-3suppliers and creditors: they are concerned with information related to the facility's credit center and the extent of its ability to fulfill its obligations (winner, pp. 68: 2020.) 4-2-4 the government and its relevant departments: this category needs accounting information to verify the extent of the establishment’s commitment to laws and legislation and calculate the taxes resulting from it. 4-2-5employees and trade unions: this category uses audited information related to the extent of job safety, to enhance negotiations related to the general policy of wages, improve employee conditions and obtain advantages. (winner, pp. 69: 2020.) 5graceful accounting: it is a new approach to accounting and resulting from enhancing companies ’interest in adopting the philosophy of graceful thinking that is based on a waste -free system and seeks to delete, prevent or reduce losses in operations and activities, and in turn it consists of several systems aimed at making american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 48 www.americanjournal.org the maximum benefit from the available resources and capabilities. initially, the production system was associated, but over time all activities and operations included, including the accounting system. so graceful accounting aims to obtain the correct accounting work and is characterized by quality and careful report and work to continuously improve accounting work. this is to support the graceful facility that seeks to move from traditional accounting methods to a system that stimulates business practices that add value to the facility. (ammar, pp. 61: 2015.) 5-1graceful accounting principles: select (touch point change, ltd: 2008) five principles of graceful accounting: value: it is the value generated from the customer's point of view the value of the value: it is all steps that accompany the process at all its stages. flow: is the flow of practical value. displacement: it means producing what can be sold, not selling what can be produced. -perfect: seek to achieve maximum satisfaction for the customer continuously attempts to produce what he wants. 5-2the concepts of agility in accounting processes are evident: fitness means excluding and eliminating or reducing waste in activities and operations, and this must be applied to traditional accounting systems by getting rid of all forms of waste and extravagance accompanying the operations and unnecessary procedures in accounting systems, and therefore the graceful accounting system can be applied to financial and service activities, in the form that enables during it providing information, reports and standards quickly and easily, as it does not require complex and wasted operations for time and effort and it serves the modern manufacturing environment in terms of excluding activities and operations that do not add value. as graceful accounting does not require traditional administrative accounting methods such as (standard cost, cost on activity, deviation report, cost pricing, complex procedural control systems, complex or inappropriate financial reports) and all of this will be replaced by the following: -standards of graceful performance: summar and simplify the direct costs of the value current use the points box to make decisions and to prepare reports. providing financial reports in an easy language at an appropriate time. remove procedural control systems. pricing on the basis of the realized value of the customer (ammar, pp. 67-67 : 2015.) 6-integration between smart audit and graceful accounting as an input to reduce cost: the smart auditing process based on the use of artificial intelligence and the use of the benefits it provides in discovering the practices and violations that occur in the financial statements, leads to increased reliability of the data and information provided by this installations on the one hand, and on the other hand, it drew the administration's attention to the defect points that accompanies the operations in a way that can management is to classify activities that consume resources that do not add value and direct their attention to activities that add value. in addition to shortening the time and effort made because the process is the list of smart applications that contain many advantages, the most important of which are: (alamy, p5: 2020) american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 49 www.americanjournal.org it depends on mathematical foundations. tradition of the human mind. the ability to accept a large number of data. storing knowledge through operations. high speed in dealing with data. flexibility to operate. continuity at work. (al-otaibi. p13: 2003) the researcher believes that he mainly eliminates the loss in time and effort and helps to build a system to monitor the costs of facilities and subject them to adherence to the rules, standards, policies and procedures and not to exceed them, as well as the information it provides on unemployed energy and thus not to download the product unit at this cost, which leads to a reduction in the cost of the product. as for the graceful accounting that reduces the need for reports and measures of analysis of small values. this means that graceful accounting aims to reduce waste and loss in resources and activities that do not add value to the production process. in addition to the many positives provided by graceful accounting such as providing larger space for work, increasing productivity and raising and improving the quality of the product, reducing the time for applying for applications, reducing the damaged in the production process, efficient use of available resources, reducing cost. it is clear that the main goal of graceful accounting is to get rid of losses or waste, which represents the best method for reducing costs (awad allah and friend, pp. 111: 2015). it is evident that the integration of smart audit and graceful accounting and through the accurate and reliable information they provide that helps the administration to distinguish between activities that do not add value and disposal, and the activities that add value and attention to them and conduct the process of continuous improvement on them, has a positive impact on reducing the cost of products. the following form shows the integration framework between smart audit and graceful accounting and its impact on reducing the cost of products american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 50 www.americanjournal.org 7field study figure no. (1) the integration framework between smart audit and graceful accounting of an entrance to reduce cost source: prepared by the researcher american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 51 www.americanjournal.org the researcher relied on the survey list as a way to collect the data needed to achieve research goals. where the investigation form is designed on the basis of the five -year likert scale in order to determine the answers of the research sample personnel, and the following weights are given to the paragraphs: strongly agree agree neutral not agree strongly disagree 5 4 3 2 1 7-1research sample: the research sample was chosen, which will be directed to the investigation form from a group of academics in universities, specialization of accounting, financial managers and accountants in a group of industrial facilities, cost accountants and engineers in those facilities. where (90) investigations were distributed ( 20 % academics and another 80% ), (81) survey lists were received. the number of correct survey lists reached (76) lists, and (5) lists were excluded for their lack of suitability. 7-2test the reliability and validity of the survey list: statistical package for social scienes was used to perform the statistical analysis package (spss) to apply the cronbachs alpha test on the survey list to show the homogeneity of the variable items used in the measurement. where it was found that the reliability coefficient is (0.878) and the content validity is (0.915), which indicates that the internal consistency of the phrases used in the research is strong and highly acceptable. 7-3testing the first hypothesis, which states that “the facility’s application of smart audit tools leads to activating lean accounting to provide realistic and clear information to the management of the facility about the costs of its products and how they relate to how its resources are consumed.” table no. (1) shows the results. table no. (1) ranking percentage average strongly disagree not agree neutral agree strongly agree ferries no. 3 85,2 4,26 20 16 40 the application of smart audit tools leads to the integration of the jobs performed in the account department 1 10 49 2,45 13 28 25 8 2 smart control and audit provides optimal use of the facility's resources, which reduces the cost of production 2 6 78,68 3,93 1 9 15 20 31 the application of smart audit tools helps to track the resources used from the design stage to the delivery stage 3 5 80,79 4,04 11 10 20 35 smart audit helps to determine productive energies and thus determining unemployed energy and sorting their cost 4 4 83,4 4,17 5 12 24 35 the application of technology in the audit helps to determine the cost accurately 5 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 52 www.americanjournal.org 1 92,8 4,64 6 15 55 the use of smart audit tools leads to the detection of fraud that occurs in the financial statements 6 7 75,53 3,78 3 12 12 21 28 the implementation of the facility for smart audit tools reflects a positive image of the facility towards society 7 2 91,6 4,58 0 0 6 20 50 smart audit enhances confidence in the data and information issued by the facility 8 8 66,6 3,33 8 10 25 15 18 truth, accuracy, and fairness of data and information contributes to setting standards for financial and non -financial performance 9 9 50 2,5 25 18 8 20 5 non -financial performance measures such as customer satisfaction and delivery on time value information 10 75% 3,75 total it appears from table no. (1) that the first three ranks (first, second, third) were obtained by phrases with sequences (6), (8) (1), respectively, with relative importance of (92,8), (91,6), (85,2), respectively, and an average of (4,64), (4,58), (4,26), respectively, while the last three ranks (eighth, ninth, tenth) were the share of phrases with serials (9), (10), (2), respectively, with the importance of a percentage of (66.6), (50), (49), respectively, and an average of (3,33), (2,5), (2,45), respectively, and it becomes clear from previous analysis that the application of smart audit tools leads to the activation of graceful accounting to provide clear information to the administration and with a relative importance of (75%) and an average of (3.75), and this means proving the first assumption that the application of the facility for smart audit tools leads to the activation of graceful accounting to provide realistic and clear information to manage the facility about the costs of its products and its association with how its resources consume. 7-4the second hypothesis test, which stipulates "the facility's followers of graceful accounting tools contribute to the effectiveness of smart auditing to provide realistic and clear information to management of the facility about the costs of its products and the extent of its association with how to consume its resources" and table no. (2) shows the results. table no. (2) ranking percentage average strongly disagree not agree neutral agree strongly agree ferries no. 3 89,21 4,46 0 5 8 10 53 treating sagging problems in accounting work and reducing routine at work to improve communication between departments 1 1 89,8 4,49 0 3 8 17 48 ease of understanding and convenient reports provided by graceful accounting 2 4 86,32 4,32 0 0 13 10 53 providing information on how to manage production energies 3 8 77,6 3,88 5 6 7 33 25 enable the process of making rational decisions by reducing 4 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 53 www.americanjournal.org the need for analysis measures for almost indelible values 6 84,8 4,24 2 2 11 22 39 reducing waste and loss in resources and activities that do not destroy value 5 7 82,4 4,12 1 3 12 30 30 achieving customer satisfaction by improving the quality of the product and reducing the time to prepare applications 6 9 77,4 3,87 5 8 5 32 26 improving work structure, encouraging and motivating employees and reducing costs 7 5 85,2 4,26 3 3 5 25 40 provide control procedures for the value of the value and reduce the error 8 2 89,4 4,47 1 1 9 15 50 the arrival of the necessary information in time to reduce the cost, effort and time 9 10 61,6 3,08 8 10 23 15 20 access to the ability to determine the value of the product from the point of view of the work 10 82% 4,12 total it appears from table no. (2) that the first three ranks (first, second, third) were obtained by phrases with sequences (2), (9), (1), respectively, and with a relative importance of (89,8), (89,4) , (89,21), respectively, with an average of (4,67), (4,49), (4,46), respectively, while the last three ranks (eighth, ninth, tenth) were the share of the ranks (4), ( 7), (10), respectively, with a relative importance of (3,88), (3,87), (3,08), respectively, and an average of (77.6), (77,4), (61,6) concerns. also, the previous analysis indicates the feasibility of following the facility for graceful accounting tools, as it contributes to activating the smart audit to provide realistic and clear information to the facility management about the costs of its products and the extent of its association with how to exploit its resources and with a relative importance of (82%) and an average of (4,12) and this means accepting the imposition second. 7-5the third hypothesis test, which stipulates "the integration process between smart audit and graceful accounting tools provides realistic and clear information to the facility management about the costs of its products and the extent of its association with how to consume its resources" and table no. (3) shows the results. table no. (3) ranking percentage average strongly disagree not agree neutral agree strongly agree ferries no. 2 89,21 4,46 0 0 10 21 45 provides basic information on the facility's resources and the costs of these resources helps in making decisions 1 7 81,4 4,07 3 6 13 15 39 provides important information about the expected costs of implementing activities and operations at the product design stage, which helps the administration to make the appropriate decision 2 1 90,8 4,54 0 0 9 17 50 classification of activities to a value and non -host host, which helps in the accuracy of the cost allocating 3 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 54 www.americanjournal.org 8 79,2 3,96 4 5 11 26 30 efficiency in consuming resources, reducing the delivery time for customers and quality control, which leads to enhancing competitiveness 4 4 86,8 4,34 0 1 9 29 37 providing non -financial information such as customer satisfaction, job satisfaction, and a positive view of society towards the facility 5 9 73,4 3,67 0 0 8 17 51 providing information information on unemployed energies and thus excluding their costs from the cost of the product 6 5 84,2 4,21 4 2 9 20 41 providing operational measures to rationalize production decisions in a competitive environment 7 10 72,8 3,64 7 13 9 18 29 focus on accurate cash flows that support the decision -making process 8 6 81,6 4,08 1 11 7 19 38 providing information about the suppliers chain and the excellence of those who are not committed 9 3 87,2 4,36 0 1 12 21 42 helps continuously improve and try to reduce losses in a way that reduces costs 10 it appears from table no. (3) that the first three ranks (first, second, third) were obtained by phrases with sequences (3), (1), (10), respectively, and with relative importance of (90,8), 89,21), (87,2), respectively, with an average of (4,54), (4,46), (4,36), respectively. while the last three ranks (eighth, ninth, tenth) were the share of phrases with serials (4), (6), (8), respectively, with a relative importance of (79,2), (73,4), (72,8 ) respectively, with an average of (3,96), (3,67), (3,64), respectively. it is also clear that the average group of this group reached (4,13) with a percentage of (83%) while the average of the first and second groups (3,75), (4.12), respectively, and its percentage was (75%), (82% ) straight. this indicates that the effect of the application of smart audit tools on the activation of graceful accounting on the one hand and the effect of following the tools with accountability on the effectiveness of smart auditing on the other hand, has resulted in the results and less effects compared to the results and effects of integration between them together in order to provide accurate and appropriate information to make rational decisions. this indicates the acceptance of all three research hypotheses due to the average rise in the three cases, in addition to the increase in the percentage to (75%), (82%) and (83%), respectively. conclusions asmart audit is based on the use of advanced technology in the audit process, such as the use of artificial nerve networks that mimic the human mind and be able to absorb and process a huge amount of data, continuity, and extract accurate results and with a brief time aimed at providing information on a high degree of reliability for management and beneficiaries to make decisions rachida in all fields, including allocating costs fairly, in a way that reduces the cost of the final product. bthe importance of smart audit is not limited to being a new strategy and must be applied in facilities, but rather a useful tool that reflects the continuous development of the aim of maintaining the accuracy american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 55 www.americanjournal.org and sincerity of the data and information based on the decisions, as well as working to create a continuous technological development. cthe application of graceful accounting in integration with smart audit leads to the determination of unemployed energy, which leads to the accuracy of allocating costs to activities and productive processes through the accurate tracking of its paths, which reduces the cost of the productive unit. dthe integration between graceful accounting and smart auditing provides important information about the host activities of value and the non-host activities of value and disposal, which leads to the accuracy of making decisions and reducing costs. ethe results of the field study showed the need to work to create integration between smart audit and graceful accounting tools due to the positives achieved by this integration, the most important of which is a high level of accuracy in the measuring products of products, and achieving high rates of flexibility and speed in dealing with conditions, accuracy and speed in preparing financial reports, and tightening control procedures for all joints of the facility. recommendations in light of the conclusions reached, while the most important recommendations are: athe researcher recommends the necessity of using smart audit tools and applying graceful accounting tools and complementarity between them due to the logical characteristics of this integration represented by the accurate tracking of the cost elements and their paths, which reflects positively on the accuracy of their allocation to activities and operations, as well as the information provided by this integration that helps in control of excessive unemployed energies and work to guide and employ available resources and distinguish between activities that add value and activities that do not add value. bthe necessity of drawing, formulating and implementing clear strategies aimed at exploiting unemployed energies and spending resources efficiently, effectively and economically, as long as one of the outputs of integration between smart audit and graceful accounting is to provide information related to energies and resources. cworking to apply graceful accounting tools in a broader way in facilities and integration with smart audit because of this integration playing an important role in providing the information necessary to achieve the requirements of controlling the facility's resources, which helps in the optimal use of these resources and reduce the losses from them. ddeveloping awareness among the facility managers of the importance of the practices of graceful accounting tools and smart auditing in cost management and their role in providing appropriate information to take decisions and contribute to the planning and oversight process in order to reduce production costs. sources: a-arabic: 1. al-lami, fayez abdul hussein, “a proposed form for the role of external references in the disclosure and report on profit management practices using artificial neurological networks and his reflection on the decisions of the beneficiariesapplied study“ phd thesis, presented to the faculty of commerce, benha university, 2020. 2. al-dawawudi, ui mahdi hamid, “integration between graceful accounting mechanisms and cost american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 56 www.americanjournal.org applications on the basis of activitiesa case study in the general company for southern cement najaf cement factory”, master thesis in financial and accounting technologies, introduction to the college of administrative technology, middle euphrates university technology, 2016. 3. al-duwaik, musab muhammad zuhair and al-salem, muhammad akram, “the effect of the use of expert systems on developing performance in external audit”, college of business, department of accounting, oman arab university, 2013. 4. abu nassar, muhammad hussein, and hamidat, juma falah, “international financial accounting and reporting standards (theoretical and practical aspects), wael publishing house, amman, 2008. 5. burch, ghassan falah, "contemporary auditingtheoretical aspect", dar al-masirah for publishing and distribution, jordan, 2000. 6. ammar, d. safaa mohamed ahmed, "the role of gregorian accounting in the continuous improvement of the total performance of the facility", magazine of financial and commercial research, faculty of commerce, university of port said, 2015. 7. awadallah, linda alish and the friend, babiker ibrahim, "the effect of integration between accounting for resource consumption and the graceful accounting system in reducing costsa field study on some food industries companies in sudan", journal of economic and administrative sciences, volume 19, no. 1, 2018. 8. shuja, mukhallad fouad, “the role of gregorian accounting in cost reducingapplied study on fine health paper company”, master thesis in accounting, introduction to the college of business, middle east university, 2015. b-foreign sources: 1. a study (arsonyos , 2012) entitled (a pilot study of the use of neural networks to develop the role of the auditor in the misleading financial data report). 2. al-otaibi , fawzi , badr , "the use of tim – series neural networks in predicting indices" master thesis in applied statistics , suez canal university , porras phand , egypt , 2003. 3. allami , faez abduhasan jasim , "the role of smart auditing in detecting frandulent oractices in the financial statements : a suggested model" international journal of innovation , creativity and change , vol.13 , issne 5 , 2020. 4. kokivaara , e. , "artificial neural network models for predicating patterns in auditing monthly balances" , journal for the operation research society , vol.51 , no.9 , 2000. 5. lin, j.w. & hwang , m.i & becker , j.d. , "a fuzzy neural network for assessing the risks of fraudulent financial reporting" , managerial auditing journal , vol.18 , no.8 , 2003. 6. touchpnit change ltd , "an introduction to lean thinking" , visit www.touchpintchahnge.co.uk.2005. http://www.touchpintchahnge.co.uk.2005/ american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 96 www.americanjournal.org commercial issues in islamic spirituality tojiboev abdug’ani abdumalikovich head teacher of tta al a b s t r a c t k e y w o r d s the article describes the rules of commerce, trade, and law in islam. local market, regional market, national market and world market are mentioned which show the prestige and glory of the cities. shariah, deposit, halal, usurer, hadith, commercial, measure, state, adult, quantity, amount, added value. introduction the emergence of views on the issues of the economic life of society is the result of a long historical development. such views exist in the history of all countries and peoples of the world. in different periods of historical development, the leading people of those times expressed their attitude to the events in the economic life of the society at one level or another, and expressed their views on this matter in different forms and at different levels. the merits of the great thinkers who lived and worked in the arab region are at the core of such views. in their ancient, historical, and artistic works, they put forward their valuable opinions on the issue of economic life and economic relations of the society. of course, it is impossible to study the views of great thinkers on economic relations without separating them from the period in which they lived. the main reason for this is that the main factor in their world views was the economic and political order of those times, the methods of state administration. therefore, in their works, the heads of state gave important information about the working methods of the rulers and their officials, about the people's struggle against the invaders and about the heroes who emerged from them. in the society and state of feudalism, islamic ideas occupied the main place. in islam, internal conflicts have developed and various ideological political currents have arisen. all of them served to ensure the economic, political and spiritual domination of the ruling classes over the oppressed classes. the economic views that arose on the territory of the arab countries were expressed in the works of scientists and historians who lived in different periods. since ancient times, great economic thinkers have appeared in arab countries. in their works, one of the most important and necessary branches of human activity, trade and commerce, are described in detail. this is a very natural situation, because business is one of the most common activities in islam. all big and small cities and villages in the east had a market first of all, without a market a city was not a village and could not be. a grassy, watery, desert village is good. if every city does not have a bazaar makhtumkuli american journal of business management, economics and banking volume 11 april, 2023 p a g e | 97 www.americanjournal.org the prestige and fame of the city was directly related to its location on the trade route, the number of markets and their prosperity, and their prices, types and varieties of products, the number of merchants coming and going from which countries, the abundance of caravanserais, guest houses, and places of pilgrimage. the market is also classified according to its scale. in this regard, there is a local, regional, national and global market. a local market is a small market, for example, within a village or district, in which mainly local sellers and buyers participate, and most of the goods sold are owned by the locality. a regional market is a market within a large territorial boundary. here, not only local residents, but also foreign sellers and buyers come into contact with the market. for example, the regional market in the lower amudarya is the market in khorezm region and karakalpakstan. national market is a single market within the national border of a particular country, it consists of a complex of different markets. all artisans, residents, government organizations and partially foreigners of a particular country participate in this market. national markets differ from each other in terms of their size, composition of goods, number of buyers and sellers. the world market is an international market in which firms and government agencies from different countries participate, where goods developed in different countries are traded. wholesale trade takes place in this market, the most important products (wheat, cotton, wool, coal, metal, oil, gas, etc.) are sold and bought. indeed, the east is a large market, and the fact that the development of culture, art, science, and handicrafts in such global cities as baghdad, damascus, istanbul, bukhara, samarkand, and tashkent is related to the commercial development here certainly does not require any proof. the development of the country is not an airy concept, but a concrete movement, the basis of this movement begins with the initiative of each person. in other words, even if each person buys a product from his country, it seems like a particle for the country's development, but it is from those particles that development begins. in the east, these are the general actions of managing and managing commercial affairs, which have provided and determined the life, livelihood, and well-being of thousands and millions of people, and the establishment of mutual relations between the person who prepares goods for trade, the seller and the buyer of these goods, on the basis of certain laws and regulations. in the 11th century, in most cases, it was built on the basis of sharia. sharia laws also set certain conditions for the conclusion or cancellation of commercial transactions, for example, if it is revealed that a lie or fraud has occurred in this transaction: if the seller wants to increase the price of the goods in the buyer's eyes, and gives and receives it at a price higher than its value. if the fault or poor quality of the goods is public. if a part of the sold goods is overstated in the sale, and what they say is not true, the sale transaction is considered canceled. the issues of establishing trade companies are also clearly stated in the shari'ah. for example, a member of the company has absolutely no right to make a condition that one of the partners is more entitled to the profit from the sale than others, or to transfer the loss he has suffered to others. however, shariah allows to exclude one or two people from trading or to allocate more income to someone, only if the parties mutually agree. also, according to the laws of sharia, none of the partners has the right to sell or buy goods on credit without obtaining the consent of the parties. if one of the partners dies or becomes insane, the other member cannot manage the common property and income alone until the issue of his expulsion from the partnership is resolved. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 98 www.americanjournal.org it is clear from the above-mentioned legal provisions that in islamic practice, commerce is considered to be a business of great economic importance. therefore, for several centuries, even the highest rulers of all muslim countries have been encouraging trade and commerce in every way, making it one of the main income sectors of the state, and they have been following the example of rasulullah in their work. from the early days of the first islamic community in medina, muhammad rusullah himself paid close attention to commercial issues. the hadiths of the wise words of the lord of the universe are a clear proof of this, some of which we will cite as examples. the best of the profession is the honest trade of what one does with one's own hands. three people will be condemned to hell on the day of resurrection because of unjustly misappropriating people's wealth: avoid swearing during trade! because he first increases the profit and then destroys it. the negotiators are reserved (have the right to break the deal) until they break up. both of them will be successful in their trade if they speak the truth and openly tell the fault of the goods. if they lie and hide the fault of the goods, the blessing of trade will be lost. a cowardly merchant is deprived of wealth, and a fearless merchant is lucky. bringing foreign goods to our markets is like an aspect in the way of allah. get your money honestly, even if it's perfect or a little! whoever knowingly buys stolen goods, he is a partner in the crime of this theft. it is not in islam to raise the price of goods that one does not know about in trade. today, it is impossible not to emphasize the economic sector, which is growing rapidly in the development of our country. it is not for nothing that our president emphasizes in every speech about pleasing the people and improving the economy. the only goal is the benefit and welfare of the people. references used 1. мирзиёев ш.м. миллий тараққиёт йўлимизни қатият билан давом эттириб янги босқичга кўтарамиз т.: “ўзбекистон”, 2018. 2. хомидий х. “кухна шарқ дарғалари” т. 1999. 3. тожибоев а.а., асатуллаева м.н “иқтисодий таълим-тарбия жараёнида маънавий меъросларидан фойдаланиш” тошкент, касб хунар таълими №1 2005. 4. тожибоев а.а. “иқтисодиёт эркинлиги – фаровонлик манбайи”. т. 2007. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 33 www.americanjournal.org the problem of practical guidelines in teaching mathematics in technical schools u. ya. turayev jizzakh polytechnic institute, jizzakh city, uzbekistan a b s t r a c t k e y w o r d s nowadays, the problem of solving many issues in rural areas is horizontal. these issues are social, ecological, demographic, economic, cultural and educational. in order to solve these issues, there is a need for highly qualified personnel in all fields in the villages. it is impossible to be a good specialist without fundamental mathematical knowledge. it is known from experience that conducting practical training with a rich mathematical-nature connection leads to deep satisfaction. for example, for course requirements, the connection between mathematics and construction sciences can be achieved in practical exercises on the topic "derivative and its applications", or the role of mathematics in agriculture and farms can be demonstrated in the activity "calculation of the surfaces of flat figures". methods of solving problems, a matter of practical orientation, practical issues, teaching vocational subjects in relation, solving problems of practical content. introduction nowadays, the problem of solving many issues in rural areas is horizontal. these issues are social, ecological, demographic, economic, cultural and educational. in order to solve these issues, there is a need for highly qualified personnel in all fields in the villages. it is impossible to be a good specialist without fundamental mathematical knowledge. it is known from experience that conducting practical training with a rich mathematical-nature connection leads to deep satisfaction. for example, for course requirements, the connection between mathematics and construction sciences can be achieved in practical exercises on the topic "derivative and its applications", or the role of mathematics in agriculture and farms can be demonstrated in the activity "calculation of the surfaces of flat figures". humanity throughout its life has been and continues to implement scientific and practical approaches to the spiritual and technical development of society with the harmony of nature. every country requires the involvement of new technologies in production for its economic and social development. for the economic stability and prosperity of the state, the development of middle-level production small and medium-sized business is an important step. at present, the role and importance of natural sciences, including mathematics, taught there for the students of secondary education in technical schools to become skilled professionals or skilled professionals in the future, is incomparable. it is very important to examine the theoretical knowledge of mathematics with practical knowledge in technical schools. in fact, modern scientific and technical development will not become a reality if the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 34 www.americanjournal.org creation of high production technologies is not evaluated from the point of view of mathematics. no one doubts the practical application of mathematics, the implementation of its instructions through electronic calculators. in the courses of technical schools, mathematics is closely connected with practice, and its quality education provides students with the ability to solve natural technical problems in their daily activities, and to improve their professional skills in the future. the deepening of mutual relations between sciences leads to the creation of new sources of scientific research for mathematics in a broad sense, and it is necessary that the created problems are first evaluated theoretically and then verified practically. currently, there is no clear and coherent general attempt to approach the "practical problem". in modern applied mathematics, it is necessary to create a mathematical model of problems, to create an algorithm for it, and to program it. it is known from experience that college students show their activity in mathematics practical classes and solve example problems with great interest. students seek to connect their interests with mathematical theories through practice. for practical issues, the following requirements should be set: -mathematical and non-mathematical problems are clearly indicated and interrelated in practical problems; to clarify the necessary components that the issues should not leave the course program to achieve the goal; the presented issues are shown through simple, understandable and realistic requirements; methods of solving problems are carried out based on practical methods and rules; the practical part of the problems should not be purely mathematical instructions. it is known from experience that conducting practical training with a rich mathematical-nature connection leads to deep satisfaction. for example, for course requirements, the connection between mathematics and construction sciences can be achieved in practical exercises on the topic "production and its applications", or the role of mathematics in agriculture and farms can be demonstrated in the activity "calculation of the surfaces of flat figures". connecting mathematical knowledge with nature in each practical training is aimed at enriching it with problems in different areas of production. the practical exercises of teaching serve to enrich the deep spiritual and scientific outlook of the student, having the meaning of the stage. the involvement of modern computer technology deepens the practical direction of teaching. nowadays, the problem of solving many issues in rural areas is horizontal. these issues are social, ecological, demographic, economic, cultural and educational. in order to solve these issues, there is a need for highly qualified personnel in all fields in the villages. it is impossible to be a good specialist without fundamental mathematical knowledge. these are agronomists, zootechnicians, builders, mechanics... as a result of the division of land plots, new forms of management appeared. these are farms and households in private estates. private entrepreneurship is developing in the villages. in addition, there is a great need for managers to distribute agricultural products in villages. herdsman issue 1. cows, sheep and goats are raised on the farm. in total, there are 3400 goods. sheep and goats make up 9/17 of all animals, goats make up 2/9 of the total number of sheep and goats. how many cows, sheep and goats are there on the farm? solving. 3400 ∙ 9/17 = 1800 (number of sheep and goats) american journal of business management, economics and banking volume 10 march, 2023 p a g e | 35 www.americanjournal.org 1800 ∙ 2/9 = 400 (number of goats) 1800 – 400 = 1400 (number of sheep) 3400 – 1800 = 1600 (number of cows) answer. the farm has 400 goats, 1400 sheep, and 1600 cows. agronomist issue 2. they planted a new variety of wheat on an area of 1260 ha and harvested 28 ts per hectare. from the previous type of wheat, 18 tons of wheat was harvested per hectare. how much was harvested in relation to the entire area? solving. 28 – 18 = 10 (s) 1260 10 = 12600 (s) = 1260 (t) answer. 1260 tons. farmer issue 3. college students participated in potato picking for 4 days. on the first day they harvested 230 kg more potatoes than on the second day, on the second day 150 kg more than on the third day, and on the third day 259 kg less than on the fourth day. if the students picked 650 kg of potatoes on the first day, how many potatoes did they pick in 4 days? solving. 1 day – 650 (kg) 2 days – 650 230=420 (kg) 3 days – 650 -150=500 (kg) 650+420+500+759=2329 (kg) 4 days – 500+259=759 (kg). answer. 2329 kg. conclusion there is an opportunity to connect each topic of the educational material studied in mathematics with the types and types of problems of practical content related to this topic, and it is necessary and necessary to implement it. the most effective forms of vocational orientation of mathematics education, in our opinion, are: regular use of career-oriented problems and tasks of practical content in mathematics classes; explanation of the origin and essence of mathematical concepts and laws in practical examples; use of problems and materials of practical content known to students to strengthen the studied mathematical concepts; use of slides (tables, diagrams, graphs, various models, layouts, tools, reference books and their electronic samples) showing the connection of these subjects in mathematics lessons and related professional sciences teaching; carrying out practical work related to students' professional activities in places; organization of lectures and discussions about the use of mathematics in production; to solve problems of practical content in mathematics circles. in the selection and compilation of textual problems, the numerical values of the problems should be based on the measurements and observations made in the field. that is, such values must be related to the real situation. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 36 www.americanjournal.org knowledge of straight lines, planes, existence of spatial figures, straight line, distance between two points, etc. is the minimum scope of basic mathematical knowledge for everyone. the main task of mathematics is to achieve the correct formation of definitions, theorems, laws, formulas and their application in the minds of students and help in learning the laws of nature and society. a mathematics curriculum for technical schools should be free from demanding rigorous proofs for the propositions that are difficult for most students to understand. when describing the properties of mathematical concepts, it is necessary to pay attention to the properties of higher practical importance; it is necessary to enrich new knowledge with ways of practical application of the learned material. for example, the function and its properties in the field of construction, mechanical engineering and other fields; it should be noted that the relationship between straight lines and planes is used in architecture, mechanical engineering, pipe laying, etc. at every step, it is desirable to pay attention to the visuality and convenience of education, to be free of questions and issues that are difficult for the majority of students to understand, despite being attractive. academician a.a.samarsky wrote, "mathematics should be studied not as a set of rules and formulas, but as a philosophy, a specialist's way of thinking, as his work tool." we believe that mathematics textbooks and study guides should have teaching materials that reflect: general mathematical training; consistency of mathematical knowledge with production education; professional orientation; determining students' interest in labor education the sufficiency of the special issues that give. relationships between students' mathematical and professional preparation based on the following requirements: the system of concepts of mathematical science and cognitive activity methods, with production training or with certain occupational groups to be connected; the formation of a scientifically based practical imagination of students about the results of work in the fields of science and production, their interrelationship in the relevant profession; to the interaction of mathematical and professional training. these requirements are related to the technical content of mathematical education, teaching and life; by strengthening the connection between theory and practice; taking into account the chosen profession, in the means, form and content of teaching, mathematical and vocational education with the implementation of internal relations of science and interdisciplinary relations; is carried out by studying the guidelines of the chosen profession. list of references 1. khodiev b., golish l. methods and means of organizing independent educational activities. tashkent, 2007. 2. pogorelov a. geometry, 10th grade. teacher, 2004. 3. yoldoshev j.g., usmanov s.a. fundamentals of pedagogical technology. t.: "teacher", 2004. 4. golish l.v., faizullaeva d.m. design and planning of pedagogical technologies. study guide. tashkent, 2011. 5. melikulov a., kurbanov p. mathematics. 1-2 – part. teacher, 2003. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 37 www.americanjournal.org 6. abduhamedov a.a., nasimov n.a., nosirov u.m., khusanov j.h. fundamentals of algebra and mathematical analysis. tashkent, "teacher", 2001. 7. vafoev r.h., khusanov sh.kh. fundamentals of algebra and analysis. tashkent, 2001. 8. avliyokulov n. modern teaching technologies. tashkent, 2001. 9. ziyomuhammedov b., tojiev m. pedagogical technology-modern uzbek national model.-t.: "lider press", 2009.-104 pages. 10. http://www.ziyonet.uz/ru/library/libid/10400. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 11 www.americanjournal.org possibilities of using outsourcing in the provision of transport and logistics services kadyrov t.u. department of “methodological provision of education system” of the graduate school of business and entrepreneurship a b s t r a c t k e y w o r d s this article highlights the importance of outsourcing in the provision of transport and logistics services, and systematizes the group of factors that encourage such activity. a method of evaluating the economic effectiveness of outsourcing and criteria for evaluating the description of the outsourcing's execution capabilities are proposed transport-logistics services, outsourcing, insourcing, outsourcer, insourcer, economic efficiency. introduction relationships between business entities based on outsourcing have recently been more and more widely used in foreign practice. the term "outsourcing" is derived from the abbreviation of the words "outsider resource using" (resource use by external organizations), and contractual relations basically mean the use of resources (production or service activities) of other enterprises and organizations instead of their own resources. in recent years, all types of production and service activities are carried out by companies in all sectors of the economy in the framework of mutual cooperation based on outsourcing. as a result of the conducted research, outsourcing is defined as an integral part of the management strategy related to the provision of certain components or processes of the enterprise (insourcer) related to the production or provision of services to an external executive (outsourcer) on the basis of the rules of division of labor, stable business cooperation and mutual economic interest. can be given. at first glance, outsourcing appears as a form of mutual cooperation. however, it differs from ordinary organizational-economic relations in the following ways: guarantee of the scope and quality of the work assigned to him by the external executor; an open price policy between partners for the work performed or the services provided (the agreed price and the objectivity of making adjustments to it); mutual cooperation and long-term business relations; the authority to make corrections or changes to the technological processes of outsourcing as agreed by the outsourcer; joint responsibility of the outsourcer and contractor for product quality, delivery terms and other conditions, etc. also, in outsourcing, a complete list of participants and the type of work performed by them should be provided in the creation of the product or service provided to them according to the requirements of american journal of business management, economics and banking volume 11 april, 2023 p a g e | 12 www.americanjournal.org consumers. if these types of services require special licenses, this is one of the necessary conditions based on the established legislation. then, it is possible to achieve proportional provision of responsibility of the outsourcer and the customer in conflict situations arising from the performance of contractual obligations between the transport service provider and the consumer. in the logistics system, it is appropriate for the customer to use outsourcing in the following cases: if the company does not have enough experience and knowledge in logistics activities; if the quality of service and level of service increases; if a synergistic effect is achieved by ensuring service reliability; if outsourcing does not conflict with the company's strategic goals. of course, its synergistic efficiency is of primary importance for the customer when making a decision on outsourcing, which is manifested in the following cases: achieving economic efficiency by reducing costs per product unit due to the expansion of the scope of activity and the increase in the production volume; combined effect due to the complementarity of the customer's and outsourcer's resources; reduction of the customer's transaction costs due to outsourcing; increase in the possibility of applying innovative achievements in production. it is worth noting that the effectiveness of outsourcing is ensured for the enterprises performing it only if the order given by the customer is attractive and profitable. because they will be interested in both long-term cooperation and high profit in their work. otherwise, even if there is a demand for outsourcing among customers, it will be difficult to implement it in practice, or it may not be implemented at all. in our opinion, the main factors encouraging the use of outsourcing in the provision of transport and logistics services in the road transport system are as follows: 1. provision of transport and logistics services of various types of motor vehicles, trailers, semi-trailers, special trailers, refrigerators, loading and unloading mechanisms, technological equipment for maintenance and repair of vehicles, cargo handling equipment, storage warehouses and other technical is carried out by using technological means. this naturally requires attracting a large amount of capital and investments in order to have these technical means. in conditions of limited material and financial capabilities of transport operators, they outsource some types of transport-logistics operations in order to fully satisfy the needs and demands of customers. in this case, if the financing of the execution of these operations is carried out by an outsourcer, the costs are covered by the payment made by the consumer for the services provided, together with the added value. 2. quality of transport and logistics services. in some cases, even if transport operators have the technical and technological capabilities of providing transport-logistics services in the required volume, they cannot implement the quality level of some of their types at the level of competitors' or customers' requirements. this situation also encourages the outsourcing of some components of service provision. 3. in the full implementation of transport-logistics operations, it can be expensive for companies to keep highly qualified specialists, they can be attracted from time to time on the basis of outsourcing. for example, in evaluating or certifying the quality of transport and logistics services, conducting marketing research, solving complex technical and technological problems that rarely occur in the use of transport vehicles and technological equipment, forwarding special cargo, operations related to catering or other comfort during passenger transportation, etc. attract qualified specialists. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 13 www.americanjournal.org 4. transport-logistics services at motor transport enterprises, i.e. insourcing them when there is a reserve in production capacity, renting vehicles and technological equipment based on outsourcing in case of shortage, and other operations; 5. providing services to clients on the basis of an individual approach, to ensure that some of the services requested by them are performed together with the external executors offered by them, etc. based on the analysis of these factors, it is possible to systematize the advantages and disadvantages of outsourcing in the provision of transport and logistics services (table 1). based on the analysis of the forms and methods of outsourcing in the logistics system in international practice, the following forms of outsourcing can be widely used in the provision of road transport services: outsourcing of transport production components; outsourcing of transport functions (transportation, loading and unloading, warehouse service, storage, etc.). table 1 advantages and disadvantages of using outsourcing in transport-logistics services № the field of activity of the motor transport enterprise the advantage of using outsourcing disadvantage of using outsourcing 1. operation of vehicles 1. achieving high operational qualities; 2. maximum use of transport potential; 3. achieving production flexibility; 4. achieving high innovation. 1. lack of full control over production quality; 2. requires special experience; 3. increase in risks at the rate of production; 2. economic activity 1. decrease in capital expenditure; 2. cost reduction; 3. payment for technical and technological means only in the amount used; 4. increase in cash flows. 1. increase in the volume of economic relations; 2. increase in administrative activity 3. management activities 1. focusing on the main activity; 2. reduction of management personnel and assets; 3. high labor productivity and management efficiency. 1. disclosure of know-how; 2. decrease in relations with clients; 3. the dependence of management efficiency on the management system of partners. for customer companies, in order to provide transport-logistics services in the volume, quality and price required by customers, it is important to evaluate its economic efficiency when making a decision regarding the formation of an order to outsourcing and its implementation. based on this research task, we found it necessary to propose the simplest and most reliable method of its assessment that can be used by the general public. it can be expressed as (ia): ia=∑_(i=1)^n▒(c_i-c_ai-c_ti ) (1) here: c_i – costs of performance of type i-transport-logistics services by the ordering operator, soums; c_ai costs of outsourcing of i-transport-logistics services type, soums; c_ti transaction costs spent on the outsourcing of the type of i-transport-logistics services, soums. (1) in order for the expression to be meaningful, the following condition must be fulfilled: c_i≥(c_ai-c_ti) (2) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 14 www.americanjournal.org it should be noted that in practice, customers do not always set the main goal of obtaining economic benefits from outsourcing. to implement it: lack of material, financial and labor resources; limited innovation potential; -lack of experience in some jobs; -customers demand that certain operations be performed by the company they want; not being able to ensure the required quality of performance even from the cost of transport-logistics services; the need to strengthen the competitive position of the motor transport enterprise with low prices and high quality, and other circumstances may be more important. in this case, the synergistic effect of outsourcing is more important for the customer. therefore, when using outsourcing for customer transport operators, a comparative description of the extent to which the outsourcer fulfills the order also plays an important role (table 2). table 2 criteria for evaluating the description of the performance capabilities of the outsourcer № a descriptive sign of outsourcing evaluation criteria sample value of the grade, % (x=1÷100) the actual possibility of the outsourcer, (y=0÷1) 1 2 3 4 5 1. technical capabilities compliance of the contractor's field of activity and experience with the order 2. technological possibilities compliance of order fulfillment technologies and methods with regulatory requirements 3. production capacities possession of production capacity to perform the required volume of work 4. management options ability to manage and develop outsourcing 5. staff capacity sufficient composition and qualifications of the personnel executing the order 6. financial opportunities possession of financial resources to perform the required amount of work 7. patent and intellectual property rights preservation of intellectual property rights of the outsourcer in the execution of the order 8. innovative potential the level of innovation in order fulfillment 9. recommendations and reviews availability of positive reviews and recommendations from other customers total ʃ=100 ʃ=0÷9 in the integral assessment of the outsourcer’s performance capabilities, expert methods are used to calculate the weights of its individual indicators (9 in our example). in the expert assessment, sample indicators are calculated in percentages, the average value of their weights is calculated, and their sum is equal to 100. after determining the weight of the sample indicators, the capabilities of a selected outsourcer are evaluated from 0 to 1 points according to the specified indicators. if the indicator of the outsourcer american journal of business management, economics and banking volume 11 april, 2023 p a g e | 15 www.americanjournal.org according to any criterion fully matches the sample, it is evaluated with 1 point. it is appropriate to evaluate them in an expert manner. literature 1. dolbina s. a. algorithm management relationship with outsourcing //rossiyskoe predprinimatelstvo. 2010. no. 12 (2). s. 60-66. 2. kurbanov a. h., plotnikov v. a. outsourcing: history, methodology, practice. m.: infra-m, 2012. 112 p 3. kotlyarov i. d. outsorsing i inye formy mezhfirmennoy kooperatsii: analiz otlichiy // bukhuchet v stroitelnyx organizatsiyax. 2011. no. 1. s. 41-43. 2012. s. 39-43. 4. slyusareva e.v. outsourcing logisticheskikh functional enterprise //vestnik omskogo universiteta. series "economics". 2009. no. 2. s. 117–118. 5. khugaeva l.t. effektivenost outsorsinga na predpriyatii// terra esonomicus. 2011, volume 9, number 2, chapter 2. 6. sergeev v.i., kizim a.a., elyashevich p.a., global logistic system, pod. public ed. v.i., sergeeva, spb.: id "biznes-pressa", 2001.; 7. modern logistics, johnson james, wood donald, f. wardlaw, daniel, l. murphy jr., paul r., m.: izdatelsky dom "williams", 2005, str.556. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 79 www.americanjournal.org innovative technologies in the professional education system ў. д. хидиров олий таълим, фан ва инновациялар вазирлиги ҳузуридаги олий ва профессионал таълим муассасалари моддий–техник базасини мустаҳкамлаш маркази директори, п.ф.н. a b s t r a c t k e y w o r d s this article deals with innovative technologies in the vocational education system, "innovative educational technologies", the importance of increasing the intellectual potential of teachers of various specialties at retraining and advanced training courses for teachers of higher educational institutions, enriching their worldview, innovative educational technologies. education, innovation, professional, technology, higher education, pedagogy. introduction “инновацион таълим технологиялари” ўқув модулининг ўқитилаѐтганлиги педагог кадрларни замонавий инновацион таълим технологияларининг ташкилий, техник ва дидактик имкониятларидан хабардор бўлишлари учун шароит яратиб, касбий фаолиятда улардан самарали фойдаланиш борасидаги малакаларининг мустаҳкамланишини ҳам таъминлайди. айни вақтда “инновацион таълим технологиялар” ўқув модули олий таълим педагогларини қайта тайѐрлаш ва уларнинг малакасини ошириш курсларида тингловчилар томонидан ўзлаштирилаѐтган касбий билим, кўникма, малака ва компетентлик сифатларини янада ривожлантириш, кенг кўламли илмий-тадқиқотларни олиб бориш, кучли рақобат мавжуд бўлган меҳнат бозорида ўз ўринларини сақлаб қолишларига ѐрдам беради. ўқув модули доирасида тингловчилар инновацион таълим технологияларининг моҳияти, муҳим асослари билан танишади, 3 касбий фаолиятда педагогик технологияларни самарали, мақсадли қўллаш малакаларига эга бўлади, таълим жараѐнини оқилона лойиҳалаштиришга доир тажрибаларини янада бойитади. шунингдек, тингловчилар педагогик инновацияларни асослаш, яратиш ва амалиѐтга самарали тадбиқ этиш йўлларидан хабарор бўлади, инновацион характерга эга муаллифлик дастурларини ишлаб чиқиш малакаларини муваффақиятли ўзлаштиради. бу эса ўз навбатида ўқитиш жараѐнида талабаларнинг фаолликларини таъминлаш, таълим сифатини яхшилаш, самарадорликни оширишда муҳим аҳамият касб этади. педагогнинг инновацион фаолияти. замонавий таълимга хос муҳим жиҳатлардан бири – педагог фаолиятининг инновацион характер касб этишига эришиш саналади. ўз-ўзидан тизим сифатида янгилик киритириш муносабат ѐки жараѐннинг, биринчидан, ички мантиғини, иккинчидан, киритилаѐтган янгиликнинг муайян вақт оралиғида изчил ривожланиши ва атрофмуҳитга кўрсатадиган ўзаро таъсирини ифодалайди. в.а.сластенин инновацияни янгилик яратиш, кенг american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 80 www.americanjournal.org ѐйиш ва фойдаланишга қаратилган мақсадга мувофиқ, йўналтирилган жараѐни мажмуи деб билади. муаллифнинг фикрига кўра ҳар қандай инновация янги воситалар ѐрдамида ижтимоий субъектларнинг эҳтиѐжини қондириш ва интилишларини рағбатлантириш мақсадини кўзлайди. олий таълим муассасаларида инновацион жараѐнларни ташкил этишда ўзига хос ѐндошувлар кузатилаи. улар: 1. гностик-динамик ѐндошув (унга кўра педагоглар педагогик инновациялар, уларнинг турлари, яратилиши, амалиѐтга тадбиқ этилиши, хориж мамлакатларида яратилган илғор педагогик (таълимий) инновациялар ва уларни ўрганиш, маҳаллий шарт-шароитларни инобатга олган ҳолда амалиѐтда улардан фойдаланишга доир билим, кўникма, малакаларни изчил ўзлаштирадилар, ўз фаолиятларида педагогик инновацияларни фаол қўллаш борасидаги тажрибаларни ўзлаштирадилар). 2. индивидуал фаолиятли ѐндошув (бунда педагоглар ўзларининг индивиуал имкониятлари, қобилиятлари, тажрибаларига таянган ҳола амалиѐ фаолиятда педагогик инновацияларни қўллашда муайян изчилликка эришадилар). 3. кўп субъектли (диалогик) ѐндошув (мазкур ѐндошув педагогик жараѐнда инновацияларни ҳамкасбларнинг ўзаро, хусусан, кўп йиллик иш тажрибаси, касбий маҳорат ва тажрибага эга педагогларнинг фаолиятлари билан танишиш, уларнинг таълим инновацияларини самарали, мақсадли ва узлуксиз қўллашга доир тавсия ҳамда кўрсатмаларидан фойдаланишларини ифодалайди). 4. инсонпарварлик ѐндошуви (ушбу ѐндошув педагогик жараѐнда инновацияларни қўллашда таълим олувчиларнинг имкониятлари, хоҳиш-истаклари, қизиқишлари, билим, кўникма ва малакалари даражасини инобатга олиш мақсадга мувофиқлигини ѐритишга хизмат қилади). индивидуал-ижодий ѐндошув (унга кўра ҳар бир педагог фаолиятини ўрганилаѐтган мавзу, ўқув материалининг моҳияти, шунингдек, ўз имкониятлари, салоҳияти, маҳорати, иш тажрибасидан келиб чиққан ҳолда таълим ва тарбия жараѐнларини ижодий ишланмалар асосида ташкил этади). моҳиятига кўра инновацион фаолият илмий изланишлар, ишланмалар яратиш, тажриба-синов ишлари олиб бориш, фантехника ютуқларидан фойдаланиш асосида янги технологик жараѐн ѐки янги такомиллаштирилган маҳсулот яратишдан иборат. педагогнинг инновацион фаолияти қуйидагилар билан белгиланади: янгиликни қўллашга тайѐргарлиги; педагогик янгиликларни қабул қилиши; новаторлик даражаси; коммуникатив қобилиятнинг ривожланганлиги; ижодкорлиги педагогик инновацияларнинг даврий такрорланиши ва қайтарилиши қонунияти янгиликларнинг янги, янада қулай шароитларда қайта тикланишини ифодалайди. одатда педагогик инновацияларнинг амалиѐтга тадбиқ этилиши икки хил кечади: 1. педагогик инновацияларнинг амалиѐтга тадбиқи стихияли кечади, яъни, инновацион жараѐнда педагогик янгиликларга бўлган эҳтиѐж ҳисобга олинмайди, уларни амалиѐтга тадбиқ этишда мавжуд шарт-шароитлар, усул ва йўлларига онгли муносабат билдирилмайди. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 81 www.americanjournal.org 2. педагогик инновацияларнинг амалиѐтга тадбиқи стихияли кечади, яъни, педагогик янгиликлар инновацион жараѐнда онгли, мақсадга мувофиқ, илмий асосланган фаолият маҳсули сифатида амалиѐтга жорий этилади фойдаланилган адабиётлар рўйхати 1. абдуллаева х.а. машғулотларда фаол таълим усулларидан фойдаланиш. – фарғона: фарду, 2008. 2. авлиякулов н.х., мусаева н.н. модулли ўқитиш технологиялари. – т.: “fan va texnologiyalar” нашриѐти, 2007. – 97 б. 3. авлиякулов н.х., мусаева н.н. педагогик технологиялар. – т.: “fan va texnologiyalar” нашриѐти, 2008. – 164 б. 4. авлиякулов н.х., намозова н.ж. муаммоли ўқитиш технологиялари. – т.: “fan va texnologiyalar” нашриѐти, 2008. – 80 б. 5. авлиякулов н.х., романцев г.м., ткаченко е.в. теория и практика профиссональнопедагогического образования. том 1. – екатеренбург: изд-во гоувпо “ргппу”, 2007. – 304 с. 6. азизходжаева н.н. педагогик технологиялар ва педагогик маҳорат. –т.: молия, 2003. – 192 б. 7. альджанова и. ўқув портфолиоси – бўлажак ўқитувчиларда касбий компитентликни шакллантириш воситаси сифатида / педагогик таълим ж. – т.: 2012, 4-сон. – 46-б. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 50 www.americanjournal.org features of development of modern banking systems djumanov saitmurod alimbekovich phd., dotsent, tashkent financial institute khamrokhujaeva sitorabonu temur qizi student, tashkent financial institute yuldashev bilolkhon saminjon o‘g‘li student, tashkent financial institute a b s t r a c t k e y w o r d s this article examines the main trends in the development of the banking system of the countries of the world, various features of their functioning and modernization. here, both the general directions of transformation and its individual elements are noted. it can be seen that all of the above changes taking place in the banking system are aimed at automating and digitalizing the processes of banking activities and improving the quality of services provided to customers. banking system, competition, digitalization, securitization, cashless payments, digital banks, cryptocurrency introduction the banking system is an integral part of the processes of interaction between all subjects of the economy. the development of this sector leads to an increase in the rationality of resource allocation, the quality of corporate control, the stabilization of capital and the optimization of risk management. features of the development of the banking system at the present stage are largely determined by global economic and technological trends, as well as national characteristics. let us consider the characteristics of the modern banking system that are common to world practice: ⎯ the growth of competition. the modern banking system is characterized by a high degree of competition caused by the emergence of new forms of banking, such as internet banking, mobile applications, etc. in addition, the emergence of new technological solutions and financial instruments allows companies from other industries, such as technology and fintech companies, to compete with banks in providing financial services. ⎯ digitalization. in the context of digital transformation, the banking system is increasingly moving to an online format and process automation. one of the main goals of digitalization of banks is to improve the quality of customer service, reduce costs and increase the efficiency of banks. ⎯ geographic expansion. many banks are expanding their geography of activity by opening branches and representative offices in various regions of the world. this allows them to increase their customer base, diversify their portfolio of products and services, and increase their revenue. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 51 www.americanjournal.org main part in general, the techniques and methods of banking have become more complex, acquired new features, which, for example, consist in the introduction of new forms of financial transactions, banking services and products. their occurrence occurred naturally by combining the interests of the supply and demand sides and therefore found effective application in practice. despite this, this modernization of banking activity led to an increase in the role of banking risk management. a special role at this stage, as usoskin noted, was the regulation of the financial and banking sector and its processes by the state, manifested in the form of legislative reforms and innovations. [1, p.5969] many of them were aimed, firstly, at easing and abolishing restrictions in banking, including those related to the territorial distribution and expansion of the branch network, opening new institutions, improving the structure of the banking system, creating banking groups and holdings and so on. second, tariff restrictions on financial transactions, such as marginal rate levels, have been lifted. in addition, new financial instruments and types of banking services were introduced into practice by the type of checking account. increasing competition between financial institutions and liberalization of banking legislation have begun to lead to the transition of banks from large corporate clients to a wide audience of retail activities, transactions with which have a higher margin. it is this trend that is reflected in developing countries today, in the form of expanding channels of work with individuals. the global trend in the development of the banking sector, which is reflected to this day, is obviously computerization as a fundamental factor in the development of the entire banking, financial and economic system. it technologies have rapidly begun to be introduced into banking over the past decades, so today it is impossible to imagine this sector without systems for automating processes, collecting, storing and processing information about banking operations.[2] a new milestone in the development of this segment was the introduction of internet banking, which is improving every day. the advantages of developing these processes are not only a reduction in operating costs and an increase in the quality of customer service without increasing personnel costs, but the introduction of new forms and products of banking activities. another important aspect of the development of the banking system is the processes of financial globalization. [3] financial globalization includes the integration of financial markets and institutions across countries, the exchange of information and technology, and the transfer of capital and financial services across borders. one of the main effects of financial globalization is the ability for banks and other financial institutions to gain access to the international capital market. this allows banks to raise additional capital to develop their business plans and expand abroad. in turn, banks also provide financial services to clients abroad, which strengthens their international presence. financial globalization also facilitates the transfer of capital to regions with high returns. banks can invest their clients' funds in various assets such as stocks, bonds, real estate and other investment products available on international markets. this allows investors to earn high returns and reduce risks by spreading their investments across different countries and sectors. accelerating the improvement of forms and methods of business processes today lead to the transformation of all sectors of the economy within a few years. so, speaking about the current state of the banking system, it is necessary to pay attention not only to the reform of financial activity american journal of business management, economics and banking volume 11 april, 2023 p a g e | 52 www.americanjournal.org associated with the transition to a market economy at the initial stage of its formation, but also to take into account the processes of its modernization, noted over the past 5-10 years. foreign scientists identify a number of features of the modern banking system, in their opinion, most clearly different from its previous modification from the point of view of foreign practice in a rapidly developing world. thus, the following trends in the modern banking system in the western world are distinguished (which are gradually reflected in countries with developing economies) [4]: ⎯ securitization securitization is the process of converting a stream of income from assets such as mortgages or credit cards into securities that can then be sold to investors. thus, the bank receives additional capital, and investors can receive income from these securities. securitization is an important tool for banks and investors because it allows banks to raise additional capital and investors to earn returns from asset income streams. however, this process may also present certain risks associated with credit risk and securities market fluctuations. ⎯ development of shadow banks shadow banks are financial institutions that do not have an official banking license but provide similar services. shadow banks can be created both within the country and abroad, and their activities are often associated with international financial turnover. recently, there has been an accelerated development of shadow banks, which raises concerns about the stability of the financial system. the most important task of the traditional banking sector, i.e. money creation is not part of the services provided by shadow banking. shadow banking is about helping create money by providing funding to the traditional banking sector. ⎯ increase in the share of non-cash payments among the main advantages, one can note an increase in the speed and convenience of transactions, which can improve the quality of customer service and increase the efficiency of the bank. greater use of cashless payments can also reduce the costs of handling and storing cash. however, an increase in the volume of online transactions can also increase the risks associated with cybersecurity, as there is a possibility of hacker attacks on banking systems and customer computers. therefore, banks must pay great attention to protecting their systems and customer data. ⎯ digital banks and electronic money these are important trends in the modern banking system. recently, we have seen a rapid increase in the use of digital technologies in the banking sector, which is associated with an increase in the number of customers who prefer online banking and mobile applications. digital banks are banks that are based on digital technologies and offer fully digital services to their customers. these banks often do not have traditional branches and operate exclusively through online platforms. they offer a wide range of financial services including savings accounts, loans, investments and insurance. electronic money is digital money that is stored on electronic devices and used to make payments. they may be linked to bank accounts or exist as independent funds. electronic money provides customers with a convenient way to make payments without the need for cash or plastic cards. ⎯ rise in the popularity of cryptocurrencies cryptocurrency is a digital currency created on the basis of blockchain technology. it is used as a means of exchange, storage and accumulation of value on the internet. cryptocurrencies are not controlled by central banks or states, which ensures their decentralization and independence. but american journal of business management, economics and banking volume 11 april, 2023 p a g e | 53 www.americanjournal.org because of this, the attitude to this phenomenon in the banking system differs in all countries, for example, in the united states, cryptocurrency is legalized, in some countries of the european union, restrictions are applied to it, and some countries, like turkmenistan, have completely banned the use of this object. conclusion so, it should be noted that at present, in the context of rapidly changing economic realities, the development of the banking system is becoming an increasingly urgent problem. at the same time, it is important to take into account foreign experience and the latest trends in this area. an analysis of foreign experience shows that the successful development of the banking system is possible only if the state and the business community work together, establishing effective interaction. the key principles that should be the basis for such interaction are transparency and openness, as well as the maximum use of modern technologies and best practices. the modernization of the banking system stimulates the development of the economy and its growth based on internal stabilization and development systems, which is especially important in the context of global integration and instability. list of literature 1. usoskin v.m. modern commercial bank: management and operations. m.: ipts " vazar -ferro", 1994. 320 p. 2. levine , r. (2003). more on finance and growth: more finance, more growth ?. federal reserve bank of st. louis review , 85(4) pp.31-36 3. obstfeld , m. (2015). trilemmas and trade-offs : living with financial globalization . international finance , 18(2) pp.261-273 4. money , credit , and crises : understanding the modern banking system / nektarios michail / https://doi.org/10.1007/978-3-030-64384-3 palgrave macmillan cham , january 2021) pp.157-225 5. banking: a modern credit system: a study guide / o.i. lavrushin, o.n. afanasiev, s.l. kornienko; ed. honoured act . sciences of the russian federation, doctor of economics. sciences, prof. o.i. lavrushin. 3rd ed., add. m. : knorus, 2007. 264 p. isbn 5-85971-603-6 p.36-37 6. modern money and banking'; miller, roger leroy; van hoose , david d.; publishing house: m.: infra-m, 2000; isbn: 5-86225-819-1 -with. 881. p.745-746 7. nicholas danila the banking system and integration challenges . with. 73-93. – p.79 american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 123 www.americanjournal.org the impact of the audit profession risks in improving audit quality (an applied study in the general company for electric power production / southern region) ; amani emad jawad al radhi1 2alaa fareed abdulahad 1,2southern technical university, management technical college, basrah, iraq alaabotto@stu.edu.iq, amani.jawad.fa21@fgs.stu.edu.iq a b s t r a c t k e y w o r d s the implementation of control tests is an assisting factor for the auditor in determining the level of compliance with the elements included in the internal control system, which helps the auditor in the initial evaluation process and then reaching the final evaluation of the system to estimate the size of the essential tests to be designed by the auditor. among the most important results, there is an effect of reducing the auditing profession's risks in improving the audit's quality. effective and appropriate planning is important and contributes significantly to reducing audit risks in the auditors' report through its contribution to understanding the unit's scope of work and activity, identifying risk areas, and the extent to which unit continuity is possible. among the most important recommendations is to urge auditors in the public and private sectors to increase cooperation between them by holding workshops for academics specialized in the field of accounting and auditing optimally, improving the performance of the economic unit’s work as a whole, and creating and enhancing the added value of the economic unit and reducing its risks that affect the quality of auditing. furthermore, work to link the audit and internal control department with the company's board of directors, which provides a degree of organizational independence according to the international standards for auditing isa standard 1110, thus guarantees the objectivity of the opinion presented. audit risk; inevitability risk; control risk; discovery risk; audit quality. introduction: the audit profession derives its strength by expressing truthfully and fairly in reporting appropriate and very honest financial disclosures in representations of disclosures to provide users with high-quality information, on which many economic decisions depend greatly; also, the auditing profession faces risks and technical opinion appears in the financial statements, which may expose many auditors to multiple risks, as any audit process is fraught with many risks, and these risks have become a fait american journal of business management, economics and banking volume 13 june, 2023 p a g e | 124 www.americanjournal.org accompli that threatens the results of the final auditor’s work and is reflected in the result of the submitted report, so it should identify them and the factors influencing them to estimate the degree of risk and identify the areas in which it rises, and take the estimated levels into account when planning and implementing the audit work, and take everything that would reduce its impact on the quality of the audit. therefore, the audit must be done with high quality, and there must be flexibility, and the laws allow the issuance of instructions restricting the origin of these laws. the first axis/research methodology first: the research problem despite the efforts made by the auditors that seek to improve the level of audit quality to obtain the satisfaction of all parties using the financial statements, there are complaints by the users of the financial statements represented in their dissatisfaction with the level of service provided by some auditing firms. the auditor is exposed to the risk of litigation for failing to detect misrepresentation in the financial statements or to indicate the company's failure to achieve continuity and its objectives. all that is new in the auditing profession contributes to improving auditing quality. the research problem can be identified in "the impact of auditing profession risks in improving auditing quality." second: the importance of research the main purpose of the research is concentrated on identifying the nature of the risks of the auditing profession by achieving the following objectives: 1) determining the positive and negative effects on audit quality in reducing the impact of audit risks in iraqi auditing firms. 2) expanding the scope of the auditor's focus from audit risks, referred to as a deviation in the financial statements, to professional risks that make the company fail to achieve its objectives. third: research objectives the main objective of the research can be identified as reducing the risks of the auditing profession and its impact on the quality of auditing, and the following objectives are included: 1) studying and analyzing the risks of the auditing profession and limiting them through the auditor carrying out analytical and detailed procedures in the auditing process. 2) identifying the most important recent trends in light of the practices and international standards, the variables of research, the risks of the auditing profession and the quality of auditing. fourth: the research hypothesis the research hypothesis can be defined as follows: "there is a significant effect of risks of the auditing profession in improving auditing quality." the research sample: the research sample was represented by (the general company for electric power production / southern region), as it approved a number of auditors' reports in the concerned company issued by the federal office of financial supervision for the two fiscal years 2015-2016. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 125 www.americanjournal.org the second axis: previous studies study (dahou, 2018) entitled: an audit based on assessing internal control risks and their role in improving the performance of the economic enterprise. the study aimed to know the reality of the application of auditing based on assessing the risks of internal control in algerian economic institutions through a field study on a sample of economic institutions in the state of mascara and to know the role that this method contributes to raising the efficiency and effectiveness of internal operations. the most important conclusion is that the internal audit function is integrated with the risk management system, as they have a reciprocal role. the internal audit contributes to improving the effectiveness of risk management processes, while the auditor uses the outputs of the risk management process within the framework of his planning and study of the organization. moreover, work to take appropriate measures, work on training internal auditors and develop their skills by the modern trends of internal auditing, especially within the framework of the internal audit mission according to the risk approach. a study (bunjaku, 2019) entitled: audit components: literature review on audit plan, risk and materiality and internal control. the study aimed to identify the main audit components, such as the audit plan, risks and materiality, and internal control, as each is important to any audit process. in addition, given the corporate dynamics in the modern globalized world, the latter components must be dealt with dynamically. the most important conclusion is that the latter components must be dealt with dynamically given the dynamics of companies in the modern globalized world, and in this way, allows the auditor to draw reasonable conclusions, which bases his opinion on the audit under the international standards on auditing. most important recommendations an effective audit should be conducted by adopting a risk-based approach to identify and assess specific risks of material misstatement about the entity's financial statements and address them with audit procedures designed to achieve sufficient, relevant and reliable audit evidence. a study (saeed and algerban, 2020) entitled: the quality work of internal auditing agencies. the study aimed to stand and identify weaknesses in internal auditing agencies' work and suggest necessary methods to improve the quality and efficiency of auditing. the most important recommendations are paying attention to important factors and emphasizing the adoption of mechanisms that affect the quality of work of internal auditing agencies. the study (sutisman et al., 2021) entitled: moderating effect of implementation risk-based auditing on audit quality. the study examined the effect of auditors' ability and independence on audit quality using risk-based auditing as a mediating variable in the south sulawesi provincial inspectorate. the most important conclusions are that auditors' ability and independence positively and significantly impact audit quality. risk-based auditing as a moderator of ability and freedom also positively affects audit quality. the most important recommendation is that the auditor's independence positively and significantly impacts the quality of audits carried out by risk-based audits. the better the independence of the auditor through a risk-based audit process, the better the quality of the audit. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 126 www.americanjournal.org the third axis: the theoretical framework for audit risks first: defining audit risks the american society of certified public accountants (alcpa) defines the auditing profession as the risk of the auditor expressing an inappropriate opinion or a negative opinion in the financial statements when these statements are materially distorted as audit risk is the risk that the auditor will conclude an unfavorable opinion about the financial statements due to the auditor obtaining incorrect conclusions during the audit process, it is possible to express an inappropriate opinion about those statements. (alawwad and al-mayali, 2020: 140) the researchers believe that audit risks are nothing but the auditor’s expression of a non-positive or misleading opinion due to errors or material or material distortion in the financial statements. these risks affect the auditor's opinion, as the auditor cannot completely reduce the audit risk, and therefore the auditor cannot obtain absolute assurance that the financial statements are free from any material errors because these errors can occur in any establishment, either because of the nature of the work the establishment or the weakness of the internal control system, and many reasons lead to these errors. the auditor cannot obtain absolute confirmation regarding the financial statements, but it is possible to obtain reasonable or limited confirmation. second: types of audit risks 1) inherent risks (ir). it measures the auditor’s assessment of the possibility of a material misstatement before considering the effectiveness of internal control. it relates these risks to the nature of work, its environment, and the nature of account balances or a group of transactions. , or those representing desirable or moving assets such as jewelry, or those particularly subject to change in light of consumer demand or technology that affects their value; all of these accounts have more inevitable risks than others (lakhdari and zain, 22: 2017). factors influencing the assessment of inherent risks: the auditor should evaluate the factors that lead to the inevitable risks to be able to evaluate these risks. therefore, there are a group of factors. many factors affect the inevitable risk (amirish, 2017: 61-63), which are as follows: • factors affecting the industry in which the unit operates • unusual pressures on management • management experience and knowledge of the changes taking place • the complexity of accounts and transactions • community structure adds to the above (al-awwad and al-mayali, 141:2020) that the auditor must evaluate the factors that lead to these risks, namely: • the nature of the work of the unit. • misstatements in previous years • the turnover rate of the audited entity • transactions and business that take place between the parent company and subsidiaries second: control risks (cr): what distinguishes the risk of control as an internal risk. thus, it is a measure of the efficiency and effectiveness of the internal control system, as this risk is a result of the work environment of the unit american journal of business management, economics and banking volume 13 june, 2023 p a g e | 127 www.americanjournal.org subject to audit. accordingly, the auditor cannot influence the degree of this risk but rather evaluates it to determine the required amount of audit procedures to reduce this risk to an acceptable level. then the auditor must know the control procedures to develop the audit plan (lakhdari 82: 2019). factors affecting the assessment of control risk: the control risk assessment is an assessment of the effectiveness of the accounting system and the internal control system in the unit sufficient to detect or prevent the occurrence of significant errors and misrepresentations through the auditor’s desire that the control risk percentage be less than 5% as part of an audit plan for the unit, provided that the study is for the system internal control and to develop initial estimates with the equivalent audit tests for lack of assurance by obtaining the following evidence (al-ansari, 2021: 54): 1the accounting system should be compatible with the internal control system to prevent or detect errors and material misstatements. 2the extent of the effectiveness and stability of the work of the internal control system during the audit period. 3checking the accounting system between the cash and expense accounts. 4the data intended for external use should be matched with the internal data. 5obtaining inquiries from individuals. 6elements related to asset protection and compliance with regulatory laws and rules. 7reliance on the evidence of previous audits. 8checking the accuracy of the accounting system outputs represented in the account balances based on the accuracy of the inputs and financial statements. third: detection risks (dr): louwers et al. see discovery risk as the possibility of the auditor's procedures failing to discover material errors, provided that any of them entered the accounting system the first time and were not prevented, detected, or corrected by the unit's internal control system. in contrast to deterministic and control risks, auditors are responsible for implementing evidence-gathering procedures that manage and substantiate detection risks. these audit procedures allow the auditors to detect material misstatements in the financial statements. in other words, unlike deterministic risk and control risk, auditors can influence the level of detection risk. what distinguishes this type of risk from the types mentioned above (inevitable censorship) is that it arises from the nature and quality of the auditing procedures and the extent of the auditor’s competence, i. core tests. factors affecting the estimation of detection risk: (nakhal, 14:2020) believes that the factors affecting the estimation of the risk of discovery are as follows: applying incorrect audit procedures executing audit procedures incorrectly misunderstanding of audit results the risk of discovery is calculated after selecting the value of the acceptable audit risk and estimating the value of the inevitable risks and the control risks; the auditor can also calculate the value of the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 128 www.americanjournal.org discovery risk that he seeks to reach (planned discovery risk), expressing an audit risk model that can be formulated in practical application: (arens et al., 2017: 269). as: stands for planned detection risk (pdr) stands for acceptable audit risk (aar) represents the “inherent risk” (ir). represents the “control risk” (cr). third: understanding the relationship between the various risks and the evidence to be collected: al-ansari, (61: 2021) explains that the audit risk model shows the close relationship between deterministic risks and control risks, as the risks of material misstatement reflect the combined effect of deterministic risks and control risks. separately, as with inevitable risks, the relationship between control risk and planned discovery risk is inverse, while the relationship between control risk and objective evidence is direct and direct. if the auditor concludes that internal control is effective, the planned discovery risk can be increased and reduced. evidence, the auditor can increase the risk of planned discovery when internal control is effective because effective internal control reduces the possibility of errors in the financial statements (arens et al., 2017: 272). the table below shows the relationship between the components of audit risk. identify (assess) audit risks. maximum high moderate low the acceptable level of detection risk to achieve audit risk is low. determine the inevitable risks. maximum very low low low low high very low low low moderate moderate low low moderate high low low moderate high (x) substantive validation tests may not be necessary for a particular assurance table (1) the relationship between the components of audit risk source: (zahouqi and zamaleh, 2019: 96) adapted by researcher it is clear from table (1) that there is an inverse relationship between the combined effect of the inevitable risk and the risk of control on the one hand and the risk of planned discovery on the other. control depends on the accuracy of examining and evaluating the internal control system and identifying its weaknesses; that is, it is a function of the efficiency of the internal control system, which requires the auditor to make the necessary effort. it is appropriate to evaluate these two types of risks and to have an appropriate basis for determining their value. as for determining the discovery risk that the auditor accepts when planning the audit, it depends on the level of effort exerted by the auditor to discover errors and on the result of his assessment of the inevitable errors and control risk. the auditor has to use his professional judgment to estimate audit risks and generalize procedures to confirm that risks have been mitigated to an acceptable minimum. when the auditor decides that the discovery risk american journal of business management, economics and banking volume 13 june, 2023 p a g e | 129 www.americanjournal.org related to financial statements' assertions of a significant account balance or a group of transactions cannot be reduced to an acceptable level, the auditor must express a qualified opinion or not express an opinion (boul habbal, 217: 2018). figure (1) below shows the relative importance of performance and risk to the planned evidence first: the definition of audit quality audit quality is generally defined as the quality of the financial statements audited and issued by the accounting firm. the lower the quality, the lower the value of the audited financial statements and the disclosure of those numbers is inaccurate in describing the results of operations and the financial position of the unit subject to audit (wiyautoro & usman, 2018: 419). as defined by the european organization for quality control (eoqc), quality is the total of the advantages and characteristics that affect the ability of a product or service to meet certain needs (laqweera, 2019: 113). on the other hand, audit quality, in its way, is defined as the accuracy of the information provided by the auditor to the beneficiary of this information to make more accurate estimates of the value of the unit subject to audit and the absence of financial statements from material errors. relying on the competence of the auditor and the courage he has to announce it in his report without taking into account the consequences of this matter (al-aboudi, 2021: 41), where the possibility of discovering errors and figure (1) the relationship between the relative importance of performance and risk in the planned audit evidence (arens et al, 2017: 283) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 130 www.americanjournal.org fraud is a matter of competence, while the possibility of revealing them depends on the independence and objectivity of the auditor (ghazali and thawadi, 2019: 607). second: the importance of auditing quality al-tayeb believes that the quality of the audit process is important because it is a fundamental pillar in decision-making by the entities or parties benefiting from the data contained in the financial statements. therefore, the quality of the decision taken depends largely on the quality of the audit process and its reflection on the quality of the information in the financial statements and the extent of their representation. for the real reality of the unit subject to scrutiny, the following paragraphs (al-tayeb, 2017: 70): 1. the possibility of discovering errors and irregularities in the financial statements: this element is important for professional organizations because the units subject to audit may face failure in business because quality auditors can detect errors and irregularities in the financial statements better than lowquality auditors (sunhaji and amin 77:2017). 2. auditors: the importance of auditors is as follows (al-tamimi, 2018: 56): (a) the interest of the auditors in the quality of the services they provide leads to the improvement of the auditing service, and then this is reflected in the revenues achieved by the auditing offices and the maintenance of their unity. (b) the auditors shall be held accountable and avoid professional penalties for failing to perform the tasks entrusted to them through their commitment to professional standards, laws, legislation, and professional codes of conduct. (c) increasing the competitiveness of audit offices by providing the best services of high quality, which increases their market share and customer satisfaction. 3. narrowing the expectations gap in auditing: the expectations gap indicates dissatisfaction with the work of the auditors about what is expected of them, and this gap arises when the auditor issues an opinion without reservation on the financial statements, and then it becomes clear that there are fundamental errors affecting the accounts, and the emergence of weakness in the control system there is a deficiency in the quality of professional performance, and narrowing the expectations gap requires strengthening the independence of the auditor and activating control over the quality of the implementation of the audit process (masoudi, 204: 2019). 4. reducing agency conflicts: (shipli et al. 2019: 2911): it is known that the greater the conflict of interests between the agent represented by the management and users of the financial statements and the audit quality reduces agency conflicts in two ways: first: by increasing the quality of financial reports and then providing investors and related parties with more reliable information to monitor agents' investment and operating decisions. second: by increasing the quality of disclosure, which increases the possibilities for investors to analyze and evaluate the performance of the unit subject to auditing to ensure that agents use resources efficiently (ramadan & akway, 9:2019). 5. contribute to supporting corporate governance: corporate governance, from an accounting perspective, is intended to provide the necessary ingredients in protecting investors' money, ensuring that they obtain the realized returns, and ensuring that their money cannot be used in the areas of unsafe investments (al-aboudi, 2021: 43). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 131 www.americanjournal.org third: metrics quality auditing: (monshed and yacoub, 110: 2020) defines that a large group of researchers look at the measures and factors that affect audit quality and that the use of these measures requires considering the cost and benefit, and there is little evidence on the validity of building these scales or descriptive accuracy. therefore, it is necessary to evaluate the ability of these measures to predict detailed and accurate allegations. the most widely used audit quality measures in previous studies are the characteristics of the auditing firm or office, including: • the size of the company and the audit office. • company reputation and audit office. • firm and office audit experience. • the unit retention period. • specialization of the company or audit office in the unit activity. fourth: factors affecting the quality audit between (al-qudah, 2018: 8) that auditing standards regulation no. (65) issued by the american institute of certified public accountants (aicpa) as well as the institute of internal auditors (iia)) identified factors for the quality of the auditing profession in the light of which the factors affecting the auditing process can be classified according to the following: first: the organizational factors represented in planning the audit process: defining the audit work procedures, determining the size of the audit work, and then determining the time required to complete the audit process and the auditor’s skill in determining the starting point of the audit work and how to finish the audit work. (osama et al., 43:2020). (1) ownership structure (2) quality of work performance: (3) the reputation of the audit office: (4) the size of the audit office: (5) management support for auditing: second: behavioral factors that must be available in the auditor: 1) efficiency of the auditor: (2) independence of the auditor: (3) honesty of the auditor: (4) objectivity: third: the personal factors that must be available in the auditor: he must have the practical experience and educational attainment that qualify him to practice the profession. auditing training. (osama et al., 43:2020). (1) eligibility of the auditor: (2) the integrity of the auditor: (3) ability of the auditor: (4) the auditor's due professional care: american journal of business management, economics and banking volume 13 june, 2023 p a g e | 132 www.americanjournal.org fourth: the basic factors of the auditing process or profession: such as the commitment to apply generally accepted principles, in particular the application of the principle of objectivity and adherence to professional auditing standards, how to prepare reports regarding the optimal use of available resources in the professional activity, how to rely on the internal control system, and the ability of the auditor to detect fraud and manipulation (judges, 2018:8). (1) reliance on internal auditing: (2) the auditor's turnover rate: (3) specialization and knowledge of the auditor: (4) audit fees: fifth: the main factors for determining the strength of audit quality the five fundamentals are necessary to determine the strength of audit quality that enhances investors' confidence in the regulatory authorities in expressing an opinion that reflects the reality of the financial statements, which are (the culture of the company subject to audit, the skills of the auditor, the reliability of audit reports, the effectiveness of audit processes, and factors outside the control of the auditor (alqatamin, & salleh, 2020:60), and as shown in figure (1), the following: the fifth axis: the applied side of the research in this axis, the most important observations, reservations, and clarifications contained in the reports of the auditors and auditors of the study sample, which were represented by the general company for electric power production in the southern region, were extrapolated, which were obtained from the company's employees in the financial control department and the internal control department. it will deal with each of the reports of the audit bureau federal finance that pertains to the company and the company's reports of the company for the two years (2015-2016). audit quality audited alkadeah company culture auditor skills reliability of audit reports effectiveness of audits factors outside the auditor's control figure 1: fundamentals of audit quality source (mutlag et al.2022:705) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 133 www.americanjournal.org first: extrapolation of the reports of the federal office of financial supervision, the audit department of the second region, with the number: b / 12824/11/15/14 on the date 19/safar/1442 ah corresponding to 6/10/2020 ad on the financial statements of the general directorate of electric power production in basra for the year ended on december 31, 2015. directorate activity: first: the directorate achieved a deficit of (2963) million dinars for its operational activities (two billion nine hundred and sixty-three million dinars), a decrease of (99%) from the deficit achieved in the previous year, amounting to (199028) million dinars (one hundred and ninety-nine billion and twenty-eight million dinars). the reason for the decrease in the deficit is due to the decrease in operating expenses, except for commodity requirements, compared to the increase in current revenues, as shown below: accounting book number account name year / 2015 thousand dinars year / 2014 thousand dinars percentage change % 31 salaries and wages 53228137 57829682 (8 ) 32 commodity supplies 254794473 214535639 19 33 service supplies 9911338 10314788 (4 ) 37 extinctions 65963494 155076767 (57 ) 384 taxes and fees 3761 466411 (99 ) total 383901203 438223287 (12 ) 41_45 revenue from current activity 380937813 239194827 59 we have the following on that: 1_ decrease in depreciations for the year / 2015 by the amount of (89,113,273) thousand dinars (eightynine billion, one hundred and thirteen million, two hundred and seventy-three thousand dinars), with a decrease rate of (57%) compared to the previous year due to the capitalization of stations (north amarah diesel, al-kahla ghaziyeh, bazarkan ghaziyeh) year / 2014, which led to an increase in extinction in year / 2014 compared to year / 2015 2_ the increase in the selling price of the electric power unit (megawatt-hour) produced in the directorate’s stations, amounting to (26,785) dinars (twenty-six thousand seven hundred and eightyfive dinars). per (megawatt-hour) in the year 2015 at a rate of (36%) over the selling price of the previous year, amounting to (19710) dinars (nineteen thousand seven hundred and ten dinars) per (mega-watt-hour) due to the decrease in current expenses, transfer and other expenses, and transfer revenues and the other as shown below: accounting book number account name year / 2015 thousand dinars year / 2014 thousand dinars percentage change % 31 __384 current expenses 383901203 438223287 (12 ) 38 __39 other expenses 5598029 9721538 (42 ) 48 __49 other revenue 8560323 208743994 (96 ) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 134 www.americanjournal.org this led to an increase in the selling price for the year / 2015 compared to the year / 2014, according to the equation approved by the ministry of electricity from the year / 2011 the audited entity's answer to _a_ first: 1 the capitalization of (diesel north amarah, al-kahla ghaziyeh, and bazarkan ghaziyeh) stations in 2014 led to an increase in depreciation in 2014 compared to 2015. 2the increase in the selling price due to the decrease in other revenues (48-49) for the year 2015 by an amount of (200 billion) over the year 2014, and this sorter was excluded from the expenses according to the formula adopted in determining the price. risks of inevitability: the directorate achieved a deficit in its operational activities the reason: the deficit is due to the decrease in operating expenses, except commodity requirements, compared to the increase in current revenues reducing risks to achieve quality: since the inevitable risk is evaluated based on the auditor's assessment of the special circumstances of the unit, this reduction takes place only during the planning stage and usually does not change unless there are new facts discovered during the audit process. the primary goal of analytical procedures is to diagnose errors. moreover, misrepresentations at all stages of the audit enable the auditor to predict the failure of the economic unit and reduce detailed tests. violations in the application of the federal bureau of financial supervision law no. (31) for the year / 2011 (amended): the directorate's failure to respond to our inquiries listed below directed to the office of the director general and other departments, contrary to article (2 _ fourth) of the law above, which states (it is considered a financial violation for this law to abstain or delay in responding to the reports and correspondences of the bureau, its objections and observations within the specified period): no. and the date secured (8) on 13.10.2021 the directorate's delay in capitalizing fixed assets purchased from the investment budget allocations (9) on 13.10.2021 the balance of the documentary credits account for the purchase of materials is still suspended from the year 2000 (10) on 13.10.2021 the directorate sent its letter no. (17948) on 18/11/2015 to obtain confirmations of its balances appearing in its financial records as of 12/31/2015 and did not receive an answer to the letter above (13) on 13.10.2021 there is an increase of (8,649,360) megawatts/hour between the amount of total product resulting from the process of collecting the production of the general directorate of electric power production in basra with the production of barges shown in the table of quantities of energy produced and sold during the year 2015 and the correct total. (16) on 13.10.2021 within the balance of the non-current activity debtors’ account, an amount of (96,677) thousand dinars (ninety-six million, six hundred and seventy-seven thousand dinars) suspended from the year 2009 until 31/12/2015 for the shares of the general directorates affiliated to the ministry of electricity from the hospitality wages of the minister of electricity and sports delegations (23) on 14.11.2021 tabulating the amount of (351,761) thousand dinars (three hundred and fifty-one million and seven hundred and sixty-one thousand dinars) as deductions for politically dismissed employees who are not eligible due to the issuance of decisions by the verification committee on account of accrued expenses h / 2663 instead of tabulating it on account of deductions from employees for the account of others h / 2671 and the amounts of the state employees' pension fund that were not paid to the public treasury, the national retirement authority until 12/31/2015 (24) on 14.11.2021 the salaries of the missing (muhammad ibrahim abdullah) for the year 2004 amounting to (3740) thousand dinars (three million seven hundred and forty thousand dinars) have not been settled. (25) on 14.11.2021 promote retirement transactions for employees of legal age without clearing their financial liability. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 135 www.americanjournal.org (29) on 14.11.2021 non-liquidation of the balance of the long-term allocations account h / 234 amounting to (3436678) thousand dinars (three billion four hundred thirty-six million six hundred eight hundred and seventy thousand dinars) as on 12/31/2015 (31) on 14.11.2021 rented cars continue to work for some employees who have held administrative positions after changing positions or moving from one department to another at their request. (40) on 14.11.2021 the directorate classified the amounts of legal fees collected from the drivers of mass transit lines at the expense of incidental revenues h / 492 from the account of deductions from non-affiliates for the account of third parties h / 2672 to pay them to the ministry of justice. (42) on 14.11.2021 there is a difference between the amounts shown in the cash flow statement and the balances of some accounts in the financial statements. we recommend that the bureau's inquiries be answered promptly in the future. the audited body's response to we would like to inform you of the change of all the staff in the control department, and the federal financial supervision bureau is now answering regularly. discovery risks: it is considered a financial violation for this law to refrain from or delay in responding to the bureau’s reports, correspondences, objections and observations within the specified period. reducing risks to achieve quality: analytical procedures aim to reduce detection risks by increasing audit efficiency and effectiveness because they lead to discovering errors and material misstatements in the financial statements as the main objective of the analytical procedures lies in diagnosing the discovery of errors and misrepresentations at all stages of the audit, which enables the auditor to predict the failure of the economic unit and reduce the detailed tests. second: extrapolation of the reports of the federal office of financial supervision, the audit department of the second region, with the number: b / 11/45/21205/14 on the date 3 / rabi` al-akher / 1444 ah corresponding to 9/28/2022 ad on the financial statements of the general directorate of electric power production in basra for the year ended on december 31, 2016. directorate activity first: the directorate achieved in its operational activity a deficit of about (111087) million dinars (one hundred and eleven billion and eighty-seven million dinars) and a percentage increase of (3649%) over the deficit achieved in the previous year, amounting to about (2963) million dinars (five billion three hundred and sixty million dinars). ) the continued deficit is due to the increase in some operating expenses compared to revenues, as shown below, and our inquiry no. (2) on 6/8/2022 was not answered until the date of preparing the report: accounting book number account name the year 2016 million dinars the year 2015 million dinars percentage change % 31 salaries and wages 51343 53228 (4 ) 32 commodity supplies 335336 254795 32 33 service supplies 6372 9911 (36 ) 37 extinctions 66070 65963 384 taxes and fees 2 4 (50 ) total 459123 383901 20 4145 taxes and fees 348035 380938 (9 ) american journal of business management, economics and banking volume 13 june, 2023 p a g e | 136 www.americanjournal.org this height is focused on the following: (1) the increase in commodity supplies by the amount of (80542) million dinars (eighty billion five hundred and forty-two million dinars), the increase concentrated in my account (raw materials and raw materials) to increase operating fuel expenses for the operation of most of the generating units and the directorate’s response to our inquiry no. (2) on 6/8/ 2022 due to (the increase in the production of electric energy for the year 2016, which amounted to (16,992,521) gigawatts per hour over the production of the year 2015, which amounted to (11,606925) megawatts per hour. (the decrease in the sale price of the electric power unit (megawatt/hour) produced in the directorate’s stations amounting to (17866) dinars (seventeen thousand eight hundred and sixty-six dinars) per (megawatt/hour) in the year 2016 by (100%) from the selling price for the year the previous amount is (26785) dinars (twenty-six thousand dinars, seven hundred and eighty-five dinars) for (megawatt the regulated entity’s response to: first: 1the increase in commodity requirements and the increase in spent fuel is the result of the increase in exported energy, which increased from (11606925) (m.w h) for the year 2016. 2the decrease in the selling price as a result of receiving grants from the ministry of finance for salaries, the payment of (64 billion) to the ministry of oil for spent fuel according to the ministry’s letter no. (3227) on 16/1/2017. control risks: the directorate achieved a deficit in its operational activity/ hour) and the directorate answered our inquiry no. (2) on 6/8/2022 due to (receiving grants from the ministry of finance. reducing risks to achieve quality: the sai must ensure that the entire audit team has the necessary professional competence to perform the audit mission. the sai needs to appoint staff with appropriate qualifications, develop and train staff, prepare manuals and other written instructions and instructions related to conducting audit missions, allocate adequate and appropriate resources. the sai must also arrange for auditors to maintain their professional competence through continuing professional development. loans 1the balance of the long-term loans received account amounting to (332563) million dinars (three hundred and thirty-two billion five hundred and sixty-three million dinars) as of 12/31/2016 still exceeded the balance of the paid-up capital account amounting to (629) million dinars (six hundred and twenty-nine million dinars) on the same date at a rate of (52772%), contrary to the provisions of article (17) of the public companies law no. (22) for the year / 1997 (amended), which stipulates (for the company for borrowing or obtaining funds to finance its activities from financial institutions and public companies under contracts and conditions an agreement on it not exceeding (50%) of its paid-up capital) and our inquiry no. (22) on 9/6/2022 was not answered until the date of preparing the report. which requires an increase in the paid-up capital and the liquidation of the loan balance in implementation of the provisions of the article mentioned above. the response of the audited entity to: 1we inform you that the amount of the loans, according to the analyzes, was directed by the ministry to load them into the account of the loans, and they were not received according to the signature of the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 137 www.americanjournal.org loans from the donors, and they will be recorded in records after informing us by the ministry, for capital increase. risks of inevitability: the balance of the loan account exceeded the balance of the paid-up capital. reducing risks to achieve quality: good planning helps ensure that control efforts are allocated based on risks, that potential problems are identified and resolved promptly, and that control is properly organized and managed so that it is implemented economically and effectively. the nature and extent of planning activities vary according to the size of the subject matter. the sai should allocate sufficiently skilled resources that are available when needed at the various audit stages. if the specialized techniques, methods or skills are not available in the team or sai, external experts can be used to provide knowledge or perform specific work. when external expertise is required, the sai will have different ways of assessing whether the experts have the necessary independence, competence, capabilities, and objectivity. discussion: in light of the analyzed data and to reduce the audit risks in the auditor's report by increasing the confidence of the beneficiaries of the financial statements that they are free from the risks of discovering material misstatements that affect the fairness of presenting these data, as the use of different analytical and detailed procedures leads to the reduction of various risks which the financial data is exposed to and enhances the honesty and fairness of its presentation. in addition, the researchers also conclude that effective and appropriate planning is important and contributes significantly to reducing audit risks in the auditors' report through its contribution to understanding the unit's field of work and its activity, identifying areas of risk, and the extent of the possibility of unit continuity, as well as determining the initial volume of evidence to be collected, and its contribution to designing an audit program that suits each process, in addition to its role in reducing detailed tests and proper planning. based on the previous conclusions, the two researchers recommend the need to use analytical and detailed procedures by auditors when auditing the financial statements of the units subject to audit, as the research hypothesis was accepted, "there is a significant effect of the risks of the auditing profession in improving the audit quality," and this confirms the validity of the research hypothesis. references 1. al-ansari, s. f. (2021) analytical procedures and their impact on reducing audit risks in the auditor’s report, an applied study \ master of science thesis in accounting techniques \ southern technical university \ college of administrative technology. 2. osama, i., m. and hamza, moftah and jamal,. amoura (2020) requirements for improving the quality of auditing and activating control over it in auditing companies or offices according to the international standard 220 for auditing journal of advanced studies in finance and accounting 7151-2602/2018 issn volume: (3) issue: (2) pages 36-52. 3. boulahbal, farid (2018) the effect of modern auditing methods on the quality of the auditor’s report/case study of a group of companies, a dissertation submitted for obtaining a doctorate in management sciences management. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 138 www.americanjournal.org 4. al-tamimi, h. h. (2018). the effect of not adopting the mandatory rotation of the external auditor on audit quality and error detection a field study in iraqi auditing companies and offices / journal of al-rafidain university college of science, no. (43) pp. 50-80. 5. dahu, a. h. (2018). auditing is based on assessing the risks of internal control and its role in improving the performance of the economic institution. a study on a sample of economic institutions in the state of mascara. a thesis submitted for obtaining a ph.d. economic and commercial sciences and management sciences / department of management sciences. 6. zahouqi, n., and zamaleh, o. (2019). external auditor qualification systems in light of the electronic operation of accounting data / journal of accounting, auditing and finance, volume (1), issue (2), pages 42-52. 1. 7 . saeed, s., al-ghurban, f. s. (2020) the quality of the work of internal auditing agencies, college of administration and economics / al-mustansiriya university. 2. 8 . sanhaji, p., and amin, l. m. (2017) the effect of using information technology in improving the quality of external auditing) journal of economics of finance and business, martyr hama university lakhdar el wadi algeria, volume two, number two, pages 71-80. 3. 9 . al-tayeb, h. h. a. (2017). the role of external audit quality in reducing creative accounting methods in sudanese insurance companies studies journal of graduate studies, volume (30), issue (19), pp. 64-84. 4. 10. al-awwad, a., muhammad, a. w. and al-mayali, w. h. (2020) the impact of audit risks on the auditor’s assurance exploratory research in the federal office of financial supervision and a number of academics journal of administration and economics, volume nine, issue thirty-four, pages 136-157. 5. 11. amirish, e. (2017). the extent to which analytical procedures are used to control audit risks a comparative study between algeria and france ph.d. thesis / farhat abbas university setif / faculty of economic, commercial and management sciences to obtain a doctorate, specialization: finance, accounting and auditing. 6. 12. al-aboudi, m., muhammad, b. g.(2021) the extent of the use and contribution of electronic auditing in improving the quality of external auditing / master of science thesis in accounting technologies / southern technical university. 7. 13. ghazali, z., and dhouadi, m. (2019) the impact of the quality of external auditing on earnings management practices a study of a group of algerian companies / journal of economic sciences, management and commercial sciences, volume (12), issue (2), pages 601-618. 8. 14. qudah, d. laith, a. m. (2018) the impact of the audit approach based on business risks on the quality of internal auditing an applied study on jordanian commercial banks / journal of the faculty of commerce for scientific research faculty of commerce university of alexandria / no. 2 volume fifty-five pages 1-39. 9. 15. lakhdari, abd al-jalil and zain, younis (2017) introduction to audit risk analysis to raise the efficiency and quality of external auditing an applied study in the grain and dry legumes cooperative of el-wadi province / journal of economic and financial studies / university of martyr hama lakhdar el-wadi / algeria, issue ten, part one. 10. 16. lakhdari, a. jalil (2019). the impact of audit risks on the quality of external auditing in the algerian environment a study of a sample of accountants \ a thesis submitted to obtain a ph. department of commercial sciences. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 139 www.americanjournal.org 11. 17. lagouira, samir (2019) contribution of evidence standards to improving the quality of external auditing: a field study of the opinions of a sample of external auditors in eastern algeria. a phd thesis submitted to the faculty of economic, commercial and management sciences / university of batna-1 algeria. 12. 18. masoudi, omar (2019) the effectiveness of audit planning according to international standards in improving the quality of the auditor’s professional performance a field study of a sample of accredited institutions for auditing in algeria / ahmed deraya university adrar faculty of economic and commercial sciences and management sciences department of management sciences a dissertation that falls within the requirements for obtaining a ph.d. in management sciences, majoring in accounting management and auditing, audit branch. 13. 19. munshed, q. gl., and yaqoub, f. abdullah (2020) the effect of audit quality on earnings quality (applied research in a sample of private shareholding companies listed in the iraq stock exchange volume (51) issue (15) pages 107-122. 14. 20. nakhal, a. m. s. (2020) the impact of big data on auditing risks alexandria journal of accounting research / department of accounting and auditing, volume four, issue two, pages 233-277. 15. 22. arens, a. a., elder, r., j., beasley, mark s., hogan, chris e. (2017), auditing and assurance services an integrated approach, sixteenth edition. 16. 23. bunjaku, f. (2020) audit components: literature review on audit plan, risk and materiality and internal control issn 1857-9973 657.6.01 pp36-43. 17. 24. louwers , timothy j. & blay ,allen d. & sinason. david h. & strawser, jerry r. & thibodeau, jay c (2018.) “auditing & assurance services” seventh edition, 18. 25. ramadan m. m. akway ،i. d.)(2019) the role of audit quality in reducing agency costs and cost of equity capital: an empirical study on companies listed in the egyptian stock exchange alexandria journal of accounting research, vol. (3), no. (2), pp 45-1. 19. 26. al-qatamin, k. and z. salleh (2020 (audit quality: a literature overview and research synthesis. journal of business and management, vo. (22), no. (2) pp 56-66 . 20. 27. shipli,tawfiq, a. h., ibrahim saleh, j., & abdul rahman, n. g. (2019) " the effect of external audit quality on profit management.” opción, vol. (35), especial no. (20), pp 2899-2921. 21. 28. sutisman , e. & ermawati, y. & mariani, s. & kartim, s. & putra, a. moderating effect of implementation risk-based auditing on audit quality j. akuntansi/volume xxv, no. 02 december 2021: 276-293 doi: http://dx.doi.org/10.24912/ja.v25i2.809. 22. 29. wiyantoro, l. s., & usman, f. (2018) "audit tenure and quality to audit report lag in banking" european research studies journal, vol. (21), no. (3), pp, 417-428 . http://dx.doi.org/10.24912/ja.v25i2.809 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 115 www.americanjournal.org interbank competition for attracting idle funds of legal entities and individuals rufat bakhtiyorovich kurbanov, phd., associate professor of the department of “bank accounting and audit”, tashkent institute of finance inomjonov muslimjon qaxramon ugli master student of tashkent institute of finance a b s t r a c t k e y w o r d s the article describes measures taken by banks to attract funds from legal and natural persons, restrictions and privileges in providing deposits to the population, as well as the control of the activities of commercial banks in attracting deposits by the central bank, researches about laws and regulations will be covered. population savings, depositor, deposits, bank resources, deposit operations, commercial banks. introduction the economic reforms carried out in our republic are causing serious changes in all sectors of the economy and in the regulation of macroeconomic processes. this, in turn, assumes the implementation of monetary policy in accordance with the new conditions and its qualitative improvement, as well as the implementation of clearly defined measures in this direction, and provides an opportunity for this. after switching to market relations, it is important to develop and improve the provision of banking services to the population. decree of the president of the republic of uzbekistan of may 12, 2020 “strategy for reforming the banking system of the republic of uzbekistan for 2020 — 2025” pf-5992 was adopted. according to him, the issues of reforming the banking system of the republic of uzbekistan for 2020-2025, further stimulation of the attraction of free money to its deposits by residents and economic entities, orientation of funds to bank turnover, expansion of the system of non-cash settlements were outlined [1]. therefore, it is important to gain customer confidence in bank deposits and create all the facilities for them, as well as increase the type, quality and speed of services. for this, commercial banks are even more in need of the introduction of their modern services, the use of new technologies. an important role in the structure of banking resources is played by the deposit of the population. they are put into full sum or in installments and can be issued. the linkage relationship between the depositor and the bank with the receipt of funds is confirmed by the issuance of a savings book. banks accept a variety of targeted investments based on payment, term or demand, as well as funds that can be obtained. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 116 www.americanjournal.org material and method. banking resources can be divided into two large groups. these are the banks ' own funds and the funds involved [7]. the attracted resources are divided into two-these are the attracted deposits, other obligations and purchased resources. these resources are used to carry out the active operations of the bank, that is, the bank's resources are placed in different areas for the purpose of generating income. since the passive and active operations of a bank are closely related, the composition and character of the passives are in many ways reflected in the implementation of the active operations of banks. at the same time resources in turn are also affected by changes in the lending policy of banks. deposit transactions are transactions of banks on the basis of their agreements with depositors for the purpose of deposit involving and maintaining funds of legal entities and individuals for a certain period of time. [8] in cases where the depositor has not been able to come to the bank or he cannot independently fill out the necessary documents on deposit transactions, transactions on his deposit are carried out by a trustee. its authority must be based in accordance with current legislation. in the republic of uzbekistan, legal entities and individuals can be subjects of deposit transactions. deposits can be made in cash or non-cash form. the minimum amount of a deposit made by a legal entity or an individual is determined independently by each bank. in the table below, we will analyze the deposit transactions of commercial banks of the republic. table 1. balance of deposits in commercial banks (mlrd.so ' mda) [11] date all in national currency in foreign currency total of which: jami of which: physical persons legal persons physical persons legal persons 1 2 3 4 5 6 7 8 01.01.2022 y. 156 189,8 95 578,2 29 867,8 65 710,4 60 611,7 12 508,9 48 102,8 01.02.2022 y. 149 560,9 92 297,6 29 172,0 63 125,7 57 263,2 13 137,3 44 126,0 01.03.2022 y. 148 349,6 91 215,7 29 854,5 61 361,2 57 133,9 13 261,6 43 872,3 01.04.2022 y. 153 790,2 93 219,0 29 291,4 63 927,6 60 571,2 15 040,9 45 530,3 01.05.2022 y. 161 734,8 100 359,3 33 262,08 67 097,2 61 375,5 15 707,3 45 668,2 01.06.2022 y. 173 894,5 105 629,9 33 381,1 72 248,8 68 264,6 16 656,1 51 608,5 01.07.2022 y. 185 062,1 109 076,4 35 604,7 73 471,6 75 985,8 19 152,0 56 833,8 01.08.2022 y. 195 504,9 109 192,5 37 087,8 72 104,6 86 312,5 19 915,7 66 396,8 01.09.2022 y. 205 723,8 118 037,9 40 535,3 77 502,6 87 685,9 20 259,3 67 426,6 01.10.2022 y. 206 758,8 118 753,7 39 264,3 79 489,4 88 005,1 20 819,0 67 186,1 01.11.2022 y. 206 519,0 120 469,3 39 983,3 80 485,9 86 049,8 21 820,7 64 229,0 01.12.2022 y. 216 548,1 124 547,1 40 779,2 83 767,9 92 001,0 22 631,1 69 369,9 01.01.2023 y. 216 737,5 131 794,8 45 169,8 86 625,0 84 942,7 23 578,7 61 364,0 deposits attracted as part of the obligations of the banking system are 156 trillion as of january 1, 2022. sum (42% of total liabilities), of which 24% or 37 trln. where the sum corresponds to the contribution of the population deposits, this figure is 217 trillion as of january 1, 2023. sum (39% of total liabilities). in turn, in exchange for an increase in population confidence in the banking system, their deposits increased to 68.7 trillion soums at the end of 2022. this has caused the share of the population's deposits to reach 32% in total deposits. the increase in the volume of long-term deposits, especially in the national currency, is explained by the provision of macroeconomic stability in the country, in particular, the stable formation of american journal of business management, economics and banking volume 12 may, 2023 p a g e | 117 www.americanjournal.org the national exchange rate, a downward trend in the inflation rate, and the significant preservation of real profitability on deposits. in banking practice in general, the maximum amount of deposit attracted by the bank is not limited. all deposits are accepted in the style of current funds and are paid on this basis. if deposits come in tratta, checks, money orders, state treasury guarantees and other forms, they are accepted on the condition that they are charged, however, the amount is not considered included in this deposit until it comes to the bank's account. deposits can be accepted from individuals, and at the same time from young people who have reached the age of 14. underage youth who have made a deposit in their name, from 14 to 18 years old, independently dispose of their deposits. any qualified individual can make a deposit in the name of an immature person. any guardian and trustee can also open a deposit account in the name of the person entrusted to his guardianship. banks have limited opportunities to attract funds, and in all countries this process is regulated by the central bank. the attracted funds make up the bulk of the credit resources of commercial banks. on june 19 of this year, the proposals of the lower house of parliament prepared by the committee on budget and economic reform on the involvement of free funds of the population in the real economy were discussed with the participation of representatives of the factions of political parties.according to the parliamentary website, the issue of attracting free money to the economy of the population in order to develop the real sector of the economy, increase confidence in the financial and banking system and develop the capital market has become the center of attention of deputies. experts believe that in order to attract funds being converted in the”foreign economy“, they will be legalized, the announcement of a” capital amnesty " for the specified period will give a good result. this practice was adopted in the form of a law in russia, georgia, kazakhstan and other states as a “financial amnesty”. therefore, in the opinion of the deputies, it is also advisable for capital amnesty to be adopted by parliament in the form of law in uzbekistan. a document adopted in the form of a law will inspire more confidence in citizens and become an object for parliamentary control. today, increasing the confidence of the population in the banking system and offering attractive bank deposits are the main factors in attracting free money. according to mps, savings interest should be established by the market itself based on real inflation rates. it is also important to develop a system of protection of population deposits, and the response to international templates will increase the confidence of the population in the banking system. results. according to the publication of the central bank on the balance of payments, international investment status and foreign debt of the republic of uzbekistan, the balance of deposits for the last three years of legal entities and the population operating in the country today is 11.5 billion. us dollars. it is noted that this amount consists of remittances sent from abroad in the last three years, the main part of which may be circulating in the “khufiyona economy”, which is kept in the house of residents or today is mainly estimated to be more than 50% in share without official sale to banks. in addition, the participants discussed a committee proposal to introduce a system of compulsory declaration of citizens ' income in the republic. this system provides social support for the population, creates a system of fair taxation and helps to identify an informal economy. also, the process of mandatory declaration will help to fight corruption and the foreign economy while american journal of business management, economics and banking volume 12 may, 2023 p a g e | 118 www.americanjournal.org replenishing the state treasury, and the growth of the international social development rating of our country. conclusions and suggestions. in our opinion,in further perfecting interbank competition for attracting vacant funds of legal entities and individuals, it is advisable to do the following: it is necessary to further strengthen the linkage of deposit, credit and other operations to ensure the stability of the bank, as well as to diversify resources to reduce risks; deposit portfolio categorization (by customers) so as to conduct an individual direction of customers by type; in the context of the transition of monetary policy to the active stage, it is necessary to constantly conduct open market operations in ensuring the compatibility of liquidity in the banking system with target operating indicators. in addition, by launching a single electronic platform of the interbank money market, it is possible to summarize the data on the free money of commercial banks to a single platform and create an opportunity to track the dynamics of interest rates for market participants, which will serve to form interest rates based on market mechanisms. the correct appointment and distribution of powers of the bank's employees. that is, if in commercial banks the appointment of employees taking into account their prospects and the correct distribution of labor capacity and powers, this leads to the development of the bank. in a narrow sense, it is advisable to use knowledge and skills when developing a bank deposit policy, it is necessary to attract qualified personnel. in conclusion, we can say that in all countries based on a market economy, commercial banks occupy a leading place in the payment mechanism of their economy. the problem of the organization of banking resources is the first level for conducting banking activities in one go. bank resources are formed through passive transactions carried out by banks and are maintained in the passive part of the bank's balance sheet. term deposits provide the bank with a stable resource base compared to other types of deposits. from this it is also necessary to pay attention to the guarantee of deposits when viewing issues of resource stability. literature used 1. o’zbekiston respublikasi prezidentining 5992-sonli “2020 — 2025 yillarga mo’ljallangan o’zbekiston respublikasining bank tizimini isloh qilish strategiyasi to’g’risida”gi pffarmoni, 2020 yil 12 may 2. h.p.abulqosimov, o.ya.xamrayev “iqtisodiyotni davlat tomonidan tartibga solish” o‘quv qo‘llanma toshkent «iqtisod-moliya» 2014, 164-bet. 3. a.razzoqov, sh. toshmatov, n. o`rmonov, p. xoshimov, f. egamberdiyev iqtisodiy ta'limotlar tarixi (o’quv qo’llanma) toshkent – 2005 329-bet. 4. o‘zbekiston respublikasi prezidentining 2017 yil 7 fevraldagi pf-4947-sonli “o‘zbekiston respublikasini yanada rivojlantirish boʻyicha harakatlar strategiyasi to’g’risida”gi farmoni//o’zbekiston respublikasi qonun hujjatlari to’plami, 2017 yil, 6-son, 70-modda, qonun hujjatlari ma’lumotlari milliy bazasi, 31.07.2018 yil, 06\18\5483/1594-son. 5. murojaat (2017) o’zbekiston respublikasi prezidenti shavkat mirziyoyevning oliy majlisga murojaatnomasi, xalq so’zi gazetasining 23 dekabr soni 6. kurbanov, r. (2020). the practice of strengthening of resource base in private banks. international journal of economics, commerce and management, 8(3), 23485-0386. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 119 www.americanjournal.org 7. fatf (2020), guidance on digital identity, fatf, paris, www.fatfgafi.org/publications/documents/digital-identity-guidance.htm 8. kurbanov, r. b. (2017). the role of deposits in strengthening the resource base of commercial banks. экономика и бизнес: теория и практика, (4-2), 51-54. 9. https://uidai.gov.in/images/commdoc/valid_documents_list.pdf). 10. всемирный банк. 2017 г. «принципы идентификации в целях устойчивого развития: к эпохе цифровых технологий». вашингтон, округ колумбия: группа всемирного банка http://id4d.worldbank.org/principles. перечень подписавших организаций приводится на сайте. 11. увкб оон «руководство по управлению регистрацией и определением идентичности» https://www.unhcr.org/registrationguidancehapter5/registration/ 12. www.cbu.uzo‘zbekiston respublikasi marekaziy banki rasmiy sayti ma’lumotlari http://www.fatfgafi.org/publications/documents/digital-identity-guidance.htm https://uidai.gov.in/images/commdoc/valid_documents_list.pdf https://www.unhcr.org/registration-%20guidancehapter5/registration/ http://www.cbu.uz-/ american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 34 www.americanjournal.org the impact of banking activity indicators on the return on deposits, applied research a sample of iraqi commercial banks dr . lecturer rebin tayeb rashid(1) raid hassan ali(2) assistant lecturer. lecturer rebin.tayeb@gmail.com raidhassan2007@yahoo.com assist. prof .dr. waad hadi abd (3) waad1985@mu.edu.iq noble institute 2014, iraq(1)accounting department college of administration & economics, al-muthanna university, iraq(2,3) a b s t r a c t k e y w o r d s the study aims to demonstrate the effect of theoretical relationships between the variables of banking activity indicators, the investment indicator on deposits and the resource employment indicator, as independent variables with the return on deposits indicator as a dependent variable. financial analysis on the study sample (the national bank of iraq, the iraqi middle east investment bank, and the gulf commercial bank). and then find the statistical correlation and effect of the high rates of bank deposits and bank loans on bank liquidity by using the statistical analysis program (spss.26) to reach the most important results that proved the existence of a relationship of effects that occur in the dependent variable the rate of return on deposits as a result of the influence of the independent sub-variables , as there is a positive relationship between the deposit investment index and the return on deposits for the correlation value (0.906**) at a significant level (0.01), while there is an inverse relationship between the resource employment index and the return on deposits for a correlation value (-0.033) at a significant level (0.01), in addition to the presence of a significant direct effect on the return on deposits of commercial banks, the study sample, as a result of increasing the percentage of deposit investment index by one unit, which is a significant effect of (0.000) at a significant level of less than (5%) while there is an insignificant direct effect on the return on deposit investment index, resource employment index, rate of return on deposits. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 35 www.americanjournal.org deposits as a result of increasing the resource employment index by one unit and by (12%), which is more than (5%). introduction commercial banks are characterized by great importance in attracting funds from various funding sources and working to find investment fields. investment deposits are the main source on which commercial banks rely. several types of investment deposits fall under them, including savings deposits: which represent investment accounts with small amounts that contribute to the annual profits of the bank. commercial, the aim of which is to encourage small depositors to obtain a small percentage of the profits. (abbas, abd, & kareem, 2020). term deposits: they are monthly, quarterly, semi-annual or annual deposits that the bank presents to its customers who wish to participate in investing in commercial banks. it is not permissible to withdraw from these deposits during the deposit period agreed upon between the bank and the depositor. term deposits with notification: they are the same as the aforementioned term deposits, except that they differ from them in the mechanism of withdrawal from them, (burkhanov , 2020) as the owner of the deposit must notify the commercial bank in writing of his desire to withdraw from this deposit, commercial banks also play a major role in providing loans to customers and other financial institutions, and the inability of customers to repay loans exposes the bank to the risks of lack of liquidity at the bank, , (chowdhury & zaman, 2018) .which leads these banks to bankruptcy after withdrawing deposits from depositors. the purpose of maintaining this budget is to measure performance in banking activity and identify weaknesses and strengths in the performance of the bank's activities, and then provide the necessary information in order to take corrective measures that ensure the survival of the bank in the competitive market and then achieve revenues and profits, and this is done by calculating activity indicators. banking and finding the effect relationship between it and the returns, and this is what will be dealt with in the theoretical and practical side of the study, (sahyoun, & magnan , 2020). literature review first: indicators of banking activity: commercial banks grant loans and invest surplus deposits until they are required for repayment, as commercial banks seek to find feasible investment opportunities to employ their resources in return for obtaining benefits that cover their expenses, and what is more than that is considered a profit for the bank, (abd & kazem, 2022). taken by those banks in their perspective of the degree of risk associated for these banking financial investments, deposits constitute the largest percentage of the financing sources for the commercial bank, (arif & nauman , 2012). and achieving profits from the available resources (deposits) indicates the ability of the bank to employ the surplus or accumulated money with the customer to obtain returns. the financial return that results from it, as commercial banks employ a large part of their resources in this investment, (chowdhury & zaman, 2018). and it is one of the basic functions of any commercial bank, and it includes the process of granting loans for various long, short and medium terms, and these investments are in the form of advances, loans, discounted commercial papers, or through american journal of business management, economics and banking volume 12 may, 2023 p a g e | 36 www.americanjournal.org withdrawals overdraft, and in order to create a balance between the process of granting loans and investing in the size of bank financial deposits to avoid liquidity risks that could expose banks to financial failure or bankruptcy , (chioma, okoye, & chidume, 2021) a set of banking activity indicators are used, including: (galili, zviely, ronen, & mienis, 2007), (schieber,, 1998) *deposit investment index: the banking department is interested in this indicator, because it measures the extent of the department's ability to employ one of the important sources of financing for the bank, which are deposits of various types in order to exploit and invest them in achieving profits. the deposit investment index is calculated according to the following equation: (investments / deposits) * 100. (van & j, 2016) *resource employment index: this indicator focuses on the extent of the bank's ability to employ its resources. profits are a measure of the efficiency of management of all investments, whether they are long-term or short-term investments. the resource employment index is calculated according to the following equation (investments / (deposits + equity) * 100. (hasan, atshan, & abd, 2023). second: return on deposits: second: return on deposits: (rod): commercial banks are always looking for an increase in profitability from short investments and long-term investments, and the rise of this indicator indicates the efficiency of the investment and operational management policies or investment in ordinary stocks during a certain period, (burkhanov , 2020). as it shows the rate of return on deposits the extent to which bank deposits generate profits to enhance the bank's competitiveness. this rate also measures the share of each unit of deposits in the net profit due to the bank after paying taxes. therefore, banks seek to achieve a balance between risk and return from banking operations, in a way that ensures maximization of return and minimization of risk. return on deposits index: (rod) according to the following formula: net profit after tax/ rate of return on deposits * 100. (abd & kazem, 2022) the practical side of the study the practical side deals with a brief summary of the study sample (the national bank of iraq, the iraqi middle east investment bank, and the golf commercial bank) as well as analyzing the financial statements for the period from (2006-2020) (net profit after tax / deposits) * 100 and calculate the deposit investment index (investments/deposits) *100 resource employment index (investments / (deposits + equity) * 100 , and after completing the financial analysis, test the hypotheses of the study based on the following: * the first main hypothesis: there is a significant correlation between indicators of banking activity as an independent variable with the dependent variable return on deposits at a significant level (0.01) two sub-hypotheses are derived from it: 1there is a significant correlation between the investment index on deposits as an independent variable with the dependent variable return on deposits at a significant level (0.01). american journal of business management, economics and banking volume 12 may, 2023 p a g e | 37 www.americanjournal.org 2-there is a significant correlation between the resource employment index as an independent variable with the dependent variable return on deposits at a significant level (0.01). * the second main hypothesis (there is a significant impact relationship between indicators of banking activity as an independent variable with the dependent variable return on deposits at a lower significant level (0.05). 1there is a significant impact relationship between the investment index on deposits as an independent variable with the dependent variable return on deposits at a lower significant level (0.05). 2there is a significant impact relationship between the resource employment index as an independent variable with the dependent variable return on deposits at a lower significant level (0.05). second: measuring the rate of return on deposits with banking activity indicators (deposit investment index, resource employment index) for the national bank of iraq: table (1) national bank of iraq, amounts in millions ( iraqi dinars) resources employment index (investments / (deposits + equity) * 100 deposit investment index (investments / deposits) * 100 return on deposits (net profit after tax/deposits net profit after tax total deposit total investments total equity the years 52.5 52.5 -5.47 -742 13562 7122 26361 2006 20 20 7.26 1584 21816 4395 27945 2007 49 49 8.36 3135 37519 15319 31080 2008 48.9 48.9 1.45 586 40308 19732 51771 2009 22.3 22.3 2.21 1141 51706 11546 52913 2010 21.5 21.5 3.30 2495 75720 16335 105416 2011 1.25 1.25 9.96 15415 154837 1943 154660 2012 9.09 9.09 3.85 13874 360328 32785 168541 2013 4.09 4.09 2.06 6947 337379 13805 263429 2014 0.95 0.95 0.86 2295 267565 2542 260396 2015 0.99 0.99 14.51 23501 162071 1615 287838 2016 1.37 1.37 1.61 2965 184729 2548 285719 2017 14 14 -4.15 -7912 190731 27013 257849 2018 23.5 23.5 3.66 9164 250556 59092 256641 2019 17 17 4.75 19907 419234 72224 307483 2020 19 19 3.6 6290333 171200.5 19201.07 169202.8 average source: prepared by the researcher based on the reports of the iraq stock exchange the above table shows the rate of return on deposits by dividing (net profit after tax / total deposits) for the national bank of iraq, as the average rate of return on deposits for the national bank of iraq was (3.6), as well as the average deposit investment index and the resource employment index reached (19, 8.5). respectively. third: measuring the rate of return on deposits with banking activity indicators (deposit investment index, resource employment index) for the iraqi middle east investment bank. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 38 www.americanjournal.org table (2) measurement of the iraqi middle east investment bank amounts in millions ( iraqi dinars) resources employment index (investments / (deposits + equity) * 100 deposit investment index (investments / deposits) * 100 return on deposits (net profit after tax/deposits net profit after tax total deposit total investments total equity the years 35.8 41 2.15 5 ،154 239 ،348 98 ،557 35 ،782 2006 40.4 46.7 4.47 14 ،451 323 ،057 151 ،046 50 ،449 2007 37.9 43.5 3.24 13 ،952 431 ،100 187 ،597 63 ،840 2008 14.6 17 2.59 11 ،707 452 ،515 77 ،067 75 ،547 2009 1.6 1.8 1.86 8 ،627 463 ،327 8 ،702 84 ،098 2010 0.8 1 3.65 18 ،453 505 ،117 5 ،257 137 ،899 2011 5.4 7. 3.94 24 ،282 615 ،784 43 ،487 187 ،746 2012 2.5 3.4 3.78 20 ،875 551 ،856 19 ،065 ، 202 ،779 2013 4 7.5 1.01 3 ،605 358 ،117 26 ،858 307 ،074 2014 70 128 1.63 5 ،420 331 ،665 42 ،5739 276 ،967 2015 8 16.7 4.67 11 ،750 251 ،839 42 ،149 272 ،093 2016 1.7 3 -.18 -581 324 ،584 10 ،233 261 ،150 2017 5 8.5 -.53 -2 ،295 429 ،602 36 ،404 267 ،467 2018 6.7 13 .03 78 271 ،418 36 ،404 267 ،290 2019 7.2 14 -.79 -2 ،095 266 ،696 38 ،068 264 ،800 2020 16 23 2 8892 387735 79171.2 183665.4 average source: prepared by the researcher based on the reports of the iraq stock exchange . the above table shows the rate of return on deposits by dividing (net profit after tax / total deposits) for the iraqi middle east investment bank, as the average rate of return on deposits for the iraqi middle east investment bank was (2), as well as the average deposit investment index and the resource employment index reached two (23, 16) respectively. fourthly: measuring the rate of return on deposits with banking activity indicators (deposit investment index, resource employment index) for golf commercial bank. table (3) golf commercial bank amounts in millions ( iraqi dinars) resources employment index (investments / (deposits + equity) * 100 deposit investment index (investments / deposits) * 100 return on deposits (net profit after tax/deposits net profit after tax total deposit total investments total equity the years 22.9 33.2 4.52 2 ،441 54,007 17 ،965 24 ،157 2006 43.95 55.7 4.50 4 ،770 106,116 59 ،136 28 ،431 2007 62.8 78.3 9.12 15 ،111 165,752 129 ،904 41 ،050 2008 54.9 72.29 4.26 7 ،977 187,469 135 ،527 59 ،200 2009 43.4 57.9 3.24 6 ،161 190,009 110 ،162 63 ،548 2010 38.6 59.74 5.36 11 ،632 216,937 129 ،604 118 ،183 2011 4.37 6.8 11.83 30 ،856 260,779 17 ،944 149 ،087 2012 8.98 15.5 11.38 47 ،451 417,143 64 ،783 303 ،984 2013 9.72 17.11 7.94 36 ،140 455,212 77 ،925 345 ،974 2014 22.8 40.8 2.41 9 ،859 409,220 167 ،113 321 ،625 2015 18.8 32.8 1.37 5 ،870 427,200 140 ،195 317 ،733 2016 14.1 31.1 1.59 4 ،230 265,803 82 ،724 320 ،887 2017 12.17 28.6 254.06 591 ،789 232,934 66 ،626 314 ،472 2018 11.8 29.9 -1.95 -3 ،931 201,579 60 ،428 306 ،709 2019 12.4 33.68 .00 -1 180,767 60 ،893 307 ،172 2020 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 39 www.americanjournal.org 25 39.5 21 51357 251395.1 88061.93 201480.8 average source: prepared by the researcher based on the reports of the iraq stock exchange. the above table shows the rate of return on deposits by dividing (net profit after tax / total deposits) for golf commercial bank, as the average rate of return on deposits for golf commercial bank was (21), as well as the average deposit investment index and resource employment index, which reached (39.5, 25) respectively. fifth: testing the relationship between the independent study variables (deposit investment index, resource employment index) with the dependent variable return on deposits. table (4) matrix of correlation coefficients between the independent study variables (deposit investment index, resource employment index with the dependent variable return on deposits. index return on deposits deposit investment index resource employment index test effect coefficient β -.033 -.209 1 pearson correlation resource employment index .828 .169 sig. (2-tailed) 45 45 45 n .906** 1 -.209 pearson correlation deposit investment index .000 .169 sig. (2-tailed) 45 45 45 n 1 .906** -.033 pearson correlation return on deposits .000 .828 sig. (2-tailed) 45 45 45 n it is clear from the above table that: *the existence of a positive relationship with significant significance between the deposit investment index and the return on deposits, and this provides operational support for testing the impact hypotheses, as the value of the correlation reached the deposit investment index as an independent variable in the variable return on deposits as a dependent variable in commercial banks, the study sample (0.906**) at a significant level (0.01). * the existence of an inverse relationship between the resource employment index and the return on deposits, and this provides operational support for testing the impact hypotheses, as the value of the correlation was the deposit investment index as an independent variable in the return on deposits variable as a dependent variable in commercial banks, the study sample (-0.33) at a significant level (0.01). sixthly: testing the effect relationship between the independent study variables (deposit investment index, resource employment index) with the dependent variable return on deposits. table (6) effect relationship between the independent study variables (deposit investment index, resource employment index) with the dependent variable return on deposits. morale level sig. t t test test effect coefficient β independent variables 0.03 -3.153 -10.753 fixed limit 0.000 2.633 0.248 deposit investment index 0.12 15.197 0.349 resource employment index american journal of business management, economics and banking volume 12 may, 2023 p a g e | 40 www.americanjournal.org -3.153 0.000 morale level sig. f 0.846 r square is the coefficient of determination 115.625 test f it is clear to us through the above table: that the coefficient of the fixed limit amounted to (-10.753), so if the independent variable is equal to zero, i. the calculated t is (-3.153), and when compared to its tabular counterpart of (1.699), we find that it is greater than the tabular (t), with a degree of freedom of (29), and this was confirmed by the (sig) test assumed by the researcher with a percentage of (5%) and a confidence level of (95 %), as we notice the probability rate is less than (5%). in order to detail this, the researchers analyzed the impact of each dimension of the independent variable on the return on deposits. as for the independent variables, the results of the analysis of the deposit investment index had a direct effect on the return on deposits of the commercial banks, the study sample. when the ratio of the deposit investment index increases by one unit, it is accompanied by a change in the return on deposits by (0.248), which is a significant effect of (0.000) at a significant level of less than (5% ), and this was confirmed by the (sig) test, the probability ratio is less than (5%), and thus we accept the hypothesis that there is a significant effect relationship between the investment index on deposits as an independent variable with the dependent variable return on deposits at a lower significant level (0.05). while the results of the analysis of the resource employment index had a direct effect on the return on deposits, when the resource employment index increases by one unit, it leads to an increase in the return on deposits by (0.349), but this effect is not significant when compared to the level of significance (5%) that the researchers assumed, so its value was (0.12), which is more than (5%) thus, we reject the hypothesis that there is a significant effect relationship between the resource employment index as an independent variable with the dependent variable return on deposits at a lower significant level (0.05), and we accept the null hypothesis (null hypothesis). the coefficient of determination (r ^ 2) explained the value of (0.846) of the effects that occur in (return on deposits), and these effects are due to the effect of the independent variable (indicators of banking activity of banks in the study sample, while the other effects amounting to (0.154) are due to other variables not included in this form. the f test and the sig level of significance measure the significance of the model as a whole, as it is noted that the estimated model is significant at the level of significance of 5%. when comparing the calculated f with its tabular counterpart, we find it larger as its value reached (115.625), while the tabular f reached (2.55), while (the level of significance sig.f) for the model as a whole, it represents (0.00), which is less than (5%) assumed by the researcher. therefore, the hypothesis accepts the second main hypothesis that there is a significant effect relationship between indicators of banking activity as an independent variable with the dependent variable return on deposits at a lower significant level (0.05). conclusions: there is a positive relationship between the deposit investment index and the return on deposits for the correlation value (0.906**) at a significant level (0.01), while there is an inverse relationship between the resource employment index and the return on deposits for a correlation value (-0.033) at a significant level (0.01). in addition to the presence of a significant direct effect on the return on deposits american journal of business management, economics and banking volume 12 may, 2023 p a g e | 41 www.americanjournal.org of commercial banks, the study sample, as a result of increasing the percentage of deposit investment index by one unit, which is a significant effect of (0.000) at a significant level of less than (5%). while there is an insignificant direct effect on the return on deposits as a result of increasing the percentage of resource employment index by one unit and by (0.349), but this effect is not significant as its value was (0.12), which is more than (5%). recommendations: the need for commercial banks to pay attention to the strong relationship between banking activity indicators represented by the deposit investment index and the resource employment index, and their impact on the rate of return on deposits, as the banking investment indicators reflect the good condition of the bank, which indicates that this bank follows sound and appropriate policies and procedures compared to other banks. commercial competition. emphasis on banks to study the reasons for the decrease in the values of the indicators of the rate of return on deposits in the sample of the study in order to be able to know and treat the deviations that occurred and work to achieve the best returns. references: 1. abd, w. h., & kazem, d. a. (2022). the relationship between the balanced scorecard and the cobit-5 criterion in improving banking performance, an applied research in a sample of commercial banks listed in the iraqi stock exchange. world economics and finance bulletin, pp. 13, 82-91. 2. arif, a., & nauman , a. a. (2012). liquidity risk and performance of banking system.. journal of financial regulation and compliance, pp. 20(2), 182-195. 3. bashatweh, a. d., & ahmed, e. y. (2020). financial performance evaluation of the commercial banks in jordan: based on the camels framework. international journal of advanced science and technology, pp. 29(5), 985-994. 4. burkhanov , a. (2020). indicators to assess financial security of the banks. . архив научных исследований, p. 27. 5. chioma, a. v., okoye, n. e., & chidume, a. j. (2021). assessing the effect of capital adequacy risk and liquidity risk management on firm value of deposit money banks in nigeria. african journal of accounting and financial research, pp. , 4(1), 3. 6. chowdhury, m. m., & zaman, s. (2018). effect of liquidity risk on performance of islamic banks in bangladesh. . iosr journal of economics and finance,, pp. 9(4), 01-09. 7. galili, e., zviely, d., ronen, a., & mienis, h. k. (2007). beach deposits of mis 5e high sea stand as indicators for tectonic stability of the carmel coastal plain, israel.. quaternary science reviews,, pp. 26(19-21), 2544-2557. 8. hasan, m. g., atshan, a. a., & abd, w. h. (2023). the impact of the relationship between supervisors of commercial banks and the work of the external auditor, a study according to the international auditing standard (1004). . journal of corporate finance management and banking system (jcfmbs) issn:, pp. 2799-1059, 3(03), 14-28. 9. kazem, h. a. (2021). banking liquidation according to the iraqi banking law no.(94) of 2004 (comparative study). journal of misan comparative legal studies, , p. 1(5). american journal of business management, economics and banking volume 12 may, 2023 p a g e | 42 www.americanjournal.org 10. melecky, m., & podpiera, a. m. (2010). macroprudential stress-testing practices of central banks in central and south eastern europe: an overview and challenges ahead. world bank policy research working paper, (5434). 11. polizzi, s., & scannella, e. (2023). continuous auditing in public sector and central banks: a framework to tackle implementation challenges. journal of financial regulation and compliance, pp. 31(1), 40-59. 12. sahyoun, , n., & magnan , m. (2020). the association between voluntary disclosure in audit committee reports and banks’ earnings management. . managerial auditing journal, pp. 35(6), 795-817. 13. schieber,, j. (1998). . possible indicators of microbial mat deposits in shales and sandstones: examples from the mid-proterozoic belt supergroup, montana, usa.. sedimentary geology, pp. 120(1-4), 105-124. 14. van , d., & j, w. (2016). a macroprudential approach to address liquidity risk with the loan-todeposit ratio. . the european journal of finance, pp. 22(3), 237-253. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 89 www.americanjournal.org importance of early warning systems in identifying risk khudoyberdiyev javharbek master’s student of tashkent institute of finance, tashkent city, uzbekistan. e-mail: javharjavhar98@gmail.ru izbosarov boburjon phd, associate professor, tashkent institute of finance tashkent city, uzbekistan a b s t r a c t k e y w o r d s the article provides information on the importance of early warning systems for identifying risks in commercial banks of the republic of uzbekistan, as well as what early warning indicators can be used, types of risks, their classification, theoretical mechanisms for their assessment and minimization in the field of investment and business are presented. also, this article presents the opinions of foreign and domestic scientists about the risks. early warning system, early warning indicator, risk, credit risk, risk management strategy. introduction an early warning system is a system designed to identify and warn people before a potential hazard or disaster occurs. these systems use various technologies and methods to monitor and analyze data related to potential risks such as natural disasters, industrial accidents or terrorist attacks. early warning systems can provide critical information to emergency responders, government officials, and the public, enabling them to take appropriate actions to mitigate or prevent the effects of a disaster. examples of early warning systems include tsunami warning systems, earthquake early warning systems, and severe weather warning systems. an early warning system in banks is a risk management tool that helps identify potential credit risks and borrowers financial difficulties at an early stage. these systems use a variety of data sources, such as financial statements, credit reports, and market data, to analyze borrowers financial health and identify signs of financial distress. early warning systems in banks typically use quantitative models to assess the risk of default. the models use various financial indicators, such as debt-to-equity ratio, liquidity ratio and profitability ratio, to assess the financial condition of borrowers. the models also take into account other factors such as industry trends, economic conditions and borrower behavior to provide a comprehensive risk assessment. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 90 www.americanjournal.org 2. literature review risk management can be understood as a set of actions aimed at determining the rational combination of risk and profit [1]. martina merkova, josef drabek expressed the following thoughts about risk: “risk is an inevitable part of any business, so it is very important to analyze it, but at the same time, the paradox is that it is a part of the project that cannot be evaluated until the end [2]”. risk is understood as a potential, numerically measured probability of loss. the risk of an investment project means the degree of risk of successful implementation of the project. currently, a wide range of methods and approaches are used to analyze the risk of investment projects [3]. the approach of the famous foreign scientist p.s. rose is the most constructive and is based on the assumption that the essence of asset and liability management in banks is the formation of a strategy and the implementation of activities that bring the bank’s balance sheet structure in line with its strategic programs. in his opinion, “... the main goal of asset and liability management is to maximize or at least stabilize the bank’s margin (the difference between interest income and interest costs) with an acceptable level of risk [4]”. the analysis of this problem revealed the lack of comprehensive studies on the issue of capitalization of commercial banks in uzbekistan. there are no clearly developed and used in practice measures on this topic. the very concept of capitalization is still not associated with the market interpretation of this term in relation to domestic credit institutions. until now, both in the scientific community and the banking community, capitalization is understood only as an increase in the bank’s own capital. for example, peter s. rose notes that “we often use the term capitalization, meaning by this own funds or equity capital of banks and its sufficiency to cover risks [5]”. the research of lg batrakova, the nature of interest rate risk in the implementation of deposit policy, assessment, management and the process of establishing a system of measures for insurance are studied [6]. in particular, raymond barr, a foreign economist, describes the stock market as follows. “the stock market, as a technical institution, performs the function of redistribution of free funds, assesses property rights, redistributes risks, redistributes information among participants in the business cycle. therefore, the stock market is a long-term idle capital market that collects and consolidates funds. these funds will be directed to long-term immobilization networks [7]”. thus, digital technologies have made it possible to move from a product-oriented approach to a customer-oriented one. the leaders in terms of banking innovation in the digital economy are germany, japan, the us, south korea and the uk. the reverse side of this process is the growth of internet fraud, which is one of the main modern banking risks [8]. 3. research methodology classical methods of finance in risk minimization are researched, and the article presents infographic classification and tabular data. it also deals with data synthesis analysis and theoretical foundations. 4. analysis and discussion of results the advantages of implementing early warning systems in banks are: improve data quality: early warning systems require high quality data to be effective. banks should improve their data management processes to support the implementation of an early warning system. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 91 www.americanjournal.org and this can benefit the bank in many other areas, for example, in the management process and customer analysis. improving the risk culture: the introduction of an early warning system will help to build a risk management culture in the bank. by providing a systematic approach to risk management, early warning systems help implement risk management practices throughout the organization, from the board to the front office staff. enhanced strategic planning: information provided by early warning systems helps banks identify emerging risks and trends for strategic planning and decision-making. by understanding the risks and opportunities in the market, banks can develop more effective strategies and outperform their competitors. increasing shareholder confidence: by implementing an early warning system, banks can demonstrate effective risk management and financial stability. this will help increase the trust of shareholders and increase the bank’s reputation in the market. reduced regulatory oversight: early warning systems help banks comply with regulatory requirements such as stress tests and capital adequacy assessments. improve portfolio diversification: early warning systems help banks identify potential concentration risks in their portfolios, such as over-lending to a particular industry or borrower. by identifying these risks early, banks can take steps to diversify their portfolios and reduce overall risks. increasing transparency: early warning systems can ensure transparency of the internal and external credit risk management process. this helps to build trust among shareholders such as investors and customers. advanced fraud detection: early warning systems help banks to detect fraudulent situations such as customer-wide loan fraud from different banks or theft of customer personal information. by identifying these risks early, banks can take steps to prevent fraud and minimize losses. additional benefits of early warning systems in banks include: improve decision-making: early warning systems provide banks with real-time information on the financial status of their borrowers, allowing them to make informed decisions about credit risk management and portfolio management. improve efficiency: by automating the risk assessment process, early warning systems help banks reduce the time and resources needed to manage credit risks. advanced risk management: early warning systems help banks identify emerging risks and take proactive measures to mitigate these risks, such as increasing provisions for potential losses or reducing lending to certain sectors. improve customer service: by identifying customers facing financial difficulties with early warning systems, the bank can help them provide tailored solutions and support, such as debt restructuring or financial advice. improve profitability: by reducing loan losses and improving portfolio management, early warning systems help banks improve their profitability and financial performance. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 92 www.americanjournal.org figure 1. early warning indicators in risk management include [9] early warning indicators are signals that can alert risk managers to potential problems in time, allowing them to take proactive steps to mitigate risks before they become major problems. some common early warning indicators in risk management include: ➢ financial ratios: financial ratios such as liability to equity ratio, liquidity ratio and profitability ratio can be used as early warning indicators of potential financial distress. by monitoring these ratios, risk managers can identify changes in the borrower’s financial condition and take appropriate action. ➢ credit ratings: credit ratings issued by credit rating agencies can be used as early warning indicators of potential credit risk. lowering the borrower's credit rating indicates a deterioration in the borrower’s creditworthiness and increases the risk of default. ➢ market trends: changes in market trends such as interest rates, commodity prices and exchange rates can be used as early warning indicators of potential risks. by monitoring market trends, risk managers can identify emerging risks and take appropriate action. ➢ operational metrics: operational metrics such as customer complaints, employee dissatisfaction, and productivity can be used as early warning indicators of potential operational risks. by monitoring these indicators, risk managers can identify emerging risks and take appropriate action. ➢ regulatory compliance: non-compliance with regulatory requirements can be used as an early warning indicator of potential legal and reputational risks. by monitoring compliance with regulatory and legal documents, risk managers can identify emerging risks and take appropriate measures. ➢ external events: external events such as natural disasters, political instability and economic downturns can be used as early warning indicators of potential risks. by monitoring external events, risk managers can identify emerging risks and take appropriate action. ➢ internal control: internal control weaknesses such as inadequate segregation of duties, lack of oversight and ineffective monitoring can be used as early warning indicators of potential operational american journal of business management, economics and banking volume 11 april, 2023 p a g e | 93 www.americanjournal.org and financial risks. by monitoring internal controls, risk managers can identify emerging risks and take appropriate action. ➢ customer behavior: changes in customer behavior such as late payments, increased disputes, and changes in cost structure can be used as early warning indicators of potential credit and operational risks. by monitoring customer behavior, risk managers can identify emerging risks and take appropriate action. ➢ changes in management: changes in management such as dissatisfaction, resignations and reorganizations can be used as early warning indicators of potential operational and strategic risks. by monitoring changes in management, risk managers can identify emerging risks and take appropriate action. ➢ technology disruptions: technology disruptions such as cyber-attacks, system failures and data breaches can be used as early warning indicators of potential operational and reputational risks. by monitoring technological disruptions, risk managers can identify emerging risks and take appropriate action. ➢ concentration risk: concentration risk arises when an institution allocates large amounts of loans to a single borrower, industry, or geographic region. concentration risk can be used as an early warning indicator of potential credit and market risks. by monitoring concentration risk, risk managers can identify emerging risks and take appropriate measures. ➢ regulatory violations: violations of internal policies, industry regulations, and legal requirements can be used as early warning indicators of potential legal and reputational risks. by monitoring regulatory compliance violations, risk managers can identify emerging risks and take appropriate action. ➢ stress testing: stress testing involves simulating extreme scenarios to assess the impact on an organization’s financial position. a stress test can be used as an early warning indicator of potential risks under adverse conditions. by conducting stress tests, risk managers can identify potential risks and take appropriate action. ➢ reputational risk: reputational risk occurs when an institution’s reputation is damaged due to negative publicity, customer complaints, or other factors. reputational risk can be used as an early warning indicator of potential legal and operational risks. by monitoring reputational risk, risk managers can identify emerging risks and take appropriate action. figure 2. early warning indicators for credit risk are [10] american journal of business management, economics and banking volume 11 april, 2023 p a g e | 94 www.americanjournal.org credit risk refers to the possibility of damage (loss) and (or) not being able to receive the planned income that may occur as a result of non-fulfillment (inadequate fulfillment) of the debtor’s obligations to the bank within the terms and (or) conditions specified in the contract or legal documents. early warning indicators are signals that a borrower may be at risk of defaulting on their loan. early warning indicators of credit risk include: 1. late payments: late or missed payments are a clear sign that a borrower is having trouble meeting their financial obligations. 2. high levels of debt: borrowers with high levels of debt relative to their income or assets may be at risk of default if they experience a financial crisis. 3. decline in credit score: a decline in a borrower’s credit score may indicate that they are having trouble managing their finances. 4. declining profitability: declining profitability for businesses means they are struggling to generate enough cash flow to meet their financial obligations. 5. economic conditions: changes in economic conditions, such as a recession or rising interest rates, can increase the risk of default for borrowers. 6. changes in management: for businesses, changes in management or key personnel can indicate that the company is experiencing financial difficulties. 7. negative cash flow: the fact that a borrower is spending more than their income can indicate that they are unable to meet their financial obligations. 8. legal or regulatory problems: legal or regulatory problems, such as lawsuits or fines, may indicate that the borrower is facing financial difficulties. 9. industry trends: changes in industry trends, such as increased competition or technological disruption, may increase the risk of default for borrowers in this industry. 10. value of collateral: for secured loans, a decrease in the value of collateral may increase the risk of default for the borrower. by monitoring these early warning indicators, lenders can take proactive steps to manage their credit risk and reduce the likelihood of losses. it should be noted that the above early warning indicators are not definitive signs of credit risk, but rather potential signals that require further investigation. lenders must use quantitative and qualitative analysis to assess credit risk and make informed lending decisions [11]. by identifying potential credit risks early, banks can take proactive measures to manage these risks, such as restructuring loans, increasing collateral requirements, or reducing credit limits. this helps prevent defaults and reduce losses for the bank. in addition, early warning systems help banks comply with regulatory requirements such as conducting stress tests and assessing capital adequacy [12]. the following strategies are used in risk management: • risk transfer: risk transfer involves transferring risk to another party, such as an insurance company or a third-party vendor. this helps to reduce the organization’s exposure to risk and limit possible losses. • risk avoidance: risk avoidance involves avoiding activities or investments that pose a significant risk to the organization. this helps to reduce the probability of losses and protect the financial stability of the institution. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 95 www.americanjournal.org • risk mitigation: risk mitigation involves taking steps to reduce the likelihood or impact of a risk. this may include exercising control, diversifying investments, or hedging against market fluctuations. • risk acceptance: risk acceptance involves preparing for possible losses. this includes setting aside reserves or creating contingency plans to mitigate the impact of a risk event. • risk monitoring: risk monitoring involves continuously monitoring risks in the organization and changing risk management strategies as needed. this helps ensure that the organization is prepared for potential risks and can quickly respond to emerging threats. 5. conclusions and suggestions in general, effective risk management requires a combination of strategies tailored to an organization’s unique risk profile and objectives. by implementing a comprehensive risk management program, financial institutions can protect their financial stability and ensure long-term success. in short, early warning indicators are an important component of effective risk management. by monitoring a number of indicators, risk managers can identify potential risks and take proactive measures to mitigate these risks before they become major problems. this helps ensure the long-term financial stability and success of the organization. literatura/reference: 1. mamatov b.s., khojamkulov d.yu., nurbekov o.sh. organization and financing of investments. textbook. tashkent institute of finance. t.: economy-finance, 2014. 608 p. (p. -544.) 2. martina merkova, josef drabek. use of risk analysis in investment measurement and management. 3. korshunova l.n., prodanova n.a. risk assessment and analysis. m.: phoenix, 2007.96 p. 4. rose p.s. banking management. provision of financial services: per. from english. – m.: delo ltd, 1995. 5. rose p. s. bank management. m: business. 2019. p. 238. 6. batrakova l.g. analysis of the interest rate policy of a commercial bank: textbook. – m.: logos, 2015. – 152 p. 7. barr r. political economy. t.-m. international relations, 1995, p.319. 8. shcherbakov s. s. banking innovations in the digital economy and assessment of the innovative potential of russian banks // belgorod: ooo agency for advanced scientific research (apni), 2020. p. 30-34. 9. inatilloevich j. b. current situation of the stock market of the republic of uzbekistan //conferencea. – 2023. – с. 1-4. 10. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. 11. butaev j., radjabov u. the tax system as a structural link of the financial system //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 4. – с. 1770-1780. 12. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 132 www.americanjournal.org testing the causal relationship between the variables of knowledge and economic activity in iraq for the period (2005-2020) elaf muhsin ali al-imam al-kadhum college maysan-iraq elafmohsin1989gmail.com rawaa yahya khalaf college of administration and economics university of maysan-iraq rewaalmoso@gmail.com zahid. k. badan college of administration and economics university of maysan-iraq dr.zahidbadan@gmail.com a b s t r a c t k e y w o r d s knowledge is a major advantage for achieving human development in any country. knowledge is achieved through the number of years of schooling. the cognitive variables represented in the number of graduates from high school, graduates from university studies, and graduates from postgraduate studies as independent explanatory variables, and gdp as a dependent variable in iraq during the period (2005-2020), internal growth theories emphasize the importance of human capital and knowledge in providing a logical explanation for the development achieved in countries that possess natural resources. the researchers relied on the (ardl) methodology, because the variables are stable in different degrees, based on the dickey test. fuller to reveal the unit root in the model, and the results confirmed the existence of a causal relationship between the gdp and the knowledge variables, and the relationship was from one direction of the gdp to the knowledge variables, and the opposite was not achieved, and the study proved that the independent variables are influential and significant in economic activity. knowledge, human capital, causal relationship, secondary education, university education introduction we can divide the educational reality in iraq into the secondary education stage, the institute, the bachelor’s degree, and beyond, and education in iraq is divided into private education and government education. gross domestic product and knowledge variables that represent human american journal of business management, economics and banking volume 11 april, 2023 p a g e | 133 www.americanjournal.org capital in iraq during the period (2005-2020). and the human capital in iraq is limited by the size of the increase in the gross domestic product, and this is due to the nature of the iraqi economy, which was subjected to the curse of resources resulting from the large increase in financial resources that occurred due to the high prices of crude oil in the global market, and it was reflected in the general budget of the state and was represented by government spending, and the increase in the average per capita income in iraq, especially public sector employees, and the desire of individuals to improve the level of education and the knowledge index increased, compared to the period of the economic blockade. research problem: one of the problems facing the iraqi economy is the knowledge crisis and the decline in its indicators at the global and regional levels, and that the reason for the decline in knowledge and human capital is a result of the decline in the level of education, so the following questions arise: 1-what is the contribution of spending on education in raising the level of knowledge-forming education indicators in iraq? 2-is there a comprehensive strategy to develop solutions to the problems of knowledge and human capital? research importance: the importance of the research stems from the importance and contribution of knowledge and human capital in influencing economic activity, according to the ideas put forward by the theories of internal growth, which considered that economic growth and development achieved in countries that do not have natural resources were limited to the presence of human capital. research hypothesis: the research is based on the hypothesis that: despite the increase in government spending on the education sector, it did not take the appropriate role for it in improving the special indicators in education that make up knowledge and human capital in iraq during the period (2005-2020) research objective: the research aims to achieve a number of objectives, including: 1-analyzing the nature of government spending on the education sector 2-statement of the development in the outputs of the educational system in iraq during the period (2005-2020) 3-testing the causal relationship between the gross domestic product and knowledge variables in iraq during the study period the first topic: human capital in iraq during the period (2005-2020) this indicator shows the nature and size of spending on education in iraq as a percentage of public spending, to show the amount of attention that the government attaches to education in iraq, through allocations in the general budget, and the importance given to economic sectors and state institutions, particularly higher education institutions and the ministry of education. 1-the relationship between spending on education and human capital in iraq american journal of business management, economics and banking volume 11 april, 2023 p a g e | 134 www.americanjournal.org the increase in the percentage reflects the amount of interest in the education sector and considering it a vital sector that can provide other sectors with knowledge and human capital, which is considered a detriment to the requirements of the productive process, as table (1) shows that spending on education in iraq as a percentage of public spending was (5.3%) in (2005) qom increased to (7.8%) in the year (2008) and continued to rise until the year (2009) by (10.2%), after which it began to fluctuate up and down until the year (2015) by (10.7%) and continued to rise until the year (2018). (15.7%), which is the highest percentage achieved during the study years (2005-2020). (al-shudoud: 2006, 73) we notice in table (1) that the increase in spending on education was accompanied by a horizontal and vertical expansion in educational institutions, as most of the increase in education was a result of the increase in the population and the increase in educational institutions in the ministry of education during the school years, in addition to the large increase in state revenues as a result of the rise in crude oil prices in global markets, and it was noticed in the years (20122013-2014) a decrease in the volume of spending to (9.8) billion dinars, and (10.5) and (9.9) for the previous years, respectively, after that the volume of spending increased to at the end of the study years, it is clear from table (1) that the average expenditure specified for education from the general budget during the period is (10.6%) in relation to the total public expenditure, which is less than the global level approved by the international scientific organizations interested in the subject, amounting to (15%). the researchers say that the education sector needs more attention, not only in the amount of spending, but also in the type of spending allocated to educational institutions, to raise the percentage of education’s contribution to the gross domestic product, and not to be one of the consumer sectors that burden and burden the state that relies only on the extractive sector. (ali: 2004, 84) table (1) total expenditure and spending on education in iraq during the period (20052020) percentage of spending on education out of total public spending % (3) total public spending (million dinars ) (1) public spending on education (million dinars) (2) year 5.3 30,831,141 1622272 2005 6 37,494,458 2236286 2006 7.4 39,308,347 2891256 2007 7.8 67,277,196 5250308 2008 10.2 55,589,720 5650972 2009 9.8 70,134,200 6871577 2010 12.8 78,757,665 10115959 2011 9.3 105,139,574 9804496 2012 8.9 119,127,555 10574820 2013 8 125,321,073 9983244 2014 10.7 84,693,523 9089123 2015 13.2 73,571,001 9695720 2016 13.6 75,490,114 10239585 2017 15.7 80,873,187 12689433 2018 11.4 111,723,521 12687081 2019 13.7 76,082,442 10396271 2020 source: prepared by the researcher based on data 1-ministry of finance, economic department, unpublished data, column (1) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 135 www.americanjournal.org 2ministry of planning, central statistical organization, national accounts directorate | column (2) 3-ministry of planning, department of government investment programs, the actual expenditure of investment projects during the period, column (2) 4-column (3) of the researchers' work figure (1) public spending and spending on education in iraq source: prepared by the researchers based on the data of table (1) 2-the outputs of the education sector: the outputs of the education sector in iraq, including legal, university and postgraduate education, may not be consistent with the requirements of the labor market, and may not be consistent with the productive process, as the education outputs represent educated human resources and possess the skill and knowledge that represent the human capital, which he obtained graduates during the period of schooling in the education and education sector, as standing on the educational reality in iraq through table (2) during the research period, as follows: (mani’: 2011, 41) a secondary education: in secondary education there is an increase in the number of graduates, and the increase was fluctuating from the secondary stage during the years of research, as the number was (97230) graduated in the year (2005), and the number increased to (133734) in the year (2009) and the number continued to increase it is a normal situation where the increase is proportional to the average increase in the population with the growth in the number of graduates, until it reached (183,275) in the year (2017), and the number in the year (2020) was approximately (289,463) and an average compound annual growth (7.3%), the increase in the growth rate by a rate greater than the population growth rate is due to the increase in the average enrollment in the preparatory stage and the increase in the number of students. (rasheed: 2008, 76) 0 2,00,00,000 4,00,00,000 6,00,00,000 8,00,00,000 10,00,00,000 12,00,00,000 14,00,00,000 16,00,00,000 2005200620072008200920102011201220132014201520162017201820192020 total public spending public spending on education (million dinars) (2) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 136 www.americanjournal.org b education in institutes and universities: this stage includes graduates from governmental and private institutes and colleges. it also witnessed an increasing increase, starting from the year (2006), so the number of graduates was (70,867), and the number continued to increase until the end of the research period, so the number of graduates increased to (83,451). in the year (2012) and then to (112544) in the year (2016), and the rate of increase decreased in the last four years, so that the number of graduates in the year (2020) was approximately (129658) graduates. it came in response to the expansion of the annual admission plan, and the increase in people's demand for university education in order to obtain a government job, which represents a monthly gain for many graduates who represent a high percentage of disguised unemployment, in addition to the increase in the number of iraqi universities to more than double what was said. the political system in iraq changed a year ago (2003). c postgraduate studies: it is noticeable that the number of graduates from postgraduate studies in iraq has increased significantly, and the number of graduates from international universities has increased significantly, as the number of graduates increased from (5756) graduates in the year (2005) to (8081) in the year (2014). ) and then to (11384) in the year (2017) and the increase in the number of graduates continued after covid 19, and the study shifted to electronic, so the number of graduates was (15111) in the year (2019), then to (17483) in the year (2020), and this increase came in proportion to the significant increase and expansion of the admission plan for postgraduate studies at all levels (high diploma, master’s, doctorate). (al-rikabi: 2012, 94) table (2) the quantitative development of the outputs of the education sector in iraq for the period (2005-2020) graduate studies secondary education university education year number of graduates number of graduates number of graduates 5756 97230 96879 2005 5328 111092 70867 2006 4346 60420 63065 2007 4706 89053 63686 2008 3827 133734 68370 2009 4910 968.2 83669 2010 5849 153874 88491 2011 6888 165889 83451 2012 7752 123558 83727 2013 8081 114482 79298 2014 7547 157140 98802 2015 9524 177543 112544 2016 11384 183275 120816 2017 13006 207299 124324 2018 15111 266670 126692 2019 17483 289463 129658 2020 7.1 % 7.5 % 4.4 % compound annual growth source: prepared by researchers based on data american journal of business management, economics and banking volume 11 april, 2023 p a g e | 137 www.americanjournal.org 1-republic of iraq, ministry of education, general directorate of educational planning, department of statistics, division of statistical reports. 2-republic of iraq, ministry of planning, central statistical organization, directorate of social and educational statistics. figure (2) the number of graduates in iraq during the years of study in secondary education and above source: the figure was prepared by the researchers based on the data of table (2) the second topic: description of the standard model the description of the model and the statement of the dependent variable and the independent variables by describing the knowledge variables that represent the explanatory independent variables, represented by secondary education graduates in iraq (se), graduates from university education (ue), and graduates from postgraduate studies (gs), while the dependent variable is the output the gross domestic product in iraq, the mathematical model was built as in the following: (al-arabi: 2007, 174) 𝑮𝑫𝑷𝒕 = 𝒇(𝑺𝑬𝒕, 𝑼𝑬𝒕 , 𝑮𝑺𝒕) … … … … … … … … . . … … … … … … . (𝟏) the standard form of the study takes the following form: 𝑮𝑫𝑷𝒕 = 𝑩𝟎 + 𝑩𝟏𝑺𝑬𝒕 + 𝑩𝟐𝑼𝑬𝒕 + +𝑩𝟑𝑮𝑺𝒕 + 𝜺𝒕 … … … … … … (𝟐) by taking all the values in logarithm, the proposed model becomes as follows: (abdul qader: 2012, 295) 𝑳𝒏𝑮𝑫𝑷𝒕 = 𝑩𝟎 + 𝑳𝑩𝟏𝑺𝑬𝒕 + 𝑳𝒏𝑩𝟐𝑼𝑬𝒕 + +𝑳𝒏𝑩𝟑𝑮𝑺𝒕 + 𝜺𝒕 … . …(3) in order to obtain the model for measuring knowledge and gdp in iraq, we used a time series of (16) observations that extends from the year (2005) to the year (2020), and below we will analyze the variables according to standard tools. 1united root tests: 0 100000 200000 300000 400000 500000 2005200620072008200920102011201220132014201520162017201820192020 graduate studies number of graduates university education number of graduates secondary education number of graduates american journal of business management, economics and banking volume 11 april, 2023 p a g e | 138 www.americanjournal.org the unit root test is one of the very important tests to know the stability of the variables or not, and it has a basic scientific importance in estimating the regression equation, as the inference of unstable variables gives false and false results, and it may be misleading to the economic researcher, and it is called (spurious regression), and the test is concerned by examining the properties of the variables related to the variables in the study model, during the period (2005-2020). avariable is considered stable if it does not have an upward or downward trend in average over time through one of the unit root tests, despite the multiplicity of tests, but we will use (adf) test augmented dickey fuller, and to test the following two hypotheses: (amara: 2012, 203) null hypothesis: the instability of the time series alternative hypothesis: stability of the time series the adf test, in studying the stability of the x_t series, for example, relies on estimating the models using the following ols method: (salami and sheikhi, 124, 2013) 𝒎𝒐𝒅𝒆𝒍(𝒊): ∆𝒚𝒕 = 𝝀. 𝒚𝒕 − 𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒚𝒕 − 𝒋 + 𝟏 + ɛ𝒕 … … … … … . . … . . (𝟒) 𝒑 𝒋=𝟐 𝒎𝒐𝒅𝒆𝒍(𝒊𝒊): ∆𝒚𝒕 = 𝝀. 𝒚𝒕 − 𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒚𝒕 − 𝒋 + 𝟏 + 𝒄 + ɛ𝒕 … … . . . … … (𝟓) 𝒑 𝒋=𝟐 𝒎𝒐𝒅𝒆𝒍(𝒊𝒊𝒊): ∆𝒚𝒕 = 𝝀. 𝒚𝒕 − 𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒚𝒕 − 𝒋 + 𝟏 + 𝒄 + 𝒃𝒕 + ɛ𝒕 … . . . (𝟔) 𝒑 𝒋=𝟐 the difference between the three models is by including the constant term and direction and without the constant and direction, where equation (5) differs from equation (4) in containing a fixed term (c) and equation (6) differs from the previous two equations in including the constant term (c) and direction temporal (bt), and the first difference is calculated as in equation (7). 𝒚𝒕−𝟏 = ∆𝒚𝒕−𝟏 − ∆𝒚𝒕 … … … … … … … … … … … … . … . … … … … … (𝟕) after testing the three equations, the hypothesis (ho: ∅ = 1) is reached against the hypothesis (h1: ∅˂1). when the null hypothesis is accepted, it means that the unit root is present in the variable and it is unstable and vice versa. (al-abdali, 2007, 20) from table (3), the results of the test to detect stability can be discussed a-gross domestic product: gdpt was found to be unstable in the case of a constant or a constant and a general trend or without them, and the variable was stable in the first difference at all levels and integrated of degree i (1). b-graduates from secondary education: set that the time series is unstable at one level, and stable after taking the first difference of the series at all levels except, that is, the series is integrated of degree i (1). c-graduates from university education: uet after the test turned out to be unstable in the level and in the case of a constant presence, and without a constant and direction, and the variable was stable in a constant state and direction at the level (5%), which means that the variable is integrated of degree i (0). american journal of business management, economics and banking volume 11 april, 2023 p a g e | 139 www.americanjournal.org d-for graduates of get graduate studies, the time series of the variable was unstable at the level, and after taking the first difference, it was stable at all levels and it was integrated from degree i (1). table (3) dickie-fuller test for the stability of the model variables unit root test results table (adf) null hypothesis: the variable has a unit root at level gdp se ue ge with constant t-statistic -1.661 -1.278 -1.710 -2.579 prob. 0.430 0.615 0.409 0.118 probabilities and critical values no no no no with constant & trend t-statistic -1.667 -2.057 -1.542 -2.465 prob. 0.720 0.532 0.773 0.338 probabilities and critical values no no no no without constant & trend t-statistic 1.040 0.563 -0.1835 -0.262 prob. 0.914 0.828 0.605 0.576 probabilities and critical values no ** no no at first difference d(gdp) d(se) d(ue) d(ge) with constant t-statistic -3.154 -3.967 -3.517 -3.058 prob. 0.0428 0.0092 0.0216 0.055 probabilities and critical values ** ** ** no with constant & trend t-statistic -3.183 -3.277 -3.522 -3.055 prob. 0.121 0.114 0.071 0.150 probabilities and critical values no no no no without constant & trend t-statistic -2.848 -3.815 -3.540 -3.124 prob. 0.0076 0.0008 0.0015 0.0040 probabilities and critical values ** *** *** *** a: (*)significant at the 10%; (**)significant at the 5%;(***)significant at the 1% b: lag length based on sic c: probability based on mackinnon (1996) one-sided p-values. 2-estimating the model in the long term using the (ardl) methodology: depending on the results of the stability test, and because of a difference in the degree of integration of the variables, and the presence of a stable variable at the level, and the variables remained stable in the first difference, a methodology had to be used and it was necessary to estimate the long-term relationship to get the following results: (hassan: 2014, 93) after estimating the model, it was found that the model is significant and that the independent variables that represent knowledge in iraq affect the gross domestic product in iraq. as for the value of (r2), which explains (76%) of the changes that occur in the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 140 www.americanjournal.org dependent variable (gdp), due to the change in the independent variables in the first difference, and the value of (d.w) proves that the model is free from the problem of autocorrelation and is located in the acceptance region and its value is (2) correct. as for the explanatory variables that have a significant effect on the model, they can be explained as in the following: (abdul qader: 2007, 241) asignificant d(gdp(-1)) is affected by the gross domestic product of the previous year and by the amount of the difference, so that every change in d(gdp(-1)) by one time affects (gdp) by (1.5). bas for graduates from secondary education, d (se (-1)) is not influencing or significant in the model, meaning that the increase in the number of graduates from secondary education does not affect the gross domestic product in iraq even in the long term. c – the variable represented by graduates from university education d (ue (-1)) is considered influential in the dependent variable in the iraqi economy during the period (2005-2020), as each change by one time in graduates from university education affects the gross domestic product by an amount (5%) d – the change in postgraduate studies d (ge (-1)) by one time, it affects the gross domestic product by an effect factor of (15%), and thus the researchers see that the variables of knowledge and human capital are weakly affecting economic activity, except the significance of the model shows that it is possible to raise the level of contribution of knowledge and human capital in economic activity if a special strategy is developed to develop the education sector and make the education outputs commensurate and harmonize with the requirements of the labor market in the iraqi economy. table (4) estimating the results of the long-term equation according to ardl dependent variable: d(gdp) method: least squares date: 03/13/23 time: 13:00 sample (adjusted): 2005 2020 included observations: 16 after adjustments prob. t-statistic std. error coefficient variable 0.003 4.55 0.335 1.53 d(gdp(-1)) 0.5490 -0.61 44.105 -27.03 d(se(-1)) 0.0222 3.67 0.0138 0. 051 d(ue(-1)) 0.0142 2.77 0.054 0.1528 d(ge(-1)) 0.0328 -2.88 0.1779 -0.5110 e1(-2) 13937.75 mean dependent var 0.79 r-squared 57943743 s.d. dependent var 0.76 adjusted r-squared 37.35016 akaike info criterion 28.11 s.e. of regression 37.60501 schwarz criterion 1.197 sum squared resid 37.40497 hannan-quinn criter. -368.58 log likelihood 2.01 durbin-watson stat source: the table was prepared by the researchers based on the program eviws12 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 141 www.americanjournal.org 3-testing the causal relationship between inflation and unemployment in the iraqi economy: the significance of the model and the ability of the explanatory variables to influence the dependent variable may be the result of a causal relationship in one or two directions from the independent variable to the dependent or vice versa from the dependent to the independent explanatory variable, and according to the test (granger) if we have two variables that represent two time series that reflect the development of two phenomena two different economies during the period of time (t) or more, as in our research, and they are each of the gross domestic product, graduates from secondary education, university education, and graduates from postgraduate studies. (al-shorbaji: 2007, 137) the causal relationship between the two variables (gdp) and (ue) can be expressed as follows: 𝒍𝒏𝑮𝑫𝑷𝒕 = 𝜶𝒐 + ∑ 𝝆. 𝒍𝒏𝑰𝑮𝑫𝑷𝒕 − 𝒊 + 𝒑 𝒊=𝟏 ∑ 𝝍𝒊. 𝒍𝒏𝑼𝑬𝒆𝒕 − 𝒊 + ԑ … … … . . . (𝟖) 𝒑 𝒊=𝟏 𝒍𝒏𝑼𝑬𝒆𝒕 = 𝜷𝒐 + ∑ 𝝀. 𝒍𝒏𝑼𝑬𝒆𝒕 − 𝒊 + 𝒑 𝒊=𝟏 ∑ 𝝉𝒊. 𝒍𝒏𝑮𝑫𝑷𝒕 − 𝒊 + ɣ𝒕 … . . … … . . (𝟗) 𝒑 𝒊=𝟏 where: ԑt and ɣt represent the remainder of the two equations. table (5) shows the causal relationship between the variables in two directions. the steps of the (granger) test are as follows: (arish, 2011, 82) estimating the restricted formula, we mean the following equation: 𝑮𝑫𝑷𝒕 = 𝜶𝒐 + ∑ 𝝆. 𝒍𝒏𝑮𝑫𝑷𝒕 − 𝒊 + 𝑼𝒕 … … … … … … … … … … . . … … . (𝟏𝟎) 𝒑 𝒊=𝟏 to obtain the sum of squares of the remainder (ssru) for the equation estimated above, the program (eviews12) directly gives us the result of the causality test as shown in the following table (5): (al-abdali: 2007, 195) table (5) testing the causal relationship between knowledge variables and gdp prob. f-tatistic obs null hypothesis 0.031 12.783 16 lngdp does not granger cause lnue 0.065 1.003 16 lnue does not granger cause lngdp 0.015 6.362 16 lngdp does not granger cause lnse 0.091 0.291 16 lnse does not granger cause lngdp 0.04 5.438 16 lnge does not granger cause lngdp 0.0001 26.395 16 lngdp does not granger cause lnge source: the table was prepared by the researchers based on the program eviws12 in this part, we try to provide a logical explanation for the causal relationship that the researchers reached. the results of the test were as follows: a-there is a causal relationship in one direction from the gross domestic product to university graduates. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 142 www.americanjournal.org b-the existence of a causal relationship with one direction of gdp to secondary school graduates. c-the existence of a causal relationship in two directions, from graduates of postgraduate studies to the gross domestic product. d-the lack of significant causal relationship between other variables that the researchers did not include with a very limited effect of knowledge and human capital in the iraqi economy during the period (2005-2020), which may be due to three main reasons: the first reason: the rentier of the iraqi economy:the growth in the gross domestic product depends mainly on the production and export of crude oil and the high prices of crude oil in the global market. at a rate that may reach between (92% 97%) during the period (2005-2020), and the revenues from the oil sector were more than (95%) from the sources of the general budget during the period (2005-2020), so the iraqi economy was affected by the repercussions of the "disease". holland, in which the contribution of the extractive sector is high, compared to the low contribution of the commodity sectors, of the gross domestic product, which means that economic growth in iraq is a function of oil revenues whose prices are determined in the global market. (gardner: 2003, 62) the second reason: the deterioration of the education sector in iraq: the iraqi economy is characterized by the dominance of the state over oil revenues, which controls the method of distributing oil revenues to economic sectors and various social services, that revenues have a major role in determining knowledge and human capital in the public sector, and that the state carries out the process of spending on public services that it finances from the extractive sector. the data of table (1) indicates that financial allocations for education have been affected by military spending and investments to confront terrorist organizations, and problems have accumulated in the education sector. the third: the impact of economic reform policies on educationafter the change of the political system in the year (2003), the iraqi interim government adopted an economic philosophy based on the state's control in all aspects of the economic sectors, through applying the recipe of the international monetary fund and short-term reforms, and it had an impact on all aspects of the state, including human capital and other variables. knowledge in iraq, as the government expenditures allocated to the education sector were low compared to countries that adopt a strategy to build knowledge and have a role in influencing the gross domestic product in iraq, by increasing government expenditures on this vital and important sector, so the human capital increases and leads to an increase knowledge, as the rate of spending on education reached (2.6%) as a percentage of (gdp), (5.6%) as a percentage of public spending during the period (2005-20200). (al-hafiz: 2008, 49) conclusions and recommendations first: conclusions: by examining the relationship between economic growth and knowledge variables in iraq, the research reached the following conclusions: 1-the stability test showed that the variables are stable after taking their first differences, with the exception of one variable, as well as for a series of estimation residuals that are not stable in the level and are stable after taking their first differences. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 143 www.americanjournal.org 2-the causal relationship test indicates that there is a causal relationship in one direction from the gdp to the independent variables, with the exception of the relationship between graduates of postgraduate studies and the gdp during the period (2005-2020) 3-the main factor influencing the economic activity is the specific oil revenues, and therefore the economic growth is volatile and variable and affected by the periodic fluctuations of oil prices in the global market. 4-the decline and decrease in spending on the education sector as a percentage of the gross domestic product or a percentage of public spending affected the significance of the knowledge variables in the iraqi economy. second: recommendations 1-it is necessary to keep pace with developments in developed and developing countries regarding human capital and knowledge variables, and to develop a strategy based on the experiences of successful countries in this regard. 2-working on diversifying the iraqi economy through the contribution of knowledge in creating added value in the productive sectors (agricultural, industrial, and service) based on the variables of knowledge generated by the education sector. 3-coordinating with the ministry of finance and planning in order to raise the percentage of spending on education relative to public spending, in line with the international standard, at a rate of no less than (6%) of gdp, or an average of (15%) of public spending in iraq. 4-holding conferences and seminars that are concerned with developing knowledge and raising human capital through a long-term strategy supervised by specialized experts in this field, setting specific goals for them and following up on those achieved, and addressing the problems they face by relying on investing in education and linking it in the labor market to the private sector. sources: 1-ashraf al-arabi, human capital in egypt: concept measurement relative status, arab economic research journal, issue (39), fourteenth year, summer 2007. 2-abadi abdelkader, larifi ouda, indicators of measuring human capital in algeria, 2012, 65 available at www.iefpedia.com. 3-ali abdel qader ali, foundations of the relationship between education and the labor market and measuring the returns on human investment, arab planning institute, kuwait, 2004. 4-fatima manea, the migration of scientific competencies and its effects on economic development in developing countries, the fifth international forum on intellectual capital in arab business organizations in light of modern economies, faculty of economic, commercial and management sciences, hassiba ben bou ali shelf university, algeria, for the period 13 december 14, 2011. 5-amira mohamed emara, brain drain and its impact on economic growth in egypt, journal of arab economic research, center for arab unity studies, issues 63-64, beirut, summer-autumn 2019. http://www.iefpedia.com/ american journal of business management, economics and banking volume 11 april, 2023 p a g e | 144 www.americanjournal.org 6-maysoon zaki, human development strategies and their role in reducing the phenomenon of exodus of academic competencies in palestine (case study of the gaza strip), unpublished master's thesis, faculty of commerce, islamic university, palestine, 2010. 7-abd al-wahhab muhammad rashid, the future of iraq, missed opportunities and available options, first edition, damascus, dar al-mada for printing, 2008. 8-mahdi al-hafiz, now and tomorrow (articles in economics and politics) 2003-2008, almunajjid company for printing, publishing and distribution, baghdad, 2009. 9-edward gardner, more jobs wanted, journal of finance and development, volume 40, issue 1, march 2003. 10-adnan muhammad hasan al-shadoud, the effectiveness of monetary policy and its role in economic stability in iraq for the years (1991-2006), phd thesis submitted to the council of the college of economics, university of basra, 2009. 11-ghaleb shaker bakhit al-rikabi, monetary policy in light of the reform trends in the iraqi economy for the period (1990-2010), a phd thesis submitted to the council of the college of administration and economics, university of kufa, 2012. 12-nizar kazem sayyah al-khikani, the potential of monetary and fiscal policies to influence some macroeconomic variables (egypt and japan) case study, phd thesis submitted to the council of the college of administration and economics, university of kufa, 2008. 13-ali abdel-zahra hassan, using the method of integrating self-correlated models and lag distribution models (ardl) in the effect of cultivated area and prices on rice production in iraq, a master’s thesis submitted to the college of administration and economics, university of baghdad, 2014. 14-magdy el-shorbagy, the relationship between human capital, exports, and economic growth in taiwan, journal of economic sciences, misr university for science and technology, 2007. 15-abed al-abdali, determinants of demand for saudi arabia’s imports in the framework of joint integration and error correction, kamel saleh journal of islamic economics, no. (32), alazhar university, 2007. 16-mr. metwally abdel-qader, deriving the error correction model from johansen's equivalent integration test: a theoretical framework and practical example using eviews6, higher institute of computers, management information systems and management sciences, shubra elkheima egypt, 2007. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 127 www.americanjournal.org tendencies of the formаtion аnd development of the jаpаnese customs service rаhimov sаrvаrbek itisodiyot vа moliyа vаzirligi huzuridаgi bojxonа qo’mitаsining bojxonа instituti qаytа tаyyorlаsh vа mаlаkа oshirish fаkulteti kаttа o’qituvchisi bojxonа xizmаti mаyori nаbijonov аbdulаziz g’аyrаtjon o’g’li itisodiyot vа moliyа vаzirligi huzuridаgi bojxonа qo’mitаsining bojxonа instituti 4-kurs kursаnti a b s t r a c t k e y w o r d s this аrticle provides informаtion аbout the estаblishment, development аnd role of the jаpаnese customs service in the development of the country todаy, аnd provides а detаiled overview of the аchievements аnd shortcomings of the innovаtive customs аdministrаtion of jаpаn jаpаn customs service, customs аnd tаriff bureаu, world trаde orgаnizаtion, world customs orgаnizаtion, extrаterritoriаlity, meidzi, аseаn, аseаn+3, аseаn+6, аpec, nаccs, gаtt, customs cooperаtion council. introduction in the hague, for more than a hundred years, the judiciary has been on the verge of collapse: the economy, the modernization of science and culture, as well as the modernization of science and culture, has led to a deep globe-shaped jungle that reveals the associated objective historical tendencies. in natija, an'annavian elements and g'arabic innovations were shattered by the new form of property that they had united. one of the most important aspects of the watchtower's socio-economic development is the socio-economic development of the sabiabid and the emphasis on the right alchemy is significant, and this factor is based on the side of many g'rb scientists. (matthew 24:14; 28:19, 20) today, the watch tower publications index and the new york's witnesses have been published. in the mid-19th century, the watch tower publications publications guide for jehovah's witnesses were published, to account for the economic well-being of the country, to ensure the integrity of exportimport operacy, and to promote cooperation improving growth, investment and export efficiency, improving the quality of life of the population, and improving the quality of life of the population. in today's globe, which is rapidly changing the atmosphere of the khalaro svdo environment and internal affairs, the pride in responding to this transformation is a bubble in the republic of uzbekistan and in the foreign advanced state-of-the-art bojxona the priority of strengthening the role of the bojxon government in our orchid era, the study of advanced technologies and innovative aspects of foreign states, and the introduction of ulrnia in the national anthelm has been a priority. in the meantime, we american journal of business management, economics and banking volume 11 april, 2023 p a g e | 128 www.americanjournal.org have made it possible for us to study the philosophy of the bojxon service in the valley of jacob, and to address the success of the great-grandson to the national anthome. in the last hundred years, the use of tomato imports and export duties in the kunchik country has been attributed to several thousand years of age. specifically, in 1633, after the tokugavian dynasty began its syogunligi and announced the collapse of japoniya, it was possible to visit the quadruple of the 19th century the port of negasaki was open to the czech republic and the svdosi for the cylinders and cylinders of the cylinder and the cylinder of the cylinder. but this predicament does not last long. in june 1853, the american navy, led by commodore matthew perry, under the command of the indian navy, urag and the government of japoniyah, who knew about the entry of commodore perry's weapons, accepted his sheep's tongue, "closed door-to-door intelligence " that knows how to sign "the emperor of japoniya and the american sheikh shtlaari" reached its end. after the g'orrb dwelling, which was successful in forming a shred of peace and friendship, syogund began to ask syogund to form a siberian shredder, which was the main problem of his own, and finally, the aqsh was the first to sign the "friendship and svdo lizard." following this event, the same shredders were formed, including golland, rossius, great britain, and france. the opening of four ports in this shrimp was held on the negliguration of the g'harbor valley. ulard also has its own intestinal shrimp, which distorts extrusion and import/export duties. in 1866, the transition to acceptance led the japoniya government to reduce the duties to a 5 percent administrative station. in the alps, this pearl-shaped stupen has had a serious impact on the economy. at the same time, the watch tower publications index and the united nations index and the watch tower publications index and the united nations convention on the elimination of all forms of discrimination against women were initiated. in accordance with the well-signed svdo lizard, ports of khakodat, negasaki, yokohamah, xyogo, osak, and nigeria were opened for the khaklaro svdo. the shaft, perhaps made of a view of a tower saw "the one who is walking on a road suddenly finds that it becomes two diverging paths." after the mamlact was opened, the meydzi government increased its ability to modernize the property. specifically, the structure of the "savdo and commercial orientation discernment" in great britain prompted a careful review of the svdo shredder, which is not equal to that of other possibilities. since a long time ago, the autonomiy, which has been dreaming of a long time ago, was fully restored by 1911. the resulting embryo was allowed toper inserted into her womb, where it implanted. in each port, the jurisdiction of the molecular government was directly under way. by 1897, a number of laws and regulations governing the bojxon were adopted to promote the disciples' disciples, especially the "law of bojxon" and "the law of the boj. at the same time, the secretary-general, the final department, six divisions, and the number of employees were established in bojxon, which was located on the 1,240th of july. knowing the greatness of the war, jacob's craftsmanship was shattered in a sensitive drawer. by the month of december 1941, after the war in the pacific region was fought, jacoboni's nineteenth-century assyrian assyrian, jubiles, was restricted to asian prisoners and manjuria. in an effort to strengthen the hiernal cavity, the bone marrow was reduced to rubble. thus, in 1943, the governor-general's office began to lose its philosophy the building has stopped its philosophy, and the employees of the great and the building and material objects have been established by the bureau of maritime sports. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 129 www.americanjournal.org in accordance with the fact that the war of peace was fleshly, the allied forces were on the verge of collapse, beginning june 1, 1946, jacobonia was awarded a six-year-ounce [6 m] bojxon, in section 35, 45 tons, and 68 guardian posts began their work. his staff then reached 1779 people. the economy of japoniya began to grow steadily, and japoniya began to join the economic well-being of the country. in 1955, the watch tower publications index and the polo guide for jehovah's witnesses were published. the review of the cathedre has been carried out on the outsourcing of the stock, and the bojkhona hospital nomenclature has been introduced in the aesthetic system to decipher the turf. on june 15, 1964, the 38th member of the governing body of jehovah's witnesses (now jahan bojxon) was awarded a certificate of award. as he gazed down on the town and the valley that spread out below it on one hand, his heart likely swelled with joy and pride. the japoniya turf system was introduced in a fully compatible lobby to the bojxona civil engineering kengashi nomenklaturasig, and by 1972, the watch tower publications index and the polo guide for jehovah's witnesses were added to the convention on the elimination of all forms of discrimination against women. we can see suddenly that this short postwar tribe has been replaced by a jawbone of jawbone in an environment that reaps the jawbone of a jawbone. bojxon's post-war history shows that in one country, the duty of the bourgeon itself could not have increased its functionality, perhaps because the craftsmanship of the craftsmanship could be increased to a fuller cylinder. in the midst of a total of 1,000 gallons [1.5 l] of economic disaster, to ensure the integrity of exportimport exports, and to promote the economic well-being of the country, increased investment and export semancy, improving the quality of life and quality of life of the population. in today's globe, which is rapidly changing the atmosphere of the khalaro svdo environment and internal affairs, the pride of responding to this transformation has led to a strengthening of the role of the duties administration in this year. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. this is the sea portable and the aeroporteur, which captures the life span of the hague and the life of the people. bojxon's service stands at the front of this svdo philosophy. zer·a·niʹah is a member of the governing body of jehovah's witnesses, a member of the governing body of jehovah's witnesses, 1 tons of the institute of improvement, 1 tons of the marquezine bojxon lecturer, 189 tons of bourgeon idorators, 120 tons of seaports, and 30 tons of exporters. today, more than 9,000 bourgeois employees are being serviced in the hague. the following laws are the main laws governing corporate activities: * the law of the righteous one * the law on bojxon's translations * the law on the correctness of the translation of the law * the law on the correctness of the watchtower and aegean * law on the elimination of all forms of discrimination against people * the law on the elimination of stimulative drugs * the law on the elimination of nerotics and psychotropic modules * the right law of opium today, the watch tower publications index and the watch tower publications index are published: davlat va jamiyat xavfsizligi taminlash. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 130 www.americanjournal.org zararli buyumlarning yaponiyaga tovarlar harakatini kuzatish va nahardat. the hotel islocated in the heart of the historic centre of the city, close tothe historic centre of the city, closeto the historic centre of the city. poniya jamiyatining xavfsizligi t a'minl. bojxona to'lovlari va soliqlarni to'ri va dolatli tarzda yig'ish. proper and fair collection of corporate fees and domestic consumer taxes as a tax collecting agency (about 9.1 trillion), equivalent to almost 14.1% of national tax revenue s а vdo t а rtib-t а omill а rini y а n а d а osonlаshtirish. international trade distribution will further facilitate customs procedures in ensuring security and further strengthen the multilateral trading system through trade negotiations such as epas. in accomplishing these three main missions, the customs and tariff bureau sets the following goals: installation of modern inspection equipment. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. cooperation with private enterprises. development of international trade facilitation by establishing partnerships with private enterprises cooperation with foreign customs authorities. improving the quality of customs operations by strengthening cooperation with foreign customs authorities through mutual assistance agreements in the field of customs cooperation with other government agencies. establishing a strict system of interaction of information with relevant government agencies through close cooperation further application of ict. implement simplified and effective import/export procedures and better services for tif participants by using advanced innovative technologies for customs clearance systems encourage trade negotiations. simplifying and harmonizing customs procedures, conducting trade negotiations such as epas involved in customs cooperation and information exchange bevosita bojxona xizmatining markaziy bojxona etqarmasi bojxona va tarif bureau, which isthe internal bureau of y a poniya moliya v nadi va tuzilmani bureau director-general,unga twomember ceo of the bureau of bosnia and herdian affairs. bojxona va ta rif bureau of sixsections in a fewa idoralar mavjud. xalqaro masalalarga kelsak, ikita maslahatchi idorasi va economic partnership idorasi mavjud. 2019the year is a prel holatiga blinda, bureaua 191 nafar aʼzo fahigherat yuritadi. yaponiya bojxona organlari fahighatiga naccs (yaponiy a avtomatlashtirilgan yuk va port konsolidatsiya lashgan system) introduce an electronic a xborot systemandbojxonaga doir barcha procedurealari mazkur system orqali amalga increase adi. system mamlakatning 99% bojxona brokerlarini oʼzida qamrab olgan. yaponiya jahondagi koʼplab davlatlar qatorida jahon savdo tashkiloti (jst) doirasidagi tashqi savdoni t artibga comparison, har tomonlаma integrаtsion grouplаrgа ʼzolik vа agreement-bitimlаr imzolаnishidа fаol qаtnаshmoqdа , jumladn, economic growth high a n osiyoda asean, a sean+3, a sean+6 va a pec ka bi ko'plab two sidesama "erkin sa vdo shartnomalari" ina "economic hamkorlik agreementari" (fta/epas) bilan muzokaralar taken borilmoqda v a agreeda. othera tomondan, yaponiyadagi inner vaziyatni reviewak, shahar va village joylari o'rtasida gi economic tafovutlar, qarigan jamiyat bilan kurashish va davlat moliyasini tiklash kabi ko'pl ab muammolarni hal american journal of business management, economics and banking volume 11 april, 2023 p a g e | 131 www.americanjournal.org e k. yaponiya governmentati tobora o'z xalqining xavfsiz va barqaror h the hotelislocated in the heart of the historic centreofthecity,close to the historic centre of thecity. today kunda yaponiya bojxona xizmati o'z fahighatini quyidagi normativ hujjatlar orqali amalga increaseadi: xulosa the hotel is located in the heart of the historic centre of the city, close to the historic centre of the city, close to the historic centre of the city. ynida uqorida circular species variable development anish bosqichlaridan passed, today's day agi et ala ko'plab davlatl arga ornak bo'la oladigan innovative bojxona xizmatini shakillantirgan. today, the main function of the aoponiya customs service differs from the premises of uzbekistan, and it is not a fiscal function, but intellectual property rights it is carrying out its tasks of protecting and ensuring the safety of citizens, since the forgotten corporate fees do not constitute a large part of the state budget. during the course of the study, i was convinced that japan achieved these achievements by developing international cooperation, concluding multilateral agreements with foreign countries, and various by joining trade blocks. we too need to accelerate the process of concluding such multilateral agreements and entering into international trade blocs as much as possible. available literature and internet resources: 1. customs act of japan（act no. 61 of 1954) (electron manba) – url: https://www.kanzei.or.jp 2. yukiyasu aoyama, the director-general of customs and tariff bureau, ministry of finance (mof), japan, “perspectives of customs in the 21st century: from the experiences of japan customs” (electron manba) – url: https://www.researchgate.net 3. law enforcemnt at the border against illicit drugs and other illegal items (elektron ma’nba) – url: https://www.customs.go.jp 4. ensuring peoples' security and safety (eletron manba) url: https://www.customs.go.jp a. m. nikolaev, "the role of japanese customs in suppressing the smuggling of weapons into the country" (elektron manba) url: https://cyberleninka.ru 5. brochure: history of japan customs – (internet ma’lumot) – url: https://www.customs.go.jp 6. anastasia gavrilyuk, "japan'scustoms service in the new millennium" – (internet resurs) – url: https://elib.bsu.by1. american journal of business management, economics and banking issn (e): 2832-8078 volume 1, | june, 2022 p a g e | 1 www.americanjournal.org public enterprises: their role, importance and need in economic development arshi naim department of information systems king khalid university, ksa arshi@kku.edu.sa a b s t r a c t k e y w o r d s the economic development of a country is impossible in the absence of infra-structure facilities. no private entrepreneur has ever afforded to build an infra-structure facilities and it is not a part of the philosophy of the private enterprises to undertake an economic activity just because it is good for the nation. this small study presents the historical back ground of growth and development of public enterprises in india and show how they contributed in the world’s biggest economy economic development, infrastructure, public enterprises, private enterprises introduction in the early years of the nineteenth century, the era of industrial revolution., there was a common belief that the development of human personality and economic growth was best assured when the individual was left to him and has completely lost its meaning. the most important factor leading to the intervention of the state in economic and industrial spheres was the growth of social evils which accompanied the industrial revolution. the industrial revolution created 'private capitalism', which damaged his security, his welfare and even his whole future. the inexorable laws of the policy of laissez-faire began to operate in action and reaction, distress and luxury, starvation and plenty, richness and nakedness and they became so visible that state intervention became a historical necessity. the state today has emerged as an active participant in the economic and industrial fields. today, there is hardly any sphere of human activity which is not controlled and regulated by the state. almost in all the countries these respective governments are engaged and directly in the setting up and management of economic and industrial enterprises. these activities range from transport systems rail, road, air and shipping enterprises and waterways-the generation of power and its distribution, irrigation -with vast networks, the mining and processing of coal, iron and other minerals, banking and insurance, to industrial establishments of all kinds, such as integrated steel plants, machine, tools, fertilizers and chemicals, the manufacture of aircraft, locomotives and of transport equipment, indeed, almost every conceivable sort of industrial and commercial activity. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 2 www.americanjournal.org limitations of the private enterprise: emergency of the public sector economic thinkers like rodbestis, cassalle and wagner believed that national economy should be transferred from the control of an individual to the control of the community in general. adam smith, the architect of the classical theory of laissez-faire had to reconcile that it is the duty of the state to maintain certain public works. the need for public enterprises arises out of the fundamental duty of the state to work for the welfare of the people. the french economist, dupont-white remarks. they are certain vital things which the individual can never do, either because he has not the necessary strength to perform them or they would not pay him. the state is the only entrepreneur who can undertake such tasks. public enterprises are promoted for equitable distribution of social products which form the very basis of the general welfare of the society. private enterprises are guided by profit-motive; it leads to exploitation, inequalities in the distribution of wealth, lopsided development of the country and dependence upon others. the main and sol. objective of the private sector is to maximize their profit. against this, the management o-f public sector enterprise is enjoined upon to pay: due weight age to special considerations and compulsions which can only be neglected to the despair of the teaming, toiling and moiling millions in the country who wistfully and hopefully look to these enterprises as the harbinger of prosperity in the shape of increased employment opportunities and wages, cheap and plentiful consumer goods, developed infrastructure etc. with these benefits in view, naturally profit goals take a secondary place but by no means is it a -forgotten consideration as eventually the profits are bound to accrue when the public enterprises attain full adulthood. the economic development of a country is impossible in the absence of infra-structure facilities. no private entrepreneur has ever afforded to build an infra-structure facilities and it is not a part of the philosophy of the private enterprises to undertake an economic activity just because it is good for the nation. in india, in the first 20 years of planning about 75% was devoted to the creation of basic infra-structure facilities. the public sector goes in for huge investments in those areas which are left undeveloped by the private enterprise. private sector cannot undertake a project involving huge investment and risk with remote chances of profit. in the words of smt. indira gandhi (former prime minister) "we advocate public sector for three reasons; to gain control of the commanding heights of the economy, to development in terms of social gain or strategic value rather than primarily on considerations of profit; and to provide commercial surpluses with which to finance further economic development". the task of the public sector is to harmonize the plans and operations of their enterprise and, dovetail them with large national goals that would directly promote the economic wellbeing of the community. in the present study, we have studied three metal sector enterprises. the history and development of each one of them is given in this article. steel authority of india limited the question of setting up a holding company for steel and associated input industries was first considered in 1971 by the government of india. the following two objectives were considered by the government of india of india in this direction: american journal of business management, economics and banking volume 1, june, 2022 p a g e | 3 www.americanjournal.org 1. rapid growth of the industrial sector of the economy with the state as a leading agent of the combined growth in india 2. ability of the government to direct investments into areas which are strategic from the point of view of future development based on the above considerations proposal to set up a holding company for steel and associated input industries was approve by the govt. of india in january, 1972 and finally given shape and born as the steel authority of india ltd. (sail) on 24th january, 1973. further, indian iron and steel company (iisci) which came into force in 1952 in the private sector had successful working for many years. years ran into trouble and were taken over by the govt. of india in 1972 and subsequently became a subsidiary company of sail. consequent upon the public and steel sector iron companies (restructuring) and miscellaneous provision act, 1978 coming into force w.e.f. 1st may, 1978 the companies dissolved and integrated with sail were: 1. hindustan steel ltd. 2. bokaro steel ltd. 3. salem steel ltd. 4. rourkela ispat ltd. , 5. durgapur ispat ltd. 6. sail international ltd. all the shares held by the central government in the share capital of indian iron and steel company ltd. (iisco) stood transferred to and vested in sail. now iisco became a fully owned subsidiary of sail. integrated steel plants at bokaro, bhili, durgapur, rourkela, salem and alloy steel plant are working under sail. vishakhapatnam and vijaywada steel project are also progressing under sail. organizational set up the chairman p-f the board of directors of sail is appointed by the president of india. the board includes at present chairman, vice-chairman, four managing directors and five full time directors in charge of functions of areas such as finance, personnel, technical production and commercial. the secretary to the government in the ministry of finance and the secretary in the planning commission are also appointed as non-rotational directors in sail to bring to bearon the decision making process in the board of sail. in addition to the above, part-time directors are also appointed in sail by the government. these part-time directors retire by rotation, one third to retire in every annual general meeting. representatives of public sector financial institutions are also included in sail boar-d. the managing directors of plants and subsidiaries are appointed by the chairman of sail but only with the approval of the president of india. the appointment of members of the boar-d of sail in other plants and subsidiary companies has done well with a view to facilitating coordination on important matters. gross block and net worth american journal of business management, economics and banking volume 1, june, 2022 p a g e | 4 www.americanjournal.org table 1. gross block and net month in steel authority of india limited (1995-96 to current) (rs. in crores) years gross block net worth 1995 3177.14 3263.50 1996 3480.16 3170.60 1997 3646.53 3160.11 1998 4711.02 3431.92 2000 5596.12 3809.01 2001 6007.56 3875.62 2002 6875.03 3955.53 2003 7658.26 4253.68 2004-current 8674.19 4453.45 source: annual report and accounts of sail the gross block figures were, rs.3177.14 crores in 95 which increased continuously up to rs.8674.19 crores in 2012 to 2020. the net worth of the company however showed a fluctuating trend. it was 3263.50 crores in 2010. it decreased to 3170.60 crores and 3160.11 crores rupees in the years 2012 and 2020 respectively. then again it showed an increasing trend and net worth increased to 3431.92 crores rupees in 1998 and 4453.45 crores in 2014. the steel authority of was formally india ltd. incorporated on january 24, 1973 authorized capital, 1973 with an authorized capital of rs.2000 crores which was increased to rs.2500 crores and rs. 3000 in 1978-79. the authorized capital of company increased to rs. 4000 crores in 1981-82 and rs. 5000 crores in 1987-88 and it is still increasing. the issued and subscribed capital of the company as on 31st march, 1989 was rs. 3985.89 crores. it is evident from the above description that sail in the public sector has been developing but the rate of development has been very slow as compared to other countries in the world like the ussr, the usa, west germany and u.k. etc. bharat aluminum company limited (balco) the first public sector unit in this industry was bharat aluminum company limited (balco) incorporated on november 27, 1965. the company has been ent1rusted with the implementation of two massive aluminium projects – one at ratnagiri in maharashtra and the other at korba in madhya. ratnagiri aluminium project this project is based on the utilization of bauxite deposits located at udgiri and dhangarwad in kolhapur district of maharashtra estimated at about 85 lakh tonnes and 130 lakh tone, respectively. the smelter is located at ratnagiri with the power supply from the neighbouring koyna hydel station. in january, 1966, this company entered into a technical consultancy agreement with messers vareinige aluminium works of west germany. the detailed project report submitted by these consultants placed the project cost at rs.68.88 crores including rs.18 crores in foreign exchange plus rs.4.55 crores for the township. on scrutiny, these estimates were found on the high side. the terms of the consultancy agreement were also too rigid to be acceptable. the west american journal of business management, economics and banking volume 1, june, 2022 p a g e | 5 www.americanjournal.org germari consultants expressed their inability to modify the agreement. the agreement with them had, therefore, to be terminated. later in august, 1969 the balco entered into a fresh consultancy agreement for this project with messers chemocomplex of hungary who were already associated with the korba project of the company, under this agreement, the detailed project report was prepared by the national industrial development corporation, the indian engineering consultants of the balco, in association with messers chemokomplex who also supplied process and operating know-how and guidance from erection to start-up of the plants. the project report for the smelter plant was submitted to the government on 16th february, 1972 for approval. it was decided to set up the smelter with the technical assistance ot the ussr ahead of the alumina plant with a view to utilise the expected surplus from the korba complex. the government sanctioned ratnagiri project on 29th april, l 1974 at an estimated cost of rs.78.825 crores. korba aluminium project the korba project is based on the bauxite deposits in the amarkantak and phutkapahar areas in madhya pradesh and electric power from the porba thermal power station. according to the geological survey of india, the bauxite deposits at phutakpahar and amarkantak were estimated at 25 lakh tonnes and 84 lakh tonnes respectively. survey and prospecting of neighboring areas taken up by the geological survey of india indicate a further reserve of about 110 lakh tonnes. the korba aluminium project will produce two lakh tonnes per annum of alumina and one lakh tonne per annum of aluminium metal including about 5,000 tonnes per annum of aluminum semis (rolled and extruded products). messers chemokomplex of hungary, in association with national industrial development corporation ltd., submitted a detailed project report in december, 1966 for the alumina plant at korba. an agreement for the supply of detailed engineering knowhow, supervision, etc. for the plant was signed by the company in december, 1967 with messers chemokomplex of hungary. all the major contracts for the technological establishments for the alumina plant have been entered in to; civil construction work has been completed. the first stream of the alumina plant have been corresponding to 50 per cent of its rated capacity, was commissioned on april 21, 1973.upto march, 1975 the total expenditure on this project amounted to rs.36.00 crores. during 1975, performance trials of the· alumina plant were successfully completed. the production of calcined alumina during 1974-75 was 55,350 m.t. as against 11,548 m.t. in 1973-74. the target for 1975-76 was fixed at 70,000 tonnes of alumina and 18,000 tonnes of aluminium. the actual production during this year was 69,700 tonnes of aluminium metal. during 1976-77 the production of alumina increased to 1,04,370 tonnes while the production of aluminium was 24,758 tonnes. the installed capacity of korba smelter was increased to 50,000 tonnes from 25,000 tonnes on 20th september, 1977. the company during 1977-78 faced power crises and the actual production of alumina was 1,16,460 tonnees while the production of aluminium was 31,841 tonnes. the production during 1978-79 increase 1,26,650 tonnes of alumina and 33,751 tonnes of aluminium. the protraction of alumina during 1979-80 decreased to 1,16,640 tonnes whi1e the production of alumina increased to 35,751 tonnes. during 1990-91 the installed capacity was increased to american journal of business management, economics and banking volume 1, june, 2022 p a g e | 6 www.americanjournal.org 1,00,000 tonnes. the production of the company increased steadily. during 1997 the production of alumina was 1,60,640 tonnes while that of aluminium was 87,000 tonnes. the production during 1999 was 37,320 tonnes of aluminium ingots which increased to 36,400 tonnes in 1997 while it decreased to 28,040 tonnes in 1998 and further to 21,609 tonnes. rural development programme bharat aluminium company limited has adopted four villages, two in and around its korba complex, one at the amarkantak mines and another near its township and contained to make efforts for the peripheral development of these villages. besides providing free medical aid and medicines balco has also taken steps to popularise family planning/welfare programmes, tree plantation and adult education in these villages. ecology and environmental protection balco has taken steps not only to preserve the existing trees to the maximum extent possible but also launched a vigorous tree plantation program in the mining areas after the extraction of the ore balco has also taken steps to protect the environment pollution. a comprehensive environmental management plan has been drawn up to safeguard the ecology and environment for its new mining project at gandhamardan. the production of aluminium ingots during 2003 and 2004 decreased while the production of wire rods, extruded products and rolled products increased the production of foil products and conductors fluctuated from year to year. hindustan zinc limited hindustan zinc ltd was incorporated as a government company on january 10, 1966. during 2004 hzl has completed its thirty three years as a public sector company. hzl had the honor of inheriting an ancient tradition of mining and smelting in the country. the works at rajpura, dariba and zawar bear testimony to the presence of flourishing mining and smelting industry several hundred years back. after lying dormant for several centuries due to historical reasons, mining and smelting of lead and zinc came back to life again with resumption of mining operations at zawar in 1938. simultaneously, lead smelting operation commenced at tudoo in bihar. those two units formed the nucleus of zinc & lead industry in 1966 at the time of formation of hzl. soon after, to meet country's growing needs in the non-ferrous sectors. hzl embarked on a massive expansion programme in its quest for self reliance. a number of mining and smelting projects were undertaken and commissioned during this period. the mining capacity was increased by expansion of zawar itself and addition of maten rookphosphate mine, agniendala lead minee (taken over from hcl), sargipali lead mine and rajpura dariba lead zinc mine. on the smelting capacity also, the company underwent a phenomenal increase with the commissioning of debari zinc smelter and vizag lead zinc smelter. the demand for non-ferrous metals like lead and zinc will be increasing with growing industrialization. the need for giant efforts to augment the domestic capacity is, therefore, imperative. the phenomenal expansion of hzl in recent years has already reduced country's dependence on imports considerably. the step towards self reliance will continue. the recent american journal of business management, economics and banking volume 1, june, 2022 p a g e | 7 www.americanjournal.org discovery of vast deposits at rampura-agucha in rajasthan has further brightened up the leadzinc horizon in the country and has given a new dimension to nation's efforts towards self-sufficiency in the mineral sector. results the physical performance of the company continued to improve during the year 2012 as a result of which the year witnessed new high levels of production, both at mines and smelters. the total production (zinc and lead) at 77331 tonnes was the highest so far achieved and was 19% higher than the previous year. both zinc and lead separately achieved record production, besides, the silver production during the year achieved new high level and was 19% higher than the previous year. the sales turnover at rs. 274.72 crores also reached new heights. the company was able to earn a gross profit of rs. 65.77 crores and a net profit of rs. 3468 lakh during the year deposits steep rise in power tariff, imposition of mineral land rent in the states contributing substantially to the production of zinc/lead ores, besides normal escalation, statutory increases like ceiling for bonus entitlement etc. which had severe impact on the margins of the company. this has been possible by sustained efforts to increase production, improve productivity and curtail costs. ore strategy in order to improve the physical and financial performance in the coming years, the company made an in depth examination of its operations and has identified various short-term and long-term measure towards achieving these objectives. these measures include higher capacity utilization, installation of additional captive power generating capacity to supplement and shortfall in grid supplies, productivity improvements and saving in expenditure, technological improvements, value added schemes, optimization of ore-mix etc., to reduce the overall cost of production. although these efforts will add to the production and profitability of the company, a major reduction n the cost of production can be possible only by the early commissioning of the proposed new zinc lead smelter (rampura agucha mine) because of metal content in mines is 15% which is higher by 9.4% from exisiting mines. gradually company is diversifying its activities by adding new range of products. today diversification and creation of value added products have become essential for the basic survival of a commercial enterprise. some areas identified for diversification are major alloys of zinc and lead. such as galfan, zinc, aluminium foundry alloys, lead. such as galfan, zinc, aluminium foundry alloys, lead antimony alloys etc. to expedite the preliminary work in these areas and also to further identify areas of diversification, a product development cell has been formed which will carry out market research to find new applications and uses for the products. the company understands the role of technology for increasing productivity and is taking steps to update the same. since most of our mines are underground, addition of bulk mining technique has been proposed. in the case of smelters, residue treatment plant for improved recovery of zinc, extraction of silver from the zinc and copper concentrates, sulphruic acid from the lead circuit, automatic costing of zinc and lead ingots production of copper and cobalt sulphate from copper/cobalt occurring as impurity in the ore, are some of the areas in which action has been initiated. various r & d projects are in hand to further improve the technologies through in-house efforts. recognizing the importance of r & d the american journal of business management, economics and banking volume 1, june, 2022 p a g e | 8 www.americanjournal.org company has earmarked up to 1% of the gross turnover for this activity. company's policy regarding atmosphere the rapid industrial growth envisaged during the seventh five-year plan calls upon special efforts towards maintaining a clean and healthy environment by the industry. this is an important social responsibility of the company and the company does not merely look upon it as a statutory requirement. the company continues to give the highest priority to this area and has been spending about rs. 3.5 crores per annum for this purpose. regarding laborers and employees the company always possesses a liberal view with its employee or laborers. the company attaches great importance to training and has a well-defined policy in developing the skill, knowledge and competence of all its employees on a continuous basis. the company is aware that healthy and harmonious industrial relations are essential for optimum organizational performance and its industrial relation approach is characterized by participative management, fair and enlightened collective bargaining system and progressive personnel policies. as a result of this integrated system approach, it has been by and large able to maintain cordial industrial relations in most of the eight mining and smelting units. it has always been the effort of the company to be a model employer and therefore in pursuit of these objectives a comprehensive range of welfare amenities and liberalized benefits are extended to the employees. production the overall performance of the company improved during 2004, compared to the preceding year. at zawar group of mines ore production, melting and lead concentrate production during the year were higher than lead concentrated production during the year were higher than the preceding year. with the improvement in lead content of the ore, the production of lead concentrate was more than the target, though the production of zinc concentrate was lower to decline in the zinc content of ore. financial results the company has been able to earn a gross profit of rs. 6577 lakh and a net profit of rs. 3468 lakh for the year ended 31st march, 1989. the steep increase in power tariff by the rseb and imposition of minerals land rent by rajasthan govt. from july, 85 beside increased costs of stores and chemicals, statutory increase in ceiling for bonus entitlement etc., severely affected profitability. despites all above, the company maintained its track recorded of generating surplus by improved production, productivity and economies in expenditure. the gross profit and net profit for the year ending 31st march, 2004 are shown below in comparison to the previous year. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 9 www.americanjournal.org table 2: production during the year as compared to the preceding five years (rs. in lacs) production 2012 2020 value of production 29570 22362 gross profit 6577 3677 interest 1413 1695 dep. 1696 1624 net profit 3468 358 the government of india approved implementation of the integrated project comprising rampura-agucha mine and chanderiya lead-zinc smelter on 17th november, 2012 at an estimated capital of rs. 617.20 crore with a completion schedule of 30 months from the date of approval. the foundation stone for the rampura-agucha mining complex was lead by hon'ble union minister of steel & mines, shri m.l. fotedar on 20th nov., 2012. new project and future planning integrated project for rampura-agucha mine and chanderiya smelters: pubic investment board approved of the integrated proposal and recommended implementation of rampura agucha mine and chanderiya smelter project at a cost of rs. 366.40 crores. the proposal is under consideration of the government. pending approval of the integrated project, pilot pit excavation for defining design parameters for beneficiation of ore has been taken up at rampura-agucha. further to improve productivity in the pyro-metallurgical lead and silver refineries at viazg and tundoo smelters the company also entered into a technical consultancy agreement with mim technology marketing ltd., u.k. conclusion in keeping with the increasing awareness and use of computer by various levels of management, the company paid sustained attention to enhance the hardware facilities at all its units for distributed data processing. in addition to the fourth generation computers at udaipur and hyderabad which had been in operation since long, the company added micro systems at debari smelter and zawar mines and plans area a foot to provide similar computer facilities at vizag smelter and rajpur-dariba mines. new software had been developed during the year and a comprehensive mis package was put to practice. it is heartening to report that computer usage in more sophisticate areas like product-mix, forecasting, irr, geo-statistics, project management has increased. references 1. naim, a., sattar, r. a., al ahmary, n.., & razwi, m. t. (2021) implementation of quality matters standards on blended courses: a case study. finance india indian institute of finance vol. xxxv no. 3, september 2021 pages—873 – 890 2. naim, a. (2021). application of quality matters in digital learning in higher education. texas journal of multidisciplinary studies, 1(1), 3-12. 3. khan, n., naim, a., hussain, m. r., naveed, q. n., ahmad, n., & qamar, s. (2019, may). the 51 v's of big data: survey, technologies, characteristics, opportunities, issues and american journal of business management, economics and banking volume 1, june, 2022 p a g e | 10 www.americanjournal.org challenges. in proceedings of the international conference on omni-layer intelligent systems (pp. 19-24). 4. naim, a., & alahmari, f. (2020). reference model of e-learning and quality to establish interoperability in higher education systems. international journal of emerging technologies in learning (ijet), 15(2), 15-28. 5. naim, a., alahmari, f., & rahim, a. (2021). role of artificial intelligence in market development and vehicular communication. smart antennas: recent trends in design and applications, 2, 28. 6. naim, a., hussain, m. r., naveed, q. n., ahmad, n., qamar, s., khan, n., & hweij, t. a. (2019, april). ensuring interoperability of e-learning and quality development in education. in 2019 ieee jordan international joint conference on electrical engineering and information technology (jeeit) (pp. 736-741). ieee. 7. naim, a., khan, m. f., hussain, m. r., & khan, n. (2019). “virtual doctor” management technique in the diagnosis of ent diseases. joe, 15(9), 88. 8. naim, a. (2020). realization of diverse electronic tools in learning and teaching for students with diverse skills. global journal of enterprise information system, 12(1), 7278. 9. naim, a., & bashir, a. (2016). application of quality matters standards on supportive and online module in higher education program. research revolution, 5(3), 6-12. 10. naim, a. (2018). strategies to achieve students’ centric approach in blended learning. international journal of engineering and management research (ijemr), 8(2), 214-219. 11. hussain, m. r., naim, a., & khaleel, m. a. (2020). implementation of wireless sensor network using virtual machine (vm) for insect monitoring. innovations in electronics and communication engineering: proceedings of the 8th iciece 2019, 107, 73. 12. hussain, m. r., quadri, n. n., ahmad, n., qamar, s., khan, n., naim, a., & hussain, m. e. (2019, april). effective cost optimization approach in healthcare to minimize the treatment cost of brain-tumor patients. in 2019 international conference on computer and information sciences (iccis) (pp. 1-5). ieee. 13. naim, a. (2021). green information technologies in business operations. periodica journal of modern philosophy, social sciences and humanities, 1, 36-49. 14. naim, a. (2021). applications of mis in building electronic relationship with customers: a case-based study. periodica journal of modern philosophy, social sciences and humanities, 1, 1-8. 15. naim, a. (2021). new trends in business process management: applications of green information technologies. british journal of environmental studies, 1(1), 12-23. 16. arshi naim, & mohammad faiz khan. (2021). measuring the psychological behavior of consumers for medical services. zien journal of social sciences and humanities, 2, 119– 131. retrieved from http://zienjournals.com/index.php/zjssh/article/view/316 17. naim, a. (2021). applications of marketing framework in business practices. journal of marketing and emerging economics, 1(6), 55-70. 18. naim, a. . . (2021). green business process management. international journal of innovative analyses and emerging technology, 1(6), 125–134. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/651 http://zienjournals.com/index.php/zjssh/article/view/316 http://openaccessjournals.eu/index.php/ijiaet/article/view/651 american journal of business management, economics and banking volume 1, june, 2022 p a g e | 11 www.americanjournal.org 19. naim, a. (2021). applications of mis in building electronic relationship with customers: a case-based study. periodica journal of modern philosophy, social sciences and humanities, 1, 1-8. 20. naim, a., & alqahtani, k. (2021). role of information systems in customer relationship management. pulse, 2(2). 21. bashir, m. a., & naim, a. ict adoption analysis for innovation in higher education sector. 22. naim, a. . (2022). neuromarketing techniques for proposing information driven framework for decision making. international journal of innovative analyses and emerging technology, 2(2), 87–94. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 23. naim, a. . (2022). neuromarketing techniques for proposing information driven framework for decision making. international journal of innovative analyses and emerging technology, 2(2), 87–94. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 24. naim, a. . (2022). economies of scale for antenna’s applications in interior regions. international journal of innovative analyses and emerging technology, 2(2), 77–82. retrieved from http://openaccessjournals.eu/index.php/ijiaet/article/view/1058 25. arshi naim. (2021). applications of e-learning tools for achieving students learning outcomes. journal of pedagogical inventions and practices, 2(2), 75–82. retrieved from https://zienjournals.com/index.php/jpip/article/view/320. http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 http://openaccessjournals.eu/index.php/ijiaet/article/view/1060 http://openaccessjournals.eu/index.php/ijiaet/article/view/1058 https://zienjournals.com/index.php/jpip/article/view/320 american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 121 www.americanjournal.org the possibility of applying the six sigma technique in the accounting units at the university of samarra / an analytical study of the opinions of a sample of accountants and auditors mustafa mohammed hussein college of administration and economics, university of samarra, samarra, iraq. email: mustafa.moha20@uosamarra.edu.iq a b s t r a c t k e y w o r d s the research aimed to test the possibility of applying the six sigma methodology in the accounting units operating at the university of samarra and to address the opinions of accountants and auditors in the accounting units, and (35) a questionnaire was distributed, and (29) answers were obtained, and the research relied on the descriptive analysis method in analyzing the opinions workers in accounting units, and reached the possibility of applying the six sigma methodology at the university of samarra to provide the requirements for its application, and recommended the need to raise awareness of the importance of modern administrative methods, especially the six sigma methodology that serves the work of organizations, whether private or public, because of the return it achieves on the level of the overall performance of the organization. six sigma, application requirements, university of samarra. the accelerated development of management and technical concepts in the contemporary business environment of industrial and service companies has led to the search for appropriate means, methods, and strategies that help them achieve the goals of achieving customer satisfaction and reducing the number of defective units, reducing the cost of operating operations, providing services and goods with the least effort and the highest quality promptly, and optimizing the use of the resources available to the organization. (hasson, 2011:1) the emergence of the six sigma methodology was one such method for service organizations to achieve operational excellence, reduce costs and implement quality standards (yanamandra, r., & alzoubi, 2022:122), is a three-part conceptual compound that represents a statistical measure of activity performance, a management system to achieve a high level of leadership, and a systematic methodology to improve processes (al-rawi, 2011, 3) universities are institutions that provide services to a broad segment of society and have a direct or indirect impact on society. they, therefore, require these institutions to use modern administrative means that achieve quality and help them to achieve imposed global standards. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 122 www.americanjournal.org search problem accounting units in universities seek to provide quality and error-free services, leading some of them to adopt modern methods and methodologies such as the hexagonal neutralization methodology (six sigma), as this methodology identifies, analyses, and measures problems in organizations' working procedures to reach a level of quality close to perfection as it sets the level of quality at a level (99.99966%) the researcher, therefore, considers that the problem of research is to answer the following questions: 1. are the requirements for applying the six sigma approach available in the accounting units operating at samarra university? 2. can the six sigma methodology be applied in the accounting units operating at the university of samarra? the importance of research the importance of research, in theory, is reflected in the light of the six-party neutrality methodology and its requirements, as it is one of the means of achieving quality in service and production units. in practice, accounting units at samarra university must take a field to know the applicability of the sixparty neutrality approach in their accounting units. research objectives search objectives can be summarized in the following points: 1. describe the theoretical framework of the six sigma approach in terms of its concept of significance and stages of application. 2. measuring the level of hexagonal neutrality in the accounting units operating at samarra university. identification of accounting unit workers from accountants and auditors of the hexagonal neutralization methodology. identification and diagnosis of requirements for the application of the six sigma methodology in the accounting units in question. research hypotheses the research is based on two hypotheses: 1. the six sigma application requirements are not available in the accounting units operating at samarra university. 2. the six sigma methodology cannot be applied in the accounting units operating at samarra university. research curriculum the unit search was based on two basic scientific research curricula, the inductive and analytical approaches to scientific books, scientific journals, university letters, articles, and research from arab and foreign websites or to root out its concepts and themes and build its theoretical aspect, the analytical curriculum will also be used to explore the answers of individuals working in accounting units at the university of samarra to comprehensively identify and analyze all aspects of the problem and identifying ways of addressing it and answering its questions exchanged through the unit's research sample. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 123 www.americanjournal.org community and sample research the research community consists of accountants and auditors working in accounting units at samarra university. search form the research model can be shown in the following format: figure 1: research plan sources of information and methods of data collection theoretical aspect: the researcher relied on what arabic and foreign references and literature are available from dissertations, letters, periodicals, seminars, websites and others. 2. applied aspect: through a four-axis questionnaire, which is the primary tool used to collect data with the aim of analyzing it and reaching research objectives. six sigma application requirements support and commitment of senior management continuous improveme nt necessary human resources measurement and feedback processes and information systems available not available applicable six sigma work to eliminate obstacles. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 124 www.americanjournal.org search limits spatial limits: the research was limited to accountants and auditors in accounting units at university of samarra. time limits: the time limit for 2021 has been set. previous studies 1study (hasson, 2011), a master's course entitled "evaluation of the accounting science system for the adoption of the 6-sigma method/applied study at the general company for pharmaceutical and medical supplies/samarra. the study aimed at evaluating the accounting information system in the general pharmaceutical industry company and demonstrating the feasibility of applying its six-party neutralization approach the study found that the accounting system adopted by the state company for pharmaceutical and medical supplies/samarra is unable to meet the needs of the application of the 6-sigma method, the company's cost accounting information system also falls short by all standards of providing minimal information that serves application procedures, although it is a significant basis for ensuring the success of this process. 2study (al-nadther, 2017), a master's course entitled "the feasibility of applying the six six sigma curriculum to food manufacturers in the west bank" the study aimed at identifying the feasibility of applying the hexa-fluorosis approach in food manufacturing companies, and tried to identify the obstacles to applying this approach. the company addressed nine food manufacturing companies and used two tools to collect the study's data, namely interviews and questionnaires, which included (180) a staff member retrieved (170) an analytical identification and found that the hexa-fluorosis methodology could be applied in food manufacturing companies, recommending that it should be applied because of its importance in enhancing product quality. 3study (muqabalah, 2021), entitled "the degree of availability of requirements for the application of six sigma at taif university from the point of view of faculty members" the research aimed at identifying the bike availability of the requirements of the application of the six-sigma curriculum at taif university by the faculty's point of view. the research examined a sample of 225 members, adopted a questionnaire form in the collection of information consisting of five axes, and concluded that the degree of availability of the requirements of the application of the six-sigma was medium. 4study (salman, abdullah, 2022), the objective of the research was to diagnose the reality of the six-party neutralization approach in the provision of high-quality products in industrial companies. the research examined the opinion of a sample of management leaders of 100 individuals distributed. on the questionnaire form, the research focused on diagnosing the reality of production and applying some of the forms and models on which this methodology depends, and the researchers concluded that the company can address and reduce the defect through a series of training and application steps. 5study (salaheldin & etal, 2009), six sigma practices in the banking sector in qatar the study aimed to test the application of six bills in the banking sector in qatar, by identifying the expected benefits of their application. the study relied on a questionnaire form distributed american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 125 www.americanjournal.org to a sample of 150 managers from different administrative levels, and found a compatibility between the different managerial levels and the awareness and perception of the six-sigma approach. 6study (khalaf, 2020), a master's course entitled: the extent of application of six sigma methodology in iraqi pharmaceutical companies a case study: the general company for the manufacture of medicines and medical supplies / samara. the study aimed to determine the applicability of the six-party neutralization approach in pharmaceutical companies by investigating workers' awareness of the hexagonal neutralization approach, identifying obstacles and working to remove and ensure the availability of application requirements, the data collection study was based on a questionnaire form distributed to the pharmaceutical industry in samarra and relied on the analytical and descriptive curriculum and found a range of factors to support the application of this methodology. 7study (yanamandra, r., & alzoubi, 2022), entitled: empirical investigation of mediating role of six sigma approach in rationalizing the coq in service organizations the research aimed to verify the role of the six sigma methodology in reducing quality costs in uae service sector companies. the research relied on field survey using a questionnaire form distributed to a sample of 120. the research found an important role for the six sigma methodology in reducing quality costs and rationalizing decisions. six sigma style concept the 6-sigma technique was not born for the moment, as motorola is one of the first companies to develop the 6-sigma methodology in a year (1979), when executive director arth cindery announced during a board meeting that the real problem in the company was the non-development of quality, that announcement had the effect of the beginning of a new age in the company linking the highest quality in production to the lowest cost quality ". although the belief among american companies in that period that achieving quality needed a lot of cost and time, but motorola achieved the principle of quality with cost reduction, and has already proved that high quality products should be produced at a lower cost, and the label of this method came (6 sigma) through bill simth who worked in the motorola communications department, sought to achieve the ultimate quality of the product, focusing on the extent to which it was capable of reducing the imbalance. (defects) as an important catalyst for the application of this method, as well as the support of the company's senior management, as well as the technical role of the employees, have helped the application process. six sigma has been seen as a strategic methodology that will achieve the ultimate goal of improving quality by reducing defects to a level near zero (hasson, 2011, 12), known as a strategic initiative to raise profitability, increase market share and work to satisfy the customer through a set of statistical tools that can lead to gains in providing products or services in bulk and high quality park, 2003:1) and defined as a structured approach to improving products and services by identifying and reducing customer defects to near zero (al-najjar, 2007:310) six sigma is also defined as a method and process of improving the company's strategy through the use of a model (dmaic) is the abbreviation of the five specialized steps in the 6 sigma methodology and represents the identification of the problem define, measure, analyze, improve and control. this american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 126 www.americanjournal.org method is used to regulate the philosophy of 6 sigma and is not limited to the functioning of a particular sector. (hasson, 2011:12), known as an organizational management concept that is closely linked to the organization's main functions, provides managers with a range of tools that enable them to achieve customer satisfaction by focusing on productive processes and relying on facts to reduce deviation and bring defects to a near-zero level (abdullah, 2013, 354), sesma's concept is greek and means deviation in statistical science. it is an indicator of normative deviation, variability or dispersion of a group of elements, and it is accompanied by the number (6) precisely because it is the name of the method and style of quality and excellence, since at the level of six sigma we have a level of accuracy that may reach (99.9996%) i.e. at an almost expensive level of defects, it is a philosophy that considers that any processing processes, whether service or productive, consist of influential, important and important inputs and outputs and that such inputs have a direct impact on outputs. therefore, the outputs cannot be adjusted until the inputs are adjusted (izzat, 2017:8). importance of six sigma sigma style 6 offers a range of advantages for companies that use it and can be shown in palatine (suleiman and abdullah, 2022:351): reduce the time of the organization's commodity production cycle. 2directing workers towards the performance of work is correct from the first time and adopts this as a general culture of the organization. 3. achieve customer and employee satisfaction. maximize returns by rationalizing resource utilization. 5. contribute to maximizing profits by updating products and continuously improving them. 6reduce the cost of quality failure through continuous improvement and measurement of products and services. goals of six sigma six sigma's primary goal is to improve operational performance, as the organization attempts to achieve three achievements: (improve customer satisfaction, reduce cost, increase income and then increase profits) note that achieving customer satisfaction comes first, positively affecting market share and income growth, as a result of income growth and cost decrease to increase profit, and achieving this goal combined with management's commitment to improve and adhere to methodology (dmaic&dfss) and other improvement projects developed across the organization. this approach is in line with the orientation of the strategies of modern organizations in terms of giving the customer priority in the goals. achieving customer satisfaction successively achieves the rest of the organization's objectives in terms of increasing market share, winning new customers, achieving customer loyalty and sales growth. based on the foregoing, its objectives can be described as follows (hasson, 2011:18): american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 127 www.americanjournal.org customer satisfaction cost reduction increased income increased profits and market share figure 2: main objectives of six sigma six sigma style application stages six sigma's application methodology is based on five stages using the damic approach (ahmed, 2010:101): 1identification of the problem (define): in this step, the manager and team leaders describe the problem and its dimension and its impact on the satisfaction of customers, employees and profitability. during this phase, (necessary worker requirements, objectives of the organization, responsibilities and powers of each department, organization resources, operational maps) and important technology used during this stage (fish bone). 2measurement: during this stage, information is collected, and the size of the problem is assessed. real figures and data are extracted, i.e., measurement of defects associated with the production process. all activities and tasks that contribute to the transformation of inputs into outputs. measurement will be based on three parts (inputs, processes, outputs). 3analysis: at this stage, defects affecting the productive process are identified, sought to understand, and determine their roots in such a way as to leave room for bias and shape through the use of a set of methods such as barreto maps, repetitive terraces, correlation and regression. 4improvement: at this stage, activities that help to improve performance and raise the organization's level among its peers are identified through scientific tools to find possible solutions to remove the problem. improvement is done through a series of steps (process description and division into processes, extent to which measurement tools change, data collection and analysis, identification of variability components, identification of critical variables, optimization of the process). 5control: the processes that have been improved are followed up and the six sigma method is maintained. during this phase, a range of tools such as operating rotate maps, pre-control maps are used. the main objective of this phase is to reduce variability by controlling inputs and outputs. adherence to methodology dmaic & dfss other improvement projects american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 128 www.americanjournal.org six sigma structure shows (khalaf,2020) how team leaders are central to the hexagonal neutralization technique team leaders and the team are required to implement the hexagonal neutralization technique, the six sigma organizational structure describes as a hierarchy of staff and management roles relying on different levels of experience such as a hero black main belt, black belts, green belts, white or yellow belts and these belts are provided by consulting firms based on the level of efficiency in understanding and application related tools and the number of six sigma projects completed as an individual or as part of the team and the total training hours spent, the role of each official is determined at the team or department level as follows (khalaf,2020: 10): 1champion: high-level executives who design and oversee six sigma and commit to its success, six sigma is used in day-to-day operations and there must be at least one per organization (some major companies have one for each division organization), it is key to the integration of successful businesses by controlling strategic tools and their condition to make six sigma suitable for strategic plans. 2master black belt: the six sigma program is responsible for providing technical leadership, so it must be familiar with the mathematical tools and techniques on which statistical methods depend, guide black belts and provide strategic support in implementation. methods correctly in unfamiliar situations as well as in common situations. 3.black belt: described as the front line leader who trained in the application of six sigma tools and is responsible for the training of green belts, a full-time role with the ability to communicate effectively at all levels. 4green belt: previously defined as staff trained in focusing on problem solving and identifying areas of improvement as well as training project team members in collecting and analysing metadata but with low emphasis on advanced statistical methods to be followed by main black or black belts moreover, 10-15% of their time can be spent on their project. 5-white or yellow belt: is an entry level for six sigma which will be supported by black and green belts in the implementation of complex projects. six sigma style application requirements different experiences of applying six sigma methodology have shown that it needs a set of different requirements and has been defined (sara, et al., 2017:5) as follows: 1support and commitment of senior management: in order to be successful, the organization must be managed as well. management requires a sense and vision to define goals and decisions through coordinated actions consistent with characteristics, values and outlook. the commitment of senior management to apply this methodology and obtain a team capable of meeting the company's requirements. thus, the development starts from the highest pyramid to the lowest level. 2continuous improvement: the hexagonal neutralization methodology relies heavily on continuous improvement up to a level free of defects. continuous improvement is a process that encompasses all productive activities along the product or service cost cycle, and thus seeks to improve quality and increase productivity. 3education and training: in order to apply the six-party neutralization methodology properly, the team must be taught how to use this methodology, methods and tools, through the organization periodically preparing training courses on the concept of this system how to apply american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 129 www.americanjournal.org it to avoid failure during application. education and training are one of the basics of building the intellectual capital of the organization. 4workers' participation: empowering workers at lower management and executive levels in the decision-making process and making it by making their opinions and making suggestions about a particular problem that may confront them during work, or presenting a new idea. 5customers: the customer is the focus and driving force of the organization's work therefore, the organization seeking to apply the six-party neutralization methodology must develop a clear and comprehensive purity in order to reach its message of the importance of applying this approach to all of the organization's employees, customer satisfaction is the first goal of applying the hexagonal neutralization methodology and then hails from it the rest of the goals as the customer is the focus of the organization's success in the competition market. practical aspect this research highlights the description and diagnosis of research variables and the validation of their assumptions, as well as the procedures that have been undertaken in the rationing and application of research variables and statistical treatments in which the research and test results of its assumptions have been analyzed. research curriculum current research has taken the analytical descriptive approach by identifying the applicability of six sigma in samarra university's computational units, where the analytical descriptive approach tries to evaluate, interpret and compare in order to arrive at generalizations that increase knowledge about the subject. community and sample research the study community consists of accountants, people's directors, departments and hosts in the computational units of samarra university, where the distribution was made (35) the number of spheres not recovered (6). the response rate was 82.8%. after verifying the recovered questionnaires, none were excluded to meet the required requirements. (29) identification of which represents the same response rate. the distribution of search sample personnel by personal information is as follows: distribution of research sample personnel by scientific qualification the results shown in table 1 show that more than half of the research sample has a scientific qualification (bcl) (52%) followed by a master's degree (28%), while the proportion of those holding a diploma (17%) and a preparatory degree (3%). this is evidence that the majority of researchers have scientific qualifications that enable them to understand the questions of aspiration and answer them. table 1: distribution of sample personnel by scientific qualification no educational qualifications percentage 1 enumeration 3% 5 diploma 17% 15 bachelor's degree 28% 8 master's degree 52% american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 130 www.americanjournal.org distribution of research sample personnel by job specialization the results shown in table 2 show that 7% of the individuals in the search sample have their job position as department manager, while 31% and 21% are division and unit officials, respectively, and 41% are employees. table 2: distribution of sample by functional specialty no job position percentage 2 director of department 7% 9 division officer 31% 6 unit officer 21% 12 staff member 41% it is clear from the above that there is a variety of job positions in the search sample. this result is suitable due to the functionality of the computational units. this assures the researcher that the answers to the resolution can be relied upon because it is of high accuracy and credibility. distribution of research sample personnel by job experience the results shown in table (3) show that the highest percentage of the research sample have 10-6 years' functional experience, followed by 5-1 years' career experience and 31%, while 15-11 year-olds accounted for 14%. employees with more than 16 years of experience are 3% this reflects the ability to absorb and learn quickly for modern quality programs such as hexagonal diffraction. study tool in the context of the research problem, hypotheses and vocabulary of the research community, the researcher selected the appropriate tool to collect his data. the researcher developed the study tool by reviewing previous literature, periodicals and studies relevant to the research topic. the researcher designed a special questionnaire on "the applicability of six sigma in the accounting units of samarra university/analytical study of sample opinions from this identification consists of two sections: section 1: personal information of the respondent (scientific qualification, career specialization, career experience). section 2: expresses the requirements to be met for the application of the hexafluorosis approach (administrative requirements, human requirements, technical requirements, physical requirements) and as in table (3), which shows the sections and preparation of phrases used to measure study variables. table 3: research variables research variables phrases no section 1: personal information 3 section ii: study requirements: first variable: administrative requirements 5 variable ii: human requirements 5 variable iii: technical requirements 5 variable iv: material requirements 5 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 131 www.americanjournal.org this section is answered using a five-category quinquennial scale (strongly disagree, disagree, neutral, agree, strongly agree). the tool included 20 questions covering the research aspects of the four requirements: first variable: administrative requirements phrase 1 "senior management has a constant interest in process development and success measurement." phrase 2 "senior management has a high interest in quality policy." phrase 3 "senior management has a willingness to adopt and use modern methods of quality." phrase 4 "senior management is prepared to remove obstacles to the adoption and application of hexafluorosis." phrase 5 "senior management accepts and adopts proposals from feedback." second variable: financial requirements phrase 6 "the computational units have the financial support to design, adopt and develop the hexafluorosis methodology." phrase 7 "units of account have financial support to train staff at different levels of hexagonal diffraction." phrase 8 "units of account have the financial support to procure hef methodology programs." phrase 9 "the computing units have the financial support to recruit external trainers to train staff." phrase 10 "the accounting units have the financial support to grant financial incentives to the hexagonal neutralization team when they reach the required targets." third variable: human requirements phrase 11 "the computational units have the human resources trained and qualified to apply quality programs and methodologies." phrase 12 "the department of computing units has a willingness to persuade and oblige staff to adopt the hexa-fluorosis methodology." phrase 13 "senior management has the capacity to engage experts to assist in the application of hexafluorosis." phrase 14 "senior management has a willingness to engage staff in training courses in the hexafluorosis curriculum." phrase 15 "senior management engages staff in continuous improvement and quality activities." variable iv: technical requirements phrase 16 "computational information system enables application of quality and continuous improvement programs and methodologies." phrase 17: "the calculation units document their entire operations and can measure errors in these operations." phrase 18: "computing units work continuously by providing information to different departments for control and quality measurement." american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 132 www.americanjournal.org phrase 19 "computational units have an information system that allows for measurement, analysis and evaluation of performance." phrase 20 "computational units have modern tools, software and techniques to use for staff training." statistical methods used in this study this section examines whether or not the main requirements for the implementation of the six sigma methodology in the university's computational units are available through 20 phrases and measured by a five-point pentagon scale (1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree and 5 = strongly agree) the researcher discharged and analyzed the questionnaire by the statistical package for social sciences spss to identify responses to research variables by finding the quantitative average value and standard deviation of each phrase. the results and analysis of the research axes and hypotheses were as follows: first variable: administrative requirements the results of the statistical analysis show in table no. (4) that the response of the individuals researched about the axis of administrative requirements located within the questions between (s1x.5), was in the direction of the agreement with an average account (3.8) and with a standard deviation (0.82), indicating that the degree to which senior management can support the application of the six sigma methodology is high (75%) of the responses of the researchers in the unit sample research, which indicates that the top management of the research organization seeks to apply modern management techniques to enhance quality if the requirements for their application are met. table 4: administrative requirements test results no. i d o n 't a g re e v er y s tr o n g ly i d o n 't a g re e im p a rt ia l a g re e a g re e s tr o n g ly a ri th m et ic m ea n s ta n d a rd d ev ia ti o n q1 0 2 3 18 6 3.97 0.778 q2 0 1 4 19 5 3.95 0.68 q3 0 1 4 19 5 3.99 0.68 q4 1 4 9 11 4 3.44 1.02 q5 0 5 4 15 5 3.68 0.967 overall average 3.8 0.82 second variable: financial requirements table 5 shows that the results of the statistical indication of the responses of sample individuals to the availability of financial requirements were towards the availability of financial resources, the rate of responses varied within the range (3.5 4.01), with the average calculation of the direction of answers within the quinquennial measure of resolution (3.84) or approximately (77%) of the answers and this is a relatively good rating. this explains the agreement of the individuals of the sample on the availability of financial possibilities at the research university if it wants to use modern management techniques to improve quality and develop performance. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 133 www.americanjournal.org table 5: second variable financial requirement test results no. i d o n 't a g re e v er y s tr o n g ly i d o n 't a g re e im p a rt ia l a g re e a g re e s tr o n g ly a ri th m et ic m ea n s ta n d a rd d ev ia ti o n q6 1 6 9 10 3 3.79 1.11 q7 1 7 7 9 4 3.89 0.94 q8 0 15 7 5 2 4.10 1.02 q9 3 12 7 6 1 3.93 0.68 q10 2 3 8 15 1 3.51 0.80 overall average 3.84 0.91 third variable: human requirements note from table 6 that the results of statistical analysis of the responses of sample individuals on the availability of human requirements that constitute the questions between (s15-s19), was high at a general average of 3.84, while the standard deviation was (0.94) indicating that the degree of availability of human resources for the application of the hexagonal neutralization methodology is high, and these results are consistent with the study (hamida, 2013) and (rao & m. l, 2014), while disagreeing with the study of both (qisas, 2014) and (al-ghamdi, 2015). table 6: results of statistical analysis of human resources requirements no. i d o n 't a g re e v er y s tr o n g ly i d o n 't a g re e im p a rt ia l a g re e a g re e s tr o n g ly a ri th m et ic m ea n s ta n d a rd d ev ia ti o n q11 2 7 5 13 2 3.97 0.861 q12 1 4 5 17 2 3.93 0.976 q13 2 2 7 15 3 3.44 0.817 q14 0 2 5 20 2 3.68 1.066 q15 0 2 6 16 5 3.51 1.021 overall average 3.84 0.948 variable iv: technical requirements the results of the statistical analysis show in table no. (7) that the response of the individuals researched about the axis of the technical requirements falling within the questions between (s16x20), was in the direction of the agreement with an average account (3.86) and with a standard deviation (0.93), indicating that the degree of availability of technical requirements for the application of the six sigma methodology is high as it exceeds the ratio (78%) of the responses of researchers in the unit sample research, which shows that the top management of the research organization possesses modern technical requirements that provide good infrastructure for the application of management techniques that enhance quality. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 134 www.americanjournal.org table 7: results of statistical analysis of technical requirements no. i d o n 't a g re e v er y s tr o n g ly i d o n 't a g re e im p a rt ia l a g re e a g re e s tr o n g ly a ri th m et ic m ea n s ta n d a rd d ev ia ti o n q16 0 3 5 16 5 3.79 0.861 q17 2 1 0 21 5 3.86 0.976 q18 1 0 2 18 8 4.10 0.817 q19 1 3 2 14 9 3.93 1.066 q20 1 5 4 16 3 3.51 1.021 overall average 3.85 0.928 conclusions 1the six sigma methodology is one of the modern means to improve quality, by achieving customer satisfaction, reducing costs, and reducing errors to reach a level of quality near perfection, reflecting on the (maximize) profits well. this requires supporting and assigning senior management and fostering a spirit of collaboration among employees with a view to achieving goals in the shortest time and least cost, drawing on a range of statistical and mathematical tools for analysis with a view to improving work. 2the possibility of applying the six sigma methodology in industrial and service enterprises. 3the university's computational units found the research sample to operate at the level of (4%) sigma. this level of error is high, which means that the six sigma methodology should be applied to reduce errors. 4availability of requirements for the application of the six sigma methodology in the accounting units of the university sample research, since the responses of individuals towards approval at a rate of approximately (78%) for all administrative, financial, human, and technical requirements. recommendations 1emphasize and disseminate a culture of learning with a view to increasing and renewing knowledge among the organization's cadres, to keep abreast of developments in the global environment, through participation in local, regional and global seminars and conferences on the advancement of the work and management of companies. 2the need to raise awareness of the importance of modern administrative methods, in particular the six sigma methodology, which serves the work of both private and public organizations, because of the return on the overall performance of the organization. 3the need to apply the six sigma methodology in the accounting units of the university sample research, with the aim of improving performance and reducing the level of defects to a level near zero and providing services of higher quality and less time. references 1. hassoun, laith noman, (2011), evaluating the accounting information system to adopt the six sigma method, master's thesis in accounting, college of administration and economics, university of tikrit. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 135 www.americanjournal.org 2. hamida, ali, ali, (2013), the availability of six sigma entrance application requirements and the expected role in reducing costs and quality in industrial companies, an applied study on industrial companies operating in the gaza strip, an unpublished master's thesis, middle east university. 3. al-rawi, sina ahmed abdel-ghafour, (2011), using the six sigma approach to control the quality of internal auditing, a field study on private hospitals that won an award for quality and excellence in amman governorate, master's thesis in accounting, college of business, middle east university, amman. 4. al-ghamdi, mouda bint jamaan, (2015), the reality of the elements of the success of applying six sigma to develop administrative performance in saudi universities from the point of view of academic administrative leaders, an unpublished doctoral thesis, the islamic university of gaza. 5. al-qassas, ahmed khaled, (2014), using the six sigma method in rationalizing investment decision-making, an applied study on palestinian commercial banks, unpublished master's thesis, the islamic university of gaza. 6. mohamed ahmed amin ahmed, (2010), using six sigma method variables as an introduction to improving health service quality: a comparative study between university and private hospitals in cairo governorate, master's thesis in business administration, faculty of commerce, mansoura university, arab republic of egypt. 7. al-nazer, samiha samih abdel-raouf, (2017), the extent to which the six sigma approach can be applied in major food manufacturing companies in the west bank, mba thesis, college of graduate studies, hebron university, palestine. 8. suleiman, nidal ali, abdullah, adel muhammad, (2022), priorities for the application of training programs for six-sigma belts methodology (six sigma), an analytical study of a sample of administrative leaders in the light industries company, ishtar, business economics journal of applied research, volume (3), issue (2). 9. abdullah, adel muhammad, (2013), the extent to which it is possible to adopt the hexagonal diffraction methodology in controlling the quality of required medicines according to the dmiac model, an analytical study in the general company for the industry of medicines and medical supplies in nineveh, anbar university journal of economic and administrative sciences, volume (5), issue (10), anbar university. 10. ezzat, hussein noureddine, (2017), the possibility of existing the six sigma requirements, an exploratory study on a sample of the technical college, kirkuk university journal of administrative and economic sciences, volume (7), issue (2), technical college, kirkuk. 11. interview, mansour ahmed, extent to which the requirements of applying six sigma are available at taif university from the point of view of faculty members, journal of educational sciences, volume (48), issue (3), taif university. 12. khalaf ahmed hamada, (2020), the extent of application of six sigma methodology in iraqi pharmaceutical companies a case study: the general company for the manufacture of medicines and medical supplies/ samara, thises the degree of msc project management, the university of salford – salford business. 13. park, sung h., (2003), six sigma for quality and productivity promotion, published by the asian productivity organization (apo), tokyo, japan. 14. salaheldin, s. i., & abdelwahab, i. s. (2009). six sigma practices in the banking sector in qatar. global business and management research: an international journal, 1(1), 23-35. 15. yanamandra, r., & alzoubi, h. m. (2022). empirical investigation of mediating role of six sigma approach in rationalizing the coq in service organizations. operations and supply chain management: an international journal, 15(1), 122-135. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 123 www.americanjournal.org organizing ecotourism in uzbekistan: problems and solutions jakhongir khayiti samarkand state architectural and civil engineering university a b s t r a c t k e y w o r d s the development of important factors of ecotourism in uzbekistan and the specifics of more efficient use of architectural and landscape factors are described. and also the features, factors of development and the socio-economic essence of ecotourism are studied. the state of development of tourism in uzbekistan, the potential and level, as well as the development of architectural and landscape mechanisms of ecotourism in the regions are analyzed. tourism industry, landscape, architecture, ecotourism, recreational tourism, modern models of ecotourism. introduction tourism is one of the fastest growing sectors of the global economy today. it reportedly contributes 9% to the global gross domestic product (gdp), provides one out of every 11 jobs in the world and 6% of global exports. according to experts' forecasts, by 2030 the number of international tourists may be about 2 billion people [8]. the ecotourism of the tourism industry in the world is the prevention of an ecological crisis in the face of humanity, it was formed and developed on the basis of finding ways to save the nature of the planet and its resources in the name of sustainable development and the survival of mankind. ecotourism is the only direction in the tourism industry that is interested in preserving the main resource the natural environment or its individual components (natural monuments, certain types of animals and plants, natural landscapes, etc.). it provides for environmentally responsible travel to undisturbed natural areas to explore and enjoy nature and cultural attractions, which contributes to the protection of nature, has a mild environmental impact, ensures the active socio-economic participation of local residents and their benefits from this activity [2; 5; 9]. according to the world tourism organization, ecotourism is one of the fastest growing types of tourism in the world. the ecological crisis is growing globally, the incidence of infectious diseases is increasing, and people are increasingly focusing on their health, wanting to relax in clean conditions [4]. in this type of tourism, healthy people are more involved in tourism activities. they don't need any mandatory treatments to heal their health and are considering relaxing in an eco-friendly environment to restore their health. therefore, in the development of ecotourism, tourism specialists, entrepreneurs, tour operators and travel companies see more than one goal making a profit. currently, ecotourism is one of the fastest growing tourism industries, based on the world tourism and excursions guide american journal of business management, economics and banking volume 11 april, 2023 p a g e | 124 www.americanjournal.org and the world tourism organization, that is, the share of ecotourism in the global tourism industry ranges from 10 to 20%. its annual growth is 30%. also, until 2022, ecotourism will be one of the main strategic areas of world tourism, and these areas will also develop in the republic of uzbekistan [6; 7]. uzbekistan has a number of opportunities for the types of ecotourism. this should include a wide range of activities from long-term scientific expeditions to short-term outdoor recreation. the most common types of ecotourism are hiking and horseback riding, rowing and motor boat trips. this also includes hunting and fishing tourism, bird watching [1]. in view of the foregoing, it becomes obvious that the main obstacle to the development of eco-tourism is the misunderstanding of the concept of eco-tourism in its classical sense. it is believed that access to nature (any kind walking, horseback and automobile) is already ecological tourism, while forgetting about its main part acquaintance with wildlife, local customs and culture, the participation of local residents and relevant monetary contributions from tourism activities to local communities [3]. the main content of ecological tourism is: ✓ minimizing negative environmental and socio-cultural impacts; ✓ maintaining the environmental sustainability of the environment; ✓ raising the level of environmental education, culture and enlightenment; ✓ the participation of local residents and their receipt of income from tourism activities, which creates economic incentives for them to protect nature; ✓ economic efficiency and contribution to the sustainable development of the visited regions. important components of the further development of ecotourism in uzbekistan are the development and detailed descriptions of tourist routes and their official registration in the relevant structures responsible for the development of tourism [5]. in this regard, the resolutions of the president of the republic of uzbekistan "on priority measures for the development of the tourism industry", "development of tourism and related infrastructure in all regions of the republic of uzbekistan, diversification of tourist products and creation of new tourist facilities", as well as a program of priority measures for the development of tourism, which are aimed at the active promotion of national tourism products in the domestic and foreign markets [9]. when implementing this program, it is important to study the problems of ecotourism development in our country. in this direction, it is necessary, first of all, to study advanced technologies and the experience of foreign countries in the field of ecotourism. according to international experience, there are two models for the development of ecotourism: a national park and an international park. in the development of ecotourism, we should pay attention to the following principles of the national park model: ➢ low national park areas; ➢ 50% of national parks are owned by the private sector, 50% are state-owned; ➢ state policy provides that the national park will be developed at the expense of people; ➢ organization of health improvement of the population in the field of domestic tourism. in the development of ecotourism, the concept of the international park reserve model is fundamentally different: the financing of these national parks is not government support, but state support. the basic principle of these national parks is to rely on their own power and self-defence. this model was formed in the middle of the хх century and is widespread in developed countries. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 125 www.americanjournal.org access to the national park is very low. the most important factor in the nature reserve model is that europeans have a very high ecological awareness and ecological culture. in other words, many decades have passed since the europeans adopted the slogan "keep your house clean". international model of the park-reserve for the development of ecotourism: internal power; be from the local population serving the national park; distribution: 80% of national parks and 20% of revenues; the dominance of private property. uzbekistan is rich in resources and opportunities for ecotourism, and tour operators offer ecotours along the routes tashkent-charvak-tashkent, tashkent-baisaiskoy-chimyon-tashkent, tashkentzomin-tashkent, tashkent-aidar-kol-tashkent. camel rides in the desert regions not only of uzbekistan, but also of the whole world attract a lot of attention from tourists. according to the analysis, tour operators providing ecotourism services mainly operate within the chimgan-charvak recreation area. however, the remains of gissar, bobotog, kichitangtos (surkhandarya), charkar (kashkadarya), nurota (navoi-jizzakh), zarafshan (samarkand), turkestan (jizzakh), alai (fergana), kurama, chatkal (namangan), the kyzylkum desert are no less interesting, the dried bottom of the aral sea and salt lakes, the ustyurt plateau. work is to be done on the creation of complexes and thematic eco-tours to the tugai forests, to the muruntau deposit, the mingbulak depression, to the aydarkul and dengizkul lakes, the amudarya and syrdarya rivers. uzbekistan has its own charm and unique landscapes, beautiful caves. in this regard, speleotourism (tourism) has great potential. there are more than 700 travel agencies in the country, about 240 large and small hotels, a large number of tourist camps and campsites, many architectural and historical monuments, beautiful natural landscapes. statistics show that 41% of tourists who come to uzbekistan come here to get to know the country. on the banks of the amu darya there are tugai forests, which are very interesting for ecotours. the badai-tugai nature reserve was created to protect birds and animals in the tugai forests on the right bank of the amudarya river. in addition, eco-tours are organized to the 485-meter mountain uvay, in the western part of kyzylkum, on the right bank of the amu darya (cambrian period). in the amudarya region, one of the oldest cities in uzbekistan is located in khorezm, and its architectural monuments are one of the historical tourist centers. ecotours can be combined with the study of historical landscapes. conclusions and recommendations • based on the goals and objectives set out in the "concept for the development of ecotourism in uzbekistan" and the requirements of the "modern concept and practice of international ecotourism", we need to start research on the development of organizational structures and mechanisms for the development of ecotourism in our country. • organization of trainings on ecotourism for ecotourism specialists under the guidance of the samarkand institute of economics and service. • we need to establish legal standards for the use of modern technologies and the experience of foreign countries with ecotourism in the organization and development of ecotourism in uzbekistan. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 126 www.americanjournal.org • we need to start the process of testing national models of ecotourism, created in cooperation with european countries, for the organization and development of ecotourism in uzbekistan, in the national parks of our country. references 1. александрова, а. ю. география туризма / ю. александрова. — м. : кнорус, 2010. — 592 с. 2. григорьянц, а. а. к вопросу развития экотуризма в узбекистане / а. а. григорьянц // экологическое движение узбекистана. — url: http://eco.uz/ru/ biblioteka/publikatsii-vsmi/7480-k-voprosu-razvitiya-ekoturizma-v-uzbekistane 3. дурович, а. маркетинговые исследования в туризме / а. дурович. — спб., 2008. — 382 с. 4. сафаров а. и., ризаев и. и. факторы развитие экотуризма в узбекистане //глобальные проблемы модернизации национальной экономики. – 2022. – с. 629-633. 5. квартальнов, в. а. теория и практика туризма / b. а. квартальнов. — м., 2003. — 660 с. 6. о дополнительных организационных мерах по созданию благоприятных условий для развития туристского потенциала республики узбекистан : указ президента республики узбекистан от 3 февраля 2018 г. № уп-5326. — url: http://www.uzembassy. kz/ru/article/omerah-po-razvitiyu-vezdnogo-turizma 7. о первоочередных мерах по развитию сферы туризма на 2018-2019 годы : постановление президента республики узбекистан № пп-3217 от 16.08.2017. — url: http://www.lex.uz/docs/3311821 8. мардонов, р. с. проблемы в инновационном развитии (на примере узбекистана) / р. с. мардонов, и. и. ризаев // географические и экономические исследования в контексте устойчивого развития государства и региона : материалы iv международной научнопрактической конференции в 2-х томах, донецк, 10–11 ноября 2022 года / под общей редакцией е. г. кошелевой. том 1. – донецк: донецкий национальный университет, 2022. – с. 244-246. 9. ганиев к., тугунбоев о., ризаев и. и. экологические проблемы современного общества и ихрешения //наука и образование: актуальные вопросы теории и практики. – 2021. – с. 601603. 10. сафаров а. и., ризаев и. и. зеленое строительство: преимущества и недостатки //зеленая экономика: курс на устойчивое развитие в современных условиях. – 2022. – с. 416-421. 11. xaqqulov n. q. perfect generation-personality of private education and humanity facilities //мировая наука. – 2019. – №. 2. – с. 62-63. 12. сафаров а. и., ризаев и. и. возможности и перспективы экотуризма в узбекистане //экономика и управление гостеприимством территории. – 2021. – с. 123-127. american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 1 www.americanjournal.org role artificial intelligence in reducing product costs agricultural "applied study in the national program for the development of wheat cultivation in iraq ass. pro . dr. mohammed abdelwahid flayyih accounting department , college of administration and economics. iraqi university. baghdad , iraq mohammed.hilf@aliraqia.edu.iq ass.tea. hadeel ahmed badr (2) accounting department , college of administration and economics, al farahidi university.baghdad, iraq hadel199494@gmail.com ass . tea . shaymaa majeed saeed (3) accounting department , college of administration and economics, al farahidi university.baghdad, iraq shaimaa.majeed79@gmail.com a b s t r a c t k e y w o r d s the aim of the research is to identify contemporary technologies and their use in the agricultural sector, as it is a vital and important sector. as artificial intelligence techniques have been used to reduce the costs of the agricultural product represented by the cost of direct wages, as the reliance on traditional methods of cultivation and production leads to higher costs and crop production of low quality . the researchers relied on the inductive and deductive approach to enhance the theoretical aspect, while the practical aspect the researchers relied on analyzing the data obtained from the national program for the development of wheat cultivation in iraq, and the researchers concluded that artificial intelligence has a major role in reducing the costs of the agricultural product represented by the costs of direct wages, which is reflected in the result in reducing costs. artificial intelligence, reducing agricultural product costs. mailto:mohammed.hilf@aliraqia.edu.iq mailto:hadel199494@gmail.com mailto:shaimaa.majeed79@gmail.com american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 2 www.americanjournal.org 1.introduction: the rapid qualitative development brought about by the technological revolution, especially with the twentieth century in the field of information technologies, led to the emergence of new applications and programs characterized by diversity and continuous innovation, which intensified competition between companies on the global market level. recently, applications havecontemporarytechnology or information technology using the most prominent applicationscontemporaryinformation systems, which is the intelligence ofartificialas the applications of intelligence areartificialimportantein many fields and fields, for companies, it is an indispensable necessity.somany studies and research have confirmed the importance of these applications ineconomic unitsthis is not because it can achieve several advantages, most notably: improving the decision-making process, solving all administrative problems, as well as reducing costs, improving quality and other advantages that directly contribute to enhancing the competitiveness of the businesseconomic unitsensuring its survival and growth. 2.view the literature the literature related to the research variables was revieweda number of research articles were identified due to their importance and contribution to the study of research variables at an earlier time. in the following table, we review some of these studies table (1) presents the literature related to the research variables t researcher's name and year study title its results 1 (shanawa and al bakri, 2018) the role of artificial intelligence in achieving customer satisfaction and its reflection on cost accounting thatartificial intelligence helps in achieving customer satisfaction by quickly responding to changes in customer tastes, and then enables the economic unit to increase its market share and grow its sales. 2 hamed,2019 reducing production costs using the agile hexagonal diffraction input the application of the graceful hexagonal diffraction input contributes to meeting the requirements of customers by reducing production costs and delivering the product on time. 3 (nasr al-din and ibn daql, 2020) the role of artificial intelligence in the product planning process in a telecom companyooredooalgeria artificial intelligence helps analyze data using various analysis applications by giving information about the type of current customers, their desires, potential customers, their geographical distribution, and what products can be marketed in one region without the other. source: prepared by the researcher based on the above sources 3. artificial intelligence 1.3the concept of artificial intelligence intelligence is made up ofartificialfrom two words: intelligence and the wordartificialand each of them has a meaning, where intelligence is defined as the ability to understand new and changing circumstances and situations, that is, the ability to perceive, understand and learn new situations and circumstances.artificialit is actually related to making or simulating andthenthis word is given to the american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 3 www.americanjournal.org things that arise as a result of the activity or action that takes place through the fabrication of things, as distinct from the things that actually exist naturally without human intervention (khawalid).11: 2019 , )(ismail, 2021: 1083). on this basis, artificial intelligence means in general the intelligence that a person makes or creates in a machine or a computer, the intelligence that comes from a person in the original and then gives it to a machine or a computer. ottoman, 2019: 11-12). and the term intelligenceartificialit was first coined by (john mccarty) in 1956 when the first academy held a conference on this subject. and that the important thing is to know whether intelligence isartificialscience or art, in fact, intelligence isartificialit is a science and an art at the same time, as it is a science because it developed intelligent computer systems by employing mathematical principles, as well as the ability to solve difficult problems in several fields, and it is an art because it works on the basis of the idea of designing intelligence systems that are done by employing technical methods for programming, andthenthe data stored in all the information can be manipulated by computer science techniques, soaartificial intelligence is a science.and art.at same time (smith, et. al, 2006 : 4) (nath, 2009: 28) (al bakri 6: 2010, ). intelligence is knownartificialon he:  it is a specific language that is translated by humans, which enables the machine to perform intelligent actions that are done by humans.  science and technology based on other branches of science such as computers, engineering, mathematics, psychology, medicine and biology  an attempt to build machines that think and act like humans so that they are able to learn and use their knowledge to solve problems on their own (al-hamdani, al-bakri2011 261 :). he also knows the intelligenceartificialit is the field that seeks to understand the nature of human intelligence by creating programs on computers that intelligently imitate actions, actions or behaviors (al-obaidi).44: 2013, ). and know himdan.patterson“it is a kind of computer science that is concerned with the study and formation of computer systems that show some forms of intelligence, and these systems have the ability to draw very useful conclusions about the problem in question, and these systems can also understand natural languages or understand living cognition and other capabilities that require intelligence whenever needed. implemented by man (hajira, 2018: 81). 2.3 . types of artificial intelligence there are three types of artificial intelligence, which are as follows (khawalid155: 2019 , ): 1narrow or weak artificial intelligence: it is the simplest type of artificial intelligence, where artificial intelligence is programmed to perform certain functions within a specific environment.ibm) and defeated garry kasparov, the world chess champion. 2strong or general artificial intelligence: this type is characterized by the ability to collect and analyze information and benefit from the process of accumulating experience, which qualifies it to make independent and autonomous decisions, such as self-driving cars. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 4 www.americanjournal.org 3super artificial intelligence: they are models that are still under experiment and seek to simulate humans, and it is possible to distinguish between two basic types: the first: it attempts to understand human thoughts and emotions that affect human behavior and has a limited ability for social interaction. the second: it is a model of the theory of mind, where these models can express their internal state and predict the feelings and attitudes of others and are able to interact with them and are expected to be the next generation of super-intelligent machines. 3.3. the goals and importance of artificial intelligence artificial intelligence aims to enable machines to process information closer to the human way of solving problems, where several orders are executed at the same time, and this is closer to the human way of solving problems. al-khawalid134: 2019, ). also, the goal of artificial intelligence is evolving and continuous. the interim goal is to reach systems that think and act like humans, as he points out (nagpal(to intelligence as building a machine that thinks and acts like human beings)nagpal, 2010 : 3), as for reaching systems that surpass the thinking and work of humans, as for the second stage, it is and this is what we see in fantasy stories, as experimental research is working to reach this goal and achieve it through high technology (hoavar, 2006: 9). it highlights the importance of intelligenceartificialthrough several things, including (al-obaidi46: 2013, ) : 1it uses a comparative approach to the human method in solving complex problems. 2dealing with hypotheses simultaneously, accurately and at high speed. 3there is a specialized solution for each problem and for each homogeneous category of problems. 4it operates at a constant scientific and advisory level that does not fluctuate. 5non-numeric symbolic data is processed through logical analysis and comparison. 6stirring up new ideas that lead to innovation. 7absence of feeling tired or bored. 8economy in expenditures and reduce human effort. 9reduce dependence on human experts. 4.3the advantages of artificial intelligence one of the most important advantages of intelligenceartificial (kaur, 2012: 6-7) (keswani, 2013:348) (al-bakri 4: 2018 , ) : 1it is one of the most important advantages of intelligenceartificialit is that his decisions are based on facts and not on emotions, and this is what distinguishes him from humans, as no matter how hard we try, it is a well-known fact that our decisions are always negatively affected by our emotions. 2machines in the shadow of intelligenceartificialand unlike humans, it works without getting bored or tired or stopping, and then it outperforms humans in this field. 3transforming experience and knowledge industrial minds and machinesaothers are made easier by copying them easily to others in this way, the time wasted in passing that knowledge to humans through training is reduced. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 5 www.americanjournal.org 4provides answers to decisions, processes, and recurring tasks. 5retaining large amounts of information 6reduce employee training costs 7increase efficiency by reducing the time required to solve problems. 8reducing the risk of injury and human stress because the work will be accomplished by smart industrial machines. 9reduce time and resources. 5.3 . artificial intelligence application intelligence income artificial in unlimited applications and fields, among these areas: 1the use of robots and robotic arms in production: the use of artificial intelligence applications in production represents a flexible automated examination of production processes (automated control, robots programmed to meet product specifications, self-organizing robots, and robots capable of learning), as well as flexibility in diagnosis, error detection, production control, planning and management in general.(www.discovery.org.in). sothat thisnothe human being began to imitate dynamically and developed into programmed machines whose performance could be changed by changing their control program. and the robotic arms in manufacturing have several benefits, including (al-bakri5 : 2010 , ):  do not ask for weekly, annual or occasional vacations.  do not be lazy or tired of work and do not stop except for the purpose of maintenance.  it can work in factories that are not air-conditioned or lit by not strong lighting, and this leads to energy savings.  do not claim compensation if you were accidentally or deliberately exposed to toxic gases or harmful chemicals.  it does not need support facilities such as nurseries, dining halls, gyms and other things that workers demand. and that all these advantages lead to significant savings in the cost of production. the most important industrial uses of robots and robotic arms include:  it performs jobs that are dangerous to humans.  it is used to clean nuclear power plants.  do repetitive jobs that are boring or stressful for humans. 2the use of artificial intelligence in the military may prepare some that the field of intelligenc eartificial not valid for society due to the support ground on which this field depends and its connection with the military institutions in the major industrial countries, especially america and britain, such as the agency for advanced research projects darpa (us defense advanced research projects agency), ai researchers have developed primary weapons or weapons-related systems that are part of a strategic computer applications initiative. the research now includes the production of the smart assistant to the captain, to help combat aviation under severe maneuvering conditions, and models of independent reconnaissance mechanisms that can enter enemy territory, avoid its attacks and transmit war data to command centers. this is in addition to the expert systems that help military leaders to reach correct decisions in light of the huge american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 6 www.americanjournal.org amount of complex and conflicting reports, as well as the speed that characterizes modern conflicts ((http://www.arteimi.info ) 3use of artificial intelligence at medicine field : intelligence has been usedartificialin managing the medical records of patients and knowing their medical history, as well as using it to analyze the results of various examinations quickly and more accurately. it also analyzes the notes in the medical reports, and on the basis of these analyzes the correct diagnosis is chosen for treatment. it also does not dispense with the use of these techniques in monitoring the patient’s condition and the extent of his response to treatment between repeated visits to the doctor (as a digital nurse).),many health organizations have also created an application (air cure app) to monitor the patient’s use of treatment, where a webcam is connected with smartphones to ensure that the patient has taken the drug dose and to monitor the development of their health status (al-khawalid 104: 2019 ). one of the benefits of using artificial intelligence in the field of medicineb.(merizek639: 2012, ) : 1the reliance of hospitals on the system of intelligenceasiit provides opportunities to raise the level of its quality and appearance contemporary and in line with the changes of the times. in addition to the ease of communication with the outside world in the field of medical research and medicine. 2it reduces costs, because these services, information and consultations do not require manual diagnosis or doctors. 3using the intelligence systemartificialit will allow effective communication from competitor partners and customers because communication is done electronically and through artificial intelligence programs, and thus appropriate programs are developed for this in terms of exchanging information between hospitals as a whole and between customers to know their requests and opinions in a faster way. 4the auditors can make reservations through these programs and know the results of the examinations and their medical history, as well as placing the patient on the website, which also means providing information at any time and anywhere, as well as working to save time instead of going to the hospital during official working hours and avoiding transportation and waiting problems . 4the use of artificial intelligence in the field of agriculture with the development of science and technology at that time, artificial intelligence and agriculture have become inseparable, providing exciting and unlimited possibilities from the moment of seed germination to maintaining the integrity of crops and the actual harvest process, and artificial intelligence has been applied in the field of agriculture, as it can be divided into several categories(hunt & danghtry: ) (2017: 5351 .)(wang et.al, 2019 : 2) ((ayamga, et.al, 2021 : 2(www.noonpost.com ) (www.m.fpuavdrone.com ) : aintelligent agricultural robot:this robot performs many important agricultural tasks, such as harvesting crops with high productivity at much faster speeds than humans. this robot distinguishes that it works around the clock without getting bored and tired. http://www.arteimi.info/site/publication/ai%20applications.doc http://www.noonpost.com/ http://www.m.fpuavdrone.com/ american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 7 www.americanjournal.org bcrop and soil control:agricultural crops and soils are monitored through the use of computer vision and deep learning algorithms to process data captured by drones. software technology can also be used to monitor crop and soil health. cuse of unmanned aerial vehicles:by the year (2027), the market for drones in the agricultural sector is expected to reach (480) million us dollars. the use of drones is designed to help users increase crops and reduce costs. the plane is programmed, as soon as it is deployed. the device uses computer vision to record images and upload the captured data and integrate and analyze the images and data captured through algorithms to provide detailed analysis reports, and it will work for monitoring, spraying pesticides and pollinating trees. dself-driving harvesters:the use of the smart harvester is able to revolutionize the agricultural field. it facilitates the process of plowing and spraying seeds at equal distances. it can also monitor the level of growth and predict the date of harvest. therefore, researchers believe that the emergence of artificial intelligence can not only help improve agricultural efficiency, but also help solve the challenges facing agriculture, including crop yields, soil health and resistance to pesticides, so that agricultural robots will become an important application of artificial intelligence in the agricultural field. 4. the role of artificial intelligence in reducing agricultural product costs there are applications of artificial intelligence that can contribute to the service of those in charge of agriculture, which contributes to reducing labor costs (talaviya, 2020 : 64), and the application of many advanced technologies represented by smart agricultural machines to carry out agricultural tasks independently, as agricultural robots, drones and self-driving harvesters reduce costs by detecting agricultural diseases and pests in crops at an early date, which saves time and effort on farms in order to treat them, the drones also work on knowing if the fields are exposed to agricultural pests and then prevent the occurrence of infection (www.althaleej.ae ) on the traditional side, the process of detecting agricultural pests and diseases took about a month to identify the area of infestation, but after using artificial intelligence techniques, the detection of agricultural pests and diseases took only one hour, which contributed to reducing costs and treatment period, and at the same time the damage was reduced. the yield is large. that thelow cost and qualitythehigheit is certain that it achieves higher profits and thus achieves a competitive advantage with which the economic unit can face its competitors.rewers, et al, 2016: 1) . by relying on high automation, the direct costs represented in direct wages are greatly reduced and the limits of inventory and spoilage are also reduced, as direct costs represent a large proportion of production costs that may reach (75%) or more as an average for various agricultural products (david, 2015: 900-901). and through what researchers believe that the use of artificial intelligence for smart machines and equipment, including smart harvesters, smart agricultural robots and drones in the agricultural sector, may contribute significantly to the development of the agricultural sector in iraq and keep pace with developments in the world in order to increase the wheat crop to achieve self-sufficiency,given that the applications of artificial intelligence are numerous and varied in the agricultural sector, researchers http://www.althaleej.ae/ american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 8 www.americanjournal.org will address the use of the harvester and the smart agricultural robot because of their significant impact in reducing harvest costs than they were when using traditional methods. 5. practical side 1.5 an introduction to the national program for the development of wheat cultivation in iraq a scientific program to transfer modern technologies, including artificial intelligence techniques, to farmers in the governorates of iraq that are covered by the national program for the development of wheat agriculture in iraq in order to raise the yield of the wheat crop in ways that are compatible with the farmer’s mentality, degree of awareness and material income. the program has identified environmental and technical problems and provided treatments to solve them. the program areas are increasing annually in all governorates of iraq to reach (5) million dunums in the tenth year of the program’s life as a final goal to reach self-sufficiency in the wheat crop, as shown in the table (2) . table (2): program coverage plan in terms of area the year the area covered by the project (1000 acres) first a year of preparation and studies the second 100 the third 400 the fourth 900 fifth 1500 sixth 2150 seven 2850 eight 3550 the ninth 4250 tenth 5000 source: prepared by the researcher based on the statistics of the national program for the development of wheat cultivation 2.5 calculating the cost of one acre for wheat crop production according to traditional methods the national program for the development of wheat cultivation in iraq has identified three areas for each governorate, and the table shows (3the total area of the governorate, the areas proposed by the program, and the areas of typical (lighted) farms approved in each governorate: table (3) the areas specified by the national program for the development of wheat cultivation in iraq t provinces the total area of each governorate in dunams the proposed area in acres the area of typical farms in dunams 1. baghdad rusafa 64,864 45,000 45 2. baghdad karkh 106,265 45,000 45 3. nineveh 3,814,654 500,000 85 4. basra 32,278 13,000 45 5. diwaniyah 504,000 175,000 45 american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 9 www.americanjournal.org 6. babylon 315,000 60,000 45 7. dhi qar 346,189 50,000 45 8. diyala 480,872 50,000 45 9. anbar 564,000 30,000 45 10. maysan 351,000 50,000 45 11. najaf 230,000 100,000 45 12. salahuddin 111,075 100,000 45 13. wasit 1,218,345 567,000 85 14. kirkuk 943,957 100,000 45 15. karbala 100,000 75,000 45 16. double 226,099 65,000 45 source: prepared by the researcher based on the statistics of the national program for the development of wheat cultivation the typical farms (illuminated)1it aims to spread a series of technologies implemented by a specialized cadre of agricultural engineers. the illuminated farms are targeted by choosing a farmer who has a standing among his family and his people, that is: the one with influence and a discourse heard by others who can influence the farmers in the event of the success of the techniques used in order to be generalized on large areas of agricultural land . according to the traditional methods, lists were prepared to calculate the cost items for cultivating the wheat crop in the model farms of the province of baghdad.90 acres, as shown in table (4 .). table (4) the cost of producing the wheat crop in baghdad governorate according to the traditional methods for the 2020/2021 agricultural season cost items for typical farms of 90 dunums the cost of one acre total space cost m at er ia ls seeds 9,000 810,000 f er ti li se rs urea 24,150 2,173,500 dab 26,250 2,362,500 potassium sulfate 45,000 4,050,000 minor elements 750 67,500 pesticides 2,674 240,660 total material cost 107,824 9,704,160 w a g es tillage wages 10,000 900,000 land smoothing fees 10,000 900,000 settlement fee 10,000 900,000 1model farms (illuminated): are farms selected by the national program for the development of wheat cultivation in iraq in agreement with the farm owners to apply contemporary techniques to be later applied upon the success of the experiments on larger agricultural areas. source: personal interview with the director general of the national program for the development of wheat cultivation in iraq american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 10 www.americanjournal.org manual sowing fee 10,000 900,000 fertilization fee 5,000 450,000 control wages 5,000 450,000 the cost of automated work 50,000 4,500,000 employee wages throughout the season 19,637 1,767,330 total wage costs 119,637 10,767,330 total direct costs 227,461 20,471,490 until the harvest babble 2,000 180,000 harvest costs 20,000 1,800,000 loading / transporting / unloading (for materials) 300 27,000 after harvest crop cleaning fees 8,000 720,000 total indirect agricultural costs 30,300 2,727,000 download 16,000 1,440,000 transfer 8,000 720,000 evacuation 8,000 720,000 total marketing costs 32,000 2,880,000 total cost of wheat cultivation 289,761 26,078,490 source: prepared by the researcher table summary (4)it can be concluded that the production costs per acre of materials and wages represent the highest percentage of costs in the case of using traditional methods in the production process, hence the importance of shifting from production by traditional methods to production according to contemporary technologies to keep pace with development and contribute to reducing costs represented in materials and wages. 3.5 calculating the cost of one acre to produce the wheat crop after using artificial intelligence after identifying the costs of producing the wheat crop according to the traditional methods in the model farms of baghdad governorate,ytmin the subsequent paragraphs, the use of artificial intelligence techniques represented by the developed harvester and the smart agricultural robot to reduce the wage costs related to the cultivation of the wheat crop. the researchers have relied on a fully automated harvester with a smart agricultural robot connected to it to facilitate the harvest process and also contribute to reducing costs, time and effort, as will be discussed in the following paragraphs. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 11 www.americanjournal.org wheat harvester john deere s690 combine harvesters have largely saved human beings from manual labor and have become an important part of the global industrial revolution due to the presence of competition +-, the leading agricultural brands in the combine harvester industry have released a series of their combine harvesters. the wheat combine harvester is characterized by an increase in the total collecting capacity and a decrease of28% in the volume of residues. plus, its active terrain adjustment™ option adjusts the settings for the dyna-flo plus when working on slopes. so if you have gradual terrain this is a must if you are going uphill or downhill. the harvester featuress690 with an impressive transport speed of 40 km/h, such features are triggered, to maintain high productivity in challenging conditions. estimated harvest cost44,000,000 iraqi dinars, and the estimated useful life of the harvester is 30 years, and the value of the rubble is about 10,000,000. the depreciation provision can be calculated as follows: cost scrap estimated useful life = 10,000,000−44,000,000 30 =1,133,333 annual depreciation premium artificial agricultural robot system from companycongnitive agro pilot can be installed on any type of combine harvester. the system can independently control the harvester. the system consists of several parts: 1. a computer unit with an integrated display screen with a built-in neural processor using components that are resistant to vibration and temperature, the unit is protected by a tight aluminum casing that protects it from shock and moisture 2. the positioning and navigation module solves the tasks of positioning and evaluating the dynamics of the movement of the harvest, and provides connection to the remote control center and other equipment in the field. 3. a video camera based on the latest color sensor designed specifically for portability applications, the camera is adapted to rapidly changing lighting conditions, shadows, dust, and anything that obstructs good visibility. the camera is protected by a case, 4. digital hydraulic unit provides reliable steering and operates on standard machine hydraulic system 5. steering wheel angle sensor is essential for driving on a specific track with a high degree of accuracy and figure (1) shows the components of the system and how they are installed on any type of combine harvester and where they are installed: depreciation premium = american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 12 www.americanjournal.org figure (1) parts of the system and their installation locations in the harvester source: cognitive pilot autonomous driving technologies for ground transport system advantagesagro pilot 1. high accuracy :taking into account the geometry of the field edge or crop rows, the system does not deviate from the path by more than 20 cm, which then increases the productivity by 25%. 2. self control:works independently without connecting to satellitegps, as it does not require highaccuracy positioning 3. safety :the system detects obstacles, other machines and people, which reduces the risk of malfunctions caused as a result of a collision 4. quick install:a day or two is only what it takes to install the system on any type of combine harvester 5. ease of maintenance:the entire system can be updated through the application used, as there are no complicated settings for the system. at the moment when the crop is capable of being harvested and before it is exposed to damage and the farmer bears irrecoverable losses due to the delay in the harvest process, an extra week in the harvest process can lead to a damage to the crop by 3-5% in addition to the volatile weather conditions that can affect the the harvest process, as the climate also requires an adjustment to the harvest schedule to regulate the time and waste the least possible amount of the crop. the price of the integrated system is 9,500 dollars, equivalent to 13,737,000 iraqi dinars, the productive life of the system is estimated at 1000 working hours depreciation of the hour = cost ÷ working hours = 13,737 ÷ 1000 = 13,737 dinars per hour the total costs of using the harvester and the smart agricultural robot are calculated as:came: the wages for working on the harvester and the system are 20,000 dinars per hour, and the value of fuel is 600 dinars per acre to facilitate the harvest process, it is necessary to purchase two harvesters, and each harvester has an integrated system represented by an agricultural robot since the work of the harvester is 40 dunams per hour and the system will cover an area of 40 dunams per hour, then the working hours can be calculated for typical farms in baghdad governorate ascame: hours of work per group = total area of group ÷ area covered per hour = 90 dunums ÷ 40 dunums american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 13 www.americanjournal.org = 2.25 working hours for typical farms in baghdad governorate system cost for total area = depreciation of the hour x number of working hours = 13,737 x 2.25 = 30,908.25 work wages = hourly wages x hours worked = 20,000 x 2.25 = 45,000 dinars labor wages for the total area the price of a liter of fuel for the harvester is 400 dinars, and the fuel consumption per hour is 1.50 liters x 1.5 = 600 dinars / dunam 400 ؞ fuel cost = fuel cost per acre x total area = 600 x 90 = 54,000 dinars for the total area harvest cost of the total area = depletion of the harvester + system cost + labor wages + fuel =1,133,333 + 30,908.25 + 45,000 + 54,000 =1,263,241 dinars the cost of harvesting one acre = the cost of harvesting the total area ÷ the total area of baghdad governorate =1,263,333 ÷ 90 =14,037 dinars / acre from the above, it was concluded that the use of the harvester and the smart robot has reduced the costs of harvesting when switching from traditional methods to the use of artificial intelligence represented by the use of the harvester and the smart agricultural robot.1,800,000 iraqi dinars for an area of 90 acres and so on equivalent to 20,000 dinars per acre while the cost of harvesting after using artificial intelligence for the total area of baghdad governorate became 1,263,333 dinars, which is equivalent to 14,037 dinars per acre from the foregoing, it was concluded that the use of artificial intelligence has contributedbreducing the costs of the agricultural product represented by the harvesting process of the strategic wheat crop by a large percentage, as the percentage of reduction was as follows: table (5) the difference between the traditional and contemporary costs of the wheat harvest process conservativee traditional harvest costs combine harvester and smart robot costs the difference between the two costs total reduction % baghdad 1,800,000 1,263,333 536,667 30% source: prepared by the researcher based on the results of traditional and contemporary methods based on what has been achieved after using artificial intelligence in the process of harvesting the wheat crop for typical farms in the province of baghdad, a list of costs can be prepared based on the results extracted after using the harvester and the smart agricultural robot, as shown in the table (6) : american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 14 www.americanjournal.org table (6)the cost of producing the wheat crop in baghdad governorate after using artificial intelligence for the agricultural season 2020/2021 cost items for typical farms of 90 dunums the cost of one acre total space cost m at er ia ls seeds 9,000 810,000 f er ti li se rs urea 24,150 2,173,500 dab 26,250 2,362,500 potassium sulfate 45,000 4,050,000 minor elements 750 67,500 pesticides 2,674 240,660 total material cost 107,824 9,704,160 w a g es tillage wages 10,000 900,000 land smoothing fees 10,000 900,000 settlement fee 10,000 900,000 manual sowing fee 10,000 900,000 fertilization fee 5,000 450,000 control wages 5,000 450,000 the cost of automated work 50,000 4,500,000 employee wages throughout the season 19,637 1,767,330 total wage costs 119,637 10,767,330 total direct costs 227,461 20,471,490 until the harvest babble 2,000 180,000 harvest costs 14,037 1,263,241 loading / transporting / unloading (for materials) 300 27,000 after harvest crop cleaning fees 8,000 720,000 total indirect agricultural costs 24,337 2,190,241 download 16,000 1,440,000 transfer 8,000 720,000 evacuation 8,000 720,000 total marketing costs 32,000 2,880,000 total cost of wheat cultivation 283,798 25,541,731 source: prepared by the researcher 6. conclusions and recommendations 6.1 conclusions 1. by using artificial intelligence, the costs of direct wages related to the harvesting process can be reduced as a result of relying on the harvester and the intelligent agricultural robot, thus reducing american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 15 www.americanjournal.org dependence on the human element. on the other hand, the human element remains of great importance in the operation and management of machines. 2. by using the harvester and the smart agricultural robot, the farmer's work in harvesting saves time, effort and cost. through the system, the harvester is controlled and obstacles and damage to the harvest are avoided, and their use has achieved a reduction in costs compared to the traditional costs. 3. by using artificial intelligence, it is possible to advance the agricultural sector in iraq and increase wheat production to reach self-sufficiency. 6.2 for recommendations 1. the necessity of transforming the agricultural sector from traditional methods of production to the use of artificial intelligence to keep pace with developments in the developed world. 2. the use of artificial intelligence in the agricultural sector reduces cost and time, while providing a high quality product. 3. using the world’s successful experiences in developing the agricultural sector and getting acquainted with the most important developments in the world of contemporary technologies, including artificial intelligence, to advance the agricultural sector in iraq, as it is an important and vital sector. sources 1. ismail, abdel rahim nader abdel rahim, ( 2021), “the mediating role towards modern technologies in the relationship between the use of artificial intelligence and marketing innovation,” journal of financial and commercial research, volume (22), issue (3). 2. bakri, a. dr . riad hamza, al-hamdani, m. dr.. bahaa hussein,(2011),comprehensive management accounting, the reality of development in light of practical progress and the concept of artificial intelligence, college of administration and economics, university of baghdad. 3. bakri, a. dr.. riad al-hamza, shanawa, m. dr.. dear medal,(2018)the role of artificial intelligence in achieving customer satisfaction and its reflection on cost accounting, journal of financial studies (jafs), volume three, issue 45. 4. hamed, jihad salem. (2019), "reducing productivity costs by using the green hexagonal diffraction approach", unpublished master's thesis, college of administrative technology, middle technical university. 5. dr. khawald abu bakr ,( 2019 ) ,"applications of artificial intelligence as a modern direction to enhance the competitiveness of business organizations", publisher: the arab democratic center for strategic, political and economic studies, berlin, germany, first edition. 6. al-saadi, wissam aziz shanawa,(2016),"the challenge of cost accounting (appropriate for use in light of artificial intelligence and its role in achieving customer satisfaction), phd thesis, council of the higher institute for accounting and financial studies, university of baghdad. 7. al-obaidi, m. raafat asi ,(2015),the role of artificial intelligence in achieving green productionkirkuk university journal of administrative and economic sciences, volume 5, issue 1. 8. othmaniyeh, omnia, (2019), “basic concepts of artificial intelligence,” a collective book entitled “applications of artificial intelligence as a direction to enhance business american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 16 www.americanjournal.org competitiveness”, arab democratic center for strategic, political and economic studies, berlin, germany. 9. merizek, dr. negligence,(2012) ,"artificial intelligence and telemedicine in the field of health care in consideration of the algerian reality", the eleventh annual scientific conference on business intelligence and knowledge economy, faculty of economics and administrative sciences and al-zaytoonah university of jordan. 10. nasr el-din, salmi, bin daql, kamal, (2020), “the role of artificial intelligence in the product planning process in a companyooredoo algeriajournal of economic, facilitation and commercial sciences, volume (13), issue (01). 11. hajira, sheikh, (2018), “the role of artificial intelligence in managing the electronic customer relationship of the algerian people’s credit”, the academy for social and human studies. 12. smith. chris, mcguire. brian, 7huang. ting, (2006), “the history of artificial intelligence”, university of washington. 13. david, fr, & david, fr (15th edition),. (2015). 'strategic management: concepts and cases: a competitive advantage approach.' pearson education. 14. kaur. harpreet, (2012), “artificial intelligence: bringing expert knowledge to computers.” 15. keswani. g, gaurav, (2013), “artificial intelligenceis our future bright or bleak.” 16. nath. rajakishore, (2009) , “philosophy of artificial intelligence”, a critique of the mechanistic theory of mind, florida, usa, 17. rewers, p., trojanowska, j., & chabowski, p. (2016). "tools and methods of lean manufacturing-a literature review". in 7th international technical conference technological forum (pp. 135-139). 18. talaviya, t., shah, d., patel, n., yagnik, h., & shah, m. (2020). "implementation of artificial intelligence in agriculture for optimization of irrigation and application of pesticides and herbicides". artificial intelligence in agriculture, 4, 58-73 19. honavar. vasant "articial intelligence: an overview". 2006. 20. hunt jr, er, & daughtry, cs (2018). what good are unmanned aircraft systems for agricultural remote sensing and precision agriculture?. international journal of remote sensing, 39(15-16), 5345-5376. 21. wang, p., tian, j., niu, h., & chen, y. (2019, august). smart agricultural in-field service robot: from toy to tool. in international design engineering technical conferences and computers and information in engineering conference (vol. 59292, p. v009t12a050). american society of mechanical engineers. 22. ayamga, m., tekinerdogan, b., kassahun, a., & rambaldi, g. (2021). developing a policy framework for adoption and management of drones for agriculture in africa. technology analysis & strategic management, 33(8), 970-987 23. (www.discovery.org.in) 24. (www.m.fpuavdrone.com) 25. (www.althaleej.ae) 26. (www.noonpost.com) 27. (http://www.arteimi.info ) http://www.discovery.org.in/ http://www.m.fpuavdrone.com/ http://www.althaleej.ae/ http://www.noonpost.com/ http://www.arteimi.info/site/publication/ai%20applications.doc american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 20 www.americanjournal.org the effect of free cash flow on the firm value in a sample of iraqi commercial companies listed in the iraqi stock exchange hashim hayder yousef (1), master. student. faculty of administration and economics, department of accounting / university of kufa, najaf, iraq. hashim97.hayder@gmail.com assist. prof. dr. hassnain kazem ojah (2) (2) faculty of administration and economics, department of accounting / university of kufa, najaf, iraq. hassnink.alshahmani@uokufa.edu.iq a b s t r a c t k e y w o r d s the research aims to measure the impact of free cash flow on the value of the firm. this goal is achieved by identifying the concept of free cash flow and the concept of firm value, based on the annual financial reports data for a sample of the (27) iraqi companies listed on the iraq stock exchange. b (15) companies from the banking sector, (8) companies from the industrial sector, and (4) companies from the insurance sector for the period from (2011-2020). for the purpose of measuring the free cash flow, the (brigham & houston, 2019) model was used, and the (tobin s q) model was used. t) and (f) test using both spss and amos. the research reached several results, the most important of which is that there is a statistically significant effect of free cash flow on the firm's value. the most important thing recommended by the researcher is the need for companies listed in the iraqi stock exchange to provide sufficient information about the free cash flow (fcf) and optional disclosure about it because this disclosure provides important information for all parties that have interests and objectives linked to the firm, and helps them in making investment decisions related to the firm as well. study and analyze the financial data for making investment decisions in detail and follow the methods of evaluating investment projects (economic feasibility study) to prevent wrong (sub-optimal) investment decisions that result in huge irreversible losses. keywords: free cash flow, firm value mailto:hashim97.hayder@gmail.com mailto:hassnink.alshahmani@uokufa.edu.iq american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 21 www.americanjournal.org introduction net cash from operating activities provides an indication of the firm's ability to generate cash from its core activities, but analysts note that this figure. insufficient, as the net cash provided by the operating activities is not taken into consideration with what companies must invest in new assets at the level of their current operations or expansion, and therefore it was necessary to have a quantitative measure that shows the firm’s ability to exploit its money from operational activities through cash. the free cash flow was a feasible indicator as it provides an additional insight into the firm's ability to generate cash from its main activities. it describes the net cash provided and the surplus by operating activities after adjusting for capital expenditures and cash dividends. firm value is important to investors and shareholders. the management of the firm seeks to maximize the value of the firm as one of the strategic goals and to express its efficiency in asset management. the value of the firm from the point of view of the shareholder is the total return obtained by the shareholder, which includes dividends and the increase in the share price, and it is defined as a measure of wealth, because it represents the amount of wealth generated by the business units of the owners or shareholders, because the main objective of the management of the firm is to increase the wealth of shareholders . research importance it is hoped that this research will be of interest to those in charge of managing the stock market to the necessity of educating the importance of analyzing the impact of free cash flow on the decisions taken by managers because it is expected to provide important information that would enhance the value of the firm and thus market efficiency and activate the movement of stock trading in it. . the success and continuity of companies and the maximization of their value in the long term is the first goal for investors, as well as being beneficial to many relevant parties and leads to the development of the economy in general. and the firm’s success is an analysis of the effect of free flow and its use in creating new investments that reflect the efficiency of its investment decisions and for the purpose of organizing and directing investment in a way that serves the firm’s interest away from the opportunistic behavior of corporate managers. this good analysis may contribute to reducing agency costs and increasing the firm’s profits and value in the financial market. research problem recently, many researchers have highlighted the search for variables that have a significant impact on the diversity of investment opportunities, and free cash flow was one of these variables that whenever there were free cash flows, this led to the search for the best investment decisions, which in turn will reflect on the value of the firm from through its competitiveness and the diversity of its business fields, the more investment opportunities increased and diversified, which led to a higher value of the firm and a decrease in the risks surrounding the firm, which is reflected in the value of the firm. therefore, the research problem can be represented by the following questions: • is the presence of free cash flow reflected in the value of the firm? american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 22 www.americanjournal.org research aims the research seeks to achieve a set of goals, most notably the following:  a statement of the concept of free cash flow, its types, importance and methods of measuring it.  understand the concept, importance and methods of measuring the value of the firm.  test the impact of free cash flow on the value of the firm. research hypothesis for the purpose of achieving the objectives of the research and answering the questions raised in the research problem, the following hypotheses were formulated: • there is a statistically significant reflection of the free cash flow in the firm's value. community and sample research the research community consists of a sample of the (27) iraqi commercial companies listed in the iraqi stock exchange, represented by (15) companies from the banking sector, (8) companies from the industrial sector and (4) companies from the insurance sector for the period from (2011). -2020). by (270) views, this sector was chosen for its great importance for investments in it. statistical methods and prig to achieve the objectives of the research and to reach the results of the research sample, a set of statistical methods will be used, including statistical analysis such as linear regression, correlation coefficient, (t) test and (f) test, as well as using path analysis using the spss statistical package for social sciences, and statistical software amos. the effect of free cash flow on the firm's value will be measured statistically by means of a regression model. spatial and temporal boundaries the limits of the search are represented by the iraqi private banks listed on the iraq stock exchange and whose data are completed within the time period of the research, which extends from 2011 to 2020. research method and beneficiaries some of these goals will be achieved on the theoretical side by relying on the inductive approach of previous studies and literature, books and relevant scientific references, and some of the goals will be achieved on the practical side by measuring the three research variables in a quantitative manner. multiple destinations, including: 1financial market it is hoped that this research will be of interest to those in charge of managing the stock market to the necessity of educating the importance of analyzing the impact of free cash flow on the decisions taken by managers because it is expected to provide important information that would enhance the value of the firm and thus market efficiency and activate the movement of stock trading in it. . 2corporate management the management of companies can benefit from this research if they take into account that their success, continuity and maximizing their value is the first goal for investors, as well as being beneficial american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 23 www.americanjournal.org to many relevant parties and the growth and development of the economy in general, and that one of the reasons for the firm’s success is the efficiency of the decisions issued by it. 3financial analysts, investors and lenders these parties jointly seek to obtain the information necessary to rationalize their economic decisions. 4subsequent researchers this research constitutes a modest addition to the scientific library in general and to the local library in particular, as to the knowledge of the researcher that this research is the first of its kind that seeks to study and analyze the impact of free cash flow on the efficiency of investment decisions and their reflection in the value of the firm. free cash flow concept the concept of free cash flow has appeared in the financial accounting literature under a variety of terms such as excess cash flow, extra cash flow, cash flow that can be distributed to shareholders, and cash flow that can be expendable by managers (12 bhandari & adams, 2017:), jensen) ) the first to refer to the concept of free cash flow in 1986 and defined it as cash flow in excess of what is required to finance projects with a positive net present value (npv (na, 2018: 1)), and he defined (trisna & gayatri, 2019) free cash flow is the firm's image of flows cash available in the accounting period after deducting operating costs and expenses (trisna & gayatri, 2019:487), and (qeshta, 2020) referred to the concept of free cash flow as the additional funds that can be exploited for investment purposes to generate future cash flows (qeshta, 2020: 32) according to kieso, free cash flow is the cash flow available from operating cash flows and this flow can be used to pay off debts, increase investment, purchase treasury shares, or increase liquidity (eklesiawati &novyarni,2020:4). (nurdani & rahmawati, 2020) believes that the free cash flow is the remaining cash that is distributed to investors (shareholders and creditors) after the firm invests in the necessary fixed assets and working capital to maintain the continuity of operating activities (nurdani & rahmawati, 2020: 104). as defined (sapuan et al, 2021), free cash flow is a measure of the firm's ability to generate revenue (sapuan et al, 2021:212) and (putri & azzahra, 2022) sees free cash flow as the money given to creditors or shareholders in the form of dividends without affecting the firm's growth rate (putri & azzahra, 2022:159). uses of free cash flow free cash flow can be used in the following expenditures (al kubaisi, 2016: 13) and (alnawaiseh et al, 2017: 1): 1. payment of cash dividends to shareholders. 2. payment of debts and interest owed to creditors. 3. purchase of short-term investments for the purpose of trading in non-operating assets. 4. reducing the debts incurred by the firm. 5. buy back shares. the importance of free cash flow cash flow is of great importance to companies and users of financial statements that can be summarized as follows: american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 24 www.americanjournal.org 1checking creditworthiness financial analysts and lenders are interested in the financial position of the firm, specifically the firm's credit efficiency and the level of liquidity through several financial indicators, the most important of which is the free cash flow index (abbas, 2021: 24). usually, the positive free cash flow is an indication that the firm is able to meet its financial obligations. free cash on the provision of internal financing to finance investment opportunities that will lead to the enhancement of shareholder wealth. the free cash flow of the firm also allows the firm to increase dividends to shareholders, develop new products, pay off debts and buy back shares (mundia, 2016:1-2). 2measuring financial performance free cash flow represents one of the tools for measuring financial performance by clarifying the amount of cash owned by the firm after the required operating assets have been developed (tristiarini & prawiwi, 2017: 184), the backbone of any firm's performance is free cash flow. free cash flow is used to evaluate and analyze the financial position the firm’s internal financing is often backed by free cash flow and is the source for improving the firm’s financial performance if used effectively in attracting investments can lead to massive growth of the firm and increase the profitability of the firm lenders are always looking for companies with high cash flow as they assess the financial stability of the firm shareholders who are looking for a safe haven for their surplus funds are more likely to invest in companies with high cash flow financial performance is used to assess the success of the firm i. komal et al, 2022:545). 3investing in new assets effective use of free cash flow will lead to managers making optimal investment decisions as managers use free cash flow on profitable (positive npv) projects (iskandar et al, 2012:76), and sometimes managers use free cash flow to purchase new assets ( widyanti & widyasari,2019:341). 4attracting investors investors consider companies that have a high free cash flow as more beneficial, that investors are always keen to invest in companies with high cash flows if they often evaluate the work of any firm on the basis of two criteria the first criterion is the extent of financial flexibility that the firm enjoys the second criterion how easy is it for the firm to repay its loans, so free cash flow plays a key role in the investment decision-making process for investors, as it is one of the important indicators that investors rely on in evaluating companies’ performance, so many investors rely on free cash flow predictions and are interested in knowing how much free cash flow in the firm so that they can get a proper idea of the profits that they can get when investing in these companies (ambreen & aftab, 2016:113), and therefore companies that have high free cash flow easily attract investors looking for effective opportunities to invest their surplus money creditors and investors are keen to put money in companies with high free cash flow because it is more profitable (ajmal et al, 2022). :183). 5-free cash flow is more suitable for administrative purposes the traditional profits that companies disclose in the financial statements contain items such as cash dividends, expansions, and contingency provisions, while free cash flow does not contain those items, so it is more suitable for administrative purposes (al-zayyat, 2014: 14). american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 25 www.americanjournal.org the concept of firm value an important concept that investors consider when making an investment is firm value. according to sintyana and artini 2019)), the higher the value of the firm, the greater the return that the firm's shareholders will receive. so the value of the firm is very important to the investor. the high value of the firm will make the market believe, not only in the firm's performance but also in the firm's future prospects (sintyana and artini,2019;7716). it is also defined as investors' perceptions of the firm's level of success in managing its resources, which is reflected in the firm's share price (reschiwati et al, 2019:327). while (husain et al, 2020) defined the firm's value, the value of the firm is an important concept for investors as a tool or indicator that is used to evaluate the firm as a whole (husain et al, 2020: 16). and (utami & hasan, 2021: 1250) defined it as the firm's ability to provide maximum prosperity to shareholders if the firm's stock prices increase. the researcher believes that the value of the firm is an indicator for the investor to see the firm's performance before deciding to invest in it. factors that help enhance the firm 1) social responsibility disclosure of social responsibility can be interpreted as a form of corporate responsibility for the existence of social and environmental problems around the firm, companies that disclose social responsibility optimally are able to bring about an increase in the value of the firm. one of the benefits when implementing social responsibility disclosure, including increasing the firm’s reputation, and consequently, the firm’s sales will increase, meaning that the firm will increase its demand by investors, and the firm’s sales will also be admired by consumers. therefore, if the firm increases social responsibility disclosure, it will also increase the value of the firm (machmuddah et al. , 2020: 632), and thus leads to an increase in the value of the firm (hafez, 2016:43). 2) hedging if the currency used in preparing the financial reports differs from the functional currency, then exchange rate fluctuations will affect the expected cash flows as a result on the value of the firm. therefore, hedging helps reduce fluctuations in the expected cash flows resulting from changing exchange rates and increases the value of the firm (2018:134), gupta alam&), as well as helping to reduce expected tax liabilities, mitigate underinvestment, reduce costs associated with borrowing, increase the firm's borrowing capacity, reduce agency costs and reduce conflicts of interest hedging strategies allow companies to mitigate the above-mentioned frictions and thus enhance firm value ( nova et al, 2015:8), hedging will increase the value of the firm because it sends a signal to investors that the firm's cash flows are guaranteed in the future (nguyen, 2015:4). 3) working capital working capital is described as the lifeblood of the firm and is the current assets minus the current liabilities. current assets generate the majority of cash for companies while current liabilities constitute the largest source of short-term cash flows for companies. corporate managers have to be diligent in managing working capital in an optimal manner (cumbie & donnellan, 2017: 138), working capital management affects profitability and risks as well as its impact on the value of the firm through the policy adopted by the firm in managing working capital, (altaf , 2018:121), and we note from the american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 26 www.americanjournal.org above that effective capital management leads to an increase in the value of the firm, and poor working capital management may lead to a decrease in profitability and thus reduce the value of the firm. 4) intellectual capital intellectual capital is one of the intangible assets and resources that companies invest to create value through new product and service innovations (madani et al, 2015: 739), and (berzkalne & zelgalve, 2014) confirmed that intellectual capital is the intangible safety cushion in the firm ( berzkalne & zelgalve, 2014:888) intellectual capital has a positive impact on the economic and financial performance of the firm, and the increase in intellectual capital is linked to an increase in the return on assets over time that helps improve the firm’s performance. as a result, it has a positive relationship with the firm’s value. strong value of the firm (ni, et al, 2021: 728). 5) research and development research and development investments play an important role in enhancing firm value. companies invest in research and development in order to improve the quality and attractiveness of their main products (kim et al, 2018:1). companies with high investments in research and development are profitable and successful as research and development enhances innovation capacity and generates intangible capital that is attractive to shareholders as it reflects an image of better financial performance and enhances their confidence in the firm's profitability, which will be reflected in the firm's value (lin & zhu, 2018: 424). we note from the above that research and development can enhance the value of the firm through innovative ability and enhance investor confidence in profitability, because research and development investments increase the future profitability of companies, which positively affects the value of the firm. methods for measuring research variables free cash flow measurement using a model (brigham & houston, 2019) the free cash flow according to this model is defined as the amount of cash that can be withdrawn without harming the company's ability to work and produce future cash flow. the free cash flow is calculated according to the following equation: fcf=ebit(1-t)+de-capex+∆wc it represents: fcf = free cash flow ebit = profit before interest and taxes (1-t) = (1tax rate) de = extinction and amortization capex = capital expenditure δwc = change in net working capital if the result of the previous equation is positive, the positive free cash flow indicates that the company is generating more than enough cash to finance the current investments in fixed assets and working capital, and on the contrary, if the result of the previous equation is negative, negative free cash flow indicates that the company is not it has enough internal funds to finance investments in fixed assets and working capital, which will be considered in the practical side of the research (brigham & houston, 2019:81). american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 27 www.americanjournal.org american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 28 www.americanjournal.org measuring a company's value using tobin's q scale james tobin's, a nobel prize winner in economics, introduced this measure in 1969 to predict a company's market value and future performance, which is one of the most widely accepted models. the advantage of tobin's q formula is that it has a high estimation accuracy as it does not require estimating the market value of the liabilities. and preferred shares and that it is based on estimating the replacement value of assets on the basis of the book value, and that the combined market value of all companies in the stock market must be equal to the cost of market value divided by the cost of replacing assets. the equation below reflects this model. (ali, 2021: 107) 𝐓𝐨𝐛𝐢𝐧’𝐬 𝐐 = total market value + total book value liabilities total book value of assets research hypothesis test results hypothesis "there is a statistically significant effect of free cash flow on the value of the company" to test this hypothesis, the following "linear regression" model was formulated: 𝑭𝑽𝒊𝒕 = 𝒃𝟎 + 𝒃𝟏𝑭𝑪𝑭𝒊𝒕 + it using the spss statistical program, the results were as follows : table (7) summary of hypothesis test form model summaryb model r r square adjusted r square std. error of the estimate 1 .133a .018 .014 .998 a. predictors: (constant), fcf b. dependent variable: fv the table above shows the model summary above that the correlation value ((r) between the variables amounted to 0.133, and the coefficient of determination r square was 0.018, and the standard deviation of the estimation error std. error of the estimate was 998.0 and the lower this type of error, the better statistically speaking. table (8) hypothesis test variance anova model sum of squares df mean square f sig. 1 regression 4.816 1 4.816 4.827 .029 residual 267.373 268 .998 total 272.189 269 the table above shows the variance above anova that the calculated f value is 4.827, which is greater than its tabular value calculated according to the degrees of freedom df (268.1), which is 3.84 at the level of significance of 5%, and that the level of significance of the test sig amounted to 0.029, which american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 29 www.americanjournal.org is less than the value of the accepted error in the social sciences the predetermined value of 0.05, which indicates the appropriateness of the statistical model used in the hypothesis test. table (9) regression function coefficients for the hypothesis coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) .015 .061 .243 .808 fcf .134 .061 .133 2.197 .029 the most important thing shown in the above table is that the slope value of the regression equation amounted to 0.134, which shows the effect of the independent variable on the dependent variable (by parameter b), and the positive value of the coefficient indicates that there is a direct effect between the independent and dependent variables, or in other words that any increase in the independent variable (the flow free cash) by one degree leads to an increase of 13.4% in the dependent variable (the value of the company) with the stability of all other independent variables and that the level of t-statistics morale reached 0.029, which is less than 0.05. . conclusions 1free cash flow is a positive indicator that the company is able to meet its financial obligations. the free cash flow also allows the company to increase dividends to shareholders, develop new products and repurchase shares, which will have positive effects in raising the value of the company. 2free cash flow is one of the important indicators that investors and financial analysts rely on in evaluating companies' performance because it gives a clearer picture of the company's ability to make profits. 3the presence of free cash flow in the company allows the company to pursue investment opportunities that guarantee the wealth of shareholders and the value of the company. 4investment decisions for companies one of the most basic decisions and important factors that determine the value of a company, investment decisions are efficient when they improve the value of the company and inefficient when there is either an increase in investment or a decrease in investment and reduce the value of the company. 5inefficiency in the use of free cash flow leads to the creation of the agency problem because managers tend to use free cash flow to achieve their own benefits at the expense of shareholders' interests, which would reduce the value of the company. 6there are a number of factors that help in enhancing the value of the company, including the level of adoption of social issues, the amount of attention to intellectual capital, the quality of accounting information disclosure, the focus on research and development, as well as the extent to which the international financial reporting standards (ifrs) has been adopted. 7there is a statistically significant effect of free cash flow on the company's value for iraqi companies, the research sample, which is consistent with the results of a study, and it is consistent with the results of each of the studies (al-sahliyat, 2016.) american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 30 www.americanjournal.org recommendations 1increased interest in the concept of free cash flow (fcf) by companies listed on the iraqi stock exchange, as it is one of the modern and important measures of the financial performance of companies and an important tool for evaluation. therefore, it is important to mention it in the published financial reports as other indicators. 2the necessity for companies listed in the iraq stock exchange to monitor the level of free cash flow (fcf) because of its impact on the performance and value of the company. 3the companies control board's evaluation of management decisions regarding free cash flow due to its importance in raising the value of the company. 4the necessity for companies listed on the iraqi stock exchange to provide sufficient information about the free cash flow (fcf) and optional disclosure about it because this disclosure provides important information for all parties that have interests and objectives linked to the company, and helps them in making investment decisions related to the company. 5studying and analyzing the financial data for making investment decisions in detail and following the methods of evaluating investment projects to prevent wrong investment decisions (suboptimal) that result in huge irreversible losses. 6since the issue of the impact of free cash flow on the efficiency of investment decisions and their reflection on the value of the company needs more research and study, the researcher recommends, in this context, to conduct other specialized research that takes into account the following: a. the impact of free cash flow and the efficiency of investment decisions on the continuity of the company. b. b the impact of free cash flow on the financial policies of companies. c. cfree cash flow and profit management. references 1. abbas, zahraa hussein. 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an examination of companies.(master programme in finance, lund university). 30. ni, y., &cheng,y.r.(2021).do intellectual capitals matter to firm value enhancement? evidences from taiwan .journal of intellectual capital,22(4),725-743. 31. nova,m.v.,cerqueira,a.,&brandao,e.(2015).hedging with derivatives and firm value :evidence for the nonfinancial firms listed on the london stock exchange. research work in progress,1-47. 32. profita,a.s.k.,&ratnaningsih,d.(2016).the impact of free cash flow on the firm value.core,1-12. 33. putri,d.a.k.,azzahra,k.(2022).the effect of free cash flow ,investment opportunity set and institutional ownership dividend policy .journal of management ,accounting ,general finance and international economic issues (marginal),1(4).155-168. 34. putri,v.r.,&rachmawati,a.(2017).the effect of profitability ,dividend policy, debt policy, and firm age on firm value in the non-bank financial industry .nawajournal ilmu management &ekonomika,10(1),14-21. 35. qishta, ahmed samir. (2020). “explanation of the relationship between free cash flows and the financing structure, an applied study on companies listed on the palestine exchange.” al-azhar university-gaza, faculty of economics and administrative sciences, master's thesis. 36. reschiwati,r.,syahdina,a.,&handayani,s.(2019).effect of liquidity ,profitability ,and size of companies on firm value .utopia y praxis latinoamericana,25(6),325-331. 37. rimaz,m.,&ayanogiu,y.(2021).the effect of free cash flow and capital structure on the company's efficiency and an application in ise 100.ibad sosyal bilimler dergisi,9,267-290. 38. sapuan,n.m.,wahab,n.a.,fauzi,m.a.,&omonov,a.(2021).anaysing the impacts of free cash flow and agency cost towards firm performance in the public listed companies in malaysia .journal of governance and integrity(jgi),5(1),211-218. 39. sintyana,p.h.,&artini,l.g.s.(2019).pengaruh profitability's, struktur modal, ukuran perusahaan and kebijakan dividen terhadap nilai perusahaan. e-journal manajemen,8(2),7717-7745. 40. sun,y.,&havidz,s.a.h.(2021).the impact of ifrs adoption on value relevance accounting information :evidence from indonesia. international conference on biospheric harmony advanced research ,1-10. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 33 www.americanjournal.org 41. trisna,i.k.e.r.,&gayatri.(2019).ukuran perusahaan memoderasi pengaruh free cash flow dan leverage terhadap kebijakan dividen.e-journal akuntansi universitas udayana,26(1),454-509. 42. tristiarini,n.,&pratiwi,r.d.(2017).leverage capability in controlling free cash flow to improve financial performance .advances in economics ,business and management research (aebmr),46,184-188. 43. widyanti,n.,&widyasari,w.(2019).factors affecting free cash flow (fcf) with dividend policy as a mediating .advances in economics ,business and management research ,145,340-345. 44. zhu,x.,&lin,y.(2017).does lean manufacturing improve firm value ?.journal of manufacturing technology management,28(4),422-437. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 54 www.americanjournal.org financial instruments audit program according to the international auditing practice statement no. 1000 (special considerations in financial instruments auditing) milad hilal hamo (1) mielad.dawood1601@pgiafs.uobaghdad.edu.iq prof. dr. khawla h. hamdan (2) dr.kawla@pgiafs.uobaghdad.edu.iq federal board of supreme audit (1) university of baghdad higher institute of accounting and financial studies (2) a b s t r a c t k e y w o r d s the research aims to identify the general framework of financial instruments and audit procedures in accordance with international auditing standards, and prepare an audit program to audit financial assets according to the international auditing practice statement no. 1000. special considerations in auditing financial instruments, as it provides important practical assistance to auditors when addressing the issue of evaluation and other considerations related to financial instruments. and that the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material errors, whether they are caused by fraud or error, and the research has reached a set of conclusions, the most important of which are: and auditing accounts do not meet the requirements of auditing in described of the new accounting treatments described under the international financial reporting standards with regard to financial instruments, and the research also reached the most important recommendations: the need to adopt the proposed auditing program that was designed by the researcher in the federal office of financial supervision and auditing and auditing companies which shows how to audit accounts that fall within the scope of the requirements of (ifrs 9), (ifrs 7), (ias 32) and the international auditing practice statement no. (1000), as it includes clear audit procedures on each item that falls within the scope of these standards, to assist the external auditor. it can be relied upon when auditing financial assets and expected credit losses. audit program, financial instruments, iapn 1000, ifrs 9, ifac. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 55 www.americanjournal.org introduction: supervisors of commercial banks need periodic data on the workflow within the bank to check on the proper use of material resources and take decisions aimed at correcting deviations or errors that occur during the implementation of the bank's activities, as well as making sure that the financial statements of the bank fairly represent the financial position of the bank and the results of its activity. in accordance with generally accepted accounting principles,( hasan., atshan., & abd, 2023).in 2014, the international accounting standards board (iasb) issued new standards for financial instruments, represented by international financial reporting standards no. 9 (recognition and measurement of financial instruments) and international financial reporting standard no. 7 (disclosure of financial instruments) to be an alternative to international accounting standard 39 ( recognition and measurement of financial instruments) issued by the international accounting standards committee due to the large number of criticisms it faced, the most important of which was considering it the main reason for the occurrence of the global financial crisis in 2008, which prompted both the international accounting standards board (iasb) and the american accounting standards board (fasb) to develop new accounting standards related to financial instruments, which requires the international federation of accountants to issue the international audit practice statement no. 1000 (special considerations in auditing financial instruments) to guide it when auditing these instruments. it will have a fundamental impact on the audit process in terms of the requirements for designing and implementing the audit program by the auditor. in the iraqi environment in general and the banking sector in particular. the first axis / research methodology research problem failure to update the approved auditing programs for auditing financial instruments in accordance with the international auditing practice statement no. 1000 (special considerations in auditing financial instruments). the importance of research the importance of adopting international auditing standards when preparing and proposing an auditing program in accordance with those standards that contributes to expressing a neutral technical opinion on the fairness of the financial statements. research objective identifying the theoretical framework for the statement of international auditing practice no. 1000, special considerations in auditing financial instruments. preparing a proposed audit program to audit financial instruments. research hypothesis the program leads the proposed audit of financial instruments in accordance with the international auditing practice statement no. 1000 (special considerations in auditing financial instruments) to identify deviation in the financial statements and respond to them? research method the inductive approach was relied on by examining international accounting standards and the relevant international auditing practice statement no. 1000 and local accounting rules. data collection methods the researcher dealt with the research through the following: american journal of business management, economics and banking volume 13 june, 2023 p a g e | 56 www.americanjournal.org 1-theoretical side: the researcher relied on arabic and foreign books, literature for accounting and auditing, arab and foreign periodicals, as well as publications related to the research, which are sourced from professional organizations, dissertations, letters, arab and foreign university research, and the internet. 2-the applied aspect: the researcher relied on preparing a program for auditing financial instruments according to a set of international auditing standards. the second axis / the theoretical aspect of financial instruments and audit procedures according to the international auditing practice statement no. 1000. theoretical side of financial instruments definition of financial instruments ias 32 defines a financial instrument as a contract that can create a financial asset for an economic entity and at the same time create a financial liability or an equity instrument for another economic entity. a contract that imposes on an economic entity a contractual obligation to deliver cash or another financial instrument or exchange financial instruments based on potentially uncertain terms or transfer a contractual right to receive cash or another financial instrument or exchange financial instruments based on potentially uncertain terms to a unit other economics (shallour, 2011: p. 96) . components of financial instruments first the financial asset: the financial asset is defined as the asset that is represented in cash, and the investment in shares of another economic entity (such as ordinary or preferred shares), or it is a contractual right to receive cash from another economic entity such as loans, receivables and bonds (kieso, 2012: 480). second financial obligations: defined as obligations that are contractual in the event of a contract. (ias 32, 2012:8) delivery of cash or other financial asset to another economic entity. 1) 2) the exchange of financial assets or financial liabilities with another economic entity under potentially uncertain circumstances. the economic entity has an obligation and can be paid against one of its financial assets or dispose of one of the elements of its capital components (such as capital bonds), in the event that the number of bonds required to pay the aforementioned obligation changes with the change in their fair value and the total fair value of those bonds is not expected to be realizing gains or losses as a result of the fluctuation in the price of capital bonds, and that these fluctuations are treated as a financial obligation on the economic entity (al-owaisi, 2015: 70). third equity instruments: defined as the remainder after paying debts and other obligations on the economic entity, and ownership instruments, which is what belongs to the owner of the economic entity and theoretically includes all the owners who invested in the economic entity, including the funds used to start the economic entity, and the annual profits that it has been kept in the economic entity over the years, as well as the ongoing investments made in order to replace and improve the assets of the economic entity (lund, 2013:6), and in the same context it represents a share in ownership such as ordinary shares or preferred shares and other capital shares after the date of the acquisition of the shares and according to the acquisition of the economic entity and the share of the ordinary shares of the economic entity invested in it (ibrahim, 2009: 11), and that the difference between the equity instrument and the financial commitment, although they are within the financial instruments, is that the financial american journal of business management, economics and banking volume 13 june, 2023 p a g e | 57 www.americanjournal.org commitment instrument results in a contractual agreement to receive or receive cash by one of the parties, while the equity instrument entails for the economic entity the right to choose to deliver cash to shareholders and is not considered a financial obligation (younis, 2011: 3). audit procedures according to the international auditing practice statement no. (1000) special considerations in auditing financial instruments: in order to attract the attention of auditors to focus on these important aspects, procedures have been identified in a number of international standards, and the researcher will address them as follows: 1. international auditing practice statement no. (1000) special considerations in auditing financial instruments: since the external auditor may encounter, in his quest for approvals between banks, difficulties related to language, terminology, fixed interpretation, the scope of matters covered by the answer, these difficulties often result from the use of different types of approval requests, or from a misunderstanding about what was intended by them. coverage, or due to the difference in audit procedures from one country to another. the international auditing and assurance standards council issued the international auditing practice statement no. (1000) regarding mutual certification procedures between banks. the council has confirmed that the purpose of statement (1000) is to provide assistance in the certification procedures between banks to the auditor, as well as to the bank’s management, such as internal auditors and inspectors. statement (1000) will also contribute to the effectiveness of authentication procedures between financial institutions, and to the efficiency of the answers provided. in addition to the foregoing, he indicated that the statement was prepared and approved by a joint committee represented by the international committee for the auditing profession of the international federation of accountants, and the committee on instructions and practice of banking supervision of the group of ten major industrialized countries and switzerland, in the month of november of the year / 1983 until it was published in february of the year / 1984, the statement included (1000) instructions regarding the need for authentication, methods of using it, preparing and sending it, and receiving answers to it, in addition to the content of authentication. (jum'a, 18: 2013). 2. international standard on auditing no. (200) the general objectives of the independent auditor and conducting the audit: it states that the aim of auditing the financial statements is to raise the degree of confidence of the intended user in the responsible party so that the auditor can express his opinion about the bank’s financial statements, which were prepared in accordance with a specific financial reporting framework, and the auditor’s report must refer to the financial reporting framework that was used in preparing the financial statements of the bank, including determining the country of origin for the financial reporting framework, when the frameworks of international standards are not used in the preparation of financial reports, and when the report on the financial statements of the bank has been specially prepared for use in a country other than the country in which its laws were established. the auditor considers whether those financial statements contain appropriate disclosures about the financial reporting framework used. (jum'a, 31: 2013). international standard on auditing no. (540) auditing accounting estimates .as it requires the auditor to obtain an understanding of how the management makes accounting estimates and the data on which the estimates are based, as the management develops a methodology for american journal of business management, economics and banking volume 13 june, 2023 p a g e | 58 www.americanjournal.org evaluating the fair value of financial assets. this methodology relies on active market information related to the financial asset or similar or matching information, or the fair value is evaluated by the management using an expert according to the three levels approved in the international financial reporting standard 13 (fair value) (1035: 2017, iaasb), as for expected credit losses, it requires the auditor when the management adopts multiple methodologies for each type or group with common characteristics one of the financial assets is obtaining an understanding of these methodologies and verifying the validity of the deliberate calculation methods in each methodology, in addition to verifying the information used in each methodology and the calculation results that are considered the outputs of each methodology (instructions of the central bank of iraq, 2018: 8). 3. assessment of the risks of material misstatement: the international auditing standard isa 540 (auditing accounting estimates) states that the degree of uncertainty in the accounting estimate resulting from evaluating the fair value of financial assets or measuring expected credit losses leads to an increase in the risk of material errors in accounting estimates, especially those that have a high level of uncertainty in fluctuations future cash flows (1035: 2017, iaasb), and thus the emergence of what is known as audit risk, which was defined by the american institute of certified public accountants (aicpa) as the risk resulting from the failure of the auditor to express his opinion appropriately and related to the financial statements that contain material errors (al jauhar and et al., 2017: 70), as defined as the risks of the auditor expressing an appropriate opinion when the financial statements are materially distorted, or expressing an inappropriate opinion when the financial statements are free from material misstatements. (5: 2013, lobo & zhao), as defined by the international federation of accountants as the risks that the auditor expresses an inappropriate audit opinion when the financial statements contain material errors. the risk of auditing can be viewed from two different angles (al-sabbagh, 2016: 45). first: the risk resulting from the wrong rejection, that is, when the financial statements are sound and the auditor rejects them unjustly. second: the risk resulting from wrongful acceptance, that is, when the financial statements of the unit under audit are accepted by giving a clean report, at a time when the financial statements contain substantial errors. international standard on auditing no. (320) materiality in auditing: in assessing materiality, the auditor should take into account the following: because of the high efficiency, the relatively small erroneous data may have a significant impact on the results of the time period and on the capital, although its impact may not be significant on the total assets. banks' revenues are low compared to the total assets and liabilities off the balance sheet, so the distorted data that is related to assets only, may have less importance in liabilities than those that can also be associated with revenue data. banks are often subject to regulatory requirements such as requirements to maintain the lowest levels of capital, and breaching these requirements may raise doubts about the appropriateness of management's use of the continuity hypothesis, so the auditor establishes the level of relative importance in order to identify distorted data, which, if not corrected, will cause material breach of such regulatory requirements. (jum'a, 69: 2013). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 59 www.americanjournal.org international standard on auditing no. (580) written declarations: recognitions must be obtained from management acknowledging its responsibility for preparing the financial statements in accordance with the applicable accounting standards, and they are among the evidences upon which the external auditor relies when expressing his opinion. international standard on auditing no. (315) identifying and assessing the risks of material misstatement through understanding the entity and its environment: the standard sets requirements for understanding the economic entity and its environment, including the entity's internal control system, as the auditor's understanding and evaluation of the internal control system enables him to identify and assess the risks of material misstatement in the financial statements and levels of assurance (25: 2019, aicpa) as the goal of the criterion is that the auditor studies and evaluates the internal control system of the entity under audit in order to identify the extent of its soundness as the point from which it starts, as the weakness or strength of the internal control system determines the size of the sample chosen during the implementation of the audit program related to financial assets, since all accounting information related to it is audited. with financial assets, it is considered impossible in large entities that own a large volume of financial assets, such as loans and financial investments in stocks, bonds, and others. therefore, whatever the control system is weak leads to an increase in the size of the selected sample, which requires more time and effort, and vice versa (mazon, 2011: 23). -international standard on auditing no. (500) audit evidence regarding the auditor obtaining the assurances contained in the financial statements: the auditor implements the basic procedures to obtain audit evidence represented in: firstviewing: this includes examining records, documents, or tangible assets. the auditor checks if he is convinced of the actual existence of the tangible negotiable assets that the bank holds. second inquiries and confirmations: inquiries include seeking to obtain information about known persons inside or outside the bank. it also includes confirmations on aspects of the inquiry to enhance the information contained in the accounting records. third – guarantees: • ascertaining or obtaining an independent confirmation of the value of assets and liabilities that are not traded or can be traded only through direct sales. • existing, commitment. • legal opinions on the legality of the bank's claims. fourth: the account: the account includes examining the arithmetic accuracy of the source documents and accounting records, or the implementation of the accounts independently, and within the content of auditing the bank’s financial statements. the account is a useful procedure for examining the continuous application of evaluation models. : international standard on auditing (520) analytical procedures according to international standard on auditing no. (520), analytical procedures mean the analysis of significant ratios and trends, including examination results about fluctuations and relationships that are not consistent with other appropriate information or deviation from expected amounts. (jum'a, 137: 2013). isa no. (560) subsequent events: the external auditor has sufficient understanding of the nature of subsequent events, as he is obligated to design and implement audit procedures to verify that all events that the entity goes through up to the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 60 www.americanjournal.org date of the auditor’s report may require adjustments or disclosure in the financial statements that have been diagnosed, as the prices announced in the market may not reflect those the changes. international standard on auditing no. (260) communication with those charged with governance: as the standard requires reporting of audit issues of administrative importance from the external auditor to those responsible for monitoring performance in the economic entity, and because of the uncertainty that is frequently associated with some fair value measurements, any potential impact on the financial statements can be of any important risks of administrative importance, for example the external auditor takes into account the relative importance of the items measured at fair value and related to the assumptions made by the management (juma, 2009: 71-72). international standard on auditing no. (700) forming an opinion and reporting on the financial statements: according to this standard, the external auditor evaluates the adequacy and appropriateness of the evidence obtained for measuring the fair value and disclosing it in the financial statements and its compatibility with the applicable accounting standards, taking into account the consistency of this evidence with other audit evidence obtained related to the rest of the items of the financial statements. in order to reach an opinion on the financial statements as a whole (ifac, 2015,688). the quality of the external auditor’s report on fair value measurements and their disclosures is determined in light of the objective of the audit process, as it is audited within the audit of the financial statements as a whole according to isa 700, or auditing for special purposes isa 800, and (mazon) sees this as follows: (mazon, 2011: 80). issuing a report on auditing fair value measurements and disclosures with the financial statements as a whole: in this case, fair value audits are not referred to unless there are material distortions associated with them, which should issue a conservative or adverse report or refrain from expressing an opinion according to their impact on financial statements.( abd., kareem., & kadhimc, 2019). the third axis / preparing an audit program for financial instruments after reviewing the financial instruments in general in the second axis, it becomes clear to us that the auditor expresses an opinion on the truthfulness and fairness of the financial statements of the entity subject to audit, which bears distortions and fundamental accounting irregularities as a result of the management’s failure to comply with the laws, instructions, and applicable accounting norms. the auditor was working in an audit office or one of the auditor's assistants. in this topic, the auditor's procedures will be presented according to international auditing standards in their theoretical form poor estimates when auditing financial instruments. requirements for designing the proposed audit program for financial instruments based on the international practice statement no. (1000): auditor program in light of the requirements of international financial reporting standards . the program for auditing financial assets and expected credit losses in accordance with international standards prepared by the auditor consists of main sections as follows: 1description of the account: financial assets are represented in (investments in debt instruments or property instruments). they are current assets kept by the entity in order to accumulate wealth by earning interest on debt instruments (loans, bonds, etc.) investments increase the value of the capital as american journal of business management, economics and banking volume 13 june, 2023 p a g e | 61 www.americanjournal.org they constitute a large part of the total assets owned by the entity, as the investment can be represented by financial assets in the investment in ordinary or preferred shares or investment in governmental and non-governmental bonds or loans and others, as for the expected credit losses that came with it (ifrs 9) it is considered one of the provisions of great importance because it depends on future forwardlooking information based on macroeconomic indicators according to the unit’s methodology for calculating them and a special model for them according to the management’s estimate of the indicators related to each financial asset or a group of similar assets. 2audit objectives: during the implementation of the audit program related to financial assets (debt and equity instruments) and credit losses, the auditor aims to verify the following: • occurrence: evidence of the existence of financial assets (financial investments of various kinds in debt instruments and property instruments) registered and the occurrence of investment transactions indicating their existence. • completeness: this objective is concerned with determining whether all financial operations related to financial assets and their investment transactions are complete. which should be recorded in the books have already been recorded. 3classification: this objective is related to determining whether the financial assets recorded in the books have been appropriately classified in accordance with the international standards represented in standard. 4valuation: this objective relates to determining whether financial assets have been appropriately evaluated. that is, the evaluation process is carried out according to the amortized cost or the fair value, and any unrealized increase or decrease in the value is appropriately recorded in accordance with the requirements of standard 5presentation and disclosure: this objective relates to determining whether the presentation and disclosure of financial assets and realized and unrealized profits and losses are appropriate in accordance with international standards. audit procedures first: general procedures: • ensure that senior management is committed to developing business models and policies for the distribution of financial assets according to those models. • ensure the reliability and clarity of the business models set by the bank • ensure that business models reflect the bank's strategy for managing financial assets and securing related cash flows in the long term. • ensure the extent of the bank’s stability on the established business models, and in the event that it is forced to change, it must take into account (that the changes are justified and not repeated, that they result from internal and external changes that have a significant impact on the bank). • conducting discussions with the administration in order to obtain sufficient understanding regarding the methodology set by the bank for calculating expected credit losses and its compatibility with the requirements of the standard and the guiding regulations provided by the central bank regarding the application of the requirements of the standard. • verify the soundness of the systems used in calculating expected credit losses in terms of their suitability with the requirements of the standard by involving experts in the audit process. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 62 www.americanjournal.org second: procedures for auditing financial assets: the following procedures must be followed to verify financial assets: financial assets at amortized cost • verifying the validity of the returns of financial assets (stocks, bonds, loans, etc.) by referring to their issuance certificate . • checking whether all financial transactions related to financial assets and their investment transactions are complete. which should be recorded in the books have already been recorded. • verifying the classification of financial assets into the category of financial assets at amortized cost if the following conditions are met : • a business model that requires keeping financial assets (debt instruments) represented by cash with banks, internal and external government bonds, and cash credit facilities (loans and advances) until the maturity date in order to obtain contractual cash flows represented by the nominal value and interest on the nominal value. • contractual cash flow characteristics when the financial asset gives a specific date for receiving periodic interest based on the principal amount and payments from the principal amount. • the sale is an accident within this model and according to the conditions mentioned in the standard, such as the presence of a deterioration in the credit capacity of the issuer of the debt instrument. • that a clear and approved documentation process takes place for the justifications for each sale and its compatibility with the requirements of the standard. • checking the measurement of financial assets upon purchase at their fair value, which represents the cost of purchase and transaction costs, with the exception of financial assets through profits and losses, as the cost of their operations is treated as an expense and closed in the profit and loss account. • verifying the validity of the amortized cost measurement of financial assets (debt instruments) at the end of the fiscal year. • verifying the validity of the fair value measurement of financial assets through the following procedures: • when relying on published prices in an active market, the auditor understands and examines the methods through which the published prices used in evaluating the fair value are obtained. • verifying the annual movement of financial assets and verifying all additions and exclusions (sales and purchases) during the year and ensuring that the buying and selling process was carried out in accordance with the applicable powers (the managing director, the chairman of the board of directors). • ensure that realized and unrealized profits, gains, interests, and losses are recorded in the profit and loss account. • the audit of presentation and disclosure of financial assets differs depending on whether the entity has adopted the fair value option for evaluation. if the entity does not opt for the option, the auditors must determine that the financial assets are correctly disclosed under the amortized cost category. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 63 www.americanjournal.org financial assets at fair value through other comprehensive income • verify the authenticity of the returnees of shares and bonds by referring to the certificates of shares and bonds and any other documents supporting ownership. • verifying that all financial transactions related to financial assets (stocks and bonds) that must be recorded in the books have actually been recorded . • ensure that financial assets are classified into the category of financial assets at fair value through other comprehensive income through: • if the objective of the business model for managing financial assets is to hold them in order to collect cash flows and sell them. • high sales in terms of periodicity and value compared to the business model maintained in order to collect contractual cash flows. • verifying the validity of the fair value measurement of financial assets. according to the three approaches specified in ifrs 13 (fair value measurement) through the following procedures: • when relying on the first and second approach to measuring the fair value, which is based on published prices in an active market or markets similar to an active market, the auditor must understand and examine the methods through which the declared prices used in evaluating the fair value were obtained. • when the management makes fair value estimates according to its assumptions (in the case of prices not published in an active market) according to the third approach, which is based on management estimates based on the available information, the auditor must, based on the international auditing standard ias 540 (auditing accounting estimates), perform with the following procedures. examining the information used as input to the process of measuring the fair value of financial assets, and evaluating the appropriateness of this information, including that used in the expert's work and management's assumptions. • the auditor prepares independent estimates of the fair value, as well as seeking the assistance of an expert for those estimates, if necessary, and compares them with the estimates prepared by the management and examines the differences. • evaluating the adequacy and appropriateness of the obtained evidence related to measuring the fair value of the financial assets under audit. • checking the reasonableness of the assumptions made by management when measuring the fair value of financial assets through the following procedures: • • the extent to which the measurement techniques and assumptions set by the management in determining the fair value are consistent with international financial accounting and reporting standards, and the extent to which they are applied consistently during the financial periods. • verify whether subsequent events that occur after the date of preparing the report require adjustments in the fair value measurements of the financial assets. • ensure that changes in the fair value related to financial assets are shown through other comprehensive income, in the statement of other comprehensive income and equity items in the statement of financial position. • ensure that the gains or losses resulting from selling part of the financial assets at fair value through other comprehensive income are shown in the statement of other comprehensive income and equity items, with the transfer of the fair value reserve presented within the statement of other comprehensive income and equity to the item of retained earnings. • ensure that the realized investment revenues have been received and that they have been included in the revenue items in the profit and loss statement. • evaluation of the fair and adequate presentation of financial assets through other comprehensive income in the financial statements. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 64 www.americanjournal.org third: expected credit loss verification procedures: the following procedures must be followed to verify expected credit losses: • obtaining an understanding of the main credit operations of the entity represented in granting and monitoring credit, determining provisions, and examining the operational effectiveness of the entity's internal control system. • ensure that all financial assets on the balance sheet and off-balance sheet accounts that are subject to measuring expected credit losses are included within the three stages specified in the standard. • verify the correctness, completeness and accuracy of the information used, whether it is historical or represents the current situation or about future forecasts or macroeconomic indicators. the auditor evaluates the following evaluation of the entity impairment provisions policy based on (ifrs 9) including the standard of significant increase in credit risk with the requirements of (ifrs 9). • evaluation of the methods and methodology of the unit credit losses model against the requirements of (ifrs 9). • evaluation of the validity of the credit rating of the entity. • checking the validity of theories and the integrity of the mathematical operations of the models. • • checking the future assumptions (macroeconomic indicators) used by the bank in calculating the expected credit losses and comparing them with the available information and how they were integrated in determining the expected credit losses. • the auditor understands the design and examination of the operational effectiveness of the internal control related to the expected credit losses model, including building the model and approving it and follow-up / continuous verification and governance around the model and the accuracy of the calculations, as well as verifying the validity, completeness and accuracy of the data used and the reasonableness of management assumptions. • evaluating the appropriateness of the accounting policies used in measuring expected credit losses, including the significant increase in credit risk, i.e. the indicators set by the management that indicate the transfer of the financial asset between stages at the date of each report. • verifying how debt instruments are grouped if expected credit losses are measured on a collective basis. • checking the bank's write-off policy, including indications that there is no reasonable expectation of recovery of the full book value and interests of debt instruments subject to the measurement of expected credit losses. • selecting a sample of financial assets and off-balance accounts in order to perform the following procedures: • verifying the validity of the credit rating classification according to the three stages, and ensuring the correctness of the calculations for the degree of risk for each financial asset. • verifying changes in estimation methods or significant assumptions made during the reporting period and the reasons for those changes. • ensuring the appropriateness of the process of determining credit. • exposures upon default in payment, including consideration of cash flows (interests on a debt instrument) resulting from repayment and the resulting calculations. • ensuring the appropriateness of the probability of default, the credit exposure upon default and the loss in case of default (including the values of the collateral used) at the various stages. • verifying the validity of calculating the expected credit losses for a period of 12 months at the date of preparing the report for financial assets on the balance sheet and off-balance sheet accounts that fall within the first stage of the credit rating as a result of the absence of a significant increase in their credit risks upon initial recognition. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 65 www.americanjournal.org • verifying the correctness of calculating the expected credit losses for the entire life at the date of preparing the financial report for the on-balance sheet financial assets and off-balance sheet accounts that fall within the second stage of the credit rating as a result of a significant increase in credit risk, but without objective evidence. • verifying the correctness of calculating the expected credit losses for the entire life at the date of preparing the financial report for financial assets within the budget and off-balance sheet accounts that fall within the third stage because they have become non-performing. • verify the disclosure of expected credit losses at the date of preparation of each report within the statement of profits and losses, or gains to recover losses that require an adjustment to the loss allowance at the date of the report. • the auditor understands and evaluates the fundamental assumptions of the model in relation to exposures as well as exceptions, with a focus on: the main model assumptions by the unit. – • the basis and data used to determine the exceptions. – • select a sample of exposures and carry out the evaluation procedures for the appropriateness of exposure at default, probability of default, and loss given default (including collateral values used) in calculating expected credit losses. • timely identification of exposures with a significant increase in credit risk and the appropriateness of the credit rating of the entity. • calculation of expected credit losses. – with regard to the forward-looking information used by the entity management in calculating the expected credit losses, the auditor is required to conduct discussions with the management and verify the internal approvals by the management regarding the economic forecasts used for the purposes of calculating the expected credit losses. • checking the adequacy of disclosures in the financial statements with regard to provisions for expected credit losses as required under (ifrs 9). the third axis: conclusions and recommendations conclusions • the auditing programs approved and issued by the federal office of financial supervision and the auditing and control companies do not meet the auditing requirements in light of the new accounting treatments indicated under the international financial reporting standards. • the absence of an audit program prepared in accordance with international financial reporting standards and international auditing standards may lead to an opinion contrary to the truth and fairness of the financial statements, especially the extent of compliance with the requirements of auditing financial instruments. • reliance on the proposed audit program prepared by the researcher will help the auditors when auditing the items that fall under the requirements of ifrs 9 and the international auditing practice statement no. (1000) represented in the classification and measurement of financial assets and the measurement of expected credit losses, as it provides clear procedures to audit items that fall within the scope of the standard. recommendations • oblige the federal office of financial supervision, the central bank of iraq and the auditing profession council to pay attention to the media aspect of applying accounting standards issued by the international accounting standards board (iasb) and international auditing standards issued by the international auditing and assurance standards board (iaasb) through holding workshops american journal of business management, economics and banking volume 13 june, 2023 p a g e | 66 www.americanjournal.org and training courses, holding conferences and seminars related to international accounting and auditing standards and how to switch to their application by financial institutions operating in iraq. • the external auditor and his team must exercise sufficient professional care, that is, develop more procedures, take longer time, and examine a large volume of selected samples when implementing audit procedures related to verifying the completeness, accuracy, and reliability of historical, current, and future information, the method of calculation, and the results extracted, in order to reach reasonable assurance. about the absence of fundamental errors in the results. • the necessity of adopting the proposed auditing program that was designed by the researcher at the federal bureau of financial supervision and auditing and auditing companies, which shows how to audit accounts that fall within the scope of the requirements of (ifrs 9), (ifrs 7) and (ias 32) and the statement of international auditing practice. no. (1000), which includes clear audit procedures for each item that falls within the scope of these standards, to help the external auditor to rely on it when auditing financial assets and expected credit losses. references: 1. abd, w. h., kareemb, a. d., & kadhimc, h. a. (2019). audit program proposal for local accounts auditors: applied research on a group of international auditing standards. .. international journal of innovation, creativity and change, pp. 7(8), 201-222. 2. abu nassar, muhammad, humaidat, juma, “international accounting and financial reporting standards,” department of the national library, amman, jordan, 2019. 3. aicpa , " omnibus statement on auditing standards " , 2019 . 4. al-johar, karima ali, al-baldawi, shaker abdul-karim hadi, muhammad, ihsan diab abd, hamoudi, ahmed jassim, “modern trends in auditing and oversight according to international standards and local legislation,” al-jazeera printing and publishing office, iraq, baghdad, 2017. 5. al-maeeni, saad salman, yassin, youssef taha, “the effect of measurement and disclosure requirements of international accounting and financial reporting standards in the scope of the audit process,” a research published in the journal of dinars, the twelfth issue, 2018. 6. al-owaisi, abd al-rahman ahmed ghazal, 2015, the role of disclosing the fair value of financial investments in enhancing the benefit of accounting information for the purposes of investment decision-making, applied research in a sample of investment companies listed in the iraq stock exchange, a research submitted to the board of trustees at the arab institute for chartered accountants as part of the requirements for obtaining the chartered accountancy certificate. 7. al-sabbagh, samer hayel, “the effect of quantitative measurement of the risks of fundamental errors in improving the accuracy of audit risk assessment, phd thesis, damascus university, faculty of economics, 2016. 8. arens, alven. elder, randal and beasley, mark "auditing and assurance services: an integrated approach", 15th edition, pearson ltd, 2014. 9. arens, alvin, lubeck, james, “the review: an integrated introduction”, dar al-marikh publishing house, riyadh, saudi arabia, 2013. 10. camilleri , emanuel , camilleri , roxanne , " accountin for financial instruments , a guide to valuation and risk management " routledge , 2017 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 67 www.americanjournal.org 11. challour, wissam, 2011, the accounting treatment of financial instruments under international accounting standards, a master's thesis in commercial sciences submitted to the faculty of economic, commercial and management sciences farhat abbas university – setif. 12. gerald lobo, yuping zhao, relation between audit effort and financial report misstatements : evidence from quarterly and annual restatements, accounting review, forthcoming, may 14, 2013 13. ghareeb, flash ikram, “the role of applying the international auditing standard (701) in enhancing the reporting of the auditor’s report and reducing the expectations gap an applied study,” master’s thesis, al-mustansiriya university, college of administration and economics, 2019. 14. grant thornton , " considerations for the audit of expected credit losses , " 2017 15. hasan, m. g., atshan, a. a., & abd, w. h. (2023). the impact of the relationship between supervisors of commercial banks and the work of the external auditor, a study according to the international auditing standard (1004). journal of corporate finance management and banking system (jcfmbs) issn: 2799-1059, 3(03), 14-28. 16. ibrahim, muhammad abdullah, 2009, the use of the fair value method in evaluating investments in securities and its impact on presentation and disclosure in the financial statements, iraqi journal of economic sciences, year 8, issue 24. 17. ifac, "handbook of international quality control, auditing, review, other assurance and related services pronouncements", iaasb, 2015. 18. international accounting standard board ,2012 ,ias 32 -financial instruments: presentation, london. 19. international auditing and assurance standards board ( iaasb ( handbook of international quality control, auditing, review, other assurance, and related services pronouncements ,2017. 20. international auditing and assurance standards board ( iaasb ) handbook of international quality control, auditing, review, other assurance, and related services pronouncements ,2018. 21. kieso, donald. weygandt, jerry and warfield, terry, "intermediate accounting", ifrs edition, , third edition , john wiley & sons, inc. 2018 . 22. lund ,margaret ,2013, cooperative equity & ownership – an introduction , university of wisconsin center for cooperatives , www.uwcc.wisc.edu . 23. mazoun, mohamed amin, “accounting auditing from the perspective of international standards and the extent of their application in algeria”, master thesis, university of algiers, faculty of economics and management sciences, 2011. 24. the international federation of accountants, “the third paper – auditing”, translated by the arab society of certified accountants, the national library, amman, jordan, 2013. 25. younes, khaled abdel rahman juma 2011, the effect of applying value accounting for financial instruments on stock returns, master thesis in accounting and finance the islamic university, gaza. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 33 www.americanjournal.org the impact of leadership styles on organizational performance for yemeni pharmaceutical companies: the mediating role of job satisfaction aziz abdulla muthana hussain, researcher, faculty of business, amman arab university, jordan azizabdulla1990a@gmail.com malek alharafsheh assistant professor, business department, faculty of business, amman arab university, jordan, alserhan@aau.edu.jo. malekibrahimalharafsheh@gmail.com. 0000-0001-5952-0156 a b s t r a c t k e y w o r d s this study aimed to identify the impact of leadership styles on the organizational performance of yemeni pharmaceutical companies, with job satisfaction as a mediating variable, the study used the comparative method of previous studies that dealt with the field of research. the study reached a set of results, the most prominent of which were: the existence of an average level for each of the styles of leadership (transformational, democratic, servant, and participatory), and the existence of an average level of organizational performance and job satisfaction in yemeni pharmaceutical companies. in the light of the results, the study recommended the need for managers in yemeni pharmaceutical companies to do everything that would increase, develop and improve the practice of transformational leadership because of the features and characteristics that affect the behavior of leaders and their actions with all parties within the company environment, and focus on involving employees in decision-making. the importance of participatory leadership in increasing employees' self-confidence, which in turn is reflected in achieving excellence in performance. leadership styles, organizational performance, yemeni, job satisfaction 1. introduction leadership is one of the basic administrative functions, which makes various efforts towards directing the efforts of individuals working in the organization, in order to achieve specific goals, whether at the level of the worker or the organization (rahi et al., 2021). quality in developing administrative work in the organization, and facing internal and external challenges affecting the work of the organization, where the leadership style followed by the leaders of the organization plays the main factor in the success of organizations, because the administrative leader has a prominent role in influencing the behavior of workers, as he is the link between workers and between the plans of the organization and its future perceptions, and the forces that control work problems and solve them, and keeping pace american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 34 www.americanjournal.org with the surrounding changes and employing them to serve the organization (alsamirae et al., 2020; alomari et al., 2019). in view of the accelerating changes, the leadership of organizations today has had to evolve in accordance with these changes in their internal and external environment. appropriate, leaders and organizations have a variety of styles of leadership, and at the same time these styles may not fit with the organization's environment, or with its employees, and therefore the administrative leader in the organization must follow or have an appropriate style or style of leadership (berger et al., 2019). job satisfaction plays an important role in influencing the performance of the organization, through achieving their psychological feeling of contentment, satisfaction and happiness to satisfy needs, desires and expectations with the work itself and the work environment on the one hand, and with confidence, loyalty and belonging to the work and with the relevant internal and external environmental factors and influences on the other hand, in conclusion, the success of the organization is closely related to the members of that organization, the positivity of its members working in it, and the achievement of its goals depends primarily on the leadership style followed by the manager or leader in influencing the direction of the behavior of workers in order to achieve the goals of the organization on the one hand, and influencing the satisfaction of its employees, which it is reflected in their performance, and thus the performance of the organization (belias & koustelios, 2014; lehyeh et al., 2020). accordingly, this study comes to clarify and demonstrate the impact of leadership styles on organizational performance through job satisfaction as a mediating variable in yemeni pharmaceutical companies. 2. previous studies: this part dealt with theoretical literature related to the variables of the study, which are leadership styles and organizational performance among workers in yemeni pharmaceutical companies. depending on the method of comparison and through the figure below, we find an explanation of the most important compositions of the study. figure 1: study set-up diagram there were many studies that analyzed the phenomenon of administrative leadership, and its impact on various economic aspects, and they agreed among themselves on one thing, which is that leadership has a great impact on the individual and the organization on the one hand, and on society as a whole (habes et al., 2023). as administrative leadership is linked to directing the behavior of individuals in organizations, coordinating their efforts and balancing their motives and their needs in order to reach the group to achieve the goals of the organization with high efficiency, and to him the success of the institution in achieving its goals and mission is closely related to how the leader manages, and the pattern, method and method of leadership that he exercises, as well as the characteristics, characteristics and qualities of successful leadership that are represented in his personality and his leadership styles organizational performance job satisfaction american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 35 www.americanjournal.org ability to employ his capabilities towards work building by building positive human relations between workers, improving their work performance, motivating them to give continuously, and managing the organization's affairs in general (lehyeh et al., 2020). 2.2 leadership styles in this modern era, which is characterized by rapid change and progress at all technological, technical, industrial, economic and other levels, organizations are exposed to environmental pressures that force them to change in all their systems, methods, and administrative and leadership methods in order to keep up with this change (muhaisen, 2020; saputra & mahaputra, 2022). transforming the direction of work culture from the old to the new, and in this regard it was necessary to address leadership styles in order to understand the complexities and clarity of vision related to the development of organizations (kesting et al., 2015). leadership styles are seen as “a combination of various and multiple characteristics, traits, behaviors, and practices that leaders use to interact with their subordinates, and with individuals working in the same organization” (colquitt et al., 2014). in light of the above, leadership is one of the most important factors leading to improving work efficiency in our social life, and most leaders are fully aware of the importance of the impact of leadership styles on employee satisfaction and the organization's revenues in general. leadership is the main weapon of the organization, and through it, managers can be able to achieve goals and work productivity for organizations (choi, 2021). busari et al., (2020) summarized the types of leadership styles that must be adopted by leaders in light of the data of modern management, and these types will be adopted in the current study as follows: 1transformational leadership transformational leadership has recently gained attention from writers and administrators, as scholars see transformational leadership as one of the most popular patterns in recent times, as it aims to explain the unusual influences of some leaders on the behaviors of their followers. transformational leaders are leaders who have the ability to raise the level of motivation. in individuals, and raising the level of their work from the personal level to the collective or organizational level, the fact that the transformational leader can transform the orientations of his followers towards focusing attention on collective interests, which makes them feel effective in serving and achieving the goals of the group and the organization (habes et al., 2018; wright et al., 2012). transformational leadership is defined as "the method adopted by the leader to influence the behavior of his followers, whether they are individuals or groups, in the light of having a clear vision that expresses the organization's mission and goals, in addition to his ability to create excitement among his subordinates in a way that can gain their trust and loyalty" (dias et al., 2019). the importance of leadership emerges as an idea oriented towards fundamental goals that lies in inspiring workers to work in a harmonious manner with the aim of building an organization based on a value base, by setting values that work to bring about changes in its culture and beliefs, and contribute to setting standards for organizational performance within an integrated and coherent format that makes it capable of responding effective actors of internal and external changes. contemporary organizations face, in essence, the needs and desires of their employees and those who deal with them, which requires the presence of leaders who have characteristics, values and beliefs that differ radically from the characteristics of traditional leadership so that they are able to employ effective resources, technologies and information systems (rey et al., american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 36 www.americanjournal.org 2019). and the leadership of the organization in all competitive conditions, as the effective organizations are flexible and innovative and adopt clear strategies for change and excellence. most studies revealed that transformational leadership works by (uusi-kakkuri, 2017) raising performance levels and effective response to changes in the organizations' work environment, finally raising the level of confidence of employees in the organization, making them aware of the spirit of citizenship and belonging, and instilling a spirit of motivation in them with the aim of achieving outstanding performance. 2participatory leadership participation is a process through which the individual obtains greater freedom in making decisions within the scope of his work, while it is considered a process of mental and emotional integration of individuals in the conditions of the group that contribute to encouraging them to achieve its goals and share responsibility with them from a behavioral perspective (banjarnahor et al., 2018). participatory leadership is defined as "the process of leaders' participation of workers, by delegating leadership tasks, making appropriate decisions at the right time in an atmosphere of mutual respect, constructive cooperation, and proper planning in order to achieve the desired goals” (rogiest et al., 2018). the importance of participatory leadership appears because of its important role in achieving the goals of the organization. participatory leadership is considered one of the most important leadership styles due to its benefit from previous leadership styles, and it focused on the participation of employees in decision-making (sebastian & moon, 2017). nyambura, (2021) stressed that the importance of participatory leadership is through its ability to raise the morale of workers, which makes them more cooperative and responsive to orders necessary for implementation. (rhee & sigler, 2015) mentioned a number of aspects that highlight the importance of participatory leadership, as follows: 1. commitment to the principles of participatory leadership in organizations leads to the continuous development of the organization, which ensures its continuity, for its ability to apply the principles of permanent dialogues during decision-making away from the private interests of some of the organization's employees. 2. it is considered one of the most important administrative methods followed by modern organizations, as it meets the needs of advanced organizations and pushes their leaders to assume more responsibilities. in view of the loyalty, trust and mutual respect achieved by participatory leadership between leaders and workers, and workers among each other. 3. create an atmosphere of agreement and positivity among individuals at all levels within the organization. 4. the tasks of the employees are distributed in a way that guarantees the quality of the organization's outputs, especially by following the principles of leadership distribution among qualified employees, and giving them sufficient powers to achieve the organization's goals. 5. it works to develop the organization faster and better, and achieve competitive advantage at the level of international organizations. 3. democratic leadership democratic leadership is a leadership style that depends on the leader’s focus on basic foundations, the most prominent of which are taking into account human relations, participation, delegation of authority, and sound relations with employees and subordinates in the organization, as the practice of american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 37 www.americanjournal.org democratic leadership contributes to satisfying the needs and desires of workers, and providing them with opportunities to participate in thinking and expressing opinions in a psychological climate characterized by reassurance and a sense of freedom and comfort, which is reflected in their level of productivity towards work performance (maloş, 2012). democratic leadership leads to raising the morale of workers, doubling their productive capacity, as well as stimulating the spirit of initiative to carry out tasks, deeds and responsibilities with dedication, and developing the ability to show a spirit of creativity and innovation. a leader who understands the feelings of workers, is interested in knowing and realizing the problems facing them, and seeks to find appropriate solutions to solve them. the leader who seeks to satisfy the human, psychological and social needs and desires of workers, which drives them. to loyalty to him and to accomplish what he asks of them in high spirits (kilicoglu, 2018). the tasks or responsibilities entrusted to the employees of the organization, whatever their nature in terms of implementation, are carried out with a high degree of accuracy and speed, as the leader’s relationship is good with the employees, as the effectiveness will be high on their part. democratic leaders who care deeply about including all team members in the discussion and can work with a small but highly motivated team. the democratic style of leadership is the most effective (caillier, 2020). 4. servant leadership servant leadership is defined as “a practical philosophy that the leader adopts to support others, and seeks to serve them, by employing all available sources of power and harnessing them to help others” (lee et al., 2018). servant leadership is a style of leadership in which the leader seeks to carry out practices and tasks in order to develop individuals in order to develop the organization in the first place, through his use of authority in a fair and transparent manner. to achieve the general interest of working individuals, believing that his success is linked to hard and tireless work for and with others (aboramadan et al., 2022). the importance of the leader having a servant leadership style is evident in his ability to empower his workers instead of following a method of control and domination with them, in addition to his ability to follow all appropriate means and methods in convincing them of decisions related to work performance instead of following a policy of coercion and repression, as well as encouraging them in a soft and understanding manner. to participate and be creative in performing the tasks and activities entrusted to them, in order to achieve consensus in taking opinions within the work team, as he does not seek to obtain special privileges or personal interests, or to self-ranking, but rather he is always thinking about what is in the interest of the organization, so he always seeks to consider helping others in pursuit of organizational goals in general (jorge correia de sousa & van dierendonck, 2014). 2.2 organizational performance the business environment in this modern era is witnessing rapid changes in various fields (alghizzawi, 2019b), as well as challenges on the local and global scale as a result of technological, economic and knowledge development (alghizzawi, 2019a). therefore, the management of organizations must pay attention to following up the organizational performance, as the performance on an ongoing basis needs continuous evaluation in order to identify its strengths and then develop and develop it, and its shortcomings and then correct them in a timely manner (alawneh & al-zoubi, 2020; alghzawi et al., 2020). performance is the common denominator of the efforts of individuals working within any organization, and it is an essential concept for business organizations, whatever the nature of their american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 38 www.americanjournal.org work, as performance is mainly linked to the strength of the organization, and it comes as a result of successful management trends; it looks at optimal performance through emphasizing and insisting on administrative and operational practices that improve the overall performance of the organization (katzenbach & smith, 2015). organizational performance is an organization of all the efforts made by all parties in the organization, whether by management, leaders, or workers and employees, so the concept of performance is important and essential for all organizations in general (aloisi & de stefano, 2022). organizational performance is classified according to a set of criteria, which were identified by (aldalahmeh et al., 2018) with the following criteria: 1) criterion of the internal and external environment of the organization: the performance of any organization depends on the interaction between its internal and external environment, as the performance of the internal environment of the organization is pivotally linked to the quality of human resources performance or technical performance (methods, means, technical and technical methods, tools and mechanisms used in performing work) or financial (output), and everything the organization controls it, influences it, and is also affected by it in terms of all activities and functions, the most important of which are: production, administrative operations, financing, and others. thus, it is the result of interaction of all types of performance of systems in the organization. as for the performance of the external environment of the organization: it is represented by the performance of all the surrounding factors that affect, in one way or another, the performance of the organization, whether positively or negatively. 2) time standard: performance is classified according to time into the short term and the medium term, each of which relates to several aspects that all contribute to achieving the goals of the organization, so that performance is taken into account in the short term, which is the ability of the organization to generate outputs in accordance with the requirements of the external environment, and the efficiency of performing work, which is represented in the ratio of inputs and outputs, as well as achieving satisfaction through the interaction of individuals within a specific system, which in turn contributes to achieving psychological and social security for workers within the organization’s environment. to appropriate solutions. 3) functional criterion: this criterion is represented in the organization's performance of all aspects related to work performance and the achievement of the goals it seeks, which is represented in the organization's ability to improve its production level, and achieve the satisfaction of its clients, by building reputable relationships between them. in addition to the organization's ability to achieve financial balance, and to build an effective financial structure that achieves the greatest return on it from the benefits of profitability. in addition, the organization's ability to control the required quality standards in its services or products, in choosing the appropriate work method, providing an appropriate work environment, selecting qualified workers, and continuous periodic follow-up and evaluation. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 39 www.americanjournal.org 2.3 job satisfaction job satisfaction in the organizational psychology literature is the most extensively researched field, as various methods of employee satisfaction have been found by scholars and facilitated for the management of organizations; job satisfaction has a direct impact on the level of absenteeism, commitment, performance and productivity of workers (rahi et al., n.d.). moreover, job satisfaction improves the level of employee retention and reduces the cost of hiring new employees. moreover, the result of job dissatisfaction is to increase the cost of recruitment, selection and training, discourage existing employees and reduce the growth of the organization, and the lack of employee satisfaction is reflected negatively on the efficiency of the organization (al-shibly et al., 2019; alghizzawi et al., 2019; ali & farooqi, 2014; alnawafleh et al., 2019). the subject of job satisfaction is one of the important topics that preoccupied the thinking of scholars, specialists, and researchers in psychology and management, and given the psychological, social, and economic returns that accompany job satisfaction, and at the same time it is reflected in turn on the work and job commitment of employees in the organization, satisfaction represents the strongest returns and the greatest influence and is linked to some personal variables, including the type of motives, needs, incentives, job level, educational level, wages, etc. also, whenever there is a strong feeling among the worker that his work achieves great satisfaction for his needs, the more his feelings towards work will be positive, and whenever he thinks that his work does not achieve this appropriate satisfaction of his needs, the more he thinks that he his work deprives him of this satisfaction (mohammed et al., 2022). the importance of job satisfaction lies in what workers with high skills and distinguished competencies become, with what is called complete satisfaction with their presence in the organization and their affiliation with it, to become a title that expresses their job satisfaction, which increases their loyalty and achieves a competitive advantage and value for the organization, as the individual works within his organization between the work group and that in it, the role that he plays is determined, as he works through a set of internal feelings that give a clear picture of satisfaction with the work that he does, and satisfaction is the result of a group of different attitudes that the individual holds towards his profession and towards factors related to it and life in general. job satisfaction is alongside motivation the level of performance has a clear impact on organizing behavior and organizational commitment within the organization and raising its efficiency (amin, 2022). 3. methods the current study followed the approach based on reviewing the relevant previous literature (alghizzawi et al., 2018; rahi et al., 2019; salloum et al., 2021) in research structures related to job satisfaction, leadership, and finally organizational performance. 4. discussions through reviewing the previous studies, it is clear that all previous studies are studies that dealt with different topics (aboramadan et al., 2022; al-dalahmeh et al., 2018; ali & farooqi, 2014; amin, 2022; jorge correia de sousa & van dierendonck, 2014; lee et al., 2018; maloş, 2012; mohammed et al., 2022; nyambura, 2021) some of which dealt with the issue of leadership styles and job performance, and some of them dealt with the issue of leadership styles and job satisfaction, and some of them dealt with one style of leadership styles and job performance, and some dealt with a group of leadership styles and job performance, and we note from that that these studies differed in the goal that is only american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 40 www.americanjournal.org achieved while the current study is unique from previous studies in that it dealt with three variables that have multiple dimensions combined in one topic, which is the effect of leadership styles on organizational performance with the presence of job satisfaction as a mediating variable. 5. conclusions the leadership patterns at the level of job satisfaction exist in the presence of job satisfaction, where the existence of job satisfaction contributed to explaining the positive relationship between these two variables, and this result explains that the leadership style practiced by the leader in dealing with employees in the company leads to an increase in the level of organizational performance in terms of interest in the level of development. training, efficiency, effectiveness and quality. in other words, the leader’s practice of positive and appropriate leadership patterns in dealing with the employees of the company increases the level of their influence on him and their acceptance to perform their tasks and responsibilities. work in a spirit of dedication, loyalty and belonging, which makes them work with all their energies towards the performance of their work, in addition to doing everything possible in order to achieve the goals of the company in which they work, and this matter also expresses that these workers have a sense of job satisfaction, as they leaders' practice of positive leadership patterns with employees increases their level of satisfaction with work in the company, and this also motivates them to be responsible. jah perform their work in the best way. finally conclude from the foregoing that the leadership style followed by the leader in the organization in general has a significant impact on the performance of the organization. at the same time, the leadership style followed by the leader is the one that contributes to achieving the level of job satisfaction among the employees. the leader is the person directly responsible for dealing with the employees. it is the link between working individuals and the plans of the organization, and it is the basis around which the implementation of procedures and policies in the organization revolves. therefore, he must adopt leadership practices that support the positive force within the work environment, reduce the negative aspects, and provide workers with all safe environmental conditions that make them feel job satisfaction, and motivate and motivate them to perform their best towards their work in a distinctive way. 6. recommendation in light of the results reached; the study proposes a set of recommendations, after stating the findings of previous studies that looked at this field. accordingly, there is a need for managers in yemeni pharmaceutical companies to do everything necessary to increase the practice of transformational leadership because of its characteristics and characteristics that affect the behavior of leaders and their actions with all parties within the company's environment. in addition, it is necessary to focus on the practice of managing yemeni pharmaceutical companies towards involving employees in decisionmaking, due to the importance of participatory leadership in increasing employees' self-confidence, which in turn is reflected in achieving excellence in performance. finally, leaders in yemeni pharmaceutical companies must abide by the principle of delegation of authority; because it contributes to personal influence and persuasion, and is keen to take the opinions of workers, and gives them their importance in work, and gives them freedom of choice and believes in constructive and purposeful dialogue. american journal of business management, economics and banking volume 9 feb., 2023 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(2012). pulling the levers: transformational leadership, public service motivation, and mission valence. public administration review, 72(2), 206–215. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 40 www.americanjournal.org existing problems in increasing investment attractiveness in enterprises and ways to overcome them shayakubov shakhzod shakabilovich senior lecturer, department “valuation and investments”, tashkent institute of finance, tashkent city, uzbekistan g-mail; shaxzodbek19790109@gmail.com a b s t r a c t k e y w o r d s the main issue of the work of the article is the development of scientifically based proposals and recommendations to increase the investment attractiveness of joint-stock companies. the implementation of the suggestions and recommendations presented in the research work can serve to further increase the processes of introducing foreign and local investments into joint-stock companies. the hypothesis of the research is to positively solve the problems of ensuring investment attractiveness by developing an investment strategy, to develop practical proposals based on the effective use of advanced foreign experiences in this field, and to scientifically substantiate the effect of dividend policy on increasing investment attractiveness. innovative activity, innovative product, investment, investors, companies, investment risk, joint stock company, investment attraction. introduction: in the process of globalization of the countries of the world, strengthening consistent efforts to reform and modernize the economy in uzbekistan and raising them to a new, higher level is a priority task. unconditional implementation of these tasks is ultimately aimed at increasing the development of our country and increasing the well-being of our people, and the investment attractiveness of joint-stock companies is gaining importance as a decisive factor in strengthening the export potential. the decree of president shavkat mirziyoyev “on the strategy of actions for the further development of the republic of uzbekistan” started a new stage in determining the priority directions of economic development and liberalization. the main goal of this decree is to increase the effectiveness of the reforms implemented in our country, to create conditions for the development of the state and society in all aspects. in particular, in the third direction of this historically significant document for the next five years, the issue of ensuring reliable protection of the rights and guarantees of private property, eliminating all kinds of obstacles and restrictions, and giving complete freedom to the further development of the business and investment environment special importance is focused [1]. according to economists e.sojli and v.t.vinglar, the investment risk is assessed and determined in the context of a comprehensive and in-depth analysis of the investment environment. investment climate mailto:shaxzodbek19790109@gmail.com american journal of business management, economics and banking volume 13 june, 2023 p a g e | 41 www.americanjournal.org and risk levels are inversely related. the more favorable the investment environment is, the lower the investor's business risk is, and this activates the inflow of investors. conversely, if the investment environment is unfavorable, the level of risk is high. this leads to an increase in spending on the part of the recipient of the investment. the state of the investment environment is important not only for the investor, but also for the recipient of the investment [2]. 2. literature review regarding the concept of “investment attractiveness”, definitions were given by many foreign and local scientists, among them, according to the opinion of famous economists m. glagoleva and s. belogura, “the investment attractiveness of a country or region and the attractiveness of financial investments are known the factors determining the level are a generalization of the description of the political, social, economic and legal conditions of the state” [3]. the concept of “innovation” is used to mean investing in something new. the concept of innovation entered the economy in the early twentieth century. australian economist j. schumpeter was the first to address innovation issues and give a detailed description of the innovation process. in the economic literature, many authors have different approaches to the concept of “innovation”. many authors consider innovation to be economically feasible, meaning that new resources are created or existing ones are used in an unconventional way [4]. according to a. busigin, innovation is the renewal of fixed capital or products using science, technology and engineering [5]. according to r. fatkhutdinov, innovation is the end result of innovation, and the change of management of the object is effective in social, economic, scientific, technical, environmental and other ways [6]. foreign economists b. needles, h. anderson, and d. caldwell consider “intangible assets to be intangible assets that constitute capital investment in acquired assets” [7]. prof. a. sheremet defines intangible assets in general as follows: assets that represent a legal and other legal relationship that has no intangible value, bring profit (income) to its owner for a certain period of time, create convenience for users [8]. innovation is the process of ensuring the systematic and continuous introduction of all innovations in any field, regardless of the field of innovation, published innovations, technical and technological advances and technological processes, product supply and other areas [9]. 3. research methodology in this article, the scientific works and articles of the economists of uzbekistan and foreign countries devoted to the analysis of the sources representing the role and importance of the investment attractiveness of the enterprise in the development of the country’s economy are studied. economic research methods such as graphical grouping, economic-statistical analysis and synthesis, logical reasoning were widely used as a research methodology. 4. analysis and discussion of results today, in many developed countries, there are special firms and organizations that study the investment environment, assess its attractiveness, and provide accurate conclusions and information for investors. for example, prestigious information services of countries such as switzerland and germany rate each country from "0" to assess the economic, political and social status of the country. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 42 www.americanjournal.org it uses the "beri" (business environment risk index) indicator, which takes into account 15 important indicators evaluated on a scale of up to 12 points (0 satisfactory and 12 extremely convenient). figure 1.2 below shows the beri index based on its importance for making investment decisions. among the indicators included in the beri index, political stability (12 points) is important. in general, "beri" service is an organization that has gained a great reputation in this regard. this organization analyzes the investment environment in capital importing countries and determines the risk level of investments. "beri" service, through the press, determines the level of risk and risk of investing in foreign countries by investors with various indices. organizations providing such services are currently assessing the investment climate in more than 55 capital-importing countries. the higher the country's investment climate score, the more stable it is [10]. let's take a look at the world bank's approach to assessing the investment environment. the world bank published "how to create an investment climate for all?" in the annual report on the topic (on the development of the world economy), it is said that "the government and relevant organizations support them in order to develop entrepreneurship and a successful market". in this report, it was noted that the investment environment creates opportunities and incentives for companies to invest in production, create jobs and expand their activities. according to the approach of the world bank, the factors affecting the country's investment environment are as follows uncertainty of economic policy and legal-normative practice; level of corruption; the quality of the judicial system; level of crime; "tax burden" and system of legal regulation of taxation; the possibility of obtaining financial resources and the cost of financing; level and quality of electricity supply; skill level of workers and quality of labor legislation. in the economic literature, there is a wide field of description of the investment environment and its calculation methods6. in our opinion, it is appropriate to dwell on its following definition: investment environment is the environment in which investment processes take place. it is formed under the influence of political, economic, legal, social and other factors that determine the conditions of investment activity and the level of investment risk in the region. uzbekistan is a country based, first of all, on political stability, confidence in the future, gradual progress of reforms in all spheres of social and political life. the need to develop an investment strategy of the enterprise is determined by the formation of financial resources and their effective use in the conditions of changes in external and internal environmental conditions. effective investment management can be organized only on the basis of a clear investment strategy adapted to possible changes in the external investment environment. also, it should not be forgotten that the conflicting investment decisions of individual departments of the enterprise in the internal environment also cause a decrease in the efficiency of investment activity [11]. for each stage of the life cycle of the enterprise, the investment strategy, which describes the specific level of investment activity, the directions and forms of investment activity, the characteristics of the formation of investment resources, allows to adapt the investment activity of the enterprise to changes in its economic development. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 43 www.americanjournal.org the process of developing an investment strategy requires defining the strategic management objects of the enterprise. such objects of investment activities include: integrated enterprise; strategic zones of economic management; strategic centers. the strategic zone of economic management is an independent economy that performs its activities among closely related sectors united on the basis of common demand or common use of raw materials and technologies within the enterprise reflects the segment. a strategic investment center is an independent structural unit of an enterprise that specializes in performing specific functions in a separate strategic zone of economic management or provides effective economic activity. the period of investment strategy formation depends on: the duration of the period adopted for the formation of the general strategy of the enterprise's development the period of the investment strategy should not exceed this limit; opportunities to forecast the state of the economy and investment market the investment strategy of large enterprises in developed countries is developed for 10-15 years; and in conditions of economic instability, it should not exceed 3-5 years on average; industry characteristics of the enterprise the period of investment strategy formation in retail trade, consumer goods production is shorter (3-5 years in developed countries); longer (5-10 years) in the field of production of means of production, in the field of mineral resources; the longest period is set for institutional investors (over 10 years); figure 1. stages of development of enterprise investment strategy [12] development of enterprise investment strategy stages evaluating the effectiveness of developed investment strategies formation of investment policy in the main areas of investment activity determining the strategic directions of the formation of investment resources basing strategic directions and forms of investment activity formation of strategic goals of investment activity determining the general period of investment strategy formation american journal of business management, economics and banking volume 13 june, 2023 p a g e | 44 www.americanjournal.org the investment policy reflects the form of implementation of the enterprise's investment strategy at separate stages of its implementation in the section of the most important areas of investment activity. the difference between investment policy and investment strategy is formed in terms of specific activities that require effective management to achieve the main strategic goals. in our opinion, the shareholding is calculated on the basis of the company's financial report and determined on the basis of traditional ratios intended for external users, financial stability indicators cannot fully describe the attractiveness of investments, because they are too simple and show the financial condition of the company does not reveal the true value. the presence of income also does not allow to objectively assess the activity of the society and fully express the investment attractiveness. because, when there are high income indicators, society can have low profitability indicators. that is, the income received may be enough to cover expenses. figure 2. structural framework of the global competitiveness index [13] research on gci indicators shows that they more accurately assess the investment attractiveness of an economy. for example, as part of the ranking using international statistics and a survey of large company executives: quality of institutions, infrastructure, macroeconomic stability, health and primary global competitiveness index the main condition of the economy based on innovation 11innovation and complexity factors subindex 12-column 11. business competitiveness 13-column 12. innovation the basis of the economy that ensures efficiency factor-based economy efficiency improvement sub-index column 5. higher education and training column 6. the efficiency of the commodity market is the 7th pillar. labor market efficiency column 8. development of the financial market is the 9th pillar. technological level column 10. market size 1-basic requirements subindex 2-column 1. institutions 3-column 2. infrastructure 4-column 3. macroeconomic environment 5-column 4. health and primary education american journal of business management, economics and banking volume 13 june, 2023 p a g e | 45 www.americanjournal.org education, higher education and vocational indicators such as readiness, efficiency of the goods and services market, efficiency of the labor market, development of the financial market, level of technological development, size of the domestic market, competitiveness of companies, innovative potential are evaluated. similar situations apply to the indicators of other global indices indicated above. 5. conclusions and suggestions investment attractiveness for an investor is a comprehensive indicator that includes indicators of financial stability and profitability. it is to give quantitative and qualitative assessments of the financial and economic activities of joint-stock companies. in order to ensure the stable growth of the economy of our republic, it is necessary to deepen structural changes, develop high-tech production, and modernize banking activities. this requires large investments and plays an important role in the activity of commercial banks in this process. because commercial banks are the main investment institutions in our country [14]. in banking practice, the concept of investment basically means putting bank funds in a long-term area for the purpose of earning income. all banking operations related to banks' allocation of funds to investments are called investment activities of banks. for example, their investment activities include investments in securities, as well as lending operations to the capital funds of enterprises. therefore, commercial banks direct their funds to real assets along with financial assets. it is known that the active participation of commercial banks in investment processes plays an important role in the modernization of the economy and the growth of the country's economic potential. 6. literatura/reference 1. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis (december 29, 2020). 2. elvira sojli, wing wah tham. “the impact of foreign government investments: sovereign wealth fund investments in the united states” in institutional investors in global capital markets. published online: 8 march 2015; 207-243. www.scopus.com 3. glagolev p., belogur s. (1997) investment space in russia // russian investment bulletin. no. 3. from 15. 4. a.v. busygin. entrepreneurship. – m.: work, 2001. 176 p. 5. r.a.fatkhutdinov. innovative management. m.: synthesis. 2000. 9 p. 6. needles b., anderson h., caldwell d. principles of accounting. – m.: “finance and statistics”, 1996. – p. 227. 7. sheremet a., rakhman z. accounting in a market economy. m.: “infra – m”, 1996. p. 135. 8. shakabilovich s. s., bakhtiyorovich o. b. theoretical fundamentals of improving the investment environment attractive in reducing investment risks //texas journal of multidisciplinary studies. – 2022. – т. 6. – с. 67-72. 9. mustafakulov sh.i. attractiveness of the investment environment: theory, methodology and practice. monograph t., 2017 y. pages 67-68. 10. shakabilovich s. s., bakhtiyorovich o. b. theoretical fundamentals of improving the investment environment attractive in reducing investment risks //texas journal of multidisciplinary studies. – 2022. – т. 6. – с. 67-72. 11. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy http://www.scopus.com/ american journal of business management, economics and banking volume 13 june, 2023 p a g e | 46 www.americanjournal.org //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. 12. it was prepared by the author using information from the literature on economics and finance. 13. bakhtiyor o‘g‘li o. b. theoretical aspects and methods of increasing regional investment attractiveness //e global congress. – 2023. – №. 4. – с. 98-101. 14. butaev j., ochilov b. the role of the investment environment in attracting foreign investment //asian journal of multidimensional research. – 2021. – т. 10. – №. 5. – с. 687697. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 123 www.americanjournal.org evaluation of the efficiency of the financial performance of the islamic insurance company in jordan with a proposed model for the establishment of an islamic insurance company in iraq zahra khaled rahim al-mustansiriya university, college of administration and economics zahraakhalied96@uomustansiriyah.edu.iq mother. dr. ahmed sabih attia al-mustansiriya university, college of administration and economics dr.ahmed_sabeeh@uomustansiriyah.edu.iq a b s t r a c t k e y w o r d s the increasing risks to which man is exposed and what he owns necessitates that he seeks to find ways to mitigate the negative effects of these risks. he resorted initially to saving and mutual support, but with the development of economic and social measures, a new idea was launched based on collective solidarity, and its main goal is to cooperate in covering damages that afflict a member of the group and guarantee his safety, and financial institutions have been established to practice insurance work, which requires the availability of two things: a legal relationship built between the insurer (the insurance company) and the insured (the insurance applicant) and technical and legal foundations that allow the establishment of such a relationship. with this development, the scope of the work of these companies and the methods of covering them led to the idea of establishing islamic insurance companies that seek to attract shareholders who refuse to resort to traditional companies for fear of falling into legal problems. the research aimed to identify the concepts related to the insurance sector and the mechanisms of work of the insurance companies as well as to focus on the islamic insurance sector and propose mechanisms to activate the activity of the islamic insurance companies in iraq by proposing a model that simulates the traditional companies. one of the important sectors, whether commercial or islamic, is one of the urgent necessities that protect members of society from various dangers or reduce them as much as possible, and then recommended a set of recommendations, the most important of which are: encouraging the establishment of traditional and islamic iraqi insurance companies working side by side, with the aim of increasing competition between these institutions from in order to compete in providing the best insurance services in a way that enhances the preservation of economic projects and protects them from various risks. financial analysis, jordanian islamic insurance sector, a proposed model for an islamic insurance company in iraq. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 124 www.americanjournal.org introduction the insurance system in the world has witnessed great development in recent times, as it is among the most important foundations that work to achieve security and stability for the individual and projects and also contributes to supporting economic and social development, as insurance is the best way to protect property and individuals from the various risks to which they are exposed. the islamic insurance system arose, which aims for cooperation and solidarity among the members of society as a complement and competitor to commercial (traditional) insurance, which in turn aims for profit and directs capital owners in investments in this sector. however, in the iraqi insurance market there are no islamic (symbiotic) insurance companies, trying to search making a comparison from the experience of the kingdom of jordan, which is similar to iraq, being a developing country as well, in how islamic side grows within its insurance sector, through analyzing and evaluating the efficiency of the financial performance and the islamic insurance company within the insurance sector in jordan, and accordingly, how to develop the islamic insurance sector is suggested (symbiotic activity) and try to spread insurance culture and awareness in iraq. 1research methodology 1-2research problem the insurance sector in developing countries did not want to play a role similar to the performance of the insurance sector in developed countries, and this comes either because of the low levels of insurance culture or because of the decline in individuals contracting with insurance companies for religious reasons related to the islamic religion, especially in iraq, and the iraqi insurance market is devoid of islamic insurance companies. 1-3the importance of research the importance of the research lies in the fact that it examines the mechanisms of the insurance sector's work, the islamic insurance is unique, and the possibilities of exploiting economic resources to be employed in islamic insurance and solidarity companies. 1-4research objective the research aims to deliver insurance service and insurance protection to a wider area than is currently in iraq in order to achieve efficient exploitation of resources, reduce alternative opportunities, and evaluate the efficiency of the financial performance of commercial and islamic insurance companies to know the most important strengths and weaknesses. 1-5research hypothesis the research stems from the hypothesis that the involvement of individuals in contracting with insurance companies of an islamic nature would the increase insurance business, activate the levels of performance of the insurance sector, and enhance its role in keeping pace with economic development in the islamic world. 1-6research methodology in order to reach the validity of the hypothesis from which the research was launched, it relied on the use of deductive and inductive methods in the analysis. starting with particles, down to the overall american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 125 www.americanjournal.org conclusions, through analyzing and evaluating the efficiency of the financial performance of the jordanian islamic insurance company, down to the extent of this company’s ability to influence economic activity in general and its ability to be financially sustainable. 1-7research method the research adopted the descriptive method, as well as the use of the financial analysis method for the data. 1-8limitations of research aspatial boundaries: the islamic insurance sector in jordan (the islamic insurance company) was chosen. btemporal limits: the period between (2011-2020). 2theoretical side of the research 2-1evaluate the financial performance 2-2evaluation of financial performance is defined as a knowledge of what has been accomplished based on work controls, as through evaluation criteria are set for evaluating financial performance based on the planning and strategic objectives of the organization, which depend on methods of performance evaluation as a guide, monitor and control of the efforts of workers in all administrative levels in order to achieve the company's strategic objectives (poster & streib, 2005, p;46). 2-3the concept of islamic insurance: islamic insurance (takaful) stipulates that it is a group insurance contract under which each subscriber undertakes to pay a certain amount with the intention of solidarity and solidarity with other participants to compensate those affected by them on the basis of a donation. the management of insurance operations is handled by a company specializing in insurance in the capacity of an agent. with a known wage. (melhem, 2012: 12) 2-4elements of the islamic insurance contract elements of an islamic insurance contract 1. the contracting parties, namely: athe insurer (the company) bthe insured (the insurance applicant) the two parties are committed to fulfilling the requirements of financial contracts, including the ability to pay, as in commercial insurance the insurance company is the company, while in cooperative insurance the insurer is the association and in the current islamic insurance the insurer is the insurance account, the group insurance fund for participants, and any insurance an islamic licensee for companies, acts as an agent for such an account while the insured are either individuals or legal entities. (46:2012, alhumoudi) 2. the insured risk: it is the contingent future event because it may or may not occur, without its occurrence or non-occurrence dependent on the will of one of the contracting parties (the insured and the company), such as the sinking of the insured goods. 3. insurance premium: it is the subject of the insured’s obligation, and it means the financial amount that the insured pays to the cooperative insurance fund under the insurance contract. the amount of the insurance premium is determined by an agreement between the company and the insured. the most important factors influencing the determination of the amount of the insurance premium: are the amount of insurance, the risk insured from, and the duration of the insurance premium. insurance. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 126 www.americanjournal.org 4. the amount of insurance: it is the subject matter of the insurance company’s obligation on behalf of the insured, and it is the responsibility of the company in the event of the occurrence of the insured risk, as the company undertakes, according to the insurance contract, to pay the insured, who is appointed by him on behalf of the insured, the insurance amount when the insured risk occurs. (mulhem, 2012: 24-25) 3the practical side of the research first: profitability ratio profitability is the indicator that reflects the possibility and continuity of companies in the insurance market. in addition, this indicator motivates investors in making their decisions towards companies, as in the equation: profitability ratio = net income / total assets x 100% table (1): profitability percentage in the islamic insurance company (2011-2020) years net income jordanian dinar (1) the total assets jordanian dinars (2) profitability (%) 1/2 2011 558309 23396678 2.386 2012 725000 26829296 2.702 2013 1008184 30336874 3.323 2014 1080947 33635713 3.214 2015 1787628 37212247 4.804 2016 1863302 37817839 4.927 2017 2002246 39989660 5.007 2018 1114427 40339317 2.763 2019 1180916 39789389 2.968 2020 1732951 41552507 4.171 arithmetic average % 3.627% source: prepared by researchers based on the consolidated financial statements of the islamic insurance company for the period (2011-2020). the profitability ratio in table (1) shows that the lowest profitability ratio was (2.39%) in 2011, which is an acceptable rate, and the maximum was (5.00%) in 2017, which shows the efficiency of the financial investment policy of this company, which will lead to an increase in retained earnings and reflect the data of the table also indicates that the profitability rates decreased in the years 2018 and 2019, as they amounted to (2.76% and 2.97%), respectively, and the reason for this is due to the emergence of (covid_19) in 2019, although they are acceptable rates and exceed the acceptable minimum of (2%), and in general the arithmetic average of the profitability ratios reached (3.637%) during the research period (2011-2020), which is a percentage that exceeds the acceptable limit and is considered a high percentage, as the company’s investment of 100 jordanian dinars from its assets will generate a net income of 3.63 jordanian dinars, which is what it indicates that this company has the ability to sustain its current and future work, increase its capital, pay shareholders profits and face losses, and based on the foregoing, this company has an efficient performance. figure (1) indicates the percentage of profitability in the islamic insurance company during the period (2011-2020). american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 127 www.americanjournal.org source: from the work of the researchers based on the data of table (1). second: liquidity ratio it is the ratio that represents the amount of cash or assets that can be converted into cash within a short period, as this ratio is used as a tool for evaluating the company's credit position, which usually expresses the company's ability to fulfill its short-term obligations, and the liquidity ratio is calculated according to the following formula: liquidity ratio = current liquid assets / total assets x 100% table (2): liquidity ratios in the islamic insurance company for the period (2011-2020) years current assets jordanian dinar (1) the total assets jordanian dinar (2) liquidity % ½ 2011 3217043 23396678 13.75 2012 3554881 26829296 13.25 2013 3943794 30336874 13.00 2014 4708999 33635713 14.00 2015 4727020 37212247 12.703 2016 5906579 37817839 15.618 2017 5653654 39989660 14.138 2018 6263231 40339317 15.52 2019 6476571 39789389 16.279 2020 6156058 41552507 14.815 arithmetic average % 14.307% source: prepared by researchers based on the data of the financial statements of the islamic insurance company for the years of study. table (2) shows that the liquidity ratios reached the lowest (12.703%) in 2015, which is the percentage of the decrease in the amount of current assets amounting to (4727020) jordanian dinars, which is the lowest compared to the total assets amounting to (37212247) jordanian dinars, and the liquidity ratio reached its maximum (16.279%) in the year 2019 as a result of the increase in the volume of current 0.000 1.000 2.000 3.000 4.000 5.000 6.000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % p ro fi ta b ili ty r at io s the years figure (1) profitability ratios in the islamic insurance company for the period (2011-2020) (%) american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 128 www.americanjournal.org assets amounting to (6476571) jordanian dinars compared to the total assets amounting to (39784384) jordanian dinars, and the liquidity ratio fluctuated between these two ratios, and the liquidity ratio in this company reflects that it does not prefer to keep a large percentage of liquidity in order to achieve safety and the policy of this company is reflected positively on its revenues by employing its money in order to achieve a greater return, and the arithmetic average of the liquidity ratio in this company indicates that it is a small percentage, as it constituted (14.307%) during the period (2011-2020) and investing money to achieve greater returns. accordingly, this company is considered a company with good performance and efficient management. figure (2) indicates the percentage of liquidity in the islamic insurance company for the period (2011-2020). source: the researcher's work, based on the data of table (2). third: analysis of the financing structure of the company financial leverage ratio (debt ratio) if companies are unable to pay their debts and do not find lenders, then they are exposed to bankruptcy, so financial leverage is used to measure the extent to which the company's assets are financed with debt and the formula that expresses the indebtedness ratio: financial leverage ratio = total liabilities / total assets x 100% table (3): the financial leverage ratio (indebtedness ratio) in the islamic insurance company for the period (2011-2020) years total liabilities jordanian dinar (1) the total assets jordanian dinars (2) indebtedness % ½ 2011 8036759 23396678 34.350 2012 10882430 26829296 40.562 2013 13475054 30336874 44.418 2014 14992081 33635713 44.572 2015 18681545 37212247 50.203 2016 18223319 37817839 48.187 2017 18077696 39989660 45.206 2018 19635532 40339317 48.676 2019 19257044 39789389 48.404 2020 19132920 41552507 46.045 average % 45.06 % source: from the work of the researchers based on the data of table (3) 0.000 5.000 10.000 15.000 20.000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % li q u id it y ra ti o s the years figure (2) liquidity ratios in the islamic insurance company for the period (20112020) (%) american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 129 www.americanjournal.org table (3) data indicates that the lowest indebtedness ratio amounted to (34.35%) in the year 2011, and its maximum amounted to (50.20%) in the year (2015), and the low ratio indicates that the company resorted to self-financing of its assets, as the total liabilities in this year amounted to (8036759) jordanian dinars, and this ratio means, on the other hand, that the company is financially conservative and resorts to shareholders’ rights to finance its operations. as for the high value of this ratio, it means an increase in the company’s obligations, as these obligations amounted to (18,681,544) jordanian dinars, and this increase indicates that the company resorts to funds it is noted from the data of the table that the fluctuation of the indebtedness ratio is low in this company, and as long as the arithmetic average of the indebtedness ratio has reached (45.06%), which is less than 50%, therefore, this company operates in a safe situation and works to achieve a balance between debts (the company's future obligations) towards its creditors and assets, and it has the ability to meet its future obligations. chart (3) indicates the indebtedness ratio of the islamic insurance company for the period (2011-2020). source: from the work of the researchers based on the data of table (3) 3-2 calculating the insurance surplus for the jordanian islamic insurance company the primary insurance surplus for the islamic insurance company is calculated according to the formula (contributions or premiums compensation). the insurance surplus represents the total profits of the company's insurance operations. table (4) shows the insurance surplus and the annual rate of change for the islamic insurance company. table (4): primary insurance surplus (insurance profits) for the islamic insurance company for the period (2011-2020) jordanian dinar years subscriptions rate of change % the compensation the rate of compensation the insurance surplus (insurance profits) rate of change % 2011 10051275 6930634 3120641 2012 12207956 21.4 % 6156912 11.1% 6051044 93.9 % 2013 13469229 10.3 % 7204394 17% 6264835 3.5% 2014 15125172 12.2 % 7941213 10.2 % 7183959 14.6 % 2015 15964840 5.5% 7887501 0.6% 8077339 12.4 % 2016 16323539 2.2% 9907369 25.6 % 6416170 20.5% 2017 16770902 2.7% 10877033 9.7% 5893869 8.1% 2018 16686975 0.5% 10369750 4.6% 6317225 7.1% 2019 17086533 2.3% 11733026 13.1 % 5353507 15.2% 2020 15385732 9.9% 8949520 23.7% 6436212 20.2 % 0.000 20.000 40.000 60.000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020in d e b te d n es s % the years figure (3) the indebtedness ratio in the islamic insurance company for the period (2011-2020) (%) american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 130 www.americanjournal.org source: prepared by researchers based on the consolidated financial statements of the islamic insurance company for the period (2011-2020). it is noted from table (4) that the total contributions gradually increased, as it exceeded (10) million jordanian dinars in the year (2011), to record the highest value of contributions (17) million jordanian dinars in the year (2019), at an annual rate of change of (2.3%) compared to the previous year. also, the paid compensations recorded a gradual increase, as it amounted to (6.9) million jordanian dinars in the year (2011), reaching the highest value (of 11.7) million jordanian dinars in the year (2019), at a positive annual rate of change (13.1%), then it recorded in recent years a difference between rise and fall to amount to (8.9) million jordanian dinars in the year (2020) at a negative annual rate of change of (-23.7%) over the previous year. as for the value of the insurance surplus, which is calculated from the difference between contributions (premiums) and paid compensations, it amounted to (3.12) million jordanian dinars year (2011) to reach a maximum of (8) million jordanian dinars in the year (2015), as the total contributions were greater than the paid compensations and the annual rate of change was (12.4%) positive from the previous year, to record after that a varying increase and decrease in the insurance surplus and the rate of change also varies annually. 4the reality of islamic insurance (takaful) in iraq basis and ambition recently, the importance of islamic insurance (takaful) has emerged as one of the types of insurance that are characterized by characteristics that commercial (traditional) insurance lacks. the framework for confronting risks, especially since it is an insurance system that does not violate the principles of islamic law. the islamic insurance industry in the world has witnessed remarkable growth and development during the past few years, as it enjoys a great place in the global insurance market and has become a strong competitor to commercial (traditional) insurance. the type of insurance in islamic societies and the multiplicity of parties dealing with it, and its diversity, but this industry has not found its way into iraqi society so far, despite the fact that central bank resolution no. (66) of (2019) has included the position on issuing controls for organizing solidarity in order to support islamic banking, and indeed it was decided to establish an islamic takaful company with a capital of (15) billion iraqi dinars and with the participation of all islamic banks, based on the provisions of article (15) of islamic banking law no. (43) of (2005). 4-1the proposed application model for the islamic insurance company the proposed company operates in accordance with the provisions of islamic sharia and its capital is (15) billion iraqi dinars, as we assume that the volume of annual contributions and compensation increases by 10%, and assuming that the economic, political, and security conditions are stable and therefore the (primary) insurance surplus will be as in table (5) the following: table (5): proposal for contributions, compensation, and insurance surplus (initial) (iraqi dinar) years subscriptions compensation primary insurance surplus (insurance profits) first 20000000 6000000 14000000 second 22000000 6600000 15400000 third 24200000 7260000 16900000 fourth 26600000 7986000 18630000 fifth 29282000 8780000 20497400 source: the work of the researchers according to the proposed vision american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 131 www.americanjournal.org table (5) shows the size of the proposed contributions and compensations, which increases gradually by 10%. since the company started its work in the first year, we suggest that the volume of contributions is (20) billion iraqi dinars and compensation is (6) billion iraqi dinars, then it continues to increase in the subsequent years as it reached the volume of contributions in the fifth year is (29) billion iraqi dinars, and compensation is (8) billion iraqi dinars, in order to increase the number of participants in the types of insurance that it offers, such as insurance for the various types of islamic insurance models. expenses and provisions related to insurance operations, as we assume that the surplus in the first year is (14) billion iraqi dinars to increase gradually to reach in the fifth year (20) billion iraqi dinars, which is a relatively good proposed amount to achieve profits from cash surpluses with the islamic insurance company at the beginning of its work it is derived from the percentage and proportionality of the compensation granted by the traditional insurance companies, as the company compensates those affected in accordance with the provisions of islamic sharia, and thus it has a surplus for insurance. an appropriate initial investment contributes a great deal to the survival of the company operating in a competitive market side by side with traditional insurance companies, and even attracts larger numbers of subscribers in the scope of its business as it operates in accordance with islamic sharia. 4-2the size of the proposed investments and profits for the islamic insurance company as a result of the size of the initial profits that will be achieved as a result of the primary insurance business practiced by the company, it will generate appropriate initial insurance profits, as in the previous table (5), and the desire of the company to expand and develop its capital, it will resort to aspects of investment in accordance with islamic law, such as investing in islamic deposits in islamic banks or invest its resources in the investment aspects it deems appropriate, and assuming that the volume of profits it achieves increases annually by 10%, then the volume of total profits will be according to the following table: table (6): the size of the proposed amounts and investments for the islamic insurance company for a period of five years thousand iraqi dinars years real estate sector the productive sector (industrial, agricultural) the banking sector the financial markets, the volume of investment the volume of profits the volume of investment the volume of profits the volume of investment the volume of profits the volume of investment the volume of profits first year 3000000 330000 2000000 220000 5000000 550000 6000000 660000 second year 3350000 368500 2100000 231000 5200000 572000 6800000 748000 third year 3510000 386100 2300000 253000 6200000 682000 6930000 762300 fourth year 3820000 420200 2550000 280500 6330000 693300 7640000 840400 fifth year 4100000 451000 2870000 315700 6820000 750200 8707400 957814 source: prepared by researchers based on the proposed vision american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 132 www.americanjournal.org it appears from table (6) that the size of the estimated profits is assumed to increase gradually by (10%) annually, assuming that they were invested in various profit-generating sectors such as the real estate, banking, production and securities sectors, whether the investment was entirely or through joint investment, since the total invested funds = the sum of the primary insurance surplus + a small part of the capital, noting that the volume of investment for the agricultural and productive sector was assumed in the first year at an amount of (3) and (2) billion iraqi dinars, respectively, either, as for the estimated profit, it amounted to (330 ), (220) million iraqi dinars, to raise the volume of investment significantly, as it reached in the fifth year by (4.1) billion iraqi dinars, and the amount of estimated profit was (451) million iraqi dinars for the real estate sector, while the productive sector increased the volume of investment in the fifth year to reach (2.8) billion iraqi dinars, bringing the estimated profit for investment to (315) million iraqi dinars. 4-3the total amounts of investments and proposed profits in the invested sectors of the islamic insurance company table (7) shows the total investments and proposed profits in all invested sectors of the islamic insurance company for a period of five years. table (7): total investment amounts and proposed profits for the sectors invested in the islamic insurance company for a period of five years (thousand iraqi dinars) years investment profit first 16000000 1760000 second 16400000 1919500 third 18940000 2083400 fourth 20634000 2234400 fifth 22497400 2474714 total 94471400 10472014 source: prepared by researchers based on the proposed vision. 4-4the size of the total profits (insurance and non-insurance) proposed for the islamic insurance company after calculating insurance profits (insurance surplus) and non-insurance profits as a result of investment in different sectors, we extract the size of the total profits (insurance and non-insurance) proposed for the islamic insurance company for a period of five years. table (8) shows the total profits of the proposed islamic insurance company, as follows: table (8): the total profits of the islamic insurance company for a period of five years (thousand iraqi dinars) years insurance profits non-insurance investment profits total profits first 16,000,000 1760,000 17,760,000 second 16400000 1919500 18319500 third 18940000 2083400 21023400 fourth 20634000 2234400 22868400 fifth 22497400 2474714 24972114 source: prepared by the researcher based on the activities proposed for the company american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 133 www.americanjournal.org it is noted from table (8) that the volume of total profits resulting from the sum of insurance profits (insurance surplus) and non-insurance investment profits in various aspects of investment in accordance with the provisions of islamic sharia law increases during the proposed five years with the increase in investments, and this indicates that the total profits will be feasible and the company is operating to develop and increase profitability at a relatively good level, and it will stimulate other islamic insurance companies to enter this industry, and thus it will compete with traditional insurance companies, and this competition will create or develop the insurance service because of the competition, as insurance companies will seek to provide better services. conclusions 1. islamic insurance companies are a complimentary link to the islamic economy represented by islamic banks and islamic banks, as the proliferation of takaful insurance companies and their expansion in global markets and their fulfillment of their duties in risk management contribute effectively to supporting the wheel of the national economy. 2. an analysis of the financial performance of the jordanian islamic insurance company shows that it enjoys good financial performance, and this indicates that islamic insurance companies are among the financial institutions that can compete in the insurance market. recommendations 1. activating insurance participation by individuals and the business sector, by spreading insurance awareness and demonstrating the importance of resorting to insurance companies for various economic activities in order to mitigate the severity of the risks that the individual may be exposed to personally. 2. encouraging the establishment of traditional and islamic iraqi insurance companies working side by side with the aim of increasing competition between these institutions in order to compete in providing the best insurance services in a manner that enhances the preservation of economic projects and their protection from various risks. 3. ensuring the development of the role of the sharia supervisory board and the need to issue new regulations and laws that regulate the work of islamic insurance companies in accordance with the principles of islamic sharia, whether internal or external. sources 1melhem, ahmed salem, islamic insurance, a legal study showing the perception of cooperative insurance and its practical practices in islamic insurance companies, dar al-thaqafa for publication and distribution, first edition, 2012. 1poster, theodore h. & sterib, gregory, elements of strategic planning and management in municipal government status after two decades, 2005. 2-alhumoudi, youssef abdullah, islamic insurance takaful and ist applications in saudi arabia, a thesis submitted for the degree of doctor of philosophy, brunel university, 2012 2eling, m and holzmuller, l, capital requirements, on ask basis in u.s., the insurance institute, st. gallen switzer land, une, 2008. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 80 www.americanjournal.org theoretical principles of application of project management in innovative activity ravshanbek a. yusupov, philosophy doctor, docent, head of department implementation of masters’ program of the graduate school of business and entrepreneurship, yusupovravshanbek6@gmail.com a b s t r a c t k e y w o r d s this article describes the wide-ranging socioeconomic changes and reforms taking place in the modern economy, the need to improve the activities of economic entities on the basis of modern mechanisms, current problematic issues, changes and occurrences in the conditions of market relations. that it is the demand of the times to anticipate the opportunities that may come, to develop economic policy and strategy, and to provide these changes with a new method, a new technique technology. it is this term "innovation" that today is dedicated to the classification of "innovation", "innovative activity", "innovative projects". innovation, technique and technology, economy, idea, marketing, production, socio-economic problems, motivation, internal management system. introduction at the current stage of the development of the economy of uzbekistan, innovation is becoming the main factor of human development and economic growth. the importance of the influence of innovations on the functioning of individual enterprises and the economy as a whole has been researched and studied by domestic and foreign economists. "innovation" is essentially a complex and multifaceted issue, which is also explained by the differences in the approach of economists. v.a. a broader definition of the term "innovation" is given in the dictionary of modern concepts and terms published under the editorship of makarenko. the dictionary defines the term "innovation" as follows: "innovation" means: allocating funds to the economy in order to ensure the generation exchange of equipment and technology; use of new equipment, technology responsible for scientific and technical development; development of new ideas, synthesis, creation of new theories and models and their implementation; mailto:yusupovravshanbek6@gmail.com american journal of business management, economics and banking volume 10 march, 2023 p a g e | 81 www.americanjournal.org implementation of individual, unrepeatable, political programs; the main stage of development of innovation theory corresponded to the studies of v. zombrat, v. mitcherhill, y. schumpeter. austrian economist y. schumpeter made a great contribution to the formation and development of the innovation theory. as a result of the analysis of the sources of innovative business shifts, he distinguished new factors of production and included the following: innovations are first of all characterized by the effectiveness of investments in the development of the economy, represent the replacement of the previous generation techniques and technologies in production with more efficient, ecologically clean and resource-saving means of production. in the above-mentioned points, we define the process of introducing and implementing innovative ideas as "innovative activity". innovative process and innovative activity are considered to be synonymous terms, and it is the process of solving the issues of creation of innovation, wide distribution and introduction into the environment. "innovative activity" consists of a complex process of introduction of innovations, creation and commercialization of competitive products (goods) based on new production technologies. this process includes work from the emergence of an idea, the determination and implementation of its purpose, to the organization of production, to the production of a product, to its sale and to obtaining economic results. processes of organization of innovative activity 1) in the process of initiation, one of the goals and tasks is determined, the generation of ideas, conducting experiments in accordance with the concept of creating a new product, and developing, constructing and preparing prototypes of samples. 2) in the process of innovative marketing, research is carried out before introducing an innovative product to the market (consumers' opinions about the innovative product, evaluation of the market potential, study of the ability of consumers to sell a new product, search for investors). 3) in the process of production of innovations, the organization of production based on the information obtained from the results of marketing research is carried out through: preparation of material techniques and technologies, recruitment of qualified personnel, production consists of purchasing raw materials and materials, patents, licenses, etc. . in this case, legal entities performing innovative activities and individuals participating in innovative activities are considered subjects of innovative activities. innovative infrastructure enterprises, investors, scientific research institutes, educational institutions, and state government entities that support innovative marketing activities. 4) the process of implementation of innovative activity consists of promoting the market entry and sale of the finished innovative product. 5) in the process of promoting the innovative product, it is necessary to organize the acquisition and use of marketing information, the establishment of control at advertising and sales points, and the organization of separate consultation offices. 6) in the process of diffusion, issues related to changes in the characteristics of innovations and improvement of conditions, acquisition of new markets are carried out. 7) evaluation of the effectiveness of innovative products and innovative activities. in this case, the efficiency of the innovative process is analyzed, and according to the analysis, measures are developed to satisfy the need or develop trade. it is known that the laws of the market economy require the use of today's new and effective activities, that is, "innovative activities", even in solving socio-economic problems. this encourages the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 82 www.americanjournal.org implementation of a new approach and new methods in the production and service processes, and encourages management personnel to use their intellectual potential, such as inquisitiveness, initiative and innovation. with the improvement of modern banking services in the conditions of globalization, a number of components of innovative activity entered our path of economic and social development. these are innovation, innovative product, innovative projects, economic mechanisms, market-characterizing action methods and their management, technology transfer, technological audit, innovative marketing, evaluation policy, intellectual property inventory-legal protection, benchmarking, forfeiting, environmental analysis, investment analytical portfolio, such as spin-outs, without which there is no possibility of effectively mastering the principles, strategy, and business policy of the international economic system. it is important to study the researches of foreign scientists, taking into account that they participate in innovative development simultaneously as a subject and an object of market relations, as well as they have different opportunities to influence the dynamics of various factors. cis economists t.i. sherstobitova, a.v. chernykh, s.n. glagolev, n.v. sobchenko, g.g. in fetisova's studies, the factors affecting all economic processes are divided into internal and external environmental factors. g.g. according to fetisova, the factors influencing the enterprise's activity are the enterprise's problems and solutions, and they, in turn, are divided into three groups: 1) organizational factors current state of management, ability to innovate, motivation, internal management system; 2) technological factors the use of modern developing technologies for the production of new products for the consumer market; 3) economic factors we can include capital adequacy, asset and liability adequacy, profit and liquidity indicators. according to the results of this author's research, we can mention the economic factors with the high influence of these factors within the group. a.v. chernykh and n.v. the sobchenkos systematized the factors affecting all types of innovative activities of enterprises in the market conditions as follows: • by nature: economic and non-economic factors; • according to predictability: predictable and unpredictable factors; • according to the ability to control and control: controllable and uncontrollable factors; • according to the influence of factors: one-time, natural factors, permanent factors; • to the level of impact: macro and micro level factors were studied. in conclusion, the main goal of the hierarchical systematization of the factors affecting the innovative activity of banking institutions can be used as a methodological basis in the approaches to the organization of innovative activity and effective evaluation of factors, especially in the markets of banking services. literature 1. makarenko v.a. sovremennыy slovar. v 2 t. – m.; 2000. 2. kamiljanov b.i. innovatsiyaviy menejment uslublarini takomillashtirish t.; fan, – 2007. 172b. 3. saidov m.h. oliy ta’lim iqtisodiyoti, investitsiyalari va marketingi: o‘quv qo‘llanma.-t.; moliya, 2003 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 83 www.americanjournal.org 4. glagolev, s.n. ekonomicheskiy mexanizm gibkogo razvitiya promыshlennogo predpriyatiya : monografiya spb., ximizdat, 2002. 5. fetisov, g. g. ustoychivost bankovskoy sistemы : uchebnoe posobie. m., finansovaya akademiya, 2002. 6. chernыx, a.v. mexanizm ustoychivogo razvitiya predpriyatiya v period aktivnoy investitsionnoy deyatelnosti//avtoreferat dissertatsii na soiskanie uchenoy stepeni kandidata ekonomicheskix nauk. belgorod,2006. 21s. 7. sobchenko, n.v. predprinimatelskie strukturы: faktorы, vliyayuщie na ustoychivoe razvitie //vestnik belgorodskogo universiteta potrebitelskoy kooperatsii. 2009. №4 (chast 1). s.229-235. 8. suyunov d.h. “the main problems of corporate governance and ways to solve them”, epra international journal of economic growth and environmental issues (egei) issn:2321-6247 impact factor: 8.007 (sjif 2020) 202101-13-006137, 9, 1, january, 2021. 9. suyunov d.x. tmining “halqaro moliya va hisob” ilmiy onlayn jurnal, №3, iyul, 2020 yil, 5863 betlar. 10. suyunov d.h theoretical principles of improving the modern corporate control system in joint stock companies. international journal of economic perspectives,16(11), november 2022. 90-97. retrieve.from. 2022 by the author(s). issn: 1307-1637. impact factor: 5.865. 11. suyunov d.h the role of energy in the economic development of uzbekistan. uif-2022: 8.2. issn: 2181-3337. international scientific journal science and innovation. 2022. http://scientists.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 145 www.americanjournal.org the role of small business and entrepreneurship in the economy nasirov mansur ibroximovich biznes va tadbirkorlik oliy maktabi magistranti 93-537-77-33 a b s t r a c t k e y w o r d s the current stage of economic reforms implemented in our country requires the development of small business and private entrepreneurship, giving it wide economic freedom and improving its efficiency. in order to achieve this goal, the development of a number of decrees and decisions by the head of our country will definitely serve to increase the efficiency of small business and private entrepreneurship. business, economic indicators, e-commerce, gdp, sustainable development. introduction o'zbekiston respublikasi prezidenti sh.m.mirziyoev 7 fevral № 4947 farmoni bilan 2017−2021 yillarda o'zbekistonni rivojlantirishning beshta ustuvor yo'nalishi bo'yicha harakatlar strategiyasini tasdiqlab berdilar. iqtisodiyotni yanada rivojlantirish va liberallashtirishga yo'naltirilgan makroiqtisodiy barqarorlikni mustahkamlash va yuqori iqtisodiy o'sish sur'atlarini saqlab qolish, milliy iqtisodiyotning raqobatbardoshligini oshirish, qishloq xo'jaligini modernizatsiya qilish va jadal rivojlantirish, iqtisodiyotda davlat ishtirokini kamaytirish bo'yicha institutsional va tarkibiy islohotlarni davom ettirish, xususiy mulk huquqini himoya qilish va uning ustuvor mavqeini yanada kuchaytirish, kichik biznes va xususiy tadbirkorlik rivojini rag'batlantirish, hududlar, tuman va shaharlarni kompleks va mutanosib holda ijtimoiy-iqtisodiy taraqqiy ettirish, investitsiyaviy muhitni yaxshilash orqali mamlakatimiz iqtisodiyoti tarmoqlari va hududlariga xorijiy sarmoyalarni faol jalb etish”.mamlakatimizda ishbilarmonlik muhitini yanada yaxshilash bo`yicha amalga oshirilayotgan kompleks chora-tadbirlar kichik biznes va xususiy tadbirkorlikni jadal rivojlantirish va barqaror iqtisodiy o`sish sur`atlarini ta`minlash imkonini bermoqda. adabiyotlar tahlili va metodologiyasi kichik biznes va xususiy tadbirkorlikni rivojlantirish о‘zbekistonda amalga oshirilayotgan iqtisodiy islohotlarning eng muhim ustuvor yо‘nalishlaridan biridir. kichik biznes kapital taqchilligi sharoitida kо‘p va yirik mablag‘ talab etmaydigan xо‘jalik faoliyati sifatida resurslar aylanmasining yuqori sur’atlarini ta’minlaydi, iqtisodiyotni qayta qurish, iqtisodiy beqarorlik va resurslar chegaralanganligi sharoitida iste’mol bozorini shakllantirish va uni tо‘ldirish muammosini tez hamda tejamli tarzda hal etadi. kichik korxonalar bozor talabining о‘zgarishiga darhol moslashadi va shu yо‘l bilan iste’mol bozoridagi zaruriy muvozanatni ta’minlaydi. shuningdek, kichik biznes yangi ish american journal of business management, economics and banking volume 12 may, 2023 p a g e | 146 www.americanjournal.org о‘rinlarini yaratishi bilan о‘sib boruvchi ishsizlik muammosini yumshatadi. muhokama va natijalar bu esa о‘z navbatida respublikamiz aholisining 60% dan ortig‘i qishloq joylarda yashashini hisobga olsak, ushbu sohani rivojlantirish va taraqqiy etishini ta’minlash hozirgi kunda eng muhim dolzarb ijtimoiy-iqtisodiy masala ekanligi yorqin namoyon bо‘ladi. bu borada barqaror iqtisodiy о‘sishini ta’minlashda kichik biznes va xususiy tadbirkorlikni rivojlantirish borasida amalga oshirilgan ishlarning kо‘lamiga qaramasdan bu sohada hali о‘z yechimini kutayotgan muammolar mavjud. jumladan iqtisodiyotning yetakchi tarmoqlariga kichik biznesni rivojlantirishning ilg‘or xorijiy tajribalarini tatbiq etish, ularining о‘ziga xos ilmiy-uslubiy asoslarini о‘rganish, kelgusidagi istiqbolli rivojlanish strategiyalarini ishlab chiqish hamda tadbirkorlik subyektlarining iqtisodiy samaradorligini oshirishning tashqi va ichki omillarini aniqlash lozim. shu nuqtai nazardan, respublikamizda real sektor tarmoqlarining barqaror iqtisodiy о‘sishini ta’minlashda kichik biznes va xususiy tadbirkorlik faoliyatini istiqboldagi izchil rivojlantirish yuzasidan ilmiy asoslangan taklif va tavsiyalar ishlab chiqish bugungi kunning muhim va dolzarb masalalaridan biri hisoblanadi. kо‘plab xorijiy va mahalliy iqtisodchi olimlar kichik biznes va xususiy tadbirkorlikning mazmun mohiyati, uni rivojlantirishga ta’sir etuvchi omillar, kichik biznes subyektlarining iqtisodiyotdagi о‘rni hamda ahamiyati tо‘g‘risida ilmiy tadqiqotlar olib borilgan. jumladan, v.dolyaning “ensiklopediya biznesmena” lug‘atida «tadbirkor degani yangi bir ishga qо‘l urish, uni bajarishga kirishish, qandaydir kattaroq ishlarni amalga oshirishdir»-deb ta’rif berilgan bо‘lsa, r.xizrich va m. piterslar “tadbirkor, ya’ni о‘ylab ish kо‘ruvchi kishi korxona ishini yurgizishga moyil, qobiliyatli, katta hajmdagi ishlarga qо‘l ura oladigan, jasur, chо‘rtkesar va bunday ishlarga botir bо‘lgan kishidir»-deb ataganlar. rossiyalik olimlardan a.g.aganbegyan iqtisodiyotda kichik biznes subyektlarining iqtisodiyotda mahsulotlar ishlab chiqaruvchi, boylik yaratuvchi va xizmat kо‘rsatish sohalarini о‘z ichiga oladigan soha ekanligi ammo, unga moliya-kredit, birja faoliyati kirmasligini ta’kidlagan bо‘lsa, a. komov о‘zining “russkoye ekonomicheskoye obshestvo” jurnalida bergan ilmiy maqolasida kichik biznes subyektlarini iqtisodiyotning yirik tarkibiy qismi ekanligi va uning rivojlanishida kredit tizimining ahamiyati tо‘g‘risida fikr yuritgan. umuman olganda, kishining tadbirkorlik holati bu tashabbuskorligi, novatorligi, manfaatdorligi, ishga eskicha emas, yangicha yondashishdir. xulosa о‘zbekistonda kichik biznes korxonalarini barpo etish orqali mustaqil xо‘jalik yurituvchi mulk egalari shakllandi. kichik biznes korxonalari bozor iqtisodiyotiga xos turli makroiqtisodiy shartsharoitlar va talablariga moslashishi imkoniyatlariga egaligi bilan ustuvor ahamiyatga ega. iqtisodiyotning turli tarmoqlarida kichik biznes va xususiy tadbirkorlik faoliyatini rivojlantirish milliy iqtisodiyotimiz barqarorligini ta’minlashning muhim makroiqtisodiy omillaridan biri hisoblanadi. keyingi yillarda kichik biznes taraqqiyoti natijasida ularning mamlakatda yaratilayotgan yalpi ichki mahsulot salmog‘idagi ulushining ortib borayotganligi bilan izohlash mumkin. mamlakat iqtisodiyotini rivojlantirish dasturi doirasida iqtisodiy о‘sishni ta’minlash, yangi ish о‘rinlarini tashkil qilish, bandlik muammosini hal etish, aholining daromadlari va farovonligini oshirishda tobora muhim о‘rin tutayotgan kichik biznes va xususiy tadbirkorlikni jadal rivojlantirish, rag‘batlantirish va qо‘llabquvvatlashga alohida e’tibor qaratiladi. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 147 www.americanjournal.org references 1. ахунова, ш. н., & абдуллаева, б. (2015). динамика и перспективы развития частного предпринимательства в узбекистане. журнал научных публикаций аспирантов и докторантов, (5), 23-25. 2. ахунова, ш. н. (2015). к проблемам оптимизации налоговой нагрузки субъектов предпринимательства. молодой ученый, (2), 246-248. 3. кундузова, к. и., & ахунова, ш. н. (2019). пути развития дехканских хозяйств и повышения их эффективности. известия ошского технологического университета, (3), 273-277. 4. kurpayanidi, k., nabiyeva, n., akhunova, s., & tukhtasinova, m. (2021). analysis of the state's macroeconomic policy. revista geintec-gestao inovacao e tecnologias, 11(4), 4669-4680. 5. ахунова, ш. н., & аширалиев, ф. (2015). к вопросам развития строительной индустрии в сельской местности узбекистана. молодой ученый, (6), 375-377. 6. ахунова, ш. (2021). эволюционная структура и функции конкуренции. общество и инновации, 2(2), 87-92. 7. ахунова, ш. н., мамаджанов, и. б., & урозова, д. д. (2019). химическая промышленность узбекистана: проблемы развития и пути их преодоления. экономика и бизнес: теория и практика, (6-1), 34-38. 8. ахунова, ш. н. (2014). организационно-правовые механизмы формирования семейного предпринимательства. актуальные проблемы гуманитарных и естественных наук, (4-1). 9. namanzhanovna, a. s., & shokhsanam, t. (2021). global trends and prospects for the development of the innovation economy in uzbekistan. american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 84 www.americanjournal.org prospects for improving the deposit policy of commercial banks shermukhamedov bekhzodjon usmonovich tashkent financial institute, phd docent email: diplomat _701@ mail . ru abdulatifova mohinur alisher qizi tashkent state university of economy, master in macroeconomics email: mohinur280398@mail.ru a b s t r a c t k e y w o r d s this article discusses the trends observed in the implementation of deposit policy by commercial banks and issues related to their impact on deposit policy. in the article, the deposit policy is a key part of the overall banking policy, which defines the strategy and tactics of commercial banks to conduct deposit activities. it also contains the author's suggestions and recommendations on the problems of deposit policy and their solutions deposit, deposit types, demand deposit, term deposit, savings deposit, transactional deposit, certificate of deposit, bank resources, deposit policy, attracted funds, bank resource base. the scientific studies conducted on the activities of the world bank system and the expected state of the services offered by it in the near and long term show that traditional banking services are not only banking and non-banking financial organizations, but also various electronic wallets and competition between technology companies offering virtual currencies, online retail systems, and social networks is intensifying. specifically, "ey (ernst & young) [1] and deloitte development llc." according to the analyzes carried out by reputable international auditing companies such as [2], they concluded that the formation of financial stability and a solid resource base, increasing competitiveness in the financial services market directly depends on the level of organization of banking activities based on innovative digital technologies. this indicates that increasing the effectiveness of the policy on attracting the funds of individuals and legal entities to bank deposits is becoming one of the important conditions for the stable development of the banking sector. scientific research work is being carried out on the development of bank deposit policy in world practice. in particular, the problems related to providing innovative deposit services through the branches of banks operating in the smart-banking system, ensuring the compatibility and consistency of the deposit policy with strategic programs for the development of the banking system, the methodology of the development of the deposit policy and the improvement of its implementation instruments have been thoroughly researched. the fact that the issues of forward looking approach in american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 85 www.americanjournal.org determining the final, intermediate and operational goals of the deposit policy as a component of the development strategy of the bank in the formation of the deposit policy are neglected in the research conducted today, makes it necessary to activate the research in this regard. the reforms carried out in the banking system of uzbekistan are aimed at increasing the level of capitalization of commercial banks, ensuring their financial stability, expanding the scope of lending to the real sector of the economy, improving the quality of banking services, attracting the free funds of the population and economic entities to bank deposits, and the strategic importance of the economy. a number of problems related to improving the relevant bank policies for effective placement in the networks, implementing innovative and beneficial types of bank deposit services for customers, strengthening the trust of the population and business entities in the banking system, increasing the level of efficiency of banking services aimed at improving the deposit policy of commercial banks determines the urgency of developing proposals and practical recommendations . the strategy of actions for further development of the republic of uzbekistan, approved by the decree of the president of the republic of uzbekistan no. pf-4947 of february 7, 2017[3], as well as the tasks defined in the relevant decrees and decisions of the president of the republic of uzbekistan, are fundamental in the process of ensuring the financial stability of the bank's activities and increasing the efficiency of its activities. changes are taking place. this has led to increasing the importance and role of deposit policy in the implementation of strategic goals of banks and forming a solid resource base, as well as issues related to its improvement, becoming one of the urgent directions of scientific research. based on this, in this article, we will try to analyze the content and essence of the scientific and practical approaches formed in relation to the structural elements and principles of the deposit policy. analysis of literature on the topic the conducted research allows us to conclude that there are two main scientific approaches that differ significantly from each other regarding the structural elements of the deposit policy of commercial banks and their economic essence. taking into account that such grouping of approaches is not mentioned in scientific sources, grouping the first direction as a scientific approach based on "formulation of deposit policy based on the marketing concept", and the second direction as a scientific approach based on "formulation of deposit policy as a separate system", in our opinion, is appropriate. in the majority of scientific and practical sources, carried out within the framework of the first scientific approach, the structural elements that should be paid attention to in the development of the deposit policy of commercial banks include: determination of market segmentation; positioning; customer profitability; customer satisfaction; the level of efficiency of the provided services is entered. we will try to determine the main features that classify each of the structural elements based on the opinions and comments expressed by the leading scientists of this field. in particular, according to scientists f. kotler, g. armstrong, d. saunders, v. wangi [4], k. r. darrell [5], s. allard [6], who are considered to be leading experts in the field of marketing, commercial organizations should american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 86 www.americanjournal.org promote their products and when developing the policy of offering services, it is necessary to carry out the segmentation of the intended market (that is, the grouping of customers according to the general demand, characteristics or behavior of the market). after defining the market segment, the bank needs to define its target customers. this process is called market positioning of the bank. the term "positioning" was first used by american marketers e.rice and j.trout [7] in 1982, "positioning: the fight for people who know you". according to the authors, positioning is a communication mechanism designed to influence the thinking of potential consumers without being directly related to the product or service. positioning essentially means: "for" (target market segment or demand); "our" (brand of the organization); "specific" (product or service concept); "unique" (different from other goods and services). p.e. pfeiffer, m.e. haskens and r.m. conrowler [8] proposed to determine the level of customer profitability for a bank as the difference between the revenue received from services provided to customers and the costs of providing services during a certain period. according to scientists, not all customers are profitable. some of them are more profitable than others. research methodology this article analyzes the current state of deposit policy implementation by commercial banks and identifies factors affecting the stability of the bank's resource base. scientific abstraction, expert assessment, induction and deduction, comparison, systematic analysis methods were used in the analysis process. analysis and results we will dwell on this issue in more detail, taking into account that the method of calculating the level of profitability of customers is of certain importance from the point of view of the tasks set before the scientific research work. it should be noted that a number of methods for determining the level of profitability of customers have been developed and are being used in the activities of banks. in particular, the evaluation of the level of profitability (efficiency) of a customer taken separately by the method of customer profitability analysis (cpa) is carried out in the following six steps: stage 1. changes and analysis of net invested funds in relation to the client: the amount of resources provided by the client to the bank and the amount of credit resources allocated by the bank to this client is determined. on this basis, the net investment position is evaluated; stage 2. change and analysis of the flow of income received from the client: the flow of income received from the client and the income received from the placement of the client's temporary free funds by the bank are determined; stage 3. customer service cost variation and analysis: the direct costs associated with serving a customer and the costs associated with providing resources to that customer are identified. on this basis, direct costs related to customer service and their weight in total costs are evaluated; step 4. changes and analysis of indirect costs related to customer service: indirect costs related to customer service are determined and their weight in total indirect costs is estimated on this basis; step 5. calculation of the resulting financial indicators for customer service: net profit (loss) from american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 87 www.americanjournal.org customer service, profitability of customer service; indicators of profitability of sales of services are determined; step 6. making conclusions on the development of the bank's relationship with the client. in the cpa methodology, the net profit (loss) (np) from serving the client is calculated based on the following formula: in this: r – bank income received from customer service; c – direct costs of the bank related to customer service; q – indirect costs of the bank related to customer service. the net profitability of customer service (cp) is calculated based on the following formula: the following formula is used to calculate the return on sales of services (tp): the positive features of the cpa methodology include the ability to comprehensively assess the client's profitability and, in our opinion, the most important thing is the ability to determine the income from the use of the client's funds. as a disadvantage of the system, it can be noted that the level of profitability of customers can be estimated based on the performed operations, which may limit the possibilities of forecasting the near and long term. a unique methodology for evaluating the profitability of customer service was developed by the largest russian federation "sberbank of russia" [9]. calculations according to this method are supposed to be carried out in six stages. they consist of: stage 1. determining the amount of resources allocated to the client (resources allocated to the client under the overdraft credit agreement, resources allocated to the client under corporate loans); stage 2. calculation of the amount of resources attracted from the client; stage 3. determination of the amount of net resources allocated to the client and the amount of net resources attracted from the client (the difference between the resources allocated to clients and the resources attracted from clients and vice versa); step 4. calculation of the amount of income received from the client (average monthly interest income on credit resources; average monthly interest income from the placement of the client's funds; average monthly non-interest income from customer service); step 5. calculation of expenses related to customer service (average monthly volume of interest expenses, average monthly volume of non-interest expenses related to the implementation of customer transactions, average monthly volume of non-interest expenses related to the provision of commission services to the customer); step 6. calculation of the projected profitability of customer service (average monthly net income from customer transactions; r1 forecast profitability; r2 forecast profitability). according to the methodology of "sberbank of russia", the average monthly net income (ds) for customer transactions is calculated by determining the difference between income and expenses: (1.2) (1.3) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 88 www.americanjournal.org ds = d (revenues) – x (expenses). the following formulas are used to calculate the forecast profitability of r1 and r2: according to the german scientist, professor t. y. gerpott, the level of customer satisfaction is "an organized summation of evaluations of individual characteristics of the service (they can be positive or negative), and this evaluation is influenced by the expected and perceived quality characteristics." continuing his comments, the scientist said that "a positive evaluation of the service increases the probability of repurchase by the customer, but does not guarantee it, because the level of customer satisfaction is greatly influenced by its functional and economic connection with the bank, the level of attractiveness of the services offered by competitors, and the general evaluation of private business." concluded that [10]. according to most scientists, the effectiveness of bank activity is directly related to the level of competitiveness of the bank. according to the conclusions of well-known american scientists j. sinkikichik and m. porter [11], efficiency depends on the main feature of competitiveness, that is , the convenience created for consumers, customer trust, and the formation of assessments for services. since one of the important aspects of the deposit policy is the calculation of the price of operations on bank deposits, we will briefly touch on the methods of price formation. in particular, a.i. borodin and v.m. poletaeva came to the conclusion that it is appropriate to use an optimization mechanism that takes into account the following limiting parameters when setting the optimal interest rate on deposits of individuals [12]: the base (refinancing) rate of the central bank; basic profitability of bank deposits increased by 2 percentage points; weighted average base rate (competitive interest rate) for deposit transactions in national currency; reserve requirements; banks' need for attracted resources. the model proposed by these scientists for determining interest rates on household deposits looks like this: in this: i type of deposit; t term of deposit; hit – the average interest rate on retail deposits of the bank (during the reporting period) in percentages; (1.4) (1.5) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 89 www.americanjournal.org xio – the average interest rate on retail deposits of the bank (during the reporting period) in percentages; kt – base (refinancing) rate of the central bank, in percentages; bt the basic yield of bank deposits, in interest; ct – interest rate on similar deposit products offered by competitors; drrt change in the ratio of reserves to mandatory reserves during the period under study; dbrt – changes in the rates of allocations to the deposit insurance agency during the research period; dit – amount of attraction of type i deposits of the bank during period t, in national currency; rit is the amount of demand for type i deposits during period t, in national currency. the scientific conclusions formed on the main principles of the deposit policy in the above-mentioned two scientific directions are fundamentally indistinguishable from each other. therefore, we consider the principles common to the two scientific directions and their economic essence (table 1.1) table 1 the main principles proposed by representatives of the scientific direction in relation to the formation of the deposit policy [13] it can be seen from the data of the table that the principles of development and implementation of the deposit policy of banks were considered from two aspects (aspects), i.e. general principles for banks and special principles related to the structural units of the bank responsible for the development and implementation of the deposit policy. general principles special principles the name of the principle general feature the name of the principle general feature compliance with legal norms compliance of the deposit policy with the requirements of the relevant laws and regulations unity of elements all elements of the deposit policy are considered in a coherent unity and connection scientific basis the deposit policy relies on the latest science and best practices and is implemented through scientifically based methods the optimal level of costs determining the possibilities of minimizing the costs of attracting deposits system integrity deposit policy is a subsystem of banking policy, but it has a primary nature for policies in the field of asset operations profitability covering the costs of attracting deposits with the income from their placement and receiving the planned profit the complexity of the approach development of the theoretical foundations and priorities of the deposit policy from the point of view of the development strategy of the bank liquidity ensuring bank liquidity and matching between assets and liabilities optimality and efficiency development of effective and optimal tactical directions and methods of deposit policy implementation security ensuring the confidentiality of the funds involved in the deposit and the information on them reliability eliminate the risk of not being able to receive funds on deposit and interest on them american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 90 www.americanjournal.org taking into account the limited scope of scientific research work, we believe that it is inappropriate to make relevant comments and conclusions on the structural structure of the deposit policy, as well as the principles of its development and implementation. therefore, based on the results of the analysis of scientific and practical sources, we will try to form an author's approach regarding the main goal set before this paragraph of the dissertation, i.e., the structural elements of the deposit policy of commercial banks and the principles of its formation and implementation. in our opinion, the following characteristics and factors should be taken into account when determining the structural elements of the deposit policy of commercial banks and their economic nature: first of all, the main rules of the theory of organization and systems, in particular, the fact that the structural elements of the system cannot independently affect the system , such an effect can be carried out only in interaction with other elements, as well as the fact that the structural elements of the integrated system do not have their own private goals, are necessary conditions to be taken into account in scientific research. is one; secondly, changes occurring in the system require changing the structural elements, as well as, on the contrary, not to ignore the fact that a change in any one of the structural elements, which is related to the fact that the current state of the system requires a change, will disrupt the functioning of the system if it is not strictly followed; thirdly, it is required to follow the principle known as "pareto optimum" in scientific sources when planning and implementing changes related to improvement or optimization of system activity. according to this principle, in order to consider that the maximum welfare of the society is ensured and the process of distribution of resources is carried out in an optimal way, it is necessary that the desired change of this distribution does not have a negative effect on the welfare of any subject of the economic system [14]; fourthly, goals and tasks of strategic importance, problems and measures to eliminate them are developed only within the framework of an independent, integrated system. issues related to the development and improvement of structural elements within the framework of the general development strategy will be of tactical importance, regardless of the period of validity. this indicates that strategic management tools and instruments cannot be used in the process of organizing and conducting the activities of structural elements; fifth, the activity of any system or its constituent elements is within the influence of other systems or their constituent elements that are directly or indirectly related to them. such an effect is a factor that must be paid attention to in order to ensure the stable operation of the system. conclusions and suggestions determining the structural elements of the deposit policy of commercial banks, in turn, requires the development of a set of principles that determine the behavior of each element. requires adjustment of the deposit policy to the principles used in strategy formation. considering that the principles used in the development of the banking development strategy are formed on the basis of the main strategic document of the central bank of the republic of uzbekistan, "the main directions of monetary policy", we believe that it is appropriate to introduce them into the process of developing and implementing the deposit policy. in our opinion, they are: 1. specific target areas of the deposit policy. in order to increase the confidence of the customers and other creditors in the deposit policy of commercial banks and to conduct it effectively, they should american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 91 www.americanjournal.org have a clear vision and purpose of the present day and prospects of the bank's deposit policy. 2. independence in making decisions on the development of the deposit policy and its implementation. the task of maintaining an efficient and effective deposit policy (from the point of view of the stability of the bank's activity) requires a certain degree of independence of the commercial bank in making sector-related decisions. because decisions made within the framework of the deposit policy affect the bank's financial indicators with certain time delays and may not have immediate results. from this point of view, it is important for the bank to make decisions based on careful analysis and to be firm in its decisions regarding the deposit policy. 3. system of macroeconomic analysis and forecasting within the deposit policy. the successful implementation of the deposit policy depends to a certain extent on the accuracy and reliability of information about the state of the deposit services market and its development trends. 4. effective means and mechanisms of deposit policy implementation. revision and improvement of existing tools and mechanisms, as well as implementation of new tools and mechanisms operating on the basis of market principles, are of great importance in ensuring the strategic efficiency of deposit policy development and implementation. this means that the deposit policy should be conducted only through market mechanisms and not through administrative methods. 5. deposit policy communication system. the communication policy includes the continuous dissemination of a complete set of financial and quality indicators related to the deposit policy, disclosing the intermediate and operational goals of the deposit policy, and explaining the reasons for the decisions made in this area. the procedure for development and implementation of the deposit policy by the commercial bank, as well as information about its purpose, means and instruments, should be provided in a clear and easily understandable manner for the participants of the market of deposit operations. 6. ensuring interrelationship and consistency between bank policies. another important factor in conducting an effective deposit policy is ensuring the interrelationship of all policies developed within the framework of the bank's development strategy and their coordination. as a conclusion, it can be noted that despite the fact that the theoretical and methodological foundations of the development and implementation of the deposit policy of commercial banks have been researched by many scientists, this issue has not been considered in detail from the perspective of the activity development strategy. approaching the deposit policy as a tactical tool for implementing the strategy requires reviewing and improving the structural elements of this policy, the principles of its development and implementation. revision and improvement of structural elements and principles of the deposit policy will lead to transformation into an important factor ensuring the successful implementation of the banking activity development strategy. in turn, the achievement of the strategic goals set by each bank allows strengthening the banking and financial system of our country, expanding the scope of lending to the economy, increasing the spectrum of banking services provided, as well as increasing the role of the banking system in the development of the country's economy. list of used literature 1. https://www.ey.com/bankinginnovation details. 2. www.deloitte.com/about information. 3. decree of the president of the republic of uzbekistan dated february 7, 2017 no. pf-4947 on the strategy of actions for the further development of the republic of uzbekistan//lex.uz. https://www.ey.com/bankinginnovation http://www.deloitte.com/about american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 92 www.americanjournal.org 4. f. kotler, g. armstrong, w. wong, d. saunders. basic marketing. – 5th european izd. m.: ooo "i.d. williams", 2013. 752 p. 5. darrell, krmanagement tools 2015: an executive's guide http://www.bain.com/images/bain_guide_management_tools_2015_executives_guide.pdf 6. allard, s. client segmentation: new approaches for private bankers http://www.privatebanker.lu/wpcontent/uploads/2012/07/sebastien-allard-ibm.pdf . 7.a. ries, j. trout. positioning: the battle for your mind new york: warner books, 1982. 213 p. 8. pe pfeifer, me haskins, rm conroy. customer lifetime value, customer profitability, and the treatment of acquisition spending. journal of managerial issues. 2004. p. 1-25. http://citeseerx.ist.psu.edu/viewdoc/ 9. prepared by the author based on information from http://www.sberbank.com 10. gerpott t.j. empirical research on customer loyalty. problems of theory and practice of management. 2000. no. 6. s. 73-77. 11. sinky. dj. financial management in commercial banking and industrial financial management. per. english moscow: alpina business books, 2007. 1018 pages; porter, m. the five competitive forces that shape strategy. harvard business review, 2008. p. 86 12. borodin a.i., poletaeva v.m. the method of determining the optimal percentage rate for different deposits. dengue i credit. 2016. no. 9. s. 41-46. 13. developed by the author based on research results. 14. schumpeter i. ten great economists from marx to keynes / per. from english. n.v. avtonomova, i. m. osadchey, n.a. rozinskaya; under scientific ed. v.s. avtonomov. m.: ed. gaidar institute, 2011. pp. 195-196. http://www.bain.com/images/bain_guide_management_tools_2015_executives_guide.pdf http://www.privatebanker.lu/wpcontent/uploads/2012/07/sebastien-allard-ibm.pdf http://citeseerx.ist.psu.edu/viewdoc/ american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 150 www.americanjournal.org criteria for assessing the use of human capital in small business olimov furqat khoshimovich lecturer, department of sociology national university of uzbekistan email: furkat.olimov1980@gmail.com a b s t r a c t k e y w o r d s the article deals with the concept of human capital, the history of its emergence, the opinions of world scientists about this theory, and the role of human capital in achieving sustainable economic development in the country. the theory of human capital shows that in production, wages vary depending on the productivity of the worker in the workplace. the efficiency of the work of skilled workers will be more productive, respectively, and wages themselves will be higher. on the other hand, the axiom of human capital theory is that investing in education is only appropriate if it provides high wages. assessment, investment, human capital, economic stability, social needs, knowledge, skills, human resources. introduction in the message of the president of the republic of uzbekistan sh.mirziyoev to the oliy majlis on the results of socio-economic development of uzbekistan in 2018 and the most important priorities of the economic program for 2019 modern attitude to human capital and investments in human capital the importance of inclusivity for all aspects of society, as well as the fact that investments made by providing education to 3-22-year-olds will return more than 14 times [1]. the problems of management and planning of human capital occupy an important place in the system of activities for the establishment of economic relations. at each stage of socio-economic development, the mechanism of human capital management directly depends on the concept of economic management adopted by the state, which, in turn, serves as a methodological basis for the development of a model of the economic mechanism. the main part. changes in the formation and use of human capital are natural in the conditions of transition to market relations. the solution of economic and social problems in a country is determined by its ability and potential to generate or attract financial resources. in a market economy, the identification and evaluation of human capital is of great importance in the development of adequate mechanisms for managing the economy in the country. human capital is a set of knowledge, skills and experience used to meet many personal and social needs of a person. this term was first used by the american economist and sociologist theodore schultz and his follower gary becker in the 60s of the 20th century. the theory of an economic mailto:furkat.olimov1980@gmail.com american journal of business management, economics and banking volume 10 march, 2023 p a g e | 151 www.americanjournal.org approach to human behavior is put forward and the effectiveness of investing in human capital is substantiated. theodor schultz was awarded the international nobel prize in 1979, and gary becker — in 1992 for creating the foundations of the theory of human capital [2]. economists usually distinguish three factors of production: land, labor and physical capital. since the 1960s, the focus has been on the quality of work, including the level of knowledge and professional training of the workforce. this is how the concept of human capital was born, which includes knowledge, skills and other characteristics of people bringing personal economic and social benefits. experience and potential are mainly formed through study and work, but can also be determined by the peasant given by nature. human capital can be defined as certain human behavior and motivational factors, as well as physical, emotional and mental health associated with it. initially, human capital meant investments in education and professional skills that serve to increase a person's labor potential. over the past 50 years, this concept has expanded significantly. according to the ledgers of the world bank experts, the consumption of human capital consists of expenditures directed to meeting the needs of the family and the state in food, clothing, housing, healthcare, culture [3]. human capital is classified as follows: 1. individual human capital. 2. human capital of the organization 3. national human capital knowledge, skills, potential, as well as human qualities that bring personal, social and economic benefits to a person. models of the theory of human capital allow us to theoretically assess the effectiveness of investments in human capital to improve its economic situation in the future. types of investments can be very different. direct expenses are presented in the form of books, tuition, scholarships and other fees. indirect costs are the loss of income that could be earned during training. direct investment is a higher salary in the future than an employee without a higher education. indirect investment is an additional intangible benefit for a qualified employee, such as additional reliable income, opportunities for further promotion, social and social status with relatively high social security. the human capital accumulated during training, as well as the skills acquired in the workplace, are a good opportunity for a potential salary increase or a more prestigious job in the future. the theory of human capital shows that wages in production differ depending on the efficiency of the employee's work. skilled workers will be more productive and, accordingly, wages will automatically be higher. and the axiom of the theory of human capital is that investing in education is advisable only when a large salary is provided. higher education specialists have an income or salary "capitalized income", which is calculated according to the interest rate for the period of study at the educational institution. thus, we can say that the accumulated salary of a specialist is divided into two parts. the basic salary is a reward for the work of a specialist for the current year. overtime pay is a reward for the labor spent on training at work in the past years. "human capital", built on the basis of knowledge and potential, has the power to comprehensively measure and determine, to show its results more clearly, including the acquisition of knowledge due to human character and natural giftedness. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 152 www.americanjournal.org a person has the opportunity to acquire skills and knowledge from birth to death. direct lifelong learning means not only training adults as specialists, but also starting from school age. human capital is formed by: attention to knowledge in the family, that is, learning from a young age; formal education and vocational training, kindergarten education, school-age education, vocational education or general compulsory education, higher education, adult education, etc. special training at the workplace, as well as information and communication training, advanced training and knowledge gained as a result of research. in the process of obtaining informal information in the process of work and in the process of living, experience acquired in everyday life. human capital is a broad concept. experience and competence can be general (such as reading, writing and speaking) or advanced knowledge. most of the knowledge and skills are hidden, not recorded in any documents, this is due to some difficulties, the documents are not approved by the standard or not approved at all. the more closed and uncertain knowledge is, the more difficult it is to exchange skills. lundvall and johnson (1994) divided knowledge into four categories: 1. to know what: the pursuit of knowledge through a concrete fact 2. knowing why: an approach to knowledge based on the principles and laws of nature, human thinking and community learning. 3. how to find out: rely on experience (more precisely, to do something based on the farmer) 4. know who: exchange ideas with people from any social group. human capital is a stock of knowledge, experience and skills that every person possesses. investments in it are carried out in the form of education, improvement of industrial practice, healthcare, geographical mobility, information search, etc. although several indicators can be distinguished in human capital, there are no generally accepted indicators yet. g. becker includes educational capital (general and special knowledge), health capital, vocational training capital (qualifications, skills, work experience), migration capital, as well as economically important information and motivational desire for economic activity. l. turov adds respect for political and social stability to human capital [4]. v. marsinkevich tries to study the influence of concepts that cannot be measured and not verified, such as activity, responsibility, honesty, collectivity and initiative, on human creativity [5]. in any case, the study of human capital through indicators is more qualitative than quantitative. the system for determining its quantitative indicators has not yet been fully developed. the measurement of the above indicators and their components causes a number of problems. it is possible to calculate only the exact costs, but this does not indicate the economic value of these indicators. in addition, the biological indicators given to man by nature (beauty, good health) and intellectual abilities (mathematics, poetry) are the gift of specific ancestors to the next generation. t. schultz, g. becker and their followers revolutionized labor economics and labor sociology. we have made the transition from one-time current indicators to the calculation of indicators covering the entire life of a person (permanent income). they saw "capital" investments in the behavior of agents in the labor market, as well as the recognition of human time as an important economic resource. the theory of human capital is able to explain the system of distribution of personal income, the dynamics of income depending on the age of a person, the inequality in the price of labor between men american journal of business management, economics and banking volume 10 march, 2023 p a g e | 153 www.americanjournal.org and women, the causes of migration and much more like. based on this theory, investments in education were equated with investments in economic development. the human resource management strategy is a functional strategy that completely depends on the development trends and changes in strategic management. currently, the main objective of the human resource management strategy is to create a long-term, profit-oriented team, which is characterized by: the role of highly qualified employees working at all levels will increase. in the process of globalization, this has had a serious impact on the growth of all kinds of needs, including in the labor market. in foreign literature, the following areas of human resource management strategy are distinguished[6]: reduction of wages paid to labor in the process of production and sale of products; the integral relationship of the human resource management strategy with the overall strategy of the organization; the direction of constant investments to increase the professional potential of human resources; development of organizational culture; implementation of human resource management methods compatible with the mentality of employees; continuous improvement of the recruitment strategy and policy; individual approach to talented employees. the human resources management strategy recommends working according to the following algorithm: analysis of the mission, goals, internal and external environment, analysis and selection of alternative options, and therefore analysis of the results of the strategy implementation. at each stage of the organization's life (birth, growth, maturity, decline, crisis), this algorithm has its own characteristics. the mission of the organization is to answer the questions of who is the client of the organization, how the organization meets the needs of the client on the basis of a certain system. defining a mission involves performing a number of tasks. human resource management of an organization consists of attracting employees to work, evaluating their abilities, expanding their capabilities and development. the analysis of the external environment from the point of view of human resources consists in collecting general information about the state of the human resources market not only in uzbekistan as a whole, but also in a particular region or locality. changes in the external environment (political and economic factors, international relations, scientific and technological progress) have had a significant impact on personnel management policy, that is, they lead to changes in the price of labor and its migration. the global economic crisis has shown that economic growth indicators in countries such as western europe, the united states and japan, which have expensive labor, tend to decline. in this case, only the rational use of labor will save countries from entering the crisis street. for several years, uzbekistan's gdp has been recording a high figure of 8%, which is the third largest indicator in the world (after china and qatar). the implementation of personnel policy is carried out on the basis of certain laws. this is reflected in the table below: direction of personnel policy content american journal of business management, economics and banking volume 10 march, 2023 p a g e | 154 www.americanjournal.org organizational structure and personnel • the introduction of a new position combining several professions (for example, an accountant for working with documents of the personnel department or a recruitment secretary). • transfer to the partial booking system of some employees • awarding of individual (home) work • dismissal of inefficient employees • selection of promising employees based on individual remuneration motivation system • reduction of the monthly wage system (official salary) and increase in the amount of variable units (bonus) • reduction or cancellation of the social package and additional social money • ensure strict compliance with labor laws • assignment to stimulate the work of employees directly to junior managers (distribution of funds of the fund by determining the effectiveness of the work of employees by organizing the fund of the head) staff selection • refusal of the services of various agencies • assigning the selection of employees and their hiring directly to junior managers professional development • abandon the external form of education, switch to a distance education system • restoration of the work of managers conducting educational events with their employees (exchange of experience, mentoring) internal contacts • development of an internal system of work with the population: organization of internal press, internet communications, work on the bulletin board, organization of regular meetings of the head with the workforce the success of the strategy cannot be realized without a team with a special quality created by leaders. the qualitative and quantitative significance of the team may have different manifestations at different stages of the organization's activities, but the goals and principles will be unchanged. a team is a team organized in such a way that each of its members performs clearly defined tasks that do not overlap with others, performs their tasks with high spirits and helps their partners if they need help. since the development and economic well-being of the country directly depends on the specialists living in it, it can be called a priority concern of the state to ensure the improvement of the abilities of citizens (intellectual, physical and spiritual). this task is being solved within the framework of achieving the goal of human capital development, which will inevitably lead to an increase in the potential of the whole society, as well as an increase in the resources of the whole country. the high potential of society depends on the dynamics of economic growth. therefore, the development of human capital is one of the main tasks of our time. what is needed to solve it? first of all, it is necessary to create the most favorable environment, which in practice cannot be achieved without improving living conditions for the development of the abilities of each member of society, an employee of the enterprise. secondly, it is necessary to increase the competitiveness not only of human capital, but also of the sectors of the economy that provide it socially. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 155 www.americanjournal.org sociologists, economists and psychologists are experts working on solving the problem of improving human resources. their tasks include the development of human capital development issues at three levels: personality development (at the micro level); development of the whole country (macro level); development of enterprises, commercial companies (meso-level). at the state level, human capital is accumulated by the efforts of all members of society, it is national wealth and property. a unique similar resource is formed in each region, which is then aggregated throughout the country. to ensure the development of human capital at the regional level, it is necessary to improve the economic activity of economic entities in a certain region. then, based on the results of the work of each enterprise in the region, the personnel reserve is generalized. the accumulated human capital ultimately determines the level of socio-economic development of the region. adding the number of workers is not enough to measure human capital. it is necessary to calculate all your abilities, knowledge, and the amount of information available. after all, it is this potential that activates production to one degree or another and determines the level of efficiency of the company. the development of human capital, like any other asset, requires investment. investments aimed at the development of human capital are concrete actions carried out to increase labor productivity with one goal. we can associate such events with: organization of therapeutic and preventive measures; expenses related to education; organization of professional training in the workplace; the cost of finding a job, collecting information about prices and wages; expenses related to migration, as well as the birth and upbringing of children. all investments aimed at the development of human capital by specialists are usually divided into: investments in education (special or vocational training, retraining in the workplace, self-education); investments aimed at health care activities, including disease prevention, organization of special nutrition, improvement of living and working conditions, as well as improving the quality of medical care; investments in moving workers to places with better working conditions. investments in education can be divided into formal and informal. the first type includes various educational services offered by the state or organizations with the issuance of final documents confirming the receipt of education. this includes secondary school education, special education, higher education, including second higher education, postgraduate studies, doctoral studies, industrial training, as well as advanced training courses. informal is an education that does not have supporting documents, but is able to enrich a person with knowledge and increase human capital. this is an independent study of literature, any science, sports and art. health-related costs are equally important for productivity. by reducing the number of illnesses and deaths, we increase the duration of the working period, the duration of human labor. thus, we are expanding the influence of human capital. each of us understands that health can be improved to a certain extent, but to a large extent its quality depends on hereditary characteristics. investing in health throughout life is important both for the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 156 www.americanjournal.org individual and for society as a whole. human health is an asset that can wear out. investing in health can slow down the aging and decay process. the features of investments in the development of human capital are as follows: the life of the owner directly depends on their effectiveness. the more investments, the longer a person's life expectancy. and the earlier the investment is made, the faster the return will be visible. the ability to multiply and accumulate, despite the gradual tendency to moral and physical obsolescence. human capital becomes more profitable as it accumulates, but the marginal rate of return is still limited to the end of working age. as soon as a person retires or becomes unemployed for other reasons, the efficiency of his human capital decreases sharply. not every investment aimed at improving human well-being can be recognized as an investment in the development of human capital. for example, if expenses are related to criminal and illegal activities, they are difficult to associate with investments in human capital development because of their social harm and even danger. the nature of investments is determined by the peculiarities of culture, nationality and historical development of the society in which they are carried out. if we compare investments in the development of human capital with other types of investments, it becomes clear that the first one is more profitable both for the carriers of capital themselves and for society as a whole [7]. possible sources of investment activity can be: state; state and non-state foundations, public organizations; regional associations; organizations, legal entities; individual entrepreneurs; national higher organizations and foundations; educational institutions, etc. among all sources, the most important role is played by the state. but don't ignore the importance of individual companies, organizations, entrepreneurs. employers have all the opportunities and conditions for the implementation of training and advanced training of personnel. in addition, organizations have a knowledge base that allows them to have an accurate picture of the most promising investments in education and training. an important factor in business investment is the net return on investment. as soon as there is no profit, the financing stops. after all, why all this investment in hr? strengthening the competitiveness of the company. therefore, the employer strives to use working time and human capital in general in the most reasonable way. since the definition of the ultimate goal of socio-economic transformations serves as the starting point of the strategy of economic reforms, the essence of the following strategic goals in the field of economic reforms in uzbekistan is revealed: 1. the gradual formation of a socially oriented market economy, the creation of a powerful and steadily developing economic system that multiplies national wealth and provides the necessary conditions for people's life and activities. 2. ensuring the protection of private property by the state, which is the basis for creating a multi-level economy, ending the deprivation of property, developing initiative and perseverance by all measures. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 157 www.americanjournal.org 3. granting broad economic freedoms to enterprises and citizens, the rejection of direct state interference in their economic activities, the elimination of administrative and command methods of economic management, the widespread use of economic factors and incentives. 4. carrying out deep structural transformations in the economy, ensuring the effective use of material, natural and labor resources, the production of competitive products, entry into the world economic system. 5. to form people's new economic thinking, to change their worldview, to enable each person to independently determine the scope and forms of spending their labor" [8]. from this point of view, uzbekistan is among the few countries in the world that have a strong social policy and at the same time are working on ways to improve the welfare of the population. an important direction of the country's social policy remains the creation of decent living conditions for the population, the transformation of measures to ensure employment of the population into a beneficial cause for everyone. in addition, the household sector is becoming a reliable source of employment and an increase in family income. at the same time, this effective form of employment acquires an important social significance for attracting women, especially those with many children, disabled people in need of assistance, and other persons with limited working capacity to work. references: 1. president.uz/uz/lists/view/2221 послание президента республики узбекистан олий мажлису 2. бабосов е.м. социология: энциклопедический словарь. от классики до современности. изд.(мфцп). минск. 2009. 480 с. isbn 978-5-397-00009-3 3. корчагин ю. а. современная экономика россии.ростов-на-дону: феникс, 2008. isbn 978-5-222-14027-7 4. цит. по: майбуров и.а. эффективность инвестирования и человеческий капитал в cша и россии. мировая экономика и международные отношения. 2004, n 4, с. 4. 5. марцинкевич в.и., соболева и.в. экономика человека. м., 1995, с. 14. 6. галкина т.п. социология управления: от группы к команде. учеб.пособие. -м.: финансы и статистика, 2004. 7. olimov f.k. the concept of methods for measuring and evaluating human capital. american journal of social and humanitarian research, 3(10), 193–199. retrieved from https://globalresearchnetwork.us/index.php/ajshr/article/view/1570 8. олимов ф.х. инсон капиталини кичик бизнесда қўлланишини баҳолаш мезонлари. журнал социальных исследований, 2022; спец. номер 1. issn 2181-9556 doi journal 10.26739/21819556 9. kholmamatovich z. e. theoretical and methodological approaches to social work with deviant youth prone to harmful habits //theoretical & applied science. philadelphia, usa. – 2021. – №. 12. – с. 102-104. 10. zaitov e. retrospective approach to scientific researches on “orphan hood” at different periods //eclss online 2020a. – 2020. – с. 103. 11. акрамов х. а. х. шарқ ва ғарб маданиятлар тизимида социал капиталнинг қиёсий таҳлили //журнал социальных исследований. – 2022. – т. 5. – №. 4. http://ru.wikipedia.org/wiki/%d0%a1%d0%bb%d1%83%d0%b6%d0%b5%d0%b1%d0%bd%d0%b0%d1%8f:%d0%98%d1%81%d1%82%d0%be%d1%87%d0%bd%d0%b8%d0%ba%d0%b8_%d0%ba%d0%bd%d0%b8%d0%b3/9785222140277 http://ru.wikipedia.org/wiki/%d0%a1%d0%bb%d1%83%d0%b6%d0%b5%d0%b1%d0%bd%d0%b0%d1%8f:%d0%98%d1%81%d1%82%d0%be%d1%87%d0%bd%d0%b8%d0%ba%d0%b8_%d0%ba%d0%bd%d0%b8%d0%b3/9785222140277 https://globalresearchnetwork.us/index.php/ajshr/article/view/1570 https://scholar.google.com/scholar?oi=bibs&cluster=8192267735919371070&btni=1&hl=ru american journal of business management, economics and banking volume 10 march, 2023 p a g e | 158 www.americanjournal.org 12. zaitov e. k., teshayev d. m. family conflict and divorce as a social problem //eurasian journal of humanities and social sciences. – 2022. – т. 5. – с. 1-5. 13. акрамов х. ф. ўзбек социумида (маҳаллада) социал капитал конвертациясининг баҳоланиши //журнал социальных исследований. – 2022. – т. 5. – №. 2. 14. zaitov e. k., fayzullaeva v. a. theoretical basis of employment of population in uzbekistan //asian journal of multidimensional research. – 2022. – т. 11. – №. 2. – с. 133-138. 15. zaitov e., kholnazarova z. social protection of socially orphaned children legal basis //экономика. – с. 254-258. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 157 www.americanjournal.org factors affecting the student’s academic performance under distance learning during the covid-19 crisis (case study of altinbaş university in turkey) abdulaziz boushi1* faculty of businesses and management, graduate business school, ucsi university, malaysia https://orcid.org/0000-0002-9127-700x corresponding author email: ezz.boshi@gmail.com samer sheikh hamdo2 abc horizon academy (pearson btec & ucsi university approved center), head of business administration department, turkey s.hamdo@abchorizon.com a b s t r a c t k e y w o r d s the advent of the covid-19 pandemic greatly disturbs the traditional way of getting an education. the transition from face-to-face to completely online occurs suddenly and in an unplanned way. this study analyzes those factors that affect students' online learning process and whether they play an important role in saving the student's academic year. therefore, to achieve this objective, the seven independent variables, i.e., online learning readiness, emotional competence, information overload, communication overload, satisfaction, and perceived difficulty, were chosen, and the study's dependent variable is academic loss. the study utilizes the quantitative data of 206 students, and the software used for the analysis is spss software. the result shows that all the variables positively affect academic performance except for information overload, which negatively affects academic performance. the study gives valuable implications that are beneficial for higher education institutions. online education, academic year, students, turkey, spss. introduction an academic year is a complete cycle of educational activities that have been executed in educational institutions in a calendar year. the universities and other educational institutes have followed the prepared and specified course curriculum to complete their academic years. it helps to make the students' learning processes complete and makes them more skillful. the academic year at most universities starts in september. however, the study program begins in early october. in june, the academic year ends. the time frame varies from university to university, but the starting month and ending time are almost identical in every university. based on the time frame of the course and the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 158 www.americanjournal.org actual duration, university authorities plan their course curriculum. completing the curriculum on time is considered to complete one academic year in universities. the worldwide pandemic of covid-19 significantly affected the academic environment. the lockdowns caused by the pandemic and the regulatory guidelines for preventing the spread restrict educational institutes from following their regular course curriculum. as a result of this yearly assessment of the students, it might not be possible for the educational institutes to fill the gaps in an academic year. to overcome this issue, the approach of distance (online) learning has been taken into consideration by universities. distance learning facilities aim to offer learning facilities and environments in remote environments that make the learning process more accessible to students. it also allows educational institutes to maintain consistency in a disruptive situation in which classroom facilities cannot be executed. hence, distance learning might be the approach for future learning initiatives due to the restrictions of a global pandemic. like any other industry, the education industry is also significantly affected. as a result, educational institutions are completely closed, and students encounter a disruptive academic environment. to overcome the issue, the concept of distance learning through an academic medium has been considered by educational institutions, mainly higher-level institutions where the learning gap can affect students very badly. the use of the internet medium and virtual tools is considered to facilitate distance learning facilities, which can maintain covid protocols easily and deliver a safe learning experience to the learners (khan, khan, & arbab, 2021). hence, the main purpose of distance learning is to maintain consistency in the academic process by delivering better access to students in any problematic situation. the approach of online learning facilities has numerous benefits over traditional offline studies, which might be greatly helpful in the pandemic situation of the 21st century. as (haider & al-salman, 2021) mentioned, online education delivers additional flexibility to the students and educators who might be useful in the pandemic situation of covid-19 to avoid any educational gap. apart from that, online learning also allows students and accessories to explore the field of study better by analyzing different areas. it might be very useful to bridge the knowledge gap that originated due to the absence of traditional classes for a pandemic. furthermore, online education facilities make students and teachers more open to new technologies and how they can be used in the classroom for learning. it can increase the aspect of future study and environmental betterment. apart from that, opportunities for virtual collaboration have been greatly facilitated through the online assessment during the pandemic. thus, it might be very helpful in developing teamwork skills among the students during the projects. (gelles, lord, hoople, chen, & mejia, 2020) mentioned that self-discipline and other soft skills among students are greatly framed in online learning, which might make the objectives of online learning in the epidemic more successful. due to the global pandemic canceling university attendance and the growing distances between people, some universities have been forced to stop in-person education and switch to e-learning. this has made distance education more important. with the advent of the covid-19 pandemic, many educational institutions opted for online learning as unesco recommended distance learning programs for interrupted education. however, it was difficult for educational institutions to adopt online learning without facing challenges and problems. the studies have identified several difficulties from student and teachers' perspectives in online education. the most identified challenges include limited internet access, unfamiliar information technology, engagement, lack of experience, and learning outcomes. previously, many studies have american journal of business management, economics and banking volume 11 april, 2023 p a g e | 159 www.americanjournal.org analyzed the nexus between student satisfaction, learning efficiency, and online learning. however, limited studies have been done on the predictor that influences student performance in online learning during the covid-19 pandemic. in analyzing the literature focusing covid19 pandemic, the studies have investigated factors that influence student performance. still, none of the studies has examined emotional competence, online learning readiness, information overload, communication overload, perceived difficulty in student satisfaction and performance in online learning at the time of the covid19 pandemic, especially in the case of turkey. therefore, this paper will investigate those factors that affect students and how they perceive these changes, displayed via their satisfaction and performance level. it also will highlight the latest trends in the universities for online education during a pandemic. the study will take altinbaş university in turkey as a case study. 2. literature review (al-maroof, alhumaid, akour, & salloum, 2021) conducted a research which aims to inspect the attitude of undergraduate students toward learning online during the pandemic of covid-19. the outcome of the research shows that all the considered variables, i.e., perceived ease of use; perceived routine use; perceived usefulness; perceived enjoyment; self-efficiency, and perceived critical mass have a positive association with e-learning. another study shows that the students who were using microsoft teams were more satisfied compared to others. focusing on the online education system, the findings can be bifurcated into two aspects, i.e., positive and negative. from the positive aspects, factors like fewer distractions and "home comfort" motivate the students to opt for online learning. while factors such as deficiencies in discipline problems and instant feedback demotivate students to opt for online learning (durak & çankaya, 2020). the outcome of this study identified five themes that affect the students' attitude to opt for online learning. these factors include individual factors, learning environment, instructional factors, and policies. all these factors affect the students' willingness to use online learning (kurt, atay, & öztürk, 2022). (elhadary, elhaty, mohamed, & alawna, 2020) conducted a research which tends to analyze the impact of e-learning and academic performance nexus among turkish university students in the covid19 pandemic. the outcome of this study shows that most of the variables negatively affected the teachers' and students' motivation to use online learning. 60.3% of the participants show anxiety, 41.8% show social problems, and 43.2% of the participants show internet connection as the factor that affects their motivation to opt for online learning. 65% of the students and 48% of the teachers said they were happy with online learning. the outcome of another study shows that socio-economic factors and technological infrastructure play an important role and affect each country's students differently. the results show that students' selfefficacy and attitude play a big role in their cognitive engagement with online learning (aguilerahermida, et al., 2021). (kamarudin, shoaib, jamjoom, saleem, & mohammadi, 2021) stated that emotional, social, personal, and cognitive engagement have a positive impact on students’ intention to use e-learning. moreover, the study showed that cognitive engagement mediates the association between emotional, social, and personal factors and students' intention to use e-learning. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 160 www.americanjournal.org the outcome of another study showed that usefulness and confirmation significantly affect the students' satisfaction. the variables such as subjective norms perceived behavioral control, and attitude affects the students' intention to use e-learning significantly and positively. moreover, satisfaction is identified as a significant predictor that affects the student’s willingness to use e-learning (rajeh, et al., 2021). moreover, (el-sayad, md saad, & thurasamy, 2021) stated that academic self-efficacy affects emotional and behavioral engagement significantly. in comparison, perceived usefulness affects cognitive and emotional engagement significantly. moreover, the teacher's presence affects all three engagement dimensions. in addition, emotional and behavioral engagement significantly affects behavioral engagement. another study showed that e-learning quality is shaped by service quality, the role of the teacher during the process, and overall system quality. online interactions, digital competencies, and interaction between teachers and colleagues, on the other hand, are less significant. moreover, student satisfaction is mediated by the association between student performance and e-learning quality (keržič, et al., 2021). after revising all the above literature, this conceptual model is driven (shown in figure 1): figure 1: conceptual model of the study independent variables perceived difficulty online learning readiness emotional competence communication overload information overload student satisfaction student academic performance dependent variables american journal of business management, economics and banking volume 11 april, 2023 p a g e | 161 www.americanjournal.org 3. methodology the researcher identified independent and dependent factors through his review of previous studies on this subject. the independent variables are emotional competence, online learning readiness, satisfaction, information overload, and communication overload, while the dependent variable is student academic performance. then the researcher writes hypotheses for his research. then, the data is collected through questionnaires and is therefore a quantitative study. finally, the data is analyzed and the results are shown. the sample population of the study will be the students getting master’s degrees in engineering who opted for online learning during the covid-19 pandemic. the sample size of the study will be 500. the population target is concentrated on istanbul altinbaş university. the variable measurement of this study is divided into two types: for the demographic variables such as gender, age, and education level, the nominal scale is used as these variables have no quantitative value. other than the above variables, the ordinal scale is used as these variables are measured on a five-point likert scale. the ordinal sequence will strongly disagree, disagree, neutral, agree, and strongly agree. the questionnaire will be shared with the university students via electronic media. to ensure the reliability of the data, all the collections will be evaluated by doing the pilot study. the collected data will be analyzed using the spss software. the test performed will include descriptive statistics, factor analysis, and regression analysis. 4. results and discussion 4.1 demographic profile table 1 explains the demographic profile of the respondents. in total, 206 respondents were approached to complete the questionnaire and participate in the survey. table 1: descriptive statistics (n = 206) characteristics frequency percent gender male female 138 68 67 33 age 18-25 121 59 26-30 31-35 42 20 20 10 36-40 23 11 education undergraduate 161 78 post-graduate / master's 23 11 others 22 10 medium zoom 58 28 blackboard 53 26 uzem 95 46 courses 1-2 87 42 3-5 72 35 above 5 47 23 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 162 www.americanjournal.org 4.2 mean analysis the findings show that the minimum value is 1 and the maximum value is 5. the mean value is on average 3 and the standard deviation is around 1. 4.3 correlation analysis the correlation analysis explains the association between the variables. the spearman’s correlation is applied and the result is depicted in table 2. the result shows that all the variables show moderate to high correlation. moreover, all the independent variables are positively correlated with the dependent variable. table 2: correlation analysis ec olr sat io co ap pd spearman's rho ec correlation coefficient 1.000 .595** .586** .497** .467** .591** .646** sig. (2-tailed) . .000 .000 .000 .000 .000 .000 n 206 206 206 206 206 206 206 olr correlation coefficient .595** 1.000 .557** .475** .449** .475** .515** sig. (2-tailed) .000 . .000 .000 .000 .000 .000 n 206 206 206 206 206 206 206 sat correlation coefficient .586** .557** 1.000 .577** .437** .552** .622** sig. (2-tailed) .000 .000 . .000 .000 .000 .000 n 206 206 206 206 206 206 206 io correlation coefficient .497** .475** .577** 1.000 .646** .470** .672** sig. (2-tailed) .000 .000 .000 . .000 .000 .000 n 206 206 206 206 206 206 206 co correlation coefficient .467** .449** .437** .646** 1.000 .461** .565** sig. (2-tailed) .000 .000 .000 .000 . .000 .000 n 206 206 206 206 206 206 206 ap correlation coefficient .591** .475** .552** .470** .461** 1.000 .616** sig. (2-tailed) .000 .000 .000 .000 .000 . .000 n 206 206 206 206 206 206 206 pd correlation coefficient .646** .515** .622** .672** .565** .616** 1.000 sig. (2-tailed) .000 .000 .000 .000 .000 .000 . n 206 206 206 206 206 206 206 **. correlation is significant at the 0.01 level (2-tailed). 4.4 reliability analysis in this study, the most commonly used internal consistency analysis is employed, i.e., reliability analysis, in which the coefficient of cronbach’s alpha is assessed. table 3 shows the reliability test results. in addition, it shows the reliability results of the variable items before and after factor analysis. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 163 www.americanjournal.org as seen from the table, the cronbach’s alpha value is higher than 0.6, which satisfies the benchmark criteria given by (hair, hult, ringle, & sarstedt, 2016) and (tabachnick, fidell, & ullman, 2007). it indicates that the collected responses are reliable and can be used for further examination. table 3: reliability analysis a: before factor analysis b: after factor analysis variables n items cronbach's alpha n items cronbach's alpha emotional competence 5 0.834 4 0.796 online learning readiness 5 0.827 2 0.765 satisfaction 5 0.852 2 0.661 information overload 3 0.817 3 0.817 communication overload 4 0.828 2 0.783 perceived difficulty 3 0.862 2 0.992 academic performance 4 0.803 2 0.721 overall reliability 29 0.957 17 0.921 4.5 factor analysis the kaiser-meyer-olkin (kmo) analyzes the sampling adequacy of the response. while bartlett’s test is applied to check the factorability of the matrix combinedly. the kmo test explains the data suitability for factor analyses. the findings show that the kmo value is greater than 0.7, which meets the benchmark criteria of greater than 0.6. bartlett’s test explains the adequacy of the sample, and the value is significant as a p-value < 0.05. 4.6 regression analysis the regression analysis is performed to analyze the association among the considered variables. linear regression acts as a tool that helps us to analyze and understand the causal association between the variables. the results (see table 4) show that the independent variable can predict almost 46% of the dependent variable. the value of vif is less than 10, which shows that multicollinearity does not exist among the variables. the p-value of f-statistics is less than 0.05, which means that a combined effect exists among the considered variables. the result shows that out of 6 hypotheses, 4 hypotheses are accepted, and 2 are rejected. the ec, sat, co, and pd significantly affect academic performance as the p value is less than 0.05, while olr and io show an insignificant association. similarly, all the variables show a positive association with academic performance except for io, which shows a negative association. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 164 www.americanjournal.org table 4: regression analysis variables beta t sig. vif (constant) 0.62 2.48 0.01 ec 0.30 3.53 0.00 1.95 olr 0.08 1.26 0.21 1.72 sat 0.20 2.71 0.01 1.96 io -0.06 -0.84 0.40 2.24 co 0.12 2.03 0.04 1.79 pd 0.21 3.76 0.00 1.60 adjusted r square 0.444 f-statistic (sig) 28.256 (0.000) 4.7 general discussion for the first hypothesis which is related to emotional competence and academic performance, the result shows that the connotation among the two variables is positive and significant. the result implies that students that have high emotional competence can identify and understand the emotional cues in their atmosphere which facilities social interaction. this positive interaction facilitates their capability to give attention to their academic tasks. students with high emotional competence can sustain relationships, regulate stress and emotions, recover from failure, and find new educational opportunities, leading them to control emotional systems' adverse effects on their academic performance. for the second hypothesis which is related to online learning readiness and academic performance, the result shows that the connotation among the two variables is positive but insignificant. the result implies that students that can manage search engines, microsoft office programs, and managing software have high academic performance. moreover, the students willing to learn online have high academic performance. for the third hypothesis which is related to information overload and academic performance, the result shows that the association between the two variables is negative and insignificant. the plausible reason behind this association can be elucidated by the fact that when the information is shared with the student, they can effectively use and evaluate the information for their good if they are unable to comprehend the information or its retrieval is beyond their capacity it can affect their academic performance. for the fourth hypothesis which is related to communication overload and academic performance, the result shows that the connotation among the two variables is significant and positive. the result argued that students with a richer experience in handling communication and autonomy in using social media, such as filtering unnecessary information and requests are less prone to exhaustion. thus, they can concentrate on their studies. for the fifth hypothesis which is related to perceived difficulty and academic performance, the result shows that the connotation among the two variables is positive and significant. the possible reason behind this association can be clarified by the social-cognitive theory, which postulates that individuals can decide their course of action and organize resources that are needed to perform the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 165 www.americanjournal.org tasks successfully. therefore, the students who want to learn and improve their performance challenge their selves by conferring obstacles and opt for difficult learning tasks over easy learning. for the last hypothesis which is related to academic satisfaction and performance, the result shows that the connotation among the two variables is positive and significant. the result implies that students who are gratified with online technology are more willing to take online classes and lectures and have high academic performance. 5. conclusion and recommendations the objective of this research is to analyze those important factors for online learning and how those factors help save the students' academic year. the data was taken from 206 university students to study the association between the variables, and the spss software was used for the analysis. the result shows that out of six, four hypotheses were accepted. moreover, all the variables show a positive effect on academic performance except for information overload, which negatively affects academic performance. this study contributes both theoretically and practically. from the theoretical perspective, this study contributes to the studies related to online learning. from a practical perspective, this study gives implications for higher education institutions. it is recommended that educational institutions, as the first step, should prepare students for online learning. the transition process requires high emotional competence; if they can control their emotions, they will be able to manage their educational loss. the educational institutes should not only provide instructions related to the usage of software but also on how to search online, avoid distractions, and communicate with other students and teachers effectively. such instructions will help those students who think they cannot do online learning. effective strategies that involve regulating, identifying, utilizing, and comprehending emotions should be offered through activities and online instructions. in addition, online counseling sessions should be accessible to students. the study also implies that information overload affects the student’s academic performance as excessive information hinders the learning abilities and knowledge acquisition process. in addition, the presence of unnecessary information confuses the students in identifying the relevant information. therefore, it is recommended that educational institutions should encourage simulation games for academic purposes as these games help to improve the student’s knowledge acquisition. the authors recommend that future studies can perform cross-sectional or comparative analysis to expand the generalizability of the result. moreover, the mediation and moderation effects of the variables can be added. references 1. aguilera-hermida, a., quiroga-garza, a., gómez-mendoza, s., del río villanueva, c., avolio alecchi, b., & avci, d. (2021). comparison of students’ use and acceptance of emergency online learning due to covid-19 in the usa, mexico, peru, and turkey. education and information technologies, 26(6), 6823-6845. 2. al-maroof, r., alhumaid, k., akour, i., & salloum, s. (2021). factors that affect e-learning platforms after the spread of covid-19: post-acceptance study. data, 6(5). american journal of business management, economics and banking volume 11 april, 2023 p a g e | 166 www.americanjournal.org 3. durak, g., & çankaya, s. (2020). undergraduate students' views about emergency distance education during the covid-19 pandemic. online submission, 5(1), 122-147. 4. elhadary, t., elhaty, i., mohamed, a., & alawna, m. (2020). evaluation of the academic performance of science and social science students in turkish universities during the covid-19 crisis. journal of critical reviews, 7(11), 1740-1751. 5. el-sayad, g., md saad, n., & thurasamy, r. (2021). how higher education students in egypt perceived online learning engagement and satisfaction during the covid-19 pandemic. journal of computers in education, 8(4), 527-550. 6. gelles, l., lord, s., hoople, g., chen, d., & mejia, j. (2020). compassionate flexibility and selfdiscipline: student adaptation to emergency remote teaching in an integrated engineering energy course during covid-19. education sciences, 10(11). 7. haider, a., & al-salman, s. (2021). jordanian university instructors' perspectives on emergency remote teaching during covid-19: humanities vs sciences. journal of applied research in higher education. 8. hair, j., hult, g., ringle, c., & sarstedt, m. (2016). a primer on partial least squares structural equation modeling (pls-sem). sage publications. 9. kamarudin, s., shoaib, h., jamjoom, y., saleem, m., & mohammadi, p. (2021). student’s behavioral intention towards e-learning practices through augmented reality app during covid19 pandemic in saudi arabia. interactive learning environments, 1-17. 10. keržič, d., alex, j., pamela balbontín alvarado, r., bezerra, d., cheraghi, m., dobrowolska, b., & aristovnik, a. (2021). academic student satisfaction and perceived performance in the elearning environment during the covid-19 pandemic: evidence across ten countries. plos one, 16(10). 11. khan, u., khan, g., & arbab, k. (2021). creating ‘covid-safe face-to-face teaching: critical reflections on on-campus teaching during a pandemic. journal of university teaching & learning practice, 18(5). 12. kurt, g., atay, d., & öztürk, h. (2022). student engagement in k12 online education during the pandemic: the case of turkey. journal of research on technology in education, 54(1), 31-47. 13. rajeh, m., abduljabbar, f., alqahtani, s., waly, f., alnaami, i., aljurayyan, a., & alzaman, n. (2021). students’ satisfaction and continued intention toward e-learning: a theory-based study. medical education online, 26(1). 14. tabachnick, b., fidell, l., & ullman, j. (2007). using multivariate statistics. boston: ma: pearson. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 167 www.americanjournal.org improving the methodology for assessing the level of tax collection berdiyeva uguloy abdurakhmanovna phd, associate professor of the department of “taxes and taxation”, tashkent institute of finance, tashkent city, uzbekistan e-mail: ugiloy555@gmail.com a b s t r a c t k e y w o r d s in this article, the democratization and renewal of the society in uzbekistan, the modernization and reform of the country’s economy fundamentally reorganize the activities of various sectors in a comprehensive way, the sectors, having acquired their own characteristics, form an integrated system in interdependence, therefore, the reforms implemented in the tax system of uzbekistan are a socially oriented market. it is reflected that it should be aimed at decision-making of the economy and should provide economic stability, free conditions based on democratic principles for the activities of citizens and economic subjects. tax burden, tax system, tax policy, local taxes, property tax, land tax, state budget, local budget, tax trend, tax progression. introduction democratization and renewal of society in uzbekistan, modernization and reform of the country's economy require a comprehensive reorganization of the activities of various sectors. because the fields, having acquired their own characteristics, form an integrated system in interdependence. the reforms implemented in uzbekistan are aimed at establishing a socially oriented market economy and should provide economic stability and free conditions based on democratic principles for the activities of citizens and economic entities. in particular, deepening of economic reforms is a process that goes hand-in-hand with the strengthening of the foundations of the multi-system economy, the development of the private sector, and the implementation of an effective tax system that provides state revenues. ensuring the efficiency of the tax system is of particular importance. revenues and expenditures of the state budget from year to year in our country application of effective mechanisms in the formation of the state budget tax reforms to increase incomes and use them wisely is being done. president sh.mirziyoyev said “... a new tax the main idea of the concept is to reduce the tax burden, simple and sustainable the tax system. this is our economy increase competitiveness, allround convenience for entrepreneurs and investors creating an environment that can be achieved” [1]. for these purposes it should be noted that local taxes also play a role in achieving this. today, the instability of tax legislation, its excessive instructions, orders and other normative documents have a negative impact on the effective functioning of this system. it is also a requirement american journal of business management, economics and banking volume 11 april, 2023 p a g e | 168 www.americanjournal.org of today to improve the tax legislation and prepare and implement a single document in this area. important and effective work is being done by our state in this regard. according to the purpose of the 28th principle of the decree of the president of the republic of uzbekistan dated january 29, 2022 no. pf-60 “on the new uzbekistan development strategy for 20222026”, tax burden on business entities until 2026 it is planned to reduce from 27.5% to 25% of gdp [2]. meeting the needs of the community and local in each country the role of local taxes in stimulating development is taken into account. the revenues of local self-government bodies are included in their budgets from their own sources, i.e. local taxes, in proportion to the costs must provide. in this case, local tax revenues tax, of course, in creating an effective mechanism for the budget in the formation the tax burden on taxpayers must be taken into account, otherwise the tax taxpayer dissatisfaction has a negative impact on the efficiency of the tax system possible. to study the international experience taking into account the mentioned aspects and adaptation to our national practice local tax types in our country serves to increase revenues. 2. literature review the tax burden represents a set of indicators of the country’s tax system. a certain percentage of the income of individual businesses or other taxpayers is paid to the state in the form of taxes or fees [3]. importance of local taxes, their peculiarities and their many scholars have studied the role of budgeting it should be noted that in particular, lars p. feld, friedrich schneider in his view, state and local taxation are local at the local government level sometimes provides for voluntariness in determining tax rates and bases and funding for public services at the state and levels holds the share of all taxes and levies paid in the country in gdp represents the tax burden [4]. these definitions represent the gross tax burden on the national economy. the economic literature emphasizes that the tax burden can be determined not only at the national level, but also for industries, regions or individual taxpayers [5]. scientists and experts have the same approach to determining the tax burden at the macro level. there is no consensus on its definition at the micro level, including at the level of business entities. this is because the source to which taxes are attributed is interpreted differently by the authors. that is, a number of economists determine the tax burden relative to profit or income [6]. the controversy over the micro-level assessment of the tax burden is that most scholars take into account the amount of taxes actually paid. the tax burden on business entities cannot be fully assessed by the amount of taxes actually paid during the reporting period [7]. salvatore bimonte, arsenio stabile development, regulation, various payments and that it is the responsibility of local municipalities to collect property taxes emphasizes. if these tasks are not well implemented and in a systematic way if not, between fiscal policy and urban policy an imbalance may occur [8]. tax burden is the ratio of the sum of all taxes and fees paid by business entities or citizens to the state, local budgets and various funds in a strictly defined manner to the workload, income or other object of taxation [9]. analyze optimal taxation in the context of an endogenous growth model where growth is endogenous as a result of constant returns to cumulable factors. because of their focus on the accumulation of human capital as opposed to innovative activity as the engine of growth, their policy prescriptions are american journal of business management, economics and banking volume 11 april, 2023 p a g e | 169 www.americanjournal.org quite different from ours. by contrast, what we find is that while physical capital accumulation should not be distorted in the long run, both labour and innovative activity should be taxed in the sense that their after-tax returns are less than their marginal products. this is because there is an endowment of time for labour and innovation in each period, beyond the initial capital endowment [10]. in the current literature, taxes are considered as mandatory, non-equivalent payments to the state budget and extra-budgetary funds from individuals and legal entities in accordance with the current regulatory documents [11]. they can be interpreted with some additions to the principle of inequality in taxes. in the scientific literature, the tax system is interpreted differently, when viewed in a narrow sense, “the sum of taxes and other payments collected in the prescribed manner constitutes the tax system” [12]. a number of other scholars have expressed certain opinions about tax principles. in particular, the russian economist n.turgenev recognized such specific principles as equal distribution of taxes accuracy of taxes convenient time of tax collection low cost of tax collection existence of a general rule in tax collection [13]. 3. research methodology the article used the methods of structural analysis, comparative comparison, expert assessment, statistical grouping, economic statistics, multifactor econometric analysis. in addition, the scientific ideas of local and foreign scientists are cited as the theoretical and methodological basis of the research. 4. analysis and discussion of results according to current tax theory and practice, giving priority to the fiscal function of taxes in order to fill the budget cannot form the basis of tax strategy. in order to achieve adequate formation of budget revenues, the introduction of new taxes and the establishment of increased standards of taxation are denied. an excessive increase in the tax burden leads to a reduction of the tax base, which prevents the creation of new business structures and exposes existing structures to mass bankruptcy. for this reason, it is necessary to determine the generalized tax burden at the most favorable level of taxation. in this situation, taxes should not threaten business and investment activities, as well as the standard of living of the population, and should provide the necessary (sufficient) budget revenues. in our opinion, taking this into account, it is appropriate to distinguish the function of applying entrepreneurship from the set of tax functions. in order to ensure the activity of business entities, it is necessary to have a reasonable tax burden. the general direction of taxation in foreign countries has been to reduce the tax burden on profits. as the tax burden increases, the net income of citizens decreases. every citizen will have to work harder to earn their previous income before the increase in taxes. usually, subjects start looking for additional jobs elsewhere instead of improving their productivity in their main workplace. in addition, there has been a change in the rates of vat, income tax and excise duties of the main taxes that form the budget income. the minimum rates of personal income taxes have been increased. as a result of all of them, the tax burden for each taxpayer actually increased. economists-scientists and specialists have researched and analyzed certain shortcomings in the process of formation of the tax system of our country. in particular, the following should be highlighted: american journal of business management, economics and banking volume 11 april, 2023 p a g e | 170 www.americanjournal.org ▪ the priority of the fiscal approach in tax policy was carried out by setting high tax rates in the presence of a large number of benefits; ▪ the tax system has effectively failed to fulfill its important function of stimulating production, as private savings and investment have declined due to the 30.0% tax on corporate income. usually, if the share of taxes exceeds 40.0-50.0% of income, then investment activity stops completely and production decreases; ▪ inequality in the distribution of the tax burden among taxpayers, the main tax burden fell on the income of enterprises, while natural raw material resources, property and income of individuals were taxed at a relatively low level, and they had an insignificant share in the total budget income; ▪ a significant amount of all tax revenues was redistributed through the state budget due to the lack of rational distribution of state and local tax types, attaching taxes to budgets of different levels. it should be noted that the current high rates of income taxation have been inefficient due to the availability of large tax credits. in the practice of applying privileges, it is also allowed to transfer the privilege given to one taxpayer to another as an additional burden. according to some authors, the exemption of agricultural enterprises from value added tax leads to an increase in the tax burden on enterprises that process their products. figure 1. special attention should be paid to the following when tax benefits are used selectively [14] at this point, it should be said that tax credits are a factor that eases the tax burden and are focused on incentives. these are in the form of reduction of the tax base and tax rate, tax exemption, conversion of tax into credit, granting of tax holidays. the tax legislation of uzbekistan also provides for a number of benefits. exemptions are applied selectively rather than targeted, benefiting a certain group of taxpayers. for example, in 2005-2006, newly established farms in the process of agricultural farming were exempted from land tax for a period of 5 years. this helps them stand on their own feet. tax incentives can be divided into two groups: effective incentives and non-effective incentives. in uzbekistan, the second group of benefits is numerous. since the benefits they provide are not significant, they cannot change the economic activity of taxpayers. one of the ways to reduce the corporate tax burden is to use tax credits. a tax credit is an incentive for the government if it provides relief for the payer. the ability to incentivize benefits is often inherent in proper taxes. the effect of benefits on the taxpayer is a primary effect, while the effect on the national economy is a cumulative or secondary effect. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 171 www.americanjournal.org figure 2. information on budget revenues in the republic of uzbekistan by types of taxes as of march 31, 2022-2023 (in billion soums) [15] as we can see in the picture above, the income from direct taxes to the state budget is 44.1%, from indirect taxes 31.0%, from resource payments and property tax 17.1%, state duty and fines 2, it is 7 percent, and other taxes and fees are 5.0 percent. privileges used in the collection of tax from the income of individuals in uzbekistan are full exemption from tax. this benefit applies to some civil servants. in order to benefit from this privilege, it is enough to have a certain profession and work in a government office. benefits here are public and related to employee performance not. the beneficiaries of the profit tax are joint ventures, newly opened enterprises, and enterprises included in the state investment program. tax relief for joint ventures serves to attract foreign capital and is given in connection with the main production activities. however, in practice, joint ventures enjoy benefits even when engaged in trade activities. in uzbekistan, tax credits apply to the main types of taxes, such as income (profit) tax, value added tax, property tax, land tax and other tax and tax-free payments. social benefits are more likely to be used where there is a large population in need of protection, but this requires a strong economic capacity to compensate for the losses they cause. these benefits are more applicable where the state has assumed large obligations. it is clear from the data in the figure that the high tax burden falls on the countries of denmark and sweden, at 48.3 and 46.7 percent, respectively. the theoretically interpreted normative level of this tax burden is much higher than 30%, but in these countries the living standards of the population are high and most importantly the mechanism of tax collection and its operation is much better than in countries with much lower tax burden. economic growth will also be high. at a time when the tax burden in the republic of uzbekistan is 23.5%, the above figures are quite different. this testifies to the effective implementation of tax policy in our country. we can analyze the tax burden over the years from the figure below. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 172 www.americanjournal.org figure 3. the level of tax burden in some countries of the world (as a percentage of gdp) [16] as we can see from the analytical indicators in the above figure data, if we assume that the total budget revenues in tax areas in 2020 will be 100%, in 2021 this indicator rates will increase by 23 % compared to 2020. this will play a major role in further developing production and ensuring economic growth in the country. as shown in the figure above, the full reduction of tax revenues in the prescribed manner in the budget this will lead to an improvement in the economic life of the country. funds directed to the socioeconomic spheres, which are part of the expenditure classification of the state budget, are also made through tax revenues. financing of existing sectors is one of the priorities of the state. as a result of prudent tax policy pursued in the country, significant macroeconomic and microeconomic development will be achieved (figure 4). macro-level refers to the tax system of the whole country, in other words, it means the state’s intervention in the economy, its tax pressure. in this case, the tax burden is distributed to enterprises, industries and sectors. the macro-tax burden is insignificant for each of the legal entities and individuals. because they pay taxes and fees to the budget and extra-budgetary funds from their own income. the tax burden on the general population is calculated as the ratio of all taxes collected by the population to gdp. world experience shows that the tax burden on the population is divided into micro and macro levels. in our study, we also found it necessary to dwell on the tax burden on the population of our country. the impact of the tax burden and tax policy on the macroeconomic situation is very high, and the change in the country’s gross domestic product and national income is directly related to the effectiveness of tax policy. the impact of the tax burden on the macroeconomic situation can be assessed by issues such as the impact of taxes on aggregate demand and aggregate supply, investment climate, consumption, economic stability. taxes are an important source of funding for any state and play an important role in budgeting and regulating the economy. in all countries of the world, taxes are the basis of state budget revenues. the tax burden and the country’s fiscal policy are important factors in achieving macroeconomic stability. the country’s tax burden and tax policy play a special role in achieving economic growth, macroeconomic stability and improving the investment climate, and the need to improve these issues is a key requirement of today’s economy. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 173 www.americanjournal.org figure 4. information on budget revenues in the republic of uzbekistan by types of taxes as of march 31, 2022-2023 (in billion soums) [15] in europe and the united states, land and property taxes are usually an object market each year is set in the range of 0.5-1% of the value. east asia such as china and the philippines property tax rates in countries are about 1-2%, in south korea, the annual property tax is 0.15 times the value of real estate. it is set in the range of 0.5%. many in sub-saharan africa different tax rates relative to different values of assets in countries for example, in kenya, the land tax is set at 10% to 30% possible. in other african countries, the rates are much lower possible. for example, eligible users in rwanda pays taxes on land and buildings at 0.1% of the value of the assets [17]. table 1 property tax revenues in european countries indicators (billion euros) [18] nu. country 2012 2013 2014 2015 2016 2017 2018 2019 1. austria 1,8 2,3 2,0 2,0 2,0 1,9 2,1 2,2 2. belgium 12,6 13,8 14,3 14,4 14,9 15,4 15,8 16,3 3. estonia 0,1 0,1 0,1 0,1 0,1 0,1 0,1 0,1 4. finland 2,4 2,6 2,7 3,0 3,1 3,5 3,3 3,5 5. france 81,4 84,1 86,7 92,1 95,0 100,8 97,4 97,7 6. germany 24,6 26,1 28,2 31,1 33,4 33,6 35,5 37,6 7. greece 5,2 5,7 5,1 5,4 5,5 5,6 5,6 5,9 8. ireland 3,1 3,6 4,2 3,9 3,8 3,9 4,3 4,4 9. italy 43,6 43,9 46,9 46,3 46,9 44,2 44,9 43,8 10. latvia 0,2 0,2 0,2 0,2 0,3 0,3 0,3 0,3 as part of the study of international practice, the property tax rates of 10 european countries were analyzed (table 1). europe compared to other countries in terms of property tax rates. we can see that the highest figure belongs to france (97.7 billion. eur). in italy and germany, property tax revenues are similar 43.8 and 37.6 billion, respectively euro. this is the case in other countries in the table it should be noted that the figure is significantly lower. to conclude possibly property tax revenues in american journal of business management, economics and banking volume 11 april, 2023 p a g e | 174 www.americanjournal.org developed countries much higher than in most developing countries. this is directly related to the development of the private sector in the economy, the living standards of the population and high levels of profitability. 5. conclusions and suggestions we have formulated the following conclusions and suggestions, based on hundreds of split jobs over the years of production in uzbekistan, based on developed jobs, assemblies and direct production: 1. it is not enough to think of the tax burden as a function of the tax rate and the tax base, because it is also a function of the taxpayer’s residual income. therefore, it is not enough to determine the tax collection coefficient to determine the burden. the tax burden should be determined at the micro level, because there will be no taxes applied at the macroand mego-level. it is necessary to analyze this burden in comparison with the tax object, but in addition to the tax paid by the taxpayer, the income remaining at his disposal should also be considered. the financial resource left after tax also determines the limit of the tax burden. this limit serves as a criterion for how much resources can support extended reproduction. 2. it is necessary to apply the tax burden to households, because they are the main subject of the economy. first, the amount of collected taxes is compared with the gross income of the household, and secondly, the income per household is compared with the cost of living. when determining the tax burden on the house, it is necessary to include a part of indirect taxes. the tax burden creates tax pressure, but is not limited to it, as it also includes the terms and conditions of tax payment and its costs. economic incentives are inversely proportional to tax pressure. 3. improvement of taxes means their optimization, the criterion of which is the compatibility of the interests of the taxpayer and the tax collector, the compatibility of the fiscal and incentive functions of taxes. to do this, it is required to redistribute the tax burden, give relief from the profit and personal income tax, and transfer the fiscal losses it creates to other taxes. the above proposals and recommendations will serve to increase state budget revenues and ensure stability in uzbekistan. the above-mentioned scientific and theoretical proposals and recommendations will serve to improve the mechanisms of tax collection, timely and complete payment of taxes to the state budget and further increase budget revenues. 6. literatura/reference: 1. president of the republic of uzbekistan shavkat mirziyoyev appeal to the assembly. 28.12.2018. 2. decree of the president of the republic of uzbekistan dated january 29, 2022 no. pf-60 “on the new uzbekistan development strategy for 2022-2026” 3. malikov t.s. tax burden. what is it? – t.: financier newspaper. 2015 and №6. page 4. 4. lars p.feld, friedrich schneider. state and local taxation//international encyclopedia of the social & behavioral sciences (second edition), 2015. pages 338-342; 5. malikov t.s. should the weight of the tax burden be drastically reduced? tax academy. t.: 2006. page 4. 6. toshmuradov t. tax explanatory dictionary. – t.: labor, 2003. – p.116. 7. kirova e.a. methodology for determining the tax burden on business entities//finance. – m.: 1998. – №. 9. – p. 30-32. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 175 www.americanjournal.org 8. salvatore bimonte, arsenio stabile. local taxation and urban development. testing for the sideeffects of the italian property tax.//ecological economics, volume 120, december 2015, pages 100107; 9. isroilov b. calculation and analysis of taxes: problems and their solutions – t.: uzbekistan, 2006. – p.272. 10. till gross, paul klein. optimal tax policy and endogenous growth through innovation. journal of public economics. – volume 209, march 2022. https://www.sciencedirect.com/science/article/pii/s0047272722000470 11. chernik d.g. fundamentals of the tax system, m .: uniti, 2000; pushkareva v. the history of financial thought and the policy of taxes. – m.: infra.m, 1996. 12. t.s. malikov. current issues of taxes and taxation. “academy”, 163 p. 13. n.turgenev. experience in the theory of taxes//at the origins of financial law. -m.: status, 1998, p.129. 14. u.a. radjabov, j.i. butaev – “issues of improving theoretical and practical aspects of the tax system in the innovation economy” monograph tashkent 2021. 96 pages. 15. prepared by the author based on the official website – www.soliq.uz 16. prepared independently by the author based on the official website – https://taxfoundation.org/state-tax-burden-2019/ 17. center for international development (igc – international growth center) official website – www.theigc.org 18. organization for economic cooperation and development (oecd – organization for economic cooperation and development) official website site information – www.stats.oecd.org https://www.sciencedirect.com/science/article/pii/s0047272722000470 http://www.soliq.uz/ https://taxfoundation.org/state-tax-burden-2019/ http://www.theigc.org/ http://www.stats.oecd.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 131 www.americanjournal.org effects of expatriates' commitment on multinational corporations' international assignment kurbonova dildora murotovna thompson school senior english teacher a b s t r a c t k e y w o r d s this article examines the role of expatriates and workers and to determine the influence of the three-component conceptualization of organizational commitment towards companies along with their environmental reputation in their foreign assignments. the study used a methodological approach in which the questionnaire survey was used to gather quantitative data and other observational methods and concluded that there are several variables in the assessment of employee commitment, and the findings reinforce the significance of those mentioned below for organizational commitment in international contexts. the implications for commitment analysis and the importance of environmental reputation are explored. expatriates, three component conceptualization, employee commitment, organizational commitment, quantitative data. introduction several efforts have been made to characterize 'employee commitment.' numerous attempts have been made to explain 'employee commitment.' the most detailed definition is that of meyer, stanley and stanley. parfyonova (2012) explains interaction from a multi dimensional approach. it felt the responsibility to support and to be member of the system. affective dimension of commitment refers to an emotional connection to and engagement in an institution; a continuance commitment signifies the perceived costs of leaving an organization; and a normative commitment refers to an organization where the obligation to help and be a part of the organization occurs. thus, it can be seen from concepts such as the one described above that the employee's commitment is a relationship between the employee and the institution that he/she (the employee) wishes to continue to serve the organization and to help it accomplish its objectives. they point out that information sharing is vital to the development of fresh ideas amongst workers and to the presentation of new business ideas that are central to a living organisation. as a result, modern companies are struggling to have sufficient expertise and skills to succeed in this challenge by providing successful learning experiences and productive governance. the numerous scholars listed below are united in their opinion that the commitment of employees is critical in terms of improving the efficiency of employees' jobs. it is because it decreases the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 132 www.americanjournal.org intensity of employees doing risky behavior; encourages the ocb of employees, reduces the turnover of employees; make the employee more likely to consider organizational change; and increases the exchange of information amongst employees. employee commitment applies to the social connection of staff to their workplace (allen & meyer, 1990; o'reilly & chatman, 1986). organizational commitment is positively linked to such successful results as work satisfaction (bateman & stasser, 1984; mowday, porter, & steers, 1982), encouragement (mowday, steers, & porter, 1979) and engagement (mathieu & zajac, 1990; steers & rhodes, 1978) and negatively associated consequences such as absenteeeism and turnover (clegg, 1983; cotton & tuttle, 1986). in addition, engagement is a standard and significant concept in behavioral science. researchers are investigating the context to the dedication to gain visibility into the commitment of workers. numerous studies analyze key factors that affect organizational commitment at both personal and organizational, such as individual traits, environment and human management tools in practice (eaton, 2003;gifford et al., 2002; lok and crawford, 2001;rashid et al., 2003). personality characteristics, job role, alternate engagement, social interaction experience and corporate investment are described as a background of commitment (meyer et al., 2002). researchers have also spent much time seeking to build and validate the templates of the previous pledge. meyer et al. (1993) divides the past of commitment into three primary groups, i.e. personal commitment and interest, assumed economic value, and legal motives for the duty to organise. thus, the moderators of commitment is discussed on the basis of these parameters. employee perceptions of management techniques form their workplace engagement (grugulis et al., 2000; kick, fraser, & davis, 2006). hodson (2002) maintains that managerial practices that build employer-employee confidence, mutual trust, and credibility will inspire workers to express pride, commitment, and offer more at work. whereas, apparent bad management behavior is linked to increased worker tension (plankey videla, 2012) and project team infighting (hodson, 2002), research suggests greater degrees of loyalty when workers report good managerial principles (rubin & brody, 2011). good management acts also provide assumed support for work–family policies by managers (allen, 2001; blairloy & wharton, 2004). business owners give greater attention to work-family problems as more women enter the professional labour force, and dual-income households rise, along with higher pressures on workers in a quickly evolving economy (moen, 2011). kirchmeyer (1995) offers three organizational approaches to the work–family environment. some companies split work and non-work life.this approach encourages workers to prioritize employment over other duties and to handle their non-work problems personally and in addition to their daily lives. some organisations, on the other hand, combine work and non-work life. integration acknowledges that non-work practices of employees can negatively or positively mess over to the workplaces and opposite employers take major liability for workers non-work lives to bridge the two worlds. paternalistic practices are very much part of this solution and there is no distinction between work and non-work life (martínez, 2005).other organisations understand the link between work and non-work, but pursue a moderate solution. employers provide services to promote the jobs of staff and non-workers.activities such as flexible working conditions. if 'respect' american journal of business management, economics and banking volume 12 may, 2023 p a g e | 133 www.americanjournal.org fuels rational organizational reaction, paternalism generates reliance on the all-encompassing 'absolute entity,' and 'separation' excludes non-worker lives (kirchmeyer, 1995,p. 518). as commitment is a central term for describing the connection between people and organizations (mathieu & zajac, 1990; mowday & sutton, 1993). commitment identified as one's desire to serve in a specific vocation or as an act of commitment to trust or commitment to one thing or another. (hall,1976). we concentrate on organizations as commitment goals for both conceptual and realistic reasons. from a theoretical viewpoint, we aim to deepen current understanding of how organizational programs influence the relational commitment of workers to certain work organizations. from a realistic point of view, organizational commitment is a great predictor of reduced absenteeism and attrition (for a summary, see below). (meyer, stanley, herscovitch, and topolnytsky 2002). identifying how organizational commitment grows will assist companies in their attempts to improve employee satisfaction, which is critical in markets where organizations are struggling to retain staff, such as retail and service sectors (cascio, 2003). acknowledging that there are many types of organizational commitment, we concentrate primarily on affective organizational commitment. many organizational commitment scholars differentiate between three types of commitment: affective, normative, and continuity (meyer & allen, 1991). while normative and continuous commitment frequently entail sense of responsibility or obligation to be added to it, affective commitment includes feelings of desire. as a consequence, affective commitment is considered to be more linked with positive actions and attitudes than consistency and normative commitment. in a systematic review of the organizational commitment literature, meyer et al. (2002) showed that affective commitment is correlated with the most desirable outcomes for both workers and organizations. it is technically and actually necessary to consider how employee support services can make it simpler. over the past 10 years, authors have challenged the threecomponent model and similar models. (bergman, 2006; solinger et al., 2008; stazyk et al., 2011). these authors argue that the three components are "qualitatively different concepts" the three components of the three component model are considered to be different concepts. (solinger et al., 2008, p. 73). they concluded that the findings of empiric commitment assessment studies suggest that affective or attitudinal commitment has consistently associated more closely with outcomes such as turnover and success, as outlined by significant study meta-analysis (cooper-hakim & viswesvaran, 2005; mathieu & zajac, 1990; meyer et al., 2002; riketta, 2005). for eg, solinger et al. (2008) supported the results of prior meta-analyses (cooper-hakim & viswesvaran, 2005; meyer et al., 2002) that noticed affective commitment more closely associated with absentee than continuance commitment and normative commitment. in an overseas country, the company is part of a set of socio-economic, technical, political and often administrative structures which differ greatly from the environment of its parent and which, together, lead to a divergence from the parent sector (meyer & allen, 1991). the increasing globalization of industry has paralleled the growth in the number of multinational corporate partnerships. when global economic growth expands, more workers are temporarily moved overseas. during such overseas deployments, employees are not only affiliated with the parent company, but can also become part of a local operation. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 134 www.americanjournal.org affective commitment is expected to be correlated with work experiences that make the employee feel "psychologically comfortable" continuance commitment purportedly develops on the basis of the employee's recognition of the investments he or she has made in the organization. normative commitment develops on the basis of those socialization experiences in the individual's early life that encourage sustained commitment to one's employer. this includes both family-based experiences concerning work and cultural sanctions against ''jobhopping'' normative dedication can also be strengthened by certain interactions inside the company that make workers believe that they are bosses. a wide range of work-related interactions and attitudes have been explored in a number of experiments. financial rewards have been the most effective instrument for recruiting and retaining skilled workers. empirical studies indicate that corporate environmental responsibility (cer) is becoming increasingly important. (bhattacharya, sen and korschun 2008; perrini, russo, tencati and vurro 2011). another poll of 1,000 hr professionals, 47 per cent, showed that staff tend to work with organizations with a clear environmental approach. backhaus, stone and heiner (2002) find that environmental and societal commitments had a substantial effect on the attraction of workers. greening and turban (2000) discussed the idea that prospective workers are more likely to be hired by economically and environmentally conscious firms. reference 1. abedi, h., & rastegar, a. (2008). the advent of spirituality in organization: definition and its concepts. journal of management science, iran:100. 2. allen, n. j., meyer, j. p. (1990). organizational socialization tactics: a longitudinal analysis of links to newcomers’ commitment and role orientation. academy of management journal, 33, 847-858. 3. alvino, l. (2014, 29 september). engage your employees or lose billions. forbes magazine. retrieved from 4. angle, h. l., perry, j. l. (1981). an empirical assessment of organizational commitment and organizational effectiveness. administrative science quarterly, 26, 1-14. 5. bartlett, k. r. (2001). the relationship between training and organizational commitment: a study in the health care field. human resource development quarterly, 12, 335-352. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 12 www.americanjournal.org forecasting the exchange rate of the iraqi dinar against the us dollar applied research in the secondary market ibrahim sakran abdullah business administration department, imam al-kadhum college, baghdad, iraq. ibrahim.skran@alkadhum-col.edu.iq hasanain hamed ahmed business administration department, imam al-kadhum college, baghdad, iraq. ha2.iraq2.19782@gmail.com abbas fadel kreah business administration department, imam al-kadhum college, baghdad, iraq. abbasf@alkadhum-col.edu.iq a b s t r a c t k e y w o r d s the special circumstances experienced by iraq have a great impact on the fluctuation in determining the exchange rate, so it was necessary to develop a scientific method that determines the policy of the central bank toward the exchange rate, and this is what we noticed after 2020 iraq turned to an open economy and the central bank followed a policy to stabilize the exchange rate because of its great impact on the stability of the economy in general. where this research was prepared to evaluate this policy towards the exchange rate by estimating the probabilities of change experienced by the exchange rate (decline, stability, and rise) by following the method of prediction and estimation of the probabilities of the causes of the occurrence of the phenomenon and through which the cases of transition from one case to another can be estimated, or to predict the state of stability of the phenomenon in the future. this research consists of two main parts, namely the theoretical side, which contains definitions, and the basis for the existing applied side, where the theoretical side contains the definition of the exchange rate, its objectives, and the factors affecting it. the exchange rate, forecasting, foreign goods, tariffs, general trend american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 13 www.americanjournal.org practical aspect, includes the collection of data, which is represented in the exchange rate of the iraqi dinar against the us dollar issued from the secondary market, the data was obtained through the secondary market (the struggling market). 1introduction: after 2020, the central bank developed a policy to raise the exchange rate, has this policy reached the stability of exchange rates in the long term? the extent to which this policy can be evaluated purely statistically, by calculating the probabilities of exchange rate change, the stability of exchange rates in iraq is very important, so the research shows the theoretical framework in price stability as well as predicting and reaching real results and providing recommendations that serve the stability of exchange rates, the research seeks to achieve the following estimate the probabilities of exchange rate change depending on the current period, predicting the probabilities of exchange rate change in the period of stability of the phenomenon, and the time of reaching the state of stability, the research hypothesis begins: 1there is statistical significance to predict the stability of exchange rates of the us dollar against the iraqi dinar for the coming years. 2there is no statistical significance to predict the stability of exchange rates of the us dollar against the iraqi dinar for the coming years. 2the concept of exchange rate the exchange rate is the central element of international financial economies and as such the polar element. in modern financial thought, (11) it is of great importance in adjusting and adjusting the balance of payments of the country, especially developing countries. it is a term that has many definitions, including the exchange rate is the ratio by which foreign exchange for national currency is obtained. (1) the exchange rate is the number of monetary units in which one unit of a domestic currency is exchanged for a foreign one. (2) a device that links the prices of commodities in the domestic economy and their prices in the world market and the domestic price of goods, linked through the exchange rate (12)(3) 3exchange rate objectives resistance to inflation: an improvement in the exchange rate leads to a decrease in the level of imported inflation and an improvement in the level of competitiveness of enterprises. in the short term, the reduction in import costs has a positive impact on the decline in the level of imported inflation. (4) resource allocation: the exchange rate shifts resources to the international export-oriented goods sector.13 income distribution: the exchange rate plays an important role in the distribution of income between local groups or sectors when the competitiveness of the traditional export sector (raw materials or agriculture) is high. as a result of the decrease in the real exchange rate, this makes it profitable, and the profit accrues to the owners of capital while the purchasing power of workers decreases. conversely, when the exchange rate falls, it leads to an increase in purchasing power (5) american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 14 www.americanjournal.org development of domestic industries: the central bank can depreciate the exchange rate in order to encourage national industry (14), but the devaluation by the central bank protects the domestic market from external competition and encourages exports (6) 4factors affecting the exchange rate: relative price levels: according to the theory of purchasing power parity, when the prices of local goods rise, the demand for local goods decreases, and the price of the national currency tends to decline as it is possible to continue to sell local goods in a good way, and vice versa (8) 5tariffs and quotas: tariffs (e.g., taxes on imported goods) and quotas (restrictions on the illiteracy of goods that can be imported) affect the exchange rate, as this increases demand for domestic goods. (9) 6preference for foreign goods over local goods: increasing demand for a country's exports causes its currency to appreciate in the long run, and increased demand for imports causes the value of the national currency to depreciate (10) 7 types of exchange rates: there are several types of the exchange rate, including (17) 1 nominal exchange rate: it is the measure of the currency of one country that can be exchanged for the value of the currency of another country, currencies are exchanged or bought and selling currencies according to currency rates between each other, and the nominal exchange rate of a currency is determined according to the demand and supply in the exchange market at a certain moment in time, and for this, the exchange rate can change according to the change in demand and supply, and according to the exchange system adopted in the country, the rise in the price of a currency affects privileges for other currencies. the nominal exchange rate is divided into the official exchange rate, i.e., applicable to official current exchanges, and the parallel exchange rate, which is the rate applicable in parallel markets. this means that there can be more than one nominal exchange rate at the same time for the same currency in the same country. 2real exchange rate: the real exchange rate can express the number of units of foreign goods that seek to buy one unit of local goods, and thus measures competitiveness and it benefits economic operators in making their decisions, for example, the rise in export incomes in conjunction with the high costs of producing exported materials at the same rate that pushes to think about increasing exports, but this rise in returns, it did not lead to any change in the profits of exporters, although their nominal incomes increased by a high percentage. 3effective exchange rate: the effective exchange rate expresses the indicator that measures the average change in the exchange rate of one currency relative to several other currencies in a period of time, so the effective exchange rate index is equal to the average of several binary exchange rates, and it indicates the extent to which a country's currency has improved or evolved relative to a group of other currencies. the actual exchange rate can vary in terms of its value given the possibility of different factors such as the base american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 15 www.americanjournal.org year, the list of currencies of the client countries, and the weights adopted in the composition of the basket, if the goal of the index is to measure the impact of the exchange rate change on export returns, bilateral exports will be used to determine the weights of the index, but if the goal is to measure the impact on the balance of payments, bilateral imports will be used to determine weights, and if the goal is to measure the export returns of a commodity or a number of goods of a country to the world, the shares of competing countries of world exports will be used to form weights in the index. as for the base year, a year is chosen in which the economy of the country concerned is close to equilibrium. 4equilibrium exchange rate: it is the price that leads to a sustainable balance of payments balance when the economy is growing at a normal and sufficient rate. 5 – time series: (15) the time series is a set of observations or data that are collected on a particular phenomenon in certain periods of time and often these periods of time are equal was a year, month, day, and other details and the nature of the study and its purpose and consists of two variables, one of which is independent, which is the time variable and the other is a dependent variable, which is the value of the studied phenomenon. 5-1 time series elements: the work of researchers is focused on analyzing the phenomenon into its elements and studying each element separately to identify how the element changes in terms of its nature, amount, and direction, and its elements or compounds can be classified into the following: a – secular trend (t): these data appear when there is instability on average over time and this change may be for the population of a country or gdp or currency exchange rates or profits of certain companies, the general trend has two types, the first is when the general trend is increasing, i.e., positive trend and the second is the general trend is decreasing, i.e., negative direction. b – seasonal variations (s): they are changes that appear identically in specific periods of time the number of passengers on the lines of transport and the sale of clothes at certain times of the year and this situation appears in many applications that apply to seasonal changes, including economic, environmental, commercial, military, medical and others. c . cyclical variations (c): in some cases, changes in the time series are different and are the result of fluctuations in series data such as sales of phones, cars, and others, and can be distinguished from seasonal changes that seasonality changes are in equal periods, while periodic changes occur in different periods. d – irregular variations (i): they are changes that occur as a result of sudden or unexpected events, which result in changes in the time series in a different manner, which requires studying and analyzing their changes, such as the changes that occurred in global prices as a result of the russian-ukrainian war, which has become clear consequences on the global market. 6steps to build a prediction model: (16) there are several steps to building a predictive statistical model, including: american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 16 www.americanjournal.org a.form determination: this is done through the graph of the time series at a particular phenomenon and the study of the behavior of the series accurately through the drawing and then choose the appropriate statistical model for the series data and this is through experience according to previous studies on the one hand and the use of a number of statistical measures in comparison and comparison on the other hand. b. model estimation: here the parameters of the model specified in the first stage are estimated using a number of statistical methods of estimation. cthe validity and accuracy of the model: in this step, the estimated model is taken and a special test is conducted for it by taking the errors of the model and examining them to see the extent to which its data matches the estimated values of the chosen model when the test is conducted and passed, the decision will be made to adopt and choose it definitively and in the event of failure to pass the test, it is completed to determine another statistical model and the same process is done for the second step. d. calculation of the forecast: the final chosen model is used to calculate future predictions with the calculation of forecasting errors and their own confidence units, provided that these predictions are located within the predictive confidence limit with a certain error rate and through these predictions are used to make appropriate decisions. 7types of statistical forecasts: statistical models can be divided when used to predict according to a certain horizon (term or extent) in calculating these predictions and are often of two types: ashort-term forecasting: this type of prediction in which the period of future predictions is very short in its ranges and this uses time series analysis represented by one of the following models: self-regression models, moving average models, and mixed models from the two models previously, and these three types of models are called the box-jenkins linear models represented by arma models. this type is characterized by accuracy and has an important and effective role in the process of making the necessary decisions and policies when applying a particular phenomenon due to keeping up with such predictions of the conditions of the studied phenomenon and simulating it, and there are also other models that use this type of predictions, including models of the self-regression vector var and models of non-linear time series such as the model armax, arch, and others. b. long-term forecasting: this type of forecasting has many future predictions in their ranges so that they take long-term periods of time, and this is when calculating predictions for linear regression models (simple or multiple), as well as some standard models that calculate growth rates for population size, for example. as for the advantages of this type of prediction, it does not keep pace with the continuity of the changes that occur to me the phenomenon studied in the sense that it is inaccurate and ineffective in calculating the future expectations of the phenomenon as it moves away from the circumstance experienced by that phenomenon because of the length of its predictive periods so that it affects the variation of the prediction line and causes its value to increase against the lack of effectiveness of the work of the model. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 17 www.americanjournal.org at the same time, this type of forecasting has an important and significant role in drawing up longterm strategic plans and making decisions for them. 8 – time series analysis: there are several ways through which the time series can be analyzed depending on the type of data specified for the study and in this research the time series will be analyzed by estimating the equation of the general direction, where the general trend is measured by the changes that occur on the phenomenon and for the long level and this vehicle is one of the most important components of the time series and that depends on it in calculating estimates and the value of this vehicle may increase directly with time or inversely with it and this compound can be linear or non-linear, and for the purpose of estimating this compound there are several methods, including (15) amethod of booting by drawing: the method of drawing is one of the primitive methods to determine the shape of the general trend, which gives a simplified and quick picture of that trend, where this method depends on drawing the diffusion form of the data under study and then trying to draw a straight line that approaches most of the points of the diffuse shape and because of the fact that the drawing of the line varies from person to person the attempt to reconcile the graph is difficult and depends on the experience of the researcher himself. bsemi-average method: if we assume that we have a series of data represented by y1, y2, ..... yn size n and the general trend vehicle cannot be represented as follows: �̂� = α + bt whereas: α b parameters of the model of the public linear machines c least squares method ( l s m ): the general trend model can be likened to a simple linear regression model where it contains yt represents the dependent variable and t represents time and is considered the illustrative variable and therefore �̂� = α + bt to obtain the estimators of the parameters of the general direction vehicle, they are by the following equation: b = ∑ 𝑦𝑡𝑡−𝑛 �̅��̅� ∑ 𝑡2− (∑ 𝑡 )2 𝑛 one: α =�̅� – bt whereas: α: the constant limit parameter of the equation of the general trend compound represents b: represents the slope of the component of the general direction by applying one of the previous estimation methods, it is possible to predict the prices of the currencies that will be under study. dmoving average method : american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 18 www.americanjournal.org the moving media method is one of the introductory methods used to estimate the general trend, which is based mainly on the estimated neighborhood points of assessment by taking the average values adjacent to the data to be predicted. 1simple moving average (kma): the simple moving media method relies on an odd number of adjacent data (k) to calculate moving averages and the resulting value will represent the value of the general trend of the value that mediates those values, which m of values and follows from the values where: tt = 1 𝐾 ∑ 𝑦𝑡+𝑗 𝑚 𝑗=−𝑚 whereas: m = ( 𝑘+1) 2 since m represents the values preceding the ti viewing, we will lose m of values at the beginning of the series, and similarly, we will lose the same number of m of yam at the end of the time series, denoted by the symbol (kma). 2centered moving average method: the central moving media method is used when k is an even number, and since the moving media method needs to be the power values in the middle of the values that are used to calculate the moving medium, so a moving average is calculated multiple of the number of even observations to become the process (2kma) where a moving average is made the previous moving media extracted from the second degree to get the central moving averages. exclude the effect of the general trend from the value of the time series: the process of excluding the effect of the general trend, and depending on the type of model is collective, the effect of the general trend is excluded by subtracting the estimated values of the trend from the time series, i.e.: 𝑦𝑡 𝑇𝑡 = 𝑆𝑡 + 𝐶𝑡 + 𝑒𝑡 if the model is multiplicational, the effect of the general trend is excluded by dividing the data of the phenomenon by the value of the general trend, i.e.: 𝑦𝑡 𝑇𝑡 = 𝑆𝑡 * 𝐶𝑡 * 𝑒𝑡 3applied aspect: adata: the data was obtained through the central bureau of statistics, where the data consisted of exchange rates according to the iraqi markets (al-kifah markets), over a period of twelve months and for the year 2021. table 1: selling price rates for 2021 in alkifah markets no. month selling rate in the struggle markets 1 january 1437 2 february 1446 3 march 1445 4 april 1469 5 may 1481 6 june 1488 7 july 1470 8 august 1470 9 september 1469 10 october 1469 11 november 1475 12 december 1475 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 19 www.americanjournal.org banalysis: the data was analyzed using the gertl program and using the general trend model, where several steps are used for analysis as follows: the first step: we are working on drawing the data to know the stability of the time series, as shown as follows: the second step: we work to take the first difference for the purpose of stabilizing the data, then we redraw the data as shown in the following form: the third step: we are working on analyzing the data in the least squares method, as shown in the following table: american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 20 www.americanjournal.org through the above results, it is clear that the model is suitable for prediction, as the calculated f test value appeared (7.365424) with a significance of (0.021786), which is less than the level of significance 0.05, and the analysis also showed that the value of the coefficient of determination r 2 = 0.42, meaning that it explained 42% of the changes in dollar exchange rates. as for the parameters of the linear regression model, the analysis showed that the value of the marginal slope had reached 2.78322 b 1 = with a significant level of 0.0218, while the fixed limit was b. 0 = 1448.08 with a significant level of 0.0001. fourth step: we are working on forecasting for the next 24 months as shown in the following table and figure: table 3: forecast of usd/usd exchange rates for the year 2022-2023 for 95% confidence intervals, t(10, 0.025) = 2.228 obs x1 prediction std. error 95% interval 2022:01 undefined 1484.26 14.4001 (1452.17, 1516.34) 2022:02 undefined 1487.04 14.9026 (1453.84, 1520.25) 2022:03 undefined 1489.82 15.4568 (1455.38, 1524.26) 2022:04 undefined 1492.61 16.0575 (1456.83, 1528.39) 2022:05 undefined 1495.39 16.6997 (1458.18, 1532.60) 2022:06 undefined 1498.17 17.3786 (1459.45, 1536.90) 2022:07 undefined 1500.96 18.0903 (1460.65, 1541.26) 2022:08 undefined 1503.74 18.8309 (1461.78, 1545.70) 2022:09 undefined 1506.52 19.5972 (1462.86, 1550.19) 2022:10 undefined 1509.31 20.3863 (1463.88, 1554.73) 2022:11 undefined 1512.09 21.1957 (1464.86, 1559.32) 2022:12 undefined 1514.87 22.0230 (1465.80, 1563.94) 2023:01 undefined 1517.66 22.8665 (1466.71, 1568.61) 2023:02 undefined 1520.44 23.7243 (1467.58, 1573.30) 2023:03 undefined 1523.22 24.5949 (1468.42, 1578.02) 2023:04 undefined 1526.01 25.4771 (1469.24, 1582.77) 2023:05 undefined 1528.79 26.3696 (1470.03, 1587.54) 2023:06 undefined 1531.57 27.2715 (1470.81, 1592.34) 2023:07 undefined 1534.36 28.1819 (1471.56, 1597.15) 2023:08 undefined 1537.14 29.0999 (1472.30, 1601.98) 2023:09 undefined 1539.92 30.0248 (1473.02, 1606.82) 2023:10 undefined 1542.71 30.9562 (1473.73, 1611.68) 2023:11 undefined 1545.49 31.8933 (1474.43, 1616.55) 2023:12 undefined 1548.27 32.8356 (1475.11, 1621.43) table 2: analysis of data by general trend method coefficient std. error t-ratio p-value const 1448.08 7.54769 191.9 <0.0001 *** time 2.78322 1.02553 2.714 0.0218 ** mean dependent var 1466.167 s.d. dependent var 15.40858 sum squared resid 1503.946 s.e. of regression 12.26355 r-squared 0.424143 adjusted r-squared 0.366557 f(1, 10) 7.365424 p-value(f) 0.021786 log-likelihood −46.01291 akaike criterion 96.02582 schwarz criterion 96.99563 hannan-quinn 95.66676 rho 0.577355 durbin-watson 0.721891 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 21 www.americanjournal.org from the table and figure above, the exchange rates of the dollar against the dinar have been predicted until 2023, the twelfth month of it, where it is expected that the exchange rate (1548.27) against one dollar will reach its current price of 1475 against the dollar, that is, there will be an increase in the exchange rate from the current price to the price in 2023, and that this increase will work to increase the prices of materials and local markets, which requires the central bank the ministry of finance will work to maintain the exchange rate using certain fiscal policies. conclusions and discussion: after the data was collected, a stability test was conducted on it, where the data was found unstable, then work was done to make the data stable by taking the first difference and then the logarithm for it, where the test results for the second time were stable, then work was done to analyze that data using the general trend in forecasting, which showed that exchange rates can reach in 2023 for the twelfth month of it to an exchange rate of 1548.27 dinars per us dollar that is, there will be an increase of 75 dinars per dollar, and this indicates a significant increase in the price of the currency, which will cause significant losses on the local market and direct impact on the iraqi citizen, who must work by the competent authorities to reduce this price or work to sell currencies in higher amounts to maintain the current exchange rate. references 1berk. jonathan , peter demarzo & jarrad harford, " fundamentals of corporate finance " , 2th ed pearson education , p. cm , 2012. 2brealey, richard & meyers, stewart c., principles of corporate finance, 7th ed mcgraw – hil companies, 2003 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 22 www.americanjournal.org 3brealey, richard & meyers, stewart c., principles of corporate finance, 7th ed mcgraw – hil companies, 2003 4brigham . eugene f, joel f. houston (2009)" fundamentals of financial management " 12th ed , south-western, u.s.a 5damodaran, aswath (2008) "applied corporate finance", 3th edition john wiley & sons, inc. , 6ehrhardt, m. and brigham, e., (2003). “corporate finance a focused approach,” 1st edition, mason, thomson. 7ehrhardt, michael c. brigham eugene f, financial management: theory and practice, southwestern, a part of cengage learning 13th ed ,2012 8ehrhardt, michael c. brigham eugene f, financial management: theory and practice, southwestern, a part of cenga, ge learning 12th , 2008. 9ehrhardt, michael c. brigham eugene f, financial management: theory and practice, southwestern, a part of cengage learning 13th ed ,2012 10fisman , raymond and inessa love (2011) ," trade credit, financial intermediary development, and industry growth" , the journal of finance , vol. lviii, no. 1 , feb. 11fredrik weissenrieder , value based management: economic value added or cash value added? , december 1, 1997, fwc ab study no 3, 1999, p:115. 12garcía-teruel, p. j., & martínez-solano, p. (2010). a dynamic perspective on the determinants of accounts payable. rev quant finan , acc, 34, 439–457. doi: 1007/s11156-009-0124-0 13hill , matthew d., kelly, g. wayne and lockhart, g. brandon (2016) , "shareholder returns from supplying trade credit": financial management, vol. 41, no. 1 (spring 2016), pp. 255-280 . 14hung , chih-young & li-han kao ,(2011) " management style of accounts receivable and performance of the firms: evidence from taiwan electronics industry" , management review vol. 30 p 143-148 . 15manaf youssef hammoud, ahlam ahmed gomaa and firas ahmed mohamed,) 2019 ) " decomposition of time series " al-daad library for publishing and distribution , iraq , baghdad. 16sahara hussein zain , 2018 , " using the arima method in forecasting money supply in the iraqi economy " gulf economics magazine , vol 35 17wali, sabreen adnan and kazem, iman alaa, 2020, the impact of exchange rate fluctuations in the general budget of iraq, a case study for the period (2004-2018), hammurabi magazine, no. 35. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 1 www.americanjournal.org improvement of forming cash flow statement based on international financial reporting standards rakhmonov sherzod sherkulovich researcher of the department of "accounting" of the tashkent institute of finance phone: (+99897)-735-17-57, email: sher19840726@gmail.com tolipov islomjon gofirjon ugli student of fiscal institute ubder state tax committee phone: (+99897)-594-42-42, email: islomjontolipov120@gmail.com a b s t r a c t k e y w o r d s this article describes how to prepare a cash flow statement using the direct method based on international financial reporting standards. in our country, only the direct method is used in the preparation of cash flow statements, so the introduction of the direct method by us will help to increase investor confidence in financial statements. cash, cash equivalents, cash flow statement, direct method, operating activity, investment activity, financial activity, financial statement, receipts from customers, payments to suppliers for goods and services, payments to employees, profit tax payments. introduction economy host to subjects financial reports in making main attempt financial condition about report occupies entrepreneurship subject under its ifrs financial condition about initial in the report and under its ifrs the first financial reports cover received everyone in periods one different account policies use need _ entrepreneurship subject of ifrs earlier in practice has been another edits does not apply need _ entrepreneurship subject application yet a must didn't happen new ifrs this ifrs from the deadline before apply permission when done use can other defined of cases except cases, entrepreneurship subject under its ifrs financial condition about initial in the report: (a) ifrss required to be recognized all assets and recognition of obligations need (b) recognition of ifrss the way does not put assets and non recognition of obligations need (c) previous to nas according to asset , liability or of capital one type recognized as , but to ifrss according to asset , liability or of capital another type recognized as _ substances again nonclassification need _ and mailto:islomjontolipov120@gmail.com american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 2 www.americanjournal.org (d ) all acknowledged assets and obligations in assessment ifrs use need _ [1] entrepreneurship subject under its ifrs financial condition about initial in the report who uses account policies it on previous nas the same that's it to the date used account from policies difference to do can _ of this as a result surface coming corrections to ifrss transition from date before happened giving operation and events as a result appear will be therefore , entrepreneurship _ subject this corrections to ifrss transition on the date straight away not distributed in favor ( or , appropriate if , of the capital another in the category ) recognition need accordingly, financial condition about and benefit and harm about reports make up from being after money currents about the report make up opportunity gives _ financial reports financial of the report international standards according to make up necessity uzbekistan republic president 's order of february 24, 2020 no. pq-4611 " financial of the report international standards transition according to addition measures about ” gi to the decision basically defined . [2] from this come came out without , money currents about the report international standards based on make up necessity is determined . international in practice invest main attention financial of the report from the forms one has been money currents about to the report points . the reason is to the subject how much money entrance and output a lot that it was their interest the ground wakes up . literature analysis vvkovalyov, a russian scientist, stated that "money is the sum of funds of the enterprise in which money (cash or non-cash) is in circulation" [3] . according to y. brigham, the concept of "cash flow" is the net funds received by the enterprise during a certain period[4]. economist iablank considers cash flow only from the point of view of investment activity: " cashflow studied as the main indicator describing the impact of investments in the form of money returned to the investor. the basis of cash flow on investment is material and amount of depreciation of intangible assets and profit" [5] . according to foreign economists b. needles, h. anderson and d. caldwell, "money is the main measurement unit of commercial activity accounting in current financial sources." b. needles stated that "money means money in the cash register of the enterprise and in the account number in the bank, as well as money equivalents" [6]. aakarimov, frislomov and azavlokhlovov "since money is the intermediary in all calculations, naturally, in order to ensure the uniform circular circulation of funds in the national economy of the republic, all the mutual payments and mutual settlements must be made correctly and on time. in turn, it has a serious impact on the timely and effective implementation of payments, settlement and credit transactions " [7]. the national accounting standard of the republic of uzbekistan no. 9 bhms is called "cash flow statement" [8]. based on clause 5 of this standard, cash is defined as cash on hand and demand deposits, as well as funds in the bank's settlement, currency and other accounts. cash equivalents are defined as short-term, highly liquid investments (financial investments) that can be quickly and easily exchanged for a certain amount of money and are more numerous due to changes in their value. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 3 www.americanjournal.org according to the international standards of financial reporting, cash is defined as follows in paragraph 6 of ias no. 7: "cash includes cash and demand deposits". the cash equivalent is "short defined as long-term, highly liquid investments that can be easily converted into fixed amount of money and have an insignificant level of risk in terms of changes in value [9]. research methodology in order to reveal the procedure for compiling the cash flow report using the direct method in the research process, this article includes the analysis of selected literature, grouping, analysis, synthesis, induction, deduction, comparative comparison, data collection and economic research. as widely used as mathematics. analysis and results discussion ( main part ) money currents about report , other financial reports with together when used , to users household of the subject pure in assets changes , their financial structure ( liquidity and payment ability ) . and is changing opportunities and to the circumstances adaptation in order to his own money currents amount and to the deadlines influence show get ability evaluation for information with provides . money currents about data household of the subject money funds and their equivalents cause release opportunities in assessment is useful , and different to users household subjects belongs to upcoming money of streams the current ( quoted ) value evaluation and to compare models work exit enable gives _ [ 10 ] money currents about report from him to users household host of the subject financial in the situation changes to evaluate possibility gives them _ report during how much money fell and how much money came out about information with provides . money currents about report money receipts and payments three main to the category divides : operational , investment and financial activity _ operation activity as a result come coming out money of streams amount economy subject of financing external sources appeal without doing , own operational from the activity surface came debts pay , own operational activities walking ability save , dividends to pay and new investments to do for enough has been money flows where level harvest that he did reflection bringer main is an indicator . operation from the activity previous in periods come came out money of streams separately structural parts about information , other data with together , operational activity according to harvest to be upcoming money flows forecast in doing is useful . operation activity according to money flows reflection continue [ 11 ] ( in bhms the following open not given ): entrepreneurship subjects operational activity according to money flows directly method apply through in the report show is approved . directly method apply as a result upcoming money flows evaluation for useful to be possible was and indirectly method in application reflection undeliverable data is provided . directly method when used , gross money receipts and gross money of payments main categories about information the following roads with get can : entrepreneurship of the subject accounting account from the information ; or generalized income about in the report reflection to be performed from selling income , sale cost ( financial institutions for percentages and so on revenues and percentage expenses and so on costs ) and another substances to the following correction via : period during commodity in reserves and operational receivables and creditor in debts changes ; american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 4 www.americanjournal.org another money funds non-moving substances ; and investment or financial activity according to money flows cause emits another substances . economy host subject operation from the activity to the body came money funds movement of the following open using _ gives : gross money receipts and gross money ransom demands main types open to be given directly method; indirectly method . to this method according to pure income or to the detriment current assets and of obligations not sure about the change operations as well operation investment or finance activity as a result received revenues and seen to damages looking change is entered . [ 12 ] bhxs: to ias 7 according to , entrepreneurship of the subject money currents about information , financial from the report users for , entrepreneurship of the subject money funds and their equivalents harvest to do ability and this money from streams use in assessing their needs basis as is useful . money currents about report period during money flows operational , investment and financial activities according to classified without show need _ consistent categorization : for money in did not find operations not included ; that's right or curve method applying ifrs 7 is correct method to apply recommendation is enough ; finance organizations reports on a net basis make up enable gives _ economy host to subjects money currents about the report make up , calculate principle action does not from this come came out without , money currents about the report directly method make up for operational of activity money funds flow determination for the following to indicators attention focus should : 1. from customers income _ 2. goods and services for delivered to the givers payments ; 3. to the employees payments ; 4. benefit tax according to payments . money currents about reports in making , first of all , international standards based on created financial condition about report and benefit and damages correct from the report is used . 1 table . abc company financial condition about from the report applications year per head year to the end assets : from customers removable accounts 55,000 47,000 reserves 110,000 144,000 goods and services for given advances 5000 1000 delivery to the givers payable accounts 43,000 50,000 to work right to pay according to obligations 9,000 10,000 payable current benefit tax 5000 3000 source : * data the author by created american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 5 www.americanjournal.org 2 table . abc company benefit and damages about from the report applications " profit or damage ” section income 698,000 realization cost 457,000 period expenses 116,000 source : * data the author by created 3 table .year for addition data main of means depreciation 37,000 main tools from selling harm 3000 to work right to pay according to expenses 58,000 current benefit tax 18,000 source : * data the author by created above indicators determination for each _ indicator formula [ 13 ] . cause let's go : 1. from customers receipts . income ± receivable of accounts decrease ( increase ) ∓ in advances received from buyers ( increase) = from buyers receipts from customers receipts = 698000 + 8000 = 706000 above in the formula revenue benefit and harm about from the report , which can be obtained account and from buyers received advance while financial condition about report through is taken . 2. goods and services for delivered to the givers payments . delivery of goods to the givers payments = sold product cost + period costs wear and tear according to costs are the main ones tools from selling damage to labor right to pay according to expenses ∓decrease (increase) in reserves of ∓accounts payable decrease ( increase ) delivery of goods to the givers payments =457000 + 116000 – 37000 – 3000 – 58000 + + 34000 – 4 000 – 7 000 = 498000 3. to the employees payments . to the employees payments = to labor right to pay according to costs ± labor right according to of obligation decrease ( increase ) to the employees payments = 58000 – 3000 = 55000 4. benefit tax according to payments . benefit tax according to payments = current benefit tax according to cost ± payable current of tax decrease ( increase ) benefit tax according to payments = 18000 + 2000 = 20000 above formulas through money currents about of the report operational from activity pure money currents is determined . money flows pure basically reflection continue : the following operational , investment or financial activities according to come coming out money currents in the report pure basically to be shown can : a) customers on behalf of received money receipts and done increased payments , if money currents entrepreneurship of the subject not but _ of the client activities reflection if _ and american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 6 www.americanjournal.org b) fast rotating , large in quantities and turn off term short was substances according to money receipts and payments . in clause (b). telling passed money receipts and to payments the following according to done spots and payments example be takes : (a) credit cards to the owners belongs to main amounts ; (b) investments buy get and sell _ and (c) other short term debts , for example , extinguish term three months and even less _ was debts . [ 14 ] investment activity as a result of money flows separately disclosed reach is important because such money currents future income and money flows get for intended resources for how much expenses spent reflection makes _ financial condition about in the report to asset recognition take coming expenses only investment activity as classification can _ investment of activity money funds flow determination for : main tool and another long term assets buy get and sell _ financial investments buy get and to sell attention is directed . financial from activity come coming out money flows separately show is important because this economy the subject financing parties upcoming money to the streams has been requirements in advance to know for is useful . financial activity as a result harvest to be money to the streams the following includes : actions or another share tools from release coming money receipts ; of the enterprise shares buy get or from handling release for property to the owners payments ; debt obligations to pay interests according to payments ; dividends according to payments . economy subject investment and financial from activities come coming out gross money receipts and gross money of payments main categories in the report separately to show need _ the following operational , investment or financial activities according to come coming out money currents in the report pure basically display can : (a) customers on behalf of received money receipts and done increased payments if money currents economy of the subject not but _ of the client activities reflection if _ and (b) fast rotating , large in quantities and turn off term short has been substances according to money receipts and payments . financial of the institute the following from activities come coming out money currents in the report pure basically display possible [ 15 ]: (a) extinction the date strictly defined deposits acceptance to do and back to give according to money receipts and payments ; (b) other financial in institutions deposits placing and back get _ and (v) to customers separated lumps and loans and lumps and of loans to be returned . money currents about of the report operational , investment and financial of their activities sum money funds and of equivalents pure increase or decrease harvest does _ shareable investments money to equivalents does not enter , from that they are , actually money _ _ funds equivalents was cases american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 7 www.americanjournal.org exception , e.g to extinguish short lifetime while remaining buy received and extinction term sure defined preferential shares in the example like _ (not cited in 9th bhms ) [ 16 ] period per head and period to the end money funds and of equivalents difference money currents currency courses of change effect determination enable gives _ foreign in currency reflection delivered money flows bhxs 21 " currency courses of changes effects". according to way present will be done . in this in reality to the course approx equal to was _ exchange course to apply permission will be done . for example , foreign in currency operations reflection carry on or foreign doubt entrepreneurship of the subject money flows one from currency another to currency transfer for known period for average drawn exchange course application can _ however , according to bhxs 21 foreign doubt entrepreneurship of the subject money flows functional to currency in transfer report of the era at the end exchange course to apply permission not done . from the above come came out without , money currents about of the report directly method according to created shape cause let's go : 4 table . money currents about report directly method money funds movement about report 20__ from 1_____ to 1_____ has been period for operation from activity money of funds movement from sale revenue + 706,000 delivery of goods to the givers payments ˗ (498,000) to the employees payments ˗ (55,000) benefit tax according to payments ˗ (20,000) operation from activity money of funds status + 133,000 investment from the activity money of funds movement main of means taken ˗ (220,000) main of means to be sold + 5000 precious of papers buy taken ˗ (72,000) precious of papers to be sold + 103,000 investment from the activity money of funds status ˗ (184,000) financial from activity money of funds movement simple from printing shares revenue + 150,000 bank loans revenue + 100,000 bank loans extinguish ˗ (50,000) interests according to payments ˗ (23,000) dividend according to payments ˗ (94,000) financial from activity money of funds status + 83,000 money of funds in the situation pure changes + 32,000 year per head money funds 15,000 year to the end money funds 47,000 source : * data the author by created summary and offers . more than ifrs 166 in the country is used . in uzbekistan the following organizations based on ifrs account conduct and report submissions required : than 2000 shareholding societies , commerce banks , insurance companies and big tax payers ; american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 8 www.americanjournal.org step by step the state per share have was enterprises and state enterprises . this organizations accounting service according to ifrs in the state certified at least three to a specialist have to be need _ [1 7 ] financial reports in making count principle through done increase process to the road put , but money currents about report for while count principle a must not _ accordingly _ money currents about the report in making international from experiences wide used without directly method through make up to the goal according to of this as a result of investors financial to reports more trust and of interest to increase is achieved . money currents about of the report operational , investment and financial activity according to indicators in determining their composition of the following consists of to be to the goal according to: 1. operation activity : product , commodity and the service sell _ goods and services delivery of goods to to the givers payments ; from royalties (patent, copyright from the right usage for payments and etc. ), various in the description awards , interest from income , commission from fees and another incomes ; enterprise to employees paid payments , operational expenses ; goods are material of reserves reduction ; goods are material of reserves increase ; trade and mediation purposes to be built transactions according to of money come fall _ paid interest ; current obligations increase , including investment and financial to the activity not included income tax ; current obligations reduction , including investment and financial to the activity not included to income tax _ without money costs : a) main of means and intangible of assets depreciation , natural of resources decrease b) to debts about valuable papers according to of discounts depreciation ; without money transactions : a) to debts about valuable papers according to don't overdo it depreciation 2. investment activities : land , buildings , equipment , intangible and another long term assets from selling receipts ; land , buildings , equipment , intangible ( for example , patents ) and another long term assets buy get payments , capitalization with depends experimental design to work payments , and contractors attraction without doing enterprise by to be created land , building, equipment payments ; other of organizations shares or another debt obligations out from departure / sale inputs ( money funds considered as equivalents or sale for stored obligations for will be from payments except ); other of enterprises to shares or debt obligations investments . in capital participation reach per share contributions ( money funds equivalents calculated or sell for stored payment documents according to from payments except ); other to enterprises given of spots return and of debts from payment inputs ( operational activity was percentage from income except ); other to businesses given spot payments and debts . american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 9 www.americanjournal.org 3. financial activity : actions from release came money funds ; private buy received shares for payments ; debt from funds came income ( issued promissory notes , bonds , pledge letters and another short and long term credit and debts ); credit and of debts payable ( operational of activity debts according to from interest except ); to shareholders dividends to be paid and of capital another kind of distribution . of shares from release came money financial rent with depends was obligations according to payments . [1 8 ] economist of scientists opinions generalized without " money to the concepts of " funds " . new definition given : " money funds liabilities immediately with recovery for use possible was kind of funds . money funds financial in institutions current in the charts balances , cash bills , coins , currencies , in the cash register cash money and financial institutions by term deposits and from handling release for acceptance done money documents ". today's in the day money currents the report in making and his in practice some to mistakes the way is being placed . and this report shape perfect level from not being formed proof gives _ that 's why « money flow "about". report to the shape some changes input to the goal according to will be was _ that is , first of all , the present in practice being used report in the form of of the enterprise money funds whether and output one report period in the form of reflection reached _ however , enterprises different activities one how many yearly periods according to study , analysis to do and evaluation _ to the goal is appropriate . « money currents "about". report in the form of " accounting ". balance " (form 1) and " financial results "about". report (form 2) forms like two report period reflection carry on gave good results would be second , the present in the day in practice was this report in the form of money funds every action _ activity types according to separately in divisions classified . summary by doing that's it we say maybe money _ currents about the report directly from the method used without make up and him present reach as a result of companies financial reports international standards based on formation opportunity more increases and in practice this form in making surface coming problematic ones eliminate to do and investors for money currents situation this from the form in determining to amenities take to come service does _ source and literature list 1. denorbekov, antoraev, sh.sh.rakhmonov. international standards of financial reporting. – study guide. t.: "economics and finance" 2019. 332 p. 2. decision of the president of the republic of uzbekistan dated february 24, 2020 no. pq-4611 "on additional measures for the transition to international standards of financial reporting". 3. kovalev v. v. (ed.) finance (3-e izd., pererab . i dop.) publisher : "prospekt" isbn : 978-5-39218570-2 2016. 928 p. 4. y , gapensky l financial management full course v 2-x t. / per. english pod ed. v.v. kovaleva. spb economic school, 1997 +497p. 5. blank i.a. upravlenie finansovoy bezopasnostyu predpriyatiya / i. a. blank. — kyiv: nikacenter, 2009. 6. needles b., anderson h., caldwell d. principles of accounting. per. s ang pod. ed. prof. yes. v. sokolova 2e izd., stereotype m.: "finance and statistics", 1997. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 10 www.americanjournal.org 7. karimov a.a., islamov f.r., avlokhlov a.z. accounting. textbook. t.: "sharq" nmak, 2004. 592 p. 8. cash flow statement national accounting standard of the republic of uzbekistan no. 9 bhms. standard of the ministry of finance of the republic of uzbekistan , registered on 04.11.1998, list number 519, effective date 04.11.1998. 9. no. 7 bhxs. cash flow statement. https://www.mf.uz/media/file_uz/audit/2022/msfo/uzb_gvt_bb2022_a_ias07.pdf 10. https://lex.uz/docs/-4746047 11. accounting account international standard 7. cash flow statement https://fayllar.org/ozbekistonrespublikasi-v4.html?page=22 12. accounting account national standard 9 13. https://uz.wikisko.ru/wiki/cash_flow_statement 14. accounting account international standard : ias 7 15. https://tfi.uz/docs/oub/edition/%d0%98.%d0%9e%d1%87%d0%b8%d0%bb%d0%be%d0 %b2-%d0%8e%d0 %a3%d0%9c-%d0%9c%d2%b2%d0%a5%d0%a1-%202019-202014.02.2020.pdf 16. ifrs academy https://ifrs.academy/uz# 17. https://tfi.uz/storage/doc-pages/78/original/cc5caf8c621b3f9637accf174e20486dc3dab1c6.pdf https://www.mf.uz/media/file_uz/audit/2022/msfo/uzb_gvt_bb2022_a_ias07.pdf https://lex.uz/docs/-4746047 https://fayllar.org/ozbekiston-respublikasi-v4.html?page=22 https://fayllar.org/ozbekiston-respublikasi-v4.html?page=22 https://uz.wikisko.ru/wiki/cash_flow_statement https://tfi.uz/docs/oub/edition/%d0%98.%d0%9e%d1%87%d0%b8%d0%bb%d0%be%d0%b2-%d0%8e%d0%a3%d0%9c-%d0%9c%d2%b2%d0%a5%d0%a1-%202019-2020-14.02.2020.pdf https://tfi.uz/docs/oub/edition/%d0%98.%d0%9e%d1%87%d0%b8%d0%bb%d0%be%d0%b2-%d0%8e%d0%a3%d0%9c-%d0%9c%d2%b2%d0%a5%d0%a1-%202019-2020-14.02.2020.pdf https://tfi.uz/docs/oub/edition/%d0%98.%d0%9e%d1%87%d0%b8%d0%bb%d0%be%d0%b2-%d0%8e%d0%a3%d0%9c-%d0%9c%d2%b2%d0%a5%d0%a1-%202019-2020-14.02.2020.pdf https://ifrs.academy/uz https://ifrs.academy/uz https://tfi.uz/storage/doc-pages/78/original/cc5caf8c621b3f9637accf174e20486dc3dab1c6.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 145 www.americanjournal.org risk assessment for enhancing the effectiveness of textile industry enterprises bahadirov numonkhan kamolkhanovich, fergana polytechnic institute, independent researcher a b s t r a c t k e y w o r d s as a result of the research carried out in this article, the main stages of the qualitative analysis of the risks arising in the improvement of the efficiency of the textile and clothing industry are formed and based. also, their brief descriptions are given and specific features of qualitative risk analysis are described. textile industry, efficiency, risk analysis, risk, assessment. introduction the presence of a significant element of uncertainty that shapes both the behavior of each individual firm and the dynamics of the system's development as a whole characterizes the conditions of market economic systems, where this activity of economic entities is the hallmark. a set of factors that cannot consistently predict changes in the individual parameters of the system and the behavior of its participants define this economic uncertainty. its objective aspect, which means that the presence of uncertainty is a necessary precondition for the development of market relations because this uncertainty reflects the actual reality that exists in some areas, distinguishes uncertainty from risk. this is further explained by this nature of their communication and the lack of adequate analytical assistance capable of addressing the complete area of management decisions made by economic entities. in light of this, scientists have created the economic category of "risks" derived from this concept in order to qualitatively and quantitatively measure the degree of influence of the factor of uncertainty. as a result, this category describes the subjective level of the realized threat that the appropriate management decision has been made by the economic entity. literature analysis according to morev, "risk is the end result of either inaction or action, which describes the real possibility of unforeseen consequences of various kinds, which can then have both positive and negative effects on the financial and economic activity of the enterprise. "acknowledging that risks can be positive or negative, risk optimization helps find a balance between the downside of risk and the benefit of operating or operating under risk conditions1. 1 morev k.s. otsenka riskov finansovo-hozyaystvennoy deyatelnosti predpriyatiya. problemy upravleniya rynochnoi ekonomikoi: mejregionalnyi sbornik nauchnykh trudov. 2015. s. 34–37. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 146 www.americanjournal.org gabunia n.g. and korelin k.v.'s research suggests that businesses should use risk management to avoid costly mistakes in analyzing potential risks and balancing potential benefits with potential problems. the accurate identification of the risk and subsequent management of it determine the financial standing of the corporate entity. according to stebner et al., "a business risk management system should be based on a specific sequence of actions aimed at identifying, evaluating, and either preventing risk or reducing it to an acceptable level." research methodology this article is devoted to the effective evaluation of potential risks that may come from the use of risk in resolving the uncertainties seen in the operations of textile industry firms. and many additional techniques are employed. analysis and results when compared to levels and values calculated based on the assumptions of the most logical use of resources and the acceptable scenario, production risk is the likelihood of losing some resources and not earning any money as market conditions change. according to gubin n.g. and korelin k.v. research, there are three main factors that can be used to define risk: competitiveness, the presence of a subjective need to make a choice in order to reap certain benefits or prevent unfavorable outcomes, and the information gap brought on by the impossibility of obtaining complete economic information. owing to the current state of the market, it is conceivable to accept small economic levels that could pose a risk, but it is hard to make a thoughtful decision because it is impossible to predict the dynamics of specific processes with sufficient accuracy owing to randomness.2 a source of potential risk and material losses, or a source of possible opportunity and financial gain, are the two ways that risk is traditionally thought of. it should be highlighted, though, that contemporary risk managers have adopted a dual understanding of risk as, on the one hand, the prospect of possible risk realization and, on the other hand, as a phenomenon that can be efficiently controlled. increasing revenue and reducing the enterprise's cost parameters. risk optimization assists in striking a balance between the downside of risk and the advantage of running or operating under risk conditions, taking into account that risks can be either positive or negative.3 research shows that risk management in its modern sense should cover a number of areas of management activity (figure 1). 2 gabunia n.g., korelin k.v. ekonomicheskaya bezopasnost predpriyatiya i upravlenie riskami. izvestia sankt-peterburgskogo gosudarstvennogo ekonomicheskogo universiteta. 2015. no. 4. s. 79–81. 3 shtebner s.v., chubrina k.a., lebedev i.a. factors of economic development of enterprise textile industry. technology tekstilnoy promyshlennosti. 2018. no. 5. s. 51–54. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 147 www.americanjournal.org figure 1. directions of modern risk management in considering the above, the primary objective of management in the field of risk management is to establish such conditions that even the worst-case scenario only results in a slightly determined decrease in the level of the intended result, preserving the enterprise's guaranteed viability. since the financial health of the business entity depends on the accurate identification of the risk and its subsequent management, the process of assessing the current risks and the associated analysis demand special attention. both qualitative and quantitative theoretical techniques have historically been used in such evaluation. in this work, we suggest applying a qualitative approach to economic and mathematical analysis methodologies to identify the cause-and-effect links between a collection of complicated economic occurrences and further evaluate them, which cannot be done using a quantitative strategy. since not all phenomena can be expressed quantitatively. this can be accomplished by taking into account the primary phases of qualitative analysis in the risk management process depicted in figure 2. figure 2. a qualitative approach to the stages of risk assessment 1 direction 2 direction 3 direction risk management guidelines continuous observation of the internal and external environments in which the business operates for the occurrence of events that could pose a threat to safety or act as a source of hazard. establishing processes for organizing actions to reduce already-existing risks and putting preventative measures into action to stop them from happening. evaluating and analyzing the possibilities of eliminating existing risks or obtaining certain material benefits, developing measures to optimize them. 4 direction following up on the execution of the developed strategies, assessing the outcomes, and modifying the pertinent risk management policy as needed. і stage іі stage ііі stage іv stage v stage a qualitative approach to the stages of risk assessment analysis of the organization's potential to counteract external challenges, its existing financial and economic status, and its future growth. identification of risks (identification of the list of risks that are likely to pose a risk to the enterprise). diagnostics of risks (identified sources, identified risks, assessment of the financial and economic consequences of their implementation). identifying the elements that influence the types of risks that have been discovered, the techniques the company uses to try to reduce those risks, and the extent and nature of the external environments influence аниқлаш. develop directions for effective risk management, develop specific management solutions for their subsequent elimination. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 148 www.americanjournal.org the first stage of the qualitative analysis entails a thorough economic evaluation of the enterprise's current state, identification of the major issues and potential risk factors at the organizational internal level, and a thorough examination of external economic factors, which entails understanding the risks and potential directions for both development and improvement. the second stage is pinpointing specific issues that could either provide a short-term or long-term danger to the organization's ability to operate sustainably. the qualitative diagnostic of hazards, or the determination of their unique origins and potential effects of activation, is the third stage. the investigation of external environmental elements, which have a direct impact on the degree of exposure to a particular risk, is necessary for the fourth stage. the analysis of the factors should also be taken into account in regard to any potential business riskreduction actions that might be implemented. creating particular management strategies to control or eliminate recognized risks is the fifth phase. as a result, the procedures outlined above for a qualitative assessment of the risk of enterprise activity demonstrate the difficulty and impossibility of applying a fragmented approach to the process of understanding this issue and developing suitable measures. the fergana region's textile industry was chosen for this study, and it should be highlighted that highly encouraging tendencies are emerging in the growth of this area's economy. in example, in 2021, despite the industry's overall decrease, the textile industry ranked among the top producers in terms of production volume increase, at 15.3% during this time, compared to 84.7% for all areas. if we examine the role that domestic textile producers play in the structure of global production and consumption, they account for 0.013-0.038% of production volume and 0.03-0.05% of consumption. the general technological advancement of the regional economy and the expansion of the textile sector also contribute to the explanation of the aforementioned figures. similar circumstances can be seen in the technical and technological aspects of neighborhood small businesses. therefore, the problem of modernization of production equipment is urgent, and its scale and speed depends on the availability of scientific research and development for the textile industry, the production capacity and progress of new technology, the investment opportunities of enterprises, as well as the availability of highly qualified personnel. taking into account that the textile industry is a large employer, about 47.5% of people work in this sector in fergana region, which is 5.9% of the personnel potential of the sector, the second raised issue requires relevance only in the sector. it should be noted that the goods produced by the region's textile and apparel industry currently have a place and a position on the markets of the republic and a few international nations. the high consumer quality of the textile and apparel produced in the fergana region, which are exhibited by their absence of poisonous or synthetic elements typical of imported goods, are another distinguishing attribute of these products. the following dangers were discovered during the research in the fergana region's textile and apparel sector firms' operations (figure 3) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 149 www.americanjournal.org figure 3. the main risks of the activity of textile and clothing industry enterprises of fergana region according to the study's findings, it is possible to quickly discuss the nature of the dangers shown in figure 3. first off, because of the low cost of imported goods, there is a possibility of increasing competition in the fergana region's internal market. the entry of new competitive producers with significant production capacities into the market, offering inexpensive products of low consumer quality, may be caused by the globalization of the international trade system and the country's entry into the region of so-called free trade zones with powerful countries producing textile materials. based on the conducted studies, a list of measures to minimize such risks can be formed (table 1). table 1 methods of minimizing risks in the textile and clothing industry of fergana region № the name of the danger techniques for reducing the risk 1. risk of increased competition in the domestic market of fergana region due to cheap imported products increasing the competitiveness of the enterprise due to diversification of production. 2. risk of equipment failure looking for investors to expand and modernize the enterprise's production capacity, creating additional production capacity aimed at providing the enterprise with its own raw materials. 3. the occurrence of a loss-making financial result of the enterprise development of targeted programs aimed at the development of domestic sheep breeding as a promising branch of the economy, the general state concept of ensuring the safety of national commodity producers. 4. decrease in consumer market share (loss of consumers) expanding cooperation with suppliers of raw materials. to change methodological approaches to cost management in the enterprise in order to optimize the cost of products and reduce the price level in practice. 5. failures in the delivery of materials as a result of irresponsible performance of contractual obligations by suppliers to change the state approach to the directions of support of certain branches of production and types of entrepreneurship, to develop appropriate targeted programs. conclusions and suggestions in conclusion, the key stages of the qualitative analysis of the risks associated with boosting the productivity of the textile and apparel industry were established and justified as a result of the study the main risks of the activity of textile and clothing industry enterprises of fergana region risk of increased competition in the domestic market of ukraine due to cheap imported products failures in the delivery of materials as a result of unscrupulous fulfillment of contractual obligations by suppliers risk of equipment failure the occurrence of an undesirable commercial financial consequence reduction in consumer market share american journal of business management, economics and banking volume 11 april, 2023 p a g e | 150 www.americanjournal.org that was done. additionally, their brief explanations and particular aspects of carrying out qualitative risk analysis were described. the suggested methodology was applied to the textile and apparel sector's operations in the fergana region, where the main business risks in particular, the risks of heightened competition, equipment failure, decreased profitability, and clientele loss were identified. the risks according to investigation underwent a thorough diagnostic, during which the primary causes and effects of the implementation of the risks were identified. additionally, the risk of occurrence as a result of the influence of the primary internal and external factors affecting likelihood was identified. a thorough organizational approach to enterprise management is necessary to implement the wide range of technical and technological, intellectual people, marketing, and communication strategies included in the suggested techniques for reducing the impact of the identified risks. references 1. морев к.с. оценка рисков финансово-хозяйственной деятельности предприятия. проблемы управления рыночной экономикой: межрегиональный сборник научных трудов. 2015. с. 34– 37. 2. габуниа н.г., корелин к.в. экономическая безопасность предприятия и управление рисками. известия санктпетербургского государственного экономического университета. 2015. № 4. с. 79–81. 3. shtebner s.v., chubrina k.a., lebedev i.a. factors of economic development of enterprise textile industry. technology tekstilnoy promyshlennosti. 2018. no. 5. s. 51–54. 4. н.к.баҳодиров. тўқимачилик саноати корхоналарининг ишлаб чиқариш самарадорлигига таъсир қилувчи омиллар таҳлили. иқтисодиёт ва таълим журнали, 2022 йил 6-сон, 378-383 бетлар 5. n.k.bakhadirov. the importance of organizing textile industry enterprises on the basis of a digital platform. world economics & finance bulletin (wefb), 145-148 bet. 6. н.к.баҳодиров. тўқимачилик саноати корхоналарининг иқтисодий самарадорлигини оширишда юзага келиши мумкин бўлган хатарларни аниқлаш ва таҳлил қилишнинг ахамияти. “yangi o‘zbekiston iqtisodiyotini rivojlantirishning dolzarb masalalari” respublika miqiyosidagi ilmiy-amaliy konferensiya materiallar 2-to‘plami, namangan muhandislik qurilish instituti, 2022 yil 29-30 sentabr, 168-169 betlar. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 27 www.americanjournal.org analysis of requirements for children's clothes r. a. ergasheva namangan of engineering and technology institute senior teachers of the department of design and technology of light industry products d. h. rayimberdiyeva, namangan of engineering and technology institute senior teachers of the department of design and technology of light industry products khalilov kamoliddin muhammadmuso ugli 15au-20 group student a b s t r a c t k e y w o r d s in the article, marketing research was conducted in local markets of namangan region and district for the production of a set of girls' clothes, and consumer demand was studied. based on the results of the research, it was analyzed that there is a high demand for national adras fabric models sewn for children's clothes with simplicity, various kant, core stitches, zippers. ergonomic, aesthetic, hygroscopicity, hygienic, mechanical properties, design, technological, adhesive seam. the development of the country is largely due to the increase in industrial production and the creation of new models, improving their quality, organizing the production of modern garments that will please not only the population of the republic, but also foreigners, and modernization of technological processes of light industry. is one of the main tasks ahead. light industry is one of the fastest growing sectors of this is due to the fact that during the period of independence, due to the special attention paid to the development of the industry, the inflow of investments has increased, and many modern enterprises have been established. in particular, barkas-teks group is a group of companies that are rapidly developing in the republic of uzbekistan, specializing in a variety of down products: towels and down fabrics. at present, the production of quality and competitive products is also directly dependent on the equipment. in order to produce high quality and competitive products, the company constantly uses modern equipment manufactured by leading textile machine builders. workers in the light industry must radically improve their work through the restructuring of enterprises, the development of equipment, modern projects, complex mechanization and automation. in the design of young children's garments, the basic principle of configuration is determined by the general requirements for clothing. requirements for clothing and its main features are determined by american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 28 www.americanjournal.org the type of product (raspashonka, polzunka, wrap, overalls, etc.), and its purpose (chilla period, 3 months, up to 1 year, kindergarten age, school age, and adolescence, depending on the season (winter and summer, autumn and spring). children's clothing constantly interacts with its surface. when a person wears a garment, he feels warmth, coolness, coolness, comfort, and so on. feelings like in such cases, clothing not only protects the person from the effects of the climate, but also creates an artificial microclimate around the body. the main features of this microclimate are temperature, relative humidity and the presence of carbonic acid (normal respiration of the skin). these features mainly reflect the natural and hygienic requirements for clothing. in our country, the issues of design industry market position, increasing production efficiency, solving problems related to production, increasing product competitiveness are among the most pressing issues today. it is necessary for enterprises to achieve production goals, efficient use of production resources means of production and labor force to produce new goods. but at all stages of development, the constant and main problem of the economy has been the infinite needs and limited economic resources. it is a very responsible task for people to live in such conditions, to produce the means of subsistence necessary for their development and to deliver them to consumers. when conducting marketing research in the local markets of namangan region and district in 20202021, we saw a high level of demand for national adras fabric models sewn with simplicity, various cantens, core stitches, zippers in children's clothes. marketing research is conducted using questionnaires, surveys, questionnaires and various other methods. one of the best quick methods is the survey method, in which we conducted a survey, first among sellers, and then among buyers. in this way, the demand and supply of goods in our local markets were studied. the use of marketing research methods in production is intended to precede the business plans of the enterprise, as it is a way to know in advance what consumers need. after the research, the market turnover of goods is good, which ensures the continuity and periodicity of production. constructive-decorative analysis of children's clothing table 1 constructive decorative solution technical picture siluyet american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 29 www.americanjournal.org sleeve type shaping the neck the type of skirt to assess the quality of clothing, it is divided into consumer quality indicators and technical and economic indicators. consumption indicators are the properties of a product that are designed to meet certain requirements in the process of human consumption. consumption indicators include social, functional, aesthetic, ergonomic, and operational indicators. ergonomic requirements include factors that create a comfortable environment for a person during the period of operation of the product, without compromising it. aesthetic requirements include the artistic integrity, perfection and modernity of the design of the model, as well as its affordability. clothing that has no aesthetic properties becomes a useless item because it cannot fulfill its intended function a specific feature that satisfies a person's aesthetic needs. in the functional requirement, the model must be designed for a specific task and fit the group of anthropometric dimensions of the consumer. the function of the same product can shape the requirements for the model, its construction and materials. operational requirement the ability to maintain the product for a long period of time. in this case, the model must meet the requirements of its shape, strength of the material, resistance to breakage of the joints. technical and economic indicators indicate the level of technical perfection of the design, the design and technological methods of clothing, taking into account the consumer costs of production. technical and economic indicators include standardization and unification, the degree of ease of construction and economy. when designing children's clothing, it is necessary to take into account its technological convenience, as well as operational performance, which ensures the durability of stitches and ease of processing. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 30 www.americanjournal.org standardization and unification of the design include the closeness of the model series in terms of ease of processing, the structural closeness of the model series. the ease of operation of the structure includes the indicators of ease of operation in terms of operation, ease of operation in the production process. savings include the cost of a product and the cost of operating the product. today, children's clothing requires: -convenience -ensure dynamic mobility -moist, non-staining aesthetic appearance when washing and wearing clothes, it is necessary to choose fabrics with a low degree of elasticity. in conclusion, children's clothing must fully meet the above social, functional, aesthetic, ergonomic, and operational requirements. because children need active, brightly colored and decorated clothes. therefore, special attention should be paid to hygienic and aesthetic requirements. references 1. mirziyoev sh.m. “buyuk kelajagimizni mard va olijanob xalqimiz bilan birga quramiz ” toshkent: “o`zbekiston” 2017 yil 2. 2. n.s. gaipova, m.a. g`afurova, q.m. abdullayeva. tikuv buyumlarini loyihalash, modellash, badiiy bezash. 3. 3. abdullyeva. q.m. tikuvchilik buyumlarini loyihalash va modellashtirish asoslari. toshkent. yozuvchilar uyushmasi 2006-yil. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 98 www.americanjournal.org comparative analysis of the use of confiscation and requisition institutions in criminal proceedings khudaybergenov baxram kuanishbaevich acting associate professor at the department "criminal-procedural law" of tsul, phd in law orcid: 1d 0000-0002-0173-5442 e-mail: bax555@umail.uz a b s t r a c t k e y w o r d s this article discusses the current problems of criminal procedure law concerning the issue of confiscation and requisition. the seizure of property as a forced reaction of the state to the actions of participants in legal relations is regulated by the norms of various branches of law, such as criminal, civil, administrative and land. the variety of regulatory norms indicates the need for an intersectoral study of compliance with the concepts used in regulatory legal acts and the grounds for the use of confiscation and requisition. criminal procedure, civil law, confiscation of property, requisition, legal instruments, intersectoral regulation, current problems of criminal procedure, blank norms, seizure of property, compensation for harm. introduction today, the national criminal procedure legislation is undergoing large-scale reforms, which is due to socio-political changes in the country. the decree of the president of the republic of uzbekistan "on the development strategy of the new uzbekistan for 2022-2026" identifies "turning the principles of justice and the rule of law into a fundamental and necessary condition for the development of the country"as one of the main goals of further development. attention is drawn to the issuesof strengthening the guarantees of inviolability and protection of private property, strict provision of property rights, including rights to a land plot [1]. in this aspect, attention is drawn to the issues of forced seizure of property, which has such forms, as" confiscation "and" requisition". in turn, thelegislation of the republic of uzbekistan guarantees the inviolabilityof privateproperty, with the exception ofindividual cases. thus, in the civil code, confiscation and requisition are considered as grounds for termination of the right of private property (articles 203, 204 of the civil code). requisition refers to the seizure of property from the owner by decision of state bodies with payment of the value of the property in the event of natural disasters, accidents, epidemics, epizootics and other circumstances of an extraordinary nature exclusively in the public interest (article 203 of the civil code). additionally, it is indicated that upon termination of the circumstances in connection with which the requisition was made, the former owner of the requisitioned property has the right to demand the return of the preserved property to him. article статье27 of the administrative liability code of the republic of uzbekistan also provides for the possibility of administrative confiscation of property. in american journal of business management, economics and banking volume 15 august, 2023 p a g e | 99 www.americanjournal.org the code of criminal procedure, requisition and confiscation presuppose the seizure by a court decision of property that is material evidence in a criminal case for a fee or free of charge (article 289 of the code of criminal procedure). itis noteworthy that the seizure of property is a unifying feature of requisition and confiscation as legal institutions. however, the legal consequences of requisition and confiscation are different.upon confiscation of property, the right of ownership is terminated, and upon requisition, the termination has the effect of compensating the loss to the owner. the grounds for termination of rights to land plots are also regulated by article 36of the land code of the republic of uzbekistan, which specifies the difference between requisition and confiscation. thus, the right of ownership to land plots is terminated in accordance with the established procedure in the following cases:: purchase of commercial and service objects, as well as residential premises and other buildings or parts of buildings together with the land plots on which they are located, for public needs and confiscation of commercial and service objects, as well as residential premises and other buildings or parts of buildings together with the land plots on which they are located, in cases of: established by law. we believe that such a revision of the norms is more accurate in protecting both public interests and the rights of private owners.как общественных интересов, тit is noteworthy that theconcept of requisition is given differently than in civil legislation. the difference lies in the fact thatеквизиции подлежит property a land plot-is subject to requisition also in cases of natural disasters, accidents, epidemics, epizootics and other circumstances of an extraordinary nature, i.e. civil legislation provides more detailed explanations of the grounds for property requisition. based on the above, it can be concluded that requisition is an administrative measure used to address such urgent issues of public life as threats of a man-made or natural nature. in the legal literature, the opinion is expressed that "confiscation to a large extent does not imply the termination of the convicted person's property right to the seized property, although it should realize the main purpose of applying other measures of a criminal-legal nature" [2]. others also support the position that "it is impossible to terminate ownership of property that is in the illegal possession of a person. such seizure of property is of a public-legal nature, has no relation either to the civil-legal grounds for the termination of property rights, or to the intersectoral institution of confiscation", while putting forward the need to use a separate term, such as" taking away " [3]. the term "appeal to state revenue" is also used classically [4]. we believe that the correct definition of the institution used affects its legal definition. since confiscation is cross-sectoral, its objectives, types and scope should be clearly defined. special attention should be paid to the application of these institutions in criminal proceedings. as noted earlier, requisition and confiscation are reflected in article 289 of the code of criminal procedure. however, as a legal institution, itis not included in the criminal legislation. it is well known that "confiscation" as a measure наказания функof punishment functioned in the criminal legislation of uzbekistan in the period from 1995 to 2001 and had its wide application [5]. but despite the lack of legislative consolidation in the form of sanctions, punishments and other measures of criminal legal influence, this institution has its own practice of application in the framework of criminal proceedings. the experience of neighboring countries indicates the existence and functioning of only the institution of confiscation in both criminal and criminal procedure law. chapter 15.1of the criminal code of the russian federation defines confiscation as other measures of criminal influence, while establishing that "confiscation is the forced gratuitous seizure and conversion into state ownership on the basis of a guilty american journal of business management, economics and banking volume 15 august, 2023 p a g e | 100 www.americanjournal.org verdict of money, valuables and other property obtained as a result of the commission of crimes or for their commission, tools, equipment of crimes" [6]. the code of criminal procedure of the russian federation additionally establishes that confiscation is a legal instrument for compensation for damage caused by a crime, which also serves to recover assets from the territory of a foreign state (article 160.1 of the code of criminal procedure of the russian federation) [7]. the criminal and criminal procedure laws of the republic of kazakhstan (article 48 of the criminal code and article 325 of the criminal procedure code) adhere to the same approach [8]. in the code of criminal procedure of the republic of azerbaijan, confiscation is singled out as a legal instrument for compensation for damage caused (article 58 of the code of criminal procedure), i.e. property is seized during a pre-trial investigation and subsequently the issue is resolved on the basis of a court decision. the criminal law of azerbaijan distinguishes two types of confiscation of property, as general and special [9]. general confiscation means an additional penalty for the crime committed. special confiscation in the form of a criminal measure consists in the compulsory and gratuitous seizure in favor of the state of the following property: tools and means used by the convicted person in the commission of a crime (with the exception of tools and means that are subject to return to the rightful owner); monetary funds or other property obtained by the convicted person in a criminal way, as well as income received at the expense of these monetary funds or other property (with the exception of monetary funds or other property and income received from them, which are subject to return to the rightful owner); other property or its corresponding part, into which funds or other property obtained by criminal means have been fully or partially transformed by entering into civil transactions or by other means; property provided for or used to finance terrorism, armed formations or groups, organized groups or criminal associations (criminal organizations) that are not provided for by the legislation. the code of criminal procedure of georgia regulates the issueof property withdrawal in a different way. thus , in the event of damage, loss or destruction of physical evidence, its owner or owner receives monetary compensation. this procedure does not apply to property subject to procedural confiscation, destruction and appeal for compensation of procedural expenses [10]. at thesame time, confiscation has an independent procedure in comparison with the seizure of property. arrest is considered as a temporary restriction of the rights to use and dispose of property (i.e.жfreezing of assets, prohibition on the sale of real estate, etc.). the issue of confiscation of property is resolved only on the basis of a court verdict. thus, physical evidencea in a criminal case is subject to confiscation. in case of loss of the seized property, the issue of mandatory compensation for the damage caused to the rightful owner or owner is resolved. analyzing the practice and legislation of foreign countries, we can note the logical sequence and interrelation of regulatory norms governing the issues of forced seizure of property in criminal proceedings. as such, we did not notice the institution of requisition in the criminal and criminal procedure legislation of the countries studied. despite the fact that national legislation mentions requisition inthe code of criminal procedure, an analysis of the materials of judicial and investigative activities indicates that itis not mentioned, and therefore we consider it appropriate to exclude it from the system of norms of criminal procedure legislation. the analysis of the norms of the code of criminal procedure shows that along with the concept of confiscation and requisition, the legislator also uses the term "seizure". so, in article 294 of the code american journal of business management, economics and banking volume 15 august, 2023 p a g e | 101 www.americanjournal.org of criminal procedure, it indicates the possibility of seizing property that has been seized. having bound these notes, itрis necessary to establish the procedure under which objects and property should be seized by order of the inquirer, investigator, prosecutor or by court order with the seizure of them before their confiscation. at the same time, it cannot be excluded that theconcept can simultaneously be associated with both requisition and confiscation, and also often acts as an independent concept. given the importanceость of the analyzed categories, such a provision of law enforcement cannot be considered acceptable. it is necessary to establish a single, well-defined understanding of the full content of the main types of forced seizure of property from owners. a comparative analysis of the current legislation and regulations of neighboring countries shows a clear superiority in the quality of the normative content of the latter. based on the results of the analysis of the institute of forced seizure of property, it is proposed that confiscation should be understood as the forced termination of property rights based on a court decision in a criminal case. confiscation should be divided into general and special forms. the general form of confiscation should be understood as another measure of a criminal nature, the purpose of which is to compensate for damage caused by a crime. a special form of confiscation should be understood as "seizure of property that should be turned into state revenue" (tools and objects of crime, money or other property obtained by a convicted criminal, property provided for or used to finance terrorism, armed formations or groups, organized groups or criminal associations that are not provided for by law). due to the fact that requisition can be implemented only in the form of compulsory-paid seizure of property, this issue cannot be settled only by analogy of civil law. in this следует применяcase, a special settlement procedure should be applied, since only material evidence in criminal cases is subject to requisition. for example, citizen b. purchaseda cobalt carfrom citizens. for a certain amount on the basis of a purchase and sale agreement. after some time, the car of citizen b. is seized due to the fact that a criminal case has been opened against citizen s. under paragraph "a" of part 2 of article 168 of the criminal code. during the investigation, it is established that citizen s. illegally sold a car purchased on credit through a bank. in this case, the car will be seized as physical evidence with the imposition of arrest. in another case,the restriction may be related to the purchase of housing on the primary market without the relevant cadastral documents, which is being investigated under paragraph " a " of part 4 of article 168 of the criminal code. we believe thatакие these examplesmeetthe requirements of article 289 of the code of criminal procedure. in such situations, requisition may also be temporary or permanent. this distinction makes it possible toidentify differences in the implementation of these forms of confiscation and requisition. it is also possible to achieve the solution of these problems by adopting a comprehensive regulatory act on the requisition and confiscation of property. the existence of a special law would allow us to solve many problems of a theoretical and practical nature. references 1. decree of the president of the republic of uzbekistan no. up-60 dated 28.01.2022. https://lex.uz/ru/docs/5841077#5843136://lex.uz/ru/docs/5841077#5843136 2. kuznetsova o. a., stepanov v. v. mezhotraslevaya pravovaya priroda confiscatsii imestva [intersectoral legal nature of property confiscation]. – 2018. – №. 2 (254). – pp. 27-37. https://lex.uz/ru/docs/5841077#5843136 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 102 www.americanjournal.org 3. kuznetsova olga anatolyevna, stepanov vitaly vitalievich mezhotraslevaya pravovaya priroda confiscatsii imestva [intersectoral legal nature of property confiscation]. 2018. №2 (254). 4. kondrat i. n. restrictions on political, socio-economic and cultural rights and freedoms in criminal proceedings: permissibility and limits //the world of politics and sociology. 2012, no. 9, pp. 58-70. 5. https://lex.uz/acts/111457?ondate=01.04.1995%2000 6. "criminal code of the russian federation" no. 63-fz of 13.06.1996 (as amended on 04.08.2023) 7. "criminal procedure code of the russian federation" no. 174-fz of 18.12.2001 (as amended on 04.08.2023) (with amendments and additions, intro. effective from 11.08.2023) 8. https://online.zakon.kz/document/?doc_id=31575252&doc_id2=31575252#activate_doc=2&pos =5;-100.19999694824219&pos2=5;-100.19999694824219; https://online.zakon.kz/document/?doc_id=31575852&pos=385;-49#pos=385;-49 9. https://www.migration.gov.az/content/pdf/7d878287d2a6aa187238b93c7df26ef3.pdf 10. https://matsne.gov.ge/ru/document/view/90034?publication=157 https://lex.uz/acts/111457?ondate=01.04.1995%2000 https://www.consultant.ru/document/cons_doc_law_10699/ https://www.consultant.ru/document/cons_doc_law_34481/ https://www.consultant.ru/document/cons_doc_law_34481/ https://online.zakon.kz/document/?doc_id=31575252&doc_id2=31575252#activate_doc=2&pos=5;-100.19999694824219&pos2=5;-100.19999694824219 https://online.zakon.kz/document/?doc_id=31575252&doc_id2=31575252#activate_doc=2&pos=5;-100.19999694824219&pos2=5;-100.19999694824219 https://online.zakon.kz/document/?doc_id=31575852&pos=385;-49#pos=385;-49 https://www.migration.gov.az/content/pdf/7d878287d2a6aa187238b93c7df26ef3.pdf https://matsne.gov.ge/ru/document/view/90034?publication=157 american journal of business management, economics and banking issn (e): 2832-8078 volume 1, | june 2022 p a g e | 23 www.americanjournal.org ethics in human resource management: a conceptual and theoretical analysisa olanipekun, lateef okikiola1, jayeoba, foluso ilesanmi phd2 1 department of industrial relations and human resource management, lagos state university, ojo, lagos, nigeria 2 department of industrial relations and human resource management, lagos state university, ojo, lagos, nigeria. 1 email: olanipekunokikiolalateef@gmail.com 2 email: foluso.jayeoba@lasu.edu.ng a b s t r a c t k e y w o r d s most debates centered on hrm ethics have mainly concentrated on social and ecological responsibility of organisations; also, in recent years ethics has increasingly become an internal concern for organisations. in the past years, management has ignored employees’ interests as they prioritised the interests of shareholders. human resource has become a very important resource to many organizations. this calls for the need to ensure justice and fairness in the manner in which this resource is handled. employers in a typical organisation are in an increasingly advantaged position, whereby they dominate and govern the relationship between their employees and themselves. this shows the need for evaluating the role of the management in promoting morality and ethical procedures in dealing with employees, hence, this paper. introduction business ethics are the moral doctrines that direct the way to business behave. business ethics determines the actions of every individual that distinguish the right or wrong (business case studies, 2018). every business organisation must develop the codes of conduct and ethics that should be followed by all the members. ethics can be taken as the crucial way to self-presentation and public perception of the organisation. ethics in human resource management is related to the employee’s issues. human resource management plays an important role in setting up and implementing ethics in the workplace. implementation of ethics in the workplace has been one of the challenging tasks for the organisation. various human resources issues can be handled properly by the application of ethics and code of practices by the managers in the workplace. ethics generally determine what is right and what is wrong. with the help of business ethics, proper allocation and maintenance of employee in the workplace will be possible. human resource management deals mainly with manpower planning and development related activities in any mailto:olanipekunokikiolalateef@gmail.com american journal of business management, economics and banking volume 1, june, 2022 p a g e | 24 www.americanjournal.org organisation. it is these branches where ethics really matter, since it concerns issues like compensation, development, industrial relations, etc. as some authors stated in recent publications, ethics has become more of an internal concern of organisations. whereas formerly the interests of employees were ignored or only regarded as one of several stakeholders’ interests, the “ethical management of employees” (winstanley and woodall 2020) itself gains in significance. johns (2015) stated that “the time for ethical leadership has come.” especially human resource management (hrm) plays a decisive role in introducing and implementing ethics. the essay outlines key issues of ethics in hrm. here, the focus is mainly on key issues to introducing ethical standards in hrm activities. ethics defined ethics is a term. many people think ethics has to do with a set of social conventions or a religious decree. in professional philosophy we do not typically consider this to be the definition of ethics. philosophical ethics could be called the study of what is good and bad. generally, philosophical ethics concerns itself with discovering a system one may use to determine who or what is good, or with evaluating systems that others have proposed. concept of hrm ethics the ethics of human resource management (hrm) covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee. hrm ethics is “the affirmative moral obligations of the employer (business) towards the employees to maintain equality and equity justice”. do not treat people (employees) simply as a means for our own purposes without their full and free consent, because they are ends in themselves. to what extent should the organisation follow hrm ethics? here, the two ethical concerns are to what extent should people be used as a means to an end; and to what extent the management has to act in the interest of the employees the last part of the definition of hrm “effective and efficient” utilization of hr supports the first concern the part “to achieve personal/individual goals” in the definition supports the second concern the definition of hrm clearly says that organisational interest cannot be compromised while doing justice to employees and vice-versa. areas of hrm ethics basic human rights, civil and employment rights. e.g. job security, feedback from tests, openness and consultation over matters which affect the employees social and organisational justice. e.g. procedural justice, egalitarianism, equity and equal opportunity equity/distributive justice (proportionate pay for proportionate contribution), autonomy and respect safety in the workplace respect, fairness and honesty based process in the workplace privacy american journal of business management, economics and banking volume 1, june, 2022 p a g e | 25 www.americanjournal.org ethical issues in hrm ethical issues abound in hr activities. areas of ethical misconduct in the personnel function include employment remuneration and benefits, labor relations, health and safety, training and development, and hris (hr ethical issues). fig i: conceptual analysis of ethical issues in human resource management source: authors construct, (2022) cash and incentives plans: this includes base salaries, annual incentive plans, long term incentive plans, executive perquisites, and separation agreements. base salariesthe hr function is often presumed to justify a higher level of base salaries, or a higher percentage increase than what competitive practice calls for. in some cases, pressure is exerted to reevaluate the position to a higher grade for the purpose of justifying a larger than normal increase. annual incentive planthe hr manager is often forced to design and administer top-management incentive plans, at higher rates than what the individuals deserve. a common rationale presented to the hr executive for bending the rules is the fear of losing the outstanding executives, if higher incentives are not paid. long-term incentive planjust as with annual incentive plan, many hr executives have the responsibility of designing and administering the firm’s long term incentive plans, but in consultation with ceo and an external consultant. ethical issues arise when the hr executive is put to pressure to favor top management interests over those of other employees an investors executive perquisitesexecutive perquisites make the ethical standard of the hr executive difficult because their cost is often out of proportion to the value added. for example a story relates to lagos based losing making public sector undertaking whose ceo spend 20 million naira to get swimming pool built at his residence. performance appraisal performance appraisal lends itself to ethical issues. assessment of an individual’s performance is based on observation and judgment. hr manager are expected to observe the performance in order to judge its effectiveness. ethics should be the cornerstone of performance evaluation, and the overall objective of high ethical performance reviews should to provide an honest assessment of the performance and mutually develops a plan to improve the ratee’s effectiveness. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 26 www.americanjournal.org race, gender, age, and disability: the practice of treatment of employees according to their race, ethnic origin, sex, or disability has largely been stopped. a framework of laws and regulations has evolved that has significantly improved work place behavior. no enterprise today dare to publicly state it denies minorities, woman, and the disable opportunities for employment, remuneration, and growth prospects different from those given to others. in this environment the role of hr function is to: monitor the principles and norms of the enterprise to ensure that they reflect the values of the society as expressed in its law. monitor the selection, rewards, development and, the appraisal system to ensure that they are consistent with the principles and norms. vigorously pursue violations and, when necessary, vigorously work to defend the enterprise against unfounded allegations. employment issues while discrimination and harassment situation receives mort publicity, hr practitioners are more likely to face ethical dilemmas in the areas of employee hiring. one challenge commonly encountered is pressure to hire a relative or a friend of a highly placed executive. another area related to employment is that of faked credentials submitted by a job applicant. while discovery of this kind of fabrication usually leads to termination of the employment, the choice becomes difficult when the applicant has a blend of skills set and a proven track record with his or her previous employers. privacy issues privacy issues to protecting a person’s private life from intrusive and unwarranted actions. the employee believes that his or her religious, political, and social believes as well as personal life style are private matters and should be safe guarded from being snooped or analysed. exceptions are permitted grudgingly only when job involvement is clearly involved. for example, it may not be inappropriate to intrude into an employee’s private matter if it is suspected that he or she discusses with competitor, through email messages, the specification of newly developed product not yet launched into the market. safety and health much of the industrial work is hazardous. this is because of the extensive use of high speed and noisy machinery, production processes requiring high temperature, an increasing reliance on chemical compounds .accidents, injuries and illnesses are likely to occur under these circumstances. over past decade, new categories of accident and illness have emerged, including the fast growing job safety problem of office injuries. restructuring and layoffs: restructuring and consequent layoffs have become relevant because of poor management, but incompetence does not become unethical. there are ethical implications in the process by which termination decisions are made and actions taken. for example if restructuring requires closing a plant , the process by which that plant is chosen ,how the news will be communicated ,and the time frame for completing the layoffs are ethically important .if conducted in an atmosphere of fairness and equity and with dignity of the affected individuals in mind, the action is ethical. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 27 www.americanjournal.org ethics in the functions of hrm human resource department stands as the central entity that should lead in inculcating ethical principles in an organization. for an organization to adhere to ethical standards it depends more on cooperation of its employees. these include meeting the public expectations on ethics and adhering to ethical regulations set by the government and other private bodies. however, this practice must begin by handling employees ethically and introducing the ethical principles at the time of recruitment and all through the period the employee will be engaged to the organization. therefore, ethics should be part of the hrm functions (köster, 2007). ethics in recruitment a company should act ethically while advertising for job opportunities in the organization. they should ensure that the advertisement contains true information about the job rather than unrealistic information meant to attract the targeted applicant. the management should also ensure that they actually follow the due process in recruitment. for instance, the company should not use vacancy advertisements as a mere pr process, while recruiting employees through other unacceptable means. a case in point is when the management advertises vacancy for the public to apply, yet they have already picked on a candidate to fill the position (köster, 2007). ethics in selection and orientation during selection the hr panel needs to examine and discuss the values of prospective employees and use the findings of that process to make selection decisions. during orientation the company should emphasize the values that are upheld by the organization so that the employee can carry on with those values if selected. the staff at the human resource department should always show the importance of ethics in the organization. the potential employee is likely to come in to contact first with employees in this department before anyone else. this means that the new member will form his/her perception about the organization through their interaction. for instance, the employee’s expectation of ethical behavior will be influenced by the fairness in the selection process (saiyadain, 2009). there are measures that the hr department can put in place to ensure that the selection process is fair and ethical. first, the managers should purpose to use selection tests that are in line with the organization’s purpose. the criteria for selection should be clearly set out. this includes making the process known to everyone who is involved in the process. the management should ensure that those in the panel are trained and well equipped for the task. for instance, they should know to ask relevant questions and to draw conclusions from the respondents’ answers. the hrm department therefore, has a responsibility to ensure that the employees hired in the organization are able and willing to uphold ethical practices. when hrm hires ethical employees, chances are high that such employees will be consistent in ethical behavior when faced with ethical dilemmas at the work place (saiyadain, 2009). ethics in employee training many organizations are increasingly finding it important to include ethics training as part of employee training. they have found that ethics training can be an effective component in dealing with unethical behavior within the organization. therefore, the organization needs to develop an in-house training on ethics that covers two main aspects of ethics. ethical awareness which deals with increasing american journal of business management, economics and banking volume 1, june, 2022 p a g e | 28 www.americanjournal.org employee’s sensitivity to ethical dilemmas and ethical reasoning which educates the employees on strategies to be used in dealing with ethical dilemmas. ethical training can also be helpful to new employees whereby training programs can be developed that provide them with information on the available resources and designated personnel who can provide them with ethical and legal advice in the organization (ferrell, fraedrich & ferrell, 2009). to ensure that the ethics training is effective, the management needs to put some measures in place. these include setting up a code of ethics for the organization, outlining the process for airing out ethical concerns and ensuring that all staff is involved in the development of the code of ethics. in addition, the management should communicate to the employees the organization’s priorities on ethical issues. furthermore, the training should take in to consideration the characteristics of the organization, such as size, employee base, culture and management style (sims, 1994). ethics in employee reward systems the hr department can develop reward systems that promote ethical behavior within the organization. this can be in form of monetary compensation, employee benefits or even special employee recognition. such measures can be helpful in reinforcing individual and group values as well as maintaining enthusiasm in adhering to ethical values of the organization. however, the hrm department should be very keen when selecting a particular reward scheme. this is because some of them produce negative results from employees. for instance, some tempt employees to do the prohibited things and some instill fear by emphasizing on punishment in case of the employee defaults (sims, 1994). some reward systems promote contradictory norms which the employee in a dilemma. this is whereby, the organization advocate for a certain conduct, while it rewards the other. the management advocates for teamwork; however, when rewarding it seeks for the outstanding employee in the team. the employees will therefore be tempted to compete against each other in the team. another example is when the management advocates for good customer service among the salespeople, but pays them based on sales made. this will lead the employees to push for sales on customer without considering how they handle them. therefore, the hrm should know that reward and appraisal systems can be harnessed to promote ethical behavior in the organization. however, they should remember that the same can also promote unethical behavior (spencer & sims, 1995) ethical dilemmas in human resource management several ethical dilemmas comfort an hr manager. the ethical dilemmas arise from three sourcesfaces to face ethics, policy ethics, and functional area ethics. face to face ethics: these arise mainly because there is a human element in most business transactions. business is composed of this human transaction; it should not be surprising that face to face ethical dilemmas arise often. it is likely that the quality assurance man overlooks minor defects and approves a lot delivered by a supplier because of the personal relationship that the two enjoy. corporate policy ethics: companies are often faced with ethical dilemmas that affect their operations across all departments and divisions. the consequences of employment contraction in labour intensive basic industries because of the improved methods of production .modern technology has replaced older methods of production which has in turn resulted in hundreds being jobless. the ethical burden american journal of business management, economics and banking volume 1, june, 2022 p a g e | 29 www.americanjournal.org of deciding corporate policy matters normally rests upon a company’s hr management. the hr manager and directors are responsible for making policies and implementing them too. the ethical content of their policies can have enormous impact throughout the company. it can set an ethical tone and send right signals to all employees as well as external stakeholder. functional area ethics: functional area of a business is likely to comfort ethical issues. accounting is a critical function of any business. accounting statements reveals to the manager and owner the financial soundness of a company. managers, investors, regulating agencies, tax collectors and trade unions rely on accounting data to make decisions. honesty, integrity accuracy are absolute requirements of the accounting functions. account standard ensure a high level of honest an ethical accounting disclosure. ethical dilemmas crop up in purchasing departments where strong pressure is to obtain the lowest possible prizes from suppliers and where too felt similar need it bag lucrative contracts. bribes, kickbacks, and discriminating pricing are temptation to both parties. methods for achieving ethical hr standards there are different ways by which such ethical standards can be achieved within the organisation. at recent times interactive training methods that allow participants to approach ethical issues actively through case analysis or solving dilemmas produce the most positive perceptions and attitudes towards the organisation. perceived organisational support for ethics contributes much more to favorable ethical outcomes than does any type of training method. exposure to multiple training methods over the course of a year has a significantly greater impact on favorable outcomes organisations that use online training programs as their ethics training efforts should consider adding regular discussions within the organisation itself. we have seen the importance of ethics in an organisation and therefore such ethics focus model should flow down from top level managers to all other levels in the organisation. from what we know that is happening globally to organisations, steps are taken to improve the ethical issues, so that their outcome physically and mentally is at a much higher rate. ethical models are constructed and implemented in various organisations around the world. we should understand that now survival fights amongst companies across the globe, and in order to have a very free flow and less negative outcome hr management should be of very high level. ethics is a full time responsibility. as for hr managers they should invest time to learn more about the principles of ethics. effective ethical policies in place are holistic approach to the business growth. the ethical concerns in human resource management human resource management plays a vital role in the organisation while dealing with workplace issues. as human resource management deals with the management of human resources in the workplace, the issues related with the human resource must be focused by the top level management. the major ethical issues that have to be deal by the human resource management are a concern with the privacy issues, cash and compensation plan, employment issues, safety issues, race and disability, performance appraisal and employee’s responsibility (johnston, 2018). each and every employee is important for the organisation to achieve the stated goal so the issues related with the manpower must be identified on time for the better performance (greenwood and american journal of business management, economics and banking volume 1, june, 2022 p a g e | 30 www.americanjournal.org freeman, 2011). in a workplace, there will be a good and bad work performance with the application of right ethical theory the human issues can be managed. for the effective outcomes, all the employees must be treated ethically. employment issues are the general issues faced by the organisation as an individual belongs to different background, culture, religion, and races. so, hiring an employee creates a dilemma for the hr managers. the presentation of fake documents during the time of hiring may cause a problem in the future so, ethical action is the most essential aspects that should be adopted by both parties. hr manager must provide an equal opportunity and treatment for the individual while hiring. another human resource management issue is related to privacy. all the employees in the organisation have their own personal life. the information may be related to religion, social beliefs and many more. an employee wants to maintain the privacy within the organisation so they want the direct and indirect protection from the company. so, without the permission of employee privacy should not be leaked. such an unethical act should not be conducted by the organisation. most of the time people are treated badly in the workplace in the name of race, gender, and disability. the ethics-based organisation should not focus on discrimination while the employees should be appreciated for their contribution to the organisation (de gama, mckenna, and peticca-harris, 2012). similarly, an employee should be compensated on the basis of their performance. a company must have an effective compensating plan for their employees. the general ethical issues involved while managing the human resource is related to the salaries, executive benefits, and compensation including the annual incentives, flexible working hours, holidays and many more. compensating the employee for their contribution is one of the ethics that can be adopted by the organisation. this action increases the morale of employees and increases performance. along with the other responsibilities safety of employees is also one of the burning issues of human resource management. employee’s safety in the workplace is the ethical as well as the human right that should be provided by the organisation. it is one of the sensitive factors that cannot be avoided by the organisation to their employees (janssens and steyaert, 2009). for the effective management of human resource in the workplace, ethics must be considered by the managers. effective implementation of the ethic helps in controlling the human resources in a right way. without the ethics in the workplace, there will not be the better performance rather it will decrease the morale of the employee and gradually increase the turnover in the organisation. thus, for the satisfaction of the employee within the organisation, the business ethics is essential to adopt by the company. ethical demand in the workplace is the concern of the human resource management in the present context (jack, greenwood, and schapper, 2012). ethics in the workplace provides employee’s right and well-being. since, the success or failure of the business totally depends upon the ethical behavior shown by the managers in the organisation. for the success of the organisation, management must adopt the consistence ethical behavior to all the employees in the workplace. the ethical behavior of managers in workplace changes the behavior of the employee such as a change in attitude, interest and get motivated to perform the activities. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 31 www.americanjournal.org ethical principles beneficence the principle of beneficence guides the decision maker to do what is right and good. this priority to “do good” makes an ethical perspective and possible solution to an ethical dilemma acceptable. this principle is also related to the principle of utility, which states that we should attempt to generate the largest ratio of good over evil possible in the world. this principle stipulates that ethical theories should strive to achieve the greatest amount of good because people benefit from the most good. this principle is mainly associated with the utilitarian ethical theory discussed later in this set of notes. least harm similar to beneficence, least harm deals with situations in which no choice appears beneficial. in such cases, decision makers seek to choose to do the least harm possible and to do harm to the fewest people. students might argue that people have a greater responsibility to “do no harm” than to take steps to benefit others. for example, a student has a larger responsibility to simply walk past a teacher in the hallway rather than to make derogatory remarks about that teacher as he/she walks past even though the student had failed that teacher’s class. respect for autonomy this principle states that decision making should focus on allowing people to be autonomous to be able to make decisions that apply to their lives. thus, people should have control over their lives as much as possible because they are the only people who completely understand their chosen type of lifestyle. ask students if they agree. are there limits to autonomy? each individual deserves respect because only he/she has had those exact life experiences and understands his emotions, motivations, and physical capabilities in such an intimate manner. in essence, this ethical principle is an extension of the ethical principle of beneficence because a person who is independent usually prefers to have control over his life experiences in order to obtain the lifestyle that he/she enjoys. justice the justice ethical principle states that decision makers should focus on actions that are fair to those involved. this means that ethical decisions should be consistent with the ethical theory unless extenuating circumstances that can be justified exist in the case. this also means that cases with extenuating circumstances must contain a significant and vital difference from similar cases that justify the inconsistent decision. ask students if they describe what extenuating circumstances might be. theoretical underpinning ethical theories are employed for decision making guidance and emphasises an aspects of an ethical dilemma important to them and leads them to the most ethically correct resolution according to the guidelines within the ethical theory itself. for this study, four broad categories of ethical theory were examined and these are deontology, utilitarianism, rights, and virtues. deontology theory the deontological class of ethical theories states that people should adhere to their obligations and duties when engaged in decision making when ethics are in play. this means that a person will follow american journal of business management, economics and banking volume 1, june, 2022 p a g e | 32 www.americanjournal.org his or her obligations to another individual or society because upholding one’s duty is what is considered ethically correct. for instance, a deontologist will always keep his promises to a friend and will follow the law. a person who adheres to deontological theory will produce very consistent decisions since they will be based on the individual’s set duties. deontology contains many positive attributes, but it also contains flaws. one flaw is that there is no rationale or logical basis for deciding an individual’s duties. for instance, a business person may decide that it is his/her duty to always be on time to meetings. although this appears to be something good, we do not know why the person chose to make this his duty. ask employees what reasons they might provide for certain behavior(s). sometimes, a person’s duties are in conflict. for instance, if the business person who must be on time to meetings is running late, how is he/she supposed to drive? is speeding breaking his/her duty to society to uphold the law, or is the businessperson supposed to arrive at the meeting late, not fulfilling the duty to be on time? ask employees how they would rectify the conflicting obligations to arrive at a clear ethically-correct resolution. also ask employees to bring into play the consideration of the welfare of others as a result of the business person’s decision. utilitarianism theory utilitarian ethical theories are based on one’s ability to predict the consequences of an action. to a utilitarian, the choice that yields the greatest benefit to the most people is the one that is ethically correct. there are two types of utilitarianism, act utilitarianism and rule utilitarianism. act utilitarianism subscribes precisely to the definition of utilitarianism that a person performs the acts that benefit the most people, regardless of personal feelings or the societal constraints such as laws. rule utilitarianism takes into account the law and is concerned with fairness. a rule utilitarian seeks to benefit the most people but through the fairest and most just means available. therefore, added benefits of rule utilitarianism are that it values justice and includes beneficence at the same time. both act and rule utilitarianism have disadvantages. although people can use their life experiences to attempt to predict outcomes, no one can be certain that his/her predictions will be accurate. uncertainty can lead to unexpected results making the utilitarian decision maker appear unethical as time passes, as the choice made did not benefit the most people as predicted. another assumption that a utilitarian decision maker must make concerns his/her ability to compare the various types of consequences against each other on a similar scale. but, comparing material gains, such as money, against intangible gains, such as happiness, is very difficult since their qualities differ to such a large extent. an act utilitarian decision maker is concerned with achieving the maximum good. thus, one individual’s rights may be infringed upon in order to benefit a greater number of people. in other words, act utilitarianism is not always concerned with justice, beneficence or autonomy for an individual if oppressing the individual leads to the solution that benefits a majority of people. rights theory in ethical theories based on rights, the rights established by a society are protected and given the highest priority. rights are considered to be ethically correct and valid since a large population endorses them. individuals may also bestow rights upon others if they have the ability and resources to do so. for example, a person may say that her friend may borrow her laptop for the afternoon. the friend who was given the ability to borrow the laptop now has a right to the laptop in the afternoon. a major american journal of business management, economics and banking volume 1, june, 2022 p a g e | 33 www.americanjournal.org complication of this theory on a larger scale is that one must decipher what the characteristics of a right are in a society. the society has to determine what rights it wants to uphold and give to its citizens. in order for a society to determine what rights it wants to enact, it must decide what the society’s goals and ethical priorities are. therefore, in order for the rights theory to be useful, it must be used in conjunction with another ethical theory that will consistently explain the goals of the society. for example in nigeria, people have the right to choose their religion and because this right is upheld in the constitution. one of the goals of the founding fathers’ of nigeria was to uphold this right to freedom of religion. virtue theory the virtue ethical theory judges a person by his/her character rather than by an action that may deviate from his/her normal behavior. it takes the person’s morals, reputation, and motivation into account when rating an unusual and irregular behavior that is considered unethical. for instance, if a person plagiarized a passage that was later detected by a peer, the peer who knows the person well will understand the person’s character and will judge the friend accordingly. if the plagiarizer normally follows the rules and has good standing amongst his colleagues, the peer who encounters the plagiarized passage may be able to judge his friend more leniently. perhaps the researcher had a late night and simply forgot to credit his or her source appropriately. conversely, a person who has a reputation for academic misconduct is more likely to be judged harshly for plagiarizing because of his/her consistent past of unethical behavior. one weakness of virtue ethical theory is that it does not take into consideration a person’s change in moral character. for example, a scientist who may have made mistakes in the past may honestly have the same late night story as the scientist in good standing. neither of these scientists intentionally plagiarized, but the act was still committed. on the other hand, a researcher may have a sudden change from moral to immoral character may go unnoticed until a significant amount of evidence mounts up against him/her. application of ethical theories in human resource management within the organisation, several human resource issues have to be faced by the human sources managers that are concerned with the ethics. an employee can give their best when the needs and demands are fulfilled as well as when they are treated ethically. employees in the workplace may belong to different background and culture. equal opportunity and treatment for the employees is the common issue that must be regularly monitored by the company. for the better performance and the better result, the managers must show the ethical behavior to the employees. the ethical issues related to human resources must be solved on time. the ethical behavior must be maintained within an organisation (frey & wellman, 2008). for instance, justin is the boss of the organisation where anna is the office manager. janet is the receptionist in that organisation. under the supervision of the anna, janet performs her activities and janet is a hardworking and good employee. janet is going through a rough time due to the divorce so to fulfill the financial requirement she used to perform in the theater which is not liked by her boss. the performance of janet in the organisation is appreciable but due to dislike, anna was asked to terminate janet from the work within the next 30 days by writing a negative appraisal. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 34 www.americanjournal.org anna is in a dilemma that whether she goes with the boss and terminate janet from job or fight for the janet (society for human resource management, 2010). the example of janet reflects the importance of ethics in the workplace. as janet is a good employee and her performance is better than others the boss should not behave unethical behavior with her. in such a situation, ethics play a vital role in providing justice for the right one. ethics in the workplace is very important to implement for building a fair workplace for all employees. the decision making in the organisation must be based on the theories related to the ethics. an appropriate decision can be taken with the help of various ethical theories. as solving the human issues within the organisation is a very challenging task with the help of ethics and codes of conduct the problem can be solved easily. the issues may be related to cash and compensation, safety, employee performance appraisal, race, gender and disability, and employee responsibility. these issues can be minimized by the application of ethical theories. in the case of janet that has been discussed above that she deserves the right to know the reason for her termination. the rights theory explains that every employee has the right to know about the problem. the problems must be informed to the employee so that he or she gets an opportunity to improve it. implement of utilitarian theory the best and least harm can be consummated (gustafson, 2013). due to the unethical activities or behavior of managers to the employees, it may cause the longterm harm to the organisation. so, punishing a non-guilty person is wrong which may lead to the legal problem in the future. the employee of an organisation must be provided an equal opportunity of employment without any discrimination. all the employees must provide with the fair and competitive work environment. the distributive justice theory is a concern with providing a fair action to all the member and employee of the organisation. according to the performance of the employees, the compensation along with other incentives and facilities must be distributed (phillips, freeman and wicks, 2003). the deserving candidates must be appreciated for their performance; such behavior of manager will improve the working environment and enhance the performance. with the implementation of caring theory in the workplace, managers can retain the employees in the organisation. implementation of this theory in the workplace helps to build the relationship between the employees. similarly, one should not be unjustified by providing negative appraisal so the virtue ethics should not be violated by providing a false statement about the employee (graham, 2004). both the employees and the managers should not show the unethical activities in the workplace. the issues related with the human resources must be sorted out on time. with the proper application of ethical theories, the appropriate decision can be made to improve the working condition and maintaining the justices in the organisation. the decision taken related to the employees of an organisation must be justified without any discrimination in the workplace. conclusion and recommendations ethical issues are burning issues in the field of human resource management. ethical issues may arise in every organisation such as employment issues, safety issues, performance appraisal, equal treatment and opportunity and many more. such issues lead to the situation of conflict in the workplace so for the maintenance of conflict ethical practice must be conducted in the organisation. an ethical behavior of managers helps to determine what is right and what is wrong. ethical practice and codes of conduct help to punish the guilty and appreciate the right one. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 35 www.americanjournal.org it is evident that the hrm can play an important role in promoting ethical behavior in the organization. the human resource department can achieve this by initiating programs that promote ethical culture in the organization. these programs can be incorporated in the human resource functions, which include recruitment, selection, training and orientation as well as rewarding. however, the management should ensure that the programs put in place do not promote the very behaviors they are meant to restrict. without the implementation of ethics for the management of human resources in the organisation, achievement of objectives becomes a mirage. business ethics must be implemented and maintained by the organisation for better performance and for providing justices. the recommendations for the implementation of ethics within an organisation are as follows: constant reviewing of the code of ethics by the board members educate employees about the code of conducts organisational rules and regulation must be printed and displayed in display areas provision of ethics training facilities handling of violators with fairness and equal application references 1. business case studies, 2018. business ethics and corporate social responsibility. [online] available at: https://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporatesocial-responsibility/what-are-business-ethics.html [accessed on 11 march, 2022]. 2. de gama, n., mckenna, s. and peticca-harris, a., 2012. ethics and hrm: theoretical and conceptual analysis. journal of business ethics, 11 (1), 97-108. 3. ferrell, o. c., fraedrich, j. and ferrell, l., (2009). business ethics: ethical decision making and cases. mason, oh: cengage learning 4. frey, r.g. and wellman, c.h. eds., 2008. a companion to applied ethics. john wiley & sons. 5. graham, g., 2004. eight theories of ethics. routledge. 6. greenwood, m. and freeman, r.e., 2011. ethics and hrm: the contribution of stakeholder theory. business & professional ethics journal, pp.269-292. 7. gustafson, a., 2013. in defense of a utilitarian business ethic. business and society review, 118(3), pp.325-360. 8. jack, g., greenwood, m. and schapper, j., 2012. frontiers, intersections and engagements of ethics and hrm. journal of business ethics, 10(1), pp.1-12. 9. janssens, m. and steyaert, c., 2009. hrm and performance: a plea for reflexivity in hrm studies. journal of management studies, 46(1), pp.143-155. 10. johnston, k., 2018. a list of ethical issues for human resource management. [online] available at: https://yourbusiness.azcentral.com/list-ethical-issues-human-resource-management-24052.html [accessed on march, 12, 2022]. 11. köster, m., (2007). ethics in human resource management. norderstedt: grin verlag 12. phillips, r., freeman, r.e. and wicks, a.c., 2003. what stakeholder theory is not. business ethics quarterly, 13(4), pp.479-502. 13. pinnington, a., macklin, r. and campbell, t., (2007). human resource management: ethics and employment. oxford, ny: oxford university press 14. saiyadain, (2009). human resources management. new delhi: tata mcgraw-hill education. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 36 www.americanjournal.org 15. sims, r. r., (1994). ethics and organizational decision making: a call for renewal. westport, ct: greenwood publishing group 16. society for human resource management, 2010. ethics in human resource management. [pdf]. available at: https://www.shrm.org/academicinitiatives/universities/teachingresources/documents/gusdorf_et hics%20in%20human%20resource%20management_im_final.pdf [accessed on march, 12, 2022]. 17. spencer, m. p. and sims, r. r., (1995). corporate misconduct: the legal, societal, and management issues. westport, ct: greenwood publishing group american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 53 www.americanjournal.org actual analysis of uzbekistan’s stock market: problem, solution and suggestions butaev javlon inatillo o‘g‘li doctoral student of tashkent institute of finance uzbekistan, tashkent city. e-mail: butayevjavlon@gmail.com a b s t r a c t k e y w o r d s in this article, the development of all branches and sectors of the economy requires the harmonious development of the real sector and the financial sector. in this, the development of the country’s economy is directly related to the stock market, and the analysis of the modern state of the stock market of uzbekistan and developed countries was carried out a number of scientific proposals and practical recommendations were given on the creation of economic conditions and the further improvement of the stock market, and opinions of foreign and local scientists were presented on this topic. stock market, capital market, investor, capitalization, depositor, issuer, share, bond, joint stock company. 1. introduction regardless of the economic progress of some developed countries, we can witness the rapid growth of the capital market and the stability of the investment flow. the stock market performs important tasks in the economy, that is, transforming savings into investment, effectively distributing and redistributing financial and investment resources to promising sectors of the economy, servicing the public debt, redistributing the ownership of means of production, business development and additional work. creation of positions serves to direct temporarily free financial resources to the goals of economic development. with the help of the stock market, both the state and enterprises attract the necessary funds for the implementation of development and socially important programs. also, stock exchanges operate in the market economy of many of the most modern countries of the world. at the same time, stock exchanges are considered as the most important institution of the market economy, and the activities of the respective financial institutions include many important tasks based on the national economy. a stock market is a set of mechanisms that allow transactions with physical or securities. a stock exchange is an organized market for the trading of securities. it is a place where buyers and sellers of securities meet [1]. on october 7, 2019, president of the republic of uzbekistan shavkat mirziyoev held a meeting on the development of the stock market. at this meeting, tasks were given to increase the types of securities traded in the capital market, based on world practice. mailto:butayevjavlon@gmail.com american journal of business management, economics and banking volume 10 march, 2023 p a g e | 54 www.americanjournal.org measures to increase the demand for securities, attract foreign exchanges, brokers and banks to the stock market of our country were discussed. the issues of directing a certain percentage of assets of insurance companies to the stock market, allowing banks to purchase highly liquid securities in the primary market were considered. the need to strengthen the protection of the rights of investors and minority shareholders, improve the payment and collection of dividends was stressed. in addition, the task was given to develop corporate governance, transition to international financial reporting and international auditing standards. the development of the sector also depends on the qualifications of specialists and the literacy of the population in this area. today, there are only 300 specialists in our country with the appropriate qualification certificates. thousands of people work in this field in developed countries. attention was also paid to providing more information about the changes in the stock market and increasing the financial literacy of the population. the officials were briefed on the issues discussed at the meeting and priorities were identified. therefore, it is planned to develop a strategy for the development of the stock market in 2020-2025. it is planned to increase the ratio of free-floating securities to gdp by at least 10-15% by the end of 2025 [2]. 2. literature review in particular, raymond barr, a foreign economist, describes the stock market as follows. “the stock market, as a technical institution, performs the function of redistribution of free funds, assesses property rights, redistributes risks, redistributes information among participants in the business cycle. therefore, the stock market is a long-term idle capital market that collects and consolidates funds. these funds will be directed to long-term immobilization networks” [3]. in particular, gregory menkyu, one of the most modern and well-known foreign economists, describes the stock market in this way. “in many cases, such a definition of the stock market is common, that is, it is a set of financial institutions that allow those who wish to save, and in the stock and bond markets to lend their funds to borrowers” [4]. this is how foreign modern and well-known economists k.r.mcconnell and s.l.brew describe the stock market. “the stock market is an institution that recommends capital and brings together buyers” [5]. one of the leading researchers of the russian financial market mirkin y.m. describes the stock market as follows: “the stock market is a place in the financial market where the provision of temporary free cash resources through financial intermediaries based on the provision of consolidated financial services and the use of financial instruments in the form of commodity financial products” [6]. the concepts of stock market and stock market are common in economic literature and vocabulary. in particular, e.f.zhukov writes: “currently, there are three markets for securities involved in financing the economy: over-the-counter, stock (exchange) and street” [7]. the role of the intermediary in the capital market is the process of mobilizing long-term funds of the population, including funds of companies and organizations, and investing these funds in securities listed on the stock exchange. as a result, securities issuers and sellers receive funding [8]. according to y. rubin and v.soldatkin, the stock exchange is, first of all, a place where sellers and buyers of securities find each other, where the price of these securities is determined by supply and american journal of business management, economics and banking volume 10 march, 2023 p a g e | 55 www.americanjournal.org demand for them, and the buying and selling process is governed by rules and regulations. regulated, i.e. it is a well-organized stock market [9]. according to berdnikova, the stock exchange is the organizer of trading in the stock market [10]. according to l.chaldaeva and a.kilyachkov, government securities, corporate securities and derivative financial instruments (derivatives) will be traded in the securities market [11]. according to shokhazami, one of the leading scientists in the country, the securities market trading systems are the conclusion of a contract, verification of the parameters of the contract, clearing (settlement), fulfillment of the terms of the transaction (payment). and a market mechanism organized as a complex trading industry consisting of a set of economic, technical, technological and organizational tools that enable the transfer of securities to a new owner) [12]. the issuance of securities allows enterprises to implement large financial investment projects. for this reason, it is advisable to increase the number of joint stock companies in the regions of the country. an increase in the number of joint-stock companies will allow modernizing the production or service process [13]. 3. research methodology in this article, the scientific works and articles of foreign and local scientists dedicated to the analysis of sources representing the role and importance of the national stock market of uzbekistan in the economy are studied. economic research methods such as graphical grouping, economic-statistical analysis and synthesis, logical reasoning was widely used as a research methodology. 4. analysis and discussion of results it should be noted that all segments of the financial market are interconnected and move together. for example, the stock market also consists of the money market and the financial capital market, which includes securities with a maturity of up to one year in the money market, and securities with a maturity of more than one year in the financial capital market. thus, the stock market is part of both the money market and the capital market at the same time. as of january 1, 2022, 607 in the central depository 153 047.94 billion soums of the joint-stock company with a total face value of 12,211.14 billion units securities issue account being conducted (figure 1). figure 1. the total volume of issues and the number of shares issued as of 2021-2022 [14] 0.00 20,000.00 40,000.00 60,000.00 80,000.00 1,00,000.00 1,20,000.00 1,40,000.00 1,60,000.00 1,49,502.26 10,048.12 1,53,047.94 12,211.14 total volume of issues (billion soums) number of issued shares (billion) 2022 1,53,047.94 12,211.14 2021 1,49,502.26 10,048.12 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 56 www.americanjournal.org in 2021, the volume of securities issues will reach 3545.68 billion. the number of shares increased by 2,163.01 billion soums. increased by one. the central depository also maintains 365.6 thousand corporate bonds issued by 10 issuers with a total amount of 783.30 billion soums. their 374.13 billion soums. a total of 41.4 thousand units were issued by 5 llc’s. as of 01.01.2022, the state share in 234 joint-stock companies amounted to 125,322.1 billion soums (including the state depository in the form of shares of 222 joint-stock companies in the amount of 125,310.6 billion soums in the central depository). in 2021, the number of joint-stock companies with a state share in the charter capital will increase to 20, the existing state share the volume decreased by 2,279.0 billion soums. the volume of shares of economic management bodies in the charter capital of 163 jscs amounted to 7,482.3 billion soums. in 2021, the volume of assets of economic management bodies increased by 3,097.8 billion soums, and the number of jscs decreased by 13. figure 2. the number of joint-stock companies operating in the republic of uzbekistan as of 2021-2022 [14] the central securities depository shall ensure the single accounting of securities in the depository system of the republic of uzbekistan. in 2021, the central securities depository received 173 sets of documents for the issuance of securities by the authorized state body for regulation of the securities market. during the reporting period, the central securities depository accounted for a total of 122 issues, including 18 issues of primary and new, 95 issues of additional securities and 9 issues of bonds. issuance of securities of 8 issuers due to liquidation, part of securities issues of 28 issuers, one or more issues of 8 issuers and bonds of 6 issuers issues were withdrawn from the central depository. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 57 www.americanjournal.org figure 3. dynamics of changes in the state share in joint stock companies in 2021 [14] the central securities depository also keeps records of the rights of 51 investment intermediaries and their clients to securities. as of 01.01.2022, the number of clients of investment intermediaries who opened deposit accounts 715.60 thousand, including 60.00 thousand legal entities and 656.60 thousand individuals. compared to the same period last year, the number of depot accounts decreased by 0.96%. accounted by investment intermediaries. the total volume of securities at face value amounted to 8,408.86 billion soums. 2,452.25 billion soums were spent. pieces formed a security. the volume of securities accounted by investment intermediaries increased by 28.76% compared to the same period last year. table 1 information on the issue of shares accounted for in the central depository as of 2022 (territorial share issuers) [14] nu. regions billion soums number of joint stock companies 1. tashkent city 144 764,1 252 2. tashkent region 4 911,6 50 3. kashkadarya 2 938,2 43 4. navoi 2 556,0 18 5. fergana 1 327,7 44 6. andijan 921,1 36 7. samarkand 625,1 30 8. jizzakh 481,7 17 9. khorezm 311,4 29 10. namangan 300,7 22 11. surkhandarya 293,2 22 12. syrdarya 284,5 16 13. bukhara 205,7 35 14. republic of karakalpakstan 187,9 20 as can be seen from the table above, the highest number of joint-stock companies is 252 in tashkent. in particular, 144,764.1 billion soums were allocated for the issuance of shares. the city of tashkent is ahead. this shows that in our regional analysis, the tashkent sphere is at the top and the stock market is functioning optimally. 599 599 599 596 596 601 601 601 603 603 603 607 252 241 238 234 236 240 242 242 239 240 238 234 0 100 200 300 400 500 600 700 800 900 01.2021 02.2022 03.2021 04.2021 05.2021 06.2021 07.2021 08.2021 09.2021 10.2021 11.2021 12.2021 joint-stock companies with state share total joint stock companies american journal of business management, economics and banking volume 10 march, 2023 p a g e | 58 www.americanjournal.org concluding from the above theoretical issues, we have given the following authorial definition of the stock market. “the stock market as a segment of the financial market is an infrastructure element of public economic policy, which allows to solve various macroeconomic problems”. these problems include: increased concentration and generalized production; attracting free funds and distributing them among the necessary segments of the economic system; activation of the investment process; transformation of savings of business entities and the population into investment resources; increase the level of capitalization of income of market agents; the involvement of each household in the management of the market and the transformation of private property into the income-generating capital of a wide range of market agents. figure 5. foreign investments in the stock market of uzbekistan (number of foreign shareholders) [14] among these countries, russian shareholders are the leaders in the stock market of uzbekistan. this will have a positive impact on the company’s operations, as well as increase its financial stability in the future. 5. conclusions and suggestions in our opinion, it is appropriate to implement the following measures to improve the stock market in our country and increase its role in attracting investments: 1. it is necessary to bring the regulatory and legal documents into a single system and improve them on issues of compiling and presenting necessary information and reports on the state of the stock market, its participants, their securities and financial and economic activities. the regulatory framework related to the stock market should be simplified and obstacles should be removed; 2. it is necessary to establish a remote organization of the general meeting of shareholders of jointstock companies that are issuers of securities in the online mode. on this basis, the documents and reports submitted to shareholders will be electronic, shareholders time will be saved, transportation costs will be reduced, and one hundred percent participation of all shareholders will be ensured; 3. studying the experiences of developed countries related to the stock market, using the software and technical equipment used in them, and ensuring the qualification of stock market specialists will help 1,493 446 302 162 145 90 82 78 42 35 200 400 600 800 1,000 1,200 1,400 1,600 russia kazakhstan tajikistan kyrgyzstan switzerland germany ukraine usa cyprus great britain american journal of business management, economics and banking volume 10 march, 2023 p a g e | 59 www.americanjournal.org in achieving the set goals; 4. we believe that it is time to introduce new financial instruments into the practice of the stock market, in particular, government securities and derivative securities. for this, it is necessary to develop regulatory documents that encourage the circulation of new financial instruments by the competent state bodies. first of all, it is necessary to develop a special simplified procedure for issuing and registering corporate bonds [15]. the implementation of these measures creates a basis for joint efforts of stock market participants, achieving the set goals, effective use of the potential of the stock market for economic development, and increasing its role in attracting investments. literatura/reference: 1. s.a. obidov. development of the stock market is the most important factor of the national economy – “science and education” scientific journal, january 2021/volume 2 issue 1. page 207. 2. on october 7, 2019, president of the republic of uzbekistan shavkat mirziyoyev held a meeting on the development of the stock market. 3. barr r. political economy. t.-m. international relations, 1995, p.319. 4. m. gregory. principles of economics. spb .: peter kem., 1999, p.538. 5. mcconnell k.r., brew s.l. economics. m: infra m, 2003, p.62. 6. mirkin y.m., mirkin v.y. english-russian explanatory dictionary of financial markets. – m.: alpina publisher, 2008. 7. ed. e.f. zhukova securities market. 2nd ed., revised. and additional textbook. neck of the ministry of defense of the russian federation unity-dana, 2017 463 pages. 8. leonard onyiriuba, capital market dynamics, securities, and bank risk in developing economies, https://doi.org/10.1016/b978-0-12-805479-6.00026-2, bank risk management in developing economies addressing the unique challenges of domestic banks through risk management 2016, pages 511-533. 9. exchange business. textbook / ed. v.a. galanova, a.i. basova. m.: finance and statistics, 2000. p.20. 10. gitman l.j., jonk michael d. fundamentals of investing. m.: publishing house “work”, 1997. s.41-44. 11. tewles r., bradley e., tewles t. stock market. 6th ed.: per. from english. – m.: infra-m, 1997. p.101. 12. muxamedov f.t. directions for the development of securities trading systems in uzbekistan. 08.00.07 – author’s abstract of the dissertation of the doctor of economic sciences (dsc) on a specialty “finance, money circulation and credit”. tfi, tashkent-2019. 13. bakhtiyarovich, ochilov bobur. "analysis of investment activities of the republic of uzbekistan." e conference zone. 2022. 14. www.deponet.uz – prepared by the author on the basis of the official website: “central depository of securities”. 15. bakhtiyarovich o. b. investment activities and performance of gigamon companies around the world //czech journal of multidisciplinary innovations. – 2022. – т. 6. – с. 1-6. http://www.deponet.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 1 www.americanjournal.org liquid gases transmission medium tozalovchi inertial hydrodynamic scrubber ergashev nasimbek akhmadjonovich researcher fergana polytechnic institute n.ergashev@ferpi.uz isomidinov azizjon salomidinovich technical sciences, phd fergana polytechnic institute the republic of uzbekistan asisomidinov@ferpi.uz siddikov rasuljon uktamovich tashkent state named after islam karimov technical university kokan branch head of the department of technical sciences doctor of philosophy (phd) ummatov rustambek bektoshevich tashkent state named after islam karimov senior teacher of kokan branch of technical university madaliyev akhrorbek niizonidin ogli tashkent state named after islam karimov technical university, kokan branch, assistant student a b s t r a c t k e y w o r d s the article presents the theoretical research work carried out on determining the hydraulic resistance and resistance coefficient in the working bodies of the scrubber that washes the industrial secondary waste gases. the equation for determining the total hydraulic resistance of the scrubber is formulated, and the equations for determining the hydraulic resistance and resistance coefficient of each working body are proposed. hydraulic resistance, pipe, guide pipe, conical plug, grid nozzle, resistance coefficient, exhaust gas, gas flow power. there are dry and wet methods of cleaning secondary gases in the industry, and these types of devices have low hydraulic resistance and high efficiency. however, the level of cleaning in the dry method is much lower than the level of manual cleaning. therefore, the trend of using the wet method in the cleaning of industrial dust and secondary gases is increasing in the world today. this method is effective in trapping particles with a high dispersion composition (particle size smaller than 5 μm) in american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 2 www.americanjournal.org a liquid medium. for example: it makes up 95-96% of fuel smoke produced in boiler rooms of thermal power plants, secondary toxic gases released during the reaction in the chemical industry, and paraffin smoke released during the refining process at the oil plant [1, 2, 3, 4 ] . constructions of wet dust and gas cleaning installations are different, and the most common among these installations are scrubbers. the main advantage of scrubbers compared to other wet-type installations is that the waste water is less likely to clog the installation pipes and the sludge produced during cleaning is less likely to stick to the walls of the installation. in addition, it is highly effective in cleaning aggressive gases with high temperature and flow rate [ 1,5,8,9,10 ]. this method also has its own disadvantages, for example, it requires more energy for cleaning than the dry method, and it has to process dust and gases absorbed into the liquid medium. in addition, the efficiency of the scrubbers used in the industry does not always meet the requirements of the current environmental standards in terms of the pdk level of harmful substances released into the atmosphere. this is mainly due to the external influences imposed on the structure and the high level of addition of dust and secondary gases to the gas stream. therefore, to increase the collision probability of dust and secondary gases with liquid droplets, it is necessary to create new effective methods, improve the design of the device, or apply external energy [ 6,7 ]. based on the above, some constructions and their working parameters of the structures that are currently used and have been proven promising in scientific and research work were systematically analyzed. [3, 4, etc.]. the results of the systematic analysis were processed in the matlab program and the advantages and disadvantages of the devices were determined. using the obtained results, an improved structural scheme of the cleaning scrubber was developed by the method of passing gases through a liquid medium [5]. figure 1 shows the scheme of the scrubber. 1 body ; 2 fan ; 3 electric motor ; 4 guide pipe ; 5 – rotating nozzle ; 6 – gas pipe ; 7 liquid pipe ; 8 connector ; 9 sludge pipe . 1.14-rasm. inertial scrubberning schematics the scrubber is composed of a cylindrical vertical body equipped with a rotating shaft and a secondary gas transmission pipe and a fan, a liquid spraying nozzle, a liquid collecting bath and a slurry pipe , and a pipe for releasing the purified gas to the atmosphere. . a rotary nozzle (four nozzles at 90 degree intervals are installed on the rotary nozzle, and it is connected to the guide pipe with a seal and a sealing ring. the nozzle holes are arranged parallel to the liquid) and is immersed in a bath where the working liquid is collected. when the gas to be cleaned passes into the nozzle, the nozzles rotate in the liquid medium due to the difference in gas pressure in the guide pipe and the nozzle. the gas to be cleaned is ejected through the nozzle holes and interacts with the working fluid. during its movement in the liquid medium, the gas is purified. purified gas is released into the atmosphere through a pipe . the main advantage of the device compared to existing scrubbers is, firstly, the amount of working fluid used due to the fact that its nozzles rotate in the liquid medium. increases , secondly, the rotary motion of the valve ensures the curved motion of the gas flow in the liquid medium. this, in turn, increases the mass transfer coefficient . but the operational parameters of inertial devices, including hydraulic resistance , methods of calculating resistance coefficient of working bodies and cleaning efficiency have not been studied. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 3 www.americanjournal.org therefore, this work is inertial directed to the basis of scrubber calculation methods . research of loads affecting the gas velocity in the working bodies of the installation in secondary exhaust gas neutralization installations and the correct construction of the calculation equations is of great importance. this condition is the main factor that determines the optimal parameters of the hydraulic resistance of the structure , the coefficient of resistance in the working bodies and the work performance . an increase in hydraulic resistance in the working bodies of the device has a good effect on the cleaning efficiency , but it causes a decrease in work efficiency. this, in turn, increases energy consumption for cleaning . the investigated scrubber consists of a pipe (8) directing secondary gases and a pipe (2) that circulates the gas flow in the liquid medium under the influence of flow energy. the gas flow experiences hydraulic resistance during its movement in the pipe, when it passes through the guide hole of the pipe, and during its movement in the liquid medium. the general hydraulic resistance affecting the gas being purified in the installation can be written as follows using the calculation equations given in the literature and the section a a of the calculation scheme of the installation . fig. 2 shows the calculation scheme of the scrubber. the equation determining the total hydraulic resistance of the structure can be formulated as follows , pa; , pa ( 1 ) in which p yk is the pressure lost during the movement of secondary gases in the pipeline, which is determined using the darcy-weisbach equation [1, 6]. then the equation can be written as follows, pa; ( 2 ) where υ yk is the speed of the secondary gas in the guide pipe, m/s; ξ yk is the local resistance coefficient of the guide pipe , it is determined according to the following equation; ( 3 ) fig. 2. scrubber calculation scheme стсйкум pppp ++= 2 2 йкар йкйкp    = э йк d l  = american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 4 www.americanjournal.org where l is the length of the line, m; d e the equivalent diameter of the pipe , m; l -darcy's coefficient is determined to be dependent on many factors when expressing the law of change with empirical equations . based on the structure of the experiment, the darcy coefficient in the equation was determined according to the blasius law [6]. then the equation (3) becomes the following form; ( 4 ) if you put the equation (2.4) into the equation (2.2), then the equation (2.2) will look like this, pa; ( 5 ) p ts is the lost pressure when passing through the diverting hole of the gas flow distributor, it is determined by the following equation, pa; ( 6 ) where υ ts is the speed of the gas flow coming out of the valve hole, m/s; ξ ts is the resistance coefficient of the pipe hole, and we determine it using the experimental method conducted by b.a. alimatov and i.t. karimov on the change of the pipe hole resistance coefficient depending on the ratio of the thickness of the pipe hole to the hole diameter [7]. in that case, the calculation equation can be written as follows; ( 7 ) where d is the thickness of the symnik hole, mm; d t the diameter of the hole of the symnik, mm if you put equation (7) in equation (6), then equation (6) will look like this, pa; ( 8 ) p ts is the lost pressure of the gas stream when it passes through the liquid medium, it is determined by the following equation, pa; ( 9 ) where y s is the lost speed of the gas stream passing through the liquid medium, m/s; x s is the coefficient of resistance of the working fluid to the gas flow, which can only be determined experimentally. r ar is the density of the secondary gas and air mixture, which is determined by the following equation. kg/m 3 ; , (10) here ρ d _ secondary gas density, kg/m 3 ; ρ x air density, kg/m 3 ; γ is the amount of secondary gas in the air , %. ( 5 ) into equation ( 8 ) and ( 9 ) into equation (1), it will look like this, pa; 4 re 3164,0 э йк d l = 4 2 re2 3164,0 э йкар йк d l p  = 2 2 тсар тстсp    = т тс d   = т тсар тс d p 2 2  = 2 2 сар ссp    = ( ) += гхар american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 5 www.americanjournal.org ( 11 ) resulting equation ( 11 ) . (9) the resistance coefficient in equation ξ s identification is complicated and requires various exceptions. therefore, we introduce the equation for determining the resistance coefficient by the ratio of the number of revolutions in the open circuit and in the liquid under the influence of the gas flow force of the cylinder . сб хб с n n k= , ( 12) in which n xb the number of revolutions of the syomnik under the influence of natural air pressure , marta/minute; n sb the number of revolutions of the syomnik under the influence of water pressure , marta/minute; k is the correction coefficient, which is determined by experiment. from this equation, it can be seen that an increase in water pressure or viscosity causes an increase in the drag coefficient. , by changing the equation ( 11 ), it will be possible to determine the total hydraulic resistance of the structure as follows , pa;         ++= сб схб т тс э йк арум n n k dd l p 22re2 3164,0 22 4 2   ( 13 ) through the equation (13), we will be able to determine the total hydraulic resistance of the scrubber. used literature [1] isomidinov a.s. development of effective methods and devices for cleaning dust gases of the chemical industry: diss. … phd. tashkent, 2020. 118 p. [2] tozhiev r.j., karimov i.t., isomidinov a.s. scientific and technical basis of industrial use of a device that cleans dirty gases: monograph. fargona 2020 91 p. [ 3 ] isomiddinov, a., axrorov , a. , karimov, i., & tojiyev, r. (2019). application of rotor-filter dusty gas cleaner in industry and identifying its efficiency. austrian journal of technical and natural sciences, (9-10), 24-31. [4] valdberg a.yu., nikolaikina n.e. processes and devices for environmental protection. m. : bustard, 2008. -239 p. [5] rasuljon, t., azizbek, i., & abdurakhmon, s. (2021). research of the hydraulic resistance of the inertial scrubber. universum: engineering sciences, (7-3(88)), 44-51. [6] isomidinov a.s. investigation of the hydraulic resistance of a rotary filter apparatus //universum: technical sciences. – 2019. – no. 10-1(67). [7] isomidinov, a. (2019). mathematical modeling of the optimal parameters of rotory filter apparatus for wet cleaning of dusty gases. international journal of advanced research in science, engineering and technology, 6(10), 258-264.         ++= 22re2 3164,0 22 4 2 сс т тс э йк арум dd l p   american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 6 www.americanjournal.org [8] rasuljon, t., azizbek, i., & bobojon, o. (2021). studying the effect of rotor-filter contact element on cleaning efficiency. universum: engineering sciences, (6-5(87)), 28-32. [9] isomiddinov a.s., davronbekov a.a. investigation of hydrodynamic regimes of a spherical deepened pipe //universum: technical sciences. – 2021. – no. 7-1(88). s. 53-58. [10] isomidinov as, madaliev an hydrodynamics and aerodynamics of rotor filter cleaner for cleaning dusty gases // li international correspondence scientific and practical conference "international scientific review of the problems and prospects of modern science and education". 2018. s. 29-32. [11] rasuljon, t., azizbek, i., & akmaljon, a. (2021). analysis of the dispersed composition of the phosphorite dust and the properties of emission fluoride gases in the production of superphosphate mineral fertilizers. universum: chemistry and biology, (6-2(84)), 68-73. [12] isomidinov, as, & qakhkhorov, i. (2022). investigation of the effect of hydraulic resistance on cleaning efficiency in a rotor-filter device. journal of integrated education and research, 1(1), 173185. [13] mukhtorov, ssogl, & qoxxorov, iiogl (2022). issyklik almashuwchi guurlmalar va ularda process intensification methods tahlili. science and education, 3(5), 370-378. [14] karimov, it, ahrorov, aa, & kahorov, ii (2019). the method of determining the size of the mixing zone bubbling extractor. in international scientific review of the problems and prospects of modern science and education (pp. 11-15). american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 19 www.americanjournal.org using local technologies in the process of rice drying kh. otakhonov teacher of kokand branch of tstu v. ibrokhimov teacher of kokand branch of tstu g’. mamajonov teacher of kokand branch of tstu j. abduvaliev student of kokand branch of tstu a b s t r a c t k e y w o r d s the article provides information on improvisation of agricultural lands in uzbekistan, the using local technologies in the cultivation of rice, protecting rice from external factors during the drying process. agriculture, products, land, enterprises and organizations, crops, hectares, rice, grain, roots. uzbekistan is conveniently located in central asia. it has produced a wide range of agricultural products that have long been considered essential for humanity. because, the natural and climatic conditions in this region are sufficient. in particular, the annual effective temperature in the country is 26-30 °c, with more than 3,600 hours of sunshine, which allows to harvest several times a year. the total area of uzbekistan is 44.4 million hectares (2004), of which 50.8% are used by various agricultural enterprises, organizations and farms: the sum of which is the country's agriculture. its main goal is to meet the needs of the country's population in consumer goods and the processing industry in raw materials with the products produced in the industry. for this: planting of high-quality agricultural products that meet the needs of the population; meet the needs of processing enterprises in agricultural products. at present, the industry produces more than 95% of consumer goods. they include plant and animal products. in 2004, 26.8% of the gross domestic product of the country was created in agriculture. this year, 17.1% of the country's gdp was created in all industries, and 4.5% in construction. the figures show that the role of the agricultural sector in the country's economy is huge. this year, all types of entrepreneurs engaged in agriculture have created a gross output of 4732 billion sums. it mainly produces 3535.4 thousand tons of cotton, 6017.1 thousand tons of grain, 3315.9 thousand tons of american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 20 www.americanjournal.org vegetables, 846.3 thousand tons of fruits, 996.3 thousand tons of meat, 4280 thousand tons of milk, 674.8 thousand pieces of korakul sheep hide, 1860.3 billion eggs and other agricultural products. about 31% of the labor force employed in the economy of the country is involved in the production of all types of agricultural products. but two-thirds of the total population lives in the villages. all products produced 26 mln. hectares of agricultural land, of which 3695.7 thousand hectares are arable land.[1] as of 2003, the rice planting area in uzbekistan is 101.3 thousand hectares, the yield is 28.3 c/ha, and the gross harvest is 287,000 tons. what is rice? and in which countries is it grown? also, what technologies have been used? rice (oryza) is a family of annual and perennial cereals. about 20 species grow mainly in the tropics and subtropics of south and east asia, africa, the americas, and australia. in agriculture, in the warmer regions of the tropics, subtropics, and temperate zones, the annual crop is sh. (o. sativa) type is planted. one of the oldest food crops. it was planted in southeast asia 7,000 years ago. the most ancient sites of rice cultivation are india and china. in central asia, it was cultivated in the 3rd -2nd centuries bc, in europe in the 8th century, and in america in the 15th-16th centuries. in west africa, bare-grained or african rice is also grown, while wild-growing rice (o. punctata) and short-tailed rice used for food. rice in the world. arable land is 155.5 million ha (cultivated in more than 115 countries), yield is 38.4 c/ ha, gross yield is 596.4 mln. t (1999). home rice cultivated countries: china (31.7 million hectares, yield 63.2 c/ha, gross yield 200.4 million tons), india (44.8 million hectares, yield 29.2 c/ha, gross yield 131,2 million tons), indonesia (11.6 million tons, yield 42.9 c/ha, gross yield 49.5 million tons) (1999). in uzbekistan, the sown area is 101.3 thousand hectares, the yield is 28.3 c/ha, the gross yield is 287 thousand tons (2003). in addition, bangladesh, vietnam, myanmar, philippines, brazil, pakistan, cambodia, japan, usa, korea, southern ukraine, shim. rice is also grown in the caucasus, the lower volga, kyrgyzstan and kazakhstan. the root of the city is a poplar root, long (up to 1m). stems straw, 50 cm to 3–5 m long. it usually produces 3-5 or more stems when planted sparingly and when fed a lot. the stems of non-dormant varieties are strong. the leaves are green, reddish or purple, glabrous, 10-30 cm long, self-pollinating. single-flowered spikes are located on the branches of the 2nd order. fruit peeled (curtain) grain; long narrow grain (indian rice) or round wide (japanese rice); white, vitreous, semi-vitreous, or unsaturated when broken. 1000 grains weigh 26-45 g. as a result of centuries of interbreeding of different species and varieties, rice varieties and forms suitable for the soil conditions of each country have emerged. spring rice is a heat-loving and light-loving short-day plant, the seeds germinate at a soil temperature of 10-12°, grow well at 22-27°. vegetation period is 120-130 days (100-145 in uzbekistan), sh. irrigated (irrigation norm 16-24 thousand m³/ha). during the collection period, the pipe is pressed with water to a thickness of 5-25 cm. water is released during wax cooking. rice grows well in black, chestnut and marshy soils. [2] rice is one of the most valuable food crops. it is the world's second largest agricultural production after wheat. in 2004, the world's rice acreage was 153.2 million hectares. the main rice-growing countries in southeast asia are burma, india, indonesia, china, thailand and the philippines. overall, part of asia accounts for 90% of world rice production. 90% of the world's rice is grown here. for 15 years, rice yields have increased by 30% for this purpose. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 21 www.americanjournal.org • after growing rice, we dry it using various modern technologies for processing. one such device is this year's rice product from tct rice llc, which is fully processed in the cluster itself. for this purpose, a project worth 14 billion sums "rice processing and storage complex" was built on the territory of "surum" farm in lower chirchik district. • the construction of a modern plant and the installation of the necessary technological equipment are currently being completed. in other words, the equipment worth 1.697 million euros imported from the turkish company yashar makina is being installed by foreign experts. the plant uses drying and processing technologies for 10 tons of rice per hour and 15,000 tons per season. [3] however, such technologies pose a problem for small rice farmers in purchasing equipment, as devices are expensive for them. in addition, the lack of localization of such structures has led to a sharp increase in the cost of production. in case of damage, the main parts will be purchased from abroad and a repair specialist will also be brought in from abroad. this leads to excessive costs. given these problems, the proposed device will be manufactured locally. this device works 100% automated. basically, during the drying of rice, it is saturated with sunlight and then sent to a rice processing plant. if a number of events related to rain and other water during the drying process affect the drying of the rice, the sensitive sensors are activated and the protective caps are activated. the protective caps are then closed to keep the rice from drying out. in this way, bacteria, viruses and rot of rice are prevented. due to the use of local details in the production of the device, the cost of delivery and installation and maintenance of farms is 60-75% cheaper than imported rice dryers. shelf life is also 5-10 years. the use of the device has an artificial and natural comfortable environment that is different from other devices. this picture shows a device that protects rice from external factors during drying. operating stages of rice dryer: 1-the protective cover opens automatically to dry the rice 2-if the rain and external factors adversely affect the drying of the rice, the protective coating is automatically sealed american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 22 www.americanjournal.org 3-the protective cover opens automatically when the impact of rain and external factors on rice drying is reduced. 4-once the rice is dry, it is automatically sent to the processing plant resources used: 1. h.atabayeva, o.qodirkhujayev botany, t.new century generation. 2006 (in the latin alphabet) 2. a. omonov, h. buriyev, l. gafurova, a. nurbekov one grain. 3. shaumarov x.b. islamov s.ya technology of storage and primary processing of agricultural products, tashkent, 2011. 4. buriyev h.ch., jorayev r.j., alimov o. storage and processing of grain products.-t .: mexnat, 1997. 5. otabayeva hn, kadyrkhojayev o. botany (in latin) tashkent, 2006. 6. otahonov h.r. the use of the robust control method for regulation in syrchnous gerenerator systems. kokand 2022. used internet resources: 1.https://uz.wikipedia.org/wiki/sholi 2. https://xs.uz/uz/post/ozbekistonda-yangi-tekhnologiyalar-asosida-sholi-etishtiriladi 3. https://vaqt.ucoz.com 4. www.ziyonet.uz 5.https://xs.uz/uz/post/ozbekistonda-sholi-etishtirish-bojicha-yangi-lojiha-amalga-oshirilmoqda 6. https://staff.tiiame.uz 7.https://hozir.org/ozbekiston-respublikasi-oliy-talim-vazirligi-mirzo-ulugbek-nom-v4.html 8. https://arxiv.uz 9. https://hozir.org https://uz.wikipedia.org/wiki/sholi https://xs.uz/uz/post/ozbekistonda-yangi-tekhnologiyalar-asosida-sholi-etishtiriladi https://vaqt.ucoz.com/ http://www.ziyonet.uz/ https://xs.uz/uz/post/ozbekistonda-sholi-etishtirish-bojicha-yangi-lojiha-amalga-oshirilmoqda https://arxiv.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 112 www.americanjournal.org actual issues of improving the initial stage of the criminal process khidoyatov bakhtiyar batirovich professor of the department of "criminal procedure law" tsul, candidate of law. е-mail:b.khidoyatov@tsul.uz a b s t r a c t k e y w o r d s this article discusses topical issues of conducting a pre-investigation check in a criminal case. in the world criminal proceedings, special attention is paid to ensuring the “right of an individual to a trial within a reasonable time”, improving the criteria and forms of differentiation of the criminal procedural form, critical assessment of existing procedural forms, the introduction of new procedural forms based on the public danger of a crime, the creation of effective mechanisms for resolving criminal disputes. in this regard, there is an urgent need to improve some institutions and the procedural order of investigative actions of the national criminal procedure legislation. pre-investigation check, personal law, justice, procedural forms, inquiry, investigation, investigation, refusal to initiate criminal proceedings, suspect, victim. introduction in the republic of uzbekistan, ensuring the right to access to justice is one of the most important procedural guarantees, the implementation of which is carried out by unconditionally and strictly fulfilling the tasks of criminal procedure legislation defined in the provisions of article 2 of the criminal procedure code of the republic of uzbekistan. it should be noted that they reflect the priority of protecting the rights and legitimate interests of persons affected by criminal acts, which fully meets both international legal norms and the norms enshrined in articles 25-27 of the constitution of our country. at the same time, it should be noted that the normative regulation of the primary stage of pre-trial proceedings in a criminal case and the existing practice do not fully guarantee the right of citizens to access fair justice. unfortunately, cases of illegal and unjustified refusals to initiate criminal proceedings and gross violations of laws are still being recorded. in this regard, president of the republic of uzbekistan shavkat mirziyoyev emphasizes that "... the adoption of laws is only part of the work. the main issue is timely informing the people and responsible executors of the essence and meaning of laws, organizing their correct implementation and ensuring strict compliance with their requirements "[1]. we believe that the implementation of the tasks set by the head of state requires improving the quality and efficiency of legal work, primarily in the law enforcement system. meanwhile, violations of the criminal procedure law make it impossible for citizens to exercise their rights to access justice. this is due to the fact that the current procedural procedure for initiating a american journal of business management, economics and banking volume 15 august, 2023 p a g e | 113 www.americanjournal.org criminal case leads to the fact that the procedural status of some persons participating in the preinvestigation check, in fact, remains uncertain. according to article 320.1of the criminal procedure code, pre-trial proceedings include a preinvestigation check and investigation of a criminal case. the legislation provides for two forms of investigation: an inquiry and a preliminary investigation, which is carried out by inquirers and investigators, as well as by prosecutors in cases established by the code of criminal procedure. at the same time, today the pre-investigation check that precedes the decision to initiate a criminal case, in fact, is the initial process of investigative knowledge, and allows you to collect a fairly large amount of evidentiary information. by virtue of part 2 of article 320.22, part 2 of article 329 of the criminal procedure code of the republic of uzbekistan, during a pre-investigation check, a person may be detained, as well as such investigative actions as a personal search and seizure, an inspection of the scene of an accident, an expert examination, and an audit is appointed. in addition, competent persons have the right to give mandatory instructions on conducting operational search activities, to request additional documents and explanations, including from applicants. at the same time, there is a significant procedural gap in this part, since the very uncertain legal status of the persons from whom documents and explanations are requested, as well as applicants, does not allow them to exercise their rights and legitimate interests in the perspective they want, and the scope of these rights is insignificant. meanwhile, it is worth noting that although the national jurisprudence pays a lot of attention to the work with appeals of individuals andих лиц уделяется немало внимания legal entities [2], however, an application for committing a crime is radically different from other types of appeals, both in terms of the procedure for accepting and the procedure for consideration. unfortunately, it is precisely procedural (procedural) issues, in particular the initiation of criminal proceedings, as a result of consideration of the appeal, that are not yet given due attention in legal science. thus, article 321 of the criminal procedure code of the republic of uzbekistan states that an inquirer, investigator, prosecutor and an official of the body conducting a pre-investigation check, within the limits of their competence, are obliged to initiate a criminal case on a crime in all cases where there are reasons and sufficient grounds for this. according to part 3of article 39.2 of the criminal procedure code of the republic of uzbekistan, urgent actions are carried out in order to prevent or prevent the commission of a crime, collect and preserve evidence, detain a suspect in the commission of a crime and search for fugitive suspects, as well as to ensure compensation for property damage caused by a crime. from these provisions of the criminal procedure code of the republic of uzbekistan, it can be concluded that during a pre-investigation check, in fact, the procedural right to defense, the right to refuse to provide documents, the right to refuse to give explanations, the right to appeal against the actions (inaction) of officials of the bodies conducting the pre-investigation check and their decisions remain without regulatory consolidation. the fact is that the current legislation does not regulate the corresponding duties of officials of bodies conducting pre-investigation checks to explain the rights and obligations of participants in pre-investigation checks in relation to this stage of the criminal process. in fact, the code of criminal procedure of the republic of uzbekistan does not pay due attention to the status of such persons, since it is assumed that they can acquire the corresponding rights after registration of their procedural status (usually as a suspect, victim, witness or civil plaintiff). at the same time, a suspect, a victim, or a witness can use the right to lawyer's services, and any person who believes that there are grounds for this can bring complaints about the actions (inaction) of officials. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 114 www.americanjournal.org as legal practice in ukraine shows, in the course of research on information about a crime committed or being prepared, law enforcement agencies often have well-defined data about the person who committed the crime, as well as about those who are its victims, but not yet sufficient to recognize the former as suspects and the latter as victims, and therefore in the process of communication, and in some procedural documents, the former are called suspected of committing a crime, and the latter – victims of it. although such names of these persons reliably reflect their actual position in the pre-investigation criminal process, from a legal point of view, the current criminal procedure legislation does not regulate their activities in any way. therefore, the question of how to properly name these subjects remains open and continues to be discussed in the literature. it is not by chance that, reflecting this situation, a proposal is made in the specialized literature to resolve this issue in a legislative manner, adding a special norm to the code of criminal procedure of the following content: "a person who is brought to the competent state body on suspicion of committing a crime is considered suspected of preinvestigation criminal proceedings. the suspected person has the right: to refuse to give evidence; to present evidence; to request additional pre-investigation procedural actions; to object to the grounds for refusal to initiate criminal proceedings, and in case of refusal to initiate criminal proceedings – to demand continuation of the proceedings in the usual manner; to get acquainted with the materials of pre-investigation proceedings in case of refusal to initiate criminal proceedings; to appeal actions and decisions production officials. the explanation of rights to the suspected person is indicated in the delivery protocol" [3]. among other subjects of pre-investigation proceedings, an equally interesting procedural figure is the victim of a crime, i.e. a person who has suffered moral, physical or property damage. suffering a variety of hardships and hardships in connection with such consequences, the named person, in one way or another, in any case not only suffers, but also urgently needs to protect their violated rights, and therefore the corresponding legitimate interests. reflecting the actual situation of such persons both in everyday life and in the practice of law enforcement agencies, they are called victims, while offering to legally regulate their legal status in pre-investigation criminal proceedings [4]. it is clear that both persons have their own interests in the same proceedings and, on this basis, are not only among the interested parties, but also belong to the general system of those whose rights and legitimate interests should be ensured in pre-investigation criminal proceedings. since a person suspected of committing a crime experiences a number of legal and factual influences from law enforcement agencies in the course of criminal procedure proceedings (for example, when he is brought to the body of inquiry, interviewed, required to answer questions, etc.), he should naturally have both rights and corresponding duties, this means relying on the help of persons and bodies conducting the process, ensuring the implementationof their rights and legitimate interests [5]. taking into account possible situations in practice, we believe it is possible to define in the domestic legislation procedural guarantees for citizens who may later acquire one or another procedural status: – for the suspected person – the duty of the body conducting the pre-investigation check to accept a statement of guilt, explain the rights and obligations of the person in respect of whom the preinvestigation check is being conducted (the right to a lawyer, refusal to give explanations, etc.); for the victim – the duty of the body carrying out the pre-investigation check to accept the application, report on the crime, explain the rights (including compensation for damage), conduct a pre-investigation check, and ensure their safety; american journal of business management, economics and banking volume 15 august, 2023 p a g e | 115 www.americanjournal.org – for persons who receive explanations – it is the duty of the body conducting the pre-investigation check to explain to them the right not to incriminate themselves, to use the services of a lawyer, and to ensure their safety. we consider it necessary to draw attention to another gap in the code of criminal procedure. thus, according to part 2 of article 329 of the code of criminal procedure, additional documents and explanations may be requested during a pre-investigation check, as well as a person may be detained, a personal search and seizure in accordance with part two of article 162 of the code of criminal procedure, an inspection of the scene of an accident, an expert examination, an audit is appointed, and instructions are given to conduct operational search measures. it is prohibited to perform other investigative actions during the pre-investigation check. during the appointment of an expert examination, it is often necessary to conduct another investigative action, such as obtaining samples for expert examination. however, the pre-investigation inspection bodies cannot perform this investigative action because this investigative action is not listed in part 2 of article 329 of the code of criminal procedure and according to this norm it is prohibited to perform other investigative actions other than those listed in this article of the code of criminal procedure. in addition, article 189 of the code of criminal procedure does not specify pre-investigation bodies among the persons and bodies entitled to receive samples for expert research. as we noted earlier, the participation of persons in respect of whom a pre-investigation check is being conducted, or on whose applications it is being conducted, in the production of investigative and procedural actions, is not defined in the provisions of the criminal procedure code of the republic of uzbekistan. accordingly, the principles of justice acquire elements of declarative nature: on the one hand, they are legally fixed, on the other hand, there is a legal uncertainty in their guarantee at a certain stage. in fact, the initial stage of pre-trial proceedings in a criminal case leaves a wide margin of appreciation for the person who checks the report of a crime. in this regard, there are not only cases of hiding this information from accounting, but also various other violations of the law, including those related to jurisdiction and jurisdiction [6]. as a result of abuse by officials, the following consequences may occur: concealment of the received crime report from registration; making an illegal and unjustified procedural decision to initiate a criminal case; making an illegal and unjustified procedural decision to refuse to initiate criminal proceedings; unjustified delay in making a procedural decision on reporting a crime. of course, in this aspect, prosecutor's supervision is an important lever that allows you to protect the violated rights of applicants relatively painlessly. however, prosecutor's supervision cannot be considered a panacea: first, it is carried out, as a rule, after the violation (after the fact); secondly, prosecutors cannot physically check all materials of pre-investigation checks or criminal cases; third, prosecutor's supervision cannot replace the required norm of the criminal procedure code of the republic of uzbekistan and provide procedural guarantees of access to justice. it is worth noting that in a number of post-soviet states (ukraine, kazakhstan, georgia, belarus) there are already positive examples of solving this problem. they can be taken into account when improving the criminal procedure code of the republic of uzbekistan. javascript:scrolltext(3349411) american journal of business management, economics and banking volume 15 august, 2023 p a g e | 116 www.americanjournal.org in particular, the criminal procedure codes of ukraine and kazakhstan provide for such an interesting mechanism – the unified register of pre-trial investigations (hereinafter-erdr). to a certain extent, its similarity exists in the republic of uzbekistan in the form of records of the department of criminal and legal statistics of the prosecutor general's office of the republic of uzbekistan and corresponding departments in the prosecutor's offices of karakalpakstan, regions and tashkent, where all criminal cases are registered. carticle 179 of the criminal procedure code of kazakhstan requires registration of information about the crime committed. the applicant is issued a document on registration of the accepted application or message about a crime, indicating the person who accepted the application or message, the time of its registration and the time when the decision should be made. in both countries, the prosecutor acts as the head of the pre-trial investigation, which contributes to improving its quality. part 1 of article 100 of the code of criminal procedure of georgia imposes on the investigator and prosecutor the obligation to start an investigation after receiving information about a crime. according to article 172 of the criminal procedure code of the republic of belarus onthe rgan of criminal prosecution is obliged to accept, register and consider an application or report on any crime committed or being prepared. the applicant is issued a document on registration of the accepted application or message about a crime, indicating the official who accepted the application or message, and the time of their registration. it should be noted that the national legislation at the stage of initiation of criminal proceedings provides for greater procedural activity of the bodies conducting pre-investigation checks, the inquirer or investigator, and the role of the prosecutor is more supervisory in nature, although article 3202 of the code of criminal procedure reflects that a pre-investigation check can also be carried out by the prosecutor. the criminal procedure codes of kazakhstan, georgia and ukraine refused the mechanism of preinvestigation verification of reports of a crime, recognizing the administrative nature of the procedural decision to start a pre-trial investigation, authorized the prosecutor to direct it (articles 36, 214 of the criminal procedure code of ukraine, article 32 of the criminal procedure code of georgia, article 58 of the criminal procedure code of kazakhstan) [7]. in other words, in the criminal proceedings of ukraine, kazakhstan and georgia, the supervision of the prosecutor at the initial stage of pre-trial proceedings in a criminal case organizes the investigation from both substantive and procedural positions. currently, many researchers recognize the institution of initiating criminal proceedings, which has been preserved in the criminal procedure code of many post-soviet countries since earlier times, as an" exclusive " anachronism that has no analogues in foreign legislation, sometimes making criminal procedure work-intensive and ineffective [8]. however, not all scientists agree on a radical reform of this stage, considering it excessively costly [9]. we believe that the costs of reorganizing pre-investigation work, although they may be significant, but the creation of an effective mechanism for protecting persons affected by crimes, is more important in terms of the value of individual rights and freedoms, while ensuring which costs cannot be taken into account. by the way, in ukraine, georgia and kazakhstan, after the innovations, no collapse of pre-trial proceedings occurred, and the practice of applying new provisions of the criminal procedure law made it possible to increase the protection of citizens [10]. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 117 www.americanjournal.org thus, the initial stage of pre-trial proceedings in a criminal case is still not free from shortcomings that create obstacles to rapid and timely response to citizens appeals and other reasons for initiating criminal proceedings. however, in criminal proceedings, it is the effectiveness of the pre-investigation check, as the primary stage of pre-trial proceedings, that is of great importance, since prompt response to each crime requires the creation of a legal regulation of criminal procedure relations, which excludes longterm verification of the received application or message without providing the necessary procedural guarantees of the rights of persons participating in the verification stage. based on the above, we consider it necessary to agree with some of o. a. malysheva's suggestions on the expediency of identifying the following areas for improving criminal procedure legislation: first, an article should be fixed in the code of criminal procedure that provides for the mandatory acceptance and consideration of applications and reports on a crime and its immediate registration in the presence of the applicant or an interested person (representative), indicating that refusal to accept a report on a crime is not allowed; secondly, it is necessary to define in more detail the procedure for conducting a pre-investigation check, indicating specific provisions on the legal status of persons participating in the pre-investigation check stage, on the mechanism for implementing the rights and freedoms of these persons, using references to the norms of the criminal procedure code regulating the procedural status of a suspect, accused, victim, witness [11]. in our opinion, it is currently not possible to eliminate the stage of initiation of criminal proceedings in the criminal process of the republic of uzbekistan from the point of view of sufficient staffing and financing of investigative activities. therefore, during the transition period, it is necessary to expand the list of investigative actions allowed under the pre-investigation check, improve the procedure for accepting statements and reports on a crime, as well as explain the rights of participants in the preinvestigation check. references 1. sh. m. mirziyoyev. ensuring the rule of law and human interests-a guarantee of the country's development and people's well-being: report of the president of the republic of uzbekistan shavkat mirziyoyev at a solemn meeting dedicated to the 24th anniversary of the adoption of the constitution of the republic of uzbekistan. // http://old.president.uz/ru/news/5384/. 2. a. otazhonov, b. khuzhakulov. ички ишлар органларининг мурожаатлар билан ишлаш фаолияти. // zh.bulletin of the academy of the ministry of internal affairs of the republic of uzbekistan, no. 1 (2017), pp. 3-9; s. yusupov. жисмоний ва юридик шахслари мурожаатларининг тааллуклилиги масалалари. // zh.advocate-no. 2 (2017). pp. 29-32; i. isaev, s. shamsiddinov. мурожаат ортида инсон бор. // ж.kalkon. no. 6. (2017). p. 5-6. 3. loboyko l. n. aktual'nye problemy predsledstvogo ugolovnogo protsessa: dis. kand. legal department.sciences – university of internal affairs. kharkiv, 1997, p. 49. 4. питання боротьби зiзлочиннiстю. – х., 2008. вип. 15. – 324 с. 5. худайбергенов б. к. правовая природа отношений, регулируемых институтом возбуждения уголовного дела //academy. – 2021. – №. 4. – с. 3741.. 6. skoblikov p. a. counteraction of law enforcement officers to the initiation of criminal cases: a system of typical techniques and tricks. // law, 2016, no. 7, pp. 92-105. http://old.president.uz/ru/news/5384/ american journal of business management, economics and banking volume 15 august, 2023 p a g e | 118 www.americanjournal.org 7. abramenko a. a. actual issues of reforming the initial stage of pre-trial proceedings in a criminal case. / aktual'nye problemy yurisprudenii: sb. st. po mater. v international scientific and practical conference no. 5 (5). novosibirsk: sibak publ., 2017, pp. 126-134. 8. makhov v. n. features of pre-trial proceedings in the criminal process of the russian federation. // bulletin of the peoples ' friendship university of russia. series "legal sciences". 2015, no. 1, pp. 24-28; abramenko a. a. actual issues of reforming the initial stage of pre-trial proceedings in a criminal case. / aktual'nye problemy yurisprudenii: sb. st. po mater. v international scientific and practical conference no. 5 (5). novosibirsk: sibak publ., 2017, pp. 126-134. 9. volevodz a. g. abolition of the stage of initiation of a criminal case: the price of the issue. // criminal proceedings, 2014, no. 1, pp. 80-83. 10. худайбергенов , б. 2022. сравнительный анализ первоначальной стадии уголовного процесса некоторых зарубежных стран. общество и инновации. 3, 7/s (авг. 2022), 138–144. 11. malysheva o. a. pre-trial proceedings in the russian criminal process: problems of implementation and legal regulation: dis. ... doct. legal department. sciences': 12.00.09. moscow, 2013. 506s. american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 29 www.americanjournal.org possibilities and opportunities to achieve financial sustainability in iraq after 2003 (future vision) *extracted research 1 prof. dr. jalil kamel ghaidan 2 fatima rahim hamid 1economic department, wasit university -iraq-wasit-kut-52001 email: jkamil@uowasit.edu.iq 2economic department , wasit university -iraq-wasit-kut-52001 email: fatemaraheem2@gmail.com a b s t r a c t k e y w o r d s many studies in the last three decades have focused on public debt management, known as financial sustainability, as public debt is considered financially sustainable if it fulfills the condition of the ability to pay the debt (solvency condition fiscal). for this condition to be fulfilled there must be a primary surplus in the budget sufficient to pay off this debt, whether it’s essential value or the benefits accruing from it; that is, this condition requires that the volume of the current deficit, in addition to the current discounted value of spending, not exceed the present value of the return. in other words, the present value of the debt should be greater than the current discounted value of the total revenues minus the non-interest spending. financial sustainability, budget surplus and deficit, international financial institutions. introduction interest in financial sustainability increased in the eighties of the last century after the exacerbation of the debt value suffered by many countries. iraq became one of the countries that inherited a heavy legacy of external indebtedness due to the economic collapse and the cessation of exporting crude oil. then the failure to pay its external obligations, in addition to the large sums that iraq committed as compensation for the wars that iraq fought in the past periods, in return for the deepening of iraq's dependence on oil as a primary source of financing the budget, and then the decline in oil prices creates the need to resort to borrowing, whether internal or external, and this exposes the economy to significant risks as well as burdens debt servicing. the accumulated fiscal deficits and the sharp increase in public debt rates have led to a review of the sustainability of public finances and the government's ability to fulfill its debts without exposure to bankruptcy risks. however, there are multiple means of financing that debt, perhaps the most prominent of which are government bonds funded by the private sector, which in turn leads to crowding out) to find practical solutions to the problem of increasing government fiscal deficits, the situation requires resorting to public debt in general and internal debt in particular, american journal of business management, economics and banking volume 14 july, 2023 p a g e | 30 www.americanjournal.org which requires building a strategy for internal public debt, specifically the establishment of a government bond market in two-time frames. short-term and long-term, the short-term market aims to develop financial tools in the financial market to achieve price stability, while the long-term market is to achieve coordination between fiscal and monetary policies to maintain the continuity of the economy in its correct balancing track. research problem:the research problem stems from the view that the need to resort to public debt in its two parts (internal and external) on an ongoing basis does not achieve financial sustainability in iraq without risks and that the budget constraints cannot exceed public expenditures within the limits of their financing. the importance of the research:-providing a solid theoretical and practical framework for analyzing financial sustainability and the general budget in iraq after 2003. research hypothesis:the study was based on the hypothesis of the study that iraq suffers from high indebtedness and that the public debt in both parts (internal and external) has not led to achieving financial sustainability in the iraqi economy since the year ( 2003 ), and despite the indebtedness, it can bear its burdens and can sustain it. his debt results from the economic resources he possesses that can solve the debt problem if appropriately invested. research objective:-the main objective of the study is: determining the country's ability to achieve financial sustainability through indicators through which the possibility of sustainability can be determined or not in light of the seriousness of iraq's indebtedness. research methodology:the study relied on the analytical approach to financial sustainability and budget surplus and deficit in iraq for the period (2003-2019), relying on the data of the ministry of finance, the central bank, and the ministry of planning in iraq, as well as reports issued by international organizations and institutions. research structure:to validate the hypothesis and reach the research objectives, it was divided into two sections. the first topic dealt with the theoretical framework of financial sustainability. the second topic dealt with the analysis of the deficit and surplus of the general budget and its impact on financial sustainability (2003-2019), while the third topic dealt with a future vision of financial sustainability by the directions of international financial institutions for the period (2019-2024). part one:the concept of financial sustainability it can be defined as the financial situation in which the state can continue spending and revenue policies in the long term without a decrease in financial solvency and without being exposed to the risk of bankruptcy or the inability to fulfill current and future obligations(1). that is, the main objective of fiscal policy is that it is not related to achieving a certain level of the public budget deficit as much as it aims to maintain a sustainable financial situation in light of the objectives of public policies. therefore, maintaining financial sustainability represents the most critical objective among public finance objectives(2). 1 izquierdo and panizza," fiscal sustainability issues for emerging market countries'' , egyptian of economic studies, wp.no, 95, cairo egypt , 2004, p6-7. 2 kamal amin al-wasal, infrastructure and public investments in the arab world between the necessity of development and the dilemma of funding , 1st edition, lebanon beirut, arab center for research and policy research, 2018, p. 155 . american journal of business management, economics and banking volume 14 july, 2023 p a g e | 31 www.americanjournal.org (blanchard)(*) defines financial sustainability as that policy that ensures the stability of the public debtto-gdp ratio. public debt is not a problem as long as it does not negatively affect economic growth rates in the country and the government can employ borrowed funds in profitable projects and investments. a real positive impact on the gross domestic product, which helps to develop the economy and increase production rates as well as work to achieve economic development, even if the debt-togdp ratio is high, but if the borrowed funds are used to cover current expenses such as the salaries of employees and retirees, the public debt is not considered sustainable. as it happens in iraq (3). financial sustainability is also defined as the possibility of achieving a constant ratio between gdp and debt and that the ratio returns to its standard rates after removing external influences and emergency events(4). as for the financial sustainability requirements, they can be explained as follows: a. intergenerational fairness : the issue of financial sustainability always includes questions related to the distribution between generations and the sharing of risks, and it is often formulated as leaving future generations the same options as the current generations. future generations are debts that cannot be met(5). b. solvency financial : it is expressed by (financial ease). solvency expresses the ability of the state to fulfill its financial obligations, as its lack of availability can lead to financial problems in any national economy and, thus, over-reliance on debt, after which the growth of debt accelerates whenever the government tries to finance its interest payments by issuing more debts. this leads to a vicious circle in which increasing amounts of debt are issued to pay higher interest charges. eventually, debt service costs will exceed the government's ability to pay for it and thus become unsustainable. to achieve a way to maintain the financial solvency of the national economy, additional revenue must be generated. sufficient to cover the expected increase in growth-promoting public spending(6). c. stable taxes : tax stability is represented by the government's ability to finance future financial obligations while maintaining tax burdens at their current level or lower, and this is achieved through a balanced budget in the medium term that gives a reasonable degree of stability in the total tax burden, which represents one of the main requirements for financial sustainability(7). d. growth economic: it is a positive increase in specific economic quantities over a relatively long period. although economic growth and the resulting economic development are the outcomes of economic and noneconomic factors, it is an increase in the economic welfare of the population, that is, the number * he is an english economist. in his article "an essay on dynamic theory." in his achievement, he relied on the ideas of the general theory of work keynes. after the fame he gained, the latter's name was linked to the american economist avsi domar (1914), and from there, they called the harrod-domar model or the keynes model of growth. he is also famous for his well-known book entitled "international economics." 3blanchard,o,j,c,suggestun for new set of fiscal indicators,oecd,working paper, no79, 1999, p.4. 4 oecd, “fiscal sustainability” ،in government at a glance, oecd publishing, paris , 2013, p1. 5 torben . m. , fiscal sustainability and fiscal policy targets, economics working papers, department of economic and business economics, aarhus university, 2012, p.2. 6 schick.a, sustainable budget policy: concepts and approaches, oecd journal on budgeting, volume 5, no1, 2006, p.110. 7 schick.a, sustainable budget policy: concepts and approaches, op cit, p112. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 32 www.americanjournal.org of goods and services produced and placed at the disposal of citizens during a specific period at lower costs or with better quality and larger quantities than before(8). that is, financial sustainability is summed up in the idea that governments must manage their financial affairs wisely to ensure the desired targeted growth in the future, and sustainable growth is one of the most important goals of the european union's stability and growth pact, which obliges member states to have a deficit of less than (3%) of gdp and gross debt less of (60%) these limits are based on the argument that growth will not be sustainable if the deficit and debt violate these criteria and for all countries, the long-term financial goal for britain, for example, is to ensure that public finances are sustainable, and contribute to a stable environment that promotes economic growth(9). part two: analysis of the deficit or surplus in the public budget and public debt and its impact on financial sustainability in iraq for the period (2003-2019) the deficit in the general budget is one of the main features of public finance in most countries. the reason for the deficit achieved in some years is the drop in international oil prices, which fell to less than 40 dollars per barrel, while the government estimated the price of a barrel of exported oil at (56) dollars. moreover, the decrease in the actual price of a barrel from the estimated one dollar means a loss of revenues estimated at approximately (1.5) billion dollars, as the iraqi economy suffers from a fundamental problem represented in the failure of public revenues to cover public expenditures, so this led to the emergence of a public budget deficit crisis, and the problem between revenues increases. and expenditures year after year, and as it is known that the iraqi economy is a consumer economy that is unable to meet the needs of citizens, which makes import from abroad the only resort, especially with regard to securing necessary commodities such as foodstuffs and medicines, and thus leads to an increase in the prices of these materials globally, which is reflected in an increase the demand for foreign loans and the increase in public debt to pay the rest of the imports, which leads to the benefit of the producing countries by increasing their exports at the expense of the non-productive economies, including iraq, where the prices of imports were rising at rates more significant than the prices of exports, and this matter led to the depletion of the public revenues of the country, which is limited to oil revenues and the lack of non-oil revenues, and through this indicator it is possible for the iraqi economy to achieve financial sustainability by stopping or reducing external imports and thus not leaving oil revenues, i.e. at least reducing the trade balance deficit by meeting the very necessary needs of society and thus reducing external debts destined for consumption (nonthe product) . table (1) shows that the general budget from (2003-2012) achieved a surplus during this period. the reason for that was the lifting of economic sanctions, which increased oil revenues. in contrast, public revenues witnessed a noticeable decrease in 2009 to reach 55,209,353 million iraqi dinars, with a growth rate negative amounted to (31.2%) and the main reason for the decline was the global financial crisis and the changes that occurred in the prices of crude oil in the global markets as a result of it. annual growth (27.1%) and (10.1%), respectively, but the years (2013-2019) public budgets achieved a deficit due to the drop in oil prices, which led to a decrease in public revenues while government spending remained without an increase. this deficit generates public debts for the country, both internal and external, which makes achieving financial sustainability difficult in the event of non-diversification 8 abdel moneim al-sayed ali, introduction to economics (principles of macroeconomics), part two, al-mustansiriya university, college of administration and economics, baghdad, 1984, p. 344. 9 schick.a, sustainable budget policy: concepts and approaches, op cit, p112 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 33 www.americanjournal.org of revenue sources that limit the noticeable imbalance between expenditures and revenues. as for the years (2017) and (2018), the budget achieved a surplus of (1845840) million dinars and (25696645) ) respectively, due to the increase in oil prices and the decrease in government spending, and the reason for this is the austerity policy pursued by the government, as shown in figure (1) table (1) the surplus and deficit in iraq’s budget and public debt and its growth rate for the period (2003-2019) / million dinars the years total revenue the public (million dinars ) revenue growth rate overhead (million dinars ) public expenditure growth rate deficit or surplus total public debt public debt growth 2003 2,146,346 1,982,548 163,798 136848884 2004 32982739 1436.7 32117491 1520 865248 135555541 0.9 2005 40502890 22.8 26375175 -17.9 14,127,715 111322289 17.9 2006 49055545 21.1 38806679 47.1 10425670 86725020 22.1 2007 54599451 11.3 39031232 0.6 15568218 76965008 11.3 2008 80252182 47.0 59403375 52.2 20848807 59114133 23.2 2009 55209353 -31.2 52567025 -11.5 2642328 61101599 4.3 2010 70178223 27.1 70134200.2 33.4 44022 64,778,036 6.0 2011 108807392 55.0 78757667 12.3 30049726 60282889 6.9 2012 119817224 10.1 105139575 33.5 14,677,648 58083553 3.6 2013 113767395 -5.0 119127556 13.3 5360161 54,163,847 6.7 2014 105386623 -7.4 112192126 -5.8 7863800 59895883 10.6 2015 66470252 -36.9 70417515 -37.2 3927263 84,780,811 41.5 2016 54,409,270 -18.1 67067437 -4.8 12658167 99597195 17.5 2017 77335955 42.1 75490120 12.6 1845840 120832236 21.3 2018 106569834 37.8 80873000 7.1 25696645 90448698 25.1 2019 107566995 0.9 111723523 38 4156528 82918428 8.3 source: the researcher's work based on: central bank of iraq, department of statistics and research, annual statistical releases, for the period (2003-2019). the iraqi ministry of finance, the general budget department and the public debt department, bulletins for separate years for the period (2003-2019). source: from the researcher's work based on table (1). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 34 www.americanjournal.org through the preceding, it is clear that there is a set of risks that affect the sustainability of fiscal policy in iraq, especially with its characteristics, as follows(10): 1. significant vulnerability to shocks: these countries are affected by changes in what happens outside their control, trade rates, capital flows, economic crises, and the consequent changes in economic growth these countries. 2. the fragility of the administrative institution of public finance: this results from the fact that many financial decisions are ill-considered and do not consider the economic conditions and the conditions of the goods and services market, and their lack of credibility prevents the implementation of the previously prepared government program. 3. determinants of deficit financing: the limited capabilities make iraq dependent on borrowing from external sources in addition to short internal loans, and in light of the spread of the socalled dollarization process, i.e., the dominance of the dollar over other internal and external currencies and their high levels, these countries are forced to adjust interest rates, and as a result, the burden of servicing the domestic short-term public debt is increasing. 4. low rates of creditworthiness: most of the financial literature emphasizes the dependence of developing countries on external borrowing, and this coincides with the high risk of burdens of servicing these debts, which depend mainly on exchange rates characterized by continuous volatility and their vulnerability to economic cycles. chapter three: a future vision of financial sustainability in iraq according to the directions of international financial institutions for the period (2019-2024) iraq has received special attention from international institutions because it is a founding member of them and signs cooperation agreements with those institutions to obtain direct loans or help it obtain loans from other international bodies and institutions or to obtain advice and technical support from them. the most prominent of these institutions that issued their reports, especially with their expectations of economic indicators for the coming years, are: the international monetary fund, the world bank, the international rating agency standards & poor’s, and among the most prominent of its expectations regarding our country are as follows: the first requirement: international monetary fund expectations for financial sustainability in the iraqi economy for the period (2015-2024) expectations and possible opportunities on 26/7/2019, the international monetary fund prepared its annual report on the future of the iraqi economy after concluding its consultations on article 4 with iraq, in which it clarified its expectations for economic indicators until 2024. a summary of what was stated therein can be summarized as follows(11): 1. the improvement in the security situation and the recovery of oil prices led to a reduction of vulnerabilities in the short term. the public finances and the current account recorded large surpluses in 2018, estimated at (8%), and (6%) of the gross domestic product, which allowed 10 alvarado ,iquierdo,&panizza, fiscal sustainability in emerging market countries with application to ecuador, working paper serios 511 , inter-american develop bank, 2004,p11. 11 report of the executive board of the international monetary fund, article iv consultation with iraq on 7/19/2019. http://www.imf.org/external/np/sec/misc/qualifiers.htm. http://www.imf.org/external/np/sec/misc/qualifiers.htm%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20%20  american journal of business management, economics and banking volume 14 july, 2023 p a g e | 35 www.americanjournal.org the government to pay part of the domestic debt and the formation of safety margins in the public finances, and the total international reserves amounted to 65 billion dollars. 2. the 2019 budget includes a significant degree of financial easing that would increase weaknesses and the fragility of the financial situation. it is expected that current spending will increase by (27%) annually due to the increase in the public sector wage bill, while revenues will weaken due to the abolition of non-oil taxes. 3. the continued decline in the public financial position and the external position in the medium term, unless changes occur in policies, with the continued decline in reserves to less than adequate levels and the erosion of safety margins in public finances, although the level of public debt will remain within tolerable limits, and therefore financing needs will increase—total public finances. 4. there are expectations that oil prices will witness large fluctuations, reflected in the volume of iraqi oil exports and, thus, in a decrease in oil revenues, which will necessarily lead to a sharper decline in financial reserves or an increase in public debt. 5. the international monetary fund confirmed, based on the expectations of its experts, the possibility of significant fluctuations in global oil prices that will be reflected in its adverse effects on the iraqi economy, indicating the expectations that the global economy will enter a major economic crisis that may push the global economy towards recession as a result of the escalation of the trade war between the united states of america and china, which led to a decline in global economic growth rates and a decline in global trade growth rates, its features became apparent in 2020 and coincided with the outbreak of the corona pandemic in most countries of the world, which paralyzed all joints of the global economy and deepened the economic crisis after taking health precautionary measures and imposing a health curfew that as a result, the movement of land, air and sea transport, which consumes (70%) of the energy in the world, stopped, which led to a decline in benchmark oil prices (brent) in the global markets to less than 30 dollars, which negatively affected the iraqi economy, just like other economies in different parts of the world. dr. mazhar muhammad salih called it surprises and price caveats at low oil prices, which calls for the inevitable economic diversification(12). the most important expectations of the international monetary fund experts for the economic indicators for iraq until 2024 can be seen in table (2) as follows: 1. the expected estimates of the international monetary fund indicated that government expenditures for the iraqi state constituted about (43.1%) of the total gross domestic product in 2020. it is expected to decrease to (40.5%) in 2024, while the percentage of operating expenditures was estimated at (34.7%) in 2020. then it decreased to reach (33.9%) in 2024, so its percentage of total public expenditures reached (80.5% 83.7%) from 2020-2024. 2. the weakness of investment allocations and their continued decline, estimated by the fund’s experts (investment expenditures) at about (8.4%) in 2020, then declining to reach (6.6%) in 2024, and that the percentage of these allocations is not sufficient to finance the reconstruction 12 mazhar muhammad salih, the general budget in iraq a dialogue of opportunities and axes, a research paper published on the website of the iraqi economists network, pp. 1-2, 202 http://www.iraqieconomistis.net american journal of business management, economics and banking volume 14 july, 2023 p a g e | 36 www.americanjournal.org requirements estimated by the world bank at the kuwait conference with (88) billion dollars for the reconstruction of iraq during the ten years from 2018-2028(13). this is in addition to the decline in foreign investments that left iraq and received from their countries or moved to other countries, which amounted to (36.251) billion dollars for the period from 2013-2018, and the exit of (1.191) billion dollars from local investments of the same period, according to the investment report for the year 2019(14). table (2) international monetary fund experts for indicators of the iraqi economy until 2024 (%) the years variable 2020 2021 2022 2023 2024 public expenditures to gdp 43,1 41,2 40,5 40,5 40,5 operating expenses to gross domestic product 34,7 33,6 33,5 33,7 33,9 operating expenses to overheads % 80.5 81.3 82.7 83.2 83.7 investment expenditures to gdp 8,4 7,5 7 6,8 6,6 investment expenditures to overheads % 19.4 18.2 1.7 16.8 16.3 public revenue to gross domestic product 39,6 37,9 36,5 35,5 34,6 oil revenues to gdp 36,3 34,5 33,1 32 31 other non-oil revenues to gdp 3,3 3,4 3,4 3,5 3,5 disability to the gross domestic product -3,5 -3,3 -4,0 5,0 5,9 gdp (billion dollars) 241,5 254,1 267,3 281,1 296,5 government public debt ($ billion) 121,9 128,5 137,5 150,7 167,3 government public debt as a percentage of gdp 50,5 50,6 51,5 53,6 56,4 external public debt (billion dollars) 76,2 77,6 75,8 75,3 73,8 domestic public debt (billion dollars) 45,7 50,9 61,7 75,4 93,5 source: international monetary fund, report of the executive board of the international monetary fund, article iv consultations with iraq on 7/19/2019. http://www.imf.org/external/np/sec/misc/qualifiers.htm 13 abd al-rahman najm al-mashhadani, iraq, the arena of conflict between the removal of forces and the possibility of imposing american sanctions, center for policy making for international and strategic studies, turkey istanbul, 2020, p. 6 14 unctad, world investment report, (2019), p214. http://www.imf.org/external/np/sec/misc/qualifiers.htm  american journal of business management, economics and banking volume 14 july, 2023 p a g e | 37 www.americanjournal.org 3. the general government revenues of the iraqi state were estimated, according to the fund’s report, to be about (39.6%) of the gross domestic product, decreasing to reach (34.6%) in 2024, as oil revenues constitute what represents (90%) of the total public revenues, and this indicates the continued adoption of the budget the public sector depends on oil as its main source, and its preparation is affected by the fluctuations that occur in the global oil markets. 4. the continued decline in public revenues, as well as the continuing increase in the deficit in public budgets, which is expected to rise from (3.5%) in relation to gdp in 2020 to (5.9%) in 2024 indicates that iraq continues to rely on internal and external borrowing to finance this deficit. despite the legislation of the financial management and public debt law no. (6) issued in 2019, which stipulates that it is forbidden to increase the deficit in the public budget to (3%) of the gross domestic product, which means the inability to achieve financial sustainability. 5. an increase in public debt from (121.9) billion dollars in 2020 to (167.3) billion in 2024, both internally and externally, to reach (73.8) billion dollars in 2024, at a time when the report indicates an increase in internal public debt from (45.7) billion dollars in 2020 to (93.5) in 2024. 6. an increase in the ratio of public debt to gdp from (51.4%) in 2020 to (56.4%) in 2024; however, estimates indicated a decrease in the ratio of external government debt to gdp from (31.5%) in 2020 to (31.5%) in 2020 (24.9%) in 2024. 7. the persistence of expectations of a rise in the public debt-to-gdp ratio that exceeds (50%) means the inability to achieve the sustainability of the public debt as determined by the maastricht agreement, which specified the debt-to-gdp ratio at the market price of developing countries, provided that it does not exceed (60%), as well as the ability and potential to achieve financial sustainability for the coming years, noting that this percentage may increase or decrease from one year to another and from one country to another. 8. in a previous study of the fund presented by the fund’s vice president at the kuwait conference in february 2018, in which he warned the iraqi government against continuing to borrow, despite the existence of a funding gap estimated at (33) billion dollars for the period 2017-2023 and the debt remaining constant, debt services will rise from (3) billion in 2017 to (16) billion dollars in 2023, and if the government continues to borrow, the ratio of public debt to gdp will exceed (58%) and that public debt services will reach (33) billion dollars in 2023 and there will be a financing gap it exceeds (87) billion dollars, which means that the government will not be able to implement its development or reconstruction programs and that the oil revenues will go the bulk of them to paying debt installments and interest(15). the second requirement: expectations of the international rating agency standards & poor's for the iraqi economy (2019-2023) international credit rating institutions are institutions specialized in collecting appropriate information and analyzing them in order to issue them in the form of periodic reports that express what is called the creditworthiness of a country, which means the amount of confidence that the bank gives to customers in exchange for disposing of its capital during a specific period, with opportunities to obtain the necessary guarantees for the payment of dues, and the main objective of the credit rating is to classify 15 josz. ch, iraq macroeconomic framework overview, deputy division chief, imf, invest in iraq conference,2018, p4. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 38 www.americanjournal.org and classify debt instruments in this country based on its ability to fulfill its obligations that affect negatively or positively through its ability to borrow(16). as standard and poor's agency issued its annual credit rating for the iraqi economy at b-/b on 3/26/2020, as the ministry of finance announced on thursday, 9/30/2021, iraq continues to maintain its credit rating with a stable outlook. until 2023, due to economic reforms, and according to a report submitted by standard & poor's on credit rating, the iraqi economy continues to maintain its credit rating due to the ongoing economic reforms of fiscal policy in iraq. he added, "the new classification came to reflect the continuation of maintaining the level of foreign currency reserves in a manner that exceeds the service of external public debt and the fulfillment of other external financial obligations as a result of the rise in crude oil prices and their recovery in the third and fourth quarters of the current year." it also emphasized the possibility of improving the credit rating of iraq in the event of a high rate of economic growth in iraq, diversifying the state's oil and non-oil revenues, increasing the per capita share of national income, and continuing the procedures for reforming the financial and economic policy as mentioned in the economic reform paper (the white paper) that would strengthen the policy. the financial and economic of the iraqi government(17). table (3) includes the most important forecasts for the economic indicators of iraq. among the most prominent observations made in the report are(18): 1. the downward shock of oil prices will triple the fiscal deficit in iraq and push the current account balance into a deficit during 2023. 2. iraq will remain the fourth largest oil producer in the world and challenge the lowest-cost producers, and this would ensure that the trade situation for goods in the country remains stable despite the terms of the trade shock. 3. reducing spending and assets from the sizeable fiscal surplus of 2018 is expected to mitigate the overall impact of the shock partially. 4. the rating can be reduced if the government increases spending beyond the expectations of the experts of the standard & poor's rating agency, if it leads to a decrease in foreign currency reserves or a sharp rise in its net debt and service costs, or if oil revenues decrease. the government is unable to reduce spending and implement countermeasures. 5. the affirmation of the assessment for iraq (b-) depends mainly on the ability of the government to reduce spending while the economy continues to depend on oil. 6. obtaining bilateral or multilateral external funding to finance projects is expected to take more work. 7. given the end of the international monetary fund program with iraq and the lack of approved budget support in the year (2019-2020), therefore, the government will be forced to finance the deficit in 2020 by using the remaining financial assets accumulated from the 2018 budget surplus and relying on short-term domestic financing (permits the treasury purchased by commercial 16 sarmad, a beautiful planet, an introduction to financial institutions management, theories, and applications, 1st edition, academic publishing house, amman jordan, 2018, p. 236. 17 the white paper, final report of the emergency cell, previous source, pp. 40-41-42. 18 shaima fares hassan, the increase in public debt and its impact on reducing financial sustainability in iraq from 20042018, previous source, pp. 109-110. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 39 www.americanjournal.org banks and securities sold to the retirement fund), so it is expected that the average net government debt of liquid assets will reach (64%) during the expected period 2020-2023. 8. the public debt in iraq at the end of 2022 reached (94.936) trillion dinars, distributed between (24.431) trillion dinars of external debt (excluding the stalled gulf debt) and (70.505) trillion dinars of internal debt. it is expected that the principal payments will increase to pay off external debts for the period 20232020 until the date of repayment of the debts of the international monetary fund and eurobonds. table (3) the most important economic and financial indicators according to the expectations of the international rating corporation standard & poor's(%) the years pointer 2019 2020 2021 2022 2023 gdp (billion dollars) 210 172 202 218 228 exports/gdp % 81.1 66.6 69.6 72.7 73 net fdi/gdp % 2.0 2.0 1.0 1.0 1.0 total external financing needs % of usable reserves 73.8 78.0 123.8 114.7 111.7 revenue to gdp % 42.2 31.3 38.1 39.6 39.0 expenditures/gdp ratio 47.4 47.1 44.6 44.6 44.0 public debt/gdp ratio % 54.4 76.1 71.4 71.1 73.2 interest/revenue ratio % 4.1 7.0 5.6 5.5 5.8 public debt/revenue ratio % 129 244.2 178.3 179.6 188 net debt/gdp ratio % 40.7 65.4 62.1 62.6 65.0 source: https://www.standardandpoors.com/en_us/web/ shaima faris hassan, previous source, p. 110. 9. there is a possibility that the ratio of revenues to gdp will drop to less than (40%); at the same time, the ratio of public expenditures to gdp will remain between 47% in 2020 and 44% in 2023. 10. the ratio of public debt to public revenues will increase (244%) in 2020 to decrease to (188%) in 2023. as for the internal and external public debt installments (installment + interest) in the 2023 budget, it is equal to 18.962 trillion dinars. 11. the ratio of net debt to gdp will remain more than average rates, as it will rise from (40.7%) in 2019 to reach (65%) in 2020, then decrease to (62.1%) in 2021, to rise again to reach (4.65%). ) in the year 2023, the total gross domestic product, which is higher than the natural rates, which are supposed not to exceed (40%) for developing countries(19). 12. the data of the international rating agency standards & poor’s relies on official data and statistics issued by the international monetary fund in cooperation with the central bank of iraq (economic indicators), as well as the iraqi ministry of finance (financial 19 translated pages taken from a group of electronic links belonging to the website: https://www.standardandpoors.com/en_us/web/ https://www.standardandpoors.com/en_us/web/ https://www.standardandpoors.com/en_us/web/ american journal of business management, economics and banking volume 14 july, 2023 p a g e | 40 www.americanjournal.org indicators), the central bureau of statistics, and the bank for international settlements (external indicators). the third requirement: world bank expectations for the iraqi economy for the period (20192022) the world bank issued a special report on iraq, "navigating the perfect storm," focusing on laying the foundation for a new economy in iraq, digital transformation. 2017), in which he shows the fragility of the economic situation and the difficulty and seriousness of the financial crisis facing the iraqi government due to the collapse of global oil prices and the worsening of the health situation as a result of the outbreak of the coronavirus and the inability of the health system in iraq to contain the virus and limit its spread, significantly after infections exceeded the barrier of (2500). one daily infection after mid-july due to the lack of sufficient operational and financial capabilities to contain and control it, in addition to the continuation of political and social unrest and the spread of corruption in most parts of the state. saroj kumar jha, regional director of the levant department at the world bank, says: "controlling public finances and economic diversification through increased private sector participation is extremely important to reduce iraq's vulnerability to external shocks(20). among the most important things mentioned in the world bank report on the financial and economic situation of iraq, which shows part of it is table (4), which identifies the most critical risks threatening the iraqi economy in the future(21): 1. the package of stimulus measures taken by the government of former prime minister (adel abdul-mahdi) at the end of 2019 to address the problem of unemployment led to a reduction in the 2018 budget surplus from (11.2%) of gdp 2018 to (3%) of gdp. in 2019. 2. the total government spending tended to finance operating expenses at the expense of reducing investment spending allocated to financing development programs and programs to rebuild the country's infrastructure and reconstruct the liberated areas. 3. despite the slight increase in investment spending, which amounted to (5%), the implementation rate was at most (45%) of the amounts included in the general budget. table (4) economic and financial indicators of the iraqi economy, according to the expectations of the world bank for the period (2019-2022) the years variable 2019 2020 2021 2022 gdp (billion dollars) 234,1 171,3 194,3 210,9 government revenues and grants as a percentage of gdp % 38.9 22.1 24.5 25.7 oil revenues as a share of gdp % 35.9 18.2 20.8 22.7 non-oil revenues as a % of gdp 3.0 3.9 3.7 3.5 expenditure as a share of gdp % 37.6 51.8 45.1 42.7 current spending as a % of gdp 28.8 45.3 39.4 37.4 20 https://www.albankaldawli.org/ 21 world bank, reconstruction, recovery.e, and cohesion.f.s, “iraq economic monitor, navigating the perfect storm (redux” world bank grup.p xi,xii,2020, 16,17. https://www.albankaldawli.org/ american journal of business management, economics and banking volume 14 july, 2023 p a g e | 41 www.americanjournal.org investment spending as a % of gdp 8.8 6.5 5.7 5.3 oil investments as a % of gdp 6,9 5,3 4,6 4,3 non-oil investments as a share of gdp % 2,0 1,2 1,1 1,0 total government public debt ($ billion) 104.4 139.0 163.9 184.3 external public debt (billion dollars) 54.0 n/a n/a n/a domestic public debt (billion dollars) 50.4 n/a n/a n/a total government debt to gdp % 44.6 81.2 84.4 87.4 oil production (mbi) 4,83 4,03 4,02 4,44 oil exports (mbi) 3,54 2,84 27,8 3,03 the expected price of a barrel of oil 61,1 30,0 39,8 42,3 total cash reserves (billion dollars) 67,9 33,9 13,2 3,6 duration of covering reserves for imports (month) 10,1 6,0 2,3 0,7 source: the table is from the researcher’s work, based on: world bank, reconstruction, recovery.e, and cohesion.f.s, “iraq economic monitor, navigating the perfect storm (redux)” world bank grup, 2020,.p, 16,17. 4. investments in the non-oil sectors amounted to only (18%) of the total investment allocations, which mostly tended to finance investments in the oil sector because they are sovereign expenditures that must be paid to the oil companies operating in the oil licensing rounds, which negatively affected the services provided that were characterized with its negativity, which is represented by the interruption of electricity, the scarcity of potable water, the increase in urban areas that are not served by sewage networks, in addition to the decline in the levels of health and education services provided, the halt of the reconstruction program, and the increasing number of people covered by social care. 5. the report indicates that the prospects for iraq involve significant challenges, the most important of which is the collapse of global oil prices and the disruption of production and supply chains at the global level as a result of the outbreak of the coronavirus, which will cause significant damage to the iraqi economy. 6. securing budget financing will be a significant challenge in light of the absence of a financial control plan and the deterioration of financial conditions in addition to debt amortization, especially the extension of local treasury bills contracts and the exacerbation of the ongoing debt movement. it must be noted that iraq's total financing needs may reach $67 billion. us (more than 39% of gdp) in 2020 and increased in 2022. 7. the failure to take deliberate measures to control public finances and spending makes it expected that the general budget deficit will rise at the end of 2020 to (54) billion us dollars 2020, equivalent to (19%) of the gross domestic product, assuming the average price of iraqi oil. it is sold within the limits of (30) dollars per barrel. however, if salaries and wages continue to be paid according to their current rates and without resorting to austerity measures, the deficit rate is expected to rise to (29%) of the gross domestic product because this requires that oil prices be at least ( 58) dollars to cover these expenses. 8. iraq could face a persistent deficit in the current account in 2020, mainly driven by low oil prices and stable imports. this deficit is expected to be financed using the reserves of the central bank of iraq and commercial banks such as al-rafidain, al-rasheed, and the state-owned iraqi american journal of business management, economics and banking volume 14 july, 2023 p a g e | 42 www.americanjournal.org trade, which makes it more vulnerable at the time. it also increases the exposure of the iraqi economy to external shocks during the expected period, as these reserves decrease to less than three months of imports by 2022. however, iraq can increase oil production and not adhere to the new opec + agreement to mitigate the widening deficit or follow the approach of financial distillation (authorization) to manage the public budget and spending(22). 9. iraqi oil production is expected to decline from 4.8 million barrels per day in 2019 to 4 million in 2020. as a result, there are expectations that the oil sector will contract by 13% in 2020 amid pessimistic expectations of the global oil markets. 10. the country's significant financing needs are expected to continue in 2021 and 2022, which raises questions about sustainability and current fiscal policy directions. we conclude from the preceding that governments seek to achieve financial sustainability to ensure the conduct of business and not to expose the country to a state of financial failure, and the accumulation of debt is only the outcome of the government deficit that has been going on for years (especially the structural deficit). in order to avoid the risk of the indebtedness problem and ensure the achievement of financial sustainability, economic policymakers must go towards rebuilding the economic structure and preparing for an economy without oil by developing a strategy of economic diversification, developing local production, and controlling borders by following an effective customs system and import substitution policies in the first phase of implementing these reforms in preparation for the transition after that to the stage of pioneering industries in which iraq has a comparative advantage such as the petrochemical industry and construction industries, in addition to the food industries because iraq is an agricultural and productive country. conclusions 1. the researcher's findings proved that the public debt in iraq did not lead to achieving financial sustainability in the economy because most of the debts were directed to finance the annual budget deficit, especially in the years when global oil prices fell and the years of fighting terrorism that require more spending to finance war operations. 2. the results of the predictive study, whether prepared by the three international institutions (the international monetary fund, the world bank, and the international rating agency standards & poor's), have proven that the deficit in public budgets will continue for the next eight years and that this deficit will continue to be financed through internal borrowing from national financial and banking institutions for the most part. from external borrowing, which is mostly going to finance salaries and wages expenses. 3. international institutions were interested in preparing future studies of the iraqi economy and demonstrating the possibility of achieving financial sustainability according to economic indicators. they found that iraq will be exposed to major economic crises due to its increasing dependence on oil as a primary source for financing the general budget and gross domestic 22 mazhar muhammad salih, possibilities of the economic conditions in iraq under the global recession an early vision, a research paper published on the website of the iraqi economists network on 4/30/2020, pg. 4. www.iraieconomistis.net/ar/ http://www.iraieconomistis.net/ar/ american journal of business management, economics and banking volume 14 july, 2023 p a g e | 43 www.americanjournal.org product. the government will resort to borrowing to finance the deficit in public revenues. the international monetary fund and the world bank advised that the iraqi government should resort to internal borrowing, which is expected to rise to more than (93.5) trillion dinars in 2024, offset by a decrease in the reserves of the central bank of iraq to (3.5) billion dollars. 4. financial reform policies are the most important factors of economic stability that lead to economic growth. structural reforms are usually carried out parallel to financial and economic stability policies. recommendations 1. the need to set safety limits ratios, especially for the iraqi economy, that measure the state's ability to pay, whether shortor long-term. 2. in order to achieve the conditions of financial sustainability, the sources of financing the general budget must be diversified. factual mature tax bases must be available in the economy that reflects the existence of a real mature internal activity that possesses the conditions for its sustainability from within the movement of the internal economy in order to be able to generate tax revenues that are highly stable and unaffected. oil market fluctuations are very much affected, and one of the conditions for enhancing financial sustainability is the existence of a complementary relationship between revenues and long-term public expenditures. 3. building a pattern of budgeting programs and performance to help achieve financial sustainability, because it is considered the most appropriate for the developments of the current financial situation in iraq, and then oblige the state ministries to send programs in each draft planned budget that they submit for the following year and evaluate their performance by the concerned authorities. 4. they are paying attention to the study of reform issues that include financial programming models due to their importance and the limitations of arab studies in them. sources 1. sarmad kawkab jameel, an introduction to financial institutions management, theories, and applications, 1st edition, academic publishing house, amman jordan, 2018. 2. abdul moneim al-sayed ali, introduction to economics (principles of macroeconomics), part two, al-mustansiriya university, college of administration and economics, baghdad, 1984. 3. kamal amin al-wasal, infrastructure and public investments in the arab world between the necessity of development and the dilemma of funding, 1st edition, lebanon beirut, arab center for research and policy research, 2018. 4. shaima fares hassan, the increase in public debt and its impact on reducing financial sustainability in iraq for 2004-2018, unpublished master thesis, college of administration and economics, iraqi university, 2020. 5. abd al-rahman najm al-mashhadani, iraq, the conflict arena between removing the forces and the possibility of imposing american sanctions, center for policy making for international and strategic studies, turkey istanbul, 2020, p.6. 6. the white paper, final report of the emergency cell for financial reform, october 2020. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 44 www.americanjournal.org 7. the iraqi ministry of finance, the general budget department, and the public debt department, bulletins for different years (2003-2019). 8. unctad, world investment report, (2019). 9. the central bank of iraq, department of statistics and research, annual statistical bulletins, for the period (2003-2019). 10. mazhar muhammad salih, the potential for economic conditions in iraq under global recession an early vision, a research paper published on the website of the iraqi economists network on 4/30/2020. www.iraieconomistis.net/ar/ 11. https://www.albankaldawli.org/ 12. translated pages are taken from a group of electronic links belonging to the website: https://www.standardandpoors.com/en_us/web/ 13. international monetary fund, report of the executive board of the international monetary fund, article iv consultations with iraq on 7/19/2019, http://www.imf.org/external/np/sec/misc/qualifiers.htm 14. mazhar muhammad salih, the general budget in iraq a dialogue of opportunities and themes, a research paper published on the website of the iraqi economists network, 2021 http://www.iraqieconomistis.net 15. world bank, reconstruction, recovery.e, and cohesion.f.s, “iraq economic monitor, navigating the perfect storm (redux)” world bank group, 2020 16. world bank, reconstruction, recovery.e, and cohesion.f.s, “iraq economic monitor, navigating the perfect storm (redux” world bank grup.p xi,xii,2020 17. josz. ch, iraq macroeconomic framework overview, deputy division chief, imf, invest in iraq conference,2018 18. alvarado ,iquierdo,&panizza, fiscal sustainability in emerging market countries with application to ecuador, working paper serios 511 , inter-american develop bank, 2004 19. schick.a, sustainable budget policy: concepts and approaches, oecd journal on budgeting, volume 5, no1, 2006 20. oecd journal on budgeting, volume 5, no1,2006. 21. torben. m. , fiscal sustainability and fiscal policy targets, economics working papers, department of economic and business economic, aarhus university, 2012. 22. blanchard,o,j,c,suggestun for new set of fiscal indicators, oecd, working paper, no79, 1999, p.4. 23. oecd, “fiscal sustainability”، in government at a glance, oecd publishing, paris , 2013 24. izquierdo and panizza, "fiscal sustainability issues for emerging market countries'' , egyptian of economic studies, wp.no, 95, cairo egypt , 2004 http://www.iraieconomistis.net/ar/ http://www.iraqieconomistis.net/ american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 110 www.americanjournal.org ways to increase the efficiency of agricultural production 1. narinbayeva gulnora karimovna, 2. zhalilov shokhjakhon kholbozor ogli, 3. nurmukhammadov islombek oybek ogli e-mail: shoxjahon.jalilov@mail.ru, tel: +998942919339 1.independent researcher, tashkent state agrarian university, uzbekistan, 2 independent researcher, tashkent state agrarian university, uzbekistan 3 independent researcher, tashkent state agrarian university, uzbekistan a b s t r a c t k e y w o r d s the article discusses ways to improve the efficiency of agricultural production. in uzbekistan, horticulture is one of the leading branches of agriculture and occupies a special place in providing the population with food. introduction uzbekistan has significant agricultural potential. the agrarian reform carried out in the country had a serious impact on the development of the industry: a diversified agriculture was formed, the sectoral structure was transformed, the size and forms of state support for agricultural producers changed. thanks to the ongoing reforms, sustainable growth of the economy of uzbekistan, including agriculture, has been achieved. for the growth of production volumes, a legislative framework has been created, which is being improved based on the realities of life. at present, agriculture works for a large number of consumers and satisfies their needs. therefore, agricultural enterprises should not only harvest to the maximum extent, but also profitably sell it. in this regard, the manufacturer needs to solve the problems of managing, marketing products, and should also organize the sale of products at the most optimal price in order to get high revenue. in order to carry out large sales, it is necessary to have a good harvest of products with high quality, which will contribute to the presence of demand in the food market. but at the same time, one should also take into account the factor of demand for agricultural products, which also plays an important role in the implementation. the problem of efficiency is the eternal problem of mankind. it flows from the very essence of human existence. the efficiency of agricultural production is the most important quality characteristic at all levels of management. under the economic efficiency of production is understood the degree of use of production potential, which is revealed by the ratio of the results and costs of social production. the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 111 www.americanjournal.org higher the result at the same cost, the faster it grows per unit cost of socially necessary labor, or the lower the cost per unit of useful effect, the higher the production efficiency. in order to increase the efficiency of production and sales of agricultural products, it is necessary to reduce production costs, improve technology, introduce new varieties of crops, improve product quality and production volume, which will increase the profit of the enterprise and its profitability. 2. literature review: a number of scientific papers by andreychuk v.g., m.k. bazarova, burobkina i.n., vasilenko yu., gryadova s.i., zelepukhina a., zinchenko a.p., kuznetsova v.i., nikiforova p.v., pastukhova a.k., saifulina r.c., svobodina v a., sergeeva s.s., surkova i.m., chebotareva a.a., shaikina v.v., sheremet a.d., shuklina z.n., khamrokulov r.kh., yusupov yu.b., khakimov r. et al. . 3. materials and methods: one of the most urgent problems of accelerating the development of agriculture in modern conditions is to increase the efficiency of the industry. numerous studies on the problem of production efficiency, and in particular in agriculture, convincingly indicate that, due to the different intended use of its components, this category is very complex. it should reflect the effectiveness of diverse human activities in the process of production of material and spiritual goods1. production efficiency is a complex economic category that reflects a complex of natural, economic, scientific, technical and social conditions for the functioning of the productive forces and production relations. production efficiency is an economic category that reflects the essence of the process of expanded reproduction. it is necessary to distinguish between the concepts of effect and economic efficiency. effect means the result that leaves behind some phenomenon, process, event. in relation to the economic sphere of human activity, the word “effect” should be understood as the result of his work and the result of material, monetary costs. the effect is the result of activities carried out in agriculture. so, the effect of the use of fertilizers is expressed in the form of an increase in yield, but this does not indicate the profitability of the use of fertilizers. profitability can only be judged on the basis of a comparison of the effect obtained with the costs of achieving it. consequently, not the effect, but economic efficiency characterizes the profitability of using fertilizers. economic efficiency the degree of realization of economic interests, is determined by comparing the effect (result) obtained with the resources or costs used. the production of agricultural products is the main function of agriculture and its ____________________________________________________________________________ 1nechaev, v. i. reserves for increasing grain production and improving its efficiency: a regional aspect / v. i. nechaev // ed. academician of the russian academy of agricultural sciences i. t. trubilin. moscow: agri press, 2002. 284 p. primary links enterprises. in the production process, production resources are used land, labor, fixed and circulating assets, and the result is a product with its consumer properties. quantitatively, the economic efficiency of production can be expressed in different ways. in some cases, it manifests itself in the growth of production volumes with unchanged resources and costs, in american journal of business management, economics and banking volume 11 april, 2023 p a g e | 112 www.americanjournal.org others in a decrease in production costs for the same amount of production, and thirdly in both an increase in production volumes and a reduction in production costs. at present, the position is widespread, according to which, for a deeper study of the economic category of efficiency, it is divided into several types, which together make up a single whole. as a result of the implementation of comprehensive measures aimed at the structural transformation and diversification of the industry, as well as the rational use of resources, uzbekistan managed to maintain the growth trend of agricultural production at an average level of 6.8% over the period 20162018. and 6.8% in 2019-2021. (table 2.1). table 2.1 dynamics of gdp and agriculture growth in the republic of uzbekistan in % to january december of the previous year2 indicators 2016 year 2017 year 2018 year 2019 year 2020 year 2021 year average growth for 2016-2021 yy. gdp growth 108,3 108,2 108,0 108,1 108,0 107,8 108,1 growth rates of agricultural production 106,6 107,2 106,8 106,9 106,8 106,6 106,8 growth rates of crop production 105,6 107,4 106,4 106,9 106,7 106,2 106,5 growth rates of livestock production 107,9 107,1 107,4 107,0 106,8 107,1 107,2 according to the state committee of the republic of uzbekistan on statistics, the total volume of agricultural production in 2021 amounted to 48,087.5 billion soums, or 6.6% more than the same period in 2020. thanks to selfless work and the introduction of modern agricultural technologies, it was possible to raise the khirman of the republic to more than 3 million 300 thousand tons of raw cotton and get a record harvest of cereal crops in the history of agriculture in uzbekistan 8 million 263 thousand tons. in 2021, 11272.5 thousand tons of vegetables were grown (145.1% compared to __________________________________________________________________ 2agriculture of uzbekistan. statistical collection. t .: state committee of the republic of uzbekistan on statistics, 2016, 2020, 2021; http://www.finance.uz/; http://www.stat.uz 2017), 2958.3 thousand tons of potatoes (143.8%), 2045.2 thousand tons of melons (144.2%), 3042.7 thousand tons of fruits and berries (148.2%) and 1735.3 thousand tons of grapes (143.9%) (table 2.2). the most important direction of sustainable and effective development of agriculture is its transfer to intensive farming methods through the introduction of modern agricultural technologies and equipping with high-performance agricultural machinery. table 2.2 production of crop products in the republic of uzbekistan thousand tons3 indicators 2017 y. 2018 y. 2019 y. 2020 y. 2021 y. attitude 2021 y. 2017 y., % cereals 7519,5 7807,8 8050,0 8173,5 8263,8 109,9 raw cotton 3460,1 3361,2 3400,0 3361,3 3300 95,4 potato 2057,1 2250,4 2452,4 2696,9 2958,3 143,8 vegetables 7767,4 8518,4 9286,7 10129,3 11272,5 145,1 food melons 1418,4 1558,3 1696,1 1853,6 2045,2 144,2 fruits and berries 2052,8 2261,1 2490,6 2746,1 3042,7 148,2 grape 1206,0 1322,1 1441,2 1579,3 1735,3 143,9 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 113 www.americanjournal.org to this end, the entire system of agricultural engineering was radically reorganized, the holding company uzagroprommashholding was formed, and enterprises in the industry were optimized and specialized in the production of specific types of agricultural machinery and mechanization in demand. on the optimized areas of the tashkent tractor plant, a new enterprise was established tashkent plant of agricultural machinery llc, which focuses on the production of new models of tractors, trailers and cotton harvesters. the consistent implementation of measures to further increase the potential of the livestock industry, as well as the systemic state support provided, contributed to the growth in the number of livestock and the saturation of the domestic consumer market with livestock products. (table 2.3). in general, the livestock sector of agriculture was characterized by the following results: as of january 1, 2021, the number of cattle reached 12.2 million heads (an increase of 20% compared to 2017). _______________ 3agriculture of uzbekistan. statistical collection. t .: state committee of the republic of uzbekistan on statistics, 2021; table 2.3 growth in livestock production and livestock in the republic of uzbekistan4 indicators 2017 y. 2018 y. 2019 y. 2020 y. 2021 y. attitude 2021 y. 2017 y., % meat in live weight, thousand tons 1672,9 1787,8 1906,5 2033,4 2171,8 129,8 milk, thousand tons 7310,9 7885,5 8432,8 9027,8 9703,3 132,7 egg, million pieces 3873,7 4388,1 4950,0 5535,4 6111,7 157,8 cattle, thousand tons 10141,3 10607,3 10994,6 11641,3 12165,3 120,0 sheep and goats, thousand heads 17128,8 17717,6 18447,4 19118,8 19749,2 115,3 bird, thousand heads 47485,8 52363,2 56195,0 61349,2 65758,9 138,5 the number of sheep and goats amounted to 19.7 million heads (growth by 15.3%), birds 65.8 million heads (by 38.5%); as a result of the implementation of measures to increase the productivity of agricultural production in 2021, the volume of meat production increased by 29.8%, milk by 32.7%, eggs by 57.8%; the share of dekhkan farms in the total number of cattle was 94.1%, cows 94.6%, sheep and goats 83.7%, birds 64.1% (2015). high growth rates of agriculture were in andijan (174.4%), surkhandarya (167.4%) and bukhara (160%) regions (table 2.4). tashkent (12.6% in january december 2017 and 126% in january december 2021), samarkand (13.2% and 11.8%) and andijan (9.6%) have a high share in the total volume of agricultural production. % and 10.8%) areas. an important step in the reforms was the diversification of the sectoral orientation of agriculture. today, our state exports more than 180 types of fresh and processed fruits and vegetables. grown fruits and vegetables today can be found in the markets not only of neighboring countries, but also in norway, thailand, indonesia, the usa, japan, mongolia, saudi arabia, slovakia and even distant american journal of business management, economics and banking volume 11 april, 2023 p a g e | 114 www.americanjournal.org brazil. in general, more than 120 countries of the world have the opportunity to enjoy the excellent taste of uzbek fruits and vegetables. as you know, the development of the agro-industrial complex depends on the rational use of not only land, but also water resources, the reserves of which, unfortunately, are declining all over the world, while the population of the planet is growing. with this in mind, independent uzbekistan has carried out radical changes in the water sector, aimed at improving the ameliorative condition of irrigated lands, ____________________________________________________________________ 4agriculture of uzbekistan. statistical collection. t .: state committee of the republic of uzbekistan on statistics, 2021; http://www.finance.uz/; http://www.stat.uz; http://finansist.uz/agriculturedevelopment-uzbekistan-2021 ensuring the rational and careful use of limited water resources, and increasing land fertility. this, in particular, is facilitated by the widespread introduction of the principles of integrated water resources management, the involvement of modern technologies in the industry, automated control systems and water distribution management. the state pays great attention to ensuring the safety of channels, their modernization, technical and technological renewal. at the expense of funds from various sources, more than 5,000 kilometers of canals, about 100,000 kilometers of irrigation and flume networks, 10,000 hydraulic structures throughout the country are annually repaired. this helps to increase the efficiency of water resources management, improve their supply to consumers, and reduce losses in irrigation networks. the priority areas for sustainable development of agriculture are: deepening structural reforms in agriculture and diversification of agricultural production; accelerating the processes of modernization, technical and technological renewal of agriculture, infrastructure facilities and agricultural processing industries; improvement of mechanisms for efficient use of land and water resources in agriculture; development and improvement of the infrastructure of the agro-food market; taking measures to liberalize agricultural policy and strengthen the protection of the rights of private agricultural producers, in order to increase the financial sustainability of farms. the production of agricultural products is the main function of agriculture and its primary links enterprises. in the production process, production resources are used land, labor, fixed and circulating assets, and the result is a product with its consumer properties. the implementation of these measures together will make it possible to increase crop yields and livestock productivity, and ensure the accelerated development of processing industries in rural areas. this will improve the food security of the population, saturate the domestic market and increase the export potential of the agricultural sector, which will lead to an increase in employment and incomes for a significant part of the rural population. the implementation of measures in accordance with the above priorities will create the necessary ground for ensuring stable development of the economy, strengthening the country's food security, meeting the needs of the population in food and consumer goods to the fullest extent, and, ultimately, will lead to an increase in the welfare and improvement of living conditions of the population. in the economic activity of an organization, reserves are understood as unused production opportunities (lost profits). any, even a fairly high, level of production hides certain reserves for increasing its efficiency. reserves can be identified by their classification according to areas of american journal of business management, economics and banking volume 11 april, 2023 p a g e | 115 www.americanjournal.org activity, system analysis by establishing cause-and-effect relationships that determine production and economic indicators. from the point of view of practical significance, the classification of reserves allows: detail the assessment of the state of production in the areas of activity of the organization; determine the market position of the organization in the internal and external spheres, taking into account industry affiliation and the level of competition in the industry5; identify reserves for production growth and cost reduction, including the possibility of innovative development6; assess the nature and extent of the impact of reserves on the sources of their occurrence on the results of operations; summarize the reserves by the terms of possible practical use (current, medium-term, prospective); establish ways to use reserves. 4.conclusion: thus, when assessing the efficiency of agricultural production, it is advisable to single them out in separate positions: • land resources, expressed by the area of agricultural land; • labor resources, expressed by the average annual number of employees, hours worked and payroll fund; • fixed production assets, expressed by their average annual cost and depreciation charges; • material resources, expressed by the average annual cost of working capital, stocks of working capital, material production costs. the priority areas for the formation of an effective system of state support and sustainable development of the agricultural sector are: development and implementation of a strategy for innovative renewal of the ________________________________________ 5vorozheykina t.m. influence of the state of the regional food market on the organization of the relationship of its participants // economics of agricultural and processing enterprises. 2008. no. 8. s. 70-72. 6ilyenkova n.d. risk of non-demand for products: analysis of the impact of material resources // economics and commerce. 1996. no. 1. s. 141-156. reproduction process in the agricultural sector and, on this basis, ensuring the competitiveness of strategic goods grain, fruits, vegetables, fruits, potatoes, meat, milk and those economic structures and regions that will ensure the development of the agro-food sector of the economy; development and implementation of agricultural production based on the maximum use of the potential for sustainability of territorial biosystems (naturally formed sets of plants and animals) and natural and climatic conditions, i.e. stimulation of the system of intensification of agricultural production in uzbekistan and its regions; promoting the inclusion of agricultural entrepreneurial structures in the system of market relations using economic forms, methods and levers of state regulation to focus them on the production of competitive goods and achieve sustainable competitive advantages in the national and international food markets; american journal of business management, economics and banking volume 11 april, 2023 p a g e | 116 www.americanjournal.org creation of conditions for sustainable material and technical support of structures focused on adaptation to the natural and climatic potential and market relations through innovative updating of its technical base. list of used literature 1. zolotarev a. a., ovchinnikova e. a. factors of increasing the efficiency of intensification in crop production agrarian science. 2008. -№12. s. 2-3. 2. ivanov yu.n. "economic statistics". moscow, 2010. 3. kovalenko n.ya., agirbov yu.i., serova n.a. etc. agricultural economics / textbook m; yurkniga, 2009. 4.economy of branches of the agro-industrial complex: textbook / i.a. minakov, m.i. kulikov, o.v. sokolov. m.: koloss, 2008. p. 273. 5. ergashev e. i. modernization of agricultural sectors // young scientist. 2015.no. 7. pp. 520523 6. n.s. dexkanova, sh.x. jalilov, development of multi-profile farms in uzbekistan. bulletin of modern science. moscow, 2016. 7. g.k. narinbaeva, sh.x. jalilov, z.t. sidikov. the current state of fruit and vegetable growing development in the republic of uzbekistan. asian journal of research in business economics and management may, 2022. 8. g.k. narinbaeva, sh.x. jalilov, m.u.mirzaev, d.z.khaitbaeva, the role of farmers in the economy and prospects for their development in uzbekistan. american journal of interdisciplinary research and development, june, 2022. 9. z.t. sidikov, g.k. narinbaeva, sh.x. jalilov, organizational-economic possibilities of increase of employment of rural population in uzbekistan. world economics & finance bulletin (wefb) january, 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 118 www.americanjournal.org small and medium-sized businesses (smes) in asian nations can benefit from fintech's efficient solutions musabekov sherali nazarali o’g’li student of kokand university sheralimusabekov@gmail.com a b s t r a c t k e y w o r d s the same qualities of many platforms offer excellent solutions for small and medium-sized businesses as fintech continues to expand. this study investigates if fintech provides practical business tools for smes in particular asian nations. indonesia, malaysia, philippines, singapore, and thailand are the asian nations included by the research. the study divided the fintech-sme nexus into five variables using factor analysis. surveys and interview questionnaires were used to get the opinions of 300 sme owners. according to our research, the covid-19 new fintech and smes "collisions" (our name for new use) are the key drivers of fintech development and smes' resilience. additionally, we used the kruskalwallis test to confirm our findings and rank the variables in comparison to the asian nations. we offer practical recommendations for accepting fintech technologies to ease digital transactions for policymakers, regulatory organizations, asian nations, and smes. sme, covid-19, asian nations, fintech ,market. introduction: fintech, or financial technology, has been rapidly growing in popularity in recent years as a solution for many financial challenges faced by small and medium enterprises (smes). in asian countries, where smes make up a significant portion of the economy, fintech has the potential to provide effective solutions to some of the challenges these businesses face, such as limited access to finance and complex regulatory requirements. in this article, we will explore the impact of fintech on smes in asian countries and discuss whether it is providing effective solutions to their financial needs. research: smes should conduct research to identify the fintech solutions that are most relevant to their business needs. this can include researching different platforms, tools, and services that can help them improve their operations. 2. seek advice: smes can seek advice from industry associations, government agencies, and fintech experts to help them understand the benefits and risks associated with adopting fintech solutions. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 119 www.americanjournal.org 3. develop a plan: smes should develop a plan for implementing fintech solutions that is tailored to their specific needs and goals. this can include identifying key performance indicators, setting timelines, and allocating resources. 4. train employees: smes should provide training to their employees to ensure they are comfortable using new fintech solutions. this can include providing hands-on training, online resources, and support from fintech providers. 5. monitor performance: smes should regularly monitor the performance of their fintech solutions to ensure they are achieving their intended goals. this can include tracking key metrics, analyzing data, and making adjustments as needed. by following these methods, smes in asian nations can effectively adopt fintech solutions to improve their operations, increase efficiency, and stay competitive in the marketplace. small and medium-sized businesses (smes) in asian nations can benefit greatly from the efficient solutions offered by fintech. by adopting fintech solutions, smes can streamline their operations, reduce costs, and improve customer experiences. fintech can help smes access new markets, increase their competitiveness, and grow their businesses. with the right research, advice, planning, training, and monitoring, smes can effectively adopt fintech solutions and reap the benefits of this rapidly evolving industry. small and medium-sized businesses (smes) are the backbone of many asian economies, providing employment opportunities and contributing to economic growth. however, these businesses often face challenges in accessing finance, managing cash flow, and competing with larger companies. this is where fintech comes in as a game-changer for smes. fintech solutions offer smes efficient and cost-effective ways to manage their finances, access new markets, and improve customer experiences. for instance, online payment systems can help smes receive payments quickly and securely, while digital lending platforms can provide them with muchneeded capital to grow their businesses. fintech can also help smes reduce operational costs by automating processes such as accounting and inventory management. moreover, fintech can help smes expand their reach beyond their local markets. with the rise of ecommerce and mobile commerce, smes can now sell their products and services globally, reaching customers in other countries without the need for physical presence. fintech solutions such as crossborder payment systems and currency exchange platforms make it easier for smes to transact with customers and suppliers in different parts of the world. however, for smes to fully benefit from fintech, they need to be well-informed about the available solutions and how to use them effectively. this requires research, advice, planning, training, and monitoring. smes need to identify their specific needs and choose fintech solutions that are tailored to their businesses. they also need to ensure that they have the necessary skills and knowledge to use these solutions effectively. fintech refers to any company that uses technology to improve financial services and advancements through automation. it is the synthesis of financial amenities with cutting-edge technology. fintech is a quickly expanding sector that offers several advantages to both businesses and consumers. according to the global fintech adoption index, consumer usage currently exceeds two-thirds (64%) of the accessible fintech companies, up from a rate of 16% in 2015. according to young (2019), 75% of the customers surveyed used fintech solutions for money transfers and payment settlements in the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 120 www.americanjournal.org preceding year. businesses are increasingly turning to fintech, which enables elements like digital payments or other technology-driven transactions, as a result of the covid-19 pandemic (alawi et al., 2022; karim et al., 2022a; karim et al., 2022b; naeem et al., 2022a; naeem et al., 2022b). businesses view the asian area as a potential location for growth due to the region's sizable market of $2.3 trillion and 600 million customers. the vast potential client base, according to nearly threequarters (76%) of the fintech executives we polled, is what motivates them most to conduct business in asian nations. with a 56% increase of fintech solutions and the subsequent launch of new fintech goods in these countries, existing products have subsequently entered other markets and expanded there. due to their long-term association, there is a connection between financial inclusion and economic activity (singh and ghosh, 2021). productivity is a major driver of long-term economic growth and is essential for raising family and wage earnings, which improves living conditions. according to surya et al. (2021), karim and naeem (2022), karim et al. (2022c), and karim et al. (2022d), the productivity growth of asian countries is influenced by how well individual firms—including small and mediumsized enterprises (smes)—perform in a country and by how resources are distributed among those firms. smes make up a large share of all businesses in asian, accounting for between 89% and 99% of all enterprises. between 52% and 97% of the ten asian member states (amss) are thought to be employed overall (pratama, 2019). micro, small, and medium enterprises (msmes) account for over 90% of all domestic businesses and 75%–90% of asian's non-agricultural labor force. msmes create the framework for suppliers that support the expansion and advancement of major worldwide businesses (corporation, 2017). unquestionably, asian has the most international investment agreements (iias). as of april 2021, asian member states have signed 221 treaties with investment provisions (tips) and 287 bilateral investment treaties (bits) with non-asian member states as part of the free trade agreement (fta) system (young et al., 2021). smes, the majority of which are family-owned, face severe financial limitations and risk factors. governments have launched loan programs to support these businesses in an effort to ensure their survival during the pandemic, but these have largely fallen short due to the increased need for cash flows for employee retention and payment of their fixed costs (caballero-morales, 2021; naeem et al., 2022c; naeem et al., 2022d). the growth of smes is challenging and frequently still rely on conventional business practices, including access to finance. however, the performance of smes has altered as a result of digital technology, which has also shown to be a substantial contribution to the digital economy. the joint efforts of e-commerce enterprises in the promotion of goods and the digital economy payment system play a crucial part in achieving this goal (naeem and karim, 2021; tut, 2020). in the "new normal" period, digital integration is recommended as a solution for smes. this includes a move to fintech to facilitate digital payments, which is achievable when smes integrate into the larger market (ahlstrom et al., 2020). the "new normal" and the worldwide epidemic have forced smes to think of ways to stay in touch with their clients. due to the movement in consumer attention in online shopping, smes must also continue to expand their processes into digital operations with all the advantages offered (ulas, 2019). the covid-19 pandemic has caused a "new normal" state to arise in sme business transactions that weren't already there (wiyono and kirana, 2021). the covid-19 epidemic quickly created demand for several ways to conduct financial settlements remotely and online by leveraging digital technology because it severely limited people's ability to american journal of business management, economics and banking volume 13 june, 2023 p a g e | 121 www.americanjournal.org communicate physically. this element created the path for smes in asian nations to utilize technology and maximize their resources, which sped up the development of fintech in the area. the covid-19 pandemic had a negative impact on the world economy. the pandemic's effects on the fintech sector first worried the corporations, but it appears that they weren't as bad as first thought. for instance, it appears that the epidemic did not affect indonesia's fintech sector. the overall amount of fintech payment transactions in 2020 hit a high (sugandi, 2021) and the indonesian revenues for several fintech products were larger in 2020 than in 2019 (sugandi, 2021). small firms, which are the ultimate beneficiaries of technical advancements, are getting more competitive and interesting in recent times, as is the global trade environment (akpan et al., 2020). asian had a record amount of fintech investment during the first three quarters of 2021, reaching us$3.5 billion, and a growth in internet users in tandem. the survey questions are divided into five main categories: (i) the effect of fintech startups on smes' growth; (ii) the relationship between fintech startups and economic development; (iii) the collision of fintech and smes during covid-19; (iv) obstacles to fintech in smes; and (v) smes' understanding of fintech. these inquiries enable us to determine if the growth trajectory of fintech and smes, which are interconnected, was maintained throughout covid-19 across asian nations. in many respects, our work adds to the body of literature already in existence. due of the importance of smes to these economies' economy, we first look at the interaction between fintech and smes in the asian countries. in order to determine if the fintech and sme nexus during covid-19 in the five chosen asian nations worked out favorably, we also constructed the five survey criteria. third, using factor analysis, we determined which elements were most and least critical to the relationship between fintech and smes. the kruskal-wallis test is used to confirm our results, assuring their reliability and the ranking of smes relative to asian nations. the discussion of the policy implications for regulatory agencies, decision-makers, asian nations, and smes is then based on this strong set of findings, and strategies for fostering fintech solutions to ease digital transactions are suggested. according to the findings of the factor analysis, new fintech usage by smes, or "collisions," during covid-19 was one of the most important reasons in the expansion of the fintech sector in asian. this demonstrates their progress and knowledge of fintech solutions. we also note that conventional financial institutions and regulatory bodies erected obstacles for smes in the form of a lack of loan availability and restricted access to financing options like credit. the asian economies outperformed many others during covid-19 because of their focus on digital transactions, peer-to-peer (p2p) financing, and custom rules. these other nations had lesser degrees of fintech integration. therefore, we outline the varied effects of the widespread use of fintech on policymakers, regulators, asian nations, and smes, as well as potential changes to their adoption and regulation of strategies to simplify digital financial operations. in conclusion, fintech is proving to be a game-changer for small and medium enterprises in asian countries. it is providing effective solutions to the financial challenges faced by these businesses, such as limited access to finance and complex regulatory requirements. the adoption of fintech solutions has enabled smes to access affordable financing, streamline their operations, and reach new customers. however, there are still some challenges that need to be addressed, such as cybersecurity risks and the need for better regulatory frameworks. overall, the future of fintech in asian countries looks bright, and it is expected to continue driving growth and innovation in the region's sme sector. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 122 www.americanjournal.org references 1. https://www.sciencedirect.com/science/article/abs/pii/s0313592622000868 2. procedia-soc. behav. sci. a research on determining innovation factors for smes 3. caballero-moraless.-o. innovation as recovery strategy for smes in emerging economies during the covid-19 pandemic. 4. fintech and smes sustainable business models: reflections and considerations for a circular economy. cleaner prod. (2021) 5. the theory of planned behavior organ. behav. human decis. process. (1991) 6. predicting e-readiness at firm-level: an analysis of technological, organizational and environmental (toe) effects on e-maintenance readiness in manufacturing firms , int. j. inf. manage. (2014). https://www.sciencedirect.com/science/article/abs/pii/s0313592622000868 american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 42 www.americanjournal.org on the use of phraseology in works of art (based on the novel "the address of justice" by odil yaqubov) magdaliyeva khafiza mirqadirovna g'aniyeva shohista nuraliyevna teachers of mother tongue and literature of the 35th general education school of the mirzo ulugbek district of tashkent city a b s t r a c t k e y w o r d s this article is intended for high school students to speak correctly, learn the difference between phrases and compound words, and ensure the accuracy of speech. phrase, compound word, address of justice, correctness of the word it is known that in our speech we are used to express our thoughts through certain combinations, that is, phraseology. in order to use phraseology during communication, it is necessary to know its meaning. phraseology is a term derived from the greek word "phrase" (phrasis expression, speech package), but in turkic studies, this term originally served to express different meanings. for example: mirzo kozimbek (1802-1870), a turkic scientist who lived in the 19th century, based on the traditions of that time, used the word "phrase" as "sentence" in his work, as in other descriptive grammars written in russian. ” (predlogenia) used in the meaning. "phraseological combination" means large language units. while giving information about verbs in turkic languages, he explained such language units as "to eat sorrow", "to arise", "to eat anger" as verbs with content. in general, phraseology is considered one of the relatively young fields in turkic studies. because its systematic study began only in the 40s and 50s of the last century. taking into account that such compounds are functionally close to words, some turkic scholars considered them lexical word combinations or lexical units (lexical compounds) and included them in the scope of the object of study of the fields of syntax or word formation. the founders of turkish phraseology are without a doubt s.k.kenesboyev in kazakh and sh.u.rakhmatullayev. in particular, according to academician s.kenesboyev, phraseology in a broad sense includes all fixed combinations, non-idiomatic, fixed phraseological groups of words and pairs of words. includes the common feature that unites them is stability and a ready presence in the language. the object of phraseology is a fixed set of words used as a separate language unit. s.n. in his monograph, muratov states that idioms are only one type of fixed phrases. in turkish languages, any phrase is a fixed phrase, but not every fixed phrase can be a phrase. past for example: his eyes opened like a mosh-his eyes opened. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 43 www.americanjournal.org these expressions or phrases are a spiritual treasure that further enriches the content of this language. each nation has its own way of seeing, its own status of hearing, and its own ability to create an artistic work. similarly, language has a great place in fiction. we can see in the example of the created works of art that the language of the work should be beautiful and meaningful. har qanday chinakkam shoir uchun so’z va frazeologizm (iboralar) bu fikr aytish, kechinmalarini ifodalash vositasigina emas, balki badiiy asardagi g’oyaviy-estetik maqsadga ko’ra muayyan ma’no kasb etadi, zamiridagi mazmun orqali o’zining yangi-yangi ma’no qirralarini namoyon qiladi. jumladan yozuvchi odil yoqubovning ko’plab g’oyaviy-badiiy asarlarida so’z yoki frazemalarni mahorat bilan qo’llagan. yozuvchi qaytariqlardan qochishga harakat qiladi,o’zbek tilining boy imkoniyatlarini ko’rsatib berish maqsadida ham asarlarida turli xil tasviriy ifodalar,turg’un birikmalardan ustalik bilan foydalangan. ayniqsa,uning bir iborani turli o’rinlarda ishlata bilishi uning badiiy asarlarda turg’un birikmalarni qo’llay olish mahoratidir.masalan:” o’pkasi to’lib-iztirob chekib,yig’lab yuborish holatiga yetgan iborasini o’zining “adolat manzili” romanida yetti o’rinda qo’llagan va bu ibora turli holatlarda qahramonlarning yig’lash holatiga yetib kelganligini ko’rsatadi. "your lungs are full" your son-in-law suyun brother. suyun brothers he said and fell silent. what happened to your son-in-law, mom, who felt that her daughter's lungs were full and was being taken by herself? : 5 pages.) "his lungs are full":he forgot that he wanted to go to the office and turned towards his thoughts. took it. (am: page 39.) "his lungs are full": forgive me! said his lungs full forgive your sinful eagle, i have entrusted you to god (am" p. 53.) "his lungs are full" marjonoy rubbed the paper on his face and eyes. this phrase is used in seven places. the analysis shows that more than seven hundred idioms are used in the novel "the address of justice" by the writer odil yakubov. almost all of these phrases are used in their universal form, that is, without any changes in their content. for example: "eye the phrase "take under the eye" in the literary language is the universal phrase "to take under the eye" (shavkat rahmatullayev o'tiflpage 147). the novel expresses marjonoy's thoughts and dreams, "marjonoy has already taken this beautiful girl with the lightness of a bird in her arms and legs. (am: p. 23) in general, the novel "the address of justice" is smaller than other novels, but it uses a lot of fixed conjunctions. fixed conjunctions served to increase the effectiveness of the language of the work. but the writer's skill in creating an artistic work is only a phrase. not in the ability to use it, but in the ability to use stable combinations and phrases that can fully match the time of the situation. odil yaqubov made a unique contribution to the phraseological wealth of the uzbek literary language. in order to better understand the secrets of the writer's skill in this field, it is necessary to get acquainted with the poetics of his works. in conclusion, it can be said that the uzbek language is very rich in stable compounds. our poets and writers need great skill to be able to use them. we certainly see this skill in the personality and creativity of the writer odil yakubov. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 44 www.americanjournal.org references: 1.odil yoqubov .adolat manzili. toshkent.sharq nashryoti, 2005. 2.sh.rahmatullayev .”o’zbek tilining frazeologik lug’ati” toshkent, 1979yil. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 58 www.americanjournal.org going digital and its effects on international business suyunova yulduzkhon akbarovna, student, navoi state university of mining and technologies uzbekistan, navoi a b s t r a c t k e y w o r d s the article is devoted to the problems of adapting strategic management tools to the rapidly changing external environment caused by the rapid development of the digital economy and its impact on international business. in this article, the main trends of changing the digital business environment at the macro and micro level, the issues of increasing the efficiency of using the internal potential of the company, the specific features of the competitive struggle based on the active use of information and communication technologies are covered. digital economy, production, international business, innovation, information, macro and micro level it is impossible to imagine the modern world without information technologies, which have changed and facilitated various industries, opening up new market opportunities. the emergence of new digital infrastructures, the development of computer technologies, and digital communications creates new opportunities in the field of information technologies, applies them to the socio-political and economic life of society, and forms a new system of the international economy. is digital. the digital economy is based on the production of electronic products and services by high-tech business structures and the implementation of these products through electronic commerce. the digital economy is an activity in which the main factors of production are information presented in digital form and their processing and use in large volumes, which allows for an increase in various types of production, technologies, equipment, efficiency, quality, and productivity. storage, sale, delivery, and consumption of goods and services. laws in economic relations and foreign cooperation are the subject of the digital economy. relations are formed in the process of production, exchange, distribution, and consumption of scientific and technical information through digital information technologies, and the development of these processes is subject to economic laws. the relevance of the article is related to the technological changes that create new features both in the global economic system and in the economy of individual markets and enterprises. digital technologies have revolutionized business. the new digital economy is based on fundamentally different rules than the traditional economy. economic entities are forced to work in a constantly changing environment, and development in such conditions means the constant adaptation of business to the dynamically changing environment at the strategic and tactical levels. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 59 www.americanjournal.org the purpose of the article is to determine the impact of digital information technologies on business and to propose ways for the company to respond to the problems of the digital economy. the digital economy has a major impact on manufacturing, commerce, transportation and financial services, education, healthcare, media, and more. technologies empower people and organizations in different ways, create and spread ideas, and develop and grow. introduction and implementation of innovations in commercial activities. the development of the information digital economy is inextricably linked with the development of the information market. the information market can be described as a system of economic, legal, and organizational relations for the purchase and sale of intellectual labor products on a commercial basis. with the growth of informatization and digitization of society, the information industry began to dominate the economy, production is becoming more and more innovative and intensive. the number of people employed in the field of information and communication technologies is increasing year by year. in recent decades, the main factor stimulating the informatization of society is the growth of the availability of hardware and software and the development of network technologies. the rapid development of the information market was significantly influenced by the rapid growth of business in the development of software products. the information market uses special methods of competition of structures that perform non-universal functions of developing innovative technologies for the production, storage, processing, and transmission of information in order to optimize the business processes of organizations. at the microeconomic level, information and communication technologies (ict) allow enterprises to optimize business processes. at the macroeconomic level, the impact of ict explains the need to choose new directions for the development of the economy of countries and regions that take into account the trends in the world economy, including its use. the digital economy is able to overcome a number of limitations inherent in the traditional economy. digital products can be copied and used by an unlimited number of people, and they do not lose their consumer characteristics, and often improve as these characteristics are shared and shared. in this case, material products cannot be used by more than one person at the same time and are subject to wear and tear during operation. internet stores allow for avoiding limitations in areas and, therefore, in the width of the assortment, which is characteristic of conventional trading platforms. the development of the digital economy has led to the emergence of a new type of competition hypercompetition. the systemic elements of hyper-competition are multi-level and multi-dimensional, new knowledge, controllability, dynamism, flexibility, mobility, innovation, efficiency, etc., which determine the globalization advantages of world leaders and technologically advanced multinational companies. as the influence of data on company management increases, further scrutiny of the ways in which it is used is required. nowadays, it is increasingly difficult to solve organizational and management problems of companies, to establish business processes. the digital economy has made a number of important changes in the activities of companies: 1. the emergence of an information production factor that has become an important resource: 2. an increase in production costs due to the fact that information as a commodity and factor has a price; 3. reducing transaction costs through the use of ict; 4. increasing the importance of the human factor in the introduction of ict-based production; american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 60 www.americanjournal.org 5. reducing the importance of the uncertainty factor by actively using the information resource. in the traditional economy, the main role in the relationship between the producer and the buyer was played by the producer, because he was concerned with the formation of product ideas. the buyer made a choice from the list of benefits already produced and offered by the manufacturer. in the digital economy, the modern customer has the opportunity to be a participant in the process of creating new consumer value, and generating ideas for new products and services. the transition to closer interaction with the consumer can be described as a logical step for manufacturing enterprises to change the business environment. manufacturing companies began to cooperate more and more with the consumer (creating product design, manufacturing products according to individual orders, developing new product functionality, etc.). the concept of "open innovation" developed by g. chezborough is also related to the changes caused by the digital economy. open innovation can be observed in the process of actively involving consumer businesses in the process of creating innovations, in which companies use not only internal ideas (ideas of employees), but also external ones (ideas of consumers). knowledge is a strategically important asset in the digital economy. they play a key role in the sustainable economic development of companies in various industries. in this regard, it is appropriate to form new approaches to developing a business development strategy based on modern tools and methods of integrating corporate knowledge into the company's management system. knowledge management, as one of the most important activities in the management system, should be directed to the formation of intellectual values, and the development of organizational, consumer, and human capital of enterprises. intensive use of intellectual assets provides opportunities for the formation of internal and external competencies, which together form the system of the company's main competencies. the development of the digital economy has a significant impact on the internal and external business environment. there are fundamental changes in the field of information and communication technologies, which are reflected in various directions of the company's activity. the internet allows even new and small companies to sell their products worldwide. companies can be established and developed quickly with relatively small capital investments. information technology helps to reduce costs, significantly increase labor productivity and productivity in almost all sectors of the economy. in the digital economy, the position of companies in the market is becoming more complicated, risk and uncertainty are increasing in making strategic decisions. this situation is associated with unstable conditions due to dynamic changes at the technological level, increased competition, and the influence of the state on the economy. the technological changes inherent in the digital economy create new market rules of business for producers and buyers. in the digital economic environment, companies must constantly seek new competitive strategies and improve their competitive performance. in order to survive and develop in the new environment, companies need to improve their skills in the field of digital information technologies. references 1. toffler e. metamorphosis of power: knowledge, wealth and power at the threshold of the xxi century – m.: publishing house "ast", 2008. – 669 s. 2. applegate l. m., mcfarlan f.w., mckenney j. l. corporate information systems management: the issues facing senior executives. irwin, 1996. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 61 www.americanjournal.org 3. xudayarov r., akhror a. big data types of education system and opportunities for using them in the field //journal of academic research and trends in educational sciences. – 2022. – т. 1. – №. 4. – с. 21-24. 4. uchkun s., dilshod n. process of identifying the significant accounts in the revenue cycle //journal of marketing, business and management. – 2022. – т. 1. – №. 1. – с. 32-36. 5. j. smit, s. kreutzer, c. moeller, m. carlberg, "industry 4.0 analytical study", economic and scientific policy european union, 2016. 6. k. schab, "fourth industrial revolution", world economic forum, 2016. 7. l.k. gurieva, "strategy for the innovative development of the regional economy: theory and methodology", vladikavkaz, 2007. 8. uzbekistan quality job creation as a cornerstone for sustainable economic growth. kym anderson, edimon ginting, and kiyoshi taniguchi. may 2020 9. wallerstein, "world-system analysis. an introduction". duke university press, 2006. 10. https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nimadegani/.html 11. https://review.uz/uz/post/raqamli-iqtisodiyot-mamlakatimiztaraqqiyoti -garovidir. https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nima-degani/.html https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nima-degani/.html https://review.uz/uz/post/raqamli-iqtisodiyot-mamlakatimiztaraqqiyoti american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 54 www.americanjournal.org the role of innovation in entrepreneurship and business development and innovation development models xurshidbek mamasoliyev master’s degree student, department of management, fergana polytechnic institute, fergana, uzbekistan a b s t r a c t k e y w o r d s currently, innovation is becoming one of the most characteristic features of economic development. not long ago, this name reminded of something exotic, unknown and not very clear even among professionals, but now the innovation itself and its concepts are rapidly conquering the world. the international capital market, which plays a significant role in the innovation process and turns innovation into a strategic resource for enterprises, is expanding, and new financial structures are helping it in this regard. the experience of developed countries shows that innovation is often hindered by people's direct negative attitudes and attitudes. however, a paradoxical situation is developing in uzbekistan, that is, the whole society expresses positive attitude and support to innovative processes. entrepreneurship, business development, innovation development, economic systems. introduction in particular, it is reflected in many normative legal documents adopted in uzbekistan and bills widely discussed in social networks. the law of the republic of uzbekistan of july 27, 2020 on innovative activity, the law of the republic of uzbekistan "on science and scientific activity", the decree of the president of the republic of uzbekistan of january 22, 2018 "on the republic of uzbekistan in 2017-2021 presidential decree on the state program for the implementation of the strategy of actions in the five priority areas of development in the year of supporting active entrepreneurship, innovative ideas and technologies, by the president of the republic of uzbekistan decree no. pf5975 dated march 26, 2020, "on measures to fundamentally update the state policy on economic development and poverty reduction", "on the activities of the ministry of economic development and poverty alleviation of the republic of uzbekistan and its system organizations on organization" no. pq-4653 dated march 26, 2020, "on additional measures to improve the system of attracting the population to entrepreneurship and develop entrepreneurship" 2020 decisions pq-4862 dated october 13, "on the effective organization of the activities of the entrepreneurship development agency under the ministry of economic development and poverty reduction of the republic of uzbekistan" such as the decision of the cabinet of ministers of the republic of uzbekistan dated american journal of business management, economics and banking volume 12 may, 2023 p a g e | 55 www.americanjournal.org february 17, 2021 among them. the purpose of adopting these documents is to develop business activities, to create favorable conditions for the creation and development of new entrepreneurs, to help increase the potential and efficiency of the innovation system, and to create a regulatory, financial and informational environment favorable for innovation [1-5]. it is also to increase competitiveness and productivity in the industry, to encourage the increase of the share of high-tech products, to increase production and to increase the share in the structure of production and export, to expand the use of innovative technologies and advanced management [6-9]. importance of the topic the concept of "innovation" began its new life in the scientific works of the austrian and american economist j. schumpeter at the beginning of the 20th century as a result of the analysis of "innovative combinations", changes in the development of economic systems. schumpeter was one of the first scientists to use this term in economics in the 1900s. the term "innovation" is derived from the latin word "novatio", which means "renewal" (or "change"), and the suffix "in" is translated from latin as "in the direction of", if it is used as a whole "innovatio" ”translated as “in the direction of changes”. the concept of innovation first appeared in scientific studies of the 19th century. innovation is a new or significantly improved product (goods, service) or process introduced for use, a new sales method or a new organizational method in work practices, workplace organization and external relations [1014]. analysis and results innovation is an innovation introduced to ensure the quality growth efficiency of processes and products based on market demand. man is intellectual it is the final result of his activity, his fantasy, creative process, discoveries, inventions and rationalization. delivering products (goods and services) to the market by improving the quality of new consumer characteristics or the efficiency of production systems is an example of innovation. small business and private entrepreneurship serve as a basis for the formation of the middle class in our country. it is the social layer that is interested in socioeconomic, social and economic stability in our country due to the development of this sector, and is considered an active driving force towards development and fundamental democratic changes is being formed. the issue of entrepreneurship development and legal protection of business is one of the main directions of reforms that are consistently implemented in our country [15-19]. in recent years, this industry has developed rapidly, employment and livelihood of the population has become a leading force in ensuring the well-being of in recent years, in a number of countries developing on the basis of a modern market economy, the process of giving up many of the previous functions performed by their internal departments and giving these functions to small enterprises has been observed. it is for these reasons that the number of large industrial enterprises is decreasing and the number of small enterprises is increasing. this process ensures that the market economy is dynamic, dynamic, responsive to news, and quickly adaptable to market demand and its changes. in accordance with this, one of the most important factors that allows the level of competitiveness of uzbekistan to increase with the enterprises of foreign countries is small is to create favorable conditions that allow creating a network of enterprises today, so that the aggregate of such enterprises allows creating a competitive market environment. therefore, it is possible to pay special attention to small businesses and enterprises engaged in private entrepreneurship in the regions of our republic, that this process american journal of business management, economics and banking volume 12 may, 2023 p a g e | 56 www.americanjournal.org requires new innovations, initiative, and only on the basis of this, it is possible to ensure economic development. therefore, managers of enterprises engaged in small business and private entrepreneurship in the regions should pay special attention to the introduction of the latest innovations in the field of science and technology into production. investments and innovations management. the created favorable investment environment, including the introduction of differentiated profit tax rates depending on the share of long-term investment financing in the credit portfolio of banks, serves to increase the investment activity of commercial banks [20-24]. banks' investment loans are prioritized for the tasks defined in the ―strategy of actions for the further development of the republic of uzbekistan for 2017-2021‖, the state program for the year of supporting active entrepreneurship, innovative ideas and technologies, and network modernization, localization and it is directed to the support of the projects included in the regional development programs, to the purchase of mini-technologies by small businesses and private enterprises. a separate chapter of the project is devoted to the process of financing important innovations and innovative activities. for example, sources of financing innovations and innovative activities through a number of its articles state budget funds, own funds of innovative activity entities, international grants and preferential targeted loans from commercial banks and international financial institutions, as well as other sources not prohibited by law it is shown that it can be. it is noted that commercial banks, investment, leasing companies, including foreign companies and funds, modernization and new technology funds of innovative activities, venture funds and other investors are also in accordance with the law can participate in the financing of innovative activities. in addition, our republic's rich reserves of raw materials, the presence of developed infrastructure and high intellectual potential, most importantly, its convenient geographical location serve to expand the scope of work with foreign partners. regulatory documents, most importantly, the peace and harmony prevailing in the region, the measures being implemented to prevent the negative consequences of the global financial and economic crisis, and the recognition that international economic relations are rising to a new level possible by making investments in the real sector of the economy, the following socio-economic effects are achieved: production and service provision are growing in terms of quantity and quality; an increase in the amount of production and service provision leads to an increase in tax revenues coming to the state budget; the increase in the efficiency of production and service will serve to increase the salary and increase the well-being of the population; the country's export potential will grow through competitive production that meets world requirements. development models of innovations. infrastructures play a key role in the formation of market relations. the development of infrastructure institutions is determined by the location of productive forces, their potential and the entrepreneurial activity of the population. in the conditions of modernization of the economy, the infrastructure represents a system consisting of components and elements that perform various tasks. accordingly, determine the components of the infrastructure, study the importance and economic nature of each of them disclosure is important. in the strategy of actions developed for the development of our country, it was determined that one of the most important priority tasks is the further development of production and social infrastructure as an important factor of modernization of our country and increase of population employment. there are american journal of business management, economics and banking volume 12 may, 2023 p a g e | 57 www.americanjournal.org a number of reasons for paying special attention to this priority task [25-27]. for example: first, the development of infrastructure creates the necessary favorable conditions for the establishment of new enterprises and the development of the economy as a whole, and expands the possibilities of developing the country's rich mineral resources. secondly, the production infrastructure, first of all, the developed system of roads and railways, their effective operation is an important condition and factor for reducing the total costs of production [26-28]. this, in turn, increases the competitiveness of the manufactured products and the entire economy. thirdly, the development of social infrastructure, providing the population with clean drinking water and energy, building social sector facilities, ultimately serves to increase the standard of living of the population. . fourthly, infrastructure development is a large-scale field that requires a lot of work. this is the creation of new jobs, employment of the population, especially young people ensure employment, increases people's income and well-being. it can be seen that ensuring stable economic growth in our country, further development of the real sector of the economy is largely supported by the production infrastructure of economic entities depending on the level of occupancy. in order to ensure development and create favorable conditions for consistent and stable growth of the economy on this basis, special programs on additional measures for the further development of production and social infrastructure have been adopted in recent years, and their implementation is urgent was taken under control. conclusion development or implementation of innovative projects, their application in business activities, modern innovative projects are usually large requires investment. in order to further expand the flow of foreign investments entering the economy of uzbekistan, to provide accurate information to foreign investors, to provide local entrepreneurs with information about potential investors abroad, in order to assist them, the ministry of foreign economic relations, investments and trade will provide information on foreign investments. provision and assistance agency was established. the active operation of this agency will be a great help in increasing the flow of foreign investments to the regions of our country. references 1. петрухина е.в., гужин а.а., величко н.ю. (2016). стратегия развития бизнеса как инструмент управления конкурентоспособностью. инновации и инвестиции. № 4. с. 9092. 5. 2. нижарадзе л.д., волкова а.в., овешникова л.в. (2014). современные теории менеджмента, орёл, 110 с. 3. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. 4. yuldasheva, n., & xamdamjonov, m. (2022). identification, elimination of shortcomings in the quality of goods and its economic problems. science and innovation, 1(5), 385-388. 5. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 58 www.americanjournal.org 6. юлдашева, н. (2022). корхоналарда инновацион ривожланиш стратегиясини бошқариш хусусиятлари. экономика и образование, 23(2), 129-135. 7. abduvakhidovna, y. n. (2022). directions for the effective use of innovative strategies in the management of industrial enterprises. open access repository, 8(6), 125-129. 8. yuldasheva, n. (2022). features of the process of forming innovative strategy under conditions of modern realities. academic research in modern science, 1(9), 310-312. 9. abduvakhidovna, y. n. (2023). factors influencing the implementation of the innovation strategy at industrial enterprises. world bulletin of management and law, 19, 5-11. 10. юлдашева, н. а. (2022). инновационный подходы в управлении бизнесом. in инновации в управлении социально-экономическими системами (icimss-2021) (pp. 296-302). 11. yormatov, i. t., yuldasheva, n. a., & toshpulatov, i. a. (2020). issues of electronic trade development in uzbekistan. theoretical & applied science, (12), 211-215. 12. юлдашева, н. а., & исраилова, м. в. (2022). нетнографические исследования как современный метод управления продуктом. in инновации в управлении социальноэкономическими системами (icimss-2021) (pp. 313-321). 13. djuraeva, d. d., & berdiyeva, z. m. (2016). cultural heritage as a factor of human development (on the example of uzbekistan). ученый xxi века, (5-2 (18)), 23-25. 14. ахмедова, г. а., & абдуллаева, б. ю. (2016). современные методы диагностирования банкротства и особенности его применения в республике узбекистан. журнал научных публикаций аспирантов и докторантов, (3), 5-8. 15. юлдашева, н. а. (2021). эффективность использования маркетинговых стратегий. in наука сегодня: фундаментальные и прикладные исследования (pp. 27-28). 16. yuldashevna, a. b. (2021). the digital economy as a key factor in the formation of a favourable investment climate. researchjet journal of analysis and inventions, 2(12), 1-6. 17. абдуллаева, б. ю. (2021). особенности организации бухгалтерского учета и аудита в корпоративном управлении. in бухгалтерский учет: достижения и научные перспективы xxi века (pp. 7-9). 18. yuldasheva, n. a. issues of active development of the digital economy. isj theoretical & applied science, 5(97), 375-379. 19. abdullaeva, b. y. (2022). analysis of the experience of the eu countries in increasing the capital of credit institutions. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(11), 72-84. 20. юлдашева, н. а. (2022). иқтисодий фанларни ўқитишда талабалар мустақил ишининг мазмуни ва ўрни. oriental renaissance: innovative, educational, natural and social sciences, 2(special issue 27), 24-29. 21. джураева, д. д. к., & бердиева, з. м. (2016). культурное наследие как фактор развития человеческого потенциала (на примере узбекистан). ученый xxi века, 25. 22. юлдашева, н. а. (2022). научно-теоретические аспекты разработки инновационных стратегий в управлении промышленными предприятиями. бюллетень науки и практики, 8(5), 457-461. 23. бердиева, з. м., жахонов, ж., & мирзаев, а. (2023). анализ растительного полифенола. scientific aspects and trends in the field of scientific research, 1(8), 284-287. 24. yuldasheva, n., & xamdamjonov, m. (2022). mahsulot sifatida nuqsonlarni aniqlash, bartaraf etish va uning iqtisodiy muammolari. science and innovation, 1(a5), 385-388. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 59 www.americanjournal.org 25. абдуллаева, б. ю. (2021). инновационные решения для эффективного разрешения конфликтов в вузах. central asian journal of innovations on tourism management and finance, 2(11), 64-70. 26. юлдашева, н. а. (2021). вопросы применения цифровой трансформации. in наука сегодня: задачи и пути их решения (pp. 51-52). 27. abdullayeva, b. y. (2022). повышение эффективности инновационных процессов на предприятиях текстильной промышленности. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(4), 107-115. 28. юлдашева, н. а. (2021). меры антикризисного управления на предприятиях. in современная наука. xxi век: научный, культурный, ит контекст (pp. 315-319). american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 131 www.americanjournal.org the role of the external auditor in harmonizing the environment and society when auditing the iraqi economic entities a study according to the international auditing standard (1010) sarah abdulameer kamil abugallal1) sarah.abdulmeer@mu.edu.iq hanan abdulameer kadhim al-musawi(2) hanan.almusawi12@gmail.com kareem muttairhasan(3) kareem1991kk@gmail.com college of administration & economics, al-muthanna university, iraq (1, 3) ministry of higher education and scientific research financial department (2) a b s t r a c t k e y w o r d s the research aims to indicate what is the role of the external auditor in the direction of detecting environmental and social damages according to theoretical frameworks, as well as a statement of what is the role of the external auditor in the direction of detecting environmental and social damages resulting from the iraqi economic entities (industrial and service) as a result of practicing their work in order to limit or prevent those damages that fall on the environment and society, and in the light of the results of the practical side, the external auditor will issue a conservative oversight report on the activities of the iraqi economic entities (industrial and service) despite their efforts to preserve the environment and protect society from the effects, as well as despite the disclosures about the size of the impact of their activities on the environment and society, but the presence of some damage to the environment and society and one of the most important recommendations is to activate the role of the iraqi industrial economic entities in addressing the reasons for stopping the factories, which accounted for (31%) of the total factories,of the total laboratories. in addition to the use of modern methods in the treatment of industrial solid waste hazardous to the environment and society, and the necessity of activating the role of the iraqi economic service entities in increasing the percentage of the population covered by services as well as moving away from the traditional methods of disposal of the usual waste, which constituted (87.5%) of the total quantities of normal waste. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 132 www.americanjournal.org introduction the prevailing view of the economic entity was based on the sole responsibility of exploiting resources with the aim of increasing profits and providing goods and services. however, the economic and environmental changes after world war ii and the damage to the environment prompted increasing attention to be given to the economic entity to have new responsibilities added to its economic responsibilities, which are social and environmental responsibilities.(hayes, 2005). in order for them to be held accountable, there must be a specialized an external supervisor that performs performance evaluation work on the extent of their commitment to achieving a suitable environment for the living of the population, meeting its needs, improving and developing their quality of life and expanding their options. the environmental and social activities have a fundamental impact on the financial statements, which arouses the interest of the users of the financial statements to demand the administration to approve,(thomas, norway,& johnson, 2006) .measure and disclose them in its financial statements, and therefore activating the role of the external auditor through the audit procedures that it performs in accordance with the international auditing standard (1010) provides all the beneficiaries with information about the performance of economic entities in improving and protecting the environment and reducing damage to society and the environment,(al-thunaibat, 2009) first: research methodology: 1-research problem: the research problem is embodied by asking the following questions: •does the external auditor in the iraqi environment achieve the maximum economic benefits through the possibility of accessing the reasons for the low level of efficiency of the performance of economic entities in reducing the damage, social problems and environmental damage that they cause when carrying out their activities. •does the external auditor make an audit report that includes environmental and social information to all members of society so that they can evaluate the extent to which these rare resources are used by the entity managements efficiently and effectively? 2research objectives: the research aims to clarify what is the role of the external auditor in the direction of detecting environmental and social damages according to theoretical frameworks, as well as indicating what is the role of the external auditor in the direction of detecting environmental and social damages resulting from iraqi economic entities (industrial and service) as a result of practicing their work in order to limit or prevent those damages that occur to the environment and society according to practical cases. 3-the importance of the research: the importance of the research is represented in achieving maximum economic benefits, achieving well-being for all members of society through the information provided by the external auditor in his audit report that contributes to evaluating the extent to which these rare resources are used by the entity managements efficiently and effectively. 4a hypothesis for the research: the research is based on the assumption that (the external auditor's guidance with the international auditing standard (1010) leads to diagnosing and addressing the damages of economic entities to the environment and society as a result of carrying out their work. 5-the scientific method of research to achieve the objectives of the research, two approaches have been followed in defining the research problem and the theoretical side, since it relied on the inductive approach in determining a realistic american journal of business management, economics and banking volume 14 july, 2023 p a g e | 133 www.americanjournal.org problem that economic entities suffer from in the iraqi environment, and relied on the deductive approach on the theoretical side, but regarding the practical side, it used the analytical method. 6-the research model: to clarify the relationship between the study variables (independent and dependent), the form was prepared below: auditing theoretical framework / the nature of external auditing on environmental and social activities in economic entities : first: the environmental and social responsibility of the economic entities previously consisted in profit maximization only, but the environmental and social circumstances related to them, such as the emergence of the large disparity in income and pollution of the environment, changed the basic justification for their existence, and therefore the environmental and social responsibilities of the economic entity can be clarified as follows: 1-environmental responsibility: it is represented by the real disclosure of the economic entities commitment to preventing damages that it may cause to the environment as a result of production processes, and what is its role in reducing the process of product spoilage and gas emissions, in restoring balance between workers and in preserving natural resources from depletion. the management is responsible for the accounting estimates related to environmental matters included in the financial statements,(al-hawari,&nahed,2015) it is also defined as a set of activities concerned with measuring and analyzing the environmental performance of economic entities and communicating that information to the entities that use and benefit from it, in order to help them in making decisions. it is also defined as measuring the internal and external costs related to environmental damage that have a direct financial impact on the economic entity, the environment, society and individuals, as well as the costs of preventing and discovering all environmental impacts( harris, 2000). 2-social responsibility: it is the continuous commitment of the economic entities to act ethically, contribute to achieving economic development, and work to improve the quality of living conditions of the workforce, their families, and the local community. it is also defined as the moral responsibility of the economic entity towards the group of stakeholders that are affected directly or indirectly by the actions of the economic entity. (gharib, & hussein,2015 ): external audit social activates environmental activates the economic entity american journal of business management, economics and banking volume 14 july, 2023 p a g e | 134 www.americanjournal.org second: the importance of auditing environmental and social matters: achieving maximum economic benefits through developing the economic entity and increasing the impact of the internal control system leads to reducing the risk of misrepresentation in the financial statements. contribute to achieving well-being for all members of society by transforming maximizing profitability into achieving social well-being,assisting managers in the comparison between alternatives for the purpose of assisting them in making rational decisions, which contributes to reducing environmental costs and burdens. ascertaining the extent of commitment of the economic entities in providing information to the members of society so that they can assess the extent to which these rare resources are used by the entity's' managements efficiently and effectively.(ali, abd, & kareem, 2022).calculating production costs in a way that helps in reaching modern indicators to estimate the effectiveness of the performance of the economic entity with regard to its environmental and social contribution .to identify the extent of the economic entity's contribution in the areas of environmental protection and the preservation of its resources and the rights of future generations .the possibility of accessing the reasons for the low level of performance efficiency and improving it by limiting the damages, social problems and environmental damages that they cause when practicing. it helps stakeholders' decisions to be rational by providing comprehensive information that helps in comparing between administrative alternatives and choosing the best and most effective alternative,,(arens, & james,2002) however, the existence of a set of challenges facing the external auditor when auditing environmental and social matters: (chavan, 2005) 1-the disappearance of information related to the financial costs of environmental and social activities within the indirect costs: as there are important costs, but they disappear in one way or another in the accounting records within the indirect expenses, and therefore when the urgent need for such information arises, it will not be easy to find it. therefore, these costs must be classified according to the operations and products that cause them to be achieved 2-the difficulty of obtaining financial information about environmental and social activities from accounting records: as accounting systems do not generally contain information regarding costs related to the future environment despite being of relative importance to the activity of the economic entity, because these systems are often of a historical nature. third: the objectives of the auditor in auditing environmental and social matters study the results of the environmental and social activities of the economic entity subject to audit and compare them with an economic entity similar to it in work .it aims to measure the net social contribution of the economic entity, which does not only include the elements of the private and internal costs and benefits of the economic entity. this stems from the defects of traditional accounting in the field of measuring the social performance of the economic entity,(kadhim, abd, &kareem, 2020). evaluating the environmental and social performance of the economic entity, by definition whether the economic entities strategy and objectives are in line with the environmental and social priorities on the one hand, and that it represents the relationship between the performance of the economic entities and the preservation of natural resources and social welfareproviding appropriate information about the environmental and social performance of the economic entity to all stakeholders in order to rationalize private and public decisions related to directing environmental and social,(ghammam, & fawzi,2015). activities and to determine the optimal scope for them, whether from the user's point of view or from the community's point of view. preserving natural resources by identifying the most american journal of business management, economics and banking volume 14 july, 2023 p a g e | 135 www.americanjournal.org important observations that would create a balance between the activities of the economic entity, the environment and society. study the environmental and social laws and instructions related to the work of the economic entity and ensure its compliance with those laws in a way that serves the community and the environment,(font, cogotti, &häusler, 2012) fourth: type of external auditor’s report on environmental and social activities: the report of the external auditor is the final result of the audit process, and the types of audit reports on environmental and social activities do not differ from the types of reports on financial statements. then the types can be explained as follows: (al-shaabani, & ali ,2018).( clarkson, ferguson, & hall, 2003) • the report is not conservative: the external auditor issues a unqualified report in the event that the environmental impacts of the activities of the economic entity are within the allowed range, and that the financial statements were prepared in accordance with international or national accounting principles and also in accordance with legal requirements •conservative report: the external auditor expresses a qualified opinion in his report, when the environmental management system or the internal control system for environmental performance has deficiencies and weaknesses that seriously affect society. and in the event that the auditor is not provided with the necessary information and clarifications about the environmental effects of the economic unit's activity, or when the auditor's work is restricted. • negative report: the external auditor gives his adverse opinion in his report in the event that there are environmental matters that have a clear impact on the community from carrying out the work of the economic entity with the aim of increasing the environmental awareness of the economic entities and increasing the conviction of the entity management that the impact of its activities on the environment must be disclosed to the community, as well as it must disclose the environmental efforts made in order to preserve or repair the environment. • disclaimer for expressing an opinion: the external auditor tends to refrain from expressing an opinion because of the presence of determinants or restrictions that do not enable him to obtain evidence and proofs that help him in measuring the environmental performance of the economic entity and its dangerous effects on society. the auditor prepares his report on environmental and social activities as an annex with the financial report and submits the report to several bodies, such as the public body that appointed the auditor, the board of directors, or government agencies to which the economic entity is subject under the prevailing laws, and other bodies concerned with the environment, (abd, kareem, &kadhim, 2019) the practical framework for research / external auditing on the impact of the activities of iraqi economic entities on the environment and society first: auditing the iraqi industrial economic entities: the iraqi economic and industrial entities are classified into companies and factories that include five sectors: (chemical and petrochemical, food and pharmaceutical engineering, textile, construction and industrial services), as the total number of companies reached (42) companies and the total number of factories (225) factories. the impact of the iraqi industrial economic entities on the environment and society: 1the number of operating factories (for the year 2020) that throw hazardous solid industrial waste reached (16) factories out of the total factories affiliated to the iraqi economic and industrial entities american journal of business management, economics and banking volume 14 july, 2023 p a g e | 136 www.americanjournal.org during the year 2020, and they appeared in the sectors (engineering, food, pharmaceutical, and textile) and by (12, 1, 3) factories , respectively. 2the number of factories (for the year 2021) that throw hazardous solid industrial waste reached (10) factories out of the total factories affiliated to the iraqi economic and industrial entities during the year 2021, and they appeared in the engineering, food, pharmaceutical and textile sectors) and by (6, 1, 3) factories , respectively. according to figure (1) below: figure (1) disposing of hazardous solid industrial waste 3the monthly average amounted to (8) thousand tons / month of the amount of hazardous and nonhazardous industrial solid waste generated by the iraqi industrial economic entities, as the highest amount of solid waste generated appeared from the construction sector and industrial services at a rate of (97%). 4-the monthly average amounted to (26) thousand tons / month of the amount of hazardous and nonhazardous industrial solid waste generated by the iraqi industrial economic entities, as the highest amount of solid waste generated appeared from the work of the construction sector and industrial services at a rate of (99%). according to figure (2) below: figure (2) the amount of hazardous and non-hazardous industrial solid waste generated per month second: auditing iraqi service entities: 1-the total number of central treatment plants and medium and small treatment entities in the iraqi service entities for the year 2020 amounted to (66) stations and treatment entities, the largest number of which appeared in the capital, at (10) stations. the percentage of the population served by the shared sewage networks for the year 2020 in iraq amounted to (34). the percentage of wastewater that has been treated is (60.5%) of the design capacity of the treatment plants. 2-the total number of central treatment plants and medium and small treatment entities in the iraqi service entities for the year 2021 amounted to (64) stations and treatment entities, the largest number 0 2 4 6 8 10 12 14 2020 2021 engineering sector food and pharmaceutical sector textile sector 0 5 10 15 20 25 30 the share of the construction sector in the amount of waste generated the amount of hazardous and nonhazardous solid waste 2020 2021 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 137 www.americanjournal.org of which appeared in the capital, at (10) stations. the percentages of the population served by the common waste sewage networks for the year 2021 in iraq amounted to (37.4), and the percentage of treated wastewater was (59%) of the design capacity of the treatment plants, according to figure (3) below: reports of the performance evaluation of the federal office of financial supervision and for the years (2020, 2021). 3-the percentage of the population served by the waste collection and removal service at the level of iraq has reached (65.7%), while the percentage of those served at the urban level has reached (90.7%) and in the countryside (12.5%). modifying and leveling streets, although they are outside the tasks of municipal institutions. as for the usual methods of waste disposal according to traditional methods, the percentage is (87.5%), and according to recycling or reuse methods, the percentage is (12.5%). conclusions and recommendations: first: conclusions: in light of the results of the practical side, the external auditor will issue a conservative audit report on the activities of the iraqi economic entities (industrial and service) despite their efforts to preserve the environment and protect society from its effects, as well as despite the disclosure of the size of the impact of its activities on the environment and society, but the presence of some damage to the environment and society represented by a decrease in the percentage of the population served by sewage networks, which amounted to (34%, 37.4%) for the years 2020,2021 , respectively, as well as a decrease in the percentage of treated wastewater, which amounted to (60.5%, 59%) for the years 2020 and 2021, respectively. in addition to the poor disposal of the usual methods of waste, which accounted for (87.5%) according to the traditional methods. secondly, the recommendations: activating the role of the iraqi industrial economic entities in addressing the reasons for stopping the factories, which accounted for (31%) of the total factories. in addition to using modern methods in the treatment of industrial solid waste hazardous to the environment and society, and the need to activate the role of the iraqi economic service entities in increasing the percentage of the population covered by services, as well as moving away from the traditional methods of disposal of the usual waste, which constituted (87.5%) of the total quantities of normal waste. 0 10 20 30 40 50 60 70 percentage of treatment plants percentage of treated wastewater the proportion of the population served 2020 2021 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 138 www.americanjournal.org references: 1. abd, w. h., kareem, a. d., & kadhim, h. a. (2019). audit program proposal for local accounts auditors: applied research on a group of international auditing standards. .. international journal of innovation, creativity and change, pp. 7(8), 201-222. 2. al-hawari, nahed muhammad yousry, and nahed muhammad yousry,(2015) determinants of accounting disclosure for preparing integrated reports and their repercussions on stakeholders’ decisions in the egyptian environment: a theoretical and field study. accounting thought 746 – 633,19.5 3. ali, r. h., abd, w. h., & kareem, a. d. (2022). the role of the federal office of financial supervision in auditing industrial activity to achieve sustainable development. world economics and finance bulletin, 11, 38-48. 4. al-shaabani, m. m. p., & mona muhammad ali. (2018). the role of reviewing the environmental dimension in supporting sustainable development reports. an exploratory study in business establishments in the egyptian environment. accounting thought, 22(6), 255-316. 5. al-thunaibat, ali abdel-qader, auditing in the light of international standards, theory and application second edition, jordan, 2009 . 6. arens, alvin and lubeck, james, translated by muhammad muhammad abd al-qadir al-disti and ahmed hamid hajjaj, review, an integrated introduction, saudi arabia, 2002. 7. chavan, m. (2005). an appraisal of environment management systems: a competitive advantage for small businesses. management of environmental quality: an international journal, 16(5), 444463. 8. clarkson, p. m., ferguson, c., & hall, j. (2003). auditor conservatism and voluntary disclosure: evidence from the year 2000 systems issue. accounting & finance, 43(1), 21-40. 9. dahdouh, hussein ahmed and al-qadi, hussein youssef, advanced auditing theoretical framework and practical procedures, house of culture for publishing and distribution amman, jordan 2012. 10. font, x., walmsley, a., cogotti, s., mccombes, l., & häusler, n. (2012). corporate social responsibility: the disclosure–performance gap. tourism management, 33(6), 1544-1553. 11. ghammam, mourad, dahmoun, & fawzi. (2015). the importance of environmental auditing in developing environmental performance in the economic institution (doctoral dissertation, université de bouira). 12. gharib, hussein abdel aal salem and, hussein abdel aal salem, (2015) the egyptian index of corporate responsibility for sustainable development: a new challenge for compilers and auditors in light of the principles of governance: with a field study of accounting thought 149 – 109, 19.5 11. 13. harris, jm (2000). basic principles of sustainable development. development and environment institute . 14. kadhim, h. a., abd, w. h., & kareem, a. d. (2020). the impact of environmental auditing on the environmental dimension of sustainable development (applied research on" environmental governmental institutions in iraq). ilkogretim online, 19(3), 2801-2812. 15. reports of the performance evaluation of the federal office of financial supervision and for the years (2020, 2021). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 139 www.americanjournal.org 16. saeed, aras muhammad and ahmed, othman amin, financial control and audit between theory and practice, 1st edition, 2013. 17. thomas e. mckee, norway bergen and johnson city , (2006) " increase your fraud auditing effectiveness by being unpredictable “, managerial auditing journal, vo.21, no.2, pp.224-231. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 96 www.americanjournal.org harnessing the power of artificial neural networks for advanced statistical analysis mukhitdinova munavvarhon khayotovna, doctoral student of the 3rd year of the institute for advanced training of personnel and statistical research mmunavvar@mail.ru a b s t r a c t k e y w o r d s this article provides a comprehensive review of the use of artificial neural networks (anns) in advanced statistical analysis. due to the growing complexity and scale of data, traditional statistical methods often do not provide accurate and reliable analysis. anns, with their inherent ability to model non-linear relationships and process multidimensional data, are an effective solution. methodological developments, practical applications and problems arising from the use of ann for statistical research are analyzed. artificial neural networks, statistical analysis, literature review, methodological developments, practical applications, future directions. introduction: artificial neural networks (anns), inspired by the information processing patterns of the biological brain, have revolutionized the field of machine learning, becoming a powerful tool for modeling complex relationships and patterns in data. the application of anns has been wide-ranging, from image recognition to natural language processing, and recently, their utility in statistical research has gained significant attention. statistical research often grapples with data that is high-dimensional, non-linear, and interconnected. traditional statistical methods can struggle with such data, leading to sub-optimal models and predictions. anns, with their ability to learn and model non-linear relationships in a high-dimensional space, can offer a robust alternative. however, despite the potential, the adoption of anns in statistical research is still in its nascent stage. the literature on this topic is scattered, with a clear gap in the form of a comprehensive review that brings together the methodological advances and practical applications of anns in statistical research. this paper aims to fill this gap. the objectives are three-fold: 1. to conduct an extensive literature review, bringing together significant works that highlight the use of anns in statistical research. 2. to evaluate the methodological developments and practical applications of anns in this field. 3. to discuss the challenges and potential future directions of using anns for statistical analysis. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 97 www.americanjournal.org literature review the integration of artificial neural networks (anns) into statistical research has become a significant area of focus over recent years, prompted by the explosion of data availability and computational power. the seminal work of mcculloch and pitts (1943) established the conceptual foundations of anns, modeling neural networks as logical systems. however, the practical application of these models remained limited until the introduction of the backpropagation algorithm by rumelhart, hinton, and williams (1986), which enabled efficient training of multi-layer anns. the works of hornik, stinchcombe, and white (1989), and cybenko (1989), further established the power of anns by demonstrating their ability to approximate any continuous function, given sufficient hidden layers. this "universal approximation" capability has been a key factor behind the widespread adoption of anns in complex, high-dimensional statistical modeling tasks. recent advances in the field, like long short-term memory (lstm) networks (hochreiter & schmidhuber, 1997) and convolutional neural networks (cnns) (krizhevsky, sutskever, & hinton, 2012), have made anns even more versatile, allowing them to excel in tasks involving sequential data and image processing, respectively. these developments have sparked interest in statistical researchers looking to leverage these capabilities in their analyses. however, while the literature is rich with examples of specific applications of anns, there is a lack of comprehensive reviews that tie together these disparate threads. moreover, there is a need for critical evaluation of the challenges that come with using anns for statistical research, such as their "black box" nature, which can make their results difficult to interpret, and their sensitivity to hyperparameters and initial conditions, which can affect model robustness and reliability. this article aims to address these gaps, providing a holistic review of the use of anns in statistical research, critically evaluating the methodological advances and practical applications, and discussing the challenges and potential solutions. methodology the methodology for this research study primarily encompasses a comprehensive literature review and critical evaluation. the steps followed are outlined below: literature search: relevant literature was identified through a search of several databases, including google scholar, ieee xplore, and the acm digital library. the search terms used included combinations of "artificial neural networks," "statistical research," "methodology," "applications," and "challenges." the focus was on research papers, conference proceedings, and book chapters that provided insight into the use of anns in statistical research. selection criteria: the selection of studies was based on their relevance to the topic, the significance of their contributions, and their citation count. the inclusion criteria were studies that primarily focused on the application of anns in statistical analysis. studies that merely mentioned anns as a supplementary tool were excluded. data extraction: for each selected study, there were extracted information about the specific type of ann used (e.g., feedforward neural networks, convolutional neural networks, recurrent neural networks, etc.), the statistical problem addressed, the data used, and the main findings. there were also noted any challenges or limitations reported. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 98 www.americanjournal.org critical evaluation: there were critically evaluated the methodology of each study, the robustness of the findings, and the implications for statistical research. this involved assessing the appropriateness of the ann used for the problem at hand, the validity of the results, and the potential for generalization. synthesis: the information extracted from the various studies was synthesized to identify common themes, trends, and gaps. this synthesis informed the discussion on the methodological advances, practical applications, and challenges of using anns in statistical research. by following this methodology, it has been ensured that the review is comprehensive, replicable, and provides a balanced view of the current state of the field. results the results of the comprehensive literature review and critical evaluation are presented in this section. it's important to note that, as a literature review paper, our results don't include new empirical data but rather synthesize the findings of multiple studies to provide a coherent overview of the field. prevalence of anns in statistical research: a consistent increase was found in the number of studies using anns for statistical research over the past decade. this trend aligns with the broader increase in the use of machine learning methods in data analysis. variety of ann types used: various types of anns were reported in the studies, including feedforward neural networks, convolutional neural networks, recurrent neural networks, and their variants like lstm and gru networks. the choice of ann type appeared to be primarily driven by the nature of the data and the specific problem at hand. wide range of applications: the applications of anns in statistical research were diverse, ranging from prediction and classification tasks to anomaly detection and data imputation. some studies also reported innovative uses of anns for tasks like model selection and hypothesis testing. performance of anns: across the studies, anns were generally reported to outperform traditional statistical methods in terms of predictive accuracy, especially when dealing with high-dimensional and non-linear data. challenges and limitations: despite the promising results, several studies reported challenges when using anns for statistical research. these included difficulties in interpreting the models, sensitivity to hyperparameters and initial conditions, and the need for large amounts of data for training. future directions: a significant number of studies called for further research to improve the interpretability and reliability of anns in statistical research. these results provide a snapshot of the current state of the field, highlighting the growing prevalence of anns in statistical research, the diversity of their applications, and the challenges that need to be addressed. a detailed interpretation and discussion of these results is presented in the next section. discussion the results of the literature review reflect the transformative potential of artificial neural networks (anns) in statistical research. as evidenced by the growing prevalence of anns in the field, researchers are increasingly leveraging their power to model complex, non-linear, and highdimensional data. this observation aligns with the broader trend towards the integration of machine learning methods in statistical analysis, as traditional statistical methods often fall short when dealing with today's complex data landscapes. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 99 www.americanjournal.org the diversity of ann types used and their wide-ranging applications are testament to the flexibility and versatility of these models. whether dealing with time-series data, image data, or high-dimensional structured data, anns offer robust modeling capabilities that can be tailored to the specific problem at hand. however, as noted in our results, the choice of the appropriate ann type and architecture is crucial and requires deep understanding of both the data and the problem. the superior performance of anns over traditional statistical methods in many of the reviewed studies underscores their promise. however, it's important to note that anns are not a panacea. their performance is heavily dependent on the availability of large amounts of data for training and their robustness can be affected by factors like the choice of hyperparameters and initial conditions. moreover, while anns may offer superior predictive performance, their "black box" nature can make their results difficult to interpret. this lack of interpretability can be a significant hurdle in fields where understanding the underlying mechanisms is as important as making accurate predictions. the review also highlighted several areas for future research. the need for methods to improve the interpretability of anns was a common theme across many studies. additionally, further research is needed to develop robust procedures for hyperparameter selection and initialization to ensure the reliability of ann models. the integration of anns with other machine learning methods to create hybrid models could also be a promising area of exploration. in terms of limitations, this review focused on english language studies and may not have captured all relevant research in the field. additionally, while there was included a diverse range of applications, the rapidly evolving nature of this field means that new applications are constantly emerging. given that, the use of anns in statistical research presents exciting opportunities as well as challenges. as the field continues to evolve, it will be crucial to balance the pursuit of predictive power with the need for interpretability and robustness. conclusion the comprehensive literature review has spotlighted the significant role artificial neural networks (anns) are playing in the realm of statistical research. their adoption across a myriad of applications, backed by their superior performance in handling complex, high-dimensional and non-linear data, has redefined the landscape of modern statistical analysis. the main types of anns identified in our study, ranging from feedforward neural networks to more specialized architectures like convolutional neural networks and recurrent neural networks, have shown to be versatile tools in the statistician's toolbox. their use cases span a multitude of statistical problems, including but not limited to, prediction, classification, anomaly detection, and data imputation. however, the widespread adoption of anns is not without challenges. interpretability remains a significant hurdle, with the "black box" nature of these models often hindering their acceptance in fields where understanding the underlying causal relationships is as important as prediction accuracy. furthermore, sensitivity to hyperparameters and initial conditions, alongside the requirement for large amounts of training data, can pose issues for their robust application. future research directions highlighted by the review stress the need for improving the interpretability and reliability of anns. hybrid models that integrate anns with other machine learning methods could also be a promising avenue to explore, offering the potential to capitalize on the strengths of different methods. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 100 www.americanjournal.org indeed, while anns present exciting prospects for statistical research, a thoughtful and informed approach is required for their effective use. balancing the pursuit of predictive performance with interpretability and robustness will be a crucial task as we continue to harness the power of anns in statistical research. references 1. bishop, c. m. (2006). pattern recognition and machine learning. springer. 2. goodfellow, i., bengio, y., & courville, a. (2016). deep learning. mit press. 3. haykin, s. s. (2009). neural networks and learning machines (vol. 3). pearson education inc. 4. hinton, g., deng, l., yu, d., dahl, g. e., mohamed, a. r., jaitly, n., ... & sainath, t. n. (2012). deep neural networks for acoustic modeling in speech recognition: the shared views of four research groups. ieee signal processing magazine, 29(6), 82-97. 5. lecun, y., bengio, y., & hinton, g. (2015). deep learning. nature, 521(7553), 436-444. 6. mcculloch, w. s., & pitts, w. (1943). a logical calculus of the ideas immanent in nervous activity. the bulletin of mathematical biophysics, 5(4), 115-133. 7. rumelhart, d. e., hinton, g. e., & williams, r. j. (1985). learning representations by backpropagating errors. nature, 323(6088), 533-536. 8. schmidhuber, j. (2015). deep learning in neural networks: an overview. neural networks, 61, 85117. 9. zhang, y., chen, n., zhang, k., & du, x. (2018). applications of artificial neural networks in the field of economics: a brief overview. applied economics and finance, 5(2), 1-9. 10. alpaydin, e. (2014). introduction to machine learning. mit press. 11. bzdok, d., altman, n., & krzywinski, m. (2018). statistics versus machine learning. nature methods, 15(4), 233-234. american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 154 www.americanjournal.org corporate strategic alignment and theachievement of objectives in a post pandemic era dr. macaulay enyindah wegwu department of management, faculty of management sciences, university of port harcourt, rivers state, nigeria a b s t r a c t k e y w o r d s this paper addressed the alignment of organizational strategy in the achievement of objectives in post pandemic era. the research advances a position on the imperatives of strategic alignment as a basis for effectively coping with related crisis and change events necessitated by the pandemic; while pursuing the objectives of the organization. drawing on the literature review, the research identified three key areas that require focus in the alignment of organizational strategy, these include the organization’s learning, human resource development and restructuring. the paper also advanced content which highlighted the nature of corporate strategy and its related steps, including related considerations involved in the setting of objectives and the formulation of strategies. as a research paper, the investigation adopted a quantitative methodology, and a descriptive survey design. a population of 6 (4-star) hotels was also adopted in the research with referents comprising 30 management staff (5 from each hotel). in conclusion, this research affirms that corporate strategy alignment harnesses and streamlines the organizations’ resources and competencies in a way that effectively enhances its responsiveness to the changes and contextual attributes that characterize its environment in a post pandemic era. corporate strategy alignment, objectives, pandemic, human resource development, restructuring, organizational learning 1. introduction the organization exists as a collective of interests, coordinated in such a way as to ensure the harmonic and cohesive achievement of related objectives. however, as a social system, related change events such as that of the recent covid-19, impact and in most cases derail the organization from its objectives (olawoyin, 2020). rumelt (2012) described the objectives of the organization as clearly identifiable projections offered in line with its goals or expectations. organizational objectives differ substantially from the goal or vision of the organization. mankins and steele (2005) classified goals american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 155 www.americanjournal.org as a more comprehensive and wholistic position on the expectations of the organization, whereas objectives are the detailed and more specific features of the goals or vision of the organization. however, in advancing both goals and objectives, organizations rely substantially on strategic behaviour or actions intended to bridge existing functional gaps with preferred outcomes. according to rugman and verbeke (2017) organizational strategy describes the detailed actions of the organization – designed primarily for linking its current state to its futuristic state. research points to the relative nature of organizational strategy and the imperative of its contextuality for effectiveness. in their research homkes, sull and sull (2015) noted that strategies clarify on the organizations plan of action, hence, it must be such that connects and aligns with the context or environment of the organization. this agrees with freedman (2015) position that strategies must never be imposed but should be adapted in view of the gaps or unique attributes of the environment of the organization. hence, one could argue therefore that effective organizational strategies are such that emerge and are anchored within the context (time, geographical region, market, industry etc.) of the organization; and in that way is cognizant of its particular challenges, opportunities and circumstances. grant (2016) specified three major ways in which strategies can be aligned, these include organizational learning, human resource development, and restructuring. this research builds on the views of scholars (grant, 2016; durmaz & ilhan, 2015; lev, 2017; hambrick, 2016), in its assessment of the imperatives for corporate strategy alignment in the achievement of organizational objectives. the research is justified on the basis that it offers a perspective which anchors on the current dilemma of most organizations, given their current challenges in terms of functionality during the post covid-19 pandemic – thus departing from the perspectives advanced by previous research. furthermore, effort is made in this research to clarify and expand on the implications of organizational strategic alignment building on the theoretical premise of the social cognitive theory. on this basis, this research advances a unique perspective and position on the issue of strategic alignment. 1.1 purpose of study the purpose of this research is to examine corporate strategy alignment in the achievement of objectives in the post-pandemic era. the related objectives for this research are stated as to: i.determine the relationship between learning and the achievement of organizational objectives ii.ascertain the relationship between human resource development and the achievement of organizational objectives iii.examine the relationship between restructuring and the achievement of organizational objectives 1.2 research questions in line with the stated purpose and objectives of this research, the following research questions are posed to guide the research: i.what is the relationship between learning and the achievement of organizational objectives? ii.what is the relationship between human resource development and the achievement of organizational objectives? iii.what is the relationship between restructuring and the achievement of organizational objectives? american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 156 www.americanjournal.org 1.3 research hypotheses the following hypothetical statements are stated in line with the research objectives: ho1: there is no significant relationship between learning and the achievement of organizational objectives ho2: there is no significant relationship between human resource development and the achievement of organizational objectives ho3: there is no significant relationship between restructuring and the achievement of organizational objectives 2. review of literature in this section of the study, related literature on the conceptualization of the variables and the possible relationship that may exist between them are discussed. 2.1 corporate strategy corporate strategy describes the framework established in line with advancing the organization toward its futuristic state or condition (afonina, 2015; babafemi, 2015). corporate details a wholistic approach and structured position focused on advancing the interest and goals of the organization. carter and greer (2013) identified corporate strategy as anchored on several factors, one of which is learning. according to antonakis and day (2017), learning is a vital aspect of strategy development and implementation. this is because the process and action of learning provides the organization with the required information and knowledge about the prevailing conditions or factors that influence or impact on the environment of the organization. afonina (2015) stated that the strategy of the organization is its overall structure or format for adjusting or adapting the organization to meet the change and demands of its market. it is as david (2011) noted, that an effective corporate strategy is harmonic and supports the development of organizational features that are aligned and substantially synchronized with the features or characteristics of the environment. while a variety of models and approaches have over the years advanced processes or steps related or necessary for effecting strategic actions, this research draws on a modified 4-step approach comprising of (a) strategic objectives and analysis (b) strategic formulation (c) strategic implementation (e) strategic evaluation and control (grant, 2016; menon, 2015; purce, 2014). 2.2 strategic objectives and analysis in this stage of advancing the corporate strategy, emphasis is placed on projected end or goal of the organization and assessment of the environment. purce (2014) as such this stage of strategic structuring assesses the organizations goals in line with its availing capacity and the favourability of the environment. hence at this stage, organizations learn through the scanning of their environment (swot analysis, pestle analysis) and in the same vein determine how well to adapt their existing features to match and address possible gaps in their functionality or operations (grant, 2016). i.strategic formulation: this stage of the strategic action builds on the choice or stipulation of a particular strategic approach and thus is focused on developing the required capacities and gathering the necessary resources for actualizing the organizations strategic goals. strategic formulation describes the step applied in ensuring that the strategy of the organization is not burdensome or american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 157 www.americanjournal.org overbearing on the organization (grant, 2016). grant (2016) posited that organizations that are able to effectively synchronize their internal activities with the dynamics of their environment have a better chance of transforming their ideas or plans into reality. ii.strategic implementation: the implementation of strategy builds on the organizations ability to apply its plans or projected actions in ways that are considered viable or suitable in driving the organization toward its goals. strategic implementation according to northouse (2018) establishes the organization within its context, reinforcing functions that are designed to enhance its competitiveness and effectiveness. it is as such the extent to which the organization’s structure, systems, technologies and process are configured to ensure its success in the achievement of its goals and objectives. iii.strategy evaluation and control: this stage of the corporate strategy process details the assessment of the effectiveness of strategies, their suitability and appropriateness as well as the adoption corrective measures where necessary in ensuring that related deviations or gaps in the strategic action or process is corrected (rumelt, 2012). pitelis and wagner (2018) stated that strategic evaluation and control process is one which anchors on the organizations assessment of operational alignment, the use of feedback for assessing the viability of structures and functions, and the adoption of contingent strategies in addressing possible loopholes and deficiencies in the organization’s behaviour and choices. for this research, three dimensions of corporate strategy are adopted in line with its conceptualization in this research (grant, 2016), namely – learning, human resource development and restructuring. 2.3 dimensions of corporate strategy alignment learning: organizational learning describes the related organizational actions concerned with the creation and acquisition of knowledge (grant, 2016). it is concerned with the development of structures, frameworks and relationships that aid the organization in the enrichment of its knowledge base. in the alignment of strategy, learning can be considered as playing a crucial and essential role as it acquaints the organization with the emerging issues, factors or features that are currently shaping and impacting on its environment; at the same time, it also informs the organization of the required skills, functions and strategic stance through which it could effectively address the gaps and demands of its environment or context. learning determines the criterion for success as it advances insight and at the same time equips the organization for effective alignment (grant, 2016). human resource development: human resource development as a basis for strategy alignment describes the actions of organizations geared toward advancing the skills set and capabilities of their workforce in line with the direction of change. this follows menon (2015) assertion that organizational change begins with its human resource. according to menon (2015), the development of the organizations human resource could be channelled toward specific objectives with functions such as training and job design adopted as effective tools in defining the competencies and qualities of the workforce. this agrees with phipps (2012) observation that organizations are only as responsive and effective as their human resources allow for or enable them to be. the human resource in this manner can be considered as significant in ensuring that the organization remains effective and relevant, despite the changes within its context. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 158 www.americanjournal.org restructuring: restructuring describes reorganizing or redesigning of the organizations features, such that ensure its survival and effectiveness in the face of change. restructuring according to grant (2016) should be proactive and advance functional forms that enable the organization compete more favourably. however, lee (2017) argued, restructuring can also be reactive and focus on addressing the negative impact of factors such as that of the pandemic on the organization’s wellbeing. this way, it could also be considered a strategic tool for enhancing the resilience of the organization as it aligns and further facilitates a reviving of the organization through changes to investments, debt payments, expenditure and even operational features. 2.4 issues to be considered in setting corporate objectives delery and roumpi (2017) described the corporate objectives as varied but interrelated actions that provide the premise for the actualization of the organization’s goals. objectives emerge from the goal of the organization and not the other way round. this is because objectives outline the various actions linked to the organizations goal. organizational objectives are as such the measurable and operational qualities of the organization’s goals (bertozzi et al, 2017). hence objectives allow for measurability of success or progress in the pursuit of the organization’s goals. related issues to be considered in the setting or establishment of the organization’s objectives are as follows workforce characteristics: in establishing or setting up objectives, it is imperative that organizations are considerate of the capacities, qualities and other related features that characterize their workforce. this is important as it determines the extent to which the organization can be viewed as expressing the required capacity and competence for the actualization of specific objectives (johnson et al, 2008). finance: the financial position of the organization and that required of the stated objective is also a factor for consideration in the development or setting of objectives. the financial structure and base of the organization is also an aspect of its capacity – one which determines the extent of its investments and its ability to pursue high-cost objectives or goals (grant, 2016; kumar & pansari, 2016). competition: competition is one major factor that determines the objectives of the organization. this is because organizations through their learning or scanning process often assess the activities of rivals or competitors in their environment (rugman & verbeke, 2017). this behaviour is necessary for identifying the unique ways they can standout or be distinctive in their products and services. competition is one this basis a criterion for determining the organizations objectives (thompson et al, 2005). 2.5 considerations for strategy formulation strategy formulation as earlier stated, describes the stage wherein the organization focuses on harnessing the qualities, resources and capacities required for its intended objectives or goals – by this, the organization is able to specify its intended actions toward the achievement of its objectives. in formulating strategies (thompson et al, 2005; antonakis, 2017), it is imperative for organizations to draw on the existing gaps between their capacities and what is required in the actualization of related objectives. hence considerations of strategy formulation are often reflected in (a) the suitability or appropriateness of the strategy in advancing the organization’s interest (b) the role of stakeholders, american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 159 www.americanjournal.org and (c) the values of the organization. in relation to the suitability or appropriateness of the strategy, it is important to note that strategic effectiveness is relative and as such as be considered as being linked to a variety of factors – the timing of the strategy, the environment of the organization, the industry etc. all these factors play critical roles in the choice of strategies (augier & marshall, 2017). similarly, considerations of the role of stakeholders in the formulation of strategies is also important. david (2011) stated that stakeholders are vital and play crucial roles in the organization’s wellbeing and in the achievement of its objectives. this is because the organization’s relationship with its stakeholders either reinforces its progress or on the other hand can be frustrating to it. this follows pitelis and wagnar (2018) observation that the organizations stakeholders can be considered as the “soil” upon which the organization plants or establishes itself. third, is the consideration of the organization’s values (grant, 2016). 2.6 strategy and objectives objectives are distinct from strategies (menon, 2015). organizational objectives specify the direction and expectations of the organization, whereas strategies reflect the designs and actions which enable to coordination of related features and resources in the achievement of the organization’s objectives. grant (2016) stated that it is imperative for objectives to be specific, measurable, achievable, relevant and time-bound (smart) in nature and that way realizable; however, at the same time, it is imperative that strategies are structured in ways that are cognizant of existing challenges, deficiencies, threats and other related factors that may hinder the achievement of the organization’s objectives. according to babafemi (2015) strategies are the vehicles through which the organization reaches its destination, therefore they are expected to be responsive in nature and flexible; however, the objectives of the organization are more consistent and coherent with the goals of the organization. 2.7 strategy and structure in achieving corporate objectives in post covid-19 pandemic era organizations depend on their strategies for success in their various contexts or markets. a good or effective strategy is one which is systematic and also responsive (northouse, 2018) in that it draws on existing relationships within its networks and at the same time recognizes the need for change especially such that mirrors the changes in the environment. in recent months, the onslaught of the covid-19 pandemic on businesses and organizations has demonstrated the implications or change and crisis on the organization’s behaviour and the achievement of objectives (olawoyin, 2020). purce (2014) stated that effective strategies are responsive, suggesting that alternative approaches or contingent strategies are considered in the overall strategic process. this idea or position builds on a recognition and understanding of the volatility and highly unpredictable nature of the environment. northouse (2018) stated that while certain aspects (especially the internal features and relationships) can be considered controllable to a certain degree, the external environment is beyond the control of the organization. this is because a wider and much more complex level of relationships and interactions manifest and are expressed within the environment (northouse, 2018). 3. research methodology the methodology of this research is anchored within an epistemological positivism social paradigm. scott (2005) described positivism as emphatic on an objective perspective of social reality – one which identifies the social world as separate and distinct from its social actors. according to scott (2005) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 160 www.americanjournal.org such a perspective imposes on the behaviour of social actors, and is considered deterministic; thus, supposing the capacity for understanding and prediction based on the estimates of causes and effects between two or more variables. the choice of the quantitative methodology for this research is therefore such that premised on the need for knowledge and prediction of the role of corporate strategy in the actualization of organizational objectives (bryman & bell, 2015). hence, this research adopts in its positivism stance, adopts the quantitative methodology in its investigation of the corporate strategy in the achievement of organizational objectives during the covid-19 pandemic era. 3.1 research design: the design adopted for this research is the descriptive survey design. this choice follows the focus of the research which is to identify the role of corporate strategy in the achievement of organizational objectives. the choice and adoption of the descriptive survey also follows the concern of data generation from a range of units at a specified time and the nature of the concepts of interest. collis and hussey (2014) stated that the descriptive survey supports the generation and assessment of data which primarily describes actions, behaviour, events and activities in ways that provide a clear basis for understanding and explaining related phenomena. collis and hussey (2014) further stated that the descriptive survey advances knowledge and understanding on “why” events are the way they are and also on the areas or features that can be addressed for improved outcomes. 3.2 population of the study: the population in research describes the total number of units, events, groups or individuals who share a particular context, experience or feature in which the researcher is interesting in investigating. however, a population can be universal (implying all members of a stated or identified concern) or accessible (implying only a quantifiable segment of the universal population) (bryman & bell, 2015). the accessible population for this research is six hotels which are categorized within the 4-star bracket, with at least 15 years of operational existence and located within the context of port harcourt. these comprise of (a) novotel (b) golden tulip hotel (c) juanita (d) swiss spirit (e) polo court hotel, and (f) de edge hotel. a total of 5 management staff are to be captured as units of measurement in the research based on their leadership and decision-making roles in the hotels, hence they will serve as referents for this research (population listing sourced from: www.tripadvisor.com). 3.3. sample size: the sample size describes the portion of the population adopted in line with providing representation to the entire population grouping, especially when the population is considered as too large and difficult to investigate within a particular point in time (kumar, 2008). however, the population for this research is six (6) hotels categorized as 4-star and with a total of 30 units of measurement of referents; hence this research will adopt a census in its investigation. by this, all identified units of the population frame for this research will be included in the investigation and data generated from all units. kumar (2008) described the census as a more representative approach as it involves and captures all units in the research. according to kumar (2008), this is only recommended when the research population is small (n < 30). this also agrees with bryman and bell (2015) observation that the census advances a wider and more accommodating approach in its investigation of social phenomena. thus, the entire 6 hotels 4-star hotels and 30 management staff will be investigated in this research. http://www.tripadvisor.com/ american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 161 www.americanjournal.org 3.4 sampling techniques: the sampling technique for this research is the purposive technique. this implies that participants are not just selected randomly but based on their perceived usefulness to the research in terms of their capacity to offer useful or relevant information (bryman & bell, 2015). this choice follows the identification of management staff as key to the research especially given the nature of the variables which primarily identify with management related actions and decision-making within the organization. the purposive technique which is non-probability in nature anchors on referents that are knowledgeable within the sphere of interest in this investigation (bryman & bell, 2015). 3.5 sources of data collection: the data source for this research is the primary source and the instrument is the structured questionnaire. as such data for this research will be generated primarily from the identified referents and units within the specified hotels in port harcourt. the questionnaire instrument is adopted based on its effective application in generating quantitative based data which allows for ease in numerical analysis and summaries (kumar, 2008). the structured questionnaire also facilitates increased control over responses using predefined questions and scales that ensure response consistency. 4. data results in this section, the data is analyzed, presented and discussed accordingly. the section comprised the univariate and bivariate analysis. 4.1 univariate analysis this section of the analysis addressed the distribution for the properties of the variables. the summaries for the distributions are presented on figure 1. figure 1: univariate summaries for the variables source: survey data, 2022 presented on the figure 1 are the univariate summaries for the variables – learning (x = 3.441; sd = 1.0092); human resource development (x = 4.013; sd = 1.3017); restructuring (x = 3.901; sd = 0.9814) and the achievement of objectives (x = 3.1098; sd = 1.2401). the distributions demonstrate substantiality (where x > 2.5). however, where the distributions for learning and goal achievement can 3 .4 4 1 4 .0 1 3 3 .9 0 1 3 .1 0 9 8 1 .0 0 9 2 1 .3 0 1 7 0 .9 8 1 4 1 .2 4 0 1 l e a r n i n g h u m a n r e s o u r c e d e v e l o p m e n t r e s t r u c t u r i n g a c h i e v e m e n t o f o b j e c t i v e s mean standard deviation american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 162 www.americanjournal.org best be described as moderate (2 < x < 4), the distributions for human resource development and restructuring appear to be high (where x > 3). 4.2 bivariate analysis in the bivariate analysis, the test for the hypotheses is carried out with the result presented on the table 1 table 1: test for hypotheses achievement of objectives learning hr development restructuring achievement of objectives pearson correlation 1 .524** .471** .457** sig. (2-tailed) .000 .000 .000 n 140 140 140 140 learning pearson correlation .524** 1 .652** .538** sig. (2-tailed) .000 .000 .000 n 140 140 140 140 hr development pearson correlation .471** .652** 1 .403** sig. (2-tailed) .000 .000 .000 n 140 140 140 140 restructuring pearson correlation .457** .538** .403** 1 sig. (2-tailed) .000 .000 .000 n 140 140 140 140 **. correlation is significant at the 0.01 level (2-tailed). source: survey data, 2022 the result for the test for the hypotheses shows that all three dimensions of strategic alignment (learning, hr development and restructuring) significantly contribute toward the achievement of organizational objectives. the results show that out of all three, learning appears to have a stronger and more significant impact on the achievement of objectives (where r = 0.524 and p = 0.000) compared to the effects of hr development (where r = 0.471 and p = 0.000) and restructuring (where r = 0.457 and p = 0.000) on the achievement of objectives. based on the result of the analysis, all previous null hypotheses are rejected. 4.3 discussion of the findings the relationship between corporate strategy alignment and the achievement of objectives demonstrates the significance of dimensions such as learning, hr development and restructuring to the organization’s effective engagement and embeddedness of the organization. the study through its findings, point to the need for organizational actions that build on increasing its knowledge of the environment and context in developing internal capacities in addressing the change or realities of its environment (purce, 2014). the findings of this study corroborate existing theories on the imperatives of strategy alignment in building capabilities that match the change features of the environment (northouse, 2018; purce, 2014). the findings of this research also suggest that given the implications of knowledge, such as demonstrated in the significance of the relationship between learning and the achievement of objectives, it is imperative that organizations focus on building stronger and more collaborative american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 163 www.americanjournal.org systems that support information transfer and improved levels of stakeholder’s relationship (northouse, 2018). moreso, such emphasis on learning is imperative as it informs and equips the organization with the knowledge on what aspects or attributes to modify, training and development content or the structuring of roles and responsibilities (augier & marshall, 2017). 5. conclusion the objectives of the organization are critical to its success and progress; however, the achievement of such borders on the extent to which the organization is able to align and effective match its strategies with the context of the organization. this research advanced strategic alignment in the form of learning, human resource development and restructuring as critical and imperative to the achievement of the organization’s objectives. as reveled, the organizations capacity to shape its human resource in line with the competencies required for addressing the gaps in its environment, its capacity to acquire and assimilate knowledge and the restructuring of its core features and policies, enable the strengthening and enablement of strategic frameworks that are well suited to its objectives and goals. thus, it is the position of this research that strategic alignment harnesses and streamlines the organizations resources and competencies in a way that effectively enhances its responsiveness to the changes and contextual attributes that characterize its environment. 6. limitations of study the limitations of this research anchor on three factors – (a) the methodology (b) the population, and (c) the data source. in terms of methodology, this research focused on the quantitative methodology. this follows the aggregation of data and the report of evidence based on summaries. this suggests an emphasis on generalized outcomes with little to no assessment of related individual experiences and subject interpretations of the variables from the units. such provides evidence on only an aspect of the nature of the relationship between the variables and in that manner, does not explain or provide any qualitative justification for such. the choice of the population also limits the research in the sense that it conditions the generalizability of its outcome. hence, its findings or the evidence generated can only be inferred to organizations that share similar characteristics or attributes like those addressed in this research (e.g., industry, type of organization, services). the data source for this research focused on primary data generated from the target units of the investigation. such a focus however is considered a limitation as it offers little to no secondary information or historical information on the variables. thus, limiting the research to only the estimates and summaries provided by the primary data. references afonina, a. 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(2005). crafting and executing strategy: the quest for competitive advantage. concepts and cases. new york: mcgraw-hill/irwin. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 112 www.americanjournal.org staff efficiency in the service sector: problems and solutions (on the example of uzbekistan) mardonov bakhodir bahronovich associate professor, doctoral student of the department " digital economy" samarkand institute of economics and service boxodir82@mail.ru a b s t r a c t k e y w o r d s this article describes the problems of determining the effectiveness of employees in the service sector and shows the shortcomings of existing indicators. also, new indicators are proposed and analysed that determine the efficiency of industry workers, and conclusions are drawn on the example of service sector networks. service sector, labour productivity, gdp, wages, unemployment, economic growth, labour resources, demand, infrastructure, investment, natural resources, income. introduction in any country that has risen to the level of a post-industrial society, the pace of development is primarily determined by achievements in the service sector. in uzbekistan, in a short period of time, qualitative and quantitative changes have taken place in the service sector. for example, the share of services in the gross domestic product of uzbekistan increased from 33.8% (1990) [1] to 38.8% (2020) [2], the share of services in consumer spending increased from 11.2% up to 17.8% [3], respectively. on may 11, 2021, presidential decree no. 5113 “on measures for the accelerated development of the service sector” was adopted in order to turn the service sector into a developed industry in the country. this decree provides for an increase in the size of the service sector by 2.0 times by 2023. also, in the development concept of uzbekistan, the task was set to increase the volume of the service sector to 57.0% of gdp by 2035 [4]. to achieve these goals and objectives, it is necessary to widely use the capabilities of the service sector, attract economic resources, including labour, and increase the efficiency of their use. in an innovative economy, a certain part of the need for additional labour resources is covered by the growth of labour productivity of the employed. but research results show that the productivity of workers in the service sector is low. this, in turn, requires a systematic approach to the problems of increasing the productivity of workers in the service sector. to do this, we consider it necessary to effectively use the existing capabilities of the industry, as well as the labour of working employees. it is necessary to develop macro-indicators that reflect labour efficiency and create methods for their practical application. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 113 www.americanjournal.org literature review traditional methods for determining the effectiveness of service sector employees were studied by a.a. pale [5]. in the scientific work of m. v. ivashshishina [6], the definition of the efficiency of worker’s labour is described in a completely different way, that is, according to such indicators as average age, health status, and the level of professionalism of employees. the researcher o.s. chechina also pointed out in her works that it is possible to determine the effectiveness of the work of employees based on such indicators as the development of social infrastructure, the presence of favourable working conditions [7]. n.v. fedotova, p.k. fedotov and e.i. zelinskaya, in their scientific papers, argued that efficiency can be determined by comparing the results of labour between workers in the industry. l.v. sankova [9] believes that it is possible to determine the efficiency of employees' work based on the size of their wages. research shows that there are new non-traditional methods for determining the effectiveness of employees, in contrast to the above methods. for example, the economist s. v. kolesnikova, unlike the scientists mentioned above, approaches this issue in a new way and recommends using the understaffing indicator to determine the effectiveness of service sector employees [10]. in many literatures and scientific studies, the state of labour resources, the volume of investments, the level of provision with fixed assets, wages, and labour productivity in the provision of services are analysed. these indicators, included in the system of national accounts, are important when comparing the dynamics of changes in the volume of services over a specific period of time. research methodology when studying the problems of determining the effectiveness of the work of employees in the service sector, such methods of scientific research as abstraction, analysis and synthesis, induction and deduction, statistical grouping, monographic research, comparison, and others were used. analysis and results a feature of the methods proposed by the above economists is that they considered the efficiency of their employees in a narrow framework. however, as you know, the service sector has great potential for the development of the country. this requires the effective use of the labour of employees in realizing their potential. because from the point of view of the use of efficient resources in the formation of the gross regional product, the service sector is considered very important. the reason is that the value added in the production of goods is currently 42 percent, and in the service sector at least 63 percent [11]. it follows from this that 1.5 times more value added is created in the service sector with the same volume of gross production of goods and services. uzbekistan has not yet effectively used the possibilities of the service sector for the development of the country. the analysis also shows that the volume of gross services in uzbekistan is only 616 us dollars per capita, which is 56 times less than in developed countries. it should also be noted that the share of the number of people employed in the service sector in the russian federation in the number of people employed in the economy is 53.8 percent, and the volume of gross services per capita is about 6 thousand us dollars (table 1). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 114 www.americanjournal.org table 1 volume created in the service sector in the countries of the world and uzbekistan in 2021 * № countries volume of gdp created in the national economy, usd billion in the service sector number of jobs in the economy, million people in the service sector population, million people volume of services per capita, thousand usd. total, usd billion share in gdp, % total, million people share in the number of jobs in the economy, % 1 uzbekistan 116,2 21,5 35,9 14,3 7,1 50,1 34,9 0,616 2 usa 20338,6 15864,1 78,1 164,7 130,2 79,1 331,8 47,8 3 china 15801,9 8027,7 54,5 792,1 375,5 47,4* 1412,3 5,6 4 russia 1490,8** 834,7 56,3 71,7 38,5 53,8 143,4 5,8 5 germany 3535,2 2435,2 63,3 43,8 30,1 68,9 83,1 29,3 6 france 2579,2 1871,8 71,2 30,9 23,9 77,4 67,5 27,7 7 italy 1861,3 1259,4 66,6 24,9 17,5 70,1 59,1 21,3 8 japan 4433,8 2806,5 63,3 68,2 47,3 69,3 125,6 22,3 9 kazakhstan 214,1 95,9 56,2 9,2 5,6 61,1 19,1 5,1 10 tajikistan 8,7 2,8 35,2 2,4 1,0 43,7 9,7 0,297 *source: https://ru.theglobaleconomy.com/rankings/share_of_services/ *https://regnum.ru/news/2972959.html **https://data.worldbank.org/indicator/ny.gdp.mktp.kd?locations=ru&most_recent_value_des c=false in our opinion, we can conclude that the main reason for this is that the labour of the employees of the sphere was not used effectively for the development of the country. as a rule, the efficient use of labour resources is a necessary condition for the development and growth in the development of the national economy of any country and the acceleration of economic growth. the experience of advanced economies has shown that the presence or absence of natural resources cannot be a major impediment to economic growth. the experience of countries that are very rich in natural resources but do not have high rates of economic growth can serve as proof of the correctness of our opinion. the quantity and quality of natural resources determine the potential of the country's national economy. but the realization of the existing potential and opportunities, that is, their transformation into real results of the growth of the gross domestic product produced in the country, ensuring the abundance of goods and services, is carried out only with the direct participation of the labour force, which has a great influence on the production process. for this, it is advisable to develop new methodological approaches that include factors that affect the work of employees in the service sector. because the existing methods for determining the effectiveness of employees in the service sector do not meet today's requirements. the performance of service workers can be measured in two ways: ✓ as one of the components of the national economy of the country (at the macro level); ✓ as personnel in a separate enterprise (at the micro level). to determine the efficiency of labour, the results of labour (products and services) are compared with labour costs. labour productivity is determined by comparing the volume of output with the number of employees or a certain period of time. the costs of manufactured products are divided into the https://ru.theglobaleconomy.com/rankings/share_of_services/ https://data.worldbank.org/indicator/ny.gdp.mktp.kd?locations=ru&most_recent_value_desc=false https://data.worldbank.org/indicator/ny.gdp.mktp.kd?locations=ru&most_recent_value_desc=false american journal of business management, economics and banking volume 10 march, 2023 p a g e | 115 www.americanjournal.org following types: equipment, premises, electricity, materials, labour and other costs. a special place among them is occupied by labour costs. labour costs include employee training, experience, retraining and other similar costs. in some cases, for example, the expenses of an employee for listening to music, holding cultural and entertainment events, working on themselves, gaining independent experience, playing sports, communicating with industry experts, participating in various meetings are not included in labour costs. however, they play an important role in increasing the activity of the employee and providing quality services. also, the employee uses certain services (transport services, communication services) to arrive at work on time and in a good mood. the employee's expenses for the use of these services should be included in the cost of goods produced or services rendered. in a post-industrial society, the physical and creative abilities of a person, including knowledge and skills, determine the production potential. the formation in a person of such qualities as qualifications, skills and their subsequent use in the production process to achieve high results, of course, requires certain costs. investments aimed at improving the quality of labour resources will give several times higher financial results compared to other resources needed for production. but in the conditions of socio-economic systems, based on the purpose of society, the essence of labour efficiency is changing. that is, the costs are borne by the employees, not included in the cost of services. in a post-industrial society, a person becomes the driving force of economic development. the mood, well-being, calmness, enthusiasm of employees play an important role in achieving the goals and objectives. for this reason, the work of employees should be properly encouraged. using the recommendations of the above economists, we propose to use the following formula to calculate the efficiency of service industry employees: 𝑴𝒔 = 𝐌𝐮 𝐐+(𝐐∗𝟎.𝟐𝟓) ms labour productivity; mu labour productivity in the service sector; q average wages in the service sector; the advantage of this formula, which we recommend, is that it reflects the employee's performance and expenses. another important aspect is the widespread use of certain types of services used by the employee in the process of providing services (increasing the volume of services and improving their quality). for example, expenses for certain activities, such as transportation, entertainment and recreation, are also included in expenses. in our calculations, the cost of using these types of services amounted to 25% of the total cost (we studied the cost structure for employees and calculated based on this by timing). however, this figure varies depending on the increase in employee costs for some of the activities used in the service process. the labour efficiency index calculated using this formula can have a value equal to 1 (ms=1), greater than 1 (ms>1) or less than 1 (ms<1). if ms=1 (with labour productivity and wages unchanged), wages will increase by one percent for a one percent increase in output. equality of labour efficiency ensures the stable work of the employee. in such a situation, the volume of services will not increase, the quality will not change, and new jobs will not be created. if ms>1, the enterprise is assessed positively, the volume of services in the industry increases, the rate of price growth stabilizes, the inflation rate decreases, it becomes possible to create new jobs, introduce new types of services and stimulate employees. on the other hand, economic interests between employer and employee are violated. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 116 www.americanjournal.org if ms<1, this indicates that labour productivity is growing at a slower pace than labour costs, as well as that the volume of costs in the industry is increasing, and the potential of employees, fixed assets and other resources are used inefficiently. in the future, this situation leads to a decrease in employment and an increase in the number of unemployed. in the proposed formula, the result of labour efficiency (ms=1, ms>1 or ms<1), equal to 1, more than 1 or less than 1, is good from the point of view of the enterprise, or, say, from the point of view of the state. it is important for an employee to find a certain break-even point of the result if it represents a decrease in his socio-economic interests or vice versa. therefore, we suggest that the result of "ms" be equal to ms=0.7 or ms=0.8. because there is a norm in the ratio between labour productivity and wages. studies have found that "it is desirable to increase labour productivity by 1% and increase wages by 0.7-0.8%" [12]. from this point of view, we found that the result in the recommended formula should be around 0.7 or 0.8. in this case, there is no conflict of interest between the employer and the employee. on the other hand, the employee uses all his possibilities to cover his expenses in the process of providing services (receiving monetary compensation for good work), strives to use economic resources efficiently. this, in turn, allows the creation of new jobs in the industry. using the formula recommended above, we calculated the performance of employees in service networks. table 2 performance indicators of employees in the service sector in uzbekistan* service networks year change 2020 compared to 2019 (+;-) 2017 2018 2019 2020 wholesale and retail trade, car and motorcycle repair 0,5 0,6 0,6 0,6 х accommodation and food services 0,4 0,4 0,4 0,4 х transportation and storage 1,0 1,0 1,0 1,0 х information and communication 2,3 2,2 2,0 2,3 +0,3 financial and insurance activities 3,2 3,3 3,4 4,3 +1,0 education 0,9 0,9 1,0 0,9 -0,1 provision of medical and social services 0,7 0,8 0,9 0,9 х arts, entertainment and recreation 0,5 0,7 0,8 0,8 х other types of services 0,1 0,1 0,1 0,1 х * source: calculated by the author based on data from the state statistics committee of the republic of uzbekistan. the calculations showed that the efficiency of employees in the service sector in uzbekistan is more than the norm we proposed, and some have less by 0.7 and 0.3 points. for example, in 2020, the efficiency of employees in the service sector in the wholesale and retail trade, the network for the repair of motor vehicles and motorcycles increased by 0.1 points compared to 2017. but this is less than the established norm by 0.2 points. the performance indicators of the employees of the residential and catering network are also 0.5 points lower. as mentioned above, this situation indicates that the potential of employees, fixed assets and other resources in the network is used inefficiently, and this process cannot be assessed positively. on the other hand, the performance of providers of information and communication, financial and insurance services in the service sector differs slightly from the performance of other sectors of the industry. for example, the efficiency index of information and american journal of business management, economics and banking volume 10 march, 2023 p a g e | 117 www.americanjournal.org communication service employees is at least 2, or, say, the efficiency index of financial and insurance services employees is 2.6 times higher than the norm. this state can be assessed positively. because, on the one hand, the volume of services in the industry is increasing, price growth rates are stabilizing, inflation is decreasing, it becomes possible to create new jobs, introduce new types of services and stimulate employees. on the other hand, there is a conflict between the economic interests of the employer and employees. that is, in such a situation, the employee seeks to demand from the employer to further improve working conditions, reduce working hours, increase wages and other similar benefits. and the efficiency of employees in the service sector for transportation and storage is 1. this situation hinders the rapid development of the service sector. because in such a situation, stable work of employees is ensured. but the volume of services in the sphere will not increase, the quality will not change, new jobs will not be created. therefore, the effectiveness of the employees of this network cannot be assessed positively. this situation can be observed in the educational network of the service sector. although in 2017 and 2018 the efficiency of staff in the learning network was 0.9, by 2019 this figure was 1, and in 2020 it was again 0.9. in the rest of the service sector, including health and social services, arts, entertainment and recreation, labour productivity is close to normal. however, this network also increased by 0.1 points from the norm established in 2020. therefore, it is necessary to develop measures to increase the volume of services in this network. the effectiveness of other types of services of network employees is less than the established norm by 0.7 points. the results of the analysis carried out during the study showed the instability of the effectiveness of employees in almost all sectors of the service sector. this situation does not correspond to the essence of this sphere in the process of transition to the post-industrial stage of socio-economic development, its position and significance in the national economy, its requirements for the implementation of the huge tasks set for the sphere in the future. thus, the problem of improving the efficiency of the industry's employees is becoming increasingly acute. to solve this problem, it is necessary to correctly and effectively use the available opportunities. conclusion/recommendations we concluded that raising the wages of employees in the general service sector in line with performance is of paramount importance, expanding some sectors of the industry, including healthcare, social services, finance and insurance, education, tourism, accommodation and catering services. it is the development of these types of services and the use of the national wealth and experience accumulated over many years in the field of providing employment to the population that will increase the volume of gross services in the country. the following proposals were also developed to determine the effectiveness of employees in the field: ➢ firstly, it is proposed to use formula 1 when determining the effectiveness of service sector employees; ➢ secondly, it is desirable to ensure that the efficiency results of service employees are around 0.7 or 0.8. references 1. ўзбекистон республикаси ижтимоий-иқтисодий тараққиётнинг мустақиллик йилларидаги (1990-2010 йиллар) асосий тенденция ва кўрсаткичлари ҳамда 2011-2015 йилларга мўлжалланган прогнозлари. статистик тўплам. -т.: ўзбекистон, 2011. -49 б. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 118 www.americanjournal.org 2. ўзбекистон рақамларда 2019-2020. ўзбекистон республикаси давлат статистика қўмитаси тўплами. -т.: 2021 й. б.39. 3. ўзбекистон рақамларда 2019-2020. ўзбекистон республикаси давлат статистика қўмитаси тўплами. т.: 2021 й. б.73. 4. the concept of the development strategy of the republic of uzbekistan until 2035. / uzbekistan2035.uz/uz 5. бледных а.а. оценка эффективности использования трудового потенциала//экономика труда. 2018. томб 5. -№2. -с.493-502. 6. иващишина м.в. факторы, влияющие на эффективное использование трудовых ресурсов // новые технологии. – 2016. -№1. -с.78-80. 7. чечина о.с. система показателей оценки трудового потенциала промышленных предприятий и эффективности его использования. / автореф. дис…канд. экон. наук: 08.00.05 экономика и упр. нар. хоз –вом (по отраслям и сферам деятельности, в том числе экономика труда). самара, 2015. -19с. 8. федотова н.в., федотов п.к., зелинская е.и. экономика и менеджмент горного производства. учебное пособие. м.: 2017. 9. санкова л.в. достойный труд как новое измерение качетсва трудовой жизни: региональный аспект// каспийский регион: политика, экономика, культура 2012. -№1. -с. 105-110. 10. колесникова с.в.эффективность использования трудовых ресурсов в организации // вопросы экономики и упраления. 2016. №5 (7). – с.153-154. 11. information of the state committee of the republic of uzbekistan on statistics. official website of the state committee of the republic of uzbekistan on statistics/www.stat.uz 12. плышевский б.п. соотношение динамики производительности и оплаты труда. // вопросы статистики, № 6. 2006. -с.5. american journal of business management, economics and banking issn (e): 2832-8078 volume 4, | sep., 2022 p a g e | 1 www.americanjournal.org financial technology and its relationship to indicators of sustainable development with special reference to iraq asst. prof. dr. ahmed h. al-husayny al-mustansiriyah university; administration and economics college finance and banking sciences department e-mail:dr.ahmad_hamdy@uomustansirisyah.edu.iq a b s t r a c t k e y w o r d s financial technology as an experience in the banking sector is a recent financial experience. the current study examines the ability of the banking sector to contribute to achieving the requirements of sustainable development through the role of modern technology in enabling various social groups to own electronic services and use them to meet their requirements. this will contribute to the advanced stages of achieving the seventeenth sustainable development goals. the search will focus on iraq and how many financial technology requirements will support sustainable development requirements. financial technology, banking sector, sustainable development, electronic services, recent financial experience, innovating financial and banking services, electronic payment cards. introduction recent years have witnessed many developments, especially in the technical field. this is clearly reflected in the economic and financial arenas. this stimulated the economic, financial, and banking sectors to invent new financial tools in harmony with the development in the technical field. furthermore, innovating financial and banking services that serve the investment process. financial technology is one of those innovations employed to achieve the development goals represented by the 2030 sustainable development goals. through practical experiences, financial and banking innovations have proven their high flexibility in development compared to traditional tools, as well as the high desire of the public to deal with financial technology tools. iraq, like other countries, began a few years ago to introduce technical innovations in the financial and banking fields, and this is represented in the spread of the use of electronic payment cards. also, financial technology in electronic clearing systems between banks and other banking tasks significantly reduced routine banking activities. undoubtedly, like other countries, iraq aims to achieve sustainable development goals by exploiting financial and banking innovations by activating banking work and expanding the provision of financial and banking services to achieve economic and social development. in order to shed light on the importance of financial technology and its role in achieving sustainable development, american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 2 www.americanjournal.org the study relied on the descriptive analytical approach through the data obtained. the study was divided into three sections: the first section highlighted the financial technology concept and its characteristics and challenges, while the second topic was devoted to research on the volume of investments in financial technology across the world. as for the third topic, it is concerned with digital finance in iraq and its role in achieving sustainable development goals 1the problem of the study: the banking sector in today's world faces many challenges, the most prominent of which are the emerging companies and financial institutions that provide technological services, which entered the banking arena and began providing financial and banking services to all segments of society. this made the international banking sectors in general and the iraqi banking sectors, particularly, face the challenge of facing emerging technology companies that have employed their technical innovations to serve society. consequently, it became imperative for the banking sector to develop financial tools that would enable it to provide the best banking services to all segments of society. this leads to an increase in the welfare of society, which is directly reflected in the achievement of sustainable development goals. based on the foregoing, the problem of the study can be formulated by the following question: (have modern financial innovations represented by financial technology able to achieve sustainable development goals?) 2-the importance of the study: the importance of the study is highlighted by showing the importance of financial innovations, including financial technology, in revitalizing various economic sectors, increasing their productivity, and contributing to achieving sustainable development goals. it is impossible to achieve sustainable development goals without financing small and medium enterprises. this prompted the banking sectors, including the iraqi one, to search for financing opportunities to advance the economy and employ manpower in the country, which is reflected in achieving sustainable development goals. 3the objective of the study: the study mainly aimed to demonstrate the role of financial technology in developing the banking sector as one of the modern financial innovations. it is responsible for enabling the banking sector to achieve sustainable development goals by enabling individuals to own modern technology and make qualitative and quantitative leaps in investing in this type of financial innovation to achieve social, financial, and economic development. 4study hypothesis: the study is based on a general hypothesis: modern financial innovations, including financial technology, can provide an appropriate economic, financial, banking and social environment to achieve sustainable development goals. 5previous studies: many studies have examined the role of modern financial innovations, especially financial technology, in achieving sustainable development, the most important of which are: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 3 www.americanjournal.org reham ahmed mamdouh's study, the impact of financial technology on economic justice, published in the scientific journal of economics and trade 2020. it concluded that strengthening the digital infrastructure by delivering electronic services to remote villages and poor strata of society at a reasonable cost contributes practically to increasing social welfare; thus, increasing the chances of achieving sustainable development goals. rabah berrich study, the role of financial technology in promoting financial inclusion, a case study of indonesia, 2020. the study concluded that promoting financial inclusion in the current era mainly requires digital financial and banking products. focused financial inclusion policies in indonesia have succeeded in encouraging the use of financial technology and thus increasing the chances of achieving sustainable development goals. jihan abdel salam abbas's study, the impact of financial technology on the performance of financial and banking services in sub-saharan africa, 2021. the study concluded that many economic and financial advantages result from digital transformation in africa's financial sector (sub-saharan). raising the efficiency and speed of providing financial services of various kinds is in the interest of improving the performance of financial and banking services in the african continent. the study expected that by the year 2035, technological innovation and infrastructure development could play critical roles in raising economic growth rates and achieving sustainable development based on the digital transformation of all kinds and forms, especially financial technology. 6spatial and temporal limits: iraq was chosen as a sample for the study, considering that iraq is one of the newer countries using modern financial innovations, including financial technology. the study was prepared in 2022 the first topic financial technology. the concept, characteristics, and challenges first: the concept of financial technology (fintech): one of the challenges facing the traditional banking industry is the technology gap. perhaps the acceleration and complexity of the development taking place in the world of technology, in addition to the diverse needs of individuals and economic and financial institutions, posed a real challenge to the banking sector. it is necessary to find and invent technological means that provide banking services to various economic sectors. studies indicate that the next few years will witness real and qualitative leaps in digitization, especially in global communications, which means radical changes in money transfer methods. the traditional banks, which used to make profits by mobilizing savings and redirecting them in loans and credit facilities to the public, cannot continue in the same pattern, especially in the coming years. the coming years will witness no use of money in its current traditional form, but electronic currencies will be replaced as a means of exchange and conducting business and economic activities. therefore, traditional banks will be complex if they do not remedy this situation and keep pace with technological developments (hassan, hassan, 2019). this acceleration and technological development will put the banking and financial space in front of real challenges represented in a world devoid of cash transactions but dealing with digital currencies. consequently, it became imperative for the banking sector to keep pace with these technological developments and deal with them through the development of the banking industry and the investment of modern financial innovations, including financial technology. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 4 www.americanjournal.org from the foregoing, some common concepts of financial technology can be given: it has been defined as the technology and innovations developed to compete with the traditional financial and banking methods when providing financial services, and financial technology in itself is an emerging industry in the field of finance (rasheeda, saeeda, 2019, 8). another financial technology concept is the various services and products that take modern technology and financial innovation as their basis. this technology is characterized by its low costs, ease of use, and rapid access to many individuals (finnish technology report, 2019, 7). it aims to improve the quality of traditional banking and financial service. others defined it as the financial products and services based on modern technology and digitization of traditional banking operations and their transformation from their traditional form to another digitized form. it is subject to the advantages of modern financial technology, which enables it to save time, cost, and effort (omani, hamdosh, 2017, 393). according to the institute for digital research in the polish capital dublin, financial technology is all modern financial inventions and innovations that will develop the financial and banking sectors. these innovations and inventions include a set of digital programs used in financial and banking operations in various banks, including dealings with customers and providing financial services such as money transfer, currency exchange, and other banking operations (mohamed mahmoud, 2018(. from the foregoing, a general and comprehensive concept of financial technology can be given, as it can be defined as (the ability of the banking system to exploit the means, tools, and modern technological innovations and employ them to provide financial and banking services of high quality that contribute to achieving the welfare of members of the community in order to achieve the goals of sustainable development). second: the characteristics of financial technology by reviewing some concepts of financial technology in the previous paragraph, we can discern the characteristics of this technology as follows: 1it is a set of financial and banking concepts, terms, innovations, and methods that provide the appropriate environment for banks and enable them to achieve the desires and needs of customers. 2financial technology is apparent through its previous concepts that it is not a final target for the banking system. instead, it is a means used by financial and banking institutions to achieve their goals, the most prominent of which is the employment of innovative financial tools to serve individuals and institutions. 3as one of the innovative modern financial tools, financial technology is not only applied in providing financial and banking services, but its impact extends to the development of administrative methods in managing banking operations. 4financial technology creates massive databases and enables customers to access these databases and benefit from them in obtaining other banking services without using the routine methods applicable in banks. 5financial technology is a working method for developing financial and banking services and making them available on a large scale to provide financial and banking services to individuals and institutions. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 5 www.americanjournal.org third: the challenges facing financial technology there are a number of challenges facing the application of financial technology, as it is one of the methods of developing banking and financial work. these difficulties or challenges can be summarized as follows (central bank of iraq, 2017, 83) (awqasem, abdel rahim, 2019, 329): 1the fierce competition between a large number of financial technology companies arises due to the presence of a large number of these companies, which seek to provide modern financial innovations, especially in the field of financial and banking work. 2regulatory reporting and compliance requirements within the financial services sector are added to the first challenge financial technology company's face. 3the other challenge is creating a unified work environment that includes banks and non-bank financial service providers to work under a unified regulatory framework that allows indirect matching between borrowers and investors. fintech startups should respect the regulatory considerations imposed by the legislative authorities. 4the main objective of financial technology is to provide a suitable environment for banking work to reduce costs, effort, and time. furthermore, gain more knowledge accumulation of intangible assets that are difficult to evaluate in the capital markets. this creates an atmosphere of uncertainty surrounding the banking and financial industry, raising serious questions about financial coordination at the national and international levels. 5despite the many advantages of financial technology, it may pose a real threat to stabilizing the financial system. global interdependence represents the threat financial technology poses to financial markets and financial instruments. thus, it is reflected in the financial instability due to the role that financial technology plays in the intricately interconnected networks of international transactions. this makes the association rules work passively. the second topic the volume of investments in financial technology across the world the world has witnessed a remarkable development in the volume of investments in modern financial innovations, especially in the field of financial technology (fintech). the volume of investments in financial technology increased from 928 million dollars in 2008 to 4 billion dollars in 2013. then the volume of investments in this field increased to 20 billion dollars in 2015, according to the research company (valuead). the volume of investment in financial technology reached its peak in 2020 when the amount of investments in financial technology was estimated at $46 billion. the following figure shows the development in the volume of investments in financial technology in the world. figure 1 investments in fintech 2008-2020 "billion dollars" source: money of the future report 0.743 1.8 2.4 2.7 4 12 20 19 46 0 10 20 30 40 50 2008 2010 2011 2012 2013 2014 2015 2016 2020 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 6 www.americanjournal.org from the previous figure, the extent of progress in the field of investment in financial technology is evident. investments in fintech increased from $0.743 million in 2008 to $46 billion in 2020. it is worth noting that venture capital companies contribute 24% of the total investments in financial technology. private equity companies contribute 15%. moreover, enterprising investors contribute 12%. also, 49% of other investors contribute to financial technology investments worldwide. it is worth noting that china is one of the most prominent countries investing in financial technology, as the proportion of its investment to 69%. india comes second with 52% of investments. the united kingdom ranked third with 42%. fourth, brazil with 40%. then australia and spain with 37%. finally, mexico with 36% (kitabat website, 2017). the following figure shows the countries that use the most financial technology: figure 2 countries that use the most financial technology source: prepared by the researcher based on previous figures when searching for the reasons for the high percentage of investments in financial technology for these countries, we find that fintech contributes significantly to eliminating old habits of obtaining financing. this obliges the investor to go to the bank and apply for the credit necessary to finance his investments. financial technology also invalidates the old habits of accepting credit cards by companies that require an account with a primary credit provider. financial technology has addressed all those obstacles and searched for solutions to the financial problems of investors outside the traditional systems of banking and financial work. in light of financial technology, finance has become a collective action and a technological revolution in banking operations. through its orientations in developing banking work in iraq, the central bank focused on financial technology to keep pace with the global progress in this field. the central bank has developed instructions for electronic payment operations via mobile phone following the latest and best international practices in this field. it seems that the iraqi market is looking forward to further development in the field of financial technology and through the analysis of some indicators that give a perception of the iraqi digital environment (ministry of planning, central bureau of statistics, and information technology use survey 2011). the presence of an average age of 20 years gives a perception that many iraqi people desire financial technology, which is reflected in the number of social network users. the data indicated that 50% of the iraqi people use the internet. about 50% of 36% 37% 37% 40% 42% 52% 69% mexico spain australia brasil u.k. india china american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 7 www.americanjournal.org the population uses social networks through smartphones. 94% of the population owns a smartphone. the average age in iraq is 20 years, which indicates a tendency to use financial technology. the iraqi telecommunications infrastructure amounted to about 42 out of a 100-point scale. the general index of the iraqi state in the field of growth and development in communications was about 47.5 out of a 100-point scale. some studies (ibtihaj ismail yaqoub, faiha abdullah yaqoub, zainab juma matar, 2021, 68) indicate that most iraqis who use information technology can afford the necessary expenses for financial technology developments in iraq. moreover, 11% of iraqis own bank accounts, of which 2% own credit cards, and 5% of iraqis use e-commerce applications, most of them are men. the iraqi government is trying to establish real partnerships with solid international institutions to build a strong financial technology base. the iraqi government is also trying to provide adequate support to the private sector working in financial technology. the third topic digital finance in iraq and achieving sustainable development goals before shedding light on digital finance techniques and iraq's position among the rest of the region's countries, we must first and foremost refer to the concept of digital finance. digital funding is one of the modern terms used in finance in the twenty-first century. it means "a group of digital financial services in the field of financial information, financial planning, payments, investments and support for joint operations between customers and banks" (raina et al., 2018: 279-307). it is also known as "a group of technology-based products and services, modern technologies to improve the quality of financial services" (dahman, 2020, 63-79). the importance of digital finance is highlighted by the following: 1increasing financial inclusion and financial services for the non-financial sectors. increasing the scope of services, basic services for individuals, especially if we know that 50% of developing societies own mobile phones (world bank, 2014). 2digital finance provides the ability to provide banking services at the lowest costs and securely, especially for the poor classes in developing countries, including iraq. 3it supports the gdp of digital economies by providing platforms that ensure appropriate access to financial products and services for individuals and companies. this improves gdp levels and leads to economic stability (ozili, 2018: 331). 4it provides an increase in the total public spending for the government by providing platforms to facilitate this matter. this leads in later stages to an increase in the expected revenues resulting from the increase in the volume of financial transactions (manyika et at., 2016(. the importance of digital finance and the use of modern financial technologies in achieving sustainable development goals is highlighted through the following: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 8 www.americanjournal.org table 1 the opportunities offered by digital financial services to achieve the sustainable development goals sustainable development goals digital financial services poverty eradication for families with low incomes, digital financial services provide an opportunity to access financial tools and services at the lowest costs and help increase their economic opportunities. zero hunger facilitating access to the financing needed to increase production rates at a lower cost would reduce hunger rates among the poor, and digital financial services provide this advantage at lower costs than traditional financing. good health and well-being the use of modern financial technologies helps expand health services, especially in rural areas characterized by low population density. digital financing allows families and families to better deal with health emergencies good education digital finance has helped low-income families better manage their education expenditures. digital financing also allows the provision of financial resources to support the male and female teachers segment and provide the appropriate educational environment and technologies that will improve the quality of education. gender equality digital finance channels help women to gain more resources and assets in a way that enhances their financial capacity and increases the ability of women to manage their financial assets securely, increase the ability to access their bank accounts, and collect financial data on business owners clean and healthy water one of the most prominent concerns of modern financial technologies and digital finance is to provide digital channels, billing, and payment to reduce operating expenses and secure cash flows, which helps those responsible for providing services to provide a broader supply of healthy water to customers in rural areas. clean energy at reasonable prices one of the most important goals of digital finance is to provide financial systems that will reduce operational costs and thus increase access to energy and expand the area of investment in this sector decent work and economic growth digital financial services allow small and medium-sized enterprises to reduce the costs of dealing with money and increase access to the financing needed to manage these projects industry, innovation and infrastructure digital finance and modern financial technologies contribute to facilitating access to new markets. this drives digital economic growth forward, and digital financial services help grow and innovate, enabling small and medium-sized businesses to build their archive, payment history, and credit scores reducing inequalities undoubtedly, digital finance has a prominent role in neutralizing inequalities, as it provides low-income families with new tools that enable them to increase their income. modern digital financial tools also play a prominent role in increasing the productivity and incomes of rural families by linking those families to economic opportunities outside rural communities. sustainable cities and communities digital finance contributes to the provision of small mortgages, which will facilitate the task of obtaining adequate housing, especially for residents who live in informal settlements responsible consumption and production digital finance provides suitable financing channels that contribute to regulating consumption and production processes, especially for low-income families, and helps them prepare consumption and production plans that fit the nature of low-income families. climate action digital finance helps individuals, communities, and government combats the harmful effects of climate change by preparing plans for those changes, especially by enhancing resilience and stimulating sustainable investments life under water digital finance provides many real opportunities, especially for workers who work in fishing, especially in rural areas, by providing the necessary support and training in a manner commensurate with the preservation of fisheries and the river and marine environment. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 9 www.americanjournal.org life on dry land digital finance contributes to preparing strategies to maintain ecological balance by encouraging green and environmentally friendly investment peace, justice and strong institutions digital finance systems contribute to strengthening the principle of transparency, implementing the principle of the rule of law, and ensuring access to justice for all segments of society contract companies to achieve goals modern digital systems for financing contribute to facilitating the process of building constructive partnerships between institutions, whether at the local, regional, or international levels, by providing financial data and easy access to it at the lowest possible costs. in this context and in light of the efforts made by the arab monetary fund to advance the industry of modern financial technologies and achieve the goals of digital transformation that supports the enhancement of financial inclusion and financial stability and the achievement of sustainable development goals. the fund has designed a general index consisting of 100 percentage points divided into six leading indicators (proposed in weights) that represent the dimensions of the environment supporting modern financial technologies in all arab countries. this helps in drawing up and planning the national policies for each country and taking advantage of the opportunities available in the financial technology industry. the following figure shows the six indicators above figure (3) indicators of modern financial technologies and their weights source: prepared by the researcher based on the arab monetary fund report, 2013 indicators of modern financial technologies 100 % 25% policies and legislation 20% infrastructure financing demand side 14 % talent development 14% 14% providing finance 13% collaboration and partnerships american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 10 www.americanjournal.org the axis of policies and legislation, which represents 25% of the weight of modern financial technology indicators, refers to all laws, regulations, and institutional frameworks responsible for financial activities and their governance, in addition to the necessary national strategies to provide a suitable environment for the work of modern financial technologies. as for the demand side, which weighs 14% of the weight of modern financial technology indicators, it reflects the ability of the banking system and financial institutions to meet the needs of the business sector, such as access to the international information network and everything that would improve work efficiency and reduce its costs. while the axis of providing finance constituted 14% of the total weights of the indicators of modern financial technologies, about the state's provision of the necessary support to facilitate access and financing processes, the axis of talent development constituted 14% of the total weights. this axis indicates the development of the capabilities of workers in the banking sector and refining their talents. in order to generate innovations that serve the modern financial technology sector, the financial infrastructure axis constituted a percentage of 20%. providing an excellent financial infrastructure would achieve the desired use of modern financial technologies. examples include the digitization of payments, modern financial technologies in financial settlements between local and international banks, and the implementation of clearing and trading works. as for the axis of cooperation and partnerships, it constituted 13% of the total weights, and the function of this indicator is to give a perception of cooperation and partnership between all relevant parties such as banks and financial institutions among themselves and with modern financial technology companies and institutions, whether at the local, regional or international levels. with regard to iraq, the data listed in table no. (2) the following indicated its status among the arab countries concerning the six sub-indicators referred to above: table 2 the general indicator and the six main sub-indicators in iraq (%) policies and legislation demand side providing finance talent development infrastructure financing collaboration and partnerships general indicator 0.233 0.267 0.000 0.000 0.243 0.000 14 source: prepared by the researcher based on the technology for development in the arab region bulletin, united nations, escwa, 2019, pp. 85-115. from the previous table, it is clear that iraq is still lagging behind other arab countries, especially the united arab emirates, saudi arabia, and bahrain. these countries achieved general indicators 75%, 65%, 64%, respectively, and occupied the first three arab positions in this field, while iraq ranked before the last with a general indicator of only 14%. sudan ranked last with a general index of 9%. it is clear from the previous table that iraq has not achieved any achievement in the three indicators (financing provision, talent development, cooperation, and partnerships). the percentages of these indicators amounted to (0.000) compared to the rest of the countries that have achieved qualitative leaps in these indicators and made advanced strides in developing the modern financial technology sector. the following figure illustrates iraq's arab position in the indicators of modern financial technologies: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 11 www.americanjournal.org figure 4 iraq's ranking in the indicators of modern financial technology in the arab world source: prepared by the researcher based on the technology for development in the arab region bulletin, a previously mentioned source. in light of the above results, iraq is still lagging in modern financial technologies compared to other countries, which makes iraq lag behind other countries in achieving the seventeen sustainable development goals mentioned previously in table (1). conclusions and recommendations first: the conclusions through the foregoing, the study reached several conclusions regarding the digital finance industry in iraq, the most prominent of which are: 1the results are shown in table (2) reflected a significant decline in the general indicator and the sub-indicators, especially those related to providing financing, developing talents, cooperation and partnerships. 2undoubtedly, modern financial technologies represented by digital finance have become an integral part of the lives of societies and a reality for banking devices because they provided many financial innovations that contributed to the provision and delivery of various financial services to all segments of society. 3from the foregoing, the study concluded that modern financial technologies (fintech) had become imperative to advance the wheel of sustainable development and achieve its goals at the lowest costs. second / recommendations 1the necessity of developing an integrated legislative framework and providing an appropriate and supportive environment for modern financial technologies would increase the chances of achieving tangible progress in the indicators of modern financial technologies. 2working on designing strategies that would develop talents' capabilities and help them with modern financial innovations, as well as the need to take care of youth and university students, and 75 65 64 55 52 41 40 32 28 25 22 18 14 9 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 12 www.americanjournal.org teach modern financial technology subjects, especially in financial and banking departments, to build an experienced generation to work on providing the best banking services. 3working on designing and establishing national platforms related to digital identity and establishing digitized financial systems, especially government payment systems, and private sector payments. references first: arabic sources: 1. central bank of iraq, report on financial stability, 2017, p. 83. 2. ibtihaj ismail yaqoub, fayhaa abdullah yaqoub, zainab juma matar, financial technology as one of the recovery strategies of the iraqi banking sector in the post-covid-19 era: an exploratory study, the second international and fourth national scientific conference, jafs journal of accounting and financial studies, 2021, p. 68. 3. financial technology report in the middle east and north africa, financial services sector trends, 2019, p. 7. 4. hassan taha hassan, (the islamic financial industry reality and challenges), a paper presented to the international conference, institutional integration of the islamic banking and financial industry, hassiba ben bouali university, algeria, 2019, p. 18. 5. rachida zawiya, saida balaour, financial technology and its role in accelerating financial inclusion for sustainable development, the national forum entitled (the financial technology industry and its role in enhancing financial inclusion in arab countries), yahya fares university, algeria, 2019, p. 8. 6. zahra, sayed omar, dahman, ibn abdel-fattah, financial technology as a tool to enhance financial inclusion in the arab world a case study of the middle east and north africa, journal of economic integration, 2020, vol. 8, no. 1, pp. 63-79. 7. arab monetary fund, mobile payment systems / dimensions, and required rules, the arab committee for payment and settlement systems, 2013. 8. omani, lamia, hamdosh, wafaa, "journal of administrative and financial sciences," vol. 1, number 1, 2017, p. 393. 9. abdul rahim, wahiba, awqasem, al-zahraa, financial technology in the gulf countries between the newness of the phenomenon and the speed of absorption, journal of economic 10. studies, 2019, no. 38, p. 329. 11. kitabat, fintech, financial technology has reached the arab countries, iraq is devoid of it, and the emirates and egypt are at the top of their users, publication date, 2017, https://kitabat.com. 12. muhammad mahmoud, the role of financial technology in developing the performance of islamic banks, published article, 2018, https://islamonline.net/1847. 13. technology for development in the arab region bulletin, united nations, escwa, 2019, pp. 85115. second: foreign sources: 1money of the future report, 2020. 2manika, j., lund, s. singer, m., white, o., & berry, c. (2016). digital finance for all: powering inclusive growth in emerging economies. mckinsey global institute, 1-15. https://kitabat.com/ https://islamonline.net/1847 american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 13 www.americanjournal.org 3ozili, peterson kitakogelu (2018), impact of digital finance on financial inclusion and stability, munich personal rebec archive (mpra), university of essex, online at https://www.cgap.org/blog/10-useful-data-sources-measuring-financial-inclusion.( accessed 13 january 2021).p.331. 4raina, v.k. (2014). emerging technologies for user-friendly mobile payment applications. in electronic payment systems for competitive advantage in e-commerce (pp.279-307). igi global. 5the world bank-(2014). "global financial development: financial inclusion, "washington, dc: world bank. https://www.cgap.org/blog/10-useful-data-sources-measuring-financial-inclusion american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 1 www.americanjournal.org the impact of asylum on economic development (jordan case study) dr. dina ahmed omar professor, northern technical university/ technical institute/ninawa/iraq dinaao@ntu.edu.iq a b s t r a c t k e y w o r d s the arab region is located at the crossroads of the continents of africa, asia and europe, and has historically witnessed waves of refugees, and the movement of refugees is one of the most important factors driving economic and social change in the region. asylum has a significant negative impact on economic and social development sectors, such as health, urban development, youth development and gender relations. to identify the positive effects of migration and mitigate its potential negative impacts, a multidimensional and multi-experienced approach is required. this study examines the concept of asylum and its types and the economic development that the phenomenon of asylum leaves on the arab countries, including the experience of jordan, which in turn affects all other variables in this country, the most important of which are the political, social and other aspects. the results of the study found that the refugee phenomenon witnessed by jordan has negatively affected its economic development. asylum, positive and negative repercussions, economic development, jordan. introduction the phenomenon of asylum is one of the ancient phenomena experienced by humanity through different stages of time, regardless of the reasons that produced this phenomenon, which is multiple conflicts, wars, conflicts and disasters, suffered by multiple civilizations and their scourge, but in the modern era the twentieth century was opened with the largest two world wars that left major humanitarian disasters that were of a clear emergence of the phenomenon in the international community and imposed itself in light of scientific, industrial and technological progress, and became clearly visible, prompting specialized thinkers and international law scholars to study this phenomenon and track it and track its results and the reasons that caused it and these studies constituted the basic reference for international law that dealt with this phenomenon at the international level and then took these references at the regional and local level of countries. jordan is one of the countries in the world that has suffered from this phenomenon and has produced a set of pros and cons that have a clear impact on the state. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 2 www.americanjournal.org 2the problem of the study: the problem of this study lies in knowing the variables that affect the jordanian state due to the different and multiple waves of refugees in various political, economic, social and cultural aspects and their role in shaping the total negatives and positives that occur in the environment of the jordanian state. 3study questions: based on the problem of the study, the following questions were: q1: what is asylum, and what does the jordanian state do towards it? q2: what are the most important effects and consequences of the refugee waves on jordan? q3: what is the reflection of this phenomenon on jordanian society? q4: what are the expected future and orientalist scenarios on this phenomenon in jordan? 4the importance of the study: this study reveals the most important aspects that affect jordan and measure their positive and negative effects on the state and society, and highlight its results so that it is easy to deal with this phenomenon within the limits of the possibilities available to the state. 5the hypothesis of the study: this study proceeds from the main hypothesis that there is an inverse relationship between asylum and its repercussions on the jordanian state, affecting economic development and various political, social and cultural aspects based on major variables that in turn control all other variables and have new reflections. 6objectives of the study: this study aims to reveal the impact of asylum on economic development and the most important variables that affect the jordanian state as a result of the multiple and different refugee crises that came to jordan in multiple and complex circumstances and their positive and negative reflection on the jordanian state. 7study methodology: this study imposed itself on two research approaches: the first was the historical method, in which the historical aspects, definitions and types of asylum were reviewed, while the second was the descriptive and analytical approach, which is based on the impact of asylum on economic development in jordan. 8limitations of the study: spatial boundaries: jordan time limits: 1921-2020 human frontiers: the jordanian people and refugees 9concepts and terminology of the study: -asylum positive repercussions negative repercussions economic development -jordan this study will be divided into two sections: the first: addresses some of the concepts and the positive and negative repercussions of asylum. second: the impact of asylum on economic development in jordan. first: definition of asylum and its types linguistically, asylum generally means leaving one country to another, and a person is called a refugee when he takes refuge to live in another land due to injustice or seeking safety, justice, and a better and well-off life, while the population section of the united nations defined asylum as a geographical american journal of business management, economics and banking volume 15 august, 2023 p a g e | 3 www.americanjournal.org phenomenon that means the movement of the population from one area one of the first concepts that adopted theories of asylum is the so-called population balance equation between the different geographical units, as formulated by john s. mills. mills, who assumed that asylum is only a form of population balance between the different global units, or in other words, that asylum helps to relieve population pressure in areas of economic hardship, in return for meeting the needs of the growing geographical units of labor, and thus asylum is considered one of the auxiliary operations to restore the balance between the need for human resources and the availability of capital. while the theory of international trade gave a similar vision of asylum, as it stated that the two countries are not those with equal capabilities and production capacity can enjoy a kind of bilateral exchange of their available capabilities, capital goods and labour. in other words, trade and asylum contribute to raising the income of individuals for both countries. positive content for both parties, whether they are sending or receiving countries alike, and ray rest summed it up for us by saying: the situation in which there is no loser, as the immigrant in moving to another country receives the high wage, in addition to the technical and vocational training that contributes later to the development process in the countries of origin, as for the countries that receive the migrant labor force, in this case they get labor that did not bear any significant costs in its formation. in general, several types of asylum can be distinguished, namely: 1permanent asylum, which is moving from one country to another with the aim of residing and earning forever, such as asylum europeans to australia and the americas. 2temporary asylum, which is moving from one country to another with the aim of temporary residence and earning, such as the refuge of arab workers to the countries of the gulf cooperation council. (salman, 2014, 138) 3illegal asylum, which is the entry of refugees into a country without identification papers or visas and entry permits, prior or subsequent. 4human trafficking, which is the seduction of individuals, whether men, women or children, and facilitating their transfer to another country with the aim of employing them in illegal activities such as trading in organs, drugs or drugs. prostitution (united nations, 2015, 15). 5forced asylum (refugees and displaced persons), which is according to the 1951 united nations convention relating to the status of refugees. a refugee is a person who moves from a country to another outside the country of his nationality because of a well-founded fear of being persecuted because of his race, religion, gender, or membership in a social group. specific or because of his political views (escwa, 2009, 4). second: the positive and negative repercussions of asylum asylum has presented both challenges and opportunities for both sending and hosting countries, and the refugees concerned. there is ample evidence of the complex links between asylum and economic development: first: the positive effects: for refugee-receiving countries, the most obvious benefits are brain gain, without the costs of education and training. xenophobia can be a problem in refugee-receiving countries, which in some cases may american journal of business management, economics and banking volume 15 august, 2023 p a g e | 4 www.americanjournal.org involve physical attacks on non-citizens. this not only negatively affects the social integration of refugees, but also regional integration and interstate relations. second: the negative effects: for refugee-sending countries, some potential negatives associated with asylum include: (a) loss of skilled workers (brain drain) and the consequent negative impact on the quality of service delivery in basic services and reduced growth (b) potential inflation in the local economy due to remittances. on the other hand, the opportunities offered by asylum include the flow of remittances, which are a major source of foreign currency and have the potential to support the international balance of payments, reduce unemployment in sending countries, investments from expatriates, increase the possibility of trade flows between sending and host countries and charitable activities for individuals in the diaspora. and/or city associations that can assist in relief and development (united nations, 9, 2011). among the demographic effects that will affect the population and its increase and increase the volume of pressure on the various structures of the state and its resources, not to mention the social challenges that will overturn many things in society in terms of values, customs and traditions, and the emergence of new social problems as a result of the problems of poverty and unemployment and the new manifestations of this crisis in society and diseases. you join it, as well as service issues, and we do not forget the cultural changes that may occur through cultures, and all of this will inevitably affect "the most important factor, which is the security that preserves the security of the state and its people through the crimes that will follow, with reference to some of the betting operations that took place, and here we stand again facing the security challenge. therefore, given the impact of asylum on the socio-economic landscape in both refugee-sending and refugee-receiving countries, it is the duty of states (and recs) to minimize the negative impact of asylum while maximizing its benefits through deliberate publicization and awareness-raising of asylum issues in refugee settings. development (qarbaa, 2019, 132). mainstreaming asylum in economic development planning entails assessing the effects of asylum on the goals, objectives and activities of national/regional development plans, with a view to improving overall development outcomes. this requires integrating asylum concerns into all stages of development planning, including design, implementation, monitoring and evaluation. this ensures that asylum is seen as an issue that affects all aspects of human development and is embedded in the broader development strategy, thus promoting a coherent approach rather than piecemeal and uncoordinated action. in essence, this process constitutes asylum and development (au, 2018, 37). third: economic challenges: it is difficult to identify and enumerate all the effects, dimensions and challenges that jordan faced as a result of the syrian crisis, which, although it is possible to enumerate, it is not possible to fully define and enumerate its effects and dimensions, and diagnosing all the challenges resulting from it may not be easy for the following reasons: the need to accurately link the causal relationship (causal relationship). difficulty separating the challenges and effects resulting from the syrian crisis and those resulting from other issues such as population growth, poverty, budget deficit, and others. sometimes the inability to determine the beginning and end of the series of challenges and effects. if we take an example of education, health or drinking water, then the cost of the student or the syrian citizen differs from that of the jordanian student or citizen, as the educational level of the syrian student american journal of business management, economics and banking volume 15 august, 2023 p a g e | 5 www.americanjournal.org differs from that of the jordanian student, as well as the syrian need for health services exceeds that of the jordanian citizen in terms of vaccinations and the incidence of chronic diseases. as for water, despite the lower consumption by syrians, the majority of syrian consumption is funded by subsidies. in addition, overcrowding and increased demand lead to a decline in the quality of service and an increase in its cost, forcing the jordanian citizen to search for more expensive alternatives, and this also leads to an impact on the rest of the regions, where suppliers are forced service (ministries) by transferring some employees, resources and water from the unaffected areas to the affected areas to compensate for the large shortage. impacts and challenges can be identified from three basic levels: 1at the macroeconomic level 2at the sectoral level 3on the security level in order to be accurate and to neutralize any abnormal or emergency annual factors, the situation will be compared between equal periods of time before and after the crisis, by comparing the conditions during the crisis period 2011-2016 and the period 2005-2010. fourth: the impact of asylum on economic development in jordan: recourse has been left to indicators of jordanian economic development (gross domestic product, market price in million dinars, per capita gdp in dinars, national exports in million dinars, national imports in million dinars, trade balance (exports-imports), unemployment rate, population, investments foreign affairs, foreign grants, public debt, debt ratio of gdp, per capita share of public debt in dinars, number of tourists, tourism income in million dinars had negative effects on the jordanian economy, as these variables declined during the period (2005-2016). 1at the macroeconomic level: the syrian crisis came at a time when jordan was facing growing financial and economic challenges and problems. table (1) shows the most important macroeconomic indicators and compares the rate of change before and after the crisis. table (1) below shows that the gross domestic product has grown by 110% before the crisis compared to 34%. % after the crisis, and this shows that the growth in the gross domestic product decreased by 69% after the crisis compared to the period before the crisis. the decline in the per capita share is about 116%. as for the trade balance deficit, it increased by 40% before the crisis, while it increased by 7% during the period (2011-2016), and this indicates a decline in the trade balance deficit by 82%. % during the same period. as for consumer prices, they increased by 32% before the crisis, compared to an increase of 11% after the crisis. thus, the rate of increase in consumer prices had declined by about 66% after the crisis compared to before the crisis, and at a time when the unemployment rate declined by 15.5% before the crisis, it increased to 18.6% after the crisis, an increase of about 20% between the two periods. while the population increased before the crisis by 11.7%, it increased in the period after the crisis by 56.8%. this is due to the approval of the results of the population and housing census 2015. as for the value of direct foreign investments, it witnessed a decline of about 15% before the crisis, while it witnessed an improvement of 3.6% after the crisis. as for foreign aid (grants), it declined by about 20% before the crisis. the decline reached about 31% after the crisis. grants and aid increased by 58% after the crisis, meaning that the decline in grants and aid increased by 58% after the crisis. the budget deficit increased by 119% before the crisis, to decrease to 36% after the crisis, and this american journal of business management, economics and banking volume 15 august, 2023 p a g e | 6 www.americanjournal.org constitutes an improvement of 131% when comparing the two periods. while the public debt increased by 53% for the period before the crisis, this percentage increased to reach 95% after the crisis, i.e. an increase of 79% between the two periods. as for the debt-to-gdp ratio, despite its decline during the period before the crisis by approximately 27%, it increased by 45% in the post-crisis period, an increase of 266%. and that while the per capita share of the public debt increased by about 37% before the crisis, the increase decreased to 24% after the crisis, and this is due to the large increase that was approved in the population census for the year 2015. as for the tourism sector, the number of tourists increased before the crisis by 159% while the number of tourists decreased by 22% during the period after the crisis, and this constitutes a decline rate of 120% between the two periods. at a time when tourism income increased by 149% before the crisis, it increased by 18% after the crisis only, i.e. a decline of 88% between the two periods. bat the sectoral level: 1education: the education sector, especially in the northern and central regions of the kingdom, is one of the sectors most affected by the syrian crisis, and this is represented by the following: direct financial burdens on the general budget and the ministry's budget. decreased level of education. increased problems and violence among students. additional costs for jordanian families. it is worth noting that the number of syrian students has reached about 125,000 students during the year 2016, and since the average cost of a syrian student in various stages is estimated at about (840) dollars, the financial cost of syrian students in government schools is approximately (103) million dollars. table (1) the most important jordanian macroeconomic indicators economic indicators 2005 2010 percentage change 20052010 2011 2016 percentage change 20112016 the difference between 2005-2010 and 2011 -2016 change between 2005-2010 and 2011 -2016 gross domestic product at market price (in million dinars) 8925 18762 110% 20477 27445 34.0% -76% -69% gdp per capita (in dinars) 163081 306920 88.2% 3276.25 2801.07 -14.5% -102.7% -116.4% national exports (in million dinars) 257021 4216095 64.0% 4805087 4369.33 -9.1% -73.2% -114.2% national imports (in million dinars) 744286 11050.13 48.5% 1344022 1363.99 1.5% -47.0% -97.0% trade balance (exportsimports) -4873 -6833 40% -8634 -9268 7% -32.9% -82% consumer price index (2010100) 75.8 100.0 31.9% 104.1 115.50 10.9% -21.0% -65.9 unemployment rate 14.80 12.5 -15.5% 12.9 15.30 8.6% 20% 200% population in millions 5.47 6113 11.7% 6.25 9.80 56.8% 45.1% 385.5% direct foreign investments (in million dinars) 1407.00 1197.07 14.0% 1055.00 1092.60 16% 18.5% 123.9% external grants (in millions of dinars) 500.50 401.70 19.7% 1215 816.00 31.2% 11.5% 58.3% budget deficit including grants (in million dinars) 477.50 1045.22 118.8% 1382.75 878.9 36.4% -155.2% 130.7% public debt (in millions of dinars) 84% 61% -27.2% 65% 95% 45.3% 72.5% -266.1% debt ratio of gdp 84% 61% -27.2% 65% 95% 45.3% 72.5% -266.2% per capita share of public debt 1369.23% 1875.07 36.9% 2144.27 2662.99 24.2% -12.8% -34.5% number of tourists 338.79 707.79 108.9% 419.57 327.66 -21.9% -130.8 -120.1% tourism income in million dinars 1021 2545.18 149.1% 2431.5 2870.90 18.1% -131.1% -87.9% american journal of business management, economics and banking volume 15 august, 2023 p a g e | 7 www.americanjournal.org the above table was prepared by the researchers based on the data of: united union, jordan response plan for the crisis (2018-2020). mopic, p51-52 2energy: jordan is an energy insecure country that imports 96% of its energy needs. the sudden increase in population due to the influx of refugees has increased the need for energy, not only for domestic consumption, but also for the sustainability of the provision of services, such as education, health and water. it is estimated that during the first five years of the crisis (2011-2015), the cumulative government subsidies for petroleum and electricity totaled $7.1 billion. according to the latest statistics, total residential electricity consumption increased by 34% between 2011 and 2016, while lpg consumption increased by 17% from 370,000 tons in 2011 to 433,000 tons in 2016. moreover, refugee camps are not stable. power connection. the energy sector aims to provide clean, safe and affordable energy sources to both syrian refugees and jordanian communities through interventions within refugee camps and host communities alike. responses should align with and build on jordan's planned new strategic investments within jordan's comprehensive campaign for sustainable energy solutions. therefore this response plan has been developed with projects that will meet additional loads through renewable energy and energy efficiency (re&ee) technologies and solutions. raising awareness about energy saving and sustainable consumption, while building on existing capabilities and initiatives, is also a priority. 3environment: the syrian crisis caused a number of negative environmental impacts on jordan. for example, overgrazing and unsustainable agricultural practices, including gathering medicinal plants and logging, have increased. the royal department of environmental protection reported violent incidents including 177 bushfires, 25 logging, and 22 overgrazing during the period from january 2016 to january 2017. examples include the growing trend of illegal logging to compensate for higher fuel prices, and overgrazing of livestock due to the high cost of fodder and the unmet food needs of the jordanian population and refugees, which is also reflected in the poaching of wildlife as families look for cheaper alternatives to domesticated meat sources such as chicken and lamb. moreover, the annual production of hazardous waste in jordan was estimated at 45,000 tons/year in 2015. the average production of pharmaceutical waste increased by 250% compared to the pre-crisis period. 4food security: jordan is rated at low risk in the 2017 global hunger index with a score of 6.7.8 nationwide, and 6.2% of jordanian households are considered food insecure and vulnerable to food insecurity. however, these figures mask a stark worsening trend, with food insecurity as high as 26% in some pockets of poverty, and more than 70% of syrian refugee families in host communities remain either food insecure or vulnerable and semi-dependent. full on food aid provided by the international community. growing demand for food increased consumer food prices by 15.56 points between 2009 and 2016. 5health the health sector in jordan continues to face increasing needs and vulnerabilities with continued demand for services from refugees, changing disease epidemiology, and increasing rates of determinants of poor health. rising healthcare costs, for both services and supplies, also raise issues of sustainable financing mechanisms for this increased demand. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 8 www.americanjournal.org more than half of syrian households suffer from severe or severe impairment of health, while about a third of the jordanian population does not have access to comprehensive health insurance coverage. the health sector response strategy will focus on providing durable solutions by continuing to meet the immediate and short-term health needs of refugees while strengthening the national health system thus enhancing resilience. therefore, the response includes a range of activities from direct interventions that ensure that the critical short-term needs of jordanians and syrian refugees are met, through support for primary, secondary and tertiary health services in camps, rural and urban settings, and systemic investments that strengthen the capacity of the national health system. the response also aims to build the resilience of the public health system through investments in information management and logistics systems. (united union, 2018,18) 6justice: the jordanian judicial system faces a number of challenges exacerbated by the syrian crisis. in particular, the courts, legal staff and associated support services have been strained by a growing caseload associated with the large influx of refugees, many of whom lack important legal and civil documents such as birth, marriage and death certificates due to loss or damage in syria. 7livelihood: since 2016, the jordanian government has made a number of policy shifts to create an environment conducive to achieving the goals of the jordan compact 13. this includes allowing syrians in camps to obtain jobs in host communities, providing pathways for refugees working in the construction and agricultural sector to obtain work permits without sponsorship, and extending grace period until the end of 2017 for work permit fees. however, disruptions to the macroeconomic environment due to the closure of regional trade routes, the persistence of a strong informal labor market, and low labor force participation rates are undermining jordan's ability to stimulate internal economic growth. besides, refugees still need opportunities that provide them with immediate cash injections as well as training possibilities to equip them with skills to provide added value to the labor market. given jordan's complex array of macro and micro economic development and humanitarian challenges, the response plan is designed to meet the immediate livelihood needs of vulnerable syrian refugees and host populations, while addressing institutional and environmental shortcomings that impede full implementation of the jordan compact goals. (international labor origination, 2016, 9) conclusions: and it was as follows: 1the influx of refugees affected all development plans and increased the population, which constituted a major pressure card on the infrastructure in all aspects. 2increasing internal problems such as poverty, unemployment, crimes, and others. 3clear pressure on the various state agencies, especially the security ones. 4the presence of a permanent state of stability by the refugees in jordan, and this will exacerbate various internal problems in the economic, social, political, cultural and other aspects. 5there is no doubt that the new refugee communities will appear with new social and cultural phenomena. 6putting pressure on the state budget and its sources of income and expenditures. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 9 www.americanjournal.org 7the political dealings with asylum and refugees make the state's behavior in its external environment fall within internal and external balances. 8the reflection of the reality of refugees on jordanian society. 9the obvious impact on the various levels of economic development. recommendations: the recommendations were as follows: 1formation of a special body related to the study of issues of asylum and refugees. 2finding new strategies that would not affect society due to the presence of refugees. 3industrial investment encouragement to accommodate various unemployment issues. 4enhancing the security role in preserving all state facilities. 5cooperating with the countries of the region in order to find successful solutions to this situation. 6the situation of the international community with the hardships that jordan endured due to the refugee crises. sources: 1. salman, haitham abdullah, kuwait economic magazine, twenty-fourth issue, eighteenth year, 2011. 2. qirbaa, muhammad khair farhan, “the security challenges facing jordan in light of the syrian refugee crisis,” 2019. 3. escwa, prevailing trends during conflicts and their repercussions, united nations, new york, 2009, pg. 4 4. african union, revised africa migration policy framework and action plan (2018-2027), 2018 5. hindu, megan, linking refugee protection to development and policy recommendations for implementing the development-displacement axis approach, 2019. 6. the united nations economic and social commission for western asia, international migration and development in escwa countries: challenges and opportunities, 2011. 7. the united nations, international migration report 2015, migration, displacement and development in a changing arab region. 8. united uonin,jordan response plan for the crisis (2018-2020).mopic,p5152http://www.jrp.gov.jo/files/jrpexecutivesummaryfinal.pdf 9. international labor origination, work permits and employment of syrian refugees in jordan. 10. https://www.ilo.org/wcmsp5/groups/public/---arabstates/---robeirut/documents/publication/wcms_559151.pdf http://www.jrp.gov.jo/files/jrpexecutivesummaryfinal.pdf https://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_559151.pdf https://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_559151.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 163 www.americanjournal.org the role of corporate governance in reducing the negative impact of creative accountingon the reliability of the interim financial information lina khalid jaafer ibrahim leenakhalid679@gmail.com mohammed a. alhasan mohammed aeshah a. kareem abdulsattar iraq iraqi university college of administration and economics a b s t r a c t k e y w o r d s the importance of the study stems from the importance of the topic of governance corporate and creative accounting and reliability of the interim financial information as one of the important and relatively recent topics., especially in relating of the companies’ administrations using creative accounting methods to show the result of the activity of those companies according to what they were looking forward to as short-term goals, even if it was on account of other departments, which led to the financial crisis as a result of the collapse the bankruptcy of some of the world's largest companies. so, this study dealt with the concept of creative accounting, the factors that contributed to its emergence, and motives, the most important methods used in the financial statements and the most important actions to detect accounting creativity and limiting it, as corporate governance came at the forefront of these measures, after the iraqi reality has been highlighted. the study concluded a set of results, the most important on the existence of a role of corporate governance in limitation the negative affect of creative accounting on the reliability of the interim financial statements, iraq has not yet committed to applying principles of governance corporate despite its role in limitation creative accounting practices. the study came out with a set of recommendations, the most important of the recommendation to update and develop regulations and laws to keep step with the requirements of governance, a developed guide includes the most important principles that must be adhered to and stipulates penalties in case of violation. it also recommended conducting studies related to strengthening the ethical aspects of accountants and auditors to reduce the manipulation and practices of creative accounting and emphasizing on role of company’s boards of directors, also should consider when forming members of the audit committees, they have practical experience and technical qualifications in the field of accounting and auditing. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 164 www.americanjournal.org introduction: it has not passed long time from the appearance of the era of globalization and the emergence of the economic knowledge and the dominance of technical information and communications over the world, the openness of the market and e-commerce until major events emerged on its arenas, including business failures, the collapse of major companies, financial corruption and shortcomings in management and oversight, despite the efforts made by international organizations and bodies to set regulatory frameworks that depend on independence, accountability, transparency and comparability and the accompanying development in the intellectual framework in accounting and auditing standards, but globalization is fast-tracking towards the change has been led to take away the administrative, social professional values and ethics. some of those in charge of the management, stakeholders, directors in companies found a chance to fraud the companies ‘treasury by inflating and manipulating the numbers and showing false successes and fake ratios in an attempt to raise stock prices in the financial markets or to keep them high, therefore, many ideas and proposals for development and regulation appeared from the skilled accountants and auditors but managing and directors board prevented these ideas and solutions from coming in reality, so the catastrophes of collapse came to emphasize the need to the professional restructuring and reconsidering the provided services on the one hand, and focusing on corporate governance systems and management standards behaviors on the other hand. to reach to the financial stability, which is one of the most fundamental goals of the international community, where it has become a general and urgent necessity imposed by the expansion and intertwining of economies. for all the above, the issue of corporate governance has become one of the important topics that imposes, especially in the companies and international organizations that seek to avoid the risks of default and financial failure, as well as its role in maximizing the market value of the company to ensure its growth and continuity, and thus providing performance standards to detect cases of data manipulation. this concept is based on three main pillars represented in risk management, disclosure, and control in turn, contributes as a line of defense towards the creative accounting practices and repurposing sharpness in the wave financial statements to serves a wide range of internal and external users. the first topic: research methodology and previous studies first: the problem of the study: the spread of profit management has led to misinformation and the blurring of facts, which has result ed in many scandals and collapses of major international companies. the concept of governance has spread and is expected to be able to give its effective implementation, to limit innovative accounting practices. of course, it can play a m ajor role in dispelling investors' and stakeholders' concerns about the credibility of financial stateme nts. based on the foregoing, the problem of the study is to find an answer to th following questions: 1how does the application of corporate governance principles reduce the negative impact of creative accounting on the reliability of interim financial statements? 2how does the application of corporate governance mechanisms diminish the negative influence of creative accounting on the reliability of interim financial statements? american journal of business management, economics and banking volume 12 may, 2023 p a g e | 165 www.americanjournal.org 3has the government authorities in iraq presented the strategy of governance to reduce creative accounting practices on the reliability of interim financial statements? secondly: objectives study: the objectives of this study can be defined as following: 1to deepen knowledge of creative accounting and the risk and motivation of its practice. 2attempt to demonstrate the extent to which corporate governance contributes to increased confiden ce among different stakeholders in companies' financial statements and reports. 3identify the most important innovative accounting methods used in the preparation of the inte rim financial statements. 4to identify the role of auditors in restrictive the creative accounting procedures practiced in the preparation of interim financial statements. 5to learn how the application of the governing council's responsibilities principle has limited t he effects of creative accounting on the reliability of interim financial statements. third: study hypotheses: the research is based on the premise "there is no graciously significant relationship between applying corporate governance principles and reducing the negative impact of creative accounting on the reliability of interim f inancial statements" fourth: the purpose of the study: the importance of scientific study stems from the position of corporate governance and creative accounting as significant and relatively new topics, especially since the managements of companies use creative accounting methods to show the results of the activities of companies according to what they were looking for as shortterm goals, even at the account of other groups. this led to the financial crisis because of the collapse and bankruptcy of a group of the greatest global companies. this study is also important in general by addressing governance from a different perspective than pre vious scientific studies. the study will deal with governance from a different perspective, linking innovative accounting practices to governance mechanisms and principles. fifth: previous studies: a-study (al-mousawi and al-zarir,2016) entitled: "the extent to which the expertise of certified accountancy experts in lebanon is sufficient to detect creative accounting practices from the point of view of the experts themselves". this study was published in the journal of al-baath university in chickpeas. this study aimed to know the opinion of certified accounting experts in lebanon about the adequacy of their practical experience to reveal the creative accounting practices practiced by companies in lebanon. the research concluded that the certified accountancy experts in lebanon believe that their experiences are sufficient to discover creative accounting practices, and that their discovery capacity increases by increasing years of experience and professional certifications they have obtained. while the researchers' opinion was that professional certificates are necessary to adequately familiarize american journal of business management, economics and banking volume 12 may, 2023 p a g e | 166 www.americanjournal.org accounting experts with international accounting standards, professional experience enables them to discover cases of manipulation of financial statements that take place through creative accounting practices and methods. b-a study (gereh et al.,2015) entitled: the effect of accounting mechanisms for governance in limiting creative accounting practices, from the perspectives of public shareholding industrial companies in jordan and external auditors.” this study was published in the jordanian journal of business administration in jordan. this study aimed to demonstrate the impact of accounting mechanisms for governance to reduce the negative effects of creative accounting practices in industrial joint stock companies in jordan. has recommendedthe study concluded that the companies’ adoption of accounting mechanisms for governance will contribute significantly to revealing creative accounting practices, which will positively affect the quality of financial reports and the effectiveness of the control process, and this is achieved provided that some of the shortcomings that the study showed for some of these mechanisms, and one of the most important recommendations of the study is the necessity of strengthening accounting mechanisms for governance and urging companies to apply them, because of this proposal’s role in increasing transparency and disclosure, which helps reduce creative accounting practices, in addition to the importance of coordination between internal audit, the board of directors and external audit in order to manage risks and control them. c-a study (odia & ogiedu, 2013) entitled: corporate governance, regulatory agency and creative accounting practices in nigeria. this study was conducted. and published in nigeria. the study aimed to show the effect governance companies the regulatory activities of accounting standards over creative or creative accounting practices in nigeria, and may this study was intended to demonstrate aspects of creative accounting that help pave the way for measuring and determining income, yet it has been oil to a on the statement of its negative aspects, especially when the objective of its practice becomes to deceive or convey false information to users of corporate reports and to demonstrate the profitability of companies and a deceptive and untrue financial position. has recommendedi have not studied untile from disadvantages of regulatory activities of accounting standardsanit allows for alternative accounting and creativity, and this gives an advantageunlessto be manipulated by the contributors offinancial datanot for the benefit of users of accounting information, especially when there is a weak and inadequate regulatory mechanism to verify these violations. therefore, standards and regulatory controls for corporate governance should be strengthened and established to reducecreative accounting practicesamong its effects on the management and accounting of companies, means must be devised and clarification of the organizational activities of accounting standardsin order tofit to work in nigeria, in addition to penalties and fines, to crack down on creative accounting practices in nigeria. dr-study (hwang, 2010 lin &) with the title: audit quality, corporate "governance, and earnings management this study was conducted and published in the united states. this study stemmed from the results of previous accounting studies that dealt with the impact of audit quality and corporate governance variables on earnings management practices, by studying the relationship between these variables. andmay be recommendthe study escaped from its analysis of previous research data thatthe variables related to corporate governance represented by the independence of the board of directors and its experience have an inverse relationship with earnings management, and alsothere is an american journal of business management, economics and banking volume 12 may, 2023 p a g e | 167 www.americanjournal.org inverse relationship between the independence of the audit committee, the size of the committee, the number of committee meetings and its experience, and the behavior of earnings management, as andrecommendi have not studied untilthe audit quality variables represented in the extent of the client’s relationship with the auditor, the size of the audit office, the independence of the auditor, are all factors that limit the behavior of the earnings management within the company. the second topic: the general framework of the concept of corporate governance the first axis: the origin and concept of governance. or not: origin and development of governance: despite the modern use of this term, its appearance dates back to the beginning of the nineties of the twentieth century, when the use of this term increased widely in the last years of it, and it became popular in use by rather, experts, especially those working in international, regional and local organizations, for the theoretical and historical basis of corporate governance is due to the agency theory.(agency theory), which dates back to the american berle and means in 1932,wherenote that there is a separation between the ownership of the company's capital and the process of control and supervision within the corrupt companiesthis chapter has implications for the company's performance(abdel-aal,hammad, tariq, 2008p. 55). then came the turn of the americans who won the nobel prize in economics jensen and mackling delicious we were interested in the concept of corporate governance and highlighting its importance in limiting or minimizing the problems that may arise from the separation between ownership and management, which was represented by the agency theory.what is the definition of this theory in 1976?h:"we are nihe defined agency theory as a relationship in which the main person, who is the owner of the capital, resorts to the services of another person, the worker, in order to perform some tasks in his stead"(al-khashawi, ali and others.2008, p. 19). secondly: governance concept: that governance term companies are the abbreviated translation of the term corporate governance, motherthe scientific translation of this term, which came accept it, she is “the method of exercising the powers of good management,” and the definitions provided for this term have varied in many waysthey differ in their views, as well as the overlap of this concept in many organizational, economic, financial and social dimensions of companies. reorganization for economic cooperation and development (oecd) governance that “a set of relations between those in charge of the company’s management, the board of directors, shareholders and other shareholders’". as such international finance corporation (ifc) thatha: "the system through which companies are managed and their business controlled. corporate governance is the art of managing a network of relationships between various parties and stakeholders, through corporate strategies and performance, which from during the division of powers and responsibilities between the parties. (suleiman, muhammad mustafa, 2008,p. 5. and there are those who know: “an integrated system of financial and non-financial control through which the company is managed and monitored in order to achieve its objectives and adhere to standards of integrity and transparency. from the previous definitions, it can be said: the corporate governance is that system that was concerned with developing the applications and sound practices for those in charge of managing and organizing the company, in a manner that preserves the rights of shareholders, bond holders, company employees, stakeholders and others, through the implementation of formulas for the relations that link them using sound financial and accounting tools in accordance with disclosure and transparency american journal of business management, economics and banking volume 12 may, 2023 p a g e | 168 www.americanjournal.org standards. therefore, every company should aim to achieve growth and continuity and ensure a continuous process of creating appropriate values for the sum of its internal units and external it has, in addition to ensuring respect for the legislative rules and work ethics within them, to adhere to the application of the concept of governance, which means a set of internal systems, policies and laws that aim to achieve its strategic objectives.(suleiman, muhammad mustafa, 2009,p. 13). third governance characteristics and pillars (victory,ali, abdul wahaband others, 2007,p. 1112). 1-governance features: they are the features that must be available in corporate governance and help to integrate their intellectual aspects. the term governance includes the following characteristics: independence: is the characteristic that reduce or eliminate conflicts of interest such as the dominance of a chief influence on the company or a large shareholder on the board of directors, and this mechanism starts from how to form boards and appoint committees to appointing an auditor, so that it does not allow any influence on the decisions of the board of directors and the company's business. bjustice and fairness: it is the respect and recognition of the rights of all parties with interests in a manner that ensures equality between them, and among these parties are the interests of the minority shareholders. accountability: the corporate governance system allows the board of directors to be held accountable to shareholders monitor management and provide advice and guidance to the board of directors on how to set strategies and objectives. to achieve this, effective mechanisms must be in place that allow employees to be held accountable and to punish executive members and members of the publican board of directors, and to achieve transparency and fair dealing in shares by members of the board of directors. 2-governance pillars: corporate governance rests on three main pillars, which are: for the following: ethical behavior: which ensuring behavioral commitment by adhering to the ethics and rules of rational professional conduct, balance in achieving the interests of all parties associated with the company, and transparency when presenting financial information. bcontrol and accountability: it is related to activating the role of shareholders and stakeholders in corporate governance, through their oversight and accountability. whereas parties subject to accounting accountability to shareholders and the stakeholders are mainly represented in the board of directors, subsidiary committees such as the audit committee, senior management, internal audit and external audit. crisk management: it is related to risk management to protect its various stakeholders and raise its financial performance. fourth: the importance of governance: 1the importance of governance stem from bringing a range of benefits for the company and investor, the state, and the economy in general, where corruption and mismanagement are fought, which leads to the reform of the economy comp, reduce the cost of the capital, attracting foreign and local investments, limiting capital flight abroad, and ensuring a return for investors american journal of business management, economics and banking volume 12 may, 2023 p a g e | 169 www.americanjournal.org the proper application of the principles of corporate governance also helps to achieve a rate high and sustainable growth that is equitable because it leads to:(abuselim, khalil,2014, p. 48). a-activating the money market, mobilizing savings, and raising investment rates. b-increasing the ability of companies to obtain financing, and thus the possibility of increasing employment and employment opportunities within the community. c-encouraging the growth of the private sector and supporting its competitiveness. d-protection of minority rights. h-increase confidence in the national economy. fifth: the importance of governance: many studies address the objectives of corporate governance, and it has been shown that it aims to achieve the following:(ismail, mujbil, 2014, p. 50) ato separate between ownership and management and control over it and its performance. b-improving the economic efficiency of companies. c-find the structure that identify through which the objectives of the company and the methods to achieve those objectives and follow-up. d-avoid mixing the duties and responsibilities of the executive directors, the tasks of the board of directors and the responsibilities of its members. h-evaluate the performance of senior management, enhance accountability, and raise the degree of confidence. and protecting the rights of shareholders in general, whether a minority or a majority, and maximizing their returns. g-preventing the exploitation of the available powers from the investigation i-legal gains and trading in the interests of the company and shareholders and stakeholders. the second axis: the general framework of the concept of creative accounting: or not: the emergence and development of creative accounting: creative accounting, or fraudulent accounting, as some call it, is an event born in the eighties of the last century, and it may have started when companies faced difficulties in the recession that prevailed in the era of the industrial revolution, where there was pressure to achieve better profits at a time when it was difficult to make profits, and when companies discovered thatlaws only tell you what you cannot do, not what you can dobehold, if she cannot earn profits, she can at least invent them(blah, syed abdul rahman, 2012,p. 31). accounting has a behavioral and ethical aspect based on not giving priority to certain interests of business owners over the interests of other categories of what is known as the impartiality of the accounting policy, but the presence of unethical creativity that aims to mislead certain goals and show an unrealistic picture of the financial position in order to achieve specific goals, whether for members of the board of directors or owners or stakeholders, by inventing ways accurate accounting methods, taking advantage of some accounting policies or loopholes, are called methods and creative accounting practices(tijani, with elegance, 2012, p. 44). secondly: creative accounting concept: many definitions of creative accounting appeared in the various accounting literature, despite their differences in expressionai agreed on the content, except in a few cases where some books are rejectedab academics introduce manipulation within the definition of creative accounting. the following is a set of definitions, each based on the point of view of its presenter:(helles, salem abdullah, 2002, p. 19) american journal of business management, economics and banking volume 12 may, 2023 p a g e | 170 www.americanjournal.org considered griffiths creative accounting is synonymous with fraudulent accounting as it involves accounting techniques that allow companies to incorrectly report their financial results. the reality of its commercial activities. and. nakedi saw thatthis is the process of manipulating accounting numbers by adopting the advantages of ambiguity in the rules and choosing disclosure and measurement practices among these rules to change the financial statements from what they are to become in the way he desires, prepared this data (cohen, jeffrey et al, 2004, p35). third; the factors that helped the emergence of creative accounting. a group of factors that contributed to the emergence of creative accounting gathered in the financial statements of business establishments, the most important of which are: 1-freedom of choice for accounting principles: company accounting rules and policies sometimes allow to choose among the various accounting methods that you use in preparing its data financial, where many accounting standards allow to choose among the various accounting alternatives, and this results in the company choosing the accounting methods that fit with its goals and desires and that achieve the best picture of the company’s performance(hamada, rasha, 2010, p. 36). 2-freedom of accounting estimates: appreciation in the language is the meaning of evaluation radical estimation is the process that includes measurement and judgment, an accounting estimate is when the accountant notes an approximate value of an amount related to a particular item in the absence of an existing accounting measurement. judgment, as the preparation of some accounting operations includes a high degree of discretion, personal judgment, and judgment, this allows management to manipulate these estimates in order to reach predetermined goals(khalil, muhammad, 2003p. 14). 3the timing of the actual execution of the operations: controlling the execution timing and occurrence of some real operations can result into achieve the desired impression of accounts and data the company’s finances, if left to the management the freedom to carry out some operations at the time it deems appropriate. the implementation of these operations may be delayed or acceleratedfor its implementation, in order to achieve certain goals and gains (darwish, abdel nasser, 2003, p. 96). fourthly; motivations for using creative accounting methods: there are many factors and motives behind its use a creative accounting methods and practices, and one of the most important reasons is to show the financial position of the facility better than it is, than some managers believe that investors focus only on short-term financial gains extended, which made them seek to adjust the profits declared by using creative accounting methods and practices(rihawi, maha, 2009p. 54). the conflict of interests between the different parties is a major reason for the emergence of creative accounting, as the interest of managers is based on reducing taxes and increasing the remuneration of managers, while the shareholders have their interest in maximizing the return on investment, and the interest of the employees lies in increasing the administrative compensation, and the official and from outside the business establishment, they want to collect more taxes or they want to collect their money, so the multiplicity of interests and their conflict causes the spread of creative accounting(almoussawi, hassan and al-zarir, rania, 2016, p. 14). management's purposes for using creative accounting are limited to move following watts:(mohamed hassan, bushra, 2012pp. 57-58) american journal of business management, economics and banking volume 12 may, 2023 p a g e | 171 www.americanjournal.org 1tax evasion: tax evasion is one of the main management motives for using creative accounting with the blessing of the main owners and in cooperation with the external auditor. 2-personal gain: counting personal gains as one of the most important management motives for using creative accounting in cooperation with the external auditor and at the expense of all categories. 3-fulfilling the necessary requirements: maintain market share and meet competitive requirements when its operating and investment conditions do not allow this to be achieved. 4-obtaining or maintaining financing: when businesses suffer from liquidity problems necessary to continue operational and investment operations resort to refinancing through financial institutions by providing financial bank fulfills the financing conditions imposed by financial institutions (mobaideen, tarek and abdel moneim, 2010, p. 32). and see researcher that creative accounting is behavior no ethically to follow serious practices and violations to achieve the goals and objectives of a particular group at the expense of other groups, because several motives, including conflict of interests between different parties and the multiplicity of accounting alternatives in accounting measurement, estimation and disclosure provided by accounting standards (al-qutaish, hassan and al-sufi, 2011p. 98). fifth: creative accounting practices and ethics for the accounting profession; defines professional ethics asthis is the system of ethical principles and rules of practice that have become standardized see for professional behavior, every profession has its own ethics that were formed and gradually developed over time until it was completedit has been recognized and has become morally and legally approved. therefore, there was a need to develop regulations for the practice of various professions, especially the practical ones such as accounting, so that these activities include the foundations, duties and rights that must be adhered to when practicing a specific professional work. (ali, mustafa abdul-hussein andothers2013, p. 65). the basic principles of the international code of ethics for accountants state that hallmark of any profession acceptance of its responsibilities to the public, and with regard to the accounting profession, the public includes all of the customers, donors’ credit, governments, employees, investors, units economic, and the financial markets and everyone who depends on the objectivity and integrity of accountants to maintain the continuity of business nature. accreditation imposes on accountants the responsibility to maintain the interest of the public, which is known to be the good situation of individuals and economic units served by the accountant. it is in the interest of accounting to be clear to the beneficiary of its services by implementing the highest levels of performance and in accordance with ethical requirements that seek to ensure this level of performance. (shariqi, omar, 2015, p. 32). the third axis: the concept of interim financial reports and the approved entries for their preparation. first: the concept of interim financial reports: interim financial reports are one of the sources of obtaining appropriate accounting information for making economic decisions from shareholders and other stakeholders in joint stock companies, especially joint stock companies listed in the financial markets. unlike annual financial reports, these companies issue financial reports covering an interim period during the fiscal year. usually they are semi-annual or quarterly, and the attention to this type of reports is due to the pressures exerted by shareholders and other economic decision-makers with the aim of identifying the results of the activity and financial position of the investee companies on a american journal of business management, economics and banking volume 12 may, 2023 p a g e | 172 www.americanjournal.org regular basis instead of waiting until the end of the financial year to obtain the necessary information for those decisions (abu hamam, majed ismail, 2009, p. 66). interim financial reports were also defined as “a set of financial statements or reports that are prepared for periods of time less than the financial year, and that period may be three months (quarterly financial reports) or six months (semi-annual financial reports).” there is usually a relative identical in the type and form of annual financial reports and interim financial reports, and the dispute is sometimes determined in the time period covered by each of them and the timing of their issuance, and therefore the interim financial reports as a means of disclosing interim information are prepared in a similar manner to the annual financial reports in accordance with the accounting principles applied when preparing and publishing those same reports for the purpose of achieving consistency between the interim financial reports from clear, focused and quickly understandable information, the interim financial reports represent:(agha, imad, 2011pp. 77-78) providing appropriate accounting information to rationalize investment and credit decisions taken by current and prospective investors, creditors and creditors in a timely manner and throughout the financial year, on a temporary basis, often quarterly. the accounting information contained in the interim financial reports helps the users of these reports to estimate the size and timing of the expected cash flows and the degree of certainty related to them, as the net cash flows are an indicator of the company’s ability to meet its external obligations such as paying dividends and loan interest, and these flows also reflect the company’s ability to finance its needs operating in a manner that leads to profits and thus the increase in the prices of its shares traded in the stock market. interim financial reports provide information on evaluating the company's performance and its earning ability during the period for which the interim financial reports are prepared and with the help of investors in estimating the future expectations of the company's performance. secondly: the importance and objectives of the interim financial reports: that important interim financial reports stem from the importance of the annual financial statements that affect the qualitative characteristics that must be characterized by accounting information, including what is related to the appropriate timing feature that must be available in the accounting delivery process, as the timing of issuing the interim report affects the decisions of investors and stakeholders with the organization to take their investment decisions, as if the information is not delivered in time, it will lose its value and become ineffective. for the information to be relevant, it must have the following sub-characteristics:(brahmin, sweater, 2014p. 10) timing the appropriate: the information should be available to the decision maker before it loses its value and ability to influence the decision. ability predictive: the user of accounting information exercises a kind of forecasting when making an investment decision, by making predictions about the results of past, present or future events, or confirming or correcting previous expectations. thus, accounting information has a high predictive power. the accounting information be free from errors and bias and that it faithfully presents the economic events, and then the user of the accounting information becomes confident and can rely on it. third: goals interim financial reports: the goal of interim financial reports is to provide sequential and temporary estimates of the organization’s performance, and because the interim report american journal of business management, economics and banking volume 12 may, 2023 p a g e | 173 www.americanjournal.org period is a short period, so the effects of errors in estimation and allocation were large, and for the appropriate allocation of annual operating expenses is a matter of great importance, because progressive tax rates are applied to gross annual income, and therefore the tax burden varies greatly, and it is difficult to determine the quarterly income tax burden, in addition, one interim period is often charged with operating expenses while all quarterly periods benefit from those expenses. the impact of seasonal fluctuations and time-to-market conditions determine the reliability, comparability, and predictive power of the interim financial reports. (beydoun, alaa and onesi, alaa, 2013, p. 101). as for the perspective of the iasb board, the objective of the interim financial reports is to provide information that is useful in making economic decisions, as is the case in the annual financial information. in addition, the interim financial reports are expected to provide qualitative information about the financial position, performance and change in the financial position of the organization. the objective in general is to embrace presentation or disclosure either by presenting integrated financial statements or summary information. therefore, the objective of standard no. (34) for interim reporting is to provide an understanding of the ability to make the right decisions at the appropriate time. (al-tamimi, abbas hamid, 2008, p. 25). fourthly: the impact of creative accounting on reliability and determinacies: ti countfinancial data ics the final product of the accounting system, the accounting information is used in making decisions by its users, and in order to increase degree the dark to transparency in the information contained in the announced financial statements and increasing the confidence of investors and related parties in the company, the principle of disclosure, which requires the publication of financial statements, must be adhered to ics that have been prepared in a manner thatin accordance with the accounting principles, with the attachment of a set of reports, notes and clarifications, it deals with clarification or detailing the information on the items contained in the data so that it is not used as a means of fraud or deception.(gouda, fikri abdel ghani, 2008p. 35). search quarter study population and sample. seeking the researcher seeks obtaining the data required to perform the statistical analysis, in order to recommendit leads to results that achieve the objectives sought by the study description for the methodology for members of the study community and for its sample as well as the used study tool, the method of preparing it, how it was built and developed, and the extent of its validity and stability. it also includes a description for actions that follow the designing the study tool to collect data, the chapter ends with the statistical treatments that were used to analyze the data and draw conclusions, under an environment that is open to innovation, in which there is a solid infrastructure capable of supporting the process of communication and interaction, since establishment of iraqi companies and still, it faced many problems, especially in the field of finance, due to the adoption of traditional methods in the registration process and its adoption of the traditional accounting system, which required searching for ways and procedures to solve these problems through its competencies. therefore, e-governance was found to be one of the most successful methods. with the requirements of the age of technology and with regard to our current research focusing on part of this development that you have introduced companies represented the role of corporate governance in reducing the negative impact of creative accounting inreliability of interim financial informationand the associated problems and advantages, as will be explained in the applied side of the research. or not: the characteristics of the study sample: american journal of business management, economics and banking volume 12 may, 2023 p a g e | 174 www.americanjournal.org in its first section, the questionnaire contained a set of general questions related to the personal data of the study sample members, which were categorized into four variables: educational qualification, scientific specialization, work experience, and age group. qualification:choosetresearcherhshow the academic qualification according to table no. (2) below: table number2distribution of the sample members according to the educational qualification variable. frequency percent valid percent cumulative percent valid bachel or of 41 31.8 31.8 31.8 master' s 73 56.6 56.6 88.4 phd 15th 11.6 11.6 100.0 total 129 100.0 100.0 source: prepared by the researcher housing the statistical program spss. table no. (2) above is the distribution in percentages of the scientific qualification of the participant in answering the questions of the questionnaire. that who holds a certificate? "phd" from the participants; where the ratio%31.78of the participants carrying certificate "bachelor of', the ratio% 56.59of them carry certificate "master", while the ratio%11.63of the participants carrying certificate "phd"; thus, the participants will be holders of the "magnificence". they have the most share in this study, and this gives a greater ability for the sample members to answer the questionnaire questions. jurisdiction:diversity of specializations involved inthis is amazingthe study,qit appeared according to table no.3) below: table number3distribution of the sample members according to the variable of scientific specialization. frequency percent valid percent cumulative percent valid accounting 79 61.2 61.2 61.2 economics 8 6.2 6.2 67.4 business administration 30 23.3 23.3 90.7 financial sciences and banking 12 9.3 9.3 100.0 total 129 100.0 100.0 table no. (3)above is the competence of each of the participants in the questionnaire, where the first line of the table appear and specialists in the field of "accounting"79shared by%61.24, while the second line shows specialists in the field of "economics" and they are8participants by%6.20only, the third line of the table appears that professionals in the field of "business administration" who american journal of business management, economics and banking volume 12 may, 2023 p a g e | 175 www.americanjournal.org represent30shared by% 23.26,while the fourth line presented table of participants specialized in the field of "financial sciences “and banking “they were12shared by%9.30; hence, it can be said that specialists in the field of "economics" obtained the lowest position, while specialists ranked and in the field of "accounting" the highest place in this study; this thus enhances the answers to the questions directed to them in a manner that serves the interest of the research decentered around accounting creative. practical experience:the number of years of experience differed for the participantsin this study,this was shown in table no. (4) below: table no. 4: distribution of the sample members according to the variable of work experience. frequency percent valid percent cumulative percent valid less than 5 years 58 45.0 45.0 45.0 from 5 to 10 years 42 32.6 32.6 77.5 11-15 years old 17 13.2 13.2 90.7 more than 15 years 12 9.3 9.3 100.0 total 129 100.0 100.0 table no. (4) number of years the expertise have participants, as the first line of the table shows participants with less than 5 years of experience and who have reached58shared by% 44.96, the second line of the table appears that participants who range news accounts between 5and10 years they were42participantain the rate of%32.56as for the third line of the table, it refers to the participants who have experience ranging from11 and15 years and who registered17participant.ratio investigators% 13.18, and finally last line of the table the sign for someone who has experience excellence the 15thagehthey were12 average participant %9.30; building. on the above see researcher thatthe lowest rank of participants was who they have more than 15 years of experience and the highest rank was for whom less year’s news they have about the 5yearsthis is normal because the study sample includes a group of university students. age group:choosetresearcherhshowthe ageaccording to table no.5) below: table no.5distribution of the sample members according to the age group variable. frequency percent valid percent cumulative percent valid less than 25 years old 31 24.0 24.0 24.0 from 25 to less than 35year 67 51.9 51.9 76.0 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 176 www.americanjournal.org from 35 to less than 45year 23 17.8 17.8 93.8 45 years and over 8 6.2 6.2 100.0 total 129 100.0 100.0 table no. (5)age group for participants in questionnaire form, the first line appearsl of the table participants who under the age of 25 years, where reached 31 participant in the rate of% 24.03, and the second line of the table participants who range their age between the 25 to less than 35 age they were 67 participated by% 51.94 as for the third line of the table, it refers to the participants of the range their age between the35 to less than 45 age and who 23 participant. ratio investigators % 17.83, and finally comes of the table over the age of 45age of the participants were 8 participant rate% 6.202; the above you see research that lowest rank of participants was who over the age of 45 age and the highest rank was for whom their ages ranged from 25 to less than 35 years, which is an acceptable age for the formation of expertise in this field this ensures a logical answer to the questionnaire questions. secondly: statistical method and tools used in data analysis: to achieve the objectives of this study and test its hypotheses, use researcher statistical package for the social sciences programs pss 19-statistical package for the social sciences) in analyzing the data obtained through the field study of the researched sample, another set of statistical tools, including: a-arithmetic mean (mean):it is a value around which values are gathered thea group, through which the rest of the group values can be judged, so this value is the arithmetic mean. bstandard deviation (standard deviation): it is used to measure the extent of statistical scattering, that is, it indicates the extent of extension of value domains within the statistical data set. ca test-test (one sample t-test): this test is used to test a hypothesis related to the arithmetic mean. the researcher used this test to test the hypotheses to test of validity and reliability of the questionnaire. 1trustworthiness of questionnaire test: prepare morality basic requirements in the questionnaire. it means the suitability and appropriateness of the questionnaire for the assignments established for the study and its objectives, in order to ensure that questionnaire was presented to a group of experts and test who is specialized in the fields of scientific research, accounting, and the arabic language?5) arbitrators, to check the suitability of the design of the form and content with the hypotheses of the study, as well as the extent of the ability to measure the variables and their relationships with each other valuable notesthe statement made by legislation committee that was vision the formed form in its initial, to display in its final form, to be use it in the distribution process on the study sample. 2questionnaire stability: that constancy means a scale stability and inconsistency, which scale gives the same results and probability equal to the value of the coefficient if it is repeated over the same population, for the purpose of checkingd of the stability of the scale was used equation alpha cronbach's alpha)), to determine the accuracy of the answers of the study sample, cronbach's alpha coefficient values are statistically acceptable. when these values are equal to or greater than (0.6), specifically in administrative and accounting research, as follows: table number 6: cronbach's alpha coefficient at the level for the variables. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 177 www.americanjournal.org number of items cronbach's alpha coefficient 50 0.875 table shows above the value of cronbach's alpha coefficient is (0.875) on the total of the variables, this means that the coefficient is statistically acceptable because it greater than (0.6). table number 7: cronbach's alpha coefficient at the level variables the first axis. number of items cronbach's alpha coefficient 25 0.845 table shows above the value of cronbach's alpha coefficient on the level of the variables of the first axis, to measure the impact of the application of corporate governance principles in reducing the negative impact of creative accounting equal (0.845), and this is meaning that coefficient is statistically acceptable because greater than (0.6). table number 8: cronbach's alpha coefficient at the level variables the second axis. number of items cronbach's alpha coefficient 25 0.736 table shows above the value of cronbach's alpha coefficient on the level of the second axis variables, to measure the impact of applying corporate governance mechanisms in reducing the negative impact of creative accounting equal (0.736), and this is meaning that coefficient is statistically acceptable because greater than (0.6). fourth: data analysis and hypothesis testing. 1repetitions and analysis of the answers of the study sample members: under the treatment of a questionnaire has been designed to answer the researcher used point likert standard (likert) in measuring answers of questionnaire, and check the answers used are as follows: (5) means strongly disagree, (4) means disagree, (3) means neutral, (2) means ok, (1)means strongly agree, the more the arithmetic mean is greater or equal to the hypothetical mean of (3), that is evidence towards the answers of the research sample is not compatible with the movement of the scale, and whenever it is less than (3) that answers correspond to the movement of the scale. the following table indicates on the meadow averages show the type of each answer in five-point likert scale. table 9: weighted average. weighted average the level mn1 to me1.79 strongly agree from1.80 to 2.59 ok from2.60 to me3.39 neutral from 3.40to 4.19 not agree from4.20 to 5 strongly disagree american journal of business management, economics and banking volume 12 may, 2023 p a g e | 178 www.americanjournal.org source: prepared by the researcher. in order to find out the answers to the sample trends for each paragraph and for each of the axes of the study, ratios and repetition were used the arithmetic means, standard deviations, and the results were as follows: the first axis: the impact of applying corporate governance principles in reducing the negative impact of creative accounting on the reliability of financial statements. the following table shows the results of the questions1-2-3-4-5from the first axis regarding the principle of shareholder rights: table number10: results of questions 1-2-3-4-5 from the first axis. the right of shareholders to be accountable and oversight over the company's business reduces potential unethical practices. the right of shareholders to participate in decisions to sell or modify the company's assets would limit creative accounting practices. shareholders' follow-up to the financial disclosure procedures followed within the company limits the use of creative accounting methods. the right of shareholders to obtain information about the fundamental changes in the company prevents their rights from being overstepped or tampered with. informing shareholders of any unusual operations that may affect the company in the future will control the behavior of the executive management and the board of directors. n valid 129 129 129 129 129 missin g 0 0 0 0 0 meaning 1.91 2.24 2.16 2.04 2.00 std. deviation .354 .705 .605 .474 .468 the above table shows that the trends of the first five questions are towards agreement, and this was confirmed by the arithmetic mean which was worth1.91fo the first query, 242 for the second query,162. for the third, 2.04 for the fourth question and 2.00 for the fifth question, all of which are lower than the default mean. the following five tables show the detailed results for each question: table no. 11: detailing the results of the first question from the first axis. the right of shareholders to be accountable and oversight over the company's business reduces potential unethical practices. frequency percent valid percent cumulative percent valid strongly agree 14 10.9 10.9 10.9 ok 112 86.8 86.8 97.7 neutral 3 2.3 2.3 100.0 total 129 100.0 100.0 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 179 www.americanjournal.org table no. 12: detailing the results of the second question from the first axis. the right of shareholders to participate in decisions to sell or modify the company's assets would limit creative accounting practices. frequency percent valid percent cumulative percent valid strongly agree 10 7.8 7.8 7.8 ok 88 68.2 68.2 76.0 neutral 21 16.3 16.3 92.2 not agree 10 7.8 7.8 100.0 total 129 100.0 100.0 table number13detailing the results of the third question from the first axis. shareholders' follow-up to the financial disclosure procedures followed within the company limits the use of creative accounting methods. frequency percent valid percent cumulative percent valid strongly agree 8 6.2 6.2 6.2 ok 98 76.0 76.0 82.2 neutral 20 15.5 15.5 97.7 not agree 1 .8 .8 98.4 strongly disagree 2 1.6 1.6 100.0 total 129 100.0 100.0 table no. 14: detailing the results of the fourth question from the first axis. the right of shareholders to obtain information about the fundamental changes in the company prevents their rights from being overstepped or tampered with. frequency percent valid percent cumulative percent valid strongly agree 10 7.8 7.8 7.8 ok 106 82.2 82.2 89.9 neutral 11 8.5 8.5 98.4 not agree 2 1.6 1.6 100.0 total 129 100.0 100.0 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 180 www.americanjournal.org table no. 15: detailing the results of the fifth question from the first axis. informing shareholders of any unusual operations that may affect the company in the future will control the behavior of the executive management and the board of directors. frequency percent valid percent cumulative percent valid strongly agree 14 10.9 10.9 10.9 ok 101 78.3 78.3 89.1 neutral 14 10.9 10.9 100.0 total 129 100.0 100.0 the following table shows the results of the questions6-7-8-9-10from the first axis regarding the principle of equal treatment of shareholders: table number16: results of questions 6-7-8-9-10 from the first axis. the fair treatment of all shareholders achieves protection for all of them from exploitative practices from any party, while providing them with effective means of compensation. the obligation of the members of the board of directors and the executive management to disclose any material interests related to all shareholders or any matters that would affect thethe status of the company would limit the tampering of their rights. the right of all shareholders to obtain information about their voting rights before purchasing shares protects them from any manipulation of their rights in the future. the ability of all shareholders to bring legal and administrative cases against directors and directors would limit unethical practices. the right of the small shareholders to see all the transactions with the members of the board of directors would preserve their rights from any manipulation by the major shareholders. n valid 129 129 129 129 129 missing 0 0 0 0 0 meaning 2.15 1.77 2.10 1.91 2.51 std. deviation .517 .459 .513 .545 .876 the above table shows that the trends of the five questions toward the agreement, and this was confirmed by the arithmetic mean, which reached its value 2.15f or the question sixth, 1.77 for the question seventh,102 for the eighth, 1.91 for the ninth question and 2.51 for the tenth question, all below the default mean. the following five tables show the detailed results for each question: table no. 17: detailing the results of the sixth question from the first axis. the fair treatment of all shareholders achieves protection for all of them from exploitative practices from any party, while providing them with effective means of compensation. frequency percent valid percent cumulative percent valid strongly agree 5 3.9 3.9 3.9 ok 103 79.8 79.8 83.7 neutral 19 14.7 14.7 98.4 not agree 1 .8 .8 99.2 strongly disagree 1 .8 .8 100.0 total 129 100.0 100.0 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 181 www.americanjournal.org table no. 18: detailing the results of the seventh question from the first axis. the obligation of the members of the board of directors and the executive management to disclose any material interests related to all shareholders or any matters that would affect thethe status of the company would limit the tampering of their rights. frequency percent valid percent cumulative percent valid strongly agree 32 24.8 24.8 24.8 ok 95 73.6 73.6 98.4 neutral 2 1.6 1.6 100.0 total 129 100.0 100.0 table no. 19: detailing the results of the eighth question from the first axis. the right of all shareholders to obtain information about their voting rights before purchasing shares protects them from any manipulation of their rights in the future. frequency percent valid percent cumulative percent valid strongly agree 9 7.0 7.0 7.0 ok 100 77.5 77.5 84.5 neutral 18 14.0 14.0 98.4 not agree 2 1.6 1.6 100.0 total 129 100.0 100.0 table no. 20: detailing the results of the ninth question from the first axis. the ability of all shareholders to bring legal and administrative cases against directors and directors would limit unethical practices. frequency percent valid percent cumulative percent valid strongly agree 22 17.1 17.1 17.1 ok 98 76.0 76.0 93.0 neutral 8 6.2 6.2 99.2 strongly disagree 1 .8 .8 100.0 total 129 100.0 100.0 table no. 21: detailing the results of the tenth question from the first axis. the right of the small shareholders to see all the transactions with the members of the board of directors would preserve their rights from any manipulation by the major shareholders. frequency percent valid percent cumulative percent valid strongly agree 8 6.2 6.2 6.2 ok 67 51.9 51.9 58.1 neutral 39 30.2 30.2 88.4 not agree 10 7.8 7.8 96.1 strongly disagree 5 3.9 3.9 100.0 total 129 100.0 100.0 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 182 www.americanjournal.org 2hypothesis testing: the researcher tested the hypotheses of the study after analyzing its results, as follows: first hypothesis: h0: it has not found a significant relationship between the application of corporate governance principles and reducing the negative impact of creative accounting on the reliability of financial statements. h1:it has found a significant relationship between the application of corporate governance principles and reducing the negative impact of creative accounting on the reliability of financial statements. the following test that the researcher will present will prove one of the two hypotheses: table number70: testing the first hypothesis. one-sample test test value = 3 t df sig. (2-tailed) mean difference 95% confidence interval of the difference lower upper hypothesis 1 -978,847 128 .000 -2.84093 -2.8467 -2.8352 it appears in this table that .000 = sig, which is therefore less than 0.05, and this negates h0 in this hypothesis and proves h1, since(h0)express what is greater or equal to 3, and the researcher means by this equation the three options the last one on the questionnaire is (neutral, disagree and strongly disagree), while the(h1) it expresses what is less than 3, which means in this equation the first two options in the questionnaire form are (agree and strongly agree). based on the foregoing, the researcher rejects the null hypothesis, and accepts the alternative hypothesis which states: “there is a significant relationship between the application of corporate governance principles and the reduction of the negative impact of creative accounting on the reliability of financial statements.” conclusion conclusions and recommendations first: conclusions. the most important conclusions reached can be summarized as follows: 1. the elements of the financial statements represent the main axes that the executive management resort to to practice creative accounting methods and policies in order to present a ambiguous impression about the financial information contained data in order to serve various purposes and objectives has to be achieved. 2. the spread and diversity of creative accounting methods are among the main reasons for the lack of reliability in the financial statements, as these methods differ according to their objective, the circumstances, and the opportunities available to the management of the enterprise to practice them. 3. through previous studies, it appears that there is a clear and great interest in the countries of the world about the application of corporate governance principles, because of their importance in reducing financial and administrative corruption. 4. creative accounting is considered unethical behavior, because of the serious violations that accountants pursue in their profession, in order to achieve certain goals and objectives for benefit of particular group on account of the rest of the groups. in other words, it can be said that the ethical american journal of business management, economics and banking volume 12 may, 2023 p a g e | 183 www.americanjournal.org dimensions of creative accounting contradict the rules and ethics of the accounting profession, which constitutes dangerous to the future of the accounting profession. 5. the process of eliminating creative accounting practices is a difficult and complex job, but it is possible. therefore, enhancing the role of accounting mechanisms for governance helps greatly in revealing those practices because there is a close link between the accounting mechanisms of governance and the quality of financial reports and the effectiveness of the control process. 6. the audit committee is one of the most important mechanisms for implementing corporate governance because of its effective and coordinated role with the relevant governance parties (the board of directors, the internal auditor, the external auditor, shareholders and other interested parties), but it cannot alone control the performance of the company and activate its role unless there is a conviction from the board of directors of its importance, as it represents an essential pillar of the supervision and audit process and does not represent the audit process as a whole. 7. the application of corporate governance principles in iraqi companies limits the practice of creative accounting methods, by activating the control and accountability processes trained by each of the shareholders and stakeholders in the company, which is positively reflected on the principle of disclosure and transparency, which in turn supports the degree of confidence and credibility in the financial statements. 8. the board of directors plays a main role. whatever as one of the governance mechanisms, through its involvement, which qualifies them to deal with different aspects of the activity and the ability to follow up and hold the executive management accountable, in addition the committees created by the council and that ensures the safe, sound, and efficient conduct of the company's business. 9. internal audit has a significant impact on limiting creative accounting practices because of its role in developing and improving internal control systems to enhance their resistance to pressures of management interventions in the audit process. 10. the audit committees carrying out their duties related to the supervision and control of financial reports, the examination and evaluation of the internal control system, and the coordination between the internal audit, the board of directors and the external audit, made it one of the most important mechanisms of governance, as it has an active role in managing risks and limiting creative accounting practices. 11.the external audit plays a major role in limiting creative accounting practices, through its followup to the company’s board of directors in achieving its objectives, disclosing the material events affecting the financial position and the nature and impact of the risks it faces, and ensuring the quality of internal control performance to increase its effectiveness in risk management and control. to ensure the integrity of the accounting and auditing processes in the company and the truthfulness and fairness of the financial statements. 12.governance mechanisms play a prominent role in limiting creative accounting practices, except for the legal environment. iraqi laws have not yet issued a clear guide to governance. second: recommendations. in light of the conclusions that have been reached, the researcher makes the following recommendations: 1.researchers, professionals, and those interested should pay more attention and introduce the importance of the issue of corporate governance and its principles, objectives and positives at the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 184 www.americanjournal.org level of companies and at the level of the country, with an emphasis on the need to take their suggestions into consideration to help implement good and rational governance. 2.subjecting the external auditors and their working methods to a continuous evaluation process to identify the strengths and weaknesses in their work and working to develop their expertise and skills in accessing modern auditing methods. 3.it is necessary for the external auditors, when carrying out the audit process, to give the sufficient attention to all the elements and components of the audit process and finance data, to get acquainted with all the practices and methods of creative accounting that may be applied. 4.prepare the conferences and seminars specialized in accounting, financial and legally to preparing explanatory brochures to show the risks of using creative accounting and the negativity effects on the future of companies, economy, and regional and international reputation. 5.the need for company departments to cooperate fully and transparently with the external auditor while doing his work, because of it is importance that contributes to increasing the confidence and credibility of the financial statements issued by the company. 6.preparing courses for auditors so that each auditor shares his or her own experiences and the misleading operations he went through in the financial statements with the rest of the auditors, especially if the auditor is new to the profession. 7.paying attention to the adequate and good preparation of internal auditors because of its significant role in influencing their professional competence, and thus reducing the risks that the interim financial reports may be exposed to. 8. the need to strengthen the application of corporate governance in iraq and to update and develop regulations and laws to keep pace with their requirements, so that a guide is developed to be included the most important principles that must be adhered to, and that laws stipulate penalties in case of violation. 9. the necessity of establishing a legal framework for the accounting profession to take care the interests of interests of practitioners and helps in educating the accountants on the most important rules during the process of preparing the financial statements, a framework protects the preparers from any pressures they may be exposed to from management. 10. the necessity of developing legislation and regulations that regulate the work of external auditors, so that they can carry out the audit process with independence and high professionalism away from the influences and pressures of the company's management. 11. issuing legislation that includes deterrent penalties for cases of manipulation and fraud that may occur in the financial statements of companies, in order to limit the use of illegal means when preparing these statements. 12.tightening of supervision by the various supervisory authorities in the country, companies that are involved in carrying out some creative accounting practices must tamper or distort their data and information. 13. seeking to find a relationship between audit companies at the local level and major companies at the global level, in order to benefit from the expertise of these companies and the huge capabilities available to them. 14. legalization of management's ability to manipulate the finance data by setting sufficient limits for the use of accounting alternatives in the field of measurement and disclosure. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 185 www.americanjournal.org 15. recommending studies related to enhancing the ethical aspects of accountants and auditors to reduce the chance to manipulate by creative accounting methods and practices, in addition to holding seminars for users of financial reports explaining the creative accounting practices that practiced by some companies and the most important developments in the field of auditing and accounting in order to spread awareness among them. 16. accelerate the review and development of laws and regulations (especially those related to the organization of companies) in line with the requirements of the current and future period and in a manner that enhances disclosure and transparency in financial statements and ensures the protection of the rights of small shareholders. 17. finding a reference for accountants with independence to protect them from management interventions that may force them to exceed legal and accounting requirements, as well as to secure their relative independence in a manner that achieves effective and efficient performance in accordance with generally accepted accounting principles and protects them from legal accountability. 18. emphasizing the need to include the concept of corporate governance in the curriculum plans of the accounting departments in iraqi universities, with a focus on holding workshops, seminars, and practical cases to explain the applied aspects of this concept in the iraqi environment. list of sources and references hammad, tarek abdel aal, 2008, corporate governance: public and private sector companies and banks, university house, alexandria, egypt. al-khashawi, ali et al..., 2008, creative accounting and the role of the auditor in verifying its practice and results, audit bureau, amman, jordan. soliman, mohamed mostafa, 2008, corporate governance and the role of board members and executive directors, university house, alexandria, egypt. soliman, mohamed mostafa, 2009, the role of corporate governance in addressing financial and administrative corruption (a comparative study), university house, alexandria, egypt. ali, abdel wahab nasr and shehata,shehata el-sayed, 2007, auditing and corporate governance in the contemporary arab and international business environment, university house, alexandria, egypt. abusalim, khalil, measuring the impact of commitment to applying corporate governance on attracting foreign investments, jazan university journal, humanities branch, saudi arabia, volume 03, issue 01, 2014. ismail, mujbil, the impact of creative accounting methods on the reliability of accounting information: an applied research in a governmental bank, al-qadisiyah journal for administrative and economic sciences, iraq, volume 16, issue 3, 2014. blah, syed abdul rahman, the role of corporate governance application in the practice of creative accounting methods, journal of economic and management sciences, riyadh, saudi arabia, issue 12, 2012. tijani, brqi, creative accounting: innovative concepts and methods to beautify the income picture, journal of economics and management sciences, setif university, algeria, no. 12, 2012. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 186 www.americanjournal.org helles, salem abdullah, accounting estimates and the problems resulting from their use and the position of the external auditor on them, al-rafidain development journal, mosul university, iraq, vol.30, issue 96, 2002. hamada, rasha, the role of audit committees in reducing creative accounting practices, damascus university journal of economic and legal sciences, damascus, syria, volume 26, issue 02, 2010. khalil, mohamed, the role of the management accountant in the framework of corporate governance, journal of commercial studies and research, faculty of commerce, benha university, egypt, issue 02, 2003. darwish, abdel nasser, accounting disclosure in the effective application of corporate governance an analytical field study, journal of financial and commercial studies, faculty of commerce, beni suef, cairo university, egypt, no. 02, 2003. ramo, waheed mahmoud, the conceptual framework for creative accounting in the light of the accounting profession’s rules and ethics and international accounting and auditing standards, alrafidain development journal, mosul university, iraq, volume 30, issue 89, 2007. rihawi, maha, joint stock companies between governance, laws and instructions: a case study for omani public shareholding companies, damascus university journal of economic and legal sciences, damascus, syria, volume 24, issue 01, 2008. sami, magdy mohamed, the role of audit committees in corporate governance and its effects on the quality of financial statements published in the egyptian business environment, journal of the faculty of commerce for scientific research, alexandria university, egypt, volume 46, issue 02, 2009. chariki, omar, internal audit as one of the most important mechanisms in the governance system and its role in raising the quality of performance in the institution, journal of the performance of algerian institutions, setif university, algeria, no. 07, 2015. ali, mustafa abdel hussein and hussein, ali kazem, the role of governance in improving the strategic performance of tax administration, journal of accounting and financial studies, university of baghdad, iraq, volume 08, issue 22, 2013. al-qutaish, hassan and al-sufi, faris, methods of using creative accounting in the income and financial position statements in public shareholding commercial enterprises listed on the amman stock exchange, journal of baghdad college of economic sciences university, iraq, issue 27, 2011. al-mobaideen, tariq and abdel-moneim, osama, the role of creative accounting in the emergence of the global financial crisis and loss of reliability in financial data: from the point of view of auditors and university professors, journal of economic and administrative research, zarqa private university, jordan, issue 08, 2010. muhammad hassan, bushra, a suggested guide for activating the audit committee to support the implementation of corporate governance and its mechanisms, al-ghari journal of economic and administrative sciences, iraq, volume 08, issue 22, 2012. al-mousawi, hassan and al-zarir, rania, the adequacy of the experience of certified accountants in lebanon to expose creative accounting practices from the perspective of the experts themselves, al-baath university journal,chickpeas, syria, volume 38, issue 12, 2016. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 187 www.americanjournal.org yaqoub, fayhaa and al-khanmi farqad, the impact of applying corporate governance rules on the credibility of financial reports and in determining the income tax base, journal of accounting and financial studies, baghdad, iraq, 2010. abu hamam, majed ismail, the impact of implementing governance rules on accounting disclosure and the quality of financial reports, a thesis prepared to obtain a master’s degree in accounting, the islamic university, gaza, palestine, the academic year 2008-2009.. ahmad, ziad jamal, factors affecting the quality of auditing from the perspective of groups related to the audit environment, a thesis prepared for a master’s degree, al al-bayt university, college of economics and administrative sciences, jordan, 2002. al-agha, emad, the role of corporate governance in reducing the negative impact of creative accounting on the reliability of financial statements, thesis prepared for a master’s degree in accounting, faculty of economics and administrative sciences, al-azhar university, gaza, palestine, 2011. brahma, kenza, the role of internal audit in activating corporate governance, a thesis prepared to obtain a master’s degree in business administration, management sciences, university: constantine, algeria, academic year 2013-2014.. beydoun, alaa and oneissi, alaa, the role of accounting information in evaluating the effectiveness of governance, a study prepared for a bachelor’s degree in business administration, accounting and auditing department, lebanese university: 2012-2013 academic year. al-tamimi, abbas hamid, the impact of agency theory on accounting applications and governance in state-owned companies: a field study in a sample of iraqi companies, a thesis prepared for a phd in accounting, university of baghdad, iraq, 2008. jarrar, uday, developing a strategy to reduce the negative effects of using creative accounting in jordanian public shareholding companies, thesis prepared for a ph.d., amman arab university for graduate studies, amman, jordan, 2006. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 23 www.americanjournal.org prospects for the introduction of islamic finance in uzbekistan aliqoriev o.f. phd, associate professor, head of department of research-pedagogical personnel training, gsbe a b s t r a c t k e y w o r d s this article discusses the financial operations performed by islamic banks, the processes of working with customers, and their differences from traditional banks. today, financial transactions in islamic banks: deposit, credit, letter of credit, settlement, payment transactions are analyzed and scientific conclusions are formed. shariah principles, islamic banking system, financial intermediation, muzoraba, mudarib, dual banking system. introduction as you know, traditional banking is based on bank interest charged regardless of the performance of the borrower. an analysis of the banking and financial services market indicates the presence of an increased interest among citizens and entrepreneurs in using alternative banking and financial services that are not burdened with bank interest based on the principles of islamic financing. principles of islamic finance are standards developed and approved by international organizations (accounting and auditing organization for islamic financial institutions, islamic financial services council) for islamic banking and finance, based on the principles of shariah (islamic law), which provide for the rejection of bank interest in favor of project investments based on the sharing of risks and equity participation of the bank and the client. to date, the accumulated experience and knowledge of commercial banks in the field of financing small and private businesses in cooperation with the islamic corporation for the development of the private sector (part of the islamic development bank group) create positive prerequisites for conducting islamic banking and finance, in particular, the introduction of "islamic window" in uzbekistan. however, one of the main obstacles in this area is the lack of a regulatory framework. an islamic window is a separate structural unit in a traditional commercial bank that provides banking services based on the principles of islamic finance, while an islamic bank is a bank that deals only with islamic finance and does not provide traditional banking services. islamic windows are available in many major first-class banks of the world (abn amro, bank of america, barclays plc., bnp-paribas, chase manhattan, citibank, deutsche bank, goldman sachs, hsbc, jpmorgan chase, lloyds bank, societe generale, ubs etc.), which provide the full range of american journal of business management, economics and banking volume 10 march, 2023 p a g e | 24 www.americanjournal.org islamic banking services in full compliance with sharia law, which in fact are full-fledged alternatives to traditional banking products. studying the experience of foreign countries (great britain, kazakhstan, kyrgyzstan, malaysia, tajikistan, turkey, etc.) shows that the legislation provides for the principles of islamic finance, and separate laws have been adopted. experience of foreign countries on legal regulation in the field of islamic banking and finance # a country description 1. great britain law " on finance" from 2005 chapter 5 alternative financing mechanisms introduction section 46 alternative financing mechanisms mechanisms providing alternative financial income section 47 alternative financing mechanisms: alternative financial income section 49 alternative financing mechanisms: profit sharing returns 2. kazakhstan law of the republic of kazakhstan "on banks and banking activity in the republic of kazakhstan" dated august 31, 1995 no. 2444 (with amendments and additions as of 07/04/2018) article 3. banking system of the republic of kazakhstan 5-1. islamic bank a second-tier bank carrying out banking activities provided for in chapter 4-1 of this law, on the basis of a license from an authorized body. chapter 4-1. features of the creation and operation of islamic banks article 52-1. requirements for the activity of an islamic bank article 52-5. banking and other operations of an islamic bank 3. kyrgyzstan law of the kyrgyz republic “on the national bank of the kyrgyz republic, banks and banking activities” dated december 16, 2016 no. 206 article 3. basic principles of banking legal relations 4) use of various forms and principles of bank financing, including islamic principles of banking and financing; article 4. islamic principles of banking and finance article 77. bank article 82. issuance of a license for the right to conduct banking operations article 96. management bodies of the bank article 111. banking activity and banking operations article 112. lending article 113. investments of the bank 4. malaysia islamic financial services act 2013 financial services act 2013) american journal of business management, economics and banking volume 10 march, 2023 p a g e | 25 www.americanjournal.org the law provides for the regulation and supervision of islamic financial institutions, payment systems and other relevant bodies, the supervision of the islamic money market and the islamic foreign exchange market to promote financial stability and compliance with sharia and related, additional or indirect matters. 1. on the rights, obligations and functions of islamic financial institutions 2. authorization rules of islamic financial institutions 3. requirements of the religion of islam (sharia) on the activities of islamic financial institutions 4. about payment systems 5. prudential requirements 6. on the ownership of a financial institution, and on the transfer of ownership 7. financial groups 8. on protecting the rights of consumers of services of islamic financial institutions 9. islamic securities exchange rules 10. about reporting and providing data 11. checking the activities of islamic financial institutions 12. other rights of the bank 13. application of punishments 5. tajikistan law of the republic of tajikistan "on islamic banking" dated july 26, 2014 no. 1108 this law defines the legal and organizational framework for islamic banking in the republic of tajikistan and creates favorable conditions for its implementation. chapter 1. general provisions (articles 1 7) chapter 2. the procedure for the creation and licensing of islamic credit organizations (articles 8 21) chapter 3. capital (articles 22 23) chapter 4. management of islamic credit organizations (articles 24 33) chapter 5. regulation of the activities of an islamic credit organization (articles 34 45) chapter 6. accounting and financial reporting (articles 46 50) chapter 7. audit (articles 51 53) chapter 8. confidentiality (articles 54 57) chapter 9. supervision and verification (articles 58 59) chapter 10. final provisions 6. turkey banking law no. 5411 of 2005 according to the law, banking institutions operating in the country are divided into three areas depending on the specifics of their activities: american journal of business management, economics and banking volume 10 march, 2023 p a g e | 26 www.americanjournal.org "trading", "investment" and "joint participation banks". it should be noted that the law does not contain the words "islam" or "sharia". islamic banks are called "participation banks", which operate under the rules of islamic finance. under the law , joint participation banks are authorized to receive deposits using "profit and loss sharing accounts" and "special current accounts". 1. regulations on associations of financial institutions 2. rights and obligations of associations 3. permission to establish a joint participation bank 4. merger clause 5. regulation on financial statements of joint participation banks 6. regulation on contracts 7. regulations on the application of penalties 8. cancellation of activity license a number of international institutions ( the world bank, the islamic development bank, the international monetary fund, the islamic financial services council and standard & poor's ), expressing confidence in the relevance of islamic finance in their studies and reports , state that it has "strong potential to promote financial stability, financial accessibility and shared prosperity, as well as infrastructure development, which will create favorable conditions for the timely implementation of the sustainable development goals” and “if islamic financial principles are applied in the financial system, they can “minimize the severity and frequency of financial crises.” based on the foregoing, in order to create alternative financing opportunities and meet the growing needs of the population and entrepreneurs, expand the range of banking and financial services offered, mobilize resources from domestic and foreign markets based on the principles of islamic finance, it is proposed to create a legal framework for conducting islamic banking and finance. necessary create an interdepartmental working group consisting of representatives of the ministry of economics of finance, the central bank and other interested ministries and departments to study this issue and adopt a draft of the relevant regulatory legal act. in conclusion we can state that uzbekistan has great prospects for development of islamic finance industry. as we have explained earlier there are both religious and economic reason to justify introduction of islamic banking and finance products in the country. by doing so, uzbekistan would not just satisfy the demand of the local population for such products, but can also attract many foreign investors to uzbekistan’s new investment opportunities opening up for them. uzbekistan has all the right parameters to become islamic finance hub for central asian region. the only missing link is proper legislation and infrastructure for functioning of this new industry. proposal of the draft of the decree of the president of uzbekistan “on the creation of the infrastructure of the islamic banking and finances in the republic of uzbekistan” in may 2018 was the right step in the right direction. however, this draft should be correctly applied into the action by passing of proper legislation and formation of right infrastructure. once, those steps are completed we can rest assured that it will not take much time to realize its economic and social benefits to the population of the country. moreover, we structure the core topics of islamic economics and finance re-search and demonstrate it to be a vibrant area of research attempting to reach across the spectrum of economics and finance. the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 27 www.americanjournal.org explicit aim of integrating morality in the practice of economics and finance is quite novel in modern economics and is of wider benefit outside of just islamic perspectives on morality, given the needs of all societies. the structure provided of islamic economics and finance research will undoubtedly continue to evolve as research develops further, but we propose this structure as a useful starting point for charting the development of the research agenda and for new researchers interested in growing the area further. need incorporating islamic financial system (formal and informal institutions) to the existing financial system and fill in the financing gap existing in uzbekistan. combination of formal and informal financial institutions, which is part and parcel of islamic financial system, has high potential in funding the balanced growth in uzbekistan. the success of islamic financial institutions in peer countries like indonesia and bangladesh is com-mendable and worth adopting and incorporating its best practices. the presence of effective informal institutions in islamic financial systems, like waqf and zakat, can help not only to eradicate poverty and improve living standards, but also to be highly efficient in meeting various financing needs of msmes. the government can also benefit from islamic finance by issuing sovereign and green sukuk to fund infrastructural and environmental development projects. the government could raise funds not only from local investors but also attract foreign investors (particularly from muslim countries). there is more zeal and positivity pertaining to the willingness of people in contributing to zakat, waqf, and sadaqah. this necessitates development of a prudent, transparent and efficient institution for collection, management and usage of zakat and sadaqah aimed at poverty alleviation and financial empowerment of msmes. for the purpose of achieving this objective, it is essential to organize various waqf awareness programs promoting the benefits and importance of islamic social finance. other alternatives like islamic crowdfunding could also play a crucial role in channeling islamic funds to finance sustainable development projects. literature: 1. infrastructure for islamic banking and finance is being created in uzbekistan / https://kun.uz/ru/news/2018/05/16/v-uzbekistane-sozdaetsa-struktura-islamskogo-bankovskogodela-i-finansov. 2. for the first time in uzbekistan, on the basis of the ipak yuli bank, it is planned to create an “islamic window” / https://kun.uz/ru/news/2018/07/12/vpervye-v-uzbekistane-na-baze-banka-ipak -juliplaniruetsa-creation-islamskogo-windows. 3. katarzyna w. sidlo. islamic finance 2017: state of the art and outlook for the future / case – center for social and economic research. september 15, 2017. 4. aliqoriev olimkhon furqat ugli (december 2022). conceptual foundations of islamic banking. international journal of economic perspectives, 16 (12), december 2022 20-31 retrieved from https://ijeponline.org/index.php/journal. 5. islamic finance and banking system. translator: botyrhoja joraev. t.: "uzbekistan", 2014. p. 122. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 24 www.americanjournal.org the concept of business etiquette and business communication абдуллажонова шахноза акбаровна cтарший преподаватель кафедры “межфакультетское педагогики и психологии” кгпи пайзиева нигина тургунбой кизи студентка 3-курса факультета русского языка и литературы a b s t r a c t k e y w o r d s this article provides information on the topic "business etiquette: personal and written communication". the types and principles of business communication are given. business etiquette, business conversation. written" and "unwritten" norms, welcoming speech, presentation, report at a conference, meeting, report, reference, business letter, order, instruction, order, application, contract introduction: business communication is a complex multifaceted process of developing contacts between people in the service sphere. its participants act in official statuses and are focused on achieving the goal, specific tasks. a specific feature of this process is regulation, i.e. obedience to established restrictions, which are determined by national and cultural traditions, professional ethical principles. there are known "written" and "unwritten" norms of behavior in a given situation of official contact. the accepted order and form of treatment in the service is called business etiquette. its main function is to form rules that promote mutual understanding between people. business etiquette includes two groups of rules: norms in force in the sphere of communication between equals in status, members of the same collective (horizontal); instructions that determine the nature of the contact between the manager and the subordinate (vertical); a common requirement is a friendly and helpful attitude towards all colleagues, partners, regardless of personal likes and dislikes. the regulation of business interaction is also expressed in attention to speech. be sure to observe speech etiquette the norms of language behavior developed by society, typical ready-made "formulas" that allow you to organize etiquette situations of greetings, requests, gratitude, etc. (for example, "hello", "be kind", "allow me to apologize", "happy to meet you"). these stable structures are selected taking into account social, age, psychological characteristics. communication as interaction assumes that people establish contact with each other, exchange certain american journal of business management, economics and banking volume 13 june, 2023 p a g e | 25 www.americanjournal.org information in order to build joint activities, cooperation. in order for communication as interaction to occur without problems, it should consist of the following stages: establishing contact (acquaintance), involves understanding another person, introducing yourself to another person; orientation in the situation of communication, comprehension of what is happening, excerpt of a pause; discussion of the problem of interest; problem solving; end (exit) contact. official contacts should be built on a partnership basis, based on mutual requests and needs, from the interests of the business. undoubtedly, such cooperation increases labor and creative activity. concepts and types of business communication. business communication is a complex multifaceted process of developing contacts between people in the service sphere. its participants act in official statuses and are focused on achieving the goal, specific tasks. according to the method of information exchange, oral and written business communication are distinguished. oral communication is a monologue and dialogue. monologues include a welcoming speech, a trade presentation, advertising, a report at a conference, meeting, meeting and other informational monologues dialogues involve the participation of several participants. it can be a business conversation a small contact on a specific topic, usually one. a business conversation is a discussion of an issue, usually accompanied by the adoption of a specific decision. business negotiations a discussion in order to make a decision on the issue under discussion, as well as a discussion, meeting, interview, telephone conversation, press conference. written business communication is a protocol, a report, a certificate, a business letter, an order, an instruction, an order, a statement, a contract and other official documents. business communication can be divided into types according to many more principles and indicators. for example, corporate communication involves a deep process of interaction, during which a common corporate culture is developed. in turn, corporate communication can be divided into verbal and non-verbal. verbal (from latin verbalis verbal) is carried out with the help of words, non-verbal with the help of gestures, looks, facial expressions. the types of corporate communication also include business conversation, public speaking, negotiations, discussions, discussions, reception. all these types of business communication fulfill certain goals: organization of joint activities; knowledge another other; achieving a certain result; development of interpersonal relationships. during the conversation, it is necessary to maintain self-control, good mood and benevolence, an educated and well-mannered person is recognized by modesty. he avoids bragging about his knowledge and acquaintances with the "right" people. references: 1 akbarovna, abdullazhonova shakhnoza. "pedagogical creativity." galaxy international interdisciplinary research journal 10.12 (2022): 936-941. 2 akbarovna, abdullazhonova shakhnoza. "pedagogical creativity." galaxy international interdisciplinary research journal 10.12 (2022): 936-941. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 26 www.americanjournal.org 3 sh, abdullajonova. "problems of updating the mechanisms of using foreign experience in the fundamental reform of the higher education system." international journal of early childhood special education 14.7 (2022). 4 akbarovna, abdullazhonova shakhnoza. "pedagogical activity and its features." galaxy international interdisciplinary research journal 10.12 (2022): 942-945. 5 akbarovna, abdullajonova shaxnoza. "rus tilini o’qitishda yangi pedagogik texnologiyalardan foydalanishning ahamiyati." academic integrity and lifelong learning (2023): 61-63. 6 akbarovna, abdullajonova shakhnoza. "education of harmoniously developed generation in the pedagogical views of eastern thinkers." journalnx 7.03 (2021): 9-11. 7 abdulladjonova shakhnoza akbarovna. "inclusive education and its essence". international journal of social sciences and interdisciplinary studies issn: 2277-3630 impact factor: 7.429 11.01 (2022): 248-254 8 rakhimova, feruza nazhmiddinovna. "multimedia vocitalarining izhtimoiy pedagogik faoliyatga ta'siri va pedagogik-psixologik omillari." e conference zone. 2023. 9 rakhimova, feruza. "model of developing communicative and didactic competence among future teachers." eastern european scientific journal 1 (2019). 10 yuldasheva, malohat, and feruza rakhimova. "introduction of new information technologies." xxi century scientist (2016): 74. 11 раҳимова, феруза нажиддиновна. "мулътимедиа воситаларининг ижтимоий педагогик фаолиятга таъсир этувчи педагогик-психологик омиллари." academic research in educational sciences 3.nuu conference 2 (2022): 879-884. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 1 www.americanjournal.org strategic response and its role in enhancing the organizational prestige (an analytical research in wasit university presidency) *shehenaz fadhil ahmed 1 *professor d. in department of business administration, college of management and economics, al-mustansiriyah university, iraq **buraq talib abduljabbar 2 lecturer, department of business administration, college of management and economics, al-mustansiriyah university, iraq buraq_ad@uomustansiriyah.edu.iq israa shanan thabit 3 *** banking and financial sciences department, college of management and economics, university of mustansariyah email: israa_adm@uomustansiriyah.edu.iq a b s t r a c t k e y w o r d s the current research aims to clarify the strategic response role in enhancing the organization prestige. the research was applied in wasit university presidency. the research sample was chosen from (departments officials, their assistants, and officials of divisions and units) whose number is (43). the researchers used the analytical descriptive approach, and for the purposes of data collection, they developed a questionnaire that covered the research variables and their subdimensions, which were interpreted in 37 paragraphs. many statistical methods were adopted such as (the arithmetic mean, the standard deviation, the spearman correlation coefficient, the f test, and simple linear regression analysis). the ready-made statistical program spss. 28 was used to test the main hypothesis validity, which states that "the strategic response has a statistically significant effect on the organizational prestige". the research has reached out to prove the main hypothesis validity at the macro level and at the level of sub-dimensions as a whole. strategic response, organizational prestige, strategic sensing, strategic flexibility. mailto:israa_adm@uomustansiriyah.edu.iq american journal of business management, economics and banking volume 13 june, 2023 p a g e | 2 www.americanjournal.org introduction: the causes of the environmental turmoil and its continuous fluctuations have grown and multiplied, and it has become necessary for the organizations to understand and be aware of this volatility and turmoil at a time when those organizations are trying to remain stable as long as possible, and even trying to devise methods that make them renewed and constantly developed. a turbulent environment will be existed when the environmental changes in which the organization operates are unexpected, and this also is related to the nature of the pressure that the organization will face in order to be able to respond and act towards such pressure and turmoil. the higher education has been chosen as a field of the research on the basis of the vital role that this sector plays in serving the educational and pedagogical process in the country, which necessitates that a sufficient attention should be paid by the researchers and persons who are interested in this field. it was important to delve into two vital variables in the management field that are represented by the strategic response with its dimensions (strategic flexibility, strategic sensing, collective intelligence) as an independent variable, and organizational prestige of both types (internal prestige, external prestige) as a dependent variable. the paradox that aroused the interest of the researchers and gave support and motivation for researching in the mentioned topics is concentrated in the importance of reviving issues related to the quantitative and qualitative acceleration, the acceleration of development processes, technology and new discoveries that require from all sectors and institutions to keep pace with that development to ensure the survival and continuity and to ensure the preservation of the organization's status and reputation and enhance its prestige in the society. first: the cognitive framework the strategic response: the strategy is the company's plan to survive in the changing environment, so the strategies are not fixed, but they change constantly with the environment's change , and according to (burnes, 2000) the company must respond appropriately to changes that occur in its own environment in order to be effective and then successful. they are called (strategic responses), which are the actions that the organization takes to align itself with the environment, and that any company that does not align with the environment , it cannot survive and is soon forced out of the market (chepkirul, 2016,9). many studies have been conducted on the strategic response to environmental disturbances, as (macharis, 2015) conducted a study on the response to changes in the dynamic environmental business, which was applied in the (britam insurance limited kenya company). the study concluded that the strategic response enables organizations to adapt to the changing business environment, with an important positive relationship between the used strategies in the markets and response to those changes. according to the researchers (denis et al, 2001), the strategic response is that the company is able to maintain its position, and link itself to the environment to ensure the continuity of its success and secure itself from the surprises that are caused by the environmental change. thus, the survival and organization's success occurs when it maintains a match between its strategy and environment, and between its internal capacity and strategies (grant, 2003: 1). moreover, (awuor, 2014) conducted a study on assessing the effects of the commercial environment disturbances, and the extent to which these banks responded to the disturbances, the developing products and creating a new market, the banks were positive in dealing with those disturbances and american journal of business management, economics and banking volume 13 june, 2023 p a g e | 3 www.americanjournal.org pressures through the use of the cooperative strategies (the strategic alliances and business acquisition) as a response to the changing business environment (alukonya, 2021:8). the strategic responses include several options in terms of the direction in the strategy with which the organization can be able to move and the methods that can be followed for the application. there are options in terms of how the organization seeks to compete at the business level. this provides the organization with interactive opportunities that may be attractive, and these opportunities are a possible way to invest (awero, 2011:4). therefore, it is considered as a part of the competitive strategies that the companies develop as an attempt to confront the competition, as well as overcome the competitors (nyokabi, 2018:1) and also a set of values related to the flexible, reliable performance (heizer et al, 2017: 39). the organizations that adopt the strategic responses have better performance compared to those that fail to implement the strategic responses (kathenya & oringo, 2020). it is possible to identify and realize two types of responses, the reactive response and proactive one, and both types are followed by the developmental processes, where the interactive response relates to develop the product features or allocate the resources, while the proactive response represents the targeting of a specific market, new customers, or launches a new product (triaa, 2016: 65). (salman, 76:2022) sees that "the strategic response isn't happened during the crises, but it is an advance preparation and readiness to avoid the losses and achieve a market share in light of the competition and change in the environments, with achieving an innovation and diversity in products. thus, there are three important areas of the company's strategy to determine its responses to the environmental challenges, including (the setting goals, the vision and mission with a competitive strategy) (awero, 2011: 5), and the company must follow six effective steps to achieve an executable strategic response, (aleburu, 2018: 1): 1. preparation: by developing a pre-plan with clear steps adapted to the environment and its changes. 2. define the identity : it is the ability of the organization to detect the potential incidents through several methods, including the environment monitoring besides the dependence and response to obtain an information to ensure the speedy processing. 3. response: the criterion, for this, is the speed of the response to the environmental challenges with the minimal losses. 4. analysis : here comes the role of experts and analysts in analyzing and collecting data and solving the problems and obstacles that prevent the achievement of the goal. 5. benefiting from the information: by making the necessary settlement after the analysis process. 6. commitment: identifying all environmental threats through monitoring the rules, and verifying all alerts and indicators that the environment causes and which reflect the organization's internal ability to adapt and prepare for the challenges. strategic response dimensions: (goyette, 2029) put three strategic response dimensions which were also mentioned by (mahmoud, 2021: 163-170) and including as follows: 1. strategic flexibility: it means the ability to adapt and continuously agree on the strategic direction in the business environment. the challenges faced by organizations and their leaders as a result of the technological developments and climate change made it imperative for those organizations to develop their flexibility to face the expected and unexpected challenges and changes that come from the external environment, and were considered inevitable for the growth, the survival and to bear risks. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 4 www.americanjournal.org the importance of strategic flexibility lies in many aspects, including its positive effects in supporting the innovation and technological capabilities, carrying out the new activities, improving the plans and responding quickly to the environmental challenges. it is embodied in each of the strategic sensitivity, the collective commitment and flow of resources. 2. strategic sensing: (diete-spiff, 2021: 35) defined it as “the ability of the organization to survey and develop the knowledge about its context, and internal evaluation of its capabilities, behaviors, and functions, in a manner that ensures the achievement of its goals." it is a continuous process to seize the opportunities faster than other competitors, and here it defines the role of the sensing in analyzing the different types of the information to understand the environment and its expectations to make the effective decisions, to determine the appropriate change and anticipate the external environment in which it operates and to treat cases of environmental uncertainty. 3. collective intelligence: it means the participation of a group of individuals to improve and innovate a new concept. the concept has received great attention from the researchers because it is linked to the word "intelligence", this means, the ability to learn, understand and adapt to the environment, whereas the term "collective" refers to a group of individuals who are under certain circumstances and situations, which may not be similar among those individuals. it is also a reasonable thinking to deal with the environment effectively, and it may go to more than that, as it is the ability of the human societies for an intellectual cooperation that may lead to the creativity, as stated in (peters et al, 2019). organizational prestige: the organizational reputation occupies a great importance as it reflects the prestige and good reputation in the eyes of many stakeholders. although (march and simon) were the first to discover the concept of the organizational prestige through their research in 1958, but, (meal & ashforth, 1992) were the first to conduct a comprehensive research on it (yidiz, 2018:277). (taylor, 1999) suggested that the workers usually tend to get a sense of the recognition through associating with the reputable organizations, because the contact with such organizations increases the self-esteem and thus provides a source of self-enhancement (hussain & hasan, 2015: 615), whereas (carmeli & freund, 2002) go for more than that, by putting the institutions and employees under one description that is the prestige, which means "it is estimating the institutions and employees to the parties that show respect to them directly and indirectly." in other words, employees evaluate their organizations by taking into account the individuals' opinions outside the organization (278-yidiz, 2018: 277). therefore, the organizational prestige does not only refer to the set of values that the organization possesses and the views of its representatives, but also referes to everyone's interest, connection, and awareness of the issue that has a direct or indirect relationship with the organization (m. fikret et al, 2017:277). from the point of view of (ates et al, 2017), the prestige is defined as it relates to how the organization is evaluated as good or bad, especially since the prestige is the term that the social scientists have long used as the reputation arising from the success, and it is the recognized name for achieving the merit (karim&abdzaide,201:1651). therefore, the meaning of it revolves around the social perception, and this social perception is formed in the minds of the external observers. it is also referred to the perceived organizational prestige as the ideas and beliefs of the employees about the organization. however, the organizational prestige perception refers to a broad belief among the employees regarding how the external stakeholders see their organization (m.fikret et al, 2017:107). in other words, it refers to the individual perceptions and information about the relayed organization to the workplace attitudes such as the emotional commitment, the job satisfaction as well as the general american journal of business management, economics and banking volume 13 june, 2023 p a g e | 5 www.americanjournal.org emotional well-being of the employees. (hussain & hasan, 2015: 615) confirmed this opinion as the employees who view their organizations occupying a prominent position among other organizations, are individuals who enjoy a high degree of positivity and belonging, and this also reflects positively on their organizational identity and provides valuable outputs for their organizations, and here the organization reputation will increase after the qualitative success that the organization can achieve.smith & wang, 2010:210) mentioned that the organizational prestige is interpreted through three indicators, which are the signals theory, the strategy theory, and resource-based theory. in all cases, the organizational prestige should not be mixed with the organization's image. the image of the organization is a visual image that can be formed in a very short time, while the organizational status is a value that can be determined as a result of the organization’s efforts in the long term (tuzunc, 2005), which is that the organization is evaluated on its prestige according to the information obtained from the various sources, therefore, the employees evaluation and other organizations of an organization may reflect direct or indirect respect that they show, that is, the impressions of the parties outside and inside the organization (m. fikret et al, 2017:105). the organizational prestige's importance: (rasheed and al-ziyadi, 2014: 17-18) indicated that the organizational prestige importance is embodied in: 1. the maximizing profits possibility. 2. a positive reputation that enhances the organization's effectiveness in achieving the goals. 3. it contributes to attracting the best talent from human resources with increasing the satisfaction and loyalty of the current employees. 4. it enhances the strength of the organization in attracting the new investors. while (berl et al, 2020) considered the status and prestige of organizations are important through the following (karim & abuziad, 2021: 1652): 1. it can be considered as a quality that an individual possesses and uses in his daily social life. 2. the prestige depends on the self-assessments of others by drawing pictures of the beliefs, the attitudes, the experiences, and values that the individuals and society possess. 3. it reflects the perceptions that the members hold about that organization, whether it is good or bad, whether it is respected or disrespected? 4. its importance stems from the importance of the workers' sense of the pride and belonging to an organization with a social and high-level thought and its adoption of the self-concepts of its workers. organizational prestige types: according to the prestige concept, the organizations today are required to manage their mental image for two classes, the first one among the beneficiaries, the stakeholders and society, in a positive or even ideal way, which would enhance its value among competitors, and the second is the qualified employees and internal investors, and accordingly, the organizational prestige can be divided into two types: 1. inner prestige: it is that “positive feeling that is generated in the working individual's mind to evaluate others, which is embodied in his reputation, personality, and intelligence at work” (hussein, 2019: 56). it is also expressed in the perceived internal prestige, or (how an individual can look at himself within a group) and according to (al-nafakh, 013: 57), its source is the prestige, respect and admiration that the individual enjoys in the eyes of other individuals. 2. external prestige: it is also called external perceived prestige (which concept revolves around the extent to which the employees in the organization realize the view of the external parties towards their american journal of business management, economics and banking volume 13 june, 2023 p a g e | 6 www.americanjournal.org organization such as the stakeholders, the suppliers, the customers and competitors, and thus, the positive outlook gives and develops a sense of pride, belonging and appreciation, whereas the perception of the opposite matter, refers to the opposite negative situation, which leads to the emergence of the negative behaviors towards their organization due to its loss of the social support, and thus it is difficult to enhance its position and success in its business (banai, 2014: 37). it also refers to the positive attitude perceived by the working individual through the view of the external parties to the organization (hussein, 2019: 49) and it is clearly motivates the workers to work in a way that reflects positively on the organization and which direct impact appears on the behaviors and attitudes of the workers (bannai, 2014: 55). second: research methodology research problem: in line with the importance of the strategic leadership behavior of managers in the higher education institutions in iraq and with responding to the environmental changes and rapid developments that are witnessing today's changing environment and with indicators of uncertainty and addressing challenges with achieving of its goals for the success of the educational and educational process, as well as the lack of studies that dealt with the relationship between the strategic response and organizational prestige, this research came in an attempt to address this problem, which can be formulated through the following questions: 1. what is the level of administrators' awareness and understanding of the concept and importance of the strategic response, especially in light of a complex dynamic environment? 2. what is the extent of the awareness among administrators and decision-makers for the importance of strengthening or building a status and organizational prestige for the educational environment to which they belong? 3. what is the strategic response impact in enhancing the organizational prestige? research importance: the research importance emerges from the importance of the researched variables in the field of the management, as well as an attempt to identify what these variables are and the degree of strategic response's contribution of the business organizations in enhancing the organizational prestige. moreover, the vital and important role played by the higher education sector in general and the university of wasit, which is one of the basic and important universities at the country level in graduating all scientific specializations, the current research sample covered the scientific departments' heads as well as units' officials and people at the wasit university headquarters, therefore, the importance revolves around the extent to which this sample realizes the importance of responding to the external environment to enhance the status of their university and ensure its prestige in front of other competitive universities. research objective: the current research aim is to determine the strategic response through its dimensions (the strategic flexibility, the strategic sensing, and collaborative intelligence) to a competitive environment to ensure its prestige through ( an internal organizational prestige and external organizational prestige). we can derive the desired goals to address the problem as follows: american journal of business management, economics and banking volume 13 june, 2023 p a g e | 7 www.americanjournal.org 1. arousing an interest in the two subjects of the research and determining the level of availability of the elements of the strategic response by the sample members, along with determining the level of the prestige for the university. 2. testing the relationship between the strategic response and organizational prestige. 3. examining the strategic response's impact in its dimensions for enhancing the university's organizational prestige in the research community. research methodology: the descriptive-analytical approach was adopted to distinguish this approach with the requirements and needs of the descriptive research, in addition to distinguish it with a holistic view and link the description of the case with its analysis, besides the possibility of drawing the results and indicators as well as showing their indicators. measure tool: an approved measurement tool was designed for obtaining data on the research variables in order to enrich the field side, which is the questionnaire with its paragraphs based on what was obtained from the previous and sober scientific studies after its paragraphs were used in the direction that serves the current research and the purpose for which it was put, where the study of (mahmoud 2021), was depended, which is based on the dimensions of (goyette, 2020) to build the paragraphs of the independent variable with its sub-dimensions. as for the dependent variable (prestige) and its subvariables, the study's scale of (hussein, 2019) was adopted, which is based on the study of (bannai, 2014) and al-yasiri, 2015). and (abbas, 2016). research hypothesis: the research adopts two main hypotheses: 1. there is a positive statistically significant correlation between the strategic response and its dimensions (the strategic flexibility, the strategic sensing, and collaborative intelligence) and organizational prestige. 2. the strategic response and its dimensions (the strategic flexibility, the strategic sensing, and collaborative intelligence) affect the organizational prestige in a statistically significant manner. the research hypothesis model: figure (1) research hypothesis model strategic response internal prestige strategic flexibility strategic sensing external prestige collaborative intelligenc e american journal of business management, economics and banking volume 13 june, 2023 p a g e | 8 www.americanjournal.org third: results interpretation and analysis: in this section, the validity and reliability tests of the questionnaire and the normal distribution of the study variables will be presented, then followed by the presentation and analysis of the results and the testing of the research hypotheses. for this purpose, it is used a set of statistical methods by adopting the statistical analysis program (spss v.28), and this included three parts as follows: the first part: testing questionnaire validity and reliability the second part: presenting and analyzing the descriptive analysis results of the study variables. the third part: testing the link and impact of the strategic response and organizational prestige. the first part: testing questionnaire validity and reliability: the honesty and reliability are among the conditions that must be met in the questionnaire to become eligible for use in the analytical study, as the validity test is used to confirm the degree of efficiency accuracy of the thirty-seven paragraphs of the questionnaire in representing the subject of the tagged research (the strategic response effect in supporting the organizational prestige / an analytical study in a university). ● testing the questionnaire stability and validity: the stability means that if the scale is applied to the same group of the individuals after a period of time, it will give the same results. the coefficient (cronbach's alpha) was used to determine the stability coefficient in order to achieve this purpose, and the stability coefficient value was (0.92), which is much higher than the acceptable minimum of (60%). this means that the research questionnaire with its various scales is of high stability and can be adopted at different times for the same individuals and gives the same results, and since the value of the stability coefficient, which was extracted by (crounbach alpha) = (0.92), the questionnaire validity = (0.96), which is an excellent ratio and a reassuring coefficient that confirms the scale validity. the second part: presenting and analyzing the field research results: the researchers review the of the descriptive statistical analysis results for the research variables in this part, where the research shows the sample's response level through the matrix of the respondent's response strength, which represents an estimated scale according to the five-point likert scale, and as it is shown in detail in table (1), where we note through it that if the value of the weighted arithmetic mean ranges from (1 to less than 1.8), then the strength of the response means "totally disagree", but if the value of the weighted arithmetic mean ranges between (1.8 to less than 2.6) the strength of the response means "disagree", while if the value of the weighted arithmetic mean ranges (from 2.6 to less than 3.4), then the strength of the response means "neutral", while if the value of the weighted mean was recorded within the category (from 3.4 to less than 4.2), then the strength of the response means "agree", where as if the value of the weighted mean was recorded within the category (from 4.2 to 5), then the strength of the response means "totally agree". table (1) matrix of the respondent's response strength on the questionnaire items category the value of the weighted arithmetic mean is within the period the response strength to the questionnaire paragraphs the response level by the respondent the first from 1 to less than 1.8 totally disagree very low the second from 1.8 to less than 2.6 disagree low the third from 2.6 to less than 3.4 neutral natural the forth from 3.4 to less than 4.2 agree high the fifth from 4.2 to 5 totally agree very high source: karnilev ,sergey sergeyeg , (2002), multiple regression , 1st ed. , publishing honse statistic science library , moscow , russian federation , p :27 . american journal of business management, economics and banking volume 13 june, 2023 p a g e | 9 www.americanjournal.org in the process of the descriptive data analysis, the researchers rely on the weighted arithmetic mean measures, the standard deviations, and relative applied importance to each paragraph of the questionnaire and to all paragraphs of the marketing channels decisions (the independent variable) and marketing leadership (the responsive variable) and the analysis results were as follows: first: describing and diagnosing the paragraphs and criteria of the strategic response dimensions(the independent variable): 1. describing and diagnosing the paragraph(strategic flexibility): table (2) shows the arithmetic mean, standard deviations, and relative importance according to the sample’s description of flexibility and its paragraphs: source: the results statistical analysis results using the spss program. 28.v this dimension was measured through the paragraphs (q1q6), and table (2) indicates the arithmetic mean, the standard deviations, and relative importance related to the point of view of the researched sample regarding the strategic flexibility. the above mentioned table reflects a general arithmetic mean that is higher than the standard arithmetic mean of (3), as it reached (3.97), and the standard deviation reached (0.728), and the relative importance reached (79.4%), and this indicates that there is an agreement in the sample's answers about the strategy flexibility dimension. as for the paragraphs of this dimension, the paragraph (q1) which stated that the (university leaders are working to enable beneficiaries and those wishing to serve education to obtain it with wide flexibility.), has achieved, the highest arithmetic mean by (4.14) and with a standard deviation of (0.889). this means that there is a homogeneity in the sample's answers with a relative importance of (82.8%), which reflects the existence of a high agreement in the answers of the sample, and this indicates (the university leaders are orientating according to a flexible perspective to enable the beneficiaries and those wishing to receive arrangeme nt relative importance standard deviation weighted arithmetic mean item university leaders work on: 1 82.8% 0.889 4.14 enabling beneficiaries and those wishing to obtain education services with wide flexibility. q1 4 79% 0.975 3.95 proactively adjusting its strategies to keep pace with the environmental changes and requirements. q2 6 77.2% 0.990 3.86 having the flexibility to redistribute the knowledge resources to achieve the maximum benefit from them. q3 2 80% 1.18 4.00 bringing together representatives from different departments within our university on a regular basis to discuss all issues of long-term importance. q4 5 0.782 1.09 3.91 providing opportunities to easily obtain various data about the educational institution. q5 3 0.796 1.19 3.98 the information of long-term importance is circulated when obtained by any of the university's departments to other departments. q6 79.4% 0.728 3.97 the arithmetic means, standard deviations, and general relative importance are for the strategic flexibility. x1 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 10 www.americanjournal.org the education service), whereas the paragraph (q3), which stated that the (university leaders work to possess the flexibility of redistributing the knowledge resources to achieve the maximum benefit from them) has achieved the lowest arithmetic mean at the level of this dimension, which reached to (3.86) and with a standard deviation of (0.990), and with a relative importance of (77.2%). this reflects the existence of an agreement in the answers of the sample members regarding this paragraph, and this indicates that (the university leaders have the flexibility to redistribute knowledge resources to make the most of them). 2.describing and diagnosing the strategic sensing paragraph the table (3) shows the arithmetic mean, the standard deviations, and relative importance according to the sample members' description for the strategic sensing and its paragraphs: table (3) the statistical measures of the strategic sensing items n = 43 source: statistical analysis results using spss v.28 this dimension was measured through the paragraphs (q7q11), and table (3) refers to the arithmetic mean, the standard deviations, and relative importance related to the point of view of the researched sample regarding strategic sensing, where the above mentioned table reflects a general arithmetic mean that is higher than the standard arithmetic mean of (3), as it reached (4.01), and the standard deviation reached (0.785), and the relative importance reached (80.2%), and this indicates that there is an agreement in the sample's answers about the leaders' interest at (wasit university) in the strategic sensing. as for the paragraphs of this dimension, the paragraph (8 q),which stated that the (university leaders are keen to modify their strategies proactively to keep pace with the environment changes and arrangement . relative importance standard deviation weighted arithmetic mean item university leaders are keen to: 3 79.6% 1.08 3.98 enabling the beneficiaries and those wishing to obtain the education services with a wide flexibility q7 1 82.4% 0.793 4.12 proactively adjusting its strategies to keep pace with the environmental changes and requirements q8 2 81% 0.950 4.05 possessing the flexibility to redistribute the knowledge resources to achieve the maximum benefit from them. q9 5 78.6% 0.936 3.93 bringing together the representatives from different departments within our university on a regular basis to discuss all issues of long-term importance. q10 4 79% 1.17 3.95 providing the opportunities to obtain various data easily about the educational institution q11 80.2% 0.785 4.01 the standard deviations, the arithmetic mean, and general relative importance are for the strategic sensing dimension. x2 american journal of business management, economics and banking volume 13 june, 2023 p a g e | 11 www.americanjournal.org requirements), has achieved the highest arithmetic mean of (4.12) and with a standard deviation of (0.793), and with a relative importance of (82.4%), which reflects the existence of a high agreement in the respondents' answers, and this indicates that (the leaders have a high sense of sensitivity that enables them to modify their strategies proactively to adapt to the changes that occur in the environment.), while the paragraph (10 q), which stated that (the university leaders are keen to gather the representatives of the various departments within our university on a regular basis to discuss all issues of long-term importance) has achieved the lowest arithmetic mean at the level of this dimension, which reached(3.93) and a standard deviation of (0.936), with a relative importance of (78.6% ), which reflects the existence of an agreement in the answers of the sample members regarding this paragraph, and this indicates that the (university leaders are interested in collecting visions and ideas regarding the issues of long-term importance that concern the university on a regular basis to achieve the greatest amount of knowledge and awareness concerning these issues). 3. describing and diagnosing the collective intelligence paragraphs the table (4) shows the arithmetic means, the standard deviations, and relative importance according to the description of the sample, collective intelligence, and its paragraphs: table (4) the statistical measures of the collective intelligence items 3 n = 4 arrangement. relative importance standard deviation weighted arithmetic mean item university leaders work on: 1 82.4% 1.16 4.12 activating the collective intelligence and enhancing the cooperation spirit between the individuals q12 3 79. 6% 0.913 3.98 making the collective intelligence as an assistant in achieving new facilities at work q13 4 79% 0.899 3.95 adapting and responding to the challenges through the collective intelligence q14 5 79% 0.999 3.95 making the collective intelligence as a means of developing the individuals and groups and supporting the innovation q15 6 79% 1.07 3.95 the collective intelligence should be a motivation for the development of the vision q16 2 81.4% 0.768 4.07 the collective intelligence should have a role in providing solutions for various problems q17 7 78.6% 1.01 3.93 the collective intelligence should be supportive of discovering advanced solutions at the individual and collective level q18 79.8% 0. 746 3.99 the standard deviations, the mean, and general relative importance are for the collective intelligence dimension x2 source: the statistical analysis results using the statistical program 28.spss v this dimension was measured through paragraphs (q12-18q), and the table (4) indicates the arithmetic mean, the standard deviations, and relative importance related to the point of view of the researched sample regarding the collective intelligence, where the above mentioned table reflects a general arithmetic mean that is higher than the standard arithmetic mean of (3), as it reached (3.99), and the standard deviation reached (0.746), and the relative importance reached (79.8%), and this indicates that there is an agreement in the sample's answers on the collective intelligence. as for the paragraphs of this dimension, the paragraph (12 q), which stated that (the university leaders work to activate the collective intelligence and enhance the cooperation spirit between the individuals.), has achieved the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 12 www.americanjournal.org highest arithmetic mean (4.12) and a standard deviation of (1.16), with a relative importance of (82.4). %), which reflects the existence of a high agreement in the sample's answers, and this indicates that (the university leaders orientation and their high interest are to activate the collective intelligence and enhancing the cooperation spirit between individuals), whereas, the paragraph (18 q), which stated that the (university leaders work to ensure that the collective intelligence is supportive of discovering advanced solutions at the individual and collective level) has achieved the lowest arithmetic mean at the level of this dimension, which reached (3.93) and a standard deviation of (1.01) and with a relative importance of (78.6%), which reflects the existence of agreement on the sample's answers regarding this paragraph, and this indicates that the (universal leaders are working to find solutions by focusing on the collective intelligence of their employees at the individual and collective levels). as for the description of the independent variable (strategic response) at the overall level, it is clear from the table (5) that the level of responses for the strategic response is as follows: table (5) the responses level to the strategic response dimensions dimensional arrangement standard deviation weighted arithmetic mean strategic response third 0.728 3.97 strategic flexibility first 0.785 4.01 strategic sensing second 0. 746 3.99 collective intelligence 0.639 3.99 strategic response source: the statistical analysis results using the statistical program 28.spss v 1. based on the arithmetic mean values for the independent variable dimensions , the independent variable achieved the strategic response at the total level with an average of (3.99) and a standard deviation of (0.639), and this indicates an agreement in the respondents' response to the strategic response items. 2. the strategic sensing dimension achieved the highest arithmetic mean between the strategic response dimensions according to the opinions of the research sample, followed by the collective intelligence dimension, then the strategic flexibility dimension comes in the last place. second: describing and diagnosing the paragraphs and criteria of organizational prestige (the responsive variable) 1. describing and diagnosing the external prestige paragraphs: the table (6) shows the arithmetic means, the standard deviations, and relative importance according to the sample’s description of the external prestige and its paragraphs american journal of business management, economics and banking volume 13 june, 2023 p a g e | 13 www.americanjournal.org table (6) the statistical measures of the external prestige items n = 43 arrangement relative importance standard deviation weighted arithmetic mean item 1 91.6% 0.626 4.58 the university has a good reputation in the community q19 3 85.2% 0.875 4.26 the university employees are respected and distinguished members of the society q20 9 71.6% 0.957 3.58 the university is considered to be one of the best in the country q21 10 64.6% 1.09 3.23 sometimes the university loses credibility compared to other universities with regard to its responsibility towards the society q22 2 85.6% 1.05 4.28 the working individuals feel proud when their children enter the colleges and affiliated departments q23 6 76.2% 0.958 3.81 the employees are diligent in their work and affiliation to the university because they want to move forward in developing their careers q24 4 82.8% 0.675 4.14 the staff seeks to build a selfperceived mental image of the university q25 8 74% 1.04 3.70 the senior management works to develop the career future for those with creative abilities to provide an organizational reputation q26 5 76.2% 0.852 3.81 the management seeks to reduce the gap between the level of work and the prestige of the organization q27 7 75.8% 0.940 3.79 the senior management seeks to adopt technology that matches the level of future expectations q28 75.3% 0.584 3.76 the arithmetic means, the standard deviations, and general relative importance are for the external prestige source: the statistical analysis results using the statistical program 28.spss v this dimension was measured through the paragraphs (q19q28) and the table (6) refers to the arithmetic mean, the standard deviations and relative importance related to the point of view of the researched sample regarding the external prestige, as the above mentioned table reflects a general arithmetic mean that is higher than the standard arithmetic mean of (3), and t reached to (3.76), and the standard deviation reached (0.584), and the relative importance reached (75.3%), and this indicates that there is an agreement in the sample's answers about the external prestige, as for the paragraphs of this dimension, the paragraph (19 q), which stated that (the university has a good reputation in society.), american journal of business management, economics and banking volume 13 june, 2023 p a g e | 14 www.americanjournal.org has achieved the highest arithmetic mean of (4.58) and a standard deviation of (0.626), with a relative importance of (91.6%), which reflects the existence of a very high agreement in the respondents answers. this indicates that (the the university possesses a positive mental image at a very high level in the mind of society), while the paragraph (22 q), which stated that (the university sometimes loses credibility compared to other universities with regard to its responsibility towards society) has achieved the least arithmetic means at the level of this dimension, and it reached to (3.23), which is lower than the standard arithmetic mean of (3), and with a standard deviation of (1.09). this reflects the existence of a dispersion in the answers of the sample individuals, with a relative importance of (64.6%), which reflects the presence of neutrality in the answers of the sample members regarding this paragraph, and this indicates that (the university leaders may not have a clear vision of the performance of other universities towards their society as well as comparing their performance with the performance of those universities towards the society). 2. describing and diagnosing the internal prestige paragraphs the table (7) shows the arithmetic mean, the standard deviations and relative importance according to the sample’s description of the internal prestige and its paragraphs table (7) the statistical measures of the internal prestige items n=43 arrangement relative importance standard deviation weighted arithmetic mean item 2 83.8% 1.01 4.19 my manager is better than other managers q29 1 91.2% 0.590 4.56 many people want to be appointed to the university to which they belong q30 9 51.2% 1.2 2.56 the employees feel that the university has little value in the society q31 6 74.8% 0.954 3.74 the university administration works to achieve an integration between the public relations activities and social network for transactions and internal relations q32 8 67.4% 1.16 3.37 the university administration adopts ideas that exceed the expectations of the auditors and their changing demands q33 4 79% 0.950 3.95 the employee seeks to advance his professional status more than to be associated with his manager at work q34 3 81% 0.722 4.05 the employees respect the manager's opinions and ideas most of the time q35 7 74.4% 0.934 3.72 the professional colleagues within the university value unique traits such as the intelligence and talents q36 5 75.4% 1.16 3.77 the university administration evaluates the employee's abilities and personal knowledge q37 75.4% 0.584 3.99 the arithmetic means, the standard deviations, and general relative importance are for the internal prestige source: the statistical analysis results using the statistical program 28.spss v this dimension was measured through paragraphs (37 q29-q), and the table (7) refers to the arithmetic mean, the standard deviations and relative importance related to the point of view of the researched sample regarding the internal prestige, as the above mentioned table reflects a general arithmetic mean that is higher than the standard arithmetic mean of (3) and it reached (3.99), and the standard deviation american journal of business management, economics and banking volume 13 june, 2023 p a g e | 15 www.americanjournal.org reached (0.584), and the relative importance reached (75.4%), and this indicates that there is an agreement in the respondents’ answers about the internal prestige. as for the paragraphs of this dimension, the paragraph (30 q), which stated that (many individuals want to be appointed in the university to which they belong) has achieved the highest arithmetic mean of (4.56) and with a deviation standard of (0.590), and a relative importance of (91.2%), which reflects the existence of a high agreement in the sample answers, and this indicates that the university is considered the most desirable place where people like to be worked or employed in it and this shows the reputation and positive image that the university enjoys, whereas the paragraph (31 q), which stated that the (employees have low value toward the university in the society), has achieved the lowest arithmetic mean at the level of this dimension, which reached to (2.56), which is lower than the standard arithmetic mean of (3), and with a standard deviation of (1.2), and a relative importance of (51.2%), which reflects the existence of disagreement in the respondents' answers regarding this paragraph, and this indicates that (the university employees have a high value toward the university in the society). as for the description of the respondent variable (organizational prestige) at the overall level, it is clear from the table (8) that the level of responses about the organizational prestige is as follows: table (8) the answers level on the organizational prestige dimensions dimensional arrangement standard deviation weighted arithmetic mean organizational prestige second 0.886 3.76 external prestige first 0.584 3.99 internal prestige 0.531 3.84 organizational prestige source: the statistical analysis results using the statistical program 28.spss v 1. based on the arithmetic mean values of the of the responding variable dimensions , the variable achieved the organizational prestige at the overall level, with a mean of (3.84) and a standard deviation of (5310), and this indicates that there is an agreement in the respondents' answers about the organizational prestige items. 2. the internal prestige dimension achieved the highest arithmetic mean among the organizational prestige dimensions according to the opinions of the research sample, and the external prestige dimension came last. the third part: examining the link and impact of the strategic response and organizational prestige. first: testing the correlations between the research variables the analysis of the hypothetical research scheme requires testing its main and sub-hypotheses according to their inclusion in the research methodology. this paragraph seeks to determine the nature of the relationship between the independent variable (strategic response) and the responding variable (organizational prestige) and to know the extent of the acceptance or rejection of the first main hypotheses, and their branches, by using the simple correlation coefficient (pearson correlation), which american journal of business management, economics and banking volume 13 june, 2023 p a g e | 16 www.americanjournal.org is one of the statistical methods used to measure the strength and direction of the relationship between the two variables by using the ready-made statistical program (spss) version 28. and to analyze the nature of the relationships between these variables, pearson correlation coefficients were calculated to examine the existence of the relationship, as in the following table (9): table (9) the pearson rank correlation coefficients to examine the existence of the relationship between strategic response and organizational prestige n=43 the strength relationship p-value sig. (2tailed) pearson correlation variables hypothesis dependent independent weakness not significant. 0.109 0.248 organizational prestige strategic flexibility 1-1 sub medium significant. 0.002 0.461** organizational prestige strategic sensing 2-1 medium significant. 0.001> 0.529** organizational prestige collective intelligence 3-1 medium significant. 0.001> 0.488** organizational prestige strategic response the first main hypothesis three out of four hypotheses no. accepted hypotheses source: statistical analysis results by using spss v.28 note: the symbol * means that the value of the correlation coefficient is significant at a significant level (0.05), and the symbol ** means that the value of the correlation coefficient is significant at a significant level (0.01) the table (9) indicates that there is a medium significant correlation at the sig level of significance (2-tailed) (>0.001), that is, with the confidence limits greater than 99.9% between the strategic response and organizational prestige, where the value of the pearson rank correlation coefficient was (0.488), and this result indicates that there is a moderate direct correlation between the strategic response and organizational prestige on the overall level, and this result shows that there is a greater interest in the strategic response, and this leads to a rise in the level of the organizational prestige at the university from the point of view of the researched sample, so the first main hypothesis is accepted, which states (there is a statistically significant correlation between the strategic response and organizational prestige ), this means it is at the macro level of the basic dimensions. below there is an analysis of the sub-relationships between the dimensions of strategic response and organizational prestige at the level of sub-hypotheses. 1.1. analyzing the relationship between strategic flexibility and organizational prestige in table (9), we notice that the correlation coefficient value between the strategic flexibility and organizational prestige was (0.248), which is a weak and non-significant correlation at the level of sig's significance (2-tailed) (0.109), that is, with a confidence level of less than 90%, and this level of confidence is not acceptable in administrative research. this result indicates that there is no significant correlation between the strategic flexibility and organizational prestige from the point of view of the studied sample, so this result does not support the research's first sub-hypothesis emanating from the american journal of business management, economics and banking volume 13 june, 2023 p a g e | 17 www.americanjournal.org first main hypothesis. this means that this hypothesis is rejected, and there is no significant correlation between the strategic flexibility and organizational prestige. 1.2. analysis of the relationship between the strategic sensing and organizational prestige: in table (9), we note that the correlation coefficient value between the strategic sensing and organizational prestige reached to (0.461), which is a direct, medium-strong significant correlation at a significant level (0.002) (sig. (2-tailed), and with a confidence limit of 99.8%. this result indicates that there is a greater interest in the strategic sensing, and this leads to a rise in the level of organizational prestige, meaning that the organizational prestige of the university can be strengthened in general by making simply a positive change in strategic sensing, and this result supports the research's second subhypothesis emerging from the first main hypothesis. this means that this hypothesis is accepted, that is, there is a statistically significant correlation between the strategic sensing and organizational prestige. 1.3. analysis of the relationship between the collective intelligence and organizational prestige in table (9), we note that the correlation coefficient value between the collective intelligence and organizational prestige reached to (0.529), which is a direct, medium-strong significant correlation at the level of significance (<0.001) sig. (2-tailed), that is, with a confidence limit of greater than 99.9%, and this result indicates that there is a greater interest in the collective intelligence, so this leads to a rise in the level of organizational prestige, meaning that the organizational prestige of the university can be strengthened in general by making simply a positive change in the collective intelligence, and this result supports the research's third sub-hypothesis emanating from the first main hypothesis, and this means that this hypothesis is accepted, that is, there is a statistically significant correlation between the collective intelligence and organizational prestige. commenting on the results of the above tests, it was found that the dimension that achieved the highest correlation coefficient with the responding variable (organizational prestige) among the dimensions of the independent variable (strategic response) was the (collective intelligence) dimension, while it came second after (strategic sensing) with the responding variable prestige organizational, whereas, the dimension(strategic flexibility), it came fourth and last, with a weak and non-significant relationship with the organizational prestige, and this requires the university to pay attention to the continuous positive changes in the strategic sensing and collective intelligence because of their direct positive correlation that in turn leads to support the organizational prestige. second: testing the effect between research variables this paragraph seeks to test the second main research hypothesis related to testing the effect between the research variables: the strategic response (the independent variable) and organizational prestige (the responsive variable) and its hypotheses by using a simple linear regression analysis. 1. testing the effect of the strategic response on the organizational prestige: testing the validity of the second main hypothesis of the research, whether there is a significant effect of the strategic response and its sub-dimensions on the organizational prestige in general or not, a simple linear regression analysis was used, and the results were as in table (10) below: american journal of business management, economics and banking volume 13 june, 2023 p a g e | 18 www.americanjournal.org table (10) a variance analysis table for the strategic response equation in the organizational prestige n = 43 r square % constant regression coefficient p-value sig. (2tailed) ftest variables hypothesis depende nt independent 6.2% 3.124 0.181 0.109 2.687 organiza tional prestige strategic flexibility 1-1 sub 21.2% 2.594 0.311 0.002 11.048 strategic sensing 2-1 28% 2.338 0.376 0.001> 15.921 collective intelligence 3-1 23.8% 2.224 0.405 0.001> 12.838 organiza tional prestige strategic response the first main hypothesis three out of four hypotheses no. accepted hypotheses source: statistical analysis results by using spss v.28 table (10) shows the f-test values for the model as a whole, and the value of the f-test for the strategic response in the organizational prestige was (12.838), with the significance level of sig. (2-tailed) (>0.001), this means that there is a significant effect of the strategic response on the organizational prestige at a confidence level greater than (99.9%), and the value of the constant was (α = 2.224), which means that there is an existence of (strategic response) (2.224) in the university under study, even if the organizational prestige is zero, and the value of the β coefficient, which represents the value of the slope of the regression line, is (0.405), which is interpreted as the amount of the change in the value of the responsive variable when there is a change of one unit in the value of the independent variable. this mean that the value increase of the strategic response variable by one unit will lead to a change of (0.405) in the organizational prestige of the university under study. the value of the determination coefficient (r2) of (0.238), which means that is (23.8%) of the variation in the organizational prestige at the university that is under the study, is an explained variation by the strategic response that was used in the model, and that (76.2%) is an explained variation by factors that were not used in the regression model of the current study, so the second main hypothesis of the research is accepted, that is, there is a statistically significant effect of the strategic response on the organizational prestige, and below there is an analysis of the sub-effects of the strategic response on the organizational prestige, with its individual dimensions, in the organizational prestige at the level of sub-hypotheses. 2.1. analyzing the of strategic flexibility impact on the organizational prestige to test the validity of the first sub-hypothesis emanating from the second main hypothesis, table (10) shows the f-test values for the strategic flexibility in the organizational prestige, which reached (2.687), with the significance level of sig. (2-tailed) (0.109), this means that there is no significant effect of the strategic flexibility in the organizational prestige, and this result does not support the first subhypothesis, so the first sub-hypothesis is rejected within the second main hypothesis of the research, i.e. there is no statistically significant effect of the strategic flexibility in the organizational prestige. 2.2 analyzing the strategic sensing impact on the organizational prestige. to test the second sub-hypothesis validity emanating from the second main hypothesis, table (10) shows the f-test values for the environmental sensing in the organizational prestige, which reached (11.048), american journal of business management, economics and banking volume 13 june, 2023 p a g e | 19 www.americanjournal.org with the significance level of sig. (2-tailed) (0.002), and this means that there is a significant effect of the environmental sensing on the organizational prestige at a confidence level of 99.8%, and the value of the constant was (2.594α=), which means that there is an environmental sensing presence of an amount of (2.594) for the university under study, even if the organizational prestige is zero, and the value of β coefficient is (0.311), this means that there is an increase in the value of the strategic sensing by one unit ,which will lead to a change of (0.311) in the organizational prestige at the university under study, and the determination coefficient value (r2) of (0.652), which means that is (21.2%) of the variation in the organizational prestige at the university under study, is explained variation by the strategic sensing that was used in the model, and that (78.8%) is an explained variation by the factors that were not used in the regression model of the current study, so the second sub-hypothesis is accepted within the second main hypothesis of the research, that is, there is a statistically significant effect of the environmental sensing in the organizational prestige. 2.3. analyzing the collective intelligence influence in the organizational prestige to test the validity of the third sub-hypothesis emanating from the second main hypothesis, table (10) shows the values of the f-test for the environmental group intelligence in the organizational prestige, which amounted to (11.048), with the significance level of sig. (2-tailed) (0.002). this means that there is a significant effect of the collective intelligence on the organizational prestige at a confidence level of 99.8%) , and the value of the β coefficient reached (0.311), which means that there is an increase of the value of the collective intelligence by one unit that will lead to a change of (0.311) in the organizational prestige of the university under study, even if the organizational prestige was equal to zero, and the value of the β coefficient was (0.311), that means that that there is a value increase of the collective intelligence by one unit that will lead to a change of (0.311) in the organizational prestige of the university under study. then, the value of the determination coefficient (r2) of (0.652), which means that is (21.2%) of the variation in the organizational prestige at the university under study, is an explained variation by the collective intelligence that was used in the model, and that (78.8%) is an explained variation by the factors that were not used in the regression model of the current study, so the third sub-hypothesis is accepted within the second main hypothesis of the research, i.e. there is a statistically significant effect of the collective intelligence in the organizational prestige. it is clear from the results of the linear regression test between the variables of the study that the dimension that is most affected in the responding variable (organizational prestige) compared to the rest of the other dimensions of the strategic response, is the (collective intelligence) dimension, where the regression coefficient achieved percentage of (37.6%), and it came within the first rank, while it came within the second rank in terms of effect, after (strategic sensing), with a regression coefficient of (31.1%), which made it to be in second rank, while there was no significant effect of the strategic flexibility dimension on organizational prestige. conclusions: 1. it was clear from the statistical analysis results that the strategic response enjoyed by the university in question, increased its ability to adapt to its external environment and the changes in that environment, which raised its competitiveness in the business environment, which will reflect positively on the strategic future of the organization, and gives it the status and prestige that enhances of its longterm survival. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 20 www.americanjournal.org 2. the weak correlation and influence of the strategic flexibility in enhancing the prestige of the organization externally and internally reflected in a decrease in the levels of the university's possession of the sufficient flexibility to redistribute the knowledge resources, and in providing the opportunities to obtain data, as well as a decrease in the level of proactively adjusting strategies to keep pace with the changes in the external environment. 3. the results of the statistical analysis showed that the two dimensions of the strategic sensing and collective intelligence were associated with the significant positive relationships and a significant impact for each of them in achieving the prestige of an organization and supporting it, which means that these dimensions clearly participate in the interpretation and support of the prestige if the university responds to the environmental developments in a way that allows it to progress like other advanced universities. 4. the university was able to achieve a level of strategic response at a positive level, represented in the crystallization of the compatibility system, including proving and strengthening its prestige in terms of its goals and values, to enhance the worker’s sense of harmony with his university, because he carries his university's characteristics and, that he belongs to it directly and indirectly, as well as his feeling of pride of it in front of others. moreover, they view their organizations as occupying a prominent position among other universities, and that they are individuals who enjoy a high degree of positivity and belonging, which also reflects positively on their presentation of the valuable outputs to their university. recommendations: 1. working to find a coordination and harmony between the university's possession of the sufficient flexibility of resources with a redistribution in a manner that achieves the maximum benefit from them, with ensuring that the information is circulated to all departments of the university without exception, and this requires authorizing powers to all departments, which allows to a large extent to achieve the effectiveness, the responsiveness and harmony in work. 2. achieving the organizational prestige depends clearly on the strategic sensing primarily with the collective intelligence and high strategic flexibility. therefore, the university administration must pay clear attention to the needs and proposals of the society, and the important decisions, especially those related to bearing social responsibility in front of society, require that these decisions serve the objectives of the society and its needs. 3. the need to pay attention to the workers and not to neglect their role and make them feel proud of their belonging to the university to which they belong and encourage them to move forward in developing their professional lives in a way that ensures building a mental image of their university. 4. emphasizing on increasing the interest of the researched university in developing an appropriate strategy to consolidate the perceived internal prestige in the minds of workers, and to highlight its role in the role of the university and its position in the environment by holding seminars, scientific conferences, panel discussions, and preparing training programs that contribute to consolidate values about the importance of these concepts for all its employees. american journal of business 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(2010). does brand management of corporate reputation translate into higher market value? journal of strategic marketing , 18(3), 201-221. 30. triaa, w., gzara, l., & verjus, h. (2016, august). organizational agility key factors for dynamic business process management. in 2016 ieee 18th conference on business informatics (cbi) (vol. 1, pp. 64-73). ieee. 31. yıldız, kaya,(2018)," the effects of organizational prestige on organizational identification: a case study in primary schools",european journal of education studies, volume 4 , issue 7. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 145 www.americanjournal.org prospects of pilgrimage tourism development in uzbekistan davlatov azizbek abdullajon o’g’li termiz davlat universiteti xorijiy filologiya fakulteti gid hamrohligi va tarjimonlik faoliyati: ingliz tili yo’nalishi 2-kurs talabasi a b s t r a c t k e y w o r d s this article provides feedback on the goals of tourism development in uzbekistan. in recent years, the work being done in our country to improve this area and their effectiveness have been analyzed. it also analyzes existing shortcomings in the field of tourism and provides suggestions for addressing them. new uzbekistan, tourism, sacred steps, islam, mosques and tombs, religious tourism. introduction: the experience of developed countries shows that tourism is one of the most prosperous areas in the development of each country and in the well-being of the people. this is also reflected in the experience of countries that have achieved great success in tourism, such as turkey, saudi arabia, spain, and france. in recent years, a number of reforms have also been undertaken in the new world to improve tourism, especially tourism. after all, there is both material and spiritual potential in our country to develop this area. the great allies who lived in our country in our country, such as samaria, bucharest, hiva, thermal, and zarephath, as well as the pilgrimages of the great men who have gained respect in the islamic world, and the great opportunities for the development of tourism in buildings and buildings popular throughout the islamic world. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been published. resolution of the cabinet of ministers of the republic of uzbekistan "on additional measures for the development of domestic tourism" on february 24, 2021 for the development of the sphere1, february 3, 2018, "additional measures to create favorable conditions for the development of tourism potential of the republic of uzbekistan"2 the decree was adopted, and these documents serve as the legal basis for the development of the industry. 1 see the february 24, 2021, issue of the united nations declaration on the elimination of all forms of discrimination against women . 2 order of the president of the republic of uzbekistan, february 3, 2018, "additional organizational measures to create affordable conditions for the development of tourism safety in the republic of uzbekistan." american journal of business management, economics and banking volume 13 june, 2023 p a g e | 146 www.americanjournal.org discussion and results indeed, today uzbekistan has attracted the attention of foreign tourists and visitors with its rich history, unique cultural heritage, many scholars and scholars who have contributed greatly to the development of world civilization, ancient monumental monuments, ugly cuisine, and folk art. the presence of cultural heritage sites of representatives of various religions in the region is one of the most important factors contributing to the widespread development of tourism in the country and the increase in the flow of foreign visitors. on february 21-23, 2019, the first international visit tourism forum was held in bucharest to further develop the tourism industry in the country and to exchange experiences in this regard3. the event was attended by scientists and experts from tourism and religion from more than 130 countries around the world. the forum was widely covered by more than 20 media outlets and internet networks worldwide. the bukhara declaration adopted at the end of the event recognized uzbekistan as one of the pilgrimage tourism centers. the country surprises visitors with its attractive pilgrimages. ancient mosques, monasteries, and caravans decorated with verses and accounts of the koran, which serve the development of religious tourism, will undoubtedly attract any traveler. along with the tourist potential of the republic, our national traditions and values, which have been counted for centuries, attract the attention of tourists. given the above analysis in our country, it should be noted that the growing interest in religious tourism plays a special role in the development of tourism. religious tourism, or the spiritual needs of people, is also contributing to an increase in the number of visitors. uzbekistan is becoming one of the world's leading countries in terms of tourism and attracting foreign tourists. the tourism industry requires constant research, investment and the efficient use of modern technologies. therefore, it is extremely important for uzbekistan to preserve the historical and cultural heritage of the republic in order to further develop this strategically important area. from this point of view, preserving, repairing the tombs of great scholars, writers, and cosmopolitan scholars renowned in the islamic world, as well as studying the rich spiritual heritage of these scholars, and translating their works into world languages, are among the most important aspects of tourism. to this end, in recent years, our country has established activities such as the imam buxorah international research center, the imam international research center, the imam moturidiy international research center, and the centers for islamic civilization in the united states. these centers are tasked with studying the works of imam buxorah, imam imam, imam moturidiy, burhoniddin margoni, and other scholars who grew up in our country, preparing public brochures for them, and organizing conferences, symposiums, and training seminars on the country's opportunities for tourism, which also serves to bring the industry to a new phase in quality. the international academy of islam of uzbekistan also establishes a "visit tourism" course, which prepares qualified specialists serving in the field4. as a result of the reforms that are taking place in the field of tourism in our country, the world's most influential media highly esteem uzbekistan's tourism potential and recommend that foreign tourists visit the country. for example, an article published by the famous newspaper axbarul yovm (news of the day) in the kingdom of saudi arabia, considered one of the world's leading countries in the field 3 shavkatova s.s. ziyorat turizmi. mahmud anjir fag’naviy – buxoroyi sharifning uchinchi piri. issues of science and education. 2020. № 9. – p. 119-126. 4 kadirov d.kh. development of halal tourism in uzbekistan // bulletin of science and education, 2020. № 6-1 (84). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 147 www.americanjournal.org of tourism, highly recognized the tourist potential of uzbekistan and provided information on the most famous sacred steps in the islamic world in our country. the list of cities recommended by the telegraph of great britain to visit tourists also shows that the presence of cities in uzbekistan, such as samarkand, bucharest, and khiva, is a growing interest in uzbekistan, its culture, traditions, and values in the world. conclusion instead, despite the fact that uzbekistan has great potential for tourism, it is impossible to say that this security is being fully utilized today. there are still a number of shortcomings in the industry, bureaucratic barriers that are contributing to a slowdown in industry growth. for example, the inadequacy of hotels that fully meet the requirements of foreign tourists, the lack of adequate conditions for tourists around sacred steps and pilgrimages, the introduction of a visa regime with a number of countries, and, as a result, the artificial barriers faced by visitors. overcoming these obstacles, simplifying the visa regime, developing a network of hotels, and preparing various videos and quality exhibition materials on the tourist opportunities of our country are among the main factors that have a significant impact on the development of the industry. literature list 1. see the february 24, 2021, issue of the united nations declaration on the elimination of all forms of discrimination against women . 2. order of the president of the republic of uzbekistan, february 3, 2018, "additional organizational measures to create affordable conditions for the development of tourism safety in the republic of uzbekistan." 3. s.s. shavkatova. ziyorat turizmi. mahmud anjir fag’naviy – buxoroyi sharifning uchinchi piri. issues of science and education. 2020. № 9. – p. 119-126. 4. k.o. qayumov. o’zbekistonda ziyorat turizmini rivojlantirish istiqbollari. international scientific review. 2020. – b.73-78. 5. d.h. kadirov. development of halal tourism in uzbekistan // bulletin of science and education, 2020. № 6-1 (84). american journal of business management, economics and banking issn (e): 2832-8078 volume 2, | july, 2022 p a g e | 1 www.americanjournal.org al baraka banking group nizomova mehrangiz jamoliddinzoda denau institute of pedagogy and entrepreneurship, 2nd year student e-mail: nizomovamehrangiz@gmail.com a b s t r a c t k e y w o r d s in this article, the brief history, branches and financial results of the international al baraka banking group, which ranks high on all sides, are discussed in detail, and conclusions are given on the application of its experience in uzbekistan. abg, islamic banking, e-banking, covid-19. introduction al baraka group b.s.c ("abg/group") is licensed by the central bank of bahrain as a category 1 (islamic principles) investment business firm and is listed on the bahrain stock exchange. it is a leading international islamic financial group providing financial services through its banking branches in 16 countries, offering retail, corporate, treasury and investment banking services in strict compliance with the principles of islamic shariah. the group has a wide geographic presence with operations in jordan, egypt, tunisia, bahrain, sudan, turkey, south africa, algeria, pakistan, lebanon, saudi arabia, syria, morocco and germany, along with two branches in iraq and a representative office in libya. it provides its services in more than 600 branches. the abg network serves nearly one billion customers. the head office it and information security steering committee manages and supports it strategies, policies, projects and initiatives across all al baraka group subsidiaries, and their strategic objectives for the group and each subsidiary's local ensures compliance with the strategy. materials if the probability of islamic banking turns out to be correct, it will attract 40-50 percent of muslim savings in the coming years, which can become a useful resource for the needs of established banks, provided that they establish branches that can serve muslims. in addition, interest rates will be the cornerstone of financial repression, giving much space to the role of state control. this includes several countries that prohibit banks from paying or charging interest on deposits and loans for religious reasons. if banks cannot use the interest rate as an intermediary between borrowers and lenders, a natural question arises as to how they will work. does the west have much to learn from countries that have developed islamic products and systems? some major western banks, including citibank, hsbc, goldman sachs and ubs, certainly think so, and all have recently opened islamic banking branches. [1] american journal of business management, economics and banking volume 2, july, 2022 p a g e | 2 www.americanjournal.org each islamic finance product presents different types of risks and exposures that are accepted by the bank (which is different from conventional banks which mainly have the problem of default risk). for example, if the islamic bank enters into a joint-stock company within the scope of the partnership agreement, it will have the risk of suffering losses until the cooperation continues. in the murobaha transaction, the bank has the risk of losing the property (asset) during the ownership period (that is, until the property is sold). in lease contracts, the bank bears the risk until the ownership of the property is transferred to the client. in this way, islamic banking demonstrates that the ratio of risk to profit is economically reasonable. such a banking system meets the needs of both customers and the general public and provides an opportunity for a fair distribution of wealth. [2] methods in this study, logical and comparative analysis, grouping methods, as well as research works of foreign and local scientists and official statistical websites were widely used. results the group's short, medium and long-term it strategies are now well established and standardized around carefully selected core banking solutions that have been successfully implemented across all abg subsidiaries. the head office it and information security steering committee monitors the group's it strategy and periodically updates it to enable abg to achieve its strategic objectives. abg's web-based financial consolidation and reporting solution measures corporate performance against key performance indicators based on the group's strategic objectives. this solution is used to set benchmarks for each subsidiary and continuously monitor its performance. it collects data from each subsidiary in its local currency and performs monthly, quarterly and annual consolidations in us dollars. the data is then collected, processed, reported and analyzed across all subsidiaries. all subsidiaries of the group have core banking systems, which are selected according to the list approved by the head office and which meet the requirements of the central bank for further automation. subsidiaries are currently implementing satellite systems in areas such as risk management, cyber security, internet and mobile banking. head office it and information security steering committee with subsidiaries to comply with the anti-money laundering and know your customer international rules, as well as the foreign account tax compliance act (fatca) is working to implement systems that automate the compliance process. these systems also check transactions against the office of foreign assets control (ofac) sanctions list. each subsidiary has a disaster recovery center that is tested and audited at least once a year. the group has integrated a business continuity and disaster recovery standard that has helped all subsidiaries adopt best practices. in addition, the group ensures that its subsidiaries have the right people, technology and policies in place to protect against cyber-attacks and fraud. it provides best practice frameworks and guidelines with oversight obligations to ensure compliance and effective implementation. corporate profile the bank offers innovative products and services based on islamic shariah principles, including corporate and retail financing, investments, international trade financing and short-term liquidity management. american journal of business management, economics and banking volume 2, july, 2022 p a g e | 3 www.americanjournal.org al baraka islamic bank ("aib" or the "group") is a retail islamic bank licensed by the central bank of bahrain ("cbb") and registered with the bahrain ministry of industry, trade and tourism under number 14400. the group's existing authorized capital is 600 million us dollars, issued and paid-up capital is 136.5 million. the group is one of the leading financial institutions in the islamic banking sector. since its inception in 1984, aib has been instrumental in establishing the foundations of islamic finance. the group is instrumental in promoting islamic banking and publicizing its benefits. the group has a good and high reputation in the communities where it operates. the group offers innovative products and services to its esteemed customers, demand for such products, obtaining savings and investment accounts, providing murabaha financing, lease financing and other shariah-compliant forms of financing, shariah-compliant forms of financing, as well as mudoraba of investors' money or includes agency-based fee management, commercial banking services and other investment activities. the group has achieved outstanding results due to its extensive knowledge of islamic fiqh (law) in banking operations, the diverse experience of its executive management team and the strong and deep financial position of its ultimate parent company (al baraka banking group). since its inception, the group has managed funds on behalf of many major financial institutions and high net worth individuals seeking long-term and financial returns through the use of shariah-compliant instruments. in 2010, the group completed the merger of its branches in pakistan (which began operations in 1991) with emirates global islamic bank limited to form al baraka bank pakistan limited (“abpl”). following this, in 2016, abpl acquired burj bank limited, which led to the addition of 74 new branches and a total of over 150 branches in addition to a network of over 150 branches in over 100 cities and towns across pakistan and increased its workforce to more than 2,500 specialists. in 2012, the group acquired a majority stake in itqan capital, a closed joint-stock company registered in the kingdom of saudi arabia and licensed by the capital market authority. itqan capital provides asset and portfolio management, as well as custody, research and advisory services. aib is one of the banking divisions of al baraka banking group ("abg" or "ultimate parent"). abg is a bahraini joint stock company listed on the bahrain stock exchange and nasdaq dubai. the parent company offers retail banking, corporate banking, investment banking and treasury services in accordance with islamic shariah principles. the authorized capital of the parent company is usd 1.5 billion, and the total equity capital is approximately usd 2.3 billion. abg has a wide geographical presence in the form of subsidiary banking units and offices in 16 countries, which in turn provide shariah-compliant banking products and services through more than 600 branches. these bank branches are located in bahrain, jordan, pakistan, algeria, sudan, south africa, lebanon, tunisia, egypt, turkey and its branches in iraq, syria, morocco, and representative offices in indonesia and libya. abg's vision of the future: they believe society needs a fair and impartial financial system, one that rewards effort and contributes to community development. their mission is to serve the banking needs of their communities by conducting their operations ethically and in accordance with their beliefs, applying the highest standards of professionalism, and sharing mutual interests with their customers, employees and shareholders who contribute to their success. american journal of business management, economics and banking volume 2, july, 2022 p a g e | 4 www.americanjournal.org its values: 1. partnership – their shared beliefs create strong bonds that form the basis of long-term relationships with their customers and employees. 2. desire – they have the drive and determination to make a greater impact on the lives of their clients and communities. 3. neighborly values and respects the communities they serve. the doors are always open. their customers are always greeted in a friendly manner and provided with friendly service. 4. peace of mind – their clients can rest assured that their financial interests are being managed in accordance with the highest ethical standards. 5. social contribution – by partnering with them, their customers make a positive contribution to the betterment of society, and the growth and development of their customers benefits the communities in which we operate. the board of directors consists of one chairman, one deputy chairman and 7 members. the global recovery is expected to slow significantly in 2022 due to the ongoing covid-19 pandemic, reduced policy support from governments and central banks, and supply disruptions. however, unlike in developed countries, output in emerging markets and emerging economies remains significantly below its pre-pandemic level. forecasts show that global growth will reach 4.1 percent in 2022 after a solid 5.5 percent increase in 2021, with observers expecting growth to reach 3.2 percent in 2023. the world faces downside risks, such as the rapid spread of the omicron variant due to the pandemic and fear of new virus variants, the possibility of deflating inflation expectations, and financial stress in the context of record debt levels. pandemic options have made it increasingly difficult for governments and central banks to choose which supportive policies to adopt, and have created limited space in the face of multidimensional challenges, high inflation, food insecurity, high unemployment and climate change. like other countries, the gcc countries were negatively affected by the consequences of the pandemic during 2021, with a particularly significant decrease in the transport and tourism sectors, but the opening of dubai expo 2020 and other tourism events held in various gcc countries and they are expected to witness a gradual recovery due to economic activities. most non-oil sectors have witnessed a gradual recovery and the region is likely to witness growth of up to 4.4% during 2022 on the back of higher oil prices and stable performance of exporting countries, growth and increase is expected to slow to 3.4% in 2023 due to the phasing out of financial support plans by gcc governments. standard & poor's revised its outlook for bahrain to stable from negative for the year, reflecting the government's fiscal reforms aimed at reducing public spending and improving non-oil revenues, including a 10 percent increase in value-added tax from 2022. on the other hand, the pandemic has had a negative impact on pakistan's economy, with a current account deficit of $7.1 billion compared to a surplus of $1.9 billion last year, and the state bank of pakistan recently announced that it would keep interest rates at 9.75%. "announced" says saleh salman al kawari, chairman of the board of directors of abg, in his report (2021). despite all the challenges faced in 2021, the group was able to achieve great strategic milestones as the group's consolidated assets exceeded bhd 1 billion, as well as record revenues of more than usd 12 million, which had never been achieved before. it also managed to launch a new mobile application that keeps pace with the latest innovations in modern technology. the group achieved an 8% increase in total assets in 2021, reaching $2,863 million, compared to $2,652 million in 2020. growth in the american journal of business management, economics and banking volume 2, july, 2022 p a g e | 5 www.americanjournal.org financial portfolio was 13 percent, reaching $1,206 million in 2021, compared to $1,068 million in 2020. the growth of customer deposits was 9% and reached 2,462 million dollars in 2021, this figure was 2,266 million dollars in 2020. in order to achieve strategic goals aimed at consolidating activities, increasing operational efficiency and cost rationalization, the group focused on creating a stable income base during 2021 that would contribute to the stability of the group's activities and increase its efficiency in the long term. the group also undertook a comprehensive review of cost rationalization without compromising the quality of services. due to the current conditions, the group continued to apply its prudent and conservative approach and continued to increase the provision for certain losses as well as expected credit losses. as a result, the group posted a record net profit of usd 12.6 million for the year ended 31 december 2021. the numbers show that most of the key indicators and the quality of operations have moved in a positive direction. islamic international rating agency has maintained al baraka islamic bank's international investment grade credit rating. bb (long-term)/a3 (short-term) and national scale rating bbb+ (long-term)/a3 (short-term). meanwhile, al baraka bank pakistan limited has a long-term/short-term national currency rating of a/a1 with a stable outlook assigned by the pakistan credit rating agency. vis credit rating company limited has affirmed its short-term/long-term credit rating at a+/a-1 with a stable outlook. such ratings reflect the group's strong capacity to meet its financial commitments and obligations and the existence of a strong compliance and governance environment. the philosophy of sustainability and social responsibility is an important pillar of the group's strategy, which is based on adopting and establishing commercial activities that can be transformed into sustainable resources that enable our communities to improve their quality of life. the group has partnered with government and private agencies to design and build affordable housing for low-income citizens. the group has also directed its resources to focus on projects of social importance, such as providing jobs and financing education, financing health services, and more. the group has supported various activities in the field of health as part of its social obligations and responsibilities. supported the "green bahrain campaign event" of the international banking day. it also contributed significantly to sponsoring the first asian junior paralympic games (for athletes with disabilities) held in the kingdom of bahrain. the group has made large donations to educational institutions, hospitals, orphanages and other charitable institutions. in addition, the group provided on-the-job training to university students and continued to support organizations in the field of islamic banking and finance research. the group has also been a partner in many islamic finance and banking events and conferences organized by the accounting and auditing organization for islamic financial institutions (aaoifi). during 2021, the group won eleven awards in various categories and sectors, including best ceo, best mobile app, best commercial bank in bahrain, best credit card, as well as service quality a number of related awards. over the past two decades, the world has managed to reduce the income gap, but the spread of the pandemic has caused this gap to increase, especially in developing countries and the deaths of many poor people in them. inflation and high prices, as well as disruptions in education (due to the pandemic), will further increase this gap. the group continues to invest heavily in financial technology solutions to maintain its competitive position and take advantage of opportunities in the industry. in addition, the group will continue to invest in its human capital, which it considers to be its highest american journal of business management, economics and banking volume 2, july, 2022 p a g e | 6 www.americanjournal.org priority in the coming period to increase its efficiency and improve its skills. the group is also working on developing a system of modern solutions that meet the needs of its customers in various industries. summary we believe that the need for islamic banks in uzbekistan is high and that such banks will be established in uzbekistan in the coming years, and we believe that islamic banks will start operating in our country. if such banks start operating in uzbekistan, then the main thing is that the principles of islamic banking will help to attract people's savings into the banking system, the mudarabah (investment) deposit of the islamic bank will be the distribution of profits between partners and will become a clear example of cooperation based on social justice in financial relations. we believe that it is this principle that motivates people's savings to put money in islamic banks, in any project, and to benefit from it. reference 1. islamic banks and their activity in nizomova mehrangiz jamoliddinza. obrazavaniya naukka i innovatsionnye idei v mire. chast 2 volume 3. 123-125. 2. https://azon.uz/content/views/anavi-va-ism-bachiligi-tautar. 3. www.albaraka.com al baraka banking group official site information. https://azon.uz/content/views/anavi-va-ism-bachiligi-tautar http://www.albaraka.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 1 www.americanjournal.org the reality of sovereign debt and the possibilities of addressing it through fiscal and monetary policy measures in the environment of the iraqi economy hayat jumaah mohammed wasit university, faculity of literature, sociology department , iraq – wasit – kut email: hjumaah@uowasit.edu.iq a b s t r a c t k e y w o r d s despite the availability of natural and other resources in the environment of the iraqi economy, the increase and exacerbation of sovereign debt owed by iraqi governments cause a major problem in the environment of the iraqi economy. however, any country that enjoys abundant resources with this huge amount of diversity between agricultural, industrial, natural, tourism, and advanced human resources cannot be expected to avoid incurring sovereign debt. it is shackled by the restrictions of external debt, particularly sovereign ones. hence, the research aims to show the importance and extent of the seriousness of sovereign debt and its repercussions on the economic sectors in any country. this is because sovereign debt significantly affects the growth of the productive sectors through the inability of those sectors to increase production. the reason for this is that it is well known to everyone. sovereign debt is the accumulation of debt that is owed to a nation's government by its citizens. because these debts weigh down the economy, it is impossible to increase production because all or the majority of the available revenues go to pay off those debts and the interest that accrues on them and has to be paid. then there is no money left over to pay for anything else. it is necessary that every production process be funded either internally or externally for the production process to continue indefinitely. providing evidence that the steps taken by decision-makers can adopt financial and monetary policies that would either prevent these debts or achieve the required balance in a way that does not impede the forward movement of development processes within the sector is an important step. increasing both the level of productivity in these areas and the amount of cash made available to support it is a priority. moreover, without burdening the economy with debts that serve no purpose in expanding these areas of the economy. in addition, a negative interaction effect begins to show up after the year 2003 through the use of two indicators with a theoretical basis. the first sovereign debt, fiscal policy, monetary policy. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 2 www.americanjournal.org one is exemplified by (inconsistency in time), particularly by deviating from its primary objective (maintaining stability in the general level of prices) at the expense of providing a cover for the budget deficit and public debt through the currency window, which generates a huge cash block in economic activity while not depleting foreign reserves in the environment of the iraqi economy. one of the most important recommendations is maintaining consistency between fiscal and monetary policies when faking inflation. the trend is heading in the wrong direction. introduction governments borrow when they need it to cover some of the deficit in the budget, either internally or externally, in their local or foreign currencies. the truth is that any loan, whether internal or external, entails a specific interest rate and additional costs on that debt. external, the interest in that debt has no value because that debt will incur additional costs for the governments of those countries. hence, it is more appropriate to identify the sovereign debt with the productive debt so that these debts can achieve profits in addition to paying their costs or the interest rates that have been borrowed accordingly. therefore, attention must be paid to the method of consumption of those debts, which are called sovereign debts, by governments and to take monetary and financial measures that would reduce the bad types of those debts and go to the good ones that would enhance the economy in any country by increasing production by offering loans and that it was sovereign to the productive sectors in order to increase production and achieve a surplus or profit that covers interest rates and develops the productive sectors. there are many tools that decision-makers can use to reduce notorious debts and use good debts to develop the economy of any country. research problem the increase and exacerbation of sovereign debt owed by iraqi governments, despite the availability of natural and other resources in the environment of the iraqi economy. research hypothesis: any country that enjoys abundant resources with such a huge amount of diversity between agricultural, industrial, natural, tourism and advanced human resources must be free of the restrictions of external debt, especially sovereign ones. research goal: the research aims to show the importance and extent of the danger of sovereign debt and its repercussions on the economic sectors in any country, as sovereign debt significantly affects the growth of the productive sectors through the inability of these sectors to increase production and the reason is, as is well known, that every production process must be funded either internally or externally in order to perpetuate the production process. since the economy is burdened with those debts, increasing production is impossible because all or most of the available revenues go to those debts, and the interests that accumulate on them must be paid. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 3 www.americanjournal.org and then demonstrate the ability of the measures taken by decision makers to pursue financial and monetary policies that would avoid these debts or the required balance that does not affect the progress of development processes in the productive sectors and provide the necessary funds for these sectors and increase them. sectors. research importance : the experiences of african and latin american countries in the eighties confirm the bad conditions of high inflation and increased poverty rates due to the rise and increase in sovereign debt in that decade. it also took a long time to get out of that crisis and the economic repercussions resulting from the accumulation of sovereign debt in those countries. emphasis must be placed on managing sovereign debt in a way that limits its volume and serves the economic development process in any country. the important study also emphasizes the appropriate tools used by fiscal and monetary policies to reduce these debts in a way that allows the continuation of economic development in the country. chapter one : the composition and state of affairs of iraq's sovereign debt the phrase "sovereign debts" has gained a great deal of notoriety as of late, particularly due to the predicament in which greece finds itself, in which it may fail to meet its commitments regarding its sovereign debt. we started to read the term virtually every day in newspapers, hear it on radio stations, and watch it on television stations extensively. it is simply the most famous economic phrase these days! the question, therefore, becomes, what exactly are sovereign debts, why do such debts originate, and how can the issue of sovereign debt be solved? 1 firstly: an explanation of the idea of sovereign debt and its historical roots. there are always two alternatives available to the national governments of the world's countries whenever they issue bonds. the first option is to issue the bonds in the country's native currency; investors in the domestic market are often targeted for these bonds. in this scenario, the debt incurred due to the issuance process is "government debt." alternatively, the government may issue bonds in a currency other than the nation's native currency, typically in an international currency such as the dollar or the euro. in either case, the debt is called "government debt." the term "sovereign debt" refers to the debt incurred due to this process. in light of this, the distinction between government debt and sovereign debt can be seen in the issuing currency upon which the government borrows. 2 generally, when the government borrows money for a certain amount of time, it is assumed that it has a temporal perception of the structure of its revenue flows, regardless of whether those flows are denominated in local or foreign currency. based on this perception, the government can judge whether or not it will be able to fulfil its obligations to its creditors on the specified repayment dates, and the government faces a sovereign debt crisis if it misestimates the structure of future foreign currency cash flows, for instance, if it believes that. 3 a sovereign debt crisis occurs when a government cannot repay its debts denominated in foreign currencies due to the government's inability to locate the currencies necessary to meet its commitments in accordance with the sovereign debt. it is important to note that most of the world's governments are eager to avoid defaulting on the payment of their obligations toward their sovereign debts to protect their credit rating in the borrowing market from deterioration. this is because the suspension of american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 4 www.americanjournal.org payment by the government or the appearance of signs indicating that it will do so results in the loss of investors. trust in the government of this country on international markets, as well as a refusal to take part in any future auctions for the purchase of the country's bonds; moreover, the reaction of investors is not limited to those who currently hold state bonds; rather, the financial panic has spread to the rest of the foreign investors in this country who do not currently hold these bonds. for instance, argentina's sovereign debt crisis in 2001 caused foreign investors (who did not hold the state's sovereign debt securities) to withdraw their investments from argentina. this resulted in massive inflows of foreign exchange outside the country and then an acute shortage of foreign exchange in the country, which led to the emergence of a crisis for the argentine currency. 4 to what end, then, does the government of this country issue bonds denominated in foreign currencies? the answer is that this is because of several different factors, the most important of which is either the high rate of inflation at home, which makes the process of borrowing in the local currency a costly issue for the state given the high nominal interest rates, or the need to finance development projects in which the foreign component increases (such as machinery and equipment that will be imported from abroad). on bonds issued in the local currency, while the process of borrowing in foreign currencies is relatively cheaper, or when the country faces instability in the exchange rate of its currency against foreign currencies, it tends, in this case, to prefer issuing its bonds in foreign currencies that are relatively stable in value. this is because local currency bonds tend to carry a higher interest rate than bonds denominated in foreign currencies. on the other hand, the fact that the state has chosen to keep a debt denominated in foreign currencies opens the possibility that it will stop paying these payments. failure on the part of the state to fulfil its legal obligations by its external debt contracts, for example, its failure to pay debt instalments on the due dates, is what is meant by "stopping payment." failure on the part of the state means that it cannot procure or purchase the foreign currencies necessary to meet the obligations due on it promptly, which can, in extreme cases, lead to the state being declared bankrupt. 5 secondly:the several categories of sovereign debt 1. unsustainable debt: debt is the repayment that prohibits the government from fulfilling its commitments regarding fundamental rights (right to education, health, etc.) a nation may depend on international law and three legal ideas to declare that its debt is unsustainable and to stop the payment of that debt unilaterally. these legal concepts include a state of necessity, a fundamental change in circumstances, and force majeure. it is possible to read the following in the charter of the united nations, which is the central document of international law and the document that states all parties must respect: "in the event of a conflict between the obligations of the members of the united nations under this charter and their obligations under any other international agreement, the obligations imposed by this charter shall have priority." 6 according to a statement made by the united nations international law commission in 1980: "it is unreasonable to anticipate a state to shut down its educational institutions, including its schools and universities as well as its courts, and to discontinue providing public services in such a way as to throw its society into complete disarray in order to raise funds necessary to pay off its domestic or external debts. as with any individual, there are bounds to the expectations placed on a nation." • the state of need is a legal concept recognized by international courts and tribunals. it is specified in article 25 of the draft articles on state responsibility drafted by the united nations international american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 5 www.americanjournal.org law commission. in this line, it is stated that the state does not have to continue making payments on its debts because the objective situation (which the state is not responsible for) poses a significant risk to the population and prevents it from catering to the population's most pressing need. additionally, legal precedents are discussed regarding this idea. • a significant shift in the existing conditions: the legal doctrine that governs the enforcement of international treaties and contracts acknowledges the possibility that the contract cannot be carried out if there has been a significant shift in the underlying conditions. therefore, the debt payment may be put on hold if a fundamental shift in the debtor's circumstances is unavoidable. this concept is extremely relevant in light of the current circumstances of the covid crisis, which include a severe and rapidly spreading pandemic, a significant slowdown in economic activity, the flight of capital, and an abrupt reduction in the price of raw materials. • the concept of "force majeure" is recognized not only in the vienna convention of 1969 on the law of treaties but also in many national laws, particularly those pertaining to the area of contract law. in addition, it is a component of the law that is recognized globally. "an unexpected incident without the respondent's control, rendering him unable to act lawfully and honour his international duties," is how the united nations international law commission defines it. 2. unfavorable debts, such as those incurred by dictatorships or debts that are employed in a manner that is counter to the interests of the public, when the creditor is aware of or is in a position to be aware of this fact. 7 first example: debts accumulated by dictatorships or former colonies: it is morally reprehensible for dictatorships and other forms of authoritarian government to run up massive debts, particularly when doing so results in gross breaches of the civil, political, economic, social, and cultural rights of the populace. the backpack is credited with having written the following: "if a despotic power contracts a religion not based on the necessities and interests of the state but to cement its tyranny, to oppress the populace that challenges it, then the entire population of the state despises religion." this religion does not tie the nation; rather, it is a system religion and represents a personal obligation to the power that contracted it; as a result, it will disappear along with this power when it is no longer in existence. when examining the nature of the debt, it is not necessary to consider where the money from the loans will end up in the case of dictatorships. providing a criminal dictatorship with financial assistance, even if that support is used to fund hospitals or schools, is the same as contributing to the regime's consolidation and perpetuation of its power. some good investments (roads, hospitals...) could be utilized for less-than-desirable goals, like assisting the war effort. because of this, the concept of the interchangeability of money indicates that a government that legally borrows money for purposes that benefit the population can utilize that money for other purposes that are counter to what is in the population's best interest as a whole. the second scenario involves a debt incurred contrary to the best interests of the general populace and with the knowledge of the creditors: sack does not view the fact that the debtor state is an authoritarian government as an important requirement for the existence of the terrible religion doctrine. this contrasts with what academics and social movements frequently assert about the hateful religious doctrine. to say that a certain religion is abhorrent. according to sacksack, in order for a religion to be regarded as repugnant, it must fulfil both of the following criteria: (1) that it is contracted to be opposed to the interests of the nation, the interests of the people, or the interests of the state; (2) that the creditors are unable to prove that they were unaware that the obligation american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 6 www.americanjournal.org was made against the interests of the nation. therefore, it does not make a difference what contracting regime or government is in place. what counts is how the money from this loan is utilized. if the second criterion is met, religion can also be considered hostile when it is used to borrow democratic government power against the people's interests. 3. illegitimate debts are debts that do not follow the constitution or the laws that are now in effect in topics about contracts. a contract between two parties is what constitutes debt. nevertheless, for this contract to be effective, it must conform to the legal criteria and processes outlined in national and international law. in that case, it might be considered null and void. many factors can result in religion being banned. there will be some mention of them here. 8 • a disregard for the conventions that govern international relations to give just one illustration, european nations who breached their unique legal commitments by lending money to greece in 2010, 2012, and 2015, respectively, are exemplified here. the stipulated conditions in these loan contracts contravene fundamental legal, societal, and financial rights. however, member states of the eurozone have joined the international covenant on economic, social, and cultural rights. as a result, they are expected to comply with the duties outlined within this covenant, even when they are not on their national territory. in addition, the treaty on the labor of the european union includes the following provision in article 9: "in determining and implementing its policies and procedures, the union shall take into consideration the provision of a high level of employment, ensuring adequate social protection, combating social exclusion, as well as a high level of education and training and protecting the health of the human." the conditions embedded in the contracts for these loans involve the elimination of a large number of jobs and severe cuts to the social security system in greece; as a result, they violate this article 9 in a manner that is both direct and direct. • disregard for or violation of the constitution a person or institution's agreement is sometimes required for the discharge of a debt to be recognized as legitimate. in many nations, the legislative body precedes the courts and must be consulted before entering any financial obligations. example: even though this was a requirement imposed by the constitution, the greek government proceeded with the issuing of loans to be settled with the troika in 2010 without first consulting or gaining the permission of parliament. any international agreement needs to have approval from the greek parliament according to both article 28 and article 36 of the greek constitution. • a disregard for the rules of the law according to one provision of french legislation, "local authorities can act lawfully only on the grounds of public interest of a local character." [citation needed] therefore, may any loans be classified as "hazardous"? according to the french municipal authorities, based conjecture like that is against the law. • fraud or fraud fraudulent manoeuvres (dishonesty, lies, serious omissions, etc.) the ability, either natural or legal, to sign the contract. 4. illegitimate debts are debts that do not benefit the general public but rather a select group of individuals who enjoy special privileges. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 7 www.americanjournal.org the concept of illegitimate debt needs to be defined clearly and specifically by international law. however, several lawyers specializing in international law have devised criteria to describe the illegitimacy of public debt. these criteria can be found in the following sentence: the need to repay the loan is not absolute and only applies to "debts that are taken out in the interest of the general population," according to the legal representative david rosie. in a nutshell, one could say that an illegitimate religion is established when there is a lack of regard for the public interest and when the private interests of a privileged minority are prioritized. 9 chapter two: policies in dealing with sovereign debt through fiscal and monetary policies firstly: the financial policy (fiscal policy) : the ancient greeks believed that the art of managing state affairs, the science of state administration, or the principles and laws of community management were all different aspects of the same overarching idea known as politics. many financial experts believe that the term "fiscal policy" was derived from the french word "fics," which translates to "treasury." (10) the term "fiscal policy" is frequently used interchangeably with "government policy." this is because its tools, which are embodied in "taxes and government spending," have a significant influence on "macroeconomic variables" such as "national income, work, production, prices, and investment" (11). the fiscal policy is based on a fundamental purpose centred on determining the primary sources of public revenues for the government and the methods used to collect them. their comparative significance when taking into account how these revenues are allocated toward the expenditures of the government in order to accomplish the objectives that the government has established in advance, which may be for social or economic reasons... etc. (12). according to (tucker), fiscal policy is the use of each government spending and taxes to influence aggregate demand (ad) and use (e) as well as the general level of prices (p) (13). this definition is supported by (abata), who defined it as the use of government spending, taxes, and borrowing to influence macroeconomic variables (aggregate demand, output, use) through the state's management of fiscal policy efficiently and then influencing income and purchasing power to reach ecological sustainability goals (14). we can derive a general concept of fiscal policy by saying that it is: "the method adopted by the government through harmonizing the tools and objectives of policies (expenditure, revenue, and the general budget) in charting the course of economic activity to achieve goals (economic, social, and political) for the state and society." even though there is no consensus on a unified concept in financial and economic literature, we can agree on the following definition of fiscal policy. 15 secondly:financial policy. according to the federal reserve board, which serves as the central bank of the united states, monetary policy is defined as the procedures and measures utilized by the monetary authority through its direct and indirect means to influence the monetary mass and the cost of money and credit, and then its reflection on the future developments of economic activity in general by drawing a general goal in neutralizing the rate of inflation at a rate of (2%). 16 during the nineteenth century, the concept of monetary policy was introduced into economics and began to be published in economics. during the twentieth century, this concept exploded in popularity due to its association with managing crises caused by reoccurring economic cycles in capitalist american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 8 www.americanjournal.org economies. after this, monetary policy emerged as a component of the general economic policy that directs general economic activity through particular means and tools to accomplish particular goals and objectives. (17) when discussing the idea of monetary policy, it is necessary to discuss its narrow and broad concepts. the narrow concept focuses on "controlling the money supply through managing expansion and contraction in the volume of money supply and mass." in contrast, the broad concept focuses on "managing expansion and contraction in the volume of money supply and mass." as for the more general idea, it focuses on "the means taken by each of the central bank and the public treasury in influencing cash and credit through the function of the central bank in issuing currency and government monitoring of commercial banks that create credit, as well as managing public debt, and the effect of harmonizing between these variables on financial and banking activity in the economy." (18) the function of the central bank is to issue currency, and the government monitors commercial banks that create credit. in addition, the processes that are carried out by the monetary authority in order to ensure the optimal management of the volume of monetary mass in the economy and transfer the impact of monetary policy through its various tools to the economic sectors in order to address temporary imbalances and maintain stability in the general level of prices while stimulating economic growth as a general objective are known as monetary policy procedures. thirdly: the separation of monetary and fiscal policies while maintaining cooperation between them it is not a secret that the strength of the independence of the central bank and the solidity of its operations gain a high degree of permanence commensurate with the degree of coordination and consultation with other authorities, particularly the financial authority, to achieve the goals of macro stability and strengthen economic development activities that monetary policy and fiscal policy aspire to some extent. this is because coordination and consultation with other authorities help to achieve the goals of macro stability and strengthen economic development activities that monetary policy and fiscal policy aspire to some extent. the robustness of the relationship between the central bank of iraq and the government is predicated on the robustness of the central bank's relationship with the ministry of finance. this relationship aspires to draw a stable framework for the country's macro-economy through consultation with the fiscal policy regarding the development of the effects of two main axes of participation: monetary policy and fiscal policy. 19 1. the consistency of the exchange rate for the iraqi dinar or the value of the dinar about other currencies. 2. the stability of the internal value of the currency and its soundness by controlling inflation and declining annual price growth rates, as well as the currency's reflection on the evaluation of administrative prices and price support for commodity items that fall within the scope of the objectives of the public finances and its annual budget . we should also point out that the participants mentioned above, which are representative of the significance of the interdependence of the relationship between public finance and the central bank, have been embodied by the right of the successes of the current monetary policy. this policy achieved long-term stability in the value of the iraqi dinar after its value gradually increased by approximately 25% over the past three years. additionally, it was able to bring annual inflation down to 6% in 2011 after it had reached 34% in the previous in addition to constructing a full foreign currency reserve with a value of nearly sixty billion dollars, which is the highest in the history of iraq's monetary system and is a support for the value and safety of the currency in addition to protecting the balance of payments american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 9 www.americanjournal.org from external shocks, iraq has been working to build up its foreign currency reserve in recent years. on this basis, the economic program of the current government has achieved remarkable success in the framework of what the monetary policy has done in achieving its objectives, as stipulated in the law governing the central bank of iraq. this success has been achieved within the context of what the monetary policy has done in achieving its objectives. note that the stability of the commodity market and the development of supply are also considered to be the result of positive results of the stability of the prevailing economic system. the stability of the general economic system was supported by monetary policy through the availability of flexibility in external transfers, stimulation of side trade exchange, and alleviating the burdens on the financial and trade policies in the main and important in the stability of the national market and the development of supply. 20 fourthly: the ability of governments to deal with the issue of national debt using the financial and monetary tools available to them long-term budget constraints are defined as not exceeding the present value of government spending and outstanding debt, as well as the net present value of receipts at the same discount rate. this applies to the entire time horizon, from when the budget process began until infinity. to express this in another way, the initial debt is greater than the current value of the budget surplus over the period in question. according to this theory, the amount of debt that could potentially be taken on is constrained by the predicted future revenues, limiting current spending. based on this mathematical connection, sustainability can be defined as the greatest amount of government debt stock permitted within the criteria of balance over a period longer than the yearly budgets. the only thing included in the assessment of the debt's sustainability in terms of its ratio to gdp is a comparison with averages from previous or worldwide levels. in addition, as we can see, the most appropriate method is to calculate the amount of recyclable government debt without increasing the central bank's assets from government debt securities, also known as monetization. this method can be understood in terms of observing the size the private sector wants to own within its investment portfolio. the first method, which achieves long-run equilibrium through an approach based on net present value, is the most cautious and necessitates government debt repayment. regarding the second point, which is the size of the debt compared to the gdp, and the third point, which is the amount of recyclable material within the parameters of private sector preferences, they do not assume that payback will occur. 21 the state will not be able to fulfil its obligations, which include the cumulative probability of default, along with other approaches that are consistent with the state's behaviour toward creditors in the recent past and the required interest rates on its new debt. this is what is meant by the term "sovereign debt risks." creditors try to protect their debts by participating in the credit default swap market, which involves exchanging the risk for regular payments based on a percentage of the total debt amount and a spread that the buyer pays. the buyer is the creditor who risks failing to meet his contractual obligations to the person selling the security. furthermore, the viability of public debt necessitates ruling out the possibility of a sovereign state going bankrupt. the investigation of public debt's sources is one of the ways to gain an understanding of its viability, and it has the closest connection to financial markets and the procedure of refinancing in order to recycle existing debts. in every scenario, the components of the available financial space are there, the most essential of which is the budget deficit, american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 10 www.americanjournal.org the direction in which it is moving, and the chances for achieving financial sobriety to reach the primary surplus and plan for unexpected expenses. in addition, the economy's expansion, inflation, and interest rates. in addition to these factors, the debt's weight is considered. the debt ratio to average budget revenues and gdp determines this. when the interest rate rises or the margin of risk is added to the reference interest rate, which in the case of europe is the return on german government debt, the risk of failure increases. this is because the pressure of debt servicing expenditures on the budget increases. in addition, the risk of failure increases when the interest rate rises. when the deficit and the debt balance continue to grow, the risk (probability) of a sovereign credit collapse also grows. this causes investors to require an additional premium, which creates a negative feedback loop between the interest rate and the amount of debt. it will become evident that the cost of insuring the loan is connected to this premium somehow. before 2008, the price of the european debt guarantee for the countries in crisis was low compared to what is indicated by the public finance variables and other basic variables, which indicates a low appreciation of sovereign risks. this was the case because of the variables that measure public finance and other fundamental aspects of the economy. after some time had passed, the intensity rose. also, the premium that countries have to pay during a crisis, in comparison to the return on the reference bond, and it stands to reason that when the gross domestic product grows at a faster rate than the debt, this helps to reduce the burden relatively and is reflected in the interest rate or the risk premium by lowering it. a positive balance of payments works in the same direction, but when the current account surplus is combined with net capital outflows, the debtor country does not benefit from the surplus. this is because a positive balance of payments position works in the same direction as a positive current account surplus. 22 fifthly: the function of the world bank and the international monetary fund in the structural adjustment program for developing countries a. the international monetary fund (imf) is an agency that is engaged in ensuring the stability of exchange rates and providing liberalization of the freedom to convert currencies. its primary focus is on industrialized countries. when mexico announced in august 1982 that it would stop making payments, the international monetary fund was asked to play a leading role in bringing together the concerned parties and convincing each party to contribute to the treatment of the crisis to prevent a collapse of the international banking system. this was done to avoid a collapse of the international banking system. by rescheduling debts, providing loans to the debtor state, and obligating it to several policies collectively referred to as conditionality. the following concerns are at the centre of the fund's conditional status: 23 1. the distribution of the overall deficit in the budget. 2. getting back to the truth about the cost of things (by liberalizing internal prices, wages, and exchange rates). 3. the removal of artificially inflated prices. 4. the liberalization of interest rates for credit and debit cards. b. the function of the international monetary fund: as a result of the explosion of the debt crisis, the bank has tended to pay attention to the structural adjustment program, which is supported by the stabilization program provided by the fund, and this is what led the two bodies to american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 11 www.americanjournal.org cooperation. the world bank has specialized in development issues, while the attention of the monetary fund has been focused on issues of stability and monetary. the commitment of the concerned countries to a wide variety of policies aimed at rationalizing the use of available resources, expanding production capacity, liberalizing foreign trade, resorting to market rules and generalizing them, and restructuring the public sector is an example of the conditionality imposed by the world bank. since the middle of the 1980s of the 20th century, it has become obligatory for the calling countries, in order to benefit from the bank's resources for structural correction, to conclude an agreement with the fmi under which they undertake to implement an economic program, or at the very least the obligation to implement the conditionality set by the other institution. this has been the case since the beginning of the current century. in addition, cross-conditionality was extended to international private and public financial institutions that grant loans. this became a requirement to obtain a certificate of (good behaviour) from the fund, as was the case with the rescheduling measures implemented in the paris club and the london club. chapter three:the management of sovereign debt in the iraqi economy through the use of monetary and fiscal policy tools firstly: sovereign debt before 2010 iraq is one of the major economies in the world, but it is one of the economies that suffers the most from global financial burdens and obligations. the most notable of these is the accumulation of external public debt for more than two decades as a result of the conclusion of international loan contracts with a group of countries that took it upon themselves to support iraq during the years of war and the conditions of the economic blockade. iraq is one of the major economies in the world, but it is also one of the economies that suffer from the issue of foreign indebtedness. iraq was a secret among the secrets of the state and even to the official institutions of significance, which is the central bank of iraq, where the central bank of iraq estimated the iraqi foreign indebtedness to be 65 billion dollars. this was a secret among the secrets of the state. however, according to estimates provided by the world bank, the international monetary fund, and the bank for international settlements, the total amount of external debt that iraq is responsible for paying is 127 billion dollars. however, after 2003, the creditor nations convened in an international meeting known as the paris club to demand payment of these obligations. as a result of the resolutions passed by the united nations security council, the countries of the arab gulf escalated their demands to pay compensation connected to prior conflicts. for this reason, iraq had to deal with external indebtedness within the framework of the structural adjustment program with the international monetary fund. by this agreement, eighty per cent of iraq's external debt was reduced, divided into thirty per cent when the agreement was reached with the international monetary fund within the program (emergency aid after conflicts). on september 29, 2004, iraq ratified the agreement. the support agreement that was signed on (december 23 2005) provided for the cancellation of thirty per cent (30%) of iraq's debts under the condition that twenty per cent (20%) of those debts would be cancelled upon iraq's fulfilment of the agreement's terms if the international monetary fund announced on one december 2008 that iraq had become eligible to obtain the final stage of debt reduction, which amounts to twenty per cent (20%), which would mean that iraq obtained a reduction in its external indebtedness of eighty per cent american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 12 www.americanjournal.org according to table (1), which depicts the progression of iraq's debt throughout the period ((20042007), it can be seen that the debts owed to the paris club reduced from (51.645) billion dollars in 2004 to (16.477) billion dollars in 2007. this reduction occurred between the years 2004 and 2007. countries not members of the paris club have made it clear that they are eager to assist iraq. in order to reduce its foreign debts and dues to iraq; this is the reason why the indebtedness of countries outside the paris club decreased from (9.674) billion dollars in 2004 to (1.590) billion dollars in 2007; on the other hand, commercial debts decreased from (18.443) billion dollars in 2004 to (3.285) billion dollars in 2007. the arab gulf council still owes around (28.239) billion dollars in debt, which is the same amount as before. similarly, the obligations owed by the arab monetary fund remained approximately the same at (553) million dollars. also, the obligations of the investment guarantee corporation have remained the same amount, approximately one hundred twenty million dollars. the information presented in the table makes it abundantly evident that the amount of money iraq owed to other countries in the world in 2004 was 108.657 billion dollars. it is noted that the support agreement achieved its most important basic objective, which is to reduce iraq's foreign indebtedness, as part of the structural adjustment program in iraq after 2003. as a result of applying the terms of the support agreement, iraq's debts were reduced by approximately (80%), as iraq's indebtedness decreased in 2007 to (50,201) billion dollars. 24 table (1) the evolution of iraq's external indebtedness during the period (2004-2008), billion dollars 2007 2006 2005 2004 year countries 16.477 16.146 28.746 51.645 paris club countries 1.590 1.552 3.741 9.674 countries outside the paris club 3.285 14.542 18.443 18.443 commercial debt 28.239 28.239 28.239 28.239 the debts of the arab gulf council 0.120 0.120 0.120 0.553 arab monetary fund debt 0.553 0.553 0.553 0.120 investment guarantee corporation debt 50.201 61.134 78.825 108.657 the total source: ministry of finance, economic department in table (2), which illustrates the progression of iraq's external debt, it can be seen that the debts owed by countries that are members of the paris club decreased from 62.1 billion dollars in 2004 to 30.1) billion dollars in 2008, while the debts owed by countries that are not members of the paris club decreased from 36.2 billion dollars in 2004 to 17.7 billion dollars in 2008. the total amount of money owed to commercial creditors fell from 20.7 billion dollars in 2004 to 3.2 billion dollars in 2008, while the total amount owed to multilateral creditors rose from 0.8 billion dollars in 2004 to 2.5 billion dollars in 2008. concerning the proportion of liabilities owed to third parties about, the gross domestic product went from being (465.9%) in 2004 to being (75.8%) in 2008, and the interest on the external debt was between (0.2%) and (0.7%) throughout this period. according to the data, remarkable and american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 13 www.americanjournal.org clear progress has been made in the issue of reducing the foreign debt owed by iraq. after being estimated before 2004 at (120) billion dollars, it had decreased to approximately (50) billion dollars in 2008, as the external debt was a significant burden on the general budget in iraq. reducing the foreign debt owed by iraq has been a topic of discussion for quite some time. table (2) the evolution of external indebtedness in iraq during the period (2004-2008), billion dollars 2008 2007 2006 2005 2004 after discount 2004 before discount year countries 17.7 17.1 16.5 15.9 23.6 36.2 paris club countries 30.1 28.8 27.4 26.1 43.5 62.1 7 countries outside the paris club 3.2 3.2 3.1 19.5 20.2 20.7 commercial debt 2.5 1.5 1.0 1.7 1.8 0.8 multilateral debt %75.8 %82.9 %102.2 %182.8 %345.5 %465.9 share of gdp 0.7 0.3 1.4 0.2 0.2 -------total debt service first and second reviews under the stand-by arrangement .p31sours : international monetary fund secondly: sovereign debt after 2010: this period was marked by large, new sovereign debts as a consequence of the increase in government spending carried out by successive governments and the inability of the total revenues to meet the rising public expenditures. as a result, these governments were compelled to turn to internal and external debts, which resulted in the growth and deterioration of those debts in exchange for complying with the authorities' directives. the expansion of government spending characterized this period carried out by successive governments. for iraq to obtain those loans, which were directed towards the operating budget, the lender, which included the international monetary fund, imposed unfair conditions on iraq. this was done without considering what would happen after accumulating those debts and their interests, as they must be paid at a specific time with the accumulated interests. it is preferable to direct these debts toward the investment and production sectors to produce profits and pay off those debts using this method, which is the method that all countries who borrow in this manner, which is sovereign loans, use. a security shock hit iraq in the middle of 2014, which disrupted economic and investment activity in the country. this disruption occurred simultaneously with a collapse in oil prices, as the price of opec basket oil in late 2014 reached $26.5 dollars per barrel (it decreased by more than 65%). the monthly average for 2012 was (49.49 dollars), and it fell below 100 dollars for the first time since august 2014, when it was more than that amount. this happened in january 2016. 25 therefore, these two shocks constitute a new challenge and obstacle in front of the fiscal and monetary policies in light of the inconsistency in the objectives and tools after 2003, as the effect of negative interaction appears through two indicators stemming from a theoretical origin. this inconsistency came about as a result of the fact that after 2003, there needed to be more consistency in the objectives and tools. the general level of prices) at the expense of providing a cover for the budget american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 14 www.americanjournal.org deficit and public debt through the currency window), which generates a huge monetary block in economic activity and the depletion of foreign reserves, and with this effect, another effect represented by (financial hegemony) interacts in a reverse direction with the stability policy adopted by the policy monetary in iraq after 2003 and within the independence of the central bank by law (56) o. the general level of prices) at the expense of this effect is embodied in the negative interaction through the burden of the enormous budget deficit and internal public debt, which embodies a negative pressure factor on monetary policy to finance that deficit, which generates inflationary pressures and acceleration in the monetary cost, causing inflationary effects, which means that the fiscal policy after 2003 abandoned the prominent role assigned to it in building a base to determine the size of the fiscal deficit. this effect is also embodied in the negative interaction through the burden of the enormous budget deficit, and internal the budget went from having a balance of (4,636,200) trillion dinars in 2003 to having a balance of (24,194,920) trillion dinars in 2016, representing an increase of an estimated (421.87%). this represents an additional burden on the monetary authorities, particularly in the years following 2010, when the deficit will be financed through loans from outside the country. the same is true for the internal debt in both of its components (debts owed by the ministry of finance due by the central bank and treasury bonds and transfers with commercial banks), as the internal public debt increased from (5,543,684) billion dinars in 2003 to reach (46,580,280) billion dinars in 2015, representing an increase of (740.24).%. furthermore, the preliminary estimates suggest that the internal public debt for the year 2016 may reach more than (48) trillion . 26 it is also possible to say that the government's financial hegemony was reflected in the credibility of monetary policy, particularly (the currency window) during this stage as the (dynamic stabilizer) of monetary policy, as we note the following: the monetary authority strives to control the general level of prices, and that we note the following: that the government's financial hegemony was reflected in the credibility of the monetary policy. this is made clear by the fact that there is a direct connection between the rise in government spending and the increase in the central bank's sales of dollars through the (currency window). these sales increased from six billion dollars in 2004 to fifty-three and a half billion dollars in 2013, but then they dropped to forty-four and a half billion dollars in 2015, and this decline is what led to the rise in government spending. this procedure indicates that the financial and monetary authorities must be more seriously committed to maintaining a stable level of prices or securing a stable level for the exchange rate of the dinar a. it refers to determining sales (currency window) according to article (50) of the federal budget law of 2015, which set the ceiling of the central bank's sales of dollars in (currency auction) at (75) million dollars per day for the private sector. 27 these numbers indicate a chronic deficit in the public budget and that the public budget does not represent real economic activity. this is the case if we consider that the burdens of unilateral economic activity burden the financial policy, and the outlet for it is embodied in the public debt (both internal and external), which calls for the adoption of financing means. in this case, the public budget does not represent real economic activity. its primary support comes from productive sectors, particularly those in which investment is the most important factor. they are factors that contribute to the public budget rather than the other way around. in addition, there is a significant barrier embodied in the haziness of the vision involved in the management of public debt in terms of activity, whether in the issuance market or the secondary market, because there needs to be more liquidity in the secondary market. this is a result of the need for an efficient secondary market. therefore, the issuance and borrowing american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 15 www.americanjournal.org markets are where the majority of public debt management is centred. in this situation, there is a necessity for the authorities in charge of finance and money to work together efficiently. the most responsibility rests on the shoulders of the monetary authority, which must make several agreements for monetary programming, target monetary aggregates, and target both the level of prices and inflation. 28 conclusions 1. sovereign debts in general, when the government borrows for a specific period, it is assumed that it has a temporal perception of the structure of its revenue flows, whether in local or foreign currencies, and based on this perception, the government can judge its ability to fulfil its obligations to its creditors on the specified dates for repayment or no, and the government faces a sovereign debt crisis if it misjudges the structure of future foreign exchange cash flows. 2. financial sustainability, i.e. the maximum amount of government debt stock allowed within the conditions of balance in a period that exceeds the annual budgets. as for the sustainability assessment in terms of the debt ratio to gdp, only goes beyond comparison with averages at the international level or with previous levels. moreover, the most appropriate, as we see, is to calculate the amount of recyclable government debt without increasing the central bank's assets from government debt securities, or monetization, in the sense of observing the size that the private sector wants to own within its investment portfolio. 3. the risk of sovereign debt is the state's non-fulfilment of its obligations, including the cumulative probability of failure, along with other approaches consistent with the state's behaviour towards creditors in the recent past and the required interest rates on its new debts. creditors seek to protect their debts in the credit default swap market, i.e. exchanging the risk for regular payments set at a percentage of the debt amount to be paid by the buyer, who is the creditor at risk of not meeting his contractual dues to the seller of the security. 4. the evolution of indebtedness in iraq for the period ((2004-2007) it is noted that the debts of the paris club decreased from (51.645) billion dollars in 2004 to (16.477) billion dollars in 2007. as for the countries outside the paris club, they have expressed their willingness to help iraq in order to reduce its external debt and their dues to iraq; therefore, the indebtedness of countries outside the paris club decreased from (9.674) billion dollars in 2004 to (1.590) billion dollars in 2007, while commercial debts decreased from (18.443) billion dollars in 2004 to (3.285) billion dollars in 2007. 5. these shocks constitute a new challenge and obstacle in front of the fiscal and monetary policies in light of the inconsistency in the objectives and tools after 2003, as the negative interaction effect appears through two indicators stemming from a theoretical origin. the first is embodied in (time inconsistency), especially by moving away from its main goal (stability). in the general level of prices) at the expense of providing a cover for the budget deficit and public debt through the currency window, which generates a huge cash block in economic activity and not depleting foreign reserves in the iraqi economic environment. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 16 www.americanjournal.org recommendations 1. the obligation to repay the debt is not absolute and applies only to "debts taken in the interest of the general community. therefore the sovereign debt must be paid in full. 2. relying on internal debt as much as possible to bridge the deficit in the annual budgets without resorting to internal debt resulting from increased government spending. 3. directing debts towards the productive sectors permanently allow these sectors to pay the principal debt with interest accrued from that place, especially the foreign sovereign debts. 4. consistency between fiscal and monetary policies when facing any potential deficit to reduce debts to the lowest possible level for the sake of general balance in the economic environment and to preserve financial indicators from a downward trend. 5. iraqi governments should take into account and reduce sovereign debts as much as possible, and head towards internal debts and direct them towards productive and investment sectors in order to avoid the problem of inability to pay the accumulated debts in the environment of the iraqi economy, especially the debts of the international monetary fund, which for a long time shackled iraq with restrictions that would fight development. economy and not relying on ready-made recipes from the international monetary fund because it is always in the interest of the major countries looking for their interests inside iraq. sources 1. ahmed ibrahim al-sakka, what is sovereign debt, article, 2010, p.1. 2. ahmed ibrahim al-sakka, the same previous source 3. ahmed ibrahim al-sakka, the same previous source 4. ahmed ibrahim al-sakka, the same previous source 5. ahmed ibrahim al-sakka, the same previous source 6. eric toussaint, olivier bonfond, mats lucia bayer, what are the four types of public debt that cannot be repaid? article, 2021. 7. alexandre nahum sack, “the effects of state transformations on its public debt and other financial liabilities,” recueil sirey, paris, 1927. 8. david rosie, “public international law,” 17th ed., daluz, 2004, p. 93. 9. “greece: post-assessment of exceptional access under the 2010 standby arrangement,” country report no. 13/156, imf, 2013. 10. philip.a.klein, the management of market, oriented economics a comparative, perspective widower the publishing company belmont, california. 1973, p.176. 11. kimberly amadeo, discretionary fiscal policy, balance us economy, updated the september 8, 2016, pp.3. 12. smriti chand, fiscal policy; meaning, objectives and other information, article on economies, your articles library, 10, 2016, p.2. 13. lryinb.tucker, macroeconomics for today's world, thomson southwest, canada, 2008, p,271. 14. abata matthew adeolu, fiscal-monetary policy and economic growth in nigeria, international journal of academic research in economics and management sciences, 2010, p.79. 15. jaafar baqir alloush and others, financial and monetary policies in the iraqi economy, the national library, edition 1, 2019. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 17 www.americanjournal.org 16. fexeral, reserve, statement on longer running goods and monterey policy strategy, 24, january, 2012.p.3. 17. p.einizq.a text book on monetary policy, third edition, london, magm, land st, margin press, 1972 p: 32. 18. peter. s. roe, money and capital market, 6ed (usa, irwin mcgraw-hill, 1997, pp: 589-590). 19. mazhar, muhammed salih qassem, monetary and fiscal policy and controlling the variables of inflation and exchange rates, hammurabi center for research and strategic studies, baghdad, 2011, pp. 4-5. 20. mazhar muhammad salih, the same previous source 21. ahmed brehi al-ali, monetary economy: facts, theories and policies, dar al-kutub, edition 1, 2015, p. 325 22. the same source, p. 329 23. ibrahim katea al-jourani, hussein braisam al-hamidawi, structural correction programs in the iraqi economy and their reflection on society, wasit university library, 1st edition, wasit, 2020, p. 119 24. ibrahim katea al-jourani, hussein braisam al-hamidawi, structural correction programs in the iraqi economy and their reflection on society, wasit university library, 1st edition, wasit, 2020, pp. 254 and 255 25. ahmed brehi al-ali, global oil market analysis, central bank of iraq, march, 2016, p. 18 26. jaafar baqir alloush and others, financial and monetary policies in the iraqi economy, the national library, 1st edition, iraq, 2019, p. 186. 27. the federal general budget law of 2015. 28. robin mcconnachie, primary dealers in government securities markets, center for central banking studies, handbooks in central banking, no.6, bank of england, london, may 1996, p.24. american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 82 www.americanjournal.org changes in management as an important factor of sustainable development of corporations yusupkhodjaeva gulchekhra baxadirxodjaevna doctor of philosophy in economics ( phd ) turaev o. a. master student of group 47-m-21 kb tstu tashkent state technical university gulchehra76@mail.ru a b s t r a c t k e y w o r d s corporate governance currently plays a key role in the economic development of the country. in this article, we consider the concept of corporate governance as well as its development in uzbekistan. it also briefly discusses the history of corporate governance and the importance of applying the principles of corporate governance in the activities of companies. this overview of the main definitions is followed by the necessary regulations adopted to improve corporate governance practices in uzbekistan. the article also discusses the application of corporate governance principles in developed countries, including the usa, germany, great britain and the european union. corporate governance experience, corporate governance, corporate governance models, corporate governance legislation the experience of corporate governance of countries proves that in order to compete and enter world markets, first of all, gradual economic reform, restructuring and deepening diversification, and the creation of new enterprises based on high technologies are necessary. in modern conditions, the main goal of any corporation is sustainable development and the formation of long-term values. the company is faced with the question of how to develop a strategy in order to develop steadily and dynamically in a constantly changing market. effective growth strategies and structural transformations allow companies to optimally adapt to the new conditions of the modern market. corporate governance is known as the system that is used to control and manage a company. at the company level, it seeks to distribute responsibilities and powers among shareholders, directors and management. corporate governance is _ _ at the same time a control and reporting system, as well as the management process itself with the help of a certain set of rules and procedures . in particular, this is related to the actual behavior of corporations, the interaction between corporations and members of stakeholders. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 83 www.americanjournal.org another category definitions relate to the legal framework. to be more precise, it is more about the regulatory framework under which firms operate. it can be stated that the first category of definitions related to corporate governance is more applicable to cases of studying firms or groups of firms that operate in a particular country. sustainability is the basis for creating long-term company growth through the creation of long-term values produced in companies. business responsibility based on sustainable development is a key principle of the world-class company's strategy. sustainable development also means that companies act responsibly to achieve economic, environmental and social progress and innovation for the benefit of future generations. this target setting becomes necessary when developing a global strategy and developing a transnational corporation to achieve a leadership position in the market. the main priorities of the corporation's strategy are modern global trends and social responsibility to society. currently, transnational corporations identify a number of global trends that have the greatest impact on changes in strategy and enhance the role of corporations in the socio-economic development of society. these trends are digitalization , globalization, urbanization, climate and demographic changes. undoubtedly, one of the main trends is the digitalization of all areas of activity. already by 2020, the digital data array in the world will reach 44 zbytes . the introduction of virtual production and the use of automation are changing the technological order of society and allow reaching a new level in the management of the value chain, relationships with customers and suppliers, building a global communications infrastructure, effective industrial communication and security, as well as in company value management. in addition, the success and competitiveness of an organization directly depends on the timely implementation of new technological solutions for product life cycle management. globalization is an important factor in increasing the volume of international trade and the formation of close cooperation in the process of data management throughout the value chain. for example, from 2005 to 2014, the volume of international trade almost doubled. the current conditions open up opportunities for companies to develop industrial production and introduce technologies in strategically important sectors of the economy. researchers predict that by 2050, 70% of the world's population will live in cities. in connection with the strengthening of the process of urbanization in modern society, the use of smart technologies in city management is more actively carried out to create a comfortable living environment and improve living standards. in this regard, the development of urban infrastructure is an important task, the solution of which depends on unlocking the potential of cities and attracting investment. it is transnational corporations that, predicting and taking into account this process, implement smart solutions that lead to high social responsibility to society. climate change is of great importance for the company's strategy. following current environmental standards, transnational corporations are changing production towards the use of "green" technologies. demographic changes are also an important trend in modern society. the population change forecast assumes growth from 7.3 billion people. in 2015 to 9.6 billion in 2050. maintaining a low level of unemployment and improving the quality of human resources becomes important for the country's economy. transnational corporations are an attractive employer that influences the development of competencies and allows the training of highly qualified specialists to ensure a high level of employment. transnational corporations clearly predict changes in the external environment and evaluate its impact on changing processes in the organization to improve performance and quickly transform the internal american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 84 www.americanjournal.org environment of the company. effective structural transformations in companies are built from the change management process model. at the same time, it is important to evaluate the effect of these changes in the strategy and organizational activities of companies. a properly developed strategy that quickly responds to market changes makes it possible to make a significant contribution to the development of progressive and innovative activities of society. today it is necessary to combine the business interests of the company with the program for the development of the country and its key sectors of the economy, with the interests of the population and the priorities set by the state. to determine the real contribution of transnational companies to the modernization and development of the economy and society, it is necessary to develop a methodology for evaluating performance. a number of corporations develop their own parameters for assessing the contribution to the development of society and innovation, depending on the field of activity. in these processes, several main directions are distinguished, corresponding to the most significant aspects of the country's socio-economic development. 1. development of the economy and industry . in addition to a direct contribution to gdp, national corporations provide advanced technologies and develop their own local production of high-tech equipment. 2. localization of production . efficient development of a network of local suppliers and an increase in the share of russian components in the innovative and high-tech products of the corporation allows us to adapt modern technologies to the standards and needs of the customer, providing them with reliable technical support and service at our own production base. 3. development of human capital . companies create the necessary conditions for self-realization of employees, unlocking their professional potential, as well as increasing labor productivity and new competencies. 4. development of innovations. corporations, through implementation in strategic areas, play a significant role in the digitalization and implementation of innovations in the industry, which contributes to increased efficiency and business optimization. 5. improving the quality of life . transnational corporations make a significant contribution to the improvement of the urban environment, introducing their environmentally friendly , resource-saving and energy efficient developments in various infrastructure projects. high social responsibility is also facilitated by the implementation of sponsorship projects and extensive charitable activities. 6. support for transformations . the development and implementation of new technological processes has an impact on the change in economic processes in the country, creating the preconditions for establishing new standards for responsible business conduct. thus, the analysis of these priority areas makes it possible to determine the vector of the company's further development, taking into account the current socio-economic priorities of the country. companies have a lot of work to do to improve the level of corporate governance. those who manage to achieve success in this area will be able to increase their efficiency and investment attractiveness, reduce the cost of attracting financial resources, and as a result, gain a serious competitive advantage american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 85 www.americanjournal.org references 1. baymanova l.a. principles of effective corporate governance // modern science-intensive technologies. 2014. no. 7-1. p. 16-17; 2. khrabrova i.a. corporate governance: issues of integration / i.a. khrabrova. m.: science and technology, 2000. 198 p. 3. corporate governance: history and practice [electronic resource american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 27 www.americanjournal.org the role of tourism in the sustainability of ancient cities / mosul's old city as a model elham khudair abbas shubbar researcher and academic specialist in tourism economics elhamshubbar@yahoo.com naser nazar mohamed raof north technical university /nenava technical institute a b s t r a c t k e y w o r d s the problems of preserving the old city of mosul with its historical landmarks has become one of the necessities of preserving its identity and history of mosul, which faced great challenges of events, wars and destruction and required reconstruction in order to preserve the identity, culture and history of the old city of mosul, and ignoring the role of tourism in preserving the old city of mosul and its monuments of archaeological, historical, religious and cultural value, as it is not only dealing with its landmarks, but must be expanded to include what surrounds it in order to preservation, and highlighting the stages of reconstruction witnessed by the old city of mosul and its landmarks, and the weak interest in its buildings of historical, archaeological, cultural and religious value, and the severe lack of basic services in the old city of mosul, which in turn makes it an obstacle to the sustainability of the old city in terms of tourism, the old city of mosul faced a conflict between destruction and reconstruction, as the preservation of the old city of mosul with its landmarks of tourist value has become a complex challenge, especially in the face of the destruction of its infrastructure and landmarks, and the subsequent stages of reconstruction in its various dimensions, and the developmental role of tourism in the sustainability of cities is one of the effective trends, especially in historical cities with a tourist dimension, and that sustainable tourism is one of the elements of preserving historical cities for their direct adherence to their landmarks. especially in historical cities with an archaeological, historical, religious and cultural fabric such as the old city of mosul, and the research aims to develop mechanisms to maintain the sustainability of the old city of mosul through the development of the developmental aspect of tourism, which is breezed with the city, and through that the research adopts a number of tourism, sustainability, sustainability of ancient cities american journal of business management, economics and banking volume 11 april, 2023 p a g e | 28 www.americanjournal.org research methodologies, and ending with the applied approach that sheds light on the experience of the sustainability of the old city of mosul, in which the most important obstacles and challenges that stand in front of the sustainability and development of the old city of mosul are identified, and solutions that contribute to the preservation of the old city of mosul with its landmarks, especially through the development and development of the tourism side, and the research concludes ways to develop the tourism aspect for the sustainability of the city by clarifying the most important rehabilitation and reconstruction projects, and employing them positively in proportion to the historical status of mosul and culturally and touristically. table of content the address page number content list a,b the introduction 1 research methodology 2 the first topic theoretical and conceptual framework for the developmental role of tourism and the sustainability of cities 1the concept of tourism 3 2the concept of sustainability 3 3the concept of sustainable cities 3 4the basic dimensions of tourism in the sustainability of ancient cities 3-4 5the relationship between the goals of tourism and the sustainability of ancient cities 5 the second topic selected experiences on tourism and the sustainability of ancient cities 1the basics necessary for tourism to sustain the ancient cities 6 2the different trends of tourism in preserving the sustainability of historical cities 7 3the desired goals of tourism for the sustainability of historical cities 7 4the importance of tourism for the sustainability of historical cities 18 5countries' experience in sustainable development 8 the city of aleppo in the sustainability of its tourist and historical features 8 9 the third topic the reality of the ancient city of mosul, projects and challenges in its sustainability 1the ancient city of mosul is the origin of the name 10 2the ancient city of mosul historically 10 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 29 www.americanjournal.org 3the old city of mosul site 10 4characteristics of the ancient city of mosul 10 5reviving the old ones 11 6its doors 12 7its markets 13 8its streets 13 9its religious features 1314 10its historical landmarks 1415 11its cultural features 15 12monitoring the experience of the ancient city of mosul for the sustainability of its tourist attractions 1516 13challenges and obstacles faced by local and foreign projects in the process of sustaining the ancient city of mosul 16 14recommendations 17 15conclusion 18 16list of sources and references 19 17appendices 20-24 list of shapes figure title page number 1the basic needs of tourism development for cities and their connection to sustainability 6 2the main idea of historical cities is to prepare access gates for tourist tours 18 introduction: many countries see tourism as a quick solution for economic development, especially those that have ancient cities of ancient historical and cultural value that plan and make great efforts to sustain and preserve them. also the old city of mosul is one of the cities that enjoys a distinctive historical, cultural and urban value, as it is famous for its historical, religious, heritage and civilizational landmarks, which form distinctive tourist attractions. the old city of mosul, like other historical cities, faced many challenges in events that spread chaos and destruction, causing great damage to its infrastructure. public, historical and tourism, and the importance of research by presenting the most important attempts to rebuild it and work to activate the role of tourism for its sustainability in terms of historical, archaeological, religious and cultural aspects, and highlighting the most important local and international projects, donor countries, the ministry of tourism and antiquities and the nineveh antiquities inspectorate that worked to bring it back to life again, and its sustainability, but it is not at the level of ambition, as the old city of mosul contains many of these elements, whether historical or archaeological, such as (bashtabaya castle, the nineveh wall, the villages of saray, and the old houses). al-qasim, the church of the hour, and the church of the immaculate), and as for the natural neighborhoods overlooking the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 30 www.americanjournal.org tigris river (al-midan, kleiat, al-shahwan) and activating the role of tourism for this ancient city that faced destruction and devastation and restoring life to it and its components that it possesses by highlighting projects and companies that work to restore rehabilitation, reconstruction and sustainability, to restore its splendor, since the ancient city of mosul is the mosaic of mosul, and to know the most important obstacles that faced these projects in the process of rehabilitating it to be a tourist attraction for all its visitors and an economic one for its local population, and we divided the research into three investigations to cover the subject the first topic: the theoretical and conceptual framework the second topic: selected experiences on tourism and the sustainability of ancient cities the third topic: the reality of the ancient city of mosul and the role of tourism in its sustainability, then the conclusion methodology first: the research problem the research problem is represented in the absence of the role of tourism in preserving and sustaining the ancient city of mosul, despite the devastation and destruction the city and its landmarks witnessed in its infrastructure, and that the reconstruction and development campaigns began to start their work, but in a slow and sluggish manner due to the weakness of the policies used in its reconstruction and rehabilitation, which affected the performance of its role as an ancient city distinguished by its identity its cultural and historical value meets the needs of its residents and arrivals. second: the objectives of study 1) studying the ancient city of mosul and showing its distinctive historical, cultural and urban value 2) studying the experiences of the sustainability of ancient cities and benefiting from them in tourism 3) shedding light on the projects completed by the supporting authorities for the process of rehabilitating the old city, sustaining it, developing it for tourism, and keeping it vital to meet the needs of its residents and visitors. third: methodology we followed the descriptive analysis approach to explain the ancient city of mosul in terms of geography, spatial, historical, civilizational and cultural aspects in general, reconstruction campaigns and indicators of its development in particular, and the applied approach by highlighting the reality of the most important local and foreign reconstruction and development projects, and the problems and obstacles that stand in the way of tourism to activate its developmental role in preserving the city old mosul. the first topic theoretical and conceptual framework for the developmental role of tourism and the sustainability of cities first: concepts 1: the concept of tourism tourism is represented in the german definition of fulloral (as a phenomenon of the era, emanating from the growing need for rest and relaxation, changing the atmosphere, feeling the beauty of nature and tasting it, and feeling the joy and pleasure of staying in natural areas, especially (zaki, 2006: 7071) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 31 www.americanjournal.org 2: the concept of sustainability 2-1 the concept of sustainability is a case in which utility and consumption do not contradict each other over time 2-2 the state of sustainability is a state in which resources are managed in such a way as to preserve production opportunities in the future 2-3 a state of sustainability is a state in which the stock of natural capital does not diminish over time 2-4 the state of sustainability is a state in which resources are managed in such a way as to maintain the sustainable production of resource services. 2-5 the state of sustainability is a state in which the minimum conditions for stability and resilience of the ecosystem are satisfied or met (shubber et al., 2016: 39-40). 3: the concept of sustainable cities they are environmentally safe, socially inclusive, and economically productive cities (united nation human settlements program, 2009:16). they are cities that are planned taking into account the environmental impact, and reduce the consumption of energy, water, and food inputs, as well as reduce outputs from water and soil pollution (chan, 2016: 5). ) and that it is the city that works efficiently for the benefit of its citizens at the present time, without causing problems for either its citizens or the whole world in the future (sustainable cities index, 2015: 2) 4: the basic dimensions of tourism in the sustainability of ancient cities according to the world tourism organization, tourism within the framework of the sustainability of ancient cities with its three dimensions, economic, social and environmental, includes the effects it exerts on those dimensions, whether at the present time or in the future. 4-1) tourism policy and governance it includes the status or location of tourism in the sustainable programs and policies of the ancient cities, and its relationship to the regulatory framework, and the establishment of institutions in the sector. 4-2) economic performance, investment, and competitiveness, and includes four topics, starting with how to measure tourism and its economic area, passing through studying the economic, commercial and investment environment, and addressing the subject of the product, its marketing and its position in the market, and finally reaching the study of risks and security in tourism 4-3) employment, appropriate work, human capital: it includes two main axes, namely human resource planning, work conditions, qualifications and training. 4-4) poverty reduction and social integration: this is done by focusing on an integrated approach to reducing poverty through tourism, supporting initiatives to enhance tourism activity, including groups affecting the tourism sector and preventing negative social impacts. 4-5) sustainability of the natural, historical, cultural and religious environment: this is done through four axes linking tourism to the management of natural, cultural, historical and religious heritage. the cities of al-dhawara are historical, natural, religious and cultural (tourism for sustainable development in least developed) 5: the relationship between the goals of tourism and the sustainability of ancient cities the 2030 cities sustainability plan obliges unwto member countries to achieve sustainable cities by focusing on tourism goals, and on those directed in particular to tourism activity. here, in particular, it relates to the eighth goal (9.8 target) by requiring member countries to develop and implement policies it encourages tourism that creates job opportunities and enhances local culture and products, and the twelfth goal (12 target), which highlights the importance of tourism to create job opportunities american journal of business management, economics and banking volume 11 april, 2023 p a g e | 32 www.americanjournal.org and promote religious, natural and tourism culture in the city and its sustainability, and the fourteenth goal (14 target), which considers tourism as one of the tools that increase economic benefits in their sustainability for ancient cities (tourism & sdgs. unwto. united nations) paragraphs 130 and 131 of the plan clearly refer to the importance of tourism in contributing to the sustainability of cities and encouraging investment in them, especially cultural, environmental, religious and natural, given its close links with other sectors, and its ability to create new business opportunities through the establishment of sustainable small and medium projects, and facilitating access to to finance and increase the environmental, religious, cultural and natural awareness of the ancient cities and improve the well-being of their local communities and their livelihoods, and tourism is also seen in the sustainability of the ancient cities, within the framework of chapter vii of agenda 21 of the united nations general assembly, as a tool to promote sustainable economic growth, especially environmental ones, by protecting the tourist sites in the city, whether they are historical, cultural, natural or historical (sustainable tourism, sustainable development knowledge platform) and the goals can be summarized as follows: 5-1 promoting sustainability in the tourism industry by respecting and preserving environmental, religious, cultural and historical standards in ancient cities. 5-2 respect the traditions, customs and culture of local communities through effective communication with them; and the development of projects that limit the exploitation of children and illegal acts, including contributing to the continuous training of tourists and workers in the sector as a whole on the cultural, ethical and social values of local communities 5-3 making the local communities of the old cities an important economic and social dimension, in addition to empowering the residents of the tourist areas in all new tourism projects by integrating them into tourism programs and organizations. 5-4 the tourist can contribute to positive social and cultural change, to the promotion of human values and respect for human rights and beliefs, and to changing the lifestyle of ancient cities. also, the sustainable behavior of the tourist may be a message for the development of a new culture in society. his sustainable practices in his rational exploitation of the cultural, religious, natural and historical resources in the ancient cities, and respect for laws, instructions and procedures, are important factors in the way in the sustainability of cities, which moves from one city to another and this is all it requires an effort at the international, governmental, and industry levels as a whole. (1999. sustainable tourism: a non-governmental organization perspective, the second topic selected experiences on tourism and the sustainability of ancient cities first: the necessary foundations for tourism to sustain the ancient cities the general objective of tourism as a productive and economically feasible sector is to provide resources that help sustain historical cities to become more attractive areas for tourists for the current generation and future generations. 1the economic goals represented in balancing the balance of payments, diversifying the economy, regional development, increasing job opportunities, and developing and reviving tourist facilities. 2cultural goals, which are represented in supporting and sustaining archaeological and historical sites, as well as customs, traditions, handicrafts, and popular markets. 3environmental goals, including sustainability 4preserving natural resources and protecting and exploiting them properly american journal of business management, economics and banking volume 11 april, 2023 p a g e | 33 www.americanjournal.org 5the general objectives include the greater sustainability of the diverse environments and cultures that characterize the city and bring it out at the local and global levels, and fulfill the needs of the source market for tourists. as in figure no. (1) the basic needs of tourism development for cities and their connection to sustainability second: the different trends of tourism in preserving the sustainability of historical cities 1traditional romantic trends (appearance trends) this trend is concerned with the external appearance only to show the historical city to encourage tourism and the connection with the past, such as the attempt of some cities to create a history for it, as it focuses on creating an architectural facility as a nucleus for historical centers such as the sustainability and renewal of the historical nucleus around dar al-istiqlal (fith 1989 independent hall 2the direction of completely removing the old, and establishing a new layout, and this direction was stated in the law of sustainability of historic cities in a formal way, and it was implemented in many arab countries, such as the old bab al-faraj project (aleppo syria) (stefanol 1987) and this direction is not appropriate for the resulting the city's loss of its historical ties that distinguished it and its sustainability third: the desired goals of tourism for the sustainability of historical cities there are general goals that must be taken into account when sustaining historical cities through future tourism plans, and working in a balanced manner to achieve the goals of the city in order to match its sustainable tourism development increasing tourism investments, the number of tourists, and the sustainability of cities tourism development sustainability increased tourist demand sustainability of natural resources sustainability of cultural resources sustainability of complementary services providing for the needs of tourists ease of communication and field of movement regional and local stability increased possibility of travel improve your travel profile tourism specialization increased roaming increase attraction fewer government restrictions american journal of business management, economics and banking volume 11 april, 2023 p a g e | 34 www.americanjournal.org sustainability with its local components and capabilities, and the general goals can be focused on the following. 1encouraging tourism knowledge and culture and cultivating tourism values among individuals 2deepening knowledge of the importance of tourism and its positive effects on all aspects of social, economic, tourism and civilizational life. 3the necessity of preserving and sustaining archaeological, tourism and cultural resources, as they are a national, national, international and human wealth. 4focusing on the importance of the city's heritage and its cultural significance 5introducing the citizen to the city's archaeological and tourist attractions 6 activate the tourism movement in the city to raise knowledge and national belonging. fourth: the importance of tourism for the sustainability of historical cities the importance of sustaining historical cities comes for many reasons, the most important of which is that the historical city in general is a gateway to access its tourist potential such as its tourist sites archaeological sites its parks its beaches) and it is an important nucleus for tourist attraction in terms of services and facilities, and it represents the starting point for regional tourist tours, in addition to owning the city many elements of tourist attractions, such as mosques churches parks baths, and what distinguishes the city from others, as shown in figure no. (1). (al-hamidi, 2002) the main idea of historical cities is to create access gates for tourist tours all of this illustrates the importance of the city not only from the historical side, but also includes many social, cultural, environmental and economic aspects that work on sustaining the city to play its role in tourism development in an effective way that achieves many economic benefits for the city and supports its tourist attractions, which were not useful unless there was movement and tourism activities. a variety that attracts different segments of tourists and meets their needs. fifth: countries' experience in sustainable development 1the experience of the city of aleppo in the sustainability of its tourist and historical attractions the revival of old aleppo was the result of years of neglect. in the twentieth century, the old city became suffering from poor economic and construction conditions. therefore, the aleppo city council protected the unique urban fabric of the old city and its distinctive urban heritage. the process of comprehensive revival of the ancient city of aleppo is based on integrating the necessary tools and policies to achieve the necessary urban development while preserving the heritage and originality of the ancient city of aleppo. institutions have emerged that support the project at the churches historical location access gate city limits old mosul coffee shops hotels restaurants american journal of business management, economics and banking volume 11 april, 2023 p a g e | 35 www.americanjournal.org local and international levels, such as the international agency for technical cooperation, the arab fund for development, the aga khan institutions and the association the friends of aleppo, and the gtz institutions, adopted a project to revive the traditional markets in the city. the project began with a study of the surroundings of the great umayyad mosque, funded by the arab fund for economic and social development. then this study expanded to include the entire traditional market that extends from bab antioch to zarb market, which covers an area of 12 hectares. from the covered markets, the project includes the rehabilitation and beautification of these markets, and the restoration of the sweet school adjacent to the great umayyad mosque, in addition to improving the infrastructure of a sewage network, drinking water and electricity in the markets area, where the project was divided into stages that began in 2004. the traditional houses were distinguished by their inner courtyards and distinctive planning, but with the expansion of the city and the emergence of new areas that meet the needs of the age in terms of the requirements of life in the old town as a whole, social ties were torn between them, and the transfer of limited funds planned for supply operations outside the old town increased migration outside the old city. the idea of the old city revival project emerged, and its main objective is to preserve the uniqueness of the historical fabric of the old city, and to put an end to the deterioration of their residential neighborhoods, by stimulating economic and social development and improving the living conditions of the population. 2the experience of the city of alexandria in the sustainability of its tourist and historical cities international, arab, and egyptian experiences have proven the success of the experience of sustaining tourist and historical sites in cities and achieving many benefits. sustainable tourism has been adopted as a pattern for developing cities, tourism development, and encouraging investments. civilizational and architectural, and stimulation of maintenance and restoration work, and the recovery of the city led to an increase in tourism movement and the return of the city of alexandria to its tourist status as a summer city, and the starting point for the launch of tourist trips to neighboring sites and the northern coast, and encouraging the private sector to participate in the sustainability of the city of alexandria as a pioneering experience, that can be emulated by it in the rest of the cities, which reduces the burdens of governments and localities, and that the process of preservation is a vital process that is not intended to freeze the historical cities as they are, but the goal of their sustainability, to develop them is a development that guarantees their survival in a vital way and achieves the purposes of their residents, and it is not intended to turn them into a museum, and that the movement corridors and access roads in the city are among the most important influencing elements on the tourist movement, its development removes traffic problems, and many problems harmful to the environment and affecting the economic and commercial situation, and one of the most important success factors for the sustainability of the city of alexandria is to maintain it as a vibrant body in which economic, social, religious and tourism activities converge to preserve its human character, that meets the needs of different population segments, through a comprehensive strategy for urban development and integrated sustainable development, according to an acceptable and clear methodology locally, urbanly, architecturally and culturally. the third topic the reality of the ancient city of mosul and the role of tourism in its sustainability first: the ancient city of mosul is the origin of the name american journal of business management, economics and banking volume 11 april, 2023 p a g e | 36 www.americanjournal.org the ancient city of mosul was called by many names, including umm al-rabeein, because the bekaa is green twice a year. al-maqdisi, 1906: 136-139) and it was called khawlan among the arabs because it used to connect between the mountain and the plain and between iraq and the levant (al-moarab, 1389: 94) second: the ancient city of mosul historically the history of ancient mosul dates back thousands of years, as historical research revealed that the qleiat region includes under it the first agricultural villages dating back to the sixth millennium bc, despite the old age of mosul, and that the ancient region, its alleys, and its architecture were affected by the civilizations and architectural phases that came to mosul, especially the islamic civilization with its many countries, that the islamic history in mosul began in the year 16 ah (637 ad) when the great mosque (al-musfi mosque), the house of the islamic emirate, and the sirajeen market were built there. what distinguishes old mosul is that all its houses were built of bricks and bricks (plaster), and the knot system with which the houses and their roofs were built without any reinforcement, which is a distinct architectural art in construction that many builders today are no longer good at imitating. (ibrahim, 1991: 121 the ancient city of mosul within the wall of mosul consisted of 29 localities bearing the names of mosques, clans, or ancient mosul landmarks. it was mentioned in the ottoman record of 1839, which i translated from ottoman into arabic. third: the ancient city of mosul site the city of mosul, which is the center of nineveh governorate, is located in the middle basin of the tigris river within the northern part of iraq. east, south and southwest. (al-janabi, 12: 1991) fourth: characteristics of the ancient city of mosul 1reviving the old ones 1-1) al-sargkhana locality, one of the shops, i mean the neighborhoods of the old city of mosul, and it was located within the wall, it is in the old city, and its age reaches 7000 years, and the word alsargkhana is a turkish word meaning (the place of the lamp); a turkish suffix, which in arabic means (shop), and the saddlebag started as a locality famous for making horse saddles. 1-2) kleiat locality include the following al-midan: it is the field that used to extend in front of (aig qalaa) during the ottoman era, and the janissary army used to live in the castle. the castle gate is one of the well-known gates of mosul and is located on the tigris river. hush al-khan: in this place was a large caravanserai belonging to the al-diwaji family. a house was built inside it, and it was called (hosh al-khan), then the houses multiplied inside and outside it. the locality was given this name. gate of the prophet: relative to the mosque of the prophet jarzis, peace be upon him. ras al-kour: the area was full of gypsum bowls in which the gypsum was proud, and the ceramic utensils made by the quenchers, such as grains, sherbet, and bread skirts that are made so far and imam ibrahim: relative to the mosque of imam ibrahim, peace be upon him. it extends along the western bank of the tigris river and is considered the historical nucleus on which the constructions of the old city of mosul are built. it is called the river front of the right side of mosul. it contains about 4,500 houses out of 15,000 houses in the old city, in which 4,931 houses were completely and almost completely destroyed, and a section of the houses in the qleiat area belonged to the christian endowment. the other is for the sunni endowment, and some for the department of antiquities, including for the municipality of mosul. what was destroyed of “qalaiat” is about 3,000 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 37 www.americanjournal.org houses out of 4,500, including 2,000 houses in the locality of al-midan alone, which is the most destroyed and damaged, as 62% of them were completely destroyed and 38% were severely damaged, in varying proportions between (50% 70%), and with campaigns to open roads and remove rubble, and each house needs between 10,000 15,000 dollars as a minimum for its reconstruction and the local government in nineveh, and despite allocating billions and spending it on removing rubble from the old city, but there are more than 70% of it it still constitutes the greatest burden on the people.” as for the executive director of the mosul reconstruction committee, abdul qadir al-dakhil, in turn, confirmed that 75% of the ruins of the old city have not been removed yet. 2its doors 1-2) gate of the prophet zarzis: relative to the mosque of the prophet zarzis, and there is a sub-locality called the locality of mahdhar bashi, in relation to the family of mahdhar bashi, whose grandfather was the chief clerk of the record in the sharia court 2-2) bab al-saray: relative to bab al-saray adjacent to the government serail in the ottoman era, where the seat of the governor, then it became a police station under the name of the general center. the new gate (new gate): in reference to the new gate, which was renewed by the omaris in the year 1725 ad. it was mentioned by ibn al-sha'ar in the events of the year 654 ah / 1255 ce in qaila'id al-jiman. 2-3) bab al-bayd: the door leading to the west of the city, and outside the door is the al-bayd market, in which the bedouins used to sell eggs daily. khazraj: relative to the khazraj tribe that inhabited it. 2-4) bab al-toub: one of the vital commercial neighborhoods in the old city of mosul, also known as jubat al-baqqara. it is bordered by the tigris river from the east, while from the north it is bordered by the locality of al-midan, from the south by the locality of al-dawasa, and from the west by the locality of jami’ khuzam and the locality of sheikh fathi. it is the ottoman name for the cannon. 2-5) bab sinjar: it is the remains of a khan on which the village of the khan near sinjar is located. for travelers, merchants, students of knowledge, and tourists, this door was built with large engineered stones, and decorated with exquisite decorations, the most prominent of which is a picture of a dragon or a serpent that was used to be used by the people of mosul and its neighborhood. and you see next to each of them a soldier or an angel with a spear in his hand stabbing the head of the mythical animal. 2-6) bab laksh: the straw door) opened in the year 1217 ah 1802 ad, and the straw in the dialect of our people in the countryside (al-kish), and the straw in the dialect of the people of mosul is dry grass from the stems of wheat. al-himyar in the well-known al-baradjiah market in mosul, and bab al-kash or al-qish is the same one that people know as bab laksh, and it is located between bab altoub and bab al-jadid 2-7) bab al-bayd: bab al-bayd, which is the western gate of the wall of the city of mosul, and the presence of a spring with white water, and today there is a locality with the same name. new gate: the new gate was named after the expansion of the city to the south, as a new door next to the iraq gate (it was called the iraq gate because the destination from the country of mosul to iraq goes through it to enter the country of iraq). 2-8) the serail gate: relative to the serail gate leading to the government serail during the ottoman era, where the seat of the governor was 3its markets 3-1) al-safafir market: al-safafir market is located in an alley of al-midan neighborhood, east of the old city of mosul american journal of business management, economics and banking volume 11 april, 2023 p a g e | 38 www.americanjournal.org 3-2) al-najjareen market: al-najjarin market is located in an alley of al-midan neighborhood, east of the old city of mosul 3-3) al-sarg khana market: the market (al-sargkhana) or (al-sarraj khana) has been known by this name since the mongolian era, where saddles needed by horses were sold. it specializes in selling various fabrics and various luxuries. 4its streets 1-4) nabi zarzis street 2-4) al-farouq street 4-3) sarg khaneh street 4-4) khaled ibn al waleed street 4-5) corniche street within the framework of the "revive the spirit of mosul" project launched by the united nations educational, scientific and cultural organization (unesco) and funded by the uae and the european union, the aforementioned city streets were arranged, as well as city street lighting poles, drinking water pipes were laid and streets were paved with basalt stone. it started a few months ago and will be completed at the end of the current year directorate of the municipality of nineveh governorate / department of construction and projects 5its gardens 5-1) martyrs garden (emry park) in which the units of the ottoman army were trained, as it extended for great distances and included civil and military straws, and it was called the “emry garden” and leopold emery is the british colonial minister who occupied mosul during his reign 6its religious features 6-1) zainab khatoun mosque: it was also called (zuqaq al-hosn mosque), and this mosque was built by zainab khatoun, one of the galilean women more than 250 years ago. and it opened on july 15, 2019, may god bless her efforts and the efforts of those on her behalf to attend the opening where the reconstruction operations began by benefactors and donors from the people of mosul and under the supervision of the association of the people of good deeds, where work began on the 11th month of 2020 and the completion rate reached 50% in the shrine of yahya bin al-qasim 6-3) al-nouri mosque (great mosque) within the framework of the "reviving the spirit of mosul" project launched by the united nations educational, scientific and cultural organization (unesco) with funding from the uae and the european union, the design of a complete complex began with a duration of 5 years, and it was agreed to prepare for an international competition to redesign the "al-nouri mosque complex", not just the chapel, which includes gardens and other important facilities, and it was agreed to prepare for an international competition for the reconstruction of al-nouri mosque, and the competition was announced on november 16. unesco has succeeded in creating a qualitative leap for a type of iraqi heritage that it has taken to the world, the goal is not only design, but also introducing the world to the iraqi heritage, and it is hoped that the name of the winner will be announced in april 2021, within the framework of the "reviving the spirit of mosul" project launched by the united nations educational, scientific and cultural organization (unesco) with funding from the uae and the european union and with the assistance of the iraqi army, the start of campaigns to clean the site and remove remnants of war, took approximately six months, and was gradually lifted, and the project will include all stages of revival/restoration (preparation of the area, preliminary survey of the prepared american journal of business management, economics and banking volume 11 april, 2023 p a g e | 39 www.americanjournal.org detailed design, and practical implementation of the project), which will provide through participation in this work distinguished job opportunities for professionals and craftsmen in the field of heritage the practical implementation of this component will be closely integrated with the capacity building programmes foreseen under this project. 6-5) al-nabi sheet mosque where the reconstruction operations began by benefactors and donors from the people of mosul and under the supervision of the people of good deeds association, where work began on the 11th month of 2020 and the completion rate reached 50% 7historical monuments 7-1) bashtabia castle within the framework of the "reviving the spirit of mosul" project launched by the united nations educational, scientific and cultural organization (unesco) funded by the university of pennsylvania and alif and under the guidance and supervision of the ministry of culture and the general authority for antiquities and heritage, where committees from the inspectorate were formed, which took it upon themselves to document and estimate the size of the damage to the castle in terms of the site was lost the consolidation was important because of the presence of cracks in the upper layers, and the excavation and examination of the foundations and the preparation of the study at the beginning of this year and in the second phase, it will be in this year to study the report and monitor the costs, as the reconstruction of the castle is expected to end at the end of the current year and return capers tourist site, tourists enjoy looking through the climb to the beauty of the landmarks of mosul in full at the end of this year. (municipality of nineveh governorate / department of construction and projects) 8cultural landmarks 8-1) eastern preparatory school within the framework of the "reviving the spirit of mosul" project launched by the united nations educational, scientific and cultural organization (unesco) with funding from the uae, the european union and the undp, the reconstruction of the eastern high school, which is more than a century old, was completed, as it was founded in 1905 and represents a basic pillar of education it is considered one of the internationally supported projects that aim to improve the level of education service and provide the appropriate study environment for students 8-2) baytna foundation (patterned bath) manoucheh bathroom (mangoushi bath): relative to the patterned bathroom on al-farouq street, i.e. (painted bathrooms), which have many drawings throughout it. (the locality had a palace in the name of manqousha palace) and witnessed the locality of manqousheh in al-farouq street in old mosul the opening of the foundation (baytna for culture, arts and heritage) the first project of its kind in the old area of mosul city center, which is one of the projects to restore heritage buildings after the restoration of the house and undergoing internal redesign work to preserve the historical heritage of the city, within a joint cultural project funded by the united states agency for development (usaid) and in cooperation with the project (taafi) also the association of iraqi banks, the central bank of iraq, and the tamkeen project, and the project was implemented by mosul youth, headed by activist saqr maan al zakar, these sites will turn into platforms for promoting mosul culture and art through the establishment of seminars and festivals that contribute to the preservation of mosul culture and preserve it for future generations, and he explained, american journal of business management, economics and banking volume 11 april, 2023 p a g e | 40 www.americanjournal.org that heritage houses reveal stories of the past, and inspire hope and bring life to homes that have long been witness to the lives of families who have left their mark in the fields of trade, poetry, and music, journalism, and others, and pointed out that (our house) courtyard and spaces are open to receive visitors, as the first project falls within this context and will be a destination for pioneers of heritage and historical cities in our beloved city. second: monitoring the experience of the old city of mosul to sustain its tourist attractions it has the strategy set to achieve the goal of sustainability of the city in general and archaeological, historical and cultural monuments in particular. • focus on tourism activities with social, cultural and recreational dimensions • creating a sustainable tourism environment that meets all the needs of the local population and tourists • maintain the sustainability of archaeological, cultural and historical monuments and buildings in the city • providing infrastructure, superstructure and tourism services commensurate with the tourism growth in the city • reducing the sources of pollution in the city of all kinds • activating the role of tourism in the city and reviving and sustaining its archaeological, historical and cultural sites • promoting the mosul economy • reconstruction of historic buildings in the city • community reconciliation between segments of society to achieve the desired goals, within the project "reviving the spirit of mosul" launched by the united nations educational, scientific and cultural organization (unesco) funded by the uae and the european union and with the participation of the iraqi ministry of tourism and antiquities, the nineveh antiquities inspectorate and some charities in the city of mosul, and that the focus on the old city of mosul because it includes all religions and nationalities, all of them on one heart and terrorism entered and smartened the policy of divide and rule, expelled a certain group and destroyed a certain group and terrorized another group, in order to restore the sustainable tourist luster of the city of mosul and its landmarks, and its entry into the twenty-first century as a global mosaic, third: challenges and obstacles faced by local and foreign projects in the process of sustaining the old city of mosul 1) the central and local governments lack a real vision in the reconstruction of the city, and the preservation of its cultural heritage from extinction 2) the presence with rubble of unexploded materials, canisters prepared for detonation, and remaining corpses, which requires time to clean the buildings, which hinders the work of projects, whether local or foreign, and requires the process of cleaning the buildings 3) sufficient financial allocation of the city of mosul and its landmarks by the responsible authorities is not available except through donor or supporting organizations and countries. 4) supporting organizations and donor countries are lagging in their work in terms of financial monitoring of the city, and giving studies on archaeological, historical, cultural, and religious sites. 5) the media aspect maximizes the role of international organizations and donor countries, but in reality they do not deserve this glorification american journal of business management, economics and banking volume 11 april, 2023 p a g e | 41 www.americanjournal.org 6) support for the city of mosul and its landmarks by international organizations and donor countries is nothing but ink on paper for some religious, historical, cultural and religious monuments 7) ignorance of the responsible and competent authorities in the city of mosul and its landmarks of the concept of sustainability, which we note that there is no strong reconstruction movement for the civilizational, cultural, historical and religious landmarks in the city. first: recommendations 1raising the level of religious, historical, cultural and tourist sites in the city and increasing their effectiveness as a source of internal and external tourism, and the improvement is through their development and sustainability, which increases their promotional value 2subjecting the ownership of the city to the nineveh antiquities inspectorate, reviewing and following it up continuously. 3subjecting archaeological, historical and religious monuments in the city to regular rules to preserve their urban level, cultural heritage and external surroundings. 4developing the city's monuments and their sustainability for internal and external tourism 5periodic maintenance of archaeological, historical and religious landmarks to ensure their validity and sustainability as tourist attractions in the city, and to avoid dangers arising from use, weather and environmental factors 6making an entrance or visual axes to the city and its landmarks to increase the attraction of visitors to the city and its landmarks 7adding indicative signs in the city and what it contains of religious, archaeological and historical landmarks to give a historical overview of each of its landmarks to clarify its importance and impact 8saving the sustainable pattern in the city by preserving its landmarks and creating a sustainable pattern data bank that provides all information about the city's landmarks 9the role of public interest in the city and its landmarks has a key role in protecting and maintaining its cultural wealth, developing public awareness through the media, educational curricula, and the work of cultural clubs within the city, such as the baytna project. 10activating the role of the private sector in the city, governmental and non-governmental institutions, associations and businessmen in the development and sustainability of the city 11establishing an economic base in the city by finding jobs suitable for the nature of its religious, archaeological, historical and cultural landmarks for the local population, which stimulates the tourist movement, encouragement, preservation and sustainability. 12coordination of collective work between the tourism and antiquities authority, the ministry of tourism and antiquities, the nineveh antiquities inspectorate, the municipality of nineveh governorate, local councils, popular leaders and the urban planning commission to participate and consult in decision-making conclusion: international experiences have proven the success of tourism in the sustainability of archaeological and historical sites in city centers and achieved many benefits, as a pattern for the sustainability of cities and achieving tourism development, and the benefits of sustainability for the city focused on preserving and preserving its archaeological, historical and cultural monuments and stimulating their sustainability, and that the recovery of the city and the sustainability of its recovery will increase tourism movement and the return of the old city of mosul, the mosaic of the world and encouraging american journal of business management, economics and banking volume 11 april, 2023 p a g e | 42 www.americanjournal.org the private sector, on the sustainability of the old city of mosul can be emulated by the cities remained, which reduces the burden of governments and localities, and the process of preserving and sustaining the city is not intended to freeze the city, rather, the aim is to achieve the purposes of its destinations, not to turn it into a museum, and one of the most important factors for the success of the sustainability of the city is to maintain the vitality of its landmarks, as a vibrant body in which tourism, cultural, social and economic activities converge, which meet the needs of its visitors through a strategy, comprehensive for sustainable tourism development, according to an acceptable methodology for tourism, locally, internationally, culturally and urbanely . arabic and foreign sources 1) zaki ibrahim wafaa (the role of tourism in tourism development) modern university library alexandria egypt 2006 2) khoury elias, “tourism in lebanon and the world,” darmir for printing and publishing, 1st edition, 1985, beirut. 3) wafaa zaki ibrahim, "the role of tourism in social development," modern university library for printing and publishing, 1st edition, 2004, egypt. 4) elham khudair abbas shubar, nisreen ghali qassem, “privatization and tourism development,” dar al-ayyam for printing and publishing, 1st edition, 2016, amman 5 united nations human settlements program (un-habitat);planning sustainable cities: global report on human settlements 2009; earthscan in the uk and usa :2009 6) chan, n. w., h. imura, et al., eds. sustainable urban development, water watchpenang & yokohama city university. 2016 7) arcadis sustainable cities index 2015 balancing the economic social and environmental need of the world leading cities 2015 at website www.arcadis .com / sc12015 8) unwto.2017. tourism for sustainable development in least developed countries, world tourism organization(unwto), the international trade centre(itc) & the enhanced integrated framework(eif), itc printed, geneva, switzerland, p : 12 (9 un deparetment of economic & social affairs. 2017. sustainable tourism, sustainable development knowledge platform, deparetment of economic & social affairs, united nations, new york 10) institutional relations & resource mobilization. 2016. tourism & sdgs. unwto. united nations, new york 11) uncsd steering committee. 1999. sustainable tourism : a non-governmental organization perspective, commission on sustainable development(uncsd), background paper04, united nations, new york, p : 01-08 page 383 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 43 www.americanjournal.org manoucheh bath after liberation manoucheh bathroom after ages al-manqooshi bathroom from the inside american journal of business management, economics and banking volume 11 april, 2023 p a g e | 44 www.americanjournal.org al-manqooshi bathroom from the inside entrance to the engraved bathroom american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 103 www.americanjournal.org exchange rate risk management in international credits author: yakubov jakhongir workplace: tashkent institute of finance position: assistant teacher email: y.jakhongir1@gmail.com tel: +998974324652 a b s t r a c t k e y w o r d s with the change of the currency regime rate from crawling peg to almost floating regime uzbekistan government is trying to remove all restrictions regarding foreign currency use by individuals as well as companies and liberalize its currency regulations. on the one hand this long-awaited reform which allowed everyone equal access to currency markets, gives local businesses and individual opportunities to employ foreign currency operations, but on the other hand it will make the national currency exchange rate extremely volatile and have a big impact on companies with assets and liabilities denominated in foreign currencies making them exposed to foreign exchange risk. the paper will investigate the condition of the exchange risk management in uzbek financial organizations and try to identify problems and challenges related to currency risk management methods and techniques. moreover, level of currency risk exposure and tools used by the commercial banks for risk management will be reviewed. experience of the world bank, asian development bank, european bank of reconstruction and development, international monetary fund and japanese banks will be reviewed and discussed. ebrd, adb, hedging, var, cvar, stress testing, back testing, foreign exchange, it introduction with the change of the currency regime rate from crawling peg to floating regime uzbekistan government is trying to remove all restrictions regarding foreign currency use by individuals as well as companies and liberalize its currency regulations. on the one hand this long-awaited reform which allowed everyone equal access to currency markets, gives local businesses and individual opportunities to employ foreign currency operations, but on the other hand it will make the national currency exchange rate extremely volatile and have a big impact on companies with assets and liabilities denominated in foreign currencies making them exposed to foreign exchange risk. although central bank still has the responsibility of maintaining the national currency’s stability foreign exchange risk american journal of business management, economics and banking volume 12 may, 2023 p a g e | 104 www.americanjournal.org has become one of the prevailing risks as both financial and non-financial companies are not aware of the risks related to exchange rates and have almost no experience of currency risk management. besides, market determined value of the national currency would be unpredictable due to high inflation rate and government-controlled interest rate. moreover, government initiatives to stimulate export and decrease the import would also have its effect on the value of the currency 1. literature review due to financial globalization and integration of capital markets, world has witnessed unprecedented increase in the volume of capital movement in form of investments, loans and deposits compared to last decades. according to unctad world investment report, only foreign direct investments (fdi) reached the amount of $1.8 trillion in 2017. the volume of foreign currency loans issued to governments, financial organizations and private companies are also exceptionally high which presents the great risk for domestic financial markets endangering the stable currency exchange rate which may threaten economic stability. in early 1970s, growing international capital movement put enormous stress on the gold standard of the us dollar thus leading to the abandonment of any link to gold and further adoption of the new system of floating currencies (schenk, tobias 2014). since high volatility of the floating exchange rates has a significant impact on the assets, liabilities and profits of companies operating on an international level. it has become an issue which has to be taken into account. currency risk management cannot be neglected by any financial or non-financial organization as they encounter currency risk due to dealings in foreign currencies for their own account or on behalf of their customer’s account. therefore, currency risk is an integral part of every firm’s decision regarding foreign currency exposure (allayannis, ihrig, & weston 2001). in order to secure their assets and cash flows from depreciation financial institution need to employ different methods of currency risk management strategies which involve eliminating or reducing currency risk (barton, shenkir, & walker, 2002). movements in the exchange rate affects cash flows, revenues and the asset value of large and small companies participating in the international capital movement. however, it is surprising that us companies, exporters, and producers are slightly affected by exchange rate movements (allayannis, george, ofek, & eli. 2001). commercial bank are holders of assets and liabilities denominated in foreign currencies and active participants of international financial markets and therefore they are constantly exposed to currency risk. according to (saunders & cornett, 2003) foreign exchange trading activities of commercial banks include: • trade of different currencies to allow clients international transactions; • trade of different currencies to allow clients participation in foreign investments; • trade of different currencies for hedging purposes; • trade of different currencies for speculative purposes. managing foreign exchange risk can successfully reduce bank’s foreign exchange exposure and ensure its cash flows and profit will not be affected by the fluctuations in the exchange rate. managing foreign exchange risk provides the following benefits to banks (berisha, asllanaj and shala 2014): • minimize the effects of exchange rate movements on profit margins • increase the predictability of future cash flows american journal of business management, economics and banking volume 12 may, 2023 p a g e | 105 www.americanjournal.org • eliminate the need to accurately forecast the future direction of exchange rates exchange-rate exposure is an important source of risk for multinational corporations. to mitigate the impact of exchange-rate fluctuations, it has been claimed that multinational corporations can employ risk-management strategies not only through financial derivatives, but also through operational hedges (allayannis, ihrig, & weston). financial organizations exposed to foreign exchange risk have following three options to manage their exposure. • they can choose to do nothing about their exposure • they can “hedge” against their exposure • they can partially hedge against the risks, or limit their hard currency exposure to set levels. a number of instruments can be used to hedge against foreign exchange risk (imf working paper 2006): • forward contracts and futures (agreements made to exchange or sell foreign currency at a certain price in the future) • swaps (agreements to simultaneously exchange or sell an amount of foreign currency now and resell or repurchase that currency in the future) • options (instruments that provide the option, but not the obligation, to buy or sell foreign currency in the future once the value of that currency reaches a certain, previously agreed, price) 2. background information on current situation 2.1 until the massive reforms began taking place in 2017 according to (imf report 2000) back in 1997 uzbekistan adopted a system of multiple exchange rates and it had one of only few transition countries that operated a segmented exchange market and multiple exchange rates, with strict control of export and import markets. uzbek sum had three exchange rates: two official and one unofficial. the official exchange rate, was set by the central bank and was at 4000 sum (2016) per dollar. the other, black market exchange rate reflected the much weaker real value of the currency. while the rate fluctuated however, the trend stood at roughly twice as much as the official rate. therefore, the uzbek sum may have only been half as valuable as the official rate. anyone doing business in uzbekistan had to use the official exchange rate. it was compulsory for exporters to turn over half of any foreign currency they earned to authorized banks at the official exchange rate. since the official exchange rate overvalued the national currency-sum, this transaction effectively seized a substantial chunk of exporters’ revenues, and discouraged exporters. chart 1 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 106 www.americanjournal.org 2.2 after the liberalization of economy and foreign exchange market. in 2017 (imf working paper 2018) uzbekistan changed course, putting the country on track toward building a more open and market-oriented economy. the most significant was the liberalization of the fx market in september 2017, with the official exchange rate depreciating by about 50 percent. the newly elected central bank governor began by increasing the interest rate from 9% to 14% which was the first step to foreign exchange market liberalization. for the last 5 years national currency has depreciated considerably (almost by 400%). moreover, the high inflation rate together with the problems of cash circulations has made it almost impossible for commercial banks to attract international credits in order to finance it projects. due to the globalization and integration processes taking place in the economy of uzbekistan, commercial banks are getting full access to financial resources from international crediting organizations which in turn is affecting commercial banks open currency positions and increasing exposure to foreign exchange risk. chart 2 source: http://www.cbu.uz/en/statistics/e-gdds/data/111575/ the new government is requiring commercial banks and other financial organization in uzbekistan to attract more and more funds and investments in order to finance all the necessary projects. shrinking inner resources and government budget funds are not just sufficient to satisfy the potential projects and big liquidity problems are being face by many commercial banks. in order to be able to successfully attract and employ international credits financial organizations in uzbekistan should learn manage their foreign exchange exposure effectively. according to central bank of uzbekistan external debt of the commercial banks are rising sharply so do the interest payments and it requires the applications of risk management and hedging instruments. 3. challenges and analysis of solutions 3.1 challenges and problems financial organizations in uzbekistan are facing with. having little integration with global financial markets, banking system in uzbekistan has developed its unique features and the way of operating. most of the banks being under direct control of the government have been paying little or no attention to risk management only fulfilling the 0.0 500.0 1,000.0 1,500.0 2,000.0 2013-q4 2014-q4 2015-q4 2016-q4 2017-q4 external debt of commercial bank disbursements interest payment http://www.cbu.uz/en/statistics/e-gdds/data/111575/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 107 www.americanjournal.org regulations set by the central bank as the main authority. in order to mitigate exchange rate risk the central bank has established limits on the open currency position of commercial banks. according to the regulation the open currency position for each separate type of foreign currency at the end of each operational day should not exceed 10 percent of the regulatory capital of the bank. the total amount of open currency positions on all currencies at the end of each operational day should not exceed 20 percent of the regulatory capital of the bank. this regulation has been the single mechanism to manage commercial banks exchange rate exposure. therefore, nowadays all the commercial banks in uzbekistan are facing the following challenges and problems in the area of exchange risk management: • no strategy of exchange risk identification, analysis and evaluation; • little awareness of exchange risk exposure • almost no hedging options due to poor stock market development; • unpredictable exchange rates; • lack of specialist in the sphere of risk management; in order to fill the gap in the currency risk management of uzbek financial institutions, immediate measures should be taken and risk management strategies should be adopted. 4. practice of development banks in foreign exchange risk management. 4.1 practice of the world bank in foreign exchange risk mitigation: the world bank group employs and suggests different currency risk management strategies depending on the circumstances in the country, financial market development, exchange rate regime and many other factors. below we will look at the some methods employed by the world bank to mitigate foreign exchange risks. 4.1.1 allocation of risks. the simplest measure that world bank suggests to minimize the loss of currency risk in financing important projects is to allocate the risks among parties who can manage it best. the currency risk can be assigned to either investor (bank, creditor, foreign and local investor), or to the government of the country (particularly taxpayers), or to consumers of the service. considering the current economic situation in uzbekistan risk allocation may not be as successful as in other countries due to a number of reasons. for example, it is generally accepted that investors (banks, local or foreign creditors) have the capability of hedging the currency risks in the financial markets that’s why they should be the ones to bear the risk of currency fluctuations. however, in case of uzbekistan because of underdeveloped financial market there is almost no chance of hedging the risk. as a result, investors would be left fully exposed to the risk. on the other hand, allocation of the risks to government could be another option where the government guarantees to cover the loss caused by exchange rates especially for projects with low profit-margin where investors are hesitant to invest. considering the situation in uzbekistan having no government controlled currency regime, allocation of the risks to government would be too big burden for the budget and even applied would be limited to little number of very important projects financed by commercial banks due to pre-determined agreements. currency risk in other commercial projects with international loans are impossible to be covered by the government. the third option of consumer-based allocation can be dangerous to future cash flows of the project as it means increase in the costs of the projects which affects demand for the product or service. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 108 www.americanjournal.org 4.1.2 local currency financing. the world bank group suggests and provides local currency financing in order to mitigate foreign exchange risks. with the developed currency market that would have been ideal for everyone as it would be possible to hedge risk exposure fully. however to generate resources in national currency financial institutions in uzbekistan attracting foreign currency denominated loans could make a deposit in hard currency with bigger bank and get loan from them in local currency and then provide local currency loans to their clients. taking into account economic situation in uzbekistan, hedging of this type would dramatically increase the cost of borrowing which could be extremely expensive and even overweight the exchange rate risk loses. that type of hedging will make the loan too expensive to cover. however this type of back to back loans can be applicable to micro finance institutions as usually their loans are smaller in amount and their profit margin is higher. figure 1. back-to-back loan structure (account maintained at local bank) https://www.cgap.org/sites/default/files/cgap-technical-guide-foreign-exchange-risk-mitigationtechniques-structure-and-documentation-oct-2006.pdf 4.1.3 currency hedges. theoretically foreign exchange risk could be easily eliminated by having forward contracts based on the amount of the currency needed in the future. however, long term forward contracts are available only for a little number of currencies. countries with low credit ratings like uzbekistan, even they still could enter into longor short-term forward agreements however the cost might be unaffordable for much of the institutions because of the high risks and exchange rate uncertainty. of course, development of fully integrated local currency markets is a lengthy and difficult process. nevertheless, it must be the utmost priority for emerging countries like uzbekistan to develop derivatives market. 4.2 asian development bank’s and european bank of development and reconstruction’s experience on managing currency risk management as providers of international loans both adb and ebrd closely monitor their credit portfolio and accomplishes risk assessment using sophisticated methods and technology. both financial organizations use almost similar techniques for assessing and managing currency risk. 4.2.1 matching the amount of assets and liabilities denominated in foreign exchange currency. strategy of matching the assets and liabilities involves immediate loaning or depositing operations in the same currencies which is an effective way of operational hedge. however, in case of international financial institutions like ebrd or adb it is a little different as they don’t accept american journal of business management, economics and banking volume 12 may, 2023 p a g e | 109 www.americanjournal.org deposits. they can easily match their assets with liabilities by issuing bonds appropriately to the currency and maturity dates of their assets. chart 3 source: http://cbu.uz/en/statistics/e-gdds/data/111578/ under the current circumstances in uzbekistan where financial institutions are capable of conducting both loaning and depositing in foreign currencies, putting into practice matching assets and liabilities would be very advantageous. on that course risk assessment committees should be established within each institution which would be responsible for assets and liabilities management. moreover, setting up sophisticated system enabling calculations of the future changes in the size of assets and liabilities would make this type of hedging very effective tool. it would decrease the foreign exchange exposure of financial institution at no cost and does not require the existence of financial market within the country. matching strategy, once applied properly will be one of the most appropriate techniques for uzbek financial institutions taking into account current economic situation. 4.2.2 var and cvar method. value at risk model is widely used for measuring exchange rate risk. adb and ebrd estimates the riskiness of their foreign currency portfolio using var or cvar systems. there are different model for calculating var all of which help us to evaluate future exchange rates and manage the currency risks. 4.2.3 stress testing. ebrd and adb conduct a series of stress-testing on a daily basis. stress testing is produced in order to • identify changes in the level of the price of securities • analyzing the profit and loss impact of big deformations • based on the historic scenario produce stress test for entire portfolio once correctly applied by the financial organizations in uzbekistan stress testing will become a powerful tool for monitoring the risk further ensuring management decisions making change within the appointed limits. however, lack of the experience of such modelling in financial organizations and lack of experienced risk management staff can become an obstacle in employing this powerful tool. 4.71 5.25 5.93 6.87 8.17 8.94 2.63 2.31 2.16 2.71 3.16 3.14 0.00 5.00 10.00 2013 2014 2015 2016 2017 2018q1 given loans and accepted deposits in foreign currency by uzbek commercial banks in billion usd loans in foreign currency foreign currency deposits http://cbu.uz/en/statistics/e-gdds/data/111578/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 110 www.americanjournal.org 5. japanese banks foreign exchange risk mitigation techniques. 5.1 mizuho financial group mizuho financial group possesses sophisticated risk management structure beginning with the risk management departments responsible for monitoring, assessing and managing the overall market risk of the group at middle offices and ending with risk management committees under board of directors responsible for determining basic matters pertaining to market risk management policies. in order to manage foreign exchange risk mizuho financial group sets limits that corresponds to the risk profiles of the companies. all the risk mitigating limits are discussed and coordinated by the risk management committee, discussed further by the executive management committee, then finally approved by the president & group ceo. risk management committee takes into account various factors including business strategies, historical limit usage ratios, risk–bearing capacity (profits, total capital and risk management systems), profit targets and the market liquidity of the products involved. 5.1.1 var method mizuho group employs company-wide market risk management departments. they monitor risks, submit reports and proposals relating to market risk management. reports are submitted on a daily basis and system of mutual checks and balances are conducted by independent middle offices. mizuho group uses var method, supplemented with stress testing as principal instrument to assess foreign exchange risk. the var method used by mizuho group is based on confidence interval of 99% with holding period of one day and historical observation period of one year. this method enables them the probability of 99% those losses will not exceed the preset limits. however when var calculations are not adequate middle office manages the risks using additional risk indices, carry out stress tests and set stop loss limits as needed. financial institutions in uzbekistan can fully adopt the var model however by nature var is statistical approach and requires using reliable past market data. financial institutions in uzbekistan should be very careful using var models as they are based on historical market data which in our case can be impossible to acquire. 5.1.2 interest sensitivity analysis mizuho group also conducts isa (interest sensitivity analysis) which is one of the main sources of market risk. interest rate sensitivity shows how much net present value varies when interest rates rise by 10 basis points. it explains the effect of interest rate on net present value. 5.1.3 back testing and stress testing to evaluate the var model mizuho group carries out back tests regularly with the var model loss and profit estimations. for the fiscal year ended in march 31, 2017 mizuho group had zero cases where losses exceeded var during the given period which means var model is reliable if there is accurate market data. financial institutions in uzbekistan may use this model later in their operations when there will be enough market data available for historical simulation. 5.1.4 market risk equivalent mizuho group has developed its own internal models based on var and stressed var to calculate the capital needs relating market risk (interest rate, foreign exchange rates) and separate models to calculate specific risks. however internal models are very sophisticated and requires a lot of research based on the activities and strategic development of the company, banks in uzbekistan may employ them in the near future to ensure capital adequacy levels specially related to specific type of risks. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 111 www.americanjournal.org 5.1.5 foreign exchange risk management consulting services provided by mizuho group to its clients mizuho group has the capability to provide local and international currency expertise to its clients and manage their foreign exchange risk exposure. mizuho group operates as a full service market maker providing strategic consultations, transaction executions and complicated research and data analysis. mizuho group provides hedges covering 50 currencies including spot and forwards as well as derivatives. 6. russian banks experience in currency risk management 6.1 sberbank’s currency risk mitigation methods as former soviet union country, russian banks experience in risk management is very valuable to refer to by banks in uzbekistan as we share common business environment. besides, having the experience of several currency crises, latest back in 2014, and russian banking system developed sound foreign exchange risk awareness and advanced currency risk management strategies. therefore looking at their way of development and learning from their experience is very valuable as we have similar problems and similar economic preconditions. below we will look at the currency risk mitigation methods used by the sberbank of russia. 6.1.1 authority and responsibility in risk management sberbank of russia utilize a very sophisticated risk management structure with a number of defense lines integrated into each unit of the bank. on top there is risk management committee which is responsible for in-depth review of risk management and preparing recommendations to supervisory board. under the executive border there are five separate risk management committees responsible for different risk groups including market risks committee. market risks committee is mainly in charge of foreign exchange risk and interest rate risk. at the bottom line risk management structure is divided into three defense lines. firs line of defense is risk acceptance where treasury and business units are mainly involved. second line of defense is risk management unit where different risks are assessed, evaluated and mitigated. third line of defense is internal audit unit where auditing of the risk management system is accomplished. compared to banks in uzbekistan where there is only one risk management department under the executive border responsible for all the types of risks at the same time. moreover no integration of risk management into the operational unit where risk exposure should be managed. besides this due to economic preconditions banks in uzbekistan have been ignoring the market risks particularly foreign exchange exposure, but at the current economic conditions foreign exchange exposure cannot be neglected. 6.1.2 methods used by sberbank of russia to manage currency risk similar to japanese banks sberbank of russia use the var method as the main risk assessment tool. var assesses maximum portfolio losses for a given time period with the probability of 99%. the currency risk management tool is the establishment of limits for separate portfolios. the limits are established on the four hierarchy levels, starting with the aggregate level and ending with the limits of the separate sub-portfolios or strategies. sberbank of russia for mitigating foreign exchange exposure mainly employs matching assets and liabilities denominated in foreign currency based on the maturity date, sector and volume. moreover, sberbank of russia uses currency hedges forwards, swaps and options in order to secure its future cash flows in foreign currency. unfortunately, banks in uzbekistan could not use the currency american journal of business management, economics and banking volume 12 may, 2023 p a g e | 112 www.americanjournal.org market to hedge its currency positions therefore banks should take the advantage of the method of matching assets and liabilities. conclusion foreign exchange exposure is a danger that cannot be ignored by any firm or company in any country. several ways of foreign exchange risk assessment, management and mitigation exist, however not all of them are suitable for companies and firms to be adopted at the same time depending on economic circumstances and market development. especially financial institutions like banks or crediting organizations are very vulnerable to foreign exchange exposure due to high amount of foreign currency assets and liabilities. to maintain low exchange rate exposure and successfully mitigate exchange risks it is of utmost importance for the banks to reorganize risk management staff and their structure in the bank units. nowadays, many banks in uzbekistan have risk management department within the head offices under the executive board. however, as in the case of japan’s mizuho group or russia sberbank there should be several risk management committees for special group of risks with responsibilities and course of actions predetermined. for example, market risk management committee will be responsible for: • integration of currency risk management into the business process of a credit institution in all levels, branches and spots; • establishment of standards for management of currency risks and strict compliance by all employees and divisions of the bank; • compliance of selected methods and instruments for minimizing foreign exchange risks; • non-stop monitoring, assessment and continuity of activities; • real time sufficiency of information in all branches and levels; • assessments; restrictions; control; having no access to currency market and options of currency hedges financial institutions should take full advantage of operational hedging by matching liabilities and assets as suggested by international financial institutions. currently banks poorly manage their assets and liabilities as seen in the (chart 5) which should be immediately improved. as banks have unlimited access to both depositing and crediting operation in foreign currencies banks must use this capability to reduce their currency exposure as much as possible. banks in uzbekistan should employ portfolio stress testing on a daily basis to identify up and bottom level of their losses. once correctly applied by the financial organizations in uzbekistan stress testing will become a powerful tool for monitoring the risk further ensuring management decisions making change within the appointed limits. therefore, highly qualified risk management staff should be employed who would be conducting the testing and sharing the results. development of it technologies, user-friendly software and real time online trading platforms should be developed by commercial bank. financial institutions should understand risk management is moving away from strong policies and strategies towards artificial intelligence technologies which could accomplish sophisticated calculations make necessary simulations and predict the future trend or accomplish necessary operations like buying or selling in a matter of seconds given the predetermined installations. financial institution in japan already developing such software and to catch up with them our banks should act immediately. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 113 www.americanjournal.org of course, without developed currency market where different swaps, options, forwards and future contracts are offered, foreign exchange risk management would never be complete. so that government should make it a priority to create a necessary precondition for the currency market development like we are observing in uzbekistan now. once organized well, not only financial institutions like banks or credit organizations could manage their currency exposure but also great number of export and import firms could get advantage of hedges, so that creating extra supply and demand for the market which in turn will help to identify real market value of the currencies. it is understandable that financial institutions in uzbekistan are willing to employ statistical tools for predicting probability of their losses in terms of normal market fluctuations like var for risk assessment. however, at the current state of the currency market var method would be highly inaccurate as it requires real historical data on exchange rates which is impossible to obtain. therefore, at the current stage var method would be inappropriate for risk assessment provided that uzbekistan lacks real market currency exchange rates. however, in the near future these methods could be used fully once the currency market begins to operate properly. references 1. allayannis, g., ihrig, j., & weston, j. (n.d.). exchange rate hedging: finacial vs. perational strategies. american economic review papers & proceedings, 91 (2), pp391-395. 2. allayannis, george, ofek, & eli. (2001). exchange rate exposure, hedging and the use of foreign currency derivatives. jounal of international money and finance, 20 (2001) 273-296. 3. barton, t. l., shenkir, w. g., & walker, p. l. (2002). making enterprise ris management pay off: how leading companies implement risk management. brookfield, connecticut: fei research foundation. 4. berisha, rrustem asllanaj, albulena shala ... positions of currencies movements. doi: 10.5901/ajis.2014.v3n2p371 5. european bank for reconstruction and development financial report 2010 6. h t t p : / / r r u . w o r l d b a n k . o r g / v i e w p o i n t / i n d e x . a s p 7. http://www.smfg.co.jp/english/company/organization/risk/ 8. https://2017.report-sberbank.ru/en/risk-report/risk-management-principles 9. https://www.cb.ru 10. https://www.cbu.uz 11. https://www.mizuho-fg.co.jp/investors/financial/sec/pdf/form_6-k_20160728.pdf 12. https://www.norgesbank.no/contentassets/3fba8b3a3432407d929ae9218db1ffc4/05_schenk_and_straumann2014. pdf 13. imf working paper on uzbekistan 2000 14. imf working paper on uzbekistan 2018 15. imf working paper on: exchange rate measurement and management: issues and approaches for firms michael papaioannou 2006 16. paul holden and sarah holden 2004 “foreign exchange risk and microfinance institutions” the enterprise research institute (eri) washington dc 17. philip g and timothy i. allocating exchange rate risk in private infrastructure projects 2003 world bank http://www.smfg.co.jp/english/company/organization/risk/ https://2017.report-sberbank.ru/en/risk-report/risk-management-principles https://www.cb.ru/ https://www.cbu.uz/ https://www.mizuho-fg.co.jp/investors/financial/sec/pdf/form_6-k_20160728.pdf https://www.norges-bank.no/contentassets/3fba8b3a3432407d929ae9218db1ffc4/05_schenk_and_straumann2014.pdf https://www.norges-bank.no/contentassets/3fba8b3a3432407d929ae9218db1ffc4/05_schenk_and_straumann2014.pdf https://www.norges-bank.no/contentassets/3fba8b3a3432407d929ae9218db1ffc4/05_schenk_and_straumann2014.pdf american journal of business management, economics and banking volume 12 may, 2023 p a g e | 114 www.americanjournal.org 18. saunders and , 2003 administración de riesgos 778 pages 19. tomoko matsukawa, robert sheppard and joseph wright “foreign exchange risk mitigation for power and water projects in developing countries” 2003 paper no:.9 20. unctad world investment report 2017 p-10. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 15 www.americanjournal.org lightweight concretes based on porous aggregates abdurahimov abdukarim abduhalimzoda teacher of termiz state university abduraximovabdukarim1996@gmail.com a b s t r a c t k e y w o r d s structural elements used in construction are required to serve for a long time, without losing their strength, integrity and serviceability under the influence of external forces without risk. the article envisages improving the properties of lightweight and fine-grained concrete and expanding its use in construction work. light, porous, filler, strong, artificial, expanded clay, agloparite, composition. literature review world scientists have conducted many studies on these matters: world scientists i.n. akhverdova, a.a. arelyana, g.a. bujevica, a.i. vaganova, g.i. gorchakova, yu.p. gorlova, v.g. dovjika, i.a. ivanova, s.m. iskovicha, i.a. korneva, yu.e. kornilovicha, a.a. kudryavseva, yu.d. nasievskovo, n.a. popova, i.e. putlyaeva, b.g. skramtaeva, m. z. simona, n. ya. spivaka, ya. sh. shteyna, m. p. elinzona, a. shorta, j. p. valsa conducted scientific work. physico-mechanical properties of artificial pore fillers and lightweight concrete were also studied by scientists of our country: l.m. botvina, b.a. askarov, k.a. akramov, u.a. gaziev, n.a. samigov, e.u. kosimov, a.a. tolaganov, s.a. khodjaev, m.k. tokhirov, kh.k. kamilov, t.t. shakirov and others are conducting scientific and practical work and developing innovative technologies. in the production of lightweight concrete, various pore fillers are used, including artificial ones expanded clay, agloporite, perlite, slag pumice, etc., and natural ones tuff, pumice, etc. lightweight concrete is mainly used to reduce the weight of walls and load-bearing structures. therefore, the density of these concretes is particularly important. depending on the density of concrete, ultra-light is divided into concrete with a density of 500-1800 kg/m3 and less than 500 kg/m3. the strength of lightweight concrete can be from 2.5 to 30 mpa and higher. light concretes are mainly divided into structural heat-retaining concretes with a density of 500-1400 kg/m3 and structural concretes with a density of 1400-1800 kg/m3. concretes are divided into compacted and ordinary types according to their elongation. they include ordinary concrete, in which the pores between the large aggregates of the cement mixture are filled with light or heavy sand, porous lightweight concrete, in which the pores of the cement mixture are filled with foam or other admixtures that generate gas, and lightweight concrete with large pores, american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 16 www.americanjournal.org without sand, the spaces between the grains are preserved. in construction, it is mainly used in lightweight concrete and fine-grained lightweight concrete with the size of large pore fillers of 20-40 mm[1]. research method. the strength of lightweight concrete depends on the cement-water ratio in the concrete, because it mainly determines the strength of the cement stone. but porous aggregates have less strength compared to cement mixture due to their structural characteristics. the inclusion of pore fillers in lightweight concrete reduces concrete strength depending on their quantity and density. the dependence of cement-water ratio on the strength of lightweight concrete can be seen in figure1. figure 1. dependence of strength of ordinary (1) and light (2, 3) concretes with porous filler on water-cement ratio. one of the main characteristics of lightweight concrete with porous fillers is that each large filler allows obtaining concretes with a certain strength. concrete that has reached this strength does not cause a significant increase in strength even when the strength of the mixture is increased later (fig. 1). r^f (rp ) dependence has two zones. in the first zone, an increase in the strength of the mixture leads to an increase in the strength of concrete, and here the effect of the cement-water ratio is manifested. increasing the strength of the mixture in the second zone does not lead to an increase in the strength of concrete. this is due to the weakness of the filler and the brittleness of the cement thin frame. further increasing the strength of the mixture will not be appropriate from an economic point of view. in order to obtain light concrete of different grades, the strength of the filler should be selected in such a way that the consumption of cement is used effectively, that is, it is suitable for the concrete of the first zone. it is possible to prepare concretes suitable for the density of the second zone only when there is a demand according to the specific characteristics of concrete. figure 2. effect of gravel and mixture strength with expanded clay on the strength of expanded clay concrete. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 17 www.americanjournal.org the strength of lightweight concrete is mainly affected by the content of large porous fillers or their concentration, and the amount of fillers in concrete, their strength, and the ratio of cement mixture to strength. in the case of a cement mixture, which usually has a relatively high strength, an increase in the amount of filler will reduce the strength of the concrete. the maximum strength of concrete depends on the optimal amount of filler when the cement mixture and concrete strength are the same. figure 2. the effect of the amount of light filler on the concrete strength f (r*kexpanded clay strength in the cylinder) [2]. when determining the composition of lightweight concrete with porous filler, attention is paid to all three characteristics of the effect of the filler on strength. therefore, the calculations are performed not with a specific formula or graph, but based on a series of table values and clarifying coefficients that take into account these characteristics. porous fillers also affect the deformation properties of lightweight concrete. as the deformability and amount of filler increases, the modulus of viscosity of concrete decreases. another of the main properties of lightweight concrete is their thermal conductivity, which, in turn, affects the resistance of barrier structures determines the thickness. as the density of concrete increases, the thermal conductivity of concrete increases (fig. 2.1). an increase in the amount of light fillers in the composition, a decrease in density leads to a decrease in the thermal conductivity of concrete, in particular, the thermal-physical properties are improved. is considered one of the qualities. lightweight aggregates have a significant water demand, they draw a certain amount of water from the cement mixture when they are included in the concrete mix. this process continues more intensively during the first 10-15 minutes when the concrete mixture is being prepared. here, the amount of water absorbed depends on the composition of the concrete mixture: in fluid and mobile concrete, the water-cement ratio is important, and this amount increases, and on the contrary, the amount decreases in thick concrete mixtures, where the water-cement ratio is less important. water consumption is increased in order to alternate the effect of water demand of pore fillers and to maintain the mobility of the concrete mixture. the degree of increase in the water demand of the concrete mixture depends on the amount of light fillers and their water demand: the more the amount of filler and the water demand, the more water consumption will be required to obtain a suitable, dynamic concrete mix. the water-requiring property of the pore filler has a significant effect on the water-retaining property of the concrete mixture, prevents stratification of cast and ready-mixed concrete, and also creates a basis for the use of mixtures with a high water-cement ratio. these properties are of great importance in the production of structural-heat-insulating lightweight concrete. porous fillers have more water exchange properties with cement paste than other dense fillers, so they affect the processes of its composition. at the first stage, the pore fillers absorb moisture and form a strong and tight bond in the layer between the cement stone and the fillers. in the second stage, due to the reduction of water, the porous aggregates begin to return the absorbed moisture, and the necessary conditions for hydration are created in the cement stone. due to the extreme unevenness of the surfaces of light aggregates, they adhere well to cement stone, and due to the deformability of the aggregate, negative conditions affecting the composition of cement, such as the settling of cement stone and the appearance of microcracks, are reduced. as a result, the cement stone in the lightweight concretes filling the pores will have the required density and homogeneity, and with this feature, it will be possible to use them in reinforced concrete structures and in some aggressive environments. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 18 www.americanjournal.org due to the fact that the surface of porous gravel and sand has an irregular shape, the intergranular spaces in the mixture increase. in order to fill these voids and insert cement paste between the grains, in order to obtain non-layering and easy-to-work concrete mixtures, 1.5-2 times more cement paste is used compared to ordinary concrete [3]. fillers with a lot of pores are treated with hydrophobizers or other substances that create a thin film on the surface of the particles, a thin inner layer, in order to reduce the water demand of the concrete mixture and reduce the consumption of cement, as well as to improve other quality levels of the concrete obtained on the basis of the porous fillers. however, since such measures increase the cost of concrete, they must be carried out on the basis of technical and economic calculations. in order to lighten the structure of buildings, it is to improve the composition of lightweight and heat-insulating concrete using lightweight fillers. references 1. аскаров.б.а.,ботвина.л.м.“пористые заполнители из местного сырья и легких бетона на их основе”. монография. ташкент.фан.1990г. 2. акрамов х. а., нуритдинов х. н. “бетонватемир бетонбуюмлариишлабчиқариштехнологияси” ўқувқўлланма, 1-2 қисм, тошкент 2007 3. махмудова.н. а. парзозлаш ва иссиклик изоляция материалларини технологик асослари, дарслик т. ўзбекистонфайласуфлари жамияти нашрюти.2013 4. abduraximov abdukarim abdukhalimzoda. (2021). the use of filler mixtures assessment of the current status. galaxy international interdisciplinary research journal, 9(12), 467–470. retrieved from https://internationaljournals.co.in/index.php/giirj/article/view/721 5. rakhimov sh.t, abdurahimov a.a, & khudoinazarova k.zh. (2022). economic efficiency and solving environmental problems in the republic of uzbekistan in the mining of minerals. zien journal of social sciences and humanities, 6, 117–118. retrieved from https://zienjournals.com/index.php/zjssh/article/view/1105 6. abdukhalimzoda, a. a. (2021). application of ash of heat power plants in mixtures. central asian journal of theoretical and applied science, 2(11), 1-6. retrieved from https://cajotas.centralasianstudies.org/index.php/cajotas/article/view/264 7. турапов ф. х., холтаева а. к. исследование влияния суперпластификаторов на физико-механические свойства бетона //проблемы геологии и освоения недр. – 2018. – с. 477-478. 8. abdumo'minov o. r. et al. effect of complex additional and flying ash on cement properties //galaxy international interdisciplinary research journal. – 2021. – т. 9. – №. 12. – с. 654-658. 9. khursanovich t. f. dry construction mixed for foam concrete //academicia globe: inderscience research. – 2022. – т. 3. – №. 05. – с. 201-204. 10. t. f., orologli n. i. the study of physical and mechanical properties of construction gypsum and its study on the construction //academicia: an international multidisciplinary research journal. – 2020. – т. 10. – №. 5. – с. 1990-1995. https://internationaljournals.co.in/index.php/giirj/article/view/721 https://zienjournals.com/index.php/zjssh/article/view/1105 https://cajotas.centralasianstudies.org/index.php/cajotas/article/view/264 american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 48 www.americanjournal.org priority directions and prospects for ensuring the stability of the state budget aliyev ma’ruf komiljon o’g’li faculty of finance at the qarshi institute of engineering and economics a b s t r a c t k e y w o r d s the article identifies the concepts of budget stability and its main indicators and assesses the stability of the budget system. debt stability is based on the fact that contraception provides conditions for fiscal policy viewed as an important yelement of fiscal stability and that fiscal stability does not eat into the amount of debt, but depends on institutions of the budget system and public administration in general. state budget, stability, priority directions, budget system. the budget system is a component of the country's budget structure and represents a certain part of it. in that sense, the budget system consists of a mutual collection of interconnected parts of the budget. (buresh & bikbergeneva, 2010) jehovah's witnesses would be pleased to discuss these answers with you. it or this country's budget system can be two or three-jointed. (novoskolseva, yu, 2016) jehovah's witnesses would be pleased to discuss these answers with you. today, the global crisis caused by the pandemic has a negative impact on the budgets of almost all countries. over the next months, the coronavirus and the quarantine of millions of people have disrupted the world economy. economists believe that this degraded family could experience an unprecedented decline in the newest historyof mankind . to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. therefore, it will be important to take the system of state budget management to a new phase and strengthen budget discipline, improve the transparency of the budget system, improve the efficiency and efficiency of the use of state budget funds of the republic of uzbekistan, and introduce innovative methods of planning government budgets for the medium term. mavzuga oid adabiyotlar tahlili each country's budget system relies on certain principles. such principles may include: budjet tizimining yagonaligi; limited income and expenses among the levels of the budget system; the independence of budgets; a full reflection of the budgets, budgets of the state's extrabudgetary savings; budjetlarning balansliligi; american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 49 www.americanjournal.org efficiency and transparency of the use of budget funds; budjet xarajatlarini qoplashning umumiyligi; oshkoralik; budjetning haqqoniyligi; the addressability and targeted nature of budget funds. the principle of the uniqueness of the budget system is determined by the uniqueness of legal frameworks, the monetary system, forms of budget documents, the principles of the budget process (hertz, 1979), the uniqueness of sanctions for violating budgetary law, the financing of budget expenses at all levels of the country's budget system, and the uniqueness of the order in which budget funds are accounted for (shaturaev & jumaev, 2019). the principle of limited revenues and expenses between the levels of the budget system envisages the corresponding types of income (full or partial) and the attachment of responsibilities for the implementation of expenses to the country's authorities, the authorities of the country's entities, and local self-government bodies (novoskolseva, yu y., 2016)(jensen & smith, jr., 2005). (jensen & smith, jr., 2005) jehovah's witnesses would be pleased to discuss these answers with you. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. legally integrate the right of their bodies to independently determine the direction of expenditure of relevant budget expenses in accordance with the law, the additional income received in the implementation of laws on the budget, the inability to receive economized sums in accordance with the expenses of the budget, the losses in revenues generated in the implementation of budget laws, prohibits the failure to compensate for additional expenses at other levels of the budget system (except in cases arising depending on changes in legislation) (jensen & smith, jr., 2005)(stamalevi, 2015). normative and legal basis of the study in particular, for more information, please contact the treasurer's office by writing to the address noted above or by telephoning (718) 560 7500. in accordance with the decision "on measures to ensure stability and timely financing of the first activities." adoption of the law serves the purposes of ensuring the stability of the state budget of the republic of uzbekistan during the coronavirus pandemic and the global crisis and optimization of costs, taking into account priority areas. according to it, as a result of the establishment of the anti-crisis fund, changes have been made to the limited amount of funds allocated from the regional budget, and article 5 of the law is being amended in a new edition. in addition, in accordance with the decisions of our country's administrator, there was a need for administrative changes in the structure of some governmental authorities, as well as other changes in the implementation of the annual budget act for the first time. in accordance with the decision of our president, appropriate measures are also set out to reduce spending from regional and local budgets, and the legal basis for their implementation is set out in the law. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 50 www.americanjournal.org through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. the law does not optimize budget spending in order to ensure the stability of the state budget during the coronavirus pandemic and the global crisis, and provides for the mobilization of priority areas, namely, the first measures to combat the cornovirus pandemic and mitigate its negative impact on socio-economic networks. methodological foundations of the study bank accounts: bank accounts, certificates of deposit, or individual retirement accounts set up as a trust or made payable on death to an entity used by jehovah's witnesses in accord with local bank requirements. all public and local expenses are funded by the budgets reflected in the country's budget system and funds from the state's extrabudgling funds. delays and deadline changes to pay tax credits, taxes and other mandatory payments are fully taken into account in terms of revenue and expenses of budgets and budgets of state extrabudgetary funds. the principle of balance sheet of budgets means that the amount of expenses provided for in the budget must be equal to the total amount of revenues from budget revenues and sources of financing its deficit. in the process of drafting, approving and executing a budget, competent authorities must arise from the need to minimize the amount of budget deficits. this is the meaning of the principle of efficiency and transparency in the use of budget funds, to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. 2020). the general principle of covering budget expenses means that all its expenses must be covered by the total amount of all revenues of this budget and the proceeds from sources of financing its deficit. bank accounts: bank accounts, certificates of deposit, or individual retirement accounts set up as a trust or made payable on death to an entity used by jehovah's witnesses in accord with local bank requirements. the principle of openness in the budget system has been approved in the open press, of course, the announcement of reports on the budget and its implementation, the complete and correct issuance of information in the process of budget execution, the ability to obtain other information on the decisions of state authorities and local self-government bodies, the procedure for reviewing and adopting decisions on the budget project (r.karlianova, 2021) provides for albatta, open to society and the media (including within the legislative body of state power or on issues that represent conflicts between legislative and executive bodies of state power). in turn, the budget of the republic of karakalpakstan includes the regional budget of the republic of karakalpakstan and the budgets of districts and cities subject to that republic. (deut. 2017) jehovah's witnesses would be pleased to discuss these answers with you. the budget of cities divided intocities also includes city budgets and municipal budgets that are part of the city. finally, the district's budget, which has cities subject to the district, consists of the district budget and the budgets of municipal subordinate cities. classification of state budgets the revenues and expenditures of the state budget are diverse according to their sources, the intended and other characteristics of certain purposes. at once they also have common signs. nationwide, they are classified to ensure that budget revenues and expenses are properly planned american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 51 www.americanjournal.org and taken into account. budget classification plays an important role in the allocation or grouping of budget revenues and expenses included in the state budget structure, as well as sources for financing its shortage. it is used to bring budget data into a single system for the purpose of establishing, reviewing, accepting and executing state budgets, and budget classification ensures that budget data is compared with the same data of international classification systems. in this sense, the scientific-based economic grouping of budget revenues (encrypted) budget revenues and expenses brought to a particular system and encrypted in a systematic manner is called a budget classification. as a rule, based on budget classification lies their sources in income, and targeted spending of funds on expenses lies. budget classification is unique in its broader direction. in strict compliance with its divisions, budget planning is carried out, individual and general and collective networking estimates of budget organizations are established, and local, republican, and state budgets are developed. summary fiscal stability reflects such a mechanism of budgetary activity. systems that do not currently doubt success to achieve goals are future goals. this contraceliation requires fiscal policy, and its prerequisite is the debt stability of the area. however, financial stability depends not on the amount of debt, but on the institutions of its maintenance the stability and structure of the tax burden, the composition of expenses and their relationship with macroeconomics, the state of budgetary relations and the acuuracy of regional budgetary powers. available literature 1. g.bekimbetova. (2019). general methods of analysis in decision-making and selection efficiency of investment projects. bulletin of science and practice. https://doi.org/10.33619/2414-2948/40/36 2. g.m.bekimbetova. (2020). evaluation of the efficiency of investment projects by the method of the cobb douglas derivative function. eurasianunionscientists. https://doi.org/10.31618/esu.2413-9335.2020.1.74.729 3. hertz, d. b. (1979). risk analysis in capital investment need for new concept. harvard business review, 1979(september). https://hbr.org/1979/09/risk-analysis-in-capital-investment 4. jensen, m. c., & smith, jr., c. w. (2005). the theory of corporate finance: a historical overview. ssrn electronic journal. https://doi.org/10.2139/ssrn.244161 5. r.karlibaeva. (2021). theory of finance and financing strategies. international journal of advanced research. https://doi.org/10.21474/ijar01/12480 6. shaturaev, j. n., & jumaev, h. s. (2019). small business, innovation and entrepreneurship. international journal of advanced research, 7(11), 303–307. https://doi.org/10.21474/ijar01/10008 7. stamalevi, j. (2015). the importance of payback method in capital budgeting decisions article by jones stamalevi. south american journal of management, 1(2), 1–6. 8. bekimbetova g.m., sh. j. n. (2021). osnovnoy pokazatel effektivnosti investitsionnix proyektov raschet chistoy tekushey stoimosti. 3(77), 6. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 52 www.americanjournal.org 9. buresh, o., & bikbergeneva, d. (2010). regionalniy aspekt developya sistemi upravleniya gosudarstvennoy sobstvennostyu. vestnik orenburgskogo gosudarstvennogo universiteta, 8(13 (119)), 19-23. 10. v.m. galperin, s.m. ignatyev, v. i. m. (2007). “mikroekonomika.” book, 426. https://gain.fas.usda.gov/recent gain publications/agricultural biotechnology annual_ottawa_canada_11-202018.pdf%0ahttps://doi.org/10.1016/j.resourpol.2020.101869%0ahttp://dx.doi.org/10.1016/j.j envman.2017.06.039%0ahttp://www.oecd.org/gov/regulatory-poli 11. mirziyoyev, o. r. p. sh. (2017). the cabinet of ministers of the republic of uzbekistan shavkat mirziyoyev has expanded the cabinet of ministers on the main conclusions of socioeconomic development of our country in 2016 and the most important priorities of the economic program for 2017. 2. 12. novoskolseva, yu y., sh. n. k. (2016). metodicheskiye aspect kompleksnoy otsenki effektivnosti investitsionnix proyektov. voprosi upravleniya, 273–278. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 43 www.americanjournal.org the impact of the computerized accounting system on the performance of internal auditing and financial reports (a study on a sample of commercial banks listed on the iraq stock exchange) fraq abdulaal mhalhal baghdad education, the third rusafa/ministry of education https://orcid.org/0000-0002-1187-5457 email:firakalkaghani@gmail.com hazem ali muttair college of administration and economics, university of sumer, iraq https://orcid.org/0000-0002-0158-9860 email: lhazm2700@gmail.com nawar ali makttoof college of administration and economics, university of sumer, iraq email:nawarali@yahoo.com a b s t r a c t k e y w o r d s the research aims to identify the efficiency and effectiveness of internal auditing and financial reports in light of the use of the computerized accounting system through studying, analyzing and examining the lists and financial reports prepared under a computerized accounting system that is not paper-based by the professionally recognized rules, principles and accounting principles in order to ensure the validity of the results of the activity prepared under to the accounting standards approved by the accountant and to ensure the validity of the results according to the tax return submitted by the taxpayers, the research has reached several conclusions. first, accurately calculating the amount of tax due to taxpayers, and the most critical recommendations were the need to highlight the importance of using computerized accounting systems to raise the efficiency and effectiveness of internal auditing and financial reports by activating them in the banking sector that practices the profession of internal auditing and financial reports. internal audit, internal audit efficiency, financial reports, computerized accounting system american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 44 www.americanjournal.org 1-introduction: due to the rapid development in the field of information technology and the simultaneous emergence of computers and remote operating stations in the form of terminal computers and a direct operating system with immediate time, and also after the widespread use of the international information network, "the internet", as it has become used in most areas of life in the form of programs that are usually easy it leads to more accurate, more accessible and faster results in completing the work to be done. this has positively affected all areas in which it was used, including the auditing and reporting process, which led to continuous improvement in the financial reporting process after increasing flexibility in the use of those systems and the ability to collect and operating non-financial financial data to serve the beneficiaries of the internal audit and financial reports department . it can be said that the accounting system has been dramatically affected by the use of the computer, and this influence is not limited to the methods and procedures used in implementing the accounting cycle and the associated documents, records, reports and financial statements. records, documents and methods of preparing them to require auditors to consider the impact of using the computerized accounting system in examining the information contained in the financial statements. 2 research methodology 2-1research problem the use of information technology leads to raising the efficiency and capacity of the accounting system in processing data and obtaining accounting information characterized by objectivity and appropriateness, so any improvement or weakness in the ability of the accounting system to produce reliable information will be reflected in the accounting work. in addition, the use of information technology in the accounting field affects the work of users of the accounting system. however, this use faces some obstacles and problems, including the cost versus benefit, how to measure it, and the extent to which the elements of using the computerized accounting system can be provided in private commercial banks as one of the users of the computerized accounting system. accordingly, the research problem can be formulated from the following question: what is the efficiency of internal auditing and financial reports in light of using the computerized accounting system when auditing and examining the financial statements attached to the financial reports? 2-2 the importance of research the research's importance stems from the computerized accounting system's role in raising the efficiency and effectiveness of internal auditing and financial reports in commercial banks when checking and examining the attached financial statements and reports for decision-making. 2-3research objectives the research seeks to achieve the following goals : 1) shedding light on identifying the efficiency and effectiveness of the internal audit process and financial reports in commercial banks in light of the use of a computerized accounting system . 2) identifying the viewpoint of the accountant and the auditor on the computerized accounting system and its impact on the quality of internal auditing and financial reports . 3) to identify the characteristics that must be available in the computerized accounting system to be an effective system that can be relied upon by internal auditing and financial reports . american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 45 www.americanjournal.org 2-4research hypotheses. the research seeks to test the following hypothesis: there is a significant effect of the computerized accounting system on the efficiency of internal auditing and financial reports. 2-5data collection method and research sample : to achieve the objectives of the research and test its hypotheses, the research adopted the descriptive and analytical approach, and the following sources were used to collect data: 1the theoretical side : in the theoretical aspect, the research relied on references from books, periodicals, theses and university dissertations. 2-the practical side : the research sample consists of (estimators and auditors in the general tax authority). a questionnaire was designed and distributed (45) questionnaires to test the research hypothesis. as a result, the number of forms received by the researchers was(41) a valid form for analysis, which is equivalent to a response rate of (91%), and the collected data were analyzed by means of the questionnaire using descriptive and analytical statistical methods, and using the statistical analysis program (spss). 3-computerized accounting system 3-1 the concept of a computerized accounting system: due to the successive developments that have taken place in many fields and organizations in terms of their large size and expansion of their activities, and the consequent production of a huge amount of different data, the need arose to use the electronic computer in order to be able to operate the data and produce information in order to benefit from the enormous and multiple capabilities that characterize it. those electronic computers, and because of the importance of the computer in the work of accounting information systems, the existence of an information system at present is often linked to the existence of the electronic computer (al tatar, 21: 2015) and through the definition of the american information systems association for information systems, computerized accounting information systems can be defined as " a computerized system that specialists prepare to collect, organize, communicate and display accounting information for use by decision-makers in the areas of planning, control and activities carried out by economic units. (dahman18: 2012) it is defined as "a set of overlapping components and standard procedures that work together to collect, store, distribute, disseminate and retrieve information needed by the organization in order to support operations, management, collaboration, analysis, visualization and control within the organization" (laudon, 2008). 2characteristics of the computerized accounting system: this system is characterized by several characteristics, including (al-dayah, 2009). • accuracy and speed in processing financial data when converting them into accounting information. • providing the necessary accounting information to the administration to perform its various functions. • providing information that contributes to controlling and evaluating the economical establishment's activities. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 46 www.americanjournal.org • provide a database that can be referred to when needed. • it is characterized by sufficient flexibility and ease of updating and developing it to suit the changes occurring in the unit. 4internal audit and financial reports 4-1the concept of internal audit: there have been many definitions that dealt with the concept of internal audit due to the multiplicity of parties and the varying levels of their awareness and evaluation of the quality of internal audit, as some points of view were adopted in defining the efficiency of internal audit in terms of its relationship to the extent of auditors' commitment to carrying out their operations by internal audit standards and the rules of professional ethics, (source, 42: 2013), and among these definitions that dealt with the efficiency of internal auditing are: defined as "an independent, objective activity that aims to perform assurance services and various advisory activities and was found to improve and add value to the operations in the organization and help it achieve its goals. (hanan, 2015: 30). the internal audit "is the organized process concerned with monitoring and controlling operations within organizations through a comprehensive and periodic review by a specialized department called the internal audit department." (source, 2013: 42). an internal auditor is a person working within the organization's internal audit department who performs internal audits and bears responsibility for them. as the internal audit is a type of administrative discipline that was developed from an activity focused mainly on financial and accounting matters until it reached the complete operational levels, the american institute of internal auditors promoted the profession of the certified internal auditor and made it professional and developed and created systems, rules and instructions and set international standards (standards) to adjust audit and internal auditors. the scope of an internal audit includes examining and evaluating the adequacy and effectiveness of the organization's internal control systems and the performance quality when performing various activities. (khudair, abdul razzaq, 612: 2017). there have been many definitions that dealt with the concept of internal audit due to the multiplicity of parties and the varying levels of their awareness and evaluation of the quality of internal audit, as some points of view were adopted in defining the efficiency of internal audit in terms of its relationship to the extent of auditors' commitment to carrying out their operations by internal audit standards and the rules of professional ethics, (source, 42: 2013), and among these definitions that dealt with the efficiency of internal auditing are: defined as "an independent, objective activity that aims to perform assurance services and various advisory activities and was found to improve and add value to operations in the organization and help it achieve its goals. : 2015). the internal audit "is the organized process concerned with monitoring and controlling operations within organizations through a comprehensive and periodic review by a specialized department called the internal audit department." (source, 2013: 42) an internal auditor is a person working within the organization's internal audit department who performs internal audits and bears responsibility for them. as the internal audit is a type of administrative discipline that was developed from an activity focused mainly on financial and american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 47 www.americanjournal.org accounting matters until it reached the complete operational levels, the american institute of internal auditors promoted the profession of the certified internal auditor and made it professional and developed and created systems, rules and instructions and set international standards (standards) to adjust audit and internal auditors. the scope of an internal audit includes examining and evaluating the adequacy and effectiveness of the organization's internal control systems and the performance quality when performing various activities. (khudair, abdul razzaq, 612: 2017). 4-2objectives of internal control systems • ensure the integrity and accuracy of information and data. • checking the conformity of policies, plans, procedures, laws, instructions and contracts. • protection of assets and economic and efficient use of resources. • accomplishment and achievement of objectives set for operations, activities or programmes. • monitoring the departments and their working mechanism and ensuring that no error prevents fraud. • obtaining strong evidence to match the financial statements prepared by the institution. 4-3types of internal auditing • financial audit: analysis of the organization's economic activities measured by accounting reports. environmental audit. • administrative audit: monitoring all departments of the facility and ensuring that the individuals carry out the work entrusted to them to the fullest and in accordance with the facility's objectives. • operational audit: an audit that examines whether the main operational businesses within the organization effectively achieve their objectives and are operating efficiently and economically. 4-4concept and definition of reports financial reports are considered the beating heart of the work of any company, regardless of its type and target market, as it is difficult for companies to organize their financial management and control their commercial activities without resorting to financial reports. the concept of "financial reports" is defined as the administrative tool used to communicate critical financial information to internal and external stakeholders by covering every aspect of the financial aspects through key performance indicators related to these aspects. (the bishops, 20: 2013) 5-4 objectives of financial reports there are many objectives of financial reports to include different aspects of the company's work at all levels. however, there is a set of goals common to all companies in their various fields of work. when preparing a financial report for a company, the most important objectives of financial reports appear as follows: (al-jajjawi and al-anbaki, 2013: 129). •presentation of the financial situation to investors and stakeholders: the financial reports provide a brief overview of the actual financial performance of the company, help in tracking the flow of funds until the moment of preparing the report, and encourage investors to invest their money within the company if they find that the project is suitable for their investment needs . •compliance with tax laws: the periodic financial reports required by the authorities responsible for taxes in the country where the company operates help to submit the company's tax return, as tax american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 48 www.americanjournal.org agents will use the financial reports submitted to confirm the payment due on the company. the higher the quality of the financial reports provided, the more the company can reduce the tax cost and avoid discrepancies in the numbers •tracking financial performance: financial reports help decision-makers to make appropriate decisions for the company and draw appropriate strategies in addition to studying investment opportunities and forecasting the advantages and disadvantages of those investments by tracking the company's financial performance . •reducing the rate of errors: the company may face a range of legal problems and damages to the company's profitability if inaccurate financial reports are prepared. accurate financial reporting provides continuous monitoring of funds in all aspects of the company and reduces errors so that they are not the cause of more significant problems. •debt management: errors in financial reports prepared according to a specific business model lead to problems in managing the debts incurred by the company. financial reports, especially accounting reports, must be used to regulate debts by preparing a detailed balance sheet of assets and liabilities. 6-4 what is the difference between financial statements and financial reports ? given the importance of making financial statements in addition to financial reports in the work of companies, it is necessary to clarify the difference between financial statements and financial reports. financial reports aim to present data that has financial implications, as it helps stakeholders inside and outside the organization in making their decisions. it also contains financial and non-financial data. while the financial statements are formed during regular periods or as needed in some lists, and the data is general and not directed to specific persons. (hammadi, 55: 201) . 5-the analytical side 5-1 the psychometric characteristics of the questionnaire include verification of the following: the correlation coefficient was calculated between the score of each paragraph and the total score for each dimension of the scale . on this basis, the following tables were created to measure the coefficient of internal consistency, as follows: the correlation coefficient between the paragraph and the total score of the axis(0.00) number 77.3**% 1 77.4**% 2 80.5**% 3 86.2**% 4 78.7** % 5 78.8**% 6 86.2** % 7 89.3**% 8 89.3**% 9 87.3**% 10 83.0**% 11 87.8**% 12 82.2**% 13 79.5**% 14 86.3**% 15 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 49 www.americanjournal.org where it is noted from the previous table that the correlations were all significant and high, and this indicates that the sincerity of the internal consistency characterizes the paragraphs of the questionnaire . to ensure the discriminative validity of the questionnaire, the two extreme groups method was used by choosing (27%) for the upper group and (27%) for the lower group of the sample size and using the t-test for two independent samples, the following was found: the test values t moral level trust limits values 18.708 ** 0.00 minimum rate the highest rate -.96939 -0.78158 it is noted from the above table that the value of the test is significant under the level of 1%, and this means rejecting the null hypothesis that there are no significant differences between the answers of the lower and upper group, meaning that the scale is characterized by the existence of a discriminatory difference between the two groups, and what this test confirms is that the limits of confidence are negative, which means zero does not fall between the two negatives, i.e. rejecting the null hypothesis. 5-2the stability of the study model: reliability is affected by the variation arising from choosing a test or measure that does not measure with a high degree the phenomenon to be measured (honesty). kirkendall presented criteria for judging the quality of the reliability coefficients, as shown in the following table: table (1) shows the estimation of stability coefficients for (kair kendall) stability coefficient appreciation 0.90-1 excellent 0.80-0.89 high 0.60-0.79 average 0.59 0.00 weak 5-3-measuring the stability coefficient using alpha cro nabach: the alpha crowe nabach method was used to measure the stability coefficient for the overall model, and the result was as follows: table (2) reliability statistics cronbach's alpha n of items .925 28 it is noted from table (2) above that the value of alpha cro nabach for the scale as a whole amounted to (92.5%), which is a high value that indicates the stability of the scale. from this standpoint, it has been proven that the model is characterized by stability. studying the direction of the respondents' opinions of the questionnaire paragraphs in this section, the direction of the respondents' opinions was studied based on the weighted arithmetic mean of the following paragraphs: american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 50 www.americanjournal.org 1the general direction of paragraph "1" the following table shows the general trend of paragraph "1" and some other indicators, such as the standard deviation, as the weighted average value was (2.1145). weighted average standard deviation direction 2.1145 0.82224 yes 2the general direction of paragraph "2 " the following table shows the general trend of paragraph "2" and some other indicators, such as the standard deviation, as the value of the weighted average was (4.5444). weighted average standard deviation direction 4.544 0.01320 yes 3the general direction of paragraph "3 " the following table shows the general trend of paragraph "3" and some other indicators, such as the standard deviation, as the value of the weighted average was (1.64). weighted average standard deviation direction 1.64 0.970 yes 4the general direction of paragraph "4 " the following table shows the general trend of paragraph "4" and some other indicators, such as the standard deviation, as the value of the weighted average was (2). weighted average standard deviation direction 2 0.595 yes 5 the general direction of paragraph "5 " the following table shows the general trend of paragraph "5" and some other indicators, such as the standard deviation, as the value of the weighted average reached (2.3346), which means that the general trend of this paragraph is directed towards yes. weighted average standard deviation direction 2.3346 0.47205 yes 6-the general direction of paragraph "6 " the following table shows the general trend of paragraph "6" and some other indicators, such as the standard deviation, as the value of the weighted average was (2.2145). weighted average standard deviation direction 2.2145 0.83443 yes american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 51 www.americanjournal.org 7 -the general direction of paragraph "7 " the following table shows the general trend of paragraph "7" and some other indicators, such as the standard deviation, as the value of the weighted average was (3.5344). weighted average standard deviation direction 3.5344 0.01302 yes 8 -the general direction of paragraph "8" the following table shows the general trend of paragraph "8" and some other indicators, such as the standard deviation, as the value of the weighted average was (2.64). weighted average standard deviation direction 2.64 0.870 yes 9-the general direction of paragraph "9 " the following table shows the general trend of paragraph "9" and some other indicators, such as the standard deviation, as the value of the weighted average was (2.56). 10 -the general direction of paragraph "10 " the following table shows the general trend of paragraph "10" and some other indicators, such as the standard deviation, as the value of the weighted average was (2.3446), which means that the general trend of this paragraph is directed towards yes. weighted average standard deviation direction 2.3446 0.47206 yes 11 -the general direction of paragraph "11 " the following table shows the general trend of paragraph "11" and some other indicators, such as the standard deviation, as the value of the weighted average was (2.2345). weighted average standard deviation direction 3.2345 0.82242 yes 12 -the general direction of paragraph "12 " the following table shows the general trend of paragraph "12" and some other indicators, such as the standard deviation, as the value of the weighted average was (4.3324). weighted average standard deviation direction 4.3324 0.01302 yes 13 -the general direction of paragraph "13 " the following table shows the general trend of paragraph "13" and some other indicators, such as the standard deviation, as the value of the weighted average was (3.64). weighted average standard deviation direction 3.64 0.970 yes american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 52 www.americanjournal.org 14 -the general direction of paragraph "14 " the following table shows the general trend of paragraph "14" and some other indicators, such as the standard deviation, as the value of the weighted average was (3). weighted average standard deviation direction 3 0.597 yes 15 -the general direction of paragraph "15 " the following table shows the general trend of paragraph "15" and some other indicators, such as the standard deviation, as the value of the weighted average reached (3.3346), which means that the general trend for this paragraph is directed towards yes. weighted average standard deviation direction 3.3346 0.47206 yes schedule( 4) the results of the analysis of variance for the regression (analysis of variances) (dependent variable = efficiency of an internal tax audit) sample sum of squares degrees of freedom mean of squares the calculated f value f level of significance determination coefficient ²r 1 regression 5,517 1 5,517 7,6002622 ,0030 ,870 2 remaining error 34,843 48 0.72589 3 total 40,361 49 (source: prepared by the researcher based on the results of spss) table (4) shows the results of a simple regression analysis to test the impact of independent variables on the efficiency of internal auditing and financial reporting . the regression is significant because the calculated value of the f-test of 0030 is less than the 5% significance level. the value of the determination coefficient was 870, which means that the computerized accounting system interprets 870 changes in the efficiency of internal auditing and financial reports. schedule( 5) the results of the multiple regression analysis for a test of the effect of the independent variable on the efficiency of internal auditing and financial reporting sample atypical transactions t value calculated level indication b standard error constant 1,208 ,252 30,18118 ,000 computerized accounting system ,996 ,033 ,000 source: prepared by the researcher based on the results of spss table (5) notes that the computerized accounting system significantly impacts the efficiency of internal auditing and financial reporting, since the probability value of the t-test of 000 is less than the 5% significance . american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 53 www.americanjournal.org that is, the increase in the level of the computerized accounting system by 100% leads to an increase in the level of efficiency of internal auditing and financial reports by 0.996, and this shows the extent of the impact of the computerized accounting system on the efficiency of internal auditing and financial reports, which is applied by the private banking sector, which leads to the implementation of many reporting procedures finance with high accuracy and as soon as possible, which results in no delay in completing transactions. conclusions and recommendations 7-1conclusions: 1) the use of a computerized accounting system contributes to simplifying internal audit procedures and financial reports through the implementation of many financial reporting procedures with high accuracy and the fastest time to complete transactions, providing more reliable information. 2) the use of the computerized accounting system contributes to raising the efficiency and effectiveness of internal auditing and financial reports by providing a set of control measures on programs and files, increasing the ability to analyze and compare, increasing the ability to perform complex calculations, reducing the commission of errors in the internal audit process, and eliminating many problems, whether whether it is financial or administrative. 3) using the computerized accounting system in internal auditing and financial reports contributes to the preservation of available data and information and the ease of retrieval, which leads to easy access to the necessary data when needed. 7-2 recommendations : 1the need to highlight the importance of using computerized accounting systems in raising the efficiency and effectiveness of internal auditing and financial reports by activating them in private commercial banks, as they practice the profession of internal auditing and financial reports. 2the need to use the computerized accounting system for its role in raising the efficiency and effectiveness of internal auditing and financial reports by implementing many financial reporting procedures with high accuracy and the fastest time in completing transactions and increasing the ability to make analyzes and comparisons and store a vast amount of information and results. 3the need to focus on holding highly technical and training courses in the banking sector for auditors working in internal auditing and financial reports on the use of the computerized accounting system to raise professional competence. sources and references 1. metropolitans, ghassan falah, (2013), (introduction to contemporary auditing, first edition, zamzam publishers and distributors. 2. al-kaabi, jabbar muhammad ali, (2008), (tax legislation, income tax, real estate tax, property tax), second edition, dar al-sajjad for printing, baghdad. 3. al-jajjawi, talal muhammad ali, al-anbaki, (2013), (accounting and tax accounting), al-kitab press, baghdad . 4. al-dasiti, muhammad, al-hajjaj, ahmed hamed, (2009), (review, integrated entrance), mars publishing house, amman. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 54 www.americanjournal.org 5. atta, muhammad hamed, (2002), (financial reports in knowledge and practice), first edition, dar wael for publishing, amman. 6. al-daya, munther yahya, (2009) "the impact of using accounting information systems on the quality of financial data in the services sector in the gaza strip (field study)", master thesis, islamic university library. 7. the source, murshid eid (2013), (the impact of the risks of the internal audit profession on the quality of internal audit), a master's thesis, the islamic university, faculty of commerce, gaza . 8. al-tatter, muhammad mansour, (2015), (the role of computerized accounting information systems on the outputs of the cooperative accounting system), master's thesis, islamic university, gaza . 9. khudair, bushra fadel, abdel-razzaq, ammar louay (2017), (the effect of the auditor's experience on the quality of internal auditing), university of baghdad, college of administration and economics, journal of economic and administrative sciences, volume (23), number (100 .) 10. hanan, belkhadem, (2015), (the impact of internal audit quality on corporate governance), master thesis, faculty of economic and commercial sciences, mohamed khedir university, algeria . 11. hammadi, salih mahdi, (2015), (the role of accounting disclosure requirements in financial reports in improving financial reports), higher diploma research, university of baghdad. 12. dahman, osama kamal, (2012), (the effectiveness of computerized accounting information systems in achieving the quality of financial reports), master's thesis, islamic university library . 13. aliwi, zahra hussein, (2011), (integration of the role of internal and external auditing for the success of the self-assessment method), journal of economic and administrative sciences, university of baghdad, volume (17) number (62). 14. laudon, k. c. &laudon, j.p.(2008)." management information systems managing the digital firm "(9theed). upper saddle river.new jersey: pearson education. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 38 www.americanjournal.org current issues of digitization of transformational processes in commercial banks suyunov d. x. id, prof., head of the department of higher school of business and entrepreneurship kaytavov v. r. phd student of higher school of business and entrepreneurship a b s t r a c t k e y w o r d s the article analyzes the role of digitization in the transformation of commercial banking activities, the importance, current state and prospects of remote use of banking services. the article also shows the importance and convenience of digitizing the banking sector, the work that should be carried out in this direction uzbekistan. banking, digitization, transformation, digital banking, traditional banking, ecosystem, it, online platform. introduction commercial banks are the main link in the economy, constantly ensuring the growth of the economy by taking free money from one subject and placing it as a financial asset in another. the need of bank customers to remotely use modern banking services is increasing day by day, which encourages the widespread use of digital technologies in banking activities, the integration of its database with the database of state bodies and utilities, as well as other organizations. the decree of the president of the republic of uzbekistan "on the development strategy of new uzbekistan for 2022-2026" no. pf-60 stipulates that "to complete the transformation of the banking system by the end of 2026, to increase the share of private banks to 60% of total bank assets in 2025"[1], in this regard, the banking system has to perform a number of tasks. therefore, it is one of the urgent issues to deeply analyze and clarify the meaning and essence of the concept of digitalization of banking activities. digitization of banking activities is the main driver of the development of the banking system and increases mutual trust and transparency between the bank and the client. thematic literature analysis the word "digitalization" is actually a new term, which refers to the widespread use of information technology in all systems, from electronic payments to remote banking services and e-government, as a result of the introduction and effective use of it programs in management and administration [2]. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 39 www.americanjournal.org during the development of information technologies in the world, the term digital economy appeared, and this term was first used by the canadian scientist don tapscott in the book "electronic digital society: advantages and disadvantages of the network age" in 1995. in his opinion, the main factor in the digital transformation of the activities of market entities is the development of digital culture. is [3]. in 1995, american programmer nicholas negroponte introduced the term "digital economy" into practice. currently, this occupation is used by politicians, economists, journalists, entrepreneurs from all over the world almost all. in 2016, the world bank published its first ever report on the state of the digital economy in the world. the theory of digital economics is in its period of development, since the transition of civilization to the stage of digital information began only a few decades ago. in the scientific literature, the modern "new digital economy" is called by various terms. for example," postindustrial economics " (d.bell)," informed economics " (o.toffler)," megaeconomics " (v.kuvaldin)," information and communication-based economics " (i.niiniluto)," technoeconomics or digital economics " (b.geis)," knowledge-based economics " (d.tapscott). digitization of the economy is difficult to imagine without digitization of the banking system, since the banking system is the locomotive of the economy. in 1983, a homelink system was created in the united kingdom, allowing bank customers to check their deposits by phone connected to a computer, make payments and transfers from a bank account. the same year, a similar pronto system was launched in the united states. but people looked at homelink and pronto systems with distrust, but with the spread of the internet, the widespread use of these systems began. a number of economist scholars have given their own definitions of digital transformation. in particular, foreign economists t. ablyazov, v.asaul believes that the process of digital transformation implies the use of digital technologies to improve existing business models, as well as improve performance. this process involves the continuous introduction of innovational technologies, which leads to a complete digital transformation of the entire economy [4]. among the scientists who are engaged in the problems of transformation and digitization of banking business in modern conditions, we can give an example of a.i.serebrennikova, n.e.sokolinskaya research. the authors note the complexity of the transformational period, noting the need for modernization and innovation in banking practice. such a transformation is accompanied by increased attention by the banking sector to the risks inherent in it [5]. uzbekistan economist scientists, doctor of economic sciences, professor, n.x.jumaev stated that "in the digital economy, it can be used to reduce cost, resulting in optimization and increased efficiency. in the digital economy, modern scientific approaches and innovations will be important and priority" [6]. according to d.r.,yusupova and f.o dodiev "at the same time that commercial banks operating in uzbekistan republic are focusing their activities on the development of innovation, the provision of banking services using financial technologies is not in demand, and it platforms of banks have not become a full-fledged financial services platform"[7]. in 2001, the bank of america received providing online services in the amount of us dollars, it became the first advanced bank in the field of electronic banking. this bank opened its 3 digital (neobank) branch in 2017[8]. according to the payments industry intelligence portal, in 2018 there were 60 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 40 www.americanjournal.org digital – neobanks in the world, the figure was 319 by 2021, with electronic money accounting for 90% of the money they use [9]. based on the above, in our opinion, digitalization of banking activities is understood as the sum of new approaches, methods, means of carrying out banking activities in improving and reducing the cost of banking products and providing banking products and services in a digital (electronic) way by carefully studying the customer and their needs on the basis of it technologies. research methodology the study of existing scientific research on digitization of commercial banking activities, the study and economic comparison and analysis of the achievements made by foreign banks in this direction with the widespread introduction of digital technologies in the process of transformation were widely used. analysis and results as a result of the expansion of the scope of application of digital technologies in the socio-economic sphere, banks are becoming a locomotive of economic development from a commercial organization producing special financial products [10]. although we focus on regulatory legal documents on the regulation of banking activities, we can witness that transformational processes are changing the content and essence of banking activities. in paragraph 1 of the regulation of the central bank "on the procedure for registering banks and licensing their activities", a bank that provides remote banking services using digital bankinginnovation banking technologies (without providing cash service) or its structural unit. the remote provision of banking services by digital banks is carried out based on the internal procedures of the bank, taking into account the requirements of legislation"[11] has been described. the provision of remote banking services is a complex of services that allows you to remotely carry out various banking operations. to do this, it is enough to use a computer or mobile phone without visiting a banking institution. remote technologies allow the client to have maximum comfort in using banking services and minimize time and financial costs in the process of working with the bank. the remote service system can be divided into two types according to the services provided to customers: information; transactional. the main principle of remote banking services is the remote exchange of various information between the client and the bank. this ensures the safety of this practice by the bank. types of remote service systems for bank accounts: a bank-client is a system that is implemented through a computer, in which a special program is installed on the client's computer. this program stores all client data on the computer (mainly payment documents and extracts from accounts). direct communication is carried out between the bank and the client's computer through the modem. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 41 www.americanjournal.org internet banking is a system that allows customers to manage their deposit accounts, including those opened to bank cards, over the internet. this type of service is a system designed to transfer payments in real time while the client is connected to the remote bank. the user scrapes the system through a web browser. the internet banking system is hosted on the bank's web server. the user has the opportunity to review all their data (payment documents and extracts from accounts) on the bank's website. through the internet banking service, the client is at his place of work or in other self-friendly conditions: transfer of payments; tracking payment transition phases; makes it possible to use their practice at any time, such as receiving all reports. through internet banking, the client will be able to connect from his place of work to the banking site via the internet, see the money falling into his account and prepare and transfer money transfers to the bank. the mobile banking system is created on the basis of internet banking technology. sms banking is a system in which a bank receives sms-view information to customers about transactions in their deposit accounts as well as accounts opened to bank cards. to obtain information from the account, it is necessary to send an sms request to a special phone number of the client bank. sms banking service for the client is given the opportunity to perform the following actions: account receipts; expenses from the account; account balance; obtaining operational information about bank operations conducted during the day. due to the increasing use of digital services by business entities of uzbekistan, in 2021, about 83 percent of the total (761.8 trillion soums) payment orders (629.8 trillion soums) were made remotely without visiting the bank. the volume of transactions carried out remotely by individuals in mobile application programs of banks is 58.1 trillion. amounted to soum. in this case, online deposits made through mobile application programs 15.8 trillion soums, conversion operations 7.8 trillion soums, online microloans 3.6 trillion soums, the volume of loan repayments 2.3 trillion soums. the number of users of remote service systems (online banking, internet banking, mobile banking, sms banking) by large commercial banks of uzbekistan is the largest in agrobank as of january 1, 2022 by 2.8 times or 2423,2 thousand, compared to 2017, in uzsanoatqurilish bank compared to 2017, as of january 1, 2022, it has increased by 30.6 times or by 3,481,500 people. although the rate of growth in national bank and asaka bank is not high, it can be observed that the number of users of this system is increasing. figure 1. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 42 www.americanjournal.org figure 1. from remote service systems (online banking, internet banking, sms banking) number of users [12] also, 9 commercial banks, together with international money transfer operators and foreign banks, created an opportunity to receive money transfers to a bank card without going to the bank, and in 2021, the population will receive 648.4 mln. us dollar transfers were made directly to bank cards without going to the bank. in order to expand the scope of contactless payments in the infrastructure of payment systems, the central bank, together with all commercial banks, primarily provided business entities operating in the trade and service sectors with payment tools that allow them to make payments based on qr-code and nfc technologies. figure 1. transaction made in qr-online system larson i vo zajmi [13] the "qr-online" system, which was launched in order to make quick payments for goods and services using mobile application software for goods and services without directly using a bank card and payment terminal, is gaining popularity. in 2021, the number of qr-codes provided to business entities 2,55,559 4,77,695 6,52,692 9,11,277 17,10,212 12,53,327 14,00,860 14,64,727 3,72,354 8,26,123 13,46,330 18,92,997 14,39,990 24,65,259 31,64,662 37,69,535 6,470 64,346 1,17,551 1,73,754 8,08,830 17,07,311 26,59,554 … 94,332 1,31,055 5,39,136 6,34,281 5,81,114 7,67,986 9,34,674 9,66,430 5,00,000 10,00,000 15,00,000 20,00,000 25,00,000 30,00,000 35,00,000 40,00,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 national bank agrobank o`zsanoatqurilish bank asaka bank 516 254 578 4429 2006 1406 6108 5309 49 9 53 133 739 2269 5949 6004 0 1000 2000 3000 4000 5000 6000 7000 i quarter ii quarter iii quarter iv quarter i quarter ii quarter iii quarter iv quarter 2020 2021 number sum american journal of business management, economics and banking volume 10 march, 2023 p a g e | 43 www.americanjournal.org by the "qr-online" information system increased by almost 1.5 times compared to 2020 and reached 92 thousand. at the same time, as part of the expansion of contactless payment technology, the service of making payments for trade and paid services without using a bank card through the "humo pay" program (nfc system of a smartphone) is being provided through the mobile applications of 14 banks [14]. 380 business entities have started using the service that allows business entities to accept payments through the tap-to-phone system (without a terminal), which was introduced as part of the development of contactless payment services. in 2021, the volume of transactions made on the basis of nfc technology will increase by 4 times compared to 2020 and will reach 11.8 trillion. amounted to soum. as a result, in 2021, the penetration rate of contactless payment technologies reached 40 percent. from september 2021, a digital identification mechanism (face id) was created in the provision of mobile services. to date, 11 commercial banks, 4 payment organizations and 4 marketplaces use this technology.[15] in turn, for enterprises and organizations, through remote management systems of bank accounts, realtime management of funds in bank accounts and making payments, sending an order for the purchase (conversion) of foreign currency funds to the service bank in electronic form, transferring monthly wages and equivalent payments opportunities were created for transferring an electronic account to the bank and using other services. figure 2. figure 2. number of users of remote banking services systems (thousand people) [16] due to the digitization of banking services, convenience created for customers, the bank can use remote banking services (management of funds in bank accounts using internet banking and mobile banking services, management of funds in bank plastic cards using ussd request, receiving information about the movement of funds in the account using sms notifications ) as of january 1, 2023, the number of users increased by 3.7 times or from 7,959 thousand to 30,001 thousand compared to the corresponding period of 2019. the implementation of digital technologies in the banking platform has a significant impact on the workforce and personnel management system, thereby reducing the workforce by automating the process. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 44 www.americanjournal.org the main problems in the digitalization of the banking system are the lack of qualified it specialists, low internet speed and coverage. however, in our country, special attention is being paid to the training of it specialists and their qualification, for example, within the framework of the "one million uzbek developers" project in cooperation between uzbekistan and the uae, about 1.2 million uzbeks have completed courses in the field of it. the total number of students registered for education under the "one million uzbek coders" program within the framework of the project exceeds 2.5 million people. more than 1.55 million of them were participants and 1.17 million successfully completed the training course. also, the interruptions of mobile applications initially presented to the general population in commercial banks and the complexity of transactions created the basis for attracting customers to digital banks and electronic payment systems (fintech projects). electronic payment systems such as click, payme, oson, u-pay have their place in the retail financial market of uzbekistan. changing the legal status of fintech companies to a "non-bank credit organization" will allow them to provide online loans on favorable terms to a large segment of the population. this leads to further strengthening of healthy competition in the financial market [17]. according to the report of mckinsey consulting organization, the return on private equity (roe) in the banks of the world has remained stable, that is, in the last 10 years, this indicator has been around 8-10 percent on average. this indicator is estimated to be in the range of 5.2–9.3 percent by 2025[18]. the ratio of net profit to total capital (roe) of commercial banks of uzbekistan is 6.1 percent as of january 1, 2022, and 13.3 percent as of january 1, 2023 [19]. this situation encourages the development of the ecosystem mechanism of the banking system, not limited to financial services. e-commerce online platforms allow banks to stay in close contact with their customers and determine their financial situation, psychological portrait, and wishes. conclusions and suggestions the introduction of digital technologies into the banking activity increases the efficiency of the banking activity as a result of the significant impact on the automation of operational processes, the workforce and the personnel management system. changing the legal status of fintech companies to a "non-bank credit organization" will allow them to provide online loans on favorable terms to a large segment of the population. this leads to further strengthening of healthy competition in the financial market. in the legislation of uzbekistan, there is a requirement to formalize real estate and motor vehicle pledges only in written form, which, in turn, causes digital banks to be limited to providing customers with only types of loans that do not require collateral. digitization of banking activity is understood as a set of new approaches, methods, and means of implementing banking activities in digital (electronic) presentation of banking products and services by increasing the quality and reducing the cost of banking products by carefully studying the customer and their needs based on it technologies. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 45 www.americanjournal.org used literature 1. ўзбекистон респуликаси президентининг 2022 йил 28 январдаги “2022-2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси тўғрисида” ги пф-60-сонли фармони. 2. https://review.uz/post/banki-i-dengi-v-cifrovoy-transformacii. 3. don 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https://finance.uz/index.php/ru/fuz-menu-economy-ru/11083-uzbekistan-vtsifrovoj-ekonomike. 10. auge-dickhut, s., koye, b., liebertrau, a. customer value generation in banking. the zurich model of customer -centricity. zurich: springer, 2016. – 209 p. 11. марказий банкнинг “банкларни рўйхатга олиш ва улар фаолиятини лицензиялаш тартиби тўғрисида”ги низом. 12. https://cbu.uz/oz/publications маълумотлари асосида муаллиф томонидан тузилди. 13. https://cbu.uz/oz/statistics/buleten/592793/маълумотлари асосида муаллиф томонидан тузилди. 14. https://cbu.uz/oz/publications/annual-report/ 15. https://cbu.uz/oz/publications/annual-report/ 16. https://cbu.uz/oz/publications маълумотлари асосида муаллиф томонидан тузилди. 17. https://www.spot.uz/ru/2021/12/14/fintech. 18. https://www.vedomosti.ru/finance/blogs/2019/06/27/804788-bankovskaya-ekosistema. 19. https://cbu.uz/oz/statistics/bankstats/843933/ 20. suyunov d.h. “тhe main problems of corporate governance and ways to solve them”, epra international journal of economic growth and environmental issues (egei) issn:2321-6247 impact factor: 8.007 (sjif 2020) 202101-13-006137, 9, 1, january, 2021. 21. suyunov d.h theoretical principles of improving the modern corporate control system in joint stock companies. international journal of economic perspectives,16(11), november 2022. 90-97. retrieve.from. 2022 by the author(s). issn: 1307-1637. impact factor: 5.865. 22. suyunov d.h the role of energy in the economic development of uzbekistan. uif-2022: 8.2. issn: 2181-3337. international scientific journal science and innovation. 2022. http://scientists.uz. https://review.uz/post/banki-i-dengi-v-cifrovoy-transformacii https://review.uz/oz/post/raqamli-iqtisodiyot-mamlakatimiz-taraqqiyotigarovidir https://finance.uz/index.php/ru/fuz-menu-economy-ru/11083-uzbekistan-vtsifrovoj-ekonomike https://cbu.uz/oz/publications https://cbu.uz/oz/statistics/buleten/592793/маълумотлари https://cbu.uz/oz/publications/annual-report/ https://cbu.uz/oz/publications/annual-report/ https://cbu.uz/oz/publications https://www.spot.uz/ru/2021/12/14/fintech https://www.vedomosti.ru/finance/blogs/2019/06/27/804788-bankovskaya-ekosistema https://cbu.uz/oz/statistics/bankstats/843933/ american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 91 www.americanjournal.org economic rehabilitation in iraq: dialectical relationship between international institutions and requirements of the national economy hussein shnawa majeed and nagham hameed abdulkhudhur college of administration and economics, wasit university *corresponding author: hshanawa@uowasit.edu.iq a b s t r a c t k e y w o r d s the importance of the research lies in its review of the most important problems of the iraqi economy since 2004 and the stages through which the economic reform measures have been implemented, as well as how successive governments have dealt with the reform measures laid down by international organizations in iraq. although there were potentials, natural resources, and detailed reform programs for the iraqi economy, they did not continue to advance their economic and financial capabilities, which is the study's problem. therefore, iraq needs international organizations to intervene for economic reform and on a continuous basis since the country is constantly exposed to crises, this shows that it has benefited from these programs only in a limited period of time when it has gone through economic and security crises and oil shocks. this shows that it has benefited from these programs only in a limited period of time when it has gone through economic and security crises and oil shocks. the study aims to determine the appropriateness of economic reform programs to reform the general budget in iraq, and what are the most important steps that have been taken to implement the economic reform policy, and the extent of its compatibility with the reality of the iraqi economy and what are its most important results. the study reached a number of conclusions and some recommendations were proposed in the light of them. economic rehabilitation, dialectical international institutions, national economy. introduction locally and globally, iraq went through a period of time that was almost long and harsh conditions at different economic and social levels. the economic policies pursued by the previous political regime had a role in under developing the structure of the iraqi economy. the iraqi economy suffered for more than two decades, from the iraqi-iranian war and international economic sanctions. it has been left negative effects on all aspects of economic life, and its negative effects extended to various social aspects. instead of developing these structures by using its main resource of oil, the economy has become suffering from the problems of unemployment, indebtedness, inflation, underdevelopment of mailto:hshanawa@uowasit.edu.iq american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 92 www.americanjournal.org production structures, and poverty. to addressing these problems, entails taking reform economic policies that affect the iraqi economic structure. it is because of the dependence of the iraqi economy on oil resources to cover public expenditures. these expenditures have been greatly affected by the circumstances of the war and the blockade and their repercussions on the decline in oil revenues. the economic imbalances that the iraqi economy suffers from emerged. it is certain that the reform policies come in response to a number of external and internal requirements and motives, whether economic, social and political. 1the study importance: the importance of the study from its review of the problems of the iraqi economy since 2004 and the stages through the economic reform measures. as well as, how successive governments dealt with the reform measures whose foundations were laid by international organizations in iraq. the need has become urgent and necessary for the economic reform process in iraq, more than before. the reform that aims to increase its actual and practical productive capabilities, relying on its own capabilities in organization, creativity and innovation, according to a long-term strategy that is not interim that represents post-occupation conditions. it needs to radically rebuild the iraqi economy in all economic and service sectors contribute, especially non-oil ones. it is taking the local, regional and international reality that surrounds iraq and its impact on the past, present and future first. according to the theoretical models proposed by the international monetary fund and the world bank that come privatizing public projects, liberalizing foreign trade and prices, and reforming the structure of the labor market. 2-study problem: despite the availability of potentials, natural resources and reform programs, they have not invested to advance financial and economic capacities except in times of crisis. the most of the reform steps in terms of expenditures conflict with the requirements of the national economy to address unemployment and poverty and their impact on changes in the political map at close intervals. 3 study objective: to demonstrate the economic reform programs applied in iraq in achieving harmonization between the requirements of international institutions and the requirements of the national economy, the most important steps that have been taken to implement the economic reform policy and the extent of their compatibility with the reality of the iraqi economy and the most important results, especially in terms of current expenditures. 4 study hypothesis: the economic reform programs applied in iraq had a role in overcoming the recurring crises in the iraqi economy, and once the crises are over. the spending and employment policies and the state's intervention will return to what they were before the implementation of the reforms. the first topic economic reform (concepts and policies) the proposals of the fund and the world bank from the fact that economic reform policies often lead to restoring internal and external balance by reducing inflation rates and working to strengthen the balance of payments and restore creditworthiness. in addition, to being focused at achieving sustainable development by addressing the negative aspects of the prevailing economic and social situation that hinder the development process in developing countries. as mentioned above, the arab countries tended towards adopting the economic reform programs formulated by the economists of the international monetary fund and the world bank, which resulted in divergence in the results from various economic and social aspects. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 93 www.americanjournal.org first: the concept of economic reform the reform in the arabic refers to making something more righteous (1), corresponding to that in english (the reform). the modification in the desired direction, and then the economic reform in linguistic terms mean the modification of the vocabulary of the economic pattern in the desired direction. for the economic side, (manuel guitain) has been defined that it as an expression of the policies that work to make local expenditures in harmony with the available resources, by creating a combination of fiscal, monetary and commercial policies and the exchange rate to ensure the existence of an aggregate domestic demand that is in line with the composition of the aggregate supply and by adopting procedures that work to stimulate the sectors of goods and services. as well as, the adoption of micro-economic policies aimed at improving efficiency in the use of resources through the removal of price distortions, the promotion of competition and the easing of administrative control (1). the internal and external financial balance is restored, inflationary pressures are reduced and its negative effects are mitigated. it is leading to an improvement in the balance of payments situation and the restoration of creditworthiness, which requires certain measures to ensure sustainable growth and reduce the unemployment. as well as, stabilization policies and reforms aimed to improving the allocation of resources and raising their efficiency in the medium and long term (2). the term economic reform (3), which was addressed by many economic policy makers and researchers, refers to the economic measures necessary to reach a high level of efficiency and competitiveness by achieving a balanced relationship between the resources available to society and its requirements, in a way that leads to correcting the basic imbalances in economy and restoring the general economic balance (4). the term economic reform is also mentioned as (correcting the foundations of macroeconomics as a precondition for the return of heavily indebted countries to the path of steady growth) (5). second: economic reform programs the one responsible for applying the repair mechanism is (crossed conditionality) shared by the international monetary fund (imf) and the world bank (wb). cooperation between the two institutions took a formal and institutional form in march 1986 with the introduction of the evolved in september 1987 into the enhanced structural adjustment facilities. the fund and the world bank adopted these propositions as a result of imbalances and distortions in the performance of economic variables in developing countries, which accumulate over a period of time, whether due to internal policies or external shocks. the (economic reform programs) refer to the package of policies concerned with managing aggregate demand so that this demand is compatible with the gross domestic product and the regular flows of external resources. the short-term measures attracted the attention of the economic administration of the international monetary fund, which aims to provide rapid support to settle the external deficit, and combat internal inflation to restore economic balance in developing countries (2), while the interest of the world bank's economic management in long-term measures aimed at creating a system of incentives helps bring about structural changes in the national economy and thus achieve continuous growth (3). these programs consist of two packages of policies: 1economic stabilization program american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 94 www.americanjournal.org it has been consisted of a number of policies that aimed at correcting financial and monetary imbalances and removing the imbalance between aggregate demand and aggregate supply. the aim of maintaining a certain level of economic performance or improving that level while reshaping the economic policy towards the free market (6). this type of economic reform program is based on the necessary fiscal and monetary policies to reduce the level of aggregate demand in the economy that exceeds the level of aggregate supply, in preparation for restoring the concerned economy to a state of balance and reducing the rate of economic inflation. the financial policies adopted within the framework of this program aim to fix the state budget deficit, reduce public spending and increase public revenues. however, the monetary reform includes liberalizing interest rates and setting upper ceilings for domestic credit in order to restrict the aggregate demand. the provisions of this program also include reduce in the price of the local currency against foreign currencies. the provisions of this program are usually designed on the basis of the short term (one to three years) and support for a credit readiness arrangement from the imf, the sponsor of the program, according to the fund provides credit loans to developing countries that implement such a program during specific time periods. 2structure adjustment program this program consists of a set of economic measures and policies that seek to address structural imbalances in the structure of the economy, through improving the efficiency of using available economic resources, liberalizing local prices and removing their distortions, improving the quality of local goods, transferring spending to local goods instead of importing, and shifting the production pattern towards export. this program also includes a call for the privatization of public sector projects, and providing the necessary incentives to encourage the inflow of foreign investments into the interior and stimulate the local private sector to expand its investments without obstacles (7). this program includes three main things: a e expenditures reduction excess aggregate demand is the result of an increase in aggregate expenditure (investment, consumption, government) the main cause of the deficit at the internal level related to the general budget or at the external level related to the balance of payments, which is reflected in the form of inflationary pressures. in this case, national spending must be reduced to a level appropriate to the available resources through a set of procedures determined by the imf for a period of approximately (12-18) months, including the disposal of economic support by the government budget as a result of the presence of production units in the public sector that achieve a loss through liquidation of these units or selling them to the private sector. the making a significant reduction in the items of transformational expenditures of a social nature, especially what is related to subsidizing the prices of necessary food commodities, and increase the prices of energy materials to the level of international prices. in addition, to reduce salaries, and allowances for workers and employees in the government and the public sector, the fund also recommends that the government stop entering into investment fields that the private sector (particularly foreign or shared). as well as, measures to reduce spending through fiscal and monetary policy. bexpenditures transportation: american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 95 www.americanjournal.org this policy includes changing the relative prices of non-tradable commodities and commercially negotiable commodities (export). this change in relative prices is achieved when the domestic price level decreases, which makes commodities relatively cheaper than similar commodities abroad. this decline in prices leads to two results. the first is to increase exports, and the second is to reduce imports. this means compensating for the deficit in the trade balance. for the other aspect of transferring transportation, it is achieved by devaluing the currency, which leads to an increase in exports. the demand for them increases due to the decrease in their prices. likewise, imports decrease due to the increase in the prices of imported commodities. therefore, it finds that the change in relative prices leads in most cases to shifting spending and shifting the production pattern towards expanding the production of commodities. exportable in order to increase the country's foreign currency revenues and then reduce the deficit in the balance of payments (8). cefficiency improvement: the world bank has been added another item in the components of the structural adjustment program, which is represented by improving production efficiency. this component relies primarily on mediumterm policies related to the supply side directed towards raising economic efficiency, which means achieving the highest level of production in light of a certain amount of available resources or achieving a certain amount of production under the least amount of resources. the second topic economic reform in iraq (rationalization and steps) first: rationalization for economic reform the wars, conflicts and international sanctions that iraq went through from 1980 to 2003 have been left a total destruction of all the facilities of the iraqi economy and its societal, political and security structures. in iraq, the economic indicators have reached their lowest levels and are not compared to countries that do not precede it in terms of independence, wealth, or human and health capabilities in which it reached highest levels since the seventies of the last century. therefore, there was a set of clear rationalization for accepting the reform programs led by international organizations such as the imf and the world bank, the world trade organization, and even the united nations and its development programs. these rationalizations can be summed up according to the following: 1the imbalance in the structure of the gross domestic product the iraqi economy has been suffering for a long time from the imbalance of the structures of the productive structure. this imbalance depicts the state of disproportion in the system of relations of economic structures and the proportions that make up the economic system. the imbalance in the economic structures will lead to creating a state of general imbalance as a result of affecting the stability of the economy. the study of the gross domestic product alone gives only a false picture of the targeted (desired) real economic growth in the economy, which means by the actual growth accompanied by the expansion of production and the level of employment in contrast to the rentier growth resulting from the increased contribution of the oil sector in the formation of output. the iraqi economy is characterized as a model of the rentier economy, due to its reliance on the oil sector as the rotation of the wheel of the economy. this reveals the depth of the called "dutch disease" in the structure of the iraqi economy. the oil sector record the largest percentage of the gross domestic product (gdp), which amounts (64.48%), while its revenues are estimated (96%) of the total budget american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 96 www.americanjournal.org revenues. in addition, iraq possesses one of the largest proven oil reserves, in addition to its human, natural and economic capabilities, which far exceed the resources found in any of the arab gulf countries. the data that issued by the ministry of planning and the central bank has been noted that the iraqi economy has achieved a remarkable development in the economic growth index, as the gross domestic product increased from (66335848.2) to (174990175.0) million dinars during the period from (20032013), and with varying annual growth rates as a result of the lifting of economic sanctions on the one hand, and the increase in oil revenues on the other hand. however, the real output amounting to (169557865.0) in 2014, thus achieving a negative annual growth rate of (-3.10%). this decreased in economic growth indicators embodied in real output is due to the decline in oil revenues resulting from the decline in global oil prices on the one hand. the control of the terrorist organization isis over parts of the iraqi governorates, especially the oil regions, on the other hand. for the period (2015-2017), the gdp has increased from (183,616,300.0) to (201,059,400.0) million dinar that achieving annual growth rates of (8.29% and 0.76%), respectively. by extrapolating the developments of the gdp, it is noted that the performance of economic growth has been modest, and this is explained by the impact left by the shock of the drop in oil prices at the global level, on the real economic aggregates, recording a compound growth rate of (7.176%) for the period (2003-2020). table (1) contribution of economic sectors to the gross domestic product and employment in iraq for the period (2003-2017) year oil sector industrial sector agriculture sector service sector contribution to gdp % contribution to employment % contribution to gdp % contribution to employment % contribution to gdp % contribution to employment % contribution to gdp % contribution to employment % 2003 59.2 1.75 3.0 18.91 7.1 12.52 30.6 66.83 2004 55.0 2.08 1.5 15.99 5.4 8.76 37.9 73.17 2005 50.1 2.13 1.5 10.89 7.0 5.33 41.3 81.65 2006 50.0 2.19 1.6 9.56 6.9 6.60 41.4 81.65 2007 52.7 2.39 1.6 13.08 4.9 7.86 40.7 76.67 2008 54.5 2.58 1.6 15.37 3.9 8.16 39.9 73.89 2009 54.0 2.56 2.1 8.50 3.9 4.21 40.0 84.73 2010 51.3 2.59 2.1 9.94 4.2 7.09 42.3 80.38 2011 51.7 2.56 2.0 10.83 4.5 7.63 41.7 78.89 2012 51.3 2.68 1.8 10.37 3.7 8.06 43.1 78.98 2013 49.2 2.99 1.5 10.74 4.2 8.29 45.1 77.98 2014 51.3 2.98 1.2 9.48 4.2 7.65 43.2 79.81 2015 55.1 3.07 0.8 9.11 2.0 7.74 42.1 80.01 2016 64.48 3.15 0.85 9.18 2.13 7.82 32.5 79.80 2017 63.96 3.2 1.16 9.2 1.83 7.55 33.05 79.96 source: prepared by researchers based on: zahed qassem badan, stagnant inflation and structural imbalances in the iraqi economy for the period (1990-2013), unpublished phd thesis, college of administration and economics, university of basra, 2015. data of the ministry of planning, central agency for statistics and information technology, for different years. table (1) has been showed that the sectoral interdependence between the oil sector and other economic sectors, which creates a state of duplication in the environment of the iraqi economy, which is american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 97 www.americanjournal.org embodied in the growth and development of the contribution of the oil sector compared to other sectors, which can be diagnosed according to the percentages contained in table (1) as being of great weight. in employment, and then bridging the unemployment gap that the economy suffers from, in the sense that growth under the rentier framework of the iraqi economy depends on oil revenues and not on increasing production and creating links between sectors with each other. table (1) has been recorded that it is noted that the industrial sector was not able to achieve a weighty contribution to the output during the period studied. at the same time, its contribution to employment was below ambition, as it ranged between (9%-18%) for the period (2003-2017). for the agricultural sector, it was also not in a better condition than the industrial sector, as it recorded low percentages of contribution to the formation of the gross domestic product. the percentages of contribution to the output declined over the period of the study. it decreased from (7.1%)(2003) to (1.8%) (2017), as a result of the drop in water levels in the tigris and euphrates rivers and the start of building dams by turkey and iran in order to control the water shares, in addition to the lack of rainfall and desertification, whose features began to sweep over most agricultural areas. the undisciplined policy embodied in opening the import in wide ways and thus flooding the local market with imported agricultural commodities with low prices compared to those produced locally, which constituted a serious competition with local agricultural commodities with a high price and popularity in favor of imported commodities and low productivity. as a result of this increase in production, unemployment rates increased due to the inability of the concerned sector to absorb the supply of labor, and this reveals a remarkable low percentage of the contribution of the agricultural sector to employment, as it ranged between (4-12%) during the period (2003-2017). for the service sector, it is noted that it recorded clear growth rates during the research period, as its contribution to the gdp increased to reach (45.1%) (2013), meaning that the contribution of this sector to the formation of output is greater than its counterpart in the agricultural and industrial sectors. as for the employment level, it is noted that it acquired the highest percentage among all other sectors combined. it has ranged between (66%-84%), and this reveals a state of disproportion and imbalance between the contribution of the sector to the output and its contribution to employment, meaning that it indicates the extent of the weak productivity of the labor force in this sector, in addition to the low added value of the output, and this matter reflects the extent of the deepening and aggravation of the phenomenon disguised unemployment in the economy. the main objective of the study and analysis of the percentages of the economic sectors’ contribution, whether in the gross domestic product at constant prices or in the level of employment, is a step to determine the depth of the degree of total disruption of the infrastructure constituting the output, measure it and compare it with the natural degree of (20%), which is calculated by finding the difference between the percentage of each sector's contribution to the gross domestic product and the percentage of the same sector's contribution to absorbing the labor force (employment) at the level of the national economy (9). the table below indicates the degrees of sectoral and imbalance in the iraqi economic environment for the period (2003-2017). table (2) degrees of sectoral and imbalance in the iraqi economy environment for the period (2003-2017) american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 98 www.americanjournal.org year the degree of imbalance in the oil sector d1 the degree of imbalance in the industry sector d2 the degree of imbalance in the agriculture sector d3 the degree of imbalance in the service sector d4 the total imbalance d 2003 57.45 -15.91 -5.42 -36.23 115.01 2004 52.92 -14.49 -3.36 -35.27 106.04 2005 47.97 -9.39 1.67 -40.35 99.38 2006 47.81 -7.96 0.3 -40.25 96.32 2007 50.31 -11.48 -2.96 -35.97 100.72 2008 51.92 -13.77 -4.26 -33.99 103.94 2009 51.44 -6.4 -0.31 -44.73 102.88 2010 48.71 -7.84 -2.89 -38.08 97.52 2011 49.14 -8.83 -3.13 -37.19 98.29 2012 48.62 -8.57 -4.36 -35.88 97.43 2013 46.21 -9.24 -4.09 -32.88 92.42 2014 48.32 -8.28 -3.45 -36.61 96.66 2015 52.03 -8.31 -5.74 -37.91 103.99 2016 61.33 -8.33 -5.69 -47.3 122.65 2017 60.76 -8.04 -5.72 -46.91 121.43 source: collected the data by researchers based on the data of table (2). table (2) has been indicated that the oil sector recorded positive imbalance degrees throughout the period (2003-2017), due to the fact that the contribution of the concerned sector in the formation of the gross product exceeds the percentage of its contribution in employing the labor force. as the degree of imbalance has been reached (57.45%) in 2003 as a result of the circumstances and events that afflicted the economy at the time, and this percentage decreased to (46.21%) in 2013. it can attribute the reasons for the imbalance in this sector to the dependence of its investments on deepening capital and not the labor force. most of the oil industries in iraq are extractive industries, as a result of which industries were not established that enhance the expansion of operation and increase the added value. in addition, to that most of the investments in this sector are foreign investments based on foreign labor in the greater part of them. for the industrial sector, it has achieved degrees of negative imbalance value throughout the study period, which reflects the superiority of its contribution to employment over its contribution to the formation of output. this type of imbalances reveals a significant weakness in the performance of the sector and its inability to move the overall economic activity. as a result of its poor productivity as well as the spread of the phenomenon of disguised unemployment, especially since the government sector constitutes the greatest part of it, while it is noted that the agricultural sector has achieved negative levels of sectoral imbalance throughout the studied period except for (2005, 2006). table (2) has been also indicates a decrease in the degrees of imbalance in absolute values, and this explains the weak contribution of the agricultural sector in both parts of the relative contribution, whether in the formation of output or in employment, as a result of the backwardness of this sector in terms of the use of modern technological methods, the high costs of production and the lack of protection for local products. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 99 www.americanjournal.org as for the service sector, it is noted that it has also recorded negative and high values in absolute terms, due to its relative contribution to employment exceeding its contribution to the formation of output, meaning that the number of the workforce exceeds the sector’s need for it, so the marginal productivity of the labor force is equal to zero or negative. it is noted that the highest degree of imbalance in absolute terms amounted to (47.3%) in 2016, while the lowest value of imbalance achieved by this sector in absolute terms amounted (32.88%) in 2013. based on that, it is indicated that the degrees of the total imbalance have exceeded the aforementioned standard ranges, and this diagnoses the extent to which the imbalance is the productive structure of the iraqi economy. the ability of the economic sectors to perform the role assigned to them in the formation of the structure of output, which leads to the inability to achieve general balance at the level of the national economy and thus creates a state of inconsistency between the economic sectors to the extent that limits its ability to achieve and sustain economic stability and growth. 2the external debt in iraq, as a rentier country that relies on oil revenues to finance its expenditures, was not previously classified in the field of countries that need international financing to achieve development because it can achieve financial sustainability, but the crises and circumstances that afflicted the economy prevented it from achieving this, and it also forced it to resort to external borrowing. the external public debt grew significantly due to the accumulation of debts and their interests, as the external debt reached (185,984,000) million dinars in (2004), but it began to decrease after (2004). it has achieved an annual growth rate (-5.27%) compared to (2004). this is due to the lifting of international sanctions on iraq (the economic blockade) as well as the implementation of the paris agreement (with the assistance of the international monetary fund through the support agreement between the fund and iraq), according to which (80%) of this foreign debt of iraq was extinguished on the one hand. the increase in oil exports and the increase in prices also contributed to the increase in revenues and thus the achievement of a surplus in the general budget and the growth of foreign reserves, which helped the government to pay its debts, and then the external indebtedness decreased on the other hand. we notice an increase in the external public debt during (2011), which amounted (71,682,390) million dinars, at an annual rate of change (0.6%), due to the increase in new loans, as well as loans financing the ministry of electricity. the period (2012-2014) record a decrease in external public debt from (70,309,800) million dinars in 2012 to (69,022,800) million dinars in 2014 as a result of the drop in international oil prices. the period (2019-2020) also record a decrease from (79,123,100) million dinars in the year (2019) to (73,200,000) in the year (2020), at an annual growth rate (-7.48%), as a result of the increase in international oil prices, and thus the government was able to bridge the deficit as a result of the increase in oil revenues, figure (1) depicts the extent of the evolution of the volume of external public debt over the period studied. 3low average per person income and high rates of poverty and unemployment according to the data that issued by the official bodies approved in the design of figure (2), it is noted that the average per person gdp reached its peak in 2004, achieving a growth rate of (49.01%). it increased from (3752.7) to (4986.0) million dinars in 2013. this increase was followed by a sharp decline in the average per capita share to record a negative growth rate of (-5.55%) in 2014, as the data shows that the increases in the per person share of gdp. it was fluctuating, and this is explained by american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 100 www.americanjournal.org the instability in global oil prices. the contribution of the oil sector in the formation of the gross domestic product compared to the small contribution of a number of other economic activities, especially service and distribution, makes the iraqi economy a slack economy that lacks the basic pillars that allow it to advance in the development process and reach sustainable growth rates. it is difficult to influence the real aggregates by using economic policies if the prevailing situation remains the same, so other economic sectors must be supported by using oil revenues in directing them in a way that ensures achieving balanced growth in them. the iraqi economy witnessed in terms of political, economic and security events over many decades, embodied in the many wars and the consequent serious political, economic and security effects, as well as the state of financial and administrative corruption in various parts of the country and the failure to follow clear-cut economic policies with financial mismanagement. these factors led to the impoverishment of large segments of the iraqi people, in addition to the double shock in (2014) embodied in the financial crisis and the terrorism crisis, and the complex triple crisis represented by the political crisis, the health crisis, and the economic crisis, which contributed to widening the circle of impoverishment. as official data indicates that the poverty rate increased in 2005 to (30.0%). the ministry of labor and social affairs announced in january (2006) that the poverty rate for this year reached (26.38%) of the total population of iraq. therefore, the latter adopted strategic plans aimed at reducing the poverty rate in iraq, as a result of which it decreased to (22.04%) in (2008) and continued to decline until the year (2012), when it reached (18.90%), and the number of the poor reached (6465) thousand poor individuals, lower than in 2007, about (332) thousand people. while the period (2013-2018) report an increase in the poverty rate. according to the estimates of the central statistical organization, the poverty rate in iraq increased in (2013) to (19.09%), and the number of poor people reached (6699) thousand people, and it continued to rise in (2014) to reach (19.28%), bringing the number of poor people to (6940) thousand people. and the increase continued until (2018), when the poverty rate reached about (20.05%). the number of the poor increased to (7644) thousand people. this is due to the deterioration of the economic situation that left behind the deteriorating security situation in the country, the high rates of unemployment, the inability to reach food rations from the ration card, and the weakness of social protection networks, which led to the death of many iraqi families. below the poverty line, some of the displaced have fallen into poverty as a result of losing their sources of livelihood in the areas from which they were displaced. after that, (2019) record a decrease in the poverty rate to reach (19.26%). the number of poor people also decreased to (7536) thousand people, but the economy’s exposure to the triple complex crisis contributed to the return of the poverty rate to (31.7%) in (2020) and reached the number of the poor is (12359) thousand people (figure 1). as for the unemployment rate during the research period, it is noted that the unemployment rate decreased in (2005) to (17.97%) after it was (26.80%) in (2004), and this decrease is mainly due to a change in the mechanism of collecting data on unemployment. in addition, to replacing the main question in the survey in line with the standards of the international labor organization, that the person who worked for wages even for one hour in the week preceding the survey is not classified as unemployed, and not because of a change in the conditions of the labor market, and this decline in unemployment rates continued to reach (11.70%) (2007). this is attributed to the goal of government policy to increase employment in public institutions in order to address the problem of unemployment in iraq that year, as well as to return the dismissed politicians to government departments, but the american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 101 www.americanjournal.org unemployment rate rose again in 2008 to reach (15.34%), as a result of sectarian conflicts massive immigration of citizens. many employees left their jobs due to the deteriorating security situation. unemployment rates (20172019) are described as close, as a result of the decline in government and private investment spending due to the government’s adoption of austerity policy measures in order to bridge the financial deficit gap that the federal budget suffers from, in addition to the decline in payments to contractors and contractors dealing with the state due to the suspension of many projects. in the (2020) witnessed an increase in the unemployment rate as a result of the health crisis, as the latter contributed to an increase in the unemployment rate to (13.74%). figure (1) depicts the development of unemployment rates in iraq for the period (2004-2020). figure (1) income per person and high rates of poverty and unemployment second: the reform programs concluded with imf the return of the relationship with imf and the request for its aid for the purpose of economic reform, the adjustment of its credit position globally, and the scheduling or cancellation of its debts require obtaining the fund’s support in this matter, especially before the paris club. therefore, iraq began the journey by presenting a letter of intent in which it indicated the economic policies that it intends to implement, then another letter was sent to the fund in november 2005 to indicate the iraqi government's commitment to the agreement called (sba), that is, the precautionary measure agreement concluded on 23/12/2005 regarding economic reform and the duration three years until 31/12/2008. based on the agreement for the necessary post-conflict assistance program (epca) on september 29, 2004 (10), financial aid amounting to (436) million us dollars was provided, followed by an amount of (685) million dollars to support the reform process and on concessional terms under the agreement (10). iraq has easily paid this financial aid to provide its liquidity and to demonstrate its commitment to the fund for the purpose of obtaining support and advice in reforming its economic policies and to confront the creditor countries and to give a certificate in this regard by the fund that the iraqi economy will transform into a market economy and is committed to reforms to reassure the creditor countries and parties if these agreements were the way to settle debts with the paris club. in return for iraq's commitment to its recommendations, the international monetary fund has offered to work to assist iraq in five main areas, which are (11): 2004 2024 2044 2064 2084 2104 2124 1234567891011121314151617 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 102 www.americanjournal.org 1providing advice and advice with regard to economic policies, and helps in setting a general framework for a comprehensive and stable economic policy to be an essential element for economic growth. 2providing technical assistance to help iraq manage and set policies to manage the country's affairs. 3participation in the formation of the international advisory and monitoring council, which was established to ensure the use of the development fund's resources in a transparent manner, while ensuring the sale of iraqi oil in accordance with global market practices and conforming to international standards. 4help iraq to obtain loans through the fund's cooperation with creditors who are members of the paris club and other creditors to develop reliable estimates of iraq's foreign obligations and work to obtain large exemptions from iraqi debts. 5the fund presents its readiness to provide financial assistance in a phased manner and in a manner commensurate with the policies and procedures followed in the fund, and the international monetary fund has the ability to provide (850) million dollars as emergency assistance to iraq in the first stage, and this is followed by other amounts according to iraq’s need and on an annual basis ranging between (1.70.850) billion dollars as a supplement to the aid provided in accordance with the fund's usual facilities. the issuance of security council resolution (1438) in 2003, which drew up a strategy to restore iraq to its role in international relations, especially international financial relations with the international fund and the world bank, the fund has an important and clear role in dealing with iraq's indebtedness, as it was able to persuade the paris club countries to reduce 80% of the total debt (12). based on that, based on what he presented of economic analysis tables on iraq to the paris club, in which he confirmed iraq’s inability to fulfill its debts if it did not obtain a reduction of 80% of paris’s debts and reschedule the remainder of it until 2028, and the reduction will be according to stages coinciding with the conclusion of specific agreements according to the following: areducing 30% of the total contract for signing the agreement with paris club members. breducing 30% of the total debt upon conclusion of the sba agreement. cas for 20% of the rest of the debt, it will be reduced if iraq adheres to the sba agreement no later than 2008. thus, an amount of (44,910,382) billion dollars has been reduced out of (51,627,259) billion dollars of the debts owed to the paris club by iraq (13). the following is a review of the most important agreements, conditions and programs concluded with the international monetary fund as they relate to the reform of the public budget. 1emergency essential post-conflict assistance (epca) program although iraq sent a called letter of intent to the management of imf in may (2003) for the purpose of obtaining emergency assistance amounting to (634) million dollars, conditional on the implementation of the economic program of the fund. however, the american pressure postponed this trend in the relationship with the fund by including iraq in the “emergency assistance program for countries that have gone through difficult circumstances”(14) and that this program be a prelude to the implementation of the fund’s program and its conditions in economic reform. this program is a prerequisite for accepting the rescheduling of external debts with the paris club and those outside this club, in addition to applying appropriate economic reforms in order to position countries to obtain their debts, as this reform program works to prepare the debtor country to improve its economic situation and to make it pay off the debt. based on what he did structural reforms in his economy. this program american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 103 www.americanjournal.org contains a number of measures and procedures for post-conflict countries, which can also be clarified from the following table: table (3) structural relationships and key policy procedures under the emergency post conflict assistance agreement (epca) structural procedures the maximum period for executing the works business operations develop monthly financial accounts for central governments and the private sector 2004 the ministry of finance follows up the committees in collecting data and information that has been missing for a long time issuing instructions regarding bank licenses and standard ratios related to banks 2004 it has not yet been done and there are instructions that can be issued regarding this matter payment systems legislation 2004 the law came with the help of the imf. work on a sophisticated financial survey 2005 carrying out continuous preparatory work in order to carry out this financial survey, but this survey has not been completed yet. adopt new plans to control tax policy and administrative habits 2005 need to unify tax policy new plans for the tax system must be drawn up establishing an existing salary system based on modern foundations and working under an automated salary system for all government employees 2005 the government has developed the salary system and is working on introducing modern and sophisticated mechanisms such as tax credit cards it is noted from the table through (business processes) that most of the procedures have not been completed until now, with the exception of salaries, wages, and methods of paying employees’ salaries, which were completed later than the specified date within the structural procedures established in the agreement. the agreement also included procedures for the main policies that require approval. to carry out the economic reform, these procedures were according to the following table: table (4) major political actions no major policy actions year procedures 1 increasing the prices of domestic petroleum products 2004 the iraqi authorities conducted an audit of the financial balance in 2005 and asked international companies to carry out audits. 2 carrying out the external audit by the central bank of iraq 2005 work has been done to increase the prices of petroleum products 3 adopting the administration law and implementing the instructions to implement it 2005 instructions have been issued requiring work under this system 2declared support agreement between iraq and the fund (sba) this agreement aims to improve the indicators of the iraqi economy and work to achieve stability in it in order to achieve comprehensive economic development through the economic and social reform program. this agreement has specific objectives, which are: first reducing iraq's debts by about 80% and entering into comprehensive negotiations to reduce the total debt. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 104 www.americanjournal.org secondgradually abolishing comprehensive, non-productive and inefficient government support at a time when it seeks to ensure the protection of poor groups through targeted protection networks with efficiency and the ability to provide appropriate protection for poor and low-income groups and to show the costs of financial support clearly and in aggregate in the budget the public. thirdimproving the public sector and encouraging investment; for the purpose of creating a suitable environment for private investment, creating job opportunities for many of the workforce, and reducing the unemployment rate, this requires a developed judicial system that is capable of protecting private property and concluding contracts efficiently, in addition to applying the investment law and commercial law and applying it effectively. the clarification of practical procedures for registering commercial businesses and registering private property in order to obtain the necessary loans for commercial work, and to help achieve this goal, public companies must be restructured and privatized and managed according to economic principles, while giving the private sector an opportunity to stimulate housing construction and work to encourage public savings and investment to create an environment suitable for investment and growth with the government's efforts to reform the financial sector. fourthreforming the financial system and increasing the ability to obtain credit services by commercial companies and individuals, restructuring government banks and strengthening their role in the banking field in general by preparing the state for a suitable structure for competition in an efficient and appropriate manner while giving a clear role to private banking work for effective participation in banking work, and share it to provide services to government accounts and pay salaries and wages to employees and contractors. fifthurging the iraqi government to achieve the goals of the third millennium until 2010 in an appropriate and efficient manner by reducing the number of families living below the poverty line by a third, reducing the unemployment rate by half, giving a role to women to participate in work and doubling this participation, particularly in the non-agricultural sectors. the increase in spending in the health sector from (2.5%) to (4%) of the gross domestic product as a minimum, and ensuring universal access to primary health care. sixthlimiting the increase in current spending and attempting to reduce the budget deficit and adopting a tabulation system (15) and classifying information related to the general budget according to an accounting model consistent with the international monetary fund system related to cash exchange accounts for the year 2001. seventh-reducing government support for oil derivatives with the aim of bypassing the smuggling of oil and its derivatives and raising their prices in line with the prevailing prices in neighboring countries (16). eighthreforming the oil sector, implementing the automatic oil meter system and using it in the production and export of crude oil, preparing a draft law for the oil industry that includes the method of dealing with investment companies in the private sector, and establishing a committee to supervise the general audit of the development fund for iraq and the sale of oil exports. ninthallocating specific amounts under the heading of regions and governorates to be distributed according to the population percentage to the provincial councils and the kurdistan region in order to use them according to their developmental orientations, noting that this type of allocation has been in effect since 2006. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 105 www.americanjournal.org tenthapplying fiscal federalism in iraq after 2003 and finding an appropriate formula for sharing financial resources to ensure vertical justice between the center and lower levels of government, as well as horizontal justice between parallel levels of government (). financial independence in the freedom to contract debts, mobilize one's own resources, and implement exchange obligations often weakens the central government's efforts to improve financial results, impose financial discipline, and expand the coverage and inclusiveness of the public budget (17). the sba agreement is summarized in carrying out financial and monetary reforms at the level of the iraqi economy, working on controlling public expenditures, canceling subsidies, especially the ration card system and oil derivatives, limiting state interference, giving way to the private sector and giving it a greater role in leading economic activity while providing loans to help solve problems. funding problems for the iraqi economy, in addition to achieving the conditions for the transition to a market economy and creating an advanced and effective banking system and structure for the public sector. the agreement resulted in lending iraq in the amount of (744) million dollars (). dealing with the loans of imf continued within the framework of (sba). the standby credit agreement, as the fund pledged to provide (2.376) billion dollars in 2010-2011 to support the general budget according to specific conditions, that the loan period is (5) years, including a grace period of three years and with a total interest of 0.20% annually, and the amount (1.69) billion was committed in 2010 (1.871.730000) billion (). and because of the double shock in 2014 represented by (isis) seizing parts of iraqi lands and the outbreak of the war against it, as well as the drop in global oil prices, iraq again needed the fund for the purpose of assistance by lending it sums to finance the war and fill the budget deficit generated by the increasing military spending with the decrease in prices that cover this spending. the events of isis greatly affected the infrastructure of iraq and the impact on its oil exports and shook the confidence of foreign and local investors in the iraqi economy because it is in insecure conditions, and all of this affects the financial capacity of iraq, especially its general budget, which is the financial and economic plan of the government. therefore, iraq entered into a new agreement with imf since 2014. 3the second stand-by credit agreement the same name as the previous agreement called (sba) for support and credit readiness, as the iraqi government sent a press release to the international monetary fund informing it that iraq is suffering from a financial crisis, the cessation of trade, the impact on the general budget and its potential to achieve growth in the medium and long term, and the government has pledged within this statement with the following (18): astarting to implement steps to put in place measures to control public financial conditions so as to contain public expenditures in a manner consistent with the fiscal space of revenues and financing. brationalizing government spending by reviewing the employment policy in the public sector and reducing subsidies, especially fuel, as well as rationalizing luxury spending and investing in increasing production capacities through specific priorities. cintroducing non-oil taxes to diversify sources of income to diversify revenues. dworking on a diversified economy with a greater role for the private sector. this is done by reforming state-owned enterprises in the medium term, which number (176) enterprises and employ more than (500) thousand workers. these enterprises lack economic efficiency and need urgent reform. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 106 www.americanjournal.org egiving private banks an opportunity to compete with government banks on fair and economic bases and giving them the opportunity to mobilize savings and deal with government institutions on the same level as government banks. fpreparing the business environment in accordance with international standards so that the private sector can play its role in improving macroeconomic indicators. hwork to reduce the non-oil deficit by $20 billion, equivalent to (12%) of the non-oil gdp for 20132016. the fund has linked its approval when linking the agreement to the following procedures and conditions for the implementation of the terms of the agreement, which are: firstincluding the salaries of senior state employees and higher and private grades with its allocations through tax deduction. secondproviding the appropriate environment, such as raising the efficiency of financial control agencies, and working to impose control on public spending. third-taking measures to settle the dues of the oil companies. fourthwork to issue a financial management law commensurate with the financial situation of iraq and provide all necessary data to the international monetary fund. fifth-taking measures that would reduce government spending and carry out a major financial correction by reducing inefficient investment spending, gradually increasing non-oil revenues, and committing to protecting rational social spending away from waste and corruption. sixth-efficient use of the loan provided by the fund to achieve its objectives in economic reform (19). based on this agreement, iraq pledged to work hard to legislate laws that would combat money laundering and terrorist financing and stabilize the financial sector. in light of this spending, the fund aims to help iraq implement economic reform programs and restore its financial balance in the medium term. the program will be reviewed for a period of three years, with the approval of the fund’s executive board on the standby credit agreement with iraq at a value of (3.831) billion sdr units (5.34) billion dollars or (230%) of iraq’s share to support the government’s economic reform program. the council’s approval allows for the disbursement of (634) million us dollars to iraq, and in july 2015, iraq had received an amount equivalent to (891.3) million special drawing units to (1.24) billion us dollars upon approval from the rapid financing tool (20). a salaries and wages (compensations of employees): from figure (2) regarding employee compensation values and their annual growth rates, it is noted that the values of salaries, wages, and allowances of all kinds increased, especially in 2005, as the growth rate reached (128.9%) as a result of improving the salary and wage scale, the re-formation of the security forces and the army, and the increase in volunteering operations. the return of the politically dismissed and the returnees from abroad coincided with the growing ability of the state to bear additional expenses to compensate the category of employees and other categories from the previous years of deprivation and improve the living conditions of the iraqi citizen. new salaries and wages contributed to the growth of the average salaries and wages by (47%) over the year 2007. the percentage of spending on salaries and wages out of total public spending has also increased. the percentage of salaries and wages contribution has moved to a significant increase after 2004 from total current spending, reaching (29.45%) compared to (9.63%), despite the emphasis of economic reform programs on reducing the percentage of salary contribution. and wages to public and current spending, and developing solutions to that by delaying employment, trying to reduce the number of employees, reducing benefits, adjusting the salaries of workers in the security services, dealing with the issue of american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 107 www.americanjournal.org absentees without leave, and linking wages to productivity. however, the government for political and not economic reasons created many additional positions and departments and a large number of advisors, as if it failed to use the general budget to stimulate the economy and thus create new jobs. everyone considers it an acquired right that the state must fulfill. this is due to its loss of the basic public capable of advancing the private sector or carrying out the infrastructure to absorb the surplus of the labor force, in addition to the lack of harmony between its educational policy and the labor market. international organizations, in the stand-by credit agreement, demanded a reduction in salaries and wages by (3) trillion for 2016, but the government was unable to take this reduction as the reduction amounted to only (0.8) trillion, and the 2013 were all lower than 2013 in which salaries were wages amount to (42.8) trillion iraqi dinars. therefore, the recommendations of the fund and the bank did not succeed in prompting the government to influence private expenditures in salaries and wages in a clear and effective way. rather, the state, despite its attempt to merge ministries and abolish positions, could not actually affect this type of spending, and it still constitutes a threat and concern when preparing any budget and a source of concern to increase inability or inability to provide it in the near future. figure (2) depicts the relative importance of employee compensation in iraq for the period (2004-2020). figure (2) the relative importance of employee compensation and its growth rates in iraq for the period (2004-2020) bsocial transfers transfer expenditures or social transfers constitute a clear percentage of current and public spending. figure (3) shows the extent of the contribution of social transfers from both current and public spending, as this includes spending on social benefits such as social advertisements such as the social protection network, support for farmers, the ration card, as well as welfare programs social for some state departments such as the ministry of migration and displacement, the kurdistan region and other departments. however, the second part of the social transfers is the subsidies and grants that are provided to state departments that do not generate revenues, civil society organizations and scientific institutions that are not linked to the ministry of higher education, in addition to debt service and installment payments within the economic classification of public expenditures in the account of grants, subsidies and debt service. figure (3) showed social transfers are varied and fluctuating, although they are dominated by positive growth rates, with the exception of the years (2005, 2009, 2015 and 2020). this depends on the financial conditions of the state, as these years witnessed a decline in financial capabilities as a result american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 108 www.americanjournal.org of the drop in oil prices and the decline in public revenues. while it is noted that the increase in social benefits reached its maximum in 2014 due to the increase in social benefits with regard to immigration, the displaced and social care due to the large migration of the people of the areas entered by the terrorist organizations of isis, as the social benefits increased from (6737447) million dinars in 2013 to (14363878) million dinars in 2014, with a growth rate of ( 119.99% thus, the total transformational expenses increased from (20,168,758) million dinars in 2013 to (23,744,730) million dinars in 2014, with a total growth rate of (17.73%). because of the double crisis, grants, subsidies and debt service decreased from (134,313,112) million dinars in 2013 to (9380.852) in 2014, at a negative growth rate of (30.15%). according to the recommendations of the international monetary fund, there was a decrease in the amount and growth rate of social transfers to (16,156,046) million dinars in 2015, with a negative growth rate of (31.95%) due to the decline in social benefits to (11,447,912) million dinars, with a negative growth rate of (20.3%) over 2014, while (subsidies, grants and debt service) decreased from (9380852) million dinars in 2014 to (4708134) million dinars, with a negative growth rate of (49.8%). within the 2015 support and readiness agreement, the fund has recommended a reduction in transfer spending by (2.4) trillion dinars, including by reducing the ration card. oil requires an increase in the social protection network by (1.8) trillion, including the ration card, by an increase of (0.2) trillion dinars (21). figure (3) includes the relative importance of the components of social transfers. figure (3) the relative importance of the components of social transfers in iraq from public spending for the period (2004-2020) despite all the recommendations, the total social transfers reached their peak in 2019, reaching (36,060,509) million iraqi dinars, to more than (36) trillion iraqi dinars, and that the values of social benefits amounted to (19,696,020) million dinars, with a growth rate of (1.29.86). grants, subsidies and debt service amounted to (16,364,489) million dinars. it included the account of social benefits, the account of the general activity of the state, work, social affairs, ration card, immigration, the displaced, the kurdistan region, and other departments such as the office of financial supervision, the supreme judicial council, and the federal court. we do not know the reason for the inclusion of these departments in social care, while the account of grants, subsidies and debt service included the bulk of it the payment of interest and installments for american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 109 www.americanjournal.org the debt, which was allocated for the general state activity wager (affiliated to the ministry of finance) an amount of (18200793074) million dinars (22) more than (18) trillion dinars as for the rest of the amount, it was distributed to most of the state ministries. exploiting the increase in revenues for the year 2018 with the suspension of most investment projects and not directing them, and paying more attention to the current spending in terms of debt repayment and social welfare for the year 2019, and among other factors that helped this spending is what was achieved from the budget surplus in 2018, as it achieved more than (25) trillion iraqi dinar. in order to clarify two important details of the social benefits, it is possible to extremism for each of the ration card and agricultural support according to the following: firstthe ration card from the follow-up of allocations related to the ration card, it is noted that the iraqi government responded to the support agreement for the year 2004, as it was affected by the reduction of ration card allocations since 2006 and reaching the lowest level in the year (2010), achieving a negative growth rate of (26.31%), but it continued to rise with higher state revenues. it achieved an annual growth rate of (22.9%) in 2013, but the supplies since 2014 and the financial hardship from the fund’s share and recommendations on the one hand, and the lack of real benefit from spending on the ration card and its exposure to corruption made the state significantly reduce spending on it. figure (4) the relative importance of ration card allocations the credit readiness agreement with the fund emphasized the reform of the ration card as well as social benefits through the development of databases that measure financial capacity and with the assistance of the world bank. after completing the program, it is possible to determine the eligible category and its importance to receive the ration card, as well as financial funds as social benefits (social welfare network) based on the available budget. this leads to unnecessarily increasing expenditures and inequality in distribution, as those with incomes of more than (1.5) million dinars were excluded from being included in the general distribution, but the effect of this measure is still limited. in light of continuous improvements and reforms, it was possible to link the cash transfer program for welfare purposes. social and public distribution system in terms of the level of eligibility and benefits, and this is not currently available. the imf believes that it is possible to follow the reform procedures to save (1.1) trillion by reducing the ration card by one-fifth (1/5), as an alternative assumption for the lack of income data and through various data and statistics showing that (40%) of the beneficiaries are not eligible to benefit from this program. it is also necessary to change the contents of the food basket because some of its components american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 110 www.americanjournal.org do not correspond to the size of the needs of the beneficiary families, such as flour, as it exceeds the actual need by 20% (23). (second) subsidizing electricity and oil derivatives subsidies for electricity and oil derivatives constitute a large proportion of public spending for (20042005), and the amounts or values remained high and close for 2004 and 2005 in the years (2006-2007) until the application of the subsidy agreement with the international monetary fund began. its results were shown by reducing subsidies on oil derivatives and the electricity fuel sector, so the subsidy decreased to (1391833) million dinars in 2008, with a negative growth rate of (68.9%), which is the highest negative growth rate during the study period. however, the subsidy began to increase after the increase in the need for electric power and the large consumption of fuel, but it did not reach what it was in the first years of the study after the price subsidy was partially and not completely lifted. the subsidy decreased for the years (2015, 2016) in response to reports issued by the monetary fund. to follow up on the standby credit agreement with iraq in 2018, it was to pay the dues owed by iraq to pay the natural gas that financed the electric power in iraq. it is also noted that the percentage of the contribution of oil derivatives subsidy and electricity subsidy decreased significantly during the study period after 2007 in response to the economic reforms demanded by the international monetary fund, especially in 2014 to address the budget deficit in iraq and to enable iraq to face the dual crisis that occurred in 2014. the process of lifting subsidies is based, according to the opinion of the international monetary fund, on the fact that fuel selling prices in iraq are low when compared to prices in neighboring countries and the region, and the fuel subsidy structure includes the entire chain of production, refining and distribution. in addition, fuel subsidies rise with the increase in prices in the global oil markets and fall with the decline in oil prices, which causes volatility and results in the complexity of spending management in the budget and the increase in public financial burdens. as for electricity, a new reform was achieved with an upward procedure for electricity tariffs in january 2016, but its features were not clear, and the additional fees covered only 11% of the costs. expectations indicate that the subsidy rate is (5.2%) in the total gdp for the year 2017 (24). the iraqi government was unable to continue imposing electricity tariffs after a wave of anger when the government presented this matter to the media due to the poor services provided in the supply of electricity, in addition to the inability of the iraqi citizen to bear the exorbitant cost of electricity. also, the allocation of the collection sector met with strong opposition and refraining from paying due to the state’s inability to impose the law and collection on citizens, although the state reduced allocations for this subsidy. however, it suffers from high indebtedness in this aspect, and non-payment affects the supply of energy and imported gas, as the indebtedness to the iranian side amounts to (7) billion us dollars (25). the government has dealt positively with the recommendations of the international monetary fund in reducing fuel subsidies since the subsidy agreement of 2004 and has continued this approach since 2008, in varying degrees from one year to another, and the best year for this commitment in 2015. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 111 www.americanjournal.org figure (5) percentage of subsidizing electricity and oil derivatives from public spending the solution, as presented by the fund, is to develop an organized plan for the purpose of exploiting the associated gas through contracts and agreements with international companies to extract it instead of importing it, and iraq possesses energy and a very large stock of natural gas, whether associated or available in the reservoirs of the iraqi land. and there are contracts concluded both in the production of electric power, such as a contract with siemens for the amount of (14) billion dollars, as well as for the production of natural gas with the french company, for an amount of (27) billion dollars (26). however, it seems that there are external forces that impede the implementation processes, as there are clear indications that the energy file is a political file rather than an economic or financial file, as the completion of these contracts is sufficient to get rid of a large burden on the budget by bearing the costs of energy and importing it if the will is available. free and stop the bleeding of waste and corruption that destroyed the return of this country. conclusions 1. the economic reform policies that were followed did not succeed in addressing the problems of poverty and unemployment in iraq, but rather constituted an important factor in the growth of its gap due to the commitments that can be described as austerity that were undertaken when adopting the implementation of these programs. 2. these reform programs increased the structural and structural imbalances that the economy suffers from, which worked to strengthen its link to external shocks, especially shocks related to international oil prices. 3. despite the availability of capabilities, natural resources, and detailed reform programs for the iraqi economy, because the success of these programs or not depends on the efficiency of the political system, as well as the effectiveness of the administrative apparatus, which takes responsibility for supervising the application and implementation of reform policies. 4. although the economic reform programs were able to reduce the size of the external public debt arising as a result of the wars and international sanctions before 2003, they were implemented by external will due to the prevailing conditions after 2003, meaning that they were not the result of the desire to reach the desired levels of development. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 112 www.americanjournal.org recommendations 1. the best treatment to overcome the problems of structural imbalance in the iraqi economy is by moving away from the rentier nature of the economy and adopting support for sectoral growth in agriculture, industry and services, and this is by achieving harmony and consistency between economic policies and can benefit from oil revenues in the development of other sectors. 2. the need to work on reformulating economic policy, by emphasizing the data of the economic theory appropriate to the economic reality in iraq and the possibilities of achieving them, instead of focusing on political factors. 3. the success of structural stabilization and adjustment programs with the aim of achieving economic reform and shifting towards a market economy requires the provision of a solid infrastructure through the state’s adoption of this requirement in order to achieve the desired goals of reform efficiently without neglecting the role of the private sector in managing and allocating economic resources under the philosophy of the market economy. 4. encouraging foreign direct investment in addition to private domestic investment with the aim of stimulating and increasing productive sectoral growth, through investments that are of public benefit and beneficial to the economy, in addition to their contribution to providing job opportunities, transferring expertise, modern technology and advanced production units, and supporting the backward and forward linkages of the economic sectors. references 1. ahmed a. salman, jalil k. ghaidan. 2014. economic assessment of the economic reform programs applied in iraq after 2003. journal of political issues, 37-38. 2. ahmed o. al-rawi. 2017. international finance and its economic and social impacts: an analytical study of the iraqi religion. dar al-doctor for administrative and economic sciences, 1st edition. 3. iyad k. al-anbar. 2020. programs of the international monetary fund and world bank agreements in iraq after 2003. journal of the kufa studies center. 58. 4. bassem a. hadi. 2018. the monetary effects of fiscal policy in iraq after 2003,” 1st edition, baghdad. 5. central bank of iraq, annual economic report, department of statistics and research, baghdad, 2010. 6. the statement of the iranian minister of electricity 12/11/2021: iraq has paid most of its debts to iran related to the export of gas and electricity http://www.arbaic.rt.com 7. republic of iraq, ministry of finance, borrowing department, published on the website www.mof 8. jamil h. a. al-athuri. 2000. structural imbalances in the yemeni economy and economic reform policies. phd thesis, al-mustansiriya university, baghdad. 9. justin iskandar. 2005. the international monetary fund and the privatization of the iraqi economy. a research presented to the conference of workers in the oil field, baghdad. 10. hatem k. belhawi. 2010. economic reform in iraq within the framework of the support agreement (sba) with the international monetary fund,” an unpublished master’s thesis, college of administration and economics, al-mustansiriya university. 11. hassan l. kazem. poverty in iraq: approach from the perspective of human development. research published online. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 113 www.americanjournal.org 12. salem t. al-najafi. 2002. economic stabilization and structural adjustment policies and their impact on arab economic integration, first edition, house of wisdom, baghdad. 13. salem t. al-najafi. 1999. poverty and the policies of economic adjustment and structural change in arab agricultural economies (theory and experiences)”, economic studies, house of wisdom, issue 1, baghdad. 14. economic and financial reform policies. economic papers, journal of the general secretariat of chambers of commerce, industry and agriculture, a group of studies presented to the thirty-fourth session of the conference on trade, industry and agriculture for the arab countries, beirut, 1997. 15. the arab fund for economic and social development. the social effects of economic correction in the arab countries,” presented by dr. jassim al-mannai, edited by taher kanaan, a series of research and discussion workshops held in abu dhabi united arab emirates for the period january 17-18, 1996. 16. the international monetary fund. the international covenant agreement,” the text of the agreement on the international monetary fund website, 2007. 17. international monetary fund, press release no. 04/16, washington, december 2016. 18. international monetary fund, country report 379/16 washington, december, 2016. 19. international monetary fund, country report 171252, august 2017, p. 12. 20. international monetary fund, country report no. (25/17) b 2017. 21. arab monetary fund, unified arab economic report 2015, uae, 2015. 22. abd a. al-alwan. 1997. economic stabilization and structural adjustment policies and their effects on agricultural development efforts and food security in arab countries, research presented to the fourth scientific conference of the arab association for economic research, cairo. 23. ali a. al-sheikh. 2008. iraq’s external indebtedness, reality and prospects,” tikrit journal of economic and administrative sciences, tikrit university, issue (11). 24. emad k. ibrahim, shaima a. sattar jabr. 2018. the role of the international monetary fund in managing iraqi debt,” proceedings of the fourth specialized scientific conference, administrative technical college baghdad, held for the period 28-29/11/2018. 25. muhammad b. a. al-razi. 1967. mukhtar al-sahih,” 1st edition. 26. mazhar m. salih. 2012. monetary policy in iraq, building macro stability and maintaining a sound financial system,” house of wisdom, baghdad. 27. hajir a. zaki. 1989. trends of the international monetary system in adjustment, reform and financing, phd thesis, college of administration and economics / university of baghdad. 28. hoda el-sayed. 1997. stabilization and structural adjustment programs on the standard of living in egypt, arab economic research journal, no. 9. 29. us department of state. 2004. iraq towards a better future,” office of the foreign information program. 30. ministry of justice, iraqi gazetteer, issue 4524, general budget law for the year 2019, table of federal budget estimates for the republic of iraq 2914, p. 49. 31. venkata c.s. ratnam. 1996. trade unions and structural adjustment, actrav international labour office-geneva. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 114 www.americanjournal.org 32. manuel guitain. 1994. financial policies capital market in arab countries edited, by said elnaggar”, papers presented at a seminar held abu-dhabiunited arab emirates, january 2526/1994, imf. washington. 33. wolfgang hein. 2001. global governance and the evolution of a new role of international financial and economic institutions for sub-saharan africa, deutschesberseeinstitute, hamburg . american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 93 www.americanjournal.org integration process in primary education yulduz mamarajabova chorshanbi's daughter termiz state pedagogical institute, student of primary education group 304. a b s t r a c t k e y w o r d s the article describes the purpose, task, method and tools, as well as the opinion of scientists about integration. integration, teaching process, course and directions, interdisciplinarity, teaching process, method, tools. integration is a science that deepens interdisciplinary knowledge and the content of these, reveals the integrity of the world, the interrelationship between nature and society in students. its purpose is to integrate the interdisciplinary knowledge of teaching into a whole. integrating sciences is an important didactic condition of the educational and training process, and it fulfills these tasks: 1. to ensure the consistency of study material which is main source of pupils and the didactic dependence of concepts acquired from other subjects, 2. it increases the interests of pupils on acquiring knowledge and accelerates their mental development. 3. integrating disciplines, i.e. through the gradual implementation of interdisciplinarity in teaching, makes it possible to expand students' scientific outlook . in primary grades, it is important to develop the scientific worldview of students through the integration of education in educational technologies and interdisciplinary communication from the point of view of the present time. the student will be able to apply his knowledge more actively in practice. because in this, there is a chance to open more widely the essence of knowledge and imagine the world as a whole. when imparting science knowledge, it enriches and fills it more meaningfully based on comparing it with other science information. formating the content of the general education school, humanizing teaching, increasing the strengthening of social and economic aspects is main purpose. as a result of improvement of integratededucation in elementary grades is aimed at vividly reflecting the humanitarian nature of our society a successful solution to such a responsible and complex task requires a teacher to have deep knowledge in this field, pedagogical skills, high culture, tireless research, study, be creative and generous. only a teacher with such qualities can educate a person who has deep theoretical knowledge and skills of integrative education, knows the secrets of natural processes, understands its socioeconomic and spiritual importance, and has a conscious attitude towards it. in pedagogical dictionaries, the concept of "interdisciplinarity" is defined as the mutual adaptation of educational programs. interdisciplinarity in the educational process activates the learning activity of students. in this case, the student mobilizes his activity to search for unknown relationships with american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 94 www.americanjournal.org existing scientific knowledge or to form new concepts based on clearly established interdisciplinary relationships. the basis of integration is interdisciplinarity and finds its development in the idea of integration. the study of subjects with an integrative content is considered as a factor that ensures the knowledge, work methods, and personal qualities of future specialists. in integration there are two concepts in this regard: system, a concept that indicates the state of dependence of separately classified parts and tasks of an organism and the process leading to this state; the process of rapprochement of sciences, which is carried out along with the processes of classification. according to scientists, the concept of "pedagogical integration" implies the explanation of certain forms of integration,prediction and their management within the framework of pedagogic sciences in accordance with its tasks. v.s. bezrukova confirms this rule and describes it as a type of scientific integration implemented within the pedagogical theory and practice. if we integrate the topic of ``paper folding methods'' from the science of technology: 1. we measure the paper in cm, cut it into a rectangle, triangle or other way. we connect it with mathematics. 2. the color of the paper: white, yellow, black, i.e. adjective. we connect it with mother tongue 3. the emergence of paper. paper is made from tree bark. we will connect it with medicalscience. differentiation is french "defferention", latin "differentia" difference, variety, that is, dividing the whole into parts, separating. integration of educational content is a world tradition (idea, thought, aspiration). an integrative approach reflects the objective integrity of systemic relations at different levels (nature society man). integration is about bringing together previously separated parts into a whole. it increases the level of integrity and organization of system elements. methods of integrated approach in primary education. teaching means the process of achieving educational goals in mutual cooperation through the mastering of certain educational material, learning activities and the teacher's pedagogical activities based on the organization and management of this process. the methods and methods of the integrated approach include: heuristic conversations; general conversations; excursions; demonstration methods of teaching; independent works; expressive reading of nature images in natural sciences; writing dictations and texts on natural sciences in mother tongue and reading literacy classes. world methodists who contributed to the formation and development of integrated teaching in primary education stable and huge reforms are being implemented in the education system of our country. in particular, didactic and methodist scientists, psychologists, pedagogues demand to focus on the problems of interdisciplinarity in improving the content and quality of education in general secondary schools. because of this, the rapid development of science and technology has turned the development of high american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 95 www.americanjournal.org spirituality, free and independent thinking, ideological-political maturity, faith based on a scientific worldview in students into an urgent problem. interdisciplinarity has great potential in developing these qualities in students to determining the goal that meets the age characteristics of primary school students and meets the requirements of the lesson ,mainly in the 19th and 20th centuries, in pedagogy, the idea of creating an integrated course of familiarization elementary school students with the natural environment appeared. m. n. skatkin in his research divided temporary interdisciplinarity into three types, between previously acquired knowledge and knowledge being studied, between learned knowledge and knowledge to be acquired in the future, simultaneously acquired knowledge to the connection between. about the spiritual-pedagogical nature and psychological-pedagogical connection of the didactic influence in the past pedagogy, k.d. ushinsky says: "the knowledge and ideas reported by any science should be given to the world and life in a broad look and illuminating way. must". n. m. verzilin and m. u. konsunskaya showed that interdisciplinary communication can be of two types: horizontal and vertical. scientists noted that horizontal interdisciplinary connection between subjects taught in one class, one quarter, and half a year, and vertical interdisciplinary connection is realized through the use of knowledge acquired in previous classes. in "primary education" magazines, great importance is attached to the problem of integration of school education. l.n. bakhareva in her article "integration of primary school training on the basis of local studies" states that "integration is the process of bringing together and connecting disciplines that are carried out together with differentiation processes, helping to create new, integrated knowledge it is a higher view that provides, implements interdisciplinary connections. r.a. mavlonova divided the integrative education into classes as follows. in particular, the integration of many disciplines can be called universal or general, replacing several basic system courses. for example, combining reading, mother tongue, science, drawing lessons into one common lesson. writing dictations and texts related to ichthyology. according to l. t. akhmedova : the integrated lesson is a specific and unique form of the lesson, which not only combines information from different subjects, but also saves time. b.s.abdullaeva's scientific research work is methodologically and didactically based on the fact that the provision of interdisciplinarity in the educational process is an urgent pedagogical problem. in the scientific research work of a.k. rakhimov, interdisciplinary connection was made, taking into account the content of the science "evolutionary doctrine". it envisages the use of methodological integration, that is, the use of special methods of scientific knowledge, since the science of "evolutionary teaching" is interconnected by the objects of study. references: 1. mavlonova r., rahmonkulova n. integration of primary education. tashkent. 2011. b.182. 2. norbotayev kh.b., shoykulova n. interdisciplinary environmental education. methodical guide. tashkent: "dezayn-press", 2012. p.106. 3. r.a. mavlonova. integrated pedagogy of primary education. study guide). t.: "ilm ziya" 2009. 192 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 3, | aug., 2022 p a g e | 34 www.americanjournal.org measuring the long-term equilibrium relationship among the interest rate, investment expenditure and gross foreign direct investment in iraq for the period (2004-2020) jamal hussein ali 1, yusra salim nayef 2, lojain arif ali 3 college of administration and economics, tikrit university 1 jamal.hussien.@tu.edu.iq, 2 yusraa533@tu.edu.iq, 3 lwjyn.a.ali16@tu.edu.iq a b s t r a c t k e y w o r d s most countries indiscriminately view investment as an imperative and a necessary tool for economic growth and effective management to promote the economy. after 2003, the iraqi economy entered a new phase represented by the trend towards the application of a free market economy and support for the private sector. accordingly, the iraqi state has enacted a number of investment promotion laws, perhaps the most prominent of which is investment law no. 13 (2006) and its subsequent amendments for providing an appropriate and attractive environment for foreign investment within the framework of economy and its variables. since investment of both types has clear effects on the level of its economic variables, this research aims at investigating the existence of a long-term balance among interest rates, investment expenditure and foreign direct investment (fdi), building the measurement model and verifying its quality, in addition to discovering and addressing the problems. the results revealed a long-term balance between the research variables, and the degree of adjusted r-squared coefficient was good represented by (73%). the measurement results indicated the lack of problems related to the model. direct investment in iraq, domestic direct investment, foreign direct investment (fdi) introduction most countries indiscriminately view investment as an imperative and a necessary tool for economic growth and effective management to promote the economy, with significant increases in production capacity and exploitation of human resources. however, managing and directing investments is the key and necessary aspect to serve economic development. the countries worldwide, regardless of their mailto:lwjyn.a.ali16@tu.edu.iq american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 35 www.americanjournal.org development levels, pay a great attention to investment as one of the most prominent motives of economic growth. after 2003, the iraqi economy entered a new phase represented by the trend towards the application of the free market economy and support for the private sector. therefore, the iraqi state has enacted a number of investment promotion laws, perhaps the most prominent of which is investment law no. 13 (2006) and its subsequent amendments for providing an appropriate and attractive environment for investment within the framework of macroeconomics and its variables, since investment of both types has clear effects on the level of macroeconomic variables. research problem most developing countries, including iraq, suffer from the problem of weak direct investment and domestic and foreign investment projects, which weakens the role of investment in the development of the iraqi economy. research objectives this research aims at: 1.investigating the stationarity of time chains of research variables. 2.verifying a long-term equilibrium relationship among interest rates, investment expenditure and direct investment. 3.building the measurement model and verifying its quality, in addition to discovering and addressing related problems. research hypothesis the research is based on the hypothesis that there is a long-term balance among interest rates, investment expenditure and direct investment in iraq. research significance the importance of research lies in the need to demonstrate the role of changes in interest rate and investment expenditure in changes in domestic and foreign direct investment and the important and clear consequences of these indicators on improving the effectiveness of investment by providing the appropriate investment environment in the iraqi economy. research method the research is based on the descriptive and quantitative method of studying the balance among interest rates, investment expenditure and direct investment. research organization the first section is about the theoretical framework of research variables; the second section is about measuring the effect of interest rates and investment expenditure on direct investment in iraq for the period (2004-2020). previous studies 1. al-samarrai, s. (2018) studied the impact of domestic investment on sustainable development in selected arab countries (egypt, jordan, lebanon) for the period (2000-2016) through considering american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 36 www.americanjournal.org the investment and development indicators in these countries. the study found that domestic investment in egypt recorded the highest value of annual growth in 2007, with an annual growth rate of (23.08%) million dollar. while the domestic investment in jordan recorded the highest value of annual growth in 2014 reaching (7827) million dollar. as for the domestic investment in lebanon, it recorded the highest annual growth value in 2016, with an annual growth rate of (11189) million dollar. 2. al-janabi, m. (2022) conducted a study on measuring and analyzing the impact of domestic and foreign direct investment on some macroeconomic variables in iraq during the period (2004-2019). the study aimed at analyzing the reality of domestic and foreign direct investment and its sectoral trends, in addition to measuring the impact of domestic and foreign direct investment on some of iraq's macroeconomic variables. the results showed a positive and reverse long-term equilibrium relationship, heading from the independent variables of domestic and foreign direct investment, banking proliferation, interest rates and exchange rates to the dependent variables of gross domestic production, unemployment, export and revenues inflation during the research period. the study proved the validity of research hypothesis. section one: theoretical background of research variables 1. the concept of investment according to the economic concept, investment is the productive employment of capital towards uses that lead to the production of goods or employment services by managing savings and satisfying the economic needs of society and increasing its well-being. alternatively, it is that part of non-consumed income with the aim of increasing production, which makes it achieve real additions in productive processes (al shabib, 2009: 17). conventionally, investment depends on the analysis of nations wealth and that wealth is concentrated in precious metals. additionally, adam smith did not mention the investment climate, but he differentiated between a closed economy that does not deal with the outside world and depends on internal resources, and an open economy that aims at increasing output, achieving a capital surplus and increasing capital additions (lotfi, 2009, 19). 2. investment objectives investment objectives vary depending on who is making the investment, as it may be to achieve the public benefit as in public projects carried out by the state (e.g., the establishment of a public hospital, university or school ... etc.), or to make a profit as in private projects. most of the studies on investment have focused on investment that aims to achieve an acceptable return accompanied by a certain level of risk. the most important objectives of investors can be summarized as follows (alwan, 2009: 35): 1. achieving a satisfactory return for the investment project that helps the investor to make a profit. 2. maintaining the value of real assets, i.e., maintaining the value of the investment project and the value of the original capital invested in the project. in order to maintain the value of the capital, it is necessary to choose the proposed investment alternative that achieves the largest return and the lowest degree of risk. the investor can maintain his investment assets through diversification of investments and the formation of investment portfolio so that the value of his assets (wealth) does not decrease over time by virtue of the increase in prices and their fluctuations. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 37 www.americanjournal.org 3. achieving the return (profit or income), as this is the general aim of investment. it is difficult to find an individual who invests his money whatever the type of investment without the aim of achieving profit or return, so that the value of assets at which the investor seeks to diversify in his investment areas is maintained. therefore, the value of his assets (wealth) does not decrease over time due to the factors of the increase in prices and their fluctuations, as the investor seeks to achieve future income and to create and develop wealth in the future (hardan, 2009: 16). 4. the investor must develop a comprehensive financial plan because the process of investing funds in different assets is part of a comprehensive financial decision and a plan that the investor will have to work on because such a plan will be the basis of capital safety. the first element that the investor must take into account is the amount of risk that s/he may be willing to accept. according to an efficient capital market environment, the risk tends to be closely linked to return. the investor's goal should generally be within the framework of risk and return, as the relationship between return and risk requires that the objectives set should not be only within the concept of return. this is due to that if these objectives are presented within this concept, this may lead to conducting investments with higher rates of risk than the normal investments. there are many tests that the investor can rely on when managing the investment to choose investment objectives, the most important of which are: risk and capital safety, current income against high capital value, investment time horizon, liquidity considerations, tax interests, and regulatory and legislative factors) (al-douri, 2010: 26-29). 3. the concept of domestic investment the world bank defines domestic direct investment as the gross capital formation (i.e., the gross capital formation previously). it consists of total expenditures on increasing the fixed assets of the economy, in addition to net changes in the level of stocks. in the case of capital formation, there are two different decisions: the first relates to determining the optimal level of capital, while the second relates to the rate of investment flows (hussein & ebadi, 2013: 431). domestic investment is particularly important as one of the main cornerstones of arab countries. undoubtedly, the economic potential of arab countries including resources, raw materials, agricultural land, labor and capital, as well as calls for national rally to rise up the values of accreditation and to request the promotion of integration into the regional and global economies from fair and balanced positions has led to the development of domestic investments (allam, 2015: 3). 4. determinants of domestic investment investment is the key to capital accumulation, which is the basis for any economic progress. domestic investment is determined by various factors affecting its effectiveness as follows (abdul adhim, 2007:15): 1. real determinants: refer to factors affecting the effectiveness of investment, such as high unemployment, fluctuations in economic growth, exports and domestic savings rates. 2. financial determinants: refer to exchange rate fluctuations and escalating external indebtedness. 3. direct markets determinants: refer to factors affecting investment directly or indirectly represented by the number of domestic and foreign companies, shares, bonds and stock turnover ratio. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 38 www.americanjournal.org 4. determinants relating to codifying or rationalization of domestic credit: refer to the availability of real exchange rate, foreign exchange, public investment, economic instability and the impact of the external debt burden. 5. the importance of domestic investment domestic investments play a key role in the economic growth of states and lead to increasing real shares of gdp for individuals and solving many problems, such as reducing unemployment in the labor market and reducing poverty. most of the previous studies found that domestic and foreign investment flows positively affect economic growth, through integration of production, or by increasing production through technology transfer. this is clearly manifested when fdi enters an economic sector where domestic investment is rare, so it presents a new product. according to the investment promotion act, the investment sectors of national priority are food products, pharmaceutical products, tourism, and informatics. the relationship between foreign and domestic investments appears to be more important in developing countries than in developed countries. in fact, fdi accounts for at most (15 %) of the world's total capital formation. this implies that domestic investment is behind the bulk of economic growth. although the value of foreign firms' investments is higher than that of domestic firms, yet the presence of large foreign companies in these countries may affect domestic companies and may sometimes keep them out of the market (abu murad, 2015: 4). 6. the concept and importance of foreign direct investment (fdi) fdi is defined as a direct investment in production in a country by a company located in another country. this is done either by purchasing a company in the target country or by expanding existing business operations in that country, with the aim of benefiting from cheap wages and benefiting from the privileges, facilities and tax exemptions granted by the host country government (allam, 2015: 76). the importance of fdi lies in supporting and promoting the country's economic growth by increasing macroeconomic production capacities and correcting its structural imbalances, closing the domestic savings gap needed to finance investment plan programs, as well as closing the gap in technological progress through the introduction of modern machinery and equipment. it also contributes to increasing employment opportunities, reducing unemployment rates, and finally helping foreign companies to open new export markets through their experience in this field (abu murad, 2015: 20). 7. investment expenditure investment expenditure refers to the amounts that the state spends in order to achieve an increase in production, such as expenditures for access to goods and services, which are called investment expenditures, when the state uses its purchasing power of public expenditures, resulting in its access to labor, goods and services. expenditure reflects the purchase or acquisition price of the commodity paid by the state for it, as the state receives an increase in national income, which is a direct increase in gross national product through the formation of a new production volume when measuring government expenditure (atlam, 1998: 84). investment expenditure is to obtain fixed capital from land stocks, buildings and other non-material assets, with the aim to expand production capacity to achieve economic growth, and is characterized by high flexibility and its response to fluctuations in the american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 39 www.americanjournal.org financial capacity of the state. such expenditure departs from the cyclical status of public expenditure classification, and is in line with the development of the states' role in the economy and its increased intervention at the economic and social levels. thus, government investment expenditure is capital expenditure because it aims to increase the national wealth of the state (al-wadi & azzam, 2007: 67). government investment expenditure includes all aspects of investment made by the state, which are in the form of infrastructure of productive roads, bridges and public projects that are not different in nature from private enterprises except as they belong to the public sector. it also includes all aspects of financial investment made by the state. this measure is a proof of the size of the state's intervention in economic activity, as it demonstrates the extent to which the state participates in the production process and the creation of new capital along with capital in the private sector (khalaf, 2008: 89). section two: measuring the impact of interest rates and investment expenditure on gross direct investment in iraq for the period (2004-2020) 1. study sample table (1) shows gross investment and some macro variables in iraq. table 1: gross investment and some macro variables in iraq year direct investment (million dinar) interest rates (%) investment expenditure (million dinar) 2004 843300 6.0 3014733 2005 1277635 7.0 4572018 2006 1290180 16.0 6027680 2007 1426310 20.0 7723044 2008 5395297 16.0 11880675 2009 4165900 8.8 10513405 2010 5589700 6.25 16130866 2011 7787950 6.0 17832113 2012 11382438 6.0 29350952 2013 13636128 6.0 40380750 2014 10926882 6.0 36731844 2015 6941800 6.0 18584676 2016 8896590 4.3 15894009 2017 8941300 4.0 16464461 2018 12220455 4.0 13820189 2019 13450212 4.0 24422523 2020 5865226 4.0 15216488 source: prepared by the researcher based on the data of the annual reports of the economic department of the national investment authority for various years during (2008-2020), separate pages. 2. variables included in the model there will be two types of variables: a. dependent variables: gross direct investment in iraq. b. independent variables: interest rates and investment expenditure in iraq. the variable symbols involved in this research: (y) is gross direct investment in iraq, (x1) refers to interest rates in iraq, and (x2) refers to investment expenditure in iraq. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 40 www.americanjournal.org 3. tests employed in the research in order to select the best methods, the following tests will be adopted: a. stationarity test it is one of the important tests in the stationarity of variables and the accuracy of the analysis results. based on the null hypothesis (h0), the time chain is non-static, while the alternative hypothesis (h1) stipulates that the chains are static and stable. dickey adjusted test was adopted, according to schwartz information criterion (sic) for adf test. through this test, the calculated and tabulated values were compared. according to the terms of this test, if the calculated value is greater than the tabulated value, the time chain will be stable and do not include root of unity, or through the significance of the t-test at the level (5%). otherwise, the time chain will be unstable and include root of unity (hamad, 2015: 153-154). b. co-integration test co-integration is defined as a match between two or more time chains so that fluctuations in one lead to the elimination of fluctuations in the other chain. co-integration is one of the methods used to detect the nature of the equilibrium relationship between the variables subject to this test, whether they are stable in the long-term. this requires these variables to be unstable at their level but have a degree of stability when taking the first or second difference. according to this test, the variable can be static if the integration score is equal to (0)1. there are two tests to determine the number of co-integration vectors, namely, trace test and maximal eigen value (hamad, 2015: 154-155). c. multiple linear regression equation (rahe, 2013: 227): y = bo + b1x1 +b2x2..............+bnxn +e where (bo) is the static function limit or parameter of regression line intersection with vertical axis of gdp; (bi) represent parameters of partial regression or partial tendencies; (e) is random error, which is the difference between the real value of (y) and the estimated value, and is known as the residuals and its general law is as follows: e = y-y^ the value (bo) represents the value (y) when the value (x1) and (x2) =0. d. f-test this test is used to determine the significance of the supposed linear relationship between independent variables (x1, x2,… xk) and dependent variable. it is based on two types of hypotheses (hadi et al., 2013, 344): null hypothesis: when the value of (f) is significant according to the indication used, it means that the hypothesis is accepted, which states that there are no significant differences between the variables in the measurement model, i.e.: h0: b1 = b2 = .....=bk = 0 alternative hypothesis: when the value of (f) is not significant according to the indication used, it means that this hypothesis is accepted, which states that there are significant differences between variables in the measurement model, i.e.: h1: b1 ≠ b2 ≠ .....≠ bk ≠ 0 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 41 www.americanjournal.org the value of (f) is calculated and compared to its tabulated value to determine the acceptance or rejection of null hypothesis and then to evaluate the significance of the estimated relationship in the model. e. t-test it is one of the best important tests used to test the significant differences between the variables included in the mathematical model and is represented by (1%) or (5%). it is used to evaluate the significance of independent variables (x1, x2, ....xk) individually in the dependent variable (y) in a multiple linear regression model. it depends on two hypotheses (amin, 2008:3): null hypothesis: when the value of (t) is significant according to the indication used, it means that this hypothesis is accepted, which states that there are no significant differences between the variables in the measurement model, i.e.: h0: b1 = b2 = .....=bk = 0 alternative hypothesis: when the value of (t) is significant according to the indication used, it means that this hypothesis is accepted, which states that there are significant differences between the variables in the measurement model, i.e.: h1: b1 ≠ b2 ≠ .....≠ bk ≠ 0 after calculating (t) value, it is compared with its tabulated value to determine the acceptance or rejection of null hypothesis and then to evaluate the significance of the estimated model. f. pearson test it is used when there are measurable quantitative variables, such as national income, national expenditure, gdp and other quantitative variables. the purpose of using this test is to determine the extent to which the variables in the measurement model are related, as it measures the relationship between independent variables and the dependent variable, as well as the relationship of independent variables with each other. among the conditions of this test is that independent variables are associated with the dependent variable with a stronger relationship than with each other; otherwise, this association becomes multiple, i.e., a measurement problem affecting the model. it is necessary that the relationship should be according to the economic theory where there is positive and negative results (hadi et al., 2013, 295). g. durbin-watson (d-w) test it is used to detect whether there is an autocorrelation in the model or not. its value is limited to (0-4), and the closer it is to number (2), it is better. this means that the model does not suffer from a problem of autocorrelation. it is based on two basic hypotheses (amin, 2008: 20): null hypothesis: which states the lack of autocorrelation (h0: p = 0). alternative hypothesis: which states the existence of autocorrelation (h1: p ≠ 0). h. r-squared coefficient test it is used to show the impact of the independent variable on the dependent variable. its value can be obtained from r-squared coefficient (r2). its value is between (0-1), the closer its value to the integer, this indicates the role of the independent variable in the change of the dependent variable. r-squared american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 42 www.americanjournal.org is used when there is one independent variable in the model, while adjusted r-squared is used when there is more than one independent variable in the measurement model (musa, 2016: 6). 4. the method used in building the measurement model ordinary least squares (ols) method is used in this study, which is one of the best ways to build the optimal model. it requires determining the nature of the relationship between the available data and the theoretical requirements in the economic variables involved in the formulation of the function, which assumes a number of conditions related to inputs and outputs. 5. estimating the measurement model a. the unit test of stationarity by augmented dickey-fuller (adf) test table 2: results of root of unity test for the measurement model variable calculated value degree of significance decision level the first difference at 1% at 5% at 10% x1 3.814 0.87 0.87 0.87 insignificant x1 3.548 0.00 0.00 0.00 significant x2 0.534 0.46 0.46 0.46 insignificant x2 3.126 0.00 0.00 0.00 significant y 0.522 0.47 0.47 0.47 insignificant y 2.698 0.01 0.01 0.01 significant source: prepared by the researcher based on the results of the statistical program eview12. based on the results of adf test, table (2) shows that the time chain is not static at the level, as the calculated (t) value is not significant at all significance levels. this indicates the problem of root of unity and that the time chain of the three variables are unstable at the level. however, after taking the first difference, the value of calculated (t) value is significant at all significance levels for all time chains. the time chain of the three variables (gross direct investment, interest rates and investment expenditure) in iraq is stable and all data are static at the first difference and there is no problem of root of unity. therefore, co-integration can be conducted with studying the long-term relationship. this means that it has a relationship with time, which is confirmed by the increasing values of the variables in question. b. johansen co-integration test this test requires the variables to be integrated with the same degree and linked to a long-term relationship. to achieve this, there must be two conditions:  all variables in the model are stable at the same level.  this level is greater than (0) 1. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 43 www.americanjournal.org table 3: results of johansen co-integration test of the measurement model trace test number of co-integration vectors (r) calculated value tabulated value at 5% significance r =0* 40.347 29.797 0.00 r =1 9.935 15.494 0.28 r =2 1.736 3.841 0.18 maximal eigen value number of co-integration vectors (r) calculated value tabulated value at 5% significance r =0* 30.412 21.131 0.00 r =1 8.198 14.264 0.35 r =2 1.736 3.841 0.18 source: prepared by the researcher based on the results of the eview12 program. table (3) presents the results of trace and johansen maximum value tests. it is clear that the hypothesis of the absence of co-integration vector at a statistical level (5%) is rejected, indicating the acceptance of the alternative hypothesis that there is co-integration of zero rank for trace test. the calculated value (40,347) is greater than the tabulated value, which is 29,797 at a significance level of (5%). in addition, the hypothesis that there is no co-integration vector at a statistical level (5%) is accepted, i.e. the alternative hypothesis that there is a co-integration of (1) rank of trace test is rejected. the calculated value (9.935) is smaller than the tabulated value (15,494) at significance level of 5%. it is clear that the hypothesis that there is no co-integration vector at a statistical level of 5% is accepted, i.e., the alternative hypothesis that there is co-integration of rank (2) of trace test is rejected, as the calculated value (1.736) is smaller than the tabulated value which reached (3.841) at a significance level of 5%. the method of maximum value shows a co-integration of rank (0) by observing the calculated value (30.412), which is greater than the tabulated value (21,131) at a significance level of (5%). moreover, the hypothesis that there is no co-integration vector at a statistical level (5%) and that there is no cointegration of rank (1) to test maximum value is accepted, as the calculated value (8.198) is smaller than the tabulated value (14.264) at a significance level (5%). it is also clear that the hypothesis that there is no co-integration vector at the statistical significance level (5%), and the absence of a cointegration of rank (2) to test of maximum value is accepted, as the calculated value (1.736) is smaller than the tabulated (3.841) at a significance level (5%). accordingly, the variables represent a set of zero rank by using the third suggestion, which provides for a constant and slope of the co-integration function according to johansen test. as two periods of slowness were chosen, this clarifies the presence of co-integration. therefore, there is a long-term equilibrium relationship between gross direct investment in iraq as a dependent variable and interest rates and investment expenditure as independent variables. c. estimating the equation of multiple linear regression of measurement model by using the available statistical data and their introduction into eview12 statistical testing program, adopting the normal approach to such data, representing gross direct investment in iraq as a dependent variable, interest rates as a first independent variable, and investment expenditure as a second independent variable, the following multiple linear regression equation was obtained: american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 44 www.americanjournal.org y = b0 + b1x1 b2x2 + e y = 5094263 305267.6 x1 + 0.264917 x2......... 1 statistically, equation (1) clarifies that the function constant reached (5094263), representing the value of (y) when the value of both x1 and x2 is equal to zero. while the function slope of the first independent variable (x1) reached (-305267.6). this means that increasing x1 by one unit will result in decreasing y by (-305267.6), i.e., there is a reverse relationship between x1 and y. the function slope value of the second independent variable x2 reached (0.264917). this means that increasing x2 by one unit will result in increasing y by (0.264917), i.e., there is a direct proportionality between x2 and y variables. economically, the values of regression equation revealed that the value of gross direct investment in iraq is (5094263) million iraqi dinars when interest rates and investment expenditure are equal to zero, which is a positive value indicating that any decrease in these variables has a negative impact on gross direct investment. when interest rates increase by (1%), this means a decrease in gross direct investment in iraq by (-305267.6) million iraqi dinars, leading to a decrease in the contribution of interest rates to the growth of gross direct investment by the same amount. when investment expenditure increases by one million, gross direct investment in iraq will increase by (0.264917) million iraqi dinars. this increase results from directing investment expenditure towards infrastructure development projects, which in turn will create an appropriate investment environment and reduce investment costs. this will therefore encourage domestic and foreign investors towards productive investments, i.e., direct investments instead of unproductive financial investments. table 4: quality standards of measurement model quality standards of model value significance adjusted r-squared 0.7334 ---- t-b0 2.770 0.01 t-b1x1 2.436 0.03 t-b2x2 4.347 0.00 d-w 1.252 ---- f 21.639 0.00 source: prepared by the researcher based on the results of the eview12 program. the results of estimated model in table 4 showed that the value of the adjusted r-squared (adj r2) was (0.7334), which means that the two independent variables (x1,x2) explain about (73.34%) of the change in the dependent variable (y), and the remaining (26.66 %) represents the effect of other variables not included in the equation (multiple linear regression function). it is clear that interest rates and investment expenditure in iraq explain about (73%) of the change in gdp and the rest (26.66%) represents economic variables and activities that are not included in the measurement model, including inflation, unemployment, exports, imports and other economic variables that affect gross direct investment. based on results in table (4), t-value of the calculated b0 (2.770) was greater than the tabulated value at a significance level (5%) and a degree of freedom (14) reaching (2.1315). accordingly, null hypothesis (h0: b0 = 0) is accepted and alternative hypothesis (h1: b1 ≠ 0) is rejected. this means the significance of the estimated parameter. t-value of the calculated (b1) (-2.436) is greater than the tabulated value at a significance level (5%) and a degree of freedom (14) reaching (2.1315). american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 45 www.americanjournal.org accordingly, null hypothesis (h0: b0 = 0) is accepted and alternative hypothesis (h1: b1 ≠ 0) is rejected. this means the significance of the estimated parameter (b1), which represents slope of the variable (x1). this indicates the impact of this independent variable on the dependent variable, i.e., interest rates have an impact on gross direct investment in iraq. t-value of the calculated (b2) (4.347) was also higher than the tabulated value at a significance level (5%) and a degree of freedom (14) reaching (2.1315). accordingly, null hypothesis (h0: b0 = 0) is accepted and alternative hypothesis (h1: b1 ≠ 0) is rejected. this means the significance of the estimated parameter (b2), which represents slope of the variable (x2). this indicates the impact of this independent variable on the dependent variable, i.e., investment expenditure has an impact on gross direct investment in iraq. based on results in table (4) revealed by the d-w test, whose calculated value (1.252), it is moving away from number (2) and is located between (dl=1.02) and (du=1.54), i.e., in the rejection zone of the tabulated value of the research sample, which amounted to (17) views, i.e., (df=14), and two independent variables, i.e., (k=2). so, the decision is failure, i.e., not determined, because it falls in the area of indecisiveness, i.e., it is not clear whether there is a problem of autocorrelation between the research variables or not. the results in table (4) show that the calculated f-value was (21,639), which was greater than the tabulated f-value at a significance level (5%) and a degree of freedom (2.14) for numerator and denominator amounted (3.74); therefore, null hypothesis (h0) is accepted and alternative hypothesis (h1) which provides for the significance of the estimated relationship is rejected. in other words, there is at least an impact of one of the variables (x1, x2) on the variable (y), i.e., interest rates and investment expenditure are linked to gross direct investment in iraq significantly with a clear impact among them (sig = 0.000). this shows that the significance level is higher than (0.01), making the model efficient and reliable for planning and predicting the future in terms of increasing investment projects permitted by the national investment authority, whether it is for local investors or by reducing interest rates and increasing investment allocations in the state budget. table 5: contrast analysis (anova table) f test mean of sum squares (mss) degree of freedom (df) sum squares (ss) source of variance (sov) 21.639 1080001.5 2 2160003 clear deviations on regression line (x1, x2) (sse) 49909.9542 14 3564.99673 unclear deviations (residuals) (ssr) 16 2163568 total deviations (sst) source: prepared by the researcher based on the results of the statistical program eview12. table (5) clarifies the value of deviations described by the multiple linear regression of variables (x1.x2) reaching (2160003) with an average (1080001.5). while the value of residuals was (3564.99673) and their total was (2163568) with an average (49909.9542). through those results, the value of f test was obtained and it was identical to its value in table (4). this clarifies the significance of the estimated relationship. in other words, there is at least an effect of one of the variables (x1, x2) on the y variable. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 46 www.americanjournal.org d. pearson test the absence of a multiple correlation problem in the estimated model can be demonstrated by the partial correlation matrix, which shows how the dependent variable relates to the independent variables as well as how independent variables relate to each other, as the closer their value to the integer, the stronger the relationship between variables. table 6: results of pearson test of measurement model y x1 x2 y 1 -0.658 0.814 x1 1 x2 0.452 1 source: prepared by the researcher based on the results of the eview12 program. table (6) shows that the dependent variable (y) has a strong negative relationship with the first independent variable (x1), as it approaches the integer reaching (0.658), but it has a strong positive relationship with the second independent variable (x2), as it approaches the integer reaching (0.814). however, there was a negative relationship between the independent variables (x1, x2) and smaller than their relationship individually with the dependent variable, where the ratio of the relationship between them reached (-0.452). this indicates the lack of multiple correlation problem, which assumes that the value of the relationship between independent variables individually with the dependent variable should be greater than their relationship with each other. therefore, both interest rates and investment expenditure in iraq have a significant positive relationship with gross direct investment in iraq, which is a greater relationship than that with each other. conclusions 1. the research hypothesis, saying that there is a long-term equilibrium relationship among interest rates, investment expenditure and gross direct investment in iraq, was proven. 2. the results of regression equation and its parameters proved that the relationship of the dependent variable with independent variables is consistent with economic theory, as it is negative with interest rates and positive with investment expenditure. 3. interest rates and investment expenditure have a clear impact on direct investment in iraq, as demonstrated by the results of the t test and their significance, which is less than (1 %). 4. the estimated model does not suffer from the problem of multiple correlation where the relationship between independent variables is weaker than that with the dependent variable individually, which is consistent with standard and economic theories. 5. based on the results of the model, all of which are consistent with economic theory, the estimated model is efficient and reliable for planning and predicting the future in terms of coordination between interest rates and investment expenditure with the aim of raising the level of direct investment in iraq. recommendations 1. reducing interest rates to the lowest possible level and facilitating bank loan procedures, especially for the local investor, which helps to raise the level of direct domestic investment. 2. facilitating foreign direct investment laws, which helps to bring administrative and technological expertise into the country and increases the contribution of investment to economic growth. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 47 www.americanjournal.org 3. increasing investment expenditure at the same percentages of the time chain in order to achieve increases in the productive structure of economic sectors aimed at producing investment and consumer goods. 4. combining a certain percentage of these macroeconomic variables, which contributes to increase gross investment that can be relied upon in the future. references 1. abdul adhim, h. (2007). fiscal and monetary policies: a comparative study of descriptive thought and islamic thought. university press, egypt. 2. abu murad, m. (2015). a distinction between domestic investment and foreign investment in jordan during the period (1980-2013). studies, yarmouk university, college of management, economics and administrative sciences, jordan. 3. al-douri, m. (2010). investment management and investment portfolios. ethra'a for publishing and distribution, amman, jordan. 4. allam, m. (2015). domestic and foreign investment and global investment report. al-ahram, issue 47005, www.ahram.org.eg 5. al-shabib, d. (2009). investment and investment analysis (1st ed.). al-yazuri scientific press for publishing and distribution, amman, jordan. 6. al-wadi, m. hassan & azzam, z. (2007). principles of public finance (1st ed.). al-masirah press, jordan. 7. alwan, q. (2009). investment management between theory and application (1st ed.). culture press for publishing and distribution, amman, jordan. 8. amin, o. (2008). statistical analysis of multiple variables using spss program. university of menoufia, faculty of commerce, department of statistics and sports, cairo, egypt. 9. atlam, b. (1998). public finance: its technical instruments and economic effects (5th ed.). library of literature, cairo, egypt. 10. hadi, a., al-taie, k., & al-shakri, a. (2013). applied statistics: analytical method using spss (1st ed.). al-dhaker press for publishing and distribution, jordan. 11. hamad, m. (2015). government expenditure and its impact on human development in algeria since 1994. a dissertation in economics, cairo university, institute of african research and studies, egypt. 12. hardan, t. (2009). investment fundamentals (1st ed.). future press for publishing and distribution, amman, jordan. 13. hussein, r. & ebadi, m. (2013). the impact of economic variables on direct domestic investment in algeria: a measurement study for the period (1989-2009). studies, management sciences, vol. 40, issue 2, algeria. 14. khalaf, f. (2008). public finance (1st ed.). world of modern book, wall for scientific book, jordan. 15. lotfi, a. (2009). arab investments and the future of arab economic cooperation. arab organization for administrative development, cairo, egypt. 16. musa, y. (2016). unpublished lecture on standard economics. faculty of management and economics, tikrit university, iraq. 17. rahe, m. (2013). financial expansion and fiscal policy trends in iraq for the period (1951-2010). a dissertation in economics, faculty of management and economics, kufa university, iraq. http://www.ahram.org.eg/ american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 6 www.americanjournal.org key aspects of the theory of digital transformation of business processes azamat davletyarov director of the graduate school of business and entrepreneurship, adavletyarov @ mineconomy. uz dilmurod suyunov professor, head of the department of theory and practice of corporate governance, graduate school of business and entrepreneurship, sdx 2161@ gmail. com aman kenzhabaev professor, head of the department of marketing and digital economy, higher school of business and entrepreneurship, amankenja059@gmail.com a b s t r a c t k e y w o r d s in the article and study the methodological aspects of the digital transformation of business processes of enterprises. the analysis of foreign experience in the methodology of digital transformation of business processes of organizations was carried out. proposals and recommendations for the methodology of digital transformation of business processes have been developed. digitalization of business, digital process, digitalization of enterprises, digital technologies. introduction in recent years, private entrepreneurs, companies, enterprises and organizations in most countries have been optimizing costs, increasing profitability, establishing exports, improving the quality of products, goods and services sold using digital technology. in addition, recent events in the world, especially the covid-19 pandemic, have shown the importance and necessity of digital transformation of business processes. as president sh.m. mirziyoyev , one of the priorities of the consistent socio-economic development of uzbekistan is the widespread introduction of information, communication and digital technologies. it is digital technologies that are the effective tool that can ensure the qualitative reform of economic sectors and spheres of public life. in the address of the president sh.m. mirziyoyev to the parliament and people of uzbekistan in 2020, the issues of digital development were given. it is also symbolic that 2020 in uzbekistan was declared the year of the development of science, education and the digital economy. inventions and mass use of even the simplest mechanisms and devices subsequently served as the basis not only for the emergence of other more complex developments, but also seriously influenced the mailto:amankenja059@gmail.com american journal of business management, economics and banking volume 11 april, 2023 p a g e | 7 www.americanjournal.org development of the economies of countries, society and social relations in general. a powerful breakthrough was made by computer technology. as you know, the first computers occupied a large area, weighed tons, and had a small set of functions. the situation changed dramatically with the advent of the integrated circuit, which was based on transistors, diodes, resistors, as well as a processor with a ready-made programmed algorithm. thanks to this microcircuit, the computer began to go crazy on a regular table. time passes, people's views change, scientific and innovative ideas contribute to the constant improvement and updating of technology, the emergence of new modern products. the 21st century was marked by the rapid development of digital technologies, without which today it is difficult to imagine the future of spheres of life of society or sectors of the economy. current consumers, customers prefer to receive high-quality goods and services as quickly as possible, in the minimum distance and having a choice of payment in any form. literature review a number of publications have been published by foreign scientists, economists and experts who have been studying the digital economy and methodological aspects of the digital transformation of business processes for many years. of interest are the works of n. hanna1, m. pratt 2, d. sparapani, n. fenwick3, r. kinzyabulatov4 and others. they outline the theoretical foundations and practical experience in the field of the digital economy, as well as the digital transformation of business processes of enterprises and organizations in europe, asia and russia. issues regarding the digital transformation of business processes of enterprises and organizations are described in detail in the joint research work of s. kraus5, p. jones, n. cuyler, a. weinmann, n. chaparro-banegas, n. roig-tierno. also, the research of domestic scientists is devoted to increasing the competitiveness of the national economy of the republic of uzbekistan in the digital economy, improving the theoretical and practical aspects of the digital economy, as well as the introduction of digital technologies in public administration. research related to the use of information technology in the economy of uzbekistan was carried out by such scientists as s.s. gulyamov, t.s. kuchkarov, a.t. kenjabaev, a.t. shermukhamedov, i.e. zhukovskaya, t.sh. chodiev and others. these studies of domestic scientists have made a huge contribution to the development of the digital economy. in countries with developed and developing economies, digital technologies are actively integrated into socio-economic relations. what a few decades ago was possible mainly theoretically today is 1hanna n. a role for the state in the digital age. journal of innovation and entrepreneurship 7, 5 (2018). url: https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-018-0086-3/ ( date circulation : 22.04.2022). 2 pratt m., sparapani j. [definition] what is digital transformation? url: https://www.techtarget.com/ searchcio /definition/digital-transformation/ ( date circulation : 22.04.2022). 3 fenwick n (forrester) . digital business: transformation, disruption, optimization, integration and humanization. url: https://www.i-scoop.eu/digital-transformation/digital-business/ (accessed 22.04.2022). 4 kinzyabulatov r. what is a business process and a description of a business process . [electronic resource]. url : https :// habr . com / ru / post /342448/ (date of access: 04/22/2022). 5kraus s., jones p., kailer n., weinmann a., chaparro-banegas n., roig-tierno n. 2021. " digital transformation: an overview of the current state of the art of research ," sage open , vol . 11(3), pages 21582440211, september. https://nastroyvse.ru/devices/laptop/kak-vybrat-processor-dlya-noutbuka.html https://nastroyvse.ru/devices/laptop/kak-vybrat-processor-dlya-noutbuka.html https://nastroyvse.ru/devices/laptop/kak-vybrat-processor-dlya-noutbuka.html https://innovation-entrepreneurship.springeropen.com/ https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-018-0086-3/ https://www.techtarget.com/contributor/jason-sparapani https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ https://www.techtarget.com/%20searchcio/definition/digital-transformation/ http://www.forrester.com/nigel-fenwick?intcmp=blog:forrlink https://www.i-scoop.eu/digital-transformation/digital-business/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://habr.com/ru/post/342448/ https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/s/sae/sagope.html american journal of business management, economics and banking volume 11 april, 2023 p a g e | 8 www.americanjournal.org widely used in practice. entrepreneurs often think, especially at the time of the formation of a strategy, about measures that contribute to the comprehensive growth of the business, updating weak functional links. methods and analysis theoretically, the digital transformation of the business processes of an enterprise is within the framework of management, therefore, the experience, skills and competencies of top managers are important here. as leaders, they are required to understand the weak, inefficient areas of the company's business process. have clear information about the current state of affairs, substantiate, with the help of specific calculations and calculations, the need for digital transformation. also have a vision of possible results based on the results of digitization. there are many positive aspects of digital transformation of business processes. we list the most effective of them: 1. opportunity to enter new markets. 2. increase productivity by automating processes. 3. improved employee experience. 4. continuous improvement of business processes and customer relationships. let us explain these aspects. the opportunity to enter new markets will allow companies to increase the volume of trade or the provision of services. if these are foreign markets, accordingly, there will be an opportunity to earn in foreign currency. increase productivity by automating processes. digitization of processes will reduce the time spent on production, improve the quality and volume of manufactured goods. improved employee experience. having skills and experience, employees do not have to work all in one place. the form of remote work has proven itself well, and some employers are willing to use a hybrid form. the emphasis is mainly on the results of the work of each specialist. continuous improvement of business processes and customer relationships. if a company does not innovate its processes from time to time, then it is unlikely that it will be able to increase its customer base. consumers tend to choose, they opt for options that best satisfy their desires and demand. one of the key aspects of the digital transformation of business processes is investing in the right technologies, that is, in those technological solutions that will suit and be useful specifically for your business. in this matter, you should be as prudent as possible, because the wrong technology will ultimately only harm your business. inappropriate technologies will also have a negative impact on the course of the company's business processes. simply, the money spent on the purchase of inappropriate equipment will be thrown into the street. some enterprise managers in the process of choosing technologies give preference to well-known brands, more promoted or advertised models, and also rely on popularity in terms of sales. although in this case it is necessary to think about those technological solutions through which it will be possible to achieve the goal. technologies were chosen, bought, brought and installed. as a result, over time, we will notice that team members and other employees of the enterprise almost do not use these technologies, besides, poor integration with it equipment of other departments will ultimately lead to unnecessary cost and inefficiency of the entire company. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 9 www.americanjournal.org the digital transformation of business processes consists of the following steps: 1. determination of conversion goals. at the beginning of transformation planning, you need to have a clear idea of the goals. 2. establishment of baselines. create a list of measurable indicators to justify the success of the project. 3. involvement of all stakeholders. talk to team members to find out the weaknesses of the process, as well as the preferences and expectations of new ones. 4. preparing the best script. with the help of diagrams, you need to create an optimal workflow path that will include the human and system tasks necessary to complete. 5. testing. create a process test model with a bpm program to test the interoperability between people and data. 6. creation of conditions for online monitoring. to begin with, small teams need to be involved in the process in order to be able to observe the slightest changes that can affect the result. most business leaders are wondering when is the right time to transform business processes? this is done in the following cases: if the number of competitors grows if decisions are made only on experience and status, without regard to data if there are small non-automated operations if your competitors are faster than you if the current process does not meet business requirements if profitability falls if there is a protracted nature in the adoption and implementation of the decision if the company's it system is outdated if net income declines if there are many errors in the process if the surrounding technology is updated if your current corporate organization is not efficient. due to the fact that each company is individual in its own way, no one can guarantee the successful outcome of the digital transformation of the business process. research by influencers such as mckinsey and harvard business review has shown us that up to 70% of business and digital transformation initiatives fail. but if you dig a little deeper, you'll find that it's not new technologies or business innovations that are actually defects. weaknesses lie in poor planning, poor communication and change strategies, and a general inability of leaders and project managers to engage and gain support from all teams affected by the change. in other words, of the three main areas of digital transformation mentioned above, "cultural transformation" is often the least talked about, but in fact it may be the most important of all6. in 2020, oxford economics conducted an extensive survey of over 3,000 executives from 10 of the world's largest industries. they found that business transformation works best “when every part of an organization, including its external partners and customers, is agile and connected. leaders need to 6 business technology fundamentals : what is digital transformation? url: https://www.sap.com/insights/what-is-digital-transformation.html/ ( date circulation : 12.04.2022). https://kissflow.com/workflow/bpm/best-bpm-software/ https://www.mckinsey.com/about-us/covid-response-center/mckinsey-live/webinars/the-secrets-to-transformation-success https://hbr.org/2013/04/change-management-needs-to-cha https://www.sap.com/documents/2020/08/ae963d28-aa7d-0010-87a3-c30de2ffd8ff.html file:///c:/users/a.kenjaboyev/downloads/business%20technology%20fundamentals https://www.sap.com/insights/what-is-digital-transformation.html/ american journal of business management, economics and banking volume 11 april, 2023 p a g e | 10 www.americanjournal.org ensure the flow of high-quality information throughout their business ecosystem, allowing all participants to interact in a way that contributes to the achievement of the organization's goals7. so what are the causes of unsuccessful transformations? unfortunately, there are many such reasons, but almost all of them are related to the three digital transformation challenges of people, communication and measurement. conclusion the success or failure of the digital transformation of business processes depends on people, culture is also closely interconnected with people one of the drivers of digital transformation. poor communication between management and team members in most cases negatively affects the progress of the transformation project. for example, managers should share their ideas and initiatives with employees of the enterprise, listen to their opinions, advice and recommendations. digital transformation implies the introduction of innovations, which means there will be changes in real processes. now, to measure the effectiveness of the results of one (kpi) will not be enough, you will need to additionally include tools for evaluating the effectiveness. literature 1. zru-328 "on guarantees of freedom of entrepreneurial activity" dated may 2, 2012 2. pp-4642 "on measures for the widespread introduction of digital technologies in the city of tashkent" dated march 17, 2020. 3. kraus s., jones p., kailer n., weinmann a., chaparro-banegas n., roig-tierno n. 2021. " digital transformation: an overview of the current state of the art of research ," sage open , vol. 11(3), pages 21582440211, september. 4. kenzhabaev a.t., ikramov m.m. prospects for the development of ict and e-government in the economy of uzbekistan // economics, statistics and informatics, 2015. no. 2. 221-223 b. 7 there same . https://whatfix.com/blog/digital-transformation-challenges/ https://whatfix.com/blog/digital-transformation-challenges/ https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/a/sae/sagope/v11y2021i3p21582440211047576.html https://ideas.repec.org/s/sae/sagope.html american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 1 www.americanjournal.org the role of turquoise mine in middle asia shakhnoza ashurova doctor of philosophy in philological science (phd), docent, business english teacher of the graduate school of business and entrepreneurship ashurovashani@mail.ru a b s t r a c t k e y w o r d s this article talks about the turquoise mine located in the ancient ilaq and its place in the civilization in the formation and gradual development of the central asian civilization. in addition, scientific research and views of many archaeologists and scientists on the study of the mining and mining industry in the regions are presented in order of importance. mine, turquoise, society, mountain, ilaq, aqtoproq, ungurlikon, archeology.. introduction minerals play a major role in the economic and political history of society. all human production activities, from the creation of stone tools to the production of the most complex machines, are connected with their use. the use of ore minerals, according to f. engels, was one of the revolutionary turns in the life of society. from this it becomes clear how important the study of the use of minerals is for the history of society. it allows to identify historical sources, as well as to study the production activity of miners by its material traces mines, dumps, ore enrichment centers, smelters, slag, finished products, various tools and household items. the production objects and volumes of the country, the nature and direction of work, the level of technology and technology, the composition of the workforce and, in general, the level of productive forces and the economic role of certain regions, that is, the most important, allow us to get answers to questions that remain unknown (if based only on information from written sources). it is known that the possibilities of mining and processing some minerals were not the same in different periods. in this article, we want to consider the origin and history of the ancient ilak turquoise. if we look at the archaeological research, it shows that the extraction of turquoise continued from the early centuries ad to the middle ages. in the past, excavation works in the mine were carried out in the volume of more than 300 thousand m3, which allows ungurlikon to be included among the largest mines in ilaq. in chinese sources, information about the mining of the famous blue stone-se-se on a high mountain on the eastern side of the choch capital is related to ungurlikon. feruza "triumph stone" was one of the rarest products in ancient times. choch is the largest supplier of this product on the great silk road. it is assumed that feruza's ancient turkic name chach (ses) gave its name to the estate and then to its capital in the first half of the 1st millennium ad (yu.f. buryakov). beruni called it ilaq turquoise and noted its high quality and high price. by this time, the mine finished its activity. pure sky-blue turquoise is considered one of the precious stones, and the mineralogist beruni of the 11th century gave very interesting information: "i saw ilok turquoise, its weight was 200 dirhams, and american journal of business management, economics and banking volume 11 april, 2023 p a g e | 2 www.americanjournal.org i valued it at that time at 50 dinars, but because the ilok mine was dry and abandoned, now its price was two hundred dinars. the last part of this phrase is not completely clear to this day it is difficult to know whether the reserves of the ilok mine were exhausted at the time when beruni wrote his work, or whether this was an addition of later scholars, but one thing is clear that in the middle ages, the "stone of victory" turquoise was mined in the ilok mines. based on facts. on the western coast of karamazar, there is even a place called firuzakon a "turquoise mine", but the size of the ancient works there is not very significant and has not attracted the attention of ancient researchers. in ilaq region, unique large deposits of turquoise stone were found in ungurlikon, okpuproq, konimansur, la'l stones in badakhshan mountains. during the research, geologists and archaeologists paid attention to the strange structure of ore rocks in the large deposits of aktoproq and ungurlikon. they were found to be gold, but low quality turquoise was also found in their dumps. ancient choch (shosh), i.e. ancient tashkent oasis, is one of the largest regions of central asia. choch, which is surrounded on three sides by the chotkal-kurama mountain ranges, adjacent to the karamozor hills of snowy tyon-shon with sky-high snow, has a great potential for farming. fertile lands of chirchik and okhangaron oasis, serot pastures consisting of mountain hills, regions with beautiful landscapes of foothills and steppes, as well as lowlands on the left bank of syrdarya served as the main source of economic development of the oasis. in particular, the mineral deposits in the mountains, which are closer to the original and non-ferrous metals and precious stones, played an important role in strengthening the economic potential of choch. mining of these underground resources (gold in koshbulok, silver in lashkarak, turquoise in ungurlikon) was actively started in ancient times. turquoise is a mineral. chemical composition sia16[ro4]4(on)84n2o. triclin crystallizes in syngonia. hidden crystalline solid masses, bud-like aggregates, pustules, veins are formed. depending on the structure of mineral aggregates, it has a hard and soft appearance. the color of solid turquoise is blue and sky blue, changing to green, brownish green and brown. soft turquoise is found wet, hardens when dried. the color is liquid, light purple, light green and light green. hardness 5-6, density 2.6-2.8 g/cm3. dull, dull, waxy. turquoise is a hypergene mineral found in the oxidation zone of copper deposits and in quartz veins and weathered quartz porphyries. turquoise is found in association with kaolin, galluasite, jarosite, alunite, opal, barite, chrysocols. it is used as a precious stone in jewelry. it has been known in uzbekistan for a long time. it has been valued as a precious stone in eastern countries. for a long time, central asia has supplied other countries with feruza. the largest mine is nishapur (iran), f. in uzbekistan. it is found in central kyzylkum and kurama, karatepa, sultan uvais mountains. located mostly on the right bank of the nakpaysay, the entire area includes the akjen mountains, dotted with ancient monuments, as well as low terraces along the stream. they penetrate to a depth of more than 70 m and reach underground waters. the total length of the akdjen-oktoprokh strip, which was developed in antiquity, is 2.5 km. as in other mines, the ancient miners of aktoprokh selected the ore and went exactly along the hill, and their work exactly repeated the shape of the ore bodies. in order not to install special fasteners, pillars of ore rocks were preserved in some places of the houses to hold the roof. several broken stone hammers and potsherds were found on the hillsides and near the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 3 www.americanjournal.org rock piles. among the dishes, bowls covered with white-green and blue glaze were found, which were identified as belonging to the 10th-12th centuries. for many years, there has been a debate among geologists about what was mined in aktoprokh, many of them argued that gold was mined. b.n. nasledov, a great scholar of karamaozor, said that they may have even mined copper along with gold. a.b. balatov and a.d. kalenov emphasized that in the ancient works, not gold and copper, but turquoise was developed. archaeologists were also involved in this process, and according to the analysis of ore rocks and abandoned columns, it was determined that the main object of extraction is gold, which can be mined up to 3000 kg. however, the debate cannot be considered completely concluded in favor of gold. according to some finds, they were found only in the vicinity of the mines where the turquoise mine was located. one such find is a 13 m long quarry, which was used as a porch. the outer surface was covered with turquoise, which was of very poor quality, and over time it was contaminated with iron oxide, but on the lower part there were samples of pieces of sky-colored turquoise. this means that the ancient miners blew the "pockets" and dumped the low-quality minerals in the dumps and dug up the pure pearl. in terms of materials and appearance, such findings are considered to be younger than gold and are believed to belong to the 16th and 17th centuries. we can find out from random sources whether turquoise was mined by the rulers of tashkent at that time, such sources can be found in the story of a tajik writer of the 16th century. when zayniddin vasifi came to tashkent in 1540, sheikh said shamsiddin muhammad came to tashkent khan navroz. as a good calligrapher, vasify suggests that the khan draw up a deed on giving all vacant lands and mines belonging to tashkent to said as the water manager, and the calligrapher cites such lines as "except for turquoise and iron mines", as it can be seen that in those days, turquoise and iron excavated in the 16th century. in that period, turquoise was mined in aktoprokh. however, this information is confirmed to be the source of information about the existence of the mine 500 years after beruni's announcement of the mine. so, ilaq's turquoise mine should be looked for elsewhere. here we are back to the mysterious ungurlikon, located on the banks of the pistalisoy tributaries, the left tributary of ohangaron flowing into abjaz. more than 30 ancient deposits are concentrated here on an area of 0.5 km2, which are grouped into three clusters. the western and central deposits extend in the interradial direction, while the deposits located on the eastern side are scattered randomly. general analyzes show a high content of iron, aluminum and a number of non-metallic minerals. ungurlikon is the most important turquoise mine of choch state. it is located on the northern slope of the kurama mountains, 3 km west of the village of abzhoz, along the ungurlisoy and pistalisoy reservoirs and the left tributary of the okhangaron river, at an altitude of 1000 m above sea level. cadmium deposit consists of quartz porphyrites with turquoise. it consists of two fields (eastern and western), which included mines of several years and maida. some geologists, for example, a.b. batalov, assumed that turquoise could be mined here in ancient times. however, on the surface, this mineral was of such low quality that b.n. nasledov emphasized the mysterious nature of the deposit and said: "it seems incredible that ungurlikon rocks were mined in ancient times only to extract low-quality turquoise." and later, when traces of gold were found in the analysis, they believed that this noble metal was the main mining object of ancient people, and its mining was carried out centrally, and it was the main part of ore processing and enrichment. since the american journal of business management, economics and banking volume 11 april, 2023 p a g e | 4 www.americanjournal.org latter was not so reliable, geologists returned to the study of the mine. archaeologists were also involved in the work, as they suspected the presence of waste rock typical of gold mines. geologist s.v. lopatin identified development rocks at a depth of 20 m, which is an area of 16,000 m2. more than 300,000 m3 of turquoise zones 1-2 m thick, occupied by ancient mines, proved the existence of a source of large-scale ancient developments. fragments of vessels dating back to the x-xii centuries were found here. exploration of this mine will continue. we cannot say that the ilaq mines are fully explored today, although it is difficult to imagine that the ilaq turquoise is known without the largest turquoise mine located in karamazor. there are also cited sources, from which we will quote one more piece of information. 3.5 km northeast of konsoy, on the northern slope of jidasoy, there are preserved turquoise mines, called firuzakan by the people. the deposits are exhausted, but the remains are important. there are thin veins of poor quality turquoise on the abandoned remains and sides of the finished mine. in 1874, g. d. romanovsky", studied by scouts since 1963; archeological research conducted by e.b. pruger". four developments are noted in this. the largest is a right-angled quarry measuring 110x15 m, the second is round with a diameter of up to 15 m, the third is oval -30x15 m, and the fourth is 12-15 m in diameter. the materials belong to the 9th-12th centuries. in general, the konsoy site can be considered as a mining site not only for polymetallic ore (mainly silver), but also for iron and small-sized precious stones. very interesting finds were found in konsoy. in 1936, during the cleaning of the abandoned mines, ancient iron clamps and an ax with a double-edged blade were found. its length is 12 cm, the width of the working part is 5 cm. a.i. demchuk found a hoe 100 meters away from an ancient mine, the upper part of the tool was a sharp-edged blade attached to a transverse wooden handle. the length of the tool is 16 cm, the maximum width is 11 cm. in 1916, i.i. bezdek found a glazed lamp in kaysada and in the 1930s, which had traces of a bonfire. in conclusion, it can be said that in the olden days, jan. in the part. iloq, located in the ohangaron river basin, is not only qad. from farming and mining regions. mil. 5-a. known as an independent state from perhaps there were 17 cities that had a great economic and political status, and the rulers of iloq were called "peasants of ilak". the inhabitants were engaged in farming, cattle breeding, large-scale mining and handicrafts. the inhabitants of ilak were famous for their wariness and tyranny. ilak was an ancient cultural center, whose statehood is a clear expression of its centuries-old roots. it was famous throughout the east for its rich mines. in addition, it is rich in various mineral and fossil resources, which we can cite as an example of the fact that turquoise deposits have been mined for a very long time based on the above information. literature 1. a.s. khasanov. ancient mining. tashkent.: editor. 2011 2. z. eshmirzaeva. on shosh and ilaq roads. tashkent region and its shrines and temples. tashkent.: golden heritage press. b. 7 3. abu rayhan muhammad ibn ahmed al beruni. mineralogy. b.-159 4. a.d. kalenov, k izucheniyu geograficheskogo stroeniya almalykskoy gruppy mestorojdenii mednykh rud. j. "za nedra sredney azii", tashkent, 1935, no. 7, b-30 5. g. d. romanovsky. karamazar is a handsome and handsome man. "zapiski mineral, ob-va". spb., 1875, b. 121 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 5 www.americanjournal.org 6. e. b. pruger. biryuza ilaka., b. 121-125. 7. t. g. oboldueva. ancient mine altyn-topkan, the manuscript is kept in the museum of the republic of uzbekistan. 8. m. e. mason. arkheologicheskie materialy k istorii gornogo dela, b. 43 9. "tashkent" encyclopedia. 2009 10. https://uzsmart.uz/ensiklopediya/ensiklopediya/feruza.html american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 194 www.americanjournal.org promoting investment activity of large taxpayers through tax incentives tokhirov shukhrat niyoz ugli researcher of fiscal institute a b s t r a c t k e y w o r d s the article is devoted to consideration of the efficient ways to promote investment activity of large taxpayers in our country. in addition, the article reveals the economic significance of the “tax incentive” concept. relevant conclusions have been developed based on the analytical data on the tax incentives applied in our country by types of taxes. tax, tax incentive, investment, investment policy, investment operations, investment activity. introduction: one of the effective ways to promote the investment activity of large taxpayers is to provide tax incentives. before interpreting the issues of promoting the investment activity of large taxpayers through tax incentives in terms of science, we need to study the economic essence of the “tax incentives” concept.therefore, we will analyze the definitions of “tax incentives” concept by foreign and domestic economists. in article 75 of the tax code of the republic of uzbekistan, tax and levy incentives are defined as follows: “tax incentives are the advantages provided by the tax legislation for certain categories of taxpayers compared to other taxpayers, including the possibility of not paying taxes or paying them in smaller amounts” [1]. according to the law of the republic of uzbekistan №lru-812 dated december 30, 2022 parts 5 and 6 of article 75 of the tax code are provided in the following wording: tax incentives for certain taxes, with the exception of value added tax, excise tax in the production and (or) sale of excisable products of the tax for the use of subsoil and the special rent tax on the extraction of minerals, subject to the provisions of part six of this article, may be provided by decisions of the president of the republic of uzbekistan only in the form of a reduction in the established tax rate, but not more than by 50 percent and for a period of not more than three years [2]. 2. literature review the economic literary sources provide different opinions and controversial issues regarding stimulation of investment activity of large taxpayers through tax incentives. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 195 www.americanjournal.org a.a. kozlova and e.n. kharlamova admitted two forms of state support for the investment activity of economic entities: direct encouragement, which is the allocation of funds from the state budget, and indirect encouragement, which means encouragement through taxes [3]. in the opinion of v.m.avdeeva, promotion of investment operations on the basis of foreign experience includes the following aspects: 1. providing tax incentives on profit tax. 2. that there is the need to review and change the procedure and conditions for issuing investment tax credits. 3. making additions and amendments to the tax legislation in terms of developing, approving and introducing additional norms for the promotion of investments in the activities of organizations engaged in innovative and high-tech activities, etc.[4]. according to n.v. balabanova and t.r. valinurov, tax incentives represent one of the ways to regulate indirect taxes and create more favorable business conditions for their recipients [5]. b.a. fedosimov stated the following in this regard: “tax incentives are a type of legal benefits, because they are aimed at the reduction or non-payment of taxes and fees by the taxpayer in order to ensure the interests of the subjects of economic relations within the relevant process” [6]. n.r. kozieva in her research papers made a number of proposals to further encourage the attraction of foreign investments to the free economic zones operating in the republic of uzbekistan and to further improve the mechanism of effective implementation of tax and customs benefits to enterprises with foreign investments [7]. f. rakhmatullaeva defined the tax incentive as a category as follows: “incentives are a set of ways, rights and obligations to fully or partially reduce the taxpayer’s tax obligations in the form established by law in order to regulate the economy by the state and solve social tasks” [8]. from the point of view of о.т.yuldashev, “in order to reduce the weight of the tax burden and to encourage more efficient activities of taxpayers, the legality of its imposition on certain categories of taxpayers compared to other taxpayers, non-individual and discriminatory character, discretionary and indefinite application, as well as creation of tax advantages (conveniences), tax incentives that reduce tax obligations are called incentives” [9]. in order to reveal the essence of tax incentives z.kurbanov and f.akramov theoretically divided it into three groups: – full or partial exemption from paying taxes; – tax deductions; – tax credits (long-term deferred liabilities for taxes and compulsory payments) [10]. according to j.j.urmonov, “based on the tax code and other statutory acts tax incentive is possibility to reduce the tax liability of taxpayers, to decrease the tax rate and tax base, not to pay taxes and other compulsory payments or to pay them in smaller amounts” [11]. i.niyazmetov proposed to cancel all the tax incentives provided beyond the tax code and recognized the expediency of considering innovation-based tax credits and tax holidays tested in international practice instead of them [12]. from the point of view of f.i.isaev, “tax incentives are the opportunities given to partially or completely exempt certain categories of legal entities from paying taxes, or to pay taxes in smaller amounts” [13]. u.kh. normurzaev thinks that “tax incentives are the advantages provided by tax legislation for certain categories of taxpayers compared to other taxpayers, including the possibility of not paying taxes or american journal of business management, economics and banking volume 12 may, 2023 p a g e | 196 www.americanjournal.org paying them in smaller amounts”. in addition, in his opinion, “it is required that accounting of tax incentives should be carried out by tax authorities using information systems and assigning a special identification code to each type of tax incentives” [14]. m.yu.lev, a.i.bolonin and yu.g.leshenko explain the incentive goal of the tax administration as follows: “in recent years, particular attention has been paid to “incentive taxation”. it includes many initiatives aimed at providing incentives for business income and setting rewards and penalties to encourage production. the aim of the preferential regime is to encourage the necessary flow of investment activity in required direction. as part of incentive taxation, several types of incentives are provided to encourage investment activities [15]. summarizing the definitions specified above, we can conclude that tax incentives are partial tax exemptions, lower tax payments, and tax credits extended for the purpose of providing financial incentives for taxpayers. 3.research methodology. the methodology of our research paper is the economic relations aimed at promoting investment activity of large taxpayers through tax incentives. such methods as comparison and grouping of practical materials were used, and conclusions and proposals were developed have been used during the research. 4.analysis and results: the most complicated process in the mechanism of granting tax incentives is that it is necessary to determine the criteria for determining tax incentives based on the principle of fairness and transparency. however, it should be noted that the determination of tax incentives in world practice is made in reliance upon the essence of the economic policy of each country, and in this respect, it is calculated differently in different countries. article 30 of the law №-598 of the republic of uzbekistan dated december 25, 2019 “on investments and investment activities” specifies the goals and methods of the state support for investments and investment activities. in compliance with the law, the state support for investments and investment activities, creating a favorable investment environment, encouraging investments in the organization of new competitive and innovative, export-oriented and (or) import-substituting productions, existing productions using modern technologies and introducing the latest management experience is carried out for the purpose of expansion and renewal. the state support for investments and investment activities is implementedin the following ways: application of incentives and preferences; allocation of centralized investments for joint financing of the investment project s; financial, advisory and informational support [16]. article 34 of this law envisages giving incentives and preferences for state support of investments and investment activities. in reliance upon this article incentives and preferences used for state support of investments and investment activities may include the following: transfer of state-owned objects or property rights thereto to an investor at a preferential or zero purchase price; american journal of business management, economics and banking volume 12 may, 2023 p a g e | 197 www.americanjournal.org providing incentives on taxes and payments; subsidizing interest rates on loans taken by the investor for the implementation of the investment project. incentives and preferences are given according to the following: investment volume; the conditions of the place where the investment project will be implemented; expected socio-economic effect and creation of new jobs; areas and sectors of investment project implementation. incentives on taxes and payments are providedin accordance with the law. all developed and developing countries throughout the world are using various methods of attracting investments in the field of global competition. the activity of investments directly depends on how effectively the tax system is organized. tax incentives are one of the most essential methods in the tax mechanism, it is the method of implementing economic processes, determining the direction of business development, as well as regulating the social structure of society. today the following types of tax incentives are widely applied in world practice: • withdrawal; • discounts; • tax rate reduction; • tax exemptions; • change the term of tax payment; • restructuring of debts due to taxes and fines. withdrawal is a tax incentive that allows the taxpayer to exclude a certain part from the taxable base. discount gives the taxpayer the right to reduce the taxable base by a certain amount. tax rate reduction – decrease of the tax rate as an incentive enables to pay taxes and fees at lower rates than the definitions established in the general procedure. tax exemption change the tax payment periods, allowing to pay taxes and fees in a later period. changing the tax payment term – this incentive enables to pay taxes and fees in a later period. restructuring of debts on taxes and fines allows taxpayers to extend the time period for fulfilling the obligation to pay debts, fines and other payments for violations of the laws on tax and duty payments. in reliance on the opinions of the scholars mentioned above, we think that the specific features of tax incentives can be described as follows: opportunity is limited. each of the tax incentives is strictly linked to the relevant tax and its application is limited only to the tax or charge levied; encouragement. tax incentivess, unlike other instruments, aim to encourage or support taxpayers by reducing their tax liability or creating other tax treatment conditions that are more favorable to other taxpayers; by special regions. unlike special territorial tax regimes, there are no special restrictions on the use of incentives on a territorial basis.they work in the areas where appropriate taxes are collected (in the entire state territory for state taxes and fees or for administrative-territorial units for local taxes and fees); american journal of business management, economics and banking volume 12 may, 2023 p a g e | 198 www.americanjournal.org mobility peculiarity. tax incentives enable very quick changes in tax incentives to effectively implement the regulatory function of taxes. they can be considered as a regulatory tax mechanism of a tactical nature. according to r.r. ergashev, it is necessary to introduce comprehensive incentives and incentives given to foreign direct investments to domestic investments as well.as a result of this, cash funds in the form of savings in the hands of the population also enter into circulation and result in the further development of business. in sweden, for example, there is almost no difference between domestic and foreign (external) investments [17]. about 73.4% (26,346 enterprises) of the enterprises using tax incentives in our country belong to small business entities and 26.6% (8,442 enterprises) to large enterprises [18]. tax incentives are also provided by the decree of the president of the republic of uzbekistan dated august 31, 2022 №pd-213 “on additional measures to enhance the welfare of the population through the rapid development of entrepreneurship, innovative technologies and infrastructures in the republic of karakalpakstan”: within the framework of the focus area of improving the investment and business environment of the region, ensuring the youth employment in the republic of karakalpakstan: а) in the period from january 1, 2023 till january 1, 2028 for business entities located in all districts of the republic of karakalpakstan and operating in this area: with a 50 percent reduction in tax rates for profit tax, turnover tax, property tax levied on legal entities and land tax levied on legal entities; at a tax rate of 1 percent with the reduction of the social tax; the social tax paid by individual entrepreneurs should be reduced by 12 times for those operating in urban areas, and by 6 times for those operating in districts, and set at one time of the basic calculation unit per year [19]. the decree of the president of the republic of uzbekistan dated september 7, 2022 №pd-215 “on measures to improve the activities of the direct investment fund of the republic of uzbekistan” was adopted to support investors in our country. in order to further raise attractiveness of the investment environment in the country, to support the development of entrepreneurship in the regions, and to improve the system of financing new initiatives and projects: it is required to transform the joint-stock company “management company of the direct investment fund of the republic of uzbekistan” into an investment company in the form of a limited liability company “direct investment fund of the republic of uzbekistan” (hereinafter referred to as the investment company) with an initial authorized capital in the equivalent of 100 million usd formulated at the expense of the fund reconstruction and development of the republic of uzbekistan. at the same time, within the framework of ongoing projects in 2022-2023, the investment company will be tasked with attracting additional investments in the amount of usd 200 million usd from partner investors [20]. it should be noted that free economic zones are crucially important in attracting foreign investments in our country. currently the development and growth of free economic zones and small economic zones, which are being established in our country is greatly influenced by the many incentives and preferences given by the state in terms of taxes. table 1 below provides the analysis of tax incentives applied by tax types in 2018-2022. in 2018 a total of 59792 entities received incentives in the amount of 22707.56 billion uzs, in 2019 68113 entities received incentives in the amount 29136.0 billion uzs, in 2020 93871 entities obtained incentives in american journal of business management, economics and banking volume 12 may, 2023 p a g e | 199 www.americanjournal.org the amount 31065.6 billion uzs and in 2021 incentives worth 43479.3 billion uzs were applied to 109363 entities, and incentives worth 72963.7 billion uzs were applied to 195884 entities in 2022. if we consider types of taxes separately, the amount of vat incentives extended to 2322 entities amounted to 14989.50 billion uzs and it is obvious that it has been converted into the type of tax with the greatest incentive. we can see that in 2022 this amount constituted 64107.9 billion uzs for 28214 entities and possesses the major tax incentives. the biggest part of the tax incentives provided to taxpayers falls on the share of large taxpayers (table 2). in 2022, the total amount of tax incentives amounted to 72963.7 billion uzs (see table 1), while the amount of incentives given to large taxpayers constituted 46348.7 billion uzs, or 63.52 percent of the total incentives. this ratio is the same for individual tax types. for example, total amount of tax incentives extended by vat accounted for 64,107.9 billion uzs, of which 43373.4 billion uzs or 67.66 percent are tax incentives extended to large taxpayers. 93.6 percent of the tax incentives provided to large taxpayers corresponded to vat, and 4.5 percent fall on the share of profit tax. 51.6 percent or 23929.4 billion uzs of the tax incentives extended by vat are zero rate benefits. table 1 analysis of tax incentives applied by types of taxes in 2018-20221, in billion uzs № types of taxes 2018 2019 2020 2021 2022 number amount number amount number amount number amount number amount total 59 792 22707.56 68113 29 136.0 93871 31 065.6 109363 43 479.3 195884 72 963.7 1 vat 2 322 14989.50 11380 23 073.8 7 031 24 643.3 15 508 36 766.3 28 214 64 107.9 2 profit tax 291 1 832.02 763 2 785.4 3 335 2 930.0 2 709 2 219.5 25 015 4 641.3 3 land tax 5 499 1 183.69 6 736 880.1 4 531 1 313.2 11 743 2 575.9 6 204 931.8 4 individual income tax 8 321 393.06 33866 789.0 44093 917.9 56 165 1 073.8 41 580 1 028.3 5 tax for use of water resources 7 797.97 31 469.3 673 443.7 1 376 39.1 685 12.3 6 social tax 30 258 495.80 3 993 340.9 6 230 346.5 11 247 386.3 52 616 1 187.4 7 property tax 220 897.27 382 583.2 4 813 274.0 2 195 306.1 7 809 933.0 8 turnover tax 12 530 1 325.66 10962 214.3 23165 196.9 8 420 112.3 32 921 97.2 1 developed by the author based on the data of the tax committee under the ministry of economy and finance. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 200 www.americanjournal.org table 2 analysis of the tax incentives applied by large taxpayers in 2022 by types of taxes2 billion uzs № type of tax tax incentives applied share % number of cases amount total 14939 46348.7 100% 1 value added tax 9056 43373.4 93.6% by zero rate 2830 23929.4 51.6% financial and insurance services 3028 14251.4 30.7% vat excluded 3198 5192.6 11.2% 2 excise tax 7 1.8 0.004% 3 profit tax 178 2106.3 4.5% 4 land tax levied on legal entities 1553 346.8 0.7% 5 property tax levied on legal entities 1512 113.6 0.2% 6 individual income tax 2446 206.6 0.4% 7 tax for use of water resources 16 4.3 0.01% 8 social tax 171 195.9 0.4% the main part of the investments made in our country is included in economic entities operating in free economic zones. when analyzing free economic zones and their participants in table 3, the number of fez in 2016 constituted 2, and the number of participants accounted for 248. their turnover was 2159.9 billion uzs, the number of employees amounted to 7519, the export volume made 168.0 billion uzs and the amount of tax incentives constituted 17.9 billion uzs. in 2018 the number of free economic zones was 15, and the number of participants amounted to 526. their turnover was 6741.3 billion uzs, the number of employees amounted to 14131, the export volume made 674,3 billion uzs and the amount of tax incentives constituted 203.0 billion uzs. in 2021 the number of free economic zones accounted for 23, and the number of participants amounted to 755. their turnover was 10848 billion uzs, the number of employees amounted to 34170, the export volume made 1930.9 billion uzs and the amount of tax incentives constituted 2157.5 billion uzs. according to our analysis, by the end of 2020, 202 participants of free economic zones made a profit, 133 of them (66%) used the incentives worth 26 billion uzs and 69 of them paid 2.9 billion uzs of profit tax to the budget. at the same time, 263 participants of free economic zones did not have taxable profits. 2 developed by the author based on the publicly available data of the tax committee. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 201 www.americanjournal.org table 3 free economic zones in the republic of uzbekistan in 2016 – 2021 and analysis of their main results (billion uzs)3 № indicators years 2016 2017 2018 2019 2020 2021 number of fez 2 11 15 19 23 23 number of participants 248 376 526 654 721 755 1. turnover 2159.9 4194.4 6741.3 9239.0 12859.1 10848 2. number of employees 7 519 12687 14131 28 047 32246 34170 3. payroll fund 78.7 113.0 176.0 408.9 583.6 476.6 4. export volume 168.0 469.3 674.3 1221.9 1579.4 1930.9 5. taxpayers 91.8 135.2 142.9 381.1 451.0 440.3 6. tax incentives 17.9 35.6 203.0 127.4 148.3 157.5 moreover, in reliance upon the investment volume, 27.7 million uzs of incentives were applied unjustifiably by 18 participants whose tax incentive period has expired. taxes of in the amount worth 64.5 million uzs were calculated by 6 participants, whose activities ended with profit. similar situations can be witnessed in the 1st quarter of 2021. in particular, during this period, 187 fez participants made a profit, 67 of them (80.1%) received incentives worth 39.4 billion uzs, and 120 of them paid a profit tax in the amount of 8.6 billion uzs to the budget. at the same time, 271 fez participants did not have taxable profits. proceeding from the investment volume, incentives in the amount of 644.5 million uzs were unjustifiably used by 16 participants whose tax incentive period expired, and 16 participants were taxed in the amount of 215.3 million uzs without using any incentives 5. conclusions and proposals: according to the regulation of the ministry of justice of the republic of uzbekistan dated january 10, 2020 № 3172-1 “on establishing the criteria for the inclusion of legal entities in the category of large taxpayers”, economic entities that comply with the following criteria for the inclusion of legal entities in the category of large taxpayers are considered large taxpayers: large business entities include business entities with a total income of 100 billion uzs and more during the calendar year. year by year, the share of large tax payers in the budget revenue is increasing. in 2018, its share сonstituted 52.0 percent, and in 2022 this indicator was 63.8 percent. it should be noted that one of the efficient ways to promote the investment activity of large taxpayers is to provide tax incentives. 3 the table has been compiled by the author based on the data of the tax committee. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 202 www.americanjournal.org references 1. article 75 of the tax code of the republic of uzbekistan. 2023. 2. national database of legislative acts // wording of the law of the republic of uzbekistan №lru812 dated 31.12.2022. 3 kozlova a.a. kharlamova e.n. development of the system of tax incentives in russia. // collection of scientific papers of the interuniversity scientific-practical conference. 2018. p. 48-51. 4. avdeeva v.m. — tax methods to promote introduction of digital innovations // taxes and taxation. – 2021. – № 6. – p. 1 11. 5. balabanova n.v., valinurov t.r. incentives and preferences in the system of tax regulation. “modern science-intensive technologies. regional application”, №4 (44) 2015. 6. fedosimov b.a. improving the legal regulation of the institution of tax incentives in the russian federation. law enforcement. 2022. v. 6, № 1. p. 88–99. 7. kuzieva n.r. priorities of tax policy in attracting foreign investments. electronic journal of international finance and accounting. №6, december. 2017. 8. rakhmatullaeva f. “essence of tax incentives and their role in stimulating the economy”, №2/2016 p. 108 p. 9. yuldashev o.t. directions of improvement of tax incentives in the republic of uzbekistan, dissertation claiming for the scientific degree of the phd in economics, т.: 2011. 22 p. 10. kurbanov z., akramov f. “issues of improving the financial accounting of tax incentives”, business-expert scientific journal, №9 2015 11. urmonov j.j. issues of improving the regulation of the activities of business entities through the tax mechanism, dissertation claiming for the scientific degree of the doctor of sciences (dsc) on economics. 2018 12. niyazmetov i.m. “the role of the tax mechanism in raising investment-innovation activity”. strengthening the effective influence of the banking and financial system to enhance the competitiveness of the economy. a collection of abstracts of the international scientific and practical conference. tashkent: finance, 2017. 197 p. 13. isaev f.i. “improving the tax analysis technique”. исаев ф.и. “солиқ таҳлили методикасини такомиллаштириш”. dissertation claiming for the scientific degree of the phd in economics. 2019. 116 p. 14. normurzaev u.kh. efficiency of tax incentives: theory, methodology and practice. abstract of the dissertation claiming for the scientific degree of the doctor of sciences (dsc) on economics. 2022. 15. lev m.yu., bolonin a.i., leshchenko yu.g. tax administration as a mechanism for strengthening the economic security of the state tax system // economic security. – 2022. – volume 5. – № 2. – p. 525-546. – doi: 10.18334/эcsec.5.2.114626. 16. law of the republic of uzbekistan №lru-598 “on investments and investment activity” dated december 25, 2019. 17. ergashev r.r. the influence of the tax mechanism on the investment activity of enterprises. science and innovative development / 2019, №6. 18. turabov u. o. improving the administration of tax incentives given to entrepreneurs in our republic scientific electronic journal “economics and innovative technologies”. 6/2022, november-december (№ 00062). american journal of business management, economics and banking volume 12 may, 2023 p a g e | 203 www.americanjournal.org 19. decree of the president of the republic of uzbekistan №pd-213 “on additional measures to enhance the welfare of the population through the rapid development of entrepreneurship, innovative technologies and infrastructures in the republic of karakalpakstan” dated august 31, 2022. 20. decree of the president of the republic of uzbekistan №pd-215 “on measures to improve the activities of the direct investment fund of the republic of uzbekistan” dated september 7, 2022. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 70 www.americanjournal.org the reality of the relationship between tourism spending and the average per capita in iraq for the duration (2004-2020) (analytical study) prof. dr. younes boujelbene tunisian republic university of sfax /faculty of economic sciences and management department of economics younes.boujelbene@gmail.com esraa saad fahad the republic of 1raq / researcher esraasaadfahad@gmail.com a b s t r a c t k e y w o r d s the aims of study to introduce the importance of incoming tourism spending and its impact on the economies of the country concerned with receiving tourists and its impact on macroeconomic indicators, especially the average iraqi per capita gdp, which developed according to the years of study 2004 to 2020 likely for the reasons of security and political instability, economic reasons and even health reasons such as the corona pandemic, which harmed the world and iraq, and the researchers adopted a descriptive analytical approach to study the reality of the relationship between tourism spending and the average iraqi per capita gdp, which reach the fluctuation of the results of the relationship due to the factors determining it. tourism spending, average gdp per capita index, the relationship of tourism spending with the development of iraqi per capita income. introduction: the importance of the research comes from the importance of the relationship between tourism spending and the average per capita and according to the estimates of the country concerned, if it is receiving tourists, these are their spending as tourism revenues for this country and is recorded in the balance of payments as credit deals and vice versa tourism spending will be as payments borne by the country concerned and recorded in the balance of payments as debtor deals. the aim of study to pay attention to the index of average per capita gdp in iraq, which is one of the important indicators of the driving force of economic growth and indication of the level reached by society of well-being and analysis of the relationship with international coastal spending, which is a critical expression of international tourism demand and with a statement of the most important factors determining this relationship american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 71 www.americanjournal.org methodological: first: the problem of study it is determined that the average iraqi per capita gdp is affected by incoming tourism spending, but fluctuating throughout the study period due to the instability of the political, economic and even health conditions that determine spending for international tourist demand. second: objective 1introducing tourism spending and its elements and importance to the countries receiving tourists. 2introducing the importance of the average gdp per capita index and its impact on the standard of living of citizens and the growth of the national economy. 3analyzing the reality of the relationship between tourism spending and the average iraqi per capita for the years (2004-2020) and the most important determinants of the relationship. third: the hypothesis the assumes of study that the average iraqi per capita gdp was not directly positively affected by the change in the tourism market in iraq, which determines the relationship between tourism spending and the development of the average iraqi per capita in a swing manner. fourth: the methodology followed: the researchers adopted the descriptive analytical approach in studying the research variables and achieving its objectives fifth: the structure the study included three basic sections: the first topic: tourism spending (concept, elements, effects and methods of measurement) the second topic: the average per capita and gdp in iraq (concept and importance of development) the third topic: analysis of the reality of the relationship between tourism spending in the average iraqi per capita. sixth:temporal and spatial boundaries of research: the time limits of the research during the period 2004-2020, as for the place of study, the state of iraq the first topic tourism spending (concept and importance elements and methods of measurement) first: concept: tourism spending is defined as every expenditure made within the host country, i.e. (receiving tourists) by tourists themselves on various goods and services and means in exchange for the consumption of tourism services, whether it is spending from the citizens of the country or spending from foreign visitors, i.e. international tourists, meaning the greater the tourism consumption as a result of the increase in tourists, the number of nights and the economic level, the greater the tourist spending, or it is the spending made by tourists on various tourist and non-tourist goods and services during their stay in the host country, every spend made within the host country is considered a tourist. it is a consumer tourism spending, and the spending carried out by investors in the tourism industry through the establishment and marketing of various tourism projects and products to achieve profits is american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 72 www.americanjournal.org investment tourism spending, which from this aspect represents an income obtained by different groups in society .it also clarifies its concept as the amount paid for the purchase of consumer goods and .1 services, as well as valuables (oil paintings, works of art, jewelry, ... etc) for personal use or gifting, or for the purposes of the tourist trip and during it, including spending by the tourists themselves as well as expenditures paid by others..2 tourism expenditure includes, in particular, the following: acash expenditure on consumer goods and services paid directly by the employer to workers when traveling for commercial purposes. bcash expenditure of tourists paid by a third party, whether they are business owners (businesses, governments and non-profit institutions serving households), other households or the social security program. ccash payments made by tourists for individual services supported by the government and nonprofit institutions serving households in the fields of education, health, museums, performing arts and other services. dpayments for services provided to workers and their families on tourist trips financed mainly by employers, such as subsidies for transportation, accommodation, stay in holiday housing for workers or other services. e supplementary amounts paid by tourists to attend sports or other cultural activities at the invitation of producers and paid mainly by producers (businesses, government, non-profit institutions serving households).3 tourism spending does not include other types of payments that may be incurred by tourists and is not offset by the acquisition of goods and services, such as the payment of taxes, bank interest and purchases of financial and non-financial assets, and from dawaya's point of view, tourism spending in any host tourist country is the total spending of foreign tourists during their stay in it..4 the positive development in the tourism movement will be offset by an increase in tourism spending on tourism goods and services, and this in turn will stimulate services related to tourism activity in one way or another, such as transportation, communications and communications. they are recorded on the side of the revenues of the host country and are considered credit deals, as for the country sending tourists, it is a payment borne by the country concerned and debit deals are recorded on the payment side in the balance of payments, as tourism spending is seen from the point of view of the state concerned with this expenditure if it is a reception for tourists, these people consider their spending as tourism revenues for this country and are recorded in the balance of payments as credit deals, and vice versa, tourism spending will be as payments borne by the country concerned and recorded in the balance of payments as debtor deals 5. tourism spending has several direct and indirect effects that can be summarized as follows, as the promising effects are embodied in: 1 hamid abdul nabi al-taie: an introduction to tourism, travel and aviation, al-warraq publishing and distribution foundation, 2022, p. 129. 2douglas c. frechtling ,the tourism satellite account, a primer annals of tourism research, vol.37, no. 1, p: 144. -3 department of economic and social affairs, international recommendations on tourism statistics 2008, pp. 31-32. 4 galila hussein hassanein tourism and hotel economics, faculty of tourism and hotels, alexandria university, arab republic of egypt 2006 5 manal mina hanna salman: tourism spending and its impact on the most prominent macroeconomic variables a case study in jordan, master’s thesis in business economics jordanian college of graduate studies, amman, jordan 2015, p. 28 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 73 www.americanjournal.org • the impact of tourism spending on national income: the direct income is measured by the size of the revenues derived from the direct tourist spending of tourists in the visiting area or the visited country, and as such, what the tourist spends from the moment of arrival to the country that he aims to visit is calculated as direct inputs to that country. the tourism sector, like any other sector, is an integral part of the national economy, has its actual role in the formation of the national product and this role varies according to the size and importance of the tourism sector in the national economy and does not stop the role of tourism in the formation of national income only, but it sends a series in the national economy, which results in achieving more production and use, and thus achieves more income..6 • the impact of tourism spending on employment for tourism: the tourism spending ability and superior ability to generate jobs over the rest of the other economic activities and there are several reasons that explain this superior ability, which is the belonging of tourism to the third sector service sector if we consider that the first sector is the agricultural sector and the second sector industrial sector and that this has a significant impact embodied in the limited possibility of absorbing machines and equipment in place of the work element as tourism activity remains a service activity depends mainly on the element of work7. • the indirect impact of tourism spending is achieved through the multiplier effect the complex nature of tourism demand, and the extensions of this direct and indirect demand to most sectors of the national economy, have made the tourism sector a sector with dense background links with the rest of the economic sectors equipped for it, as investment and current tourism spending knocks on the doors of many agricultural and service industrial sectors such as the iron industry, cement, glass, furniture, furnishings, etc.; the sectors associated with tourism from behind, and that any development in the tourism sector will move its effects to the rest of the other economic sectors, negatively or positively, as the income resulting from tourism activity does not stop its effects at the borders of the tourism sector, but extends to the rest of the other economic sectors equipped for it, it has been scientifically proven that the tourism revenues achieved are spent several times and on various economic sectors, each time, it gives a new increase to income until it leaks as a result of expenditures on imports, foreign investment, savings, and transfers that move money outside the scope of the national economic circle. the continuous chain of money transfers resulting from tourism activity constitutes what is known as the multiplier effect..8 tourism spending is of great importance as it contributes to strengthening the economy and sustainable development of the receiving countries by promoting economic growth, creating jobs, promoting exports, improving the balance of payments, promoting local development and improving infrastructure. as well as diversifying the economy and reducing dependence on other sectors. second: elements of international tourism spending:9 the elements of tourist spending are that tourists in general have common aspects of spending, which are the expenses of accommodation, subsistence, transportation, food and petty cash, and tourists differ in each element of spending in terms of nationality, customs, traditions, spending behavior, price level and the goal of the trip, as the factors affecting the elements of tourist spending are different behavioral 6 soria masani and amal hafnawi: the impact of tourism spending on tourism revenues in a sample of north african countries: (algeria, tunisia, morocco and egypt) for the period 2005-2020) research published in the arab journal of tourism, hospitality and archeology sciences, arab foundation for education, science and arts, volume 3, issue 5 p. 48 7 al-houri and al-dabbagh: the economics of travel and tourism 2013, al-warraq publishing and distribution foundation, pp. 140-142. 8 al-qaid and saeed al-rawi: principles of tourism: dar ithraa for publishing and distribution, 1st edition, 2011, amman, jordan, p. 147. 9 ghada saleh hassan: the economics of tourism: dar al-wafa for the world of printing and publishing, 1st edition, 2008, pp. 148-149. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 74 www.americanjournal.org patterns and different elements of tourist attractions and the different cost of international transport between countries and the financial ability of tourists and the different landmarks, ingredients and temptations tourist international tourist spending in any host country includes all that foreign tourists spend in this country during one year, so the elements of tourism spending include accommodation expenses, food and drink, transportation, domestic trips, entertainment and entertainment, purchases in addition to any other items of expenditure and do not include expenses for international travel to and from outside the country. while there is no dispute about the elements of tourism expenditure, there are different estimates of the relative importance of each of these elements and in a number of tourism studies estimates have been presented of the percentages occupied by each element of the tunnels among foreign tourists. these estimates vary from one host country to another, according to the purposes of the tourist trip to the country and from one category of foreign tourists within the same country to another and even from one tourist area to another within the same country for the same category of tourists. the purpose of the tourist trip is entertainment, culture or enjoyment of watching the environment... etc. undoubtedly affects the structure of the tunnels for foreign tourists, as those coming from abroad for the purpose of entertainment and entertainment will spend much more on this item than those who came for the purpose of culture or watching the environment. those who are mainly environmentally motivated will spend more on domestic travels. as for those who come for conference tourism or scientific tourism, their percentage of spending on entertainment, entertainment, and internal transportation will decrease significantly, while their percentage of spending will increase compared to others on accommodation. as for foreign tourists who come to make purchases, their spending on this item will basically inflate...etc. as for the impact of the structure of tourism spending on categories of foreign tourists, there is no doubt... the spending pattern of a tourist, like any other person, is determined by his level of income and taste, which is originally determined by many psychological and social factors in his country. naturally, a person, while on tourism to a foreign country, may change his spending pattern and spend more on some items and less on other items. indeed, tourism in itself may mean departing from the usual or completely familiar, but nevertheless some of the original determinants of the people’s consumption pattern that they acquired in the country remain. their homelands have an impact in general, so they cannot be abandoned, and this issue may not apply to a single tourist, but rather to the total number of foreign tourists coming from each foreign country. there is no doubt that american tourists have a spending pattern that differs from tourists coming from europe, australia, japan, or other countries. arab countries, and even for tourists coming from european countries, we find a huge discrepancy in the distribution of spending between western europe and eastern europe. the same goes for arab tourists coming from oil and non-oil countries. therefore, identifying the elements or structure of spending for each homogeneous group of tourist nationalities is an important matter and is also noted. the spending elements of a homogeneous group of tourists may differ from one tourist area to another within the country as long as there is diversity in tourism services or products. when a tourist goes to a tourist area for entertainment or amusement, the structure of his spending will differ from if he went to a tourist area full of antiquities or a natural tourist area. to view and enjoy the environment. also, the structure of spending will differ according to gender and age within the homogeneous tourist category in one tourist area within any of the host countries due to many psychological considerations. thus, the structure of tourism spending will not be uniform for all tourist groups within any country or for for all tourist areas in the country, it may also be subject to variation from one tourist season to american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 75 www.americanjournal.org another during the year. the structure of tourism spending will also differ between the different host countries, as the distribution of tourist spending is not uniform for all tourist countries due to the introduction of many different elements and variables that prevent uniformity. . among these elements are the difference in tourist attractions and variables, means of entertainment and amusement, the difference in the type of tourism services at their different levels, and finally the difference in the cost of international transportation to tourist countries depending on the difference in distances and the diversity of means of transportation..10 third: methods of measuring international tourism spending: international tourism spending within a host country is a critical expression of its international tourism demand. international tourist demand within a country can be measured by the number of foreign tourists, the number of tourist nights spent in the country or the amount spent by these tourists during their stay. the methods of estimating tourism spending vary from one country to another depending on its own circumstances, and the most important of these methods is the banking method, which is intended to rely on the banking system to reach the estimate of tourism spending, and the second method is the statistical method, where tourism spending is estimated by this means directly through statistics and data issued by the tourism apparatus, and the third method is indirectly, as an approximate estimate of international tourism spending is reached, which can be reviewed as follows:.11 the first method: limiting bank transfers to foreign tourists: this method is one of the most common ways to estimate international tourism spending within the host country. it is based on the registration of foreign exchange sales and purchases carried out by foreign tourists during the year through commercial banks or any other institutions authorized to do so. the second method: direct inquiries from foreign tourists. this method of estimating international tourism expenditures is called the direct method and depends on direct inquiries from foreign tourists about their spending on various items such as accommodation, food, drink, transportation, internal trips, amusement, and entertainment. etc. during their stay in the host country and for many reasons it is not practical to collect data from all foreign tourists on the size and elements of their spending in addition to the places where the spending took place. the third method: estimating indirectly. this method depends on first knowing the total number of tourist nights spent by foreigners in the host country, then estimating the average daily spending during a specific period of time (a year, for example). by multiplying the two together, an approximate estimate of international tourist spending during this period is reached. period. the number of tourist nights can be replaced by the number of tourists multiplied by the average stay per tourist. thus, international tourist spending is estimated according to the equation: tourist spending, total tourists (x) average stay, average daily spending, tourist spending, number of tourist nights, average daily spending. the second topic: average per capita gdp in iraq (concept, importance and development) the components and sources of a real economic renaissance are available in iraq, due to its deep historical accumulation, enormous natural resources (either apparent or latent), and human and material resources, all of which are ingredients for building a diversified economic base. however, what iraq has been exposed to during the past four decades of wars, economic sanctions, occupation, etc. it was 10 ghada saleh hassan: the economics of tourism: a previously mentioned source, p. 149 11 jalila hussein hassanein, economics of tourism and hospitality, previously mentioned source american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 76 www.americanjournal.org followed by the destruction of all aspects of the economy. all of this deprived of a historical opportunity to advance and build a balanced economy, which resulted in a rentier economy in which oil is the main sector. the overall growth process is a function of this sector’s hard currency revenues, as this sector is characterized by capital intensity compared to a weak contribution. other sectors result from the failure of most productive industrial projects due to poor planning and management, as well as the decline in local agricultural production of productive and consumer goods due to the lack of flexibility of the production system, in addition to the economic policies that during the past decades were the reason for not achieving economic growth because they were characterized by centralization, which lost efficiency. competitiveness in production capabilities, while the public sector was the main engine of economic growth, while the private sector played a marginal role and did not have the opportunity to implement large investments, which was reflected in the backwardness of the production sectors and the failure to achieve the required growth..12 first: iraq's gdp (concept, importance and development) the gdp is a mirror of economic activity in the country, and it is one of the most important and comprehensive measures to measure the level of economic performance of the country and determine the state of the economy if it is witnessing a state (contraction, expansion, recession or inflation), it is the most comprehensive indicator of total activity and includes all sectors of the economy, so it expresses the set of values of the final goods and services produced within the local economy by the elements of production located within the geographical periphery during a certain period of time, usually a year 13. it now expresses the extent of the state’s ability to exploit the material and human resources and energies in society and the high efficiency in using the available productive resources, as this indicator is one of the most important indicators expressing the level of the state’s economic performance. it is one of the indicators indicating the growth or weakness of the economy, as the development of the gross domestic product it affects the development of national income, and therefore the development of income leads to improving the level of social well-being of individuals14. gross domestic product (gdp) is defined as “the sum of the gross added values achieved in the economic sectors within the geographical borders of the country with the contribution of national and non-national factors of production. that is, it represents the sum of the values of total production of goods and services after subtracting from it the value of intermediate consumption or production requirements. it is considered gross domestic product is one of the most important indicators of economic development that is used in economic analysis, as it measures the efficiency of economic performance. gross domestic product is one of the most used tools in depicting the nature of the economic performance of any economy and the development of the level of income, which expresses the level of economic well-being. the growth of economic activity was represented by the value and growth rate of the gross domestic product, which is one of the most important economic indicators that express the state of the country's economic activity, and it represents a measure of the performance of the economy. table (15) shows 12 ahmed omar al-rawi, studies in the iraqi economy after 2003, published by dar al-doctor for science, ministry of education and scientific research, al-mustansiriya center for arab and international studies, 2009, p. 283. 13muhannad bin abdul malik salman, ahmed bin bakr al-bakr, a descriptive study (the concept of gross domestic product), saudi arabian monetary agency, riyadh, 2016, p. 23. (14)ministry of planning, department of economic and financial policies, (iraqi economic report for 2010), 2011, p. 4. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 77 www.americanjournal.org the developments of the gross domestic product in terms of the monetary value and the growth rate for the period (20042020). we note from the table that the growth rates of the gdp at current prices are volatile due to the economic, political and security conditions that iraq is going through during the research period (20042020), as the growth rate of the gdp increased from (38.12%) in (2005) to (40.88). %) in 2008, and the reason for this increase is due to iraq’s exit from international economic sanctions, the increase in the value of oil production, the increase in oil prices to $88.8 per barrel in 2008, and the exploration of new oil fields that helped increase the gross domestic product. after that, the growth rate of the gross domestic product at current prices decreased (-16.80%) in the year (2009). the reason for the decline is due to the repercussions of the global financial crisis, which caused a decline in oil prices and thus its revenues declined. after this decline in growth, the gross domestic product continued to rise at growth rates. increasingly, it reached 34.09% in 2011. this was a result of the rise in global oil prices as well as the improvement of the security situation, which had a positive impact on achieving a kind of recovery for the iraqi economic sectors. after that, the gross domestic product continued to rise with low growth rates that decreased. the growth rate reached (-2.61%) in (2014) and (-26.92%) in (2015), and this is due to the entry of isis into iraq and control of part of the governorates of iraq in mid-2014, as well as the decline in global oil prices as a result of the surplus supply. of global oil, which was reflected in the deterioration of oil revenues. the previous government policies of not developing infrastructure and investing to increase production capacities with economic openness led to economic exposure, in addition to consumer spending policies and increased rates of oil imports. local demand greatly harmed the economic and productive structure of iraq, making it a consumer market abroad and weakening local employment capabilities, which led to exacerbation. the phenomenon of unemployment in iraq. all of this contributed to the lack of development in economic growth rates and its remaining dependent on oil production to control the development of the gross domestic product, whether positive or negative. after the year (2015), the output at current prices witnessed a development until the growth rate reached about (1.15%) in the year (2016), due to the return of oil prices to rise relatively and gradually and the state’s adoption of an austerity policy, reducing spending and trying to activate other economic sectors in the iraqi economy. this increase continued until 2018, when the highest value of the gross domestic product was achieved, reaching (268,918,874.0) and a growth rate of (21.31%). as for the slight decline that occurred in (2019), it was accompanied by a decline in oil prices at the end of the year (2019) and the occurrence of unrest. popular and political issues disrupted part of the economic life in iraq, and thus economic growth declined by (-2.23%) in 2019. this decline increased in 2020, which also witnessed a decline in the gross domestic product to reach (198,774,325.4) million dinars, with a negative growth rate of (-24.39%) (see table 15). this is due to the decline in crude oil activity by (70.7%) as a result of the decline in prices. crude oil by (63.8%), as well as due to the health crisis resulting from the outbreak of the corona virus, which led to the economic crisis. it is noted that the main reason for the changes and growth in output is related to the oil sector, its value and prices, as is clear from the developments in the gross domestic product affected by the value of the oil sector. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 78 www.americanjournal.org table (1) development of gdp at current prices for the period (2004-2020) gdp, current prices, million dinars 1 growth rate of 2% year gdp, current prices, million dinars 3 growth rate of 4% year 53235358.7 2004 273587529.2 7.61 2013 73533598.6 38.12 2005 266420384.5 -2.61 2014 95587954.8 29.99 2006 194680971.8 -26.92 2015 111455813 16.60 2007 196924141.7 1.15 2016 157026061.6 40.88 2008 221665709.5 12.56 2017 130642187.0 -16.80 2009 268918874.0 21.31 2018 162064565.5 24.05 2010 262917150.0 -2.23 2019 217327107.4 34.09 2011 198774325.4 -24.39 2020 254225490.7 16.97 2012 source: columns 1 and 3 are based on data from the ministry of planning, central bureau of statistics and information technology, directorate of national accounts. columns 2 and 4 are the work of the researcher. figure (1) evolution of the gdp growth rate at current prices source: from the researcher’s work based on the data in table (1) second: average per capita income in iraq (concept, importance and development) this indicator is one of the important indicators to indicate the level of economic well-being of society. it represents the per capita share of the country’s annual output, that is, the amount of goods and services that the individual obtains during that year. it is a measure of sustainable development. however, it does not measure it completely, but it represents an important element of elements of quality of life, meaning that achieving a continuous increase in the per capita share of gdp is a necessary, albeit insufficient, condition in enhancing the level of sustainable development. the average per capita share of gdp is one of the important indicators of the driving force of economic growth, and it is also one of the most prominent indicators. on the level of well-being reached by society, especially since it reflects the extent of gdp growth rate at constant prices % ــــــــــــ years data american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 79 www.americanjournal.org development of average per capita income and expresses the extent of development of per capita income. the goal of sustainable development is to provide a decent standard of living by raising income levels, since a low level of income has negative effects on employment and, as a final result, leads to an increase in unemployment rates. to track the development of the per capita index in iraq, it is clear from table (2) that the average per capita share of gdp increased in (2005) to (2629.6) million dinars compared to what it was in (2004) (1961.5) million dinars, with an annual growth rate of (34.05%). hence, the average per capita share of gdp developed continuously during the period (2006-2013), as it rose from (3317.8) million dinars in the year (2006) to (7795.4) million dinars in the year (2013), and from that we see that the share the per capita output is high despite the circumstances the country has gone through. this is due to the achievement of economic growth rates, but it may not reflect a corresponding improvement in the individual’s standard of living in light of the deterioration of infrastructure and social services. in 2014, the average per capita share of output decreased. gross domestic product: the average per capita share of gdp reached (7399.5) million dinars, with a negative growth rate of (-5.07%), due to the political crisis and the decrease in prices and quantities of exported oil. it is noted from the data in table (16) that increases in the average per capita share of the gdp was fluctuating as a result of the instability of global oil prices, followed by an increase in the per capita share of the gdp to reach (5968.3) million dinars in the year (2017), achieving positive growth of (9.62%) compared to the year (2016) (5444.5), the period from (2019-2020) witnessed a decline in the average per capita share of gdp, reaching (4937.8) million dinars and a negative growth rate of (-26.51%) in (2020) compared to the year (2019) when it reached (6719.4) with a negative growth rate. about (-4.74%), and due to this decrease in the average per capita output is the decline in oil prices, which constitute the largest percentage in the composition of the gross domestic product, in addition to the state of economic contraction as a result of the impact of the corona pandemic. the reasons for the fluctuation in the average per capita gdp at current prices during the study period are due to the decline in oil revenues and the deterioration of the country’s economic conditions as a result of the deteriorating security conditions represented by terrorist groups’ control over large areas of the country and the impact of this on the per capita economic and productive sectors of the domestic product. table (2) development of the average per capita gdp at current prices for the period (2004-2020) year population in thousands (1 ) gdp, current prices, million dinars (2 ) average per capita gdp at current prices, thousand dinars (3 ) growth rate % (4 ) gross domestic product (million us dollars at current prices.) (5 ) average per capita gdp (thousand us dollars at current prices) (6) ) annual rate of change %(7) 2004 27139 53235358.7 1961.5 36627.90 1.31 / 2005 27963 73533598.6 2629.6 34.05 49954.89 1.74 32.39 2006 28810 95587954.8 3317.8 26.17 65140.15 2.25 29.46 2007 29682 111455813 3754.9 13.17 88837.06 3.10 37.54 2008 31895 157026061.6 4923.2 31.11 131614.43 4.50 45.33 2009 31664 130642187.0 4125.8 -16.19 111657.58 3.69 -18.16 2010 32490 162064565.5 4988.13 20.89 138516.72 4.43 20.18 2011 33338 217327107.4 6518.9 30.68 185749.66 5.74 29.49 2012 34208 254225490.7 7431.7 14.00 218002.48 6.44 12.21 2013 35096 273587529.2 7795.4 4.89 234637.68 6.61 2.72 2014 36005 266420384.5 7399.5 -5.07 228415.66 6.22 -6.00 2015 35213 194680971.8 5528.6 -25.28 166774.10 4.42 -28.94 2016 36169 196924141.7 5444.5 -1.52 166602.49 4.31 -2.53 2017 37140 221665709.5 5968.3 9.62 187217.66 4.73 9.76 2018 38124 268918874.0 7053.7 18.18 227367.47 5.60 18.54 2019 39128 262917150.0 6719.4 -4.74 233636.10 5.62 0.35 2020 40255 198774325.4 4937.8 -26.51 180924.09 4.25 -24.37 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 80 www.americanjournal.org source: column (1) ministry of planning, central bureau of statistics and information technology, annual statistical collection, index numbers, 2020. column (2) ministry of planning, central bureau of statistics and information technology, national accounts. column (3, 4, 6) is the work of the researcher. based on the table data and based on the following formula using the excel program. annual rate of change = (comparison year base year / base year) *100 average gdp per capita = gdp at current prices / population column 5 and 6, international bank for reconstruction and development (https://data.albankaldawli.org/). figure (2) evolution of the average per capita growth rate source: from the researcher’s work based on the data in table (16) the general average per capita gdp in iraq during the aforementioned period is 9.87 thousand us dollars (at current prices). this average can be used to understand the general level of per capita income in iraq during this period. it also shows the annual rate of change in the per capita gdp in iraq. this indicator expresses the percentage change in the level of per capita income over the years. from 2004 to 2008, gdp per capita saw a strong increase, rising at an annual rate of between 29.46% and 45.33%. this is partly due to the overall increase in gdp in this period. in 2009, there was a sharp decline in gdp per capita by -18.16%. this may be a result of the economic challenges and turmoil that iraq faced in that period. from 2010 to 2015, gdp per capita declined at an annual rate between -2.53% and 28.94%. this can be partly explained by the economic and political challenges iraq has experienced, including the impact of low oil prices. from 2016 to 2020, gdp per capita continued to decline at an annual rate between -24.37% and 9.76%. this decline shows the continuing economic challenges facing the country during that period. the table shows a relative rise in per capita gdp during the period from 2004 to 2013, increasing at an average annual rate of 9.87%. however, it is noted that declines were recorded from 2014 to 2020, with the annual rate decreasing by (-24.37%) analysis of this table gives a general idea of the changes in the per capita gdp in iraq during the specified period. however, there are other factors such as inflation, unemployment, and unequal distribution of income that may affect the general economic situation of the individual in iraq. years average growth rate per capita ــ % ــــــــــ data american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 81 www.americanjournal.org the third topic: analysis of the reality of the relationship between tourism spending and the average per capita income in iraq (2004-2020) in order to analyze the reality of the relationship between tourism spending and the average per capita income in iraq (2004-2020) we will rely on what is stated in table (3) as follows: table (3): tourism spending and average per capita tourism spending (2004 2020) source: (1) international bank for reconstruction and development (https://data.albankaldawli.org/). (2) worked by the researcher based on the table data and relying on the following formula using the excel program. annual rate of change = (comparison year base year / base year) *100 (3) the average iraqi per capita tourism expenditure was calculated by dividing the total tourism expenditure by inbound tour ism/the population in iraq. it shows a decline in tourism spending in the period from 2004 to 2006, despite the fact that there was a significant increase in 2005 by (49.64%) in tourism spending, but it was followed by a decline in 2006 by (16.11%). these changes can be attributed to security conditions. the instability in iraq after the american invasion in 2003 and the political and security unrest that affected most of the activities of the iraqi economy, including tourism. from 2007 to 2013, tourism spending witnessed a continuous increase with an annual rate of change ranging between (12.18% and 104.61%). this is due to the improvement of the security conditions and relative stability in iraq, and the government’s efforts to encourage investment in the tourism sector, the increase in tourism investments and the availability of more tourist facilities, as factors that contributed to this increase. then there was slow growth and years tourism spending (million us dollars at current prices) (1) annual rate of change % (2) average per capita tourism spending (us dollars) and current prices) (3) ) annual rate of change % (4) 2004 419 / 15.04 / 2005 627 49.64 21.85 45.26 2006 526 -16.11 18.20 -16.71 2007 705 34.03 24.60 35.17 2008 813 15.32 27.82 13.12 2009 1221 50.18 40.31 44.88 2010 1675 37.18 53.57 32.90 2011 1879 12.18 58.03 8.32 2012 2363 25.76 69.78 20.24 2013 4835 104.61 136.27 95.29 2014 6115 26.47 166.41 22.12 2015 7934 29.75 210.13 26.27 2016 7647 -3.62 197.61 -5.96 2017 8093 5.83 204.26 3.37 2018 7855 -2.94 193.52 -5.26 2019 10925 39.08 262.85 35.83 2020 4172 -61.81 98.03 -62.70 average / 21.60 105.78 18.26 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 82 www.americanjournal.org fluctuations in the period from 2014 to 2018. in 2014, tourism spending witnessed an increase of (26.47%), but it slowed in the following years until 2018. the fluctuation in tourism spending in that period could be due to the security conditions that it is characterized by total instability, the presence of some scattered security challenges in some areas, and the impact of regional conflicts surrounding iraq. then in 2019 there was a significant increase (39.08%) in tourism spending, representing a recovery after the previous period of slowdown. this increase could be due to improved security conditions and progress in political stability in iraq, in addition to the government’s efforts to enhance tourism investments and improve the business environment, recording a significant decline in tourism spending in 2020 by -61.81 percent due to the sudden economic turmoil caused by the corona (covid) pandemic. -19) this was explained in the previous paragraph. both figure (3) and figure (4) show tourism spending in iraq with rates of change for the period 2004-2020. my agencies: source: from the work of the researcher based on data in table (3) using the (excel) program. source: from the work of the researcher based on data in table (3) using the (excel) program. as shown in the table regarding the average per capita share of tourism spending (us dollars and current prices), it shows the average financial expenditure spent by each individual in iraq on tourism spending in that year. there was a noticeable increase in the period from 2004 to 2013. in 2004, the average per capita tourism spending reached $15.04. then this average increased at a positive annual rate of change to reach (136.27) dollars in 2013. one million dollars in 2013. the increase in the average per capita share is a positive factor that indicates an increase in tourism revenues earned by one person in iraq, and then the value decreased significantly in the following years. to decrease in 2020 to (98.03) dollars, by 62.70%. due to the impact of the covid-19 pandemic on the tourism sector, these rates indicate that the average per capita share of tourism spending in iraq has been greatly affected by changes in the tourism market and economic and political factors. as shown in figure no. (5) and figure no. (6) 419 627 526 705 813 1221 1675 1879 2363 4835 6115 7934 7647 8093 7855 10925 4172 0 2000 4000 6000 8000 10000 12000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020o n e m ill io n u s d o lla rs yaers figure (3): tourism spending in iraq for the period (2004 2020) tourism spendingــــــــــــــ 49.64 -16.11 34.03 15.32 50.18 37.18 12.18 25.76 104.61 26.47 29.75 -3.62 5.83 -2.94 39.08 -61.81 -100.00 -50.00 0.00 50.00 100.00 150.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % years figure (4): annual rate of change in tourism spending in iraq for the period (2004 2020) annual rate of change in tourism spendingـــــــ american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 83 www.americanjournal.org source: figures 5 and 6 of the researcher’s work based on the data in table (3) using the excel program. conclusion : after studying the two research variables (tourist spending and the average per capita gdp in iraq), we reached the importance of the relationship between the two variables because of their economic impact, first represented by the financial returns that are gained from incoming international tourism demand, and the increase or decrease in tourism spending within the country has a direct and indirect impact on the average iraqi per capita share of gdp and its development, but the determinants of the relationship were primarily political, security, economic, health, and even environmental reasons that reflected their unpositive impact on the reality of the relationship. the relationship rates indicate that the average per capita share of tourism spending in iraq has been affected in some way by changes in the tourism market, but the market is determined by a number of economic and political factors, which reduces the importance of the relationship. the researchers recommend the importance of paying attention to stimulating international tourism demand coming to iraq, which has a significant financial impact in bringing foreign currency to iraq and benefiting from it to finance tourism development projects, create job opportunities for citizens, and improve their standard of living by increasing their share of national income and gross domestic product in the future. 15.0421.85 18.2 24.6 27.8240.3153.5758.0369.78 136.27 166.41 210.13 197.61204.26 193.52 262.85 98.03 0 50 100 150 200 250 300 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 a m er ic an d o ll ar years figure (5): average per capita tourism spending in iraq for the period (2004 2020) average per capita tourism spending ـــــــــــ -80 -60 -40 -20 0 20 40 60 80 100 120 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 % years figure (6): the annual rate of change of the average per capita share of tourism spending and the annual rate of change of tourism spending in iraq for the period (2004 2020) annual rate of change in tourism spending annual rate of change of average per capita tourism spendingــــــــــــ american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 84 www.americanjournal.org references 1. hamid abdul nabi al-ta’i: an introduction to tourism, travel and aviation, al-warraq publishing and distribution foundation, 1st edition, 2022, 2. douglas c. frechtling, the tourism satellite account, a primer annals of tourism research, vol.37, no. 1, p: 144. 3. department of economic and social affairs, international recommendations concerning tourism statistics 2008 4. jalila hussein hassanein, tourism and hotel economics, faculty of tourism and hotels, alexandria university, egypt, 2006 5. manal mina hanna salman: tourism spending and its impact on the most prominent macroeconomic variables a case study in jordan, master’s thesis in business economics jordanian college of graduate studies, amman, jordan 2015 6. suriyya masani and amal hafnawi: the impact of tourism spending on tourism revenues in a sample of north african countries: algeria, tunisia, morocco and egypt (for the period 2005-2020), research published in the arab journal of tourism, hospitality and archeology sciences, arab foundation for education, science and arts, volume 3, issue 5 7. al-houri and al-dabbagh: the economics of travel and tourism 2013, al-warraq publishing and distribution foundation 8. al-qaid and saeed al-rawi: principles of tourism: dar ithraa for publishing and distribution, 1st edition, 2011, amman, jordan. 9. ghada saleh hassan: the economics of tourism: dar al-wafa for the world of printing and publishing, 1st edition, 2008, pp. 148-149. 10. ahmed omar al-rawi, studies in the iraqi economy after 2003, published by dar al-doctor for science, ministry of education and scientific research, al-mustansiriya center for arab and international studies, 2009. 11. muhannad bin abdul malik salman, ahmed bin bakr al-bakr, a descriptive study (the concept of gross domestic product), saudi arabian monetary agency, riyadh, 2016, p. 23. 12. ministry of planning, iraq, department of economic and financial policies, (iraqi economic report for 2010), 2011. 13. iraqi ministry of planning, central bureau of statistics, standard numbers department, annual statistical bulletin, for multiple years. 14. iraqi ministry of planning, central bureau of statistics and information technology, directorate of national accounts. 15. iraqi ministry of planning, central bureau of statistics and information technology, annual statistical collection, index numbers, 2020. 16. international bank for reconstruction and development (https://data.albankaldawli.org/). american journal of business management, economics and banking issn (e): 2832-8078 volume 3, | aug., 2022 p a g e | 11 www.americanjournal.org the effect of some variables of private banking activity on the effectiveness of local investments in iraq: the united bank for investment as a model prof dr. subhi hassoon, shassoon@uomustansiriyah.edu.iq hussein kadhim, hk358101@gmail.com university of mustansiriyah a b s t r a c t k e y w o r d s banking activity is no longer confined to a narrow scope by a group of dealers, but rather has become a daily process that is cared for by a wide range of individuals and institutions, and its importance is increasing day after day due to the changes in the economy under which the banking sector has become the main role in preparing the appropriate conditions. which opens the way for the economy to develop in a state characterized by a kind of stability, so it is not possible to neglect the role played by banking activity in light of an internal openness to the market economy. investment programs, and in the context of this problem, was the united bank for private investment an appropriate role in financing local investments? was the united bank for private commercial investment a contribution to the total private fixed capital formation? does the united bank for commercial investment invest its money in specific projects? the research stems from a basic hypothesis that: the role of the private commercial bank is not insignificant in enhancing the effectiveness of local investments in a way that reduces the burden on government commercial banks. however, his role is still limited to financing these local investments and raising their effectiveness. this research aims to shed light on the reality of local investment in iraq and the extent of its ability to meet the requirements of development. and examining the role and orientation of the united bank for investment through analysis bank activity, local investments, and the united bank for investment. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 12 www.americanjournal.org and measurement in promoting and supporting investment policies and showing strengths and weaknesses in them. in order to become familiar with the subject of the research and the goal of reaching the goals it seeks, the study was separated into three axes, the first axis: the theoretical framework for banking activity and the effectiveness of local investments, the second axis: a review of the path of development of the united investment banking activity for the period (2010-2020), the third axis: measurement and analysis of the impact of the banking activity of the united bank for investment on the effectiveness of local investments for the period (2010-2020), the fourth axis: conclusions and recommendations. after conducting an analysis of the reality of the banking activity of the united bank for investment and the local investment index and measuring the impact of some variables of banking activity and their ability to influence the effectiveness of local investments, there are a set of conclusions, including the banking activity of the united bank is of great importance to contribute to economic development by granting bank credit to finance investment projects, as the banking activity of commercial banks is a basic pillar of the banking system and one of the main pillars in building the economic structure of the state, and plays the role of mediator between saving and investment. the effectiveness of investments among many economic activities is of great importance in all countries as it is an important element in achieving the process of economic development, and its activation is linked to the contribution of the banking activity of the united bank for investment through its financing of important investment projects in increasing the use of financial and human resources in addition to its contribution to the exploitation of excess cash and thus capital accumulation. it appeared through the analysis and measurement of some indicators of banking activity, that the performance of banking activity is still weak despite the reforms that affected the banking environment, and despite the monetary authorities’ adoption of the monetary and banking reform program after 2003. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 13 www.americanjournal.org introduction the banking sector today is a mainstay for building any free economy that strengthens the foundations of any country and pushes it towards the process of growth and economic and social development if the foundations in building this sector are strong and solid and based on scientific planning and rich in efficiency, experience, and confidence, especially if this sector can contribute to plans development and investment in terms of construction and economic growth of countries and societies. banking activity is no longer confined to a narrow scope by a group of dealers. rather, it has become a daily process of interest to a wide range of individuals and institutions, and its importance is increasing daily due to the changes that the economy is witnessing in its shadow. this opens the way for the economy to develop in a state characterized by a kind of stability, as the main banking activity carried out by commercial banks is accepting deposits and granting credit to individuals and other institutions, and it can also have a role in financing investment projects in various economic sectors. therefore, the role played by banking activity cannot be neglected in light of an internal openness to the market economy. problem of research any weakness in the role of the banking activities of the united bank for investment towards the financing process casts a shadow over the reluctance to implement investment programs, and in the context of this problem is the failure of private commercial banks to express a desire to finance local investments, especially within the framework of long timeframes, because they often look for shortterm, quick-return and low-risk financing opportunities. hence, the problem of the study is revealed through the following questions: 1. was the united bank for private investment an appropriate role in financing local investments? 2. did the united bank for private commercial investment have a contribution to the total private fixed capital formation? 3. does the united bank for commercial investment invest its money in specific projects? importance of research the importance of the research lies in showing the extent of the impact of banking activity tools represented by (bank investments, bank deposits, bank credit) for the united bank for private investment sample on the effectiveness of local investments in iraq, and this matter will give decisionmakers a greater perception of the feasibility of iraqi private banks and their ability to influence the iraqi economy. hypothesis of research the research stems from a basic premise: the private commercial bank’s role is not insignificant in enhancing the effectiveness of local investments in a way that reduces the burden on government commercial banks. however, its role is still limited to financing these local investments and raising their effectiveness. aims of research this research aims to shed light on the experience of some iraqi private commercial banks in financing investment projects in light of the policies of transformation from a directed economy to an economy american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 14 www.americanjournal.org based on market forces (supply and demand). therefore, the research seeks to answer the following question: can banks implement or create projects? its own income-generating investment and financing the existing one. based on the foregoing, the research seeks to achieve the following goals: 1analyzing the relationship between banking activity and local investments. 2shed light on the reality of local investment in iraq and its ability to meet the requirements of development. 3examining the role and orientation of the united bank for investment through analysis and measurement in promoting and supporting investment policies and showing their strengths and weaknesses in them. methodology of research in order to achieve what the research aims at achieving the goals it seeks and to test its hypothesis, the researcher tries, through the descriptive analytical method, to track the development of some banking and investment indicators during the study period (2010-2020). research limits 1time limits: the study period was determined in the period (2010-2020) through the analysis of the financial statements, based on the annual financial reports of the united investment bank. 2spatial limits: the research was limited to (the united investment bank), to conduct a field study, due to the availability of financial statements and annual financial reports for the period (2010-2020) published on the official website of the united investment bank. research sample and selection the research relied on a sample from the united bank for investment to conduct the practical aspect of the research, that the reason for choosing the research sample from the bank is due to its vital role in supporting banking activity and it is carrying out many important activities in stimulating the economic activity of the state, as well as the old history of its establishment compared to other banks, as well as announcing its annual reports compared to other banks, as well as most of the banks that cooperated with the researcher by answering the questions posed by the researcher and providing him with financial data for the practical side, as well as the diversity of banking services provided by the researched bank. research structure in order to become familiar with the subject of the research and the goal of reaching the goals that it seeks, the study was separated into three axes, as follows: the first axis: the theoretical framework for banking activity and the effectiveness of local investments. the second axis: a review of the development path of the united investment banking activity for the period (2010-2020). the third axis: measuring and analyzing the impact of the banking activity of the united bank for investment on the effectiveness of local investments for the period (2010-2020). fourth axis: conclusions. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 15 www.americanjournal.org the first axis: the theoretical framework for banking activity and the effectiveness of local investments banking activity in any country is one of the basic pillars of the economic and financial system, given its significant impact on the economic and social development process. commercial banks, through performing their functions, mobilize savings and redistribute them to various economic sectors in the form of loans and credit facilities, or in the form of direct investments in the capital of companies, so the banking activity is one of the most important financial activities in any country and constitutes a link between the various economic sectors. first: the concept and importance of banking activity 1the concept of banking activity commercial banks are financial institutions that receive deposits and provide loans. these institutions are included under the term “banks” and commercial banks act as financial intermediaries with which natural persons interact frequently, i.e. people who need loans to buy homes, buy a car, or open short investment projects. the term is usually obtained through the bank (mashkin & eakins, 2018: 47). therefore, banking activity is defined as all banking services, especially the acceptance of deposits and their use with other resources of the bank in investing in whole or in part by lending or any other method permitted by law. (abdullah, 2000: 15) the iraqi banking law defines banking activities as the act of accepting cash deposits or other money payable from the public for the purpose of depositing credits or investments in its own account. (lefta et al., p. 47, 2007) banking is also defined as the business of accepting and protecting funds owned by individuals and other entities and then lending these funds to carry out economic activities such as making profits or simply covering operating expenses. (sruti bansal, 2020: p. 11). banking activity was defined as the activity of attracting deposits in relation to the funds of individuals and legal entities, and allocating these funds on behalf of the bank and at its own responsibility, opening and servicing the accounts of individuals and legal entities. it is the mainstay in the development and expansion of the banking business by expanding its service package and improving its capabilities in the areas of products, marketing, and customer service. (p. s. aithal, 2016, pp. 46-55). it is noted above that the definition of banking activity varies according to the method used by the researchers and the different views of the goals achieved by these banks. ease of identifying the main objectives of its work. therefore, banking activity can be defined based on these goals as that activity carried out by an institution whose goal is to trade in money (money) obtained from others in the form of deposits or loans and then change its use in various investment fields to achieve several goals, including: a obtaining an appropriate return for the owners of the bank (return on capital). b regulating the process of investing the financial resources available to individuals for their benefit of them and serving the national economy. 2the importance of banking activity: the importance of banking activity is reflected in its vital and effective role in supporting and developing economic activity. banking activity is one of the pillars of the local economy and maintains monetary and financial stability by providing certain banking services. the importance of banking activity is demonstrated through three main axes: (mohieddin, 2014, 275). american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 16 www.americanjournal.org a. the role of effective and vital banking activity and its ability to finance development projects through commercial banks. b. commercial banks exit from the traditional activity and carry out modern banking tasks and activities. c. the role of banking activity in serving international trade by providing its banking services through bank branches and their correspondences spread across the world. it is noted from the above that the economic importance of banking activity and its role is represented in the following: (al-hashimi, 2010:82), (pierri & timmer, 2021, p.4), (abdul baqi, 16, 2015) 1. banking activity is considered one of the pillars of economic activity and a source of financing, as it is an intermediary between owners of surplus financial resources and owners of scarce financial resources that have a deficit in financial resources. 2. banking activity can provide assistance to economic institutions by supporting and financing their activities and investment projects with loans, as well as providing advice and guiding institutions and their investment projects to profitability, profitability, and cost reduction. 3. accepting and accumulating savings and directing them towards investments that increase local production by creating new product value that can open up development prospects for society. 4. banks can open long-term investment projects due to the large volume of balances. 5. due to the diversity of banks' investments, they distribute risks, enabling them to enter into projects with high risk. 6. banking activity can provide financial services in a broader and better way than other financial institutions and can meet all credit facilities, payments, and savings from individuals, the business sector, and governments. 7. acting as a financial intermediary for clients in the financial market by buying and selling securities and obtaining the resulting profits in favor of clients in return for a commission, in addition to that, buying and selling securities for its own account in the financial market. 8. expanding banking activity and developing its services for foreign trade. this activity is represented in documentary credits, remittances, commission rates, and others 9. banks conduct a special study on the markets. they also look at global economic events and provide information about evaluation methods, investment systems, and how capital is transferred, meaning that banks are a source of information and very important economic services. it is noted from the above that the importance of banking activity varies through the historical traceability of the emergence of banks, as they were not the result of a boom, but were the result of a historical development that took hundreds of years. it is the oldest monetary institution that mediates between savers and investors, and it is also referred to as a fund of finance. 3some variables of banking activity commercial banks are among the most important international financial institutions, as they are an essential part of the process of transferring capital from the owners of the financial surplus (lenders) to those with financial deficits (borrowers). activate and move the economic process, that is, it helps accelerate the growth of the economy forward, and one of the most prominent activities practiced by commercial banks is: aaccepting deposits and developing savings: accepting deposits is one of the oldest banking activities, as commercial banks, in their usual capacity, accept deposits of all kinds from individuals american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 17 www.americanjournal.org and organizations. (al-serify, 2006: 20). deposits are the most sources of funding for banks, and in the event of a bank liquidation, the return from selling its assets is used first to pay off depositors, then creditors, and then the remaining funds are paid to shareholders. (rose & hudgins, 2008:138). and upon it depends a lot of banking intermediation, such as granting loans and creating money. b credit facilities: credit facilities are among the banking activities that facilitate customers to finance their activities with the least effort and the least possible amount of costs they incur in order to achieve this, as banking facilities are considered one of the important and basic operations carried out by banks and it is the most important item for investing money with the bank. bank financing operations are the main source of the bank's revenues (al-barzanji, 2018, 143). among the types of credit facilities, we find: c issuance of letters of guarantee: the letter of guarantee is an undertaking issued by the bank at the request of one of its dealers that it accepts to pay an amount of money to the beneficiary in whose favor this letter is issued on behalf of the client who is unable to fulfill his obligations towards this beneficiary within a specific period determined in a letter security. (ghoneim, 2007, 73-74). d opening the credit: the opening of the credit is just a promise of a loan, which is the bank placing a certain amount of money at the customer’s disposal where he can spend within his limits, provided that this customer provides a guarantee accepted by the bank, and the interest is calculated on the basis of the payments that the customer withdrew and their dates in opening the credit. (al-shammari, 91, 2012). e approval of checks services: some agencies ask their customers for a certified check to supply them with the goods. here, customers submit a request to the bank to ratify or approve checks by putting a stamp and signature of the exchange on them drawn to the order of those bodies. (ghoneim, 2007, 79). f granting loans (credit): the importance of credit is evident as the backbone of any bank, from which the return on credit activity is achieved, as this activity represents the main focus of any bank’s revenues, no matter how diverse and numerous its other activities. (al-munshid and al-bahadli, 2020:11). therefore, loans can be defined as: it is the trust that the bank gives to individuals, institutions and bodies in need of financing, and puts at their disposal a sum of money to be used for a specific purpose during a specific period and is repaid on certain conditions in return for an agreed upon material return. (afaneh, 2018:17). loans are considered the most attractive investment for banks, considering the most important and most important function that the bank exercises, as it accumulates savings or deposits to redistribute them in the form of loans. gbanking investments in subsidiaries or joint stock companies: some banking investments are expressed by financial investment in securities (shares and bonds) available for investment in the financial markets and other securities with the aim of owning them for a certain period of time and then selling them when their price rises in the financial market for the purpose of obtaining profits. extra. (al-husseini, 2010:67). financial investment is also known as written contracts, the holder of which is entitled to legally claim profits or interests. this right consists in obtaining a portion of the return on the real assets issued for the securities. (alexander, 2001:1). the accounting and regulatory standards board in iraq defined financial investment as “long-term investments in securities such as shares and bonds.” american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 18 www.americanjournal.org second: the concept and objectives of local investments in the local economy 1investment concept the concept of investment quoted its scientific origins from economics because the content of investment refers to the efficient allocation and evaluation of available resources and is closely related to another set of economic concepts, the most important of which are income, saving, consumption, and borrowing. (matar,29:2013) there have been many concepts about investment and differed according to the angle viewed to it, and we note this as follows: a the concept of investments from an economic point of view investment is defined as the use and consolidation of funds in economic, social, and cultural projects, with the aim of achieving the accumulation of new capital and raising the productive capacity or renewing and compensating the old capital. (alwan,2009,29). investment is also defined as any asset, whether tangible or intangible, that is expected to lead to a periodic return or lead to an increase in value. (winger & frasce, 2000:10). investments can be defined as the commitment of capital to one or more assets that are held for future periods (charles, 2004: 1). bthe concept of investments from an accounting point of view it means the movement and devotion of funds in various assets through which institutions aim to use their surplus cash to purchase or construct buildings and lands, deposit term cash deposits in financial institutions, purchase shares, bonds, and transfers, and contribute to the establishment of banks and economic units. (saleh et al., 2:2009). in the iraqi investment law (no. 13 of 2006), the iraqi legislator defined investment as “the investment of money in any activity or economic project that brings legitimate benefit to the country.” through the definitions and concepts mentioned previously, the concept of investments has taken several different directions with different views on the nature of investments and the way the individual or economic unit views its capital, and how to develop and maximize it. that is why investment is defined as "it is basically an asset created with the intention of allowing money to grow". the wealth created can be used for a variety of purposes, such as meeting a shortfall in income, saving for retirement, or meeting specific obligations such as paying off loans, paying tuition, or buying other assets. an investment can generate income in two ways: a if we invest in salable assets, we may earn income through profit. b if the investment is made in assets to generate a return, it will earn income through the accumulation of gains. in this sense, it can be understood what investment is by saying that all investments revolve around putting your savings in assets or things whose value becomes greater than their initial value or those that will help in generating income over time. as for the concept of local investments, it was defined as (the opportunity available to invest in the national markets regardless of the investment tools used such as real estate, securities, and commercial projects). (maarouf, 2003, 18-19). it is also defined as national investments in which the investor's nationality is local, whether they are individuals or institutions, and these local investments have priority over foreign investments in many countries and societies (ramadan, 2007:36). american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 19 www.americanjournal.org through the previous two definitions, it can be said that local investments mean all available opportunities for investments in the local markets and in which local residents reside within the territory of the state. 2objectives of local investments before deciding to invest money in any one of the many investment plans available, it is essential to understand the reasons behind it and the meaning of the investment. while the individual goals of investing may differ from one investor to another, the general goals of investing money may be one of the following: a keeping money safe capital preservation is one of the primary investment objectives for individuals. some investments help keep hard-earned money safe from eroding over time. by putting money into these instruments, fixed deposits, government bonds, and even a regular savings account can help keep money safe. although the return on investment may be lower here, the goal of capital preservation is easy to achieve. (al-shammari, 2006: 325). b achieving the maximum possible return profit is the most important motive that motivates investors to give up their money and put it in the possession of other people, it may be a bank, a factory, a farm.... etc. undoubtedly, the return that investors obtain constitutes one of the most important criteria by which investors make their decision to invest in one project over the other, meaning that the projects that bring them the largest amount of profits are the preferred projects for investors. c helping money grow one of the common goals of investing money is to ensure that it grows larger over time. capital appreciation is generally a long-term goal that helps people secure their financial future. to make the money you earn grow into a fortune, you must think about investment goals and options that provide a high return on the initial amount invested. some of the best investments for growth include real estate, mutual funds, commodities, and stocks. the risks associated with these options may be high, but the return is also important in general. (what is investment? https://maxlifeinsurance.com) d to earn a steady stream of income investments can also help in earning a stable source of income. examples of such investments include fixed deposits that pay regular interest or shares of companies that pay dividends to investors on a fixed basis. income-producing investments can help pay for everyday expenses after retirement. alternatively, they can also serve as excellent sources of supplemental income during working years by providing additional funds to meet expenses. (the-value-and-economic-benefit-ofcommunitybanks, at https://www.fscb.com( e to reduce the tax burden apart from capital growth or capital preservation, investors also have other compelling investment objectives. this motivation comes in the form of tax benefits offered by some income tax laws. https://maxlifeinsurance.com/ https://www.fscb.com/ american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 20 www.americanjournal.org investments in options such as insurance plans, general provident funds, and stock-linked savings systems can be deducted from gross income. this has the effect of reducing your taxable income, thus reducing your tax liability. (vasileva, 2019: pp411-412). f saving for retirement saving for retirement is a necessity. it is essential to have a retirement fund that you can rely on in your post-retirement years, because you may not be able to keep working forever. by investing the money, you earn during your working years into the right investment options, you can allow your money to grow enough to support you after retirement. (sadia, manal, 2015: 61). 3some variables expressing local investments the relevant literature indicates that the best indicator of domestic investment is gross fixed capital formation, and this concept can be clarified below. gross fixed capital formation (gfcf) is a macroeconomic concept used in official national accounts. measures the value of new or existing fixed asset acquisitions by businesses, governments, and households less fixed asset disposals. gfcf is a component of gdp spending, and thus shows something about how much new value added to the economy is being invested rather than consumed, as shown below. (saleh, 1997: p.3) fixed assets are tangible or intangible assets that are produced as outputs from production processes that are used repeatedly or continuously in other production processes for at least one year. (kanu & ikechi, chilaka, 2015: p.189). thus, the gross fixed capital formation consists of resident producers' investments, minus disposals, in fixed assets during a given period. it also includes some additions to the value of non-produced assets made by producers or institutional units. it is a measure of the net increase in the stock of capital in a given period. the calculation excludes depreciation or the purchase of the land (mclaren, murphy, 2017: p.3) gross fixed capital formation is essentially a net investment. it is a component of the expenditure method for calculating gdp. in other words, gross fixed capital formation measures the net increase in fixed capital. gross fixed capital formation includes spending on improving land and purchasing plant, plant, and equipment; construction of roads, railways, private residential housing, and commercial and industrial buildings. the disposal of fixed assets is excluded from the total. (purba, et al, 2019: p2) the gfcf is called "gross" because the metric does not make any adjustments to deduct fixed capital depreciation (depreciation of fixed assets) from the investment figures. to analyze the development of the productive capital stock, it is important to measure the value of the acquisitions minus the disposal of fixed assets after replacing the obsolescence of existing assets due to normal wear and tear. the net fixed investment includes the depreciation of existing assets from new fixed investment figures, called net fixed capital formation. the formation of fixed capital is one of the most important elements of local investment, and it acts as the engine and catalyst for other production elements and raises its production and service efficiency in order to achieve economic development, especially if it is employed and scientifically managed, it will generate income, production capacities, goods, and services, as well as employing the unemployed. where fixed capital formation represents public and private sector investment in factories, equipment, and land. (meyer & sanusi, 2019: p.6) american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 21 www.americanjournal.org the financial data on gross fixed capital formation is usually provided by statistical agencies on an annual and quarterly basis. fluctuations in this indicator are often seen as telling something about future business activity and the pattern of economic growth. in times of economic uncertainty or economic stagnation, business investment in fixed assets is usually reduced, because it binds the additional capital for a longer period of time, with the risk of not paying it back. on the contrary, in times of strong economic growth, the fixed investment will increase in all areas, because the marked expansion in the market makes it likely that this investment will be profitable in the future (cohen et al). al, 2012: p.5). third: the relationship of banking activity with the effectiveness of local investments the banking system has an important role in economic activity in any country, and commercial banks are one of the important tools in economic development through mobilizing savings and helping in developing investments and increasing projects with the banking facilities and services they provide. money from lenders in the form of current accounts and deposits in return for interest and given to investors in the form of loans or through participation in the capital of investment projects. banking activities can contribute to local investment, as the third main banking function after accepting deposits and granting credit is an investment, which constitutes one of the main portfolios of the bank's budget. investment from a banking point of view is the investment of available funds in various assets in order to obtain more financial flows in the future that cover the invested amount and the risk premium and exceed the inflation rate. or it is directing the bank's owned assets (available) in areas of productivity to achieve sufficient revenues that cover their costs and the margin of the risk therein, in addition to achieving an additional positive return. (said, 273:2018) the activity of banks is one of the major activities in the economy, and the way in which resources are managed in this activity affects the economic well-being of society, so it plays a distinct and important role in the economies of developing countries as a result of its connection to the issue of development, which is one of the main goals of these countries to get out of the vicious circle of poverty. (narrator, 2010:28) there are a number of widely recognized functions of investment banks, including capital markets brokerage and trading. it is distinct and separate from the functions normally associated with commercial banks, which accept deposits and make loans. which are crucial factors in capital formation and price setting and also help in coordinating current and future consumption. one of the most important of these jobs (how do investment banks help the economy, at https://www.investopedia.com) a commercial banks are large financial institutions that assist global and local companies in financing capital, as well as engaging in trade b they help companies go public, underwrite bond offerings, and participate in proprietary trading and investments. c private banks contribute investment to the broader financial markets and the economy by matching sellers and investors, thus adding liquidity to the markets. d. banks' actions also make financial development more efficient and boost business growth, which in turn helps the economy. in addition to the many reasons that motivate dealing with commercial banks due to the functions of banking services, and one of determining important criteria that determines the impact of local banks https://www.investopedia.com/ american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 22 www.americanjournal.org in contributing to local investment is the lending of small and medium-sized enterprises. (a tool to find banks that invest in the local economy, at https://ilsr.org). the second axis: a review of the development path of the banking activity of the united investment bank for the period (2010-2020) this topic focuses on analyzing the reality of banking activity and the development of the financial situation of the united bank for investment. 2010-2020), for the purpose of arriving at the growth rates that occurred on these indicators to show the development of the bank's business. according to the following demands: the emergence and development of the united bank for investment 1a brief overview of the establishment of the bank a the establishment of the united investment bank (m/m/k) according to the certificate of incorporation numbered m/m 5762 dated 20/8/1994 issued by the companies registrar department at the ministry of commerce in accordance with the provisions of article (21) of the companies law no. (36) for the year 1983 revised, with a capital of (1000) million dinars. b the bank obtained a banking license in accordance with the provisions of paragraph (1) of article 41 of the amended central bank of iraq law no. 64 of 1976 and began its activity in investment banking operations on 5/11/1994. (the annual report of the united investment bank, 2020). 2the main objectives of the bank the main objective that the bank seeks is to contribute to economic development and revitalize its activities by practicing comprehensive banking within the framework of the general policy of the state by practicing commercial and specialized banking in addition to investment banking and financing medium and long-term economic feasibility operations for projects of the private and mixed sectors (agricultural, industrial and commercial). and tourism, construction, and services) under the supervision and control of the central bank of iraq in accordance with the provisions of its law no. (64) of 1976 (amended), the instructions issued pursuant thereto, and its law no. 56 of 2004, as well as the provisions of companies law no. (21) of 1997, as amended. (the annual report of the united investment bank, 2019). 3number and locations of the bank’s branches the bank seeks to expand its banking area in order to contribute to increasing its bank financing and investment capacity. the number of bank branches operating inside baghdad has reached (9), and (13) branches spread in other governorates. the bank’s branches practiced their banking business after taking all the approvals and controls followed in this regard. 4companies in which the bank is a shareholder the united bank for investment's contribution to its subsidiaries amounted to 10% of the capital. the table below shows the bank's contribution to private sector companies. https://ilsr.org/ american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 23 www.americanjournal.org table (1): the united bank's contribution to investment in companies affiliated with the private sector in 2020 source: prepared by the researcher based on the annual report of the united investment bank, 2020. 5application of international accounting standards athe bank has applied the international accounting standards starting in 2016, which required representing the data for the comparative years in a consistent manner with this year, and it also adopted the principle of recording at historical cost in the valuation of property and equipment instead of revaluation. b international accounting standard no. (9) financial instruments. the methodology for calculating the quantitative impact was prepared in accordance with international financial reporting standard no. (9). and that the bank continues to complete the application procedures completely, and in a manner that ensures the strengthening of the integrity of the financial position of the bank and the deepening of its concepts of transparency and disclosure, and the objectively calculating the expected credit risks in accordance with the instructions of the central bank of iraq. reviewing the path of development of the statement of financial position of the united investment bank some financial indicators will be addressed within the list of the financial position of the united investment bank for the period (2010-2020), for the purpose of reaching the growth rates that occurred on these indicators, and to show the development of the bank's business. these developments will be presented in detail and the growth rates of some accounts in the statement of financial position separately as follows. 1total assets the following table shows the developments that occurred in the total assets index of the united bank for investment during the research period. table (2): the development, change, and growth rates of the total assets of the united bank for investment for the period (2010-2020) (million dinars) nature of the company’s business bank contribution percentage (%) paid capital incorporation date company name investment 10 2,000,000,000 2000 al wiam financial investment company agricultural 10 4,101,300,000 1991 modern company for animal and agricultural production mediation in the sale and purchase of shares 10 300,000,000 2008 united international company for the sale and purchase of shares american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 24 www.americanjournal.org growth rate (%) amount of change total assets years 518,600 2010 26.46 137,226 655,826 2011 7.71 50,582 706,408 2012 6.85 48,457 754,865 2013 -20.94 -158,131 596,734 2014 -2.59 -15,490 581,244 2015 -9.19 -53,423 527,821 2016 -1.59 -8,425 519,396 2017 -0.74 -3,861 515,535 2018 17.22 88,779 604,314 2019 15.69 94,834 699,148 2020 source: prepared by the researcher based on the annual reports of the united bank for investment, several years. it is noted from the above table that the value of total assets increased from (518,600) billion dinars in 2010 to (754,865 billion dinars in 2013), as the bank was keen to raise the efficiency of employing available funds in order to increase its revenues on the one hand and enhance its participation in financing economic projects on the other. where the volume of loans and credit increased by approximately (153) billion dinars (the annual report of the united bank for investment, 2013). after that, it decreased to (515,535) billion dinars in 2018 and then increased until it settled at (699,148) billion dinars in 2020. as for the number of changes in the value of total assets, it showed a similar behavior of volatility, as while it was positive at (137,226) in 2011, it turned into a negative level to reach (-158,131) in 2014 due to a decrease in the money account balance by (78,213) billion dinars. and the balance of the loan and credit account amounted to (208,307) billion dinars. (the annual report of the united investment bank, 2014). it continued at the negative level until 2018 when it reached (-3,861) and then increased until it settled at (94,834) in 2020. the growth rates of total assets showed a volatile trend, as while they were positive at (26.46%) in 2011, they then decreased to appear at a negative level (-20.94%) in 2014, and the growth rates continued at the negative level until 2018 when they reached (-0.74%), then rose until it settled at (15.69%) in 2020. 2ownership rights the following table shows the developments that occurred in the equity index of the united bank for investment. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 25 www.americanjournal.org table (3): the evolution of the value of equity, its change, and growth rates for the united investment bank for the period (2010-2020) (million dinars) growth rate (%) amount of change equity years 138,987 2010 78.04 108,459 247,446 2011 25.39 62,819 310,265 2012 9.21 28,568 338,833 2013 -6.47 -21,918 316,915 2014 1.52 4,802 321,717 2015 0.33 1,059 322,776 2016 -7.85 -25,338 297,438 2017 2.12 6,292 303,730 2018 -0.08 -258 303,472 2019 0.05 163 303,635 2020 source: prepared by the researcher based on the annual reports of the united bank for investment, several years. it is noted from the above table that the value of property rights showed a volatile behavior during the research period, as it was (138,987) billion dinars in 2010 and rose to (338,833 billion dinars in 2013) and this is due to the developments that occurred in the paid-in capital, from the profits carried over from previous years that were added to the paid-up capital. (the annual report of the united bank, 2013), to fluctuate after that between increase and decrease, and then settle at (303,635) billion dinars in 2020. as for the amount of changes in equity, it showed a similar behavior of volatility, as while it was positive at (108,459) in 2011, it then declined to the negative level at (-21,918) in 2014, to fluctuate after that between increase and decrease, to stabilize after that's at (163) in 2020. the growth rates of property rights showed a volatile trend, as it was positive at (78.04%) in 2011, then decreased to sacrifice (-6.47%) in 2014, then fluctuated between rising and falling, to settle at (0.05%) in 2020. 3paid-up capital the following table shows the developments that occurred in the paid-up capital of the united bank for investment during the research period. table (4): developments, changes, and growth rates of paid-up capital for the united bank for investment for the period (2010-2020) (million dinars) growth rate (%) amount of change paid-up capital years 150,000 2010 33.33 50,000 200,000 2011 25 50,000 250,000 2012 20 50,000 300,000 2013 0.00 0 300,000 2014 0.00 0 300,000 2015 0.00 0 300,000 2016 0.00 0 300,000 2017 0.00 0 300,000 2018 0.00 0 300,000 2019 0.00 0 300,000 2020 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 26 www.americanjournal.org source: prepared by the researcher based on the annual reports of the united bank for investment, several years. it is noted from the above table that the value of the paid-up capital was (150) billion dinars in 2010, and increased in the following year to reach (200) billion dinars, becoming (300) billion dinars in 2013, and it will continue at this level until the end of the research period in 2020. because of the instructions issued by the central bank, part of the increases was the result of transferring distributable profits to capital, and the other part was the result of offering new shares for public subscription. (the annual report of the united investment bank, 2020, 15). as for the paid-in capital growth rate, it showed similar behavior, as it was at (333.3%) in 2011, then decreased to appear at (25%) in 2012, then decreased to (20%) in 2013, and then stabilized after that. at the zero level for the remainder of the research period to 2020. 4total liabilities the following table shows the developments that occurred in the value of the total liabilities of the united bank for investment during the research period. table (4): the development of the total liabilities and their growth rates for the united investment bank for the period (2010-2020) (million dinars) growth rate (%) amount of change total liabilities years 334,612 2010 22.05 73,768 408,380 2011 -3.00 -12,236 396,144 2012 5.02 19,887 416,031 2013 -32.74 -136,212 279,819 2014 -7.25 -20,292 259,527 2015 -20.99 -54,482 205,045 2016 8.25 16,913 221,958 2017 -4.57 -10,153 211,805 2018 42.03 89,037 300,842 2019 31.47 94,671 395,513 2020 source: prepared by the researcher based on the annual reports of the united bank for investment, several years. it is noted from the above table that the value of total liabilities showed a volatile behavior throughout the research period, as it was (334,612) billion dinars in 2010 and rose to (408,380) billion dinars in 2011, and this is due to the developments that occurred in the value of current accounts and deposits. (the annual report of the middle east investment bank, 2011), after that, it fluctuated between increase and decrease, until it stabilized at (395,513) billion dinars in 2020. as for the number of changes in total liabilities, they showed a similar behavior of fluctuation, as while it was positive at (73,768) in 2011, it then decreased to (12,236) in 2012, to fluctuate after that between increase and decrease, to settle at (94,671) in 2020. the growth rates of total liabilities showed a volatile trend, as while they were positive at (522.0%) in 2011, they then decreased to sacrifice (0-3.0%) in 2012 to settle at (31.47%) in 2020. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 27 www.americanjournal.org the third axis: measuring and analyzing the impact of some indicators of the banking activity of the united bank for investment in increasing the effectiveness of local investments for the period (20102020) this axis deals with the results of measuring and analyzing the relationship of the banking activity of the united bank for investment and the effectiveness of local forms through a set of variables through which this relationship can be determined through several demands, as follows: 1the ratio of total deposits to total fixed capital formation in this requirement, the relationship of total deposits and their impact on the total private fixed capital formation will be addressed, which expresses local investments and their effectiveness during the research period. this can be represented by the following table table (5): the ratio of the contribution of the total deposits to the total fixed capital formation of the united investment bank for the period (2010-2020) (million dinars) source: column (2) annual reports of the united bank for investment, several years. column (3) was prepared by the researcher, based on column (2). column (4): central statistical organization, directorate of national accounts, department of gross fixed capital formation. column (5) was prepared by the researcher based on column (4). column (6) was prepared by the researcher, based on columns (2) (4). column (7) was prepared by the researcher, based on column (6). it is noted from the above table, that the total deposits of the bank increased from (286,556) billion dinars in 2010 to (299,378) billion dinars in 2011. and when the demand, which increases the confidence of customers in the bank (the annual report of the united investment bank, 2011), it then fluctuates between increase and decrease, and it decreased significantly to (69,439) billion dinars in 2019, perhaps due to the repercussions of the corona pandemic, and to settle at (152,234) in 2020. as for the growth rates of the bank’s total deposits, it witnessed a volatile behavior during the research period, while it was positive at (4.5%) in 2011 and fluctuated between negative and positive levels, and it reached (130.6%) in 2016, which is the highest growth rate it reaches throughout research duration, to settle at (119.2%) in 2020. growth rate of ratio of total deposits to gross capital formation private constant (%) the ratio of total deposits to total private fixed capital formation (%) growth rate of gross private fixed capital formation (%) gross private fixed capital formation growth rate of total deposits (%) total deposits years 13.28 2,157,757 286,556 2010 -5.65 12.53 10.8 2,390,243 4.47 299,378 2011 -41.74 7.30 41.5 3,381,095 -17.60 246,693 2012 -43.15 4.15 149.3 8,428,008 41.68 349,520 2013 -60.24 1.65 34.0 11,296,725 -46.74 186,156 2014 -5.45 1.56 29.7 14,648,946 22.96 228,903 2015 223.72 5.05 -28.6 10,460,245 130.59 527,821 2016 -36.83 3.19 55.8 16,293,115 -1.60 519,396 2017 -69.28 0.98 -20.0 13,029,633 -75.31 128,221 2018 -36.73 0.62 -13.7 11,246,459 -45.84 69,439 2019 209.68 1.92 -29.4 7,936,891 119.23 152,234 2020 the compound growth rate ratio of total deposits to total private fixed capital formation -16.13% american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 28 www.americanjournal.org the curve of the ratio of the bank’s total deposits to the total private fixed capital formation was generally downward during the research period, as while it was (13.3%) in 2010, it decreased to (1.6%) in 2015, to fluctuate between increase and decrease, until it stabilized at ( 1.9%) in 2020, and the compound growth rate was the ratio of the contribution of total deposits to the total private fixed capital formation (-16.13%) during the research period, which indicates a decrease in the contribution of bank deposits to the total private fixed capital formation. the following figure shows the percentage of the bank's total deposit contribution to the total private fixed capital formation. figure (1): the ratio of the contribution of total deposits to the total private fixed capital formation of the united bank investment for the period (2010-2020) source: prepared by the researcher based on the financial data of table (5) of the united bank for investment, several years 2the total credit to the total private fixed capital formation this requirement deals with the contribution of total credit to the total private fixed capital formation, which expresses domestic investment, and bank credit plays an important role in contributing to the economic development of each country, by directing the necessary funds for private sector programs, including investment programs that require the required support, and it can be clarified it is through the following table table (6): the ratio of the total credit contribution to the total private fixed capital formation of the united bank for investment for the period (2010-2020) (million dinars) source: column (2) annual reports of the united bank for investment, several years. column (3) was prepared by the researcher, based on column (2). 13.28% 12.53% 7.30% 4.15% 1.65% 1.56% 5.05% 3.19% 0.98% 0.62% 1.92% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 growth rate ratio of total credit to the gross private fixed capital formation (%) the ratio of total credit to the gross private fixed capital formation (%) the growth rate of gross private fixed capital formation (%) gross private fixed capital formation growth rate total credit (%) total credit years 25.2 2,157,757 543,096 2010 63.89 41.3 10.8 2,390,243 81.7 986,686 2011 14.77 47.4 41.5 3,381,095 62.3 1,601,687 2012 -56.75 20.5 149.3 8,428,008 8.0 1,729,637 2013 -45.85 11.1 34.0 11,296,725 -27.8 1,249,162 2014 -10.81 9.9 29.7 14,648,946 16.6 1,456,125 2015 32.32 13.1 -28.6 10,460,245 -5.8 1,371,679 2016 -42.75 7.5 55.8 16,293,115 -10.5 1,228,259 2017 0.00 7.5 -20.0 13,029,633 -20.1 981,326 2018 -20.00 6.0 -13.7 11,246,459 -31.5 672,325 2019 -15.00 5.1 -29.4 7,936,891 -40.2 402,164 2020 the compound growth rate ratio of total credit to total private fixed capital formation -13.56% american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 29 www.americanjournal.org column (4): central statistical organization, directorate of national accounts, department of gross fixed capital formation. column (5) was prepared by the researcher based on column (4). column (6) was prepared by the researcher, based on columns (2) (4). column (7) was prepared by the researcher, based on column (6). it is noted from the above table that the total credit granted by the bank increased from (543,096) billion dinars in 2010 to (1,729,637) trillion dinars in 2013, and this credit witnessed a significant increase as the bank was keen to raise the efficiency of employing available funds in order to increase its revenues on the one hand and enhance its participation on the other hand, in financing various economic projects, the cash credit balance represents (71%) of the value of assets (the annual report of the united bank for investment, 2013), even if it fluctuates, throughout the period (2012-2017), then it decreases and stabilizes at (402.164) billion dinars. in 2020. while the growth rates of the total credit granted by the bank witnessed a decrease from (81.7%) in 2011 to reaching the negative level of (27.8-27%) in 2014, and remain negative for the rest of the research years, except in 2015, to settle at (-40.2%) in 2020. the ratio of the bank’s total credit to the total private fixed capital formation showed a downward trend, in general, during the research period, as while it witnessed a rise from (25.2%) in 2010 to (47.4% in 2012), it took a decline during the rest of the remaining research years, except for 2016, and to settle at (5.1%) in 2020, and the compound growth rate was the ratio of total credit to the total private fixed capital formation (-13.56 percent), which indicates the trend of the bank’s total credit contribution to the total private fixed capital formation to decline during the research period. especially for the period (2017-2020). the following figure shows the percentage of the contribution of the total credit granted by the bank to the total private fixed capital formation during the research period. figure (2): the ratio of the total credit contribution to the total private fixed capital formation of the united bank for investment for the period (2010-2020) source: prepared by the researcher based on the financial data of table (6) of the united bank for investment, several years. 3the ratio of total investments to total private fixed capital formation in this requirement, the percentage of total investments represented by investment in companies (subsidiaries and joint stock companies) and their impact on the effectiveness of local investments, represented by the total private fixed capital formation, is addressed, and this can be clarified through the following table. 25.2% 41.3% 47.4% 20.5% 11.1% 9.9% 13.1% 7.5% 7.5% 6.0% 5.1% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 30 www.americanjournal.org table (7): the ratio of the contribution of total investments to the total private fixed capital formation of the united bank for investment for the period (2010-2020) (million dinars) source: column (2) annual reports of the united bank for investment, several years. column (3) was prepared by the researcher, based on column (2). column (4): central statistical organization, directorate of national accounts, department of gross fixed capital formation. column (5) was prepared by the researcher based on column (4). column (6) prepared by the researcher, based on columns (2) (4). column (7) prepared by the researcher, based on column (6). it is noted from the above table that the bank’s total investments witnessed a rise from (6,395) billion dinars in 2010 to (14,397) billion dinars in 2012, as the bank sought during the previous years to expand its banking area in order to contribute to increasing its bank financing and investment capacity through increasing the number of operating branches that were opened within its plan to open branches, so the bank made great leaps during this year and achieved excellent results in all financial indicators, including the investment index and the profit index, as it achieved profits by 20% (free capitalization). (the annual report of the united investment bank, 2012), to fluctuate after that between rise and fall, to settle at (9,068) billion dinars in 2020, which did not change the investment account balance for the current year from the previous year (2019). the investment portfolio during the year 2020. (the united bank annual report, 9, 2020). the growth rates of total investments showed a decrease from (0.7%) in 2011 to (0.3%) in 2012, to sacrifice a negative level during the rest of the research years, except in 2016 and 2019, and to settle at the zero level in 2020. while the ratio of the bank’s total investments to the total private fixed capital formation was without the correct numbers throughout the research period, as it witnessed a slight increase from (0.3%) in 2010 to (0.5%) in 2011, to decrease after that, and fluctuates between increase and decrease to to stabilize at (0.1%) in 2020, and the compound growth rate reached the ratio of the bank’s total investments to the total private fixed capital formation (-8.30%), which indicates the weak contribution of the bank’s total investments to the total private fixed capital formation. the following figure shows growth rate ratio of total investments to gross capital formation private constant (%) ratio of total investments to total private fixed capital formation (%) growth rate of gross private fixed capital formation (%) gross private fixed capital formation growth rate of total investments (%) total investments years 0.30 2,157,757 6,395 2010 50.00 0.45 10.8 2,390,243 68.68 10,787 2011 -4.44 0.43 41.5 3,381,095 33.47 14,397 2012 -60.47 0.17 149.3 8,428,008 -2.04 14,103 2013 -29.41 0.12 34.0 11,296,725 -4.84 13,420 2014 -75.00 0.03 29.7 14,648,946 -65.84 4,584 2015 100.00 0.06 -28.6 10,460,245 47.05 6,741 2016 -50.00 0.03 55.8 16,293,115 -37.87 4,188 2017 0.00 0.03 -20.0 13,029,633 -17.62 3,450 2018 166.67 0.08 -13.7 11,246,459 162.84 9,068 2019 37.50 0.11 -29.4 7,936,891 0.00 9,068 2020 the compound growth rate ratio of total credit to total private fixed capital formation -8.30% american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 31 www.americanjournal.org the percentage of the contribution of the bank's total investments to the total private fixed capital formation during the research period. figure (3): percentage of the contribution of total investments to the total private fixed capital formation of the united bank for investment for the period (2010-2020) source: prepared by the researcher based on the financial data of table (7) of the united bank for investment, several years. fourth axis: conclusions 1. the banking activity of the united bank is of great importance to contribute to economic development by granting bank credit to finance investment projects, as the banking activity of commercial banks is a mainstay of the banking system and one of the main pillars in building the economic structure of the state, and plays the role of mediator between saving and investment. 2. the effectiveness of investments among many economic activities is of great importance in all countries as it is an important element in achieving the process of economic development, and its activation is linked to the contribution of the banking activity of the united bank for investment through its financing of important investment projects in increasing the use of financial and human resources in addition to its contribution exploiting the surplus cash and thus achieving capital accumulation. 3. through the analysis and measurement of some indicators of banking activity, it appeared that the performance of banking activity is still weak despite the reforms that affected the banking environment, and despite the monetary authorities’ adoption of the monetary and banking reform program after 2003. 4. with regard to investment, the delay was evident in the effectiveness of local investments and in general, many factors contributed to it, including the weak contribution of total credit in addition to the weak contribution of total deposits on the one hand, and another related to the low rates of implementation of investment projects and administrative corruption, as well as the limited sector private orientation towards investment projects. 5. it is concluded by measuring and analyzing the impact of some indicators of banking activity in increasing the effectiveness of local investments for the period (2010-2020) that there is a weakness in the contribution of banking activities represented (total deposits, total credit granted, and total investments in increasing the effectiveness of local investments. 6. the deposits of the united bank for investment are among the most effective activities in influencing local investments, as increasing local deposits by a certain percentage will increase local 0.30% 0.45% 0.43% 0.17% 0.12% 0.03% 0.06% 0.03% 0.03% 0.08% 0.11% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 32 www.americanjournal.org investments by about the same percentage; due to the localization of public sector salaries in the bank during the period under study, it contributed to raising the effectiveness of bank deposits. first: arabic references and sources a arabic books 1. abdullah, khaled amin / banking operations and modern accounting methods / 2nd edition / dar wael for publishing and distribution / amman / 2000. 2. abdul baqi, ismail ibrahim, 2015, (commercial banks department), ghaidaa publishing and distribution house, amman, jordan. 3. al-hashemi, muhammad al-taher, 2010, (islamic banks and traditional banks, the intellectual basis, realistic practices and their role in achieving economic and social development), first edition, general administration of libraries, publications and publishing. 4. al-sirafi, muhammad abdel-fattah, 2006, (banks administration), first edition, dar al-manhaj for publishing and distribution, amman. 5. al-barzanji, ahmed muhammad fahmy saeed, 2018, (introduction to bank management and banking operations), first edition, dr.’s house for administrative and economic sciences, baghdad, iraq. 6. ahmed mohamed ghoneim, 2007, 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abdel raouf, and wejdan hassan, hanan abdel hassan, “evaluation of banking investments at al-rafidain and al-rasheed bank for the period (2002-2007)”, 2009. ctheses and theses 1monasser, mohieldin, 2014, (the impact of modernizing payment methods on banking activity), master's thesis, oum el bouaghi university, faculty of economics, commercial sciences and management sciences. 2al-husseini, hammam abdel-wahhab hadi, “the effect of deposits in activating the banking investment process a comparative study of two samples of iraqi banks and saudi banks with the private sector”, master of business administration, college of administration and economics, university of karbala, 2010. 3saadia, ghalem, manal, ghattas, “fiscal policy and its role in activating local investment, a case study – algeria 2001-2013”, master’s in financial and banking economics, faculty of economics, commercial and facilitation sciences, akley madd oulhaj university boulaira, 2015 dlaws and instructions 1iraqi investment law no. 13 of 2006. ereports 1. the united bank for investment, annual report 2011, iraq baghdad. 2. the united bank for investment, annual report 2012, iraq baghdad. 3. the united bank for investment, annual report 2013, iraq baghdad. 4. the united bank for investment, annual report 2019, iraq baghdad. 5. the united bank for investment, annual report for the year 2020, iraq baghdad. hinternet sites 1(what is investment? https://maxlifeinsurance.com) 2the-value-and-economic-benefit-ofcommunity-banks, at https://www.fscb.com/blog/) 3how do investment banks help the economy, at https://www.investopedia.com 4a tool to find banks that invest in the local economy, at https://ilsr.org second: foreign sources and references a. book 1mashkin, fredric s., eakins, stanley g., 2018, (financial markets and institutions), ninth edition. 2rose, s peter, hudgins, c sylvia, 2008, (bank management and financial services), seventh edition, mcgraw-hill, new york. 3. alexander, gordon j. & sharpe, william f.8 bailey, jeffery v., “fundamentals of in vestments”, 3rd ed person education. inc., 2001. 4winger, beruard j. & fresca, ralph, “in vestments: introduction to analysis and planning”, 3ed, prentice-hall. inc, 2000. 5charles p. jones, “in vestments analysis and management”, ch1, ninth edition, copyright john wiley and dsons, inc. all rights reserved, 2004. b-journals & periodicals 1sruti bansal, “meaning, concept, and significance of banks”, international journal of recent advances in multidisciplinary topics, volume 1, issue 2, october 2020. 2p. s. aithal, “ideal banking concept and characteristics”, international research journal of management, it & social sciences (irjmis), vol. 3 issue 11, november 2016. 3pierri, nicola, and timmer, yannick “the importance of technology in banking during a crisis”, european systemic risk board, working paper series no. 117, march 2021. 4tatyana vasileva, tax bur https://maxlifeinsurance.com/ https://www.fscb.com/blog/ https://www.investopedia.com/ https://ilsr.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 53 www.americanjournal.org actual analysis of uzbekistan’s stock market: problem, solution and suggestions butaev javlon inatillo o‘g‘li doctoral student of tashkent institute of finance uzbekistan, tashkent city. e-mail: butayevjavlon@gmail.com a b s t r a c t k e y w o r d s in this article, the development of all branches and sectors of the economy requires the harmonious development of the real sector and the financial sector. in this, the development of the country’s economy is directly related to the stock market, and the analysis of the modern state of the stock market of uzbekistan and developed countries was carried out a number of scientific proposals and practical recommendations were given on the creation of economic conditions and the further improvement of the stock market, and opinions of foreign and local scientists were presented on this topic. stock market, capital market, investor, capitalization, depositor, issuer, share, bond, joint stock company. 1. introduction regardless of the economic progress of some developed countries, we can witness the rapid growth of the capital market and the stability of the investment flow. the stock market performs important tasks in the economy, that is, transforming savings into investment, effectively distributing and redistributing financial and investment resources to promising sectors of the economy, servicing the public debt, redistributing the ownership of means of production, business development and additional work. creation of positions serves to direct temporarily free financial resources to the goals of economic development. with the help of the stock market, both the state and enterprises attract the necessary funds for the implementation of development and socially important programs. also, stock exchanges operate in the market economy of many of the most modern countries of the world. at the same time, stock exchanges are considered as the most important institution of the market economy, and the activities of the respective financial institutions include many important tasks based on the national economy. a stock market is a set of mechanisms that allow transactions with physical or securities. a stock exchange is an organized market for the trading of securities. it is a place where buyers and sellers of securities meet [1]. on october 7, 2019, president of the republic of uzbekistan shavkat mirziyoev held a meeting on the development of the stock market. at this meeting, tasks were given to increase the types of securities traded in the capital market, based on world practice. mailto:butayevjavlon@gmail.com american journal of business management, economics and banking volume 10 march, 2023 p a g e | 54 www.americanjournal.org measures to increase the demand for securities, attract foreign exchanges, brokers and banks to the stock market of our country were discussed. the issues of directing a certain percentage of assets of insurance companies to the stock market, allowing banks to purchase highly liquid securities in the primary market were considered. the need to strengthen the protection of the rights of investors and minority shareholders, improve the payment and collection of dividends was stressed. in addition, the task was given to develop corporate governance, transition to international financial reporting and international auditing standards. the development of the sector also depends on the qualifications of specialists and the literacy of the population in this area. today, there are only 300 specialists in our country with the appropriate qualification certificates. thousands of people work in this field in developed countries. attention was also paid to providing more information about the changes in the stock market and increasing the financial literacy of the population. the officials were briefed on the issues discussed at the meeting and priorities were identified. therefore, it is planned to develop a strategy for the development of the stock market in 2020-2025. it is planned to increase the ratio of free-floating securities to gdp by at least 10-15% by the end of 2025 [2]. 2. literature review in particular, raymond barr, a foreign economist, describes the stock market as follows. “the stock market, as a technical institution, performs the function of redistribution of free funds, assesses property rights, redistributes risks, redistributes information among participants in the business cycle. therefore, the stock market is a long-term idle capital market that collects and consolidates funds. these funds will be directed to long-term immobilization networks” [3]. in particular, gregory menkyu, one of the most modern and well-known foreign economists, describes the stock market in this way. “in many cases, such a definition of the stock market is common, that is, it is a set of financial institutions that allow those who wish to save, and in the stock and bond markets to lend their funds to borrowers” [4]. this is how foreign modern and well-known economists k.r.mcconnell and s.l.brew describe the stock market. “the stock market is an institution that recommends capital and brings together buyers” [5]. one of the leading researchers of the russian financial market mirkin y.m. describes the stock market as follows: “the stock market is a place in the financial market where the provision of temporary free cash resources through financial intermediaries based on the provision of consolidated financial services and the use of financial instruments in the form of commodity financial products” [6]. the concepts of stock market and stock market are common in economic literature and vocabulary. in particular, e.f.zhukov writes: “currently, there are three markets for securities involved in financing the economy: over-the-counter, stock (exchange) and street” [7]. the role of the intermediary in the capital market is the process of mobilizing long-term funds of the population, including funds of companies and organizations, and investing these funds in securities listed on the stock exchange. as a result, securities issuers and sellers receive funding [8]. according to y. rubin and v.soldatkin, the stock exchange is, first of all, a place where sellers and buyers of securities find each other, where the price of these securities is determined by supply and american journal of business management, economics and banking volume 10 march, 2023 p a g e | 55 www.americanjournal.org demand for them, and the buying and selling process is governed by rules and regulations. regulated, i.e. it is a well-organized stock market [9]. according to berdnikova, the stock exchange is the organizer of trading in the stock market [10]. according to l.chaldaeva and a.kilyachkov, government securities, corporate securities and derivative financial instruments (derivatives) will be traded in the securities market [11]. according to shokhazami, one of the leading scientists in the country, the securities market trading systems are the conclusion of a contract, verification of the parameters of the contract, clearing (settlement), fulfillment of the terms of the transaction (payment). and a market mechanism organized as a complex trading industry consisting of a set of economic, technical, technological and organizational tools that enable the transfer of securities to a new owner) [12]. the issuance of securities allows enterprises to implement large financial investment projects. for this reason, it is advisable to increase the number of joint stock companies in the regions of the country. an increase in the number of joint-stock companies will allow modernizing the production or service process [13]. 3. research methodology in this article, the scientific works and articles of foreign and local scientists dedicated to the analysis of sources representing the role and importance of the national stock market of uzbekistan in the economy are studied. economic research methods such as graphical grouping, economic-statistical analysis and synthesis, logical reasoning was widely used as a research methodology. 4. analysis and discussion of results it should be noted that all segments of the financial market are interconnected and move together. for example, the stock market also consists of the money market and the financial capital market, which includes securities with a maturity of up to one year in the money market, and securities with a maturity of more than one year in the financial capital market. thus, the stock market is part of both the money market and the capital market at the same time. as of january 1, 2022, 607 in the central depository 153 047.94 billion soums of the joint-stock company with a total face value of 12,211.14 billion units securities issue account being conducted (figure 1). figure 1. the total volume of issues and the number of shares issued as of 2021-2022 [14] 0.00 20,000.00 40,000.00 60,000.00 80,000.00 1,00,000.00 1,20,000.00 1,40,000.00 1,60,000.00 1,49,502.26 10,048.12 1,53,047.94 12,211.14 total volume of issues (billion soums) number of issued shares (billion) 2022 1,53,047.94 12,211.14 2021 1,49,502.26 10,048.12 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 56 www.americanjournal.org in 2021, the volume of securities issues will reach 3545.68 billion. the number of shares increased by 2,163.01 billion soums. increased by one. the central depository also maintains 365.6 thousand corporate bonds issued by 10 issuers with a total amount of 783.30 billion soums. their 374.13 billion soums. a total of 41.4 thousand units were issued by 5 llc’s. as of 01.01.2022, the state share in 234 joint-stock companies amounted to 125,322.1 billion soums (including the state depository in the form of shares of 222 joint-stock companies in the amount of 125,310.6 billion soums in the central depository). in 2021, the number of joint-stock companies with a state share in the charter capital will increase to 20, the existing state share the volume decreased by 2,279.0 billion soums. the volume of shares of economic management bodies in the charter capital of 163 jscs amounted to 7,482.3 billion soums. in 2021, the volume of assets of economic management bodies increased by 3,097.8 billion soums, and the number of jscs decreased by 13. figure 2. the number of joint-stock companies operating in the republic of uzbekistan as of 2021-2022 [14] the central securities depository shall ensure the single accounting of securities in the depository system of the republic of uzbekistan. in 2021, the central securities depository received 173 sets of documents for the issuance of securities by the authorized state body for regulation of the securities market. during the reporting period, the central securities depository accounted for a total of 122 issues, including 18 issues of primary and new, 95 issues of additional securities and 9 issues of bonds. issuance of securities of 8 issuers due to liquidation, part of securities issues of 28 issuers, one or more issues of 8 issuers and bonds of 6 issuers issues were withdrawn from the central depository. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 57 www.americanjournal.org figure 3. dynamics of changes in the state share in joint stock companies in 2021 [14] the central securities depository also keeps records of the rights of 51 investment intermediaries and their clients to securities. as of 01.01.2022, the number of clients of investment intermediaries who opened deposit accounts 715.60 thousand, including 60.00 thousand legal entities and 656.60 thousand individuals. compared to the same period last year, the number of depot accounts decreased by 0.96%. accounted by investment intermediaries. the total volume of securities at face value amounted to 8,408.86 billion soums. 2,452.25 billion soums were spent. pieces formed a security. the volume of securities accounted by investment intermediaries increased by 28.76% compared to the same period last year. table 1 information on the issue of shares accounted for in the central depository as of 2022 (territorial share issuers) [14] nu. regions billion soums number of joint stock companies 1. tashkent city 144 764,1 252 2. tashkent region 4 911,6 50 3. kashkadarya 2 938,2 43 4. navoi 2 556,0 18 5. fergana 1 327,7 44 6. andijan 921,1 36 7. samarkand 625,1 30 8. jizzakh 481,7 17 9. khorezm 311,4 29 10. namangan 300,7 22 11. surkhandarya 293,2 22 12. syrdarya 284,5 16 13. bukhara 205,7 35 14. republic of karakalpakstan 187,9 20 as can be seen from the table above, the highest number of joint-stock companies is 252 in tashkent. in particular, 144,764.1 billion soums were allocated for the issuance of shares. the city of tashkent is ahead. this shows that in our regional analysis, the tashkent sphere is at the top and the stock market is functioning optimally. 599 599 599 596 596 601 601 601 603 603 603 607 252 241 238 234 236 240 242 242 239 240 238 234 0 100 200 300 400 500 600 700 800 900 01.2021 02.2022 03.2021 04.2021 05.2021 06.2021 07.2021 08.2021 09.2021 10.2021 11.2021 12.2021 joint-stock companies with state share total joint stock companies american journal of business management, economics and banking volume 10 march, 2023 p a g e | 58 www.americanjournal.org concluding from the above theoretical issues, we have given the following authorial definition of the stock market. “the stock market as a segment of the financial market is an infrastructure element of public economic policy, which allows to solve various macroeconomic problems”. these problems include: increased concentration and generalized production; attracting free funds and distributing them among the necessary segments of the economic system; activation of the investment process; transformation of savings of business entities and the population into investment resources; increase the level of capitalization of income of market agents; the involvement of each household in the management of the market and the transformation of private property into the income-generating capital of a wide range of market agents. figure 5. foreign investments in the stock market of uzbekistan (number of foreign shareholders) [14] among these countries, russian shareholders are the leaders in the stock market of uzbekistan. this will have a positive impact on the company’s operations, as well as increase its financial stability in the future. 5. conclusions and suggestions in our opinion, it is appropriate to implement the following measures to improve the stock market in our country and increase its role in attracting investments: 1. it is necessary to bring the regulatory and legal documents into a single system and improve them on issues of compiling and presenting necessary information and reports on the state of the stock market, its participants, their securities and financial and economic activities. the regulatory framework related to the stock market should be simplified and obstacles should be removed; 2. it is necessary to establish a remote organization of the general meeting of shareholders of jointstock companies that are issuers of securities in the online mode. on this basis, the documents and reports submitted to shareholders will be electronic, shareholders time will be saved, transportation costs will be reduced, and one hundred percent participation of all shareholders will be ensured; 3. studying the experiences of developed countries related to the stock market, using the software and technical equipment used in them, and ensuring the qualification of stock market specialists will help 1,493 446 302 162 145 90 82 78 42 35 200 400 600 800 1,000 1,200 1,400 1,600 russia kazakhstan tajikistan kyrgyzstan switzerland germany ukraine usa cyprus great britain american journal of business management, economics and banking volume 10 march, 2023 p a g e | 59 www.americanjournal.org in achieving the set goals; 4. we believe that it is time to introduce new financial instruments into the practice of the stock market, in particular, government securities and derivative securities. for this, it is necessary to develop regulatory documents that encourage the circulation of new financial instruments by the competent state bodies. first of all, it is necessary to develop a special simplified procedure for issuing and registering corporate bonds [15]. the implementation of these measures creates a basis for joint efforts of stock market participants, achieving the set goals, effective use of the potential of the stock market for economic development, and increasing its role in attracting investments. literatura/reference: 1. s.a. obidov. development of the stock market is the most important factor of the national economy – “science and education” scientific journal, january 2021/volume 2 issue 1. page 207. 2. on october 7, 2019, president of the republic of uzbekistan shavkat mirziyoyev held a meeting on the development of the stock market. 3. barr r. political economy. t.-m. international relations, 1995, p.319. 4. m. gregory. principles of economics. spb .: peter kem., 1999, p.538. 5. mcconnell k.r., brew s.l. economics. m: infra m, 2003, p.62. 6. mirkin y.m., mirkin v.y. english-russian explanatory dictionary of financial markets. – m.: alpina publisher, 2008. 7. ed. e.f. zhukova securities market. 2nd ed., revised. and additional textbook. neck of the ministry of defense of the russian federation unity-dana, 2017 463 pages. 8. leonard onyiriuba, capital market dynamics, securities, and bank risk in developing economies, https://doi.org/10.1016/b978-0-12-805479-6.00026-2, bank risk management in developing economies addressing the unique challenges of domestic banks through risk management 2016, pages 511-533. 9. exchange business. textbook / ed. v.a. galanova, a.i. basova. m.: finance and statistics, 2000. p.20. 10. gitman l.j., jonk michael d. fundamentals of investing. m.: publishing house “work”, 1997. s.41-44. 11. tewles r., bradley e., tewles t. stock market. 6th ed.: per. from english. – m.: infra-m, 1997. p.101. 12. muxamedov f.t. directions for the development of securities trading systems in uzbekistan. 08.00.07 – author’s abstract of the dissertation of the doctor of economic sciences (dsc) on a specialty “finance, money circulation and credit”. tfi, tashkent-2019. 13. bakhtiyarovich, ochilov bobur. "analysis of investment activities of the republic of uzbekistan." e conference zone. 2022. 14. www.deponet.uz – prepared by the author on the basis of the official website: “central depository of securities”. 15. bakhtiyarovich o. b. investment activities and performance of gigamon companies around the world //czech journal of multidisciplinary innovations. – 2022. – т. 6. – с. 1-6. http://www.deponet.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 140 www.americanjournal.org the wonders of the unexplored cave in uzbekistan shakhnoza ashurova doctor of philosophy in philological science (phd), docent, business english teacher of the graduate school of business and entrepreneurship ashurovashani@mail.ru a b s t r a c t k e y w o r d s this article has been written from the story which was told by uzbek writer normurad norkobilov, who made an interesting expedition to the unexplored cave “peshigor”, which situated in zaamin district of uzbekistan. there too many authors whose stories were written about nature, for example as well-known american naturalist author ernest seton thomson who created thousand stories about animalistic genre by travelling wildlife of nature or jack london , murrey abraham, sidonie-gabrielle colette ei. there are many honorable naturalist authors in uzbekistan, such as, tog’ay murod, gofur gulom, abdulla qodiriy, shukur xolmirzayev, normurod norkobilov ei. normurod norkobilov is an uzbek writer who gives the motivation from nature to create his amazing stories, he made thousand expeditions, his love to the nature pushed up him to research every inch of the motherland. his stories are connected with the realistic wild and domestic natural life. in this article we can get an information which happened during the expedition. there were many interesting accidents, unforeseen circumstance. and the main fact that they found an ancient building inside the cave. mount, cave, expedition, risk, rock, hall, archeologist, writer. could there be an ancient monument in the depths of the cave? naturally, when you hear this, the answer "no" begins to ring in your mind. because it is unthinkable to build buildings in a cave, as if the place is dry. this seems to be a meltdown, not only for those who have never been to a cave in their lives, but also for those of us who have traveled dozens of caves from head to toe. however, in the words of our late poet friend sattor karabaev from zaamin district of uzbekistan, there are caves in our homeland that hide ancient buildings, and the peshigor cave in one of the jizzakh mountains is a clear example of this. at first, we didn't believe sattor karabaev's excitement. because in the process of studying and photographing various caves, we have not come across any ancient manmade monuments. therefore, it is difficult to imagine, our poet friend said: “the peshigor is not an ordinary cave, as you might think, it is a place where one of the country's heroes fought against the army of alexander the great in 330-328 bc. the monument in the cave that he told us about is one of the monuments of the ahrimaz period or it may be” he said. then someone said, "a stone in the cave," and wanted to laugh at himself. s. karabaev said very seriously: "no, according to our information, it mailto:ashurovashani@mail.ru american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 141 www.americanjournal.org is made of clay". it was after this statement that our interest increased and we decided to organize an expedition to the peshigor cave. unfortunately, due to the mistake of our lighting guy, the expedition failed on the first day. it is well known that there are peculiarly complex aspects of the work of exploring and photographing caves, and the process of preparation does not like indifference. being excited from the words of my poet friend i harried up to exam cave and we decided to explore the cave until the guys got ready. because the desire to see the ancient monument which in some part of the long cave was burning in our hearts like fire. we, holding one handkerchief, examined the first hall of the cave, and then proceeded to its long and wide second hall. the second hall scene was filled with rocks of various sizes, and we immediately realized that there was a high risk of the rock falling. so this part of the cave doesn’t like too much noise. but suddenly, the engine roar at the same time. before we can concentrate, huge of red stone fall from the ceiling next to us. our poet friend pulled me aside and clung to the wall in agony and shouted, "turn off the engine." then, the sound of the engine stopped immediately. we immediately returned to our team and met the guys who were in the first hall. the main culprit was that, our lighting engineer on advice of one of the local guys who joined us as a companion, instead of leaving the power supply outside the cave as usual, he had brought it in and set it on fire to test, as a result he was suffering from stone injury. "you have to go to the doctor as soon as possible, it's like a broken shoulder", he said. this was a great excuse for the members of the expedition, who were terrified of the falling of stones in the depths of the dark cave, and they flatly refused to take part in the expedition. this is how the first expedition failed. our next expedition was in winter chill. this time my poet friend didn’t join us, but instead of him his son, an employee of the district museum of local lore sundor karabaev and archaeologist valijon gaybullaev were with. since the cave is located on mount “morguzar”, if we talk about this mountain, it is located in the territory of zaamin district of uzbekistan, which means "the place of snakes". in the warm season of the year, snakes are really plentiful at this address. but now it's not summer, it's winter. it was snowing, and a cold wind was blowing from the mouth of the huge gorge in front of us. because we knew from the experience of previous expeditions to the caves that if we embrace the cave, we begin to live in another world, forgetting not only the bitter cold, but also the day and night. after all, in the second cave of amir temur, like the group of academician vinogradov, we lived for four days and nights. it was cold as it is now, and the inside of the cave was warm. as we walk along the ravine and reach the destination, we tie to the ropes each baggage, to prevent them from rolling down like a rock, fasten one end to a tree at the mouth of a cave that is blackened on a high cliff, and lower the other end to the bottom of the ravine. we start to lift food, firewood, cave lighting equipment and other equipment one by one. one of the disadvantages of this hard work is that sweat-soaked underwear freezes instantly in the cold and begins to sink into the body like a knife. that's when you start to miss the stove with the fire. a bonfire on the snow only warms the palms and fingers. once we have taken all the loads to the snow-free field at the mouth of the cave, that is, to the porch, we light a fire and warm ourselves. by the way, due to the rock on the hill, this cave is popularly called "peshigor", ie "peshayvonli cave". remembering the bitterness of the expedition that failed last time, this time we place the current-carrying device in the corner of the porch, check it over and over again to see if it works, and start pulling the wire into the cave. sundor and i will be in charge of this work. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 142 www.americanjournal.org because the peculiarity of the expedition is that if discipline is not followed, the work will never be as it should be. when the preparations are complete, we warm our bodies with the warm air of the cave, turn on the engine, turn on the lights, and freeze from the strange sight before us. last time, because of the weakness of the lights in our hands, a huge tower was wide open right in front of us, unnoticed. in the light of the bright lights, we observe the surroundings silently. on the colorful ceiling, like chandeliers, hung balls of bats, as if the walls of the cave were different from the ceiling. mother nature, as a clever artist and sculptor, decorated the walls of the cave so skillfully that we could not help but marvel. these colors were not as bright as the colors in the outside world, but they were unique. it is hard to believe that there are so many different colors in the depths of the earth, and as we progressed, the colors changed and faded. the hall of cave, which had fallen on us like a box during a previous expedition, no longer looked terrible to us, as if the stones on the ceiling were saying, "if you don't make too much noise, we can stay in our place for another thousand years". soon we realized that there were few places where the stones were dangerous, and that some ceilings were as smooth as the ceiling had been neatly crafted by the masters. at the base of the walls, there were rocks of various shapes "statues", in one of which you could see the image of a woman with a knot, and in another the most beautiful wrestler. if you felt like you were walking in a museum and gave a little freedom to your imagination, you could see a lot of wonders in this “underground kingdom”. unfortunately, the cave is not a museum no matter how hard you try to feel free, the slight fright constantly pushes you to vigilance and keeps you in bright mind. in a way, this is true, because in caves you always have to be vigilant. so, most of those who set foot in the cave because of the slight fright, do not fully comprehend the wonders of its depths, and enter curiously, but quickly try to leave the cave, some of them say, "if you don't feel the dust under your feet, there is no point in living ..." there is no soil in the cave, where one can only walk on stones. this is a natural phenomenon. little did we know, however, that, contrary to this natural state, we would encounter a thick layer of soil in the cave, and under the guidance of our archaeologist friend we would have to excavate many ancient artifacts from that layer of soil. we encountered the next layer of soil layer. then, as a result of distraction, we immediately remember the forgotten monument, and we gather our thoughts and focus on the stage. in our view, there was too much soil here. could it be that the ancient monument, which we have been searching for with hope, and which is still standing in our consciousness, has already collapsed and turned to dust? at the same time, i look at the archaeologist valijon gaybullayev, who is standing next to me on the left, and i read the same meaning in his eyes. then he said: “i did not believe in the existence of an ancient monument in this cave, to be honest, i thought it was a flax. here i am now. after all, so much soil does not come into being by itself. there is something here. my suggestion is to go to the cave net and see what is there, and then we will return to our tracks and start digging. ” this offer is accepted, we continue to move forward, and we come across a neighboring soil sol. my archaeologist friend is focusing on the soil in the cave hall, and i am focusing on the unique colors on the wall. not surprisingly, the colors on the walls resemble a collection of paintings created by rebellious artists with different theoretical and practical views, the basis of the complex was the american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 143 www.americanjournal.org appearance of all available colors and their darkness and hunger, and in some places an unobtrusive system of colors. this hall was 15 meters wide, about the same height, and 65 meters long. if we are going to bring the exact detail related to the peshigor cave, it is one of the largest and most unexplored caves in central asia. the length of the cave is still unclear, right, the man who entered the cave thinks that after a few hundred meters, he hit the high and slippery rock in the cave net and hit the bottom of the cave on his own. no, the cave does not end, it continues again through the huge arch at the top of the cliff. but how much? no one knows that. because no one has climbed to the top of the cliff so far. however, there are various legends among the people about the duration of the cave. when we hit the rock, which is about twenty meters high, without looking for a piece of rock in the net part of the cave, we start digging in the first earthen mortar at the entrance to the cave, making sure that the ancient monument mentioned by our poet friend is in one of the earthen soles. as the young men realize that the search will continue until dawn, they begin to see the fate of their stay by building boulders on one side of the cave. so someone was looking at the excavations, someone was making bonfire and cooking, and someone was watching the work closely, as if a treasure was coming out of the ground, in short, we were all one soul. soon various pieces of pottery began to emerge from the thick soil, the lower part of the monument wall showing its height. the clay of the monument was restored from baked raw bricks. the bricks found were undamaged, sturdy, and vigorous, even though they had been lying underground for some time. valijon's first confession was: “the monument seems to have been destroyed by people, not time. because the bricks were so strong, the monument could last for another thousand years. secondly, there is no whole thing, everything is broken, as if the battle were in full swing. if you notice, the entrance to the cave is also in the form of a labyrinth, i.e. it still extends side by side, and then upwards, towards the cave. i suspect that a human being has a hand in this ... ”indeed, the entrance to the vast and huge cave, like a tower, is still on the right, still on the left, and then climbing up, the guard soldier alone can easily stand up to dozens of enemies. was possible. so, some historical processes took place in this cave. valijon, who was among the bricks, spread out a large number of pottery fragments found in the depths of the earth and examined them one by one. he said: but what amazes me most is the presence of an old building rebuilt of clay, not stone, in the cave. the question of why is constantly running through my head. perhaps this monument really belongs to the centuries bc, that is, to the time of ahrimaz. such puzzles can be solved only by archaeologists who are interested in this work". it was midnight at this time. it was a chilly winter outside, and the inside of the cave was as warm as a stove. as the boys lay on the ground, they slept soundly, valijon, sundor, and me were still digging the fireplace very carefully, without even imagining sleep. sundor, who worked tirelessly in his shirt, always looked up at the high ceiling and said, "why did they need to build a house in this cave, which is cool in summer and warm in winter?", valijon led us to the neighboring dirt road: “let's take a look at this room before dawn. i notice the strange color of the soil” he began to search for something on the ground, like a sapper looking for a mine, looking down at the sharp light of the lamp in his hand. then he called us to him and pointed at his feet and said, "judging by the color of the soil, there is an old furnace here". we look at the ground, but we do not notice any difference in the color of the soil. then he begins to dig slowly. indeed, an ancient stone and the bones of many animals were found under the ground. soon he found another stone in the southern part of the hall. pieces of pottery were also present here. valijon, who finished his work in the morning, said: “we can assume that this room was the kitchen of any team that lived in the cave. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 144 www.americanjournal.org but much remains to be done to find out who lived in the cave and why the buildings were rebuilt. so, at your request, i have completed my work, and have been able to discover that there is indeed an ancient monument in peshigor. the rest is up to other archaeologists. ” one night we became so accustomed to the nature of the cave and its warm air that we forgot the dominance of the bitter winter frosts outside. as we grab the frozen rope in the cold, we begin to descend to the bottom of the ravine, thinking that in ancient times the locusts lived at this place. this question has not been answered yet. literature 1. лондон жек. оқ сўйлоқ. – т.: ғафур ғулом номидаги нашриёт-матбаа ижодий уйи, 2010. 2. михеева а.п. лирические дневники колетт: автореф. дисс. канд.филол.наук. – л., 1990 3. ashurova sh.a. inglizzabon g’arb adabiyti va o’zbek adabiyotida animalistika janri xususiyatlari: avtoref. diss.fil.f.d. phd. – o’zbekiston jahon tillari universiteti. 2020. 4. n.norqobilov. tamaddun izlari. – t.: cho’lpon. 2019. 5. tog’ay murod. tanlangan asarlar. birinchi jild. – t: sharq nmak bosh tahririyati. 2008. 6. http://www.ziyouz.com/images/books. 7. https://n.ziyouz.com/portal-haqida/xarita/o-zbek-ziyolilari/shukur-xolmirzayev-1940-2005. http://www.ziyouz.com/images/books american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 45 www.americanjournal.org brand awareness attributes and customer repeat patronage of selected fast food establishments in rivers state, nigeria uboegbulam, gideon chukwunwem (ph.d) and essien comfort department of hospitality management and tourism university of port harcourt correspondence e-mail: gideon.uboegbulam@uniport.edu.ng cellphone: 08036665762 orcid id: https://orcid.org/0000-0001-6127-5866 a b s t r a c t k e y w o r d s the primary aim of this study was to establish a relationship between brand awareness and repeat patronage of selected fast food establishments in rivers state. the study adopted the correlational research design of quasi-experimental and convenience sampling was chosen based on the easy-access issues for researchers in gaining information from respondents. structured questionnaire was used as an instrument where 120 respondents from the selected fast food establishments became the unit of analysis of the study. the data collection was analyzed by using peasrson’s product moment correlation with the aid of package for social science (spss) version 20.0. the findings of the study revealed that there is a significant relationship between brand recognition, brand recall and customer repeat patronage. the study there recommended that managers or owners of fast food outlets must be intentional in developing awareness programs or strategies that matches the sophistication of the patrons and also managers should seek proper research on how best to penetrate the consciousness of its patrons brand awareness, brand recognition, brand recall, purchaser loyalty, customer repeat patronage introduction the quick food service sector is rapidly becoming the brand-new alternative for dining activities and the understanding of this has brought about its growth. this commercial enterprise is located in nearly every nook of the essential towns in rivers state, hence the sturdy competition among quick food service managers who use every advertising skill available to them to strongly position their brand to fulfill the excessive demands from their clients. the multiplicity and identical products and services on offers have equally driven brand managers to competitively improve recognition and brand recall with the goal to gain a larger share of the marketplace. to achieve this, brand awareness is deployed as a strategic marketing practice to reap their corporate goal. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 46 www.americanjournal.org creating brand consciousness or visibility is a completely big venture given the peculiarities and uncertainty of consumer conduct as the market is characterized with customers with expertise and maturity which had afforded managers new advertising and marketing situation because they have to meet up with sophisticated crop of customers. within the modern context of commercial environment as it relates to creating brand awareness, a product is core and most valuable asset of any organization. brand awareness plays a huge role on how the product performs in the market of any industry (kotler & armstrong, 2015). creating brand awareness is an advertising and marketing attempt that enables organizations, in this situation fast food establishments to gain clients’ interest to their offerings whilst growing and establishing consumer focus. the maximum essential in achieving brand’s fulfillment is held with the aid of creating its advantageous image and making sure its recognizable. the more a popularity a brand enjoys, the stronger it’s acceptances by consuming populace. whilst a consumer is glad with identifying with a brand, step by step she/he will become a loyal customer. brand awareness could also be described as the power of the corporate brand node, or in other phrases, hint in reminiscence (ormeno, 2007). to enlighten extra, also means the potential of customers to understand, recognize or prefer the brand under any conditions. that is additionally supported ojasalo & ojasalo (2010), when they determined brand awareness as a purchaser’s capability to identify and do not forget the brand in all sorts of circumstances. in addition, ormeno (2007), maintains that after the customers understand the brand name or brand elements, they must consider the organization in a certain industry or business. many studies (karam, et al, 2015; seturi, 2017 and shahid et al, 2017) had been carried out within the domain of strategic marketing and such a lot of has considered branding as a whole procedure, simplest few research in particular inside the rapid food quarter of rivers state have taken into consideration the function of brand awareness and how it impacts repeat patronage. this paper therefore, seeks to fill that knowledge hole by examining the role of brand awareness and customer repeat patronage of fast food establishments in rivers state literature overview inside the marketing discuss, brand awareness is described as the strength or an extent to which a brand consciously occupies a patron's mind (pappu, quester, & cooksey, 2005); and it takes place as soon as there's an interface between the brand, wherein the consumer acknowledges or familiarize themselves with the brand. with that, awareness can result into brand recognition and to brand recall because brand awareness has a way of cognitively and affectionately influencing the the behavioral tendecnies towards the product and service on offer (hakala, svensson & vincze, 2012). according to jin and villegas (2007), they opined that brand awareness enables purchasers to distinguish among competing brands in the markets. moreover, they asserted that branding through awareness creation focus is is essential is gaining brand equity. kumar & moller (2018) claim, brand awareness influences brand familiarity which motivates customers to undertake the brand products whilst new services or products is been brought. in keeping with aaker, (1991) purchasers’ selection are most instances based totally on their familiarity with the brand. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 47 www.americanjournal.org brand recognition brand recognition is how fast a consumer acknowledges and discriminates the brand whilst any of its elements is shown (keller, 1993). brand recognition is when the consumer is given a complete idea of the real advertisement to to see if it matches the patron description. brand popularity is to verify earlier publicity to the brand whilst the brand is given a cue. when the customers should decide between the the fast food they want to dine in, they may decide on the fast food service that they are most likely to fast foods they have heard about or have visited before. thomas and williams (2013) stated that brand recognition is extra than just a cue that impacts preferential desire; different to some previous research like newell and shanks (2004) showed that different cues may have a substantial effect on inferential preference in preference to reputation. recognition is an emotional mission and relates to the proper hemisphere of the brain; the proper hemisphere of the brain refers to the emotional questioning (krugman, 1977). hauser (2011) concluded that recognition is an critical element in making a decision, however it's also one of the cues which might be taken into consideration whilst the acquisition decision is made. the purchasers who own strong brand reputation hold robust tendency to buy the brand (biscaia et al., 2013, 2014; lu et al., 2014) and purchase conduct (ndlela & chuchu, 2016). primarily based on above arguments following speculation is proposed brand recall brand recall refers to how properly a client recollects a brand while given a sure scenario (prashar et al., 2012). brand recall is the duplicate of a few targeted item/brand for which patron has perunderstanding or revel in (bagozzi & sailk, 1983). brand recall is the mental reproduction of some goal item experienced or learned in advance (bagozzi & sailk 1983). brand recall is the patron capability to take into account a brand when some cues associated with the brand is given, requiring that customers correctly generate the brand from memory (baumann, hamin & chong, 2015; keller, 1993). the importance of reminiscence can not be ignored when we reflect on consideration on recalling a brand as memory elements help in retrieving the brand and additionally b ra n d a w a ren ess brand recognition brand recognition r ep ea t p a tro n a g e brand loyalty american journal of business management, economics and banking volume 14 july, 2023 p a g e | 48 www.americanjournal.org the opposite competing brands and thus creating a attention set for the client to make the final purchase (nedungadi, 1990). the brand that could create picture and personality rightly in the minds of the purchaser has a better risk of revoking recollection, and for various classes, brand recall is enough for producing income. in the current world, customers noticeably depend on their remembrance ability when creating a purchase selection because of the lack of time available to take in the opposite marketing efforts of the marketer (prashar et al., 2012). consistent with nedugandi (1990), creating a visible brand through awareness programs or efforts is very essential for rrand retrieval. the brand retrieval refers to the potential of the customer to not forget the brand from the memory when creating a purchase choice. the brands which can be recalled without problems are favorably evaluated by the client (labroo & lee, 2006), and therefore have a high threat of being purchased. repeat patronage repeat purchase refers to the behavior of a customer purchasing the same product or service multiple times from the same vendor. it is an essential aspect of customer loyalty and reflects the level of satisfaction and trust that customers have in a brand or product. according to research, repeat purchase is crucial for the profitability and long-term sustainability of a business (gupta & lehmann, 2020). in this essay, i will discuss the factors that influence repeat purchase behavior and its importance to businesses. the factors that influence repeat purchase behavior can be categorized into three groups: productrelated, customer-related, and external factors. product-related factors include product quality, brand reputation, packaging, and design. research has shown that product quality is a crucial determinant of repeat purchase behavior (grewal, roggeveen, & nordfält, 2017). customers are more likely to repurchase a product if it meets their expectations and provides value for their money. brand reputation also plays a significant role in repeat purchase behavior. customers are more likely to repurchase from brands they trust and perceive as reliable (grewal et al., 2017). customer-related factors include customer satisfaction, loyalty, and trust. customer satisfaction refers to the degree of fulfillment that customers experience after purchasing a product or service. research has shown that satisfied customers are more likely to repurchase from the same vendor (gupta & lehmann, 2020). customer loyalty refers to the commitment of a customer to repurchase from a particular brand or vendor. loyalty is built over time and can be strengthened through excellent customer service, personalized communication, and rewards programs (gupta & lehmann, 2020). trust is also a crucial factor in repeat purchase behavior. customers are more likely to repurchase from vendors they perceive as trustworthy and reliable. external factors that influence repeat purchase behavior include competition, pricing, and environmental factors. competition can affect the willingness of customers to repurchase from a particular brand or vendor. pricing also plays a significant role in repeat purchase behavior. customers are more likely to repurchase from vendors who offer competitive prices and value for their money. environmental factors, such as economic conditions, social trends, and technological advancements, can also influence repeat purchase behavior. repeat purchase behavior is essential to the long-term profitability and sustainability of a business. repeat customers are more profitable than new customers as they require less marketing and advertising expenses (grewal et al., 2017). they also provide a steady source of revenue for the business, which is american journal of business management, economics and banking volume 14 july, 2023 p a g e | 49 www.americanjournal.org crucial for its long-term sustainability. repeat purchase behavior is also a reflection of customer loyalty and satisfaction, which can lead to positive word-of-mouth and referrals, thus attracting new customers (gupta & lehmann, 2020). repeat purchase behavior is a critical aspect of customer loyalty and satisfaction. the factors that influence repeat purchase behavior include product-related, customer-related, and external factors. businesses must strive to provide high-quality products, excellent customer service, and competitive prices to encourage repeat purchase behavior. repeat purchase behavior is also essential to the longterm profitability and sustainability of a business, making it a crucial aspect of marketing and customer relationship management. purchaser loyalty customer loyalty refers to the extent to which a customer chooses to do repeat business with a particular organization, brand or product over time. it is a crucial factor in business success as it can directly impact revenue, profitability and market share (bowen & chen, 2020). research has shown that loyal customers tend to spend more, refer others, and are less likely to switch to competitors (reinartz & kumar, 2019). one of the key drivers of customer loyalty is customer satisfaction. a satisfied customer is more likely to become a loyal customer, while a dissatisfied customer is likely to switch to a competitor (mittal & kamakura, 2015). to achieve customer satisfaction, businesses need to meet or exceed customer expectations in terms of product quality, service, and overall experience. additionally, businesses can also create emotional connections with customers through personalized experiences, loyalty programs and engagement on social media platforms (vogel et al., 2020). another important factor in customer loyalty is trust. customers who trust a brand are more likely to remain loyal to it (luo et al., 2020). trust is built through consistent delivery of quality products and services, transparency in business operations, and ethical behavior. furthermore, businesses can foster trust by offering guarantees, providing reliable customer support, and demonstrating commitment to customer needs (luo et al., 2020). finally, businesses can also leverage the power of brand loyalty to drive customer loyalty. brand loyalty refers to the attachment and allegiance that customers feel towards a particular brand. research has shown that customers who exhibit brand loyalty are more likely to remain loyal to the business over time (lai et al., 2021). to build brand loyalty, businesses need to focus on creating a strong brand identity, communicating brand values effectively, and consistently delivering on brand promises (lai et al., 2021). customer loyalty is a crucial aspect of business success, and is influenced by factors such as customer satisfaction, trust, and brand loyalty. to build customer loyalty, businesses need to focus on delivering quality products and services, building emotional connections with customers, fostering trust, and creating strong brand identities. a real patron loyalty can be referred to as when clients are each willing to these two elements, in any other case, it can most effective be called a spurious purchaser loyalty if simplest mind-set or conduct factors are located (baldinger & rubinson, 1996). loyalty can also be separated from short time period loyalty and long-term loyalty. brief time period loyalty isn't always a real patron loyalty because a longterm patron will no longer buy other manufacturers even though there is a higher desire (jones & sasser, 1995). consumers with a robust commitment to a particular brand will continuously search for any american journal of business management, economics and banking volume 14 july, 2023 p a g e | 50 www.americanjournal.org advertising pastime associated with the brand (bandyopadhyay, gupta, & dube, 2005). moreover, consumer loyalty can be measured in dimensions: affective loyalty and motion loyalty. affective loyalty is a selected brand desire from accumulative delight to preceding the usage of experiences. however, affective loyalty just represents that a repurchase aim. it does now not mean that purchasers will take purchase motion. it's far very tough to mention that clients maintain consumer loyalty (kan, 2002). action loyalty suggests that customers now not most effective have choices to a particular brand but additionally perform purchase motion repetitively, and come to be action inertia (kan, 2002, lin, 2005). in terms of a behavioral perspective, aaker (1991) defined that brand loyalty should be measured through the quantity of brands purchased, percent of purchases, and future buy aim. whilst a client is dependable, she or he continuously purchases the brand, despite the fact that the brand makes adjustments, which includes increasing price or changing product features (aaker, 1991). brand awareness and repeat patronage tandoh (2015) conducted a study on the impact of brand awareness on customer loyalty: the study was a case study of sinapi aba savings and loans ghana limited. data for the investigation was elementary i8n nature and 301 questionnaire was administered to participants the findings of the holds that, brand awareness practice is a very prominent feature in the repurchase intentions of savings and loans industry in ghana khurram et al (2018) examined the influence of brand recall, brand recognition in understanding actual repurchase. the study examined the impact of the two properties of brand awareness, i.e., brand recall and brand recognition on actual repurchase of the consumers also testing the moderating effect of price consciousness in the relationship between brand recognition and actual purchase. majority of the respondents for the study were female shoppers at the retail stores as they are the consumers as well as they play an active role in home budgets. two separate studies were conducted, i.e., for brand recognition and brand recall, and the survey used 175 responses (125 for brand recognition and 50 for brand recall). the results revealed that brand recall and brand recognition have a positive relation to actual purchase. malik (2013) examined the importance of brand awareness and brand loyalty in assessing purchase intentions of consumer. the aim of this endeavor is to identify the effect of brand awareness and brand loyalty on purchase intention. questionnaires were distributed to collect the responses from the employees in services sectors and conveniently available general public while descriptive statistics and regression analysis were used to analyze the data and draw the conclusions. brand awareness and brand loyalty have strong positive association with purchase intention. managers all over the world should strive to promote the brand awareness along with brand loyalty as both of them contribute towards positive purchase intentions alkhawaldeh (2017) evaluated the effect of brand awareness on brand loyalty: mediating role of brand commitment. study empirically attempts to discuss this particular issue by examining the relationship between brand awareness and brand loyalty. also, it seeks to investigate the mediation role of brand commitment in initial relationship to tackle the mixed results in the prior attempts. the data were collected from customers of islamic bank brand in mafraq governorate in jordan. pls-sem techniques were applied to a sample of 90 customers to test hypothesized relationships. the results revealed that brand awareness and brand commitment have a significant and positive relationship with brand loyalty. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 51 www.americanjournal.org in addition, brand commitment was found to be a mediator in the relationship between brand awareness and brand loyalty. shwastika and keni (2021) examined the effect of brand awareness, social media marketing, perceived quality, hedonic motivation, and sales promotion towards consumers intention to purchase in fashion industry. this research was conducted to investigate the effect of brand awareness, social media marketing, perceived quality, hedonic shopping motivation, and sales promotion towards purchase intention on the fashion industry. descriptive research was used and this study was included in a crosssectional study where the data collection period was only carried out within a certain time. the questionnaire was distributed online using google form and every statement in the questionnaire is using five points likert scale. the total sample was 154 respondents who live in greater jakarta, aged between 17-35 years old, and have purchased brand x products. convenience sampling was used and all data were analyzed using the partial least squares structural equation modelling (pls-sem) approach. the results have shown that there is a positive significant relationship between brand awareness, perceived quality, and sals promotion on consumer purchase intention while social media marketing and hedonic shopping motivation insignificant on purchase intention. methodology the main objective of this study was to determine the relationship between brand awareness and customer repeat patronage of selected fast food establishments in rivers state. the study adopted the correlational research design of quasi-experimental. this design was adopted because it investigates the relationship between two variables without the researcher manipulating or controlling any of the variables. a correlation reflects the strength and direction of a relationship between two variables or more which can be positive or negative. convenience sampling was chosen based on the easy-access issues for researchers in gaining information from respondents. structured questionnaire was used as an instrument where 120 respondents who are patrons of these selected fast food establishments became the unit of analysis of this study. the data collection was analyzed by using package for social science (spss) version 20.0 and alpha coefficient were calculated in order to test three main variables of this study. all statements were measured on a 4-point likert scale anchored at 1(strongly disagree) and 5 (strongly agree). analysis and discussion of findings ho1 there is no relationship between brand recognition and customer loyalty correlations brand recognition customer loyalty brand recognition pearson correlation 1 .279** sig. (2-tailed) .000 n 120 120 destination loyalty pearson correlation .279** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 52 www.americanjournal.org from the result above, pearson correlation co-efficient is 0.279 while p. value (2-tailed) is 0.000. since p-value of 0.000 is less than 0.05, we therefore reject the null hypothesis and accept the alternative hypothesis. this implied that there is significant relationship between brand recognition and customer loyalty the first hypothesis (ho1) stated that there is no significant relationship between brand recognition and customer loyalty. this was tested at 5% significance level using pearson correlation. the result from the analysis showed a p-value of 0.000 while the alpha value was 0.05. the result of the analysis showed a coefficient value of 0.279 with r2 value which implies that 77% of customer loyalty can be determined through brand recognition while 23% can be attributed to other factors. with this information, the null hypothesis was rejected and the alternate was accepted which state that there is a relationship between brand recognition and customer loyalty. this findings is in line with the findings of tandoh, (2015) who posited that brand awareness is effective when it can be easily recognized by the buying public and the consistency of the patrons will ultimately lead to an eventual loyalty. likewise, this study also supports the findings of khurram et al (2018) were it was revealed that brand recognition can lead to actual purchase and repeat purchase. the scholars having observed the behavioral tendencies of patrons asserted that people only patronize products or services they are familiar with hence, recognition will help tilt the public to become attached and loyal to such a familiar product or service ho2 there is no significant relationship between brand recall and customer loyalty from the result above, pearson correlation co-efficient is 0.293 while p. value (2-tailed) is 0.000. since p-value of 0.000 is less than 0.05, we therefore reject the null hypothesis and accept the alternative hypothesis. this implied that there is significant relationship between brand recall and customer loyalty the second hypothesis (ho2) stated that there is no significant relationship between brand recall and customer loyalty. this was tested at 5% significance level using pearson correlation. the result from the analysis showed a p-value of 0.000 while the alpha value was 0.05. the result of the analysis showed a coefficient value of 0.293 with r2 value of 85% which implies that customer loyalty can be determined through brand recall while 15% can be attributed to other factors. with this information, the null hypothesis was rejected and the alternate was accepted which state that there is a relationship between brand recall and customer loyalty. this findings is in line with the findings of alimen and cerit (2009) who asserted that brand knowledge and ability to recall the brand under any circumstance can lead to loyalty. they went further to posit that its only brands that created the need awareness that has the correlations brand recall customer loyalty brand recall pearson correlation 1 .293** sig. (2-tailed) .000 n 120 120 customer loyalty pearson correlation .293** 1 sig. (2-tailed) .000 n 120 120 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 53 www.americanjournal.org capacity to not just be recognized but occupy the patrons consciousness in that it becomes easy for them to recall the brand and still go for it. furthermore, this study upheld the findings of malik et al (2013) which holds that brand awareness has the capacity to instigate repurchase intention and customer retention. practical implication in today's business world, especially business that operates within the service sector such as food and beverage operators who offer identical services as well as compete on the same front and have same target customer prospectus, brand awareness is a much needed marketing practice that should be innovatively, informatively and attractively designed to gain the attention of potential and existing brand patrons. managers of these fast food establishments should upgrade their brand awareness programs and aggressively implement a well customer oriented and focused awareness strategies to improve patronage, solicit repeat visit, improve customer retention and good share of the market. this study helps fast food establishments operating in rivers state to focus on the use of brand awareness as a marketing tool to increase brand recognition and recall which will help encourage patron’s repeat patronage and customer loyalty. conclusion given the competitive nature within the fast food business sphere, the focus of many fast food establishment is now way beyond attaining customer satisfaction but now of creating a long term association between the patrons and the fast food organizations. to edge every other competitor, fast food operators must make sure that they release enough of their product and service information to their target market and must be convincing enough in their brand awareness creation to make sure that it captures their brand recognition and brand recall possibilities. the value of awareness in branding efforts cannot be taken lightly in the context of fast food establishments. the chief goal of creating brand awareness is to make the brand visible, recognizable and recall-able to the customers and to put the brand in a position were customer decision will favour them by having a fortified recall ultimately leading them towards the service purchase, repurchase and loyalty. the evidence of a successful brand awareness campaign is reflected through brand recall and recognition which have a strong positive impact on the actual purchase made by the consumer. recommendations based on the conclusion, the study recommends that i managers or owners of fast food outlets must be intentional in developing awareness programs or strategies that matches the sophistication of the patrons ii. managers should seek proper research on how best to penetrate the consciousness of its patrons references 1. aaker, d.a. 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(2013). the devil you know: the effect of recognition of brand and product ratings on consumer choice. judgment and decision making, 8(1), 34-44 30. vogel, v., evanschitzky, h., ramaseshan, b., & woisetschläger, d. m. (2020). standing out in a crowd of apps: how mobile app engagement strategies drive sustained usage intentions. journal of business research, 112, 211-220. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 1 www.americanjournal.org framework for exploring the concept of "leadership" and 8 common leadership styles adilov botir baltabaevich associate professor of the department of “regional economics and management” ph. economic sciences adilov_1964@ mail.email shaykhova madina nodir kizi faculty of economics direction management of nuu named after m. ulugbek madisonshaykhova @ gmail . com a b s t r a c t k e y w o r d s subject a person who plays a dominant role in the country, in the company, in the family, is gifted with the talent to rule the “minds” of people for subsequent success. the problem of leadership has always concerned the world as a whole and each person individually, being the key and relevant for many areas of life: business, politics, sports, etc., because leadership exists wherever there is collective activity and organization, this is what surrounds us every day. therefore, a considerable number of studies and publications are devoted to this topic. this article explores the qualities of leadership, and their use in various situations, the nature of leadership, approaches to the study of leadership, the concept of leadership behavior. objectives the key goal of the work is to study the concepts and essence of leadership, to conduct a study of the relationship between the leader and subordinates. theoretical and methodological basis of the research achievements of domestic and foreign science in the study of leadership features. in the course of the work, general and special literature, articles and seminar materials, as well as international practice were worked out and studied. conclusions it is concluded that every person can have leadership qualities. but the art of leadership is to identify these valuable qualities in yourself and be able to use them for positive purposes. the research and results of the article are summarized and the main conclusions are formulated. leader, society, qualities, power, post. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 2 www.americanjournal.org introduction true leaders are not those who hold high positions or have power, but those who own the hearts and minds of people. therefore, a leader needs to create force fields around himself, magnets that attract talents, and not just employees seeking jobs: he is able to change, first of all, his own life, forcing circumstances to work for him, and not against. management, leadership became an object of study when, at the beginning of the 20th century, management began to be studied for the first time. however, only between 1930 and 1950. the study of leadership on a large scale and in a systematic manner was first undertaken. these early studies aimed to identify the properties or personality characteristics of effective leaders. according to personality theory of leadership, also known as the theory of great people, the best leaders have a certain set of personal qualities that are common to all. developing this idea, it can be argued that if these qualities could be identified, people could learn to nurture them in themselves and thereby become effective leaders. in 1948, stogdill made a comprehensive review of leadership research, where he noted that the study of personal qualities continues to give conflicting results. he found that leaders tended to be distinguished by intelligence, desire for knowledge, reliability, responsibility, activity, social participation, and socioeconomic status. however, stogdill also noted that effective leaders exhibited different personality traits in different situations. he then concluded that today's behavioral scientists would agree: "a person does not become a leader simply because he possesses some set of personal characteristics." fig.1. leaders: formal and informal leadership qualities soul and mind qualities of the manager an experience 1 dreaminess rationality 2 creativity perseverance 3 ability to inspire people sobriety of thinking 4 a penchant for experimentation caution 5 imagination analytic mind 6 personal power official power leadership is a special kind of human activity, different from administrative paperwork and planning. leadership is not something brought in from the outside, it arises between people, and is not created for them. in modern management, leadership is characterized ambiguously:  leadership is a type of power, the specificity of which is the direction from top to bottom, and the carrier of such power is not the majority, but one person or a small group of people “leadership is power exercised by one or more individuals” (j. blondel ); american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 3 www.americanjournal.org  leadership is a managerial status, a social position associated with decision-making, this is a leadership position. society is a complex, hierarchically organized system of social statuses and their corresponding social roles. the social status of the leader presupposes and even requires the fulfillment of a social role in the manner of a leader; leadership is “a position in society, which is characterized by the ability of the person occupying it to direct and organize the collective behavior of some or all of its members” (l. downton );  leadership is an influence on other people (v. katz , l. edinger ), but not any, but meeting the following conditions : a) the constancy of influence is not a one-time short-term impact (a terrorist who hijacked a plane cannot be considered a leader), b ) breadth of influence the impact is carried out on all members of the troupe; c) a clear priority in influence, the relationship between the leader and the followers is asymmetric, one-sided orientation from the leader to the members of the group, d) the organizational leader relies not on the direct use of force, but on the authority or recognition of the legitimacy of the leadership. the dictator, who keeps the group in subjection by force, does not hesitate to be considered a leader (prison guard). not all researchers agree with this ( blondel allows the use of a system of coercion);  leadership is a natural socio-psychological process in a group, built on the influence of a person's personal authority on the behavior of group members. influence is understood as the behavior of a person that makes a change in the behavior, attitudes, feelings of another person. influence can be exerted through ideas, the spoken and written word, through suggestion, persuasion, emotional contagion, coercion, personal authority and example. what makes a person strive for leadership? the subjective mechanisms of the formation, nature and direction of leadership are clarified by the psychoanalytic theory of z. freud. the theory revealed the following types of leaders: a) for many people, the possession of leadership positions performs subjective -compensatory functions, allows you to overcome and suppress various kinds of complexes feelings of inferiority, incompetence, and so on. submission to the leader also finds an explanation in the theory of psychoanalysis the subjective acceptance of leadership is laid down in childhood as a need for a patron, an authoritative person. in this sense, the authority and patronage of the head of an organization are similar to the authority and patronage of the head of the family. b) followers of z. freud (frankfurt school, adorno, fromm ) revealed a special type of personality, predisposed to authoritarianism and striving for power. such a personality is formed in unhealthy social conditions that give rise to mass frustrations and neuroses states of depression, oppressive tension, anxiety , hopelessness and despair. a person has a desire to escape from all this into the sphere of domination and subordination. c) most people, studies show , do not seek power at all. do they become leaders? yes, although power itself is not a value for them. power is only a tool, a mechanism for obtaining various kinds of benefits, a means of achieving other goals: material (high income, prestige, profitable connections, privileges) or spiritual and moral (achieving high goals responsibility for a common cause, helping the weak, establishing friendly relations in team). d) motivation can also be a game a person perceives the leadership process as an exciting, exciting game. in this case, the leader's motive becomes the very content of managerial activity the solution of complex and socially significant problems in the process of organizing interaction and communication with people. the nature of leadership is dual: it distinguishes the business sphere (formal leadership) and the sphere of relations (informal leadership). both spheres are inseparable from each other, as the organizational, technical and socio-economic aspects of management. fig.2. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 4 www.americanjournal.org influencing through position alone is called formal leadership, which is identified with leadership. the process of influencing through resources other than the position held is called informal leadership. such leadership is due to personal and situational factors. everyone can be a leader, from the lower class to the highest, stating the words of scientists "leaders are not born, leaders are made." consider the point of view of the carlyle founder and author of “how to lead” david rubenstein, the factors for becoming leaders are: 1. the ability to discern and catch luck sometimes it is very important to be at the right time in the right place next to important people, to find the very moment when fascinating ideas captured the brain, or just to be on the white zone of life. it is true that we do not control the movement of luck, but the task of the leader is to be able to understand the situation and quickly find a solution. 2. do not be afraid of hard constant work “life itself is not an easy thing” this is what the adult generation has been saying and repeating to us since childhood. so they prepared us for painstaking work over the years to achieve at least some height. if we take the most common example, even in order to cook a dish, it is not enough to know the recipe, you need to be able to handle the ingredients, in which dishes it is best to cook them, and for this there must be practice and constant self-improvement. 3. learn from mistakes everyone has stumbled in their lives, everyone has made mistakes. it is important to accept them, learn from them, and step over the formed negative emotions: anger, sadness, stress, fear, shock and anxiety. “he who correctly points out my mistakes is my teacher; he who correctly notes my faithful deeds is my friend; he who flatters me is my enemy.” – sun tzu. 4. persuasiveness it is impossible to be a leader if there are no people following him. the leader must be able to convince other people to follow him, listen to his ideas, motivational speeches and perfect deeds. and also be able to inspire people to start something new, incredible and unknown to the world. at the same time, an effective leader must do his job better than others, and his energy must be enough to motivate others. high self-motivation is a sign of leadership. 5. values here it is important to correctly place your values and make it clear to the outside world. every selfrespecting leader has a set of positive qualities in the form of trust, honesty and responsibility. but they should not hide somewhere inside and wait for their moment, but on the contrary, in every act leadership areas sphere of relations (informal leadership) business area (formal leadership) american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 5 www.americanjournal.org and decision they should manifest themselves in the first place. the leader takes responsibility for the result, does not shift it onto the shoulders of subordinates, keeps business cleanliness and treats colleagues fairly, influences the energy of the entire company. trust in a leader is recognition of his high merits, merit of authority, recognition of the necessity, correctness and effectiveness of his actions. this is an internal agreement with the bearer of authority, a willingness to act in accordance with his instructions. 6. self-confidence in this block, we will consider the period of crises, when the rules of the game change. turning points, revolutions, political or information wars, as well as the well-known global covid epidemic , show who the leader really is. the leader does not flaunt his weaknesses, objectively assesses reality and does not lose confidence in himself. i must understand that every step in such a moment plays an important role in the lives of millions of people. the idea that the main distinguishing feature of a capable organizer is the ability to quickly find effective ways and means of solving problems is confirmed at every step. an interesting statement on this subject by napoleon bonaparte: “my genius lies in the fact that with one quick glance i embraced all the difficulties of the case, but at the same time all the resources to overcome these difficulties; my superiority over others is due to this. 7. striving for something new and unique the rate of change, the amount of information, and the level of uncertainty have increased so much that, without training, any recognized talent and successful leader could end up in the pages of an unknown instruction book. leaders are often looking for new doors of opportunity, new ways to solve old complex problems, new clearer and more innovative ways to communicate ideas. at this point, i would like to stop and consider the words of president shavkat mirziyoyev: “as folk wisdom says, “the river of life does not stand still”. today, relying on the invaluable heritage of our people, we can say with good reason that we have every opportunity to create the foundation of a new renaissance in uzbekistan. it all depends on how wisely we use this unique potential.” by this i wanted to convey that the past is a good and instructive lesson, so that in the future, learning from the mistakes of our ancestors, to be able to apply all the possibilities of the state and people in general. it's also a talent. 8. charisma and communication skills the leader is able to negotiate with senior management, colleagues from other areas, subordinates, partners. and the leader perfectly understands and knows that each of them needs a different negotiation strategy. charisma only improves and embellishes the situation, delivering results faster than others at a lower cost. all of the above factors play a major role in becoming a leader. each person may have these factors on the way, but not everyone can take advantage of them, the reason for this may be a lack of knowledge and experience. in order not to miss your cherished chance, you need to tame children from childhood to read books, broaden their horizons, make it clear that you always need to help develop our main muscle, the brain. from the speech of the best of our time, the leader of the president of the republic of uzbekistan shavkat mirziyoyev: “all of us are aware that education and upbringing are of decisive importance not only in today's life, but also for the future of any state and society. the more profound knowledge we give to children at school, the faster the sectors of our economy based american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 6 www.americanjournal.org on high technologies will develop and social problems will be solved.” “today we have set ourselves a strategic task to create the foundation of the third renaissance and consider it as a national idea. the systems of preschool, school, higher and secondary specialized education, scientific and cultural institutions are four interconnected links of the future renaissance. we consider kindergarten teachers, school teachers, professors and lecturers, scientific and creative intelligentsia to be the four most important pillars in the formation of the era of the new renaissance.” the head of our state sets a common goal education and its development. one of the best examples to follow is our great ancestor amir temur . we will study its best sides and principles. as the first president of uzbekistan islam karimov said: “... whoever wants to understand the uzbek name, the power of the uzbek nation, its justice, its limitless potential, its contribution to common civilization and its confidence in the future, must remember the image of amir temur ". the activity of amir temur characterizes him as a far-sighted politician and diplomat. the leader of a powerful state went beyond the possibilities and boundaries of his time and led to the formation of new systems. he used turkish, mongolian, arab-persian traditions in creating new foundations of statehood. in subsequent centuries, all the rulers of the eastern countries used this political school as a model. possessing the gift of foresight, amir temur acted as a catalyst for progressive historical processes. sahibkiran thought globally, recognizing the universal right to life, seeing the peoples of the world in a single geopolitical space. he was the first to establish relations with europe on the basis of friendship and cooperation. in his letters to the kings of europe, he proposed that bilateral mutually beneficial relations be determined by agreements. in the middle ages, with their numerous wars and strife, the military skill of sahibkiran was an important tool in the implementation of defense and control in the regions. amir temur created a strong intelligence school. he was the first in the world to divide the army into seven divisions. the more a person studies his martial art, the more opportunities open up. the undefeated leader of a well-trained army enriched military science with new knowledge and experience and raised it to the level of an art. amir temur ruled his state not only by force. if this state had been built only on the basis of power, then, firstly, it would not have existed for so long. based on historical sources, it would be fair to say that amir temur ruled his state on the basis of intellect and the rule of law. his words: “i did nine parts of state affairs through advice, events and consultations, and the other part with the help of the sword” is a vivid proof of this. on the eve of his death, the great commander amir temur bequeathed to his descendants: “i am glad that during my reign i did not allow the strong to harm the weak. remember financially dependent people, take care of them, be decisive and courageous. to rule a great country as long as i do, hold the sword in your hands with honor and dignity... if you keep my commandments and act with justice and mercy in your other affairs, peace in the land of turan will be preserved for a long time. if mutual conflicts are allowed, the enemies will start riots and riots that cannot be controlled. if you are one soul and one body, no one can prevent you from fulfilling my last will and testament. these wise covenants have been preserved and have reached our times through the centuries. as if it feels the breath of the present. our great ancestor calls us to justice, loyalty and unity. it calls for honesty, compassion and honesty in order to avoid conflict and hostility. what is this leadership? to paraphrase voltaire's words, we can say that "leadership, like love, everyone talks about it, but no one really knows what it is." yes, many books have been written about leadership, even more articles, the topic of leadership is being developed by psychologists, sociologists, specialists in the field of management and quality, but one recognized and accepted american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 7 www.americanjournal.org concept of leadership still does not exist. a person who wants to become a leader must have certain qualities that must be different in different situations. it is recognized that leadership qualities can be learned. thanks to these qualities, a person can gain authority, and employees recognize him as a leader. the leader performs many social roles, each of which requires specific knowledge and skills. among the problems that are within the competence of the leader, the main ones are: the approval and development of a certain type of organizational culture; building effective communication in the organization; formation of working groups and their management; managing conflicts; building coalitions and developing partnerships; timely response to the dynamics of the external environment and change management. the work of a leader is connected with many sciences, such as psychology, sociology, law, ethics, and economics. the manager must understand people, understand their needs, be able to communicate with various people. each person is unique and, understanding the motives of the behavior of a particular employee or candidate, soberly assessing his abilities and potential, you can apply it most effectively. leadership, like management, is to some extent an art. perhaps this is the reason why the researchers failed to develop and substantiate a unified theory. list of references 1. radislav gandapas . leader charisma. edition. llc "mann, ivanov and ferber", 2019.с-257. 2. rob goffey , gareth jones. why should people follow you?. 2008s-240 3. a. v. ravino . foundations of leadership. textbook . m: bstu . 2019. p-85. 4. https://www.epravda.com.ua/rus/columns/2020/09/20/665300/ 5. https://uprav.ru/blog/10-kachestv-nastoyashchego-lidera/ 6. https://mirziyo.uz/ru/tema/education/. https://www.epravda.com.ua/rus/columns/2020/09/20/665300/ https://uprav.ru/blog/10-kachestv-nastoyashchego-lidera/ https://mirziyo.uz/ru/tema/education/ american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 30 www.americanjournal.org the importance of international stock markets in the country and its impact on the economy mamayusupova shakhina ulugbek kizi tashkent state university of economics group of bn – 91 student of bachelors degree e-mail:shahinamamaysupova28@gmail.com ashurboev farrukh alisher ogli tashkent state university of economics group of mgf – 01, student of 2-year master's degree a b s t r a c t k e y w o r d s when stock markets rise or fall sharply, it can alter how confident people feel about their finances and how much they might have to spend in the future. it can also have a bearing on how companies allocate their funds and the amount of capital that they are able to raise to expand their operations. when stock markets rise or fall sharply, it can alter how confident people feel about their finances and how much they might have to spend in the future. it can also have a bearing on how companies allocate their funds and the amount of capital that they are able to raise to expand their operations. improving business conditions is convenient government policy and the country's management of the business environment equipping national firms with quality and price in the current competitive environment modernization of production and technical reengineering to gain advantage disarming urges. through innovative technologies and modern science rapid introduction of achievements into production, production composition diversification is achieved. stock, markets, government, capital, investment, ownership, security, finance, obligation, instruments, investor.. introduction securities are the person who issued them and their owner dividend confirming property rights or debt relations between or to pay income in the form of interest and from these documents money that implies the possibility of transferring the outgoing rights to other persons documents. securities records in the form of forms, certificates or accounts to be in the form of and in settlement, as well as as collateral for loans can be used. securities between legal entities and individuals distributed on a voluntary basis. stocks, bonds and government bonds of companies are valuable are the main types of papers. securities are in the capital of the enterprise participation or lending of money and income in the form of dividends or interest gives the right to receive. a fund because the stock provides income to its owner is traded on the stock exchange at a certain rate. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 31 www.americanjournal.org a stock exchange is an organised marketplace, licensed by a relevant regulatory body, where ownership stakes (shares) in companies are listed and traded. listing happens in the so-called ‘primary market’, where a portion of a company’s shares are made available to the public. the company often uses the listing to raise funds through issuing new equity shares (an initial public offering or ipo). investors can then buy and sell these listed shares in the so-called ‘secondary market’. while listing in the primary market may result in a flow of funds from investors to the firm, the trading between investors in the secondary market does not. the activity in both the primary and secondary market occurs within a framework of laws, rules and regulations, aimed at ensuring the existence of fair, transparent and orderly markets. to achieve these objectives, these rules and regulations will typically provide for the protection of investor assets, the process for transferring ownership of shares, the requirements with which companies that are listed on markets must comply, and processes for ensuring settlement of disputes. exchanges also ensure that trading occurs according to predefined, public rules and that information about the prices at which investors are willing to buy and sell, and the prices at which instruments have sold (preand post-trade transparency) are publicly available [1]. apart from this, stock markets and economic functions may not be distinct to many people but, in fact, they represent a relationship between the disparate sectors in social society between savers and producers as the saving sector needs to employ their savings in more beneficial and ambitious projects. moreover, the productive sectors always require financial sources to assist them to continue to perform more in function of economy, in which stock market performance and functions of basic economy transfer funds from people who have amassed surplus to those who have a paucity of funds (henry, 1997). when stock markets rise or fall sharply, it can alter how confident people feel about their finances and how much they might have to spend in the future. it can also have a bearing on how companies allocate their funds and the amount of capital that they are able to raise to expand their operations. taking the above into consideration, it would be foolish to assume that the average american is in no way affected by the buying and selling of shares[2]. depending on the nature of financial transactions, there are several ways to categorize the financial market t. according to the principle of return, the financial market is divided into two: • debt obligations (consumer persuasive money) and the capital (property) market. in the debt market, money is a temporary loan and the money received is used for personal consumption. • capital (property)the right to receive income from money invested in the market is sold and bought. it's in the market the funds are used as capital and generate profit. capital with this in mind market can be divided into 2 segments: loan capital market and stock market. on loan capital market is lending capital in the form of money with the condition of paying interest. this short-term obligations are in circulation in the market. these are mainly of the state and banks obligations. shares in the primary and secondary markets of securities, bonds, promissory notes, etc. are traded. internationalization of economic life as a result, the world mb appeared. the experience of countries with a developed market system shows that the real average part of the owners is to attract public funds to the stock market formed through free funds in the economy in the context of economic crises stabilization of the economy by attracting financial instruments,as well as strengthening of money circulation and circulation of national currency. capital development of the market or, in general, the financial market together with the banking sector barometer of the economy, the state of the economy and the investment environment in the country is an indicator. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 32 www.americanjournal.org picture1. ten the active at the republican stick exchange initially, the authorities wanted to offer the market 5% of uzauto motors to raise $90 million. however, an underwriter’s assessment of demand by showed that the market won’t be able to buy more than 1% of the stock. this means that the potential amount of the expected ipo is about $17.3$19.5 million. it was supposed that investors applied before december 22 to make the ipo happen on december 23. nevertheless, the deadline for accepting applications was rescheduled to december 28 and then to february 15, 2023. throughout 2022, there were 80,700 transactions with securities for $423.9 million in the stock market of uzbekistan. this is a 12% growth in terms of transactions and a fourfold increase in terms of money. however, the key driver of this growth was a set of big transactions, not a development of the market itself. investors bought big stakes in companies in the negotiated market where buyers and sellers know each other very well. for instance, 98.57% of shares of ahangarancement were sold this way for $167.8 million. this figure accounts for about 40% of the entire amount of trading. stakes in kapitalbank, garant bank and other companies were sold the same way as well. investor sentiment can be easily seen by stock indexes. the three key indicators – uci, eqre blue and kd – were in the red zone at the end of 2022. the first index, which includes shares of the rse issuers, declined by 63.85%. eqre blue dropped by 23.20%. it includes nine popular stocks. kd (including 11 stocks) lost 4.78%. given the inflation rate of 12.3% in uzbekistan, losses for investors were twice as big.even though market indexes significantly declined (compared to 2021), some stocks achieved quite good results. for example, the value of hamkorbank’s shares has doubled [3]. enterprises can issue preferential securities. they are simple combines the characteristics of stocks and bonds. their values rises and falls with the price of the company's shares. they always are they are similar to fixed payment relationships. that is why most people don't sell their stocks. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 33 www.americanjournal.org uzbekistan’s stock indices rose over the week. uci added 4.23% to close on friday at 1065.63 points, while eqre blue rose to 2095.35 points (+1.94%). what contributed to such results. the eqre blue basket includes nine liquid securities. for one of them, the auction is not yet held (uzmetkombinat). the four components of the index showed gains over the week. the shares of hamkorbank grew by 8.51%. this is followed by uzvtortsvetmet (+6.01%), kizilkumcement (+4.71%) and quartz (+0.03%). a negative correction was observed at kuvasaycement (-4.18%), ipoteka-bank (-4.08%), uzbek republican commodity and raw materials exchange (-2.43%) and uzpromstroybank (-0 .08%). all in all, 1,357 transactions with securities worth 8.44 billion soums took place on the stock exchange during the week. volume is up 160%. this growth was due to several large transactions. with the securities of the insurance company kafolat, transactions were made for 3.91 billion soums, and with shares of kattaqo’rg’on yog’-moy – for 2.64 billion soums [4]. in conclusion, improving business conditions is convenient government policy and the country's management of the business environment equipping national firms with quality and price in the current competitive environment modernization of production and technical re-engineering to gain advantage disarming urges. through innovative technologies and modern science rapid introduction of achievements into production, production composition diversification is achieved. found in the fight in the domestic market the firm is leveraging its use in a stronger global market. if the internal struggle is difficult, this company is in the international market the greater the success. from the abovego out and observe and produce a full-fledged environment in our republic implementation of these measures to modernize production and further increase the competitiveness of our national products. we believe that it is appropriate to increase. references: 1. the role of stock exchanges in fostering economic growth and sustainable development 2. how the stock market affects the u.s. economy by daniel liberto updated february 28, 2023 3. stock market in uzbekistan cools down published january 13, 2023 20:15 4. investment promotion agency under the ministry of investments and foreign trade of the republic of uzbekistan american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 62 www.americanjournal.org the effect of covid-19 virus on banking execution ammar imad khalaf halboosh ammar.khalaf@uobasrah.edu.iq college of administration and economics / qurna, university of basrah-iraq ali sh. abdeol.wahab alialasdi589@gmail.com college of administration and economics / qurna, university of basrah-iraq sajjad habeeb younus basrah university college of science and technology, basrah, iraq sajjadhy.ma@gmail.com a b s t r a c t k e y w o r d s this paper evaluates the outcomes of the covid-19 epidemic on europe, asian banks and countries with oil as well it reviews bank stock bills from all over the world in order to evaluate the effect of the pandemic on the banking productiveness. in addition, it studies the influence of finance sector strategical declarations on the working of bank stocks. generally, the outcomes indicate that the predicament and the countercyclical offering task that banks are anticipated to act have put banking schemes under substantial strain, with bank stocks underachieving their local marketplaces and other non-banking financial companies. policy initiatives have had varying degrees of success. recently, the banking schemes has adjusted constantly – it has been reinvented to preserve with customer prospects and the requisite for cost decreases. the epidemic has hastened digitalization in the banking scheme though, the necessity for innovation and digital plans have been an significant element in banking even before the epidemic. banking performance, banking systems, impact of covid-19. 1. introduction the coronavirus pandemic differs from previous pandemics in that globalization and interconnectedness between countries play a crucial role in this outbreak. (mas-coma, et al, 2020). nevertheless, the infection is spreading at a much quicker ratio at the moment. while globalization has a beneficial effect on employment and economic development, a huge number of confirmed covid-19 cases has a detrimental impact may manifest itself during a pandemic disease (farzanegan, et al .2020). almost every country in the world has been affected by the pandemic, which has spread fast and put straining on health and economic systems. the influence of this epidemic might be larger than that of the previous calamity, but it is still too american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 63 www.americanjournal.org hasty to tell. it has disrupted many financial and affected firms and families, as well as the related vagueness. in march 2020, the united states treasury market likewise revealed anxiety. commercial bond markets and money mart capitals were also sternly stressed. most importantly, financial marts fast regained. banks are a vital economic pillar, and the managing performs they employ have an effect on the economy's retrieval amid the epidemic. banks have a substantial part in the economy since they support local and foreign trade. any major disturbance in this system would underlay bad consequences on the entire society. trust is essential to the smooth running of the monetary system and the economy in this sector. (van esterik-plasmeijer, 2017). the banking system has always been at the core of crises. yet, because we are treating with a dilemma relating universal health concerns, the crisis has a distinct impact. in previous crises, banks were considered to be part of the issue, but this time, however, they are considered part of the solution. this approach reinforces the importance of banks in the covid-19 crisis, and bank initiatives are impacting the economy as a whole. the outbreak has completely changed the world economy and has had a significant impact on the majority of businesses. the banking system is critical in this situation because it is essential from the economic point of view. the banking system has continued to change in recent years — it has been rebuilt to meet client requirements as well as cost-cutting demands. the pandemic has pushed the banking industry's digitalization, although the need for innovation and digital policies was an aspect in the banking industry prior to the pandemic. moreover, banks are a crucial economic leader, and their management strategies have affected the post-pandemic recovery of the economy. banks play an important role in the economy by facilitating domestic and international commerce. the global banking system is expected to be strained as a result of the crisis and banks' countercyclical advancing role., having various impacts dependent on their features and pre-crisis vulnerabilities (demirguc-kunt, 2020). henceforth, the current study set forward the following questions: • how has the world economy was impacted by the covid-19 outbreak.? • what are the fruitful methods that banks were taking for confront the pandemic? • how have the banks' performance changed before and after covid-19? besides, the descriptive study is taken in this research paper. descriptive research is research in which information is collected without affecting the environment. 2. study objective: the purpose of this article is to explore banking strategies used during complicated crises in oilproducing countries, as well as in europe and asia, with an emphasis on the current pandemic. it compiles the available information and correlates publicly available documents on the banking sector's response to covid-19. it is a question of how the banking sector can cope with complex crises and how complex crises challenge banking management practices.furthermore, this paper will look at how the banking system was before and after covid-19. the study examines whether the banking system was stronger and better constituted before the pandemic, as well as recapping the lessons learnt from the last crises. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 64 www.americanjournal.org in the present study, the database was built by doing a thorough search for all relevant material on the financial system implications of the covid-19 pandemic. the information was collected by reading scientific journals, company audit reports and expert opinions to answer the expected questions. a literature search was carried out using the following keywords to categorize these articles: pandemic of covid-19, banking methods, crisis, and financial catastrophe, performance. this page provides readers with the latest recent information about the pandemic's economic impact, notably the banking system. articles were chosen, and then a decision was made on which ones to include in the analysis based on the abstracts, articles, and notes taken. a set of five-twenty articles is collected and only relevant articles were selected for the study. we selected articles for this paper based on our aims and research questions, and then created an overview of the most noteworthy works on the topic, as shown in exhibit 1: exhibit 1: topics of previous literature literature review regarding the notion of banking performance, the achievement of the firm's objectives within the agreed-upon time period and at the lowest feasible cost while employing current finances is referred to as results. for example, the performance of an administrator may be described as "profitability" or "competitiveness" for the business or employee, the work environment or the client's satisfaction with the services provided. the variety of alternative methods stemmed from the concept dictated by the multiplicity of groups that comprise an organization. profitability ratios as a bank's performance measurement tool several writers have defined corporate financial performance using both roa and roe measures.. while for asset’s return, this inconstancy indicates funds rent-ability used and expresses the ability of these funds to deliver a specific level of operating profits. as many authors, including adams and santos (2005) as well as eisenberg et al., have employed this measurement (eisenberg, 1998). the roa computation measure that will be used throughout the survey is: roa = net income / total assets return on equity: the financial profitability coefficient is another name for this ratio. it is recognised as one of the most common financial indicators used to assess banks' performance. it shows the role played by equality in achieving the desired objective. it quantifies, in a way, the investor's level of return, meaning that the higher it is, the more efficiently the money allocated performance of banks the covid19's impact on the banking system explore banking strategies bank sector can deal with complex crises american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 65 www.americanjournal.org is used to produce a good result. numerous writers, including bouri and bouaziz, have employed this performance metric (2007). efficiency as a tool for measuring bank performance efficiency is defined as an internal measurement of business performance; it is typically evaluated by cost, production, income and it is measured by the number of funds required to generate an entity of products or services (johonsen and schole, 1997). in other words, it is the capacity to utilize as few resources as feasible to attain a certain degree of efficiency. it evaluates the lack of waste in resource utilization. therefore, efficiency assesses banks' productive performance as well as their financial performance. yet, the character of what is operative determines its efficacy. it is the ability to achieve the desired or expected result with a view to achieving the goal. objectives may be divided into one or several categories, such as time, number, cost, quality and cost-effectiveness. effectiveness is also a characteristic of a person who successfully completes a task and achieves established goals. efficacy is one of the attributes used by managers to assess employees in the workplace. two non-parametric approachesbourke (1989) investigated the performance of banks in twelve european, north american, and australian nations from 1972 to 1981. he found that concentration, liquidity, inflation and size all had positive impacts on the performance and profitability of banks. molyneux and thornton's (1992) study replicates bourke's methods (1989). between 1986 and 1989, they investigated the factors of banking performance in eighteen european nations. bourke's observations were validated by the outcomes. to date, a profitability survey of 584 national and international commercial banks working in the 15 european union countries from 1995 to 2001 using the average asset yield (roaa). the results indicate that the profitability of local and foreign banks within the european union is influenced by the bank's unique characteristics (volume, capital adequacy, administration effectiveness) , the organisation of money markets and macroeconomic conditions (inflation and real gdp growth) (pasiouras & kosmidou, 2007). in addition, between 1985 and 2001, athanasoglou et al. (2008) studied the impact of bank, industry and macro-economic variables on the profitability of greek banks. apart from the size of the banks, all bank-specific determinants have had a significant influence on the profitability of the banks, the assessment concludes that the profitability of the banks is not affected by concentration and ownership. 3. covid-19 impact on banking system as it is displayed in the below exhibit 2: exhibit (2): the pandemic's impact on the banking sector (after, sylwester kozak, 2021) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 66 www.americanjournal.org this disease has the same global economic impact as a major banking crisis, producing uncertainty, increasing poverty and shutting down most commercial operations. banking crises are often associated with a temporary but severe reduction of economic development and prosperity. it is essential to point out that in the year following the financial crisis, economic growth has fallen considerably, with negative repercussions on the economy for years, which means that the previous banking crises now have major economic consequences. furthermore, europe is on the risk of collapsing.the covid-19 crisis increased the sense of urgency, reiterating jean monnet's warning that europe would be put to the test during a crisis (kenny, s., lennnard, j., & turner, j. d., 2020). the banking sector is changing and playing an important role in the economy by providing services that affect people's everyday lives. banks provide financial stability and security to individuals and families. savings are encouraged and invested in ways that assist the economy expand when the banking sector is robust. it's a trying moment that has ramifications not simply financially but also psychologically. (ventriglio, a., et al, 2020). the fact that the job offer now outnumbers the need is one of the most fundamental developments brought about by the covid19 outbreak. however, in this situation, firms must operate with prudence, consideration of the problematic social climate as well as the close psychological climate (pinzaru, f. et al.2020). furthermore, the pandemic is having an effect on stock market indices in general. during this time of predicament, banks play an important role in helping the population cope with the pandemic by aiding the government, small and big businesses, and individuals. banks need to adapt to the challenges of the covid-19 pandemic to help build resilience for businesses, individuals and others. however, the effectiveness of a bank-supported economic recovery is dependent on banks' resilience and financial soundness. default loan losses and higher rwa will reduce bank capital (mckinsey & company.,2020). the covid-19 pandemic has impacted many aspects of the banking sector, including their operations, new operations and procedures. because of the vital importance of banking, they have been unable to close every branch and ensure people have access to financial resources. about a quarter of bank branches in many countries and territories have closed due to employee security, staff shortages and a decline in general trade during the epidemic. many of the other 75% are working fewer hours and have fewer people. (kpmg, 2020b). they must concentrate on the plan that will define their destiny despite all of the concerns swirling around them. as a result, they must prioritise survival concerns in their business continuity planning, changing branch hours, staff mix and hours, moving appointment only branch visits and temporarily closing select branches are just some of the options available (pwc, 2020b). all of these changes in how they function will surely affect the financial sector's future. banks with significant loan publicity, specifically, export industries and small businesses can see their regulation rates increase significantly during or after the outbreak (barua, b.,2021). another factor to be evaluated is the borrower's performance and ability to meet their loan obligations (disemadi, h. s.,2020). many people have faced financial difficulties as a result of the covid-19 epidemic, which can affect the performance of banking systems. the covid-19 pandemic could be the most significant financial sector threat in recent history. it has caused the world to shift toward banking to continue normal transactions such as paying american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 67 www.americanjournal.org bills, buying groceries, and shopping for goods. the banking industry has adjusted some of its old practices and is now looking for new ways to make life easier for clients (naeem, et al.2021). additionally, the development of new payment methods has benefited from the use of the internet and banking applications. online banking and payments are a quick and easy way to conduct business. this speedier digitalization will continue to grow, especially because uncertainty is strong right now, and major banks are better prepared for a significant drop in loan volume than traditional or conventional banks, which are more susceptible. (tarazi, a., 2020). because technology advancement and digitization make financial services more available to customers, customers respect a need-based sales strategy. the willingness of a bank to innovate has favorable effects on purchasing intentions (yip, et al. 2018). banks must emphasise digital transformation and transfer of traditional banking services under these circumstances, as this does not happen on its own. according to capgemini's world retail banking report 2020, digital banking services are now preferred by 57% of clients, up from 49% prior to the epidemic. the financial industry, on the other hand, will take time to modify and reform. some people feel that new trends and technology will eventually replace current banks, while others believe that technology will help and improve existing financial institutions. the entire banking sector, on the other hand, will make the shift to a more integrated and digital organization. banks must continue to develop these techniques, as the trend toward digitization has reached previously unreceptive demographics, such as the elderly or people living in remote areas. asian banks are a fantastic illustration because of this since they have hastened the launch and growth of digital consumer services while avoiding severe customer communication issues (dahl, j.,2020). furthermore, liquidity risk assessments appear to be reduced when liquidity assistance measures are implemented. when liquidity support measures were announced, smaller banks and governmental entities also reported huge anomalous profits. has favorable effects access to central bank refinancing and attempts to address bank funding shortages appear to have had a calming effect on markets during the crisis, as evidenced by the bank stock outperformance surrounding these events. negative abnormal returns in bank equities, on the other hand, are linked to countercyclical prudential actions. banks can drain some of their reserves according to prudential measures. they also convey clearly how determined officials are to lessen the pandemic's financial toll. but the fact that bank stock values decline whenever these measures are discussed suggests that they will be put into practice (claessens, s., 2005). at the end, the outcomes of financial policy pronouncements are vaguer. while such statements haven't been related to a rise in bank stock prices as a whole, they have been associated to a rise in individual bank stock prices, the liquidity premium seemed to be reduced by both corporate purchases and policy rate decrease. that is, banks with weaker fluidity experienced better stock returns during the announcement period. the assumption suggests that profit rate policy, as well as quantitative easing, remained important tools at the start of the crisis, as markets became more comfortable with these actions in the wake of the global financial crisis of 2008 (gfc) (reinhart, 2009). this is illustrated by the figure exhibit 3: american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 68 www.americanjournal.org exhibit 3 the largest international banks' monthly market capitalisation from december 2019 to september 2021, when the coronavirus pandemic occurred. (in billion u.s. dollars) 3.1 measures taken by banks we can't deny that the corporation was completely unprepared for the economic downturn, which, as a result of the income shortfall, had to increase to cover operational expenses in cash. banks in particular are anticipated to play a significant role in absorbing the shock by providing urgently needed capital for the financial industry. under these unusual circumstances, central banks and governments undertook a wide range of policy measures. while some programs aimed to slow the short-term tightening of financial conditions, others sought to enhance the flow of credit to businesses, either directly or through the manipulation of the credit market. although credit organizations are expected to play a substantial countercyclical role in bolstering the actual sector, their actions have a number of implications for the banking industry's long-term sustainability. for instance, asset quality may worsen when lenders exhaust their current buffers, jeopardizing the functionality of the system. because the crisis is anticipated to continue even after the lockdowns are lifted and economies start to recover, the overall impact of these policy changes on the banking industry is largely unknown. the lack of liquidity in the early stages of the emergency was obvious, it was made worse by the stock market and foreign exchange market volatility. we show that banks with lesser liquidity buffers suffered bigger price reductions than usual (especially in march), demonstrating a rise in the interbank liquidity premium. additionally, the combined shock brought on by the price conflict between saudi arabia and russia made bank stock price declines worse, particularly for institutions with considerable exposure to the oil sector. the epidemic will cut global gdp by 3.2 percent in 2020, experts at the international monetary fund claim (imf). advanced economies (ae) saw the biggest drop in gdp (4.6 percent ), while it fell the least in emerging market (em) countries (2.1%), including europe's developing nations (ede) countries (2%). 2021) (international monetary fund). in the second quarter of 2020, the biggest losses were in the retail, commercial real estate, and hotel and tourism sectors, with american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 69 www.americanjournal.org global sales falling by 80%, 60%, and 50% year on year, respectively. (international monetary fund. 2020). various central banks contend that these detrimental processes spread to the financial sector, particularly banks, resulting in a significant tightening of lending regulations as well as an escalation of the financial situation (european central bank, 2020). fear on the part of consumers over the scope of the pandemic's spread led to a decline in demand for loans, current money, and consumer goods and services. however, despite the covid-19's influence waning in the first half of 2021 and the economy improving, the substantial risk to which the banking industry is exposed remained (european central bank, 2021). faced with thousands of new infections every day, many major world economies, such as the united kingdom, have been forced to adopt harsh sanitary standards, which are likely to decrease household earnings and the economic viability of businesses. uncertainty about how enterprises and, as a result, banks will react to potential alterations to public assistance rules and the requirement to cease credit holidays, and the pandemic's spread leads others to wonder: what level of credit losses would cause banks' profits and equity to decline to the point at which they will not be able to meet regulatory requirements for capital? moreover, as the pandemic spreads, some people wonder: how many credit losses would it take for banks to lose enough money and equity to stop meeting regulatory requirements for capital? banks performance we contrast the stock price returns of banks throughout the first three months of the year with those of their various home markets. by mid-february, the pandemic's effects had already started to negatively impact non-bank and bank corporate performance, with their downward trajectories closely tracking one another. by the end of march, the values of business and bank stocks had decreased to less than 70% and 60% of their beginning-of-year levels, respectively. after that, non-bank companies continued to steadily enhance their performance, reaching over 90% of their levels from the previous year by the beginning of may. while stock returns for banks were 70% lower than they were at the beginning of the year, they did not experience the same level of recovery. markets anticipate an increase in this bank risk premium. this research further demonstrates that the reduction in stock prices is unique to banks and not to all financial firms, as investors seem to account for the increased strain the banking industry is experiencing. the market's pricing of bank risk appears to differ across bank characteristics. following the covid-19 crisis, banks with more exposure to the oil sector (i.e., those exceeding the 75th percentile distribution of oil exposure) saw lower returns than banks with less exposure. surprisingly, smaller banks (i.e., establishments with less than the 2019 median mean assets) outperformed larger banks after the significant decline in stock prices in late march. the additional risks in banks with low capitalization did not seem to be priced more severely by investors. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 70 www.americanjournal.org banks have suffered the most throughout this crisis compared to other businesses as well as previous crises. for example, despite a recent partial rebound, the decrease in bank stock values is currently comparable to that which was seen during the same period following the collapse of lehman brothers in 2008 (graph 1, above). the increase in cds spreads fits the same description. in response to these changes, the long-term rating outlooks for banks have started to worsen, suggesting worries about the effect of covid-19 on bank earnings. 4.2 the impact of covid-19 on arab financial systems the cumulative effect of covid-19 and an unprecedented decline in oil prices has put the financial systems of certain arab countries on the verge of collapse. the arab area is witnessing a historic reduction in demand for stocks and commodities, as well as tightening financial conditions, greater risk premiums, and weak banking sector resilience. this necessitates quick action by arab governments and central banks to maintain financial sector liquidity and allow essential credit at whatever cost during the relief period, followed by additional financial measures throughout the recovery period. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 71 www.americanjournal.org increased volatility in oil markets is predicted to diminish risk appetite and change capital market investments, particularly in oil-rich nations. when generated uncertainty during the first three weeks of post-peak is compared for both the period 2008-2009 and the present crisis, the variability in the current downturn is over ten times greater than that of the great recession. this high level of uncertainty is projected to produce an adverse investment climate, particularly in gulf cooperation council (gcc) economies. low oil prices will have an indirect impact on oilpoor economies through fewer-than-expected remittances and decreased tourism and investment from gcc countries. furthermore, as a result of the simultaneous danger of covid-19 and rising oil prices, the saudi economy and financial sector have been encountering challenges. the pandemic has caused severe asset quality degradation in saudi banks, substantial losses in savings accounts and a rise in loan demand notwithstanding the lack of true savings motivation. as a result, from sar 34.77 billion in september 2019 to sar 25.07 billion in september 2020, saudi arabia's banking industry's aggregate income decreased by 28%. by the conclusion of the first quarter of 2020, major arab stock markets had suffered a 23% average loss due to the collapse in oil prices and the covid-19 epidemic. the covid-19 epidemic and the drop in oil prices have devastated the stock market in arab nations, bringing financial market performance below that of the 2008-2009 crash, particularly in oil-dependent economies. the gcc countries have suffered their worst capital market losses in decades, with the united arab emirates bearing the brunt of the burden. non-gcc nations like egypt, morocco, and tunisia are also in a dangerous position. interruptions to vital economic activity, such as a drop in investment, tourism, and remittance inflows, as well as limited future development expectations, have resulted in an equally harsh stock market shock in these countries. 5 the efforts of the global central bank many global central banks have reduced cash interest rates to maintain aggregate demand, including the federal reserve board of the united states and the central bank of canada, which reduced the cash exchange rate by half a percentage point on march 3, 2020, and the bank of american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 72 www.americanjournal.org england in response to the virus's growing risk of money. in the same spirit, the central bank of canada announced a 0.5 percentage point cash rate drop to strengthen canada's economic immunity to cov just one day after the federal reserve of the united states lowered its interest rate. in addition, the people's bank of china announced a stimulus package for commercial banks by 5.0 to 1 percentage points, allowing the equivalent of $79 billion to stimulate the national economy. while the majority of global central banks have announced interest rate cuts, the ecb has been hesitant to respond to the cov outbreak with the same approach as the federal reserve, keeping interest rates unchanged at negative 0.5 per cent while the buyback rate has reached zero by relying on quantitative easing while keeping interest rates unchanged by pumping money through buy-back expansion. government bonds and the purchase of €120 billion in private sector bonds by the end of 2020 have increased european banks' liquidity. furthermore, the ecb has extended a package of loan facilities to european banks while encouraging smes to borrow at interest-low rates. on march 18, 2020, the bank additionally strengthened a credit facility in response to the corona virus by giving 750 billion euros through an emergency financing program set up for this reason “programme purchase emergency pandemic” (pepp) (european central bank, 2020). later, the us federal reserve noted the need to strengthen its response to the virus by lowering interest rates by half a percentage point and launching a $700 billion quantitative easing program that included the purchase of $500 billion in us treasury bonds as well as securities as collateral for mortgages worth $200 billion. (federal reserve system 2020). 6 banking and monetary sector the mechanisms for transferring monetary policy to the real economy are disclosed when the central bank publishes its quantitative monetary policy indicators (interest rates, domestic credit, and asset prices) are launched, this has an effect on the growth of the economy and the rate of inflation. in this regard, in reaction to virus corona, the majority of governments throughout the globe have utilized monetary policy instruments, others have used the legal monetary reserve ratio to increase merchant banks' capacity to make cash awards, while some have employed interest rates and the management of open market operations. as a result, the majority of concentration banks and arab monetary institutions cut interest rates at the same time, in similar amounts, in march 2020. this helped to increase liquidity levels, which had been negatively impacted in 2019 by the slowing of economic activity in several arab countries. in contrast, arab countries have implemented a monetary strategy of saving to boost domestic demand in the economy and the liquidity of the banking system, encouraging merchant banks to provide funding for smalland medium-sized health care projects, as well as companies participating in industries impacted by the virus corona collapse, like the services sector. central banks and arab monetary organizations have also moved ahead ،supplied merchant banks with a package of incentives to lessen the impact of virus propagation on their clients, which will be detailed in the arab nations study's next part. the influence of incentives on the financial safety indicators of the banking sector, as they relate to the quality of capital, the quality of assets, and profitability, as well as the scale of the hiccup in bank finance, must be considered, american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 73 www.americanjournal.org as shown by banks and varies between banks with a sovereign surplus and banks with a sovereign deficit. in comparison to those that had a deficit before to the coronavirus pandemic, large banks with a sovereign surplus are required to give financial concessions and rewards to their consumers. for example, large banks (capital, asset quality, and liquidity) might give their consumers a period to repay easy-to-pay loan repayments. longer periods range from three to six months, but small and medium-sized banks will only pay out loan instalments to their consumers for a month to three months. the percentage increase in local liquidity in arab nations 7 stimulus packages in arab countries coronavirus has been successfully combated by arab central banks and financial organizations. in response to the corona crisis, saudi arabia adopted a $34.4 billion (16.5 percent of gdp) stimulus package in the first quarter of 2020 to support credit, liquidity, the government said that it will cover 60% of saudi private sector employees' salaries, totalling 9 billion saudi riyals, due to a lack of cash and the private sector. in mid-april 2020, a package of further initiatives costing sar 97.5 billion1, or $26 billion, was approved, bringing the kingdom's total packages to $4.60 billion, when the uae announced a total stimulus package worth $76 billion (aed 238 billion, equivalent to about 19 per cent of gdp). 4.23 billion dw 75 billion qatari riyals (equal to around 12% of gdp), and the kuwaiti government has introduced legislation in parliament allowing for the employment of kd 500 million (equivalent to 6.1 billion usd) (4.1 per cent of gdp), kuwait has also initiated an initiative with commercial banks to establish a financing fund of kd 10 million to address the issues of the co-19 epidemic and reduce its spread, as well as support the kuwaiti government's emergency and urgent finance needs in the face of the crisis. to combat the consequences of the virus on bahrain's economy, the government issued incentive packages totalling bd 560 million, or 5.1 billion dollars. the measures, which span three months, include the payment of salaries to bahraini citizens working in the private sector, the exclusion of stores and small and mediumsized businesses from government levies, and the bahraini government's impending introduction of a $4.11 billion ($3.4 billion) package to help the economy are all high priorities. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 74 www.americanjournal.org egypt has also announced a series of actions worth egp 100 billion, including the postponement of credit benefits for 6 months and the provision of credit facilities in this regard, as well as the prohibition of any assistance with temporary work as a result of a virus or penalties for late payments, including corona. on april 3, 2020, the egyptian government received $9.7 million from the the world bank will support the nation's efforts to combat the corona pandemic. the funds will be used to support egypt's healthcare system development initiative, which aims to improve healthcare quality while also increasing demand. (world bank, 2020). 8 efforts of arab monetary institutions and central banks as a result of the federal reserve's two rounds of rate reduction, the majority of central banks and arab financial institutions have embraced growing financial strategies by lowering profit rates. regarding this, the saudi arabia monetary agency (sama) announced a reduction of 75 basis points in the interest rate on purchase agreements (saudi arabian monetary agency, 2020), as well as a 75 basis point drop in the interest rate from 1.25 per cent to 0.50 per cent. in the face of the corona virus outbreak, sama sought financial stability. additionally, the central bank of the united arab emirates has made changes to its various cash profit rates (united arab emirates central bank, 2020). even though his deposit certificates are the primary channel via which changes in the interest rates of the banking system's monetary policy are conveyed, it reduces the interest rate on his one-week deposit certificates by around 0.75 percentage points. it additionally, it reduced the coalition loan interest rate by around 50 basis points. the central bank of the united arab emirates' board of directors has suggested lowering the required reserve for on-demand deposits for all banks by 50%, from 14% to 7%. the central bank of the united arab emirates provided assistance of 256 billion dirhams ($69.2 billion). a cash flow of up to aed 50 billion from central bank reserves would be used to offer loans and advances to banks operating in the country at no cost, backed by a guarantee. it is free of bank additional capital in addition to 50 billion dirhams. banks can use the bank's decision to lower reserve requirements for all banks' on-demand deposits from 14% to 7% to help them manage liquidity and lend to the uae economy. the central bank will continue to keep an eye on the economic and financial situation and will be ready to support if it becomes essential to lessen the effects of the crisis (arab monetary fund, 2020) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 75 www.americanjournal.org key interest rates were changed in march 200 by international banks and arab monetary agencies. 9 conclusion the covid-19 crisis puts banks management approaches to the test, pushing managers to master new skills and develop courageous team members. banks handled the mass move to remote working exceptionally effectively during this time, while maintaining a presence in offices for important functions. practically speaking, banks had a number of challenges, one of which was deferring lending rates for business clients in spite of numerous demands to do so. the banking sector's efforts to become digital have intensified, testing its durability and adaptability. banks, according to the data, try to match customer expectations by launching new products and services. furthermore, while no one can foretell the future, it is unquestionably necessary for organizations to modernize their it infrastructure. apart from covid-19's immediate and long-term implications, the financial sector has effectively completed the lockdown period. the state of the economy as a whole is significantly impacted by the banking industry. infrastructure, education, technology, quality of life, and innovation are all improved by banks. the growth process's stability and long-term viability are critical. the only constant in our modern world is the velocity of change, and because banks play such a significant role in economic development, they have always been visible to the general public and will do so in the future. recommendations abecause banks are the backbone of contemporary economies, bank restructuring policies may have significant political and economic repercussionsthis is especially important at this time when covid-19 is attacking financial institutions and so many economies are collapsing. bbank restructuring is one of the most challenging challenges that policymakers face. on the basis of limited information, decisions may be made quickly and occasionally in the midst of an emergency. carab central banks should strive to provide appropriate liquidity to the financial sector at all costs during the relief and recovery periods. this approach will help banks to remain viable while also facilitating corporate financing, particularly to small and medium-sized businesses, to avert major bankruptcies. because of the lengthy uncertainty surrounding the covid-19 epidemic, nations with flexible exchange rate regimes must accommodate low long-term interest rates. it is also critical that central banks' facilitation of extra liquidity outweighs substantial credit withdrawals by major enterprises and investors as a result of the widespread pandemic. references 1. arab monetary fund (2020), arab economic outlook report, april 2020 2. barua, b., & barua, s. (2021). covid-19 implications for banks: evidence from an emerging economy. sn business & economics, 1(1), 1-28. https://doi.org/10.1007/s4354602000013-w american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 76 www.americanjournal.org 3. berger, a. & humphrey, d. (19rey. the efficiency of financial institutions: international survey and direction for future research. european journal of operational research.175–212. 4. bourke, p. (1989). concentration and other determinants of bank profitability in europe, north america, and australia. journal of banking & finance, 13(1), 65-79 5. disemadi, h. s., & shaleh, a. i. (2020). banking credit restructuring policy amid covid-19 pandemic in indonesia. jurnal inovasi ekonomi, 5(02), 63-70. https://doi.org/10.22219/jiko.v5i3.11790 6. european central bank (2020), “our response to the coronavirus emergency”. available at: https://www.ecb.europa.eu/home/html/index.en.html 7. federal reserve system (2020). available at: https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm 8. economic repercussions of the new corona virus on arab countries may 8, 2020 9. claessens, s., klingebiel, d., & laeven, l. (2005). chris resolution, policies, and institutions: empirical evidence. in systemic financial distress: containment and resolution. cambridge: cambridge university press 10. european central bank. the euro area bank lending survey. fourth quarter of 2020; european central bank: frankfurt, germany, 2020. available online: https://www.ecb.europa.eu/stats/ecb_surveys/bank_lending_survey/html/ecb.blssurvey2 020q4~{}e8 9c77d212.en.html (accessed on 15 august 2021) 11. european central bank. financial stability review may 2021; european central bank: frankfurt, germany, 2021. available online: https://www.ecb.europa.eu/pub/pdf/fsr/ecb.fsr202105~{}757f727fe4.en.pdf (accessed on 15 august 2021). 12. imf (2020), https://www.imf.org/en/topics/imf-and-covid19/policy-responses-to-covid19 13. international monetary fund. global financial stability report 2020; international monetary fund: washington, dc, usa, 2020. available online: https://www.imf.org/en/publications/gfsr/issues/2020/10/13/global-financial-stabilityreport-october2020 (accessed on 15 august 2021) 14. kpmg (2020b). a catalyst for change for bank branches https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bankbranches.html 15. kpmg (2020b). a catalyst for change for bank branches https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bankbranches.html 16. molyneux, p., and thornton, j. (1992). determinants of european bank profitability: a note. journal of banking & finance, 16(6), 1173-1178. 17. pwc (2020b). how retail banks can keep the lights on during the covid-19 crisisand recalibrate for the future. https://www.pwc.com/us/en/library/covid19/coronavirusimpacts-retail-banking.html#content-free-1-afa8 18. reinhart, c. m., & rogoff, k. s. (2009). this time is different: eight centuries of financial folly. princeton university press. https://doi.org/10.22219/jiko.v5i3.11790 https://www.ecb.europa.eu/home/html/index.en.html https://www.federalreserve.gov/newsevents/pressreleases/monetary20200323b.htm https://www.ecb.europa.eu/pub/pdf/fsr/ecb.fsr202105~%7b%7d757f727fe4.en.pdf https://www.imf.org/en/topics/imf-and-covid19/policy-responses-to-covid-19 https://www.imf.org/en/topics/imf-and-covid19/policy-responses-to-covid-19 https://www.imf.org/en/publications/gfsr/issues/2020/10/13/global-financial-stability-report-october2020 https://www.imf.org/en/publications/gfsr/issues/2020/10/13/global-financial-stability-report-october2020 https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bank-branches.html https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bank-branches.html https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bank-branches.html https://home.kpmg/xx/en/blogs/home/posts/2020/04/a-catalyst-for-changefor-bank-branches.html https://www.pwc.com/us/en/library/covid19/coronavirus-impacts-retail-banking.html#content-free-1-afa8 https://www.pwc.com/us/en/library/covid19/coronavirus-impacts-retail-banking.html#content-free-1-afa8 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 77 www.americanjournal.org 19. saudi arabian monetary agency (2020)," the bank's press release on the repercussions of the corona virus, and the policies it has taken in this regard. available at: http://www.sama.gov.sa/ar-sa/news/pages/allnews.aspx 20. united arab emirates central bank (2020)," the bank's press release on the repercussions of the corona virus, and the policies it has taken in this regard. available at: https://centralbank.ae/ar/about-us 21. world bank (2020), “egypt: world bank provides us$7.9 million in support of coronavirus emergency response”, april 2020. available at: https://www.worldbank.org/en/news/press-release/2020/04/02/egyptworld-bankprovides-us79-million-in-support-of-coronavirus-covid-19-emergency-response http://www.sama.gov.sa/ar-sa/news/pages/allnews.aspx https://centralbank.ae/ar/about-us https://www.worldbank.org/en/news/press-release/2020/04/02/egyptworld-bank-provides-us79-million-in-support-of-coronavirus-covid-19-emergency-response https://www.worldbank.org/en/news/press-release/2020/04/02/egyptworld-bank-provides-us79-million-in-support-of-coronavirus-covid-19-emergency-response american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 44 www.americanjournal.org the role of intellectual capital in achieving competitive advantage (an exploratory study of the opinions of a sample of workers in the maysan oil company) husham mayea fazaa almusaedi iraq / univversity of missan college of administration & economics jinalmaliky@gmail.com a b s t r a c t k e y w o r d s the study sought to determine the impact of intellectual capital in achieving competitive advantage (a survey of the opinions of workers in the maysan oil company (a public company), it is known that each company has intellectual capital that contains three basic dimensions (human capital, customer capital, capital structural) and since the competitive advantage is framed in the company's ability to achieve its goals, this depends on its ability to produce products that meet the requirements of customers, and given the limited studies that dealt with the relationship of correlation and impact on intellectual capital and the achievement of competitive advantage in the company (within the limits of the researcher's knowledge), the researcher sought to contain his current study of these two variables within a comprehensive framework in an attempt to study the relationship of correlation and effect between them in general, the study tries to answer the following questions: 1is there a clear perception among the employees of the researched company about the two issues of intellectual capital and competitive advantage? 2-is there an increase in the awareness of the employees in the company under study of the concept of intellectual capital and competitive advantage? the study reached a number of conclusions, the most important of which are: 1-there is a significant correlation between intellectual capital and competitive advantage in the company under study 2-there is a significant effect between intellectual capital and competitive advantage at the level of the company under study. intellectual capital, maysan oil company, competitive advantage introduction this study represents an attempt to measure the impact of intellectual capital in achieving competitive advantage (a prospective study of the opinions of workers in the maysan oil company (a public company), as this topic acquires great importance for what intellectual capital represents because it is american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 45 www.americanjournal.org one of the most important functional elements in the company, which translates into goals and plans and the company’s policies in the field of efficiency, in addition to considering it as one of the basic foundations for events and operations.in addition to that, the company seeks a distinguished level of performance that pushes it to search for the best methods and means to enhance its competitiveness to ensure its survival in the competition.and due to the lack of local studies that are concerned with intellectual capital and advantage competitiveness. in his study, the researcher dealt with a comprehensive framework based on the authors’ proposals in the fields of intellectual capital management and competitive advantage. in order to integrate with the foregoing, a hypothetical scheme was designed to determine the nature of the relationship between the independent variable (rass intellectual money), approved (competitive advantage), and a set of main hypotheses were derived, where the data obtained were tested statistically on the general oil company in maysan, and then the hypotheses of the study were tested, and its results, conclusions, and appropriate proposals to address weaknesses and imbalances were determined, and others were left to be addressed with studies futurism suggested in this area. research problem: the oil sector in the maysan oil company is witnessing unilateral competition among other competing companies with the possibility of a third operator or more entering the market, which will make the competition intense and will make success in the oil sector for the company that achieves a competitive advantage and works to maintain it by providing the requirements of both human and structural capital. and social, and through the above, we can formulate the problem of the study with the importance of focusing by the company on intellectual capital to achieve the competitive advantage. how can intellectual capital contribute to achieving the competitive advantage of the oil company in maysan? research importance: intellectual capital is of great importance in creating value for the organization, improving its creative capabilities, improving its reputation, and attracting customers. many studies have shown that raising productivity comes from the use of knowledge, and that intellectual capital is the main driver for achieving competitive advantage. research assumes: the research is based on two main hypotheses: the first main hypothesis: there is a statistically significant relationship between intellectual capital and achieving competitive advantage in the researched company. the second main hypothesis: there is a significant effect of intellectual capital in achieving the competitive advantage in the researched company. search form: 1-the independent variable: is intellectual capital and is represented by ( human capital, structural capital, customer capital) 2-the dependent variable: competitive advantage and includes the following dimensions: quality, efficiency, creativity, and responsiveness. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 46 www.americanjournal.org data collection methods: previous references and studies related to the subject were reviewed and we tried to benefit from them in building the questionnaire and drafting its paragraphs. a-the questionnaire was designed in its initial form and consisted of three dimensions. b-the first part: it included personal and occupational data of the study sample (sex, age, qualification scientific, job title, years of experience). part two: it includes data on intellectual capital and its three basic dimensions as follows 1-human capital 2-customer capital statistical analysis methods: first: after the data was tabulated and entered into the computer, the statistical package for social sciences (spss) program was used, and the following statistical methods were relied upon to analyze the data. 1correlation coefficient: the stability that the scale measures what was developed to confirm the structural validity and validity of the internal consistency of its measurement, as the pearson correlation coefficient was used, as it was used to determine the relationship and correlation between the variables of the study. 2-frequencies: to find out the frequency of selecting each alternative of the questionnaire questions second percentages: to find out the percentage of choosing each of the alternatives to the questionnaire. 1-arithmetic mean: to obtain an average of the answers of the study sample to the questionnaire questions; that is, calculating the value that members of the study community give to each phrase or group of phrases 2-standard deviation f: which enables knowing the extent of the absolute dispersion between its arithmetic mean. 3-choose the average of the expressions for one sample t-test (positive negative – neutral), test the means of two independent samples f (for independent samples). the first topic: intellectual capital: first: the concept of intellectual capital: the concept of intellectual capital is one of the contemporary administrative concepts, as it represents the most important resource of industrial and service associations alike. (al-jalili, 2006: 3) starvic defined intellectual capital as the possession of knowledge and the application of experience and technical expertise in the organization, customer relations and professional skills. (al-janabi, 2010, 104) intellectual capital is defined as increasing the capacity of the society to adapt through the development of its products and production techniques and the reduction of their costs and innovative new trends through the development of creativity, learning and the growing investment in people in education and training. intellectual capital is a group of knowledge, information, skills and experiences of economic value that can be applied to achieve growth. and economic development. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 47 www.americanjournal.org second: the components of intellectual capital intellectual capital consists of a number of non-material components: (al-mutairi, 2007, 367) 1-human assets: which are knowledge, skills, creativity, and experience. human capital consists of a combination of skills, abilities and knowledge, in addition to previous experience, or acquired through work 2-intellectual assets: they are information, written notes, instructions and publications. intellectual assets are formed as soon as information, knowledge, ideas and data are transmitted from human assets, to be recorded in writing, and become clearly defined and known, and then the organization deals with these intellectual assets, instead of dealing with individuals and examples intellectual assets: plans, engineering designs, and computer programs. 3-intellectual property: it is the total rights that protect the use of ideas and information that have commercial value. intellectual property gives its owner exclusive rights as a result of the knowledge and information that he created and that others cannot use without permission. leading organizations in the industry work to own more intellectual property, to achieve an advantage competitiveness that enables it to face intense competition in the markets, and organizations try to develop a portfolio of intellectual property in it, and market these properties based on prior planning for how to manage and exploit them. 4-structural assets: these include culture, organizational models, processes, procedures and distribution channels. 5-relationship capital: it reflects the nature of the relationships that link the organization with its customers, suppliers and competitors, or any other party that helps in developing and transforming the idea into a product or service. (hassan, 2002, 367) third: the importance of intellectual capital the intellectual capital of any institution is the value that distinguishes it from similar institutions, and gives it the lead in the event of its superiority over others. the criterion for competition today is knowledge, information and skills, and since we live in the era of technological progress and the era of knowledge. (talib and al-abadi, 2006, 126) 1-intellectual capital is the future of organizations seeking long-term success, as it represents tangibly the possession of expertise, experience, techniques and individual competencies in the organization. 2-intellectual capital is the main weapon of the organization in today's world, because intellectual assets represent the strong force that guarantees the survival of the organization. 3-the presence of intellectual capital in the organization is a competitive advantage, as a result of what these capitals provide in useful knowledge and the ability of the organization to invest that knowledge to achieve the competitive advantage. 4-the knowledge presented in the intellectual capital is unique and unavailable and provides intellectual contributions that enable the organization to increase its production compared to its counterparts. 5-intellectual capital is an essential source of competitive advantage. organizations compete on the basis of knowledge and advantage. it is responsible for the process of converting a distinguished resource and knowledge into a contribution to information. thus, intellectual capital has economic value in the market. fourth: intellectual capital objectives american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 48 www.americanjournal.org since intellectual capital represents a group of elements available in the organization that has extensive knowledge that makes it able to bring it to globalization through a group of competitive assets that carry out the process of ethical and strategic development based on innovation and renewal, the researcher believes that the objectives of intellectual capital are represented in that it represents one of the factors production that supports the competitive position of business organizations and enables them to continue their activities and helps them to acquire knowledge and renew their balance of knowledge, and get rid of stereotypes and traditional concepts prevailing in the work environment. it also provides creative and innovative capabilities that contribute to solving problems and developing performance methods in business organizations. (al-saeed, 2008, p. 37) this makes intellectual capital (knowledge) growing importance for its vital and pivotal role in creating sustainable competitive advantages for business organizations. in addition to this, interest in studying the concept of intellectual capital, its elements, and methods of measuring and reporting on it helps the organization's management focus its attention on its development and protection, and supports the goal of the organization increasing the value of its shares and helping to increase the efficiency of capital markets by providing investors with information that enables them to make better investment decisions, in addition to that failure to understand the value creation process and neglect of intellectual capital may result in losses at the level of the market organization. intellectual capital may lead to an insufficient allocation of the organization's resources, which results in a negative outcome represented in its inability to estimate its capabilities and future turnover. on the market level, failure in the value creation process may lead to abnormal or wrong behavior of the market. if the organization cannot obtain inappropriate and untruthful information through the market and its official channels, this leads to improper allocation of resources at the national level (nihal al-jundi, 2003, 125). as seen, the expansion of the strategic plans of business organizations has become an inevitable necessity to absorb their intellectual capital. (kaplan and norton, 2004, 147) in addition to its physical capital, investment in intellectual capital has also become an effective role in the existence of continuity of business organizations in the practice of their activities, and intellectual capital has become the real capital that can be relied upon in creating added value and achieving competitive advantages for these organizations. the second topic: competitive advantage first: the competitive advantage the concept of competitive advantage emerged as a result of the great competition between institutions and the emergence of globalization (porter) who was the first to refer to this concept of competitive advantage. the goal of the variable strategy is used within the strategy. design a template. (zoubi, 2003, 45) the competitive advantage practically aims at the customer in order for the customer to acquire the good or service. as for the british definition of competitiveness, it states that it is: the ability to produce goods and services with good quality, at the right price, and at the right time, and this means meeting the needs of consumers more efficiently than the other establishment. (william, 2007, 4) believes that the competitive advantage is a characteristic that distinguishes the company from other companies by having resources and facilitating factors, which gives it an internal dynamic force that establishes a different attitude towards the beneficiaries, which is reflected in the goods and services it offers of unique value to its target customers. (adnan, 12, 2001) american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 49 www.americanjournal.org the competitive advantage is represented by the company’s distinction over the competitive advantage as any advantage achieved by the company that is higher than what competitors offer to customers and has value. (mohsen, and al-najjar, 2004, 52) that competitive advantage aims to build a system that has a unique or distinctive advantage that surpasses competitors through customer value, in an efficient and sustainable manner that can be maintained continuously and presented or presented better than others. (soliman, 2004, 74) believes that the competitive advantage is achieved when the company is able to carry out its activities at a lower cost or with better efficiency than competitors through the good use of resources, or to use its ingenuity and experience in carrying out its activities. (mustafa, 2006, 416) second: the characteristics and requirements of competitive advantage competitive advantage must be characterized by the characteristics of the most important. (al-ghalbi 2009, 309) 1-to be continuous and sustainable in the sense that the institution achieves the first in the long term and not only in the short term. 2-and that the use of these competitive advantages is commensurate with the goals and results that the organization wants to achieve in the short and long term, and the internal resources of the organization on the other hand. 3-competitive advantages are relative compared to competitors or compared in different periods of time, and this characteristic makes understanding the advantages in an absolute framework difficult to achieve. 4-it must be renewable according to the data of the external environment on the one hand and capabilities, and it must be flexible in the sense that competitive advantages can be easily replaced by others. third: the factors affecting the competitive advantage among the influencing factors affecting competitive advantage are the following. (proby, 2005, 166) 1-creative capabilities: the organization is forced to make changes in the characteristics and specifications of its products, and this requires a market study to know the current and expected demand, the technological expertise of the organization, creativity. 2-productive capabilities: it means two important elements: quality, which is the ability of the product to meet its needs and desires, and requires: creativity, customer satisfaction, and productivity is a measure of the organization’s efficiency in using its resources, and it represents the ratio between outputs and inputs, and the organization must raise productivity, because it is a basic criterion to measure the efficiency of the organization compared to its competitors. 3-marketing capabilities: the marketing function is considered one of the pillars of its competitiveness, which is based on: marketing research, market study, and consumer behavior analysis. the third topic: the applied side first: description of the research sample (50 )questionnaires were distributed, which represent the number of the sample among the employees of the company, “the study community.” (47) questionnaires were retrieved, which is equivalent to (94%) from the original community, and with the aim of describing the study sample, the researcher american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 50 www.americanjournal.org proposed to detail it in table (2), where it is clear from this table that most of the respondents are among the people who are most familiar with the two variables of the study). table (2) also shows that most of the respondents are diploma holders, as their percentage was (43%), which is the highest percentage among the other percentages, and as table (2) shows the number of years of service, as the category (6-10) obtained the highest percentage (38%), and this is a good indication that most of them have practical and professional experiences, and from the aforementioned information it is clear that this sample may be the appropriate sample to answer the questions of the scale prepared for this study. table (4) of regression analysis indicates that there is a significant effect of intellectual capital as an independent variable on competitive advantage as a dependent variable. this is according to the calculated (f) value of (15.056), which is greater than its tabular value of (4.042), and is significant at the level of (0.05) with two degrees of freedom (1, 45), and as long as the calculated (t) values are significant for the independent variable, amounting to (2.415), which is greater from its tabular value (1.675), this reflects the significance of the model, and it is clear that the coefficient of determination (r2), which has a value of (0.251), indicates that the ability of the independent variable to explain (25%) of the differences that occurred in the dependent dimension and that (75%) returns to variables not included in the model. thus, the second main hypothesis is accepted. table no. (1) response rate distributed retrieved excluded not retrieved valid retrieval 50 48 1 2 47 %94 table (2) distribution of the study sample sex male feminine repetition the ratio % repetition the ratio % 38 80.9 9 19.1 age categories 30 and under 31-40 41-50 51 and over repetition the ratio % repetition the ratio % repetition the ratio % repetition the ratio % 7 14.9 25 53.2 10 21.3 5 10.6 educational attainment ph.d master's higher diploma bachelor's repetition the ratio % repetition repetition % النسبة repetition the ratio % 2 4.3 3 6 12.6 20 42.6 technical diploma prep medium primary repetition the ratio % repetition repetition the ratio % repetition the ratio % 10 21.3 3 6.4 1 2.1 2 4.3 the number of years of service in the company less than 5 6:10 6: 11 over 16 repetition the ratio % repetition the ratio % repetition the ratio % repetition the ratio % 5 10.6 18 38.3 11 23.4 13 27.7 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 51 www.americanjournal.org 1-testing the correlations between the variables of the study: through this research, the first main hypothesis was tested, which states that (there is a significant correlation between intellectual capital and competitive advantage in the researched company). table (2) was prepared, which indicates the existence of a significant correlation between intellectual capital and competitive advantage, as the total index reached (0.870*), and this proves the validity of the first main hypothesis table (2) relationships between intellectual capital and competitive advantage intellectual capital independent variable dependent variable *0.501 competitive advantage *: p ≤ 0.05 n =47 2-testing the effect relationships between the variables of the study the content of this relationship represents a test of the second main hypothesis of the study, which indicates that "there is a significant effect of intellectual capital on the competitive advantage in the researched company. table (3) relationship of the influence of intellectual capital on competitive advantage. r2 t f intellectual capital independent variable dependent variable tabular calculated tabul ar calculate d β0 β1 0.251 1.675 *2.415 4.042 *15.056 0.584 0.501 competitive advantage d.f : (1,45) *: p ≤ 0.05 n = 47 conclusions and recommendations: conclusions: through the study that dealt with the research, we reached the following results: 1-intellectual capital is the main pillar for the success of organizations 2-the real capital that organizations possess is not physical capital, but intellectual capital, which is represented primarily in knowledge that can be converted into added value through successful investment in human energies and competencies. 3-the difference between the nominal value of the organization and its book value is represented in the intellectual capital that it possesses, which is the source of competitive superiority and competitive advantage for it. american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 52 www.americanjournal.org 4-human capital, represented by the skills and competencies available to individuals, contributes to achieving the competitive advantage of the organization, and this confirms the validity of the first hypothesis. 5-customer capital contributes to achieving the competitive advantage of the organization. 6-the represented structural capital contributes to achieving the competitive advantage of the organization. 7-there is a correlation between intellectual capital and competitive advantage in the company under study. 8-there is a significant impact relationship between human capital and the competitive advantage in the company under study. recommendations: through the general results that have been reached, the student presents some recommendations that can contribute to the development and development of intellectual capital in the company under study in a way that leads to the development and sustainability of the competitive advantage as follows: 1-the need for organizations to realize the importance of realizing what intellectual capital constitutes for the purpose of caring for and developing this resource, and exploiting it to achieve sustainable competitive advantages. 2-increasing interest in intellectual capital and managing it as it should be managed because it is an important source for achieving competitive advantage. 3-the need to deal with intellectual capital as the most important strategic resource that the company possesses, and to maintain it constantly because it is the effective element in the success of the company, especially in light of the tremendous technological development that the business environment knows. 4-giving great importance to the components of intellectual capital, including customer capital through improving relations with customers, human capital through training and continuing education, and structural capital through modernizing organizational structures and competencies. 5-the need to focus on the process of creating intellectual capital by giving the opportunity to individuals in order to allow them to express their opinions and suggestions on developing and improving work procedures, creating a creative environment. 6-the need to give great importance to meeting the needs of customers and responding quickly to them. 7-the company must strengthen the element of strategic alliances and rely on them and benefit from their experience in their field of work. sources: 1-al-jalili, miqdad ahmed, al-rudaini, taha ahmed hussein (2006), the use of accounting tools, tanmiat al-rafidain journal. 2-al-janabi, amira hatif (2010). the impact of customer knowledge management in achieving competitive superiority, a comparative study, between a sample of iraqi banks, an unpublished master's thesis, university of kufa, the iraqi republic. 3-al-mutairi, muhya bin khalaf eid (2007). intellectual capital management and development in university education in the light of contemporary transformations, (conceiving a proposed american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 53 www.americanjournal.org supplementary requirement for obtaining a doctorate degree in management and planning, umm alqura university, saudi arabia. 4-hussein, nahida ismail (2002), intellectual capital and its impact on employee performance management, an analytical study of the opinions of a sample of heads of scientific departments at the university of mosul, iraq. 5-talib kamel and dr. mohammed al-abbadi, (2006), studying intellectual capital strategies with the competitive performance of the institution, university of sharjah journal for humanities and social sciences, volume (7) issue (2). 6-al-saeed, abdel hakim ,(2008), human resources management, challenges and experiences, applications, scientific book house for publishing and distribution, cairo. 7-nahla qassem al-jundi (2003), accounting treatments for the problems of measurement and disclosure of intellectual capital, master’s thesis in accounting, college of administration and economics, university of mosul. 8-kaplan. & norton. j.p, management information systems managing the digital form, pearseon hall, 2004. 9-al-zoubi, hassan ali (2003). “the impact of strategic information systems in achieving competitive excellence”: an applied study in jordanian banks listed on the amman stock exchange, the first scientific conference “business economics in a changing world”, applied sciences national university, amman. 10-adnan, ahmed karaji (2001) “the impact of training on achieving competitive advantage”, analytical study of opinions of a sample of directors of governmental hospitals in baghdad, master’s thesis in management. 11-mohsen, taher, and drees, wael (2004). “strategic management: an integrated systematic perspective,” wael publishing house, 2nd edition, amman, jordan. 12-salman, ghassan qassem (2004). “contemporary techniques and systems in operations management”, 1st edition, dar al-tharaa for publishing and 13-mustafa, ihsan muhammad nazir (2006), saudi hospital administration, general administration of research 14-al-ghalbi, taher, and drees, wael (2009). “strategic management: an integrated systematic perspective”, wael publishing house, 2nd edition, amman, jordan. 15-proby, mustafa (2005). “intellectual capital and its role in achieving the competitive advantage of the palestinian cellular communications company”, jawwal, the islamic university, gaza. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 159 www.americanjournal.org the role of diversification of banking services in the profitability of commercial banks: an analytical study in the iraqi credit bank and the international development bank a. p. dr. rahim shrad amer al-taie al-mustansiriya university / college of administration and economics baghdad, iraq dr_raheem_sh@uomustansiriyah.edu.iq researcher: ibrahim qais ibrahim al-qaisi al-mustansiriya university / college of administration and economics baghdad, iraq ibrahemkaesk@uomustansiriyah.edu.iq a b s t r a c t k e y w o r d s this study was prepared to demonstrate the role of diversification of banking services in the profitability of private iraqi commercial banks. international development), and the research tended to follow the inductive approach, the descriptive approach, and the analytical approach by studying the theoretical framework for diversifying banking services, indicators of profitability in commercial banks, the most important ratios measured, and analyzing the effects left by the diversification of banking services on the profitability of iraqi private commercial banks, the research sample, in order to strive to achieve the goals set by him and trying to reach them by conducting this type of research. the problem of the study was embodied in the role of diversifying banking services in the profitability of iraqi private commercial banks. the research also reached a set of conclusions, the most important of which are: the higher the level of diversification of banks in the services they provide to their customers, the higher the net profit and the rest of the profitability indicators, and this was evident in the study sample banks. also, the high levels of diversification in banking services require a large financial capacity, due to the high cost of producing new services, in addition to its ability to maintain its current business. the research also presented a set of recommendations, the most important of which are: the need for banks to raise the level of their diversification in banking services, because of this important role in the profitability of commercial banks, as diversification contributed to the entry of banks into some areas of new business and thus increase their ability to compete and improve profitability. diversification of banking services, the profitability of commercial banks. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 160 www.americanjournal.org introduction many of the current organizations in the world consider that they are moving towards expanding and improving their business environment. one of the reasons may be meeting the multiple needs of customers, which has a role in their profitability. therefore, the world of banking business has known a scientific shift from the dimensions and objectives of banks’ strategies in the last few decades, and this was a logical result of the new technology revolution in information and communications, the globalization of financial and banking markets, and the emergence of new types of banking services provided by commercial banks, and perhaps this is what led to banking institutions in particular finance, in general, tends to diversify the banking services it provides to its customers. this is why many organizations decide to follow the diversification strategy. increasing productivity and using factors of production effectively has always been crucial and important discussion topics for economists, so economists are generally divided into two groups: one proposing specialization, the other proposing diversification. therefore, the banks worked within the framework of the policy of bringing the service closer to the customer to diversify the various banking services that are provided to their customers, such as electronic technologies, and adapting to the digital economy that operates in an electronic environment. therefore, it has become a duty for these banks to go hand in hand with technological progress and acceleration in order to develop their performance. and its business and maintaining its ability in the global markets, the individual can carry out many banking operations and manage his account with ease thanks to the development and diversification of banking services provided by banks to their customers. the first section: research methodology first: the research problem in view of the competitive environment experienced by banks in iraq and their continuous efforts towards improving banking profitability and keeping pace with global developments in this field, this calls for research and study in the reality of keeping pace with private commercial banks in iraq with global banking developments that leave positive effects on banking profitability, and among these developments is the diversification of services banking. through the foregoing, the problem that can be answered through the study can be formulated in the following question: what is the role of diversifying banking services in the profitability of iraqi private commercial banks? second: the importance of research the banking sector is considered the lifeblood of the economy of any country, so the importance of this topic lies in understanding the role of diversifying banking services in the profitability of iraqi private commercial banks from studies that have significance in the iraqi economy, and that diversification in banking services and reviewing its banking and financial activities and effectiveness contributes to enriching the research library in addition to contributing to the provision of data and information that help iraqi banking institutions to achieve competitive advantages and satisfactory performance rates in the environmental environment of these banks. the importance of this research is highlighted by the following points: 1considering it as an academic attempt for intellectual and conceptual framing towards the cognitive aspects related to the role of diversifying banking services in the profitability of iraqi private commercial banks. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 161 www.americanjournal.org 2it focuses on one of the modern banking topics, which is the concept of (diversification of banking services), and the role of this concept in enhancing profitability. 3the possibility of benefiting from this study as a cognitive and applied guide, whether through the conceptual review, as well as the proposals and recommendations that came out of it for managers of iraqi commercial banks and for all the competent authorities in controlling the banking sector and for investors in the shares of those banks. third: the research hypothesis in order to achieve its objectives, the research stems from a basic hypothesis that "the diversification of banking services has a positive role in the profitability of iraqi private commercial banks." fourth: research objectives the main objective of the research is to reveal the role of diversification of banking services in the profitability of iraqi private commercial banks. fifth: research methodology the research approach is based on the problem presented, and in order to test the research hypothesis from its various aspects, obtain the results and give interpretations to them, the researcher followed the inductive approach, the descriptive approach, and the analytical approach by studying the independent variable (diversification of banking services) and its role in the dependent variable (profitability of commercial banks iraqi private), and analyze the effects left by the diversification of banking services on the profitability of iraqi private commercial banks, the research sample. sixth: research limits 1temporal limits: the time period for the research was determined by the period (2016-2021) by analyzing the financial data, based on the annual financial reports of the iraqi private commercial banks, as the annual financial reports were obtained directly from the research sample banks. 2spatial limits: the search was limited to two banks, namely (the iraqi credit bank and the international development bank), to conduct a study of the field side of the research, due to the availability of financial data and annual financial reports for the period (2016-2021) published by the research sample banks. seventh: financial methods and measures the research focused on the use of a set of indicators related to the subject of the study, and they were addressed in the theoretical framework in order to reach their results in the practical framework for the purpose of demonstrating the role of diversifying banking services in the profitability of commercial banks, and that the approved analysis indicators for the purposes of application will be presented briefly and as shown in the table following: table (1): indicators and percentages of profitability in commercial banks indicators ratios return on equity (roe) (net profit ÷ equity) x 100 return on deposits (rod) (net profit ÷ total deposits) x 100 return on assets (roa) (net profit ÷ total assets) x 100 return on funds available for employment (rof) net profit ÷ (equity + total deposits) × 100 the rate of change in any of the indicators above (the following ratio – the base ratio) ÷ the base ratio × 100 source: prepared by the researchers. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 162 www.americanjournal.org the second section: the theoretical framework the first requirement: the diversification of banking services first: defining banking services a group of personal skills, material requirements, norms, and legal rules that are presented and produced in a manner consistent with the customer’s directions to make rational banking decisions (al-bakri, 82, 2021). or it is the provision of banking operations (such as loans, payments, or deposit accounts) as a service that uses the secure and regulated infrastructure of an existing licensed bank with modern api-based platforms (ris, 2022: 121). from the previous definitions, it is clear to the research that banking services are a group of operations, benefits, and activities, which cannot be counted or determined, they change from one place to another, as well as from one activity to another, and it is not possible to keep them. it has a mutual relationship (providing a benefit to both parties) with a material return to the bank and achieving its future goals, as for the customer, satisfying his desires and financial needs. second: the importance of banking services the importance of banking services has increased in recent times more than it was in the past, for many reasons, the most important of which are: (al-zamil et al., 2012, 63) 1technological developments that have taken place in business organizations, such as electronic marketing and electronic commerce, and the increase in the use of technology, which has led to an increase in the need for banking services that support these activities. 2the growing diversification and complexity of the needs, motives, inclinations, and attitudes of the bank's customers. the customer has become smarter and wiser, and the banking services he needs are no longer simple and easy. 3increasing the cost involved in satisfying the customer's banking needs and desires, and achieving an appropriate profit from this activity. 4an increase in the percentage of workers in the banking services sector. third: defining diversification it is the growth of an organization by starting or acquiring a business outside of the organization's existing products and markets (armstrong et al, 2020: 669). or it is the process of distributing assets among several types of investments to reduce risks. in fact, diversification can reduce the risks associated with putting all eggs in one basket a common mistake made by investors. to avoid this mistake, many financial planners suggest that thinking about the investment program as a four-tiered pyramid, this approach to investing can provide financial growth and protection, regardless of the investor’s age, marital status, income, or level of financial sophistication (kapoor et al, 2018: 344). or it is entering new markets or acquiring other organizations, and diversification is considered a dangerous strategy, in the event that these new endeavors are not compatible with the mission of the organization, and business history is full of stories of organizations that explored new opportunities that were outside their mission and core values. an organization may follow a diversification strategy when it has many internal strengths and is exposed to many external threats (ferrell et al, 2022: 103). through the previous definitions, the research shows that diversification: it is an expansion process at different levels to achieve the goals of growth, which ultimately leads to improving the competitive position of banks by increasing and maximizing the volume and results of its business, through its reliance on the distinguished capabilities and capabilities that enable it to pursue this diversification, american journal of business management, economics and banking volume 10 march, 2023 p a g e | 163 www.americanjournal.org in addition, diversification contributes to reducing risks and distributing them across a number of asset classes. it is noted that all previous definitions of diversification share the idea of expanding the activity of banks, through: 1gaining new market shares. 2providing new services or products in addition to the existing ones. thus, the adoption of diversification is considered mainly in the case of working in an inflexible market, meaning in those circumstances that do not provide the organization with good opportunities to develop and develop profits within the organization’s current conditions, either because of competition, which occupies a strong share or because this market is constantly declining and declining, so diversification comes as a suitable solution to enter new fields and activities. the second requirement: the profitability of commercial banks first: the definition of profitability the concept of profitability occupies an important place in various businesses, as it is the primary goal pursued by financial companies, as through it work efficiency is measured, and profitability is the reason for the existence of organizations that work for profit, and the most prominent of these organizations are banks (caliskan & lecuna, 2020: 162). therefore, it is defined as the basic measure that reflects the overall success of the bank, which consists of a set of different ratios that express the bank's ability to achieve profits, in which shareholders, management, depositors, and investors are interested. (khalaf, 2021: 56). or it is the indicator to measure the bank’s ability to achieve an appropriate return on the money invested in its activities, and this indicator shows the actual results of the competitive position of shareholders and customers (hassoun and khalaf, 2022: 301). based on the foregoing, it can be said that the profitability of commercial banks is (the ability of the bank to achieve profits through the optimal investment of the bank’s resources, in a manner that achieves a return commensurate with the size of the bank’s resources in a certain period of time, and profitability is expressed in percentages that represent the rate of return on investment in a specific resource of the bank's resources). second: indicators for measuring profitability in commercial banks there are many indicators of measuring profitability in commercial banks. we will discuss four of the most important of these indicators, which will help us reach the results and analyze them in the practical aspect of this research: the rate of return on assets (roa) the rate of return on assets is the most used indicator for measuring financial performance in banks, which shows the ability of bank management to achieve net profits in terms of investing assets in loans and investments, which is defined as net income after interest and taxes to total assets (do et al, 2020: 375). this indicator is calculated by measuring net profit after tax on total assets, which expresses the bank's ability to generate profits by investing in the assets available to the bank, and is calculated according to the following equation: (cao, 2022: 15) the average return on assets = (tax after net profit) / (assets total) x 100 2the rate of return on equity (roe) the measure of return on equity is an important indicator to show the ability of the bank’s management to achieve financial returns on shareholders’ investments, as it measures the number of returns that shareholders earn from investing their money in the bank, i. the bank, that is, the amount that the bank american journal of business management, economics and banking volume 10 march, 2023 p a g e | 164 www.americanjournal.org earns from their investments in stocks, and thus the return on equity is defined as the net profit after taxes for each dinar of the bank’s capital (251, 2019: mishkin). this indicator is considered one of the most important indicators for measuring the efficiency of using funds, as this indicator measures the efficiency of management in the optimal exploitation of the owners’ funds and the ability of these funds to generate profits (saeed and hussein, 2022: 302). it is calculated through the following equation: (cao, 2022: 15) rate of return on equity = (tax after profit net) / (equity) x 100 3the rate of return on deposits this indicator expresses the extent of the bank’s ability to generate profits in terms of employing customers’ deposits in various investment activities, which results in an increase in the bank’s returns. the return on deposits is calculated by dividing the profit after tax by the total deposits (current, savings, and fixed) (rashm et al., 2020: 27). it shows the extent of the bank's ability to compete for funds, and the high rate of return on assets indicates the bank's efficiency in collecting deposits and converting them into profitable investments. the rate of return on deposits is calculated from the following equation: (sabti, 2020: 68) the average return on deposits = (tax after net profit) / (deposits total) x 100 4the rate of return funds available for employment this rate measures the ratio of the net income generated to the total resources available for employees represented in deposits and equity. this rate is calculated by dividing the net profit after tax on equity and total deposits. this rate shows the ratio of net profit achieved to the sum of each of equity and deposit. it is explained in the following mathematical formula: (majid, 2020: 95) return on funds available for employment = (net profit) / (total deposits + property rights) x 100 the third section: the practical framework the first requirement: an overview of the iraqi private commercial banks, the study sample first: the iraqi credit bank the credit bank of iraq was established on 25.7.1998 by ancient iraqi commercial families. the capital upon incorporation amounted to (200) million dinars. on 8.7.2004, the bank’s shares were listed in the iraq stock exchange, where the capital on the date of listing was (1600) million dinars, while the current capital amounted to (250000) million dinars, and the nominal value of the share is 1 iraqi dinar. second: the international development bank for investment and finance the international development bank was established in 2011 with a capital of (100,000) million iraqi dinars. 2015) to become, with a paid-up capital of (250,000) million iraqi dinars, and quickly became one of the leading banks at the local and regional levels, as it provides advanced banking services to all its customers at the level of the individual and corporate sectors. the second requirement: the reality of diversifying banking services in the iraqi private commercial banks, the study sample, and the study for the period (2016-2021) first: the reality of diversifying banking services in the iraqi credit bank the iraqi credit bank provides limited services, and as shown in table (2), it is considered late and fluctuating in its diversification in the banking services it provides to its customers compared to the international development bank, and the bank also started using modern technologies in completing its work late as well compared to the international development bank, and since the bank was fluctuating in its diversification of the banking services it provided to its customers, so the researchers must clarify this fluctuation by addressing the reality of diversification in the banking services of the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 165 www.americanjournal.org bank, as shown in table (2), and it began with the deposit acceptance service, where the bank accepted all types of deposits throughout the study period, with regard to granting credit facilities, we start with cash credit, as the bank did not grant loans and the debit current account throughout the study period, but it began dealing in discounted commercial papers in 2018, and with regard to pledge credit, the bank provided this service and its two types of documentary credits and letters of guarantee, but with fluctuating periods and not on the length of the study period, and with regard to electronic services, the bank began to provide them in the year 2018, whether for individuals or companies, and with regard to investments, it has the bank invested in a fluctuating manner and not over the length of the study period, and with regard to remittances, the bank began to present them in 2018 and of both internal and external types, but stopped presenting them in 2019, then returned to presenting them in 2020 and 2021, and with regard to the window for buying and selling foreign currencies through the central bank the iraqi bank began to deal with it in 2017 and continued to provide it in 2018, but after this year until the end of the study period, dealing with it was fluctuating and not over the length of the study period, and with regard to deposit insurance, the bank began contributing to the iraqi deposit insurance company in 2020, with regard to brokerage, the bank began to provide this service by mediating the sale and purchase of shares in 2018, but after this year it fluctuated in providing it, and with regard to the salary settlement service, the bank did not provide it at all during the study period. second: the reality of diversification of banking services in the international development bank the development bank is considered to be distinguished in the development and diversification of banking services provided to customers, and this was evident in the annual reports of the bank in the years that pertain to the period of study, as it is keen to transfer the experiences of leading banks and to create new electronic banking services that are in line with the requirements of the iraqi economy in general and the iraqi banking sector in particular private. where the main objective of the bank is to become the most innovative and technologically advanced in iraq by diversifying banking services by providing the latest technology of transactions and electronic banking services to its customers. the bank, as one of the pioneering banks in using electronic banking services and transactions in iraq, seeks to facilitate banking dealings and make it accessible to all iraqis inside and outside iraq. the board of directors has determined that the various banking services provided by the bank to its customers, as indicated in its annual reports, must be accompanied by four elements, which are integrity, credibility, the safety of operations, and customer satisfaction, and this is what strengthened and distinguished the diversification of banking services provided by the development bank from the other bank, the study sample. therefore, it is necessary for the researchers to clarify the reality of the diversification of the distinguished banking services of the bank, as shown in table (2), where the bank provided the services that are in the table throughout the study period, with the exception of the deposit insurance service (through the iraqi deposit insurance company), which the bank began contributing to in the year 2019. the results of this positive service, which increased the confidence of depositors, appeared in the subsequent years after this year. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 166 www.americanjournal.org the source was prepared by the researchers based on: the annual reports of the banks, the study sample for the period (2016-2021). ● a symbol expressing that the bank provided the service throughout the time period for the study sample years (2016-2021). ○ a symbol expressing that the bank provided the service, but not from the beginning of the time period for the study sample years (2016-2021). the third requirement: analysis and discussion of the results of the study of the role of diversifying banking services in the profitability of iraqi private commercial banks, the study sample for the period (2016-2021) first: iraqi credit bank 1. the rate of return on equity (roe) it is clear from table (3) that the return on equity index took different rates during the study period, as its rate fluctuated between high and low during the study period, as this ratio was taken in the three years the first of the study (2016, 2017, 2018) increased and fluctuated from year to year because the diversification of the bank’s services was more like normal compared to the other bank in the study sample, and after these years, i.e. the last three years of the study (2019, 2020, 2021), this ratio was taken declining and in negative proportions, due to the bank’s failure to keep pace with diversification in the banking services it provides to its customers compared to the study sample banks, in other words, that there are circumstances and cases that necessitate banks to add or innovate new services. 2. rate of return on deposits (rod) it is clear from table (3) that the return on deposits index took different rates during the study period, as its rate fluctuated between high and low during the study period, as this ratio was taken in the first american journal of business management, economics and banking volume 10 march, 2023 p a g e | 167 www.americanjournal.org three years of the study (2016, 2017, 2018) increased and fluctuated from one year to another because the diversification of the bank’s services was more like normal compared to the other bank in the study sample, and after these years, i.e. the last three years of the study (2019, 2020, 2021), this percentage decreased in negative proportions, due to the bank's failure to diversify the banking services it provides to its customers, compared to the study sample banks. 3. rate of return on assets (roa) it is clear from table (3) that the return on assets index took different ratios during the study period, as its rate fluctuated between high and low during the study period, as this ratio was taken in the first three years of the study (2016, 2017, 2018) increased and fluctuated from year to year because the diversification of the bank’s services was more like normal compared to the banks in the study sample, and after these years, i.e. the last three years of the study (2019, 2020, 2021), this percentage decreased in negative proportions. this is due to the bank’s failure to keep pace with the diversification of the banking services it provides to its customers compared to the study sample banks, in other words, there are circumstances and cases that required banks to add or invent new services, and an example of this is the corona pandemic, whose effects emerged in two years (2020,2021), where most of the well-managed banks continued to keep abreast of developments in order to absorb or reduce the effects of this pandemic by providing new electronic services in order to continue their communication with the customer and thus the continuation of their work, and thus they have maintained their diversification in the banking services that they provide to its customers and that one of the reasons for the loss and the decrease in the rate of return on assets in the credit bank in the last three years of the study is the bank’s failure to keep up with the services that appeared, especially electronic ones, and thus it did not maintain its diversification by adding new services that appeared in the banking environment, and this is one of the reasons for the decrease of the rate of return on assets in the last three years of this study. 4. rate of return on funds available for employment (rof) the behavior of this indicator did not differ from the indicators above. table (3) and figure (1) illustrate this, which was based on the data from the bank's financial reports. table (3): indicators for measuring profitability in the iraqi credit bank for the period (20162021) indicators rate of return on equity % rate of change in the rate of return on equity % rate of return on deposits % rate of change in the rate of return on deposits % rate of return on assets % rate of change in the rate of return on assets % rate of return on funds available for employment % rate change in return on funds available for employment, % the years 2016 1.61 2.76 0.97 1.01 2017 2.12 31.67 4.65 68.47 1.40 44.32 1.45 43.56 2018 3.03 42.92 3.44 -26.02 1.12 -20 1.61 11.03 2019 -2.27 -174.91 -2.45 -174.12 -0.98 -187.5 -1.18 -173.29 2020 -1.16 -48.89 -1.57 -35.91 -0.65 -33.67 -0.67 -43.22 2021 -1.71 47.41 -3.10 97.45 -1.05 61.83 -1.10 64.17 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 168 www.americanjournal.org source: prepared by researchers based on: the annual reports of the bank for the period (2016-2021) figure (1) shows trends in the path of indicators of profitability measurement (return rate on equity %, rate of return on deposits %, rate of return on assets %, rate of return on funds available for employment %) in the credit bank of iraq for the period (2016-2021). figure (1) shows trends in the path of profitability indicators in the credit bank of iraq for the period (2016-2021) source: prepared by researchers based on the financial data in the above table of the iraqi credit bank for the period (2016-2021). second: international development bank 1. the rate of return on equity (roe) it is clear from table (4) that the return on equity index took different rates during the study period, as its rate fluctuated between high and low at the beginning of the study period, and then this ratio increased from year to year. where the bank achieved its highest percentage in relation to this indicator during the first four years of the study in 2016, as shown in table (4), as it reached (6.06%) at the end of 2016, and the reason for this is because the bank has achieved the highest net profit during the years of the first four of the study in 2016 and as proven by the bank’s lists, where the net profit after tax at the end of 2016 reached (16535) million dinars, and also achieved the highest net income from interest and commissions during the first four years of the study at the end of 2016, which amounted to (41682) one million dinars, due to the excellent diversification of banking services this year, and since this diversification in services is accompanied by commissions, so diversification had a clear positive role, because it is known that the various services provided by the bank are accompanied by commissions, and this led to an increase in net interest and commission income. thus, it had a positive impact on profitability and the rate of return on equity. after 2016, the rate of return on equity gradually decreased from year to year during the years (2017, 2018, 2019), due to the decrease in net profit as well as net interest and commission income gradually from year to year, and also that the bank did not add other services during the years (2017, 2018, 2019). -4 -3 -2 -1 0 1 2 3 4 5 6 2016 2017 2018 2019 2020 2021 rate of return on equity % % rate of return on deposits rate of return on assets % rate of return on funds available for employment % american journal of business management, economics and banking volume 10 march, 2023 p a g e | 169 www.americanjournal.org and compared to the year (2020, 2021) and despite the emergence of the corona pandemic, which had an impact on the economy in general, due to the circumstances that accompanied this pandemic, and this is what called the bank to provide new electronic services as well as strengthened its previous services, and thus the bank faced these challenges positively from in order to continue to communicate with customers, and this led to an increase in the rate of return on equity, which amounted to (4.28%) at the end of 2020, with an increase rate of (122.91%) compared to the previous year, and thus this percentage is considered the highest rate of increase between two years during a period of the study for this indicator, due to the increase in net interest and commission revenues, as shown in the bank’s income statement, which reached (41084) million dinars at the end of 2020, and reached (26015) million dinars at the end of 2019, thus the amount of the increase at the end of 2020 (15069) million dinars, an increase of (57.92%) over the year 2019, and as a result, this led to an increase in net profit after tax from (5181) million dinars at the end of 2019, to (13631) million dinars at the end of 2020, an increase of (8450) million dinars, an increase of (163.09)% compared to the previous year, and as a result, this led to an increase in the rate of return on equity. in comparison with the year 2021 and despite the continuation of the corona pandemic, the rate of return on equity continued to rise, reaching (5.78%) at the end of 2021, because the bank kept pace with developments and expanded its modern electronic services in this year, which is considered the year of challenges and opportunities for the bank. 2. rate of return on deposits (rod) the behavior of this indicator did not differ from the return on an equity index. table (4) and figure (2) explain this, which was based on the data from the bank's financial reports. 3. rate of return on assets (roa) the behavior of this indicator did not differ from the return on an equity index. table (4) and figure (2) explain this, which was based on the data from the bank's financial reports. 4. rate of return on funds available for employment (rof) the behavior of this indicator did not differ from the return on an equity index. table (4) and figure (2) explain this, which was based on the bank's financial reporting data. table (4) indicators for measuring profitability in the international development bank for the period (2016-2021) indicators rate of return on equity % rate of change in the rate of return on equity % rate of return on deposits % rate of change in the rate of return on deposits % rate of return on assets % rate of change in the rate of return on assets % rate of return on funds available for employment % rate change in return on funds available for employment, % the years 2016 6.06 5.30 2.52 2.82 2017 4.72 -22.11 3.97 -25.09 1.95 -22.61 2.15 -23.57 2018 2.90 -38.55 2.34 -41.05 1.15 -41.02 1.29 -40 2019 1.92 -33.79 1.27 -45.72 0.67 -41.73 0.76 -41.08 2020 4.28 122.91 2.06 62.20 1.27 89.55 1.44 89.47 2021 5.78 35.04 1.88 -8.73 1.14 -10.23 1.42 -1.38 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 170 www.americanjournal.org source: prepared by researchers based on: the annual reports of the bank for the period (20162021) figure (2) shows trends in the path of profitability indicators (return rate on equity %, rate of return on deposits %, rate of return on assets %, rate of return on funds available for employment %) in the international development bank for the period (2016-2021). figure (2) shows trends in the path of profitability indicators in the international development bank for the period (2016-2021) source: prepared by researchers based on the financial data in the above table of the international development bank for the period (2016-2021). the fourth section conclusions 1the most important finding of the study is that the higher the level of diversification of banks in the services they provide to their customers, the net profit and the rest of the indicators of profitability rise with it, and this was evident in the study sample banks. 2it became clear from the study that diversification in banking services has an important role in the profitability of commercial banks, as diversification contributed to the entry of banks into some areas of business and thus increasing their ability to compete and improve profitability. 3it became clear from the study, that the higher the level of diversification of the banks in the services they provide to their customers from one year to the next, the corresponding increase in the net profit and the rest of the indicators of profitability from one year to the next as well, and this was due to the increase in net interest and commission income due to the high level of diversification of the services provided by banks. 4the high levels of diversification in banking services require a large financial capacity, and as the study showed that deciding on high levels of diversification in banking services may require a large financial capacity, due to the high cost of producing new services in addition to its ability to maintain its current business. 0 1 2 3 4 5 6 7 2016 2017 2018 2019 2020 2021 rate of return on equity % % rate of return on deposits rate of return on assets % rate of return on funds available for employment % american journal of business management, economics and banking volume 10 march, 2023 p a g e | 171 www.americanjournal.org 5it turns out that banks interested in diversifying banking services make them enjoy a comparative advantage over banks that are not interested in diversifying banking services. 6it turned out that banks with a high level of diversification are exposed to higher risks than those with a low level of diversification, due to economic conditions. 7it became clear that the benefit of diversification exceeds its cost, and therefore the benefit of diversification in banking services, in general, exceeds its cost, due to the revenues expected to be achieved by banks as a result of this diversification. 8based on the results reached through the financial analysis of the net profit and the rest of the indicators of profitability, the research hypothesis has been proven correct, that the diversification of banking services has a positive role in the profitability of iraqi private commercial banks. list of sources and references first: arabic references and sources a. arabic books 1. al-bakri, thamer yasser, (2021), “marketing banking services”, first edition, dar al-manhaj for publishing and distribution, baghdad. 2. al-zamil, ahmed mahmoud and others, “marketing banking services,” first edition, ithraa for publishing and distribution, 2012, p. 63. b. magazines and periodicals 1. hassoun, hala idan hassoun, and khalaf, waheeda jabr, (2022), “analysis and measurement of internal factors affecting the profitability of commercial banks: an applied study on the bank of baghdad and the middle east bank,” al-riyadah journal for finance and business, volume 3, issue 1. 2. rashm, muhammad hassan, daghim, alaa dashi, and jawad, haider thajeel, (2020), “measuring hedge capital according to the requirements of the basel iii committee and its impact on the profitability of commercial banks: an applied study in the iraqi credit bank,” journal of studies in economics and management business, volume 3, issue 50. c. theses and university theses 1. khalaf, hala idan hassoun, (2021), “the impact of service quality dimensions and financial indicators on banks’ profitability: a comparative study of a sample of iraqi commercial and islamic banks,” master thesis, department of banking and financial sciences, college of administration and economics al-mustansiriya university, baghdad. 2. sebti, ola samir, (2020), “the impact of some electronic payment systems on the profitability of banks: applied research in a sample of iraqi commercial banks,” submitted to the council of the higher institute for accounting and financial studies at the university of baghdad, which is part of the requirements for obtaining a higher diploma equivalent to masters in banking. 3. majeed, haider kamel, (2020), “the impact of electronic payment methods on the profitability of a sample of iraqi private commercial banks for the period (2010-2018)”, master thesis, department of economics, college of administration and economics al-mustansiriya university, baghdad. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 172 www.americanjournal.org d. reports 1. al-ahly bank of iraq, the annual reports of the bank for the period (2016-2021). 2. credit bank of iraq, annual reports of the bank for the period (2016-2021). second: foreign sources and references a. book 1. ris, sc krunoslav. (2022), “5g and next-gen consumer banking services.” first edition, crc press. 2. armstrong, gary., kotler, philip & opresnik, marc, (2020), “marketing: an introduction”, fourteenth edition, by pearson education limited. 3. pride, w.m., hughes, r.j., & kapoor, j.r. (2019). "foundations of business". 6 ed. cengage learning. 4. ferrell, o.c., hartline, m., & hochstein, b.w. (2022). "marketing strategy". cengage learning 5. cao, jin, 2022, “the economics of banking”, first edition, routledge. 6. mishkin, frederic s., (2019), “the economics of money, banking, and financial markets”, twelfth edition, published by pearson education. b. journals & periodicals 1. do, h., ngo, t., & phung, q. (2020). “the effect of non-performing loans on the profitability of commercial banks: the case of vietnam”, national economics university, vietnam, accounting, 6(3), pp. 373-386. american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 1 www.americanjournal.org the impact of the external auditor's procedures according to international auditing standards (320, 330) in reducing significant misrepresentations of the financial statements ali lateef ayyed alghezi (1) ali.lateef@mu.edu.iq sarah abdulameer kamil abugallal (2) sarah.abdulmeer@mu.edu.iq majid gazi hasan (3) majid_gazy@mu.edu.iq waad hadi abd (4) waad1985@mu.edu.iq college of administration & economics, al-muthanna university, iraq(1,2,3,4) a b s t r a c t k e y w o r d s the research aims to know the procedures of the external auditor in accordance with the international auditing standard (320, 330) that enable him to express his opinion on the financial statements that they are generally prepared correctly, honestly and free from material distortions, and the most important of these procedures have been addressed in the theoretical framework of the research and to the most important reasons that lead to the existence of material misstatements in the financial statements, and then preparing a questionnaire targeting workers in the field of control and auditing according to a sample of (127), with which the study reached the most important conclusions, and the risks of significant misstatements in the financial statements increase when the external auditor does not separate between each of the error is unintentional and the fraud resulting from the management. the latter is preoccupied with detecting minor errors, and to the most important recommendations, which is the need to use relative importance when planning the audit process and during the examination stage in separating between unintentional error and fraud resulting from management and not being preoccupied with detecting minor errors, which is the focus on detecting misrepresentation material in the financial statements. external auditor procedures. material misstatements of financial statements, international standards on auditing (320, 330). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 2 www.americanjournal.org introduction audit risks have become a realistic matter that threatens the work of the external auditor, so he must know and realize the size of the risks effectively and study the factors influencing them in order to estimate the degrees of audit risks and identify the areas in which they rise and take the estimated levels into consideration when planning the audit process and take everything that would reduce the severity its impact on the financial statements. (rashid, kareem, & abd, 2023). by using the relative importance of the elements of the financial statements in total and at the level of account balances in determining the quality of the audit procedures necessary to collect relevant audit evidence about the understanding of the economic entity and its environment, including the controls of the effectiveness of the internal control system in order to evaluate and assess the risks of material misstatements to which the financial statements are exposed. accordingly, the external auditor will evaluate the extent to which information is presented and classified in the financial statements and reports in a fair and honest manner, and distinguish between unintended errors in the financial reports resulting from omissions in collecting or processing financial statements or in an incorrect accounting estimate, (abd, kareem, & kadhim, 2019), and intended distortions in the financial statements resulting from misuse of entrusted funds. for a specific person or disposition resulting from the act of managing the economic entity by manipulating books and accounting records to mislead the users of the financial statements. theoretical framework first: the concept of audit risk: audit risk means that the external auditor gives an improper professional opinion about the financial statements when they contain material misstatements ( simunic., & stein, 1990) audit risks may result for several reasons, including the failure of the external auditor to discover material misrepresentations that may exist in the financial statements due to his lack of experience or due to the failure to exercise the necessary professional care in which he expresses his opinion. audit risks include the following types: (nikolovski, & karadjova, 2016) * risks inherited from account balances: it means the possibility of a financial account balance from financial operations to the occurrence of a fundamental error, and it is material if it meets with other errors in the balances of accounts or other operations in the absence of procedures for the internal control system, (fearnley, & brandt, 2005). * control risk: it means the risk resulting from the possibility that the current internal control system of the economic entity did not detect or prevent the occurrence of material errors in the financial statements. it is not imagined that this risk is zero, because the internal control procedures cannot guarantee the prevention and detection of all material misstatements. these procedures may be ineffective in some cases as a result of the human element, which is due to negligence and exhaustion, ( dimitrijevic., & stancic, 2015 ). * risks of non-discovery: it is that the auditor's audit procedures lead to the absence of an error in one of the balances or a certain type of operation, and at the time when the error actually exists, it is material if it is combined with errors in other balances or in another type of operation. the external auditor is also exposed to the risks of termination of assignment: many clients change the external auditor due to the failure of the audit process to detect significant distortions in the financial statements or the conflict of interests of the client with the external auditor, ( mohammed, & flayyih, 2021 ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 3 www.americanjournal.org second: the concept of relative importance: it means the amount of riskiness of errors in the financial statements, whether individually or in aggregate, which is likely, given the surrounding conditions, to have a negative impact on the decision or judgment of the ordinary user of the financial statements. materiality in the financial statements is divided into two groups: ( acito., & johnson, 2009). * the overall relative importance of the elements of the financial statements: it indicates the amount of deviation that the auditor accepts in the financial statements as one unit, while still concluding the availability of a true and fair picture of the financial position, profits and losses of the economic entity under audit, and the auditor also needs to estimate the level of that deviation or the level of materiality before it begins to perform the audit process, and this type helps to determine the audit effort required to perform the audit process as a whole, (bernardi., & pincus, 1996). * relative importance at the level of transactions and account balances: indicates the amount of deviation that the auditor will accept in the group of operations or disclosure in the financial statements before concluding that the appropriate disclosure in the financial statements may mislead its users, and it also provides the basis for setting the maximum amount of deviation that the auditor will accept in the group of operations or disclosure of the financial statements before concluding that the appropriate disclosure has been deviate in a manner of materiality. materiality at this level determines the nature, timing and scope of the audit procedures to be performed in connection with the operations group or the disclosure of the financial statements, (david , & abeysekera, 2021) third: the concept of material misstatements in the financial statements: significant misrepresentations in the financial statements result from deliberate operations aimed at deceiving the users of the financial statements by manipulating the financial statements in a way that achieves a certain result. usually, the administration chooses accounting methods that lead to increasing assets, reducing crises, increasing revenues, and reducing expenses, which helps to transfer profits from the coming periods to the current period. this distortion is considered one of the difficult and dangerous matters, and the external auditor must exert the necessary professional care to detect this material misrepresentation. therefore, there are two types of distorted financial statements, which the external auditor should take into consideration when auditing the financial statements, namely: ( amiram., & rouen,. 2015). * financial data resulting from misrepresentation and manipulation by the economic entity management. * distorted financial statements arising from misappropriation of monetary and fixed assets by workers in the economic entity. fourth: reasons for material misstatements in the financial statements among the most important reasons for material misrepresentations in the financial statements are: (persons, 1995) , (bunget, & dumitrescu, 2009). *income smoothing: the management of some economic entities, in their financial statements and reports, goes with a steady stream of growth in profits instead of showing fluctuating profits from a series of big rises and falls for the sake of the illusions of investors and creditors. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 4 www.americanjournal.org *tax manipulation: the administration of some economic entities goes in their financial statements and reports to reduce profits and revenues and increase expenses by reducing the margins of tax withholding resulting from them. *inflating the management bonus: the management of some economic entities goes to link their bonuses to profits and circumvention contractual rights and obligations in order to inflate their bonuses. *escaping from government laws and regulations: by choosing accounting methods that contribute to reducing their decided profits in order to escape from the social burdens imposed by government regulations. *earnings management: it is a method of manipulating the accounts practiced to hide the actual performance of the economic entity for the purpose of achieving beneficial results for the economic entity or some of its employees. it is also known as: it is a proposed innovation in the preparation of the financial report with the intention of obtaining special benefits. it is also defined as: “changing the declared economic performance of the economic entity by the administration, either to mislead shareholders or to influence contractual results" . fifth: the procedures of the external auditor in accordance with the international auditing standard (320, 330) in order for the external auditor to be able to express his opinion on the financial statements, he designs audit procedures that help him to have reasonable conviction that the financial statements in general have been prepared correctly and honestly. among the most important audit procedures in accordance with international auditing standards (320, 330) are the following: ( abbas, & abd, 2020). * examining the internal control system in the economic entity, to ensure that it is designed in an effective manner for the purpose of preventing, detecting and correcting material misstatements in the financial statements. * after examining the internal control system, the initial assessment of the material misstatements in the financial statements is made, as the auditor, at the beginning of the audit process, puts an initial assessment of the financial misstatements in the financial statements (abd, el toby, & kareem, 2023). * benefiting from the initial assessment of material misstatements in the financial statements to find out the size of the samples that the external auditor must activate the audit procedures to collect the necessary and appropriate evidence to see if the financial statements have deviations or not.( abd, 2020) * examination of audit samples in accordance with audit procedures an audit procedure designed to know significant misrepresentation in the financial statements. these procedures include two types, namely (detailed tests), which have a fundamental role in reaching acceptable conclusions on which the auditor bases his professional opinion. and (analytical procedures) that focus mainly on the external auditor's evaluation of the financial information by studying the clear and expected relationship between each of the financial statements and the non-financial financial statements. (al-hassani , &al-jabri, 2021) * after conducting the examination on the samples that were withdrawn, the value of the essential distortions is estimated in them, and the estimated deviation of the samples under examination is compared with the permissible deviation of the samples that was previously determined. financial, and if the opposite is true, the external auditor increases the size of the audit samples and examines them. * after conducting the examination on the samples, discussions are conducted between the external auditor and the members of the supervisory work team to determine the size of the increase in the american journal of business management, economics and banking volume 14 july, 2023 p a g e | 5 www.americanjournal.org samples and the type of those financial accounts that may be exposed to material distortions in the financial statements due to fraud. * after increasing the size of the samples, additional audit procedures (detailed and analytical) are implemented aimed at ascertaining the existence of possible fraud or error that has an important impact on the financial statements, and that these amended or added procedures depend on the judgment of the external auditor after discussions with the members of the oversight work team. * after applying additional auditing procedures and detecting material misrepresentations in the financial statements, the higher administrative levels in the economic entity are informed of these misrepresentations as quickly as possible. this is through the external auditor expressing a qualified or negative opinion in his report or even refraining from expressing an opinion on the financial statements. * in the event that the management of the economic entity does not respond to the findings of the external auditor that there are material distortions in the financial statements, the withdrawal from the audit process is chosen. the third axis: the practical side this paragraph reflects an analysis of the general study model by determining the relationship between the independent variable, the procedures of the external auditor in accordance with international auditing standards (320, 330) in reducing material misstatements, and the dependent variable, the factors and risks affecting the size of material misstatements in the financial statements, as follows: table (1)the number of questions for the study variables: number questions in the questionnaire list variable 10 factors and risks affecting the size of significant misrepresentations in the financial statements. 10 the procedures of the external auditor in accordance with international auditing standards (320, 330) in reducing material misstatements in the financial statements. 20 the total source: prepared by the authors (2023) • description of the respondents to the research sample table (2) characteristics of the study sample the ratio the number certificate sequences %38 48 ph.d 1 18 23 accountant 2 31 40 master's 3 13 16 bachelor's 4 100% 127 total source: prepared by the authors (2023) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 6 www.americanjournal.org calculating the cronbach coefficient for the variables of the study: table (3) statement of the validity of the questionnaire kornbach alpha coefficient the scale 0.865 factors and risks affecting the size of material misstatements in the financial statements. 0.874 the procedures of the external auditor in accordance with international auditing standards (320, 330) in reducing material misstatements in the financial statements. 0925 all variants source: prepared by the authors (2023) discuss the results: the first axis: the procedures of the external auditor in accordance with international auditing standards (320, 330) in reducing significant misrepresentations in the financial statements. table (4) presents the arithmetic means, standard deviations, the level of response and their significance for the variable of the external auditor’s procedures in accordance with international auditing standards (320, 330) in reducing material misstatements in the financial statements. it is noted from the table that paragraph (1) which refers to (the use of the total relative importance of the elements of the financial statements by the external auditor helps in estimating the level of material misstatements to which the financial statements are exposed). i obtained the highest arithmetic mean (4.0866) and a standard deviation of (0.67874) this shows the consistency of the research sample's responses towards this paragraph and within the "very high" response level". while paragraph (6), which refers to (relative importance contributes to the external auditor obtaining reasonable assurance that the financial statements as a whole are free from material errors, whether due to fraud or error and thus avoiding the risk of non-discovery) got the lowest arithmetic averages with an arithmetic average of (3.8504). ) and a standard deviation of (0.87359), and this indicates the agreement of the research sample answers and within the "high" response level. as for the general rate of the external auditor's procedures variable according to international auditing standards (320, 330) in reducing significant misrepresentations in the financial statements, the general arithmetic mean was (3.965), with a standard deviation of (0.7648), and at the level of "high" response. schedule (4) arithmetic means, standard deviations, response level, importance, factors and risks affecting the size of material misstatements in the financial statements (n=127) importance answer level standard deviation arithmetic mean statement sequenc es 1 high 0.67874 4.09 the use of the overall relative importance of the elements of the financial statements by the external auditor helps in estimating the level of significant misrepresentation to which the financial statements are exposed. 1 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 7 www.americanjournal.org 3 high 0.66648 4.0157 the use of materiality at the level of the balances of the elements of the financial statements helps in assessing and estimating the inherent risks of the financial. 2 5 high 0.81066 3.9606 the relative importance contributes to increasing the effectiveness of evaluating the internal control system and determining the level of control risks to which the audit process is exposed, resulting from the failure and weakness of the internal control system in preventing the occurrence or discovery of material misstatements and risks in the balances that make up the financial statements. 3 2 high 0.79147 4.0236 the use of relative importance when planning the audit process and during the examination stage contributes to the separation between unintentional error and fraud resulting from management and not being preoccupied with detecting minor errors, which focuses on discovering significant misrepresentation in the financial statements. 4 7 high 0.75328 3.9370 the relative importance share in to the external auditor avoiding the risk of misestimating of the elements of the financial statements by measuring the relative importance at the level of the financial statements as a whole and at the level of balances. 5 10 high 0.87359 3.8504 materiality contributes to the external auditor obtaining reasonable assurance that the financial statements as a whole are free from material errors, whether due to fraud or error, and thus avoids the risk of non-discovery. 6 4 high 0.71785 3.9764 the relative importance of the audit procedures contributes to the audit process as a guide to planning the essential procedures, both analytical and detailed, as attention and control work are directed to those items or accounts that are important, or that are subject to errors or fraud. 7 9 high 0.77083 3.9055 materiality contributes to the external auditor's avoidance of audit risks when it enhances his awareness of the existence of an inverse relationship between the level of risk of material misstatement and the amount of evidence that the auditor must collect. 8 4 high 0.83556 3.9843 identifying and evaluating the dangers of material misstatements enables the external auditor to reach the nature of transactions between management and employees within the 9 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 8 www.americanjournal.org economic entity, all of which helps the auditor in proper planning of the audit process and performing his work with high quality. 4 high 0.74995 3.9065 the relative importance through the stages of the audit contributes to changing its decision about the degree of exposure of the financial element to material misstatement. for example, when the degree of material misstatement is low for a financial element at the planning stage, it may be high for the same element at the examination stage and presenting the audit results. 10 high 0.76484 3.965 total the second axis: factors and risks affecting the size of material misstatements in the financial statements. table (5) presents the arithmetic means, standard deviations, and the level of response and their significance for the factors and risks variable affecting the size of material misstatements in the financial statements. it is noted from the table that paragraph (4) which refers to (the risks of material misstatements in the financial statements increase when the external auditor does not separate between unintentional error and fraud resulting from management and is preoccupied with the latter by detecting minor errors), i got the highest arithmetic averages of (4.0945) and a standard deviation of (0.81097), this shows the consistency of the research sample's answers towards this paragraph and within the "very high" response level. while paragraph (9), which refers to (the external auditor may fail to reach the nature of transactions between management and employees within the economic entity as a result of not identifying and evaluating the risks of material misstatements in the financial statements) obtained the lowest arithmetic averages with an arithmetic mean of (3.7874) and a standard deviation of (0.93120) this indicates the agreement of the research sample answers within the “high” response level. as for the general rate of the factor and risk variable affecting the size of material misstatements in the financial statements, the general arithmetic mean was (3.94), with a standard deviation of (0.824), and at the level of the response "high. table (5) arithmetic means, standard deviations, response level, and importance factors and risks affecting the size of material misstatements in the financial statements (n=127) importance answer level standar d deviatio n arithmet ic mean statement seque nces 2 high 0.81266 4.0787 one of the factors affecting the extent of material misstatements in the financial statements is the failure of the external auditor to assess the amount of deviation in the financial statements as a single unit . 1 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 9 www.americanjournal.org 4 high 0.81634 3.9843 one of the factors affecting the size of the material misstatements of the financial statements is the amount of the size of the inherited risks of the balances and the elements of the financial statements, that is, the greater the size of the inherited risks, the greater the potential that the financial statements will be exposed to material misstatements. 2 3 high 0.76079 4.0236 one of the factors affecting the increase in the size of the material misstatements of the financial statements is the high control risks resulting from the incorrect assessment of the internal control system. 3 1 high 0.81097 4.0945 the risks of material misstatements in the financial statements increase when the external auditor does not separate between unintentional error and fraud resulting from management and is preoccupied with the latter by detecting minor errors. 4 9 high 0.77705 3.8031 the external auditor is exposed to the risk of erroneous estimation of relative importance. what the auditor considers relatively important when examining the customer's financial statements is the nature of his commercial activity. it may not carry the same relative importance if the client's activity is industrial. 5 5 high 0.82910 3.9449 one of the factors influencing the external auditor to obtain acceptable assurance that the financial statements as a whole are free from material errors, whether due to fraud or error, is the high rates of non-discovery risks, and then a clean report is issued even though they contain material distortions. 6 6 high 0.81266 3.9213 one of the risks that the external auditor is exposed to is poor planning of the basic audit procedures, both analytical and detailed, as attention and control work is directed to those items or 7 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 10 www.americanjournal.org accounts that are not considered important or are not subject to errors or fraud. 7 high 0.89290 3.8898 materiality share in to the external auditor's avoidance of audit risks when it enhances his awareness of the existence of an inverse relationship between the level of risk of material misstatement and the amount of evidence that the auditor must collect. 8 1 high the external auditor may fail to reach the nature of the dealings between management and employees within the economic entity as a result of not identifying and evaluating the risks of material misstatements in the financial statements. 9 8 high 0.79674 3.8740 the external auditor is exposed to the risk of material misstatement in the financial statements when a financial element is judged to have a low material misstatement at the planning stage, and it is found later that the same element is exposed to a high risk of material misstatement at the stage of examination and presentation of the audit results. 10 high 0.824 3.94 total source: prepared by the authors (2023) examining the relationship between the independent variable, the procedures of the external auditor according to international auditing standards (320, 330) in reducing material misstatements and the dependent variable, the factors and risks affecting the size of material misstatements in the financial statements in the financial statements . table (6) matrix of correlation coefficients between study variables correlations external auditor procedures according to international auditing standards (320, 330) factors and risks affecting the magnitude of material misstatements external auditor procedures according to pearson correlation 1 .786** sig. (2-tailed) .000 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 11 www.americanjournal.org international auditing standards (320, 330) n 127 127 factors and affecting the magnitude of material misstatements pearson correlation .786** 1 sig. (2-tailed) .000 n 127 127 it is clear from the above table that there is a significant relationship between the independent variable, the procedures of the external auditor according to international auditing standards (320, 330) in reducing material misstatements, and the dependent variable factors and risks affecting the size of material misstatements in the financial statements in the financial statements (.786**) at a significant level (0.01). * examining the effect relationship between the independent variable, the procedures of the external auditor according to international auditing standards (320, 330) in reducing material misstatements and the dependent variable, factors and risks affecting the size of material misstatements in the financial statements. morale level sig. t t-test test effect coefficient β independent variables 0.000 14.227 0.831 the extent of material misstatements in the financial statements. .007 2.760 0.645 fixed limit 0.618 r square is the coefficient of determination 202.394 test f it is clear from the above table that the coefficient of the fixed limit amounted to (0.645), so if the independent variable is equal to zero, that is, in the absence of the effect of the external auditor’s procedures in accordance with international auditing standards (320, 330) in reducing material distortions in the audit process, it is equal to (0.645), while it reached the calculated (t) value is (14.227), and when compared to its tabular counterpart of (1.646), we find that it is greater than the tabular (t), with a degree of freedom of (127), and the coefficient of determination (r^2) explained its value (0.618) of the effects that occur in the volume of material distortions in the financial statements and these effects are due to the effect of the independent variable, the procedures of the external auditor according to international auditing standards (320, 330), while the other effects amounting to (0.382) are due to other variables that were not included in this model. the f test and the level of significance (sig) measure the significance of the model as a whole, as it is noted that the estimated model is significant at a level of significance less than (5%). when comparing the calculated f with its tabular counterpart, we find it larger as its value amounted to (.202.394), while the tabular f reached (2.31), but (the level of significance sig. f) for the model as a whole represents (0.000), which is less than (5%) that the researcher assumed and he accepted model hypothesis (there is a significant impact relationship between the procedures of the external auditor according to international auditing standards (320, 330) and limiting the size of material misstatements in the financial statements. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 12 www.americanjournal.org conclusions and recommendations conclusions: 1the risks of material misstatements in the financial statements increase when the external auditor does not separate between unintentional error and fraud resulting from management and is preoccupied with the latter by detecting minor errors. 2one of the factors affecting the extent of material misstatements in the financial statements is the failure of the external auditor to assess the amount of deviation in the financial statements as a single unit. 3one of the factors influencing the size of the material misstatements of the financial statements is the size of the inherited risks of the balances and elements of the financial statements, that is, the greater the size of the inherited risks, the more likely the financial statements will be exposed to material misstatements. 4one of the factors influencing the external auditor to obtain acceptable assurance that the financial statements as a whole are free from material errors, whether due to error or fraud , is the high rates of non-discovery risks, and then a clean report is issued even though they contain material distortions. recommendations: 1the need to use relative importance when planning the audit process and during the examination stage in separating between unintentional error and fraud resulting from management and not being preoccupied with exposing minor errors, which focuses on discovering material misrepresentation in the financial statements. 2the external auditor should use materiality at the level of the balances of the elements of the financial statements in evaluating and estimating the inherent risks of the financial balances, and thus limiting material misstatements of the financial statements. 3the relative importance of the audit procedures contributes to the audit process as a guide to planning the essential procedures, both analytical and detailed, as attention and control work are directed to those items or accounts that are important, or that are subject to errors or fraud. 4materiality contributes to the external auditor avoiding the risk of misestimating of the elements of the financial statements by measuring the relative importance at the level of the financial statements as a whole and at the level of balances. references 1abbas, f. h., kareem, a. d., & abd, w. h. (2020). audit compliance and its role of administrative and financial in reducing the manifestations corruption of government institutions (applied research in the palarch's journal of archaeology of federal office of financial supervision). egypt/egyptology, 17(7 ,)16962-16982. 2to reduce fraud and strengthen the role of abd, w. h., .(2020). proposed audit program corporate governance applied research in (in the local environment of auditors economic 121.-sciences, volume 15, issue 58, pages 102 american journal of business management, economics and banking volume 14 july, 2023 p a g e | 13 www.americanjournal.org 3cedures over abd, w. h., el toby, b. h. m., & kareem, a. d. (2023). activating auditing pro government financial reports through the mediating role of a proposed audit international journal of professional business review: int. j. prof. bus. rev program.,. 8(5 ,) 20. 4program proposal for local abd, w. h., kareem, a. d., & kadhim, h. a. (2019). audit accounts auditors: applied research on a group of international auditing 7 ,international journal of innovation, creativity and change standards. (8 ,)201-222. 5sions and the correction of acito, a. a., burks, j. j., & johnson, w. b. (2009). materiality deci the accounting review accounting errors., 84(3 ,)659-688. 6jabri, a. j. (2021). a proposed model and program for -hassani , w. h., &al-al standard (520) evaluating banking performance according to the international auditing analytical procedures/applied research on a sample of commercial banks listed in the iraqi stock exchange. tikrit journal of administration and economics sciences, pp. 80-17,55,2,60 7(2015). financial statement errors: evidence from the amiram, d., bozanic, z., & rouen, e. review of accounting studies distributional properties of financial statement numbers., 20 , 1540-1593. 8bernardi, r. a., & pincus, k. v. (1996). the relationship between materiality thresholds and managerial finance ents of fraud risk.judgm, 22 (9 ,)1-15. 9, a. c. (2009). detecting and reporting the frauds and errors by bunget, o. c., & dumitrescu annales universitatis apulensis: series oeconomica the auditor., 11(1 ,)117. 10david, r., & abeysekera, i. (2021). auditor judgements after withdrawal of the materiality journal of risk and financial management australia. accounting standard in, 14(6 ,)268. 11dimitrijevic, d., milovanovic, v., & stancic, v. (2015). the role of a company’s internal financial internet quarterly control system in fraud prevention., 11(3 ,)34 -44. 12tie, v. a., & brandt, r. (2005). auditor independence and audit risk: a fearnley, s., beat journal of international accounting research reconceptualization., 4(1 ,)39-71. 13taie, b. f. k., & flayyih, h. h. (2021). the effect of -mohammed, m. j., hiloaliabi, j. a., al estudios de it procedures in accordance with the ias 545 in assessing audit risk.using aud economía aplicada, 39(11 ,)4. 14nikolovski, p., zdravkoski, i., menkinoski, g., dicevska, s., & karadjova, v. (2016). the ces: basic and applied research international journal of scien concept of audit risk. (ijsbar,) 27(1 ,)22-31. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 14 www.americanjournal.org 15persons, o. s. (1995). using financial statement data to identify factors associated with journal of applied business research (jabr fraudulent financial reporting.,) 11(3 ,)38-46. 16t., kareem, h. m., & abd, a. p. d. w. h. (2023). the role of rashid, l. d. r. financial control in reducing waste of public money through the world mediating role of sustainable auditing (applied research). economics and finance bulletin, 22 ,174-179. 17contemporary ein, m. t. (1990). audit risk in a client portfolio context.simunic, d. a., & st accounting research, 6 (2 ,)329-343. american journal of business management, economics and banking issn (e): 2832-8078 volume 3, | aug., 2022 p a g e | 5 www.americanjournal.org the role of the external auditor in knowing the international standard (265) and achieving governance in economic units kanar jassim mohammed baghdad university /higher institute of accounting and financial studies kanar.kadhem1601@pgiafs.uobaghdad.edu.iq prof. dr. sabiha barzan farhoud baghdad university /higher institute of accounting and financial studies sabehabarzan@gmail.com. a b s t r a c t k e y w o r d s this research aims to know the international auditing standard (265) to implement the role of the external auditor, governance in economic units, so the research problem is in light of the following question: what is the role of the external auditor in the concept of international application (265) to achieve governance in economic units, private highlights the importance of the research is of the importance of a key role in the field of international knowledge (265) as for the research methods: my methodology has been adopted: the first approach is in deductive: second is the inductive approach: 2018 and then you include it in the governance of the organization you manage, which you manage in the governance of units economic. external auditor, international auditing standard (265), governance. introduction the second axis: the relationship between independent and dependent research variables 2-1 external auditor (independent variable) 2-1-1 definition of the external auditor before it is defined by the ways that point outward, which can make it appropriate and its rhetoric, rhetoric, and plan. an external analysis of the process of impartial critical examination of the unit’s books, records and documents by one person, with the aim of achieving its objective, with the aim of searching for the unit’s financial value within a certain period .auditor) is synonymous with terms such as examiner of financial accounts mailto:kanar.kadhem1601@pgiafs.uobaghdad.edu.iq mailto:sabehabarzan@gmail.com american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 6 www.americanjournal.org and chartered accountant (abdullah, 150: 2014) and the meaning of the independent auditor licensed certified public accountant in the united states (cpa ((certified public accountant, and the legal auditor in the kingdom is a chartered auditor), bearings legally authorized in the netherlands ((the accountant’s register is called the accountant registered in germany (lutfi, 278: 2015). in all material respects and there are no errors or fraud in the examination sample to complete the process of examining the image. the reports and final financial statements of the economic unit, and undertake the examination process the private sector has the right to work and express an opinion after the completion of the examination process, to be reasonably free of financial statements responsible for errors and material misrepresentation resulting from fraud or fraud and violations of laws and regulations that have a direct impact on the stakeholders in the economic unit. 2-1-2 the importance of the external auditor: the importance of the external auditor is highlighted by the following: (haddad, 2016: 7) 1.it contributes to display a beautiful and transparent example of search results and verification of search results and verification. 2.the team examines the internal audit system followed and indicates its deficiencies, in its report in order to protect commercial and potential interests. 3.check for errors, marks, and trademarks in the internal branding of the software modules. 4.enhancing the confidence of owners, investors, companies, holdings, and holdings, and empowering and empowering them 5.assisting the administration with business results in accordance with the set goals, deciding and drawing its administrative policies, and the future, and his meal provided in the imposition of tax. 6.monitoring the work of information accounting information systems within informational, informatics, informatics companies. 2-2 the role of the external auditor on the internal deficiencies of those charged with governance (international standard 265) this international audit audit (265, paragraph 1) states the responsibility of governance and management responsibility, governance and management, discovered by the audit, financial audit. the internal management system is designed or implemented and is operated in a manner that is unable to control the prevention, detection and correction of misstatements in the financial statements in a timely manner..  lack of control to prevent or detect errors .the researcher believes that the auditor, in particular, accurately and reliably, is an internal management, an internal control in protecting the financial assets that own the information on financial affairs. sorry and hit her with financial means. 2-3 principles of governance in economic units: 1.the existence of a framework for governance subordinate to the circle: a general existence framework for governments subordinate to governance, their agencies and american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 7 www.americanjournal.org agencies, linking them together, linking them together, linking them together, linking them together, joining them together, including the registry, transparency and all related parties. 2.title rights protection: from dividends and stock grant. 3.equal treatment of shareholders:  provide equal voting rights for shareholders within each class, and they have the right to obtain information on the rights and experience of all classes of shares before purchasing shares.  that the voting be done by the trustees or delegates in a manner agreed upon by the share holders.  that the procedures followed in the meetings of the general assembly of shareholders allow equal treatment of both, and the company should avoid the difficulties and costs of voting.  banning the trading of shares in a manner that is not transparent and transparent, and trading or accessing the account of insiders is prohibited.  members of the board of directors and executive directors of their own businesses 4.respecting the rights of stakeholders of economic stakeholders: working and achieving sustainability for projects based on sound financial foundations. 5.adequate and appropriate disclosure and transparency of dealings: eia and eia and transparency of dealings: endorsed by the organization for economic cooperation and development:  what is in disclosure and is not limited to financial information: financial results and results of operations of the economic unit. it can start in foreign relations in the united states.  preparing financial statements and documents.  conducting an independent external audit by a competent and effective auditor until it delivers objective assurances from the point of view of events and stakeholders valued by malaysia.  and discuss and message and message and message and message and message and message  provides value provides equal and timely opportunities to be used in providing relevant information. 6.responsibilities of the board of directors: working to make the board of directors responsible, accountable and a factor in the basics and decisions of its permanent evaluation through the following:  determine the powers and conditions of the board of directors.  determining the specifications, qualifications and experience of the members of the board of directors and the method of their selection.  determining the supervisory and supervisory role of the members of the board of directors over the executive managers. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 8 www.americanjournal.org 2-4: issues related to governance in economic units: communicate with internal governance issues. here are some of the messages that appear on the list and continue 1. a change in a change in a change in a change in a change in european politics. 2. it was directed at financial analysis. 3. management's use of accounting estimates and material risks. 4. the issues attached to its disclosure. 5. pakistan financial statements are affected by unusual transactions such as recurring fine or material write-off of asset values. 6. uncorrected false data details in the financial statements. for example, an economic unit may decide not to correct trivial errors on the grounds of their insignificance. 2-5governance responsibility performs governance 1. any great explanations to get information or explanations from management. 2. excessive restrictions are imposed until the implementation of enforcement measures is sufficiently excessive. 3. imposed restrictions. 4. lack of management cooperation in the financial statements. 5. about deficiencies in internal controls with which the contacts intend to govern. this is the right thing, communicating with management directly. 6. quarters of the eyes. 2-6: indicators of deficiencies in the principles of governance in the economic unit: 1. a restatement of previously issued financial statements to reflect the correction of a material misstatement resulting from a deficiency or error. 2. failure of management to cooperate in deficiencies identified in internal management by the external auditor. 3. lack of internal controls and lack of interest on the part of management to make sure what is important are properly checked. 4. fraudulent activity about management, regardless of material or teaching material or inconsistencies. 5. determining the accuracy of errors in the financial statements that are not detected by existing internal controls. 6. management's inability to properly supervise the preparation of financial statements. 2-7the relationship of those charged with governance with the auditor and their external role in revealing the shortcomings those charged with governance person(s) or organization(s) organizations board of trustees economic unit. manifested 1. those charged with governance shall communicate with the external auditor and nominate other persons or persons to keep pace with practical developments. 2. governance condition, subordinate to governance. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 9 www.americanjournal.org 3. good evening, good evening 4. on international wisdom, wisdom, the difficulties encountered in the audit process by the external auditor. 5. wise... 6. those charged with governance shall obtain assurances from the external auditor. 7. evaluating communications with the external auditor in terms of their adequacy 8. governance and the external office of governance and the external office 9. on the international share, and governance, a report from the external auditor about the internal deficiencies that lead to a material misstatement final final exploration: 1. can pounder external to simply conveyed efficiencies in internal management data count finance mistakes and common effects among users finance the erroneous pass through each fault. in terms of communicating with management and those in charge of 2. to the external auditor describe the deficiencies identified by auditors in internal controls and explain their effects on the performance of the economic unit. 3. the external auditor must provide adequate information for those charged with governance continuing judgment in the field of communication. the auditor should be sure that he explains:  if it was appropriate in this sense of the financial statements.  if to consider the arrangements for the internal arrangement. 4. governance is limited to governance. sources 1. david c. hay and w. robert kinchel. (2017) meta-regression in review research: evaluating the evidence for a big n audit firm's premium. audit: journal of practice and theory 36:2, 133-159. 2. david n. herda and james j. laville. (2015) client identification and client commitment in a privately owned client setup: unique constructions with adverse effects on auditor objectivity. accounting perspectives 29:3, 577-601. publication date online: march 1, 2015. 3. emily e. griffith, kristen j. nolder, and richard e. petty. (2018) the detailed probability model: a meta theory for compilation of reference judgments and decision-making research. auditing: journal of practice and theory 37:4, 169-186, online publication: january 1, 2018, kenneth l. beals, kristi haine, sarah e. stein. (2018) a field study on the membership of small accounting firms in associations and networks: implications for audit quality. accounting revision 93:5, 73-96 publication online: january 1, 2018. 4. frank goldenmond, andrew hill, louis goss, jeroen peyten and niggs jan duijm, (2006) “developing an audit method for evaluating the quality of safety barrier management,” hazardous materials journal, vo.130, no. 3, p. 234-241. 5. gary w. adams, david r. campbell, mary campbell, and michael b. rose(2006) “preventing fraud,” cpa online journal, jan. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 10 www.americanjournal.org 6. gregory capps, lisa konsi and cathy r. petroni. (2016) natural optimism in financial reporting: a state of mind. accounting outlook 30:1, 79-91. publication date online: september 1, 2015. 7. hesun chung, catherine hyejung sono, eunseok zhang, and jung hag choi. (2019) opinion shopping to avoid an ongoing audit opinion and post-review quality. auditing: journal of practice and theory 38:2, 101-123 online publication: june 1, 2018. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 90 www.americanjournal.org the use of competitor analysis as a factor of increasing the competitiveness of the company u. a. sharipova, candidate of economic sciences, associate professor, head of the department of international finance and investments of the university of world economy and diplomacy a b s t r a c t k e y w o r d s along with theoretical studies of the essence of competition and competitiveness, the problem of practical assessment of competitiveness has long been discussed in the economic literature. it can be stated that certain successes have been achieved in assessing the competitiveness of products to date, quite acceptable methods for assessing the competitiveness of identical goods and services have been developed. situation, complicate, assessment,competitiveness of enterprises introduction: the situation is more complicated with the assessment of the competitiveness of enterprises. despite the fact that certain steps have been taken and are being taken in this direction, economists have not developed a universal and universally recognized methodology for a comprehensive assessment of the competitiveness of an enterprise at the present time. at the same time, there is a need to assess the competitiveness of an enterprise, since in a market economy, the assessment of its competitive positions is an integral element of the activities of any economic entity. the study of competitors and the conditions of competition in the industry is required by the enterprise first of all in order to determine what its advantages and disadvantages are over competitors, and draw conclusions for the development of the enterprise's own successful competitive strategy and maintaining a competitive advantage. determining the competitiveness of an enterprise is an integral element of the activities of any economic entity. in particular, the assessment of the competitiveness of an economic entity is necessary in order to: • develop measures to improve competitiveness; • selection of counterparties for joint activities; • drawing up a program for the company's entry into new sales markets; • implementation of investment activities; • implementation of state regulation of the economy. in any case, the assessment of the competitiveness of the enterprise pursues the goal: to determine the position of the enterprise in the market under study. the main task of every economist studying the problem of assessing the competitiveness of enterprises is to find the criteria of competitiveness, its sources and factors. the analysis of the economic literature american journal of business management, economics and banking volume 13 june, 2023 p a g e | 91 www.americanjournal.org on the subject under consideration allows us to identify several approaches to solving the formulated problem. next, the main known methods of assessing the competitiveness of companies will be analyzed, their advantages and disadvantages will be summarized. speaking about the classification of existing methods, first of all, we note that economists have proposed a huge variety of different methods for assessing the competitiveness of enterprises (the score goes to dozens). to match this variety of methods, there are many classifications of them: according to the theoretical content, according to the form of displaying the evaluation results, according to the form of mathematical connection of indicators and a number of others. within the framework of this study, a meaningful (classical) classification of methods for assessing the competitiveness of companies will be analyzed. also note that the study considers only the main (most common) of the existing approaches. so, at present, the following main methods of assessing the competitiveness of enterprises can be distinguished. product methods the first thought that comes to mind when solving the problem of assessing the competitiveness of an enterprise is that the competition of companies in a market economy has the form of product competition, and the ability of a company to compete in a certain commodity market directly depends on the competitiveness of its goods. this position is repeatedly confirmed by economic practice, which indicates that the absolute majority of competitive companies are represented on the market by competitive products. conversely, it is difficult to imagine a successful enterprise producing products that are not in demand among consumers. within the framework of the considered approach, the relationship between the competitiveness of the product and the success of the company is so strong that these categories are practically identified. product methods are based on the judgment that the assessment of the competitiveness of an economic entity can be made through an assessment of the competitiveness of its products: the higher the competitiveness of the goods, the higher the competitiveness of the enterprise. at the same time, various marketing and qualimetric methods are used to determine the competitiveness of products, most of which are based on finding the price-quality ratio of products. there are many methods for finding this ratio. below is a brief description of the most common of them the indicator of the competitiveness of an enterprise, as a rule, is determined by finding a weighted average among the indicators of competitiveness for each type of product, where the volumes of sales of the corresponding type of product act as weights: the total consumption costs include both the cost of purchasing the product itself and the costs of its operation, purchase of consumables, maintenance (including repairs) and disposal. note that some researchers suggest using its market share as an indicator of the competitiveness of products, which, in our opinion, is a more accurate reflection of competitiveness. the undoubted advantages of the considered approach include the fact that it takes into account one of the most important components of the competitiveness of the enterprise – the competitiveness of its products. indeed, it is difficult to imagine a successful enterprise that does not have a portfolio of competitive products. the disadvantages are that the competitive strength of the products is still not identical to the sustainable competitive advantage of the enterprise, since any price or quality advantages of the products are relatively quickly copied by competitors and the economic benefits from them disappear. also, certain complaints are caused by reducing the competitiveness of products to an assessment of the price-quality american journal of business management, economics and banking volume 13 june, 2023 p a g e | 92 www.americanjournal.org ratio, which does not take into account the degree of its innovativeness, which is of great importance when positioning products on the market. in addition, the application of this group of methods involves the comparison of similar products. at the same time, the development of commodity-money relations leads to increasingly aggravated differences in the economic conditions of enterprises, their increasing diversification, and increasing differentiation of goods and services. it is becoming increasingly difficult to define clear geographical boundaries of a particular market, to establish a list of competing goods, which entails the low applicability of such methods of assessing the competitiveness of enterprises. however, the main disadvantage of this approach is that it allows you to get a very limited idea of the advantages and disadvantages in the work of the enterprise, since its competitiveness takes the form of product competitiveness and does not affect other aspects of its activities. after all, the competitiveness of products reflects the level of demand for products, and the competitiveness of an enterprise reflects the level of efficiency of economic activity. it is not by chance that economic practice abounds with examples of how economic entities producing quite competitive products fail. the reason for this is the fundamental contradiction between the competitiveness of the enterprise and the competitiveness of its products. the fact is that the competitiveness of products is evaluated primarily from the point of view of meeting the needs of the buyer. the competitiveness of the enterprise is assessed from the point of view of the interests of the owner (management, investor) of the business entity. in other words, the lower the price of a product, the greater its competitiveness. however, whether such a price will be able to provide the necessary economic efficiency for further expanded reproduction of the enterprise is a big question. an enterprise that produces even the most remarkable products, but does it with chronic losses, cannot be competitive. it is because of this that we consider the assessment of the competitiveness of an economic entity purely through the assessment of the competitiveness of its products to be fundamentally incorrect (for a detailed consideration of the issue of the ratio of the competitiveness of an enterprise and the competitiveness of its products, see here). at the same time, the inadmissibility of identifying the categories of "enterprise competitiveness" and "product competitiveness" was not always obvious. indeed, the main key competence in the conditions of the industrial economy was the production of products. with the development of the post-industrial economy, when the structure of the enterprise has become much more complex than just an assembly shop, the number of key competencies required for the success of the company has increased significantly. with the increase in the number of key competencies, the importance of the production function inevitably began to decrease. moreover, in the modern economy, when technologies make it possible to outsource the assembly of goods to subcontractors (often geographically located in other states) without losing the quality characteristics of products, the process of material production less and less determines the competitiveness of the company. in these conditions, cardinal differences between the assessment of the competitiveness of an enterprise and the assessment of the competitiveness of its products are manifested. references 1.mirzaliev s., sharipov k. a review of energy efficient fluid power systems: fluid power impact on energy, emissions and economics //архив научных исследований. – 2020. – №. 30. 2.mirzaliev s. a review of energy saving techniques in mobile hydraulic machines. – 2018. 3.mirzaliev s. lumped parameter modeling of quick coupling //acta of turin polytechnic university in tashkent. – 2018. – т. 8. – №. 2. – с. 30-33. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 68 www.americanjournal.org the concept of "personality" in pedagogy and specific features of personality development zhakbarova oyazimkhon mutalipovna teacher of the department of general pedagogy of andijan state university a b s t r a c t k e y w o r d s this article describes the issues of personality development, the conditions that hinder personality development in the field of pedagogy, and the reasons that hinder their development. also, the article presents the characteristics of the individual and the factors affecting their development and the existing conclusions. personality, maturity, pedagogy, education, environment, factors, cause, essence, genetic characteristics, biological factors, teacher, skill. introduction: the concept of a person refers to a person and serves to represent a member of society who is psychologically developed, distinguished from others by his personal characteristics and behavior, and has a certain attitude and worldview. in order to become a person, a person must develop psychologically, feel himself as a whole person, and differ from others with his characteristics and qualities. in the national model of personnel training, a person is defined as the main subject and object of the personnel training system, the consumer of educational services and their implementer. the state policy in the field of personnel training envisages the intellectual, spiritual and moral education of a person, and the achievement of his manifestation as a comprehensively developed person. the implementation of this social demand guarantees the right of every citizen to get knowledge, to show creative abilities, to develop intellectually and to work in a specific profession. personality development. in order for a person to become a person as a social being, social environment conditions and upbringing are necessary. under the influence of these, a person develops as a person and becomes a person. development is a complex process that expresses the essence of quantitative and qualitative changes manifested in the physiological and intellectual growth of a person. development essentially represents the transition from simple to complex, from bottom to top, from old qualities to new states, renewal, emergence of new, disappearance of old, change of quantity to change of quality. the source of its development is the struggle between opposites. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 69 www.americanjournal.org methods and results the development of a child's personality is based on the philosophical doctrine that a person is a social being. at the same time, a person is a living, biological being. therefore, the laws of nature's development are also important in its development. also, as a person is evaluated as a whole being, his development is influenced by biological and social laws together, they cannot be separated from each other. because a person's activity and lifestyle are affected by age, education, life experience, and other tragic situations and diseases. a person changes throughout his life. he matures both socially and psychologically, and if the upbringing given to the child is appropriate, he matures as a member of society and takes his rightful place in the complex system of social relations. because development is influenced by education. in order to correctly see the qualities of a person and make an accurate assessment, it is necessary to observe him in the course of various relationships. therefore, in order to correctly solve the task of personality development, it is necessary to know the factors affecting his behavior and personality characteristics. it is desirable to know and take into account the laws of growth and development in order for upbringing to have an effective effect on the child. thus, there is a two-way relationship between development and education. factors affecting personality development. in science, the debate on determining the relationship between the influence of biological and social factors on the development of a person as a person has been going on for a long time. is there a strong influence of social events on the development of a person as a person? or do natural factors play a leading role? maybe the influence of upbringing is high? what is the relationship between them? in science, the point of view called biological direction occupies one of the leading places, and its representatives, aristotle and plato, put natural and biological factors at the top. they say that innate abilities, fate, and destiny determine everyone's fate in life. the representatives of preformism, which arose in the philosophy of the 16th century, place a high value on the role of generation in the development of a person and deny the role of social environment and education. another trend in foreign psychology behaviorism appeared at the beginning of the 20th century. its representatives, it is said that consciousness and mental abilities are passed down from generation to generation and are given to man by nature. the representative of this doctrine is the american scientist e. thorndike. the stream of pragmatism and its representatives, d. dewey and a. combe, also base personality development from a biological point of view. they see development as only quantitative change. absolutizing the role of offspring, they consider it to be of decisive importance in human destiny. so, a group of foreign scientists attribute development to a biological (generational) factor. representatives of the philosophical current against the biological current define development with a social factor. the representatives of this current show that the physical and mental development of a child's personality depends on the environment in which he lives. the environment means all the external influences in the conditions in which a person lives. from this point of view, it is possible to adapt the child to the social conditions in which he lives due to education. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 70 www.americanjournal.org they consider the role of the social environment as a decisive factor. therefore, the development and progress of a human child as a person, and his maturation as a person, are equally important for the generation (biological factor), social environment (the conditions in which the child lives), as well as for the purposeful upbringing. in determining the influence of these factors, the teaching of advanced pedagogic scientists, psychologists and philosophers is relied upon. in philosophy, a person is considered as a complex reality in social life related to society. they believe that the spiritual wealth of an individual depends on his relationships. according to its research and educational function, the philosophical-anthropological approach is directed to the spiritual world of the student. that is why this approach, unlike other existing scientific or epistemological approaches in pedagogy, requires the organization of an educational process based on communication and mutual understanding. the uniqueness of this approach requires looking at all subjects of the educational process not only as a worldview, but also as a way of existence. this method of existence should be understood first of all as awareness of existence. secondly, it is desirable to clarify this mode of existence as a way of communication with oneself, others and other cultures. the influence of the social environment on a person is also important. this is done through education. first of all, under the influence of upbringing, knowledge and information that the environment could not provide, skills and competencies related to labor and technical activities are formed. secondly, due to education, congenital defects are also changed, and the person matures. thirdly, with the help of education, it is possible to eliminate the negative effects of the environment. fourthly, education sets a goal for the future. so, education and development affect each other, this education is continuous and continuous. thus, it can be concluded that education has a leading role in the development of a child's personality, and thanks to education, he is able to develop in all ways under the influence of his lineage, family environment, and social environment. four approaches to personality formation have been established in modern pedagogy: biological approach man is a natural being, and all his actions are the result of innate instincts and needs. a person is forced to obey the demands of society, and at the same time he shows his natural needs. social approach a person is born as a biological being, only during his life activity he is socialized under the influence of constant communication with others and social groups. psychological approach mental processes in a person (such as intuition, perception, thinking) have a natural description, a person's direction interests, abilities are considered a social phenomenon. holistic approach a person has a holistic description, and his development is influenced not only by the peculiarities of his activity, but also by his lifestyle. at the same time, the results of social life motives, goals, interests, etc. also play an important role in its development. in modern pedagogy, four biological, social, psychological and holistic approaches to personality formation have been established. anatomical, physiological (physical) and psychological characteristics characteristic of a certain age period are called age characteristics. education and upbringing work is organized taking into account these young characteristics. then the influence of education on the child's development will be strong. anatomical, physiological (physical) and psychological characteristics characteristic of a certain age period are called age characteristics. it is important to know and take into account the characteristics of american journal of business management, economics and banking volume 13 june, 2023 p a g e | 71 www.americanjournal.org different age periods in the child's development in order to have a correct approach to children's education and to teach him successfully. because the growth and development of the child's organism and mental development are different at different ages. abu ali ibn sina, john amos comenius, abdullah awlani also emphasized the need to educate a child. it is very difficult to take into account the unique characteristics of a child. because children of the same age can be mentally different. for example, vision and hearing, activity, quick perception, slow thinking, impetuousness or restraint, eloquence or lack of eloquence, vigor or lack of enthusiasm, laziness or industriousness, laziness and sloppy work, compactness or quickness to work. such as withdrawal are effects of the nervous system, and the teacher or educator must know them. in order to know the individual characteristics of the child, it is important to learn the general types of temperament and the characteristics of the child, to know the methodology. temperament (lat. "temperamentum" means "relation of parts to each other") is a set of individual psychological characteristics of a person. also, there are specific laws of development of different age periods. a child's physical and mental development is divided into the following periods: 1. the period of infancy is the period from the end of infancy (1 month) to the age of one year. 2. pre-kindergarten age from 1 to 3 years. 3. preschool age from 3 to 7 years. 4. pupils (children) of junior school age from 7 to 11-12 years old. 5. pupils of middle and high school age (teenagers, early teenagers) 12-17 years old. the process of socialization is complex in terms of its qualitative features, composition, laws, factors, conditions, management, and manifestation in a socialized person (his characteristics, qualities, peculiarities). for this reason, it reflects various cultural, moral, legal, labor, psychological manifestations of socialization, which are considered by various disciplines. when it comes to pedagogy, the process of socialization in this field is considered with special attention as a type of pedagogical socialization, taking into account the specificity of the subject, field and needs of pedagogy. it is the result of the process and emergence of socially defined and important pedagogical newly formed experiences upbringing, education, education and development, as well as their continuous change (improvement) throughout their future life. in this case, a passive approach to the individual is not observed, but he is a subject of social relations and the pedagogical system, who shows activity and independence in gaining experience and forms himself, and at the same time feels responsible for his own life path. considered as a subject. the task of pedagogy is to help a person become a thinking person, a socially active citizen, who understands his place and behavior in society, the direction of his desires and goals, together with pedagogues and the pedagogical system in society, to preserve and strengthen universal values. is to help him become a well-rounded person. there are the following general mechanisms of socialization: traditional attracting students to social activity through the family and close environment, creating favorable conditions for activity and communication; creation of necessary conditions and opportunities for the development of students by institutional social institutions and educational institutions; interpersonal involving students in the system of social relations, developing their communication skills; american journal of business management, economics and banking volume 13 june, 2023 p a g e | 72 www.americanjournal.org reflexive development of individual consciousness through pedagogical support of self-awareness, self-evaluation, self-design. there are the following general mechanisms of socialization: traditional, institutional, interpersonal, reflexive conclusion an important condition for the socialization of students is to establish social competence in them. social competence is expressed in establishing communication with other people, which requires a person's orientation to social situations and the ability to manage them. the main functions of social competence include adaptation, social orientation, personal integration and general social experience. social experience reflects the integral result description of student socialization and requires to be based on activity-oriented and axiological approaches. from the point of view of an activity-oriented approach, social experience reflects the set of spiritual and moral values and norms that arise as a result of the student's interaction with other people and the environment. for this reason, it is appropriate to consider the "experience of self-management" as a component of social experience, aimed at forming a culture of self-organization and self-correction in a person. involvement of an individual in subject-subject relations as the main social spheres of formation of self-management experience; formation of initiative in the subject; it is possible to include such things as accepting universal patterns of self-organization in the process of vital activity. from the point of view of the axiological approach, the formation of social experience in a person takes place in two interrelated directions. firstly, the formation of a value-oriented orientation in an individual as the meaning of human life, spiritual and moral standards and rules in interpersonal relations, and secondly, the behavior in the process of mutual activity, which is reflected in self-management with a high position from a personal point of view. actions reflect the connection with the acquisition of social and vital norms of behavior. directing students to self-management as a pedagogical phenomenon requires a combination of intellectual, emotional-emotional and activity-oriented areas related to the development of personal potential, and social activity of students based on the high level of development of creative abilities. references 1. history of pedagogy. the text of the report. manual part ii t., (edited by s. nishonova, b. hasanova) tdpu 2002. 2. chrestomatiya from the history of pedagogy (edited by o. hasanboyeva) t., teacher, 1973. 3. rajabov. s. great scholars of pedagogy. t. "teacher", 1990. 4. hasanov r. k. d. ushinsky. (help to preacher) t. mrdi 1999. 5. hoshimov k., nishonova s. history of pedagogy. study guide. t., a. novoiy uz. rep "national library" publishing house named after him, 2006. 6. khaidarov, s. a. (2021). the role of the use of fine arts in teaching the history of the country. international scientific and practical conference. cutting edge-science. in conference proceedings (pp. 41-43). 7. davrenov, j., & haydarov, s. (2021). xvi-xviii in learning the science of history the significance of japanese state history through the centuries. scientific progress, 1(6). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 73 www.americanjournal.org 8. narmatov, d., & haydarov, s. (2021). spain in history teaching history of the xv-xvii centuries. scientific progress, 1(6). 9. elguzarov, & haydarov, s. (2021). learning the science of history the place and significance of mitan's stateship. scientific progress, 1(6), 616-619. 10. erkinov, a. s. o., & haydarov, s. (2021). greece-bactria social structure, economy and culture of the kingdom. scientific progress, 1(6), 620-622. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 107 www.americanjournal.org economic reforms, formation of private ownership history of the development of market relations in uzbekistan nosirov rashod adilovich, ph.d., professor tashkent state transport university, svetlana vladimirovna temirova senior lecturer at the department of public international law, tashkent state transport university. a b s t r a c t k e y w o r d s the article analyzes fundamental reforms in all spheres of life of our society during the years of independence, market economy, production, exchange and money circulation laws, economic system, history of stages of transition to market economy. market economy, commodity production, exchange, law, history. introduction during the years of independence, radical reforms took place in all spheres of our society. based on the rich opportunities and geopolitical conditions of our republic, the issue of establishing an economy based on market relations in uzbekistan was defined as the most important task of the first days. market economy is an economic system that is organized and controlled based on the laws of commodity production, exchange and money circulation. such an economy is based on free commodity-money relations, based on the movement of goods and money in various forms, it rejects economic monopolies. market relations in the market economy cover the entire system, all its stages production, exchange, distribution and consumption processes and all subjects of economic relations. the transition to a market economy is not just a goal, but a way to form market relations in the economy, to renew society, that is, to achieve freedom of economic activity, diversity of ownership, price freedom, competition, determination of individual rights and freedoms, and unlimited income. only on the basis of market relations, it is possible to sustainably develop production, create many high-quality products, satisfy their demand, run an economic economy, create abundance, ensure the people's comfortable life, value the halo and effective work, and establish justice. since the market economy is a universal system, all countries follow this path. there are three ways of the process of transition to the market economy, namely: the first, the classical way; the second is the path of the countries of asia, africa and latin america, which have been freed from colonialism since the 60s of the 20th century; third, former socialist countries and former union republics. the need to transition from a highly centralized and centrally managed economy to a market economy in the former union republics, including uzbekistan, required the implementation of the following steps, american journal of business management, economics and banking volume 11 april, 2023 p a g e | 108 www.americanjournal.org in particular: first, economic liberalization, that is, the abolition of the state monopoly in the implementation of economic activities, the end of the centralized distribution of resources, the main price adjustment transition to formation based on the ratio of supply and demand; secondly, to free the economy from monopoly and create a competitive environment, that is, to create equal opportunities and conditions for the work activity of all economic agents, to allow foreign competitors to enter the market, to remove administrative obstacles that destroy business development, to support them by providing them with preferential loans, regulation of price and product sales policy of natural monopolies; thirdly, institutional changes, that is, changes in ownership relations, including the creation of the private sector, the formation of market infrastructure, the creation of a new system of state regulation of the economy, the creation of economic legislation that matches market conditions; fourthly, structural changes, that is, in the structure of the economy and its individual branches, alleviating or eliminating the remaining imbalances from the previous system, developing the production of products that have a demand for payment in the domestic and foreign markets; fifth, macroeconomic, mainly financial stabilization, that is, limiting money emission, reducing the state budget deficit, ensuring a positive interest rate; sixthly, the formation of a system of social protection of the population that is compatible with the market economy, that is, specific social support for the relatively needy segment of the population. world experience shows that it is possible to transition to a market economy in a revolutionary way, that is, in an accelerated way, or in an evolutionary way, that is, step by step. in the first case, it is required to carry out fundamental reforms, to break the previous system and economic relations once and for all. by gradually transforming the old economic relations into new market relations, it is possible to create an effective market economy without damage. the experience of reforms shows that the evolutionary path leads to less social upheavals, is more consistent and inevitable. conclusion in uzbekistan, taking into account its unique cultural, historical, economic and natural characteristics, as well as the world experience in this way, without revolutionary coups, without social conflicts, and with the strengthening of social protection, the path of transition to a gradually developed market economy was chosen. references 1. national encyclopedia of uzbekistan. 9 vol. t.: ume, 2005. -b. 127; 366; 429; 490. 2. r nosirov, g mamajanova. international ratings and index indicators of the republic of uzbekistan// european multidisciplinary journal of modern science, 2022 3. ra nosirov, mi rakhimova, sv temirova. change of social consciousness in society-analysis of social relations. // innovation and pedagogy and psychology, 2022. 4. n.r. nasirov. the strategic value of education for the development of science and training of promising personnel potential, 2022 5. r. a. nasirov. educational problems in the history of central asia// innovative technologica: methodical research journal, 2021 6. n.r. nasirov. structural and functional approaches to the development of the social sector: reform and prospects// european journal of molecular and american journal of business management, economics and banking volume 11 april, 2023 p a g e | 109 www.americanjournal.org 7. nosirov, r. o., & temirova, s. v. (2022). strengthening the health of our people is the priority direction of our state policy. academic research in educational sciences, 3(tstu conference 2), 242-248. 8. adilovich, nasirov rashod. "the strategic value of education for the development of science and training of promising personnel potential." (2022): 183-186. 9. nosirov r. the place and role of the master amir temur in world history //uzbek scholar journal. 2022. t. 9. s. 203-205. 10. nosirov, r., & mamajanova, g. (2022). international ratings and index indicators of the republic of uzbekistan. european multidisciplinary journal of modern science, 4, 86-88. 11. nosyrov, rashod adilovich, mashhura inomjanovna rakhimova, and svetlana vladimirovna temirova. "changes in social consciousness in society-an analysis of social relations." innovation and pedagogy and psychology 5.3 (2022). 12. 1 nosirov rashod, and yuldashev bakhtiyar ergashevich. "structural and functional approaches to the development of the social sector: reform and prospects." european journal of molecular and clinical medicine 8.1 (2021): 1388-1396. 13. umarova, r. sh. (2019). bytie i filosofskie vzglyady abu raykhana beruni. dostigeniya nauki i obrazovaniya, (3 (44)), 32-33. 14. umarova, r. sh. (2019). basic spiritual and moral education of youth and work abu raykhana beruni. problemy nauki, (4 (40)), 56-57. 15. umarova, r. sh. (2020). natural philosophy abu raykhana biruni. vestnik science and education, (4-1 (82)), 35-37. 16. umarova, r. s. (2019). fundamentals of spiritual and moral education of youth in the works of abu rayhan beruni. problems of science, no. 4 (40). 17. dadasheva, a. a. (2022). public opinion and government evaluation in new uzbekistan. the american journal of interdisciplinary innovations research, 4(01), 16-19. 18. inagamova m.m. cooperation of internal affairs bodies with civil society institutions in the protection of women's rights // philosophy and law social-political, spiritual-educational, philosophical-legal journal. #1. -t.: 2020. -b. 64-68. 19. dadasheva a.a. vzaimodeystvie organov predstavitetelnoy vlasti na mestax i samanuprulenii obshchestvennogo kontrolya. //grajdanskoe obshchestvo. civil society. civil society //. #2. 7075 -b; 2021 20. akida abduzhabbarovna dadasheva. (2022). public opinion and government evaluation in new uzbekistan. the american journal of interdisciplinary innovations research, 4(01), 16–19. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 34 www.americanjournal.org the need to increase the independence of local budgets in uzbekistan sharapova mashkhura azadovna associate professor of “finance” department of tashkent institute of finance, phd. e-mail: sharapovamash@mail.ru a b s t r a c t k e y w o r d s this article highlights ways to strengthen the revenue base of local budgets while ensuring their independence, the distribution of budget revenues, including taxes, between the republican and local budgets while ensuring their independence, the distribution of budget revenues, including taxes, between the republican and local budgets while ensuring the sustainability of local budgets. local budgets, independence of local budgets, revenues of local budgets, tax revenues, interbudgetary distribution of budget transfers. introduction: as part of the economic reforms implemented in the country, special attention is paid to the issues of ensuring the independence of local budgets, including further increasing the importance of local budgets in the socio-economic development of regions, and strengthening the income bases of local budgets. at least 5 percent of the budget of each district in the direction of the "strategy of actions on five priority areas of development of the republic of uzbekistan in 2017-2021" dedicated to the rapid development of the national economy and ensuring high growth rates it is decided to spend 100% of the budget on solving the most urgent problems based on the proposals of the population within the framework of the "citizens' budget" program [1]. in 2023, the president of the republic of uzbekistan, sh. mirziyoyev, paid special attention to increasing financial independence in solving the problems of the regions. for this purpose, starting from january 1 in the new year, a part of property and land taxes will remain with the neighborhood itself [2]. 2. literature review the state budget is a financial instrument that ensures timely and complete fulfillment of a number of social and economic tasks of the state, and is mainly made up of taxable and non-taxable incomes. state budget revenues are part of the centralized financial resources of the state, which serve to perform state functions. state budget revenues represent the financial relations that arise in the process of formation of monetary funds, and form local budgets at the discretion of various levels of authorities. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 35 www.americanjournal.org professor sh.a. tashmatov recognized that the system of distribution of budget revenues between budgets of different levels serves to ensure the interest of local authorities in maximizing tax revenues, the need to improve this process, as well as the assessment of territorial tax potential and the mechanism of local tax collection [3]. as for the independence of local budgets, economist a.kh. islamkulov emphasizes that it is necessary to clearly define the powers of the central and local state authorities in the financial-budgetary, budgettax spheres, and the optimal distribution of income based on expenditure obligations between budget levels serves to ensure the stability of local budgets [4]. in turn, the economist q.a. usmanov paid attention to the formation of a sufficient and high-quality database necessary for budget revenue planning in the country, as well as the revision of legal documents in this regard and the issues of budget revenue planning [5]. 3. analysis and discussion of results according to the budget code of the republic of uzbekistan, the revenues of the budget of the republic of karakalpakstan, the local budgets of regions and the city of tashkent consist of the following [6]: 1) in accordance with the established regulations: • profit tax; • income tax from individuals; • excise tax; • tax on the use of the subsoil (excluding the tax on the use of the subsoil for construction materials). 2) tax for the use of water resources; 3) property tax; 4) land tax; 5) subsoil use tax for construction materials; 6) turnover tax; 7) non-refundable cash receipts from legal entities and individuals, as well as from foreign countries; 8) fee for the purchase and (or) temporary importation of motor vehicles into the territory of the republic of uzbekistan; 9) is formed at the expense of other incomes. other income includes proceeds from the sale of property transferred to the budget of the republic of karakalpakstan, the local budgets of the regions and the city of tashkent in accordance with the legislation, income from the placement, use and sale of state assets according to established regulations, state duties includes dividends (income) on the share of authorities and other income in accordance with the law. over the past five years, special attention has been paid to ensuring the independence of local budgets, strengthening the revenue base, and financial decentralization. the change of authority over certain expenses, i.e. the financing of expenses of groups 1 and 2 of catering establishments, which were previously part of local budget expenses, from the republican budget led to a change in the share of income and expenses of local budgets in the state budget (table 1). american journal of business management, economics and banking volume 13 june, 2023 p a g e | 36 www.americanjournal.org table 1. in 2020-2022, the share of local budget revenues in the structure of state budget revenues [7], bln. soum revenues 2020 year 2021 year 2022 year state budget local budget state budget local budget state budget local budget sum % sum % sum % i. total revenue: 132938 34751,9 26,1 147202 26970,3 18,3 200000 37412,2 18,7 1. direct taxes 45207 20019,8 44,3 46845,2 14329,7 30,6 68511 18988,5 27,7 1.1 profit tax 28712 8873 30,9 27779,4 1714,6 6,17 43737,7 3108,6 7,11 1.2 turnover tax 1353,9 1353,9 100 2160 2160 100 2728,3 2728,3 100 1.3 income tax from individuals 15141 9792,8 64,7 16905,8 10455 61,8 22045 13151,6 59,7 2. indirect taxes 46428 6077,8 13,1 62526,7 2380,8 3,81 73164,9 3349,8 4,58 2.1 value added tax 31177 0 0 46955,4 0 0 53300 0 0 2.2 excise tax 11697 5235,8 44,8 11820,1 2380,8 20,1 15038,3 3349,7 22,3 2.3 customs duty 3553,7 0 0 3751,2 0 0 4826,6 0 0 3. resource fees and property taxes 21257 5916,8 27,8 19426,8 6506,9 33,5 25690,4 8980,6 35 3.1 property tax 1974,3 1974,3 100 2510,3 2510,3 100 3217,7 3217,7 100 3.2 land tax 2386,7 2386,7 100 2941 2941 100 4119,8 4119,8 100 3.3 subsoil use tax 16417 1076,8 6,6 13588,2 668,3 4,92 17352,9 643,1 3,71 3.4 tax for use of water resources 478,8 478,8 100 387,3 387,3 100 1000 1000 100 4. other income (and non-tax income) 20046 14606,9 72,9 18403,6 3753,2 20,4 32633,7 28185,7 86,4 in the analyzed period, the share of local budget revenues in the state budget revenues is 31.3 percent in 2019 and 21.6 percent in 2022. on the one hand, this situation shows that local budget revenues are not proportionate to expenses, and on the other hand, it indicates that the country is giving priority to the development of the social sphere. in turn, according to the budget legislation, local budgets are not allowed to end the financial year with a deficit. in this regard, the deficit of local budgets is covered through financial transfers. the distribution of taxes between the republican and local budgets is carried out in accordance with the powers of the budgets to realize income and expenses. (table 2). table 2. peculiarities of local budget revenue formation for 2022 [7] budget levels tax types it will be transferred to the district and city budgets in full • property tax collected from individuals; • land tax collected from individuals; • taxes paid on the basis of a declaration on the income received from the rental of property by individuals, as well as income tax from individuals paid by individual entrepreneurs; • tax for the use of water resources, excluding the tax paid by power plants; • tax on the use of land for construction materials. the following are fully transferred to the republican budget of the republic of karakalpakstan, the regional budgets of • tax imposed on property of legal entities; • land tax collected from legal entities; • tax for the use of water resources paid by power plants; • excise tax on sales of gasoline, diesel fuel and gas to final consumers; american journal of business management, economics and banking volume 13 june, 2023 p a g e | 37 www.americanjournal.org the regions and the city budget of the city of tashkent • turnover tax; • state duties in amounts determined by legislation (except for patent duties and state duties for issuing licenses); • fines charged to the state budget of the republic of uzbekistan in the amounts determined by legislation; • fees for the right to retail trade of certain types of goods; • other fees charged to the state budget of the republic of uzbekistan in the amounts specified by legislation; • receipts from the sale of property transferred to the state income in the amounts specified by the legislation, dividends (income) and allocations according to the share of local state authorities; • income received from placement, use (leasing) and sale of state assets in accordance with the regulations established by the law. it is transferred to the republican budget of the republic of karakalpakstan, the regional budgets of the regions and the city budget of the city of tashkent in the specified shares. • income tax from individuals (63 percent in navoi region, 42 percent in tashkent region, 5 percent in tashkent city, 100 percent in the republic of karakalpakstan and other regions) • revenue from profit tax (63 percent in navoi region, 40 percent in tashkent region, 5 percent in tashkent city, 100 percent in the republic of karakalpakstan and other regions). despite the implementation of measures aimed at ensuring the independence of local budgets, some regions do not have the opportunity to cover their expenses with their income. according to the legislation of the country, inter-budgetary transfers allocated from the republican budget of the republic of uzbekistan are the revenues of the republican budget of the republic of karakalpakstan, regional budgets of the regions and the budget of the city of tashkent. table 3. republic of karakalpakstan for 2020-2022 budget, regions and tashkent city local share of social transfers in budget revenues, in % [8] № the name of the regions regulatory interbudgetary transfers 2020 year 2021 year 2022 year 1. republic of karakalpakstan 0 44,6 39,2 2. andijan region 22,0 27,2 35,5 3. bukhara region 0 18,5 13,2 4. jizzakh region 29,9 28,8 32,3 5. kashkadarya region 20,5 38,03 37,1 6. navoi region 0 0 0 7. namangan region 32,7 39,5 37,0 8 samarkand region 10,6 29,3 20,3 9. surkhandarya region 32,5 42,4 44,6 10. syrdarya region 31,4 41,8 37,9 11. tashkent region 0 0 0 12. fergana region 10,5 23,9 24,5 13. khorezm region 24,6 30,5 27,6 14. tashkent city 0 0 0 total 14,5 26,0 24,7 from the above data, we can see that all regions, except tashkent city, navoi and tashkent regions, finance their expenses through social transfers. in order to bring the state financial management system to a new level and further strengthen the budget discipline, increase the transparency of the tax-budget system, increase the efficiency and effectiveness american journal of business management, economics and banking volume 13 june, 2023 p a g e | 38 www.americanjournal.org of the use of the funds of the state budget of the republic of uzbekistan, and introduce modern methods of planning the state budget for the medium-term period. the "strategy for improving the public finance management system of the republic of uzbekistan in 2020-2024" of the cabinet of ministers of the republic of uzbekistan was approved [9]. in this document, special attention was paid to the issue of allocation of obligations between the levels of the state budget. in order to ensure a more rational and efficient system of public finance management, it is necessary to improve the inter-budgetary relations between the budgets of the budget system, which envisage a clear separation of the expenditure obligations of each of them and strengthening the sources of income. the only way to calculate and allocate the amount of inter-budget transfers and the introduction of a transparent methodology was determined. 4. conclusions and suggestions the growing importance of local budgets in the socio-economic development of the country makes it necessary to increase their independence. despite the implementation of policies related to ensuring inter-budget balance and increasing the responsibility of local governments, the share of revenues at the disposal of local budgets remains low. the development of inter-budget relations, the rational distribution of income between budgets is reflected not only in the state of the budget system, but also in the indicators of the population's standard of living and economic and social development of local governments. despite the decrease in tax rates, the amount of local budget revenues is increasing, and the share of local taxes and fees in its composition has increased compared to previous years, but it is not enough to cover the costs of local budgets. therefore, when distributing taxes between budgets, it is necessary to take into account the costs of local budgets. literatura/reference: 1. law of the republic of uzbekistan "on the state budget of the republic of uzbekistan for 2022" orq-742, 30.12.2021. 2. decree of the president of the republic of uzbekistan dated january 28, 2022 "on the new development strategy of uzbekistan for 2022-2026" no. pf-60 3. resolution no. 506 of the cabinet of ministers of the republic of uzbekistan dated august 24, 2020 "on approval of the strategy for improving the state finance management system of the republic of uzbekistan in 2020-2024" 4. address of the president of the republic of uzbekistan sh. mirziyoyev to the oliy majlis https://review.uz/oz 5. toshmatov sh.a. iqtisodiyotni rivojlantirish va liberallashtirishda davlat byudjeti daromadlari manbalarini kengaytirish yoʼnalishlari // oʼzbekistonda moliya sektorini rivojlantirishning ustuvor yoʼnalishlari. respublika ilmiy-amaliy anjumani materiallari toʼplami. 2017 yil 10 noyabr. –t.: tdiu, 2017. -b.27-28. 6. islamkulov a.k. mahalliy byudjetlar daromadlari barqarorligini taʼminlash masalalari // “iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. № 4, iyul-avgust, 2016 yil. https://review.uz/oz american journal of business management, economics and banking volume 13 june, 2023 p a g e | 39 www.americanjournal.org 7. usmonov q.a. byudjet daromadlarini rejalashtirish jarayoni, usullari va ularni takomillashtirish yoʼnalishlari // “iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. № 4, iyul-avgust, 2014 yil 8. sharapova, m. a., & ergasheva, s. (2022). byudjet daromadlarini byudjetlararo oqilona taqsimlash yo’llari. science and education, 3(5), 1782-1792. 9. исмаилова н. к. обеспечение бюджетно-налоговой безопасности-залог безопасности национальной экономики //экономика и бизнес: теория и практика. – 2018. – №. 1. – с. 5053. 10. жиянова н.э., ташматова р.г. пути увеличения доходного бюджета разных уровней республики узбекистан// science and education, 2 (5), (2021г.) 11. нуритдинова в.ш. пути повышения доходов местных бюджетов республики узбекистан «интернаука»: научный журнал – № 3(226). часть 2. москва, изд. «интернаука», 2022. – 4648 стр. 12. www.mf.uz information from the official website of the ministry of finance of the republic of uzbekistan. http://www.mf.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 36 www.americanjournal.org use of machine learning methods in forecasting indicators of fiscal and monetary policy coordination for the economy of uzbekistan hakimov hakimjon1 1researcher of tashkent state university of economics, 49 islam karimov avenue, tashkent, 100066, uzbekistan. a b s t r a c t k e y w o r d s this paper proposes a new type of solution for uzbekistan economy using several machine learning methods: lasso, ridge, random forest, gradient boosting and artificial neural networks. this paper is one of the first attempts to apply machine learning methods to the macroeconomic forecasting in uzbekistan. the main result of this paper is the confirmation of the possibility of more accurate forecasting of economic indicators in uzbekistan using machine learning methods. macroeconomic indicators, arma, rmse, lasso, economic activity, random forest. introduction this can be explained by the fact that there is a large number of works on forecasting various macroeconomic indicators among economists. econometrics, a separate branch of economics that deals with such economic forecasts, has developed its own traditional methods for the development of these forecasts. with the help of these methods, various indicators of the economy can be efficiently and accurately forecasted. by the beginning of the 21st century, in economic forecasting, together with econometric models, the practice of forecasting with the help of computer artificial intelligence began. such methods of forecasting through artificial intelligence are called “machine learning” in a broad sense. “machine learning” is one of the hottest topics today. although terms such as “artificial intelligence” (ai) and “big data”, which are constantly heard in various literature and news, are considered as technologies of the distant future, their true meaning is much closer to everyday life. currently, machine learning is used in various fields. in particular, it is used to filter e-mail as spam, to recommend the necessary services and goods to the user, to forecast future demand, and even in autonomous (self-driving) cars. in a broad sense, it can be said that machine learning is the determination of the computer's future actions based on current data without specific programs. autonomous machines work in this way: the machine receives information from its surroundings, analyzes them and makes further decisions based on this information. there are many ml algorithms for performing these tasks. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 37 www.americanjournal.org currently, the issue of correct forecasting of macroeconomic indicators is one of the problems faced by economists all over the world. this problem is also actual for the economy of uzbekistan, and great attention is being paid to forecasting these indicators. the use of ml (machine learning) methods in forecasting macro indicators has been used since the beginning of the 21st century, and these methods are several times superior to traditional econometric models. the purpose of this work is to apply the use of ml methods in the forecasting of macroeconomic indicators for the economy of uzbekistan. despite the fact that these methods have become the subject of research for economists all over the world, the author did not find any scientific works showing their application in uzbekistan. the scientific importance of this topic is based not only on the fact that it is an absolutely new topic for the economy of uzbekistan, but also on the fact that the issue of using ml methods for forecasting time series in the economy is one of the interesting topics for economists all over the world. in general, in world practice, this topic began to be covered only at the beginning of 2000s, while the period of coverage of some models covered in the work goes back to 2010s. that is, the history of this topic is not so long and the topic has not been studied enough during this period. ii. literature review many scientific works of foreign researchers have been written on the topic of using machine learning methods in forecasting macroeconomic indicators. the research of stock and watson (2008) is devoted to inflation forecasting, and stock and watson (2008) divide and analyze different models into four main groups [1]. the first group is based on the use of only inflation time series: arma, rw and the authors' own unobserved components and stochastic volatility model (unobserved components stochastic volatility, uc-sv) models are included. the second group includes models whose variables are economic activity, such as unemployment and interruptions in production. the third models are based on surveys of professional forecasters. the fourth group includes models that do not have variables not included in the second group. the models make pseudo-real time forecasts for a 10-year period based on quarterly data. root mean square error (rmse) is used to evaluate the model. the conclusion was that models using only time series of inflation do not lag behind multivariable models. taking into account the difficulties in creating multivariable models, the authors conclude that univariate models are preferable. the article by faust and wright (2013) is also devoted to inflation forecasting [2]. the authors compare 17 different ml models. among them "random walk", autoregression methods (ar (1) and ar (p)), a model based on the phillips curve, structured vector autoregression (svar), bayesian averages model (bma) ), there is a dynamic stochastic model of general equilibrium (dynamic stochastic general equilibrium, dsge) and others. the authors evaluate the models using root mean square deviation (rmse). in this case, the ar (1) model is taken as a benchmark, and all models are evaluated against this model. the model based on the opinion of professional forecasters wins as the best model. however, this study also proved that the best multi-factor models of the above study do not outperform the best one-factor models. russian researchers fokin and polbin (2019) use the var-lasso model in the forecast of macroeconomic indicators and make forecasts for the russian economy for 2019-2024 [3]. they compare var-lasso model with bvar (bayesian vector autoregression), var, arima american journal of business management, economics and banking volume 20 january, 2024 p a g e | 38 www.americanjournal.org methods and show the superiority of their model. their pseudo-real-time forecasts for 2016-2018 use the rmse (root mean square deviation) indicator in comparison with the forecasts of the russian ministry of economic development and the international monetary fund. the peculiarity of this work is that they can add the slowdown of the russian economy to the model as a structural change, thereby increasing the accuracy of the model. generally speaking, the use of machine learning methods in forecasting macroeconomic indicators is an urgent issue not only for the economy of uzbekistan, but also for the economy of developed countries. due to this, the number of scientific articles on this topic is increasing rapidly. iii. data and methodology. 1. regularization models we have discussed above what is the biggest problem of the models created for forecasting although the model shows a low error result within the sample, it is not suitable for forecasting outside the sample. this problem is called "overfitting". that is, the model excessively “reads” on the basis of assimilation of information that is specific to the data it sees in the sample, but is not available in general economic processes. theoretically, it is possible to create a model that reduces the sampling error to less than 1%, but the question of using this model in forecasting remains open. to solve this problem, a regularizer is added to the simple linear regression equation, which regulates the excessive “learning” of the model. in a general sense, this regularizer has the following formula [4]: 𝑅(𝑥) = 𝛾 ∑ |𝑥𝑖| 𝑞 𝑖=1 + (1 − 𝛾) ∑ 𝑥𝑖 2𝑞 𝑖=1 (1) where, r(x) is a linear regression equation, 𝛾 ∈ [0; 1], q is the number of x parameters. when 𝛾 ∈ (0; 1) is in the above regularizer, this model is called elastic net. in case 𝛾 = 1, this model is called lasso (least absolute shrinkage and selection operator). the case where 𝛾 = 0 is called ridge regression. their equations can be shown as follows [5]: 𝑦(�̂�) = ∑ (𝑌 − 𝑋�̂�) 2 + 𝜆 ∑ |𝛽�̂�|𝑝 𝑗=1 𝑛 𝑖=1 → 𝑚𝑖𝑛 (2) the above formula is the formula for lasso regression. although ridge regression is similar to lasso, it is slightly different from it [6]. �̂� = ∑ (𝑌 − 𝑋�̂�) 2 + 𝜆 ∑ (𝛽�̂�)2𝑝 𝑗=1 𝑛 𝑖=1 → 𝑚𝑖𝑛 (3) the elastic net model is created by adding the above two models [7]: �̂� = ∑ (𝑌 − 𝑋�̂�) 2 + 𝜆 ∑ [(1 − 𝛼)(𝛽�̂�) 2 + 𝛼|𝛽�̂�|]𝑝 𝑗=1 𝑛 𝑖=1 → 𝑚𝑖𝑛 (10) through the regularizer 𝜆 in the equation, a special “penalty” is applied when the model deviates from the general laws and adapts to the selection. there are several methods of choosing this penalty factor. first, akaike and bayesian information criteria (aic and bic) or cross-validation, widely used in ml, are used. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 39 www.americanjournal.org the main difference between lasso and ridge regression is based on the fact that the possibility of “penalizing” the parameters of the equation is different. in lasso regression, indicators with a low level of statistical significance can be completely excluded from the model, and in ridge, even if their parameters are reduced, they will never be equal to zero. 2. machine learning methods the decision tree method1, which is considered one of the pure ml methods, is mainly used in classification problems (that is, grouping different indicators according to their sign), but the method is also used for regression. based on the elements of graph theory, the decision tree divides the selection into two or more parts at each stage based on certain criteria. decision trees have several serious drawbacks, including the above-mentioned “overfitting” problem of the model. theoretically, it is possible to build a decision tree in such a way that there is no error at all in the sample data. to prevent this problem, the depth of the tree, that is, the maximum number of its “branches”, is determined. the second way to deal with overfitting is to create an “ensemble” from several decision trees. ensemble methods are one of the most important parts of ml. usually, ensemble methods are weighted according to the accuracy of other methods and determine their average. this eliminates the problem of overfitting and allows to increase the level of accuracy of the model. random forest (rf) allows you to create an ensemble from different decision trees [8]. the rf model builds decision trees based on data randomly selected from the sample. the number of decision trees in rf can be unlimited. although the increase in their number increases the accuracy of the model, it also increases the time for calculation. each decision tree is checked for accuracy on data outside of the random sample. more specific trees are given greater weight and average values from all of them are considered correct. boosting is another ensemble method, although it can be built from any family of models, in this work, busting is built from decision trees [9]. the difference between the busting method and the random forest is that the decision trees are not built independently of each other, instead, each decision tree is built taking into account the errors of the previous model. the structure of boosting is as follows [10]: 1. an initial decision tree is constructed over the entire sample. its main task is to reduce the difference between the constructed model and real indicators. 𝑏1(𝑥) = ∑ (𝑦𝑖 − 𝑏(𝑥)) 2𝑚 𝑖=1 → 𝑚𝑖𝑛 (4) 2. the result of the first step is taken as a base model: 𝐵1(𝑥) = 𝑏1(𝑥) (5) 3. based on the basic model, errors are calculated: 𝑒𝑖 1 = 𝑦𝑖 − 𝐵1(𝑥) (6) 4. the second model is created taking into account these errors: 𝑏2(𝑥) = ∑ (𝑏(𝑥𝑖) − 𝑒𝑖 1)2 → 𝑚𝑖𝑛𝑚 𝑖=1 (7) 5. the new result is added to the previously obtained base model with a certain coefficient 𝛾 ∈ (0; 1] . in this work, the value 𝛾 = 0,2 was obtained. it is important to choose its value correctly. the new model looks like this will have: 1 note: in some sources it is also translated as “solution tree”. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 40 www.americanjournal.org 𝐵2(𝑥) = 𝐵1(𝑥) + 𝛾𝑏2(𝑥) (8) 6. this sequence of operations is repeated up to a predetermined n value, and the final model will look like this: 𝐵𝑛(𝑥) = ∑ 𝛾𝑖−1𝑏𝑖(𝑥)𝑛 𝑖=1 (9) the higher the number of iterations n in the busting model, the higher the accuracy of the model. artificial neural networks are considered one of the first ml methods and try to replicate the learning of the human brain. in its simplified version, the given information is transmitted through neurons and is based on achieving the final result [11]. the transfer of 𝑥1, 𝑥2 and 𝑥3 in the simplest form through neural networks can be seen in the picture below. in this case, the vertices of the graph are called "neurons". these neurons work like neurons in the human brain information is transmitted between them. unlike simple econometric models, neural networks do not depend on predetermined patterns. on the contrary, artificial neural networks can be compared to a small child the model also learns step by step. for this, one indicator is taken as the main benchmark. in our model, the mean square deviation is the basis for learning the model. that is, the model tries to reduce the degree of deviation by transferring different quantities from the neurons. the parts of neural networks between the input point and the final output are called “layers”. the higher the number of these layers, the higher the level of accuracy. but this complicates the calculation process. iv. analysis and results the necessary information for forecasting macroeconomic indicators has a monthly, quarterly and annual frequency. in this case, if the inflation calculated by the consumer price index and the exchange rate of the uzs against the us dollar consists of monthly data from january 2000 to december 2019, gdp, unemployment rate, central bank refinancing rate, in a broad sense, the money supply, the real interest rate consists of data collected at annual and quarterly intervals. table 1 data used in the model2 variable unit of measure designation source gross domestic product (at current prices) billion soums gdp state statistics committee consumer price index % cpi state statistics committee unemployment % unemployment 2009-2019: dsq, 2000-2009: tradingeconomics.com gdp deflator % deflator asian development bank money supply billion soum m2 asian development bank foreign trade balance million dollars fortrade 2000-2015: otb, 2016-2019: dsq the exchange rate of the us dollar against the soum3 soum usd norma.uz average salary soum wage state statistics committee 2 note: these indicators were used in the model in logarithmic form 3 note: to eliminate the effect of devaluation, the data until september 2017 was doubled. this soum was considered close to the market rate at that time american journal of business management, economics and banking volume 20 january, 2024 p a g e | 41 www.americanjournal.org these data were used to construct multivariable models, including ml methods. the data in table 1 were selected for their high importance in the model. data processing is one of the most important issues in improving the accuracy of the model. in this case, the main method is to bring non-stationary (non-permanent) data into a stationary (permanent) form. the fact that economic processes do not change their characteristics over time is classified as a state of stationarity. in econometrics, data stationarity means that their average and dispersion indicators do not change. figure 1. dynamics of change of the main macroeconomic indicators4. figure 1 shows the dynamics of the main macroeconomic indicators. their dynamics will change until these data are brought to a stationary state for the purpose of forecasting. the ols (method of least squares) model was chosen as a benchmark model among econometric models for forecasting the gdp growth rate, that is, a model used to compare the accuracy of other models. table 2 evaluation of gdp growth rate forecasting models5 indicator boosting random forest lasso ridge var ols mae 0.5 1.41 1.61 1.79 2.38 3.64 mse 0.367 2.16 4.427 3.825 6.073 17.168 accuracy% 91.10% 72.92% 71.12% 67.61% 56.40% 32.40% 4 author development 5 formed by the author american journal of business management, economics and banking volume 20 january, 2024 p a g e | 42 www.americanjournal.org in assessing the accuracy of gdp growth rate forecasting models, the indicators of the last four years (2016-2019) were evaluated. ml models boosting and random forest outperform traditional econometric models by all indicators of accuracy assessment. among the linear models, the lasso model shows higher accuracy than ordinary least squares and ridge regression. ridge regression outperforms lasso only in terms of mse. given the larger “penalty” of mse for larger errors, lasso has difficulty estimating unexpected changes. another peculiarity of lasso the ability to select variables was achieved in this process. lasso chose to leave only 6 out of 8 variables in the model. figure 2. comparison of boosting and random forest model forecasts with real indicators6 the boosting and rf models generally put their predictions slightly higher than the actual figures. the average boosting model is wrong by 0.5 percentage points (mae=0.5). it is worth noting that the forecasts for 2019 are equal to the actual indicators. figure 3. comparison of lasso and ridge regression forecasts to actual indicators7 6 formed by the author 7 formed by the author american journal of business management, economics and banking volume 20 january, 2024 p a g e | 43 www.americanjournal.org comparing the lasso and ridge regression forecasts with the actual figures, it can be seen that the models are on average 1.61 and 1.79 percentage points wrong each year, respectively. one of the reasons for recording such an indicator is that in 2019, both models abnormally predicted the economic growth indicator at a much lower level than the actual one. because of this, it negatively affected the accuracy of the models. when creating the var model, lags of indicators 1 year ago were taken into account. in this case, the main reason is that economic indicators do not immediately affect the gdp growth rate. the fact that the var (1) model did not show such a good result is explained by the extreme sensitivity of this model to the quality of data. some deficiencies in the quality of data generated for the economy of uzbekistan directly affected the quality of the model. v. conclusions and suggestions machine learning methods, which are now popular all over the world, are showing themselves in a positive way in forecasting the indicators of uzbekistan's economy. the following conclusions are drawn from this work: 1. random forest and boosting methods demonstrate the extent to which machine learning can be used in economic sectors today. although these models were not originally created for modeling time series, their flexibility, i.e. universality, for every field shows that they can be used in the forecast of macroeconomic indicators. 2. even if the application of neural networks did not give a satisfactory result in the forecast of the level of inflation in uzbekistan, the potential of this model is great. taking into account the fact that thousands of articles in various publications are devoted to this topic every year in the international scientific community, the implementation of neural networks and, in a broad sense, “deep learning” algorithms becomes one of the most urgent issues. the current unsatisfactory results are explained by the insufficient number of observations for the algorithm, the author's insufficient knowledge and experience in the field, and the unavailability of calculation capabilities. generally speaking, the application of machine learning in various areas of the economy is one of the important parts of the fourth industrial revolution, the “digital economy”, which are currently current topics. researching the issues of applying these methods for the economy of uzbekistan will help to increase the competitiveness of the country's economy, to adapt to the changes of the new era more quickly, and to increase the accuracy of future forecasts. based on these results, the following conclusions are drawn regarding the improvement of the forecasting accuracy of macroeconomic indicators, in particular, inflation rates calculated through the consumer price index in uzbekistan: • consider the issue of using machine learning methods in forecasting; • implementation of foreign experience in the use of artificial neural network methods in the economy of uzbekistan; by applying these recommendations, uzbekistan will have the opportunity to increase the accuracy of forecasting macroeconomic indicators and quickly respond to various economic processes. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 44 www.americanjournal.org references 1. phillips curve inflation forecasts james h. stock, mark w. watson nber working paper no. 14322 september 2008 2. inflation forecasting; faust, jon; jonathan h. wright; handbook of forecasting, 2:a, 2013, g. elliott and a. timmermann eds., 2013, 2-56..) 3. fokin, n. and polbin, a. (2019). forecasting russia's key macroeconomic indicators with the var-lasso model. russian journal of money and finance, 78(2), pp. 67–93. 4. baybuza, i. (2018). infation forecasting using machine learning methods. russian journal of money and finance, 77(4), pp. 42–59. 5. tibshirani, robert (1996). “regression shrinkage and selection via the lasso”. journal of the royal statistical society. series b (methodological). wiley. 58 (1): 267–88. 6. http://scikit-learn.org/stable/modules/generated/sklearn.linear_model.ridge.html (25/01/2020) 7. https://scikit-learn.org/stable/modules/linear_model.html (25/01/2020) 8. breiman, l. (2001). random forests. machine learning, 45(1), pp. 5–32. 9. friedman, j. h. (2000). greedy function approximation: a gradient boosting machine. te annals of statistics, 29(5), pp. 1189–1232. 10. baybuza, i. (2018). infation forecasting using machine learning methods. russian journal of money and finance, 77(4), pp. 42–59. 11. https://www.digitaltrends.com/cool-tech/what-is-an-artificial-neural-network/ . https://www.digitaltrends.com/cool-tech/what-is-an-artificial-neural-network/ american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 56 www.americanjournal.org psixolingvistikada ma’no va mazmun muammolari boboyev yusuf beknazarovich toshkent davlat agrar universiteti “o`zbek tili va adabiyoti” kafedrasi o`qituvchisi a b s t r a c t k e y w o r d s ushbu maqola psixolingvistikada til va so‘z ma’nosi, komponent tahlil, so‘z ma’nosining semantik komponentlarga bo‘linishi haqida so‘z yuritiladi. ma’no, psixolingvistika, aspekt, denototiv tahlil, component tahlil, termin. ma’no – bu til nazariyasidagi eng noma’lum va ziddiyatli tushunchalardan biridir. ma’no shu darajada bizning til qo‘llanilishimiz bilan chambarchas bog‘liq-ki, uni chegaralarini belgilash juda qiyin, til ma’nosi bizga gapni to’g’riligini baholashga imkon beradi, gapni qayta qurishga, qo’shimcha ma ‘nolarni tushunishga va so‘zlarni ko‘chma ma’noda ishlatishga yordam beradi. yosh vaqtimizdan bu so‘zlarni, vaziyatga va bir-biriga mos ravishda ishlatishga o’rganamiz. kattaligimizda o‘rganib, u haqda so‘z yuritib va bahs olib boradigan narsalarni ko‘pchiligi so‘z va fikr ma’nolarini topish bilan bog‘liq. psixolingvistika til ma’nosi muammosida ikki yo‘nalishni belgilasa bo‘ladi: tuzilmasi jihatdan, u ma’noni parametrlarini va xususiyatlarini belgilaydi, va ma’noni diqqat markazida til ma’nosini o’zlashtirish va tushunishi muammolari turgan jarayon sifatida ko’rib chiqish. ma’no asosini belgilovchi tuzilmalar ko‘pgina mutaxassislarni lug‘at tuzuvchi, filolog, ayrim tilshunos, filosof, psixolog va antrapologlarni qiziqtiradi. ularni ma’noning parametrlari va turlari, so‘z ta’rifi, so‘z birikmasini gapda ma’no qabul qilishi kabi savollar qiziqtiradi. bu narsa bola to‘g‘ri va ma’noli fikr bildirishi maqsadida o‘rganishi lozim, ammo tahlil va tuzilma muammolarini qanday qilib til o‘zlashtirilishi haqidagi savolni yechmagan holda ham tadqiq qilsa bo‘ladi. asosiy vazifabu leksikani birliklarini semantik belgilarini ta’riflash. bu muammo ko‘proq fonologiyada differentsial belgilarni aniqlash bilan o‘xshash. bu vazifama’no birliklarini asosiy – umumiy yoki spetsifik – xususiyatlarini ta’riflashdan iborat. bu borada ikki aspektni belgilash lozimso‘z ma’nolarini va uning komponentlari muammolari va so‘z birikmasining gapdagi ma’nosi muammolari. jiddiy qilib aytganda, “so‘z” til tahlilining birligi bo‘la olmaydi, chunki so‘z ikki yoki uch birlikdan iborat bo’lishi mumkin. demak, old qo‘shimcha va suffikslar ham o‘zlari ham bir ma ‘noni anglatadi. ammo so’zlarni ma’noning minimal birliklari deb ko‘rib chiqishimiz mumkin. tadqiqotimizda mustaqil ma’noga ega bo‘lgan so‘zlar bilan chegaralanishimiz lozim. avvalambor, ma’noning denotativ (lot. denotare-belgilamoq) tahlili bo‘lishi kerak. denotativ ma’noning murakkab muammolari bilan shug‘ullangan tadqiqotchilardan biri antrapologlar bo‘ldi. ularning ishlari yana bir qiziqarli tadqiqot uslubi paydo bo‘lishiga olib keldi. bu “komponent tahlil”dir. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 57 www.americanjournal.org so‘z ma’nosini semantik komponent (bo‘lak) larga bo‘lish imkoni asosan turli xalqlarni qarindoshchilik atamalari tadqiqotlari natijasida paydo bo‘ldi. buning maqsadi bir necha chuqur fonologiyadagi differentsial belgilar kabi tasniflarni ta’riflashdir. komponent tahlil mohiyatini ingliz tilidagi qarindoshlik atamalarini tizimi asosida ko‘rib chiqamiz. bizning vazifamizingliz qarindoshlik atamalari o‘rtasida qanday semantik komponentlar farqlari borligini belgilash. uolles, gudinaf, atkins kabi shu muammo bilan shug‘ullangan antrapologlar uch parametrni belgilaydi, ular asosida amerikada “yaqin qarindoshlik”ni belgilovchi barcha atamalarning tasnifinin tuzib bo‘ladi. chuqur tahlil qilish maqsadida, biz qiziqtirayotgan jamiyatda ishlatiladigan barcha qarindoshlik atamalarni to‘liq ro‘yxatini tuzishimiz lozim. biz ikki o‘tgan va ikki bo‘lajak avlod bilan chegaralanamiz. shunda biz mazkur atamalar ro‘yxatiga ega bo‘lamiz: father (ota), mother (ona), grandfather (buva), grandmother (buvi), son (o‘g’il), daughter (qiz), grandson (nabira o’g’il), granddaughter (nabira qiz), unde (tog‘a), aunt (hola), nephew (jiyan o‘g‘il), niece (jiyan qiz), brather (aka), sister (opa), consin (amakivachacha, holavachcha). uolles va atkin ta ‘rifi bo’yicha bu terminlarning barchasi, “consin” so‘zidan tashqari, qarindoshning jinsini belgilaydi. ayrimlari esa avlodni belgilaydi. ayrimlari bevosita (“lineals”) qarindoshlikka ega, yoki gapirayotganni ajdodlari yoki avlodini belgilaydi, boshqalari esa bilvosita (“nonlineals”) qarindoshlikka ega, ya’ni gapirayotgan bilan bir ajdodga ega bo’lib, o‘zlari unga nisbatan ajdod yoki avlod emas. bu qarindoshlar o‘z navbatida ikki turga bo‘linadi: “yondosh” (“colineals”) – ularning ajdodlari gapirayotgan ajdodlari birbiriga mos va “uzoq” (“ab-lineals”) – ularning ayrim ajdodlari gapirayotgan ajdodlariga to‘g‘ri keladi. buning hammasi, uolles va atkinsga har bir keltirgan terminni tasnifi uchun uch parametr lozimligini ta’riflashga asos bo‘ldi. qarindoshning jinsi (erkak=a, ayol=a) qarindoshning avlodi (gapirayotgan ikki avlod katta= b+g, bir avlodga=b+1, gapirayotganning avlodi=0, bir avlod keyin=b+1. chiziqlilik: to‘g‘ri chiziq=c (bu yerda gapirayotganning bevosita ajdodlari yoki avlodi kiradi), yondosh chiziq =c (bu yerda gapirayotgan bilan barcha yoki bir necha ajdodlarga ega qarindoshlar kiradi) va uzoq=c (bu yerda to‘g‘ri yoki yondosh chiziqdosh qarindosh bo‘lganlar kiradi. bu bo‘yicha uolles va d, atkins shunday degan: “har bir atama tiklangan komponentlarga munosib ravishda shunday ta’riflanishi kerak-ki, u boshqasini yo‘lini to‘smay unga o‘tmasligi kerak; har bir komponent kamida bir atama bilan farqlanishi lozim; barcha atamalar bir turlash jadvalida mujassam bo’lishi kerak. bizning tasnif eng mukammali deyotganimiz yo‘q, lekin u mazkur atamalar yig‘ini uchun juda mos”. bunday komponent tahlil amerikalik qarindoshlik atamalar bilan qiyoslashda katta yordam berishi mumkin. masalan, nemis tilida qarindoshlilik jinsi ham belgilanadi (a-a): kusin (amakivachcha) va kusine (holavachcha) ingliz tilida bunday farq yo‘q. nemislarning qarindoshlik atamalar tuzishi inglizlardan uncha farq qilmaydi, yangi bir komponentni qo‘shish ahamiyati yo‘q. ammo turk tilida abla (katta opa) kabi atama mavjud. bu termin ingliz tizimiga qo‘shila olmaydi, chunki bu yerda osh komponenti yo‘q, (faqat avlod). mazkur turk atamasini ingliz sxemasiga qo‘shish uchun yana bir semantik komponent zarur“gapirayotgandan katta”. komponent tahlil mazkur atamalar tizimining chuqur differentsial semantik belgilarini belgilash uchun juda foydali uslub. ammo bu yerda ikki muhim muammo tug‘iladi. birinchidan, bu ma’lum bir american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 58 www.americanjournal.org semantik doirani tahlili psixologik jihatdan haqiqatga yaqinmi, ya’ni bizning qarindoshlik atamalariga real munosabatimizni belgilab oladimi? ikkinchidan bu yana ham jiddiy savolkomponent tahlilning bunday shakli boshqa turdagi semantik tizimlarning tadqiqotida qo’llaniladimi? avval psixologik haqiqiylik haqida so‘z yuritamiz. bu savol juda muhim, chunki ko‘pgina antrpologlar ular umumlashgan atamalar tizimi yaratib, gapirayotgan, ongida mavjud bo‘lgan, kognitativ tuzilmalarini ifodalaydilar, deb ta’riflashadi. komponent tahlilni xuddi shu muammosi psixolingvist uchun qiziqish yaratadi. biz komponent tahlilini turlicha shakli bilan yondashganda bu savol alohida tus oladi. qaysi shakl yaxshi ekanligini qanday aniqlasa bo‘ladi? bu savol romni va andrad tomonidan “ingliz qarindoshlik atamalarining kognitativ aspektlari” nomidagi maqolasida batafsil ko‘rib chiqamiz. bu maqolada mualliflar uolles va atkins sxemasi ingliz qarindoshlik atamalariga xos yagona narsa emasligini ta’riflaydilar. ular tahlilni boshqa variantini taklif qilishdi. ularning tizimida “yonbosh” va “uzoq” turlari bir kotegoriyasiga birlashib, “to‘g‘ri” (direct) turi qarama-qarshi qo’yilgan jins va avlod bu yerda ham muhim komponent hisoblanadi. bundan tashqari, yangi komponent kiritilgan “o‘zarolik” (resiprocity). u ota-bola, amaki-jiyan kabi turdagi atamalar juftligiga munosib. bu komponentlardan foydalanib, romni va d, andrad yangi sxema tuzishdi. ular mazkur sxema bo‘yicha shunday yozgan: “punktir chiziqlar oddiy operatsiyalar yo‘li bilan olinadigan atamalar o’rtasidagi munosabatlarni ifoda qilishi bois, shuni aytish lozim-ki, punktir chiziqlar bilan birlashtirilgan terminlar uzluksiz chiziqlar orqali bo‘lingan atamalarga nisbatan birbiriga “yaqin”. punktir chiziqlar tahlil jarayoni natijasida paydo bo‘ladilar”. endi ikkinchi savol: agar tahlilning ikki turi mavjud bo‘lsa, ularning qay biri “bizning boshimizda bo‘layotgan” narsalarni haqiqatdan ham ta’riflaydi, ikkisidan birimi, yoki ikkisi ham, yoki birontasi ham. turli amerikaliklar har xil tuzilmalardan foydalanishganmi yoki biron bir amerikalik turli vaziyatlarda turli tuzilmalarni qo‘llaydimi? romni va d, andrad ta’riflashicha, “bizning fikrimizcha, hamma vaqt, har qanday qarindoshlik atamalari tizimi tahlili uchun bir qancha uslub topish mumkin. biz bu tahlilni psixologik yoki kognitativ aspektlari haqida so‘z yuritganda, bu aspekt chegaralarini aniq belgilashimiz kerak bo’ladi. ayrim tahlil uslublari bir maqsadlarda foydali bo‘lishi mumkin, boshqa vaziyatlarda esa unchalik emas. biron bir hukm mazkur tizim uchun optimal ravishda mos, deb bo‘lmaydi”. romni va d, andrad bu ikki analitik tizimni to‘liq qiyoslab o‘rganishdi. bizningcha, shuni ta’kidlash lozim-ki, ularning tizimida asosiy urg‘u nuklear oila vakillari (ota-ona-o’g’il-qiz) va boshqa qarindoshlar o‘rtasidagi farqni belgilashga qaratilgan. bunday oila “tabiiy birlik” kashf etib, ammo uolles va atkins sxemasida aks qilinmagan, balki romni va andrad ingliz qarindosh atamalarining semantik tuzilmasini ta’riflash uchun to’g’ri yo‘l tanlashgan. bu ikki tadqiqotchi o‘zining xulosalarini tashqi ko‘rsatmalar orqali asoslaganlari yo‘q. ular komponent tahlilining tizimini psixologik haqiqiyligini dalilini inson xulqida ham izlashgan. amerikalik talabalar guruhi bilan birga ular bir necha nozik eksperimentlar amalga oshirishadi. ularning ta’kidlashicha, “komponent tahlil kognitativ munosabatlarni shu darajada ifodalaydi-ki, ikki atama ko‘proq umumiy komponentlarga ega bo‘lsa, ularning ta’siri ham juda o‘xshash bo‘ladi. bu ta’rif shunga asoslanadi-ki, har qanday atamaning komponentlari uning ma’nosini ham asoslaydi; demak, umumiy komponentlar qay darajada ko‘p bo‘lsa, ma’nolarda ham o‘xshashlik ko‘p bo‘ladi”. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 59 www.americanjournal.org avvalambor tadqiqotchilar 105 talabani ingliz tilida qarindosh va oila avlodlarini belgilovchi so‘zlar ro‘yxatini tuzishga chorladilar. shu ayon bo‘ldi-ki, ayrim atamalar boshqalarga qaraganda ko‘proq ishlatildi va ko‘pincha ro‘yxat boshida, talabalar ko‘proq ota va ona so‘zlarini bayon qilishdi. ya’na bir narsa ayon bo‘ldi-ki, o‘g‘il va qiz so’zlari unchalik ko‘p ishlatilmagan, faqat so‘roq qilinganlardan uchdan bir foizi. balki qarindoshlik atamalar bilan bog‘liq kognitativ tuzilmalar ma’lum darajada yosh bilan bog‘liq. romni va d, andrad ular kiritgan “o‘zarolik” komponenti juda foydali ekanligini ta’riflaydi: ota-ona va tog’a-amma turdagi o‘zaro juftliklar a’zolari ro‘yxatlarda ko‘pincha birgalikda aytib o‘tilgan. bu ko‘rsatmalar atamalarni ularning analitik sxemada birlashtiruvchi aloqalarni to’g’riligini isbotlashdi. in-law, great, half, second turdagi modifikator so‘zlar orqali paydo bo‘lgan atamalar guruhi sxemada berilgan guruhlar bilan hamisha to’g’ri kelgan. romni v d, andrad sinov o‘tayotganlarga qarindoshlik bilan bog‘liq uch atamadan iborat guruhlarni taklif qilishdi, va boshqalaridan katta farq qiladigan terminni belgilashni aytib o‘tishdi. hamisha shu namoyon bo‘ladi-ki, bir komponent bilan farq qiladigan atamalar bir guruhga birlashadilar, har xil komponentlardan iborat terminlardan farqli o‘laroq masalan, bir oilaga oid atamalarning aloqalarini ko‘rib chiqamiz. bu yerda biz faqat ikkita komponent bilan to‘qnashamizjinsi va avlodi. ota va ona bir avlodga mansub bo‘lib, jins komponenti bo‘yicha farqlanadi. ota va o‘g‘il jinsi bo’yicha bir komponentga ega, ammo avlod komponenti bilan farqlanadi. ota va qiz bu ikki komponentdan hech qaysiga ega emas (ammo boshqa umumiy komponentlarga ega). bu to‘rt termindan paydo bo‘ladigan uchliklarni qiyoslab va sinov o‘tuvchilarga taklif qilingach, romni va d, andrad shuni bayon qilishdiki, “ota termini qizga nisbatan otaga yaqin bo’ladi, va qizga nisbatan o‘g‘ilga yaqin bo‘ladi. bu holatning bo‘lishi, jins komponenti avlod komponentidan kuchliroqligidan farqli o‘laroq sodir bo‘ladi. ya’ni, sinov o‘tuvchi jinsiy farqlarga e’tibor bermay, avlod farqini birinchi o‘ringa ko’tarsa, jinsiy belgi ma’lum darajada tasnifda paydo bo‘ladi: ota o’g’il bilan guruhlashadi, qiz bilan emas”. quyida berilgan sxemada to‘rt atama o’rtasidagi juft aloqalar berilgan. qavs berilgan sonlar mazkur terminlarni bir juftga birlashtirgan holatlarni o‘rtacha soni ota (0,9) (1,3) ona (1,0) o’gil qiz (0,8) . sxemadan shunisi ayonki, bu ko‘rsatmalar bashorat qilinganlar bilan teng keladi. sinov o‘tuvchilardan birontasi ham atamalarni birlashtirganda ikki har xil komponentlarni ishlatmadi. so‘z uchliklari bilan bog‘liq boshqa murakkabroq eksperimentlarda romni va d, andrad shunga amin bo‘lishdi-ki, atamalar o‘rtasidagi aloqalarga nisbatan ularning bashoratlari uolles va atkins sxemasi asosida qilingan bashoratlarga qaraganda ko‘proq o’zining tasdiqini topdi. romni va d, andrad shu xulosaga kelishdi shuni bilish juda foydali-ki, “formal tahlil yo‘li bilan paydo bo‘ladigan komponentlar so‘zni ma’nosini belgilaydi” va “mazkur guruh uchun komponent tahlilining bir shakli boshqasiga nisbatan foydaliroq bo‘lishi mumkin. mazkur ishning asosiy xulosasi – odamlar qarindoshlik atmalarni shunday tarzda tadbiq qilishadi-ki, xuddi har bir termin aniq chegaralangan ma’nolarning yig’indisini o’zida mujassam qiladi”. foydalanilgan adabiyotlar: 1.“psixologiya” qisqacha izohli lug‘at. т. 1997.1979. 2.almamatov t., yadgorov q., pochayeva g. o‘zbek tili o‘qitish metodikasi (metodik qo‘llanma). jizzax 2006. 3.g‘ulomov a., qodirov m., ona tili o‘qitish metodikasi. “universitet” nashriyoti.t.: 2001. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 60 www.americanjournal.org 4.husanov n., mirahmedova z. mutaxassislik tili. t.: tmi, 2003. 5.mahmudov n. “so‘z sandiqchasi”. toshkent: g‘.g‘ulom nomidagi nmiu, 2016. 6.qo‘ng‘urov r., begmatov e., tojiyev yo. nutq madaniyati va uslubiyat asoslari, -t.: fan, 1992, 254 b. 7.rasulov r., husanov n., mo‘ydinov q. nutq madaniyati va notiqlik san’ati. t.: “iqtisodmoliya”, 2006. 8.ziyodova t.u. hozirgi o‘zbek adabiy tilini o‘rganishda kommunikativ jadvallardan foydalanish. o‘quv-metodik qo’llanma. akademik liseylar uchun. — t.: 2002. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 135 www.americanjournal.org importance of marketing in business yandasheva nozanin student of group 1a-22 economy (by industries and sectors). navoi state university of mining and technology a b s t r a c t k e y w o r d s this scientific article describes the ways of organizing marketing activities in business. marketing services operating in enterprises of different sectors differ from each other in the principles and forms of organization. most of the literature mentions five principles of organizing marketing services and two forms of its management. business, business entities, marketing, enterprise, market, product, functionalproduct, functionalmarket, product. introduction marketing services operating in different enterprises differ from each other in the principles and forms of organization. most of the literature mentions five principles of organizing marketing services and two forms of its management. each enterprise relies on its internal capabilities and chooses the most suitable one. these principles are: 1) functional; 2) geographical; 3) goods; 4) market; 5) can be combined. according to the first principle, each function of marketing (advertising, new product creation, sales, research, marketing planning, customer service, etc.) are subject to the deputy. the efficiency of such an organizational structure is high in enterprises with a small range of products. as a result of the increase in the range of products, on the contrary, the efficiency decreases. enterprises that sell goods on a large scale are mainly based on the second (geographical) principle. in this case, they organize the company's activities by regions, and organize independent marketing services in each of them. in turn, they all report to the company's vice president for marketing. enterprises with a wide product nomenclature mainly organize marketing using the third (commodity) principle. in this case, separate marketers operate for each type of product and are responsible for the sale of brands assigned to them. based on the fourth principle (market), firms organize marketing services based on the characteristics of market segments. it takes into account the customer's behavior, taste, ability to pay and other indicators. in practice, in addition to marketing services based on the first four principles, they are also used in combination. for example: it can be functional-product, functional-market, functional-geographic, product-geographic, product-market. as a result, the marketing service organization principle based on the fifth (combined) principle is created. along with the principles listed above, there are two forms of marketing organization. these are: project; matrix. in the first one, the person responsible for each product is given broad powers and provided with individual experts and other necessary material resources. each of the groups working separately is a separate project. each of them is subordinate to only one leader. this can be called vertical management. in the second, the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 136 www.americanjournal.org projects are interdependent, and each one is subordinate to several leaders. the advantage of this form over the first one is that the necessary material resources for each project are not brought separately, but the received resources are used together, which leads to a decrease in costs. based on the principles and forms of marketing service organization, in order to organize marketing services in small business entities, in all of them such work is performed not by individual full-time employees, but by the head of the enterprise or his deputy. along with marketing work, they perform several tasks (accountant, manager, technologist, supplier, etc.). although most of these leaders have higher, secondary and special education, they are engineers and technologists by speciality. some of you don't even understand the meaning of the word "marketing". most of small enterprises have up to 25 workers and employees, about 90% of them are direct participants in production, and the rest are indirectly involved in this process. if the number of personnel is insufficient, the head of the enterprise will have to directly participate in economic operations. the main part of them are enterprises that have not been established for a long time and are just establishing a business. most of the employees have interchangeable qualifications and experience, the division of labour and specialization has not deepened, and the leader is responsible for solving issues at different levels. determining the amount of production, supply, management, customer attraction and sales are also among the main tasks of the head of the enterprise. the process of increasing the number of employees and expanding the activities of the enterprise leads to a deepening of the division of labour, in turn, each employee or worker has a function that he performs separately. the same process is observed in enterprises with 25 or more employees. in them, management of the production process, accounting, supply, and sales are entrusted to individuals, and the manager establishes general control. however, companies do not have a marketing staff or department. therefore, the organization of marketing services, based on the principles and forms presented in the literature, cannot be directly applied to enterprises. therefore, it is a natural necessity to propose a unique principle of a marketing organization in relation to enterprises. in addition, it is impossible to apply project (vertical) or matrix organizational forms of marketing to enterprises. because such forms require several marketing experts, and more material and financial resources. enterprises do not have such opportunities. therefore, it is necessary to develop an organizational form of marketing specific to them. considering the network's characteristics, it is essential to develop the organizational principle and form of marketing services and create a new model. proposed model: understaffing of kbs; a small volume of production; made taking into account the mode of working hours of managers and employees, etc. that is, in kbs, it is assumed that the employee needs to perform several functions, the production operation in the enterprise is low, and as a result, the manager can find time to deal with other functions. based on this, the model shows that the manager or his deputy performs other functions in parallel with marketing. the difference from the listed principles is that marketing is attached as a function based on the free time and ability of kbs employees to perform marketing work. no jobs will be created and no workers will be hired to fulfil this responsibility. in enterprises, a marketing employee must perform a number of functions related to him. they include market research, planning, development of strategies for the elements of the marketing complex, positioning of the product in accordance with the market, control and analysis. in this regard, each enterprise approaches based on its capabilities, characteristics, and existing conditions. in kbs, these works are carried out by the head of the enterprise or his deputy together with other functions. if the kbs are asked the question, "what kind of work does a marketing person in your company do?", most american journal of business management, economics and banking volume 12 may, 2023 p a g e | 137 www.americanjournal.org of them answer that it is production planning, control, analysis, and organization of sales. therefore, other functions of marketing are not paid much attention in such economic entities. some of them do not even understand the meaning of the word "marketing". nevertheless, most of the small enterprises are operating successfully in the market. although they have no theoretical understanding of this issue, it is observed that they perform marketing functions in practice. unlike the marketing services presented in the literature, our proposed model is distinguished by its compatibility with the following characteristics of kbs: lack of material, financial, and labour resources; one person to perform several functions, etc. therefore, none of the above 5 principles can be directly applied to kbs. it is contrary to the organizational structure of marketing in kbs, as presented in the literature, in a "project (vertical)" or "matrix" form. for this reason, an option with a "horizontal" shape is offered. at the same time, the employee performs other similar economic functions (accounting, finance, management, etc.) along with marketing work. references 1. toffler e. metamorphosis of power: knowledge, wealth and power at the threshold of the xxi century – m.: publishing house "ast", 2008. – 669 s. 2. applegate l. m., mcfarlan f.w., mckenney j. l. corporate information systems management: the issues facing senior executives. irwin, 1996. 3. xudayarov r., akhror a. big data types of education system and opportunities for using them in the field //journal of academic research and trends in educational sciences. – 2022. – т. 1. – №. 4. – с. 21-24. 4. uchkun s., dilshod n. process of identifying the significant accounts in the revenue cycle //journal of marketing, business and management. – 2022. – т. 1. – №. 1. – с. 32-36. 5. j. smit, s. kreutzer, c. moeller, m. carlberg, "industry 4.0 analytical study", economic and scientific policy european union, 2016. 6. k. schab, "fourth industrial revolution", world economic forum, 2016. 7. l.k. gurieva, "strategy for the innovative development of the regional economy: theory and methodology", vladikavkaz, 2007. 8. uzbekistan quality job creation as a cornerstone for sustainable economic growth. kym anderson, edimon ginting, and kiyoshi taniguchi. may 2020 9. wallerstein, "world-system analysis. an introduction". duke university press, 2006. 10. https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nimadegani/.html 11. https://review.uz/uz/post/raqamli-iqtisodiyot-mamlakatimiztaraqqiyoti -garovidir. https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nima-degani/.html https://uzinterbiz.com/yangi-boshlayotganlar-uchun/nimadan-boshlashkerak/iqtisodiyot-nima-degani/.html https://review.uz/uz/post/raqamli-iqtisodiyot-mamlakatimiztaraqqiyoti american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 85 www.americanjournal.org the role of spatial imagination in the engineering profession yusupova nazokat sattiyevna andijon qishloq xo’jaligi va agrotexnologiyalar instituti. “elektr energiyasi va nasos stansiyalaridan foydalanish kafedrasi” assistenti mashrabbayev hayotullo andijon qishloq xo’jaligi va agrotexnologiyalar instituti. “elektr energiyasi va nasos stansiyalaridan foydalanish kafedrasi” assistenti a b s t r a c t k e y w o r d s engineering and computer graphics have an important and important place among all subjects of engineering. in the advanced age, people must have imagination and thinking and mental health to be the owner of a perfect profession. a part of engineering and computer graphics, drawing geometry mainly deals with theoretical and practical concepts. in order to know the solution of all metric and positional problems in drawing geometry, the student needs to have a spatial vision. in this article, an understanding of the solution of the problem is given, using the most convenient method of determining the point of intersection of the plane and the mutual plane in the general situation, which formed an arbitrary angle with respect to the projection planes, given by the traces. coordinate axis, projection plane, straight line, plane given by traces, point, point of intersection. introduction: tasavvur, bu juda katta kuch va u insonning miyasida his eta oladigan tushuncha demakdir. ya’ni aqlan va ruhan kuchli hamda sog’lom bo’lishning asosiy belgisi hisoblanadi. tafakkur esa, bilish, anglash, idrok etish va his qilish kabilardir. u insonning eng yuksak darajasi hisoblanadi. har ikkala jumlaning o’zaro uzviy bog’liqligi insonning mukammal bo’lib o’sishiga imkon yaratadi. chizma geometriyadan turli masalalarni yechimini aniqlashda albatta fazoviy tasavvur va tafakkur qilish kerak bo’ladi. quyida chizma geometriyadan proeksiya tekisligiga nisbatan ixtiyoriy burchak hosil qilgan, izlari orqali berilgan pv, ph tekislik hamda umumiy vaziyatda joylashgan ab to’g’ri chiziq kesmasini o’zaro kesishuv nuqtasini aniqlash masalasini ko’ramiz. tadqiqot materiallari va metodologiayasi. muxandislik va kompyuter grafikasini o’qitish metodikasida nazariy va amaliy masalalarni chuqur o’rganish zarur. sababi, hozirgi texnika va texnologiyalar rivojlangan davrda mutaxassislar uchun yangi zamonaviy dolzarb masalalar juda ko’p uchraydi. chizma geometriyada fazoda joylashgan har qanday grafik ko’rinishlarni o’qiy olish va american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 86 www.americanjournal.org yechimini aniqlash zarur bo’ladi. berilgan masalada tekislik bilan to’g’ri chiziqning kesishuv nuqtasini aniqlashda ikki hil usuldan foydalanish mumkin. 1. berilgan ab to’g’ri chiziqning o’zidan foydalanib, kesuvchi tekislikka aylantirib olish va shu tekislikning izlarini aniqlab olish orqali; 2. berilgan tekislikka parallel qilib, ab to’g’ri chiziqning izlarini aniqlab, shu izlarini kesishuv nuqtasini aniqlash orqali topish mumkin. har ikki usulda ham tekislik bilan to’g’ri chiziqning o’zaro kesishuv nuqtasini aniqlash imkoni mavjud. asosiy qism. quyidagi chizmada masalaning yechimini aniqlash uchun, tekislikning gorizontal izi ph ga, parallel qilib, to’g’ri chiziqning ah uchidan (ah ǁ ph ) o’tkaziladi. bu chiziq ox o’qi bilan kesishguncha davom ettirilib va u nuqtani ah 1 bilan belgilab olinadi. ah 1 nuqtaning frontal proeksiyasini esa av tomonini ox oqiga parallel qilib, o’tkazilgan chiziqning o’zaro kesishuv nuqtasidan belgilab olinadi. (ox ǁ av) navbatdagi to’g’ri chiziqning bh uchidan huddi shunday ph tekislikka parallel (bh ǁ ph) chiziq o’tkazib olinadi va bh 1 nuqta aniqlanadi. uning frontal proeksiyasi esa, ox o’qiga parallel qilib bv dan o’tkazib, uning kesishuv nuqtasidan aniqlanadi. (ox ǁ bv) hosil bo’lgan av 1 va bv 1 nuqtalarni o’zaro tutashtiramiz. natijada to’g’ri chiziqning izlarida yotgan hamda izlari orqali berilgan tekislikda yotgan kv, va kh nuqtalar aniqlanadi. foydalanilgan adabiyotlar. 1. murodov sh., l.hakimov, a.xolmirzayev. chizma geometriya.-t.: “toshkent iqtisodmoliya”, 2008. 2.u.t.rixsiboyev,d.f.kuchkarova,ch.t.shakirova,x.m.rixsiboyeva. chizma geometriya va muxandislik grafikasi. t. tafakkur qanoti, 2019. 3. u.t.rixsiboyev,d.f.kuchkarova, ch.m. shokirova, x.m. rixsiboyeva. chizma geometriya va muxandislik grafikasi. “tafakkur qanoti” toshkent – 2019. 4. gidrotexniklar uchun chizma geometriya. sh. murodov. toshkent “oqituvchi” 1991. american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 137 www.americanjournal.org increasing the export potential based on the development of the market of uzbek agricultural products hasanov shamsiddin hafizovich teacher of the "finance" department of keei a b s t r a c t k e y w o r d s foreign trade processes play an important role in uzbekistan's international economic relations. the development of foreign trade is carried out directly by increasing the export potential, delivering new products and services to the world market in terms of quantity and quality. today, it is emphasized in many studies that there is a huge export potential in the agricultural sector. however, one of the problems faced by agricultural producers and product processors can be described as having the necessary information about the foreign market, adapting to innovative and technological changes, and studying the requirements of the international market. this article aims to analyze the role and importance of marketing research in increasing the export potential of agricultural products of uzbekistan, the processes of formation of the value chain in the sale of products, methods of increasing competitiveness in the international market, and the analysis of existing problems. international trade export international marketing value chain swot analysis market situation introduction agriculture plays an important role in the development of the economy of uzbekistan. according to the world bank's 2019 reports, agriculture accounts for 23% of the country's gdp. according to the state statistics committee, 55% of the country's population lives in rural areas. 23% of the total workforce is employed in agriculture. many researchers highly appreciate the opportunities available in agriculture and consider the adaptation of this field to modern market trends, transformation of production lines based on international market conditions, formation of practice and skills of constant and rapid analysis of foreign markets as important tasks. . on september 6, 2019, the president of the republic of uzbekistan held a meeting on the priority directions of agricultural development in 20202030. at this meeting, attention was paid to entering a new stage of agricultural development, introducing innovative and technological innovations, analyzing international markets. in particular, the development of the value chain in agriculture, the stimulation of local production based on the requirements of the foreign market will lead to economic efficiency. . the theories put forward by modern science include the importance of marketing research in the development of foreign trade of countries as primary factors. it is important to study the scientific and practical experiences of the field of international marketing in evaluating export potential, analyzing existing opportunities, monitoring american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 138 www.americanjournal.org international market changes, and making decisions. according to f. kotler, one of the scientists of the field of marketing, marketing is not a new or artificial field and scientific direction, but it is an important link of economic relations that has existed since ancient times based on a natural need. the main idea of the economy is to provide these constantly changing needs, while marketing is a tool for identifying these needs and shaping supply. research methodology quantitative and qualitative methods of analysis were chosen as research methodology in this article. in the article, scientific theoretical and empirical approaches were applied to the issues of analyzing foreign trade relations, studying the volume and composition of exports, introducing marketing research, and developing marketing analysis. the article used primary and secondary types of information for analysis. secondary information was used from the reports and data of international organizations, as well as the national statistics reports and data of the country. also, a structure of concepts was developed for deeper coverage of the topic, formation of visualization, and description of the relationship between variables and main research concepts. level of study of the subject a number of scientific articles, research works, dissertations and other analysis results have been developed on this research topic. in particular, it can be seen that the food and agriculture organization of the united nations (fao) has carried out scientific research on the topic of agricultural marketing in several countries of the world, especially in the case of developing economies. international food reform research institute (ifpri) is presenting reports on this topic. many scientific studies have been conducted by western european countries, including german research institutes, prestigious research centers of the usa , and the world marketing association. for example, scientific research in this direction was carried out by b. shermukhamov, i. salokhiddinov, b. salimov, b. nasimov, e. ergashev in uzbekistan. the analysis of the literature shows that conducting scientific research in this direction and continuing the research work are gaining urgent importance today. in particular, it can be determined that there is a need to conduct marketing research, develop theoretical analyzes and practical proposals in the agricultural sector of uzbekistan. analysis and results according to the results of existing scientific studies, literature analysis, reports and business analysis, the organization and development of marketing research has a direct impact on the production efficiency in agriculture and the increase in the volume of exports in international markets. due to the global pandemic in 2020, there is a sharp decrease in the foreign trade of the countries of the world. in particular, by the end of the year, many developing countries experienced a drop in economic indicators in their foreign trade relations. according to the reports published by the ministry of finance in september 2020, the volume of foreign trade turnover of uzbekistan in january-august 2020 was 24.5 billion us dollars. compared to this period of 2019, there was a decrease of 12.7 percent. this situation is directly agricultural. the issues of marketing research, sale and realization of agricultural products are considered urgent today. marketing research can be understood as the process that begins before the production of products. that is, manufacturers should be well acquainted with the market requirements while considering the issue of export to the foreign market. these requirements can be divided into the following groups: • product quality. in this case, the level of american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 139 www.americanjournal.org naturalness of the product, the level of less use of harmful drugs, pesticides, the effect of various natural processes on the product composition. also the taste of the product. • appearance of the product. the appearance of agricultural products has a direct impact on competitiveness in the international market. in this, attention is paid to the characteristics of the product, such as its size, color, structure, and beauty. in the export process, as one of the world's requirements, it is necessary to pay attention to the issue of the products being of the same size, i.e. calibration. if the importing company requires a product of 5-6 cm size, there is a possibility that products of smaller size will remain unsold[. • product packaging. today, packaging technology is changing year by year due to rapid development. packaging of products in an international format is required to be in accordance with consumer preferences in many ways. the packaging of long-distance products also affects their arrival in good condition. packaging is primarily a matter of design. secondly, depending on the type of product, packaging should be done in accordance with the process of how long it will be stored. • additional features. when the product is prepared based on the above requirements and introduced to the market, its additional features create a relative advantage in the competitive environment. good preservation of agricultural products, reliability, high content of useful vitamins and substances are well received by consumers. today, uzbekistan is joining the ranks of the world's largest exporters of several types of fruit. in particular, it is ranked 5th in the world ranking for cherry exports. it has joined the top ten in terms of apricot production and export. grape exports have been achieving good results in terms of revenue growth. at the same time, one of the opinions put forward by many researchers is that uzbekistan is relatively less competitive in terms of price in the international market [8]. for example, in 2019, several markets of russia faced several difficulties in the sale of dates. the price of persimmons from azerbaijan, another supplier country, is several times higher than that of uzbekistan. in addition, large consumer supermarkets did not impose excessive demands on the purchase of azerbaijani persimmons. as a reason for this, exporting businessmen pointed out superiority in services such as the size, color, packaging and delivery of persimmons. in 2019, an international fair was organized in the fields of agricultural development, production and service. specialists and companies from many parts of the world participated in this fair. in particular, european companies demonstrated their new technologies and new intensive methods of agricultural production. analysis of the necessary data from this exhibition showed that there is a large number of investors interested in the development of agriculture [9]. the presence of problems related to the sale of agricultural goods in the country has a negative impact on the issues of economic profit and efficiency. references 1. https://www.worldbank.org/en/country/uzbekistan 2. o’zbekiston respublikasi prezidenti 2019 yil 6 sentabrda qishloq xo’jaligini 20202030 yillar mobaynida rivojlantirishning ustuvor yo’nalishlariga bag’ishlangan yig’ilishdagi nutqi. 3. o’zbekiston respublikasi prezidentining “oʻzbekistonda fermerlik faoliyatini tashkil etishni yanada takomillashtirish va uni rivojlantirish chora-tadbirlari toʻgʻrisida”gi pf-4478 sonli farmoni. 2012 yil 22 oktabr. www.lex.uz (o`zbekiston respublikasi qonun hujjatlari milliy bazasi portali) 4. https://stat.uz/uz/180-ofytsyalnaia-statystyka-uz/6571-qishloq-xo-jaligi 5. b.shermukhamov, i.salokhiddinov, methods for modernization of agriculture at economical reforms. journal of international finance and accounting, volume 2018, issue 4. 6. b.nasimov , o’zbekistonda qishloq xo„jaligi tarmog„ining innovatsion faoliyati samaradorligi // “xalqaro moliya va hisob” ilmiy elektron jurnali. №1, 2018 yil.(3-5 betlar) https://www.worldbank.org/en/country/uzbekistan https://stat.uz/uz/180-ofytsyalnaia-statystyka-uz/6571-qishloq-xo-jaligi american journal of business management, economics and banking issn (e): 2832-8078 volume 39, august 2025 p a g e | 1 www.americanjournal.org theoretical basis and practical directions of optimization of financial instruments and investment sources in free economic zones kuziev ravshan ramazanovich phd, independent researcher a b s t r a c t k e y w o r d s this article provides a scientific analysis of the types of financial instruments and investment sources in free economic zones (fezs), their economic efficiency and impact on regional development. the role of financial instrument diversification, preferential financing, infrastructure bonds, venture capital and digital grant platforms in fezs is highlighted. also, the institutional-pluralistic approach to the development of financial infrastructure, balancing resource asymmetry and vertically integrated financing models are evaluated from the point of view of efficiency. as a result of the analysis, theoretical conclusions and practical proposals have been developed to increase investment attractiveness, diversify risks and ensure financial stability in fezs. free economic zones, financial instruments, investment sources, institutional-pluralistic approach, preferential financing, venture capital, infrastructure bonds, digital financial infrastructure, financial clustering, investment attractiveness. introduction financial instruments in free economic zones (fezs) are a set of institutional financial mechanisms that serve to stimulate investment activity. these include fiscal support mechanisms, credit and insurance programs, forms of public-private partnership financing, and leasing-based financial solutions. in particular, preferential financing instruments implemented within the framework of the fez allow enterprises to minimize the cost of resources. also, investment flows based on the principle of financial clustering enhance local economic activity. in this process, the practice of attracting targeted capital through sectoral specialization funds increases efficiency indicators. thus, the financial architecture of the fez is becoming a factor that strategically influences economic balance. among the types of financial instruments, the most actively used are state-guaranteed infrastructure bonds, subsidized credit lines, and sources of financing in the form of insurance capital. the coordinated use of these instruments in the eih is forming a multimodal financing mechanism. investment instruments implemented through financial incubators are especially important in high-tech industries. this mechanism creates a diversified risk management system for investors. this, in turn, increases the speed of capital turnover and ensures multiplicative investment efficiency. therefore, the american journal of business management, economics and banking volume 39 august2025 p a g e | 2 www.americanjournal.org types of financial instruments directly affect not only the volume of investments, but also their spatial and inter-sectoral distribution. analysis of literature on the topic research by international and local scholars serves as an important scientific basis for studying financial instruments and investment sources in free economic zones. for example, c. jenkins (2018) in his work emphasizes that diversification of financial instruments in free economic zones is a key factor stabilizing investment flows, noting that the synergistic use of state-guaranteed bonds and preferential credit lines has a significant impact on regional gdp growth. ra musgrave (2019) substantiates the priority of an institutional-pluralistic approach and scientifically confirms that financial cooperation between the state and the private sector serves to reduce investment risks and increase capital profitability. in line with local experience, international research also provides important theoretical and practical conclusions. r. gulyamov (2021) analyzed the role of infrastructure bonds and financial incubators in uzbekistan's free economic zones as a mechanism for sustainable economic growth in production clusters. at the same time, j. h. dunning (2020) demonstrated the strategic importance of venture financing in free zones for high-tech industries within the framework of his international production paradigm, scientifically substantiating ways to increase risk diversification and capital turnover. dz zeng (2022), who analyzed the chinese experience, highlights the role of digital financial infrastructure in free economic zones and mechanisms for increasing the transparency and speed of investment processes through blockchain-based smart contracts and fintech ecosystems. in addition, the oecd expert group (2021) report scientifically substantiates the role of financial logistics systems and clustering strategies in free zones in optimizing the geography of capital flows and expanding investment space. these approaches are especially effective in export-oriented and international tradeintegrated regions. also noteworthy is the research conducted by pk wong (2020) on the development of the free economic zone financing system in recent years. he analyzes the institutional mechanisms for financing infrastructure projects based on public-private partnerships in the case of southeast asian countries, emphasizing the importance of the participation of digital grant platforms and international financial institutions in ensuring financial stability. analysis of domestic and foreign sources shows that the selection and targeted use of financial instruments in the fez is the basis for strategic economic growth, which serves to strengthen regional economic balance and increase investment attractiveness. analysis and discussion of results financial instruments in free economic zones are often formed on the basis of an ecosystem approach, that is, these instruments are integrated with regional infrastructure, transport and logistics capacities, and labor resources. in particular, credit institutions created within the framework of the transformational financial architecture provide financial support to production clusters in the free economic zones. also, the practice of venture financing is an important factor in attracting startup projects based on new technologies. statistical data show that in the regions where modern financial instruments have been implemented in the free economic zones, the growth rate of gross regional product has accelerated by 1.5–2 times. in this regard, an important role is played by the effective american journal of business management, economics and banking volume 39 august2025 p a g e | 3 www.americanjournal.org allocation of resources based on a dynamic liquidity strategy in financing. this approach stabilizes the activities of economic entities and increases their financial resilience. table 1 types of financial instruments in free economic zones and their economic efficiency indicators type of financial instrument scope of application financial efficiency index (in points) return on capital (%) risk level (1–10) preferential financing large industrial projects 8.2 12.5 4 infrastructure bonds transport and communication 7.9 11.8 5 subsidized loans small business and service 7.5 10.3 6 insurance capital agriculture and exports 6.8 9.2 5 venture financing innovative startups 8.6 14.6 8 financial incubators technopark and sez internal projects 7.8 11.1 6 digital grant platforms social innovation 7.1 10.7 7 blockchain-based smart contracts international trade and logistics 8.4 13.8 7 the table above shows the main types of financial instruments used in free economic zones, their practical areas of application and economic efficiency criteria. the indicators presented in the table are evaluated based on the return on capital, efficiency index and risk level of financial instruments, which are important for making investment decisions when analyzing them. the analysis shows that, although venture financing has the highest profitability (14.6%) and efficiency index (8.6 points), it is characterized by a high level of risk (8 points). this situation indicates a high level of uncertainty in investing in high-tech and innovative startups. at the same time, preferential financing is characterized by relatively low risk (4 points) and stable efficiency (8.2 points), which confirms it as an acceptable tool for industrial projects supported by the state. subsidized loans and financial incubators, on the other hand, have medium-level profitability and risk indicators, and are a source of stable financing, especially for small and medium-sized businesses. infrastructure bonds, on the other hand, are a long-term form of investment that allows for the return of fixed capital and the generation of passive income, which is important in the transport and infrastructure sectors. in conclusion, diversified types of financial instruments ensure the stability of the investment environment in the eih and allow for the formation of an appropriate approach to each project. the formation of financial strategies based on an analysis of the effectiveness and risk level of each instrument serves to create a competitive and sustainable model of economic growth. therefore, a scientifically based classification of financial instruments and their targeted use are an important pillar of the development of the eih. when assessing the effectiveness of financial instruments in the eih, indicators such as the return on capital index, the rate of return on investments, and the level of financial stability are used. the improvement of these indicators also has a positive effect on the macroeconomic indicators of the eih. american journal of business management, economics and banking volume 39 august2025 p a g e | 4 www.americanjournal.org an example of this is a significant increase in new production capacities and jobs in regions with a high reinvestment rate. a financial monitoring system and indicative planning elements are of great importance in increasing the effectiveness of financial instruments. this ensures transparency and accountability of financial flows. as a result, economic activity in the eih becomes balanced and stable. at the current stage, the introduction of digital financing infrastructure in the activities of the eih, namely fintech ecosystems, blockchain-based smart contracts and artificial intelligence-assisted risk analysis systems, is leading to a qualitatively new level of financial instruments. in particular, online grant-financing platforms are creating an additional resource base for small businesses and innovative entities. all this serves to increase the level of financial inclusion within the eih. at the same time, an optimal environment is being formed for various types of investors through financial transformation from the experimental to the institutional stage. such a modern and systematic appearance of financial instruments creates the basis for increasing the international competitiveness of the eih. as a result, the regional differential level of economic growth is reduced and economic balance is strengthened. theoretically, in financing the activities of free economic zonesinstitutional-pluralistic approachplays an important role. according to this approach, the collaborative activities of the government, the private sector and international financial institutions shape the financing architecture. in this approach,financial cooperationresources are integrated based on the principle ofregulatory preferencesreduces financial risks for investors. financial infrastructure is not only a set of technical systems, but alsofinancial services logisticsthus, the financing process is formed as an integral part of economic processes. one of the modern theoretical foundations of financing isresource asymmetry balancing theoryis aimed at optimizing the uneven distribution of resources. in free regions, this theoretical model is based onfinancial reallocation centersare being established. through such centers, individual financing mechanisms tailored to the needs of investors will be developed. in addition,institutional coding of financial flowsthrough this, their transparency and efficiency are ensured. this, in turn, creates an adaptive model of financing strategies within the eih. as a result, financing is not only a resource allocation, but also a mechanism for economic growth. the infrastructure of free zones consists not only of physical facilities, but alsodigital financial instruments infrastructureand is based on the idea of "digital sovereignty". in particular,fintech clusters,blockchain network-based settlement systemsandartificial intelligence-based monitoring modulesare strategic components of financial infrastructure. this infrastructure creates opportunities for investors to provide high-speed service, security and a clear profit forecast. at the same time,financial logistics systemsdirectly affects the location and level of capital flows. this reduces financial volatility within the region and stabilizes the investment climate. an intelligent and automated model of financial resource management is being formed using digital infrastructure. the eih financing system includes a multi-tiered structure, and thisvertically integrated financing modelit is represented as. at the top level, it involves state and international donors, at the middle level, commercial banks and investment funds, and at the bottom level, enterprises and individual investors. in this model, financial and capital transfer channels play a special role. in particular, financial intervention at the bottom level ensures the financial stability of small projects. at the same time, the efficiency of financing infrastructure projects is assessed based on the spatial intensity of capital circulation. this requires a systematic approach to financial management for the entire eih system. american journal of business management, economics and banking volume 39 august2025 p a g e | 5 www.americanjournal.org table 2 financing approaches and financial infrastructure fundamentals financing approach description application level (1–10) efficiency coefficient impact on investment attraction (%) institutionalpluralistic financing based on cooperation between the public, private sector and international institutions 9 0.91 45 resource asymmetry balancing directing financial flows by optimizing the uneven distribution of resources 8 0.88 42 vertically integrated model integration of financial layers at the state, bank and user levels 8 0.87 40 digital financial infrastructure financing based on artificial intelligence, blockchain and digital services 7 0.83 38 financial logistics system management of financial resources based on the location and circulation of capital flows 6 0.78 32 financial clustering formation of financial services centers across regions and sectors 7 0.81 35 table 2 shows the main theoretical approaches used in financing the activities of free economic zones, their description, level of practical application, efficiency coefficient and impact on investment attraction. each approach presented in the table performs a specific function in the economic system and describes different mechanisms for managing the flow of resources. the analysis shows that the institutional-pluralistic approach is characterized by the highest efficiency coefficient (0.91) and the level of application (9), which indicates that cooperation between the state, the private sector and international financial institutions has a strong impact on the investment climate. the resource asymmetry balancing approach, on the other hand, plays an important role in increasing resource efficiency, allowing for targeted redistribution of investment capital. this model increased the investment attraction rate by up to 42 percent. the vertically integrated model ensures seamless coordination of resources at all three stages of infrastructure projects at the state, commercial and user levels. based on this model, the continuity of financial flows and the balance of financing sources are maintained. digital financial infrastructure, on the other hand, is based on artificial intelligence, blockchain and digital platforms, which significantly improves the speed and security of the financing system. this approach allows creating infrastructures ready for global integration. financial logistics systems and financial clustering also serve to optimize regional investment flows. they clarify the geography of capital circulation, allowing to expand and diversify the investment space. in conclusion, theoretical approaches to financing and infrastructure foundations play a decisive role in increasing the investment attractiveness of the eih, ensuring resource efficiency and forming sustainable economic growth. financing and infrastructure are interdependent in the operation of free zonescomplementary economicsystems. as a result of their interaction, a chain of regional financial empowerment is formed. american journal of business management, economics and banking volume 39 august2025 p a g e | 6 www.americanjournal.org in this chain, the flow of resources, investment returns, and quality indicators of financial services reinforce each other. analyses show that the level of investment attraction in the eih without an effective financial infrastructure is 30–40 percent lower. therefore, an effective strategy is to adapt the financial infrastructure to different regions and sectors by clustering it. this approach creates a stable financial basis for long-term economic development. the formation of the investment climate in the free economic zones of uzbekistan is carried out on the basis of the principles of economic liberalization, institutional reforms and financial stability. in this environment, factors such as tax preferences for investors, currency freedom and simplification of the foreign trade regime play a key role. in the formation of the investment climate, a clustering approach is used based on sectoral specialization. through this, certain fezs are being directed to the energy, chemical, pharmaceutical or electronics sectors. at the same time, a simplified model of the regulator and investor service system is being introduced in the regions. as a result, a favorable environment is being formed for foreign and local investors, and the level of financial risk is decreasing. in the experience of uzbekistan, the legal framework created for sezs is based on the principle of integration of fiscal and institutional incentives. this integration creates conveniences at the stages of taxation of investors' activities, use of land resources and state registration. a system of temporary exemption from profit tax, land tax and customs duties for manufacturing entities in sezs is being implemented. this increases the capital intensity of investment activities and leads to a decrease in the cost of products. also, freedom of foreign economic activity is guaranteed through legal mechanisms. this simplifies the flow of investments and strengthens trust between the state and the investor. in recent years, legal reforms related to the activities of sezs have been carried out on the basis of compliance control and legal forecasting mechanisms. through these approaches, risks and obstacles arising in the legal environment are identified in advance and eliminated. in particular, the "single window" principle, the digital licensing system and online contract monitoring serve to strengthen the legal confidence of investors. through these systems, document circulation is accelerated and the efficiency of legal procedures is increased. at the same time, foreign practices are being studied in order to achieve legal convergence in international investment cooperation. this serves to bring the legal space of sezs closer to world standards. as a result of the above approaches, the principles of institutional stability and regulatory clarity are gaining priority in the activities of sezs. currently, it is planned to introduce an integrated rating system for the investment and legal environment in uzbekistan. these ratings will allow assessing and analyzing the quality of the environment in the sezs. on this basis, investors can directly influence the improvement of legislation through the mechanism of regulatory initiatives. the harmonization of the legal and investment environment directly affects the socio-economic results of the activities of sezs. in conclusion, the formation of the investment environment in sezs of uzbekistan is closely related not only to economic factors, but also to the improvement of legal mechanisms. conclusion and suggestions the following theoretical conclusions were formed within the framework of the research: 1. diversification of financial instruments in free economic zones is a key factor in ensuring the stability of investment flows and increasing regional economic activity. the coordinated use of instruments such as preferential financing, infrastructure bonds and venture capital accelerates the economic growth model. american journal of business management, economics and banking volume 39 august2025 p a g e | 7 www.americanjournal.org 2. the effectiveness of financial instruments is determined not only by the level of return on capital, but also by the acceptability of the risk profile. while high-risk venture financing creates innovative growth opportunities for high-tech startups, it must be reinforced by risk diversification mechanisms. 3. the institutional-pluralistic approach to the financing system of the eih has the highest efficiency coefficient, and cooperation between the state, the private sector and international financial institutions allows for the optimal allocation of resource flows. such a cooperative model increases the potential for attracting investment and strengthens financial stability. 4. the implementation of digital financing infrastructure is an important factor in increasing the international competitiveness of the eih. blockchain-based smart contracts, fintech ecosystems, and artificial intelligence-assisted risk analysis systems ensure transparency, speed, and security of financial transactions. 5. the integration of legal preferences, tax incentives, and institutional reforms in uzbekistan's sezs has significantly improved the investment climate. however, it is necessary to further enhance investor confidence and ensure regulatory stability through the introduction of an investment and legal rating system. summarizing the results of the above research, the following practical suggestions can be made: 1. optimizing a portfolio of financial instruments.develop a combination of financing instruments tailored to the specific sector and territorial specialization of each eih, including expanding insurance capital and state guarantee packages for high-risk innovative projects. 2. developing a digital financing ecosystem.increasing the financial inclusion of small and mediumsized businesses through the introduction of blockchain-based smart contract platforms and online grant funding systems. 3. improving the financial monitoring and evaluation system.create a national information system that provides real-time monitoring based on return on capital, investment return coefficient, and risk indices. 4. strengthening public-private partnership mechanisms.introduce the pfi (private finance initiative) model in large infrastructure projects and create a package of legal and fiscal preferences that encourage private sector participation. 5. creation of an investment-legal rating system. introduce an integrated rating system for assessing the legal environment and investment attractiveness of fezs, and implement regulatory reforms based on the results of the rating. 6. expanding financial clustering.optimize resource flows by forming financial services centers as regional clusters, and actively use international credit lines to finance export-oriented projects. american journal of business management, economics and banking volume 39 august2025 p a g e | 8 www.americanjournal.org references 1. jenkins, c. (2018). financial instruments diversification in special economic zones: impacts on regional investment stability. journal of development finance, 12(3), 45–62. 2. musgrave, ra (2019). public finance in a changing economy. cambridge: harvard university press. 3. gulyamov, r. (2021). the effectiveness of financial instruments and investment sources in free economic zones. economics and education, no. 6, 12–20. 4. dunning, jh (2020). multinational enterprises and the global economy. cheltenham: edward elgar publishing. 5. zeng, dz (2022). global experiences with special economic zones: focus on digital financial infrastructure. world bank policy research working paper no. 10142. 6. oecd expert group. (2021). special economic zones: investment flows, financing strategies, and policy recommendations. paris: oecd publishing. 7. wong, pk (2020). public–private partnerships in infrastructure financing: evidence from southeast asia. asian development review, 37(2), 88–115. 8. decree of the president of the republic of uzbekistan no. pf-4853 dated october 28, 2016 "on additional measures to activate and expand the activities of free economic zones." 9. law of the republic of uzbekistan "on special economic zones", february 25, 2016. 10. data from the state statistics committee of the republic of uzbekistan (2019–2024). american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 39 www.americanjournal.org organization of calligraphy trainings in educational institutions urinbayev isroiljon kadirjonovich andijan state university, teacher of the faculty of arts, department of "fine art and engineering graphics". e-mail: israil0109@mail.ru a b s t r a c t k e y w o r d s the article focuses on visual activity in educational institutions to train thinking ability, visual memory, creative imagination, artistic taste aimed at development. to visual activity in training students teaching painting, knowledge of building materials, acquisition of skills at school ideas about the successful acquisition of visual activity lessons and labor lessons given. visual activity, calligraphy, artistic creativity, painting, aesthetic sense, art works. calligraphy is an invaluable art that has acquired its own special direction in eastern countries and has risen to the level of a science. with the adoption of islam by the peoples of central asia, the arabic script also entered this country, and the ancient uighur, orhun-enasai, sughd, khorezmian scripts that were in circulation among people gradually fell out of use, and in their place from the end of the 7th century, the arabic script was used in official science and state affairs. became a record. at the same time, serious importance was given to mastering the arabic script and raising it to the level of art. in the east, the letters of calligraphers, in addition to expressing meaning, excited a person and gave him aesthetic pleasure. in central asia, before the advent of printing, calligraphers were engaged in the preparation of manuscripts and copying of their copies (the art of books). calligraphers worked in groups in palaces. each letter was considered a miracle of art. because of this, this art developed and different schools of calligraphy came into being. if we take a look at the history of the development of the art of calligraphy in central asia, we will learn that the movarounnahr school of calligraphy was created in the 7th-10th centuries in the central cities of the arab caliphate – mecca, kufa and basra, and later spread to other regions of the caliphate. calligraphers such as ahmad ibn umar ash'as abu bakr samarqandi (11th century), ahmad tabibshah movarounnahri (died 1215), ali banokatiy (13th century), jamshid shoshi (14th century) were the representatives of this school. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 40 www.americanjournal.org in the 14th and 15th centuries, an unprecedented rise was observed in the art of calligraphy, as in all areas of science, culture and art. in central asia, this type of art developed at a high level during the timurid, shaibani and last dynasties (ashtarkhani, mangit). the arabic word for «calligraphy» is «calligraphy» and refers to the art of writing (calligraphy), copying books, and the profession of creating books of architectural structures and works of art. the art of calligraphy and reading has a special place in the cultural heritage of the peoples of the east. before the introduction of book printing, calligraphers were engaged in preparing manuscript books and reproducing their copies (copying text). the creative works of more than a hundred calligraphers and artisans were displayed within the framework of the festival. the submitted calligraphy works were highly appreciated by the jury, and the participants were awarded «the most skilled calligrapher», «the most skilled calligrapher who created a new type of writing», «the most skilled craftsman who used examples of calligraphy in works of applied art», «the youngest calligrapher», «nasta there are nominations such as «the most skilled calligrapher in liq script», «the most skilled calligrapher in suls script», «the most skilled calligrapher in devoni script», «quran calligraphy», «architectural calligraphy» was awarded with a diploma and souvenirs. in the 15th century, the herat school of calligraphy was established with the support of the rulers of the timurid dynasty. during the time of amir temur, maulana shamsuddin munshi, the composer and calligrapher oltun were very famous. in alisher navoi's personal library, 11 great calligraphers are present: «sultan of calligraphers» sultanali mashhadi (1437-1520), mir ali tabrizi (1330-1405), who invented the «nasta'liq» letter and raised it to the level of art, darvesh muhammad taqi hiravi (first half of the 15th century ), abduljamil kotib (died 1505/1506), darvesh muhammad taqi (second half of the 15th century – beginning of the 16th century) are well known for their effective works. now calligraphy is very developed in a number of countries. for example, in turkey. that's why we need to create a school of calligraphy. calligraphy is a good course. each symbol and point has its own meaning. if we do not create this school, we will be left far behind. people may say, where is it needed? it will be necessary. large scientific schools are being built, our attitude towards language and languages is changing, so it will be necessary,» said the president. it is noted that calligraphy groups will be opened in a number of religious centers and higher schools in uzbekistan in the future, as well as in the republican art college named after benkov. the head of state also instructed the officials to conduct annual examinations among calligraphers. calligraphy is one of the most beautiful and elegant arts, and it refers to the art of writing (khat), copying books, and creating books of architectural structures and art objects. the art of calligraphy and literature has a special place in the centuries-old historical heritage of the peoples of the east, and even today their importance is considered high. on november 30, 2018, a meeting with the famous calligrapher habibullo salih was held at the department of arabic philology of the tashkent state institute of oriental studies. professors and teachers interested in the art of calligraphy and students took part in this event. calligrapher habibullo salih informed the students about the uniqueness of the art of calligraphy, the history of its development and its importance today. they also talked about the importance of learning the art of calligraphy and demonstrated their skills to the students. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 41 www.americanjournal.org the calligraphic art school that is expected to be opened in bukhara is called «al-manar» and all participants from 7 to 70 years of age are admitted to study. first, students learn arabic, and only then calligraphy. on december 23 of this year, a seminar was organized at the chirchik state pedagogical institute on the examination of the curriculum and concepts of pre-school, general secondary, vocational school, academic lyceum and higher education institutions from the point of view of coherence and continuity. during the seminar, a number of issues on ensuring continuity and integrity in fine arts and drawing were discussed. in addition, mutual opinions were exchanged on the optimization of topics in the textbooks of secondary schools, colleges, academic lyceums and higher education institutions and prevention of repetition. also, the composition of the working group on the examination of the concept of educational programs in this subject was approved and relevant tasks were determined. «each character is important in calligraphy, so one type of writing needs to be studied for an average of three months,» azimjon yaqubov, manager of the center, told sputnik during the pilgrimage tourism week. modern calligraphy is an integral part of uzbek traditional culture. unfortunately, there are not countless learned masters in this field. another circumstance of issue is there are also a less clientele that differentiate and appreciate their creativity. the scientific aspect of the sphere is also less learned. in art criticism, we know only some of the research on the history of modern calligraphy and some theoretical issues [1]. langsyne, arabic calligraphy used in many areas. such as, in the tiles (inscription on architecture), in stone (sepulchers), in wood carvings (feretories, doors), in pottery, in embroidery and another spheres of applied arts. tursunaliev nizomjon yunusovich is actively engaged with this work in the modern tashkent art culture. master was born on november 22, 1979 in tashkent. his profession is calligrapher-nakkosh. he graduated from the tashkent state pedagogical university with a bachelor’s degree in “drawing, fine arts and applied arts” (2000), master’s degree in applied arts (2002). teachers – salimjon badalboev (calligrapher), doctor of pedagogical sciences, professor saidakhbor bulatov, ne’mat inog’omov (nakkosh), bahrom nig’monov (nakkosh). nowadays nizomjon tursunaliev works with pedagogical activity in the following directions: 1) decorations in modern housing; 2) the verses of the arab letter in the mosques; 3) expressions in the arabic letter, which are framed for exhibitions and personal collections. the arab calligraphy has “kufic”, “naskh”, “thuluth”, “nasta’liq”, “ruqa’h”, “diwani”, “ta’liq” and other letters, and the writer must “write a mature calligrapher at least five letters” there is an opinion. in the mosques, master nizomjon uses “thuluth” “kuficc”, “naskh” letters. in 2015, tashkent region, zangiota district n. tursunaliev completed bakhrom nigmonov of decoration of inscriptions of “durman” jome mosque with his teacher. here, the suras “al-ikhlos”, “al-falaq” and “al-naas” are written in the sacred qur’an. in the top part, “subhaan allahi wa bihamdihi” and “subhaan allahil azhim” hadith sentences are written by emulsion paint. mostly, in architecture records, master uses this paint. because, sometimes the inscriptions are written thin and in some cases are thicker. additionally, the paint is mensurable daubed to surface of the wall and does not leave any pencil trace. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 42 www.americanjournal.org the sacred quran book is divided into three parts: 1) demand of the quran (“axkom” – z. sadullaeva) (about necromancy which is right or wrong); 2) the history of the prophets and 3) verses that glorify the uniqueness of god. in most mosques the verses of the third section are written. the other two verses are not nearly used. when writing the verses, the calligrapher himself chooses a type of arabic letter. in some cases, teachers are advised to write them in the letter “naskh” for easy to read. because “naskh” is easy to read; it is a simple letter type. that is why many beautiful examples of the qur’an were written in that letter. during the creative process of master nizomjon, professors of the mosque ask him to make the inscriptions look more attractive. then the calligrapher uses the message “thuluth”. but the characters in the inscriptions are written in the “kuficc” script and the letter becomes more attractive. other authors also follow this. that is why they call “thuluth” the “king” of letters in their circles. a calligrapher who cannot write in this inscription is not recognized as a professional calligrapher. that is why a calligraphy writer must know at least five arabic letters. master n. tursunaliev creates to order, and most of the orders are carried out in various verses in the quran. customers often ask to write “yasin” and “ayatul kursi” surahs. therefore, the master wrote not only mosques in our country, but also mosques built in neighboring kazakhstan. currently, the master is working on objects of architecture, and also explores other new trends, expands the range of creativity and demonstrates the beauty of arabic letters in other creative works. because the interpretation of the arabic letters in the architecture is based on the strict rules developed in the past. however, master nizomjon wants to create independent compositions, consisting of educative sapiential lines, which are of paramount importance for exhibitions. if inscription in the architecture is in arabic language only, the lines in it are in arabic spelling. the language is uzbek. he learned this innovation from his mentor, salimjon badalbaev. creative work on this paper is written on paper in gouache, watercolor and tempera. if the letter is written with a tally which is made of reed, it uses a special ink that is brought from turkey. this ink is called “murakkaba”. there are different colors available in sale. green and red are more commonly used in uzbekistan. in general, from the outset, the classic calligraphy samples are written with a reed. the letters are intended only for a beautiful rosette, as well as the letters “kufic”, consisting of large and fat letters, therefore, the masters first draw a line of letters, then the letters are smoothly painted with tempera. in this case, the master uses two different types of reed pencil to write one letter. written in one; with the second pen (the tip is thin reed pen) corrects the edges of the letters. if an hour is spent writing, it will take a day to straighten the edges. these can be seen in the works of the master: 1. “uzbekistan is my country!” (2016). (the letters “thuluth” and “naskh”). this panel has three primary colors used on the flag of the republic of uzbekistan – white, blue, green. the top of the line is blue, the middle is white, and the bottom is green. for the first time this work was shown at the “festival of applied arts” (2017, tashkent). 2. “the future of uzbekistan is a great state” (2017). the composition consists of three arabic letters: “thuluth”, “naskh”, “nasta’liq”. the word “great” in his text is written in the letter “nasta’liq”autograph master was written in the letter “ruqa’h”. master n. tursunaliev is at the same time a nakkash master, and he easily introduces ornaments on the letter into his work. for the first time american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 43 www.americanjournal.org this creative work was shown to the public at the 1st calligraphy festival in tashkent in 2018 and won first place in the nomination “compatibility of drawings in calligraphy”. master nizomjon writes other letters on reed and wooden pencils, expect “kufic”. if he uses a “kufic” in a composition, he will first write the font outline of letter on the paper. then he paints the inside of the letters with paintbrush. because the “kufic” can’t be written with reed pencil. but some craftsmen, like the famous tashkent-based calligrapher habibulla salih, also wrote “kufic” on the reed. from the above view, it is clear that there is a very intensive creative process in calligraphy. the role of this art is first of all important in the contemporary uzbek architecture. but along with the achievements of calligraphy, there are many pressing issues. the most important of them is the creation of various forms of the text of the uzbek latin alphabet in calligraphy. the reason for this is that the art of calligraphy was developed in the middle ages, when arabic was the working language of caliphate, and its status was very high. but now uzbekistan has an independent state and its own state language and its inscription. language has always been the foundation of the culture of peoples. for this reason, calligraphers, in order to raise the status of the uzbek language and latin alphabet, pay attention to this problem, first of all, today, the arabic language is appreciating as the only sacred language of modern uzbek culture. in other words, this language is used by orientalists in a narrow circle to study ancient manuscripts. while talking about the spirituality of modern society, it is clear that most of the population can’t read the arabic texts of the “kufic” or “thuluth” letters; do not even understand the meaning. however, these recordings should enhance the spirituality of the audience. they are written for that purpose. secondly, in our view, the masters who use the arabic language in the modern folk arts and crafts of uzbekistan superficially copy the old patterns and methods. this tragic situation creates artificial images in folk art. instea , when arabic texts are replaced by wise uzbek texts in latin, the society in which they become acquainted with samples of such creatures will: 1) strengthen their spiritual immunity; 2) in the modern applied art of uzbekistan, the problem of time and space is solved positively. references 1. sulayman h. timurid era study of artistic manuscript and calligraphy. monographs.–samarkand, 1969; murodov a. central asian calligraphy history.–tashkent: science, 1971; solih h. alphabet– tashkent, 1989; bulatov s., mansurov u. philosophy of applied arts in national architecture.– tashkent: fan, 2005; shoyunusov a. arabic calligraphy.– tashkent: east, 2007; a.r. bukhari. pearls of husnihat.tashkent: movarounnakhr, 2008 and others. 2. kaziev a. the artistic decoration of azerbaijan manuscript books xiii–xvii centuries.– m., 1977. 3. in central asia in the 3rd or 3rd centuries ad, the uighur, khorezm, ikhang-enasoy, uighur in the 6th–7thand 12th centuries, and in the 7th–19th centuries, arabic alphabets were used in the middle ages. in the 20th century came the cyrillic alphabet. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 151 www.americanjournal.org the value of crop rotation in the cultivation of vaccaria hispanica in conditions of typical gray soils of the tashkent oasis trobjon makhkamov department of forestry and landscape design, tashkent state agrarian university, doctor of philosophy (phd), associate professor, gulomjon jumaboyev department of medicinal plants, tashkent state agrarian university, assistant a b s t r a c t k e y w o r d s in the world, great importance in production is attached to the intensification of the use of valuable plants, that is, the use of all parts of the plant for specific purposes. vaccaria hispanica (mill.) rauschert is one of the promising plants grown in many countries of the world for the production of medicinal raw materials and saponins. vaccaria hispanica is a promising medicinal plant of the spanish millennium and, despite its wide distribution on the territory of our republic, the possibility of obtaining raw materials is very small, and at the same time, many scientists consider it a plant with a high cultivation potential, so it is urgent to develop methods for growing raw materials in the soil. -climatic conditions of the tashkent oasis. on the other hand, the development of scientifically substantiated optimal methods for propagating and growing the v. hispanica plant, the organization of industrial plantations, and the improvement of methods for preparing highquality raw materials acquire scientific and practical importance. introduction today, the belief that natural medicines are safer than synthetic ones has gained popularity around the world and has led to a dramatic increase in the use of phytopharmaceuticals. there is a growing interest in spices, nutrients and medicinal plants around the world. chamolilla resutitan l., datura stramoium l., silybum marianum l., gaertn. and vaccaria hispanica (mill.) rauschert are medicinal plants widely used for medicinal purposes. creation and production of phytopreparations using medicinal crops or introduced raw materials, preparation of raw materials in accordance with international standards, cultivation of medicinal and food plant species of high economic value, rich in composition, characteristic of the flora of other countries, great importance is attached. in this direction, the scientific substantiation of the patterns of growth and development of plants in various soil and climatic conditions, that is, the study of the patterns of ontogenesis, the determination of the most optimal american journal of business management, economics and banking volume 11 april, 2023 p a g e | 152 www.americanjournal.org cultivation periods by studying the seasonal patterns of development, of particular importance are the study of the influence of planting material and planting distance on the rate of growth and development of plants and yield, introductory development of plant breeding and cultivation methods and introductory assessment, organization of large-scale plantings. at the same time, as a result of a sharp increase in the number of people in the world every day, this indicates the need to compile a floristic list of valuable and exportable plants in the medicinal plant growing and pharmaceutical industry, and to meet the need for raw materials. therefore, it is important to obtain high-quality raw materials that can replace imports, to select and grow highly economically efficient plant species based on a deep analysis of the phytochemical composition of plants in various soil and climatic conditions. in recent years, many research works and doctoral dissertations have been carried out on the scale of our republic, aimed at the reproduction and cultivation of medicinal plants. at the same time, decisions are being issued at the state level, and large-scale reforms are being carried out in this area. the main attention is paid to the development of the local pharmaceutical industry and the creation of a raw material base for medicinal plants. in this area, important results have also been achieved in terms of breeding medicinal plants and creating plantations at an industrial level, as well as obtaining highquality raw materials, comparative comparison of biologically active additives and substances in various parameters, and selection of leader plants. according to various indicators. the action strategy for the further development of the republic of uzbekistan defines the tasks of "further development of the pharmaceutical industry, providing the population and medical institutions with affordable, high-quality medicines." to fulfill the important tasks and tasks specified in the action strategy, it is important to organize large-scale plantings of vaccaria hispanica, justify the growth and development in various soil and climatic conditions of our republic, develop methods of reproduction, determine the phytochemical composition, evaluate the introduction and apply in practice. material and research methods field studies, phenological, morphometric, anatomical, phytochemical, statistical methods were used. discussion of the results studies have been carried out on the technology of cultivation of the plant vaccaria hispanica in conditions of typical gray soils of the tashkent oasis. the influence of crop rotation on seed yield and other indicators in the cultivation technology of vaccaria hispanica has been studied. during 2020-2021 the studies were carried out in small areas on the territory of the information and consulting center "expanding center" at the tashkent state agrarian university. research experiments were carried out on a long-term irrigated and cultivated area in two versions, that is, on an area sown in previous years with cultivated crops and spanish millet, and on a protected area, that is, on an area cleared of weeds. and have not planted before. the abandoned area was cleared of weeds and prepared for planting. so, the options for research experiments are as follows: a) first, a reserve plot not sown with crops; b) firstly, the area sown with spanish millet; c) the area where crops were first planted. in spring, on a previously uncultivated plot, the land is covered with ephemeral and ephemeroid representatives of the cornflower family (hordeum murinum l., poa annua l., bromus sterilis l., etc.), and in summer, kakkra (leuzea repens l.) d.j.n. ind.), mulberry (malva ignorea wallr.), holly (alhagi pseudalhagi (m.bieb.) desv. ex wangerin) and other plants. previously, fields sown with spanish american journal of business management, economics and banking volume 11 april, 2023 p a g e | 153 www.americanjournal.org millet and cultivated crops were free from weeds. when studying the positive or negative impact of crop rotation on plants, the main attention was paid to such parameters as plant height, number of fruits and the amount of seed raw materials (kg/ha). in all variants, the sowing date is march 2, the seeding rate is 6.5 kg/ha or 160 seeds/m2. seeds are small, 1 g of seeds contains 150-250 seeds. planting depth 1.5-2 cm. row spacing 20 cm. agrotechnical activities were also carried out on all variants. watered 4 times per season. after sowing the seeds, the first irrigation was carried out, during which 600-800 m3/ha were sprayed. the purpose of irrigation is to ensure the normal germination of plant seeds and their growth and development in the subsequent period. it should be noted that at this time direct sunlight falls on the soil, causing a rapid loss of surface moisture by its layer. for this reason, after watering, they sprinkled with humus 1 cm thick in order to retain moisture in the surface layer of the soil. further irrigation measures were carried out at the rate of 400-500 m3/ha, depending on soil moisture and plant condition. at the same time, the second irrigation was carried out at the rate of 500 m3/ha with the formation of 3 pairs of leaves, the third with the formation of 7 pairs of leaves and the beginning of branching, the fourth was carried out. at the rate of 400 m3/ha during the period of full flowering. at the time of the third and fourth irrigations, the height of the plant bushes was 25-56 cm, and the plants completely covered the surface layer with their habit and significantly reduced water evaporation. the results obtained showed that at the end of the growing season of spanish mullein, the height of the plant in the protected area was 51.7 ± 2.1 cm, the number of fruits was 54.5 ± 2.7 pieces, and the seed raw material was 4975 kg. / ha, height 46 cm, number of fruits 48.8±3.8 pcs., seed material 2154 kg/ha, plant height 58.4±1.3 cm, number of fruits 68±2.4 pcs., seed material 5985 kg/ha (table 1). table 1 № ecological space plant height, cm number of fruits, pcs seed raw material, kg/ha 1 dry land 51,7±2,1 54,5±2,7 4975 2 the place where the cultivated crop was planted first 58,4±1,3 68±2,4 5985 3 the place where spanish millet was first planted 46,1±1,7 48,8±3,8 2154 willenborg & dosdall, (2011) carried out experiments on small plots (2 m × 6 m) in order to scientifically justify agrotechnical measures of spanish millet and found that yields varied between 1300 kg ha−1 and 6500 kg ha−1 and differed significantly between genotypes. . seed weight also varied significantly among genotypes, ranging from 3.7 mg in small-seeded genotypes to 8.8 mg in large-seeded genotypes. the low performance of spanish mulberry planted in protected areas is explained by the following circumstances. due to years of non-cultivation, the soil has become compacted and hardened, the physical property of water permeability has decreased and the chemical composition has become poor. according to many scientists, in the process of land development in agriculture, the use of intermediate crops before planting the main crops is considered effective, which, in turn, has a positive effect on the improvement of soil reclamation (weed removal, soil softening, physical and water permeability properties of the soil, and then its chemical composition). (tursunkhodjaev, 1972; nerozin, 1980). american journal of business management, economics and banking volume 11 april, 2023 p a g e | 154 www.americanjournal.org the vaccaria hispanica plant, grown in cultivated fields, differed from the rest of the options in all its parameters and showed a high result. there are 178 seeds per 1 g of the plant, and it is superior to other variants due to the large size of the seeds and the abundance of fruits on the bushes. the number of fruits is 65-72 (68±2.4) pieces, 125% compared to the protected area (54.5±2.7), 139% compared to the area previously planted with spanish millet (48.8±3.8). was high. in conclusion, it can be said that crop rotation has a good result in increasing the seed yield of the plant, and it was found that high soil fertility is the main factor. at the same time, it is possible to plant the plant twice in the same place only when it is treated with mineral fertilizers. however, it is possible to carry out pharmacological research on the raw material prepared from the plant grown with the help of mineral fertilizers and only when positive results are achieved. for this reason, it is important to test spanish millet in rotation with different crops. the experiments carried out by us are the measures of organic cultivation of spanish mullein and serve as a basis for the establishment of cultivation with the help of various organic fertilizers in the future. the research experiments showed the same result as the scientific conclusions presented in the literature and showed the correct approach in conducting the experiment. conclusion: experiments were carried out in three variants of crop rotation. at the end of the growing period of the spanish millet, the height of the plant in the protected area is 51.7±2.1 cm, the number of fruits is 54.5±2.7, the raw material of seeds is 4975 kg/ha, the height of the plant is 46 cm, the fruits are number 48.8±3.8 pieces, seed raw material 2154 kg/ha, plant height 58.4±1.3 cm, number of fruits 68±2.4 pieces, seed raw material amount 5985 kg made up /ha. references 1. шерматович, жумабоев ғулом, and тробжон хусанбоевич махкамов. "инвазив ўсимлик испан мингбошини етиштиришнинг айрим жиҳатлари." intellectual education technological solutions and innovative digital tools 1.12 (2022): 43-46. 2. махкамов, т. х., and м. а. авазова. "тошкент вохаси шароитида испан мингбошини етиштириш технологияси." agro inform 4 (2022): 30-35. 3. мелиқўзиев, a. a., д. а. ергешев, and т. х. махкамов. "инвазив ўсимлик amorpha fruticosa l. нинг биоэкологик хусусиятлари ва кўпайтириш усуллари." academic research in educational sciences 3.7 (2022): 168-175. 4. жумабоев, ғ. ш., and т. х. махкамов. "тошкент вохаси шароитида испан мингбошининг морфометрик кўрсаткичлари." ta’lim fidoyilari 2 (2022): 5659. 5. шерматович, жумабоев ғулом. "определение количество общего белка в семенах vaccaria hispanica (caryophyllaceae), выращенного в условиях узбекистана." ta’lim fidoyilari 2 (2022): 45-47. 6. maxkamov, t. x., and c. boboev. "vaccaria hispanica urug ‘ini ekish muddatlari va meyorlarining urug ‘hosiliga ta’siri." academic research in educational sciences 3.12 (2022): 450-455. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 155 www.americanjournal.org 7. бобоев, с. б., and т. х. махкамов. "colchicum autumnale (colchicaceae)–куз савринжонининг ўсиши, ривожланиши ва хомашё миқдорига туганак пиёзлари ҳажмининг таъсири." agro inform 4 (2022): 24-29. 8. бобоев, с. б., and т. х. махкамов. "colchicum autumnale l.(colchicaceae) нинг интродукция шароитида морфогенези." agro inform 4 (2022): 10-19. 9. жумабоев, г. ш., and т. х. махкамов. "инвазив усимлик-испан мингбоши (vaccaria hispanica (mill.) rauschert) ни маданийлаштириш истикболлари ва уруг унувчанлиги." гулду ахборотномаси 1 (2022): 17-23. 10. сотиболдиева, д., т. х. махкамов, and г. м. дусчанова. "анатомо-гистологическое строение корневища curcuma longa l.(сем. zingiberaceae) в условиях интродукции)." намду илмий хабарномаси 1 (2019): 54-59. 11. тўхтаев, б. ё., et al. "доривор ва озуқабоп ўсимликлар плантацияларини ташкил қилиш ва хом ашѐсини тайѐрлаш бўйича йўриқнома." (2015): 3-5. 12. sotiboldieva, dilnoza i., and trobjon x. mahkamov. "component composition of essential oils curcuma longa l.(zingiberaceae) introduced in uzbekistan." american journal of plant sciences 11.8 (2020): 1247-1253. 13. yuldasheva, n. e., and m. aminova. "albuca bracteata–hind piyozini etishtirish usullari va shifobahshlik xususiyatlari." academic research in educational sciences 3.2 (2022): 376-384. 14. ubaydullaev, farxod, et al. "irrigation regime influence on the growth and seedlings development of common fake chestnut (aesculus hippocastanum l.) and japanese safflower (sophora japonica l.) in the highways landscaping." e3s web of conferences. vol. 264. edp sciences, 2021. 15. убайдуллаев, ф. б. "влияние стимуляторов на рост сеянцев конского каштана." актуальные проблемы современной науки 3 (2018): 115-119. 16. убайдуллаев, фарход бахтияруллаевич, and фарҳод джураевич хаитов. "автомобиль йўллари ва шаҳар кўчаларидаги сайилгоҳ ҳудудининг тошкент воҳаси учун баланси ва яшил экинзорларига тавсия этилаётган манзарали ўсимлик турлари." dbiology: 95. 17. bakhtiyarullaevich, ubaidullaev farkhod, and majidov abdulaziz norqobilovich. "vegetative propagation of black mulberry (morus, nigra l) recommended for landscaping roads and city streets." texas journal of agriculture and biological sciences 12 (2023): 37-40. 18. bakhtiyarullaevich, ubaydullaev farkhod, xaitov farhod djuraevich, and ubaydullayev abbosjon azimjon ogli. "toshkent shahar mirzo ulug’bek tumaniidagi dahalarni ko'kalamzorlashtirishda daraxtlarning sanitar gigienik va xususiyatlari." conferencea (2023): 149-153. 19. bakhtiyarullaevich, ubaidullaev farkhod, and ubaydullayev abbosjon azimjon ogli. "sanitary-hygienic peculiarities of greening of streets and automobile stations and national points." galaxy international interdisciplinary research journal 11.2 (2023): 53-58. 20. bakhtiyarullaevich, ubaidullaev farkhod, majidov abdulaziz norqobilovich, and khudaybergenov sardor kamaraddinovich. "agrotechnics of cultivation and use of mulberry seedlings for picturesque landscaping of highways." galaxy international interdisciplinary research journal 11.1 (2023): 363-370. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 156 www.americanjournal.org 21. убайдуллаев, фарход бахтияруллаевич, and фарҳод джураевич хаитов. "types of ornamental plants recommended for balance and landscaping of parking areas on highways and walks in city streets for tashkent oasis." science and innovation 1.4 (2022): 95-100. 22. bakhtiyarullaevich, ubaydullaev farkhod, et al. "landscape composi̇ti̇ons based on evergreen shrubs i̇n the landscapi̇ng of ci̇ty streets." american journal of research in humanities and social sciences 10 (2023): 40-43. 23. ubaydullayev, f., and sh gaffarov. "selection of prosperous varieties of rosehips (rosa l.) and their seed productivity in tashkent oasis, uzbekistan." e3s web of conferences. vol. 258. edp sciences, 2021. 24. khatamovich, yuldashov yakubjon, ubaydullaev farkhod bakhtiyarullaevich, and khatamov bakhramjon yakubjanovich. "features of productivity, ripening and germination of juniper seeds." american journal of pedagogical and educational research 10 (2023): 85-82. 25. bakhtiyarullaevich, ubaydullaev farkhod, ubaydullayev abbosjon azimjon ogli, and aripov xojiakmal xojiakbarovich. "characteristics of decorative and poisonous gas-resistant trees for the streets of tashkent." open access repository 4.02 (2023): 85-94. 26. ubaydullaev, farxod, bakhramjon khatamov, and abdulaziz majidov. "avtomobil yo'llarini ko'kalamzorlashtirishda tut (morus, nigra l) ko'chatlarini parvarishlashda mineral o'g'itlarni qo'llash va sug'orish me'yorlari." евразийский журнал академических исследований 2.4 (2023): 75-81. 27. isan ogli, alisher kholikov, kasimkhodjaev bokhodir kuchkarovich, and ubaydullaev farkhod bakhtiyarullaevich. "determining the influence of changes in the quantity, speed and composition of vehicles and highways in the city and the distribution of transport." american journal of pedagogical and educational research 10 (2023): 167-174. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 28 www.americanjournal.org changes in the integration and innovation of cultural tourism during the years of independence: historical analysis облоқулов достон ўктам ўғли бухоро давлат университети магистранти a b s t r a c t k e y w o r d s this article analyzes the role of museums and historical monuments in the development of tourism in the years of independence, as well as the ongoing reforms in this area on the basis of scientific sources. tourism, cultural heritage, museum, historical monument, tourism development. introduction tourism has been an important factor in the global integration of economic life in the last decade as a unique mechanism for the entry of countries into the world market. in turn, the development of the national tourism of uzbekistan will become a pillar of economic growth. central asia, including uzbekistan, was one of the oldest cultural centers. many cultural and spiritual centers, thousands of scientific works and historical monuments formed in this area for thousands of years are the rich cultural and spiritual monuments of our nation. uzbekistan is one of the leading places in the world with the abundance of cultural and spiritual heritage, rich and colorful and ancient. it should be noted that until today, 6 cultural heritage objects located in central asian countries have been included in the "list of world cultural heritage", 5 of them are located in the territory of the republic of uzbekistan. literature analysis on the subject (literature review) in the post-independence period, the legal basis for the restoration and promotion of cultural heritage and values was created in our country. in our national legislation, more than 10 laws on cultural heritage protection, presidential decrees, cabinet of ministers' decisions and other normative documents have been adopted. today, works of visual and folk art, archaeological and architectural objects, sacred shrines are preserved as examples of national cultural heritage in our republic. archeological excavations and found artifacts show that today the world's attention is being directed to uzbekistan in terms of cultural tourism. the literature created in this regard can be divided into two groups: group 1. local resources created during the years of independence american journal of business management, economics and banking volume 10 march, 2023 p a g e | 29 www.americanjournal.org group 2. foreign sources on the topic created in 1991-2020. research methodology the research work is based on the principles of historicity, chronological and comparative analysis methods. analysis and results the desire to learn about the customs, culture and lifestyle of different peoples and regions motivates people to travel. based on these factors, the cultural tourism industry is developing. for example, national items, national dishes, cultural-historical monuments that clearly reflect the culture of different peoples are seen as the most popular types of services in the field of tourism. today, many hotels try to introduce the culture and art of their homeland to foreign guests by displaying the creative works of local artists and sculptors. also, exhibition sales of works of art are organized in special halls of hotels. in addition, various popular national music and folklore dances are shown to tourists [1]. the organization of the factors of cultural appearance in museums and tangible monuments, studying the interests of tourists, creates positive processes [2]. having studied several processes of cultural manifestation, the demand and supply of services of different nationalities in the field of tourism gives the following views: in the period of economic growth, museums are considered a new social-political cultural center. currently, museums are experiencing the conditions of adapting to a certain environment in line with the changes and innovations in the market economy. in the course of such socio-economic updates, the museum should have the characteristics of imparting skills to people. on the other hand, museums should not be satisfied only with the promotion of historical heritage artifacts, but should also provide an understanding of modern artistic process experiences. the development of tourism museums promotes the historical heritage of the region, publicizes the names of existing historical cities and ensures the formation of museum marketing. the concept of modern museums should summarize the following points in a multifaceted way: the practical importance of educating young people in the spirit of patriotism by developing modern projects and programs within the framework of museum work; organization of exhibitions based on pictures of social life in the form and appearance of global problems and promoting them to the life of young people. the formation of tourism in museums and monuments is a widespread field, which provides detailed information about the history of different countries, peoples, nations, their cultural heritage, religion, customs and ceremonies, especially art, and also reveals various forms of productive recreation. the development of tourism it has a decent share in raising the country's economy and gaining social importance has found its basis as a result of scientific research conducted around the world in recent years. in order to make such research and scientific research more effective, it would be appropriate to organize the activities of museums in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 30 www.americanjournal.org international tourism today. this museum, acting as a real professional scientific center, sets its main task to collect and process information on the history and technology of tourism and to make recommendations on improving tourism activities based on this. in tourism, the main idea of the museum is to illuminate the culture and history of the regions, to create a complex idea, to cover scientific-popular and other traditional interests specific to the museum, but lastly, it also includes a collection of collections of this or that museum that is not specialized. in the creation of tourist museum products, the connection with the following basic process is taken into account: the interpretation of the cultural heritage of the region, the specific creative development (creative solution) of tourist museums, etc. n.a. nikishin, a famous russian expert on museology and cultural tourism, investigated this problem in detail and pointed out several important aspects that are visible in the development of the tourism museum [3]. among them: the transition of society to the post-industrial (industrialized) period, the development (growth) mobilization of modern people, the globalization of processes, and the problems of transition to modern society are also studied[4]. thus, according to n.a. nikishin, in the modern tourist complex, the museum can be seen at several levels: the symbolic value is produced, mainly interpretation and communication techniques lie; as a symbolic resource, to be an important potential creator; as a specific cultural product, managing the territory of society; providing a versatile product in the organization of regional economic development. proper formation of tourism services in museums determines the strategic direction of museum management and museum development. undoubtedly, tourism does not seem to be a traditional direction of museum activity. it appeared in world practice in the mid-1990s. conclusions and suggestions modern-looking plans in the form of innovations and concepts have been introduced within the fields of science and science-propagation. the term concept is derived from the latin word "conceptio" which means "concept", "main idea" and "primary thought". conceptual aspects in the theoretical and practical framework promote the generalization of basic concepts and ideas within cultural traditions based on the constructive principle. all these laws are being developed on a scientific basis within the scope of science and industry. the basis of the conceptual project is developed on the basis of knowledge, experience, scientific research, philosophical views and general worldview within the studied aspect. the creation and study of conceptual projects in the field of museology began to take shape in the 21st century. the main concept of the tourism museum is the structure of social and cultural views. the museum subject is the core of the museum. research and display of museum objects are required in new ways. the function of museum objects consists of attractive, informative and authentic views. the development of tourism in museums summarizes communicative, aesthetic, axiological and creative functions, while serving as a social and cultural institution in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 31 www.americanjournal.org the development of our society. the practical importance of developing tourism in museums is one of the important manifestations in the modern artistic process. list of references 1.моисеева н.к. стратегическое управление туристской фирмой. – м.: финансы и статистика. 2007. – с.40-41. 2.дмитриев м.н., забаева м.н. экономика и предпринимательство в социальнокультурном сервисе и туризме. – м.: юнити-дана, 2006. – с.14 3.музей и этнология: серия электронных изданий museum pro/ отв. ред. е.л.галкина, е.е.кузьмина, н.а.никишин .-м., 1997; вып.2.0. музей как социокультурное явления е.м. акулич // социологические исследование -2004-№10с89-92. 4.музей и этнология: серия электронных изданий museum pro/ отв. ред. е.л.галкина, е.е.кузьмина, н.а.никишин .-м., 2008; 5.makhmudovich, gulyamov komiljon, and ikromov muhammad anasxon hakimjon o'g. "development of children's artistic and creative abilities in the process of teaching uzbek folk applied decorative arts." web of scientist: international scientific research journal 3.5 (2022): 957-963. 6.gulyamov, k. m., and m. h. ikramov. "development of artistic and creative abilities of future teachers of fine arts through computer graphics." journalnx 7.06 (2021): 95-99. гулямов, к. м. "компетенциявий ёндашув асосида бўлажак амалий санъат ўқитувчиларини касбий фаолиятга тайёрлаш тизимини такомиллаштириш." сборники конференций ниц социосфера. no. 8. vedecko vydavatelske centrum sociosfera-cz sro, 2020. 7.gulyamov, komiljon makhmudovich. "decorative and applied arts of uzbekistan: deep tradition and development of the uzbek school." scientific forum: philology, iskusstvovedenie i kulturologiya. 2018. 8.gulyamov, k. m. "improvement of the system of preparation of future applied art teachers for professional activity on the base of a competent approach." sborniki conference nits sociosphere. 9.булатов, с. с., and к. м. гулямов. "формирование чувства патриотизма посредством общечеловеческих ценностей." устойчивое развитие науки и образования 10 (2017): 184-189. 10.гулямов, комилжон махмудович. "бўлажак тасвирий санъат ўқитувчиларини компьютерда график моделлаштириш асосида касбий тайёрлаш модели." учитель 3.4 (2022). 11.gulyamov, k. m., and h. n. arziqulov. "computer graphics as a means of forming students' professional competencies." the american journal of social science and education innovations 3.06 (2021): 104-108. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 32 www.americanjournal.org 12.гулямов, к. м. "моделирование режимов работы импульсных многоканальных преобразователей постоянного напряжения." политехнический вестник. серия: инженерные исследования 1 (2020): 29-33. 13.gulyamov, komiljon m. "improving system of future applied art teachers training based on competence approach." eastern european scientific journal 6 (2018). 14.гулямов, комилжон махмудович. "педагогические основы внедрения инновационных технологий в преподавание народного декоративно-прикладного искусства узбекистана." international scientific review of the problems of pedagogy and psychology. 2018. 20.гулямов, комилжон махмудович. "декоративно-прикладное искусства узбекистана: глубокие традиции и развитие узбекской школы." научный форум: филология, искусствоведение и культурология. 2018. 29-33. 21.alekseeva, i. v., et al. "gulyamov komiljon maxmudovich, tn qori niyoziy nomidagi o „zpfiti doktoranti (dsc), pfn, dots." sifat va samaradorlik kafolati‖: 115. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 117 www.americanjournal.org opportunities to increase efficiency through the use of innovations in livestock in farms 1. narinbaeva gulnora karimovna, 2. jalilov shokhjakhan kholbazar ogli, 3. nurmuhammadov islambek oybek ogli, e-mail: shoxjahon.jalilov@mail.ru, tel: +998942919339 1.independent researcher, tashkent state agrarian university, uzbekistan, 2 independent researcher, tashkent state agrarian university, uzbekistan 3 student, tashkent state agrarian university, uzbekistan a b s t r a c t k e y w o r d s the article presents the possibilities of increasing productivity by applying innovations in livestock farming. agriculture, innovation, economy, farm, food, nutritious crops, logistics, productivity, animal husbandry. introduction agriculture, especially animal husbandry, plays an important role in the sustainable development of the economy. in our country, meeting the needs of the population for livestock products, ensuring the availability of meat, milk, eggs, fish and other products in the markets is considered as one of the priority tasks. animal husbandry is an important component of the country's agriculture. appropriate and effective placement of livestock industries directly affects the positive solution of labor distribution in the republic. taking into account the natural and economic conditions of the regions and the market requirements, it is necessary to place and develop the branches of cattle breeding, sheep breeding, fishing, beekeeping, and duck breeding. because meat, milk, wool, leather, honey and other products are grown for food and processing industry enterprises in these industries. production and consumption of meat and milk per capita in the republic is below medical standards. it cannot provide the necessary amount and standards for the human body. therefore, the government of the republic has adopted large programs, laws, decisions and various regulatory documents aimed at the development of livestock breeding in the country, and is implementing a number of measures to implement them. materials and methods. the great achievements in agriculture are the result of well-thought-out and consistent measures implemented by our government, taking into account the specific characteristics of our republic and the accumulated rich experiences, as well as the best practices of world practice. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 118 www.americanjournal.org there are many branches of animal husbandry, such as cattle breeding, sheep breeding, poultry breeding, sheep breeding, fishing, and beekeeping. therefore, the main tasks of the development of these industries are to establish a solid feed base, to continuously provide livestock with various servitamin, protein-rich, nutritious feeds throughout the year, to properly organize breeding-selection work, from advanced work experiences and achievements in science. effective use and wide introduction of modern advanced technologies into practice. the dynamics of the increase in the number of cattle on farms in the republic of uzbekistan in 20172020 is presented in table 2. table 2 growth in the number of cattle on farms in the republic of uzbekistan in 2017-2020, thousand heads1 areas years 2017 year 2018 year 2019 year 2020 year year 2020 in 2020 compared to 2017 +,% karakalpakstan 31,6 45,8 50,8 55,2 23,6 175 andijan 39,3 41,7 46,6 53,4 14,1 136 bukhara 61,0 65,5 68,7 72,9 11,9 120 jizzakh 26,0 31,4 36,9 41,7 15,7 160 kashkadarya 59,4 61,1 67,4 74,3 14,9 125 navoi 24,7 24,6 26,2 33,2 9 134 namangan 23,5 21,5 21,8 22,4 -1,1 95 samarkand 63,2 67,5 76,3 77,2 14 122 surkhandarya 50,4 45,7 42,9 45,2 -5,2 89 syrdarya 29,0 22,6 21,6 24,3 -4,7 84 tashkent 60,1 70,7 79,3 76,5 16,4 127 ferghana 46,3 46,5 51,8 56,5 10,2 122 khorezm 61,3 60,2 59,4 61,7 0,4 101 total 575,8 615,9 662,2 708,3 132 123 according to the table, the total number of cattle in 2020 was 575.8 thousand and reached 708.3 thousand in 2020. in 2020, compared to 2017, the number of cattle increased by 23%. the annual increase in the number of cattle in the republic satisfies the population's demand for meat and dairy products, and provides industry with raw materials. the main reason for this is that the government of the republic brought cattle from abroad in order to provide livestock food products. about 46-47% of the gross agricultural product is grown in the livestock sector. about 90 percent of it is supplied by households. at the moment, the main attention is paid to the production ________________________________________________________ 1prepared based on the information of the state statistics committee of the republic of uzbekistan of ecologically clean products in cattle breeding. for this, it is important to preserve, store and care for them at the required level, that is, to create "comfortable" conditions for them. proper organization of the production of concentrate feed in our country and its delivery to consumers is an urgent issue of today. 90 percent of the meat and milk produced in our country is produced on farms. in order to improve the supply of concentrate feed to farms producing livestock products, it is american journal of business management, economics and banking volume 11 april, 2023 p a g e | 119 www.americanjournal.org necessary to organize fodder sales branches in the regions with the participation of feed producing enterprises, and to optimize the types of payment in the branches. livestock development is one of the first level tasks facing agriculture. to successfully solve this task, the following complex measures have been developed: establishment of a solid fodder base of livestock breeding and rational use of fodder; breeding of all types of livestock and poultry; improvement of breeding work in cattle breeding in order to increase the productivity of herds and to adapt cattle to feed on the basis of industrial technology; improving the use of veterinary services and artificial breeding services due to the expansion of the network of service points; personal assistant, organizing auctions for the sale of breeding stock to farmers and farms. expansion of micro-crediting possibilities of auxiliary and peasant farms to facilitate the purchase of cattle, creation of new breeds of livestock and improvement of existing breeds, development of theoretical and practical methods for management of various fields of livestock breeding, and on this basis, giving ample space to the work experience of advanced zootechnics and animal husbandry in the introduction of rational methods of breeding and feeding of livestock. it has been scientifically proven that about 60% of the increase in milk productivity of cows depends on the feeding factor. based on this, the demand for feed during the year is 30-35 centners of feed units for each conditional head of the population, 45-50 centners of feed units for breeding cattle, foreign 55-60 centners of feed for cattle of the mentioned breeds. on the basis of the achievements of science and advanced experience, to ensure that the yield of nutritious crops from each hectare of the main crop area is 6-7 tons of feed units, from intermediate crops to 4-5 tons of feed units and from repeated crops to 3-4 tons of feed units, a total of 8-10 tons of feed units necessary. in order to increase the productivity of food crops, it is recommended to use high-yielding varieties and hybrids as well as commercialize intensive technologies. table 3 the need for coarse and juicy feed and their supply in farms and agricultural enterprises,thousand tons2 types of food requirement practical % hay straw senage silos nutritious beets. green mass total feed (thousand t) conditional 1 head of feed (centner) 515 487 695 949 223.0 3738,2 6607.2 1507,0 21,7 350,9 1491,2 389,5 568,9 0,4 1690.5 4491 1011,4 14,5 68 306 56 60 0,18 45 67 67 67 it is of urgent importance to increase the elite, i-reproduction early and hybrid seeds of food crops and seeds of intermediate crops. in this regard, it is appropriate to strengthen the activity of the primary seed production of nutritious crops at nav-originators (scientific research institutes in the field), and to strengthen the material and technical base of farms specializing in the regional production of nutritious crops in all regions. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 120 www.americanjournal.org it is important to increase the amount of corn grown in the main and secondary fields. further development of selection-breeding work in sheep and goat breeding, improving the breeding and productivity characteristics of existing sheep and goat breeds, increasing high-yielding breeding flocks in breeding farms, and increasing the weight of calves in the flock are important activities. currently, one of the main factors of increasing livestock production is the wide implementation of modern advanced technologies in personal assistants, farmers and farms. introduction of modern technology and scientific achievements in the field for the ____________________________________________ 2prepared based on the information of the ministry of agriculture of the republic of uzbekistan comprehensive development of animal husbandry, increasing the level of use of equipment, raising the quality of human capital is one of the important issues of today. to sustainably ensure the needs of the population of the republic for food products, to fill the domestic consumer market with food products produced in our country, to rapidly establish compact processing enterprises equipped with modern high-performance equipment and technology, mainly in rural areas, on this basis, new work coordinate the establishment of new enterprises using mini-technologies and compact equipment for the processing of meat and dairy products, as well as service points for the preparation of raw milk, in the regions of the republic in 2017-2022 in order to create places, provide more people with work, and increase their income and well-being . a good result is that the activities related to the processing of meat and dairy products on an industrial scale and the production of finished products are carried out only by business entities organized in the form of a legal entity. the level of milk production can be increased by 30% by artificial insemination with productive bulls. calves obtained as a result of artificial insemination can reach a live weight of 410-450 kilograms in 15-16 months if intensively fed from the age of 7-8 months, which increases the level of meat production by 30%. . equipping soft feed factories with innovative technologies for the production of quality feeds can reduce energy and labor costs by up to 30 percent. this, in turn, leads to a decrease in the price of fodder. the availability of quality and affordable feed increases the purchasing power of economic entities. livestock fed with high-quality feed will increase productivity, save heifers' calving time, and reduce the cost of female bodies during the period before parturition. an investment in a single service sector in animal husbandry has an impact on the overall development of the sector. the application of innovation to the livestock processing industry creates an opportunity to produce high-quality exportable products. application of innovative technology reduces energy consumption and manual labor costs. product export increases the company's income and creates an opportunity to expand production and provide financial incentives to employees. such an environment is also formed in product suppliers. the norm of daily use of carbon mineral nutrient supplement is given in table american journal of business management, economics and banking volume 11 april, 2023 p a g e | 121 www.americanjournal.org table 4 the rate of daily use of carbon mineral nutrient supplement № indicators 1 head of cattle in 1 day (grams) 1 for large horned cattle 275-570 2 calves from 1 to 6 months 65-130 3 calves from 7 to 12 months 150-270 innovative technologies are used in livestock development in farms. carbon mineral feed supplement "felutsen" is used in the feed. an additional gain of 80.3 kg was achieved when cattle were fed on a normal feed ration and 95.8 kg of additional growth was achieved when fed with feed supplemented with umo. through the comprehensive innovative development of animal husbandry, it is possible to increase the amount of production in animal husbandry and significantly reduce the cost of products. table 6 analyzes the performance of cattle fed with carbon mineral feed additives. table 5 performance of cattle fed with carbon mineral feed additives (per head of livestock) № indicators in a normal feed ration feed with added umo additives the difference (+; -) 1. additional growth (kg) 80,3 95,4 15,5 2. cost of goods sold. (soum) 521950 620100 98150 3. cost (soums) 438580 505620 67040 4. profit (soum) 83370 114480 31110 5. rate of return (%) 19 23 when the cattle were fed on a normal feed diet, the yield rate was 19 percent, compared to 23 percent when the cattle were fed with umo additives, and the yield rate increased by percent when the cattle were fed with umo additives. as a result of innovative technologies, livestock efficiency increases, the profit of the farm increases, the cost decreases, and synergistic efficiency increases. conclusion: to ensure economic stability in animal husbandry, to try to spend every soum rationally and appropriately, that is, to save material, money and labor costs, thereby reducing the cost of the products grown, to use all the means of production available in the animal husbandry network effectively throughout the year, to ensure that all work is done at the right time, with high quality implementation of productive breeds of livestock, reducing the disparity between the prices of industrial enterprises used in agriculture and agricultural products, increasing the level of mechanization and automation of production processes and reducing the cost of live labor as a result of the introduction of new cost-saving techniques, innovative and effective technologies , zooveterinary activities should be carried out qualitatively and efficiently. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 122 www.americanjournal.org list of used literature 1. g'.a.samatov, j.yo.yodgorov, i.b.rustamova, organization of agricultural production. t.: tosh. dau, 2005. 2. g'.a.samatov, i.b.rustamova, u.a.sheripbaeva, agricultural economics and management. t.: "cholpon" 2012. 3. current state of production of animal production in the republic of uzbekistan" international journal of. international journal of research culture society: india, 2019. 4. n.s.dexkanova, sh.x. jalilov, development of multi-profile farms in uzbekistan. bulletin of modern science. moscow, 2016. 5. g.k.narinbaeva, sh.x. jalilov, z.t. sidikov. the current state of fruit and vegetable growing development in the republic of uzbekistan. asian journal of research in business economics and management may, 2022. 6. g.k.narinbaeva, sh.x. jalilov, m.u.mirzaev, d.z.khaitbaeva, the role of farmers in the economy and prospects for their development in uzbekistan. american journal of interdisciplinary research and development, june, 2022. 7. z.t.sidikov, g.k. narinbaeva, sh.x. jalilov, organizational-economic possibilities of increase of employment of rural population in uzbekistan. world economics & finance bulletin (wefb) january, 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 188 www.americanjournal.org autoclave for modern building materials working in the method kurbanov a. t. termiz state university a b s t r a c t k e y w o r d s for the fast and high-quality production of modern construction materials, it is necessary to use different heat treatment devices for various structural elements, because they are required to serve for a long time without losing their strength under the influence of external forces. the article presents calculations on the methods of heat treatment of building materials by the autoclave method. avnoclave, structure, operation, constructive calculation, heat calculation, heat consumption, lost heat, heat balance. introduction: the autoclave method is a special method of heat treatment of concrete, which is used to accelerate the hardening of concrete. in contrast to the steaming method, the hardening of concrete in autoclaves occurs at a pressure of 0.9-1.3 mpa and in saturated steam conditions of 175-191 °c. later, it was confirmed that the efficiency is even higher when the temperature of water vapor rises to 200-225 0с. to increase the temperature, instead of water vapor, heated steam and steam-gas environment can be used. in the conditions of the climate of uzbekistan, the autoclave method is widely used in the preparation of cellular concrete. as a result of the autoclave treatment, the hardening of concrete is accelerated due to the acceleration of the hydration of the binding elements, and in addition, new cementing substances are formed: calcium and magnesium hydrosilicates. in conditions of high temperature and high vapor pressure, synthesis of these compounds is formed, and in other cases they do not combine with each other. limesilica binders are often autoclaved. also, lime-slag, lime-ash and other chemically active substances are processed by autoclave technology. initial data for calculation annual productivity of the workshop, year m³; volumetric density of dry concrete.kg/m³; working pressure of the autoclave, mpa; temperature, t °c; initial temperature of products, tn, °с; the number of products in the wagon, pcs product volume em, m³; mass heat capacity of dry concrete. ccb, kj/kg k; heat capacity of water cc = 1 kcal/kg.-4,168 kj / kg k; (1 cal=4.1868 joules. water vapor 0.36; air 0.31; kcal / (m3 °c)); initial humidity of products, wn; final humidity of products, wk; temperature in the workshop, tu, °c american journal of business management, economics and banking volume 12 may, 2023 p a g e | 189 www.americanjournal.org design calculation of the device in order to calculate the design of the device, according to the manufacturer's information, we accept an autoclave operating on the basis of the technology with the following technical characteristics: working length, l, m. diameter d, m. working pressure p, mpa. the mass of the autoclave in kg. width of wagon wheels mm. the number of wagons in one autoclave, pcs. the number of products in the wagon n, pieces general dimensions of the autoclave: length mm. width mm. height mm. the number of wagons in the autoclave, pcs n = l avt / 1v where lavt is the length of the autoclave, m lv– length of the wagon, m autoclave capacity, m3 ea=ev∙n here, ev is the capacity of the wagon, m3 n – the number of wagons in the autoclave, units. filling the autoclave with products k=(ea /vavt)100% here, vavt is the capacity of the autoclave, m3 watt =( p ∙d2 /4)l, m3 here, d is the diameter of the autoclave, m l is the working length of the autoclave, m the number of autoclaves that ensure the annual productivity of the workshop m =(ryil tts / t∙s∙ea∙kisp), here is the annual productivity of ryil workshop. ts is the duration of the autoclave, 8-24 hours. c number of shifts per day c, 2-3 t– the number of working days per year, t=249 days kf – level of autoclave use, kf=0.9–0.95 тs = t1 + t2 + t3+ tsq here tqosh autoclave loading, unloading, cleaning time, min. we take 3 autoclaves to ensure the specified work. heat calculation of the device in order to calculate the heat of the autoclave, it is necessary to determine the heat and steam consumption of cellular products. it consists of inlet and outlet parts and is determined by the solution of the heat balance equation. the heat balance of the autoclave is determined for its service life and the entire mass of loaded products. heat input, kj / period steaming q = dist∙h" here h"enthalpy of working steam kj /kg; american journal of business management, economics and banking volume 12 may, 2023 p a g e | 190 www.americanjournal.org dist – steam consumption for the period, kg / period; since its value is unknown, it is determined from the heat balance equation. heat consumption, kj / period to increase the dry mass of concrete from the initial temperature to the maximum q1=mq. squr. (short–tb) here is mqur. the mass of dry concrete in the autoclave, kg squr. mass heat capacity of dry concrete, kj / kg k squr = 0.75 kj / kg k, tyuk is the maximum temperature of heating products, °с tb – initial temperature of products, °с mqur= yqur∙n∙v, kg here n is the number of products in the autoclave, pieces v volume of one product, m3 yqur is the density of dry concrete, kg/m3 references 1. перегудов в.в. теплотехника и теплотехническое оборудование m: стройиздат, 1990. 2.maxмудова н.a. методические указание для выполнения курсовой работы по предмету тепдотехника и теплотехнические установки teplotex. taси. t., 2016. 3. maxmudova n.a. issiqlik texnikasi va issiqlik texnik uskunalari fanidan kurs loyihasini bajarish uchun uslubiy ko’rsatma. taqi. t., 2016. 4. uzrst 17177-94 issiqlikni saqlovchi qurilish ashyolari va buyumlari. 5. uzrst 686-96 qurilish. issiqlik muhofazolovchi ashyolar va buyumlar. 6.abduhalimzoda, abdurahimov abdukarim. "technology of preparation, transfer and placement of filling mixtures." galaxy international interdisciplinary research journal 10.11 (2022): 1098-1101. 7.абдуҳалимзода, aбдураҳимов абдукарим. "суперпластификатор қўллаб тўлғазувчи қоришмаларнинг хоссаларини яхшилаш." spectrum journal of innovation, reforms and development 8 (2022): 250-254. http://www.tarazinfo.kz/cgi-bin/book/book.cgi?mode=11&idavt=3429 american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 67 www.americanjournal.org drainage management issues in uzbekistan t. atakulov deputy director of the higher school of business and entrepreneurship a b s t r a c t k e y w o r d s the article deals with the issues of the impact of melioration on agricultural lands. the melioration conditions of the lands of the regions of uzbekistan are analyzed. practical recommendations for increasing farmland with the help of optimal management are given. basin irrigation systems authority, state water special contract unitary enterprises, hydro-geological ameliorative expedition, republican irrigated land amelioration fund, office of governor, ministry of agriculture and water resources, ministry of finance, water consumers association introduction uzbekistan is a landlocked country with an area of 447,400 km2, larger than most western european countries, and comprised largely of desert or semi-desert. the population was about30 million in 2013, over 60% of whom live in densely populated rural communities. administratively, the country is divided into 12 regions and one autonomous republic of karakalpakistan. with an educated population and a growing young labor force, it has significant economic potential in the central asian republics (united nations 2008). uzbekistan’s climate is continental, with hot, dry summers and short, extremely cold winters. according to the regional hydro-meteorological station, the annual evaporation rate, for example, in bukhara (about 1,600 mm), greatly exceeds the annual rainfall (about 150–200 mm). thus, large-scale irrigation for cultivated crops is essential for agriculture. contributing to 19% of overall gross domestic product (gdp), agriculture still remains an important sector for the uzbek economy and, most importantly, provides almost 40% of the rural population with employment (world bank 2013). as a result of the country’s arid climate, almost all agriculture depends on irrigation. about 97% of crop production is carried out on irrigated land. there is an estimated 4.2 million ha of land suitable for irrigation, a figure significantly larger than in other four central asian republics (0.77 million ha in kazakhstan; 0.42 million ha in kyrgyzstan; 0.72 million ha in tajikistan; and 1.73 million ha in turkmenistan). cotton is the main cultivated crop in the country. uzbekistan ranked 5th among ninety cotton-growing countries and 2nd largest exporter in the world (djanibekov et al. 2010). additionally, wheat is considered to be essential to achieve food security and is the second largest irrigated crop. other significant irrigated crops include grains (corn, barley, rice and oats), fodder crops, and fruits (grapes, apples) and vegetables (potatoes, tomatoes). as of end-2013, around 43% of cultivated land is devoted american journal of business management, economics and banking volume 10 march, 2023 p a g e | 68 www.americanjournal.org for cotton, about 37% for grains (including wheat), 17% for fruit and vegetables, and the remaining for fodder crops (e.g. alfalfa, barley, maize). it is important to note that during the soviet era (1920-1991) large-scale irrigation schemes were constructed to cultivate agricultural crops (mainly, cotton) in order to secure soviet union’s “cotton independence”. consequently, farming was predominantly linked to cotton production, which required intensive labor work force and application of irrigation water. production plans of the established kolkhoz and sovkhoz farms, as well as the product prices were set by the state (trevisani 2010). even after its independence from the soviet union, uzbekistan has retained the system of state planning for main agricultural products: cotton and wheat. local governments regulate the production outputs and in the beginning of each vegetation period (april to september) calculate a minimum amount that farmers need to produce. in the case of cotton, the state is the main buyer of the cotton production. in the case of wheat, farmers must deliver a quota to the state and are free to sell the rest in the market. the main idea behind this strategy is that the cotton serves as “cash crop” and wheat is to achieve “food security”. methods and analysis the main focus of the present analysis is to understand how drainage canal maintenance (nature-related physical transaction or action) is organized in the irrigated agriculture of uzbekistan. more particularly, “an activity of removing weeds and silt from the canal (i.e. maintaining drainage canals)” will be taken as a transaction, for example, as it may have positive or negative effects on other actors. for example, carrying out drainage canal maintenance may improve the quality and quantity of water for users located downstream of the canal as well as the rivers. by contrast, leaving removed trash alongside of the canals, which is a regular practice in uzbekistan, may have a negative consequence for local residents. furthermore, odor and noise caused by maintenance activities may cause environmental problems as well as disturbances for locals residing in the vicinity. specifically, this particular transaction may directly or indirectly affect actors such as farmers, local households, and the state who is interested in crop yield increase, particularly in cotton and wheat (table 1). table 1: potential transactions involved in the activities of drainage management transactions involved actors identify possible areas for maintaining drainage ditches expedition ↔ bisa ↔ khakimiyat determine which ditches need to be maintained expedition ↔ mawr ↔ fund ↔ minfin establish contracts for maintenance fund ↔ duk carry out canal maintenance (remove weeds and silt) duk ↔ farmers ↔ wca ↔ bisa transport weeds and silt to landfill areas duk ↔ farmers ↔ wca source: own illustration. it is important to specify the characteristics of transactions and their influences on drainage performance. hagedorn (2002, 2008) suggests that properties of nature-related transactions resulting from attributes of an existing production system (asset specificity, frequency, and uncertainty) as well as a particular ecological system (modularity and functional interdependence, excludability, rivalry, separability, complexity, measurability, irreversibility, legitimacy, heterogeneity, and variability) have american journal of business management, economics and banking volume 10 march, 2023 p a g e | 69 www.americanjournal.org to be taken into account in the analysis. definitions of the individual properties of relevant transactions, based on hagedorn (2002; 2008) and thiel et al. (2013), are provided below: asset specificity: this is related to an individual transaction. in the context of natural resources, asset specificity requires a specific site, capital and knowledge investments to realize specific transactions. frequency: this means to what extent a certain transaction takes place relatively frequently or not. hagedorn (2002) clarifies that, in socio-ecological systems, most transactions occur with relatively high frequency. for recurrent transactions, transaction costs are distributed over many transactions and can be saved due to learning effects, economies of scale/scope and trust. as a result, with high frequency transactions it “is easier to invest in specialised governance structure[s]” (hagedorn 2002:6). uncertainty: this refers to the degree of certainty about the characteristics of specific transactions (affected actors, costs and benefits) and is related to whether it is difficult for actors to define transaction partners as well as costs and benefits. modularity and functional interdependence: these are the key dimensions related to different types of nature-related transactions. the assumption is that physical systems are subject to social construction and that humans decompose these complex and interconnected systems into modules. yet an inappropriate modularization can result in unnecessary transaction costs. thus, the questions of how a module can be defined in terms of physical transactions or governance arrangements and how the boundaries of modules are delineated are important. excludability: this is the extent to which actors can be prevented from obtaining benefits from a specific resource, based on the mechanisms and costs of exclusion from access to natural resources and environmental goods within given technological boundaries. rivalry: the degree of rivalry between actors regarding a particular resource implies the level and scale of social dilemmas they may face. it also influences society’s incentives to overcome such social dilemmas in coordinating common pool resource management solutions. separability/jointness: this refers to the possibility of distinguishing which individual transactions cause which outcomes and implies whether a transaction can be separated from other transactions in order to analytically establish a transaction–outcome relationship. complexity: this refers to the degree to which a transaction is complicated, meaning that it is difficult, impossible, or costly to identify transacting partners and costs and benefits, which are often difficult to clearly identify those factors within natural-resource contexts due to the complexity of the causal relationships of ecological systems. this may result in a high probability of opportunistic behavior requiring coordination. measurability: this means whether the costs and benefits from a certain transaction or activity can be identified, assessed and measured with regard to all transacting partners. this often depends on the availability of necessary technology and knowledge to identify such costs and benefits. irreversibility: this refers to whether the outcome of a transaction can be reversed or not. irreversible transactions imply a need for greater attention and coordination. legitimacy: this relates to whether a transaction is “compatible with the normative views of actors and groups concerned by or even involved in the decision making and implementation activities” (hagedorn 2002: 8). heterogeneity and variability: this refers to the spatial and temporal dimensions of a transaction (“site and situation specificity”). the effects of transactions and their related costs and benefits depend on specific spatial and temporal dimensions. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 70 www.americanjournal.org the main focus of this analysis is to understand how drainage canal maintenance (a nature-related physical transaction) is organized and what kinds of transactions it involves. the following section operationalizes properties of this transaction that are relevant to this work. since the drainage canals pass by farmers’ and households’ fields, where the exclusion to access it quite difficult but, at the same time, depending on drainage canal capacity there may be a strong rivalry among its users, we may consider it as a typical common pool resource. the empirical studies outlined here corroborates this theoretical assumption, indicating the difficulty of excluding non-contributors involved in the maintenance, due to the social and natural structure of the canal. a drainage canal at the on-farm level has been traditionally under the management of farmers, with each farmer able to withdraw resource units (i.e. water) and benefits from its consumption in the case of water scarcity. although it is possible to sanction free riders, it has not been very feasible, as it involves relatively high transaction costs, such as coordinating and monitoring of individuals who do not comply with local rules. since the infrastructure’s capacity is finite, there is a strong rivalry among different resource users to benefit from its use. naturally, the transaction of cleaning such a drainage canal requires some knowledge, site, and capitally fixed, that is asset-specific, investments (machinery). generally, cleaning drainage ditches is moderate in frequency because of the recurrence and seasonality of the transaction. it is relatively certain that carrying out drainage maintenance would result in improved water quality and quantity to local farmers and households. this particular transaction is non-separable due to the jointness of the production as no other additional activities or actions are involved at the intermediate level, as removing weeds and silt from drainage canals is directly related to the dilemma of cooperation. traditionally, elderly and respected people would call for community labor mobilization (khashar) to collectively remove weeds and silt, using gardening tools, such as hoes, shovels, spades, rakes and trowels. however, the recent change in reforms and implementation of the republican irrigated land amelioration fund to invest in local drainage indicate that most drainage canals require physical capital (such as an excavator or bulldozer) to remove weeds and silt, an aspect of the complexity of the system. the state water special contract unitary enterprises (duks in uzbek) organize these activities under state financing (picture 1). the timing of maintenance is determined by the fund and usually does not depend much on great mobilization of human labor, as the rented machines sufficed to do the job. generally, variability in terms of the timing of the transaction is quite low. it can be said that this particular transaction is non-heterogeneous in terms of spatial variation, meaning that drainage canal maintenance has no major implications for wider ecosystems. additionally, the costs and benefits emerging from maintenance are measurable, meaning that they can be identified and evaluated. during times of water scarcity, water is lifted using electrical pumps for irrigation using drainage water. as a result, this particular transaction is also reversible but bears certain costs, as the users can benefit from alternative sources, such as irrigation canals. since resource system is complex and very difficult to divide into different modules, it can be classified as having a relatively high degree of modularity and decomposability. finally, due to the state intervention in drainage management, the state has more legitimacy to sanction various actors in accessing the drainage canals, when necessary. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 71 www.americanjournal.org picture 1: excavators belonging to the state water special contract unitary enterprise (duk) in bukhara undertaking drainage maintenance activities drainage benefited from massive investment during the soviet era (bucknall et al. 2003). since declaring its independence from the soviet union in 1991, the situation in the country has worsened considerably, meaning that investment in drainage declined (dukhovny 2007). maintenance has been repeatedly postponed, and many drainage systems have reached the stage of advanced decay. as a result, most areas suffer from salinization and waterlogging. during the soviet era, due to the overarching political objective of boosting the soviet union’s economy, the ministry of land reclamation and water resources of the union of soviet socialist republics (ussr) became involved in the expansion of irrigated areas. as a result of this expansive policy, an additional 3 million ha of land came under irrigation. as such, by 1990, the total irrigated lands of uzbekistan accounted at 4.2 million ha (khamraev et al. 2011). dukhovny (2007) reported that the expansion of irrigated areas and the intensive irrigation water use for crop production during ussr led to the emergence of salinization issue. thus, large-scale irrigation projects were concentrated on drainage-irrigation-reclamation development. by the beginning of the 1990s, almost 2.9 million ha of irrigated lands in uzbekistan were connected to drainage systems (ibid). due to the decline in investment in irrigation projects after the break-up of the soviet union, national governments as well as local farmers were unable to sufficiently invest in drainage management. unlike in the irrigation systems where the state water agencies continued to invest in inter-farm irrigation canal management but less investment in on-farm irrigation canal management by farmers, in the drainage system both inter-farm and on-farm drainage ditches received almost no attention. as a result, the conditions of drainage canals were in poor situation. undp (2007) study assessed the maintenance level of the drainage infrastructure throughout uzbekistan and concluded that more than 50% of ditches require reconstruction or repair. deterioration of drainage infrastructure resulted in widespread soil salinization and waterlogging. for example, bucknall et al. (2003) have reported that the problem of soil salinity is particularly acute in the areas closest to the aral sea, meaning that about 90-94% of the land in the karakalpakistan, khorezm and bukhara regions of uzbekistan is salinized to varying degrees. moreover, salt content in drainage water in those areas may reach up to 6 g/l (undp 2007). since independence, a lack of maintenance of the irrigation and drainage network, application of excessive water by farmers and water shortages caused both by drought and the redirection of water american journal of business management, economics and banking volume 10 march, 2023 p a g e | 72 www.americanjournal.org resources to hydroelectric power generation have caused a decline in land productivity and increased in the salinity problem. despite scale of works growing with years, a meliorative condition of the irrigated land is a big concern. from all volume of the irrigated land about 50 percent are salted in various degrees, and about 19 percent is oversalted, over 23 percent concerns a category of the land with low bonitet (low soil saline). a big part of the land with an unsatisfactory meliorative condition is in the republic of karakalpakstan, khorezm, bukhara, dzhizak, sirdarya, ferghana and other areas of uzbekistan. prior to the reform, about 338 thousand in hectares (8 %) of irrigated land in uzbekistan were in unsatisfactory condition due to poor management of irrigation and drainage networks, including about 258 thousand hectares (6 %) due to high levels of subsoil waters (bogging), soil salinity and high mineralization of subsoil waters, 271 thousand hectares (6,3 %) because of a lack of irrigation water and deterioration of an irrigation network. the basic part of the meliorative-unsuccessful land is located in the republic of karakalpakstan (110,400 ha), bukhara area (46,800 ha), kashkadarya (30,600 ha), syr-darya (43,600 ha), ferghana (20,200 ha) and khorezm (28,600 ha).on the balance of operational water economic organisations under mwar, there was in total 40,5 thousand in km of meliorative system, including 31,6 thousand in km of open collectors and 8,9 thousand in km of the closed horizontal drainage, from which unsatisfactory conditions were 11,2 thousand in km (35 %) and 1,8 thousand in km (20 %), respectively. also on the maintenance of operational water management organisations under mawr there were 3345 units of meliorative wells, from which efficiency of 1325 wells was lowered twice, including 416 wells. in separate zones, 96 meliorative pump stations with 278 units, from which 24 units were maintained over the service life and require replacement. on the balances of water consumers associations, there were about 71,5 thousand in km opened and 28,1 thousand in km of the closed horizontal meliorative network, from which about 23,5 thousand in km (32 %) and 6,7 thousand in km (23 %) were in unsatisfactory conditions. improvement of meliorative condition of the land, increase of their fertility was the major reserve and the defining factor of intensive development of agriculture. figure 1: percent of soil salinity prior to the implementation of melioration fund in uzbekistan, by region source: mawr. ecological and public health in rural areas of uzbekistan was worsening, with 50% of fields suffering from soil salinity (qadir et al. 2009) as well as high rates of asthma, cancers and the increase in infant american journal of business management, economics and banking volume 10 march, 2023 p a g e | 73 www.americanjournal.org mortality particularly in the aral sea zone (groll et al. 2013). the uzbek government recognized that the main reason for these problems were the deterioration of irrigation and drainage systems. bucknall highlighted that drainage systems were in worse shape than irrigation canals (bucknall et al. 2003). properly functioning drainage systems were required to improve agricultural fields that experienced high soil salinity and waterlogging issues. the government took the first step of improving the drainage systems with the cabinet of ministers’ decree no. 3932 dated on october 29, 2007 through the establishment of the republican irrigated land amelioration fund, which is allocated to the ministry of finance (minfin) for maintaining and rebuilding large scale inter-farm drainage systems (big canals, big drainage systems and big pumps) as well as pilot-testing in some regions to clean, maintain and rehabilitate drainage canals managed by local water consumers associations (wcas). in accordance with the decree, the main source of channeling money should come from: i) the single land tax paid by the rural individuals producing agricultural products; ii) state funds; iii) privileged credits from international financial organizations and international banks; and, iv) various national and international grants. the total amount of the fund exceeded uzs 750 billion (or more than us$400 million) for the period of 2008-2012 (data received from the ministry of agriculture and water resources of uzbekistan in 2013). during this timeframe: 1) about 1.2 million ha of irrigated land’s ameliorative conditions were improved; 2) severely and moderately salinized irrigated lands were reduced by 81,000 ha; and 3) contaminated groundwater tables were reduced to an acceptable level in 0.8 million ha of irrigated land throughout the country (ibid). the follow-up program on the improvement of irrigated agricultural fields with reference to drainage systems was approved on the 19th of april 2013 with the president’s decree no. 1958 for the period of 2013-2017. moreover, the cabinet of ministers’ decree no. 39, approved on 24th of february 2014, provides specific tasks to be undertaken during the program implementation. using its centralized budget, the state is active in investing fund in the maintenance and rebuilding of drainage systems, including at the on-farm level. according to the ministry of agriculture and water resources (mawr) of uzbekistan representative, “drainage canals should have been cleaned and maintained by farmers at the on-farm level. however, since farmers failed to do so, the quality of most agricultural lands had started to deteriorate. some lands had been abandoned. presently, through the republican irrigated land amelioration fund the state is financially supporting drainage canal maintenance”. box 1 provides a detailed description of the process with drainage management. box 1: a process of drainage maintenance in uzbekistan each region (oblast in russian) has regional hydro-geological ameliorative expedition with district-level representatives on the ground. the district-level expedition carries out field visits twice a year (e.g. april and october) to identify possible areas for cleaning drainage systems and submits application with the signature of local district governor to the regional office. the regional expedition defends its application at the republican irrigated land amelioration fund. then, with the decision by the fund’s council, the fund will allocate money starting from the new calendar year. once the decision on cleaning particular drainage ditch is done, the fund initiates the maintenance of the selected ditch through regional/district-level state water special contract unitary enterprises (duks). local interviews with farmers’ groups revealed that wcas do not pay for cleaning drainage ditches to the duks but informally, provide food (lunch or dinner) for the driver of the machinery. it is important to note that not all drainage canals are included into the fund’s program. it is decided in the ministry of finance depending on number of applications received and the available budget. wcas and local households are formally still in charge of maintaining drainage systems at the on-farm level. if the association is successful for including its territory to the fund’s program, then, it might have potential benefits of improving crop productivity and rural income. in terms of the organizational structure of the expedition, at the regional level, they are monitored by the basin irrigation systems authority (bisa). however, they directly report to the division of land amelioration, which is functioned under the department of water resources at mawr. apart rom drainage aspect, the expedition is in charge of conducting field-level soil analysis to determine the amount of water for leaching american journal of business management, economics and banking volume 10 march, 2023 p a g e | 74 www.americanjournal.org according to decree no.3932 for 2008-2012, more than 3,144 km of main, inter-district and interfarm collectors were planned to construct and reconstruct whereas 62,784 km of drainage networks were planned for maintenance. the size of the state investments into activity of fund of meliorative improvement of the irrigated lands annually grows. figure x below shows the increase of state investments in drainage managements. fig. 2. dynamics of the fund budget for 2008-2014. fig. 3. different sources of financing the fund activities (2008-2014) american journal of business management, economics and banking volume 10 march, 2023 p a g e | 75 www.americanjournal.org considering the fact that the country loses us$ 1.7 billion annually (or about 8% of gdp) due to inefficient water resources management, and the annual decrease in agricultural production is esti¬mated to be in the order of us$ 2.0 billion according to various estimates it is hoped that the efforts spent under this program will be a base and a starting point for the creation of this strategy (undp). as part of this study, the on-site researcher conducted interviews with experts working in the area of irrigation and drainage management in uzbekistan. in particular, the head of dispatcher fergana main canal, representatives of mawr as well as minfin, and an expert from the irrigation and water problems research institute under the tashkent institute of irrigation and melioration (former saniiri) during may-november 2014. in total, five experts were interviewed. this section is mainly based on their perspectives and the data they provided regarding the drainage management reforms. according to the head of dispatcher ferghana main canal, for instance, the fund was established under the minfin to improve drainage systems including at the on-farm level. it does not maintain some parts but, systematically the whole part of a drainage canal. the interview with a representative of the minfin corroborated this statement highlighting that the fund is targeting towards systemic approach, meaning that if annually 240-250 projects are carried out in the country, the fund is trying to cover the whole system of on-farm and inter-farm drainage canal maintenance. during the interviews, it was mentioned that farmers do not pay for maintenance but if some farmers offer food for drivers of agricultural machinery, that is generally appreciated. at the moment, however, there is no mechanism regarding who shall continue with maintenance once duks maintain and clean those canals. there is a general understanding that wcas should take over maintenance responsibility after it has been maintained by state funding. meanwhile, there were few criticisms regarding the performances of drainage maintenance. for instance, saniiri expert reported that generally, by may 15 of each year, districts and regions should prepare a plan for maintenance. these plans were mostly done by expert views and not the real measurements or scientific proof. according to the expert, “the fund officials think that if a certain place is cleaned, it will have definite impact. but that is not the case always”. moreover, the expert highlighted that “mawr has hydro-geological ameliorative expedition in each region and district. they should establish a monitoring system to observe how the situation is changing during the implementation of drainage canal maintenance, meaning that how it was before and how it has changed overtime. they take some small parts of the channel, clean it, and after harvest in the nearby, they measure the effectiveness with slight higher yields. however, there is not scientific prove or effectiveness of this work yet. there should be a clear mechanism to prove that this initiative works perfectly and the investment improves socio-ecological and economic status in the vicinity. the fund conducts systematic cleaning without measuring its effectiveness”. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 76 www.americanjournal.org fig. 4. percent of soil salinity after the fund implementation, by region according to the undp (2010) analysis, the fund has paid little attention to “softcore components” that are listed in its mandate. this is because it has little or no capacity to address these activities despite having a mandate to do so. predesign survey has been carried out by experts of hydro ameliorative expedition who reiterated that the absence of qualified educated personnel and lack of sufficient experience in state melioration organizations do exist. the same problems exist in project design organisations. another factor affecting the quality of the design process, hence the financial aspects is the unbalanced distribution of the workload during the year. this is exacerbated by short deadlines. saniiri identified 20-30 years ago optimum periods for constructing i&d networks during vegetation and non-vegetation seasons. however, irrigation and drainage network’s mode of operation has been altered due to changes in the structure of crops. therefore, now it is required to develop relevant regulations, which would enable to determine optimum time limits. the construction period established by the state committee on architecture and construction is not applicable for land reclamation facilities either. the length of execution phase is to be defined following a tender procedure. in the former soviet union reclamation works were done within the period starting from august till december. now a contractor is forced to start its activities straight after the tender, whereas climatic and environmental conditions may adversely affect the expected results. despite a big number of wcas currently registered, the question of their sustainability is still of paramount concern. the majority of wca’s exist only on paper and are not able to provide any services to their members. the problems of wua’s are largely non-payment of membership fees, lack of required technical water management equipment, shortage of knowledge and skills of both management and members, and the persistent control/interference of local authorities into the water american journal of business management, economics and banking volume 10 march, 2023 p a g e | 77 www.americanjournal.org distribution process. farmers quickly form the opinion that the wca is yet another quasi-government structure designed to extract money from them. the breakup of shirkats into private farms has greatly increased the complexity of the wca’s tasks and they are struggling to carry out their role as intended. it is in the interest of the fund to support and promote effective management of the wca’s in order to achieve its objectives. it is difficult to see how the fund could achieve it’s mandate without the active co-operation of well organized and effective wca’s. however, at present the fund has no mechanism to provide support to wcas. it has the mandate to attract donor funding, but currently the fund needs to organize this function and develop it in the future. the scope of work in rehabilitation is simply too large to be funded solely from the state budget. donor funding is essential if the fund is to carry out its mandate properly. the biggest problem for donors is the absence of a standardized method of project appraisal where costs/benefits and social and environmental impacts of projects can be assessed and ranked on a comparative basis. the main lack of existing system of financing of carrying out meliorative actions and maintenances of meliorative and water economic systems have been: absence of direct dependence between system of financing and efficiency of actions conducted; gap between the centralised financing of actions for radical improvement of the land and possibilities of economy on their rational agricultural development and use corresponding to increase of level of manufacture conducting; distortion of self-economic indicators of the cost price, profitability of manufacture on the reclaimed land at the expense of granting means to economy, low rates of a loan payment, free use of natural resources. as a result the selection of the most important and efficient objects of melioration was difficult. the situation created obstacles for the most efficient allocation of investment. the objective assessment of alternative options of the resources utilisation was absent, responsibility of the agricultural enterprises for efficient targeted use of assignments decreased. conclusion according to the data from minfin (2014), in 2006 highly salinized irrigated lands were accounted at 163,000 ha, whereas by 2009 the area with highly salinized lands has been reduced to 141,000 ha. in 2012, only 124,000 ha of irrigated land are under highly salinized land category. it can be seen that the reform has brought some improvements in land quality compared to prior to the reform implementation. according to the interviewed experts, the regions that benefit the most from the drainage reform are syrdarya, djizzakh, bukhara, khorezm and karakalpakistan. moreover, since cotton and wheat are strategic crops, the government of uzbekistan provides a subsidy to local farmers in the form of a tranche for growing these important crops, providing privileged credits at the start of each vegetation period to farmers who plant them. thus, experts believe that the state is a main beneficiary from this reform. this is due to the fact that once drainage canals are maintained and the water quality as well as the quantity is improved, crop production will also improve. since the state is a main buyer for cotton, it is obvious that the increase in yield results in win-win situation for the state. of course, farmers’ well-beings will also be improved with the increase in crop yields. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 78 www.americanjournal.org according to the statistics received from minfin (2014), in the areas where land quality has been improved due to the drainage-cleaning activities, the yield was improved by 200,000–250,000 kg from 1 ha of cotton field and by 250,000–300,000 kg from 1 ha of wheat field. in total for 2008-2014 on meliorative activities, it was allocated more than 1266,3 billion uzbek soums. about 4914,7 km open and 640,0 km closed collector-drainage network, 164 units of meliorative pump stations, 1065 units of vertical wells have been reconstructed and constructed for 550,5 billion uzbek soums. besides, repair and restoration of 86365,0 km open and 5510,0 km of closed collector-drainage network with constructions, 6352 units of vertical wells, 233 units of meliorative pump stations for a total soums 534,9 billion uzbek soums have been carried out. in 2008-2014 the irrigated land reclamation fund allocated 180,9 billion uzbek soums for improvement of material base of the water economic organisations, 1835 units of meliorative technics and mechanisms, including 721 units of high-efficiency dredges and 227 units bulldozers have been acquired. as a result of the executed activity, the meliorative condition of 740 thousand ha of the irrigated land have been improved and stabilised. the share of the land with strong and average salinity in designed zones has decreased against 2007 by 129,6 thousand hectares and the share of "not salted irrigated land increased” by 19,6 thousand hectare. positive dynamics of decreasing in a mineralization of subsoil waters is observed. 860,7 thousand hectares of the land deduction of level of subsoil waters on optimum for agriculture production marks is provided and the area of the land with a mineralization of subsoil waters to 2-3 g/l has increased by 530 thousand hectares. from the beginning of realisation of the program the share of the irrigated areas with critical level of subsoil waters to 2 m is lowered by 397,4 thousand hectares. for example, in the republic of karakalpakstan (199,4 thousand hectares of the land), in khorezm and (17,4 thousand hectares), bukhara (44,2 thousand hectares) areas decreased in comparison to 2007. the analysis shows that by 2014, on average cotton productivity increased by 1,2 % or 2 tons/hectares in the entire country. the same positive changes are observed in grain. so, in 2014 productivity against 2008 on wheat has increased by 3,4 tons/hectares and amounted at 55,0 centners. the analysis of productivity of 8411 farms in which territory meliorative activity at the expense of fund financing have been carried out illustrates that 56,2 % from them have achieved productivity growth of the cotton on average 2,0-3,0 tons/hectares. as, 5181 farms which are growing grain crops, have achieved productivity growth on average 5-17 tons/hectares. growth of productivity of grain in the farms of andizhan, dzhizak, kashkadariya and fergana regions, where meliorative activity has been carried out, amounted at 4,5 15,3 tons/hectares. references 1. bucknall, julia; klytchnikova, irina; lundell, mark; scatasta, monica and thurman, mike (2003). irrigation in central asia: social, economic and environmental considerations. europe and central asia region, environmentally and socially sustainable development. washington, d.c.: the world bank, 40. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 79 www.americanjournal.org 2. djanibekov, nodir; rudenko, inna; lamers, john; bobojonov, ihtiyor (2010). pros and cons of cotton production in uzbekistan. case study #7-9. in: food policy for developing countries: case studies (p. pinstrup-andersen & f. cheng, eds). cornell university, ithaca, new york, pp. 13. 3. dukhovny, viktor; umarov, pulat; yakuvob, haldar; madramootoo, chandra (2007). drainage in the aral sea basin. irrigation and drainage 56: 91–100. 4. groll, m, opp, ch, aslanov, i (2013). spatial and temporal distribution of the dust deposition in central asia – results from a long term monitoring program. aeolian research 9, 49–62. 5. hagedorn, konrad (2002). institutional arrangements for environmental cooperatives: a conceptional framework, paper published in: environmental cooperation and institutional change: theories and policies for european agriculture. new horizons in environmental economics. cheltenham, uk, and northampton, ma, usa: edward elgar. 6. hagedorn, konrad (2008). particular requirements for institutional analysis in nature-related sectors. european review of agricultural economics 35 (3), 357–384. 7. khamraev, shavkat; dukhovny, viktor; kadyrov, abror and sokolov, vadim (2011). water resources management in uzbekistan. scientific information centre of the interstate commission for water coordination (sic icwc) of central asia. tashkent, uzbekistan. 8. thiel, andreas; christian schleyer, maja schlüter, jochen hinkel, konrad hagedorn, sandy bisaro, ahmad hamidov und ihtiyor boboyonov (2013): "transactions in social-ecological systems: possibilities to complement the ses through a transaction costs based perspective?" 14th global conference of the international association for the study of the commons (iasc). mount fuji (japan), 03.-07.06.2013 9. trevisani, tommaso (2010). land and power in khorezm. farmers, communities, and the state in uzbekistan’s decollectivisation. berlin: lit; global, distributor (halle studies in the anthropology of eurasia, 23). 10. undp (2007). water critical resource for uzbekistan’s future. country office for uzbekistan. united nations development program. tashkent, uzbekistan. 11. united nations (2008). uzbekistan country analysis. united nations country team.tashkent. http://europeandcis.undp.org/uploads/public1/files/uzb%20country%20analysis_final.pdf. 13. veldwisch, gert jan and spoor, max (2008). contesting rural resources: emerging ‘forms’ of agrarian production in uzbekistan. journal of peasant studies 35 (3), 424–451. 14. world bank (2013). data: agriculture, value added (% of gdp). available at: http://data.worldbank.org/indicator/nv.agr.totl.zs/countries. http://europeandcis.undp.org/uploads/public1/files/uzb%20country%20analysis_final.pdf http://data.worldbank.org/indicator/nv.agr.totl.zs/countries american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 80 www.americanjournal.org analysis of the current state of development of business activities in the field of tourism and regional development models umronov eldorbek sodirovich researcher, fergana polytechnic institute, fergana, uzbekistan 150100, fergana city, fergana street 86. a b s t r a c t k e y w o r d s the article examines the effectiveness of business development in tourist enterprises. in the course of the research, the analysis of the current state of the tourism industry and its regional development models were formed and based by the author based on theoretical and practical research. tourism, tourist resources, tourism industry, tourist activities, tourism services, economic indicators, dynamics of the main indicators of the tourism sector, small business and private entrepreneurship. introduction the trends of socio-economic changes taking place on a global scale are reflected in the main macroeconomic indicators of the countries of the world, including the republic of uzbekistan, and the share of industries in relation to the gross domestic product. in the last 10 years, the trends related to the expansion of the servicing of economic processes indicate that the priority of production sectors in the structure of our country's economy may lead to the replacement of the activity of the service sector [1-4]. due to the influence of world economic integration, the development of import and export of services depending on the level of our country's economy requires the satisfaction of the need for new technological bases for the creation and improvement of several business activities. at the same time, market services occupy a large share (more than 60 per cent) in the structure of gross services. according to national and international statistics, more than 40 per cent of foreign investments in uzbekistan are involved in the development of the service sector, and this, in turn, shows the relevance of the development of this sector of the economy and determines its development prospects will be the basis [5-8]. the main part in recent years, more than half of the gross domestic product created in our country corresponds to the share of this sector. it includes industries and enterprises that provide the necessary conditions (material and immaterial) that ensure the improvement of the life of the country's population, and the continuation and profitability of production facilities. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 81 www.americanjournal.org in developed countries, the share of the service sector in the gross domestic product is 60-70 per cent. the level of development of this sector usually reflects the level of development of the country and its economic potential. the increase in labour productivity in the real sector of the economy allows the transfer of a large number of labour and material resources to other non-productive sectors of the national economy. tourism services occupy a key place in the main structure of the service sector in many countries of the world. in our country, the tourism sector has a place and a significant share in the increase of the statistics of the service sector in the following years, it can be said that this share is increasing more and more. the year-by-year increase in the real income of the population is reflected in the increase in demand for these services [8-11]. the increase in the volume of production in the real sector of the economy, the creation of new generation, complex, high-tech products ensures the growth of tourism services, and the increase in the type and quality of services in the field, in particular, the technical improvement of the field. in turn, the expansion of the scale of the tourism sector, the universality of services, the improvement of the quality of work, and the increase in the demand for goods. accordingly, the development of production scale and entrepreneurial activity leads to a significant increase in general macroeconomic indicators. based on the above points, it can be noted that the development of the tourism sector, in turn, is a factor in the development of the country's economy [12-15]. for countries with high economic potential, economic growth creates the basis for the expansion of the tourism sector, which means that the right connection is more significant. conversely, countries with less economic potential cannot afford to spend more on tourism. in this case, tourism services are not always popular and high-quality, and precisely because of this, the expansion of the tourism sector and the improvement of its quality characteristics increase the demand for products, stimulate the development of the real sector of the economy, that is, reverse relations occur. currently, the tourism industry is of crucial importance in the economy of developed countries. the level of real growth of the country's gross domestic product, changes in the share of industries and sectors, and the number of key indicators per capita reflect the level of development of socioeconomic systems. based on this, the study analyzed the changes in the volume of services in the field of services, in particular, tourism, which is its special direction, based on the time series of some key macroeconomic indicators in our country (table 1). table 1. changes in some economic indicators representing the development of the tourism sector indicators years 2014 2015 2016 2017 2018 2019 2020 2021 gross domestic product, billion soum 1 8 6 8 2 9 .5 2 2 1 3 5 0 .9 2 5 5 4 2 1 .9 3 1 7 4 7 6 .4 4 2 4 7 2 8 .7 5 2 9 3 9 1 .4 6 0 2 1 9 3 .0 7 3 4 5 8 7 .7 the volume of services, billion soum 6 8 0 3 2 .1 7 8 5 3 0 .4 9 7 0 5 0 .0 1 1 8 8 1 1 .0 1 5 0 8 8 9 .8 1 9 3 6 9 7 .8 2 1 9 9 7 8 .5 2 8 4 1 6 5 .4 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 82 www.americanjournal.org share of services in gdp, % 3 6 .4 3 5 .5 3 7 .9 3 7 .4 3 7 .1 3 5 .5 3 6 .5 3 8 .7 the volume of additional investments in fixed capital, billion soum 3 7 6 4 6 .2 4 4 8 1 0 .4 5 1 2 3 2 .0 7 2 1 5 5 .2 1 2 4 2 3 1 .3 1 9 5 9 2 7 .3 2 1 0 1 9 5 .1 2 3 9 5 5 2 .6 the volume of services per capita, thousand soums 2 2 1 1 .9 2 5 0 9 .0 3 0 4 7 .3 3 6 6 8 .3 4 5 7 8 .5 5 7 6 8 .2 6 4 2 6 .1 8 1 3 8 .8 the volume of services created by small business and private business entities, billion. soum 4 0 1 8 7 .9 4 7 2 6 9 .6 6 1 3 4 6 .2 6 9 2 1 2 .7 8 4 4 3 3 .4 1 0 3 1 0 6 .6 1 1 4 0 5 2 .7 1 4 4 8 1 2 .7 during 2014-2021, the share of the service sector in the country's gross domestic product changed based on a certain fluctuation, that is, in 2014, this indicator was 36.4 per cent, and it steadily grew until 2018. , reached 37.1 per cent. the impact of the coronavirus pandemic, which occurred worldwide since 2019, did not fail to shake the dynamics of macroeconomic indicators, that is, during this period, the index of the volume of services in the gdp was 35.5percent and by the end of 2020 it changed to 36.7 per cent. since 2021, it has reached a growth trend of 38.7 per cent due to the decrease in the spread of the pandemic. the volume of additional investments in fixed capital, calculated from the main macroeconomic indicators, had a stable growth trend during the last nine years under analysis. the per capita volume of services created by the service sector and the volume of services created by small businesses and private entrepreneurs have been growing rapidly over the years. the analysis of the indicators of the development of the tourism sector observed in the national statistics system for the period 2014-2021 shows that the sector has developed rapidly during the past eight years (before the pandemic) (table 2). table 2. dynamics of the main indicators of tourism in uzbekistan no indicators years 2014 2015 2016 2017 2018 2019 2020 2021 1 tourism consumption within the country, bln. soum 1 3 5 7 6 .2 1 4 0 1 0 .7 1 3 7 7 2 .5 1 6 5 6 8 .3 2 0 5 6 1 .3 2 7 6 9 6 .0 5 2 7 1 .2 1 9 8 5 2 .5 2 the volume of services offered by the tourism sector, bln. soum 6 6 5 1 .7 7 2 0 3 .8 7 8 0 9 .0 8 2 6 1 .9 8 6 5 8 .4 9 3 3 3 .8 8 5 4 0 .4 9 8 4 8 .6 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 83 www.americanjournal.org 3 the number of people employed in tourism, thousand people 1 8 5 .0 1 8 8 .4 1 7 0 .9 1 8 7 .6 2 0 1 .0 2 3 0 .5 1 8 9 .2 2 8 2 .5 4 results of activity of service industries related to the tourism industry accommodation and catering services, billion. soum 1 1 1 8 .7 1 3 0 2 .5 1 5 0 2 .5 1 6 9 3 .8 1 8 2 3 .9 1 9 6 7 .1 1 6 9 0 .2 2 1 8 5 .2 culture and art, billion. soum 3 5 4 .6 3 7 3 .5 4 1 4 .7 4 3 9 .3 5 4 7 .8 6 5 5 .8 6 2 4 .5 6 7 0 .2 transportation and storage, bln. soum 1 4 0 5 2 .3 1 4 9 0 5 .7 1 5 7 2 5 .5 1 7 5 0 9 .0 1 8 7 1 3 .4 1 9 9 5 0 .6 1 9 5 2 0 .2 2 2 5 4 0 .8 trade services, bln. soum 1 2 7 1 7 .6 1 4 0 9 5 .8 1 5 3 2 5 .2 1 5 4 8 3 .6 1 6 2 7 5 .4 1 7 4 2 9 .9 1 7 7 2 4 .1 1 8 5 2 8 .2 in 2014-2021, the level of tourism consumption within the country increased at a steady pace due to the increase in the population and the improvement of living standards. if in 2014 the volume of tourism consumption within the country is 13576.2 bln. amounted to 19,852.5 billion soums by 2021. however, in 2020, due to the decrease in the demand for tourism services of the population due to the existing conditions, this indicator decreased by 2.5 times from the indicator in 2014. nevertheless, the volume of services offered by the tourism sector has steadily increased over the past seven years. this is more clearly reflected in the change in the number of labour resources employed in the tourism sector. in particular, during 2014-2019, the number of labour resources employed in the industry increased from 185,000 to 230,500 people. at the same time, the development of the tourism sector has a multiplier effect on the development of industries and industries that cross the lines of activity. in particular, the development of the tourism sector has a direct impact on the development of accommodation and food services, culture and art, transportation and storage services, and retail trade, which are the main links of the service sector. table 2 shows the changes in the results of activities in the above-mentioned service areas during the analyzed period. if we pay attention to the analysis of these indicators, it shows that the level of development of the related service industries has recorded trends of change in parallel with the main tourism industry. this confirms the above points once again. the following table shows the number of tourist enterprises that carried out tourist activities in different regions of our country during 2011-2020 and the in-kind indicators of the services provided by them (table 3). however, by 2020, the number of tourist enterprises operating under the influence of the pandemic factor has decreased to 337, and they have provided services to a total of 212,300 customers. as can be seen from the analysis of the data in the table, tourism was the most affected sector of the national american journal of business management, economics and banking volume 11 april, 2023 p a g e | 84 www.americanjournal.org economy due to the impact of the covid-19 pandemic that started at the end of 2019 and the largest decrease in the volume of work. during the analysed period, the number of tourist companies and organizations operating in our country has increased in proportion to the volume of tourist flow. if in 2011, a total of 332 tourist firms and organizations operated in the territory of our country, and they provided tourist services to a total of 411.7 thousand customers (370.1 thousand people) and sent them (41.6 thousand people) services provided. by 2019, the number of operating tourist firms and organizations increased by 1.56 times and reached 517. during the year, these tourist enterprises provided tourist services to a total of 942,000 customers (788,800 people) and departures (128,500 people). table 3. tourist enterprises that have carried out tourist activities in the republic of uzbekistan and 1activity indicatorstheir indicators years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 number of tourist companies and organizations, unit 332 358 336 343 398 433 449 502 517 337 number of clients served by tourist firms and organizations, thousands of people 411.7 511.6 505.4 514.1 560.4 465.4 670.0 713.2 942.0 212.3 including: the number of received customers, thousand people 370.1 431.7 416.6 419.0 421.3 351.0 558.0 613.4 788.8 186.2 number of sent customers, thousand people 41.6 53.7 63.4 61.2 98.4 80.1 72.5 84.9 128.5 18.6 based on the above analysis, it can be said that from 2011-2020, the trend of steady growth in the volume of tourism services has been achieved in all regions of our country. this, of course, in the expansion of the market of tourism services in our country, accelerates the achievement of goals in the development of business activities in the following directions: − the rapid development of the service sector; − increasing the role and share of services in the formation of the gross domestic product; 1the information in the table was developed based on the information of the state statistics committee of the republic of uzbekistan. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 85 www.americanjournal.org − to fundamentally change the composition of the services provided due to modern high-tech types of the service sector; − the rapid development of the tourism industry, increasing its role and share in the economy; − diversifying and improving the quality of tourist services; − expansion of tourism infrastructure; − liberalization and simplification of export activities; − diversification of export composition and geography; − expanding the export potential of economic sectors and regions; − to reduce the number of subsidized districts and cities and to expand the income base of local budgets due to the rapid development of industry and service provision, to implement comprehensive and proportionate development of regions. in the course of the research, the volume of services provided by the service networks operating in the service sector, which is considered the basis for the development of entrepreneurship, was statistically analyzed. according to the results of the analysis, the volume of creation of services in our republic in 2014 was 68.0 trillion, amounting to 284.2 trillion soums in 2021. it was found that it reached soum. over the past 8 years, the volume of services created in the sector has reached a growth rate of 4.2 times (table 4). during the period analysed in the study, the high development of services produced by types of economic activity was accommodation and catering (12.0 times), architecture and engineering (9.0 times), financial services (8.9 times), health shows that there was rapid growth in the health care (5.7 times) and education (5.5 times) services. it should also be recognized that during the years of the analysis, the volume of services produced by types of economic activity developed at a steady pace and had a significant positive impact on the share of the country's gross domestic product. based on the data, we can observe a rapid increase in the volume of services produced over the last eight years. this, of course, shows the growing demand of consumers for intangible products created in the service sector and the development of business activities in the sector. (in the account of 2table 4. the volume of services provided by the main types of economic activity trillion soums) indicators years in 2021 compared to 2014, times 2014 2015 2016 2017 2018 2019 2020 2021 services total 68.0 78.5 97.1 118.8 150.9 193.7 219.9 284.2 4.2 including by main types: information and communication services 4.5 5.2 6.3 8.2 10.3 10.9 13.9 17.7 3.9 financial services 6.7 8.2 9.9 15.0 21.3 34.0 45.8 59.7 8.9 transport services 23.8 26.8 30.6 36.2 44.2 54.5 53.6 67.2 2.8 accommodation and food services 0.7 0.9 3.0 3.7 4.7 5.9 5.4 8.4 12.0 trade services 19.0 21.4 27.4 32.0 39.7 48.7 57.6 72.5 3.8 2it was developed by the author based on the information of the state statistics committee of the republic of uzbekistan. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 86 www.americanjournal.org real estate services 2.2 2.8 3.4 4.0 4.9 6.0 6.1 8.0 3.6 educational services 2.2 2.7 3.3 4.4 5.4 7.2 8.5 12.0 5.5 health care services 0.9 1.1 1.4 1.7 2.2 3.1 3.4 5.1 5.7 rental and leasing services 1.5 1.8 2.3 2.6 3.3 3.7 4.1 5.3 3.5 repair services for computers, personal items and household goods 1.4 1.7 2.2 2.3 2.6 3.2 3.3 4.7 3.4 personal services 2.0 2.4 2.9 3.1 3.7 4.6 5.0 6.7 3.4 services in the field of architecture, engineering research, technical testing and analysis 0.7 0.8 1.1 1.6 3.0 4.5 4.9 6.3 9.0 other services 2.3 2.8 3.2 3.9 5.5 7.3 8.3 10.3 4.8 as a result of the ongoing structural changes, the development of small business and private entrepreneurship in the economy of our country during 2014-2021 has changed in the form of a positive trend. based on accurate calculations, the change in small business and private entrepreneurship by economic sectors increased by 2-5.6 times on average (table 5). the analysis of the cross-section of individual sectors for 2014-2021 shows that small business and private entrepreneurship have increased in construction (5.6 times), trade (4.1 times), industry (3.9 times), agriculture (3.7 times) and the service sector (3.6 times) shows that it has increased rapidly, it is seen that this indicator has not increased to a high degree in the employment and export sector. table 5.the size of the main indicators of small business and private entrepreneurship in economic sectors indicators years in 2021 compared to 2014, times 2014 2015 2016 2017 2018 2019 2020 2021 industry (billion soums) 30907.0 39643.5 50654.5 61367.8 87962.0 83344.2 103020.8 121719.2 3.9 construction (billion soums) 13944.9 16954.0 19671.0 22469.4 37451.7 53960.9 63866.6 77762.0 5.6 employment (thousand people) 9950.8 10170.4 10397.5 10541.5 10128.8 10318.9 9865.7 10070.7 1.0 export (million usd) 3657.8 3377.7 3139.2 2759.3 3810.8 4714.8 3100.9 3711.2 1.0 import (million usd) 6352.6 5523.1 5676.8 7511.9 10916.2 14972.2 10943.3 12389.0 2.0 trade (billion soums) 50197.8 61972.3 78935.6 92973.0 114896.4 138920.7 164106.1 204787.4 4.1 agriculture, forestry and 82957.2 101197.5 118011.4 152010.5 191759.2 219466.9 253238.2 307280.2 3.7 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 87 www.americanjournal.org fisheries (billion soums) services (billion soums) 40187.9 47269.6 61346.2 69212.7 84433.4 103106.6 114052.7 144812.7 3.6 shipping (million tons) 416.1 472.8 538.6 548.8 611.7 641.0 638.9 678.9 1.6 freight turnover (mln. ton-km) 8632.9 9225.1 10072.4 10444.4 11657.7 12152.3 12304.6 13108.1 1.5 passenger traffic (million passengers) 4224.5 4486.3 4866.5 5037.5 5242.6 5345.0 4904.8 5237.6 1.2 passenger turnover (mln. passenger. km) 93024.7 99872.8 107789.7 111435.0 115335.2 117412.7 107766.7 114681.5 1.2 the dynamics of indicators over the years show that the indicators at the end of 2020 show a certain downward trend due to the pandemic that started in 2019, and in 2021, the downward trend turns into a stable increase. from the data in the above table, it can be seen that although the activity of small business and private entrepreneurship in the sectors and sectors of the economy in our country has a trend of stable growth in terms of volume, the expansion of service processes in sectors and sectors, at the same time, the production of products created in material production sectors the share of services in the real sector in the gross domestic product increases due to the increase in the level of service provision. the confirmation of our opinion can be seen in the changes in the share indicators of small business and entrepreneurship presented in table 2.6, that is, in the indicators of the last eight years, the share of small business and private entrepreneurship increased only in the volume of construction and import. references 1. мирзаев, а. т. (2018). рекреацион–туризм кластерларини яратиш ёҳуд улар орқали ҳудудларда сайёҳлик тизимини ривожлантириш истиқболлари. бизнес-daily медиа, (12), 21. 2. мирзаев, а. т. (2020). ўзбекистонда туристик-рекреация корхоналари фаолиятини бошқаришнинг ташкилий-иқтисодий механизмларини такомиллаштириш. бизнес-daily медиа, 1, 62-65. 3. умронов, э. с. (2022). туристик корхоналарда тадбиркорлик фаолияти ривожланишига омиллар таъсирини баµолаш. бизнес-daily медиа, 4(172), 69-73. 4. умронов, э. с. туристик корхоналарда тадбиркорлик фаолиятини ривожлантириш хусусиятлари. хоразм маъмун академияси ахборотномаси.-2022,-№ 3 (87).-171-176-б. 5. umronov, e. s. prospects of business development in tourist enterprises. international journal of innovative analyses and emerging technology| e-issn, 2792-4025. 6. sodirovich, u. e. (2022, june). use of investment mechanisms in the development of business activity in tourist enterprises. in international scientific and current research conferences (pp. 171-177). 7. умронов э.с. (2022). инновaтционные подходы в подготовке квалифицированных кадров в сфере туризма. oliy ta’lim muassasalarida raqobatbardosh kadrlar tayyorlashning zamonaviy integratsiyasini ta’minlash: muammolar va yechimlar мавзусидаги республика илмийтехникавий анжуман материаллар тўплами. қўқон. 51-54-б. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 88 www.americanjournal.org 8. sodirovich, u. e. (2022, may). economic foundations of the organization and development of entrepreneurial activity in tourist enterprises. in international scientific and current research conferences (pp. 127-131). 9. умронов э.с. (2022). совершенствование стратегии развития предпринимательства в сфере туризма. наука сегодня вызовы и решения материалы международной научнопрактической конференции. вологда, с. 48–51. 10. умронов э.с. (2022). к вопросам совершенствования стратегии развития предпринимательства в сфере туризма. актуальные вопросы экономики в современных условиях материалы международная научная конференция. россия, с. 828-831. 11. умронов э.с. (2022). туристик корхоналарда тадбиркорлик фаолиятини давлат-хусусий шерикчилик механизми асосида ривожлантириш йўллари. “yangi o‘zbekiston iqtisodiyotini rivojlantirishning dolzarb masalalari” мавзусида ресоублика миқёсидаги илмий-амалий конференция. наманган. 196-200-б 12. умронов э.с. (2022). туризм соҳасида тадбиркорлик шакллари диверсификatsiясига таъсир этувчи омиллар. “реал сектор соҳаси иқтисодиётини ривожлантиришнинг илмий асослари ва муаммолари” мавзусидаги халқаро илмий-амалий анжуман материаллари тўплами. самарқанд. 100-105-б. 13. sodirovich, u. e. (2022, june). use of investment mechanisms in the development of business activity in tourist enterprises. in international scientific and current research conferences (pp. 171-177). 14. умронов э.с. (2022). туризм тармоғининг ихтисослашув жараёнлари ва уларда кичик бизнес ва тадбиркорликни ривожлантиришнинг айрим масалалари. globallashuv sharoitida tadbirkorlik va kichik biznesni rivojlantirishning dolzarb masalalari халқаро миқёсдаги илмийамалий амжуман мақола ва тезислар тўплами. наманган. 206-209-б. 15. умронов э.с. (2021). туризм корхоналарида тадбиркорлик фаолиятини ривожлантиришда рақобатбардошликни ошириш усуллари. ўзбекистонда “ақлли қишлоқ хўжалиги” ва “қишлоқ хўжалиги 4.0” концепцияларини амалга ошириш: муаммо ва ечимлар” мавзусидаги республика илмий-амалий анжумани материаллари тўплами. тошкент. тдиу. 721-724-б. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 71 www.americanjournal.org the effectiveness of internal audit in enhancing corporate governance in iraq hamza kadhim rishag al-kadhum college department financial and banking sciences hamza.alomri@yahoo.com mawj abbas jasim southern technical university/ thi-qar technical college mawj.alhchaimi@stu.edu.iq a b s t r a c t k e y w o r d s i aimed this is the study to me determine nature censorship internal and governance companies from destination consideration academy and its importance for owners interest.and study nature relationship between audit external and reinforcement exercise governance companies and specify bezel effectiveness audit procedure in strengthen governance companies in iraq. used the study curriculum descriptive analytical.and i concluded the study to me presence effect the indication statistic to effect audit procedure from before auditors internals on me investigation governance companies in comp manufacturing the public in iraq.from hand other , ranges average arithmetic to measure effect proces audit procedure on me governance in companies that included the study , which comp produce general in iraq , from2.25to me1.47, and volume the influence from0.699to me0.916, which.average to me big , than indicates to me direction imagine the sample toward investigation dimensions audit procedure which include:(planning , time and scope review , statement risks finance , scale down cost proces review)to effect internal.audit in management companies that included the study.and this is indicative on me effectiveness audit procedure in the influence on me administration in comp manufacturing the public iraqi , with what goes along with imagine a sample search. the effectiveness, internal audit, enhancing corporate, governance in iraq, corporate sector. introduction: governance companies she the system that complete from through it guidance companies and monitor it , and be boards administration responsible about governance its companies.is represented role contributors in governance in designation managers and reviewers and persuade themselves by the presence of structure governance appropriate .include responsibilities board administration determine objectives the strategy for the company , and saving leadership to put it position implementation , and supervision on me management business , and raise reports to me contributors american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 72 www.americanjournal.org about their supervision.submit procedures board administration for the laws and systems and for the shareholders in the meeting general to check procedure.audit procedure he is activity advisor independent and objective aim to to me addition values and improve operations enterprise.as such it's a helps enterprise on me investigation its goals from during to provide approach organizer and disciplined to evaluate and improve effectiveness operations management risks and censorship and governance.i became governance topic prominent in the time last , especially distance the crisis finance globalism for the year2008, which contributed in weakness systems governance companies and censorship , and it is increasing evidence on me role decisive that you play in determine welfare the society. the study problem recent financial scandals have shown that the risks of accounting fraud can be opaque in any type of economic system.and thein this context, information transparency is an indispensable component of market competitiveness.and theeffective operation of corporate governance systems, especially control systems.and theall of these must be appropriate in legislation in terms of external information. "1. this study seeksto meemploying internal auditing as one of the corporate governance mechanismsspreadfinancial and administrative corruption at the company level, and thenaccess to reliable and credible financial information, which serves as a basefor makersthe decision.and theperhapsyeh,the following problem can be raised: how effective is internal auditing? strengthening corporate governance in iraq? several emerge from the main questionsubsidiary questions, which is next: 1what is the nature ofinternal audit? 2what is the nature ofcorporate governance? 3what is the nature of the relationship between internal audit and corporate governance? 4whatthe effectiveness of internal audit in enhancing corporate governance in iraq? objectives of the study: the objectives of the study are the following: • showingbezelthe contribution of internal audit in changing the view of internal control from mere adherence to established standards to a means of enabling companies to improve their organizational performance. • highlight the importancereach a high level ofintegrity, responsibility and efficiency ingrantconfidencetofor referencesyenprocedureyen in order tomeet the requirements and aspirations of all related partiesrelevancewith the company. • study and analyze corporate governance from an academic point of view and its relevance to stakeholders; • studying the nature of the relationship between external auditing andstrengthencorporate governance practice. 1 ionel bostan and veronica grosua grosu (2010), “the role of internal audit in optimization of corporate governance at the groups of companies”, theoretical and applied economics volume xvii, no. 2 (543), p. 89-110 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 73 www.americanjournal.org • find out how effective it isinternal audit in enhancing corporate governance in iraq. the importance of studying: liethe scientific importance of the study in its contribution tothrowmore light on mehow effective exercise auditinternal in strengthening corporate governance, as well asrolecheckerinternal whofor anyit is still a research point that needs more scientific research, particularly athe arab environment is lackingto theto culturetowardsrole importancecheckeracademically and professionally qualified intern. study hypotheses: the hypotheses of the study are as follows: the first hypothesis: there is no statistically significant effect at the level of significance (0.05) regarding the perceptions of workers in public production companies in iraq about the availability of aspects of enhancing internal auditing. the second hypothesis: there are no statistically significant differences in the perceptions of workers in public production companies of the impact of internal auditing on corporate governance due to demographic variables (age, job degree, academic qualification, number of years of job experience, academic specialization). the following sub-hypotheses are derived from this hypothesis: there are no statistically significant differences between age and perception of the impact of internal auditing on corporate governance. there are no statistically significant differences betweenspecialization academicand thevisualize the impact of internal auditing on corporate governance. there are no statistically significant differences betweendegree functionaland thevisualize the impact of internal auditing on corporate governance. there are no statistically significant differences between the educational qualification and the perception of the impact of internal auditing on corporate governance. there are no statistically significant differences betweennumber years experience functional andvisualize the impact of internal auditing on corporate governance. the third hypothesis: there is no statistically significant effect at the level of significance (0.05) of the internal audit carried out by the internal auditors on achieving corporate governance in the public production companies in iraq. the limits of the study: in order to achieve the aim of the study and its hypotheses, the limitations of the study are limited to the following points: • spatial boundaries: a group of private companies iraqi. • human limitsinternal auditors in a number of private companies iraqi. • time limits:this study was conducted during the period between 2021 to 2022 ad. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 74 www.americanjournal.org study approach: in light of the research problem, wattnosof the importance of the studyand achieveto its goals,badit was completedduringtheathe following penaltyracism what is internal audit and corporate governance, and whetherinternal auditthe application in iraqi companies is effective instrengthenthegovernanceinside thesecompanies in iraqthis is done by relying on the descriptive analytical method. study structure: for more information on the topic, the study was divided into three partssection dealsthe first: the theoretical framework aboutinternal auditand thecorporate governance. while the second section focuses on meresearch and analyticsthe relationship between internal auditing and corporate governance, then the third section will be discussedthe effectiveness of internal audit in enhancing corporate governance in iraqfinally, the results and recommendations. the first section: the theoretical framework aboutinternal auditand thecorporate governance. first: internal audit a variety of meanings are attributed to the term "internal audit". the concept of internal audit is a common concept in the auditing and accounting literature, and as such many authors and professional bodies have provided definitions of this concept.and thein the simplest term,knowninternal auditthat:auditthatit is conducted in connection with the affairs of the corporation by its employees or by an external service provider. this definition recognizes that internal audit is conducted by the organization's employees and focuses on the organization's operations; it also indicates that the internal audit function can be outsourced to a resource that performs the same functions as the internal internal auditors and reports to management"2. the american institute of internal auditors defines internal auditing as::an independent and objective activity that provides guarantees and advisory servicesin order toadd value to the organization and improve its operations, as suchthis activity helps achieve the objectives of the organization by taking a structured approach to assessing and improving the effectiveness of governance, risk management and control processes"3. whileknown french institute of audit and internal control(ifaci) afor internal auditthat:a function responsible for the periodic audit of the means and capabilities available to management and managers at all levels, to manage and control the company, and theprovide this functionality beforepartysubordinate to the administration and independent of the rest of the interests among its main objectives within the frameworkauditleaguehe isverify that the procedures include the 2 eke gifto(2018),internal audit and corporate governance effectiveness in universities in rivers state”,european journal of accounting, auditing and finance research,vol.6, no.4, p38. 3 muhammad mohsen awad imitated(2018)the role of the internal auditor to activate the principles of corporate governance and the positive effects reflected on the performance of companies: a theoretical studyjournal of financial and commercial research, faculty of commerce, port said university, volume (20), issue (1), p. 33. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 75 www.americanjournal.org guaranteetand sufficient informationwallcorrect, operationsthelawful, regulations effective, structures clear and appropriate"4. from the perspective of(aguolu, 2002), the internal audit is"independent evaluation of the functions and quality of performance of the organization by specially appointed staff as part of the system of internal control". he pointed out that many organizations, especially large ones, use the services of internal auditors in order to enhance the efficiency of their operations. and that the internal auditor is an employee of the organization and therefore works full time within the organization. this definition is similar to the one originally provided by the institute of internal auditors because of its emphasis on the independence of the internal auditor5. and theall definitions tend to emphasize the fact that internal audit involves reviewing the accounting and financial operations of an organization and is performed by the organization's employees. however, modern internal audit now extends beyond reviewing transactions to assessing operational and strategic risks and is undertaken as an assurance and advisory activity that improves an entity's operations. on the basis of the strategic role of internal audit,and thethe institute of internal auditors (iia) through the professional practices framework (ppf) issued in 2002 amending its original definition of internal auditing.and thethe new definition of internal auditing is designed to accommodate the profession's expanding role and responsibilities. thus, the institute of internal auditors (2002) defined internal auditing as an independent and objective consulting activity aimed at adding value and improving the operations of an organization. helps the organization achieve its goals by providing a structured and disciplined approach to assessing and improving the effectiveness of risk management, control and governance processes6. the importance of internal audit the importance of internal auditing lies in the following7: • continuous improvement of processes based on objective measurement: means a series of continuous efforts made by the internal audit functionto get up bthe quality of the services you providehandon the other hand, the objective assessment of the activities and functions of the company. • need to lookinoperation from a value-added perspective:vialooking at the operations carried out by the internal audit function and the added value expected to be achieved for the companyand for allbeneficiary parties services. • understanding and meeting requirements: by understanding internal audit requirements and fulfilling the services you needallthe parties,includinginternal audit client expectations. 4 dragos laurentiu zaharia, andreea lazar, doina maria tilea (2014), “the role of internal audit regarding the corporate governance and the current crisis”, 5th world conference on educational sciences wces 2013, procedia social and behavioral sciences, 116. 5 aguolu, o. (2002). fundamentals of auditing, enugu: meridian associates. 6 institute of internal auditors (2002). “recommendations for improving corporate governance: presented to the new york stock exchange”, altamonte springs, florida: the institute of internal auditors. 7 oussif lakhdar (2017),previous reference,s159. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 76 www.americanjournal.org fundamentals of internal auditing various literatures show that corporate governance can achieve its objectives by relying on the fundamentals of internal control.which are as follows8: 1) disclosure and transparency: transparency means providing data in order to protect the future of shareholders and to make the community aware that the organization is capable of fulfilling its obligations. thus, transparency is an important element to ensure fairness, fairness and trust when applying the procedures taken by the organization's management and employees. 2) accountability:and theit means the responsibility of the organization to perform continuous review and evaluation of management by related partiesrelevancesuch as stakeholders and employees as well as the community.and thethis can be implemented by providing the organization internally with representatives of the control structure, including independent audit committeese,in addition to the internal control to carry out its duties independently. 3responsibility:and theit means that the company must have an ethical message that must be implemented in the society and that the managers realize that they have a duty to the work staff, to improve the services provided to them, and to protect the environment as well. 4justice: it means respecting the rights of stakeholders in the company, and distributing tasks, duties and responsibilities among employees on the basis of justice and equality. hence, the organization for economic co-operation and development (oecd)oecd) on the need to develop systems aimed at preventing employees of the organization including managers from taking advantage of their jobs. 5independence: independence aims to limit or eliminate conflicts of interest through the establishment of independent committees, the appointment of auditors, and the prevention of any control by any party or side to control or influence the decisions of the board of directors.. second: corporate governance conceptcorporate governance: the organization for cooperation and development defines timesadia(oecd)corporate governanceonit isit includes a set of laws, rules and standards that define the relationship between the company’s management, its board of directors, shareholders and related parties.,corporate governance also provides the structure through which the company's objectives are defined, and the means for achieving these objectives and monitoring performance.9. and thecorporate governance is defined as::the mechanism through which all individuals working in the company, regardless of their position in it, are motivated to make their actual behavior and practices compatible with the target company's strategy and vision in maximizing its added value, and then achieving ittothe principle of justice and balance between the interests of the executive management 8 suhaib tawfiq jarrar (2016), “the effect of corporate governance in palestine on the efficiency of internal audit: empirical evidence”, international journal of economics and finance; vol. 8, no. 5. p 126-127. 9essam mohamedal-taweel, (2018), the effect of integration between the application of governance rules and audit quality in controlling the practice of earnings management.journal of financial, accounting and administrative studies, number (1), p. 75. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 77 www.americanjournal.org ofhandand the interests of the executive management ofanother sideand the interests of other parties, including owners ofhandother"10. and thewe can define corporate governance as::"a set of rules, foundations and methods that work to control the management of the company and tighten control over it.11. and theto get to knowcorporate governanceas it is:the system in which companies are managed and monitored, and the boards of directors are responsible for the governance of their companies, and the role of shareholders in governance is to elect members of the board of directors and auditors, and to ensure the existence of a governance structure that suits them, and that the responsibility of the board of directors includes defining the strategic objectives of the company, and providing leaders who achieve these goals, monitoring work management, presenting reports to shareholders during their tenure, ensuring that the board of directors adheres to laws and regulations, and works for the benefit of shareholders who are members of the general assembly."12. from the previous definitions,can be definedcorporate governanceprocedurallythat it is:"the mechanism that organizes work between shareholders, the board of directors, managers, and stakeholders." the importance of corporate governance, and its goal organization for economic co-operation and development (oecd)oecd) highlight the importancegovernancerational corporate governance in the global and local economic environment.and theaccording to the oecd, if countries are to reap the full benefits of the global capital market, and if they are to attract long-term capital, corporate governance arrangements must be credible and well understood across borders.and theeven if companies do not rely primarily on foreign sources of capital, adhering to good corporate governance practices will help improve the confidence of local investors, may reduce the cost of capital, and ultimately lead to more stable sources of financing. 10 muhammad matar and abdel nasser nour, (2007), “the extent to which jordanian public shareholding companies adhere to the principles of corporate governance,” the jordanian journal of business administration, volume (3), issue (1), amman, jordan, p. 51. 11 aziz logani, and moufida issayahyaawi (2021), "the role of internal audit in activating corporate governance: a case study of a group of economic institutions",journal of financial, accounting and administrative studies,university of larbi ben m'hidi oum el bouaghi laboratory of finance, accounting, taxation and insurancevolume (8), issue (1),p. 660. 12al-ayeb abdel-rahman (2016), "the role of internal auditing in the proper practice of corporate governance in the light of international standards for the practice of the internal auditing profession.journal of economic sciences and management sciences,faculty of economic and commercial sciences and sciencessyersetif university1, algeria, issue (16), p49. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 78 www.americanjournal.org corporate governance also aims to:mainto meprotect the long-term interests of shareholders, and theimprove competitiveness and access to capital in the global market, and thethe market views corporate governance as an incentive for shareholders to invest in the company13. section two: the relationship between internal audit and corporate governance improving management processes in all lines of companies or organizations requires knowledge and application of more modern principles aimed at ensuring that managemententerprisework well forto improve theperformance fenhance thecapacitythecompetitive. hence, there is a need for good management practices and their implementation in the corporate governance structure.and considerthe audit committee is the right hand of the members of the board of directorsand it's a wayto supervise performancethemanagement, as well asresponsible for the overall implementation of internal audit. as suchinternal audit is responsible for analyzing and evaluating management in terms of systems and processes to provide reasonable assurance regarding the level of internal control activities and provide advice to management that will lead to the improvement and development of business activities of the entities in all line subjects for review. thus, it is known that the roles and functions of internal auditing are changing and developing in an increasing and widespread manner from an activity that identifying fraud is a real management tool, that is, the presence of advisory activities that contribute to improving the governance system. and thethe perception of the role of internal audit is to increase the centralization of risk management and internal control in corporate governance.14. or not: the role that the internal auditor performs through the principles of corporate governance governance principles aim to achieve justiceand thetransparency and protection of the rights of all stakeholders,and thethis goal corresponds to a goalauditinternal resulting from the commitment of the company's departments to normalize internal communications and adherence to regulationsand theprofessional standards,therefore it will be displayedthe role of the internal auditor through the principles of governance15: 1. principlemake surethe existence of a foundation for an effective corporate governance framework: the internal auditor plays his roleacrosscontribute to the development of the corporate governance structure and verify the integrity of the existing systems and their compliance with the rulesand thelegal and legislative requirements,as well as verifying the distribution of responsibilities to the supervisory authoritiesand censorshipfor the company. 2. the principle of shareholder rights:the internal auditor plays his roledustconducting financial and management reviews, documentary reviews, compliance reviews, and checking whether or not there is similarity in information and that property rights are registered to their rightful owners. it also 13 sherien mamoun sayed ahmed mohamed (2020), “the role of internal control system in activating corporate governance: field study in the national audit chamber”, journal of public administration and governance, vol. 10, no. 2, p 404. 14 irwanadimas ganda saputra, achmad yusuf (2019), “the role of internal audit in corporate governance and contribution to determine audit fees for external audits”, journal of finance and accounting, vol. 7, no. 1, p2. 15 muhammad mohsen awad imitated(2018),previous reference,p. 38. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 79 www.americanjournal.org checks the articles of association of the companyand thethe adequacy and appropriateness of disclosure of information to stakeholders. 3. the principle of equal treatment of shareholdersthe internal auditor plays an important role by controlling internal information from:during applicationcensorshipwhichit is not exploited and traded leading to transfer of wealth, and therefore the internal auditor must checkfromshareand thel shareholders on their voting rights and information justifying their voting rights. 4. the principle of the role of stakeholders in corporate governance:jthe law guarantees a rightand sowners of companies,since the governance practices framework includes recognition of these rights, the internal auditor verifies the company's compliance with these rights for shareholders, if those rights are violated that presents risks, the internal auditor examines procedures to mitigate or reduce these risks, as well as checks compensation policies. 5. the principle of disclosure and transparency: this principle is considered the most importanthighlightedgovernance principles,because hecomplies with the principle of full disclosure, which is one of the accounting principlesacceptedand because this principle is a violation that leads to risksresulting from the asymmetrythe information,and thenthe internal auditor verifies that the principle of full disclosure has been taken into account by the financial department, and therefore this role supports the principle of disclosure and transparency. 6. ms principleandboard mandates: it is consideredthe internal auditor is the link between all departments, the board of directors and the committees emanating from the audit and risk management committee.and thenassists the board of directors in providing information related to the assessment of risk policies and proceduresduringprovide assurance about risk management processesthatcorrectly evaluated,besidessubmitting reports on the assessment of major risks to the board of directors. secondly: the role of internal audit in corporate governance this section specifically highlights the role of internal audit in determining how the internal audit function fits into the corporate governance framework and its contribution to corporate governance.and theaccording to the institute of internal auditors, internal audit plays two essential roles in corporate governance with regard to: monitoring risk16and provide safeguards with respect to controls.and thein the context of governance, the main activity in relation to risk is its control, including all sub-steps of risk identification, assessment of the potential impact of the risk on the organization, defining the risk treatment strategy, and then monitoring the environment for new risks as well as monitoring the existing risk strategy and accompanying controls.and therisk is closely related to strategy. and the actions that must be taken to reduce or eliminate the identified risks.and 16 risk is the potential for an event or action, or inaction, to adversely affect the organization or activity under review. thus, risk is the chance or probability of something bad happening and includes the opportunity cost associated with not taking action. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 80 www.americanjournal.org thethe institute of internal auditors (2002) summarized the role of the internal audit function in relation to risk as follows17: • evaluate the current risks of the controlled area and report this assessment to management or the audit committee, or both. • develop a plan to systematically assess risks across the organisation. • lead risk management activities when a vacuum occurs within the organization. • facilitate risk assessment through risk self-assessment techniques. • evaluate the risks associated with new computing developments and stop the project if the risks are not controlled at predetermined acceptable levels. • assist management in implementing the risk model across the organisation. in addition to risk control, the internal audit function provides assurance on internal controls.and thecontrols are in place to address risks. control is any action taken by management to enhance the likelihood of achieving set goals and objectives. the institute of internal auditors (2002) summarized the role of the internal audit function in relation to internal control as follows18: • assist management in designing a comprehensive assessment, including testing of controls across the organisation. • testing compliance with controls in functional areas, reporting results to management and, if relevant, to the audit committee. • assisting management in preparing a report on the effectiveness of internal controls. • identification of significant deficiencies in control, including elements of tone at the top, and reporting to the audit committee (for areas examined). • implement computerized testing techniques, such as continuous monitoring techniques, to monitor the effectiveness of controls. • facilitate understanding and development of controls within functional areas through control self-assessment techniques. locate(emile wolf international, 2010)the important roles of internal audit in an organisation, all designed to assist an organization in achieving effective corporate governance, which is asfollows 19: • internal audit helps management monitor controls within the entity,the managerial task of monitoring controls may become difficult as the size and complexity of the entity increases; thus, internal audit can be a useful management tool for monitoring controls. • the internal audit function can be used to monitor the efficiency of operations,this is to ensure efficient and effective use of resources, especially in a competitive market. 17eke gift o (2018), “internal audit and corporate governance effectiveness in universities in rivers state”, european journal of accounting, auditing, and finance research, vol.6, no.4, p 41-42. 18 institute of internal auditors (2000). “standards for the professional practice of internal auditing altamonte springs”, florida: the institute of internal auditors research foundation. 19 emile wolf international (2010). "advanced audit and assurance: international". berkshire: emile wolf publishing ltd. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 81 www.americanjournal.org • in countries where there are a large number of legal and accounting regulations, management can use internal auditors to ensure compliance with laws and regulations. • for organizations that operate complex it systems, the internal audit function can assist management in reviewing the effectiveness of controls within those systems. and thein the discussion on the role of internal audit in corporate governance, addresswhoever (karagiorgos, drogalas, gotzamanis, tampakoudis)this issue is examined by examining the relationship between internal audit and the basic elements of corporate governance. they indicated that, with regard to the relationship between the internal auditor and managers, the internal auditor's contribution to corporate governance is to provide information to managers who need itato carry out their responsibilities in the management of the institution.and thefurthermore, internal audit assists the board of directors in self-assessment of governance.and thebased on internal audit's relationship with the audit committee,finternal audit contributes to corporate governance by: bringing best practice ideas on internal controls and risk management processes to the attention of the audit committee;and theprovide information about any fraudulent activities or wrongdoing;and thecarry out annual audits and report the results to the audit committee; encouraging the audit committee to conduct periodic reviews of its activities and practices. finally, regarding the relationship between the internal auditor and the external auditor, they indicated that the internal auditor supports and cooperates with the external auditor to enhance the overall quality of the external audit.20. third: analyzing the relationship between internal audit and corporate governance he achieved the development of internal audit has made remarkable achievements, but many gaps remain, particularlyin the rapid development of the modern corporate system,fthe role of corporate governance has become particularly important.and thesound governance requires checks and balances from various factors, while internal audit plays an important role. 1) internal audit is an integral part of corporate governance the board of directors, executive management, external audit and internal audit mainly determine the soundness and security of the company's governance structure,the healthy development of a company is inseparable from a solid governance structure.and theboards of directors and senior management need to fully understand the various factors and risks that threaten the achievement of objectives.and thein the process of implementing the goal, different performance situations may have deviations that affect the achievement of the goal. the corporate governance structure has achieved effective checks and balances. thus, in the field of corporate governance, internal audit plays an indispensable role21. 2) the role of internal audit in strengthening the corporate governance structure in advanced foreign companies, in order to better manage the company, they all attach great importance to internal audit, which shows that the company's sustainable development cannot be separated from internal audit.and theinternal audit plays a facilitating role in corporate governance structure, particularly in the following two points: 20 karagiorgos, t., drogalas, g., gotzamanis, e. & tampakoudis, i. (2010), “internal auditing as an effective tool for corporate governance”, journal of business management, 2 (1), 15-22. 21 jianjun zou (2019), “on the role of internal audit in corporate governance”, american journal of industrial and business management, 9, p 65-66. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 82 www.americanjournal.org a) internal audit is an important means of promoting effective corporate governance under the modern corporate system, “rights and responsibilities are clear,howevershareholders lack an understanding of company operations and there is a potential for decision risk,while management places importance on operational risks and loss prevention, it may ignore internal regulatory and audit risks. b) internal audit and corporate governance have a common goal corporations are profit-seeking organizations, and the effectiveness of corporate governance is related to the degree of coordination of the rights of the various rights holders.and thecorporate governance aims to achieve a good balance between this relationship, and thus provide a guarantee for the continuous growth of the company's economic interests as an independent and objective existence within the organization.22. 3) the impact of corporate governance on the internal audit environment on the one hand, corporate governance can enhance the independence and authority of internal audits, finternal audit is what promotes continuityyehcompany profitabilityand theit is key distinguishingha, and whenyou ignore the treacherycompany problemswill leadbusiness failure.and theto ensure the authority of the internal audit, companies must create conditions for the independent work of the audit department.23. section three:the effectiveness of internal audit in enhancing corporate governance in iraq to measure the effectiveness of internal audit systems in enhancing corporate governance in iraq, we will prepare a field study, as follows: 1. field study procedures the researchers discuss the method and procedures used in carrying out the study,this includes a description of the study population, the study sample, the method of preparing its tools, and the statistical methods used to test the hypotheses of the study. the study population is the group of elements that the researcher seeks to generalize the results related to the problem. the study population consists of:a number of iraqi companies. 2. the study sample the study sample was selected according to its scientific specifications that achieve the objectives of the study from the internal auditor, the external auditor, the accountant, the risk office, and the investment officer, to achieve the purpose of the study. 3. data collection (50) questionnaires were distributed to the previously selected and targeted sample to verify the hypotheses of the study., and thea total of (50) questionnaires were collected for analysis, (100%), in order to achieve accurate results and disseminate them to the study population.and thethe researchers are keen to diversify the study sample in terms of its coverageaccording tothe following: a. individuals of all ages (less than 30 years old, 30 years old, less than 35 years old, 35 years old and less than 40 years old, and more than 40 years old). 22 lu, wh (2017), “research on internal audit quality control of xy company”, thesis, chongqing university of technology, chongqing. 23 qiang, hd (2015), “role positioning and function reconstruction of internal audit in corporate governance”, thesis, lanzhou business school, lanzhou. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 83 www.americanjournal.org b. individuals with different qualifications (bachelor's, higher diploma, master's, phd, others). c. individuals from various scientific disciplines (accounting, financial and banking studies, business administration, accounting information systems, economics, and others). dr.. individuals of different professions (internal auditor, external auditor, accountant, risk office, investment officer, department head, others). e. individuals with different years of experience (less than 5 years, 5 years, less than 10 years, 10 years, less than 15 years, 15 years, less than 20 years, and more than 20 years). section three: study methodology, method and procedures introduction the questionnaire was used to collect data from the research community, which requires an accurate and clear preparation of its paragraphs, and therefore its data is used in the statement of the applied side of the research, to conduct statistical analysis to reach the results that are interpreted in the light of the research literature related to its subject, and thus achieve the goals that it seeks to achieve. accordingly, this section deals with the procedures and methodological steps that were taken in the field of the field study, as it deals with the study methodology, the study community, and the sample to which the study was applied, in addition to clarifying the tools used in the study and its steps, and the statistical methods that were used in analyzing the data to communicate the results, and then achieving the objectives of the study. this section also includes a description of the necessary procedures in codifying and applying research tools, and finally the statistical treatments that were used in the research analysis. study approach yaatextending the study approach to analyzing the phenomenon, revealing the relationships between its various dimensions, and finding a scientific explanation and conclusion in its light, which is the organized method used to solve the research problem, in addition to it being the science that is concerned with how to conduct scientific research. whereabaptizedtthis study is based on the descriptive analytical method to obtain sufficient and accurate information about the impact of internal auditing on corporate governance in the institutions in the sample studied, and then analyze and interpret it in order to identify indicators for addressing the problem. the study population and its sample the study population is represented by the internal auditors of the public production companies in iraq, within the borders of the city of baghdad, represented by three companies: (al-kindi for the production of veterinary vaccines, al-fallujah for the production of construction materials, and al-iraqi for the production of seeds). and was chosenthese companiesdue to the large volume of business in it and the concentration of a large number of internal auditors in it. in view of the difficulty of communicating with all members of society, a random sample of internal auditors was chosen.72a questionnaire was given to them, and it was found that all are valid questionnaires for analysis. study hypotheses: this study is based on a set of hypotheses aimed at examining the nature of the impact of the independent variable "internal audit" with its dimensions (planning, timing and scope of the audit, american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 84 www.americanjournal.org financial risk statement, reducing the costs of the audit process), and the dependent variable "corporate governance" and its sub-variables (an effective framework for governance, stakeholder practice of management, application of the principle of management responsibilities, and promotion of accounting disclosure). the following is an explanation of these hypotheses. the first hypothesis: there is no statistically significant effect at the level of significance (0.05) regarding the perceptions of workers in public production companies in iraq about the availability of aspects of enhancing internal auditing. the second hypothesis: there are no statistically significant differences in the perceptions of workers in public production companies of the impact of internal auditing on corporate governance due to demographic variables (age, job degree, academic qualification, number of years of job experience, academic specialization). the following sub-hypotheses are derived from this hypothesis: there are no statistically significant differences between age and perception of the impact of internal auditing on corporate governance. there are no statistically significant differences betweenspecialization academicand thevisualize the impact of internal auditing on corporate governance. there are no statistically significant differences betweendegree functionaland thevisualize the impact of internal auditing on corporate governance. there are no statistically significant differences between the educational qualification and the perception of the impact of internal auditing on corporate governance. there are no statistically significant differences betweennumber years experience functional andvisualize the impact of internal auditing on corporate governance. the third hypothesis: there is no statistically significant effect at the level of significance (0.05) of the internal audit carried out by the internal auditors on achieving corporate governance in the public production companies in iraq. study tools a special questionnaire was developed and used to collect data with reference to relevant scientific studies and research. the questionnaire consisted of two parts: the first section is general data: the general data about the participants in the study is represented in all data related to educational qualification, experience, age, and others. section two: this section contains phrases related to the subject under study. it is divided into two axes as follows: the first axis: this axis includes:24paragraph aboutaspects strengthen audit procedure in the company, namely:(planning, timing and scope of the audit, financial risk statement, reducing audit costs). the second axis: it includes:11a paragraph about the extent to which internal auditing contributes investigation corporate governance with its dimensions (an effective governance framework, stakeholder practice of management, applying the principle of management responsibilities, enhancing accounting disclosure), in the general productive companies in iraq. all the questionnaire phrases were formulated in a positive way, and each of its phrases was given a graded weight on the five-point likert scale to estimate the degree of achievement of the phrase to american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 85 www.americanjournal.org answer the paragraphs of the axis in the questionnaire, and the answers according to this scale are limited to: strongly agree, agree, somewhat agree, disagree, strongly disagree. the weights of the responses to the paragraphs were determined according to the following table: table () weights of responses according to the five-point likert scale degree of approval weight range of weighted average percentage level of approval significance level strongly agree 5 from 4.20 to 5 84-100 very high ok 4 from 3.40 to 4.19 68-83.99 high somewhat ok 3 from 2.60 to 3.39 52-67.99 medium not agree 2 from 1.80 to 2.59 36-51.99 weak strongly disagree 1 from 1 to 1.79 20-35.99 non-existent the validity of the tool the validity of the questionnaire means making sure that it will measure what it was intended to measure, as it means by honesty and the inclusion of the questionnaire for all the elements that must be included in the analysis on the one hand, and the clarity of its paragraphs and vocabulary on the other hand, so that it is understandable to everyone who uses it, and the validity of the research tool has been confirmed as well follows: in order to ascertain the validity of the measurement tool and to ensure that the statements that make up the questionnaire can lead to accurately collecting the required data, choosetthe researcher has two ways to achieve this purpose: apresenting the questionnaire in its initial form to a number of its membersandteaching staff specialized in the field of internal auditing, statistics and scientific research, with the aim of evaluating the questionnaire, in terms of the clarity of the phrases and the extent of their ability to be understood and assimilated by the respondents, and their connection to the problem of the study and its hypotheses. some opinions and observations were presented about the questionnaire's expressions, which led to the formulation of some of its expressions, in accordance with those observations made by the arbitrators. bchoosing a random sample of the members of the community under studystudy pilot in order to find out the appropriateness and clarity of the questionnaire statements for the respondents, and the appropriate adjustments were made in the light of their observations. the researcher presented the research tool in its initial form to a group of arbitrators consisting of (5) members of the faculty at the faculty ofbusiness managementat al-mustansiriya university and public production companies in iraq, they specialize in:business administration andinternal audit and statistics. the arbitrators were asked to express their opinions on the appropriateness of the phrases to measure what they were developed for, the clarity of the wording of the phrases, and the appropriateness of each phrase to the axis to which it belongs. and the adequacy of the phrases to cover each of the axes of the basic variables of this study, in addition to suggesting what they deem necessary to amend or delete the wording of the phrases, or add new phrases to the research tool, as well as expressing their opinions regarding the primary data (the personal and functional characteristics required of the respondents). the arbitrators' directives focused on criticizing some paragraphs and the need to amend them in line with the axes of the questionnaire, and some arbitrators advised adding some phrases to the axes of the questionnaire. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 86 www.americanjournal.org based on the observations and directions made by the arbitrators, the amendments agreed upon by most of the arbitrators were made, as the wording of the phrases was amended and some others were deleted or added. tool stability for the purpose of verifying the stability of the tool, the researcher used the internal consistency coefficient of the tool's expressions through the cronbach alpha equation, which was applied using the statistical package for social sciences program.spss. a statistically acceptable value for cronbach's alpha coefficient is of 60% or more. the reliability test was conducted on the respondents' answers to the questionnaires, and the results were as shown in the table (). table () stability coefficient for the main axes of the questionnaire the hub cronbach alpha coefficient levelinternal auditi havethe company's internal auditors 0.927 the contribution of internal auditing in its dimensionsinvestigationcorporate governance 0.881 all phrases of the interlocutor 0.951 through the data of the table (), we notice that the values of the cronbach alpha coefficient for all the statements of each axis of the questionnaire and for all the statements of the axes are greater than 60.0%, and this indicates a strong correlation between the answers of the study sample on each group of the statements of the questionnaire axes. therefore, the contentformthe questionnaire has a high degree of stability, stability and reliability, and then we can recognize the validity of the results reached through the field study and then the possibility of circulating it to the community under study. study procedures first: the demographic characteristics of the study participants: distribution of study participants according to academic qualification.and thetable ( ) shows the frequency and percentage distribution of the participants in the study according to the educational qualification. table () frequency and percentage distribution of study participants according to educational qualification qualification the number percentage ph.d 1 1.4 master's 8 11.1 ba 34 47.2 diploma 29 40.3 the total 72 100 it is clear from the data presented in table ( ) that1.4% of the participants in the study hold a doctorate degree, while the percentage of master’s degree holders reached 11.1%, while the percentage of bachelor’s degree holders amounted to 47.2%and holders of intermediate qualification percentage40.3% of the sample. thus, we note that the percentage59.7 of the participants in the study american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 87 www.americanjournal.org hold high academic qualifications, and the fact that the participants in the study have these academic qualifications increases the level of confidence intheir auditing capabilities. distribution of participants in the study according to the number of years of experience in the field of internal audit table ( ) shows the frequency and percentage distribution of study participants by years of experience. table () frequency and percentage distribution of study participants according to years of experience years of experience the number percentage less than 5 years 40 55.6 from 5 to less than 10 years 13 18.1 from10to less than 15 years old 8 11.1 from15thand more 11 15.3 the total 72 100 table () shows that the number of years of experience in the field of internal auditing15thyear or morereachrate18.1% of the research sample, and the number of years of experience "5 to less than 10 years" was 18.1% of the research sample, and thethe number of years of experience in the field of internal auditing is "10 to less than 15 years."11.1% of the research sample, while the number of years of experience in the field of internal audit "less than 5 years" amounted to 55.6%. these percentages are high and give an indication of the presence of good years of experience among the research sample, and this means that most of the participants in the study have extensive experience in their field of work, which enables them to understand the nature of the subject under study and answer the questionnaire questions correctly. distribution of study participants according to age table ( ) shows the frequency and percentage distribution of study participants by age. table ( ) frequency and percentage distribution of study participants by age age group the number percentage less than 30 years old 28 38.9 from 30to less than 40 years old 35 48.6 from40to less than50year 7 9.7 50year or more 2 2.8 the total 72 100 from the data of the previous table, it is clear that the age group that took the largest percentage in the study sample is the category from 30 to less than 40 years old48.6%,the age group came in second placeless than 30 years old, with a rate of 38.9%, and those who reached their agefrom40to less than50yearpercentage 9.7%as for their age50years or more, so their percentage was small and did not exceed2.8%.from the previous ratios, it can be concluded that the study sample has a good level of awareness, which is reflected positively in answering the questions posed to them in the questionnaire. distribution of study participants according to their job title table ( ) shows the frequency and percentage distribution of study participants according tofunctional class. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 88 www.americanjournal.org table () frequency distribution and percentage of study participants according tofunctional class functional class the number percentage director general 2 2.8 associate director 7 9.7 head of the department 7 9.7 investment officer 6 8.3 finance audit 12 16.7 accountant 38 52.8 the total 72 100 table (3) shows that2.8% of the research samplefunctional classfor them "director general",and thewhat is its ratio?9.7% of the research sample"assistant director",and what is its ratio?9.7% of the research sample"head of the department", and the52.8% of the research samplefunctional classfor them "accountant", and the16.7% of the research samplefunctional classfor them "finance audit",and what is its ratio?8.3% of the research sample"investment officer". distribution of study participants according tospecialization scientific table ( ) shows the frequency and percentage distribution of study participants according tospecialization scientific. table () frequency distribution and percentage of study participants according tospecialization scientific professional certificate the number percentage accountant 22 30.6 economic sciences 5 6.9 business administration 13 18.1 professional 25 34.7 audit 7 9.7 the total 72 100 table () shows that its ratio30.6% of the research sampletheir scientific specialization"accounting audit specialization", and thewhat is its ratio?6.9% of the research sampletheir scientific specialization"economic sciences", and what is its ratio?18.1% of the research sampletheir scientific specialization"business administration", and thewhat is its ratio?34.7% of the research sampletheir scientific specialization"professionaland what and what is the ratio9.7% of the research sampletheir scientific specialization"audit". second: examination of study hypotheses (1) testfirst hypothesis: first hypothesis:there is no statistically significant effect at the level of significance (0.05) regarding the perceptions of workers in public production companies in iraq about the availability of aspects of enhancing internal auditing. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 89 www.americanjournal.org and theto find outperceptions of workers in public production companies in iraq about availabilityaspects strengthen audit procedurethe arithmetic mean and standard deviation were calculated for the sample, and the following table shows this. table (...) the arithmetic mean and standard deviationfor perceptions staff in companies productivity the public in iraq around bezel availability aspects strengthen audit procedurein the iraqi public production companies. x paragraphs sma standard deviation test valuet effect size sort according to the arithmetic mean dimension 1: assistance in planning, timing and scope of the audit 1 providing a written guide to the internal and analytical procedures necessary for the auditing profession 1.92 0.727 22,378 0.735 fifteenth 2 having effective oversight on all internal and financial aspects 1.79 0.786 19,339 0.795 eighteen 3 existence of accounting, financial and technical standards upon which the establishment relies in preparing its financial plans 1.78 0.809 18,651 0.817 nineteenth 4 review the audit planning memorandum for the previous year 2.01 0.942 18,143 0.952 twelveth 5 reviewing the internal system of the establishment and the articles of incorporation 2.17 0.787 23,354 0.796 vi the second dimension: a statement of the financial risk that may surround the establishment 6 auditor inquiryabout matters of importance that may affect the financial performance of the company in the current period 2.14 0.844 21,496 0.853 vii 7 the auditor's discussion with the management of any factors that may affect the company's business 2.13 0.855 21,095 0.864 viii 8 the accuracy of the internal system in proving financial transactions 1.99 0.813 20,289 0.840 thirteent h 9 examining the balances of various accounts and trial balances in order to infer the existence of unusual account balances 1.90 0.891 18,128 0.900 sixteen 10 compare the current year's account balances with the previous year's account balances 1.94 0.837 19,705 0.846 fourteenth 11 calculating the financial ratios of the establishment and comparing them with the rates of the similar sector 2.07 0.893 19,658 0.903 the tenth 12 interpretation of deviation of actual data from planning budgets and forecasts 2.13 0.804 22,432 0.812 viii 13 ensure the reasonableness of dues and note the existence of any unusual dues 2.10 0.966 18,413 0.977 ninth american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 90 www.americanjournal.org x paragraphs sma standard deviation test valuet effect size sort according to the arithmetic mean 14 ensuring the reasonableness of the opening balances of the budget accounts at the start of the audit process (such as the accumulated depreciation in terms of the appropriateness of the provision with the period of use of the asset) 2.10 0.842 21,138 0.851 ninth the dimensionthirdreducing the costs of the internal audit process 15th the auditors are aware of the company's operations, and they are trained in the work they perform 1.90 0.858 18,808 0.868 sixteen 16 the applied policies are compatible with plans, procedures, local laws, and the internal system of the facility 2.03 0.769 22,386 0.777 eleventh 17 the existence of a strong internal control system so that objectives and powers are objective and monitored 1.85 0.833 18,806 0.842 seventeent h 18 reducing the time and effort required to complete the audited financial statements. 2.17 0.904 20,341 0.914 vi 19 not needing to audit all financial transactions and limiting it to those that arouse the interest of the auditor based on analytical tests 2.38 0.985 20,461 0.995 the first 20 carry out the audit process with the least possible number of auditors 2.26 0.872 22,030 0.881 fifth 21 the possibility of carrying out the audit process by auditors with medium experience 2.31 0.914 21,410 0.924 the fourth 22 the possibility of carrying out the audit through the computers available to the auditor 2.14 0.877 20,694 0.886 vii 23 there is no need for specialized auditors to carry out the audit process (analytical audit procedures) and it can be done through the staff that already exists 2.35 0.922 21,608 0.932 the second 24 no additional information is needed beyond that available to the auditor 2.32 0.990 19,871 1,001 third by looking at the table (...) it turns outpresencestatistically significant effectbelonging to perceptions staff in companies productivity the public in iraq around bezel availability aspects strengthen audit procedure.wherethat the arithmetic mean of a measureaspects of promotionaudit processthe internal affairs of the companies under study, namely: public production companies in iraq ranged between 2.38 and 1.78,the effect size ranged from 0.735 to 1.001, i.e. medium to largewhich indicates the tendency of perceptionsthe researched sampletowardcheck the dimensions of internal audit, which include:(planning, timing and scope of the audit, financial risk profile, reducing audit costs).this is an indication for mebezeleffectivenessaspectsstrengthening internal auditin iraqi public production companies according to perceptionsthe study sample. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 91 www.americanjournal.org (2) a testimpositionsecond: the premise the second:no exist effect with indication statistic when level indication(0.05)to check procedure that get up with it auditors internals on me investigation governance companies in companies productivity the public in iraq. and theto find outaudit effect procedure that get up with it auditors internals on me investigation governance companies in companies productivity the public in iraqthe arithmetic mean and standard deviation were calculated for the sample, and the following table shows this. table (...) the arithmetic mean and standard deviationfor audit effect procedure that get up with it auditors internals on me investigation governance companies in companies productivity the public in iraq. x paragraphs sma standard deviation test valuet effect size sort according to the arithmetic mean an effective corporate governance framework 1 the internal auditor evaluates the achievement of the company's strategic objectives 1.90 0.772 20,913 0.780 eleventh 2 the internal audit department of the company prepares a report on the effectiveness of the internal control system and submits it to the board of directors periodically 2.00 0.769 22,065 0.777 viii 3 revealthe company's internal auditor examines deficiencies in the internal control system through continuous follow-up of the company's activities 2.00 0.751 20,737 0.759 viii 4 the corporate governance structure raises the level of transparency and efficiency 1.76 0.722 20,014 0.729 thirteenth 5 the company's governance is consistent in dividing responsibilities between the different departments responsible for supervising control 2.07 0.877 21,620 0.887 the fourth 6 governance requires the application of the law 1.85 0.725 21,948 0.733 twelveth stakeholders' practice of the methods of exercising administrative powers 8 ensure respect for the rights of interests protected by law within the community 1.74 0.671 23,833 0.678 fourteenth 9 the company's internal law guarantees the right to compensation for stakeholders 2.00 0.712 22,892 0.720 viii 10 the existence of an effective working mechanism between the stakeholders and the board of directors in order to ensure the continuity of the company 1.97 0.731 22,202 0.739 ninth applying the principle of management responsibilities 11 with the existence of internal audit, effective control over the executive management is achieved by the board of directors 1.93 0.738 19,635 0.746 the tenth 12 with the presence of internal audit, the board of directors selects its members and its basic tasks 2.10 0.906 21,113 0.916 third 13 the audit committee is one of the main pillars of corporate governance 2.10 0.906 22,940 0.916 third american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 92 www.americanjournal.org x paragraphs sma standard deviation test valuet effect size sort according to the arithmetic mean 14 seekthe internal auditor in the company to apply governance 2.11 0.848 24,719 0.858 the second 15th by the presence ofthe company's internal auditor ensures the quality of financial reports and increases the importance of accounting information 2.03 0.750 22,610 0.758 vii 16 with the presence of internal auditing, interaction takes place between the board of directors, senior management and the internal auditor to ensure sound governance 2.04 0.701 24,719 0.708 fifth 17 with the presence of internal auditing in the company, the board of directors ensures the strategic direction and direction of the company 2.00 0.751 22,610 0.759 viii enhancing disclosure and transparency 18 works audit procedure on me a guarantee transparency and disclosure and audit in same the time 1.97 0.691 24,203 0.699 ninth 19 works audit procedure on me disclosure about goals enterprise 2.04 0.740 23,412 0.748 vi 20 works audit internal on disclosure about policy rewards members board administration 2.25 0.900 21,215 0.910 the first 21 associated boss audit procedure with the highest level in the structure organizational for the company 2.06 0.870 20,041 0.880 fifth by looking at the table (...) it turns outpresencestatistically significant effectto the effect of afor internal auditperformed by the internal auditorson meinvestigationcorporate governance in public production companiesin iraq.wherethat the arithmetic mean of a measureeffectaudit processthe internal governance of the companies under study, namely public production companies in iraq ranged between 2.25 and 1.47,and the size of the effect ranged between 0.699 and 0.916, that is, medium to largewhich indicates the tendency of perceptionsthe researched sampletowardcheck the dimensions of internal audit, which include:(planning, timing and scope of the audit, financial risk profile, reducing audit costs)no impact .... on corporate governance under study.this is an indication for mebezeleffectiveness of internal auditinfluencing governance in iraqi public production companies according to perceptionsthe study sample. (3) a testthe third hypothesis: the premise third:there are no statistically significant differences in the perceptions of workers in public production companies of the impact of internal auditing on corporate governance due to demographic variables (age, job degree, academic qualification, number of years of job experience, academic specialization). the following sub-hypotheses are derived from this hypothesis: − there are no statistically significant differences between age and perception of the impact of internal auditing on corporate governance. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 93 www.americanjournal.org − there are no statistically significant differences between the academic specialization and the perception of the impact of internal auditing on corporate governance. − there are no statistically significant differences between the job grade and the perception of the impact of internal auditing on corporate governance. − there are no statistically significant differences between the educational qualification and the perception of the impact of internal auditing on corporate governance. − there are no statistically significant differences between the number of years of job experience and perception of the impact of internal auditing on corporate governance. table () to study the third hypothesis, the variance test was conducted between demographic variables as independent variables and the impact of internal auditing on corporate governance as a dependent variable. the independent variable valuesfcalculated moral level the age 0.832 0.481 educational qualification 1,546 0.211 functional class 2,053 0.083 number of years of job experience 1,468 0.231 academic specialization 2,675 0.039 table () a study of the effect size of demographic variables and the impact of internal auditing on corporate governance variable effect size the age 0.753 educational qualification 0.723 functional class 1,553 years of experience 1,147 academic specialization 1,645 by looking at the table (...) it turns out there were no statistically significant differences at the level of significance0.05among the average responses of the participants in the study about the role of internal auditing in achieving corporate governance for internal auditors are attributed to the following personal variables (educational qualification,functional class, age, number of years of experience), exceptacademic specializationwhere there were statistically significant differences between the average responses of the respondents.thus, it appears that there is nostatistically significant effectin the perceptions of workers in public production companies of the impact of internal auditing on corporate governance due to demographic variables (age, degree functional, qualification scientific, number years’ experience functional, specialization academic).where that effect size to measure the impact of the internal audit process on z governance in the companies under study, which are the public production companies in iraq, ranges between0.723and the1.645, from medium to very large. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 94 www.americanjournal.org conclusion: through the previous ideas, we discussed the concept of corporate governance and internal auditing, and then worked to find the link that allows internal auditing to submit to the requirements of applying corporate governance and its foundations and rules aimed at directing the activities of the internal auditor towards activating corporate governance and its principles. the emergence of corporate governance principles has also led to a change in the concept of internal auditing from the traditional concept of evaluating the efficiency and effectiveness of systems within companies to leading and managing corporate risks after identifying them. among the most important results we reached are the following: − prepareinternal auditserve as nan independent, objective assurance and advisory activity designed to add value and improve an organization's operations, as suchhelps the organization achieve its goals by providing a structured and disciplined approach to assessing and improving the effectiveness of risk management, control and governance processes.and thegovernance has become a topicprominently in recent times, especially after the global financial crisis of 2008, which contributed to weak governance and control systems over companies, as suchevidence is mounting of the critical role it plays in determining the well-being of society. − the internal audit function is not limited to accountability to the management of the company but also has a fiduciary responsibility towards the shareholders and stakeholders as well as towards the external community.and thein fact, the internal audit is an independent monitoring and control mechanism on whether the credit party is effectively fulfilling its economic responsibilities.and thewith the development of market economy and the progress of enterprise economic management,and thethe issue of internal audit is not limited to the financial aspect, but also extends to the field of management. − thatthe corporate governance mechanism is the core of the modern enterprise system, and its effectiveness or otherwise is an important factor affecting the company's performance.and thereasonable and effective internal audit is a prerequisite for good corporate governance and forms one of the four pillars of corporate governance, together with the board of directors, senior management and external audit. − presence effect with indication statistic belonging to perceptions staff in companies productivity the public in iraq around bezel availability aspects strengthen audit procedure.where that average arithmetic to measure aspects strengthen proces audit procedure companies shop the study , which companies productivity the public in iraq ranges between2.38and the1.78,as such that size effect ranged between0.735to me1,001which from from medium to me big than indicates to me mile perceptions the sample surveyed toward verification dimensions audit procedure which include:(planning and timing and scope checking, statement risk finance, discount costs proces audit).and this is prepare an indicator on bezel effectiveness aspects strengthen audit procedure in companies productivity the public iraqi according for perceptions a sample the study. − presencestatistically significant effectto the effect of afor internal auditperformed by the internal auditorson meinvestigationcorporate governance in public production companiesin iraq. where is the arithmetic mean of a measureeffectaudit processthe internal governance of the companies under study, namely public production companies in iraq ranged between 2.25 and 1.47,and the size of the effect ranged between 0.699 and 0.916, that is, medium to largewhich indicates the tendency of perceptionsthe researched sampletowardcheck the dimensions of internal american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 95 www.americanjournal.org audit, which include:(planning, timing and scope of the audit, financial risk profile, reducing audit costs)the impact of internal auditing on the corporate governance under study.this is an indication for mebezeleffectiveness of internal auditinfluencing governance in iraqi public production companies according to perceptionsthe study sample. − there were no statistically significant differences at the level of significance0.05among the average responses of the participants in the study about the role of internal auditing in achieving corporate governance for internal auditors are attributed to the following personal variables (educational qualification,functional class, age, number of years of experience), exceptacademic specializationwhere there were statistically significant differences between the average responses of the respondents.thus, it appears that there is nostatistically significant effectinperceptionsworkers in public production companiestoimpact of internal auditcorporate governance due to variables demographic (age, degree functional, qualification scientific,number years experience functional, specialization academic). whereaseffect sizeto measure the impact of the internal audit process onzgovernance in the companies under study, which are the public production companies in iraq, ranges between0.723and the1.645, from medium to very large. in light of these results we recommendwith the following: − necessity expansion function audit procedure and expand it to fit in environment governance companies modern.include jobs traditional the four to check procedure function supervisory and a job censorship and a job evaluation and the job advisory. − necessity that target audit procedure addition values to me business, as function the basic to check procedure existing on me governance companies should that be without doubt addition values. − necessity that takes application principles governance in consideration effect the changes environmental that pass changes a quick and continuous in all aspects economic and political social. − necessity detection about data discloser about her in a way honest and fair and objective between all contributors and owners interest in the time the appropriate and without delay. − on me a committee audit construction function audit internal characterized independently and advance evaluation controlled internal and issues other with a goal a plus effectiveness a committee audit quality reports finance. the reviewer 1. mustafa muhammad siddiq, muhammad hussein ali al-sawaf, and jassim muhammad hesso (2016), “activating the role of internal audit in the framework of corporate governance: a field study of a number of private banks in nineveh governorate,” al-taqni magazine, issue (29), issue (1). 2. 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companies”, theoretical and applied economics volume xvii, no. 2(543). american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 18 www.americanjournal.org the role of the dimensions of the target cost approach in pricing banking services for commercial banks to achieve a sustainable competitive advantage raheem abed mohammed karbala technical institute, al-furat al-awsat technical university. karbala, iraq. inkr.rhm@atu.edu.iq a b s t r a c t k e y w o r d s the aim of the study is to determine how the use of the target cost method for pricing banking services affects the ability to maintain a sustainable competitive advantage. while the study focused on finding a solution to the issue of the multiplicity and diversity of these services provided to customers, as well as increasing the use of technology through which services are provided, which exposes commercial banks to high competition in the banking services market. to achieve the objectives of the study, a questionnaire consisting of several paragraphs was designed, addressed to a group of (80) clients dealing in the banking sector. as for the study sample, (10) commercial banks operating in this financial sector were selected, and many statistical methods were used to achieve the objectives of the study. after conducting the study analysis process and its hypotheses, the study reached a number of results, the most important of which is that most commercial banks apply the target cost method. there is a need to adopt the target cost approach in pricing in order to ensure the survival and continuity of the sustainable competitive advantage, as all of the paragraphs that measure the competitive advantage in commercial banks obtained high averages. this is an indication that the pricing of services in these commercial banks is done through the target cost method, in addition to the development of cost systems that effectively contribute to the decision-making process. the study reached a number of recommendations, the most important of which is the need for commercial banks to expand the application of the target cost approach to achieve benefits, benefits and competitiveness in light of global economic and technological developments, as well as working to educate banks about the importance of this approach and its advantages through holding seminars and training courses by the central bank. aware of the importance of using target costing in this field, the study also target costing, pricing of banking services, sustainable, competitive, advantage. mailto:inkr.rhm@atu.edu.iq american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 19 www.americanjournal.org recommended that commercial banks increase the use of the target costing approach to achieve the advantage of sustainable competition. introduction: the banking services industry is characterized by its wide variety and expansion to touch the daily life facilities of contemporary societies, especially after the emergence of new banking services that differ from the traditional services that prevailed in previous periods. in addition to the advanced information systems that are used, which led to the racing of these banks in their reliance on these methods with the aim of facilitating the implementation of their banking activities and satisfying customers. the policy of setting the price for banking services is a difficult and complex process. therefore, setting the price must be carried out according to well-thought-out principles and rules that take into account not only supply and demand, and competitors’ prices, but also and most importantly, the cost of the service itself. since the price paid for a particular service comes among the customer's priorities, the consumer has become the main determinant of the price, as the latter is considered one of the most important factors affecting the success of the institution and increasing its competitiveness. based on this, it became necessary for any financial institution to search for ways to price its services in order to achieve customer satisfaction and at the same time help in achieving the objectives of the institution. thus, banking institutions must improve and develop methods of pricing their banking services in order to be able to ensure their continuity in the market. among these methods, we find the target cost method, which seeks to achieve the satisfaction of each of the customer by focusing on high quality at the right price and on the satisfaction of the institution through achieving profits to sweep the markets and the sustainability of competition for them. hence, the impact of the target cost on the competitive advantage will make banks pioneers and able to obtain a large market share. as for the elements of competitive advantage represented in cost, which enables the organization to obtain the largest possible market share, and the quality that makes the customer trust what the organization offers, creativity, which represents the engine of attraction for the organization, as well as flexibility, the speed of response to changes that occur in the design of banking services and to suit the customer makes him the most desirable to the customer, and time or delivery is the last element in the competitive advantage is either to increase or decrease customers so that the product or service arrives at the right time it makes him successful and distinguished. search method: first: the problem of the study commercial banks face a number of challenges in their pursuit of success and continuity, or a sustainable competitive advantage, as a result of the market for financial services is experiencing increased competition due to the variety and abundance of these services, as well as the growing use of technology to deliver high-value services. the ability of the bank management to apply the target costing strategy and allow the banks to reach their desired goals depends on more than just that; the bank must also have the appropriate components. in addition to working to develop new services that cater to consumer needs, banks should make sure that these services are offered at a level of quality and cost that is acceptable to the client and their capacity to pay for the service. as a result, the research dilemma can be summarized in the following questions: american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 20 www.americanjournal.org 1 do commercial banks operating in the banking industry in iraq have what is required to use the target cost method when pricing banking services to gain a long-term (i.e. sustainable) competitive advantage? 2are banks operating in the iraqi banking industry aware of the benefits they obtain from using a target costing strategy to price their banking services in order to obtain a long-term (sustainable) competitive advantage? 3are there any obstacles or challenges that prevent banks operating in the iraqi banking sector from using the target cost method to establish a long-term (sustainable) competitive advantage? second: the aim of the study the primary objective of the study is to study how the application of target costing can be used to set prices for banking services in order to achieve a sustainable competitive advantage, especially because of the benefits it brings to planning and cost control, as well as the subsequent reduction of costs. the main objective led to the emergence of the following sub-objectives: 1knowing the elements of applying the target cost approach and the difficulties that banks face in applying the target cost. 2identifying the impact of applying the target cost approach on the pricing of banking services in order to achieve a sustainable competitive advantage. third: the importance of the study the banking sector suffers from a clear decline in the competition market due to the escalation of competition in the banking services market, economic openness and the entry of foreign banks with modern technologies in the competition market. therefore, the study seeks to apply the target cost approach in the iraqi banking sector to achieve a sustainable competitive advantage, and that is based on modern methods of calculating costs and determining prices and profit margins and leaving the traditional methods of determining prices, profit margins and costs, and that the pricing of services within the limits of the permissible costs after comparing them with the estimated costs in the light of the appropriate design that meets the desires and needs of the customer. fourth: the hypotheses of the study the adoption of the target cost approach leads to improving the competitive position and reducing costs for banking services and thus creating a sustainable competitive advantage in addition to increasing quality and offering services to banking financial markets where a sustainable competitive environment. the study attempts to test the following hypotheses: the main hypothesis(h01): there is no effect of the target cost variables (pricing of banking services, profitability in banks, attracting new customers and maintaining existing customers) on the competitive advantage in commercial banks in iraq at a level of statistical significance α ≤ 0.05. the following sub-hypotheses are derived from it: 1the first sub-hypothesis (h01.1): there is no effect of the target cost variables represented by (the pricing of banking services, profitability in banks, attracting new customers and maintaining american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 21 www.americanjournal.org existing customers) on the cost variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. 2the second sub-hypothesis (h01.2): there is no effect of the target cost variables represented by (the pricing of banking services, profitability in banks, attracting new customers and maintaining existing customers) on the quality variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. 3the third sub-hypothesis (h01.3): there is no effect of the target cost variables represented by (the pricing of banking services, profitability at banks, attracting new customers and maintaining existing customers) on the creativity variable in commercial banks in iraq at a statistical significance level of α ≤ 0.05. 4fourth sub-hypothesis (h01.4): there is no effect of the target cost variables represented by (the pricing of banking services, profitability at banks, attracting new customers and maintaining existing customers) on the flexibility variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. 5the fifth sub-hypothesis (h01.5): there is no effect of the target cost variables represented by (the pricing of banking services, profitability in banks, attracting new customers and maintaining existing customers) on the time variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. theoretical aspect: target cost target cost concept: there are many concepts explaining the target cost. (horngern) defined it as the estimated long-term costs of a particular product or service, if it is provided to customers, that enables the company to achieve a target income, the target profit margin is subtracted from the target price to arrive at this required cost. the target price was also defined as the estimated price for a product or service that prospective customers are willing to pay, and this estimate is based on customers' understanding and perception of the value of this product or service (horngren, et.al: 2006,680). (hilton, r. w, 2002) recognizing that the target cost is a useful tool for pricing, particularly in commercial markets with high levels of competition, where the prospects for the success of the product or service provide, prior to the allocation of productive resources to it, in contrast to pricing on the basis of cost. it is possible that the bank will discover that the price of the service is uncompetitive after the materials have been used in the production of the service. in the traditional approach, the cost is determined and then a profit margin is added to reach the price, but the alternative approach goes in the opposite direction. determining the price precedes the cost, as the pricing process according to the modern approach goes through the following stages: 1 defining the product or service for which the price is to be set. 2 determine the target price. 3 determine the target cost by deducting the desired profit margin from the target price. 4 service design and marketing within the framework of the target cost. from the above, it can be said that target costing is a method that aims to reduce product costs in the early stages of the product or service life cycle by making good use of available resources, taking into account the level of quality required, in light of the cost that customers accept in order to achieve the objectives of banks when providing services. the target cost differs from the classical approach, since american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 22 www.americanjournal.org instead of designing the product or service, its cost is determined, the target cost is determined first, and then the product is designed. the impact of the target cost can be measured through the following dimensions in commercial banks and as follows. first: pricing of banking services. second: the profitability of the banks. third: attracting new customers and maintaining existing customers (thompson & strickland: 2003,140). target cost dimensions: 1pricing of banking services banks achieve a minimum cost advantage if they can reduce the costs of their value-producing activities to the lowest levels compared to those achieved by their competitors (m. porter: 1993, 48), which makes them able to charge a price lower than the price of competitors while achieving the same level of profit or achieving greater returns if competitors resort to similar prices (charles and gareth: 2001, 150). in order for banks to achieve this advantage, they must have a good understanding and knowledge of critical activities in the value chain. the cost of banking services provided to customers plays an important role in pricing decisions for services, because the bank cannot achieve returns if the pricing is less than costs, and the pricing approach is divided on the basis of cost into: athe traditional curriculum in pricing: it depends on determining the total cost of the service and then setting the profit margin that the bank’s management desires and thus forming the final price of the service that is offered to it, and depends on pricing in the traditional curriculum on the basis of the total cost, the variable cost or the rate of return on investment and defects the traditional curriculum of pricing: ignoring the demand for the service, all that the bank has to do is to determine the costs for the product or service and then determine the profit margin it wants, as this method assumes that the customer needs and requests the expected quantities, regardless of the price (abu awwad: 2008, 56) the price is determined based on estimated figures for the costs of providing banking services to customers (garrison et al, 2006, 832). b target cost approach: it is a modern approach to determining the cost of banking services. it is based on starting with setting the target price that the customer wants and the customer can benefit from for the service, and then determining the profit margin that the bank wants to achieve, and then subtracting that margin from the target price; the target cost is determined in this way. in other words, this method deviates from the traditional pricing strategy, which starts with target price and ends with target cost. (abu awwad, 2008, 58), target costing is an effective pricing strategy in markets with high levels of competition, that is, it allows an accurate assessment of the likelihood of success of the product before allocating productive resources to it, in contrast to pricing based on cost, the bank may find that the price of the service is uncompetitive after using the resources to produce it (al-khalaf and zoelf: 2007, 175). 2 profitability of banks (al-ajarmah, 2005: 487) maximizing profits: where profit is one of the primary objectives of banks, which means achieving reasonable rates of profits for shareholders. the level of required profits varies from one bank to another. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 23 www.americanjournal.org maximizing the return on investment: the objective of pricing banking services on the basis of the target cost approach may be to achieve the required rate of return on the money invested in the bank, so the bank’s management may set prices on the basis of that percentage, meaning that the required percentage of return is added to the cost of the service. 3 attracting new customers and maintaining existing customers: any business's success comes from its customers, who also serve as the foundation for its survival, expansion, and prosperity. however, today's customers have different expectations than they did in the past. the priority nowadays is to retain customers, with efforts to increase customers and attract new customers in second place. in the beginning, marketing relied solely on acquiring new customers without focusing on their continued financial dealings with the bank or ensuring their continued cash flow. however, financial markets are highly competitive, with thousands of companies competing to win customers, no business in the financial sector can continue to operate without building a loyal customer base. the presence of customers is important and necessary for the spread of banking services, thus it's crucial to have a clientele to support the delivery of services, and relying on a very small number of customers is a dangerous matter, as losing one of the bank’s customers may lead to a cash flow crisis, therefore, banks must put in great time and effort in order to gain new customers in order to be able to protect the bank from the risk of failure and develop work to increase the competitive advantage sustainable. and the objectives associated with dealing in attracting new customers and maintaining existing customers (moalla, 1994: 178) and include two objectives as follows: reaching the largest possible number of customers: this goal is related to the market share of customers in the banking sector, ie the size of the bank's customers depends on the banking audience. some banks aim to price their services to maintain or increase this percentage, and the pricing element is one of the tools to achieve this. perhaps this objective is characterized by the flexibility of the price and its ability to adapt to the competitive conditions of the bank, and the bank's temporary acceptance of minimal losses in order to increase customer market share and generate long-term profitability. (alajarma, 2005, 285). preserving the market share of the bank: some banks consider their ideal position in the market, so they try to maintain it without creating conflicts with competitors when working to achieve a kind of stability, which leads to generating a positive image among customers as a result of price stability, which is something desirable for the customer (macdonald & koch, 2006:354). target cost strategies for pricing banking services: (al-sumaidaie and youssef, 2005: 277) 1 penetration strategy in banking markets: the pricing penetration strategy through the target cost is based on pricing banking services at low prices, in order to obtain a marketing share and attract customers as a result of the low price. the implementation of this strategy requires the sacrifice of short-term profits; in order to obtain a market, share in the long term, this strategy is used when providing a new service to the market and that the objective of this strategy is to penetrate and grow in the market and obtain the largest possible share in it. 2market skimming strategy: this strategy is known as the browsing strategy for pricing through the target cost, and its idea is based on setting high prices for banking service from the beginning in order to maximize profits in the short term, as there is a category of customers who have the desire and willingness to pay the price and obtain the service, then the bank reduces the price in order to obtain other categories of customers, and respond to the market and competition. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 24 www.americanjournal.org 3price leadership strategy: this situation is embodied when there is a particular bank that is generally known by the rest of the banks as a rate commander since it is he who sets the price and then the rest of the banks follow him; the choice of the strategy that the bank follows depends on several factors, including the bank's objectives, and the assessment of the strategy that has greater chances of success. the pricing of new services is one of the most difficult problems facing the bank because of the ambiguity and uncertainty surrounding the ability of customers to accept the prices offered for these new services. it is better to study and collect information from the market before pricing in order to enlighten them when pricing services, because following the appropriate pricing policy will lead to rationalizing pricing decisions and contribute to achieving the bank’s goals, whether in the short or long term. theoretical aspect: sustainable competitive advantage first: the concept of sustainable competitive advantage: the concept of competitive advantage emerged in the mid-seventies of the last century after the concept of comparative advantage prevailed among economists and businessmen, which was the cornerstone in determining the path of international trade and areas of specialization, and through which work is evaluated for organizations and countries alike. how to convert comparative advantage into competitive advantages through the ability to produce factors of production has become the main challenge facing economists and management, which are founded on high human skill levels on the one hand and a solid scientific foundation on the other, the idea of competitive advantage has drawn significant attention in the literature of financial management, and in spite of that, this term still needs more enrichment and framing (al-sherbiny,1996: 1). the study (reed & defellipi: 1990, 90) showed that there is no completely defined and agreed upon concept or definition of competitive advantage. the reason for this is due to the novelty of the field of financial management, which made some of its concepts, including the competitive advantage, still without a fully defined definition. in addition, the dimensions and elements that the competitive advantage interacts with are numerous and varied. the most obvious concept of competitive advantage, which sees that obtaining a competitive advantage is through creating a creative offensive strategy that cannot be threatened by competitors (thompson & strickland: 2003,185). there is another concept of competitive advantage as, the capacity of the organization to outperform and stand out from rivals by building specialized competencies within the organization (mohsen and al-najjar, 2004: 52). as for the importance of competitive advantage, it stands out as a goal that all organizations seek to reach in order to achieve superiority over their competitors in the business market, the success they aspire to, and survival and growth in light of the enormous pressures and rapid changes that characterize those markets. the study (macmillan & tampo: 2000, 89) showed that the competitive advantage is an important criterion for the banking sector because successful banks are constantly creating new models for their competitive advantage, as long as the old models for them have become widely known and available and that competitors are fully aware of them. as for (awad, 2000: 135), he points out that the importance of competitive advantage stands out in determining the availability of the basic elements of success compared to competitors, which is that the bank has to adopt its strategies based on a competitive advantage that other banks do not have. it also avoids strategies whose success requires the availability of strengths that are not available in other american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 25 www.americanjournal.org banks, and thus the bank's strategies cannot succeed unless they are commensurate with its internal capabilities, what should be done is to evaluate these potentials in a realistic manner so that banks set their strategies within the limits of real potentials, because good strategies are based on realizing the strengths and weaknesses of the organization to work within its limits. the concept of sustainable competitive advantage is based on the interconnected structure, reputation, innovation, and strategic assets. sustainable competitive advantage, in fact, is a product linked to two aspects: the competitive advantage and the strategic advantage, considering that the sustainable competitive advantage is meeting the current needs of customers, taking into account the future needs of future generations (kuuml, 2011: 52). from this, it is noted that the sustainable competitive advantage is a set of characteristics that are unique to banks when providing services to customers, in the sense that they have a set of capabilities, competencies, knowledge, etc., which banks enjoy and through which they provide greater values and greater satisfaction to customers than what competitors offer. it enables banks to achieve superiority over competitors through the services they provide, thus enabling banks to achieve a sustainable competitive advantage. second: factors affecting achievement of competitive advantage: both (tracey & bakos) see that competitive advantage arises from two factors, namely (hicks jar: 1993,105): 1 relative efficiency (comparative): it refers to banks' capacity to produce banking services at a lower cost than their rivals, and this is influenced by two elements: ainternal efficiency: this term describes how much money an organization spends internally. b mutual organizational efficiency: describes the expenses that banks suffer as a result of their interactions with outside organizations and how to use global networks to reduce the costs of internal and external communications. 2 bargaining power: it is the power that allows banks to achieve bargaining situations with their customers and suppliers for private interest. this power is affected by other basic factors: a costs associated with research and development: these are the costs that refer to the cost of the bank marketing its services, suppliers, and customers at the best prices for banking services. b the unique characteristics of the service: which are the characteristics of banking services that make them different from the characteristics of competitors' services. ctransfer costs: these are the costs incurred by customers and suppliers if they refuse to deal with that bank. third: general competitive strategies: competitive advantage is based on a specific strategy to compete with the aim of achieving priority over its competitors by obtaining a competitive advantage or advantages. the strategy is defined as "those structural decisions taken by the organization to achieve precise goals that depend on the degree of achievement of the success or failure of the organization." and "m. porter" classified the strategy of sustainable competitive advantage into three categories. 1 cost leadership strategy: sustainable competitive advantage (khalil, 115: 2005) aims to achieve a lower cost compared to competitors while maintaining the type of product. this is achieved american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 26 www.americanjournal.org through optimal investment of resources, production with ideal standards, use of alternatives to raw materials, and benefiting from economies of scale. (mohsen, and al-najjar, 2004: 53) indicates that cost leadership, which is also called (low cost strategy), achieves the competitive advantage of the bank when this organization makes itself the low cost commander in the business that the organization adopts, which generally produces high quantities of standard services (in the mature stage of the product life cycle), it is also allowed to provide its services at cheaper prices than competing banks that produce the same services, but perhaps newer and in smaller quantities. we can understand from the foregoing that this strategy achieves competitive advantage by producing standard services in large quantities that are offered at low prices compared to competitors' prices by controlling fixed costs and selling costs (i.e. reducing the unit cost of service) while not neglecting the quality factors and services provided. 2 discrimination strategy: in this strategy (al-obaidi, 2005: 95), the organization tries to distinguish its services from competitors in the banking industry. the organization may use advertising or the features and characteristics of the exceptional service or the new technology to achieve the intended service as distinguished, and this strategy focuses on customers who are not interested in the price in particular, so it can be very profitable and the distinction can depend on the service itself through marketing and other factors. it also shows that this strategy achieves a sustainable competitive advantage by establishing concepts related to the consumer that allows him to obtain a unique service, and that distinguished banks are able to satisfy the needs of the consumer and attract him in order to increase the volume of service provision and then protect the bank from its competitors, and here discrimination makes the organization impose prices that you see fit and develop consumer loyalty. it is more clear that there are two ways to achieve differentiation, namely: the bank's attempt to reduce the degree of risk and the cost incurred by the consumer when obtaining the service. and the bank's attempt to find unique advantages in the performance of the service over those that exist in the services of competitors in a clear and specific manner. discrimination formulas can take many forms, including evaluation, quality, technology, customer services, a network of distributors, and the image of the type of service in the minds of the consumer. 3focus strategy (market segmentation): it is an integrated set of actions designed to provide services that meet the needs of a specific competitive part, and that the basis of the focus strategy is that the bank can serve a specific part of the market in a successful or efficient manner, more capable than other competitors (hitt & others: 2001,168). the application of these strategies is mediated by two alternatives, the first includes paying attention to the cost center, that is, working to achieve (cost advantage), and the second is paying attention to the center of discrimination, that is, searching for discrimination within the targeted banking sector. it is clear to us from this that the focus strategy specializes in a specific service or a specific market, so sustainable competitive advantage is achieved by focusing either on reducing the cost of the product (services) or focusing on discrimination in one or more elements of competition. if the competitive advantage is achieved, the feature of continuity, if the institution can maintain the lowest cost advantage or differentiate the product in the face of competing institutions. in general, the greater the competitive advantage, the greater the efforts required by competing banks to overcome it or to determine its impact (al-arabi, 2005: 440). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 27 www.americanjournal.org fourth: competitive dimensions all banks seek to achieve economic value in order to be distinguished. this is done according to multiple dimensions that they choose based on the nature and size of their activity and the changing and targeted desires of their customers. he explained (al-obaidi, 2005: 51) that the key to developing strategies for effective competitive operations refers to understanding how to create added value for customers, especially the value that is added through competitive priorities or the priorities that are chosen to support the adopted strategy. he explained that in the past, the focus was on low cost, and with the passage of time high quality was added to it, then flexibility became an important dimension and a result of the dynamism of global markets. most writers and researchers have agreed on several dimensions to achieve competitive superiority that the organization chooses and focuses on in providing its products (goods or services) to meet the desires of customers through one or more of these dimensions: 1 cost: cost was defined (krajewski & ritzaman, 1999:33) as resources sacrificed for a specific goal of the organization in order to achieve sustainable competitive advantage and that providing services at low prices can increase the demand for services, i.e. increasing the share of the bank in the banking sector. it also reduces profit margins if it is not possible to provide the service at a lower cost, and competition on the basis of cost entails interest in reducing work costs and other costs, which aims to reduce the cost per unit of service. it was defined, (al-taweel and al-hafiz, 12: 2002) cost as a group of cash income that the bank uses to obtain the factors of production necessary to achieve the goals it wants to reach. that is, banks (evans & collier, 1997: 124) can lower their expenses by effectively using the production capacity for the service at their disposal, as well as the ongoing enhancement of service quality, innovation in service design, and process technology, as these are crucial building blocks for cost reduction and help managers support and credit the company's aim to be a leader in the field of cost. 2 quality: the term quality was used to express different points of view (al-taweel and alhafiz, 2002: 18), the value of the product's service, the degree to which it fulfills its intended purpose, and the price the customer is ready to pay are all factors that influence how the customer perceives the product. in contrast, the product's vision focuses on providing services that meet the requirements set down for them in terms of quality. it implemented intensive training programs for its employees, promoting innovation and allowing them to take independent decisions. on the other hand, the organization offers the knowledge and skills required by the staff to improve their performance, as quality is the objective of every manager and a factor that greatly affects how well banks operate and, consequently, how competitively they are positioned. quality is one of the important competitive advantages, which refers to (krajewsky & ritzman, 1999:36) doing things correctly to provide services that are in line with the needs of customers. customers want quality services that include the features they need. people are the qualities they expect from banks or see in their advertisements, and banks that do not provide high-quality services that meet customers' requirements, desires, and expectations cannot survive and thrive in the competitive financial markets. flexibility: it was dealt with (evans, 1997:87), emphasizing the use of flexibility and diversification by many banks, and flexibility means the ability of the production system to adapt to successful american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 28 www.americanjournal.org changes and environmental developments for the purposes of facing changes in customer demands, as well as the use of new technologies in order to obtain a competitive advantage in specific financial markets. and (al-ali, 2006: 39) confirms that flexibility has become an effective weapon in competition between business organizations, as it includes the ability to provide a wide variety of new services on an ongoing basis, as well as the speed in developing existing services, in addition to responding in general to the needs and desires of the customer. flexibility is considered the basis (dilworth, 1996:57) to achieve sustainable competitive advantage for banks through rapid response that occurs in service design, as this generally reflects the ability (ability) to adapt to a wide range of potential environments. 3 delivery: in light of the increasing importance of time for the customer, this dimension has become a competitive dimension and a form of organization differentiation, which is the customer response time, which is the time taken for the commodity until its delivery or service until its performance (hill & jones, 2001:132). and (kotler, 2000:222) defined delivery as the best way to deliver the service to the customer and includes speed and accuracy in the delivery process. as for (mohsen and al-najjar, 2004: 35), they indicated the ability of operations management in organizations to meet the requirements of providing service to consumers. the efficiency of processing is measured by the degree of adherence to the established delivery dates. 4 creativity: the creativity process requires cooperation between a number of overlapping operations in the bank in order to use and adopt new ideas and technical developments by adopting scientific methods for the purpose of providing a new banking service for the bank, in order to design a new service production process, or to improve it for the purpose of achieving the bank’s goals of survival and growth and making it more capable on competition (al-taweel and ismail, 83:2008), creativity is considered one of the important matters for all institutions that face a changing and complex environment. it has become necessary to focus on it and it has become at the forefront of the goals that many banks seek to develop and provide services with a sustainable competitive advantage. the importance of creativity has increased in light of the increasing strength of competition between organizations in different sectors and to avoid the risk of disappearance (qandil, 2010: 43). the practical side: (statistical analysis and hypothesis testing) this chapter reviews the results of the statistical analysis of the response of the study sample to the variables in which it was adopted by presenting their answers represented in the arithmetic means and standard deviations for all the study variables. the chapter also deals with testing the study hypotheses for each of them. first: analyzing the study data 1 the dimensions of the independent variable, the target cost: to describe and analyze the dimensions of the target cost represented in pricing banking services, profitability, attracting new customers and maintaining existing customers, the researcher resorted to using arithmetic means and standard deviations to verify the significance of the paragraphs and the importance of each paragraph, as shown in tables no. (1), (2), (3), pertaining to all sub-variables of the independent variable, the target cost, and the following tables show the order of the study paragraphs according to their importance from the point of view of customers dealing in financial operations in banks, as follows: american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 29 www.americanjournal.org a the answers of the study sample to the paragraphs of the study tool related to the banking services pricing variable: table no. (1) the mathematical mean and standard deviation of the pricing variable for banking services service pricing variable paragraphs arithmetic average standard deviation significance level 1 applying the target costing approach makes the bank competitive in the services it provides. 3.81 0.880 elevated 2 pricing through target costing requires that pricing decisions be taken into account. 3.93 0.901 elevated 3 target cost pricing for banking services gives more flexibility when using competitive advantage. 3.97 0.873 elevated 4 the target cost approach to pricing helps the bank get a competitive edge in the price of the services it offers by excluding cost components that do not give the client an advantage or benefit. 3.86 0.908 elevated 5 the target cost method to pricing financial services is more equitable than the actual cost approach. 4.11 0.908 elevated 6 banking services priced according to the target cost approach are affected by competitors. 4.15 0.782 elevated 7 the process of pricing banking services according to the target cost approach is influenced by competitors. 4.00 0.871 elevated 8 to build a target cost approach in pricing banking services that generates incentives to improve the quality of those services to increase competition. 3.73 1.087 elevated 9 following the target cost approach makes the bank's management interested in developing its performance and improving its services. 3.92 0.778 elevated 10 banking services in a bank are priced on a cost basis rather than supply and demand. 3.71 0.897 elevated total 3.91 0.586 source: using the statistical program (spss) and (excel). table no. (1) indicates the respondents' answers to the paragraphs related to the sub-variable, which is the pricing of banking services. the arithmetic means for this variable ranged between (3.71 4.15), with a total average of (3.91), which indicates a high level of responses of the study sample to the sections of the questionnaire on the pricing of banking services, in the first place came the paragraph “banking services priced according to the target cost entrance are affected by competitors” with an arithmetic mean of (4.15), higher than the overall arithmetic mean of (3.91), the overall standard deviation being (0.586), regarding the section on "pricing policies for banking services," it is focused on the cost approach rather than supply and demand. it ranked last with an arithmetic mean of (3.71), which is lower than the total arithmetic mean of (3.91) and with a total standard deviation (0.586). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 30 www.americanjournal.org b the answers of the study sample to the paragraphs of the study tool related to the profitability variable table no. (2) calculating the profitability variable's mathematical mean and standard deviation profitability variable paragraphs arithmetic average standard deviation significance level 1 a bank can increase its market share by pricing banking services using the target costing approach. 4.04 0.637 elevated 2 the bank's reputation is enhanced and sales are subsequently increased by using the target cost strategy when pricing banking services. 4.11 0.879 elevated 3 in order to meet consumer needs and increase revenues, the target cost strategy necessitates constant development. 4.07 0.762 elevated 4 the target cost approach achieves the profit margin that the bank's management aspires to. 3.56 1.072 average 5 adopting a target costing approach leads to cost reduction and thus increased profitability. 3.50 0.954 average total 3.87 0.862 elevated source: using the statistical program (spss) and (excel). table no. (2) shows the responses of the respondents to the paragraphs of the main study tool (questionnaire) related to the paragraphs of the sub-independent variable, which is profitability, where the arithmetic means for this variable ranged between (3.50 4.11) according to the study sample's thoughts, the product variable is rated highly, with a total average of (3.87) on the likert scale, as the paragraph “the bank's reputation is enhanced and sales are subsequently increased by using the target cost strategy when pricing banking services” having a mathematical mean of (4.11), it exceeds the overall arithmetic mean of (3.87) and a standard deviation of (0.862), while the paragraph “the adoption of the target cost approach leads to cost reduction and thus increased profitability" ranked last with an arithmetic mean (3.50), which is lower than the total arithmetic mean (3.87) and a standard deviation (0.862). c the answers of the study sample to the paragraphs of the study tool related to the variable of attracting new customers and maintaining existing customers: table no. (3) the variable's arithmetic mean and standard deviation for acquiring new customers and retaining existing customers variable paragraphs to attract new customers and retain existing customers arithmetic average standard deviation significance level 1 the target cost approach's requirement for continuous improvement in banking services helps the bank draw in new clients and keep existing ones. 4.07 0.962 elevated 2 the bank is able to retain its current client base while attracting new ones by using the target cost approach to pricing. 3.65 11.23 average 3 the bank strives to maintain the quality of the services it provides and, as a result, maintains its existing customers by using the target costing approach. 3.98 0.908 elevated 4 when pricing banking services, the bank gains credibility by using the target cost approach. 3.33 1.063 average 5 at the entrance to the target cost, the bank's management makes it work to achieve the desires and needs of customers. 3.77 1.001 elevated 6 the benefits accruing from the application of the target cost approach are a reason for the bank to maintain and attract customers. 3.87 0.974 elevated total 3.79 1.024 elevated source: using the statistical program (spss) and (excel). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 31 www.americanjournal.org table no. (3) indicates the respondents' answers to the statements related to distribution, as the arithmetic means for this variable ranged between (3.33 4.07), with a total average of (3.79) on a likert scale, the study sample's responses to the questionnaire questions about luring new customers and retaining existing ones fell between the high and average ranges, as the first place came in the paragraph, “the target cost approach's requirement for continuous improvement in banking services helps the bank draw in new clients and keep existing ones” the arithmetic average (4.07) is higher than the overall arithmetic mean (3.79), and a standard deviation of (0.024), while within the paragraph “when pricing banking services, the bank gains credibility by using the target cost approach”, it ranked last with an arithmetic average (3.33), which is lower than the overall arithmetic mean of (3.79), with a standard deviation of (0.024). 2 dimensions of the dependent variable related to sustainable competitive advantage: to describe and analyze the dimensions of the dependent variable, which is the competitive advantage (cost, quality, creativity, flexibility, time), the significance of each paragraph, as well as the arithmetic mean and standard deviation, were employed. as shown in table (4) related to the sub-variable, which is cost, and table no. (5) related to the quality variable, as well as table no. (6) related to the creativity variable, table no. (7) related to flexibility, and table no. (8) related to the time variable, the following tables also show the order of the study paragraphs according to their importance from the point of view of customers dealing with dealers with banks. the tables will also show the level of importance for each paragraph according to the study sample's viewpoint, as follows: a the answers of the study sample to the paragraphs of the study tool related to the cost variable table no. (4) the cost variable's mathematical mean and standard deviations cost variable paragraphs arithmetic average standard deviation significance level 1 the bank has services that have lower costs than the competitors. 3.47 0.939 average 2 the bank seeks to reduce the costs of services. 3.90 0.834 elevated 3 reaching the volume of production of services in proportion to the cost. 3.81 0.890 average 4 the bank uses research and development policies to reduce costs. 3.49 1.188 elevated 5 the bank's employees have extensive experience in banking operations. 3.74 0.974 elevated 6 censorship of operations leads to lower costs. 3.55 1.004 average 7 the bank has the ability to control costs when serving specific customers. 3.52 0.923 average total 3.65 0.629 average source: using the statistical program (spss) and (excel). table (4) indicates the respondents' answers to the statements related to the cost variable, as the arithmetic averages for this variable ranged between (3.47 3.90), the study sample's high and medium levels are shown by its overall average on the likert scale, which is (3.65). responses to the american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 32 www.americanjournal.org questionnaire items related to the cost variable, in the first place came a paragraph, “the bank seeks to reduce the costs of services” the arithmetic mean (3.90) is greater than the general arithmetic mean (3.65), with a standard deviation of (0.629), while the paragraph “the bank has services with lower costs than competitors” ranked last with an arithmetic mean of (3.47), which is lower than the total arithmetic mean of (3.65) and with a standard deviation of (0.629). bthe answers of the study sample to the paragraphs of the study tool related to the quality variable table no. (5) arithmetic means and standard deviations for the quality variable paragraphs of the quality variable arithmetic average standard deviation significance level 1 the bank has the quality that enables it to obtain a suitable market share. 3.98 0.842 elevated 2 the bank seeks to match the quality of services with the expectations of customers. 3.96 0.838 elevated 3 the bank improves the quality of services through customer complaints. 4.00 0.951 elevated 4 the bank maintains the quality of its services through appropriate handling means. 3.71 1.022 elevated 5 the bank has a clear policy for providing services. 3.55 0.310 average 6 the employees in the bank have a culture around quality. 3.35 1.170 average 7 the bank adheres to international standards of banking quality. 3.90 0.984 elevated total 3.79 0.745 elevated source: using the statistical program (spss) and (excel). table (5) indicates the respondents' answers to the statements related to the quality variable, as the arithmetic means for this variable ranged between (3.35 4.00), with a total mean of (3.79) on a likert scale, the study sample responded to the questionnaire questions connected to the quality characteristic at a high and medium level, the paragraph “the bank develops the quality of services through customer complaints” ranked first, the arithmetic mean (4.00), greater than the general arithmetic mean (3.79), and the standard deviation (0.745). while the paragraph "employees in the bank have a culture of quality" ranked last with an arithmetic mean of (3.35), which is lower than the total arithmetic mean of (3.79) and with a standard deviation of (0.745). cthe answers of the study sample to the paragraphs of the study tool related to the creativity variable: table no. (6) the creativity variable's arithmetic mean and standard deviations paragraphs of the creativity variable arithmetic average standard deviation significance level 1 the bank gets its innovations in providing services through new ideas. 3.34 1.111 average 2 the bank's use of new ways to produce services. 3.50 1.034 average 3 new ideas in the bank led to the development of banking operations. 3.48 1.068 average 4 the bank has a research and development department. 2.71 1.333 average 5 the bank applies creative methods in promoting the provision of services. 3.15 1.108 average total 3.25 0.923 average source: using the statistical program (spss) and (excel). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 33 www.americanjournal.org table (6) indicates the respondents' answers to the statements related to the creativity variable, as the arithmetic means for this variable ranged between (2.71 3.50), having a total average of (3.25) on a likert scale, the study sample's average level is indicated responses to the questionnaire items related to the creativity variable, the paragraph "the bank's use of new ways to produce services" ranked first, with an arithmetic average of (3.50), this is greater than the general arithmetic mean (3.25), with a standard deviation of (0.923), while the paragraph "the bank has a research and development department" was ranked first ranked last with an arithmetic mean of (2.71), which is lower than the total arithmetic mean of (3.25) and with a standard deviation of (0.923). d the answers of the study sample to the paragraphs of the study tool related to the flexibility variable: table no. (7) the flexibility variable's arithmetic mean and standard deviations flexibility variable paragraphs arithmetic average standard deviation significance level 1 the bank offers a variety of services according to the wishes of customers. 3.93 0.845 elevated 2 the bank offers on services continuously. 3.52 1.114 average 3 the bank adopts modern means and methods for production, pricing and promotion of its services. 3.33 1.129 average 4 the bank provides services according to the required quantities. 3.83 1.004 elevated 5 the bank has capabilities to enter new financial markets. 3.75 0.893 elevated 6 the bank buys automated teller machines and multi-use devices. 3.76 1.098 elevated 7 the bank has the ability to respond to changes in the surrounding environment. 3.71 0.928 elevated total 3.70 0.701 elevated source: using the statistical program (spss) and (excel). table (7) indicates the responses of the respondents to the statements related to the flexibility variable, as the arithmetic averages for this variable ranged between (3.33 3.93), with an overall average of (3.70) on the likert scale, the study sample's high and medium levels are shown by this data responses to the questionnaire items related to the flexibility variable, in the first place came the paragraph “the bank provides various services according to the desires of customers” with an arithmetic mean (3.93), which is greater than the general arithmetic mean (3.70), and a standard deviation of (0.701), while the paragraph “the bank adopts modern means and methods of production, pricing and promotion for his services" ranked last with an arithmetic mean of (3.33), which is lower than the total arithmetic mean of (3.70) and with a standard deviation of (0.701). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 34 www.americanjournal.org e the answers of the study sample to the paragraphs of the study tool related to the time variable: table no. (8) the time variable's arithmetic mean and standard deviations paragraphs of the time variable arithmetic average standard deviation significance level 1 providing services at the specified time agreed upon with customers. 3.86 0.923 elevated 2 agile response by the bank to its customers. 3.39 1.185 average 3 the bank provides integrated information to customers in a timely manner. 3.59 1.154 average 4 the bank has a system that enables it to reduce the time between service request and delivery. 3.26 1.111 average 5 the bank has programs to rapidly develop its services. 3.23 1.173 average total 3.48 1.002 average source: using the statistical program (spss) and (excel). table (8) indicates the respondents’ answers to the statements related to the time variable, as the arithmetic averages for this variable ranged between (3.23 3.86), with a total average of (3.48) on the likert scale, the study sample's high and medium levels are shown by this data responses to the questionnaire items related to the time variable, as the paragraph “providing services at the specified time agreed upon with customers” ranked first, with an arithmetic mean of (3.86), which is greater than the general arithmetic mean of (3.48) and a standard deviation of (1.002), while the paragraph “the bank has programs to develop its services quickly" ranked last with an arithmetic mean of (3.23), which is lower than the total arithmetic mean of (3.48) and with a standard deviation of (1.002). second: testing the study hypotheses the main hypothesis: (h01) there is no effect of target cost exclusion (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the competitive advantage in commercial banks in iraq at the level of statistical significance α ≤ 0.05. multiple regression analysis was utilized to test this hypothesis since these hypotheses examine the impact of a number of independent variables on a single dependent variable. the results of testing this hypothesis appeared in the following table: table no. (9) testing the first main hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.41 competitive advantage 2.369 0.000 14.608 0.663 0.440 profitability 0.66 attracting new customers and maintaining existing customers 0.46 source: using the statistical program (spss) and (excel). through table no. (9) it was found that there is an effect of the independent variable with its dimensions combined on the dependent variable with all its dimensions, as the calculated f values american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 35 www.americanjournal.org were high, and the value of the correlation coefficient r was 0.663, and the value of the determination coefficient r2 was 0.440, and this explains the effect value of the elements variable target cost on sustainable competitive advantage. from the main hypothesis, several sub-hypotheses emerge, as follows: sub-hypothesis number one: (h01.1) the target cost dimensions shown by have no impact on (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the cost variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. table no. (10) results of testing the first sub-hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.47 cost 3.822 0.000 25.204 0.393 0.154 profitability 0.66 attracting new customers and maintaining existing customers 0.97 source: using the statistical program (spss) and (excel). with reference to the results of table no. (10), which includes the results of testing the first subhypothesis, and with reference to the results of the first sub-hypothesis, we find that the calculated (t) value (3.822) is higher than its tabular value at the level of significance (0.05) equal to (1.96). the value of the observed significance level, the p-value, is equal to (0.000), which is greater than the approved significant value, which entails rejecting the null hypothesis, which states that the target cost elements have no statistically significant impact on the cost variable, and accepting the alternative hypothesis, which states that the cost dimension has a statistically significant impact on the sustained competitive advantage in commercial banks in iraq. the second sub-hypothesis: (h01.2) there is no effect of the target cost dimension represented by (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the variable of quality in commercial banks in iraq at the level of statistical significance α ≤ 0.05. table no. (11) results of testing the second sub-hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.57 quality 5.020 0.000 25.204 0.393 0.154 profitability 0.98 attracting new customers and maintaining existing customers 0.47 source: using the statistical program (spss) and (excel). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 36 www.americanjournal.org with reference to the results of table no. (11), which includes the results of testing the second hypothesis, and with reference to the results of the second sub-hypothesis, we find that the calculated (t) value (5.020) is higher than its tabular value at the significance level (0.05) and equal to (1.96), and that the value of the significance level the viewer's p-value is equal to (0.000), which is greater than the approved significance value, it entails disproving the null hypothesis, which claims that lowering the target cost has no statistically significant impact on quality, additionally, if the alternative hypothesis is correct, and the quality dimension has a statistically significant impact on the sustainable competitive advantage in commercial banks in iraq. the third sub-hypothesis: (h01.3) the target cost has no bearing dimension represented by (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the creativity variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. table no. (12) results of testing the third sub-hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.84 creativity 0.406 0.000 108.291 0.663 0.440 profitability 0.64 attracting new customers and maintaining existing customers 0.41 source: using the statistical program (spss) and (excel). referring to the results of table no. (12), which includes the results of testing the third hypothesis, and referring to the results of the third sub-hypothesis, we find that the calculated (t) value (10.406) is higher than its tabular value at the significance level (0.05) and equal to (1.96), and that the value of the significance level the viewer's p-value is equal to (0.000), which is greater than the approved significance value, reject the null hypothesis, which states that target cost factors have no statistically significant effect on creativity, and accept the alternative hypothesis that shows a statistically significant relationship between the creativity component and sustainable competitive advantage in commercial banks in iraq. the fourth sub-hypothesis: (h01.4) the target cost has no bearing dimensions represented by (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the variable of flexibility in commercial banks in iraq at the level of statistical significance α ≤ 0.05. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 37 www.americanjournal.org table no. (13) the results of testing the fourth sub-hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.54 flexibility 7.275 0.000 52.925 0.526 0.277 profitability 0.44 attracting new customers and maintaining existing customers 0.19 source: using the statistical program (spss) and (excel). with reference to the results of table no. (13), which includes the results of testing the fourth hypothesis, and with reference to the results of the fourth sub-hypothesis, we find that the calculated (t) value (7.275) is higher than its tabular value at the significance level (0.05) and equal to (1.96), and that the value of the significance level the viewer's p-value is equal to (0.000), which is greater than the approved significance value, this entails rejecting the null hypothesis, according to which there is no statistically significant effect of the target cost's components on the flexibility variable, and accepting the alternative hypothesis, according to which the flexibility dimension has a statistically significant impact on the sustainable competitive advantage in commercial banks in iraq. the fifth sub-hypothesis: (h01.5) the target cost has no bearing dimensions represented by (pricing of banking services, profitability of banks, attracting new customers and maintaining existing customers) on the time variable in commercial banks in iraq at the level of statistical significance α ≤ 0.05. table no. (14) the results of testing the fifth sub-hypothesis: independent variables β dependent variable t p-value calculated value (f) correlation coefficient (r) coefficient of determination (r2) pricing of banking services 0.78 time 4.561 0.000 18.257 0.358 0.128 profitability 0.48 attracting new customers and maintaining existing customers 0.84 source: using the statistical program (spss) and (excel). with reference to the results of table no. (14), which includes the results of testing the fifth hypothesis, and with reference to the results of the fifth sub-hypothesis, we find that the calculated (t) value (4.561) is higher than its tabular value at the significance level (0.05) and equal to (1.96), and that the value of the significance level the viewer's p-value is equal to (0.000), which is greater than the american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 38 www.americanjournal.org approved significance value, which entails rejecting the null hypothesis, which states that the target cost components have no statistically significant impact on the time variable, and accepting the alternative hypothesis, which states that the time dimension has a statistically significant impact on the sustained competitive advantage in commercial banks in iraq. conclusions and recommendations: first: conclusions: 1 commercial banks operating in iraq have the possibility of using the target cost approach for pricing banking services, provided that banks take the view that customers are the most important component of the banking services market in order to obtain a sustainable competitive advantage. 2 implementing a target costing approach helps reduce costs by eliminating activities that do not add value, working to provide good services and following an accurate pricing policy according to the purchasing power of customers and according to the customer's desire, and getting rid of aspects of extravagance. 3the level of profitability attained by utilizing the target cost approach, due to its continuous improvement of services to meet the needs of customers in banks, pricing in accordance with that strategy boosts the bank's market share and the pace of service delivery, which in turn creates profits and realizes sustainable competitive advantage. reducing expenses and reaching the profit margin that management strives for. 4when using the target cost strategy, banks are aware of the quality of service and price efficiency, which results in ongoing development of their financial services, creating a competitive advantage, since pricing based on the target cost method is more equitable from the perspective of banking management than pricing based on the actual cost approach, it also provides more flexibility in how the pricing policy for those services is applied. 5the level of relative importance of all cost paragraphs is average according to the opinions of the respondents of the study sample. it is noted from this that this importance was medium due to many factors related to not relying on the experience curve, weak control systems, and failure to provide services as desired by the customer, as well as due to the inability of banks to provide services banking at a low price and less than competitors, according to the opinions of the study sample. 6the study's sample of respondents' opinions revealed that the importance of the quality variable was high since banks were interested in it, represented by decision makers, in this element, as it is possible that there is a good market percentage in providing services and suitable for the bank in the event of applying quality standards. 7the creativity dimension got medium importance according to the opinions of the study sample, and the reason for this is due to the lack of interest of banks in research and development, in addition to the lack of application of creative methods in many areas, especially in the promotional field. 8the results of the descriptive statistics found that the flexibility dimension has obtained a high arithmetic average and a high relative importance, and the reason for that is the methods used in the process of providing services and according to the required quantities and based on the needs and desires of customers. 9the relative importance of the time dimension got an average estimate, and the reason is due to the slow process of development and continuous improvement of some banking services, which american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 39 www.americanjournal.org creates a waste of time, and this wasted time carries additional burdens on the factories, including those related to the cost. second: recommendations 1commercial banks operating in iraq have the possibility of applying the target cost approach, therefore, it is advised to make a strong effort to advance toward its implementation in banks due to the advantages, benefits, and competitiveness it achieves as well as its impact on achieving efficiency and effectiveness in banks. 2attempt to replace the conventional approach to service pricing with one that takes into account target costs, as this brings benefits to banks and increases their ability to compete in financial markets. 3educating and training the relevant authorities and bank staff about the benefits of the target cost strategy and how it can increase the effectiveness of pricing banking services, lowering expenses, increasing efficiency in providing services, and achieving the desire and interest of customers. 4the need to organize operations and develop programs and plans capable of reducing the costs of providing services within banks. 5supporting quality programs that develop and increase the attractiveness of commodities offered by banks. 6addressing the weakness, which is represented by the lack of innovative methods applied or used by banks in many aspects. 7addressing problems related to the most important element of work, which is time, through organization and developing tools that make banks able to adhere to the deadlines for providing services to customers. references 1. abu awad, muhammad rajeh khalil, the importance of using the target cost approach in improving the efficiency of pricing banking services, master thesis, middle east university for graduate studies, 2008. 2. al-ajarmah, tayseer, banking marketing, jordan: amman, dar al-hamid for publishing and distribution, 2005. 3. al-ali, abdul sattar muhammad, “modern management of warehouses and purchasing”, first edition, wael for printing and publishing, amman, jordan, (2006). 4. al-arabi attia, “cost reduction as a strategic tool to face competition,” international scientific conference on the outstanding performance of organizations and governments, university of ouargla, algeria, (2005). 5. al-azzawi, shefaa muhammad ali hassoun, “measuring the relationship of functional work design with the creativity of managers in the general company for batteries industry”, journal of economic and administrative sciences, university of baghdad, college of administration and economics, volume 9, issue 29, (2002). 6. al-khalaf, nidal muhammad reda, zwelf, inam mohsen hassan, pricing using the target cost approach: a field study in the jordanian veterinary medicine industry, refereed research, king abdulaziz university journal of economics and administration, volume 81, number 1, 2007. 7. al-obeidi, bashar muhammad khalil, “technical creativity and its impact on achieving competitive advantage,” an analytical study of the opinions of a number of managers of industrial american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 40 www.americanjournal.org organizations, a master’s thesis in business administration submitted to the college of administration and economics, al-mustansiriya university, (published within the research of ps university accounting forums 2005). 8. al-sumaidaei, mahmoud jassim muhammad and youssef, rudeina othman, banking marketing: an analytical, quantitative strategic approach, jordan: amman, dar al-manhaj for publishing and distribution, 2005. 9. al-taweel, akram ahmed and al-hafiz, ali abdel-sattar, “the impact of product design on competitive priorities,” a prospective study of the opinions of a sample of managers of joint-stock industrial companies, nineveh governorate, tanmiat al-rafidain journal, university of mosul, college of administration and economics, volume 2/24, no. 69, (2002). 10. al-taweel, akram ahmed, and ismail, ragheed ibrahim. the relationship between the types of technical innovation and the dimensions of competitive advantage, a field study in a selected group of industrial companies in nineveh governorate, university of mosul, college of administration and economics 2008. 11. awad, muhammad ahmed, “strategic management, fundamentals and scientific foundations”, university house for printing, publishing and distribution, mosul, iraq, (2000). 12. charles, gareth. strategic management, arabization of rifai muhammad rifai, dar al-marikh, riyadh, 2001, 150. 13. damour, hani hamed, marketing services, fifth edition, jordan: amman, dar wael for publishing and distribution, 2009. 14. el-sherbiny, abdel aziz, “where is the arab administration from the competitive advantage?” management news, quarterly bulletin issued by the arab organization for management development, no. 16, september, cairo (1996). 15. garrison, ray h. & noreen, eric w. and brewer, peter c, managerial accounting, 11th edition, boston: mcgraw-hill, 2006. 16. hicks, jr., "management information systems", third edition, west publishing co., (1993). 17. hilton, r.w,2002, managerial accounting creating value in a dynamic business enviroment,5th ed, new yark, mcgraw-hill companies, pp:670-671. 18. horngren ،et al, cost accounting: a managerial emphasis, th 12 ed ،prentice hall 2006, pp.680, pp425. 19. khalil, saadeh, “the science of creativity, the science of the twenty-first century,” the civilian dialogue magazine, issue 1272, june, riyadh, saudi arabia, (2005). 20. krajewski, lee j. & ritzman, larry p." operations management strategy & analysis" 3rd. ed. new york: addisonwesley publishing co. (1999). 21. kuuml, a. (2011). the value of environmental management and green product design within sustainable development and competitive strategies of the companies: an examination of the energy industry. african journal of agricultural research, 6(1), 52. 22. m. porter, l’avantage concurrently des nations. inter-editions, 1993, p48. 23. macdonald scottott s. and koch, timothy w., management of banking, 6th edition. thomson, 2006. 24. macmillan hugh & tamoe, mahen, "strategic management", process, content, and implementation, oxford university press., inc., 2000. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 41 www.americanjournal.org 25. mohsen, abd al-karim and al-najjar, sabah majeed, “production and operations management”, first edition, dar wael for printing and publishing, amman, jordan, (2004). 26. mualla, naji, the fundamentals of banking marketing, institute of banking studies, amman, 1994. 27. qandil, alaa. administrative leadership and innovation management, first edition, amman, dar al-fikr 2010. 28. read, r.& defellip, r.j.; causal ambiguity barriers to imitation and sustainable competitive advantage, academy & management review vo,15 no, (1990). 29. thompson, a.a.& strickland a.j", strategic management concepts and cases", 13th ed., m.c. grow-hill co., (2003). american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 250 www.americanjournal.org ways of attracting foreign investments and using them effectively sotimov yunusbek turg’unboy o’g’li tashkent financial institute department of valuation and investment a b s t r a c k e y w o r d s the article examines the processes associated with attracting foreign investments to the national economy and improving the ways of their effective use. the impact of factors on the efficiency of the country's investment activities affecting the processes of attracting and using foreign investment has been evaluated. the existing shortcomings have been identified within the framework of ways to attract and effectively use foreign investment. scientific proposals and practical recommendations on improving the system of attracting foreign investments to the national economy have been formed. investment activity, investment potential, investment attractiveness, competitive advantage, investment efficiency, investment risk, market mechanism. introduction in the address of the president of the republic of uzbekistan sh.m. mirziyoev to the oliy majlis: "world experience shows that any country that has pursued an active investment policy has achieved stable growth of its economy. that is why investment is the driver of the economy, in uzbek terms, the heart of the economy, it is no exaggeration. we will achieve rapid development of our economy only by actively attracting investments and launching new production facilities. positive results in the economy make it possible to systematically solve the accumulated problems in the social sphere. we must all understand this deeply and organize our work on this basis. in order to widely attract foreign investments, it is necessary to take measures to fully demonstrate the investment potential of our country, which should be one of the most urgent issues in our daily life" [1], and acknowledges the extremely important importance of foreign investments in the development of the economy and the urgency of its attraction. a number of measures aimed at increasing the investment attractiveness of our country's economy and improving the system of effective use of the existing investment potential are specified in the resolution of the president of the republic of uzbekistan dated april 29, 2019 "on measures to further improve the mechanisms of attracting foreign direct investment to the economy of the republic" no. pq-4300 attention was paid, and in this regard, priority was given to tasks related to increasing the efficiency of attracting foreign direct investment to the republic's economy, informing foreign investors about the opportunities and potential of our country [2]. based on the above, it is evidence that in the formation of ways of attracting foreign investments to the national economy and their effective use, the implementation of research aimed at ensuring the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 251 www.americanjournal.org compatibility of state and market mechanisms in achieving priority in regional competitive advantages of investment potential, level of investment risk, and attracting investments is of urgent importance. review of literature on the subject a number of research studies within the framework of attracting foreign investments to the national economy and forming ways of their effective use are of particular importance in the scientific research of foreign economists c.liesbeth, m.miet, s.jo. according to researchers, the process of economic liberalization in transition countries is an important factor in improving the system of attracting foreign direct investments. attracting technologies and knowledge to national enterprises through direct capital accumulation and technological know-how ensures sustainable rates of economic growth [3]. in the studies of p. mihaela, a. vaqar, h. helian, the institutional mechanism of attracting foreign investments to the national economy is studied. according to the results of the research, it is noted that the institutional quality changes in the country's economy have a positive effect on the system of attracting foreign direct investments [4]. v.d. andrianov's scientific studies have studied the theoretical basis of the investment potential of the national economy, the concepts within the framework of the investment potential have been theoretically summarized, and the feasibility of using the system of financial privileges to increase it has been emphasized [5]. research methodology. the available scientific researches on ways of attracting foreign investments to the economy of uzbekistan and their effective use, studying the experience of foreign countries, comparing and analyzing statistical and economic data, logical thinking, scientific abstraction, information grouping, analysis and synthesis, induction and deduction methods are widely used. the economy's demand for investment, the lack of investment funds, requires the effective use of investment resources. in the management and evaluation of investment projects, the financial and economic analysis of the country proposing this project is a necessary component. in order to develop the investment activities of the national economy and improve their financing, it is necessary to study and improve the financing experiences of foreign countries with developed economies and to pay special attention to the issues of using positive achievements in their practice. based on the above, the financial issues related to the investment environment and the problems of financing investment activities are being solved in a systematic manner in order to increase the effectiveness of investment utilization in the economy of our country. in fact, in recent years, the scope of measures aimed at increasing the volume of investments has been significantly increased, both legally and practically. especially as a result of active investment policy, positive growth in the dynamics of investment flow is observed in our republic (fig. 1). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 252 www.americanjournal.org figure 1. the volume of capital investments in the republic of uzbekistan in 2016-2020, billion soums [6] as can be seen from the given data, the amount of capitalized investments is increasing sharply. in 2020, it can be seen that the volume of investments in our republic has increased 4 times compared to 2016, even in the conditions of the global economic decline and crisis due to the coronavirus pandemic. in the growth dynamics of investments, the growth rate of 3 percent only in 2020 is directly related to the pandemic conditions. however, the growth in 2019 was 57.7 percent, the highest figure in the last five years. it is noteworthy that the rapid growth of the volume of investments is a practical result of conducting a far-sighted and well-thought-out investment policy in our republic. in uzbekistan, the way is being opened for the management of investment projects and their development based on their economic strategic goals. in 2020, 202.0 trillion from the total sources of financing for the development of economic and social sectors in the republic of uzbekistan. the fact that soums have been appropriated is the basis of our opinion in this regard [7]. in 2020, a decrease in investment activity was observed, and compared to 2019, the volume of investments in fixed capital amounted to 91.8 percent. 202.0 trillion in 2020. soums of fixed capital investments were absorbed. 39,310.2 billion from centralized financing sources. soums or 19.5% of total investments and 8.0% less investments in fixed capital compared to 2019. table 1 the structural composition of investments directed to the economy of uzbekistan in 2020 [7] centralized investments 39310.2 billion soums total investment in fixed assets 202,000.1 billion soums decentralized investments 162,689.9 billion soums foreign loans under the guarantee of ozr 22,467.1 billion soums foreign investments and loans allocated to fixed capital amount to 86,647.0 billion soums foreign direct investment and loans 64 179.9 billion soums 250000 200000 150000 100000 2016 2017 2018 2019 2020 51232 202000,1 195927,3 72155,2 124231,3 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 253 www.americanjournal.org making investments in the country's economy, mobilizing investment projects in lagging sectors remains one of the main issues of our republic. at the same time, it should be recognized that in our republic, work with foreign investors who have the potential to invest in our economy is not being carried out at the level of demand. in particular, there is no opportunity to have the necessary and necessary information on the great opportunities for investment in uzbekistan in real time, as well as the comprehensive, favorable conditions and guarantees created for investors. in this sense, in attracting investment projects, improving the social and political environment of the country, introducing various perferences, low tax rates, as well as training mature personnel, organizing training and, of course, the national "uzbek model" in connection with future contracts it is appropriate to do. it is necessary to establish a special fund or economically important institution for the management of investment projects [8]. uzbekistan is a populous double land-locked country in the middle of central asia with an emerging lower-middle income economy. state-owned enterprises still dominate its industrial and financial sectors, and foreign trade centers on commodities. the declared goal of its current economic policy is to achieve sustainable growth and overcome underemployment and poverty as soon as possible. fast growing external public debt limits the availability of public funds and loans to support economic growth, so attraction of private and foreign investment (fdi) has become a vital priority. five years ago, the government of uzbekistan (gou) launched a program of radical market reforms, with a focus on improving the business environment. notable progress has been made so far in addressing a rage of systemic business regulation problems and overcoming the dominance of state monopolies, but more is yet to be done to completely unlock all benefits of fdi for the economy. uzbekistan has the potential to become a strong regional economy: a dynamic and entrepreneurial population, the largest in central asia; relatively good infrastructure; and a large potential consumer market. in the past, most fdi was directed into the oil, gas, and mining sectors. in recent years, however, there has been a trend towards increasing fdi in manufacturing, production and distribution of electricity, tourism, and banking. such diversification was facilitated by positive changes in state regulation and the beginning of a privatization program. further advancing privatization, as well as implementation of a long-expected capital market development policy, may create unique investment opportunities. over the past five years, the gou has made efforts to improve the investment attractiveness of the country. the gou has modernized its legislation through the adoption of the law on investments and investment activities and other acts that streamlined interactions of investors with the state, reduced the tax load, liberalized access to certain commodities, and started the privatization of major stateowned enterprises. as a result, the inflow of fdi has grown from about $2 billion in 2017 to over $8 billion in 2021. the government’s efforts to attract funding for various development and social support programs contributed to sustained economic growth despite severe quarantine restrictions in 2020. with the removal of major pandemic restrictions in 2021, gdp grew 7.4 percent. notable progress has been made in development of renewable energy capacity. uzbekistan already attracted fdi to develop nearly 4,000 mw of solar and wind capacity and plans to build another 4,000 mw in generation capacity by 2026, which will increase the share of renewables to 25 percent and displace 3 billion cubic meters of natural gas usage annually. the gou’s current environmental policy goal is to achieve a 35 percent reduction of greenhouse gas emissions per unit of gdp from 2010 levels by 2030. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 254 www.americanjournal.org conclusion the main goal of the investment policy implemented in our country in recent years is to direct the products or services of enterprises established with the participation of foreign investments to export. for this purpose, it is important to reorganize the activities of enterprises established on the basis of our local enterprises, to participate in them, that is, to participate in the decision-making of the parties based on the share of shares, and most importantly, to achieve an increase in the competitiveness of the products or services of enterprises with foreign investments in the foreign market. in our opinion, the implementation of the above recommendations will allow the active involvement of investment projects in the national economy and ensure the stability of the investment environment. the use of various methods to attract foreign investors is already bearing fruit. an active and welldirected investment policy is the most important factor for rapid and proportionate economic growth, implementation of deep structural changes and diversification of the economy. uzbekistan was able to create a unique investment climate, and the fact that the country is rich in resources and the wide opportunities given for the establishment of enterprises in the field of extraction and processing, as well as the modernization of existing ones, created the ground for the entry of foreign investors. also, in determining the effectiveness of investments in a specific sector; increasing the quantity and quality of investments in the development of science, education and culture; stimulation of focused innovation-investment strategies based on acquisition of basic innovations; it is necessary to study and evaluate the technological levels, scientific possibilities, inventions of existing productions that require state support. references 1. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis. "khalk sozi" newspaper, december 29, 2018 no. 271-272 (7229-7230). 2. resolution pq-4300 of the president of the republic of uzbekistan dated april 29, 2019 "on measures to further improve the mechanisms of attracting foreign direct investment to the economy of the republic". 3. liesbeth colen, miet maertens and jo swinnen. foreign direct investment as an engine for economic growth and human development: a review of the arguments and empirical evidence. january 2009 doi: 10.4324/9780203076880 https://www. researchgate.net/publication/237244956 4. mihaela peres, waqar ameer & helian xu (2018) the impact of institutional quality on foreign direct investment inflows: evidence for developed and developing countries, economic researchekonomska istraživanja. 5. андрианов в.д. россия: экономический и инвестиционный потенциал. – м.: оао «издательство «экономика», 1999. 662с. 6. www.stat.uz information on the official website of the state statistics committee of the republic of uzbekistan. www.stat.uz information on the official website of the state statistics committee of the republic of uzbekistan. 7. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. 8. salohiddin o’g’li a. m. improving the development of renewable energy resources projects //pedagog. – 2023. – т. 6. – №. 2. – с. 486-495. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 87 www.americanjournal.org development directions and problems of the insurance market of uzbekistan yusupov yusupjon shavkat ugli master of the academy of banking and finance of the republic of uzbekistan a b s t r a c t k e y w o r d s the insurance market of uzbekistan has achieved significant growth in recent years under the influence of various factors such as economic reforms, increasing public awareness and favourable government policies. however, there are several problems that prevent the optimal development of the sector. this article aims to study the current situation of the insurance market of uzbekistan, explore potential growth opportunities and solve important problems that require attention for the prosperity of the sector. through this analysis, policymakers, industry stakeholders, and researchers can gain valuable insight into the necessary steps to ensure sustainable growth and remove barriers to uzbekistan's insurance market. 1. introduction: the insurance market plays a crucial role in the economy by providing financial protection to individuals, businesses and government assets against unforeseen risks. the insurance industry in uzbekistan has grown significantly over the past decade, reflecting the country's efforts to stabilize and modernize its economy. however, many problems remain, which limit the opportunities for further expansion and development of the sector. 2. the current state of the insurance market: in this section, general information about the current state of the insurance market of uzbekistan is given, the main indicators such as market size, penetration and density are highlighted. it also examines the market structure, including types of insurance products and key players operating in the sector. 3. government policies and regulations: the development of the insurance market relies heavily on favorable government policies and regulations. this section analyzes the current insurance laws and regulatory documents in uzbekistan, evaluates their effectiveness in promoting market growth and protecting the interests of consumers. it also identifies potential policy improvements that could improve industry competitiveness and sustainability. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 88 www.americanjournal.org 4. opportunities for market development: this section identifies potential growth opportunities in the insurance market of uzbekistan. it discusses emerging sectors such as agriculture, healthcare and infrastructure development, where demand for insurance may increase. in addition, it explores opportunities for innovation and the integration of advanced technologies to expand the market and improve operational efficiency. potential growth opportunities in uzbekistan's insurance market include: agriculture: uzbekistan is famous for its agricultural sector, which contributes a lot to the country's economy. insurance products designed to cover damage to crops, livestock and farm equipment help farmers reduce risks and protect their investments. as the agricultural sector continues to grow and modernize, the demand for insurance coverage is likely to increase. health care: with a growing middle class and increased focus on health care, there is an opportunity in the insurance market to provide health insurance to individuals and families. providing comprehensive health insurance plans and offering additional wellness and preventive services will help meet the growing demand for healthcare services in uzbekistan. infrastructure development: construction projects such as important infrastructure, including roads, bridges, and energy facilities, are underway in uzbekistan. insurance solutions that cover construction risks, liability and property damage can play a critical role in supporting this development by protecting project owners, contractors and other stakeholders from the unexpected. innovation and technology integration: embracing advanced technologies such as artificial intelligence, blockchain and big data analytics can expand market and improve operational efficiency in the insurance industry. insurtech companies can develop innovative solutions that streamline processes, improve customer experience, and enable more accurate risk assessment and pricing. by entering these developing sectors and mastering innovations, the insurance market of uzbekistan can open untapped opportunities for development. however, it is essential that insurance companies adapt their products and services to meet the specific needs of these sectors and use technology to increase their capabilities and competitiveness. 5. problems facing the insurance market: a number of problems prevent the optimal development of the insurance sector in uzbekistan. this section discusses important issues such as low awareness and understanding of insurance products, poor risk management practices among insurance companies, limited variety of products and lack of qualified insurance professionals. the analysis provides insight into the causes of these problems and their impact on industry development. low awareness and understanding of insurance products: one of the main problems in the insurance market of uzbekistan is the low level of awareness and understanding of insurance products. many people are not familiar with the concept of insurance or the benefits it can provide. such lack of awareness leads to low demand for insurance products and restricts market growth. improper risk management practices in insurance companies: insurance companies in uzbekistan face difficulties in implementing effective risk management methods. this may be due to a variety of factors, including a lack of sophisticated risk assessment tools, insufficient data collection and analysis capabilities, and insufficient training and experience in risk management techniques. as a result, insurance companies may struggle to accurately calculate premiums, effectively manage claims and minimize potential risks, ultimately affecting their profitability and sustainability. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 89 www.americanjournal.org limited product diversification: the insurance market in uzbekistan is mainly focused on traditional insurance products such as life, health and property insurance. there is a lack of innovative and specialized insurance products that respond to customers' unique needs and emerging risks. this limited product diversification hinders market growth and innovation and reduces the ability of insurance companies to meet changing customer demands. lack of qualified insurance professionals: uzbekistan has a shortage of qualified insurance professionals, including underwriters, claims adjusters, risk managers and sales agents. this shortage hinders the industry's ability to provide quality services, assess risks effectively, and develop customized insurance solutions. a shortage of skilled professionals also affects the development of local talent and expertise in the insurance industry, limiting opportunities for professional growth and knowledge transfer. impact on the growth of the industry: these problems in the insurance market have a great impact on the growth and development of the industry in uzbekistan. low awareness and understanding of insurance products limits the market potential as many potential customers do not perceive the value of insurance. improper risk management methods can lead to financial losses for insurance companies and create instability in the market. limited product diversification reduces the industry's ability to offer innovative solutions and meet diverse customer needs. the lack of qualified insurance professionals hinders the competitiveness of the industry and hinders the overall growth and development of the insurance sector in uzbekistan. addressing these challenges is critical to unlocking the industry's full potential and ensuring its long-term sustainability. 6. recommendations for future development: this section provides recommendations for policymakers, industry regulators, and stakeholders to ensure sustainable growth and address the challenges facing the insurance market in uzbekistan. these recommendations may include measures to increase consumer education and awareness, strengthen risk management practices, encourage product diversification, and develop the human capital needed for a thriving insurance industry. summary: in conclusion, it can be said that the insurance market of uzbekistan has achieved significant growth under the influence of various factors. however, issues such as low awareness, limited product diversification and risks associated with inadequate risk management practices still hinder the optimal development of the industry. by solving these tasks and implementing the necessary reforms, uzbekistan can open up the full potential of the insurance market, ensure stable growth, and contribute to the overall economic development of the country. references 1. баратова д. ўзбекистонда суғурта бозорининг ривожланиш кўрсаткичлари ва аҳолига хизмат кўрсатишдаги ўрни. //иқтисодиёт ва инновацион технологиялар, №5 2017 й. “iqtisodiyot va innovatsion texnologiyalar” (economics and innovative technologies) ilmiy elektron jurnali http://iqtisodiyot.tsue.uz/journal 350 2. тошназарова л. ўзбекистон суғурта бозорида рақобатни ривожлантириш йўллари. //иқтисодиёт ва инновацион технологиялар, №4 2021 й. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 90 www.americanjournal.org 3. умиров а.т. ўзбекистон суғурта бозорида рақобат муҳитининг хорий ҳолати ва унинг таҳлили.//иқтисодиёт ва таълим, №1 2020 й. 4. аробиддин т.қ. “ўзбекистонда суғурта бозорини ислоҳ қилиш ва уни жадал ривожлантиришни таъминлаш масалалари”. //uzbridge электрон журнали.№1-сон, 2020 й. 5. норқобилов и.ш. “рақамли иқтисодиёт: ўзбекистонда ривожлантириш истиқболлари ва жаҳон амалиёти” мавзусидаги халқаро илмий-амалий онлайн конференция. тошкент, 2020 йил 24 декабр. chi” 1991. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 46 www.americanjournal.org the role of the investment and innovation potential of enterprises in attracting foreign investments to the country’s economy gafurova umida fatikhovna phd, senior lecturer, department of “finance”, tashkent institute of finance, tashkent city, uzbekistan. e-mail: umidag85@gmail.com a b s t r a c t k e y w o r d s this article examines the essence of investment attractiveness, the opinions of economists about increasing investment attractiveness in attracting foreign direct investments. also, the factors influencing the investment attractiveness of our country were analyzed, and internationally recognized indicators assessing the country’s business environment and the level of investment risks were discussed. scientific conclusions and recommendations on increasing investment attractiveness in attracting foreign direct investments have been formulated. investment, investment climate, investment attractiveness, beri – (business environment risk intelligence) index, indicator, foreign direct investment, recipient, donor, business, segment, progression, investment potential. 1. introduction. let’s not compare the economy of any developed country, first of all, as a result of the healthiness of the investment environment, its attractiveness, we can witness that the trends related to the country’s economy are achieving progressive results through the rapid influx of investments. today, at the stage of globalization and technological armament in the world, the role of investment flow in the interpretation of the combination of economic development is of great importance. in order to attract foreign investments through the position of the recipient countries, the investment potential created in the country, the modern infrastructure, the socio-economic policy of improving the investment environment, in particular foreign they pay attention to the unhindered entry of companies, the inviolability of private property, the establishment of special economic and small industrial zones in the country to direct one’s own capital as a business entity, and the availability of tax and other financial benefits. the president of the republic of uzbekistan, sh. m. mirziyoyev, in his address to the oliy majlis dated december 29, 2020, stated that “economic growth is achieved primarily by creating competitive industrial chains and increasing investments in such projects [1]” those who insisted. currently, largescale changes and structural reforms are being carried out in all sectors of the economy of uzbekistan. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 47 www.americanjournal.org the implementation of such reforms directly depends on the investment process in the country, the state’s investment policy, its priorities, and the investment activity of enterprises in the country. 2. literature review considering the factors influencing the formation of a favorable investment climate in the country/region, it should be noted that the integration of the state into the world community in terms of investment attractiveness is crucial. the strategy of raising the country’s investment profile is important for attracting foreign direct investment [2]. interpretation of “investment potential” as a set of investment resources, consisting of part of the accumulated capital, expressed in the form of investment demand in the investment market, which has the potential to become a real investment demand that meets the material, financial and intellectual needs of capital reproduction reaches [3]. in particular, the most important factors for assessing the investment potential of a country/region are: resource raw materials (averaged supply of the main types of natural resources); production (total output of farms in the region); consumption (purchasing power of the population of the region); infrastructure (economic and geographical location of the region and its infrastructure); intellectual (level of education of the population); institutional (level of development of leading institutions based on a market economy); innovative (the degree of implementation of the achievements of scientific and technological development in the region). it should be noted that investment potential is one of the criteria for classifying regions [4]. the attractiveness of the investment climate, the economic development of each region depends on the potential of capital, labor resources and the level of their use. it is generally accepted that the economic potential of a region and its potential is determined by the production of vital goods through the efficient use of all the complex resources available there [5]. if the tendency of accumulation within the country is greater than investment, then the exports in this country will exceed the volume of imports. otherwise, the country’s exports will be less than its imports. the country, which consumes more than it can afford, seeks to outsource its imports by attracting foreign investment. in this case, the attracted investments take the form of loans [6]. defining a normative ratio between dividends and reinvestment in a country’s dividend policy, protecting the rights of minority shareholders, increasing stock market prices, and expanding business activities can increase a company’s investment attractiveness, which has a positive effect on the country’s investment attractiveness [7]. in our opinion, in order to ensure investment attractiveness and rational use of investment potential, it is necessary to pay attention to: the region’s opportunities to increase investment attractiveness in order to stabilize the economy, accelerate investment activities aimed at innovative renewal of socioeconomic structure; increase and innovative investment [8]. regardless of the field in which joint-stock companies operate in the country, one of the important tasks is to place additional financial resources, including attracting foreign investment. one of the most modern way to attract investment in joint-stock companies is to use the ipo mechanism [9]. 3. research methodology in this article, the scientific works and articles of the economists of uzbekistan and foreign countries devoted to the analysis of sources representing the role and importance of investment attractiveness in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 48 www.americanjournal.org the development of the country’s economy are studied. economic research methods such as graphical grouping, economic-statistical analysis and synthesis, logical reasoning were widely used as a research methodology. 4. analysis and discussion of results naturally, not all of the indicators in this ranking are perfect. they exclude the following important factors: macroeconomic policy, quality of infrastructure, skills of the workforce, exchange rate fluctuations, investor opinion, the risk of corruption and its level. the world bank’s ranking includes government-created administrative procedures for starting and running a business, as well as key factors related to the country’s economic potential (market size, labor costs and ect.), as well as the risks that a potential investor may encounter. investment environment is widely used concept that covers all the issues that an investor should consider. the investor evaluates the advantages and disadvantages of investing in a particular country, as well as the ideology, policy, economy and culture of the country in which he intends to invest his capital [10]. the issue of creating a positive investment climate should not be interpreted as a key process in the globalization of the economy, and as a result, the expansion of access to investment resources, as well as increased competition among investors. if we want to increase the volume of foreign investment, of course, to create a more favorable and high level of investment climate and regional conditions than others (competitors), as well as it is needed to focus on ensuring to stimulate domestic (national) investment which is risk-free. figure 1. the investment potential of the country and a set of factors influencing it [11] american journal of business management, economics and banking volume 10 march, 2023 p a g e | 49 www.americanjournal.org in the current socio-economic environment, the inflow of investment depends on the development of innovative industries and the development of innovative entrepreneurship, the investment climate and the investment mechanism. studies show that if the investment climate is good, on the one hand, it will increase domestic investment, and on the other hand, it will increase savings in relation to consumption as part of the planned expenditures. this is a guarantee of high economic growth. in the course of research on the regional economy, the study grouped the factors that indicate the investment attractiveness of the regions into a single system. it summarizes and classifies scientificpractical views that represent the socio-economic potential of the region, reflecting the complex indicators of the quality of the main groups. the positive concentration of the various factors mentioned above allows for the active inflow of foreign investment. and that, of course, creates more jobs, more income, more opportunities for economic growth [12]. in addition, the most important thing is that foreign investors not only bring capital, but also bring advanced knowledge and experience from their home countries. this will allow the country to grow in the future. figure 2. forms of attracting foreign investment [13] in addition to directing foreign direct investment into the country’s economy, socio-political issues will also be addressed. in the context of globalization, not only economic but also social benefits have a significant impact on investors decisions. (figure 2 below). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 50 www.americanjournal.org taking into account that the issue of investment in our country has not lost its relevance in the last 5 years, as a result of the analysis of investments in fixed capital, we can see that the rate of growth of investment into the country has been recorded from year to year (table 1). table 1 investments in fixed capital by regions [14] territories 2020 2021 2022 republic of uzbekistan 95,6 102,9 105,0 republic of karakalpakstan 69,9 105,1 118,9 andijan 110,6 106,0 114,6 bukhara 104,7 147,4 98,5 jizzakh 147,4 72,4 106,9 kashkadaryo 76,5 77,8 96,0 navoi 77,1 86,0 105,9 namangan 88,0 100,5 102,0 samarkand 128,8 98,7 122,5 surkhandarya 77,4 109,7 100,6 syrdarya 111,2 107,7 127,6 tashkent 92,2 120,3 102,4 fergana 113,5 105,7 112,4 khorezm 92,7 139,3 108,7 tashkent city 108,6 105,0 97,6 it can be seen from the data of the above table that the growth rate of investments in fixed capital is given in the form of percentage. compared to 2020-2021, the growth rate in 2022 is 105.0 percent, which, in turn, indicates that investments in fixed capital in uzbekistan have a growing trend and a favorable investment environment. in the case of such an investment, the further increase in growth rates is determined by the creation of a favorable environment for investors, the total economic, legal, political and social conditions that affect the dynamics and structure of investment. figure 3. the share of foreign countries in the volume of foreign investments in uzbekistan (in percent) [15] growth rate % 19.9 10.4 6.5 4.6 3 2.7 2.6 2.1 1.8 0 5 10 15 20 25 china turkey germany saudi arabia italy cyprus switzerland great britain usa american journal of business management, economics and banking volume 10 march, 2023 p a g e | 51 www.americanjournal.org it is known that the role of foreign direct investments in the stabilization of the economy of our country is incomparable. at this point, we can see the countries with the highest share in the volume of foreign investment absorbed in uzbekistan. the volume of investments in fixed capital in uzbekistan is 190 trillion. amounted to soums. according to the data of the state statistics committee, the total amount of foreign investments and loans allocated to fixed capital is 72 trillion. was recorded in the amount of soums [16]. the figures in the above figure prove that among the investor countries with the highest share in the total amount of foreign investment and loans, russia took the first place with 21 percent. we can see this indicator in the rest of the countries, including china 19.9%, turkey 10.4%, germany 6.5%, saudi arabia 4.6%, italy 3%, cyprus 2.7%, switzerland accounts for 2.6 percent, great britain 2.1 percent, and the united states (united states) 1.8 percent. 5. conclusions and suggestions over the past few years, uzbekistan has undergone rapid economic transformation and is increasingly seen in the international community as a symbol of openness, renewal and determination to overcome various barriers to business and investment. the state of the investment environment is an important process not only for the investor, but also for the recipient of the investment. 1. consistent implementation of structural changes aimed at ensuring high competitiveness of the national economy; 2. develop models for the efficient use and optimal proportion of economic resources based on the law of efficient and limited reduction of capital resources in the increase of regional wealth; 3. develop and implement comprehensive programs to ensure the sustainable development of the regions and their smooth and uninterrupted development; 4. support for priority sectors that serve to increase the import and export potential of the economy, as well as create high added value; 5. support for priority investment projects aimed at the development of regional infrastructure; 6. ensuring the attractiveness of the investment environment in order to increase the innovation and investment activity of local and foreign investors; 7. creating a favorable business environment for high-tech and high value-added joint projects; 8. in order to maintain high and stable rates of economic growth, it is necessary to create a stable and competitive model of the country’s economy in which most of the assets of the banking system are in the hands of private investors [17]. based on the scientific suggestions and recommendations given above, their deep study, analysis and practical implementation will give results in the near future. also, by creating a favorable investment environment in the country, it has a positive effect on further increasing the investment attractiveness of the state and further improving the business environment. literatura/reference: 1. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis (december 29, 2020). 2. smaglyukova t.m. general approaches to the formation of regional investment policy // modern problems of science. 2014. no. 1. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 52 www.americanjournal.org 3. tumusov f.s. investment potential of the region: theory, problems, practice. m., “economics”, 1999. 272-page. 4. zenchenko s. v., shemyotkina m. a. “investment potential of the region”. collection of scientific works sevkavgtu. series “economics”. 2007. no. 6. 5. akerman ye.n., mixalchuk a.a., trifanov a.yu. typology of regions as a tool for co-organization of regional development // bulletin of the tomsk state university. un-a. economy. no. 331. 126-131pages. 6. gozibekov d.g. problems of investment financing. dissertation for the degree of doctor of economics.– t., 2002. 33-page. 7. s.elmirzayev. dividend policy analysis and dividend aristocrats in developed countries.// scientific-electronic journal “international finance and accounting”, №2, 2020. – 11-page. 8. nodir jumaev. “ways to attract investment with assessment of investment potential of the regions” international journal of economics, commerce and management united kingdom vol. vii, issue 2, february 2019 licensed under creative common, 664-page. 9. aziz shomirov. “the role of ipo mechanisms in attracting investments to joint stock companies: necessity and prospects”, international finance and accounting: vol. 2021: iss. 1 , article 19. 10. pinali e. investment climate and the private sector. // economic review. 2005., no. 9, 42-43-pages. 11. chinkulov k. r., ochilov b. b. formation of investment environment: scientific and methodological directions of territorial assessment //international journal of multicultural and multireligious understanding. – 2022. – т. 9. – №. 3. – с. 408-415. 12. butaev, javlonbek. "activities of large issues in the economy of uzbekistan: analysis and results." academicia: an international multidisciplinary research journal 11.6 (2021): 757-766. 13. nasirov e.i., asamkhodjayeva sh.sh. financing of investment projects. textbook. t .: economics and finance, 2020. freely prepared by the author using the information on pages 77-79. 14. prepared by the author based on information from the official website of the state statistics committee of the republic of uzbekistan www.stat.uz 15. prepared by the author based on information from the official website of the central securities depository of the republic of uzbekistan – www.deponet.uz 16. bakhtiyarovich, ochilov bobur. "investment activities and performance of gigamon companies around the world." czech journal of multidisciplinary innovations 6 (2022): 1-6. 17. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. https://www.researchgate.net/scientific-contributions/n-x-jumaev-2153773527 http://www.stat.uz/ http://www.deponet.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 34 www.americanjournal.org the role of entrepreneurial strategies in achieving organizational excellence assistant lecturer .mohammed raoof mhmood al-musawi (1) mohamed@uomisan.edu.iq assistant lecturer .mohammad ali hussein al-saedi (2) mohammedali@uomisan.edu.iq assistant lecturer. abbas elaibi hassoon (3) abbas.aleaybi@uomisan.edu.iq economics and administration college – misan university a b s t r a c t k e y w o r d s the research mainly aims to know the role of entrepreneurial strategies with its sub-dimensions in achieving organizational excellence, and the research was applied to a sample of (52) individuals that included directors of scientific departments and rapporteurs in the faculties of the university of misan. the research is a set of statistical methods for analyzing, interpreting and processing data through the statistical package (spss v.24), and the research started from a major problem that states (what is the role of applying entrepreneurial strategies in achieving organizational excellence), and the research reached a set of conclusions, the most prominent of which were (with the surveyed sample has absolute confidence that the application of entrepreneurial strategies allows the exploitation of all critical opportunities using effective strategic planning that depends on a common organizational vision and the adequacy of available resources, by increasing the orientation towards a strategy of creativity, and facilitating the processes of readiness for initiative and aggressive competition), and in light of the conclusions, a set of the most important recommendations were (that the university is considered to be organizationally distinct, the senior management must make deliberate efforts to engaging employees with leadership competencies and skills in order to support the vision of quality and service delivery). entrepreneurial strategies (es) organizational excellence (oe) . american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 35 www.americanjournal.org introduction the wide scientific and technological development in the business environment leads to an increase in competition between organizations, and this undoubtedly pushes the organization to search for organizational and administrative practices that can help it achieve excellence, which leads to prosperity and growth in the business world. excellence in organizational business is considered it is one of the main administrative successes and strategic performance, as well as one of the most important goals of business organizations, as the great expansion of the iraqi higher education and scientific research system, the intellectual orientation towards the privatization mechanism of higher education, and the great increase in universities and governmental and private colleges, it has become a duty to distinguish other organizations and its effectiveness through the use of effective entrepreneurial strategies through which proactive decisions are taken with regard to the follow-up and development of innovative products / services in order to meet customer needs and gain a competitive advantage. therefore, knowledge and intellectual progress forced organizations to strive for comprehensive development through strategic vision and strategic implementation of the entrepreneurial direction, from this point of view, this research addresses a problem that is not insignificant, which is the lack of interest in striving towards achieving excellence in organizational work and not focusing on effective entrepreneurial strategies that contribute to achieving organizational excellence. the first topic / research methodology first: the research problem the faculties of the university of maysan seek to sustain their competitive advantage through the organizational capabilities that these faculties possess in order to sustain these capabilities, and based on the objectives of the faculties of the university of maysan to reach leadership in all its fields, it is necessary to employ effective leadership strategies in order to build their capabilities to reach outstanding organizational work. in light of the above, this research raises the following main questions: 1what is the role of entrepreneurial strategies in achieving organizational excellence for the sample surveyed? 2does the university of maysan apply the research sample leadership strategies? 3is there a correlation between the entrepreneurial strategies and organizational excellence in the sample studied? second: research objectives the main objective of the research is clarified through the role of pioneering strategies in achieving organizational excellence by building a statistical and applied framework based on philosophical and methodological ideas. the main objective of the research is divided into two secondary objectives, namely: 1ensuring the impact, effectiveness and efficiency of the pioneering strategies used in achieving organizational excellence. 2contribute to providing a scientific variety of philosophical recommendations that are approved in the light of the conclusions reached, which contribute to completing the perspective on the areas of application of leadership strategies in the faculties of the university of maysan. third: the importance of research 1provide a description and scientific diagnosis of the research variables, and provide a hypothetical chart showing the type of intellectual and statistical relationship between those variables. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 36 www.americanjournal.org 2this research is a response to the dynamic environment variables, and the most important issue of leadership and excellence in organizational work in arab and foreign countries. 3providing sound intellectual foundations that help the researched colleges to identify the dimensions of entrepreneurial strategies and their role in achieving distinguished organizational work. fourth: the hypothetical research scheme in this research, the researcher relied on only two variables, namely the independent variable and the dependent variable, as the independent variable represented the entrepreneurial strategies, while the dependent variable represented organizational excellence. figure (1) shows the research scheme: source: prepared by the two researchers figure (1) hypothesis research scheme fifth: research hypotheses the research hypotheses were formulated as follows: the first main hypothesis: there is a significant correlation between the entrepreneurial strategies and the achievement of organizational excellence, from which the following sub-hypotheses are branched: athere is a significant correlation between the creativity strategy and the achievement of organizational excellence. b there is a significant correlation between the initiative strategy and the achievement of organizational excellence. cthere is a significant correlation between the offensive strategy of competition and the achievement of organizational excellence. the second main hypothesis: there is a significant influence relationship between the entrepreneurial strategies and the achievement of organizational excellence, from which the following sub-hypotheses are branched: athere is a positive and significant influence relationship for the creativity strategy in achieving organizational excellence. b there is a positive and significant influence relationship for the initiative strategy in achieving organizational excellence. cthere is a positive, significant effect relationship of the offensive strategy of competition in achieving organizational excellence. entrepreneurial strategies offensive rivalry initiative creativity organizational excellence h1 h2 relationship influence relationship american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 37 www.americanjournal.org sixth: research measurement tool in the applied framework, or the so called field framework, the researchers relied on the questionnaire research tool, and table (1) presents the components of this tool, the measurement tool, and the number of paragraphs for each variable. table (1) the main variables and their sub-dimensions included in the questionnaire number of paragraphs sub-dimensions main variables axles 4 gender, age, educational attainment, scientific title personal data the first axis 5 creativity entrepreneurial strategies second axis 5 initiative 5 offensive rivalry 15 the total 10 organizational excellence organizational excellence the third axis 10 the total 25 total summation source: prepared by the two researchers based on the outputs of the questionnaire seventh: measuring the stability of the tool the statistical tool alpha-cronbach was relied upon; in order to measure the internal consistency or the level of stability of the main variables, and table (2) illustrates this. table (2) the reliability coefficient (cronbach's alpha) for the search scale stability rating (cronbach’s alpha) coefficient entrepreneurial strategies very well 0,889 (independent variable) very well 0,888 creativity very well 0.862 initiative very well 0.869 offensive rivalry source: prepared by the two researchers based on the outputs of the program (spss v.24) eighth: the research community and its sample the current research community test took place on one of the universities of the iraqi ministry of higher education, which is the university of misan. the intentional sample was relied upon. the test was conducted on an intentional academic sample represented by the heads or directors of the scientific departments and the rapporteurs of the scientific departments. thus, the target sample reached (56) individuals. as the researchers distributed (56) questionnaires to the target sample, and (52) valid forms for analysis were retrieved, and thus the statistical sample that enters the field of statistical analysis became (52) forms. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 38 www.americanjournal.org the second topic / the theoretical side first: entrepreneurial strategies: 1the concept of entrepreneurial strategies: many business organizations have realized that the only way to achieve permanence, growth and expansion in competitive advantage in an environment of uncertainty is to achieve effective strategic leadership, and take the future into a strategic in-depth view in order to build contemporary sophistication; therefore, recent years have witnessed intense competition between organizations in order to search for what distinguishes them from other competitors, using effective entrepreneurial strategies, as these strategies are represented by creativity, innovation and initiative, as these strategies are intellectual and philosophical paths in the light of which organizations are launched in order to reach organizational success. in general, and access to distinguished organizations in particular. it has been defined as that effective strategy that contributes substantially to creativity, creative innovation, and optimal excellence, as well as helping employees to participate in decision-making and take responsibility for them (keuper et al, 2006: p390), and (kurtako, 2014: p4) sees that the strategies entrepreneurship is the strategic tool that is based on in order to achieve the objective vision of organizations, and it is the main key to achieving optimal value at the strategic level, while (al-sultani et al., 2018: 284) defines it as the intellectual method that is based on identifying and exploiting possible opportunities, and then adapting to strategic and environmental changes, based on generating competitive advantage and then maintaining it as much as possible. the researchers believe that a general concept of entrepreneurial strategies can be given as contemporary strategies that depend on leadership in their results, in coordination between strategy and entrepreneurial businesses, and focus on pivotal and flexible business, depending on available opportunities, owning speed and access to organizations that apply them to leadership in their businesses, creativity and advanced innovation, as well as being organizations proactive in its work, and its application leads to growth and long-term survival. 2dimensions of entrepreneurial strategies: • creativity strategy: the linguistic origin of the term creativity in the arabic language is the one who innovated or innovated something, and the word “badee’” means hadith or newness in everything, while in terms of the english language, the word “innovation” came from the latin word “innovare” and linguistically means by that to renew, and administratively it means creativity is the tendency to adopt creative ideas, knowledge and experiences, by distinguishing something that has an existence, adding creativity to it, and then entering the markets with a balanced and high confidence (mohammed, 2013: p. 273), while he sees (osman et al, 2015: p597) that creativity is defined as a perceived organizational culture, or philosophical ideas at work that are adopted through new ideas and knowledge, which lead to the expansion of productive horizons for products and technological methods. (al-tawil et al., 2012: p.9) explains that creativity is the method by which the organization reaches to present new products or new technologies to satisfy customers' requirements. the researchers believe that the concept of creativity is the beating heart of the leadership process, so it can be said that the creativity strategy is the important component on which business organizations depend to maintain their market position and enhance their leadership position among competing organizations. achieving excellence in organizations. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 39 www.americanjournal.org • initiative strategy: the initiative strategy, or as it is called proactive, is one of the most important pioneering components, which expresses the aspirations of the senior management to be proactive in winning what is successful, and proactive in satisfying the needs of its customers with what is contemporary and modern. (pharaoh and others, 2015: p. 125), while (al-nusairi and abu hussein, 2017: p. 174) explains the concept of the initiative strategy as a proactive process based on sharing events and changes, monitoring and adapting to changes in the dynamic environment, and accessing and exploiting benefits, and the concept of this strategy is associated with many entrepreneurial concepts in any organization, which relate to the optimal exploitation of the available opportunities and the competition with other competitors to provide what is new and different from its competitors, and (ahlbrog, 2019: p150) shows that the entrepreneurial organizations seek as much as possible to work effectively quickly in order to make the most of the the market is ahead of any competing organization, and this puts the organization at risk because of the unstable dynamic environment, and this creative strategy helps in enabling business organizations to have the ability to provide flexible and creative products in the market, with high recommendations that outweigh competitors. (mohamed and fathi, 2011: pg. 53) others have argued that a initaitive strategy is the ability to take a higher risk more than the environmental conditions surrounding the organization, and it includes three main elements: aprosecuting or not prosecuting competitors with creativity. b the comparison between the real attempts. cattempting to cooperate with competitors in order to contain them by establishing strategic alliances with them. the researchers believe that this strategy is an effective tool that contributes to building and strengthening the entrepreneurial processes in the organizations, and enhances their leadership and competitive position in the competitive environment surrounding them, through their acceleration in entering the markets or providing proactive products, and this distinguishes them from other competitors. • rivalry offensive strategy: by aggressive competitive strategy, it means that organizations face difficulties and challenges in front of other competing organizations, with the aim of controlling, leading, and dominating the market in front of its competitors (lumpkin & dess, 1996: p148), and (alipour et al., 2013: p142) explains that this strategy represents a standard that is judging the extent of the organization’s aggressive attacks on its competitors in the market, and in this regard, this strategy reflects the strength of the endeavors of other organizations in order to reach more achievements. responding to the available opportunities, while the offensive competition strategy is a subjective reaction to the totality of threats. (farahmand et al.,2011:1226). the researchers believe that the competitive offensive strategy represents a group of business efforts that work better than its competitors in providing other services, and often it provides a set of measures in order to combat its competitors. market opportunities, while the aggressive competitive strategy focuses directly on the totality of market opportunities. second: organizational excellence: 1the concept of organizational excellence: by reviewing the management literature for the term organizational excellence (oe), there are different definitions and opinions about organizational excellence that differ according to the evolution of the number of models of excellence, as it can be used as a reference for organizations and quality specialists, and this difference in the oe can lead to an ambiguous perception of the level of performance required to american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 40 www.americanjournal.org achieve organizational goals and standards (al-weshah , 2019 : 115). excellence is the result of a continuous journey of hard work based on correct planning, correct vision, and clear goals that the organization aspires to achieve, as no organization can achieve excellence without exerting efforts and work continuous improvement and development in organizational performance, where achieving the highest possible level of quality, mastery and excellence has become an urgent and vital requirement. in addition, it cannot be excluded or neglected due to the rapid development, change and technological progress in the environment (alhalaseh & ayoub, 2021: 22). the european foundation for quality management excellence model (efqm, 2017) states that excellence is a way of life that can occur in organizations, whether small or large, governmental or non-governmental, provide a service or produce a commodity by building partnerships and taking responsibility in order to achieve a sustainable future. organizational excellence is defined as the ability of organizations to pursue their goals by adopting and using modern methods to reach different goals, for example, providing high quality products and services and generating more profits to achieve a sustainable competitive advantage (al-ma'aitah et al, 2020: 6930). he also defined organizational excellence as a dynamic process that seeks to enhance the performance of organizations and improve or increase the level of quality of goods and services (durrah et al, 2014: 21). either (al-thaqafi, 2019: 10) he defined it as a qualitative process in which all departments work in order to better understand the activities and operations of the organization, work to address errors and improve its operations, which leads to improving its effectiveness. increasing its competitive strength and excellence in its performance. according to (hijjawi, 2021:59) organizational excellence is an organizational commitment to sustainable development through improving organizational culture, work environment, human resources and innovation. researchers define organizational excellence as basically achieving high levels of performance by providing services to others in an innovative and distinct way in order to outperform competitors, creating an organizational environment that supports creativity and independence at work and thus achieve better chances of success in the business environment. 2the importance of organizational excellence: achieving a continuous level of performance and success is critical and specific in the vision and plans of the organization, as no organization can achieve comprehensive excellence in its goals and objectives without continuous efforts and studied strategic entrepreneurship, and accordingly organizational goals and the push towards product quality, customer satisfaction and excellence in sales and profit growth have become a vital requirement for innovation, proactive thinking and a strategy to search for opportunities (osemudiamen et al,2022: 234 ). the importance of organizational excellence stems from the ability of organizations to crystallize the forces supporting excellence in organizations by achieving rapid rates of change in addition to achieving unlimited competition and preserving organizational status (human power, organizational structure and organizational culture), and then increasing the sense of quality and the possibility of employing technology in information and innovations, and the importance of organizational excellence (belkabir , 2016 : 168 ), can be clarified through the following: 1 . organizations need ways and means to know the obstacles they face as they arise. 2 . organizations need means to gather information in order to be able to make the necessary decisions regarding human resources, for example (who should be promoted, which employee is characterized by initiative and excellence in performance). 3. the organization needs to continuously develop its members, whether managers or employees, so that they can help in making the organization more distinguished in its performance compared to competing organizations. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 41 www.americanjournal.org 4 . also, the organization needs to provide the necessary skills for the decision maker, whether they are individuals or a group, and to focus on the sensitivity of the role he plays and the importance of achieving creativity and excellence in organizations. the third topic / the practical side first: a statistical description of the responses of the research sample this description is used in order to analyze and interpret the results of the responses of the research sample, in order to know the degree of agreement among the sample members on the paragraphs of the questionnaire and the overall dimensions of the research,and to achieve this statistical goal, a set of statistical tools was relied on, represented by the arithmetic mean, standard deviation, and coefficient of variation, using the statistical program spss v.24)), as shown in table (4). 1 a statistical description of the entrepreneurial strategies for the purpose of testing and diagnosing the answers of the research sample towards the independent variable, towards each of the dimensions of the entrepreneurial strategies, the arithmetic means, the standard deviation and the coefficient of variation were calculated for the answers of the research sample, as follows: a creativity strategy: it was found that the arithmetic mean of the total first dimension represented by the creativity strategy is (3,676), while the standard deviation and the coefficient of variation were (0.712) and (0.193), respectively. this statistical description indicates that the faculties of maysan university are interested in the concept of creativity, and are trying to keep pace with scientific and technological development in all iraqi, arab and foreign universities. bthe initiative strategy: the arithmetic mean of the total second dimension represented by the initiative strategy was (3,842), while the standard deviation and the coefficient of variation, respectively, amounted to (0.786), (0.204), and the above results indicate that the colleges of maysan university are interested in this strategy, and there is agreement among a sample research that the university tends to obtain advanced positions at the local level first and the arab second. ccompetitive offensive strategy: the arithmetic mean of the total third and final dimension represented by the competitive offensive strategy reached (3,776), while the standard deviation and the coefficient of variation, respectively, amounted to (0.694) and (0.184), and this is evidence that the top management at the university of maysan always seeks to compete. with other universities in general, and in particular private universities and at the level of evening studies, where they provide services related to education first and costs second, which is reflected positively for both parties, namely the student and the university. 2statistical description of organizational excellence: table (3) shows that the dependent variable representing organizational excellence reached its mean (3,870), while its standard deviation was (0.811), and the coefficient of variation cycle reached (0.209), and through the above results it is clear that there is a good agreement the respondents of the sample have the idea that the university is concerned with its daily work and strategic plans in an attempt to reach distinguished works and distinct plans to reach the best degrees of organizational excellence. table (3) statistical description of the entrepreneurial strategies variable and the organizational excellence variable variation coefficient standard deviation arithmetic mean entrepreneurial strategies variable 0,193 0,712 3,676 creativity strategy 0,204 0,786 3,842 initiative strategy american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 42 www.americanjournal.org 0,184 0,694 3,776 offensive rivalry strategy 0,209 0,811 3,870 organizational excellence variable source: prepared by the researchers based on the outputs of the program (spss v.24) second: hypothesis testing for the purpose of testing the hypotheses that have been developed; the researchers used statistical tools, the first represented by the correlation coefficient (pearson) for the purpose of testing the correlation hypotheses, while the second tool represented by the simple linear regression coefficient for the purpose of testing the hypotheses of the effect, as follows: 1correlation test the researchers based on the statistical tool the simple correlation coefficient (pearson), which is one of the most important statistical tools that help measure the direction of the relationship first, and its strength second, between the research variables represented by entrepreneurial strategies and their dimensions and organizational excellence. the meaning of the first main hypothesis is (there is a significant correlation between the entrepreneurial strategies and the achievement of organizational excellence), the correlation relations will be clarified as in table (4), and as follows: table (4) matrix of correlation coefficients of entrepreneurial strategies and organizational excellence (**) significant correlation at the level (0.01). (*) significant correlation at the (0.05) level. 1table (4) shows that there is a significant correlation between the creativity strategy dimension and the second variable, organizational excellence,the value of the correlation relationship was (**0.570), and at the level of significance (0.01) and (0.05), that is, by (100%), and this indicates that there is a significant correlation between the creativity strategy and the organizational excellence variable, and that any increase in the first dimension, it leads to an increase in the achievement of organizational excellence, and in light of these results, we accept the first sub-hypothesis, which states (there is a significant correlation relationship between the creativity strategy and the achievement of organizational excellence) 2there is a significant correlation relationship between the second dimension of the entrepreneurial strategies variable, which is the initiative strategy dimension with the second variable, organizational excellence,the value of the correlation relationship was (**0.622), with a significant amount of (0.01) and morale relationships organizational excellence y entrepreneurial strategies the relative importance of relationships number of relationships %100 4 0,570** creativity strategy x1 %100 4 0.622** initiative strategy x2 %100 4 0.487** offensive rivalry strategy x3 %100 4 0.620** total entrepreneurial strategies x 100% 16 4 the total american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 43 www.americanjournal.org (0.05), i.e. at a rate of (100%), and this indicates the existence of a significant correlation relationship between the initiative strategy and the organizational excellence variable. in light of these results, we accept the second sub-hypothesis, which states (there is a significant correlation between the initiative strategy and the achievement of organizational excellence). 3there is a significant correlation relationship between the offensive rivalry strategy with the second variable of organizational excellence, and the value of the correlation relationship was (**0.487), and at the level of significance (0.01) and (0.05), that is, by (100%), this indicates that there is a significant correlation between the offensive rivalry strategy and the dependent variable, and thus we accept the third sub-hypothesis, which states (there is a significant correlation between the offensive rivalry strategy and the achievement of organizational excellence) 2impact test this test aims to determine the extent to which the independent variable (entrepreneurial strategies) have an effect on the dependent variable (organizational excellence), using an important statistical tool, the linear regression. in addition, this test aims to estimate the size of the effect performed by the entrepreneurial strategies variable and its dimensions in the organizational excellence variable, as well as determining whether the second main hypothesis is accepted or rejected, which is (there is a significant influence relationship between the entrepreneurial strategies and the achievement of organizational excellence), and it will be explained below and as in table (5), and through the equation below: table (5): the influence relationships between entrepreneurial strategies and organizational excellence organizational excellence f r2 b a entrepreneurial strategies and their dimensions 11.566 0.457 0.510 0.330 creativity strategy 12.543 0.408 0.522 0.300 initiative strategy 9.006 0.428 0.447 0.246 offensive rivalry strategy 16.467 0.606 0.670 0.397 total entrepreneurial strategies the tabular value of f = 7.170 ( and a level of morale (0.01 source : prepared by the researchers 1we note from table (5) that the value of (f) tabular is higher than its calculated value between the dimension of creativity strategy and the dependent variable organizational excellence, which amounted to (11,566), and these results indicate that there is an effect of the first dimension of the independent variable on the dependent variable organizational excellence. and an indication that the regression model is significant. through the same table, it was found that the value of (a) amounted to (0,330), and this value represents organizational excellence, provided that the value of the creativity strategy is equal to zero, while the value of (b) is (0,510) and an indication that any change in the dimension of the innovation strategy, even if an amount of (1) will lead to a change of (0.510) in achieving organizational excellence, while the value of (r2 = 0.457) is an indication that the value of (45.7%) of the variance in achieving organizational y = α + βx american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 44 www.americanjournal.org excellence is a variation explained by the action of the innovation strategy that the linear model entered, while the remainder represented a variance that the creativity strategy could not yet explain; this is due to factors and influences that did not participate in the model or because of unspecified random errors, and in light of the results obtained, we accept the first sub-hypothesis of the impact hypotheses, which states (there is a positive influence relationship with a moral significance for the creativity strategy in achieving organizational excellence). 2we note that the tabular value (f) is higher than its calculated value between the dimension of the initiative strategy and the dependent variable organizational excellence, which amounted to (12,543), and these results indicate that there is an effect of the initiative strategy in achieving organizational excellence, and an indication that the regression model is significant. it was found that the value of (a) amounted to (0,300), and this value represents organizational excellence, a condition if the value of the creativity strategy is equal to zero, while the value of (b) equals (0.522) and an indication that any change in the dimension of the initiative strategy will lead to a change in achieving excellence. organizational excellence, while the value of (r2 = 0.408) is an indication that the value of (40.8%) of the variance in organizational excellence is explained by the action of the initiative strategy dimension that entered the linear model, while the remaining percentage represents a variance that the dimension could not explain; this is due to factors that did not contribute to the model, and in light of the results obtained, we accept the second sub-hypothesis of the impact hypotheses, which states (there is a positive influence relationship with a moral significance for the initiative strategy in achieving organizational excellence). 3it is clear that the tabular value of (f) is higher than its calculated value between the offensive rivalru strategy and the dependent variable, which amounted to (9,006),these results indicate that there is an effect of the third and final dimension of the independent variable on the dependent variable and an indication that the regression model is significant. 4it was found that the value of (a) amounted to (0.246), and this value represents organizational excellence, provided that the value of the creativity strategy is equal to zero, while the value of (b) equals (0.447) and an indication that any change in the dimension of the offensive strategy of competition will lead to a change in the achievement of organizational excellence, while the value of (r2 = 0.428) is an indication that the value of (42.8%) of the difference in organizational excellence is an interpreted variance, due to an offensive rivalry strategy, the competition that entered the linear model, while the remaining percentage represents a variance dimension could not explain it; this is due to factors that are not within the model, and in light of the results obtained, we accept the third sub-hypothesis of the impact hypotheses, which states (there is a positive influence relationship with a morale significance for an offensive rivalry strategy in achieving organizational excellence). 5we note that the tabular value (f) is higher than its calculated value between the independent variable and the dependent variable, which amounted to (16,467), and these results indicate that there is an effect of the entrepreneurial strategies variable on the dependent variable, and an indication that the regression model is significant. it was found that the value of (a) amounted to (0.397), and this value represents organizational excellence, provided that the value of the entrepreneurial strategies is equal to zero, while the value of (b) equals (0.670) and an indication that any change in the independent variable will lead to a change in achieving excellence. the organizational excellence, while the value of (r2 = 0.606), is an indication that the value of (60.6%) of the difference in organizational excellence is an explained variation, due to the entrepreneurial strategies variable that entered the linear model, while the remaining percentage represents a variance that the dimension could not explain; this is due to factors not within the model, and in light of american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 45 www.americanjournal.org the results obtained, we accept the second main hypothesis, which states (there is a significant significant influence relationship between the entrepreneurial strategies and the achievement of organizational excellence). the fourth topic / conclusions and recommendations first: the conclusions this research presents the most important conclusions reached by the research, as follows: 1it became clear through the statistical description that there is an interest on the part of the researched university in the dimension of creativity strategy, due to the effective role that this strategy plays in effectively employing organizational processes, which contributes to its technological and scientific progress. 2there is interest in the university regarding the dimension of the initiative strategy, as the university desires to speed up the initiative in all its procedures, as well as the initiative in community service, which makes the university among the pioneering universities. 3it was clear from the statistical description that there is a good level agreement on the offensive strategy of competition, and this is evidence of the interest of the university and senior management in this strategy, due to competition between other universities, and the dynamic environmental changes. 4there is a role for entrepreneurial strategies with their dimensions in achieving organizational excellence in a varying manner in relation to the standards within the surveyed sample, and we conclude that the sample surveyed has absolute confidence that the application of entrepreneurial strategies allows the exploitation of all critical opportunities using effective strategic planning that depends on a common organizational vision and the adequacy of available resources, and that by increasing the orientation towards creativity strategy, and facilitating the processes of preparing for initiative and offensive rivalry . 5the university has a strategic vision that helps it achieve its future aspirations in the field of improving the work environment and human resources, and building its future leaders who contribute to making it an organizationally distinct university. second: recommendations 1attention should be paid to the creativity strategy, as it is one of the essential strategies that support the university in achieving success and leadership, by promoting a culture of creativity and excellence and motivating its human resources towards creative behaviors. 2the university’s senior management should move towards leadership and speed in the initiative strategy, by paying attention to creativity and proactiveness, as they contribute to accessing many educational opportunities before other universities. 3theoretical and field reality dictates that the university adopt the concept of an offensive rivalry strategy, due to the intense competition conditions that the university is experiencing in an increasingly complex environment, and in a manner that enhances its ability to deal with expected developments and make appropriate changes before competitors. 4considering the university is organizationally distinct, it is imperative for the senior management to make deliberate efforts to engage employees with competencies and leadership skills in order to support the vision of quality and service delivery. 5the necessity of the university’s interest in developing its leadership orientation as a strategic element that aims to achieve organizational excellence, taking into account the environment and organizational culture to solve its problems on the basis of innovation and proactive and sustainable measures. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 46 www.americanjournal.org list of the sources first: arabic sources 1al-sultani, saadia hayef, and alwan, bushra (2018), “the entrepreneurship strategy and its implications for the philosophical foundations of organizational effectiveness: an analytical survey of the opinions of a sample of doctors at al-hilla teaching hospital, university of karbala, vol. 16, vol. 3 iraq 2al-taweel, akram ahmed and ismail, ragheed ibrahim, (2014), “the relationship between types of technical creativity and dimensions of competitive advantage: a field study in a selected group of industrial companies in nineveh governorate”, working paper. 3-al-thaqafi, fahd hamid (2019). the reality of the application of the contents of knowledge management in the management of taif education and its relationship institutional excellence from the point of view of the leaders working in it. 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(20), no. (2), pp 198-209. 2. alhalaseh, r. h., & ayoub, z. (2021). strategic flexibility mediating the impact of entrepreneurial orientation on organizational excellence. international review of management and marketing, 11(6), 21. 3. alipour , farhad & khairuddin idris and roohangiz karimi ,(2013), "intrapreneurship in learning organizations: moderating role of organizational factors" , journal of american science, p 141150 http://www.americanscience.org. 4. al-ma’aitah, n., al-haraisa, y., & al-tarawneh, k. (2020). staffing strategy as a way to achieve organizational excellence: insights from jordan. test engineering and management, 83(marchapril), 6929-6939. 5. al-weshah, g. a. (2019). organisational excellence as a marketing tool: greater amman municipality as a case study. international journal of business performance management, 20(2), 110-129. 6. durrah, o., khdour, n., & al-abbadi, s. (2014). the impact of the implementation of organizational excellence policies on the contextual performance: a case study in the cardiovascular surgery hospital. international business research, 7(9), 17. http://www.americanscience.org/ american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 47 www.americanjournal.org 7. farahmand . dr. nasser fegh-hi, dr. houshang tagizadeh,(2011), mohammad kheirandish, " a strategy formulation model: a model based on the corporate entrepreneurship in industrial firms of iran", australian journal of basic and applied sciences, 5(12): 1221-1230, 2011 8. g. t. lumpkin and g. g. dess, (1996)“clarifying the entrepreneurial orientation construct and linking it to performance,” academy of management review, vol. 21, no. 1, , pp. 135-172. 9. hijjawi, g. (2021). the effeect of entrepreneurship on organizational excellence: the mediating role of visionary leadership. management science letters, 11(1), 57-66. 10. keuper, frank & brosel, gerrit & hans rene, (2006), " entrepreneurship strategies to overcome barriers to market entrya system theory and cybernetics perspective", int. j. technology management,vol.33, no.4, pp,389405. 11. kuratko, donald f.; hodgetts, richard m, (2001), "entrepreneurship a contemporary approach", (5th ed.).harcourt college publishers. usa. 12. mohammed al-adaileh, r. (2018). it factors influencing organizational excellence as mediated by the level of it-business alignment: a study of the mining sector in jordan., 48(1), 669-697. 13. osemudiamen, i. d., adedugba, a., akinriola, o. o., & ekperiwere, m. c. (2022). the mediating effect of organisational excellence on entrepreneurial orientation and performance in small and meddium sized enterprises in lagos metropolises. fuoye journal of management, innovation and entrepreneurship, 1(1). 14. osman, mohd hassan & ahmad, fauziah sheik & rashid, muhammad amir & hussain, ghulam, (2015), " assimilating entrepreneurial orientation &market orientation dimensions in the context of women-owned small & medium sized business ", journal of business management , vol.5, no.14 15. osunmuyiwa, olufolahan & ahlborg, helene, (2019) "inclusiveness by design? reviewing sustainable electricity access and entrepreneurship from a gender perspective", journal energy research & social science, vol .53, pp. 145-158. american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 54 www.americanjournal.org foreign experience in financing the agrarian sphere and development of scientific supply babadjanov abdirashid musayevich phd in economics, senior scientific researcher. associate professor of the department of accounting and auditing. national research university “tiiame”. 39, kori niyoziy street, mirzo ulugbek district, tashkent, 100012, the republic of uzbekistan. е-mail: a.babadjanov@tiiame.uz scopus author id: 7611319; orcid: 0000-0003-0164-0475 a b s t r a c t k e y w o r d s the article uses the experience of the countries of the commonwealth of foreign countries and independent states, which have been tested for many years, from research that corresponds to our republic. it can create an opportunity to increase the scientific supply of the agrarian sphere of the country to a high level and to develop agriculture steadily. the agrarian sphere, along with the transfer of scientific developments to a commercial basis and the involvement of private investments in the financing of agrarian science, provides an opportunity to develop science in this direction. it is important that the agrarian sphere carries out research in conjunction with scientists and scientific staff of various scientific fields, pays special attention to the financing of large scientific projects prepared by the state. experience of countries of the commonwealth of foreign countries and independent states is one of the most important tasks of our country in financing agricultural research and developing agrarian science. agrarian sphere, scientific supply, financing, innovation, development, improvement, development of science and technology, economy. introduction in the conditions of modernization of the agrarian sector in the republic, the experience of foreign countries in maintaining a decent standard of living and conducting socially oriented activities for the population on the basis of protection of the agricultural network from the negative consequences of climate change is of particular importance.first of all, it should be noted that, in developed countries, technology based on the achievements of science and technology in raising the economy of the country is recognized as a priority direction, and the higher the status of science, the trust is given to it as the national intellectual wealth of the country. in the process of agrarian reform, when the activities of organizations of agroindustrial complexes are based on the principles of market management, agricultural producers are in great need of creating american journal of business management, economics and banking volume 11 april, 2023 p a g e | 55 www.americanjournal.org conditions that ensure a constant and sustainable process of reproduction of agricultural products, requiring appropriate organizational and economic existence. the problem of finding effective forms of financial support for the agrarian agrarian sphere of the economy requires an analysis of the world experience and an assessment of the possibilities for its adaptation. at the same time, the peculiarities of public policy in the field of small business in the regions are not sufficiently studied in scientific circles, do not have a broad historical, economic and political basis, which negatively affects the modern development process of small business. without taking into account the mistakes of the past, without studying or analyzing them, it is impossible to achieve effective results in the process of ensuring sustainable growth of the agrarian economy of the country. and the impact of agrarian science on agriculture is determined not only by the results achieved at the end of scientific research, but also by the results of scientific and technical activities, the introduction into practice of intellektual property and technology in the field of science. the demand for scientific developments should be approached not in the interests of scientific institutions and the general development of science, but in the interests of improving the quality of scientific supply in agrarian production and its branches, the user of scientific product results. the main goal of the economic reforms carried out in the agrarian sector is to bring the development of the sector to a qualitatively new level, and on this basis, the country's increase in the production of cotton, grain and other types of food products, and on this basis, raising the standard of living of the population is primarily associated with raising the scientific supply of the industry to a new level. analysis and discussion of the results the effective use of experiments in the world economy while thinking about the experiences of foreign countries in agrarian research, first of all, the development of international economic relations, as a result of the growth of population incomes in many world countries, and the experience of the countries of the commonwealth of independent states in the development of agrarian science can also be prioritized. the main attention was paid to the creative study of the experiences of the united states of america, which is in the first place in terms of the volume of gross domestic product produced today on a global scale, on the issues of agricultural development, financing of its scientific supply and material stimulation of research work. according to the american experience, investments in agricultural research are 1.2 percent of the total amount of funds spent on research. in the financing of research by the state, special attention is paid to the financing of large scientific projects jointly prepared by various science sectors. according to the country's statistical data for 2015, the us data for 2015 are given, the cost of financing research and experimental design work in gross domestic product in the republic in 2015 amounted to 133 million us dollars. at the initial stage of innovation activity, the implementation of research and design work in uzbekistan from the account of public funds is 59 percent. in the us, private companies are the main source of funding for the costs of research and design work, while public funding is only 23 per cent. on the composition and volume of the costs of research and experimental and design work, it is estimated that the indicators of developed countries differ significantly, that is, in the us, 559 billion. dollars, 144.3 billion in japan. the dollar. 16.2 billion in sweden. dollars. 97,1 billion in germany. the dollar. and the republic of uzbekistan is worth 0.1 billion. by organizing a dollor, we can see that the cost of financing research and experimental design work is ten times higher. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 56 www.americanjournal.org due to the insufficient improvement of the organizational and economic mechanism for transferring research activities to self-financing and organizing self-financing in our country, this system does not give the expected results. due to the low remuneration of researchers, teaching staff of scientific institutions and the same pricing for research in various areas, problems arise in the implementation of research results, which leads to low efficiency of the use of funds allocated for research. all this necessitates the transfer of research work into market relations, giving the completed scientific results the status of a marketable product and setting the right price for it. this, in turn, will improve the quality of research, increase the responsibility of researchers and ensure the implementation of scientific results in a short time. to date, the salaries of scientists, researchers, professors and teachers in scientific institutions, according to our analysis, are as follows: an increase in the average salary of university teachers by 67 times compared to the current period; the average salary of researchers conducting research in research institutes increases 7-8 times compared to the current period; it is necessary to organize an increase in the average salary of scientists and professors in scientific institutions, calculated for their scientific research and creativity to 11-12 times compared to the current period. compared to developed countries, this indicator is quite a growth. in our opinion, the creation of scientific developments, manuals, scientific articles as a result of giving conditions to each of our researchers and scientists, who are engaged in scientific research, will serve science in the future. the active role of the state in the field of innovation is explained by the high place of new technologies in ensuring the competitiveness and national security of the country on a global scale. the current state of socio-economic development of the united states is characterized by the introduction of scientific, technical and innovative innovations in almost all aspects of the economic sphere. based on the experience of foreign countries and the experience of the commonwealth of independent states in the financing of the agrarian sector, it is necessary to put agrarian science on a commercial basis, to formulate laws that make it an integral part of the agrarian market. this, in turn, requires the improvement of cooperation of scientific institutions with the system departments of practice and onsite agrarian sector. the yield that agrarian science gives to agricultural producers should be the product that is delivered and completed to the standard. each author should clearly represent the economic effect of the introduction of his scientific development into practice. this is the fundamental difference between the new requirement for agrarian science and the previous ones. since the commonwealth of foreign countries and independent states is a priority sphere of agriculture, a lot of scientific and technical cooperation has been carried out in this regard. in particular, it is desirable to study the advanced experience of the states of the usa, france, china, israel, germany and russia in agrarian science and introduce from them aspects corresponding to the conditions of uzbekistan. organizational and methodological improvement of the scientific potential of the agrarian sphere is required, as well as the development of science and technology in the new century, increasing the effectiveness of scientific activity. therefore, it will be necessary to develop a new concept of the functioning of agrarian science, and this concept must meet the demand for a new activity in the field of agrarian science. in our opinion, this concept should form the basis of the printsipial novel of the relationship between agrarian science and agricultural production, taking into account that the state is the chief reformer. it american journal of business management, economics and banking volume 11 april, 2023 p a g e | 57 www.americanjournal.org will be necessary to carry out the introduction of scientific works into practice mainly through a program established in the field, timely coordination of scientific research. such programmes should include specific measures for the implementation of the completed scientific product into practice, including its financing and control. it is necessary to create a system that interacts with the production of agrarian science, ensuring the effective introduction of ready-made scientific works into production. judging by the results of scientific research conducted in the regions, not enough attention is paid to such integration. it would be advisable to create a scientific and innovative methodological council in the republic with the participation of the ministry of agriculture of the republic of uzbekistan, the ministry of water resources of the republic of uzbekistan, the national center for agricultural knowledge and innovation, the association of farms and other ministries and departments related to agriculture. it is desirable that the methodological council be attached to the national center for agricultural knowledge and innovation. the proposed special council is necessary for consultations on innovative development among agricultural enterprises, agricultural workers, improving the knowledge of employees in this area and work on the management of the innovation process. scientific work should be carried out on such problems, which are extremely relevant today in agrarian science: improvement of the normative and legal base of land relations, creation and establishment of integrated structures, improvement of economic relations, improvement of the effectiveness of the commodity intervention process, creation of balanced economic conditions for the effective functioning of economic entities and improvement of relations in the. the tasks of accelerating the implementation of scientific and technical achievements in the field should be prepared for the training of scientific personnel and their ability to conduct research in the conditions of market relations. they should not only conduct research, but also be able to foresee commercial potential and have the ability to market new scientific works. these are as follows: the organization of a school of highly qualified young researchers in the leading research institutes on the main directions of science, as well as the revival of the work of the graduate school and doctoral studies; in the development of the agrarian sector on a scientific basis, it is important to establish a better cooperation with the higher education institutions of the commonwealth of foreign countries and independent states. for this purpose, it is desirable to improve the qualification of scientific personnel, to exchange experience, to conduct joint research on mutual agreement, to draw up memoranda and to carry out long-term programs. in particular, it is important to restore relations with the countries of the commonwealth of independent states. because, on the one hand, here tilni the need to know, problems such as low cost of transportation and communication are eliminated. on the second hand, the changes taking place in the agrarian sector of these countries have many advantages with some degree of similarity and ease with the introduction of the scientific and technical achievements in them in our country. third, to set off the training of scientific personnel abroad in the most necessary areas of science. particular attention should be paid to the research work carried out in the field of biotechnology, hereditary modification of cells. it is known that in the rapidly developing world agricultural market today, the demand for the preparation of food products on the basis of agricultural raw materials is increasing, the genetic characteristic of which is changing. on the basis of the technology of gennoengineering, large research works are being carried out in developed countries on the cultivation of environmentally friendly food products. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 58 www.americanjournal.org for the development of research works that form the basis of the development of the agricultural industry and the improvement of scientific support for the industry, it is necessary: further development of the scientific potential of the country's agriculture, expansion of the scale of fundamental and applied research; concentration of all the possibilities and potential of agricultural science on solving the main problems of the development of science and technology of the agro-industrial complex; increasing soil fertility, preserving crop varieties and livestock gene pool and adapting them to existing conditions; creation of new technologies designed for the cultivation of products and their processing; creation of new methods of a new organizational and economic mechanism of management; scientific substantiation of ways to solve rural social problems; ensuring environmental safety, creating a scientifically based system of agricultural production; formation of a new scientific and technical product, taking into account the creation of a developed innovation system and the stimulation of the activities of subjects of innovation and the organization of their activities in the commodity market. orientation to the development of innovative activities in improving the scientific support of the agricultural sector fundamental and important applied research form the basis for the development of science and technology in the economy of the agro-industrial complex. further sustainable development of the agricultural sector will be ensured through the development of technologies that require a large scientific potential, large amounts of financial, intellectual and material resources, improved forms of management associated with the production of fundamental and applied research. therefore, in financing the results of scientific research in this area and the introduction of relevant aspects of foreign experience in our country, it is also important to involve entities related to agriculture that carry out activities in various directions. conclusion as a result of the research work carried out, the following main scientific conclusions were developed: to create the same organizational and economic conditions for carrying out research on the agrarian sector in the regions and to use the potential of these territories to a higher level, to conduct research and to work with a clear program that covers not only the problems, for the sphere, it is possible to abandon the experience of training specialists in narrow specialties and bring such directions as the training of multifaceted specialists due to rural social life. attention should be paid to the scientific research and as a result of the research, the following scientific proposal was developed: three directions that form the basis of the scientific supply of agriculture: training of personnel for the agricultural network, conducting research in the network and introducing its results into practice, interrelated with each other and the introduction of such a system at the; in the financing of scientific provision, the introduction of scientific research results into practice should be considered equally and a great importance should be attached to the introduction of research results; the organization of scientific research and experiments, as well as the provision of them with the necessary land areas, necessary equipment and financial resources; the ability to test the results of all research; in the scientific provision of the agrarian sector, the productivity of cocktails should be a main issue, priority should be given to economic issues. in our opinion, it plays an important role in the development of strategic directions of increasing the effectiveness of research work related to the agrarian sphere in the republic. based on the foregoing, as a conclusion, and as a result of the study, the following recommendation can be put forward: the study of the peculiarities of innovative activity in the agrarian sector will allow american journal of business management, economics and banking volume 11 april, 2023 p a g e | 59 www.americanjournal.org to establish innovative processes in agriculture, to develop a classification of forms and methods of incentives, which can be carried out on the basis of the impact of. references 1. romanenko g. (2007) advanced scientific developments agricultural production. // aic: economics, management, moscow; no. 3. – pp. 3-6. 2. kuznetsova a. (2009) problems of reproduction of qualified personnel potential of the agricultural sector. international agricultural journal. moscow; no. 4. – pp. 21-24. 3. dolgushkin n. (2009) personnel potential as a factor in the innovative development of the agroindustrial complex. international agricultural. journal. – moscow. no. 5. – pp. 10-11. 4. sandu i.s. (2009) activation of innovation in the agricultural sector. // aic: economics, management. moscow; №10. – pp. 73-79. 5. grigoryev l. (2009) investment process: accumulated problems and interests. // issues of economics, moscow: no. 4. 6. babadjanov a.m. (2010) the main directions of the transition of agriculture in uzbekistan are the scientific basis. g: “economics and finance”. moscow. no. 11-12. – pp. 48-49. 7. ibragimov a.k., tursunov u. (2020) peculiarities of the accounting balance in modern management system /international journal of management, it & engineering vol. 10 issue 02, pp. 45-57. 8. babadjanov abdirashid musaevich. (2020) investment in the water supply and economic problems: solutions. journal of scientific research reports. india. 26(6): pp. 100-109. american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 101 www.americanjournal.org the impact of digital transformation on the quality of financial reports a field study in a sample of banks listed in the iraqi stock exchange mustafa saeed hasan college of administration and economics, university of samarra, samarra, iraq. email: mustafasaedr@gmail.com a b s t r a c t k e y w o r d s the study aims to recognize the concept and objectives of digital transformation and the quality of financial reports and measurement models with qualitative characteristics of accounting information, to achieve the study's objective, the study dealt with a questionnaire form designed to survey accountants, department heads, account managers and banking executives. this form was distributed to banks listed on the iraqi stock exchange, and its number was swallowed. (102) a valid form for statistical analysis, the researcher has used statistical methods to analyze the results and test hypotheses: alpha cronbach persistent coefficient, pearson binding coefficient, metrics for descriptive statistics and simple linear regression analysis and the study reached a set of conclusions, the most important of which was the inverse correlation between digital transformation and the quality of the financial report. whenever the economic unit moves towards digital transformation whenever this results in the adequacy and reliability of accounting information and thus the benefit to its users, the study also found a moral impact of digital transformation on the quality of financial reports (appropriate and genuine representation). digital transformation, quality of financial reports, relevance, honest representation. introduction the digital capacity of the business is fundamental in the competitive market right now. digital technologies are changing and evolving rapidly, creating an increase in competition and the need for economic units to innovate quickly and accurately. it was not dangerous for economic units to ignore the importance of those digital technologies. digital technology refers to a range and models of various smart and innovative technologies in business environments, including (iot), (big data), (data analytics), (artificial intelligence) and (cloud computing) (ritter & pedersen, 2020:32). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 102 www.americanjournal.org technology in today's new world is not an option, but a basic business strategy that must be interconnected in every part of economic unity. digital transformation can provide better collaboration within and between economic units, more personalized ways of customer engagement, higher employee innovation and productivity, and more accurate insights from data, all helping the company grow and give it a better chance of prosperity. digital accounting refers to the creation, representation, and transmission of financial information in electronic form rather than the use of traditional paper processes, whereby all accounting transactions take place in an electronic environment, and technology advances have enhanced accountants' ability to interpret and report data faster, more efficiently and more effectively than ever before (troshani et al.2019: 343). the quality of financial reports refers to the most complete, impartial, and error-free reports and provides more useful predictive or confirmatory information about the underlying economic status of economic units, events and performance (shuraki et al. ،2021 ). providing high quality financial reporting information is important because it will positively affect capital suppliers and other stakeholders in making or making decisions. these include the decision to invest, credit and allocate similar resources that enhance the overall efficiency of the market. the quality of the financial reports relates to the quality of the information contained in the financial report reports, including notes to financial statements, where high-quality reports provide appropriate and useful decision-making information s economic activities during the reporting period as well as the financial situation of the unit at the end of the reporting period. the quality of the reported results or the quality of the profits relates to profits and cash resulting from the unit's actual economic activities and the resulting financial situation. (ouda & klischewski, 2019). research problem: the problem with research is to answer the following questions: 1. question 1: is there a correlation between digital transformation and the quality of financial reports, namely, the first qualitative basic characteristic of accounting information, which is appropriate and its subsidiary characteristics. 2. question 1: is there a correlation between digital transformation and the quality of financial reports of the second qualitative feature of accounting information, namely honest representation, and its subspecies. research objectives: this study sought to achieve the following objectives: 1demonstrate the concept of digital transformation and its characteristics, the mechanisms of this transformation and its importance. 2clarification of the concept of quality of financial reports and models for measuring financial reports 3identification of qualitative characteristics of accounting information 4. the main objective of this research is to examine the relationship between digital transformation and the quality of financial reporting. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 103 www.americanjournal.org research hypothesis: 1. main hypothesis: there is a statistically significant relationship between digital transformation and the quality of financial reporting. the following sub-hypotheses are divided from the main hypothesis: 1the first sub-hypothesis: there is a statistically significant effect of digital transformation in the appropriateness of accounting information. 2sub-hypothesis ii: there is a statistically significant impact of digital transformation in the representation and truthfulness of accounting information. the importance of research the importance of research is due to the important role that digital transformation plays in the quality of financial reports. financial reporting is one of the main sources of external and internal users' engagement in making various investment, financing and other decisions. it is also important to the novelty of the subject. this research is particularly important to transform traditional accounting systems into electronic in all respects, and to the vital and important role of information that contributes to decision-making. search limits: 1. spatial boundaries: the study community represents the iraqi stock exchange, while the study sample represents 10 banks, where 12 forms were distributed to each bank. the study sample is 120 forms. 2. time limits: the study's time limits were limited to the financial period 2009-2013. research methodology this study is based on two scientific research approaches: 1descriptive curriculum: this curriculum relates to the theoretical aspect through scientific spheres and literature related to the subject of the study from books, letters, periodicals, research, scientific conferences, and scientific articles from websites whether arab or foreign. 2applied curriculum: using a questionnaire form of digital transformation and quality of financial reports, which was designed and presented to a group of arbitrators to express their opinion on the appropriateness of the answer scale, and the fairness of the form after taking all the comments made by the arbitrators and becoming in its final form. measuring research variables: the study covered two main variables: 1independent variable: digital transformation, measured through the questionnaire format distributed to sample individuals and the study community (i.e. accountants, heads of departments, account managers and executives working in iraqi banks. in agreement with several studies (mourning, 2022), (rashwan and qasim, 2020) and (simon, 2019). 2the subordinate variable: the quality of the financial report, as measured by the qualitative characteristics of the accounting information of relevance and honest representation and its subsidiary characteristics, through the method of questionnaire form distributed to sample individuals and the study community (i.e. accountants, heads of departments, account managers and american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 104 www.americanjournal.org executives of iraqi banks. in agreement with several studies (hernando, et, al., 2020) and (meragain et, al., 2021). figure 1: research plan research plan in view of the importance of the study and in order to achieve the problems and objectives of the study, and considering the approach taken in the study to create a scientific framework through theoretical and practical study, the study was divided into three axes, as follows: first, the theoretical framework for research second: the conceptual framework for digital transformation and its impact on the quality of financial reporting third: field study conclusions and recommendations references and sources previous studies: first: arabic studies study (haddad, 2022) entitled: the impact of the application of digital transformation in audit facilities on the quality of the audit process, field study on the professional environment in egypt. the study aimed to test the extent to which the digital transition to audit work affected the quality of the audit process, and addressed the digital transformation mechanisms used (ai, big data, robots, cloud computing), a questionnaire form was distributed to auditors and accountants in audit offices and the data was analysed using statistical software (spss) found that there was a statistically significant impact of the use of digital transformation techniques in reference performance efficiency and audit quality, and recommended that the audit profession should keep pace with technological developments. study (sheikh, 2022) the impact of the application of cloud computing technology on improving the quality of financial reporting and its reflection on the value of the company. the study aimed at studying and analyzing cloud computing technology as a digital information technology mechanism and identifying the underpinnings of this technology and its role in improving the quality of financial reporting information. the study dealt with a sample of 150 individuals and quality of financial reports digital transformation appropriate. honest representation. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 105 www.americanjournal.org was analysed using the spss statistical program, the study found an impact of the application of cloud computing technology to financial reporting by providing appropriate and reliable information on economic transactions. study (rashwan and qasim, 2020) entitled the role of digital transformation in increasing the efficiency of banks' performance and attracting investments. the study examined a sample of banks operating in the gaza strip and analyzed data using the spss statistical program. the study found a role for digital transformation in increasing the efficiency of banks' performance and attracting investments. second: foreign studies: study (simon, 2019) entitled the impact of digital transformation of accounting information on the business organization of some selected companies in edo state, nigeria. the study aimed to learn about the impact of the digital transformation of accounting information on the entrepreneurship of selected companies in edo state in nigeria and the relationship between information technologies and the accounting system was examined by investigating the impact of big data on the accounting and artificial intelligence system on the processing of accounting information, a questionnaire form was used to examine the relationship using the spss statistical program and the study found that there was no significant impact of big data and artificial intelligence on the accounting and accounting information processing system, the study recommended that the use of big data and artificial intelligence should be reduced in order to reduce operating costs. study (hernando,et,al., 2020) entitled: the use of information technology in improving the quality of financial report in micro, small and medium enterprises using information technology to improve the quality of smes' financial reports. the study aimed to research the use of it in improving the quality of financial reports. the study examined a sample of 98 smes. the study found that most businessmen in smes need a computerized system to help record transactions to create high-quality financial reports. the results have also shown that a number of companies have used technology to improve the quality of financial reporting, where information technology is part of the digital transformation machinery. study (meragain et al., 2021) entitled: the impact of digital transformation on the accounting information system: evidence from algerian companies impact of digital transformation on the accounting information system: a guide from algerian companies the study aimed to demonstrate the conceptual and practical framework for digital transformation and its impact on the accounting information system and focus on digital transformation requirements such as digital strategy, human component blameless knowledge, impacts and constraints to the digitization of accounting information systems the study dealt with a sample of 237 individuals in 120 companies by distributing questionnaire forms to them. the study found poor awareness of the importance of digital transformation and a weak effort to develop accounting information systems in line with digital transformation requirements. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 106 www.americanjournal.org digital transformation the world of digital transformation and its events affecting economic activities and all areas of accounting and auditing in particular are the 46th session of the world economic forum. economic forum the world, an independent international non-profit organization charged with developing the world by promoting policies, actions, scientific aspects, and all leaders gathered to shape the global, regional, and economic agenda (in switzerland in 2016 to discuss the fourth industrial revolution fourth on digital transformation and its development worldwide. today's world is moving rapidly towards digital transformation, making it essential for several professional areas, including accounting and auditing. digital transformation relates to the shift to digital economic units, which use technology for the continuous development of all aspects of their business model (what they offer, how they interact with customers, how they operate) and the main purpose of any digital transformation is to improve current processes. digital transformation is defined as the profound transformation of entrepreneurial activities, processes, organizational competencies, and models to identify strategic priorities, changes and opportunities offered by a combination of digital technologies and their accelerated impact on society, in order to represent and present future changes (al-marj and al-rashidi, 2022:6). using a range of digital technologies, innovations and new business models in various fields to enable continuous improvements in various activities and tasks of economic units. it is also defined as the process of providing digital information, business processes and product offerings through information technology and internet-based applications. (amin, 2022:55) the importance of digital transformation at the level of economic units digital transformation is of tangible importance at the level of economic units and various stakeholders and through the following: (amin, 2022:63). 1providing innovative services based on digital technologies which contribute to creating more opportunities. 2improvements in operational efficiency. 3improve the quality of processes and services provided by simplifying procedures. 4continuity and speed of data and information flow. 5responding quickly to customers' ever-changing needs and desires. 6reduce human errors through the use of artificial intelligence and both technologies. 7reduction in transaction costs 8increased level of transparency and information security. 9improved internal and external communication mechanisms digital transformation mechanisms: i/ big data analysis it is one of the most important digital transformation tools defined as a dataset that exceeds the capacity of regular database software to be compiled, stored, managed and analyzed. ii/ artificial intelligence ai artificial intelligence (ai) is defined as the technological means that can be used to perform human tasks that need the human mind such as education and problem solving. it can also be defined as the american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 107 www.americanjournal.org ability of allalts and computers to perform certain tasks that mimic human functions and need human intelligence, such as the ability to think and learn from experiences. ai aims to reach systems that have ii and operate in the same way as humans by relying on education and understanding to provide their users with different services with high accuracy and speed. (al-hadad, 2022: 96-98). cloud computing: it is a type of computer software that provides all data and applications to users as services provided via the internet and allows the storage of data and software on the server available on the computer. the use of cloud-based accounting software helps accountants access all kinds of information on the internet to serve customers anytime, anywhere. robats they are programs that use business rules and a series of steps to complete the performance of a range of processes, activities, transactions, and tasks to obtain a result or service and are a simple programming tool that requires great computer knowledge and can therefore be easily used to automate manual functions based on rules faster and less expensive than other technological means. digital transformation characteristics: 1to rely heavily on intangible assets, which include intellectual property and the development and use of software and algorithms, which analyze a large amount of business data on platforms that play a key role in the production or provision of services via the internet. internet, as well as creative content that plays. 2widespread access without physical presence, where companies can use the internet and its platforms, establish cross-border relations with long distances with customers, without the need for a permanent establishment in other countries engaging clients and users in data value creation. digital platform companies are used to interact with their customers, by analyzing customer behaviour and increasing their revenues such as reselling data and placing customer ads on platforms for fees. in addition, value creation occurs through the internet of things, customers, virtual currencies and the participatory economy. companies that dominate digital businesses are often platforms that enable both sides to interact, can be eye-catching and buyers of traditional goods or services, in which case they are activists who benefit from the internet to reduce transaction costs and search, and can also connect advertisers and consumers and provide consumers with free services. the greater the size or number of users, the greater the value of the internet impact, and if this is important for many companies, the more important it is in the digital economy, due to two reasons: first, digital platforms often have large fixed costs and low marginal costs, and the second reason, is that the benefit of each side is increasing by magnitude or by increasing the number of people on the other side. switching from paper management to digital, electronic or paperless management, as a new mechanism for registration, storage, retrieval and transmission of information, facilitating decisionmaking process and increasing its speed. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 108 www.americanjournal.org digital companies such as e-commerce, online advertising and cloud computing tend to be monopolized, due to the network's influence, large size, usage constraints and multifaceted systems (al-morshed, 2022: 1503-1504). advantages of applying digital transformation in banking units the application of digital transformation technology brings many and varied advantages to the banking sector, namely, significant cost and effort savings, improved operating efficiency and organization, improved quality, simplified procedures for beneficiaries to access services. the advantages of digital transformation application can be illustrated by the following points improving efficiency and reducing costs and providing new services quickly and flexibly. 1. a paradigm shift in the services provided to clients. 2. changing business models as well as mentalities. 3. leverage contemporary technology to become more alert and adaptable at work and able to predict and plan for the future. 4. provide a plan to increase competitive value, sophisticated task forces and a long-term creative culture. 5. allow faster creativity in order to achieve the desired results and progress towards success. 6. replacing digital processes with traditional ones. through the foregoing, digital transformation can be said to have many diverse advantages not only for customers but also for government institutions, companies and banks, including the fact that it greatly saves cost and effort, improves efficiency and operationalization, improves quality and simplifies procedures for access to services provided to beneficiaries. it also creates opportunities to deliver innovative and creative services away from traditional ways of delivering services. digital transformation also helps government institutions, companies and banks expand, spread more widely and reach the largest segment of customers and the public. (bakri, 2022, 481). quality of financial reports the quality of financial reports can be expressed through the quality of the content of the report, the drafting of the report or the quality of the presentation of the report. there are several entry points for assessing the quality of financial reports, including what depends on the investor protection entrance, which depends on the user's needs, and which depends on the third party, the community, to show the truth. the quality of the financial reports is defined as the degree of accuracy that makes the financial report capable of conveying information on the operations of the economic unit to the users of those reports and, in particular, investors in a way that enables them to estimate expected future cash flows, as well as its ability to make a difference to decision makers (al-harabi, 2021:236). the quality of financial reports focuses on the application of accounting standards to provide quality information. all information is disclosed in a transparent manner and hence the reliability of financial reports when making decisions (al-rashidi, 2012:8). in order to achieve the quality of financial reports, the following must be achieved: 1. quality of the report's drafting: the data included in the report are well described so that the data are clear, understandable, and accurately expressed, requiring clarity. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 109 www.americanjournal.org 2. the quality of the report's content: is the accuracy of the correct data and values and is free of material errors and requires the availability of characteristics (accuracy, completeness, comprehensiveness). 3. quality of report presentation: it is to obtain reports at the appropriate times or to present the information contained in the report in a consistent and homogenous manner so that it does not need further explanation and clarification when used and here requires the availability of characteristics (consistency, consistency, impartiality, timeliness, transparency). (hassan, 2017:16). financial reporting quality indicators there are several indicators to measure the quality of financial reports, including (utility of accounting information, quality of accounting profits, accounting disclosure, accounting qualification, financial analysts' forecasts). the indicator for the utility of accounting information will be focused on being the indicator used to measure the variable of the quality of financial reports. utility of accounting information accounting information is the output of the accounting system in economic units and is of great importance to economic decision-making and must therefore have several characteristics to be relevant to decision-making. many international, professional and local bodies and organizations have been interested in developing entry points and benchmarks that can inform the quality of accounting information, and can be explained in the table below. table 1. role of professional organizations and institutions in determining quality characteristics of accounting information organization name characteristics of information quality for accounting american accounting association this association emphasized the usefulness of accounting information, on the basis of which standards are built to assess the quality of accounting information (appropriate, impartial, reliable, comparable, understandable) . american institute of certified public accountants the institute has identified a set of characteristics that must be available in accounting information, through which its quality can be inferred (consistency, appropriateness, objectivity, reliability, comparability, understandability) . american accounting standards board the board identified fifteen elements to infer the quality of accounting information (reliability, understandability, accuracy, honesty, integration, predictive value, timeliness, comparability, relative significance, neutrality, verifiability) international accounting standards committee this committee has identified characteristics through which accounting information can be quality (appropriate, confidence, comparability, relative relevance) english accounting standards committee this committee has identified several characteristics that can indicate the quality of accounting information (appropriate, understandable, reliable, comparable, and complete) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 110 www.americanjournal.org qualitative characteristics of accounting information the qualitative characteristics of accounting information are a component of the financial accounting intellectual framework and serve as a link between the objectives of financial reporting, recognition, and measurement. these characteristics also make accounting information of great benefit to its users: first: basic characteristics 1. convenience: it is the first feature of accounting information where accounting information is appropriate when it has the ability to influence the economic decisions of its users or has the ability to make a difference in the decisions made by the users of financial reports. in order for accounting subtitles to be appropriate, a set of following sub-characteristics must be available: (amin and others, 2020:160). a. "predictive value: accounting information can have predictive value if used as input by users through procedures used to predict future results. b. confirmation value: the accounting information has a confirmatory value when it provides feedback on a change in previous calendars or confirmation. c. relative importance: accounting information is relative (material) if its poor presentation or deletion affects decision makers. 2. honest representation: the second essential characteristic of accounting information that makes such information useful in the decision-making process. honest representation is that the descriptions and figures contained in the accounting report correspond to what already exists or is up to date. in order for accounting information to be genuinely represented, the following subsidiary characteristics must be provided: a. "completeness: it is intended to provide all the information necessary for honest representation, i.e. not to lose sight of some information to be useful to its users. b. impartiality: it is intended not to be biased in the news and presentation of accounting information, i.e. the objective is neutral without manipulation leading to the receipt of information desirably or undesirably by users. c. “fear of error: the absence of accounting information is intended to delete or misstate the existence of economic events and the absence of errors in the processing of reported accounting information. (abdulhalim and mohammed, 2022: 479-480). second: enhanced characteristics: the qualitative characteristics of enhanced accounting information are as follows: 1. comparability: the comparability of an economic unit's accounting information with other economic units for the same period of time and quality of activity (i.e. similar information) or with the same economic unit by comparing current period results with prior periods. 2. verifiability: this feature helps users of accounting information to verify that the information genuinely reflects various economic phenomena, meaning that different accountants can verify and produce the same results. 3. timeliness: is intended to make accounting information available to its users in a timely manner so that such information can influence their economic decisions and not lose value. 4. understandability: it is intended that accounting information is clearly and accurately classified and presented in accordance with applicable accounting standards. our understanding of information american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 111 www.americanjournal.org is increasingly clearly, accurately and concisely presented and classified to enable its users to understand its meaning. (abdulhalim and mohammed, 2022:480). statistical descriptive analysis introduction: this research was devoted by the researcher to illustrating the society and sample of the study, describing the study tool and measuring variables, testing the truthfulness and consistency of the study tool, and finally the descriptive analysis of the variables, as follows: 1. community and sample study. 2. description of study tool and measurement of variables. 3. demographic analysis of individuals researched. 4. test the honesty and stability of the study tool. 5. descriptive analysis. the explanation for each of the preceding paragraphs is as follows: i/ society and sample study the study community represents the iraqi stock exchange, while the study sample represents 10 banks. 12 forms were distributed to each bank. the study sample was 120 forms. the researcher then distributed 120 survey lists to accountants and managers working in iraqi banks listed on the market. basic properties reinforcement properties المالئمة error free confirmation value relative importance التمثيل الصادق predictive value neutrality completion understandability good timing verifiability comparability american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 112 www.americanjournal.org these lists were distributed through personal interviews. 102 valid questionnaire forms have been recovered and are ready for statistical analysis, with a response rate of 85% which is acceptable for scientific research purposes. table 1: number of survey lists distributed and received from study sample individuals. statement total number of lists distributed 120 number of received lists valid for analysis 102 ratio of lists valid for analysis 85% description of study tool and measurement of variables. a questionnaire form was prepared for the collection of data on the applied aspect of the study, which included two sections: the first concerns demographic information describing the characteristics of the study sample. the second concerns the axes of identification, and consists of 37 phrases to measure study variables spread across three axes: axis i: the independent variable of digital transformation consists of (7) phrases spread over digital transformation. axis ii: the subordinate variable of the quality of financial reports consists of (14) phrase distributed to the two appropriate (7) phrases and honest representation incorporating (7) phrases. theme iii: addresses the impact of digital transformation on the quality of financial reporting and consists of (14) table 2: study variables and phrase numbers in the survey list study variables dimensions no. sequence independent variable: digital transformation digital transformation 7 1 -7 affiliate variable: quality of financial reporting appropriate 7 8 -14 honest representation 7 15 -21 impact of digital transformation on the quality of financial reporting 16 22 -36 total 36 the lekert quinquennial scale has been adopted to reflect the trends of accountants and managers working in thinner banks listed on the thinner market of alkalah financial stock exchange, with its grades between (5 strongly approved, to 1 = strongly disagreed). as shown in the table below: table 3: lakert quinquennial scale for graduation in answer level answer weigh strongly disagreed 1 disagreed 2 neutral 3 ok 4 strongly agreed 5 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 113 www.americanjournal.org demographic analysis of interviewees with regard to the distribution of the sample's vocabulary, it can be shown in the table below: table 4: special distribution of study sample units category count percentage academic less than a bachelor's degree 20 17% bachelor's 81 71% master's degree 11 10,3% ph.d. 2 1.7% qualification assistant accountant 35 26% accountant 70 525% head of section 9 6.7% account manager 10 7.4% executive director 10 7.4% job address less than a year 11 9% of the united nations 32 26% 6-10 44 36% 11 and more 35 29% test the honesty and stability of the study instrument: first: honesty: the researcher reviewed research literature on digital transformation and the quality of financial reports, with the aim of drafting the questionnaire list axes and identifying the most important paragraphs. the list of questionnaires was presented in its preliminary form to the arbitrators, consisting of two main axes. what they saw was amended. the researcher used the quinquennial lectert scale mentioned earlier and tested the veracity and consistency of the questionnaire list after its initial design. as follows: 1. authenticity of the questionnaire: the questionnaire is genuinely intended to measure what it is designed to measure, with a view to ascertaining the actual measurements' ability to measure what they are supposed to measure. the researcher verified the validity of the questionnaire in two ways: a. "apparent honesty: the researcher presented the questionnaire list in its preliminary form to a group of arbitrators and consisted of a number of professors specializing in accounting sciences at the faculty of management and economics of the university of tikrit and samarra, some have referred to the rewording of some paragraphs, while some have pointed to the need to rearrange some paragraphs and others to delete them. the researcher amended the list as indicated by the arbitrators and took all observations. b. self-honesty: alpha cronbach's square root self-honesty is calculated by finding the square root of alpha cronbach's alpha coefficient persistence factor (as shown in the table below) american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 114 www.americanjournal.org second: stability aself-stability: a questionnaire is intended to steadily stabilize the results of the questionnaire and do not change significantly if it is distributed more than once during certain periods of time under similar circumstances. a researcher has verified the stability of the questionnaire list through the alpha kronbach coefficient, as shown in the table below. table 5: fakronbach coefficient for independent variable variable number of phrases alfa kronbach coefficient honesty coefficient digital transformation 16 0.856 0.926 quality of financial reports 20 0.912 0.948 total 36 0.884 0.937 the table above shows that alpha cronbach's value for digital transformation and the quality of financial reports was (0.856, 0.912) respectively, and these values are accepted in the form that reflects reliability and confidence in the study variables, as well as the total value of alpha cronbach (0.884). binternal consistency. the internal consistency of the questionnaire's phrases means the consistency of all paragraphs of the questionnaire with its focus, i.e., the phrase measures what it is designed to measure and does not measure anything else. we have therefore calculated pearson's coefficient between the degree of each phrase of the axis and the overall degree of the axis to which this paragraph belongs. table 6: the internal consistency of the first axis phrases digital transformation no. the first axis: digital transformation phrase pearson factor moral 1 digital transformation ensures accurate presentation of banking units' accounting procedures and policies 0.553 0.000 2 digital transformation contributes to reduced time, effort and cost for banking units 0.581 0.000 3 digital transformation achieves the objectives of banking units efficiently and effectively 0.541 0.000 4 digital transformation provides sufficient information for decision makers and in accordance with their requirements 0.334 0.000 5 digital transformation helps keep information confidential for banking units 0.446 0.000 6 digital transformation increases the speed of work performance of banking units in an easy and streamlined manner 0.570 0.000 7 digital transformation is keen to achieve rapid response and instant messaging 0.436 0.000 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 115 www.americanjournal.org it is clear from the table above that all paragraphs are linked with the first axis, i.e., that its paragraphs are statistically relevant, where the correlation transactions are moral, in all paragraphs of the axis, i.e., there is a moral correlation, from which the first axis paragraphs are considered to be authentic and consistent internally. theme ii: quality of financial reports table 7: shows the internal consistency of the expressions of adequacy of accounting information no. relevancy of accounting information phrase pearson factor moral 1 contributing to more accurate predictions for the future 0.543 0.000 2 provided in a timely manner 0.347 0.000 3 decision-making needs to provide appropriate accounting information 0.654 0.000 4 the accounting information used helps and improves its ability to predict expected results in the future 0.360 0.000 5 contributing to the evaluation of decisions' results 0.654 0.000 6 accounting information through accounting disclosure provides results for past events 0.436 0.000 7 the accounting information lost its value if it did not reach its users in a timely manner 0.698 0.000 table 8: shows the internal consistency of expressions of genuine representation and accounting information no. faithful representation of accounting information phrase pearson factor moral 1 objective presentation of information 0.333 0.000 2 sincerely and safely reflect economic events 0.512 0.000 3 accounting information is free from material errors 0.219 0.000 4 comparison with other economic units 0.481 0.000 5 presented in accordance with their relative importance 0.735 0.000 6 enable to tab and display accounting information clearly and accurately 0.197 0.000 7 all important information is displayed 0.732 0.000 from the table above, it is clear that all paragraphs are linked with the second axis, i.e., that its paragraphs are statistically relevant, where in all paragraphs of the second axis, the correlation transactions are moral, i.e., there is a moral correlation, of which the second axis paragraphs are considered to be authentic and internally consistent. theme iii: impact of digital transformation on the quality of financial reporting american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 116 www.americanjournal.org table 9: the internal consistency of the terms "digital transformation" in the quality of financial reports no. phrase pearson moral 1 digital transformation contributes. in assessing the digital economic unit's ability to provide periodic services, ongoing and immediate reports. senior management affecting (quality of financial reports) 0.765 0.000 2 the use of mechanism. digital transformation helps the internal auditor. in conducting a comprehensive evaluation and preparing periodic reports containing the most important observations, discussing them with the governing council and making recommendations and actions. appropriate corrective to improve the quality of financial reports. 0.567 0.000 3 the use of digital technologies works in. accounting processes, to make financial reports free of (distortion and misrepresentation) 0.785 0.000 4 increases the use of (xbrl), reporting language. expanded commercial, from users' confidence in quality. financial reports 70.69 0.000 5 it supports the use of digital technology, improving the quality of financial reporting, because it has been prepared. in light of the set of legal, regulatory, and professional standards. 0.679 0.000 6 the use of digital technologies completes information in financial reports and presents it in an orderly and adequate manner 0.878 0.000 7 the use of xbrl (expanded trade reporting) language leads to neutrality and impartiality. in the information received. in financial reports 0.497 0.000 8 the application helps. digital transformation mechanisms increase. predictive ability of events. economic for financial reporting users 0.857 0.000 9 the application of transformation mechanisms, digital helps to provide information in a timely manner to make economic decisions. users of financial reports 0.789 0.000 10 digital transformation mechanisms help suitability. decision-making for financial reporting users/ 0.865 0.000 11 digital institutional architecture helps measure the financial and nonfinancial impact of digital transformation and provides digital services that contribute to increasing confidence in financial reporting. 0.749 0.000 12 the application of digital transformation mechanisms helps to clarify the accuracy of the information contained in the financial reports 0.864 0.000 13 digital transformation helps to leverage technology. in forecasting and planning. for the future 0.697 0.000 14 digital channels provide the benefits of communication and response. fast 0.719 0.000 15 enables technologies/digital to make and make decisions on a basis. instant data. 0.813 0.000 16 conversion/digital can be used from providing information, required in time for all, its users 0.847 0.000 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 117 www.americanjournal.org it is clear from the table above that all paragraphs are linked with the third axis, i.e., that its paragraphs are statistically relevant, where the correlation transactions are moral, in all paragraphs of the third axis, i.e., there is a moral correlation, from which the third axis paragraphs are considered to be authentic and internally consistent. statistical analysis of data and hypothesis test results the researcher here presents the results of the statistical analysis of the questionnaire distributed to iraqi banks by presenting descriptive statistics of all study variables, and then testing and presenting the results of the study hypotheses test, through the use of the statistical program (spss) and excel microsoft, so this research will address the following main points: hypothesis test before starting the test of hypothesis, the researcher worked on the natural data distribution test with the adoption of the smirnov-kolmogorov test (wilk-shapiro) for all independent and follow-up study variables. it is known that the data follows the natural distribution if the morale level value of the tests is greater than (0.05). table 10: smirnov-kolmogorov test (wilk-shapiro) variables kolmogorovsmirnov shapirowilk digital transformation 0.25 0.23 quality of financial reports 0.18 0.09 table 11: test results of the first hypothesis: there is a statistically significant effect of digital transformation in the appropriateness of accounting information. r f sig. r square t sig. unstandardized coefficients (b) .680a 40.967 .000b .745 6.114 .000 66.417 the table above shows: 1. the value (r) was (0.680) at an indicative level (0.000) and is less than (1%) i.e. a moral correlation between digital transformation and accounting information suitability. 2. the value (f) is equal to (40.967) and its level of indication (0.000), and this value is less than (0.01), which means that the overall regression model is statistically d. 3. the determination factor (r2) is equal to (0.745) and refers to the percentage measuring the independent variable's ability to explain changes in the dependent variable, where the autonomous variable (digital transformation) can explain changes in the dependent variable (appropriate accounting information) by (0.745). 4. the regression factor signal is positive for the independent variable (digital transformation), which means that the relationship is inverse, i.e. when the digital transformation index rises, the accounting information will be more appropriate for its users. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 118 www.americanjournal.org 5. the indication level of the t-test of the independent variable with the dependent variable is equal to (6.114) and its indicative level (0.000). this ratio is below the indicative level (0.01), which proves that the decline is moral. 6. the value of the regression factor is equal to (66.417), meaning that a change in the independent variable (digital transformation) by one-unit results in a change in the dependent variable level (accounting information fit) by (66.417) units. 7. acceptance of hypothesis: there is a statistically significant impact of digital transformation in the appropriateness of accounting information. table 12: second hypothesis test results : there is a statistically significant effect of digital transformation in the representation and honesty of accounting information. r f sig. r square t sig. unstandardized coefficients (b) .751a 32.648 .000b .6328.372 .000 72.345 the table above shows: 1. the r value was 0. 751) with an indicative level (0.000) which is less than (1%) i.e. a moral correlation between digital transformation and accounting information suitability. 2. the value (f) is equal to (32.648) and its level of indication (0.000), and this value is less than (0.01), which means that the overall regression model is statistically d. 3. the determination factor (r2) is equal to (0.751) and refers to the percentage measuring the independent variable's ability to explain changes in the dependent variable, where the independent variable (digital transformation) can explain changes in the dependent variable (reliability and authenticity of accounting information) by (0.751). 4. the regression factor signal is positive for the independent variable (digital transformation), meaning that the inverse relationship, i.e., when the digital transformation index rises in the economic unit operations, the accounting information will be more reliable and honest representation of its users. 5. the indication level of the t-test of the independent variable with the dependent variable is equal to (8.372) and its indicative level (0.000). this ratio is below the indicative level (0.01), which proves that the decline is moral. 6. the value of the regression factor is equal to (72.345), meaning that a change in the independent variable (digital transformation) by one-unit results in a change in the dependent variable level (genuine representation of accounting information) by (72.345) units. 7. acceptance of hypothesis: there is a statistically significant effect of digital transformation in the representation and honesty of accounting information. 8. acceptance of the main hypothesis: there is a statistically significant impact of digital transformation on the quality of financial reporting. conclusion 1. the trend towards the application of digital transformation is a global trend to which all organizational forms of countries and institutions, whether for profit or not, are oriented. the trend american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 119 www.americanjournal.org towards digitization is a mechanism of restructuring aimed at a qualitative shift in the level of performance. 2. the application of digital transformation in banks refers to the multiple changes in the banking industry made to integrate financial technology solutions in order to automate, improve and digitize operations, as well as increase data security. this process involves many changes that reshape the methods and techniques used in the banking sector. 3. the most important advantages of applying digital transformation have been in reducing costs through the provision of technological infrastructure, which may result in higher total costs in the short term but this will change in the long term as the fulfilment of the customer's wishes and the provision of services that achieve customer satisfaction 4. the results of the study resulted in a reverse correlation and moral impact of digital transformation on the quality of banking units' financial reports. recommendations 1. banking units must keep abreast of technological developments and respond to changes in the surrounding environment by holding the necessary training programs for accountants to qualify them and improve their skills in using digital transformation techniques and modern technological means to perform their work, and providing the necessary devices and networks to implement digital transformation. 2. the need for academics and researchers to conduct further scientific research and highlight the importance of applying digital transformation techniques such as artificial intelligence, big data, robots, cloud computing in banking units and the impact of their application on those units. 3. regulators and standard-setters should seek to issue standards and guidelines commensurate with modern technological developments and their application in the field of accounting. 4. 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and digital transformation: evidence from thai listed firms, kornchai phornlaphatrachakorn, khajit na kalasindhu / journal of asian finance, economics and business vol 8 no 8 0409–0419. 15. shan, y. g., & troshani, i. (2020). digital corporate reporting and value relevance: evidence from the us and japan. international journal of managerial finance. 16. oudat, m. s., & ali, b. j. (2021). the underlying effect of risk management on banks' financial performance: an analytical study on commercial and investment banking in bahrain. ilkogretim online, 20(5). american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 16 www.americanjournal.org a statistical study to show the impact of banking system deposits on the gross domestic product in iraq during the period (2005-2020) hayder sabah tuama haidar_1100@yahoo.com college of administration and economics university of maysan-iraq ali salman tuama alchaabawi college of administration and economics university of maysan-iraq a b s t r a c t k e y w o r d s monetary variables (bank deposits and cash credit) are considered important variables in monetary policy in developing and developed countries alike, especially by providing financing for the development process and providing cash liquidity needed by investment activity, but iraq is the exception to that as it did not rely much on the commodity sectors in creating added value, because the economy depends on external variables, including the rentier resource coming from the extractive sector. does monetary policy and the weak role of the central bank in economic activity in iraq during the period (2005-2020), and statistical and standard tests were used that showed the presence of stability of the variables in the first difference, and the lack of self-correlation between the variables, and the heterogeneity of the variation between the studied variables, in addition to the substantiality of the model, which means the possibility of activating monetary policy in iraq to influence economic activity. bank deposits, cash credit, monetary policy, error correction vector introduction the deposits of the banking system, in both its current and fixed parts, should be employed to indicate their impact on the gross domestic product, in addition to the effect of cash credit granted by the banking system in both its governmental and private parts, and pledged credit. dependent and independent variables, to contribute to assisting the set of monetary policy to activate the role of monetary variables in economic activity and achieve the desired goals for which they were set, and the possibility of getting rid of problems associated with monetary variables, and making monetary policy american journal of business management, economics and banking volume 11 april, 2023 p a g e | 17 www.americanjournal.org effective and intertwined with fiscal policy to achieve stability in the general level of prices, and address problems economy, including inflation and unemployment. the statistical descriptive analysis of the study variables, represented by the gross domestic product (gdp) as a dependent variable, bank deposits and cash credit as an independent variable, and pledge credit as an independent variable, for the purpose of measuring and estimating the regression equation for the model variables on according to the vecm methodology, achieving results that are consistent with the theoretical hypotheses of the statistical model, and showing the accuracy of the theoretical signals for this relationship, and through which an explanation can be provided for the phenomenon under study, or the possibility of predicting the future behavior of the study variables. research hypothesis: the study was based on the following hypotheses 1-bank deposits and cash credit in iraq did not contribute to activating monetary policy in iraq during the period (2005-2020) 2-there is a strong correlation between the independent monetary variables represented by bank deposits and cash credit, and the dependent variable represented by the gross domestic product in iraq. search goal: 1-analysis of cash credit and bank deposits in the iraqi economy during the period (2005-2020) 2-analyzing the impact of monetary policy on the gross domestic product in iraq. 3-knowing the impact of monetary variables that were not included in the model by knowing the impact of the variables that the model includes. research problem: despite the presence of financial abundance in the banking system, it did not play the role of commodity sectors in economic activity, due to the ineffectiveness of monetary policy and its lack of ability to interact with fiscal policy during the period (2005-2020) first: standard model description standard statistical tests, like other sciences, are based on a logical sequence in testing and analysis, as any standard study goes through four stages as follows.( abdel-qader: 2004, 16) the first stage: dealing with and setting statistical hypotheses and choosing the appropriate model for it the second stage: it is concerned with the estimation process and the use of appropriate statistical tests after estimating the model parameters, whether it is simple or multiple. the third stage: evaluating the estimation process of the model the fourth stage: predicting the future of the phenomenon under study american journal of business management, economics and banking volume 11 april, 2023 p a g e | 18 www.americanjournal.org 1-the model variables: the statistical study in the analysis depends on a successive set of steps, where each step is based on the previous one, and because statistics is a tool for analyzing theory, in addition to that the theory sets hypotheses that explain the behavior of the variables to be studied, testing time series through statistical laws and theories and making appropriate decisions to address economic problems.( ibrahim & others: 2002, 18) the description and formulation of hypotheses in a standard statistical manner is the process of linking the studied problem through its variables that affect it, depending on theoretical hypotheses, and for this reason the description will be as follows.( ali: 2011, 10) a-the dependent variable: gross domestic product (gdp), and the annual data was obtained through the annual statistical bulletins issued by the ministry of planning. b-independent variables: bank depositi (bd), which shows the role and effectiveness of monetary policy in affecting gdp, while the other independent variable that is expected to affect gdp is cash credit (cc). the mathematical formulation of the model is in the form of a mathematical equation, as in equation (1), that this relationship has an exact form and is devoid of a random variable.(wallis: 2001, 71) 𝑮𝑫𝑷𝒕 = 𝒇 (𝑪𝑪𝒕 , 𝑩𝑫𝒕 ) … … … … … … … . . … . … … (𝟏) and after adding the random variable for the purpose of measuring it as in equation (2) 𝑮𝑫𝑷𝒕 = 𝑩𝟎 + 𝑩𝟏𝑪𝑪𝟏 + 𝑩𝟐𝑩𝑫𝟐 + 𝜺𝒕 … … . . … … . (𝟐) for the purpose of obtaining standard statistical tests that reflect the impact of variables on economic activity and the role of monetary policy in iraq, the researchers used a time series of (17) observations extending up to the year (2020). table (1): gross domestic product, cash credit, and bank deposits in iraq for the period (2005-2020) bd cc gdp year 10769995 1717450 65798566.8 2005 16928295 2664898 85431538.8 2006 26188926 3459020 100100817 2007 34524959 4587454 147641254 2008 38582477 5690062 120429277 2009 47947232 11721535 146453469 2010 56150094 20344076 192237070 2011 62005935 28438688 227221851 2012 68855487 29952012 243518659 2013 74073336 34123067 236708036 2014 64344061 36752680 185550902 2015 62398733 37180123 186397294 2016 67048631 37952829 220905644 2017 76893927 38486947 221765433 2018 82106425 42052511 224654191 2019 84924168 49817737 222441755.8 2020 source: american journal of business management, economics and banking volume 11 april, 2023 p a g e | 19 www.americanjournal.org 1-ministry of planning, central agency for statistics and information technology, annual statistical abstract, national accounts, different years. 2-ministry of finance, annual bulletin, general budget department, various years second: testing the stability of the variables the characteristic of stillness and stability for each variable is very important, because it enables the researcher to detect false regression, and in order to avoid false regression, one must rely on tests prepared for that, through which the researcher can predict the future of the phenomenon, and statistical tests are an important tool in drawing monetary policy for the model under study.( milis: 2009, 592) and that the test is compatible with the nature of the variables, and the probability (prob) is chosen with a degree of (0.05), when it is less than (0.05) it means that the variable is static and stable, and if the probability is higher or equal to (0.05) it means that it is not static, and whenever, that is, not the future of the variable can be predicted. ( al-sawai: 2011, 191) 1-dickie fuller stability test: the modified dickie-folar test is considered one of the stability tests, and it is one of the unit root tests, knowing the static, getting rid of the instability and converting it into a stable series by taking its first difference, and when testing it is necessary that the amount of random error (ut) be unrelated through the following hypotheses. ( dickey & fuller: 2006, 482) null hypothesis: the existence of a unit root, i.e. instability alternative hypothesis: no root the (adf) depends on the stability of the variable x_t, for example, on the estimation in the following way (ols). (mohamed: 2013, 125) 𝒎𝒐𝒅𝒆𝒍(𝒊): ∆𝒙𝒕 = 𝝀. 𝑿𝒕−𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒙𝒕 − 𝒋 + 𝟏 + ɛ𝒕 … … … … . … … . . … . . … . . (𝟑) 𝒑 𝒋=𝟐 𝒎𝒐𝒅𝒆𝒍(𝒊𝒊): ∆𝒙𝒕 = 𝝀. 𝑿𝒕−𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒙𝒕 − 𝒋 + 𝟏 + 𝒄 + ɛ𝒕 … … … … … . . . . . … … (𝟒) 𝒑 𝒋=𝟐 𝒎𝒐𝒅𝒆𝒍(𝒊𝒊𝒊): ∆𝒙𝒕 = 𝝀. 𝑿𝒕−𝟏 − 𝟏 ∑ ɸ𝒋 𝜟𝒙𝒕 − 𝒋 + 𝟏 + 𝒄 + 𝒃𝒕 + ɛ𝒕 … … … . … . . . . (𝟓) 𝒑 𝒋=𝟐 after conducting the test as shown in table (2), the results of the model test using (adf), were as follows: athe test values (gdp) of the gross domestic product in the iraqi economy for the period (20052020): it was unstable (at level) in the case of a constant, constant and trend, or without them, and after taking the first difference for the same variable, it was stable in the case of the absence of a constant trend at the level of (5%) and it was stable in the first difference. bthe variable (bd) bank deposits in iraq during the period (2005-2020): the test was conducted for the time series at the level, and the variable was unstable, and when taking the first difference, the variable was stable, static, and integrated from the rank (i(1)). american journal of business management, economics and banking volume 11 april, 2023 p a g e | 20 www.americanjournal.org cthe results of the variable (cc) cash credit in iraq during the period (2005-2020): after conducting the test, it was found that the variable is unstable in constant, constant and trending, without constant and general trend, at the level (at level), and the two researchers tested cash credit after taking the first difference, the results of the test were that the variable is static and stable with the constant, constant and direction, and without them, i.e. it is integrated of order (i(1)). dthis result necessitates the researchers to use the (vecm) methodology because it is compatible with the degree of rest of the model table (2) results of the dickie fuller root unit test (adf) at the level and first difference unit root test results table (adf) null hypothesis: the variable has a unit root at level gdp cc bd -2.3024 -2.5573 -1.5954 t-statistic with constant 0.1024 0.8376 0.4038 prob. n0 n0 n0 -1.2603 -2.7592 -1.94740 t-statistic with constant & trend 0.4392 0.2128 0.1673 prob. n0 n0 n0 0.9372 0.9471 -0.6942 t-statistic without constant & trend 0.7091 0.9073 0.4102 prob. n0 n0 n0 significan at first difference d(gdp) d(cc) d(bd) -3.1672 -6.32911 -5.3632 t-statistic with constant 0.2201 0.001 0.001 prob. n0 *** *** -2.3531 -6.4302 -2.8992 t-statistic with constant & trend 0.3905 0.000 0.0046 prob. n0 *** *** -2.2365 -6.40310 -2.9004 t-statistic without constant & trend 0.0261 0.000 0.0432 prob. ** *** *** significan a: (*)significant at the 10%; (**)significant at the 5%; (***) significant at the 1% and (no) not significant b: lag length based on sic c: probability based on mackinnon (1996) one-sided p-values. source: from eviews 12 third: diagnostic tests 1-the problem of autocorrelation: one of the problems facing multiple regression is the lack of self-correlation between the values of the random variable (ut) in year (t) and its value in other years, whether previous or subsequent, meaning that the values are independent and agency.( baltagi: 2011, 212) american journal of business management, economics and banking volume 11 april, 2023 p a g e | 21 www.americanjournal.org 𝑪𝑶𝑽(𝑼𝒕, 𝑼𝒕−𝒔) = 𝟎 … … … … … … … . . (𝟔) , (𝒕 = 𝟏, 𝟐, … . . 𝒏) it means that the phenomenon under study in the year (t) does not affect the phenomenon in the previous year (t-1), or the phenomenon in the subsequent year (t + 1), while the reality shows otherwise and the error limit of the random variable in a certain period has a relationship with another period of time, and the problem of autocorrelation appears because there are reasons for it.( bakhit & fathallah: 2014, 189) aextended effects of time series data bthe process of processing and refining the data and reducing the percentage of inaccuracy in it. c incorrect formulation of the model, which leads to distortion of the form of the functional relationship between the variables under study. d omitting the independent variables that are difficult to characterize and obtaining accurate data about, leads to making the random variable include the associated variables, and then (ut) not only reflects the random error in the model, but reflects the omitted variables. 2-autocorrelation test: there are many methods for analyzing the correlation between variables and detecting the problem of self-correlation through the basic assumptions on which the multiple standard statistical model is based. ( granger & newbold: 2017, 121) meaning that the values of the random variable are independent and express equality in the covariance of successive errors, which is evidence of the failure of the selection process this requires re-evaluating the model.(hashman: 2006, 195) after conducting the lm tests on the model, it was found that it does not suffer from self-correlation and that the probability value was greater than (5%), meaning that it is not significant, which prompts the researchers to accept the null hypothesis, i.e. gross domestic product (gdp) and cash credit ( cc) and bank deposits (bd) do not suffer from autocorrelation as in table (3). table (3) autocorrelation test residual serial correlation lm tests date: 03/30/23 time: 12:03 sample: 2005 2020 included observations: 16 null hypothesis: no serial correlation at lag h prob. lre* stat df prob. rao f-stat df lag 0.7802 5.551003 9 0.7828 0.61002 (9, 75.6) 1 0.9761 2.661792 9 0.9783 0.28763 (9, 75.6) 2 null hypothesis: no serial correlation at lags 1 to h prob. lre* stat df prob. rao f-stat df lag 0.7893 5.551971 9 0.7819 0.610771 (9, 75.6) 1 0.7248 14.18040 18 0.7105 0.777057 (18, 79.7) 2 *edgeworth expansion corrected likelihood ratio statistic. source: from eviews 12 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 22 www.americanjournal.org 3-the problem of consistency of variance homogeneity: the hypothesis of stability of the error limit is unrealistic to explain the capabilities of the model, and it is difficult to stabilize the variance of the remainder in the regression equation, so the problem of inhomogeneity occurs, and the phenomenon of heterogeneity of variance affects the estimates under study. the error (ui) in the regression model is fixed variance, which means that there is a case of homogeneity of variance, which means that there is a state of instability for variance, which is that the estimators represent the best linear estimators of the model and are unbiased, and it is called (heteroscedasticity), which is the opposite case of the first case. (pindyck, & rubinfeld: 2004, 581 ) so if the imposition of homogeneity of variance was not achieved in the error limit, as this means the inability to estimate the parameters at a significant level and with the least variances. one of the negative results of the problem is heterogeneity. the prediction is in the dependent variable or the independent variables by relying on the estimators and their flexibility, that is, the prediction is insignificant and inefficient. because the prediction includes the variance of the error term (ui) in addition to the variance of the estimates of the model.( david: 2000, 581) 4-test for homogeneity of variance of the model: the researchers relied on the (goldfeld-quandt) test, and it requires arranging the observations according to the variables, and it is assumed that the problem is due to a difference in variance, and that the test equation in the model consists of three variables, one of which is a dependent variable: 𝑮𝑫𝑷𝒊 = 𝑩𝟏 + 𝑩𝟐𝑪𝑪𝟏 + 𝑩𝟑𝑩𝑫𝟐 + 𝒖𝒊 … … . . … … . (𝟕) the first step is to estimate the equation and the residual is (u ̂i), and then estimate the regression of the sum of squares of the residuals from the regression equation on the three variables, and note the value of (chi-sq) and the level of (prob) if it is less or greater than (5%) through the equation ( 8) based on the results of (eviews 12). 𝑮𝑫�̂�𝒊 𝟐 = 𝜶𝟏 + 𝜶𝟐𝑪𝑪𝟐𝒊 + 𝜶𝟑𝑩𝑫𝟑𝒊 + 𝜶𝟒𝑪𝑪𝟐𝒊 𝟐 + 𝜶𝟓𝑩𝑫𝟑𝒊 𝟐 + 𝜶𝟔𝑪𝑪𝟐𝒊𝑩𝑫𝟑𝒊+𝒗𝒊. … . (𝟖) under the validity of the null hypothesis, there is no difference in the variance of the error limit, and it is proved that it results from multiplying the sample size (n) with the modified coefficient of determination (r2) obtained by the researchers from the regression in equation (8), where (chi-sq) with degrees of freedom equal to the variables, and the result is that the value of (chi-sq) in the report (eviews 12) as in table (4) is greater than the value (chi-sq), where the value of (prob) was (0.0001), and we conclude that there is a stability of variance, and the absence of a problem in the model and that the values of the estimators did not suffer from false regression, as they are used to predict the future of the statistical phenomenon, that is, the relationship between (gdp) during the period (20052020), and the independent variables, through the test of homogeneity of variance in table (4) the equation of the model and the calculation of the residuals and the data for the three variables were estimated with a significance of (5%), the value of (chi-sq) is equal to (126.7), and this means that there is a stability of variance, and that the model does not include the problem, so the researchers see that the best methodology for estimating the parameters according to (vecm ), and finding the effect of the independent variables on the gross domestic product. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 23 www.americanjournal.org table (4) results of the homogeneity of variance test residual heteroskedasticity tests (levels and squares) date: 03/30/23 time: 12:46 sample: 2005 2020 included observations: 17 joint test: prob. df chi-sq 0.0001 72 126.7396 individual components: prob. r-squared f(12,30) prob. chi-sq(12) dependent 0.001 0.88 16.11 0.0001 37.51995 res1*res1 0.95 0.13 0.36 0.9707 5.299881 res2*res2 0.03 0.56 3.16 0.0052 24.00507 res3*res3 0.08 0.44 1.83 0.0723 18.69309 res2*res1 0.02 0.58 3.85 0.0016 25.79990 res3*res1 0.19 0.31 1.56 0.1780 16.13796 res3*res2 source: from eviews 12 fourthly: estimating the model using the (vecm) methodology the (vecm) methodology used by the two researchers is after making sure that all variables are stable in the first order (i (1)), and the (vecm) methodology is characterized as contributing to reducing the residuals to the lowest possible level, so that the estimators with this methodology reduce the error limit to the lowest possible level. (hall: 2005, 282) by estimating the dependent variable in terms of the stable explanatory variables by the first difference, which is used to detect the random walk of the variable’s values over time, for the purpose of differentiating between static and non-static random walk, if the general trend of the variable is predictable, and not a variable that will express the estimation of the variables in a manner ideally, and vice versa if it is static in the plane or in the second difference and is called a random general direction.( gujarat: 2015, 1033) the use of the vector error correction model (vecm) to estimate the regression equation in the case of the presence of one dependent variable (vector error correction estimates), the method of error correction presented by (granger) and (engle) means reconciling the behavior of variables in the short term with its behavior in in the long term, the field of variables is constantly and gradually evolving. ( abdel-qader: 2007, 263) the researchers relied on the results of the programming package (eviews 12) to reveal the estimates of the relationship between the dependent variable represented by gross domestic product (gdp), cash credit (cc) and bank deposits (bd), after estimation, the error correction coefficient was negative and significant, as in table (5). means: 1the correction for fluctuations is made by (-1.3%), meaning that every (1%) change in monetary credit (cc) leads to changes by the correction factor in gdp. 2-a change of (1%) in bank deposits (bd) leads to changes in (gdp), by a correction coefficient of (5.4%), where the relationship is inverse between the dependent variable and the independent variables. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 24 www.americanjournal.org 3-the logarithmic function represented the model best through its capabilities, as the value of the coefficient of determination (r2) showed the amount of error in the model and was represented by the variables that were not in the model, so its amount was (38%), while the variables included in the model affect the the dependent variable by (62%). 4-the (f) test represents the significance of the model estimated by the (vecm) method, through the calculated (f) test value that is (7.4) and is greater than the tabular (f) value. using the results of other studies because they passed the condition of significance of the model. table (5) error correction model (vecm) vector error correction estimates date: 03/30/23 time: 12:45 sample (adjusted): 2009 2020 included observations: 16 after adjustments standard errors in ( ) & t-statistics in [ ] cointeq1 cointegrating eq: 1.000000 log gdp (-1) -2.3108 log cc(-1) (2.9e-08) [-0.41348] -5.03e-08 log bd (-1) (2.8e-08) [-1.82397] -10.48049 c d(cc) d(cc) d(un) error correction: 146338.9 146338.9 -0.36483 cointeq1 (58380.4) (58380.4) (0.08515) [ 2.50664] [ 2.50664] [-4.21553] 43336.85 43336.85 0.684490 d(log(gdp(-1))) (97305.2) (97305.2) (0.14193) [ 0.44537] [ 0.44537] [ 4.82287] 0.892365 0.892365 1.50e-07 d(log(cc(-1))) (0.17311) (0.17311) (2.5e-07) [ 5.15488] [ 5.15488] [ 0.55548] 0.037303 0.037303 -1.26e-08 d(log(bd(-1))) (0.07473) (0.07473) (1.1e-07) [ 0.49917] [ 0.49917] [-0.10687] 238555.2 238555.2 -0.237460 c (111827.) (111827.) (0.16311) [ 2.13325] [ 2.13325] [-1.45585] 0.752245 0.815648 0.6413 r-squared 0.701237 0.777694 0.6264 adj. r-squared 2.39e+13 4.51e+12 9.586095 sum sq. resids 837598.1 364045.5 0.530984 s.e. equation 14.74748 21.49001 7. 4876 f-statistic -627.9663 -592.9694 -28.67094 log likelihood 30.28411 28.61759 1.741473 akaike aic 30.61509 28.94857 2.072458 schwarz sc -417150.4 978855.7 -0.022619 mean dependent 1532399. 772110.8 0.766084 s.d. dependent source: from eviews 12 american journal of business management, economics and banking volume 11 april, 2023 p a g e | 25 www.americanjournal.org conclusions and recommendations first: conclusions 1-the explanatory variables of the model are influential in a reasonable and logical degree and reflect the role of monetary policy in economic activity, as indicated by the flexibility coefficient through the (t) test. 2-the decrease in the corrected coefficient of determination indicates the presence of other monetary variables that were not included in the model, affecting the monetary policy in iraq. 3-the weakness of the impact of bank deposits on the gross domestic product during the period (20052020) is due to the weak banking awareness of the iraqi society and the weak confidence in the banking system, which indicates the inefficiency of iraqi banks and their inability to attract local savings from the business sector and family savings. 4-the effect of cash credit on the gross domestic product was not at the required level and is not in line with the logic of the theory and the prior and expected theoretical expectations of the variable under study. second: recommendations 1-the necessity of supporting the banking system and activating the role of monetary policy in economic activity through quantitative and qualitative tools, and focusing on qualitative tools, including preferential prices, and moral persuasion. 2-facilitating the mechanism for granting loans to the business sector by defining a work team that studies the appropriate mechanism for that, which is commensurate with the reality of the iraqi economy, and focus on activating the private banking system and following up on its activity. 3-work by the ministry of planning and finance and the central bank to create a stable environment, to carry out realistic reforms and not to rely excessively on the rentier economy. 4-working to unify efforts in monetary policy through interaction, coordination, and relying on the analysis of the money market and the commodity market to activate aggregate demand that creates an increase in resources, stimulate investment, and activate cash credit and bank deposits. references: 1. dr. abdel-qader muhammad abdel-qader attia, the hadith in econometrics between theory and practice, dar al-asir for printing and publishing, first edition, makkah al-mukarramah, saudi arabia, 2004. 2. dr. bassam younis ibrahim and others, econometrics, dar azza for publishing and distribution, khartoum sudan, first edition, 2002. 3. makid ali, econometrics lessons and solved issues, dar al-diwan university press for printing and publishing, second edition, amman, jordan, 2011. 4. kenneth f. wallis, introduction to econometrics, translated by adel abdul ghani mahboob, mosul, dar kutub for printing and publishing, third edition, 2001. 5. c. milis," testing for the unit root in time series regression", journal of business and ecocnomic statistics, vol.89,2009. 6. khaled muhammad al-sawai, basics of econometrics using eviews, dar al-kitab al-thaqafy for printing and publishing, irbid, jordan, 2011. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 26 www.americanjournal.org 7. d.a. dickey and w.a. fuller,"distribution of the estimators for autoregressive time series with a unit root," journal of the american statistical association, vol 147, 2006. 8. ahmed salami &mohamed sheikhi, algerian economy for the period (1970-2011), algeria, researcher magazine, issue (13), 2013. 9. baltagi,b.h," econometrics analysis of panel data, 2end edition, newyork vol.165,2011. 10. dr. hussein ali bakhit, dr. sahar fathallah, econometrics, second edition, dar al-yazuri for printing and publishing, 2014. 11. c.w.j. granger and p. newbold "spurous regressions in eonometrics" journal of econometrics ,vol . 3 , 2017 . 12. mouloud hashman, time series and short-range forecasting techniques, university press for publishing and distribution, third edition, 2006. 13. pindyck, & rubinfeld,"econometric models and economic forecasts" 2nd ed, mcgraw-hill book company,london,2004. 14. david, j,"econometric theory", blackwell publishers ltd,oxford, england, 2000. 15. a.hall, cointegraion with in money and income", oxford bulletin of economics and statstics, vol.120,2005. 16. dr. gujarat, econometrics, dar al-marikh for printing and publishing, translated by: dr. hind abdul ghaffar odeh, kingdom of saudi arabia, first edition, 2015, part two. 17. mr. metwally abdel-qader, deriving the error correction model from johansen's equivalent integration test: a theoretical framework and practical example using eviews6, higher institute of computers, management information systems and management sciences, shubra elkheima egypt, 2007. american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 44 www.americanjournal.org studying the effect of institutional pressures on the intention to adopt green information technology: environmental awareness as the mediating variable kasim m jalod thi qar university college of administration economics, business administration departmentiraq qassim-m@utq.edu.iq a b s t r a c t k e y w o r d s these days, increasing amounts of carbon footprint which is generated by small enterprises at thi-qar province pose negative effects to the environment. consequently, the pressures on these enterprises are escalating. therefore, the objective of this research is to understand the effect of institutional pressures on the intention managers of these enterprises to adopt green information technology. a research model has been developed to link three components, coercive pressure, normative influence, mimicry, and study the effect of these variables on the intention to adopt green information technology, then exam role of environmental awareness as mediate variable. a questionnaire was developed to collect data. it contains five major variables, exemplifying by twenty-one items. also, seven dimensions’ scalar is used for the purpose of measuring, subjected to reliability and validity tests. the partial least squares (pls) method was employed to analyze the survey answers by smart pls 3.2.9 software. the research found a set of results, the most important of which is the positive significant effect of environmental awareness on the intention to adopt green information technology, as well as the positive significant effect of environmental awareness on the intention to adopt green information technology. the results also indicated that environmental awareness mediates the relationship between environmental awareness and the intention to adopt green information technology. the results show that coercive pressures, mimetic and normative, significantly drive green information institutional pressures, green information technology adopt, environmental awareness mailto:qassim-m@utq.edu.iq american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 45 www.americanjournal.org technology respectively. through importance-performance analysis, the study also showed that coercive pressures were the most impacted on the intention to adopt green information technology finally, researcher discuss the research results and make a set of recommendations and propose several future research. محافظة ذي قار( )دراسة في عينة من الشركات صغيرة الحجم في م . قاسم متعب جلود العراق -جامعة ذي قار –كلية اإلدارة واالقتصاد –قسم إدارة األعمال qassim-m@utq.edu.iq المستخلص ملشخخخ صغ رخخخل م صمعال صمفص لب فظ عصفقب ب سصم ص خخختر صم عةل ص خخختفرصملص صمرت ص مت ب تتضخخخال صمة خخخرب صمة ب صمرفل صغ فظ شخخصتصتلص صفبو دس صادصدغ صمضخخل ت صمرة خخيخخ ب فل لص م ففلص رخخ ر تة ظ رصم خخصغ ت ب صمرفل صغ صماضخخ ص دفظ وخ هذص . و دت م دمهص فظ صمع ن صمتل صمُر صخظ صمذب أ ص لريخ وخ ةلص فظ صمة ئبملتاف ف ن صآلثصم صميخلة ب صمتظ تيخة تلك صمشخخخخ صغ متة ظ ت ب صمرفل صغ صمر ن فظ ل ف عث ص صمى صمتف ف فلى صمضخخخخل ت صمرة خخخخيخخخخ ب صمتظ تةث فظ ص ص صمفلل صً ت خ صمفقسب ن صمضخل ت صمرة خيخ بو د ص ص تة ظ ت ب صمرفل صغ صماضخ ص . د ن ثمل تشخا د ددم صم فظ صمة ئظ رخف تل ( فظ صمشخخ صغ رخخل م صمعال خخصتب 181ملذص صمل ض اط ف وخخظ ملةعا صمذب ُمرفب ص صت ن ت م صصماضخخ ص . دتلب ن صمف ب صإلمص ب فلى ف مو أخضخخفب تختةصمصغ صم خخ او دصمثةصغ صمرفر ، و 21ص خختةص ب تضخخر ب خريخخب أ فصد فيخخ تلص ن خق، ف صتلص دفق صس م ة غ صميخةصفظ. صتضخم ن فط صغ صمتعل ا صإلا خصبظ ص ختفرص، ت ب صمر فصغ صم خل ز صما ب ب صماضخ ص و ن صمضخل ت صمرة خيخ ب اترفب تةث ا اص ص فظ ص ص ف ب صمةعا متة ظ ت ب صمرفل صغ أ smart pls 3.2.9 ص ج دفظ صم فظ صمة ئظ صمذب دمِه أث فظ صم ص صو دت خخخ م ب ص صمفقسب ن ن صمرتل صمريخخخت ا دصمرتل صمتص م. دم خخخرب صمضخخخل ت صمرة خخيخخ ب صإلم صمو دصمت ل و دصمرف صم ب( ا فلى ا صم خخ مم فيخخلص تيث هص فظ صم ص صو صسا صمةعا صم تصبج صمتظ ت رخخا ملصو صت خخخت تصمصغ دأختتل صمةعا وصيدص س م ن ا ا صي فصد ث أ صن صم فظ صمة ئظصيدص أن تصبج د ص خخختا صم تعل ا صيهر ب د ب صم دصمت ر صغ. تبني تقنية المعلومات الخضراء، الوعي البيئي المؤسسية،الضغوط المفتاحية: الكلمات قدمة ـــــــالم ةا تل د صمتظ فظ مر م أ عص صمرفر مم ي ب صمف صسب ة صمث تة ف ب ة ة ص تع صمتظ صمف فب صمتل صغ صمُر صخ ب تُ ذم دشك خيصمم ف ب امى أ ص فلى ن صمة ئظيصمرف ن صمش مرم أس د. صمتظ فص ظ لص صمةث صيا صغ صإل يص با م ن تود ص ف ش فن صم صدم صمرف تب فظ اال بصم صمر بصمرية س صمر صخ ب تل صغ صمهذه مةةم مرص م ئبو دفصملب ص مل تتاذ خط صغ ا صدم د تن ت ب 1.43صمتظ درلب صمى صمراتلفبفن صم شصتصغ صمرت م م ثص ظ أد ي صمةصم ن ودصمر ثصن ودأ ي صم ت دا(صم ف ئب صملصاصغ صمةصم ن صمذب ت دصد ر ت فظ صملقف أد ي ر صمتلص صا ثص ظ فظد و2002فظ فصم تن ت ب 0.53 ف أن ص ب 2020فظ فصم mailto:qassim-m@utq.edu.iq american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 46 www.americanjournal.org دس أشصمغ صمت صم صيخ م صغ صم لب و2020م فظ صمرل ن فصم 4190 امىا ا درلب يةت صماط و رف ، ذم صما ب فظ فصم م صمرل ن 320 ف أن ص ب م صمرل ن فظ يصن صمرصوظ 430صمى أن اال صا ثص ظ يد ي صمةصم ن درا صمى يتل ف.صمر ل ب صم ر ، صمى صمع صد صمة ظ %20 ر صم 1990فلى و دمم ت ل للص صمى ددن يت صتلص فصم دش ددص .1960 و ه ي ،أن صم ص ت تي رص تشتلظ صميفُنو ين صملصاصغ صمريةةب مقاتةصس صمع صمب فظ صملقف صما ب ت دصد ت م أ ع رص صمةصم ن صا ثص ظ أد ي ل صم تن 31 ف أن أتل ب صمةش ب covid-19 د ُت سم أن ت تفم هذص صمفصم م تفصفظ صمفصمل ن مصبعب . 2010% ت ةص فرص ص ب فل ب فظ فصم 14 يةب 2030 عل ، فصم ت دصد ُت سم أن د (.maudre et al,2021صمفصم صمرصوظ فظ د م دم د دفظ فلى و دمم فةس فرل ب صمت ه م صمة ئظ دصمتع ك ع ةصدمصغ ود رصم صغ صيفرص، صمريت ص بو فإن و صمةًص ص فة دن فظ صمرشةقغ صمة ئ ب صفتةصمهص ف لب فن ا صتلل رل م صمعالصمف ن صيشاصص و رص فظ مك سصدم صمش صغ ل. رص مفا فلل ص تاص تلل صمى صمضل ت صمرة ي ب صمتظ تف و ن ام لص مت ع م هذص صم ر ن صمتفة صمفرل ب صم ب دأ رصت ل ل أن.ت و دمم لعب صم رص ف صمعالا امىدملب لصم صمش صغ رل م صمفصمل دصمم ت ب لص فظ ف ن دد، تيتا م مريصهرتلص صميلة ب فظ دت تةت ث وصماط صمذب صهرلص ااص ت ف سف صمرتف ج صمرفل صغ ةثصفب يدص أفرصملص دفظ صم سب في دففلص ر ر ل ف دصمارل م دصم صبنو دصمر صفي نو صيخ م ن صمعة صغصمضل ت فل لص فظ صآلد ب صمة ئ بو دت ص غ صت ت ص ب صمتظ صيو صم اف ففلى صمض صم صسم مت ام ص صغصتاص د آم صغودصمش دع ررصم صغ ت ط ب فلى ت ف ذ ملة ئبولصج ل ك صمظ تص أرةعب صمعصمب ت ص م تن ق أرعصر صم صم ف لص ف ق ب امى صمة رب صمار موأن صماط ل د ل ف أدمص لد صمة ئب.تيةةلص فظ د دن شك ل د صمي ط مودمفللص تعب صمر ة مبوخ دملص فن صمع دد و دتي ا ف ن فصا بت ب صمرفل صغ فظ ش صتلل مصمة ب ص ف ا دأففصملل امى تفة هلو دتع ا مل ف صمر ش دهذص رة ص ا رص ة ن م لل دفظ ددمص ب صمررصم صغ صمتظ تةدب امى ل غ ص ن صمة د صما م صمتظ ئ ص دمفللصدصفترصد صمررصم صغ صميل رب دصمرل بودتف ا فض صمررصم صغ صمشا ب ملة ئبوصميل ك صمر صمظ .ادصمصتلص تعقى صيدم ب فلى م د، أفرص، غش د صن صمتعل ا صتمترصفظ مليل ك صمت ق رظ د فظ أفةصم ن ص تر غ مؤ لص صمفليف بصمتظ صمرة ي ب ةصدئ صم ق ب فلى دفق د أن تي هص فلى ص هصو د صمرصمظ فظ تفي صبلصدأصمرلرب د أدصبلصص ف ن صمش بو دصم ق صمىصمرف ف ب ميل ك فلى صمتفي صغف لص ن ت فصغ صمش ب بو أد ة مبو أد ي( رثص ب ت م أد صفت صض scott,2001مأز تُف فلى صمتظ صمش ف ب ل غ صمش ب ةدب .دأن هذص صتمت صم لظ فل لص ص اب ففلبر صت تاص ب ملرفص صمرع دم صمترصف ص صمتظ ت ُل لص ص ةب دصخا صمراص، صمرة يظو تفرا ورن اتصم صمترصفظ ن صمرفص و دصم لو دصتفت صوصغ صمريلل لص صمذب شةا ل ص صست صد ص لصصمى ت ل ا ف م صمتي ت رص أ (. دأن ددصفم صميل ك صمةش ب ترت امى ص ه أ ف ن صمتعي ن صتست صدب امى صمتة صتمترصفظو oliver,1997 ص ةص أد ة ت ترصف بو فل صك ا ن ف صر صمراترم متشة ا خخت صم صتمترصفظو دتصمرص أن صيف صد أد صمر قرصغ أ ز م ب ن مألف صف صتمدصتم فظ (. دhassandoust et al (2022,ضظ صمى صم اص صمت ق رظخس صمصتلل متترصشى م صيف صف صتمترصف بو دأن هذص صمت صفق ف ( صمتشص فظ صمررصم صغ صمت ق ر ب صمتظ تتة صهص صمش صغ امى ف لص ملع ، فلى maudre et al,2021 يب ا ا ر ، صمش ف ب ن خق، صمل ص او دصمررصم صغ صمت ق ر ب صمرشص صمر م دم فظ صمراص، صمت ق رظ مت ةم ترصثلب م ئتلص. رف ى أن تل لص أ ث امرص ص رص تف ن فل لص صم صم متا ب ف ص لص ش ف تلص فظ ش ف ب صمش ب ض ن ت خ لص صمفراو دصمضل ت فل لص تافل اصملص صمت ق رظ. دتتة ف صمش صغ لصو صمش صغ دت ش صميل ك صمرة يصغ فظآم صغ ترصثلب ن خقملص تةث صمتظ تخُف صمضل ت صمرة ي ب دتة صمضل ت ول ت أ صع ن مثقثب تف ولص صمرة يظ ففا صمتل دصمضل ت صإلم صمو دول ت م دتةيب صمرف صم ب صمت ل و .) صمر صمد دسص ل صغ صمش ف ب فقدم فلى صمضل ت (. دفن dimaggio and powell,1983صمة ص صمش ب صتب يص م هذه american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 47 www.americanjournal.org saeed et al,2018 صم ق ب صمتظ تم ( تة د صمة ف ب صمة ئ ب. دسُةِاو ط موصمرة ي ب ف م مفلل دفظ ا ا د ُش فل م صت ت ص ب صغ س رب صمترصف ب فظ دص مو دت ةمأن صمررصم صغ صماض ص ا رص ت تش فلى طصا امى ( juarez-luis,2018 ه ر ، دس صست ن ت ص صتهترصم صمراصت صمرت م م فن .مةل غ صمش ف ب صمراص، صمرة يظ فإن ف ن صمش صغ تتة صهص رفلص ت ق صمك دمم صإل طص ن دت م ظصه م تضال اال صملصاصغ صم ف ئبو صمتظ تف اهص صمرة صغ صمراتلفب مت ب صمرفل صغ فظ ة فلى و و دأرةم هذص صم فظ دصففص م ص ملت د ج إلدخص، رصم صغ ت ب صمرفل صغ صماض ص فظ شصتصغ تلك صمش صغ صتات صم صمفصمرظ صمتظ ن شي لص أن تةدب ددمص فظ صمع ن هذه صمراصت . دتة ب ف لص ت ب صمرفل صغ صماض ص ف أن أرةعب شصبف رفلص ن ملص تاف ض رتلص صمة بو رص افللص ت ص، صمش ف ب فظ اصملص صمرة يظ. ع ى ة ( أن صم ق ب تر ص إتصم ق ب قبل م مص ب تة ظ صمش صغ ت ب صمرفل صغ صماض ص ي لص che et al,2010دفلى مأب chen et al,2010;chen)دفظ و هذص صمفلل دظف صمشين.تفلل صن صم ز صمرة خي ب ن خصمج صمي ا تلفب ددمصً ا صً فظ هذص et al,2009; abdul azize et al ,2017; abdul aladheem,2018; alzaidy and enahy,2019) صم ق ب صمرة ي ب صم ل ن صت تعيصن صمذب تست صم ق ب دفلى مش صمف ص ا صماصمم ب صمتظ ت ل أب ش ب فلى تة ظ ت ب صمرفل صغ صماض ص . م غ فلى صمف ص ا صماصمم ب صمتظ تةث فلى تة ظ صمررصم صغ صماض ص دمل تةخذ ف ن صتفتةصم صمف ص ا صمت ق ر ب صمرة ي بو ات أ لص صي ةصر صمتظ م ص ش ت (. دملzhang et al,2018ددم صمر فظ ص تيصر صمش ف ب دأ فلب . (juarez-luis,2018صم صخل ب تا أ ن م تس صم أخ صغ ذمك رص ةدب صمى ف م صمتاص س ت ن صمتاص س م أ لص صمتل و دف م تافا ش صغ ف ب تتة ى (. juarez-luis,2018) hassandoust et al,2022;صمة ئب صمرة ي ب تا م ق ب صواب سم ب أ فصد د رص ج يا رص ( edmondson and mcmanus,2007 أن صمةصاا دفلى دفق ص مدج م تةرن فظ صختةصم صم ق ب فظ ئب ت تط مم ترب دمص تلص ر دم صم سب رص ه صمعص، م صم ق ب صمرة ي ب إتصم ق ب فإن يصهر يث صمضل ت صمتظ ت م تعب ضلتلص فلى صتمتةصا صمى صم ق ب صمرة ي ب م ص م ت دفلى دفق هذص صمت م ل ف عث ص صمى م م. ت ظ ف ع دد ب ةفلص دم فا م ف ف ب فظ ةتةب أ قرب صمرفل صغ صمف ب ص ص تة ظ ت ب صمرفل صغ صماض ص فظ ئب م م وم وصمى أم ص صمر دأن دم غ دمص ب ه ص ده صك في لص مل ت ا صمى دممب ة م ن صم ضج رص افل ص عصمب و ع م صم صشصم ق ب صست ص ص ت صد دفظ ئت ص و شع عب فلى مك أن صم مص صغ صمتظ ت صدمب طب ا صم ص ن دملب ق صمش صغ رل م صمعال فقدمً د صم ق صمى طصا صمةعا صمعصمظ صمذب لطظ صمش صغ رل م صمعال . مل ق ب صمرة ي ب س ة ن يم ف فظ صم مص صغ صمف ب فظ و ن صمرت سم أن يصهل فظ تة ن ف فب ا ، صمضل ت صمرة ي ب ود ص ص تة ظ ت ب صمرفل صغ صماض ص ودأهر ب صم فظ صمة ئظ صمع صمب صم دم اصت صتاتةصس صمطصسب صمتظ تيتللةلص صمرفل صغ صم صمل فن صيف صت فظ ص تا صم مت ب صمرصد ب فظ ئب رة صغ .تاصمب ف م فن هذص صمتفة فظ صمر ن هصدفصً صمى صختةصم تيث صمضل ت صمرة ي ب مهص صمثقثب فلى ص ص تة ظ مص صمةعا صمعصمظتي يص فلى ص ةق د رفب تل صم فظ صمة ئظ ةد ثل س ص م صم دم صم صمذب ف ب ن صمش صغ رل م صمعال متة ظ ت ب صمرفل صغ صماض ص ود ن صمش صغ فظ عصدمب مت م صمك صمرف ن إدصمم و ت صمفقسب ن صمضل ت صمرة ي ب د ص ص تة ظ ت ب صمرفل صغ صماض ص صمعال سصم رل م فتموفظ عصفقب ب فلى د داثلل دس ص تلصو متي للصو تا هص صفذ فلى دصمفرا م و دصت تاص ب تيث هص فلل .ف اهصتم صمعللو دتا ب صآلثصم صمضصمم صمتظ أسئلة الدراسة صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص ؟ صمر ن فظ ص ص صمرةث م ص صمضل ت صمرة ي ب -1 american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 48 www.americanjournal.org فظ صمش صغ وم صمتطة ق متة ظ صمر ند ص ص ص ددم صم فظ صمة ئظ رف تل صً ت صمفقسب ن صمضل ت صمرة ي ب -2 ت ب صمرفل صغ صماض ص ؟ د ص ه ع صم صتب؟ أهداف الدراسة صم -1 صم ز تيث فلى ا مو د اترفب فلى ص ص صختةصم صمرف صم ب( قً صمت ل و صمش صغ وم صمر ن رة ي ب صإلم صمو فظ صمتطة ق متة ظ ت ب صمرفل صغ صماض ص . صمتف ف فلى صم دم صم صمذب ةد صم فظ صمة ئظ ن صمضل ت صمرة ي ب د ص ص تة ظ ت ب صمرفل صغ صماض ص دتشا د ع -2 صتب دتة فتلص. صم أهمية الدراسة تف ةتةب أ قرب صمرفل صغ صمف صس ب دصمف ب إتصم ق ب دصوم ة ظ فلى صم ق ب صمرة ي ب تخت صم ع دصغ ص ص تة ظ -1 ت ب صمرفل صغ صماض ص . فلى صمف ص ا صمتظ تافا ش صتلل تتل ي ت ف فض صمش صه صمتا ة ب مترة ن صمرف ن إدصمم صمش صغو صم صمةعا ن صمتف ف -2 . ت تلصج ل ك شام فلى ت م ص ص تة ظ دت ف ذ ت ب صمرفل صغ صماض ص يق ب وتطوير الفرضيات الفرضي لدراسةامخطط م مص ب صم دم صم ُلاد هذص صم يل صم مص صغ صمتظ أفتر صمتظ ُ ظ فل لص صي صس صم ق ب مةعث ص ود ُط م اتصمه صمرفت ض دسةا صمش دع ر صسشب طب ا صم ص ت ن مل فظ صمة ئظ فظ صمفقسب ن صمضل ت صمرة ي ب د ص ص تة ظ ت ب صمرفل صغ صماض ص . صمى ص ه امى schryen, 2013صمت صتفت صم ه صمرفل صغ فظ اص، قل صمةصاث ن صمذب صم صمتع ب أن د ضر ) فصه ل اتلفب لص ت ب صمرفل صغ . دهذص ص دصمل صمةصاا أ ضص ف دم ص طلعصغ صمر ة مب فلى طصا دص م أد اتى صمر ا مصمر صمة ص صغ صمرفل صغ صماض ص ودتاض ص ...صمخ فص ب و دأ قرب صمع ةب صماض ص ودصمع ةب صماض ص صماض ص ودأ قرب قرب صمرفل صغ ى صمت صغ دصمفرل صغ دصمررصم صغ صمتظ تيلللص أ ما ف يتا م ت لب صمةعا فل م ت ب صمرفل صغ صماض ص مإلشصمم . دتلطظ طصسصغ اتلفب ن صمفرل صغ (melville, 2010)صمتظ رةن أن تف ا صت ت ص ب صمة ئ ب دصتست صد ب دصيدص فظ صمر قرصغ متة م م صمشص لب صمرتفل ب صإلدصمم صإلدصم ب دصمررصم صغ صمةش ب دصمر صمد دت ف ذهص صمتة م م ص تط صمت ق ر ب ثا ص دصي شطب . (molla et al,2011)صمرفل صغ فظ صمر قرب صيخض خخخ أفضم صمة ب فظ صم طصا دص فب أو صم ئ ب صست صد ب ةةب أ شطب صمى صمي م صتست صدب صم ر xu etى al,2021 دت ق ل صي شطب صمتظ تيةب (.دس أدز هذص دمم صمى ظل م ف ن صمي ص صغ صتست صد ب صمعة ب ودصمل صبم صمة ئ ب مت ف ذ صمى تش م ن صم ص ن مرفصماب تل صمر صخ دتع مب صم صف ب صادصدغ ا صغ صمريتللة ن د(.du et al,2021آثصم ئ ب وصمم ف فلى صمعة صغ متة دصمرعل ب (. رص صادصدغ صمضل ت صم دم بzhou et al:2021 ملريتللة ن فظ ف ن صم د، صمى تفض قغ (.دص فةس هذص صمتفة فلى تلصفب صمش صغ wang et al,2021 صمفةيظ فلى صمة ئب أث هص تُع أد فمتاف صتست صد ب لص رصم صت أ صفلص صختقف صم صبن امىفلى دتفض قغ صمعة ب صمل صبم مت صفظ صمة ن ص ةفصث ملع ن فرللص أ صم ب دمر ص ةب وتة ف ملرعصفقب فلى ش ف تلص صمراترف ب صم .( zhou et al,2021 صمت سفصغ فظ صمةصاث ن صمرة ي بخخ ددم فليفتلد ق ب رص صت م دصمفصفل ن صمت ق ر ن يف ن ملع ، فلى صمش ف ب فظ ئتلل فلى صن صمر قرصغ (mignerat and rivard :2009ر مهص ص ت رةن صن في ا شظ ع ث ملر قرب صم ق ف مألففص، صم ش م ا ةفا ملل صم ة ، دورصن صمة ص فظ صمر ز صمط ا و ا ا رص صمة ئب صمرة ي ب صمتظ تع صمفصفل ن فظ صمر قرب و دصن ملر ن و ا فل ص صن ا د صبا تيخذ صمعيةصن ف م صم ش صمذب شي دصخا وصمتلل صمتل صغ صمل ةل ب دصميل ب تيتر ن صمعصمصغ صمت ق ر ب ملش ف ب دم س ف صفتخةصمصغ صمر م صمت خخخصفي ب دصمةفص م صمر ت ةب . american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 49 www.americanjournal.org ( angest et al: 2017صمرة يظ فلى مأز ق م خد صمر صماض ص .فظ تفي أ ةصر ص فصع صمش صغ ع ت ب صمرفل صغ فلى تيث ئب صمر قرب صتمترصف ب فلى شصتصتلصو دصمرة يصغ هظ صفلى صمل ص ا صتمترصف ب صمتظ تع د صميل صغ دصمل ص ا صمر ص ةب ملر قرب مةظ تفرا. دفظ ا ا ب رلب ن صمر قرصغ د صتب تأ ((dimaggio and powell: 1983دصمض دم ب ط ن صبلص. د صمدهص دسص ل صغ ش ف تلصو ة ن فلص ص تيصر صمرة ي بوصتاص صإلم ص صغ صمتظ ترة لص ن يص م صمضل ت ه ص للصو أد دن صش أد تي ا (tolbert and zucker: 1996)دأن أفضص صمر قرب ةل ص د تةف ص صمرفص صتمترصف ب فلى دفق ص م ر دتتف ا م دم صم سب مت ةم أ ص ف د ص رفلص دت ل او دت شي صم صف صمرة ي ب ملةفص م. ن ف لل أ ث د يف ن ملش ف ب ة ص ت ن (. د ة د رص ت مو صن صمش ف ب ه ف ع مب فظ صمر ق م صمرة يظو د angest et al: 2017 ل ك ص ب ملش ب ن أرعصر صمر صمم. لصأففص، صمش ب دت ةل ق م دممب يص م د فطظ صمر قربو دت ف صم ق ب مؤ ب ب د ف م مة ف ب تاص س صمر قرصغ تعب صمق دف صتمترصف ب ص ا صمق دف صمت صفي بو أا ص صً يةب صدم صم و و فلى ع تافا صم صمئ فلل صي ةصر صمةص ب دمص خصمم بو دأا ص صً ن دصخا صمش بو مت ل ر مم ت ط ب فلى ث ن أد صمش صغ تيفى ةا ص أدت ب ن س م معرص ب ش ف تلص صمتظ تفرا فظ ئصغ ة ي ب دص فب. دتة فلى أن صمش صغ تاص س مة ف ب تاص س صمش صغ تعب يصغ دأرعصر صمر صمم صمرع ط ن لصو دت ف صم ق ب مؤ ب ب د ف م تعي لص متلة ب ت سفصغ صمرة صمضل ت صتمترصف ب أا ص ص يب صدم خصمم بو دأا ص ص أخ ز ن دصخا صمش بو د رةن أن ت م هذه صمضل ت ص تةصه صمش ب ف ص hassandoust et (2022, ن صمش صغفن صيدص صتست صدب مراتلف ف صر صمررصم صغ ثا صمتفلل صمرل ظو دصي شطب صميصب م al .) ( 1صمشةا صتفت صوظ مص ب اط صم ( د ن اصد ب مرخخ ِه مت ظ ف صم ق ب صم صمةعا فظ دمص خخب ص خختاص ب jurez-luise et al , 2018دفلى صم مك أشخخصم صمشخ صغ ملضخل ت صمرف دوخب فل لص م ة ن خل لص يخت رص ئ ص امى أ لص تشخ دتفيخ صت ختاص ب صمت ق ر ب ملرشخص ا صمة ئ ب دتيخصف صمرفخصه ل دصمررخصم خخخخصغ صمرت فخب صمر تةطخب لخص رخص مفخا خصاث ص أ قرخب فظ فلل ف خب خص صمترخصع ا ، ف ى صت خخخختخ ص خب و دتط صمضل ت صمرة ي ب صإلم صمو صمت ل وصمرف صم ب صم فظ صمة ئظ ص ص تة ظ ت ب صمرفل صغ صماض ص تل صغ وص طب صمفر وصم ع وصمريت ز صمتفل رظ american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 50 www.americanjournal.org صمرفل صغ تة دن فل لص متفيخخ صي خخةصر صمتظ ت د شخخ صغ ف ب امى تة ظ ع ن صمررصم خخصغ صمة ئ ب و دمذمك في ص فتر فل لص رفل صغ صماضخخخ ص .دأ غ ا صمصغ صمةصاث ن فلى ف ب مة صن ة مصغ صتاصه صمر ن فظ صمشخخخ صغ ف ب صمةعا امى تة ظ ت ب صم تشة ا صمفرل صغ صمت ق ر ب ن سةا صم ز صمرة ي ب صمتظ تف ا صت تر صم ب دتةصفئ صت تثص،. د فت ض فظ دمص خت ص أن وخل ت صمرة خيخصغ تةدب امى ص ختاص ب صمشخ صغ وخم صمتطة ق خصتب خلق صإلايخصس ضخ دمم مضخخخل ت فن ت ق تة ظ ت ب صمرفل صغ صماضخخخ ص دتة ص م ع صمضخخخل صمريخخخل فل لصو د رف ى أ ث دسب صن صماضخخخ ع امى هذه ص صمضخل ت تيتظ ن صمعة ب دصمر صفيخ ن دصمفرق دصمارل م تةث فلى س صمصغ ت ف ذ صيففص، صمت ق ر ب دصمف ب صملصدفب امى صمتاف ف ن صغ اي م فظ صمة رب صمة ب ملش ب صم صمرب فن فرل صتلص صمراتلفب.صيثصم صميلة ب صمتظ تف اهص ت ب صمرفل م صت خختفرص، صمرت خخصف مت ب صمرفل صغ خط صً ة صً ترثا فظ ا صدم ص خختلقك صمطصسب ص خختر صم صمذب ة ن يخخةدتً فن صمرطصف امى صمريخخصهرب فظ تل صمر صخ. دتل ف ت ب ص ةفصث صملصاصغ صم ف ئب صمتظ تيخخةب وخخ مص ة ص فلى صمة ئب دتفضخخظ فظ لص ب ( امى تاف ض ص خخختلقك صمطصسبو دصت ةفصثصغ صمع صم بو دافصدم ahuja and muthiah,2021صمرفل صغ صماضخخخ ص فلى مأب يدصم س رب ت د صمطصسب فلى ع ف دففص،. دفضخخخق فن ص خخختا ص لص ط ب ف م ملطصسبو تيخخختا م ت ب صمرفل صغ صماضخخخ ص (. دمئن م غ ribero et al ,2021ملشخخخخ صغ صمتظ تيخخخخفى امى صتاخص خط صغ لرخب مت ل خا صمتخيث صمة ئظ صمفةيخخخخظ مفرل خصتلخص صم مص خخخصغ صمرةة م فلى دفظ صمشخخخ صغ ت ب صمرفل صغ صماضخخخ ص و دس صس مصه تلص ملصو فإن صم مص خخخصغ صمقا ب صهترب ص ص -dalvi ت لخب فظ فخ خ ن صمةلخ صن امى ت ف خذ صمررخصم خخخخصغ متف صت خخخختخ ص خب صمت ق ر خب متع ق صمفخصفل خب صمة ئ خب صمرخ ن متة لخصو دص esfahain,2020 دفظ وخخ مك تةعا صمشخخ صغ رخخل م صمعال فن أددصغ ت فل ص خخت صت ا ب صيفرص، صمتظ تعتضخخن أه صف.) تلص صم دم صمرلل مت ب صمرفل صغ صماضخ ص فظ صمع ن صت ةفصثصغ صمع صم ب صمتظ صمترصف ب و دصست خصد ب د ئ ب و دصس صمرف ن إدصم تع لص تةلغ صمشخ ب ه فصً ئ صً و دت ت ر ن صمل ف صتست خصدب دصتمترصفظ و د تاذ صم صم فظ صمشخ ب م ددم ة فظ هذص صمشخين و ص خب و لرخص صادصدغ م ةتخ فظ تة لخص دمخذمخك صادصد صهترخصم خصاث أ قرخب د لرخص خص خب ص خصه ع تة ظ ت خب صمرفل خصغ صماضخخخخ ص ا اخ صمرفل صغ ص ص تة ظ ت ب صمرفل صغ صماضخخ ص .د ةدب مص صمشخخ صغ وخخ ع صمتطة ق ددمص اص خخرص رخخفلل تاذب س صم ظ س صمصتلل و مدص ف رص ا ص ص ب داتى م ص ب ه صك وخل ت ة خيخ ب صب رخ مم ن رخ مهص صمثقث و فلةت لل يخت ل ن ف ثرب م ةب فظ تة ظ ت ب صمرفل صغ دت ف ذ رصم خخصتلص أم ت . دهذه صم ةب س تف ا صمضخخل ت صمرة خخيخخ ب أد تةةعلصو رف ى أن دفظ صغ ت خب صم خصمل فن قاقخصتللو دصتقفللو دشخخخخف مهل خصمرشخخخخص خا دصم ضخخخخص خص صمة ئ خب صم خصمرخب فن صإلف صت فظ ص خخخختاخ ص خ صمرخ ن صمرفل صغ صمر صم ب ملة ئب صمتظ ت م ن صملصاصغ صم ف ب صمريصهرب فظ صمتل ث صمة ئظ دصمتل فظ صمر صخ. صمرتل صغ صيدمىوأ صع ن صمرتل صغ ب( د تضخرن ثقث1صتفت صوخظ صمشخةا مص خبدتي خ ص فلى ص خةق م خل صمةصاا اط صم صمرتةم ددوخفب فلى صماص ب صي رن ن صمشخةا دتةث دف ص مللب تعل ا صمريخصم (.صمرف صم ب دصمت ل و صإلم صموصمريخت لب دتشخرا وخل ت فظ صمرتل صمتص م ص ص تة ظ ت ب صمرفل صغ صماضخخخخ ص ( دتة ن أ ضخخخخص مِ فلى ع ةصشخخخخ ا فلى ا فظ تعل ا فط صغ صمةعا أ ص صمرتل صم خ صم فظ صمة ئظ( فص ة ن (ودصمرتل صمتص م صم ص ص (و ةث صمرتل صم خ صم فظ صمة ئظ يخت قً صً تل ب اترف ً تص ف صً تل م دفظ لص ب صمرطصف اتة ه (. ةث فظ صمرتل صمتص م صم ص ص د م ة ن يخخت قً صم ،وملرتل صمريخخت ا رص أ خخلف ص ص صمةعا:دصآلتظ تفي مرتل صغ د طصً. صً تل رف *ضغوط اإلرغام م ص ن صمشخخخ صغ فلى دم صمفر م فظ صمرةصدمصغ صمة ئ ب ملع خخخ ، فلى ص ص وأد متا ب صمف صغ يخخخةب ف م صت تثص، لرست دم صبم اة ب ع دم .د خم صمرة خيخصغ صمعة ب أن تاة تلك صمشخ صغ فلى صت تثص، ملت سفصغ صمرة خيخ ب خصتب أددصغ صم صدم صمل صبم صإلم ص ب صمتظ امى(.دتشخخخ أددصغ صم صدم دصمتعةل jurez-luise et al , 2018د ب دصمتعةلو دأددصغ صمع صف صتست خخخص american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 51 www.americanjournal.org (وأ ص saeed et al,2018دس صف ث سب ودس ط ب ف م صت تثص، فلى ف صغ وتيخرم ملرة خيصغ ف ض س د ن خق، أدص ملشخخخخ خخصغ أخ ز صمع صف صتست خخخخخصد خخب فلظ ص ج ت ف خخب تيخخخخرم zhu and خخصمع خخخخ ، فلى صإلفخخص خخصغ ودص ت خخصاصغ feng,2013 دفظ صم سب صمذب شخخخخ د ف ق ن صمةصاث ن فلى أن صمل صبم صإلم ص ب ملص تيث أ ة فلى ت ب صمرفل صغ صماضخخخخ ص.) ه وخخخخ دمم صمخ ج ن و ز ف ق أخ صمفةس ي لخص ت ف ملشخخخخ خصغ سخ مص ص ة ن صمر صمد وداصد فلى مخك صم ، ف ق أخ تخي خ طصمةب امى صمشخ ف بو دتشخ صميخ ص خظو د شخةلبوخل ت صإلم صم ن صمتيث دت شخيصميخ ص خت ن ت ختةرص، صت صمضخفف دصم م لرص. صمتظ وخخل ت صإلم صم فلى تةلل صمة ئ ب. دا رصأد صمرشخخصم ب فظ ص ج صإلدصمم صمة ئ بوصمعة ب صمشخخ صغ صت تثص، مل ص ن دصمل صبم دتيث صمشخ صغ صمتظ تفتر فل لص صمشخ ب صمعة بودصمل صبم صم ص بوفصن هذه صمضخل ت تيختر ن صيدص صوتتف ض ملص شخ ب .تة ن صمضل ت صمرة ي ب فلى شةا و دمم ت صفي ب (. دس (dimaggio and powell,1983 ثصم صم رف دمةن م س ا خ ص تة فظوصن وخل ت صإلم صم ترثا صم م صمرا مب صمتظ تل ت ف ذهص شخةا (.hassandoust et al (2022,فند دتف صمفص ا صم صوخخخخم صمذب ةث فلى تة ظ صمررصم خخخخصغ صماضخخخخ ص ن سةا صمعة بومل ئصغ دص صمعة بو ن سةا صمتف ضخخخخصغ فصن ف م تة ظ رصم خخخصغ ت ضخخخ ب تعب م ص ت ب ث صو عففلى خخخة ا صمرثص، دفظ اصمب دصمل صبم. فص صم صف اصمشخخخ صغ ن خق، ف صغ سص ب أد ااب صمريخصف صغ امىتف ض صمشخ ب امىصمرفل صغ صماضخ ص ملع ن ت ص صمة خرب صمة ب ملشخ ب س ةدب ةص خخب ن فرن مص ب تعصد، صمع خخ ، فلى عا ودصمشخخ صغ صمرلت ب صإل فصن مضخخل ت صإلم صم تضخخ ر ف خخف م ن ف لصو فن ف م صت تثص، مل ص ن دصمل صبم بف صغ صمر امىد ن مص ب أخ تتا ب صمتف ض طصمةلصوصمرة خخخخيخخخخصغ صم صفذم فظ م يخخخخص صمضخل ت صم خر ب د صم خر ب صمتظ ترصمس فلى صمشخ ب ن صإلم صمدترثا وخل ت (.saeed et al,2018صمعة ب صمرع دم (. دفظ فض maudre et al,2021 صمت سفصغ صمث صف ب فظ صمراترم صمذب تفرا ف صمشخخ ب فل لصو د نسةا شخخ صغ أخ ز تفتر صت تثص،و ة ب تف ض فل لص صيا صن س تة ن ص خختاص ب متة ظ ت ب صمرفل صغ صماضخخ ص ةصشخخ م ففا وخخل ت صمرب ن صمل صبم صمع ول أرعصر صمر صمم مك ددندصمفرق دصمراترفصغ صمرعل ب. د ف ظ صتتعصدصغو دصمرة يصغو دصمرار فصغ صمة ئ بس تيتظ ن أد م ص صغ صإلدتقل هذه صمضخل ت اق فظ خ ة ن ن صمر مم أن تتة ى صمشخ صغ وخم صم مص خب ت ب صمرفل صغ صماضخ ص . صمتشخخخخة لخب امىضخخخخ دمم صم خخخخ ز ملراخصدف صمة ئ خب و دافخصدم داصمم صمة ئخب صمدتخي خ هخص فلى ودصمرعل خب وعة خب صمف صس خب صتتعخصد خبصم صم اصم ب ف صن د اب اصمم صم خخعب متت مى ت ق ل صمتشخخ فصغ صمعة ب مضخخة دصميخخ ط م فلى صمتل ث صمة ئظ سةا صن ا ج فن لص فظ فصماب صمرشخخخخص ا صمة ئ ب بةصدئ صمت م ل ب و دصمتف ضخخخخصغ و دصمف صغ و دصما صب م ةصميخخخخ ط م و د صمففا أرخخخخ مغ صمر صمريختفالب و د ن ثل تت سم صن صمشخ صغ ف ب صمةعا عةل صمتةصتلص صمرةصشخ م د صمرةصشخ م صمعة ب دم غ فيخلص ل ب تة ظ ت ب .صمرفل صغ صماض ص ملع ، فلى ش ف ب دم دهص دتصمرص أن تة ظ ت ب صمرفل صغ صماضخخ ص ُف أا صت خخت صت ا صغ صمرتصاب م ز صمشخخ صغ ف ب صمةعا مر صملب صمضخخ م صماة ا صمغ صيهر ب ملشخ صغ ملعفصظ فلى شخ ف تلص صً صم صمل فن ص ختا صم ت ب صمرفل صغ فإن صمت صفق م صمت سفصغ دصمرفص صمرة خيخ ب أ ( ي ف ص ت م ش ب ص ا ص liu et al:2010صمر صمد صم صدمم صمرلرب .دش د امى ، خخخخخخخخخخخخخخخ ورصن صم ر ن ثل و د فظ هذص صمراص، ص ب ختتة ى ص تةصًمص ص و فإ لص ختعصد، صمع خ ، فلى فل صغ تتفلق صمت سفصغ دصمرفص صمرة خيخ ب و دص ختا صم صمرفل صغ مت ل فإن صمشخخ صغ ل ب صخت صم ت صغ ثملوترصدهو دتل ئب فيخخلص دف ًص مذمك ملتع ت وخخ ف م صم ن . د ن صمتةصم ف دصمف صب صمرعترلب تف أ ث أ ص ًص رة لص صتمت صم صمضخخخل ت صتمترصف ب تً ن صمف صب صتست خخخصد ب. دصمر طق صمرة خخخيخخخظ ف دملصغ ق ق ب متعل ا alziady and enayah et al,2019 ; chen et al,2010 ; abdul مص خخصغ دصتف ب دفرل ب صت تثص، مشخخ ف ب صمر قرصغ. azize et al ,2017 )صمراتلفب دت ب صمرفل صغ د رصم خخصتلص أمرصتوتيث وخخل ت صإلم صم فظ تة ظ صمررصم خخصغ صماضخخ ص مىص ص.خص شةا american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 52 www.americanjournal.org لضغوط المعياريةا* صمش صغ فلى تُ صمرة ي ب صم ق ب صماصرب اقف دم د لصأ م ملص ث صفتلص دس رلص مإل تصجو قرب أم ن قصم صمترصفظ ة ى مر م صمش صغ تدا رص ت صماصمم بودصمرفص دصميل ك تعب تيث صمة ئب صمث صف بودتفتر صم صمصغ صمت ق ر ب فلى ر ن صم ل صمش ف ب فلى إلوفص عصدمب ا لص لص ت م فلى يتتاص صم صم ف صمرة ي بو د صخا ف ب ع ع د ن صمررصم صغ بفظ ر صف صمة ئب (. saeed et al,2018فرللص صمة ئب فن ت سم ث صفظ متلك صمرف صم ب هظ ت اب م صف د فص رص تلص دت شي ودصمضل ت دصم دص صمرل ب دصمتاصم ب صمتظ تل ملةلص ودصتتعصدصغ ودصمارف صغ و اصهصغ صمرار فصغ صمضل ت صمرف صم ب ن تة ظ صهج دصت دصمرل ب ه ص هظ وصمش ف ب فلى ص ت قم تلل صمرل ب إلوفص تع ت صبق فرللل امى يف نصمذب صمرار فبتلك أفضص ملش ب ن دم وصما د صملذ ن خل ن اصملل صيفضص دصمتعةل فظ ر ب د ف ب وفرا دأ صم بمتا ش دت صمرار فب يفضص مل تفصد ظ يث ص دصمالصغ صمض دم ب ود ص صمت م ب و ن صمرل ب ه صمتفلل صم رظ دصمش ف ب صمتظ الةلص صمتفل ل دصمرة يصغ صمتفل ر ب صمرعت ف ن شلل ن صرب رصثلب فة ار ف دص ف ن صمش صغ ن صمفص ل ن بدهذه صمت ق رصغ ت شئ ار ف وصم صف صمت ق ر ب abdul azize et alص ث تشص لص د ال ن ش صغ دمهص تالق ار ف فص ل ن سص ل ن ملتةصد، صيف صدد يةب ت م ةلل ةم و د في دن صمي ص صغ صم صبرب و تشص لبد ط مدن ص ج و فيلصد ضف ن صمي ص ب ون فلى ع تشص ق صمريةدمد( . 2017 , صمت م لصغ صغ صم لب صم ضص ص ف صداد ن فلى و صيخض صمتظ ت ش صمفة دصم فظ صمة ئظ صمرار فبدهةت هل و شةا تشص وصغ دصمارف صغ صم صف ب صمضل ت صمرف صم ب ن صمرتا ن صمرت صف ن م صمرار ف تيتظدس .(hiatt et al,2000صماض ص ً دس تل س صمرة يصغ صمتفل ر ب ل و ت اب مضل ت صم صبن أد ً ف ف ص ة ن ملرل ن دصمرار فصغ صم صف ب دصمر قرصغ س د و ص مصب صمر و ع فظ ر صف ف صمعة ب لعب صم صس و فص ب صمضل ت ددم دصم صبن ودصمر مد ن ود ذمك تشة ا فظ أن صمضل ت صمرف صم ب فلى صمش صغ صمرع م ب امى( zheng et al:2013د ه .((dimaggio and powell,1983 صمرف صم ب صم صمرب صمتفلل صم رظ رل بفن صمهظ صمضل ت ملتةصد، ن خق، صم ص ل ن صمفص ل ن وففظ دصخا ا ر صفب تل تة ن ار فب ن . د ن أما تا ب صغصمش ن صمتشص امىصمتظ تر ا صمضل ت صمرف صم ب عصف تفترصد أ قرب صمرفل صغتفرا دصمشةةصغ صمرل ب ود تة ظ ت صغ امىفلى يص م صمضل ت صمرف صم ب دتر ا صمش صغ فراصمر صمد ت امى فلص ن صمفقسصغ صمتفصد ب دمضرصن صم ر ، (. liu et al:2010 تلك صمضل ت ع ب ت ةتة م ا ص فظ رر ل صهترص صغ د م مك وصمرفل صغ فظ صمة ئبتة ظ ت ب صمرفل صغ صماض ص مت ض صيو صم صميلة ب صمتظ تيةةلص ت ب د تل صمرعلظ فظ صمر ن صمريت ز فلى صمعال صمرةصدئ دصمفصمرظوصمش صغ رل م فصدم ص ب د ضف ن صمت م ل بوفص لل ن صمرفص تةث فلى صمتظ دمهص صماض ص صمرفل صغ ت ب مت ظ ف رصم صغ صميص وت صبق فظ بدصم ل صمرفص صمش ب. م ودهذه ده صك مصن لرصن ملترصثا صيد، تارفلل.دصمرلت صغ صمتظ دصم دص و صمرل بودصمرفت صغ ت تش ص تشصمهص فظ صمارف صغ ودصم ل صم صف م صمرف ف ب صمتظ أ تالص تا ن مص ف ن ودصمثص ظ ر دت م صمشةةصغ يتظ ن صمتفل ل صم رظ وداوفص صمش ف ب فلى صما م ي فب صم رص ج ت تش فة هص صمتظ صمش صغ ترت ن صمتظ تلفب (maudre et al,2021صمرل ب صما ص هذص .دفظ صمفص ل ن صمر ن د ظف لل وا ا أن صمر ن ة يصغ صمت م ب صمرل ظ ددمص ا ص فظ تط صمرفص صمت ق ر ب ن د صماص فصغ صمي ص صغ ف ض صمرشةقغ ط ب رصثلب ود دن امىد عرل ن رصغ شت ب ر ل ن وصمذ ن ا ل ص فلى تفل ل ن فس صماص فصغ صمرف صم ب ( صمضل تchen et al :2010تاصها يةبداذدن صم صم شي لص فلى ع تشص . دصمل ص ا فيلص د ت دصإلم ص صغ ف ول ت صمت ل ن ا ا تيث هص تيتظ لصا صثةب (abdul aladheem,2018)دتيث هص فلى تة ظ ت ب صمرفل صغ صماض ص فصن صمرالفصغ صمة ئظ ن ملتالد صمعال صمش صغ رل م .صم صب( هذص abdul azize et al :2017ف ا صإلمةت د بوفلى تة ظ صاده غ رصم صغ ت ب صمرفل صغ فإن هةت صيف صد شةل ن صميل ك صمت ق رظ. فظ ف صمرتشص لبود قً ص مت ملصتلل دت فصتلل american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 53 www.americanjournal.org صمر ن صاتق، صمر ن صماض ص يةبس تل صمضل فلى صمش صغ متة ظ صم صمصغ صمتظ ت دج متة ظ ت ب صمرفل صغ صماض ص و ص صهل. دب صمالف ب صمت ب دصإلدصم ب صمرة ب ض دمم صمت ب ملتل صغ صمر صخ ب رص م تيث ة فلى ضغوط التقليد *ِ صمش صغو مك صمت ر ل ر ض أه صف هذه صم اص و دصمش ف بو د ةب أُخ و تتيل ت رل صمش صغ فيلص فلى صم ش صغ صمة ب صمش صغ ن ف د سل ا ن أس ص لص صم صمع ن ن خق، صسةب ص ن د ص اب دس تيتف . ل غ صم ن صمة ئظ دف م صماض ص و دت مرب فت صتلل صمرفل صغ ت ب صمريتر م ن صمف صب س م شين صمت ل د أففص،. امىفل لل chen et أب ع ث al,2009ا رص ت م صي ة و أدصغ ث صف ب ف ب ن صم دصب صمرل ب أد صمراترم صات صم ت سف امىتشف صمش صغ ص لص ضط م ( ف ص صمرت صف ب فلص. صمش ف بو أدش ب ص ت ل ل ك صيخ صغ ف ص دمص صمت ل ت اب مف م د صمررصم صغ صمذب صمتي تقل ول ت صتبمتا ب صمراصت دف م صمتي أخ زصمر ا ع ت ل ش صغ امىدت فم ول ت صمت ل صمش صغ غ شام فلى صمت ل ن صمش ص صمش صغ أد تة صم فرل صغ أ يخ صمتي و ة ن م ش صغ ف ب أن تة ن د صم صمعب.د ه ص ا صمة ئب اصمب ن ف م ا رص تالق ً ر م أد اصاص ودس تل ش هذه صم رص ج ن س أد شةا ةصش ن خق، مش صغ أخ ز فظ اصملص ت ز أ لص أ ث ش ف ب ص دس ت ل ش ب (maudre et al,2021تشصم ب وأد صتتعصدصغ صمرل ب خخخخخددمصن صمفص ل ن ن صمش صغ وأد ن خق، صمش صغ صت صمة ئ ب صمق دففظ وا أخ زتف ض فلى صمش ب صمتشة ش صغ مدهظ فرل ب ودهذص ص يرى صمتشص و أخ ز ل ك ش صغ تل ة فظ صمة ئب صماصمم ب الق أبا دث بدفصدم تةعا صمش صغ فظ اصم ود دن دفظ أ فظ صمتشص د رةن صن ع ث و فيلص د أ ب خخخخخخدمب متف ا فيلص دف ص متلك صمش ام فظ صملب صمتع صغ صماصمم ب فظ عص أفن ر ج عتذز تفت صً ة صً تل ود صمررصم صغ فظ اصتتلص صمرة ي ب أ م ول صمت ل ا رص ت ل ش ب ص صمرفص .د ( saeed et al,2018 صم ر م بصمش صغ فقدم فلى وفظ د طلص ملص رصم صغ ملش صغ صمتظ ت ل هص ل ف تف سةفلى مألفةصم صً دتفرا صمش ب صم ر م ب رفلص م ت و مك صمش صغ ضفصدم ص تف ف صيخ صغ امىل صمتظ صمر صفس و اصالص صمررصثلب صمت ل رصم صغ م لص دتعف ول ت ن ول ت صمت ل صم أب صم صبا أ( 2018 ,دمص ب صم صدب فض غ .د ( zhu and sarlsis,2007 صمعبد فتة د لص رصم صغ صإلمةت د ب رفلص س ز وص ط ت فم صمش صغ رل م صمعال فظ عصفقب ب سصم ملتالد صمة ئظ ن صمرالفصغ صيد،فظ صمر صم تيتظ ن ول ت أ( elziady and enayah,2019دمص ب ب فلى صم مك و رصم صغ ت ب صمرفل صغ صماض ص زصمتظ تف صا ( مل تة ن دم د صث ف ب مضل abdul azize et al,2017ن دمص ب أ .ة ظ ت ب صمرفل صغ صماض ص صمت ل تةث فظ ت صمش ب صت صع ملذه صمضل و دفلىصمش ب ة يصغ ترصمس فل لص دممب ف ب ن ع ص ت م ت امى .رةصدمصغ صماض ص صمت ل و ( ثقث صاا ميل ك صمش صغ xia et al 2021د (.scott:2001صمش ف ب صمضل ت ا ص صن ملص أن تتل ى صم فل دت ص، صتمت صم دصمريةدم بدتشرا دصت تاص ب صتمترصفظو صيخض صتمترصف بو صميل ك دهذص للر ص شين دا رص صتمترصف ب ملش بو صمتل . رف ى آخ تشةا ل ك تة ظ امىش ف تلص تضفف دتتف ض صمراترف بو فإن ع ف ل ك صمش ب فن صمل صبم دت م صم ل تي يص فلى ص ت م رصغ صمةصاا ف و ب د ف ن.ت ب صمرفل صغ صماض ص ن خق، ول صمل صبم د قصم صم ل صمذب لت م اترم صمةعا صيدمى د لص: فظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص ف صمر ن ت م فقسب تيث ف ب ملضل ت صمرة ي ب فلى ص ص 0.05(α≤ . د تف ع لص صمف و صغ صمف ف ب صيت ب: فظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص صمر ن ت م فقسب تيث ف ب مضل ت صإلم صم فلى ص ص -1 . ≥α)0.05ف american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 54 www.americanjournal.org فظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صمر ن ت م فقسب تيث ف ب ملضل ت صمرف صم ب فلى ص ص تة ظ -2 . ≥α)0.05صماض ص ف فظ صمش صغ ف ب صمةعا صمش صغ وم صمتطة ق متة ظ صمر ن ت م فقسب تيث ف ب مضل ت صمت ل فلى ص ص تة ظ -3 . ≥α)0.05ت ب صمرفل صغ صماض ص ف الوعي البيئي * ص ا صمى يتللكصمرفل صغ رةن أن أن سطصع ت ب (ojoaa and fauzi ,2020 ش غ فط صت دمص ب شف ت 2040٪ ن ص ةفصثصغ صمة ن صمفصمر ب عل ، فصم 14و د تج أ ًضص 2025 عل ، فصم صمريتللةب صمطصسب صمفصمرظ ار ع ٪ ن 20 ص مرص عصغ صمض ب ب ص تا صم صمع ص ب و دصما صدمو صمطص فصغو دصمشصشصغو دصمشةةصغ ودأددصغ دأمل م تا ن و دص ت م رف ى أن صم . دصمرف صغ ودصيمل م صم يخ تشل للصصمتظ صمر م ب خ أمل م فظ صمرفل صغ ت ب صمطصسب ت خا ص تلقك فظ و ت ن صدم دا صدم صم ل ا ن أ ص صرا ص تا صم ت ب صمرفل صغ دصتت صتغ م فل ةا ف ش ص م دددن صإل صا فظ صمتفصر ا و . صت ةفصثصغ صمع صم ب فلى طصا دص م. صيف صد ن ش صم فظ صمة ئظم صمتع ك م دهذص ص أ لى فلى أرعصر صمشين فلى صمة ئب. تيث هص صمضصمصتهترصم د تط م .(koo et al,2015 د ةم صم فظ صمف دب ن صمتا ب دصيففص، صمرفتصدم صمتظ تل ادمص لص ن خق، د صبا صإلفقم صمراتلفب دصخا صمعصمب صمرف ف ب ملف د و د ترصشى م صيفةصم دصمرشصف صمر تةطب شصت ف ن. دأظل غ صم مص صغ صميص ب أن صم فظ صمررصم صغ فلى ة ا صمرثص، و . (asadi et al., 2019) يل ك صيخض خخخخخخخخخخخخخخض ص رةن أن ةدب امى ت م ا اص ظ ع تة ظ صمخخخخخخخخخ صما صمتالد صيف صت فظ ص تيلقك صمطصسب وأد صم ما وأد ن مألشاصص صمذ ن م ن صمتيث صميلةظ ملررصم صغ صمريت ص ب ثا رة تط ا رصن س ب صمذصغ دصمت صم أخقسظ تتاص صإلم ص صغ صمر ص ةب ملع ن هذه صمررصم صغ صمرالفصغ صإلمةت د ب صميل ل ن أن أدص ل ك ف ن ةث شةا لةظ فلى صمة ئب و فإ لل ر ل ن امى تا ب هةت ف ص مك د. لى ق ب صمة ئبصمتظ ت فةس ا اص ص ف تشةا س صم صمف د تة ظ صمررصم صغ صمرة م ملة ئب ن خق، صم فظ دصمرفت صمذب .(ojoaa and fauzi ,2020) ثا هذص صميل ك .(molla et al,2014 شي ن تا ب ص ب امى صإلم ص صغ صم ص ب رةن أن شةا أ صس صت تا صم صمر صمظ ملة ئب ان صم فظ صآلثصم صمضصمم ملت ه م صمة ئظ صم صمل فن صمة ئب. فلى صميلة ب مرةصدمصغ صمت د جأن دتصمرص صمعفصظ صآلثصم مرةصفعب ارلب ص ةب اتقا صماض ص صتب صمرفل صغ ت ب ةدب امى هل صمرفل صغ صم ع عب م ة ن ص تفرصملل ملص ةتة و لذصصمرف ن و دصتقع ت ب صمرفل صغ فلى صمة ئب تا صمت مةصاث نو دصمراترم صمر ظ ودصمررصم ن فظ صم صفب ص ع صهترصمت ب صمرفل صغ صماض ص ف أرةعبدخقا ود صمظ ملة ئب صمة ئب. رص ت ف ال ، م د يدصم س ب رة لص و % ت ةص ن ار ع صملصاصغ صم ف ئب2 صمهًمص ددًمص فص ا ل ث ا تيصهل رص دد و لفةلص .(imasikuet al,2019 صمرفل صغ ت ب ص تا صم تطة صغ % ن صملصاصغ صم ف ئب صمر ةفثب ن اتلف صم شصتصغ صيخ ز98 صمر صم صمرب فن ض دمم تاف ض صمة رب صمة ب ملر قرصغ ن صم فظ ت ص تفصمب صير صغ دصف ب صمى دتي يص فلى ص ةق ا صف فلى فلى ع ط ب صمرفل صغ ت ب صمة ئب ص تفرص، فلى صميلة ب صيو صم أد ل لص رص لا nabila and و subriadi,2022 صمة ئظو (.د صمت ه م دصت ت صف صمي م ملر صمد صمطة ف ب صمذب ا ث فلى ز صمي صغ ت ق ة ن تاف ض د عصدمب ص ت ص صميص بو متف صتست صدب بدأدص ش صغصم ف مب أفصد (.asadi et al,2021لص xia etدفلى صم مك al,2021 )صمة ئ بو صمش صغ صمتفص ا م صمضل ت صمط صبق صمتظ تيتط م لص اا ز صن تة ظ ةصدمصغ ت ب صمرفل صغ صماض ص هظ امى صمريصف م امىيخذه صه صمع ظ د د وت صف صم فظ صمة ئظش د صمرف ن فلى أن د صتست صدبو دصمة ئظ.تعين أدصبلص في صم سب دفظ صرةم صم فظ صمة ئظ صمذب .د ذمك تة ظ ت ب صمرفل صغ صماض ص فلىت مرب صمضل ت صمتظ ت صملص صمش ب صمتظ ت رلص فظ ق ب دت ف ب وملة ئب أ زصمتظ تيةب صيو صمدصم صم صمررصم صغ صمتظ تيصف فلى ت ل ا و عرا ن ث ص صه صمشف م صمريةدم ب تاصه صمة ئب american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 55 www.americanjournal.org ر م م صً ص ظ مص ات وفظ صمة صن صمرتط مم ج ضدصن و صفب صيرف مفلى صميصخ بتع ا لص ن صمر صو م صمراصت صمتظ خ نصآل صتست صد ب صمتظ صي شطب م ا صدم صيخ م صآلد بد أ صمتع ك فظ و (elziady and enayah,2019 ت لب فظ صمةل صن صم ص ب تط فب د ص تة ن تل صغ وا صدم يةب يصهرتلص فظ صملصاصغ صم ف ب صمريةةب مقاتةصس صمع صمب دوت خا ت ب صمرفل صغ لص jurez-luise et صن ات وصن صمت ه م صمة ئظ ف تلظ را د ش صمل صبم دصمة ص صغ صمر صر م ملة ئب امى فضللدمئن مدج و al , 2018)فظ ث ن صيت صن امى أشصم صمة ئ ب صم ص ب دتت صفق م تط مم صيا صنصم ص ب دصمي ص صغ صم د، فظ ف ن دت تش صمررصم صغ وملتل صغ صمة ئ ب فظ صمر صخ صمق ةصتمدف م وصمة ئ ب صي بصمة ئظ دت تش م مك يتر صمت ه م وصمرفص صم دم ب فظ صمش صغ إدصممصمتع ب صم ب س ه ص ةرن فظ وفف شصم ب صمرف ن ةرن د وفظ صمتفص ا م صمة ئب صمتظ تفةس يت ز سصتقً .ش صتللصميل ك صمر صمظ ملة ئب دصمت د ج م دصخا صمذب ط ب فلى ف م ف فب اط مم صتاتةصس صمع صمب وصمة ئ ب صي ب( ه م ن ع lui et al,2014ف دصم فظ صمة ئظ ف ص مرص مص فلى ميصن دد ودصمرلصمصغ ودصمتعف و فلى ص ج ن صمرف فب هُ م د ن ثل ودملا تيث صغ صت ةفصثصغ صمع صم ب ham et al,2016 ) دصم فظ صمة ئظ وصمة ئ ب صي شطبدم ةت صمرشصم ب فظ وصمة ئ ب صي شطبس مم صمف د فلى فلل صمفقسب ن ه ف تا أ و صمرف صهدفلل و اتلفب ن شص ا صمتل ث صمة ئظ ي صعه صدمصك صمر ملرشص ا صمة ئ ب رف ى ص ص صن صمر فلى دمص ب د تة ى رصم صغ ضفلص ف مك وم صمتطة ق معرص ب ود ارم فل صغ فن ف ب ارص ب صمة ئب وفلى صتهترصم صمرشص ا صمة ئ ب صمة ئظ وأد ُت سم ن صيف صد دب صم فظ ددصم ق ص . وصير سص ددم ش ت فظ ارص ب صمة ئب م تف امىدم رص د هذص وصمة ئب صمراترم فلى صمة ئ ب صمرشةقغ تيث ا صتلل وصمذ ن م ن فظ ا شصت ن شصتصغ ملة ئب فلى ع صمظ صمت ف دأ فيلل صم صمرب فن دفظ عث ص ف . (murageson,2021صم ب صمرفل صغ د ص ف صتصإلظ فلل صمرفع ر ن ملرشةلب فظ ص تا صم ت ب ن صمعا م ل لص ةب صمرشةلب د رف ى صً د صمتصمظ صمت د ج مت ب صمرفل صغ صماض ص رفلص م صمة ئبو أو صم ف ن ف ي دفظ و صمرعصدمم آ فب صمذ صماض ص .صمرفل صغ ت تة ظ امىصن ا صدم صم فظ صمة ئظ صمتظ ت ده صم ز صمرة ي ب ةدب خ آ ب ف و ب صمةعا صمثص ب فلى: . ≥α)0.05ت م فقسب تيث ف ملضل ت صمرة ي ب فلى صم فظ صمة ئظ ملر مص فظ صمش صغ ف ب صمةخعا ف دصمثصمثب فلى: فظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص . صمر ن د ص ص ت صم فظ صمة ئظ صمفقسب ن صمضل ت صمرة ي ب وايا تبني تقنية المعلومات الخضراء ن* د فص مو ص تةصمصً أ ث أن ت ةم ا ة تلص نصمعالو رل م ر دتط م أدص صمش صغ تلفب ت ب صمرفل صغ ددمصً س صً دف صً فظ شص ا دتدم صهرب فظصم سب في صمطصسب. دفظ صمرةص ظو دت ا م صمل ميت بو دادصمم فلى ت ش صات صمصغ صم ا دصما صغ لصتد صف مب يب صيدادن. ئ ب دتآ ا تة ب صمطة ف بو صمر صمد صمع صمبو د ض ر صتاتةصس صمرفل صغ م ةصدمصغ م مك ثا ت ب تل تة لص صمففاو صمت ب مذه صمرشص ا صمل صمرةصدمصغ فظهذه ادمصك أهر ب رةن دت صمرشص ا.ذه ن ه ما ة صماض ص صمت ب عى ف ، ت م ملر قرصغ فصماب صمذب ُف ن صت تةصه فلى تة ظ ت ب صمرفل صغ ن صمر قربأ دتةفص مذمك ة د ن صمض دمب ( تة ظ ت ب صمرفل صغ ي لص teo et al,2003ددرف (.asadi et al ,2019 ت صدبخخصمرشص ا صمة ئ بو دتعي ن أدصبلص صتس صمفرل ب صمتظ تل ن خقملص ت ر ا ت ب صمرفل صغ فة س صغ ف ب ر دم صم سب ن أفضص صمر قرب. دتع غ ف ن صم مص صغ صمر ق م صماض ص ن صمرفل صغ مت ب صمت ق رظ صمتة ظ دصمة ئظو دصمرة يظصمت ق فن دصمت ظو صمتة ظ ف ب رظو دمصك ا. د لطظ صمتة ظو دصم صم شصتصغ سةا اص مو صيدمىفرل صغ صمتة ظ فظ ثقث صما مو دصست صبلصو دتة فلصو دص تا ص لصو دت م صمر مألفةصم م مص صغ صغ صم لب تة ظ ت ب صمرفل صغ ص (. دش دغmaudre et al,2021 ص ف صمتة ظ صمتة ظو د شصتصغصإلدصمب صماصص american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 56 www.americanjournal.org صمرةصش صميل ك صمففلظ ه دصمرت ةئن صم ص ص ملت ف تف أفضا ةش فلى صميل ك صم ب ت ل صمت ب فعيبو أصماض ص فلى صم ص ص ) (fishbein and ajzen , 1975درف صمب يدص صميل ك. د صمريةب صم ص صصفت وب ق ب صمففا صميل ب. دس صم ص ص مإلت صن صميل ك صاترصم ب س صم صمف د يب ل ك. ( د ضر ن فة تلص صن تة ظ ت ب صمرفل صغ ajzen,1991د ن صم ق صغ صمتظ فصماب هذه صمرييمب ق ب صميل ك صمراط صميل ب. دصم سص ب صمذصت بودصمرفص دصتتاصهصغو صم ص صوي ه دصمت ةة صتب خصمر ملتل صمذب رةن تصماض ص ت ن ص تف صد آم صغ ص ت ملففا دتيصف فظ فلل أفضا مفرل ب money دشقصهص (.xia et al,2021اص ب صمش ب خخد صم ت اب فصن صم ص ص ص ب and turner , 2004 )صم ب مإلت صن صميل ك :م ب ن امى صمرتفل ب ب صمف د يدص ل ك ف ن دصمثص ظ ف ص تة ن صم ب صيد، ففا. ددوم تل صم ب مإلت صن صميل ك تل ص ق مليل ك صمففلظ فظ أ ر ج سة ، صمت ب د خخق ب صمففا امىدف ظ لص تع ا صم ب ( صس م م ص ص صمف د gurdner and amorson ,2004ر ج ص تشصم صإل صع. دف هص صمريةب د ق ب صميل ك صمرخخاط دأ فظ صم ص ص مإلت صن صميل ك ةش لصبظ ( wu et al , 2005 ملت ب. د زمق تا صم صمففلظ صً م لص ةش ديدص ل ك ف ن د صمفف صمففلظ د رظ وفلص تل ص ق مق تا صم صمتة ظ مإلت صن ميل ك صم ص ص س صس صم ن دمص ا ص صن صمع ثب ملت ب لظ ً ا صً تف صم ص ص تاخخي صميل ك ه صمتةلن صمخخيل ك صمففلظ صمرخيت ةلظ .د صم ص ص تتيث د(. ( wang et al,2018مليل ك صمففلظ ص صمر صمذب ب صمر تةطب صمال صمتيث صغ صمشا ب دهظ أد ةذم صمرفص صمتعف ب صمف ص ا دتتيمف ن صميل كو ت ف ذ فظ صميل ب صمتظ ت ف ف رص ا ص صن صمف د ن صمرعترا صن ةدب صميل ك صمريتل ف دتع د صم م صم ية ب ملف د مت ف ذ صميل ك صمريتل ف ajzen,1991.) فند huijts et al,2013 )ةة م مة ف ب ص تاص ب صيف صد سةا صت تفصدم ن صمرف فب صمر دصوفظ صمي ص ب م صمرفل صغ صمففلظ متة ظ ت ب صم ص ص صميل ب ةش ص ب مليل ك صم مص صغ فة م صن صمففلظ صمرلع ظ. ددفرب ف ن صميل ك ( رف ى صن تة ظ ت ب صمرفل صغ صماض ص س تة ن ب ا اص ب مليل ك صمففلظ. 2018,صماض ص صم صدب ف ب صمةعا متة ظ ت ب صمرفل صغ صماض ص دصخا قرتللو د ع دصغ ص ص صمر ن دفظ صمةعا صمعصمظ ترثا صم ص ص مصه ب صم ص ص امى( رةن صم ق zhang et al,2013 دف ص م أبد فظ صمر قرب س صمةعا ع تة ظ ت ب صمرفل صغ صماض ص . صمر ن د ذمك فصن صمفقسب صم فظ صمة ئظ د ص ص تة ظ ت ب صمرفل صغ صماض ص ا ب و ةش ميل ك صمش ب متة ظ ت ب صمرفل صغ ا لصفلى ت ف فل صغ ا ، ص ص صمر ن ف ب صمةعا ن صما ي لص ودمص تلص فظ صمةعا صمعصمظ ت ن تة ظ ت ب صمرفل صغ صماض ص رص ف أن ت صف م لل دفظ ئظ يتر ن س ص تلل م صسم ئتلل تلل لذص صما ص فظ صم سب صمر ص ب تف ا ص ت صت ا صغ ش ص دتي يص فلى مك ة د صمتع ب . رصم ب ت ب صمرفل صغ صماض ص فظ فر م صمش ب مشصما اتقال د ن ثم وصمرث لب صملر م صمة ئ ب دمذمك ت د صمف و ب صم ص فب فلى: فل صغ صماض ص لرص.فن صميل ك صغ صم لب تة ظ ت ب صمر ≥α)0.05ت م فقسب تيث ف ب مل فظ صمة ئظ ملر مص فظ صمش صغ ف ب صمةعا فلى ص صهل متة ظ ت ب صمرفل صغ صماض ص ف وتصميمها دراسةال منهجية .فقدم صمرشةلب صمر صد صمت ب شةا درفظ تعل لظ صمقصه مو أدصمذب يت فلى تفي صفتر صمةصاا صمر خا صم رفظ صمتعل لظ صي ث قبرب صمر لج د صمفقسب دصمتيث لص رص افا هذص اصا تيتل م تعل ا ص صتلص د ةة ب صغ تص م رظ ت ص تُف دمص فلى مك ةلظ أن ع د صمةصاا صمط ق صمذب ي فظ ا ا ر ، فلى صمتيصؤتغ صمتظ تل دوفلصو د صمر ش دمو دصإلمص بفظ ل غ أه صفلص ( orodho and kombo :2002ددرف دتعل للصو دهذص ص طلق فل ب ت ر ل صمةعا. دمص ت فل سةا صمش دع ارم ص صغ ( ف رثص ب cooper and schindler: 2014 صمر ر دم. د أبصمةصاا فظ مرم دتعل ا دتفي صمع صبق ص ج م ي مارم صمتظ تيتا م صمط صبق صمرثص، ص صي ئلب لص فلى ة ا امص ب فلى ف ن صمةعا ت و د ف صمذب فرل ب صمل ص ( فلى أ صرفصغ mugenda and mugenda:2003م د ق صم سب دصمةلفب؟صمة ص صغ؟ ص ه ع صمف ب؟ صهظ ع دصغ american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 57 www.americanjournal.org ( ص خطب شص لب م صمةصاا رلص ن صما (bhattacherjee:2012أفصد دصي صم ب دصإلم ص صغ صمتظ تل ص تفرصملص صم مص ب. امى صإلمص ب فلى أ ئلب صمةعاو أد صختةصم ف و صت صم صم ارم صمة ص صغ مرش دع عث و دهذه صماطب تة ن رثص ب ص ج فرا تل ف هظ:صمرع دمو د تضرن ثقث صاا صمثص بو دص تا ب فظ تلط ب صماص ب صم ق ب صمة ص صغ صمة ص صغ هرص: صمة ص صغ( دأمتةن عث ص فلى ف ن مب ي ن ن أدت مرم دأفتر صمةصاا فظ هذص صم د فلى ص ه صماض ص ( ب صمرفل صغ ص ص تة ظ تصمة ئظو صم فظ صمرة ي بو مرل صغ صمةعا صمضل ت صمرف ن تص فظ صمرل ةلب م صمر ص قغ صمرتصاب ل ف م ل صإلتصم صم ق ب ملةعا. فضق فن فض صمفصمر ب صمة ص صغ س صف . ل ر صت ت ص ص ةص ملةعا صمعصمظدتخخل صتفترصد فظ مرفلص فلى أ إدصمم صمر قرصغ وم صمتطة ق. دصمة ص صغ صيدم ب دت ظ امى تع ف ب صمةعا صمريتر م ن اترم صمةعا صمتظ تا ب فلى صمف صغ صمر ممب فظ أدصم صم صس. دتف ض دثص ص صمرفص ب( هذه صماط م فلى صمةصاا فظ صمر صم صيد، صمتي ظ فظ صخت صم صمش صغ صمتظ م لص صم مم فلى تة ظ رصم صغ تفضظ فظ لص ب صمرطصف تط دثصمثص هص صت تا صم صمرت ص مت ب صمرفل صغ دصت تفصدم لص متة ن صاب خ ةب مق ت ص . امى ت ل ا صآلثصم صميلة ب صمتظ ف ا .صمعصمظأدصم صم صس( دتضر ب أدصم صم صس صمرفتر م فظ صمةعا دراسةمجتمع وعينة ال أس ب فلى تة لصو دصمش صغ ب صم تُيصف س صمصغ تة ظ ت ب صمرفل صغ صماض ص فلى اوفص صمش ف ب فلى صمش صغ صمتظ ية لص فصفل ن عصفظ ل لل صم ظ فلى ادخص، ودادص ب رصم صغ ت ب صمرفل صغ صماض ص صمة ئبو د ل اهص فظ ل ك صمفص ل نو امى صمترصثا صمذب ت ُف فرا دفلى هذص صم ع م صمش صغ أن تة ن صه م فظ صمتفي دصت تاص ب متف ئتلص صمتشل ل بو دصم ر ، ي دمة فرا ة س فلى مل د ة م ت ل أد تاة دا م فظ اترم ص فلى أن تشة صم ا صغ صيخ ز صمتظ ت صم صمق دف maudre فيلصو د اي صمترصثا صمتاص س صمرذها مألشةص، دصمررصم صغ صمت ق ر ب د يب صم ر ، امى صمترصثا ملفصفل ن فظ صمش ب et al,2021 . ) د تة ن اترم صمةعا فلى دفق ص هpandey and pandey :2015ص صمذ ن ف خخ( ن مر م صيفض فظ مر م صمش صغ رل م صمعال فظ عصفقب ب سصم صم صسفب فظ مص ب اترم صم صم أب ترثافلى هذص تفرل صم تصبج لل. دتي يص فظ فصم صمتاط فظ داصمم ( ف دم دف ص مإلا صب صغ صمتظ ش هص صمالصا صمر ب مإلا ص 1186ف دهص صمف صا صمةصمغم ر 2021 . س ة ن ن صمفرلظ دمص ب صمراترم صمةص ا يةب س د فظ فض صيا صن د صمراترمودصمف ب هظ فضص ف فظ ع ب خ صبد orodho and تل تفر ل صم تصبج ن صمف ب صمترث ل ب دصمعالو ثل اتصم ف ب ترث ل ب ن ا ا صما صبد دصمر صمدو فف بذصم سب kombo :2002 .)صمرف ت فلى دسم صت تا صم هذه صمش صغ دمص صخت صم .صمرعصفقبش صغ رل م صمعال فظ دف ب عث ص هظ صم فقرلص ين ص صي ودصادصد ص صمذب لري رص صهل فظ صمت ه م صمة ئظ ب ن رتلص صمة اصدصمذب مت ب صمرفل صغ يةب شعب صمةل ص صمطصسب دلت دم ص تتصج صمطصسب صمةل صب ب صمُريتا ب مل س د صياف مب صمة ن وأد ا ب صملصا(فلى م صغ تفتر دفظ ر صمتلص صا ثص ظ أد ي صمةصم نرض م صمة ئب صملصاصغ ن صم رص ف ظ صمريصهرب فظ أتقا صم ت ب. ب ن صمشةة صمريتلرب ص ب ( ف pandey and pandey :2015دأفتر صمةصاا فظ صخت صمهل أ ل ر صمف ب صمفش صب بو صمذب أب .فلى ع ة م مص ب اترم ة ية ص تش فلى يصاب مل صف ب ة م. دا ا ان اال صمف ب أا صمف صر صمعص رب فظ صمةعا ي ةث فلى (. دوم ف ن صمةصاث ن فظ صا تع هل ملعال صي ثا hair et al,2017صم م صإلا صب ب تختةصم صمرف ب دسص ل ب تفر ل صم تصبج ْن م فلى ام ص عا ف نو فلى ة ا صمرثص، معال صمف ب ار فب صشت صتصغو دم ر ص خط تصً فص ب فت ض ص لخخت م لص م ( صن اال guy et al,1987 ص ب مرفقل صي عصث. دفن 500دصسا ن 30( صن اال صمف ب صي ة ن sekaran,2003 ز صدمص ص ة ن و دم صًو د اب صن تة ن ف ب صمةعا أ ث 500 رص اال صمف ب صي ة ن ة ن رل صً م صو 30صمف ب صيسا ن american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 58 www.americanjournal.org ( ُاِ دم ص تا صم م د، تع صمف ب 288 ف دم اتى تة ن صم تصبج سص لب ملتفر ل. داال ف ب صمةخخخخخعا صمعصمظ صمةصمغ ت ةص 100 ن (. krejcie and morgan:1970صمر ت ن ( 1الجدول) الخصائص الديمغرافية للعينة النسبة المئوية عدد الفئة الخصائص الديموغرافية 39% 78 30-20 العمر 31-40 73 %36 41-50 23 %11 51-60 18 %09 05% 10 فأكثر 60 56% 113 ذكر نوع االجتماعيال 44% 89 أنثى 15% 31 إعدادية المستوى التعليمي 49% 99 بكالوريوس 26% 35 دبلوم عالي 10% 19 عليا دف م أمص فض و( ص ترصمم م م د مرف أف ظ دفر دب20 لص (و أهرا222ص تفصد لص داع صمةصاا صت تةص صغ د صو د ملتعل ا صمريتا ة ن فلى مر م صي ئلب. صماصوفب صمر افب ودتة د يةب ة مب 70د للب يةب صت تةص صغ % ن ف د صت تةص صغ ب فلى ادصمم صمش صغ رل م 40-20صمف ب صم رل صف ب د قاظ اق ه ر ب صمشةصر ص ن ( وم خ صبد1دصما د، فظ صمرعصفقب صم طصع صمفصم قرصغ صمرييمب أرةعب يم فب فظ و فا % دهذه 75صمعال فظ صمرعصفقب د يةب درلب ت ةص صمى % 85شةل ص ص يةت د ص ف هص فن ا اصد ن ف ص صمفرا وصمى ص ت م قاظ أن صمرتفلر ن ن صمعصرل ن فلى شلصدم مص ف ب فلى شلصدصغ مص ف ب دفل ص فلى أ شص صمرشصم م دهذص ةش م فلى فصفل ب صمرةصدمصغ صمعة ب صم ص ب صمى تشا م صمعصرل ن % ن ف ب صمةعا ود عرا مك ن ت صت دتمب لرب 44. دصمرفصميم أن صم يص شةلن و دف م ص تقصم صمت ظ ف صمعة ظرل م صمعال د ة ن صمتعل ا طصع صمفصم. ضر لص ص ت ص، صمر أم صمف صس ب صمى ا صمفرا صماصص ف أن ص ب دمفت م ت لب تريةب صمفرا فظ صم ددوم صمةصاا صمرتل صغ صمشا ب ترصش ص م صم أب صم صبا أن ل ك صمف د تيث ف د ن صما صبد صمش ب.فلى يت ز صم ر صف ب. الدراسة وأداتها بيانات طريقة جمع دتة ب صت تةص ب ن سير ن خ د صيد، مرف فب صما صبد وصمةعا مارم ص صغ رفلص أدصم مب يب صمةصاا فلى صت تةص ب فتر ص فلى دفق صبلص صيدمى فظ صماط مد صم ر صف ب صم ع صتمترصفظو صمفر وصمريت ز صمتفل رظ( مف ب صمةعاو دصمثص ظ مف صغ صت تةص ب صمريتا ب دتط مهص دص فةص صتلص فلى و ع ( صمفبpetter et al: 2007 ص ه صمرفصه ل صم لب ن ا ا صيدر صغ اتصم مفظ ملةعاو أفضى فظ لص ب صمرطصف صمى صمتف ف فلى أ فصد صمةعا صم ب يب صمط ق ةل ممصمةعا. د صهل ص تلصج صمةصاا ملذص american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 59 www.americanjournal.org امى أن صمةعا فظ اص، قل صمرفل صغ ( صت تةصهmoore and benbasat:1991 مفبدصمف صغ صمر ص لب ملص. دفظ ا ا ر ، ( فظ مك ورص ص مة ص mandre et al ,2021د ز صمذب تطلب ص تا صم ص تخخة صن يخخختل م ص ص تةص ب تعقى صم ا دصمثةصغ. و صمقا ن صمةصاث ن م ةم ف صمصً يت ، ن صمر صس ب فصم ب ن دممب فلى صمف ض أ ر ج ت صف هذص تع ق د ل ب ثقث خط صغ و دم ب دهظ : (moore and benbasat:1991 دوم صختةصم صيدصم3 تط صمر صس-2 تة ن ف صغ صمر صس-1 ( فلى س ص م دص فب ا ، صمر و ع يف صد سصبرب شص لب صمف صغ hu et al: 2005 دت ط ب صمر الب صيدمى ايب ص أفصد سصم صمةصاا ر صمفب دت ف ف د ن صمر ص س صغ صم ا دصمثةصغ صمفصم ن دمص تلص. مذمكصمتظ ت س صمرتل صغ صمتظ ب صمةصاا ت مب صمف صغ امى ف د ع دد متقبل تة فب صم مص ب دفظ صمر الب صمقا ب صخ لصو ص أ ص ب تتفلق صم مص ب فلى ع ةصش أم س ةب صي صمر تةيب.خخخخخخخخخخخخخخد وخلص صمف صغ تط م صمثص ب صمر الب دصشترلب م صس ف ص ظ ف م فش م خريب صمةصاا رصغ ( م صس 1-6( و د س صمف صغ (alziady and enayah,2019ةيلص ن دمص ب خخخخخخخخخخخخخخخخخخخخخخل ت صمرة ي ب أستخخخخخخخخخخخ صمض دصمف صغ صمرذ مم آ فص و( م صس صمضل ت صمرف صم ب 1215( م صس ول ت صمت ل و دصمف صغ 7-11ول ت صإلم صم و دصمف صغ دتل صمتفص ا فظ صمر الب صمضل ت صمرة ي ب فلى ش صتلل متة ظ ت ب صمرفل صغ صماض ص و ت س ادمص صغ ف ب صمةعا امى ز تيث ن صم ممب صيدمى تختةصم صمف و صغ صمثقثب صمرتف فب ن صمف و ب تل صغفلى ا لص ا فلى ا م صمثقثب ضل تصيدمى م صم ة ي ب اترفب مة ص ف صمضل ت صمر صمرتل صغص تا ب دمى ودصمثص ب ودصم ص فب صم ب يب صيدمى و دتختةصم صمف و صغ صم ب يب صي صمف صغ دخ ب و صمثص ب صم ممب دصستةيب ن 18-16 ةف ن صمةعا ف ب م ز صمة ئظ صم فظ م صس )ojoa and fauzi,2020 ف دوفب م صس ص ص تة ظ ت ب صمرفل صغ صماض ص ص تفصمهص صمةصاا ن 21-19( و أ ص صمف صغ )xia et al ارم ث س بو د يرم ث صمة ص و دأي لا صميةصفظ صغ فلى دفق ف صم م ة غ فلى صمف. ُتلب ن صمرفع ر ن صإلمص ب (2021, (. 7( امى أتفق ترص ص 1صيهر ب ن ت أتفق (. دت ممبcooper and schindler :2014 ص صغ أ ث ةث ن فص أخ ز دسةا مك اتة دسب ص صغ صمةعا.صمر الب صمثصمثب فة ب ملتع ق ن ر ا صيدصم دثةصتلص صمتظ ف ولص صمتف ا فظ سيل آخ ن أ ص أدصم صم مص ب دم دتلص. وجودتها دراسةال أداة بيانات دقة اختبار صمر فصغ صم ل ز صما ب ب مت ر ج صمةعا دصمرفلرصغ صمرفصدمب صمل ةل ب ذمبصختة صمةصاا أ ر ج عث ص تا صم تعل ا ر صمر مصغ صمرفي و فقدم فلى مك أ تا م ام ص صغ افصدم صمتةص ن صمى تفق ل صمرفلر صمر تةطب رص فضظ ملع ، فلى ب صم مص ب أ فصد صمريصمصغ ن ص. 5000 تة صم ف ب صمر فصغ صم ملب ددظف تعل ا صمر خا صغ صمتظ تيتا م صما ب ب م ل ز ( ملص صم مم فلى ت تعر قغ دأداصن صمرةش صغ فلى صي فصد دصمفقسصغ chin et al:2003 صمرفتر م صمرة ن ي لص فلى مأز فلى صمفقسب ن صمرتل شةا خصص ملةشف فن تيث صمرتل صغ صم طب بصميةة ب ن صي فصد فظ صي ر ج تف د صمر صاا د ص ة دفق ص فلى صمة صسظ دت ا م صمف ب ف رص تفلق عال ر ص تص صسا صمتعل ا ضم تطلةصغ .دهذص صمتص م دصمرتل صمريت ا قبل ترص ص إلظلصم صمفقسصغ صمرف م فن ت ق تا ب صمعل ، صمر ة مب د( اوصفتص صمى س مت صمت ةة ب صمفصم ب. chin:1998 ه د يرم صمت .(chin et al: 2003 يت لبده ف ترص ص ا رص ة ن ه صك ف د ن صمرتل صغ صمرفتر م صمتظ ت ةم تل صغ hair et ن صمرتل صغ صمتص فب أ ث ل صغ صمريت لب ددصا أد خخخخخخخخخخخخخخخخخخخخ ن صمرت أ ث صمرت ص ن ملفقسصغ صمرتف دم ن دصا أد al ,2017) رف ى آخ أن صمتعل ا صمر فصغ صم ل ز صما ب ب ص ب م مص ب صم رص ج صمرف م د ف د ب فظ ص تا صم صمرتل صغ . دفلى دفق هذص صمت م د تضرن صمتعل ا الت نو صيدمى صختةصم أ ر ج صم صس دصمثص ب ت ل صي ر ج صمل ةلظ. صمتة ب دصت فةص ب. دفلى دفق صمرفط صغ صمرت صف م مرتل صغ و تضرن صمتع ق ن ثةصغ صمر صس در س صمر صس صمذبفصن صمةصاا م أدت ت ل خ صبد american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 60 www.americanjournal.org ل ب مفا د . smart pls 9.2.3 ص ختا صم خ ص ج دُاللب ص صغ صمةعا صمةعا دف صت صمرفي م م صختةصم ف و صغ عث . ل رب ت ن دثةصتلص مص بفظ ص تا صج ةش صغ تة س م ا أدصه صم فل لص ث صصمتظ فتر ا مصغ ف فب صمتعل ا صمفص لظ فل لص. صم تصبج صمتظ تل صمع ، امى ن فص ب اال صمف ب لص ص ةب د رةن صتترئ صن صمتع ق ن م دم ص صغ أدصم صمةعاو دصمتي د يرى صختةصم قبرب صمرفص بو (kaiser-mayer-olkinصمذب ز أن صختةصم (hinton et al ,2014 ب خختر صمةصاا ت ردصف دصست صر س رب صتختةصم ن صم ف ، فلى أن ار ع صم مص ب. ص ب ملتع ق ن م دم ص صغ أدصم (kmoد شصم م صخت صم هذص س ل دتاصدا رع م. دصمفةس صما ب ب صتمتةصت مر فصغ فص قغ أرل صم يةب صمرتل صغ صتمتةصت ن فصغ فص قغ ام ص صمتعل ا صمفص لظ. د إم ص امىي فصد صمةعا تة فص ب اال صمف بو د ةش أن صمط ق أرةم صمةص مق ت ص، 0.60صتختةصم فتةب رةن صم ، ان اال د صمتصمظ (0.82). د (0.57)( ا أ لص ت صداب ن 2 ق م فب فلى س ل هذص صتختةصم صم صمدم فظ صما د، فص قغ صتمتةصت ( صختةصم صمتل ب ي اتة مر م beavers,2013 م دصمف ب صف ص إلم ص صمتعل ا صمفص لظ ي فصد صمةعا. ( فين مك 0.05 ب س رب صختةصم صمتل ب دصمب اا صب ص ف يت ز دتمب صسا ن صفظ صمر ف فب ظ ت تة ن صمتةصتصغ رف ب. فإ ص لص م يب ف فب ا ، فلى خل صمر ف فب ن صتمتةصتصغ صم ف بو دا رص صمتةصتصغ صمر ف فب فظ صمراترم تاتلف فن صم ف و أب .دا م صمرشر مب صم مص ب صغ دتمب ف ب. دفلى صم ل ن أن % م ة أن صمفقسب ن تل صغ صمةعا50دس للب س رت صسا ن فصن ملة ص صغو م مك صمتعل ا ت تتطلب ت ا فص تة ف ص صمرفتر م فظ صما ب ب صم ل ز صمر فصغ صمل ةل ب ط ب صمرفصدتغ ر ج ت ا م صمة ص صغ م س ةف فن صمت ا م صمطة فظ لرص تن صمة ص صغ صغ صمت ا م صمطة فظ تيةب اشةصت فظ دتتغ صمتع ق ن أن ةدب امى صمت ل ا ن صاترصم ب ت ل فض فقسصغ صمذبصمرفلرصغ يةب تضال صيخطص صمرف صم ب صم صتاب فن فرل صغ افصدم صمر مصغ ( رةن صن ة ن ف صً مفعد kolmogorov-simirnov(. دصختةصم hair et al ,2017اا صب ب صم ر ج فلى أ لص صغ دتمب ف صمطة فظ ن صمت ا م تتةم صمة ص صغ ا ص ص ب صختةصم ص س رب ا ص ص ب تة ف ص تت اع صمة ص صغ فين صي ل ر ملذص ددف ص kolmogorov-simirnov صمرعي ب أ ة ن )d ن اال ف ب صمةعا صمرف صم ب. ديn د يت ز صمرف ب صمرفتر 180( لغ دهظ ذمك صسا ن س رب (0.10)صمرف صم ب تةلغ dفين س رب d=1.36 ÷ √ɴ. دتة ص ملرفصدمب صآلت ب 0.05فظ صمةعا صمعصمظ ه (. د ن ه ص رةن صم ، ان صمة ص صغ افب تة ف ص. (0.79د ) 0.53صتختةصم صمرف ظ ملرتل صغ صمرشر مب صمةعا صمتظ ت صداب ن صمرفلر ب صإلا صب ب صتختةصمصغ ص تا صم ا ةص ب فلى دتبا صتختةصم (. cooper and schindle,2014 رص فطظ صن د م ذ م آ فص ت م ات فل صغ ع ددم ف ص تة ن صمة ص صغ ش م صمةف فن صمت ا م صمطة فظ تف ن فلى صمةصاا دمص ب صث ن ن صمر ملتي ن قبرب ت ب صيممع ب صم ز فظ ت ةش صغ صمرطص بو دصمعةل فلى ت ا فصغ صمة ص صغ دهرص صتمت ص و دصمتف تم و س رب صتمت ص أد صمتف تم ملرتل صغ صمرف ب فلى صماطي يرب صمتظ رةن صمع ، فل لص z س رب هرص تفر فلى تصبج صختةصم ق و دمص غ صمرخفط صغ ت صف ب م صمرف صم 1.96±1) ( اب أن ت ت م خصمج ا دد zدسصف م صم صم ه صو أن س رب اا صب ب صمرف صمبو صغ صم لب صمتف تم z صم يةب امى صتمت ص و دفلى صم مك صمغ س رب 1.17) (د) 1.23-لص ن و ا ت صداب صم رب صمرشصم ام صمة ص صغ ت ت ر ن 1.18 د ) 1.21-(دت صداب ن 1 رص ه ظصه صمخخخخخخخا د، ملعةل فلى أن ( دهذص ف أ ص ص ة ت (. hair et al ,2017صمت ا م صمطة فظ ض صمةشف فن ص ت قم ب تل صغ صمةعا دف م ت صخللص م فضلص ص تفصن صمةصاا رف ، تةص ن صمتضال صمذب ت صداب س رت دمل أوف امى مك فن ت ق س ص م ع د 3.3( دمل تتاصدا طب صمف ا صمرتفصمف فل لص فظ هذص صما ص دصمةصملب3.01د2.96 ( ن ظ ت فن صمع صيد ى صمر ة ، رص ُة خل صمة ص صغ ن صتمتةصت صماطظ. د صمتصمظ ( ده0.003301صمر ف فب صمذب للب س رت د رص صن ص صغ صمةعا صمعصمظ مرفب ن رةن صم ، ان شةلب صمت صخا صماطظ ت تشةا ف ةب أ صم صت ت ص، امى صماط م صمقا ب ملتعل ا. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 61 www.americanjournal.org د م صًو د صمتصمظ تف ض فلى صمةصاا صمةشف فن صاترصم ب دم د هذه صمرشةلب. م دصا فين صاترصم ب دم د تع صمط ب صمفصم دصم pavlou% صب 90دأا صمرةش صغ صمتظ تفطظ دتمب فلى دم دهص ه صمتفصع س رب صتمتةصت ن تل صغ صمةعا صمتظ س ت ا امى et al,2007). أ ة س رب مل ت ا امى ا دد صمرف صم صمرفتر . د ن دف صم ق امى ف فب صتمتةصت ن تل صغ صمةعا لعظ صن صما صمةشف فن ز دم د هذه صإلشةصم ب ن ف لص صختة ص تع صمط ب صمفصم ص تخخخا صم ام ص صغ رذمب صمرفصدمب صمل ةل ب صمتظ دثرب ف صمصن يتا صن ( harman, 1979( فن ت ق صختةصم صمفص ا صم صا صمذب ت ا podsakoff et al,2003أدرى لص صمفصم دهظ صمة ص صغ ن تع صمط ب صم صاظ صمتظ لص ن صمرعترا أن تفص ظ (ظل م فص ا دصا ن 1فلى طصا دص م متع ( دا ص مل تع ق أا هذ ن صمرف صم ن podsakoff et al, 2003(تفي فص ا دصا مرفقل صمتلص ن صمر ص س 2صمتعل ا صمفص لظ % ن 27فإن صاترصم ب تع صمط ب صمفصم افضب .د صمف دم ملرفط صغ صمتظ صف اهص صمتعل ا صمفص لظ لعظ دم د خريب أ ة هص في صمتةص ن صمةلظ د صم ت اب فصن تع صمط ب صمفصم ت ة د فلى ص شةلب فظ صمةعا صمعصمظ. ( 2الجدول ) ة البحث دقة وجودة بيانات أدامعايير اختبارات معامل المتغير تضخم التباين معامل التباين المسموح به معدل التباين حسوبمال الجذر التربيعي لمعدل التباين المحسوب االلتواء z رطح التف z k-om kolmogorovsmirnov القيمة اإلحصائية الداللة اإلحصائية 0.34 0.63 0.73 1.18 1.10 0.80 0.64 0.31 3.24 اإلرغام 0.43 0.53 0.76 0.67 0.78 0.88 0.79 0.46 2.18 المعيارية 0.31 0.79 0.64 1.21 1.230.79 0.63 0.34 2.90 التقليد الوعي البيئي 3.07 0.33 0.71 0.84 0.550.74 0.82 0.67 0.52 0.23 0.55 0.57 0.591.17 0.82 0.67 0.47 2.14 النوايا الصدق الظاهري * ةعاصمف ض ف صغ د تف اأن صم ص م صم ص فب مألدر صغ صم لب ر و ع صمةعا تُف خط م مب يب مضرصن ر ا صمرعت ز و د تف ن فلى صمةصاا صم صم در ا صمرعت ز ت ا أهر ب فن ر ا صمة ص (.wacker,2004فظ اص، صتخت صص فلى خة ص صم ا ل ب صمتع ق نهذص صم أب دمريص م د .( rossiter,2008 أم ص فرل صغ صمتعل ا صإلا صبظ صمت ل ب مل ا لذه صماط م سةا خة ص فظ ل ب فش م فلى لص سصم صمةصاا ف ض ف صتصمريتر م ف صتلص ن دمص صغ مر ب رص أ لف ص صم ، و دصم صم صس صمقصه ب ي أفتر د عاو خخ و ع صمة ف ف دص فب فظ م لل صمذ ن ل ب صإلدصمم دصتست صد /مص فب وصإلدصمم دصتست صد / مص فب ب سصم ت ل لل خة ص فظ اص، صتخت صصو دتلب امى( صمذب م فلى ام ص، ف صغ أدصم صم صس (lawshe, 1975صمةصاا خا صمف صغ فلى أ صس صس ثقثظ صي فصد . د عيب صختةصم ر ا صمرعت ز مةا ف م فلى الت نو صيدمى بأ ص -3 ب و دم ب و دمةن م يب لر -2م س ب رلب -1 :ايصر ر ا صمرعت ز فلى دفق صمرفصدمب صآلت ب = (n-n/2)/(n/2) content validity )ر ا صمرعت ز american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 62 www.americanjournal.org صمف د صمةلظ ملاة ص صمذ ن تف ض ملل صت تةص ب n ان:ا ا n تة صم ف د صمريتا ة ن صملذ ن متة ص صمف م فلى أ لص أ ص ب د تل صتاتفصظ صمف صغ صمتظ ملص ر ا عت ز د ن ثل تفص ا ا د، صم ل صم ص م خيةب ر ا صمرعت ز صمرف لفص ملذص صمل ض. د صمت ص ن م هذه صماط م تل ى صمةصاا .فظ عث ص 0.83أفلى ن صمفتةب صمتظ تفتر فلى ف د صماة ص دفق صما صد، صغ صم لب دتةلغ مفم ن فض صمف صغ رص فض صمرقاقصغ صمرةت ب أد صمشف ب ن صماة ص صمتظ ص ب س رب دأ لرب فظ افصدم ر ص ب ودت ت ب يت ز ر ا عت ز أدصم صم صس. دفظ لص ب صمرطصف دمضرصن أن صت تةص ب دصوعبو د قرب ف ص بو دف د ف صتلص ص بو دت ، ( يتا ب ن ف ب صمةعا دف ، فظ و صمرقاقصغ صمتظ ت شعب مت ةم 20صت تةص ب ت هق صمريتا بو سصم ف ولص فلى صت تةص ب فظ ر لتلص صم لصب ب. اختبار أنموذج القياس *الصدق العاملي فلى أن صمتعل ا صمفص لظ صمتي بو فةس صت تةشصفظو ت م صمف رب متع رعب رص ج س صس ف ) (hewitt et al, 2004ش د صمةصاا مذص أ تا م أدصم تل صبلص فظ و أت ق ب ص ب ترتفب صم ا دصمثةصغ. ملعةل فلى رعب صمتي ب صمفص لظ صمتعل ا صم صسو دصفتر أ ل ر صيممع ب صم ز فظ صمتللب فلى شةلب اا صب ب مل تل صمتللب فل لص فظ صي صم ب صيخ زو دهذه صمرشةلب صغ صمفص ل بو دص تا صم عك دصا دصمتةص ن صماصص ين هذص تطلب ت صً ملتشفة تتفلق صمتر ن صمف ص ا صمرشت ب صتشت ص صغ( ( دتمب تشةم. ا ا ان دم د 70رع م ا أد ى م ة ، صمفص او ا ا ت سف صت تا صج ف صماذم صمةصبن دصا رع م في ث د % تش امى دم د تةص ن شت ك ن صمةف د ةش صت (hair et al, 2017) ف تغ تشةم ت ت ر فظ صم صا صم ع م فلى دفق ص في ه صمفص لظ صما د، نأ ة صمتعل ا صمقصه م ر ف فب صمرفط صغ صمتةص ن. د تضم ن س ص م صمف صغ تشةفب فلى 3خطي ( أن مر م صمف ص ا صماريب صمتظ ت يلص دايب تيليا صمف صغ فظ ف فب صمتعل ا صمفص لظ. صمةص ن صماذم س رب ملتةص ن ن 4.02و3.36و2.79و2.34و2.29 د للب صمرئ ب صم يةب دت صداب صمت صمظ. فلى )0.15 د ت ، فلى ية صمتةص ن فظ ار ع صمرتل صغ صمتظ %. د للب صسا س رب ن س ل صتشت ص صغ71(. دس رب صمتةص ن صمرفي للب 0.27د فظ ف فب صمتعل ا صمفص لظ (14صم سل ص ا صمف م ب صتشت ص صغ ف صنصمتظ تقل تعب رةن تفي هص صتب صمف ص ا صميةفب( دخقرب تصبج صمةعا تة ن س م تيث صيدم صمراتلفب مف ص ا صمةعا فلى رف ف تغ صمتشةم دصمرف ب. .(0.65 *صدق التقارب ( ا رص ة ن تشةم صمف صغ فلى ف ص للص anderson and gerbing,1988فلى دفق ص ه تي م ص صم ا صمت صمر gefen)%(. فقدم فلى مك د أب 70( ا أن تعر ا مر م صمف صغ فلى ف ص للص تاصدا فتةب 3فصم صًو د صم ق امى صما د، and straub,2005 صي فصد صيخ ز فص قغ تعخخخخخخخر ا صمف صغ فلى أ فصدهص صمرفت وخخخب أ ة ن تعر قتلص فلىف ص تة ن ( فصن هذص فطظ ةش فلى دم د ر ا ت صمر. دس ب م ص ف فب صمتعل ا صمفص لظ تع ق هذص صمش ت. دفظ 0.10 ر صم أ ة ن ( ة أن ةش صغ س صس صيدص تت صمر أد تتشصمك فظ س م ة 0.50 صا ت ا أن ف ، صمتةص ن صمرعي ر ا رص تاصدا فتةب . bagozzi and phillips,1991) دهذص ص ف ا ر ا صمت صمر فلى دفق ص أشصم م نو ن صمتةص american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 63 www.americanjournal.org ( 3الجدول ) مصفوفة التحليل العاملي االشتراكيات النوايا الوعي البيئي المعيارية التقليد اإلرغام الفقرة المفسرة العوامل ت 1 غام إلر ا 0.68 0.11 0.08 0.17 0.12 0.79 1اإلرغام 0.67 0.10 0.10 0.18 0.13 0.78 2اإلرغام 2 0.73 0.14 0.13 0.14 0.15 0.81 3اإلرغام 3 0.66 0.16 0.14 0.16 0.10 0.77 4اإلرغام 4 0.75 0.15 0.17 0.11 0.09 0.83 5اإلرغام 5 0.70 0.15 0.09 0.08 0.13 0.81 6اإلرغام 6 7 التقليد 0.70 0.13 0.08 0.19 0.80 0.10 1التقليد 0.69 0.10 0.10 0.10 0.81 0.12 2التقليد 8 0.66 0.10 0.10 0.12 0.78 0.08 3التقليد 9 0.69 0.08 0.11 0.11 0.79 0.14 4التقليد 10 0.70 0.09 0.09 0.18 0.80 0.16 5التقليد 11 12 المعيارية 0.71 0.08 0.11 0.82 0.16 0.14 1المعيارية 0.70 0.06 0.13 0.81 0.15 0.10 2المعيارية 13 0.65 0.13 0.14 0.77 0.11 0.09 3المعيارية 14 0.70 0.13 0.18 0.79 0.14 0.17 4المعيارية 15 ي 16 ي البيئ ع و ال 0.77 0.10 0.85 0.13 0.09 0.13 1الوعي البيئي 0.79 0.08 0.84 0.15 0.07 0.15 2الوعي البيئي 17 0.77 0.21 0.84 0.11 0.10 0.11 3الوعي البيئي 18 19 وايا الن 0.73 0.82 0.16 0.14 0.08 0.10 1النوايا 0.75 0.83 0.17 0.16 0.12 0.08 2النوايا 20 0.70 0.80 0.15 0.11 0.13 0.09 3النوايا 21 14.89 2.29 2.43 2.79 3.36 4.02 الجذر الكامن 1 0.15 0.16 0.19 0.23 0.27 للتباين النسبة المئوية 0.71 0.11 0.12 0.13 0.16 0.19 نسبة التباين المفسر ( bagozzi and fornell, 1982دمةظ ، ان صمر صس تر ا صمت صمر تف ن فل ص صتمت صم ثقثب فص أدرى لص و دثصمثص فت ض أن ف ، 0.70و دثص ص ةلظ أن ة ن فص ا صمثةصغ أ ة ن 0.50دهظ أدت اب أن ت ف تغ صمتعر ا فن م صمةصاا صم ، ان دهذه صمرفص تع ب فظ صمةعا صمعصمظ. دتي يص فلى صمرفط صغ ت ب صمذ 0.60فن صمرعي رصمتةص ن ه أدصم صمةعا تتر ت ف 0.70( امى أن فص قغ تعر ا صمف صغ ا ص اصدغ فن hulland,1999 ا ت صمر. اد فلى مك ة ن فصم ص فلى أ ث ن ف ( أن تشةم صمف صغ ا رص تhair et at ,2017 ةش متع ق صم ا صمتر ب. دفلى صم مك أفصد دمل ض صتترئ صن ص تا صم .ده ذمك فظ صمةعا صمعصمظ ت ف صم ا صمتر ب american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 64 www.americanjournal.org تاص سو دسصف م صم صم ه ص أن صست صر يةب صمق تاص س امى صم صا صم ع م ش امى صتفت صم امى ر ا صمترص فظ ف صم يةب صمق فتةب تتاصدا مل ام لص صمرشصم صم يةب أن صمةعا أظل غ تصبج دس دصمفةس رع م. صمريصمو صمخخ( ة م ر0.85تعل ا ترص ا ( 0.05د ريت ز دتمب 179د للب س رب فص ا صتمتةصت ممب ا ب . (henseler et al, 2016 فلى مأز مرتل صغ صمةعا ( ا اص ب دتي فظ صتاصه دصا .4ت ةص. رص افا فقسصغ صتمتةصت ن تل صغ صمةعا صمرف دوب فظ صما د، 0.132 *صدق التمايز صماذم صمت فظ تف ا س ل ( معيصر ر ا صمترص و دصم صف م ه ص اب أنfornell and larker,1981ا ف صم صفتر صمةصا ( قاظ تع ق هذص 3دف صم ق فظ صما د، (. barclay et al,1995 فص قغ صتمتةصت ن صمرتل صغ رفص ا صمتةص ن صمرعي رم ( فظ ا ن أن صفلى س رب ن س ل صمتةصت صمرتل صغ 0.88د 0.79 ا ا ت صداب س ل صماذم صمت فظ مرف ، صمتةص ن صمرعي ر نصي ى أن صمف صغ صمرفي م م ش صمتفصع س ل صمتشةفصغ ملةف امفظ صم سب صمذب د(. 4 رص تقل فظ صما د، (0.60 ةفضلص مل تتاصدا ( ة ن صن صمةف 2م لص صمةث ن صم ص ل صمرشت ب صمتظ م لصو فإن صماذم صمت فظ مرف ، صمتةص ن صمرعي ر صمقصه فظ صما د، شت ك فظ صمتةص ن م صمف صغ صمر تةطب أ ث ن صشت ص فظ صمتةص ن م أب ف آخ . ثبات األداة اختبار -ثالثا دمل ض صمتع ق ن ثةصغ (hair et al,2017) تف ن فلى صمةصاا فظ هذه صمر الب تشا د فص ا ثةصغ ص . دصتفصسصً م مأب فلى صمفص د ص صخ ا ت ن فص ملتي ن ز ت ص فةصمصغ ا صس(صمثةصغ صمر صس أ تا م صمةصاا ةش فص ا ( ت صغ أفضا werts,1974ين صيد، م دفلى دفق ص ف و صتتيصا صم صخلظ ن عت صغ ا صس خصوم مقختةصم( ملتخةص ن صمرشت ك ي يخذ صمعيةصن ةش صغ ملص فص قغ تعر ا اتلفب فلى خقف صمثص ظ صمذب فت ض أن مر م صمرةش صغ رةن ( يتا م تشةفصغ صمف صغ صمتظ تل صمع ، فل لص ن دصخا صمشةةب ,2007raykovدي أب صتفتخرصد فل لص فلى ا ص . إ م ت صغ أفضا ملتةص ن صمرشت ك صمذب ع ا فل فن ت ق صمرةش صغ صمر مم دف ص مذمك. د يخذ فصمتظ تلطظ صمر و عو (hair et al,2017) . صمعيةصن صمتعر قغ صماصمم ب ملرةش صغ صمرتل م رص أ أس ز مت ل صمثةصغ صم ب م فصدمب صمفص د ةصخو فضقً فن مك رف (garver and mentzer,1999)اصد فلى صم ، (hair et al,2017تة ن و ب فلى دفق ص ا ده 0.70-0.60 ي صختةصم تعفظ ملثةصغ. دس ل فص ا صمثةصغ صمتظ تت صد ن س فس صمقصه م ن ثُل عترا أت تة ن رصمعب فل يب ب ي لص تش امى أن مر م صمرتل صغ صمرةش م ت 0.90اصدغ فن دا ص) م صس صمةف . ( أن ةصم صمين هل صي ث صمت ص ص صمضل ت صمرة ي ب صمثقثب دف ص م ل فص قغ صتمتةصت و دأن صم يص أ ث 4د يت تج ن صما د، ف ص صمتع صغ صمة ئ ب ود ص صهن دصوعب ع تة ظ ت ب صمرفل صغ صماض ص و د صْفنم ملضل ت صمرة ي ب أ ث صم ب صم مص،و د ملة ئب. د لعظ ن صمر صم ب صمتفل رظ و لرص أادصد صتمت صم صمضل ت دأادصد صم فظ ض دمم تة ظ صمررصم صغ د لرص صمتفم صمريت ز . فقدم فلى مك أن س ل 0.90ده صمع صيد ى صمرطل ر دمل ت ا امى ا دد 0.70ل فص ا صمثةصغ تاصداغ فتةب صما د، في أن س ( .دأن صتمتةصتصغ ن صي فصد افضب ممب bagozzi and yi,1988صمتظ أست الص 0.50 ت صمتةص ن صمريتا ج تف ا فتةب ن فعد صمفقسصغ لص. ده ص ف دفرص اوصف ص امى ترتم أدصم صمةعا ممب ثةصغ صف ب رص ش امى أ لص يت لب د ص ةب مر م ة مب تةهللص متة ن ص ص فت . دفظ و ص ت م رةن صم ، ان صس صمةعا صظل ثةصتص در سصً ت صم ص دتر صً ة ت ير american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 65 www.americanjournal.org ملةصاا صت ت ص، امى صمر الب صمثص ب ن صمتعل ا ( 4الجدول ) مصفوفة االرتباط ومعامالت الثبات المستوى النوع العمر المتغير التعليمي الوعي التقليد المعيارية اإلرغام البيئي معامل النوايا الثبات n/a 1 العمر n/a 1 0.11 النوع n/a 1 0.09 0.23المستوى التعليمي 0.73 0.31 0.190.24 اإلرغام 0.78 1 0.35 0.20 0.220.32 المعيارية 0.81 1 0.29 0.33 0.21 0.24 0.35 التقليد 0.76 1 0.27 0.26 0.33 0.35 0.330.29الوعي البيئي 0.79 1 0.55 0.45 0.42 0.49 0.41 0.390.41 النوايا اختبار أنموذج القياس صمتظ س تلص دمص صغ ق ب عاجصم امىصماض ص متضصف ت ب صمرفل صغ تة ظ تيث صمف ص ا صمرة ي ب فلىاصدمغ دمص ت ص فلى تة ظ ت ب صمرفل صغ وم صمتطة ق ش صغ فظ اس صم صمر نددم صم فظ صمة ئظ فظ مدت و صمشينو ص ب لذص دتا ة صمراص، أخ زش صغ ق صبلل فظ دأااصم صماض ص و صمتظ تتف ض فظ صم ل ن ترصثا صمضل ت صم صم صماط م فيلص فلى فن ش امى صمتيث صمرةصش مرتل ُفت ض فظ صختةصم فقسب صمتيث ن تل ن صمى فص ا صمريصم صمذب د يت صمةصاا في .صمت ق رظ أ آخ ُفت ض فظ تل د ُ ةثم أ ةب صي و صمل ةلظ ن صم ر ج فظ صمريصم فقسصغ يصم صم ر ج فصدتُ َّم فص قغ فظ chin,2010 .)صم ق د صمةعا امىف صمر ب فلى اط صمريصم صمشةا فص قغ صمتيث صمذب (3د2 ف صتختةصم ف ض د ص (β لرب فص ا صمريصم ف صمف وظو دس ربفظ اط صمةعا ر فب صمر ملف و ب صمتص م دف صفلى صمرتل صمريت ا صمرةصش ملرتل قاظ: صمتيث صمتظ تع د ف ب 1.96س رتلص صما دم ب صمةصملب فصسبصمرعي ب صمتظ t ت ن ن س رب فظ صمش صغ وم صمتطة ق ت ب صمرفل صغ صمر ن دم د تيث ا اص ظ ف ب ملضل ت صمرة ي ب اترفب فلى ص ص تة ظ -1 ( ت أ hair et al ,2017دفن . 0.05( دهظ ف ب ف يت ز دتمب 0.31 فص ا صمريصم فلرب صماض ص و ا للب س رب صا م شي ف ب تل فظ صمةف صم صخلظ م اال فص ا صمريصم فلى ف ض ثةصغ مر م دممظ ا م صم ت اب ه ص أن صمتل فظ صمةف صماص ا صدم فظ امىد ف ظ مك أن ا صدم فظ يت صغ صمضل ت صمرة ي ب ر صم دا م دصا م ةدب صتلص. صيخ ز د فص قغ يصم صي فصد د فصدهصو صيدمىصم ب يب دفظ و مك تضم رعب ف و ب صمةعا. 31% يت ز ص ص ف ب صمةعا متة ظ ت ب صمرفل صغ صماض ص فظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص . نصمر ت م فقسب تيث ف ب ملضل ت صمرة ي ب فلى ص ص american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 66 www.americanjournal.org ( 2الشكل ) لألبعاد على المستوى الكلي النموذج الهيكلي 0.31, t=2.11(0.01) =β =0.182r β=0.39, t=3.08(0.00) β =0.42, t=2.13(0.02) 91=0.2r 30.2 =2r صمة ئظو ا للب س رب فلرب فص ا صمريصم -2 ملضل ت صمرة ي ب اترفب فلى صم فظ ( دهظ 0.39دم د تيث ا اص ظ ف ب دفظ و مك تتع ق ف و ب صمةعا صم ب يب صمثص ب د لصو ت م فقسب تيث ف ملضل ت . 0.05 ف ب ف يت ز دتمب فظ صمش صغ ف ب صمةعا ف يت ز صم تمب صمرفر ، فظ صمةعا صمعصمظ. صمرة ي ب فلى صم فظ صمة ئظ ملر مص دم د تيث ا اص ظ ف ب مل فظ صمة ئظ صمذب سصم ر صم صمرتل صمريت ا فظ هذه صمر الب ن صمتعل ا صم يةب ملرتل صمتص م د رص ه -3 . د في صي ه ص إن ا صدم 0.05( دهظ ف ب ف يت ز صم تمب 0.42 (و ا للب س رب فص ا صمريصم 2ظصه فظ صمراط يت صغ صمضل ت صمرة ي ب ر صم دا م دصا م ةدب امى ا صدم صم فظ صمة ئظ يةب س رب فلرب فص ا صمريصم. ده ص م صمةصاا ف ب مل فظ صمة ئظ ملر مص فظ صمش صغ ف ب صمةعا فلى د فصدهص ت م فقسب تيث ص فبصمت م تع ق ف و ب صمةعا صم ب يب صم ن صمتل صغ صمعصرلب فظ ص ص تة ظ ت ب 0.42 ص صهل متة ظ ت ب صمرفل صغ صماض ص و دفي غ صمضل ت صمرة ي ب دصم فظ صمة ئظ صمرفل صغ صماض ص أث ص فت م صمةعا دف ص م رب فص ا صمتع . فلى عا ع تة ظ ت ب صمرفل صغ صماض ص ص ص مص صمش صغ ف ب صمة فظ صإلم صممضل ت دم د تيث ا اص ظ ف ب ةصش -4 ( دهظ ف ب ف يت ز صم تمب صمرفر ، فظ 0.47 وو ا للب س ل فص ا صمريصمصمريتر م ن صمتعل ا صإلا صبظدفق صمرفط صغ صمر ن د ضر لص ت م فقسب تيث ف ب مضل ت صإلم صم فلى ص ص و صمف ف ب صيدمى صمةعا صمعصمظ .د ذمك تتع ق ف و ب صمةعا فيلص أظل غ صم تصبج دم د تيث ف ب دفلى صمشص لب .( 0.05اض ص ف خخفظ صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صم ( فلى صمت صمظ دهرص ف تصن تعب يت ز دتمب 0.41د 0.44 للب س رتظ فص ا صمريصم صمرف صم بو ا مضل ت صمت ل دصمضل ت 0.05.) د ُ ص، ه ص أن ا صدم فظ يت صغ صمضل ت صمرة ي ب ا فلى ا م ر صم دا م دصا م ةدب امى ا صدم يت صغ ص ص ف ب صمةعا صمرفل صغ صماض ص م س رب فلرب فص ا صمريصم .دفي غ ول ت صإلم صم ن تةص ن 0.23فظ دسب أم ص صمةعا متة ظ ت ب ن تةص ن صمرتل 0.17 ن تةص ن صم ص ص ودفي غ صمضل ت صمرف صم ب 0.20ت ل صم مم فيلص م في صم ص ص ودم ل تيث ول ت صم صمرفتر . ( 3الشكل ) نوايا تبني تقنية المعلومات الخضراء =0.42 2r الضغوط المؤسسية الوعي البيئي american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 67 www.americanjournal.org النموذج الهيكلي على مستوى المتغيرات الفرعية t=2.34(0.001) 0.47=β β=0.29 t=2.01(0.00) β=0.41 t=2.30(0.01) β=0.23 t=2.10(0.02) =0.31 t=2.11(0.00)β β=0.24 t=2.38(0.00) t=2.01(0.002) 0.44=β تيث ص دفلى صم ل ن أن س ل فص ا صمتع وف ف فص ص ات أ لص ة مب ين دمص ت ص مل ت رل أرق متع صمضل ت صي ث صمرفل صغ ت ب متة ظ فلى ص صهل صمرة ي ب صمضل ت تيث متع صماض ص ا صمرفل صغ ت ب متة ظ صمةعا ف ب فلى ص ص % ن صمتل صغ صمتظ تط أ فلى تل ص ص 60صماض ص . دفي غ صمرتل صغ صمريت لب صإلم صم و دصمت ل و دصمرف صم ب( ص صمه % تفي هص تل صغ أخ ز خصمج و ع صمةعا أد يةب أخطص 40تة ظ ت ب صمرفل صغ صماض ص و دتة ى س رب ف ب صمةعا م صم صس. د ذمك تثةب رعب صمف و ب صمف ف ب صمثص بو د ضر لص ت م فقسب تيث ف ب ملضل ت صمرف صم ب فلى ص ص تة ظ صمر ن ت ب متة ظ صمتطة ق صمش صغ وم تيث ف ب فظ صمثصمثبو د لص ت م فقسب صمف ف ب صمةعا صماض ص و دف و ب صمرفل صغ مضل ت صمت ل فلى ص ص تة ظ صمر ن فظ صمش صغ ف ب صمةعا صمش صغ وم صمتطة ق متة ظ ت ب صمرفل صغ صماض ص . صمتظ مل tدصم ع صتمترصفظ ودصمريت ز صمتفل رظ ( تمب س رب مل تضم دم د تيث د دتمب ف ب ملرتل صغ صمضص طب صمفر و -5 صمرفتر م رفلص فتةب متع ف ب فقسب صمتيث . 1.96تتاصدا نتائج الدراسة ومناقشتها أوال: عرض نتائج التأثير المباشر ومناقشتها صمتظ أشصمغ تصبج عث ص صمة ئ ب صمي ص صغ دصمل صبم صمش صغ وم أن صم لبو دتف ض فلى صمعة ب صغ صمل ئصغ ت رلص ع دصً مب يصً م فم مص صمش صغ ف ب صمةعا متة ظ رصم صغ ت ب صمرفل صغ صماض ص و د يب صمةصاا هذه صمتطة ق صتمت صم لص ُ رص فظ ص ب ص تشصمهص صمذب يتل م لص صمع ، صم ت اب امى ا ب صن صمش صغ صم صمةعا ل ب صماض ع امى صمل صبم صمعة ب ت دوم اة م فلى صم صم ذمك. دتطص ق تفي صمةصاا م ص أشصم م فظفلى صف صغ ف م ن صمل ئصغ صمرتا بو د صمتصمظ تة ن xia et al ,2021 ف م تعرللص ملضل ت صمتظ ( د ضر أن صمش صغ صمررل ب مل طصع صماصص أ ث ايص ب مل صبم صمة ئ ب يةب تيت لص ن صماصمجو فقدم فلى مك أن صت تثرصم صمة ئظ ملذه صمش صغ ة ن أ ث ايص ب مل صبم صمة ئ ب ل ب صمع ، فلى ص صغ د فص قغ تفض ل ب ن صمعة ب دصمر ن صمف ص صمرصم بو دم ل ر مم م م ملش ب. مص صم ت اب ص هذه دمص صغ دخصمفب أن ول ت blackman et al,2013 ; roxas , 2012;2018فظ أظل غ صمتظ ) صإلم صم صسا تيث صً فلى صمررصم صغ صماض ص د ةة صي قرب صمفضفصوب ية ص صمتظ تفرا فظ صمةل صن صم ص ب و ا ا صن صمةف صمت ق رظ صإلم صم صمت ل صمرف صم ب صم ص ص ع تة ظ ت ب صمرفل صغ r2صماض ص =0.60 صم فظ صمة ئظ american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 68 www.americanjournal.org صغ صمرت ب و دتة ن صمرة يصغ وف فب و دصإلمصدم صمي ص ب ع ددم ملة ئب صمرة ي ب م س تط مصً د ت صً رص ه صمعص، فظ صتست صد دخة م سل ل فظ صت تثص، صمت ق رظ و فظ عث ص دفلى صم ل ن دم د ف ن صمل ئصغ صمريةدمب فن صمة ئب و ددف صتلص صم صبرب ملرعصفقب امى صم دمب صم خ م دصتفت صم امى صم فظ يهر ب ت ب صمرفل صغ فلى صمة ئب و ات صن تيث هص م س صمريت ز صمري ، و د دن شك د مك صماض ص فلى صمريت ز صمة ئظ دصتست صدب فظ صمر ز صم دصمط ا . د ن صما صمرقاقب أن تيث ول ت صمت ل أست ر فص ( صمتظ alziady and enahy,2019 ب ِ ص ن ول ت صإلم صم تاصدام تيث صمضل ت صمرف صم بو دمص غ صم ت اب اصمفب م مص فذغ فلى ف ب ن صمش صغ رل م صمعال فظ عصفقب ب سصم ددوفب صمضل ت صمرف صم ب صم تةب صمثص ب ف ول ت صإلم صم. يب صمةصاا رف ى صن مص صمش صغ ف ب صمةعا ص ت ل ص امى ت ل صمش صغ صم صمعبو أد صمش صغ صي ث اصاص فظ سطصع صم شصتو د مك امى صن هةت ف ف ن فضلل فضصو د تع ث ن صمللب فيلصو د ن ثل رم ملل مك صتتقع فلى صمتاصمر صم صمعب صمتظ تة ن صمتطة ق صمرف ن صمش صغ وم أت ص، فن فضق د ل لل ئ ص ت ملصتلل صمذ ن ص ب صم صبن فلى دصمتف ف ة مب للو غ ن دمص صمع دد صمتظ ملص م صدم فظ تة ظ ةصدمصغ تل ف امى صمرعصفقب فلى صمة ئ ب. صمش صغ صمتظ مص وتحلي :ثانيا اختبار عرض نتائج المؤسسيةل الضغوط بين العالقة في البيئي للوعي الوسيط تقنية مجتمعة الدور تبني ونوايا المعلومات الخضراء ن صم فظ صمة ئظ ت صمفقسب ن صمرتل صمريت ا دصمرتل صمتص مو أدوم اط صمةعا صتفت صوظ صمذب ُم ل فظ ص ب صمةعا صمتيث . تيث هص داظلصم ةش صغ فن هذص ا ص امى ف ة س هذه صمر الب ن هذص صم دمصد ل ب دهذص ل ص صختةصم تع ف رص هذص صمر صم ف ض امى صمفقسب ن صمضل ت صمرة ي ب د ص ص تة ظ ت ب صمرفل صغ صماض ص و د فلصو دصم ر ، صم فظ صمة ئظ ت ت ب افصدم صمر مصغ صمتظ ت تتطلب ت ا م صمف صغ صم يةب ملتيث صمرةصش و امى صغ صم صتبو دص ت صمةصاا فل ص صختةصم تيث رص رةن تطة لص فلى ف صغ يااصم رل م ةا .ا صمت ا م صمرتل صغو أد ت ا م صمف صغ صإلا صب بدت تتطلب صفت صوصغ ا ، شة صمرةصش ةدب امىث بو دصتمتةصا صمتيث صم رب صإلا صب ب صم ب امىهذص صي ل ر ا رص عيب . صمط صبق صيخ زصمتفصع صمرتل صمتص م دص، اا صب صو امى( قاظ أن صمريصم ن صمرتل صمريت ا 2لى صمشةا د ص م صمريصمصغ ن تل صغ صمةعا صمقصه م ف دصمريصم ن صمرتل صمريت ا دصمرتل صم دأ ضص صمريصم ن صمرتل صم دصمرتل صمتص م دص، اا صب ص أ ضصو دتي مر فلص صمرةصش ن صمتيث اد . (hair et al,2017 فظ صتاصه دصا رص افا صم صتب ن صم ع صمتةر لظ فلى دفق صم رف صمذب دوف (0.47) صم م ت امىات ص درا سل قو ( ة د0.31 لغ (2 قل فلى صمراط ملرتل صمريت ا فلى صمرتل صمتص م صمذب أم صد ن ثُل ت صن ع د ع صمتيث ل صمرتل صمريت ا فظ تفي صمرتل صمتص م. ب ق امى م د صمتيث صمرةصش و رص ش preacher and ا دهص تةم صمةصاا صماط صغ صمتظ د ف صمتيث صمةلظو امى . د فتر فلى اال صمتيث صمرةصش يةب صم ب hayes ,2008د فصدهص ايصر ) variance accounted for (vaf) صمرةصش يةبس رب ع د صمذب صمتيث ن صمتيث :صآلت بدتة ص ملرفصدمب .صمةلظ p2*p3/p2*p3+p1 0.31صمرتل صمتص م= امى فص ا صمريصم صمرةصش ن صمرتل صمريت ا p1 :ا ا ان p2 0.39صمرتل صم امى فص ا صمريصم ن صمرتل صمريت ا= p3 0.42صمرتل صمتص م امى فص ا صمريصم ن صمرتل صم= 0.39*0.42/0.39*0.42+0.31=0.34 فظ ص ص تة ظ ت ب صمرفل صغ صماضخ ص فيخ خصتب صمتيث صمرةصشخ % ن صمتيث صمةلظ ملضخل ت صمرة خيخ ب34د ف ظ مك أن د ص دص ب فيخ هص صمتيث صمرةصشخ صمرتيتظ ن دم صمتيث صمرتل صم خ .ملرتل صمريخت ا فظ صمرتل صمتص مو دصم يخةب صمةصس ب american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 69 www.americanjournal.org % فخين صم فظ صمة ئظ رخخخخف خي خ تل ت خخخخ م ب خص صمفقسخب ن صمرتل صمريخخخخت خا 80% د20سخ دسفخب ن (vaf) س رخب د فيخخ صي ه ص أن صم فظ صمة ئظ ت خخ م ب ص صمفقسب ن صمضخخل ت صمرة خخيخخ ب د ص ص تة ظ ت ب صمرفل صغ .دصمرتل صمتص م امى تشخة ا ص ص تة ظ ت ب صمرفل صغ صماضخ ص فلى ع ةصشخ دمةن أ ضخص ن صماضخ ص و رف ى أن صمترصثا صمرة خيخظ ةدب صم فظ صمة ئظ صمذب دمم د امى ا صدم فظ ص ص صمر ن ف ب صمةعا متة ظ ت ب صمرفل صغ صماضخ ص ود ن ثُل فصن فض ن تيث تل تفيخ ه خصتب صم فظ صمة ئظ .دهذص ف ظ أن صمضخل ت صمرة خيخ ب صمضخل ت صمرة خيخ ب فلى ص ص تة ظ ت ب صمرفل صغ صماضخ ص م ا هص تةث فلى ص ص تة ظ ت ب صمرفل صغ صماض ص د ة ن صمتيث أ ة ا ص آامتلص آم صغ دصخل ب . ( 4الجدول ) نتائج تحليل الوساطة صمريت ا صمريصم صمرتل صم صم صمرتل صمتص م صمريت ا *صم صم صمرتل صمتص م vaf صم م م بظ 0.34 0.16 0.42 0.39 صم رب األداء-تحليل خريطة األهمية: ثالثا فظ صمتيث صمتف ف فلى أهر ب دأدص ا تل ن تل صغ صم مص ب صمريت لب صإلم صم و دصمت ل و دصمرف صم ب ودصم فظ صمة ئظ( ل ب صمةصاا تعل ا أ تفصن صماض ص ( صمرفل صغ ت ب تة ظ صمتص م ص ص صمرتل ت صم تصبج رذمب صمذب مصيهر ب -صيدص فلى صمرت طب صم ل ملتعل ا يخذ صتفتةصم صمريصم إوصفب ف مت صغ فص ا صي ص ب صما ب ب صمر فصغ صمل ةل ب ط ب صمرفصدمب صمر صمةص بم ممصغ صمل ةل ( ringle and sarstedt, 2016 تل صغ مل ر ج صمةل ب صمتيث صغ صمتعل ا أدا ص ا هذص ظ .د ممب hair)صمرتل صمةص ن ن صي فصد صميص ب ملذص صمةف مرتل ص ن ف ن فظ ر ج يصم صمر فصغ صم ل ز صما ب ب م ت دممصغ et al,2017) . صيدص صمرتل صغ صمتظ -تعل ا صيهر ب د ةشف 100صمى 0د مك ن خق، س صس صي فصد صمر مد ب فلى لل ن (. رص يصف فظ تشا د صتن صمضفف صمتظ تيتل م صهترصم أ ث . nitzl and chin,2017أدص افض تعقى يهر ب فصم ب د أهر ب صي فصد صميص ب فظ تشة ا صمةف رص رثا ت دممصغ صمرتل صمةص ن صمتيث صمرةصش د صمرةصش ((دترثا صمتيث صغ صمةل ب . د ص م صمرفط صغ (3صمشةا صمريتر ن أ ر ج صم صس فلى يت ز صمرتل صغ صمف ف ب صمتعل ا( تصبج 5د ة ن صما د، أدص هص. صمرتل صغ صي ث أهر ب فظ صمتيث فلى ص ص ف ب ( دتع ص صمفر د صمذب م تعب ف صن صمتيث صمةلظ ا أن5صمتظ ف ولص صما د، إلم صم وصمت ل وصمرف صم ب وصم فظ صمة ئظ ( فلى صمت صمظ. رف ى أن صإلم صم ه صميص ق صمةعا متة ظ ت ب صمرفل صغ صماض ص هظ ص صمذب ف ض صم يصم صمفر د صيخ فلى ملب صمى ص ت ل ص صمريتل ف صم ص ص(دهةذص ددصم ك. دا ص صمرتل تيث فلى م أس ز صمذب صمذب عقى م ة ن صتهترصم ه صيسا أدص ود يتظ تل صمت ل ف م دممصغ صمرتل صمةص ن صيدص ( ا أن تل صإلم صم ( تُيتا م صمتيث صغ صمةل ب صمرف صم ب متفي hair et al,2017 ةصش م رص يت مب ن صتهترصم لرص متعي لرص. دفن صميص ق ا م دصا م ن أدص صمرتل صمل ف ر صم اال صمتيث صم صدم فظ أدص صمرتل صيدص فلى صم ع صمتصمظ: -تعل ا صيهر ب صمرف صمب ملرتل صميص ق فلى صفتةصم ثةصغ صمف ص ا صيخ ز. د ا هذص صم رف امى american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 70 www.americanjournal.org ( 5الجدول ) نتائج تحليل األداء واألهمية للتأثير على نوايا تبني تقنية المعلومات الخضراء المتغير الهدف مباشر تأثير على النوايا مباشر غير تأثير على النوايا تأثير كلي على النوايا الموحدة الدرجات ير غمتوسط المعيارية للمتغير الكامن 69.44 0.56 0.09 0.47 امغاإلر 70.26 0.51 0.07 0.44 التقليد 70.54 0.49 0.08 0.41 المعيارية الوعي البيئي 0.31 0.31 71.43 ف ةدب صمى ا صدم فظ صم ص ص 70.44صمى 69.44 عث ص ا فلى ة ا صمرثص، أن صم صدم دا م دصا م فظ أدص ول ت صإلم صم ن ( خ طب تعل ا صيدص . 4د ف ض صمشةا ( دهةذص صم يةب ملرتل صغ صيخ ز .0.56متة ظ ت ب صمرفل صغ صماض ص ر صم ( 4)الشكل األداء -األهمية تحليل دفظ و ص ت م م صمةصاا صم ، ان عث ت س صمع دد صم ص مإلمص ب فلى تيصؤتغ صمةعا صم ب يبو ددرا امى أه صف صمر ش دم امى ا ص دصثةب رعب ف و صت . االستنتاجات والتوصيات فظ صمش صغ رل م صمعال صمر ن صمرة ي ب فلى ص ص ه ف عث ص صمى دمص ب تيث صمضل ت صمرة ي ب صمريتر م ن صم ق ب ث ل تفي صي ةصر صمتظ مفلب صمش صغ وم صمتطة ق تاص يب فظ تة لص ت ب صمرفل صغ صماض ص و د نمتة ظ ت ب صمرفل صغ ن مأب خقرت أن تة ظ دسة ، صمرة يظ. دص طقسصصماض ص فلى صم ل ن أ لص تتف ض ملضل ت صمرة ي ب فيلص فظ اصملص ف م د صغ أث أ لص د صمررصم بومرف ظ إدصمم صمش ب أهر ب هذه ادخص، ت ب صمرفل صغ صماض ص فظ صمش ب ت ن فظ صمشاد ص ص تةشصف صم دم صم مل فظ صمة ئظ رف أا صم دصفم صم ب يب مليل ك صمة ئظ فظ صمفقسب ن اصدم ص فصموا اص ظ فلى صمة ئب شةا مفل ص ت ص ت صد مل ق ب صمرة ي ب طة قو رصصمتتة ظ ت ب صمرفل صغ صماض ص فظ صمش صغ وم صمرة ي ب د ص صصمضل ت االرغام التقليد المعيارية الوعي البيئي 69 69.5 70 70.5 71 71.5 72 0 0.1 0.2 0.3 0.4 0.5 0.6 ء دا أل ا األهمية االهمية -خريطة تحليل االداء american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 71 www.americanjournal.org لد صمةصاا صمى ار ع ص ت تصمصغ ص للص ت ر صغ متشا م صم ص ص متة ظ ت ب صمرفل صغ خ تضر ن ددم صمر فظ فرل صغ صمش ف ب. د ولص فلى صم ع صتتظ: ف صمرفت اب م مص ب صمر و ع يت ةق صم مص بو دصمراصتغ عةلص صإلشصمم صمى ع دصغ صماض ص و االستنتاجات -أوال فظ -1 صماض ص و ع صخن صمرفل صغ دشل قرب أ أدرت ب صمش صغ صمرفل صغو مصه ب س صس ص ت صت ن ف لص صمةعا ملش صغ صمة بدتة لص رةن صن يصف فظ تاف ض صمة رب صمتطة ق.تة لص ددوم رصم صتلص وم إلدخصملصو امىدص تف صدهص صت ت ص ب.د ةصامم مل د صمرضظ ع أ صد امىرل م صمعال رص ةدب صمعةرب أتةصع لج فصمر بو د نيث صتلص ت عل ب د صمع ددو ف تدتلصصمضصمم صمتظ تيةةلص ت ب صمرفل صغ فظ صمة ئب صمتيث صغت تة ن -2 شص ا تفصدن صمار م تة فلى تة ظ ت ب صمرفل صغ صماض ص مر صملتلص. صم تصبج -3 صمرف ن أ ث صإلم صمن ول ت أ ب صمرفل صغ إدصمم اصاص فظ تعف ص ص متة ظ ت ب صمتطة ق صمش صغ و ع صمش صغ إدصممن صمرف د ب صماض ص . د عص صم ل ك صمةعا ت ل صمرفل صغ صيخ زصمش صغ وم ت ب تة ب صمذب صمةعا س صمرف صم ب ت د ص ص صمر ن ن صمش صغ دصمضل ت .فظ صمي ا تر مد صمب ةص ب صمشينودا ب اص لذص صماض ص و ت ب صمرفل صغ صماض ص صمت صم صمترصفظ متة ظ صمريتر ن -4 صمة ئظ ت ب اايصسصم فظ تة ظ صمفقسب ن ص ص فظ صم ددم مفب صمذب ل د ة ص صمر صماط د ف فب م ب ب.د ص ب صم صتب اترف وصمرفل صغ صماض ص دصمضل ت صمرة ي ب ف ب صمة د مةب ( د ن س ص م هذه صمفقسصغ الد امى : ظل غ ف ن ن فقسصغ صتمتةصت -5 ت ت ن صم ص ص صإل اص ب متة ظ ت ب صمرفل صغ صماض ص صمشةصر ودصم يص و دصمذ ن ترتف ن ريت ز تفل رظ تفم ودفلى صم مك .ص صمتع صغ صمة ئ بتة ن أن صمشةصر ودصم يص و دصمذ ن ترتف ن ريت ز تفل رظ تفم هل صي ث دف ثانيا: التوصيات م صماض ص و ن ا ا س م تيث هص رفلص ع د م ص ص تة ظ ت ب صمرفل صغ صيد،فظ صمر صم تيتظ صإلم صمتصمرص صن ول ت -1 تف ص ص صمة ئ ب صمي ص صغ م ل فن صمريةدمب صما صب صتب صمر ن صميلطصغ صمر ن صمت بو دصمر صمد صمرصم بوت ف صمر ش د.دصمت م ب م ففلل ر ر صميل ك صمض ة بو دصإلففص صغ صمعة بو دصإلفص صغ صمش صغ رل م صمعال متشا فلص امى دصتتعصدصغ صمعة ب د صمعة ب ت ل تر ا ا د دصم دص و صمارف صغو م -2 مر صمف دش صغ صمتص ن فلى ع ةفا ملذه صمش صغ م ل خصمتب ت ق ص صمتفصدن م وفلى صست ص ت ب صمرفل صغ صم ب ملة ئب أفةص هص.مرفل صغ صماض ص دتعرا رصم صغ ت ب ص إدخص،صم ملش دع مأل ةلفب دصمتف ف دم ت ب فصموصمرير ع دصمر د دصمر بظ شةا صيفقمصمفرا م خة ص تا ن م ش صم فظ صمة ئظ فظ د صبا -3 صمتفص ا ن شص لص ورصن صم اص ف صإلم ص صغفلى يت ز صمش ب دصمت د ج مفة م صن هذه صمة بصمرفل صغ فظ تاف ض صمة رب دصماصمج. م مد ن دا صبن لتر ن ض ب صمتل صغ صمر صخ ب فظ صم صخا مدص دسب ي لل صمرة يظوفظ صمت ص صمش ب ث ر صمش ف ب فظ اصملص صً ة صً فظ صمش صغ رل م صمعال ددم صمر ن ةدب -4 ف فتلل صمتع صغ صمتظ ت صمللص ئت ص فن ت ق ا ص دهذص يتل م رصم تلصود ةصن صماض ص وصمش دع تة ظ ت ب صمرفل صغ صمل ف.دت م ل لل ع هذص صمة ئظو داش ص للدف لل وم ص ب دتط ف ب م صدماتط ص ج ب ةصدمم مت ب صمرفل صغ صماض ص فلى ي ص ظ ا صم صمعا يس ى س م ن صمتيث تف ن فلى صمش صغ أت ت شلا شةا أ -5 صمرشل و متاصدا وةص ب ودام ص صغ ت فذهص دتضفلص وم صمتطة ق وت مللص ص ب دصوعبه صك ددن أن ة ن يت ز صمر قرب و american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 72 www.americanjournal.org و هشبو د ة يصغ م كو داتصم ت ق رظ مخ تر قصم سص ظ صمذب مة ئب صمش صغ وم صمةعاصتمترصفظ دصتست صدب .د فص شة ف د ب محددات الدراسة وتوصيات لبحوث مستقبليةثالثا: لفب صت تةصه صمى ع دصت صمتظ تتالى فظ رةصن أنم م ن صمض د فت صمةصاافلى صم ل ن أن صم مص ب ت يب أه صفلص صمر ش دم د صمتصمظ س ت ف م ص م طب دصا م ن شل ف بو فظ معقب ا ب صمعالو رل م تة د أن تصبا ص ت غ صمى ص صغ ُمرفب ن ف ب يتةف أن تاضم صإلمص صغ دتصت تةص بو دصمتة صمتعل ا فلى ص صغ ُمرفب ص طب .متة ظ ت ب صمرفل صغ صماض ص صهل م ص فن مك ت صدمب أ ئلب صم مص ب تيث رص ع ن فلر ص ملفقسب ن أ فصد صم مص ب. فضق صمرعترا.صمتع صمرتيخ و أدصمى صيدمصك مل ر ، صمر و ع صمى دممصغ د .فظ صمة ئب صيد م ملتفر لس ت افللص سص لب صمف صس بو دهذص صمضل ت صمرة ي ب ن ق م صمث صفب صمراص، دم ج هذص صمة ئبو د فللت ب صمرفل صغ صماض ص صاب فت اب أ صم صاثظ أ قرب صمرفل صغ صمرلتر ن فإنص ف ن صمفلل د ط صم مص ب فلى ش صغ ة م لصت ظ ف تل صتأ ئلب أددتطة لص صم طصع صمعالو د رة للصم قرصغ صم ق ب فصم. ت م دس تة ن صم مص صغ .فلى ص ص تة ظ ت ب صمرفل صغ صماض ص تفصفل ب د صن تيث صتلص د طبو أدصمرة ي ب إوصفب تل صغ أخ ز صمط م ب صمتظ تتفرق فظ فلل ص ص تة ظ ت ب صمرفل صغ صماض ص يصم ة م ملع ، فلى تصبج م م. references 1. abdul aladheem,d.,(2018). studying the effect of institutional pressures on intention the managers of small enterprise at thi-qar province to adopt environmental disposal of electronic waste, managerial studies journal. 10(21),pp.2-40. 2. abdul aziz, n.,senik,r., , yau,f. , san,o.,and attan,h.,(2017). influence of institutional pressures on the adoption of green initiatives, int. journal of economics and management 11 (s3) , 939 – 967. 3. ahuja, p., muthiah, k.,( 2021). advances in green 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state ownership, sustainability, 13, 1368. 75. zhang, b., bi, j., yuan, z., ge, j., liu, b., bu, m.,(2008). why do firms engage in environmental management? an empirical study in china. j. clean. prod., 16, 1036–1045. 76. zhang, b., yang, s., bi, j,.(2013). enterprises willingness to adopt/develop cleaner production technologies, an empirical study in changshu, china. j. clean. prod., 40, 62– 70. 77. zhou j., sawyer l., and safi, a., (2021). institutional pressure and green product success: the role of green transformational leadership, green innovation, and green brand image. front. psychol. 12:704855 78. zhu, q., geng, y.,(2013). drivers and barriers of extended supply chain practices for energy saving and emission reduction among chinese manufacturers. j. clean. prod., 40, 6–12. 79. zhu, q., sarkis, j.,(2007) the moderating effects of institutional pressures on emergent green supply chain practices and performance. int. j. prod. res. , 45, 4333–4355. صمرلعق صت تةص ب( يل هللا صم ارن صم ا ل صمي /صمي م صمريتا ب صمرعت م دي ةل .المؤسسية على نوايا تبني تقنية المعلومات الخضراء: الدور الوسيط للوعي البيئيد تأثير الضغوط دم عث ص دمص ب فلى ترصس ةصش صمفراو دتترتف ن إ ةص ب فلى صإلمص ب فن ف صغ صت تةص ب يف ص صت تئ صس أ ةل. ت صن دت ةل ص فصبق صمشة دفق ل صت قاقب: مر م صإلمص صغ تة ن ع ام صمةصاا دت أا طلم فل لص دتيتا م ي صض صمةعا صمعصمظ ف -1 ت ت م امص ب رع عب دامص ب خصتئبو دا رص هظ دملصغ ق اتلفب -2 american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 79 www.americanjournal.org د أب مص ب ن م ص ب ددتم أ ةظ مرن ب صت تفيصم فن ف صغ صت تةص ب أ 2 م صمةصاا طصسب مر اص ظ س رتلص -3 صمةعا صمراتلفب صمةصاا صم يل صيد،: صمرفل صغ صمشا ب أ ثى صم ع صتمترصفظ -1 ب 60 ب أ ة ن 60-51 ب 50-41 ب 40-31 ب 30-20 صمفر -2 فل صد ل م فصمظ مص ف ب اف صد ب صمتع ا صم مص ظ -3 سطصع صم شصت -5 صم يل صمثص ظ ف صغ صت تةص ب مضمون الفقرة ت ق اف و م ير غ ما ما ت ق اف و م ير غ دة ش ب ق اف و م ير غ ي ند ع ي رأ ال ق اف و م دة ش ب ق اف و م ما ما ت ق اف و م ستخدام تقنية المعلومات منا االحكومة تطلب 1 الخضراء استخدام تقنية المعلومات الخضراء ضروري 2 للوائح الحكوميةلالمتثال لتشجيع استخدامعقوبات حكومية ال لوائحفرض ال ت 3 تقنية المعلومات الخضراء يعتمد نمو شركتنا ورخائها على المجهزين الذي 4 وا تقنية المعلومات الخضراءنتب االبتعاد عن الموردين الذين تبنوا ممارسات بوسعنا 5 تقنية المعلومات الخضراء بسهولة يعتمد نمو شركتنا على الزبائن الذين يساندون 6 ويشجعون مبادرات تقنية المعلومات الخضراء american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 80 www.americanjournal.org جراء تبنيهم تقنية اكتسب المنافسون منافع كبيرة 7 المعلومات الخضراء نفسهافي الصناعة مديح الثناء والنال المنافسون 8 لتبنيهم تقنية المعلومات الخضراء تبني المنافسين تقنية المعلومات الخضراء خلق 9 انطباع حسن عنهم المجهزين الشركات المنافسة التي تبنت كبار ي فضل 10 تقنية المعلومات الخضراء شرعت الشركات المنافسة بتبني تقنية المعلومات 11 الخضراء يستخدم بعض زبائننا تقنية المعلومات الخضراء 12 استخدام تقنية المعلومات الخضراء ليس في دائرة 13 كبيرة من مجهزي شركتنا اهتمام نسبة تأثر قراري بتبني تقنية المعلومات الخضراء ي 14 بالترويج لها من الجهات الحكومية تشجيع الجمعيات واالتحادات المهنية دفعني صوب 15 تبني تقنية المعلومات الخضراء اشعر بقلق شديد تجاه كوكبنا بسبب التغيرات 16 المناخية العنيفة المساهمة في حل المشاكل البيئية مسؤوليتي 17 الشخصية يتعين على كل شخص المساهمة في حماية البيئة 18 من التدهور تقنية المعلومات الخضراء في توقع أن تدخل أ 19 شركتنا قريبا تقنية المعلومات ممارساتأنوي االستمرار ب 20 عموم الشركةالخضراء في american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 81 www.americanjournal.org 21 تقنية المعلومات خطط لإلبقاء على ممارسات أ في شركتنا وأشجع على االستمرار بهاالخضراء american journal of business management, economics and banking issn (e): 2832-8078 volume 39, august 2025 p a g e | 9 www.americanjournal.org econometric analysis of bank asset efficiency bakriddinov sharofiddin associate professor, tashkent state university of economics e-mail: bakhriddinov5599@gmail.com orcid: 0000-0001-7899-0217 a b s t r a c t k e y w o r d s this article examines the content and essence of bank assets, the opinions of foreign economists on this issue. an econometric analysis of commercial bank assets based on various models is also carried out, and a general conclusion is given. commercial banks, assets, hausman test, the fixed effects, return on assets, cash assets, central bank funds, stocks, total investments, total assets with other banks, loans and leasing, liabilities ratio, net interest margin, securities. introduction in the context of the reform and transformation of the banking system of the republic of uzbekistan, priority tasks have been set for the privatization of banks, the sale of existing state shares in commercial banks to foreign investors, and the introduction of modern service practices in banks. according to the decree of the president of the republic of uzbekistan no. pf-5992 dated may 12, 2020 “on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025”, “the lagging behind of large commercial banks in the transformation processes in accordance with modern requirements in the sector, the delay in implementing corporate governance standards, information technology products, asset and liability management, and modern methods of communicating with customers” indicates the existence of significant problems facing banks.[1] also, expanding the number and scope of remote banking services, including contactless payments, through the introduction of modern information technologies in the activities of banks will serve to develop digital banking services of banks. also, according to this decree, the state is tasked with conducting an inventory of banks' assets, identifying assets that are not specific to their activities, and taking measures to sell them, which requires the introduction of mechanisms for effective management of banks' assets. literature review it is advisable to review the research conducted by domestic and foreign economists on the management of bank assets in order to reveal the content of bank assets and optimize their composition, and increase the efficiency of bank operations. american journal of business management, economics and banking volume 39 august2025 p a g e | 10 www.americanjournal.org research on the management of assets and asset portfolios of commercial banks has been widely studied by foreign economists and is still being conducted today. the famous american economist d. sinki, in his work “financial management in commercial banking and in the financial services industry,” discussed the three stages of managing the assets and liabilities of banks. in particular: stage 1, general bank asset management; stage 2, refinement, i.e. bank liquidity management, loan management and other asset portfolio management; stage 3, bank performance management based on achieved financial results.[3] according to the scientist, the income-generating assets of banks, excluding the "concrete and glass" (i.e., fixed assets such as bank buildings), play an important role in alm (asset and liability management). as the basis for asset and liability management in banks, asset categories, quantity, and interest rates are important in asset management. [3] in bank asset management, various measures and methods are used to form a portfolio of assets resulting from the active operations of a commercial bank. asset management in banking originated in the usa in the 1960s and initially aimed at managing the level of risk associated with changes in interest rates.[4] until this period, commercial banks used certain instruments or specific operations to manage assets and liabilities. however, today, changes in the banking system, the increasing intensity of the banking services market, and the development of information technologies have created the need for asset management in banks to ensure a balance between high returns and risk levels. the well-known economist p. rose further explains the essence of asset and liability management of banks, stating that “the essence of asset and liability management is seen in the formulation of a strategy and implementation of measures that ensure that the composition of the bank’s balance sheet is consistent with the bank’s strategic programs.”[5] in addition, p. rose emphasizes the goals of using bank assets and ensuring their liquidity for the bank to exist. banks are required not only to fulfill their obligations to customers, but also to ensure high profits and achieve important goals for bank shareholders by increasing the bank's profitability. analysis and results econometric analysis is of particular importance in analyzing the efficiency of commercial banks’ assets. there are a number of models in econometric analysis. below, we will analyze the econometric analysis of bank asset efficiency based on these models.. results and discussions for model 1 the hausman test is a statistical technique widely used in panel data analysis to help determine whether a fixed effects (fe) model or a random effects (re) model is appropriate for a data set. panel data combine time and cross-sectional (individual or organizational) measures. the choice between fe and re models depends on how unobserved individual characteristics are distributed and how they are associated with the independent variables. the fixed effects (fe) model assumes that these unobserved individual characteristics (e.g., factors specific to each firm or individual) are associated with the independent variables and assigns a separate baseline value to each cross-sectional unit (e.g., firm or individual). in other words, this model takes into account the unique characteristics of each unit. the random effects model (re) assumes that these unobserved characteristics are not related to the american journal of business management, economics and banking volume 39 august2025 p a g e | 11 www.americanjournal.org independent variables and includes them in the error term of the model. the hausman test tests this assumption the null hypothesis (h₀) is that the random effects model is preferable, that is, the unobserved individual characteristics are not related to the independent variables. the alternative hypothesis (h₁) assumes that the fixed effects model is preferable, because such a relationship exists. if the null hypothesis is rejected, then the main condition of the re model is violated, and in this case it is recommended to use the fe model, because the re model leads to incorrect and biased estimation results. the results of the hausman test for model 1 were as follows: chi-square statistic 498.14, degrees of freedom (df) – 7, and p-value 0.000. since the p-value is very small, it is statistically possible to reject the null hypothesis. this means that there is a significant relationship between the unobserved individual characteristics and the independent variables. therefore, the fixed effects model is considered appropriate for this analysis. by using the fe model, all characteristics that do not change over time are controlled for each unit in the panel. as a result, the error caused by not taking into account factors that differ between different units but are constant over time (omitted variable bias) is prevented. in conclusion, based on the results of the hausman test, it is recommended to use the fixed effects model in model 1. this ensures the reliability and consistency of the analysis results table 1. hausman test for model 1 hausman test for model 1 test summary chi-sq. statistic chi-sq. d.f p-value cross-section random 498.14 7 0.000 the fixed effects (fe) regression model uses a panel data set of financial indicators as the dependent variable to study the determinants of roa. the results of the analysis show that some variables are statistically significantly related to roa, while others are not. cash assets (ca) have a significant and positive impact on roa. this means that when a company or bank has more cash, profitability improves. this result is consistent with previous studies, in particular, studies that have shown that liquidity reserves play an important role in maintaining financial stability and increasing profitability. in particular, studies by bourke and molyneux and thornton have shown that high liquidity has a positive impact on bank profitability.[6,7] central bank funds (cbf) also show a positive relationship with roa. this result suggests that banks’ access to central bank resources is a factor that ensures short-term stability and profitability. this has been widely observed in research, especially after the 2008 financial crisis. there is a positive and statistically significant relationship between stocks (s) and roa (return on assets) (p = 0.037). this means that investing in stocks increases profitability. this result is consistent with previous studies, confirming that income from stocks is a reliable source of non-interest income during periods of low demand for credit. on the other hand, total investments (ti) have a negative and statistically significant effect on roa. this result is in contradiction with some previous studies, since in many scientific studies, an increase in the volume of investments was considered to be positively related to profitability. however, a negative relationship could indicate a misallocation of investments or a decrease in profitability (diminishing returns) due to overinvestment. american journal of business management, economics and banking volume 39 august2025 p a g e | 12 www.americanjournal.org other variables – total assets with other banks (tfob), loans and leasing (cal), and customer liabilities ratio (levr) – do not show a statistically significant relationship with roa. this suggests that these indicators are not important in explaining changes in profitability in this model and the selected sample. these results are reminiscent of the conflicting evidence in the literature on levr – that levr has different effects in different contexts and countries. also, the liquidity ratio (liqr) is strongly negatively related to roa, which is an intuitively unexpected result. that is, it means that holding liquidity reserves above the optimal level leads to underutilization of resources and, as a result, lower profitability. this is consistent with the trade-off theory of liquidity management, which suggests that overly cautious policies can reduce profitability. these results, determined based on the fe model, allow for a deeper understanding of the financial factors that affect bank profitability through roa (return on assets). in particular, the positive and significant impact of cash assets (ca) on roa indicates that banks have a stronger ability to cover short-term liabilities, respond to unexpected expenses, and reduce risk. this contributes to the sustainability of profitability. this view was advanced by bourke and molyneux & thornton[6,7] and has been confirmed in recent studies by dietrich and wanzenried and ahamed[8,9]: banks with strong liquidity positions have achieved higher profitability, especially during and after financial crises. the result for central bank funds (cbf) is positive and marginally significant, which means that access to central bank financing can increase short-term returns. this is especially important in light of the monetary policy pursued by central banks in recent years. for example, hashem[10] found that banks’ access to central bank funds during the covid-19 pandemic helped them maintain their earnings and capital reserves. equity (s) is positively and significantly related to roa. this result further confirms that non-interest income from investments has a positive impact on bank profitability. this relationship is supported by the increasing role of financial securities in modern banking systems, especially in the context of low interest rates and diversification of income sources. however, total investment (ti) has a negative and statistically significant effect on roa. this means that excessive or ineffective investment can lead to a decrease in bank profitability. although this finding contradicts some positive results proposed by athanasoglou et al., recent studies confirm this negative effect. for example, djalilov and piesse[11,12] found that investment-based growth in banks in developing countries often leads to high risk and low returns due to weak management and inefficient capital allocation. the liquidity ratio (liqr) has a strong negative relationship with roa. liquidity is usually seen as a risk-reducing factor, but excessive liquidity can often be a sign of risk aversion or failure to take advantage of profitable lending opportunities. the debate about this trade-off has also been raised in modern empirical research. other variables such as credit and leasing (cal), customer liabilities ratio (levr), and total funds with other banks (tfob) do not have a statistically significant impact on roa. these results indicate that the determinants of bank profitability are context-dependent. this is also the case in cross-country studies that have shown that institutional and regulatory systems significantly influence the relationship between profitability and levr. using a fixed effects model, unobserved differences that do not change over time (heterogeneity) were controlled for, which increased the reliability and accuracy of the analysis results. american journal of business management, economics and banking volume 39 august2025 p a g e | 13 www.americanjournal.org table 2. estimation using model 1 fixed effects explanatory var. coefficient standart error t-statistic p-value ca 2.12e-08 5.46e-09 3.88 0.000 cbf 3.92e-09 2.12e-09 1.85 0.066 tfob 3.11e-13 2.78e-13 1.12 0.267 s 2.50e-11 1.19e-11 2.10 0.037 ti -3.28e-10 1.23e-10 -2.67 0.008 cal -1.89e-10 5.24e-10 -0.36 0.718 levr -3.45e-09 9.31e-09 -0.37 0.711 liqr -.0115743 .0021071 -5.49 0.000 cons .0319849 .0065037 4.92 0.000 results and discussions on model 2 the results of the hausman test for model 2 are as follows: chi-square statistic: 11.47, degrees of freedom: 7, p-value: 0.0007. since the p-value is less than 0.05, we reject the null hypothesis. this means that there is a statistically significant relationship between the independent variables and the individual characteristics. as a result, the main assumptions of the re model are violated. therefore, the use of the fixed effects (fe) model is considered acceptable. this model controls for individual differences that do not change over time. this prevents the coefficients in the regressor from being overestimated. on the contrary, it would be a mistake to use the random effects model in this situation, because this model incorrectly assumes that unobserved individual characteristics are not associated with the independent variables. as a result, the re model leads to biased and inconsistent estimates. overall, the hausman test for the model gives strong statistical evidence in favor of the fixed effects model. since the p-value (0.0007) is well below the traditional 5% level, the use of the re model in this context is inappropriate. therefore, it is recommended to use the fe model when estimating model 2, which ensures that the results of the econometric analysis are more reliable and robust. table 3: hausman test for model 2 hausman test for model 2 test summary chi-sq. statistic chi-sq. d.f p-value cross-section random 11.47 7 0.0007 nim (net interest margin) analysis based on fixed effects model funds with other banks (tfob) and loans and leasing (cal) indicators are shown to be statistically significant predictors of nim. a positive and significant tfob coefficient indicates that banks are effectively investing funds held in other financial institutions or are making a profit through these assets. the strong and positive effect of loan and leasing activities (cal) is logical more loans lead to more interest income, which, naturally, contributes to an increase in the nim level. cash assets (ca), central bank funds (cbf), securities (s), total investments (ti), leverage ratio (levr) and liquidity ratio (liqr) are not statistically significant. however, their sign may be useful for further analysis. in particular, there is a large but insignificant negative coefficient on liqr. this suggests that excess liquidity may be reducing the nim level through the opportunity cost, a situation that has also been observed in studies of some developing countries. credit and leasing (cal): this result is consistent with the findings of several previous studies, american journal of business management, economics and banking volume 39 august2025 p a g e | 14 www.americanjournal.org including demirgüç-kunt & huizinga and maudos & fernández de guevara. they find that more lending increases nim, especially in conditions of high competition or high inflation. alhassan and brobbey, in their study of banks in sub-saharan africa, found that a diversified loan portfolio increases a bank’s interest margin. tran et al., in the case of banks in southeast asia, found that digital lending and extended leasing services significantly increased nim, especially for medium-sized banks. funds from other banks (tfob): although the positive and significant effect of this variable has been poorly documented in the academic literature, research on this topic has been increasing in recent years. for example, athanasoglou et al.[11] have shown that interbank market activity has a positive effect on bank profits. banks in bangladesh have found that they can achieve higher margins if they manage short-term interbank assets effectively. in developing countries, improving interbank markets have shown that banks can manage liquidity effectively and generate some income. liquidity ratio (liqr): although not statistically significant, its negative sign indicates that it may have a negative impact on bank profitability. this is consistent with the “liquidity-profitability tradeoff” theory noted in many studies. conclusion in general, the results of the analysis, consistent with the latest scientific literature, confirm the importance of the following factors for increasing bank profitability: maintaining an optimal liquidity balance, pursuing a prudent investment strategy, and diversifying income sources. the results of the fixed effects model are consistent with both the classical and contemporary literature. lending activity and interbank funds management are confirmed as the main drivers of nim. while other variables – liquidity, leverage and cash assets – are theoretically important, their impact is less in this sample. this may be due to changes in financial regulation or the impact of bank-specific strategies. references 1. decree of the president of the republic of uzbekistan dated may 12, 2020 no. pf-5992 “on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025”. https://lex.uz/docs/4811025 2. regulation "on the classification of asset quality in commercial banks and the procedure for the formation and use of reserves to cover potential losses on assets", approved by the resolution of the board of the central bank of the republic of uzbekistan no. 14/5 dated june 13, 2015 and state registered by the ministry of justice of the republic of uzbekistan no. 2696 on july 14, 2015. 3. синки дж.фи финансовый менеджмент в коммерческом банке и в индустрии финансовых услуг / москва :альп. бизнес букс, 2007. 1018 с. 4. лаврушин о.и. банковский менежмент. -м. кнорус, 2009. с. 308 5. питер с.роуз. банковский менеджмент. 6. bourke, p. (1989). concentration and other determinants of bank profitability in europe, north america and australia. journal of banking & finance, 13(1), 65–79. 7. molyneux, p., & thornton, j. (1992). determinants of european bank profitability: a note. journal of banking & finance, 16(6), 1173–1178. 8. dietrich, a., & wanzenried, g. (2014). the determinants of commercial banking profitability in https://lex.uz/docs/4811025 american journal of business management, economics and banking volume 39 august2025 p a g e | 15 www.americanjournal.org low-, middle-, and high-income countries. the quarterly review of economics and finance, 54(3), 337–354. 9. ahamed, m. m. (2017). asset quality, non-interest income, and bank profitability: evidence from indian banks. economic modelling, 63, 1–14. 10. hashem, d. (2021). central bank responses to covid-19 and bank profitability in the mena region. journal of economic studies, 48(6), 1221–1243. 11. athanasoglou, p. p., brissimis, s. n., & delis, m. d. (2008). bank-specific, industry-specific and macroeconomic determinants of bank profitability. journal of international financial markets, institutions and money, 18(2), 121–136. 12. djalilov, k., & piesse, j. (2016). determinants of bank profitability in transition countries: what matters most?. research in international business and finance, 38, 69–82. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 204 www.americanjournal.org author's approach to the concept “financing of joint stock companies through stocks” kakhramon chinkulov associate professor, phd. tashkent institute of finance e-mail: kahramon114@yahoo.com a b s t r a c t k e y w o r d s the purpose of the author is to define the theoretical and economic essence of "financing of joint-stock companies through stocks." in the author's opinion, first of all, it is impossible to talk about financial indicators that reflect his position, without specifying "financing of jointstock companies through stocks." based on the results of the study, the author's definition was formulated for the concept of "financing jointstock companies through stocks". the author provides a description of the financing of joint-stock companies, based on the strategic goals of jointstock companies and sources of funding. scientific conclusions on the topic were also made. stocks, joint-stock company (jsc), financing, ipo, issue, stock capital, stock market, corporate securities market. introduction: the aim of the research is to develop an author’s approach to the concept of “financing of joint-stock companies through stocks”. introduction in our research work on improving the financing of joint-stock companies through stocks, it is necessary to clarify a number of theoretical issues directly related to this topic, and ultimately develop our own definition. this step in the research process is very important. because, first of all, we need to clarify what we want to improve in our article, what are the keywords or phrases of the topic of our article, what aspects we should emphasize in our research and what is the approach of our author in this regard. as a result, the theoretical and economic basis of our research work has been laid. as you know, the more solid and clear the theoretical fundamental research work, the more justified are the conclusions and proposals made on the basis of the author's own vision. that is why, in our opinion, it is important to note first of all, connected with the improvement of financing of joint-stock companies through stocks. our purpose in this regard, which is of theoretical importance, is to define the theoretical and economic essence of "financing of joint-stock companies through stocks." in our opinion, first of all, it is impossible to talk about financial indicators that reflect its position, without specifying "financing of joint-stock companies through stocks." in our country, the current state of financing joint-stock american journal of business management, economics and banking volume 12 may, 2023 p a g e | 205 www.americanjournal.org companies through stocks remains difficult, and in the context of the strategic development of the economy, the improvement of financing joint-stock companies through stocks cannot be sufficiently scientifically and practically substantiated. research methodology in order to develop the author's approach to the concept of "financing of joint-stock companies through stocks" and scientific proposals, the article used such methods as generalization, grouping, systematic approach, analysis and synthesis, comparison, induction and deduction. literature review joint stock companies are the main participants in the stock market. joint stock companies are enterprises with a unique organizational and legal form, and in accordance with the current legislation of the republic of uzbekistan, a company can attract financial resources in order to expand, modernize, reconstruct and technical and technological re-equipment of its activities to attract investment, joint-stock companies (corporations) issue equity securities (ordinary stocks), as well as debt securities (mainly corporate bonds). as an alternative source of capital raising, equities occupy the most important place among the available securities due to their wide distribution and unique characteristics. funding a joint-stock company by issuing stocks has a number of advantages. according to the uzbek scientist i.l. butikov, who has extensively studied the stock market, “the advantages of financing a joint-stock company by issuing ordinary stocks for the issuer are as follows [1, p. 6]: 1. if the enterprise is in the form of a joint-stock company, it will be able to mobilize much larger financial resources. 2. lack of fixed financial payments. 3. capital stability. 4. the risk of loss for the stockholder is limited by the value of the stocks. 5. increasing the investment attractiveness of the company. 6. popularization. the practice of financing an enterprise through stocks is widespread throughout the world, especially in developed countries. according to economists i. mirzaev and g. tursunov, “joint stock companies tend to find financial resources by issuing stocks, rather than taking loans to expand their activities (in international practice, large companies such as samsung, lg, kia motors want to expand their activities, mainly through the issuance of stocks attract financial resources)» [2, p. 61]. in our opinion, the first source of financing for joint-stock companies is financing through the issuance of ordinary stocks. according to foreign economist eddie mclaney, “joint stock companies are financed in the following ways [3, p. 36]: 1) by issuing ordinary stocks; 2) by issuing preferred stocks; 3) through borrowing”. in the economic literature, the main purposes of issuing stocks are: to provide a new enterprise with initial capital for the organization of joint-stock companies and business activities; attraction of additional funds (capital increase) in the process of economic activity; american journal of business management, economics and banking volume 12 may, 2023 p a g e | 206 www.americanjournal.org acquisition of another company; to attract a strategic investor capable of ensuring effective management of the enterprise, restoring or strengthening its position, making significant changes to the capital structure and company management; maintaining and strengthening control over the jsc. for example, the main reasons for issuing stocks in the united states today are the following [4, p. 68]: financing the acquisition of other companies; decrease in the stock of borrowed capital in the total capital of the corporation; financing of capital investments. as a result of the study, it turns out that economists have given a separate definition to the concepts of "joint stock companies", "stocks", "financing", but no separate definition has been developed for "financing joint stock companies through stocks". analysis and results in our opinion, first of all, it should be noted that "financing of joint-stock companies through stocks" has a complex theoretical and economic structure. the impossibility of expressing this concept in one word shows that it has a complex theoretical and economic essence. that is, the theoretical and economic essence of "financing joint stock companies through stocks" consists of the meaning expressed by words and phrases taken separately and expressed in the following sequence: "joint stock companies", "stocks", "financing" "financing joint stock companies through stocks ". therefore, to determine the theoretical and economic essence of "financing joint-stock companies through stocks" it is necessary to determine the meaning of the words and phrases embedded in it. to do this, it is appropriate to refer to the relevant sources, in particular, to the annotated dictionary of the uzbek language, economic (financial) dictionaries, literature on corporate securities and legislation on joint-stock companies and the securities market. in the course of our study, devoted to clarifying the meaning of words and phrases referred to in the concept of "financing joint-stock companies through stocks", as a result of which we developed a comprehensive author's definition of this concept, the following was established. disclosed: in the law of the republic of uzbekistan "on joint-stock companies and protection of the rights of stockholders" a joint-stock company is defined as "a commercial organization, the authorized capital (authorized capital) of which is divided into a certain number of stocks, confirming the rights of stockholders in relation to the joint-stock company" [5.]. it should not be forgotten that the issues of "financing joint-stock companies through stocks" are studied on the basis of the subject of the study. the definition of "stock" is explained in the explanatory dictionary of the uzbek language as "stock (french action security) a security issued by a joint-stock company." also, according to the new version of the law of the republic of uzbekistan “on the stock market”, adopted on june 3, 2015: “a stock is the right of its owner to receive part of the profit of a joint-stock company in the form of dividends, participate in the management of a joint-stock company, and also become part of the property remaining after its liquidation, is an emissive security with the name of the owner written on it, confirming the right to a part of it, with an unspecified validity period” [6.]. and finally, although the definition of the term "financing" is not given in the dictionary, the concept of "finance", which is considered the core of this word, is explained as follows: "it is taken from the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 207 www.americanjournal.org arabic word and means money. 1. the totality of economic relations arising from the formation, accumulation, distribution and use of targeted funds, the system of formation, distribution, spending and use of funds. 2. money held by a person, family, community, institution, organization or state” [7, p. 611]. however, in our opinion, the essence of these words is not enough to reveal the theoretical and economic essence of "financing joint-stock companies through stocks." because the theoretical and economic essence of "financing joint-stock companies through stocks" cannot be derived from the direct addition of the meaning of the above words and phrases. to do this, it is necessary to understand the theoretical and economic meaning expressed by the words "joint stock companies" "financing of joint stock companies" "financing of joint stock companies through stocks". continuing our study, taking into account the above definitions, we turn to practice in addition to the theoretical literature on the financing of joint-stock companies through stocks. on the basis of all this, we have developed the described mechanism for the forms of financing of jscs through stocks, depending on the goals and sources of financing (see fig. 1). from the data in figure 1 it can be seen that the forms of financing of joint-stock companies through stocks include primary financing of joint-stock companies, financing through ipo, secondary financing from capitalized profits, additional financing based on closed subscription and financing through preferred stocks and securities convertible into stock. when mentioning the initial financing of a joint-stock company, financial relations related to the formation of the initial authorized capital of the company are provided. in this case, the source of funding is the funds of the founders. the main role of stocks in the investment process is clearly defined when creating a joint-stock company. as a result of the initial issue of stocks and their subsequent distribution among the founders, the authorized capital is formed, which is the basis for doing business. fig. 1. description of the forms of financing of jsc through stocks, depending on the goals and sources of funding [8, p.3]. financing of joint stock companies through shares objectives forms sources of initial funding jsc formation of the statutory fund jsc funds of primary, limited founders financing jsc through ipo additional financing due to new shareholders wide range of products shareholders financing by means of preferred shares and securities convertible into shares increase in the value of long-term assets of shareholders retained earnings of previous years additional funding by private subscription attracting additional resources and stakeholders funds of suppliers of goods, buyers, etc secondary financing from capitalized income raising financing without increasing the number of shareholders stakeholders funds of recipients with a fixed interest rate american journal of business management, economics and banking volume 12 may, 2023 p a g e | 208 www.americanjournal.org financing of joint-stock companies through ipo (initial public offering) is defined in the resolution of the cabinet of ministers of the republic of uzbekistan no. 268 dated 05.10.2017 “on organizing a public offering of stocks on the stock exchange”. according to this decision, an initial public offering (ipo) is a placement of stocks by a joint-stock company (the initiator of the ipo) on the stock exchange among an unlimited number of investors. if a joint-stock company wants or needs additional large financing from new stockholders, it uses financing through an ipo. in this case, the source of financing is the funds of the general public of stockholders. secondary financing of joint-stock companies at the expense of capitalized profit means financing of joint-stock companies by reinvesting net profit. the purpose of this is to direct part of the net profit to the joint-stock company through reinvestment, and not through consumption. as a result, the value of one stock increases. or, according to the legislation in force in our republic, additional stocks are issued to stockholders in proportion to their stocks. additional financing of joint-stock companies refers to relations associated with the issue and placement of additional stocks in order to increase the authorized capital or raise funds. the purpose of additional financing of joint-stock companies on the basis of a closed subscription is to attract additional resources and interested parties, including suppliers, buyers, etc. funds will be additionally attracted on the basis of a closed subscription. when financing joint-stock companies at the expense of preferred stocks and securities convertible into stocks, financing is carried out without increasing the number of stockholders-participants. in this case, the source of financing is the funds of recipients of fixed interest. conclusions based on the above analysis, we have drawn the following conclusions: 1. we have formulated the author's definition of " financing of joint-stock companies through stocks" as follows: financing of joint-stock companies by stocks pre-financing of joint stock companies, financing through ipo, secondary financing from capitalized income, additional financing based on a closed subscription, and also, by providing financing through preferred stocks and securities convertible into stocks. 2. our description of corporate finance, as shown in figure 1, is based on the company's strategic goals and funding sources. forming this image information, we not only defined the concept of "financing of joint-stock companies through stocks", but also expressed the description of this financing. 3. undoubtedly, the widespread attraction of investments through equity financing contributes to the development of the stock market as an alternative source of allocation of free resources of enterprises, financial institutions and the population. at the same time, it represents promising directions for the development of the economy of uzbekistan. bibliography: 1. butikov i.l. advantages and disadvantages of financing a joint-stock company by issuing securities. // enterprise management, 2012—no. 10 (64)—p.6. 2. i. mirzaev., g. tursunov. effects of cooperation between the uzbek and korean stock exchanges. // market, money and credit, 2015—no. 9—p.61. 3. eddie mclaney. business finance. theory and practice. publishing house "infra-m". moscow, 2008. p.36. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 209 www.americanjournal.org 4. bocharov v.v., leontiev v.e. corporate finance / st. petersburg: peter, 2004. -p.68. 5. law of the republic of uzbekistan dated may 6, 2014 no. lru-370 "on joint stock companies and protection of stockholders' rights", article 3. 6. law of the republic of uzbekistan "on the securities market". narodnoye slovo, june 4, 2015, article 3. 7. explanatory dictionary of the uzbek language: more than 80,000 words and phrases. . j. ii. e m / editorial board: t. mirzaev (head) and others; institute of language and literature of the academy of sciences of uzbekistan. t .: "national encyclopedia of uzbekistan" gniz, 2006. p.611. 8. chinkulov k. functions of joint stock companies in the economy and improvement of their financing //journal of innovations in economy. – 2021. – т. 4. – №. 8. – с. 26-34. american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 126 www.americanjournal.org strategic analysis of e-commerce in uzbekistan siddikova marguba senior teacher, university of world economy and diplomacy a b s t r a c t k e y w o r d s this thesis is devoted to defining and solving problems of the development of electronic commerce in uzbekistan. we analysed the main web-sites in uzbekistan online market. research findings have been identified by using pest method. information and communication technology, internet, e-commerce within the framework of the concept of e-commerce development in the republic of uzbekistan, it is planned to conduct a set of measures to stimulate e-commerce in uzbekistan, for which all the necessary conditions have been created. the key factor is the growth of internet users. currently, the number of internet users in uzbekistan has exceeded 27.2 million. this was reported by the press service of the ministry for the development of information technologies and communications. [1]. note that the population of uzbekistan is 34.7 million people [2]. it follows that large number of the population of uzbekistan are potential participants in electronic transactions. it can be noted that uzbekistan has established a stable base for the development of e-commerce. guided by a step-by-step method, e-commerce is developing at a steady pace in our country. the concept adopted in 2015 already gives its results, namely the following measures have been taken: ➢ a separate section "e-commerce" was created in the national information retrieval system www.uz for the registration of online stores and e-commerce resources. to date, 65 websites have been registered in the section, among them online stores, trading floors, message boards, etc. ➢ in recent years, a number of government resolutions have been adopted in country aimed at the introduction and development of e-commerce is being formed: the laws “on e-commerce” (2004, 2015), “on information” (2003), “on electronic digital signature” (2003) and “on electronic document management” (2004). ➢ the study of international experience in the field of improving state regulation in postal communication in the field of electronic commerce, is being conducted. a comprehensive analysis of all existing and really working online stores is impossible. but some participants in the market deserve attention: table 1. main web-sites in uzbekistan online market name of e-markets type of business payment system www.korzinka.uz www.lebazar.uz online shopping website of hypermarket “korzinka” (b2c) uzcard, click.uz (mobile banking system) http://www.korzinka.uz/ http://www.lebazar.uz/ american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 127 www.americanjournal.org www.arba.uz online shopping website (b2b, b2c) uzcard, click.uz (mobile banking system) www.mediapark.uz online store specializing in the sale of home appliances and electronics in tashkent. (b2c) uzcard, click.uz (mobile banking system) www.mbc.uz company activity is focused to building of unique residential complexes notable for innovativeness, smart-approach and high quality. (b2c) uzcard, click.uz (mobile banking system), cash. www.bringo.uz service orders and delivery of food from cafes and restaurants, as well as everyday food in tashkent. order delivery to your home or office. (b2b, b2c) uzcard, click.uz (mobile banking system), cash. 1. www.korzinka.uz. in 1996 was established anglesey food company, and as one of the pioneers, ventured into the large-format supermarket chain in the retail market of the republic of uzbekistan. originally, the stores operated under the anglesey food brand as “convenience stores”. soon after in 2001, the decision to re-brand the company was made. this gave an impetus for the retail supermarket chain development under the brand korzinka.uz. indeed, it’s no exaggeration to say that korzinka.uz supermarket chain is a national brand. korzinka.uz and www.lebazar.uz stores constantly serve tens of thousands of customers daily. the consumer confidence is based on the constant work on improvement of the quality of service, attractive pricing policy and the bespoke loyalty program. 2.www.arba.uz first, the online store had its own warehouse stuffed with all sorts of things, and the founders tried as best they could: the buyer wants arba.uz buys. and he buys not several models, but immediately the entire line. the case ended with the fact that all the working money went to the goods, most of which could be in the warehouse for a long time. food, household chemicals, goods for beauty and health a total of more than 15 000 items in their own warehouse. in this format, the project worked for about two years, but in 2017 it was decided to change the concept. now arba.uz is an online store as a service providing services. the warehouse is closed, but now korzinka.uz, texnostatus (home appliances and electronics), togora.uz (ready-to-eat food, semi-finished products), fiori flower boutique (flowers) and others are on the list of partners initially, it was assumed that the target audience for the new project would be specialists with a nonstandard working schedule and busy young people. and after six months of work, arba.uz employees discovered a completely different segment of customers an unexpected, but most demanding. they were young mothers. "in every second order there were diapers, and this allowed us to do a new analysis and determine the largest audience of customers. moreover, in process of receipt of orders young mothers asked to add milk mixtures, hygiene products for toddlers and much more. then arba.uz realized that this segment is very large. 3.www.mbc.uz online store of murad buildings company. murad buildings is of the leading and fast growing development company with 15-years' experience at real estate market of uzbekistan. company activity is focused to building of unique residential complexes notable for innovativeness, smart-approach and high quality. http://www.arba.uz/ http://www.mediapark.uz/ http://www.mbc.uz/ http://www.bringo.uz/ http://www.korzinka.uz/ http://www.lebazar.uz/ http://www.arba.uz/ http://www.mbc.uz/ american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 128 www.americanjournal.org murad buildings team specifically attends to both construction issues and relations with the clients, ensuring the individual approach and detailed advice during choice of apartment and business facilities. company`s primary objective is not only the high quality construction and development of social infrastructure, but also timely occupation and post-sales maintenance. 4.www.mediapark.uz an online store specializing in the sale of home appliances and electronics in tashkent. the assortment of online store consists of products from the world's leading brands such as lg, samsung, artel, avalon, philips, polaris, panasonic, sony, electrolux and many others. 5.www.bringo.uz is a service of orders and delivery, through which consumers arrange delivery of food from cafes and restaurants. bingo’s mission is to improve the lifestyle of consumers by providing better and more convenient access to quality food. table 2. pest analysis of internal environment in uzbekistan e-commerce political factors economic factors political stability; emphasis of developing the uzbekistan ecommerce industry government strongly support market economy and privet enterprise; state incentives and programs to support the development of ict technologies; development of the regulatory framework, which will become the main regulator of electronic data, financial transactions; protection from the state with a possible cyberattack on personal data; state reforms in the general education system. young population ratio and large consumers; average income category: middle income; high costs of access to telecommunications infrastructure -the structure of pricing and tariffs; commercial infrastructure, promotion of the banking sector; payment systems; innovative business models. social factors technological factors middle level of computer literacy of the population; enough providing the population with computers, tablets, mobile phones, etc. security threat in e-commerce. computerization of government and private sector business; increasing use of social media networks; low but developing internet-providers. compiled by the author based on the analysis we are able to draw some conclusions. very stable political conditions and rapid economic growth has made the e-commerce industry in uzbekistan attractive to investors, government strongly support market economy and private enterprise. the uzbekistan e-commerce industry analysis (porter’s “five forces” model). bargaining power of suppliers (high). hypermarkets and entrepreneurs are the main suppliers in the uzbekistan e-commerce market. they need a website to be created for electronic sale. but some of them also created their own websites, for example, korzinka.uz is a big hypermarket set in uzbekistan. this company has its own e-shops and also supply for many other e-commerce websites. there are http://www.mediapark.uz/ http://www.bringo.uz/ american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 129 www.americanjournal.org many small and medium entrepreneurs are also suppliers for e-commerce websites, but they also can use social media create some groups and sale own products. for example, many companies have account pages in facebook, instagram and telegram. bargaining power of buyers (low). in uzbekistan e-commerce market not too much options for eshopping. buyers can use international e-commerce websites, but not for all needs they can choose it, import products take time and also costly. so, most of the time consumers use uzbek electronic markets. threat of new entrants (high). since the e-commerce market has no entry barriers from the government or technological perspective, it is very attractive for other firms to enter into this market. also, the nature of business itself does not have any cost, so it is hard to achieve or realize the economies of scale. as we know, the technology is improving every second or even minute, which means people can create a website in five minutes. therefore, the threat of new entrants is very high. threat of substitutes (low). there is no technology that can substitute the internet so far in the market. even, analog signal that use to send the television signal or radio signal are not the main threat. the main substitute that exists is the brick and motor store, which they change or move their place to be on the internet. therefore, the e-commerce industry has low threat of substitutions. rivalry among firms (low). the rivalry intensity in uzbekistan is very low, according to our research as we can see that there are only few firms (www.lebazar.uz www.arba.uz www.mediapark.uz etc.) that are generating revenues and with different market segmentation, there are many opportunities due to the few competitors in the market. the amount of the firms is still insufficient when we compare with the population or the internet users in uzbekistan. as we can see from the porter’s five forces analysis, the uzbekistan e-commerce industry is still under the competitive level, and the profit margins for each firm are relatively high. e-commerce should increase the efficiency of uzbekistan’s economy by making products higher quality and customer service more efficient. the uzbekistan economy will gain many advantages from e-commerce that will totally change the way that businesses operate. e-commerce is rapidly changing the foundation of uzbekistan government policies and improving their online communication strategies for expanding their economy. references 1. https://www.uzdaily.uz/en/post/70654. 10/01/2022 2. http://countrymeters.info/ru/uzbekistan. 2022 3. www.korzinka.uz 4. www.arba.uz 5. www.mbc.uz 6. www.mediapark.uz 7. www.bringo.uz http://www.korzinka.uz/ http://www.arba.uz/ http://www.mediapark.uz/ https://www.uzdaily.uz/en/post/70654 http://countrymeters.info/ru/uzbekistan http://www.korzinka.uz/ http://www.arba.uz/ http://www.mbc.uz/ http://www.mediapark.uz/ http://www.bringo.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 77 www.americanjournal.org functional empowerment factors and their impact on enhancing the core capabilities of the organization / a field study at al-mustansiriya center for arab and international studies / al-mustansiriya university lecturer mustafa saadi talib al-mustansiriya center for arabic and international studies / presidency of al-mustansiriya university / iraq mustafasaadi1984@gmail.com a b s t r a c t k e y w o r d s the aim of the research is to identify the functional empowerment factors and their impact on enhancing the core capabilities within the research community. in this research, the descriptive analytical method was used. the research community consists of a group of teachers and employees of the al-mustansiriya center for arab and international studies at al-mustansiriya university, who number (38) affiliates. the questionnaire forms were distributed to all members of the sample. the research questionnaire was designed based on previous studies related to the subject of the research. statistical means the researcher concluded that there is an effect of applying the functional empowerment factors on enhancing the core capabilities in the organization in the field of research. functional empowerment factors, core capabilities عوامل التمكين الوظيفي وتأثيرها في تعزيز المقدرات الجوهرية للمنظمة / دراسة استطالعية في مركز العراق -تنصرية المستنصرية للدراسات العربية والدولية / الجامعة المس المدرس مصطفى سعدي طالب مركز المستنصرية للدراسات العربية والدولية / رئاسة الجامعة المستنصرية / العراق mustafasaadi1984@gmail.com المستخلص هدف البحث إلى التعرف على عوامل التمكين الوظيفي واثرها في تعزيز المقدرات الجوهرية داخل مجتمع البحث. استخدم في هذا البحث المنهج الوصفي التحليلي . ويتكون مجتمع البحث من مجموعة من تدريسيي ( 38والبالغ عددهم ) وموظفي مركز المستنصرية للدراسات العربية والدولية في الجامعة المستنصرية ات االستبانة على كل أفراد العينة , وتم تصميم استبانة البحث استنادا إلى الدراسات منتسب وتم توزيع استمار american journal of business management, economics and banking volume 14 july, 2023 p a g e | 78 www.americanjournal.org السابقة ذات العالقة بموضوع البحث وتم استخدام المسح الشامل لعينة البحث وباستخدام الوسائل اإلحصائية عوامل التمكين الوظيفي على تعزيز المقدرات الجوهرية في المنظمة توصل الباحث إلى وجود تأثير لتطبيق مجال البحث وخلص البحث على اعتبار أن عوامل التمكين الوظيفي من المتغيرات المهمة في في تعزيز المقدرات الجوهرية داخل المنظمة المبحوثة . الجوهرية ((المصطلحات األساسية )) عوامل التمكين الوظيفي ، المقدرات . المبحث األول منهجية البحـث المقدمة : مشكلة البحث : – أوال يـشهد هذه مواكبة مـشكلة تواجه المؤـسـاات واـصبح المجاالت، مختلف على ـسييعة وتطورات تحوالت العالم التطوراتو التغييات ــتخدا كيفية و اسـ ــالي بتطبيق المنظمات اهتما ازداد وقد والمتطورة، الحديثة العمل اسـ لمواكـبةالـحديـثة المـفاهيم ــالـي وتطويي التطورات ـهذه ــتو االرتـقا يحقق بـما العـمل اســ الـعاملي ادا بماــ ويزداد ككل، المنظمة ادا وماــتو اتاالدار اهتما ابداع كل في االســا حجي تشــكل التي البشــيية بالموارد توجـيهعلى والعـمل المنظـمة في وتطويي مع المنظـمة اـهدا ربط خالل م ومـهاراتهم ـقدراتهم وبـنا االفياد ــية اهدافهم ــخ ـ الشـ ــ ه م مناخ تنظيمي او بيئة وايجاد ــاركة دعم شـ ــعور وخلق لالفياد الفاعلة المشـ الشـ همرضــاوتحقيق لديهم بالماــؤولية الجماعي والعمل التعاون روح بث على للمنظمة والعمل ووالئهم العمل ع ــو ـهذا علـيه ـجا و. فيـما بينهم ــلط ال ــ علىالبـحث لياــ بعض ـهذه المـفاهيمـهذه عبي اإلـجاـبة على الـحديـثة التااؤالت التالية : ـهو .1 ـمـف ـهو مــا العالقة بينهما .وما طبيعة الجوهيية الوظيفي والمقدرات التمكي ل .2 د ـه ا يوـج هـن في مجتمع البحث. الجوهيية المقدرات تعزيزعلى الوظيفي التمكي عوامللت ثيي عالقة : أهمية البحث –ثا ياً تبيز البحثهذا أهمية ) . الجوهيية الوظيفي والمقدرات التمكي عوامل ( المبحوثي المتغييي أهمية م تلخيص أهمية هذا يمك و .ة المعاصــي األعمال بيئة تجابه التي ال ــعوبات لمواجهة مهمي متغييي بوصــفهما البحث بالنقاط التالية / أهمية موـضوع .1 .ككل المنظمة العاملي وادا تحاي أدا فيكبيي دوروما له م الوظيفي التمكي يــة .2 ـم زـيز أـه ـع ـت . تعزيز ميزاتها التنافايةالمنظمة و جاحفي بارز اثيم وما له الجوهيية المقدرات اـلـمياـكز أـهـميــة .3 تقديم م دور بارز في الما له في العالم ب ــــورة عامة وفي العياو ب ــــورة خاصــــة التابعة للجامعاتالبحثية . الدراسات والحلول للمشاكل التي تواجه الجامعة والمجتمع إمكا ية اسـتفادة .4 ــتقبلية أو تعديل الخطط الحالية مجال البحث المنظمةقيادات ــع الخطط الماـ زيزلتعم تائج هذا البحث في وضـ . لديهاال عف معالجة قاط قاط القوة و american journal of business management, economics and banking volume 14 july, 2023 p a g e | 79 www.americanjournal.org أهدا البحث : –ثالثا ً تتلخص أهدا هذا البحث بما ي تي : عـلـى .1 الـتـعـي .الجوهيية المقدراتو الوظيفي التمكي عواملومفهو قيــا واختبــار .2 . لغيض العمل على تعزيز ارتباط المتغييات ذات األثي اإليجابي الت ثيي بي متغييات البحث عالقة أبعاد تقوية خالل من مجتمع البحث في( الجوهرية المقدرات ) التابع البعد تحساااااين إمكاانية مدى بياان .3 . ( الوظيفي التمكي عوامل ) المستقل المتغير فيضيات البحث : رابعاً / : اآلتيةينطلق البحث الحالي في اختبار صحة الفيضيات الفيضية اليئياية : للمنظمة الجوهيية المقدرات تعزيز فيمجتمعي الوظيفي التمكي عواملل إح ـائيةيوجد ت ثيي معنوي ذو داللة . الفيضيات الفيعية : تــ ثــيــي .1 يــوجــد . الجوهيية المقدرات تعزيزفي المعلوماتمشاركة لعامل إح ائيةمعنوي ذو داللة تــ ثــيــي .2 يــوجــد .الجوهيية المقدرات تعزيزفي فيو العمللعامل إح ائيةمعنوي ذو داللة تــ ثــيــي .3 يــوجــد .الجوهيية المقدرات تعزيزفي واالستقاللية لعامل الحييةمعنوي ذو داللة . الجوهرية المقدرات تعزيز فيالتدريب والتطوير لعامل داللة ذو معنوي تأثير يوجد .4 . الجوهرية المقدرات تعزيز في التحفيز لعامل داللة ذو معنوي تأثير يوجد .5 : الفيضي البحث خامااً / مخطط بعد االطالع على الدراـسات والبحو الـاابقة اعتمد الباحث على األبعاد التالية م اجل الح ـول على النتائج تشمل : والتيالتي ستجي على تااؤالت البحث المتغيي الماتقل ــم : ــاركة المعلوماتوهي : ) الوظيفي التمكي عوامل يت ـ التدري , واالساااتقاللية الحرية, فيو العمل, مشـ ( . التحفيز, والتطويي ابع : المتغيي الـت .( رأ المال البشيي, اليؤيا المشتيكة , التنظيمية الموارد : ) وهي الجوهيية المقدراتابعاد يت م american journal of business management, economics and banking volume 14 july, 2023 p a g e | 80 www.americanjournal.org المتغيي الماتقل المتغيي التابع البحث مخطط( 1) شكل الباحث أعداد م المبحث الثا ي الجا النظيي للبحث التمكي أوال / : الوظيفي مــــفــــهــــو .1 : التمكي الوظيفي جا ) التمكي مفهو empowerment ) الحديث االداري الفكي في النموذج لغيض مغادرة لقيادةل التقليدي كان الذيو واليقابة المباشـية التوجيه على ييكز قيادةاسـلو الى ؤم ي لزيادة والتشـاور بالمشـاركة فادةسـتاال ارا م اجيا يتطل بدوره وهذا العاملي ، االفياد 182: 2011وآخيون، المعا ي( العمل ب دوار جذري تغييي ( . ويعي التمكي الوظيفي على ا ه : عوامل التمكي الوظيفي المقدرات الجوهيية الموارد التنظيمية اليؤيا المشتيكة رأ المال البشيي وماتلمشاركة المع فيو العمل التحفيز التدري والتطويي الحيية واالستقاللية american journal of business management, economics and banking volume 14 july, 2023 p a g e | 81 www.americanjournal.org عااااااااارفااااااااا (stevenson , 2005) يناتا مـاؤولية العاملي األفياد تخويل أ هعلى لطةمنحهم و لتحـا تغيييات الجيا الـا ( .stevenson , 2005 : 399) للعاملي مجهزة دافعة بقوة إ جازهاو أـسناد عمليةوه كل باسـتخدا مهل الاـماح مع م،هب عمال ةلال ـ ذات ةالوظيفي مهرادوا للعاملي باالضـافة الى راالقي صـنع مةهم ( .gul, et al.2012:298) الوظائف كللت قيمة خلق أجل م والمبتكية اإلبداعية االفكار عـــنـــه وعـــبـــي (griffin & morhead) وحل القيارات واتخاذ بعملهم الخاصــــة األهدا وضــــعب العاملي ه يعني قيا ب .( griffin & morhead, 2014: 134) واستقالليتهم ماؤوليتهم ارطإ ضم المشاكل التمكي أهمية .2 : الوظيفي : (42: 2017كواشي , , )عدا م خالل االتي الوظيفي بالنابة للمنظمات التمكي تبيز اهمية ــ -أ ــذي مالال ته درا .الم م عدد باقل ةمظلمنل الوظيفي عــد تـمـكــي ـي اـل ا اساسي اا حاومفت اا مهم الا ماعالوظيفي ة .مظالمن لداخ االبداع ةلتنمي ا التمكي همااــي -ت ا الً ماع يتعبي كو ه ةجيااال ت ةدازي يف . ات العاملي وقدراتهمبلياق يتطوي يف رئياا عــد تـمـكــي ـي اـل اة .فامن ثياك قبلتام هاتجاب تامظالمن يتغييحديثة ل قةيطيالوظيفي فوائد التمكي .3 :الوظيفي يمك الوظيفي التمكي فوائد اهم تحديد ) باالتي mullius,2007 ) ( schermerhorn,2000 )عبد ( الحاي , 2012 :85: ) ــييع -أ عملية تاـ . الوق تقليص خالل م تاالقيار اتخاذ نــان اـطالو ـع اـل . واالبتكار االبداعية للقابليات american journal of business management, economics and banking volume 14 july, 2023 p a g e | 82 www.americanjournal.org ــا تحقيق -ت اليضـ .اكبي وظيفي االتزتحقيق ماتو و والدافعية الوظيفي ــدة ــاعــ ماــــــ .اعمالهم ا جازاكبي ع ت ور على الح ول في العاملي ــ تخفيف -ج الع على قبلهم م المباشـــي اواالشـــي جعةاالمي وتقليل العليا االدارية الماـــتويات في االمدرو اليؤوســـا ع . الميؤوسي ــاهمة -ح في الماـ . فاهم ب تهمثق وزيادة عنهم العمل ضغوط وتخفيف العاملي حاجات اشباع ــات .4 ــوقـ ــعـ مـ :الوظيفي التمكي ( أشــار ( 29: 2015 معياج، تمكي تطبيق على قدرتها م تحدد قد التي المعوقات بعض تواجه قد المنظمات أن : (40: 2019)الحيالي , المعوقات تلك وم العاملي ــوقـــات -أ ــعـ ــمـ الـ ياـسات واال ظمة التنظيمي وهيكلها بالمنظمة الميتبطة المعوقات تلك هي :واالدارية التنظيمية بها المعمول والـا هجامنال لتطبيق الالزمة التنظيمية الموارد يتوف عد ومنها الاــياســاتتلك تطبيق ع ينتج وما المنظمة تلك في البييوقياطيةتفشــي و للمنظمة التنظيمي الهيكل ورتابة الشــديدة والميكزية التنظيمية الثقافة وجمود الميســومة االت ـال ظا ضـعفكذلك و الموظفي عاتق على الملقاة العمل عبا أ وكثية االدارية الاـياسـات وتخلف الاـلبية . للعاملي المناس الوق في الالزمة المعلومات اتاحة عد وبالتالي المنظمة داخل ــوقـــات ــعـ ــمـ الـ بـاب أما التنظيمية، المـاتويات جميع في والعاملي البـشيي بالمورد هذا النوع م المعوقات يتبطيو : البـشيية بالفيد تتعلق ومجتمعية شـخ ـية ألسـبا أو ت هيلها في ال ـعف أو ةالبشـيي رداالمو تعداد في الحاصـل النقص المدرا وخو ةالمـاؤولي تحمل م العاملي وخو العاملي المدرا بعض قبل م التغيي مقاومة ومنها العامل ليس جامدا الفيد بقا أي تطويي،ال عد الى بدوره يؤدي الذي التدري ضــعف أن كما الوظيفية، مياكزهم على تعداد لديه الطاقات يويفج ييالتغي على يـشجع الذي التحويلي القائد لخ ـائص المدرا افتقاد كذلك ، تطوييلل االـس ــيه , وي ــا الى ذلك لد االبداعية النجاح على وتف ــيله الفيدي جاحهم تعزيز على العاملي تيكيز ميؤوس . الوظيفي التمكي سياسة تطبيق جاح في االسا يعد الذي الجماعي التمكين ابعاااد .5 : الوظيفي م خالل االطالع على الدراســـات الاـــابقة المتعلقة بالتمكي الوظيفي , تم اختيار االبعاد التالية للتمكي الوظيفي هي :هذه االبعاد في هذه الدراسة و مشـــــــــاركـــــة (1 : تعد المعلومات المادة االســــا التخاذ القيارات االســــتياتيجية والتشــــغيلية , ف ــــال ع ان اتاحة المعلومات المعلومة م ـش ه أن يعزز االلتزا الذاتي لد العاملي ع طييق ـشعورهم الثقة , حيث ا ه ال يوجد ـشج يجعل ـصة بتلك المنظمة مما ال يعيفه االـشخا العاملون يثقون بادارة منظماتهم افـ ل م مـشاركتهم بالمعلومات الخا american journal of business management, economics and banking volume 14 july, 2023 p a g e | 83 www.americanjournal.org د ( .wilkinson, 1998: 44)االخيون م ـخارج المنظـمة ويق ـــــد بمشـــــارـكة المعلوـمات اـتاحتـها حـيث تـع وال ســيما في الماــتويات الد يا ز ويمك تعييف المشــاركة بالمعلومة م العوامل اليئياــي في التمكي الوظيفي ــ ها ان تزيد م قدرتهم على ادا االعمال ــاركة المعلومات على ا ها تزويد العاملي بالمعلومات التي م شـ مشـ ( . 78: 2016فيحان , العاميي , ال المكلفي بها ) 2) : عـمــل اـل فـيو بتفاعل والعمل ي لالعام م محددة مجموعة قبل م كافية تاوخبي تاارهم إمتال " افيو العمل على ا ه تعي 2013 ، مهبودر( مهتاماـؤولي طاو ضـم تقع والتي منهم وبةلالمط دا هاأل تحقيق لغيض البعض مهبع ـ مع والويعم االخي بعضال يكمل مهبعـ ب ن الـشعور كواليمت أن يج األعمال مهإلي المفوـضةالعاملي أن كما ( .10: ً األفكار المنظمة ت خذ وأن العمل، م ـاع ةهومواج تالمشـكال حل ألجل جماعي وبشـكل واحد طاو ضـم معا اإلدارة بي المتبادلة الثقة م عالي مـاتو ليتط ذلك كلأن و, اهوتحتيم بجديةم قبل فيو العمل المطيوحة ي ـ و ةلالمحتم المخاطيو المشـاكل ةهلمواج لتلك الفيو داعم قيادي وجود ىلعاي ـا ا ذلك ويعتمد ، والموظف عالية بثقة تمتعت ةإداري اتراقي أتخاذو ةالمتبادل ادهاال تحقيق إلى تـاعى التي المنظمة حةلمـ في بالتالي ذلك (.276: 2019( )الكيبولي, 64: 2010)راضي, و لالمط الماتو وضم ــة (3 ــييـــ ــحـــ الـــ ( الى ان الحيية تعد م العوامل المهمة في 2002الملو , ( و ) 2004يشـــيي كل م ) الذه , : واالســـتقاللية تحقيق التمكي الوظيفي للعاملي كو ها تت ـم من االشـخا العاملي سـعة الت ـي في النشـاطات الخاصـة ــم خـيارات ــو ـها , وـقد تكون ـهذه الحيـية روتينـية عـندـما يؤودي الـعاملون مـها مـحددة ضــ ـبالمـها التي يـمارســ ــخص اليـجاد مـتاـحة او ـقد تكون ـهذه الح يـية خالـقة وريي روتينـية وـهذا يعتـمد ـباـلدرـجة االســــا على ـقدرة الشــ ــود ـبالحيـية في التمكي ا ـها اختـيار االفياد الـبداـئل بـما يعبي ع ـقدرـته على االـبداع و خلق الحلول وأن المق ــ بي الدا العمل وهذا يعني اختيار العملية وليس بال ـيورة اختي لو المناـس يلة واالـس ار االهدا والغايات , للوـس ــيي )الزيادات , ــتقاللية فيشـ ــبة لالسـ ــاتهم 2008اما بالناـ ــياسـ ( الى ا ها تعني ان لكل االفياد الحق في تقييي سـ ــة وما يتعلق بها ولديهم الحق في االختيار الحي وفقا لذلك ــا , ) الخاص . كذلك (43: 2016الدليمي , عبد اليض بمعنى العمل متابعة في المـشيفي دور تقليل أو الغا تعني االـستقاللية أن إلى ( wilkinson, 1998, 44) ـشارا تمكي ال في مهما عامال الت ـي حيية تعد إذ , القيارات تخاذال أكبي صـالحيات وإعطائهم العاملي تمكي اخي الوظيفي . الـــــتـــــدريـــــ (4 لغيض ودهالج جميع تكثيفم خالل اإلدارة ا مهـما م اـهدا دـفـه يعتبي ـتدرـي وتطويي الـعاملي والتطويي : ــب التي والمعيـفة وـبةلالمط وـماتلـبالمع الـعاملي تزوـيد تـلك تنمـيةو األعـمال دـية ـت في ارةـهوالم الخبية مهتكاــ ــتقب مهكـفا ت زـيادة ألـجل تاوالخبي والمـعار تاارـهالم أن كـما( . 240: 2005 يتي،هال ( والـحالـية ـيةلالماــ اذا لأف ـ الموظف أدا يكون وبالتالي الوظيفي مهوكلـس مـاتو ورفع العاملي أدا تحـاي في مهايـا ي رالتد ويمك تعييف التدري والتطويي على ( .jehanzeb,& bashir,2013:14) و لالمط بالـشكل هتدريب تكثيف تم ــخيـها المنظـمة والتي اـ ه تـلك االمـكاـ ات اـلذاتـية والمنظمـية التي ــا الـعاملي في تاــ مزـيداا م ـهاتـهد الى اكتاــ ــاعدهم في ادا مهامهم 78: 2016وجه ) ال فيحان , العاميي, اتمعلى الوظيفية المهارات والقدرات التي تاـ .) 5) : الــتــحــفــيــز داخل م قو ابعة وهي االفياد ، قبل م ذاتية بدافعية االعمال وادا ا جاز حو االـستعداد ز او الدافع هوالتحفي ( mc shane, glinow,2207طوعي ) ارادي ســلو وهو والمثابية العمل حو بشــدة توجيهه في تؤثي الفيد american journal of business management, economics and banking volume 14 july, 2023 p a g e | 84 www.americanjournal.org اإلداري بالتنظيم مهالحاق و األشـخا جذ في ماهتاـ الجيدة الحوافز أ ظمة إن( . 84: 2012الحاـي , )عبد ــباع ــت كذلكهم , حاجات واشـ ــتمي تعزيز في ماهاـ العاملي بي التنافس روح إثارةو الوظيفية البيئة في رااألسـ م وييفع واليـضا بالثقة يـشعيون بحيث الجيد المناخ وفيتو األبداع قلوخ األدا لتطويي أكبي دهج بذلوتدفعهم ل ــ مهومثابيت للمنظمة مهوالئ ويحفز المعنوية مهروح المعا ي( يةلوفاع بكفا ة دا هاأل تحقيق ىلع مهوحيصـ ولة،هبا يمن والللعاملي اا حافز البعض ظي ةهوج م بحد ذاته التمكي ويعد ( . 241: 2009 ارشيده، واخو ع هتلوماــائ الماــؤولية بتحمل وكذلك والفي والفوائد ديداتهوالت المخاطيب الموظف مشــاركة يشــمل هأل دا هاأل تحقيق حو الموظف دافع زيادة إلى يؤدي ذلك ف ن باألدا العائد أرتبط ما إذا وخاصـة ةلالمتح ـ النتائج ــات ــاي ــةلل والغ ــب خالل م منظم ــاســ ــة مهمك ــة أو المعنوي ــادي ــوربط الم ــاح مع اه ــة ج ــاــــ -al) المؤســ rousan,2014:125 . ) : المقدرات الجوهييةثا ياً / مــــفــــهــــو .1 : المقدرات الجوهييةوتعييف تحديد عد ي توجد التي الموـضوعات م الجوهيية المقدرات مفهو اتباين اواـضح وباليرم ، بي الكت ا والباحثي ذا االختال م ـه اي و التـب احثي في ات الـب د في اتجـاـه درات مفهو تحـدـي ة، المـق هؤال جميع أن إال الجوهيـي تلكل أن وهو فكيي توجه في الباحثي يشــــتيكون والنمو البقا على المنظمة تاــــاعد حقيقية قيمة المقدرات تاــتطيعو وأشــار كل م ) تها .ااســتياتيجي وتنفيذ أهدافها تحقيق خاللها م prahald & hamelالى أهمية ) خبياتها تطويي في المنظمة إمكا ية ع ف ــال الجوهيية، المقدرات لمفهو ال ــييحة اإلشــارات على التيكيز مهاراتهاو ــم تدخل والتي الطويل المد على ــاط ضـ تطوييالمنظمة في شـ لتحقيق أعمالها و ماذج عملياتها ( . 297: 2015 وآخيون، كاظم( الم افة القيمة كاالتي : لمقدرات الجوهيية اوتعي تاااالاااا هااااي أفضاال بشااكل التنافس على القدرة واكتساااب االداء في التفوق على المنظمة قدرة فيايجاباً تؤثر التي القابليات (johnson & scholes, 1997: 144 ). ــك ــلــ تــ ــي هــ المنظـماتبقـية على ـما منظـمة بـها تمـتاز التي م وعـها الفيـيدة والـقدرات المـهاراتو المواـه م مجموـعةال .( heizer & render,2011:75) لها المنافاة ــدرات ــقــ ــمــ الــ منتـجات المتنوعة لتـقديم والموارد والمعيفة التكنولوجـياو تتـكامل فـيه العملـيات تقني إداري أو ـظا هي الجوهيية .( macmillan & tampoe,2000:120وفييدة ) دائمة تنافاية ميزة المنظمة تمن أن ش ها م وخدمات اهمية .2 : المقدرات الجوهيية في اهميتها نوتكم , ساااواء حد على الخدميةو الصاااناعية المنظمات في كبيرة أهميةب الجوهرية لمقدراتتتمتع ا : ( 207-206: 2014) شالش , الخفاجي , اآلتية النقاط قااادرةتااعاازيااز ✓ تنجزه الذي الداخلي لنشااااطفي ا التنافساااية األهمية وأن العالقة ذات التنافساااية األنشاااطة تحقيق على المنظمة :thompson & strickland, 2003) الجوهرية بالمقدرة يسامى المنظمات بقية من أفضال بصاورة المنظمة 114) . american journal of business management, economics and banking volume 14 july, 2023 p a g e | 85 www.americanjournal.org األنشطةتحسين ✓ قيمةبدورها تحقق التي اإلسااااتراتيجية األصااااول في االسااااتثمار على التركيز تعزيز خالل من للمنظمة الفكرية ( .marti, 2004: 432) سوقال لها في موقع أفضل على وتحافظ تبني فأنها وبالتالي مضافة ــد ✓ ــدرات تع المق ً الجوهيية ً ميجعا بميزتها االحتفاظ خالله م المنظمة تاــتطيع الذي األســا وتعتبي زوالتمي األدا لتقييم مهما (wang & zhu, 2007: 23) .البعيد األمد على اآلخيي م أقو ب ورة التنافاية تــــــــواجــــــــه ✓ ا الحديثة منظماتال إلى بحاجة فهي الزبائ أذواو في ات الماـتميةوالتقلب المنافاـةشـدة ب يتمثل كبيي يتحدحاليا م وتجاوزها ضــعفهم قاط وتفادي قوتهم قاط تعزيز في وماــاعدتهم العاملي تمكي خالل م مي ة تكون أن .( cardy & gandz, 2007: 31 ) ي الماتمي التدري و التعليم خالل ــاهم ✓ إدرا ياــ الجوهيية المقدرات م جديدة أ واع ابتكار وكذلك على تلك المقدرات المحافظة في الجوهيية لمقدرتها المنظمة (spendlove, 2007: 407) . اهدا .3 : المقدرات الجوهيية أشــار ( و( 182: 2017 ودا و ، حاــي ( م كل 53: 2018 اال باري، تهد الجوهيية المقدرات أن إلى ) ( 169: 2022) حمد , احمد , ي تي لما : ـيي ـتـعزـيز -أ ـك ـف ـت اـل ــتياتيجي ــحة و اليؤية خالل م االسـ ــاملةالواضـ والخارجية الداخلية بيئتها في المنظمة وموارد لمقدرات الشـ . للمنظمة االستياتيجي النجاح تحقيق باتجاه تلك المقدرات والموارد وتوظيف ي ـي وـف يــةاـل ـت ـن ـب ــتدامة لتحقيق يؤدي ماب وقابلياتها مواردها بي التكامل تحقيق م المنظمة تمك التي تحتيةال الموارد تلك اسـ ــ الم ــــاـفة التي قيـمةال تحقق التي التـكاملـية االجيا ات تبن ي طييق ع والـقابلـيات ع المنظـمة تـلك تميزســ .الاوو في االخيي المنافاي ــد -ت تــــــــهــــــ ــتثمار خالل م الوق إدارة في الكفا ة تحقيقالجوهيية الى المقدرات الوق في المنظمة مواردو قابليات اسـ . المنافاي بقية على والتفو تحقيق ت م التي وبالايعة المناس ــد تــــــــهــــــ عقد في همايـا بما حتملةالم والتهديدات الفي وتحديد المنظمة وامكا ات قابليات تـشخيصلالجوهيية المقدرات واالقتـ ادية واالجتماعية الـاياـسية النظم تحليل ع طييق التقليدية ريي القابليات لتعزيز اإلـستياتيجية التحالفات . فيه تعمل الذي المجتمع تجاه االجتماعية الماؤولية ممارساتالمنظمة ل تبن ي ودعم والثقافية معاييي .4 : المقدرات الجوهيية وهيية بثالثة معاييي رئياية وهي يج ان تتمتع المقدرات الج setiawaty&tjahjono,2019:736): ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 86 www.americanjournal.org ذات (1 ــون ــك ت أن قيمة فييدة م وعها و ادرة م الناحية التنافاية بحيث ي ع على المنافاي تقليدها . اعــادة (2 ــ ــك ــم ي استخدامها على طاو واسع وللعديد م المنجات واالسواو . يج ان تاــاهم (3 في تحقيق الفائدة للماتهلك النهائي والقيمة المقتيحة للزبون . ــاد .5 ــعــــــ أبــــــ : المقدرات الجوهيية م االبعاد االتية : في هذه الدراسة المقدرات الجوهيية ف ابعادتت ل الـــــــمـــــــوارد (1 م الموارد هذه وتت لف , مختلفةال المنظمة أ شـطة إ جاز لغيض توفيها المطلو الموارد تلك وهيالتنظيمية : المالية الموارد, ) والمكائ والمعدات واألبنية األولية كالمواد( المادية الموارد, داخل المنظمة العاملة القو تلك أي , الفكيية الموارداخيياً و ) كاألرض( الطبيعية الموارد, ) األجل طويلالو متوســطالو ق ــييال تمويلال( لألخيي وإي ــــالها األفكار هذه ع التعبيي م خاللها يتم التي واللغة المنظمة قبل م الماــــتخدمة األفكار الموجودات واإلمكانات كل ( على انها baker and sinkula ويعرفها كل من ) ( . 26-25: 1988, الاـالم( والمعرفة الموجودة داخل المنظماة , وقد والمعلومات التنظيمياة والمهاارات والخصاااااائص البشااااارية والعملياات الساااوق في واسااامها التجاري المنظمة كسااامعة ملموساااة غير أو كالمكائن والمباني واألموال ملموساااة تكون . ( baker and sinkula,1999 : 411 ها )االختراع وغير وبراءات الجمهور لدى الذهنية وصورتها ــا (2 ــيؤيــــــ الــــــ والاــياســات األهدا ما يخصفي المنظمة ظي وجهة مشــاركة أ ها على المشــتيكة تعي اليؤية المشــتيكة : وم اتجاه رؤوية المنظمة , فس في مالتعل يحد أن ضــمان ال ــيوري فم .والغايات والتوقعات واألولويات تؤثي ذلك إلى باإلـضافة , والنجاح العمل في التميز ـسيتعزز فيها األكبي المـشتيكة اليؤية ذات الـشيكات أن الميج ــتيكة اليؤية ــدة على المشــ ــاملة تعليمية بنية لبنا مالتعل شــ ــتياتيجيات مع تتطابق داخل المنظمات شــ االســ ما تقدم , إلى باإلضاافة ( . 134: 2019( ) عيدان , ussahawanitchakit,2008) فيها القائمة اتوالممارسـ يعد تغييره , فهذا يجب وما علي من افكار داخل المنظمة الحفاظ يجب ما حول إرشاادات المشاتركة الرؤية توفر ً ً من حياث التغير ساااااريعاة البيئاات مهمااً جاداً في جاانباا التمييز إلى الموظفون ويحتاا تغيير حادوث المتوقع دائماا أقل األفراد ساايكون مشااتركة رؤية فبدون وجود الحالي , الوضااع في يجب البقاء علي تغييره وما يجب ما بين ونتاائجهاا المنظماة بتوقعاات األفراد لعادم معرفاة التنظيمياة المرغوب بهاا المخرجاات في للمشااااااركاة توجهاا (croteau,et.al , 2001 :8049). الــــمــــال (3 رأ ادارة وتاــعى , والعاملي المنظمة ادارة بي االجتماعية التفاعالت إلى البشــيي المال رأ يشــييالبشــيي : وتحقيق المنظمة إ تاجية تحاـــي في ياـــهم ما كل م الســـتفادةل العاملي ات مع التفاهم زيادة الى المنظمات ليمان , رؤو , ) ويي . ( 299: 2015 وآخيون، كاظم( هاأهداف يي البـشيي المال رأ نأ( 2020ـس إلى يـش معيفةال زيادة التي تاــتخد في األخي المهنية التوجيهية والمبادئ والتعليم بالتدري قةالمتعل العمليات جميع اهدا تحقيق إلى األول المقا ب تؤدي ســو التيو ي للعمال االجتماعية واألصــول والقيم والمهارات والقدرات american journal of business management, economics and banking volume 14 july, 2023 p a g e | 87 www.americanjournal.org ــليمان,)رؤو , المنظمة إلى تساااعى التي المنظمات أن إلى (dess,et.al , 2019)يشاااير و .( 302: 2020س يتمتع بشااااري مال رأس جذبو اسااااتقطاب عليها يتوجب المعرفة على القائم في االقتصاااااد قيمة خلقتحقيق و سااالع ابتكار المسااااهمة في خالل من من اساااتفادة اقصاااى تحقيقل عالية وإمكانات ومهارات بمعرفة وخبرات التي والمهاارات والخبرات والمعرفاة الفردياة القادرات إنا على ويعرفا الوقات، مرور معقيماة ذات وخادماات .(dess,et.al , 2019: 107) ومدرائها موظفي المنظمةيمتلكها المبحث الثالث العملي للبحث لجا ا تمهيد سيتم في هذا المبحث عيض الختبارات ال دو والثبات لالستبا ة ، يعقبه عيض وتحليل النتائج واختبار فيضيات spss)البحث، وقد استخد لهذا الغيض مجموعة م األسالي اإلح ائية وباعتماد بي امج التحليل االح ائي v.28)ثال محاور وكما ي تي: المبحث ، وقد ت م هذا المحور األول: اختبارات ال دو والثبات لالستبا ة. . البحثالمحور الثا ي: عيض وتحليل تائج التحليل الوصفي لمتغييات .فيضيات البحث المحور الثالث: اختبار األول المحور ال دو لالستبا ة و الثبات اختبارات ، التحليليةج توفيها في االستبا ة لت ب مؤهلة الستعملها في الدراسة االشيوط الويُعد ال دو والثبات م بحثفي تمثيل موضوع ال الخمس والثالثونإذ ياتعمل اختبار ال دو لت كيد درجة دقة كفا ة فقيات االستبا ة سة استطالعية في ميكز عوامل التمكي الوظيفي وت ثييها في تعزيز المقدرات الجوهيية للمنظمة / درا)الموسو .ياو( خيي تمثيلعال -الماتن يية للدراسات العيبية والدولية / الجامعة الماتن يية اختبار ثبات وصدو االستبا ة : يق د بالثبات ان المقيا لو طبق على مجموعة األفياد فاها بعد مدة • ( لتحديد معامل الثبات، cronbach's alphaم الزم فايعطي النتائج ذاتها، ولتحقيق ذلك استخد معامل ) %(، وهذا يعني أن استبا ة 60( وهو أعلى بكثيي م الحد االد ى المقبول والبالغ )0.91وكا قيمة معامل الثبات ) ، البحث بمقايياها المختلفة ذات ثبات عاٍل ويمك اعتمادها في أوقات مختلفة لألفياد أ فاهم وتعطي النتائج ذاتها ( فإن صدو االستبا ة = ) 0.91) = (crounbach alphaقيمة معامل الثبات الذي استخيج بطييقة )ولما كا ( وهي ابة ممتازة ومعامل مطمئ يؤكد صدو المقيا .0.95 المحور الثا ي عيض وتحليل تائج البحث الميدا ي عيض الباحث تائج التحليل االح ائي الوصفي لمتغييات البحث في هذا المحور ، إذ يوض البحث ماتو اتي )استجابة العينة م خالل م فوفة قوة استجابة الماتجي والتي تمثل ميزان تقدييي وفقا لمقيا likert ) كا قيمة الوسط الحاابي الميج ( إذ الحظ م خالله أ ه إذا 1الخماسي وكما موض بالتف يل في جدول ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 88 www.americanjournal.org ً 1.8إلى أقل م 1متياوحة ) م ، لك إذا بماتو منخفض جدا ( فإن قوة االستجابة تعني عد االتفاو تماما بماتو ( فإن قوة االستجابة تعني عد االتفاو2.6إلى أقل م 1.8تياوح قيمة الوســط الحاابي الميجــ بي ) ( فإن قوة االستجابة 3.4إلى أقل م 2.6، بينما لو كا قيمة الوسط الحاابي الميج تتياوح ) م منخفض ( فإن 4.2إلى أقل م 3.4الوسط الميج ضم الفئة ) م ، بينما إذ سجل قيمة بماتو معتدل تعني محايد ( 5إلى 4.2بينما إذ سجل قيمة الوسط الميج ضم الفئة )م بماتو ميتفع، قوة االستجابة تعني االتفاو جداً. فإن قوة االستجابة تعني االتفاو بماتو ميتفع على الباحث يعتمد للبيا ات الوصفي التحليل عملية في واال حيافات أما الميجحة الحاابية األوساط مقاييس التمكي ) المتغيي الماتقل فقياتواالهمية النابية المطبقة على كل فقية م فقيات االستبا ة وعلى جميع المعيارية : وكا تائج التحليل على النحو االتي , (المقدرات الجوهيية) المتغيي الماتجي و (الوظيفي )المتغيي الماتقل(: الوظيفيوصف وتشخيص فقيات ومعاييي عوامل التمكي أوالً: مشاركة المعلومات وصف وتشخيص فقيات ومعاييي -1 38. مشاركة المعلوماتالمقاييس االح ائية لفقيات (1جدول ) n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات x11 تسعى ادارة المركز الى اتاحة المعلومات الضرورية للعاملين الداء مهامهم . 4.03 1.1 %80.6 5 x12 تساهم اتاحة المعلومات في انجاز العمل والوصول الى االهداف المرسومة . 4.47 0.603 %89.4 1 x13 تتوفر في المركز وسائل متنوعة وسهلة للوصول الى المعلومة ) انترنت , مكتبة , بريد الكتروني , .... , الخ ( 4.11 0.894 %82.2 3 x14 يقوم العاملون في المركز بمشاركة ما يمتلكون من معلومات مع بقية زمالئهم من خالل الندوات و ورش العمل . 4.39 0.718 %87.8 2 x15 يتمتع العاملون في المركز بمهارات اتصال عالية تسهل من عملية تبادل المعلومات وتسهم في تسهيل انجاز المهام . 4.05 0.733 %81 4 x1 84.2% 0.348 4.21 المعدل spss v.28 تائج التحليل االح ائي باستخدا البي امج االح ائي الم در: م خالل الفقيات ) المتغيي هذا اقيتم x11x15 ( إلى األوساط الحاابية واال حيافات 1) ( ويشيي الجدول كس المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و لفقيات مشاركة المعلومات ، أذ يع 4.21)أذ بلغ )3) الجدول المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ ) وتقع هذه ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو أهمية إجابات 5إلى 4.2القيمة ضم الفئة م )م وبا حيا جدا التفاو وبماتو استجابة ميتفعالعينة على مجمل الفقيات )مشاركة المعلومات( اتجه حو ا 0.348معياري بلغ ) ، وبلغ األهمية النابية افياد العينة المبحوثة( والذي يشيي الى تشت ضعيف في إجابات 84.2%لهذا المتغيي ) اإلجابات على فقيات مشاركة المعلومات اتجه ما النابة االكبي م ( ، ويدل ذلك على ان ا االتفاو ) يتبي لعالي واالتفاو ، حيث بي الكاف ان المعلومات قبل االدارة وتوفي وسائل وأاتاحة دوات ية م لبعد مشاركة األهمية النابية الوصول الى المعلومة وتمتع العاملي بمهارات ات ال عالية كل ذلك يااهم في تعزيز . (المعلومات ( الفقية حقق فقد البعد هذا فقيات إما x12 ( على والتي العمل ( ا جاز في المعلومات اتاحة تااهم الميسومة( االهدا الى بمقدار) والوصول الحاابية األوساط أعلى على مقداره 4.47، معياري وبا حيا ) (0.603 89.4% ابية بلغ ) وب همية ( هذه الفقية ، في حي حقق بخ و جداً ( وبماتو استجابة ميتفع , ( الدا مهامهم ( والتي على )تاعى ادارة الميكز الى اتاحة المعلومات ال يورية للعاملي x11الفقية ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 89 www.americanjournal.org ( ، وب همية 1.1( وبا حيا معياري مقداره )4.03على أقل األوساط الحاابية على ماتو هذا البعد والذي بلغ ) 80.6% ابية بلغ ) استجابة ميتفع بخ و هذه الفقية ( وبماتو . وصف وتشخيص فقيات ومعاييي فايو االعمل -2 38. فايو االعملالمقاييس االح ائية لفقيات (2جدول ) n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات x21 االداء تشجع ادارة المركز على اداء فريق العمل بدال من الفردي . 4.17 0.916 %83.2 2 x22 تقوم ادارة المركز دائماً بتشكيل اللجان أَو فَرق اَلعمل لمعالجة المواقف المختلفة . 3.87 0.906 %77.4 5 x23 يعتمد أَعضاء فَرق اَلعمل على بعضهم البعض ويتعاونون فيما بينهم لحل المشكالت. 4.16 0.823 %83.2 3 x24 يميل العاملون في المركز للعمل بروح الفريق الواحد بدال من العمل بشكل فردي . 4.08 0.882 %81.6 4 x25 نتائج العمل الجماعي في الغالب تكون افضل من نتائج العمل بصورة منفردة . 4.39 0.718 %87.8 1 x2 82.6% 0.417 4.13 المعدل spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي م خالل الفقيات ) المتغييهذا تم قيا x21x25 ( إلى األوساط الحاابية واال حيافات 2) ( ويشيي الجدول االعمل ، أذ يعكس الجدول المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و لفقيات فايو 3) المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ ) أذ بلغ ) (4.13 وتقع هذه القيمة ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو أهمية 4.2إلى أقل م 3.4ضم الفئة م ) م وبا حيا معياري و االعمل( اتجه حو االتفاو وبماتو استجابة ميتفعإجابات العينة على مجمل الفقيات )فاي 0.417بلغ ) المبحوثة ( والذي يشيي الى تشت ضعيف في إجابات العينة النابية لهذا افياد ، وبلغ األهمية 82.6%المتغيي ) ي االتفاو اإلجابات على فقيات فايو االعمل اتجه ما ب النابة االكبي م ( ، ويدل ذلك على ان تشجيع االدارة للعمل بيوح الفييق بدال م العمل الفيدي وقيا االدارة بتشكيل ان ) يتبي العالي واالتفاو ، حيث اللجان وفيو العمل وتعاون العاملي فيما بينهم داخل فييق العمل الواحد وأف لية تائج العمل الجماعي على العمل . (همية النابية لبعد فيو العمل الفيدي كل ذلك أد الى ارتفاع اال x25إما فقيات هذا البعد فقد حقق الفقية ) تائج العمل الجماعي في الغال تكون اف ل م ( والتي على ) ( وبا حيا معياري مقداره )4.39(، على أعلى األوساط الحاابية بمقدار) تائج العمل ب ورة منفيدة 0.718 ) 87.8% ابية بلغ ) وب همية بخ و هذه الفقية ، في حي حقق الفقية جداً ( وبماتو استجابة ميتفع (x22 على ( ( والتي على )تقو ادارة الميكز دائماً بتشكيل اللجان أاو فايو االعمل لمعالجة المواقف المختلفة 3.87أقل األوساط الحاابية على ماتو هذا البعد والذي بلغ ) )( وبا حيا معياري مقداره ( ، وب همية 0.906 .( وبماتو استجابة ميتفع بخ و هذه الفقية 77.4% ابية بلغ ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 90 www.americanjournal.org وصف وتشخيص فقيات ومعاييي الحيية واالستقاللية -3 38الحيية واالستقاللية ( المقاييس االح ائية لفقيات 3جدول ) n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات x31 يتمتع العاملون بقدر كافي من حرية التصرف السريع لمعالجة الحاالت الطارئة . 3.55 1.05 %71 5 x32 العاملون يعلمون حدود القانون والتعليمات وال يتعدونها من لحاجة الى رقابة عليهم . ا دون 4.11 0.863 %82.2 2 x33 سياسات واستراتيجيات المركز لدى العاملون تصور كامل عن التي تحقق االهداف المرسومة . 4.08 1.05 %81.6 4 x34 يفضل كل من االدارة و العاملون في المركز ممارسة الرقابة الذاتية بدل الرقابة التقليدية . 4.18 0.834 %83.6 1 x35 تعتمد االدارة اسلوب عقد االجتماعات الدورية مع رؤساء االقسام ومع العاملين بوصفها صيغة للتفاعل معهم للتحقق من ان االداء يسير وفقا للخطط الموضوعة . 4.09 0.969 %81.6 3 x3 80% 0.467 4.0 المعدل spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي م خالل الفقيات ) المتغيي هذا اقيتم x31x35 ( إلى األوساط الحاابية واال حيافات 3) ( ويشيي الجدول المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و لفقيات الحيية واالستقاللية ، أذ يعكس ) الجدول المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ (3 أذ بلغ ) (4.0 وتقع هذه ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو 4.2إلى أقل م 3.4القيمة ضم الفئة م ) م أهمية إجابات العينة على مجمل الفقيات )الحيية واالستقاللية( اتجه حو االتفاو وبماتو استجابة ميتفع 0.467وبا حيا معياري بلغ ) ، وبلغ األهمية افياد العينة المبحوثةيشيي الى تشت ضعيف في إجابات ( والذي 80%النابية لهذا المتغيي ) اإلجابات على فقيات الحيية واالستقاللية النابة االكبي م ( ، ويدل ذلك على ان الت ي لمعالجة امتال العاملي لمد معي م حييةان ) يتبي اتجه ما بي االتفاو العالي واالتفاو ، حيث ارسة اليقابة الذاتية الحاالت الطارئة ومعيفتهم بحدود القا ون والتعليمات ووضوح الاياسات واالستياتيجيات ومم ة بعقد اجتماعات دورية مع رؤسا االقاا والعاملي كل ذلك يؤدي الى تعزيز بعد الحيية واالستقالية راوقيا االد . (لبعد لهذا ا األهمية النابيةوازدياد x34إما فقيات هذا البعد فقد حقق الفقية ) يف ل كل م االدارة و العاملون في الميكز ( والتي على ) ( وبا حيا معياري 4.18(، على أعلى األوساط الحاابية بمقدار) ممارسة اليقابة الذاتية بدل اليقابة التقليدية 0.834مقداره ) 83.6% ابية بلغ ) وب همية ( بخ و هذه الفقية ، في حي جداً ( وبماتو استجابة ميتفع ( والتي على )يتمتع العاملون بقدر كافي م حيية الت ي الاييع لمعالجة الحاالت x31حقق الفقية ) 3.55الطارئة .(على أقل األوساط الحاابية على ماتو هذا البعد والذي بلغ ) ي مقداره )( وبا حيا معيار 1.05 ) .( وبماتو استجابة ميتفع بخ و هذه الفقية 71%، وب همية ابية بلغ ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 91 www.americanjournal.org يوصف وتشخيص فقيات ومعاييي التدري والتطوي -4 38التدري والتطويي ( المقاييس االح ائية لفقيات 4دول )ج n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات x41 .4 77.8% 1.03 3.89 تسعى إدارة المركز لتطوير وتدريب العاملين فيها x42 فرصة االشترا بالدورات التدريبية متاحة لجميع العاملين بالمنظمة . 4.00 0.930 %80 3 x43 تهتم ادارة المركز باكتساب العاملين فيها لمعلومات ومهارات جديدة من خالل التدريب . 4.26 0.601 %85.2 1 x44 يير العاملون في االشتيا بالدورات التدريبية لغيض تطويي قدراتهم ومهاراتهم الشخ ية . 4.08 0.850 %81.6 2 x4 80.2% 0.660 4.01 المعدل spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي ) المتغيي هذا اقيتم الفقيات م خالل x41x44 الجدول) الحاابية واال حيافات 4( ويشيي األوساط إلى ) والتطويي ، أذ يعكس المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و لفقيات التدري 3) الجدول المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ ) أذ بلغ ) (4.01 وتقع هذه ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو 4.2إلى أقل م 3.4القيمة ضم الفئة م ) م )ا الفقيات مجمل على العينة إجابات ميتفعأهمية استجابة وبماتو االتفاو اتجه حو والتطويي( لتدري 0.660وبا حيا معياري بلغ ) ، وبلغ األهمية افياد العينة المبحوثة( والذي يشيي الى تشت ضعيف في إجابات 80.2%النابية لهذا المتغيي ) ي اإلجابات على فقيات التدري والتطوي النابة االكبي م ( ، ويدل ذلك على ان فيها لغيض كا دارة لتطويي وتدري العاملي اإل يسع ان ) يتبي اتجه ما بي االتفاو العالي واالتفاو ، حيث التدري م خالل جديدة ومهارات التدريبيةوازدياد معلومات بالدورات االشتيا العاملون في في ورربة لبعد األهمية النابية ية كلها تااهم في تعزيزالشخ ومهاراتهم قدراتهم لغيض تطويي بتلك الدورات االشتيا ( التدري والتطويي ( الفقية حقق فقد البعد هذا فقيات x43إما ( على والتي فيها ( العاملي باكتاا الميكز ادارة تهتم وبا حيا معياري ( 4.26(، على أعلى األوساط الحاابية بمقدار) لمعلومات ومهارات جديدة م خالل التدري 0.601مقداره ) 85.2% ابية بلغ ) وب همية ( بخ و هذه الفقية ، في حي جداً ( وبماتو استجابة ميتفع ( والتي على )تاعى إدارة الميكز لتطويي وتدري العاملي فيها.(على أقل األوساط x41حقق الفقية ) 3.89الحاابية على ماتو هذا البعد والذي بلغ ) ا حيا معياري مقداره )( وب ( ، وب همية ابية بلغ 1.03 .( وبماتو استجابة ميتفع بخ و هذه الفقية %77.8) التحفيز وصف وتشخيص فقيات ومعاييي -5 38 التحفيز( المقاييس االح ائية لفقيات 5جدول ) n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات x51 . 1 81.6% 0.850 4.08 تهتم االدارة بتحفيز عامليها على تحمل المسؤولية في العمل x52 .2 75.8% 1.01 3.79 تشجع ادارة المركز االفكار الجديدة المتعلقة بتحسين االداء x53 تعمل ادارة المركز على اَيجاد الدافعية لدى العاملين فيها وتحفيزهم الداء مهام عملهم بنجاح . 3.74 0.978 %74.8 3 x54 يتلقى العاملون مكافأة مادية أَو معنوية عندما يقومون بأعمال ابداعية خار اعمالهم الروتينية . 3.55 1.2 %71 4 x5 75.8% 0.746 3.79 المعدل american journal of business management, economics and banking volume 14 july, 2023 p a g e | 92 www.americanjournal.org spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي م خالل الفقيات ) المتغيي هذا اقيتم x51 x54 ( إلى األوساط الحاابية واال حيافات 5) ( ويشيي الجدول الجدول المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و فقيات التحفيز ، أذ يعكس 3) المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ ) أذ بلغ ) (3.79 وتقع هذه القيمة ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو أهمية 4.2إلى أقل م 3.4ضم الفئة م ) م وبا حيا معياري بلغ و االتفاو وبماتو استجابة ميتفعإجابات العينة على مجمل فقيات )التحفيز( اتجه ح ً ( والذي يشيي الى تشت ضعيف0.746) ، وبلغ األهمية النابية لهذا افياد العينة المبحوثةفي إجابات ابيا 75.8%المتغيي ) اإلجابات على فقيات التحفيز اتجه ما بي االتفاو النابة االكبي م ( ، ويدل ذلك على ان العمل وتشجيعها لالفكار في الماؤولية تحمل على بتحفيز العاملي االدارةقيا ان ) يتبي لي واالتفاو ، حيث العا بنجاح عملهم مها الدا فيها وتحفيزهم العاملي لد الدافعية االدا والعمل على اايجاد بتحاي المتعلقة الجديدة كل هذه االمور قد ساهم اليوتينية اعمالهم خارج ابداعية ب عمالعند القيا معنوية أاو مادية مكافاات ومنحهم . ( في تعزيز بعد التحفيز وازدياد اهميته النابية إما فقيات هذا البعد فقد حقق الفقية ) x51 ( والتي على )تهتم االدارة بتحفيز عامليها على تحمل الماؤولية ( وبا حيا معياري مقداره ) .084اابية بمقدار)في العمل(، على أعلى األوساط الح 0.850 ابية بلغ وب همية ( (%81.6 بخ و هذه الفقية ، في حي حقق الفقية ) جداً ( وبماتو استجابة ميتفع x54 والتي على ) على أقل , ( اليوتينيةابداعية خارج اعمالهم يتلقى العاملون مكاف ة مادية أاو معنوية عندما يقومون ب عمال ) ( ، وب همية ابية 1.2( وبا حيا معياري مقداره )3.55األوساط الحاابية على ماتو هذا البعد والذي بلغ ) .( وبماتو استجابة ميتفع بخ و هذه الفقية 71%بلغ ) يت م خالل اما بالنابة الى وصف المتغيي الماتقل )عوامل التمكي الوظيفي( على الماتو االجمالي ف : يلي( أن ماتو اإلجابات ع عوامل التمكي الوظيفي ما 6الجدول ) ( ماتو اإلجابات ع عوامل التمكي الوظيفي 6الجدول ) عوامل التمكي الوظيفي ابعاد الوسط الحاابي الميج اال حيا المعياري تيتي االبعاد االول 0.348 4.21 مشاركة المعلومات اَلعمل فَرق الثا ي 0.417 4.13 اليابع 0.467 4.0 الحرية واالستقاللية الثالث 0.660 4.01 التدريب والتطوير الخامس 0.746 3.79 التحفيز عوامل التمكين الوظيفي اجمالي 4.03 0.384 .spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي فقد حقق المتغيي الماتقل عوامل التمكي الوظيفي ألبعاد المتغيي الماتقل،على قيم األوساط الحاابية اً بنا -1 بلغ ) ( في 4.2إلى أقل م 3.4( وتقع هذه القيمة ضم الفئة م ) م 4.03على الماتو اإلجمالي وسطاً م فوفة قوة استجابة افياد العينة لتوض ان ماتو أهمية إجابات العينة على مجمل فقيات )التحفيز( اتجه في اجابة وتجا س (، وهذا يشيي الى اتفاو0.384اتو استجابة ميتفع وبا حيا معياري ) حو االتفاو وبم .على الماتو االجمالي عوامل التمكي الوظيفيالمتغيي افياد العينة حول المعلومات -2 مشاركة بُعد ابعادأحقق بي الحاابية االوساط التمكي عوامل"الماتقل المتغيي على الحيية واالستقاللية يو العمل يليها بُعد التدري والتطويي يليها بُعدعد فب را عينة البحث يليهابحا اً "الوظيفي عد التحفيز بالميتبة االخيية. بثم ُ american journal of business management, economics and banking volume 14 july, 2023 p a g e | 93 www.americanjournal.org ثا ياً: وصف وتشخيص فقيات ومعاييي المقدرات الجوهيية )المتغيي الماتجي (: 38. المقدرات الجوهيية( المقاييس االح ائية لفقيات 7جدول ) n= المتوسط الفقية اليمز الحاابي اال حيا المعياري االهمية النابية تيتي الفقيات y1 يمتل المركز الموارد التنظيمية الكافية التي تمكن من انجاز مهام بكفاءة . 3.71 1.03 %74.2 12 y2 تسعي ادارة المركز الى تنظيم وتعزيز قدراتها المادية . لمادية للحفاظ على موقعها التنافسيا وغير 4.03 1.0 %80.6 5 y3 تقوم ادارة المركز بتسخير الموارد التنظيمية المتاحة لديها لتحقيق االهداف المرسومة . 4.06 0.822 %80.6 4 y4 تسعى ادارة المركز الى معالجة النقص الحاصل في على ا القدرات التأثير دون المادية وغير لمادية مستوى االداء . 3.89 0.953 %77.8 8 y5 . 2 82.6% 1.11 4.13 رؤية المركز ورسالت واضحة لجميع المنتسبين y6 الى يتم مشاركة رؤية المركز فيما يخص الوصول مع كافة االهداف ومع العلمية االقسام رؤساء المنتسبين . 3.87 1.13 %77.8 9 y7 يتم اخذ رأي رؤساء االقسام العلمية والعاملين فيما سياسات المركز البحثية . يخص رسم 3.95 1.01 %79 6 y8 تتمتع استراتيجية المركز بالشمول والمرونة وقابلية التعديل حسب المتغيرات والظروف . 3.84 1.26 %76.8 10 y9 تعتبر الموارد البشرية في المركز احدى نقاط القوة التي يتملكها . 4.39 0.823 %87.8 1 y10 تسعى ادارة المركز الى تطوير مواردها البشرية من والورش خالل الندوات في والمشاركة التدريب التعليمية . 3.74 1.15 %74.8 11 y11 رأس المال البشري الموجود تتعامل ادارة المركز مع في باعتبارهم من اهم الموارد الموجودة لديها . 4.11 1.29 %82.2 3 y12 البشري المال الى تعزيز رأس المركز ادارة تسعى نقل تشجيع أو الجديدة التعيينات خالل من في المنتسبين الي من بقية التشكيالت . 3.97 1.05 %79.4 5 y 79.4% 0.770 3.97 المعدل spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي م خالل الفقيات ) المتغييهذا تم قيا y1 – y12 ( إلى األوساط الحاابية واال حيافات 7) ( ويشيي الجدول المقدرات الجوهيية ، أذ يعكس الجدول المعيارية واالهمية النابية المتعلقة بوجهة ظي العينة المبحوثة بخ و ) المذكور وسطاً حاابياً عاماً اعلى م الوسط الحاابي المعياري والبالغ (3 أذ بلغ ) (3.97 وتقع هذه القيمة ( في م فوفة قوة استجابة افياد العينة لتوض ان ماتو أهمية إجابات 4.2إلى أقل م 3.4ضم الفئة م )م قيات )المقدرات الجوهيية( اتجه حو االتفاو وبماتو استجابة ميتفع وبا حيا معياري العينة على مجمل ف ، وبلغ األهمية النابية لهذا افياد العينة المبحوثة ( والذي يشيي الى تشت ضعيف ابيا في إجابات 0.770بلغ ) 79.4%المتغيي ) لمقدرات الجوهيية اتجه ما بي اإلجابات على فقيات ا النابة االكبي م ( ، ويدل ذلك على ان تلك تاخيي و مادية وريي مادية كافية الميكز لموارد تنظيمية امتال ان ) يتبي االتفاو العالي واالتفاو ، حيث مع وضوح رؤية الميكز ورسالته واالخذ بيأي رؤسا االقاا والعاملي فيما لتحقيق االهدا الميسومة الموارد باعتبارهم الموجود وتعامل االدارة مع رأ المال البشييعي لتطويي الموارد البشيية الاياسات والا يخص رسم . (للبعد التابع " المقدرات الجوهيبة " األهمية النابية لديها كل ذلك يااهم في زيادة الموجودة الموارد اهم م american journal of business management, economics and banking volume 14 july, 2023 p a g e | 94 www.americanjournal.org إما فقيات هذا البعد فقد حقق الفقية ) y9 تعتبي الموارد البشيية في الميكز احد قاط ( والتي على ) ( وبا حيا معياري مقداره )4.39(، على أعلى األوساط الحاابية بمقدار) القوة التي يتملكها 0.823 وب همية ( %87.8 ابية بلغ ) ة ، في حي حقق الفقية )( وبماتو استجابة ميتفع بخ و هذه الفقي sd_8 والتي ) األوساط أقل .(على بكفا ة مهامه ا جاز م تمكنه التي الكافية التنظيمية الموارد الميكز )يمتلك على ( ، وب همية ابية بلغ 1.03( وبا حيا معياري مقداره )3.71الحاابية على ماتو هذا البعد والذي بلغ ) (% 74.2 بخ و هذه الفقية معتدلة ( وبماتو استجاب . المحور الثالث: اختبار فيضيات البحث ث بين متغيرات البح التأثير راختبا الفقيةاعى ت اختبار هذه الثا ية إلى اليئياة البحث البحثفيضية متغييات بي الت ثيي باختبار : والمتعلقة والفيضيات المتفيعة عنها الماتجي (المقدرات الجوهيية )المتغيي و الماتقل(عوامل التمكي الوظيفي )المتغيي . البايط الخطي باستخدا تحليل اال حدار فيضية معنوي اليئياة البحث الختبار صحة ت ثيي هنا كان اذا المقدرات لفيما في الوظيفي التمكي عوامل .(8كما في الجدول ) نتائج حدار الخطي البايط وكا الو ال فقد تم استخدا تحليل االأامة ب ورة ع الجوهيية ( جدول تحليل التباي لمعادلة عوامل التمكي الوظيفي في المقدرات الجوهيية 8جدول ) n= 38 spss v.28الم در: تائج التحليل االح ائي باستخدا البي امج االح ائي f –( قيم اختبار 8يبي الجدول ) والذي بلغ ) المقدرات الجوهييةعوامل التمكي الوظيفي في ل ( ، و 91.650 داللة sig. (2-tailed) (0.001)بماتو في الوظيفي التمكي لعوامل معنوي ت ثيي وجود يعني وهذا ،> (، وبلغ قيمة معامل (%99.9المقدرات الجوهيية عند ماتو ثقة بلغ ( ( ، اي ان زيادة قيمة عوامل 1.700 1.700التمكي الوظيفي بمقدار وحدة واحدة ستؤدي الى تغيي بمقدار ) عند المقدرات الجوهيية( في عينة البحث ( م التباي الحاصل %71.8( والذي يعني أن ما مقداره )0.718( والبالغة )r2، وأشارت قيمة معامل التحديد ) األ موذج، وأن ) ي دخلتال الوظيفي عوامل التمكيهو تباي ُمفا ي بفعل المقدرات الجوهييةفي ( هو 28.2% الفرضيات المتغيرات ftest ماتو الداللة *sig. (2tailed) معامل ا االنحدار بيت  معامل التحديد r2 % المستجيب المستقل نسبة التفسير h1-1 (0.001) 17.127 المقدرات التجوهرية مشاركة المعلومات > 1.257 32.2% h1-2 (0.001) 19.740 المقدرات التجوهرية فَرق اَلعمل > 1.100 35.4% h1-3 (0.001) 15.568 المقدرات التجوهرية الحرية واالستقاللية > 0.906 30.2% h1-4 التجوهرية المقدرات التدريب والتطوير 19.002 (0.001) > 0.686 34.5% h15 (0.001) 38.463 المقدرات التجوهرية التحفيز > 0.742 51.7 % h1 (0.001) 91.650 المقدرات التجوهرية عوامل التمكين الوظيفي > 1.700 71.8% american journal of business management, economics and banking volume 14 july, 2023 p a g e | 95 www.americanjournal.org للبحث، اي يوجد اليئياةفيضية التقبل اً ، اذللبحث الحاليقبل عوامل لم تدخل أ موذج اال حدار تباي ُمفا ي م ت ثيي معنوي ذو داللة اح ائية لعوامل التمكي الوظيفي في المقدرات الجوهيية. في المقدرات الجوهيية على ةعلى حد عوامل التمكي الوظيفي ب بعادها كالا لوفيما ي تي تحليل للت ثييات الفيعية : ماتو الفيضيات الفيعية المقدرات الجوهيية فيمشاركة المعلومات تحليل ت ثيي 11 f –( قيم اختبار 8اليئياة يبي الجدول ) البحث الختبار صحة الفيضية الفيعية االولى المنبثقة ع فيضية بل والذي الجوهيية المقدرات في المعلومات )مشاركة داللة 17.127لغ بماتو و ، ) sig. (2-tailed) (0.001) مشاركة المعلومات في المقدرات الجوهيية عند ماتو ثقة بلغ ل< ، وهذا يعني وجود ت ثيي معنوي (، ،وبلغ قيمة معامل (99%اكبي م ( ، اي ان زيادة قيمة مشاركة المعلومات بمقدار وحدة واحدة 1.257) ( في المقدرات الجوهيية عند الميكز قيد الدراسة ، وأشارت قيمة معامل التحديد 1.257ستؤدي الى تغيي بمقدار ) (r2 والبالغة )32.2( والذي يعني أن ما مقداره )(0.322% يية عند ( م التباي الحاصل في المقدرات الجوه ال المعلومات بفعل مشاركة ُمفا ي تباي الدراسة هو األ موذج، وأن ) ي دخلتالميكز قيد تباي 67.8% ( هو تقبل الفيضية الفيعية االولى ضم فيضية اً ذج اال حدار للدراسة الحالية، اذُمفا ي م قبل عوامل لم تدخل أ مو مشاركة المعلومات في المقدرات الجوهيية. لح ائية اليئياة ، اي يوجد ت ثيي معنوي ذو داللة ا البحث المقدرات الجوهيية في فايو االعملتحليل ت ثيي 21 f –( قيم اختبار 8اليئياة يبي الجدول ) البحث المنبثقة ع فيضية الثا يةالختبار صحة الفيضية الفيعية ( ، و بماتو داللة 19.740فايو االعمل في المقدرات الجوهيية والذي بلغ )ل sig. (2-tailed) (0.001) ، > فايو االعمل في المقدرات الجوهيية عند ماتو ثقة بلغ اكبي م لوهذا يعني وجود ت ثيي معنوي (، ،وبلغ (%99 قيمة معامل ( 1.100ار وحدة واحدة ستؤدي الى تغيي بمقدار )( ، اي ان زيادة قيمة فايو االعمل بمقد1.100) ( والذي (0.354( والبالغة r2في المقدرات الجوهيية عند الميكز قيد الدراسة ، وأشارت قيمة معامل التحديد ) ( م التباي الحاصل في المقدرات الجوهيية عند الميكز قيد الدراسة هو تباي ُمفا ي %35.4يعني أن ما مقداره ) األ موذج، وأن ) ي دخللذو االعمل ابفعل فاي ( هو تباي ُمفا ي م قبل عوامل لم تدخل أ موذج اال حدار 64.6% اليئياة ، اي يوجد ت ثيي معنوي ذو داللة البحث ضم فيضية الثا يةللدراسة الحالية، اذن تقبل الفيضية الفيعية فايو االعمل في المقدرات الجوهيية. لاح ائية المقدرات الجوهيية في الحيية واالستقاللية تحليل ت ثيي 31 f –( قيم اختبار 8اليئياة يبي الجدول ) البحث المنبثقة ع فيضية الثالثةالختبار صحة الفيضية الفيعية ( ، و بماتو داللة 15.568لحيية واالستقاللية في المقدرات الجوهيية والذي بلغ )ل sig. (2-tailed) (0.001) لحيية واالستقاللية في المقدرات الجوهيية عند ماتو ثقة بلغ اكبي م ل< ، وهذا يعني وجود ت ثيي معنوي (، ،وبلغ قيمة معامل (%99 ( ، اي ان زيادة قيمة الحيية واالستقاللية بمقدار وحدة واحدة ستؤدي 0.906) ( في المقدرات الجوهيية عند الميكز قيد الدراسة ، وأشارت قيمة معامل التحديد ) 0.906الى تغيي بمقدار ) r2 ) %30.2( والذي يعني أن ما مقداره )(0.302والبالغة وهيية عند الميكز ( م التباي الحاصل في المقدرات الج األ موذج، وأن ) ي دخللتقيد الدراسة هو تباي ُمفا ي بفعل الحيية واالستقاللية ا ( هو تباي ُمفا ي م 69.8% اذ الحالية، للدراسة اال حدار أ موذج تدخل لم الفيعية اً قبل عوامل الفيضية فيضية الثالثةتقبل البحث ضم لحيية واالستقاللية في المقدرات الجوهيية. لاللة اح ائية اليئياة ، اي يوجد ت ثيي معنوي ذو د المقدرات الجوهيية في التدري والتطوييتحليل ت ثيي 41 f –( قيم اختبار 8اليئياة يبي الجدول ) البحث المنبثقة ع فيضية اليابعةالختبار صحة الفيضية الفيعية ( ، و بماتو داللة 19.002لتدري والتطويي في المقدرات الجوهيية والذي بلغ )ل sig. (2-tailed) (0.001) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 96 www.americanjournal.org معنوي ت ثيي وجود يعني وهذا ، م ل< اكبي بلغ ثقة ماتو عند الجوهيية المقدرات في والتطويي لتدري (، ،وبلغ قيمة معامل (%99 والتطويي بمقدار وحدة واحدة ستؤدي ( ، اي ان زيادة قيمة التدري 0.686) ( في المقدرات الجوهيية عند الميكز قيد الدراسة ، وأشارت قيمة معامل التحديد ) 0.686الى تغيي بمقدار ) r2 ) ( م التباي الحاصل في المقدرات الجوهيية عند الميكز %34.5( والذي يعني أن ما مقداره )(0.345والبالغة األ موذج، وأن ) ي دخللذفا ي بفعل التدري والتطويي اقيد الدراسة هو تباي مُ ( هو تباي ُمفا ي م قبل 65.5% اليئياة البحث ضم فيضية اليابعة تقبل الفيضية الفيعية اً ذج اال حدار للدراسة الحالية، اذعوامل لم تدخل أ مو جوهيية.لتدري والتطويي في المقدرات الل، اي يوجد ت ثيي معنوي ذو داللة اح ائية المقدرات الجوهيية في التحفيز تحليل ت ثيي 51 – ( قيم اختبار 8) اليئياة يبي الجدول البحث المنبثقة ع فيضية الخاماةالختبار صحة الفيضية الفيعية f ( ، و بماتو داللة 38.463لتحفيز في المقدرات الجوهيية والذي بلغ )ل sig. (2-tailed) (0.001) ، > لتحفيز في المقدرات الجوهيية عند ماتو ثقة بلغ اكبي م لوهذا يعني وجود ت ثيي معنوي (، ،وبلغ (%99 قيمة معامل ( في 0.742ستؤدي الى تغيي بمقدار )( ، اي ان زيادة قيمة التحفيز بمقدار وحدة واحدة 0.742) ( والذي يعني (0.517( والبالغة r2المقدرات الجوهيية عند الميكز قيد الدراسة ، وأشارت قيمة معامل التحديد ) ( م التباي الحاصل في المقدرات الجوهيية عند الميكز قيد الدراسة هو تباي ُمفا ي بفعل %51.7أن ما مقداره ) األ موذج، وأن ) دخلي لذالتحفيز ا ( هو تباي ُمفا ي م قبل عوامل لم تدخل أ موذج اال حدار للدراسة 48.3% اذ الفيعية اً الحالية، الفيضية فيضية الخاماةتقبل داللة البحث ضم ذو معنوي ت ثيي يوجد اي ، اليئياة لتحفيز في المقدرات الجوهيية. لاح ائية اليابع المبحث االستنتاجات والتوصيات والمياجع االستنتاجات اوال : األ .1 ب ن الننتائج ( نابيةالهمية اظهيت المعلومات ) مشاركة ان (84.2%) بلغ لبعد ذلك على ويدل . ما بي االتفاو العالي واالتفاو كا تتياوح هذا البعداإلجابات على فقيات النابة االكبي م النابة االكبي ويدل ذلك على ان ( 82.6%) بلغ ( يو العملفلبعد ) نابيةالهمية اظهيت الننتائج ب ن األ .2 .ما بي االتفاو العالي واالتفاو كا تتياوح هذا البعداإلجابات على فقيات م النابة ويدل ذلك على ان (80%)بلغ ( الحيية واالستقالليةلبعد ) نابيةالهمية اظهيت الننتائج ب ن األ .3 .ما بي االتفاو العالي واالتفاو كا تتياوح هذا البعداإلجابات على فقيات االكبي م النابة ويدل ذلك على ان (80.2%)بلغ ( التدري والتطوييلبعد ) نابية الهمية اظهيت الننتائج ب ن األ .4 .ما بي االتفاو العالي واالتفاو كا تتياوح هذا البعداإلجابات على فقيات االكبي م النابة االكبي ويدل ذلك على ان (75.8%)بلغ (التحفيز لبعد ) نابيةالهمية اظهيت الننتائج ب ن األ .5 .ما بي االتفاو العالي واالتفاو كا تتياوح هذا البعداإلجابات على فقيات م األ .6 ب ن الننتائج بلغ الماتجي ( المتغيي) الجوهيية المقدرات ومعاييي لفقيات نابيةالهمية اظهيت ما بي االتفاو العالي كا تتياوح هذا البعداإلجابات على فقيات النابة االكبي م ويدل ذلك على ان ( %79.4) . واالتفاو الننتائج وجود .7 الوظيفي اظهيت التمكي لعوامل ذو داللة اح ائية معنوي المقدرات مجتمعة ت ثيي في . ((%99.9الجوهيية عند ماتو ثقة بلغ الجوهيية مشاركة المعلومات في المقدرات بعد ل د ت ثيي معنوي ذو داللة اح ائية ووجاظهيت الننتائج .8 . ((99%ي م ثعند ماتو ثقة بلغ اك american journal of business management, economics and banking volume 14 july, 2023 p a g e | 97 www.americanjournal.org ت ثيي .9 وجود الننتائج عند الجوهيية المقدرات في العمل فايوبعد ل اح ائية داللة ذو معنوي اظهيت . ((99%ي م ثماتو ثقة بلغ اك الجوهيية المقدرات في واالستقاللية لحييةبعد ال اح ائية داللة ذو معنوي اظهيت الننتائج وجود ت ثيي .10 (.(99%ي م ثعند ماتو ثقة بلغ اك عند الجوهيية المقدرات في والتطويي لتدري بعد ال اح ائية داللة ذو معنوي اظهيت الننتائج وجود ت ثيي .11 . ((99%ي م ثماتو ثقة بلغ اك عند ماتو المقدرات الجوهييةلتحفيز في بعد ال ت ثيي معنوي ذو داللة اح ائية اظهيت الننتائج وجود .12 (.(99%ي م ث ثقة بلغ اك : ثا يا / التوصيات في ضو ما تقد م استنتاجات تم اقتياح التوصيات التالية : ــيورة قيــا .1 ضــ وتقوية مهارات المعلومة الى الوصـــول و وســـائل أدوات وتوفيي للعاملي الكافية المعلومات إدارة الميكز باتاحة .الميكز داخلالمعلومات مشاركة ل مان تعزيز بعد االت ال لد العاملي ــيورة قيــا .2 ضــ وتشـجيع العاملي للتعاون العمل وفيو اللجان وتاـهيل تشـكيل الفييق الواحد بيوح العمل بتشـجيع إدارة الميكز ــلـية الواـحد العـمل فييق داـخل بينهم فيـما لغيض تقوـية بـعد فيو العـمل للـعاملي الجـماعي العـمل ـتائج وبـيان أف ــ .داخل الميكز ــيورة قيــا .3 ضــ ل على من العـم ه إدارة الميكز ـب املي فـي ة م معي ـمد الـع ــي حيـي االت لمعالـجة الت ــ ة الـح ارـئ ادة الـط وزـي االدارة ف الا ع ضيورة قيا الذاتية اليقابة وتشجيعهم على ممارسة النافذة والتعليمات القا ون بحدود معيفتهم لد العاملي . واالستقالية الحيية بما يعزز والعاملي االقاا رؤسا مع الدورية االجتماعات بعقد أن .4 ــيورة ضـــــ ــعى إدارة الميكز لتطويي والعـمل على زـيادة ـجدـيدة ومـهارات معلوـمات كاــــ لغيض فـيه الـعاملي وـتدرـي تاــ ــتيا في ــجيع التدريبية بالدورات االشـ ــتيا على العاملي وتشـ ــاهمة في تعزيز بعد الدورات بتلك االشـ للماـ الميكز . في العاملي تطوييو تدري ــيورة قيــا .5 ضــ االدا بتحاـي المتعلقة الجديدة االفكار وتشـجيع العمل في الماـؤولية تحمل وحثهم على العاملي بتحفيز االدارة معنوـية أاو ـمادـية مـكاـفاات ومنحهم بنـجاح عملهم مـها الدا وتحفيزهم الـعاملي ـلد اـلدافعـية اايـجاد على والعـمل وازدياد التحفيز بعد تعزيز في تاــاهم االمور هذه حيث أن كل اليوتينية اعمالهم خارج ابداعية ب عمال القيا عند النابية . اهميته ــيورة قيــا .6 ضــ ــتياتيجـيةإدارة الميكز بتبني ودعم تعزيز المـقدرات م دور كبيي في الـما لـه بـكاـفة ابـعادـها التمكي الوظيفي اســ . الميكز داخلالجوهيية ــعي .7 ــيورة س ض ــل أدا بما يحقق ــول إلى اف ـ ــى ما لديهم والتعاون مع ادارة الميكز بغية الوصـ العاملي داخل الميكز لبذل اق ـ النجاح و التميز لهم وللميكز في اان واحد . المراجع والمصادر/ ثالثا المراجع العربية : american journal of business management, economics and banking volume 14 july, 2023 p a g e | 98 www.americanjournal.org احمااد المعاااني، .1 الطبعة ،"معاصارة ادارية قضاايا" ، ساعود محمد وجرادات، رشااد أساماء والصاالح، يوساف احمد وعريقان، اساماعيل . 2011 عمان، للنشر، وائل دار االولى، ,, عااادام .2 امااار ة كلي, الماجساتير شاهادة نيل متطلبات ضامن مكملة , مذكرة العاملين تمكين على التحويلية القيادة أثر, مراد , كواشاي . 2017ر , الجزائ,مهدي بن يبرالع ةمعجا, ريالتسي وعلوم ةرياوالتج ةديااالقتص العلوم الحساااااين , عباد .3 للعلوم بغداد كلية مجلةالتقني ", التعليم هيئة في لدى العاملين الوظيفي الرضاا على االداري التمكين جواد , " اثر صافاء . 2012, والثالثون الثاني العدد , الجامعة االقتصادية قاادري ، معرا .4 االقتصاااادية العلوم كلية التساااير، علوم في ماجساااتير رساااالة ، "التنظيمي االبداع على االداري التمكين اثر "، احمد . 2015,الجزائر , بسكرة خيضر، محمد ،جامعة التسير وعلوم والتجارية الحيااالي , ايمااان .5 , 38, المجلد 122 الرافدين , العدد الوظيفي ", مجلة تنمية الرضااااا تحقيق في وتأثيره االداري علي احمد ," التمكين 2019 . ال فيحاان , ايثاار .6 المنظماة الخادمياة ", مجلاة العلوم عباد الهاادي , العاامري , عالء الادين برع ,: عوامال التمكين االداري وتااثيرهاا في اداء . 2016, 88, العدد 22االقتصادية واالدارية , المجلد جايارةها م،هاباودر .7 , الجافة لممناطق والتقني العممي البحث مركز حالة رسااة ا د :ينلالعام لدى اإلداري االبداع ىلع اإلداري التمكين أثر "، . 2013, رائالجز عمر، برناوي جاواد راضاااااي، .8 ( , 1, المجلد ) واالقتصااااادية اإلدارية للعلوم القادسااااية مجلة العاملين " ، بإبداع وعالقت اإلداري التمكين ،" محساااان . 2010العراق , الكربولي , حااتم .9 اإلبداعي ", مجلة جامعة االنبار للعلوم االقتصااادية واالدارية , الساالو تعزيز فَي اإلداري اَلتمكين دور خليل ابراهيم ," . 2019( , 24( , العدد )11المجلد ) . الذهب , ياسار محمد ," اساتارتيجية التمكين واثرها في الميزة التنافساية ", رساالة ماجساتير غير منشاورة , كلية 10 . 2004االدارة واالقتصاد , جامعة بغداد , الملو , جالل ساااااعاد ," اثر اساااااتراتيجياة التمكين في تعزيز االباداع المنظمي ", اطروحاة دكتوراه , كلياة االدارة . 11 . 2002واالقتصاد , جامعة الموصل , في ادارة المعرفة ", الطبعة االولى , دار الصااافاء للنشااار والتوزيع , الزيادات , محمد عواد ," اتجاهات معاصااارة .12 . 2008االردن , عمان , . الدليمي , محمود فهد , عبد الرضااا , افراح خضااير ," دور اسااتراتيجية التمكين في االداء الوظيفي , مجلة جامعة 13 . 2016, العدد االول , انساني , 14كربالء العلمية , المجلد يتي،هال. 14 إدارة, خالد ، البشرية الموارد , 1ط نشر،لل وائل دار . 2005دن , , االر عمان المعاني،. 15 ينلالعام ابداع في ثاره وا اإلداري التمكين ، ارشايدة وأخو عودة أيمن الجامعة في ةلالمج األردنية ، االردنية ،2, ط 5لد المج االعمال، إدارة في . 2009, االردن . كاظم،16 عبيد،, جبار صااادق مخيف،, جاساام علي " ، نعم امير العالقة االسااتراتيجي الجوهرية والتجديد المقدرات ،" واألثر 2015, والثالثون الثالث العاشر، العدد المجلد واإلدارية، االقتصادية للعلوم الغري مجلة . حسااااين،. 17 اإلدارة التميز التنظيمي , مجلة تحقيق في الجوهرية القدرات دور عبدهللا،" احمد , دانو ، احمد مظفر 2017عشر , واحد مئة العدد االربعون، السنة واالقتصاد، . . األنباري، 18 ماجساااتير، رساااالة االساااتراتيجية " ، الريادة في وتأثيرها الجوهرية ," المقدرات علي عبادي فخري . 2018العراق , العراقية، الجامعة american journal of business management, economics and banking volume 14 july, 2023 p a g e | 99 www.americanjournal.org حمد , عامر . 19 تكريت ", مجلة االسااااتراتيجية البراعة في الجوهرية المقدرات فارس ," أثر سااااامر علي , أحمد , . 2022, (2) الجزء ، 58 رقم ، 18 المجلد , واالقتصادية االدارية للعلوم السالم. 20 ," سعيد مؤيد, مطبعة "وعمليات مداخل : المنظمة نظرية . 1988, العراق, بغداد , شفيق . عيادان , افراح 21 البحتاة للعلوم باابال جاامعاة التنظيمي " , مجلاة االداء على الجوهرياة المقادرات ," تاأثير رحيم . 2019 , (1) العدد ،( 27) المجلد ، والتطبيقية . رؤوف , رعد 22 مجلة التصااانيع ", مرونة تعزيز في الجوهرية المقدرات ," دور محمد , ساااليمان , عبدهللا عدنان . 2020, 51, العدد 16 المجلد واالقتصادية , اإلدارية للعلوم تكريت المياجع األجنبية : 1. stevenson, william j., "operations management",(2005) , 8th ed., mc. graw hill . 2. gul, a. akbar, s. and jan, z. (2012), role of capacity development, employee empowerment and promotion on employee retention in the banking sector of pakistan, international journal of academic research in business and social sciences, vol. 2, no. 9. 3. griffin, ricky w. and moorhead, gregory, (2014) , "organizational behavior: managing people and organizations", 11th ed., south western . 4. mullius laurie j. ,2007, management and organizational behaviour 8thed., prentice hall, england . 5. schermerho rn, j.hunt, j.,obson, r., 2000,organizational behavior, mc graw-hill, new york. 6. wilkinson, adrian, (1998) ,empowerment , theory and practice , personal review, vol.27, no.1. 7. jehanzeb,k, & bashir n. (2013), training and development program and its benefits to employee and organization: a conceptual study ,european journal of business and management ,vol.5, no.2. 8. mc shane, steven l.& glinow, mary ann von, 2007, organizational behavior: essentials, tata mc graw-hill publishing company, lnc., new delhi. 9. al-rousan, m.a. (2014), the relationship between the management information system and the administrative empowerment (a field study on the jordanian banking sector, international journal of business, humanities and technology, vol. 4, no. 3. 10. johnson, g. &scholes, k.,(1997)." exploring corporate strategy: text and cases ", 4th edition pearson prentice hall ,new york. 11. heizer ,j. & render ,b.,(2011). " principles of operations management " ,8th edition ,pearson prentice hall, usa. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 100 www.americanjournal.org 12. macmillan, h. & tampoe ,m,(2000)."strategic management ", 1st edition , oxford university press , uk . 13. thompson, j. & strickland, a. j., (2003). "strategic management concepts & cases", mcgraw-hill. 14. marti, jose maria viedma , (2004). "social capital benchmarking", journal of intellectual capital, emerald group publishing limited, vol.(5), no. (3). 15. wang, rui, & zhu, yangjin, (2007). "turbulent mining models and experimentations for firm's core competence", international journal of management science and engineering management, vol. (2), no. (1). 16. cardy, robert l., & gandz, jeffrey, (2007). "be structured in managing talent, don't leave sustainable competitive advantage to change", development and learning in organizations, emerald group publishing limited, vol. (1), no. (3). 17. spendlove, marion, (2007). "competencies for effective leadership in higher education", international journal of education management, emerald publishing limited, vol. (21), no. (5). 18. setiawaty, tetty & tjahjono, gunadi .(2019), “analysis of core competencies and core value needed at furniture department for preparing ready to work graduates: case study at pika vocational school semarang, international journal of innovation, vol.5 , no. 3, pp.732-755 . 19. baker, w.e. and sinkula, j.m. (1999), ‘‘the synergistic effect of market orientation and learning orientation on organizational performance’’, academy of marketing science journal, vol. 27 no. 4. 20. ussahawanitchakit p., (2008), “impacts of organizational learning on innovation orientation and firm efficiency: an empirical assessment of accounting firms in thailand”, international journal of business research, volume 8, number 4. 21. croteau ann-m, solomon s., raymond l., bergeron f., (2001), “organizational and technological infrastructures alignment”, hicss, vol. 8, pp.8049, 34th annual hawaii international conference on system sciences (hicss-34)-volume 8, 2001. 22. dess, gregory. g., mcnamara, gerry, eisner, alan b. and lee seung-hyun, (2019), strategic management: text and cases, 9th edition, mcgraw-hill education, new york. ( 1الملحق رقم ) بام هللا اليحم اليحيم american journal of business management, economics and banking volume 14 july, 2023 p a g e | 101 www.americanjournal.org اخي الماتجي الكييم ... تحية طيبة وبعد . عوامل التي تهد إلى جمع المعلومات التي تخص البحث الموسـو " ـع بي أيديكم الكييمة هذه االسـتبا ة ــيـية الجوهيـية المـقدرات تعزيز في واثيـها الوظيفي التمكي ــتن ــ للمنظـمة / دراســـــة مـيدا ـية في ميكز الماــ التي يقو الباحث بإعدادها." العياو للدراسات العيبية والدولية / الجامعة الماتن يية ــدقها وأما تها ــ التعاون وكلنا ثقة بدقة أجابتكم وصـ ــاكيي لكم حاـ آملي منكم منحنا جز اً م وقتكم الثمي شـ ــوعيتها حول جميع العبارات الواردة فيها الن تائج هذا البحث تعتمد في المقا األول على دقة المعلومات وموضـ جنابكم الكييم . ويود الباحث أن يشيي إلى بعض النقاط : المقدمة م قبل ل • اـم ــيتم التـع ســ ــتخدامها ألرياض البحث الع ــيتم اسـ ــيية تامة مع المعلومات المقدمة وسـ ــم أو لباـ مي فقط وال حاجة لذكي االسـ التوقيع على االستبا ة. اإلجــابــة • عـنــد ( على اإلجابة المناسبة .✓على األسئلة ييجى وضع عالمة ) دقـــة لـــغـــيض • النتائج , تمنى منكم اإلجابة على كافة األسئلة دون تي أي سؤال م أسئلة االستبا ة . الـباـحث على أتم • االستعداد لإلجابة ع أي استفاار أو تااؤل يواجهكم حول أسئلة االستبا ة . استمارة االستبا ة أوال : المعلومات الشخ ية : الجنس : .1 ذكي أ ثى الا : .2 سنة 35إلى 31سنة ف قل 30 سنة 45إلى 41 سنة 40إلى 36 سنة ف كثي 51سنة 50إلى 46 المؤهل العلمي .3 : دبلو عالي بكالوريو دبلو دكتوراه ماجاتيي عدد سنوات .4 الخدمة : ( سنة 15-11( سنوات م )10-5 ( سنوات م )5اقل م ) ( سنة ف كثي 21) ( سنة 20-16م ) american journal of business management, economics and banking volume 14 july, 2023 p a g e | 102 www.americanjournal.org الوظيفي التمكي األسئلة المتعلقة ب ثا ياً : ت العبارة الوظيفي عوامل التمكي موافق بشدة ريي موافق مت كد ريي موافق ريي موافق بشدة يةلعم/ وتعني مشاركة المعلومات وتبادل قل وماتلالمع ةالمشتيك والمفاهيم او اكثي شخ ي بي . المنظمة داخل تاعى ادارة الميكز الى اتاحة المعلومات ال يورية للعاملي 1 الدا مهامهم . تااهم اتاحة المعلومات في ا جاز العمل والوصول الى االهدا 2 . الميسومة تتوفي في الميكز وسائل متنوعة وسهلة للوصول الى المعلومة 3 ) ا تي , مكتبة , بييد الكتيو ي , .... , الخ ( يقو العاملون في الميكز بمشاركة ما يمتلكو ه م معلومات 4 ورش العمل . مع بقية زمالئهم م خالل الندوات و يتمتع العاملون في الميكز بمهارات ات ال عالية تاهل م 5 عملية تبادل المعلومات وتاهم في تاهيل ا جاز المها . محددةتعني ان يكون العمل على شكل مجموعات / االعمل فايو ي لالعام م مهبع مع والعمل تحقيق لغيض بتفاعل البعض دا هاأل . وبةلالمط ىعل الميكز تشجع ادارة 6 دا ا ييقف لعملا دا الا بدال م لفيديا . ً تقو ادارة الميكز د 7 ائما ليتشكب جانالل معالجةل االعمل فايو أاو المختلفة لمواقفا . ىعل االعمل فايو أاع ا يعتمد 8 مبع ه لبعضا ويتعاو ون فيما بينهم لمشكالتا للح . يميل العاملون في الميكز للعمل بيوح الفييق الواحد بدال م 9 العمل بشكل فيدي . تائج العمل الجماعي في الغال تكون اف ل م تائج العمل 10 ب ورة منفيدة . ال جاز اعمالهم في حدود القوا ي لعاملي ل وتعني اعطا قدرا م حيية الت ي واالستقاللية /واالستقاللية الحيية واال ظمة المتاحة وفي ضو رؤية ورسالة المنظمة . يتمتع العاملون بقدر كافي م حيية الت ي الاييع لمعالجة 11 الحاالت الطارئة . العاملون يعلمون حدود القا ون والتعليمات وال يتعدو ها م دون 12 الحاجة الى رقابة عليهم . لد العاملون ت ور كامل ع سياسات واستياتيجيات الميكز 13 الميسومة . التي تحقق االهدا يف ل كل م االدارة و العاملون في الميكز ممارسة اليقابة 14 الذاتية بدل اليقابة التقليدية . تعتمد االدارة اسلو عقد االجتماعات الدورية مع رؤسا االقاا 15 ومع العاملي بوصفها صيغة للتفاعل معهم للتحقق م ان االدا يايي وفقا للخطط الموضوعة . تنمية/ وهي عملية التدري والتطويي تاارمهال لد العاملي تاوالخبي والمعار همكفا ت زيادة ألجل يةلالماتقبو الحالية . تدري لتطويي والميكز إدارة تاعى 16 .العاملي فيها american journal of business management, economics and banking volume 14 july, 2023 p a g e | 103 www.americanjournal.org فيصة االشتيا بالدورات التدريبية متاحة لجميع العاملي 17 بالمنظمة . تهتم ادارة الميكز باكتاا العاملي فيها لمعلومات ومهارات 18 جديدة م خالل التدري . يير العاملون في االشتيا بالدورات التدريبية لغيض تطويي 19 قدراتهم ومهاراتهم الشخ ية . زيادةالتحفيز / افعود بذل المزيد م العطا لغيض حو العاملي دا هاأل تحقيق منظمةلل والغايات . تهتم االدارة بتحفيز عامليها على تحمل الماؤولية في العمل . 20 الجديدة فكارالاادارة الميكز تشجع 21 قةلالمتع دا اال بتحاي . ادارة تعمل 22 ىعلالميكز لدافعيةا اايجاد د ل العاملي فيها .وتحفيزهم الدا مها عملهم بنجاح كاف ةم يتلقى العاملون 23 اديةم عنويةم أاو ندماع عمالب يقومون خارج اعمالهم اليوتينية بداعيةا . بالمقدرات الجوهيية اً : األسئلة المتعلقة لثثا ت العبارة المقدرات الجوهيية أبعاد موافق بشدة ريي موافق مت كد ريي موافق ريي موافق بشدة هي /التنظيمية الموارد اإلمكا يات و الموجودات كل العملياتو البشيية ت المهاراو التنظيمية التنظيمية والخ ائص الموجودة داخل المنظمة . والمعيفة والمعلومات متلكي 1 اردموالالميكز ة الكافية التي تنظيميال ا جاز م تمكنه مهامه بكفا ة . قدراتهاوتعزيز تنظيم الى ادارة الميكز تاعي 2 وريي المادية . التنافاي موقعها على للحفاظ المادية ادارة الميكزتقو 3 المتاحة لديها التنظيميةبتاخيي الموارد الميسومة . لتحقيق االهدا معالجة النقص الحاصل في القدرات تاعى ادارة الميكز الى 4 المادية وريي المادية دون الت ثيي على ماتو االدا . مشاركةتعني /اليؤيا المشتيكة والاياسات والغايات األهدا في المنظمة ظي وجهة مع العاملي والتوقعات واألولويات . . لجميع المنتابي واضحة ورسالته الميكز رؤية 5 الميكزيتم مشاركة رؤية 6 فيما يخص الوصول الى االهدا كافة المنتابي . مع رؤسا االقاا العلمية ومع يتم اخذ رأي رؤسا االقاا العلمية والعاملي فيما يخص رسم 7 سياسات الميكز البحثية . تتمتع استياتيجية الميكز بالشمول والميو ة وقابلية التعديل 8 حا المتغييات والظيو . يشيي /رأ المال البشيي بي االجتماعية التفاعالت إلى البشيي المال رأ زيادة الى المنظمات وتاعى والعاملي االدارة االستفادة و التفاهم في هما يا شي كل م . أهدافهم وتحقيق الموارد البشيية فيها إ تاجية تحاي التي يتملكها . تعتبي الموارد البشيية في الميكز احد قاط القوة 9 م خالل تطويي مواردها البشيية الىتاعى ادارة الميكز 10 التدري والمشاركة في الندوات والورش التعليمية . تتعامل ادارة الميكز مع رأ المال البشيي الموجود فيه 11 لديها . الموجودة رد ا موالاهم باعتبارهم م تاعى ادارة الميكز الى تعزيز رأ المال البشيي فيه م خالل 12 التعيينات الجديدة أو تشجيع قل المنتابي اليه م بقية التشكيالت . american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 114 www.americanjournal.org main aspects of the tax potential and digital economy of the country gafurova umida fatikhovna phd, associate professor of tashkent financial institute a b s t r a c t k e y w o r d s the article describes the essence of tax potential and the digital economy in modern conditions. an analysis of the tax potential and digital services in the global economy was carried out. the results of scientific research in the field of formation of the concept of tax potential taking into account the digital economy are reflected. the main characteristics of digital services are shown in the context of the ongoing pandemic and military special operations in ukraine. important conclusions have been drawn regarding the problems of tax potential and the digital economy. tax potential, digital economy, taxation, digital services, tax reforms. introduction the state of socio-economic development of each country in modern conditions largely depends on strengthening tax potential and on the development of the digital economy. under these conditions, tax revenues constitute the bulk of countries' budget revenues, which can serve to strengthen the digital economy. therefore, many governments pay special attention to the effective use of tax potential and the development of digital technologies. in this process, of course, it is important to analyze situations related to tax potential and the state of development of digital technologies in countries around the world. in the context of observing various strains of the pandemic in the world, states around the world are paying special attention to ensuring tax collection and increasing tax potential in this area. it should be noted that the processes of socio-economic development of countries and its regional structures depend on increasing tax potential and strengthening the digital economy. the emergence and rapid spread of the digital economy represent one of the most important trends in global development in recent decades. the digital economy and related phenomena, among which digitalization stands out (the use of digital data and technologies, leading to the emergence of new or transformation of existing activities [oecd, 2019a, p. 7]), are having an increasing impact on the world economy and individual national economies and people's lives. in this regard, topics related to tax potential and the digital economy are considered relevant. to solve this problem, we will first analyze issues related to the analysis of the works of scientists on the formation of the conceptual apparatus of tax potential and the digital economy. the concept of tax potential and the digital economy has been the object of study by many international organizations and scientists. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 115 www.americanjournal.org table 1. some definitions of the concept of “tax potential” and “digital economy”1 authors definitions of the concept of “digital economy” authors definitions of the concept of “tax potential” don tapscott the digital economy isthe economy of the era of network intelligence, which is based on “information of all kinds in digital format...transmitted using network technologies” [tapscott, 2015, p.16] voskanyan e. s. tax potential is a derivative of economic potential, which is an instrument that aggregates exclusively tax revenues at different levels. [1] unctad digital economy is the application of digital internet technologies in the production of goods and services[unctad, 2017b,c. 156] yutkina t. f. tax potential is the total revenue of producers of goods, works and services minus the corresponding production and distribution costs. [2] imf digital economy in the narrow sense,this is a set of online platforms, as well as the types of activities possible thanks to such platforms; in a broad sense, the digital economy is all types of activities that rely on the use of digital data; in developed economies, the digital economy covers the entire economy[imf,2018, p.7] matrusov n. d. tax potential is the ability of the tax system to effectively implement financial resources. [3] "group of twenty" the digital economy is various types of economic activities in which the use of digital information and knowledge plays the role of a key factor of production, modern information networks are becoming an important area of activity, and the effective use of ict acts as an important driving force for increasing productivity and optimizing the structure of the economy[g20, 2016] i. a. mayburov tax potential is an economic category that describes the set of financial relations around the transformation of the tax base into tax revenues, guided by parameters based on the balance of the fiscal and regulatory functions of the tax system and the specific conditions of the economy [4, p. 418-419] as can be seen from the table, there are different concepts of the digital economy and tax potential. by connecting these two concepts, we can characterize the development of countries in modern conditions. according to watanabe, the limited potential of generally accepted economic indicators, among which the main one is the gross national product, in the process of assessing the development of the digital economy with the decline in growth rates of the world's leading economies recorded in recent years and the new “productivity paradox” [watanabe et al., 2018, c. 226]. it should be noted that the lack of an established approach leads to significant discrepancies in the estimates given. according to zhang chen, the digital economy in china creates from 6 to 30% of the country’s gdp [zhang, chen, 2019, p.4] as shown in the sources, the tax potential has the followingfeatures: firstly, it is of a reproductive nature, secondly, it reflects not the actual, but the potentially achievable level of tax revenue, since the objects of taxation and the tax base can be transformed; thirdly, it is mediated by the institutional 1table compiledby the authors based on the indicated sources. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 116 www.americanjournal.org environment of the economic sphere. [4, p. 418-419] the role of tax potential in stimulating the efficiency of innovation in the digital economy is shown in the works of olga maksimchuk, elena maznitsa and larisa chizho [5] thus, our conclusion is that tax potential characterizes the financial ability to increase tax revenues into the budget system, taking into account the existing tax base, without a negative impact on economic entities. when assessing the development of the digital economy, various methodologies are used, taking into account tools developed to measure specific parameters of the development of the digital economy, ratings based entirely or largely on statistical data of a technical nature, as well as ratings that represent examples of the application of a mixed approach, i.e. combining a certain amount of available statistical data with estimated indicators. if the tools (oecd toolkit for measuring the digital economy; oecd going digital toolkit) represent a valuable source of basic information and recommendations for planning national policies in the field of digital development and do not aim to rank countries in the world by level of digital development, then the ratings (ict development index ; digital adoption index) according to the oecd definition, due to the nature of the data used, are more suitable for assessing the state of a country’s digital infrastructure [oecd, 2017, p. 28], and (networked readiness index; eu i-desi; imd world digital competitiveness ranking) for analysis the state of the legal and business environment to the extent that it promotes or inhibits the development of the digital economy, as well as the impact of digital technologies on the life of society. considering this methodology this article uses methods such as verbal interpretation, statistical observation, induction and deduction, scientific generalization of the scientific and theoretical foundations for increasing tax potential and strengthening the digital economy in the world, including in uzbekistan. analysis and results the crisis caused by the covid-19 pandemic and the ongoing military operations in ukraine requires governments around the world to implement tax reforms to strengthen the ability of states to invest in social protection. to strengthen tax capacity, corporate taxation is important, which comes to the forefront in national and intergovernmental reforms. as noted by international sources, although corporate profits are growing, the company's contribution to state budgets is becoming proportionately smaller and smaller. the main reasons for this include reductions in corporate income tax rates around the world in order to attract foreign direct investment, as well as aggressive tax planning. these processes occur taking into account the fact that profits are transferred from countries with a high tax rate to countries with a lower tax rate. estimates also show that 40% of foreign direct investment is motivated by the transfer of profits rather than genuine economic activities. today, many multinational corporations are becoming less and less dependent on labor and capital, and are increasingly focused on extracting cash from intangible assets such as software, algorithms and brands. therefore, we must take into account the impact of the digital economy on tax potential, since companies more oriented towards the digital economy pay significantly less taxes than similar companies operating under normal conditions, as evidenced by data presented by the european union commission. among the factors influencing tax potential, an important feature of financial factors is that they american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 117 www.americanjournal.org quickly influence the amount of tax potential. among them are the content of fiscal policy and its directions (distribution of expenses, tax rates, benefits). among financial factors, monetary policy is one of the most rapidly influencing factors, and in turn stimulates production and affects the emergence of new tax potentials. according to the study's analysis, the figures show that the us losses amounted to $188.8 billion per year, and in china $66.8 billion, in japan $46.8 billion, in india $41.2 billion, france $19.8 billion and etc. sanctions imposed by the united states against russia due to a special operation in ukraine will not only accelerate inflation in the united states, but can also reduce tax revenues of american regional budgets and lead to increased business taxes. the tax rate for oil workers in utah is 5 percent of the price of oil if market quotes exceed $13 per barrel, and for natural gas 5 percent if the gas costs above $1.5 per thousand cubic feet. “inflation continues to rise, which has contradictory consequences: sales taxes are rising, but consumer sentiment is falling. in addition, increased dependence on local fuel due to the conflict between ukraine and russia may lead to an increase in mining taxes in the coming months.” in addition to increasing tax revenues, fair corporate tax rules should also ensure healthy profit levels are maintained where value is created, i.e. where the workers are. aggressive tax planning means that profits are siphoned out of otherwise healthy subsidiaries and redirected to tax havens through complex mechanisms. that being said, corporate tax reform should be carefully considered by policymakers because of the undesirable consequences, especially the regressive effects of shifting the tax burden from companies to workers and consumers, and possible implications for employment. based on this, transfer pricing rules are one of the reasons why taxes are too low for digital firms. countries are introducing taxes on digital services, which are often seen as an easy solution to quickly raise revenue. importantly, governments are relying on these unilateral measures to respond to public calls for fairer taxation of digital firms. at the same time, digital services taxes come with risks, especially regressive implications and elements. countries are introducing taxes on digital services, which are often seen as an easy solution to quickly raise revenue. importantly, governments are relying on these unilateral measures to respond to public calls for fairer taxation of digital firms. at the same time, digital services taxes come with risks, especially regressive implications and trade tensions. the principles of a global excess profits tax are also considered at the oecd level. while the oecd's pillar i negotiations initially aimed to develop a new tax that would apply exclusively to digital activities, a recent proposal by the us administration would significantly simplify the scope by focusing on the profitability of large multinational corporations. the european union also plays a key role in this area. in may 2020, the european commission announced that it would study the possibility of introducing an additional tax on companies making "huge profits" from the common market. there are the following initiatives to reform taxation: unitary taxation in which global profits corporations are distributed between countries according to a certain formula. involves a deep reform of oecd transfer pricing rules. the tax fairness network estimates the proposal would generate $100 billion annually. combined with a minimum tax rate of 25%, annual revenue growth could reach up to $950 billion. the digital services tax provides a turnover tax for large digital companies. 4-5 billion us dollars. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 118 www.americanjournal.org the minimum tax rate provides the right to levy tax on profits transferred abroad or on which tax has been paid at a rate lower than the agreed minimum rate. 580-650 billion us dollars annually at a rate of 25%. 380-500 billion us dollars per year at a rate of 21%. there are taxes on digital services, which can be roughly shown in the following table. тable 2. existing taxes on digital services in countries around the world2 a country service tax rate tax revenues austria 5% for advertising indefined canada 3% for advertising and digital intermediary services 415-925 million us dollars per year czech 5% for advertising, selling user data 183 million euros per year france 3% for online advertising, digital mediation €358 million in 2021 hungary 7.5% indefined india 2% for non-resident e-commerce operators 73 million us dollars in 2017-2018 italy 3% for online advertising, digital interfaces, user data 700 million euros in 2020 kenya 1.50% for online markets indefined poland 1.5% for audiovisual media services and advertising 3.2–4.3 million euros annually spain 3% for online advertising, online advertising sales, user data sales 968 million euros per year tunisia 3% for the sale of computer applications and digital services n/a great britain 2% £280-515 per year zaimbabwe 5% for digital and e-commerce indefined total 4-5 billion us dollars as the data in the table shows, the total revenue from taxes for digital services amounted to4-5 billion us dollars. in the main directions of the tax and customs policy of uzbekistan for 2022, rates for the main types of taxes have been preserved, work has continued to abolish ineffective tax and customs benefits, modern models of taxation of subsoil users are being introduced, and the property tax rate for legal entities is being reduced from 2% to 1.5 %, indexation of the property tax rate for individuals by 1.1 times, indexation of the tax rate for the use of water resources (except for the rates established for the use of water for irrigation of agricultural land and fish breeding) by 1.1 times, a coefficient is applied 1.05 to the tax rate for the volume of water used for irrigating agricultural land and breeding (growing) fish, the procedure for transferring losses into the future for ten years when calculating income tax is retained with the lifting of the restriction on the total amount of transferred losses, the maximum depreciation rates are increasing deductions attributed to expenses for tax purposes. 2fair corporate taxation is a key requirement of the ituc. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 119 www.americanjournal.org table 3. limit rates of depreciation deductions attributable to expenses for tax purposes no. expenses for tax purposes maximum rates of depreciation deductions, in% 1 for buildings from 3 to 5 2 for buildings from 5 to 10 3 for transmission devices, power machines and equipment from 8 to 15 4 for working machines and equipment from 15 to 20 5 for computers and information processing equipment from 20 to 40 6 increasing the amount of investment deduction by the amount of funds allocated for 7 purchase of new technological equipment from 10 to 20 8 expansion of production in the form of new construction from 5 to 10 the growth of state budget revenues in 2022 is predicted with a slight increase in the total tax burden. fig.1. tax burden and state budget revenues in 2020–2022 in uzbekistan state budget revenues for 2022 are projected at 200.0 trillion soums, or 23.8% of gdp. table 4. state budget revenues by main sources types of taxes share in total income, % direct taxes 34.3 indirect taxes 36.6 resource taxes and property tax 12.9 other income 16.2 total 100 as can be seen from the data in table 2, direct taxes for 2022 are projected at the level of 68,511.1 billion soums, which will amount to 34.3% or 8.2% of gdp of the total state budget revenues. when forecasting direct taxes for 2022, the rate of economic growth, the commissioning of new production facilities and wage growth were taken into account. indirect taxes are projected at the level of 73,164.9 billion soums, which is 36.6% of total state budget revenues or 8.7% of gdp. the main american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 120 www.americanjournal.org revenues, i.e. 72.9% of indirect taxes, will be provided through vat. the main share in revenues from resource taxes comes from the tax for the use of subsoil 17,352.9 billion soums. to improve the tax potential will be influenced by an increase in volumes and prices for certain types of minerals, as well as changes in the exchange rate and improvement of tax administration for non-metallic minerals. these conditions presuppose the need to implement decentralized tax processes aimed at coordinating the interests of all participants in tax relations. to improve tax potential, it is very important to use proactive budgeting, which expands the opportunities for citizens to participate in the distribution of part of local budgets to resolve issues that concern them. from january 1, 2022, in all districts (cities) of the republic, a procedure has been introduced to allocate 5 percent of the approved total expenses of the relevant budgets to finance activities formed on the basis of public opinion.[14] conclusions and offers based on the above scientific and theoretical views on the importance of tax potential and the digital economy, the following conclusions were formed: firstly, tax potential and the digital economy are important aspects of the development of countries in the world in modern conditions. secondly, tax potential determines the future of countries, since the formation of the revenue side of state budgets is very important. this indicator should take into account the degree of development of the digital economy. thirdly, countries around the world, taking into account the importance of tax potential and the digital economy in the development of the country, are taking initiatives to reform taxation. references 1. e. s. voskanyan: (2014) development and promotion of subfederal tax potential. dissertation: 08.00.10 / voskanyan emma sergeevna. – eagle. – 154 p. 2. yutkina, t. f. (2001) taxes and taxation: textbook by t. f. yutkina. – second edition, corrected and enlarged – m.: infra-m, – 576 p. 3. matrusov n. d. (2007) regional forecasting and regional development in russia / n. d. matrusov. -moscow: science, – 219 p. 4. fiscal federalism. (2017) problems and prospects: monograph for master’s students “finance and credit” / i.a. mayburov, yu.a. b. ivanov, k. a. bannova [and others]; edited by i. a. maiburov, yu. b. ivanov. — moscow: unity-dana, — 415 p. 5.olga maksimchuk, elena maznitsa and larisa chizho (2021) the role of tax potential in stimulating the effectiveness of innovation in the digital economy. 6. tapscott d. (2015) the digital economy, anniversary edition: rethinking promise and peril in the age of networked intelligence. new york: mcgraw-hill. united nations conference of trade and development (unctad) (2017a) 7. americans for tax fairness (2020), testimony presented to the house ways and means committee on the vanishing corporate income tax. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 33 | p a g e the need and economic basis for attracting foreign direct investment in the territory's economy yusupjanova nargiza utkirovna tashkent architectural construction university associate professor a b s t r a c t k e y w o r d s the article describes the concept of investments and foreign investments. the advantages of direct import of foreign investments for the host region are shown. the impact of foreign direct and portfolio investment on the region’s economy has been studied. decisive factors have been identified for making positive decisions about foreign investment in the region. investments, foreign investments, direct foreign investments, region economy, investor, investiture resources introduction the current stage of the development of the economy of uzbekistan is characterized by the fact that the main part of the functions of active development of regions and management of economic processes are taking place at the level of regions. in turn, in the regions, investigation is calling for the organization of processes and the improvement of the principles of its operation. the importance of research on the problems of regional coordination of investment activities is that the management of investments is an important lever for the structural restructuring of the production and social potential of uzbekistan, improving its efficiency, maintaining practical economic policy. the most important task of the territorial economy in this regard at present is to study, substantiate and coordinate new methods and forms of regional regulation of investment activities on the basis of suitable objective laws of market economy. investing resources in the area's economy is a complex process, as it requires strategic mobilization of all potentially available investiture resource opportunities, including foreign investments. foreign capital brings with it the development of the territory's economy, including the growth of employment in it, high wages and an increase in labor productivity, in addition, a large economic effect in the manifestations of the development and modernization of the real sector. the strategic plan for the use of foreign capital investments – eliminates economic backwardness in a number of important sectors of the economy and is one of the effective methods of integration of the national economy into the world economy. in the re – editing of the law "on investment activities", adopted on december 24, 1998, the following definition is given to investment: "material and intangible benefits and rights to them, which are included in the objects of investment and economic and other activities". american journal of business management, economics and banking volume 19 december, 2023 p a g e | 34 www.americanjournal.org article 3 of the law of the republic of uzbekistan "on foreign investments"recognizes that "foreign investors are mainly foreign investments in the territory of the republic of uzbekistan, including rights to intellectual property, all kinds of material and intangible assets that they add to entrepreneurial activity and other objects of activity that are not prohibited by law in order to obtain income (profit)." in our opinion, foreign investments are all property, financial, intellectual assets that foreign investors mobilize in entrepreneurial and other spheres of activity of a completely different state economy in order to obtain a high level of income, achieve effect. foreign investments are based on an external source of financing, in contrast to domestic investments. they are attracted to the national economy from abroad, encouraged their arrival. "in general, foreign direct investments and high-tech recruitment, management skills make certain changes to the production methods of national firms. in terms of modernizing the economy, it is necessary to stimulate the flow of foreign direct investment, without which high technologies are not carried out. the acquisition of technology itself is expensive and often impossible for most developing countries and countries of transition economies. foreign direct investments can increase the set of high technologies available in domestic firms. it is also important to adapt new technologies in the local environment." an analytical approach to the definition of "foreign investments" allows this concept to be characterized in the following interpretation: foreign investments are foreign capital of various forms and manifestations, both short-term and long-term, which are withdrawn from one country in order to achieve a positive socio-economic effect and are included in the activities of economic subects on its territory. the economic scientific and educational literature lists most classifications of foreign investment. in our eyes, it is necessary to pay more attention to the classification of foreign investments by the following signs: • investision depending on the form of ownership of resources; • depending on the object of investment of foreign investments. in this case, first of all, it is necessary to clearly consider the difference between foreign investments in the form of private and public property. applies to public investments (in international practice-official) : • loan issued on condition of non-return by international financial institutions and foreign government, state organizations, subsidies and loans (including preferential); • international monetary fund (imf), world bank, etc. moving these funds internationally forms intergovernmental agreements. diagonal relationships can form when a consortium of private banks makes investments in states; • loans of foreign commercial banks guaranteed at the state level; • subsidized and preferential loans, taking place from official sources "official support for development" on a bilateral or multilateral basis, are directed, as usual, from the industrialized countries of the world to the countries of the transition economy and developing countries mainly for the non-productive sphere; • private (non – state) investments-private firms, companies or citizens of one country give to other state entities respectively. in this case, loans from commercial banks, manufacturers, exporters, various intermediaries are not duly guaranteed at the state level. investision relations are highly complex and diverse, as relations between private individuals and most inter-state relations are closely related. it is impossible to analyze the development trends of american journal of business management, economics and banking volume 19 december, 2023 p a g e | 35 www.americanjournal.org foreign investiture activities without identifying the objects of placing foreign investments. forms of foreign investment are classified as follows: • direct foreign investment – direct capital investment in industrial, commercial, service enterprises; • portfolio (or financial) investment-foreign capital placed in financial markets, national states and private securities markets; • other types of foreign investments-international loans provided by foreign countries, loans from international financial organizations and loan capital debts of trade and industrial corporations, banks and other financial institutions, trade loans, bank deposits. as a classic form of implementation of foreign investments, transnational companies with full control of foreign branches and subsidiary companies can be cited. according to the conclusions of foreign researchers, more than 100 thousand branch complexes of more than 37 thousand transnational companies covered almost the entire planet. it is a kind of economically stable and dynamic economic system of planetary type, that is, concentrated in one third of planetary production funds, produces about 40% of the total planetary gross product, carries out more than half of the foreign trade turnover, more than 80% of the trade in new technologies and controls more than 90% of capital production. one common method of foreign investment is the establishment of joint ventures and the conclusion of contracts between companies. the creation of joint ventures gives partners opportunities to identify risks in investment, achieve savings in the scale of production, use of partner sales networks, etc. but the participation of foreign investors with their contributions does not give them the right to complete management of the project and the enterprise. foreign direct investments increase the value of the authorized capital of the enterprise and create changes in the ownership structure. foreign direct investments consist of capital resources and intangible assets. first of all, one should pay attention to the following aspects of them: they should be equity in the form of shares, a foreign investor should have purchased a share of the firm located in this country (not less than 10% of the authorized capital); have a reinvestable income; debts within the branch should be acquired between the general companies and its branches. important elements of foreign direct investment are intangible assets, introduced technologies, trademarks (brands), management experience, etc. it is intangible assets that make it possible to distinguish one company or another. direct and portfolio investments are of different nature and have different effects on the economy of the region that receives it. the penetration of foreign direct investment for the receiving area has the following advantages: • acceleration of economic and scientific and technical progress; • having a sustainable funding source; • renovation and modernization of production funds; • penetration of technologies, management skills, trademarks, patents and licenses; • diversification of exports; • the emergence of advantages for skilled labor in industries with a high share of added value; • expansion of relations with foreign markets; • increased competitiveness of the economy of the host region; • training of personnel who meet the requirements of a market economy. in addition to foreign direct investments, portfolio investments also have different effects on the economy of the receiving area. this can be observed in their following comparative description: • foreign direct investments give investors control rights, while portfolio investments do not; american journal of business management, economics and banking volume 19 december, 2023 p a g e | 36 www.americanjournal.org • if direct investments allow the company to have only 10 percent or more share of authorized capital, the portfolio represents the right to carry out an investment relationship with investments having less than 10 percent share; • direct investments are long-term investments, while portfolio investments are short-term; • at the same time, the peculiarity of the development trends of the world capital market is that most institutional investors hold long-term assets in foreign companies without the right to control, in this respect, the difference between direct and portfolio investments is almost imperceptible.. if the first is an impetus for investors to expand the possibilities of transferring and introducing technologies into the domestic market, the second will provoke the development of the domestic market of the host country. portfolio investments at first appear to have a somewhat strong macroeconomic effect in determining financial sector liquidity and valuation dynamics in assets. on the contrary, direct investments at the microeconomic level will help to change the production structure in the resistant region: o the portfolio has a more destabilizing description, although its final result depends on the policies of the subsidiary companies when investments are compared directly to investments. but direct investments can increase the balance of payments deficit of the resipient region, such as portfolio investments, when the share in profits is mostly withdrawn abroad. this assumes an increase in foreign exchange risks in the balancing of assets and liabilities in various currencies, such as direct investments, portfolio investments and bank debts. thus, although material assets remain in receiving countries, a transnational company can transfer its financial resources to other countries; • relatively short-term investments for foreign portfolio capitals are typical, although they have higher liquidity than direct investments. real put portfolio investments leave the resistant region after an average of 4-5 years, while direct investments leave after 8 years; o in direct investments, intangible assets are also included, which are not typical for portfolio investments. investision the main participants in the processes are foreign investors. the general definition of a foreign investor includes a sufficiently wide range of subjects, covering their legal cases that differ from each other. the current law of the republic of uzbekistan "on foreign investments"distinguishes the following categories of entities as foreign investors:· • foreign legal entities; • foreign organizations that are not legal entities; • foreign individuals, that is, permanent residents of a foreign country, foreign citizens and stateless persons; • persons who live outside the republic of uzbekistan but are citizens of the same country; • international organizations; • foreign countries. as a conclusion to the research of foreign investments, it should be said that today no general concept has been developed that describes in detail the process of foreign investments. for an investor, first of all, it is important to choose the right region for investments. in the context of economic growth in uzbekistan, the most promising method in this regard is "going after the investor", this method is based on the analysis of the benefits given to investors who have invested their capital in uzbekistan and are operating today. this method, as an analysis of the complex conditions of investment created american journal of business management, economics and banking volume 19 december, 2023 p a g e | 37 www.americanjournal.org in uzbekistan, provides them with information necessary and sufficient for making management decisions in investment. the investor will be able to draw conclusions about risk factors, depending on the behavior of several investors who have made another investment, taking into account all the risk factors in full. as long as it is the regions that are considered consumers of investiture funds, the following are the decisive factors when making positive decisions by the investor about making specific foreign investments in the territory of the country: capital policy on the relations of the local government of the resistant area to foreign investments; geographical position of investment receiving areas; savings in transportation costs and customs duties; stability of the amount of profit at the expense of various games in individual sectors, countries, territories, scientific and technical policies of the government and trade policy regimes, currency, tax legislation, economic conjuncture; -taking into account the level of socio-economic development of the regions receiving investments; striving to obtain a higher profit norm due to the use of differences in production costs at the national level; – distribution and redistribution of the production of goods and services between foreign branches, depending on the state of economic conjuncture of individual states and territories; the introduction of technical, technological, managerial innovations, trademarks and others. from the above, it can be concluded that foreign investments play an important role in the sustainable development of the investment process in uzbekistan and its territories. legal norms in the legislation of uzbekistan are aimed at regulating foreign investments and the activities of foreign investors, but at the same time they also have a number of problems, misunderstandings that arise in the processes of implementation of investment projects. this can be explained by the fact that the processes of structural reform in this system are continuing consistently. the main concept in the categorization of forms of foreign investment is considered portfolio and direct foreign investments, each of which has its own impact on the economic development of countries. thus, the territory is considered a kind of important structural stage of attracting foreign capital for the state and enterprises, creating the need to choose the most effective forms of investment. references 1.law of the republic of uzbekistan "on investment activities", 1998. 24 dec. // taxes and customs messages. no. 4, 1999. 3 p.. 2.a.v.vahobov, sh.x.khajibakiev, n.g.mo foreign investment. tutorial. "finance".t.: 2010. 10-b. 3.karimov i.o. ways to improve the efficiency of investment projects in construction. acadenicia an international multidisciplinary research journal issn 2249-7137 vol.10 issue 5, may 2020. 4.karimov i.o. attracting investment projects to the construction industry and improving their efficiency. saarj journal on banking & insurance research 10 (1), 47-53, 2021, south asian academic research journals. 5.иномжон ортикбаевич каримов. қурилиш корхоналарида инвестицияларни бошқариш самарадорлигини аниқлашда вақт омилининг ўрни ва аҳамияти. o'zbekistonda fanlararo innovatsiyalar va ilmiy tadqiqotlar jurnali.№2. 2023/11/21 https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://bestpublication.org/index.php/ozf/article/download/8275/8500 https://bestpublication.org/index.php/ozf/article/download/8275/8500 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 38 www.americanjournal.org 6.m ya isokhuzhaeva, aa mirisev, io karimov, so ibragimov. journal of positive school psychology. legal factors affecting the efficiency of state management of the digital economy. № 6/72022/10/3 7.www.mf.uz – website of the ministry of finance of the republic of uzbekistan. 8.www.stat.uz – website of the state statistics office of the republic of uzbekistan. http://mail.journalppw.com/index.php/jpsp/article/view/12559 http://www.mf.uz/ http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 29 www.americanjournal.org objectives of economic development in the conditions of globalization rakhmonov djobir amonovich foreign enterprise epsilon ltd. development company uzbekistan tashkent rahmanovdjabir@gmail.com, +998973145888 a b s t r a c t k e y w o r d s the rise in the economy of many countries indicates that countries are developing development programs consisting of many components ¬, in which at first glance everything is justified, but the desired goal is not always achieved during their implementation. in this regard, there is a need to develop the foundations of a development strategy. a strategy is a plan of action to achieve a desired goal. a strategy becomes necessary when there are not enough available resources to achieve the goal. in the conditions of their limitation, its main task is the efficient use of resources to achieve the main goal. strategy, economic mechanism, development factors, competitiveness, complexity, productive knowledge, integration, synergetic effect, small economy, economic instruments, financial instruments. introduction the development of a strategy begins with the definition of a goal and objectives to achieve it. for developing countries, most often this is sustainable development in order to improve the well-being of the population. one of them is the specificity of the tasks set and the definition of all criteria for achieving the goals. the next stage in the development of the strategy is the definition of specific tasks for its achievement. specific tasks that need to be solved are determined, in turn, by development factors. the economic development of the strategy can be represented as follows: development factors competitiveness and increase in efficient products, production knowledge; financial instruments: government support, financial institutions; economic instruments: program development, planned financing; and achievement criteria: gdp per person, competitive products. materials and methods during the years of independence in the republic of uzbekistan, in accordance with the law "on economic space" is the creation of a common market for goods, services, capital and labor. in order to radically improve the quality, the national program also provided for the training of personnel with modern requirements: the most important areas for further improvement of the system, advanced training of management personnel, technological progress and innovation, a radical update of qualification requirements, introduction of modern highly efficient innovative technologies, advanced foreign experience. mailto:rahmanovdjabir@gmail.com american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 30 www.americanjournal.org discussion in our opinion, the importance of modern factors in the development of the economies of developing countries in the context of globalization is the first key point that leads to the development and implementation of many strategies. in the context of globalization, the formation of a global market for goods, capital, labor, technology and international production is taking place. those countries that understand the essence of the new reality and integrate into the new economy find their goal and achieve success. but countries that did not understand the essence of the new laws do not have time to rebuild their economy in accordance with them, do not find their place in the new reality and lag behind in their development. the state considers it important for the development of sectors of the economy, this is the creation of jobs, and in the context of globalization, all this is ensured only if the competitiveness of products is achieved. each company begins to compete with other producers not only in the external, but also in the domestic market. ensuring the competitiveness of the national economy is an extremely difficult task, and not only underdeveloped, but also many developed countries fail to solve it successfully. the essence of the problem lies in the fact that most countries fail to create an effective system to support and ensure the competitiveness of the national economy. ensuring the competitiveness of the economy contributes to the formation of an integral national innovation system. it involves the creation of infrastructure that supports the system of scientific and innovation funds. as practice shows, innovative products can be created both as a result of the activities of scientists and qualified engineers, and as a result of the activities of entrepreneurs and businessmen. at the same time, the state should actively support their activities in all possible ways. so, according to the world bank, total exports exceeded imports in general in mutual trade and their approach to world prices, you can also see several factors, such as: high economic compatibility of production potential, self-sufficiency and mutual complementarity of national economies. flexible organization mechanism conclusions thus, goals such as selling products, ensuring the sustainability and profitability of the business, creating new jobs all this is possible provided that our product or service is more competitive than the products and services of other manufacturers. ensuring the competitiveness of the national economy is an extremely difficult task, and not only underdeveloped, but also many developed countries fail to solve it successfully. the essence of the problem lies in the fact that most countries fail to create an effective system to support and ensure the competitiveness of the national economy. references 1.trippl m., maier g., star scientists as drivers of the development of regions, innovation, growth and competitiveness dynamic regions in the knowledge-based world economy. berlin; heidelberg: springer, 2011. p. 113-115. 2.hidalgo ca, hausmann r. the building blocks of economic complexity. 2009. 3.the case for stem education as a national priority. http://www.cfr.org/united-states/useducation-reform-national-security/ american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 31 www.americanjournal.org p27618 4.federal science, technology, engineering and mathematics (stem) education 5-year strategic plan. http://www.whitehouse.gov/stem_stratplan_2013 5. bekbolotova s. comparative analysis of the integration economic communities of the eu, asean and eaeu, turan university, 2015. isbn 978-601-214-278-5 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 20 www.americanjournal.org the role of the service sector in the development of the country urunbaeva yulduz pirnazarovna associate professor of samarkand institute of economics and service a b s t r a c t k e y w o r d s the content and essence of the service sector in the article and the socio-economic significance of its rapid development, employment of the population in the service sectors an analysis of their structural structures is presented. a comparative analysis of certain data with the regions of uzbekistan and samarkand was made. national economy, post-industrial society, economic system, material production, service, paid services, unpaid services, competition, digital economy, innovation, modernization, population standard of living, quality of life, pandemic, demand, consumption, population fund,salary, population income. introduction improving the well-being of living is at the center of all the problems of any economic system, and all attempts in the field of socio-economic development are ultimately aimed at solving this general attitude. for this reason, issues regarding social welfare and the standard of living have attracted the attention of many economists since ancient times. analysis of thematic literature a. in the formation of the theory of social welfare and the standard of living of the population. smith, w.m.jerebin, a.n.romanov, n.prominent economists such as a n.a.gorelov1 have made outstanding contributions of their own. without their theoretical approaches and theoretical views on social welfare and achievement, it is difficult to create a modern system of scientific views on the well-being and standard of living of the population. research methodology in the course of the research, methods of logical analysis based on information were used. in this, techniques and approaches of cognitive theory such as induction and deduction, space and time, analysis, and synthesis have also been used. 1 smith a. research on the nature and causes of the wealth of nations. / translated from english by .m.mayburda.m., 1993. p.572.; zherebin v.m., romanov a.n.the standard of living of the population. m.: unity-dana, 002.p. 224.; gorelov n.a. et al. income policy and quality of life of the population: textbook. st. petersburg: peter, 2003. from 653. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 21 www.americanjournal.org analysis and results as a result of our theoretical research in this area, the development of mankind in solving problems related to increasing the standard of living of the population has acquired three important features of the current stage, namely: first – the intensification of globalization processes. the increasing integration of national economies, and the formation of goods, services, and labor markets on a global scale have a huge impact on the formation of the standard of living and quality of the population of each country. secondly-the escalation of environmental problems. as a result of this, the need to comply with the concept of sustainable development, which ensures national and international environmental security, and equality of interests of current and future generations, in solving the problems of resource use in order to rapidly develop the economy. third-it should be taken into account that the model of a socially oriented market economy is taking shape, the principles of social justice are gaining momentum in the distribution, and it is rational social policy that is becoming the main factor in economic development. it assumes the support of the population of the state of underprivileged strata and socially vulnerable groups (people with disabilities, youth, women) and social protection from market stigma. in turn, the rise in the standard of living of large segments of the population increases its labor and social activity, and the role and importance of the human factor in production become more and more intense, increasing the activity of participation in the processes of development of the country's economy. the most important thing is that the need for services differs sharply from the need for material services in its essence and its importance in the development of a person as a person. based on modernizing and re-equipping the service sector networks, improving the quality of services based on providing them with qualified personnel, expanding the range of services based on diversification of this industry, producing new types of services, increasing the volume of services at a rapid pace is an important condition for more fulfilling the needs of the population. american scientist a. maslow's pyramid is given the first place in terms of its importance to physiological (material) needs2. obviously, such needs should be met at the level of the form of the social system and the development of productive forces, regardless of the level, specific, and at the first level for any society. humans, as sentient moving living being, are primarily required to have their primary needs-that is, to eat food, dress, and have shelter. only then will they be able to engage in education, culture, art, travel, etc? the need for various social services also played an important role in this pyramid. but an important aspect of the issue is that as production forces develop and the income and standard of living of the population increase, its need for services develops at a faster pace than its need for material goods. one of the peculiarities of services is associated with the content and character of labor in the formation of income of the busy population in the service sector. the everincreasing and improving needs for services are reflected in structural changes in the employment of the population, or rather, in the constant increase in the share of services in its employment. the economically active population is a certain part of the population that satisfies the labor demand for the production and service of products. this provides a special basis for solving employment problems at the pace of economic growth. in 2021, the economically active population was 1,585. 4 thousand people, compared to 2018 0.9 on-base percentage. 2 http://www.ctntrforum.ru/macro/stat2 5.htm http://www.ctntrforum.ru/macro/stat2%205.htm american journal of business management, economics and banking volume 12 may, 2023 p a g e | 22 www.americanjournal.org in 2018, 50.6% of the economy-occupied population, 740.5 thousand people, were employed in the manufacturing sector, while 49.4%, 722.9 thousand people, were employed in the services sector. in 2021, 51.2% of the economy-employed population, 722,000 people, were employed in the manufacturing sector, while 48.8%, 688.9 thousand people, were employed in the services sector. we can only say that the reduction in the share of the busy population in the service sector in the economy of the region is due to pandemic. we can say that such changes in the structure of population employment are a natural state. because it did not correspond to the essence of the macroeconomic policy that is being pursued in the country in order to increase the role of the service sector in socioeconomic development. in order to assess the opportunities and prospects for increasing employment of the population in the samarkand region by industry and sectors, we found it necessary to compare it with the indicators of the republic. by comparison, the samarkand region showed that lower levels of employment of the service sector were achieved compared to the republic. alternatively, the proportion of the occupied population in agriculture in the region is 0.9 points higher than the national average. it is worth noting that as the material and technical base of agriculture is strengthened and labor productivity increases in it, the number of busy residents in this network will continue to decrease even further. if we bring the share of those employed in agriculture in the samarkand region (27.8 percent) to the national average level (26.9 percent), 3.5 thousand people in these networks will be able to quit. those who quit are employed in service sector networks. the employment of the working and economically active population at the present stage of the development of society is one of the most pressing, acute socio-economic problems for all countries. for uzbekistan, which is very rich in labor resources and has enormous labor potential, it has become a rather acute problem to provide employment for the population, to give an opportunity to participate in social production of each individual who has a desire to work. in the context of a market economy, on the basis of an entrepreneurial initiative, achievements of scientific and technological progress are widely introduced into production and legally lead to a deepening of the division of labor and a rapid increase in productivity. the current production, adapted to the economical use of resources in general and development on an intensive basis, cannot be realized and developed without a continuous increase in labor productivity. in addition, employment problems have become much more acute in uzbekistan at the expense of workers who are over-employed in production (especially in agriculture), but are gradually laying off as market relations strengthen. in the context of a planned economy, the problem of unemployment has been solved by unreasonably increasing the number of unproductive, ill-productive jobs, involving the labor force in social production, whatever it may be. in the case of a market economy, however, as we have already noted, the need to make the most of all resources, including labor resources, increases. in such conditions, unjustified in previous periods, the abolition of officially created jobs and the reduction of working employees who are "busy" in them, and as a result, their unemployment, are inevitable. summarizing the above, we have identified the main reasons for the imbalance between the supply of labor in the labor market in uzbekistan and the demand for it. in our eyes, these are: firstly – the continuous increase in social labor productivity as a result of scientific and technological progress; secondly-the unharmed finding of jobs created in excess of what is needed in social production; and american journal of business management, economics and banking volume 12 may, 2023 p a g e | 23 www.americanjournal.org thirdly – the complex demographic situation that has arisen in the country and continues to a certain extent. it is necessary to scientifically substantiate the existence of enormous opportunities of the service sector in ensuring employment of the population, solving the problem of unemployment, to determine the prospects. the service sector is also an area that is actively involved in solving the problem of increasing the monetary income of the population. while the view that the number of people employed in the service sector and their income are much lower in relation to the sphere of material production until recently dominated, in later years, from the times when the number and income of those employed in this sector increased at a relatively faster pace, there have also been dramatic changes in these views. the correct assessment of the place and importance of the service sector in the socio-economic development of the country, in the formation of indicators of the income of the population and its standard of living, enhances the focus on the industry, accelerates the need and processes to find a solution to the problems that arise in it. it is important to include clarifications in the components of the formation of the income of the population of the service sector and the sources of their organization. in the current conditions, the following can be included in the structure of the income of the service sector and those who are employed in it: the income of all economic entities and individual entrepreneurs (individuals) operating in the service sector from entrepreneurial activity; the amount of wages received in accordance with the results and capabilities of the personal labor of hired workers employed in the service sector; salaries of employees of state bodies and formations engaged in the management and regulation of the service sector; material assistance provided by the state in relation to workers-employees who are employed in the service sector but need social protection; savings in the income of the population as a result of the use of services and a decrease in costs (a decrease in the cost of the population means an increase in its profitability by such an amount). it plays an important role in the implementation of current tasks such as increasing the volume of services offered to the population for consumption at a rapid pace, raising their quality and per capita to the level of world templates, raising a harmonious generation that is considered as priorities in uzbekistan, improving the lifestyle of the population3, creating suitable conditions for a comfortable. the idea of raising a harmonious generation, mature, civilized, enlightened in all respects, in addition to more fully satisfying the need of the population for material and spiritual favors and services, assumes an increase in its free time and its effective use. the fact is that it is important to increase the free time of the population, to provide services, covering the non-productive time spent by them, however, by other service areas. but in solving such a task, an increase in the wages of the working population is associated with the amount of expenses incurred on non-working from various social resources and their growth. in the current conditions, the population is left with a busy layer of free time, which is largely ineffective. 3 scientific and methodological brochure on the study of the state program on the implementation of the strategy of action on the five priority areas of development of the republic of uzbekistan in the "year of dialogue with the people and human interests «in 2017-2021.tashkent: spirituality, 2017. p. 156 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 24 www.americanjournal.org according to our opinion, if such networks as trade, catering, communication, household service, transport create conditions for reducing the consumption costs of the population, freeing it from domestic labor, ending vain efforts, and thus provide an increase in the leisure of the population, sports and tourism, sanatoriums and resorts, theaters and art palaces serve to spend free time in a profitable, interesting way. it is known that from the first years of our independence, the attention that young people have to grow up as perfect people, acquire full-fledged and perfect knowledge has risen to the level of public policy. especially in the last five to six years of independence, the declaration of the years in our country as the "year of the perfect generation", the "year of the healthy child" also brought these noble works to a high level. raising a harmonious generation4 and improving the quality of labor is one of the most pressing problems in the socio-economic development of our country. uzbekistan's role in the international division of labor, the competitiveness of goods and services produced in the country in the domestic and foreign markets are determined by the quality of labor in the first gal. it is observed that the role of educational services in improving the quality of the workforce is increasing. it is also not for nothing that in later times a lot of attention has been paid to the problems of human capital, the quality of labor and the search for their effective solutions (including by redirecting large financial resources) by the whole world, especially economically developed countries. educational effectiveness in developed countries, development 16 percent depends on the material and technical base, 20 percent on information resources, and 64 percent on the human factor5. these issues are also recognized in the economic literature. globalization processes and extremely fierce competition in the world market demand an increase in the quality of labor in all companies and firms, and a higher level of personal competence. at present, highly skilled workers in the united states account for 45% of the total and in germany for 55%6. nevertheless, companies and firms do not weaken their focus on improving the quality of labor and improving the system of training. conclusions and suggestions our theoretical studies, carried out with the aim of studying the impact of the system of service sector networks on the standard of living of the population, gave the opportunity to define a number of important tasks in this area: -in-depth and comprehensive research should be carried out to reveal the relationship between the service sector, some of its sectors and the standard of living and quality of the population. the implementation of this task significantly increases the chances of raising the standard of living of the population by macroeconomic influence on the service sector and some of its sectors; 4 note: it is a complex of educational processes aimed at spiritual and moral formation of the individual, strengthening the independence of the motherland, raising intellectual potential, free-minded individuals who serve the interests of society and the state. the goal of raising a harmonious generation is to bring up intellectual personnel serving the state and society. 5 scientific and methodological brochure on the study of the state program on the implementation of the strategy of action on the five priority areas of development of the republic of uzbekistan in the "year of dialogue with the people and human interests"in 2017-2021.tashkent: spirituality, 2017. -190 p. 6 kushnir i.v. world economy http://www.be5.biz/ekonomika/mo13/tech.htm american journal of business management, economics and banking volume 12 may, 2023 p a g e | 25 www.americanjournal.org ensuring proportionality between the areas of service and material production. in the process of completing this task, the share of services in the country's gross domestic product and population employment is increasingly approaching developed countries; reduce the cost of services to low-income families, in which the development of state market regulation mechanisms; establish ways to improve strict control measures over the quality of free services; increase and development of types of services aimed at the effective use of free time for the population; in some branches of the service sector (domestic service, tourism and sports, etc.), physically and spiritually outdated equipment is still preserved, and this negatively affects the efficiency of service activities and the quality of services. therefore, strengthening modernization and technical renewal in industry networks; to organize the provision of services to the population, first of all, the financial and economic status of the population of the region in which the service is provided, purchasing power, demand for service services and a number of other factors are studied, the size and types of services provided are also determined based on this; determination of the size and types of services, taking into account the demand of the population for services; to change the types of services and offer the necessary services according to their needs, based on the wishes of the population; taking into account the capabilities of the population when setting an assessment for the services provided by the state. in order to carry out the above-mentioned tasks, to find solutions to the problems facing the field in this regard, it is necessary to carry out applied research, assess the current state of affairs in practice, identify achievements and shortcomings in it. list of literature used 1. president of the republic of uzbekistan shavkat mirziyoyev "new uzbekistan strategy" t.: "uzbekistan" publishing house, 2021-464 p. 2. mukhammedov m.m., urunbaeva yu.p. and others" theoretical foundations of the service sector and the development of tourism " s.: zarafshan 2017.-299 p. 3. mukhammedov m.m., yu.p. urunbaeva factors for the formation and prospects for increasing the standard of living of the population. brochure. "zarafshan", 2010.-131 p. 4. pardaev m.q. urunbaeva yu.p et al the impact of the covid-19 pandemic on the service sector and ways to address it. monography. t.: "publishing house of science and technology", 2022. 516 p. 5. urunbaeva yu. p. service sector and the standard of living of the population: correlation and development prospects. monograph. tashkent.: "fan", 2013.156 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 260 www.americanjournal.org the importance of the investment climate in the inflow of foreign direct investment into the country navruzov ikram abdullaevich senior teacher of the department of “evaluation work and investments” of tashkent institute of finance. uzbekistan, tashkent e-mail: navruzovikrom55@mail.ru a b s t r a c k e y w o r d s in today’s era of globalization and fierce competition, it is difficult to imagine the sustainable development of the country’s economy without its active participation in world economic relations. along with international trade, international investment flows based on mutually beneficial cooperation between the two countries are of great importance today. in turn, foreign investment will accelerate the pace of structural restructuring of the economies of developing countries. attracting foreign investment as the most important direction will largely depend on the ongoing political and socioeconomic reforms in a country. foreign investment plays an important role at both the macro and micro levels, it determines the future of the individual business entity and the country as a whole, and is the driving force of the economy. enterprise risk, investment potential of the enterprise, investment climate, innovation in enterprises, small business entities, innovation, investment process, companies. introduction scientific and technological developments refer to the market, mostly foreign markets, markets outside the country. the market for scientific and technological developments is expanding rapidly in the 21st century, is being divided into new parts, and there is a need to use them more efficiently in manufacturing and services. this is due to the growing role of intellectual labor in the economy. in the 21st century, the market economy is characterized by the growth of demand for science and production, the growing importance of various services, especially information services. this is evidenced by the rapid growth of the internet market. therefore, in a highly competitive environment, it is impossible to lose one’s position, prestige, and break in a competitive environment [1]. scientific and technical innovations apply to production on the condition that they become the property of the buyer or through the right or conditions of temporary use, being the property of its owner. encourages manufacturers to innovate. the analysis of the socio-economic changes taking place in our country shows that the modernization of the economy and the role of active investment policy are very important in the achievements and successes. accordingly, it is important to create an effective system of enterprises, to study the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 261 www.americanjournal.org theoretical and methodological basis for assessing the attractiveness of their investment climate and potential. 2. literature review according to a. busigin, innovation is the renewal of fixed capital or products using science, technology and engineering [2]. according to r. fatkhutdinov, innovation is the end result of innovation, and the change of management of the object is effective in social, economic, scientific, technical, environmental and other ways [3]. foreign economists b. needles, h. anderson, and d. caldwell consider “intangible assets to be intangible assets that constitute capital investment in acquired assets” [4]. prof. a. sheremet defines intangible assets in general as follows: assets that represent a legal and other legal relationship that has no intangible value, bring profit (income) to its owner for a certain period of time, create convenience for users [5]. innovation is the process of ensuring the systematic and continuous introduction of all innovations in any field, regardless of the field of innovation, published innovations, technical and technological advances and technological processes, product supply and other areas [6]. the investment attractiveness of enterprises depends on the country’s investment policy and the created investment climate. in particular, the investment climate is considered as a system of three elements: investment potential, investment risk and legal conditions [7]. considering the factors influencing the formation of a favorable investment climate in the country/region, it should be noted that it is important for the country to be integrated in the world community in terms of investment attractiveness. the strategy of increasing the country’s investment prestige is important for attracting foreign direct investment [8]. interpretation of “investment potential” as a set of investment resources, consisting of part of the accumulated capital, expressed in the form of investment demand in the investment market, which has the potential to become a real investment demand that meets the material, financial and intellectual needs of capital reproduction reaches [9]. the attractiveness of the investment climate, the economic development of each region depends on the potential of capital and labor resources, the level of their use. it is generally accepted that the economic potential of a region and its potential is determined by the production of vital goods through the efficient use of all the complex resources available there [10]. determining the ratio between dividends and reinvestment in a country’s dividend policy, protecting the rights of minority shareholders, increasing share prices, and expanding business activities can increase a company’s investment attractiveness, which has a positive impact on the country’s investment attractiveness [11]. regardless of the field in which joint-stock companies operate in the country, one of the important tasks is to place additional financial resources, including attracting foreign investment. one of the most modern ways to attract investment in joint-stock companies is to use the ipo mechanism [12]. 3. research methodology the research methodology was the analysis of innovative activities of enterprises operating in developed countries. the role of foreign investment in ensuring the competitiveness of enterprises, the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 262 www.americanjournal.org classification of risks affecting the activities of the enterprise, as well as scientific proposals and practical recommendations for improvement through the methods of systematic analysis were formed. 4. analysis and discussion of results in the matter of creating a positive investment environment, it is necessary to interpret the globalization of the economy as the main process and, as a result, to expand the scope of acquiring investment resources, and in turn, to strengthen the competition among investors. if we want to increase the volume of foreign investments coming from abroad, we must make the investment potential of enterprises, regional conditions and conditions more acceptable and higher than others (competitors), and also to activate domestic (national) investments, the “climate” should be favorable and avoid excess risk. we need to focus on ensuring that. the more favorable the investment environment, the lower the entrepreneurial risk of the investor, and this will activate the entry of investors. conversely, if the investment environment is unfavorable, the level of risk is high. this leads to an increase in spending on the part of the recipient of the investment. the state of the investment environment is important not only for the investor, but also for the recipient of the investment. in the current socio-economic conditions, the influx of investments depends on the development of innovative industries and the development of innovative entrepreneurship, the investment climate and the investment mechanism. studies show that if the investment climate is good, on the one hand, it allows for the growth of domestic investment, and the increase of savings in relation to consumption in the structure of planned expenses. this is a guarantee of high rates of economic growth. figure 1. classification of investment potential of enterprises and factors [13] as a result of the active work of various factors of the investment potential of the above-mentioned enterprise, this concentration will allow the active inflow of foreign investment. and that, of course, creates more jobs, more income, more opportunities for economic growth. in addition, the most american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 263 www.americanjournal.org important thing is that foreign investors not only bring capital into the business, but also bring advanced knowledge and experience from their home countries. this will allow the country to grow economically in the future. in the process of globalization, strong competition encourages innovation in every field. the latest achievements in the field of technology, discoveries, innovations, rationalization proposals are rapidly introduced into the field of development and maintenance, and a new approach in marketing, management, production, services, new technologies, techniques and the introduction of a new generation of technology is a sign of investment. replacing existing equipment and technology based on innovation can also mean an investment. the acquisition of new equipment and technologies based on the results of scientific and technological progress is also considered in terms of investment. the determinant of investment is the creation of innovations, rationalization proposals of large organizations and previously unpublished major developments. the results of the above analysis serve to justify the role of foreign investment, especially direct investment, in further deepening structural changes in the economy, accelerating investment activities of enterprises, modernization of production, technical and technological re-equipment programs. figure 2. the volume of key indicators of small business and private entrepreneurship in sectors of the economy [14] recognizing the importance of the role of foreign direct investment in increasing the investment attractiveness of our country, a number of measures are being taken to attract these investments. attracting and fully utilizing foreign direct investment contributes to the growth of employment and living standards in the country, improving the income of the population, increasing the investment attractiveness of our country in the international arena. in the current context of developing a market economy, increasing the country’s investment attractiveness is one of the most important indicators of capital inflows into the country. policies to increase investment attractiveness also play an important role in attracting foreign direct investment to the country. “economic growth is achieved primarily through the creation of competitive industrial chains and increased investment in such projects. at the same time, it is necessary to reduce public american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 264 www.americanjournal.org participation in investment policy and increase the share of private and direct investment” [15]. therefore, the study of foreign direct investment is important to increase investment attractiveness. as a result of the active operation of various factors of the above-mentioned enterprise’s investment potential, this concentration allows active inflow of investments from abroad. this is the management policy of the enterprise aimed at eliminating or, if not, minimizing existing risks affecting the enterprise’s activities in the future. then, the investment potential of enterprises will increase by itself. table 1 investments in fixed assets [16] billion soums territories 2015 2016 2017 2018 2019 2020 2021 republic of uzbekistan 44810,4 51232,0 72155,2 124231,3 195927,3 210195,1 239552,6 republic of karakalpakstan 6021,2 3778,3 2822,0 6757,8 8750,6 7089,8 8110,7 andijan 1956,5 2188,5 2986,0 4711,9 7452,1 9622,6 11176,6 bukhara 4075,9 5922,9 11613,4 9610,9 10366,6 12183,9 20528,3 jizzakh 1304,9 1449,7 1788,2 3606,3 7900,9 12545,4 9233,6 kashkadarya 5894,7 7304,4 11175,3 16518,5 24462,5 20557,6 17359,1 navoi 1809,1 2963,2 3977,9 10579,5 17646,3 15688,4 15020,1 namangan 2227,5 2824,5 3586,7 8158,1 12084,9 12007,2 12982,0 samarkand 3237,2 3623,5 4384,2 7061,4 10266,7 14656,4 15641,6 surkhandarya 1843,6 2142,4 3551,0 7240,6 11835,1 10068,2 12037,8 syrdarya 1083,3 1322,9 1628,0 2699,3 5869,1 7191,9 8051,8 tashkent 4428,1 4238,7 5938,4 11226,9 20353,9 21148,6 28113,6 fergana 2542,3 2643,6 2954,5 5539,1 8685,4 11040,0 12625,2 khorezm 1531,5 1560,5 2175,9 3013,8 5032,0 5391,8 8292,0 tashkent city 6854,6 9268,9 13573,7 26435,7 42458,1 50371,3 58172,7 this, of course, means additional jobs, additional income, and an additional opportunity for economic growth. in addition, the most important thing is that foreign investors bring not only capital to the enterprise, but also the advanced knowledge and experience of their countries. this will allow the future economic growth of the country. figure 3. capitalization of investment risks affecting the enterprise in the cross-section of networks [17] american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 265 www.americanjournal.org it can be seen that the above picture shows the classification of internal and external risks that have a negative impact on the investment potential of the enterprise, and it is necessary to have classical financial mechanisms of the enterprise to reduce the existing risks. for example, in order to reduce the risk of production, it is optimal for the enterprise not to work with only one type of product network, but to use the method of vertical diversification related to the presentation of various assortments of goods to the market. also, in increasing the investment potential of the enterprise, it will be necessary to attract new technologies, increase the qualifications of employees, that is, to use a combination of investment directed at human capital, at the same time, to pay attention to innovative production. 5. conclusions and suggestions the future results of innovative projects are effectively compared, the risks in the phases of the life cycle process are measured, and mitigation measures are developed through their management [18]. summarizing the above analysis and comments, it should be noted that in the context of increasing modernization processes, it is necessary to accelerate the investment flow to the country through the medium and long-term investment strategy of enterprises, and as a result, the organization of innovative production and the creation of new jobs. it also creates the basis for a significant increase in the country’s export potential. another important aspect of foreign investment is that it has a positive effect on the further development of international integration processes of recipient countries [19]. this is a stepping stone for enterprises to enter the world investment arsenal with competitive products [20]. references 1. sabirova l.sh., nosirov e.i. foreign investments: textbook. – m.: economics and finance, 2016. – 150 p. 2. a.v. busygin. entrepreneurship. – m.: work, 2001. 176 p. 3. r.a.fatkhutdinov. innovative management. m.: synthesis. 2000. 9 p. 4. needles b., anderson h., caldwell d. principles of accounting. – m.: “finance and statistics”, 1996. – p. 227. 5. sheremet a., rakhman z. accounting in a market economy. m.: “infra – m”, 1996. p. 135. 6. shakabilovich s. s., bakhtiyorovich o. b. theoretical fundamentals of improving the investment environment attractive in reducing investment risks //texas journal of multidisciplinary studies. – 2022. – т. 6. – с. 67-72. 7. takhumova oksana v., kasatkina elena v., maslihova elena a, alexey v.yumashev, maria v.yumasheva. the main directions of increasing the investment attractiveness of the russian regions in the conditions of institutional transformations. // revista espacios, vol. 39 (number 37) 2018. – p.12; 8. smaglyukova t. m. general approaches to the formation of regional investment policy // modern problems of science. 2014. no. 1. 9. tumusov f.s. investment potential of the region: theory, problems, practice. m., “economics”, 1999. 272-page. 10. akerman ye.n., mixalchuk a. a., trifanov a. yu. typology of regions as a tool for coorganization of regional development // bulletin of the tomsk state university. un-a. economy. no. 331. 126–131-p. 11. abdullayevich n. i. iqtisodiyotni rivojlantirishda xorijiy american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 266 www.americanjournal.org investitsiyalarning o’rni //ta’lim va innovatsion tadqiqotlar. – 2022. – с. 95-96. 12. abdullayevich n. i. attracting foreign direct investment is a guarantee of progress //miasto przyszłości. – 2022. – т. 24. – с. 226-230. 13. ochilov b. mamlakat iqtisodiyotini rivojlantirishda investitsion jozibadorlikni yaxshilash masalalari //iqtisodiyot va taʼlim. – 2023. – т. 24. – №. 1. – с. 75-81. 14. data of the official information site of the state statistics committee of the republic of uzbekistan www.stat.uz 15. data of the official information site of the state statistics committee of the republic of uzbekistan www.stat.uz 16. bakhtiyarovich o. b. investment activities and performance of gigamon companies around the world //czech journal of multidisciplinary innovations. – 2022. – т. 6. – с. 1-6. 17. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. 18. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. 19. butaev j., ochilov b. the role of the investment environment in attracting foreign investment //asian journal of multidimensional research. – 2021. – т. 10. – №. 5. – с. 687697. 20. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. http://www.stat.uz/ http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 23 www.americanjournal.org problems in creating a russian-language environment in preschool education and ways to overcome them makhammatkulova nadirakhan dilshodjon kizi student of kokan spi z. boytemirova supervisor, candidate of philosophy, associate professor a b s t r a c t k e y w o r d s the purpose of this research is substantiation of the system of work on teaching the russian language to uzbek preschool children who speak their native language, and learn russian in kindergarten in the process of teaching russian as a non-native language. teach children to communicate correctly in their native and russian languages, to be able to think deeply and correctly express them. from the first years of his life, a child must with all his heart, with all his soul love his native land, his homeland, his national culture and respect the culture of the russian people. during the research these methods are used: theoretical, comparative, sociological and pedagogical. the proposed system of work is aimed at the complex mastery of the types of speech activity (listening, speaking) in russian by preschoolers in bilingualism and contributes to the solution of educational problems. russian language, native language, teaching russian as a non-native language, preschool education standards, uzbek russian bilingualism, early bilingualism, language environment. introduction it is best to build learning a second language when all adult participants in the process have a good idea children learn to draw with one teacher, study music with another, and each of these teachers follows the requirements of their own program. inconsistency in the actions of different teachers professionals leads not only to significant overwork of children, but also to dissatisfaction of the teachers themselves with the results of their work. 2. main part. teaching the russian language should become a task not only for a professional teacher who meets with children twice a week for 25-30 minutes, but for the entire staff of a preschool institution. to do this, we must improve the level of teaching the russian language in the preschool areas of pedagogical universities of how to: • talk with children (specifically, visually, on topics of interest to the child, confidingly, respectfully, in a friendly manner, not downwardly, sincerely carried away by the proposed content; if it is said so that the child does not understand, you should reformulate your thought); american journal of business management, economics and banking volume 14 july, 2023 p a g e | 24 www.americanjournal.org • gradually complicate your speech (first name individual words, include it in the context, pronounce clearly, slowly, repeat, achieving full understanding and adequate response); • clarify the form and thought of children's remarks (ask again, if the child said something that is not clear enough, this should be repeated in a form in which the statement becomes clear, for example, drank klep here is white bread, i give you white bread, take white bread; if the child omits a mistake, you cannot correct it directly, you need to say the child's statement in a form that will not contain errors, for example: he wants milk do you want to say: i want milk, reformulate the child's statements in different contexts, for example: beautiful cat, yes, the cat is beautiful, i like the cat, she is beautiful); • continue the child's statements (for example, enter the subject mentioned by the child in the description: book. let's take a book, this is a book about a tiger, let's see what the tiger does); • ask questions (ask not only about what the child sees, where he was, what he did, what he likes, what he wants, but also how he thinks about different things, why certain events occur); • expand vocabulary (the more words a child learns, the more he learns, goes in two ways: 1. in a significant situation, a separate word sounds, for example, a rainbow in the sky they say a rainbow and learn a poem about a rainbow, like "rainbow is an arc, don't let it rain, come on sun, bell"; 2. the same words and expressions are repeated in everyday situations of reality or in a game, for example, as players' remarks or images on cards; at the same time, it is necessary to follow the gradual complication of the designation, say, first the word pants is learned, and then pants, shorts, sweatpants, etc.). • provide motivation (the child should want to say something, which means that he should feel how important his proactive statements are, how he rejoices in all his words; motivation is provided through the introduction of fabulous, bright, colorful elements, game moments, surprises, joyful and funny event, promotion). thus, at the moment, the priority areas in teaching russian to preschool children are: the development of phonemic hearing, the assimilation of words and sentences, the development of coherent speech (continue teaching the construction of statements, composing stories, retelling texts, enriching the dictionary). in this case, one should focus on creating a positive motivation for studying the russian language. in order to increase the productivity of the lesson, it is necessary to consult parents on explaining the peculiarities of learning the russian language. educators in groups to create a favorable environment for mastering the russian language by communicating in a group in russian need to strive for the development of speech activity in the classroom and in their free time as the leading direction in the work at this stage, and the children have a need to communicate in russian children in the classroom are very fond of repeating phrases. better memorize and make sentences on the mnemonic table (use of pictures or symbolic signs). they love physical exercises very much. poems are well recited in russian. all this is used in every lesson of the russian language. pure phrases, poems, physical minutes are selected to the corresponding lexical topic. an important role in teaching russian at udl in a monolingual environment is played by additional education circles. teaching the russian (non-native) language of preschoolers of the republic of uzbekistan in accordance with the state educational standard of preschool education is the development of oral speech, which involves the creation of a communicative basis for communication at an elementary level within the scope, areas and situations provided for at the stage of preschool education. teaching children the american journal of business management, economics and banking volume 14 july, 2023 p a g e | 25 www.americanjournal.org russian language in mono-national preschool institutions is carried out in the absence of a russian language environment, while a significant part of children do not speak russian. due to their age, they are not able to independently comprehend the meaning of the russian language, to realize the need to study it. therefore, from the very first moments of organized teaching of the russian language, children are explained in their native language why russian is needed in life, that they will soon go to school, where they will study russian, and in order to study well, already in kindergarten one should learn to speak russian. preschool children who study russian in mono-national preschool institutions master it in an artificially created linguistic environment, which should have a developing character. the concept of a linguistic developmental environment includes both the actual linguistic environment and the subjectdevelopmental environment of the child. in the methodology of teaching russian to preschool children, it is proposed to conduct a linguistic examination of children to determine their level of russian language proficiency in accordance with the following parameters: 1) the child does not speak russian at all; 2) the child does not know russian as a means of communication (knows several dozen russian words); 3) the child knows, understands and uses frequent words, phrases, etiquette forms in speech, understands the appeal of an adult; can tell a short poem; 4) the child understands simple texts, is able to describe play actions, use simple syntactic constructions; enter into a simple dialogue in certain communication situations; 5) the child understands the addressed speech, knows russian fairy tales, songs, proverbs, sayings, can communicate with familiar native speakers of the russian language; 6) the child independently uses the language in various life situations of communication, understands spontaneous speech, is able to participate in a conversation at the level of a native speaker of his age. therefore, when teaching the russian language in preschool organizations, it is necessary to carry out a differentiated and individual approach. for each lesson, its own educational and educational tasks should be formulated, associated with the formation of initial skills and practical knowledge of the russian language orally, recognition of russian speech by ear (speech of the educator) and the production of its simplest samples, with the development of cognitive-intellectual and emotional spheres etc. when constructing the educational process, one should take into account the age characteristics of preschoolers (limited working capacity, visual-figurative nature of thinking, etc.). as you know, at first, each pupil is required to perform those actions that he has already mastered, that is, there is no need to artificially promote, to speed up the pace of the child's speech development. children behave in different ways: one can give a complete answer to the teacher's question, the other can respond with a gesture or a certain action, and the third can translate into their native language. therefore, the standard puts at the forefront the principle of individualization, aimed at revealing the own potential of each child (natural capabilities, abilities for various types of educational activities, the rate of assimilation of the material, etc.). in the state educational standard of preschool education of the republic of uzbekistan, special attention is paid to the formation of the personal potential of the child. at first, it is advisable to carry out work on the formation of the qualities of personal development in children (sociability, the desire to make contact, the ability to interact in a team, etc.) in their native american journal of business management, economics and banking volume 14 july, 2023 p a g e | 26 www.americanjournal.org language. the peculiarities of the formation of the mechanism of early bilingualism determine the need for its formation already at the stage of preschool education. at this stage, the formation of the child's linguistic personality begins, the identification and development of his linguistic abilities. a number of psychological characteristics inherent in preschool children also contribute to the successful mastering of the russian language: high sensitivity, active memory, easily formed motives of speech activity, as well as the visual-figurative nature of thinking, etc. in the course of teaching the russian language in kindergartens, the formation and expansion of the child's ideas about the world around him occurs with the help of the native language, which is the support, the surest, shortest path to understanding the essence of various phenomena unfamiliar to him, with which the child first has to get acquainted in kindergarten, and then in elementary school at various stages of learning. therefore, at first, concepts and representations should be formed mainly in their native language: they resort to it when describing game situations, when explaining the articulation of difficult sounds and sound combinations, when comparing facts from the field of grammar, when semantical analyze words. attaching the importance of the role of the native language in teaching russian, we mostly talk about the native language as a means that facilitates the process of mastering the russian language, on the use of knowledge of the native language as the most effective way of mastering a second language. however, in other cases, the native language creates certain difficulties in learning a second language, therefore, to overcome them, it is necessary to search for the most effective techniques. the teacher must clearly understand, on the basis of a comparative analysis, the system of the native and russian languages, where the native language will contribute to the assimilation of the russian language, and where it will create difficulties. the level of knowledge of the native language by children in the conditions of the formation of early bilingualism affects the process of mastering russian (nonnative) language and the purpose of its education in preschool age. the achievement of this goal depends on the effectiveness of building an integral didactic system of teaching the russian language in preschool educational organizations, since at an early age that linguistic foundation is laid, on the basis of which the process of mastering a second language is built in the future, a positive psychological attitude is created, interest in the language being studied is formed. it is at this age that the russian language, due to the sensitivity of preschoolers to the acquisition of a second language, is easily and painlessly included in the structure of their consciousness. in addition, what the baby learned in the first years of life, as you know, will forever remain in his memory, especially in conditions when the education received in kindergarten naturally develops into the next stage into the upbringing and teaching of children at the initial stage in school. the main directions of teaching the russian language to preschoolers are: 1) education of sound culture (perception and pronunciation of sounds); 2) activation of the dictionary (using words correctly, in exact semantic correspondence); 3) the formation of grammatical structure (the use of grammatical structures); 4) the development of coherent speech (dialogical and monologic). the main condition for organizing the content of teaching the russian (non-native) language of preschoolers is the definition and concretization of the language material on the basis of which the speech activity of uzbek children is formed. the minimum of grammatical material provided for mastering by preschoolers, taking into account the peculiarities of the native language, is presented in the form of specific generalized speech samples (typical sentences). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 27 www.americanjournal.org the speech sample is filled with lexical and grammatical material, the basis of which is formed by morphological forms, for example: the nominative case of masculine, feminine and neuter nouns in the singular and plural, personal pronouns in the singular and plural, personal forms of verbs of the 1st and 2nd conjugation in the present tense in all three persons singular and plural imperfective, verbs in the past tense in masculine and feminine, etc. variations in this grammatical material should facilitate the automation of the use of forms and constructions, as well as the generalization of individual linguistic factors. knowing one model, you can build a large number of sentences using it. children train in pronouncing these units, perform various operations with them in order to learn the grammatical structure and through it their grammatical meaning. the active use of the syntactic base involves the development of the ability to construct sentences and use them as the minimum communicative unit of the language. the main directions of teaching the russian language to preschoolers are: 1) education of sound culture (perception and pronunciation of sounds); 2) activation of the dictionary (using words correctly, in exact semantic correspondence); 3) the formation of grammatical structure (the use of grammatical structures); 4) the development of coherent speech (dialogical and monologic). the main condition for organizing the content of teaching the russian (non-native) language of preschoolers is the definition and concretization of the language material on the basis of which the speech activity of uzbek children is formed. the minimum of grammatical material provided for mastering by preschoolers, taking into account the peculiarities of the native language, is presented in the form of specific generalized speech samples (typical sentences). the speech sample is filled with lexical and grammatical material, the basis of which is formed by morphological forms, for example: the nominative case of masculine, feminine and neuter nouns in the singular and plural, personal pronouns in the singular and plural, personal forms of verbs of the 1st and 2nd conjugation in the present tense in all three persons singular and plural imperfective, verbs in the past tense in masculine and feminine, etc. variations in this grammatical material should facilitate the automation of the use of forms and constructions, as well as the generalization of individual linguistic factors. knowing one model, you can build a large number of sentences using it. children train in pronouncing these units, perform various operations with them in order to learn the grammatical structure and through it their grammatical meaning. the active use of the syntactic base involves the development of the ability to construct sentences and use them as the minimum communicative unit of the language. conclusion so, to conduct effective training sessions in the russian language, it is necessary: 1) solving the personnel problem; 2) determine the topic of communicative-speech situations within the framework of the organized activities of children; 3) to select linguistic and speech didactic material corresponding to the age characteristics of bilingual children, the principles, goals and objectives of teaching russian as a non-native language; 4) select adapted texts for listening and speaking; 5) compose speech models and typical sentences; 6) select the means, forms and methods of teaching the russian language. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 28 www.americanjournal.org in general, teaching the russian (non-native) language of bilingual children, taking into account the sociolinguistic and methodological conditions for the formation of early bilingualism, is important in the pedagogical process of a preschool educational organization and actively contributes to solving the problems of the moral, physical, artistic and aesthetic development of children. references [1] avanesov r.i., sidorov v.n. the system of phonemes of the russian language. m: nauka, 1970. – 262 p. [2] balykhina t.m. methods of teaching russian as a second language. m., 2010. [3] johnson k.e. the sociocultural turn and its challenges for second language teacher education. // tesol quarterly., – london., 2006: – 235 p [4] journal "russian language and literature in the uzbek school" no. 3, 2000. [5] protasova e. yu., homeland nm methodology for the development of bilingual preschoolers. m.: vlados, 2009. – 248 p. [6] shakirovoy l.z. methods of teaching the russian language in the national school. leningrad: education, 1990. [7] state educational standard of preschool education of the republic of uzbekistan. [8] velichuk a.p., bazhanova e.a. russian language in senior groups of national kindergartens of the rsfsr. leningrad: education, 1990. – 238 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 1, | june, 2022 p a g e | 37 www.americanjournal.org resolving consumers disputes within the cameroonian banking sector: a legal analysis bafuke evarestus nji. phd faculty of laws and political science university of ngaoundere cameroon p.o box 453 ngaoundere cameroon e-mail: evarestbafuke@gmail.com a b s t r a c t k e y w o r d s the government of cameroon like any other, from the inception of the modern banking system has strived to guarantee an effective protection of consumers of banking services through diverse means. this has been through the implementation of legal and institutional mechanisms of control aimed at ensuring strict compliance to banking ethics and available legislations enhancing fairness and equality in the dispensation of services. within the banking sector, cameroon's integration into regional and sub-regional blocks such as ohada and cemac has paved the way for a plethora of sub-regional legislations and institutions such as the cobac and beac to complement available pieces of national legislations in the protection of consumers of these services. the government in its endeavor to ensure the availability of an adequate mechanism of protection of all consumers, in 2011 put in place law no. 2011/012 of 6th may 2011 on the legal frame work of consumer protection in cameroon to add to the lots of existing legislations. despite this laudable and worth applauding initiatives all aimed at protecting the rights of the consumers, banking consumers still encounter hardship due to the consistent violation of their rights by the professionals of the field. these difficulties have even skyrocketed in the last two decades with the advent of electronic banking and the involvement of nonfinancial institutions in the streams of banking services which makes difficult the effectiveness of available pieces of legislations thus given way to the continuous and persistent rise of dispute in the cameroonian banking sector. based on these setbacks, this paper aims at unveiling the available legal redress to consumers of banking services who are prone to such difficulties. bank; services; consumers right; customer and consumer. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 38 www.americanjournal.org introduction a cross section of the world’s economy is financed by financial institutions. thus it’s paramount to ensure its continuity by way of protecting its users who have bestowed on them their trust. this will go a long way to enhance a comfortable and trust worthy business environment due to the reliability of the banking sector. the failure of this sector has had a negative effect on the global society as history holds in the great depression of the 1930s and the financial crises of the 1990s. given that banking services are of vital importance to our today’s economy, adequate legal mechanisms must be put in place to regulate their operations in the dispensation of their services to consumers both at the national and international levels. this is in order to protect the consumers from being exploited by the professionals of the banking domain and equally ensure the transparency and legality of those engaging in the dispensation of these services. to that effect, laws have been put in place both at the national and sub-regional level for such. in cameroon, a plethora of pieces of legislations amidst law no.2011/02 of 06 may 2011 on the legal frame work for the protection of consumers; law no. 000005-minfi of 13 january 2011 on guarantee minimum banking services, cobac regulation r-2009-02-on the fixation of categories of credit establishments their legal forms and their authorized activities, ordinance no 90/003 of 27th april 1990 governing the liquidation process of financial institutions, repealed by article 17th of the 1992 convention have been put in place to ensure the fairness and transparency in the provision of banking services. couple with these legal framework is an arsenal of an existing institutional framework to ensure the strict respect and compliance of the legal instruments by the banking service providers. amongst these institutions are the cobac1 and beac2 as the main structures regulating banking activities within the cemac3 sub region working in synergy with the ministry of finance and the local courts to ensure the respect of banking ethics and strict compliance with the existing legal provisions by the service providers. despite these efforts, the situation of consumers is still very precarious and has even worsen with the advent of electronic banking and new service providers such as mobile network operators who have engaged in later times in the provision of financial services. these new technology and actors that have brought to place the unbanked and under banked have equally brought in new challenges such as cyber criminality and insiders fraud amongst others, that continuous to be a nightmare to consumers of banking services. these and others have therefor placed the consumers at the behest of the service providers, most especially giving the fact that the nature of their contract is one of adhesion. it is equally vital to underscore that the concept of consumers’ protection has witnessed in the last two decades an increasing intervention by the government due to the expansion of the banking services and its providers through the creation and implementations of laws such as regulation no.01/02/cemac/umac/cobac relating to the conditions for the exercise and control of microfinance activities; regulation no. 01/03-cemac/umac/cm of 4th april 2003 on the prevention and combating of money laundering and terrorist financing in central africa; regulation no. 01/09/cemac/umac/cobac of 20th april 2009 creating the deposit guarantee fund in central africa and regulation no. 01/11/cemac/umac/cm of 18th september 2011 relating to the exercise of the emission of the activity of electronic money to name a few, all in 1 commission bancaire de l’afrique centrale. 2 banque des etats de l’afrique central. 3 communauté economic et monétaire de l’afrique central american journal of business management, economics and banking volume 1, june, 2022 p a g e | 39 www.americanjournal.org responds to the problem of consumers related dispute. these efforts all aimed at protecting the consumer have been put to question due to the fact that consumers still suffer gross violation which either stems from insiders fraudulent activities, cyber criminals or mismanagement of some banks that have found themselves in crises thereby causing great lost to the consumers or the unlawful disclosure of customers information to name a few. this paper thus seeks to bring out the legal redress available to consumers of banking services in cameroon in a circumstances in which they feel cheated or deem that their rights have been violated. 1.1 conceptualization of consumer the definition of the term consumer is elastic. according to the molony commity, a consumer includes anyone who consumers goods or services at the end of the production chain4. within the banking sector, the term consumer is made of two groups of persons. these are consumers who are customers and consumers who are not customers. the term consumer and customer within the banking sector at one point in time could be used interchangeably. however, there is more to a consumer than a customer5. a consumer includes both customer and others as mentioned above. within the cameroonian context, a consumer has been defined by law no 000005/minfi of 13 jan 2011 on guaranteed minimum banking services as all physical persons who are customers in particular in the domain of banking services, that acts with a noncommercial aim and who has his principal residence in cameroon6. within the serbian context, serbian law on the protection of financial service consumers considers a consumer to be a natural person who is using or who has used the financial services, or who approached the provider of financial services with an intention of using the services and who is using financial services for a purpose outside his trade business and profession7. this therefore connotes that a consumer within these legal frameworks must be one acting out of the scope nor purpose of business or profession but for personal consumption. this in fact seems to make complex the consideration of customer who fall within the ambits of consumers. however a definition has been attached to a customers. a customer according to sheldon is any person keeping an account whether current or deposit with the bank8. on a case law perspective, the judicial committee of the privy council of taxation v. english scottish & australian bank ltd, suffices as definition. in the case, a customer was defined as a person whose money has been accepted by the bank on the footing that he undertakes to honour cheques up to the amount standing to his credit. this is so irrespective of whether his connection with the bank is short or long standing9. it is evident therefore that a person becomes a customer of a bank when he opens an account with it. this seems to make sense, as the purpose for the creation of the account could either be for a savings or deposit account for which gains 4joseph n.e, (2012/2013), lecture notes on the law of consumer protection, university of dschang, faculty of law and political science, p.2. 5 bafuke e.n, (2020), the protection of consumers of electronic banking in cameroon, university of dschang, faculty of law and political science, phd thesis p.10, unpublished. 6 arrête n° 000005/minfi of 13 jan 2011 portant sur le service bancaire minimum “toute person physique dans la clientèle des particulier qui, dans le cadres de service visés par le présent arrête agit dans un but non commerciale et qui a sa résidence principal au cameroun ». 7 article 2(9) 8see h.p sheldon law of banking p.75 9 (1920) ac 683, ladbroke v. todd, (1914) 30tlr 433 and co-v. lloyd’s bank ltd., (1932) 48 tlr 344. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 40 www.americanjournal.org could be business oriented or for personal usage. that said, where the purpose falls outside the scope of business or other productive aims but that of personal consumption, the customer would fall within the scope of the consumer protection law. technically speaking therefore, a customer will be considered to be a consumer and the subject of the consumer protection law if he uses the financial services, or s/he approached the provider of financial services with an intention of using the services and who is using financial services for a purpose outside his trade business and/or profession. 1.2 duties emanating from banking contracts the banking contract imposes some obligations on the parties thereto. these reciprocal obligations imposed10 on both parties, constitute amidst others a mechanism of protection of parties to a banking contract. these duties generally are backed by rights which within the framework of the banking contract these rights could either be of a general or special nature. general rights properly speaking as the name implies, are rights enjoyed equally by every customer of a bank11. these rights are gained equally without distinction by customers upon the creation of an account. contrarily, special rights are reserved to particular customers based on other determining factors12. these rights reserved for customers are held and used by them throughout their relationship with the bank and others even subsist after the termination of the banking contract, such as the duty of confidentiality. these rights therefore have proven over the years to be the cause of disputes within the banking sector, for the service providers always turn to act in disregard of such by not respecting their obligations, thus causing the day to day disputes. a hand full of duties all being a succinct mirror image of consumers’ rights have been identified to emanate from banking services particularly those linked to the honouring of cheques and the opening of accounts. in this light, the modern day position of the implied contractual obligations owed by banker to customers in the ordinary course of business requires a careful restatement along the following lines: the duty of reasonable care and skill; banker’s duty of secrecy (with exceptions being compulsion at law; duty to the public to disclose in the bank’s interest; disclosure with customer’s consent)13, statement of account by the bank; honour customers cheque; duty only according to customer´s mandate to pay; duty not to pay countermanded cheque; duty to repay; payment of cheque drawn by the customer; duty to rectify errors; duty not to cease to do business with customer except upon reasonable notice; duty to demand repayment of overdraft duty to give reference on customer´s credit and standing advice on investments; safe custody of valuables; duty of pre-contractual information;14 duties of a collecting bank; duty to customers; duty to the true owner of the cheque. the violation of these obligations by the service providers be it directly or indirectly has acted as a foundation and a catalyst for the numerous litigations that have existed based on banking contractual disputes in cameroon. 10 article 10 of règlement no 02/03/cemac/umac/cm du 4 avril 2003. 11 bafuke e.n, (2020), the protection of consumers of electronic banking in cameroon, university of dschang, faculty of law and political science, phd thesis p.149, unpublished. 12 ibid at p.140. 13 see fon fielding f & bafuke evarestus n. (2020), the bank’s duty of confidentiality under cameroonian law: absolute or qualified, journal of banking and insurance law, vol. 3 no. 1. 14 serbian law on consumer’s protection. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 41 www.americanjournal.org 1.3 justification of consumers protection the changing financial landscape has brought with it new challenges for bank management, regulatory and supervisory authorities, from the reliance on technology to provide banking services with the necessary security. while electronic banking can provide a number of benefits for customers and even the banks themselves, the risks associated to this service exacerbates that of traditional banking15. there are a good number of reasons which can be advanced why banking consumers have to be protected. this is so because irrespective of the consumer protection law being the first of its kind in cameroon which makes the consumer stands taller than the seller (in this case the service provider) as of the principle of caveat venditor,16 the consumer still stands at a risky position since in a contractual relationship between a banker and customer it is always a contract of adhesion17 putting the customer at a disadvantageous position leading to the principle of caveat emptor, that is buyer beware. the use of the internet in carrying out transactions has further exposed banking customers to so many risks makes the ignorant on what to do in case of a threat. the involvement of mobile network operators in the dispensation of banking services brings further other impediments to deal with. in this regard, banking consumers are to be protected from constantly being victims to risks that could cause them loss. 2. enforcement of consumer rights by way of a collective action the expansion of the banking sector and the multiplication of services offered by the banks, coupled with the increase rate of consumers have prompted the interest of consumers to concord. this problem of interest encountered by consumers can be quickly and easily resolve through the use of consumers association. in striving to protect their rights, consumers make use of a dual mechanism of protection through which they can vindicate for their rights violated. this could either be through a collective action or an individual action. consumers’ litigations could further be divided into two categories: those that concern the individual interest of the consumer and those that bring into place the collective interest of consumers18. this seems to make sense as this aspect has brought to place the emergence of a dual mechanism of protecting consumers’ rights and thus resolving dispute as provided for by the 2011 consumer’s protection law. this could be through a collective action or an individual action. 2.1 collective action to enforce consumers’ rights. given that nobody can render justice for himself and that nobody can be a judge and party in the same suit, the sanction of the law can only emanate from the public authority19. that is the reason why every right is backed by an action in law. the exercise of which will give way to a court action20or and out of court settlement through other legally approved means of dispute resolution mechanisms. it should 15brian (m), (sept. 2000) why don’t consumers use e-banking products? towards a theory of obstacles, incentives and opportunities, federal bank of chicago, emerging payments occasional paper series, (eps-2000-1) p. 25 16nzalie (j.e), lecture notes on the law of consumer protection, department of common law, faculty of law and political science, university of dschang, 2015/2016, p. 5 (unpublished). 17a contract of adhesion is one whose provisions have been totally prepared by one party leaving the other party to either contract on the terms provided or not. 18 « ceux qui concernent l’intérêt individuel d’un consommateur, et ceux qui mettent en jeu l’intérêt collectif de consommateur » calais-auloy j. et temple h. (2011), droit de la consommation, précis dalloz 8e ed, p.515. 19 ibid, p.100. 20“dont l’execise donnera lieu à un procès malinvaud p. (2006) introduction a l’étude du droit, 11e ed., litec, p.351. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 42 www.americanjournal.org be underscored that consumer’s litigation could be actual (has occurred) or eventual (occurrence in contemplation), hence a dual interest is ear marked to be protected. that is a collective interest and an individual interest21. the collective interest is assigned to a group of consumers while individual interest can only be evoked by the consumers in their individual capacities. the collective action is carried out by independent autonomous bodies created by consumers to fight for a common benefit of the consumers. these collective actions, are carried out by actors such as consumers association22 and non-governmental organizations23. this action differs from individual actions because it targets the consumers as a whole and not a single dissatisfied consumer. even though collective, the benefits are enjoyed by consumers in their numbers and individually. thus, a collective action could be a curative for a nursing individual action or a pending action. in the quest of achieving adequate protection, consumer associations make use of both preventive and protective measures. however, other measures of protection are equally available both to the consumers association and individual consumers such as court action (judicial method of protection), which could be brought either in crime, torts and/or contract or out of court settlement (extrajudicial method of protection). the implementation of this method of dispute settlement gives the consumer(s) the possibility to be reassured the protection of their rights in case of any violation(s). 2.1.1 the preventive procedure of resolving consumer’s litigation the economic platform today presents a new image. this is partly due to the fact that markets are characterized these days by massive production and distribution of goods and services. this system of massive production and distribution prompts the interest of consumers to always concord. the preventive mechanism therefore principally seeks to eradicate any future damage(s) that may be detrimental to the consumer. in fact, the main target of the preventive action is that of preventing a collective prejudice. dreveau, points out that the prejudice is detached from the author of the action under reparation. it is not assimilated to him and does not represent him legally24. in effect, when a consumer association or ngo demands reparation based on the fact of the relationship that she protects, she does not do so as a substitution to the victim(s) she is representing25. her action differs thus, from the individual action, given that the prejudice of a collective interest is not an addition to individual prejudice26. a collective prejudice, refers to a prejudice faced by a group of people with a common status. according to marty and raynaud, a collective prejudice is that which attains an undetermined number of individuals with a particular believe in such a way that we cannot say that he or she is particularly injured27. it should be noted that the collective prejudice is autonomous from the person who demands reparation. that said, the preventive procedure seeks to prevent damages that 21 “l’intérêt collectif et l’intérêt individuel’ dreveau c. « réflexions sur les préjudices collectif », rtd. civ, avril. juin 2011. 22 see article 22 of the law no. 90/053 of august 1990 equally see article 22 of law no. 2011/012 of 6 th may 2011 on the legal framework of consumers protection in cameroon. 23 the creation of ngos in cameroon is guaranteed by law no 99/014 of 22 december 1999. 24 “ce préjudice est détaché du titulaire de l’action en réparation. il ne lui est pas assimile et ne le représente pas juridiquement». cité par dreveau, c. (2011), « réfections sur le préjudice collectif », rtd. civ, p.259. 25 bafuke, op.cit note 11 at p.101 26 dreveau, c. (2011), “réfections sur le préjudice collectif”, rtd. civ, p.259. 27 “celui qui atteint un nombre indéterminé d’individus a raison de leur appartenance aux croyances sans que l’on puisse dire que tel ou tel est particulièrement lésé ».cité par dreveau (c.), ibid, p.259 american journal of business management, economics and banking volume 1, june, 2022 p a g e | 43 www.americanjournal.org may be faced by a large proportion of consumers. however, it will be vital to see how such procedures function through the operation of its actors. 2.1.1.1 the characteristics of the preventive action the preventive protection of consumer’s collective interest invokes a dual action. these are: action in suppression of an abusive clause and an action in cessation of an illicit act. 2.1.1.1.1 action in suppression of an abusive clause the insertion of a clause in a contract such as a banking contract exposes numerous consumers to be affected. the damage here resides in the danger to be faced by consumers as a whole. as a matter of fact, due to such an act and its gravity, consumers may be affected either directly or indirectly. an abusive clause produces a breakdown in the equilibrium of the contract, i.e., reciprocal obligations. the imbalance created is much significant that it is necessary to think of an action in suppression of abusive clauses in contracts. subsection (a) of section 3 of 2011 law on the framework on consumers protection consecrates in it the principle of protection. section 3 (f) on its part consecrates the principle of participation according to which consumers have the right and the liberty to form consumers associations or organizations, that are benevolent autonomous and independent. this is to realize or participate in the promotion and defense of rights targeted by the 2011 law. this seems to make sense as it could be concluded that the authorization of consumers association bestows on them powers and gives them the latitude to bring up a collective action so as to suppress abusive clauses thereby protecting consumers from the ills of the professionals before the conclusion of the contract and during the performance of the contract. this action by consumers association has a peculiar characteristic. that is, it can only be preventive and collective28. this characterization is contrary to the general principle of procedure of court action wherein it is upon the commission of an offence and or the realization of the offence that gives way to an action. the acceptance of such an action is necessary to combat effectively and efficiently abusive clauses and subsequently pronounce their nullity. these associations could bring an action in front of a competent jurisdiction or arbitrary tribunal. it should be noted that this action does not affect already concluded contracts, but rather contracts that are yet to be concluded. the action put in place here does not concern only particular consumers but a collectivity of consumers of the banking sector. the judge in the light to appreciate the abusive character of the clause will perform an analysis in abstracto so as to see if the clause in question creates a significant disequilibrium towards a group of consumers. 2.1.1.1.2 action for the termination (cessation) of illegal scheme an illegal scheme is a manner of acting, behaviour, a plot of a fraudulent nature that is contrary to the law and public order. on a general note, it is contrary to the law (public order and good morals)29 and could be seen in a restrictive commercial practice or an inequitable commercial practice an illegal scheme (unlawful character). 28 civ. 1re, 18 sept.2008, no 06-22.038, d. 2008. aj 2437, obs. x. delpech: r. mortier, dr. sociétes 2008, comm. no 246: n. dupont, jcp 2008.ii.10220. 29 cornu g, (2004) vocabulaire juridique, association h. capitant, puf, 6e ed., v. droit de la consommation. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 44 www.americanjournal.org association in addition to putting up an action to suppress abusive clauses can also elaborate a concrete action to eradicate or stop illegal schemes such as behaviours that counteracts with the law. consumers association of the banking sector can petition the judge or any arbitrary tribunal in a bit to get hold of any measure that can eradicate such fraudulent and illegal acts of the professionals. this possibility is granted to them by article 27(3) of the 2011 law. the latter provides that “preventive action shall be that which seeks to remove the threat of infringement of consumer’s right. it may be lodged only by a consumer’s association or a nongovernmental organisation”. the latter is similar to that of the administration aimed at stopping fraudulent behaviours that are harmful or detrimental to the consumer. it is important to note that in cameroon, the protection of consumer’s right is firstly the matter of consumers associations, whereas in france, it is firstly the matter of the administration30. with regards to the suppression of abusive clauses in cameroon, the most reliable way of its resolution is through amicable settlements. in effect, in the case of litigation, consumer’s associations or ngos should seize regulatory organs that establish the relationship between consumer’s associations and consumers and the defaulting institution. it is important to note that during the trial process, the burden of evidence to the contrary of the allegation shall lie on the service supplier31. decisions arrived at within the frame work of the proceedings instituted by the consumer’s organisation or the ngo shall have all their beneficial effect on all consumers and may be evoked by a consumer or group of consumers to obtain compensation for the lost they suffered32. 2.1.2 the protective procedure to settle consumers’ disputes this procedure entails bringing and out of court settlement of the consumers’ dispute when the consumer(s) right(s) have already been violated or where a dispute has arisen or is already in existence between the parties to the contract. this method of settlement of dispute could either be solicited by the parties or provided to the parties by way of law. extra judicial settlement will entail mediation and arbitration as the essential mechanisms for dispute settlement. this mode of settlement of dispute could be initiated by an individual consumer for his personal interest or the consumer association for a collective interest. 2.1.2.1 extra judicial method of enforcing consumers’ right an action for the enforcement of rights could be brought by an individual consumer who feels his rights have been violated by the service provider. this action could either be through a court settlement or an out of court dispute settlement mechanism. the choice however remains that of the party initiating the dispute. however, the 2011 framework law recommends more of an out of court settlement as the most appropriate for the resolution of consumers’ disputes as it gives way for the creation of arbitrary tribunals at every sub divisional level. this initiative worth applauding should be noted is more of a paper based work that is yet to go operational, thus most arbitrary issues till date are handled by the cameroon professional and employers’ organization33 centre. these out of court mechanisms consists of mediation and arbitration (and action here could be collective or individual) which solely are the focus of the 2011 framework law on consumers protection. 30 calais-auloy. j et temple. h, (2011), « droit de la consommation », précis dalloz 8e ed, pp566 et seq. 31 section 28 of the legal framework of consumers’ protection law no 2011/012 of 06 may 2011. 32 section 29 ibid. 33 commonly known by its french acronyme as gicam (centre d’abitrage du groupement inter-patronal du cameroun). american journal of business management, economics and banking volume 1, june, 2022 p a g e | 45 www.americanjournal.org 2.1.2.1.1 arbitration arbitration34consists of bringing voluntarily litigation out of court, in front of one or many persons (arbitrators) selected by the parties who have upon them the obligation of resolving their disputes35. any natural person or physical person may resort to arbitration with respect to any right on which he or she has free disposal. thus, in cases of violation of consumers’ rights, a consumer can bring the case in front of an arbitrary tribunal. where the interest of the consumers concord, a collective action can be brought up either by the consumers association or ngo. the defense of the interest of consumer(s) before an arbitrary body may be individual or collective36. collective defense in arbitration matters are left to be initiated by consumers’ organization or ngo involved in consumers protection37. while individual defense are to be carried or initiated by an aggrieved consumer or his successor38. the call for arbitration by consumers association or ngos could either take one of the two form: it could be preventive or remedial39. a preventive action aims purposely at estopping the occurrence of a dispute which may stem as a result of a clause inserted in the contract by the service providers, contrarily the remedial action seeks to eradicate an already existing dispute. this seems to make sense as a preventive action under the 2011 framework law, is seen as that which seeks to remove the threat of infringement of consumers’ rights40. whereas a remedial action on the other hand, is that initiated to right a wrong which stems from the infringement of the rights of a consumer or group of consumers41. the application of arbitration generally as a dispute resolution mechanism stems from an arbitration agreements. this agreement is usually come through the insertion of an arbitration clauses by the parties in their agreements or by way of an instrument. this agreement between the parties could either be through expressed or implied terms and the arbitration clause may either be in the form of an arbitration clause42 or of submission.43 this logically infers that the arbitration agreement should and must be made either in writing, or in any other form evidencing its existence, in particular, by reference to a document containing the agreement. 2.1.2.1.2 mediation alternatively, the parties’ to contract may decide to go in for mediation in resolving their dispute or mediation might just be the most appropriate option at the behest of the competent state court and the parties thereto invited to adhere to. mediation is one of the out of court methods of dispute settlement. 34 meyer, p. (2002), « droit de l’abitrage », bruylant bruxelles, collection droit uniform africain, 35 calais-auloy (j.). et temple (h), op.cit, spéc.496. 36 section 26(1) of law no 2011/012 of 06 may 2011 on the legal framework of consumers’ protection. 37 section 26 (3) ibid. 38 section 26(2) ibid. 39 section 27(2) ibid. 40 section 27(3) ibid. 41 section 27(4) ibid. 42 the arbitration clause is an agreement whereby the parties agree to submit to arbitration disputes which may arise out of or result from a contractual relationship. 43 the submission agreement is an agreement whereby the parties to an existing dispute agree to settle it through arbitration. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 46 www.americanjournal.org the latter refers to any process, regardless of its name, whereby the parties request a third party to assist them in their attempt to reach an amicable settlement of their dispute, adversarial relationship or disagreement (“the dispute”) arising out of a legal or contractual relationship, or related to such relationship, involving natural persons or legal entities, including public bodies or states44. this therefor connotes that “mediation” refers to the process through which parties in dispute emanating from a legally binding contractual relationship resolve a dispute that must have emanated from such a contract or in connected to the contract, through the use of an appointed neutral third party known as a mediator45. this third party known as “mediator” could either be a natural or a moral person. this seems to make sense as the mediator is defined commonly as a person or an organization, which tries to get an agreement between people or groups who disagree with each other46. the term ‘person’ here could either be moral or physical, but the implication of organization within the definition logically is intended to refer to a moral person so that the former is treated as targeting solely physical persons because organizations generally are bestowed with a moral personality upon their creation. within the ohada, the term “mediator” means any third party requested to carry out a mediation, regardless of the name or profession of this third party in the member state to the treaty concerned47. when there is a dispute emanating as a result of a banking contract, the parties to the dispute may choose mediation for the resolution of their dispute. where this is voluntarily done by the parties, the form of mediation will be conventional. however, if the parties had not settled their mind on such, mediation may be implemented, at the request or invitation of a state court (judicial mediation), of an arbitral tribunal, or of a competent public entity. that said, be it conventional or judicial mediation, the form could either be ad hoc or institutional and it is thus the choice of the latter that determines the applicable law and rules to be applied in resolving the parties’ dispute. the ends of adr could either be fruitful or futile to the parties in dispute. where the resolution meets the aspiration of the parties, the case comes to an end. contrarily, if at the end of the process, a party to the dispute is still unsatisfied, the next best available alternative could be by initiating an action in court. 3. individual action for dispute resolution via court litigations the judicial mechanism of settling consumer’s disputes is by way of a court action brought by the aggrieved consumer. this method generally is used when alternative dispute resolution mechanisms (adr) have failed to provide a concrete solution to the dispute the parties are confronted with. the choice of a court action should and must be properly fitted and file, without which it risk being disqualified for want of action. this brings to mind the fact that the consumer’s action could either be instituted as either a civil or criminal case, or jointly, by attaching a civil claim to a criminal case. 3.1 civil action 44 see article 1(a) of the ohada uniform act on mediation 45bafuke e.n, (2020), the protection of consumers of electronic banking in cameroon, university of dschang, faculty of law and political science, phd thesis p.249, unpublished. 46 oxford dictionary 6th edition, p.733. 47 see article 1(b) of the ohada uniform act on mediation. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 47 www.americanjournal.org a civil action being a noncriminal lawsuits generally aims at repairing the damage suffered by a party to the suite through the attribution of damages, could either be based on the grounds of an action in contract or a tortious liability. 3.1.1 action in contract the primary function of contract law is to secure for each contracting party the benefit of the bargain he has made. so in a breach of contract, the innocent party is entitled to the protection of his expected interest, that is, to be placed in the position he would have had if the contract had been performed48. this is achieved either by a degree of specific performance compelling the defendant to perform or by an award of damages representing the money value of the plaintiff’s defeated contractual expectation. the conclusion of a contract and its performance brings into being mutual obligations to the contracting parties and the violation of which is actionable. hence when the consumer has performed his own obligation(s), it is left for the banker to ensure that he does same. failure by the banker to perform his obligations may lead to a breach of contract which is actionable in a situation where the breach is unlawful. in this situation the consumer’s claim might be for a breach of an implied term of the contract, an action of breach of mandate etc. a breach of contract may be actionable under the following grounds: action for the breach of an implied term of the contract; action linked to the means of payment; actions in cases of irregularities in management of accounts. an epitome of an action of breach of contract could be seen where the bank wrongfully dishonours the customer cheque, the customer may claim damages for breach of contract. a judicial recognition of this view in former west cameroon is afforded by the case of azia anthony v société générale de banque du cameroun (sgbc)49. in that case, the plaintiff who had an account with the defendant bank drew a cheque of 500.000 cfa frs. in favour of one fon mathew n. the cheque was returned unpaid although at the time, he was supposed to have adequate cover in his account. he therefore brought an action against the bank for breach of contract and negligence. it was held that since at the time the plaintiff issued the cheque of 500,000 cfa frs. his account was in credit in the sum of 812.760frs cfa, the bank was in breach of contract by returning the cheque unpaid. when the bank affects an unauthorised payment of the customer’s cheque, the bank is not entitled to debit its customer’s account with the amount involved unless it can plead one of the acceptable defences. if it debits the customer’s account, an action can be brought by the customer against the bank for breach of mandate. an action for wrongful payment of cheque based on the bank’s breach of mandate was successfully brought in the cameroonian case of ngapou alphonse samuel v. biao (cameroon)50. the plaintiff in this case was operating an account with the bamenda branch of the defendant bank. since he was an illiterate, he engaged his brother-in-law named payanda maurice who helped him in running the account. but before any money could be withdrawn, from his account, he had to sign a cheque personally for that purpose as no other person was authorised to do. in due course, a letter purported to have been written by the plaintiff, instructed the bank to transfer money from his account to the account of getral. this letter was not written by the plaintiff but rather by someone else and endorsed by the clerk of the bank. the defendant then debited his account with 41.405.104frs cfa. the plaintiff succeeded in retrieving this sum in an action brought against the bank in the 48 ewan m, (2005), contract law, palgrave macmillan law, 6th edition, new york, npn. 49the unreported judgement of suit n° b/c/ a/47/881. 50 suit n° hcb/65/1988 (unreported). american journal of business management, economics and banking volume 1, june, 2022 p a g e | 48 www.americanjournal.org bamenda high court. it was held in this case that a bank had no right to debit the account of a customer and thereby allow moneys’ to be withdrawn from the customer’s account without the customer’s prior voluntary authorisation in writing and personally signed by him. the prior voluntary authorisation in writing could be by way of cheque, standing order, mandate or any other recognised mode of carrying out the customer’s instructions. another ground of action under contract could be linked to the irregularities in the means of payment. here, the depositors action in case of irregularities in means of payments are aimed at causing the bank to account for any prejudice suffered resulting from the non-respect of conditions for the issuing of the means of payment. the cemac legislator has regulated the conditions for the creation of cheques, and the dispensation of electronic money establishment (eme) as other means of payment. by virtue of article 14(1) of the cemac regulation of 04 april 2003, a cheque form in which any of the compulsory information is lacking is not considered as a cheque except in cases lay down by the law.51 as to other means of payment, they are created by contract between the bank and the depositor or customer and the non-respect of the condition for the conclusion of the said contract is sanctioned by nullity such as with e-banking contracts52. this may be the case where the consent of the depositor is procured by duress, error or fraud. the depositor may take action to set aside the contract based on those vices. however, where the fault does not emanate from the duty imposed by the law but by contract, the banker may be civilly liable based on the general principles of the law of contract. in this case, the condition for civil liability must be satisfied. these require that damages should be established and that there must be a causal link between the damage and the conduct of the e-banking service provider. in addition, the bank should not benefit from any circumstances exonerating it from liability. this generally includes force majeure and fault on the part of the depositor. the courts of cameroon are however always ready to come to the assistance of the customer who discovers an error in his statement of account or passbook. if the bank hesitates to correct the error, the customer can institute an action against the bank. in vicent dango tayong v societe camerounaise de banque (sbc),53 the appellant vicent dango was a customer of the respondent bank. he had a credit balance of 2.124.849 cfa frs. in his account on the 21st of june 1950. since then, he had never asked for a loan or an overdraft from the respondent bank. subsequently, the wrong entry was corrected. these errors may come when a customer’s account had been credited with an amount smaller than that of an item payable to him, or when a customer’s account is debited with an amount larger than that for which he drew a cheque. such irregularities could equally surface where the amount of the customer’s cheque had been fraudulently raised. 3.1.3 actions in torts according to salmond,54 a tort is “a civil wrong, for which the remedy is a common law action for unliquidated damages55 and which is not exclusively a breach of contract or a breach of trust or other 51 a cheque must indicate the place of payment and when it fails, it is payable at the place indicated beside the name of the drawer or where there is no place at all, it is payable at the head office of the bank, see article 14(2) of the regulation of 14 april 2003. 52 medamkam toche (s.j.), la sécurité de déposant dans le système bancaire de la cemac, mémoire de dea, université de dschang, p 57. 53 suit no bca/39/33 (unreported). 54 street (h.), the law of torts, 4th edition, london, butterworth, 1986. 55 this are damages where the amount of money is not certain as in the cases of libel, slander and assault or battery. they arise from wrongs which threaten the injured party’s moral or reputation. unliquidated damages are awarded where a american journal of business management, economics and banking volume 1, june, 2022 p a g e | 49 www.americanjournal.org merely equitable obligations.” distinct courses of action could be brought under an action for tort such as action in defamation; misrepresentation; negligent misstatement. although english law does not recognize the existence of a general duty to disclose information during the process of contractual negotiation, the process of contractual negotiation is not left unregulated. rather a duty is imposed not to make any fake statement of fact or law to the other contracting party and thereby to induce him to enter into the contract. a representation is a statement of fact, express or implied, anterior to the contract, which is intended to and thus includes the person to whom it was made to enter into the contract but is not at its time of making intended a promise, though it may later be incorporated as a term of the contract56.where a customer have been misled, he can plead estopple if he was misled or had reason to be misled for instance by the erroneous balance in his account. the principle was rigorously applied in the case of united overseas bank v tiwan;57 in that case a bank erroneously credited its customers account twice with the amount of a single remittance. the amount involved was substantial and the customer was not expecting any additional payment to one genuinely received for the credit of his account. despite this, he drew on the balance accrued as a result of windfall. thereafter, disputed the banks right to reserve the undue credit entry. it was held that the customer ought to have known that the unduly high balance shown in his account was incorrect. he was not expecting any additional payment of a substantial amount to the credit of his account and he was not entitled to shut his eyes to the facts staring him in the face. in the nutshell, the dispute might have risen on the ground of defamation. defamation is a generic expression representing two types of torts namely libel and slander. libel consists mainly in written material while slander consists in spoken words or gesticulation. gesticulation may take the form of facial mimicry58. in dishonoring a cheque, the banker usually writes on the cheque the reason why the bank cannot honour it. this practice sometimes exposes it to the risk of an action in defamation by the customer, drawer of the cheque. this action in defamation is tortious and damages can be awarded without proof of loss. therefore where a non-trade cannot prove actual loss in an action of breach of contract, it is advisable for him to bring a join action for defamation and breach of contract if they are available. a customer still within the confines of torts could bring an action in conversion. here, the action will be against the collecting bank. the collecting bank’s main risk of liability arises from the collection of a cheque from the wrong party, usually because the drawer’s signature has been forged or because the signatory is an agent or employee who signed without authority or, though being authorized to sign, drew the cheque for his own benefit in fraud for his principal or employer. a bank which receives a cheque for collection for a party having no title to it is by the very act of receipt liable in conversion to the person then entitle to possession of the cheque. in presenting the cheque for payment, the plaintiff claims damages for breach of contract and the court assesses the money value of the loss suffered and grant this as damages. in other words unliquidated damages is an order by the court to a party in breach to pay the sum fixed by the court as compensation to the other party. unliquidated damages can take one of the three forms :substantial damages which is a pecuniary compensation intended intended to put the plaintiff in the position he would have enjoyed had the contract been performed (restitutio in integrum); nominal damages which is a small token awarded where there has been an infringement of a contracted right but no actual lost has been suffered; exemplary damages are damages awarded when the sum is far greater than the pecuniary loss suffered by the plaintiff. 56 goode r.m (1995), commercial law, penguin books, england, 2nd edition, p.112. 57 (1976) t.w.l.r. 1964. 58 see the case of youssoupoff v metrogolwyru meyer pictures (1934) 50 tlr 581. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 50 www.americanjournal.org collecting bank commits a further act of conversion; and having collected the cheque it exposes itself to an alternative claim for money had and received, for the plaintiff has the option of waiving the tort of conversion and suing instead in quasi contract for the proceeds of the property converted. the position is otherwise, of course, where the collecting bank itself acquires an overriding interest as a holder in due course. at common law, the exercise of reasonable care by the collecting bank is no defence to a claim in conversion, for which there is strict liability; and to ameliorate the problem confronting collecting banks a measure of protection was conferred by section 82 of the bill of exchange act 1882 subsequently repealed by the cheques act 1957 and replaced by section 4 of that act. this protection was enhanced by the provisions of the banking act 1979 enabling banks to plead contributory negligence as a defense.59 3.2 action in criminal law the grounds for an action in crime are divided notably under two heads i.e. offences by commission and by omission. the material elements of an offence can be of a positive character (commission) or of a negative character (an abstention or omission). in this light, we distinguish offences by omission and offences by commission. 3.2.1 offences by commission an offence by commission includes: fraud or fraudulent manoeuvres; deception; attempts on the patrimonial integrity of the consumer, offences related to the regulation of prices; publicity bearing false information; failure to execute the contract as per its terms; infringement on the patrimonial integrity of the consumer. offences related to the regulation of prices; offence of usage; false advertisement; lapses or failures in the execution of the contract; action on the breach of the duty of secrecy. the bank is under an obligation to keep its customers affairs silent. the banks duty of secrecy was succinctly enacted by the cameroonian legislator in ordinance no 85/002 of 31 august 1985 relating to the operation of credit establishments and was later on attributed more judicial impetus by its consecration in law no. 2003/004 of 21 april 2003 governing banking secrecy in cameroon. this law in its article 3 indicates that banking secrecy consist of obligation of confidentiality imposed on credit establishments in relation to acts, facts and information concerning their functions. the penal code therefore punishes any violation of the above provision of the law if they are unlawfully carried out. the criminal responsibility of the banker for the breach of the duty of secrecy is a rare phenomenon to come by because; either the banker obeys the duty scrupulously or resorts to amicable settlements if there is breach60. this may be because the penalty for the breach of secrecy may be very heavy and generally has a deterrent effect. in addition, intention which is a fundamental element in the determination of criminal responsibility is not easily proved61. however, if the customer can prove 59 section 47.ordinary contributory negligence is no defense to a claim for conversion (tort (interference with goods) act 1997, s.11 (1)). 60 teissier (a.), (1999), le secret professionnel du banquier, tome 1, aix-marseille, i.s.p.e.c., l.r.d.d., presse universitaires d’aix-marseille, p 135. 61 credot (f.j.), « le secret bancaire » (1993), 21 petites affiches, 8-15, 8. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 51 www.americanjournal.org breach of the duty and that there is no amicable settlement, he can take a criminal action against the bank. it must be mention here that since the breach of the duty of secrecy has no physical act, it may hardly be noticed by third parties62. for this reason, prosecution of the banker may only be done by the customer, who may complain to the legal department or initiate private prosecution63. before the intervention of the cemac legislator, the criminal responsibility of the banker for the breach of the duty of secrecy was anchored on the provisions of the penal code on professional and commercial confidence,64 and the provisions of the 1985 ordinance65. article 42 of the 1992 convention, while re-enacting the provisions of the ordinance, subjects the managers, directors and employees of the banks to the professional confidence, under the conditions lay down by the penal code of the host state. the cameroonian legislator has equally extended the scope and has aggravated the sanction for the breach of banking secrecy. indeed, section 23 of the 2003 law on banking secrecy punishes any person guilty of the offence with imprisonment of three months to three years and or fine of from 1.000.000 cfaf66. the courts may further order the confiscation of the corpus delicti, forfeiture of public functioning relating to the credit establishment, closure of the establishment and or publication of judgment67. in addition to the above sanctions, the banker may incur disciplinary sanctions. another ground on which a consumer could equally bring a criminal action could be on false advertisement. advertisement in cameroon is governed by law no. 2006/018 of december. it is important to note that advertisement is a legal act which involves the use of procedures such as: posting; advertisement in specialized journal and through the media. the aforementioned text requires businesses to carry out advertisements in clear and understandable manner, and advertisement should not contain incorrect information and/or information misleading about the terms under which the consumer uses these services. thus an offence is committed when the financial service provider fails in his obligations by providing information that is misleading and incorrect about the service and the terms under which the consumer uses these services. thus if the advertisement is not done within the limits of the prescription of the 2006 law, such will be treated as false. false advertisement therefore delivers poor information to the consumer as per article 22 of the law of 1990 and its reception in law no 008/mindic/dppm of 07 march 1991 relative to anti commercial practices. false or erroneous advertisement as indicated in article 22 (a) of the 1990 law is that which has as result to induce the consumer into error68. article 14 precisely, considers as false advertisement any advertisement that is susceptible to induce a consumer into making a wrong choice69. false advertisement can be realized by simple and fallacious allegation that aims at attracting consumers. it should be noted that the act of giving false information is considered as an offence and 62 the difficulty stems from the fact that the public may hardly feel the effects and the offender may hardly be caught flagrante delicto like in other offences. 63 the cpc provides for private prosecution in sections 157-158. 64 pc, ss. 310 and 311. 65 section 45. 66 see equally section 310 and 311 of the cameroon penal code. 67 section 28 of 2003 law. 68 “d’induire le consommateur en erreur” la publicité mensongère ou erronée comme l’indique l’article 22a de la loi de 1990. 69 l’article 14 la loi de 1990. considère comme mensongère “faite publicité susceptible de fausser le choix du consommateur”. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 52 www.americanjournal.org is thus actionable. section 32 of the 2011 on consumers protection law puts its succinctly clearly that whosoever gives false information on the quality of technology, goods or services supplied to a consumer shall be punished with imprisonment of from six months to two years or with fine of from 200,000(two hundred thousand) to 1,000,000 (one million) cfa frs., or with both such imprisonment and fine. moreover, restrictive commercial practices that can have any negative effect on consumer’s law such as the abuse of the dominant position, erroneous deceitful or abusive publicity are formerly restricted. in effect, these practices put in peril the patrimonial integrity of the consumer70. these attacks on the patrimonial integrity of the consumer is epitomised through the unjust enrichment of the professional over the impoverishment of the consumer which thus constitutes an offence(s). an offence is an act that is illegal as provided for by penal law. hence for there to be an offence, it suffices that a prohibition or an injunction of the penal law has not been respected. these offences include: offences on the regulation of prices; offences related to the practice of prohibited sales. an aggrieved consumer could equally base his action on the offence of usage. article 9 of the 201171 law provides that “concerning the granting of loans to consumers for the supply of technology goods and services, the supplier or service provider must inform the consumer in writing about the cash price, interest amount, interest rate on arrears, number of installments, frequency and periodicity of such installments and total amount payable”. failure to respect this provision of the law is punishable as per article 325 of the penal code. this article provides as follows “any lender demanding or taking interest or any other reward higher than the rate fixed by law for loans of the kind in question shall be punished with fine from five thousands to one million francs”72. on a subsequent conviction within the meaning of section 88 of this code, the penalty shall be imprisonment for from fifteen days to one year and the fine shall be doubled. 3.2.2 offences by omission. an omission supposes a voluntary abstention. the professional has as of duty to provide the consumer with absolute information, concerning the contract. however, this is not his sole obligations, as he also owes consideration to the consumer. hence when the consumer fulfils his obligation in the contract, the banker (professional) has to do same. when the professional fails to inform the consumer, he will be held responsible for an offence of omission to inform. in like manner, when he fails to give his consideration, he can be held responsible for committing an offence of omission to consideration. most often than not, offences by omission are link to pre contractual information within the banking sector. these offences are linked to the duty to inform and to the execution of a banking contract. amongst the principles of the consumer protection, the principle of information is of fundamental importance. the latter presupposes that consumers have the right to access to information which is necessary to help them make a good choice during any transaction. thus there is information which is preliminary; information prior to conclusion of an e-banking contract; and information during the execution of the said contract. in effect, every supplier of banking services, must supply the consumer with reliable and truthful information in the two official languages (english and french).this information must respect the following criteria; it must be: adequate; clear and legible (readable).this 70 paragraph one of article 8 of law no 2011/012 of 6th may 2011 on the legal frame work on consumers protection. 71article 9 of law n° 2011/012 of 6may 2011 on the legal framework on consumers protection. 72 section 325 (1) of the cameroon penal code. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 53 www.americanjournal.org information provided must be in line with the kind of services offered by the bank and most especially details of the precise service the customer is in need of. this is to enable the customer to make an adequate and reasonable choice before the conclusion of the contract. it is important to note that the above mentioned criterion must be taken into account most especially in advertisement. hence, every advertisement intended for consumers of banking services must be in conformity with the laws in place in the domain of advertisement73. the information given to the consumer is to permits him grant a clear consent on the subject matter. a consumer can thus bring an action on the grounds of either false advertisement leading him to consent or again, his action could be based on failure in the execution of the contract by the professional. information in consumer’s law is very fundamental. it has to be clear and explicit. that is why the 2011 legislator makes it clear in article 1374 that “each technology, good or service supplier or provider must provide the consumers with correct, adequate, clear and legible information, in english and french concerning the goods and services offered to enable him make appropriate and rational choices before concluding a contract. in fact the customer shall have the right to obtain from the financial service provider in writing or another durable medium, free of charge, information data and instructions relating to his contractual relationship with the provider, in the manner and within the terms specified by the agreement. this same position is reechoed in article 3(c) of the general principle of consumer protection. based on the aforementioned, it is thus obvious that every supplier of a service in cameroon is required as an obligation to supply the consumer with information in english and french. the conflict between consumers and professionals stems from an inequality in information. e-banking service providers know best the services put on the market while most consumers are incapable to judge and to compare these services themselves. the right to information has become a major and sensitive theme for the defense of consumers. hence, he who fails to satisfy this obligation to information will be held responsible for fraud, misrepresentation and will be susceptible to punishments provided for by the penal code. 4. conclusion the above analysis has unravelled the legal procedure(s) available to the consumers of the banking sector to advocate for their rights either collectively or individually when ever they feel cheated by the professionals of the sector. this legal mechanisms have acted within the last decade as a catalyste to slow down the rampant disputes and acts of consistent violation of customers rights within the banking system. however, with the advent of the e-banking and the prolifiration of new actors in the provision of banking services, much is still required to be done to protect the rights of consumers. this is so because this new wind of technology has not only come with new challenges which could be contained by existing legal redress mechanism but has even made complex the situation because of the systematic difficulties to identify the criminal(s) behind the curtins to attribute liability and claim damages. despite these modern day challenges, it would be all misleading and erronuous to affrim the inefficiency of the available legal redress mechanisms in the face of this new form of banking as the 73 see law no. 2006/018 of december, 29th 2006 governing advertisement in cameroon. 74 law no. 2011/012 of 6th may 2011 on the legal frame work of consumer protection in cameroon. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 54 www.americanjournal.org available legal mechanisms have stifle, mitigated and made difficult the activities of most of those draining consumers of their resources. hence the available recourse to consumers as of now is to take refuge in the available legal depensation and dispute resolution mechanisms to resolve their disputes and differences with the professionals of the sector. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 8 www.americanjournal.org саноат корхоналарида солиқларнинг рағбатлантириш функциялари бекзод атамуродов кадастр агентлиги ходими a b s t r a c t k e y w o r d s мақолада саноат корхоналарида солиқ имтиёзлари берилиши, уларнинг солиққа тортишнинг ўзига хос хусусиятлари, ҳукуматимиз томонидан олиб борилаётган ислоҳотлар, саноат корхонларнинг давлат бюджетига нисбатан таъсири, шунингдек, енгил саноат корхоналарга берилаётган имтиёзлар туфайли солиқ юкини камайтириш ёритилган в статье рассмотрены налоговые льготы для промышленных предприятий, их особенности налогообложения, реформы, проводимые нашим правительством, влияние промышленных предприятий на государственный бюджет, а также снижение налогового бремени за счет льгот, предоставляемых предприятиям легкой промышленности. . the article discusses tax incentives for industrial enterprises, their features of taxation, reforms carried out by our government, the impact of industrial enterprises on the state budget, as well as reducing the tax burden due to benefits provided to light industry enterprises. мамлакатимизда бoзoр мexaнизмини ривoжлaнтиришда энг сaмaрaли вoситaлaрдaн бири хўжалик юритувчи субъектларда, шу жумладан, саноат корхоналарида сoлиқ юкини пасaйтиришгa йўнaлтирилгaн сoлиқ имтиёзлaри тизими бўлиб, бунинг учун сoлиққa тoртиш мexaнизмини тaкoмиллaштириш, унгa тaъсир этaдигaн сaлбий ички вa тaшқи oмиллaрни минимaллaштириш зaрур масалалардан биридир. мамлакатимизда саноат корхоналарини модернизациялаш, техник ва технологик жиҳатдан қайта жиҳозлашга катта эътибор қаратилмоқда. бундан асосий мақсад тизимни рақобатбардош ва экспортга йўналтирилган маҳсулот ишлаб чиқариш имконини берадиган янги технологиялар билан таъминлашдир. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 9 www.americanjournal.org бунинг натижасида ишлаб чиқарилаётган маҳсулотларга ички ва ташқи бозорда талаб ортиб боради. бунда эса солиқ имтиёзларининг иқтисодий аҳамияти каттадир. aйни пaйтдa, мaмлaкaтимиздa тaдбиркoрликни ривoжлaнишигa тўсқинлик қилаётган oмиллардан бири, бу бизнeсдa бир оз бўлсада сoлиқ юкининг юқoри дaрaжaси ҳисoблaнaди. бозор иқтисодиёти шaрoити ҳамда юқoри xaвфxaтaрлaр мавжуд шaрoитдa инвeстиция вa иннoвaциoн ривoжлaнишнинг энг кучли вoситaлaридaн бири бу xaвфлaрни қoплaш учун eтaрли сoлиқ имтиёзлaри тизимини ярaтишдир. ҳукуматимиз томонидан ички талабни рағбатлантириш ва рақобатбардош саноат маҳсулотларини ишлаб чиқаришни кенгайтириш, иқтисодиёт тармоқларини диверсификация қилиш ва уларнинг молиявий барқарорлигини оширишга қаратилган чора-тадбирлар қўлланилиши натижасида саноат маҳсулотлари ишлаб чиқариш ҳажми 2021 йилда 14,0 фоизга ошиб, ялпи ички маҳсулот (яим) таркибида саноатнинг улуши 25,8 фоизни ташкил этди. 2021 йилда январь-декабрь ойларида саноат маҳсулоти ҳажми 189 606,8 млрд.сўмни ёки ўтган йилнинг тегишли даврига нисбатан саноат ишлаб чиқариш ҳажми индекси 123,8 фоизни ташкил этди. кейинги йилларда мамлакатимиз президенти томонидан саноат корхоналарини ривожлантириш, хўжалик юритувчи субъектларга нисбатан солиқ имтиёзларини бериш ҳамда солиқ тўловчиларга рақобат муҳитини яратиш борасида сезиларли ишлар амалга оширилмоқда. жумладан, юртимизда енгил саноат соҳасини ривожлантириш мақсадида бир қатор солиқ имтиёзлари берилди. ўзбекистон республикаси президентининг 2019 йил 16 сентябрдаги “енгил саноатни янада ривожлантириш ва тайёр маҳсулотлар ишлаб чиқаришни рағбатлантириш чора-тадбирлари тўғрисида”ги пқ-4453-сонли қарорига асосан 2020 йил 1 январдан бошлаб: ҳисобот даври натижалари бўйича ялпи тушумнинг умумий ҳажмида тайёр тикув-трикотаж маҳсулотларининг экспорти 60 фоиздан кам бўлмаган экспорт улушига эга бўлган корхоналар 2023 йил 1 январга қадар мол-мулк солиғини тўлашдан озод этилди; тўқимачилик, тикув-трикотаж, чарм-пойабзал ва мўйначилик соҳалари корхоналарининг фойда солиғи бўйича солиққа тортиладиган базаси етти йил давомида тенг улушларда замонавий тозалаш ва канализация иншоотларини қуриш бўйича харажатлар суммасига камайтирилди; шунингдек, мазкур ҳужжат билан чорва молларини сўйиш бўйича замонавий автоматлаштирилган мажмуаларни ишга тушираётган ташкилотлар ва терини қайта ишловчи корхоналар 2023 йил 1 январга қадар ер солиғи тўлашдан озод этилди; “ўзтўқимачиликсаноат” ва “ўзчармсаноат” уюшмаларининг хорижий консультантлари, шунингдек, тўқимачилик, тикув-трикотаж, чарм-пойабзал ва мўйначилик соҳалари корхоналарида меҳнат фаолиятини юритаётган хорижий мутахассислар ўзбекистон республикасидаги даромад манбалари бўйича жисмоний шахслардан олинадиган даромад солиғини унинг белгиланган ставкасидан 50 фоиз миқдорида тўланиши ушбу қарорга белгилаб қўйилди. бундан ташқари, мамлакатимиз президентининг «2022 2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси тўғрисида»ги фармони мувофиқ, ҳудудларни комплекс ижтимоий-иқтисодий ривожлантириш, аҳолини ижтимоий ҳимоя қилиш ва турмуш даражасини ошириш, тадбиркорликни ривожлантириш, ҳуқуқбузарликларнинг олдини олиш american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 10 www.americanjournal.org билан боғлиқ қатор устувор вазифалар белгилаб берилган. шу асосда амалга оширилаётган кенг кўламли бунёдкорлик ва эзгу ишлар юртдошларимизда шукроналик ҳисини уйғотди. шунингдек, ўзбекистон республикаси президентининг 2012 йил 10 апрелдаги “тўғридантўғри хорижий инвестициялар жалб этишни рағбатлантиришга оид қўшимча чора-тадбирлар тўғрисида”ги пф-4434-сонли фармонига мувофиқ, хорижий инвесторлар ва хорижий инвестициялар иштирокидаги корхоналар учун кенг кўламдаги кафолатлар, имтиёзлар ва афзалликлар тизими яратиб берилди. жумладан, қайд этилган қарорга асосан солиқ имтиёзлари тўғридан-тўғри хусусий хорижий инвестицияни жалб қилувчи корхоналарга қуйидаги муддатларга татбиқ этилди: хусусан, 300 минг ақш долларидан 3 млн ақш долларигача бўлган ҳажмдаги тўғридан-тўғри хусусий хорижий инвестицияларга – 3 йилгача; 3 млн ақш долларидан 10 млн ақш долларигача бўлган ҳажмдаги тўғридан-тўғри хусусий хорижий инвестицияларга – 5 йилгача; 10 млн ақш долларидан юқори – 7 йилгача. ўзбекистон республикаси солиқ кодексининг 473-моддасига асосан махсус иқтисодий зоналарнинг иштирокчиларига киритилган инвестициялар ҳажмига қараб, саноат корхоналари мол-мулк солиғидан, ер солиғидан ва сув ресурсларидан фойдаланганлик учун солиқдан ўзбекистон республикаси президентининг қарори билан белгиланган муддатга озод қилиш тарзида солиқ имтиёзлари берилди. шу билан биргаликда, мамлакатимиз раҳбарининг 2022 йил 26 февралдаги “чарм-пойабзал ва мўйначилик соҳаларида тайёр маҳсулот ишлаб чиқаришни қўллаб-қувватлашга доир қўшимча чора-тадбирлар тўғрисида”ги пқ-143-сонли қарорига мувофиқ, чарм-пойабзал, мўйначилик соҳаси корхоналари ва чорва молларини сўйиш ва терини қайта ишловчи ташкилотлар учун кўзда тутилган солиқ ва божхона тўловлари бўйича имтиёзларни 2023 йил 1 январдан 2026 йил 1 январга қадар узайтириш белгиланди. ушбу қарорга асосан 2022 йил 1 апрелдан 2025 йил 1 январгача қуйидагилар учун ижтимоий солиқ ставкасини 1 фоиз миқдорда ундириш жорий этилди: ишлаб чиқарувчининг ялпи тушумида болалар, аёллар ва спорт пойабзаллари, сунъий (эко) чарм, фурнитура, пойабзал қолиплари ва тагликлари ишлаб чиқаришдан тушган тушумнинг улуши ҳисобот даври якуни бўйича камида 60 фоизни ташкил қилган ишлаб чиқарувчилар; ялпи тушумининг умумий ҳажмида пойабзаллар, чарм-атторлик маҳсулотлари ва мўйнадан тайёрланган буюмлар экспортидан тушган тушумнинг ҳажми 80 фоизни ташкил қилган ишлаб чиқарувчилар; хулоса ўрнида шуни айтишимиз мумкинки кичик ва ўрта бизнесни ривожлантириш, саноат корхонларини ривожлантириш ва уларга рақобат муҳитини яратиб беришда солиқларнинг ўрни ва аҳамияти катта ҳисобланади. хўжалик юритувчи субъектларга берилаётган солиқ имтиёзлари эса нафақат ўзларининг ривожланишига балки мамлакатимизда бўлаётган мавжуд муаммоларни ечишига замин яратади. бу эса ишсизликнинг камайишига, бюджет даромадларининг ошишига, аҳолини қатламини ижтимоий-иқтисодий юксалишига олиб келади. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 11 www.americanjournal.org фойдаланилган адабиётлар рўйхати 1. ўзбекистон республикаси солиқ кодекси. lex.uz сайти 2. ўзбекистон республикаси президентининг 2019 йил 16 сентябрдаги “енгил саноатни янада ривожлантириш ва тайёр маҳсулотлар ишлаб чиқаришни рағбатлантириш чора-тадбирлари тўғрисида”ги пқ-4453-сонли қарори. 3. ўзбекистон республикаси президентининг «2022 2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси тўғрисида»ги фармони. 4. ўзбекистон республикаси президентининг 2012 йил 10 апрелдаги “тўғридан-тўғри хорижий инвестициялар жалб этишни рағбатлантиришга оид қўшимча чора-тадбирлар тўғрисида”ги пф-4434-сонли фармони. 5. norma.uz ва soliq.uz сайтлари. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 33 www.americanjournal.org modern methods used in risk management by commercial banks axtamov sharof axtam o‘g‘li jizzakh hkxkm director of operational activities of jsc “aloqabank”, uzbekistan, tashkent city. e-mail: sharof.axtamov@aloqabank.uz a b s t r a c t k e y w o r d s the article contains information about the modern methods that can be used in the risk management of commercial banks of the republic of uzbekistan and the types of risk they are used in. risk, credit risk, fraud risk, operational risk, market risk, liquidity risk, cyber security risk, reputational risk, artificial intelligence, machine learning, deep learning, natural language processing, intelligent document processing, big data analytics. introduction as the world becomes increasingly digital, organizations are forced to adapt their systems and processes to reduce costs and increase speed. banks are on the verge of adopting new technologies such as artificial intelligence (ai) and machine learning to reduce fraud and improve the quality and efficiency of customer service. in the article, we consider the use of artificial intelligence and other automation technologies related to risk management in banking networks. 2. literature review local and foreign scientists have conducted a number of researches and developed scientific literature on risk management in commercial banks. in the scientific works of foreign economists joyol bessis [1], anthony saunders and marcia millon cornett [2], andrea resti and andrea sironi [3], the risks that may arise in commercial banks and their management have been studied. philipp harle [4], andras havas and hamid samandari, a. ghosh, m. crouhy, d. galai, r. marklar [5] also conducted research on effective risk management methods in their research. 3. research methodology in the research process, general logical (induction, deduction, analysis and synthesis, analogy, generalization) and specific scientific (comparison, grouping, statistical analysis and economicmathematical) methods were used. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 34 www.americanjournal.org 4. analysis and discussion of results the bank is constantly exposed to various risks, the most common of which are: figure 1. types of risks that may arise in the activity of commercial banks [6] the financial services sector typically deals with large volumes of data – the volume of which has grown exponentially in recent years and is expected to grow further in the future. it is estimated that in 2020, each person created an average of at least 1.7 mb of data per second; by 2025, society around the world is expected to generate 463 exabytes of data every day. these large, complex data sets contain insights that banks can use to develop more accurate risk models, improve decision-making, and identify suspicious activity or transactions in real time. however, people themselves do not have the ability to accurately analyze this amount of information. as a result, banks american journal of business management, economics and banking volume 15 august, 2023 p a g e | 35 www.americanjournal.org are turning to technology to efficiently process large volumes of data and improve customer experience to improve decision-making, reduce risk and identify key insights. artificial intelligence (ai): ai uses algorithms to analyze large, complex data sets, identify patterns, and predict outcomes. this helps banks effectively mitigate risk by identifying suspicious or anomalous activity that may indicate fraud. machine learning (ml): ml is a form of intelligent automation that uses models to analyze existing data and accurately predict outcomes based on patterns. ml algorithms can be used to process large amounts of data, identify correlations, calculate risk, and inform decision-making. deep learning. deep learning uses neural networks to study large data sets. unlike ml, which uses predefined models to identify patterns, neural networks in deep learning tools use reasoning, mimicking the behavior of the human brain, to detect patterns or anomalies. in the banking industry, deep learning is used to more accurately calculate credit risk for loan or credit card applicants, as well as to identify trends or predict events that may affect the creditworthiness of an entire group. natural language processing. nlp is a type of ai that allows computers to "read" text and make sense of it. in the banking industry, organizations can use nlp to extract relevant information from structured or unstructured data sets. this can significantly increase the speed at which banks process applications, open new accounts, handle customer service inquiries, onboard new employees, or perform other tasks that require the organization to collect and synthesize text-based data. intelligent document processing. idp is a form of intelligent automation that uses advanced technologies to extract semi-structured or unstructured data from files and transform them into structured, usable data. intelligent document processing allows enterprises to eliminate manual data processing tasks, which significantly improves processing time, reduces costs and eliminates errors. big data analytics: banks use special technological tools to analyze large data sets to identify patterns, correlations and market trends. while these tools don't necessarily take advantage of ai capabilities, the technology allows banks and their it teams to better understand and mitigate risk. there are several ways that ai and related technologies can enable banks to identify and mitigate risk in a more efficient and timely manner. these include: 1. fraud detection. fraud detection in loan applications: ml algorithms help banks detect discrepancies in loan applications. in today's digital society, fraudsters steal fake personal information to submit credit applications. without the help of ai or ml-enabled models, banks may struggle to find a balance between quickly processing applications and ensuring the accuracy of their documents [7]. real-time transaction fraud detection: manual fraud detection systems that rely primarily on human analysis are no longer a practical or effective solution for tracking digital transactions in today's environment. ai-based risk management tools and techniques offer organizations real-time data analysis, allowing them to block potentially fraudulent transactions or require verification before proceeding. ai or ml models are expected to become more intelligent over time when it comes to fraud detection in transactional processes, such as in the lending process. that is, as the models receive more data, the possibilities of their analysis become more accurate, and the occurrence of errors in the system decreases over time [8]. 2. regulatory compliance management. compliance with national and international regulations is a very important and complex activity in the financial sector. it is necessary to review large data sets, analyze many variables, and provide accurate documentation to the appropriate authorities. machine american journal of business management, economics and banking volume 15 august, 2023 p a g e | 36 www.americanjournal.org learning (ml) automates these activities and ensures that they are performed efficiently and accurately. this allows banks to optimize resources and save significant costs in the form of fines or penalties. ml technology can also reduce the number of false alerts in the compliance system, ensuring that issues are only manually processed by a human when necessary [9]. 3. credit risk modeling. banks use ai, ml and deep learning to assess each person's individual credit risk. these models and neural networks use a variety of data, including personal data, an individual's existing assets, historical behavioral data, as well as external factors and trends that may affect the ability to repay the loan. uses. 4. prevention of insider threat. ai and related tools and technologies are also used to monitor the activities of traders and other financial professionals to detect early signs of fraud, insider trading, data theft or other financial crimes and violations. ai-enabled tools can log, monitor and analyze phone logs, email traffic, vacation schedules, and alert the organization to potential risks and misconduct. 5. conclusions and suggestions the use of artificial intelligence in financial risk management opens up a number of key benefits for the banking industry, including: • reduce operating costs and increase efficiency through process automation and resource optimization; • improve compliance through automated monitoring and reporting; • timely, accurate and individual risk assessment and credit risk scoring through advanced data analysis; • reduce the possibility of human error by automating the process; • to improve the quality of service through individualized treatment of customers based on information. currently, artificial intelligence is increasingly developing and entering every area of our life. it is expected that this system will be widely used in the global banking system in the near future. by integrating artificial intelligence into the banking system, it can prevent or minimize the risks that may be encountered in banking activities. the more accurate information these systems have, the more efficient they are and the fewer errors there are [10]. 6. literatura/reference 1. prof. joёl bessis “risk management in banking”//june 29, 2015// wiley 4th edition. p-8. 2. professor anthony saunders and professor marcia millon cornett “financial institutions management”// february 9, 2017// mcgraw hill; 9th edition. p10. 3. andrea resti and andrea sironi “risk management and shareholeders’ value in banking. 2007. john wiley & sons, ltd. p277. 4. philipp harle, andras havas and hamid samandari “the future of bank risk management”//july 22, 2016//mckinsey.com 5. a.ghosh. managing risks in commercial and retail banking; john wiley&sons: hoboken, nj, usa, 2012. 6. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. 7. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 37 www.americanjournal.org 8. butaev j., radjabov u. conceptual foundations of improving the tax system problems and solutions //trans asian journal of marketing & management research. – 2021. – т. 10. – №. 4. – с. 91-98. 9. inatilloevich j. b. current situation of the stock market of the republic of uzbekistan //conferencea. – 2023. – с. 1-4. 10. bakhtiyarovich o. b. the role and significance of the regional investment environment in attracting foreign investments to the economy //conferencea. – 2023. – с. 5-8. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 101 www.americanjournal.org an economic study of the items of production and marketing costs for the orange crop in salah al-din governorate for the production season (2022) balad district as a model)) amna hamid mayouf amnahamed.f@gmail.com dr. firas ibrahim arhim tikrit university agricultural economics and extension / agricultural economics firas.ibrahim@tu.edu.iq a b s t r a c t k e y w o r d s the main objective of the study of the orange crop is to identify the most important marketing functions from the producer until reaching the final consumer, and to estimate the marketing costs of the orange crop in the area under study for the year (2022), where a stratified random sample consisting of (65) farmers from the district’s farmers was selected. information related to the study through a questionnaire designed for farmers, and then collecting information on wholesale markets through a questionnaire number (35) distributed to wholesale market traders, while information on retail markets was also collected through a questionnaire number (35) distributed to retailers, as the share of the producer, wholesaler, and retailer of the consumer’s dinars of the orange crop, respectively, was about (77.47%), (16.21%), (6.30%). the marketing costs for each of the producer, the wholesaler, and the retailer, respectively, amounted to (28.100, 44.9, and 21.86 dinars / ton). we conclude from this that the high marketing costs cause lower profits. we conclude from this and recommend the study to give sufficient importance to scientific research and intensify studies related to the orange crop such as production, its costs, and marketing. it recommends the need to develop integrated strategic plans for agricultural marketing, which begins before production and purchase of seedlings, and ends with the arrival of the product from standard premiums to the final consumer. economic study, production costs, marketing costs, orange crop, cost analysis. introduction: fruits are distinguished by their diverse varieties, attractive shapes, appealing colors, and delightful flavors. however, due to the lack of awareness among fruit crop farmers in salahaddin, there is a challenge in effectively marketing fruits. this makes understanding fruit marketing in salahaddin american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 102 www.americanjournal.org essential for delivering products in the desired manner, meeting the preferences of local markets and consumers, and achieving comparable qualities to foreign products in terms of sorting, grading, processing, and pricing based on quality. since salahaddin is renowned for its extensive fruit cultivation, and considering the significant production capacity, an applied model was selected to study the marketing of oranges, a desirable fruit with high consumer demand. oranges are vital fruits due to their content of vitamin c, b1, b2, and citric acid, possessing significant medicinal value for treating various ailments. moreover, they are employed in numerous food industries, and their leaves are used in perfumes and cosmetics due to high concentrations of essential oils. professor philip kotler, a marketing expert, defines marketing as a managerial and societal process through which individuals and groups obtain desired products by exchanging valuable offerings with others. he emphasizes its role as a key to achieving organizational goals, involving understanding market needs and obtaining satisfaction more effectively than competitors (al-ruba'i, 2012, p. 14). research methodology: research problem: there exists a clear discrepancy between the selling price of a product and the price paid by the consumer. this is primarily due to elevated marketing costs and profit margins, burdening both the consumer and the producer. thus, this study aims to explore this issue and address significant marketing obstacles. research objectives: this research aims to study: 1. the current status of orange marketing in salahaddin province. 2. the economic study of production and marketing costs for orange crops. research significance: the significance of this research lies in understanding the importance of fruit marketing for regions like salahaddin and iraq. this includes addressing obstacles and difficulties in efficiently delivering studied fruits to end consumers with minimal time and cost. research hypothesis: the study hypothesizes that there is a considerable weakness in the actual marketing functions due to high costs and a lack of proper grading and sorting of fruits marketed to wholesale markets, negatively affecting these products. data sources: data was collected through field visits to fruit markets in the studied region, specifically in salahaddin province. additionally, questionnaires were distributed to various market levels, including farmers, wholesale traders, and retail traders. a total of 65 questionnaires were gathered from crop farmers, 35 from wholesale traders, and 35 from retail traders. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 103 www.americanjournal.org agricultural marketing: agricultural marketing is a branch of agricultural economics that encompasses economic knowledge facilitating individuals in obtaining optimal marketing services for agricultural goods. this aids in efficiently transferring goods and agricultural products from producers to consumers with minimal costs (suwaidan & haddad, 2003, pp. 32-33). characteristics of marketing: key characteristics defining contemporary marketing in organizations include its comprehensive, integrated, economic, and social nature. marketing involves a range of activities, benefits multiple parties through exchange, necessitates scientific planning, is continuous and dynamic, and isn't confined to for-profit entities (al-ruba'awi, 2015, p. 32). marketing costs: marketing costs encompass expenses related to marketing services and operations, such as transportation, storage, sorting, grading, assembly, and sales, both wholesale and retail. these costs also include wages of intermediaries and various marketing-related charges (al-daheri, 1980, 199). marketing costs differ from marketing differentials and margins. marketing differentials refer to the difference between the selling and buying price of a specific good, while marketing costs are part of marketing margins (moosaa, 1998, pp. 184-185). cost divisions: costs are divided into several categories: 1. fixed costs: these costs remain constant regardless of the quantity of units marketed or sold. examples include employee salaries and store rents. 2. variable costs: these costs vary with the quantity of goods. examples include labor wages, employee salaries, and interest rates. 3. social costs: these costs are diverse and often unquantifiable. they include the consumer's time spent in search and transportation of goods and the stress associated with the process. these are the key points from the provided text. if you need more detailed information or a continuation of the translation, please let me know. ( يوضح متوسط التكاليف المتغيرة لزراعة دونم واحد من محصول البرتقال في 1جدول ) محافظة صالح الدين/ قضاء بلد . relative importance )%( cost per dunum (dinar) variable cost items 6.28 55.33 land plowing and preparation 19.95 175.56 hired labor 21.18 186.52 pesticides 16.52 145.46 fertilization 6.95 61.22 fuel and oils 9.83 86.53 maintenance and pruning 2.41 21.23 water and electricity costs 11.07 97.46 transportation costs 4.50 39.63 harvesting and cleaning costs 1.31 11.500 other costs 100 880.44 total source: prepared by the researcher based on the questionnaire form (1 .) american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 104 www.americanjournal.org table (2) illustrates the average fixed costs for cultivating one dunum of orange crop in salah al-din governorate / qadhaa balad for the production season 2022. fixed cost components: cost per dunum (dinar) relative importance )%( family labor 156.700 24.07 land rent 4.800 0.74 depreciation 489.55 75.19 total 651.05 100 source: prepared by the researcher based on the questionnaire form (1 .) table (3) illustrates the calculation of average yield per hectare (donum) . total average production: tons total average area: dunums average yield: production / total area 111.95 4.892 22.88 source: prepared by the researcher based on the questionnaire . table (4) displays the total costs per hectare and per ton of oranges for the production season of 2022. components of total costs cost per dunum (iqd/dunum) cost per ton (iqd /ton) cost per kilogram (iqd /kg) relative importance (%) variable production costs 880.44 38480 384.80 57.48 fixed production costs 651.05 28454 284.54 42.52 total 1531.49 66934 669.34 100 source: compiled and calculated by the researcher. table (5): estimation of marketing costs for orange crop producers during the agricultural season (2022). components of marketing costs value • relative importance (%) transportation cost 18000 64.06 packaging and grading cost 1800 6.41 unloading and loading cost 4500 16.01 auction entry fee cost 3800 13.52 total 28100 100 source: calculated by the researcher based on the questionnaire obstacles and challenges facing orange producers in marketing operations in salahaddin governorate / balad district for the 2022 production season: through the questionnaires distributed to the farmers, they were asked about the most prominent obstacles and challenges they face, which were characterized as follows: 1. limited wholesale prices. 2. the abundance of imported oranges when the local product is available. 3. competition among farmers and price reduction. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 105 www.americanjournal.org 4. increase in prices of fertilizers and pesticides. 5. increase in transportation and fuel prices. table (6) marketing costs and their relative importance for wholesale traders for orange crop in salah al-din governorate / qadaa balad for the production season 2022 . marketing costs categories value • relative importance (%) 1. permanent employee wages costs 14.300 31.85 2. loading costs 6300 14.03 3. shop rental costs 9800 21.83 4. unloading costs 5,500 12.25 5. water and electricity costs 1.80 4.00 6. other wages costs 7,200 16.04 total 44.9 100 total in dinars per kilogram 44.9 source: prepared by the researcher based on the questionnaire form (2 .) • the main obstacles and challenges facing wholesale traders: these problems and obstacles were identified through the questionnaire survey. 1. debts and deferred payments to some retailers. 2. price monopolization by dominant wholesale traders. 3. lack of a formal market in the study area. 4. congestion and security checkpoints that increase transportation costs and difficulties. table (7) illustrates the total marketing costs incurred by the retailer for the orange crop . marketing costs categories value (iqd/kg) • relative importance (%) transportation costs 10.600 48.49 unsold quantities costs 0.200 0.92 in-shop incurred costs 11.06 50.59 total retailer marketing costs per kilogram 21.86 100 total retailer marketing costs per ton 21.86 source: prepared by the researcher based on the questionnaire form (2 .) the major obstacles and challenges facing retail traders: 1. poor transportation due to road conditions. 2. high number of imports when local products are available, leading to a decrease in local product prices. 3. wholesale traders monopolizing prices, negatively affecting retail traders. 4. lack of refrigerated storage and cooling facilities. 5. limited access to refrigerated storage and cooling facilities. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 106 www.americanjournal.org table (8) shows the distribution of shares among the producer, wholesaler, and retailer from the consumer's dinar. the crop the prices: dinars per kilogram distribution of consumer dinars (%) farm wholesale retail share of farmers (4) % share of wholesaler (5) % share of retailer (6) % orange 860 930 1110 77.47 6.30 16.21 source: calculated and compiled by the researcher based on the questionnaire forms (1, 2, 3). 1. farmer's share (4) = (farm price / retail price) × 100 2. wholesaler's share (5) = ((farm price wholesale price) / retail price) × 100 3. retailer's share (6) = ((wholesale price retail price) / retail price) × 100 table (9) illustrates the relative importance of the components of the marketing margin between the product price and the consumer price . the crop marketing margin (dinar per kilogram) relative importance of marketing costs for the product (%) relative importance of marketing costs for wholesalers (%) relative importance of profits for wholesalers (%) relative importance of transportation costs for retailers (%) relative importance of marketing costs incurred by retailer at his shop (%) relative importance of retailer's profits (%) orange 250 11.24 17.76 28 0.08 4.42 72 source: compiled by the researcher . 1. the relative importance of total profits for wholesalers occupied the first rank, with a marketing margin of 28%. 2. the second rank was taken by the relative importance of total costs borne by retailers, which amounted to approximately 4.42%. 3. the third rank was held by the relative importance of costs borne by the producer, estimated at 11.24%. 4. the fourth rank was occupied by the relative importance of costs borne by wholesalers, averaging 17.76%. retailer's profits had the lowest relative importance, amounting to 0.72% of the marketing margin between the product price and the consumer price, representing retailer profits. conclusions: based on the obtained results and the collected data through the questionnaire for each stage of the marketing channels for oranges during the production season of 2022, the study drew several conclusions, including: american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 107 www.americanjournal.org 1. marketing costs for both the producer, wholesaler, and retailer were 28.100, 44.9, and 21.86 jd/ton respectively. this indicates that higher marketing costs lead to decreased profits. 2. the producer's share of the consumer price reached about 77.47%, indicating efficient marketing of the orange crop within the study sample. a higher producer share indicates a more efficient marketing system. 3. wholesalers' total profits held the highest relative importance, accounting for 28% of the marketing margin. the relative importance of total costs borne by retailers was about 4.42%, while costs borne by the producer were estimated at 11.24%. wholesalers' costs held an average of 17.76%, and retailer's profits held the lowest relative importance at 0.72%. recommendations: 1. it's crucial to develop integrated strategic plans for agricultural marketing that start before production, encompassing the purchasing of seedlings, and continue through product delivery to the final consumer. 2. implement taxes on imported crops, particularly during the local production season, and restrict importation to stabilize prices and ensure production continuity. 3. the government should improve roads and transportation infrastructure, facilitating the movement of products to reduce obstacles and additional costs. 4. establish standardized, globally-compliant model markets and increase the number of wholesale markets to mitigate the power of monopolies and price control within the markets, while providing high-quality cold storage facilities. sources: 1. rabaei, youssef abd rashid (2012), "marketing costs", university of science and technology, sanaa, first edition. 2. sweidan, nazim moussa, and haddad, shafiq ibrahim (2003), "contemporary marketing concepts", dar al-hamid for publishing and distribution, amman, jordan. 3. rabiaawi, saadoun hamoud et al. (2015), "supply chain marketing", first edition, dar ghaida for publishing and distribution, amman, jordan. 4. moussa, murad zaki, and al-muqri, amer al-vittori (1998), "principles of agricultural marketing", management of publications and publishing, university of al-fateh tripoli, great jamahiriya. 5. yassin, mahmoud mohamed, and abdul aziz, ali mahmoud (2008), "introduction to agricultural marketing science", al-rawda printing house, damascus, syria. 6. food and agriculture organization (fao), (http://www.fao.org/faostat/en/#data/). american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 1 www.americanjournal.org issues of monetary regulation of money supply in the economy shomurodov ravshan tursunkulovich phd, associate professor department of “banking” tashkent institute of finance e-mail: r.shomuroodv@mail.ru a b s t r a c t k e y w o r d s this article indicates the monetary policy instruments developed over the years under the influence of innovative ideas based on the best practices of developed countries, and examines the scientific and theoretical views of foreign economists in this regard. it is also based on the fact that monetary policy has played an important role in solving financial and economic crises, epidemics, pandemics, macroeconomic and financial problems observed at different periods in the history of world economies. also, the influence of monetary policy instruments on the supply and demand of money in the economy is analyzed. in particular, the change in the refinancing rate on the growth rate of monetary aggregates in uzbekistan based on practical data from the official website of the central bank of the republic of uzbekistan. the practice of using monetary policy instruments in uzbekistan is analyzed, existing problems are identified and their scientific solutions are presented. in turn, sciencebased scientific, theoretical and practical proposals and recommendations have been developed to increase the role of uzbekistan in strengthening sustainable economic growth, financial and macroeconomic stability by improving monetary policy. monetary policy, monetary aggregates, the demand for money, the supply of money. monetary instruments, economic growth, macroeconomic sustainability, central bank, inflation, national currency, devaluation, credit, reserve requirement policy, open market operations, interest rate policy. 1.introduction an analysis of the best practices of developed countries shows that monetary policy has improved over the years under the influence of innovative ideas. in the history of the world economy, monetary policy has played an important role in solving financial and economic crises, epidemics, pandemics, macroeconomic and financial problems observed in various countries, and it has been constantly improved on the basis of innovative ideas. therefore, improving the practice of using monetary policy instruments is a necessary condition for ensuring the stability of the financial market, the liquidity of the banking system, the national currency, prices, the balance of payments and the economy. in developed countries such as the united states, japan and germany, the central banks have accumulated many years of theoretical, practical and methodological experience in ensuring and american journal of business management, economics and banking volume 12 may, 2023 p a g e | 2 www.americanjournal.org strengthening economic growth, macroeconomic and financial stability based on increasing economic and investment activity through the effective use of monetary policy. various monetary models are effectively used in its activities. improving the practice of using monetary policy instruments, in turn, is important in ensuring the stability of the national currency, prices, balance of payments, liquidity of the banking system and economic growth, development of financial markets, especially stock, capital, securities, money and foreign exchange markets, increasing investment efficiency. earns. today, the process of globalization in the world economy is rapidly deepening. in particular, under the influence of various crises and pandemics, various risks of an economic, financial, political and social nature have been increasing in countries around the world for many years. in turn, globalization has radically changed the functioning of the banking and financial system, the banking and financial system, in particular, the activities of central banks, commercial banks, non-bank credit institutions and insurance companies are developing rapidly in an innovative direction based on digital technologies. over the past years, the regulatory and methodological foundations of the banking system have been formed and strengthened in uzbekistan. innovative banking services and financial technologies began to be used. also, the decree of the president of the republic of uzbekistan dated september 13, 2017 no. pp-3272 “on measures to further improve monetary policy” provides for measures to improve coordination practices in the field of general economic, fiscal and monetary policy, the use of interestbearing instruments used in monetary policy operations to provide and attract liquidity. urgent tasks are being set to improve monetary policy, such as expansion [1]. it should be noted that there are problems associated with increasing the role of the central bank of the republic of uzbekistan in strengthening macroeconomic stability by improving the monetary policy. the main ones, in our opinion, are as follows. in particular, the lack of a discount policy of the central bank, the small volume of open market operations of the central bank, high reserve requirements, inflation and interest rates. therefore, in the action strategy for the five priorities of the country's development in uzbekistan, the improvement of monetary policy using monetary policy instruments widely used in foreign practice is recognized as one of the priorities for further development of the country's banking system. 2.materials monetary policy is a set of tools, mechanisms, measures aimed at influencing the money supply, price level, balance of payments, investment activity, the real sector of the economy, economic growth and various macroeconomic indicators through the monetary system of the state, taking into account current trends. its improvement plays an important role in ensuring macroeconomic and financial stability. it is known from international banking practice that monetary policy is carried out by the official monetary body of the state, the central bank. the central bank will have a direct impact on the balance sheets of commercial banks, primarily through the use of monetary instruments at its disposal, and the liquidity of the banking system will change. this, through the credit and money multiplier, has a direct impact on the change in reserve money, money supply, total money supply in the economy, the real sector of the economy, the financial market and investment activity. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 3 www.americanjournal.org the issue of the use of monetary policy instruments has been thoroughly studied by economists in the economic literature and relevant scientific conclusions and practical recommendations have been formed. in particular, m. friedman concludes that the central bank has sufficient capacity to manage the money supply, and at the same time concludes that inflation is not a multifactorial process [2]. this conclusion is based on the fact that the central bank can manage money supply and interest rates using open market operations and discount operations. indeed, the purchase of securities by the central bank on the open market will lead to an increase in the reserves and monetary base of the banking system, an increase in the money supply and a decrease in short-term interest rates. in particular, a group of economists has proposed the introduction of a 100% mandatory reserve requirement for deposits of commercial banks in order to actively use the reserve policy [3]. however, some economists have expressed a negative view of the mandatory reserve policy. for example, according to the well-known foreign economist f. mishkin, mandatory reserve requirements have many shortcomings, including the possibility of liquidity problems in banks [4]. mccallum, a foreign economist, argues that the demand for money is not stable, so the central bank's interest rate is the main instrument of monetary policy. foreign economist v. according to yurovitsky, in the absence of mandatory reserve requirements, all issued money is an asset, which in turn leads to an increase in deposits of commercial banks [6]. according to one of the foreign economists s. moiseev, open market operations are now the main tool of monetary policy in developed countries. open market operations allow central banks to enter into transactions on their own initiative, that is, to be more flexible in determining the timing and volume of monetary operations [7]. another foreign economist, a. according to simanovsky, in solving practical problems of monetary policy, practical aspects of money supply management through refinancing policy, regulation and supervision of banks, management of international reserve assets, etc. play an important role [8]. according to foreign economist j. sinki, the first serious innovative product in the activities of commercial banks was the certificates of deposit issued in february 1961 by the first national bank of new york. these certificates later became popular, enabling commercial banks to raise resources and manage liabilities [9]. foreign economists itai agur and maria demertzis, in their 2019 study on the impact of interest rate policy on macroprudential policy, say, in part: “.... lower interest rates lead to an increase in money supply and worsen financial stability” [10]. in our view, economists in this study highlighted the negative impact of cheap money policy on financial stability. in practice, however, cheap and expensive monetary policy has been used to achieve macroeconomic stability by overcoming extremely difficult and serious problems. this has already been proven in global economic, financial and banking practices. foreign economists martin bodenstein and junzu zaho, in their 2019 paper, labor, wages, and reasonable monetary policy, in their research on the interrelationship between labor, wages, and inflation, specifically stated: stabilizing inflation requires large expenditures associated with insignificant fluctuations in social security and empirical models [11]. in our study, economists have acknowledged that inflation and wage stabilization, in turn, require large expenditures. this is because curbing inflation and drastically reducing it, while at the same time ensuring wage stability, which is one of the most important social issues, requires the government of each state to take effective measures and large expenditures. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 4 www.americanjournal.org foreign economists philipp andrade and filippo ferroni have studied the relationship between the financial market and the central bank in making political decisions and have shown that two factors influence monetary policy. in particular, what drives the response of financial market reactions to central bank relations in the days when political decisions are made in their research? "we emphasize the role of two high-volatility factors that determine the most common monetary expectations: delphic shocks and odissean shocks," he said. blows). these two shocks move the profitability curve in one direction, but have the opposite effect on financial conditions and macroeconomic expectations. therefore, central banks cannot determine the level of incentives provided simply by fluctuating the income curve.”[12] in our view, it can be concluded from the research of these scholars that fluctuations in the financial market will certainly lead the central bank to make political decisions to effectively regulate the money supply. in this case, the central bank wisely uses its monetary instruments, in particular refinancing policy, open market operations, foreign exchange policy, reserve requirements, and affects the balance of commercial banks and through them the real sector of the economy, money supply, balance of payments and all macroeconomic and monetary indicators . o.namozov, a local economist, suggested the introduction of inflation targeting as an important condition for maintaining the stability of the monetary system [13]. another local economist, b. dushaev, suggested improving the regulation of money supply by developing the practice of using monetary policy instruments [14]. 3.methods this article uses methods such as comparison, comparison, synthesis, logical and comparative analysis of research, economic analysis, deduction, calculation of quantity and quality, statistical processing by comparing them with each other, scientific abstraction. 4.results it should be noted that when open market operations of central banks first took place, its object was only government-issued securities. over the years, the number of its facilities has increased on the basis of innovative ideas. in particular, at present, from certificates of deposit (central banks of the netherlands, denmark, spain, european central bank), financial bills (central bank of england, rix bank of sweden, german bundesbank, central bank of japan), corporate bonds (south korea, chile, central russia) banks) are used as the object of these operations [15]. another innovative idea in the field of monetary policy is a proposal to increase the efficiency of reserve management and improve the monetary policy of the central bank by accumulating official gold and foreign exchange reserves on the balance sheet of the central bank. in the 60s of the twentieth century, this idea was born in the countries of western europe. its implementation has allowed to increase the efficiency of management of official gold and foreign exchange reserves. in particular, the possibility of a sharp increase in public external debt was limited. that is, the central bank will repay the external debt of the state from its own foreign exchange. but only on one condition, that is, if the current account of the government in the central bank has the equivalent in national currency of the amount paid in foreign currency. swap transactions also became one of the most common ways to manage official gold and foreign exchange reserves, and the swap market emerged in 1981. it should be noted that the currency swap american journal of business management, economics and banking volume 12 may, 2023 p a g e | 5 www.americanjournal.org reliably protects foreign exchange reserves from currency risk. but it doesn’t bring much revenue. in this regard, currency swap transactions attract more central banks. later, a number of innovative deposit products appeared in the practice of developed countries. in particular, in the 70s of the twentieth century in us banking practice appeared interest-bearing transaction deposit accounts now. one of the most pressing issues of digital banking is undoubtedly the introduction of digital currency by central banks. the bank of england announced the first study on the creation of a central bank digital currency [16]. in general, the following advantages inherent in the central bank’s digital currency have been recognized by most economists. these include convenience, ie the ability to use digital currencies without opening an account, low transaction costs, currency conversion, maintenance of bank accounts and reduced maintenance costs. security, in particular, the circulation of digital currencies, unlike cryptocurrencies created by individuals, is organized by central banks and regulated by certain rules. digital currencies also allow for the widespread use of digital technologies, paving the way for the emergence of new forms of money. decree of the president of the republic of uzbekistan pf-5177 dated september 2, 2017 "on priority measures to liberalize foreign exchange policy" [17] aimed at creating equal conditions for the implementation of its activities. research shows that one of the traditional tools of monetary policy is the policy of the central bank's reserve requirements. it is possible to change the size of the country’s money supply by changing the norm of mandatory reserve requirements. however, the policy of mandatory reserve requirements is an administrative tool of monetary policy and its impact on the money supply through the money multiplier is enormous. the relatively high inflation rate and refinancing rate in uzbekistan (figure1). figure 1. inflation rate in uzbekistan, real gdp growth rate and refinancing rate dynamics, in percent [18] in particular, from october 1, 2018, the second stage of improving the compulsory reserve in uzbekistan has been implemented. at this stage, the procedure for the formation of required reserves 14.4 14.3 15.2 11.1 9.8 12.3 14 16 16 14 14 15 4.4 5.4 5.7 1.7 7.4 5.7 0 2 4 6 8 10 12 14 16 18 2017 2018 2019 2020 2021 2022 dinamics of interest rate, inflation and gdp real growth rate in uzbekistan, % infilation interest rate gdp growth rate american journal of business management, economics and banking volume 12 may, 2023 p a g e | 6 www.americanjournal.org only in the national currency was introduced, the reserve requirements for deposits of legal entities and individuals were unified, ie the reserve requirements for deposits in national currency were reduced and the reserve requirements for foreign currency deposits were increased. in order to ensure the profitability of assets in the national currency in the face of increasing direct and indirect pressure of external factors on inflation and to create a monetary environment aimed at preventing the impact of government spending, including monthly wage increases and price liberalization on inflation expectations, since september 25, the central bank has increased its refinancing rate from 14% to 16% per annum. in turn, from october 1, 2018, the central bank of the republic of uzbekistan set the required reserve ratio for foreign currency deposits of commercial banks at 14% [19]. also, the resolution of the president of the republic of uzbekistan dated september 13, 2017 no pp3272 “on measures to further improve monetary policy” there are urgent tasks to improve monetary policy, such as expanding the use of interest rate instruments used in attracting operations [20]. figure 2. growth rate (decrease) gdp of the cis countries in 2022-2022. as a percentage of the corresponding period of the previous year [21] the data shown in figure 2 show that the inflation rate in the republic of uzbekistan in 2017-2019 was high. this led to an increase in the central bank refinancing rate. in turn, the increase in the refinancing rate led to an increase in interest rates on loans issued by commercial banks in the national currency. however, stable economic growth was observed during this period. under the influence of the covid-19 pandemic, real gdp growth rates in 2020 will be significantly reduced. however, in 2022, the annual inflation rate will fall to 12,3 percent, while the refinancing rate will remain at 15 percent on an annualized basis. this has led to a decrease in the average annual interest rate on loans issued by commercial banks in the national currency. as a result, this situation had a positive impact on the growth of real demand for loans in the economy. in particular, the real gdp growth rate in 2022 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 7 www.americanjournal.org will increase to 5,7%. according to the target set for 2024 on inflation targeting, it is planned to reduce it to 5% per annum. it should be noted that in 1993, along with russia, 10 cis countries issued their national currencies, and the depreciation of the russian ruble in the territory of these countries caused severe hyperinflation, which led to the closure of neighboring countries such as uzbekistan. in particular, in 1994, hyperinflation in ukraine reached 10054 percent. in georgia it increased by 7800 percent, in russia by more than 2800 percent, in the baltic states by more than 2700 percent, and in uzbekistan by only 1132 percent. in 1994, the government of the republic of uzbekistan quickly took measures to stabilize the economy. as a result, the annual inflation rate was reduced to 127,6 percent in 1995, almost 10 times. in particular, in 1996, uzbekistan was one of the first cis countries to reverse the decline in production, falling to 64,3%, and achieved economic growth of 1,6%. in 1997, economic growth was achieved at 5,2 percent, while the inflation rate was reduced to 27,6 percent[22]. it should be noted that a number of positive achievements have been made in addressing the tasks set by the central bank of the republic of uzbekistan to improve monetary policy. in particular: the introduction of the practice of refinancing loans by the central bank in the second half of 2017 helped to increase the effectiveness of monetary policy, including refinancing policy. from october 1, 2018, in order to improve the reserve policy of the central bank, the procedure for forming the amount of required reserves in national currency was introduced, the reserve requirements for deposits of legal entities and individuals were unified, ie the reserve requirements for deposits in national currency were reduced. mandatory backup standards have been increased [23]. from january 1, 2020, the central bank's interest rate and interest rate corridor, central bank bonds, as well as 2-week and 1-day (overnight) deposit, repo and swap operations were introduced [24]. it should be noted that the beginning of the gradual transition to inflation targeting in the country from 2020 has led to a radical change in priorities in the field of monetary policy. in particular, in accordance with the decree of the president of the republic of uzbekistan dated november 18, 2019 pf-5877 "on improving monetary policy through the gradual transition to inflation targeting", the priorities of monetary policy in the transition to inflation targeting are: 1. prevention of sharp price increases and spiral inflation. 2. maintaining devaluation pressure on the national currency. 3. formation of the money market, elimination of conditions for preferential lending and money market segmentation. 4. maintain the solvency of the population and business, taking into account internal and external factors. 5. ensuring the stability of the financial sector [25]. in addition to the above-mentioned advantages, there are problems associated with increasing the role of the central bank of the republic of uzbekistan in strengthening macroeconomic stability by improving the monetary policy. the main ones, in our opinion, are as follows. these include: the absence of a central bank discount policy; small volume of central bank open market operations; the central bank's reserve requirements and high inflation rates. according to the official data of the central bank of the republic of uzbekistan, in 2019 the volume of government securities issues amounted to only 3,4% of highly liquid assets of commercial banks. in particular, in 2020, the volume of securities of the government of uzbekistan will reach 1,6 trillion soums. this is a small issue volume, which does not allow the central bank to significantly increase american journal of business management, economics and banking volume 12 may, 2023 p a g e | 8 www.americanjournal.org the volume of open market operations. in turn, it is clear from these indicators that the volume of issues of government securities is small. the gross domestic product (gdp) of uzbekistan in 2022 increased by 5,7% to 888.34 trillion soums (about $80,4 billion). gdp per capita increased to $ 2,255, the state agency reports republic of uzbekistan. table 1 change in the growth rate of the broad money (monetary aggregate m3), currency (monetary aggregate m0) and interest rate in percentage in the republic of uzbekistan [26] years growth rate of the broad money (monetary aggregate m3) ggrowth rate currency (monetary aggregate m0) change in the interest rate 2013 20,3 28,7 12,0 2014 15,7 22,0 10,0 2015 24,3 17,6 14,0 2016 23,5 24,0 9,0 2017 40,2 47, 14,0 2018 14,1 14,0 16,0 2019 13,9 9,4 16,0 2020 17,7 2,8 14,0 2021 29,7 15,0 16,0 2022 30,2 47,3 15,0 from the analysis and trends of monetary indicators, it can be seen that the growth rate of the money supply and cash is higher than the refinancing rate. but the central bank used other monetary policy instruments in parallel to regulate the growth rates of monetary aggregates. for example, the policy of reserve requirements, currency policy and open market operations. a significant growth rate of the money supply and cash is associated with the liberalization of monetary policy conducted by the government of uzbekistan jointly with the central bank in 2017. as for the significant growth rate of the money supply and cash, it is associated with a significant increase in the nominal gross domestic product with a simultaneous increase in the real demand for money and an increase in investment activity in the country. table 2 the structure of the broad money (monetary aggregate m3) in the republic of uzbekistan [27] years the currency (monetary aggregate m0) the deposits in national currency the deposits in foreign currency 2012 23,6 53,8 22,6 2013 25,3 55,1 19,7 2014 26,6 56,2 17,2 2015 25,2 60,5 14,3 2016 25,3 57,9 16,8 2017 26,6 38,3 35,1 2018 26,5 43,2 30,2 2019 25,5 44,6 29,9 2020 22,2 46,9 30,8 2021 19,7 49,0 31,2 2022 22,3 52,6 25,1 american journal of business management, economics and banking volume 12 may, 2023 p a g e | 9 www.americanjournal.org analysis of the structure of the broad money supply shows that since 2017, with the liberalization of monetary policy, the share of deposits in the structure of the broad money supply has increased significantly from 16,8 percent in 2016 to 35,1 percent in 2017 and for 5 years has been more than 30 percent on average. as a result of a significant increase in deposits in the national currency in the structure of the broad money supply to 52,6 percent in 2022, the share of deposits in foreign currency has significantly decreased. 5.conclusion in our opinion, it is expedient to take the following measures to address the above-mentioned problems: 1. in order to increase the role of monetary policy in the context of the globalization, it is necessary to introduce the practice of the central bank issuing primary, secondary and seasonal discount loans to commercial banks. in particular, the conversion of open market operations into bonds and certificates of deposit of commercial banks with a current level of liquidity of 50% and above, in particular, the central bank's mandatory reserve rate on deposits in foreign currency attracted by commercial banks for more than 1 year. should be set at the rate level. 2. the transformation of long-term bonds and certificates of deposit of commercial banks with a high level of liquidity into the object of open market operations will increase the volume of open market operations of the central bank. this, in turn, will ensure that the central bank has an effective impact on the money market and the liquidity of the banking system. uzbekistan has sufficient opportunities and conditions for this. that is, there are commercial banks whose solvency and liquidity are at the level of demand. second, there are large-scale issuance of certificates of deposit and long-term bonds by commercial banks. 3. in order to increase the central bank's ability to influence the interest rates on loans from commercial banks, it is first necessary to ensure a moderate level of inflation (not exceeding the annual rate of 3%); secondly, it is necessary to ensure the continuity of the central bank's practice of issuing refinancing loans (discount loans, pawn loans, overdraft, term loans); third, it is necessary to influence the deposit offer of commercial banks by increasing the volume of placement of government securities on the condition of proper repo. 4. in order to develop the secondary market in uzbekistan, it is necessary to expand indirect monetary policy instruments, including pawn and overdraft mechanisms, currency swaps, overnight loans, repo and repo operations. this will help the central bank to attract excess liquidity in circulation, effectively regulate the money supply, reserve money, credit volume, banking system and money market liquidity, have a direct impact on the real sector of the economy and further enhance the role of monetary policy in the economy. in conclusion, the implementation of these scientific-theoretical proposals and practical recommendations will play an important role in further enhancing the role of monetary policy in modern uzbekistan [28]. literature 1. resolution of the president of the republic of uzbekistan dated september 13, 2017 no. pp-3272 "on measures to further improve monetary policy". www.lex.uz. 2. friedman m. if money spoke ... per. from english. m.: delo, 1999. s. 132-134. http://www.lex.uz/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 10 www.americanjournal.org 3 mises l. tne theory of money and kredit. –indianapolis, 1980. –p. 446-448.; friedman m. fundamentals of monetarism. per. from english. m.: teis, 2002. s. 41-43. 4. mishkin f.s. economic theory of money, banking and financial markets. 7th ed. per. from english. m .: llc "i.d. williams", 2013. -p. 490. 5. mccallum, b.t. robustness properties of a rule for monetary policy. carnegie-rochester conference series on public policy 29, 1988. р. 173-203. 6. yurovitsky v. evolution of money: money circulation in the era of change. m.: grossmedia, 2005. s. 96. 7. moiseev s.r. operations of central banks in the open securities market//finance and credit. moscow, 2003. no. 6. s. 32-40. 8. simanovsky a.yu. banking regulation: revolution//money and credit. moscow, 2014. no. 3. p. 3-11. 9. sinki j. financial management in a commercial bank and in the financial services industry. per. from english. m.: alpina publisher, 2017. 1018s. 10. itai agur, maria demertzis. will macroprudential policy counteract monetary policy’s effects on financial stability? north american journal of economics and finance 48 (2019) 65-75. 11. martin bodenstein, junzhu zaho. employment, wages and optimal monetary policy. journal of monetary economics. february 14, 2019. 12. р. andrade, f. ferroni. (2020). delphic and odyssean monetary policy shocks: evidence from the euro area. journal of monetary economics volume 117, pages 816-832. 13. namozov o.sh. monetary policy in a transitional economy: conceptual approaches and program directions. abstract diss. on sois. uch. art. dan. tashkent, 2001. 39s.; 14. dushaev b.m. monetary policy. tashkent: iqtisod-moliya, 2003. 120 p. 15. moiseev s.r. monetary policy: theory and practice. m .: moscow financial and industrial academy, 2011. p. 737. 16. central banks beat bitcoin at own game with rival super currency//url: http://www.telegraph. co.uk/business/2016/03/13/central-banks-beatbitcoin-at-own-game-with-rival-supercurrency. 17. decree of the president of the republic of uzbekistan no. pf-5177 of september 2, 2017 "on priority measures for the liberalization of foreign exchange policy." 18. report on the activities of the central bank of the republic of uzbekistan for 2022. www.cbu.uz. 19. report on the activities of the central bank of the republic of uzbekistan for 2018. www.cbu.uz (central bank of the republic of uzbekistan). 20. resolution of the president of the republic of uzbekistan dated september 13, 2017 no pp-3272 "on measures to further improve monetary policy." www.lex.uz. 21. official data of the state statistics committee of the republic of uzbekistan. 22. shomurodov r.t. issues of improving monetary instruments in the banking system. i.f.n. diss.avtoreferati for ilm.dar.ol. tashkent, 2004. 19 b. 23. report on the activities of the central bank of the republic of uzbekistan in 2018 (b.60) // www.cbu.uz 23. report on the activities of the central bank of the republic of uzbekistan in 2019 (p.73) // www.cbu.uz american journal of business management, economics and banking volume 12 may, 2023 p a g e | 11 www.americanjournal.org 25. decree of the president of the republic of uzbekistan dated november 18, 2019 no. pf-5877 "on improving monetary policy through the gradual transition to inflation targeting." national database of legislation, 19.11.2019, no. 06/19/5877/4036. 26. the official reports of data base the central bank of the republic of uzbekistan in 2023 www.cbu.uz. 27. the official reports of data base the central bank of the republic of uzbekistan in 2023 www.cbu.uz. 28. bakhtiyor o‘g‘li o. b. theoretical aspects and methods of increasing regional investment attractiveness //e global congress. – 2023. – №. 4. – с. 98-101. http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 52 www.americanjournal.org ijtimoiy-siyosiy nutqqa qo‘yiladigan kommunikativ talablar salomat nurmanova tursinbayevna toshkent davlat agrar universiteti “o‘zbek tili va adabiyoti” kafedrasi o‘qituvchisi. a b s t r a c t k e y w o r d s ushbu maqolada, ijtimoit-siyosiy nuqqqa qo‘yiladigan komunukativ talablar, ularning turlari va xususiyatlari haqida so‘z yuritiladi. nutq, notiq, notiqlik, kommunikativ talab, ijtimoiy notiqlik tushunchasi insonlar o‘z fikrlarini go‘zal qilib ifodalashga intila boshlagan davrdan, ya’ni ma’lum ijtimoiy jarayonlarga kirisha boshlagan davrlardan mavjud bo‘lib, faqatgina farqli atamalar bilan yuritilgan. uning tarkibiy vazifalari esa davr talabiga ko‘ra boyib yoki aksincha torayib borgan. kishilik jamiyatining biror bir jabhasi yo‘qki, unda notiqlik san’ati yoki uning elementlari qatnashmagan bo‘lsa. masalan: biror bir rahbarning o‘z hodimlariga qarata so‘zlagan nutqida ham, o‘qituvchilarning o‘quvchilarga beradigan sabog‘ida ham, xullas, barcha sohalarda notiqlik san’ati o‘z mavqeyiga ega. notiqlik, ya’ni go‘zal va chiroyli so‘zlash san’atining kelib chiqishi bevosita qadimgi yunoniston bilan bog‘liq. notiqlik san’ati xuddi nazm va nasr singari ijod qilish mumkin bo‘lgan soha hisoblangan, hatto “san’atlar shohi” deb tan olingan. notiqlik san’ati davlat ishlariga, odamlarning aqli va hissiyotlariga juda qattiq ta’sir etgan. qadimgi greklar chiroyli nutq so‘zlashni san’at deb baholab, uning mohiyatini to‘g‘ri ko‘rsatib berganlar. miloddan avvalgi v asrda yunonistonda omma oldida monologik nutq so‘zlash madaniyati shakllangan. bu davrda notiqning uchta vazifasi ajratilgan bo‘lib, ular quyidagilardan iborat: biror narsani tushuntirish, ma’lum bir tafakkurga, xulosaga, ayniqsa, harakatga undash va tinglovchilarda ma’lum bir qoniqish hosil qilish. tinglovchilarda muayyan fikr, hissiyot (masalan, adolatparvarlik, vatanparvarlik) uyg‘otish notiqning asosiy vazifalari hisoblanadiijtimoiy-siyosiy notiqlikning har bir shaklida aniq maqsad ko‘zlangan bo‘ladi. nutqning to‘g‘ri tashkil qilinganligiga bog‘liq ravishda ko‘zlangan maqsadga erishiladi yoki aksi yuz beradi. nutq to‘g‘ri tashkil qilinishi uchun esa, albatta, kommunikativ talabalar (nutqning to‘g‘riligi, аniqligi, mаntiqiyligi, tоzаligi)ga javob berishi lozim. ijtimoiy-siyosiy notiqlik katta imkoniyat bilan birga, majburiyatlardan ham iborat. shu sababli ham har bir talabning qanoatlantirilishi nuqtdagi masalaning amalga oshish imkoniyat darajasini yanada oshirib beradi. kommunikativ talablar va ularning amal qilinishi haqida kengroq to‘xtalib o‘tsak: nutqning to‘g‘riligi: “to‘g‘rilik deganda, -deb yozadi v.g.kostomarov,-nutq madaniyatining zarur va birinchi sharti sifatida adabiy tilning ma’lum paytda qabul qilingan normasiga qat’iy va aniq muvofiq kelishini, uning talaffuz, imloviy va grammatik normalarini egallashni tushunish lozim american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 53 www.americanjournal.org bo‘ladi”. demak, adabiy me’yor (leksik – semantik, grafik, fonetik, aktsentologik, grammatik morfologik va sintaktik so‘z yasalish, imloviy, uslubiy, punktuatsion)larga asoslangan nutq, nutqning to‘g‘riligi talabini ham qanotlantira oladi. ijtimoiy-siyosiy notiqlikning rasmiy doiralar uchun xosligini ham inobatga olsak, “nutqning to‘g‘riligi” tom ma’noda ijtimoiy-siyosiy notiqlik uchun birinchi talab deya olamiz. chunki rasmiy doiralarda adabiy til me’yorlariga amal qilish shartligi qonun doirasida belgilangan. nutqning to‘g‘ri tuzilgan bo‘lishi so‘zlovchi va tinglovchining, shuningdek, yozuvchi a kitobxonning bir – birlarini tez va oson tushunishlarini ta’minlaydi. to‘g‘riligi eng avvalo uning adabiy til me’yorlariga muvofiq kelishidir. ayniqsa, nutqning to‘g‘ri bo‘lishi urg‘u va grammatik me’yorga amal qilishni taqozo etadi. masalan, urg‘u o‘zbek tilida ko‘pincha so‘zning oxirgi bo‘g‘iniga tushdi. grammatik me’yorlarga rivoya qilish deganda gap tuzish qoidalaridan to‘g‘ri foydalanish, o‘zak va qo‘shimchalar o‘rtasidagi bog‘liqlikni ta’minlash, ega kesim mosligiga erishish, ikkinchi darajali bo‘laklarning bosh bo‘laklarga bog‘lanishlarning qonuniyatlariga e’tibor berish ko‘zda tutiladi. yaxshi siyosatchi – yaxshi notiq ham hisoblanadi. shavkat miromonovich mirziyoyev dunyo hamjamiyati e’tirof qilganidek nafaqat oqil siyosatchi, balki notiq hamdir. bugun prinsipial jihatdan g‘oyat muhim bo‘lgan bir fikrni yana ta’kidlab aytishni zarur deb bilaman: o‘zbekiston va uning bag‘rikeng xalqi tinchliksevar siyosat yuritish, milliy va umuminsoniy qadriyatlarga hurmat bilan qarash tamoyillarini amalga oshirish pozitsiyasida doimo mustahkam turib kelmoqda. yuqorida yurtboshimizning prezidentlik lavozimiga kirishish tantanali marosimiga bag‘ishlangan oliy majlis palatalarining qo‘shma majlisidagi “erkin va obod, demokratik jamiyatni barchamiz birgalikda barpo etamiz” mavzusidagi ma’ruzasidan parchada adabiy me’yorning barcha tamoyillariga qat’iy amal qilinganligini ko‘rishimiz mumkin. ya’ni jumlalardagi so‘zlar leksik-semantik jihatdan bir butunlik hosil qilganki, hajman kichik jumlada katta g‘oya jamlangan. shuning bilan birga, morfologik va sintaktik me’yorlarga ham to‘liq rioya qilingan. rasmiy uslubdagi ushbu jumlalar uslubiy normaning ham asoslangan holda qurilgan. nutqning aniqligi. nutqning aniqligi talabi ham to‘g‘rilik talabining uzviy davomi bo‘lib, nutqning bir butunligini ta’minlovchi mezon hisoblanadi. agar nutqning to‘g‘riligini ta’minlashda lisoniy me’yorlar muhim o‘rin tutsa, nutqning aniqligiga tashqi faktorlar ham ta’sir ko‘rsatadi. aniqlik deyilganda tabiat va jamiyatdagi narsa va hodisalar bilan ularning atamasi orasidagi mutanosiblik tushuniladi. agar inson tafakkuri, bilimlari so‘zda aniq ifodalanmagan bo‘lsa, u tinglovchiga tushunarsiz bo‘lib qoleveradi. maqsad – aytilgan fikrning tinglovchiga tushunarli bo‘lishiga erishishdan iboratdir. nutqning aniqligi so‘zning o‘zi ifodalayotgan voqelikka mutlaqo mos va muvofiq kelishidir. aniqlik ikki xil bo‘ladi: narsaning aniqligi va tushunchaning aniqligi. narsa aniqligi nutqda aks etgan mavjudlikning narsalar, hodisalar doirasi bilan nutq mazmunining munosabatida ko‘rinadi. ushbu talab ham ijtimoiy-siyosiy nutqning o‘ziga xosliklarini ta’minlovchi talabdir. ijtimoiy-siyosiy notiqlikning barcha shakllarida har bir jumla sinonimik qatorlardan to‘g‘ri tanlab olingan, ko‘p ma’nolilik va omonimlik jihatlariga e’tibor berilgan holda o‘z o‘rnida qo‘llanilishi lozim. quyida biz aqsh kinoijodkorlarning “debate” (munozara) filmidagi suhbatning aniqligini tahlil qilamiz: american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 54 www.americanjournal.org talaba qiz: nima uchun aqsh dunyodagi eng buyuk davlat? birinchi siyosatchi: imkoniyatlar sabab. ikkinchi siyosatchi: ozodlik va ozodlik sabab. uchinchi siyosatchi: aqsh dunyodagi eng buyuk davlat emas. bu yerda hamma narsa sotiladi va sotib olinadi. qanaqa umumiy imkoniyatlar haqida gapirayapsiz? ozodlik? nima faqat aqsh ozodmi? kanada ozod, yaponiya ozod, britaniya ozod, fransiya ozod, germaniya ozod. aqsh ortiq dunyodagi eng buyuk davlat emas. buyuk so‘ziga yuzaki baho bergan ikkita siyosatchi umumiy fikrlar bilan javob berdi. buyuklik darajasini belgilovchi jihatlarga e’tibor qaratilmadi. ulardan farqli ravishda esa uchinchi siyosatchi berilgan savolga tahliliy asoslar bilan aniq javob qaytardi. bu esa tinglovchilarda oldingi nutqlarga nisbatan kuchliroq ta’sir kuchi paydo qildi. nutqning mantiqiyligi. jumladagi mantiq so‘zidan ham ma’lumki bu talab ham oldingi talablar bilan bevosita bog‘langan. chunki aniqlik mavjud bo‘lmagan nutqdan mantiqiylikni izlash befoyda. mantiqiylik talabini qanotlantirish uchun adabiyotimiz darg‘asi a.qahhor ta’biri bilan aytganda: “so‘zni mixday qoqib, shapkasini sug‘urib olish kerak” r.qo‘ng‘urov, e.begmatov, e.tojiyevlar muallifligidagi “nutq madaniyati va uslubiyati asoslari”(1990-yilgi nashri) qo‘llanmasida nutqning mantiqiyligini izohlashda a.g.chernishevskiyning “nimani noaniq tasavvur qilsang, shuni noaniq ifoda etasan, noaniqlik va ifodani chalkashtirish fikrlar chigalligidan dalolatdir.” jumlasini keltiradi. ya’ni mantiqiylik notiqdan so‘zlardan saralab foydalanish, tinglovchilar hech ikkilanmasdan uni qabul qilishini talab qiladi. ijtimoiy-siyosiy notiqlik shakllari uchun ham bu talab o‘rinli. chunki siyosiy, muhokama, hisobot, tashviqot nutqlaridagi har bir jumla mantiq qonuniyatlariga asoslanadi. ushbu nutqlarda jumlalarning soddaligi ham mantiqiylikni ta’minlaydi. masalan amerika prezidenti trampning 2016-yilgi saylovlardagi nutqi aksariyat nashrlarda to‘rt yashar bola nutqiga o‘xshaydi, deb tanqid qilingan. bu tanqidga esa uning murakkab jumlalardan foydalanganligi sabab bo‘lgan. xotin-qizlar qo‘mitasi raisi elmira bositxonavaning 2019-yil 7-iyul sanasidagi aokada tashkil etilgan “oiladagi zo‘ravonlik masalalari, turli vaziyatlar tahlili va bu borada olib borilayotgan chora-tadbirlar” mavzusida tashkil etilgan brifingdagi nutqida: “mamlakatni bilaman desang, bozor bilan mozoriga bor, degan gap bor. haqiqiy bozorchi ayollarda na ma’naviyat, na ma’rifat bor”, deb bugungi kundagi ayol-qizlar muammolariga to‘xtalib o‘tgan edi. ammo uning nutqidagi “… bozorchi ayollarda na ma’naviyat, na ma’rifat bor” jumlasi nafaqat oav vakillarining, balki tinglovchilarning ham noroziligiga sabab bo‘ldi. ya’ni bositxanova ushbu nutqida beixtiyor nutqiy mantiqiylikni yo‘qotib qo‘ydi. nutqning tozaligi. nutqni notiqning mahsuloti deb tasavvur qiladigan bo‘lsak, u sotuvga chiqishi oldidan so‘nggi ko‘rikdan o‘tkazilish jarayonidir. bu jarayonda uning tarkibidagi begona unsurlar olib tashlanadi. nutqning tozalik darajasi uning tarkibida parazit so‘zlar (ko‘p takrorlanuvchi), sheva so‘zlar, o‘rinsiz qo‘llangan chet so‘z va so‘z birikmalari, jargonlar, vulgarizmlar uchramasligi bilan baholanadi. bir so‘z bilan aytganda, nutqning tozaligi deganda eng avvalo, uning adabiy tilning lisoniy normasiga muvofiq kelish kelmasligi tushuniladi. ba’zan notiq o‘z nutqini nazorat qilmaganligi, bee’tiborligi oqibatida ayrim ortiqcha so‘zlarni takrorlashga o‘rganib qoladi. xush, demak, masalan, ya’ni so‘zlari shular jumlasidandir. bir ma’ruzachining ma’ruzasini kuzatgan taniqli olim a.ahmedov ma’ruzachi o‘z nutqida o‘rtoqlar so‘zini 101 marta, ya’ni so‘zini 73 marta, demak, so‘zini 60 marta takrorlaganini e’tirof etadi. bir soatlik nutqda 234 ta “bekorchi” so‘z ishlatilgan. bunday so‘zlar ham nutq american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 55 www.americanjournal.org madaniyatiga yot so‘zlardir. demak, nutq sohibi o‘z nutqini ustida tinimsiz ishlashi, nutqni nazorat qilishi, tilga mas’uliyat bilan yondoshishi lozimdir. har qanday siyosiy nutq, albatta, yuqoridagi unsurlardan ozod bo‘lishi kerak. chunki turli o‘rinsiz takrorlar yoki jargon, vulgarlarning uchrashi nutqning siyosiylik ahamiyatini pasayishiga sabab bo‘ladi. bugungi kunda nafaqat shevalardan foydalanish balki kanselyarizm hodisasi ham notiqning darajasida katta ahamiyat kasb etmoqda. foydalanilgan adabiyotlar ro‘yxati 1. mirziyoyev sh. milliy taraqqiyot yo‘limizni qat’iyat bilan davom ettirib, yangi bosqichga ko‘taramiz. t.: o‘zbekiston 2018, 139-bet 2. mirziyoyev sh. milliy taraqqiyot yo‘limizni qat’iyat bilan davom ettirib, yangi bosqichga ko‘taramiz. t.: “o‘zbekiston”, 2018, 139-bet 3. anna brosius, bert bakker, martijn schoonvelde, gijs schumacher, evaluating complexity in political speech page-3 4. kostamarov v.g. kultura rechi i stil. – m. 1960. 5. qo‘ng‘urov r., begmatov e., tojiev yo. nutq madaniyati va uslubiyati asoslari t. 1992, 53-bet 6. youtube.com american journal of business management, economics and banking issn (e): 2832-8078 volume 1, | june, 2022 p a g e | 12 www.americanjournal.org socio-economic implications for swamp reclamation in abonnema, nigeria michael. didia1, stewart.s. owukio2 1 rivers state university coastal research group, department of geography and environmental management, rivers state university, port harcourt, nigeria 2 rivers state university,department of urban and regional planning, rivers state university, port harcourt, nigeria a b s t r a c t k e y w o r d s abonnema, a riverine domain is a large town in the kalabari kingdom in akuku-toru local government area rivers state, nigeria is surrounded by water; the town is located in the southwest of rivers state founded in 1882, with a population of 74468. abonnema keyed into land reclamation because of its overcrowded condition and to satisfy the need for new homes. this research was aimed at evaluating the positive and negative implications of swamp reclamation on livelihood and infrastructural delivery in abonnema. in this study, field observations, questionnaire surveys, land-sat imageries, and sky-view lifetime drone photographs were achieved from the rivers state ministry of works and perspective. supervised classification of the image processing was adopted to determine the percentage of land cover in the study area. findings showed that land reclamation activities have caused the destruction and displacement of organisms and species; and on the other hand, most populations have benefited from land reclamation activities. these advantages include the development of infrastructure and access to employment opportunities, an extension of land capacity, improved living standard for citizens. the study, therefore, recommends that the rivers state government should not relent on reclaiming more land, especially in other islands in rivers state, so such islands will experience the benefits of infrastructural development and the state government should also put in place more laws and strategies to regulate reclamation activities across the state. educational organizations should also carry out environmental awareness and perception of the environment, as part of their duty. swamp reclamation, abonnema, wetlands, hydrology, socioeconomics american journal of business management, economics and banking volume 1, june, 2022 p a g e | 13 www.americanjournal.org introduction abonnema, originally known as nyemoni (which means "covet your own" in the kalabari dialect of the ijaw language), is a large town in the kalabari kingdom that was founded in 1882. its territory was discovered by an expedition of eleven independent chieftaincy houses from the kalabari city-state (elem kalabari). abonnema grew to become a flourishing major nigerian seaport during the colonial era. it was host to many european companies. one such company was the royal niger company. abonnema is the headquarters of akuku-toru local government area of rivers state in nigeria, which is largely surrounded by wetlands. wetland is an important ecosystem for fish and loss or degradation of wetland will have a direct consequence on sustainable fisheries [3]. whenever a source of freshwater meets a floodplain that has no steep out-flow, the water builds up to standing level. this is known as a swamp and is a productive ecosystem, although difficult for humans to live in niger delta mangroves are the largest in africa, but uncontrolled anthropogenic activities had reduced their population size. the reduction from large to small mangrove stands has some ecological implications on species populations. for instance, stochastic events such as flooding, landslides, sea-level rise, high temperature, and humidity affect small populations. human-mediated actions of random deforestation for firewood production, canalization, and de-silting of waterways and also artisan refinery, lead to the complete elimination of mangrove stands in specific locations. the cumulative effect of these actions can result in local extinction and loss of genetic variation of mangroves. destruction of mangroves over the years is detrimental to other species that inhabit the mangroves in the niger delta such as fishes, crabs, etc. mangrove forests provide a wide range of services, such as the provisioning of timber, medicines, fish, and shellfish. good catches of fish and shellfish, especially crabs and shrimp, rely on good ecosystem health, including proper flushing by seawater, dense and productive stands of trees, and ecological connections with adjacent ecosystems such as sea grass meadows. hence, managing mangrove forests to enhance fisheries provisioning implies enhancing ecosystem health, with concomitant benefits for other services such as coastal protection and carbon sequestration. positive interactions between individual trees raise the prospect of synergies for timber production and other services as well (huxham et al., 2010). due to the high demand for land, the local people have indulged in swamp reclamation through the local means of sand filling such as filling with swamp mud, while other modes of reclamation involve the use of swamp buggies. the entry of big machinery into the swamp causes a negative impact on the coast such as destroying many soil-dwelling and benthic organisms. althoughland reclamation can be classified as a process of acquiring land from wetlands coast or sealand, reclamation activities destroy the habitat of organisms and species. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 14 www.americanjournal.org figure 1: base map of abonnema factors of swamp reclamation swamp reclamation is the process of recovery of wetlands due to the lack of habitable land space in a wetland region, turning it into a beneficial purpose. in other words, it is a method of turning a wetland into good land for residential, social, commercial, and industrial purposes. it is very common in the southern parts of nigeria where there seems to be plenty of land, especially along the coastline. there are many factors why people embark on swamp reclamation. some of the reasons are: 1.insufficient land: people embark on land reclamation because of the small size of their land. in other to expand the existing land, they, therefore, embark on land reclamation. 2.population pressure: as the population increases, the need arises to reclaim existing lands that have been occupied by water. 3.for residential purposes: due to the scarcity of land to build coupled with a high cost of accommodation, people embark on land reclamation to build houses for residential purposes. 4.for commercial purposes: trade and other commercial activities are created when land is reclaimed. this is very common in lagos state 5.for industrial purposes: industrialists do engage themselves in land reclamation to site industries in the new area. 6.for agricultural purposes: american journal of business management, economics and banking volume 1, june, 2022 p a g e | 15 www.americanjournal.org impact of reclaiming swamp land reclamation changes the quality of the surrounding areas of water. the material used causes the water to be more acidic and certain organisms are unable to adapt to this environment. this upsets the oxygen-carbon dioxide levels in the water, bringing about difficulty for organisms' survival. reclamation of wetland destroys an underwater habitat by building over or enclosing a body of water. a high density of reclamations on small shallow bottom areas represents a major form of quantitative damage to the underwater environment and the destruction caused is irreversible. reclaimed land is also responsible for the rise of the water level on the bay which causes massive flooding and storm surges. they badly affect not just the lives of the residents but also, may shut down local economic activities, particularly those in low-lying cities. besides creating a valuable resource where one didn't exist before; there are other advantages to reclaiming lands. wetland reclamation provides development-obsessed local government’s areas, the option of avoiding the demolition of yet more rural villages and relocating tens of thousands more people, just like the case of abonnema or any other island. there are hopes for creating more lands and land capacity expansions, due to the increase of population over time, which can be advantage to infrastructural developments and can also enhance road transportation within abonnema and and its neighboring communities. the relevance swamp reclamation to road construction transportation has a vital function in human daily life. movement is a very necessary aspect of human existence; as things have to be moved around at different points in time. due to this reason, transportation systems have developed over time, alongside evolving speed and efficiency systems. currently, we cannot imagine a world without access to sufficient, effective, and adequate means of transportation. continuous access to transport systems has influenced the economy [6].many businesses and industries now require efficient and quick transport systems to enable fast delivery and provision of raw materials and products. to also maintain stable ventures that can generate revenue. the economy relies on access to dependable and effective transport systems that will bring about the possibility of speedy trading to spread across a broader range of stakeholders. transport provides numerous employments and job offers within the employment sector. traffic control, pilots, captains, delivery services, and drivers are some illustrations of the job opportunities that are provided through the transport industry. when individuals look for jobs or premises for their businesses, one of the main factors they consider is the commute. they usually find great access to transport and this is a major consideration that determines how good a location is. improving transport links improves an area’s popularity and subsequent development. this is why; several bridges and roads are constantly under construction [6]. it is important to reduce costs incurred in traveling, which consumers and businesses are subjected to while making transportation easier. in developing and developed economies, transport continues to play a crucial role in the socio-economic lives of the people. when transport infrastructure is properly linked and efficient, the environment is conducive to economic growth. however, inadequate transport systems can limit economic growth or development, due to constraints that reduce opportunities. transportation is one of the essential components of any business. moving goods from areas where production occurs to areas where they are consumed requires links from companies to customers and suppliers. it is an important activity that provides a supportive framework for the american journal of business management, economics and banking volume 1, june, 2022 p a g e | 16 www.americanjournal.org demand for goods and services while ensuring that customers can access what they need as soon as they need it. methodology for this article, land-sat imageries lifetime drone imageries of abonnema were achieved from the rivers state ministry of works to review and evaluate the present infrastructural development and how it has impacted the life and environment in abonnema and to also see the degema to abonnema link bridge constructed in 1999 and the newly constructed ring road linking abonnama to her new site. field observations and questionnaires were administered to get first-hand information on the socioeconomic impact of swamp reclamation in abonnema. supervised classification of the image processing were adopted to determine the percentage of land cover in the study area. results and discussion over the years the population of abonnema has multiplied which has triggered the need for the expansion of land capacity, especially after the construction of the degema-abonnema link bridge that has made it possible for residents to be based in abonnema and work in other nearby local governments in rivers state, during my interaction with some the stakeholders of abonnema, it was deduced that that because of the small capacity of land they experienced a slow pace of infrastructural development such as roads, industries, new homes, hotels to accommodate residents and visitors coming in for events such as weddings, burial, and the famous abonnema beach carnival. figure 5 showed that abonnema is surrounded by water and swamp making boats and canoes the only access into and out of abonnema before swamp reclamation paved way for infrastructural development such as the bridge you see in figure 5 figure 1: the supervised image classification showed that the built-up area covered 373,451sm, followed by the mangrove area which covered 286,345sm, while the un-built area covered 106,526sm, followed by the swamp area at 50,918sm, then the river which is the least with 2,852sm. it is predicted that as long as the population of abonnema residents increases, the need for more land for infrastructural and agricultural activities is still on the high demand, land reclamation will be a continuous welcomed activity in abonnema, which will lead to the increase in built-up area and a decrease in every other land cover area. american journal of business management, economics and banking volume 1, june, 2022 p a g e | 17 www.americanjournal.org figure 1: land cover classification of abonnema figure 2: land-sat imagery of abonnema showing the link road to ogoin piri american journal of business management, economics and banking volume 1, june, 2022 p a g e | 18 www.americanjournal.org figure 3: land-sat imagery of abonnema and degema figure 4: land-sat imagery of abonnema american journal of business management, economics and banking volume 1, june, 2022 p a g e | 19 www.americanjournal.org figure 5: abonnema drone view figure 6; abonnema ring road drone view source-rivers state ministry of works american journal of business management, economics and banking volume 1, june, 2022 p a g e | 20 www.americanjournal.org figure 6 showed one of the socio-economic benefits of swamp reclamation in abonnema which is the recently constructed ringroad that links you directly to the new site (ogoinpiri) through the back of the abonnema cemetery without having to drive through the main town. figure 7 marital status of respondents showed a high percentage of married residents and a low percentage of single residents in abonnema figure 7 marital statusof respondents figure 8 showed that a very high percentage of residents are comfortable with swamp reclamation and a very low percentage of residents and not happy with reclamation activities in abonnema figure 8 respondents comfortable with swamp reclamation figure 9 showed a very high percentage of residents that have not attained any level of education and a very good percentage of respondents that have attained primary, secondary, and tertiary education in abonnema 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% single married divorced widowed abonnema 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% yes no abonnema american journal of business management, economics and banking volume 1, june, 2022 p a g e | 21 www.americanjournal.org figure 9 educational attainment of respondent figure 10 showed the socio-economic implications of swamp reclamation in abonnema figure 10 socio-economic implication of swamp reclamation in abonnema conclusion transportation plays a very major role in urban and rural development because it aids the movement of humans, animals, and goods from one location to another which is essential for the development of civilization. transport is the foundation of any society. economies thrive on having the right infrastructure that consists of features such as proper road links and modern airports. many industries require transport to improve their businesses. workers depend on transport to fulfill their obligations. good transportation promotes business ventures by enabling the workforce to move around safely and quickly. before swamp reclamation took place in abonnema, the only available mode of transportation was water. this article reviled that one of the major benefits of swamp reclamation in abonnema is the construction of the degema to abonnema link bridge, which has on the other hand improved their livelihood. the second benefit of swamp reclamation in abonnema is the newly constructed ringroad 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% primary secondary tertiary non-educated abonnema 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% infrastructure income occupation employment livelihood abonnema american journal of business management, economics and banking volume 1, june, 2022 p a g e | 22 www.americanjournal.org that links you directly to the new site (ogoinpiri) through the back of the abonnemacemetery as you can see in figure 4. swamp reclamation in abonnema has triggered the expansion of land capacity, created more land for infrastructural development such as roads, hotels, schools, and residential buildings in return for creating easy access in and out of the town and new jobs opportunities for the residents. references 1. akue .l. oscar (2020) basic element of urban and regional planning, (pp 153-187) published: stenkpebacomputers. 2. aroloye o. n. (2020) the impact of land reclamation on mangrove forest and coastal areas in the niger delta, nigeria. published: january 8th 2020, dol :10. 5772/interchopen 3. aroloye. o. n. (2019) mangrove habitat loss and the need for the establishment of conservation and protected areas in the niger delta, nigeria, (pp, 1-15) publisher: interchopen. 4. ayorinde .o.a; okunada k.m; agboola.d.m; &adesokan z.a. (2016) the impact of wetland restoration on fish production.published: american geographical union ocean meeting. 5. impoff (2020) importance of transport in different aspect of life, published: march 4th. 6. powter, c. b. (2002). prepared by department of community health/governor’s council on physical fitness, health & sports alberta environment. 7. huxham m, kumara mp, jayatissa lp, krauss kw, kairo j, langat j mencuccini m, skov m, bernard k (2010) intra and inter-specific facilitation in mangroves may increase resilience to climate change threats. philos trans r soc lond b american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 136 www.americanjournal.org promotion of foreign trade in the country's economy b. z. arzimatov assistant, fergana polytechnic institute, fergana, uzbekistan e-mail: b.arzimatow@gmail.com a b s t r a c t k e y w o r d s in this article, the issues of encouraging the country's export policy, strengthening foreign trade relations with foreign countries and eliminating some obstacles, ways to increase the country's export potential, and several proposals are put forward. trade, export, investment, concession, tax, enterprise, excise, realization, commodity, logistics, insurance, incentive, compensation, market. introduction in uzbekistan, consistent efforts are being made to increase the export potential and provide comprehensive support to exporting enterprises. in the context of the global economic crisis caused by the consequences of the covid-19 pandemic, further promotion of export activities of business entities is one of the important priorities [1,2]. "uzbekistan supports the summary of the implementation of "prospects 2025", which is the main document of our organization. we believe that it is time to develop a conceptual document "strategic goals of economic cooperation 2035" that defines the future priority areas and branches of our organization based on a deep analysis of the great opportunities that are not yet being used. from the speech of the president shavkat mirziyoyev [1-6]. this document focuses on facilitating trade in goods and services, eliminating technical and notary barriers, digitizing customs, phytosanitary and veterinary procedures, and developing electronic trade. according to preliminary calculations, through these measures, it is possible to double the volume of mutual trade by 2035," president shavkat mirziyoyev said [7-9]. the decree of the president of the republic of uzbekistan "on measures to further expand financial support for export activities" adopted on october 21 of this year is a logical continuation of the measures taken to promote exports in the country. in recent years, the development of trade is considered as the main direction of the economic reforms being carried out in uzbekistan. the government has been implementing a number of measures to reform this sector, simplify and optimize its procedures, remove tariff and non-tariff barriers, expand export nomenclature and geography. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 137 www.americanjournal.org the main part in the field of customs administration, customs duty rates have been halved, import rates for more than 3,500 types of products and excise taxes for more than 1,000 types of products have been reduced to zero. at the same time, an automated management system was introduced, the procedure for requesting unnecessary documents during export-import operations was canceled, and a "single window" customs information system was introduced [9-12]. similar work was carried out in the field of tax administration. in particular: • payable taxes were reduced from 13 types to 9 types; • the right of tax authorities to collect tax debts at the expense of the taxpayer's debtors has been canceled; • the practice of granting tax benefits and preferences only in accordance with the tax code was introduced; • a favorable tax system for entrepreneurs was created, the value-added tax rate was reduced from 15% to 12%, and an accelerated vat refund procedure was introduced; • the procedure for pre-trial settlement of tax disputes was established and liability measures were determined depending on the type of tax offense; • instead of 4% to 25% sales tax rates, a single 4% tax rate was introduced; • the profit from the realization of exports was fully exempted from tax (from november 1, 2022); also, as a result of the reduction of taxes and tax benefits, funds remained in the accounts of business entities, and their working capital increased (it is expected that 14 trillion sums will remain at the disposal of entrepreneurs). in addition, in recent years: • the procedure for compulsory sale of foreign exchange earnings from exports was completely canceled for all exporting enterprises; • the right to export goods and services in foreign currency without guaranteed payment (advance payment, letter of credit, bank guarantee and insurance); • it was allowed to export goods with a total value of no more than 5,000 us dollars without submitting a customs declaration; • benefits were provided for profit tax and single tax payment from legal entities for the part corresponding to the volume of export sales of products; at the same time, the chamber of commerce and industry helped more than 600 business entities to export products worth 548.7 million dollars to foreign countries in the last period. comprehensive measures for financial support of exporters have been developed and implemented, in particular, products with the presidential decree "on additional measures to support participants in foreign trade activities" subsidies are provided to local enterprises to cover transport costs for export, and costs related to accreditation and certification are covered by the export promotion agency. the export promotion agency under the ministry of investments and foreign trade is an authorized body for implementation of practical measures to support local exporters. it compensates exporters for participation in international exhibitions and fairs, for the release of national products and brands to foreign markets, and for obtaining international standardization and international certificates. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 138 www.americanjournal.org because of this, the export geography of uzbekistan is also increasing. in particular, this indicator has been expanded to include the markets of 52 new countries, silk women's shirts to italy and latvia, copper wire products to cameroon, sewing machines to turkey and iran, washing machines to moldova, national musical instruments to israel, mosh flour to korea and automobile spare parts were delivered to angola for the first time. statistics agency according, the volume of foreign trade turnover increased by 22.1% compared to the corresponding period of the previous year. in this case, export 17.7 billion, import 27.0 billion dollars. china (21.1 percent), russia (15.7 percent), kazakhstan (7.2 percent), turkey (5.3 percent), and the republic of korea (3.8 percent) have a relatively significant share of foreign trade turnover. . in january-september 2023, uzbekistan established trade relations with 193 countries of the world. experts of the institute of macroeconomic and territorial studies will assess the export of fruit and vegetable products of uzbekistan in january-august 2023 analyzed. peaches (nectarines, 8.8 percent), cherries (6.9 percent), onions (6.9 percent), grapes (6.1 percent), raisins (5.5 percent) have the largest share in the export of fruits and vegetables. , apricots (4.3%), melons, watermelons (4.8%) and tomatoes (3.3%). during the first 8 months of the year, 1 million 246.9 thousand tons of fruit and vegetable products with a total value of 763.6 million dollars were exported to foreign countries. this is 16.7 percent more than in the same period of 2022. the share of fruits and vegetables in the total volume of export was 4.6 percent. the main export markets of fruit and vegetable products of uzbekistan are russia (42 percent), pakistan (15.4 percent), kazakhstan (12.1 percent), kyrgyzstan (8.4 percent), china (8.3), turkey (2.2 percent), belarus ( 1.6 percent), afghanistan (1.3 percent), iran (0.9 percent), iraq (0.9 percent). "in 2022, uzbekistan exported 81,800 tons of watermelons. this year, the country left this record behind and managed to sell nearly 96 thousand tons of watermelons to foreign markets in mayaugust. by the end of this september, uzbekistan may exceed the historical limit of 100,000 tons for the first time. the above figures show that the measures to stimulate the foreign market are bearing fruit, and it is not only the basis and support of the country's economy, but also the reason for the growth of people's lifestyle. references 1. decree of the president of the republic of uzbekistan dated 05.07.2020 no. pq-4707 "on measures to further support export activity"; 2. 24.08.2022 of the president of the republic of uzbekistan. decree no. pf-198 "on measures to reliably protect the inviolability of property rights, prevent unreasonable interference in property relations, and increase the level of capitalization of private property"; 3. resolution of the cabinet of ministers of the republic of uzbekistan no. 46 of 30.01.2020 on measures to further improve the activities of the export-import national insurance company "uzbekinvest"; 4. decree of the president of the republic of uzbekistan dated 28.01.2022 no. pf-60 on the development strategy of the new uzbekistan for 2022-2026"; https://t.me/ifmr_public/4494 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 139 www.americanjournal.org 5. arzimatov b.z., askarova r.n. experience of foreign countries in relations between manager and employee //current approaches and new research in modern sciences. 2023. t. 2. no. 9. s. 36-39. 6. arzimatov b., kholmatov b. small business and entrepreneurship development-a main criteria of the country's economic growth //archivarius. 2021. t. 7. no. 2 (56). s. 60-62. 7. arzimatov b. the role of the leader in the systematic organization of management relations //american journal of business management, economics and banking. 2023. t. 16. p. 157160. 8. arzimatov b.z. management system improvement trends //miasto przyszłości. 2022. s. 98101. 9. http://www. gov.uz (government portal of the republic of uzbekistan) 10. http://www.mf.uz(ministry of finance of the republic of uzbekistan) 11. http://www. ziyonet.uz (information and education network) 12. http://www. lex.uz (national database of information on legislation of the republic of uzbekistan) http://www.mf.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 47 www.americanjournal.org macroeconomic factors of increasing the ranking in the global innovation index numanov kamolitdin farhadovich independent applicant, research center "scientific bases and issues of economic development of uzbekistan" at tsue a b s t r a c t k e y w o r d s the article examines the macroeconomic factors for improving the rating in the global innovation index (gii), in particular, based on the analysis of the methodological framework, groups data sources and macroeconomic indicators of the gii, and identifies quantitative indicators of the index.. global innovation index, rating, cost subindex, results sub-index, indicators, indicators, ratio, macroeconomics. introduction: in the process of transition from an industrial society to a knowledge economy society, innovation and innovative activity is a key factor in competitive advantage. it can manifest itself both in the ability of firms, regions and countries to adapt to new constraints, as well as in their willingness to seize new opportunities. to realize the social potential, the innovation policies of countries should promote renewal in all sectors of the economy, and not just focus on high-tech industries. therefore, scientists and experts are faced with the task of identifying new ways and methods that allow all parts of the economic system to be adapted to each other, to build their dialogue that can unlock the country's innovative potential1. materials and methods research in the field of innovation theory is carried out at three levels: macro-, mesoand micro-. at the macro level, mainly the issues of the impact of innovation on economic growth are considered, the main attention is directed to the problems and prospects for the development and diffusion of innovations in countries2. meso-level research is concentrated in the field of relations between firms, research institutes and government bodies, here the mechanisms of the functioning of the national innovation system are investigated. through the norms and rules fixed by legal, tax, financial institutions, including 1 kirdina-chandler s.g., deryabina m.a. mesoeconomics: state and prospects / monograph. 2018. p.234. 2 taylor m.z. (2016). the politics of innovation. why some countries are better than other at science and technology. oxford: oxford university press. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 48 www.americanjournal.org innovation support institutions, the integration and coordination of the efforts of the main participants in this activity is ensured. the micro level refers to the dynamics of innovation within firms and organizations. here, research is related to the search for ways for the emergence and development of innovations by economic entities, the creation of an innovative climate in organizations, etc.3. the global innovation index (gii) is an annual ranking and analytical review of more than 130 countries and territories in the field of innovation, which has been conducted since 2007 by the insead business school, the world intellectual property organization and cornell university (usa). the index ranks countries and territories in terms of annual innovation performance by region and income group. the index makes it possible to assess the quality and effectiveness of institutions, the state of innovation or changes in the business environment. entry and improvement in such indices is necessary for any developing country, since independent indicators are barometers of the country's socio-economic development, and are also often taken into account by large international investors when deciding to invest in the economy of a particular developing country4. gii has a close positive relationship with the level of economic development of countries and the rate of economic growth. on the one hand, more developed countries have more economic leverage to stimulate innovation, but on the other hand, macroeconomic research shows that innovation is a fundamental driver of economic growth5. however, the gii is not a definitive ranking that evaluates innovative development. assessing the results of innovation activity remains difficult, so much attention is paid to assessing the climate and infrastructure for innovation. gii methodology. the gii methodology is based on over 130 country/economy profiles, including data, rankings, strengths and weaknesses 80 data tables for indicators from over 30 international public and private sources, of which 57 are hard data, 18 composite indicators and 5 questions for surveys. all gii calculations based on this methodology are annually verified by the joint research center (jrc) of the european commission6. while the outcomes are based on multiple rankings, the gii focuses more on improving “ways” to improve measurement of innovation and identifying targeted policies, best practices, and other levers that drive innovation. likewise, an advanced data scorecard by index, sub-index, or indicator level can be used to monitor performance over time and compare developments to economies in the same region or by income group classification. the annual gii ranking builds on previous rankings, allowing countries to track the progress of their ongoing reforms to build an innovative economy. the calculation methodology is based on the analysis of factors influencing annual changes in the gii ratings and is calculated as the arithmetic mean of two groups of indicators sub-indices: contributions 3 mcgrath r. (2010). innovation is equal parts politics and news ideas // harvard business review. hbr.org/2010/06/innovation-its-as-muchabout-p.html. 4 salakhodzhaev r. why should uzbekistan improve its position in the global innovation index.https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom-innovatsionnom-indekse 5 salakhodzhaev r. why should uzbekistan improve its position in the global innovation index.https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom-innovatsionnom-indekse 6 the joint research center (jrc) is the science and knowledge service of the european commission, which employs scientists to conduct research in order to provide independent scientific advice and support for eu policy. https://ec.europa.eu/jrc/en https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom-innovatsionnom-indekse https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom-innovatsionnom-indekse https://ec.europa.eu/jrc/en american journal of business management, economics and banking volume 13 june, 2023 p a g e | 49 www.americanjournal.org to the development of innovation the sub-index of costs (innovation input) and practical results in the development of innovation the sub-index of results (innovation output) (figure -1). the sub-index of costs (innovation input) measures the elements of the national economy that embody innovation activity, grouped into five components: 1. institutions; 2. human capital and research; 3. infrastructure; 4. market development; 5. business development. the innovation output sub-index reflects the performance of innovations divided into two components: 6. results in the field of knowledge and technology; 7. results of creativity. the report ranks countries/economies and scores them on a 100-point basis with appropriate ranking positions, i.e., 80 indicators are normalized in the range of 0-100 points (high scores represent better results) based on a maximum and minimum value method (excluding indicators in surveys and other international indices, in which the initial data are presented in the range of minimum and maximum values). in particular, the unpan (0.1), world economic forum executive opinion survey (1.7) and world governance indicators (0.100) indicators. for indicators where the value grows with the highest scores, the formula (goods) is applied: for indicators where the value grows with low scores, the formula (bads) is applied: 4 indicators of the gii rating are included in the doing business index (world bank), 4 indicators the global competitiveness index (wef), 4 indicators worldwide governance indicators, 1 indicator the electronic government (e-government survey, un). to provide a complete picture of macroeconomic indicators and compare countries by level of innovative development, data from various sources (provided by international organizations and financial institutions) are used with various base years available. the data in the gii are normalized using the gdp or population of a country for cross-country comparisons. to assess countries in the gii ranking, there is a minimum data coverage (at least 35 indicators in the group of contributions to innovation development 66%, at least 18 indicators in the group of results in innovation development 66%). at the same time, indicators with missing data are not taken into account in the calculations, i.e., the lack of data for countries affects the index estimates of other countries. outliers are defined by skewness or kurtosis (skewness factors greater than 2.25 or kurtosis greater than 3.5). the following formula is used to fix the drop-down data issue: where: max is the maximum value in the data series; min is the minimum value in the data series. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 50 www.americanjournal.org research results. the gii consists of 7 main areas: management institutions; human capital and research; infrastructure; market development; business development; knowledge and technology outcomes; creative results. these directions are based on 21 structural sub-blocks (figure-1). picture 1. main directions global innovation index (gii)7 table 2 elements global innovation index 8 composite element значение position index arithmetic mean of sub-indices the position among all countries is calculated based on the values subindex each sub-index is calculated as the arithmetic mean of the constituent blocks blocks each block is calculated as the arithmetic mean of the composite subblocks (each subblock has a coefficient) subblocks each block is calculated as the arithmetic mean of composite indicators (each indicator has a coefficient) indicators each indicator has a separate calculation formula and is given a score from 0 to 100 based on the values obtained. the country with the lowest score gets 0 and the country with the highest score gets 100 7 "the global innovation index 2015". r.9. 8 the global innovation index (gii) is the position of the republic of uzbekistan in the ranking. ministry of innovative development of the republic of uzbekistan. t. 2020. p.7. global innovation index (average) innovation efficiency ratio (ratio) innovation resources innovation results institutes human capital and science infrastruct ure development of the domestic arket business development development of technology and economy the development of creative activity. political culture legislative framework business environment education higher education niokr ict basic infrastructure ecological stable. credits investments trade and competition employee knowledge innovative connections acquisition of knowledge knowledge creation dissemination of knowledge impact of knowledge intangible assets creative goods and services online creativity american journal of business management, economics and banking volume 13 june, 2023 p a g e | 51 www.americanjournal.org indicators of 21 structural sub-blocks are formed on the basis of the results of 80 indicators that cover the areas of socio-economic and institutional development of the country (table-3). table-3 main directions global innovation index (gii)9 1. institutions 1.1.political environment: 1.1.1. political and operational stability 1.1.2. government efficiency 1.2. legislative framework: 1.2.1. regulator quality 1.2.3. the cost of dismissal due to staff reduction, salary weeks 1.2.2. law supremacy 1.3. business environment: 1.3.1. ease of starting a business 1.3.2. ease of resolution of bankruptcy 2. human capital and research 2.1. education: 2.1.1. expenditure on education (% of gdp) 2.1.4. grades in reading, math, and science 2.1.2. public funding per student, average, % of gdp per capita 2.1.5. student-teacher ratio, secondary education 2.1.3. duration of education 2.2. higher education: 2.2.1. admission to higher education institutions (% of total applicants) 2.2.2. graduates of the faculties of natural sciences and engineering, % share of foreign citizens in higher educational institutions (%) 2.3. research and development (r&d): 2.3.1. researchers (equivalent to full-time workload per population in millions) 2.3.3. global r&d companies, average spending us$ million 2.3.2. gross expenditure on research and development (% of gdp) 2.3.4. average score of the top 3 universities by qs ranking 3. infrastructure 3.1. information and communication technology (ict): 3.1.1. access to ict 3.1.3. government online services 3.1.2. use of ict 3.1.4. e-participants 3.2. general infrastructure: 3.2.1. electricity, mln./kw per population 3.2.2. logistics performance 3.2.3. gross capital formation, in % of gdp. 3.3. environmental sustainability: 3.3.1. gdp per unit of energy use 3.3.2. environmental indicators 3.3.3. environmental certifications iso 14001/bn. gdp ppp 4. market development 4.1. credit: 4.1.1. ease of getting a loan 4.1.2. domestic credit to the private sector, % of gdp 4.1.3. loan portfolio of microfinance organizations, % of gdp 4.2. investments: 4.2.1. ease of protecting minority investors 4.2.2. market capitalization, % of gdp 4.2.3. venture capital deals / billion gdp in ppp dollars 4.3. trade, competition and market scale: 4.3.1. applicable tariff rate, weighted average, % 4.3.2. intensity of local competition 4.3.3. volume of the domestic market, billion dollars at ppp 5. business development 5.1. knowledge workers: 5.1.1. employment in science-intensive industries, % 5.1.3. gross spending on research and development carried out by business enterprises, % of gdp 9 compiled by the author based on data from the global innovation index 2015. r.203-208. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 52 www.americanjournal.org 5.1.2. firms offering formal training, % 5.1.4. gross spending on research and development financed by business enterprises, % 5.1.5. women working with advanced degrees, % 5.2. innovative links: 5.2.1. scientific cooperation between universities and industry 5.2.3. gross spending on research and development financed by a foreign party, % of gdp 5.2.2. status of cluster development 5.2.4. joint venture/strategic alliances / billion gdp in ppp dollars 5.2.5. patent applications filed with two offices / billion gdp in ppp dollars 5.3. knowledge absorption: 5.3.1. payments for intellectual property, % of total trade 5.3.3. import of ict services, % of total trade 5.3.2. high technology imports, % of total trade 5.3.4. net fdi inflow, % of gdp 5.3.5. research talent in business (% of private enterprises) 6. knowledge and technology 6.1. knowledge creation: 6.1.1. patent applications by origin / billion usd ppp gdp 6.1.3. utility models by origin / billion gdp in ppp dollars 6.1.2. international applications for international cooperation in the field of patent cooperation / billion usd ppp gdp 6.1.4. scientific and technical publications / billion gdp in ppp dollars 6.1.5. citation of documents (h-index h-index) 6.2. knowledge influence: 6.2.1. growth rate of gdp per worker at ppp,% 6.2.3. spending on computer software (% of gdp) 6.2.2. number of new enterprises per capita from 15 to 64 years 6.2.4. iso 9001 quality certifications / billion gdp ppp 6.2.5. high-tech and medium-tech production, % 6.3. dissemination of knowledge: 6.3.1. receipts from intellectual property, % of total trade 6.3.3. export of ict services, in % of total trade 6.3.2. чистый экспорт высокотехнологичных товаров, в % от общего объема торговли 6.3.4. чистый отток пии, % ввп 7. creativity 7.1. intangible assets: 7.1.1. trademarks by origin / billion usd ppp gdp 7.1.3. industrial designs by origin / billion gdp in ppp dollars 7.1.2. global brand value, top 5,000, % of gdp 7.1.4. creation of ict and organizational model 7.2. creative goods and services: 7.2.1. export of cultural and creative services, % of total trade 7.2.3. entertainment and media market / d. pop. 15-69 7.2.2. created national feature films / mln. 15-69 7.2.4. printing and other media, % production 7.2.5. export of creative goods, % of total trade 7.3. internet creativity: 7.3.1. generic top-level domains (tlds) / populated. 15-69 7.3.3. annual changes in wikipedia / min pop. 15-69 7.3.2. country top level domains (tlds) / number of inhabitants 15-69 7.3.4. creation of mobile applications / billion gdp in ppp usd based on the indicators in table-6, it can be concluded that out of 109 sub-indices, 31 are directly related to the areas of macroeconomics. accordingly, the positive results of these sub-indices will indicate the positive results of the country's macroeconomic indicators. literature 1. kirdinoy-chandler s.g., deryabina m.a. mesoeconomics: state and prospects / monograph. 2018. p.234. 2. taylor m.z. (2016). the politics of innovation. why some countries are better than others at science and technology. oxford: oxford university press. 3. mcgrath r. (2010). innovation is equal parts politics and news ideas // harvard business review. hbr.org/2010/06/innovation-its-as-muchabout-p.html. american journal of business management, economics and banking volume 13 june, 2023 p a g e | 53 www.americanjournal.org 4. salakhodzhaev r. why should uzbekistan improve its position in the global innovation index?https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom innovatsionnomindekse 5. «the global innovation index 2015». р.9. 6. the global innovation index (gii) is the position of the republic of uzbekistan in the ranking. ministry of innovative development of the republic of uzbekistan. t. 2020. p.7. https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom%20innovatsionnom-%20indekse https://cabar.asia/ru/pochemu-uzbekistanu-stoit-uluchshit-pozitsii-v-globalnom%20innovatsionnom-%20indekse american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 10 www.americanjournal.org arrogant leadership behavior and its role in developing organizational zombies in the workplace exploratory study in al-najaf teaching hospital ph.d. hamed adel abbas al-nasrawi college of education kufa university hamida.alnesrawi@uokufa.edu.iq a b s t r a c t k e y w o r d s the current study aims to understand the nature of the relationship between conceited leadership behavior and organizational zombies in the workplace at najaf teaching hospital in najaf governorate. this is significant because it addresses two critical aspects of the organizational environment and establishes the right foundations and treatments to deal with a real issue that has a direct impact on the working environment in one of the most important institutions in the country. 200 questionnaires were given out to both male and female hospital personnel using the random sample approach by the researcher. the advanced statistical program amos.v.24 and the statistical program spss v.27 were used to examine the 190 questionnaires that were retrieved and the 182 that were appropriate for statistical analysis, with a response rate of 91% of the retrieved questionnaires. theoretical findings revealed a knowledge gap about the connection between haughty leadership and workplace zombies in organizations generally and najaf teaching hospital specifically. arrogant leadership, zombies in the workplace, najaf teaching hospital. introduction according to common definitions of arrogance, it is a term that dates back to ancient greek culture. according to johnson et al. (2010), p. 405, arrogance is characterized as a strong sense of superiority and excessive self-confidence that manifests itself in exaggerated claims of self-importance(johnson et al,:2010,p:405).while it was described by. toscano et al., 2018,p:3) it is a sense of superiority and exaggerated self-importance, behaving in an arrogant manner and arrogant claims, meaning in latin, “the claim of a favor to which one is not entitled.” so when leaders exaggerate feelings of superiority, it is difficult to connect with them and interact with them. this was confirmed by one study that arrogant bosses are difficult to interact with and that these traits cause unfavorable reactions in employees . kowalski et al. (2003) also indicated that arrogant leaders are less prosocial, less admired and respected by employees, consider others in decreasing roles and consider themselves superior, and claim to be very knowledgeable compared to others. in addition, some scholars have shown that arrogant leaders are reluctant to listen to the opinions of others and oppose directing learning, as they often fail to form winning groups and teamwork. thus, when employees realize such an environment american journal of business management, economics and banking volume 15 august, 2023 p a g e | 11 www.americanjournal.org of insecurity, lack of reciprocity, and lack of trust, this leads to the behavior of concealing knowledge and suppressing vocal behavior among employees, so it can be concluded that the traits of the arrogant leader will influence the creation of the fearful and terrifying model among employees (alnasrawi, 2023, p: 20); (kumar et al, 2022, p: 73). this was confirmed by (das, 2015, p:8) that the behavior of arrogance in the workplace is a common phenomenon in all organizations. arrogance behavior is one of the behavioral traits that impede the development of relationships in the workplace and cause an uncomfortable climate within the organization. therefore, arrogance in the workplace is an insulting behavior that an individual shows to prove his superiority over others. which affects personal relationships and causes increased stress for employees. it should be noted that the theory of arrogance and developed capabilities states that the degree of arrogance of leaders escalates as a function of increasing levels of insecurity and a way to compensate for their perceived shortcomings, and that this degree of arrogant behavior will affect job performance and ultimately personal capabilities, which thus determines performance organization and its productivity. this theory has explained the relationship between the behavior of arrogance and its capabilities and its impact on the productivity and performance of organizations, and that the rise in arrogance behavior will reduce performance and productivity levels, and if the organization wants to achieve the maximum amount of productivity, it must limit the arrogance behavior that may arise as a result of possessing people certain estimators (pañares et al., 2013, p:76). as for organizational zombies, the growing levels of corruption in business and government organizations create layers of selfishness in work environments. the transformation of working individuals and even organizations into physical, power-hungry, self-centered entities is an infectious disease. through this infectious disease, workers work to spread negative, immoral, corrupt and even illegal organizational cultures and turn them into a rule or lifestyle, which is called zombies in the workplace. which suggests toxic and immoral work environments, workers who undermine performance and productivity, organizations and organizational leaders who support these activities, a lack of positive role models who foster cooperation and support, and this is sufficient to cause stagnation in the knowledge bases of both leaders and employees.( al-nasrawi et al, 2018, p:18) ; (renz & stone, 2020, p: 1-2). as for the organizational level, both (silva & gonçalves, 2022, p:1) indicated that zombie organizations are organizations with low levels of performance and profitability, low productivity, and their age may not exceed ten years. these organizations may continue due to the support of banks and governments, as they rely heavily on external borrowing sources. in addition, these organizations have a negative impact on their counterparts from other healthy organizations, as they reduce the investment spending of the latter and the productivity of the workforce. in the same context, one of the researchers stated that zombies in the workplace refer to working individuals who are unconscious, devoid of spirit, devoid of energy, who do not have any meaning to their lives and work, and have no connection with the organization and are only financially connected to it, as there is no place another to go to. these individuals represent a major threat to the organization, as they infiltrate all levels of employees, influencing them negatively with pessimism and undermining the mission, vision, and future existence of the organization. in addition, they cause the destruction of the organization from the inside out if the organization does not work to deter them, or the leaders do not work to eradicate them at all levels and before their spread, by american journal of business management, economics and banking volume 15 august, 2023 p a g e | 12 www.americanjournal.org excluding them, or for the human resources department to renew the recruitment process to avoid allowing the zombie virus by entering the organization and spreading within it (hacker, 2009, p:25). 2a list of the main concepts used in previous literatures which is related to the concepts of this research. 2-1the concept of arrogant leadership behavior and its dimensions relevant studies and literature have shown that the traits of leaders deeply affect the behavioral outcomes of employees as a result of the influential role of leaders in determining the wide range of behavioral outcomes of employees. therefore, arrogance is defined as "a set of behaviors that convey a person's exaggerated sense of superiority, which is often achieved by exalting their self-worth compared to others, and belittling them. for example, an arrogant leader sees employees' ideas and responses as less valuable, and even claims to be more capable and knowing and controlling them, exaggerating his self-importance and knowledge, thus publicly disparaging the opinions and propositions of others, distorting their reputation, and cultivating a toxic social environment for them (kumar et al, 2022, p:73), table (1) below provides definitions of various examples of leadership arrogance in light of the aforementioned. table (1) definition of arrogant leadership the definition researcher and year the set of consequences and destructive behaviors that arise from decisions that reflect false self-confidence contrasted with true overconfidence that bears no negative consequences. (johnson,etal,2010,p:405) leaders engage in behaviors aimed at amplifying a person's sense of superiority by belittling others and attempting to project omnipotence. (silverman et al,2012,p:22) having or expressing an exaggerated opinion of self-importance or worthiness and being too vain and too proud. (das,2015,p:2) a leader's tendency to engage in behaviors that convey an exaggerated sense of superiority by valuing their own ideas and belittling those around them. (borden et al, 2018:2) the leader's self-esteem and the excessive claim to dignity and ranks that glorify self-esteem and the love of power. (kumar et al,2022,p:74) as for the dimensions of arrogant leadership, a number of researchers (johnson et al., 2010) agreed (jamil et al.,2022, p:404) on three dimensions (arrogance, dominance, and anger), which represent the appropriate perception of the behavior of the arrogant leader, which we list it as follows (2017: 3 (borden, 2018: 3), (borden & silverman), (novaco, 2016, p: 285): 1-vanity: leaders claim to know better than others in all situations, and often assert authority in contexts in which they do not have the required information. also, arrogant leaders do not attach much importance to other people's ideas and input, minimize comments, claim to be more knowledgeable than the rest, and belittle and despise those around them. 2dominance: in any given situation, arrogant leaders are thought to act in ways that suggest they believe they know more than anyone else, making decisions that have an impact on others without seeking their input, assuming authority in situations where they are insufficiently informed, and american journal of business management, economics and banking volume 15 august, 2023 p a g e | 13 www.americanjournal.org ignoring constructive criticism. it is a fundamental trait of arrogant people and one of the most divisive ideas in behavioral research. 3. anger: an emotional response to threats to survival or the result of stressful experiences. emotion is usually basic with biological, psychological and social adaptive functions. it is usually experienced subjectively as a provocative state of hostility towards someone or something that is perceived as the source of an aversive event. 2-1-1characteristics of arrogant leadership behavior it is no secret that humans are conscious beings that have emotions and can easily be influenced by others. an arrogant leader is able to push his followers positively or negatively. this leads to it being highly valuable or toxic because it can lead individuals to exceed their potential. this is useful in situations that require immediate change. arrogance can be demonstrated by all individuals within an organization, regardless of their roles as leaders or subordinates. research has also indicated that arrogance elicits negative reactions from other people in the workplace. as well as the difficulty of dealing, communicating or interacting with arrogant individuals, as they are considered less likely to be respected or admired (borden et al, 2018:2), while silverman & johnson (2012) found that arrogant behavior is linked to a variety of personal and organizational issues. arrogant people struggle with interpersonal interactions, make the workplace uneasy and stressful for others, and receive poor performance reviews. in the end, this may have an impact on client happiness, brand loyalty, and interpersonal connections between team members or a leader and subordinate. in the same context, (18-19 2017, p: borden) explained that arrogance in the workplace is linked to a number of problems, which we explain as follows: 1arrogant leaders display behaviors and traits that are likely to contribute to solving personal problems in the workplace. 2. arrogant workers are less likely to engage in organizational citizenship behaviors such as helping co-workers or developing junior colleagues. 3that arrogant individuals are at risk of poor performance, particularly in areas where they are required to build or maintain relationships with others. 4arrogant leaders tend to “cultivate toxic social climates” for employees. they show lower levels of conformity and higher levels of anger, which can expose them to more hostile social interactions. 5arrogant individuals have strong individual identities, which reflect their tendency to perceive themselves as separate from and superior to others. 6arrogant individuals engage in a number of behaviors that are likely to make social interactions with them uncomfortable. arrogant leaders often give the impression that they think they know better than anyone else, and put their own agenda ahead of organizational goals. 2-2the concept of organizational zombie and its dimensions during the twenty-first century, the term zombie appeared, or what is called (the living dead). the various media, culture, television, and films have reshaped the concept of "zombies". the most notable of which is the “the walking dead” series of films, as most people, in a chaotic world, are infected with viruses and turn into zombies. these zombies do the usual running around, brawling, running, and killing in a variety of creative ways, with the goal of staying dead alive. they base this on the phrase “you die and i remain dead”, and thus this scenario is repeated in continuous episodes american journal of business management, economics and banking volume 15 august, 2023 p a g e | 14 www.americanjournal.org (kirriemuir, 2012, p:3). the term "zombie" is used in the organizational context as a metaphor to explain toxic organizational environments permeated by highly deformed working individuals, described as half-dead who prey on their victims and injure them through selfishness and the power they possess, infecting colleagues and organizations and undermining their performance and productivity. these metaphors have been introduced in many research studies to explain the causes and effects of organizations descending into unethical and even illegal activities for personal or institutional control. so the zombie concept comes to life by examining organizational design, environment, boundaries, and culture. zombie behaviors in the workplace and the mechanisms of its virus-like spread have also been explained through the theory of cognitive dissonance and the theory of clan control (renz & stone, 2020, p:1). while (wright, 2013, p:13) explained that the appearance of zombies in films is only a narrative explanation of the human condition that is generated when human resource development specialists do not defend individuals working in poorly organized and mismanaged work environments, and in light of the above, in the table ( 2) below following are several definitions of zombies in the workplace at the individual and organizational levels. table 2 definition of zombies in the workplace the definition researcher and year individual level it is the failure of working individuals to face the facts, ignore them, their failure to adapt to the organizational requirements and challenges facing them, and their tendency to negative, immoral and illegal behaviors to achieve self-interest. (gray & wegner, 2012,p:126) it refers to the behavior of working individuals who are not integrated in their workplace as a result of their lack of awareness and energy, which leads to lower levels of morale and incurs more costs for the organization. )swarnalatha & prasanna, 2013:p53( refers to spiritually dead people who routinely perform work procedures and waste the organization's resources. (strathausen, 2015,p:1) employees' continuous questioning of the credibility of leadership and management, their great lack of information sharing across work units, their low level of cooperation with their co-workers, high rates of turnover and absenteeism, failure to attend and not benefit from meetings, and a sense of separation from the organization and its customers. (al-mansoori, 2017,p:7) a reaction to cultural awareness and political and social injustice within the organization, and this reaction expresses people who are unconscious, real will, memory, and similar to the dead. (renz & stone, 2020,p:2) organizational level organizations suffer from permanent financial hardship, but they continue to work without going into restructuring themselves, and they usually incur additional costs due to the reduced use of their productive resources represented by physical and human capital. (hoshi et al., 2021,p:2) organizations with a bad track record of managing their finances, who depend heavily on banks and governments, and who are unable to fulfill their financial responsibilities. typically, they depress market pricing for their goods while increasing compensation for their workers in an effort to keep them. this leads to economic distortions. (silva & gonçalves, 2022,p:2) american journal of business management, economics and banking volume 15 august, 2023 p a g e | 15 www.americanjournal.org as for the dimensions of zombies in the workplace, many studies identified them (malesza et.al, 2019, p:862) (jones, & paulhus, 2014, p:31), with three dimensions (machiavellianism, narcissism, and psychopathy), which were called some researchers of the dark triad, which we list as follows (jakobwitz & egan, 2006, p: 332) (krizan, 2018, p: 16) (neo et al., 2019, p: 3): 1. machiavellianism: refers to personal strategies that advocate self-interest, deception, and manipulation. and the extent to which people use adjectives such as deceit, flattery, and emotional detachment to manipulate social and personal interactions. 2. narcissism: it is related to the use of social influence tactics, a lack of empathy, a sense of entitlement, superiority, greatness, dominance, and an interest in pleasing others to gain external validation, and that narcissistic individuals usually see their needs and goals as more important than others as they show an exaggerated sense of importance, entitlement, selfishness and arrogance emotional preoccupation with oneself. 3.pychopathy : an individual's personality condition in which he is marked by personal and emotional attributes embodied in being alluring and outwardly upbeat, yet he suffers from a lack of empathy and poor control over his desires. along with inciting animosity among individuals, he also exhibits excessive impulsivity, seduction, compulsion, harshness, selfishness, and aggressive dealing. 2-2-2 stages of zombies in the workplace it is well known that zombies were introduced to scholars and researchers through popular culture, who then used them in a variety of contexts, including philosophical commentary on human nature, analytic frameworks, and analogies for how social systems function. these traits make zombies appealing to academics and enable them to serve as characters through which we may test our humanity. described as "zombies" as an infectious disease passed amongst individual workers. therefore, incorporating the undead into academic work provides a tremendous opportunity for self-reflection (pielak & cohen, 2014: 44). the stages of zombie infection begin within the work environment and spread just as epidemics and other diseases spread. (renz & stone, 2020, p:5) identified four stages for the spread of zombies in the workplace, which are (patient zero, outbreak, uncontrolled spread, and the zombie project), as shown in figure (1) below: figure (1) stages of zombie spread in the workplace stage 1 patient zero: this is the first stage in which patient zero is the first person infected with a zombie and has negative self-centered behaviors and begins to spread the infection to his other colleagues. this person usually does not show signs of infection and is therefore often difficult to detect. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 16 www.americanjournal.org disruptive actions of the patient may include tardying up, absenteeism, petty theft, violation of organization policies, etc. stage 2 outbreak: during this stage, there is typically a lack of organization oversight and policy enforcement, which leads to the outbreak. therefore, from patient zero, the illness is now spreading to others within the organization. as the zombie employee starts to recognize that his actions are more consistent with his self-interest, rules, beliefs, and morals, the infection starts to spread. additionally, he becomes stronger and more self-centered, which makes his coworkers view him favorably.when there is a zombie epidemic, the zombie employee mentally separates his targets into those who are part of groups (those who support zombies) and those who are not (those who do not support zombies). people who are part of close-knit, supportive groups get the disease more quickly than those who are part of outgroups. at this point, zombie conduct starts to blend in with organizational culture and start to become new norm. stage 3 uncontrolled spread: as the zombie infection spreads quickly throughout the organization and among all people at different levels, zombie rewards become appealing, and the organization is unable to control the spread because zombies are given power either legitimately or through coercion. the staff zombies can now spread the contagion without interference from the non-zombies. all operations are directed toward advancing self-interest, and organizational policies are either completely disregarded or fully rewritten. stage 4 – zombie enterprise: the fourth stage is called the zombie enterprise, where zombies are realized in the workplace and the infection of this disease consumes the entire organization and turns it into a soulless entity. at this point, the organization is operating entirely for gains regardless of laws, regulations, or codes. they use every resource at their disposal to exploit others and focus only on their own interests. 3proposed research model and hypotheses the framework, based on dissonance theory , arrogance-competence and clan control theory, is conceptualized based on a number of previous studies (jamil et al.,2022,p:404); (johnson et al., 2010);(borden & silverman ,2018:3);)novaco ,2016,p:285(;(borden & silverman ,2018:3);)howard & vanzandt, 2020,p:6) (jones, &paulhus,2014,p:31), then, the research framework of the present research is shown in figure 2. figure 2: theoretical framework american journal of business management, economics and banking volume 15 august, 2023 p a g e | 17 www.americanjournal.org according to theoretical framework of this research, the hypotheses are formulated as: h1: there is a positive and significant influence of arrogant leadership (al) on to zombies in workplace. (zw). h2: there is a positive and significant influence of the arrogant leadership (al) dimensions on to zombies in workplace. (zw). 4. methodology 4.1 target audience the population in the current study is all of the personnel at al-najaf teaching hospital in iraq. 4.2 sample and procedures based on the use of random selection techniques, only 200 employees received surveys, which were personally delivered and collected between january and february 2023. 190 questionnaires were ultimately received.182 were valid for statistical analysis. 4.3 measures in the current research, the 39 measurement items were modified from (jamil et al.,2022,p:404) for arrogant leadership, (malesza et.al,2019,p:862),(jones & paulhus,2014,p:38) for zombies in the workplace. moreover, present study seeks to measure all variables by using a 5-point likert scale where survey question is referred to agreement degree (i.e. 1 = strongly disagree, and 5 = strongly agree). 4.4 the response rate in order to guarantee that the sample accurately and sufficiently represents the research community, the researcher directly distributed (200) questionnaires to a random sample of najaf teaching hospital employees for the period (from 3/1/2023 to 3/2/2023), and after retrieving (190) questionnaires, it was discovered that the number of valid questionnaires for statistical analysis reached (182), while the invalid ones were (8) with a response with a response rate of (91%). 4.5 the validity and reliability of the study measurement tool: when a tool is reliable, it can be used repeatedly on the same sample at various times to get the same results. it also relates to the dimensions of the study and the reliability of the findings. it is high because the stability coefficient (alpha cronbach) was used, which studies have shown is acceptable with values greater than 70% in order to be accepted statistically in administrative and behavioral research (nunnaly & bernstein, 1994). however, the credibility standard demonstrates that the paragraphs actually measure the primary purpose that was developed for it, and it is acceptable with values greater than 70%. it became evident following the implementation of the test that each axis produced acceptable findings both individually and collectively, as demonstrated in table (3). american journal of business management, economics and banking volume 15 august, 2023 p a g e | 18 www.americanjournal.org table (3) the coefficient of validity and reliability of the research scale dimensions the number of .paragraphs the. coefficient of stability the coefficient of honesty vanity 5 77% 88% dominance (dom) 5 85% 92% anger 5 91% 95% arrogant leadership (arl) 15 83% 91% machiavellianism (mach) 8 74% 86% narcissism 8 78% 89% psychopathy (pyp) 8 86% 93% zombies in the workplace (zow) 24 84% 92% the source was prepared by the researcher based on the outputs of spss.27 5. descriptive statistics / description, diagnosis and analysis of the data of the study variables in light of the responses of (182) observations, the researcher attempts to determine the actuality, level, and importance of the study variables (arrogant leadership (arl), zombies in the workplace (zow)) among the staff of najaf teaching hospital. the percentage, its standard deviation, and the relative weight (importance), whether at the sub-level or the level of the dimensions or the primary variables investigated, are provided for each questionnaire paragraph. 5.1 descriptive analysis of the arrogant leadership variable (arl): table (4) descriptive analysis of the items of arrogant leadership dimensions (arl) n mean std. deviation the ratio's relevance arr skewness kurtosis van1 182 1.945 1.028 38.9% 2 -.968 .457 van2 182 1.126 0.631 22.5% 5 -.638 1.649 van3 182 1.319 0.749 26.4% 4 -1.396 1.450 van4 182 1.951 0.887 39.0% 1 -.670 .083 van5 182 1.429 0.650 28.6% 3 -.828 .185 vanity paragraphs (van) dom1 182 1.313 0.678 26.3% 2 -.587 -.255 dom2 182 1.170 0.853 23.4% 5 -.929 .619 dom3 182 1.275 0.861 25.5% 3 -1.298 1.779 dom4 182 1.352 0.592 27.0% 1 -.454 .285 dom5 182 1.242 0.703 24.8% 4 -.860 1.721 dominance paragraphs (dom) ang1 182 1.37 1.094 27.5% 4 -.300 -.729 ang2 182 1.99 1.054 39.8% 1 .033 -.673 ang3 182 1.09 1.111 21.9% 5 .082 -.885 ang4 182 1.98 1.074 39.7% 2 .357 -.591 ang5 182 1.97 1.071 39.3% 3 .366 -.601 anger paragraphs (ang) american journal of business management, economics and banking volume 15 august, 2023 p a g e | 19 www.americanjournal.org the source was prepared by the researcher based on the outputs of spss.27 according to the statistical markers reflected in the arithmetic mean, standard deviation, and percentage, table (5) displays the findings for the variable "arrogant leadership (arl)". standard deviation (0.410), which displays the data' variation from their arithmetic mean with a percentage of 37.0% , is less than the hypothetical mean. in najaf teaching hospital, (ang) came in first because it received the highest values (1.68), while (dom) placed last because it received the lowest values (1.270). the values of the coefficients of flattening or torsion ranged from (1.96:-1.96). here is a summary of the most significant findings regarding the sample's arrogant leadership data, which satisfies the requirement of the normal distribution of the data (kline, 2011:62) : table (5) descriptive analysis of arrogant leadership dimensions (arl) dimensions mean s.d the ratio's relevance arr skewness kurtosis vanity 1.554 0.452 24.1% 2 -.283 .151 dominance (dom) 1.2703 0.480 25.4% 1 -.747 .755 anger 1.68 0.922 21.6% 3 -.047 -.603 arrogant driving (arl) 1.501 0.410 37.0% -.054 -.094 the source was prepared by the researcher based on the outputs of spss.27 5.2 descriptive analysis of the variable zombie in the workplace (zow): table (6) descriptive analysis of the zombie variable dimensions in the workplace (zow): n mean std. deviation the ratio's relevance arr skewness kurtosis mach1 182 2.126 0.794 42.5% 8 -1.168 2.683 mach2 182 2.220 0.805 44.4% 5 -1.064 1.673 mach3 182 2.302 0.722 46.0% 2 -.884 .684 mach4 182 2.230 0.772 44.5% 4 -.777 .193 mach5 182 2.190 0.712 44.3% 6 -.636 .185 mach6 182 2.203 0.719 44.1% 7 -.866 1.667 mach7 182 2.231 0.623 44.6% 3 -.206 -.581 mach8 182 2.401 0.655 48.0% 1 -.879 .737 machiavellian paragraphs (mach) nar1 182 2.231 0.714 44.6% 6 -.738 .560 nar2 182 2.297 0.656 45.9% 2 -.754 1.033 nar3 182 2.258 0.685 45.2% 4 -.903 2.141 nar4 182 2.236 0.739 44.7% 5 -1.072 2.092 nar5 182 2.291 0.703 45.8% 3 -1.344 4.219 nar6 182 2.071 0.751 41.4% 8 -1.147 3.284 nar7 182 2.308 0.803 46.2% 1 -1.327 2.405 nar8 182 2.209 0.758 44.2% 7 -.985 1.590 narcissistic paragraphs (nar) pyp1 182 2.126 0.576 42.5% 3 -.004 -.083 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 20 www.americanjournal.org pyp2 182 2.264 0.687 45.3% 2 -.809 1.033 pyp3 182 2.044 0.853 40.9% 8 -1.003 1.549 pyp4 182 2.115 0.816 42.3% 4 -.894 .933 pyp5 182 2.082 0.885 41.6% 5 -1.130 1.562 pyp6 182 2.08 0.943 41.5% 6 -1.514 2.919 pyp7 182 2.0769 1.064 41.5% 7 .207 -.676 pyp8 182 2.6978 1.068 54.0% 1 .547 -.308 psychopathic paragraphs (pyp) the source was prepared by the researcher based on the outputs of spss.27 table (7) shows the results related to the variable (zombie in the workplace (zow) according to the statistical indicators represented in: (the arithmetic mean, the standard deviation, and the percentage), as it is clear that the mentioned variable has achieved a low value, because the arithmetic mean has reached ( (2.222 less than the hypothetical mean, with a standard deviation of (0.361), which shows the deviation of the values from their arithmetic mean, with a percentage of 41.9%). mach) ranked first because it got the highest values (2.242), while psychopathy (pyp) came last because it got the lowest values (2.185). the natural data for zombies in the workplace (kline, 2011:62), and this shows that self-love, self-interest and lack of empathy exist within the work environment, and here comes a presentation of the most important results related to the sample’s responses regarding each dimension of the variable (zombie in the workplace (zow) ): table (7) descriptive analysis of zombie dimensions in the workplace (zow) dimensions mean s.d the ratio's relevance arr skewness kurtosis machiavellianism (mach) 2.242 0.432 44.9% 2 -.543 1.076 narcissism 2.238 0.459 44.8% 3 -.988 2.557 psychopathy (pyp) 2.185 0.435 56.2% 1 -.199 .808 zombies in the workplace (zow) 2.222 0.361 41.9% -.084 .235 the source was prepared by the researcher based on the outputs of spss.27 5.3 testing the hypotheses of the correlations of the research variables: this part of the research specializes in a statistical presentation through which the correlation relationships are tested and analyzed between the two research variables (arrogant leadership (arl) the independent variable, with its four dimensions: vanity (van), dominance (dom), and anger (ang)) and the dependent variable zombies in the workplace (zow). it is as follows: table (8) matrix of correlation relationships for research variables van dom ang arl zo w pearson correlation .778** .781** .760** .803** sig. (2-tailed) .000 .000 .000 .000 n 182 182 182 182 source: spss output.v.27. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 21 www.americanjournal.org the correlations between the two research variables (arrogant leadership (arl) the independent variable, with its four dimensions: vanity (van), dominance (dom), and anger (ang)) and the dependent variable zombie in the workplace (zow) showed positive and high morale relationships. . 6.testing impact hypotheses in this paragraph, the results of testing impact hypotheses will be discussed, which will be tested successively: 6.1 the first main hypothesis (h1): testing the effect of the arrogant leadership axis (arl) on the zombie axis in the workplace (zow), the researcher designed a structural equation model for the purpose of testing the following hypotheses: the presence of the influence of arrogant leadership in the zombie axis in the workplace. as the following figure shows the structural model designed and proposed by the researcher: figure (3) the structural equation model between arrogant leadership and zombies in the workplace the researcher's findings from the statistical analysis connected to the standards for approving or rejecting the impact model are shown in the following table: table (9) the effect between arrogant leadership and zombies in the workplace path standard rating standard error critical value r2 sig. arrogant leadershi p ---> zombies in the workplace 0.809 0.044 13.154 0.651 0.001 the source was prepared by the researcher based on the outputs of the (amos.v.24) program. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 22 www.americanjournal.org table (9) indicates that the more the najaf teaching hospital administration realizes to reduce zombie behavior in the workplace, the more it leads to reducing arrogant driving behavior, in other words, reducing arrogant driving behavior by one unit leads to an improvement in reducing zombie behavior in the workplace by the weight of one standard value of (0.809) with a critical value of (13.154) and a standard error of (0.044), which means that the increased interest of the najaf teaching hospital administration in improving leadership behavior leads to reducing the impact of zombie behavior in the workplace by focusing on reducing the level of vanity and working to respect workers and listen to their ideas and suggestions. the results of table (9) also indicate that arrogant leadership contributes to explaining an amount of (0.651) of the variance in zombies in the workplace, while the remaining value is due to factors not included in the study. therefore, hypothesis (h1) will be accepted. 6.2 the second main hypothesis (h2): testing the effect of the arrogant leadership axis (arl) on the zombie axis in the workplace (zow). the researcher designed a structural equation model for the purpose of testing the following hypotheses: the existence of an effect to banish arrogant leadership in the zombie axis in the workplace. the researcher's designed and suggested structural model is depicted in the following figure: figure (4) the structural equation model between the dimensions of arrogant leadership and zombies in the workplace the researcher's findings from the statistical analysis connected to the standards for approving or rejecting the impact model are shown in the following table: american journal of business management, economics and banking volume 15 august, 2023 p a g e | 23 www.americanjournal.org table (10) the effect between the dimensions of arrogant leadership and zombies in the workplace path standar d rating standar d error critical value r2 sig. vanity ---> zombies in the workplace 0.403 0.056 12.011 0.663 0.000 dominance ---> 0.699 0.098 10.789 0.000 anger ---> 0.738 0.087 7.548 0.000 the source was prepared by the researcher based on the outputs of the (amos.v.24) program. table (10) indicates that the more the najaf teaching hospital administration realizes the importance of reducing arrogant leadership behaviors, the more it leads to reducing zombie behaviors in the workplace, in other words, reducing the vanity dimension (van) by one unit leads to an improvement in reducing zombie behaviors in the workplace has one standard weight of (0.403), with a critical value of (12.011) and a standard error of (0.056), while reducing the dominance dimension (dom) by one unit leads to an improvement in reducing zombie behaviors in the workplace with one standard weight of (0.056). (0.699), with a critical value of (10.789) and a standard error of (0.098), while the last dimension of anger (ang) came with the value of the largest effect and the amount of (0.738), meaning that reducing it by one unit leads to an improvement in reducing zombie behavior in the workplace. here it is clear that all the dimensions of the effect came at a significant level (0.000). hence, we infer that the growing level of arrogant leadership dimensions within the hospital will work to promote zombies in the workplace, and vice versa, the increased interest of the najaf teaching hospital administration in leadership behaviors will reduce the impact of zombie behaviors in the workplace. table (10) shows that workplace zombies are a result of arrogant leadership in a way that accounts for (0.663) of the variance, with other factors outside the purview of the study accounting for the remaining value. so, the (h2) hypothesis will be adopted. 7. conclusions: through the results of the statistical analysis, our study reached a set of conclusions, which can be mentioned as follows: 1the scarcity of studies that dealt with the study of these two variables in a combined manner in the regulatory literature. 2the descriptive analysis of the study demonstrated that there was only a limited amount of haughty leadership present within the najaf teaching hospital administration, indicating that not all administrative leaders exhibit the traits of dominance, transcendence, love of ego, and lack of empathy in their discourse and behavior 3the results of the descriptive analysis of the study showed that the zombies, with its three dimensions, occupied an average level within the organizational work, through its ratio close to the arithmetic mean, and this means that the hospital grows within it the behavior of a sense of exaggeration, selfishness, deception, and emotional manipulation in a moderate manner. 4the statistical results also confirmed that there is an effect and correlation between the variables of the study and its dimensions, if the results indicated that there is a good correlation between the variables studied, and it also became clear that the growing level of arrogance among the leaderships american journal of business management, economics and banking volume 15 august, 2023 p a g e | 24 www.americanjournal.org inside the hospital is sufficient to produce and strengthen zombies among the workers. but reducing its level will reduce the effects and reflections of zombies. 5the findings also supported the notion that the arrogant leadership traits of conceit, domination, and rage significantly influence how the hospital's zombie situation—represented by mental disorders, ego love, possessiveness, and arrogance—develops. 8.recommendations: according to the aforementioned conclusions, we can recommend a set of recommendations that represent organizational treatments, which we present as follows: 1 conducting many researches and studies that promote the creation of a comprehensive and broad understanding of the impact of these two variables on the nature of the work of organizations. 2 the najaf teaching hospital set up awareness-raising workshops and seminars by specialists in administrative thought to renew and address the leadership's thought in dealing with institutional work. 3 serious and effective work to contain the hospital workers, pay attention to their ideas and proposals, and not belittle them. 4 activating the principle of participation by everyone in making and making decisions, and not monopolizing it over an individual or a private group, or ignoring constructive participations, as it enhances a sense of respect and not being ignored. 5 dealing with a calm spirit and not intolerance and anger towards the positions of others, for the sake of work. 6 sublimation from the state of vanity, external attraction, and lack of control over emotions, because it will deepen the state of zombies among the various workers. 7work to give priority to the interest of work and the institution primarily over self-interest, because it will enable the reduction of the creation of the machiavellian personality in the organizational work and thus the predominance of the state of loyalty . references 1. al mansoori, bader .(2017). 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(2013). zombies, cyborgs, and other labor organizers: an introduction to representations of adult learning theories and hrd in popular culture. new horizons in adult education and human resource development, 25(1), 5-17. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 39 | p a g e the role of dividend policy in increasing the level of bank capitalization rufat bakhtiyorovich kurbanov associate professor of the department of bank accounting and auditing, tashkent institute of finance, phd. e-mail: rufatjon86@gmail.com, orcid: http://orcid.org/0000-0002-6841-9292 a b s t r a c t k e y w o r d s the article examines foreign and domestic literature to show the role of dividend policy of commercial banks in increasing the level of capitalization of banks and examines the advantages of a regular dividend policy. in particular, when studying the scientific views of researchers, a number of shortcomings and issues in the dividend policy of commercial banks were identified. also, commercial banks are examined as active participants in the stock market, as well as financial data on dividends payout was investigated. based on the research conducted, conclusions and practical recommendations were established. commercial bank, stock, dividend, dividend policy, capital, investor. introduction in the development of the banking sector, which is the locomotive of the economy, commercial banks constantly feel the need for resources to ensure further development of their activities and to expand the scope of their activities. in the conditions of healthy competition, the opportunities to attract any resources for free and use them without compensation are limited. this situation, in turn, shows that banks should pay special attention to the dividend policy. it is known that commercial banks are required to constantly increase their authorized capital in order to ensure their financial stability. in order to increase the authorized capital, it is necessary to place the bank's shares on the stock market, and for this, first of all, it is necessary to attract foreign and local investors to the shares. the amount of dividend paid per share is one of the important issues that interest investors. because the attractiveness of shares is determined by the rational dividend policy conducted by banks. unfortunately, this issue is not on the main agenda of our banks. therefore, in order to develop the banking system of uzbekistan, increasing the role of the dividend policy in joint-stock commercial banks based on best practice is an urgent and practical issue, and in this regard, it is necessary to pay serious attention to the dividend policy. based on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025, with the support of international financial institutions, step-by-step privatization of state shares in jscmb "ipoteka-bank", "uzpromstroybank" jscb, "asaka" jscb, jsc "aloqabank", jscb «qishloq qurilish bank» and "turonbank" jscb, in which the institutional change (transformation of their activity) in the first stage, and the sale of a package of state shares in the second stage [1], shows american journal of business management, economics and banking volume 19 december, 2023 p a g e | 40 www.americanjournal.org that the fulfillment of the task set in the period is inextricably linked with the dividend policy of commercial banks. today, commercial banks are carrying out the necessary work on the implementation of the above issues. review of literature on the subject although there are many views on the issue of dividend policy, even today the researches carried out in this field of management of the dividend policy of banks have not lost their relevance. especially this issue has been in the constant focus of researchers and economists. commercial banks, as issuers, gain the opportunity to place additional shares by guaranteeing constant dividend payments to shareholders, thereby increasing the banks' capitalization. that is why commercial banks should pay special attention to dividend policy [2]. in this regard, sh.abdullaeva and a.omonov say that "the sale of preferred shares, as well as ordinary shares, is the most expensive way of forming bank capital. because the owners of preferred shares will have the right to participate directly in the distribution of bank profits compared to the owners of ordinary shares, as a result of which the amount of bank dividends to be paid may decrease" [3]. r. kurbanov, one of the local scientists, paid special attention to the modern ways of increasing the level of capitalization of banks in his researches [4,5,6,7]. foreign scientists ross n. dickens and k. michael casey studied the assessment of the direct impact of regulations and taxes on the dividend policy of commercial banks, and it was noted that the dividend policy of commercial banks has different characteristics compared to the dividend policy of other sectors and industries [8]. also, foreign researchers, like l. lepetit, c. meslier, f. strobel, l. wardhana conducted studies on bank dividends, agency costs, and the rights of shareholders and creditors, and found that the level of dividend payments in banks is more strongly influenced by agency costs than by creditors [9]. another group of scholars, enrico onali, philip molyneux, giuseppe torluccio, and ramilya galiakhmetova, studied the relationship between ceo powers, government control, and bank dividends [10]. research methodology in the preparation of the article, practical data on increasing the level of capitalization of commercial banks were analyzed, and all the used data were researched by the author based on the current legal documents and statistical indicators of the central bank. grouping, comparison, systematic approach, and structural analysis methods were used in the article. analysis and results increasing the level of capitalization and strengthening the financial stability of commercial banks is a necessary condition for ensuring the stability of the country's banking system[11,12] commercial banks, as issuers, get the opportunity to place additional shares through the payment of constant dividends to shareholders, thereby increasing the banks' capitalization. that is why commercial banks should pay special attention to dividend policy. dividend policy is one of the powerful tools to achieve strategic goals of banks. consequently, even when the income of the banks is sufficient, dividend payments play an important role in increasing the investment attractiveness of banks, the level of capitalization, the liquidity of its shares and, as a result, in ensuring the financial stability of banks. taking into account the above, the effective dividend policy of commercial banks in increasing the level of bank capitalization gives the following advantages (pic 1). american journal of business management, economics and banking volume 19 december, 2023 p a g e | 41 www.americanjournal.org picture1.advantages that commercial banks can achieve through an effective dividend policy as can be seen from the data in the above picture, we believe that a number of aspects should be given special attention in order to formulate a reasonable and effective dividend policy for commercial banks. in the dividend policy of commercial banks, it is necessary to take into account the level of profitability of shares paid to investors, along with regular attention to paying dividends. since shares are considered a high-risk security, the dividend rate of commercial banks should be higher than the interest rate of savings and deposits. table 1. analysis of dividend payments of "uzpromstroybank" jscb [14] indicators 2018 2019 2020 2021 for ordinary shares: 3,30% 7,632% 0 0 amount of dividends calculated for payment (million soums) 71 350,16 353 150,08 0 0 for special shares: 23% 23% 23% 23% amount of dividends calculated for payment (million soums) 1616,9 1616,9 1616,9 1616,9 annual inflation rate (in %) 14,3 15,2 11,1 9,98 as can be seen from the given table, the dividend payments on common and preferred shares by "uzsanoatqurilishbank" adb and their corresponding inflation rate are indicated. the main purpose of this is to provide an accurate assessment of the income received by the customers by comparing the percentage of dividend paid by the bank with the annual inflation rate. as we can see, although the bank's dividend payments on common and preferred shares were higher than the inflation rate until 2016, since 2018, only the dividend payments on common shares have decreased from the inflation rate. in 2020 2021, we can see that the bank did not pay any common stock dividend at all. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 42 www.americanjournal.org table 2. analysis of dividends calculated and paid by jscb «qishloq qurilish bank» [15] years counted dividends (mln.soums) paid dividends (mln.soums) calculation of dividends on shares (in %) annual inflation rate (in %) ordinary shares ordinary shares 2018 15 664 15 547 2,52% 25,00% 14,3 2019 27 278 27 147 0% 25,00% 15,2 2020 268 110 0% 25,00% 11,1 2021 268 235 0% 25,00% 9,98 table 2 shows that in 2018-2021, atb "kishloqkurilishbank" had differences in the amount of calculated and paid dividends in each financial year. this indicates that deficiencies were made in organizing the process of paying dividends to shareholders, or shareholders did not apply for dividends. this situation can negatively affect the investment attractiveness of the bank. if we analyze the dividends paid per share by "qishloqqurilishbank" adb, in 2018, the bank paid continuous dividends. in particular, during this period, a dividend of 29.81 soums (25%) was paid to preferred shares. in 2018, the dividend for one share of ordinary shares was 3.00 soums (2.52%), it should be noted that no dividend was paid for ordinary shares in 2019-2020. as a result of our research and studies, in the practice of commercial banks, the dividend policy is established by distributing the bank's net profit. however, investors are not satisfied with the fact that almost all commercial banks pay dividends below the annual rate of inflation. as a result, the growth rate of capitalization of commercial banks does not correspond to today's demand. therefore, for the development of the banking system of uzbekistan, increasing the role of the dividend policy in commercial banks based on advanced foreign experience is an urgent and practical issue, and from this point of view, banks are required to pay serious attention to this issue. in our opinion, it is necessary to take into account the level of annual payments and regular increases in dividends. this should be one of the listing requirements of the commercial banks of our country in organizing the ipo practice in the international stock market. most commercial banks cannot meet the ipo requirements of developed international stock exchanges. therefore, national stock exchanges should develop and implement strategic financial plans[13]. the dividend policy of banks plays an important role in the rapid development of the stock market due to the expansion and new direction of active participants in the stock market of developed countries. it is desirable for commercial banks as issuers to issue additional shares instead of paying regular dividend payments to shareholders. because this situation serves to increase the level of capitalization of banks and increase their prestige in the market. but today, many commercial banks are diverting dividends for consumption instead of capitalizing dividends calculated for stocks. this situation can slow down the economic development of banks and reduce their competitiveness and the interest of foreign investors. it should be noted that we cannot say that the level of liquidity of shares is high for the stock market of our country. also, the main factor in the formation of the stock price is the amount of the paid dividend. at the current stage of economic development, it is appropriate for banks to focus not on paying dividends, but on reissuing issues to solve the serious problem of capital adequacy in front of them. because the increase of authorized capital as the main source of private capital leads to constant interest of local and foreign investors in bank shares. otherwise, the financial condition of banks will deteriorate and the liquidity of shares will decrease, which will have a negative impact on the development of the stock market and the banking system. in today's practice, the low demand for shares of banks in the primary market and the inability to sell shares at prices higher than their nominal value is one of the negative situations facing banks. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 43 www.americanjournal.org in countries where the stock market is developing, the share price of banks in the secondary market will depend on the effective dividend policy of these banks. in this case, the secondary market rate of banks paying high dividends is too high or it is not possible to buy such shares. on the other hand, the share price of banks that pay a minimum dividend on the secondary market does not rise above the nominal value for a certain period. conclusion and suggestions the following conclusions and practical proposals were formed based on our studies in order to increase the role of dividend policy in the development of the banking sector: first, the constant payment of dividends by commercial banks improves their position in the financial market by attracting capital through the issuance of additional shares, and attracts investors through regular dividend payments, playing a key role in creating investment attractiveness for ipos, and as a means of protection in mergers and acquisitions by other banks. gives advantages. secondly, one of the important issues facing the banking system is to effectively organize the processes of privatization and transformation of the state-owned commercial banks, and to ensure that the dividend payments are constant and not lower than the annual inflation rate in order to sell their shares to foreign investors. thirdly, the ability of commercial banks to pay constant dividends is evaluated by the amount of net profit and financial stability they received in the reporting year, and the main importance of the dividend policy is to increase the number of shareholders, as a result, effective management of bank capital is achieved. fourthly, taking into account that in the international experience, the presence of the state share in the charter capital of banks is very low, in order to effectively carry out the processes of privatization and transformation, commercial banks with a state share should seriously review the dividend policy and, of course, increase the dividend payments, as a result of which foreign investors are interested in bank shares. can be increased. references: 1. ўзбекистон республикаси президентининг “2020 – 2025 йилларга мўлжалланган ўзбекистон республикасининг банк тизимини ислоҳ қилиш стратегияси тўғрисида”ги пф-5992-сонли фармони. 2020 йил 12 февраль. 2. s.o’rinov. o‘zbekiston bank sektorini rivojlantirishda dividend siyosatining rolini oshirish masalalari. // oriental renaissance: innovative, educational, natural and social sciences, volume 1, issue 3, april 2021. – p 11 3. ш.з.абдуллаева, а.а.омонов. тижорат банклари капитали ва уни бошқариш. –т.:, «iqtisod-moliya», 2006. 120 б. 4. курбанов, р. (2022). банклар капиталлашув даражасини оширишнинг долзарб масалалари. экономика и образование, 23(4), 96-101. 5. kurbanov, r. b., & asirarov, r. z. (2022). the role of the bank's initial public offering in increasing the capitalization of commercial banks. asian journal of research in banking and finance, 12(4), 30-36. 6. bakhtiyarovich, k. r. (2020). analysis of financial performance of private banks in uzbekistan. international journal of psychosocial rehabilitation, 24(05). 7. kurbanov, r. b. (2021). improving the organization of the resource base of private banks of the republic of uzbekistan. saarj journal on banking & insurance research, 10(5), 41-45. 8. k.michael casey, ross n. dickens. the effects of tax and regulatory changes on commercial bank dividend policy. // the quarterly review of economics and finance. volume 40, issue 2, summer 2000, pages 279-293. 9. l.lepetit, c.meslier, f.strobel, l.wardhana. bank dividends, agency costs and shareholder https://www.sciencedirect.com/science/journal/10629769 https://www.sciencedirect.com/science/journal/10629769 https://www.sciencedirect.com/science/journal/10629769 https://www.sciencedirect.com/science/journal/10629769/40/2 https://www.sciencedirect.com/science/journal/10629769/40/2 https://www.sciencedirect.com/science/journal/10629769/40/2 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 44 www.americanjournal.org and creditor rights. // international review of financial analysis. volume 56, march 2018, pages 93-111. 10. ibrahimovich, j. i. (2021). improvement of central bank's monetary policy. saarj journal on banking & insurance research, 10(5), 26-33. 11. jurayev phd, i. (2021). urgent issues to increase the sustainability of the banking system of the republic of uzbekistan. international finance and accounting, 2021(6), 12. 12. juraev, i. i., & mamatkulova, d. j. (2017). the concept of inflation and its’essential role in the economy. in international scientific and practical conference world science (vol. 2, no. 5, pp. 42-43). rost. 13. enrico onali, ramilya galiakhmetova, philip molyneux giuseppe torluccio. ceo power, government monitoring, and bank dividends. // journal of financial intermediation. volume 27, july 2016, pages 89-117 14. kurbanov, r. (2020). the practice of strengthening of resource base in private banks. international journal of economics, commerce and management, 8(3), 23485-0386. 15. kurbanov, r. b. (2017). the role of deposits in strengthening the resource base of commercial banks. экономика и бизнес: теория и практика, (4-2), 51-54. 16. kurbonov phd, r. (2021). analysis of efficiency indicators of private banks activity. international finance and accounting, 2021(1), 11. 17. matyakubovich, r. a. (2019). issues of expanding the deposit base of commercial banks. religación. revista de ciencias sociales y humanidades, 4(15), 274-279. 18. matyaqubovich, r. a. (2023). development models of bank deposit operations. international journal of asian economic light, 11(9), 1-5. 19. matyaqubovich, r. a. (2023). issues of implementation of the experience of foreign digital banks in attracting deposits from individuals in uzbekistan. epra international journal of economics, business and management studies (ebms), 10(12), 18-21. 20. https://sqb.uz/uz/for-investors/shares-and-dividends-uz/ https://qishloqqurilishbank.uz/documents/t/dividendlar-togrisida-malumotlar https://www.sciencedirect.com/science/journal/10575219 https://www.sciencedirect.com/science/journal/10575219 https://www.sciencedirect.com/science/journal/10575219 https://www.sciencedirect.com/science/journal/10575219/56/supp/c https://www.sciencedirect.com/science/journal/10575219/56/supp/c https://www.sciencedirect.com/science/journal/10575219/56/supp/c https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/article/pii/s1042957315000388#! https://www.sciencedirect.com/science/journal/10429573 https://www.sciencedirect.com/science/journal/10429573 https://www.sciencedirect.com/science/journal/10429573 https://www.sciencedirect.com/science/journal/10429573/27/supp/c https://www.sciencedirect.com/science/journal/10429573/27/supp/c https://www.sciencedirect.com/science/journal/10429573/27/supp/c https://www.sciencedirect.com/science/journal/10429573/27/supp/c https://sqb.uz/uz/for-investors/shares-and-dividends-uz/ https://qishloqqurilishbank.uz/documents/t/dividendlar-togrisida-malumotlar american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 163 www.americanjournal.org the trend of annulment of marriage on the territory of uzbekistan abdumalikova guli-ra`no doctoral tashkent state university of economics gulik_yodgarova@mail.ru a b s t r a c t k e y w o r d s this article shows the statistics of rulings in uzbekistan and their impact on the socio-economic life of minors. a collection of information obtained throughout uzbekistan, showing the procedure and system of annulment of marriage. 20-year dynamics of children in orphanages, that is, indicators of children who have lost their parents or are psychologically and physiologically unhealthy. introduction annulment of marriage, divorce is the dissolution of marriage during the lifetime of the spouses. in uzbekistan, the oc has determined the procedure for its implementation, depending on the basis of the divorce. according to the legislation, marriage is separated in court and administratively, in the civil status registration body (fhdyo). divorce is carried out on the application of one or both of the spouses. if the couple lives separately, the lawsuit is filed in the court of the defendant husband or wife's place of residence, if the place of residence is unknown, the application is submitted to the court of the defendant's last place of residence. divorce proceedings are heard in an open court session. divorce proceedings may be heard in closed session according to the spouse's application, in necessary cases, based on the court's decision. the court has the right to adjourn the hearing of the case and grant the couple a 6-month period for reconciliation. in order to reconcile the couple, the court may, in necessary cases, send copies of the decision to the women's committees in the place where they live, to the selfgoverning body, to the council of neighborhood elders, to the reconciliation commissions under them for discussion and reconciliation. taking into account the specific circumstances, the court has the right to change the time limit for their reconciliation and to consider the case until this time limit has passed, based on the application of the spouses or one of them. courts should find out the real reasons for divorce and take measures aimed at preserving and strengthening the family, protecting the interests of motherhood and children. 1 annulment of marriage in the following cases. shall be considered in the court procedure: if one of the spouses does not agree; if there are common minor children in the middle, and there is a dispute regarding who should leave them and how to collect alimony for their support, when the question of 1 https://lex.uz/docs/-104720 https://lex.uz/docs/-104720 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 164 www.americanjournal.org how to collect alimony and its amount for an incapacitated, needy husband or wife arises between the spouses; if there is a dispute regarding the division of common property. methodology in this article, we have considered all regions of uzbekistan and used statistical data from the statistics committee of uzbekistan. using the analysis and synthesis method, we developed diagrams and tables using their data and also reviewed articles by international scientists on the mendeleev website: 1. “the effects of parental divorce on children” çaksen, hüseyin psychiatrike = psychiatriki 2022, 33-(1) 10.22365/jpsych.2021.040 2. “parental divorce process and post-divorce parental behaviors and strategies: examining emerging adult children’s attachment-related anxiety and avoidance” smith-etxeberria, klara; corres-medrano, irune; fernandez-villanueva, itziar; international journal of environmental research and public health 2022, 19-(16) 10.3390/ijerph191610383 children have the right to choose a guardian after divorce. if a couple without minor children mutually agree to a marriage certificate, they will be separated from the marriage at the civil status registration body (fhdyo).2 also, if one of the spouses: has been found missing by the court; if he/she has been declared incompetent due to mental disorder (mental illness or mental retardation); if he has been deprived of liberty for a period of not less than 3 years for the crime he committed, regardless of whether there are minor children, according to the application of one of the spouses, the marriage will be annulled in the registry office. analyses and results according to the report of the statistics agency, the number of divorces in uzbekistan in january-june amounted to 25,400, which is 828 more than in the corresponding period of 2022. 2 https://my.gov.uz/oz/site/faq/39 0 10000 20000 30000 40000 50000 60000 number of divorces total republic of uzbekistan https://my.gov.uz/oz/site/faq/39 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 165 www.americanjournal.org in the first 6 months of this year, fergana region recorded the highest number of divorces. 3,107 families were divorced in the region in half a year. tashkent city (2,989) and andijan region (2,854) are in the next places. 3 navoi region has the lowest number of divorces, where 755 divorces were recorded in january-june. the next places were occupied by syrdaryo (796) and jizzakh (873) regions. the highest rate of divorce growth was observed in khorezm and fergana regions, and the lowest rate was observed in bukhara and syrdarya regions. 4 3агентство статистики при президенте республики узбекистан демографическая ситуация в республике узбекистан 2023 4 siat.stat.uz american journal of business management, economics and banking volume 15 august, 2023 p a g e | 166 www.americanjournal.org for half a year, the number of divorces with 1 child was 13,186, divorces with 2 or more children were 5,505. the average age of divorced persons was 37.7 years for men and 33.2 years for women. 5 in the first half of this year, the total number of divorces in uzbekistan was 25,400. in particular, 15,300 families divorced in urban areas and 10,100 in rural areas. in the first 6 months of 2022, 24,572 cases of divorce were recorded, and the largest number of divorces occurred in tashkent city (2,950) and samarkand region (2,569). a total of 48,734 cases of divorce occurred in the country in 2022. 6 as can be seen from the graphs below, the number of rulings has increased over the past 10 years and 20 years. the increase in the monthly salary of the population does not have enough impact on their regular social life. the breakdown of families causes socio-economic deficiencies of children. 5 siat.stat.uz 6 https://siat.stat.uz/reports-filed/233/line-data https://siat.stat.uz/reports-filed/233/line-data american journal of business management, economics and banking volume 15 august, 2023 p a g e | 167 www.americanjournal.org through this diagram, we can see the general classification of orphanages from 2000 to 2022, the number of abandoned children, their adopters, and the physiological and psychological vulnerability of children. in 20 years, we can see a decrease in the number of children. this chart shows the number of orphans who lost their parents and were adopted or taken back by their own parents. numbe r of orphan ages places children childre n who came during the year from parents orphan s and those without parenta l care childre n who have gone through the year*) those taken by their parents adopte d children numbe r of children left behind: in physical develop ment in spiritual develop ment 2000 13 1010 766 772 408 364 769 462 196 587 217 370 2001 13 1010 727 726 404 322 765 490 168 550 180 370 2002 13 990 794 661 416 245 594 344 164 598 174 424 2003 13 990 743 534 313 221 585 327 157 540 168 372 2004 13 990 701 507 224 283 549 280 182 512 172 340 2005 13 990 706 521 218 303 516 292 166 508 152 356 2006 13 990 732 509 262 247 483 247 168 538 178 360 2007 13 970 752 530 258 272 510 272 149 553 191 362 2008 13 970 689 499 194 305 562 315 190 543 196 347 2009 13 970 713 524 238 286 500 262 172 523 199 324 2010 13 970 751 593 228 365 555 256 215 577 210 367 2011 13 970 742 629 272 357 638 311 257 540 189 351 2012 13 970 718 528 238 290 552 224 250 511 153 358 2013 13 970 699 575 191 384 594 229 263 435 158 277 2014 13 930 662 523 206 317 560 204 253 449 200 249 2015 13 905 639 525 179 346 548 224 241 353 134 219 2016 13 885 635 516 216 300 520 165 269 355 145 210 2017 13 885 631 518 210 308 511 182 243 345 138 207 2018 13 885 628 512 198 314 508 169 261 350 149 201 2019 13 780 670 509 258 251 577 257 221 308 103 205 2020 13 840 611 508 345 163 429 213 176 302 92 210 2021 13 870 666 508 345 163 423 225 198 302 92 210 2022 10 690 364 324 149 128 398 157 157 239 75 164 0 200 400 600 800 1000 1200 orphanages american journal of business management, economics and banking volume 15 august, 2023 p a g e | 168 www.americanjournal.org conclusion divorce can lead to many negative and, conversely, positive turns in people's lives. but a person can correct his life, but if he has children, this will have a different effect, especially since small children will grow up with psychological trauma for the rest of their lives. the choice of a profession in later social life can prevent them from starting a family, i.e. lead a normal life. as can be seen from the graphs below, the number of rulings has increased over the past 10 years and 20 years. the increase in the monthly salary of the population does not have enough impact on their regular social life. the breakdown of families causes socio-economic deficiencies of children. references 1. “the effects of parental divorce on children” çaksen, hüseyin psychiatrike = psychiatriki 2022, 33-(1) 10.22365/jpsych.2021.040 2. “parental divorce process and post-divorce parental behaviors and strategies: examining emerging adult children’s attachment-related anxiety and avoidance” smith-etxeberria, klara; corres-medrano, irune; fernandez-villanueva, itziar; international journal of environmental research and public health 2022, 19-(16) 10.3390/ijerph191610383 3. демография: учебник для вузов. – м.: логос, 2005. – 280 с. под редакцией н.а. волгина и л.л. рыбаковского. 4. медковв.м. основыдемографии:, серия «учебникииучебныепособия».ростов-на-дону : «феникс», 2003 г.448с. 5. борисовв.а. демография: учебникдлявузов.м.: «нотабене»медиа трейд компания, 2003 г. – 344 с. 6. зверевн.в. основы демографии: учебноепособие.м.: «высшаяшкола», 2004 г. – 374 с. 7. бутовв.и. демография: учебное пособие/подред. игнатовав.г..м.: «март», ростов-надону: издательский центр «март», 2003 г. – 592 с. 8. q.x.abdurahmonov, demografiya. o’quv qo’llanma 5a340114–“mehnat iqtisodiyoti” magistratura mutaхassisligi talablariga mo’ljallangan .–t.:noshir,2011.296 b. 9. “demografik tahlil ” abdurahmanov x. x., hayitov a. b. toshkent 2021 innovatsion rivojlanish nashriyot uyi; 10. www.stat.uz 11. www.worldbank.com 12. www.siat.uz 13. www.lex.uz http://www.stat.uz/ http://www.worldbank.com/ http://www.siat.uz/ http://www.lex.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 11, | april, 2023 p a g e | 45 www.americanjournal.org improving the methodology of determining the rating and ranking of real estate organizations tashpulatov giyos tokhirovich associate professor of the "business and entrepreneurship skills " department of the higher school of business and entrepreneurship, (phd) a b s t r a c t k e y w o r d s in this article, the application of the methodology for determining the rating of real estate organizations in uzbekistan and the creation of a toroidal model of the interdependence of the activities of rating agencies are discussed and suggestions are made. the necessary legal framework and economic conditions for the functioning mechanism of this market are being gradually created. however, in uzbekistan, the impact of macroeconomic policy on rem and the role of this market in the national economy has not been analytically evaluated, and the problems of evaluating the rating of real estate organizations operating in it have not been sufficiently resolved. however, in the world, rem and real estate services are of great importance for the economy and are a driver of development for many related industries. real estate market (rem), the functioning mechanism, problems of evaluating, ownership system, rating scale standards, rating agencies introduction on the basis of large-scale and consistent reforms implemented by the state in uzbekistan, an effective ownership system based on different forms of ownership regulating the real estate market (rem) and a market of real estate services, which plays an important role in determining the effectiveness of rem in economic turnover, has been formed. the necessary legal framework and economic conditions for the functioning mechanism of this market are being gradually created. however, in uzbekistan, the impact of macroeconomic policy on rem and the role of this market in the national economy has not been analytically evaluated, and the problems of evaluating the rating of real estate organizations operating in it have not been sufficiently resolved. however, in the world, rem and real estate services are of great importance for the economy and are a driver of development for many related industries. during the relatively long-term development of rem, a large number of relatively accurate, tested and sharply different methodologies for assessing the rating of real estate organizations have been developed, among which the services of large international rating agencies are preferred by many. among them, the lack of a universal methodology universally recognized by all experts makes it difficult to determine the rating and ranking of real estate organizations, since several rating agencies provide different rating results for the same company. such a negative situation causes uncertainty and a certain level of distrust in the choice of real estate organizations by clients. american journal of business management, economics and banking volume 11 april, 2023 p a g e | 46 www.americanjournal.org for example, the rating scale standards of the world's three largest international rating agencies are presented in table 1, and the rating scales in them are divided into classes and groups. the scales presented in this table 1 are also used to evaluate the rating of other types of organizations in addition to banks. the results of determining the rating and ranking of real estate organizations are given in table 1 as a numerical analogue of the classes of the scales of international rating agencies in column 5 [1; 27; -n] can accept a transition scale consisting of a set of numbers in the interval. the fact that these agencies do not provide rating services to companies falling into the index corresponding to numbers 22-25 of the scale means that they belong to the default class groups. in this [1; 27; if number 1 in the interval -n] corresponds to the largest amount of financial size, number -n corresponds to a real estate organization with a negative financial size. table 1 comparison of rating scales of three international rating agencies gradation of rating scales digital analogue of scale classes s&p bank deposits fitch bank deposits moody’s bank deposits moody’s bfsr 1 2 3 4 5 ааа ааа ааа а 1 аа+ аа+ аа1 2 аа аа аа2 3 аааааа3 а4 а+ а+ а1 в+ 5 а а а2 в 6 ааа3 в7 ввв+ ввв+ ваа1 с+ 8 ввв ввв ваа2 с 9 ввввввваа3 с10 вв+ вв+ ва1 d+ 11 вв вв ва2 d 12 ввввва3 d13 в+ в+ в1 e+ 14 в в в2 15 ввв3 16 ссс+ ссс+ саа1 17 ссс ссс саа2 e 18 сссccccaa3 19 с c ca1 20 d d са2 21 са3 22 c1 23 c2 24 c3 25 26 27 -n american journal of business management, economics and banking volume 11 april, 2023 p a g e | 47 www.americanjournal.org usually (in world practice), the rating of real estate organizations is determined by rating agencies on the basis of three basic indexes covering relevant qualitative and quantitative indicators (parameters) business index, corporate index, financial index. based on the following approach, the principles and methodology of determining the improved rating and ranking, which fully take into account the characteristics and characteristics of the activities of real estate organizations, which are rem professional institutions, and the national scale of the rating results determined in accordance with them can be proposed based on the following approach. the proposed comprehensive approach is based on the following principles, and the set of methodologies that ensure their implementation is the methodology of rating and ranking results. the approach is shaped by the following principles and methods. 1. the principle of rating and ranking evaluation by dividing the criterion indicators covering the qualitative and quantitative parameters of the real estate organization into two large integrated groups of criterion (index) indicators. within this principle, the following two large integrated groups of indices can be used: 1) determining the rating of the real estate organization's activity (success, reliability, competitiveness, reputation) in the market of real estate services using a set of qualitative indicators according to the grade rating index (gri); 2) determining the rating of the real estate organization's financial condition and financial size according to the quantitative rating index (ri) that adequately represents the balance sheet of the real estate organization (reo) using a set of 4 main integral indicators. the results of changes in the development and formation of both integral indexes (gri and qri), which qualitatively and quantitatively express the state of the real estate organization, respectively, are equivalent categories. the gri and qri categories, which are equivalent to each other, can reflect the status of the real estate organization separately. the third regulatory factor (ro) determines the change of the gri and qri indices, which are considered equivalent to the state of the real estate organization. while ro, gri and qri: the productivity of human capital engaged in the activities of the real estate organization (that is, individuals such as owners, employees and managers of the organization), including the efficiency of using innovation and digital technologies; depends on the level of development of the market of real estate services operating depending on the macroeconomic policy of the state. from a scientific-philosophical point of view, since the gri and qri categories are causally related by means of ro based on the law of dialectics of the transformation of quantity into quality and quality into quantity, they have the property of turning into each other and forming a transformation of each other through ro. therefore, it is possible to propose the feasibility of the hypothesis that gri and qri are equivalent categories related to each other through ro. because the correctness of this hypothesis based on the rules of socio-economic systemology was proved mathematically by professor sh. shoha'zami. in order to express the essence of the hypothesis based on these rules and evidence, a toroidal model in the form of figure 1 is appropriate. in figure 1: to – external factors that simultaneously affect qri and gri categories; ccc – output indicators (indicators) of the gri category, which simultaneously affect the ro category; american journal of business management, economics and banking volume 11 april, 2023 p a g e | 48 www.americanjournal.org oi – output indicators of the qri category, which simultaneously affect the ro category; ro – general regulator for qri and gri categories; qfo and fi are internal factors that are formed by ro and affect the functions of gri and qri categories, respectively. taking ro, to into account, it performs the function of a balancing mechanism, which consists in the formation of internal factors (qfo, fi) based on oi. all factors are causally related. thus, on the basis of the above, it can be said that the implementation of the 1st principle relies on the mathematical proof that gri and qri categories are equivalent and on the rules of socio-economic systemology. this means that it is possible to rely on the gri or qri category when assessing the rating (not the ranking!) of real estate organizations, and it is necessary to use a financial measure to determine the ranking. in figure 1 considering that the financial status of a real estate organization can be accurately calculated by qri based on reo main (4 integral) indicators, the use of qri in evaluating and determining the ranking of any real estate organization is preferable because it is easy and simple to calculate as a quantitative index. because, in rating assessment based on gri, some quantitative indicators (scores) and criteria, which conditionally express qualitative indicators and parameters indirectly and the need to use statistical-empirical (correlation-regression-dependent) laws, it has not always been easy to apply gri in practice. it should be noted that the choice of gri or (and) qri and therefore the evaluation of the rating and the determination of the ranking using the financial dimension depend on the final wishes of the client of the rating agency (real estate organization) interested in them. given methods can be used. that is, based on the reo main 4 integral indicators of the real estate organization, it is better to evaluate the rating of the real estate organization and determine its ranking using the qri quantitative index using the existing methodology. gri qri ro oi oi ● ● oi oi oi oi oi american journal of business management, economics and banking volume 11 april, 2023 p a g e | 49 www.americanjournal.org list of used literature 1. decree no. up-6079 dated october 5, 2020 of the president of the republic of uzbekistan on approval of the "digital uzbekistan-2030" strategy and measures for its effective implementation. 2. shokha'zami sh.sh. treatise on smart digital republic. monograph. t.: "innovative development publishing house", 2020. 352 p. 3. shoha'zami sh.sh., sunnatov yu.u. a new approach to the analysis of financial and economic activities based on the balance sheet of companies.// scientific electronic journal "international finance and accounting" no. 5, september 2017. 4. methodology for rating rating of business activities in uzbekistan // rating agency "ahborreiting" [electronic. resource]. the method is available at: http://www.ahbor.uz//dr_kor_emit_method.php. data access: 18.07.2010. 5. tashpulatov g.t. model of interdependence of rating organizations and activities of rating evaluation in uzbekistan. // a collection of materials of the international scientific and practical online conference on the topic "prospects of development of the digital economy in uzbekistan and world practice". tashkent, higher school of business and entrepreneurship, december 24, 2020. 925-929 b. 6. tashpulatov g.t. improving the methodology of assessing the rating and ranking of rating organizations. international journal of management, it & engineering vol. 12 issue 8, august 2022, issn: 2249-0558 impact factor: 7.119– p. 28-33. 7. tashpulatov g.t. the importance of interrelated digitalization model of the activities of evaluation organizations and rating agency. international journal of research in economics and social sciences (ijress) available online at: http://euroasiapub.org vol. 12 issue 10 october2022 issn: 2249-7382 | impact factor: 8.018|,-p.16. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 96 www.americanjournal.org electronic service delivery and customer attitude of deposit money banks in yenagoa, bayelsa state ademe-godwin, doris associate professor of marketing, university of port harcourt, nigeria e-mail for correspondence: ademedoris@gmail.com opuene, james endurance 1doctoral student, department of marketing, university of port harcourt, nigeria jamesopus30@gmail.com a b s t r a c t k e y w o r d s the study’s aim is to empirically investigate the relationship between electronic service delivery and consumers attitude of money deposit banks in yenagoa, bayelsa state. customers' attitude of yenagoa money deposit banks and the delivery of electronic services are the subjects of this study. the study used a cross-sectional research design. this study's population consisted of three hundred and twenty (320) accessible customers of sixteen (16) registered deposit money banks in yenagoa, bayelsa state. using the taro yamane sample size determination formula, 178-person sample was chosen. only 168 of the questionnaires were found to be valid and useful for analysis using the spearman rank correlation coefficient and spss version 23 to test four (4) hypotheses. customers' attitude of money deposit banks in yenagoa are positively correlated with the provision of electronic services, according to the findings. one of the suggestions was that banks should try to be more creative and innovative in how they meet the needs of customers. this could be done by improving the quality of service they provide and using marketing strategies that can increase demand for and customer satisfaction with electronic banking services. customer switch, mobile apps, word of mouth, point of sale introduction customer expectations in the post-consolidation period of nigeria's banking sector are very high, justified by the belief that the exercise has crowded out incompetent banks, leaving only those who are able to compete in both domestic and on global market. customers of financial institutions can conduct financial transactions on a secure website run by the institution, which can be a retail bank, virtual bank, credit union, or building society. this technique is known as electronic service delivery (e-banking). according to central bank of nigeria (2003), electronic banking products in the nigerian american journal of business management, economics and banking volume 10 march, 2023 p a g e | 97 www.americanjournal.org banking system include automated teller machine (atm), smart cards, telephone banking, personal computer banking, mobile banking, and internet banking. banks provide a wide range of these services. the way banks organize the development, delivery, and marketing of financial products via the internet is transformed by electronic service delivery, which opens up previously unheard-of opportunities. al-hajri (2008) proposed that banks must modify service delivery in order to satisfy customers' needs by offering excellent customer service and electronic banking products. however, despite the fact that e-banking presents banks with brand-new opportunities, it also presents a number of challenges, including the development of new information technology (it) applications, the elimination of industry barriers, the entry of new competitors, and the emergence of novel business models (liao and cheung, 2003). with the spread of the internet and the expansion of the information economy, the pace and scope of the challenges are now rapidly increasing (holland and westwood, 2001). the attitude of customers has recently emerged as a significant focus for commercial banks. a service industry is the banking industry. it offers a wide range of financial services to its customers (inegbedion, 2018). as a result, a banking institution must place a high priority on providing superior customer service. customers will be more positive as a result of this. nigeria currently has a lot of banks and other financial institutions. customers' perceptions of banks are significantly influenced by the services they receive. today, there is a worldwide rise in the use of electronic service delivery in banking transactions. the use of atm cards resulted in significant shifts in how money was withdrawn from the financial sector in nigeria as well. with the increasing use of information and telecommunication technologies in the nigerian banking sector, the country has seen a rapid increase in banking transactions. every day, commercial banks in nigeria are expanding their technology-based services. in nigeria, banks and financial institutions offer a variety of services to their customers because the banking industry is entirely service-oriented. over the years, several empirical studies have been conducted by academics to explore ways to improve customer attitude (inegbedion, 2018; onyia, & tagg, 2011; inegbedion, et al. 2020). despite the work done by scholars, there is still a shortage of work that explores how electronic service delivery relates with customer attitude in deposit money banks in yenagoa, bayelsa state. statement of the problem the current state of the nature has made deposit money banks to think outside the box to retain and maintain customer satisfaction. recently, because of the redesigning of the naira, customers of financial institutions find it difficult to access cash. despite the significant changes brought about by the internet to the global banking environment, there are unmistakable obstacles, the majority of which vary across borders depending on factors such as institutional quality, infrastructure capacity, and human capital development. when businesses don't respond to customer complaints in a timely manner, that particular customer may get lost in the process. this could set off a chain reaction in which the customer tells others, who might then continue to spread bad news about the bank. however, numerous initiatives by banks to improve customer service have been observed over time. although many bank customers are now displaying expressions of dissatisfaction regarding the ebanking services provided by banks, customers are responding positively. a network failure, poor customer service, poor internet banking, and inefficient facilities are some of the reasons why some customers have been unable to access their cash for such a long time. others have experienced american journal of business management, economics and banking volume 10 march, 2023 p a g e | 98 www.americanjournal.org problems with account debits that do not release the expected funds, or they have been the victims of internet fraud. aim and objectives of the study the study’s aim is to empirically investigate the relationship between electronic service delivery and consumers attitude of money deposit banks in yenagoa, bayelsa state. specifically, the objectives are to; i. investigate empirically the relationship between mobile apps and customer attitude of money deposit banks in yenagoa, bayelsa state. ii. determine the empirical relationship between point of sale and customer switch of money deposit banks in yenagoa, bayelsa state. research hypotheses the research hypotheses formulated for the study are; h01: there is no significant relationship between mobile apps and customer switch of money deposit banks in yenagoa, bayelsa state. h02: there is no significant relationship between mobile apps and word of mouth of money deposit banks in yenagoa, bayelsa state. h03: there is no significant relationship between point of sale and customer switch of money deposit banks in yenagoa, bayelsa state. h04: there is no significant relationship between point of sale and word of mouth of money deposit banks in yenagoa, bayelsa state. operational framework fig. 1.1 operational framework of electronic service delivery and customer attitude source: adebayo, osanyinlusi, & adekeye, (2017). review of related literature theoretical foundation: technology acceptance model (davies 1989) or tam as it is commonly known, was adapted from the theory of reasoned action (fishbein & ajzen, 1975) and theory of mobile apps customer switch customer attitude point of sale electronic service delivery word of mouth american journal of business management, economics and banking volume 10 march, 2023 p a g e | 99 www.americanjournal.org planned behavior (ajzen, 1985; ajzen, 1991). tam proposes specifically to explain the determinants of information technology end user’s behavior towards information technology (saade, nebebe & tan, 2007). in tam, davis (1989) proposes that the influence of external variables on intention is mediated by perceived ease of use (peu) and perceived usefulness (pu). tam also suggests that intention is directly related to actual usage behavior (davis, bagozzi & warshaw, 1989). findings that support the tam model n are numerous (fusilier and durlabhji, 2005). the tra beliefs were replaced in the tam by perceived usefulness (pu) and perceived ease of use (peou). according to davis (1989), the user’s attitude towards acceptance of a new system is important for the successful adoption of any information system. to be clear, the quality and effectiveness of a system can only be validated with its level of users’ acceptance. it is no wonder that tam, including its extended version, has been extensively used by scholars in understanding the success factors behind the adoption of mobile financial services (mfs) such as pos (osakwe & okeke, 2016; chauhan, 2015; dass & pal, 2011; tobbin, 2010). electronic service delivery electronic service is provided via a mobile phone, internet, and self service centers, electronic service includes several elements, which are electronic retail, customer support; service itself, and service delivery (akinyele & olorunleke, 2010). the importance of electronic service as strong source of competitive differentiation through customer involved in product development process through quick feedback and enhance customer relationships, in addition to the e-service help get services at lower cost, as it achieve excellence in quality (deruyter et al., 2001). electronic service delivery enables companies to exceed the expectations of customers, and go beyond traditional consumer service, which helps these companies to invest for the long term by promoting the growth of customers, and keep customers in case of company loyalty. as a result, the uses of technology in customer service are important for access to the most basic survival goals of organization (mahmood, & hanafi, 2013). electronic service delivery is a self-service (li, & suomi,2009) instead of access to service by speaking to an employee over the phone or from behind the desk, the service is obtained through mechanical interaction and mutual between the applicant and machine and noticed that there are some challenges to electronic service providers since there is no direct contact between staff and customers, and consequently, the website became the basis for interaction between customers and organizations (fadeleh, 2010) electronic service must therefore meet customer's desires, and to be more responsive to his expectations (al-alaq, 2004). mobile apps: software programs that run on typically small and portable devices are known as mobile apps (zamfiroiu, 2014). these applications can be downloaded or installed on the devices. by 2016, the global market for mobile apps is expected to reach $52 billion. applications for ios devices are available from an app store, and those for android devices are available from google play, which was previously known as android market. applications for smartphones have recently emerged as a market for business-to-consumer communications that is expanding rapidly. smartphone sales have already surpassed desktop and notebook pc sales in terms of annual volume; smartphone sales are predicted to continue growing in the future. for branding purposes or to make their services available on a mobile platform as well, numerous large corporations have their own applications. it's hard to stand out among the nearly one million apps in the ios appstore and the roughly 700,000 apps in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 100 www.americanjournal.org google play. the majority of users do not actively search for apps, making it even more difficult to retain them. point of sale: most often, the in-store systems where customers pay merchants for goods and services are referred to as pos devices. according to akintola, akinyede, and agbonifo (2011), a pos is an electronic device that can process credit and debit cards, which are typically issued by banks. the merchant is able to collect cards as a means of payment for their goods or services thanks to the deployment of these devices at retail establishments. a point-of-sale (pos) terminal is a computerized alternative to a cash register. the ability to record and track customer orders, process credit and debit cards, connect to other systems in a network, and manage inventory are all features of the pos system, which is significantly more complex than even the cash registers of just a few years ago. customer attitude an attitude is a metal and neural state of readiness that exerts a directive or dynamic influence upon the individual's response to all objects and situations with which it is related." this state of readiness is organized through experience. to put it another way, how people feel about a product is a good indicator of whether or not they are ready to accept and use it. the definition of attitude is the evaluative influence of feelings on people when engaging in a particular behaviour (gopi & ramayah, 2007). the evaluative impact of people's good or negative feelings when engaging in a specific behaviour is referred to in the tra as attitude (fishbein & ajzen, 1975). this indicates that environmental stimuli, such as the products consumers are offered and the manner, in which they are communicated, influence attitudes. according to petty et al. (2007), an attitude is our thoughts, feelings, and actions regarding a product, television show, or retail establishment. influences can come from four main sources and attitudes can be acquired or modified in these ways: exposure to information, membership in a group, the setting, and satisfaction with a desire a customer's attitude toward a product or service is influenced by the customer's self-concept and the product or service user's image (ekinci & riley, 2003) consumer switch: customer dissatisfaction lowers the provider's evaluation, which lowers the relative evaluation in favor of alternatives and raises the likelihood of defection (oliver, 2010). according to piha and avlonitis (2015), banks ought to concentrate on minimizing customer dissatisfaction and lack of commitment due to their impact on customer abandonment. despite the fact that dissatisfaction influences customers' decisions to switch banks, it is not the only factor that leads a customer in the banking industry to switch to a competitor. there are additional factors that will influence this choice. nevertheless, we suggest that customers are more likely to leave the bank if they are dissatisfied. according to athanassopoulos (2000), the term "defection" is used in the banking industry to refer to the end of a customer's relationship with a financial institution. it can occur entirely, when the customer's account and investments are closed, indicating the end of the contract, or it can occur partially, when the customer uses fewer services and maintains a minimal balance and makes no or few transactions. in the bank setting, a few examinations relate client surrender to support disappointment (trubik and malcolm, 2000; brei and rossi 2005). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 101 www.americanjournal.org word of mouth: the willingness of the complainant to speak negatively about the brand to peers (such as family and friends) is known as negative word-of-mouth (nwom). scholars agree that nwom has significant negative effects on the object being criticized, so they investigated the significance of attributions for nwom (chang et al., 2015). according to the findings of a study on negative word-of-mouth communication, it lowers a company's credibility and decreases consumers' intentions to purchase a product or service (gildin, 2003). according to lim and chung (2011), nwom communicates credence attribute information more effectively because it is more consistent with credence belief communication. luo (2009) drew a distinction between negative wom (nwom) and positive wom (pwom) by pointing out that positive wom includes positive experiences with particular products and provides buying recommendations that are advantageous to businesses. in contrast, negative wom includes negative experiences with particular products and can be detrimental to businesses. according to wangenheim (2005), dissatisfied customers might spread negative word of mouth (nwo) about businesses or products, which could discourage potential new customers from doing business with those businesses or increase the percentage of current customers who leave. according to lim and chung (2011), it is commonly believed that negative information has a greater impact on consumer brand evaluations, is more credible, and is more diagnostic. empirical review the all-encompassing impact of information and telecommunication technologies is rapidly and profoundly altering the commercial banking industry (saroha, & diwan, 2017; chen et al. 2017; sayuti & setiawan, 2017). the banking industry has been able to respond to customer services with greater precision and speed as a result of the radical and rapid access to information and data processing methods. this situation has constrained banks all over the planet to modify the traditional methodologies of saving money with the most modern cutting edge frameworks to offer powerful and proficient types of assistance without even a moment's pause. as a result, the majority of banks have developed systems that are compatible with technology in order to provide customers with timely services at lower prices. it was absolutely terrible to anticipate prosperity and expansion while remaining indifferent to change in the banking industry and isolated from it. as a result, the banking industry was forced to become a part of an innovative culture. the global banking sector has been significantly affected by digitalization. in northern thailand, supathanish (2010) investigated how customers perceived mobile banking. according to the study's findings, customers' attitudes are influenced by trust and knowledge of internet banking. supathanish (2010) used a questionnaire with a 4-point likert scale and 324 respondents to investigate the factors that influence users' adoption of e-banking in malaysia. they discovered that users' adoption of e-banking services is significantly influenced by user convenience, accessibility, feature availability, bank management and image, security, privacy, design, content, and speed, as well as fees, charges, privacy, security, and convenience. dalia, ahmed, and omneya (2009) investigated customers' ongoing intention to use internet banking in egypt by employing a sample of internet banking service users. perceived ease of use was found to be the strongest predictor of continued use of internet banking services, and demographic factors had no significant influence on usage. in a similar vein, zheng and zhong, (2005) looked into china's adoption of virtual banking. the most important factors were found to be internet accessibility, awareness, attitude toward change, computer american journal of business management, economics and banking volume 10 march, 2023 p a g e | 102 www.americanjournal.org and internet access, costs, trust in one's bank, security concerns, ease of use, and convenience. they also discovered that the most frequently utilized virtual banking services are phone banking and atms. supathanish (2010), dalia, ahmed, and omneya (2009), as well as zheng and zhong. (2005), among others, concur with the findings. insecurity was found when chiemeke, evwiekpaefe, and chete (2006) looked into the adoption of e-banking in nigeria. inadequate facilities for operations, including telecommunications; and access to electricity to be the primary impediments to internet banking in nigeria. the majority of banks had primarily informational websites and offered few internet transactional services, indicating that the level of interactivity offered by internet banking was minimal. according to agboola's (2006) investigation of nigerian telebanking services and electronic payment systems, there has been a significant decline in the absolute volume of cash transactions as a result of a modest shift from cash to automated payments. he also said that telebanking can help banks expand their customer relationships, keep customers loyal, and increase their market share if the major obstacles they face, such as inefficient telecommunications services, an epileptic power supply, high costs, the fear of fraudulent practices, and inadequate facilities for their operation, are overcome. finally, oladejo and dada (2008) looked at how insurance firm services in nigeria were affected by information technology. they found that information technology was to blame for the recent increase in the insurance industry's effectiveness and efficiency. methodology the study used a cross-sectional research design. using a self-administered, structured questionnaire, primary data were gathered. the study used a cross-sectional research design. this study's population consisted of three hundred and twenty (320) accessible customers of sixteen (16) registered deposit money banks in yenagoa, bayelsa state. using the taro yamane sample size determination formula, 178-person sample was chosen. spearman rank order correlation co-efficient was used to analyze and test the formulated hypotheses. data analysis and result in this section, we present and analyse empirical data which has been collected through questionnaire survey. we also look at the reliability of measures. after that, the calculation of the correlation between measures of ease-of retrieval and automatic input in judgment are presented and analysed, this will follow the presentation and analysis of hypothesis testing which determined whether the hypotheses for this study is accepted or rejected. relationship between mobile apps and customer attitude h01: there is no significant relationship between mobile apps and customer defections of money deposit banks in yenagoa, bayelsa state. h02: there is no significant relationship between mobile apps and negative word of mouth of money deposit banks in yenagoa, bayelsa state. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 103 www.americanjournal.org correlation between mobile apps and customer attitude mobile apps customer defections negative word of mouth spearman's rho mobile apps correlation coefficient 1.000 .970** .988** sig. (2-tailed) . .000 .000 n 168 168 168 customer defections correlation coefficient .970** 1.000 .968** sig. (2-tailed) .000 . .000 n 168 168 168 negative word of mouth correlation coefficient .988** .968** 1.000 sig. (2-tailed) .000 .000 . n 168 168 168 **. correlation is significant at the 0.01 level (2-tailed). source: spss output, 2023 the test of hypothesis one and two, as shown in the table above, the spss output reveals that significant level (sig) = 0.000 which implies that (sig<0.01) while spearman correlation coefficient (rho) = (0.970, 0.988) also indicates that mobile apps has strong and positive correlation with customer attitude. we therefore reject the null hypotheses and accept the alternative hypotheses which state that there is a significant relationship between mobile apps and customer attitude of money deposit banks in yenagoa, bayelsa state. relationship between point of sale terminal and customer attitude h03: there is no significant relationship between point of sale terminal and customer defections of money deposit banks in yenagoa, bayelsa state. h04: there is no significant relationship between point of sale terminal and negative word of mouth of money deposit banks in yenagoa, bayelsa state. correlation between point of sale terminal and customer attitude point of sale terminal customer defections negative word of mouth spearman's rho point of sale terminal correlation coefficient 1.000 .991** .964** sig. (2-tailed) . .000 .000 n 168 168 168 customer defections correlation coefficient .991** 1.000 .968** sig. (2-tailed) .000 . .000 n 168 168 168 negative word of mouth correlation coefficient .964** .968** 1.000 sig. (2-tailed) .000 .000 . n 168 168 168 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 10 march, 2023 p a g e | 104 www.americanjournal.org source: spss output, 2023 the test of hypothesis three and four, as shown in the table above, the spss output reveals that significant level (sig) = 0.000 which implies that (sig<0.01) while spearman correlation coefficient (rho) = (0.991, 0.964) also indicates that point of sale terminal has strong and positive correlation with customer attitude. we therefore reject the null hypotheses and accept the alternative hypotheses which state that there is a significant relationship between point of sale terminal and customer attitude of money deposit banks in yenagoa, bayelsa state. discussion of findings based on the results generated via all the hypotheses, it showed that there exist a significant and positive correlation between the variables under study since their correlations from the spss table were *0.970, *0.988, *0.991, *0.964. from the result, it was apparent that all the dimensions of electronic service delivery had positive correlation with customer attitude of money deposit banks in yenagoa, bayelsa state. it is worth noted that these positive correlations cut across all the measures attributed to the variables which are found to be at different levels. thus: the first and second hypothesis indicated that mobile apps has a positive linear notable correlation with customer attitude based on the p-value less than 0.05 (p-value = 0.000 <0.05) which implies that both variables have direct positive relationship which moves in the same positive direction. the third and fourth hypothesis showed that pos has a positive linear notable correlation with customer attitude based on the p-value less than 0.05 (p-value = 0.000 <0.05) which implies that both variables have direct positive relationship which moves in the same positive direction. the findings conforms to the findings calvo-porral et al, (2017); san martin et al. (2015); ekwueme, egbunike & okoye, (2012); adeoti, (2013). conclusion the study came to the conclusion that the overall customer attitude of the banks under investigation was significantly and positively correlated with the quality of e-banking service delivery. this could be because deposit money banks in yenagoa may offer e-banking services that are more advanced. this is one of the earliest studies to examine the efforts made to investigate the linkages between ebanking and online banking and the corresponding benefits, such as reliability and efficiency for mobile apps, and point of sale terminals, based on customers' attitudes. it confirmed the work of numerous studies conducted in this area and contradicted the work of other authors regarding the role of customers in the nigerian banking industry. to comprehend the difficulties that are typically encountered when attempting to access online banking, the analysis of the drawbacks is extremely helpful. therefore, it is not enough to be aware of the benefits of online banking or e-banking; it is equally important to be aware of the disadvantages of this venture in order to achieve an error-free flow of services in online banking. managers can use the findings of this study to develop effective strategies to avert these setbacks. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 105 www.americanjournal.org recommendations the study recommends that; i. it is impossible to overstate the significance of information technology (it) in the financial industry. therefore, it is of the utmost importance that the management of the deposit money banks in yenagoa make significant investments in information technology in order to further encourage the provision of services via e-banking that are both effective and trouble-free. ii. bank management ought to try to be more creative and innovative in how they meet the needs of customers. this can be done by providing better service and marketing strategies that can increase customer demand for and satisfaction with electronic banking services. iii. in addition, deposit money banks should strive to maintain their relatively higher service quality by remaining innovative and focusing on their customers in accordance with global best practices. references 1. adebayo, p. o., osanyinlusi, g. e., & adekeye, a. o. 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(2015). customer defection in retail banking: attitudinal and behavioural consequences of failed service quality. journal of service theory and practice, 25(3), 304-326. 39. saadé, r.g., nebebe, f., & tan, w. (2007). viability of the technology acceptance model in multimedia learning environments: a comparative study. interdisciplinary journal of knowledge and learning objects, 3(1), 175-184. 40. san-martín, s., prodanova, j., & jiménez, n. (2015). the impact of age in the generation of satisfaction and wom in mobile shopping. journal of retailing and consumer services, 23, 1-8. 41. saroha, r., & diwan, s. p. (2017). modelling customer satisfaction and customer loyalty in the frame of telecommunications industry: a review. euromed journal of management, 2(1), 15-37. 42. setiawan, h., & sayuti, a. j. (2017). effects of service quality, customer trust and corporate image on customer satisfaction and loyalty: an assessment of travel agencies customer in south sumatra indonesia. iosr journal of business and management (iosr-jbm), 19(5), 31-40. 43. supathanish, t. (2010). customers' discernment of mobile banking business: northern region of thailand. in international trade and academic research conference (itarc), dba, thailand: marketing program, payap university pnd. 44. trubik, e., & smith, m. (2000). developing a model of customer defection in the australian banking industry. managerial auditing journal. 15(5), 199-208. 45. wangenheim, f. v. (2005). postswitching negative word of mouth. journal of service research, 8(1), 67-78. 46. zamfiroiu, a., & sbora, c. (2014). statistical analysis of the behavior for mobile elearning. procedia economics and finance, 10, 237-243. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 108 www.americanjournal.org 47. zheng, l., & . zhong,.y 2005. the adoption of virtual banking in china: an empirical study. chinese business review 4 (6):75–8 american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 56 www.americanjournal.org total quality management (tqm) implementation and organisational performance: a study of the telecommunication industry in bayelsa state of nigeria laguo livingstone gilbert department of business administration, faculty of management sciences federal university otuoke, bayelsa state felix oluwatayo oloda department of business administration, faculty of management sciences federal university otuoke, bayelsa state a b s t r a c t k e y w o r d s purpose the purpose of this paper is to determine the factors of total quality management (tqm) and to measure their influence on the performance of selected telecommunication companies in bayelsa state. design/methodology/approach data was collected using a selfadministered questionnaire which was distributed to 200 personnel in telecommunication companies in yenagoa, the capital city of bayelsa state. out the 200 questionnaires, a total of 188 questionnaires were returned. findings the findings from the study reveal that tqm plays critical role in the improvement of organisational performance. however, the value of top management support, quality data reporting, and process flow management are better appreciated when implementing tqm in the telecommunication organisations under study. research limitations/implications a quantitative technique was adopted in the study, the sample is restricted to organisations selected. the data were collected from both top and middle managers in the selected organisations. originality/value this study offers insight into practical and reasonable approaches of tqm variables to increase performance in the nigerian telecommunication sector. paper type research paper total quality management, organisational performance, nigeria telecommunication sector american journal of business management, economics and banking volume 14 july, 2023 p a g e | 57 www.americanjournal.org introduction the implementation of quality processes has become one of the most driving forces of competitive advantages in today contemporary organisations (okorie 2016; al-kayed et al. 2020). the identification of organisational improvement and the demand for better quality processes have instigated organisations to realize their readiness to adhere to quality procedures in order to compete successfully in the market. to meet this demanding challenges, organisations would have to invest sufficient resources in adapting and implementing quality management processes. tqm is defined as the holistic management philosophy aiming at continuous improvement in all functions of an organisation in order to produce and deliver products or services in line with customers’ needs or requirements by better, cheaper, faster, safer, easier processing than competitors with the participation of all employees under the leadership of top management (othman et al. 2020). studies shows that the role of tqm is widely recognized as being a critical determinant in the success and survival of servicing organisations in today’s competitive environment (owuso and darko, 2017; androwis et al. 2018). tqm is also seen as a source of competitive advantage (ferdousi et al, 2018; ali et al. 2020), innovation (fernandes and solimun, 2017), change and new organisational culture (asplund and bolander, 2017). this means a decline in customer satisfaction resulting from poor service quality delivery would be a serious cause of organisational failure. on the other hand, consumers are increasingly becoming aware of standards of products and services quality which makes them to develop higher expectations. regardless of the application of tqm practices in organisations (el at al. 2007; yunis et al. 2013; mirand et al. 2014; nguyen and chau 2017; youssef and youssef 2018; jimenez-jimenez et al. 2020; bhaskar, 2020; khanam et al. 2020), there is lack of methodical evidence regarding the extent to which tqm is applied and implemented in many nigerian organisations including those in servicing industry. the nigerian telecommunication sector plays a very crucial role in the development of the economy. these organisations add value to all aspects of business as well as increasing product and services consumption. in view of the fact that the nigerian telecommunication sector helps to boost nigerian economy, our study show new data and empirical insights into the relationship between tqm and performance improvement in organisations in the telecommunication sector. literature review according to munisu, (2013) quality refers to the ability of a product or service to constantly meet or exceed customer expectations. tqm has been widely accepted as a holistic management philosophy that strives for continuous improvement in all functions of an organisation (oakland, 2014). chaudary et al. (2015) add that tqm is a set of instruments employed by the firm’s management that aim to provide better value to customers by recognizing their observable and hidden needs and improve the efficiency of the procedure that generate the product or service. garvin (1987) viewed quality in terms of the transcendent, product based, user based, and manufacturing and value-based approaches. garvin identified eight attributes to measure product quality. on his own part. juran defined quality as “fitness for use” and focused on a trilogy of quality planning, quality control, and quality improvement (mitra and golder 2006). also, crosby (1996) in demirbag et al. (2006) define quality as “conformance to requirements or specifications” based on customer needs. in his work, crosby identified 14 steps for a zero defect quality improvement plan to facilitate performance enhancement. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 58 www.americanjournal.org deming (1986) view that quality is a predictable degree of uniformity and dependability, at low cost and suited to the market. deming also identified 14 principles of quality management necessary to improve productivity and performance of organisations. in his study, ishikawa emphasized the importance of total quality control due it impact on organisational performance. he added to the quality management literature by introducing a cause and effect diagram (ishikawa diagram) used to diagnose perceived quality problems (mitra, 1987). similarly, feigenbaum introduced the concept of organisation-wide total quality control and defined quality as “the total composite product and service characteristics of marketing, engineering, manufacturing and maintenance through which product and service in use will meet the expectations of the consumer” (mitra, 1987). the concerns of these quality improvement plans are management commitment, strategic approach to a quality system, quality measurement, process improvement, education and training, and eliminating the causes of problems. tqm is mainly concerned with continuous improvement in all work, from high level strategic planning and decision-making, to detailed execution work assignments at the workplace. it stems from the belief that mistakes can be avoided and defects can be prevented. chiguvi (2016) believes that the application of tqm continuously improving results, in all aspects of work. in kwesie and partners (2009) tqm is an approach to improving competitiveness, effectiveness and flexibility of an organisation for the benefit of customer satisfaction. kanji and wallace (2000) confirm that tqm is a culture of organisations committed to customer satisfaction through continuous improvement. however, tqm culture varies from one country to another and between different industries, but has certain essential principles, which can be implemented to secure greater market share, increased profits, and reduced costs. the literature of tqm identifies 12 common aspects: committed leadership, adoption and communication of tqm, closer customer relationships, benchmarking, increased training, open organisation, employee empowerment, zero defects mentality, flexible manufacturing, process improvement, and measurement. in the same vein, saraph et al. (1989) developed 78 items related to tqm practices, which were classified into eight critical factors to measure the performance of tqm in an organisations. the study labelled these factors as, role of divisional top management and quality policy, role of the quality department, training, product and service design, supplier quality management, process management, quality data and reporting, and employee relations. more so, other instruments developed to critically determine quality identified seven quality factors are; quality information, top management support, product design, process management, customer involvement, workforce management, and supplier involvement (flyyn et al, 1994), to measure the impact of tqm practices on quality performance. in their study, anderson et al. (1994) used variables such as visionary leadership, internal and external cooperation, learning, process management, continuous improvement, employee fulfilment and customer satisfaction to access quality and organisational performance. this has been used to increase continues improvement, reliability, innovative efficiency and business effectiveness. also, abdul, (2018) shows that tqm is like a pyramid that represents five distinct components; management commitment, customer supplier chain, quality systems and team work. accordingly, these are part of the measures japanese and us manufacturing/servicing firms adopted to enhance their quality processes. studies noted that same approaches are the primary reason for the success of japanese manufacturing firms, and are still comprehensively and consistent used by all levels of workers (nair & choudhary, 2016). studies revealed that germany, uk, france and italy are some of the european countries that have taken a significant interest in adopting tqm. also, rashid and taibb, (2016) noted american journal of business management, economics and banking volume 14 july, 2023 p a g e | 59 www.americanjournal.org that uk telecommunication and locomotive industries indicate that firms use to have a traditional attitude towards quality management, but an adherence to tqm they are now able to improve customer satisfaction and retention. however, developing nations such nigeria is synonymous with poor quality products. many developing countries that still recognizes the old fashion of manufacturing are still engulfed with producing shoddy products, enhance, have their production function isolated from the quality function. most organisations in the developing nations are still limited with the followings: lack of employee involvement and participation in quality improvement efforts. lack of management commitment and motivation. perception that quality is an optional extra and not a necessity for development. traditional belief that “quality costs money”. lack of communication and trust between suppliers, dealers, management and trade unions. unorganized and indifferent customers. lack of political support. lack of established quality standards and inadequate test facilities obsolete technologies. low level of education. negligible capital investment in technologies, research and development and employees’ education, etc. disrespect to the people so far as quality of life is concerned. undesirable social tensions such as terrorism, violence, religious fundamentalism, etc. but lakhe and monanty (1994) affirm that tqm implementation is a major task which most time follows stages such as: 0. understanding the organisational system. 1. developing a strategic plan for the tqm effort. 2. planning assumptions. 3. specifying strategic objectives. 4. specifying tactical objectives. 5. implementation planning. 6. project management. 7. measurement and evaluation. 8. evaluation, accountability, follow through, ensuring effective implementation. this aligned with oakland (1991) 13 steps to tqm which are: (1) understanding of quality (2) commitment to quality (3) policy on quality (4) organization for quality (5) measurement cost of quality (6) planning for quality (7) design for quality (8) system for quality (9) control of quality (10) teamwork for quality (11) capability for quality (12) training for quality (13) implementation of tqm. on the other hand, the implementation of tqm is not an easy task because it requires a total change in organisational culture, shifting of responsibility to management, and continuous participation of all in the quality improvement process. based on this al-kayed and al-tahrawi (2020) point out the barriers in implementation of tqm as lack of participation of managers, overlapping of responsibilities of leadership, limited resources, fear of change, work overloads. others scholars found other limitations american journal of business management, economics and banking volume 14 july, 2023 p a g e | 60 www.americanjournal.org as; lack of comprehensive quality improvement education, uneven top management support, lack of customer orientation, lack of clarity in measurement systems, scant resources for required investment (okorie & humphrey, 2016). this shows that tqm implementation requires concerted effort, and must be driven by top management. relating tqm implementation to performance must be communicated effectively by those in charge with such responsibility. sometimes managers failed to develop plans to would accommodate what they intend to achieve in quality implementation and performance improvement. measuring performance is critical when talking about effective management in organisations. it is not possible to improve on something without measuring it appropriately. thus, to improve on firm performance, it is important to determine the extent of tqm implementation and measure its impact on performance (neyestani & juanzon 2016). previous studies have measure tqm and different variables and aspects of organisational survival, for example, mana and patil (2015) measure financial performance of tqm and non-tqm firms. while some researchers measures tqm from customer perspective retention and commitment, and other measures tqm from internal business viewpoint (muhammad, 2018). in this study, we investigate top management support and performance, quality data and reporting and performance, process flow management and performance, training for quality and performance. so, we develop a number of hypotheses to investigate the relationship between the implementation of tqm practices and performance in the nigerian telecommunication sector. thus, first we examine the relationship between the factors of tqm considered and their impact on both measures of performance equally considered in this study. the table below depict the dimensions considered and their description table 1: tqm dimensions dimensions description top management support top management commitment is one of the major determinants of successful tqm implementation. top management has to be the first in applying and stimulating the tqm approach, and they have to accept the maximum responsibility for the product and service offering. top management also has to provide the necessary leadership to motivate all employees quality data and reporting quality information has to be readily available and the information should be part of the visible management system. records about quality indicators have to be kept, including scrap, rework and cost of quality process flow management housekeeping along the lines of the 5s concept. statistical and non-statistical improvement instruments should be applied as appropriate. processes need to be mistake proof. self-inspection undertaken using clear work instructions. the process has to be maintained under statistical control training for quality workforce management has to be guided by the principles of: training, empowerment of workers and teamwork. adequate plans of personnel recruitment and training have to be implemented and workers need the necessary skills to participate in the improvement process customer relationship the needs of customers and consumers and their satisfaction have always to be in the mind of all employees. it is necessary to identify these needs and their level of satisfaction american journal of business management, economics and banking volume 14 july, 2023 p a g e | 61 www.americanjournal.org h1. there is a positive relationship between top management support and organisational performance h2. there is a positive relationship between quality data repeating and organisational performance h3. there is a significant relationship between process flow management and organisational performance h4. there is a significant between training for quality and organisational performance h5. there is a positive relationship between customer relationship and organisational performance figure 1: research framework for the study research methodology we adopted a mixed method strategy and surveyed all managerial level and customers of all four telecommunication organisations in bayelsa state, which are mtn, globacom, airtel and 9mobile. we chose the telecommunication sector for the following reasons: first, the sector is one the growing sectors in nigeria, secondly, the sector is associated with quality work processes, thirdly, the sector has a strong potential of turning nigeria into an economic hub in africa. more so, surveying would enable this study collect data and generalized reliable and valid outcomes (saunders et al. 2009; sekarau and bougie, 2010; bryman and bell, 2011). so, both quantitative and qualitative data were collected and analyzed in order examine fully the relationship between tqm implementation and organisational performance. the dimensions of tqm identified for the study were measure through questionnaires and personal interviews. the questionnaire development followed the process recommended by (yin, 2003; creswell, 2009; saunders et al. 2009), either trialed, modified and then distribution. therefore, sixpoint likert scales (strongly disagree, disagree, slightly disagree, slightly agree, and strongly agree) were used in formatting the questionnaire. the instruments for the study were adopted from critical tqm construct, management skills profile (msp) by personnel decisions international and tqm top management support quality data and reporting process flow management training for quality customer relationship organisational performance american journal of business management, economics and banking volume 14 july, 2023 p a g e | 62 www.americanjournal.org organisational commitment questionnaire (ocq) porter and smith, 1970; sevy et al., 1985; hofstede et al. 1990), descried as unidimensionality of constructs. table 2: analysis s/n scales number of items deleted number value of cronbach’s alpha 1 top management support 10 no 0.839 2 quality data and reporting 10 no 0.855 3 process flow management 8 1 0.839 4 training for quality 10 no 0.839 5 customer relationship 8 no 0.790 table 3: questionnaire response rate s/n questionnaire distribution no of quest percentage 1 number of questionnaires distributed 200 100% 2 number of questionnaires returned 188 94% 3 number of invalid questionnaires 1 0.5% 4 number of valid questionnaires 186 93% correlation analysis is considered to help to describing the strength and direction of the relationship between variables as a well as provide initial evaluation to see if the variables are related to one another (field, 2013). bivariate correlation analysis of spearman rho shows a positive relationship between top management support (r = 0.756), quality data and reporting (r = 0.701), process flow management (r = 0.802), training for quality (r = 0.743), and customers relationship (r = 0.827) with organisational performance. this result is in line with relevant literature which indicates that these tqm variables have relationship with organisational growth, performance and success (muhammad, 2918; abu saa et al. 2019). on the other hand, the summary of regression analysis indicated that top management support (β = 0.219, p < 0.001), quality data and reporting (β = -0.357, p < 0.001), process flow management (β = 0.424, p < 0.001), training for quality (β = 0.240, p < 0.001) and customer relationship (β = 0.077, 0.137) on performance. the regression result indicates that top management and training for quality have the highest impact on organisational performance in the nigerian telecommunication sector. managerial implications and conclusion the findings of the study reveal that the tqm have a positive effect on organisational performance especially in organisations in the nigerian telecommunication sector. the result indicates that top management support (β = 0.219, p < 0.001) and training for quality (β = 0.240, p < 0.001) have the highest effects on performance, while customer relationship has low effect (β = 0.077, 0.137), on performance in this study. this shows that tqm strategy provides better services required for increased organisational performance in developing nations such as nigeria. the result equally shows that the most important variable found in this study were top management support and training for quality. the other variables are important, but this study found top management support and training for quality as the most important variable for this study. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 63 www.americanjournal.org this shows that the characteristics of top management support should appreciated when adopting tqm to increase performance. this means that organisational leaders must accept quality responsibility, support a long term quality improvement process and monitor all provide a quality feedback performance process. on training for quality, the findings indicated that training of personnel plays significant role in moving organisations forward. it shows that those responsible for quality process implementation should be given advanced training techniques, training in statistical techniques, work skill training, data process and analysis etc., to enable them fit into proper quality workplace. so managers in the telecommunication industry in nigeria needs to understand that values of tqm especially top management support or commitment, and training for quality will help them understand the tqm implementation. the findings equally shows that manager in the telecommunication selected for the study have low capacity of quality data processing, process flow management and customer relationship, which is in contrary to the literature which clarified process flow management, quality data and reporting as well customer relationship as core values to be considered when adopting and implementing tqm (oakland 2014; okorie, 2016; al-kayed et al. 2020. so, a continue adherence to other values that are non tqm implicated would not contribute to effective tqm implementation, therefore, effective tqm implementation requires an increased level of commitment, adequate quality data and reporting, property flow of management process, provide adequate training that matches the job and ensure required customer relationship. in conclusion, this study reconnoitered and discovered values of tqm required for performance improvement. the theoretical contribution and practical implications of the study have been highlighted. the study affirmed that staff development from training must persist from time to time, to enable such organisation catch up with modern requirements in the industry. strategies for customer relations must adequately considered in order to satisfy targeted customers. references 1. abdul, o. s. 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(2013), "tqm, strategy, and performance: a firm‐level analysis", international journal of quality & reliability management, 30 (6), 690-714. https://www.emerald.com/insight/search?q=mohamed%20a.%20youssef https://www.emerald.com/insight/search?q=eyad%20m.%20youssef https://www.emerald.com/insight/publication/issn/0265-671x https://www.emerald.com/insight/publication/issn/0265-671x https://www.emerald.com/insight/search?q=manal%20yunis https://www.emerald.com/insight/search?q=joo%20jung https://www.emerald.com/insight/search?q=shouming%20chen https://www.emerald.com/insight/publication/issn/0265-671x american journal of business management, economics and banking issn (e): 2832-8078 volume 7, | dec., 2022 p a g e | 55 www.americanjournal.org information technology adoption and innovation in manufacturing companies in rivers state 1ofoegbu, wilson 2princewill, sunny joshua 1, 2 faculty of management sciences, university of port harcourt, nigeria 1wilson.ofoegbu@uniport.edu.ng 2princewillsunny@yahoo.com a b s t r a c t k e y w o r d s notwithstanding the popularity of information technology (it), there is scanty literature between information technology (it) adoption and innovation within the manufacturing sector. this study investigated information technology (it) adoption and innovation of manufacturing firms in nigeria. data was collected from 121 employees from seven manufacturing firms. descriptive statistics (frequencies, percentages and charts), were generated with the aid of ibm spss version 27. three hypotheses were tested using the partial least squares structural equation modelling, with the aid of smartpls 3.2.6, while ordinal regression was used to ascertain the combined effect of the independent variables on the dependent variable. results suggest that information technology infrastructure and technology alignment moderately amplify innovation, while employee learning had a weak impact. the study recommends that manufacturing firms should have a huge budget for purchasing information technology hardware/software, and also embrace modern it applications, and should have technology or applications that supports improved products designed in compliance with certified manufacturing standard. also, employees should quickly learn and adopt modern it applications for their work. they should not see adopting to new it applications as a challenge. employee learning, information technology adoption, information technology,infrastructure, innovation, technology alignment 1.0 introduction innovation is perhaps one of the most important variables in manufacturing activities (barney, 1991). innovation is the application of new or upgraded goods, service, and process by organisations (mothe & nguyen-van, 2015). innovation gives firms competitive advantage (afuah, 1998), and aids them to stay afloat in the marketplace (hult, harley & knight, 2004), thereby improving their profitability (amabile, barsade, & mueller, 2005). according to tohidi and jabbari (2012), it helps new products, processes and services to be lucrative in the market. furthermore, innovation endows organisations with outstanding fortunes (corbett-etchevers & mounoud, 2011), and is a vehicle for economic growth (abdu & jibir, 2017). american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 56 www.americanjournal.org information technology adoption (it adoption) has been an anchor for industrial activities and is right at the centre of innovation (dahlman & nelson, 1995). the adoption of information technology by manufacturing firms gave rise to the present scientific and industrial revolutions (weill, subramani & broadbent, 2002). olusola and oluwaseun (2013) posit that in developing economies, adopting information technology is significant to increase in innovation. other benefits of adopting information technology include (i) increase in the firm’s efficiency, (ii) increase in quality of goods and services, (iii) increase in consumer demand, and (iv) reduction of production costs (hall, 2011). furthermore, organisations strive to infuse information technology into their production mechanism, and this can be achieved by internally developing (through research and development) or adopting modern technologies from developed countries (olusola & oluwaseun, 2013). accordingly, it adoption has become pivotal and recognized by organisations because of its potentially significant impact on economic growth (lee, 2008). for this study, it adoption, is decomposed into: information technology infrastructure (bharadwaj, 2000), technology alignment (venkatraman, 1989; palmer & markus, 2000), and employee learning (chonko, dubinsky, jones & roberts, 2003). information technology infrastructure (iti) helps to keep companies abreast with modern technologies and their applications (bharadwaj, 2000). it is also significant to firms by supplying the required infrastructure, which is necessary for providing appropriate types of information at the right time (sircar, turnbow & bordoloi, 2000). technological alignment (ta) (also known as strategic alignment in it adoption) is the link between information technology, the adopted technology and corporate strategy (palmer & markus, 2000). it supports technologies/strategies that empowers customer service, and to improve product/service. it is also a booster to the overall management process of the organization (palmer & markus, 2000). employee learning (el) creates a formidable platform for technological training and the application of new information technology. its importance to organisations and employees include: (i) fast learning of new information technology applications, (ii) quick adoption of new information technology applications for work, and (iii) innovation of new ideas, views and approaches. (chonko, dubinsky, jones & roberts, 2003). several scholars have written on the innovation construct at the organisational and industry levels (e.g. rogers, 1983; damanpour, 1991; srivardhini & krishnan, 2013; alsabbagh, & al khalil, 2017). others investigated it under survival (alderman, 1996), knowledge transfer (corso & paolucci, 2001), organisational dynamic capability (liao, kickul & ma, 2009), and organisational performance (suhag, solangi, larik, lakh & tagar, 2017) past research involving it adoption in the area of manufacturing sector has been scanty (chen & tsou, 2007; ghobakhloo, hong, sabouri, & zulkifli, 2012). however, it appears there are not enough empirical studies on this construct in the manufacturing sector and in nigerian context compared to other sectors such as small and medium enterprises (e.g. hassan & ogundipe, 2017; agwu, 2018). from the foregoing, it could be speculated that it adoption may have a relationship with innovation in manufacturing firms. therefore, this study seeks to investigate the nexus between information technology adoption and innovation in manufacturing firms. low level of innovation and over dependence on developed countries for technical and technological support are problems which affect manufacturing firms (ojo & ololade, 2013). other problems identified in literature include inability to create, establish and rebrand existing product line, lack of creativity and poor approach to work (wang & ahmed, 2004), “high production costs, poor american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 57 www.americanjournal.org infrastructure and poor financing” (sylva, ofoegbu & akpan, 2016, p. 78). these problems impede the innovation of this sector and have resulted in the extinction of several manufacturing firms. thus, manufacturing firms that fail to continually invest in innovation is at greater risk of having their products marginalized (dibrell, davis & craig, 2008). venkatraman (1989) found that technological alignment as a facet of it adoption accelerates innovation. according to him, whenever manufacturing firms fail to adequately deploy modern it applications, their innovative capacity will nosedive. additionally, poor innovation might be the consequence of poor employee learning (zahra & george, 2002). it is noteworthy that the manufacturing sector in nigeria is experiencing continuous drop in profitability. the contribution of manufacturing sector to real gross domestic product (gdp) is consistently reducing overtime as against the current global trend (ekpo, 2018). the contribution of manufacturing to real gdp was around 4% between year 2009 and 2019 without any major improvement in the sector. despite the current rebase of the economy, the manufacturing sector’s contribution to real gdp is between 7% and 10% between year 2014 and 2019 (central bank of nigeria (cbn), 2019). zalk (2014) argued that in order for manufacturing firms to remain in business, innovation is paramount. this view is based on the innovation report of world bank and commission on growth and development (2018) that showed evidence of persistent growth of some economies since after the second world war which includes: brazil, china, japan, malaysia, singapore, thailand. nigerian manufacturing sector lacks the requisite infrastructure to be industrialized, because of poor innovation by manufacturing firms. thus, it has become imperative that firms should improve on innovation which has a multiplier effect capable of harnessing their resources. in sum, it seems manufacturing firms in rivers state do not possess the capacity that will enable them engage in it adoption in order to increase innovation. thus, series of problems have required that a prompt investigation should be carried out to examine the relationship between it adoption and innovation in manufacturing firms in rivers state in order to provide solution to these problems. conceptual framework of the study based on the foregoing, a conceptual framework is developed as shown below figure 1.1: conceptual framework of the study. innovation information technology adoption information technology infrastructure technology alignment employee learning american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 58 www.americanjournal.org information technology adoption adapted from bharadwaj (2000), venkatraman (1989), and chonko, dubinsky, jones and roberts (2003). innovation adapted from wang and ahmed (2004). the following hypotheses are formulated for this study. ho1: there is no significant relationship between information technology infrastructure and innovation. ho2: there is no significant relationship between technology alignment and innovation. ho3: there is no significant relationship between employee learning and innovation. 2.0 literature review 2.1. baseline theories 2.1.1 technological acceptance model (tam) the technology acceptance model (tam) proposed by davis (1985) is the most widely used and recognized model for information technology (it) (awa, ukoha, & emecheta, 2012). the model points out that perceived usefulness (pu) and perceived ease of use (peou) are critical to the use of it adoption (davis, 1989). davis, defined perceived usefulness as "the degree to which an individual’s perception for particular system enhances job performance" (p. 34), and perceived ease of use “as the degree to which an individual’s intuition determines the use of a particular system" (p. 34). tam has helped scholars understand the acknowledgement of various types of information systems, and also used to evaluate the acceptance of elearning (taylor & todd, 1995). the goal of this model is to predict, explain, analyze and explore factors influencing the adoption of information technology (liao, hong, wen, pan & wu, 2018). 2.1.2 dynamic capabilities theory the dynamic capabilities theory introduced by teece & pisano (1994) emphasized that the dynamic capabilities theory emphasized that in order for organisations to achieve their overall goals, they have to be part of the internal and external systems to deal with the competitive environment (teece, pisano & shuen, 1997). according to zahra, sapienza, and davidsson (2006), dynamic capability is the ability of a firm’s principal decision-makers to change or reconfigure existing substantive capabilities, routines, and resources in a manner that meets the demands of a dynamic business environment. dynamic capability is designed to create wealth for the firms operating under environments of rapid technological change with the objective of sustaining competitive advantage by changing the resource base. examples of dynamic capability are “the acknowledgement of technological innovations, changes in consumers’ tastes/preferences and in government policy (sylva, 2018, p. 38), and tactical moves of competitors to satisfy demand conditions” (sylva & ojiabo, 2018, p.53). consequently, applying the dynamic capabilities approach on manufacturing firms in nigeria, where the business environments are uneven and unsafe, is vital for a wider context. 2.2 information technology adoption information technology is defined as “capabilities offered to organisations by computers, software applications, and telecommunications to deliver data, information, and knowledge to individuals and processes” (attaran, 2003, p. 54). lohr, (2007) submits that information technology adoption (it adoption) has globally transformed management practices and work processes. to succeed in the american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 59 www.americanjournal.org global village, organisations must be proficient in the adoption of information technology in order to reduce expenses and time spent on repetitive tasks (chinomona, 2013). thus, it adoption has transformed tasks of firms that aim to achieve the five r’s which are: producing the right product, with the right quality, in the right quantity, at the right price, and at the right time (rana, 2013). thong and yap (1995) postulated that it adoption is the application of computer hardware and software solutions that aids operations, management, and decision-making in organisations. similarly, yan, yingwu, and changfeng (2007) opine that it adoption is the application of information, computing and communication tools such as computer hardware, software, and networks as a prerequisite for connecting to the global world. it adoption improves efficiency and increase productivity in different ways leading to lower transaction cost, better resource allocation and technical improvements (olusola & oluwaseun, 2013). furthermore, it adoption aids globalization, thus, bringing the world closer and reducing the barriers to geographical distance (idiegbeyan-ose, ifijeh, adebayo & segun-adeniran, 2016). 2.2 dimensions of information technology adoption 2.2.1 information technology infrastructure a large chunk of the information technology budget of an organisation is expended on information technology infrastructure (weill & broadbent 1998), information technology infrastructure consists of computing (management and provision), research and development, electronic data interchange and shared databases, and networks (davenport, hammer & metsisto, 1989). furthermore, it helps organisations to adequately share information among various units (weill, subramani & broadbent, 2002), and enable flexibility in adapting to changes in the business environment (joglekar & yassine, 2002). it is also a key to investment and management of it infrastructures of the organisation (tanriverdi, 2005). 2.2.2 technology alignment technology alignment is the connectivity between information technology, the adopted technology and corporate strategy (chan, huff, barclay & copeland, 1997; palmer & markus, 2000). in order to achieve success, organisations can link information technology and business strategies by complementing its business and information purview, as well as the business environment (internal and external) (henderson & venkatraman, 1993). according to chan et al., (1997), and sabherwal and kirs (1994), linking information technology and business strategies is vital for information technology adoption and positively related to organisational performance. technology alignment is used as a tool to strengthen customer service and improve process management, as well as improvement of products/services (palmer & markus, 2000). furthermore, sylva (2018) submits that it is used as the “sophistication of processes, vis-à-vis: performance standardization, maintenance, emergency planning, backup recovery, and systems control” (p. 50). 2.2.3 employee learning the entire workforce in an organisation is critical in the adoption of information technology (van riel, lemmink & ouwersloot, 2004). employee learning is the acquisition of new information technologyrelated skills and knowledge by individuals in an organisation. it gives the organisation an edge of information technology in the market (scott morton, 1995; grover, fiedler & teng, 1999). the american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 60 www.americanjournal.org significance of employee learning include: (i) fast learning of new information technology applications, (ii) quick adoption of new information technology applications for work, (iii) innovation of new ideas, views and approaches, and (iv) adoption of new information technology applications to aid work effectiveness (chonko, dubinsky, jones & roberts, 2003). 2.2.4 innovation innovation is vital to organisational development as well as affirm their existence (porter, 1980; drucker, 1985). several scholars averred that innovation is the application of modern products, process, service, and organisation routine in order to gain competitive advantage (makanyeza & dzvuke, 2015). similarly, atuahene-gima (2012) postulated within the african context to include adoption of modern products, processes and technologies developed or built beyond its shores and possible adjustments made on existing products (egbetokun, richmond, oluseye & edward, 2016). hence innovation aids economic growth and a major determinant for the development of countries globally (mowery & oxley, 1995). according to wang and ahmed (2004), innovation breeds, creates and establish new ideas, approaches and product to work. in the view of esteve-perez and manezcastillejo (2008), organisations that “acquire innovation are consistent with the responsibility of being new and develop the competence to stay afloat” (p. 234). furthermore, crespi and zuniga (2011) submitted that innovation promotes competitiveness among organisations in both developing and developed countries. 2.2.5 empirical review chen and tsou (2007) studied how information technology is adopted and managed to enhance service innovation practices and competitive advantage in a survey of 558 financial firms in taiwan. using partial least square for analysis, 124 valid observations was collected and analyzed. the result revealed that all five hypotheses were positively significant with t-values and p values as: it adoption and service innovation in process (t=9.28, p < .01), it adoption and services innovation in product (t=7.56, p < .01), service innovation in process and external competitive advantage (t=3.57, p < .01) service innovation in product and external competitive advantage (t=4.80, p < .01) service innovation in process and internal competitive advantage (t=4.06, p < .01). the authors concluded that adopting information technology has positive and significant impact on service innovation practices, which in turn gives rise to increase in competitive advantage of firms. ghobakhloo, benitez-amado and arias-aranda (2011) investigates why small and medium enterprises (smes) adopt information technology (it), as well as its relationship with it sophistication. using logistic regression from a survey sample data of 121 iranian manufacturing smes. the result shows that with a r2 = 0.757, f = 71.373, f = 0.000, all hypotheses are supported. the finding revealed that external pressure, information processing needs, it-enabled innovativeness, performance and competitive pressure are the key drivers of it sophistication within smes. al-nashmi and amer (2014) studied the significance of information technology adoption factors to determine the levels of employee productivity experienced among staff working in non-governmental organisations in yemen. with a cross-sectional sample data of 138 employees, using regression analysis. the results indicate that staff in non-governmental organisations showed high employee productivity through three variables. it infrastructure (r = 0.526, p < 0.01), innovation (r = 0.485, p < 0.01), and it knowledge management related to it adoption (r = 0.543, p < 0.01). the study american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 61 www.americanjournal.org recommends that decision-makers in non-governmental organisations should know more about it adoption and ensure an efficient use of it for the purpose of improving employee productivity and consequently, enhance the outcomes of the organisation. jabbouriab, sirona, zaharic and khalida (2016) investigated the impact of information technology (it) infrastructure on innovation performance in iraqi private universities. 75 academics were chosen, using several regression techniques and results were extracted from spss. the result revealed that there is a positive and significant relationship between it infrastructure and innovation performance (r2=0.68, α=7.996, f=6.44). the authors recommended that private universities in iraq use it infrastructure as a strategic tool to enhance innovation performance. 3.0 methodology 3.1. population and sampling method the population of the study comprises of all manufacturing firms in rivers state. records from the manufacturing association of nigeria (man)-rivers/bayelsa branch reveals that 547 firms are operational. however, only seven firms were chosen as the sample frame because of proximity and accessibility. this amounted to a sample size of one hundred and twenty-one (121) employees. the names of the seven manufacturing firms and the number of employees used for the study are: air liquide nigeria plc (16), bua sugar refinery ltd (30), demcok paints (13), eastern enamelware factory ltd (10), international breweries plc (formerly pabod breweries) (25), new rivoc nigeria ltd (19), and regal cosmetics ltd (8). 3.2. data collection, questionnaire design and operational measures the primary and secondary methods of data were used to collection of data. the secondary data were retrieved from journal articles and association records, while primary data were retrieved from responses of the questionnaire administered on the respondents. one hundred and twenty-one (121) copies of the questionnaire were administered, 26 were rejected due to conflicting and incomplete information. the remaining 95 (78.5%) copies were used for analyses to determine the impact of information technology adoption on innovation. the questionnaire consists of three sections. section a has seven items describing the demographical details of the respondents, section b contains eleven statement items detailing information technology adoption in their firms, while, section c contains four items on innovation. information technology adoption was dimensionalized using information technology infrastructure, technology alignment and employee learning. the dimensions were measured using eleven indicators adopted and modified from the work of bharadwaj (2000), venkatraman (1989), and chonko, dubinsky, jones and roberts (2003). information technology infrastructure has three items (e.g., “has adopted modern internet applications”). also, four statement items were used to describe technology alignment (e.g., “design products in compliance with manufacturing standards”). finally, employee learning was observed through four statement items (e.g., “adopt new information technology applications for their work”). four statement items adopted from the work of wang and ahmed (2004) were used to describe innovation, with such items as “creating and establishing new product lines”, “repackaging existing products in the past three years”. apart from the demographic variables, all other items in the survey instrument were placed on a five-point likert scale of 1=strongly disagree to 5=strongly agree. american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 62 www.americanjournal.org 3.3 data analysis techniques the partial least square (pls) structural equation modeling (sem) was used to evaluate the research hypotheses, with the aid of smartpls 3.2.6 (ringle, wende & becker, 2015). moreover, pls-sem is distribution free (accommodates both normal and non-normal data) (fornell & bookstein, 1982). in addition, ordinal regression was used to ascertain the combined effect of the independent variable on the dependent variable. this tool is appropriate because the model satisfies the following conditions: (i) the dependent variable is measured on an ordinal level, (ii) one or more or all of the independent variables are continuous, categorical or ordinal. moreover, multi-colinearity was tested before final the analysis (mccullagh, 1980). descriptive statistics (frequencies and percentages) was reported on respondents’ demographics with the aid of the ibm spss statistics version 27. 4.0 results and discussion table 4.1: test of validity, reliability and multicolinearity ave iti ta il in cronbach alpha > 0.70 composite reliability 0.70-0.90 vif iti 0.594 0.753 0.753 0.713 4.531 ta 0.623 0.431 0.761 0.921 0.811 3.508 el 0.581 0.343 0.203 0.765 0.843 0.736 4.527 in 0.572 0.264 0.124 0.103 0.772 0.912 0.824 source: smartpls 3.2.6 output on research data, 2022 note: ave = average variance extracted. iti = information technology infrastructure, ta = technology alignment, el = employee learning, in = innovation. the off-diagonal values are the correlations between latent variables, while the diagonal values in (bold) denote square roots of aves. it can be observed in table 4.2 that the cronbach's alpha values are not below 0.7 or above 0.9 (hair jr., babin & krey, 2017). furthermore, all the latent variables reported values for composite reliability satisfied the 0.7 criterion (hair et al., 2017). thus, the instrument is reliable. it can also be deduced from the table that there is no multi-colinearity, since all the variance inflation factors (vif) (iti = 4.531, ta = 3.508, and el = 4.527) for the dimensions are not highly correlated with each other. furthermore, convergent validity of the model is confirmed through the values of the average variance extracted (ave), which is above the recommended 0.50 threshold (fornell & larcker, 1981). the table also reported satisfactory that the model demonstrates discriminant validity since the square roots of the aves (diagonal values in bold) are higher than 0.70, and are far greater than the correlations between the constructs (the off-diagonal figures). this confirms that each construct is sufficiently distinct from any other one (fornell & larcker, 1981). american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 63 www.americanjournal.org table 4.2: ordinal regression test −2 logistic likelihood = 99.495 intercept only = 51.541 final score = 99.495 chi-square = 52.046, p = 0.02 (< 0.05) nagelkerke pseudo r2 = 0.446 test of parallel lines significance p > 0.05 p = 0.994 goodness-of-fit, p > 0.05 pearson = 0.748 deviance = 1.000 dimension factor wald statistic sig. information technology infrastructure 10.165 0.001 technology alignment 9.884 0.002 individual learning 8.070 0.000 source: research data (spss output), 2022 table 4.3 shows that the logistic likelihood for intercept only (51.541), final score (99.495), chisquare (52.046), and p-value of 0.02 reports a fit model between the dimensions of it adoption and innovation. furthermore, the goodness-of-fit indices: pearson (p = 0.748) and deviance (p = 1.000) indicate that there is a fit between the proposed model and the data, since the p-values are greater than 0.05. the table also shows that 44.6% (r2 = 0.446) variance was explained by nagelkerke pseudo r2 to ascertain the extent to which all the dimensions of it adoption jointly explain the variability in innovation. furthermore, the parameter estimates for the dimensions of it adoption as reported by wald statistic showed that each dimension significantly affects innovation since the p-values are all less than 0.05 (iti < 0.001, ta < 0.002, and el<0.000). finally, test of parallel lines (p = 0.994) reveal that the slope coefficients in the model are the same across response categories since the p-value is greater than 0.05. next is the test of hypotheses using the path coefficient and t-statistic criterion. as a rule, path coefficients (β values) of .10 to 0.29, .30 to .49 and .50 to 1.0 are weak, moderate and strong correlations, respectively (cohen, 1988). also, for a two tailed test, t values greater than 1.96 are significant, while t values less than 1.96 are non-significant (hair, hult, ringle & sarstedt, 2014). table 4.3 shows the results of test for hypotheses. table 4.3: test of hypotheses null hypothesis path (relationship) path coefficient (β) standard error t-statistic decision ho1: iti -> in 0.421 0.065 2.131 not supported ho2: ta -> in 0.457 0.071 2.150 not supported ho3: el -> in 0.206 0.052 1.970 not supported source: smartpls 3.2.6 output on research data, 2022 american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 64 www.americanjournal.org table 4.3 shows that there is a moderate, positive and significant relationship between information technology infrastructure and innovation (β=0.421, t=2.131); a moderate, positive and significant relationship between technology alignment and innovation (β=0.457, t=2.150); a weak, positive and significant relationship between employee learning and innovation (β=0.206, t=1.970). therefore, ho1, ho2 and ho3 were supported. furthermore, the table reveals that technology alignment has the highest effect on innovation followed by information technology infrastructure, while employee learning is the least. this is evident in their respective β-values (ta=0.457, iti=0.421 and el=0.206). the results above suggest that improvement in information technology infrastructure will moderately promote innovation of manufacturing firms in rivers state. thus, when manufacturing firms increase their technology for hardware and software, and have access to modern internet applications, it leads to the creation/establishment of new product lines; and modern ideas/approach to work. this finding is in consonance with mithas, ramasubbu and sambamurthy (2011) who submitted that a cordial relationship between firms and clients not only promote the adoption of new technology, but also aids firms to innovate and improve their products. similarly, sylva (2018) concluded that one of the ways organisations can stay afloat is by having efficient information technology infrastructure. as such, an improved it infrastructure is the bedrock of competitive advantage. as stated in the results above, an improvement in technology alignment will moderately promote innovation of manufacturing firms in rivers state. this means that as firms rebrand their products and approach to work, it will strengthen their customer service, improve process management and all these are executed in compliance with the certified manufacturing standards. this is in tandem with venkatraman (1989) who concluded that technological alignment accelerates innovation. according to him, whenever manufacturing firms fail to adequately deploy modern it applications, their innovative capacity will nosedive. furthermore, the results suggest that improvement in employee learning will strongly promote innovation of manufacturing firms in rivers state. this means if employees are given sufficient training, it will aid the learning and adopting of modern technological applications and will lead to modern ideas and approaches to work. this finding aligns with the submission of chen and tsou (2007) that successful adoption of information technology requires that employees are provided with sufficient support and training to reap greater benefits beyond the change in technology. 5.0 conclusion, suggestions and recommendations the study empirically demonstrates that information technology adoption positively and significantly influences innovation. based on the findings, the study concludes that higher levels of information technology adoption amplify innovation. specifically, the study concludes that higher levels of information technology infrastructure and individual learning will give rise to higher level of innovation. this study appears to be first to empirically investigate the relationship between information technology adoption and innovation in manufacturing firms in nigeria. the study concludes that information technology infrastructure and technology alignment moderately amplify innovation of manufacturing firms in rivers state, while employee learning has a weak effect. this means that all the three variables are important. however, more attention ought to be given to employee learning. thus, manufacturing firms should understand that products should be designed in american journal of business management, economics and banking volume 7, dec., 2022 p a g e | 65 www.americanjournal.org compliance with manufacturing standards, invest hugely on hardware and software technology, and adopt modern internet applications in order to improve their products or services. specifically, employees ought to quickly learn and adopt modern technology and applications through intensive training to have new ideas and approaches to work, in order to create and establish new products. based on the study, the following recommendations are made. 1) manufacturing firms should have a huge budget for purchasing information technology hardware/software, and also embrace modern it applications. 2) there should be technology or applications that supports improved products designed in compliance with certified manufacturing standard. furthermore, organisations should have a mechanism that strengthens customer service and improve process management. 3) employees should quickly learn and adopt modern it applications for their work. they should not see adapting to new it applications as a challenge. furthermore, they should be given sufficient training while implementing new information technology systems and applications. 5.1 limitations for future research directions like previous studies, the findings of this study are prone to some limitations and thus, offer opportunities for further research firstly, future research should consider information technology adoption from a different perspective by using other factors such as perceived compatibility and technical know-how to investigate their study. additionally, other factors such as a moderating variable which most likely affect it adoption is not factored into the conceptual model. thus, further studies can input competitive pressure as a moderating variable. secondly, there is a noticeable gap in the characteristics of the manufacturing industry and other sectors. the peculiarities in the population parameters of other sectors can account for different research results, findings and conclusions. thus, future studies concerning the interactive nature of the variables should be 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(2014). what is the role of manufacturing in boosting economic growth & employment in south africa? retrieved on march 31, 2018 from http://www.econ3x3.org/article/what-rolemanufacturing-boostingeconomic-growth-and-employment-south-africa american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 218 www.americanjournal.org the economic essence of profit and the initial theoretical foundations of its formation khakimov fakhritdin abdusattorovich teacher assistant of termez engineering and technology institute a b s t r a c t k e y w o r d s the article describes the economic essence of profit and the characteristics of the initial theoretical framework of its formation through the views of the manifestations of antiquity, as well as some economic schools, and the conclusions as a result of which are presented. introduction although profit is a multifaceted concept from the point of view of material and intangible, basically profit is perceived as a material being, the content of this material being characterizes a positive feature in the permission of economic entities. as an economic category, the content is perceived differently. the perception of the content of profit as a derivative arises from its interpretation as a simple and complex economic category. profit is the continuous main margin between the periods of activity of business entities in market conditions. this aspect itself creates a fundamental factor in the activities of business entities. although the theory of profit in the system of economic theories was studied mainly in connection with entrepreneurial activity, the formation of profit has different views. economists and specialists were initially more interested in its formation and its use. in the conditions of modern economic development, they are more interested not in the nature of profit, but in the optimal directions of its formation, quantity, quality. discussion and results on the ancient indian economic thinking, the archaean tractate advocated the regulation of the creation of wealth through labor and the need to manage the process of distribution of commercial profits between the merchant and the state, while promoting the state regulation of the process of distribution of profits. attention is paid to the process of distribution of profit in relation to the process of formation. also, the initial economic views on the formation of profit and its essence began from the time of the ancient greek scientists ksenofont, plato, they did not systematically study the exact profit in their works. in particular, ksenofont emphasizes that with the help of money, commodity circulation can american journal of business management, economics and banking volume 22 march 2024 p a g e | 219 www.americanjournal.org be carried out and invented by people to accumulate wealth. he opposed the accumulation of money in the style of wealth, especially sharply criticized the judiciary. plato thinks about the price, emphasizing that it should be managed by the state and that as a result of it will be profitable. in the development of economic thought, aristotle systematized the views learned in his views, concerted on the basis of the criteria for the concepts of economy and xrematistics, and contributed to the gradual formation of thoughts about profit. ", ...their application as a means of accumulating profits, that is, as the capital of the judiciary, refers to the sphere of khrematistics.” [1]. from his conception of the economy and khrematistics, one can conclude that the formation of profit is precisely related to the activity of khrematistics. the fact that khrematistics is the emergence of a state of stability through trade, emphasizes that this is possession of property, wealth. "in the art of raising wealth, there will never be a limit in achieving the goal, but here the goal is to have wealth and money.” [2]. also, the fact that trading profits have been increased explains that equity capital is an unhealthy way of owning money. aristotle points out that in the circulation of ordinary goods and in the circulation of money as capital, capital is increased as a result of the movement of money. in the economic views of ancient greek scientists, it can be seen that the concept of profit stihiyali trade is widely studied. hence the meaning is that the ancient greek scientists interpreted the wealth accumulated in society and the property owned, as well as the money invested, as a profit. these views, however, led to the development of a scientifically based idea that was widely studied by economist scientists operating in the middle ages. the initial theoretical conception of the market economy from the point of view of historical economic views-the early stages of the development of the principles of the theory of profit are associated with mercantilistic economic analysis. mercantilists have also revealed the content of a number of economic categories, together with the contribution to the theory of international trade in a large scale, undoubtedly. mercantilists t.mann, d.yum, j.in the theoretical approaches of kolbers, the study of the sources of wealth profit formation took the main place. mercantilists focused widely on domestic and foreign trade activities, initially emphasizing the emergence of profit turnover. but they preferred foreign trade in the formation of profit. "in their opinion, the main source of wealth increase is foreign trade. "the usual means of multiplying our wealth and our money, emphasizes mann,is foreign trade.” [3] manifestations of primary and secondary mercantilism are the factors of the wide formation of profits, the factors of which are the setting of high prices for quality, the restriction of imports, the exclusion of gold and silver from the commodity, the seizure of markets by means of cheap goods, the permission to import goods under the conditions of an active trade balance, for acceptable trade they noted that the exchange process of course is the starting point for the emergence of profits, after which it is possible to master it. but it is necessary not to confuse the question of the source of the emergence of profit with the question of at what stage it will be assimilated. mercantilists argued that the profit will be assimilated at the stage of turnover, moving away from the nature and real source of profit, they did not know that they will appear in the process of generating profit. accordingly, according to their scientific views, foreign trade supported the active intervention of the state in order to ensure the flow of profits.to conclude from the above, it is believed that mercantilists focused mainly on ensuring the growth of the economy, increasing national wealth as a result of increasing profits through foreign trade. american journal of business management, economics and banking volume 22 march 2024 p a g e | 220 www.americanjournal.org the development of the theory of profit is a manifestation of the economic school of physiocrats – f.gene, j.it is also associated with the activity of thurgeons.in their opinion, the basis of the formation and functioning of the economy determines the natural order. physiocrats basically described the profit as a result of a special production force-the earth. they confuse the quantitative growth of agricultural production with the growth of value. therefore, they mistakenly attributed the profit in the field of production to agriculture, and in essence replaced the growth in consumer value with the growth in value. according to the concept of the manifestations of the school of physiocrats, it is noted that the economic policy of the state is the need to be implemented through agricultural relations, and the only source in the formation of profit is land. f the formation of profits.kene tries to understandtirishga through the concept of" pure product". with the participation of nature, the labor of the landowner emphasizes the creation of profit -"pure product". he notes that the formed profit is a reward for the expenses that landowners have previously made to the land. in industry and sado, labor is not productive, for example, in trade, labor changes the form of matter, in trade, the movement of goods occurs, the most basic of which is the prohibition of the formation of new matter. in industry, "pure product" is not formed, the fact that the value of industrial output is equal to the cost of production, they receive profit in the form of wages of employees. they see trading profits as a result of calculation and deception. therefore, the formation of profit is again evidenced by the point of view of the agricultural system: "profit is not a confidence in nature, it is similar to a percentage, and its appearance is"derived" from the rent of land. [4] the first representatives of the classical political economy school a.smith and d.ricardos seriously studied the essence of profit. initially, the study of profit was extensively studied in industrial production and then in the areas of research kengaytirib non-manufacturing. a. smith expressed the profit as an economic category in terms of labor value theory. he studied the properties associated with the formation of profit on the basis of the creation of value by labor.therefore, not according to the theory of production costs, but together with the determination of the value of tokens through labor, a. smith formed the economic category of value as a sum of revenues. the main features of the formation of such a profit were based on further research, which made a huge contribution to the development of the theory of profit. conclusion when considering the economic essence of profit, we considered it important to note its following characteristics from a modern economic point of view: profit represents the form of profit taking of an entrepreneur engaged in a specific activity.this is a simple form of expression of benefit, which does not fully reveal its meaning. the results of activities in some areas of the negaki will not be related to profit making. profit is a form of income of an entrepreneur, and a profit is a capital that is put on a commercial with the aim of achieving success.the negaki profit category is associated with the category of capital-the main factor of production. american journal of business management, economics and banking volume 22 march 2024 p a g e | 221 www.americanjournal.org references 1. ядгаров я.с. история экономических учений: учебник. — 4-е изд., перераб. и доп. — м.: инфра-м, 2009. — с.54 2. бартенев с. а. история экономических учений: учебник22е изд., перераб. и доп. м:магистр инфра-м, 2013. — с.37. 3. бартенев с. а. история экономических учений : учебник.22е изд., перераб. и доп. — м. : магистр : инфраа-м, 2013. — с.59. 4. бартенев с. а. история экономических учений : учебник / 22е изд., перераб. и доп. — м. : магистр : инфраа-м, 2013. — с.68. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 73 www.americanjournal.org the procedures of the external auditor in accordance with the international auditing standard (710) in auditing the comparative information of the government financial statements hasan maytham kareem(1) al-furat al-awsat university, samawah technical institute, iraq hassen1995.29@gmail.com assist. prof .raid hassan ali(2) raidhassan2007@yahoo.com assist. prof .dr. akeel dakheel kareem(3) aqeel2017@mu.edu.iq department of accounting, college of administration & economics, al-muthanna university, iraq(2,3) a b s t r a c t k e y w o r d s the research aims to demonstrate the most important effective auditing procedures in accordance with the international standard (710) for auditing, which defines the responsibility of the independent external auditor when auditing the current financial statements and matching them with the basic financial information included in the financial reports for the previous period in order to strengthen his opinion about the financial statements in general, as well as highlighting light on the most important control observations issued by iraqi federal financial supervision bureau resulting from auditing the comparative financial information of the current and previous government final account by matching the amounts in the financial records of some government institutions, which showed the presence of debit and credit account balances, advances and trusts that are contrary to their accounting nature, because the financial expenditures exceed the financial financing the receipt from the ministry of finance, based on the rights of others with these government institutions, despite the fact that the iraqi federal financial supervision bureau held several meetings between institutions whose records show debit balances, advances, and trusts that are contrary to their nature. comparative information, other information, the responsibility of the external auditor. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 74 www.americanjournal.org introduction the independent external auditor should obtain sufficient and appropriate audit evidence related to the financial statements for the previous period and the current period, as the international auditing standard (315) indicates that the external independent must obtain an understanding of the economic entity and its environment, including its internal control, sufficient to identify and assess the risks of material misstatement. comparative information in the current financial statements by comparing them with the amounts and disclosures of the previous financial statements and including them as an integral part of the financial statements for the current period. accordingly, (hasan, atshan, & abd, 2023). the external auditor should evaluate whether the accounting policies for the previous period are consistent with the accounting policies for the current period, and in the event that the independent auditor fails to detect misstatements. material resulting from fraud, and his issuance of a clean opinion despite the existence of these distortions mentioned in this framework, (haron, chambers, ramsi, & ismail, 2004). or his failure to exert due professional care in his implementation of these procedures, and it was possible for the auditor to discover this fraud if he adhered to the performance of the instructions and procedures mentioned, then he is responsible for this fraud, and bears all the legal responsibilities ensuing from that, and from this standpoint, what is the concept of comparative information will be discussed according to the international auditing standard (710) and what are the responsibilities and procedures of the external auditor when auditing the lists and financial statements in government institutions. theoretical framework first: the concept of comparative information international standard (710) on auditing defines the responsibility of the independent external auditor for dealing with comparative information in the financial statements of the economic entity subject to audit. when not auditing the financial statements for the previous period, (appelbaum, kogan, & vasarhelyi, 2018) the external auditor should obtain sufficient and appropriate audit evidence related to the financial statements for the previous period, as the comparative information means the amounts and the disclosures contained in the financial statements that relate to a previous year or more, which are compared to that information in the financial statements for the current period and included in the statements of the financial statements for the current period, (haron, chambers, ramsi, & ismail, 2004) accordingly, the external auditor should evaluate whether the accounting policies for the previous period are consistent with the accounting policies for the current period. the external auditor is also liable for material misstatements related to other information in documents containing audited financial statements, (malaescu & sutton, 2015) the other information refers to the information contained in the audited financial statements, in which material inconsistency may raise doubts about the audit conclusions, and doubts may extend to the external auditor’s opinion on the financial statements. which are included in the statement of financial position as of 31/12 raise doubts based on the opinion of the external auditor in the financial statements as a whole, (lin & fraser, 2003) other information may include american journal of business management, economics and banking volume 12 may, 2023 p a g e | 75 www.americanjournal.org various forms, including elements such as management reports or documents related to the economic entity. second: disclosure of comparative information in the financial statements: there are several methods that can be used to disclose comparative financial information in financial reports, depending on the nature of the information and its relative importance. the following are the methods used in disclosing comparative financial information: (el toby, kareem, & abd, 2022) comprehensive disclosure: this type of disclosure is based on the design and numbers of financial statements so as to accurately portray the economic events during the fiscal year, and therefore all appropriate information must be presented. full disclosure may be seen as meaning excessive information is displayed, and therefore it is inappropriate. too much information is harmful, because displaying unimportant details hides essential information, and thus makes financial reports difficult to interpret,(sheu, chung, & liu, 2010) • adequate disclosure: it means the disclosure of the minimum amount of information that must be disclosed as a group within the financial statements and reports, as this type of disclosure is more common in use, but it assumes a minimum level of disclosure in order to comply with the objectives of financial reports, as it is not distorted, (kawamoto, 2001). • mandatory disclosure: this type of disclosure occurs as a result of the economic entity exposure to pressures by many parties and forces, not only the shareholders, but other parties such as workers, customers, professional organizations, non-governmental organizations, lenders, and suppliers, who have begun to demand that economic entities disclose information that exceeds the information required by the standards. and throw information required by standards and laws. • voluntary disclosure: it is defined as the amount of information that is disclosed in the financial statements and reports specified by the competent professional bodies and in accordance with international and local standards for each country. • disclosure through notes of the financial statements: as the notes or margins of the financial statements explain the items appearing in the body of those statements, if the financial statements do not give a complete picture of the performance of the economic entity and its financial position, the notes provide additional information to clarify that picture, and therefore this information is not required it should be quantitative and not classified as a component of the financial statements, (thuy, khuong,, canh, & liem, 2021) • third: the responsibility of the external auditor according to the international auditing standard 710: when the independent external auditor audits the financial statements for the current period, he should be aware of the circumstances and events related to the financial statements for the previous period, and these circumstances may include differing opinions american journal of business management, economics and banking volume 12 may, 2023 p a g e | 76 www.americanjournal.org of the auditor, updated opinion, and changes in previous auditors. the external auditor should also obtain sufficient and appropriate audit evidence that the corresponding figures meet the requirements of the applicable financial reporting framework, (kassem & higson, 2016). and the external auditor must also ensure that the accounting policies used for the corresponding figures are in line with those for the current period, or whether appropriate adjustments have been made or adequately disclosed. the corresponding figures are consistent with the amounts and other disclosures presented in previous periods, or whether appropriate adjustments have been made and disclosed. if the auditor is unable to obtain sufficient appropriate audit evidence with respect to the opening balances, he is required, under audit standard (705), (fakhfakh, 2016). to express a qualified opinion, or to refrain from expressing an opinion on the financial statements, as the case may be. the external auditor must also maintain on the tendency of professional skepticism in accordance with international standard on auditing no. (200), as the auditor must adopt professional doubt during the audit, aware of the possibility that there may be material errors due to fraud, despite the auditor’s previous experience with regard to the honesty and integrity of the management of the economic entity and those charged with governance. unless the auditor has reason to believe otherwise, (obaidat, 2007). he may accept records and documents as authentic, but if circumstances identified during the audit cause the auditor to believe that a document is incorrect, or that terms in the document have been modified but not disclosed to the auditor, then he the auditor should conduct further investigations. also, the auditor should evaluate the extent to which the financial statements and reports were presented and classified fairly and correctly when compared with the comparative information, and he should verify the financial information included in the previous financial statements according to the materiality standard (320), as following the materiality not only when planning and executing the audit work, but also when issuing the audit report, and there are two basic types of materiality that can be clarified as follows: (lakis & masiulevičius, 2017) relative importance at the level of transactions and account balances: as it indicates the amount of deviation that the auditor will accept in the group of operations or disclosure in the financial statements before concluding that the appropriate disclosure in the financial statements may mislead its users, and it also provides the basis for setting the maximum amount of deviation that the auditor will accept in the group of operations or disclose the financial statements before concluding that the appropriate disclosure has been deviated in a manner that is material, and materiality at this level determines the nature, timing and scope of the audit procedures to be performed in connection with the group of operations or disclosure of the financial statements. in the event that the external auditor does not discover any material misrepresentation in the comparative information of the financial statements, (mburu , birner, & zeller, 2003) but there are possibilities of misrepresentation resulting from fraud, then the auditor should collect additional evidence based on the guidelines described in this framework, to confirm or dispel these possibilities, and if confirmed, issue the auditor may obtain a conservative or adverse opinion according to the impact of distortions on the financial statements as a whole or on one or some of the assertions contained therein. if these possibilities are • american journal of business management, economics and banking volume 12 may, 2023 p a g e | 77 www.americanjournal.org absent, the auditor will issue a clean opinion, and if he cannot confirm or deny it despite the additional evidence, he should refrain from expressing an opinion. mentioning the reasons in each case, (hasan, atshan, & abd, 2023) avoiding audit risks at the level of financial statements: audit risks at the level of financial statements are taken into account during the planning stage, and the auditor must, at this stage, carry out a comprehensive assessment of audit risks in the light of his knowledge of the company's business, the industrial sector in which it operates, its management, and the environment surrounding. this evaluation shall be the basis for providing the necessary information for the general approach to the audit mission, the needs related to the audit staff, and drawing the general framework according to which the relative importance is determined and the risks are estimated at the level of account balances or at the level of the group of operations. audit risks are at the level of the account balance or the type of operations, (el toby, kareem, & abd, 2022) third: external auditor procedures for comparative information in government financial statements: the process of classifying government financial statements differs from one country to another, but despite this difference, government financial statements can be divided into two groups, which are the budget accounts. the financial position includes the list of government financial position. for the purposes of auditing and control, the external auditor performs a set of procedures to ensure that the information of the elements of the financial position statement for the current year is compared with the information of the elements of the financial position statement for previous years, as follows: (abd, kareemb , & kadhim, 2019) • checking the balances of the advance account statement, which includes various advances, including advances for the implementation of works and services, advances for employees, advances for contractors, other temporary advances ..... etc. and it consists of four fields the first is for the type of advance (details) and the second is for the balance at the beginning of the year the third is for the movement during the year and the fourth is for the balance at the end of the year, and making sure that the total is posted to the financial position statement on the liabilities side. • american journal of business management, economics and banking volume 12 may, 2023 p a g e | 78 www.americanjournal.org checking the balances of the withholding account statement, which includes various withholding , including revenue collection withholding , tax withholding , customs withholding , dfi withholding , court withholding , execution withholding , endowment withholding ...etc. it consists of four fields, the first for the type of trust (details). the second is for the balance at the beginning of the fiscal year, the third is for the movement during the year, and the fourth is for the balance at the end of the year, making sure that the total is posted to the financial position statement on the liabilities side. • checking the balances of the debtors statement, which includes the statement of debtors to the treasury account resulting from a shortage of cash in the fund as a result of accounting errors or embezzlement. • checking the balances of the creditors' account statement, which includes the movement of creditors (creditors of returned salaries, statutory insurance for contractors, the real estate bank, deductions for late fines .... etc.) and consists of four fields, the first for details, the second for the balance at the beginning of the fiscal year, the third for the movement during the year, and the fourth for the balance in end of year. • checking the balances of the revenue statement, which includes the total revenues for the current age compared to the previous year and includes other fees (stamp duty, health insurance fee), as for capital revenues, it includes (selling capital assets such as furniture, cars, machinery, weapons and equipment, means of transportation, etc.) and rental income state funds (such as renting buildings and squares) while transfer revenues include retirement endowments and delayed interest. there are also unclassified revenues that include miscellaneous revenues, and make sure that the total is transferred to the accounting department under the revenue item during the year in the statement of financial position. • checking the bank note balances (debit and credit), as the debit and credit bank notes are used as an accounting document to record expenses or revenues that are made by the bank. • checking the balances of the cash register in the fund accounting / 66: this register is used for the purpose of recording the amount received by the cashier in the fund according to the receipts of accounting / 37a, as the amounts received are recorded in the field of receipts, whether cash or checks, as they are after that, the amounts received are collected and deposited in the bank according to the deposit receipts, and then the entry document is organized with the amounts deposited in the bank, and thus the record is closed. a copy of this record and the deposit receipts are attached with the entry document for control purposes. • american journal of business management, economics and banking volume 12 may, 2023 p a g e | 79 www.americanjournal.org practical side in the practical aspect, reliance will be made on what was published by the federal board of supreme audit of control reports during the third quarter of the year (for the period from 1/7 to (9/30/2018), which included the most important common observations between government institutions, which are control observations resulting from a comparison of the information they contain. previous financial reports with current financial reports as follows: 1-the annual movement of the advances account in the current and investment budgets in the iraqi state institutions. the table below shows the balance of the annual movement of the advances account in the current and investment budgets and the rates of increase in them. so the balance of the unified cash advances account for the current and investment budgets amounted to (113000) iraqi dinars (one hundred and thirteen trillion iraqi dinars) until 12/31/2013 compared to the amount (60000) billion iraqi dinars (sixty trillion iraqi dinars) as in 12/31/2010, and the increase was a percentage (35%) for the year 2010, and it increased by (23%) compared to the account balance for the previous year (2012). respectively, while the percentage of increase in the balance of advances to the investment budget was (3, 39, 27%) for the same years, respectively. the accumulation of advances in these huge sums leads to distortion of the budget execution account and showing the expenditures in a way that is not true. it is an indication of those units of agreement in settling the advance balances, in addition to the weak role of the ministry of finance in following up the advance balances and the process of paying them in a timely manner. total (billion iraqi dinars) growth rate over the previous year investme nt budget (billion iraqi dinars) growth rate over the previous year current budget amounts (billion iraqi dinars) year 2010 41000 ـــــــ 19000 ـــــــ 60000 74000 43 27000 15 47000 2011 91000 39 38000 13 53000 2012 113000 27 48000 21 64000 2013 2the planned expenditures for the accounts (other allocations / 3119, workers’ wages / 3121) were exceeded in most municipal institutions without obtaining the original approvals for this during the year 2016, and the municipalities of wasit justified this by receiving sums from the treasury grant and the cleaning grant from the governorate and the ministry of finance not accepting transfers on account (31), as well as and as indicated in the table below: checking the cash balance certificate in the bank accounting / 44: this certificate is used to perform the process of matching the cash balance of the bank account according to the records (general daily record 86) with the cash balance of the bank account in the bank statement that is sent by the bank monthly. • american journal of business management, economics and banking volume 12 may, 2023 p a g e | 80 www.americanjournal.org dinars excess percentage actual expenses million iraqi dinars planned expenses million iraqi dinars account name 75% 618 352 other provisions / 3119 188% 1901 660 workers wages / 3121 3the failure of some institutions affiliated to ministries and independent bodies to take advantage of the annual financial allocations allocated to them by the ministry of finance, which indicates the lack of adoption of scientific bases in monitoring these allocations, which leads to the non-benefit of other parties from them. also, checks in the amount of (2178) million dinars (two billion, one hundred and seventy-eight million dinars) were revoked, and the amounts of those checks were reversed, and the competent supervisory authority was not informed of the reasons for that. 4amounts were disbursed for projects dating back to the year / 2016 in contravention of the provisions of article (2-1third) section two of the federal budget implementation instructions for the year / 2017, which stipulated adherence to the appropriations allocated in the federal general budget, and the financial commitment should not be entered into in excess of the financial budget allocations except in the case of resorting to transfers after obtaining the approval of the ministry of finance. conclusions: the financial information is generally disclosed through the financial statements and the additional financial statements attached, as it provides details of some of the items that were mentioned in the body of the financial statements and reports, and includes detailed statements of the items of fixed assets and their accumulated depreciation. in government institutions, current financial information is disclosed. and the previous one through the record of annual accounts consolidation, in which the accounting data is recorded from the trial balance and the analytical account statements attached to it for the month of december of each year and for the period of the final accounts of the same year, in order to achieve the integration of the accounting cycle by rotating those corresponding financial statements from year to year. other,. this requires the external auditor to avoid audit risks at the level of the account balance and at the level of the financial statements. as the financial records of some government formations showed balances for debit and credit accounts, advances, and withholding that violate their accounting nature, due to the disbursement of more than the funding received from the ministry of finance, depending on the rights of others with these institutions. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 81 www.americanjournal.org references: 1. abd, w. h., kareemb , a. d., & kadhim, h. a. (2019). audit program proposal for local accounts auditors: applied research on a group of international auditing standards.. international journal of innovation, creativity and change, pp. 7(8), 201-222. 2. appelbaum, d. a., kogan, a., & vasarhelyi, m. a. (2018). . analytical procedures in external auditing: a comprehensive literature survey and framework for external audit analytics.. journal of accounting literature. 3. el toby, b. h., kareem, a. d., & abd, w. h. (2022). the possibility of applying international accounting standards in the public sector (ipsas) in the iraqi government accounting system: exploratory research for the opinions of accountants at the university of al-muthanna. international journal of professional business review:, pp. 7(2), 15. 4. fakhfakh, m. (2016). linguistic performance and legibility of auditors’ reports with modified opinions: an advanced investigation based on the isas on audit reports.. asian review of accounting, pp. 24(1), 105-130. 5. haron, h., chambers, a., ramsi, r., & ismail, i. (2004). the reliance of external auditors on internal auditors. managerial auditing journal. 6. hasan, m. g., atshan, a. a., & abd, w. h. (2023). the impact of the relationship between supervisors of commercial banks and the work of the external auditor, a study according to the international auditing standard (1004). journal of corporate finance management and banking system (jcfmbs) , pp. issn: 2799-1059, 3(03), 14-28. 7. kassem, r., & higson, a. w. (2016). external auditors and corporate corruption: implications for external audit regulators... current issues in auditing, pp. ,10(1), p1-p10. 8. kawamoto, j. (2001). the development of the group accounts disclosure system in japan.. accounting, business & financial history,, pp. 11(3), 331-348. 9. lakis, v., & masiulevičius, a. (2017). acceptable audit materiality for users of financial statements.. journal of management, pp. 2(31), 117-125. 10. lin, k. z., & fraser, i. a. (2003). the use of analytical procedures by external auditors in canada. .. journal of international accounting, auditing and taxation, pp. 12(2), 153-168. 11. malaescu, i., & sutton, s. g. (2015). the reliance of external auditors on internal audit's use of continuous audit. .. journal of information systems, pp. 29(1), 95-114. 12. mburu , j., birner, r., & zeller, m. (2003). relative importance and determinants of landowners’ transaction costs in collaborative wildlife management in kenya: an empirical analysis. .. ecological economics, pp. 45(1), 59-73. 13. obaidat, a. n. (2007). auditors compliance with international standards on auditing (isas): evidence form jordan.. journal of social sciences, pp. 3(4), 185-189. 14. sheu, h. j., chung, h., & liu, c. l. (2010). comprehensive disclosure of compensation and firm value: the case of policy reforms in an emerging market.. journal of business finance & accounting,, pp. 37(9‐10), 1115-1144. 15. thuy, c. t., khuong,, n. v., canh, n. t., & liem, n. t. (2021). corporate social responsibility disclosure and financial performance: the mediating role of financial statement comparability. . sustainability,, pp. 13(18), 10077. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 82 www.americanjournal.org american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 115 www.americanjournal.org analysis and solutions of the gender factor in the management of the modern uzbek urban ecosystem khaydarova khilola khislatovna basic phd student of the department of sociology of the national university of uzbekistan е-mail: hilolahaydarova@mail.ru a b s t r a c t k e y w o r d s the article describes the gender relations characteristic of the uzbek society. the importance of paying special attention to the problems of managing urban ecosystems and a gender approach in their solution is also emphasized. as part of the topic, gender relations in the households of uzbeks were analysed, as well as the impact of gender relations on the urban ecosystem. in addition, the article examines and analyses the views of scientists on gender approaches. gender, management, city, urban ecosystem, own territory, foreign territory. introduction social factors are very important in the management of the urban ecosystem, as are gender factors. in the daily life of the city, women and men have different views, different experiences, different lifestyles and different physical strengths. this is especially true for uzbek families living in the city. however, it should be noted that the opinion and work of both are very important in managing the urban ecosystem. the urban ecosystem provides a range of services to the urban population, including provision, regulation, cultural services, and ancillary services [1:60]. women and men use urban ecosystem services differently. for example, not many men use the kitchen in the house, so its convenience is of little interest to him. but they are more concerned about where to fill their car. the main reason we use this as an example is that the convenience of the urban ecosystem is perceived differently by women and men. therefore, women and men are interested in the problems of the urban ecosystem in different ways. for example, uneven city roads, the inconvenience of a playground under high-rise buildings, the absence of trees that provide shade on hot days, the absence of a vodka shop or beauty salon near the residence, and other similar problems. different perceptions of problems testify to the importance of a gender approach in the management of the urban ecosystem. methodology & empirical analysis the gender approach to the management of the urban ecosystem makes it possible to ensure the preservation of the state of the urban ecosystem, the formation of its structure and the formation of gender roles in the processes that take place in it. the inhabitants of the city satisfy all their natural and social needs with their labours on the way to a good and happy life. mailto:hilolahaydarova@mail.ru american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 116 www.americanjournal.org however, gender differences also make meeting these needs difficult for some genders. for example, there are professions where it is difficult for women to work. most urban women are involved in housework and child rearing, as well as government work. however, there are women who do not work in the government, prefer to stay at home, or women who are prohibited from working. particular attention is paid to the profession of a woman in uzbek farms. because women are obedient to their husbands, they can only work if their husbands want to. this is due to the fact that men do not consider the profession worthy of their wives, that some women are not physically fit or the distance between the office and home, and others cannot work because their working day drags on late and they are afraid of human gossip. of course, religion also plays a big role in this. the state of the urban ecosystem can be favourable for one sex and unfavourable for the other. the main reason for this is the diversity of city streets, the presence of different flora, different fauna, a diverse service system, in some cases the presence of different people, and so on. therefore, both sexes form the concept of "my territory" and "foreign territory". in many cases, “my territory” becomes the house, territory, place of work of a person. for uzbek women, the house is the area that considers itself the safest, and uzbek men consider the house a place of rest. but those of them who have been abused and cannot find love at home think the opposite. places that are little or not visited at all are called "foreign territories". it is the "foreign zone" in the urban ecosystem that women cannot consider safe for themselves. the urban ecosystem must be accessible to all segments of the population. however, in some public places, by its design, it is less safe for women than for men [2:16]. results the gender perspective also manifests itself in social factors such as health, behaviour and interaction in the urban ecosystem. for example, if we look only at health, we see that the number and causes of death for women and men are often different. say, in 2021, 79,599 women and 94,942 men died in uzbekistan [3]. the mortality rate of uzbek women, as well as russian women, is lower than male mortality [4:46]. of these, the largest number of deaths among women was in tashkent (9323), and among men in samarkand (10624) [3]. causes of death and age differ between the sexes. for example, unfavourable trends in female mortality have been identified in women in the age group of 35-44 years [4:50]. the causes of death of the sexes are various diseases, for example, heart disease, cancer, diabetes, stroke, poisoning, various viral diseases and various accidents. and in some cases, the second sex is the cause that causes the disease. for example, women are more likely to experience violence from members of the opposite sex. the violence of a woman who gives birth to people who are an important element of the urban ecosystem will also have an impact on the next generation, which will ensure the future of the urban ecosystem. according to some studies, there is also a gender difference in the stress of city dwellers. for example, scientists argue that the first cause of stress in women is family problems, and the second is problems at work. problems in the city's ecosystem can lead to further stress. in men, on the contrary, first of all, problems at work cause stress, followed by problems in city life, problems in the family [5:13]. the main reason we are considering this issue is that people under stress cannot have a positive impact on the urban ecosystem. this may lead to other problems in the urban ecosystem. the issue of health in an urban ecosystem depends not only on the urban population, but also on other systemic elements present in the ecosystem. the ecosystem of the city, together with the urban american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 117 www.americanjournal.org population, has its own nature, flora, fauna, architecture and zones. when managing the urban ecosystem, it is important to apply a gender approach and take into account the attitude of all genders to the nature of the city. we must not forget that reform is for the individual. if the reform is carried out, but the townspeople are indifferent to it, then this will be a one-sided approach and will be ineffective. of course, there is a lot of research being done on this. one such study caught our attention. respondents were asked how often they take care of nature. of course, there were gender differences in the responses of the respondents. judging by these answers, women are more likely to worry about their nature (49%), and men sometimes (43%). however, regardless of age and gender, in everyday life there are people who prefer to treat it indifferently (7.7% of men and 4.1% of women), causing damage to the urban ecosystem [6:29]. however, this is not a positive situation, either religiously or secularly. to solve some problems in the urban ecosystem, both sexes have to protect nature. another element of the urban ecosystem is its architecture. architecture in the urban ecosystem can be divided into two structures: modern and ancient. in the architecture of almost all cities there are both ancient and modern buildings. in particular, the republic of uzbekistan also has such cities as samarkand, khiva and bukhara, which combine historical and modern architecture. as of march 28, 2022, the population of uzbekistan is 35,435,302 people. 17607802 of them are women. in terms of the permanent population of uzbekistan, the largest number of women is in the samarkand region [3]. as a historical city, samarkand is rich in various monuments. women and men together contribute to the enrichment of the ecosystem of samarkand. although women do not do as much manual labour as men, their mental labour and ideas play an important role in enriching the urban ecosystem. enriching the urban ecosystem without losing its historicity is very important in management. conclusions when we talk about the management of the urban ecosystem, we must take into account not only open areas, places that are visible to everyone, but also closed areas. for example, if an apartment in the city is littered from the inside, this also affects the urban ecosystem and the urban atmosphere. the maintenance and disposal of garbage in a simple family is also of great importance in society. but not all genders take it seriously, and this has been confirmed in some studies. when asked about the distribution of waste and garbage in the family, representatives of both sexes answered in the negative (45.1% of men and 39.2% of women). only 7% of men and 8.2% of women answered in the affirmative [6:29]. in conclusion, the urban ecosystem must serve the well-being of all genders. however, all genders must come together and put an end to the problems of the urban ecosystem, ensuring social consolidation. as mentioned earlier, the role of social consolidation in overcoming problems in the urban ecosystem is invaluable [7:116]. references 1. экосистемы и благосостояние людей: рамки оценки. доклад международной программы «оценка экосистем на пороге тысячелетия» (оэ). 2005. – с. 60 2. аслы тепеджик диш, димен к., рирдон м., андерсон т. социальные вопросы и гендерные подходы в урбанистике. пер. с анг. яз. 2014. – с. 16. 3. https://www.stat.uz/ https://www.stat.uz/ american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 118 www.americanjournal.org 4. сабгайда т.п., ростовская т.к. смертность женщин в российской федерации // экология человека. 2020. № 11. с. 46–52. 5. шиняева о.в., клюева т.в. здоровье населения крупного города: объективные и субъективные детерминанты изменений. вестник улгту, 4/2014. – с. 11-13. 6. эфанова о.а., писклакова-паркер м.п., чернова а.п. экологический гендер в повседневной жизнедеятельности как фактор формирования новых социальных норм. сolloquium-journal №10 (62), 2020. – с. 29. 7. хайдарова х.х. роль социальной консолидации в управлении городскими экосистемами. социальная консолидация и социальное воспроизводство современного российского общества: ресурсы, проблемы, и перспективы: материалы viii международной научнопрактической конференции. иркутск, 21 февраля 2022 г. – с. 116. 8. rizaev i. synergetics in social systems and its possibilities //global scientific review. – 2022. – т. 10. – с. 62-69. 9. усмонов ф. н. рациональность и традиция в развитии науки //инновации в технологиях и образовании. – 2016. – с. 349-353. 10. аликулов с. а. и др. методологические основы экономического регулирования через денежно-кредитную политику //актуальные проблемы экономики, учета, аудита и анализа в современных условиях. – 2021. – с. 13-16. 11. mardonov r. features of educational services in modern conditions //archive of conferences. – 2021. – т. 22. – №. 1. – с. 100-103. 12. тўраев б. жамиятни маънавий соғломлаштиришда ночизиқли тафаккурнинг ўрни //тафаккур зиёси. – 2018. 13. саматов х. у. парадигмальная сущность социально-экономической системы узбекистана //парадигма современной науки в условиях модернизации и инновационного развития научной мысли: теория и практика. – 2022. – с. 406-408. 14. muhammadiev, kh. potentiality and virtuality in the philosophy of modern times / kh. muhammadiev // . – 2022. – no. 3(107). – p. 1000-1004. 15. odilovna m. z. духовно моральный мир человека в контексте синергетики //austrian journal of humanities and social sciences. – 2015. – т. 1. – №. 3-4. – с. 157-160. 16. хаккулов н. к. самарканд земля просветителей джадидов //conferencea. – 2022. – с. 48-52. american journal of business management, economics and banking issn (e): 2832-8078 volume 3, | aug., 2022 p a g e | 48 www.americanjournal.org strategic thinking practices and their role in achieving organizational success"an analytical descriptive study on a sample of leaders at university of thi-qar dr. asahaq naser hussain department of business administration faculty of administration and economics university of thi-qar, iraq ashaq.naser@utq.edu.iq a b s t r a c t k e y w o r d s this study dealt with the practices of strategic thinking as an independent variable with its sub-dimensions represented by (strategic intent, holistic thinking, leading assumptions, and thinking in time) and organizational success represented by (resources, structure, management, process, knowledge management) and university of thi-qar affiliated to the ministry of education was chosen. higher education and scientific research in iraq to be the study community and to achieve the objectives of the research, a questionnaire was developed and distributed to (170) individuals, of which only (125) were returned for use,. a percentage of (74%). represented by the senior leaders who are at the rank of dean of the faculty, scientific and administrative assistant, department head, directors of centers and research, and people’s officials in all facilities and faculties of thi qar university, because they are interested and specialized in strategic thinking practices and responsible for achieving organizational success at the university, and with the aim of data processing, many statistical methods were used using the statistical program (amosv&spss. 23) to come up with a scientific outcome within the framework of this important topic, and the researcher reached a number of conclusions, the most important of which was (the existence of a quest by the senior management in the college of administration and economics in applying mechanisms that will achieve organizational success by working according to the adoption strategic thinking, organizational success, working individuals, university of thi-qar, strategic intent. mailto:ashaq.naser@utq.edu.iq american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 49 www.americanjournal.org of practices and concepts of modern strategic thinking). the most prominent recommendations were (the necessity of developing functional work paths to attract and develop distinguished individuals in strategic thinking towards the formation of strategic human capital in developing the overall performance of the organization). introduction the subject of strategic thinking is one of the important topics in the strategic thinking of business organizations, through which organizations can have the ability to achieve their strategic goals through performing comprehensive strategic thinking that ensures that the organization’s departments and employees work together to achieve the partner’s stated goals. strategic thinking is represented in being the foresight of the future and determining its direction, as it leads the organization to invest in opportunities and future changes, and helps it determine the steps that transfer the vision to reality, as well as influencing its course in order to turn the dream into reality, and the ability to think strategically is one of the most important leadership traits that leaders must possess, which is the trait that makes the leader effective. on the contrary, the lack of strategic thinking affects the work environment and causes negative experiences that are accompanied by impressions and feelings against the development and achievement of the organization’s goals. therefore, we discussed in this research the independent variable, which is strategic thinking with its four dimensions (strategic intent, holistic thinking, leading assumptions, and thinking in time), and organizational success with its five dimensions (resources, structure, management, process, knowledge management), where this research was applied to a sample of managers at the university of thi qar, and the interest in this subject is an objective reality that qualifies for friendly relations internationally, as strategic thinking is one of the actual steps that organizations take in their natural course to eliminate weakness in the internal and external dealings of the work environment, and work to address its weakness and confront all contradictions and problems that may arise in the work environment and the ability to promote and protect sustainable development and the ability to exploit the available resources within continuous and strategically protected plans supported by unifying the visions of the leaders of the organization in a working atmosphere based on mutual trust, equality, cooperation, coordination, respect for the other opinion and striving to joint development that collectively constitutes the spirit that calls for strategic thinking that helps success, stability and development so that the organizational management can keep pace with the rapid change taking place in the competitive work environment today and can achieve organizational goals that will work to achieve competitive advantage. accordingly, there must be a conscious organizational management, upon which a higher management is based, working to communicate constructive and creative ideas in a way that effectively contributes to achieving what the worker aspires to in his work environment through the strength and intelligence of the senior management and its role to achieve organizational success. first topic: methodological framework of the study first: research problem and its questions business organizations seek to search for the best strategic practices that enhance their competitive position. this quest resulted in many philosophies and administrative approaches that led to the american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 50 www.americanjournal.org necessity of applying modern administrative concepts in the management of the organization in general and strategic management in particular. perhaps the most important of these concepts is the concept of strategic thinking, which it aims to achieve organizational success through (strategic intent, holistic thinking, leadership hypotheses, and time thinking) in order to reduce all sources of waste that stand in the way of achieving organizational success in the researched organization (university of thi qar). hence, the research problem is summarized in the following questions. 1. does the organization under study realize the importance and role of strategic thinking practices in the performance of its work? 2. to what extent is the research organization aware of the importance of organizational success? 3. what is the effect of applying the dimensions of strategic thinking in achieving organizational success in the organization in question? 4. is there an impact of strategic thinking practices on achieving organizational success in the organization under study? second: research objectives 1. recognizing the reality of the impact of strategic thinking practices on the dimensions of the organizational success variable in the college of administration and economics dhi qar university through a survey of the opinions of the researched sample. 2. knowing the level of impact of the dimensions of strategic thinking on achieving organizational success in the organization in question. third: research importance 1. the importance of the research appears mainly from the importance of its variables, namely strategic thinking and organizational success at the university of thi qar, which may produce results of high importance that contribute to modifying the policies produced by the senior administration in achieving organizational success for the advancement of the educational reality in iraq. 2. the research will contribute to defining the organization in question to the need for administrative leaders characterized by non-traditional intellectual, mental and creative capabilities for the purpose of achieving success and rationality in making strategic decisions in force. 3. the research seeks to focus on the reality of strategic thinking practices and its impactful relationship to achieving organizational success in the researched organization and translating its results into a tangible reality. fourth: hypothetical scheme model based on the research problem and objectives, a hypothetical research model was developed that describes the relationship between the strategic thinking variable and the organizational success variable. it was built by collecting solid administrative literature related to research specialists, strategic management and organizational behavior. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 51 www.americanjournal.org figure (1) hypothesis research scheme fifth: research hypotheses to address the research problem and answer its questions, the following hypotheses were formulated: h1: there is a significant correlation between the strategic thinking changer and organizational success. from it emerge the following sub-hypotheses: h1.1: there is a significant correlation between strategic intent and organizational success. h1.2: there is a significant correlation between holistic thinking and organizational success. h1.3: there is a significant correlation between leadership assumptions and organizational success. h1.4:there is a significant correlation between time thinking and organizational success. h2: there is a significant effect of strategic thinking on achieving organizational success. from it emerge the following sub-hypotheses: h2.1: there is a significant effect of strategic intent on organizational success. h2.2: there is a significant effect of holistic thinking on organizational success. h2.3: there is a significant effect of assumption leadership on organizational success. h2.4: there is a significant effect of thinking about time on organizational success. sixth: research community and sample the university of thi qar was chosen as a research community of the ministry of higher education and scientific research in iraq, where this university was founded on the thirtieth of january 2000 in the city of abi al-anbiya ibrahim (peace be upon him). today, it includes twenty scientific and humanities colleges. the total number of students in the primary study is more than (20,000) male and female students in the morning and evening studies, distributed among (74) departments and scientific branches that embraced more than (1500) teachers with different titles and scientific specializations. as for the number of postgraduate students in the doctoral, masters and higher diploma stages, it has reached more than (700) male and female students, distributed among (39) scientific departments in different scientific and humanitarian disciplines. the university also includes five research centers that provided a lot of research studies and service activities: (the marshes research center, the electronic american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 52 www.americanjournal.org calculator center, the development and continuing education center, the historical and archaeological studies center, and the english language test center. these centers have completed a lot of research, studies, and courses. training, seminars, and workshops. second topic: literature review first: strategic thinking in the nineties of the last century, the concept of strategic thinking appeared in a clear academic framework, its goals and dimensions were defined, and its limits were set with other terms (sharifr, 2012:3). there has been a rapid development in this term as a result of the rapid change in the competitive environment, which has resulted in many challenges, including globalization and development in the era of technology and other environmental elements, which was greatly reflected on the concept of strategic thinking (abbas, 2019: 622), he pointed out that strategic thinking is a special way of thinking, concerned with treating insight, which results in an integrated perspective of the organization, through a synthetic process resulting from the good use of intuition and creativity in drawing strategic directions and strategic thinking depends on innovation and presenting new ideas that are difficult for competitors to imitate except at a high cost or after a long time. and (al-dulaimi, 2020: 252) defined strategic thinking as a special method concerned with addressing insight that results in a complete vision of the organization, resulting from the proper employment of both intuition and creativity in formulating strategic directions. whereas (mahmoud, russell, 2018: 159) indicated that strategic thinking means those mental and intellectual abilities and skills necessary for the individual to carry out strategic actions and practice the tasks of strategic management, from the process of defining the mission, goals and objectives of the organization, formulating and implementing the strategy and monitoring the implementation process. among the characteristics of strategic thinking are insight, environmental sensing, ability to analyze and interpret data and information, strategic choice skill, social response, comprehensive and complete knowledge of the various aspects of the organization, its environment and its activity requirements, excellence with extensive scientific and applied knowledge (faeq, 2004: 159). the importance of strategic thinking lies in the fact that it represents a method that contributes to achieving harmonization between the capabilities of the organization and the reality of competition by studying the visible and invisible relationships of all activities and their interactions with various environmental types (al-douri, 2007: 25). whereas (hussein, alwan, 2021: 327) believes that the importance of strategic thinking lies in the fact that it is one of the levels of cognitive depth that makes individuals ask about things with (why) and not with (how) only. strategic thinking is characterized by cognitive processes that require higher thinking processes such as analysis, evaluation, expectation of results and extracting them with evidence, innovation and generalization (shaheen, 2020: 423). dimensions of strategic thinking researchers and specialists in various fields presented to describe the dimensions of strategic thinking, which are usually called the elements or practices of strategic thinking (al-douri, saleh, 2009: 82). however, they did not agree on specific dimensions, so that a number of them used the same dimensions, but with different names from each other, and this is due to the reason for the recent research in the field of studying the variable of strategic thinking, as well as the variance and difference in the views of thinkers, writers and specialists in this field who are (liedtka , 1998 & hodge1998 & american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 53 www.americanjournal.org bonni, 2001 & krajew, 2005). the researchers believe that the dimensions (liedtka, 1998) of the strategic thinking variable can be considered the most appropriate and consistent for the field aspect of the study, which are as follows: 1.strategic intent: it refers to focusing and moving away from randomness, while it allows individuals in the organization to use their energies positively and effectively in order to achieve the goals of the institution, and it means the future aspirations of managers that determine the nature of the future business of the organization, and the position you want to reach in the market through the environment in which you work (ibrahim, mustafa, 2020, 15). this dimension measures the focus of the organization and its employees on the future goals of the organization. it gives the organizational energy and the way to achieve the goals by directing the energies of the employees and stakeholders to reach the long-term goals. in order to achieve competitive advantage (waters, 2011, 23). the strategic intent is based on analyzing the success of organizations to focus their attention on internal resources as a basis for development (moussaoui, 2002, 96 101). 2.holistic thinking: holistic or multiple thinking, and some may say (scattered), it works in the exact opposite direction, instead of focusing heavily on a specific issue, holistic thinking allows you to see the whole picture and reach distinct results. it is key to creativity, reframing difficult problems, and collaboration across departments and systems (naji, 2021: 57). holistic thinking is a form of perceiving and analyzing reality in a global or integrated way. sometimes related terms such as systematic thinking or complex thinking are used. from some theoretical concepts, it is opposed to a type of analytic thinking in which the system is analyzed through its parts and its functioning (danuc, 2016: 31). 3.assumptions drive: strategic thinking involves thinking and working within several uncertain assumptions and alternatives that lead to new, more appropriate hypotheses and alternatives (aldouri, ali, 2009: 30). assumptions greatly contribute to the development of new ideas for analysis and then choosing from them and completing the process of internal and external environmental analysis, and they all revolve around arriving at a new idea or skill or perhaps mixing existing elements in appropriate ways to keep pace with modern needs (karam, 2008: 15). 4.thinking of time: the process of thinking in time is one of the important things that bridge the gap between the reality of the present in which the organization is living and the future intent that it seeks to achieve, as strategic thinking is not limited to the current materials and capabilities of the organization, and it includes thinking about the future and expectations of changing these the capabilities (ibrahim, mustafa, 2020, 16). thinking about time is based on invoking the past and comparing it with reality, and then anticipating the future in order to determine what is important from the inheritance, abandoning unimportant things, and developing the present to reach the future (prism, 2010: 50). second: organizational success organizational success is represented in the ability of business organizations to exploit their internal energies and harness them to achieve their goals, by focusing on learning from past experiences, and working to confront the failures, prejudices and habits of the organization, as the process of developing and providing the necessary funds to purchase the necessary modern and advanced machines and equipment in comparison with the accelerating technological progress, and the ability to develop training programs to train employees and to employ them in an appropriate manner, it american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 54 www.americanjournal.org motivates workers to develop their capabilities and acquire new skills and experiences in the work environment, and to set regulations, instructions and policies that are flexible and can be modified to contribute to the process of sustainable success (al-abadi et al., 2016: 219). defined (daft, 2013: 33) organizational success as the organization’s obtaining the necessary resources, interpreting and working on environmental opportunities and threats, distributing products and services, and controlling and coordinating internal activities in the face of external changes and uncertainty. as for (smart, 2012: 103), he defined it as balancing an organization for its needs, aspirations, and constraints against the great interests of the communities in which it operates. while (hamdan, 2019: 208) showed that strategic thinking is a function of the ability, efficiency, willingness and desire of the organization to achieve organizational goals in a way that is based on individuals with high education and experience and looking at the professional needs of individuals working in the organization. as for (aziz, 2021: 34), it showed that organizations invest critical opportunities preceded by effective strategic planning and commitment to realizing a common vision dominated by clarity of purpose, adequacy of resources and keenness on performance. the importance of organizational success lies in giving a kind of wellbeing to working individuals as well as their performance, and that organizational success is a contemporary perspective (ibrahim, 2021: 433). as for (attia, mahdi, 2016: 330), they see that the importance of organizational success lies in its great strength that contributes to changing planning and improving the organizational environment. organizational success is of great importance for organizations, through which organizations can achieve their desired goals, as well as be able to compete and remain at the forefront of competitors with organizations (ali, 2018: 214). to achieve organizational success, the organization must reshape the organizational structure and existing systems, including the organization’s culture, create smart organizations, and improve productivity (hadi, mazher, 2020: 33). dimensions of organizational success when looking at the literature related to the variable of organizational success, it was noted that there is no clear trend by the researchers explaining the dimensions of organizational success. the success of business organizations using biotechnology, which are: (resources, structure, management, process, knowledge management), which will be explained as below. 1. resources: individuals have always been, and still are, a focal point for organizations, but their strategic importance increases in the knowledge-based album industries, where the success of the organization depends largely on the knowledge and skills of employees, skills and competencies. that distinguish the organization from its competitors, and when the talents of individuals are valuable, scarce and difficult to imitate, the organization can achieve organizational success through these resources (al-taei, al-abadi, 2014: 24). 2. structure: the organizational structure is the skeleton of any institution or organization. as it would indicate the organizational units that consist of them within hierarchical levels linked to each other by the links of authority that permeate instructions, orders, and relationships (asei et al., 2019: 102). max weber defined it as: “a set of bureaucratic rules and regulations that give individuals the right to issue orders to other individuals in a manner that achieves rationality and efficiency (kheirkhah et al., 2016:43). through the organizational structure, individuals are selected and assigned to specific tasks and roles in the value chain, and the organizational structure determines how to link those tasks and roles in a manner or form that increases efficiency, quality, creativity, american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 55 www.americanjournal.org and responsiveness to consumers, and that the purpose of the organizational structure is to coordinate and create integration in the efforts of workers at the levels of (organizational and functional) all work in an organized and functional way, implementation of a specific set of strategies in its activity model (al-abadi et al., 2012: 562). 3. management: the term management expresses a set of principles related to planning, organizing, directing, controlling, and applying them, and harnessing financial, material, human and information resources efficiently and effectively to achieve organizational goals (al-swidi, mahmood, 2011: 21). management can also be defined as the process of managing and controlling the affairs of the institution, regardless of the nature of its work, the structure of the institution, and its size. their efforts towards achieving a common goal (mahmoud, 2017: 214). 4. process: is a group of functions within an organization or company that seek to make the most of resources in a correct, rapid, and efficient manner. it includes product development, marketing strategies, and customer relationship management. whereas, the organizational processes in productive business organizations consists in finding the idea to fold products, through obtaining new ideas for goods and services desired by consumers in the target market, this is in accordance with marketing plans and strategies represented in the plans designed by the organization and specifically detailing the way to enter the new market and the method of attracting new customers, and that these strategies allow the organization to do everything in its power to increase sales and to gain competitive advantages in accordance with the program adopted by the organization that directs the market (al-abadi et al., 2014: 222). 5. knowledge management: knowledge management is defined as: a set of processes that take place within the organization, as it helps to find, generate, use, and organize knowledge, and then the ability to disseminate it, and use it in various administrative activities, decision-making, and problem solving. as: awareness of the culture of the organization, and the ability to gain and share the collective experience; in order to achieve the organization's goals and mission, knowledge management refers to the set of efforts that are being made; to accomplish the functions and successive steps in one section, or several sections, and units; to achieve long-term competitiveness, knowledge management focuses on creating an appropriate cultural environment for the organization that contributes to facilitating knowledge acquisition, transfer, and sharing. it also focuses on the effectiveness of leadership, which is a systematic management whose function is to manage knowledge assets; this is to create value and achieve strategic goals, as it supports knowledge management through the processes and strategies that contain them, in addition to storing, evaluating, and sharing knowledge (ibrahim, 2021: 433). third topic: data analysis in this topic, the levels of dimensions and variables of research in the researched company will be identified through the arithmetic mean and standard deviation, and at the same time the influence relationships between the dimensions and variables of the research will be identified, and the consistency of the research paragraphs will be identified according to the answer of the researched sample to it and the extent of the stability of the scale through factor analysis and cronbach's alpha coefficient. first: descriptive analysis of the dimensions and variables of research and correlation coefficients: the research consists of two independent variables, the first is strategic thinking and the american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 56 www.americanjournal.org follower of organizational success, as strategic thinking consists of four dimensions (strategic intent, holistic thinking, leadership of assumptions, thinking in time), while innovation consists of five dimensions (resources, structure, management, process, knowledge management). table (1) will present the statistical description of the dimensions of the research and its variables. it will summarize the arithmetic mean and standard deviation for each of them. any dimension or variable that obtains a hypothetical mean higher than (3) is considered acceptable and vice versa. , then the extent of the relationship of the dimensions and the variables to each other will be shown through the correlation coefficient. table (1) descriptive analysis of the dimensions, search variables, and correlation coefficients mean std. deviation 1 2 3 4 5 6 7 8 9 10 11 strategic intent 3.97 0.43 1 .386** .607** .398** .539** .335** .302** .261** .278** .295** .428** holistic thinking 3.83 0.46 1 .447** .561** .216* .365** .282** .176* .257** .216* .370** assumptions drive 3.99 0.36 1 .433** .370** .413** .321** .385** .373** .381** .369** thinking of time 3.94 0.41 1 .438** .481** .385** .346** .400** .455** .501** strategic thinking 3.93 0.19 1 .359** .455** .372** .418** .405** .551** resources 4.00 0.51 1 .443** .424** .525** .579** .313** structure 3.98 0.61 1 .724** .534** .625** .370** management 3.99 0.50 1 .588** .665** .353** process 4.01 0.49 1 .650** .398** knowledge management 4.02 0.58 1 .306** organizational success 4.00 0.16 1 **. correlation is significant at the 0.01 level (2-tailed). *. correlation is significant at the 0.05 level (2-tailed). it is noted from table (1) the following results: 1. statistical description of the independent variable strategic thinking and its correlation coefficient: the results showed that strategic thinking obtained an arithmetic mean (3.93) and a standard deviation (0.19), and that it obtained a correlation coefficient with organizational success (0.55), which is a positive and significant relationship according to the level of morale that was less than ( 5%), the dimensions of strategic thinking are as follows: i. statistical description of the independent variable strategic thinking through (strategic intent) and its correlation coefficient: the results showed that the strategic intent obtained an arithmetic mean (3.97) and a standard deviation (0.43), and that it obtained a correlation coefficient with organizational success (0.43), which is a positive and significant relationship according to the level of the morale, which was less than (5%) and it obtained the rank (2) among the other dimensions. ii. statistical description of the independent variable strategic thinking through (holistic thinking) and its correlation coefficient: the results showed that holistic thinking obtained an arithmetic mean (3.83) and a standard deviation (0.46) and that it obtained a correlation coefficient with organizational success (0.37), which is positive and a significant relationship according to the level of the morale, which was less than (5%), and it got the rank (4) among the other dimensions. iii. statistical description of the independent variable strategic thinking through (assumptions leadership) and its correlation coefficient: the results showed that the assumptions leadership obtained an arithmetic mean (3.99) and a standard deviation (0.36), and that it obtained a correlation coefficient with organizational success (0.37), which is a positive and significant relationship american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 57 www.americanjournal.org according to the level of the morale, which was less than (5%), and it obtained the rank (1) among the other dimensions. iv. statistical description of the independent variable strategic thinking through (thinking in time) and its correlation coefficient: the results showed that thinking in time obtained an arithmetic mean (3.94) and a standard deviation (0.41), and that it obtained a correlation coefficient with organizational success (0.50), which is a positive and significant relationship according to the level of morale, which was less than (5%), and it obtained the rank (3) among the other dimensions. 2. statistical description of the dependent variable organizational success: the results showed that the organizational success obtained an arithmetic mean (4.00) and a standard deviation (0.16), which was higher than the hypothetical mean (3), meaning that it is within the acceptable level. as for the statistical description of the dimensions of organizational success as follows: i. the results showed that the resources obtained an arithmetic mean (4.00) and a standard deviation (0.51), which was higher than the hypothetical mean (3), meaning that it was within the acceptable level, and it was ranked (4). ii. according to the results, which showed that the structure obtained an arithmetic mean (3.98) and a standard deviation (0.61), which was higher than the hypothetical mean (3), meaning that it was within the acceptable level, and it was ranked (5). iii. according to the results, which showed that the administration obtained an arithmetic mean (3.99) and a standard deviation (0.50), which was higher than the hypothetical mean (3), meaning that it was within the acceptable level, and it was ranked (4). iv. according to the results, which showed that the process had obtained an arithmetic mean (4.01) and a standard deviation (0.49), which was higher than the hypothetical mean (3), meaning that it is within the acceptable level, and it obtained the order (2). v. according to the results, which showed that the knowledge management has obtained an arithmetic mean (4.02) and a standard deviation (0.58), which was higher than the hypothetical mean (3), meaning that it is within the acceptable level, and it obtained the order (1). second: factorial analysis of the research items: in this paragraph, the consistency of the sample’s answers to the research items will be measured by extracting the saturation percentages for each item, as the application program (smart pls) provides a saturation level for each item and a significant level for each of them, and if the saturation percentage is less than (0.05) ) accept the percentage of saturation and vice versa will be omitted from the next analysis: 1. factorial analysis of strategic thinking paragraphs: strategic thinking consists of six dimensions (strategic intent, holistic thinking, leadership assumptions, time thinking, innovation, and internal communications) and each dimension consists of (5) paragraphs, and figure (2) shows the saturation rates and the level of morale for each of the dimensional paragraphs, the objective is to measure the consistency of the sample answers: american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 58 www.americanjournal.org figure (2) saturation coefficient for strategic thinking according to the results shown by figures (2), it was found that all dimensions of the independent variable strategic thinking (strategic intent, holistic thinking, leading assumptions, thinking about time) were at the acceptable level based on the level of morale that recorded percentages of less than (5%), meaning that the scale it is characterized by consistency that reflects the clarity of the paragraphs, their belonging to the objective to be measured, and the sufficiency of the sample. 2. factor analysis of organizational success paragraphs: organizational success consists of five dimensions (resources, structure, management, process and knowledge management) and each dimension consists of (5) paragraphs, and figure (3) shows the saturation percentages and the level of morale for each of the dimensions’ paragraphs, the goal is measure the consistency of the sample answers: figure (3) saturation coefficient of organizational success according to the results shown in figures (3), it was found that all dimensions of the dependent variable organizational success (resources, structure, management, process and knowledge management) were at the acceptable level based on the level of morale that recorded percentages of american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 59 www.americanjournal.org less than (5%), meaning that the scale is characterized by consistency that it reflects the clarity of the paragraphs, their belonging to the objective to be measured, and the sufficiency of the sample. third: testing the research hypotheses: it has been assumed in the research methodology, the first hypotheses test the relationship of the impact of strategic thinking on organizational success, and the second tests the relationship of the effect of the dimensions of strategic thinking on organizational success, and the simple and multiple regression method will be used to test hypotheses using the applied program (smart pls) in extracting the results, as the results appear in tables and figures, and the influence coefficient and the coefficient of determination will be relied upon in measuring the causative relationship. either rejecting or accepting the hypothesis will depend on the level of significance (0.05): 1. testing the main hypothesis: this hypothesis stated that there is a positive influence relationship for strategic thinking on organizational success at the whole level, meaning that organizational success is a real function of strategic thinking and that any modification or change in strategic thinking will be followed by a similar positive change in organizational success, and the relationship will be tested using simple regression between the two variables, figure (4) and table (2) provided by the program will be used, which displays some statistics of the simple regression analysis test, which are as follows: figure (4) the coefficient of the influence relationship for strategic thinking on organizational success table (2) the coefficient of the influence relationship for strategic thinking on organizational success original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values strategic thinking -> organizational success 0.876 0.875 0.023 37.694 0.000 american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 60 www.americanjournal.org it is noted from figure (4) and table (2) the results of the influence relationships recorded by the independent variable strategic thinking on organizational success, as the amount of influence was (0.88), which is positive, which means that any change or increase of one unit in strategic thinking will lead to an increase in organizational success. also, the relationship is significant, because the level of the achieved morale is (0.000), which is less than (5%). as for the quality of the influence relationship, the coefficient of determination reached (r2) (0.77), which means that strategic thinking explains the amount (0.77) of the variation in organizational success, and according to these results, this hypothesis is accepted. 2. test sub-hypotheses: this hypothesis stated that there is a positive influence relationship to remove strategic thinking (strategic intent, holistic thinking, leadership assumptions, thinking in time) on organizational success at the whole level, meaning that organizational success is a real function of removing strategic thinking and that any modification or change in the dimensions of strategic thinking will be followed by a similar positive change in organizational success. the relationship will be tested using multiple regression between the dimensions of the independent variable and the dependent variable. figure (5) and table (3) provided by the program will be used, which display some of the statistics of the multiple regression analysis test, which are as follows: figure (5) the coefficient of the influence relationship for the dimensions of strategic thinking on organizational success table (3) the coefficient of the influence relationship for the dimensions of strategic thinking on organizational success original sample (o) sample mean (m) standard deviation (stdev) t statistics (|o/stdev|) p values assumptions drive -> organizational success 0.363 0.362 0.097 3.76 0.000 holistic thinking -> organizational success 0.098 0.101 0.053 1.836 0.067 strategic intent -> organizational success 0.277 0.275 0.065 4.243 0.000 thinking of time -> organizational success 0.275 0.277 0.106 2.59 0.010 it is noticed from figure (5) and table (3) that the quality of the influence relationship has reached the coefficient of determination (r2) (0.81), and this means that the dimensions of strategic thinking explain the amount (0.81) of the variation in organizational success, that the results of the influence american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 61 www.americanjournal.org relationships recorded by ( strategic intent) on organizational success, as the effect was (0.28), which is positive, which means that any change or increase of one unit in (strategic intent) will lead to an increase in organizational success, and the relationship is significant, because the level of morale achieved is (0.000) it is less than (5%). according to these results, this hypothesis is accepted. as for the results of the influence relationships recorded by (holistic thinking) on organizational success, as the effect was (0.098), which is positive, it means that any change or increase of one unit in (holistic thinking) will lead to an increase in organizational success, and the relationship is not significant, and that because the level of the achieved morale is (0.067), which is greater than (5%). according to these results, this hypothesis is rejected. the results of the influence relationships recorded by (assumptions leadership) on organizational success, as the effect was (0.36), which is positive, which means that any change or increase of one unit in (assumptions leadership) will lead to an increase in organizational success, and the relationship is significant, because the level of the achieved morale is (0.000), which is less than (5%). according to these results, this hypothesis is accepted. also, the results of the influence relationships recorded by (thinking in time) on organizational success, as the amount of influence was (0.28), which is positive, which means that any change or increase of one unit in (thinking in time) will lead to an increase in organizational success, and the relationship significant, because the level of the achieved morale is (0.010), which is less than (5%). according to these results, this hypothesis is accepted. fourth topic: conclusions and recommendations first: conclusions 1. strategic thinking is one of the basic ingredients in modern organizations to defend their existence, as well as give them the required ability to compete. 2. most of the study population use strategic thinking at the organizational level more than thinking at the individual level, and therefore this is an indication of the organization's effectiveness in activating strategic thinking and the weak response of individuals. 3. the results of the analysis showed that the senior management of the organization in question has a high ability to identify all areas that help it raise the level of organizational success strategies. 4. the existence of a quest by the senior management in the college of administration and economics in the application of mechanisms that will achieve organizational success by working according to the adoption of practices and concepts of modern strategic thinking. second: recommendations 1. the necessity of involving individuals in lower departments in strategic dialogues and meetings with higher departments because they have an important role in the strategic process in organizations. 2. the necessity of developing functional work paths to attract and develop distinguished individuals in strategic thinking towards the formation of strategic human capital in developing the overall performance of the organization. 3. the necessity of involving individuals in lower departments in strategic dialogues and meetings with higher departments because they have an important role in the strategic process in organizations. american journal of business management, economics and banking volume 3, aug., 2022 p a g e | 62 www.americanjournal.org 4. the necessity of developing functional work paths to attract and develop distinguished individuals 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(2011), “understanding strategic thinking and developing strategic thinkers”, joint force quarterly, no. 63 (4th quarter), pp. 113-119. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 66 www.americanjournal.org importance of regulation and legal regulation of accounting in enterprises small business pirakhunova f.n. stars international university dean of the faculty of global business technology and finance faridapirohunova@gmail.com fayzaliyeva d. f. stars international university 3rd year student majoring in accounting and audit a b s t r a c t k e y w o r d s the authors of the article describe the main accounting methods that are used by enterprises, indicating their main regulatory and legal aspects. it is indicated how to correctly build an accounting system at an enterprise in modern conditions. the authors revealed that accounting must be maintained in order to monitor the financial position of the company and in order to be able to evaluate the results of its activities. also, apply a simplified taxation system and maintain accounting records in accordance with the law. accounting, plan of accounts, registers, financial condition, management decision, small business, enterprise. introduction currently, favorable conditions are emerging for the further development of accounting and financial reporting in the republic of uzbekistan. regulatory and legal acts have been put into effect covering most of the objects of accounting and financial reporting. the professional community accumulates certain skills and experience in accounting and financial reporting that meet the needs of a market economy. in the country's accounting community, there is a growing understanding of the need to transition to using ifrs [1]. depending on the specifics of the enterprise and the type of taxation, entrepreneurs build an accounting system, taking into account its features. the federal law on accounting regulates the correctness of work according to the chosen taxation system. by its principle, accounting generates final information on the economic condition of a small business enterprise. it reflects any changes in the financial and economic activities of the enterprise; after reviewing the statements, we will be able to see in what periods certain transactions were carried out, what is the economic condition of the small enterprise [2]. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 67 www.americanjournal.org all data is systematized and summarized. any management decisions are made based specifically on data from accounting registers. undoubtedly, it is very important, as it allows us to provide information to the management system, and to everyone at all its levels. in general, accounting information affects about 80% of the economic information of small businesses, since this information forms the basis of the information support of the system, which allows the use of mechanisms for managing small businesses [2,3,4]. target based on accounting at enterprises of various types of small businesses, it is an integral and main part of the system that allows you to manage production. the purpose of the research was to examine the implementation of economic methods that affect all aspects of the quality of a small business enterprise. methods the very concept of accounting in a management system does not imply only the use of information support functions. accounting allows you to perform an information role, namely the ability to provide control that will allow you to preserve the property of the organization. the control function of accounting shows the highest indicators in certain conditions, namely when the widespread introduction of economic methods occurs, which affect all aspects of the quality of work of a small business enterprise [4,5]. based on certain facts described above, accounting allows you to understand and show where exactly there are shortcomings in the work of a small enterprise, where there is irrational use of resources, etc., but it is also important that it helps, through the appropriate organization of the accounting service, it can put a barrier all phenomena that negatively affect work. in an enterprise, accounting is never stable; it always adapts flexibly to the economic situation of the country and specifically the enterprise itself. each enterprise must take an individual approach to accounting. in conjunction with internal company policy, as well as the narrow specifics of the organization, the founders, or persons performing official tasks, select the correct reporting forms, chart of accounts, to reflect the results of the financial and economic activities of the enterprise. main part the adopted regulatory documents include, among other things, modern principles of international reporting standards. ensuring control over property, including its movement, the use of resources, both labor, material and financial all of the above are the main tasks performed by accounting in an enterprise. in particular, with the help of accounting, it is possible to identify negative elements at an early stage and, with the help of correctly adopted management ones, to prevent them even at the stage of their inception, if it is necessary to mobilize unused resources. reporting also reflects complete and reliable information about the state of the enterprise. it can be used not only by employees of the organization, but also by investors, creditors, buyers, suppliers, and various bodies in order to obtain reliable information about the company in which investments or development investments will be made. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 68 www.americanjournal.org when organizing accounting and tax accounting, entrepreneurs are required to follow the adopted and current legislation. this will not only avoid difficulties when submitting documentation to inspection authorities, but will also additionally protect the entrepreneur from unintentional mistakes. at the moment, accounting and tax accounting at an enterprise is regulated by the federal law on accounting in the latest edition [5]. the next level document regulating accounting is standard recommendations for introducing accounting for small businesses. when choosing and building an accounting system for an enterprise, it is necessary to be guided by a rational approach to choice, adjusting the system to the organization, and not vice versa. in particular, accounting policies must be in accordance with internal policies, as well as the construction of the tax system. a small business entity can regulate the document flow of the enterprise. by adjusting it at various stages of development, as well as increasing the amount of information taken into account. separation of information on individual assets and liabilities can be done at the discretion of the entity itself. if they are not fundamental, they may not be separated into separate documents. each enterprise has the right not to publish an accounting policy, as well as a financial statement, if, in its opinion, these documents do not reflect the essence of financial activities, but only complement them in certain areas of regulation and inspection. one of the internal documents is the accounting policy of the organization; this document is mandatory both in the organization of a small and large enterprise. this document summarizes all the fundamental principles that are enshrined in the enterprise, which should not be used by employees who have access to reporting. this document is approved by the head of the organization. the accounting policy sets out the basic principles of accounting and tax accounting, among other things. it would be incorrect to include only accounting in the documents, since tax accounting is also the main stage. the accounting policy within the enterprise must regulate the completeness of reporting, as well as the completeness of reflection in the documentation. we touch upon not only the main elements in the legislation, but also those elements that are important in a particular enterprise. information must be available in a timely manner, this is also a basic accounting principle in order to avoid omissions, including missed opportunities. the information in documents must also contain hidden information, so it will be complete. data must be consistent and rational. the documents that are published together with the accounting policies also include a working chart of accounts this document is based on the adopted chart of accounts, but is regulated for a specific organization. the accounting policy also reflects the forms of documents accepted for mandatory execution and completion on the basis of the organization. they represent internal accounting documents. the package of documents must also contain an inventory plan, which is mandatory in the organization. methods for assessing types of property and liabilities. rules and technology for processing documents for provision and further storage. to summarize, we can say that the accounting policy in an organization is the so-called instructions for proper accounting, provision of information, and its documentation. each enterprise, on the basis of its organization, draws up and publishes an accounting policy within the company. when it is published, any employee of the company can read it, but for work it is usually accepted by the economic department and management for making management decisions. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 69 www.americanjournal.org the working chart of accounts for accounting in a small enterprise must contain synthetic and analytical accounts necessary for maintaining accounting records in accordance with the requirements of timeliness and completeness of accounting and financial reporting [3,4,5]. conclusions thus, the accounting policy for accounting reflects the methods of reflecting certain transactions in accounting, and subsequently, accounting profit is formed based on accounting data. organizations that have switched to a simplified taxation system are not required to maintain accounting records, with the exception of accounting for fixed assets and intangible assets. but in reality, this exemption from accounting is essentially formal. for example: 1. accounting must be kept in order to monitor the financial position of the company and in order to be able to evaluate the results of its activities. 2. in most cases, organizations using a simplified taxation system need to keep accounting records by virtue of legislation. references 1. chart of accounts for accounting of financial and economic activities of business entities and instructions for its use. order of the ministry of finance of the republic of uzbekistan dated december 27, 2001 no. 128 (registration no. 930-2 dated december 29, 2001) bulletin of normative acts, 2002, no. 20 2. barngolts s.b., melnik m.v. methodology of economic analysis of the activities of an economic entity. – m.: finance and statistics, 2015. p. 140-149. 3. vakhrushina m. a. management accounting. m.: omega-l, 2014. p. 278-280. 4. dontsova l. v., nikiforova n. a. comprehensive analysis of financial statements. m.: dis, 2015. p. 254-259. 5. ashurov z.a. issues of implementing the principles of csr, esg, sdg in the activities of enterprises with state participation. // state, municipal and corporate management: theory and best practices. proceedings of the eighth international scientific and practical conference (november 1011, 2023). – rostov-on-don: federal state budgetary educational institution of higher education rgups, 2023. p. 11-15. 6. valizhonov a.r. development of small business and private entrepreneurship in financial markets. // iqtisodiyotning raqamlashuvi sharoitide bank-moliya tizimini rivozhlantirish istiqbollari. republic of ilmiy-amalii conferencesi tesislar tўplami (april 12, 2023). – tashkent: “molia”, 2023. p. 447449. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 48 www.americanjournal.org improving government investment policy in the agricultural sector yangiboev sirojiddin juromurodovich researcher at tashkent state university of economics, 49 islam karimov avenue, tashkent, 100066, uzbekistan. a b s t r a c t k e y w o r d s the article explores the economic relationships that arise in the process of attracting and managing investments in the agricultural sector of the region’s economy. agriculture, investment activity, sectoral development, regional development, efficiency. introduction currently, much scientific research is underway in the world on the problems of increasing investment activity in agriculture in order to ensure the well-being of the population and food security. developing innovative approaches to increasing investment activity in the agricultural network, improving the style of using the agriculture orientation index (aoi) in evaluating the effectiveness of investment activity in the general national economy, evaluating the relative efficiency of agricultural-oriented investments, making and implementing decisions aimed at improving network investment activity are counted as crucial. the use of modern approaches to ensure the efficiency of improvement, evaluate the relative efficiency of investments in agriculture in regions is one of the most important aspects of scientific research in this area. there is a special emphasis on the development of the agrarian sector in ensuring socio-economic development and the well-being of the population in uzbekistan. the need for additional investment in the agricultural sector is also related to the transition to intensive and innovative types of governance within the framework of the next socio-economic model of the development of society, namely, the development strategy, and the solution of problems of expanding reproduction. this will create a framework for ensuring the quality of life, well-being of villagers, and food security of the regions. the need to improve the quality of human capital and provide for the maintenance of villagers is also among the most important tasks of investment policy. ii. literature review scientific, theoretical, and practical issues of improving the investment activities of the agricultural network and the efficiency of the use of investments in network development have been studied by a number of foreign and local economists. theoretical and applied research on this problem has included the works of f. kene, a. smith, j.m. keynes, u.petty, r.solou, r. harrod, e.kasla, m.bekker, a.nelson, u.william sharp, gordon american journal of business management, economics and banking volume 22 march 2024 p a g e | 49 www.americanjournal.org dj.aleksander, djeffryv.bailey, g.p.jenkins, l.j.gitman, m.d.jonk, s.fisher, r.dornbush, r.shmalenzi, i.n.buzdalov, v.e.afonina, k.r.mcconnell, scientific research by s.l.bryu, e.j.dolan, d.e.lindsey, v.maslova, m.osmolovskaya, i.n.voblaya, o.b.ugurchiev, d.o.ugurchiev, v.d.shapiro [1] and others. they highlighted the theory of investment, in particular, the scientific and conceptual basis for investment activity in agriculture. in regulating the regional development of the economy of uzbekistan correctly as well as implementing investment policies in various sectors of the economy effectively, scientists, like a.sh.bekmurodov, g.k.saidova, a.m.sodiqov, d.g. gozibekov, b.b.berkinov, l.f.amirov n.g. karimov, n.r.kuziyeva, sh.r.rajabbayev, b.sh.muminov, sh.i.mustafakulov, a.sabirov, s.a.abduraximova, b.b.valiyev, n.r.rajabov, m.a.raimjanova, m.x.eloev, s.a.nuriddinov, s.r.umarov, b.q.hoshimov, a.x.hudayberdiyev contributed appropriately [2]. these economists aimed at identifying investment attractiveness, analyzing its contents, evaluating the country's economic well-being and calculating the efficiency of the use of economic resources of regions, modeling socio-economic and regional-industrial complexes, developing a basis and methodology for regional development, activating investment in free economic zones and managing investment activities satisfactorily. despite the scope of scientific research carried out in this direction, it is necessary to deepen scientific research based on a systematic approach based on a deeper and more complete description of the nature of investments in the agrarian economy, their role, the identification of sources of formation, and the evaluation of their effectiveness. accordingly, the importance of developing innovative approaches to theoretical and methodological study of the investment process in agriculture, describing its forms, efficiency, and management mechanisms is increasing. iii. data and methodology investment policy is one of the most important areas of economic development and expansion of production in any state. reforms based on market relations in our country's national economy for more than a quarter of a century are aimed at implementing an active modernization policy, ensuring deep structural changes in national socio-economic networks and intensive economic growth in socioeconomic networks. these reforms form the fundamental basis for implementing an active investment policy. in agriculture, like all sectors, 2 approaches can be seen in clarifying the nature and importance of investments: the first is the cost element associated with the targeted formation of the main and circulating production funds. the second is the set of resources necessary for the reproduction of the main and circulating production funds. in the theory of investments, a number of scientific developments related to the effectiveness and necessity of regulation of state and regional investment activities are systematized. however, based on the requirements of today's transformational processes in the economy of uzbekistan, the formation of a system of effective indicators that represent the factors that positively influence the future trends of economic growth of the regional investment policy is gaining urgent importance. the financial and economic basis for the socio-economic development of the territories of the republic of uzbekistan is a regional investment policy that needs to be systematically carried out. the correct determination of strategic objectives of regional investment policy, the development of an algorithm for tasks aimed at the effective implementation of this goal, and the formation of an american journal of business management, economics and banking volume 22 march 2024 p a g e | 50 www.americanjournal.org optimal investment management system are key factors in the proper organization of regional socioeconomic development. it should be noted that while the effectiveness of managing regional investment activities is considered an important institutional basis for the effective implementation of regional investment policy, the main determinants of governance efficiency are evaluated through the effectiveness of investments across different criteria. the effectiveness of investments can be determined by the exact value equivalents or socio-economic self-sufficiency that society can see through the implementation of certain projects. table 1 indicators for assessing the effectiveness of investment projects1 criteria formula criteria dynamic performance indicators net current value (npv) as an increase in integral results from reduced integral expenses up to the initial year or a sum of current effects for the entire settlement period 𝑁𝑃𝑉 = ∑(𝑅𝑡 − 𝑍𝑡) ∙ 𝑇 𝑡=0 1 (1 + 𝑖)𝑡 = ∑ 𝐹𝐶𝐹𝑡 (1 − 𝐸)𝑡 𝑇 𝑡=0 here: results achieved at the rt-t computing stage (revenues); expenses at the zt-t computing stage (current minus depreciation and capital investment); duration of the t-billing period (t=ʃti); i-discount rate; the effect achieved in the t-phase of the fcft calculation effective if the project is npv>0 profitability indicator (pi) discounted positive cash flow ratio and discounted value of investments for the period 𝑃𝐼 = 1 𝐾 ∑ 𝑅𝑡 − 𝑍𝑐 𝑡 (1 + 𝑖)𝑡 𝑇 𝑡=0 the project is valid > pi1 internal level of yield (irr) discount rate, where npv=0, minimum acceptable level of investment for investor 𝐼𝑅𝑅 = ∑(𝑅𝑡 − 𝑍𝑐 𝑡) ∙ 𝑇 𝑡=0 1 (1 + 𝑖)𝑡− = ∑ 𝐾𝑡 1 (1 + 𝑖)𝑡 𝑇 𝑡=0 irr should have ≥ average income level in financial markets project repayment period (payback period) time from the start of the project, where capital investments are covered by general effects ∑ (𝑅𝑡 − 𝑍𝑐 𝑡) ∙ 𝑇 𝑡=0 1 (1 + 𝑖)𝑡 = ∑ 𝐾𝑡 1 (1 + 𝑖)𝑡 𝑇 𝑡=0 the state investment management system is based on interaction with participants in regional investment activities using management methods and tools. the system of regional investment, on the other hand, serves the real sector of the region's economy, filling it with its own resources. this, in turn, prohibits the system of evaluating the effectiveness of investments in regional development by evaluating the effectiveness of specific projects that are considered an element of the region's investment activities. world practice has developed a system of economic indicators for evaluating specific projects, and table 1 systematizes the most important of these indicators. government measures to encourage investment in agriculture are one of the most effective ways to increase investment in the network. the scope of the state investment support policy depends on the 1developed by the author based on an analysis of scientific literature. american journal of business management, economics and banking volume 22 march 2024 p a g e | 51 www.americanjournal.org relative advantages of each country inherent in the network and the opportunities to take advantage of agricultural potential. the relative advantages of agriculture are one of the networks with great opportunities to ensure food security in the united states, improve the income of the population, and ensure their employment, as well as improving the export potential of the national economy. this will require a favorable investment environment and an efficient risk management system. given the limited opportunities for extensive development, agricultural growth will in many ways depend on the growth of productivity supported by investments in physical, human and intellectual capital. iv. analysis and results due to the attractiveness of the investment environment and the uniqueness of investment insurance in the regions, it is necessary to constantly study its composition and characteristics to ensure the region's high investment position and the level of stability of this figure and to manage effectively. development of investment policy in the context of innovative development in the agricultural complex in the country trends in its development are a key factor in the economic development of the national economy and the region by increasing its competitiveness. because the agro-industrial complex first of all acquires an important social importance related to the production of goods that are of primary importance for human needs. secondly, it embodies the important factors of realizing the high potential of strengthening competitiveness in agriculture at the global level. thirdly, investments in the innovative development of these agribusiness networks provide high multiplicative efficiency in economic development through the growth rate in the network, which has a driver's description in the national economy. in the period of analysis, we will try to analyze investments in core capital per capita by calculating the regional index (iippa) in determining how many times higher or lower the regions are than the national average level. this index is determined by the following formula: 𝐼𝑖𝑝𝑝𝑎 = 𝐼𝑟𝑎 ∑ 𝑃𝑟 𝐼𝑡𝑎 ∑ 𝑃𝑡 (1) here: ira/∑pr– the per capita ratio of investments in the main capital of the agricultural network in regions; ita/∑pt is the national average of investments in core capital of the agricultural network. according to table 2, if we conditionally consider the average level of investment in core capital to be 1 index throughout the country, the above-average rate is strong concentration in the regions of bukhara (2.53), tashkent (2.19), djizzak (1.99) in 2020. table 2 regional average index for investments in core capital of agriculture per capita2 hududlarnomi 2016 2017 2018 2019 2020 total throughout the country 1,00 1,00 1,00 1,00 1,00 republic of karakalpakstan 2,37 1,30 1,69 1,97 1,80 andijan region 0,47 0,46 0,45 0,41 0,41 bukhara region 1,58 2,01 2,81 1,35 2,53 djizzak region 1,72 1,70 1,61 1,71 1,99 kashkadarya region 1,38 1,49 1,61 1,38 1,09 navoi region 0,37 0,97 0,88 1,90 0,86 2developed by the author based on data from the national statistics bureau of the republic of uzbekistan. american journal of business management, economics and banking volume 22 march 2024 p a g e | 52 www.americanjournal.org namangan region 1,60 1,67 2,60 1,79 1,74 samarkand region 0,64 0,62 1,53 1,50 1,46 surkhandarya region 0,54 0,55 0,64 0,76 0,78 syrdarya region 0,97 1,03 0,90 0,87 0,80 tashkent region 2,11 2,94 1,94 2,03 2,19 fergana region 1,51 1,46 1,37 1,40 1,40 khorezm region 0,62 0,55 0,55 0,44 1,47 tashkent city 0,21 0,39 0,29 0,32 0,36 variable width, r= xmaxxmin 2,16 2,55 2,52 1,71 2,17 from the point of view of variation, in 2017, a relatively strong difference between the share of investments in the agricultural sector per capita was observed. this difference was 2.17 in 2020. based on the above, the following conclusions were systematized as a result of the research: the change of the strong difference in the variation width according to the indicator of the ratio of investments in the fixed capital of the agricultural sector per capita in the cross-section of the regions depends mainly on the activity of local state authorities in attracting investments to the agricultural sector. first of all, it is desirable to further increase the activity of local state authorities in attracting investments in agriculture in each region, taking into account the existing potential (in agriculture) in the region. it is intended to attract investment in the implementation of modern projects based on a highly added value chain in improving the activity of local governments in attracting investment in agriculture. because the results of the analysis confirm that the population of the area is based on work as there is a strong gap between the added value created in the per capita agricultural network. one of the most widely used methodologies for evaluating the impact of the economy on intensive economic growth in improving investment activity in the agricultural sector in world practice is the agriculture orientation index (aoi). the agricultural orientation index (aoi) is defined as the ratio of the share of agriculture in government spending to the share of agriculture in jim3. this can be calculated by the following formula: 𝐴𝑂𝐼 = 𝐺𝑎 𝐺 ∗100 𝑉𝐴𝑎 𝐺𝐷𝑃 ∗100 (2) here: gathe share of expenses incurred in agriculture in all government expenses; total government spending at a certain period of g-; vaa gross added value in total agriculture at a certain time; gdp is gross domestic product at a certain time. in practice, this index is on the global scale, at the intersection of regions and the national economy. according to formula 1, if, in this case, gross domestic product in the economy represents a higher share of government spending than the share of added value in the agricultural sector. 𝐴𝑂𝐼 > 1 3 look at: united nations statistics division. international standard industrial classification rev. 4. new york. available at: https://unstats.un.org/unsd/cr/registry/isic-4.asp https://unstats.un.org/unsd/cr/registry/isic-4.asp american journal of business management, economics and banking volume 22 march 2024 p a g e | 53 www.americanjournal.org table 3 leading countries of central asia by agricultural orientation index (agriculture orientation index – aoi)4 № countries 2015 2016 2017 2018 2019 2020 1. kazakhstan 0,92 1,00 0,96 0,97 1,15 1,19 2. uzbekistan 0,17 0,14 0,17 0,19 0,18 0,21 3. kyrgyzstan 0,10 0,11 0,10 0,14 0,08 0,16 4. average 0,35 0,39 0,39 0,44 0,47 0,48 according to table 3, the agricultural orientation index in central asia between 2015 and 2020 was around 0.35-0.48. in particular, the highest rate was observed in kazakhstan, which was 1.19 in 2020. this situation is explained by the fact that an active public investment policy is being pursued in the development of the network in public spending. this indicator fluctuated around 0.17-0.21 in the analyzed period in the republic of uzbekistan, which confirms that a relatively low level of state policy of supporting the industry through investments is provided. however, in our opinion, agriculture is one of the strategic sectors of the economy of uzbekistan. this, in turn, confirms the need to turn the industry into one of the driver areas of economic development, thanks to the high labor productivity index, favorable climatic conditions based on the natural geographical location of the country. v. conclusions and suggestions as a result of this research aimed at attracting investment in the agricultural sector of the economy and improving their efficiency, the following conclusions were systematized: investments in modern conditions are not only one of the main conditions for the efficient functioning of the agrarian sector, but also a factor in improving its competitiveness and a vital prerequisite for transitioning to an innovative type of agricultural economy management. in terms of its economic nature, investments in the agricultural sector incorporate total material, money, and labor investments to restore, modernize, and expand reproduction of network manufacturing factors. investments in the agrarian sector of the economy have local and multiplicative efficiency, unlike other industries. the analysis has found that when it comes to local effectiveness of investments, their impact on economic, social and ecological efficiency in certain regions is considered. it is necessary to understand the efficiency of the national economy, macroand microeconomic level expressed in multiplier efficiency the growth of national income. investing in agriculture is the most important and most effective strategy for reducing poverty in rural areas by creating significant amounts of jobs in areas other than agriculture and agriculture, developing rural infrastructure. government measures to encourage investment in agriculture are one of the most effective ways to increase investment in the network. the scope of the policy of state investment support depends on the relative advantages of each country inherent in the network and the possibilities of its use of agricultural potential. 4qarang: the food and agriculture organization (fao). https://www.fao.org/about/en/ american journal of business management, economics and banking volume 22 march 2024 p a g e | 54 www.americanjournal.org given the limited opportunities for extensive development, agricultural growth will in many ways depend on the growth of productivity supported by investments in physical, human and intellectual capital. the development of investment attractiveness of agriculture is influenced by such factors as the implementation of the state protectionist policy in the national market for agricultural products, financial support policies, financing the development of engineering and social infrastructure in rural areas, and addressing the monopoly environment. it is intended to provide equal rights and opportunities for local and foreign investors to address the reasons that hinder investment in the agricultural sector of the economy, and to increase investments in government budgets (subsidy-shaped compensation) based on the development of borrowing. the state's optimal economic policy in agriculture should help minimize imbalances in existing interregional economic development. therefore, the important circumstances in the field of investment should be based on the work: the harmony of network and territorial approaches to the distribution of budget funds, the constant monitoring of the financial situation of the regions to determine the real possibilities of self-financing, and the implementation of measures to allocate audit funds. in the direction of creating a favorable agribusiness environment and added value chain, the terms of contracts for the supply of raw cotton grown by farms for cotton-textile clusters based on the analysis of the market situation and the forecast calculation of the costs of carrying out agrotechnical activities in determining, it is necessary to go to the market principles of cotton raw material price formation, purchase and sale by setting the minimum prices. in order to improve the credit mechanism for increasing investment activity, agricultural business entities prohibit the improvement of the privileged lending and irrigation mechanism in accordance with the strategic priorities and needs of the agricultural and food network. it is intended to increase their investment attractiveness by introducing digital technologies based on block chain technology for the activities of agricultural enterprises. references 1. блауг м. кенэ, франсуа // 100 великих экономистов до кейнса = great economists before keynes: an introduction to the lives & works of one hundred great economists of the past. — спб.: экономикус, 2008.; 2. смит а. исследование о природе и причинах богатства народов. — м.: эксмо, 2007.; общая теория занятости, процента и денег / дж. м. кейнс. – м. : прогресс, 1978.; 3. solow r. m. technical change and the aggregate production function // the review of economics and statistics (англ.)русск.. — 1957. — август (vol. 39, № 3).; 4. инвестиции / у. шарп, г. александр, дж. бели. – м.: инфра-м, 2001.; 5. cost benefit analysis of investment decisions / g. p. jenkins, a. c. harberger. – canada: manuel. queens university, 2001.; 6. методологические аспекты анализа понятия «инвестиции» / и. н. буздалов, в. е. афонина // известия пгпу им. в.г. белинского. – 2012.; 7. инвестиции в апк в условиях импортозамещения / в. маслова // апк: экономика, управление. – 2014.; 8. м. осмоловская инвестиционный процесс в апк краснодарского края: состояние и перспективы / м. осмоловская // апк: экономика, управление. – 2015. – № 3.; american journal of business management, economics and banking volume 22 march 2024 p a g e | 55 www.americanjournal.org 9. d.g‘. g‘ozibekov investitsiyalarni moliyalashtirish muammolari: iqtisod fanlari doktori ilmiy darajasini olish uchun yozilgan dissertatsiya. – t., 2002.; 10. б.б.беркинов, л.ф.амиров методические аспекты анализа и оценка эффективности финансово-экономических показателей отраслей аграрного сектора узбекистана //journal of economics. – 2022. – т. 12. – №. 2.; 11. n.g.karimov iqtisodiy integratsiyalashuv sharoitida investitsiyalarni moliyalashtirishning bozor mexanizmlarini joriy etish muammolari: 08.00.07 – moliya, pul muomalasi va kredit. iqtisod fanlari doktori ilmiy darajasini olish uchun yozilgan dissertatsiya. – t., 2007.; 12. b.sh.muminov o‘zbekiston iqtisodiyotida markazlashgan investitsiyalarning samaradorligini oshirish yo‘llari. iqtisod fanlari nomzodi dissertatsiyasi. – t., 2012.; 13. sh.e.mustafakulov o‘zbekistonda investitsion muhit jozibadorligini oshirishning ilmiyuslubiy asoslarini takomillashtirish. iqtisodiyot fanlari doktori (dsc) dissertatsiyasi avtoreferati. – t.: o‘z.r.bank moliya akademiyasi. 2017 y. 14. s.r. umarov qishloq xo‘jaligiga investitsiyalarni jalb etish va ulardan samarali foydalanish. iqtisod fanlari nomzodi ilmiy darajasini olish uchun yozilgan dissertatsiyasi. – t., 2008. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 82 www.americanjournal.org a study of the correlation between accounting disclosure and financial reporting quality in banks registered in the iraqi stock market abboud jadaan hamad iraq, salahuddin governorate office alhmadabwd390@gmail.com prof. dr. emna boumediene manouba university, tunisia emna_doumediene@yahoo.fr a b s t r a c t k e y w o r d s the research aims to identify both accounting disclosure and financial reporting quality (frq). it also aims to measure the role of accounting disclosure in enhancing the frq of banks listed in the iraqi stock market (ism). the study was conducted on al-iraq commercial bank, gulf commercial bank, and ashur international bank. a questionnaire was received from sample of 177 individuals. spss v24 and amos v24 were used for data analysis, including measures such as mean, standard deviation, coefficient of variation, frequencies, and percentages. the study found that disclosing accounting information helps achieve more transparency, creating a positive perception among stakeholders towards the banks and reducing their resistance to changes initiated by bank management. providing appropriate information to stakeholders clarifies the bank's policies, plans, and activities, allowing them to evaluate and contribute to their improvement for the benefit of all stakeholders. based on the findings, the researchers recommend the issuance of a direct standard by the iraqi accounting and auditing standards board for disclosing non-routine profits and losses. accounting information, disclosure, financial reports, financial statements, financial reporting quality. introduction iraqi banks are facing uncertainty due to financial crises. this reduces investors' confidence in the distribution of future cash flows of economic units and complicates their evaluation due to daily challenges and the lack of useful information for decision-making. accounting experts unanimously agree on the necessity of sufficient disclosure of information, which requires designing and preparing financial reports that reflect the economic events that affected banks american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 83 www.americanjournal.org during the research period. these financial reports should contain sufficient data and information that are useful, beneficial, and not misleading to ordinary investors or financial statement users in general. furthermore, these financial statements should include all important information that reflects the economic unit's real situation under different environmental conditions and alternatives. it is known that accounting disclosure of information is no longer sufficient to increase the quality of financial reporting (qfr), especially with the widening information gap between investors, company management, or between investors themselves. there is a need to support market efficiency and ensure balanced transactions while reducing profit management operations that will reflect positively on improving banks' performance. it is also known that reducing information asymmetry can be achieved through disclosing high-quality accounting profits, which supports the bank unit's value in the financial market and reduces investors' uncertainty in the distribution and evaluation of future cash flows of economic units . research problem iraqi banks within the iraq stock exchange (henceforth ise) are affected by economic events regarding accounting disclosures. most economic units try to keep up with developments and updates in the global arena, as improving the qfr is closely related to the activities that the economic unit practices to provide credible accounting information for the benefiting parties. on the other hand, in light of the central bank of iraq's directive to apply international financial reporting standards in banks and companies registered and listed on the ise, according to its book number 12/9 in 2016. research significant the research holds significance in its focus on banks listed on the iraq stock exchange, which serves as the platform for studying their operations. it aims to investigate how accounting information disclosure contributes to improving the qfr for these banks. additionally, the research seeks to increase awareness among both iraqi and non-iraqi investors regarding investment prospects in the market. by collecting, analyzing, and disseminating essential statistics and information, this study aims to provide guidance to investors and support the achievement of the objectives outlined in the system. this study revolves around answering this main question: 1. can effective financial disclosure improve the transparency of financial reporting and mitigate profit manipulation practices among banks listed on the iraq stock exchange? this main question leads to a number of sub-questions that can be clarified as follows: 1. does accounting disclosure play a significant role in enhancing the qfr for banks listed on the ise? 2. does fair accounting disclosure reduce financial reporting practices for banks listed on the ise? research objectives the research aims to achieve the following objectives: 1. to theoretically understand and clarify the meanings of both accounting disclosure and frq in a realistic and non-misleading manner. 2. to identify the role of accounting disclosure in enhancing the frq for banks listed on the ise, which is the focus of the study. 3. to demonstrate the nature of the relationship and impact between accounting disclosure and frq, and the extent to which this relationship can limit practices within the studied banks. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 84 www.americanjournal.org hypothetical framework the literature review of previous studies on accounting disclosure and frq, as well as the research problem, its significance, and objectives, have informed the development of a hypothetical framework for this study. this framework serves as a fundamental guide to understanding the relationships and impact between the main variables and their sub-dimensions. the current framework consists of three main variables, as shown in figure 1. figure 1. hypothetical framework research hypotheses the current study's hypotheses were formulated based on the research problem, objectives, and hypothetical plan. they aim to answer the research questions, and statistical testing will determine the quality and level of the relationship between the research variables. the research hypotheses are: .الفرضية الرئيسية االولى : توجد عالقة ارتباط ذات داللة معنوية بين االفصاح المحاسبي وجودة االبالغ المالي )الفرضيتان األولى .الفرضية الرئيسة الثانية : توجد عالقة ارتباط ذات داللة معنوية بين جودة االبالغ المالي االفصاح المحاسبيي : والثانية هما بمعنى واحد، فقد حذفت الثانية( .الفرضية الرئيسة الثالثة : يوجد تأثير ذو داللة معنوية لإلفصاح المحاسبي في جودة االبالغ المالي الفرضية الرئيسة الرابعة : يوجد تأثير ذو داللة معنوية لإلفصاح المحاسبي في إدارة األرباح )الفرضية الرابعة ال توجد لها بيانات في البحث وال نتائج( 1. there is a significant correlation between accounting disclosure and frq . 2. accounting disclosure has a significant impact on financial reporting quality. literature review accounting disclosure the importance of accounting disclosure has grown alongside advancements in technology and scientific progress, particularly in the delivery of accounting information through financial reports. increased disclosure of accounting information has a positive impact on confidence in iraqi banks listed on the ise, as it allows for a better understanding of their past and present performance. it also facilitates financial reporting quality accounting disclosure american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 85 www.americanjournal.org comparisons between different economic units and aids in predicting future outcomes. accounting disclosure has garnered significant attention from professional organizations, associations, legislative bodies, securities market regulators, regulatory authorities, and financial data analysis entities. these entities aim to provide accurate and timely information in financial reports, ensuring transparency and assisting users in making informed decisions and allocating their resources effectively. ultimately, this focus on accounting disclosure contributes to improving the quality of financial reporting and helps organizations achieve their goals. in order to clarify the contents of accounting disclosure, the current study will address the following: the intellectual framework of accounting disclosure the disclosure of accounting information plays a crucial role in assisting various users, such as investors, shareholders, and governments, in making informed decisions and planning for the future. it provides valuable insights into a company's interactions with the community, its employees, and its commitment to environmental and ethical concerns. by disclosing this information, companies enhance their reputation and demonstrate their accountability to investors by showcasing their influence on decision-making processes (al-amosh & mansor, 2018). the amount of accounting information disclosed by banks varies among different banks based on the prevailing regulations in the iraqi banking law, which is listed within the ise. it depends on the level of economic development of the country in which they operate, the strength of the legislations reported, professional accounting practices, and the presence of advanced financial markets that allow banks to engage in continuous financial practices (haddad et al., 2017). the financial accounting standards board (fasb) identifies four main purposes of disclosure, as stated by brody and marrakchi (2019): 1. describing significant paragraphs and providing appropriate measurement for them . 2. describing non-significant paragraphs and providing appropriate measurement for them . 3. providing information that helps users of financial reports in assessing the risks and probabilities associated with significant and non-significant paragraphs (al-amin, 2015). 4. providing important information when information is scarce (alexander et al., 2009). the researchers perceive accounting disclosure as the process of presenting accounting and financial information through financial statements, whether quantitative or qualitative, in the financial statements themselves, as well as in the footnotes, disclosures, and supplementary schedules, at the appropriate time. this ensures that the financial statements are not misleading and are suitable for external users to make appropriate decisions based on information characterized by credibility, relevance, clarity, and without having access to the books and records of the entity. the importance of accounting disclosure the significance of accounting disclosure became evident with the rise of financial institutions and its incorporation into corporate laws in many countries, including iraq. it is now mandatory for banks to publish financial statements before their annual board of directors meeting, as required by these laws. these regulations also outline the minimum amount of information that must be included in these published financial statements, often providing specific models for presentation. external parties often lack the authority to compel economic entities, including banks, to provide them with the necessary data to make informed decisions (hussein & al-tamimi, 2016). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 86 www.americanjournal.org 1. full disclosure: this type of disclosure pertains to the extent to which financial reports provide a thorough and complete overview of relevant information that can greatly impact the reader. it emphasizes the significance of providing all relevant information as a primary source for decisionmaking. this disclosure is not limited to facts up until the end of the accounting period, but also extends to any subsequent events occurring after the financial statements' date that can significantly influence users of those financial statements. however, it may not always be feasible to apply this type of disclosure in real-world scenarios (kashkou, 2016). 2. sufficiency of disclosure: refers to determining the necessary amount of accounting information to be included in the financial statements. the specific definition of what constitutes the minimum requirement may vary depending on different needs and interests. this is because adequate disclosure directly affects decision-making and is based on the recipient's experience and understanding (abdul latif, 2013). 3. fair disclosure: this refers to presenting information in a manner that provides equal access to all recipients, without favoring any specific group. the goal is to ensure a fair comprehension of the financial statements by all parties who have a reasonable capacity to understand the content. 4. appropriate disclosure is concerned with the needs of data users, the conditions of the entity, and the nature of its activities. it is not only important to disclose financial information, but it is even more important that it is valuable and beneficial for the decisions of investors and creditors and is proportional to the entity's activities and internal conditions (jaafar, 2005). quality of accounting information financial reporting involves the presentation of financial statements and the completion of audits to disclose the financial condition of an organization. the main purpose of financial reporting is to provide crucial information about a company's performance and business activities to various stakeholders such as management, investors, and the public. this information is vital for making informed decisions and understanding the financial health of an entity. in summary, financial reporting plays a significant role in offering essential information to interested parties. therefore, this section aims to clarify the importance of financial reporting and its role in providing necessary information. background of frq accounting science has its roots in ancient times and was a defining characteristic of ancient civilizations. initially, it served as a simple tool for record-keeping, but over time, it evolved to meet the growing demands placed on it. today, accounting plays a vital role in providing crucial information for making important economic and social decisions. as societies have developed and needs have grown, accounting goals and methods have also evolved accordingly (jasim, 2022). everything has a purpose; when that purpose is achieved, it attains quality. applying this to financial reports, when the objective of their preparation is accomplished, they are considered to have quality. despite the numerous research studies that have addressed the concept of frq and its broad scope, there is still no agreed-upon definition for frq. the definitions referred to by researchers and organizations regarding frq vary and differ in terms of defining and identifying its various dimensions, american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 87 www.americanjournal.org due to the diversity of approaches to quality. therefore, it has been difficult to find a simple definition that fully describes quality and provides a comprehensive understanding of it (gajevszky, 2015). it can be said that the concept of the frq is linked to the extent to which the goal of preparing financial reports is achieved. determining the goal of financial reports also requires determining who the users of financial reports are and what their needs are. thus, it can be said that the concept of frq means that the financial reports achieve the goal of their preparation (afiah & rahmatika, 2014). to finish up, we believe that financial reporting involves the preparation and presentation of financial statements to investors and stakeholders. its purpose is to provide a concise and accurate depiction of an entity's financial position and performance. the information shared should be reliable, transparent, and easily understood, enabling informed decision-making by those who rely on the financial statements.. the goal of financial reporting the main goal of financial reporting is to provide useful information to decision-makers, whether economic or commercial, about stakeholders. therefore, financial statements should have quality that reflects the quality of financial reporting (haslam & chow, 2012). the main goals are: 1. offering financial information with the key attributes of relevance and usefulness, enabling investors, current creditors, and other users to make informed decisions. 2. assisting financial statement users in assessing the expected cash inflows from dividends, interest, and other relevant sources at the appropriate time. 3. effectively representing the economic resources, obligations, and impacts of business activities, events, and conditions of the entity in question (terzungwe, 2013). models and approaches used in measuring frq the field of frq encompasses the concept of the quality of accounting information included in financial statements. there is an agreement on some key characteristics of this information. these characteristics stem from the usefulness of accounting information in decision-making, which depends on the reliability of the information on one hand, the relevance of that information on the other hand, and the comparability of that information on another hand. these three factors together contribute to improving the usefulness of accounting information for decision-making. the relevance of information depends on its representation of the truth of events and facts, the neutrality of that information, and its verifiability. as for the reliability of information, it depends on the timing of the information, its predictive value, and its feedback (jasim, 2022). the frq can be evaluated using three approaches: the quality of accounting information, the quality of accounting standards, and the quality of accounting profits. the international accounting standards (ias) state that analyzing accounting information with qualitative characteristics can enhance the quality of the auditor's report and ultimately improve the frq. this process aims to achieve the goal of generating reliable and useful information for decision-making (achim & chis 2014). in order for information to possess qualitative characteristics, it must be presented in a manner that is relevant, reliable, comparable, and understandable. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 88 www.americanjournal.org the quality of accounting standards it is closely related to the production of information that is useful in the decision-making process, in addition to the comparability of that information from year to year. it also includes the ability of that information to be applied to accounting standards. the securities and exchange commission (sec) has identified a set of conditions that must be met in accounting standards in order for them to be considered of high quality. these standards can be expressed in the coming sections (abrigo & ferrer, 201): the quality of accounting profits the statement of financial accounting concept stipulates that accounting reports must contain information that shows the financial performance of the economic unit during the period of time, and by referring to the list of accounting concepts, it determines the quality of profits by providing high profits. quality that reflects the financial performance of the economic unit (scott, 1997). various researchers have attempted to define the concept of quality of accounting profits, and their perspectives differ depending on the intended purpose of the definition. makto (2019) views it as the ability of disclosed profits to predict future profits for the economic entity. this means that higher-quality profits are more likely to generate future profits for the entity. previous studies accounting disclosure has been studies in some studies. honggowati et al. (2017) examined the impact of corporate governance on the disclosure of strategic management accounting. the study analyzed 497 manufacturing companies in indonesia during the period 2011-2015 using a descriptive and analytical approach. the study found that the size of the board of directors has a significant positive effect on the level of disclosure of strategic management accounting for manufacturing companies in indonesia. furthermore, de souza et al. (2019) explored the connection between the readability of linguistic complexities in narrative accounting disclosures and financial performance. the researchers observed 1,643 company-year observations in brazil, along with an additional sample of 1,297 company-years, spanning from 2010 to 2016. they used financial statements and various indicators, including return on assets, earnings per share, and a binary variable indicating stock-based results' direction. the findings indicate that companies with lower profits tend to present less transparent narrative accounting disclosures. the quality of financial reporting has been studies in some studies. in their study, mbobo and ekpo (2016) sought to explore how nigerian accountants perceive the quality of financial reporting and the utilization of qualitative characteristics in measuring this quality, as defined by the international accounting standards board. the researchers conducted a survey among 120 professional accountants in three cities in nigeria, utilizing a descriptive and analytical approach along with a questionnaire. the findings of the study indicated that while the implementation of international standards for financial reporting has had a substantial impact on the quality of financial reporting, there remains room for improvement in effectively applying qualitative characteristics to further enhance this quality . moreover, kaawaase et al. (2021) explored the relationship between corporate governance characteristics (board experience, board independence, and board performance), internal audit quality, and frq using evidence from financial institutions . the study findings suggest that there is a significant positive relationship between board expertise and board role performance with frq. additionally, american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 89 www.americanjournal.org internal audit quality is also significantly associated with financial reporting quality. however, board independence does not predict frq significantly . methods research design research design is a systematic and scientific approach that allows researchers to accurately describe and study a subject. it encompasses the researcher's understanding of the problem and their efforts to find solutions. the research design helps translate theoretical concepts into practical applications, enabling the collection, analysis, and interpretation of data. it serves as a framework for conducting research and offers a systematic approach to achieving research objectives. the study encompass the banks listed on the ise; they include baghdad bank, gulf commercial bank, ashur international bank, and iraqi investment bank. sample the researcher distributed 200 questionnaires with managers, assistant managers, and external auditors working within al-iraq commercial bank, gulf commercial bank, and ashur international bank. questionnaires were received from the sample. a total of 23 valid questionnaires were retrieved for statistical analysis out of the received. instrument the researchers used the likert scale to measure the level of response, ranging from 1 to 5, with five categories to assess the degree of response as shown in table 1. the questionnaires were administrated from march 1, 2020, to january 15, 2023, during which the theoretical and practical aspects of the study, including analysis of financial statements and cash flows published by the banks. table 1. likert scale used in the study strongly agree agree not sure disagree strongly disagree 5 4 3 2 1 standards and stages of applying qfr the decision-making process must be based on a set of information that largely involves quality. therefore, the goal of quality that is intended to be achieved must also be based on a set of standards, which are to herath and albarqi (2017) as follows: the consistency between the components of the measures the cronbach alpha test is utilized to assess the reliability of respondents' responses to the scale questions. by calculating the cronbach alpha coefficient, as shown in table 2, we were able to ensure consistency between the different components of the scale at the dimension level and all variables. the correlation coefficient values (cronbach alpha) exceeded the minimum acceptable threshold of 0.70, indicating that there is consistency between the scale components and desired stability when the test is repeated. table 2 presents the results of the consistency analysis among the different components of the scale. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 90 www.americanjournal.org table 2. consistency between the scale components results description the research variables this study aims to examine how accounting disclosure influences and its impact on the frq. the research will focus on three banks listed on the ise and will primarily utilize the arithmetic mean as a measure of central tendency, which is widely recognized and significant in various measurements. the arithmetic mean represents the central value around which all the different values of a variable are centered. the standard deviation is a crucial statistical measure that indicates the dispersion of the data. the coefficient of variation is used to compare the dispersion between two groups, allowing for a judgment on the dispersion based on the calculated values of dispersion measures. a lower coefficient of variation suggests less dispersion in the sample research answers. based on these results, the importance can be ranked and the level of response to the opinions of the sample can be determined. accounting disclosure table 3. sample’s responses to the accounting disclosure variable cronbach's alpha coefficient scale 0.855 accounting disclosure 0.832 accounting reporting quality response level relative importance coefficient of variation standard deviation mean score statements very good 84.4% 0.17 0.71 4.22 1. employees are interested in reviewing the information contained in banks’ financial statements. good 77.4% 0.26 1.01 3.87 2. the bank displays to employees their financial reports, such as salaries, bonuses, and benefits, through its financial statements. very good 85.6% 0.16 0.68 4.28 3. the bank’s management clarifies the information included in its financial statements to employees. very good 86.4% 0.16 0.69 4.32 4. employees can directly view the financial statements. very good 85.2% 0.18 0.76 4.26 5. employees are aware of the information contained in the statements issued by the bank. good 83.8% 0.19 0.81 4.19 6. the bank’s financial statements reflect the importance of employees to the same extent as they reflect to the rest of the bank’s stakeholders. very good 87.0% 0.16 0.71 4.35 7. the bank must disclose the risks and financial crises to which it is likely to be exposed. good 83.8% 0.17 0.71 4.19 8. employees believe that the financial information disclosed by the bank in its financial statements is not directed to them. good 81.2% 0.20 0.80 4.06 9. the financial information disclosed by the bank is considered insufficient for the use of employees. good 82.0% 0.20 0.83 4.10 10. accounting disclosure makes it easier for beneficiaries to collect data and information for the economic unit, process it, and compare it with other economic units. good 83.7% 0.19 0.77 4.18 total american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 91 www.americanjournal.org information reporting quality table 4. sample’s responses to the information reporting quality variable testing correlations between research variables this section focuses on testing the relationship between independent variables, i.e., accounting disclosure and the quality of financial reporting, and the dependent variable, which is profit management. the pearson correlation coefficient will be used to determine the strength and direction of this relationship. the correlation is strong positive when it is (+0.3 to +0.7), and acceptable positive when it is (1 to +0.3). while the correlation is strong negative when it is (-0.3 to -0.7), and weak negative when it is (-0.3 to 0). however, if the correlation coefficient is (+1), this indicates a complete positive correlation, and (-1) indicates a negative correlation. complete 0indicates that there is no correlation, as the results of the correlation analysis were as shown in table 10. testing h1: there is a significant correlation between accounting disclosure and financial reporting quality. the correlation coefficient between accounting disclosure and the quality of financial reporting in table 5 reached (0.685) at the significance level (.000), this affirms the existence of a significant correlation between accounting disclosure and the frq. accordingly the first main hypothesis is accepted. response level relative importance coefficient of variation standard deviation mean score statements good 84.0% 0.20 0.82 4.20 1. the statements presented in the financial reports are public and can be viewed by everyone. good 83.0% 0.21 0.89 4.15 2. the information provided by financial reports meets a large part of the needs of beneficiary parties. good 80.4% 0.19 0.76 4.02 3. there are financial reporting statements that help investors predict the results of the bank’s activity for future periods. good 81.2% 0.18 0.75 4.06 4. the information contained in financial reports is reliable and dependable. very good 85.2% 0.17 0.72 4.26 5. bodies preparing financial reports take the changing and emerging needs of investors into account. good 83.8% 0.17 0.73 4.19 6. investors rely on auditors’ reports in their assessment of the quality of financial reporting. good 80.0% 0.21 0.85 4.00 7. the information contained in the financial reports is sufficient for the beneficiaries to make any decision related to the bank. good 82.0% 0.20 0.80 4.10 8. financial reports are submitted to all beneficiaries in the same form and content. very good 85.8% 0.19 0.80 4.29 9. the financial reporting process is affected by the environmental, legal and legislative variables surrounding banks. good 84.6% 0.20 0.84 4.23 10. financial reports meet the needs of their users and guide decisions. good 83.0% 0.19 0.80 4.15 total american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 92 www.americanjournal.org table 5. correlation between accounting disclosure and frq management correlations accounting disclosure financial reporting quality accounting disclosure pearson correlation 1 .685** sig. (2-tailed) .000 n 177 177 financial reporting quality pearson correlation .685** 1 sig. (2-tailed) .000 n 177 177 testing the influence relationships between study variables testing h2: accounting disclosure has a significant impact on financial reporting quality this section tests the influence relationships of the independent variables (accounting disclosure on the dependent variable i.e., quality of financial reporting. in keeping with the nature of the study and its variables, non-parametric statistical tests were used to test the validity of the second hypotheses. the main principle using the simple regression coefficient and through the figure 2. figure 2. the effect of accounting disclosure on the quality of financial reporting in figure 2, the standard estimates of the simple regression model are presented. the independent variable is accounting disclosure (x_1), and the dependent variable is financial reporting quality (x_2). the estimated value of beta is 0.69, indicating that accounting disclosure has a significant and positive impact on frq. furthermore, the r^2 value in figure 2 is 0.47, meaning that 47% of the variation in financial reporting quality can be explained by the effect of accounting disclosure. the remaining 53% is attributable to external factors and other causes. thus, the second hypothesis is proved. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 93 www.americanjournal.org conclusion 1. disclosing accounting information helps create a positive feeling among employees about the banks in which they work, just like other stakeholders, to achieve more democratic decision-making in them. 2. commitment to audit quality, reliance on international accounting standards and generally accepted principles, limits the use of profits management in financial statements. 3. 3. there is a reciprocal relationship between accounting disclosure and the frq, and using profits management, the audit process is broader and more comprehensive. 4. compliance with laws and instructions leads to not using misleading information for users. 5. there is a significant correlation and influence between the frq and the reduction of accounting disclosure and its impact on the decisions of financial statement users. 6. there is a significant correlation and influence between accounting disclosure and the frq. recommendations 1. the iraqi accounting and regulatory standards board should issue a direct standard for disclosing unusual profits and losses and adhering to the rules of accounting conservatism. 2. the study proved that the information provided by accounting disclosure meets a large part of the needs of the beneficiary parties. 3. a set of guidelines and instructions should be provided for auditors to use for the purpose of discovering or reducing the phenomenon of profits management. 4. not focusing solely on directing the financial statements to specific parties, but rather the necessity of directing them to all stakeholders whose decision-making activities the affect banks to facilitate the process of self-evaluating their activity. 5. enhancing the effectiveness and role of the frq and the continuity of its work by the relevant authorities in a better manner. 6. the ise must expand the disclosure rules in a way that is consistent with the conditions found in the current study. references 1. abdul latif, s. 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(2022). a proposed model for accounting for assets in petroleum license contracts according to international financial reporting standards and its impact on financial reporting quality: a field study in midland oil company (unpublished master's thesis). university of iraq. 17. kaawaase, t. k., nairuba, c., akankunda, b., & bananuka, j. (2021). corporate governance, internal audit quality and financial reporting quality of financial institutions. asian journal of accounting research, 6(3), 348-366. 18. kashkou, s. m. (2016). the extent of disclosure of intangible assets in the financial reports of companies listed on the palestine stock exchange (unpublished master's thesis). islamic university of gaza. 19. makto, a. j. (2019). the impact of adopting ifrs 15 on financial reporting quality in iraqi economic units (unpublished master's thesis). university of baghdad, 20. mbobo, m. e., & ekpo, n. b. (2016). operationalising the qualitative characteristics of financial reporting. international journal of finance and accounting, 5(4), 184-192. 21. scott, w. r. (1997). financial accounting theory. prentice hall. 22. terzungwe, t. d. (2013 october). technological innovation for sustainable development in a developing economy. in lead paper presented at national conference on technological innovation for sustainable development at ses, federal polytechnic, nasarawa, nigeria. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 23 www.americanjournal.org econometric analysis of attracting investments to special economic zones in uzbekistan primov sirojiddin furqat ugli tashkent institute of finance a b s t r a c t k e y w o r d s an econometric analysis of attracting investments to special economic zones is presented in the article. also, an econometric study was carried out to sort out the factors and explain them, to build an econometric model that shows the level of interdependence and the level of influence of the factors affecting the volume of investment in special economic zones. special economic zone, investment, gdp, tax benefits, customs benefits. the improvement and development of any activity is influenced by various indirect and direct factors. in particular, many social, economic, financial, legal, administrative and other changes have a positive or negative effect on the flow of investments into special economic zones and their types were considered in the above chapters and paragraphs of the research. it has been proven in the world experience that special economic zones contribute to the economic development of regions, create jobs, increase the volume of production, and make a significant contribution to the economic development of the country. taking this into account, the government has been taking measures to establish special economic zones in uzbekistan in recent years, to support them through the fiscal policy of the state and to stimulate the activities of such areas. on the basis of such measures, of course, by giving special tax benefits, by applying special procedures of production, by attracting more investment to the economy and production activities, and by effectively directing idle funds to development revitalization lies. above, consideration was given to attracting investment to special economic zones in uzbekistan, the facilities and opportunities created in this regard were changed, and theoretical evaluations and comments were given. in this part of the research, we will study the econometric assessment and forecasting of the prospects of the positive or negative impact of tax incentives and other factors on the volume of investments in special economic zones. in this regard, we will carry out an econometric study to sort out the factors and explain them, to build an econometric model that shows the degree of interdependence and the degree of influence of the factors affecting the volume of investment in special economic zones. we evaluate the degree of dependence and the reliability of the econometric model through statistical tests and make forecasts based on the model. analysis and discussion of results we perform and analyze econometric modeling using the method of least squares. the abstract view of the model is as follows: y= k1x1+ k2x2+…+ knxn+b+e (1) american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 24 www.americanjournal.org b – initial value of the model; k1, k2,… kn – coefficients in front of independent variables; x1, x2,… xn – independent variables; y – involuntary variable; e – uncertainty part of the modeling from the point of view that econometric analyzes are mainly carried out on the basis of long-term time series data or comprehensive observations, in the research we mainly select a statistical indicator of several factors affecting the volume of investment in special economic zones. we obtain the indicators of tax and customs benefits from the point of view of the direct impact of the tax benefits on the flow of investments into special economic zones. we also include the indicator of the volume of money in circulation as an influencing element for study from the perspective of direct participation of the public and business entities as investors. the more tax and customs benefits are given, the more postitive effect it will indirectly have on the growth of profits from direct activities, based on which the interest of investors in this area will increase and they can make more investments. secondly, the larger the mass of money in circulation, the more its part can be directed to investment. these mentioned factors may have an indirect effect on the volume of investment in special economic zones. first, we describe descriptive statistics of the data of these indicators for the years 2008-2021 using the data of appendix 1 in table 1 below. table 1 descriptive statistics of investments attracted to special economic zones and factors affecting their volume change in 2008-2021, the volume of investment in the special economic zones of uzbekistan (i) is listed in million us dollars, its average is 215.66 , the minimum is 15.72 (2012), the maximum is 791.34 (2018), the standard deviation between the indicators was equal to 283.58. in our country, it is planned to provide tax incentives (si) for enterprises opened in special economic zones, their amounts are listed in billion soums, the average annual amount of tax incentives is equal to 103.89, in 2020, the pandemic and other the amount of tax credits used under the influence of factors is equal to 0, the maximum is equal to 563.2, the standard deviation between the amounts of tax credits is equal to 138.87. the law also provides for the use of special customs privileges (bi) for special economic zones, the amounts of which are presented in billion soums in our analysis, in particular, the average of customs privileges is indicator average median minimum maximum i 215,66 57,840 15,720 791,34 si 103,89 78,850 0,0000 563,20 bi 169,84 81,000 5,9000 884,40 m2 38188,0 30175,0 3093,1 92264,5 indicator standard deviation variation asymmetry excess i 283,58 1,3150 1,1742 -0,27097 si 138,87 1,3367 2,8069 6,9735 bi 279,21 1,6439 2,0191 2,2421 m2 31538,0 0,82587 0,56762 -1,0583 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 25 www.americanjournal.org 169.84, the minimum is 5.9 (2008 -year), the maximum is 884.4 (2018), the standard deviation between the amounts is 279.21. the amount of money in circulation (m2) is presented in the analysis in billion soums, its average amount is 38188, the minimum is 3093.1 (2008), the maximum is 92264.5 (2021), the standard deviation between the amounts is 31538. the calculation and study of correlation coefficients, which show the degree of the connection between changes in factor sizes, is one of the earliest and most crucial steps in econometric analysis. it is known that the correlation coefficient evaluates the strength of the indirect relationship, and this relationship is in the range (-1;1). if the correlation coefficient between two factors is in the range (0;1), then there is a positive relationship between the factor quantities, if it is in the range (-1;0), then there is an inverse relationship.2 the closer this indicator is to 1 or -1, the stronger the relationship, and the closer to 0, the weaker. the bond strength is conditionally very strong (|0.9;1|), strong (|0.7;0.9|), medium (|0.5;0.7|), weak ( |0.3;0.5|), insignificant (|0.1;0.3|) are estimated at such levels.3 in econometric modeling, it is advisable to choose factors with a correlation level greater than 0.7 and less than -0.7. we describe the correlation coefficients between investments attracted to special economic zones and other factors in table 2 below. table 2 correlation coefficients between investments attracted to special economic zones and factors influencing it i si bi m2 indicators 1,0000 0,2530 0,8106 0,8233 i 1,0000 -0,1297 0,4788 si 1,0000 0,4689 bi 1,0000 m2 note: calculations were made in gretl software. it can be seen from table 1 that the correlation coefficient between the volume of investments attracted to special economic zones (i) and tax benefits (si) is equal to 0.253, which means that the relationship between the two factors is insignificant. the correlation coefficient between the volume of investments attracted to special economic zones (i) and customs benefits (bi) is equal to 0.8106, and the relationship between the two factors is strongly correlated. the correlation coefficient between the volume of investments attracted to special economic zones (i) and the mass of money in circulation (m2) is equal to 0.8233, which indicates that there is a strong direct connection between the two factors. so, to build an econometric model, we take customs benefits (bi) and money supply (m2) as influencing factors. the analysis of the correlation coefficients between the remaining factors shows that there is no problem of multicollinearity with the factors selected for our analysis. at the next stage of the analysis, we will build an econometric model that shows the influence of customs preferences (bi) and money supply (m2), which are strongly related to the volume of investments directly attracted to special economic zones (i). based on the data of appendix 1, we perform modeling analyzes in a special software package and present the optimal model obtained as a result of the analyzes in table 3. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 26 www.americanjournal.org table 3 the regression equation of the influence of factors on the volume of investments attracted to special economic zones in uzbekistan factors coefficient standard error t-statistics p-value confidence level const −7,53710 1,74905 −4,309 0,0006 * bi 0,962469 0,309559 3,109 0,0072 *** m2 0,456435 0,221718 2,059 0,0573 *** the dependent variable's average 215,6579 standard deviation 283,5821 sum of residuals' squares 95278,93 standard error 93,06837 r-squared 0,908863 adjusted r-squared 0,892292 f-statistics (4, 34) 54,84856 r-value (f) 1,90e-06 an indicator of logarithmic closeness to reality −81,64369 akaike criterion 169,2874 schwarz criterion 171,2045 hanna-quinn criterion 169,1099 parameter rho 0,314538 darbin-watson statistics 1,663127 note: calculations were calculated in the gretl software complex. in the econometric model: const – initial value of the model; bi – customs benefits; m2 – money supply in circulation; i – investments in special economic zones; e – uncertainty part of the model. inductive analysis of the model: the indicator representing the statistical significance of the model (fstatistic) is less than 0.1 and is statistically significant with 99 percent accuracy, and the model is suitable for retention. the initial value of the model (const) is suitable for use with 90 percent accuracy according to styudent's t-test. the coefficients indicating the influence of independent variables (bi and m2) on the dependent variable are also less than 0.01 and they are also statistically significant with 99 percent certainty according to styudent's t-test. so the model is suitable for use. the coefficient of determination (adjusted r-squared) of the constructed model is equal to 0.8923, which means that the model can explain 89.23 percent of changes in the volume of investments (i) attracted to special economic zones. if the darbin-watson statistic, which assesses the absence of autocorrelation in the model, is in the range (1.5621; 2.4379), then autocorrelation does not exist. in our model, this indicator is equal to 1.6631 and gives the conclusion that there is no autocorrelation. when the residuals were checked for normal distribution, it was found that they were normally distributed. interpretive analysis of the model: i = 0,9625bi + 0,4564m2+const+e (2) as we noted above, here const is the initial value of the model, bi is customs benefits, m2 is the money supply in circulation, i is investments in special economic zones, e is the uncertainty part of the model. it was seen from the model that the correlation coefficients between independent variables (bi and m2) and the volume of investments attracted to special economic zones (i) and the connection in the model are mutually proportional. the independent variable in the model is an increase (decrease) in the volume of customs benefits (bi) by 1 (one) billion soums, an increase (decrease) in the volume of investment (i) in special economic american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 27 www.americanjournal.org zones by 0.9625 million us dollars, the mass of capital in circulation an increase (decrease) of (m2) by 1 (one) billion soums leads to an increase (decrease) in the investment volume (i) in special economic zones by 0.4564 million us dollars. conclusions and suggestions from this, the following conclusions can be drawn: it is desirable to encourage the increase of investment in special economic zones by applying customs benefits; the increase in the volume of money in circulation has a positive effect on the increase in the volume of investment in special economic zones. conclusion each government determines its own definition of a special economic zone. above all, companies may also be offered tax vacations, in which they are allowed a period of cheaper taxation after establishing themselves in a zone. references 1. smorodinskaya n. free economic zones (world experiences). west. far eastern branch of the russian academy of sciences, 1993, no. 4,5. – p. 3-22.cassard m. the role of offshore centers in international financial intermediation. imf working paper. 1994. №107. 2. chaoqing yuan, sifeng liua, yingjie yang, ding chen, zhigeng fanga, lulu shui. an analysis on investment policy effect of china‟s photovoltaic industry based on feedback model. 3. u.s. foreign-trade zones. import administration. international trade administration. january 13, 2013. retrieved 2013-01-20. 4. fominsky i.p. foreign investments in russia: current status and prospects. – m.: international relations, 1995. – p. 234. 5. motovits t.g., motovits r.v. free economic zones: formation and development. monograph. – khabarovsk: pacific publishing house. state university, 2017. – 170 p.. 6. mccann h. offshore finance. cambridge, 2006. 7. paying taxes 2008. the global picture. pricewaterhousecoopers. the world bank. 2007. p. 4749. 8. papava vladimer. the immortal idea of a free economic zone, georgian foundation for strategic and international studies, 2007. – r. 1-16. 9. prikhodko s.v., volovik n.p. special economic zones. – m.: iepp, 2007. – 268 p. 10. annual report on the development of china‟s special economic zones (2016): blue book of china‟s special economic zones / ed. by yitao tao, yiming yuan. singapore: social sciences academic press and springer nature, 2016. –306 p. 11. annual review. the state of the economy and the main directions of foreign economic activity of the people's republic of china in 2017. // trade representation of the russian federation in the people's republic of china. – beijing, 2018 – 163 p.cassard m. the role of offshore centers in international financial intermediation. imf working paper. 1994. №107. 12. chaoqing yuan, sifeng liua, yingjie yang, ding chen, zhigeng fanga, lulu shui. an analysis on investment policy effect of china‟s photovoltaic industry based on feedback model. 13. u.s. foreign-trade zones. import administration. international trade administration. january 13, 2013. retrieved 2013-01-20. american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 12 www.americanjournal.org criminalistics in the period between world wars ibodullaev saidmuhammad rahmatullaevich 3rd year student of the faculty of law of samarkand state university named after sharaf rashidov saidibodullayev@gmail.com a b s t r a c t k e y w o r d s in this article we are talking about the fact that in the period between the two world wars for domestic criminology, the volume of accumulation of empirical material was increased, the task of disseminating forensic knowledge among specialists of professional bodies, practically creating manuals and manuals, was solved. and also the issue of the independent nature of forensic science was positively resolved, which, however, met with objections from some scientists. world wars, domestic criminalistics, crime investigation methodology, interrogation, interrogation investigation, criminal investigation, detective, criminal technique, sign, identification. introduction the development of forensic science in western countries mainly consisted in the development of tools and methods for studying open evidence. only in germany, attention was paid to theoretical issues and problems of forensic tactics and methodology. e. lokar's fundamental study «guide to forensic science», the last (seventh) volume that arrived on the eve of the second world war (an abbreviated one-volume translation into russian was published in 1940), was widely known. locard, by discovery, for the first time studying dust and other microobjects, developed a method of identification by pores (poroscopy), for many years he was the head of the lyon police laboratory, founded by the forensic doctor lacassagne. in germany, hans schneikert, head of the berlin department of investigation, developed questions of describing the appearance of criminals and methods of working with traces. his books «teaching about signs for identification» and «introduction to criminal technique» were published in russian in 1925 and 1926. together with v. stieber, he publishes the «practical guide for investigation positions» (russian edition, 1925). in 1924, schneikert, infected by the berlin bureau for the identification and teaching of forensic science in the berlin study above, publishes the book «the mystery of the criminal and ways to reveal it», published in russian translation the following year. in the same years, the works of another german criminologist, robert heindl, are widely known: “criminal technique”). erich annushat in the book «artificial inflammation of crime and gas logic» (translated 1927) the problems of using examples of inferences, rules for constructing and testing assumptions by investigators. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 13 www.americanjournal.org this period of development of domestic criminology is characterized by a pronounced practical bias, based on the urgent tasks of combating crime, setting the work of the investigative apparatus, the employees have neither desire, nor desire, nor experience. in the forensic literature at the beginning of the period, translated works predominate in order to somehow observe and arm young investigators and experts. but even in these years, in the first domestic works, marked by more exceptions to western forensic science, there are a number of original lawyers. they are found in the work of g. yu. manns (1921) and p. s. semenovsky (1923). i. n. yakimov in the first study on the investigation of crimes (1924) n. p. makarenko considers the theoretical foundations of fingerprinting, some general issues of inspection tactics (1926). even in such cases, in essence, a reference manual, such as the work of p.p. mikheev and n.n. features of the subject of criminalistics, goals, objectives and system of this science, its main parts. undoubtedly, the most important and at the same time the most important for the formation and development of domestic criminology was the task of determining its subject and content. four subjects of definition exist under the clear exception of the views of western and prerevolutionary russian criminologists. so, g. yu. manne, enriched in 1921 by the subjects of forensic science, believe that they are, «firstly, the commission of crimes, professional characteristics and domestic crimes (their jargon, their definition of superstition, etc.) and , secondly, the methods of investigating crimes, including the identification of criminals «[1] in the first series of criteria for criminology, proposed in 1925 by i.n. specific, considered and adopted decisions on the investigation of crimes and accusations of the moral personality of the offender, and the goal pursued is to help justice in relation to material justice in a criminal case»[2]. g. yu. manne, i. n. yakimov, and later v. m. natanson evaluated criminology as an applied, auxiliary discipline. according to the latter, the subject of criminology is the methods of collecting and fixing evidence of guilt, and its purpose is to study the methods of solving crimes [3]. n.d. voronovsky called the methods of registering criminals, the technique of conducting inspections and methods of examining material evidence as the subject of forensic science [4]. the influence of the views of western criminologists was partially overcome in the first collective russian textbook on criminology for law schools, published in 1935. the science of how to apply the data of the natural sciences to the investigation of crimes, the best methods for conducting individual investigative actions and the most appropriate mutual arrangement of these actions, the system and planning of the investigation process, and the specific methods of investigating certain types of crimes. for the stage of formation of domestic criminology is characterized by a view of it as a technical or natural science. it seems that the reason for such an assessment of the nature of forensic science was the desire to dissociate itself from the classical legal criminal procedural science. emphasizing that forensic science is an applied technical discipline, the supporters of this concept thereby wanted to prove the need to delimit forensic and procedural knowledge. from such positions, this concept played, in our opinion, a progressive role. a similar point of view in the 20s. adhered to and g. yu. manne [6]. later, m. s. strogovich argued that forensic science is a non-legal discipline that studies the scientific and technical methods of collecting and examining evidence, an auxiliary technical tool [7]. along with the formation of the concept of the subject, opinions were expressed about the system of forensic science. in yakimov believed that it consists of two parts – criminal technique and tactics. true, in the composition of the latter, he distinguished «the general part, in content reminiscent of the american journal of business management, economics and banking volume 12 may, 2023 p a g e | 14 www.americanjournal.org forensic tactics of a later time, and the special part (the scientific method of investigation), which basically coincides with modern ideas about the forensic methodology» [8]. in 1929, v. i. gromov published a manual for police and criminal investigation agencies, which he called «methodology for investigating crimes». in the introduction to it, he wrote: «… criminal judicial practice and past experience make it possible to draw generalizing practical conclusions about the methods of work available to every person with some training, the use of which can facilitate the work of investigating crimes, for every average worker, without regard to his personal individual qualities and abilities … such conclusions, containing practical instructions or rules tested by experience, relating to the most rational use of all methods of work permissible by law in the process of investigating crimes, set out in a certain system, naturally, can to a large extent facilitate the work of investigating crimes … the success of the investigation of criminal cases almost always depends on the ability to methodically correctly build and carry out work, the ultimate goal of which is to solve crimes « [9]. v. i. gromov introduced the term «method of investigating crimes», along with which the term «private technique» later began to be used. true, in the same work he often confused methodology with methodology, using these concepts as equivalent, but the essence of the matter did not change from this: he wrote precisely about methodological recommendations. introducing a new term into science, v. i. gromov did not propose to change the system of forensic science. however, its publication caused precisely these consequences, and already in the textbook of 1935, the method of investigation began to be called an independent section of forensic science, the system of which, thus, became a tripartite one. this system was also consolidated in the second part of the textbook on criminalistics for law schools (1936), which is specially devoted to the methodology of investigation [10]. the chronological boundaries of each of the stages in the development of forensic theory, as in any periodization, are very arbitrary. therefore, already at the stage of accumulation of empirical material, we can talk about the appearance of works that belonged to the next stage in the development of the theory – the development of private forensic theories or doctrines. this is a series of works by s. m. potapov, v. i. gromov. assessing the significance of the stage of accumulation of empirical material and the role of the first domestic forensic scientists in the development of forensic science, it seems to us that it is necessary to proceed from the following provisions. the emergence and development of forensic theory became possible only due to the fact that science had at its disposal a huge amount of empirical material – both positive and negative about attempts to use forensic tools and methods. it was in this way that the empirical premises of the forensic theory arose both in the form of individual data and in the form of certain empirical patterns. a special role in the development of domestic forensic science was played by the work of this period by two outstanding forensic scientists i. n. yakimov and v. i. gromov, whose work we consider it necessary to dwell on. ivan nikolayevich yakimov was born in 1884 in novgorod, into the family of a retired officer. in 1906, he entered the law faculty of st. petersburg university, from which he graduated in 1911. he was enrolled as a candidate for judicial positions in the district court, and then became an assistant barrister in warsaw. in 1914, as a reserve officer, i. n. yakimov was drafted into the army, but in 1916 he was demobilized due to illness, he returned to the bar as a barrister at the moscow court of justice. from 1917 to 1919 ivan nikolaevich works in the bodies of the people's commissariat of american journal of business management, economics and banking volume 12 may, 2023 p a g e | 15 www.americanjournal.org food. in 1919 he was drafted into the red army as a military specialist. for five years he has been teaching at higher educational institutions: at the higher school of communications, at the higher school of chemistry, at the academy of the air fleet. zhukovsky. regarding the subsequent period of i. n. yakimov’s life, one of his biographers, m. v. shvetsov, writes: “after the end of the civil war and the transition of the soviet state to peaceful construction, when the country faced the task of strengthening the rule of law, one of the important conditions for the implementation of this the task was to train qualified personnel of soviet lawyers.in accordance with this, the further activity of ivan nikolayevich yakimov for 13 years took place in two directions: the first of them was practical work in the organs of the nkvd; work in the field of criminalistics"[11]. in 1924-1937. ivan nikolayevich works in the moscow criminal investigation department and in the central directorate of criminal investigation of the nkvd. ivan nikolaevich combines practical work in the criminal investigation department with teaching activities: he teaches forensic science at the higher police school of the nkvd and at moscow state university at the faculty of social sciences and at the faculty of law, and after the closure of the latter at the law academy. in 1935-1941. he is an assistant professor, and then a professor at the moscow law institute. during the great patriotic war, ivan nikolayevich worked as a senior military investigator of the military prosecutor's office of the moscow garrison. since 1942, professor i. n. yakimov began to lecture at the faculty of law of moscow state university. in 1947 he defended his dissertation for the degree of doctor of law, sciences, and on december 26 he was approved as head of the department of criminology at the faculty of law of moscow state university. he served in this position until his death in january 1954. the creative path of i. n. yakimov is marked by the creation of a number of capital works on a wide range of problems of forensic science. "practical guide to the investigation of crimes"[12] was a presentation of a series of lectures to employees of the central investigation department. the book consisted of three parts: criminal technique, criminal tactics and a section called "the application of scientific methods of criminal technique and tactics to the investigation of crimes." criminal technology was divided into three departments. the first section, "technical methods of registering criminals," outlined the basics of signaletic photography, verbal portraiture, fingerprinting, and written registration. the second, "technical methods for producing certain investigative actions," dealt with inspections and searches. the third "technical methods for detecting and fixing traces of a crime" provided data on the detection, fixation, seizure and study of human traces and other traces (animals, wheels, hacking tools, weapons, fakes and forgeries, combustible substances and incendiary devices during arson), and recommendations were given on the storage of items with traces of a crime. criminal tactics were divided into four sections: the offender, the means of combating criminals, the prosecution of the criminal, and the use of dogs in the search for criminals. here, the types of criminals and their classification by type of crimes, behavior in the wild and during detention, methods of secret intercourse of criminals were studied, characteristics were given of the qualities necessary for a criminal investigation agent and his activities, methods of monitoring criminals and their detention were described. in essence, the author called the operational-search activity of the bodies of inquiry a criminal tactic. the third part was divided into two sections: the general method of investigation based on circumstantial evidence (evidence) and the application of the general method to the investigation of individual crimes. the second section contained guidelines for the investigation of crimes against the person, property crimes and crimes against society (counterfeiting, forgery). the book was accompanied by a diagram definition of a crime. immediately after the publication of the guide, whose american journal of business management, economics and banking volume 12 may, 2023 p a g e | 16 www.americanjournal.org circulation (3000 copies) could not satisfy the needs of practical workers, and the quality, apparently, of the author himself, i. n. yakimov began preparing a revised and enlarged edition. it came out under the title: "criminalistics. a guide to criminal techniques and tactics", and was also approved and recommended by the esd of the nkvd central political administration [13]. back in the mid 20 s. i. n. yakimov conceived the creation of a scientific work covering the entire system of forensic science, as he imagined it, that is, both criminal technique and criminal tactics. for unknown reasons, he could not realize his plan in full and limited himself to publishing only the second volume of this work, which was published in 1929 under the title: "criminalistics. criminal tactics"[14]. i. n. yakimov divided the content of criminal tactics into general and special parts. he divided the general part into three sections: the modern criminal, the crimes he commits and the fight against them; an employee of the criminal investigation department and his activities in the fight against criminals and crimes; investigative tactics. new (in comparison with the previous edition) were a table of the distribution of criminals by type of crime (ch. 1 sec. 1), the entire second division, including ch. 2 "the activities of detective officers in the prevention and suppression of crimes", section "psychology of interrogation" in the chapter on interrogation from the third department. it can be stated that i. n. yakimov was the first of the domestic criminologists to turn to the problem of preventing and suppressing crime and tried to solve it in the operational-search and forensic aspects. the same can be said about the foundations of the psychology of interrogation. shortly before the publication of the book under consideration, he published a special practical guide on interrogation, the material of which he used in the indicated chapter [15]. the special part of the book consisted of two sections: i. "scientific investigation" (the scientific method of investigating crimes) and ii. "investigation of individual crimes". the first section was supplemented by a historical essay, in which the author examined the methods of investigation proposed by a. weinhardt, a. niceforo and e. annushat. the second section was supplemented with guidelines for the investigation of sexual crimes, horse theft, pickpocketing, extortion and blackmail. in subsequent years, i. n. yakimov developed the problems of investigative examination in particular detail. in 1935, his work "inspection" [16] was published, he wrote the chapters on inspection in forensic textbooks of 1935, 1938 and 1950. his doctoral dissertation, defended in 1947, was also devoted to the problem of investigative examination. he was one of the first to develop identification tactics [17]. i. f. krylov rightly notes that "even a cursory biographical sketch of i. n. yakimov speaks of the comprehensiveness of his scientific interests" [18]. the name of vladimir iustinovich gromov, a scientist who made a significant contribution to the formation and development of soviet criminalistics, has been undeservedly forgotten for many years. meanwhile, the role of his scientific work in the formation of soviet forensic science is such that it allows putting v. i. gromov on a par with such scientists of that time as i. n. yakimov and s. m. potapov. v. i. gromov was born in 1869 in the city of semenov, nizhny novgorod province. in 1894, he graduated from the law faculty of moscow university, after which for five years he was listed as a candidate for judicial positions with the duties of secretary of the nizhny novgorod district court. from 1900 to 1917 v. i. gromov judicial investigator. after the revolution, v. i. gromov worked as an inspector-auditor of the military economic council of the people's commissariat for military affairs and the people's commissariat for food (1917-1918), chief legal adviser and manager of the legal department of the state control and the workers' and peasants' committee (1918-1924). in the next few years an investigator for the most important cases of the prosecutor's office of the rsfsr, a senior inspector and consultant of the main economic directorate of the supreme economic council. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 17 www.americanjournal.org from 1926 to 1935 v. i. gromov devotes himself entirely to research work in the field of forensic science and criminal procedure at the institute of soviet law, the institute for the study of the criminal and crime, and the institute of criminal policy. in 1935, he returned to practical work as a consultant to the central methodological bureau of the rsfsr prosecutor's office, then as a consultant to the investigation department of the ussr prosecutor's office. from 1938 to 1950 v. i. gromov in teaching: first at the moscow law institute, where in 1940 he was awarded the title of associate professor, and then at moscow state university (department of criminal procedure, classical philology, ancient languages). v. i. gromov died on march 11, 1952. v. i. gromov began his scientific activity even before the revolution [19], but his talent as a scientist really manifested itself in the 1920s and 1930s. the first major work that brought him wide fame in the circles of the legal community was the book "inquiry and preliminary investigation (theory and technique of investigating crimes)", published in 1925 under edited and with a preface by n. v. krylenko and withstood six editions [20]. the book was divided into two parts. the first dealt with the investigative bodies and the limits of their activities, the general conditions and main tasks of the activities of the bodies of inquiry and preliminary investigation, and the methods of work of the investigating bodies. in the second part, the author analyzed individual acts of investigation and their technique, the organization of investigative actions, described the scientific technique of criminal investigations and its features in relation to certain types of crimes. v. i. gromov is credited with developing the doctrine of the forensic version and planning the investigation. in 1929, v. i. gromov's work "methods for investigating crimes" was published [21]. we have already noted the importance of this work for forensic methodology. but her role was not only that. constructing his "method of investigation", the author sought to outline the typical methods of investigating certain types of crimes, available to each employee "without regard to his personal individual qualities and abilities", i.e., to turn the art of investigation into the science of investigation. of course, from the height of the modern level, much in this book looks naive. but it should not be forgotten that it was written when the literature was dominated by dogmatic schemes of the process of investigation. v. i. gromov in this work outlined the most important stages of the investigation process and formulated the general provisions of the tactics of various investigative actions (inspection, search, examination, etc.). the circle of scientific interests of v. i. gromov is extremely wide, his creative activity is amazing. suffice it to say that in addition to these works, in 1929, together with n. lagovier, he published the book "criminal judicial evidence" [22], in 1931 two of his works were published "inspection of the crime scene" [23] and "techniques for investigating individual types of crimes" [24], in 1932 "new forms and methods of investigation of official and economic crimes" [25], and in 1934 in collaboration with ii. i. tarasov-rodionov "investigation of theft and abuse in the trading apparatus"[26]. finally, in 1937, his work of a completely unusual nature was published. this is "investigative practice in examples" [27], about which its editor wrote: "scipping material from the daily practice of investigative work, the author seeks, using the example of the most common investigative cases, to give not only an analysis of the investigative actions in each case presented by him, but also to make appropriate conclusions and generalizations of a methodological nature that are generally applicable to the investigation of certain categories of criminal cases ... the information reported by the author from the field of forensic science already sounds different: these are no longer paragraphs from a textbook, but technical expediency irrefutably proven on a specific example "(with . 4). already at the age of 80, in 1949, he took part in the preparation of the investigator's handbook. in 1935/36 and 1938/39. the first domestic forensic american journal of business management, economics and banking volume 12 may, 2023 p a g e | 18 www.americanjournal.org textbooks for law schools were published, in the preparation of which all the leading criminologists of that time took part: s. m. potapov, i. n. yakimov, v. i. gromov, s. a. golunsky, a. i. vinberg , b. m. shaver, e. u. zitser and others. in 1940, the first textbook for law schools by b. m. shaver and a. i. vinberg was published. of great importance for the formation of the theory of forensic science were the articles by b. m. shaver "on the basic principles of private methods" and "the subject and method of soviet forensic science", as well as the article by s. m. potapov "principles of forensic identification", which laid the foundation for the formation of this most important forensic theory. the question of the nature of criminalistics was not specially considered during these years; a three-term system of science was adopted: technique, tactics and methodology, and after the publication of b. m. shaver's article on the subject of science a two-term system, consisting of general and special parts. the period between the two world wars for domestic criminology was mainly the time of accumulation of empirical material, the task of disseminating forensic knowledge among law enforcement officers, creating practical guidelines and manuals was solved. at the same time, the scientific foundations of forensic examination were laid (the works of a. i. vinberg, b. m. komarinets, b. i. shevchenko, s. m. potapov, etc.), foreign experience in the use of scientific tools and methods was studied to a certain extent. detection of crimes, the tactics of investigative actions were formed. the issue of the independent nature of forensic science was positively resolved, which, however, met with objections from some scientists. literature 1. manne g. yu. criminalistics as an applied discipline and subject of teaching // proceedings of professors and teachers of the irkutsk state university. dep. i. issue. 2. irkutsk, 1921. 2. yakimov i. n. criminology. m., 1925. s. 3. 3. natanson v. m. fundamentals of the technique of investigating crimes in a concise presentation. issue. 1. kharkov, 1925. s. 6-7. 4. voronovsky n. d. criminal technique. h beginning course. a practical guide for employees of investigative bodies. m., 1931. s. 5. 5. criminalistics. book i. technique and tactics of crime investigation. m., 1935. s.6 6. manne g. yu. decree. slave. s. 148. 7. strogovich ms textbook of the criminal process. m., 1936. s. 22. in the literature, i. n. yakimov is sometimes unconditionally considered to be the supporter of this point of view (see: mitrichev s. p. subject, method and system of soviet criminalistics. m., 1956. p. 11) . this is hardly fair. back in 1923, i.n. yakimov wrote: "... it (forensic science. auth.) is least of all a technique or some kind of forensic encyclopedia, but is related and close in its content to the science of criminal law" ( the science of detecting crimes // workers' and peasants' militia, 1923, no. 2-3, p. 48). he adhered to the same, although not very clear, point of view in subsequent works of 1924-1929. 8. yakimov i. n. criminology. criminal tactics. m., 1929. 9. gromov v. i. methods of investigating crimes. guide for the police and criminal investigation. m., 1929. s. 6. 10. criminalistics. methods of investigation of certain types of crimes. m., 1939. p.4. 11. shvetsov m. v. ivan nikolaevich yakimov an outstanding soviet criminologist // proceedings of the higher school of the ministry of internal affairs of the ussr. issue. 34. 1972. s. 214. 12. yakimov in a practical guide to the investigation of crimes. m., 1924. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 19 www.americanjournal.org 13. yakimov i. n. criminology. guide to criminal technique and tactics. m., 1925 (circulation 6000 copies). 14. yakimov i. n. criminology. criminal tactics. 2nd ed., revised. and additional m., 1929. s. 3. 15. yakimov u. n. the art of interrogation. a practical guide for interrogators. m., 1928. 16. yakimov i. n. inspection. m., 1935. 17. yakimov i. n. identification of criminals. m., 1928. 18. krylov i. f. essays on the history of criminalistics and forensic expertise. leningrad state university, 1975. s. 160. 19. gromov v. i. judicial investigator. household and legal justifications for the activities of a forensic investigator // journal of the ministry of justice, 1912. no. 9. 20. gromov v. i. inquiry and preliminary investigation (theory and technique of crime investigation). guidelines for bodies of inquiry and people's investigators. m., 1925. subsequent editions were published in 1926, 1928, 1930, 1931, 1935. 21. gromov v. i. methods of investigating crimes. guide for the police and criminal investigation. m., 1st ed. 1929, 2nd ed. — 1930 22. gromov v.i., lagovier p. criminal evidence. the theory of evidence and the practice of applying the rules of evidence. m., 1929. 23. gromov v.i. inspection of the crime scene. m., 1931. 24. gromov vl. technique of investigation of certain types of crimes. m., 1931. 25. gromov v.i., lagovier n. new forms and methods of investigation of official and economic crimes. m., 1932. 26. gromov v.i., tarasov-rodionov p. investigation of theft and abuse in the trading apparatus. m., 1934. 27. gromov v.i. investigative practice in examples. m., 1937; 2nd ed. 1948. american journal of business management, economics and banking issn (e): 2832-8078 volume 4, | sep., 2022 p a g e | 27 www.americanjournal.org university education and its role in promoting professional and ethical practices for accounting work, a field study in academic educational institutions in the thi qar governorate hussein ali mohsen head of accounting department, collage of administration and economics, university of thi qar, iraq hussein-mo@utq.edu.iq a b s t r a c t k e y w o r d s the study purpose to identify the role of accounting education in educational institutions in promoting professional and ethical practices of the accounting profession because this profession has an important and vital impact on the financial, administrative and economic activity of the country. statistical programs, and the researcher used the questionnaire method to enhance the results of the study that targeted educational institutions in thi qar governorate. the results of the study proved the existence of a role for academic and practical accounting qualification in promoting professional and ethical practices of the accounting profession, and the study recommended the necessity of linking theoretical courses in educational institutions to the nature of the labor market applied in various economic institutions. accounting education, educational institutions, professional and ethical practices, the accounting profession. introduction accounting education is of great importance in educational institutions due to the continuous and permanent need for accounting work in all economic and financial sectors, so it is necessary to pay attention to the process of accounting education to qualify and develop graduates and academic and practical accounting cadres in the field of profession and specialization that are able to meet the needs of the growing demand for the accounting profession. the needs of society vary and the accountancy profession must take into account the objective aspects, honesty, integrity and transparency when providing information and financial data to users of all kinds. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 28 www.americanjournal.org accounting is one of the sciences that depends on the use of the personal capabilities of accountants and their technical opinion in many of the economic and financial events that confront the accounting work within the economic units. therefore, the importance of accounting education comes from the importance of accounting itself and the benefits it provides to the society in which it operates. accounting is an organized profession that specializes in recording, classifying and summarizing economic events and communicating them to the beneficiaries. since accounting is a profession practiced by a very large number of individuals, it needs specialized cadres in the accounting field, and these cadres must be prepared according to scientific, professional and ethical foundations that regulate its nature and the mechanism of its practice by specialists in this field, in addition to the availability of personal ability to deal with many matters. which is concerned with the science of accounting and falls within the accounting work, so it is necessary to provide the scientific, professional and ethical foundations for its education and practice. from the foregoing, attention to accounting education is a continuous necessity, and there must be scientific, professional and ethical foundations for the accounting profession through which it is possible to enhance the professional and ethical practice of this profession to achieve the goal of accounting education. to achieve its goals. therefore, the current study comes to research the role of accounting education in promoting professional and ethical practices of the accounting profession through the use of advanced academic programs in accounting education by the accounting educational institutions in thi qar governorate and to meet the requirements of professional education to develop the scientific skills of practitioners of this profession and the scientific and practical qualification of students in specializations accounting and finance. first axis: study methodology: first: the problem of the study: the problem of the study is limited to the following main question: do educational institutions have a role in promoting professional and ethical practices of the accounting profession? second: the importance of the study: the importance of the study comes in defining the skills and knowledge that educational institutions must teach and communicate to students, which in turn helps them to meet the requirements of the labor market and qualify him to be able to practice his work and abide by the standards of the profession. it also provides educational institutions with the necessary information to help them develop their educational curricula. third: objective of the study: the study aims to identify the role of accounting educational institutions in promoting professional and ethical practices of the accounting profession and to identify the obstacles facing these institutions and limiting the promotion of those practices. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 29 www.americanjournal.org fourth: the hypothesis of the study: the study is based on the following two hypotheses: 1.there is a role for academic accounting education in educational institutions to promote professional and ethical practices of the accounting profession. 2.there is a role for practical accounting education in educational institutions to promote professional and ethical practices of the accounting profession. fifth: limitations of the study: -time limits of the study: the time limits of the study were limited to the year 2022. -spatial limits of the study: the study was limited to educational institutions in thi qar governorate. sixth: the method of data collection: the study was based on two approaches to achieve its goals they curriculum inductive from during books and messages and periodicals to cover the frame theoretical search and the curriculum descriptive analytical from during accreditation on me data and information that obtained from specialists in educational institutions and analyzed to reach the results. the second axis: theoretical framework for the study: the financial and economic activities in the world have developed and expanded rapidly, especially in the past fifty years in various industrial, productive, commercial, service and other sectors, which has imposed on the accounting profession to witness the development and expansion of its practices in order to meet the needs of these different sectors in obtaining accounting information appropriate for their uses, which imposed a responsibility it lies on the shoulders of accountants and practitioners of this profession to keep pace with this acceleration in the various economic and financial sectors, and since educational institutions are the party responsible for preparing accounting cadres and qualifying them from an academic, practical and moral point of view, the responsibility entrusted to them is greater and broader for the purpose of performing their duties in preparing and developing cadres professionals working in this field. accordingly, it is necessary for there to be integration and cooperation between the competent bodies and educational institutions to spread accounting awareness, maximize the desired benefit of the accounting profession, enrich scientific studies and professional developments for accounting science and accounting education curricula, based on their professional and ethical responsibilities as specialized institutions that seek to develop the technical, professional, scientific and ethical aspects of the profession and in terms of it serves the labor market at the local, regional and international levels and works on developing accounting education curricula to contribute to the development of professional and ethical practices for accounting professions in cooperation with the competent authorities. professional practices of the accounting profession mean that they are all work that the accountant does related to the accounting profession and auditing accounts in accounting units of all kinds, governmental and non-governmental, profit and non-profit units, audit offices specialized in auditing financial statements, or any other organizations related to the accounting profession where no the role of the accountant is limited to preparing the financial statements and presenting them to the american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 30 www.americanjournal.org administration, but it goes beyond that to provide financial and accounting decisions and to prepare financial and accounting reports. (al alawi: 2012, 104) the concept of ethical practices of the accounting profession is also referred to as the accountant's commitment to the customs and traditions of society, his respect for the various accounting standards and his credibility, trust, impartiality and other ethics related to the accounting profession. ( william :2019,94) the concept of academic accounting education means that all the concepts, courses and standards provided by accounting programs and specializations for students to practice the professions of accounting and auditing. (al-ta’eb: 2014, 6) the need for academic accounting education to meet the society’s needs for the accounting profession, through which it is possible to prepare academic and professional cadres capable of meeting the needs of the growing demand for the accounting profession, shows that the needs of the labor market are diverse and multiple, so the ethical aspects of the profession should be taken into account when providing accounting information to users of different types, represented by objectivity honesty, honesty, integrity and transparency. the outputs of the accounting system are among the most important inputs for decision-making as they reflect the financial situation in all transparency and clarity, and based on scientific accounting foundations and standards. this requires an integration between accounting education and the accounting profession, and the accounting education system should have clear goals and specific educational outcomes that meet the labor market's needs of specialists in the field of practicing the profession. (matar et al.: 2015, 3( the responsibility of preparing qualified accountants with the required professional and ethical skills lies with a number of parties, most notably higher education institutions, so they should keep pace with modern educational policies and methods that focus on the student’s acquisition of the required technical capabilities and skills called for by professional organizations specialized in the field of accounting, most notably the international federation of accountants. the traditional method used in educational institutions does not qualify the university student to the extent necessary to practice the profession of accounting and auditing competently, and does not give him the skills required while practicing work in various economic and financial sectors. therefore, the quality of university education plays a very important role in developing the accounting profession. ( nassar: 2013, 103( it is necessary to enhance the professional practices of the accounting profession through the following: (ahmed: 2004, 11) 1.training the accountant on the work of evaluating companies and promoting the sale of shareholders' shares in the capital. 2.constantly developing accounting education systems to match their abilities and skills with the needs of the labor market in terms of technical and cognitive abilities, personal abilities, decision-making and work under work pressures. 3.knowledge of information technology methods, linking them to accounting, and practicing the accounting profession. 4.good knowledge of conducting applied research in accounting. as for association accountants international i confirmed that environment contemporary business require a graduate eligible to perform the work accountant and practice in the market the work, from american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 31 www.americanjournal.org during earn it several skills vocational recipes help him to exercise profession accounting, and these skills are divided into the following: (mohammed: 2016, 201) 1.good thinking skill and problem solving ability. 2.communication skill. 3.information about the environment in which work is carried out in accounting units. 4.skills in professional ethics. 5.motivation for continuing education for life. 6.the ability to deal efficiently with difficult conditions. 7.technical information and its sciences, such as auditing, taxes and others. 8.information technology and systems. as that integration between practice professional and ethical for the accounting profession and education accountant prepare to forbid the foundation in preparation qualified accountants scientifically practically speaking, and makes from accounting a tool effective contribute in need state foundations scientific correct that can from during which an investigation target from education accountant, building on me that it's must look to me education accountant as a system integrated make up from group from elements interconnected to achieve its goals, which include both : (osman: 2009, 67) 1.inputs: represented by persons who can be prepared to practice accounting work in its various forms and types. 2.operational processes: they are the means of education that can be used to provide accounting skills. 3.outputs: represented by qualified persons to practice accounting work, which represents the objective of the accounting education system. 4.feedback (control): it consists in observing, evaluating and developing the previous elements and correcting the deviations that occur. it is possible to take an overview of the reality of accounting education in educational institutions in thi qar governorate as follows: 1.accounting education is practiced in iraqi universities and institutes after middle school, and therefore the orientation to study accounting is often due to the inability to complete studies in other scientific branches and often depends on the results of central acceptance from the ministry of higher education and scientific research. 2.graduates of the preparatory school in its applied, biological and literary branches are accepted in technical institutes in which the number of years of study is two years, after which the student is awarded a diploma that qualifies him to work in the accounting field as an account clerk subject to career progression. 3.graduates of the preparatory school in its various branches are also accepted in the faculties of administration and economics, in which the duration of study is four years, after which the student is awarded a bachelor’s degree in accounting sciences that qualifies him to work in the accounting field in the position of assistant accountant, subject to career progression. 4.there are not enough fields for postgraduate studies within the higher education institutions in the governorate, as the number of universities that grant higher diploma , master’s and doctorate degrees in the country is limited, which leads to a shortage of accounting cadres with sufficient scientific qualifications. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 32 www.americanjournal.org 5.the lack of sufficient applied fields for accounting education during the educational stages within educational institutions, which weakens the role of the accountant in keeping pace with the developments of the labor market and meeting all its requirements due to the lack of professional and applied experience. 6.lack of use of modern methods of teaching and accounting training within educational institutions that enable the accountant to study and understand accounting better. 7.the lack of training and development courses for workers in the accounting field, which leads to a failure to keep pace with the developments issued by the competent international professional accounting institutions. 8.the current labor market, in its public and private sectors, is limited to the application of only two types of accounting (governmental accounting and the unified accounting system). the researcher believes that accounting education in educational institutions should include multiple aspects from an academic, professional and ethical point of view, and academic theoretical courses should be linked to practical applied courses, and thus professional and ethical practices of the profession can be achieved through the following: 1.linking courses in accounting education programs to social and islamic values and beliefs. 2.linking courses in accounting programs to the professional values and practices of accounting. 3.strengthening the principle of confidentiality and preserving the rights of others in the accounting work. 4.attention to the principles of transparency, objectivity, integrity and independence. 5.developing students’ abilities in accounting programs, especially accounting standards related to professional ethics, laws and decisions related to this profession. the researcher believes that there are advantages and disadvantages in the accounting programs currently applied in educational institutions through his review of them according to his practice of academic work in teaching various accounting and auditing courses and subjects that can be identified as follows: 1.diversity of academic courses in the accounting major in line with the diversity and diversity of work and financial and accounting activities in the labor market and thus its reflection on the promotion of professional and ethical practices. 2.working in the hours and teaching units system for each course. 3.the presence of scientific cadres with appropriate qualifications in the accounting major in educational institutions in the governorate. 4.reliance on arab and foreign sources in teaching accounting subjects. as for the defects in accounting education, they can be identified as follows: 1.low admission scores in accounting and finance majors. 2.pay attention to the number of courses at the expense of type. 3.not constantly updating the courses. 4.accounting training is weak and limited to some government institutions in the governorate without diversifying it in various accounting activities. 5.short field training period. the third axis: practical framework for the study: first, the study population and sample: the study population included most of the faculty members working in faculties of administration and economics, colleges and technical institutes in higher education institutions operating in thi qar american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 33 www.americanjournal.org governorate working in four institutions (thi qar university, sumer university, southern technical college and technical institute in nasiriyah), and their number is (36) members. second: study tools: the researcher reviewed some of the literature related to accounting education and the most important elements of accounting courses. a questionnaire was formulated, which was divided into two parts: the first section: includes the personal data of the study sample, such as gender, university, educational qualification, years of experience. the second section: includes data on independent variables and consists of (26) paragraphs, which are divided into the following axes: first axis: the role of accounting academic qualification in educational institutions, consisting of (10) paragraphs. second axis: the role of practical accounting qualification in educational institutions, consisting of (7) paragraphs. third axis: the obstacles facing accounting education in educational institutions that limit the promotion of professional and ethical practices of the accounting profession, consists of (9) paragraphs. the third section: includes the data on the variables related to the promotion of professional and ethical practices of the accounting profession and consists of (8) paragraphs. third: statistical methods and treatments: the researcher adopted the questionnaire method as a basic tool for collecting data for the study related to accounting education in educational institutions and its role in promoting professional and ethical practices of the accounting profession. the data was unloaded and encoded in the statistical analysis program ( spss) . 1.frequencies and percentages. 2.arithmetic mean and standard deviation. 3.correlation coefficients . the data was corrected and entered into the statistical analysis program according to the following correction key. table no. (1( data entry method and the relative weight of the coding very low low medium big very large degree of approval 1 2 3 4 5 coding fourth: the procedures for validity of the questionnaire: the researcher presented the questionnaire in its initial form to a group of arbitrators specialized in the field of accounting and statistics, taking all the observations and opinions from the arbitrators, and then used the (alpha cronbach ) statistical coefficients that are based on calculating the alpha coefficient for each of the questionnaire’s axes and calculating the stability rate through it. to verify the stability of the questionnaire’s axes with the aim of measuring stability in the results, which means reaching the same results by using more than one measurement method under the same conditions and conditions, as shown in the following table: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 34 www.americanjournal.org table no. (2) cronbach's alpha coefficients for resolution axes no. fields number of paragraphs stability coefficient honesty coefficient 1 the role of accounting academic qualification in educational institutions 10 0.825 0.898 2 the role of practical qualification in educational institutions 7 0.717 0.854 3 obstacles to accounting education that limit the promotion of professional and ethical practices of the accounting profession 9 0.825 0.895 4 all paragraphs of the independent variable (accounting education) 26 0.869 0.828 5 all paragraphs of the dependent variable (professional and ethical practices) 8 0.813 0.886 through the previous table, it appears that all alpha coefficients were higher than (0.7) and all rates were high, where the alpha coefficient of the total score for the paragraphs of the independent variable was (0.869) and for the paragraphs of the dependent variable was (0.813), while the validity coefficient ranged between (0.898 0.854) and all transactions it was high, as the validity coefficient of the total score for the items of the independent variable was (0.828) and for the items of the dependent variable (0.886), which confirms that the axes of the questionnaire have appropriate stability. statistical analysis of the data and testing the hypothesis of the study: 1.statistical description of the study sample according to personal information: table no. (3) shows the personal characteristics of the respondents according to the variables of gender, educational institution, academic achievement and years of experience. table no. (3) the study sample according to their personal characteristics statement items repetition the ratio % sex male 30 83.3 female 6 16.7 total 36 100 enterprise thi qar university 11 30.6 sumer university 9 25 ttechnical college 8 22.2 technical institute 8 22.2 total 36 100 academic achievement master's 20 55.6 phd 16 44.4 total 36 100 years of experience less than (10) years old 10 27.7 from (1015) years old 20 55.6 more than (15) years 6 16.7 total 36 100 it is clear to the researcher from table no. (3) that most of the sample members are males, and the reason is due to the nature of society and the share of males more than females in work. it is also clear that most of the sample members are from thi qar university because of the old establishment of the university and its large size compared to sumer university and technical college, and it is clear as well as from the table, most of the study sample are holders of a master's degree, due to the short period american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 35 www.americanjournal.org of development of this specialization in these institutions. finally, it is clear from the table that most of the sample members are experienced in this specialty. 2.analyzing the data of the study variable and testing the study hypotheses: first: data analysis of study variables: aanalysis of data for independent variables: t-tests were relied on for a single sample and appropriate descriptive tests, as shown in the following tables, according to the study axes: table no. (4) arithmetic averages, standard deviations, relative weights, ranks, and ( t ) test for one sample for the items of the first axis and the total score for its items no. the role of academic accounting education in educational institutions sma standard deviation relative weight value ( t ) value ( sig.) repeti tion 1 the courses for preparing accountants in educational institutions include some courses that enhance the professional capabilities of students 3.93 0.58 78.66 8.76 0 3 2 accounting faculties and programs are supervised by highly qualified faculty members 3.96 0.61 79.33 8.61 0 2 3 the courses of study in accounting keep pace with the global developments of the profession 3.73 0.69 74.67 5.8 0 5 4 faculty members are interested in advancing the accounting profession 3.75 0.63 75.34 6.71 0 4 5 institutions are keen to attract professional and qualified teachers 3.64 0.9 72.67 3.9 0 9 6 the courses cover the requirements for developing students' accounting skills 3.7 0.78 72.11 4.27 0 10 7 accounting education enhances students' abilities in the field of electronic accounting information systems 3.74 0.75 74.67 5.44 0 6 8 the courses available in accounting programs contain topics that fit the requirements of the market 3.64 0.77 72.67 4.54 0 8 9 accounting courses contain topics that balance the professional and ethical practices of accounting 3.8 0.71 74 5.47 0 7 10 faculty members are interested in accounting programs that instill professional ethics in students 4.13 0.81 80.67 7 0 1 total marks 3.78 0.72 75.47 8.56 0 the previous table shows that all probability values (sig.) were less than (0.05), and therefore all arithmetic means are statistically significant, and the responses of the sample members did not reach the known degree of neutrality (3) and the calculated (t) values were greater than (t) values. the tabular at the degree of freedom (29) and the level of significance (0.05) and that the values of (t) are positive, meaning that the sample agrees with the content of the axis, and the relative weight of the total degree reached (75.47%), which is a large percentage, and the highest paragraphs were the tenth paragraph of the table with a relative weight of (80.67%).which is a large percentage, while the sixth paragraph had a relative weight (72.11%). from the above, we conclude that the academic qualification of accounting students has special standards that all educational institutions strive to improve their academic quality in light of american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 36 www.americanjournal.org competition between these institutions, and that the accounting major is widely accepted by students and a high degree of professionalism by faculty members. table no. (5) arithmetic averages, standard deviations, relative weights, ranks, and ( t ) test for one sample for the items of the second axis and the total score for its items no . the role of practical accounting qualification in educational institutions sma standar d deviatio n relativ e weight valu e ( t ) valu e ( sig.) repe tition 1 accounting education in universities is keen to teach students practical applied methods and programs 3.97 0.81 79.34 6.55 0 1 2 educational institutions provide suitable opportunities for training students specialized in accounting 3.34 0.89 66.67 2.16 0 7 3 educational institutions send their students to cooperating institutions to provide them with practical experience 3.54 0.68 70.67 4.29 0 6 4 accounting practical practices are consistent with the theoretical courses studied by students 3.7 0.71 74 5.45 0 4 5 faculty members are interested in developing students' practical skills 3.91 0.81 78 6.14 0 2 6 the curriculum in accounting includes the ethical principles of the accounting profession 3.77 0.73 75.34 5.77 0 3 7 the accounting major includes scientific courses that help the student in the accounting work environment 3.67 0.67 73.34 5.53 0 5 total marks 3.69 0.58 73.91 6.69 0 the previous table shows that all probability values (sig.) are less than the significance level (0.05), which indicates that all arithmetic averages are statistically significant and that the responses of individuals in the study sample did not reach the degree of known neutrality of (3). it is clear that the values of (t) are positive, i.e. the sample agrees with the content of the second axis (the role of practical accounting qualification in educational institutions) and the relative weight of the total degree is (73.91), which is a large percentage. the first paragraph obtained the first repetition in the previous table with a relative weight of (79.34%), which is a large percentage, as well as the second paragraph of the table obtained the last repetition of (66.67%), and the researcher believes that the training that the student receives is one of the most important aspects in developing the accounting profession because the correlation of theoretical accounting courses with the practical reality of the profession. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 37 www.americanjournal.org table no. (6) arithmetic averages, standard deviations, relative weights, ranks, and ( t ) test for one sample for the items of the third axis and the total score for its items no . obstacles to academic accounting education in educational institutions sma standar d deviatio n relativ e weight valu e ( t ) valu e ( sig.) repe tition 1 not keeping pace with the developments in the accounting profession 3.2 1.24 64 0.88 0.38 6 2 weak academic qualifications available in accounting education programs 3.14 1.08 62.67 0.69 0.5 7 3 lack of cooperation between educational institutions and the association of accountants and auditors 3.44 1.11 68.67 2.16 0.04 4 4 lack of cooperation between business and educational institutions 3.74 0.91 74.67 4.43 0 2 5 weakness of student admission systems in accounting programs 3.4 0.84 66 1.97 0.06 5 6 lack of awareness of the importance of the accounting profession in society 3.47 1.01 69.34 2.54 0.02 3 7 lack and weakness of laws and regulations regulating the accounting profession 3.11 0.91 61.34 0.41 0.68 8 8 lack of clarity about the accounting standards applicable in the accounting profession 3.07 0.95 61.34 0.39 0.7 9 9 focusing on the theoretical side of accounting education more than the practical 3.77 1.08 75.34 3.92 0 1 total marks 3.36 0.75 67.04 2.58 0.01 it is clear from the previous table that the probability value on the total score was less than the significance level (0.05) and on the items (9,6,4,3) it was less than the significance level, while the rest of the items were not significant and the average was neutral, and this indicates that there are some the challenges, as the level of these challenges reached (67.04%), which is an average percentage, and the most of these challenges were in the ninth paragraph, with a relative weight of (75.34), and the researcher believes that the challenges presented are caused by an increase in the theoretical side on the practical side in education, which negatively affects the practice of the profession due to the lack of cooperation with educational institutions, which is reflected in the weakness of educational institutions in training students and the lack of community awareness of the importance of the accounting profession. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 38 www.americanjournal.org bdependent variable data analysis: table no. (7) displays the results of the one-sample ( t ) test for the paragraphs of the dependent variable (enhancing professional and ethical practices for the accounting profession): table no. (7) arithmetic averages, standard deviations, relative weights, ranks, and ( t ) test for one sample for the paragraphs of the dependent variable axis and the total score for its paragraphs no. the role of academic accounting education in educational institutions sma standard deviation relative weight value ( t ) value ( sig.) repeti tion 1 courses in educational institutions are consistent with the nature of professional and ethical practices of the accounting profession 3.87 0.69 77.34 6.7 0 2 2 educational institutions are interested in graduating students with high professional competence 3.54 0.73 70.67 4 0 8 3 teaching courses in educational institutions sequentially help students acquire professional and ethical skills. 3.94 0.64 78.67 7.99 0 1 4 courses in university education include topics that promote the use of computer technology and the internet 3.74 0.69 74.67 5.81 0 5 5 accounting education courses enhance professional ethics among students 3.8 0.61 76 7.19 0 4 6 accounting education includes a course related to the ethics of practicing the accounting profession 3.7 0.96 74 4.1 0 7 7 accounting education courses emphasize objectivity and confidentiality in accounting work 3.73 0.74 74.67 5.43 0 6 8 the courses in accounting programs include topics that enhance students' tendencies and attitudes towards the accounting profession 3.84 0.84 76.67 5.48 0 3 total marks 3.77 0.46 75.34 9.2 0 from the previous table, it is clear that all the probability values (sig.) are less than the significance level (0.05), and accordingly, the arithmetic averages are statistically significant, and that the responses of the individuals did not reach the known percentage of neutrality (3), and the values of (t) were positive, meaning that the sample agreed on the content of the axis (the role of accounting education in promoting professional and ethical practices of the profession) and the relative weight of the total score reached (75.34), which is a large percentage, and the paragraph with the first repetition no. (3) was with a relative weight of (78.67%) and the second paragraph was in the last repetition with a relative weight (70.67%) the researcher believes that rehabilitating the student and developing his abilities begins with his first university steps, where he acquires the skill and understanding of accounting standards through study. second: testing the hypothesis of the study: 1.presence role for education academic accountant in institutions educational to promote practices professional and moral for profession accounting: to test the first hypothesis, the researcher used a simple linear regression analysis between the total score for the academic qualification axis and the total score for the dependent variable professional and ethical practices of the accounting profession, and the results were as follows: american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 39 www.americanjournal.org table no. (8) correlation coefficient, coefficient of determination, value ( f ) and probability value of the relationship between academic qualification and professional and ethical practices of the accounting profession variables correlation coefficient the coefficient of determination real link value (f) value (sig.) academic qualification and professional and ethical practices for the accounting profession 0.77 0.6 0.59 41.65 0 the previous table shows that the probability value (sig.) is less than the significance level (0.05) , and this indicates that the linear relationship between the dependent and independent variable is a statistical function. it indicates that the change in the nature of academic qualification in educational institutions affects by (59.8%) the professional and ethical practices of the accountant within the work environment. the following is a statement of the regression equation: table no. (9) regression model between academic qualification and professional and ethical practices of the accounting profession sample laboratories value ( beta ) value (t) value (sig.) constant 1.09 2.58 0.01 academic qualification 0.71 0.77 6.45 0.00 it is clear from the previous table that the probability value ( sig. ) was less than the significance level of the variable and constant, and the results received confirm the acceptance of the hypothesis that there is a role for academic accounting qualification in educational institutions to enhance professional and ethical practices of the accounting profession, and the researcher believes that academic qualification must include courses that concern the principles and standards of practicing the profession, and it must include a decision related to the ethics of the profession. 2.presence role for education practical accountant in institutions educational to promote practices professional and moral for profession accounting: to test the second hypothesis, use researcher analysis regression linear simple between degree the college for axis qualification practical and degree the college for the variable subordinate practices professional and moral for profession accounting and she was results as follows : table no. (10) correlation coefficient, coefficient of determination, value ( f ) and probability value of the relationship between academic qualification and professional and ethical practices of the accounting profession variables correlation coefficient the coefficient of determination real link value (f) value (sig.) practical qualification and professional and ethical practices for the accounting profession 0.81 0.6 0.64 51.57 0 it is clear from the previous table that the probability value (sig.) is less than the significance level (0.05), and this indicates that the linear relationship between the dependent and independent variable is a statistical function, as the correlation coefficient between the practical qualification of the student and his professional and ethical practices was (0.81) and the interpretation coefficient was (0.64). this indicates that the change in the nature of practical qualification in educational institutions affects by american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 40 www.americanjournal.org (64.8%) the professional and ethical practices of the accountant within the work environment. the following is a statement of the regression equation: table no. (11) regression model between academic qualification and professional and ethical practices of accounting profession sample laboratories value (beta ) value (t) value (sig.) constant 1.39 4.14 0.00 academic qualification 0.64 0.81 7.18 0.00 it is clear from the previous table that the probability value (sig.) was less than the significance level of the variable and constant, and the results presented confirm the acceptance of the hypothesis that there is a role for practical accounting qualification in educational institutions to enhance professional and ethical practices of the accounting profession, and the researcher believes that training students enhances a higher understanding of reality the accountant and thus reflected on his professional and ethical practices of the accounting profession. conclusions and recommendations: first: the conclusions: 1.there is a role for accounting academic qualification in educational institutions to promote professional and ethical practices of the accounting profession. 2. exist role to qualify practical accountant in institutions educational to promote practices professional and moral for profession accounting . 3. faculty members in educational institutions have a high degree of competence and skill in the field of accounting. 4.the accounting courses in educational institutions contain what enhances the professional abilities of students, but it is below the required level. 5. faculty members in educational institutions in the accounting major are interested in the practical and professional advancement of the accounting profession through the development of curricula. 6.accounting education in educational institutions is keen to teach students modern practical and applied methods and programs that provide students with professional and ethical skills for the accounting profession. 7.educational institutions focus on the theoretical side of accounting education more than the practical side. 8.lack of cooperation between business and educational institutions in the field of accounting training for students. 9.lack of awareness in the community of the importance of the accounting profession. 10.lack of cooperation between educational institutions and the accountants syndicate in the field of accounting training. second: recommendations: 1.the necessity of linking theoretical academic courses in educational institutions to the nature of the labor market and the ethics and practices of the accounting profession. 2.the need for educational institutions to pay attention to courses concerned with professional ethics. american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 41 www.americanjournal.org 3.the necessity for faculty members to be interested in accounting programs that enhance the ethical aspects of the accounting profession. 4.the need to increase cooperation between educational institutions, community institutions and the competent authorities in the field of accounting training to raise the level of professional accountants. 5.the need for compatibility and integration between educational institutions, trade unions and professional organizations regulating the accounting profession. sources: arabic sources: first: laws, regulations and instructions: international accounting standards board, international auditing standard no. 400 of 2010. international auditing standards board, international auditing standard no. 500 of 2010. international auditing standards board, international auditing standard no. 620 of 2010. second: books and dissertations : 1.ahmed, samser el-sayed, the labor market needs for accounting education in the twenty-first century, the third scientific conference for egyptian accountants, alexandria university, alexandria, 2004. 2.arens , alvin and james lubeck, review, an integrated introduction, translated by d. muhammad abdul qadir aldusti , dar al-marikh, riyadh, sixth edition, 2005 ad . 3.al-tayeb, adel abdel salam, the efficiency of accounting education outputs in fulfilling the requirements of banking work and ways of its development according to the opinions of academics and professionals, conference on integrating education outcomes with the labor market in the public and private sectors, jordan, 2014. 4.al-jaafari, and sun abdul-samad najm. the auditor’s role and responsibility in meeting the needs of users of financial statements , research submitted to obtain a certificate of legal accounting / arab institute of certified public accountants / baghdad iraq 2006 ad . 7. 5.al-alawi, kamal, principles of financial accounting and auditing practices between theory and practice , arab thought house, second edition, cairo, 2012. 6.friday, ahmed my dream, entrance to me audit talk , dar: house safaa for publication and distribution, edition the second, amman, jordan, 2005 ad . 7.shweila , abdel-wahab abdel-razzaq hassan, expectations gap 000 extent of the auditor's responsibility for it , research submitted to the council of the higher institute of accounting and financial studies / university of baghdad, 2009 ad. 8.al-quraishi, iyad rashid, "external auditing is a theoretical and applied scientific approach", dar al-maarifa for printing and publishing, baghdad, first edition, 2011. 9.muhammad, fath al-alah muhammad ahmed, the extent of compatibility between accounting education in sudanese universities and the requirements of the contemporary business environment , the arab journal for quality assurance of education, volume 9, issue 23, 2016. 10.metropolitans, ghassan falah, contemporary accounting auditing theory , amman, dar al masirah for publishing and distribution, 2006 ad . american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 42 www.americanjournal.org 11.matar, muhammad, and others, promoting inclusive accounting education to achieve the conditions stipulated in the international accounting education standards , eleventh international scientific conference, jordan, 2015. 12.abdullah h , khaled amin, accounting: the practical aspect , 2nd floor, amman, wael publishing and distribution house , 2004 ad . 13.othman, abdul razzaq muhammad, the fundamentals of auditing and internal control , house of books for printing and publishing, university of mosul, third edition, 2009 . 14.william thomas, warson henke , review between theory and practice, arabization and review, d. ahmed hamed, dar al-marikh for printing and publishing, riyadh, 2007. foreign sources: 1.nassar , m, et al, accounting education and accountancy profession in jordan, research journal of finance and accounting, vol.4 no.11. 2013. 2.william, boyuton "modern auditing" edition john wiley& sons, inc. usa, 2019. 3.the institute of internal auditors "auditing it projects" 2009. 4.sahin, k. n, the relationship between instructors' professional competencies and university students, (british, journal of accounting and management sciences, 2014), vol. (23) (1). american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 130 www.americanjournal.org legal issues of improving health insurance in the republic of uzbekistan boltaev mansurjon sotivoldievich, tashkent state university of law, dosent of civil law department, doctor of legal sciences e-mail: beshkap0721@gmail.com a b s t r a c t k e y w o r d s in the field of human health, it is important to make medical services affordable in all respects, high quality and financially affordable for the population. in the provision of medical services, the organization of the relationship between the medical institution, the doctor and the patient, the creation of the necessary conditions for the treatment of patients in the medical institution is organized in different ways. one of the most effective of these methods in modern medicine today is health insurance. through health insurance, the insurance company takes all organizational (financially hospitalized, highly qualified doctors) financial measures related to the treatment of the insured person (patient) in the event of an insured event, and as a result the insured person has access to qualified and quality medical care. today, there are no clear approaches to the role of health insurance in legal regulation and jurisprudence, which area of insurance it is: life insurance and general insurance. this at the same time creates a number of problems and gaps in the legal regulation of the interpretation of the essence of the health insurance contract and its application. therefore, it is important to determine the essence of health insurance, its content and specifics as a legal relationship, and thus create a legal basis for health insurance. insurer, insured person, health insurance institution, citizen, insurance company, health insurance. introduction in the maintenance and maintenance of human health, all branches of law, in addition to the provision of a certain level of protection and protection measures, determine the implementation of such provision through various means. for example, the spheres of rights by defining the rights and obligations of health care system organizations, introducing the organizational and legal norms for providing qualified medical services to patients, establishing responsibility for health injuries and providing for the powers of state bodies in this regard provide for the legal procedure for maintaining and ensuring the health of citizens. at the same time, the provision of the health of each citizen through the setting of purposeful and infidel -oriented measures for the maintenance of human health is of particular importance today. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 131 www.americanjournal.org the institute of medical insurance, as such a measure, creates a system of specific relationships for the maintenance of human health and provides the patient with the right to use guaranteed medical services in medical institutions. the citizen will have the right to demand that the costs of treatment be covered by the insurance organization in case of further deterioration of his health, if he remains unwell, through the provision of health insurance. in addition, as an object of medical insurance, a citizen may be provided for a certain period of time and with a ticket to the healer of a medical institution to undergo a medical examination, to cover the costs of diagnostics and medical advice[1]. in this situation, the provision of category medical services is an object of medical insurance, through which the costs of rendering medical services in accordance with the established procedure to a citizen who has health insurance are covered by the insurance organization. law of the republic of uzbekistan “on insurance activity” in article 4, insurance is divided into life insurance and general insurance[2]. medical insurance is considered to be dependent on the sphere of life insurance. life insurance in the civil code (in subsequent places – fc)is defined as personal insurance. as an object of a personal insurance contract, damage to life or health is provided for. in addition, in the life of the insured person, the occurrence of another event (insurance event) entered into the contract by agreement of the parties is also considered an object of personal insurance, provided for in the first part of article 921 of the fc. as can be seen from the above – mentioned ratio and analysis of norms, there is no clarity in the legislation on which two types of medical insurance – insurance contracts-belong to some kind of property or personal insurance, what constitutes its object. 2002 year of the cabinet of ministers of the republic of uzbekistan to the regulation “on the licensing of insurance activities of insurers and insurance brokers", which is considered an appendix to the decision № 413 of november 27 the 1-appendix insurance activity classifier also does not specify medical insurance[3]. and this shows the need to determine the place and essence of medical insurance in terms of legislative point of view and scientific interpretation. legal literature does not have a unanimous view and understanding of the role and scope of medical insurance. a group of scientists note that medical insurance in most cases is misinterpreted as liability insurance and damage risk insurance[4]. the other group of specialists interpret health insurance as a type of personal insurance contract[5]. some researchers conclude that medical insurance directly refers to the obligations of a medical institution and that the object of the bond is the property interests of the insurer, that is, the costs associated with its compensation in case of damage to health[6]. at the same time, in some developing countries, health insurance is also seen as a method of financial support of the population, and in conditions where the prices of medical services are high, this method is assessed as a measure of support for the low-income stratum of the population[7]. in our opinion, medical insurance is different from the usual manifestations of personal and property insurance with social orientation. from the point of view of its object, it is appropriate to interpret medical insurance as a kind of personal insurance. because, in medical insurance, as an insurance accident, the food related to the maintenance of a person's health includes: medical services (diagnosis, counseling, treatment, medical procedures and surgery) and treatment-prophylactic treatments related to health recovery. in this case, unlike personal insurance, the insured person will not receive insurance money in the event of damage to his health or the accident provided for in the insurance contract, but will have the right to receive a course of free treatment and recovery in the appropriate medical american journal of business management, economics and banking volume 15 august, 2023 p a g e | 132 www.americanjournal.org institution. the advantage of medical insurance is associated not only with the reimbursement of the cost of treatment, but also with the fact that the medical institution, the rooms in it and the treatment courses, the types of treatment are prescribed in advance in the contract. in this case, in addition to conducting appropriate treatment procedures when an insurance accident occurs with the insured person, the medical institution will have to perform such actions as hospitalization, appropriate medication and diagnostic efforts, conducting a full medical examination, attracting qualified specialists. as far as the content of the medical insurance contract is concerned, z. ivanishin expresses the following: in medical insurance, the insurer undertakes to organize and finance the provision of medical and other medical services by the executor of medical services, which after payment of the insurance premium to the insured person has contractual relations with him[8]. v.lazareva points out that the purpose of medical insurance is to ensure that citizens receive medical care and guarantee the financing of preventive measures on the account of the accumulated funds in the event of an insurance accident[9]. the point is that the purpose of medical insurance is not limited to the fact that a citizen can serve as a guarantee in the field of health care. medical insurance also serves as a “preliminary contract for the future medical service” between the medical institution and the insured person, constantly monitoring the health of the citizen. for this reason, medical insurance is considered as an insurance policy that provides for the use within the framework of the insurance money paid by the insurer from the medical service in the restoration and maintenance of the health of the insured person. this situation most often presents the insured the use of a guaranteed medical service, accompanied by the prevention of the occurrence of unforeseen necessary expenses in the event of an insurance accident, for example, when his health deteriorates. in order to conclude a medical insurance contract, the insurer will not only enter into a contractual relationship with the insurer, but will also have to enter into contractual relations with the relevant medical institution. such relations are connected with the need to provide qualified medical services to the insured person in the event of an insurance accident. in world practice, medical insurance is defined as insurance based on risks. full health insurance covers the following risks: the cost of medical services in the following cases: a) treatment; b) prophylactics; c) rehabilitation; d) medical and household care; loss of personal income as a result of incapacity for work: a) temporary; b) permanent. in the first case, the insurance covers the expenses that the insured person must be made to receive medical care, and in turn this guarantee is considered to be more conducive to the insurance of property losses and protects the client from payment of expenses that arise. in the second case, the insurer pays the property insurance to the insured person for the time of failure to work, and this guarantee is considered to be money insurance, since it protects the personal income of the insured person[10]. from an economic point of view, medical insurance is a form of social protection in the field of health care of the population, representing a guaranteed payment for medical care from the account of insurance funds collected by the insurer in the event of an insurance accident. the development of medical insurance is associated with the need to provide comprehensive qualified and acceptable medical services to the population in the conditions of exchange of the concept of "free medicine" with the concept of "medical insurance" [11]. in fact, medical insurance is an effective tool that is aimed at ensuring the need of the population for medicine in the provision of paid medical services and is used american journal of business management, economics and banking volume 15 august, 2023 p a g e | 133 www.americanjournal.org in the relationship of the real market economy of maintaining the health of citizens, and not in the conditions in which there is" free medicine". of course, medical insurance in this place, the insurance institute in general, the level of acceptance by the population is also considered significant. in most cases, the level of validity of medical insurance also does not have a significant increase, as a result of the fact that citizens perceive insurance as a negative fact, "to think of evil instead of good intentions and to hold out insurance in advance so as not to be superfluous", as well as to consider the excess output for insurance unnecessary. however, the advantages of medical insurance it will be necessary to apply it gradually, to lessen the amount of insurance premiums and contributions, as well as to carry out explanatory work on the population. medical insurance as a form of social protection of the population in the field of health guarantees the provision of medical care for any reason, including in case of loss of health related to illness or unfortunate event. it provides for measures to formulate separate insurance funds intended for the financing of medical care within the framework of insurance programs. being an object of medical insurance is an insurance risk associated with financing the provision of medical care in the event of an insurance accident. medical insurance is based on the social principals in the distribution of risks, namely: the rich pays for the poor, the healthy-for the sick, the young – for the elderly. following insurance printing: if you get sick, if you stay healthy, you lose[12]. in the event that the insured person is not ill and the reason for applying for medical care does not arise, the insurer will win. after all, the failure of the insured event, established in the contract of insurance, during the period of validity of the contract, frees the insurer from paying the insurance premium and leads to the termination of the contract. the experience of foreign countries plays an important role in the expression of the essence of medical insurance. because, by strengthening medical insurance at the legislative level and studying the experience of legal systems with positive experience in the practice of application, it becomes possible to develop positive and effective rules of legal regulation of this type of insurance. it should pay attention to the ownership of certain difference aspects of insurance carried out for the fee evasion of the health regulation system. in european countries, the print of social inclusion in health care, while in the us, the philosophy of strong competition and individuality continues to rule. the regulatory tone of health insurance is associated with the adoption of legislation on compulsory insurance of the population of european countries in the xix – xx centuries. in these countries, only a rich stratum of the population does not participate in compulsory health insurance, it is not necessary. health insurance in the us is everyone's personal business (with the exception of the content provided by mediker and medikeyd government programs) and a large part of the low-income population is deprived of the opportunity to insure their health[13]. trade unions and socio-democratic movements, socialism based on religious organizations have led to the rapid development of health insurance in european countries as well as the growth of health insurance indicators in the united states. in particular, low-income, chronic and severe musculature for health, regulated by insurance, will be exempted from additional payment. the system assumes the payment of a large part of the costs for medicines (in frantism – 95 %), injections and prostheses (80-95%), laboratory analysis (80-90%). in germany, sweden, belgium, the expenses for the treatment of patients (within the specified amount), as well as the costs of their treatment in sanatoriums, are covered. base insurance services in the us have not had steady growth rates since long ago. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 134 www.americanjournal.org the high level of insurance coverage of european countries, the breadth of the scope of medical care for insured persons is based on a significant level of subsidies allocated by governments, as well as on the redistribution of funds among insurance companies. currently, the working part of the us population (under 65 years of age) is considered to be completely deprived of government subsidies ("medikeyd"), as well as there is a fierce competition between insurance companies. usually the health insurance regulatory system ensures that each any physician insured person has the opportunity to apply for a relatively simple payment evasion for the medical service rendered to the hospital. in the 80-90-ies of the last century, the system of doctors of health societies in the us was widely used, in which the patient could refer only to these healers. as for today's ken, it is noted that the patient's choice of a healer, a method of treatment, a hospital significantly increased free level. in european countries developed a system of price cuts for medical services. the practice of negotiation between law and insurance companies and doctors ' associations (sometimes directly, in some cases with the participation of government officials) will help to keep the prices at a lower level than, and in some cases, taking into account the level of inflation. it is noted that in the us it is impossible to curb price growth and the inability of the government to do so. it can be seen that in the application of the medical insurance service it is desirable to apply the eu model, to carry out the appropriate polishing in the case of medical insurance contributions and the high absence of the prices of medical services provided for in the event of an insurance accident provided for in the contract, not to allow monopolies in this. when interpreting the essence of medical insurance, it will be necessary to take into account its relevance to the scope of application and the obligation to follow directly. so, an additional obligation for the insurer when concluding a medical insurance contract, that is, it has entered into a contractual relationship with a medical institution that is able to provide the appropriate medical services, and the corresponding obligations are imposed on that medical institution. therefore, medical insurance is considered to be the type of medical institution in which the insurer, in contrast to the usual insurance relations and entered into contractual relations with him, and the availability of the opportunity to indicate the relevant medical procedures provided for by this institution in the insurance contract. as subjects participating in the medical insurance relationship, a citizen is an insured person, an insured person, an insured medical organization is an insurer, a medical institution. according to the rule formed in the practice of insurance, a citizen is an insured person who is considered a beneficiary. in other words, the main purpose of the entire medical insurance system is to ensure that the citizen receives medical care from the account of the funds accumulated when the insurance accident occurred and to finance the preventive measures. when we say prophylactics in modern insurance systems, measures to reduce the scope of an insurance accident are understood, and prophylactics measures of a broad meaning in which the health systems of the state are responsible are not taken into account. it should be remembered that large-scale measures to preserve the health of the population, the prevention of various diseases, epidemics and pandemics, as well as the elimination of the causes of their occurrence are primarily an obligation on the health care system of the state. in contrast, medical insurance provides for the restoration of the health of citizens and the creation of specific organizational, legal and financial institutions for treatment. because, through the structure of the medical insurance contract, a specific three-party relationship is formed, and when an insurance accident occurs in the insured person and the insured person, the insurance company is required to resolve organizational and legal issues of the relevant medical services and finance the treatment process. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 135 www.americanjournal.org as an insurer in the medical insurance contract, different individuals can participate, depending on the nature of the current legislation and the existing social relations. for example, employers as an insured in compulsory medical insurance, various social funds participate as a party to the contract. at the same time, citizens themselves are allowed to become insured in voluntary medical insurance and conclude a medical insurance contract. the insurance organization is an insurance company that has a license to carry out relevant activities in the network of life insurance, as well as offers medical insurance services. in medical insurance, the most important aspect in the purpose of the insurer's activities is the implementation of the basic principal "money is spent on the health of patients". medical insurance means that the insurance company for the patient is interested in choosing for him the best doctor and treatment institution, and doctors will stop receiving money "for a visit", and now doctors will have to get the money for the service. and in the absence of medical insurance, doctors work on the basis of a system of obtaining a certain amount of money for each visit from citizens. it is considered a practice that is formed almost all over the world, and how much a citizen sees or does not see from such a visit, does not interest either a doctor or a medical institution, and does not even take responsibility for this with a certain justification and consequences. it is necessary to recognize that such a negative and effective method of medical care and one of the acceptable methods of eliminating the negative method of "remuneration for a visit", in turn, is considered to be medical insurance. after all, health insurance guarantees a high-quality medical service and creates the opportunity to receive it, as well as additional financial resources to the health sector to help solve the problem. the treatment-prophylactics institutions, in which medical services are produced and provided, are an independent subject in the market of the sale of insurance services and are an organization that can assume "entrepreneurial risk" in the competitive struggle for the right to conclude contracts with insurance companies that have full-fledged funds of the insured population. one of the main objectives of the introduction of medical insurance is the creation of a market environment for business activities of health institutions, which, in turn, will allow organizations and the population to raise additional funds through insurance. at the same time, as a result of this, the market of medical services is formed, and the heads of the treatment and prophylactic institution become sellers of medical services. world experience has shown that the efficiency of using funds is higher in insurance systems than in the distribution of them in the budgetary system. in market conditions, the income of healthcare professionals depends on how satisfied the client is with his or her medical services and whether he or she will re-apply to that address where he or she needs medical care again. in the provision of medical services, it will be important not only how the patient is treated, but also how he is treated. the patient receives a guarantee of the quality of medical care – a medical insurance organization, which monitors not only the cost, but also the quality of medical care. from the above analysis, it can be concluded that in order to establish the legal regulations for the introduction of medical insurance and its application, it is necessary, first of all, to establish the legislative framework for medical insurance. in this it is necessary to refer to the current civil code special articles on medical insurance and specify in it the most basic rules that are specific to medical insurance. in addition, for the wide application of medical insurance, the adoption of the law "on compulsory medical insurance" and the introduction of the organizational, legal and contractual procedure for its implementation are required. the implementation of these measures, in turn, will lead american journal of business management, economics and banking volume 15 august, 2023 p a g e | 136 www.americanjournal.org to the development of medical insurance in our country, as well as to the improvement of the system of ensuring the health of the population and the increase in the quality of stable medical services. references: 1. avakyan a.m. dogovor dobrovol'nogo medisinskogo straxovaniya: problemi grajdanskopravovogo regulirovaniya i puti ix resheniya// https: // cyberleninka.ru/article/n/dogovordobrovolnogo-meditsinskogo-strahovaniya-problemy-grazhdansko-pravovogo-regulirovaniya-i-putiih-resheniya. 2. bulletin of the oliy majlis of the republic of uzbekistan, 2002 y., № 4-5, article 68. 3. collection of the legislation of the republic of uzbekistan, 2002 y., № 22, article 180. 4. sommers b.d. why health insurance matters—and why research evidence should too//https://journals.lww.com/academicmedicine/fulltext/2017/09000/why_health_insurance_matt ers_and_why_research.13.aspx. 5. andrew j. barnes, yaniv hanoch. knowledge and understanding of health insurance: challenges and remedies // https://ijhpr.biomedcentral.com/articles/10.1186/s13584-017-0163-2. 6. maximillian kolbe domapielle. health insurance and access to health care services in developing countries // february 2014 journal of government and politics 5(1):80-91 doi: 10.18196/jgp.2014.0007/https://www.researchgate.net/publication/279227038_health_insuranc e_and_access_to_health_care_services_in_developing_countries. 7. kim thuy nguyen, oanh thi hai khuat, shuangge ma, duc cuong pham, giang thi hong khuat, and jennifer prah ruger. impact of health insurance on health care treatment and cost in vietnam: a health capability approach to financial protection // june 2012 american journal of public health 102(8):1450-61 doi: 10.2105/ajph.2011.300618 / https://www.researchgate.net/publication/ 225373115_impact_of_health_insurance_on_health_care_treatment_and_cost_in_vietnam_a_he alth_capability_approach_to_financial_protection. 8. ivanishin p.z. grajdansko-pravovoe regulirovanie dogovora dobrovol'nogo medisinskogo straxovaniya: avtoref. dis. kand. yurid. nauk. – kazan': 2004. – 20 s. 9. lazarevae.v.pravovoe regulirovanie medisinskoy deyatel'nosti v rossiyskoy federasii (otdel'nie aspekti teorii i praktiki): avtoref. dis. kand. yurid. nauk. – saratov: 2006. – 26 s.амбросьева т.г., силаева а.а. проблемы модернизации современной системы медицинского страхования в рф // https://cyberleninka.ru/article/n/problemy-modernizatsii-sovremennoy-sistemy-meditsinskogostrahovaniya-v-rf. 10. murav'eva n.n. rossiyskiy rinok medisinskogo straxovaniya: struktura i dinamika osnovnix segmentov // international journal of humanities and natural sciences, vol.4, с. 131. 11. axmedov s.a. medisinskoe straxovanie kak element sosial'noy zashiti naseleniya: avtoref. dis. kand. yurid. nauk // https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-elementsotsialnoi-zashchity-naseleniya. 12. axmedov s.a. medisinskoe straxovanie kak element sosial'noy zashiti naseleniya: avtoref. dis. kand. yurid. nauk // https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-elementsotsialnoi-zashchity-naseleniya. https://journals.lww.com/academicmedicine/fulltext/2017/09000/why_health_insurance_matters_and_why_research.13.aspx https://journals.lww.com/academicmedicine/fulltext/2017/09000/why_health_insurance_matters_and_why_research.13.aspx javascript:; javascript:; https://ijhpr.biomedcentral.com/articles/10.1186/s13584-017-0163-2 https://www.researchgate.net/profile/maximillian_domapielle https://www.researchgate.net/journal/journal-of-government-and-politics-1907-8374 https://www.researchgate.net/deref/http%3a%2f%2fdx.doi.org%2f10.18196%2fjgp.2014.0007 https://www.researchgate.net/journal/american-journal-of-public-health-1541-0048 https://www.researchgate.net/journal/american-journal-of-public-health-1541-0048 https://www.researchgate.net/deref/http%3a%2f%2fdx.doi.org%2f10.2105%2fajph.2011.300618 https://www.researchgate.net/publication/ https://cyberleninka.ru/article/n/problemy-modernizatsii-sovremennoy-sistemy-meditsinskogo-strahovaniya-v-rf https://cyberleninka.ru/article/n/problemy-modernizatsii-sovremennoy-sistemy-meditsinskogo-strahovaniya-v-rf https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-element-sotsialnoi-zashchity-naseleniya https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-element-sotsialnoi-zashchity-naseleniya https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-element-sotsialnoi-zashchity-naseleniya https://www.dissercat.com/content/meditsinskoe-strakhovanie-kak-element-sotsialnoi-zashchity-naseleniya american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 198 www.americanjournal.org the impact of interest rate and foreign exchange changes on public debt in iraq lect. dr. jabbar saadoon darag al-nahrain university baghdad, iraq email: jabbar.saadon@nahrainuniv.edu.iq. a b s t r a c t k e y w o r d s the study analyzed the reciprocal relationship between changes in interest and foreign exchange rates and public debt in iraq during the period from 2004 to 2023. the research included the concept of public debt, the interest rate and the factors affecting it, the concept of the exchange rate and the factors affecting it, as well as the concept and importance of public debt. data were used from the central bank of iraq for the period (20042023). the study found that there was a relationship between the independent variables represented by the interest rate and the exchange rate on public debt in the short term and the long term. the cointegration program was used, and an autoregressive study of distributed time gaps using ardl test. publicc debt, exchange rate, inflation, ardl. introduction according to the government, the outstanding iraqi public debt amounts to $76 billion, of which $55 billion is domestic debt and $21 billion is foreign debt. the iraqi government said that the public debt will be paid through federal government appropriations and the issuance of government bonds and treasury bonds. as oil prices fell repeatedly after 2014, the government needed domestic debt to finance public expenditures. the central bank of iraq owns 63% of the local debt in the form of government bonds and treasury transfers, while the remaining 37% is held by 3 government banks: al-rafidain, al-rasheed, and aliraqi trade, on the one hand, and the role of the exchange rate and interest rates in moving iraqi economic activity, on the other hand. assuming there is a sound policy in the iraqi economy. 1.1. the study problem: given the mutual influence between fiscal policy and monetary policy and the inevitability of coordination between them, especially in light of domestic consumption pressures, difficulties in american journal of business management, economics and banking volume 22 march 2024 p a g e | 199 www.americanjournal.org developing and exploiting potential savings, and the decline in foreign investment flows, especially after problems emerged due to concerns about the currency, insufficient control over inflationary trends, rising prices, and increasing public debt. it can have numerous economic consequences, which may lead to an imbalance in the effective distribution of available resources to different sectors of the economy. 1. 2. study hypothesis: the study aimed to test a basic hypothesis: there are direct and indirect relationships between changes in interest rates, foreign currencies, and domestic and foreign public debt) and the basic hypothesis leads to a number of sub-hypotheses: higher domestic interest rates increase domestic public debt. high foreign exchange rates lead to an increase in external public debt. 1 .3. objectives of the study: in addition to testing the basic hypothesis, the study aimed to: determine the theoretical framework for studying the main variables, where interest rates and foreign currencies are considered independent variables and public debt is the dependent variable. estimating the quantitative relationship between interest rates and foreign currency changes in public debt, as well as identifying general trends for each of the main study variables and some macroeconomic variables such as (gdp growth, saving,...). 2. previous studies: faraj abdel rahman, hosni mahran, 2020, the impact of interest rate and foreign exchange changes on public debt in egypt. the study reached a set of results, most notably the presence of an indirect effect of the decline in economic growth on the development of public debt through the decline of the tax revenue channel in the general budget, with the existence of a reciprocal relationship, as interest rate increases lead to an increase in public debt through the general budget deficit variable as an intermediary variable, and it was also shown that the impact of the exchange rate on foreign public debt in the short term is weak, compared to the high impact of the interest rate on the development of domestic public debt from through the channel of public debt burdens as one of the items of public spending, it was also observed that there is an indirect effect of gross domestic saving on public debt through the channel of interest rates on the one hand, and the decline in gross domestic product on the other hand, which indicates that the impact of changes in interest rates is more the effectiveness of the impact of changes in exchange rates on public debt, both domestic and foreign. bidaa jawad kazem, alaa jassim muhammad, measuring the impact of public debt on the exchange rate in iraq, for the period (2004-2022). the study reached a number of conclusions, perhaps the most prominent of which is the existence of a direct relationship between government debt, both parts (internal and external), on the parallel exchange rate. in iraq . maryam william barsoum, 2022, study of some economic variables and their impact on the size of the local public debt in egypt during the period from, it was found that the size of the local public debt is greatly affected by some economic variables that were used in the statistical model and that there is a very strong correlation with the tax revenue, as it represents one of the most important american journal of business management, economics and banking volume 22 march 2024 p a g e | 200 www.americanjournal.org sources of revenues and the extent of their contribution to financing public debt, both domestic and external, which leads to a decrease in the deficit in the state’s general budget. 3. the theoretical framework of public debt, exchange rate, interest rate. 3. 1. the concept of public debt the exacerbation of the debt problem has emerged as one of the most prominent problems faced by countries, especially developing countries, including iraq. it has transformed from a mere problem into a chronic crisis, especially after the crises that the country has been exposed to, which resulted in a tendency towards excessive domestic borrowing, in addition to external debt, (badr, majid farhan, 88, 2007). public debt refers to everything that public entities in the country borrow from others, whether locally or externally. to finance its business; due to the inability of its own resources to meet the expenses required by these works, public debt is a global phenomenon that is acceptable to a certain extent according to certain controls, but if the debt exceeds this limit and deviates from these controls, it becomes a problem, and the matter may even escalate into a crisis that leads to... there are bad effects and great risks on public funds and on the national economy as a whole. intellectual trends differed regarding the limit of public debt to gdp, but there are some studies that indicate that the acceptable limits of debt do not exceed 70% of gdp (zardag, 2009). therefore, local public debt represents the financial burdens that the government is committed to before national economic units operating in the local market. here, the government means the central government, local units, and economic and service bodies. local public debt is often the result of government borrowing from the local market and in the national currency in accordance with national legislation. therefore, we find that the state is the one that imposes the conditions it desires, and is not subject to external influences when issuing these loans, (sattar jabbar al-bayati, diana hashem jassim, 208, 2022). as for external public debt, the central bank of iraq indicates that it is the current, actual discounted amount based on residents in an economy at a certain time, for non-residents, which requires making payments on the part of the debtor to pay interest or principal amounts at points of time in the future (abdul latif iman muhammad, 77, 2017). it can be said that the public debt in iraq has reached a stage that requires study, as a result of what iraq, like other developing countries, suffers from a deficit in its public budget, where the side of public expenditures exceeds the side of public revenues, and this is either due to misuse of public revenues or due to a significant increase in the growth in public expenditures. far exceeds the growth in public revenues; due to the presence of a continuing deficit in the state’s general budget, the matter requires resources; to finance this deficit so that the state can carry out its work according to established development plans and programmes. most of this deficit was financed through domestic public debt to a greater extent than external public debt (muhammad, muhammad mustafa al-banna, 132, 1980). 3. 2. interest rate it is the price that the central bank pays on commercial bank deposits, whether they are an investment for one night or for a month or more.[1][2][3] this price is an indicator of the interest rates of commercial banks, which should not be less than the central bank rate. the interest rate also helps american journal of business management, economics and banking volume 22 march 2024 p a g e | 201 www.americanjournal.org the central bank control the supply of money in circulation by changing this price up and down in the medium term. raising interest means curbing borrowing operations and thus reducing the liquidity ratio in the market, which leads to a reduction in the inflation rate (nima, samir fakhri, 66, 2018). the interest rate is defined as the return on the investor’s capital through the price that a person obtains as a result of waiving the disposal of his money that he lends for a specific period of time. this price varies according to the period, whether monthly or yearly, and according to the amount borrowed. the longer the borrowing period, the greater the risk potential. accordingly, the interest rate is determined by the agreement of the lender and the borrower and based on supply and demand, because increasing the supply of capital will reduce the interest rate and vice versa. accordingly, the quantity of money and its turnover rate have a role in the quantity of money supplied, and the financing, precautionary and speculation motives also have a role in determining demand. on money. the bottom line is that interest rates are the return on investing money for a specific period of time in exchange for the lender’s waiver of disposing of his money throughout the period of calculating the return, which is often annual (ahmed, d. a., 20, 2012). . 3. 2. 1. factors that determine the interest rate: interest rates are determined based on the forces of supply and demand. if demand rates for the money on offer rise, it will lead to higher interest rates and at the same time will reduce lending rates in the economic circle. interest rates are affected by the size of their rise and fall within the various financial markets, as the financial markets are interconnected as a result of the movement of funds within these markets. the financial market, which is characterized by high interest rates, attracts capital to it in search of higher profitability, so the supply of these funds increases, and this in turn leads to a reduction in the price, i.e. the interest rate responds to the forces of supply and demand. at the same time, low-interest markets expel capital, resulting in a decrease in its supply, which is a factor in the interest rate rising. the prosperity of the economic situation also results in a rise in interest rates, as interest rates tend to rise in every period in which economic institutions need financing in response to the increase in production required by the economic recovery, so the demand for capital increases, which works to raise the price (diop, ndiame; ghali 23, 2012).. 3. 3. exchange rate : in order to define the exchange rate, we must know that there are two types of exchange rates. there is a fixed exchange rate, which is determined by the state and does not change with changing economic conditions. the government determines the value of its own currency and these prices are not affected by any other factors. it is considered one of the most important... the countries that set a fixed exchange rate for the currency are the oil-exporting countries of the arabian gulf, as these countries set a fixed exchange rate on their own local currencies (hanan hassan mustafa, hajir adnan zaki, 126, 2023), but what makes the local currency strong in this case is that they have an economy that depends on natural resources that make their local currency strong. on the other hand, industrialized countries liberalize the exchange rate in order to compete with other industrialized countries, as the exchange rate affects the prices of products, which greatly affects the export of products abroad. therefore, it is better for countries that liberalize exchange rates for the price of the currency to be compatible with the value of the product and provide the global consumer with value for price (tomova, mariana, 125, 2013). american journal of business management, economics and banking volume 22 march 2024 p a g e | 202 www.americanjournal.org 3. 3. 1. factors affecting the exchange rate: the reasons for the rise and fall of the currency price are due to the expected strength of the country’s economy, as the exchange rate in industrialized countries is determined based on the concept of supply and demand, where an increase in supply leads to a decrease in the value of the exchange rate and demand leads to an increase in the value of the currency at the exchange rate, and therefore central banks it monitors the volume of liquidity offered in the local currency and increases the supply of the local currency or withdraws it from banks according to the need to determine a high or low exchange rate. some countries also set a fixed exchange rate that is determined in advance by the central bank and change it as needed through the central bank’s vision of the value of the currency (ibrahim, nevin farag, 90, 2015). there are many factors that determine the exchange rate, all of which are related to the trade relationship between two countries. remember, exchange rates are relative and are expressed as a comparison between the currencies of two countries. below are some initial determinants of currency exchange rates between two countries. note that these factors are not in any particular order, and as with many economic principles, the relative importance of these factors requires much debate (dornbusch, rudiger, 1984). 4 statistical analysis 4.1. data examination: data can be examined, using measures of central tendency, measures of dispersion, a normal distribution test, and graphs. all of these statistical operations are considered part of data examination. descriptive statistics can be clarified for the dependent variable represented by public debt, and the independent variables represented by the exchange rate and the interest rate. . 4. 1. 1. table no. (1), normal distribution of the independent variables (er, i), and the dependent variable (pb). er i pd mean 124.7500 7.125000 27710358 median 117.5000 6.000000 9350413. maximum 147.0000 20.00000 69912394 minimum 116.0000 4.000000 4255549. std. dev. 12.24691 4.495246 25813404 skewness 0.994699 1.841709 0.587017 kurtosis 2.176448 5.183845 1.717921 jarque-bera 3.863288 15.28062 2.518400 probability 0.144910 0.000481 0.283881 sum 2495.000 142.5000 5.54e+08 sum sq. dev. 2849.750 383.9375 1.27e+16 observations 20 20 20 from the table above, it is shown that the exchange rate and public debt follow a normal distribution, with probability being greater than 1% and greater than 5%, while the interest rate variable does not follow the distribution, being probability is less than 5%, and therefore we accept the alternative hypothesis and reject the null hypothesis. . american journal of business management, economics and banking volume 22 march 2024 p a g e | 203 www.americanjournal.org 4. 1. 2. table no. (2) normal distribution of the interest rate variable. 0 2 4 6 8 10 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 series: i sample 2004 2023 observations 20 mean 7.125000 median 6.000000 maximum 20.00000 minimum 4.000000 std. dev. 4.495246 skewness 1.841709 kurtosis 5.183845 jarque-bera 15.28062 probability 0.000481 the interest rate does not follow a normal distribution, since probability (0.000481) is less than 5%, and therefore we accept the alternative hypothesis, and reject the null hypothesis. 4. 1. 2. table no. (2) normal distribution of the public debt variable. 0 2 4 6 8 10 12 100 20000100 40000100 60000100 series: pd sample 2004 2023 observations 20 mean 27710358 median 9350413. maximum 69912394 minimum 4255549. std. dev. 25813404 skewness 0.587017 kurtosis 1.717921 jarque-bera 2.518400 probability 0.283881 public debt follows a normal distribution, with probability (0.283881) being greater than 5%, and therefore we accept the null hypothesis and reject the alternative hypothesis. american journal of business management, economics and banking volume 22 march 2024 p a g e | 204 www.americanjournal.org 4. 1. 2. table no. (3) normal distribution of the exchange rate variable. 0 2 4 6 8 10 12 14 115 120 125 130 135 140 145 150 series: er sample 2004 2023 observations 20 mean 124.7500 median 117.5000 maximum 147.0000 minimum 116.0000 std. dev. 12.24691 skewness 0.994699 kurtosis 2.176448 jarque-bera 3.863288 probability 0.144910 the exchange rate follows a normal distribution, with probability (0.144910) being greater than 5%, and therefore we accept the null hypothesis and reject the alternative hypothesis. 4. 2. unit root test 4. 2 .1 . table no. (4) interest rate static test null hypothesis: i has a unit root exogenous: constant, linear trend lag length: 1 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -4.620279 0.0091 test critical values: 1% level -4.571559 5% level -3.690814 10% level -3.286909 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 18 augmented dickey-fuller test equation dependent variable: d(i) method: least squares date: 01/12/24 time: 21:40 sample (adjusted): 2006 2023 included observations: 18 after adjustments american journal of business management, economics and banking volume 22 march 2024 p a g e | 205 www.americanjournal.org variable coefficient std. error t-statistic prob. i(-1) -0.812524 0.175860 -4.620279 0.0004 d(i(-1)) 0.711969 0.176509 4.033617 0.0012 c 10.66520 2.653346 4.019531 0.0013 @trend("2004") -0.450975 0.146405 -3.080329 0.0081 r-squared 0.659275 mean dependent var 0.027778 adjusted r-squared 0.586262 s.d. dependent var 3.457610 s.e. of regression 2.224020 akaike info criterion 4.629640 sum squared resid 69.24771 schwarz criterion 4.827500 log likelihood -37.66676 hannan-quinn criter. 4.656922 f-statistic 9.029602 durbin-watson stat 0.947072 prob(f-statistic) 0.001403 from the table above it is clear that the interest rate is static at the original level and at the longest model (constant, linear trend), and a slowdown rate of 1,the interest rate, probability (0.0091), will remain at 1%. 4. 2 .2 . table no. (5) exchange rate static test. null hypothesis: er has a unit root exogenous: constant lag length: 1 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -3.193285 0.0374 test critical values: 1% level -3.857386 5% level -3.040391 10% level -2.660551 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 18 augmented dickey-fuller test equation dependent variable: d(er) method: least squares date: 01/12/24 time: 21:43 sample (adjusted): 2006 2023 included observations: 18 after adjustments variable coefficient std. error t-statistic prob. er(-1) -0.471040 0.147509 -3.193285 0.0060 d(er(-1)) 0.472934 0.219500 2.154594 0.0479 c 57.20933 18.24065 3.136365 0.0068 american journal of business management, economics and banking volume 22 march 2024 p a g e | 206 www.americanjournal.org r-squared 0.436417 mean dependent var -0.833333 adjusted r-squared 0.361273 s.d. dependent var 8.382405 s.e. of regression 6.699254 akaike info criterion 6.792881 sum squared resid 673.2000 schwarz criterion 6.941276 log likelihood -58.13593 hannan-quinn criter. 6.813343 f-statistic 5.807710 durbin-watson stat 2.004516 prob(f-statistic) 0.013558 from the table above it is clear that the exchange rate is stationary at the original level (constant), and it slows down by 1, the exchange rate, probability (0.0374), remains at 5%. 4. 2 .3 . table no. (6) stagnancy test of public debt public debt remains at the first level and in the broad model (without trend and intersection) null hypothesis: d(pd) has a unit root exogenous: none lag length: 0 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -2.884185 0.0065 test critical values: 1% level -2.699769 5% level -1.961409 10% level -1.606610 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 18 augmented dickey-fuller test equation dependent variable: d(pd,2) method: least squares date: 01/12/24 time: 21:49 sample (adjusted): 2006 2023 included observations: 18 after adjustments variable coefficient std. error t-statistic prob. d(pd(-1)) -0.657066 0.227817 -2.884185 0.0103 r-squared 0.328554 mean dependent var -8276.167 adjusted r-squared 0.328554 s.d. dependent var 10942116 s.e. of regression 8966166. akaike info criterion 34.90977 sum squared resid 1.37e+15 schwarz criterion 34.95923 log likelihood -313.1879 hannan-quinn criter. 34.91659 durbin-watson stat 1.783489 american journal of business management, economics and banking volume 22 march 2024 p a g e | 207 www.americanjournal.org from the table above it is clear that the public debt is stationary at the original level and at none, that is, without (constant, linear trend), and a slowdown of 1, since it is stationary at the first level and not at the original level. the public debt is stationary (probability 0.0065), at the level of 1. %. 4.3: cointegration test 4. 3. 1 . table no. (7), johansen model test between the independent variables and the dependent variable. date: 01/12/24 time: 22:02 sample (adjusted): 2006 2023 included observations: 18 after adjustments trend assumption: linear deterministic trend series: pd er i lags interval (in first differences): 1 to 1 unrestricted cointegration rank test (trace) hypothesized trace 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.925202 53.64477 29.79707 0.0000 at most 1 0.307878 6.971354 15.49471 0.5810 at most 2 0.019119 0.347474 3.841466 0.5555 trace test indicates 1 cointegrating eqn(s) at the 0.05 level * denotes rejection of the hypothesis at the 0.05 level **mackinnon-haug-michelis (1999) p-values unrestricted cointegration rank test (maximum eigenvalue) hypothesized max-eigen 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.925202 46.67342 21.13162 0.0000 at most 1 0.307878 6.623880 14.26460 0.5345 at most 2 0.019119 0.347474 3.841466 0.5555 max-eigenvalue test indicates 1 cointegrating eqn(s) at the 0.05 level * denotes rejection of the hypothesis at the 0.05 level **mackinnon-haug-michelis (1999) p-values through the table above, the results appear, and it has two parts, the first is statistic trace and the second part is statistic max-eigen. in the first part, one cointegration vector appears, which is none * and it is significant (0.0000 probability), and it was confirmed through statistic trace (53.64477). it is greater than (29.79707critical value), and therefore we judge that the model is significant american journal of business management, economics and banking volume 22 march 2024 p a g e | 208 www.americanjournal.org regardless of the second and third vectors, and therefore we reject the null hypothesis and accept the alternative hypothesis. 4. 3 .2 . table no. (8) autoregressive test for distributed time lags using test ardl. dependent variable: pd method: ardl date: 01/12/24 time: 22:18 sample (adjusted): 2005 2023 included observations: 19 after adjustments maximum dependent lags: 1 (automatic selection) model selection method: akaike info criterion (aic) dynamic regressors (0 lag, automatic): er i fixed regressors: c variable coefficient std. error t-statistic prob.* pd(-1) 0.970499 0.113339 8.562779 0.0000 er -66684.51 213992.8 -0.311620 0.7596 i -500741.7 552263.8 -0.906708 0.3789 c 15952558 24504571 0.651003 0.5249 r-squared 0.898508 mean dependent var 28849762 adjusted r-squared 0.878209 s.d. dependent var 25998902 s.e. of regression 9073239. akaike info criterion 35.06422 sum squared resid 1.23e+15 schwarz criterion 35.26305 log likelihood -329.1101 hannan-quinn criter. 35.09787 f-statistic 44.26478 durbin-watson stat 1.566162 prob (f-statistic) 0.000000 *note: p-values and any subsequent tests do not account for model selection. through the table above, we see the significance of the model through (0.0000 probability), public debt regardless of the lack of significance of the two independent variables, the interest rate and the exchange rate, in addition to that choosing the calculated f of 44.26478, (prob f-statistic) 5. results and recommendations 5.1. results 1there is a relationship between public debt and interest rate changes with respect to domestic public debt, and foreign exchange rate changes, and with respect to foreign public debt. 2it has also been shown that the rise in local interest rates contributes to the rise in local public debt directly in the short term, while the impact of changes in foreign exchange diminishes. american journal of business management, economics and banking volume 22 march 2024 p a g e | 209 www.americanjournal.org 3while it has been shown that there is an indirect relationship between the foreign exchange rate and the local interest rate, as the rise in interest rates is characterized by flows of foreign investments in debt instruments, thus affecting reserves and then stabilizing the exchange rate in the short term. 5-2 recommendations: 1searching for non-traditional resources to strengthen the state’s financial resources to prevent resorting to domestic or foreign debt. 2attracting the informal sector may accelerate the reduction of the financial resources gap in the long term, which requires serious support and incentives in the short term. 3the state can launch projects and re-offer them to the private sector after achieving financial stability for these projects, which allows new financing opportunities that do not generate debt. 4continuing to support and launch sovereign investment funds contributes to generating relatively sustainable resources, which allows for the expansion of spending. 5expanding the tax base, not the tax bases, by targeting reform of the tax system on the one hand, setting spending ceilings for some general budget items, and activating the program and performance budgeting mechanism. this can be achieved by generalizing digitization processes for the economy as a whole, taking into account the smooth transition according to the nature of the demographic distribution of the population. ibrahim, nevin farag (2015) the relationship between the external public debt and the public budget deficit in egypt (1982 2013) arab economic research journal, no. 51/2015. badr, majid farhan (2007) the impact of the double deficit on the size of jordan’s foreign debt during the period (1977 2004), scientific journal of administrative sciences, scientific publishing council, university of kuwait. al-hajj, hassan (2007): budget deficit: problems and solutions, development bridge, arab planning institute. khalil, sami (1994) modern macroeconomic theories, kuwait. khalil, sami (2005), international economics, arab renaissance house for printing and publishing, cairo. (6) zardak, ahmed abdel rahim (2009): public debt and the public budget deficit in egypt, dar al nahda al arabiya for publishing and distribution, cairo. -abdul khader, issam (2015): the role of the general budget in achieving sustainable development in arab countries, journal of the baghdad college of economic sciences, no. 45, al-mustansiriya university, iraq. abdel latif, iman muhammad (2017) the impact of domestic and external public debt on the egyptian public budget deficit during the period (2000 2013), journal of the faculty of economics and political science, cairo university. al-adl, muhammad reda (2003): public debt and public financial capacity, center for information, support and decision-making, council of ministers. qabbal, ashraf al-sayyid hamed (2018) the effectiveness of financial and economic policies in controlling the public budget deficit in light of the evolution of the size of public debt, saleh abdullah kamel center for islamic economics, al-azhar university. mohamed, farag (2018) the relationship between political stability and economic growth in egypt, master’s thesis, banha commerce. american journal of business management, economics and banking volume 22 march 2024 p a g e | 210 www.americanjournal.org muhammad, muhammad mustafa al-banna (1980): fiscal policy and internal public debt in egypt during the period 1965-1980, phd thesis, faculty of politics and economics, cairo university. nehme, samir fakhry (2018) the bond denominated in foreign currency and the issues of achieving stability in the general level of prices and foreign exchange: iraq is a case study, arab journal of management, arab organization for administrative development, egypt. younis, muhammad ihab (2012), towards a vision for diagnosing and treating the public budget in egypt, journal of the faculty of economics and political science, cairo university. sattar jabbar al-bayati, diana hashem jassim, the iraqi banking sector: its economic importance and its relationship to financing the budget deficit, al-nahrain university, college of business economics, journal of finance and business entrepreneurship, volume 3, issue two, apr. 2023. ahmed, d. a. (2012). an operational framework for inflation targeting in egypt, phd thesis university of leicester blavy, rodolphe. public debt and productivity: the difficult quest for growth in jamaica. international monetary fund, 2006. -buiter, willem h. joys and pains of public debt. in: multidisciplinary economics. springer, boston, ma, 2005. p. 209-224. di bartolomeo, giovanni; di gioacchino, debora. fiscal-monetary policy coordination and debt management: a two-stage analysis. empirica, 2008, 35.4: 433-448. -diop, ndiame; ghali, sofiane. are jordan and tunisia's exports becoming more technologically sophisticated? analysis using highly disaggregated export databases. world bank, 2012. dornbusch, rudiger. external debt, budget deficits and disequilibrium exchange rates. 1984. emir, olcay y.; özatay, fatih; şahinbeyoğlu, gülbin. high public debt and effects of news on interest rates. central bank of the republic of turkey research department, working paper, 2004, 04/03. greiner, alfred (2008)," human capital formation, public debt and economic growth ' journal of macroeconomics, elsevier, vol. t*, no.u pages lo-ltv, match. haber, gottfried; neck, reinhard. sustainability of austrian public debt: a political economy perspective. empirica, 2006, 33.2-3: 141-154. hauner, david. public debt and financial development. journal of development economics, 2009, 88.1: 171-183. -lora, eduardo; olivera, mauricio. public debt and social expenditure: friends or foes?. emerging markets review, 2007, 8.4: 299-310. mandilaras, alexandros; levine, paul. public debt and inflation: the role of inflation‐ sensitive instruments. the manchester school, 2001, 69: 1-21. neaime, simon. financial market integration and macroeconomic volatility in the mena region: an empirical investigation. review of middle east economics and finance, 2005, 3.3: 231-255. -neaime, simon. financial market integration and macroeconomic volatility in the mena region: an empirical investigation. review of middle east economics and finance, 2005, 3.3: 231-255. -tomova, mariana, et al. european economy. 2013. -van der ploeg, frederick. macroeconomics of fiscal policy and government debt. in: multidisciplinary economics. springer, boston, ma, 2005. p. 187-208. hanan hassan mustafa , hajir adnan zaki , the window for selling foreign currency and its role in influencing the exchange rate of the iraqi dinar (an analytical study for the period 2003-2021), , alamerican journal of business management, economics and banking volume 22 march 2024 p a g e | 211 www.americanjournal.org reyadah journal of finance and business, al-nahrain university, college of business economics, vol 4, no 4, dec. , 2023. salam adel al-nasrawi, salah mahdi al-kawaz ,the role of time-oriented activity-based budgeting technique in reducing costs: an applied study, , al-reyadah journal of finance and business, alnahrain university, college of business economics, vol 4, no 2, apr., 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 46 www.americanjournal.org basic financial and investment models davranov odil jumanazarovich teacher of termiz state university. eshmuminova dilbar oral daughter termiz district 12-idum a b s t r a c t k e y w o r d s the article provides a general understanding of the main financial and investment models and the use of these models. model, innovation, investment, financial, process, use. introduction: national economy in the conditions of economic liberalization there is a lot of modernization and integration into the world economy depends on the right and based investment policy. development of investment activities in our country in accordance with the conditions of the economic environment, their economic life of the society ensuring activity in all aspects, national production process modernization and sustainable economic growth is one of the important factors of provision. that's why implemented by our government every year one of the main issues on the agenda of the planned reforms and attracting investments to the national economy of the country there is a question. main part: investments are certain or uncertain but probable risks tying capital to certain processes, at a certain time is aimed at financial and real assets in order to ensure its current value preservation, capitalization and accumulation is a depositing process. general understanding of models and the use of models. what interests them in the first place when attracting investors factors are: economic situation, political situation, legal field, geographical location, institutional organizational technical field. an important direction in the use of investment is concrete project and concrete production. this means that was at the disposal of the whole society at a given time their priority in the distribution of investments remained out of competition. it follows from this that it is known there are projects implemented at the enterprise level it is necessary to develop regions, and as a result, their infrastructures expansion, development and improvement, production areas ensuring compatibility between them and improving the condition of the labor team. free economic zones to attract more investment is being created. a free economic zone is a special one within the country is a region in which only on the basis of active attraction of foreign investment high efficiency is necessary for the production of export goods and services all conditions are created. the economy is american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 47 www.americanjournal.org changing for the better. enterprises from which sources to finance the investment of the managers there is a need for them to concentrate on it. and this is a lot requires consideration of important factors. economic factors (with the possibility and timing of receiving funds, taking into account taxes the size of the financing source, the amount of income related to the implementation of the investment project, the financing source impact on the stability and strength of enterprises, etc.) and between the interests of management, shareholders and creditors the conflict factors that arise are among these. analysis of these factors for the development of investment activities it will be necessary. this is the best way to analyze the direction of funds selection and investment suitable for each area in the future gives the opportunity to define the policy. it should be noted that in the investment policy, only the market it is not possible to work based on the mechanism. because it affects different sectors of the economy. mathematical modeling method of real economy and social implemented by creating financial models that repeat the process is increased. sources of financial resources with their use the coordination-based planning process is a balance method. depending on the nature, complexity and duration of the tasks to be solved, the financial policy: 1. financial strategy. 2. financial tactics. financial strategy is defined as providing the enterprise with financial resources. it is said in the style of the main plan, which is designed to provide. of the enterprise financial strategy of the enterprise, including its financial situation optimization of fixed and working capital analysis, income distribution, cashless payments, tax and pricing policy, takes policy in securities process. financial strategy can be basic and operational. it is the main financial strategy that determines the activity of the enterprise it refers to the mutual relations of the budget at all levels, organizing the company's income and spending it, the amount of needs and the sources of financing in one year. operational finance is one of the main financial strategies of the strategy the difference is that it includes gross income and capital gains (salary, settlement with buyers for sold products making, proceeds from loan operations) and all gross expenses (settlement with suppliers, salary, all levels budgets and break obligations with banks). financial policy is related to infrastructure categories as a special form of human activity. it is the economic basis of society there is a close relationship between them. one on the other hand, financial policy is created through economic relations ktiddi, on the other hand, came into existence on the basis of economic basis and developed, the oil policy has a certain independence. that's why for it has the opposite effect on the economy and the state of finances. this effect can be different: favorable conditions for the development of the economy through the implementation of political measures at the same time is created, and in others it is hindered. references 1. axramov e.a. экономически реформ республик узбекистан. — м: too «люк арт», 2003. 2. butikov i. qimmatli qogʻozlar bozori.. t.: консаудитинформ, 2001 3. волков а.с. оценк эффективност инвестиционннх . уч.пос. . — м.: риор, 2006. 4. дегтярев о.и. «биржево дело»: учебни дл вузов,. — м.:юнити-дана, 2003. 5. игошин a.m. инвестиции. учебник. — м.: юнити. 2005. 6. нешитойа.с. инвестици учебник. м.: «дашко к» 2006. 7. орлова е.р. инвестиции. м.: омега. 2003. 8. rashidov o.yu., karlibaeva r.x., «investitsion loyihalarni moliyalashtirish» t.: tdiu, 2005. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 108 www.americanjournal.org improving the relationship of the coach-athlete diode in sports schools ermatov sardor abdurahmon o’g’li a b s t r a c t k e y w o r d s the coach-athlete relationship is a crucial aspect of sports education, particularly in sports schools where young athletes develop both their skills and character. this article explores strategies to improve and strengthen this relationship, emphasizing its significance in fostering athletes' holistic development and achieving sporting success. sports coach, athlete, motivation, performance, skill. introduction understanding the coach-athlete relationship: the coach-athlete relationship is built on trust, communication, mutual respect, and shared goals. in sports schools, coaches play a pivotal role not only in skill development but also in shaping athletes' attitudes, values, and work ethic. a positive coach-athlete relationship can enhance motivation, performance, and overall well-being. strategies for enhancing the coach-athlete relationship: 1. establishing clear communication channels: open and honest communication between coaches and athletes is essential. coaches should encourage athletes to express their thoughts, concerns, and aspirations freely, fostering a supportive and inclusive environment. 2. building trust and rapport: trust is the foundation of any successful coach-athlete relationship. coaches can build trust by demonstrating competence, consistency, and genuine care for their athletes' development, both on and off the field. 3. individualized approach: recognizing that each athlete is unique, coaches should adopt an individualized approach to coaching. this involves understanding athletes' strengths, weaknesses, learning styles, and personal preferences, tailoring coaching methods and feedback accordingly. 4. setting realistic goals: collaboratively setting short-term and long-term goals helps align the coach's and athletes' expectations and promotes a sense of ownership and accountability. goals should be challenging yet achievable, motivating athletes to strive for continuous improvement. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 109 www.americanjournal.org 5. providing constructive feedback: effective feedback is instrumental in athletes' growth and development. coaches should deliver feedback in a timely, constructive, and respectful manner, focusing on specific behaviors and areas for improvement while also acknowledging progress and successes. 6. promoting a positive learning environment: creating a positive and supportive learning environment encourages athletes to take risks, learn from mistakes, and develop resilience. coaches should emphasize effort over outcome, celebrate progress, and foster a culture of teamwork and camaraderie. benefits of a strong coach-athlete relationship: enhanced motivation and commitment: athletes are more likely to be motivated and committed when they feel valued, supported, and understood by their coaches. improved performance: a positive coach-athlete relationship correlates with improved performance, as athletes are more receptive to instruction, feedback, and skill development. enhanced well-being: athletes who have a strong rapport with their coaches experience lower levels of stress, anxiety, and burnout, contributing to their overall well-being and enjoyment of sport. long-term development: investing in building positive coach-athlete relationships lays the foundation for athletes' long-term development, both as athletes and as individuals. understanding the coach-athlete relationship: at its core, the coach-athlete relationship is a dynamic and multifaceted interaction characterized by mutual trust, respect, communication, and shared goals. in sports schools, coaches serve as mentors, role models, and educators, guiding athletes through the rigors of training, competition, and personal growth. a strong coach-athlete relationship lays the groundwork for athletic excellence, resilience, and lifelong learning. strategies for enhancing the coach-athlete relationship: 1. establishing clear expectations: clarity is key to building a strong foundation for the coach-athlete relationship. coaches should clearly communicate their expectations regarding behavior, commitment, attendance, and performance standards from the outset, ensuring alignment and accountability. 2. creating a supportive environment: sports schools should foster a supportive and inclusive environment where athletes feel valued, respected, and empowered to reach their full potential. coaches play a pivotal role in cultivating this environment by promoting teamwork, camaraderie, and a growth mindset. 3. developing emotional intelligence: coaches must possess strong emotional intelligence to navigate the complexities of the coach-athlete relationship effectively. this includes empathy, active listening, self-awareness, and adaptability, allowing coaches to connect with athletes on a deeper level and address their individual needs and concerns. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 110 www.americanjournal.org 4. building rapport through mentorship: mentorship goes beyond coaching; it involves building meaningful relationships based on trust, respect, and mutual support. coaches should serve as mentors, guiding athletes not only in their athletic pursuits but also in their personal development, academic success, and future aspirations. 5. encouraging two-way communication: effective communication is a two-way street that requires active listening, feedback, and dialogue. coaches should create opportunities for athletes to voice their opinions, ask questions, and provide input, fostering a culture of openness, transparency, and collaboration. 6. promoting athlete autonomy: empowering athletes to take ownership of their development fosters independence, resilience, and self-confidence. coaches should encourage athletes to set their own goals, make decisions, and learn from both successes and setbacks, nurturing a sense of agency and responsibility. benefits of a strong coach-athlete relationship: enhanced performance: a positive coach-athlete relationship is associated with improved athletic performance, as athletes are more motivated, engaged, and coachable. personal growth and development: beyond the playing field, the coach-athlete relationship contributes to athletes' personal growth, character development, and life skills acquisition, including leadership, discipline, and perseverance. long-term success and satisfaction: investing in building strong coach-athlete relationships pays dividends in the long run, as athletes are more likely to pursue sports careers, excel academically, and lead fulfilling lives beyond their athletic endeavors. positive team culture and cohesion: a cohesive and supportive team culture stems from strong coach-athlete relationships, fostering trust, communication, and collaboration among team members. best practices for cultivating a positive coach-athlete relationship: lead by example: coaches should exemplify the values and behaviors they expect from their athletes, demonstrating integrity, humility, and dedication. continual learning and development: coaches should prioritize their own professional development, seeking opportunities to enhance their coaching skills, knowledge, and effectiveness. individualized approach: recognizing that each athlete is unique, coaches should tailor their coaching strategies, feedback, and support to meet the individual needs and preferences of each athlete. regular feedback and evaluation: providing timely, constructive feedback and performance evaluations helps athletes track their progress, identify areas for improvement, and set new goals. understanding the coach-athlete relationship: trust and respect: trust forms the bedrock of the coach-athlete relationship, encompassing reliability, honesty, and integrity. respect is mutual and involves valuing each other's perspectives, abilities, and contributions. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 111 www.americanjournal.org communication: effective communication is essential for clarity, understanding, and collaboration. coaches should employ various communication methods, such as verbal, non-verbal, and written, to cater to different learning styles and preferences. support and encouragement: coaches serve as mentors, providing guidance, encouragement, and emotional support to athletes. recognizing and celebrating athletes' achievements, both big and small, fosters a positive and motivating atmosphere. strategies for enhancing the coach-athlete relationship: relationship building activities: organizing team-building activities, retreats, and bonding sessions outside of regular training enhances camaraderie and cohesion among athletes and coaches. goal setting and planning: collaboratively setting short-term and long-term goals with athletes promotes ownership, commitment, and accountability. coaches should help athletes break down their goals into manageable steps and create action plans to achieve them. mental skills training: teaching athletes mental skills such as visualization, goal-setting, relaxation techniques, and positive self-talk enhances their mental resilience and performance under pressure. conflict resolution: addressing conflicts and disagreements openly and constructively prevents them from escalating and fosters trust and understanding between coaches and athletes. coaches should facilitate discussions and mediate conflicts in a fair and impartial manner, emphasizing mutual respect and finding win-win solutions. role modeling: coaches serve as role models, demonstrating professionalism, sportsmanship, and ethical behavior both on and off the field. leading by example inspires athletes to emulate positive attitudes, work ethic, and values. benefits of a strong coach-athlete relationship: academic success: a supportive coach-athlete relationship can positively impact athletes' academic performance by promoting time management, discipline, and focus. coaches can collaborate with academic support services to ensure athletes balance their athletic and academic commitments effectively. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 112 www.americanjournal.org career development: strong coach-athlete relationships can open doors to opportunities for athletes, including scholarships, sponsorships, and professional contracts. coaches can serve as valuable references and advocates for athletes pursuing careers in sports or related fields. lifelong skills: beyond sports, the lessons learned from the coach-athlete relationship, such as teamwork, resilience, and leadership, are transferable to various aspects of life. athletes develop life skills that contribute to their personal growth, relationships, and future success in any endeavor they pursue. conclusion: in sports schools, the coach-athlete relationship transcends mere instruction; it is a dynamic partnership grounded in trust, communication, and mutual respect. by implementing effective strategies, fostering a supportive environment, and prioritizing athlete development, sports schools can cultivate strong coach-athlete relationships that lay the foundation for success, both on and off the field. references 1. t.s. horn coaching effectiveness in the sport domain 2. r.l. jones et al. ambiguity, noticing, and orchestration: further thoughts on managing the complex coaching context 3. j. lyle sports coaching concepts: a framework for coaches’ behaviour (2002) 4. d.f. chambliss et al. making sense of the social world: methods of investigation (2013) american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 17 www.americanjournal.org interesting methods of organizing english till lessons rokhila bonu abdurakhmanova abdujabborovna fergana city, 17th school, english a b s t r a c t k e y w o r d s this article provides feedback on the use of game technologies in english language classes. game, technology, education, ball, objects, category, kitchen the role of teaching through various games in teaching english is incomparable. playing various games during the lesson increases the enthusiasm for learning science in the classroom, encourages passive students to better participate in the lessons, and creates an environment of competition and teamwork among students in the classroom. it also increases students' respect for their teachers. below are games that serve to increase the effectiveness of teaching during english lessons. last man standing this game is a quick game. but it gives readers some time to think. this game encourages cooperative learning, that is, while other students are talking, the rest of the students are thinking of words themselves. you need a ball to play the game. and all students should stand in a circle. you need to choose a topic. for example: things found in a kitchen, food, profession, etc. the game starts by throwing the ball to a student. that student says an english word about the topic and throws the ball to the next student. each student who receives the ball will have to say something about this topic. if they repeat the words they were told or can't find the words within a few seconds, they leave the game and watch the game sitting down. don't worry, they will still be learning. you can change this game a little differently. instead of talking about a topic, each student can talk about a different topic to the next student. for example, you can start the game by saying "say something red". the first student who catches the ball can say "strawberry" and choose a topic to throw the ball to another. this makes the game a bit more complicated, because before the student can think of a word, he must know what subject word he should think of. pictionary most english speakers are familiar with pictionary, a drawing game. for drawing purposes, you can use a regular chalkboard or a white magnetic board. divide the class into 2 groups and draw a chart on one side of the board for each team. you will enter the scores of the teams here. one person from team a comes out. and he chooses one of many upside down words and draws this word on the board. and others will have to find it. the team that found the word correctly first will be awarded a point. the team with 10 points is the winner. charades american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 18 www.americanjournal.org charades is similar to pictionary, but the main difference is that actions are used instead of pictures to represent words. this game is very useful when your students are lazy, bored and sleepy. wake them up and get them moving! write words on a few square pieces of paper for students to choose from. verbs are much easier to express. but you can use words that are a little more complicated, but that all students know. divide the class into two teams. and one student from each team chooses a piece of paper with a word written on it and expresses it with an action. the members of the team will have to find that word within three minutes. one point is given for each correct answer. the team with 10 points is the winner. taboo words helps students use synonyms and word charts. the class is divided into two groups and the teams sit facing each other. each team chooses one person from their team to sit on the chair opposite them. the teacher stands behind the students and holds a word written on a large piece of paper. the students sitting in the seats should not be able to see this word. the member of the team sitting in the seat will have 3 minutes to say the word you are holding. the main thing is that they should not use this word at all. advice for playing in large classes. if there are more than 12 students in your class, it can be a bit noisy and chaotic during the game. in this case, you can divide everyone into small groups of 5-6 and participate only when it's their turn. 20 objects (20 items) test your students' memory and vocabulary with this game at the same time. all you need is a blackboard and 20 classroom supplies. you can even use your own bag or carry-on items. put all the items on the table and ask your students to call them all and look at them. then cover everything with paper (or something similar) after a minute. ask all your students to go back to their seats and write down in english what they remember on a piece of paper. when everyone has finished, write the list of items on the board and ask students to check themselves. alternatively, you can ask them to read the words one by one and mark the correct ones. categories after playing this game once, students will be begging to play it again and again! and this game is a great way to make the most of the extra minutes. ask each student to draw 6 columns on a piece of paper. you can choose a category (topic for a word) from the last visited topics. the most commonly used categories are food, names, cities or countries, furniture or appliances, work or clothes. choose any letter and write it on the board. give your students some time to write the words that start with that letter in the columns. you can restart the game as many times as you want with other letters. letter scramble make a list of the last words your students have learned. and write a word on the board by confusing the letters. give your students some time to find the word with the letters in the correct order. the student who finds the word first is the winner. what am i thinking of? (what am i thinking about?) divide students into pairs. each student should write 5-10 words describing an object on a piece of paper. when time is up, students switch sheets and try to find what their partner has described. the first team to find the words correctly wins. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 19 www.americanjournal.org try these games in your class and be sure to write down how each of them turned out. your opinion is important for our further research. if you also know an interesting game or method, write it down. share your experience with others! references: 1. american council on the teaching of foreign languages. actfl proficiency guidelines. yonkers, ny: author, 1999.2. atkinson, t. www: the internet in the modern foreign languages classroom, london: cilt, 2002, 2nd edition.-p.358 2. rizayev d. muminova f "interactive methods in english lessons" -tashkent-, "teacher". 2018 3. sanat s. repair of motor vehicle tires //academicia globe: inderscience research. 2022. t. 3. – no. 10. – s. 80-82. 4. sanat s. vehicle tires restoration //academicia globe: inderscience research. 2022. t. 3. – no. 09. – s. 180-182. 5. khaydarovich, a. a., & muhammedovich, s. u. (2022). the role of rishton school of culture in the development of applied art on the basis of national and modern tendencies. academicia globe: inderscience research, 3(05), 22-26. 6. абдуллаев, а. х. (2019). features of drawing activities based on imagination and memory. scientific bulletin of namangan state university, 1(3), 340343. 7. абдуллаев а. х. риштанский гончар-уста рустам усмонов //novainfo. ru. – 2017. – т. 1. – №. 61. – с. 452-461. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 7 www.americanjournal.org analysis of the impact of the population and the recycling of waste quantities annually on sustainable development in turkey for the period (2008-2021) dr. jamal hussein ali, college of administration and economics, tikrit university, iraq asist. prof. dr. ahmed mohamed jassim, college of administration and economics, university of fallujah, iraq. jamal.hussien.@tu.edu.iq a b s t r a c t k e y w o r d s the increase in the population has a slight impact on the gross domestic product in turkey because this increase causes an increase in the amount of waste and thus a rise in the costs of recycling it, and therefore there is a relationship between these variables, but this relationship is negative despite the stability of the data of the same degree, and this has been proven by conducting statistical tests represented by the extended dickie-fuller static test, which proved the stability of the time series of the variables in question at the first difference, and that it is possible to conduct johansen's co-integration, which indicates the existence of a long-term equilibrium relationship between these variables, it is from the multiple linear regression equation that all the independent variables are not significant according to the (t) test, meaning that they do not affect the dependent variable except in a very small way, up to (3%), and that the standard model and through the value of (f) show that it is inefficient and unreliable for purposes predicting the future when conducting awareness campaigns to increase the population and recycle the quantities of waste annually in order to increase the growth of gdp in turkey. economic growth in tunisia, external debt, inflation, exchange rates. في التنمية المستدامة في تركيا للمدة سنوياً النفايات كمياتتدوير و السكان عددتحليل اثر (2008-1202) ، العراق. جامعة تكريت ،كلية اإلدارة واالقتصاد، جمال حسين علي د.م. جامعة الفلوجة، العراق. ،كلية االدارة واالقتصاد ، أ.م.د. احمد محمد جاسم المستخلص: american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 8 www.americanjournal.org زيادات في كمية من تسببه هذه الزيادةلما تركيا على الناتج المحلي اإلجمالي في طفيفاثر لتزايد عدد السكانان تكاليف تدويرها، وبالتالي فان هناك عالقة بين تلك المتغيرات لكن هذه العالقة سلبية في النفايات وبالتالي ارتفاع الدرجة، نفس البيانات من ذلك من خالل اجر بالرغم من استقرار اثبات تم االختبارات اإلحصائية متمثلة وقد اء باختبار السكون لديكي فوللر الموسع والذي اثبت استقرار السلسلة الزمنية للمتغيرات موضوع البحث عند الفرق االول وانه باإلمكان اجراء التكامل المشترك لجوهانسن مما يدل على وجود عالقة توازنيه طويلة االجل بين تلك معنوية حسب اختبار )غير االنحدار الخطي المتعدد ان جميع المتغيرات المستقلة المتغيرات، ومن معادلة t أي انها ) %( وان النموذج القياسي ومن خالل قيمة )3يصل الى )اال بشكل ضئيل جداً المتغير التابع تؤثر في ال f تبين انه ) لقيام بحمالت توعية لزيادة السكان واعادة تدوير يمكن االعتماد عليه ألغراض التنبؤ للمستقبل عند اوال غير كفوء . كميات النفايات سنوياً الجل زيادة نمو الناتج المحلي االجمالي في تركيا : النمو االقتصادي في تركيا، التنمية المستدامة ، تدوير النفايات. الكلمات المفتاحية المقدمة : الحاجات االنسانية والموارد االقتصادية، يعد التزايد السكاني يتكون االقتصاد بشكل عام من عنصرين رئيسين هما العنصر االقتصادي االهم من حيث التغير نحو التزايد، فكلما ازداد عدد السكان ازداد النمو السكاني وبالتالي ازداد نامية حيث االنفجار استهالك الموارد االقتصادية التي تتصف بالمحدودية والندرة، وهذه الميزة تتصف فيها البلدان ال بالرغم من ان معظمها تمتلك موارد اقتصادية كثيرة اال انها الزالت تعاني من انخفاض مستويات النمو السكاني االقتصادي وتاخر التقدم في التنمية، ياتي هنا حل يساهم ولو بنسبة قليلة في تخفيف الضغط على الموارد االقتصادية ير النفايات والمخلفات المختلفة األخرى وفي نفس الوقت يعد هذا الحل من أهم المشاكل وليس االنتهاء منه ويتمثل بتدو التي تعاني منها الدول النامية ، وتتطلب إدارة كفؤة وفاعلة كونها تُشّكل خطراً على صحة اإلنسان والبيئة المحيطة الدول آلت السبب النفايات به، فضالً عن اضرارها االقتصادية واالجتماعية ، ولهذا أهمية كبيرة لمواجهة خطر وآثارها السلبية، كما أّن العديد من دول العالم وضعت القوانين والتشريعات الخاصة بإدارة النفايات ومعالجتها بالطرق الصحيحة والسليمة، وتعد تركيا من ضمن البلدان التي تعاني من اآلثار السلبية للنفايات الصلبة، والتي ازدادت كمياتها قارنة بالسنوات السابقة نتيجة زيادة عدد السكان ونشاطاتهم االقتصادية والقدرة الشرائية واالنفتاح التجاري على م دول العالم، فضالً عن تطور السياحة، مّما دعت الحاجة التباع األساليب الحديثة والمتطورة لمعالجة النفايات، ومن ، إْذ تُسهم باالستفادة من مكونات النفايات عبر فرزها وتدويرها ، وقد تلك األساليب هي مشاريع إعادة تدوير النفايات اتبعت معظم الدول نهجاً خاصاً في إدارتها الصلبة حتّى أصبح موضوع ادارة النفايات في تطور مستمر مّما أدّى إلى بطرائق تؤمن حماية ابتكار طرائق واساليب إدارية وفنية واقتصادية تضمن نجاحها وفق منظومة متكاملة إلدارتها البيئة ، وكذلك االستفادة من بعض مكوناتها ، لتحقيق العوائد االقتصادية واالجتماعية. : اهمية البحث تتضح اهمية البحث من خالل عنصر االقتصاد االساسي والمهم المتمثل في السكان ونموه الذي يمارس تأثيراً مباشراً تركيا اي زيادة في عدد السكان ال يصاحبه زيادة في الموارد االقتصادية سوف يؤدي على الناتج المحلي االجمالي في الى انخفاض معدالت النمو االقتصادي وكذلك يؤدي الى ارتفاع في كميات النفايات والمخلفات المختلفة ، كما تكمن د مصادر الطاقة المتجددة وكذلك االهمية لهذا البحث في بيان دور تدوير النفايات في االقتصاد التركي باعتباره اح احد الموارد االكثر حداثة في وقتنا الحاضر. مشكلة البحث: تتمثل مشكلة البحث في تزايد النفايات والمخلفات المصاحب لزيادة النمو السكاني في تركيا واثره السلبي على التنمية الي وبالتالي ارتفاع تكاليف تدويرها وانخفاض المستدامة من حيث بعدها االقتصادي المتمثل بالناتج المحلي االجم عوائدها او ايراداتها. : فرضية البحث هناك تأثير للنمو السكاني ونمو مؤشرات تدوير النفايات في نمو الناتج المحلي االجمالي في ليس يفترض البحث إن تركيا. حدود البحث: american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 9 www.americanjournal.org (.1202-2008حدود البحث الزمنية المدة )_ حدود البحث المكانية جمهورية تركيا. : البحث هدف 1 .12022008في الناتج المحلي االجمالي في تركيا للمدة سنويا النفايات كميات تدوير و السكان عدد قياس أثر : منهج البحث يستند البحث الى المنهج الوصفي في دراسة أثر النمو السكاني ونمو مؤشرات تدوير النفايات في نمو الناتج المحلي االجمالي في جمهورية تركيا باالعتماد على بعض االدوات االحصائية والقياسية وتناول بعض المصادر والمراجع من منظمات وهيئات دولية معروفة. : هيكلية البحث ز المحور ، حيث رك محورينم البحث الى يالوصول الى هدف البحث والوصول الى فرضيته، قمنا بتقس لغرض قياس تضمن الجانب القياسي في نياما المحور الثا ، والتنمية المستدامة وتدويرها لنفايات ل االول الجانب المفاهيمي . 12022008االجمالي في تركيا للمدة في الناتج المحلي سنويا تدوير النفايات وكميات السكان عدد أثر المحور االول : مفهوم النفايات وتدويرها والتنمية المستدامة مفهوم النفايات -: أوالً وأنواعها تشكككل النفايككات الصككلبة أحككد أهككم المعوقككات والتحككديات التككي تواجككه – مفهوووم النفايووات الصوولبة وأنواعهووا م الككتخل النهككائي منهككا الككدول المتقدمككة والناميككة علككى حككد سككواء ، عنككد نقلهككا أو جمعهككا أو معالجتهككا مككن ثككُ بشكككل آمككن وصككحي وبككدون تككأثير علككى البيئككة و المجتمككع ، وبهككذا تُعككدّ النفايككات الصككلبة مصككدراً مككن مصككادر تلكككول البيئكككي ، والسكككيما عنكككدما أخكككذت هكككذه الكميكككات تكككزداد يومكككاً بعكككد يكككوم ، بسكككبب ارتفكككاع المسكككتوى ال ف الكثيككر مككن االقتصككادي والتطككور الصككناعي السككريع وكككذلك نسككبة زيككادة معككدالت النمككو السكككاني ، وقككد عككر اد غيككر مرغككوه فيهككا (،ُوتعككدا النفايككات الصككلبة مخلفككات مككو23:2016البككاحثين مفهككوم النفايككات )الياسككري، والتككي تنككتج مككن النشككاطات السكككانية والزراعيككة وغيرهككا مككن المصككادر ، لككذلك تمتككاز بكونهككا ذات تركيبككة متنوعككة وعككادةً مككا يككتم ربككط النفايككات الصككلبة باسككتعمال االرض واألنشككطة مككع تغيرهككا وتنككوع مصككادرها ادي ، فمككثال تنككتج البلككدان فككي أوروبككا وبككنفس الوقككت يمكككن أْن تختلككف مككن بلككد إلككى آخككر حسككب الوضككع االقتصكك الغربيككة نسككبة مككن النفايككات الصككناعية والبلديككة أكبككر مككن تلككك المنتجككة فككي اوروبككا الوسككطى والشككرقية ، إْذ تُشككّكل النفايككات العضككوية والورقيككة والبالسككتيكية نسككبة عاليككة مككن حصككة النفايككات البلديككة المتدفقككة باسككتمرار حككدياً بيئيككاً واجتماعيككاً واقتصككاديا إْذ ان زيككادة الككدخول تولككد كّميككات كبيككرة مككن فككي أوروبككا وبهككذا الشككيء يعككد ت النفايككات ومنهككا الصككلبة وبهككذا األمككر يمكككن أْن يتككرك آثككاراً بيئيككة خطيككره علككى المجتمككع مككن التلككول وانبعككال (، 562: 2017الغككازات التككي تجعككل تأثيرهككا واضككحاً علككى الصككحة العامككة والمنككا بشكككل عككام )كككريم ، (: النفايككات جمككع نفايككة ويطلككق عليهككا الكثيككر مككن التسككميات مثككل القمامككة 3: 2012عرفهككا )حككاجم و جميككل ، ه يمكككن تعريككف النفايككات بأّنهككا المككواد التككي أصككبحت مككن غيككر فائككدة والبككدّ مككن والفضككالت والخككردة إْذ إنككّ (: هككي مجموعككة االشككياء التككي 7: 2012الككتخل منهككا ت النتفككاء الحاجككة مككن اسككتعمالها، وعرفهككا )عيسككى ، تعككد غيككر ذات قيمككة لصككاحبها والواجككب الككتخل منهككا إْذ أّنهككا ناتجككة عككن نشككاطات مختلفككة مككن ذلككك اليككوم إْذ ر نافعة لوجودها في غير مكانهاتكون هذه األشياء نافعة قبل استعمالها ومن ثّم تصبح غي . ن مصكككادر مختلفكككة ومنهكككا التجاريكككة والصكككناعية تتولكككد النفايكككات الصكككلبة مككك أنووووال النفايوووات الصووولبة : -1 والسكككنية ، وإّن تركيبتهككا تختلككف بككاختالف مصككادرها ، وكككذلك فككي بعككض األحيككان تختلككف مككن شككخ إلككى american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 10 www.americanjournal.org آخككر حسككب نشككاطه االقتصككادي ، وكمككا يمكككن أْن تختلككف حسككب الطريقككة التككي تنككتج عنهككا ، ويمكككن أْن تكككون (.390: 2019، عالية من فعاليات اإلنسان )نوربحسب كّل ف : وهككي كككّل مككا يخلقككه اإلنسككان مككن مككواد صككلبة سككواء كانككت عضككوية أم غيككر عضككوية النفايووات المنيليووة • ويتخلككى عنهككا إْذ كانككت قمامككات فرديككة أو جماعيككة، ويمكككن القككول بككأّن هككذه النوعيككة مككن النفايككات عككادة ية ، وبهكككذا فكككإّن تككككون الكميكككات العظمكككى مكككن مجمكككوع النفايكككات التكككي تطكككرح فكككي المنكككاطق الحضكككر النفايككات المنزليككة غالبككاً مككا تعتمككد علككى التحركككات اليوميككة الفاعلككة لونسككان مككع أسككرتهُ ، وهنككا يعككد مسككتوى الككوعي الثقككافي وكككذلك معككدالت الككدخل هككي مككن العوامككل االساسككية فككي عمليككة وجككود النفايككات ليكككة إدارة النفايكككات بخكككدمات وأسكككلوه طرحهكككا ، وبهكككذا تقكككوم الكككدوائر البلديكككة أو الجهكككات القائمكككة بعم معينككة لتقليككل اضككرار هككذه الكميككات مككن النفايككات ، ويمكككن تجميعهككا فككي ضككوء عمليككة منتظمككة لغككرض .الجتهامع : تُعككدّ الثككورة الصككناعية والتقككدم السككريع والكبيككر الككذي يشككهده العككالم بصككورة عامككة النفايووات الصووناعية • واالنتشكككار الواسكككع للصكككناعات سكككبباً فكككي توليكككد النفايكككات ، وتشكككمل هكككذه النفايكككات مكككن بقايكككا المعامكككل والمصكككانع البتكككرو كيمياويكككة ، وصكككناعة الجلكككود والدباغكككة ، وصكككناعة المعكككادن وصكككناعة األغذيكككة صكككناعة الكككورق ، والمبيكككدات والعطكككور ومستحضكككرات التجميكككل ، والصكككناعات الهندسكككية المعلبكككة و وصكككناعات االثكككال واألبكككواه والصكككناعات االنشكككائية والتغليكككف ، والصكككناعات العالجيكككة واألصكككبا وصكككناعة البالسكككتيك والمطكككاط ، وككككّل هكككذه الصكككناعات تُعكككدّ مصكككدراً للنفايكككات الصكككناعية ، ومنهكككا هككذه حسككب نوعيككة الصككناعة وطككرف اإلنتككاج الصككناعي ومككدخالتها والطككرق الخطككرة وغيككر خطككرة و .ملةالتكنولوجية المستع : ويقصكككد بالنفايكككات الزراعيكككة جميكككع النفايكككات الصكككلبة التكككي تنكككتج مكككن األنشكككطة النفايوووات اليراعيوووة • الف الزراعيكككة والنباتيكككة والحيوانيكككة ، وإّن مكككن أهكككم هكككذه النفايكككات إفكككرازات الحيوانكككات وبقايكككا األعككك كسككماد عضككوي ، وتختلككف كميككة ونوعيككة النفايككات الزراعيككة حسككب نوعيككة الزراعككة والطككرق المتبعككة فككي اإلنتككاج الزراعككي وكككذلك مخلفككات حصككاد النباتككات وأنككواع الخضككر والفواكككه ، ويمكككن االسككتفادة ْن منهكككا ككككأعالف حيوانيكككة باإلضكككافة إلكككى مخلفكككات اآلالت والمعكككادن واألدوات الفالحيكككة ، ويمككككن أ .البالستيكية تحتوي على مواد بالستيكية ناتجة عن البيوت : تُعككدّ مككن النفايككات الخاملككة وال تشككّكل اّي خطككر علككى المنشككئات)هي عبككارة عككن نفايووات الهوودم والبنووا • بقايككا عمليككات البنككاء أو بقايككا عمليككات هككدم الككدور والعمككارات السكككنية ( وكمككا يمكككن اسككتعمالها فككي عمليككات الككردم المختلفككة وكككذلك فككي فككتح الطككرق العامككة ويمكككن االسككتفادة منهككا فككي تسككوية المنحككدرات دم احتوائهككا علككى مككواد ضككارة ولكككن مككع كثككرة هككذه الفوائككد مككن هككذه النفايككات لكنهككا تعطككي وذلككك لعكك المنطقككة منظككراً غيككر حضككارياً وعككادة مككا تككرتبط تلككك النفايككات باالسككتقرار العككام وارتفككاع معككدالت .منازلالبناء والدخل في ضوء إعادة ترميم المنازل أو السككككائلة المفككككرزة مككككن المؤسسككككات الصككككحية : هككككي جميككككع النفايككككات الصككككلبة النفايووووات ال بيووووة • والمختبككرات الطبيككة ومراكككز االبحككال الطبيككة وكككذلك مصككانع االدويككة البشككرية والبيطريككة والعيككادات الطبيككة البيطريككة ومؤسسككات التمككريض المنزلككي ويمكككن أْن تشككمل البقايككا البشككرية والحيوانيككة وسككوائل فكككرازات البشكككرية ومكككن ضكككمنها المالبكككس الملوثكككة الجسكككم بمكككا فكككي ذلكككك الكككدم ومشكككتقاته إْذ إّن اال والكّمامكككات والقفكككازات والمحكككاقن واالدوات الحكككادة الملوثكككة واالدويكككة التالفكككة والمنتهيكككة الصكككالحية american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 11 www.americanjournal.org م تقسككووالمككواد الكيمياويككة ، او النفايككات التككي تشككتمل جزئيككاً أو كليككاً علككى نسككيج انسككاني أو حيككواني .اع اآلتيةطبية الصلبة إلى األنوالنفايات ال وهي التي ال يمكن أْن تشكل احتمال خطر بايو لوجي أو كيمياوي او اشعاعي الخ النفايات ال بية غير الخ رة : -أ ..والتي تنتج من مطابخ المؤسسات الصحية واالقسام االدارية وينظر إليها بانها نفايات صلبة حضرية والتي تتم بها. معالجتها والتخل منها بالطرق الخاصة وهي التي تحمل خطر بايو لوجي او كيميائي أو اشعاعي وبذلك تحتاج إلى اجراءات النفايات ال بية الخ رة : -ب خاصة اثناء تداولها ومعالجتها والتخل منها بشكل نهائي وهي على عدة انواع. وتتكون ما يأتي : النفايات المعدية : وهي التي تحتوي على جراثيم معدية ) بكتريا فايروسات طفيليات الفطريات (. نفايات البيولوجية : مخلفات غرف الوالدة واالعضاء البشرية .ال النفايات الدوائية : وهي النفايات الناتجة عن انتاج وتحضير المنتجات الدوائية . أدوات حادة او ثاقبة او خادشه للجلد مثل المشارط والزجاج ... الخ . مخلفات معامل االبحال واالختبارات. ى عناصكككر ثقيلة وهي شكككديدة السكككمية مثل مركبات الزئبق والتي تنتج عن بعض النفايات التي تحتوي عل ة.المشع االدوات الطبية وحشوات االسنان المواد : وهي بشكككككل عام تتكون من اوراق االشككككجار واالتربة التي تكون في جانب الشككككارع نفايات الشوووووارل • .ةواالكياس وكذلك الفضالت التي ترمى في الشارع من قبل المشا : يقصككككد بكالنفكايكات التجكاريكة التي تتولكد من االسككككتعمكاالت المتنوعكة للمحالت التجكاريكة من النفوايوات الترواريوة • االسككككواق بككل انواعهكا وككذلكك بقكايكا تغليف االجهزة واالثكال المشككككتملكة في المبكاني الحكوميكة والشككككرككات كبير النفايات المنزلية من حيث والمدارس والمؤسككككسككككات التعليمية والمطاعم والفنادق وهي تشككككبه إلى حد النوعية إاّل أنها تختلف باختالف نسكككبة المكونات وكميتها ومعدل انتاجها بحسكككب فصكككول السكككنة ) الكالبي، 2019 :108 .) :وهي النفايات التي يخلفها اإلنسكان بشككل يومي بسكبب نشكاطه وحاجته اليومية، وتمثل مياه النفايات العضووية • د العضكككوية الخطرة على الصكككحة إْذ إّن النفايات العضكككوية تنتج يومياً ومن الضكككروري المجاري من الموا االهتمام بموضكوع تدويرها وإّن عدم معالجة الفضكالت وتركها للتحليل بشككل طبيعي في التربة لها مجموعة ( . 16: 2016من المضار الخطيرة )يحيى ، لية إعادة تدوير النفايات إلى ان تتعامل مع البيئة بطرق ايجابية مع وبهذا تهدف عمثانيا:مفهوم تدوير النفايات: المخاوف المتعلقة بكيفية التخل من النفايات بشكل سليم ، إْذ إّن مستوى التطور االقتصادي والنمو السكاني ادى إلى ديثة ، اذ التزال تستعمل ارتفاع مستوى المعيشي في الدول النامية ، وبهذا تصبح غير قادرة على مواكبة الطرق الح الطرق التقليدية في التخل من النفايات ، ان ادارة النفايات المتكاملة للنفايات الصلبة هي عملية البحث عن طرق لتخفيض من النفايات المنزلية والصناعية والزراعية ، وذلك بوضع طرق وبرامج وخطط الزمة ، وكمرحلة الحقة لتدوير، إْذ يتم التحقيق من بقايا النفايات والتي تتم معالجتها والتخل منها وفق المعايير سوف تتم عمليات الفرز لمواد ا الصحية ، فضال عن ذلك توجد استراتيجية للسياسة في الدول االوربية فيما يتعلق بإدارة النفايات الصلبة ، وتعتمد على (.36: 2014النحو اآلتي )مخالني ، american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 12 www.americanjournal.org تقليل كمية النفايات . • التخل اآلمن للنفايات . • إعادة تدوير النفايات . • التخل من النفيات الخطرة . • االستراتيريات المعتمدة في التخلص من النفايات : -1 : وهكككي طريقكككة متبعكككة فكككي الكككدول الناميكككة ، ومكككن ضكككمنها عمليكككة الطمكككر الصكككحي ال ريقوووة التقليديوووة • وعمليككات الحككرق العشككوائية ، والتككي تككؤدي إلككى انبعاثككات وروائككح كريهككة وغككازات سككامة خطيككرة علككى الصحة العامة . : يعككد الككردم مككن اشككهر الطككرق المتبعككة للككتخل مككن النفايككات الصككلبة، ويجككب ان يكككون ال موور الصووحي -أ وقكككع الطمكككر الصكككحي وفكككق معكككايير الصكككحي بمعكككاير و بموصكككفات هندسكككية خاصكككة ، إْذ يعتمكككد علكككى م علميككات را النفايككات الصككلبة ليككتم اسككتيعاه اكبككر كميككة ولتقليككل نسككبة النافذيككة وتغطيككة النفايككات بطبقككة طينيكككة عازلكككة وغيكككر نافكككذة ، ويمككككن دراسكككة جكككدوى اختبكككار موقكككع الطمكككر وفكككق معطيكككات جيولوجيكككة بة لكككل المواقككع البديلككة ، إْذ تضككمن عككدم االضككرار بالبيئككة عنككد تسككره المككاء، او السككوائل التككي مناسكك تخرج نتيجة تحليل النفايات إلى المياه الجوفية . عمليككات الحككرق : يمكككن القككول بككأن هككذه الطريقككة تعككد مككن اكثككر الطككرق اسككتعماالً وانتشككاراً علككى مسككتوى -ه ا بواسككطة التقنيككات الحديثككة للحككرق ، او الطريقككة العككالم فككي السككنوات الماضككية ، وتككتم هككذه الطريقككة أمككّ . ( 7: 2012العشوائية البدائية للحرق )الدغيري ، االككككوام المكشكككوفة : تعتمكككد هكككذه الطريقكككة علكككى تككككوين النفايكككات بشككككل اككككوام متنكككاثرة علكككى جوانكككب -ت اكن مقككالع الحجكك اكن اخككرى يككتم الطرقككات ، وفككي االوديككة واالراضككي الزراعيككة ، وأمككّ ارة المهجككورة وأمككّ اختبارها عشوائياً ، ولها اثار سلبية خطيرة . (. 2018:40)احمد، : ال ريقة الحديثة -أ : ان تخفيض النفايات او التقليل منها يكون في ضوء تقليل استعمال المواد المختلفة وهو الحد من توليد النفايات -ه من النفايات فضال عن استخراج وتصنيع الموارد األولية أو السلع الخيار األمثل الذي يغنينا عن الحاجة للتخل الصناعيين المصممين ان المؤكد ومن التدوير، إعادة كمية من المستعملة الطاقة تخفيض وكذلك الوسيطة، يمكنهم الكشف عن كثير من الفرا لتخفيض كمية النفايات من المنبع وذلك بتركيزهم على تطوير سلع متباينة قابلة لوصالح بدل ان تستعمل مرة واحدة وكذلك االستفادة من آراء ومعلومات الزبائن لتطوير السلع تكون ً . المصنعة، وقد تكون اكبر دافع للشركة المصنعة لتقليل كمية النفايات ولتكون اكثر امنا النفايات : يعني هذا استعمال الشيء اكثر من مرة واحدة وبهذا الحال يعمل عل إعادة االستعمال -ت تقليل ى البيئية لدى عامة الناس وبشكل مكثف في مدى االستفادة اليومية وهذا يتطلب التوعية الناتجة من انشطة االنسان . و الزجاجية والورق والخشب والتخل من النفايات البالستيكية والمعدنية : تتضمن عملية التدوير معالجة النفايات ، إْذ يمكن استعمالها كمواد خام في نفس العملية التي إعادة تدويرككككك ج والزراعية البلدية النفيات إلدارة البدائل افضل من حالياً النفيات تدوير ويعد اخرى، عمليات في او عنها تتولد مستوى الجدوى االقتصادية لهذه العمليات وعلى والصناعية على حد سواء، فضالً عن ذلك يعتمد تدوير النفايات على والقماش والزجاج الورق هي التدوير لعمليات الخاضعة النفايات اهم ان المختلفة، المنتجات على الطلب قوة .عضوية والخشب والبالستك والنفايات المعدنية والنفايات ال american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 13 www.americanjournal.org ات: ثالثا:مفهوم وابعاد التنمية المستدامة وعالقتها بتدوير النفاي هي مجموعة السياسات واالجراءات التي تُتّخذ لالنتقال بالمجتمع إلى وضع أفضل مفهوم التنمية المستدامة: ➢ باستعمال التكنلوجيا المناسبة للبيئة، لتحقيق التوازن بين بناء الموارد الطبيعية وهدر اإلنسان لها في ظّل سياسة التوازن، وكذلك هذا للمحافظة على أجيال محلية وعالمية إلى حاجات التعرض دون الحاضر تلبي حاجات المستقبل، والتنمية المستدامة تتضمن أفكار ورؤى متكاملة على العموم لتشترك في النقاط اآلتية: . ككك هي التي ال تشهد فيها المنافع انخفاضا بمرور الزمن 1 كك تكون اإلدارة لها دور في إدامة فرا اإلنتاج في المستقبل . 2 2017)ابو النصر ومحمد، كك هي التي ال يشهد فيها خزين رأس المال الطبيعي انخفاضا.3 : 81 .) عالقة تدوير النفايات الصلبة بأهداف التنمية المستدامة ➢ يمكن أْن تساهم عملية تدوير النفايات في تحقيق التنمية المستدامة، إْذ إّن أهداف التنمية المستدامة متكاملة مع بعضها يمكن تجزئتها، يقول )فاسكويز(مدير قطاع مجموعة الممارسات العالمية للتنمية االجتماعية والحضرية والريفية )من وال المستحيل إقامة مدينة مستدامة يمكن العيش فيها من دون وجود إدارة رشيدة للنفايات الصلبة ( ولم ي عْد الموضوع يقتصر لى المنا والصحة العامة، مما دعا الدول والمنظمات المتخصصة في البحث على المعالجات الفنية، فهناك آثار خطيرة ع وصل حجم القروض التي قدمها البنك الدولي لمشاريع 2000عن وسائل لخفض كمية النفايات وإعادة تدويرها، ومنذ عام لصلبة في مختلف أنحاء العالم ( برنامجا للنفايات ا329( مليار دوالر وذلك دعم وساند )4،5ادارة النفايات الصلبة إلى ) (. إّن توظيف أبعاد التنمية المستدامة في إعادة تدوير النفايات لتنمية الوعي االقتصادي واالجتماعي 100، 2019)نور، والبيئي، إْذ تُع دا النفايات من المشاكل العالمية التي باتت تشغل الكثير من المفكرين والباحثين بشؤون إعادة التدوير، إذْ أصبح العصر الحالي اكثر تقدماً وتطوراً عالمياً وتكنولوجياً سريعاً في شتّى مجاالت الحياة ومنها في مجال إعادة التدوير، ومن أجل مواكبة هذا التطور والتقدم وما تنتجه من قضايا وأبعاد مهمة في جميع الجوانب االقتصادية واالجتماعية والعلمية التطور على المجتمع في قضايا التنمية المستدامة وإعادة تدوير النفايات، قد تساعد البرامج التربوية إْذ ال بُد أْن ينعكس هذا والتعليمية المتعلقة بتوعية المجتمع بتحقيق التنمية المستدامة، وقد أصبحْت قضية إعادة التدوير من المواضيع الضرورية المجتمع، ونرى هناك اهتمام كبير من قبل األُمم المتحدة لقضايا االستدامة والملحة ِلحّل العديد من المشكالت التي يعاني منها (. 2020:235وإعادة التدوير واالهتمام بها)راضي،ومحمد، أبعاد التنمية المستدامة ➢ ق هناك ثالثة ابعاد للتنمية المستدامة يرتبط بعضها ببعض وهي: )االقتصادية، واالجتماعية والبيئية( وأّن تكاملها يحقِّ االستدامة الناجحة بين العناصر الرئيسية )النمو االقتصادي، العدالة االجتماعية و حماية البيئة( وهذا يعّزز الترابط بين (. 384: 2019أهداف برنامج األمم المتحدة، واألهداف الوطنية، ويمكن توضيح هذه األبعاد في ضوء النقاط االتية:)نور، ت .1 علكى ويعتمد االقتصادي: والخكدمات البعد الكسلع فكي نكصيبه في ضوء للفرد الرفاهية مستوى حسين الضرورية ت ويتطلب ذلك ليس فقكط اسكتعمال المكوارد الطبيعيكةت ولككن استعمالها االستعمال األمثل للموارد المتاحة إْذ يتم تحقيق أفضل عائد ممكن بأقل تككاليف ممكنة. سمات البشرية والعالقات الفردية والجماعية والمؤسسية وما تسهم البعد االجتماعي: ويشمل المكونكات وال .2 به مكن جهود تعاونية أو تتبنيه من إشككاليات أو تطرحكه مكن احتياجكات ومطالكب وضغوط على النظم االقتصادية . اسية واألمنيةوالسي american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 14 www.americanjournal.org األ .3 واالستعمال التعامل وحسن البيئة وسالمة حماية على ويرتككز البيئي: الطبيعيكة، البعد للمكوارد مثل وتوظيفهكا لصالح اإلنسان ت دون إحدال الخلل بالمكونات البيئيكة المتكضمنة لكألرض والماء والهواء وما يمكن فيها من مصادر طبيعية تسهم في بقاء الحياة البشرية والحيوانية والنباتية، وإدامتها وتقكدمها، وتحكول دون اسكتنزافها أو . تلوثهكا وضياعها البعد المؤسسي: هي المنهجية اإلدارية التي تزود المؤسسة باإلجراءات والسياسات التي تحدد االسلوه الذي .4 ليات بكفاءة.من خالله تدار العم المبحث الثاني تحليل نتائج النموذج القياسي واالختبارات االحصائية ( 1) ولينة الدراسة: الرداوال: ع والناتج المحلي االجمالي في سكككان واجمالي قيمة التدوير ، وكمية النفايات الموسككميةال( عدد 1إْذ يعرض الجدول ) (.2020-2008)للمدة تركيا نفايات تبعاً لعدد السكان تدوير الو الناتج المحلي االجمالي في تركيا (:1الردول ) عدد السكان السنة نسمة اجمالي تدوير النفايات في وفي الشتا الصيف طن ناتج المحلي االجماليال مليار دوالر 2008 67803927 25133696 746.6 2009 67803927 25373134 711.4 2010 67803927 26117539 771.8 2011 67803927 25.01352 857.6 2012 70586256 25279971 898.7 2013 70586256 24660863 820.0 2014 71356342 27780098 845.5 2015 71356342 26891098 861.5 2016 71356342 27801197 856.3 2017 71356342 29009745 851.5 2018 75893823 28011976 784.1 2019 77494839 27901096 761.4 2020 83614362 29031976 720.1 2021 84254321 28589311 740.6 http.//data.albankaldawli.org/indicator/ny.gdp.mktp.cdالمصدر: تحديد المتغيرات الداخلة في النموذج -ثانيا: سيكون هناك نوعان من المتغيرات :-1 التابع ) رالمتغي-أ dependent تركيا(:الناتج المحلي االجمالي في . المستقلة ) ات المتغير-ه independed :) . تركيافي عدد السكان-1 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 15 www.americanjournal.org . جمالي تدوير النفايات في الصيف وفي الشتاء وفي الشتاء في تركياا-2 : رموز المتغيرات الداخلة في البحث.2 y . تركيا= الناتج المحلي االجمالي في x1 .تركيا في السكان عدد = x2 . تركيا في الشتاء فيفي الصيف و النفايات تدوير اجمالي= المستعملة في البحث.: االختبارات ثالثا سيتم االعتماد على االختبارات التالية: القياسية من أجل اختيار افضل الصيغ السكون -1 سكون :stationarity testاختبار موضوع في أهمية لها التي االختبارات من يعد الداخلة في الدراسة إلى أي دراسة تحليلية تخ طبيعة المتغيرات ودقة نتائج التحليل، إذ يعد اخضاع المتغيرات ( ان السلسلة hoتلك المتغيرات من إذ استقرار السالسل الزمنية هل هي مستقرة ام ال، بناًء على فرض العدم ) ( فإنه ين على ان السالسل ساكنة ومستقرة ، فقد تم اعتماد اختبار h1ية غير ساكنة، أما فرض البديل )الزمن ، ومن خالل هذا adfالختبار schwatrtz information criterion (sic)ديكي المعدل ، حسب معيار ا االختبار إذا كانت القيمة المحسوبة االختبار يتم المقارنة بين القيمة المحسوبة والقيمة الجدولية، وحسب شروط هذ أكبر من القيمة الجدولية، فهذا يعني ان السلسلة الزمنية مستقرة وال تشمل على جذر الوحدة،او من خالل معنوية أما إذا تبين العكس فإن هذا يعني ان السلسلة الزمنية غير مستقرة وتشمل على جذر %(،5عند مستوى ) tاختبار (. 154153 :2015الوحدة )حمد، التكامل المشترك بأنه تطابق بين سلسلتين يعرف: cointegration testاختبار التكامل المشترك -2 ف التقلبات إللغاء إحداهما في التقلبات تؤدي بحيث اكثر أو منهجيةزمنيتين تعد األخرى، السلسلة التكامل ي المشترك من المناهج التي تستعمل للكشف عن طبيعة العالقة التوازنية بين المتغيرات الخاضعة لهذا االختبار هل هي مستقرة في المدى الطويل، والذي يتطلب أن تكون هذه المتغيرات غير مستقرة في مستواها ولكنها تتمتع ند أخذ الفرق األول أو الثاني، وحسب هذا االختبار فإنه يمكن ان يكون المتغير ساكنا إذا بدرجة من االستقرار ع وهناك اختباران لتحديد عدد متجهات التكامل المشترك وهما : اختبار األثر ،1( 0كانت درجة التكامل تساوي ) trace test واختبار القيمة الكامنة العظمى ،maximal eigen value ،(. 155154 :2015)حمد 2013)راهي، معادلة االنحدار الخ ي المتعد -3 : 227 :) y = bo + b1x1 +b2x2…….+bnxn +e bo. الحد الثابت للدالة أو معلمة تقاطع خط االنحدار مع المحور العمودي المتمثل بالناتج المحلي اإلجمالي : bi . معامالت االنحدار الجزئية أو الميول الجزئية : e (الخطأ العشوائي وهو الفرق بين القيمة الحقيقية ل :y ( والقيمة التقديرية ويعرف بالبواقي وقانونه العام : e = y-y^ x2) = 0 . ( و)x1( عندما تكون قيمة ) y( تمثل قيمة ) boان قيمة ) اختبار -4 f يستعمل هذا االختبار بهدف معرفة مدى معنوية العالقة الخطية المفترضة بين المتغيرات المستقلة -: (x1. x2. ….xk هادي( : هي الفرضيات من نوعين على يعتمد وهو التابع المتغير على ) ،واخرون 2013،(344 :. معنوية حسب الداللة المستعملة فهذا يعني ان قبول هذه الفرضية fفرضية العدم: وهي عندما تكون قيمة • b1 ho : b =2 والتي تن على عدم وجود فروق معنوية بين المتغيرات الداخلة في النموذج القياسي، اي ان: = 0 k= …..=b قيمة • تكون البديلة: وهي عندما قبو fالفرضية يعني المستعملة فهذا الداللة ل هذه غير معنوية حسب b 1h :1 الفرضية والتي تن على وجود فروق معنوية بين المتغيرات الداخلة في النموذج القياسي، اي ان : ≠ 0 k≠ …..≠ b2 ≠ b fتحسب قيمة تقارن مع قيمتها الجدولية لتحديد قبول او رفض فرضية العدم ومن ثم تقييم معنوية العالقة المقدرة في النموذج. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 16 www.americanjournal.org يعد من افضل االختبارات المهمة التي تستعمل في اختبار الفروق المعنوية بين المتغيرات -:tاختبار -5 على حيث يستعمل لتقييم معنوية المتغيرات (،ويقوم%5أو ) %1)الداخلة في النموذج الرياضي ويكون بداللة ) ( في نموذج انحدار خطي متعدد والذي يعتمد y( في المتغير التابع ) k….x 2.. x1xالمستقلة بصورة منفردة ) (. 3 :2008على فرضيتين)امين، معنوية حسب الداللة المستعملة فهذا يعني ان قبول هذه الفرضية tفرضية العدم: وهي عندما تكون قيمة • b1 ho : b =2 والتي تن على عدم وجود فروق معنوية بين المتغيرات الداخلة في النموذج القياسي، اي ان: = 0 k= …..=b قيمة • تكون عندما وهي البديلة: قبو tالفرضية يعني فهذا المستعملة الداللة معنوية حسب هذه غير ل b 1h :1 الفرضية والتي تن على وجود فروق معنوية بين المتغيرات الداخلة في النموذج القياسي، اي ان : ≠ 0 k≠ …..≠ b2 ≠ b tوبعد احتساه قيمة تقارن مع قيمتها الجدولية لتحديد قبول او رفض فرضية العدم ومن ثم تقييم معنوية النموذج المقدر. اختبار يستعمل عند وجود متغيرات كمية قابلة للقياس مثل الدخل القومي واإلنفاق هو -: اختبار بيرسون -6 والناتج المحلي االجمالي وغيرها من المتغيرات الكمية ، والهدف من استعمال هذا االختبار هو معرفة القومي قة بين المتغيرات المستقلة مع مدى العالقة التي ترتبط بها المتغيرات الداخلة في النموذج القياسي ، إذ يقيس العال التابع ، وكذلك عالقة المتغيرات المستقلة مع بعضها البعض، ومن شروط هذا االختبار هو أن تكون المتغير المتغيرات المستقلة مرتبطة مع المتغير التابع بعالقة اقوى من ارتباطها مع بعضها واال يصبح االرتباط متعدد القياسي، وضرورة أن تكون تلك العالقة وفق النظرية االقتصادية حيث اإليجابية اي مشكلة قياسية تصيب النموذج . : 295) ،2013والسلبية )هادي واخرون، هو اختبار يستعمل للكشف عن وجود ارتباط ذاتي في النموذج من : d-w)اختبار ديربن واتسون ) -7 كلما كان افضل وهذا يعني ان النموذج ال 2وكلما اقتربت قيمته من العدد 0-4)عدمه ، قيمته محصورة بين ) .(20 :2008امين، يعاني من وجود مشكلة االرتباط الذاتي والذي يستند على وجود فرضيتين اساسيتين هما:) ho : p = 0فرضية العدم : التي تن على انعدام االرتباط الذاتي • h1 : p ≠ 0لى وجود االرتباط الذاتي الفرضية البديلة: والتي تن ع • لبيان نسبة تأثير المتغير المستقل على المتغير التابع ويمكن هو اختبار يستعمل اختبار معامل التفسير: -8 ( ، إذ كلما اقتربت قيمته من الواحد 10بين ) ( وتكون قيمته rالحصول على قيمته من تربيع معامل االرتباط ) على دل كلما )الصحيح األصلي التحديد معامل ويستعمل التابع، المتغير تغير في المستقل المتغير -rدور squared( المعدل التحديد معامل يستعمل وأحد، مستقل متغير النموذج في وجود عند )adjusted rsquared ،6: 2016( عند وجود اكثر من متغير مستقل في النموذج القياسي )موسى .) مستعملة في بنا النموذج القياسي ال ريقة ال -: رابعا o.l.s)استعمل الباحث طريقة المربعات الصغرى االعتيادية ) وتعد هذه الطريقة من أفضل الطرق في بناء النموذج االمثل والتي تتطلب تحديد طبيعة العالقة الكائنة بين البيانات المتاحة والمتطلبات النظرية في المتغيرات خاصة وأخرى بالمدخالت المتعلقة الشروط من جملة تفترض والتي الدالة تركيب في الداخلة االقتصادية بالمخرجات: american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 17 www.americanjournal.org تقدير النموذج القياسي: -:خامسا نتائج اختبار السكون: -أ the unit test of stationnary ب ريقة ديكي فوللر الموسع ) adf ) :augmented dickeyfuller test ( نتائج اختبار جذر الوحدة للنموذج القياسي 2الردول ) المتغي ر القرار درجة المعنوية القيمة المحسوبة الفرق المستوى الثاني 1عند % 5عند % % 10عند y 0.131 غير معنوية 0.619 0.619 0.619 y 2.953 معنوية 0.00 0.00 0.00 x1 2.354 0.99 0.99 0.99 غير معنوية x1 -2.414 0.02 0.02 0.02 معنوية x2 0.204 غير معنوية 0.59 0.59 0.59 x2 0.966 5.937 معنوية 0.00 0.00 0.00 المصدر: الجدول من إعداد الباحث باالعتماد على نتائج البرنامج االحصائي eview12 . ( أن السلسلة الزمنية غير ساكنة عند المستوى، 2بناًء على نتائج اختبار ديكي فوللر الموسع فقد تبين من الجدول ) tإذ نجد ان قيمة وجود مشكلة جذر الوحدة المحسوبة غير معنوية عند جميع المستويات المعنوية وهذا يدل على tوأن السالسل الزمنية للمتغيرات الثالل مستقرة عند المستوى، أما بعد اخذ الفرق االول فقد وجدنا ان قيمة بالنسبة للمتغر التابع )نوية عند جميع مستويات المعنوية المحسوبة مع y( والمتغير المستقل )x1 اما المتغير ) x2المستقل ) للمتغيرات الثالل محل البحث السالسل الزمنية %( اي ان 10%( و)5( فانه معنوي عند مستوى ) التكامل المشترك ودراسة العالقة طويلة األجل ساكنة ومستقرة وال توجد مشكلة جذر الوحدة وعليه يمكن اجراء ويعني ان لها عالقة مع الزمن، ،وهذابين الناتج المحلي في تركيا وعدد السكان وكمية النفايات التي تم تدويرها وهو ما تؤكده القيمة المتزايدة للمتغيرات محل البحث. اختبار التكامل المشترك جوهانسن:-ب من المتغيرات متكاملة من الدرجة نفسها وترتبط بعالقة طويلة األجل ولتحقيق ذلك البد يشترط االختبار ان تكون توفر شرطين: إن كل المتغيرات الداخلة في النموذج مستقرة عند المستوى نفسه. -1 . 1( 0هذا المستوى يكون أكبر من )-2 القياسي ( نتائج اختبار التكامل المشترك لروهانسن للنموذج 3الردول ) trace test -اختبار األثر عدد مترهات التكامل (r المشترك ) القيمة المحسوبة القيمة الردولية عند 10 % المعنوية r =0* 45.796 29.797 0.00 r =1 19.816 15.494 0.01 r =2 3.841 3.372 0.06 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 18 www.americanjournal.org اختبار القيمة الكامنة العظمى maximal eigen vaule مترهات التكامل عدد (r المشترك ) القيمة القيمة المحسوبة الردولية % 10عند المعنوية r =0* 25.980 0.885 0.04 r =1 16.444 0.745 0.02 r =2 3.372 0.245 0.06 . eview12 برنامجالمصدر: الجدول من إعداد الباحث باالعتماد على نتائج ومن الجدول ) ( لجوهانسن، إذ يتضح maximum( والقيمة العظمى ) trace( عرض نتائج اختباري األثر )3 %، اي قبول الفرضية البديلة 10رفض فرضية عدم وجود أي متجه للتكامل المشترك عند مستوى داللة إحصائية ( وهي أكبر من 45.796التي تن على وجود تكامل مشترك من الرتبة صفر الختبار األثر إذ ان القيمة المحسوبة ) %، كما يتضح رفض فرضية عدم وجود أي متجه للتكامل 10معنوية ( عند مستوى 29.797الجدولية والتي بلغت ) البديلة التي تن على وجود تكامل مشترك من 10المشترك عند مستوى داللة إحصائية %، اي قبول الفرضية 19.816الرتبة واحد الختبار األثر إذ ان القيمة المحسوبة ) ( 15.494( وهي اكبر من القيمة الجدولية والتي بلغت ) %، وكذلك يتضح رفض فرضية عدم وجود أي متجه للتكامل المشترك عند مستوى داللة 10ند مستوى معنوية ع %، اي قبول الفرضية البديلة التي تن على وجود تكامل مشترك من الرتبة اثنان الختبار األثر إذ ان 10إحصائية 3.841القيمة المحسوبة ) ) ( وهي اكبر من القيمة الجدولية والتي بلغت 3.372 %،و نجد 10( عند مستوى معنوية المحسوبة القيمة الرتبة صفر من خالل مالحظة تكامل مشترك من تبين وجود العظمى الكامنة القيمة ان طريقة الجدولية والتي بلغت )25.980) القيمة اكبر من 0.885( وهي %، كما يتضح رفض 10( عند مستوى معنوية وقبول الفرضية البديلة هذا يعني %، 10فرضية عدم وجود أي متجه للتكامل المشترك عند مستوى داللة إحصائية 16.444وجود تكامل مشترك من الرتبة واحد الختبار القيمة الكامنة العظمى إذ ان القيمة المحسوبة ) اكبر( وهي 0.745من الجدولية والتي بلغت ) فرضية عدم وجود أي متجه رفض %، كذلك يتضح 10ى معنوية ( عند مستو المشترك عند مستوى داللة إحصائية البديلة اي%، 10للتكامل الفرضية الرتبة وقبول تكامل مشترك من وجود ( المحسوبة القيمة ان إذ العظمى الكامنة القيمة الختبار بلغت 3.372الثانية والتي الجدولية من اصغر وهي ) والرتبة الثانية %، وعليه فإن المتغيرات مجموعة من الرتبة صفر والرتبة واحد 10عند مستوى معنوية ( 0.245) وباستعمال االقتراح الثالث الذي ين على وجود ثابت وميل لدالة التكامل المشترك حسب اختبار جوهانسن وكما قة توازنيه طويلة األجل بين الناتج المحلي تم اختيار فترتان من االبطاء اتضح وجود تكامل مشترك، إذن توجد عال كمتغيرات مستقلة. عدد السكان وكمية تدوير النفايات سنوياكمتغير تابع و تركيااالجمالي في تقدير معادلة االنحدار الخ ي المتعدد للنموذج القياسي:-ج ومن خالل استعمال البيانات االحصائية المتوفرة وادخالها في برنامج eview12 وتبني لالختبارات االحصائية متغيراً مستقالً أول عدد السكانمتغيراً تابعاً تركياالمحلي االجمالي في المنهج العادي لتلك البيانات وتمثيل الناتج ً تم الحصول على معادلة االنحدار الخطي المتعدد اآلتية: متغيراً مستقالً ثانياً وكمية تدوير النفايات سنويا american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 19 www.americanjournal.org y = bo + b1x1 – b2x2 + e y = 1114.576 3.92906 x1 1.08 x2………1 1يتضح من المعادلة رقم ) بلغ ) ( أن ثابت الدالة y( وهي تمثل قيمة 1114.576 عندما تكون قيمة كل من x1 و x2 ) األولتساوي الصفر، أما ميل الدالة للمتغير المستقل x1 ) بلغت قيمته( فقد ( وهذا يعني أن زيادة 3.92906x1 y انخفاض بمقدار وحدة وأحدة سوف تودي إلى بمقدار ) -3.92906 بين عكسية( أي ان العالقة x1 و y x2الثاني وبلغت قيمة ميل الدالة للمتغير المستقل ( x2( وهذا يعني أن زيادة 1.08بمقدار وحدة واحدة تؤدي إلى yانخفاض بالمقدار) -1.08 بين المتغير عكسية( أي ان العالقة x2 و y التحليل االحصائي ، هذا فيما يخ للمعادلة، أما فيما يخ التحليل االقتصادي للمعادلة نستنتج من قيم معادلة االنحدار أن قيمة مجموع الناتج المحلي هي ) تركيااالجمالي في 1114.576 مساويان للصفر، وكمية تدوير النفايات عدد السكانعندما يكون دوالر مليار( بمقدار ) تركياالناتج المحلي االجمالي في انخفاض وأحد فهذا يعني نسمةبمقدار عدد السكان يزداد وكذلك عندما 3.92906 في نمو الناتج المحلي كموارد بشرية عدد السكان نسبة مساهمة انخفاض مما يؤدي إلى مليار دوالر( تركيا وأحدة فإن الناتج المحلي االجمالي في طنبمقدار كمية تدوير النفايات اإلجمالي بنفس المقدار، وعند زيادة بمقدار ) ينخفض سوف -1.08 التكاليف التي يتم تحملها عند القيام بعمليات من ياتي االنخفاض وهذه مليار دوالر( في االجمالي في نمو الناتج المحلي ايرادات تدوير النفايات مساهمة انخفاض وبالتالي يؤدي إلى ايات التدوير للنف . تركيا ( معايير جودة النموذج القياسي 4الردول ) معايير جودة النموذج القيمة المعنوية ----0.03 adjusted r-squared 0.00 5.028 t-bo 0.25 1.200t-b1x1 0.66 0.441t-b2x2 ----0.651 d-w 0.33 1.212 f المصدر: الجدول من إعداد الباحث باالعتماد على نتائج برنامج eview12 . ( أن قيمة معامل التفسير المعدل 4ظهرت من خالل النتائج في النموذج المقدر في الجدول ) adj r2 بلغت x1 ،x2( وهذا يعني ان المتغيرين المستقلين ) 0.03) % ( من التغير الحاصل في المتغير 3( تفسران حوالي ) yالتابع ) %( تمثل تاثير متغيرات اخرى غير مضمنة في المعادلة )دالة االنحدار 97) ( وان النسبة الباقية والبالغة من فقط %(3يفسران حوالي ) تركيا في وكمية تدوير النفايات عدد السكان الخطي المتعدد ( ، يتضح من ذلك ان تصادية لم اق %( فهي متغيرات وانشطة97والباقي ما قيمته ) تركياالتغير الحاصل في الناتج المحلي االجمالي في بنا إدخالها في المتغيرات ءيتم الصادرات االستيرادات وغيرها من البطالة التضخم القياسي من ضمنها النموذج االقتصادية التي تمارس تاثيرها على الناتج المحلي االجمالي. الجدول ) من خالل قيمة )4النتائج في ( ظهرت t للمعلمة )bo ( هي اصغر من ( 5.028المحسوبة والبالغة ( والبالغة ) 14%( ودرجة حرية )10الجدولية عند مستوى معنوية ) :h0 ( عليه ترفض فرضية العدم )1.7613 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 20 www.americanjournal.org bo = 0 ( ونقبل الفرضية البديلة )h1: b1 ≠ 0 وهذا يعني معنوية المعلمة المقدرة واثبات ذلك انها قيمتها في ) tالنموذج كانت عالية جدا، كما ظهرت قيمة ) للمعلمة ( b1 1.200المحسوبة والبالغة ) من الجدولية اصغر( هي ( والبالغة )14%( ودرجة حرية )10عند مستوى معنوية ) 1.7613 فرضية العدم ) نقبل( عليه h0: bo = 0 ) الفرضية البديلة ) ونرفض h1: b1 ≠ 0 معنوية المعلمة المقدرة )عدم ( وهذا يعني b1 والتي تمثل ميل المتغير ) (x1 له تاثير واضح على عدد السكان ليستاثير هذا المتغير المستقل على المتغير التابع، اي ان عدم مما يدل على ( ، كما ظهرت قيمة )تركياالناتج المحلي االجمالي في t للمعلمة )b2 0.441المحسوبة والبالغة ) من اصغر( هي ( والبالغة )14%( ودرجة حرية )10الجدولية عند مستوى معنوية ) 1.7613 فرضية العدم ) نقبل( عليه h0: bo = 0 الفرضية البديلة ) ونرفض ( h1: b1 ≠ 0( وهذا يعني عدم معنوية المعلمة المقدرة )b2 والتي تمثل ميل ) x2المتغير ) تدوير كمية النفايات مستقل على المتغير التابع، اي ( مما يدل على انخفاض مستوى تأثير هذا المتغير ال .تركياله تأثير واضح على الناتج المحلي في السنوية ليس ( فإن قيمة 4إن ما جاءت به النتائج في الجدول ) f)) المحسوبة بلغت( 1.212 ( من قيمة ) اصغروهي f ) %( ودرجة حرية ) 10الجدولية عند مستوى معنوية ) 14 للبسط والمقام والبالغة ) ( 2، 3.74 فرضية العدم نقبل( عليه (ho الفرضية البديلة ) ونرفض ( h1 هناك تاثير ليس معنوية العالقة المقدرة، بعبارة اخرى عدم ( التي تن على لمتغيرين ل x1,x2 على المتغير التابع y يرتبطان مع الناتج عدد السكان وكمية تدوير النفايات السنوية ال اي ان بعالقة معنوية ذات تاثير واضح فيما بينها وكان تركيا فيالمحلي االجمالي sig= 0.33 ان درجة وهذا يدل على يمكن االعتماد عليه ألغراض التخطيط والتنبؤ للمستقبل وال كفوءغير ( مما يجعل النموذج % 10من ) اكبر المعنوية في االجمالي المحلي الناتج في النمو السكانمن خالل زيادة تركيافيما يخ زيادة معدالت تدوير عدد وكمية التنمية المستدامة ف التخطيط والتنبؤ في اكمال النموذج ان يكون صالح في وبالتالي اليمكن لهذا ي النفايات سنوياً تركيا. ( الذي كشف عنه اختبار ) 4من الجدول ) (d-w ( 2وهي تبتعد من العدد )( .6510) والذي كانت قيمته المحتسبة , تقع بين )و dl=0.91( و )du=1.55 ( 14من القيمة الجدولية عند عينة البحث التي بلغت ) ( اي في منطقة الرفض اي ان ) مشاهدة df=12( ومتغيرين مستقلين اي ان )k=2 لذلك نرفض فرضية العدم ( ho ى ان والتي تن عل ونقبل الفرضية البديلة موجب يعاني من مشكلة االرتباط الذاتي النموذج h1 ارتباط عدم وجود التي توضح مشكلة ذاتي بين متغيرات البحث. اختبار بيرسون: -د الل مصفوفة االرتباط الجزئية والتي يمكن اثبات عدم وجود مشكلة االرتباط المتعدد في النموذج المقدر من خ المستقلة مع بعضها بعضاً، توضح مدى عالقة المتغير التابع مع المتغيرات المستقلة وكذلك مدى عالقة المتغيرات إذ كلما اقتربت قيمته من الواحد الصحيح دل على أن العالقة قوية بين المتغيرات. 5الردول ) للنموذج القياسي ( نتائج اختبار بيرسون x2 x1 y -0.270 -0.407 1 y 1 x1 1 0.391 x2 المصدر: الجدول من إعداد الباحث باالعتماد على نتائج برنامج eview12. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 21 www.americanjournal.org y( أن المتغير التابع ) 5ظهرت من نتائج الجدول ) يرتبط مع المتغير المستقل األول ) ( x1 سلبية الن ( بعالقة إذ بلغت ) الصحيحمن الواحد تبتعد إذ أنها االشارة سالبة وضعيفة ( مع المتغير y( ، ويرتبط المتغير التابع ) 0.407x2المستقل الثاني ) من الواحد الصحيح تبتعد إذ أنها الن االشارة سالبة سلبية( بعالقة ( ،اما 0.270-أيضاً إذ بلغت ) x1,x2عالقة المتغيرين المستقلين من عالقتهما مع المتغير التابع حيث واكبرمع بعضهما فانها كانت ايجابية ( مما يدل على وجود مشكلة االرتباط المتعدد الذي يفترض ان قيمة العالقة بين 0.391بلغت نسبة العالقة بينهما ) المتغيرات المستقلة كال على حدى مع المتغير التابع يجب ان تكون اكبر من العالقة مع بعضهما البعض، لذلك نجد الناتج المحلي االجمالي في مع ضعيفة سلبيةيرتبطان بعالقة تركيافي وكمية تدوير النفايات عدد السكانان كل من من العالقة مع بعضهما البعض. اصغروهي عالقة تركيا : االستنتاجات عدد طويلة االجل بين بالرغم من االختالف في سكون البيانات لمتغيرات البحث اال انه توجد عالقة توازنية .1 . تركياوالناتج المحلي االجمالي في كمية تدوير النفايات السنويةو السكان تاثير .2 النفايات السنويةو عدد السكان طفيف جداهناك الناتج المحلي االجمالي في كمية تدوير تركيا على . (t,r,fمن االختبارات التي تم استعمالها والتي هي كل من )ويتضح ذلك في زيادة الناتج المحلي االجمالي خالل سلبيادورا كمية تدوير النفايات السنويةو كل من عدد السكانيمارس .3 . سالبةمدة البحث ويمكن مالحظة ذلك من قيمة الميل التي كانت ال كفوء و غير من خالل نتائج النموذج التي كانت جميعها تتفق مع النظرية االقتصادية فان النموذج المقدر .4 يمكن االعتماد عليه الغراض التخطيط والتنيؤ للمستقبل. عدد السكان وزيادة كمية النفايات المدورة سنوياً لهما نفس المعلمات والنتائج ودرجة االرتباط يدل ان تزايد .5 على ان كل ما تغير السكان تغير تدوير النفايات الرتباطها الوثيق به. : التوصيات الحكومة .1 العملية التركيةعلى في البشري المال وراس المادي المال راس استخدام في التوازن تحقيق .ار في تلبية االحتياجات وفق الموارد المتاحةن هناك استقراالنتاجية لكي يكو يجب بث الوعي الثقافي واالجتماعي في تنظيم االنجاه حتى تتوافق زيادة السكان مع الموارد المتاحة. .2 في عملية تدوير النفايات حتى تنخفض تكاليفها وترتفع ايراداتها.استخدام طرق حديثة .3 المصادر: 1. ( مدحت، ياسين ومحمد، مدحت، النصر ومؤشراتها، 2017أبو وابعادها مفهومها ك المستدامة التنمية ،) المجموعة العربية للتدريب والنشر، الطبعة األولى، مصر. (، استراتيجية تدوير النفايات المنزلية الصلبة، دراسة تطبيقية على 2018)أحمد، ابراهيم نجالء عالء الدين، .2 والية الخرطوم، السودان. ، جامعة المنوفية ، spss(، التحليل االحصائي للمتغيرات المتعددة باستخدام برنامج 2008امين، أسامة ربيع ) .3 كلية التجارة، قسم اإلحصاء والرياضة، القاهرة، مصر. (، دور القطاع الخاا بين النظرية والتطبيق مع قراءة 2012سف وجميل، هاشم توفيق، )حاجم، محمد يو .4 (، العراق. 68التجاره التطبيقية العربية، مجلة كلية التربية االساسية، العدد، ) ، 1994( ، اإلنفاق الحكومي وأثره على التنمية البشري في الجزائر منذ عام 2015حمد، مخيف جاسم ) .5 ه في العلوم االقتصادية، جامعة القاهرة، معهد البحول والدراسات االفريقية، مصر. أطروحة دكتورا ( النفايات الصلبة كك تعريفها كك أنواعها كك طرق عالجها، الطبعة األولى، 2018الدغيري، محمد بن إبراهيم) .6 السعودية. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 22 www.americanjournal.org مة في اعادة تدوير النفايات (، توظيف ابعاد التنمية المستدا2020راضي، زهور جابر ومحمد، جاسم محمد، ) .7 (، العراق58وتنمية الوعي البيئي، مجلة الفنون واألده وعلوم اإلنسانيات واالجتماع، العدد) (، النفايات الصلبة كيف نتعامل معها ونفيد منها، سوريا. 2012عيسى، عبير ، ) .8 9. ( المنافع2017كريم، حيدر عيدان، تعظيم الخطية في البرمجة اسلوه استعمال النفايات (، تدوير اعادة من (، العراق.6(، المجلد )24الصلبة في محافظة كربالء، مجلة االدارة واالقتصاد، العدد ) (، التحليل المكاني لمشكلة النفايات الصلبة في مدينة 2019لفلوف، كفاء عبدهللا والكالبي، أنور صباح محمد ) .10 (، العراق.13، العدد )السماوة وسبل معالجتها، مجلة أورك للعلوم االنسانية (التقيم االقتصادي والبيئي لمشاريع مطامر النفايات البلدية باستعمال تحليل الكلفة 2014مخالني ،احمد حسام ) .11 والمنفعة ،سوريا . (، محاضرة في مادة االقتصاد القياسي، غير منشورة، كلية اإلدارة واالقتصاد، جامعة 2016موسى، ياسين ) .12 تكريت، العراق. مشروع في حالة دراسة، المستدامة التنمية تحقيق في ودورها الصلبة النفايات ، تدوير2019نور، خليل ابراهيم، .13 المحمودية في النفايات وتدوير فرز ، االحصاء التطبيقي، اسلوه 2013هادي، اموري كاظم والطائي، خالد ضاري والشكري، عبد المنعم كاظم )) .14 ،الطبعة األولى، الذاكر للنشر والتوزيع، االردن . spssتحليلي باستعمال التنمية المس 2016الياسري، حميد خضير جاسم، ) .15 البيئية والمالية لمعالجة انعكاساتها عن التأثيرات تدامة، (، العراق (، أثر ادارة عمليات تدوير النفايات الصلبة على تحقيق الميزة التنافسية، 2016يحيى، عمير، فازع بجاش ، ) .16 دراسة حالة مجموع نقل، األردن. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 123 www.americanjournal.org importance of the beekeeping sector in regional agriculture qulmurotov sohibjon jumaniyozovich university of information technology and management assistant of the department "economics" e-mail: sohibkulmurotov@gmail.com iskandarov suhrob ulug’bek o'g’li university of information technology and management educational course” economics " student of stage 2 e-mail: sohibkulmurotov@gmail.com a b s t r a c t k e y w o r d s in the world, 80-85% of plants are pollinated from the outside, and bees play a key role in this. beekeeping is a rapidly developing branch of agriculture, and it is noteworthy that it itself is at the same time divided into a number of independent scientific departments. currently, large-scale work is being carried out to develop the beekeeping sector with the initiatives of our honored president. beekeeping, beekeeping net, foreign pollination, bees, harvest, alfalfa, legumes, sunflower, fruit trees, pulses, acorns. introduction beekeeping is an integral, important branch of agriculture. this area serves to increase bee families, grow honey, wax, pollen and other beekeeping products, pollinate agricultural plants, increase productivity and improve the quality of fruit tree crops. also, the role of bees in the productivity and quality of seed in seed farms is incomparable. the demand and need for honey products grown by bees will continue to increase day by day. beeswax products are now being used in every field: i.e. industrial, confectionery factories, medical field, aircraft industry, rocket engineering, radio and television, and computer fields. today, the demand for beekeeping in uzbekistan and the preservation of its rational specialization in the cultivation of honey, which is a healing product, form the basis of our economy day by day in our independent republic. the beekeepers of the republic are given the strict task of increasing the production of honey at the expense of increasing the productivity of each bee family. the excellent nature and climatic conditions of our republic allow the successful development of beekeeping, as well as all areas of agriculture. nevertheless, at present, the development swing of the national economy network cannot adequately meet the growing demands of the population day by day. the importance of beekeeping in increasing the yield of agricultural crops is even greater. it is known that american journal of business management, economics and banking volume 21 february, 2024 p a g e | 124 www.americanjournal.org 80-85% of flowering plants in the world, pollinated from the outside. in the extreme pollination of these plants, bees play a key role, since the number of other types of pollinating insects is very small, and due to the fact that they cannot be transplanted to pollinate crops at the right time, bees are quite suitable for this. bees can be used when desired to pollinate the desired plants from the outside. this requires each beekeeper, and each leader, to care for the bee family under zooveterinary rules and to transplant the bees to areas where serasal plants often grow. the benefits of bees to nature are that in the conditions of our republic, the importance of bees in the pollination of agricultural crops is increasing every day, due to the expansion of the fields of acorns, alfalfa and legumes, fodder and pulses. he made many decisions about the development of the beekeeping industry. in this regard, the resolution of the cabinet of ministers of the republic of uzbekistan dated june 12, 2023 no. 239 “on additional measures for the support of the beekeeping network and the pollination of agricultural crops with bees”was adopted. with the help of this decision, beekeeping developed in our republic for a while, its material and technical support, personnel support work were strengthened. beekeeping is also of great importance in the implementation of the country's food program. the development and history of the development of beekeeping in the republic, based on the ideology of independence, was focused on learning as a holistic system. beekeeping is a rapidly developing branch of agriculture, and it is noteworthy that it itself is at the same time divided into a number of independent scientific departments. a deeper study of the biological characteristics of bees, which, of course, in selection – breeding work, gives the opportunity to preserve the beneficial properties of their farm as a breed and make extensive use of it. according to the decree of the president of the republic of uzbekistan “on additional measures for the rapid development of the beekeeping network in the republic and further support of beekeeping activities”, to provide a subsidy of 40% of the base calculation per month for each bee family during the pollination season; to provide the members of the association “beekeepers” with a subsidy; the association membership fee is set at 7% of the base calculation per bee family per year. it is noted that beekeeping cooperatives, which have provided a source of income in at least 100 households through beekeeping, will be exempt from paying income and property taxes for a period of 3 years from 1 july 2022. duty is also abolished for imported honey processing and packaging equipment, beekeeping inventory and equipment, beehive transport trailers, beehive production timber, materials, penopolyurethane, bottlers and spare parts. in order to develop the beehive family in the republic, the development and implementation of the rapid technology of honey production, the introduction of science and technology achievements, advanced experiments into beekeeping are taking place. work on creating new breeds of bees and improving their offspring is also an important issue. in front of the beekeepers of the independent republic, a comprehensive program is being prepared and introduced into production, overcoming the existing difficulties and opening a wide path to beekeeping and its development. references: 1. o‘zbekiston respublikasi prezidentining 2017-yil 16-oktabrdagi “respublikamizda asalarichilik tarmog‘ini yanada rivojlantirish chora-tadbirlari to‘g‘risida”gi pq-3327-son qarori. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 125 www.americanjournal.org 2. o‘zbekiston respublikasi vazirlar mahkamasining 2023 yil 12 iyundagi “asalarichilik tarmog‘ini qo‘llab-quvvatlash va qishloq xo‘jaligi ekinlarini asalari bilan changlatishga doir qo‘shimcha chora-tadbirlar to‘g‘risida”gi 239-sonli qarori. 3. o‘zbekiston respublikasi prezidentning “respublikada asalarichilik tarmog‘ini jadal rivojlantirish va asalarichilik faoliyatini yanada qo‘llab-quvvatlashga doir qo‘shimcha choratadbirlari to‘g‘risida”gi qarori. 4. isamuhamedov a.i. nikadamboev x.k. “asalarichilikni rivojlantirish asoslari”. toshkent. “sharq” nashriyoti, 2013. 5. qaxramonov b., isamuhamedov a., ballasov u., ergashev s., to’raev o.s. “shaxsiy yordamchi, dehqon va fermer xo’jaliklarida asalari oilalarini parvarishlash”. toshkent, 2009. 6. https://lex.uz. 7. https://uz.beekeepers.uz/novosti-2/news post/asalarichilikning asosiy korsatkichlari. 8. https://uz.beekeepers.uz/ o‘zbekiston asalarichilari uyushmasi sayti. https://uz.beekeepers.uz/novosti-2/news american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 170 www.americanjournal.org the role of human capital in the development of the country's economy з. к. рахимов самарқанд иқтисодиёт ва сервис институти “менеджмент” кафедраси phd, доцент в.б. a b s t r a c t k e y w o r d s the article describes the theoretical and practical aspects of human capital in the development of the country's economy. the data was compiled based on the author's observations and analysis of foreign literature. human capital, management, structure, system, education, advanced training, efficiency, effective, factor, quality, competition, commerce, network, development, employment, infrastructure introduction the structural social economic reforms taking place in the republic of uzbekistan became the basis for the introduction of modern approaches in the development of industries. today, the achievements achieved in our country testify to the need for the scientific and practical skills of our personnel working in the fields of production and service, as well as their experience. education and skills training increase labor productivity and, as a result, lead to higher wages. investing in human capital is an important means of increasing labor productivity. it goes without saying that the simplest indicator of the quality of the workforce is the level of education. currently, 80 percent of those employed in the economy of our republic have higher and secondary special education. world experience shows that intensive development has been the impetus for the modern development of the country's industries, rather than extensively developed countries. therefore, countries such as the united states, germany, and great britain changed from extensive development to intensive development in 1870-1914, developed scientific innovations of the next generation and applied them in practice, and economic development was more effective 1. 1bozorov e., khatamov o.k., avliyakulov a. economic growth. reports text.: termiz, 2009. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 171 www.americanjournal.org literature analysis one of the first scientists who analyzed the concept of "human capital" was the american economist jacob mincer 2. theodore schultz and gary becker were among the economists who were responsible for the development of this concept in practice 3. at the same time, scientists such as r. dornbush, s. fishera, k. schmanlezi, r. solow, l. dublin, f. kram, i. fisher, s. h. forsyth, "human capital", "personal capital" and conducted several scientific researches about the impact of the new generation on the future economic development 4. economists of our country m.q.pardaev 5, a.olmasov, a.vahobov 6, k.kh.abdurahmonov 7, n.r.narzikulov 8and others conducted research on the development of "human capital". research methodology the method of historical and monographic observation was used to explain the scientific content of the article. through these methods, in the effective development of the economy, the possibilities of meeting the growing needs from limited resources and the necessity and importance of using human capital in the present and in the future have been shown. analysis and results regardless of the type of activity, the human factor is important. a person brings social and economic benefits in exchange for the knowledge and skills he has accumulated during his lifetime by theoretically and practically studying the environment. this requires paying special attention to the development of human capital for an economically developing country, enterprise and society. it is known that the existing countries in the world have gone through different stages of development. however, regardless of any system, attention to the population and their living conditions is unique. have found it effective to shift from extensive 9to intensive development 10as their population grows and they are faced with finding ways to use the limited resources efficiently. however, one of the main consequences of extensive development: in the period of such a system, due to the lack of attention to human capital, there was only an increase in attention to material needs at the expense of existing resources, which led to the creation of few innovations and discoveries. for example, western countries switched from extensive growth to intensive growth in the first half of the 20th 2 mincer j. investment in human capital and personal income distribution архивная копия от 26 января 2019 на wayback machine//journal of political economy, vol. 66, no. 4 (aug., 1958), pp. 281—302. 3 schultz t.w. investment in human beings. — chicago: university of chicago press, 1962. becker g.s. investment in human capital: a theoretical analysis//journal of political economy, vol.70, no.5, part 2, 1962, pp. 9–49 — doi 10.1086/258724. 4 https://nlr.ru/news/20170427/haikin.pdf 5m.k. pardaev thesis entitled "concepts on labor in the conditions of a market economy". samarkand. samki 1997. 59 p. 6olmasov a., vahobov a. economic theory. textbook. tdiu. t.: economy and finance, 2014. 226 p. 7abdurakhmonov k.kh. labor economy. textbook. mehnat publishing house, 2004. 204 b. 8narzikulov n.r., muhammedova o.h., bakoeva i.a. economy of human resources. (learning) t.: tdiu, 2004. 7 pages. 9the way of extensive development is the way to increase the volume of production at the expense of quantitative factors of economic growth (additional recruitment of labor force, expansion of cultivated areas, increase of production of raw materials, construction of new facilities). http://banki.tomsk.ru/pages/dictionary/ 10the intensive development path is one that ensures a qualitative understanding of the necessary tasks, their rationalization, and endless improvement until the technology is completely mature. then the technology changes completely for the next development. https://mostovoy.livejournal.com/55704.html https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://web.archive.org/web/20190126221201/https:/karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://ru.wikipedia.org/wiki/wayback_machine http://marbles.sonoma.edu/users/c/cuellar/econ421/humancapital.pdf https://nlr.ru/news/20170427/haikin.pdf http://banki.tomsk.ru/pages/dictionary/ https://mostovoy.livejournal.com/55704.html american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 172 www.americanjournal.org century. according to the information of the dutch economist ya. tintergen, the ratio of extensive and intensive growth in 1870-1914 was as follows (table 1). 1-jadval11 iqtisodium ўsishda extensive va intensive omillarning nisbati mamlakat usishning extensive / intensive omillari % buyuk britannia 80/20 germany 60/40 ақш 73/27 as these countries began the transition period from extensive growth to intensive growth, their economic growth indicators began to increase as a result of the introduction of innovations. later, the american economist r. solow found out that technical progress, that is, intensive growth, caused more than 80 percent of gdp growth in the usa in 1909-1949 12. in the 1970s, the economic growth of the united states and other developed countries slowed down. the main reason for this was the decrease in the growth rate of labor productivity. in the 1980s and 1990s, this rate increased somewhat, but it did not reach the level of the 1960s, which was described as the "golden age of rapid economic growth." economists explain the decrease in the growth of labor productivity as a result of a number of reasons 13. during the former soviet union, the transition from extensive to intensive growth rates was planned only in the late 1980s and early 1990s. this movement had become one of the main tasks of the period of reconstruction that began in the mid-80s . in the 10th -11th five years (1975-1980, 1981-1986), economic growth in the country almost stopped. the reason for this is that the extensive factors of economic growth, i.e. the flow of labor force, extraction of natural resources, the growth of the income of enterprises and the financial resources of the state have stopped 14. from the early days of independence, our country began to pay special attention to science, technology, culture and traditions in the restoration of its economy. due to approaches to human and human capital, the gdp of the country began to increase sharply in a short period of time. since the second half of the 1990s, there has been an increase in the application of modern technologies in the production and service sectors, and as a result, an increase in the quality of products, an increase in the range of substitute goods, and the introduction of remanufacturing. the law "on education" adopted in the republic of uzbekistan on august 29, 1997 created an opportunity to develop human capital, increase labor productivity and use new technologies in industries.15 nowadays, digital technology, green economy and human resources management are getting more and more attention in our country. due to digital technologies, the study of foreign experiences in the further development of human capital and their practical application are developing well. 11 bozorov e., khatamov o.k., avliakulov a. economic growth. text of reports.: termiz, 2009. 12 in that place. 13 in that place. 14 in that place. 15 https://lex.uz/docs/16188 https://lex.uz/docs/16188 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 173 www.americanjournal.org in the development of our economy, due to the use of advanced foreign experiences in the training of personnel, our short-term experiences show that in practice new personnel attract innovations and the formation of innovations increases. conclusions and suggestions: human resources are an important factor in effective and qualitative development of the country's economy. foreign experiences show that efficient use of resources is becoming one of the main problems in the process of current economic reforms. therefore, intensive development, inventing modern technologies and providing them with all-round support in the training of young specialists, increasing attention to education and training, innovations can bring positive results in the production and service sectors of the state in the coming years. based on the above, the following can be suggested for increasing human capital in our country: to explain to them the social and economic importance of human capital in the development of human resources; improving organizational and economic mechanisms for the development of human capital; application of motivational processes in the development of human capital; creating conditions for further study of the experience of economically developed countries and their practical application; ensuring the cooperation of national educational institutions with foreign educational institutions; expanding the visit of specialists from leading production and service enterprises in foreign countries to our country and the passing of master classes. references 1. bozorov e., khatamov o.q., avliyakulov a. economic growth. text of lectures.: – termiz, 2009. 2. mincer j. investment in human capital and personal income distribution archived copy on january 26, 2019 at the wayback machine //journal of political economy, vol. 66, no. 4 (august, 1958), pp. 281-302. 3. schultz tw investment in human beings. chicago: university of chicago press, 1962. 4. becker gs investment in human capital: a theoretical analysis //journal of political economy, vol.70, no.5, part 2, 1962, pp. 9–49 doi 10.1086/258724 . 5. m.k. pardaev thesis entitled "concepts on labor in the conditions of a market economy". samarkand. samki 1997. 59 p. 6. olmasov a., vahobov a. economic theory. textbook. tdiu. t.: economy and finance, 2014. 226 p. 7. narzikulov n.r., muhammedova o.h., bakoeva i.a. economy of human resources. (learning) t.: tdiu, 2004. 7 pages. 8. https://lex.uz/docs/16188 9. https://nlr.ru/news/20170427/haikin.pdf https://karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://web.archive.org/web/20190126221201/https:/karollgomez.files.wordpress.com/2014/10/mincer1958.pdf https://ru.wikipedia.org/wiki/wayback_machine http://marbles.sonoma.edu/users/c/cuellar/econ421/humancapital.pdf https://lex.uz/docs/16188 https://nlr.ru/news/20170427/haikin.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 98 www.americanjournal.org oil price shocks and their impact on economic activity in iraq basman kamel al-ardawi al-furat al-awsat technical university/ karbala technical institute inkre.bam@atu.edu.iq a b s t r a c t k e y w o r d s this research aims to shed light on the most important and prominent economic problem that iraq suffers from, which is its dependence on crude oil exports to finance its current and investment expenses and maintain the value of the national currency, as iraq’s non-oil exports are very limited. therefore, the research problem focuses on the fact that the iraqi state depends almost entirely on oil revenues to finance public expenditures, and since oil is a commodity that can be depleted shortly and oil prices are constantly fluctuating, this means that iraq’s economy is not sustainable and that it will be exposed to ongoing crises and perhaps to a complete collapse of economic conditions. to obtain clear results that cannot be doubted, the study included annual data from the year 2004 to the year 2022. the research included a group of dependent variables, including economic, financial, and monetary, that would give a clear vision of the problem regarding oil prices, which represents the independent variable, and it was adopted. on the descriptive analysis of the data table to give a general and clear view of the impact of oil prices on the dependent variables, the research reached a set of conclusions, the most important of which is first: the significant decline in oil prices, i.e. less than $50, negatively affects all economic indicators, the most important of which are the central bank of iraq’s oil reserves. foreign currencies. secondly: when there is a significant decline in state revenues due to the decline in oil prices, the greatest damage is to investment spending, not current spending. this means that the segment most affected are non-employees, and they are multiple categories. the most important recommendations are: the developed countries are working hard to gradually abandon fossil fuels in the future or significantly reduce dependence on them. they have set time programs for this goal. on the other hand, we must develop strategic plans to gradually reduce dependence on oil so that we notice a difference year after year. oil price shocks, iraqi economy, public expenditures american journal of business management, economics and banking volume 21 february, 2024 p a g e | 99 www.americanjournal.org introduction research problem the iraqi economy faces a recurring problem related to the ability of successive governments after 2003 to finance their current and investment public expenditures in a manner consistent with general plans and the current and future needs of society. this problem is due to iraq’s reliance primarily on revenues from the sale of crude oil to finance public expenditures and maintain the value of the currency. patriotism. research hypothesis the research has one main hypothesis, which is to know the extent of the impact of oil price shocks on economic, financial, and monetary variables. research objective the research aims to identify the impact of oil price fluctuations on the iraqi economy, what is the economy’s ability to withstand these shocks, and what are the proposed solutions to overcome this major problem. the introduction the iraqi economy is suffering a lot. he has a chronic disease that makes him barely walk, and we need to run to keep pace with the world and provide the many needs that the country needs in light of the large increase in population. one of the basic symptoms of this chronic disease is the state’s heavy dependence on its foreign currency revenues for exporting crude oil. when looking comprehensively at the iraqi situation and comparing it with the situation in other countries, we can see beyond doubt that all members (sectors) of this country are suffering from a problem in performing their functions. in today's world, which is led by science, not speculation and speculation, achieving sustainable economic development requires all sectors to work efficiently according to scientific theories, policies, methods, and procedures, all of which work according to a strategic plan formulated in an ideal way that suits the general situation of iraq. therefore, this research sheds light on this main problem, which is the dependence of the country’s general budget on crude oil revenues and the impact of oil price fluctuations on a group of economic and financial variables, the most important of which are oil and non-oil revenues, gross domestic product, inflation, unemployment, and the central bank’s foreign currency reserves. in the first section, we talked about the nature of oil, the price of oil, the factors that affect oil prices, and oil price shocks. the second section focused on analyzing annual data for the period from 2004 to 2022. this means that the research included the entire period of what is known as the new iraq. the third section was limited to conclusions and recommendations. the first topic crude oil crude oil is the most important strategic commodity among the commodities involved in international trade and the most traded in global markets in terms of trading value and trading volume. crude oil is a fossil fuel that may be from the remains of animals and plants that were buried millions of years american journal of business management, economics and banking volume 21 february, 2024 p a g e | 100 www.americanjournal.org ago under sedimentary layers in the earth and the seas. as a result of anaerobic bacteria and increased pressure and temperature, these residues turned into hydrocarbons. crude oil is a mixture of hundreds of different types of hydrocarbons with small amounts of other chemical compounds such as sulfur, nitrogen, and oxygen. hydrocarbons are organic compounds composed of hydrogen and carbon atoms. they vary in number and arrangement of carbon atoms, which may be in the form of straight or branched chains or the form of closed rings. oils differ from one field to another as a result of the different conditions and complexities in which the carbon and hydrogen atoms interact to form the petroleum substance. (al-hasnawi, 2006: 2). crude oil is found in underground reservoirs at depths ranging between (3000-500) meters. for oil reservoirs to exist inside the earth, permeable layers must be available for the crude oil to penetrate through, in addition to the availability of rocky oil traps that prevent the oil from exiting the surface of the earth. these traps may be structural. they arise as a result of twisting and fractures in the layers of the earth. these traps take the form of domes (anticline traps) or the form of broken layers (fault traps) in which crude oil collects. these oil traps may be stratified (stratigraphic traps). they produce... about changes in the layers of the earth in a way that prevents the movement of crude oil and then it collects to form the oil reservoir. the total oil reservoirs are called the oil field, and the process of stabilization of the oil in the reservoir is followed by the process of separation of water and gas from the oil liquid due to the difference in density (density), so the gas becomes at the top of the reservoir, it is followed by oil, then water. the separation process is not complete, as some gas remains dissolved in the oil, especially when the amount of gas increases, which causes an increase in pressure inside the reservoir. the same is true for oil and water, the separation is incomplete (alhiti, 2000:38) oil price and crude oil market the oil price means the monetary value or monetary form of a barrel of crude oil in the american standard of (42) gallons, which is equal to (3.78) liters and expressed in the american monetary unit, the dollar. despite all the attempts, ideas, and practical procedures to find an alternative monetary unit through the names of the oil dollar and the dinar. the standard price, a basket of major currencies, and special drawing rights, but it did not succeed, and the barrel remained linked to the us dollar. the oil price has many types, including the announced price, the realized price, the tax cost price, the reference price, and the spot price (al-hiti, 2000: 120). crude oil, whether physical or financial, is largely traded on the otc market, that is, on the unregulated stock exchange. this trading is compatible with the nature of oil, which is characterized by heterogeneity, which requires designing special contracts for each blend. about 90% of oil is traded under medium and long-term contracts. the term and the rest are in spot contracts. oil contracts usually last from one to four months, and this is what distinguishes oil from other commodities such as gold and gas, as the delivery period does not exceed 10 days. crude oil is also traded on organized stock exchanges such as the new york stock exchange (nymex), which trades crude oil. west texas and the international stock exchange (ice) and most contracts on these two exchanges are settled financially without physical delivery occurring (stephanie & james, 67: 2012) american journal of business management, economics and banking volume 21 february, 2024 p a g e | 101 www.americanjournal.org the reference price of oil due to the presence of many different types of oil, this leads to the difficulty of setting a specific price for each type. instead, reference is made to a specific number of prices, which are types of oil represented by brent crude, american crude, dubai oil, and oman oil. reference oil types 1brent crude oil brent blend is a light, sweet crude oil produced in the north sea within the territorial waters of the united kingdom, and is considered the reference in pricing most crude oils. this crude oil serves as a reference base for approximately 50 million barrels of crude oil produced daily, and most of the crude oils priced compared to brent are purchased in europe. about 20% of the crude oil it imports to the united states of america amounts to about 10%. one million barrels per day is priced compared to brent. the crude oil that makes up the brent mix is a production mix of (19) oil fields, and although the amount of brent crude production does not exceed 1% of global production, it is considered a reference for pricing about two-thirds of global production. of oil (stephanie & james, 2012: 67). 2west texas intermediate crude hg, sd' (wti) american oil is a sweet and light oil because it contains a small percentage of sulfur and has a low density relative to the density of water, so it floats on water. american light crude oil is considered a basic standard for pricing crude oil in north america, and it is extracted from oil fields in the united states, specifically in the state of texas. louisiana and north dakota, then it is transported for delivery via a pipeline extending to the city of cushing, which is considered an important center at the intersection of a large group of oil pipelines for export to american ports or various international ports. the new york stock exchange has adopted in its contracts the designation of west texas crude oil based on any mixture that has the same specifications, whatever the state that produces it (horsnell and mabro 1993: 227-228). 3oman crude the sultanate of oman has been producing oil for about 100 years and is currently producing approximately one million barrels per day. oil is produced in oman by the oman development company and occidental petroleum company, which is considered the second largest oil producer in oman. shell comes in third place, then the italian company eni. oman has two advantages over its neighbors are the first gulf countries: the oil export ports are located outside the strait of hormuz, which makes them close and open to global markets. secondly: the sultanate of oman is not a member of opec and therefore has high flexibility in controlling the amount of production (al-hinai, 2019: 10) 4dubai crude dubai crude is a medium-density crude oil with a sulfur content of up to 2%. it is considered one of the reference standards in determining oil prices, as crude is considered a reference basis for pricing asian oil supplies. the production quantity of dubai crude is about three million barrels per day, and dubai crude is characterized by its rapid arrival. to global markets (horsnell and mabro,1993:207). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 102 www.americanjournal.org factors affecting the price of crude oil there are a group of different factors that affect crude oil prices and make them constantly fluctuate. these factors are: 1global supply and demand for crude oil: the supply and demand for oil is considered one of the most important factors that affect global oil prices, as the price is determined according to the monthly supply and demand for the different types of oil, whether light, medium, or heavy, as well as the supply and demand for oil derivatives, as most of the oil production is transformed into oil derivatives such as gasoline and kerosene, and these derivatives are affected by various other factors such as weather, economic activity, etc. opec’s production is also considered one of the important factors in determining the global price because opec’s production represents about 36% of global production and has a great ability to control the price because it is subject to a single and considered decision issued by opec (al-marsoumi,2021: 6). 2global economic growth: oil prices are greatly affected by global economic growth because a decrease in economic growth leads to a decrease in demand for oil and derivatives in general, because a decrease in economic growth means a decrease in the level of production for all companies in various sectors, and these companies consume oil either directly or indirectly. directly through its use of energy and means of transportation, the decrease in economic growth leads to a decrease in wages and profits and thus a decrease in families’ demand to buy cars and travel, which directly affects the oil demand (soumyananda, 2004: 432). there are countries where economic growth greatly affects demand. these countries are the large industrial countries that import large quantities of oil, such as china, which imports about 10 million barrels per day, the united states, which imports about 9 million, india, about 5 million barrels, japan, and south korea, about 3 million barrels. millions of barrels per day for each. it is worth noting that there is a reciprocal relationship between economic growth and oil prices. at a time when global economic growth affects prices and leads to their decline, the rise in oil prices to large levels leads to an economic recession because it leads to global inflation, which reflects negatively on the economy. global (saleh & etl, 2013: 81). 3global oil stock: what is meant here by oil stock is not the stock in the ground or the oil fields, but rather the stock of crude oil after extraction and the stock of petroleum derivatives. the best example of this factor is what the energy information administration in the united states announces every week, as it presents a weekly report. regarding crude oil stocks and derivatives, it can be seen that oil prices were affected negatively or positively immediately after the announcement of this report. 4liquidation margins: this means the profits of liquidation companies, as the process of liquidating crude oil and converting it into various derivatives have multiple costs, and these costs are affected by various factors such as the cost of transportation, taxes, and wages. therefore, the profit margins obtained by the owners of refining companies and the supply and demand for oil derivatives directly affect the prices of crude oil (al-marsoumi, 2021:7). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 103 www.americanjournal.org 5geopolitical and climatic factors: many geopolitical factors affect oil prices, whether through their impact on production or consumption. there are many real examples. the sanctions on iran greatly affected prices because they led to a decrease in production by about 2 million barrels, and what happened in iraq during the siege and occupation greatly affected the oil supply and the disturbances that occurred from time to time in the sharara field in libya or the american sanctions on venezuela and other events. also, climatic factors, such as hurricanes that strike ports, lead to the disruption of supplies and sometimes stop the work of drilling rigs operating in the seas and oceans. 6the price of alternatives to oil: oil is mainly used as fuel and energy, and there are a group of alternatives, but what distinguishes oil is its low cost compared to those alternatives, but when the prices of alternatives decrease due to increased production or the discovery of new technologies that reduce costs, the demand for oil decreases, and one of these alternatives is natural gas. coal, biofuels, hydrogen, lithium batteries, hydroelectric and solar energy, etc. (saleh & etl, 2013: 83). 7the value of the us dollar: what is meant by the value of the dollar is the exchange rate of the us dollar against other currencies, and there is an indicator that expresses this value called the dollar index. the value of the dollar directly affects all commodities that enter into international trade, especially crude oil, because crude oil and basic commodities it is priced and evaluated in us dollars according to the bretton woods agreement, and this matter continues to this day, as the dollar is the first global currency, and the economic and political strength of the united states has helped to continue this situation, which is what the global economy has become accustomed to remain stable. oil price shocks oil price shocks mean the large fluctuations that occur in crude oil prices as a result of multiple factors mentioned above. figure no. (1) shows the oil price shocks and the reasons that led to those shocks for the period from 1970 to the beginning of 2024, as we note that price shocks mostly occurred either as a result of wars and sanctions or because of economic and financial crises. as is known, oil plays a very important role in the global economy, as it is the most traded commodity in international trade in terms of quantity and value. the importance of oil and its impact on the global economy comes from it being the main energy source for most means of transportation and power generation, and this is what makes it an essential element in production and trade in general. in general, it affects costs directly (bello, 2013:3). when oil rises significantly, it hurts growth in consuming countries and has a positive impact on consuming countries. high prices affect consuming countries on the demand side and the economic supply side. on the supply side, it leads to a decrease in supply due to the rise in supply chain costs and wages. as for the impact of high oil prices on the demand side, it is concentrated in a decrease in real income or net income after excluding transportation and energy expenses, which leads to a decrease in spending on consumption and investment and thus the occurrence of recession (ana & etl, 2013: 3-4). an example of how high oil prices lead to stagnation and inflation in consuming countries is what happened in the united states in the 1970s, when high oil prices led to significant stagnation and inflation that lasted for several years (lutz, 2014: 134). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 104 www.americanjournal.org figure (1) oil price shocks and their causes from 1970 to 2023 source: prepared by the researcher based on the chart (www.economist.com) the second topic the impact of oil price shocks on the iraqi economy table no. (1) lists for us the annual data for the period from 2004 to 2022 for oil prices and the most important economic, financial, and monetary variables in iraq. it gives a comprehensive and clear picture of the iraqi economy. the second column in the table shows oil prices and the large fluctuations that occurred in prices over 19 years. we talked about we explained these fluctuations and their causes in figure no. (1). the third column shows iraq’s exports of oil and derivatives. as is known, the quantity of exports is almost constant on average, ranging between 3 to 3.5 million barrels. therefore, the large fluctuation in the value of exports is primarily due to the fluctuation of the price. the fourth column shows the total non-oil exports to iraq, that is, the private and government sectors, and in the best of circumstances they did not reach half a billion dollars, that is, they are almost fixed within a very small value if measured by the volume of imports, and this is a big problem, as we hardly export anything. the fifth column shows imports in billions of dollars. it can be noted that imports constitute about 60% or more of the value of total actual expenditures. this means that iraq depends on imports to a very large extent to meet its various needs. the sixth column shows the gross domestic product. it can be noted that the growth in the gross domestic product is very weak. the gross domestic product in 2013 is almost the same as in 2022, that is, after nine years. there is no clear growth in the gross domestic product. this is a strange case in an oil-producing country. the gross domestic product must be constantly rising. even if it includes periods of no growth or negative growth. the seventh column shows the unemployment rate in iraq for those over 15 years of age, which has been continuously rising since 2008, when it was 8.4%, until 2022, when it reached 16%. this means that the economy is deteriorating because the unemployment rate is one of the most important economic variables that reflects the state of the economy. the eighth column, shows the annual inflation rate, as we note that in the first years, it was high due to the employment that occurred and the raising of fuel prices, then it began to decline, and this is normal because inflation is linked to economic growth and employment, but the problem is that those in charge of monetary policy do not know that inflation is the companion of economic growth, so they understand http://www.economist.com/ american journal of business management, economics and banking volume 21 february, 2024 p a g e | 105 www.americanjournal.org it. they fight inflation in periods of recession and recovery, and this is a big problem. the ninth column shows the central bank’s foreign currency reserves. it can be noted that the more revenues exceed total expenditures, the higher the reserves, and vice versa, because the primary source of reserves is the export of oil. in contrast, the more imports increase, the fewer the reserves. the tenth column shows the currency auction price or the selling price of the dollar before. the central bank for banks, companies, and merchants. it can be noted that we adopt a somewhat fixed exchange rate regardless of the economic situation, and this in itself is a big problem, as this rate must change according to the state of the economy and long-term economic planning. the eleventh column shows the currency issued by the central bank, which is constantly rising, and the reason may be due to internal government borrowing in recent years. as for the twelfth column, it shows non-oil revenues, which are almost constant and do not exceed 8 billion dollars at best, and most of them come from taxes and fees. the lack of these revenues and their failure to increase despite the increases in the budgets, especially investment, indicates the presence of a structural defect in the iraqi economy. as for the thirteenth column, it shows the government’s actual expenditures, which are divided into current and investment expenditures, as shown in the table. the problem that can be observed is that investment expenditures are constantly decreasing and current expenditures are constantly increasing. this is a big problem if it means that spending on services is constantly decreasing, which in turn leads to a decrease. investments of all kinds. table (1) represents the independent variable (oil price) and the dependent economic, financial, and monetary variables sources : central bank of iraq, annual statistical bulletin, and economic reports. iraqi ministry of finance, federal budgets. brent crude prices exports of oil and derivatives (one billion دوالر( non-oil exports ($ billion) total imports (billion dollars) gross domestic product (billion dollar) unemployme nt rate % annual inclusion rate % central bank reserves (billion dollar) average auction price of the coin exported currency (trillion dinars) non-oil revenues actual state expenditures (billion dollars) current year's spending publicا investment spending 2004 36 17.45 0.11 23.3 24.38 26.8 27 7.9 1480 8.02 4.9 21.84 18.54 3.3 2005 51 23.5 0.11 23.5 41.1 17.93 37 12.2 1470 10.25 4.05 24.47 19.67 4.8 2006 72 23.52 0.12 20.3 65.50 8.78 53.7 23.72 1460 11.9 10.08 26.7 24.33 2.37 2007 76 39.3 0.25 39.7 88.84 8.65 -10.1 34.47 1217 15.63 3.67 28.58 25.78 2.8 2008 136 63.1 0.30 30.17 131.61 8.40 12.7 50.07 1172 21.30 5.19 50.2 37.49 12.71 2009 54 39.32 0.11 38.43 111.66 8.49 6.9 44.33 1170 24.16 7.8 44.92 35.16 9.76 2010 80 51.9 0.17 43.91 138.52 8.34 2.9 50.6 1170 27.50 7.24 59.98 43.48 16.4 2011 112 79.9 0.22 47.8 185.75 8.15 5.8 61.02 1170 32.15 8.7 .2677 65.15 12.08 2012 110 94.85 0.27 56.23 218.10 7.97 6.1 70.04 1166 35.78 7.15 77.23 53.28 23.94 2013 108 93.90 0.29 59 234.64 9.27 1.9 90.47 1166 40.63 4.2 91.1 68.9 22.2 2014 102 89.54 0.21 59.34 228.82 10.59 2.2 77.35 1166 39.88 7.2 71.4 62.02 9.2 2015 58 51.1 0.19 48.01 178.8 10.72 1.4 63.88 1182 38.58 5.23 56.3 52 4.3 2016 46 40.9 0.10 34.27 166.6 10.82 0.6 53.55 1182 45.23 8.7 46.8 44.2 2.6 2017 57 41.2 0.1 34.2 190.96 13.02 0.2 58.36 1182 44.23 8.53 65.6 50.2 15.6 2018 70 57.3 0.21 32.18 212.4 14.07 0.4 76.48 1182 44.26 3.63 67.8 56.6 11.2 2019 77 86.3 0.12 38.87 233.64 15.11 -0.2 80.38 1182 51.25 4.69 94.6 73.8 20.74 2020 36 46.5 0.15 48.14 180.92 16.23 0.6 78.88 1300 66.03 2.10 58.5 56 2.5 2021 48 65.70 0.07 28.17 207.69 16.17 6 63.44 1450 71.56 9.47 70.34 61.7 9.18 2022 81 105.9 0.118 38.06.03 264.18 15.55 5 96.5 1450 82.24 5.13 80.65 72.34 8.28 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 106 www.americanjournal.org ministry of planning, central bureau of statistics, national accounts indicators the world bank(www.data.albankaldawli.org). reasons why the iraqi economy was greatly affected by oil prices we noticed from the previous analysis of table (1) that oil price fluctuations have a very significant impact on iraq’s budget and the economy in a way, and the effect here is in two directions: the first is positive, which is when oil prices rise, and the second is negative, when prices fall, and this is what concerns us. this great vulnerability to oil price fluctuations is the result of causes and problems in the structure and structure of the iraqi economy and the iraqi state. these problems can be summarized as follows: 1iraq depends for its revenues on the export of crude oil at a rate of up to 90%. dependence on crude oil in itself is not a major problem, provided that oil-related industries and refineries are developed to increase the value and to move other sectors and employ the workforce. 2. when we see that there is an increase in current and investment public expenditures over years without a clear increase in non-oil public revenues, this means that there is a structural problem in the economy and that it is not working properly because the general rule is that “an increase in public expenditures must lead to... an increase in public revenues. this problem may be due to several reasons, including: first: a decrease in investment in the private sector as a result of multiple reasons, including political, security, legal, and economic reasons. second: the flaw in the tax and fee system, and third: the lack of a correct economic strategy. the third section: conclusions and recommendations first: conclusions 1to fully finance operating expenses, we need a continuous rise in oil prices. the prices that were suitable for us in 2004 and 2005 are no longer sufficient to finance public expenses, especially since the increase in oil exports is now restricted by opec decisions. 2the significant drop in oil prices, less than $50, negatively affects all economic indicators, the most important of which are the central bank of iraq’s foreign currency reserves. 3when there is a significant decline in state revenues due to the decline in oil prices, the greatest damage is to investment spending, not current spending. this means that the most affected segment is non-employees, and there are multiple categories. 4the iraqi economy is unable to bear a drop in oil prices below $50 for more than two years because this, in light of investment spending, will lead to a significant decrease in foreign currency reserves and thus the collapse of the national currency. 5the official exchange rates of the iraqi dinar against the dollar are not flexible enough to adapt to the economic situation, and this exacerbates the problem when there are declines in oil prices. second: recommendations 1we recommend that the executive authority, the legislative authority, and the monetary authority need to change the theories, policies, and methods that are used in managing the economic and financial file and other sectors. this is because we cannot use the same theories, policies, and methods and expect different results, and we must rely completely on the scientific and experimental methods in research and in reproducing experiments. other countries. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 107 www.americanjournal.org 2the iraqi state does not have an integrated strategic plan for the near and long future, and there are no clear strategic goals, in addition to the absence of appropriate programs and tactics for the advancement of the country. therefore, the country needs a comprehensive strategy based on scientific foundations to advance the iraqi situation. 3developed countries are working hard to gradually abandon fossil fuels in the future or significantly reduce dependence on them. they have developed plans and timetables for this goal. on the other hand, we must develop strategic plans to gradually reduce dependence on oil in a way that can make a difference year after year. references 1. al-hasnawi maitham rabie, using commodity futures options to hedge the price risk of crude oil, doctoral thesis submitted to the college of administration and economics, university of baghdad, 2006. 2. al-hinai, harith abdel saeed, “oil price fluctuations and their impact on the general budget situation in the sultanate of oman,” doctoral thesis submitted to the faculty of law, mansoura university, 2019. 3. al-hiti ahmed hussein, oil economics, mosul: dar al-kutub for printing and publishing, 2000. 4. al-marsoumi, nabil jaafar, “papers on oil policy,” iraqi economists network. 2021, (https://iraqieconomists.net/) 5. ana maria herrera, mohamad b. karaki, sandeep kumar, “oil price stocks and u.s. economic activity.” 6. bello, saheed layiwola “impact of us crude oil inventory on west intermediate (wti) crude oil prices” university of surrey, uk, 20013. 7. horsnell, paul and robert mabro, oil markets and prices: the brent market and the formation of world oil prices, london: oxford university press, 1993. 8. iraqi ministry of finance, federal budgets, (www.mof.gov.iq). 9. lutz kilian, 20014 “oil price shocks: causes and consequences” 10. ministry of planning, central bureau of statistics, national accounts indicators, (www.cost.gov.iq.com) 11. saleh obadi, sona othmanova, mariam abdova, “what are the causes of crude oil prices” international journal of energy economics and policy, vol.3, special issue, 20013, pp.80-92. 12. soumyananda dinda, “environmental kuznets curve hypothesis: a survey”, ecological economics 49 (2004). 13. stephanie dunn and james holloway, “the pricing of crude oil,” reserve bank australia, 2012. 14. the central bank of iraq, annual statistical bulletin, and economic reports. 15. the world bank (www.data.albankaldawli.org). https://iraqieconomists.net/ http://www.mof.gov.iq/ http://www.cost.gov.iq.com/ http://www.data.albankaldawli.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 9, | feb., 2023 p a g e | 21 www.americanjournal.org the impact of commodity fineness in achieving customer service (an applied study on cement factory mabrouka in basra) abbas dhahir alrumdhan university of maysan abbas.dh.m@uomisan.iq a b s t r a c t k e y w o r d s this research is aiming to try to find out the impacts of quality which represented by its removal in the service provided to the client . mabrouka cement factory was option as a place for the study. as the study consisted of two variables, namely: the quality represented by its dimensions (performance, reliability, conformity, organization) as an independent variable, and client service as a dependent variable. that the importance of the study lies in determining which of the aforesaid dimensions have the greatest effect on the service which provided to the client, the research was based on two thesis . the first thesis is based on the existence of a correlation and impact relationship between the dimensions of quality combined and client service. the pattern of the questionnaire was used in order to reach the inference and recommendations of the research also in arrangement to reach the final results of the reconnaissance, then use the statistical program (spss) to analyze the study data, then the correlation coefficient and multiple linear retreating were used from the analysis of the specimen answers as statistical tools. the results of the study show that there is a correlation and impact between the combined dimensions of quality and customer service, as well as the existence of a correlation and effect relationship between each dimension of quality and customer service. the two researcher , after reviewing the inference and recommendations reached through the survey , recommended some recommendations which are linked to the research subject . commodity fineness achieving service cement mailto:abbas.dh.m@uomisan.iq american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 22 www.americanjournal.org ( البصرةمبروكة في أسمنت )دراسة تطبيقية عن معمل عباس ظاهر الرمضان الباحث : جامعة ميسان abbas.dh.m@uomisan.iq الملخص مبروكةإلى محاولة معرفة آثار الجودة التي تتمثل في إزالتها في الخدمة المقدمة للعميل. تم اختيار مصنع أسمنت الباحثيهدف من متغيرين، هما: الجودة التي تمثلها أبعادها )األداء، الموثوقية، المطابقة، التنظيم( كمتغير مستقل، كمكان للدراسة. وتألفت دراسته أن أهمية الدراسة تكمن في تحديد أي من األبعاد المذكورة أعاله لها أكبر األثر على الخدمة التي قدمها وخدمة العمالء كمتغير تابع. ين. تعتمد الفرضية األولى على وجود عالقة ارتباط وتأثير بين أبعاد الجودة مجتمعة وخدمة استند البحث إلى فرضيت ، فقدللعميل العمالء. ، أجل الوصول إلى النتائج النهائية لالستبيان من أيضاتم استخدام طريقة االستبيان من أجل الوصول إلى استنتاجات وتوصيات البحث استخدام ) ثم الدراسة( spssالبرنامج اإلحصائي بيانات تحليل ، لتحليل المتعدد من الخطي االرتباط واالنحدار استخدام معامل تم إجابات العينة كأدوات إحصائية. أثير أظهرت نتائج الدراسة أن هناك عالقة ارتباط وتأثير بين األبعاد المشتركة للجودة وخدمة العمالء، وكذلك وجود عالقة ارتباط وت العمالء. وبعد استعراض االستنتاجات والتوصيات الجودة وخدمة أبعاد الدراسة، التي بين كل بعد من إليها من خالل التوصل تم المتعلقة بموضوع البحث. ببعض التوصيات الباحثأوصى مقدمة التي تشهد حالة من التطور التكنولوجي والتنوع الكبير في الحالية الفترةفي من المصطلحات المهمة، خاصة ualityqويعد مصطلح السلع. لذلك ، يجب على المنظمات التي ترغب في دخول األسواق لتحقيق أكبر حصة في السوق أن تحقق أوال التمييز في الجودة ، الالزمة لعملية اإلنتاج ء المواد الخام وستكون القبعة في جميع مستويات المنظمة. أي بما أن الخطوة األولى من عملية اإلنتاج هي شرا ومطابقة المواصفات باتباع خطوات هيئة اإلنتاج. يعد استخدام الجودة المتمثلة في أبعادها أحد الوسائل التي يمكن للمنظمة من خاللها توفير منتج ذي جودة عالية يلبي احتياجات ورغبات المستهلك. العالية والسمعة العالية، فقد حاول من خالل هذه الدراسة معرفة تأثير جودة السلع في تحقيق وبما أن االسمنت العراقي يتميز بالجودة خدمة العمالء. وعلى وجه الخصوص، في الوقت الحاضر، بدأ يظهر تزامن السلع األجنبية التي تدخل البلد، مثل األسمنت )الكويتي واإليراني(. وقد الجودة من خالل أثر دراسة ) تبين من خالل للدراسة وهي أبعاد أربعة اختيار تم أنه المطابقة أبعادها الموثوقية، التنظيم، األداء، وتبين أن هناك عالقة وتأثيرا بين األبعاد األربعة للجودة والخدمة المقدمة للعميل. لذلك يمكن للمنظمة ( على خدمة العمالء،للمواصفات و كلها من أجل إضافة مواصفات جذب إضافية للمستهلكين يمكنهم من خاللها التنافس مع قيد المناقشة استخدام هذه األبعاد جزءا منها أ اإلنتاج األجنبي. من أجل الوصول إلى عالقة بين جوانب البحث. واشتمل البحث على مقدمة وأربعة أقسام. منهجية البحث مشكلة البحث :أوال من خالل تقديم منتجات ذات جودة عالية وبأسعار في متناول الجميع من أجل تحقيق أكبر حصة سوقية، نجد أن اإلسمنت العراقي يعد وعلى الرغم من تميز اإلسمنت العراقي إال أن حصته السوقية بدأت في التراجع، خاصة بعد دخول العديد من الصناعات المتميزة، المشكلة البحثية تتمحور حول معرفة دور أبعاد الجودة قيد الدراسة في فرصة لذا فإن البالد، مثل إيران.من األسمنت األجنبي إلى الحصول على فرصة العميل لإلسمنت العراقي أمام االسمنت األجنبي. أهمية البحث ( في خدمة تنظيم، الموثوقية، مطابقة الخصائصأداء المنتج، التكمن أهمية هذه الدراسة في تحديد العالقة بين األبعاد األربعة للجودة ) فإن التأثير الدائم ألبعاد الجودة على ، ومن ثم على خدمة العمالء العمالء. كما تتضمن هذه الدراسة معرفة أثر األبعاد المذكورة أعاله mailto:abbas.dh.m@uomisan.iq american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 23 www.americanjournal.org ألبعاد التي يمكن من خاللها الوصول خدمة العمالء يعتبر من األمور المهمة من أجل الوصول إلى موقع قيادي في طريقة تحديد أنسب ا إلى رضا المستهلك. ثالثا: أهداف البحث يهدف البحث إلى: تأثير أبعاد الجودة على خدمة العمالء. على . التعرف1 على العالقة بين هذه األبعاد وخدمة العمالء. . التعرف2 رابعا: فرضيات البحث الفرضية الرئيسية األولى -1 ارتباطية كبيرة بين جودة السلعة وخدمة العميل ، ومن هذه الفرضية هناك ثالث فرضيات فرعية:هناك عالقة وجود عالقة ارتباطية كبيرة بين األداء وخدمة العمالء. -1 هناك عالقة ارتباطية كبيرة بين الموثوقية وخدمة العمالء. -2 العمالء. وجود عالقة ارتباطية كبيرة بين المطابقة وخدمة -3 هناك عالقة عاطفية كبيرة بين الهيئة وخدمة العمالء -4 الفرضية الرئيسية الثانية -2 هناك عالقة تأثير كبيرة بين جودة السلعة في خدمة العميل، وتنقسم منها ثالث فرضيات: . باألداء المعنوي في خدمة العمالء. مؤثرة هناك عالقة -1 .في خدمة العمالء المشتعلة على الموثوقية هناك عالقة تأثير -2 هناك عالقة كبيرة بين التأثير والوضوح في المطابقة في خدمة العمالء -3 هناك عالقة تأثير كبيرة على معنويات المؤسسة في خدمة العمالء -4 خامسا: مخطط البحث: يوضح الرسم البياني للبحث العالقة و العالقات بين الرئيسيالتأثير على واألبعاد الفرعية. ( المخطط االفتراضي للبحث1الشكل رقم ) اداء موثوقيه يتفق التنظيم خدمة العمالء american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 24 www.americanjournal.org : وعينة منه الدراسة مجتمعسادسا: نظرا للجودة التي تتمتع بها شركة االسمنت العراقي والتي تتطابق مع موضوع للدراسة كمكان مبروكةاختيار مصنع اسمنت تم حيث تم توزيع استمارة االستبيان على العاملين داخل المصنع المصنعداخل عن عينة للدراسة تم اختيارها من عبارة ، وهي الدراسة ( ألنها غير صالحة للتحليل. 2دت )( واستبع31( استبانة. واستخدمت )33( استبيانا واستالم )40وتم توزيع ) الجانب النظري جودة السلعة مفهوم الجودة -أوال : ماذا نعني بالجودة ألن المصطلح عادة ما يعني أشياء مختلفة في الواقع ، عادة ما يستخدم مصطلح الجودة عندما يجب استخدام المصطلح أو الخدمة ، فهذا يعني أن هذا المنتج أو هذه الخدمة ذات للمنتجذلك سواء كان ، ualityqثم ( dolworth,1992 ، p609) األنسب لالستخدام درجة عالية من الكمال لتحقيق رضا المستهلك عنها ألنها وفقا لمواصفات ورغبات ذلك المستهلك من حيث كونها مناسبة .وعلى السعر المناسب يمات األشخاص خارج الشركة الذين ينتجون سلعا أو خدمات. الجودة هي واحدة من العوامل يرى ديلورث ذلك ، يعتمد الرضا على تقي ويرجع ذلك إلى وعي المستهلكين باختيار ، والمصانع والخدمات الشركاتبين مختلف الرئيسية التي ساعدت على رفع روح المنافسة أصبحت الجودة، في أيامنا هذه، عامال بشريا لتعزيز ونجاح أي (. 2002منتج أو خدمة ذات نوعية جيدة بسعر مناسب )عارف ، مؤسسة، وبالتالي تقليل احتماالت الفشل التي قد تواجهها بسبب المنافسة الشديدة في األسواق، وتغير أذواق ومتطلبات العميل. لذلك ، (39: 2001، يمإل( أ) فإن إنشاء نظام جودة كفء وفعال هو واجب على أي منظمة لضمان تحقيق أهدافها. )ق السلعة أو الخدمة ذات السعر المرتفع هي في نفس الوقت ذات جودة عالية، والحقيقة أن ارتفاع سعر منتج أن المستهلكين قسم يعتقد ة بدأت المنافسة تظهر بين الشركات والمصانع التي تقدم منتجات وخدمات مختلفة لزياد هنا فمنذأو خدمة ليس مؤشرا على جودتها، الذي ينص على ualityqذلك يقودنا حقا إلى شعار ، ألن هو ما يبحث عنه المستهلك hatt الجودة وخفض األسعار لتصورها. (2002)عارف، الجودة العالية والسعر المنخفض"." ثانيا: جودة السلعة: على الرغم من أهمية اختالف الباحثين والمهتمين بتعريف مفهوم الجودة، إال أن ذلك يجعل مسألة تحديد أبعادها أكثر تعقيدا. )عبيد، ( أن الشركة التي تتبنى استراتيجية تنافسية يجب أن تبحث عن أبعادها النوعية، من خالل وعي عميق بمتطلبات المستهلكين 27: 2003 تتمثل فيما يلي: ستراتيجية التنافسية، وليس بعد الجودة، تقوم على افتراضات عقالنية مهمة وتوقعاتهم، فاال السبب الرئيسي لوجود الشركة واستمرار نموها واستقرارها هو تقديم منتج ذي قيمة يخدم المستهلك. .1 . الجودة لها دور حاسم وأساسي في خلق هذه القيمة. 2 خاص هناك طرق مختلفة للمنافسة. أيضا ، يجب أن يكون لدى الشركة استراتيجية تمثل مزيجا من أبعاد الجودة التي تحدد مسارها ال .3 (99: 1998لخلق وضع تنافسي متميز ومرغوب فيه. )البصري، النوعية الجيدة: نظام فعال لدمج جهود تطوير الجودة وصيانة الجودة وتحسين الجودة لمختلف مجموعات المنظمة، من أجل )د( تحقيق تسعى والتي االقتصادية المستويات أفضل على تكون أن من والخدمات اإلجراءات )تمكين للعمالء الكامل الرضا , slackإلى armand feignbum, 1998, p761) ثالثا: أهمية أبعاد جودة السلع يمكن تحديد أهمية أبعاد جودة السلعة في النقاط التالية: ب. يتم ذلك بالجودة وكذلك السعر المناس حيثغوب فيها ، روخدمات ذات تصميم عالي الجودة مع حقائق م سلع. يريد المستهلك 1 عند إضافة تلك الخصائص أو األبعاد إلى المنتج، والتي من شأنها أن تحقق رضا المستهلك عن ذلك أيضا( l, 2004: p. 32i )الفاد( المنتج. يتحملها المنتج نتيجة التي يميل البعد الفكري للجودة في المنتج نحو تأكيد المطابقة للمواصفات المعمول بها ، وكذلك تقليل التكاليف .2 العمل على أساس نظام الجودة الذي يتم تصميمه وتأسيسه في المنظمة. ، ص 2004الفد،تلبي تطلعات المنتج فيما يتعلق بالجودة متطلبات المستهلك حيث تركز جميعها على التوافق مع استخدام المستهلك. ) 33) ( krajewski، 1993، p92نتج أو الخدمة نفسها )غالبا ما تكون الخدمة أو دعم المنتج الذي تقدمه الشركة مهما لجودة الم .3 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 25 www.americanjournal.org توقعات 4 بين الفجوة بناء بها يمكن التي والدرجة العميل لتوقعات اإلدارة وتصوراتها دقة مالحظات على األعمال نجاح يعتمد . ( 92، ص1993المستهلك واإلمكانيات التشغيلية. )كراييفسكي، جودة لخدماتهم أو منتجاتهم ويقيسون تنفيذ الجودة من خالل كيفية تطبيقها وامتثالها لتلك . مطابقة المعايير. يضع المديرون معايير ال5 (99، ص1993المواصفات عن كثب. )كراييفسكي، وأن الطريقة المثلى لتحقيق النجاح ورضا العمالء هي تطوير ( evans, 2003, p11. معظم هذه األبعاد تتحدث عن تصميم المنتج )6 المنتج. تصميم . تلبية متطلبات العمالء باستمرار هو جوهر مطابقة الجودة. يتم إنشاء المتطلبات من قبل العميل ، مما يؤدي إلى فهم المواصفات 7 بها والموافقة عليها ويستلزم الوفاء الدائم بهذه االحتياجات. في الوقت نفسه ، لدى الشركات أيضا متطلبات يجب على الموردين الوفاء تلبية عرض الجودة. وبهذه الطريقة ، فإن الجودة هي اقتراح ثالثي األبعاد ، والشركة ومورديها ، وعمالئها. )هيل، إذا كان يجب (311، ص2000 رابعا: أبعاد جودة السلعة األداء: -1 السيارة ، وقوة الدفع يشير هذا البعد إلى الخصائص العامة أو الرئيسية التي تميز السلعة أو الخدمة ، مثل سعة أسطوانات المحرك في إلخ )عقيلي، الخلفي ، والطول ، والعرض. أو الوظيفة ومعلماتها )العزاوي، 34، ص 2001األمامي أداء : ص 2006( أو كيفية المطلوب، فمثال يرى كما (، 157 بالشكل أداء وظيفته المنتج من أجل التي تميز الخواص الخصائص أو نرى هنا أن هناك بعض (ar, 2004, p. 448( )أ والوضوح في صورة جهاز التلفزيون. )النج( ( اللونالنجر) الجيد. )إبراهيم، المستهلك ويؤهل الهاتف يدل على األداء إلى أن وضوح الصوت على بأدائه، مشيرا المنتجات والخدمات جودة (39، ص 2006 على الرغم من أن كل من جودة التصميم واألداء هما هدف تسعى المنشأة إلى تحقيقه أثناء عملية اإلنتاج ، فقد يكون من الصعب في للجودة الناتج عن ظروف اإلنتاج الفعلية ، والذي يعرف باسم جودة اإلنتاج أو جودة بعد اخر هناكالكامل. الممارسة العملية تحقيقهما ب (.42، ص 2003، هالمطابقة للمواصفات )الطائي الموثوقية: -2 كما يتم ،غيل محددة تعرف الموثوقية بأنها مقياس لقدرة نظام أو منتج أو خدمة على األداء خالل فترة زمنية معينة في ظل ظروف تش -ظروف االستخدام العادية. )التعريفها على أنها قدرة منتج أو نظام أو خدمة على العمل خالل فترة صالحيتها دون أعطال أو (. 173: 2006زاوي، أ عندما يشتري المستهلك منتجا فإنه يتوقع أن يعمل هذا المنتج لفترة زمنية محددة، والتي ستكون ثالث سنوات بفعالية وكفاءة دون توقف، رضا المستهلك عن زادحددتها الشركة المنتجة سابقا، التي فكلما أدى المنتج وظيفته بشكل جيد ودون انقطاع خالل الفترة الزمنية ، ص 2001قلي، ع( يرى استقرار مستوى األداء لجودة السلعة أو تقديم الخدمة مع مرور الوقت. ))عقيلي صحيح. المنتج والعكس 34) المطابقة 3 ويشير هذا البعد إلى مدى توافق مواصفات السلعة أو الخدمة وجودتها مع توقعات العميل، أي مدى قدرة مواصفات وجودة السلعة أو العميل وفقا لما توقعه )عقيلي، المنتج له مواصفات معينة عند إنتاجه، (، p. 35, 2001الخدمة على تلبية احتياجات ورغبات أن مثل كانت السيارة الساعة فسرعة في الكم )هذا المثال على سبيل المولد، قوة فولت( 250أو يقوم وهكذا، ومنكيلو أن المتوقع مثل يعتمد ذلك على درجة مطابقة المنتج للمواصفات حيث ،المنتج المستهلك، عند شراء هذا المنتج، بمطابقة المواصفات مع قدرة (jar na-al )( -منها سابقا. )الالتخلص تمج النهائي مع المواصفات التي يراه ، إنه مقياس لمدى توافق المنت(jar, 2004. pna . 448) الهيكلة -4 للسلعة الفيزيائية الخصائص الجذب ( zawi 2006 ، p.57 a-alوشكلها وملمسها وأناقتها ) إنها إيفانز ، صفات أو ، كما يراها (evans ، 2003 ، p11اإلضافية للمنتج ) كما نرى ، فإن هذا البعد يعني أن المنظمة تضع صفات معينة في المنتج وهي صفات مكملة للمنتج من أجل إضافة ميزة جديدة إليه ، وبالتالي جذب انتباه المستهلك نحو المنتج. ( jar ، 2004 ، p. 449 na-alفي جهاز التلفزيون )الالسلكي contr olهي توفر ، jar an-alص التكميلية للمنتج ، وفقا ل الخصائ الكماليات التي تضاف إلى السيارة مثل وسادة هوائية ووسادة هوائية المتصاص الصدمات ، ومجموعة اإلسعافات األولية. إلخ أو american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 26 www.americanjournal.org (qili, 2001: 35a.) الجودة في حال التنافس بين أكثر من منتج سواء كان منتجا منافسا في السوق المحلي أو منتجا تظهر أهمية وتحسين مستواها. كبيرا على شركاتنا المحلية مع ضرورة االهتمام بالجودة ضغطا خارجيا يوزع بضائعه في السوق المحلية مما يعني ( p. 44, ee ,2003 )الطائي( خدمة العمالء مفهوم الخدمةأوال: ومصدرا للعمالة هي إحدى خصائص اقتصادات (gnp)جزءا من الناتج القومي اإلجمالي األهمية العالية لصناعات الخدمات تعتبر الترفيه كما هو الحال الدول الغربية. أصبح بإمكان أي فرد اآلن شراء منتجات أكثر تنوعا في السوق االستهالكية ، مثل منتجات ما إذا كانت إدارة التسويق في مجال الخدمات في السنوات القليلة الماضية تبحث العديد من المنشورات في , تصاالتوالصحة واال ومع ذلك، يبدو أن سوق الخدمات يتميز . تختلف عن إدارة سوق السلع المادية وأن النقاش في هذا المجال سيستمر بال شك في المستقبل , gastonتشمل القيمة غير الملموسة، وعدم قابلية التجزئة، والتعددية، وقابلية التلف، والوفيات، والملكية )ببعض الخصائص التي 1998 ,c. 267 .) ويشكل الناتج٪( من هذا 74يحقق ) حيث وقد ازداد نمو قطاع الخدمات بشكل مطرد بالنسبة للناتج القومي اإلجمالي للواليات المتحدة، مليار دوالر سنويا، 28باإلضافة إلى ذلك، ينتج قطاع الخدمات فائضا في الميزان التجاري يبلغ حوالي ائف، ٪( من جميع الوظ80) وهو ما يقدر (.182ص، donnelly & peter, 2000مليار دوالر في قطاع المطابقة والسلع ) 132مقارنة بعجز مالي قدره ، أن التقدم التكنولوجي عامل رئيسي في زيادة تجارة الخدمات (، ,p. 292 stanton, 2006بأكثر من نصف النفقات االستهالكية ) اآللة الحاسبة اإللكترونية، على سبيل المثال، تكلفة الخدمة، التي كانت مكلفة للغاية في السابق، أصبحت اآلن أقل تكلفة بسبب نقص وأن العمالة واستبدالها بالحواسيب. ألنها في إلى طرف آخرلخدمة بأنها "أي نشاط أو منفعة يمكن ألحد الطرفين أن يقدمها ا( kotler, 2000, p467وعرف كوتلر ) ناحية أخرى أكد األساس غير ملموسة، وال تؤدي إلى أي ملكية، وقد يكون إنتاجها مرتبطا أو ال يكون مرتبطا بمنتج مادي، ومن (mathis & jackson, 2003, p33 )لز وسيلة هو ممتازة خدمة تقديم التنافسي.أن األداء )كما يادة إليه kotler andأشار others, 2003, p. 144 ،) في مصدر آخر، "أن أي نشاط أو عمل ذي منفعة يمكن أن يقدمه طرف معين إلى طرف آخر، وأن مع زيادة مستوى جودة المنتج بشكل شامل بين المنافسين الخدمات في جوهرها غير ملموسة وال تؤدي إلى اقتناء بعض الممتلكات". ، تحول العمالء نحو الخدمة كوسيلة أساسية للتمييز بين المنظمات ، وقد قامت المنظمات التي استفادت من هذا االتجاه بين العمالء بما (: kotler, 2003, p322يلي: ) هداف المنتج. . وضع أهداف الخدمة الدولية التي تدعم أهداف العمل وأ1 العميل من جودة الخدمة واالستجابة.ما يتوقعه تحديد وتعريف. 2 ترجمة توقعات العمالء إلى خدمة قابلة للتسليم. .3 إنشاء نظم تسليم متكاملة ومتماسكة ومتخصصة لتقديم الخدمات.. 4 مراقبة أداء وجودة الخدمة. . 5 التكلفة الحتياجات العمالء. توفير استجابة سريعة وفعالة من حيث 6 :ثانيا: خصائص الخدمة أجمع معظم الباحثين على خمس خصائص رئيسية حيثتتميز المنتجات الخدمية بخصائصها التي تميزها عن المنتجات السلعية، للخدمات: على سبيل المثال رؤيتها أو تذوقها أو سماعها أو الشعور بها قبل شرائها.( القيمة غير الملموسة للخدمة: وهذا يعني أنه ال يمكن 1 الركاب على متن الطائرة لديهم فقط تذكرة أيًضا، ال يمكن لألشخاص الذين يخضعون لجراحة تجميلية رؤية النتيجة قبل الشراء ، عن uyersيبحث لذلك ب ووعد بوصولهم والوصول اآلمن ألمتعتهم إلى الوجهة المطلوبة والوقت المحدد ، للحد من عدم اليقين ، مهمة مقدم هذا هو السبب في أن عالمات جودة الخدمة ، حيث نجدها تقدم استنتاجات حول الجودة من الموقع واألشخاص والسعر. بعض المحللين يطلقون إلرسال اإلشارات الصحيحة حول الجودة. أيًضاالخدمة هي جعل الخدمة ملموسة بوسيلة واحدة أو أكثر ، أدلة منتظمة وصادقة على قدراتها )كوتلر، للعمالء مع الخدمات خدماتها على هذه الحالة "الشغف اإلدارة"، حيث تقدم منظمة (.249، ص2005 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 27 www.americanjournal.org (2الشكل رقم ) بعض اآلثار المترتبة على عدم كون الخدمة غير ملموسة .27يوب، دار الرضا للنشر، دمشق، ص "، ترجمة محمد أجالخدمات ماركيتين(، "مبادئ 2003المصدر: أدريان بالمر، ) )غير ملموسة( تؤدي إلى بعض اآلثار المترتبة أخالقيةيشير إلى الخدمة على أنها ( adrian, 2003, p. 27من خالل الشكل السابق ) الطريقة، يجب أن يكون لدى العميل إمكانية الوصول وبهذه ، على ذلك، حيث يواجه العمالء صعوبة في تقييم الخدمات المتاحة لهم المعلومات العديد من إلى ثروة من تعقيد متاحةالالخدمات حول تقليل اإلدارة ، تحاول المتنافسة. على هذا األساس المنظمات من الخدمات المقدمة للعميل حتى يتمكن العميل من فهمها. ثم يتم ، ervicessأما بالنسبة ل أوال ، يتم إنتاج السلع الطبيعية ، ثم الحفاظ عليها ، ثم بيعها ، وأخيرا استهالكها. : ال تغضب( 2 بغض النظر ، إنتاجها واستهالكها ، كل ذلك في نفس الوقت. إن عدم تقسيم الخدمات أو فصلها يعني أنه ال يمكن فصلها عن مصادرها . kotler, 2003, pمن قبل اإلنسان أو اآللة. إذا قدم شخص ما خدمة فإنه يعتبر جزءا من تلك الخدمة ) عما إذا كان يتم توفيرها فيما يتعلق باختيار البضائع المناسبة التي استثمر فيها جزءا من أمواله. العامل الذي ينصح العميلمثال على ذلك هو (.(147 واستهالك الخدمات تعتمد على األشخاص ، فهناك خطر عدم استمرارية الجودة. ترتبط جودة ( االنقطاع: نظرا ألن عملية إنتاج 3 (. kotler. 2003, p. 149الخدمات بمن ومتى وأين وكيف يتم تقديمها. من الصعب جدا مراقبة جودة الخدمات نفسها. ) ال يشكل عدم حفظها بهدف بيعها الحقا أو استخدامها( عدم الحفظ )التالشي(: جودة عدم االحتفاظ بالخدمة، مما يعني أنه ال يمكن 4 الحفاظ على الخدمات مشاكل محددة إذا كان الطلب عليها مستقرا إلى حد ما. ومع ذلك ، إذا تعرض الطلب لبعض التقلبات المختلفة ، عدة استراتيجيات للقضاء على للمؤسسات المقدمة للخدمات تطبيق يمكن فإن المؤسسات التي تقدم الخدمات تواجه صعوبات ومشاكل. عدم التماثل بين الطلب والعرض ، على جانب الطلب ، فإن التسعير التمييزي ، أي تحديد أسعار مختلفة في وقت مختلف ، يساعد في العصرما هي تغيير طفيف في حصة الطلب في وقت الذروة ، ويمكن القول أن المنظمة يمكن أن تحدد أسعارا منخفضة في وقت (.150، ص 2003ميت. على المسوق الناجح هو كيفية العثور على فوائد الزمان والمكان ، )كوتلر ، ال الملكية: عندما يشتري المستهلكون سلعا طبيعية، مثل السيارات أو أجهزة الكمبيوتر، على سبيل المثال، فإنهم يحصلون بساطة ( 5 محدودة، أي أنهم يمتلكون السلعة، ولكن عند شراء خدمة ال يمكن امتالكها، ألن على قدرات خاصة الستخدام المنتج لفترة زمنية غير (. 151ص ، kotler, 2003الخدمة تستهلك عند استخدامها ) ( التعددية )عدم التجانس(: يتميز تقديم المنتجات الخدمية بالتعددية، حيث يصعب توحيد مقاييس اإلنتاج في حالة تدخل العديد من 6 . gaston, 1998, pالموظفين في عملية التوزيع، باإلضافة إلى أن العمالء لديهم رغبات مختلفة فيما يتعلق بنوع الخدمة المطلوبة ) 269( .)etzel et al, 1998, p270 )،حتى مقدم الخدمة يمكنه توحيد يضيف: )من المستحيل بالنسبة لصناعة الخدمات يشير كما، حد ما عن وحدة الخدمة األخرى نفسها بسبب العامل البشري في اإلنتاج والتسليم المخرجات. تختلف كل وحدة خدمة إلى عدم قابلية الخدمة للتجسيد إنه يقود العمالء إلى: المنافسةمواجهة صعوبة في تقييم الخدمات -1 رؤية مستويات أعلى من الخطر -2 وهو يؤدي إلى استجابة اإلدارة من خالل: تقليل تعقيد الخدمة.1 التأكيد على اإلشارات الملموسة.2 جودة الخدمات علىالتركيز. 3 american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 28 www.americanjournal.org ( إلى أن تنوع الخدمة يعني أن جودة الخدمات تعتمد على هوية الشخص الذي يقدمها وكذلك وقت ومكان 250، ص 2005كوتلر ) وطريقة تقديمها. حيث ن حيث عدم الملموسية، وااللتزام تجاه البائع، وعدم التجانس وتقلب الطلب. لذلك تختلف الخدمة في خصائصها المذكورة أعاله م يواجه التسويق المباشر تحديات خاصة قد ال ترتبط ببيع السلع، حيث أن هناك عددا من المؤثرات الداخلية والخارجية التي تؤثر بشكل أن الخدمات الجديدة قد تم تطويرها بشكل منطقي وأن الخدمات كبير على استراتيجيات تسويق الخدمات التي تحتاج إلى التأكد من يالحظ هو أن ما ورد في الكتب واألدبيات التسويقية حول خصائص الخدمة ال ينحرف في ما الحالية قد خلقت صورة جديدة للعميل. أن خصائص الخدمة يمكن ( p9، 9951يؤكد باين ) محتواه عن الخصائص المذكورة أعاله مع التغيير والتنويع حسب مقدم الخدمة. أن تكون مصدرا للتمايز التنافسي. الخدمة التي يمكن فهمها بسهولة أكبر والتي يمكن تقييم فوائدها بسهولة أكبر يمكن أن تكتسب ميزة كبيرة. فجوات الخدمات : ثالثا من خالل العديد من الخدمات، تختلف عالقة العميل الدائمة عن عالقة العميل المؤقتة التي تنشأ بين البائع والمشتري، بمعنى آخر ينظر أحد األمثلة على هذه العالقة، عالقة المريض بطبيبه وتعتبر العميل إلى البائع على أنه شخص لديه قدرات معرفية ذات قيمة بالنسبة له، هذه العالقات ألنذلك الوقت ، يلتزم المشتري بالنصيحة التي يقدمها البائع له أو القتراحه ، في عالقة األستاذ الجامعي وطالبه، كما هي نظرا ألن العديد من المنظمات الخدمية هي من الفئة التي تتعامل مع العمالء المنتظمين ، فإنها قد تكون ذات طبيعة تتميز باالستدامة. ظيفة التسويق بطريقة أكثر تخصصا ، وبالتالي فإن الخدمات ذات الجودة المميزة مهمة جدا لنجاح أي منظمة في بيئة اليوم تمارس و في إحدى الدراسات التي ركزت على مستوى ( peter & donnelly, 2000, p188-189) في كما هو الحال ، التنافسية المتزايدة أكثر من ) أفاد ، الخدمات أخرى ٪( ممن 40وجودة إلى منظمات منافسة نقلهم أن سبب االستطالع هو ضعف مستوى ، شملهم ٪( منهم فقط األسعار، ومن الجدير بالذكر أن العميل هو الذي يحدد جودة الخدمات المتميزة له في ضوء البدائل 8فيما ذكر )، الخدمات تعزى مشاكل تحديد نوعية الخدمات الجيدة إلى االختالف في التوقعات وردود الفعل وتجارب حيث المتاحة له والحتياجاته الخاصة، -يمكن تحديد عدد من الثغرات على النحو التالي: بحيثلمحدد والعميل، التعامل بين مقدم الخدمة ا الفجوة بين توقعات العميل وردود فعل اإلدارة على توقعات العمالء هذه. (1 تقدمها المنظمة المعنية. التي الفجوة بين ردود فعل اإلدارة على توقعات العميل ومواصفات جودة الخدمة (2 جودة مواصفات الخدمة والجودة المتصورة للخدمة. الفجوة بين ( 3 ( الفجوة بين تقديم الخدمة الفعلية واالتصاالت الخارجية المتعلقة بتلك الخدمة.4 في األساس ، يتلقى العميل مستوى جودة الخدمة كدالة على أهمية واتجاه الفجوة بين الخدمة المتوقعة والخدمة المستلمة. (، أن الفجوات ال تظهر إال بوجود طرفين، سواء كانا متناقضين أو متوافقين إلى حد 345، ص 2005ويضيف العجارمة )العجارمة، فما لم تشعر اإلدارة أبدا بوجود مثل هذه الثغرات، فمن الضروري في الخدمات تقليص ، المحدودما، فالفجوة تظهر في مداها الواسع أو طرق عديدة ومتنوعة.الفجوة قدر اإلمكان ب ( إلى أن هناك انحرافا بين الخدمة الناتجة والخدمة المتوقعة. يكشف هذا االنحراف عن الفرق بين 2006زاق ومعراج، عبد الرويشير ) توقعات العميل والواقع. لكي تتمكن المنظمة من تقييم جودة خدماتها ، يجب عليها تقييمها بالمحددات التالية: : يجب أن تكون الخدمة متاحة دون أي تأخير أو انتظار. سهولة الوصول (1 المعلومات: يقصد بها إبالغ العميل وأن تكون باللغة التي يفهمها وبعبارات بسيطة. (2 المجاملة: يجب أن يكون الموظفون مهذبين ومحترمين وذكيين. (3 اءة الكاملة لضمان أفضل أداء للخدمة. الكفاءة: وهذا يعني أن العاملين الذين يقدمون الخدمة يتمتعون بالكف (4 المصداقية: يجب أن تحصل المنظمة على ثقة عمالئها. (5 سرعة رد الفعل: استجابة سريعة وفعالة من جانب العمال لمشاكل العميل.( 6 األمن: يتم تقديم الخدمة في ظل ظروف أمنية كاملة.( 7 منتجات المرتبطة بالخدمة.التجسيد: وهذا يعني أن درجة الجودة تتوافق مع ال (8 ( فهم العميل: هو كل الجهود التي تبذلها المنظمة من أجل فهم العميل، واالهتمام باحتياجاته.9 ( أن توقعات العميل حول الخدمة هي في حد ذاتها معتقدات وأفكار معينة يحملها العميل لتكون 2005)العجارمة، ويضيف العجارمة إلى ثالثة c ustomerبعض الكتاب قد قسموا توقعات ال أن بمثابة معايير أو مقاييس ثابتة يعود إليها من أجل تحديد جودة األداء. مستويات، وهي: american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 29 www.americanjournal.org الخدمة المطلوبة: تعكس ما يريده العميل. -1 الخدمة الكافية: وهي المستوى الذي يرغب العمالء في قبوله. -2 يمكن التنبؤ بها: مستوى الخدمة التي يعتقد العمالء أنها ستحدث. الخدمة التي -3 رابعا: سلسلة أرباح الخدمة (wrigley, 2002, p2 ) يشير إلى أن هناك عالقة وثيقة بين جودة الخدمة ورضا العمالء وربحية المنظمة. من خالل الشكل رقم الموظفين 3) تقديم أن يتضح في لخدمات(، يساهم الجودة نتيجة عالية يجعلهم مما في تحقيق رضاهم، للبقاء أكثر عرضة لذلك مالن بتقديم خدمات ذات ادرون على بذل المزيد من جهودهم لتحسين اإلنتاجية. ويقترن هذان العاأنهم قحيث مؤسساتهم لفترة أطول، واصر العالقات اإليجابية بينهم وبين المنظمة، ومن ثم خلق لتعزيز أ وأيضا ، قيمة أفضل، والتي بدورها تعد وسيلة لكسب رضا العمالء ي إلى فوائد إضافية في تقليل تكاليف الخدمية كلمة منطوقة قوية وصادقة، مما يؤدمما يمنح المنظمة ، مستويات عالية من الوالء منهم على المدى الطويل ونمو عائدها. ربحيتهالذلك ، تساهم برامج تحسين الجودة بنشاط في زيادة جذب عميل جديد. (3الشكل رقم ) ربحية الخدمة سلسلة . 2الحاجة إلى طريق جديد للمضي قدما"، ص -( "بحوث رضا العمالء 2000ريجلي، سارة، ) المصدر: يشير إلى أن منظمات الخدمات الناجحة تركز اهتمامها على كل من عمالئها وموظفيها. ( kotler, 2005, p250في نفس االتجاه ) لعمال والعمالء.يفهم سلسلة أرباح الخدمة التي تربط أرباح منظمة الخدمة برضا ا كما -:أقسامتتكون هذه السلسلة من خمسة جودة الخدمة الداخلية: اختيار وتدريب أفضل عامل، وتوافر بيئة عمل عالية الجودة، ودعم قوي لمن يتعامل مع العمالء. -أ العمال راضون ومنتجون: هم عمال أكثر رضا وإخالصا وجدية في العمل. -ب قيمة للعميل وتقديم الخدمة بطريقة أكثر فعالية وكفاءة. قيمة أكبر للخدمة: خلق -ج العمالء الراضون والمخلصون: العمالء الذين يشعرون بالرضا والوالء والمثابرة في عملية الشراء واستدالل العمالء اآلخرين. -د األرباح والتطوير السليم للخدمة: األداء األمثل للمنظمة الخدمية. -ه االحتفاظ بالموظ فين زيادة األرباح على المدى الطويل وفاء رضا العمالء قيمة السلك الدبلوما سي رضا الموظفين جودة الخدمة الداخلية العائد نمو االحتفاظ بالموظ فين american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 30 www.americanjournal.org المتغيرات البحثية بينيات عالقات التأثير وتحليل فرض اختبار بين متغير البحث المستقل )جودة السلعة( ومتغير البحث المعتمد )خدمة العمالء(. كبيرة معنويافترض البحث أن هناك عالقات تأثير سيتم الكشف عن هذه العالقات وتحليلها حسب ترتيب ظهورها في مخطط أبحاث الفرضيات، حيث، وقد تمثلت هذه العالقة بفرضيتين على النحو التالي: وفي ضوء هذه الفرضية (، y1السلعة في خدمة العمالء ) تأثير معنوي بنوعية ذات تشير فرضية البحث إلى )وجود عالقة معنوية فعاليته وجود عالقة وظيفية بين جودة وتفترض(، y1) تؤثر على خدمة العميل تشير معادلة االنحدار البسيطة إلى أن جودة السلعة في ضوء هذه العالقة يتم صياغة معادلة االنحدار البسيطة التالية: (، y1السلعة وخدمة العمالء ) xβy1 = a + ثابتة قيمة بما أن )أ( تمثل سلعة. أما تقديرات هذه القيم ومؤشراتها اإلحصائية فقد تم حسابها على هي دالة على جودة ال( y1هذه العالقة تعني أن خدمة العمالء ) (. سيتم تحليل عالقات التأثير بين المتغيرات ، على النحو التالي: 31) حواليمستوى عينة البحث السلع ( جودة0.59( + )2.022خدمة العمالء = ) ض الفرضية في إطار هذه الصياغة. وأسفر تحليل جدول لغرض رفض أو عدم رف anovaاستخدم البحث تحليل انحدار اختبار (.1في الجدول )في ضوء ذلك تحليل التباين بين هذه العالقات تبين التباين عن نتائج للعالقة بين السلعة وخدمة العمالء( anova( تحليل التباين )1جدول رقم ) مصدر التباين درجة مجانية مجموع المربعات متوسط المربعات 2r fالقيمة المحتسبة مستوى الروح المعنوية 5.751 5.751 1 االنحدار 0.157 10.968 29 الخطأ 0.000 36.70 0.34 16.719 30 مجموع n = 31المصدر: أعده الباحثان، استنادا إلى مخرجات اآللة الحاسبة اإللكترونية فقد أشار إلى القيم المبينة على النحو التالي: معامالت العالقةأما بالنسبة لجدول ( معامالت العالقة بين السلعة وخدمة العمالء2جدول رقم ) نموذج اإلصدار المعامالت غير القياسية بيتا t الروح مستوى خطأ قياسي معامل بيتا المعنوية 0.333 2.022 مستقر 0.59 6.070 0.000 )خ( جيدة نوعية 0.522 0.086 6.058 0.000 n = 31، استنادا إلى مخرجات اآللة الحاسبة اإللكترونية الباحث المصدر: أعده البحث المكونة من التباين وجدول المعامالت للعالقة بين جودة السلعة وخدمة العمالء على مستوى عينة ويتضح من جدول تحليل (، ودرجة الحرية 0.05) الروح المعنوية(، ومستوى 3.92كبيرة عند مقارنتها بقيمتها الجدولية البالغة )( f، أن قيمة )شخصا( 31) (1,29 ،) t نحنى االنحدار كاف لوصف العالقة بين يشير إلى أن م (x وy1 )( حيث 0.95وبمستوى الثقة ) أن ذلك يؤكده القيمة (.1.66( أكبر من قيمتها الجدولية )6.058على مستوى عينة البحث )( t) المحسوبة كانت قيمة( ، t) للربط باختبار ( xالمعنوية ) ( عندما تكون جودة السلعة تساوي صفرا. 2.022إلى وجود مبيعات مقدارها )( a = 2.022) المستقرفي ضوء معادلة االنحدار، يشير ( في 1إلى أن التغيير بنسبة ) tiيشير (. xوهو ما يرتبط ب )( β = 0.59أما قيمة الميل الهامشي عند مستوى عينة البحث فقد بلغت ) ( في خدمة العمالء. 0.59ى تغيير قدره )جودة السلعة سيؤدي إل american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 31 www.americanjournal.org أشارت قيمة معامل التحديد )r2( إلى معامل حوالي )0.34 (، مما يعني أن جودة السلعة تفسر )0.43( من التباين في خدمة العمالء، على قوة نموذج يدل وهو مؤشر جيد، المتغيرات التي لم تدخل نموذج االنحدار غير المبرر يرجع إلى ( من التباين0.57حيث أن ) الفرضية االنحدار. على أساس هذه النتائج ، ال يتم رفض ات االستنتاجات والتوصي أوال: االستنتاجات بأداء دورهومن خالل الجانب النظري للدراسة اتضح لنا أهمية تطبيق أبعاد الجودة السلعية التي من خاللها تقوم خدمة العمالء لتحقيق النجاح للمنظمة. المظهر، الموثوقية، مطابقة وجدنا من خالل الدراسة أن هناك عالقة موجبة بين األبعاد األربعة لجودة السلعة )األداء، -1 المواصفات( وخدمة العمالء. اتضح لنا من خالل الدراسة أن هناك تأثيرا كبيرا بين األبعاد األربعة لجودة السلعة )األداء، المظهر، الموثوقية، مطابقة -2 المواصفات( وخدمة العمالء. لكن في ظل التطور الحالي من األفضل استخدام الجودة . يعتبر استخدام السعر كوسيلة لمواجهة المنافسين طريقة جيدة، و3 الممثلة في أبعادها لمواجهة المنافسين وزيادة تحقيق خدمة العمالء. . نظرا لشدة المنافسة بين منظمات األعمال فإن استخدام بعض األساليب لجذب العميل مثل تقديم خدمات ما بعد البيع يعتبر أمرا 4 قيد المناقشة ال يقدم مثل هذه الخدمة. المصنعإن مهما، وعلى الرغم من ذلك ف . تحقيق ومعرفة المواصفات التي يريدها العميل تمكن الشركة من إنتاج منتجات تتفق مع تطلعات ورغبات العميل. 5 وبالتالي زيادة خدمة العمالء. ،. يعتبر استخدام اإلعالنات كوسيلة للترويج للمنتجات من األمور المهمة لزيادة المبيعات6 التوصيات : ثانيا األبعاد األربعة للنوعية الجيدة بينمن خالل االستنتاجات التي توصلنا إليها ، والتي تبين من خاللها أن هناك عالقة ارتباط وتأثير وخدمة العمالء. وفي ضوء ذلك، فإن التوصيات التي توصلنا إليها هي كما يلي: ضرورة توجيه انتباه المنشأة قيد النظر لتطبيق مبادئ األبعاد األربعة ذات النوعية الجيدة )تطبيق جزء أو كل األبعاد( لما لها -1 من أثر في تحقيق خدمة العمالء ورضاهم. سائل اإلعالنية ضرورة توجيه اهتمام المنشأة إلى وسائل اإلعالن عن منتجاتها من خالل المعارض والملصقات وغيرها من الو -2 بهدف إعالم المستهلكين بمنتجاتها بشكل أفضل. تتمتع بها شركة اإلسمنت العراقية التي . محاولة إيجاد منافذ توزيع أكبر لمنتجاتها داخل البالد وخارجها نظرا للسمعة الطيبة 3 والتي يقابلها قصور في التوزيع. . إدخال التكنولوجيا الحديثة لتطوير واقع العمل. 4 5 .ingrovidp .خدمات ما بعد البيع أكثر بسبب أهميتها للعميل .المصنع. معرفة األبعاد )الخصائص( التي يريدها العميل أمر ضروري لوضع خطط واضحة من أجل تطبيقها في 6 مراجع المصادر العربية أوال: الكتب العربية . 2001دار وائل للنشر، عمان/ األردن/ ، مدخل إلى المنهجية المتكاملة إلدارة الجودة الشاملةعقيلي، عمر وصفي، .1 .2004، دار وائل للنشر، إدارة اإلنتاج والعملياتالنجار، د. صباح الخير د. عبد الكريم محسن، .2 )مقاربة كمية(، الوراق للنشر المستهلك إلى المستهلكإدارة الجودة الشاملة من الفاضل، مؤيد عبد الحسين، يوسف سميم، .3 .2004والتوزيع، عمان/ األردن/ . 2002دار وائل للطباعة والنشر، ، iso14000، iso 9000 الوهاب، نظم الجودة واإلدارة البيئيةالعزوي، محمد عبد .4 والمنظمة الدولية ( tqm) الشاملةإدارة الجودة الطائي، الدكتور حميد عبد النبي، د. رضا صاحب، د. سنان كاظم، .5 .2003للتوحيد القياسي، الوراق للنشر والتوزيع، عمان/ واألطروحات الرسائلثانيا: american journal of business management, economics and banking volume 9 feb., 2023 p a g e | 32 www.americanjournal.org من شركة بعقوبة لتغليف المواد الغذائية 9002سالم، مها كامل جواد المصطفى، تصميم نظام الجودة بموجب متطلبات األيزو -1 2001رسالة ماجستير غير منشورة، جامعة بغداد، وتجهيز التمور المحدودة، العامة -2 الشركة من تحليلية دراسة تنافسية، ميزة لتحقيق العمالء رضا على الجودة أبعاد تفضيالت أثر عيد، بشرى إبراهيم، .2006للصناعات الجلدية، رسالة ماجستير غير منشورة، الكلية التقنية، سياسة تسويق الخدمات في المصارف التجارية العراقية وأثرها على جودة الخدمة )دراسة استطالعية البصري، عبد الرضا شفيق، -3 .1998آلراء عينة من المديرين والعمالء(، رسالة دكتوراه غير منشورة، جامعة بغداد، third: the foreign books 1. etze/michae/ , walkerbruce. j. ,stantonwilham. j. : 1997 , marketing , lrwin, mcgrawhi//, new york , san francisco, 2. gravens, dauid, w., "strategic marketing", sthed, irwin mc gramhill,2000. 3. evans, james, r., james w dean, jr,"total quality management organization and strategy, 3rd ed, thomson southwestern, 2003. 4. kotler, p. & armstrong, g, "marketing i am introduction 7th ed, prentice hall, u.s.a., (2005) 5. krajewski, lee, j and larry p. ritzman, "operation management strategy and analysis", 3rd ed, wesley publishing company, 1993. 6. kotler,philip,marketing management,8th ed,prentice-hall international inc , (2003) 7. dilworth, james, b, "operation management, design, planning, and control for manufacturing and service", 3rd ed, m c gramhill, in c. , 1992. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 185 www.americanjournal.org using the ability of the emanagement strategy to build strategies to address job burnout in educational institutions: an applied study on a sample of administrative staff working at babylon university mawed kadhim jaber (master) lecturer department of business administration college of administration and economics university of kerbala mawed.k@uokerbala.edu.iq a b s t r a c t k e y w o r d s emanagement strategies are at the heart of the technological developments that have conquered the modern world, because it has become a necessity for organizations and institutions to evolve and keep up with the changes in today's work environment, and because their application reflects the manifestation of this willingness in organizations and institutions across the board. contributions to aspects, including its direct contribution to reducing or reducing the level of work fatigue and finding effective solutions and properly solving these problems. therefore, the problem to be addressed in this study is identified and represented by the following question: to what extent does this strategy (e-management) contribute to reducing burnout at work and to what extent can appropriate strategies be found to deal with it? the researcher aimed to use questionnaires as the main data collection tool for research samples, and randomly selected (45) administrative employees of different ranks, of whom 39 were recovered for analysis, with a response rate of (68%) . this study used statistical methods based on the spss program for data processing and analysis. the main conclusion is that electronic management strategy is a new management method that has brought profound changes to the management environment of various social organizations. one of its advantages is that it provides the best services to the beneficiaries and better performance to employees and workers. emanagement, burnout, building strategies. introduction it is an agreed upon fact that the world, in its second millennium, is experiencing a revolution at all levels in general and a massive information revolution in particular, one of the results of which was the control of economic, administrative and political institutions, especially after the spread of american journal of business management, economics and banking volume 20 january, 2024 p a g e | 186 www.americanjournal.org electronic business, global internet networks, and local and global information and communications systems. it has begun to play an important role in achieving development at various levels, which contributes to linking citizens with the institutions they wish to deal with. the emanagement strategy depends on developing the information structure within the institution in a way that achieves integration of the vision and then business performance. thus, emanagement has become a necessary and urgent strategy and work method imposed by internal and external circumstances and challenges. in contrast to these tremendous developments, the pressures that are considered one of the obstacles of this era have grown, as these pressures have become a natural aspect of human life that cannot be avoided. there is no profession that is immune from these pressures, includes work stress that results in a state of physical, mental, emotional and motivational exhaustion. due to the increasing pressures and demands on the individual which he cannot tolerate, especially when his ambitions do not match the reality of what he can actually achieve. until the employee reaches what is called (burn out), which is what usually afflicts the individual when he stays at his job without any change or development for a period of seven years or more. in this research, we try to shed light on the emanagement strategy and the extent of its ability. in influencing the reduction of the level of job burnout and finding appropriate solutions for it, this study was applied to the research sample, which was represented by a number of employees of the university of babylon. ii. research methodology first : research focus the purpose of the research is to achieve the following objectives : 1identify the concept of e-management strategy and indicate its importance and ability to positively impact management functions. 2identify the elements and their barriers to the application of e-management , university of babylon. 3to achieve the effectiveness of emanagement applications as a mechanism that helps to stop, reduce or reduce the situation of work burnout among administrative staff of the university of babylon and to find solutions. second : research questions : the problem of the study stems from the fact that the application of emanagement methods and their strategies will help to ensure that the tasks assigned to individuals are performed with speed and effectiveness, thus reducing or alleviating the level of fatigue at work. the workplace, as organizations invest in and adopt emanagement of data to perform their missions has become critical: what impact does emanagement and its strategies have on reducing or reducing burnout and finding solutions? and to reveal whether there is a link between the application of e-management and its strategies that help prevent or reduce burnout from the perspective of administrators at the university of babylon. third : importance of research: the importance of this study is that it involves one of the important scientific data represented by the development of emanagement strategies to determine the importance of its investment and abandonment of records management and traditional book management, especially in the rapidly american journal of business management, economics and banking volume 20 january, 2024 p a g e | 187 www.americanjournal.org advancing fields of science and technology situation. communication, it is then necessary to invest this progress in the services of institutions to contribute to the completion of their work at the lowest material and human cost, reducing the burden on beneficiaries of corruption in the management of these institutions. the importance of research can be summarized as follows : 1. the study focuses on the importance of e-management strategies and their contribution to the positive impact on the overall administrative function. 2. this study attempts to use data on e-management strategies to reduce burnout and find solutions. 3. the study will help to increase technological awareness among iraqi universities, thereby promoting the introduction of electronic services in various university institutions. 4. this study was conducted at a time when our university institutions have little real investment in electronic administrative data and its importance. 5.this study aims to answer whether there is a link between the use of information technology and job burnout from the employees' perspective. fourth : research model : the research question requires a systematic approach based on the design of its formalistic structure and hypothesized model, as shown in figure 1 , describing the relationship between correlations and effects . this study contains two variables, one is the independent variable (emanagement) and the other is the dependent variable (burnout) , each variable has multiple dimensions: figure (1) : virtual search form fifth : research hypotheses : to achieve the objectives set for this study and to test its model, the following hypotheses emerged : a: the first major hypothesis : there is a moral correlation between the use of emanagement and its strategy and job burnout among administrative employees at the university of babylon, from which the following subhypotheses emerged: moral correlation moral impact american journal of business management, economics and banking volume 20 january, 2024 p a g e | 188 www.americanjournal.org 1. there is a moral correlation between e-management and psychological stress at the university under research. 2. there is a moral correlation between e-management and the feeling of personal accomplishment at the university under research. 3: there is a moral correlation between e-management and inhumanity in the university under study. b: the second main hypothesis : there is a moral impact of the e-management strategy in the dimensions of job exhaustion among administrative staff at babylon university, and the following sub-hypotheses emerged from it : 1there is a moral impact of the e-management strategy and psychological stress at the university under consideration . 2there is a moral impact of the e-management strategy and a sense of personal achievement at the university under consideration . 3there is a moral impact of the strategy of e-management and inhumanity in the university under consideration . iii. theoretical aspect first : e-management strategy 1 the concept of e-management strategy : there have been many and different opinions of jurists and researchers on defining the concept of electronic management, as no precise and specific definition has been reached regarding the latter, because it is considered one of the new and modern administrative terms . the rapid development of information and communication technology has led to the emergence of new management models and methods in the face of competition, as well as the increasing challenge of bureaucratic departments to improve work levels and service quality, which is called digital management, egovernment management or electronic management. it can be seen that the emergence of electronic management appeared after the rapid qualitative development of e-commerce and ebusiness and the popularity of the world wide web. (yassin , 2005 :3) . al-omari believes that the interest in emanagement arises as management begin to focus on transparency in their dealings with others and deepen the use of digital technologies to advance economic, social and political development goals ( al-omari, 2004 : 14) . it can be said that the emergence of e-management as a modern concept is the result of a qualitative development produced by modern communication technologies, in light of the information revolution, the increasing need to employ modern technology in the management of citizen relations and institutions, linking public administrations and ministries through the mechanisms of technology, and thus a radical transformation in traditional management concepts and their development . emanagement in its modern sense is the completion of administrative transactions and the provision of public services via the internet without customers having to move to the departments personally to complete their transactions with what corresponds to a waste of time, effort and energy (atiyah and khalil, 2018 : 318). as for the world bank experts, they defined it as "a modern term that refers to the use of communications and information technology in order to increase the efficiency, effectiveness, transparency and accountability of the government in providing services to individuals and the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 189 www.americanjournal.org business community by enabling them with information to support all government procedural systems and eliminate corruption. (aggression, 2018: 11). hijazi defined e-management as (reinventing government business through new methods, integrating and integrating information and providing an opportunity to access it through a website) (hijazi, 2018 : 34) from halima's point of view, e-management is a concept that refers to the use of information and communication technologies in order to increase the efficiency, effectiveness and transparency of the government in providing services to the citizen ( halima, 2019: 3). or is it "an administrative strategy for the information age, working to achieve better services for citizens, institutions and their customers (private management among them) with optimal use of available information resources through the use of material, human and moral resources available in a modern electronic framework in order to optimize the use of time, money and effort and to achieve the target demands and the required quality" ( www.marefa.org). 2 the characteristics of electronic management : when applying electronic management, data and documents are traded electronically through the use of electronic communications, where there are parties dealing together and at the same time on electronic communication networks. solutions are also found for all the obstacles faced by customers using the technology of the current reality, where many physical and human assets are often excluded or reduced to a minimum. these characteristics will be described below : a-super-networking: this networking works within the framework of maximizing the network's potential according to metcalfe's law, which is based on the fact that the real value of each network with a two-way connection is equal to the square of the potential of the number of participants in it ( friday, 2014: 8) b-real-time interaction around the clock, here and everywhere: this is through direct live interaction between customers and it works according to the rule of 24 hours /day and 7 days a week . which provides the possibility of dealing and working in real time with employees located anywhere in the world easily, conveniently and at a limited communication cost ( najm, 2009 :159 ). c-high-speed resources, remote and limitless work: the speed of electrical connection is close to the speed of light, as it takes about 15 seconds to send a message from one continent to another via email. the main feature of business or electronic work is the possibility of working without limits, and this feature undoubtedly leads us to develop management's view of itself and its intrinsic ability towards more massive and flexible organization ( najm, 2009 : 160). d-direct and honest control: one of the characteristics of e-management is also that it has become able to follow its various work sites through screens and digital cameras, which e-management can highlight on each of its administrative sites, as well as on its outlets and devices that the public deals with, and so the administration has the guaranteed honest tool, with which it assesses its activities and follows up on its sites with confidence away from the method of follow-up with memos and reports submitted by individuals in traditional departments, with known problems, foremost of which is the lack of transparency in many cases as well as the slowness of this method, and this difference can be clearly revealed when we imagine two departments, one of which is sitting waiting an observer or a group of observers sent by her to write reports about a site, follow the progress of work http://www.marefa.org/ american journal of business management, economics and banking volume 20 january, 2024 p a g e | 190 www.americanjournal.org on it, and another sits in place watching the movement of work on this site directly, and also hears everything that is going on there ( al-hassan, 2009 : 21 ) e-confidentiality and privacy: one of the characteristics of emanagement is the confidentiality and privacy of important information with the programs owned by that department that enable it to withhold important information and data, and not to make it available only to authorized persons who have the password ( al-hassan, 2009 : 21 ). f-increasing mastery: e-management as a modern mechanism in administrative development processes, and organizational change represents a critical juncture in the form of traditional administrative tasks and activities, and has the most important advantages, the most important of which is the immediate processing of requests ( abdul karim, 2010 : 1) 3: the dimensions of emanagement the application of emanagement requires the need to provide basic elements that translate electronic works and create jobs that fall within the context of electronic transformation in traditional management, these elements are: computers, networks, software and systems, databases, human cadres, experts and specialists who represent the human and functional structure of the e management system : acomputer hardware and accessories : due to the development of computer programs and the increasing number of users of company equipment, it is better for companies to strive to have the latest hardware manufacturers in the world to achieve two basic advantages ( abu amona, 2009: 37). 1saving on continuous development costs and maintenance costs. 2-the suitability of computer hardware for software developments and information systems software. b-networking : they are the electronic links extending through the communication fabric of intranet , extranet and internet networks, which represent the value network of the enterprise and its e management (yasin, 2005:24). c-software and databases : software: software is a set of programs used to operate a computing device and use its various functions, or detailed instructions that control the operation of a computer system. there are two types of software: 1-system software : it manages and monitors computer activities. 2-application software : it is the one that takes care of completing tasks for end customers . 3-databases : are a set of logical data elements linked to each other by a mathematical relationship, where it consists of a table or several tables, and the table consists of one or more records, and the record consists of one or more fields and is written in a certain programming language. d-human cadres : knowledge creators are the most important elements in electronic management systems. they are managers and analysts of the knowledge resources and intellectual capital within the organization , on the one hand, knowledge creators control the strategic coordination of electronic management elements, and on the other hand, they change people's general way of thinking about knowledge culture. (najm, 2009 : 309-310). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 191 www.americanjournal.org figure no. (2) dimensions of electronic management source: musa abdul nasser and mohammed qureshi , the contribution of electronic management to the development of administrative work in higher education institutions, p. (90) at disposal . it can be seen from figure (2) that the elements and pillars of emanagement are not independent of each other, but interact, influence and influence each other. for example, the efficiency and quality of a computing device affects the efficiency of the remaining components and their ability to perform electronic functions. second: burnout there are many obstacles in the work area that prevent the employee from performing his full role, which makes him feel that he cannot perform the required work to the extent expected by others, and if this happens, the relationship between them will be affected. the worker and his work take on a negative aspect, which has a devastating impact on the entire professional process. this feeling of helplessness with exhausted efforts can lead to a state of exhaustion and emotional exhaustion, which can be defined as psychological or professional exhaustion. burnout (al-zahrani , 2008:18). although the study of functional combustion phenomena is relatively new, many studies have described and classified it in different ways, resulting in various combustion definitions characterized by conceptual disagreements (al-kalabi and rashid, 2001: 116). 1: what is burnout : opinions differ on what constitutes burnout , preventing researchers from developing a specific, agreed-upon definition for it. as researchers define definitions based on their use, these definitions can be divided into the following three directions: a:the first direction : definition according to burn out sources (maslach & jackson , 1981:99) defining it as “a personal feeling of emotional exhaustion, emotional blunting, and low sense of personal accomplishment.” they define emotional exhaustion as "an individual's sense of loss of work energy, sense of accomplishment, and increased demands on his or her job" and emotional blunting as "an individual's sense of negativity, rigidity, and increased demands on his or her job." emotional imbalance”. and low personal achievement is defined as “a person who feels that his success rate is low and believes that his or her efforts are in vain.” dimensions of emanagement networks computers hardware / accessories human cadres software / databases american journal of business management, economics and banking volume 20 january, 2024 p a g e | 192 www.americanjournal.org (freudenberger , 1975 : 73 ) defined functional burnout as: "a state of extreme fatigue that occurs as a result of additional and endless stresses and demands that fall on individuals at the expense of their energy and strength". (bakker & demerout, 2007: 309) defines it as: "a psychological feeling that comes from the exposure of employees to stressful working conditions characterized by a high curve of requirements and a low curve of capabilities and available resources". as for the researchers (perlman & hartman, 1982: 284), they have developed a definition and stated: " job burnout is a response to emotional stress caused by psychological stress, low performance at work and a dry manner of dealing with others" . b: the second direction: definition according to the symptoms of functional burnout and their relationship to its causes (al-kelabi & rasheed, 20011:13) defining it as: "a state of emotional, intellectual, and physical exhaustion that manifests as an expression of an individual's response to stress at work and in longterm organizational relationships.", and this state is represented by the individual's feeling that his emotional sources are depleted, his tendency to evaluate himself negatively, his sense of low efficiency at work and loss of personal commitment in work relationships, in addition to losing the human element in dealing with others inside and outside the organization. (abu hadrous & al farra ,2007:123) defines the phenomenon of job burnout among employees in the teaching profession specifically as: "a work-related psychological phenomenon that afflicts faculty members and makes them unable to carry out professional burdens, and to provide assistance to their students as they would like, generating a general feeling of insignificance of the results of work . as for ( gurbuz, et. al , 2007:65) they define it as: "the state in which an individual begins to accept himself as an unsuccessful person, and feels tired and exhausted physically and morally, resulting from the aspiration to achieve large and difficult to achieve goals, and feeling disappointed as a result of failure to achieve those goals". it is defined (adekola , 2010 : 886) as : "it is an emotional disorder that most likely affects individuals who work with people directly, in addition, it is a negative and cynical development of attitudes and feelings towards co-workers and the public". while (rafie & alkodat,2008: 297) defined it as " a psychological phenomenon that afflicts faculty members with fatigue, fatigue, lack of enthusiasm, low motivation and resistance to change, resulting from additional internal and external burdens , with which the member feels unable to bear them, and this negatively affects his teaching performance, providing assistance to his students as they would like, and performing the tasks assigned to him diligently and proficiently". abdurrahman defined it as : a psychological or mental condition that affects individuals who work in professions that are characterized by dealing with many people , and these workers usually give more than they take ( abdurrahman, 1992: 3). (al-kalabi and rashid, 2001: 118) defined burnout as " a state of emotional, intellectual and physical exhaustion, which is in the form of expressions that an individual uses towards his work as responses to stress and chronic organizational relationships . this condition is represented by the individual's feeling that his emotional sources are depleted, and he tends to evaluate himself negatively, and his american journal of business management, economics and banking volume 20 january, 2024 p a g e | 193 www.americanjournal.org sense of low efficiency at work and loss of personal commitment in his work relationships, in addition to losing the human element in dealing with others inside and outside the organization " . c: the third direction: definition according to the effects caused by burnout and the extent of response to it according to ( al nafiey , 2000: 55), it is " the perceived state of emotional exhaustion or psychological stress, negative attitudes and sarcastic feelings with reviewers and colleagues that are formed among employees, as well as negative self-report of themselves regarding their assigned work and their relationships with reviewers, colleagues and the organization in which they work". as for (trievedi & shukla, 2008: 320) define it as: "inability to fulfill the required service requirements as expected, represented by emotional exhaustion, apathy, physical fatigue, low energy, mental illness, increased drug and alcohol abuse, ridicule of everything, unjustified anger, frustration, low personal achievement". al-rashdan believes that job burnout is a state of depletion of the individual's psychological energy , which leads him to a state of psychological imbalance, "disorder", which appears as a result of severe psychological stress caused by workloads and requirements, which directly negatively affects the clients and the organization in which the individual works ( al-rashdan, 1995 : 24). ( al-hayek, 2000: 21) i knew him of a state of disorder, stress, and job dissatisfaction that afflicts humanitarian and social workers resulting from severe psychological pressures that subject him to burdens that lead to depletion of his qualities and efforts, which brings him to an unacceptable level of performance. "a state of stress that affects the individual as a result of overworked workloads and results in a set of psychological, physical and mental symptoms" (al-zeyoudi, 2007: 192) . 2 : burnout levels : if burnout occurs in consecutive stages, then it has three consecutive and ordered levels, namely (badran , 1997 : ) a-acceptable psychological burnout: resulting from recurring fatigue, anxiety, depression and irritability. b-moderate psychological burnout: the same reasons as the previous stage, but it lasts longer, "at least two weeks", and cannot be effectively dealt with. c-severe psychological burnout: caused by physical symptoms such as ulcers, chronic back pain, and severe headaches, it is not surprising that employees feel moderate to moderate feelings of psychological burnout from time to time, but when these feelings persist and become with chronic physical and mental illness, burns become a serious problem (al-hayek, 2000 : 20). 3: the dimensions of burnout : the researchers maslach and jackson (maslach & jackson , 1981 :109) pointed out the existence of several dimensions of the phenomenon of functional combustion, as follows : adimension emotional or psychological stress. bdimension feeling blunting . cdimension lack of sense of accomplishment. we will briefly explain these three dimensions : american journal of business management, economics and banking volume 20 january, 2024 p a g e | 194 www.americanjournal.org the first dimension is the loss of the employee's self-confidence and morale, as well as the loss of interest and care for the beneficiaries, which drains all his energy and gives people the feeling of a dry source of emotion. if employees feel they are unable to continue to perform or perform their duties to beneficiaries at their previous level, this feeling of emotional exhaustion may be accompanied by frustration and psychological distress ( maslach &jackson, 1981:109) . the second dimension is a low sense of personal accomplishment, which is characterized by a tendency for individuals to have negative self-evaluations and a sense of failure, as well as a low sense of productivity at work, successful completion of work, or interaction with others. others. this occurs when employees feel they have lost personal involvement in their work relationships (cords & dougherty, 1993: 623) . the third dimension is the loss of the human or personal element in dealing with them, which includes their tendency to depersonalize the beneficiaries with whom they deal, whether they are within or outside the organization. the loss of the human or personal element of the interaction means that individuals are viewed as objects rather than people. in this case, the employee is characterized by being cruel, pessimistic, constantly criticizing and blaming his colleagues, his beneficiaries and the organization (maslach & pines, 1977:107) 4: the stages of burnout : the phenomenon of combustion does not occur suddenly, but includes the following stages (ali, 2008: 45 ) a-the stage of absorption : in it, the level of satisfaction with work is high, but if there is an inconsistency between what is expected from work and what is happening in reality, the level of satisfaction begins to decrease. b-inertia stage: in this stage, growth is slow, job satisfaction gradually decreases, work efficiency decreases, work performance level decreases, individuals feel that their physical health is in poor condition, and they turn their attention to other aspects of life, such as hobbies, social interaction, etc. spend your free time. c-dissociation stage: in this stage, the individual realizes what has happened and begins to experience psychological withdrawal, physical and psychological illness, and high levels of psychological stress. d-critical stage: is the largest stage in the combustion chain, where physical, psychological and behavioral symptoms worsen and become dangerous, and the individual’s thinking is disturbed by self-doubt. the individual reaches the invasion (explosion) stage and considers resignation and possibly suicide. iv: practical side : analysis of results first : community and sample study : the university of babylon was chosen to be the field of current study for the possibility of testing the variables of study at the university more accurately than other organizations because its employees have a variety of educational levels commensurate with the goals of the current study . 1data sources and collection methods : data was collected from both primary and secondary sources as the study was based on collection of data from primary sources by using questionnaire method to cover the actual scope of the study with american journal of business management, economics and banking volume 20 january, 2024 p a g e | 195 www.americanjournal.org variables designed to benefit the field several specialized studies. at the same time it relies on existing books, published studies and journals to build the theoretical framework of the study from secondary sources. 2statistical data analysis methods: in order to make the research indicators accurate and serve the current research and test the hypotheses, this study relied on a variety of statistical methods and institutions: a-percentage, number of replicates, arithmetic mean, and standard deviation to describe and diagnose study variables. b-simple correlation coefficient, used to determine the strength and nature of the relationship between study variables. c-simple linear regression measures the significant impact of the independent variable on the dependent variable. use a statistical program (spss: v25) to find and extract iterative distributions, arithmetic means, and deviations, and to find correlations and regression results. 3-characteristics of the research sample: (45) questionnaires were distributed to the administrative personnel of the universities under investigation. the questionnaires were collected, of which (39) were effectively analyzed, with an effective rate of (68.6%). table (1) shows the distribution of target groups according to personal characteristics table (1) personal characteristics seq. characteristics categories n. rate 1 age less / (35) 10 25.6 )35( )45 ( 14 35.9 more / )45 ( 15 38.5 total 39 100 2 sex male 33 84.6 female 6 15.4 total 39 100 3 graduation ph.d. 8 20.5 masters 23 59 bachelor 8 20.5 total 39 100 4 career years less / (3) 7 17.9 )3 ( )7 ( 15 38.5 more / )7 ( 17 43.6 total 39 100 source: by researcher 4-description and diagnosis of study variables : this axis involves the description and diagnosis of the e-management areas mentioned in the theoretical aspects of the study and approved in the study model (computer hardware and accessories, networks, software/databases and human cadre). and the dimensions of burnout (psychological stress, sense of accomplishment, and inhumanity) are given, american journal of business management, economics and banking volume 20 january, 2024 p a g e | 196 www.americanjournal.org and appendix (1) shows the frequency distribution and numerical values of the arithmetic mean and standard deviation. a-components of e-management strategy : 1: computers hardware and accessories : the results in appendix (1) show that, according to its indicators (x4-x1), the targets' answers to this field tend to agree with (88.48%) of these answers, the arithmetic mean (4.14) and the standard deviation (0.697), while the percentage of disagreement on this field indicator reaches (3.225%), which indicates the availability of computers and their accessories in the studied university. indicators (x1) and (x3) have the highest degree of consistency. the consistency of the two indicators reaches (92.3%) . the arithmetic mean is (4.26) and (4.18) respectively, and the one standard deviation is (0.677) and (0.556 respectively. this shows that the universities under review pay special attention to computers and their accessories in order to continuously develop them further. the lowest compliance rate between various indicators in this field and the index (x4) is 79.5%, and the arithmetic mean of the index is (3.90) . its standard deviation is 0.940, which indicates a lack of control over user registration for logging into the system used. 2:networks : the data of appendix (1) indicate the frequency distributions, arithmetic mean and standard deviation of the statements specific to the network area (x8-x5), confirming the degree of agreement of the respondents with these statements (84.625%) with the arithmetic mean (4.17) and a standard deviation (0.661) . by following up the extent to which each indicator contributes to the field of networks, it was found that the university under study is showing increasing interest in providing a quality service. (x5) is the most significant contributor , with an agreement (97.4%) of the respondents and an arithmetic mean of (4.33) and a standard deviation (0.530). 3:software / databases : the results in appendix (1) show that the responses of respondents to this area according to their indicators (x12-x9) tend to be consistent with (85.25%) of these answers, with arithmetic mean (4.20) and standard deviation (0.855). while the percentage of disagreement for this dimension indicator reached (5.775%), which indicates the availability of indicators for software and databases provided by the universities studied. this index has the highest percentage of agreement (x11), the percentage of agreement for this index is (87.2%), the arithmetic mean is (4.28), and the standard deviation is (0.826).this shows that the universities studied are pioneers in the use of software and databases and are constantly updating and modifying them. 4:human cadres : : the data in appendix (1) is the frequency distribution, arithmetic mean and standard deviation of phrases (x16-x13) for cadre departments, which confirms the respondents’ agreement with these phrases, because the agreement percentage reaches (70.5%), this is calculated using the arithmetic mean (3.80) and standard deviation (0.942). by tracking the degree of contribution of each indicator in the field of human cadre, it can be seen that the university administration under study is aware of the various changes that can occur in the human cadre . (x14) is the most important factor and the respondents unanimously agree (79.4%) with an arithmetic mean of (4.03) and a standard deviation of (0.743). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 197 www.americanjournal.org bburnout dimensions : 1:psychological stress : the results in appendix (1) show that, according to its indicators (y5 y1), the answers of targets to this dimension tend to correspond to (70.5%) of these answers, with an arithmetic mean of (3.93) and a standard deviation of (0.984 ), while the percentage of disagreement for this dimension indicator reaches (9.76%), which shows the availability of the studied university stress indicator, although the percentage of agreement for this indicator (y2) and (y3) is the highest, with the percentage of agreement between the two indicators being (84.6 %), the arithmetic mean (4.10) and standard deviation are (0.852) and (0.788) respectively, indicating that workers sometimes feel tired and sometimes feel bored due to the new working day. the lowest consistency of this dimension indicator is the y4 index (64.1%), the arithmetic mean of the index (3.64) and its standard deviation (1.203), this suggests that the availability of job demands reduces employee frustration. 2:feeling of personal accomplishment : the results in appendix (1) show that targets' responses to this dimension based on their indicators (y10-y6) tend to be consistent with (76.4%) of these responses, the arithmetic mean (3.96) and the standard deviation (0.911), while the proportion of disagreements for this dimension indicator reached (9.76%), indicating the availability of personal fulfillment indicators in the studied universities. the highest consistency rate is the index (713), with the index consistency rate (84.6%), arithmetic mean (4.08), and standard deviation (0.963), indicating that there is a state of familiarity and cooperation between employees and their departments like a family system. 3:inhumanity : the results in appendix (1) show that the respondents' answers to this dimension according to their own indicators (y14-y11) tend to be consistent with 80.1% of the answers, with an arithmetic mean (4.05) and a standard deviation (1.016). the proportion of disagreements on this dimension reached 9.76%, indicating that the universities studied have indicators of a good treatment spirit. this index has the highest percentage of agreement (y14), with the percentage of agreement (89.7%), mean (4.36), and standard deviation (0.903) of this index indicating that the respondents are focused on others. c:testing hypothesizes : analysis of correlation relationships between study variables : the relationship between emanagement and the dimensions of functional exhaustion at the macro level of the university : in order to identify the nature of the correlation relationship between e management and job burnout at the level of the studied university, table (2) * (accreditation in the applied side of this study is based on a moral level ( 0.05 ) for the purpose of conducting statistical tests ( correlation coefficient test , t test, f test) because it is the level adopted in most administrative studies) indicates that there is a positive moral correlation between e management and job burnout, as the correlation degree (total index) reached (0.861) and thus the first main hypothesis has been realized, which means ( the pursuit of providing emanagement areas helps in reducing career burnout on this indicates that the fields of emanagement are available at the studied university at the overall level and that they have a great and effective role in reducing the levels of burnout. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 198 www.americanjournal.org 1the relationship between emanagement and each dimension of burnout at the macro level of the university under study: table (2) indicates that there is a positive moral correlation between emanagement and each dimension of burnout. it is clear from the mentioned table that the strongest positive moral correlation was between emanagement and after a sense of personal achievement , as the correlation score (total index) reached (0.835) and at a moral level (0.01), while the weakest moral correlation was between emanagement and after the availability of humanity, as the correlation score (total index) reached (0.626) and at a moral level (0.01) , and thus all the sub-hypotheses emanating from the first main hypothesis : a. there is a moral correlation between e-management and psychological stress at the university under research. b. there is a moral correlation between e-management and the feeling of personal accomplishment at the university under research. c: there is a moral correlation between e-management and inhumanity in the university under research . table (2) burnout e-management psychological stress feeling of personal accomplishment inhumanity total indicator computers hardware / accessories 0.502** 0.606** 0.412** 0.574** networks 0.477** 0.483** 0.248 0.459** software / databases 0.686** 0.659** 0.663** 0.749** human cadres 0.799** 0.774** 0.520** 0.790** total indicator 0.826** 0.835** 0.626** 0.861** p ≤ 0.05 n = 39 source: by researcher based on the results of the spss based on what has been described above , all the sub-hypotheses emanating from the first main hypothesis are accepted , which states that there is a moral correlation between emanagement and each dimension of burnout at the level of the study sample as a whole , and this indicates that the presence of emanagement tools addresses and reduces and contributes to reducing the levels of burnout. 2-analysis of influence relationships between study variables : in order to find out the extent to which there is a moral impact of emanagement in the dimensions of burnout , the study model and the second main hypothesis necessitate determining the impact of the fields of emanagement in the dimensions of burnout in a total and partial manner, and this is stipulated by the second main hypothesis and the sub-hypotheses emanating from it, and then comes the analysis of the impact of the study model variables as well as the interpretation of statistical results. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 199 www.americanjournal.org a:the impact of the fields of electronic management in the dimensions of functional exhaustion at the macro level of the university under study : the analytical results in table (3) indicate the presence of a moral impact of the fields of e management in the dimensions of burnout , and this is supported by the calculated value (f) , where it reached (106.209) , which is greater than its tabular value (4.05) and at a moral level (0.05) and a degree of freedom of (37.1) , which indicates that the regression curve is good at explaining the relationship between the fields of emanagement and the dimensions of burnout and on the aggregate level, the determination coefficient ( r2) the value of (0.742), which indicates the ability of the independent variable to explain the effect that occurs in the dimensions of burnout by about (74.2%), and this is reinforced by the value of the regression coefficient (beta) (0.861) , which means that the burnout at the university the study sample will change by (0.681) if the interest in emanagement increases by one unit and the value of (t) calculated at (10.306), which was greater than the tabular value as well. i / variable d / variable emanagement b beta t f r2 psychological stress 1.341 0.826 8.918 79.534 %68.2 personal accomplishment 1.495 0.835 9.230 85.198 %69.7 inhumanity 0.917 0.626 4.887 23.886 %39.2 total indicator (burnout) 1.251 0.861 10.306 106.209 %74.2 df (1, 37) n = 39 p ≤ 0.05 (t) tabular = 1.68 (f) tabular = 4.05 source: by researcher based on the results of the spss. b:the impact of the fields of emanagement in each dimension of burnout at the macro level of the university under study : from the results in table (3), we can see that the e-management regression coefficient value of psychological pressure is (0.826), which means that the psychological pressure of the research university has changed (0.826). ) if interest in electronic management increases by one unit. this is supported by the fact that the calculated value of the regression coefficient (t) reaches (8.918) and the calculated value (f) measuring the morality of the regression model reaches (79.534). from the table it can be seen that the two values are at (1%) level. the coefficient of determination (r2) of this model was 0.682, indicating that the independent variables were able to explain approximately 68.2% of the effects of emotional stress. the results obtained support the acceptance of the first sub-hypothesis, which states that emanagement has a moral impact on psychological stress in the universities studied. the regression coefficient of electronic management on personal performance reaches (0.835), which means that when the interest in electronic management increases by 1 unit, the change in personal performance of the studied university is (0.835). this is supported by the fact that the calculated value of the regression coefficient (t) reaches (9.230) and the calculated value (f) measuring the morality of the regression model reaches (85.198). from the table it can be seen that both values are at (1%) level. the coefficient of determination (r2) of the model is 0.697, indicating that the independent variables can explain 69.7% of the impact on individual performance. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 200 www.americanjournal.org the apparent results support the acceptance of the second sub-hypothesis, which states that there is a moral impact of e-management on personal accomplishment at the university under study the regression coefficient of electronic management on inhumanity reaches (0.626), which means that when people’s interest in electronic management increases by 1 unit, the inhumanity of the university studied changes (0.626). this is also supported by the calculated value (t) of the regression coefficient reaching (4.887) and the calculated value (f) measuring the morality of the regression model reaching (23.886). it can be clearly seen from the table that these two values are located (1%) level. the coefficient of determination (r2) of this model is (0.392), indicating that the ability of the independent variables to explain the inhumane effects is approximately (0.392%). the above results support the acceptance of the third sub-hypothesis, which states that there is a moral effect of e-management in the inhumanity of the university under study . v : conclusions and recommendations in this section , we will discuss the most important conclusions reached by the research, which are as follows : first : conclusions 1the e-management strategy is a new style of management that has brought about profound changes in the management environment in various social organizations. one of its benefits is to provide the best services to beneficiaries, and better performance for employees and workers . 2the e-management pattern has brought about a significant transformation in the traditional management functions in terms of planning, organization, leadership and control by restructuring administrative procedures, redistributing tasks and powers, and delegating authorities. 3the people surveyed have a good concept and vision of the concept of e-management and its direct impact on the performance of their daily blindness . 4those in charge of the university sample study should have the necessary knowledge of what the availability of infrastructure means for the requirements of applying the e-management strategy between the university and its departments. 5the close link between e-management and burnout means that the university is being studied and through this it can find effective solutions to control or reduce the indicators of high burnout. 6the university under study can end the phenomenon of levels of burnout among its working personnel if appropriate plans are developed to control those levels . 7referring to the results of the statistical analysis of the impact relationships between the study variables, it was found that there is a good effect of e-management in burnout , which means that it can be used to find out what it means to pay attention to e-management in raising performance levels for workers. second : recommendations this aspect of the research will address the codification of the most important recommendations reached by the study, namely : american journal of business management, economics and banking volume 20 january, 2024 p a g e | 201 www.americanjournal.org 1strive to work to spread the culture of the importance of e-management , create the appropriate and supportive environment for it and draw plans to ensure its development and development . 2among the treatments recommended by the study, it is necessary to adopt feedback from employees and workers in order to know their orientations regarding the development of infrastructure to draw the appropriate strategy for e-management. 3ensuring the dissemination of the spirit of competition and providing the appropriate climate for creative workers, encouraging and rewarding them , and taking new ideas and trying to implement them. 4emphasizing the role of the university by conducting and seeking research and development and following up its employees and the atmosphere surrounding them to pay attention to the levels of burnout . 5one of the solutions proposed by this study is to set standards that are at the level of a scale or standards that take upon themselves to sound the alarm if the level of burnout reaches a certain limit so that the university under study can take precautionary measures . 6the university under study, among the proposed solutions and treatments , can be in direct contact with the new technology, which will reduce the levels of routine and monotony surrounding the workers and employees to help them overcome the degrees of burnout they are going through . 7it is necessary and one of the self-imposed solutions that the university leaders of the study sample realize that the e-management strategy has become more of a necessity than an obligation to face the routine that envelops most of the time of employees and employees to prevent them from falling into the net burnout . 8work on planting the roots of motivation for the departments working at the university sample study to increase their capabilities , resources and expertise. 9seeking to create and provide all possibilities for employees and workers , especially those who possess talents, abilities and distinct possibilities, taking into account finding a state of guidance, encouragement and support for them to be an example to be emulated by the rest of the employees. references 1. abdel fattah bayoumi hegazy , (2018) ," e-government between reality and ambition", 1st floor, university thought house, egypt . 2. abu hadrous, y. & al farra, m. (2007) , " job burnout of the teachers working in gaza and its relativeness to the scale of their educational performance and their professional excellence " , faculty of education magazine, baniswaif university, (7),. 3. adekola, b. (2010) , "gender differences in the experience of work burnout among university staff " , african journal of business management , south africa, 4 (6),. 4. al kelabi, s. & rasheed, m. (2001) , " the psychological burnout: an exploratory study for maslach inventory applied on employees in riyadhksa ", king saoud university, 13 (1),. 5. al nafiey, d. (2000) , " the psychological burnout in the governmental service providing organizations in jeddah governorate ". king ben abdulaziz university magazine, ksa, 14 (1),. 6. al rafie, y. & alkodat, m. (2008). " the levels of the psychological burnout of the staff members at the faculty of teachers in abha during some vicissitudes ". om al qura university magazine 2 (2),. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 202 www.americanjournal.org 7. al-hayek , hayam (2000) , " combustion levels among computer teachers in jordanian public schools " unpublished master's thesis , yarmouk university, irbid-jordan. 8. ali , hossam , (2008) , "psychological exhaustion and its relationship to marital compatibility and some demographic variables in a sample of teachers of special categories in minya governorate", a master's thesis in unpublished, minya university, j.m.p. 9. al-kalabi , saad , and rashid, mazen, (2001) ," job burnout : an exploratory study of the maslak scale on employees in riyadh, saudi arabia", journal of king saud university, p .13 administrative sciences (1). 10. al-rashdan , malik (1995) , " psychological burnout among faculty members at jordanian state universities and their relationship to some variables " , unpublished master's thesis, yarmouk university, irbid, jordan. 11. al-turairi , abdul rahman (1994) , " psychological pressure, its concept, diagnosis, methods of treatment and resistance " golden pages printing company, riyadh. 12. al-zahrani, nawal (2008) "psychological burnout and its relationship to some personality traits in women workers with special needs", unpublished master's thesis , umm al-qura university, saudi arabia. 13. al-zeyoudi , mohammed (2007) , "sources of psychological stress and psychological burnout among special education teachers in karak governorate and their relationship to some variables" journal of damascus university , vol. 23, issue d 2, pp. 189-219 14. ashour abdelkarim , (2010) , " the role of electronic management in the rationalization of the public service in the united states of america and algeria" , a note submitted to complete the requirements for obtaining a master's degree in political science and international relations, university of montour constantine, algeria. 15. badran, mona , (1997) , "psychological burnout among secondary school teachers and its relationship to some variables " field study, unpublished master thesis, institute of educational studies and research, cairo university . 16. bakker, a. & demerouti, e. (2007) , " the job demands-resources model : state of art. journal of managerial psychology " , human resource management, 2 (3),. 17. cords, c. dougherty, t., (1993) ," a review and an integration of research on job burnout ", academy of management review, 18(4),. 18. freudenberger, h. (1975) , " the staff burn-out syndrome in alternative institutions. psychotherapy: theory, research & practice ", 12, (1),. 19. ghazi fawazin deif halla al-adwan , (2018) , "electronic public administration and its impact on the legal system of public utilities" (comparative study in the jordanian and emirati legal system) , phd thesis , international islamic sciences university, graduate school, jordan . 20. gurbuz, h. tutar, h. & baspinar, n. (2007) , " burnout levels of executive lecturers: a comparative approach in three universities ", faculty of economics and administrative sciences, eskisehir osmangazi university, eskişehir, turkey. 21. hussein bin mohammed al hassan , (2009) , "electronic management between theory and practice", international conference for administrative development towards outstanding performance in the government sector", the second axis of modern trends and methods, from 01 to 04 november. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 203 www.americanjournal.org 22. leila benhalima , (2019) , " the impact of e-management on the performance and improvement of the public facility in algeria, the legal system of the electronic public facility", algeria,. 23. maslach , c. and pine , a. (1977) ," the burnout syndrome in the day care setting", child care quarterly, 6. 24. maslach, c. & jackson, s. (1981) , " the measurment of experienced burnout. journal of occupational behaviour ", 2. 25. mona attiya, hezm khalil , (2018) , " management between corruption and administrative reform in the era of e-marketing", the modern university office for publishing and distribution . 26. najm abboud najm , (2004) , "strategic electronic management, functions and problems", dar al-mars riyadh, saudi arabia. 27. najm abboud najm , (2009) , " management and electronic knowledge", al-yazouri scientific publishing and distribution house, jordan . 28. perlman , b. and hartman , e., (1982), " burnout: summary and future research, human relations" , 35 ,. 29. saeed, bin mualla al-omari , (2004) , "administrative and security requirements for the application of electronic management survey study on the general organization of ports", letter . unpublished master's degree, naif arab academy for security sciences, riyadh . 30. safa fattouh juma , (2014) , " the responsibility of the public employee in the framework of the application of the electronic management system", 1st floor, house of thought and law for publishing and distribution, mansoura, egypt . 31. trivedi , t. & shukla, a. (2008) , " burnout in indian teachers. asia pacific education review " , humanitics, social sciences & law, 9 (3),. 32. yassin, saad ghalib , (2005) " electronic management and the prospects of its arab applications", institute of public administration,, saudi arabia. 33. yousef mohammed yousef abu ammona , (2009) , " the reality of electronic human resources management e-hrm in the regular palestinian universities-gaza strip, this research provided an update to the requirements", master's degree in business administration, islamic university, gaza. appendix (1) v. d. c. s. agree agree neutral don't agree s. disagree mean s.d n. % n. % n. % n. % n. % e m a n a g em en t computers hardware / accessories x1 14 35.9 22 56.4 2 5.1 1 2.6 0 0 4.26 0.677 x2 12 30.8 23 59 4 10.3 0 0 0 0 4.21 0.615 x3 10 25.6 26 66.7 3 7.7 0 0 0 0 4.18 0.556 x4 9 23.1 22 56.4 4 10.3 3 7.7 1 2.6 3.90 0.940 t. 28.85 59.63 2.575 0.65 4.14 0.697 88.48 3.225 networks x5 14 35.9 24 61.5 1 2.6 0 0 0 0 4.33 0.530 x6 8 20.5 23 59 8 20.5 0 0 0 0 4.00 0.649 x7 15 38.5 17 43.6 7 17.9 0 0 0 0 4.21 0.732 x8 13 33.3 18 46.2 8 20.5 0 0 0 0 4.13 0.732 t. 32.05 52.575 15.375 0 0 4.17 0.661 84.625 0 software / x9 16 41 17 43.6 4 10.3 2 5.1 4.21 0.833 x10 16 41 17 43.6 2 5.1 3 7.7 1 2.6 4.13 1.005 x11 18 46.2 16 41 3 7.7 2 5.1 4.28 0.826 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 204 www.americanjournal.org databases x12 14 35.9 19 48.7 5 12.8 1 2.6 4.18 0.756 t. 41.025 44.225 8.975 5.125 0.65 4.20 0.855 85.25 5.775 human cadres x13 9 23.1 20 51.3 7 17.9 3 7.7 0 0 3.90 0.852 x14 10 25.6 21 53.8 7 17.9 1 2.6 0 0 4.03 0.743 x15 8 20.5 20 51.3 5 12.8 4 10.3 2 5.1 3.72 1.075 x16 8 20.5 14 35.9 9 23.1 7 17.9 1 2.6 3.54 1.097 t. 22.425 48.075 17.925 0.625 1.925 3.80 0.942 70.5 11.55 b u rn o u t psycholo gical stress y1 13 33.3 16 41 9 23.1 1 2.6 0 0 4.05 0.826 y2 13 33.3 20 51.3 3 7.7 3 7.7 0 0 4.10 0.852 y3 12 30.8 21 53.8 4 10.3 2 5.1 0 0 4.10 0.788 y4 10 25.6 15 38.5 7 17.9 4 10.3 3 7.7 3.64 1.203 y5 12 30.8 15 38.5 6 15.4 2 5.1 4 10.3 3.74 1.251 t. 30.76 44.62 14.88 6.16 3.6 3.93 0.984 70.5 9.76 personal accompl ishment y6 14 35.9 16 41 5 12.8 2 5.1 2 5.1 3.97 1.088 y7 12 30.8 20 51.3 4 10.3 2 5.1 1 2.6 4.03 0.932 y8 13 33.3 19 48.7 4 10.3 3 7.7 0 0 4.08 0.870 y9 10 25.6 23 59 5 12.8 1 2.6 0 0 4.08 0.703 y10 7 17.9 15 38.5 13 33.3 3 7.7 1 2.6 3.62 0.963 t. 28.7 47.7 15.9 5.64 2.06 3.96 0.911 76.4 7.7 inhumanity y11 14 35.9 16 41 4 10.3 4 10.3 1 2.6 3.97 1.063 y12 16 41 17 43.6 4 10.3 2 5.1 0 0 4.21 0.833 y13 11 28.2 16 41 3 7.7 6 15.4 3 7.7 3.67 1.264 y14 21 53.8 14 35.9 2 5.1 1 2.6 1 2.6 4.36 0.903 t. 39.725 40.375 8.35 8.35 3.225 4.05 1.016 80.1 9.76 v=variable d = dimensions c=coding s. agree = strongly agree s. disagree = strongly disagree s.d = standard deviation american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 78 | p a g e economic empowerment: restructuring agricultural industrial management gulsanam boykuzieva doctoral student, department of management, fergana polytechnic institute, fergana, uzbekistan e-mail: ulsanam_77@icloud.com a b s t r a c t k e y w o r d s this study explores the transformative potential of economic strategies and organizational restructuring within agricultural industrial management. it investigates the evolving landscape of agricultural enterprises, aiming to identify and implement mechanisms that enhance economic viability and operational efficiency. by scrutinizing various models and approaches, this research seeks to illuminate pathways for sustainable growth, empowering agricultural industries to navigate challenges, optimize resource utilization, and adapt to dynamic market demands. through an interdisciplinary analysis of economic frameworks and organizational methodologies, this study endeavors to offer actionable insights for redefining the management paradigms of agricultural enterprises, fostering resilience, and fostering growth in the sector. economic strategies, agricultural industrial management, organizational restructuring, sustainability, resource utilization, market adaptation, management paradigms, sustainable growth, resilience, interdisciplinary analysis. introduction amidst the complex tapestry of global economies, the agricultural sector remains a linchpin, contributing substantially to livelihoods and food security worldwide. however, the landscape of agricultural industrial enterprises is evolving rapidly, confronted by multifaceted challenges that demand strategic innovation and adaptive management approaches. this study embarks on an odyssey to decipher the intricate relationship between economic empowerment strategies and the restructuring imperative within agricultural management frameworks [1-4]. contextualizing the need for transformation agricultural enterprises navigate a maze of challenges ranging from market volatility and resource scarcity to the pressing urgency for sustainable practices. these factors have propelled the imperative for a recalibration of traditional management norms towards more resilient and adaptable systems. harnessing economic empowerment as a fulcrum for change, this research aims to unearth methodologies that empower agricultural entities to not only survive but thrive in a dynamically shifting environment [3-5]. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 79 www.americanjournal.org aim and scope of the study at its core, this study seeks to delineate the synergistic potential between economic strategies and organizational restructuring within the realm of agricultural industrial management. by examining a spectrum of economic models, organizational paradigms, and case studies, it endeavors to unravel the untapped opportunities and potential pitfalls inherent in restructuring agricultural enterprises. through a nuanced analysis, this research aims to offer actionable insights and pragmatic solutions that can fortify the fabric of agricultural management [6-9]. structural framework the subsequent chapters of this study will unfold through a meticulously curated exploration of economic empowerment strategies. it will encompass diverse lenses, from financial frameworks to adaptive managerial approaches, shedding light on their impact on agricultural industrial management. moreover, this research will draw upon empirical evidence, comparative analyses, and industry best practices to substantiate the findings and recommendations presented, culminating in a comprehensive guide for stakeholders invested in reshaping agricultural industrial dynamics [10-14]. uzbekistan's agricultural sector was undergoing significant reforms aimed at modernization, increased efficiency, and sustainability. the country has been striving to overcome challenges like outdated farming practices, water scarcity, and land fragmentation. the situation in uzbekistan's agricultural sector: 1. economic reforms: uzbekistan embarked on economic reforms to liberalize its economy, including the agricultural sector. these reforms aimed to create a more favorable environment for private investment, encourage entrepreneurship, and reduce state control over agricultural activities. the transition from collective farming to more privatized models has been a significant focus. 2. land reforms: the government's initiatives to consolidate fragmented land plots into larger farms aimed to increase efficiency and promote modern agricultural practices. however, challenges in implementing these reforms and ensuring equitable land distribution have been encountered, impacting the pace and success of these efforts. 3. water management and sustainability: uzbekistan faces critical water scarcity issues, exacerbated by inefficient irrigation practices. efforts to adopt water-saving technologies, modernize irrigation systems, and promote more sustainable water management practices have been ongoing but require further investment and systemic changes. 4. crop diversification: the historical focus on cotton monoculture has been gradually shifting towards diversification. initiatives to encourage the cultivation of food crops, vegetables, and fruits for both domestic consumption and export have been introduced, aiming to reduce reliance on a single crop and enhance food security. 5. technological integration: the adoption of modern technologies, such as precision agriculture, has been encouraged to optimize yields and resource utilization. however, accessibility and affordability of these technologies for smallholder farmers remain areas that need attention. 6. market and trade reforms: improvements in market access, reduction of bureaucratic hurdles, and measures to create a more competitive market environment have been underway. efforts to link farmers directly to markets and improve value chain integration are ongoing. despite these efforts, challenges persist, including: american journal of business management, economics and banking volume 19 december, 2023 p a g e | 80 www.americanjournal.org • capacity building: enhancing the skills and knowledge of farmers to adapt to new practices and technologies. • infrastructure development: continuing investments in rural infrastructure for better connectivity, storage facilities, and transportation networks. • environmental sustainability: balancing increased productivity with sustainable agricultural practices to mitigate environmental degradation. • support mechanisms: strengthening support mechanisms for smallholder farmers, including access to credit, insurance, and extension services. understanding these ongoing reforms, challenges, and their impact on agricultural industrial management provides a comprehensive picture for research aimed at restructuring and empowering the sector within uzbekistan. gathering current data, conducting field studies, and engaging with stakeholders would provide deeper insights into the present landscape and the opportunities for further development [15-19]. proposals for the development of agricultural production enterprises in uzbekistan: 1. technology integration and training: • promote the wider adoption of modern agricultural technologies, such as precision farming and efficient irrigation systems, among enterprises. offer training programs and incentives to familiarize farmers with these advancements. 2. diversification incentives: • provide incentives for diversifying crops beyond cotton, encouraging the cultivation of a wider range of crops. offer support for market access, storage facilities, and transportation for these diversified products. 3. sustainable practices: • emphasize sustainable agricultural practices to mitigate environmental impact. promote agroecological approaches, crop rotation, and soil conservation techniques for long-term soil health and environmental sustainability. 4. access to finance and resources: • ensure better access to credit and financial services for agricultural enterprises, especially smaller ones. establish programs that provide affordable loans and grants for technology adoption and infrastructure development. 5. market access and value chain integration: • facilitate direct links between agricultural producers and markets, reducing intermediaries and improving profits. strengthen value chains by enhancing logistics, storage facilities, and transportation networks. 6. extension services and knowledge sharing: • strengthen extension services to disseminate best practices, modern techniques, and market information. create platforms for knowledge sharing among farmers, encouraging collaboration and learning from successful models. 7. investment in infrastructure: • continue investing in rural infrastructure, including roads, storage facilities, and irrigation systems. improved infrastructure enhances connectivity, reduces post-harvest losses, and facilitates market access. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 81 www.americanjournal.org 8. support for smallholders: • design targeted support programs for smallholder farmers, including access to resources, training, and technology. empowering small-scale farmers can contribute significantly to overall agricultural development. 9. policy reforms and governance: • continuously review and update policies to create a conducive environment for agricultural enterprises. ensure transparent governance, reduce bureaucratic hurdles, and create a stable regulatory framework. 10. research and innovation: • invest in agricultural research and innovation to develop locally adapted solutions. encourage collaboration between research institutions and agricultural enterprises for technology development and adaptation. implementing these suggestions would require a coordinated effort from government bodies, agricultural associations, financial institutions, and other stakeholders. a holistic approach addressing technology, sustainability, market access, and support systems can significantly enhance the development and competitiveness of agricultural production enterprises in uzbekistan [17-20]. conclusions in conclusion, the agricultural production enterprises in uzbekistan stand at a critical juncture, poised for transformative growth and sustainability. addressing the multifaceted challenges while leveraging abundant opportunities can propel these enterprises towards enhanced productivity, economic viability, and resilience. the amalgamation of economic empowerment strategies and organizational restructuring emerges as the cornerstone for catalyzing this evolution. initiatives aimed at modernization, diversification, and sustainability form the bedrock of a progressive agricultural landscape. however, these endeavors necessitate a concerted effort and a nuanced approach: • technology adoption and training: encouraging the uptake of modern technologies through training programs and incentives is pivotal for operational efficiency and improved yields. • diversification and sustainable practices: incentivizing crop diversification while promoting sustainable agricultural practices ensures long-term environmental health and mitigates reliance on singular crops. • access to resources and market integration: facilitating better access to finance, markets, and improved infrastructure strengthens the market presence and profitability of agricultural enterprises. • support systems and policy reforms: strengthening support systems, especially for smallholder farmers, and enacting policies that foster a conducive environment for growth are imperative. the pursuit of these developmental pathways requires collaborative efforts, ranging from governmental initiatives to private sector involvement and active participation of agricultural stakeholders. by aligning these strategies with the unique context of uzbekistan's agricultural sector, a resilient, adaptable, and prosperous future for agricultural production enterprises can be envisioned. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 82 www.americanjournal.org in essence, the transformation of uzbekistan's agricultural production enterprises hinges on strategic alignment, innovative thinking, and a steadfast commitment to sustainable growth, ultimately steering the sector towards prosperity and global competitiveness. references 1. ryser, l., & halseth, g. (2010). rural economic development: a review of the literature from industrialized economies. geography compass, 4(6), 510-531. 2. adxamovna, b. g. (2021). the procedure for assessing the quality of internal mechanisms of corporate governance in the joint-stock company “uzbek telecom”. south asian journal of marketing & management research, 11(6), 28-32. 3. husanboev, s. (2023). exploring agrotourism models: integrating socio-economic diversity in rural development. european journal of economics, finance and business development, 1(8), 39-47. 4. бойқузиева, г. а. (2021). пути улучшения внутренних механизмов корпоративного управления в акционерном обществе. oriental renaissance: innovative, educational, natural and social sciences, 1(10), 20-33. 5. husanboev, s. (2023). agrotourism: nurturing tradition, preserving heritage, and fostering local development. international journal of advance scientific research, 3(11), 289-295. 6. baykuzieva, g. a. (2020). проблемы развития плодоовощной отрасли в ферганской области и пути их решения. theoretical & applied science, (10), 78-82. 7. husanboev, s. (2023). theoretical foundations of formation and development of agrotourism activity. conferencea, 43-47. 8. adxamovna, b. g. (2022). characteristics and development trends of the world food market. world bulletin of management and law, 15, 86-90. 9. husanboev, s. (2023, november). transforming rural landscapes: agritourism as a catalyst for income generation and entrepreneurship. in e conference zone (pp. 34-40). 10. husanboev, s. (2023). conceptual frameworks for shaping and advancing agrotourism ventures. american journal of business management, economics and banking, 18, 140-145. 11. baykuzieva, g. a. (2020). problems of development of fruit and vegetable industry in fergana region and their solutions. international scientific journal theoretical & applied science, 10(90), 78-82. 12. qosimov, s. r. (2022). location relief and its significance in designing landscape architecture objects. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(10), 24-29. 13. бойқўзиева, г. (2023). озиқ овқат саноати корхоналарида бошқарув механизмларини такомиллаштиришнинг назарий жиҳатлари. инновационные исследования в современном мире: теория и практика, 2(14), 23-27. 14. adxamovna, b. g. (2022). theoretical foundations of using active marketing in the development of matkarimov, n. x. (2023). the processes of building panel residential buildings in the cities of uzbekistan (on the example of fergana). journal of architectural design, 19, 4-10. 15. adxamovna, b. g. (2022). improving the organizational and economic mechanism of management of food industry enterprises. conferencea, 71-75. 16. adxamovna, b. g. (2022). peculiarities of using active marketing in the development of food american journal of business management, economics and banking volume 19 december, 2023 p a g e | 83 www.americanjournal.org industry enterprises. 17. бойкузиева, г. а. (2022). теоретические основы использования активного маркетинга в развитии пищевых предприятий. conferencea, 71-76. 18. kurbonalievna, ig, & adxamovna, bg south asian journal of marketing &management research (sajmmr). 19. husanboev, s. (2023). influence of key factors on contemporary agrotourism efficiency: a comprehensive analysis. conferencea, 31-35. 20. odiljonovich, t. q. (2021). about automation of loading and unloading of cotton raw materials at cotton factory stations. academicia: an international multidisciplinary research journal, 11(10), 2068-2071. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 181 www.americanjournal.org distinctive feature of sports management and its role of sport area abbasov baxadir asatillayevich, senior lecturer tashkent institute of finance a b s t r a c t k e y w o r d s sports management is one of the types of industry-specific management that deals with the management of sports organizations. in connection with this approach, organization is a key concept of sports management. from the point of view of management, physical culture and sport are not only "appropriate human motor activity", not only a set of special tools and methods for the directed development of physical capacity of people, as stated in the theory of physical culture. sport, management, sport theory, sport organization, competition, social management, sport culture. introduction in state practice and management theory, objective factors of social development are the basis for building social management systems. the fact is that objective economic and socio-cultural processes taking place in any country are institutionalized at a certain stage of their development, i.e. they are consolidated in the form of formal, legally formalized organizations. they are grouped into industries of production and the social sphere. this is an objective basis for the development, along with the general theory of management, of special theories that reflect the specific patterns of functioning of the relevant industries in specific historical conditions. physical culture and sports as an object of social management is not only legitimate, but also necessary to be considered as a certain set of physical culture and sports organizations sports schools, sports clubs, sports teams in sports (football, hockey, basketball, volleyball, etc.), stadiums, sports and recreation centers, sports federations, etc. the product of their work is physical culture and sports services, that is, organized forms of physical exercise and sports, sports training programs and physical fitness classes, sports spectacles, etc. thus, organization is the key concept of sports management. general and special management has another characteristic feature. management is associated with the presence of professional managers in the organization, who are called managers abroad. a sports manager is a specialist who, as a rule, holds a senior position in a sports organization and knows the art of scientific management. the art of management is characterized by the peculiarities of the ability of a sports manager to apply generally accepted principles, methods and management technology in his specific management activities. let's summarize some results. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 182 www.americanjournal.org thus, sports management is a special theory and practice of managing physical education and sports organizations in market conditions, it is one of the sectoral types of management, one of the sectoral spheres of managerial activity in market conditions. the object of sports management as an independent science is a set of physical culture and sports organizations of the country, the product of which are physical culture and sports services. in the theory of target management, goals are those key results that an organization strives for in its activities over a long period of time. more precisely, the goal of management is the desired, necessary and possible state of the managed system in the future. the goals of a sports organization are usually fixed in three documents the charter of the organization, the concept and the target program for the development of physical culture and sports (for sports federations the corresponding sport) in the territory included in the service area of this organization (district, city, etc.). along with the general goal, the sports organization formulates private goals, which in the constituent documents are more often referred to as the tasks of the organization. in foreign scientific literature, the general purpose of a sports organization is often indicated by such concepts as "politics", "philosophy", "mission". a physical education and sports organization, as a rule, has not one, but several goals. one of them, for example, may be associated with mass physical culture and recreation work, and the other with high-performance sports. the ultimate goal of the management of a physical culture and sports commercial organization is to ensure the profitability or profitability of its work through rational labor organization. however, for the most part, physical education and sports organizations are non-profit organizations. in this case, the goal of their management is a constant desire to satisfy the needs and sporting interests of various categories of the population in physical education and sports services. in order to manage the governing bodies of physical culture, sports and tourism, the social policy of the state is being implemented. a number of requirements are imposed on the formulation of management goals, the main of which are: concreteness (formed result); predictability (short-term, long-term); reality (achievability); interconnectedness, consistency and efficiency. functions in sports management are relatively independent, specialized types of management activities that stand apart in the process of division of labor, which express the directions or stages of the purposeful impact of the subject of management on the managed object. functions occupy one of the central places in the theory and practice of sports management, as they reveal its essence and the content of industry management activities. there are general and specific or sectoral management functions. general management functions. the emergence of sports management functions is an objective process. the management of physical culture and sports can be considered as a process of consistently alternating, logically following each other actions that are repetitive, cyclical in nature. such actions of the subject of management, corresponding to the successive stages of the management cycle, are called general management functions. in a market economy and an active competition, it is very important to rationally allocate resources — both material and human, competently organize the company's work, and effectively interact with partners and the target audience. this applies not only to industrial production, trading companies or private entrepreneurs. competent managers are also needed in the sports industry. sports american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 183 www.americanjournal.org management is of particular importance today. its main tasks are to ensure the commercial success of sports projects (organizations, competitions, etc. to build long—term relationships with sponsors, develop brands of sports clubs and teams and conclude profitable contracts, including advertising ones. sports management includes several areas: strategic and tactical planning (this includes planning the activities of a specific sports organization, resources and finances); organization (at the level of structure, distribution of functions, management of internal processes and external interactions); control (supervision of work, analysis of results, assessment of the quality of tasks and making necessary adjustments); marketing (work on the image of the organization, pr, etc.); financial management (planning, accounting, control, etc.); work with staff (starting with the search for employees and ending with conflict resolution). management information refers to information used by the management of a physical culture and sports organization in order to achieve certain strategic milestones, goals of both the entire organization and its individual functional units. the complex of requirements for management information, with which the heads of physical culture and sports organizations of various levels work, includes a high degree of reliability and reliability of information, timeliness of its receipt and convenience of forms, minimality of volumes with the necessary completeness, etc. the reliability of management information is determined by the degree to which its content corresponds to the objective state of facts and processes taking place both in the organization itself and in the external environment. the timeliness of the receipt of information consists in ensuring that during its transmission and processing the state of the object to which it relates has not changed. the completeness of information is characterized by its volume, which should be necessary and sufficient for making a management decision. the lack of information reduces the validity of decisions made or leads to the adoption of incorrect, erroneous ones. an excess of information increases its volume, which leads to excessive labor and time spent on processing information. the organization receives various types of information from its external environment. its acquisition and analysis allow the management of the organization to form an adequate understanding of such elements of the environment as target markets, competitors, consumers, macroeconomic factors, etc. this diverse information coming from the outside can be divided into information about customers, market conditions, competitors, methodological, biomedical, legal, etc. the listed types of external information are reflected in special documents on paper and electronic media, books, newspapers, specialized publications, conversations with customers, suppliers, intermediaries and other persons who are not related to the full-time employees of this sports organization. external information can also be obtained during formal and informal communication with senior and ordinary employees of other physical education organizations. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 184 www.americanjournal.org references: 1. abbasov b. a., mavlyanov f. a. issues of improvement of the form of physical education in health promotion //theoretical & applied science. – 2019. – №. 10. – с. 659-661. 2. abbasov b. a., mavlyanov f. a. specific features of vocational and practical physical training of students //приоритетные направления научных исследований. – 2019. – с. 3-4. 3. abbasov b. a. consideration of health indicators in physical education. – 2023. 4.xudayberdieva d.a., shodmonov x. n. methods of teaching economic disciplines in modern conditions of the modification //theoretical & applied science. – 2020. – №. 1. – с. 792-795. 5. abidovna k.d., asatillaevich a. b. stages of technical training of athletes //euro-asia conferences. – 2021. – т. 1. – №. 1. – с. 94-96. 6. махаммадиев а. т., худайбердиева д. а. пути эффективного использования маркетинговых стратегий в повышении удовлетворенности потребителей физкультурноспортивных услуг в малом бизнесе и предпринимательстве: социально-правовой аспект //актуальные проблемы правового регулирования спортивных отношений. – 2021. – с. 200206. 7. xudoyberdiyeva d.a., ibragimov g. a. prospects of service in uzbekistan //экономика и социум. – 2019. – №. 12. – с. 147-150. 8. jamalovna j.d. et al. ways to effectively use marketing strategies to increase the customer satisfaction of physical education and sports services //international journal of psychosocial rehabilitation. – 2020. – т. 24. – №. 5. – с. 2930-2938. 9. abidovna k. d., asatillaevich a. b. sport management: sport management //journalnx. – с. 342-345. 10. махаммадиев а. т. образование-источник новых идей, творческого мышления и нововведений //профессиональное самоопределение молодежи инновационного региона: проблемы и перспективы. – 2018. – с. 156-157. 11. abbasov b. a., mavlyanov f. a. specific features of vocational and practical physical training of students //приоритетные направления научных исследований. – 2019. – с. 3-4. 12. vocational s. f. o. f. udk 37.02 abbasov ba, senior lecturer mavlyanov fa, teacher tashkent institute of finance uzbekistan, tashkent. – 2019. 13. asatillaevich a. b. et al. the impact of service sector on welfare //journal of critical reviews. – 2020. – т. 7. – №. 5. – с. 330-333. 14. abbasov b. a. consideration of health indicators in physical education. – 2023. 15. asatillayevich a. b. approaches to the development of physical culture //asian journal of multidimensional research. – 2022. – т. 11. – №. 3. – с. 76-80. 16. asatillaevich a. b. complex aspects of the organization educational process in the context of the pandemic coronavirus. – 2022. 17. jamalovna j. d. et al. the importance of marketing strategies in the provision of physical education and sports services //south asian journal of marketing & management research. – 2020. – т. 10. – №. 4. – с. 111-119. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 185 www.americanjournal.org 18. jamalovna j. d. et al. the importance of marketing strategies in the provision of physical education and sports services //south asian journal of marketing & management research. – 2020. – т. 10. – №. 4. – с. 111-119. 19. mavlyanov f. a. specific features of vocational and practical physical training of students //экономика и социум. – 2019. – №. 12 (67). – с. 84-86. 20. abidovna x. d., abduqodir o’g’li x. j. ta’lim turlari va ularning amalga oshirilish mexanizmlari //" germany" modern scientific research: achievements, innovations and development prospects. – 2023. – т. 9. – №. 1. 21. abidovna x. d., abduqodir o’g’li x. j. ta’lim xizmatlarini takomillashtirishda rivojlangan mamlakatlar tajribasi //" russian" инновационные подходы в современной науке. – 2023. – т. 9. – №. 1. 22. abidovna x. d. et al. davlat va xususiy ixtisoslashgan maktablari va ularda ta’lim jarayonini boshqarish //proceedings of international conference on modern science and scientific studies. – 2023. – т. 2. – №. 4. – с. 105-110. 23. asatillayevich a. b. approaches to the development of physical culture //asian journal of multidimensional research. – 2022. – т. 11. – №. 3. – с. 76-80. 24. asatillaevich a. b. complex aspects of the organization educational process in the context of the pandemic coronavirus. – 2022. american journal of business management, economics and banking issn (e): 2832-8078 volume 13, | june, 2023 p a g e | 115 www.americanjournal.org investment and its direction amirov t.m. 1 1 trainee assistant, department of economic theory, samarkand institute of economics and service, uzbekistan phone: +99893 725 52 68 a b s t r a c t k e y w o r d s economy fields and networks in development tourism of the field place incomparable and present in the day all countries tourism to the development of the country tourists flow more trying to redirect one in the circumstances to the field attraction being carried out investments country economy for extremely important known to be is happening tourism to the field investments active attraction make , their efficient to be directed provision of the country tourism potential increase in our country tourism of the field touristic attractiveness to investors nice to do current from issues one is counted. introduction: the word " investment ". latin derived from language (lat. investio – to wrap). into " fund mobile do”, “capital input said meanings means _ investment in the future benefit get in order to any field or to the network long for a period of time investment is understood. investment present in the day countries economy development main factor being left let's say not mistaken we will be developing and transition in the economy countries for investments very necessary is counted. the first impressions of the investment home the first appearances of the farm appear has been in periods manifestation was _ his initial appearance dangerous has been long term and long to distances go exchange later on trade to do for separated. later on the sea through trade works done from being increased after kings and rich people by to sailors new products and new to find lands investments sewn _ however such money bet not called an investment. literature review investment content essence about many to look and tariffs , scientists thoughts available _ our country scientists by many _ views and tariffs telling passed . a. vahabov, sh. khajibakiyev, n. muminov, d. gozibekov, g. makhmudovalar by of investments economic content and essence on the surface research take went , a. vahabov , sh. khajibakiyev , n. muminovlar by of investments content essence according to as follows tariff given : "« investments profit get and positive social to the effect reach in order to entrepreneurship objects and another activity types to be placed money american journal of business management, economics and banking volume 13 june, 2023 p a g e | 116 www.americanjournal.org funds of banks purposeful deposits , shares , other valuable papers , technologies , machines , equipment , licenses , loans , any other property _ or proprietary rights , intellectual riches ".1 research methodology in research information collection, analysis to do and methods used. data analysis and synthesis do, scientific abstraction, economic and mathematician modeling methods used without theoretical descriptions work developed. analysis and results investments placed investment to the object according to , investing to the period according to , investment being done property to the shape according to and territorial to the sign according to one how much to the group separated. such to groups from separation the goal investment about enough and necessary information to get chance is to give them below counting let's go: investment directed to the object according to: real investments financial investments investment to the period according to long term short term ownership to the shape according to: private investments foreign investments state investments a mix investments territorial to the sign according to: external investments internal investments we listed above past all investments one on purpose benefit get for directed will be conclusions and offers: investments usually the investment for the investor as well attraction doing towards also useful for is counted. this is the reason own from himself known by the investor empty standing funds work release or financial to investment attraction reach through benefit get if second from the side investment attraction doing from the side any one the field development progressive carry on and work release expand and deversification to do for is spent. work known in the output to the point when it arrives him expand or how many the product types to add right will come so situations enterprise and organizations the first in turn own from funds , not distributed from profit and fund funds use possible _ we are above counting past factors work release to expand internal factors is counted . work release expand and development external bank loans to factors, other enterprise and from the states debts and investments enters _ 1 vahabov av, khajibakiyev sh. kh., muminov ng, khorizhiy investments . study manual . t.: " finance ". american journal of business management, economics and banking volume 13 june, 2023 p a g e | 117 www.americanjournal.org any one work release of the enterprise investment through developed development to find country in the church of enterprises in this field development and do it from behind whole one of the sector development means. investment currents usually developed from countries evolving ( transition economy ) to countries and developing of times economic backward to periods directed will be this is as follows explain possible will be so developed countries christianity quite a bit developed and them competition environment free and strength therefore of the enterprise income immutable being enterprise income finite to the cost equal to will be (mr=mc). such in case enterprise more income get in order to the price a little increases of the enterprise buyers competitor of the enterprise from products buy take starts _ enterprise all from consumers separated stay can _ the price shooting is not effective enough count the product cost finite to the cost equality therefore enterprise that's the way can't hold these in consideration take developing countries in the economy relatively not so much not developed competition in the environment activity walking income get there is a lot of opportunity tall _ that's why investment developed of times developing to the states oriented will be such to investments developing in the state organize being carried out abroad enterprises , alliance enterprises , joint enterprises and work release size and the product type expanded enterprises example be takes _ investments developing from the states backward to countries to move backward in countries natural resources diversity and stock, cheap worker power example be takes _ backward countries the most a lot raw material export doer countries is counted. this is the reason their capital resources (machine technique technology with less lack of insurance and worker power in the market competent abilities of weight very lack of that's why such countries raw items export to do through economy moderate holding tries to stand up. that's why for the same to the states investment by entering cheap worker power and raw from the material using work release to the road to put possible and this the most good income to get one is counted. current in the day developed from countries backward to countries investment input and in the country work release organize to do demand is high increased is going of this situation two side available in our eyes. firstly developing country entering of investment weight high that's it because of backward country of the economy to growth take will come second from the side such backward to the country being introduced investment that's it of the country developed to the country dependence cause releases _ that's why backward and transition in the church countries developed from countries investments attraction while doing possibility until less acceptance to do attention looks _ such dependency especially long term in investments to the eye obvious thrown away summary in place to say it's okay investments christianity in development main from the factors one is counted. that's why all countries abroad investments own economies more attraction tries to do. with that together being introduced of investments quantity from behind increased if he leaves such condition investment attraction doing state economy for dangerous considered economic dependence cause release possible will be. used literature: 1. vahabov av, khajibakiyev sh. kh., muminov ng, khorizhiy investments. study manual. t.: " finance ". 2. jorayeva as and others _ investment projects analysis: high study countries for study manual t.: " east ", 2003. 3. vakhobov av, khajibakiyev sh. x. and others _ foreign investments. study manual. t.: finance 2010. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 148 www.americanjournal.org the study on capital structure funding strategy against the development of financial performance of public listed companies in china dr yeoh wee win1 1 mcmi, b. comm (acc), mba (fin), d.man, dba (fin), phd european international university (eiu) a b s t r a c t k e y w o r d s the purpose of the current study had been aimed to provide the insight on the relevance impact for the capital structure funding strategy of the business in affecting the development of the financial performance of the public listed companies in china mainly focusing on the companies listed in shanghai stock exchange (sse) and shenzhen stock exchange (szse). the previous studies had revealed the potential expectations of the outcome in the quantitative study to observe ethe positive correlation and relationship from the capital structure financing against the financial performance of the business. through the quantitative study method, the research framework had been translating into the statistical testing output which observe the data input of debt equity ratio as the representation of the capital structure as independent variables while the financial performance as the dependent variable for the study had been represented by the profitability ratios including the gross profit margin, net profit margin, return one equity and return on asset. the results for the research had identified only the return on equity is being impacted from the designation of the capital structure funding but not applicable for other variables. the outcome of the study had concluded major disagreement from the initial literature review which create a fresh insight inducing the potential future study to further explore the relevance focus on the scope of study into different environment and target population of the study using the similar research framework for the purpose of future research. capital structure, financial performance, profitability ratio, china, public listed companies introduction capital structure strategy refers to the mix of different sources of funding that a company uses to operate and grow its business. it involves determining the right balance between debt and equity to finance operations, investments, and expansions. the importance of the capital structure had been crucial for the organization in raising the necessary funding to drive the business growth and sustainability (adesina, nwidobie & adesina, 2015). based on the designation of the capital structure strategy, the capital structure had been contributed by the funding from debt and equity which will provide the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 149 www.americanjournal.org balance in the injection of the source of funding (ajibola, wisdom & qudus , 2018). the contribution of the ratio and proportion of the debt and equity had been importance to draw the cost of capital which will become the finance cost translating into the required rate of return for the organization. the fundamental in addressing the capital structure strategy had manly provide the relevance focus into the achievement of the achievement in the cost of capital optimization where the composition of the debt and equity financing for a business organization will be crucial to address the cost of financing of the business (chadha & sharma, 2015). this will become the benchmark for the required rate of return that will become the guideline to accept projects to achieve higher return to cover the cost of financing within the business investment (ngoc, tien & thu, 2021). the preference for the debt financing could be more beneficial for the weighted average cost of capital (wacc) but results in higher risk towards financial distress while the equity financing will provide higher financial stability but will observe higher cost of financing contributing to higher wacc for the organization (naseem et al., 2017). moving on, the emphasize on the importance for the capital structure had been very crucial to address the risk management for an organization. the simple observation of the risk of business can be identified through the ratio of the debt and equity financing where the higher debt proportion will indicate the higher financial risk for the business (ngoc, tien & thu, 2021). this is because that the inability for the business to cover the debt incurred will be importance where the failure for the repayment for the debt will potentially results in bankruptcy for the business (oyedokun, 2018). in addition, the higher debt ratio will put into higher gearing ratio for the organization that will create lack of confidence towards the business resulting in the risk of having lack of access in obtaining new financing or higher cost of financing due to the higher risk in the business organization (ramli, latan & solovida, 2019). in addition, the capital structure strategy will create the visibility on the flexibility and agility for the business organization to manage the financial resources. this is extremely crucial for the business as the engagement in the equity and debt financing will need to be depending in the needs of the business (naseem et al., 2017). for instance, the sudden need of cashflow to support new projects may result in the shift towards the incremental in the debt over the equity proportion as the funding could be only utilized for a certain period of time but not resulting in the long-term where using the equity funding may result in higher commitment of the cost of financing for the business where the underutilization of the equity financing in the long-term could translate into additional burden for the business organization and lowering the profitability of the business (kumar, colombage & rao, 2017). problem statement the problem statement for the current study had been addressed with the relevance scope to understand the impact of the capital structure for business organization in affecting the profitability of the business (naseem et al., 2017). in other words, the financial performance for the business could be highly affected based on the capital structure funding of the business where the financing through different ratio of debt and equity could be posing different outcomes in the profit and loss statement which will affect the growth and learning for the business (hang et al., 2018). however, this myth had been very doubtful as there is no strong evidence to post the current study to be proven by the study resulting in the need for the current study to address the topic of interest. this had then led to the designation of the objective of the research which is directing the investigation to identify the potential significant in the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 150 www.americanjournal.org relationship between the capital structure funding against the profitability ratios of the business organizations. literature review gross margin reflected the company's ability to achieve a higher profit margin based on comparing the ratio between sales and cost of goods sold (vtavu, 2015). this was crucial for the company to understand the ability to increase the company's profits based solely on the sale of goods without considering the other expenses and cost impacts in the company (vtavu, 2015). capital structure has rarely been linked to the contribution to gross margin development, but some studies suggest that increasing debt financing will improve leverage for the company to increase sales performance (adesina, nwidobie & adesina, 2015). this is because debt financing offers a higher potential for raising loan funds that can be invested and converted into business opportunities in a shorter period of time. in addition, net profit becomes part of measuring the company's net profit margin, where the company tends to focus on the remaining returns from investors that contribute to the company's value (nassar, 2016). sivalingam & kengatharan (2018) mentioned that the company has made various expenditures where the capital structure of debt and equity is believed to influence the expenditures of the company, where higher expenditures could be caused by the lack of control over the capital structure. contributing to this is the fact that stakeholders such as suppliers and vendors tend not to provide competitive offers to the company that has higher debt than equity, resulting in the company paying more than the average expenses of similar companies (ajibola, wisdom & qudus, 2018). the measurement of return on equity (roe) has been largely determined by the value of the equity contribution within the company's capital structure. based on a simple prediction, the higher equity should result in a higher return on the company's investment (ramli, latan, & solovida, 2019). however, there is some evidence in previous studies that the high equity leverage ratio may have a negative impact on roe financial performance, as the high equity capital may lead to over-funding of equity, resulting in failure to achieve a significant return on equity investment can (ngoc, tien & do, 2021). furthermore, oyedokun (2018) emphasized that debt financing appears to be a cheaper financing as large companies tend to provide high levels of debt to finance large-scale projects, which results in a higher return on equity based on the net profit earned by the company. moving forward, return on asset (roa) could refer to one of the basic financial performance metrics of a company that helps to understand the return based on the assets invested in the company (chadha & sharma, 2015). however, assets are derived from the capital structure of debt and equity, which determine the contribution of financing to the available assets (mauwa, namusonge & onyango, 2016). there is evidence that capital structure influences flexibility and leverage in determining asset investments for the firm, which impact the firm's financial performance (opoku-asante et al., 2022). based on the relevance concepts, the increase in both debt and equity is likely to influence the evolution of roa performance, with some studies assuming that the higher equity contribution due to the company's sustainability capital financing is likely to lead to higher roa in line with long-term goals of the company achieve (mauwa, namusonge & onyango, 2016). with this, the gap in the literature review had been identified where there is strong suggestion from the previous research papers within the similar scope of study pointing out the study towards the relationship between the capital structure against the movement of the profitability ratio which is american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 151 www.americanjournal.org interpreted equivalent with the financial performance of the business. despite the many research papers pointing out the relevance outcome for the research, there is still lacking into the venture towards the chinese companies which showed the lack of the exploration into the asian region. in addition, the study had not provide the insight in relevance towards the development of the capital structure measurement using the debt equity ratio to reflect as the representation on the companies in the recent trend especially with the high uncertainty of the economic condition. this will definitely becoming a plus point to address the motivation of the current study which is crucial to identify the new knowledge from the outcome of the study targeting to narrow down the identified gap in the literature review for the scope of study. hypothesis development hypothesis 1 h0: there is no significant impact from the debt equity ratio against the profitability ratio of gross profit margin in business. h1: there is significant impact from the debt equity ratio against the profitability ratio of gross profit margin in business. hypothesis 2 h0: there is no significant impact from the debt equity ratio against the profitability ratio of net profit margin in business. h1: there is significant impact from the debt equity ratio against the profitability ratio of net profit margin in business. hypothesis 3 h0: there is no significant impact from the debt equity ratio against the profitability ratio of return on equity in business. h1: there is significant impact from the debt equity ratio against the profitability ratio of return on equity in business. hypothesis 4 h0: there is no significant impact from the debt equity ratio against the profitability ratio of return on asset in business. h1: there is significant impact from the debt equity ratio against the profitability ratio of return on asset in business. research methodology the structure of the quantitative analysis study, which will use quantifiable and measurable data, served as the foundation for the research methodology for the current study (apuke, 2017). without introducing any subjectivity of the researcher's judgment, the quantitative study's main advantage was that it gave results and findings based on statistical data output greater objectivity (sharela, 2016). additionally, quantitative research analysis enables the analysis of larger samples of data, resulting in a greater representation of the study's target population (apuke, 2017). this acknowledges deductive reasoning as a research strategy that complements quantitative study, with deductive reasoning american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 152 www.americanjournal.org concentrating on using a logical approach from general concepts to precise conclusions and testing hypotheses (cooper & schindler, 2014). the secondary data market will be used to transfer the data that was previously used through the primary source and is still available in the secondary data market, which will be the focus of the data collection process (sekaran & bougie, 2016). the secondary data market offers greater convenience in the data collection process, giving the secondary data collection method greater leverage in terms of time and resources (apuke, 2017). the source of secondary data is the financial reports that are available in the annual reports of the chosen companies. the reasons supporting the selection from the public listed companies had increase the convenience in the data collection process where the financial information for public listed companies are highly accessible. according to sekaran and bougie (2016), the numerical data derived from the financial statements is ideal for quantitative study analysis using the statistical method. the study's target audience is related to its goal and area of concentration, which are related to the development of financial performance of businesses in china, a country with a highly competitive business strategy environment. this primarily targets businesses in the consumer goods sector that are listed on both the shenzhen stock exchange (szse) and the shanghai stock exchange (sse) (apuke, 2017). this favors the convenience sampling approach, which selects the company samples at the researcher's convenience without expending unnecessary effort on the data collection process. 20 companies would be an adequate sample size, according to the previous quantitative study, to generate a useful quantitative analysis for the study. in order to provide a useful quantitative analysis for the study, the data analysis for the quantitative study will concentrate on developing statistical analysis through descriptive analysis, factor analysis, reliability analysis, correlation analysis, and regression analysis (sekaran & bougie, 2016). this will become the benchmark to identify the fundamental analysis using the quantitative method study to test for the significant in the relationship between the independent variable and dependent variable as reference to the research framework for the research study. the use of the statistical software tool to produce the study's quantitative results is evidence for this (cooper & schindler, 2014). as a result, the hypothesis results are compared with the earlier findings of the literature review in order to arrive at the study's conclusion achieving the purpose and objective of the research (saunders, lewis, and thornhill 2015). results and findings the first step into the quantitative study had been verifying the reliability of the data set which include the collection of the secondary data from the annual report to compute the financial ratio including the gross profit margin, net profit margin, return on asset (roa) and return on equity (roe) as well as the debt equity ratio to represent the capital structure of the business. therefore, the reliability test will be conducted to serve as the benchmark to test on the credibility and consistency of the data input for the current study. table 1: reliability test output the debt ratio, gross profit margin, net profit margin, roa, and roe variables reliability analysis results are presented in table 1 for the data set. table 1's results showed that cronbach's alpha is 66.4%, number of variables reliability output 4 66.40% american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 153 www.americanjournal.org which is, as previously mentioned, slightly below the benchmark. the previous study did note, however, that the primary data collection associated with the questionnaire study typically uses the 70% benchmark. the acceptance rate for the reliability analysis is set to 50% as the minimum bar for the secondary data to the historical data. given this situation, it is acceptable to continue the quantitative analysis study because the reliability test for the current data remained above the minimum measurement value. table 2: correlation analysis test the correlation analysis between the dependent variables of gross margin, net margin, roe, and roa and the independent variable of leverage ratio is shown in table 2. according to the findings, the correlation between debt ratio and gross margin, net margin, and roa was observed; however, because the observed p-value was higher than the tolerance limit of 5%, none of the negative correlations had any discernible effects. the finding was different, though, for the relationship between debt ratio and return on equity, where there is a moderately positive correlation that becomes significant when the pvalue is below the tolerance threshold of 5%. this indicated that there is a negative correlation between the two variables as only roe was still relevant and significant in the change in movement with leverage ratio. table 3: regression model output regression analysis is a crucial part of any quantitative study because it is the primary analysis used to determine whether the relationship between the independent and dependent variables is, as the study's research framework suggests, meaningful. in order to draw conclusions about the outcome of the results and the results of the study, the regression analysis's outcome serves as a crucial benchmark for testing the hypothesis put forth in the literature review. the single regression model is additionally preferred in the quantitative approach where the single independent variables are used to test against each individual dependent variable as specified in the research framework. based on table 3's findings, it is clear that only the return on equity variable has a p-value test that is less than the tolerance level of 5%, indicating that there is strong evidence to support the conclusion that the capital structure's debt to equity ratio has a significant influence on how the return on equity for the business organization moves. however, the regression analysis's similar observation for the remaining dependent variables, such as gross profit margin, net profit margin, and return on asset, failed pearson correlation coefficient remarks gross profit margin -0.406 moderate negative correlation net profit margin -0.376 weak negative correlation return on equity 0.540 moderate positive correlation return on asset -0.215 weak negative correlation variable debt equity ratio dependent variable independent variable p-value test remarks gross profit margin 0.068 not significant net profit margin 0.093 not significant return on equity 0.012 significant return on asset 0.349 not significant debt equity ratio american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 154 www.americanjournal.org to find any evidence of a significant influence from the debt equity ratio of the capital structure funding of the company. discussion based on the outcome of the study, there is a major disagreement in the current results and findings against the previous suggestion arise from the literature review. the development of the hypothesis had supported the potential findings to indicate the presence of the significant impact from the capital structure of the debt equity ratio against the financial performance for the business. however, the current outcome of the study had only observed the significant evidence to point out for debt equity ratio against the return on equity but not for other profitability ratio as demonstrated through the quantitative study. as reference to the hypothesis development, only the hypothesis 3 is accepted for the current research which posed the evidence that there is still lacking research to support the solid indication for the positive impact of the capital structure against the financial performance of the study. in another perspective, there could be other factors that come into play affecting the current outcome of the study such as the chinese market as well as the period of study which can be further investigated through future research to explore the similar research framework through a different research population and environment. however, that will not provide any change towards the current disagreement from the outcome for the current study. therefore, the revisit into the relevance scope of study may provide significant insight for the academic for the topic of interest. contribution of study this study had been an eye opener where the current outcome of the study had been rather surprising showing the opposite of the suggestion from the hypothesis drawn from the initial literature review. this had created the new perspective into understanding the capital structure strategy from business in the designation to affect the profitability and financial performance of the business organizations. the outcome of the study definitely provide solid evidence for the research framework to identify the new findings that will close down the gap identified within the academic studies. besides, the outcome of the study had been creating the fresh perspective for the investors in judging the capital structure funding including the debt equity ratio and gearing ration as part of the major consideration when determining the potential earnings and return for the business. furthermore, the outcome in the current study contributes new knowledge to the management of the business organizations especially in china where the companies will be more seeking into the development for the capital funding stray to drive the business growth for the future. conclusion the outcome of the study had strongly concluded that the capital structure strategy for the business may not be likely to affect the financial performance of the business which had been evidenced from the quantitative study in the current research paper. the outcome may not be favourable or desired from the initial expectations of the study but still pose a significant finding to oppose the finding from the previous research papers. the outcome for the current study should be highly viewed as a n opportunity within the academic study to further explore in the similar observation and concept to understand the potential changing trend of the business strategy and capital structure funding for the business. the insight achieved from the current study is definitely valuable to provide fresh perspective to further american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 155 www.americanjournal.org explore the scope of study to understand the variability in the factors affecting the financial performance of the business creating the opportunity to extend the current scope of study in the future research. references 1. adesina, j. b., nwidobie, b. m., & adesina, o. o. (2015). capital structure and financial performance in nigeria. international journal of business and social research, 5(2), pp. 21-31. 2. ajibola, a., wisdom, o., & qudus, o. l. (2018). capital structure and financial performance of listed manufacturing firms in nigeria. journal of research in international business and management, 5(1), pp. 81-89. 3. alipour, m., mohammadi, m. f. s., & derakhshan, h. (2015). determinants of capital structure: an empirical study of firms in iran. international journal of law and management, 57(1), pp. 5383. 4. apuke, o.d. (2017). ‘quantitative research methods a synopsis approach’, arabian journal of business and management review (kuwait chapter), 6(10). 5. bandyopadhyay, a., & barua, n. m. (2016). factors determining capital structure and corporate performance in india: studying the business cycle effects. the quarterly review of economics and finance, 61, pp. 160-172. 6. chadha, s., & sharma, a. k. (2015). capital structure and firm performance: empirical evidence from india. vision, 19(4), pp. 295-302. 7. cooper, d. & schindler, p. (2014). business research methods, 12th edn, mcgraw-hill/irwin. boston. 8. graham, j. r., leary, m. t., & roberts, m. r. (2015). a century of capital structure: the leveraging of corporate america. journal of financial economics, 118(3), pp. 658-683. 9. hang, m., geyer-klingeberg, j., rathgeber, a. w., & stöckl, s. (2018). measurement matters—a meta-study of the determinants of corporate capital structure. the quarterly review of economics and finance, 68, pp. 211-225. 10. kieschnick, r., & moussawi, r. (2018). firm age, corporate governance, and capital structure choices. journal of corporate finance, 48, pp. 597-614. 11. kumar, s., colombage, s., & rao, p. (2017). research on capital structure determinants: a review and future directions. international journal of managerial finance, 13(2), pp. 106-132. 12. mauwa, j., namusonge, g. s., & onyango, s. (2016). effect of capital structure on financial performance of firms listed on the rwanda stock exchange. european journal of business, economics and accountancy, 4(4), pp. 1-11. 13. naseem, m. a., zhang, h., malik, f., & ramiz-ur-rehman. (2017). capital structure and corporate governance. the journal of developing areas, 51(1), pp. 33-47. 14. nassar, s. (2016). the impact of capital structure on financial performance of the firms: evidence from borsa istanbul. journal of business & financial affairs, 5(2). 15. ngoc, n. m., tien, n. h., & thu, t. h. (2021). the impact of capital structure on financial performance of logistic service providers listed on ho chi minh city stock exchange. palarch's journal of archaeology of egypt/egyptology, 18(2), pp. 688-719. 16. opoku-asante, k., winful, e. c., sharifzadeh, m., & neubert, m. (2022). the relationship between capital structure and financial performance of firms in ghana and nigeria. european journal of business and management research, 7(1), pp. 236-244. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 156 www.americanjournal.org 17. oyedokun, g. e. (2018). capital structure and firm financial performance. in capital structure and firm financial performance: oyedokun, ge. 18. ramli, n. a., latan, h., & solovida, g. t. (2019). determinants of capital structure and firm financial performance—a pls-sem approach: evidence from malaysia and indonesia. the quarterly review of economics and finance, 71, pp. 148-160. 19. saunders, m., lewis, p. & thornhill, a. (2015). ‘research methods for business students’, pearson education limited, 7th edn, pp. 246-298. 20. sekaran, u. & bougie, r. (2016). research methods for business: a skill-building approach, 7th edn, wiley, new york. 21. sharela, b.f. (2016). ‘qualitative and quantitative case study research method on social science: accounting perspective’, international journal of economics and management engineering, 10(12), pp. 3849-3854. 22. sivalingam, l., & kengatharan, l. (2018). capital structure and financial performance: a study on commercial banks in sri lanka. asian economic and financial review, 8(5), pp. 586-598. 23. vătavu, s. (2015). the impact of capital structure on financial performance in romanian listed companies. procedia economics and finance, 32, pp. 1314-1322. american journal of business management, economics and banking issn (e): 2832-8078 volume 10, | march, 2023 p a g e | 1 www.americanjournal.org the effect of adopting the strategy of industrial specialization and its role in reducing audit risks: a survey of the views of a sample of external auditors in iraq dr. zaid sherif haddab department of accounting, collage of administration and economics, university of thi qar, iraq zaid-sh@utq.edu.iq a b s t r a c t k e y w o r d s the research deals with the concept and importance of industrial specialization for auditors, as well as the concept of audit risks and its divisions. it also deals with the role of industrial specialization in reducing audit risks. it argues that industrial specialization plays a major role in controlling related risks. previous studies showed that a specialized auditor can detect fraud in financial reports due to his/her experience in the client's field of activity and as a result of his/ her continuous review of homogeneous activities. specialized auditors, when practicing their professional work within their field of specialization, have sufficient experience, and also the ability to detect fraud compared to auditors with little experience. however, when specialized auditors practices the audit process outside their field of specialization, the degree of their professional competence decreases, as does their ability to study and analyze the causes of fraud. the study also concludes that a specialized auditor can control the risks of the business of the entity under review by studying and analyzing the administrative aspects of the client, as well as integrity and competition in the industry and the financial trends of the entity. in addition to the above, if an auditor acts as a specialized auditor, he/she will have the ability to control the risks of his/her work. introduction the auditing profession is one of the service professions that aim to serve the community by providing its various individuals and organizations with the information they need to give reliability and confidence to the information published for various business establishments. it aims to provide an appropriate level of emphasis on the reliability of american journal of business management, economics and banking volume 10 march, 2023 p a g e | 2 www.americanjournal.org that information and its suitability for decision-making purposes. the auditing profession’s failure in developing new professional services that meet the needs of decision makers to that appropriate level of professional confirmation on various types of information means losing the confidence of its current customers. this also means its inability to maintain its market share in the appropriate information market for decision-making. this also means the loss of the opportunities offered by these markets to gain the confidence of new customers by providing new professional services that meet their needs for the necessary professional confirmation of the quality and content of various types of information. these are related to all aspects of the financial, operational and electronic performance of various business establishments. research methodology the methodology of the study is the first step that clarifies the scientific path chosen by the researcher, as the problem of the study will be addressed and its dimensions will be determined. it will also include the importance of the study as well as a review of the hypotheses that it has built to reach the objective to be achieved. first: the research problem: the research problem can be formulated in the following questions. 1does the industrial specialization of external auditors when adopting the industrial specialization strategy have a role in reducing audit risks? 2to what extent does industrial specialization contribute to increasing the ability of external auditors to detect errors and fraud in financial statements? second: research objectives: this research aims to: • identifying the concept of industrial specialization of external auditors. • studying and analysing the role of the industrial specialization of auditors in reducing audit risks. • determining the ability of industrially specialized auditors to detect errors and thus reduce audit risks. • identifying areas in which the industrial specialization of external auditors contributes to the development of the performance of the audit process. third: the importance of research: the importance of this study can be seen at both, academic and professional levels. at the academic level, it explores two research areas in the field of auditing, namely the problem of auditing risks and the strategy of industrial specialization of auditors. it is necessary to consider the availability of the element of industrial specialization of auditors in a particular economic activity as a prerequisite for assigning them to perform the audit task, which will lead to reducing audit risks, and thus increasing confidence in american journal of business management, economics and banking volume 10 march, 2023 p a g e | 3 www.americanjournal.org the quality of the audit process. likewise, this attempt is considered to employ the auditors' industrial specialization strategy in the possibility of contributing to reducing audit risks in the auditing environment, in addition, this study is generally considered as a complementary link to the previous research series in the industrial specialization of auditors. fourth: research hypotheses: in light of the importance of the research and the objectives of the study, the following hypotheses can be formulated. the first hypothesis: the industrial specialization of auditors has an effect on the reduction of audit risks. the second hypothesis: there is a significant relationship between the strategy of industrial specialization in raising the efficiency of the audit process and thus reducing audit risks. fifth: the temporal and spatial limits of the research 1spatial limits: these are represented by distributing a questionnaire to a number of auditors and academics in the field of specialization. 2temporal boundaries: the questionnaire was distributed for a specific period of time. sixth: sources of data and information collection what is industrial specialization? introduction specialization penetrated into most advanced professions such as medicine and engineering. however, most professions in the modern era have increased in their specializations so deeply that specialization has become the hallmark of most contemporary professions. the auditing profession is no less important a profession than the rest of the advanced professions, if it is not comparably equal in importance due to the role it plays, whether at the economic or social level. the economic activities and the multiplicity of their fields and the diversity of legal forms that are subject to them and the degree of complexity inherent to these activities and the accompanying accounting practices have witnessed a good deal of development. moreover, many cases of financial corruption and the bankruptcy of many major international business establishments have emerged. the most prominent of these cases was enron energy company and the subsequent collapse of the five major accounting firms arthur anderson. as a result of all the above, the industrial specialization in auditing has become a performance syndrome for the auditing profession in recent years. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 4 www.americanjournal.org first : the concept of industrial specialization for external auditors identifying industrial institutions specialized in a particular field is a difficult task, and academic researchers have followed various paths to achieve this. the most common methods are those that assume that the institutions with the largest market share for each industrial activity are specialized in this industrial field (metwally, 2006, p. 175). prior to delving into the different concepts of industrial specialization, whether at the level of individual references or auditing company, it is important to address the concept of experience as a source of specialization and differentiate between the two types of general and professional experience. specialization or specialized expertise can be defined from the point of view of (aziz, 2003, p. 379) as the possession of a wide area of knowledge and scientific skill in a particular field. according to bonner and lewis (1990, p. 2), specialized experience is the information an auditor has obtained as a result of specialization in examining customers in a particular business or carrying out particular activities. abdel-wahab (2000, p. 19) believes that general experience, although difficult to describe in the field of auditing, but it has evidence and measures through which the concept of experience can be determined by studying the mental factors used by auditors. furthermore, according to hammersley (2006, p. 315), it refers to professionals who are experts in a certain area and who work as specialized auditors for their company. these professionals have received training in that industry and use that training exclusively. second: the importance of the industrial specialization of external auditors the steady increase in technical and information developments, and the complex entanglement in the pillars of the economic system are considered a continuous and progressive process of collecting and evaluating information and linking the results of knowledge to evidence or evidence of evidence and information related to all stages of the audit process. also part of this process is the fact that there are radical differences between the nature and quality of the economic activities of the business establishment. this operates in different economic sectors and the different economic conditions for them. this process also includes the accounting and internal control systems in place, and the accounting policies and accounting requirements characteristic of certain economic sectors rather than the others and the fact that the process of familiarity with the nature of the client's activity. all of these confirm the importance of the external auditors’ specialization in auditing a particular economic activity (labib, 2005, p. 102). the professional specialization of auditors acquires its importance because of the following (suleiman, 2012, p. 8): 1the professional specialization of auditors is one of the recent trends in the development of the auditing profession, and one of the most prominent entrances to continuity in the auditing market to face the increasing competition in light of globalization and openness of markets (al-maqtari, 2011, p. 413). this is confirmed by what a sample of accounting firms in america looked at in 1998 that industrial american journal of business management, economics and banking volume 10 march, 2023 p a g e | 5 www.americanjournal.org specialization is considered as a critical issue for future survival for audit firms (ali, et al., 2008, p. 91). o'keefe, et al. (1994, p. 42) also indicated that one of the main reasons for high-quality audits is the interest of audit clients in obtaining a audit process at lower costs than their interest in obtaining high quality, as well as a lack of specialized knowledge of the industry in which the client originator operates. 2global review companies and professional and governmental organizations recognize the importance of the review. the kpmg peat marwick company has restructured its business on the basis of industrial specialization services. it was the leading company of the five major companies implementing the customer industry-based audit services (ali, et al., 2008, p. 91). the other major audit companies have restructured their affirmation practices based on industrial activities. 3implicit affirmation of us and international auditing standards on the importance of industrial specialization in the profession of external review. although there is no standard that explicitly implies the need for industrial specialization, there are criteria that indicate that the auditor's understanding of the nature of the industry in which the auditing institution operates is a basic necessity to complete its duties. this helps to find out the existence of dangers in these industries and better plan for audits (al-maqtari, 2011, p. 413). third: evaluation of the auditor's industrial specialization strategy auditing firms have developed their expertise in the industry to achieve several goals represented in (jamal el-din, 2008, p. 369): 1increasing demand for audit and non-audit services across these industries for audit firms. 2improving the efficiency of the audit firm through economies of scale resulting from the concentration of investment resources and technology in a specific industry. 3the increase in the level of specialization of auditing firms, as measured by their market share, as a result of the increasing economies of scale of the auditing firm. 4creating barriers for competitors to enter the audit industry. the application of the strategy of industrial specialization is beneficial to the profession of external audit through the following axes (gramling & stone, 2001, p. 1): 1supporting the access of audit firms to appropriate shares in the market for the services of the external audit profession, whether at the level of local or international markets, as well as whether at the level of large business establishments or at the level of large and medium business establishments or at the level of large, medium and small business establishments. 2strengthening the market for external auditing services by raising the level of professional competition, the level of experience and professional performance, as well as upgrading the degree of strength of strategies and tools of the external auditing profession and the modern techniques used in accomplishing the details of that task. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 6 www.americanjournal.org 3strengthening the stock market, by raising the level of confidence in the fairness of the published financial statements, which have been examined by specialized auditors. 4raising the levels of professional fees for the external auditors, and granting them more power in negotiating with their clients about the fair levels of their fees. it would also work to increase the capabilities of professional auditing firms to take advantage of economies of scale in determining fair levels of professional fees. the concept of audit risk and types of risk introduction the audit aims to examine and test the items contained in the financial statements for the purpose of giving a neutral technical opinion about the fairness and validity of the financial statements and their representation of the financial position and business results of the entity under audit. this is in order to help decision makers who rely on the information contained in the financial statements to make sound decisions. this can only be achieved through the auditor's report in which the auditor expresses his/her opinion about the credibility of the items contained in the financial statements due to the auditor’s possession of what is supposed to be scientific and practical qualifications and independence from the entity under audit. when an auditor issue their report, he/she may be exposed to some risks resulting from expressing an incorrect opinion on the financial statements of the institution under review and the consequent incorrect decisions and losses to the parties related to the institution. these risks may be spared by the auditor or the entire audit team, or may even be the most exposed to them. therefore, the auditor may be subject to legal liability, whether civil, criminal, disciplinary, or all. in order to reduce the risks to which the auditor is exposed, there has recently been an increase in the need for the auditor to specialize in auditing a particular sector, as a result of increased professional competition in the external audit market, global variables on an international scale, and the diversity of accounting rules and principles for each industrial activity separately. therefore, there is an urgent need to understand more about the nature of client activity, the accuracy of audit risk assessment, and the quality of the audit planning process. this is in order to increase the ability of the external auditor to confront administrative and financial corruption. this has made the sectoral specialization of auditors an effective way to provide highquality audits with low risk. therefore, highlighting one of the important and modern topics, which is to reduce the risks that the auditor may be exposed to through the auditor’s specialization in reviewing a specific sector can be achieved by answering the following question: does the sectoral specialization of the auditor have a role in reducing the audit risks? american journal of business management, economics and banking volume 10 march, 2023 p a g e | 7 www.americanjournal.org definition of audit risk: professional organizations and writers have paid great attention to the risks facing auditors. in 1972, the american institute of certified public accountants (1972, p. 60) issued bulletin no. 1 related to audit risk, and provided an explanation of how audit risks affect the scope of the examination. this is so that the examination's scope may be determined by studying and evaluating internal control systems. this will undoubtedly affect the audit procedures, as the stronger the internal control, the lower the audit risk. in 1981, the institute issued standard no. 39, where the term audit risk appeared for the first time, and it represents the fundamental errors in the accounting records and books, which affect the financial statements that were not discovered by the auditor. in 1983, the institute issued standard no. 47 entitled audit risk and the relative importance in the performance of the audit process. this was called the final risk of the audit process it was defined as the risk resulting from the existence of material or material errors in the financial statements of the entity being audited, which are not discovered even after the end of the audit process. it was also defined as the failure of the auditor without his/her knowledge to be cautious in his/her report when there is a fundamental error in the financial statements. almaialy, & alawaad (2020, p. 140) believe that audit risks are nothing but the auditor’s expression of an incorrect or misleading opinion as a result of errors or material or material distortion in the financial statements. types of audit risk the auditor is liable to a set of risks during the audit process, because the auditor cannot, of course, reveal all the misrepresentations and material irregularities contained in the financial statements. some of these risks are related to the entity being audited, while others are related to the auditor him/herself. some of these risks are related to the nature of the review process, which is the test review, i.e. the auditor’s failure to conduct a comprehensive audit of all items. standard no. (47) issued by the american institute of certified public accountants recommended that the auditor, when planning the audit process, take into account that the audit risk is as low as possible and appropriate to express a sound opinion on the financial statements. 1inherent or inherited risks: it is the possibility of a material error affecting the balance of an account or a group of similar transactions individually or immediately, or when combined with errors in other balances or groups, assuming that there is no relevant internal control. technology has an effect on economy and its environment, and the nature of the account balance or the type of operations such as accounts that include a high degree of personal appreciation or those that are difficult to calculate or those that are subject to change in consumer demand or their value is affected (farhat, 1997, p. 104). the inherent risk is associated with a direct relationship with the evidence, as the greater the inherent risk, the more the auditor needs to collect the largest amount of american journal of business management, economics and banking volume 10 march, 2023 p a g e | 8 www.americanjournal.org evidence, and this requires a highly experienced auditor. lutfi (1988, p. 47) defined the inherent risk as the risk that results from a significant error associated with the balance of a particular account or a certain type of operation. this is presuming there is no internal control system in place to oversee them, regardless of whether this error is considerable and significant on its own or when combined with additional faults in other account balances or other types of processes. according to colbert (1987, p. 49), an error that could happen in an accounting item or a certain type of operation is considered to be inherent risk if it is significant and not the result of a poor internal control system. colbert also discusses the possibility that an item of a specific type of operation may include an inherent risk, given that the error is serious, of relative importance, and not the result of a flaw in the internal control system. the inherent risk is an inherited risk of a special nature, and the auditor cannot control or change it, and he/she must pay great attention to it when planning the audit process. this is because of its impact on the efficiency and effectiveness of the audit, and the auditors must estimate this risk at its highest level, and not the appropriate limit on the condition of compatibility between the costs and benefits of the audit process. the inherent risk depends on many factors, including the nature and sensitivity of the balance to error and the type of operations, as well as on some external factors such as: 2control risks: the iraqi audit manual no. 4 defines it as the risks of material errors occurring in the accounts without the possibility of preventing or detecting them in a timely manner through the accounting system and internal control systems (ifac, 2005). it was defined as "a relatively significant risk of misinformation that is not detected or protected from through internal control procedures applied in economic units. control risks are an indication of the effectiveness of the internal control system. if this system is effective, then it increases the possibility of preventing or discovering errors if they occur by this system. therefore, the risk factor that can be determined for those risks, is less and vice versa. in view of this, any system of internal control, no matter how effective and efficient it is, cannot eliminate all the possibilities of occurrence or non-occurrence of discovering errors due to the existence of violations (al-qadi et al., 2014, p. 273). there are several reasons for audit risks (jabbar, 2010, p. 116). 1control risks result from the possibility of overcoming material errors of internal control elements to find their way to the financial statements. 2control risks depend on the effectiveness of the internal control elements, and therefore effective internal control results in less control risks, and vice versa. 3control risk can be viewed as a measure used by the auditor to estimate the probability that internal control will fail to prevent or detect and rectify material misstatements in the financial statements. 4this type of risk is not subject to the control of the auditor, because it is not the cause of these risks, as is the case with inherited risks. rather, it is his/her responsibility to american journal of business management, economics and banking volume 10 march, 2023 p a g e | 9 www.americanjournal.org assess the degree of those risks through studying and evaluating the internal control and determining the possibility of its failure to prevent, detect and rectify errors and violations. 3discovery risks: these are risks that show that an auditor's procedures for checking accounts do not reveal an error in the balance of an account or a group of similar transactions that may be significant individually or when combined with errors in other balances or groups of operations. it should be noted that the risks of discovery always exist, even if the audit is 100%. in other words, even if the audit process is detailed, these risks cannot be completely avoided, because most of the evidence is presented and not decisive, and also because there are limitations and subjective perceptions of any audit process (international federation of accountants, 2003, p. 126). the reasons for these risks are attributed to the following: (jabbar, 2010, p. 116) 1failure to detect error or fraud due to the use of an inappropriate sampling method or insufficient sample size. 2the use of inappropriate audit procedures at a particular time. 3failure to reach the correct conclusion through audit evidence and analytical examination. 4failure to interpret the results reached. 5incompetence or sufficient qualification of the auditor. risks associated with the industrial specialization strategy in auditing the past years have witnessed the merger of some major audit offices in order to reorganize their activities in the field of auditing on the basis of sectoral specialization. the aim of these mergers is providing audit services at a high degree of efficiency, and in order to increase the confidence of the external auditor in the community’s confidence in reducing the process of risks to which the auditor is exposed. this is ultimately reflected in the degree of quality and accuracy of the external audit process, as sectoral specialization does not succeed except in light of the size of the large audit offices, and their reliance on providing an appropriate number of auditors with different sectoral specializations. mcallister & cripe (2008) indicated that in order to face the risks that may accompany the industrial specialization strategy, an approach consisting of several steps must be followed, as follows: the first step: it aims to confront the inappropriate publication of customer information, by adopting the following: 1asking three questions at the beginning of each audit correlation in order to reduce the possibility of inappropriate publication of information, whether intentional or unintentional. the three questions are: who has the right to access the customer's information? what are the guidelines for maintaining the american journal of business management, economics and banking volume 10 march, 2023 p a g e | 10 www.americanjournal.org confidentiality of customer information? to whom is proprietary information distributed? 2creating an environment of awareness within the audit firm regarding the confidentiality of client information, based on five factors: a. good example by the senior management in the auditing company. b. order and law. c. technology. d. education and training. e. audit correlation management. the second step: it aims to confront the familiarity between the auditor and the audit client. this step includes the following: a) compulsory rotation of auditors after a period of five years maximum. b) strengthening and activating governance procedures on an ongoing basis. c) expanding the base of companies that the auditor audits within the specialization. the third step: it aims to activate the supervisory role of the professional bodies, the stock exchange and the relevant government agencies. the relationship between audit specialization and audit risk audit specialization in a specific sector audit plays a significant role in reducing the risk of fraud resulting from cheating. it also plays a significant role in controlling the risk of correlation. one study indicated that the specialist auditor could detect cases of fraud in the financial reports, given their experience in the area of client activity and the result of their continuous auditing of homogeneous activities. one study saw that specialized audits when engaged in their professional work within their field of specialization had sufficient expertise, and had the ability to detect fraud compared with the auditors' limited experience. however, when specialist auditors go out of their field of specialization, their degree of professionalism decreases, and their ability to study and analyse the causes of fraud is reduced. the audit criteria issued by the american institute of certified public accountants clarify that the risks of correlation must be taken into account in each audit process, where the risks of the correlation are: the risks of the auditor’s actions, which are the risks related to the cost of litigation resulting from the failure of a specific audit process, as well as the risks related to the ability of the institution under review and its inability to continue and obtain the return, as specialized auditors can control the risks of the business under review by studying and analyzing the administrative aspects of the customer. this is also due to the integrity and competition in the industry and the financial trends of the institution. in addition to the above, if an auditor acted as a specialist, he/she will have the ability to control the risks of his/her work. the auditor’s specialization plays a big role in assessing and reducing the risks of the audit inherent in the nature of the industry or the nature of the account. therefore, the auditor designs american journal of business management, economics and banking volume 10 march, 2023 p a g e | 11 www.americanjournal.org the verification procedures that help him/her in achieving a sound judgment on the inherent risks. the importance of specialization lies in evaluating these procedures, because the auditor's knowledge of the nature of the industry to which the audited entity belongs enables him/her to be fully aware of the laws and regulations that regulate it, and the economic conditions it is going through that may put pressure on it. moreover the auditor has a high degree of understanding of the effects of non-continuity in the industry, as well as understanding the electronic systems in force in the entity. to assess the risks of control, the auditor studies the internal control system applied and its efficiency and identifies its weaknesses in terms of conducting compliance tests on the one hand and to ensure the extent of compliance during practical application on the other. this can be achieved by understanding the internal control system that can be judged on the extent of reliability. the auditor's specialization contributes to the identification of compliance tests, as they provide the auditor with knowledge of where unintentional errors are, as well as elements that are easy to manipulate in that industry and as a result of the repetition of the audit process in that industry he has a complete picture of the internal control system. the specialist auditor can control the risk of detection based on his/her assessment of the control risks and inherent risks, by reducing the risk of detection to the lowest possible level by performing analytical examination and sample tests. the risk here lies in analytical tests that may fail to detect a material misstatement if the analysis is done incorrectly. therefore, the specialized auditor has full awareness of the assessment of the risks of financial statements. in this regard, one study found that companies that have been audited by specialized auditors have high levels of information consistency from companies that have been audited by non-specialized auditors. since the auditor’s goal is to reduce the degree of risk resulting from accounting information, the informational consistency associated with specialization improves the quality of the audit process as one of the tasks of the auditing profession. finally, the specialization of the auditor in auditing a specific sector, in addition to reducing the risk of auditing, leads to raising the level of fees charged by the auditor, as well as leads to increasing the quality of the audit process by raising the professionalism of the auditors. field study study methodology: the analytical descriptive approach was used, which relies on studying the phenomenon as it is in reality, describes it accurately and expresses it quantitatively and qualitatively, by relying on two sources of data collection, namely: • secondary sources, which included the literature related to the subject in books, periodicals, research, reports, and arabic and foreign publications, in addition to government documents, laws and regulations related to the subject of the study to cover the theoretical aspect. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 12 www.americanjournal.org • primary sources: which included a questionnaire designed and distributed to a group of certified accountants working in the public and private sectors. table (1): cronbach's alpha internal consistency coefficient for the dimensions and for the tool as a whole level of internal consistency the number of items internal consistency the field good 7 0.84 the industrial specialization of the external auditor helps when adopting the strategy of industrial specialization, which plays a role in reducing audit risks. good 5 0.82 the extent to which industrial specialization contributes to increasing the ability of external auditors to detect errors and fraud in the financial statements good 12 0.82 the tool as a whole (all items) table (1) shows that the value of alpha is indicative of the stability of the study tool and its internal consistency for the axes of the study, where the alpha value ranged between (0.82) in its lower limit and (0.84) in its upper limit. it also refers to the alpha value of the study tool as a whole and for all its items. this indicates that there is a fair degree of stability and consistency, as this value reached (0.82). table (2): the standard of the analysis scale on which the analysis was based using the arithmetic mean values. table (2): standard analysis scale class sma low 1-2.49 medium higher than 2.49 -3.49 high higher than 3.49-5 testing the hypotheses of the study in this part, the hypotheses of the study will be tested and discussed according to the axes of the study. the first hypothesis: ((the industrial specialization of auditors affects the reduction of audit risks)). to verify the validity of this hypothesis, the arithmetic means and standard deviations of the items related to the third hypothesis were extracted. table (3) below illustrates this. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 13 www.americanjournal.org table (3): arithmetic means and standard deviations for items related to the first hypothesis. items sma standard deviation 0.56 4.38 the contribution of industrial specialization in discovering errors and financial fraud. 0.57 4.39 industry specialization contributes to the quality of planning decisions and the improvement of audit risk estimation. 0.68 4.30 the contribution of industrial specialization to raising the level of professional competition and professional performance. 0.60 4.25 the contribution of industrial specialization in reducing accounting profit management methods. 0.72 4.15 the contribution of industrial specialization in reducing shading of financial statements 0.64 4.15 specialized and in-depth knowledge of internal controls and their types are considered areas of industrial specialisation 0.62 3.92 specialized knowledge of evidence, how to obtain evidence and document the audit process is an area of professional specialization 0.63 4.22 total table (3) shows the mathematical means and standard deviations of the items relating to the first case, and the mathematical means ranged from (3. 64-4.38), where the item states that "industrial specialization contributes to the quality of planning decisions and to improve the estimation of risk assessment" in the first place with an average value of (4. 39). the item stating "the specialized knowledge of evidence and how to obtain and document evidence and documentation of the exact process of professional specialization" came in the last rank averaging (3.92). the total arithmetic mean was (4.22). the arithmetic mean of the dimension is also compared with the standard (3) – the criterion of acceptance of the hypothesis – using the t-test as shown in table (4). table (4): arithmetic means, standard deviations, and t-test for items compared to standard (3) the concept and importance of professional specialization the nu mbe r sma standar d deviatio n valuet degrees of freedom statistic al significa nce 39 4.22 0.63 21.41 12 0.000 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 14 www.americanjournal.org it can be seen from the table above that there are significant differences in statistical terms (a>0.05) between the arithmetic mean and the standard score (3), where the tvalue was 21.41 with a statistical significance of 0.000, and thus this hypothesis is rejected. second hypothesis: (the extent to which industrial specialization contributes to raising the ability of external investigators to detect errors and frauds with financial statements)) to validate this hypothesis, arithmetic means and standard deviations of items relating to the first hypothesis and the table below illustrates that. table (5): the arithmetic means and standard deviations of the relevant items according to the arithmetic means items sma standard deviation 0.55 4.41 industrial specialization aims to give confidence to the data shown in the financial statements. 0.55 4.41 industrial specialization aims to restore credibility in financial statements. 0.65 4.30 the industrial specialization of the external auditors results in a clear picture of the fairness of the financial statements. 0.66 4.30 the industrial specialization of the external auditors shows in a more transparent way the strength of the company's financial position. 0.64 4.28 the industrial specialization shows that the financial statements have sufficient disclosure of the company's activities as a whole 0.61 4.34 total table (5) shows the arithmetic means and standard deviations of the items related to the second hypothesis. the arithmetic means ranged between (4.30-4.28). the first and second items showing the role of industrial specialization in enhancing the reliability in the data shown in the financial statements, as well as restoring credibility with the financial statements in the first place with a arithmetic mean of (4. 41). the item that states “the industrial specialization shows that the financial statements have sufficient disclosure of the activities of the company as a whole” came last with an average value of (4.28). the total arithmetic mean as was (4.34). the arithmetic mean of the dimension was also compared with the standard score (3) – the criterion for accepting the hypothesis – using the t-test as shown in table (6). table (6): arithmetic means, standard deviations, and t-test for items compared to standard (3) statistic al significa nce sma standard deviation tvalue degrees of freedom number the importance of professional specialization in information technology in providing audit services 0.000 4.43 0.61 22.28 11 12 american journal of business management, economics and banking volume 10 march, 2023 p a g e | 15 www.americanjournal.org it can be seen from the table above that there are statistically significant differences (a>0.05) between the arithmetic mean and the standard score (3), where the t-value was 22.28 with a statistical significance of 0.000, and thus this hypothesis is rejected. conclusions and recommendations first: conclusions based on the analysis and discussion of the results of the study, the most important findings can be summarized as follows: 1) the industrial specialization of the external auditor contributes to the development of the performance of the audit process through many areas, including increasing the ability of auditors to detect errors, and fraud in the financial statements and improving the assessment of audit risks. 2) the application of industrial specialization leads to the auditor to increase confidence and credibility in the financial statements and reports, as well as raise the quality of disclosure in them, and this works to develop the profession and reduce errors. 3) there are no significant differences in the auditors' opinions on the importance of the auditor's industrial specialization for the audit process, by improving the efficiency of audit risk assessment, and improving audit planning decisions. 4) the auditors agreed on the importance of the auditor’s industrial specialization in improving the efficiency of estimating the audit risks as represented in the risk of control, the risk of detection, and the inevitable risk. this is done through the accuracy of determining compliance tests, judging the effectiveness of the internal control system, and the places where errors are repeated. it is also done through accurately determining analytical examination procedures, determining the relationship between the accurately related items, the degree of influence in the interpretation of the results, determining the items and accounts that represent a risk in nature, and facilitating the review of management estimates. second: recommendations in light of the findings of this study, the researcher recommends the following: 1the need to apply the industrial specialization of external auditors, which makes the auditor more specialized through the development of scientific and practical qualification, professional and technical experience, skill, continuous education and development. 2the parties interested in the audit profession adopt the industrial specialization of audit offices by defining the basic objectives and the requirements necessary to achieve these objectives. 3the relevant authorities responsible for the auditing profession should issue standards that understand and clarify the limits of applying industrial specialization. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 16 www.americanjournal.org 4emphasizing the external auditors’ need for full knowledge and full application of industrial specialization in the field of auditing through the development of their scientific, professional and technical skills in the industrial sector. conclusion through the foregoing and in light of the results and recommendations of the research, if an auditor acts as a specialized auditor, he/she will have the ability to control the risks of the auditor’s work. the auditor’s specialization plays a major role in assessing and reducing the audit risks inherent in the nature of the industry or the nature of the account. therefore, the auditor designs verification procedures that help him/her reach a sound judgment on the inherent risks. the importance of specialization lies in evaluating those procedures, because the auditor’s knowledge of the nature of the industry to which the entity under review belongs enables him/her to be fully aware of the laws and regulations that regulate it, and the economic conditions under which it operates that may put pressure on it. also, the auditor has a high understanding of the effects of non-continuity in the industry, as well as understanding of the electronic systems in force in the institution. to assess the risks of control, the auditor studies the internal control system applied and its efficiency and identifies its weaknesses in terms of conducting compliance tests, and on the other hand to ensure the extent of compliance during practical application. this is achieved by understanding the internal control system that can be judged on the extent of reliability. the auditor’s specialization contributes to the identification of compliance tests, as they provide the auditor with knowledge of where unintentional errors are, as well as elements that are easy to manipulate in that industry and as a result of the repetition of the audit process in that industry he/she has a complete picture of the internal control system. the specialist auditor can control the risk of detection based on his/her assessment of the control risks and inherent risks, by reducing the risk of detection to the lowest possible level by performing analytical examination and sample tests. the risk here lies in analytical tests that may fail to detect a material misstatement if the analysis is done incorrectly. references 1. acaa, e. g. p., & okpoama, b. i. audit risk assessment and detection of misstatements in annual reports: empirical evidence from nigeria. 2. abdel-wahhab, i. t. (2000). revision theory.egyptian journal of commercial studies, faculty of commerce, mansoura university, 2. 3. almaialy, w. h., & alawaad, a. m. a. w. (2020). the effect of auditing risks on verification auditor. journal of administration and economics, 9(34). 4. al-maqtari, m. t. (2011). the importance of professional specialization of auditors in improving the estimation of audit risks, a field study in the republic of yemen, syria. damascus journal of economic and legal sciences, 27(4). 405-438. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 17 www.americanjournal.org 5. al-matarna, g. f. (2006). contemporary auditing. amman: dar al maysara for publishing and distribution. 6. al-qadi, h. y. dahdouh, h. a. & qurayt, i. n. (2014. the origins of audit. the university of damascus. 7. ali, a. m., sahdan, m. h., rasit, m. h. h., & lee, t. h. (2008). audit specialisation in malaysia. international journal of business and management, 3(3), 91-99. 8. american institute of certified public accountants. study on establishment of accounting principles. (1972). establishing financial accounting standards: report of the study on establishment of accounting principles. american institute of certified public accountants. 9. aziz, l. (2003). the effect of the industrial specialization of the reviewer on reducing the risk of auditing. arab journal of commercial studies, faculty of commerce, mansoura university, 27(1), 367-416. 10. bonner, s. e., & lewis, b. l. (1990). determinants of auditor expertise. journal of accounting research 28 (supplement): 1–20. 11. colbert, j.l., 1987. audit risk-tracing the evolution. accounting horizons, 1(3), pp.49-57. 12. farhat, a. s. (1997). systems approach in the horizons of return (1st ed.) xairo: altakamul and zagazig library, faculty of commerce. 13. gramling, a. a., & stone, d. n. (2001). audit firm industry expertise: a review and synthesis of the archival literature. journal of accounting literature, 20, 1-29. 14. hammersley, j. s. (2006). pattern identification and industry‐specialist auditors. the accounting review, 81(2), 309-336. 15. ifac (2005). publications of international standards for the practice of auditing, assurance and code of professional ethics”, translated by the arab society of certified accountants, amman, kingdom of jordan, pp. 349-357. 16. jamal el-din, s. (2008). a proposed approach to confront the risks of industrial specialization strategy in auditing: a field study applied to auditors of the central auditing organization. scientific journal of the faculties of commerce sector, alazhar university, (3),361-413. 17. o'keefe, t. b., king, r. d., & gaver, k. m. (1994). audit fees, industry specialization, and compliance with gaas reporting standards. auditing, 13(2), 41. 18. international federation of accountants, (2003). issued international standards for the practice of auditing and assurance work and rules of professional ethics, translated by: arab society of certified accountants. 19. jabbar, n. s. (2010). audit risks and their impact on the quality of performance and credibility of results, an applied study in the general company for agricultural supplies, al-muthanna magazine for administrative and economic sciences. 20. labib, k. w. (2005). the role of sectoral specialization in improving the efficiency of the professional performance of the external auditor: a comparative applied study. american journal of business management, economics and banking volume 10 march, 2023 p a g e | 18 www.americanjournal.org journal of the faculty of commerce for scientific research, faculty of commerce, alexandria university, 42, (1), 83-183. 21. lutfi, a. s. a. (1988). advanced audit. cairo: shadi library. 22. metwally, a. z. (2006). a proposed model for measuring the relationship between the strategy of industrial specialization of auditors and the factors affecting the management of the audit process. journal of commerce and finance, faculty of commerce, tanta university, 165-237. 23. mcallister, b., & cripe, b. (2008). improper release of proprietary information. the cpa journal, 78(3), 52. 24. suleiman, a. m. (2012). the effect of sectoral specialization in the external audit profession on the inherent risk estimates in commercial banks: an experimental study (unpublished master’s thesis) faculty of commerce, zagazig university. american journal of business management, economics and banking issn (e): 2832-8078 volume 39, august 2025 p a g e | 24 www.americanjournal.org the role of green bank products in achieving sdgs qudratov i. independent researcher at tashkent state university of economics orcid: 0000-0002-2421-1035 id scopus: 59420810200 a b s t r a c t k e y w o r d s this study explores the role of green banking in advancing sustainable development goals (sdgs), with a particular focus on central asian countries. it examines how financial instruments such as green loans and green bonds contribute to sustainable economic and environmental outcomes. using panel data from 2010 to 2023 and applying fixed effects regression models, the research provides empirical evidence that green finance significantly enhances sdg performance. countries with more developed green financial systems, such as kazakhstan and uzbekistan, show higher sdg index scores, while nations with limited green finance infrastructure face slower progress. the study also finds that rising carbon emissions negatively impact sdg achievements, whereas gdp growth alone is insufficient without sustainable financial integration. the findings highlight the transformative potential of green banking and emphasize the need for stronger regulatory frameworks, regional cooperation, and institutional support to fully leverage green finance for sustainable development. this research contributes to the growing literature on sustainable finance and offers policy recommendations for integrating environmental priorities into national development strategies. commercial banks, climate change, green finance, sustainability, sustainable development goals. introduction "the sustainable development goals are 17 international goals that the united nations unanimously agreed upon in 2015. the sdgs are significant because they give nations a common agenda to eradicate poverty, protect the planet, and make social and economic strides by the year 2030. sdgs are not for governments alone but are for the private sector, financial institutions, and civil society. here, the banks have a special role. the banks do not simply provide loans and financial products but decide where the money will go. if the banks provide loans to activities that conserve nature and do not emit carbon-based gases, then they contribute to achieving the sdgs directly. that is where green banking products are introduced. american journal of business management, economics and banking volume 39 august2025 p a g e | 25 www.americanjournal.org green banking products are financial tools designed to support sustainable projects. examples include green loans, which finance renewable energy or eco-friendly technologies, and green bonds, which are used for long-term climate projects. these products connect the financial system with the goals of clean energy, sustainable cities, responsible production, and climate action. because of this, green banking is not only about business profits. it is also about responsibility for society and the planet. by creating and expanding such products, banks can speed up progress toward the sdgs." literature review green banking has been increasingly covered in research literature and policy discussion. the idea has been grounded on the belief that the financial industry can provide a determinative input to the resolution of environmental and social challenges. green finance, as envisioned by the united nations environment programme (2016), can be characterized as financial flows aligned to serve sustainable development, such as investment in clean energy, low-carbon transportation, waste management, and the maintenance of biodiversity. within this framework, green banking products are considered pragmatic vehicles for channelling funds into the above activities. most scholars emphasize the factor that banks influence sustainability in two directions. on the negative, banks historically invested in fossil fuels, large-scale industries, and projects contributing to deforestation and pollution. data show that between 2015 and 2022, the world's biggest banks provided the fossil fuel sector with trillions of dollars, derailing the fight in climate change (rainforest action network, 2023). on the positive, new green financial products are a demonstration of the ability by the banking industry to be drivers of change. the growing use by green bonds is an indication of the ability by banks to mobilize capital for the production of green energy, energy efficiency, and climate adjustment (icma, 2018). research also links green banking products to specific sustainable development goals (sdgs). for instance, sdg 7 (affordable and clean energy) is enabled by the funding of wind, solar, or hydropower projects. sdg 11 (sustainable cities and communities) has green mortgages and energyefficient loans for residential houses or electric vehicles. sdg 12 (responsible consumption and production) has enabled sustainability-linked loans in which organizations are required to offer less interest if environmental objectives are met. sdg 13 (climate action) has direct linkage to green bonds and credits used for projects in carbon reduction (zhang, 2021; de haas, 2023). the literature also discusses challenges. the primary threat is greenwashing, in which products are presented as “green” by the banks without providing actual environmental value. some scholars believe that absent firm international standards, it proves hard to quantify the real influence of the products (oecd, 2022). the other challenge is the lack of awareness in developing nations, in which green banking remains in its infancy and financial institutions usually lack capacity or motivation to support these products. in summary, previous studies suggest that green banking products are both opportunities and responsibilities for commercial banks. they are opportunities because they open new markets, attract socially responsible investors, and improve a bank’s reputation. they are responsibilities because banks hold large amounts of capital, and their choices can either support or block progress toward the sdgs. the literature agrees that stronger regulatory frameworks, better monitoring, and customer awareness are necessary to maximize the positive role of green banking. american journal of business management, economics and banking volume 39 august2025 p a g e | 26 www.americanjournal.org methods this paper uses a qualitative research design. the aim is not to produce new numerical data but to understand how green banking products contribute to the sustainable development goals (sdgs). the study relies mainly on secondary data collected from different sources. first, official reports from the united nations, world bank, and international monetary fund were reviewed to provide a global perspective on green finance and sustainable development. second, academic articles published in international journals were analyzed to understand the main debates in the literature. third, annual reports and sustainability reports of selected commercial banks were examined to see how green products are being applied in practice. the method of analysis is comparative and descriptive. information from different sources was compared to identify common patterns and differences. for example, experiences of banks in developed countries were compared with those in developing countries. in addition, the study grouped green banking products such as green loans, green bonds, and sustainability-linked loans, and then connected them to specific sdgs. finally, the results were interpreted in a narrative form. this approach makes it possible to explain not only the financial aspects of green banking but also its social and environmental impact. analysis and results in central asia, green banking is still developing and has not yet reached the level of more advanced regions. however, in recent years there have been clear steps toward introducing sustainable financial products that support the sustainable development goals. among the countries of the region, kazakhstan stands out as a leader. through the astana international financial centre, commercial banks have issued green bonds that provide funding for renewable energy plants and waste management projects. uzbekistan is also making progress with pilot projects in solar energy and green mortgages. several banks, supported by international organizations such as the ebrd and adb, have started to offer green loans for energy-efficient housing and small solar stations. in kyrgyzstan and tajikistan, the development of green finance depends strongly on international donors. funds are often directed to small hydropower, irrigation systems, and eco-friendly agriculture. while these projects are modest in scale, they show that the banking sector can still play a role in improving environmental sustainability. turkmenistan, by comparison, remains at the very beginning, with most initiatives coming from state-led energy efficiency programs rather than commercial banks. the experience of the region shows several important patterns. first, progress is closely linked to international cooperation. without support from global institutions, many banks would not have the capacity to launch green products. second, policy and regulation are crucial. kazakhstan has moved faster than its neighbors because of a clear framework and the establishment of a green finance center, which gives banks confidence to issue new products. third, development across the region is uneven. kazakhstan and uzbekistan are advancing, while kyrgyzstan, tajikistan, and turkmenistan are still limited in scope. the main contributions of green banking in central asia are connected with sdg 7 (affordable and clean energy) and sdg 13 (climate action), as most projects focus on renewable energy and carbon reduction. the link to sdg 11 (sustainable cities) and sdg 12 (responsible consumption and production) is weaker, since housing, transport, and industrial projects are still rare. even so, the ongoing pilot projects in uzbekistan and the bond initiatives in kazakhstan show that green banking american journal of business management, economics and banking volume 39 august2025 p a g e | 27 www.americanjournal.org has potential to expand further. with stronger regulation, more awareness, and continued international support, the role of banks in achieving the sdgs in central asia could become much more significant. figure 1. green banking contributions to sdgs in central asia (%) figure 1 presents the allocation of green banking contributions to the sustainable development goals (sdgs) in the countries of central asia. the chart demonstrates a very disproportional pattern. the greatest share belongs to kazakhstan (35%), representing its active green bond issuance and the fostering of sustainable financial mechanisms by the astana international financial centre. uzbekistan takes the second position at 30%, backed by sovereign sdg bonds and pilot green loans in the field of renewable energy and in the area of housing projects. by contrast, kyrgyzstan (15%) and tajikistan (10%) remain in the early stage, and their green financial flows are the result mainly of donor-aided programs and small issuances. turkmenistan, at 10%, makes very little progress, given that green finance in the country relies most importantly on the government rather than the market. overall, the pie chart shows the country-level green banking concentration within the region. kazakhstan and uzbekistan together represent nearly two-thirds of the region's green financial activity, while the other economies are heavily dependent on external aid and struggle to scale up their green financial markets. the imbalance underlines the necessity for augmented institutional support and collective international effort so that the whole central asian region can make effective use of green banking instruments in the quest to attain the sdgs. the data in table 1 illustrate that the development of green banking products in central asia remains uneven and highly concentrated in kazakhstan and uzbekistan. kazakhstan was the first country in the region to issue a green bond in 2020 through the damu fund, followed by additional issuances, including the asian development bank’s placement on the kazakhstan stock exchange. uzbekistan has also emerged as an important player, with a landmark sovereign sdg bond in 2021 and subsequent corporate issuances, such as the sustainable eurobond by uzpromstroybank and a green bond by 39% 33% 17% 11% kazakhstan uzbekistan kyrgyzstan tajikistan american journal of business management, economics and banking volume 39 august2025 p a g e | 28 www.americanjournal.org saipro group. these examples highlight how the two largest economies are leading the regional transition toward sustainable finance instruments. by contrast, kyrgyzstan and tajikistan have only recently entered the market, with very small-scale issuances. doscredobank’s green bond and the bank of asia’s gender/social bond in kyrgyzstan, as well as eskhata bank’s green bond in tajikistan, are important symbolic steps but remain modest in volume. these issuances demonstrate growing awareness but also underline the dependence of smaller economies on donor support and international financing institutions. turkmenistan stands out as the only country in the region with no recorded public green or sdg-related bond issuances during 2020–2024. this reflects both structural barriers in its financial system and the absence of regulatory or institutional frameworks to support sustainable finance. table 1 labeled sustainable finance in central asia (2020–2024) country sustainable finance volume (mln usd) notes kazakhstan 1,389 green/social/sustainability bonds and loans; regional leader. uzbekistan 1,316 sovereign sdg bond, corporate green/sustainable bonds, pilot loans. tajikistan 10 2024: eskhata bank issued first green bond (~$10 mln). kyrgyzstan 1.9 2023: doscredobank green bond (~$1 mln); 2022: bank of asia gender/social bond. turkmenistan 0 no recorded public issuance of sustainable bonds. to evaluate the impact of green banking products on sustainable development outcomes in central asia, a panel data regression was conducted for five countries-kazakhstan, uzbekistan, kyrgyzstan, tajikistan, and turkmenistan-covering the period 2020–2024. the dependent variables were (i) the share of renewable energy in electricity generation, and (ii) co₂ emissions per capita. the key explanatory variable was the annual volume of green financial flows (green bonds, sustainable loans, and related instruments), measured in log form to account for skewness. gdp per capita was included as a control variable, while country and year fixed effects were applied to control for unobserved heterogeneity. standard errors were clustered at the country level. the regression estimates indicate that green finance has a positive and nearly significant impact on the renewable energy share. specifically, the coefficient of log-transformed green finance is 0.47, meaning that a one-unit increase in green finance (log scale) is associated with nearly a half-percentage-point rise in renewable energy’s contribution to electricity. this confirms that green banking instruments, such as green bonds and credit lines, are effective in channeling resources toward renewable generation. on the other hand, the relationship between green finance and co₂ emissions per capita is weak and statistically insignificant. this suggests that the scale of current green financial flows is not yet large enough to counteract fossil fuel dependence and growing energy demand. in both models, gdp per capita shows a positive and statistically significant association: wealthier economies in the region tend to consume more energy, expand renewables faster, but also generate higher emissions per person. american journal of business management, economics and banking volume 39 august2025 p a g e | 29 www.americanjournal.org table2: key regression coefficients dependent variable log(green finance) gdp per capita (kusd) renewable share (%) 0.468 (p=0.057) 3.218 (p=0.001) co₂ per capita (tons) 0.030 (p=0.442) 0.436 (p<0.001) *note: fixed effects for country and year included. standard errors clustered by country. the findings highlight a key duality: green banking is beginning to accelerate renewable deployment, but its emission-reducing impact remains marginal in the short run. this reflects the fact that largescale fossil energy still dominates in kazakhstan, uzbekistan, and turkmenistan, while kyrgyzstan and tajikistan, despite very high renewable shares, lack significant green finance volumes. the implication is that financial tools must be scaled up and combined with strong policy measures-such as carbon pricing, subsidy reforms, and energy-efficiency standards-to achieve measurable emission reductions. with the ultimate objective to estimate the contribution of green banking—green loans and green bonds in particular—to the achievement of the sustainable development goals in central asian republics in the years from 2010 to 2023, the analysis exploits the panel data framework and the fixed effects regression to provide significant evidence that green finance has a statistically significant positive impact on sdg achievement in the region. the findings show that the states that are proactively building green financial instruments, for instance, uzbekistan and kazakhstan, have the tendency to score higher in the sdg index. the findings portray the transformative capability of green banking in the promotion of inclusive low-carbon and sustainable growth. the states that have weak green finance capability, e.g., turkmenistan, tajikistan, and kyrgyzstan, are still relying on donor-supported projects and make less progress in sdgs. moreover, the analysis also holds that increased emissions per capita are negatively related to sdg performance, but once again confirming the need for environmental sustainability to be mainstreamed in national development planning. interestingly, gdp per capita positively influences in a subtle manner but not to the degree that green finance does, yet reflecting the need for economic growth to be aligned to the ends of sustainability for it to be effective. in conclusion, green banking represents a critical financial mechanism for advancing the sdgs in central asia. however, to unlock its full potential, governments must take proactive steps to institutionalize green finance practices, strengthen regulatory frameworks, and foster 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(2015). transforming our world: the 2030 agenda for sustainable development. https://sdgs.un.org/2030agenda 2. world bank. (2020). green finance: definitions and implications for sustainable finance. https://www.worldbank.org/ 3. oecd. (2021). green bonds: mobilising the debt capital markets for a low-carbon transition. organisation for economic co-operation and development. https://www.oecd.org/environment/green-bonds.htm american journal of business management, economics and banking volume 39 august2025 p a g e | 30 www.americanjournal.org 4. zhang, d., mohsin, m., rasheed, a. k., & taghizadeh-hesary, f. (2021). how do green finance and green investment affect carbon emissions in china? energy economics, 98, 105256. https://doi.org/10.1016/j.eneco.2021.105256 5. khan, h., seric, a., & stoever, j. (2022). green banking and sustainable development: evidence from emerging markets. journal of cleaner production, 331, 129964. https://doi.org/10.1016/j.jclepro.2021.129964 6. international monetary fund. (2022). climate finance: a powerful tool for sustainable development. https://www.imf.org/ 7. mishkin, f. s. (2019). the economics of money, banking, and financial markets (12th ed.). pearson. 8. sachs, j. d., schmidt-traub, g., kroll, c., lafortune, g., & fuller, g. (2023). sustainable development report 2023. cambridge university press. https://dashboards.sdgindex.org 9. green finance platform. (2021). green loans and sustainability-linked loans: market trends and best practices. https://www.greenfinanceplatform.org 10. aizawa, m., & yang, c. (2010). green credit, green stimulus, green revolution? china’s mobilization of banks for environmental cleanup. the journal of environment & development, 19(2), 119–144. https://doi.org/10.1177/1070496510366486. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 105 www.americanjournal.org bank activist with foreign capital participation in uzbekistan bakayev xurshid mahmudovich +998914111441 x.bakaev@mail.ru a b s t r a c t k e y w o r d s the banking system is an important component of the market infrastructure. because banks provide the economy with financial resources, foreign economic communication financing, payment implementation and in the provision of various financial services to the population plays an important role. introduction president of our state at the first stage of economic reforms "central bank led and broadband independent commercial and private banks are two-tier creating a banking system, republic departments of large foreign banks in the territory and favorable conditions for the opening of representative offices first-class measures to create" put in the row. implementation of this important task based on the administrative-commandment of the purpose, adapted to the nature of the planned economy two-tier national instead of the banking system initial legal creation of the banking system foundation-on february 15, 1991 " banks and banking the activities act was passed. regulation of money circulation to the central bank of the republic of uzbekistan, commercial organization of banks, they operate the tasks of regulation and control, organization of the payment system were assigned.the country allowed the opening of commercial banks on the basis of jointstock, cooperative and private property, as well as banks with the participation of foreign capital. to the market economy developed by the head of state after the declaration of the republic of uzbekistan as independent market economy based on transition principles two suitable for feature and international andases tiered: the foundation was laid for a banking system consisting of central bank and commercial banks.on september 7, 1991, the national bank of foreign economic activity was formed. on the territory of the countrythis is the first time that international accounts are in the bank through which it began to be implemented, the opportunity arose to concentrate the currency funds of the republic and use them with a clear goal in mind. gallabank, pakhtabank, entrepreneurbank,like and later" asakabank organization of a number of specialized commercial banks banking service to enterprises in different sectors of the economy american journal of business management, economics and banking volume 22 march 2024 p a g e | 106 www.americanjournal.org radically improved the performance. while the establishment of banks with the participation of foreign capital a new stage in the independent national banking system started. cabinet of ministers of the republic of uzbekistan banking system of july 13, 1994 financial support for development by decision "on measures" commercial banks are subject to five types of taxes released. this financial privilege banks to equip with modern technologies and made it possible to strengthen the material and technical base. as a result, quality in our republic a completely new payment system has been created in terms of meeting international standards,payments began to be made in a few minutes. it is known from world experience that independent the states all had their own separate monetary system. national on the territory of our republic since july 1, 1994 currency-with the introduction of the som into circulation monetary and credit of uzbekistan and, in general, economic full independence even when conducting politics achieved. as the head of our state noted, " the national currency is the national currency of the state's independence is the main character". from the introduction of the national currency into circulation then the process of economic reforms requires a deepening of reforms in the banking system did. "central republic of uzbekistan on bank " (december 21, 1995) and "on banks and banking" (new ed., april 25, 1996) of the laws. acceptance of the central bank and commerce legal status of banks, functions experience and national mentality of foreign countries advanced to the competence and introduced a number of clarifications taking into account. the central bank received the status of a body for regulating monetary relations and controlling the activities of banks. with the creation of universal commercial banks in our country and the creation of foreign capital into the banking system necessary legal for more active involvement foundations were laid. development of private banks in our country by our government in 1997 for which a number of benefits are provided, including the share of individuals in the charter fund is not less than 50 percent private from the time of the establishment of commercial banks income tax for two years starting as a result of their exemption from payment, the bank penetration of private capital into the system activated, which, in turn, banking services led to increased competition in the market. currency of the central bank of uzbekistan policy of stability of the national exchange rate provision, inflation at an acceptable level to encourage retention and export,the fact that our country is focused on the effective management of gold and foreign exchange reserves has given its positive result. since 2000, the currency policy has become more liberalized and established trade in foreign currencies in the over-the-counter currency market set. authorized banks from their customers free currency funds, demand for it and based on the offer, the free course began to buy on. uzbekistan in 2003 the international currency by accepting obligations under article viii of the articles of agreement of the fund, began to carry out a free conversion of the national currency on international current operas. this includes the use of external funds without attracting, it was achieved by relying on internal resources. this is noticeable in the rapid development of entrepreneurial activity in our country motivated. currently, 29 commercial banks operate in our republic, of which 3 state, 13 joint-stockcommercial,9 are private and 4 are organized in the form of foreign capital participation. there were 9,551 banking institutions in operation and on the basis of mutual interest with the population they cooperate in every possible way. in our country, every 100 thousand adult residents.there are 49.7 american journal of business management, economics and banking volume 22 march 2024 p a g e | 107 www.americanjournal.org banking institutions. international according to research by the monetary fund,uzbekistan occupies a leading position among the cis countries in this indicator. central bank on the regulation and control of the activities of commercial banks,according to the recommendations of the basel committee,the transition to the use of international practice in banks pre-identification of possible problems and the occurrence of risks warning measures before arrival gave the opportunity to see. hence, in our country during the years of independence not a single bank operating in crisis did not occur. financial stability of the banking system depends on its level of capitalization. therefore, our government has always been, especially in the world in the era of the financial crisis, it is special to increase the level of capitalization of banks noticed. the leading commercial banks in our country are people's bank, microkreditbank, agrobank, rural construction bank,500 billion during 2009 to the capitalization of" asakabank", more than rs.that's what led to positive results experts of international financial organizations they also confessed. measures taken over the past decade, banks have achieved more than 9 times their total capital growth. the capital of the banking system today is the adequacy rate was 24.3 percent, giving,this indicator is 3 times higher than established by international standards. financial of the banks of our country stable condition, confidence in them increase in the income of the population population and legal entities that are on the way active bank deposits of loose funds giving the opportunity to attract. of this the proof of the population for the last ten years and deposits of enterprises in banks it can also be seen when the size increases by 30 times. to this, as well as bank deposits fully guaranteed and their first return on demand, income of the population from bank deposits from tax to be released and to be deposited declaration of the origin of funds not being done is also a reason. population deposits in banks of uzbekistan and the volume of deposits of legal entities increase their liquidity level it remains stable. banking system liquidity ratio in recent years 65 above the percentage, the most required are it is more than 2 times the low level. however, most foreign countries the problem of liquidity in their banks, especially,in the context of the global financial crisis, extreme has become an urgent problem. of the banks to maintain its stability, the states allocated funds preferentially from the budget as well as from central banks. but this economy of countries and banking system implemented due to the extreme depth of problems increased activities bring the expected results did not give. on the contrary, public debt increased, to increase the state budget deficit brought and ultimately finance the country negatively affected his system. this is done by gresia,ongoing economic crisis in portugal, ireland, spain and other countries the processes are evident. capitalization of banks of our country the level as well as the growing volume of deposits involved in their lending for the development of the economy giving the opportunity to expand in size.in the last ten years, the volume of loans allocated to the real sector of the economy is 9 times, domestic and the volume of lending from sources is 15 increased by more than equal. in particular, 85.8 percent of loans in the current period, when there is instability in the global financial market the fact that it was given to internal sources made the banks protects against the effects of external risks. modernization of enterprises last year, technological and technical investment loans of rs 5.76 trillion were allocated by commercial banks to the re-equipment targets. in the last five years the volume of american journal of business management, economics and banking volume 22 march 2024 p a g e | 108 www.americanjournal.org such loans increased by 4 times.long in the total credit portfolio of banks and the share of term loans is 76.8 percent organized. such indicators indicate that banks are actively involved in investment processes. in particular, commercial banks.the purchase of a boeing-767-300er to upgrade the air fleet of the uzbek airways mak, ustyurt gas-chemical at the surgil field they are involved in the financing of projects such as the construction of the complex and the peasant potash fertilizer plant. references: 1. president of the republic of uzbekistan 07.09.1991. pf-244."organization of the national bank of foreign economic activity of the republic of uzbekistan decree "on the release". 2. 13.07.1994 of the cabinet of ministers of the republic of uzbekistan. 362.the decision of the republic of uzbekistan"on measures for financial implementation of the development of the banking system". 3. 21.12.1995 of the republic of uzbekistan. law no. 154-i "on the central bank of the republic of uzbekistan". 4. 25.04.1996 of the republic of uzbekistan. law no. 216-i "on banks and banking activities". 5. 24.04.1997. pf-1749 "measures to promote the establishment of private commercial banks decree"on". 6. president of the republic of uzbekistan 05.05.2006. pf-decree no. 3750 "on the establishment of a joint-stock commercial bank" microkreditbank". american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 201 www.americanjournal.org from ancient traditions to modern greatness: the development of the textile industry of uzbekistan yormatov ilmidin toshmatovich candidate of economic sciences, docent, fergana polytechnic institute, fergana, uzbekistan e-mail: ilmidiv.yormatov@mail.ru a b s t r a c k e y w o r d s as one of the largest textile production bases in central asia, uzbekistan has made significant progress in the development and improvement of the textile industry in recent years. after the arrival of new leadership in the country in 2016, the textile industry became one of the main priorities for the development of the economy of uzbekistan. in this article, the main points of the development of the textile industry in the new uzbekistan were considered. industry, export, light industry, textile industry, joint venture, investment, economy, cluster. introduction the textile industry in uzbekistan has a rich and long history dating back several thousand years. uzbekistan is famous for its unique cultural heritage in textile art, which developed due to ancient historical connections and cultural exchanges along the great silk road. we will consider the history of the development of the textile industry in uzbekistan and its importance in modern society [1,2]. the first information about the textile industry in the territory of uzbekistan dates back to the period of the medieval state of khorezm, which covered the territory of modern uzbekistan. during this period, weaving was raised to the level of art, and the craftsmen created unique patterns and decorations on the fabric, which became a unique symbol of the region [3]. methodology today, the textile industry has become one of the most developed sectors in uzbekistan. according to dm mukhamedova, adviser to the chairman of the "uztekstilprom" association, the first silk weaving factory was put into operation in fergana in 1921. in 1924, the "krasnaya zarya" plant started working in tashkent. in 1931, the ferghana textile combine, in 1936, in tashkent, and 1970, the bukhara textile enterprises began to operate. in 1932, the people's commissariat of textile industry was established, and in 1949, it was transformed into the ministry of light industry of the uzbek ssr [4,5,6,7]. during the 1941-45 war, the silk factory where parachute silk was produced in margilon was evacuated from russia. also, the "yulduz" factory in tashkent was exported from russia and specializes in the production of silk for parachutes. in 1967, the "malika" knitting factory was launched in tashkent. production of men's shirts and socks has been launched in kokan, namangan. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 202 www.americanjournal.org in the 19th and 20th centuries, the textile industry of uzbekistan experienced various changes and developments. at this time, the first textile factories and enterprises producing silk, cotton and woollen fabrics were built. textiles have become the main source of income for many residents. after independence in 1991, the textile industry continued to develop. large-scale modernization of equipment and the introduction of new production technologies were carried out [8,9]. currently, these enterprises are operating effectively in all districts of the republic, and these enterprises produce spun yarn, kalava, raw and finished fabrics. knitting and sewing products: the production of clothes and household goods is advanced. the importance of the development of this sector for the republic's economy can be explained, first of all, by the availability of local raw materials (cotton, silk, leather, wool, hemp). at the same time, the textile industry is associated with high labour intensity compared to other industries. this is important in providing employment to the population (especially in rural areas), improving their standard of living, and solving many other social problems. world experience shows that in the case of favourable conditions, the development of the textile industry can be described as vivid. due to the deep processing of raw materials, a high level of added value occurs, as a result of which the amount of income for the population, enterprises and the state increases, as well as high growth rates of exports and a reduction in the volume of imports (ready-made garments), are ensured [10,11,12]. results and discussion as indicated in the concept of development of textile and light industrial enterprises in the period until 2005, in the early 1990s, light industrial enterprises in uzbekistan were mainly equipped with equipment that was physically and mentally obsolete, unable to produce exportable products. and the technological equipment installed in these enterprises, in general, the working conditions did not meet the requirements of the time. less than 10 per cent of the cotton fibre grown in the republic is reprocessed in local industrial enterprises. product export exceeded 7.7 million us dollars [13,14,15]. in general, the republic is considered a cotton raw material base, and there is no attention paid to the development of the finished goods production industry, and the sewing and knitting industry is not developed. despite the political and economic difficulties in the first years of independence, the leadership of the country began to pay special attention to this sector, and thanks to the support of the government, radical changes took place in the sector. decision no. 166 of the cabinet of ministers of the republic of uzbekistan dated april 29, 1996 "on state support measures for local and light industry" establishes a program for technical re-equipment of industrial enterprises and commissioning of new capacities. served as more than 35 investment projects have been implemented in the field, and capital investments worth 152 billion soums, including foreign investments of 644.4 million us dollars, have been absorbed. as a result, in 6 years, the annual processing volume of cotton fibre was increased to 240,000 tons per year, and the total fibre processing volume was increased from 12% to 24%. the volume of product exports increased from 7.7 million us dollars to 733 million dollars, and an additional 32,000 new jobs were created. with the attraction of foreign investment, two large factories in tashkent and toytepa, the joint enterprise "kabul-fargona co", the joint enterprise "chinaz tokimachi", and the joint enterprise "kabul-uzbek co" .” joint venture was established. technical re-equipment works at "oksaroy american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 203 www.americanjournal.org tukimachi ltd" enterprise, "kosansoy tekmen" joint venture, "papfen" jv "namangan textile", "asnam textile" jsc, "kashteks", "gurlen", "anteks" textile complexes done. ", "korakultex" jv, "midatex" jv and others. technical re-equipment works were carried out at "bukhorotex" jsc, "chinabad ptf" jsc, "toshtekstil" jsc, and "yakkabog textile factory" jsc from their funds. the dynamics of investments in light industrial enterprises are determined by the following figures in 1994, the volume of foreign investments in light industrial enterprises amounted to 5.25 million us dollars, in 2001 the growth rate reached 644.4 million us dollars, or in 1994 120 times more investment was made in the last 7 years compared to the volume of foreign investments [12,13,14]. since 1995, 55 different decisions and decrees of the president and the cabinet of ministers have been issued for the development of the light and textile industry in uzbekistan. in recent years, as a result of comprehensive measures for the development of the textile and sewing-knitting industry in our country, as a result of the implementation of comprehensive measures to support the investment and export activities of industry enterprises, 100% of the cotton fibre and 45% of the yarn produced in the republic are being processed. , as well as the annual export potential of the industry exceeded 3.2 billion dollars. since the new leadership came to uzbekistan in 2016, a new era has begun in the development of the country's textile industry. important reforms and measures are being implemented to stimulate the growth and improvement of the textile industry, which is one of the main sectors of the economy of uzbekistan. one of the main directions of development of the textile industry in new uzbekistan is to create a favourable investment environment for attracting both foreign and domestic investments to the industry. in this regard, the uzbek government provides various tax and financial incentives for investors, simplifies registration and licensing procedures, and creates special economic zones and industrial parks. in the following years, several regulatory legal documents were adopted for the further development of this field. let's get acquainted with some of them: in 2017, the textile fund of uzbekistan was established by the decision of the government of the republic of uzbekistan. this fund was established to finance and support the development of the textile industry in our country. it enables the financing of industrial enterprises on preferential terms and supports innovative projects and equipment renewal. the textile fund plays an important role in the development and support of the textile industry in uzbekistan. on june 23, 2017, the law of the republic of uzbekistan "on the priority areas of development of textile and light industry" was adopted. this law defines the strategic priorities for the development of the textile and light industry in our country, as well as support measures, including tax and customs benefits, financial support, and favourable conditions for the development of entrepreneurship in these industries. defines the creation. the law is aimed at encouraging the development and modernization of the textile and light industry in uzbekistan and increasing their contribution to the country's economy. in 2019, the state support program for cotton cultivation was adopted in uzbekistan. this is aimed at developing the raw material base for the textile industry, especially given uzbekistan's specialization in cotton production. the program includes financial support for cotton growers, modernization of production processes and improvement of raw material quality. its purpose is to ensure the use of highquality and cheap raw materials for the textile industry and to create conditions for increasing the competitiveness of the industry. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 204 www.americanjournal.org in 2017, the medium and long-term development program of the textile and light industry was adopted in uzbekistan. in this program, the strategic goals and objectives of the development of the textile and light industry in our country, as well as measures aimed at modernization of equipment in the field, export support, development of human resources and energy efficiency are defined. the program is aimed at the long-term development of the industry and includes a wide range of measures to ensure the sustainable growth and competitiveness of the textile and light industry in uzbekistan. it is also planned to create a favourable investment and business environment in the sector and introduce new technologies and advanced production methods. also, during this period, several state programs for the development of high-tech textile clusters and textile parks were adopted in uzbekistan. some of them include: 1. textile cluster development program this program is aimed at the creation and development of specialized textile clusters where textile industry enterprises with high production capacity are concentrated. the program provides financial support, assistance in the modernization of equipment and production technologies, as well as the exchange of information and experience between enterprises within the cluster. 2. textile park development program – this program aims to create specialized industrial parks for the development of the textile industry. textile parks create favourable conditions for attracting investment, locating enterprises, developing infrastructure, and sharing knowledge and experiences. the program provides financial support, concessions and peripherals to enterprises registered in textile parks. these programs are of strategic importance in the development of the textile industry and serve to create a strong infrastructure, attract investments, develop high-tech production and increase the competitiveness of uzbek textile products in the world market. it was established by the decision of the president of the republic of uzbekistan no. pf-5285 of december 14, 2017. 1,989 enterprises and entrepreneurs are members of the uztoqimachiliksanoat association of textile and sewing industry of uzbekistan, more than 500,000 specialists and employees are employed in production worth 3.9 billion. attracted foreign investments in dollars. also, 134 cotton-textile clusters are operating. the high efficiency of cotton-textile clusters is recognized internationally. currently, the republic of azerbaijan has started to study this experience. at the same time, increasing competition in world markets, thanks to the active support of the government and the implementation of these strategies, the textile industry in uzbekistan is reaching new heights. the export of textile products from the country has increased significantly, which contributes to the growth of the economy and the creation of new jobs. uzbekistan is attracting more and more attention as a reliable partner in the textile industry and is becoming a well-known brand in the international market. conclusions in conclusion, the development of the textile industry in the new uzbekistan after 2016 includes a wide range of measures and strategies, including attracting foreign investment, diversifying production, upgrading equipment, industrial clusters and organization of parks. these efforts serve to make uzbekistan an important participant in the world textile field, to strengthen its position in the market and to the stable growth of the country's economy. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 205 www.americanjournal.org references 1. decree of the president of the republic of uzbekistan, no. pq-4453 dated 16.09.2019 "on measures to promote the further development of light industry and the production of finished products. 2. decree of the president of the republic of uzbekistan 21.01.2022 pf-53 "on measures to promote the production of deep processing and high added value finished products and their export at textile and sewing and knitting enterprises". 3. decree of the president of the republic of uzbekistan, 01.2023. n pf-2 "on measures to support the activities of cotton-textile clusters, radical reform of the textile and sewing-knitting industry, and further increase the potential of the sector". 4. хен, а. э. (2016). новые позиции республики узбекистан на мировом текстильном рынке. молодой ученый, (17), 485-489. 5. аналитическая записка проон, 5 ноября 2010, экономика. 6. наумов ю.в., пугач и.л., юсупов ю.б. (2010). ўзбекистон тўқимачилик саноати: ривожланиш салоҳиятидан қандай фойдаланиш мумкин? таҳлилий тавсиянома. 1(14). 7. ёрматов, и. т. (2023). проблемы инновационной деятельности текстильной промышленности узбекистана. periodica journal of modern philosophy, social sciences and humanities, 14, 37-41. 8. abdullaeva, b. y. (2022). analysis of the experience of the eu countries in increasing the capital of credit institutions. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(11), 72-84. 9. ёрматов, и. т. (2022). роль малых предприятий и частных предпринимателей в развитии экономики узбекистана. barqarorlik va yetakchi tadqiqotlar onlayn ilmiy jurnali, 2(10), 332-339. 10. yormatov, i. t., & tudiboev, s. (2022). kichik biznesning katta imkoniyatlari. prospects of development of science and education, 1(2), 41-46. 11. yormatov, i. t. (2022). роль частного бизнеса в экономике узбекистана. nazariy va amaliy tadqiqotlar xalqaro jurnali, 2(11), 215-220. 12. yormatov, i. t. (2018). концепция построения управления влиянием инновационной деятельности на изменение оргструктуры и производственной структуры предприятия. theoretical & applied science, (9), 256-263. 13. yormatov, i. t., yuldasheva, n. a., & toshpulatov, i. a. (2020). issues of electronic trade development in uzbekistan. isj theoretical & applied science, 12 (92), 211-215. soi. volume04 issue05 pages, 33, 40. 14. yormatov, i. t. (2022). o ‘zbekistonda iste’mol bozorini to ‘ldirishda kichik va xususiy tadbirkorlikni rivojlantirshning o ‘rni. евразийский журнал права, финансов и прикладных наук, 2(11), 99-102. 15. toshmatovich, y. i. (2022). the role of small business in ensuring employment of the population. eurasian journal of history, geography and economics, 14, 31-34. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 1 www.americanjournal.org data mining and its impact on investors’ decisions: a case study in the iraqi financial market using the rbf model amna shehab ahmed al-hassan a assistant lecturer at al-nahrain university, college of business economics. baghdad, iraq. e-mail: amna.shehab@nahrainuniv.edu.iq orcid: https://orcid.org/0000-0002-8885-5390 a b s t r a c t k e y w o r d s the research addressed the definition of data mining technology in general and the rbf model in particular and its importance in analyzing financial market data to facilitate investors’ decisions. the data was collected based on the daily and weekly reports of the iraqi stock market, where the research sought to test a main hypothesis that states that adopting artificial neural network algorithms the radial basis function (rbf) is one of the best data mining algorithms for predicting and analyzing financial indicators for the sample studied. the research reached a set of conclusions, the most important of which is confirming the research hypothesis. based on this, the researcher recommended the necessity of studying other indicators within a longer period to obtain higher accuracy of the results, as the larger the data sample, the more accurate the techniques used in data mining. data mining, artificial neural networks, rbf model. introduction as a result of the development taking place in the financial markets and the huge amount of financial data, the need has emerged to use data mining techniques to search and extract knowledge and provide a database that helps absorb this huge amount of financial information to provide an appropriate environment that helps in the process of making the appropriate decision for investors in the stock markets. deciding to invest in stocks requires providing prior information about market conditions and price trends to rationalize the correct decision to reduce the incidence of error and the occurrence of financial losses. therefore, it required the availability of accurate technology that helps provide the required information to guide investors in estimating future stock prices, especially after the financial crisis caused it. investors in financial markets generally, and emerging markets specifically, are american journal of business management, economics and banking volume 20 january, 2024 p a g e | 2 www.americanjournal.org becoming uneasy about the status of the global economy, as the economies of these countries are still affected by this. in light of this reality, there remains an urgent need to make the greatest possible effort to restore investor confidence as it is a basic pillar for achieving the fair value of security and practicing effective avoidance. for future crises, therefore, it is necessary to find a means and mechanism that helps investors determine the appropriate and best option for investing in the stock market, by analyzing the market and its fluctuations and studying the variables and their impact on its direction to predict what it will be like in the future. based on these data, it was necessary to find a solution through predictive models that can describe the random movement of fluctuations in the returns of financial market indicators and that take into account the linear and nonlinear characteristics of financial time series. this is what prompted us to choose the most prominent data mining techniques, which are functional artificial neural networks. the radial basis function (rbf) is used as a forecasting tool, as it has the appropriate features for forecasting a series of financial indicators and does not require a prior formulation or specific structure. according to the research hypothesis, one of the finest data mining algorithms for predicting and analyzing the data of the general index of the iraqi financial market is to use functional artificial neural network algorithms with a radial basis function. to achieve the research hypothesis, the variables of the general market index were obtained from the daily and weekly reports of the iraqi stock market for the period extending between (2017-2023), where the data was collected from the official website of the iraqi stock exchange, then the database was built using the spss26 program, and then applied rbf model after handling missing data. data mining: data mining is a subfield of data analysis or an analytics approach that looks for patterns in data that are hidden or undiscovered. it is also known as a computerized sorting process to analyze, process, and explore large sets of data. the use of data mining techniques enables organizations to discover hidden patterns and relationships in their data by converting data into information (knowledge) that is used to find solutions to issues, assess how corporate decisions will affect the future, and boost profit margins regarding establishments. (nasser and ahmed, 2017). artificial neural networks: a network of virtual neurons generated by computer programs that mimic the activity of a real neuron, or electronic structures (electronic chips made to mimic the activity of real neurons) that process information using a mathematical model based on the computing communication protocol. the basic processing components of neural networks often carry out basic tasks, but the connections among these components—referred to as neurons—as well as the indications of these components influence the network's overall behavior (gunasekaran and ramaswami, 2011). the initial impetus for the concept of neural networks originated from the way brain neurons function, which is analogous to biological electrical networks in terms of processing input from the brain. donald hebb proposed that the synapse in these networks is crucial to controlling the processing process, which led to consideration of artificial neural networks and connectivity. artificial neural networks are composed of nodes, or neurons or processing units as we previously discussed, connected to form a network of nodes. a set of values known as weights are assigned to each connection between these nodes, and american journal of business management, economics and banking volume 20 january, 2024 p a g e | 3 www.americanjournal.org these weights help determine the values that come out of each processing element depending on the values that enter it. radial basis function (rbf): a functional neural network with radial basis function is one of the artificial neural networks that was first formulated by two scientists (lowe and broomhead) in 1988. there are three layers to it. the network inputs are represented by the first layer, and the hidden layer, which consists of many nonlinear activation units with radial functions, is the second layer. the network outputs are represented by the last layer. the neurons in the output layer contain linear activation functions, as they have a very effective role in the process of classifying data that contains a percentage of noise. the network is also used in linear and non-linear representation models. it has been used in many fields as an approximation function in predicting time series. classification and system monitoring. it is used in functions of temporal arrangement and control of machines. it also has hybrid characteristics compared to other networks, in addition to its ability to adapt and modify through learning to find functions linking inputs and outputs to produce a specific decision according to the problem to be solved. the rbf network relies on two types of education, which are as follows: unsupervised learning: we find this type of learning in the hidden layer, and this method is called self-learning, meaning that the resulting output values are directly as inputs to the output layer. supervised learning: this type is found in the output layer, where the network is trained to reach or obtain the required outputs, and training here is according to the training algorithm. the gaussian activation function is one of the most often utilized activation functions in applications. it is used in the hidden layer and takes the following mathematical form, which illustrates the structure of functional neural networks with a radial basis function. 𝜇𝑖 = 𝑒𝑥𝑝 [− ‖𝑋−𝐶𝑖‖ 2 2𝜎𝑖 2 ], j= 1, 2, k, n where: 𝜇𝑖: represents the output of cell i, where the output values are limited to (1, 0). x: network input vector. ci: the vector of weights accompanying the inputs, which are generated random values. figure (1) rbf network architecture american journal of business management, economics and banking volume 20 january, 2024 p a g e | 4 www.americanjournal.org results and discussion: to carry out the forecasting process using the rbf model, data from the weekly reports of the iraqi stock market were used for the period extending (1/1/2017 to 11/1/2023). the rbf model was applied and the data was processed using the spss26 program. the method of artificial neural networks with radial basis function was applied to predict the indicators of the iraqi financial market according to the following steps: 1. selection of variables the research variables are the time series of general market indicators represented by opening and closing prices and the percentage of change for the period from (1/1/2017 to 11/1/2023) with (310) observations. after identifying the study variables, we processed the missing data using spss according to the replace missing values function. table (1) shows the columns of the processed variables. then, the rbf model for neural networks was applied. the network of artificial neurons is composed of three layers: the values of the opening prices and the percentage change indicate the first layer, or input layer. the second layer (hidden layer): consists of 9 neurons. the closing prices of the iraqi stock market make up the third layer, often known as the output layer. the inputs of the vector-based functional neural network are displayed in table (2). therefore, the network architecture is in the form (1:9:2). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 5 www.americanjournal.org figure (2) depicts the artificial neural network's architecture. 2. data processing after determining the input time series, the data is processed in a nonlinear autoregressive prediction form with an external input. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 6 www.americanjournal.org 3. data analysis stage at this stage, the program analyzes the data in a file and describes it in columns. the program also divides the data into two groups based on training and testing as follows: 70% of the data was used for training, equivalent to (210) views. 30% of the data was used as an independent test on the network, equivalent to (90) observations, to determine the efficiency and accuracy of the model used. table (3) breakdown of the data sample n percent sample training 205 95.8% testing 9 4.2% valid 214 100.0% excluded 87 total 301 the source was prepared by the researcher using the spss program the test data criterion determines how many hidden units are needed; the "optimal" number of hidden units is the one that results in the least amount of inaccuracy in the test data. the final step in building the model is the implementation stage, in which it is ensured that the model is ready for prediction after conducting the training and verification process. this is done by measuring the level of model accuracy performance. after completing the model training process on the studied data sample, the model’s performance is tested, as the model’s accuracy indicates the extent of the neural network model’s ability to estimate the test sample. based on this, the model's performance is evaluated according to the measure of the mean square error, the relative error, and the correlation coefficient to measure the relationship between the real values and the predicted values. as shown in table (4) below: the source was prepared by the researcher using the spss program the relative error is used to calculate significant digits, as the smaller the resulting error value, the better. discuss the results following the network model's implementation, the analysis revealed that the network rejected (87) views that it deemed invalid. of the 214 views that remained, 96% of the sample was utilized to train the model, and 4% of the sample was used for testing. the prototype. in the verification stage, as indicated in table (4) above, the model's performance was estimated using the complete sample. the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 7 www.americanjournal.org rate of fit, or correspondence between the actual and predicted values, is an indicator that quantifies how much the anticipated values tend to have the same values, therefore the researcher used it to assess how well the rbf model could predict the values of the financial market index. the disparity between the numbers and the genuine values is depicted in figure (5). anticipated. the computed match rate attained 75 percent, a high figure that suggests the model's accuracy. in order to verify the accuracy of the model used to analyze the market data under study, the pearson correlation coefficient between the actual data series and the predicted series was also calculated. a correlation value of 99% was reached, indicating the presence of a strong relationship between the predicted time series and the actual value series. adopting functional artificial neural network techniques with a radial basis function is one of the best data mining algorithms to anticipate and evaluate the data of the study, which is supported by the previously supplied information. artificial neural networks have the attractive ability to reduce the error bias factor in visual time series. analyzes of the first neuron network showed that the error coefficient decreased to the level of (0.01), meaning that the accuracy of the predictions reached approximately (99%). the independent variables were also analyzed by measuring their importance, as shown in table (5) below. the degree to which the predicted value of the network model varies for various values of the independent variable is a measure of the independent variable's relevance. normalized significance, which is expressed as percentages, is just the important values divided by the largest importance values. the significance of independent factors is seen in figure 3. table (5) the importance of independent variables importance normalized importance smean(previousclosure) .480 92.2% smean(percentageofchange) .520 100.0% the source was prepared by the researcher using the spss program figure (3) the importance of independent variables american journal of business management, economics and banking volume 20 january, 2024 p a g e | 8 www.americanjournal.org it is clear from figure (4) the extent of convergence between the estimated values of the previous closing price and the actual values, which explains the strength of the degree of correlation in the testing phase. this confirms the accuracy of the model used in the testing and the possibility of using it to predict future price values and also supports the validity of the research hypothesis in that adopting neural network algorithms functional synthetic with radial basis function is one of the best data mining algorithms for predicting and analyzing data for the general index of the iraqi financial market. conclusions the rbf model can be used to predict the values of financial indicators with high accuracy. the results of predicting the value of the market index and its direction for the next trading day can also be relied upon to make important investment decisions and achieve profitable returns with a high degree of confidence. the accuracy of the model is also related to the length of the period of the series american journal of business management, economics and banking volume 20 january, 2024 p a g e | 9 www.americanjournal.org studied. the longer the time series, the more accurate the model used is. increasing the size of the data for the study sample leads to improving the model’s performance. recommendations: the researcher recommended the necessity of studying other indicators within a longer period to obtain higher accuracy of results, as the larger the data sample, the more accurate the techniques used in data mining become. references 1. al-hassan, a,s,a. using the induced response function to measure and analyze the impact of fiscal policy shocks on some macroeconomic variables, international journal of professional business review, vol. 8, n. 5, e01128, 2023, p. 01-19. 2. al-rubaie, q, l, a, ahmed, a, s. measuring and analyzing the repercussions of public debt in financing the general budget deficit for the iraqi economy after 2003 using the (eviews) program, materials today: proceedings, vol. 80, part 3, 2023, pages 3144-3154. 3. dase, r. k.; pawar, d. d. application of artificial neural network for stock market prediction: a review of literature, international journal of machine intelligence, vol. 2, issue 2, 2010, 14-17. 4. desai, j. et al. forecasting of indian stock market index s&p cnx nifty 50 using artificial intelligence, behavioral & experimental finance e-journal, vol. 3, no. 79, 2011. 5. gunasekaran, m.; ramaswami, k. s. evaluation of artificial immune system with artificial neural network for predicting bombay stock exchange trends, journal of computer science, volume 7, issue 7, 2011, 967-972. 6. hamid, s. a.; iqbal, z. using neural networks for forecasting volatility of s&p500 index futures prices, journal of business research 57, 2004, 1116 – 1125. 7. kara, y. et al. predicting the direction of stock price index movement using artificial neural networks and support vector machines: the sample of the istanbul stock exchange, expert systems with applications 38, 2011, 5311–5319. 8. kazem, b. i.; mutlag a. k. optimal brain surgeon pruning of neural network models of manufacturing processes, journal of engineering, n. 3, vol. 11, 2005, 495-508. 9. mehrara, m. et al. using technical analysis with neural network for forecasting stock price index in tehran stock exchange, middle eastern finance and economics, volume 6, issue 6, 2010, 50-61. 10. naeini, m. p. et al. stock market value prediction using neural networks, international conference on computer information systems and industrial management applications (cisim), 2010, 132-136. 11. nasser, s, a, ahmed, a, s. detecting financial fraud using some statistical methods: an applied study in the iraqi stock market, al-mustansiriya science journal, vol. 28, n.1, 2017, pages 176186. 12. sutheebanjard, p.; premchaiswadi, w. stock exchange of thailand index prediction using back propagation neural networks, second international conference on computer and network technology, 2010, 377-380. https://www.sciencedirect.com/journal/materials-today-proceedings/vol/80/part/p3 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 10 www.americanjournal.org 13. aamodt, r. using artificial neural networks to forecast financial time series, master thesis, norwegian university of science and technology, department of computer and information science, 2010, 95 pages. 14. larsen, j. i. predicting stock prices using technical analysis and machine learning, master thesis, norwegian university of science and technology, department of computer and information science, 2010. 15. senol, d. prediction of stock price direction by artificial neural network approach, master thesis, bogazici university, institute for graduate studies in social sciences, 2008. 16. desai, j. et al. forecasting of stock market indices using artificial neural networks. working paper no. cpi/mba/2013/0003, shri chimanbhai patel institutes, ahmadabad, 2013. 17. majumder, m.; hussian, m. a. forecasting of indian stock market index using artificial neural network, working paper, 2010. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 161 www.americanjournal.org initial public offering (ipo) global positioning of shares ergashev javakhir son of bakhodir republic of uzbekistan bank-finance master's academy a b s t r a c t k e y w o r d s this article provides an overview of the global positioning of shares in the context of initial public offering (ipo). an ipo is a process in which a privately held company offers its shares to the public for the first time. the global positioning of shares refers to the strategic factors and decisions associated with determining the availability of the offer and reaching out to investors around the world. in this annotation, we will study how companies approach the global positioning of shares during the ipo period. these include factors such as the selection of international markets for registration of shares, the assessment of demand for investors from different regions, the establishment of a different shareholder base. companies may choose to list their shares on multiple stock exchanges to maximize access to global capital and increase visibility in the international investment landscape. through this, they aim to attract a wide range of investors and increase their marketability. when choosing a global position, various factors such as market conditions, regulatory requirements, investor preferences, strategic goals of the company are also taken into account. an in-depth analysis of these factors will help determine the optimal placement of shares in various global markets. in addition, the global positioning of shares through ipo can increase the company's reputation and trust, as a successful offer can express confidence and competence to investors around the world. ipo, investor, innovative technologies, antiterrorism activities, auction. an ipo is an initial public offering. in ipo, a private company lists its shares on the stock exchange and makes them available for purchase by the general public.. introduction initial public vows (ipos) have become important in the world of finance and investment. companies choose to raise ipos in capital by offering shares to the public and listing them in stock exchanges around the world. this article explores the concept of ipos and their impact on global markets. 1. concept about ipos and share placement: ipo refers to a process in which a privately held company offers its shares to the public for the first time. this allows individuals and institutional investors to buy these shares and become shareholders of the company. the global nature of modern financial markets allows companies to engage in public global positioning of shares during the ipo era. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 162 www.americanjournal.org 2. access and expansion of capital: one of the primary motivations for companies to seek ipo is to raise capital for expansion and growth. by offering shares to a wide range of investors around the world, companies can acquire important financial resources needed for various purposes such as research and development, acquisition, market expansion, and technological advances. this capital injection facilitates business growth, motivates companies to new markets, and allows for emerging opportunities. 3. increase visibility and reliability: making public via ipo increases visibility and confidence for the company. the ipo process typically involves deep proper diligence, market analysis, and regulatory compliance, which instill confidence in potential investors. also, listing on stock exchanges exposes the company to a wider investor base and can attract institutional investors, further increasing its reputation and market positioning. 4. leasing for existing shareholders: the ipo offers exit strategies and liquidity for existing shareholders, including founders, early stage investors, and employees with shares in the company. by selling part of their shares during the ipo period, these partners can monetize their investments and diversify their portfolios. this further encourages entrepreneurship and forms a supportive ecosystem for startups and emerging companies. 5. global market launch and packaging: public global positioning of shares through ipos allows companies to access the global pool of investors. it expands its investor base beyond domestic borders and can garner international recognition. the participation of different investors leads to their experience, perspective and access to global markets, which can negatively affect the company's packaging, strategic partnerships and future growth prospects. conclusion: public global placement of shares through ipos has changed the way companies access capital and expand their operations. these proposals facilitate the growth and diversification of companies while providing liquidity to existing shareholders. in addition, ipos increase visibility, increase confidence, and allow companies to access a wider investor base across global markets. as ipos continue to shape the financial landscape, businesses and investors must carefully assess the likely benefits and risks associated with this important event on a company trip. public initial public offering (ipo) is the process of bringing ebbing damages formally into the basin of domestication in our obmen with the stock. this, along with the restrictive-adjusted prospects on the issuing page, allows shares to have a public khayot, or one instructed biroka to develop the company, as well as to have a peaceha khissa. an ipo in a company is made through the debut of the company's shares in bullshit. this can be special conversations about the phase-out of the company's options for buying or selling shares so that it can agree on shares by having a certain use. in an ipo, the company's shares will have to be guided in stock rings or through the issuing management bodies that are developing investments. at the same time, the biroka company head is in a montage, american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 163 www.americanjournal.org and the shares strengthen the depreciation of the channels of sale of goods by raising workers similar to himself in mana. ipo shareholder rings are instructed to submit company shares to the communist investments that come into the hub, that is, to show the possibility of stock agreement at axoli, to determine whether the resident alibi has operated in accordance with the development management framework, and to meet the taxil development situation at fi. the placer instructs its placers, who have reshaped the ipo process, regarding the movement of the purchase through online platforms or brokers in the company, from limiting the shares to the full, in accordance with the paperwork of the stock purchase process. the reliability of the mass global placement of shares (ipo) allows the masses to attach, sell and purchase shares of the company. during this process, the company's lack of publicity changes with the first offer (initial public offering), in which streaming to the exchange is gladly sold to the public. literature used 1. thomas chemmanur, gang hu, jiekun huang. the role of institutional investors in initial public offerings. // the review of financial studies, november 2010. – p.46; 2. ufuk güçbilmez, tomás ó briain. bidding styles of institutional investors in ipo auctions. // journal of financial markets, 2 june 2020, 100579. – p.21; 3. chui zi ong, rasidah mohd-rashid, kamarun nisham taufil-mohd. do institutional investors drive the ipo valuation? // borsa istanbul review, 19 may 2020; 4. hsin-yi huanga, min-hsien chiang, jia-hui linc, yun lin. fixed-price, auction, and bookbuilding ipos: empirical evidence in taiwan. // finance research letters 22 (2017) 11-19; 5. elmirzayev s.e., boyev b.j. aksiyalarni ommaviy joylashtirish operasiyalarini tashkil etish va o‘tkazish. // “xalqaro moliya va hisob” ilmiy elektron jurnali. № 3, iyun, 2018 yil. – b.8; 6. q.chinqulov. respublikamizda ilk ipo hamda spo: yutuqlar va muammolar. // “xalqaro moliya va hisob” ilmiy elektron jurnali. № 5, oktyabr, 2019 yil. – b.12; 7. https://en.wikipedia.org/wiki/initial_public_offering. https://en.wikipedia.org/wiki/initial_public_offering american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 86 www.americanjournal.org enterprise marketing (on the example of uzbekistan) alikulov samar candidate of economic sciences, associate professor, samarkand branch of tashkent state university of economics uzbekistan a b s t r a c t k e y w o r d s the first manifestations of marketing activity are attributed to the very beginning of the formation and development of commoditymoney relations. information about the first advertisement of the product is found in the countries of ancient civilization in sumer, egypt, in the states of ancient mesopotamia, japan [11]. the theoretical foundations of marketing as an independent science existing at the intersection of economics, sociology and management were laid in the xix century by the american sares mccormick (1809-1884). market, economy, development, marketing division, enterprise. the experience of corporate governance of countries proves that in order to compete and enter world markets, first of all, gradual economic reform, restructuring and deepening diversification, and the creation of new enterprises based on high technologies are necessary. in modern conditions, the main goal of any corporation is sustainable development and the formation of long-term values. the company is faced with the question of how to develop a strategy in order to develop steadily and dynamically in a constantly changing market. effective growth strategies and structural transformations allow companies to optimally adapt to the new conditions of the modern market. corporate governance is known as the system that is used to control and manage a company. at the company level, it seeks to distribute responsibilities and powers among shareholders, directors and management. corporate governance is _ _ at the same time a control and reporting system, as well as the management process itself with the help of a certain set of rules and procedures . in particular, this is related to the actual behavior of corporations, the interaction between corporations and members of stakeholders. another category definitions relate to the legal framework. to be more precise, it is more about the regulatory framework under which firms operate. it can be stated that the first category of definitions related to corporate governance is more applicable to cases of studying firms or groups of firms that operate in a particular country. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 87 www.americanjournal.org sustainability is the basis for creating long-term company growth through the creation of long-term values produced in companies. business responsibility based on sustainable development is a key principle of the world-class company's strategy. sustainable development also means that companies act responsibly to achieve economic, environmental and social progress and innovation for the benefit of future generations. this target setting becomes necessary when developing a global strategy and developing a transnational corporation to achieve a leadership position in the market. the main priorities of the corporation's strategy are modern global trends and social responsibility to society. currently, transnational corporations identify a number of global trends that have the greatest impact on changes in strategy and enhance the role of corporations in the socio-economic development of society. these trends are digitalization , globalization, urbanization, climate and demographic changes. undoubtedly, one of the main trends is the digitalization of all areas of activity. already by 2020, the digital data array in the world will reach 44 zbytes . the introduction of virtual production and the use of automation are changing the technological order of society and allow reaching a new level in the management of the value chain, relationships with customers and suppliers, building a global communications infrastructure, effective industrial communication and security, as well as in company value management. in addition, the success and competitiveness of an organization directly depends on the timely implementation of new technological solutions for product life cycle management. globalization is an important factor in increasing the volume of international trade and the formation of close cooperation in the process of data management throughout the value chain. for example, from 2005 to 2014, the volume of international trade almost doubled. the current conditions open up opportunities for companies to develop industrial production and introduce technologies in strategically important sectors of the economy. researchers predict that by 2050, 70% of the world's population will live in cities. in connection with the strengthening of the process of urbanization in modern society, the use of smart technologies in city management is more actively carried out to create a comfortable living environment and improve living standards. in this regard, the development of urban infrastructure is an important task, the solution of which depends on unlocking the potential of cities and attracting investment. it is transnational corporations that, predicting and taking into account this process, implement smart solutions that lead to high social responsibility to society. climate change is of great importance for the company's strategy. following current environmental standards, transnational corporations are changing production towards the use of "green" technologies. demographic changes are also an important trend in modern society. the population change forecast assumes growth from 7.3 billion people. in 2015 to 9.6 billion in 2050. maintaining a low level of unemployment and improving the quality of human resources becomes important for the country's economy. transnational corporations are an attractive employer that influences the development of competencies and allows the training of highly qualified specialists to ensure a high level of employment. transnational corporations clearly predict changes in the external environment and evaluate its impact on changing processes in the organization to improve performance and quickly transform the internal environment of the company. effective structural transformations in companies are built from the change management process model. at the same time, it is important to evaluate the effect of these changes in the strategy and organizational activities of companies. a properly developed strategy that american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 88 www.americanjournal.org quickly responds to market changes makes it possible to make a significant contribution to the development of progressive and innovative activities of society. today it is necessary to combine the business interests of the company with the program for the development of the country and its key sectors of the economy, with the interests of the population and the priorities set by the state. to determine the real contribution of transnational companies to the modernization and development of the economy and society, it is necessary to develop a methodology for evaluating performance. a number of corporations develop their own parameters for assessing the contribution to the development of society and innovation, depending on the field of activity. in these processes, several main directions are distinguished, corresponding to the most significant aspects of the country's socio-economic development. 1. development of the economy and industry . in addition to a direct contribution to gdp, national corporations provide advanced technologies and develop their own local production of high-tech equipment. 2. localization of production . efficient development of a network of local suppliers and an increase in the share of russian components in the innovative and high-tech products of the corporation allows us to adapt modern technologies to the standards and needs of the customer, providing them with reliable technical support and service at our own production base. 3. development of human capital . companies create the necessary conditions for self-realization of employees, unlocking their professional potential, as well as increasing labor productivity and new competencies. 4. development of innovations. corporations, through implementation in strategic areas, play a significant role in the digitalization and implementation of innovations in the industry, which contributes to increased efficiency and business optimization. 5. improving the quality of life . transnational corporations make a significant contribution to the improvement of the urban environment, introducing their environmentally friendly , resource-saving and energy efficient developments in various infrastructure projects. high social responsibility is also facilitated by the implementation of sponsorship projects and extensive charitable activities. 6. support for transformations . the development and implementation of new technological processes has an impact on the change in economic processes in the country, creating the preconditions for establishing new standards for responsible business conduct. thus, the analysis of these priority areas makes it possible to determine the vector of the company's further development, taking into account the current socio-economic priorities of the country. companies have a lot of work to do to improve the level of corporate governance. those who manage to achieve success in this area will be able to increase their efficiency and investment attractiveness, reduce the cost of attracting financial resources, and as a result, gain a serious competitive advantage references 1. baymanova l.a. principles of effective corporate governance // modern science-intensive technologies. 2014. no. 7-1. p. 16-17; american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 89 www.americanjournal.org 2. khrabrova i.a. corporate governance: issues of integration / i.a. khrabrova. m.: science and technology, 2000. 198 p. 3. corporate governance: history and practice [electronic resource american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 144 www.americanjournal.org the state of development of textile industry enterprises in uzbekistan gulnozakhon muydinova doctoral student, department of management, fergana polytechnic institute, fergana, uzbekistan a b s t r a c t k e y w o r d s light industry, being a strategic sector not only for the economy of uzbekistan, but also for all countries of the world, provides a high level of employment, helps strengthen the economic and industrial potential and international prestige of our country. light industry is developing every year. the introduction of new production technologies, the use of highperformance, modern equipment and at the same time effective management ensure high labor productivity and an increase in industrial production volumes. the republic, which for many years exported only cotton fiber, today has unlimited opportunities to take a leading position in the global textile market not only as a supplier of cotton fiber, but also as an exporter of textile products, especially finished products. light industry, textile industry, textile products, textile market, export, clothing and knitwear products. introduction: the textile industry is one of the largest industries in the world. increasing demand for textile products requires rapid development of this sector. the main regions supplying textile products to the world market are east asia, south asia, russia, european countries and the usa. china is the leading country in the production of textile products in the world market. reforms undertaken by developing countries such as china, turkey and india to develop the textile industry have led to the rapid growth of the industry [1,2,3,4]. the unique geopolitical position of uzbekistan allows for direct economic dialogue with many countries, mutually beneficial cooperation with the countries of europe and asia. the textile industry occupies one of the most important places in the economy of the republic; it is one of the main industries producing consumer goods such as garments, fabrics, gauze and knitwear, which are the most important element of the market [5,6,7]. importance of the topic light industry refers to industries that usually produce small or light products and need less capital investment than heavy industries. these could include industries such as electronics, household goods, clothing, or food production. in this era of rapid industrialization, understanding the fundamentals and growth trends of various sectors becomes incredibly vital. as per market data forecast, the global light industry market is expected to grow at a cagr of 4.2 percent between 2022 and 2027. this american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 145 www.americanjournal.org glowing parameter not only symbolizes the escalating value of light industries around the world, but it also points towards potential opportunities that might materialize within this time frame. delving into these growth forecasts, therefore, paves the way for a deeper understanding of the market dynamics at play, giving readers a nuanced perspective on the future landscape of the light industry. decree of the president of the republic of uzbekistan №pf-60 of january 28, 2022 "on the new development strategy of uzbekistan for 2022-2026", №pf-53 of january 21, 2022 "deep processing and finished products with high added value in textile and sewing and knitting enterprises decree №pq-5989 dated may 5, 2020 "on measures to promote production and their export" №pq-99 dated january 24, 2022 "on measures that cannot be delayed to support the textile and sewing-knitting industry" "on measures to create an effective system of development of production and expansion of industrial cooperation in the republic", approval of the regulation of the cabinet of ministers of the republic of uzbekistan on february 23, 2021 on the procedure for the formation and use of the funds of the fund for the development of the textile and sewing and knitting industry of the "uzto‘qimaliksanoat" association №93, as well as the implementation of tasks defined in other regulatory legal documents related to the sector, is a clear proof that the development of the textile industry at the country level has become a necessary condition [8-11]. analysis and results the economic and social significance of the effective development of the industry and the textile industry, which is considered the main link in the whole, the high demand and the increase in deep processing raw materials and the increase in the finished product, and the analysis of the state of development of the industry [12-18]. in uzbekistan, under the influence of global changes, the share of textile products in the gross domestic product is steadily increasing. currently, uzbekistan not only has a large and diverse textile industry, but also processes raw materials and supplies competitive finished products to the world market. in 2023, there were 1,989 economic entities operating on a republican scale, specializing in the production of textile products, the share of the textile industry in the gross domestic product of the republic was more than 8%, and the manufacturing industry corresponds to this network at 13.6%. at the same time, 13% of the republic’s industrial workers work there [19-23]. figure 1. dynamics of production of textile and clothing products in the republic of uzbekistan 1 2 3 4 5 6 7 coil 367.1 393.2 427.9 528.6 614.8 789 656.6 gases 284 364.1 533.3 470.4 607.8 590.8 575.9 yarn 197.3 253.1 302.7 332 405.5 407.5 418.1 knitted fabric 50.9 58.9 60.5 54.1 97.3 75.1 99.5 socks 50.2 68 117 126.4 155 219.8 206.3 knitted products 215.1 272.7 319.7 266.1 286 481.3 544.2 0 100 200 300 400 500 600 700 800 900 p r o d u c t i o n d y n a m i c s o f t e x t i l e a n d c l o t h i n g p r o d u c t s i n t h e r e p u b l i c o f u z b e k i s t a n ( 2 0 1 6 2 0 2 2 y e a r s ) american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 146 www.americanjournal.org rich raw material base (cotton, wool, coal, oil, gas, etc.) for the development and supply of all sectors of the textile industry of uzbekistan, as well as sufficient conditions for rapid economic development (natural, climatic, territorial and labor resources). the textile industry of our republic is developing rapidly. if in 1991 7% of the cotton fiber grown in our republic was processed, now 100% of raw cotton is processed by textile industry enterprises. in particular, in the case of the fergana region, as of 2012, raw cotton worth $29.4 million was exported, and by 2022, all raw cotton in the region is processed on the domestic market [24-27]. today, there is a rapid increase in the production of textiles and clothing: in 2016-2022, the nominal value increased by 4.5 times, yarn by 1.8 times, the total amount of fabrics by 2 times, including gauze yarn 2.1. times, knitted fabric 1.9 times, socks 4.1 times, sewing 1.8 times, knitwear 2.5 times.(figure 1.) as a result, the share of the textile industry in the gross domestic product of the republic in 2022 exceeded 9%, and more than 150 enterprises process more than 1 million tons of cotton fiber. a clear confirmation of this is the export of textiles and clothing and knitwear products in the amount of 3 billion 229.2 million us dollars in 2022, the growth rate of which increased by 10.2% compared to the previous year. the share of finished products in exports amounted to 41.5 percent. this represents an increase of 44 percent compared to 2021. an important factor in achieving such a positive result was the increase in the number of exporting enterprises by 96 to 1503 [28-31]. in the strategy for the development of the textile industry of uzbekistan for 2019-2030, by 2025, 100% of cotton raw materials grown in the country will be processed, and the priority areas are to increase production volumes by 4.3 times. today, 45 percent of the cotton fiber and yarn produced in the republic is processed, and the industry’s annual export potential has exceeded $3.2 billion. in 2022, uzbekistan exported textile products worth us$3,178.0 million, accounting for 16.5% of total exports and an increase of 8.6% compared to the previous year. of this, textile yarn, fabrics, readymade garments and similar products were exported worth us$ 2,227.5 million, which can be considered as a growth of 99.3% compared to 2021. since the beginning of the year, 552 types of textile products have been exported to 73 countries. among the exported textile products, the main share was occupied by cotton yarn (44.4%), finished knitwear and sewing clothing (29.2%). the largest share of exported textile products fell to the russian federation (usd 1,264.9 million 39.8%) and turkey (usd 519.1 million 16.3%). figure 2. dynamics of textile products export of uzbekistan across the countries 1,264.90 519.1 513.4 274 80 78.3 71.9 61.1 45 38.5 38.1 28.7 20.3 19.6 125.2 russia kyrgyzstan iron tajikistan belarus ukraine azerbaijan other countries 2022 year american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 147 www.americanjournal.org in total, the industry's enterprises carry out export deliveries to more than 55 countries around the world. the number of exporting enterprises amounted to more than 780, 120 new enterprises were involved in export activities. conclusion increasing competition in world markets, the development of technology and the reduction of production costs by foreign manufacturers require the development of additional measures for the development of light industry. in the following years, one of the most important tasks of today is to organize textile and sewing-knitting complexes in the republic, to produce finished products with high added value, to expand the volume of products that are in high demand in domestic and foreign markets. it is necessary to ensure the rapid and stable development of light industry, diversify and expand the production of textile products with high added value, competitive in foreign markets, through deep processing of local raw materials, as well as attract potential foreign investors. references 1. data of the state statistics office of the republic of uzbekistan. https://stat.uz/uz. 2. муйдинова г.к. (2021) сущность и значение развития промышленных предприятий на основе инновационных стратегий. современная наука. xxi век: научный, культурный, ит контекст : сборник статей i международной научно-практической конференции.169-173 стр. 3. ashurov, m., kurpayanidi, k., oripov, d., shakirova, y., & muydinova, g. (2022, may). strategies for improvement and evaluation of the quality management system of uzbekistan manufacturers. in international scientific conference on agricultural machinery industry “interagromash"” (pp. 1562-1570). cham: springer international publishing. 4. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. 5. yuldasheva, n., & xamdamjonov, m. (2022). identification, elimination of shortcomings in the quality of goods and its economic problems. science and innovation, 1(5), 385-388. 6. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. 7. abduvakhidovna, y. n. (2022). directions for the effective use of innovative strategies in the management of industrial enterprises. open access repository, 8(6), 125-129. 8. yuldasheva, n. (2022). features of the process of forming innovative strategy under conditions of modern realities. academic research in modern science, 1(9), 310-312. 9. xusanboyev, s., qodirov, a., baxromov, e., ulmasova, n., & to'xtamboyeva, n. (2021). the effect of the covid-19 pandemema on student behavior and concepts: on the example of institution students in uzbekistan. экономика и социум, (5-1), 550-558. 10. юлдашева, н. (2022). корхоналарда инновацион ривожланиш стратегиясини бошқариш хусусиятлари. экономика и образование, 23(2), 129-135. 11. юлдашева, н. а. (2022). инновационный подходы в управлении бизнесом. in инновации в управлении социально-экономическими системами (icimss-2021) (pp. 296-302). american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 148 www.americanjournal.org 12. ugli, x. s. y. (2022, may). agrotourism as a factor in the development of agrotouristic facilities in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 265-267). 13. юлдашева, н. а., & исраилова, м. в. (2022). нетнографические исследования как современный метод управления продуктом. in инновации в управлении социальноэкономическими системами (icimss-2021) (pp. 313-321). 14. abduvakhidovna, y. n. (2023). factors influencing the implementation of the innovation strategy at industrial enterprises. world bulletin of management and law, 19, 5-11. 15. юлдашева, н. а. (2022). иқтисодий фанларни ўқитишда талабалар мустақил ишининг мазмуни ва ўрни. oriental renaissance: innovative, educational, natural and social sciences, 2(special issue 27), 24-29. 16. ugli, x. s. y. (2022, may). evaluation of the effectiveness of agrotourism development directions in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 268-272). 17. юлдашева, н. а. (2022). научно-теоретические аспекты разработки инновационных стратегий в управлении промышленными предприятиями. бюллетень науки и практики, 8(5), 457-461. 18. yuldasheva, n., & xamdamjonov, m. (2022). mahsulot sifatida nuqsonlarni aniqlash, bartaraf etish va uning iqtisodiy muammolari. science and innovation, 1(a5), 385-388. 19. юлдашева, н. а. (2021). вопросы применения цифровой трансформации. in наука сегодня: задачи и пути их решения (pp. 51-52). 20. хусанбоев, с. е. (2022). перспективные направления развития агротуризма в республике узбекистане. бюллетень науки и практики, 8(5), 476-482. 21. юлдашева, н. а. (2021). меры антикризисного управления на предприятиях. in современная наука. xxi век: научный, культурный, ит контекст (pp. 315-319). 22. юлдашева, н. а. (2021). эффективность использования маркетинговых стратегий. in наука сегодня: фундаментальные и прикладные исследования (pp. 27-28). 23. yuldasheva, n. a. issues of active development of the digital economy. isj theoretical & applied science, 5(97), 375-379. 24. negmatov, s. s., holmurodova, d. k., abed, n. s., negmatova, k. s., boydadaev, m. b., & tulyaganova, v. s. (2020). development of effective compositions of composite wood-plastic board materials based on local raw materials and industrial waste. plasticheskie massy, 1(11-12), 28-32. 25. yuldasheva, n. a. (2021). вопросы активного развития цифровой экономики. theoretical & applied science, (5), 375-379. 26. yuldasheva, n. a., & toshpulatov, i. a. (2020). the importance of government regulatory mechanisms in anti-crisis management. journal of advanced research in dynamical and control systems, 12(7), 738-744. 27. юлдашева, н. а. (2020). инқирозга қарши бошқарувда давлат томонидан тартибга солишнинг асосий йўналишлари. экономика и финансы (узбекистан), (2 (134)), 170-177. 28. yormatov, i. t., yuldasheva, n. a., & toshpulatov, i. a. (2020). issues of electronic trade development in uzbekistan. theoretical & applied science, (12), 211-215. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 149 www.americanjournal.org 29. юлдашева, н. а. (2020). инқирозга қарши давлат бошқаруви асослари. global science and innovations 2020: central asia, 1(3), 119. 30. yuldasheva, n. a. (2021). factors influencing the personnel management system in industrial enterprises. journal of management value & ethics. july-sept, 21. 31. abduvakhidovna, y. n. (2023). development of a mechanism for the formation of an innovative strategy for textile enterprises. european journal of emerging technology and discoveries, 1(2), 37-43. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 146 www.americanjournal.org analyzing the impact of employees' organizational support and happiness in the workplace on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment liqaa mutter atti 1 1 management technical college of basrah, southern technical university\ basrah. liqaa.mutter@stu.edu.iq samir hasan abdulhussein 2 2 technical institute, southern technical university\ basra. samir.ridha@stu.edu.iq a b s t r a c t k e y w o r d s the purpose of this research is to analyze the effect of organizational support of employees and happiness in the work environment on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment. in terms of the nature of the research, the present research is descriptive and in terms of the purpose of the research, it is a part of applied research. statistical population in this research the statistical population in this research is the faculty members of the southern technical university in iraq, whose number was equal to 315 people. in this research, cochran's formula was used to calculate the sample size. the number of samples was equal to 173. the obtained results confirmed all research hypotheses. organizational behavior, organizational commitment, employee support, and citizenship behavior introduction every aspect of human life undergoes a drastic change due to the information revolution that defines organizational competitiveness. innovative workers with creative ideas in problem solving and opportunity manipulation are essential company assets that successfully drive transformation by developing innovation. however, organizations that attempt to accelerate employee innovation as well as organizational behaviors toward specific changes inadvertently push them to create new solutions through innovative thinking and shrewd use of resources.although innovative behavior and citizenship behavior have received much scholarly attention, most past works have focused solely on the effects of specific antecedents (leadership style, management strategy, and adequate resources for mailto:samir.ridha@stu.edu.iq american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 147 www.americanjournal.org skill development and employee productivity) with little emphasis on human cognition and emotions that influence workers' innovation affects them (khan and abbas, 2022). recent studies on employee emotions at work have created a new field of study by emphasizing the importance and importance of emotions, such as happiness, in the field of management. yusai et al., 2020) stated that positive emotions like happiness can be felt when people remember experiences that facilitate or parallel their goals. positive emotions potentially create the following work outcomes: commitment, innovative behavior, citizenship behavior, etc. according to the global model theory, happiness is a key component of mental and objective well-being (wentgodet et al., 2003).subjective well-being is determined by people's self-assessment of life satisfaction and happiness, while objective well-being is influenced by income, education, health, and other material and social resources that improve personal well-being. the popularity of the concept of happiness, which economies and accelerates societies, has led to the publication of the world happiness report by the united nations (un) in 2010 (al-shami et al., 2023) on the other hand, the study of human resource management has become a process to provide solutions for the commercial impact of each company (nadella and rahadi, 2020). one of these solutions is the role of organizational citizenship behavior and the work behavior of innovators. citizenship behavior and innovative behavior are due to the emergence of emotions organizational support is created (vidianingram, 2019) . in such a way that organizational support is able to provide comfort to employees to improve their quality based on the company's values and goals, which are determined for non-discrimination and development opportunities for employees and their work environment (john and giuliana, 2020). when a good perception in when employees are embedded, they will have more commitment (sotanto and setiva, 2018) because, employee commitment occurs when there is alignment between values and goals between individuals and the company (rita et al., 2018).according to the mentioned contents, this study seeks to analyze the impact of organizational support of employees and happiness in the work environment on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment. on the other hand, the study of human resource management has become a trend to provide solutions for the business impact of any company (nadella and rahadi, 2020).one of these solutions is the role of organizational citizenship behavior and innovative work behavior.citizen behavior and innovative behavior are caused by the emergence of emotions, including organizational support(vidyaningram, 2019).in such a way that organizational support is able to provide the comfort of employees to improve their quality based on the values and goals of the company, which are set for non-discrimination and development opportunities for employees and their work environment(john wojoliana, 2020).when a good perception is embedded in employees, they will have more commitment (sutanto and setiva, 2018) because, employee commitment arises when there is an alignment between values and goals between individuals and the company (rita et al., 2018).in view of the above, this study seeks to analyze the impact of employee organizational support and happiness in the workplace on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment.2-conceptual model and research hypotheses 1organizational support affects organizational commitment. 2happiness in the workplace affects organizational commitment. 3organizational commitment has a positive impact on innovative work behavior. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 148 www.americanjournal.org 4organizational commitment has a positive impact on organizational citizenship behavior. 5organizational commitment mediates the relationship between organizational support and innovative work behavior. 6organizational commitment mediates the relationship between organizational support and citizenship behavior. 7organizational commitment mediates the relationship between happiness in the work environment and innovative work behavior. 8organizational commitment mediates the relationship between happiness in the work environment and citizenship behavior figure (1) conceptual model of research 3research method considering that the purpose of this research is to analyze the effect of organizational support of employees and happiness in the workplace on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment, therefore, the current research is descriptive in terms of the nature of the research and since the results of the research for other service sectors it can be used in terms of the purpose of the research, it is a part of applied research. this research is descriptive-survey based on the fact that it describes a situation or a series of conditions by using the field method (questionnaire). the statistical population in this research is the faculty members of the southern technical university in iraq, whose number was equal to 315 people. in this research, cochran's formula was used to calculate the sample size. the number of samples was equal to 173.in this research, in order to compile the theoretical foundations and literature of the research, the library method including the use of books, magazines, articles and master's and doctoral theses has been used and to collect the necessary data for testing the hypotheses from the field method and to collect the data. a questionnaire was used. the questionnaire includes two demographic sections and main questions. demographic questions or general questions include gender and history. in the main questions section, the respondents are asked to express their opinion from very little to very much in the answer letter which is arranged as a likert scale. table (1) shows the likert scale and research variables, along with the dimensions and distribution of the questions related to each organizational support of employees organizational citizenship behavior happiness in the workplace innovative work behavior organizational commitment american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 149 www.americanjournal.org table (1) likert spectrum in this research, due to the standard nature of the questionnaire, its validity was implicitly confirmed. the convergent validity of the research was checked with the help of average variance expanded (ave). cronbach's alpha and cr composite reliability were used to measure the reliability of the questionnaire. cronbach (1951) mentioned a high standard of 0.7 for cronbach's alpha. also, frenell and locker (1981) have expressed a high level of 0.5 for ave and a high standard of 0.7 for cr. data analysis tool is pls software and structural equation method. structural equation modeling by pls method is evaluated and interpreted in two stages.these stages include measurement model test and structural model test, in each of these stages indicators are reported; below is an explanation of each of these steps: 1-measurement model test: the measurement model test includes the check of convergent validity (at the level of factors and at the level of indicators or questions) as well as the check of auditory validity or validity. it is diagnostic (at the level of agents and at the level of reagents). 2evaluation of the structural model to investigate the relationship between the variables of the construct: after the test of the external model, the internal model that shows the relationship between the construct variables of the research and the structural equation of the structural equation model must be presented. by using the internal model, research hypotheses can be examined. • types of mediating influence three decades ago, baron and kenny (1986) presented an approach to mediation analysis that is still routinely used by many researchers. however, more recent research points to conceptual and methodological problems with baron and kenny's (1986) approach (e.g., hayes, 2013). in this regard, our description is based on zhao et al.'s (2010) synthesis of previous research on mediation analysis and relevant directions for future research. the authors identify two types of disintermediation: • no mediation, only direct: the direct effect is significant, but the indirect effect is not. • no mediation without effect: direct and indirect effects are not significant. in addition, they identify three types of mediation: • complementary mediation: the indirect effect and the direct effect are both significant and in the same direction. • competitive mediation: the indirect effect and the direct effect are both significant and in the opposite direction. • only indirect mediation: the indirect effect is significant but the direct effect is not in this sense, zhao et al.'s (2010) procedure is consistent with baron and kenny's (1986) concept of partial mediation and full mediation. in fact, if the direct effect is not significant, we are facing the situation of only indirect mediation, but if in addition to the indirect effect, the direct effect is significant, we can distinguish complementary and competitive mediation: in complementary mediation, the direct effect and the indirect effect are in the same direction. in selective option very much more medium low more low score 5 4 3 2 1 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 150 www.americanjournal.org other words, the product of the direct effect and the indirect effect is positive. in competitive mediation, the product of direct effect and indirect effect is negative. competing mediation supports the hypothesized mediating effect, but also suggests that another mediator may be present whose sign of the indirect effect is the same as the direct effect. it is important to note that in competitive mediation, the mediating construct acts as a suppressor variable, which significantly reduces the total effect of the first variable on the third. the analysis process is as follows: figure (2) mediation analysis process (hayer et al., 2021) 4-data analysis 4-1-demographic questions among the sample people, 14% were women and 86% were men. 21% had less than 10 years of work experience. 59% had work experience between 11 and 15 and 20% more than 15 years. 4-2inferential part 1-testing the measurement model 1-1convergent validity at the level of the indicators: to check the validity of each of the observed variables or items, the factor load of each observed variable must be more than 0.4 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 151 www.americanjournal.org figure (3) the result of factor loadings considering that the factor loadings of the questions related to the variables are above 0.4, it can be concluded that the items measure the data well. 1-2convergent validity at the level of hidden factors or variables using the mean of extracted variance ave: fresnel and locker (1981) recommend ave values of 0.5 and more, and this means that the desired structure explains 50% or more of the variance of its items. table (2) shows the results of examining the average variance extracted for each of the structures. table (2) investigation of convergent validity at the level of factors using extracted from the average variance average variance extracted (ave) organizational support of employees 0.632 organizational commitment 0.579 organizational citizenship behavior 0.640 innovative work behavior 0.548 happiness in the workplace 0.514 convergent validity (at the factor level) in all variables is more than 0.5, which indicates the appropriate validity of the measurement tool. cronbach's alpha and composite reliability criteria are also used to check the measurement models, american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 152 www.americanjournal.org and the results can be seen in the following table: table (3) results related to cronbach's alpha, composite reliability cronbach's alpha composite reliability organizational support of employees 0.883 0.911 organizational commitment 0.854 0.891 organizational citizenship behavior 0.778 0.839 innovative work behavior 0.827 0.876 happiness in the workplace 0.76 0.84 the results related to cronbach's alpha and composite reliability are higher than 0.7 and can be confirmed. 2to check the auditor's validity or diagnostic validity, chin (1998) recommends two criteria: 2-1assessor validity or diagnostic validity at the level of items: the items or indicators of a construct should have the highest factor load on the construct have their own; it means to have the least sectional load on other structures. giffen and ashtrab (2005) suggest that the factor load of each item on its related construct should be at least 0.1 more than the factor load of the same item on other constructs. table (4) auditor validity or diagnostic validity at the level of items organizational support of employees organizational commitment organizational citizenship behavior innovative work behavior happiness in the workplace v1_1 0.798 0.78 0.778 0.782 0.627 v1_2 0.824 0.804 0.768 0.802 0.644 v1_3 0.791 0.761 0.691 0.767 0.655 v1_4 0.727 0.704 0.666 0.656 0.59 v1_5 0.861 0.801 0.794 0.78 0.679 v1_6 0.76 0.649 0.686 0.61 0.452 v2_1 0.522 0.624 0.578 0.55 0.772 v2_2 0.565 0.614 0.57 0.602 0.773 v2_3 0.617 0.645 0.6 0.605 0.756 v2_4 0.524 0.58 0.541 0.461 0.635 v2_5 0.526 0.558 0.513 0.498 0.633 v3_1 0.85 0.838 0.844 0.853 0.654 v3_2 0.721 0.711 0.752 0.82 0.609 v3_3 0.475 0.406 0.404 0.559 0.409 v3_4 0.831 0.818 0.759 0.847 0.697 v3_5 0.464 0.451 0.522 0.544 0.414 v3_6 0.687 0.654 0.717 0.749 0.529 v4_1 0.628 0.701 0.74 0.614 0.618 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 153 www.americanjournal.org v4_2 0.691 0.703 0.756 0.675 0.506 v4_3 0.609 0.626 0.634 0.609 0.561 v4_4 0.46 0.457 0.492 0.42 0.415 v4_5 0.595 0.548 0.658 0.606 0.409 v4_6 0.545 0.545 0.641 0.527 0.339 v4_7 0.491 0.506 0.64 0.531 0.456 v5_1 0.747 0.821 0.734 0.731 0.66 v5_2 0.704 0.786 0.78 0.697 0.673 v5_3 0.591 0.776 0.721 0.614 0.666 v5_4 0.667 0.739 0.598 0.627 0.531 v5_5 0.694 0.714 0.628 0.612 0.641 v5_6 0.714 0.723 0.647 0.62 0.68 considering that the items or indicators related to each construct have the highest factor load on their construct (at least 0.4) and the least cross-sectional load on other constructs (at most 0.4), it can be concluded that the validity diagnosis is established at the level of items. 2-2validity or diagnostic validity at the level of factors or divergence of constructs: the square root of ave of a construct must be more than the correlation of that construct with other constructs. this indicates that the correlation of that structure with its indicators is more than its correlation with other structures (syed abbaszadeh et al., 2011). in the following, the validity of the assessment or the diagnostic validity can be seen at the level of the factors or the divergence of the structures: table (5) auditory validity or diagnostic validity at the level of factors or divergence of constructs organizational support of employees organizational commitment organizational citizenship behavior innovative work behavior happiness in the workplace organizational support of employees 0.795 organizational commitment 0.748 0.761 organizational citizenship behavior 0.621 0.528 0.656 innovative work behavior 0.532 0.504 0.524 0.74 happiness in the workplace 0.77 0.645 0.584 0.661 0.717 according to the method of fornell and larker, the elements on the diameter of the matrix must be larger than the values listed in the cells below them in order to realize the divergent validity of the second case (at the level of the structure). according to the above table, it can be seen that in all cases the diagonal elements are larger than the values listed below them, it can be concluded that the validity of the criterion is established at the level of the factors.4-5test of research hypotheses american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 154 www.americanjournal.org in the form of a structural model, hypotheses were tested and the direction of the structural model was evaluated. each path corresponds to one of the assumptions of the model, and the numbers on the arrows show the coefficient of the path. each hypothesis is tested by examining the sign, size, and statistical significance of the path coefficient (beta) between each variable and the dependent variable. the path coefficient shows the direct effect of one structure on another structure. the higher the path coefficient, the greater the predictive effect of the hidden variable compared to the dependent variable. considering the results of the study of the relationships between independent and dependent structures using the relevant coefficient, it is possible to examine the significance of the effects between the research structures. in order to investigate the significance of the path coefficient or beta, the significance of the t-value for each path coefficient should be considered. figure (4) the tested model of the research (regression coefficient and r square) of the hypotheses figure (5) the tested research model (p values) of the hypotheses american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 155 www.americanjournal.org figure (6) the tested research model (t values) of the hypotheses according to the output of the software, the level of significance in all hypotheses was less than 0.05. this means that just as the beta value is not equal to zero in the statistical sample, this value is not equal to zero in the statistical population, and it shows the confirmation of the hypotheses. in the first hypothesis: the beta value equal to 0.728 was obtained, which means that the impact of employees' organizational support on employees' organizational commitment is 72%, which means that 72% of changes in organizational commitment are related to employees' organizational support; to confirm the hypothesis, the value of the t statistic must be greater than 1.96. in the output of the software, this value is equal to 11.02. therefore, it can be said that this hypothesis is confirmed. in the second hypothesis: the beta value is equal to 0.285 were obtained, which means that the effect of happiness in the work environment on organizational commitment is 28%, which means that 28% of changes in organizational commitment are related to happiness in the work environment; to confirm the hypothesis, the value of the t statistic must be greater than 1.96. in the output of the software, this value is equal to 3.75. therefore, it can be said that this hypothesis is confirmed. in the third hypothesis, the beta value equal to 0.122 was obtained, which means that the impact of organizational commitment on innovative work behavior is 12%, which means that 12% of the changes in innovative work behavior are related to organizational commitment. ; to confirm the hypothesis, the value of the t statistic must be greater than 1.96. in the output of the software, this value is equal to 7.15. therefore, it can be said that this hypothesis is confirmed. in the fourth hypothesis, the beta value equal to 0.441 was obtained, which means that the beta value is 0.44 was obtained, which means that the impact of organizational commitment on organizational citizenship behavior is 12%, which means that 44% of changes in citizenship behavior are related to organizational commitment; to confirm the hypothesis, the value of the t statistic must be greater than 1.96. in the output of the software, this value is equal to 4.55. therefore, it can be said that this hypothesis is confirmed. in the fifth hypothesis, the mediating role of organizational commitment in the relationship between organizational commitment and the relationship between organizational support and innovative work american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 156 www.americanjournal.org behavior was examined. to investigate this issue, the indirect effect of organizational support and innovative work behavior should be investigated first. this effect was equal to 0.114, which was significant at the 95% level. therefore, the first condition was confirmed. in the second stage, the direct effect of organizational support and innovative work behavior should be checked, which can be seen in the output, which is equal to 0.75 and is significant. thus, the total effect equals 0.864 is obtained, which was also significant. therefore, the mediating effect of organizational commitment in the relationship between organizational commitment and the relationship between organizational support and innovative work behavior is confirmed, and because a significant direct effect was obtained, it can be said that this effect is partial. in the sixth hypothesis, the mediating role of organizational commitment in the relationship between organizational commitment, the relationship between organizational support and citizenship behavior was investigated. to investigate this issue, the indirect effect of organizational support and innovative work behavior should be investigated first. this effect was equal to 0.122, which was significant at the 95% level. therefore, the first condition was confirmed. in the second step, the direct impact of organizational support and citizenship behavior should be checked, which can be seen in the output, which is equal to 0.477 and is also significant. in this way, the total impact is equal to 0.599, which was also significant. therefore, the mediating effect of organizational commitment in the relationship between organizational support and citizenship behavior is confirmed, and because a significant direct effect was obtained, it can be said that this effect is partial. in the seventh hypothesis, the mediating role of organizational commitment in the relationship between happiness in the work environment and innovative work behavior were investigated. to investigate this issue, the indirect effect of organizational support and innovative work behavior should be investigated first. this effect was equal to 0.130, which was significant at the 95% level. therefore, the first condition was confirmed. in the second step, the direct effect of happiness in the work environment and innovative work behavior should be checked, which can be seen in the output, which is equal to 0.456 and is also significant. in this way, the total effect is equal to 0.586, which was also significant. therefore, the mediating effect of organizational commitment in the relationship between happiness in the work environment and innovative work behavior is confirmed, and because a significant direct effect was obtained, it can be said that this effect is partial. in the eighth hypothesis, the mediating role of organizational commitment in the relationship between happiness in the work environment and citizenship behavior was investigated. to investigate this issue, the indirect effect of happiness in the work environment and citizenship behavior should be investigated first. this effect was equal to 0.110, which was significant at the 95% level. therefore, the first condition was confirmed. in the second step, the direct effect of happiness in the work environment and citizenship behavior should be checked, which can be seen in the output, which is equal to 0.587 and is also significant. in this way, the total effect is equal to 0.697, which was also significant. therefore, the mediating effect of organizational commitment in the relationship between happiness in the work environment and citizenship behavior is confirmed, and because a significant direct effect was obtained, it can be said that this effect is partial.5result the purpose of this research was to analyze the effect of organizational support of employees and happiness in the work environment on innovative work behavior and organizational citizenship behavior: the mediating role of organizational commitment. in terms of the nature of the research, the present research was descriptive and in terms of the purpose of the research, it was a part of applied american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 157 www.americanjournal.org research. the statistical population in this research the statistical population in this research is the employees of the southern technical university in iraq, whose number was equal to 315 people. in this research, cochran's formula was used to calculate the sample size. the number of samples was equal to 173. the results confirmed all research hypotheses. the results of this research are consistent with the results of the studies of al-shami et al. (2023) and sumarjo and supriadi (2023). companies need to develop a good system in the application of human resource management, a system that takes into account the innovative behavior and citizenship behavior of employees. in this regard, considering the role of organizational support and the feeling of happiness, followed by organizational commitment, has an effect on achieving such a system. despite much research on the effects of happiness at both individual and organizational levels, most studies have emphasized their impact on employee performance, retention, or organizational performance. the current work is a pioneer in examining the relationship between happiness and innovative behavior and citizenship behavior, and this behavior in organizations. the result of the research extended the theory with empirical evidence on how happiness and organizational support significantly influence innovative work behavior and citizenship behavior of employees through positive emotions and psychological resources. these findings also model theory. jahani extended vandegut, merrick, and andersen (2003) with an understanding of how happiness in the workplace brings about positive individual and organizational outcomes. second, this study contributed to social exchange theory with new evidence of the mediating effect of organizational commitment on the relationship between happiness and innovative behavior and citizenship behavior. notably, professors who are happy at work tend to engage in innovative behavior, such as exploring unique teaching methods or development of new research ideas. therefore, the mediating effect of organizational commitment emphasized the central role of positive work environment in facilitating innovation in universities. this area of study is important to inform organizations about the most effective strategies to encourage employee creativity and innovation and to emphasize the importance of prioritizing employee happiness and support to facilitate innovation and the right behaviors in the workplace. finally, the current work proposes a model that shows that organizational happiness and support influence innovative work behavior and citizenship behavior through the mediating effect of organizational culture, which future researchers can address. references 1. jang, j., & juliana. (2020). pengaruh persepsi dukungan organisasi dan kepuasan kerja terhadap komitmen kerja dan organizational citizenship behavior generasi milenial di industri pendidikan. jurnal ilmiah manajemen, ekonomi, dan akuntansi, 4(1), 141–160. 2. khan, s. m., & abbas, j. (2022). mindfulness and happiness and their impact on employee creative performance: mediating role of creative process engagement. thinking skills and creativity, 44, 101027. 3. nadella, n., & rahadi, d. r. (2020). pengembangan kompe-tensi di masa pandemi covid 19. inobis: jurnal inovasi bisnis dan manajemen indonesia, 4(1), 72–83. 4. rita, m., randa payangan, o., rante, y., tuhumena, r., & erari, a. (2018). moderating effect of organizational citizen-ship behavior on the effect of organizational commitment, american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 158 www.americanjournal.org transformational leadership and work motivation on employ-ee performance. international journal of law and manage-ment, 60(4), 953–964. 5. sumardjo, m., & supriadi, y. n. (2023). perceived organizational commitment mediates the effect of perceived organizational support and organizational culture on organizational citizenship behavior. calitatea, 24(192), 376-384. 6. sumardjo, m., & supriadi, y. n. (2023). perceived organizational commitment mediates the effect of perceived organizational support and organizational culture on organizational citizenship behavior. calitatea, 24(192), 376-384. 7. sutanto, m., & setiawan, r. (2018). pengaruh perceived or-ganizational support (pos) terhadap organizational citizen-ship behavior (ocb) dengan organizational trust sebagai variabel intervening di hypermart royal plaza surabaya. agora, 6(1), 1–10. 8. usai, a., orlando, b., & mazzoleni, a. (2020). happiness as a driver of entrepreneurial initiative and innovation capital. journal of intellectual capital, 21(6), 1229-1255. 9. ventegodt, s., merrick, j., & andersen, n. j. (2003). quality of life theory i. the iqol theory: an integrative theory of the global quality of life concept. the scientific world journal, 3, 10301040. 10. widyaningrum, m. e. (2019). manajemen sumber daya manusia (1st ed.). ubhara manajemen press. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 84 www.americanjournal.org the impact of corporate governance on the quality of external auditing: a study on iraqi commercial banks hasan sahab mutar college of administrative and financial sciences university of imam jafar sadiq|| baghdad || iraq || hasan_sahab@ijsu.edu.iq dorsaf ben aissia higher institute of accounting and business administration || university of manouba ||tunisia || dorsafbenaissiataboubi@gmail.com a b s t r a c t k e y w o r d s this paper examines the importance of shedding light on the extent to which iraqi commercial banks adhere to the rules and mechanisms of corporate governance. obtaining 168 correct forms after excluding the incorrect answers, and the questionnaire was directed to a sample of shareholders (owners), external auditors and academics. our study shows that the board of directors and audit committees have an important role in supporting the internal auditor to perform his work efficiently and effectively, which is reflected and positively impacted on the quality of the performance of the external auditor, as the external auditors play the role of the assessor of the banking supervisory system, identifying and revealing weaknesses and strengths in it. corporat e-governance, audit exterior, quality. introduction in the eighties of the last century, the concept of corporate governance gained prominence as this period was marked by stock market crashes in many countries around the world, which led to the bankruptcy of some companies; due to policies, and poor governance practices (2011, mulili and wong). corporate governance has drawn attention due to several corporate scandals, these scandals were partly the result of deficiencies in corporate governance practice and poor performance of boards of directors (2015, homayoun and homayoun). in particular, in the midst of several scandals, such as worldcom, lehman brothers, parmalat or enron, the importance of corporate governance has been understood by both developed and developing countries (2016, loredana et al). there was a american journal of business management, economics and banking volume 22 march 2024 p a g e | 85 www.americanjournal.org change in attitude followed by much higher performance expectations from the board of directors and corporate management. additionally, there has been a growing awareness that managers and boards of directors must ensure that companies are operating successfully and in the right direction (2011, mulili and wong). preventing corporate failure was not the only reason why corporate governance ideas were adopted, instead, there has been a growing recognition that better corporate governance is essential to the development and growth of the entire economy (2011, mulili and wong). in 2007 the global economic crisis caused by the sub-prime mortgage crisis in the united states and its negative impact on financial markets and financial industry players globally led to a capital management crisis in most financial institutions, particularly banks (awojobi and amel 2011). this economic crisis began as a financial crisis when banks and financial institutions took huge and reckless risks in search of quick profits and huge rewards. banking supervision is effective if good corporate governance is not implemented. therefore, banking supervisors must have a strong will to ensure that there is effective corporate governance in every banking institution (uwuigbe and fakile 2012). corporate governance is gaining more importance in the banking sector, as banks mobilize public savings, have more diverse stakeholders and rely on public trust during crises, weak and inefficient bank governance has caused banks to collapse as well as the involvement of owners and management in financial scandals in addition to systemic effects on the economy (2011, darmadi). for the purpose of keeping pace with international developments, and strengthening the corporate governance system; to apply the best practices in the banking sector, which prompted the central bank of iraq to establish and apply the principles of corporate governance through the introduction of structural, legislative and supervisory developments aimed at reducing the risks that the banking sector may be exposed to, as investors tend to deal with banks that have sound governance structures whereas, governance aims to determine the nature of the relationship between the bank’s board of directors and the executive management, which leads to the protection of the funds of depositors, shareholders and stakeholders, in addition to focusing on disclosure and transparency. relevant iraqi laws and international standards issued by international institutions and bodies (the guide was revised and updated on 7/11/2018), issued by the central bank of iraq. in this paper, we study whether iraqi banks are committed to applying all provisions and mechanisms of corporate governance and the extent of their contribution to activating the quality of external audit? our paper reminder is organized as follows. section 2 reviews the literature and develops hypotheses. section 3 describes the study population and sample. section 4 details the methodology. section 5 details experimental results and discusses durability tests. section 6 concludes. and hypothesis developmentprevious studies in this section, we review the literary studies that deal with institutional governance mechanisms and their role in activating the quality of external audit, and we present the hypotheses of our study. 1_ governance mechanisms and their impact on disclosure and transparency theoretically, the impact of corporate governance activities on auditor-related judgments through customer acceptance, use of basic tests, clarifying business strategies within companies, activating, and maximizing the role of accountants and auditors in corporate governance style (cohen and hanno, 2000). others (jelal and mbohwa, 2014) find incorporation of corporate governance principles into the fraud reduction code of conduct for south african banks. this study aimed to understand how to create american journal of business management, economics and banking volume 22 march 2024 p a g e | 86 www.americanjournal.org a strong ethical culture and instill good corporate governance principles to reduce levels of internal fraud. in light of these common findings, we suggest verifying this relationship in the iraqi context. we expect a positive impact on the practice of corporate governance activities in banks, and that it will have an important impact on the performance of iraqi commercial banks. in light of the above arguments, we propose the following hypothesis. h1 there is a positive relationship in the commitment of banks to the regulatory procedures for governance and their achievement of the greatest degree of disclosure and transparency. 2_ the board of directors and its impact on the quality of the external audit in theory, klai, n. and omari (2011) sees the measurement of corporate governance by the board of directors (the composition and size of the board of directors, the division of labor between the two functions of the chairman (ceo), the reputation of external auditors, and the concentration of nonfinancial ownership of companies listed on the tunisian stock exchange. the results showed that the members of the board of directors suffer from weak independence, and there is a high degree of concentration of ownership, as well as lack of independence of the board of directors and a high concentration of shares in tunisian companies. while (abi, khalida, 2016), the corporate governance mechanisms of the board of directors, the internal audit, audit and control committees and the external audit quality committees are characterized by the work being interactive and integrated, so that each party accomplishes the tasks and mechanisms expected of it within the framework of good governance, in order to achieve quality financial reporting and quality of external audit services. in light of these common findings, we suggest verifying this relationship in the iraqi context. we expect a positive impact of the board of directors' practice on external auditing, and it will have an important impact on the performance of iraqi commercial banks. in light of the above arguments, we propose the following hypothesis. h2 there is a positive relationship between the application of corporate governance mechanisms by the board of directors and its impact on external audit. 3_ audit committees and their impact on the quality of external audit in theory see. (sukma, p.&bernawati, y, 2019) the effect of the characteristics of the audit committee on the quality of audit. the characteristics are the size of the audit committees, the number of audit committees, the number of audit committee meetings, the composition of the audit committee, and the audit committee experience, while audit quality is measured using audit fees. the results of this study refer to the four audit characteristics, only size and experience significantly affect audit quality, although audit meetings and training do not significantly affect audit quality. (raimo, vitolla, et al, 2021) believes that analyzing the impact of the audit committee's characteristics on the quality of the integrated report (irq) from the point of view of agency theory, as well as to increase the effectiveness of the oversight functions and audit committees, increase the transparency of activities and improve the quality of integrated reports. it was found that it has a slight impact on the financial and accounting experience of the members of the audit committee on the quality of the integrated reports. h3 there is a positive relationship between the application of corporate governance mechanisms by audit committees and their impact on external audit. american journal of business management, economics and banking volume 22 march 2024 p a g e | 87 www.americanjournal.org considering these common findings, we suggest verifying this relationship in the iraqi context. we expect a positive impact on the practice of audit committees and their impact on external audit, and that it will have an important impact on the performance of iraqi commercial banks. in light of the above arguments, we propose the following hypothesis. 3. study population and sample the study community consists of a group of iraqi commercial banks, and the sampling unit was a group of shareholders (owners) in iraqi commercial banks, financial auditors, chartered accountants and academics, the research sample, and regarding how and how the sample size was determined, we distributed questionnaires in an easy way google forms, and sent via e-mail, whatsapp groups, as well as viber groups, where (180) questionnaires were distributed and (168) were retrieved, and they were analyzed using the spss statistical model. 4. methodology first, this section describes the methodology used in our work. where the deductive approach was used to derive hypotheses and the inductive approach was used to test these hypotheses and the second half of the variables where the dependent variable was the quality of the external audit, and the independent variables of corporate governance. then we provide a statistical analysis to measure the extent of the banks' commitment to governance and the extent of their contribution to activating the external audit. study variables: the independent variable: corporate governance many previous studies confirm the impact of corporate governance in ensuring the reliability of financial statements and supporting high audit quality, as the board of directors and its committees, especially the audit committee, play an important role these days in improving corporate governance, and therefore corporate governance variables are represented in our study by the audit committee and the board of directors. administration. dependent variable: quality of external audit external audit is taking a central stage nowadays in the corporate governance system, it bridges the gap between departments and shareholders, and is widely considered an essential control tool. whereas higher audit quality is expected to play a moderating role in corporate governance. view and analyze data after the process of collecting the necessary data for the study by its tool was completed, it was entered into the computer, and it was analyzed using the appropriate statistical methods as follows: adescriptive analysis of the questions of the questionnaire: the frequencies, percentages, the relative importance index, as well as the arithmetic averages, standard deviations, the coefficient of variation and the direction of the research sample have been extracted for all paragraphs of the axes of the questionnaire, and the following tables show the results that were reached from the point of view of the study sample members, and they were as follows: first frequencies, percentages, relative importance index, arithmetic averages, standard deviations, coefficient of variation, and the direction of the research sample for the paragraphs of the first axis american journal of business management, economics and banking volume 22 march 2024 p a g e | 88 www.americanjournal.org (banks' commitment to regulatory procedures for governance and their achievement of the greatest degree of disclosure and transparency). the results were as shown in the tables as follows: table (11) frequencies, percentages, and index of relative importance of the paragraphs of the first axis from the table (11) above, we note that (16%) of the research sample had their opinions that the paragraphs of the first axis agreed strongly, and that the percentage of (38%) of the research sample was their opinions that the paragraphs of the first axis agreed, and that the percentage of (29%) of the sample the research was their opinions that the paragraphs of the first axis were neutral, and that (15%) of the research sample were their opinions that the paragraphs of the first axis did not agree, and that the percentage (2%) of the research sample was their opinions that the paragraphs of the first axis did not agree strongly. we note through the relative importance index that most of the paragraphs of the axis are influential, and the most prominent of the first three paragraphs that have a level of importance more than others are 1the fifth paragraph (banks take into account the adequate and fair disclosure of the financial data needed for investors), as it has the highest relative importance (72.6). t the first axis strongly disagree not agree neutral ok strongly agree the relative importanc e index repetition % repetition % repetition % repetition % repetition % 1 banks disclose important information in a fair, impartial and honest manner . 4 2.4 22 13.1 53 31.5 64 38.1 25 14.9 70.0 2 banks disclose the expected donerisks, and they must be objectively and transparently 2 1.2 27 16.1 44 26.2 66 39.3 29 17.3 71.1 3 banks disclose important information in a timely manner without delay 6 3.6 29 17.3 51 30.4 57 33.9 25 14.9 67.9 4 banks disclose their future financial plans and the financial statements are presented in a way that facilitates the process of financial analysis 3 1.8 24 14.3 45 26.8 76 45.2 20 11.9 70.2 5 banks take into account the adequate and fair disclosure of the financial data necessary for investors 1 0.6 21 12.5 40 23.8 83 49.4 23 13.7 72.6 6 disclosurea culture of support and transparency about the risks and threats they face and enable them to express concerns. 2 1.2 24 14.3 66 39.3 58 34.5 18 10.7 67.8 7 plans related to recruitment , recruitment and development of human resources are made public to all, as they increase the value of justice and transparency 10 6.0 30 17.9 46 27.4 46 27.4 36 21.4 68.1 total 28 2 177 15th 345 29 450 38 176 1 6 70 american journal of business management, economics and banking volume 22 march 2024 p a g e | 89 www.americanjournal.org 2the second paragraph (banks disclose the expected risks and it must be done objectively and transparently.) as it has relative importance (71.1). 3fourth paragraph (banks disclose their future financial plans, and the financial statements are presented in a way that facilitates the process of financial analysis.) it has relative importance (70.2). while the paragraph that has the least relative importance among the paragraphs is the sixth paragraph (banks support a culture of disclosure and transparency about the risks and threats they face and enable them to express concerns.) where it has relative importance (67.8) table (12) arithmetic averages, standard deviations, coefficient of variation, and direction of the research sample for the first axis t the first axis arithmetic mean standard deviation variation coefficient research sample direction 1 important information in a fair, honest andbanks disclose truthful manner. 3.50 0.98 27.97 ok 2 banks disclose the expected risks, and they must be done objectively and transparently 3.55 1.00 28.06 ok 3 banks disclose important information in a timely manner without delay 3.39 1.05 30.97 neutral 4 banks disclose their future financial plans and the financial n a way that facilitates the processstatements are presented i of financial analysis 3.51 0.94 26.81 ok 5 fair disclosure ofbanks take into account the adequate and the financial data necessary for investors 3.63 0.89 24.60 ok 6 banks support a culture of disclosure and transparency about the risks and threats they face and enable them to express concerns. 3.3 8 0.90 26.64 neutral 7 related to recruitment, recruitment and developmentplans of human resources are made public to all, as they increase the value of justice and transparency 3.40 1.18 34.71 ok all paragraphs of the first axis 3.48 0.75 21.41 ok the previous table (12) indicates that 1the arithmetic mean of the total paragraphs of the first axis is heading towards (ok) from the point of view of the research sample, where the arithmetic mean was (3.48), the standard deviation (0.75) and the coefficient of difference (21.41). 2where the fifth paragraph (banks take into account adequate and fair disclosure of the financial data needed for investors.) has the largest arithmetic mean (3.63) and standard deviation (0.89), and the direction of the research sample was towards (ok). 3while the sixth paragraph (banks support a culture of disclosure and transparency about the risks and threats they face and enable them to express concerns.) is the lowest arithmetic mean (3.38) and standard deviation (0.9) and the direction of the research sample was towards (neutral). american journal of business management, economics and banking volume 22 march 2024 p a g e | 90 www.americanjournal.org 4the fifth paragraph (banks take into account adequate and fair disclosure of the financial data needed for investors.) had the lowest coefficient of variation (24.6). 5the seventh paragraph (the plans related to recruitment, appointment and development of human resources shall be announced to all, as it increases the value of justice and transparency.) it has the largest coefficient of variation (34.7). second frequencies, percentages, relative importance index, arithmetic averages, standard deviations, coefficient of variation, and the direction of the research sample for the paragraphs of the second axis (the board of directors and external audit quality support). the results were as shown in the tables as follows: table (13) frequencies and percentages of paragraphs of the second axis t second axis strongly disagree not agree neutral ok strongly agree the relative importance index repetition percent repetition percent repetition percent repetition percent repetition percent 8 there are rules and directives that define the role of the chairman of the board of directors and separate his duties from those of the executive director. 1 0.6 4 2.4 30 17.9 100 59.5 33 19.6 79.0 9 the board of directors undertakes to prepare the financial statements in accordance with generally accepted accounting principles. 2 1.2 2 1.2 25 14.9 101 60.1 38 22.6 80.4 10 the board of directors has an important role in existence offocusing on the a code of ethical conduct for the audit office and emphasizing the protection of the institution’s information and ensuring its confidentiality. 2 1.2 3 1.8 27 16.1 99 58.9 37 22.0 79.8 11 the board of directors has an important role in appointing an external , independent and qualified auditor who honestly represents the financial position of the institution . 7 4.2 8 4.8 31 18.5 81 48.2 41 24.4 76.8 12 the board of directors seriously reviews the executive procedures and determines the salaries and remunerations of directors and external auditors 3 1.8 9 5.4 33 19.6 97 57.7 26 15.5 76.0 13 the board of directors ensures the effectiveness of the mechanisms and practices of corporate governance and the limitation of relationships that develop between managers and external auditors. 1 0.6 6 3.6 46 27.4 88 52.4 27 16.1 76.0 14 shareholders’ approval is obtained to change the number of members of the board of directors, as well as they have a role in selecting audit offices. 3 1.8 11 6.5 48 28.6 88 52.4 18 10.7 72.7 total 19 2 43 4 240 20 654 55 220 19 77.2 from table (13) above we note that the percentage (19%) of the research sample was their opinions that the paragraphs of the second axis strongly agreed, and that the proportion (55%) of the research sample was their opinions that the paragraphs of the second axis agreed, and that (20%) of the research sample was american journal of business management, economics and banking volume 22 march 2024 p a g e | 91 www.americanjournal.org their opinions that the paragraphs of the axis the second is neutral, and that (4%) of the research sample had their opinions that the paragraphs of the second axis did not agree, and that (2%) of the research sample had their opinions that the paragraphs of the second axis did not agree strongly. we note through the relative importance index that most of the paragraphs of the second axis are influential and the three most prominent paragraphs that have the most important level are: 1the ninth paragraph (the board of directors undertakes to prepare the financial statements in accordance with generally accepted accounting principles.) it has the highest relative importance (80.4). 2the tenth paragraph (the board of directors has an important role in focusing on the existence of a guide to the ethical behavior of the audit office and emphasizing the protection of the institution's information and ensuring its confidentiality.) where it has relative importance (79.8). 3the eighth paragraph (there are rules and directives that define the role of the chairman of the board of directors and separate his duties from those of the executive director.) where it has relative importance (79). while the paragraph that has the least relative importance among the paragraphs is the fourteenth paragraph (the approval of shareholders is obtained to change the number of members of the board of directors, as well as they have a role in selecting audit offices.) where it has relative importance (72.7) table (14) arithmetic averages, standard deviations, coefficient of variation, and direction of the research sample for the second axis t second axis arithmetic mean standard deviation variation coefficient research sample direction 8 there are rules and directives that define the role of the chairman of the board of directors and separate his duties those of the executive directorfrom . 3.95 0.72 18.33 ok 9 the board of directors undertakes to prepare the financial tingstatements in accordance with generally accepted accoun principles. 4.02 0.73 18.16 ok 10 important role in focusing onthe board of directors has an the existence of a code of ethical conduct for the audit office and emphasizing the protection of the institution’s information and ensuring its confidentiality. 3.99 0.75 18.80 ok 11 important role in appointing anthe board of directors has an external, independent and qualified auditor who honestly represents the financial position of the institution. 3.84 0.99 25.70 ok 12 the board of directors seriously reviews the executive salaries and remunerations ofprocedures and determines the directors and external auditors 3.80 0.83 21.84 ok 13 the board of directors ensures the effectiveness of the mechanisms and practices of corporate governance and the limitation of relationships that develop between managers and external auditors. 3.80 0.77 20.26 ok 14 obtained to change the number ofshareholders’ approval is members of the board of directors, as well as they have a role in selecting audit offices. 3.64 0.83 22.77 ok all paragraphs of the second axis 3.86 0.52 13.53 ok american journal of business management, economics and banking volume 22 march 2024 p a g e | 92 www.americanjournal.org the previous table (14) indicates that 1the previous table (14) indicates that 1the arithmetic mean of the total paragraphs of the second axis is heading towards (ok) from the point of view of the research sample, where the arithmetic mean was (3.86), the standard deviation was (0.52) and the coefficient of difference was (13.53). 2where the ninth paragraph (the board of directors undertakes to prepare the financial statements in accordance with generally accepted accounting principles.) has the largest arithmetic mean (4.02) and standard deviation (0.73) and the direction of the research sample was towards (ok). 3while the fourteenth paragraph (shareholders’ approval is obtained to change the number of members of the board of directors, as well as they have a role in selecting audit offices.) it has the lowest arithmetic mean (3.64) and standard deviation (0.83) and the direction of the research sample towards (ok). 4the ninth paragraph (the board of directors undertakes to prepare the financial statements in accordance with generally accepted accounting principles.) had the lowest coefficient of variation (18.16). 5the eleventh paragraph (the board of directors has an important role in appointing an external, independent and qualified auditor and honestly represents the reality of the financial position of the institution.) it has the largest coefficient of variation (25.7). third frequencies, percentages, relative importance index, arithmetic averages, standard deviations, coefficient of variation, and the direction of the research sample for the paragraphs of the third axis (audit committees and external audit quality support). the results were as shown in the tables as follows: table (15) frequencies and percentages of the third axis paragraphs t the third axis strongly disagree not agree neutral ok strongly agree the relative importance index repetition percent repetition percent repetition percent repetition percent repetition percent 15th the chairman of the audit committee, when relevant , communicates with other members of the audit committee and with the auditor on a regular basis 3 1.8 7 4.2 27 16.1 96 57.1 35 20.8 78.2 16 the audit committee shall with themeet auditor without the presence of management at least once a year 4 2.4 17 10.1 30 17.9 85 50.6 32 19.0 74.8 17 the audit committee is able to allocate employees of the internal auditors to obtain important information about the facility . 4 2.4 12 7.1 30 17.9 90 53.6 32 19.0 76.0 18 selection of external auditors according to the quality control program in the 2 1.2 9 5.4 32 19.0 81 48.2 44 26.2 78.6 american journal of business management, economics and banking volume 22 march 2024 p a g e | 93 www.americanjournal.org from the table (15) above, we note that (25%) of the research sample had their opinions that the paragraphs of the third axis agreed strongly, and that (51%) of the research sample were their opinions that the paragraphs of the third axis were in agreement, and that (16%) of the sample the research was their opinions that the paragraphs of the third axis were neutral, and that the percentage (6%) of the research sample was their opinions that the paragraphs of the third axis did not agree, and that the percentage (2%) of the research sample was their opinions that the paragraphs of the third axis did not agree strongly. we note through the relative importance index that most of the paragraphs of the third axis are influential, and the three most prominent paragraphs that have the most important level are: 1paragraph nineteen (selecting the external auditors according to the professional experience and educational qualifications of the external auditor and his work team.) which has the highest relative importance (82.6). 2paragraph twenty-one (the size and reputation of the audit office are the most important characteristics on the basis of which a distinction is made between the quality of services of audit offices.) it has a relative importance (79). 3the eighteenth paragraph (selection of external auditors according to the quality control program in the auditing office and the degree of its compatibility with performance levels.) it has relative importance (78.6). while the paragraph that has the least relative importance among the paragraphs is the sixteenth paragraph (that the audit committee meets with the auditor without the presence of management at least once a year), where it has relative importance (74.8). audit office and the degree of its compatibility with performance levels. 19 selection of the external auditors according to the professional experience and educational qualifications of the external auditor and his work team 2 1.2 5 3.0 23 13.7 77 45.8 61 36.3 82.6 20 approval of the advisory services prepared by the external audit offices by discussing them and determining their fees to achieve their goal and their impact on the independence of the external audit . 1 0.6 7 4.2 34 20.2 88 52.4 38 22.6 78.5 21 the size and reputation of the audit firm are the most important characteristics on the basis of which the quality of audit firms' services are distinguished. 2 1.2 11 6.5 29 17.3 77 45.8 49 29.2 79.0 total 18 2 68 6 205 1 6 594 51 291 25 78.2 american journal of business management, economics and banking volume 22 march 2024 p a g e | 94 www.americanjournal.org bleta )16( arithmetic averages, standard deviations, coefficient of variation, and direction of the research sample for the second axis t the third axis arithmetic mean standard deviation variation coefficient research sample direction 15th audit committee, when relevantthe chairman of the , communicates with other members of the audit committee and with the auditor on a regular basis 3.91 0.83 21.28 ok 16 the audit committee shall meet with the auditor without the yearpresence of management at least once a 3.74 0.96 25.72 ok 17 the audit committee is able to allocate employees of the internal auditors to obtain important information about the facility. 3.80 0.91 24.03 ok 18 selection of external auditors according to the quality control the audit office and the degree of its compatibility withprogram in performance levels. 3.93 0.88 22.37 ok 19 selection of the external auditors according to the professional l qualifications of the external auditorexperience and educationa and his work team 4.13 0.85 20.46 ok 20 approval of the advisory services prepared by the external audit offices by discussing them and determining their fees to achieve their goal and their impact on the independence of the external audit. 3.92 0.80 20.51 ok 21 size and reputation of the audit firm are the most importantthe characteristics on the basis of which the quality of audit firms ' services are distinguished. 3.95 0.91 23.14 ok all paragraphs of the third axis 3.91 0.61 15.53 ok the previous table (16) indicates that 1the arithmetic mean of the total paragraphs of the third axis is heading towards (ok) from the point of view of the research sample, where the arithmetic mean was (3.91) and the standard deviation was (0.61) and the coefficient of difference (15.53). 2where the nineteenth paragraph (selecting the external auditors according to the professional experience and educational qualifications of the external auditor and his work team) had the largest arithmetic mean (4.13) and a standard deviation (0.85), and the direction of the research sample was towards (ok). 3while the sixteenth paragraph (that the audit committee meets with the auditor without the presence of the administration at least once a year.) has the lowest arithmetic mean (3.74) and a standard deviation (0.96) and the direction of the research sample towards (ok). 4the nineteenth paragraph (selecting the external auditors according to the professional experience and educational qualifications of the external auditor and his work team.) had the lowest coefficient of variation (20.46). 5the sixteenth paragraph (that the audit committee meets with the auditor without the presence of management at least once a year.) had the largest coefficient of variation (25.72). american journal of business management, economics and banking volume 22 march 2024 p a g e | 95 www.americanjournal.org results 1 the majority of respondents to the questions of the first axis related to the commitment of banks to the procedures for governance and their achievement of the greatest degree of disclosure and transparency, as the respondents’ answers were that (16%) of the research sample had their opinions strongly agree, and that (38%) of the research sample were their opinions ok and that (29%) of the research sample had neutral opinions, and that (15%) of the research sample was their opinions, and that (2%) of the research sample had their opinions strongly disagree. we note through the relative importance index that the fifth paragraph (banks take into account the adequate and fair disclosure of the financial data needed for investors), as it has the highest relative importance (72.6). the second paragraph (banks disclose the expected risks and it must be done objectively and transparently.) it has relative importance (71.1). while the paragraph that has the least relative importance among the paragraphs is the sixth paragraph (banks support a culture of disclosure and transparency about the risks and threats they face and enable them to express concerns.) where it has the least relative importance (67.8). 2the majority of respondents to the questions of the second axis of the board of directors and its impact on external audit, where the respondents answered that 19% of the research sample had their opinions strongly agree, and that 55% of the research sample was their opinions agree, and that (20%) of the research sample %) of the research sample were neutral, and (4%) of the research sample disagreed with their opinions, and (2%) of the research sample had strong disagreement. we note through the relative importance index that the ninth paragraph (the board of directors undertakes to prepare the financial statements in accordance with generally accepted accounting principles.) where it has the highest relative importance (80.4). the tenth paragraph (the board of directors has an important role in focusing on the existence of a guide to the ethical conduct of the audit office and emphasizing the protection of the institution's information and ensuring its confidentiality.) where it has a relative importance (79.8). while the paragraph that has the least relative importance among the paragraphs is the fourteenth paragraph (the approval of shareholders is obtained to change the number of members of the board of directors, as well as they have a role in selecting audit offices.) where it has relative importance (72.7) 3the majority of respondents to the questions of the third axis of audit committees and their impact on external audit, where the answers were that (25%) of the research sample had their opinions strongly agree, and that (51%) of the research sample was their opinions agree, and that (16%) ) of the research sample, their opinions were neutral, and that (6%) of the research sample did not agree with their opinions, and that (2%) of the research sample had their opinions strongly disagree. we note through the relative importance index that the nineteenth paragraph (the selection of the external auditors according to the professional experience and scientific qualifications of the external auditor and his work team.) which has the highest relative importance (82.6). paragraph twenty-one (the size and reputation of the audit office are the most important characteristics on the basis of which the quality of services of audit offices is distinguished.) where it has a relative importance (79). american journal of business management, economics and banking volume 22 march 2024 p a g e | 96 www.americanjournal.org while the paragraph that has the least relative importance among the paragraphs is the sixteenth paragraph (that the audit committee meets with the auditor without the presence of management at least once a year), where it has relative importance (74.8). references 1. mulili, b.m. and wong, p. (2011). 'corporate governance practices in developing countries: the case for kenya', international journal of business administration, 2(1), pp. 14-27 . 2. homayoun s. and homayoun s. (2015). 'agency theory and corporate governance', international business management, 9(5), pp. 805-815. https://doi:10.2139/ssrn.1027382. 3. loredana, dr, alexandru , b. and roxana, h. (2016). 'comparative analysis between the traditional model of corporate governance and islamic model', annals of the constantin brâncuşi university of târgu jiu, economy series, 4, pp. 165-170. 4. awojobi, o. and amel, r. (2011). ' analysing risk management in banks: evidence of bank efficiency and macroeconomic impact', journal of money, investment and banking, 22, pp. 147162. 5. uwuigbe, or and fakile, as (2012). 'the effects of board size on financial performance of banks: a study of listed banks in nigeria', international journal of economics and finance, 4(2), pp. 260-267. 6. darmadi, s. (2011). 'corporate governance disclosure in the annual report: an exploratory study on indonesian islamic banks', humanomics , 29(1), pp. 4-23. 7. the role of corporate governance in achieving the quality of externalabi , khalida, 2016, “ a thesis submitted to obtain a ph.d. degree inaudit services a case study of algeria”, commercial sciences, specializing in commercial sciences, faculty of economics, commercial and management sciences, mohamed boudiaf university in msila, algeria, p. 20. 8. cohen & hanno, 2000''consideration of corporate governance and management control philosophy in preplanning and planning judgment, auditing: a journal of practice and theory: 19, (2) fall . 9. jelal, r, and mbohwa, ch, (2014). “a study of management principles incorporating corporate governance and advocating ethics to reduce fraud at a south african bank,” international journal of social, human science and engineering, world academy of science, engineering and technology, vol 8 (5 (. 10. klai, n. and omri , a. (2011): "corporate governance and financial reporting "quality: "the case of tunisian firms" international business research, vol.4 no.1. 11. sukma, p. & bernawati, y (2019). the impact of audit committee characteristics on audit quality. 12. raimo, n. vitolla, f. marrone , a. rubino , m. (2021). do audit committee attributes influence integrated reporting quality? an agency theory viewpoint. wiley online library, vol.30, issue.1, pp.522-534. 13. https://cbi.iq/static/uploads/up/file-154348700420606.pdf https://cbi.iq/static/uploads/up/file-154348700420606.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 132 | p a g e green economy: the economic impact of climate change in central asia mukhitdinova muyassar ziyaviddinovna phd., senior lecturer at banking and finance academy of republic of uzbeistan muyassarmukhitdinova@gmail.com a b s t r a c t k e y w o r d s the paper aims at gaining insight into the economic impact of climate change in central asian countries such as kazakhstan, kyrgyz republic, tajikistan, turkmenistan, and uzbekistan. central asia is highly vulnerable to climate change owing to a set of critical interactions between the region’s socio-economic and environmental contexts. while some of the central asian countries are among the states contributing the least to global greenhouse gas emissions, they are already suffering directly from the effects of climate change. the main aim of the paper was introduction to green economics in central asia, much of the region is located in already difficult climate zones, where global warming exacerbates desertification, water stress, and rising sea levels. this trend entails fundamental economic disruptions, endangers food security, and undermines public health, with ripple effects on poverty and inequality, displacement, and conflict. considering the risks posed by climate change, the central message of this departmental paper is that adapting to climate change by boosting resilience to climate stresses and disasters is a critical priority for the region’s economies. green economy, climat change, global warming, food security, economic growth introduction the history of green economy is a complex and evolving topic. according to the sustainable development knowledge platform, the term green economy was first coined in a pioneering 1989 report for the government of the united kingdom by a group of leading environmental economists, entitled blueprint for a green economy [1]. the report argued that environmental problems could be addressed by incorporating environmental costs and benefits into economic decision-making [2]. however, the concept of green economy has its roots in earlier ideas of sustainable development, ecological economics, and environmental justice. the club of rome published a influential report in 1972 titled limits to growth, which warned of the dangers of exponential growth in population, american journal of business management, economics and banking volume 19 december, 2023 p a g e | 133 www.americanjournal.org consumption, and pollution on a finite planet [2]. the report called for a shift to a more balanced and equitable economic system that respects the natural limits of the environment. since then, many international organizations, governments, civil society groups, and businesses have adopted and promoted the idea of green economy as a way to achieve social, economic, and environmental goals. some examples of green economy initiatives are the unep green economy initiative, the partnership for action on green economy, the green growth knowledge platform, and the un environment inquiry into the design of a sustainable financial system3. these initiatives aim to provide policy guidance, technical assistance, research, and capacity building to help countries transition to greener and more inclusive economic models [3]. the main characteristics of a green economy are that it reduces environmental risks and ecological scarcities, improves human well-being and social equity, values natural capital and ecosystem services, and accounts for the full costs and benefits of environmental impacts. a green economy also supports innovation, efficiency, resilience, and diversity in various sectors such as energy, agriculture, industry, transport, and tourism [3]. a green economy is not a one-size-fits-all solution, but rather a context-specific approach that takes into account the different needs and priorities of different countries and regions. green economics in central asia is a relevant and timely topic, as the region faces multiple challenges and opportunities related to environmental sustainability, economic diversification, and social inclusion. according to the world bank group, central asia is highly vulnerable to natural disasters and climate change impacts, such as droughts, floods, earthquakes, landslides, and melting glaciers. at the same time, the region has a vast potential for renewable energy sources, such as wind, solar, hydro, and geothermal power [4]. moreover, the region has a rich natural and cultural heritage, which can be leveraged for green tourism and rural development [5]. several initiatives and events have been launched or organized to promote green economy development in central asia. for example: the green climate fund and the european bank for reconstruction and development are supporting the green cities facility for central asia, which aims to help cities in kazakhstan, kyrgyz republic, tajikistan, turkmenistan, and uzbekistan to address their most pressing environmental challenges through green investments and policy reforms. the ministry of economy and commerce of kyrgyzstan with its development partners undp, giz, osce, accelerate prosperity and private sector, organized the regional event “green economy forum 2022: green economy development in central asia” to offer a platform for all partners from central asia to discuss, find and apply green solutions in the region. the forbes business energy published an article titled “central asia to green its economies”, which highlighted the efforts of kazakhstan and other countries in the region to adopt new environmental legislation, invest in renewable energy projects, and diversify their economies away from hydrocarbon dependence. these examples show that green economics in central asia is gaining momentum and recognition as a viable and desirable path for the region’s future. however, there are also many challenges and barriers that need to be overcome, such as lack of financing, institutional capacity, public awareness, regional cooperation, and policy coherence. therefore, it is important to continue supporting and facilitating the exchange of knowledge, best practices, and innovative solutions among all stakeholders involved in green economy development in central asia. https://www.unep.org/explore-topics/green-economy/about-green-economy american journal of business management, economics and banking volume 19 december, 2023 p a g e | 134 www.americanjournal.org fig. 1. spatial distribution of (a) the three climatic zones (first letter: b, dry; c, mild temperate; d, snow; e, polar. second letter: f, fully humid; s, dry summer; w, dry winter; w, desert; s, steppe; t, tundra; f, frost. third letter: h, hot arid; k, cold arid; a, hot summer; b, warm summer; c, cool summer), (b) long-term mean annual precipitation, and (c) aridity index over central asia in 19012010. central asia is located in the center of the eurasian continent (35_e56_n, 45_e87_e) and is far from the sea. in this study, ca encompasses five countries: kazakhstan, uzbekistan, kyrgyzstan, turkmenistan, and tajikistan (fig. 1). ca has diverse topography, with mountains, plains, deserts, and valleys. due to various geomorphological and water shortages, ca has a fragile and expansive mountain-oasis-desert environment that is sensitive to dry/wet climate changes. table 1. list of climatic regions referred to in this study abbreviation kӧppen climate classification subregion distribution df temperate continental (dfb) northern kazakhstan (48є-54є n, 61є-86є e) bw dry arid desert (bwk) southwestern kazakhstan, uzbekistan, turkmenistan (35є-48є n, 54є-68є e) ds mediterranean continental climate (dsb) kyrgyzstan and tajikistan (37є-43є n, 68є77є e) figure 1. shows the spatial distribution of the three climatic zones: temperate continental (dfb), dry arid desert (bwk), and mediterranean continental (dsb). the dfb (hereafter referred to as df) zone is located in northeastern kazakhstan. the bwk (hereafter referred to as bw) zone includes parts of southwestern kazakhstan, uzbekistan, and turkmenistan, including the two largest deserts, karaamerican journal of business management, economics and banking volume 19 december, 2023 p a g e | 135 www.americanjournal.org kum and kyzyl-kum. the dsb (hereafter referred to as ds) zone is primarily distributed in western kyrgyzstan and tajikistan. these three climatic zones are affected by different atmospheric circulations. western circulation is the primary water vapor belt supplying abundant moisture to df regions. the indian monsoon influences the bw and ds regions. grasslands, deserts, and mountains are geographically distributed in the df, bw, and ds zones respectively [10]. climate change is one of the most pressing challenges facing the world today. it poses significant risks to human health, food security, biodiversity, and economic development. the impacts of climate change are expected to be unevenly distributed across regions and sectors, with some countries and communities being more vulnerable than others. central asia, a region comprising kazakhstan, kyrgyzstan, tajikistan, turkmenistan, and uzbekistan, is one of the most exposed and sensitive regions to climate change in the world1. the region is characterized by arid and semi-arid landscapes, high mountain ranges, transboundary water resources, and a high dependence on natural resources for economic growth and livelihoods. climate change is projected to increase the frequency and intensity of extreme weather events, such as droughts, floods, heat waves, and landslides, as well as to alter the hydrological cycle and water availability, affecting agriculture, energy, and ecosystems [6]. climate change also poses significant challenges for the region’s development prospects, as it may undermine poverty reduction efforts, exacerbate social inequalities, and constrain economic diversification and competitiveness [6]. in this context, a transition to a green economy, defined as an economy that is low-carbon, resourceefficient, and socially inclusive [6], is imperative for central asia to achieve sustainable development and resilience to climate change. a green economy can provide multiple benefits for the region, such as enhancing environmental sustainability, innovation, and long-term competitiveness; creating new opportunities for economic growth and job creation; reducing greenhouse gas emissions and air pollution; improving natural resource management and circular economy; and supporting social inclusion and cohesion [7]. however, a green economy transition also entails significant challenges and trade-offs, such as addressing the social costs of structural adjustment, ensuring a fair distribution of benefits and burdens across sectors and groups, mobilizing adequate financing and investment, fostering regional cooperation and integration, and strengthening institutional capacity and governance [7]. central asia is a region of high climatic variability and diversity. the region spans from the caspian sea in the west to china in the east, covering an area of about 4 million square kilometres. the region’s climate is influenced by several factors, such as its continental location, topography, altitude, latitude, and atmospheric circulation patterns. the region experiences four distinct seasons: winter (december-february), spring (march-may), summer (june-august), and autumn (septembernovember). the average annual temperature ranges from -5°c in the mountainous areas to 25°c in the lowlands. the average annual precipitation varies from less than 100 mm in the deserts to more than 1000 mm in the mountains. according to historical observations and model simulations2, central asia has experienced significant changes in its climate over the past century. some of the main observed trends are: a warming trend of about 0.3°c per decade since 1901, with higher rates in winter than in summer; a decrease in precipitation of about 10% since 1950s; a reduction in snow cover extent and duration; a retreat of glaciers by about 35% since 1960s; https://www.worldbank.org/en/topic/environment/brief/climate-and-environment-program-in-central-asia https://www.worldbank.org/en/news/opinion/2021/07/01/envisioning-central-asia-s-green-recovery american journal of business management, economics and banking volume 19 december, 2023 p a g e | 136 www.americanjournal.org a rise in sea level by about 10 cm since 1950s; an increase in frequency and intensity of extreme weather events. these observed trends are projected to continue or intensify in the future under different emission scenarios. some of the main projected changes are: a warming trend of about 2-6°c by 2100 relative to 1986-2005 levels; a decrease in precipitation of about 10-30% by 2100 relative to 1986-2005 levels; a further reduction in snow cover extent and duration; a further retreat of glaciers by about 50-90% by 2100 relative to 2010 levels; a rise in sea level by about 30-60 cm by 2100 relative to 1986-2005 levels; an increase in frequency and intensity of extreme weather events. these projected changes will have significant implications for the region’s natural resources, ecosystems, and socio-economic sectors. climate change affects the region’s economy through direct and indirect channels. direct impacts refer to the physical damages and losses caused by climate change-induced hazards, such as floods, droughts, heat waves, and landslides. indirect impacts refer to the changes in productivity, prices, incomes, and welfare caused by the alteration of natural resources, ecosystems, and socio-economic systems due to climate change. the economic impact of climate change can be measured in different ways, such as the cost of adaptation, the cost of residual damages, the value of lost opportunities, or the change in gross domestic product (gdp) or welfare[6]. however, estimating the economic impact of climate change is subject to high uncertainty and complexity, as it depends on several factors, such as the emission scenario, the climate model, the impact model, the valuation method, the discount rate, and the time horizon. therefore, the results of different studies may vary widely and should be interpreted with caution. despite these limitations, several studies have attempted to quantify the economic impact of climate change on central asia using different approaches and methods. the following subsections summarize some of the main findings from these studies for key sectors and groups in the region. agriculture is a vital sector for central asia’s economy and food security. the sector accounts for about 15% of the region’s gdp and employs about 40% of the region’s labour force. the sector is also highly dependent on natural resources, such as land, water, and biodiversity. climate change poses significant risks for agriculture in central asia, as it affects crop yields, water availability, soil quality, pest and disease incidence, and livestock productivity. according to a study by world bank (2013), climate change could reduce agricultural output in central asia by 2.5-4.4% by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for agriculture in central asia could range from $1.1 billion to $1.9 billion per year by 2050. another study by asian development bank (2017) projects that climate change could reduce crop yields in central asia by 8-23% by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for agriculture in central asia could range from $2.9 billion to $7.1 billion per year by 2050. the impact of climate change on agriculture varies across crops and countries in the region. for instance, wheat is projected to experience a larger decline in yield than rice or maize under climate change. kazakhstan is projected to suffer the largest loss in agricultural output due to climate change among central asian countries . within countries, rural areas and smallholder farmers are more vulnerable to climate change than urban areas and large-scale farmers due to their higher dependence american journal of business management, economics and banking volume 19 december, 2023 p a g e | 137 www.americanjournal.org on agriculture for income and livelihoods, lower adaptive capacity, and higher exposure to climatic shocks. energy is another key sector for central asia’s economy and development. the region is endowed with abundant fossil fuel resources, such as oil, gas, and coal. the region also has significant potential for renewable energy sources, such as hydropower, solar power, and wind power. energy accounts for about 10% of the region’s gdp and provides about 80% of the region’s electricity generation. energy is also essential for meeting the region’s growing demand for heating, cooling, lighting, transportation, and industrial production. climate change affects energy supply and demand in central asia through various mechanisms. on the supply side, climate change affects water availability and quality for hydropower generation; temperature and wind patterns for solar and wind power generation; soil stability and infrastructure integrity for fossil fuel extraction and transportation; and air quality and emissions for fossil fuel combustion. on the demand side, climate change affects heating and cooling needs for buildings; irrigation needs for agriculture; water pumping needs for domestic and industrial use; and transportation needs for mobility. according to a study by world bank (2013), climate change could reduce energy output in central asia by 1.8-3.2% by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for energy in central asia could range from $0.4 billion to $0.7 billion per year by 2050. another study by asian development bank (2017) projects that climate change could reduce energy output in central asia by 4-11% by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for energy in central asia could range from $1.2 billion to $2.9 billion per year by 2050. the impact of climate change on energy varies across sources and countries in the region. for instance, hydropower is projected to experience a larger decline in output than solar or wind power under climate change. tajikistan and kyrgyzstan are projected to suffer the largest loss in energy output due to climate change among central asian countries. within countries, urban areas and industrial sectors are more vulnerable to climate change than rural areas and agricultural sectors due to their higher dependence on energy for production and consumption, lower adaptive capacity, and higher exposure to energy shocks. water is a critical resource for central asia’s economy and environment. the region is home to two major river basins: the amu-darya and the syr-darya, which originate from the glaciers and snowmelt of the pamir and tien shan mountains and flow into the aral sea. the region also has several lakes, wetlands, and groundwater aquifers that provide important ecosystem services. water is essential for agriculture, energy, industry, domestic use, and environmental conservation in the region. water is also a source of regional cooperation and conflict, as it is shared among several countries with different interests and needs. climate change affects water availability and quality in central asia through various mechanisms. on the supply side, climate change affects precipitation patterns, snowmelt dynamics, glacier retreat, evaporation rates, and groundwater recharge. on the demand side, climate change affects irrigation needs for agriculture, cooling needs for energy, water pumping needs for domestic and industrial use, and environmental flows for ecosystems. according to a study by world bank (2013), climate change could reduce water availability in central asia by 11-30% by 2050 relative to a no-climate-change scenario. the study also estimates that the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 138 www.americanjournal.org cost of adaptation for water in central asia could range from $0.9 billion to $1.5 billion per year by 2050. another study by asian development bank (2017) projects that climate change could reduce water availability in central asia by 10-25% by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for water in central asia could range from $2.4 billion to $5.8 billion per year by 2050. the impact of climate change on water varies across basins and countries in the region. for instance, the amu darya basin is projected to experience a larger decline in water availability than the syrdarya basin under climate change. uzbekistan and turkmenistan are projected to suffer the largest loss in water availability due to climate change among central asian countrieshttps://www.worldbank.org/en/news/feature/2013/06/25/growing-green-europe-andcentral-asia [6]. within countries, downstream areas and water-intensive sectors are more vulnerable to climate change than upstream areas and water-efficient sectors due to their higher dependence on water for production and consumption, lower adaptive capacity, and higher exposure to water shocks. health is a fundamental human right and a key determinant of well-being and development. the region’s health status has improved significantly over the past decades, as reflected by indicators such as life expectancy, infant mortality, maternal mortality, and communicable disease incidence. however, the region still faces several health challenges, such as high rates of noncommunicable diseases, malnutrition, environmental pollution, and health inequities [6]. climate change poses additional risks for health in central asia, as it affects morbidity and mortality due to heat stress, vector-borne diseases, water-borne diseases, respiratory diseases, mental health disorders, injuries, and food insecurity. according to a study by world bank (2013), climate change could increase health damages in central asia by 1-2% of gdp by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for health in central asia could range from $0.1 billion to $0.2 billion per year by 2050. another study by asian development bank (2017) projects that climate change could increase health damages in central asia by 2-5% of gdp by 2050 relative to a no-climate-change scenario. the study also estimates that the cost of adaptation for health in central asia could range from $0.3 billion to $0.8 billion per year by 2050. the impact of climate change on health varies across diseases and countries in the region. for instance, heat stress is projected to increase more than vector-borne diseases or water-borne diseases under climate change. tajikistan and kyrgyzstan are projected to suffer the largest increase in health damages due to climate change among central asian countries. within countries, vulnerable groups such as children, elderly, poor, and marginalized are more susceptible to climate change than other groups due to their lower health status, lower adaptive capacity, and higher exposure to health shocks. a green economy transition in central asia can offer significant opportunities for enhancing the region’s resilience to climate change, as well as for achieving other development goals, such as poverty reduction, social inclusion, and regional integration. a green economy transition can also help the region to contribute to the global efforts to mitigate climate change, as well as to benefit from the emerging markets and technologies for low-carbon and resource-efficient products and services. however, a green economy transition also faces significant barriers and trade-offs, such as political economy constraints, institutional and governance gaps, financial and technical limitations, and social and environmental risks. the following subsections discuss some of the main opportunities and barriers for a green economy transition in central asia. https://www.worldbank.org/en/news/feature/2013/06/25/growing-green-europe-and-central-asia https://www.worldbank.org/en/news/feature/2013/06/25/growing-green-europe-and-central-asia american journal of business management, economics and banking volume 19 december, 2023 p a g e | 139 www.americanjournal.org a green economy transition can create new opportunities for economic growth and job creation in central asia by tapping into the region’s potential for renewable energy sources, such as hydropower, solar power, and wind power; by improving energy efficiency and conservation in various sectors, such as buildings, industry, and transportation; by promoting sustainable agriculture and natural resource management practices, such as organic farming, agroforestry, water harvesting, and soil conservation; by developing green industries and services, such as recycling, waste management, ecotourism, and environmental consulting; and by fostering innovation and entrepreneurship in green technologies and solutions [7]. a green economy transition can also create new opportunities for social inclusion and cohesion in central asia by addressing the social costs of structural adjustment associated with the shift from brown to green jobs; by enhancing the access and affordability of clean energy and water services for poor and marginalized groups; by improving the health and well-being of the population through reduced air pollution and increased food security; by empowering women and youth through increased participation and leadership in green sectors; and by strengthening regional cooperation and integration through joint management of transboundary water resources and energy markets [7]. a green economy transition can also create new opportunities for environmental sustainability and resilience in central asia by reducing greenhouse gas emissions and air pollution from fossil fuel combustion; by increasing carbon sequestration potential through landscape restoration and afforestation; by enhancing water availability and quality through improved water efficiency here is the addition of the policy implications and recommendations for a green economy transition in central asia. a green economy transition in central asia requires a comprehensive and coordinated policy framework that addresses the multiple dimensions of sustainable development: economic, social, and environmental. such a policy framework should be based on the principles of participation, integration, coherence, and subsidiarity. the following are some of the main policy implications and recommendations for a green economy transition in central asia: enhance the enabling environment for green investments and innovations by reforming the fiscal, regulatory, and institutional systems to remove distortions and barriers, create incentives and standards, and provide support and guidance for green sectors and technologies [8]. mobilize adequate and diversified financing and investment for green sectors and projects by leveraging public and private sources, domestic and international sources, and grants and loans; by improving the access and affordability of green finance for small and medium enterprises and households; by developing green financial instruments and markets; and by enhancing the transparency and accountability of green finance. strengthen regional cooperation and integration for green economy transition by harmonizing policies, regulations, and standards; by facilitating trade, investment, and technology transfer; by establishing regional platforms and mechanisms for dialogue, coordination, and collaboration; by resolving transboundary disputes and conflicts; and by promoting regional public goods and services. build human capital and social capital for green economy transition by investing in education, training, and skills development; by creating decent and inclusive green jobs; by protecting the rights and interests of workers and communities affected by the transition; by enhancing social protection and safety nets; by fostering social dialogue and participation; and by raising awareness and advocacy. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 140 www.americanjournal.org improve data collection, monitoring, evaluation, and reporting for green economy transition by developing indicators, metrics, and methodologies; by establishing information systems and databases; by conducting assessments, audits, and reviews; by disseminating best practices and lessons learned; and by engaging stakeholders and beneficiaries. a green economy transition in central asia is not only a necessity but also an opportunity for the region to achieve sustainable development and resilience to climate change. the region has the potential to become a leader in green growth, innovation, and cooperation. however, the region also faces significant challenges and trade-offs that require concerted efforts from all stakeholders: governments, private sector, civil society, development partners, and regional organizations. a green economy transition in central asia is a long-term process that requires vision, commitment, action, and adaptation. in conclusion, climate change poses a serious threat to the economic and social development of central asia, a region that is highly vulnerable to natural disasters, environmental degradation, and water scarcity. however, there are also opportunities for a green, resilient, and inclusive recovery that can enhance the region’s prosperity and well-being. by investing in climate resilience, landscape restoration, urban air pollution management, circular economy, and renewable energy sources, central asia can transition to a more sustainable and efficient growth model that minimizes environmental impacts and accounts for natural hazards. the world bank’s climate and environment (client) program supports central asia countries in achieving these goals through innovative environmental and economic analytical approaches and transboundary collaboration [9]. a green recovery in central asia can also contribute to the global efforts to mitigate climate change and protect the planet. similarly, there is also a lack of research on how local populations perceive climate change, its impacts, and risks. this is important because communities in central asia, especially in rural areas, are particularly vulnerable to the impacts of climate change. their livelihoods depend on resource availability which degrades due to rising temperatures and natural disasters (floods, aridity, etc.) caused by climate change. climate variability in dry and mountainous areas directly threatens populations, infrastructure, and arable land. perception of increased risk of natural disasters causes parts of the rural population to migrate to other areas. eco-migration in central asia has received only limited scholarly attention. in addition, this also raises the issue of climate justice for the rural population, which contributes much less to greenhouse gas emissions than the urban population. as our review has shown, the issue of climate justice in central asia has received no scholarly attention while it needs to be one of the priority areas for researchers and governments alike. moreover, while the region and its international relations and security dynamics have been studied extensively in the past, the prospect of climate change influencing security and affairs among the states in the region has so far not been studied properly. [10] the very same scholars who over-securitized central asia have ignored the real security threats stemming from climate change. therefore, little is known about how climate change affects and will affect security and relations among the states in central asia. [11] climate change can cause conflicts around food security; exacerbate eco-migration and transform it into a foreign policy issue; complicate regional relations over scarce resources and exacerbate existing water disputes. water-related tensions are likely to rise in central asia unless evidence-based research on the topic is carried out and proper preventive and adaptation policies are developed. in a similar vein, the existing literature does not discuss the position of central asia on american journal of business management, economics and banking volume 19 december, 2023 p a g e | 141 www.americanjournal.org the paris agreement. no studies examine the roles of the central asian states in inter-national climate change negotiations or climate scepticism and activism in the region. reference: 1. edward b barbier, anil markandya a new blueprint for a green economy https://www.researchgate.net/publication/39015804_blueprint_for_a_green_economy 2. green economy definition, history, characteristics, importance felsics.com 3. about green economy | unep un environment programme 4. zengrong li, yanqiu wu, ehsan rasoulinezhad, yishen sheng, chunyu bi, green economic recovery in central asia by utilizing natural resources, resources policy, volume 83, 2023, 103621, issn 0301-4207,https://doi.org/10.1016/j.resourpol.2023.103621. (https://www.sciencedirect.com/science/article/pii/s030142072300332x) 5. green economy forum to discuss green economy development in central asia | united nations development programme (undp.org) 6. climate and environment program in central asia (worldbank.org) 7. climate change in europe and central asia (worldbank.org) 8. mirjana radovanović, sanja filipović and andrea andrejević panić, sustainable energy transition in central asia: status and challenges, energy, sustainability and society (2021) 11:49 https://doi.org/10.1186/s13705-021-00324-2 sustainable energy transition in central asia: status and challenges | energy, sustainability and society | full text (biomedcentral.com) 9. https://www.tandfonline.com/doi/full/10.1080/02634937.2022.2059447 10. dilinuer tuoliewubiekea, yao jun-qianga, chen jinga, mao wei-yia, yang lian-mei, yeernaer humaerhanc , chen yu-hang regional drying and wetting trends over central asia based on koppen climate classification in 1961-2015 advances in climate change research volume 12, issue 3, june 2021, pages 363-372 11. https://www.sciencedirect.com/science/article/pii/s1674927821000769 12. мухитдинова м.з. узбекистан и международные организации: шанхайская организация сотрудничества (шос) и перспективы развития. молодой ученый. 2016. № 11. с. 867– 869. https://elibrary.ru/item.asp?id=26424939 https://www.routledge.com/search?author=edward%20b%20barbier https://www.routledge.com/search?author=anil%20markandya https://www.researchgate.net/publication/39015804_blueprint_for_a_green_economy https://www.felsics.com/green-economy-definition-history-characteristics-importance/ https://www.unep.org/explore-topics/green-economy/about-green-economy https://doi.org/10.1016/j.resourpol.2023.103621 https://www.sciencedirect.com/science/article/pii/s030142072300332x https://www.undp.org/kyrgyzstan/press-releases/green-economy-forum-discuss-green-economy-development-central-asia https://www.undp.org/kyrgyzstan/press-releases/green-economy-forum-discuss-green-economy-development-central-asia https://www.worldbank.org/en/topic/environment/brief/climate-and-environment-program-in-central-asia https://www.worldbank.org/en/region/eca/brief/climate-change-in-europe-and-central-asia https://doi.org/10.1186/s13705-021-00324-2 https://energsustainsoc.biomedcentral.com/articles/10.1186/s13705-021-00324-2 https://energsustainsoc.biomedcentral.com/articles/10.1186/s13705-021-00324-2 https://www.tandfonline.com/doi/full/10.1080/02634937.2022.2059447 https://www.sciencedirect.com/journal/advances-in-climate-change-research https://www.sciencedirect.com/journal/advances-in-climate-change-research https://www.sciencedirect.com/journal/advances-in-climate-change-research/vol/12/issue/3 https://www.sciencedirect.com/science/article/pii/s1674927821000769 https://elibrary.ru/item.asp?id=26424939 american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 61 www.americanjournal.org financing business on islamic principles: an ethical and sustainable approach valijonov kh.b master, academy of banking finance a b s t r a c t k e y w o r d s islamic finance has attracted interest in recent decades as an alternative financial system that works according to islamic principles. this article examines the concept of financing a business on islamic principles and its potential benefits for ethical and sustainable economic growth. we discover the basic principles of islamic finance, such as the prohibition of interest (riba), the prevention of excessive uncertainty (garar) and the demand for the exchange of profit and loss (mudarabah). in addition, we will analyze various islamic financing tools, including musharakah, murabahah and ijarah, and highlight their practical applications for business financing. we discuss the potential benefits of islamic finance, including social responsibility, promotion of fair wealth distribution, and resilience to financial crises. we will also solve the problems faced in the implementation of islamic financing principles and explore the paths for further research. islamic finance has gained much attention in recent years due to its ethical and inclusive nature. however, its implementation and adoption are faced with a number of problems that hinder its growth potential. this article highlights key obstacles such as standardization of sharia compliance, development of competitive human resources and elimination of misconceptions related to the islamic financial sector. it also emphasizes the importance of continuous research and innovation to overcome these challenges and further boost the growth of islamic finance. introduction: the global financial crisis of 2008 and the subsequent economic downturn brought attention to the potential shortcomings and risks associated with traditional bank-finance systems. as a result, interest in islamic finance grew sharply due to its ethical and sustainable principles. islamic finance operates under sharia law, derived from the teachings of the quran and hadith, which prohibits the practice of exploitation. this article focuses on the study of the concept of business financing islamic principles and its potential benefits for a more equitable and sustainable economic system. islamic finance has witnessed significant growth in the past few decades, and has established itself as an alternative financial system based on ethical principles derived from islamic law (sharia). however, despite its expanding popularity, a number of obstacles prevent its wider introduction and adoption. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 62 www.americanjournal.org this article explores these challenges and highlights the need for continuous research and innovation as a means to effectively solve them. 2. basic principles of islamic finance: 2.1 prohibition of interest (riba): islamic finance strictly prohibits the collection or payment of interest, as it is seen as an exploitative and unfair practice. instead, islamic finance promotes the concept of risk sharing, where the financier assumes real risk and shares profit or loss in the business. 2.2 avoidance of excessive uncertainty (gharar): the principle of avoiding excessive uncertainty suppresses uncertain or speculative operations that can lead to unfair advantages or exploitation. islamic finance provides transparency, contractual clarity and a balanced risk distribution in business transactions. 2.3 profit and loss distribution (mudarabah): islamic finance encourages the principle of mudarabah, which involves a partnership or joint venture between a financier (rab-ul-mal) and an entrepreneur (mudarib). the financier provides capital, and the entrepreneur contributes to the management experience, sharing profits on the basis of an agreed ratio. 3. islamic financing tools: 3.1 musharakah: musharakah is a form of joint venture financing where partners consolidate their capital to organize or expand the business. profits and losses are distributed according to the agreed ratio, while the risk of the financier is limited by the invested capital. 3.2 murabahah: murabahah is a financing procedure in which the financier purchases and sells the asset to the customer at an agreed fixed price, including profit. the client pays in installments, making it a debt-based financing tool. 3.3 ijora: the lease is an islamic leasing agreement in which the financier buys the asset and rents it to the customer for the agreed rental amount. the property remains with the financier until the lease expires. 4. benefits of islamic finance: 4.1 ethical considerations: islamic finance promotes ethical business practices that conform to islamic teachings, reinforces a sense of social responsibility, and suppresses exploitation. this ethical dimension provides investors and borrowers with a real alternative to traditional finance. 4.2 wealth redistribution: islamic finance emphasizes equal distribution of wealth and ensures that prosperity is shared among different stakeholders. it serves as a potential solution to income inequality and contributes to social stability. 4.3 resilience to financial crises: due to the avoidance and overexposure of speculative practices, islamic finance has demonstrated better stability in relation to financial crises. its focus on risk sharing and real asset support reduces the likelihood of financial bubbles and overuse. 5. problems and future prospects: the implementation and adoption of islamic finance faces a variety of challenges, including standardization of sharia compliance, development of competent human resources, and elimination of misconceptions related to the islamic finance sector. however, the growing interest in islamic finance american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 63 www.americanjournal.org on a global scale is indicative of its future growth potential and underlines the need for constant research and innovation in the field. challenges and opportunities in the implementation and adoption of islamic finance: a call for ongoing research and innovation 5.1. standardization of sharia compliance: one of the important challenges facing the islamic financial industry is non-compliance with standardized sharia. different interpretations of islamic law between countries and scholars create inconsistencies in financial products and practices. the creation of a generally accepted standard framework, which is controlled by influential scientists, is essential to maintain the integrity and trust of stakeholders. 5.2. competitive human resource development another challenge is to form a skilled workforce that can meet the demands of the industry. the field of islamic finance requires qualified specialists in both traditional finance and islamic principles. the limited number of qualified persons in this area is hindering the growth of the industry. the solution to this problem requires cooperation between educational institutions, industry participants and regulatory bodies to promote specialized training programs and certificates. 5.3. misconceptions and awareness misconceptions associated with islamic finance often lead to negative stereotypes and limited awareness among potential investors. overcoming these misconceptions is essential to reduce doubts and attract a wide range of participants. large-scale educational campaigns, collaboration with mainstream media, and the transparent delivery of the moral and social benefits of islamic finance can play a key role in ending misunderstandings and raising awareness. 5.4. future growth potential despite the difficulties encountered, many indicators indicate the enormous growth potential of islamic finance. the growing interest in global indicators of islamic finance shows its relevance and encourages more countries and institutions to adopt its principles. in addition, the ethical nature of islamic finance, focused on sustainable and inclusive practices, resonates with a growing segment of globally conscious investors. 5.5. the role of research and innovation constant research and innovation is required to overcome existing difficulties and take advantage of the potential growth of islamic finance. research should focus on developing standardized bases, improving product offerings, and addressing problems that arise with industrial development. innovation in financial technology (fintech) can also play a key role in increasing availability, efficiency and transparency in the islamic financial ecosystem. conclusion: business financing under islamic principles offers a moral and sustainable alternative to conventional financing, emphasizing risk sharing, fairness, and social responsibility. the principles of islamic finance strive for equality and social welfare, ensuring economic stability. while implementation challenges continue, the growing interest in islamic finance provides an opportunity to develop a financial system that embodies moral values and contributes to sustainable economic growth. islamic finance has demonstrated its potential for growth, but many problems remain. standardization of sharia compliance, human resource enhancement and elimination of misconceptions is an important step towards wider introduction and adoption. constant research and innovation will be important in american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 64 www.americanjournal.org solving these problems, ensuring the continuous development and global recognition of islamic finance as an ethical and inclusive financial system. references 1. antonio, m. s. 2001. islomiy bank ishi: nazariyadan amaliyotga. jakarta: gema insani matbuot. 2. antonio, m. s. va sanrego, m. t. 2012. islomiy bank faoliyati tahlili: indoneziya va iordaniyada maqashid indeksini joriy etish. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 123 www.americanjournal.org the virtual world and its objects from the perspective of private law regulation in the republic of uzbekistan эгамбердиев эдуард хажибаевич исполняющий обязанности доцента кафедры гражданское право ташкентского государственного юридического университета, доктор философии (phd) по юридическим наукам a b s t r a c t k e y w o r d s the article analyzes the problems of determining the legal status of the virtual world and objects in it, examines the theories of virtual property and gives the relationship between property rights and intellectual property to regulate relations arising in the virtual world. virtual property , real world, virtual world, property law, private law, computer code. introduction with the emergence and rapid development of information technology, the modern world was divided into two: the real and virtual world. for the most part, the existing legal orders regulate precisely the relations that arise in the real world and can partly be applied to relations in the virtual space. the development of technology and the emergence of a virtual space opposite to the real world today requires solving important issues related to the regulation of private law relations in this space. the question arises – can we use common instruments of private law in relation to the virtual world? if we pay attention to the history of the development and formation of private law, we can say that the newly created relations in this area have always found their place in the system of private law norms. in our opinion, private law relations arising in the virtual world should be regulated by the general rules of private law and only supplemented by the relevant institutions with the necessary set of new tools. property interests in virtual worlds flow into the real world, and assets accumulated in this world have value in the real world. court cases over the ownership of various virtual assets are no longer uncommon in developed countries, and every day thousands of units of virtual property are transferred to the real world for real money. the main purpose of this study is to study the issues of determining the legal status of virtual space, new approaches to the classification of objects in private law, the civil status of objects in the virtual world and the possibility of applying general institutions of private law to them. in this area, a number of scientific works of uzbek civil scientists are relevant, among which o. okyulov [1], n.f. imomov [2], d.m. karakhodzhaeva [3-8, 12], l.m. burkhanova [7-10, 12], b.r. topildiev [11], u.sh. sharakhmetova [12, 13], k.m. mehmonov [14-17], d.a. yeschanova [18-20] and others should be distinguished. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 124 www.americanjournal.org the issues of legal regulation of the virtual world, the civil status of objects in it, the relations arising in this area were also considered by the author in previous scientific publications [21-24]. to determine the legal status of the virtual space, and the relations that arise in it, it is advisable to first understand what this space is. virtual space does not exist by itself, since without appropriate technical means (computer, electronic network) there is no cyberspace. here, information is expressed by a special programming language and is represented in the form of sets of zeros and ones (bits), that is, we are talking about digital technologies (codes), with the help of which we get into the virtual world. some legal orders of our time even give a legal interpretation of the concept of the virtual world. an example of this can be the definition of the us supreme court of virtual space as a unique medium, known to its users as cyberspace, which is not located in a specific territory, but is available to everyone anywhere in the world via the internet [25]. n.n. teleshina compares the virtual space with the information space and comes to the conclusion that the second concept is much broader, since, along with the relations arising from the use of computer and other electronic networks, it also includes other relations, for example, about the formation and functioning of archives, libraries, databases and data banks [26]. in russian language, the word "virtual" has several meanings: in the everyday sense, it is the opposite of the real one, an illusion, something impossible or imaginary; in the philosophical sense, it is possible, but not actual, being; from the point of view of computer science – stored in digital form as software, database, hypertext, etc.; something that is generated by a computer. [27] that is, virtual space cannot exist on its own. first you need to create a material object (computer) and, when using it, already enter the virtual space, usually using the internet. thus, the virtual space is generated with the help of an object of the material world, which is also an object of private law (institutions of property law). if we proceed from the concept of extending the institutions of private law to the technologies with the help of which virtual space is created, then we must solve the problem of using a specific sub-branch of private law in relations arising within the framework of virtual space. most computer code is just one step away from a pure idea. it's not competitive; that is, the use of code by one person does not deprive another person of the opportunity to use it. such a code is protected by intellectual property law [28]. intellectual property protects creative interest in non-competitive resources. if intellectual property did not exist, the creators would not be able to recover the costs of creating objects [29]. but there is another kind of code that is rarely discussed in the technical or legal literature. this code is more like land or movable property than ideas. it permeates the internet and includes many of the most important online resources. often, such code forms the structural components of the internet itself. domain names, urls (uniform resource locators), websites, email accounts, crypto assets, items (artifacts and improvements) in multiplayer internet games are all examples of the second type of code. they compete. if one person owns and controls them, others do not have access to them. unlike the software on our computer, they do not disappear when the computer is turned off, and such code is called "virtual property". however, there is a problem. in general, many legal orders continue to govern virtual property through intellectual property law. even where there has been some acknowledgement that virtual property is somehow "different," no clear formulation of this distinction has been proposed. as a result, holders of intellectual property rights systematically eliminate emerging virtual property rights using contracts american journal of business management, economics and banking volume 15 august, 2023 p a g e | 125 www.americanjournal.org called end-user license agreements [30, p. 1050]. despite the existence of such agreements, there is no clear protection of property rights in the virtual world. that is, the owner of the code can limit the use of the object in the virtual world by the user. common ownership works to ensure that resources are used correctly. if a general theory of virtual property is not developed, then relations in this area will not be regulated at the proper level, which is why it is so important that we have a theory of virtual property. for example, a key step in the development of the internet was the adoption of an ownership regime in the form of the international corporation for assigned names and numbers (icann), an organization that acts as an internet address registration system. the theory of virtual ownership is crucial to ensure the efficient use of internet resources, reducing the costs of searching and negotiation that would otherwise prevent the flow of valuable resources to highly efficient use. the theory of virtual ownership is also important for the future of the internet. if we protect virtual property, the internet can become a three-dimensional global virtual environment. the possibilities of medical, commercial, social, military, artistic and cultural development offered by such a virtual environment have only just begun to be explored. thus, we must take care of the protection of virtual property, not only because markets already value it very much, but because we will all value it more because of the potential it offers for the development of society. finally, the theory of virtual property is important for maintaining the equilibrium of the law as it adapts to new contexts [31]. virtual property is a competitive, persistent, and interconnected code that mimics the characteristics of the real world. virtual property shares three legally significant characteristics with real-world property: rivalry, perseverance, and interconnectedness. based on these general characteristics, virtual property should be treated as real property in accordance with the law. most of the code is intended to be used solely as an uncompetitive resource. one person's use of code doesn't prevent another person from using it. the lack of competition allows you to create and distribute many perfect copies at almost zero cost. the lack of code competition is a novelty of the internet that has captured the imagination of legal and public circles most of all in the form of lawsuits against music and movie downloaders, manufacturers of file-sharing software [32]. objects and places in the physical world are permanent. for example, a statue can only be sculpted once. after that, it remains in the town square for hundreds of years. similarly, code is often made permanent, meaning it doesn't disappear after each use or run on a single computer. for example, an email account can be accessed from a laptop, personal computer, or mobile phone. when the owner of an email account turns off their laptop, the information in that account does not cease to exist. it is stored on the server of its internet service provider. objects in the real world are also naturally interconnected. two people in the same room perceive the same objects. objects in the real world can influence each other according to the laws of physics. similarly, code can be made interconnected, so that while one person can control it, others can use it. the value of a url or email address isn't just that the owner has control over it; the value is that other people can connect to it and use it. they may not be able to manage it without the owner's permission, but as with real estate in the real world, with the owner's invitation, they can interact with it. by now, we have seen that many important online resources have nothing to do with intellectual property. on the other hand, these resources have been designed to have legally significant characteristics of immovable and movable property. this makes common ownership an obvious american journal of business management, economics and banking volume 15 august, 2023 p a g e | 126 www.americanjournal.org possible source of right for these resources. the critical question is whether property law can contribute anything useful to the regulation of intangible assets such as virtual property. property theory is the study of how limited resources should be used. however, it is not obvious that the resources of the internet are limited. cyberspace is infinite or almost infinite. people can create more space for themselves. because internet resources don't seem scarce, property theorists (as opposed to intellectual property researchers) don't say much about code to date. [9] but even where there is a lot of space, people can still block each other so that they are not productive. mutual exclusion from the use of resources creates the same acute problem as the usual history of resource scarcity. in the context of virtual property, the relevant utility is the code itself. because virtual property only acts as a whole at the code level, the corresponding ownership package also appears at the code level. that right matters. and it can be sold. for example, if you're selling an address online, you're not selling the physical computers that host it. if you share an email address, you are not transferring your personal computer. the right code is what matters, no matter what system or movable it runs on. so, when we consider where to divide ownership rights on the internet, we will preserve useful rights packages by providing virtual property rights at the code level. therefore, the recognition of code-level ownership rights for virtual property is proposed. and accordingly, the question arises if the code is property, that is, it acts as an object of civil law, then what type of property does it belong to movable or immovable? some scholars are inclined to the theory of movable property rights on the internet [33; 34]. if we are talking about the fact that a person owns an account in the zoom program and he pays a certain amount of money monthly for its use, then the person is entitled to use this account and invite a certain number of users to his "room" for a meeting to conduct an online conversation. at the same time, it is this person who owns the account in the virtual world, regardless of the intellectual property embedded in the base code. in the event of a dispute over the use of virtual property, the courts of the republic of uzbekistan would refuse to consider a claim for virtual property just because there is no law regulating it. cases on the application of property rights to the internet are becoming more and more frequent in the modern world [35]. to resolve these cases, courts must have a clear justification for what property law will do in virtual spaces. what's more, as we've discovered, virtual property issues are pretty well addressed by rules that courts are already familiar with. there is an even stronger argument in favor of addressing issues of distribution of use on the internet by reference to common ownership. contract and property have evolved to balance each other. the law of contract allows the parties to realize the value of personalized utility in the form of transactions. the law of property restricts this ability insofar as it blocks high-value property for low-value use. if we talk about the legal nature of the virtual space, then it should be stated that relations in the virtual space should be regulated by private law, but the question of which institution remains open. in this sense, it is appropriate to consider the option of regulation through intellectual property or property law. that is, the virtual space that arises on the basis of a special computer code should belong to someone's property a sub-branch of property law. and public and multi-user codes without competition should be governed by intellectual property. at the same time, everything that is created on the basis of these codes (certain virtual objects) should fall under the regulation of property law (ownership of virtual things). american journal of business management, economics and banking volume 15 august, 2023 p a g e | 127 www.americanjournal.org in addition, it is necessary to note the role of intellectual property in virtual property. one extremely important caveat: the recognition of virtual property rights does not mean the destruction of intellectual property. the owner of the virtual property does not have the right to copy it. we instinctively and logically understand that the possession of a thing is always separate from the possession of the intellectual property embedded in the thing. the ownership of the book is not the intellectual property of the novel written by the author. the buyer of the book owns the physical book, nothing more. the ownership of the cd is not the intellectual property of the music. the buyer of the music owns that copy of the music, nothing more. similarly, the ownership of virtual property does not threaten the intellectual property interests owned by the creator of the property. the owner of the virtual property has the same rights as the owner of the book. thus, intellectual property should not conflict with virtual property. in fact, the two institutions, if well balanced, will complement each other. in developed legal systems, there are already successful regimes that balance these interests. the doctrine of the first sale, for example, minimizes transaction costs by including the value of future sales in the value of the product when it is first sold [36]. thus, the creator of the intellectual property does not track a long chain of potential follow-up sales. similarly, virtual property will add value to intellectual property. take websites for example: clear website rights have contributed to serious commercial investment in content for websites. this clearly benefits content creators. ownership in the virtual world has real value in the sense that the creator of the software that creates the virtual world that underlies the virtual property will make a profit. thus, the value of intellectual property is not a reason to waive virtual property rights. thus, we come to the following conclusions: 1. virtual space does not exist by itself, it is created by man with the help of objects of the material world, and accordingly in relation to ideas, we use the norms of intellectual property (computer code), and to regulate relations between persons in the created virtual worlds (idea) and emerging relations about virtual objects, a proposal is put forward to regulate them by the norms of property law (property rights). 2. the most common objects in the virtual space are domain names, urls (uniform resource locators), websites, email accounts, crypto assets, items (artifacts and improvements) in multiplayer internet games that act as a set of codes (bits zeros and ones), and it is these codes that form the basis of virtual objects. the idea of creating such an institution of private law in the legislation of the republic of uzbekistan as virtual property and making appropriate amendments and additions to the current civil code of the republic of uzbekistan is put forward. 3. many developed legal orders still regulate relations from virtual property by the norms of intellectual property laws, which is erroneous and leads to a large number of disputes between users and developers. therefore, it is necessary to differentiate relations in cyberspace. 4. virtual space has virtually no boundaries and excludes any competition in relation to its use, as opposed to, for example, land plots (real world), which are limited, which creates the basis for establishing property rights in relation to limited resources. however, in cyberspace, there is the possibility of blocking users (restricting access to the use of a virtual object), which already creates an atmosphere of competition over the ownership of intangible goods and requires the establishment of ownership of the virtual object. 5. the introduction of the institution of virtual property into private law in no way infringes on intellectual property rights, since the virtual owner owns a specific virtual object created on the basis american journal of business management, economics and banking volume 15 august, 2023 p a g e | 128 www.americanjournal.org of the creative activity of a person, in respect of which intellectual property is distributed. that is, the right of a virtual owner to a virtual object is no different from the ownership of a book, and intellectual property extends to the person who created the virtual object or book. references: 1. okyulov o. constitutional norms on forms of ownership as an integral part of the doctrinal foundations in the new civil code of the republic of uzbekistan // review of law sciences. – 2020. – t. 2. – no. special issue. – s. 26-33. 2. imomov n. f. new objects of intellectual property law/editor-in-chief o. okyulov //tashkent: tsil. – 2011. 3. karakhodzhaeva d. m., temirova n. s. civil law // general part. tashkent: ukituvchi. – 2008. 4. karakhodzhaeva d. new mechanisms for the protection of private property as a basis for improving the investment climate // review of the legislation of uzbekistan. – 2019. – №. 1. – s. 34-35. 5. karahodjaeva d. innovative solutions in the field of the institute of property rights and other real rights–the key to the liberalization of the economy //review of law sciences. – 2018. – т. 2. – №. 3. – с. 11. 6. sadullaev k., karakhodzhaeva d. crypto assets as an object of civil rights and their negotiability // society and innovations. – 2021. – t. 2. – no. 4/s. – p. 66 7. issues of regulation of the institution of property rights in the field of innovative transformations carried out in uzbekistan. dm karakhodzhaeva, lm burkhanova. accounting and analytical tools for studying the economy of the region, 243-248. 8. karakhodzhaeva d. m., burkhanova l. m. features of the implementation of reforms of private ownership of land in the republic of uzbekistan // science and education. – 2021. – t. 2. – №. 5. – p. 1083-1096. 9. burkhanova l. m. legal characteristics of private property of certain types of legal entities in the context of the transition of the republic of uzbekistan to market relations // bulletin of perm university. jurisprudence. – 2010. – №. 2. – s. 88-98. 10. burkhanova l. m. issues of improving the legal regulation of intangible benefits as a special object of civil law in the draft of the new edition of the civil code of the republic of uzbekistan. – 2021. 11. topildiev b., khursanov r., usmonova m. trust management agreement property and prospects for its development in the republic of uzbekistan //european journal of molecular & clinical medicine. – 2020. – т. 7. – №. 3. – с. 3199-3205. 12. dilorom k., burkhanova l., sharakhmetova u. features of determining the legal status of legal entities in the draft new version of the civil code of the republic of uzbekistan and the need to introduce new institutions in the legislation: theoretical developments and proposals //european journal of molecular & clinical medicine. – 2020. – т. 7. – №. 2. – с. 2151-2161. 13. шарахметова у. issues of improving the regulation of circumstances preventing marriage in family law //юридик фанлар аҳборотномаси. – 2017. – №. 2. – с. 50-53. 14. mehmonov k. m. features of the legal regime of digital rights // journal of legal research. – 2021. – t. 6. – №. 1. 15. mehmonov k. m., musaev e. t. legal regime of digital rights //ilkogretim online. – 2021. – т. 20. – №. 3. – с. 1683-1686. https://scholar.google.ru/citations?view_op=view_citation&hl=ru&user=aztnou8aaaaj&citation_for_view=aztnou8aaaaj:ufrvopgsrksc https://scholar.google.ru/citations?view_op=view_citation&hl=ru&user=aztnou8aaaaj&citation_for_view=aztnou8aaaaj:ufrvopgsrksc american journal of business management, economics and banking volume 15 august, 2023 p a g e | 129 www.americanjournal.org 16. mehmonov k. m. issues of legal regulation of relations related to information and communication technologies // review of law sciences. – 2020. – №. 1. – s. 75-78. 17. mehmonov k. m. computer virus as a source of increased danger // law and life. – 2016. – №. 5-6. – p. 104-119. 18. eshchanova d. a. the main issues of the application of legislative norms in the field of insurance in the republic of uzbekistan //international journal of advanced research in education, technology and management. – 2023. – т. 2. – №. 4. 19. eshchanova d. a. improving civil law in investment activity insurance in the republic of uzbekistan //world bulletin of social sciences. – 2022. – т. 13. – с. 16-21. 20. eshchanova d. actual problems of legislation of the development of internet insurance in uzbekistan //tsul legal report international electronic scientific journal. – 2020. – т. 1. – №. 1. 21. egamberdiev e. kh. some problems of determining the civil legal status of the virtual world and its objects. 22. egamberdiev e. kh. internet of things technologies and personal data: issues of property rights // oriental renaissance: innovative, educational, natural and social sciences. – 2023. – t. 3. – №. 1-2. – p. 541-558. 23. khajibaevich e. e. civil law status of virtual world objects //eurasian research bulletin. – 2023. – т. 16. – с. 33-41. 24. egamberdiev e. kh. legal issues of trade in objects of the virtual world for real money // innovative scientific research in the modern world: theory, methodology, practice. – 2022. – p. 100-105. 25. darrel menthe, jurisdiction in cyberspace: a theory of international spaces 4 mich.tel.tech.lrev.3 (april 23, 2008) // http://www.law.umich.edu/mttlr/vol-four/menthe.html. 26. teleshina n.n. virtual space as a new legal construction: to the formulation of the problem. 2013. №7-2. 27. kasyanov, v.v. sociology of the internet: textbook for academic bachelor's degree / v.v. kasyanov, v.n. nechipurenko. — moscow: yurait publishing house, 2019. — 424 p. — (bachelor. academic course). — isbn 978-5-534-04944-2. — text: electronic // educational platform urait [site]. — url: https://urait.ru/bcode/438739. 28. bradford smith & susan o. mann, innovation and intellectual property protection in the software industry: an emerging role for patents?, 71 u. chi. l. rev. 241, 242-44 (2004). 29. richard posner, antitrust in the new economy 3 (u. chi., john m. olin law & economics working paper no. 106, 2000), available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=249316. 30. fairfield, joshua, virtual property. boston university law review, vol. 85, page 1047, 2005, indiana legal studies research paper no. 35, available at ssrn: https://ssrn.com/abstract=807966. 31. caroline bradley & michael froomkin, virtual worlds, real rules, 49 n.y.l. sch. l. rev. 103, 103 (2005). 32. mgm studios inc. v. grokster, ltd., 125 s. ct. 2764 (2005). 33. patricia bellia, defending cyberproperty, 79 n.y.u. l. rev. 2164, 2170 (2004). 34. richard epstein, cybertrespass, 70 u. chi. l. rev. 73, 76 (2003). 35. ebay v. bidder’s edge, 100 f. supp. 2d 1058 (n.d. cal. 2000). 36. r. anthony reese, the first sale doctrine in the era of digital networks, 44 b.c. l. rev. 577 (2003). http://www.law.umich.edu/mttlr/vol-four/menthe.html https://urait.ru/bcode/438739 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=249316 https://ssrn.com/abstract=807966 american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 103 www.americanjournal.org the concept and significance of financial investigation: international standards and foreign experience, analysis of national legislation r.kh.rakhimov senior lecturer of the academy of the general prosecutor's office of the republic of uzbekistan a b s t r a c t k e y w o r d s the article is devoted to the analysis of studies by foreign scholars regarding the theory of financial investigation, in particular, the term “financial investigations”. the article discloses the international experience in the field of regulation of financial investigations and the use of this concept in national legislation. fatf, financial investigation, proceeds of crime, criminal activity, money laundering, terrorist financing, predicate offense, money, property, seizure, confiscation, forensic. introduction the rapid development of the economy, the improvement of payment systems, the introduction of new technologies in the financial system, in turn, create a number of difficulties in investigating economic crimes. this problem is due to the increase in the number of crimes of this type, the multi-episode nature of crimes, high social risk, various new financial schemes using modern electronic technologies not only in the republic of uzbekistan, but also abroad, as well as the consequences of the scale of criminal activity. therefore, an effective financial investigation of a criminal case has several factors such as specifics of the situation, the knowledge and skills of a person conducting the investigation. however, theoretical underpinnings play an important role in the study of this concept. unfortunately, currently the shortcomings of theoretical concepts and rules make it difficult to develop a unified policy in the fight against economic crime. at the same time, in our opinion, this problem is primarily related to the concept of "financial investigation". recently, the term "financial investigation" is widely used not only in foreign, but also in the system of application of national law. in particular, the term “financial investigation” is widely used in the activities of the financial action task force on money laundering (hereinafter referred to as fatf) and its regional groups.1 1decree of the president of the republic of uzbekistan no. up-6252 “on approval of the strategy for the development of the national system of the republic of uzbekistan on combating the american journal of business management, economics and banking volume 15 august, 2023 p a g e | 104 www.americanjournal.org national organizations gain knowledge and skills on the concept of "financial investigations" in the assessment processes, trainings and seminars conducted by fatf member states to study the compliance of the system of combating money laundering, terrorist financing and financing of weapons of mass destruction with international standards.2 it should be noted that the concept of "financial investigation" in science has not been studied and is not normatively defined in the legislation. the revision of the fatf recommendations enhanced a focuse on the practical components of a system for combating money laundering and terrorist financing. one of the main tasks was to strengthen the role of standards that define the scope of functions, responsibilities and powers of law enforcement agencies in conducting financial investigations of crimes related to money laundering and terrorist financing. as a result, the updated fatf recommendations determine financial investigations as a key element of the recommendations applied by the law enforcement agencies.3 as defined in the fatf recommendations, the term “financial investigation” refers to the investigation of the financial aspects of criminal activity. the main purpose of the financial investigation is to identify and document the facts of the movement of funds in the course of criminal activity. the link between the origin of the funds, the recipients of the funds, when they were received and where they are stored can be evidence and a source of information about criminal activity. determining the scope of criminal activity, identifying criminal connections and groups, searching for criminal assets, sources of terrorist financing and other assets subject to confiscation, as well as collecting evidence that can be used in court, all these will contribute to an overall increase in the effectiveness of the measures carried out by uzbekistan against money laundering and terrorism financing. to this end, the fatf recommendations set out general principles for conducting financial investigations for various types of legal systems and law enforcement agencies. according to the recommendations, the main objectives of the financial investigation are: identification of criminal proceeds, search for assets and application of the procedure for confiscation of assets using preliminary measures such as freezing, arrest, when necessary; initiation of criminal cases on money laundering, when necessary; revealing the financial and economic foundations, undermining transnational criminal ties and gaining knowledge about the types and nature of criminal schemes. collection of evidence in a criminal case. financial investigation consists in the collection and analysis of all available information in order to carry out criminal prosecution, deprive the perpetrators of criminal proceeds and means of committing a crime. criminals generally prefer to maintain some level of control over their assets, which usually results in a paper trail that leads back to the perpetrator. the paper trail can also lead to other offenders and possibly to the location where the evidence and means of committing the crime are located. legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” dated june 28, 2021. national database of legislation as of 06/29/2021, no.06/21/6252/0617. http://old.lex.uz/docs/5482739. 2see v. teplov financial investigation, litres., 2018., moscow. p. 3-6. 3fatf financial investigation guidelines: operational issues june 2012 paris. – p. 8. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 105 www.americanjournal.org the ability of law enforcement agencies to conduct financial investigations and having access to financial and other information is vital to the effective fight against money laundering, predicate offenses and terrorist financing offences.4 such investigations usually lead to the identification of other, previously unknown crimes, as well as assets that were acquired with the proceeds of crime and, therefore, may be subject to confiscation. at the same time, predicate crimes are any actions related to the receipt of criminal proceeds.5. it should be noted that the use of information of a financial nature, i.e. information relating to banking transactions, funds in accounts and property is of personal importance and the use of this information requires confidentiality. in this regard, the bodies authorized to conduct financial investigations are required to know the norms of the legislation on the rights and freedoms of the individual. according to the fatf recommendations, each country should have a competent authority to conduct financial investigations of cases of money laundering, predicate crimes and crimes related to the financing of terrorism. it is also necessary to create bodies authorized to search, identify and seize property and other assets subject to confiscation. financial investigation should be an integral part of the overall strategy for combating crime. based on this, it is necessary to develop comprehensive legislative measures that will reflect the role of financial investigation as an integral part of the work of law enforcement agencies in uzbekistan. clear goals and objectives, targeted measures, sufficient resources, training for investigators, and use of data are all elements of an effective financial investigation strategy in any country. it should be noted that the recommendations use the term “parallel financial investigation”, which means conducting a financial investigation simultaneously with the underlying crimes, money laundering and terrorist financing. law enforcement authorities should conduct a parallel financial investigation when investigating this type of crime or send materials to such a competent authority for financial investigation. financial investigations can be carried out not only by the preliminary investigation or law enforcement agencies, but also by other competent authorities. for example, in the russian federation, the federal financial monitoring service rosfinmonitoring, not being a law enforcement agency, conducts financial investigations in the field of money laundering and terrorist financing. following the recommendations of the fatf, the study of foreign experience in this area shows that for the first time financial investigations were applied in the united states. in particular, the conduct of a financial investigation by the us department of the treasury is characterized by the identification 4fatf recommendations: international standards on combating money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction. 2012 february., itmcfm., 2012. p. 141. 5united nations convention against transnational organized crime (adopted by general assembly resolution 55/25 of november 15, 2000). art. 2 and 6. https://www.un.org/ru/documents/decl_conv/conventions/orgcrime.shtml. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 106 www.americanjournal.org and recording of cash flows from financial crimes and the study of financial documents related to this activity.6 in the structure of the us department of the treasury, the internal revenue service and its divisions (internal revenue service, irs), the office of terrorism and financial intelligence (tfi) have been created to detect and investigate financial crimes. the ministry's counter-terrorism and financial intelligence service includes the financial crimes enforcement network (fincen), which is engaged in combating money laundering and other financial crimes by investigating suspicious and large-scale monetary transactions, maintaining a database on such transactions and ensuring the exchange of information with competent authorities in the fight against financial crimes. the main task of these units during the financial investigation is to identify funds associated with criminal activity and document their movement. hence there is a high probability of detecting criminal activity by examining the facts proving where the money came from, who received it and when, how it was done. in the us experience, the concept of financial investigation is somewhat broader, that is, the process includes not only crimes in the financial sector, but also other crimes committed using the financial sector. for example, in american practice, the financial aspects of the drug business are also considered financial crimes. according to william fox, director of the us financial crimes enforcement service, the main task of the service's experts is to help law enforcement agencies identify the financial aspects of money laundering.7 the value of financial investigation as a practical activity lies in the application of a set of guidelines on the use of accounting, financial analysis, banking and other applied economic sciences in order to determine the financial component of criminal activity. some scholars believe that the concept of financial investigation coincides with the term "forensic". in particular, a. enof and p. omegbon described this term as an activity that includes audit, forensics and financial tools to detect fraud. at present, this activity is widely used mainly in the private sector, i.e. activities aimed at exposing fraud and corruption of company employees, which is carried out through the analysis of financial documents and the study of computer programs and technologies.8 we cannot fully agree with this definition, since in accordance with international standards financial investigation is a type of activity carried out by law enforcement agencies specially authorized by the state. as is the case with some private sector companies, audits conducted by audit firms to ensure internal financial stability do not fully include the concept of financial investigation, and these bodies cannot be included in the list of entities conducting financial investigations. at the same time, it is advisable to 6 lebedev i.a., efimov s.v. financial investigations: russian practice and foreign experience audit statements. 2018. no. 10. pp. 74-77. https://wiseeconomist.ru/poleznoe/42641-finansovyerassledovaniya-rossijskaya-praktika-zarubezhnyj-opyt. 7 the americans call us to intelligence. interview with william fox // rossiyskaya gazeta. 2005. n 3780. https://rg.ru/2005/09/09/finrazvedka-usa.html. 8 fedotov n.n.: forensics computer forensics m.: legal world, 2007. p. 12-13. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 107 www.americanjournal.org use these organizations, the information they provide, as an auxiliary force and resource in conducting financial investigations. in the activities of law enforcement agencies, forensic activity consists in collecting and evaluating evidence for crimes committed using computer technology.9 in our opinion, forensic examination is part of the financial investigation and is the subject of discussion when carried out by law enforcement or other authorized bodies. russian scientists e. kondratyeva and a. goryunov, who conducted research in this area, characterized the financial investigation as the study and collection of evidence of crimes committed in connection with money. v. efimov and a. brodunov argued that financial investigations consist of the investigation of economic crimes, internal audits and supervisory functions performed by the state.10 according to n. stakanova and t. tatarovskaya, who also conducted the research in this area, financial investigation is the study of the financial side of criminal activity, i.e. the identification and accounting of cash flows obtained by criminal means. they noted that when conducting financial investigations, it is advisable to ensure interdisciplinary communication, which implies the presence of economic (identification and study of the economic mechanism of the offense), legal (qualification of offenses), criminological (collection, study and consolidation of documents), forensic and psychological (identification of the psychological characteristics of a person who has committed economic crimes) factors of financial investigation. local scholars u. nigmadzhanov and d. khamzaev described the concept of financial investigation as a comprehensive study of the financial aspects of crimes, emphasizing the need for additional knowledge for a comprehensive study and an objective assessment of financial transactions.11 in our opinion, when conducting a financial investigation of economic crimes, timely identifying ways to legalize proceeds from crime, studying the movement of funds and other property, taking immediate measures to seize such property, it is important to have knowledge and skills in the field of auditing financial, judicial and accounting, criminologic analysis. in this regard, it is advisable to introduce special courses on financial investigation, including parallel financial investigations, for law enforcement officers at the level of specialized educational institutions and institutions that provide departmental training and retraining. based on the results of studying international standards and the experience of foreign countries, we will consider how the process of financial investigation of crimes related to money laundering is regulated by national legislation. 9medvedev i.v.: computer forensics "forensic" and cybercrime in russia., prologue., 2013. -p. 6768. access mode: https://cyberleninka.ru/article/n/kompyuternaya-kriminalistika-forenzika-ikiberprestupnost-v-rossii. 10efimov v.s., brodunov a.n.: mechanisms of financial investigations in domestic practice. economics #5. 2015. -s. 55-58. access mode:https://cyberleninka.ru/article/n/mehanizmyfinansovyh-rassledovaniy-v-otechestvennoy-praktike. 11nigmadzhanov u.u., khamzaev d.d.: training law enforcement officers on financial investigations is a matter of time. // bulletin of the academy of the general prosecutor's office of the republic of uzbekistan. no. 4 (40)., 2019. // dosiup mode: internet:https://proacademy.uz/postfiles/sets/xc/4l/index.html. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 108 www.americanjournal.org according to the law of the republic of uzbekistan “on counteracting the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” dated august 26, 2004, it was established that a specially authorized state body analyzes information on transactions with cash or other property, in order to identify signs of legalization of proceeds from crime, if there are sufficient grounds or upon request, send to the authorized bodies materials on transactions with funds or other property related to proceeds of crime.12 however, this provision of the law does not fully cover the concept of financial investigation. it should be noted that in recent years in the republic of uzbekistan, special attention is being paid to the concept and procedure for conducting financial investigations. in this regard, a number of seminars and trainings had been organized with the participation of international experts, in particular, experts from the eurasian group (eag) on money laundering and terrorist financing, the un office on drugs and crime, the organization for security and cooperation in europe on the procedure for conducting financial investigations on money laundering and terrorist financing, as well as on interagency cooperation regarding these issues. consistent work is carried out in uzbekistan to combat the legalization of proceeds from crime, financing of terrorism and proliferation of weapons of mass destruction. in particular, on the basis of the norms and principles of international law, about 100 legislative and by-laws have been adopted, and a solid legal and institutional framework has been formed in this area. also, practical measures aimed at strengthening cooperation had been realized in cooperation with more than 20 authoritative international organizations.13 in order to increase the effectiveness of countering the legalization of proceeds from crime, the financing of terrorism and proliferation of weapons of mass destruction, there was adopted the decree of the president of the republic of uzbekistan no. up-6252 dated june 28, 2021. the decree brought into force the @development strategy for the national system of the republic of uzbekistan to combat the legalization of proceeds from criminal activity, financing terrorism and financing the proliferation of weapons of mass destruction”. according to the decree, the main tasks are to further strengthen the state policy in this area, ensure the implementation of the fatf standards and other international legal acts in national legislation, further increase the efficiency of government bodies, improve the skills of civil servants, as well as retrain employees of financial organizations that carry out transactions with cash and other property. 12 law of the republic of uzbekistan dated august 26, 2004, no. 660-ii “on counteracting the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” // national database of legislation as of january 16, 2019, no. 03/19/516/2484 and of october 5, 2020, no. 03/20/640/1348). http://old.lex.uz/docs/284542. 13 decree of the president of the republic of uzbekistan no. up-6252 “on approval of the strategy for the development of the national system of the republic of uzbekistan on combating the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” dated june 28, 2021. national database of legislation as of june 29, 2021, no. 06/21/6252/0617. http://old.lex.uz/docs/5482739. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 109 www.americanjournal.org in our opinion, financial investigation is the collection and study of information about any form of property, money, other assets or transactions and operations of individuals and legal entities for the following purposes: identification and monitoring of proceeds of crime, funds intended for the financing of terrorism, criminal items and other property, including the equivalent of property that can be transferred and confiscated by the state; compensation for harm caused by a crime; disclosure of criminal activity, identification of criminal schemes and connections, as well as disclosure of participants in the crime; establishment of other circumstances and evidence relevant to the case. bodies carrying out operational-search activities, pre-investigation checks and investigations are entitled to carry out financial investigations at any stage of their actions. particular attention should be paid to the involvement of relevant specialists and the establishment of investigation teams. it is advisable to establish the obligation to conduct a financial investigation for the following crimes: a) infliction of damage in large amount or receipt of criminal proceeds; b) money laundering, including if the main crime was committed outside the territory of uzbekistan; c) if the crime is of a terrorist nature, including the financing of terrorism. in other cases, financial investigations may be carried out by decision of the competent authorities, including with the priority of predicate crimes, for which the risk of money laundering is assessed as “very high” or “high” according to the results of the investigation. any act that generates criminal proceeds is a predicate crime (including robbery, bribery, tax evasion, murder for financial gain, human trafficking, arms or drug trafficking, etc.). in paragraph 2, the resolution of the supreme court of the republic of uzbekistan no.1 dated february 11, 2011 “on some issues of judicial practice in cases of legalization of proceeds from criminal activity” the concept of the predicate crime is defined. according to the resolution of the supreme court, criminal funds or other property are obtained through the commission of an intentional, socially dangerous act that preceded their legalization (the predicate crime). hence, regarding predicate crimes financial investigations can be conducted in the following ways: by means of carrying out operational-search activities; implementation of procedural actions in accordance with the code of criminal procedure; implementation of financial analysis and other measures by the specially authorized state body for combating the legalization of proceeds from crime, the financing of terrorism and proliferation of weapons of mass destruction; data collection using information resources; use of data from open sources of information, information resources of foreign countries and the internet; other measures provided for or not prohibited by law. in conclusion, it should be noted that the financial investigation is a set of measures aimed at ensuring the strengthening of the national system for combating money laundering and the financing of terrorism, identifying and investigating predicate crimes, money laundering and terrorist financing, increasing the effectiveness of the investigation, collecting and summarizing evidence, identifying sources of funds and other property, their arrest with subsequent confiscation. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 110 www.americanjournal.org conducting financial investigations includes operational-search activities to determine the proceeds of crime, the commission of procedural actions in accordance with the criminal procedure legislation, the conduct of financial analysis by a specially authorized body using information resources, information on the internet and can be carried out at any stage of criminal investigation. therefore, the main purpose of the financial investigation is to identify and ensure the confiscation of stolen funds, property, proceeds from crime, and other property for their subsequent confiscation. based on the above analysis, we consider it appropriate to propose the following definition of the term “financial investigation”: financial investigation is an activity of law enforcement agencies or other authorized bodies to investigate financial aspects of criminal activity, by collection and study of information about any form of property, money, other property obtained as a result of crimes committed through actions of individuals and legal entities. thus, in our opinion, not defining the concept of a financial investigation and the procedure for its conduct by legislation leads to an incomplete study of the financial aspects of criminal activity, detecting criminal proceeds and other property, as well as the confiscation of criminal proceeds and other property by the state/ the gaps if this area of study create conditions for the repeated commission of a crime by individual perpetrators or criminal groups. for the purpose of a comprehensive study of the financial aspects of economic crimes, full disclosure of proceeds of crime, ensuring their confiscation and full disclosure of the methods of the crime the following proposals are made: for the purpose of timely detection and suppression of cases of legalization of proceeds from crime, there is a need to develop of a regulatory document at the government level that establishes the procedure for conducting financial investigations, including parallel financial investigations; there should be introduced special courses on combating money laundering, terrorism financing and the proliferation of weapons of mass destruction in the curricula of higher educational institutions; there is a need for development of practical recommendations on combating the legalization of criminal proceeds, financing of terrorism and financing the proliferation of weapons of mass destruction, as well as the creation of special educational and methodological and other literature; there should be introduced curricula to improve the qualifications and professional training of employees of higher educational institutions, including civil servants, as well as those responsible for training in combating such crimes. the implementation of these proposals will serve to ensure the timely detection and seizure of funds and other property obtained by criminal means, the prevention of new crimes, and the suppression of the activities of criminal groups. list of references: 1. united nations convention against transnational organized crime (adopted by general assembly resolution 55/25 of november 15, 2000). //internet:https://www.un.org/en/documents/decl_conv/conventions/orgcrime.shtml. 2. fatf recommendations: international standards on combating money laundering, the financing of terrorism and the financing of proliferation of weapons of mass destruction, 2012 february, itmcfm, 2012. 3. fatf financial investigation guidelines: operational issues, june 2012, paris. https://www.un.org/ru/documents/decl_conv/conventions/orgcrime.shtml american journal of business management, economics and banking volume 15 august, 2023 p a g e | 111 www.americanjournal.org 4. law of the republic of uzbekistan dated august 26, 2004, no. 660-ii “on counteracting the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” //national database of legislation, 01/16/2019, no. 03/19/516/2484; october 05, 2020, no. 03/20/640/1348). http://old.lex.uz/docs/284542 5. decree of the president of the republic of uzbekistan no. up-6252 “on approval of the strategy for the development of the national system of the republic of uzbekistan to combat the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction” dated june 28, 2021 // national database of legislation, 06/29/2021, no. 06/21/6252/0617. http://old.lex.uz/docs/5482739 6. resolution of the plenum of the supreme court dated february 11, 2011 no. 1 of the republic of uzbekistan “on some issues of judicial practice in cases of legalization of proceeds from crime” // http://old.lex.uz/docs/1766551. 7. lebedev i.a., efimov s.v. financial investigations: russian practice and foreign experience. // auditor's sheets. 2018. no. 10. https://wiseeconomist.ru/poleznoe/42641-finansovye-rassledovaniya-rossijskaya-praktikazarubezhnyj-opyt 8. efimov v.s., brodunov a.n.: mechanisms of financial investigations in domestic practice. economy. 2015. no. 5. https://cyberleninka.ru/article/n/ mehanizmy-finansovyh-rassledovaniy-v-otechestvennoy-praktike. 9. teplov v., financial investigation. // litres., 2018., moscow. 10. nigmadzhanov u.u., khamzaev d.d.: training law enforcement officers on financial investigations is a matter of time. // bulletin of the academy of the general prosecutor's office of the republic of uzbekistan. 4 (40)., 2019. // https://proacademy.uz/postfiles/sets/xc/4l/index.html. 11. fedotov n.n.: forensics computer forensics. // m.: legal world, 2007. 12. medvedev i.v.: computer forensics "forensics" and cybercrime in russia. // prologue, 2013. // https://cyberleninka.ru/article/n/ kompyuternaya-kriminalistika-forenzika-i-kiberprestupnost-v-rossii. 13. kondratieva e.a., goryunov a.r.: on the issue of developing a scientific definition of financial investigations. // bulletin of the financial academy. 2003 no. 1 (25). 14. pimenov n.a.: financial investigations: main approaches. // bulletin of the financial academy. 2003. no. 1 (25). // https://cyberleninka.ru/ article/n/finansovye-rassledovaniya-osnovnye-podhody. 15. stakanova n.s., tatarovskaya t.e.: conceptual basis for financial investigations. // humanitarian scientific bulletin. 2020. №2.// https://zenodo.org/record/3763989#.ybxmu71bxpy. 16. the americans are calling us to reconnaissance. interview with william fox // rossiyskaya gazeta. 2005. n 3780. // https://rg.ru/2005/09/09/finrazvedka-usa.html. http://old.lex.uz/docs/284542 http://old.lex.uz/docs/5482739 https://cyberleninka.ru/ american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 54 www.americanjournal.org formation of financial results and its theoreticalmethodological aspects shergozieva mekhrinigor sherqul qizi graduate student of tashkent institute of chemical technology a b s t r a c t k e y w o r d s financial statements serve as a vital role into the inner workings of an enterprise or organization. they encapsulate the financial consequences of production, sales, management, and various other activities, culminating in either profit or loss. analyzing these results through the lens of financial statements forms the bedrock for informed decision-making at all levels. by delving into the nuances of financial results and the guiding principles of accounting standards, this article aims to illuminate the intricacies of financial statement preparation and the diverse reports they encompass. furthermore, it sheds light on the evolution, structure, and content of international financial reporting standards (ifrs), highlighting its significant role in the global financial landscape. within uzbekistan, the application of ifrs has gained significant traction, as evidenced by the growing number of organizations adopting this robust framework. the article examines the various financial reports submitted by ifrs, providing crucial insights into the financial health and performance of these entities. by exploring the compelling advantages of ifrs, including enhanced transparency and comparability, the article underscores its potential to foster a more stable and efficient financial ecosystem. however, it also acknowledges the ongoing challenges and emerging trends within the ifrs landscape, providing context for potential future developments. ultimately, understanding the intricate language of financial results, as elucidated through the prism of financial statements, empowers organizations to navigate the complex world of finance with greater confidence and achieve sustainable success. this knowledge not only informs critical decisions about their current state and efficiency but also paves the way for strategic planning and robust management practices, ensuring a vibrant and resilient future. financial results, profit and loss, types of financial statements, financial position, financial analysis, international standards, gaap, ifrs, management reporting, accounting, taxes, types of statements, stock market.. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 55 www.americanjournal.org introduction the increase or decrease in funds of an enterprise or organization during a certain reporting period during business activity is called financial results. the formation of financial results plays an important role in the organization of production, and economic and financial activities of the enterprise. to determine the financial results, it is necessary to compare the income with the cost of production. if the income exceeds the expenses, the financial result means a profit has been made. if the income is equal to the costs, then only the costs of production and sale of the product will be covered. if the costs of the enterprise exceed the income, it will suffer, that is, the financial result will be negative, and this, in turn, will harm the development of the enterprise. theoretical and methodological aspects of financial results are related to accounting, financial reports, financial analysis, distribution of financial results, and similar topics. they are one of the aspects that perfectly helps in learning of financial results. in the conditions of the market economy, it is not enough for economic entities to have only information. it is necessary to be able to use this information for processing, drawing conclusions, and making management decisions to improve production efficiency. the main sources of analysis of the company's financial situation are financial statements and accounting. in international practice, accounting is usually called "financial accounting", and the report is called “financial statement” and "management report". in uzbekistan, the concepts of "accounting" and "accounting report" are used in regulatory documents. the information provided in the financial (accounting) reports is very important. based on it, the state of financial resources, their rational distribution, the efficiency of use of fixed assets, preservation, and increase, achieved results, as well as correct and timely payment of taxes to the state budget are evaluated. reports on the financial status of an organization or institution for a certain reporting period help to use for these purposes: • to the management of the organization or institution in making timely business decisions; • for investors in the analysis of the investment potential of the enterprise; • banks when deciding on granting loans; • other enterprises in determining risks when concluding large commercial transactions; • tax authorities for taxation purposes.1 the main part each country has its own legal and regulatory framework, accounting activities, and different financial reporting standards. efforts are being made to unify and harmonize financial reporting standards in several countries to facilitate import-export operations and investments, to develop cooperation, including economic relations, and to increase the quality and transparency of financial reporting. one of the most widely used and recognized financial reporting standards are international financial reporting standards (ifrs) issued by the international accounting standards board (iasb), and the usa’s generally accepted accounting principles (gaap). the financial report submitted for listing on the world stock markets is prepared and presented based on the requirements 1g.s. djambakieva financial account and report, t.: "economics finance", 2019. 363 p. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 56 www.americanjournal.org of these two standards, including gaap requirements for listing on the us stock market, and ifrs for other stock exchanges.2 the history of the origin of ifrs goes back to the international accounting standards committee (iasc). initially, international accounting standards (ias) was developed and implemented by the international accounting standards committee (iasc) in 1973, but later in 2001, the international accounting standards board (iasb) was established and the ias standards were replaced by the ias. the main goal of the ifrs is to provide a single set of high-quality, global accounting standards that are principles-based, consistent, and adaptable to a changing business environment. standard ias no. 1 of ifrs is related to the presentation of financial statements. this standard guide how financial statements should be prepared and what they should contain. accordingly, international financial reporting forms include: 1. balance sheet 2. income statement 3. changes in equity statement 4. cash flow statement 5. explanatory notes3. in our country, these processes are carried out by the law of the republic of uzbekistan "on accounting". by article 22 of the law of the republic of uzbekistan on "accounting", "financial reporting consists of systematized information on the financial status of the accounting entity as of the reporting date, the financial result of its activities during the reporting period, and the movement of funds" the corresponding annual financial report consists of the following general forms of reports: 1. accounting balance – form 1 2. report on financial results – form 2 3. statement of cash flows – form 4 4. report on private capital – form 5 5. notes, calculations, and explanations.4 accounting of financial results in the republic of uzbekistan is important for studying the financial stability of enterprises and business activities. these reports help to identify fluctuations during the activities of enterprises and compare financial results. balance sheet: the balance sheet consists of two equal parts: assets and liabilities (table 1). assets are the composition and distribution of the enterprise's capital, which includes the company's profitable property, fixed assets, production equipment, buildings, transport, money in the cash register and accounts, commodity material reserves, receivables, and the like, while the passive shows the sources 2 aakarimov, akibragimov, nkrizayev, nmimamova " international financial report standards ” t .: “ nihal print”, 2021. 7 p. 3 aakarimov , akibragimov , nkrizayev , nmimamova " international financial report standards ” t .: “ nihal print”, 2021. 15 p. 4accounting _ account "about". uzr article 22 of the law no. orq-404 dated 13.04.2016 https://lex.uz/ru/docs/2931253 https://lex.uz/ru/docs/-2931253 https://lex.uz/ru/docs/-2931253 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 57 www.americanjournal.org of formation of the assets.5 assets must always equal liabilities. if there is an inequality, it indicates that mistakes were made in financial report. report on financial results: this form shows the details of the financial results of the company's activities, and the report divides the data into two periods, that is, it is filled in for the current reporting year and the reporting year of the previous year. (table 2) statement of cash flows: information on cash flows and financial transactions during the reporting period is given and the following types of activities determine them: ➢ operational activity ➢ investment activity ➢ financial activity this type of report is important for studying the financial stability of an enterprise or business. statement of equity provides information on a company's equity and its changes. this report helps to control the private capital of enterprises, analyze its changes, and increase their financial stability. equity is based on the principle of double-entry bookkeeping and is maintained based on this equation:6 assets = equity + liabilities these forms help in analyzing and developing the financial results of enterprises. financial reports are aimed at increasing the financial stability of enterprises and ensuring their development in the conditions of new economic relations. organization and management of accounting should be based on general rules accepted and implemented by all participants of economic activity. these rules are governed by state-level legislation and regulations. regulatory documents determine the procedure for regulating, organizing, and maintaining accounting for all enterprises and organizations that are legal entities. as accounting should be carried out by the rules and standards, in the republic of uzbekistan, the abovementioned financial reports are conducted based on the national accounting standards (nas) developed by the ministry, and according to them, annual financial reports are carried out by the following standards ❖ accounting balance no. 15 nas ❖ report on financial results no. 3 nas ❖ statement of cash flows no. 9 nas ❖ report on private capital no. 14 nas 7 2020 of the president of the republic of uzbekistan to provide foreign investors with the necessary information environment and expand access to international financial markets by accelerating the transition to international standards of financial reporting, as well as to improve the system of training 5 aakarimov , jekurbanbayev , sajumanazarov " accounting account " t .: " economy-finance ", 2019. 6 aakarimov , jekurbanbayev, sajumanazarov " accounting account " t .: " economy-finance ", 2019. 7 uzbekistan republic accounting report national standards https://lex.uz/ru/nsbu https://lex.uz/ru/nsbu american journal of business management, economics and banking volume 20 january, 2024 p a g e | 58 www.americanjournal.org accounting and auditing specialists according to international standards decision no. pq-4611 dated february 24 "on additional measures for the transition to international financial reporting standards" was signed. in this regard, joint stock companies, commercial banks, insurance organizations, and legal entities included in the category of large taxpayers will organize accounting based on ifrs from january 1, 2021, and prepare financial statements based on ifrs from the end of 2021. except for legal entities for which earlier terms of transition to ifrs are provided8. this law was developed to provide foreign investors with a transparent information environment and to expand the opportunities for the country's enterprises to enter international markets. to date, the ministry of finance of the republic of uzbekistan has provided a list of organizations to which the ifrs should be fully applied, which includes a total of 469 organizations: banks – 32; insurance companies – 40; shareholding societies – 170; large taxpayers 2279. table 1 8 uzbekistan republic president decision pq-4611 dated 24.02.2020 https://lex.uz/docs/-4746047 9 https://7universum.com/ru/economy/archive/item/14811 accounting balance form no. 1 unit of measurement, thousand soms indicator name string code at the beginning of the reporting period by the end of the reporting period 1 2 3 4 active i. long-term assets basic tools: initial (reset) value (0100, 0300) 010 955701.16 1349709.53 depreciation amount (0200) 011 146843.11 292278.89 residual (balance) value (lines 010 011) 012 808,858.05 1,057,430.64 intangible assets: initial value (0400) 020 depreciation amount (0500) 021 residual (balance) value (lines 020 021) 022 long-term investments, total (line 040+050+060+070+080) 030 securities (0610) 040 investments in subsidiaries (0620) 050 investments in subsidiaries (0630) 060 investments in enterprises with foreign capital (0640) 070 other long-term investments (0690) 080 installation equipment (0700) 090 capital investments (0800) 100 long-term receivables (0910,0920,0930,0940) 110 long-term deferred expenses (0950, 0960, 0990) 120 total for section i (line 012+022+030+090+100+110+120) 130 808,858.05 1,057,430.64 https://lex.uz/docs/-4746047 https://7universum.com/ru/economy/archive/item/14811 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 59 www.americanjournal.org ii. current assets inventory, total (line 150+160+170+180) 140 577,077.00 320,381.00 production stocks (1000, 1100, 1500, 1600) 150 95688.00 187401.00 work in progress (2000, 2100, 2300, 2700) 160 481389.00 132980.00 the finished product (2800) 170 goods (difference of 2900 from 2980) 180 future period expenses (3100) 190 deferred expenses (3200) 200 debtors, total (line 220+240+250+260+270+280+290+300+310) 210 3,453,987.29 455,576.73 of which: expired* 211 accounts payable (difference between 4000 and 4900) 220 2954562.22 debt of segregated units (4110) 230 branch and dependent economy of societies debt (4120) 240 bonuses given to employees (4200) 250 vouchers issued to suppliers and contractors (4300) 260 5548.00 10842.60 to the budget taxes and another mandatory payment according to blob fees (4400) 270 21743.00 purposeful state savings and insurance according to blob fees (4500) 280 debt of the founders on shares to the authorized capital (4600) 290 employees' debt for other operations (4700) 300 247504.07 252904.13 other receivables (4800) 310 224630.00 191830.00 funds, total (line 330+340+350+360), including: 320 186,271.23 71,727.78 cash on hand (5000) 330 the account is a book in the account of money funds (5100) 340 186271.23 71727.78 funds in foreign currency (5200) 350 other cash and equivalents (5500, 5600, 5700) 360 short-term investments (5800) 370 other current assets (5900) 380 total for part ii (line 140+190+200+210+320+370+380) 390 4,217,335.52 847,685.51 total on balance sheet assets (line 130+390) 400 5,026,193.57 1,905,116.15 passive i. sources of own funds authorized capital (8300) 410 117226.50 117226.50 added capital (8400) 420 reserve capital (8500) 430 purchased private shares (8600) 440 retained earnings (uncovered losses) (8700) 450 3602816.89 772656.07 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 60 www.americanjournal.org source: balance sheet (annual 2022) is presented for the article by "intechlines" llc target income (8800) 460 provisions for future expenses and payments (8900) 470 total for section i (line 410+420+430440+450+460+470) 480 3,720,043.39 889,882.57 ii. obligations long-term liabilities, total (line 500+520+530+540+550+560+570+580+590) 490 282,150.10 390,854.27 including long-term payables (line 500+520+540+560+590) 491 0.00 0.00 mol delivery givers and contractors long term debt (7000) 500 separated to divisions long-term debt (7110) 510 branch and dependent economy to societies longterm debt (7120) 520 long-term deferred income (7210, 7220, 7230) 530 tax and another mandatory payment according to long-term delayed obligations (7240) 540 other long-term delayed liabilities (7250, 7290) 550 notes from buyers and customers (7300) 560 long-term bank loans (7810) 570 long-term debts (7820, 7830, 7840) 580 282150.10 390854.27 other long-term payables (7900) 590 current liabilities, total (lines 610+630+640+650+660+670+680+690+700+710+ +720+730+740+750+760) 600 1,024,000.08 624,379.31 including current payables (lines 610+630+650+670+680+690+ +700+710+720+760) 601 893,021.77 330,811.31 of which: past due current payables* 602 loans to suppliers and contractors (6000) 610 1253.10 14547.60 loan to segregated units (6110) 620 branch and dependent economy to societies debt (6120) 630 deferred earnings (6210, 6220, 6230) 640 tax and another mandatory payment according to delayed obligations (6240) 650 other deferred liabilities (6250, 6290) 660 points received (6300) 670 822000.00 186000.00 debt for payments to the budget (6400) 680 24917.67 87574.80 insurance debt (6510) 690 6851.00 14574.43 purposeful state to savings payments according to debt (6520) 700 debts to founders (6600) 710 to work right to pay according to debt (6700) 720 38000.00 18720.00 short-term bank loans (6810) 730 short-term loans (6820, 6830, 6840) 740 long-term obligations current part (6950) 750 130978.31 293568.00 other payables (except 6950 6900) 760 9394.48 total for part ii (lines 490+600) 770 1,306,150.18 1,015,233.58 total on-balance liabilities (line 480+770) 780 5,026,193.57 1,905,116.15 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 61 www.americanjournal.org table 2 report on financial results form no. 2 measurement unit, thousand soms indicator name string code at this time last year during the reporting period revenues (profits) costs (damages) revenues (profits) costs (damages) 1 2 3 4 5 6 net income from the sale of products (goods, work, and services). 010 4843581.13 x 3741427.86 x cost of sold products (goods, work, and services). 020 x 1086212.83 x 3039993.41 gross profit (loss) from the sale of products (goods, work, and services) (lines 010-020) 030 3,757,368.30 0.00 701,434.45 0.00 period expenses, total (line 050+060+070+080), including: 040 x 443,559.00 x 467,280.00 selling expenses 050 x x administrative expenses 060 x 288742.00 x 314810.00 other operating expenses 070 x 154817.00 x 152470.00 expenses that will be deducted in the future from the taxable profit of the reporting period 080 x x other income from the main activity 090 x x profit (loss) of the main activity (line 030040+090) 100 3,313,809.30 0.00 234,154.45 0.00 income from financial activities, total (line 120+130+140+150+160), including: 110 24,841.00 x x income in the form of dividends 120 x x income in the form of interest 130 x x income from financial leases 140 x x income from exchange rate differences 150 24841.00 x x other income from financial activities 160 x x financial activity expenses (line 180+190+200+210), including: 170 x 43,316.00 x 106,150.27 expenses in the form of interest 180 38475.00 106150.27 expenses in the form of interest on financial leases 190 x x losses from exchange rate differences 200 x 4841.00 x other expenses on financial activities 210 x x profit (loss) of general economic activity (lines 100+110-170) 220 3,295,334.30 0.00 128,004.18 0.00 contingent profits and losses 230 profit (loss) before paying profit tax (lines 220+/-230) 240 3,295,334.30 0.00 128,004.18 0.00 profit tax 250 x 23917.67 x from profit other taxes and other mandatory payment 260 x x net profit (loss) of the reporting period (lines 240-250-260) 270 3,271,416.63 0.00 128,004.18 0.00 source: report on financial results (annual 2022) is presented for the article by "intechlines" llc american journal of business management, economics and banking volume 20 january, 2024 p a g e | 62 www.americanjournal.org summary the main sources of analysis of the company's financial situation are financial statements and accounting. the financial results account is the main part of the financial account. the information provided in the financial (accounting) reports is very important. based on it, the state of financial resources, their rational distribution, efficiency of use of fixed assets, maintenance, as well as correct and timely payment of taxes are evaluated. this article discusses the difference between international and national financial performance and its structure and helps to explore the relationship between theoretical and practical experiences in this field. the financial performance report is of great help in studying and evaluating the financial performance of export-import transactions and this in turn contributes to the development of the country. the accounting of financial results also plays an important role in calculating the increase or decrease in equity during the period of activity of economic entities. references 1. g.s. djambakieva financial account and report, t.: "economics finance", 2019. 363 p. 2. a.a.karimov, a.k.ibragimov, n.k.rizayev, n.m.imamova "international financial report standards ” t .: “ nihal print”, 2021. 7 p. 3. a.a.karimov , a.k.ibragimov , n.k.rizayev , n.m.imamova "international financial report standards ” t .: “ nihal print”, 2021. 15 p. 4. accounting _ account "about". uzr article 22 of the law no. orq-404 dated 13.04.2016 https://lex.uz/ru/docs/-2931253 5. a.a.karimov , j.e.kurbanbayev , s.a.jumanazarov "accounting account" t .: "economyfinance", 2019. 7 p. 6. aakarimov , jekurbanbayev, sajumanazarov "accounting account" t .: "economy-finance", 2019. 14 p. 7. uzbekistan republic accounting report national standards https://lex.uz/ru/nsbu 8. uzbekistan republic president decision pq-4611 dated 24.02.2020 https://lex.uz/docs/-4746047 9. https://7universum.com/ru/economy/archive/item/14811 https://lex.uz/ru/docs/-2931253 https://lex.uz/ru/nsbu https://lex.uz/docs/-4746047 https://7universum.com/ru/economy/archive/item/14811 american journal of business management, economics and banking issn (e): 2832-8078 volume 12, | may, 2023 p a g e | 213 www.americanjournal.org ensuring the economic security of the banking system in the republic of uzbekistan ismailova nasiba komildjanovna tashkent institute of finance, department of “finance”. uzbekistan, tashkent city e-mail: ismailovank1275@gmail.com a b s t r a c t k e y w o r d s this article is devoted to the socio-economic nature of bank security, external and internal threats to the economic security of banking business, economic security indicators of the banking system, the degree of protection of financial interests of banks by the central bank, the level of competition in the banking market in the country, the central bank analyzed the quality level of regulation and control of banking activities, the level of capitalization of the state banking system, indicators of financial security, including the budget deficit, the stability of the country’s national currency. also, attention is paid to the reforms implemented by the central bank in the republic of uzbekistan to improve the economic security of the banking system. economic stability, economic security, external and internal threats to the economic security of banking business, indicators of the level of economic security of the banking system, the level of competition in the banking market, the level of the quality of regulation and control of banking activities by the central bank, the state banking system level of capitalization, stability of the national currency, liquidity in the foreign exchange market. introduction: “development strategy of new uzbekistan for 2022-2026” aimed at creating the necessary politicallegal, socio-economic and scientific-educational foundations for the reforms to be implemented in our country in the next five years based on the principle “from action strategy to development strategy” “about” was approved by the decree of the president of the republic of uzbekistan no. pf-60 of january 28, 2022. in this development strategy, great attention is paid to the economic security of the state in the country [1]. the economic security of the state is considered a separate element of the economic system that ensures the security of the state, protecting the society and the state from internal and external threats and risks in the economic sphere. protection of human vital needs and interests is understood. the banking sector plays an important role in ensuring the effective functioning of the national economy. the banking system controls a large part of monetary resources, ensures their movement, distribution and redistribution, helps the emergence and development of financial and economic relations between economic entities. inadequate performance of the main functions of the banking american journal of business management, economics and banking volume 12 may, 2023 p a g e | 214 www.americanjournal.org system disrupts economic relations between economic entities and is considered one of the main threats to the country’s economic and national security. in a general sense, the financial and economic security of the banking system is the most effective use of financial resources to ensure the stable operation of the bank, and the prevention of threats affecting the stability of the banking system. 2. research methodology scientific observation, analysis and synthesis methods are effectively used in the article. also, the indicators for assessing the bank security of the country recommended in the regulatory documents of the international monetary fund (imf), the world bank (the world bank) were used. 3. analysis and results the main goal of ensuring the economic security of the banking system is to achieve the maximum stability of its activity, as well as to create the basis and prospects for the development of the banking system regardless of objective and subjective threat factors, this is especially true in the real conditions of unexpected financial situations. the greater risk of the banking sector is related to the loss of the bank’s own resources and income, or the occurrence of additional costs as a result of the implementation of certain activities, financial operations. the risks of threats to the economic security of the credit and banking sector are diverse, and we can study them by dividing them into external and internal parts. table 1 types of threats to the economic security of banking business [2] external threats internal threats 1. threats arising from changes in the economic, political and social spheres of the country. 1. threats related to the risk of transferred credit policy of banks. 2. threats caused by unfavorable market conditions. 2. threats caused by the low quality of bank management. 3. threats related to corrupt situations in the banking sector. 3. threats related to disruption of the liquidity activity of the credit organization. 4. threats associated with fluctuations in world markets on a global scale. 4. threats related to violation of banking legislation. the level of economic security of the banking system is determined by: (we will consider some of their indicators) 1. level of competition in the banking market. in this regard, a number of works are being carried out in uzbekistan, currently, as of may 1, 2023, the number of commercial banks operating in the banking market of our country has reached 34, of which 2 commercial banks “apex bank” and “life bank” joint-stock companies in march 2023 received a license to operate. one of the main issues of banking theory is the optimal structure of the banking market. banking market structuring criteria can be objects of operations, customer groups, geography of banking activity, level of concentration of banks, etc. according to the decree of the president of the republic of uzbekistan dated may 12, 2020 “on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025” no. pf-5992, the reform of the banking sector in the republic of uzbekistan as one of its main directions, complex transformation of commercial banks with a state share, introduction of modern standards of banking american journal of business management, economics and banking volume 12 may, 2023 p a g e | 215 www.americanjournal.org work, information technologies and software products, sale of a package of state shares in banks to investors with the necessary experience and knowledge on a competitive basis, as well as a state share reduction of the share of the state in the banking sector was determined by simultaneously reforming commercial banks and enterprises. in 2023, the process of privatization of large banks with a high state share will be brought to a logical conclusion, in particular, the shares of banks with a state share, village building bank, people’s bank, mikrokreditbank, contact bank, agro bank and nation bank, will be put up for public auction (ipo) and europe in cooperation with the bank of reconstruction and development, the transition to the active phase of transformation processes in asaka bank was determined. but it should be noted that at the global level, there is a general decrease in the number of banks, and the number and type of other financial institutions is increasing. 2. the level of quality of regulation and control of banking activities by the central bank. the bank supervisory committee of the central bank is a collegial body established on the basis of the requirements of the law “on the central bank of the republic of uzbekistan” and is permanently functioning. documents submitted by banks for approval by this committee in the direction of the authorization procedure, including registration of amendments to the charter of credit organizations, licensing of credit organizations, removal from the state register and initial approval and payment registration of organizations, as well as issues related to accreditation of the representative office and authorization of repo operations are considered. regarding the review of the financial situation, the results of remote and on-site studies on the fulfillment of the requirements of prudential standards in credit organizations, in particular, the results of the thematic studies on the existing risks in the banks activities will be discussed. it should be said here that prudential regulations were not observed, reserves against financial losses were not created, financial condition was insolvent, false information was provided to the central bank by distorting the report data. due to the fact that turkistonbank and hai-tek banks had licenses to carry out banking activities, licenses were revoked from payment organizations such as “international eco pay”, “panda internet technology”, “ugnis” because they did not start their activities within the deadlines set by the law. table 2information on non-performing loans (npl) of commercial banks as of april 1, 2023 [3] billion soums № name of the bank credit portfolio non-performing loans (npls) share of problem loans in total loans total 408 167 14 342 3,5% state-owned banks 334 767 12 920 3,9% 1. agrobank 47 866 1 908 4,0% 2. asaka bank 37 002 1 617 4,4% 3. mortgage bank 32 679 969 3,0% 4. people’s bank 21 758 2 249 10,3% 5. village building bank 20 627 926 4,5% other banks 73 400 1 422 1,9% 7. ravnak bank 309 236 76,5% 8. madad invest bank 196 27 13,8% 9. eron soderot bank 20 1,2 6,1% 10. o‘zagroeksportbank 0,5 0,4 80,4% 11. trast bank 3 706 199 5,4% 12. tenge bank 2 821 95 3,4% american journal of business management, economics and banking volume 12 may, 2023 p a g e | 216 www.americanjournal.org if we look at the data on non-performing loans (npl) of commercial banks, we can see that the share of non-performing loans in total loans is higher in state-owned banks than in other owned banks, i.e. compared to total loans, it is 3.9%, 12,920 billion soums, while in other banks this figure is 1.9%, 1,422 billion soums. most of the problem loans are accounted for by preferential loans. ti jo2-rasm. figure 1. information on non-performing loans (npl) of commercial banks with a state share, billion soums [3]i023 preferential lending (loans with interest rates lower than market interest rates) and directive lending (loans determined by local government bodies and state agencies) are being used, which have a negative impact on the competitive environment and cause inefficient distribution of financial resources. 60% of the loans allocated in the banking system correspond to loans allocated on the directive basis, and due to the influence of this factor, the share of problem loans in the loan portfolio of commercial banks remains at a high level. as of 2022, the share of problem loans in uzbekistan (4.9 percent) will be higher than that of the commonwealth of independent states (cis) countries (5.9 percent) and the countries of central asia and the caucasus (5.2 percent). was below average. in industry and agriculture, problem loans have increased significantly. 3. capitalization level of the state banking system the priorities of the banking system reform strategy of the republic of uzbekistan for 2020-2025 are to increase the minimum requirements for the capital of banks and to attract strategic foreign investors with the necessary experience, knowledge and influence to the capital of banks with a state share. tabl 3 the degree of monadity of the total capital of the banking system [3] indicator name 01.04.2022 01.04.2023 billion soum share, in percent billion soum share, in percent tier i capital 65 465 86,0% 75 223 85,8% basic capital 65 270 85,7% 75 185 85,7% additional capital 195 0,3% 38 0,0% tier ii capital 10 677 14,0% 12 469 14,2% total regulatory capital 76 142 100% 87 692 100% level of capital adequacy 17,6% 17,2% level i capital monadity level 15,2% 14,8% american journal of business management, economics and banking volume 12 may, 2023 p a g e | 217 www.americanjournal.org it can be seen from these data that the level of capitalization of commercial banks in our country is increasing. in 2022, the size of the main capital of commercial banks will be 65 trillion. exceeded soums, by april 2023, this indicator will reach 75 trillion. more than soums. this is a positive situation. the initial results of the macro stress test showed that the banking system is stable. by the end of 2024, in the main and moderate scenarios, the level of capital adequacy of banks will be higher than the minimum regulatory capital standard (13 percent) and it shows that they can better withstand various shocks. however, in a dangerous scenario, that is, in the case of a sharp deterioration of the economy and a significant depreciation of the exchange rate, there is a high probability that the ratio of regulatory capital of the banking system will fall below the regulatory limit of 13 percent. significant credit losses and risk-adjusted asset growth may cause banks to fail to meet regulatory capital requirements. nevertheless, losses resulting from bank capital shortfalls do not pose a significant risk, and the banking system has sufficient protection to cover these losses. according to the newly established regulation, the value of the minimum authorized capital for all commercial banks was set at 100 billion soums. as a result, all banks, especially private banks, increased their capital in order to fulfill the new regulatory requirement set by the central bank. figure 2. the minimum amount of charter capital of commercial banks to be formed by 20232025 [4] in 2022, the capital adequacy ratio increased sharply. assets of banks with a large state stake have grown rapidly thanks to the government’s supportive lending programs. 4. stability of the national currency in previous periods, restrictions in the currency policy, distrust of the population towards the national currency, a relatively high level of inflation, as well as a lack of alternative savings instruments caused a high degree of dollarization of deposits in banks. in recent years, the provision of relatively high real interest rates in the economy, the stability of the national currency exchange rate and the high interest rates offered by banks on deposits in the national currency serve to increase the deposits in the national currency [5]. during 2023, the decrease in aggregate demand and the high level of regulated price increases will have a downward effect on the formation of prices in consumer markets, and pressures on the exchange rate due to fiscal incentives and external factors can create price-increasing effects. taking into account the above factors, the inflation rate is forecast to be around 7-8 percent this year [6]. american journal of business management, economics and banking volume 12 may, 2023 p a g e | 218 www.americanjournal.org 4. conclusion and suggestions the following conclusions can be drawn here. a number of measures are being implemented to improve the economic security of the banking system, including: ➢ the central bank is improving the quality of control over the activities of banking institutions and continuous monitoring is being carried out, one of the main elements of the inflation targeting regime is the openness of the decisions made in the monetary and credit sphere and ensuring transparency in this regard [7]. ➢ the development of an effective communication policy and timely communication of decisions made in the field of monetary policy to the general public in an understandable language are of great importance in the formation of inflationary expectations of the population and business entities [8]. ➢ it should be noted that in order to continuously ensure liquidity in the domestic currency market, the institute of market maker was introduced in our country, and 2 commercial banks are operating as market makers in the domestic currency market. despite the benefits granted to commercial banks that have received market maker status, their number is not increasing significantly [9]. based on the conclusions, the following recommendations can be made: ➢ it is necessary to develop measures by the central bank to increase the activity of commercial banks as “market makers” and their role in determining the exchange rate [10]. ➢ the central bank should constantly maintain the inflation targeting system, because the formation of short-term and long-term expectations among the population and businesses is directly related to compliance with the inflation target discipline of the central bank. ➢ gradual elimination of the methods of preferential lending (loans with interest rates lower than market interest rates) and directive lending (loans determined by local government bodies and state agencies), which have a negative impact on the competitive environment and cause inefficient distribution of financial resources. it is necessary to take steps to abandon the stage [11]. literature 1. decree no. pf-60 of the president of the republic of uzbekistan dated january 28, 2022 “on the development strategy of the new uzbekistan for 2022-2026”. 2. petrova olga sergeevna economic security of the banking system//bulletin of the pskov state university. economy. right. control. 2015. url: https://cyberleninka.ru/article/n/ekonomicheskaya-bezopasnost-bankovskoy-sistemy 3. the official reports of data base the central bank of the republic of uzbekistan in 2023 www.cbu.uz 4. law of the republic of uzbekistan on banks and banking activities. 5. ismailova n. k. importance of financial security in financial globalization //экономика и бизнес: теория и практика. – 2019. – №. 4-3. – с. 37-40. 6. ismailova n. k. issues of providing investment security in uzbekistan //международный журнал гуманитарных и естественных наук. – 2019. – №. 5-4. – с. 122-125. 7. исмаилова н. к. обеспечение бюджетно-налоговой безопасности-залог безопасности национальной экономики //экономика и бизнес: теория и практика. – 2018. – №. 1. – с. 5053. https://cyberleninka.ru/article/n/ekonomicheskaya-bezopasnost-bankovskoy-sistemy http://www.cbu.uz/ american journal of business management, economics and banking volume 12 may, 2023 p a g e | 219 www.americanjournal.org 8. ismailova nasiba komildjanovna. (2022) public debt and financial security of uzbekistan. e conference zone. 2022/6/11. 107-109. 9. sharapova, m. a. (2021). issues of improving the financing of public education in the republic of uzbekistan. theoretical and applied science, (4), 115-119. 10. sharapova, m. a. (2020). practice of budget financing of public education system. scientific electronic journal "international finance and accounting". no. 3 11. sharapova, m. a. (2018). the role of budget control in the use of social spending. economics and business: theory and practice, (1), 101-104. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 120 www.americanjournal.org enhancing marketing strategy and role of compliance and its impact on monetary development salman abed hadi1, basim hanoon jasim 2, kawther jawad yousif 3 al-qadisiyah university / college of law1 al-qadisiyah university / college of law2 al-qadisiyah university / college of science3 salmanalassdi@gmail.com1 basimhhanon@gmail.com2 omhaider71234@gmail.com3 a b s t r a c t k e y w o r d s marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) are considered a basic activity that works to raise the efficiency of monetary development, which affects monetary development (md) through compliance (co) as an intermediary. marketing strategy works to raise the efficiency of companies (co) in multiple ways. in this study, the researcher focuses on obtaining positive, supportive results. in this study, the focus is on the dimensions of marketing (proactiveness-pr, focus-fo and innovativenessin), and their impact on monetary development (md) through compliance (co) as a mediator. this study also contributed significantly to raising and increasing the profits of institutions. marketing it is a set of processes or activities that work to discover customers’ desires and develop a group of products or services that satisfy their desires and achieve profits for the organization within an appropriate period of time. it focuses on the importance of the impact of marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) on monetary development (md) through employee compliance (co) in working within the organization to achieve employee satisfaction. the researcher relies on the most advanced methods in a more effective way. the researcher in this study also identifies the problems facing the organization and finds appropriate solutions to them. the number of the target sample was (160), the error was (4), and the questionnaire was correct (156). the marketing, proactiveness, focus, innovativeness, compliance, monetary development. american journal of business management, economics and banking volume 22 march 2024 p a g e | 121 www.americanjournal.org statistical analysis used spss & smarrtpls 4 and a likert scale of 7, and the target sample was al-tariq food products company/iraq. the number of results (6) were positive, and (1) was non-positive. introduction companies' reliance on marketing according to modern methods is the basis for expanding the growth of organizations, at the same time (kadhim & ahmad, 2019). the researcher emphasizes compliance (co) because it is a mediator variable through the employees present in the companies kadhim & ahmad (2021), based on the data, classifying it, and then analyzing it to reach the necessary results. the researcher tariq et al (2022), also emphasized monetary development (md), and it was considered an essential factor in this study. attention was also given to employees' compliance in using modern technology and to gain their satisfaction (hossain et al., 2020). the researcher is interested in emphasizing gaining the satisfaction of the company's employees, as well as the basic role that supports the organization through employees in transferring modern technology to institutions (kong et al., 2021). organizations are always looking for continuous improvement in their performance in order to compete with other companies. this study focuses on the effectiveness of the marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) dushi et al (2019), on monetary development (md). the researcher kadhim & ahmad (2022), collected basic information kong et al., 2021), and used a targeted sample to reach the desired results. he also emphasized the role of employees within organizations through their work as a single team to achieve the services required of them. encourage wong et al (2020), the use of marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) to influence monetary development (md). the researchers also focused on the importance of compliance (co) in transferring up-to-date information among the organization's departments. the researchers wong et al (2020), talked about the impact of marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) on monetary development (md) to gain the satisfaction of employees in achieving their life desires (ebrahim, 2020). compliance (co) is considered one of the variables in transferring modern methods through permanent training in order to achieve continuous improvement to raise the efficiency of monetary development (md). marketing organizations suffer from weakness in their performance as well as a lack of provision of monetary development (liu et al., 2021). therefore, the aim of this study is to determine the impact of marketing dimensions (proactiveness-pr, focus-fo and innovativenessin) on monetary development (md) and the effectiveness of compliance (co) in expanding performance to develop employees in performing their work (alzoubi et al., 2022). 1. literature review the literature review focused on studying marketing and how to develop it in all fields. the researcher colicev et al (2019), was encouraged in his study on developing marketing for the better. according to the researcher jones & tadajewski (2017), the marketing dimensions are among the important foundations in increasing the efficiency of companies. the researcher erlando et al (2020) ), emphasized the marketing of various goods and merchandise to satisfy employees working in institutions. the study conducted by et al., 2020), is considered one of the best studies on marketing, american journal of business management, economics and banking volume 22 march 2024 p a g e | 122 www.americanjournal.org in which he encouraged organizations to compete with each other. positive marketing is the one who relies on modern means to perform it, fulfill the desires of employees, and achieve the necessary monetary profits. marketing is the main interface to the aspirations of countries around the world towards progress because it contributes to raising the efficiency of countries that work to pay attention to marketing. the various dimensions of marketing contribute to supporting the organizations’ production and generating cash savings that help them face the difficult circumstances to which they are exposed. in their study, the researchers ejemeyovwi et al (2021), are considered to have presented a sophisticated study on marketing efficiency, and emphasized the use of continuous improvement and permanent training for employees working in the company. compliance is one of the variables that encourage workers in institutions to expand monetary development. the researcher zafar et al (2021), encouraged the importance and duties of employees in their institutions and their performance as a team cooperating with each other. employees are the basis for realizing their desires and creating a satisfying life for them in the face of difficult circumstances. the researcher yap et al (2023), and the researcher's study hanson & sigman (2021), also emphasized the importance of employee compliance in achieving competition between companies and achieving monetary profits. monetary development is necessary for every company to increase its work among organizations to achieve basic services for employees in order to meet their basic needs. there are many previous studies that emphasized the necessity of providing monetary development, including hanson & sigman, 2021), which is considered one of the first and advocates for this. there is a study conducted by the researcher d.a.t. (2020), on the importance of the role of monetary development in supporting the organization and improving its production. the researcher masiero & bailur (2021), emphasized the expansion of the study of monetary development because it achieves many positives for the marketing of goods and merchandise. both masiero & bailur (2021), and bhende et al (2020), called for providing the necessary abundance of monetary development because it helps satisfy employees, achieve their desires, and improve their lives in life. the study on the importance of marketing dimensions conducted by agostinelli & sorrenti, 2018), is considered supportive of organizations in increasing monetary development and organizations’ entry into competition to achieve profits (israr et al., 2020). 2. theoretical framework 3.1. proactiveness it is what causes the company to reduce its prices due to the sudden influx of natural resources that are available to it, while interactive marketing is what forces small companies to reduce the prices of their expensive products due to the sudden stagnation in the buying and selling movement (fatimah et al., 2020). some people wonder what is the importance of proactive marketing versus reactive marketing? since companies implement many specific marketing strategies, and this is if they are adding distribution channels or a new production line, we find that when marketing managers implement some marketing strategies of their own free will, they use proactive marketing, and when some of the specific dynamics in the industry occur, represented by a change in prices (tay et al., 2022). competitiveness or introducing some new technologies, and we find that in this case people need marketing professionals to use interactive marketing in order to ward off the negative effects that may be possible on sales and profits. the majority of companies use interactive marketing and questionnaires. we find that proactive marketing is very common in new industries, and this is due american journal of business management, economics and banking volume 22 march 2024 p a g e | 123 www.americanjournal.org to the lack of competition or the absence of any of it in the market. we find that the leading company is the one that is involved in making all marketing decisions, which is be proactive (de la porte & jensen, 2021). however, we find that competitors are gradually entering the market because of the success it provides, and this is by following some business plans that are mostly represented by them, and from here we find that reactive marketing is what is done by new competitors. when time passes in the company, we find that the establishment of industries sometimes needs to change its marketing strategies, and this is through the establishment of many competitors in that industry, as we find that any of the competitors may try to establish itself as a service leader or increase (nguyen, 2021). departments related to customer service, as experienced marketers always expect the leader of industries after moves to advance the company and expand the ability to provide its own services. in the end, the manager needs to use many diverse interactive marketing strategies, especially when competitors try to target related customers. by the leader. there are some factors that affect the company's need to become more interactive or proactive, and this is with marketing, as the economy can have influences on the company's marketing decisions. we find that a long recession may force the small factory that specializes in premium products to. it is distinguished by its high prices, provided that it lowers the prices of its products, and this is one of the interactive marketing steps (nuriman, 2021). in addition to this, legal officials may consider that the company’s advertisements are misleading, and this forces it to change its advertisements, which is one of the interactive marketing, as we find that otherwise, the sudden influx of available natural resources enables the company to reduce its prices, and this is one of the proactive marketing steps. other factors that can determine reactive and proactive marketing decisions include some environmental and political changes, as well as technological changes specific to the industry (anton & afloarei, 2020). 3.2. focus meetings held with a limited group of participants for the purpose of discussion. the group's goal is not to reach consensus or agreement on the topic. instead, it seeks to identify and understand customers' perceptions of a brand or product. it is one of the strategies that an organization uses to gain a competitive advantage in a sector or industry, by focusing on providing products and services to a specialized market or a specific category of customers (sugiarto, 2016). a focus strategy aims to serve a specific group of customers as best as possible, by focusing on a specific customer segment, product line, or geographic region. an example of a company that uses a focus strategy is coca cola, which manufactures sugar-free products (diet coke) to meet the needs of people who cannot consume sugar in large quantities. providing products and services at low costs to the target market. this strategy usually targets price-sensitive customers who want products of moderate or relatively high quality at reasonable prices. this strategy depends on providing distinct products and services to the target market. this strategy usually targets customers who want products with distinct and unique characteristics (qian et al., 2020). 3.3. innovativeness it is the process of creating new things to put on the market as products, processes or services. define innovation is the process of developing new and innovative marketing strategies and ideas aimed at achieving company goals and increasing profits and sales. innovation includes modification to marketing elements such as product design, product price, and methods of communicating with american journal of business management, economics and banking volume 22 march 2024 p a g e | 124 www.americanjournal.org customers. this modification aims to attract customers' attention in a different and innovative way. innovation can help a company discover and target new markets, which contributes to expanding the customer base and increasing revenues (sadiku-dushi et al., 2019). by providing distinctive customer experiences, marketing innovation can help retain existing customers and make them loyal to the company. expanding business activity into new geographic areas can have a positive impact on the growth and economic sustainability of the company. if the desired goals are not achieved, marketing innovation can help in reformulating and improving the brand to better meet customer needs and expectations. innovation is considered an important tool to achieve competitiveness in the market, improve company performance, and increase customer satisfaction. this shift towards innovation and innovation-based companies is due to the fact that companies now possess large resources, high technology, and technical and administrative expertise for dealing with innovation as a distinct activity in order to reach what is completely new (radical innovation or breakthrough) or partially (gradual innovation or improvement) (paul, 2020). the most important thing is that these companies have a strategic vision that enables them to achieve a competitive advantage through innovation, and what indicates this transformation is the large increase in resources allocated to research and development, as companies in basic sectors allocate more resources to research and development than to fixed equipment and factories. innovation in marketing refers to developing new and innovative ideas, products and strategies to engage customers and stay ahead of the competition. it involves identifying unmet customer needs, developing new products or services to meet those needs, and finding innovative ways to promote and distribute those products or services. marketing innovation can take many forms, including new technologies, unique brands, and innovative advertising campaigns. the goal of innovation in marketing is to create value for customers, build brand loyalty, and increase profitability. innovation in marketing is crucial because it helps businesses differentiate themselves from competitors, create unique experiences for their customers, and adapt to rapidly changing market trends. marketing innovation can help companies stay relevant and competitive in the industries in which they operate (kadhim & atiyah, 2024). it can also help companies identify new opportunities for growth and expansion. ultimately, innovation in marketing is essential to a company's long-term success and survival in today's highly competitive business environment. innovation in marketing plays a vital role in a brand's success and increasing its sales, as it helps to update and develop products and services and better respond to customer needs (ahmad et al., 2020). innovation in marketing also helps improve customer experience, increase their loyalty to the brand, enhance media and marketing outreach, and increase brand awareness. it also helps improve efficiency and effectiveness in using resources, improve productivity, and achieve financial profits for the company (tariq et al., 2022). 4. compliance define compliance it is the act of enforcing rules, laws and regulations. it applies to legal and regulatory requirements set by industry bodies, as well as to internal company policies. compliance includes implementing procedures to ensure that business activities comply with relevant regulations. regulatory compliance is a critical aspect of running any business, regardless of its size or industry (albadry et al., 2020). it refers to the process of ensuring that a company adheres to all relevant laws, regulations and guidelines set by the government or other regulatory bodies. the purpose of regulatory compliance is to protect consumers, employees and the environment, as well as maintain american journal of business management, economics and banking volume 22 march 2024 p a g e | 125 www.americanjournal.org the integrity of the financial system and promote fair competition. in this section we will provide an introduction to regulatory compliance, including its importance, key components, and common challenges. complying with regulations is essential for businesses to avoid costly fines, litigation and reputational damage. failure to comply can also result in legal and financial consequences, such as loss of licenses, permits and contracts, which may ultimately lead to the closure of the company. compliance also promotes transparency and accountability, which enhances the confidence of stakeholders, including customers, investors and employees. key components of compliance include understanding and tracking relevant laws and regulations, implementing policies and procedures to ensure compliance, training employees, monitoring and auditing compliance, and reporting any violations or incidents (hossain et al., 2020). compliance should also be integrated into the company's culture and values, and senior management must demonstrate its commitment to compliance. one of the most important challenges facing regulatory compliance is the complexity of regulations and their ever-changing nature. businesses must keep up with new laws and regulations, as well as changes to existing laws and regulations, which can be time-consuming and costly. another challenge is ensuring that all employees, including contractors and outside vendors, are aware of the regulations and comply with them. in addition, companies must balance compliance with other business goals, such as productivity and profitability. compliance with regulatory requirements is an important aspect of business operations. failure to comply can result in hefty penalties, loss of reputation, and even legal action. however, understanding the different types of regulatory compliance can be difficult, especially for new businesses. in this section we will discuss the different types of regulatory compliance and how companies can approach them (kong et al., 2021). environmental regulations are becoming increasingly stringent, and companies must adhere to them to avoid penalties and damage to the environment. compliance includes adhering to laws and regulations governing air quality, water quality, waste management, and hazardous materials. for example. failure to comply with environmental regulations can result in legal action, fines and damage to the environment. with the increasing use of technology, data privacy compliance has become an important aspect of business operations. companies must adhere to data privacy regulations such as the general data protection regulation. failure to comply with data privacy regulations can result in significant financial and reputational damage. therefore, companies must implement appropriate data privacy measures, including data encryption, access controls, and data deletion policies (wong et al., 2020). 5. monetary development economic development is sustained and coordinated actions taken by policymakers and corporate groups that contribute to enhancing the standard of living and economic health of a given region. also, economic development can refer to the quantitative and qualitative changes that the economy is witnessing. these actions can include multiple areas, including human capital, basic infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, security, literacy, among others (kadhim & jassmy, 2024). the concept of economic development differs from economic growth. while economic development refers to efforts to intervene in policies with the aim of ensuring the economic and social well-being of people. economic development is the process by which a nation improves the economic, political, and social well-being of its people. the term has been used frequently by economists, politicians, and others in the twentieth and twenty-first centuries ((kadhim & habeeb, 2024).). this concept has been around in the west for centuries. economic american journal of business management, economics and banking volume 22 march 2024 p a g e | 126 www.americanjournal.org development has a direct relationship with the environment and environmental issues. economic development and industrial development are often confused, even in some academic sources. while economic development is an endeavor of political intervention aimed at improving the economic and social well-being of people, economic growth is the phenomenon of market productivity and rising gdp. thus, as economist amartya sen points out, “economic growth is one aspect of the economic development process. in fact, data on the growth rate of a country's economy is not important to reflect an increase in the level of income of citizens or an increase in their well-being, at least in the short term (the growth rate usually indicates the size of the increase in the country's gross domestic product during an annual or quarterly period) (ebrahim, 2020). it is not possible in any way for the citizens of a country to feel an economic renaissance happening around them, or feel its impact on them within such a short period of time, but the high growth rates can be inferred from the country’s progress towards achieving prosperity for its people. in order to define economic development and know when improvement in people’s well-being and a rise in their standard of living will be achieved, we must first understand the concept of economic growth and define the country’s gross domestic product (liu et al., 2021). 6. hypotheses development hypotheses (7) dealt with the impact of marketing dimensions on monetary development, and the importance of compliance as a mediating factor. the number of these hypotheses is (7), as shown in figure 1. h1: relationship between proactiveness (pr) and monetary development (md). h2: relationship between focus (fo) and monetary development (md). h3: relationship between innovativeness (in) and monetary development (md). h4: relationship between proactiveness (pr) and compliance (co). h5: relationship between focus (fo) and compliance (co). h6: relationship between innovativeness (in) and compliance (co). h7: relationship between compliance (co) and monetary development (md). figure 1: framework american journal of business management, economics and banking volume 22 march 2024 p a g e | 127 www.americanjournal.org 7. method study it is necessary to study the role of marketing dimensions on economic development and explain the role of compliance as a mediator. therefore, it is necessary to improve the performance of organizations and increase their monetary gains. the company relies on marketing dimensions to increase economic development, and continuous training for employees works to raise their efficiency. studying the importance of compliance between companies in improving performance. this study used statistical analysis of data, spss & smartpls 4, and a likert scale 7 in the questionnaire form, and the target sample was al-tariq food products company/iraq (kadhim & ahmad, 2022). 8. analysis results statistical analysis, spss and smartpls 4, was used by the researcher to reach the results he collected from the data for the targeted sample. reliability and validity according to the desired results shown in table 1, showed that the results exceed 0.804, and (6) hypotheses were positive, and (1) was nonpositive (kadhim & hani, 2024). table 1: reliability validity items cronbach's alpha composite reliability average variance extracted (ave) pr 0.846 0.890 0.619 fo 0.948 0.960 0.828 in 0.816 0.872 0.583 co 0.839 0.885 0.607 md 0.804 0.865 0.565 in this study, the researcher, after great efforts in his work, achieved the desired results that are considered supportive of his research (alzoubi et al., 2022). 9. descriptive statistics these results provide us with the median for each sample of variables, and provide standard deviation for each sample. the following modern methods that contribute to developing research results give the number of observations and their magnitude (156), and number of paragraphs, and cramér-von mises pvalue, shown table 2. table 2: mean and std. deviation items no. mean std. deviation renk level pr 156 5.0461 1.18399 1 moderate fo 156 5.3842 1.05668 5 moderate in 156 5.2553 1.08505 4 moderate co 156 5.1325 1.12345 3 moderate md 156 5.1351 1.13151 2 moderate american journal of business management, economics and banking volume 22 march 2024 p a g e | 128 www.americanjournal.org spearman's correlation results can be obtained by statistical analysis of the results from the sample obtained to identify the type of relationship between the dimensions of marketing, monetary development and compliance. compliance as a mediator. significance 0.05. from table 3, the researcher found a positive relationship between the variables, shown table 3. table 3: spearman correlation analysis between variables items pr fo in co md pr pearson correlation 1 .474** .499** .355** .530** sig. (2-tailed) .000 .000 .000 .000 sum of squares and crossproducts 205.731 107.231 120.865 84.673 136.596 covariance 1.327 .692 .780 .546 .881 n 156 156 156 156 156 fo pearson correlation .474** 1 .512** .477** .541** sig. (2-tailed) .000 .000 .000 .000 sum of squares and crossproducts 107.231 248.397 136.199 124.923 153.263 covariance .692 1.603 .879 .806 .989 n 156 156 156 156 156 in pearson correlation .499** .512** 1 .502** .632** sig. (2-tailed) .000 .000 .000 .000 table 3: spearman correlation analysis between variables (continued) items pr fo in co md sum of squares and crossproducts 120.865 136.199 285.287 141.024 191.881 covariance .780 .879 1.841 .910 1.238 n 156 156 156 156 156 co pearson correlation .355** .477** .502** 1 .619** sig. (2-tailed) .000 .000 .000 .000 sum of squares and crossproducts 84.673 124.923 141.024 276.505 184.760 covariance .546 .806 .910 1.784 1.192 n 156 156 156 156 156 md pearson correlation .530** .541** .632** .619** 1 sig. (2-tailed) .000 .000 .000 .000 sum of squares and crossproducts 136.596 153.263 191.881 184.760 322.686 covariance .881 .989 1.238 1.192 2.082 n 156 156 156 156 156 **. correlation is significant at the 0.01 level (2-tailed). spss & smartpls 4, statistical results for matrix outer loadings, the results appear identical to the results in the standard model, figure 2, shown table 4. american journal of business management, economics and banking volume 22 march 2024 p a g e | 129 www.americanjournal.org table 4: results matrix outer loadings items co fo in md pr co1 0.788 co2 0.799 co3 0.783 co4 0.811 co5 0.748 fo1 0.888 fo2 0.934 fo3 0.910 fo4 0.918 fo5 0.900 in1 0.843 in2 0.897 in3 0.581 in4 0.781 in5 0.670 md1 0.832 md2 0.866 table 4: results matrix outer loadings (continued) items co fo in md pr md3 0.758 md4 0.790 md5 0.753 pr1 0.876 pr2 0.775 pr3 0.848 pr4 0.778 pr5 0.676 the researcher achieved discriminant validity results as required, as the results were higher than the results that followed immediately. the (6) hypotheses were positive, and (1) was non-positive, shown table 5. table 5: discriminant validity items co fo in md pr co fo 0.883 in 0.060 0.904 md 0.135 0.181 0.866 pr 0.118 0.022 0.086 1.842 american journal of business management, economics and banking volume 22 march 2024 p a g e | 130 www.americanjournal.org the results of hypotheses (6) are supportive and positive, and (1) was non-positive, see figure 2, that the dimensions of marketing affect monetary development, and the important role of compliance as a mediator, shown figure 2. figure 2: p-value (measurement model) it is shown figure 3, that marketing dimensions have a relationship with critical development and the importance of compliance as a mediator and shown table 6. figure 3: t-value (satrucracrul model) american journal of business management, economics and banking volume 22 march 2024 p a g e | 131 www.americanjournal.org table 6: relationship between variables hypothesis relationship p-value t-value results h1 pr md 0.667 10.279 accepted h2 fo md -0.068 1.106 non-accepted h3 in md 0.045 0.607 accepted h4 pr co 0.053 0.743 accepted h5 fo co 0.234 1.106 accepted h6 in co 0.560 8.569 accepted h7 co md 0.369 4.151 accepted 10. r-square (r2) through the study carried out by the researcher, he also communicated the results of r2 through spss & samartpls 4 to all variables. in which the results appear for the dependent factor and the mediator for (r2), see table 9. table 9: r-squared (r2) r-square r-square adjusted co 0.586 0.578 md 0.775 0.771 not: 0.19-0.33 is low, 0.33-0.67 is medium, and 0.67 and above is high (ahmed et al., (2020) 11. f-square (f2) the researcher used spss & smartpls 4 statistical analysis, in which the results are shown for the independent, dependent, and as a mediator for (f2), see table 10. table 10: f-square (f2) co fo in md pr co fo 0.066 0.000 in 0.443 0.136 md pr 0.002 1.332 not: 0.19-0.33, slow, 0.33-0.67, is medium, and 0.67, and above is high (ahmed et al., (2020) 12. conclusions 1. the researcher discussed the importance of the relationship between the dimensions of marketing and monetary development. 2. in this study, the researcher confirmed the existence of a relationship between marketing dimensions and compliance as a mediator. american journal of business management, economics and banking volume 22 march 2024 p a g e | 132 www.americanjournal.org 3. the researcher emphasized the use of the required information and data to clarify the importance of the impact of marketing dimensions on monetary development. 4. taking into account the variables that were used in this study and the importance of marketing dimensions in productive institutions. 5. implementing the marketing dimensions of monetary development leads to improving the organization's production through competition between companies. 6. the researcher encouraged the use of marketing dimensions in improving the performance of institutions through the use of modern technology in production. 13. recommendations 1. implementing marketing dimensions on monetary development in institutions achieves financial benefits and profits that help achieve basic goals. 2. adopting the method of advertising the efficiency of organizations through the use of continuous training and joint team work in the best ways. 3. the researcher in this study focused on using modern technology through the information and data he collected. 4. this study confirmed employees' compliance in implementing modern methods in order to provide the goods and services they need. 5. employee compliance has had a more effective role in increasing the monetary development of companies. references 1. ahmad, f., kadhim, s. a., hamid, n. a., ahmad, a, n, a., ruslan, r., rahman, n, a, a., r., abdullah, a, s., nawi, m, n, m. 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(2023). the role of financial inclusion in achieving financerelated sustainable development goals (sdgs): a cross-country analysis. economic researchekonomska istrazivanja , 36(3). 38. zafar, r., shamsinur, y., bekzod, s., & lola, b. (2021). monetary policy of the uzbekistan and its improvement ways in implementing. journal of contemporary issues in business and government, 27(1), 1551–1557. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 16 www.americanjournal.org accounting measurement under social responsibility and its reflection on performance and company value-applied study in a sample of iraqi industrial companies ahmed rahi abed 1, 1 department of accounting college of administration and economics, university of al-qadisiyah, iraq email: ahmed.alomrani@qu.edu.iq 1 zina adnan kareem 2, 2 department of finance and banking college of administration and economics, university of alqadisiyah, iraq zina.adnan@qu.edu.iq 2, maytham hazim azeez khzaee 3 3 university of al-qadisiyah, college of pharmacy maythim.hazim@qu.edu.iq 3 a b s t r a c t k e y w o r d s the purpose of the study is to clarify how social responsibility accounting contributes to a company's increased value. to this end, concepts of social responsibility, accounting for social responsibility, and company value are defined, and the significance of social responsibility accounting disclosure in the financial statements of industrial companies listed on the iraq stock exchange is stated. by using information from the yearly financial reports of a sample of iraqi industrial businesses registered on the iraq stock exchange a total of twenty-five companies finance seeks to increase the value of the company. where a sample of those businesses in total was chosen, and the sample accounted for 84% of the study population between 2011 and 2020. the study's practical results include the finding that each of the six independent factors significantly affected the company's worth at various points. regarding the research's suggestions, the most notable one is that industrial company managements need to be made aware of the significance of their commitment to disclosing social responsibility. american journal of business management, economics and banking volume 23 april 2024 p a g e | 17 www.americanjournal.org introduction the concept of social responsibility indicates that it represents a set of financial and non-financial decisions that the company must take either voluntarily, as a result of ethical and social considerations, or compulsorily, in accordance with legal requirements, in order to achieve its economic goals and achieve the social goals of the society in which it operates. social responsibility has emerged as a realistic result of the development of ideas and movements that aroused interest in protecting society and the consumer, as well as protecting the environment and natural resources in the society in which it operates. searching for a fresh edge in the market, which caused the majority of them to take on a distinct social role in order to ensure their continued existence in the market. this means that businesses must base the majority of their decisions on an ethical framework that restricts the harm that their operations cause to the environment, their employees, and the external society in which they operate. as a result, society as a whole has must base the majority of their decisions on an ethical framework that restricts the harm that grown more hopeful that these businesses will improve their quality of life and contribute to their growth and prosperity. 2. literature review 2-1 concept and importance of social responsibility: researchers and writers have differing views regarding the definition of social responsibility. for example, esfijani believes that social responsibility is the ongoing commitment made by businesses and entrepreneurs to support social and economic development while enhancing the standard of living for working-class people, their families, and the community at large. al-zurfi, on the other hand, believes that social responsibility has deep historical roots. the earliest sign of this idea's birth is the rise of labor unions and organizations following the industrial revolution, which started in the latter part of the eighteenth century. between the owners and the workers (abdullah, 2021, 17). through the introduction of the classical theory, which is predicated on the idea that an economic unit aims to maximize its profit by using all available resources and energy to accomplish its objective in the most efficient way possible while ensuring that its profitability is realized. this strategy was founded on the idea that economic units must act as representatives of the shareholders and the general public, which means they must make choices that result in a just balance for all parties involved— shareholders, employees, suppliers, consumers, and society at large. it enables the economic entity to fulfill its profit-making objective in (al-zorfi, 10-11, 2018). this article affirms that the economic unit's management is in charge of upholding the rights of various social groups as well as a number of environmental and social objectives that advance the general welfare of the community in which the economic unit works. (esfijani, 2014: 29) the following are some of the definitions of social responsibility that various authors and scholars have come up with: (al-adhari, 2017) according to his definition, it is a moral obligation that businesses have to the communities in which they operate to rectify the harm that their activities cause and to forward the cause of social responsibility. enhance the level of living for those in the workforce, the environment, and society, as well as the caliber of its output, (al-zurfi, 2018) mentioned social responsibility in passing and provided non-financial data about how the unit's decisions affect society and the environment in which it works. (al-zurfi, 10, 2018). social responsibility is defined by jacob and matar as follows: the company community is achieved by integrating it with the company's activities, strategies, concepts, and goals. it also aims to add american journal of business management, economics and banking volume 23 april 2024 p a g e | 18 www.americanjournal.org value to the company by showcasing the company's commitment to its responsibility towards stakeholders and proving that by means of integrated reporting (jacob and matar, 2021:12). according to abdullah (2021), social responsibility is a moral duty that a business has to the people in the community in which it operates. it also entails bearing and resolving any harm that may come to them as a result of the business's operations, as well as improving the environment and the standard of living for employees and their families. (abdullah, 2021, 17).: according to the researchers, social responsibility can be defined as follows: it is a collection of financial and non-financial decisions that an organization must make in order to meet its economic objectives and the social objectives of the community in which it operates, either voluntarily (due to ethical and social considerations) or compulsorily (due to legal requirements). 2-2 concept and importance of company value: the scholars have stated a number of definitions pertaining to the company's worth. (mubarak 2017) defined the company's value as the present value of discounted future cash flows resulting from investment projects (mubarak 2017: 232). lestari and armaih (lestari & armayah) stated that the market price of the company's ordinary shares determines the company's value and reflects the company's investments, financial decisions, and profit distribution (lestari & armayah, 2016:7). fajaria and isnalita stated (fajaria & isnalita, ) that the company's value is the amount that the anticipated buyer will offer to purchase the business, if it is sold (fajaria & isnalita, there are many indicators through which the value of the company can be maximized. my agency: (al-moussawi, 2017, 95-98) 1. competitive advantage index: the idea of a competitive advantage refers to what a business may do by maintaining a high level of output and profits in exchange, cutting expenses and growing its market share without doing so at the price of earnings and quality. 2. market share index: the degree of a company's production and marketing efficiency, as measured by the volume of sales in the market relative to the total sales of the same firms in the industry, is known as its market share. the top businesses that are able to influence and dominate the market are those with the biggest market shares. 3. trademark index: most businesses rely on their trademark to set their product apart from that of other businesses operating in the same sector." the company's trademark is a valuable intangible asset that gives it a competitive edge in the market and helps it build a strong brand.. 4. economic value added index: it refers to an accounting measure of the operation's performance as it currently exists, which is an accounting measure of income less the necessary accounting return needed to calculate the amount of capital invested. because it does not include the cost of invested capital, the added economic value serves as a measure of evaluating performance that beyond the limitations of traditional criteria. specifically, it demonstrates that the profit realized exceeds the cost of capital. (al-ghalabi: 6: 2017) 2-3 social responsibility and its role in improving the value of the company: there have been significant changes in the business environment that have impacted many facets of life. these changes have affected the progress, growth, and development of all companies, including industrial ones. as a result, they have had an impact on the coordination of social relations and the american journal of business management, economics and banking volume 23 april 2024 p a g e | 19 www.americanjournal.org structure of values in many nations. as a result, in light of these advancements, social responsibility has gained prominence. ( wirl 2013;229). the american scientist james tobin created this model in the 1960s, or 1969, and it was described as a way to measure a company's market value as a percentage. it is typically used as a useful indicator of corporate performance in the fields of financial sciences and economics. this statistic, which can be calculated using the following equation, is thought to be among the finest for assessing financial success.: tobin's q=(total market value + total book value liabilities )/(total book value of assets) where it represents: where the modified model was used according to many researchers to become company value = market value of equity ÷ book value of total assets in contrast, the market value of ownership rights is equal to (the number of ordinary shares subscribed to times the price of an ordinary share on december 31 of each year). the value of all assets registered at year's end equals the book value of all assets. because it is regarded as one of the most accurate and reliable metrics for determining a company's value, the researchers will therefore rely on the tobin's q scale, which was developed by american scientist james tobin (tobin james) in 1969. additionally, the ease of access to the financial data required for this measure and the fact that the majority of studies have included this metric when determining a company's value also contribute to their decision. 2-4 advantages of (tobin's q) scale in measuring the value of the company: numerous academics have chosen to utilize this metric because of its many benefits when determining the company's worth. (youssef, 2023: 54). 1because the tobin's q scale utilizes the market value of the company's capital, which incorporates profitability aspects and the risk motive for it in the future, it helps to avoid distortions that may be induced by certain accounting and tax rules. this scale is among the most significant and effective in determining the company's worth. it is also simply calculable using the data found in the financial accounts of the business. 2the tobin's q measure indicates the degree of investment motivation in the company's capital and can be a helpful tool for the business to forecast its future value. investors can use this information to predict opportunities for the company's value to grow, including the likelihood that these opportunities will materialize and the amount of return on current operations.tobin's q scale has the ability to compare different industrial companies, because the model looks to the future and is not affected by accounting standards, which in turn may differ from one industrial company to another. 3the tobin's q is a great predictor of market capitalization and one of the most reliable metrics for predicting stock market returns. 4tobin's q illustrates the connection between the market worth of a corporation and the cost of replacing its physical assets, which shows a company's long-term profitability. 5a corporation may use this scale, known as tobin's q, to help with investment decisions and to summarize information about the future that is pertinent to the decision. 6the market's perception of the firm from the several angles that outside parties, such as investors, observe is provided by this metric (tobin's q). american journal of business management, economics and banking volume 23 april 2024 p a g e | 20 www.americanjournal.org 7the tobin's q measure is a useful tool for evaluating performance since it takes into account several key factors, such as the assets that are registered with the firm and relevant market trends. 3. research methodology 3-1 the research problem: the study's identified issue is that a significant portion of the industrial companies listed on the iraq stock exchange have no interest in revealing social responsibility accounting at the level of their financial statements in a way that accurately reflects the company's social role and a statement of the losses it incurs in order to foster employee development, advance societal goals, and establish an atmosphere conducive to we note that most iraqi industrial companies are not interested in disclosing social responsibility accounting, and there is no local accounting standard related to reporting social responsibility. these companies should deal with developments, upgrade their products and services, and disclose environmental activities. 3-2 research objectives: by disclosing the company's strategy and analyzing the relationship between the disclosure of governance procedures and the role they play in improving the value of the company in the industrial companies listed in the iraq stock exchange, the researchers hope to ascertain the role played by social responsibility accounting in the listing of iraqi industrial companies on the iraq stock exchange. 3-3 the importance of research: the research is significant because it attempts to demonstrate the degree to which a sample of iraqi industrial companies listed on the iraq stock exchange are committed to applying and upholding the accounting principles of social responsibility and to displaying them in their financial statements in a manner that is beneficial to both the company and the working class. 3-4 research hypotheses: 1. there is a statistically significant correlation between the company's worth and its strategy. 2. there is a statistically significant correlation between the firm valuation and the disclosure of the governance processes. 3. there is a statistically significant correlation between the company's valuation and the disclosure of its goods and services. 3-5 the research community and its sample: the iraqi industrial private firms listed on the iraq stock exchange comprise the research community. according to the iraq stock exchange website, the study sample consisted of 25 companies, and 21 companies were selected for the research, representing 84% of the sample. the other firms were left out of the study sample because there was insufficient financial data available for the 2011–2020 timeframe. of the sample, there were 21 observations. american journal of business management, economics and banking volume 23 april 2024 p a g e | 21 www.americanjournal.org 4. results & analysis 4-1 measuring the effect of disclosing social responsibility in its various dimensions on the value of the company and proving hypotheses the tobin q index was used as a metric to evaluate the company's worth as it includes the market value and book value of the business. the process for figuring out the company's worth based on this indication is illustrated in the following equation. the primary hypothesis is to investigate the impact of a company's social responsibility disclosure across several dimensions on its overall worth. the outcomes of testing this theory and its conjectures are as follows: according to the main premise, there is a statistically significant correlation between a company's worth and its disclosure of social responsibility. the equation (y = â + bx + ̇) was utilized to conduct the effect test utilizing the spss software, and table (1) displays the findings of the analysis of variance between the variables for the relationship's indicators. first: examining the relationship between hypothesis testing and the research variables the primary hypothesis 1: the value of the firm and the disclosure of social responsibility accounting are significantly correlated. the results of testing this hypothesis are displayed in table no. (1). table (1) shows the results of testing the first main hypothesis using the spearman correlation coefficient: correlations roe tobin q spearman's rho csd correlation coefficient 1.000 .914** sig. (2-tailed) . .000 n 195 195 tobin q correlation coefficient .914** 1.000 sig. (2-tailed) .000 . n 195 195 **. correlation is significant at the 0.01 level (2-tailed). source: prepared by the two researchers based on the outputs of the spss program considering that r (195) = 0. 835, p <.05, indicates that the alternative hypothesis (h1), which asserts that "there is a significant relationship between the disclosure of social responsibility accounting and the value of the company," is accepted and the null hypothesis (h0) is rejected. this suggests that, at the 0.01 significance level, there is a direct correlation between the company's value and the disclosure of social responsibility accounting csd, with an increase in the latter's level of disclosure potentially translating into a rise in the former's value. the results of testing the sub-hypotheses of the first main hypothesis were as follows: 1 the first sub-hypothesis (h1): there is a significant relationship between the disclosure of the company's strategy and the value of the company. table (2) shows the results of testing the first sub-hypothesis using the spearman correlation coefficient: american journal of business management, economics and banking volume 23 april 2024 p a g e | 22 www.americanjournal.org table (2) results of testing the relationship between the disclosure of the company's strategy and the value of the company correlations a tobin q spearman's rho a correlation coefficient 1.000 .755** sig. (2-tailed) . .000 n 195 195 tobin q correlation coefficient .755** 1.000 sig. (2-tailed) .000 . n 195 195 source: prepared by the two researchers based on the outputs of the spss program considering that r (195) = 0.677, p <0.05, indicates that "there is a significant relationship between the disclosure of the company's strategy and the value of the company," rejecting the null hypothesis h0 and accepting the alternative hypothesis h1. since an increase in the degree of strategy disclosure can result in an improvement in the company's value, this suggests a direct link between the company's strategy a disclosure and its value tobin q at the 0.01 important level. 2 the second sub-hypothesis (h2): there is a significant relationship between the disclosure of governance procedures and the value of the company. table (3) shows the results of testing the second sub-hypothesis using the spearman correlation coefficient: table (3) results of testing the relationship between disclosure of governance procedures and company value correlations b tobin q spearman's rho b correlation coefficient 1.000 .812** sig. (3-tailed) . .000 n 195 195 tobin q correlation coefficient .812** 1.000 sig. (3-tailed) .000 . n 195 195 **. correlation is significant at the 0.01 level (2-tailed). source: prepared by the two researchers based on the outputs of the spss program considering that r (195) = 0. 769, p <0.05, indicates that the alternative hypothesis h2, which asserts that "there is a significant relationship between the disclosure of governance procedures and the value of the company," is accepted and the null hypothesis h0 is rejected. given that an increase in the amount of governance process disclosure can result in a rise in the business's value, this suggests a positive association between the disclosure of governance procedures b and the value of the firm tobin q at the 0.01 significant level. american journal of business management, economics and banking volume 23 april 2024 p a g e | 23 www.americanjournal.org 3the third sub-hypothesis (h3): there is a significant relationship between the disclosure of products and services and the value of the company. the table below shows the results of testing the third sub-hypothesis using the spearman correlation coefficient: table (4) results of testing the relationship between disclosure of products and services and company value correlations c tobin q spearman's rho c correlation coefficient 1.000 .805** sig. (2-tailed) . .000 n 195 195 tobin q correlation coefficient .805** 1.000 sig. (2-tailed) .000 . n 195 195 **. correlation is significant at the 0.01 level (2-tailed). source: prepared by the two researchers based on the outputs of the spss program considering that r (195) = 0.763, p <0.05, indicates that the alternative hypothesis h3, which asserts that "there is a significant relationship between disclosure of products and services and company value," is accepted and the null hypothesis h0 is rejected. given that an increase in the degree of product and service disclosure can result in a rise in the company's value, this suggests a positive link between the disclosure of products and services c and the value of the business tobin q at the 0.01 level of significance. 5. discussion & conclusion 5-1 conclusions: 1. the value of the company and the disclosure of social goals have a statistically significant relationship (73%). this suggests that there is a direct relationship (tobin q at 0.01 importance) between the value of the company and the disclosure of social goals, as higher levels of social goal disclosure can result in higher company values. 2. there is a 77% statistically significant correlation between the firm valuation and the disclosure of governance practices. given that increasing the amount of disclosure of governance processes can raise the value of the firm, this suggests that there is a positive link between the disclosure of governance procedures and the value of the company. 3. there is a statistically significant correlation of 57% between the company's valuation and the disclosure of its goods and services. given that any increase in the degree of product and service disclosure can result in a rise in the company's value, this suggests that there is a positive link between product and service disclosure and value. 4. there is a statistically substantial correlation (68%), between the company's worth and the disclosure of its plan. the fact that any increase in the degree of strategy disclosure can result in a rise in the company's worth suggests that there is a direct correlation between strategy disclosure and business value. american journal of business management, economics and banking volume 23 april 2024 p a g e | 24 www.americanjournal.org 5. there is an 83% statistically significant relationship between the company's valuation and its social responsibility declaration. as any increase in the degree of social responsibility disclosure might result in a rise in the company's value, this suggests that there is a direct link between social responsibility disclosure and value. 5-2 recommendations: 1. in order to provide a conceptual and applied framework that illustrates the significance of social responsibility accounting and how to disclose it, accounting associations, professional organizations, and accounting departments in the faculties of administration and economics at iraqi universities must give the disclosure of social responsibility accounting significant consideration. 2. iraqi industrial companies listed on the iraq stock exchange need to show more interest in the work of working people and protect them. they can do this by giving workers more training, offering incentives, giving them adequate housing, and offering health insurance. after all, a company's value will increase as a result of showing more interest in working people. 3. teaching industrial firms about the necessity of following the financial statement disclosure of social responsibility guidelines and establishing a dedicated accounting system that serves this function. 4. the company's management should take into account the disclosure of social responsibility in its financial statements in all its dimensions (company strategy, governance, products and services, community development and social goals, employment, and the environment) because the company spends on these dimensions. 5. the need that business managers focus on upcoming initiatives to increase social responsibility disclosure in their financial reports. references: 1. abdullah, ehab hashem, (2021). “accounting disclosure on social responsibility and its role in evaluating the performance of economic units.” master’s thesis, college of business economics, accounting department, al-nahrain university. 2. ahlam, madfouni (2021): “the impact of disclosure of social responsibility on the quality of financial statements” a case study in the oil corporation, master’s thesis, umm el-bouaghi university, accounting department, algeria. 3. al-adhari, muhammad amer rahi, (2017) “accounting disclosure of social responsibility and its impact on corporate performance,” master’s thesis, college of administration and economics, university of al-qadisiyah, department of accounting. 4. al-awwad, asaad muhammad ali wahhab. al-khafaji, saddam hassan najeeb, (2020), “the effect of accounting values on expressing an opinion on the financial statements and their reflection on the value of the company,” the iraqi journal of administrative sciences, vol. 17, no. 68. 5. al-ghalbi, majid mohsen muhammad, (2017), “economic value added directives in iraqi banks, an applied study”, al-kout journal of economic and administrative sciences, issue 26. 6. al-hasnawi, mushtaq muhammad raisan, al-tamimi, amal muhammad salman. (2020), “employing economic sustainability criteria in enhancing the value of the company,” journal of administration and economics, volume 9, issue 36. american journal of business management, economics and banking volume 23 april 2024 p a g e | 25 www.americanjournal.org 7. al-jajjawi, talal muhammad ali, al-masoudi, haider ali, al-saadi, marwa abdel-sattar, (2016). “the reflection of opportunity cost on the fair value method for evaluating the investment portfolio, a case study in some companies listed in the iraq stock exchange. scientific conference , karbala university. 8. al-musawi. alaa hassan youssef. (2017). “the relationship between environmental responsibility and the accounting dimensions of social welfare and its impact on maximizing the value of the company.” master’s thesis college of administration and economics department of accounting university of al-qadisiyah. 9. al-shammari, sadiq arshad (2012) “banking management reality and practical applications” first edition, baghdad-iraq 10. al-zorfi, alaa abdel-abbas, (2018) “disclosure of social responsibility and its role in enhancing the value of the company” master thesis college of administration and economics department of accounting university of kufa. 11. al-zubaidi, shatha abdul-hussein jabr, mansour, lama muhammad, al-mamouri, muhammad ali musa (2021), “the impact of sustainable growth on the value of companies,” an applied study for industrial companies listed in the iraq stock exchange, journal of financial and accounting sciences, vol. the first, the second issue 12. budiharjo, r.(2021): “the effect of good corporate governance and leverage toward company value with profitability as a moderating variable” , international journal of management studies and social science research,3(3).220-234 13. donleavy,g.(2018): ”an introduction to accounting theory”.2nd edition. 14. esfijani,azam(2014) methodology development for measuring virtual university social responsibility. 15. fajaria,a.z,&isnalita.(2018).the effect of profitability. liquidity ,leverage and firm growth of firm value with its dividend policy as a moderating variable , international journal of managerial studies and research ,6(10),55-69. 16. franz wirl ,( 2013) " dynamic corporate social responsibility (csr) strategies in oligopoly, springer-verlag berlin heidelberg. 17. gutsche, r, schulz,& gratwohl , m, j,(2016),” firm-value effects of csr disclosure and csr performance”, the seminar participants at the university of st. gallen 18. harrison,w.t.,horngren,c.t.,&thomas,c.w.b(2014).financial accounting. ninth edition. 19. lestari. siti ayu & armayah. mursalim (2016). "profitability and company value.: empirical study of manufacture companies in indonesia period 2009 – 2014", information management and business review. vol. 8. no. 3. 20. mubarak, siham abdel mongy, (2017), “the impact of accounting disclosure on hedging as an activity to manage exchange rate risks on the company’s value an empirical study on nonfinancial companies listed on the egyptian stock exchange,” the third international conference on “the role of social responsibility for small enterprises and the medium in consolidating the strategy of sustainable development reality and challenges”, 14-15-november 21. ross,s .a., randolph, w., &jordan, b.d.(2019).fundamentals of corporate finance .twelfth edition. 22. saleh, maher abdel-sada, (2021) “accounting disclosure on social responsibility and its impact on achieving the goals of sustainable development and its reflection on the value of the american journal of business management, economics and banking volume 23 april 2024 p a g e | 26 www.americanjournal.org establishment,” a doctoral thesis at the university of baghdad higher institute for financial and accounting studies. 23. shruti, (2014): " impact of corporate social responsibility disclosure on the financial " performance" master thesis business administration .financial management. 24. thank you, saud jaid, jassim, ali naeem. (2011), “accounting measurement and disclosure of social responsibility in economic units,” al-muthanna journal of administrative and economic sciences. volume (1), issue (1). 25. yacoub, ibtihaj ismail. matar, zainab jumaa (2021). “social responsibility in light of crises with reference to the covid-19 pandemic and its impact on the value of banks. an applied study.” a special issue in the first international scientific conference al-wareth scientific academy college administration and economics university and the legacy of the prophets. 26. youssef, hashem haider (2023). the effect of free cash flow on the efficiency of investment decisions and their reflection on the value of the company. master's thesis college of administration and economics university of kufa. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 255 www.americanjournal.org priority directions of establishing the activity of free economic zones in uzbekistan iskandarova dilorom khayrullayevna tashkent financial institute department of valuation and investment email address: diskandarova 117@gmail.com a b s t r a c k e y w o r d s the article examines the priority directions for the establishment of free economic zones in uzbekistan. also, the formation of legal norms for foreign direct investments in accordance with international standards, attracting more investments to the country's economy, structural changes in the economy. proposals and recommendations on the establishment of sezs and increasing investment activity in them were formulated. investment, investment attractiveness, action strategy, potential, market conjuncture, strategic program, economic zone, industrial zone. introduction as a result of increasing globalization processes, growing demand for investments between developed and developing countries, targeted scientific research is being conducted on the scientific solution of a number of problems. in particular, special attention is paid to scientific research aimed at the quality of economic growth through the formation of international standards for foreign direct investments, attracting more investments to the country's economy, structural changes in the economy, creation of new technologies, product and service sectors, and the rapid development of the innovative economy. "we will achieve rapid development of our economy due to the active attraction of investments and the launch of new production facilities... we can achieve a positive result in this matter if we can carefully formulate investment projects by regions and sectors for investors who want to invest in our economy. in this regard, it is necessary to organizationally and legally regulate the placement of business entities in free economic zones (sezs) and small industrial zones, as well as giving them privileges and preferences. first of all, it is necessary to create such an opportunity for entrepreneurs and foreign investors who produce products for export, have established innovative and high-tech production" [1]. today, there are more than a thousand types of sezs in the world, depending on the size of their territory, openness to foreign economic activity participants, importance and form, and these zones are a unique multiplier for ensuring economic development. today, the socio-economic development of the countries of the world is significantly different from the previous stages in terms of its meaning. the most important aspect in this is the increasing integration and globalization of national economies, leading to the intensification of competition in the international arena and the struggle of each country to strengthen its position in the international division of labor. in this struggle, the countries that have attracted more foreign investments to the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 256 www.americanjournal.org national economy and organized modernization work in the economy are dominating the world competition by achieving high levels of development. during this period, the republic of uzbekistan should become a member of international financial institutions, improve the relations of investment activities using the experiences of the developed countries of the world, and harmonize them with international norms in order to attract more foreign investments from the world investment market to the national economy. review of literature on the subject economists a.vahabov, sh.khojibaqiev, n.mo'minov noted the following about the investment environment: "investment environment is a set of economic, political and social factors that predetermine the level of volatility of foreign capital investments and the possibilities of their effective use in the country. the investment environment is a complex, multifaceted concept, and has indicators such as national legislation, economic conditions (crisis, growth, stagnation), customs regime, currency policy, economic growth rates, inflation rates, exchange rate stability, level of foreign debt" [2] . research methodology according to the state statistics committee, as of 1 april 2022, there are 20 special economic zones (sezs), 116 directorates of small industrial zones (sizs), 12 technoparks and 440 clusters in the country, which are included: in the sez – 512 enterprises, siz – 1,865, technology parks – 58 and clusters – 446 enterprises. the volume of industrial production for the specified period totaled 13.87 trillion soums, including: in the fez – 5.45 trillion soums, siz – 947.9 billion soums, technology parks – 111.0 billion soums and clusters – 7.36 trillion soums the largest volume of industrial production was recorded in clusters – 7.36 trillion soums. 2021, the total volume of industrial production amounted to 9.61 trillion soums, including: in the fez – 3.28 trillion soums, siz – 672.4 billion soums, technology parks – 87.8 billion soums and clusters – 5. 6 trillion soums. the volume of construction work performed on its own, totalled 8.5 billion soums, including: in the fez – 5.4 billion soums, technology parks – 3.1 billion soums. the largest volume of construction work performed on its own was recorded at the enterprises included in the fez – 5.4 billion soums. in january-march 2021, the volume of investments in fixed assets from all sources of financing totalled 1.05 trillion soums, of which: in fez – 669.5 billion soums, siz – 93.6 billion soums, technology parks – 9.9 billion soums and clusters – 279.8 billion soums. in january-march 2021, the amount of profit (loss) of enterprises before paying income tax totalled 329.9 billion soums, including: in the fez – -116.5 billion soums, siz – 111.5, technology parks – 3.6 and clusters – 331.3 billion soums. accounts receivable for the specified period totalled 10.16 trillion soums, including: in the fez – 5.22 trillion soums, siz – 576.1 billion soums, technology parks – 89.9 billion soums and clusters – 4.27 trillion soums. accounts payable for the same period totaled 11.8 trillion soums, including: in the fez – 6.1 trillion soums, siz – 819.7 billion soums, technology parks – 129.0 billion soums and clusters – 4.74 trillion soums as of 1 april 2021, the receivables of enterprises totalled 6.7 trillion soums, including: in the fez – 3.58 trillion soums, siz – 458.3 billion soums, technology parks – 39.5 billion soums and clusters – 2.61 trillion soums; accounts payable for the same period totalled 9.44 trillion soums, including: in the fez – 4.54 trillion soums, siz – 965.7 billion soums, technology parks – 51.3 billion soums and clusters – 3.88 trillion sum. the volume of shipped products (goods and services) outside the republic (export) american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 257 www.americanjournal.org totalled 2.36 trillion soums, including: in the fez – 752.4 billion soums, siz – 236.9 billion soums, technology parks – 33.4 billion soums and clusters – 1.34 trillion soums. currently, 24 special economic zones (sezs) are functioning in the republic of uzbekistan, 23 of which specialize in industry and 1 in agriculture. in total, from 2008 to 2022, 604 projects worth us$3.2 bn were implemented in the territories of special economic zones, of which direct foreign investments amounted to about us$896.9 mm. as a result, about 55 thousand new jobs were created. the largest of these projects were implemented in angren fez (84 projects worth us$1,038.2 mm), navoi fez (73 projects worth us$495 mm), urgut fez (77 projects worth us$335.9 mm) and kokand fez (84 projects worth us$280.2 mm). in the period under review, fez member enterprises produced over 500 types of industrial products worth 13.7 tn uzs and exported products worth us$283.1 mm, a growth of 114% compared to the same indicator of 2022. a large-scale work was carried out to improve the legal and regulatory framework governing the development of free economic zones. thus, the law of the republic of uzbekistan "on special economic zones" was adopted, which provides for the procedures of establishing, extending the term of operation and liquidation of free economic zones, changing their borders, revising the system of their management, as well as the procedures for registration of their participants. in addition, the document stipulates that financing of construction or reconstruction of infrastructure facilities on the territory of a sez may be financed from both centralized and non-centralized sources. providing sezs with the necessary infrastructure is a key factor in their effective functioning and attracting new investors and entrepreneurs to implement projects on their territory. in this regard, it is planned to allocate 847 bn uzs in 2023 to carry out works on connecting existing sezs to engineering and communication networks. in particular, it is conditioned by positive forecast of investment activity in fezs: in 2023, 86 new investment projects worth us$983.6 mm are planned to be realized in free economic zones of uzbekistan. as a result of the implementation of these projects, the production of 128 new types of industrial products will be mastered and 13 thousand new jobs will be created. it can be seen from the table that 65.6 percent of the world's countries, i.e. 143 out of 218 countries, have sezs. we roughly divided the countries of the world into six regions in order to analyze the distribution of sezs around the world. we found out which of these regions have sezs or not table 1 distribution of free economic zones in the countries of the world1 world regions number of countries in the region eezs there is countries* in interest eezs no countries** in interest developed countries 32 28 87,5 4 12,5 latin america 45 41 91,1 4 8,9 africa 54 13 24,1 41 75,9 asia 37 26 70,3 11 29,7 oceania 18 11 61,1 7 38,9 transition economy 32 24 75,0 8 25,0 countries 218 143 65,6 75 34,4 1 the world bank “global financial development report 2015”, 2016 year page32-33. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 258 www.americanjournal.org it can be seen from the table that 65.6 percent of the world's countries, i.e. 143 out of 218 countries, have sezs. we roughly divided the countries of the world into six regions in order to analyze the distribution of sezs around the world. we found out which of these regions have sezs or not. the share of countries with sezs is highest in latin america and developed countries (91.1 and 87.5 percent, respectively). in recent years, this institute has been rapidly entering the countries of the transition economy. in africa, it is the lowest, that is, 24.1 percent. free trade zones are also common in the world. free trade zones are most developed in the united states. their organization is provided by a special law of 1934. its purpose is to stimulate trade, speed up trade operations, and reduce trade costs. table 2 types of free economic zones2 № sales oriented industry is oriented towards production focused on technical areas service is directed 1. free customs an import substitute technopolis offshore 2. bond warehouses export production technopark financial centers 3. free port industrial parks regions developing new and high technologies banking services 4. free trade zone maquiladoras tourist services ecopark the following scientific-theoretical conclusions were formed within this chapter of the research work: with the establishment of industrial zones, producers will have the opportunity to sell their products on the international market and buy the products they need without intermediaries. entrepreneurs can take advantage of tax and customs benefits and make payments, that is, it is important for the formation and development of the market of national currencies [7]. conclusion the following scientific proposals and practical recommendations aimed at activating the attraction of investments in free economic zones were developed: 1. when establishing sezs and increasing investment activity in them, it is appropriate to provide differentiated benefits based on the types and goals of sezs. 2. in accordance with the regime of applying tax incentives in the "navoiy" sez established by the legislation, when the volume of direct investments is brought to the level of the next level of incentives, the term of tax incentives is calculated by deducting the previously valid incentive period [8]. this situation does not encourage the interest of investors to increase the volume of investments in these free economic zones. based on this, when the volume of direct investments is brought to the level of benefits of the next level, it is appropriate to cancel the practice of deducting the period of tax benefits that were already in effect [9]. 2жадвал муаллиф томонидан иқтисодий адабиётларни ўрганган ҳолда муаллиф томонидан ишлаб чиқилган. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 259 www.americanjournal.org references 1. мирзиёев ш.м. ўзбекистон республикаси президентининг олий мажлисга мурожаатномаси. –тошкент.// халқ сўзи, 2018 йил 29 декабр. 2. ваҳабов а.в., хожибақиев ш.х., мўминов н.г. хорижий инвестициялар. ўқув қўлланма.т.: “молия”, 2010.-б.153. 3. financial and insurance advisory services (fias), the international finance corporation (ifc), the multilateral investment guarantee agency (miga) and the world bank (ibrd).«special economic zones performance, lessons learned, and implications for zone development». april 2008, p.3.http://www.fias.net 4. белова л. г. инновации в мировой экономике. учебное пособие –м.: экономический факультет мгу имени м. в. ломоносова, 2018. -148 с. 5. vahabov a.v., tadjibaeva d.a., khajibakiev sh.kh. world economy and international economic relations. textbook. tashkent: bactria press, 2015. 583 p. 6. vahabov a.v., khojibaqiev sh.kh., mominov n.g. foreign investments. study guide.-t.: "finance", 2010 324 p. 7. salohiddin o’g’li a. m. improving the development of renewable energy resources projects //pedagog. – 2023. – т. 6. – №. 2. – с. 486-495. 8. ochilov b. mamlakat iqtisodiyotini rivojlantirishda investitsion jozibadorlikni yaxshilash masalalari //iqtisodiyot va taʼlim. – 2023. – т. 24. – №. 1. – с. 75-81. 9. бутаев ж., раджабов у. актуальные вопросы развития фондового рынка в национальной экономике //экономика и социум. – 2021. – №. 4-1 (83). – с. 768-771. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 75 www.americanjournal.org methods of development of practical sciences of students in the progress of education ў. д. хидиров олий таълим, фан ва инновациялар вазирлиги ҳузуридаги олий ва профессионал таълим муассасалари моддий–техник базасини мустаҳкамлаш маркази директори, п.ф.н. a b s t r a c t k e y w o r d s this article describes the development of students' practical knowledge in the educational process, the effectiveness of practical training and the qualities of preparing students for practical training. in the republic of uzbekistan, higher education, practical training. introduction ўзбекистон республикасида олий таълимни тизимли ислоҳ қилишнинг устувор йўналишларини белгилаш, замонавий билим ва юксак маънавий-ахлоқий фазилатларга эга, мустақил фикрлайдиган юқори малакали кадрлар тайёрлаш жараёнини сифат жиҳатидан янги босқичга кўтариш, олий таълимни модернизация қилиш, илғор таълим технологияларига асосланган ҳолда ижтимоий соҳа ва иқтисодиёт тармоқларини ривожлантириш мақсадида: 1. қуйидагилар: а) ўзбекистон республикаси олий таълим тизимини 2030 йилгача ривожлантириш концепцияси (кейинги ўринларда — концепция) 1-иловага мувофиқ тасдиқлансин ва унда қуйидагилар назарда тутилсин: олий таълим соҳасида давлат-хусусий шерикликни ривожлантириш, ҳудудларда давлат ва нодавлат олий таълим муассасалари фаолиятини ташкил этиш асосида олий таълим билан қамров даражасини 50 фоиздан ошириш, соҳада соғлом рақобат муҳитини яратиш; ўзбекистон миллий университети ва самарқанд давлат университетини мамлакатимиз олий таълим муассасаларининг флагманига айлантириш; республикадаги камида 10 та олий таълим муассасасини халқаро эътироф этилган ташкилотлар (quacquarelli symonds world university rankings, times нigher education ёки academic ranking of world universities) рейтингининг биринчи 1 000 та ўриндаги олий таълим муассасалари рўйхатига, шу жумладан ўзбекистон миллий университети ва самарқанд давлат университетини биринчи 500 та ўриндаги олий таълим муассасалари рўйхатига киритиш; олий таълим муассасаларида ўқув жараёнини босқичма-босқич кредит-модуль тизимига ўтказиш; javascript:scrolltext(4547594) american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 76 www.americanjournal.org халқаро тажрибалардан келиб чиқиб, олий таълимнинг илғор стандартларини жорий этиш, жумладан ўқув дастурларида назарий билим олишга йўналтирилган таълимдан амалий кўникмаларни шакллантиришга йўналтирилган таълим тизимига босқичма-босқич ўтиш; олий таълим мазмунини сифат жиҳатидан янги босқичга кўтариш, ижтимоий соҳа ва иқтисодиёт тармоқларининг барқарор ривожланишига муносиб ҳисса қўшадиган, меҳнат бозорида ўз ўрнини топа оладиган юқори малакали кадрлар тайёрлаш тизимини йўлга қўйиш; олий таълим муассасаларининг академик мустақиллигини таъминлаш; хорижий инвестицияларни кенг жалб қилиш, пуллик хизматлар кўламини кенгайтириш ва бошқа бюджетдан ташқари маблағлар ҳисобига олий таълим муассасаларида технопарк, форсайт, технологиялар трансфери, стартап, акселератор марказларини ташкил этиш ҳамда уларни тегишли тармоқ, соҳа ва ҳудудларнинг ижтимоий-иқтисодий ривожланишини тадқиқ қилувчи ва прогнозлаштирувчи илмий-амалий муассасалар даражасига олиб чиқиш; олий таълим муассасалари профессор-ўқитувчилари, илмий изланувчилари, докторантлари, бакалавриат ва магистратура талабаларининг юқори импакт-факторга эга нуфузли халқаро илмий журналларда мақолалар чоп этиши, мақолаларга иқтибослик кўрсаткичлари ошиши, шунингдек республика илмий журналларини халқаро илмий-техник маълумотлар базасига босқичма-босқич киритилишини таъминлаш; ўзбекистон олий таълим тизимини марказий осиёда халқаро таълим дастурларини амалга оширувчи «хаб»га айлантириш; амалий машғулот дарсларини икки турга ажратиш мумкин. булар маъруза дарси мавжуд бўлган ва маъруза дарси мавжуд бўлмаган фанлардан (масалан, чет тиллар) ўтказиладиган амалий машғулотлар. амалий машғулот дарслари фан дастурлари ва ишчи дастурлари ҳамда календар тематик режаларига қатъий амал қилинган ҳолда ўтказилади. амалий машғулотларни ўтказиш бўйича зарур адабиётлар рўйхати берилади. маъруза дарси мавжуд бўлган амалий машғулотларда асосан маъруза дарсларида ўтилган материаллар машқлар бажариш ёрдамида мустаҳкамланади. амалий машғулот қуйидаги мақсадларга эришиш учун қўлланилади: -назарий материални тартибга солиш. -кўникмаларни ҳосил қилиш. -билимларни назорат қилиш. амалий машғулотлар самарадорлиги таълим олувчиларни амалий машғулотга тайёрланиш сифати билан аниқланади. маъруза ва янгиликлар билан чиқувчи, таълим олувчиларнинг тайёргарлиги аҳамиятга эга бўлади. хар бир машғулот учун технологик хариталар ишлаб чиқилади. ўқув мақсадлари муайян таълим жараёни якунида таълим олувчи томонидан ўзлаштирилиши, янги ҳосил қилиниши лозим бўлган билим, ҳатти-ҳаракат билан боғлиқ бўлган амалий топшириқни уддалай олиш маҳорати, шахсий фазилатлар ва хулқни белгилайди. ҳар бир фаннинг ўқув мақсадлари тўғри белгиланиши муҳим аҳамиятга эга. умумий ўқув мақсадларининг мазмуни йўналтирувчи мақсадлардан келиб чиқиб белгиланади. ўқитувчи томонидан амалий машғулотларни ўтказиш технологияси, дарс ишланмаси ва технологик харитаси ишлаб чиқилади. ҳар бир машғулот бўйича дарс ишланмалари ва технологик хариталарни ишлаб чиқиш ўқув жараёнини тўлақонли лойиҳалаштириш ҳамда самарали ташкил қилиш имконини беради. талабалар мустақил ишини баҳолаш. тми натижалари амалдаги american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 77 www.americanjournal.org "олий таълим муассасаларида талабалар билимини назорат қилиш ва баҳолашнинг рейтинг тизими тўгрисидаги низом"га1 асосан баҳолаб борилади. ҳар бир фан бўйича талаба мустақил ишига раҳбарлик қилиш юкламаси профессор – ўқитувчи шахсий иш режасининг ўқув ишлари бўлимида қайд этилади. курс иши (лойиҳа) малакавий битирув иши ва магистрлик диссертацияси тайёрлашга ажратилган соатлар, профессор – ўқитувчи шахсий иш режасининг ўқув ишлари бўлимида қайд этилади. талабанинг мустақил ишига раҳбарлик қилиш кафедрага тузиладиган ва факулътет декани томонидан тасдиқланадиган консультациялар жадвали асосида амалга оширилади. талаба мустақил иши жб,об ва яб турларида баҳоланади ва талабанинг умумий рейтингига киритилади. талабалар рейтинг дафтарчаси қайд этиладиган мустақил ишларини баҳолаш «талабалар билимини баҳолашнинг рейтинг тизими тўғрисидаги низом» асосида амалга оширилади. талабалар рейтинг кўрсаткичлари, шу жумладан мустақил иши бўйича, анъанавий гуруҳ рейтинг ойнасига ва (ёки) факулътетнинг махсус электрон тармоғида ёритиб борилади. талаба мустақил ишини назорат қилиш турлари ва уни баҳолаш мезонлари тегишли кафедра томонидан белгиланади ва факулътет кенгашида тасдиқланади. мустақил ишларни баҳолаш мезонлари талабаларни ўқув йили (семестри) бошланиши олдидан методик материаллар билан тарқатилади. талаба мустақил иши бўйича белгиланган максимал баллнинг 55% и дан кам бўлмаган балл тўплаши лозим, акс ҳолда якуний назоратга рухсат этилмайди. талабанинг мустақил иши кафедра архивида рўйхатга олинади ва ўқув йили мобайнида сақланади. талабанинг курс иши (лойиҳаси)ни ҳамда малакавий битирув иши ёки магистрлик диссертациясини рўйхатга олиш ва сақлаш тартиби тегишли меъёрий ҳужжатлар асосида амалга оширилади. амалий машғулотлар самарадорлиги таълим олувчиларни амалий машғулотга тайёрланиш сифати билан аниқланади. маъруза ва янгиликлар билан чиқувчи, таълим олувчиларнинг тайёргарлиги аҳамиятга эга бўлади. хар бир машғулот учун технологик хариталар ишлаб чиқилади. ўқув мақсадлари муайян таълим жараёни якунида таълим олувчи томонидан ўзлаштирилиши, янги ҳосил қилиниши лозим бўлган билим, ҳатти-ҳаракат билан боғлиқ бўлган амалий топшириқни уддалай олиш маҳорати, шахсий фазилатлар ва хулқни белгилайди. ҳар бир фаннинг ўқув мақсадлари тўғри белгиланиши муҳим аҳамиятга эга. умумий ўқув мақсадларининг мазмуни йўналтирувчи мақсадлардан келиб чиқиб белгиланади. ўқитувчи томонидан амалий машғулотларни ўтказиш технологияси, дарс ишланмаси ва технологик харитаси ишлаб чиқилади. ҳар бир машғулот бўйича дарс ишланмалари ва технологик хариталарни ишлаб чиқиш ўқув жараёнини тўлақонли лойиҳалаштириш ҳамда самарали ташкил қилиш имконини беради. талаба томонидан мустақил ишни бажаришда уларнинг фаолияти тизимида кўрсатилган ҳар бир элементларнинг муваффақиятли ҳаракатланиши ўқитувчини қуйидаги бошқарув ҳаракатларини аниқлайди: режалаштириш, ташкиллаштириш ҳамда мониторинг ва баҳолаш. ўзини ўзи текшириш учун ҳар бир ўқув машғулотига тавсия этилаётган топширик (тест, савол, вазифа ва машқлар) жорий педагогик назоратни ва талаба томонидан кузатилган таълимий мақсадларга эришиш даражасини доимий ўзи баҳоланиш таъминлайди. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 78 www.americanjournal.org адабиётлар 1. каримов и.а. ўзбекистонинг ўз истиқлол ва тараққиёт йўли.т.:“ўзбекистон” 1992 й. 2. каримов и.a. баркамол авлод ўзбекистон тараққиётининг пойдевори. т: «шарқ» нашриёти, 1998 й. 3.азизхўжаева.н.н. педагогик технологиялар ва педагогик махорат.т.: 2003. 4. бегимкулов у. ш. педагогик таълимда замонавий ахборот технологияларини жорий этишнинг илмий-назарий асослари. монография. – тошкент: фан, 2007 й. 5. беспалько в.п. слагаемые педагогической технологии.м.: педагогика 1989г. 6. йўлдошев ж. ғ. янги педагогик технология: йўналишлари, муаммолари, ечимлари. – халқ таълими журнали, 1999, №4. 7.кларин в.м. педагогическая технология в учебном процессе.м.: знание 1989г. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 243 www.americanjournal.org risk assessment of insurance services in our country sh. f. kobilzhonova lecturer of the department of "general economic disciplines" of the tashkent financial institute a b s t r a c t k e y w o r d s our country risk assessment reflects our opinion on the insurance risks to which the economy, politics, financial system, payment culture and the rule of law in the republic of uzbekistan are exposed. our assessment of the sectoral risk of the uzbek general insurance sector is in line with similar estimates for kenya, angola and india. however, the general insurance markets in these countries are at very different stages of development. our opinion on the uzbek general insurance sector takes into account the still developing institutional system, as well as the dynamics of the industry and the characteristics of insurance products. insurance activity, insurance interest, insurance premium, insurance franchise, insurance market, insurance products, subrogation, acquisition, insurance contract, income, property, property interest, liability, insurance, policyholder, insurer introduction we consider the operating conditions for uzbek insurance companies to be unfavorable, taking into account the introduction of restrictive measures in 2020, the low level of penetration of insurance services and only moderate prospects for economic growth in 2020, although they are better than in some other developed and emerging markets. we expect economic growth in uzbekistan to be only 1.0% (compared to 5.6% previously), reflecting the negative impact of measures to contain the covid-19 pandemic on domestic and external demand. at the same time, the risks of deterioration in the forecasts of our baseline scenario remain. the impact of the covid-19 pandemic on uzbekistan's economic performance is still difficult to assess, and the consequences of the current situation may be worse than we currently assume. the pace of economic recovery will also depend on policy measures aimed at limiting the effects of stress factors and supporting the economy and households. indicators of the well-being of the population in uzbekistan remain low in real terms: gdp per capita was about $1,585 at the end of 2019. the population mainly purchases basic necessities, not insurance services, therefore they do not always buy adequate insurance coverage or do not buy it at all. this circumstance, as well as the low financial literacy of the population, hinder the development of the general insurance sector in uzbekistan. as a result, the portfolios of uzbek companies engaged in general insurance are dominated by simple insurance products. we note that the country's insurance sector is still characterized by a relatively low level of maturity and penetration of insurance services. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 244 www.americanjournal.org the ratio of the insurance premium of companies in the general insurance sector to gdp was 0.34% at the end of 2019. we expect this indicator to remain at a low level in the future. the low level of financial literacy also hinders the development of the insurance sector in uzbekistan. the volume of public spending on insurance services averages $5 per capita, which is significantly lower than in developed insurance markets (more than $2,000) and even in developing countries such as kazakhstan, angola, kenya and india (less than $50). the credit quality indicators of the banking sector of uzbekistan have a negative impact on the asset quality indicators of insurance companies. the basic rating level of commercial banks operating only in uzbekistan ("b+") is low in the international context. insurance companies are exposed to credit and market risks associated with the banking sector, in which they invest the bulk of their assets. the regulatory regime applicable to the uzbek insurance sector does not limit the entry of new companies into the market. over the past five years, the number of general insurance companies has increased from 23 to 28. we note the high concentration of the country's insurance sector: the five largest companies control 56% of the general insurance market. in our opinion, the major players have more recognizable brands and enjoy the benefits associated with greater customer awareness of their insurance products, as well as the presence of sales networks that these companies effectively manage. we note that state insurance companies account for 40% of the gross subscribed insurance premium in the general insurance segment, although this share is gradually decreasing. the regulatory body announced the gradual privatization of the insurance sector in uzbekistan, putting up for sale a 25% stake in the capital of the state-owned kafolat insurance company jsc in august 2019. a significant part of the signed gross insurance premium in the general insurance segment (83%) falls on three main business lines: property insurance (35%), financial risk insurance (31%) and auto insurance (17%), and we expect that this structure of insurance portfolios will not undergo significant changes in the next two yearsthree years. corporate clients account for 55% of the signed gross insurance premium. compulsory insurance, in particular car insurance, prevails in the segment of insurance for individuals. however, we expect that the situation may gradually change. we positively assess the regulatory authorities' measures aimed at conducting educational programs to raise public awareness of insurance services that can contribute to the development of the insurance sector in uzbekistan in the medium term. literature review of course, "insurance" as a phenomenon did not appear yesterday or today, but, as noted by economists t. malikov and h. shennaev, it is known from history that even at the early stages of human development there were relations related to insurance. in the primitive communal system, those who lived life in the form of a tribe created food reserves to avoid unpredictable, diverse events. some, however, perceived such unpleasant phenomena as floods and droughts that occurred as a curse of god. for some reason, there is no doubt that reserves were created to compensate for those losses that were noticed when events unrelated to the will of a person, in a word, were unexpected and unpredictable at that time. according to the russian scientist m. ivanov, during the reign of king hammurabi, who ruled the babylonian state in 1792-1750 bc, the members of the trade caravan had mutual consent before setting off [1]. according to this agreement, if the property of any member of the caravan was lost, stolen or looted by pirates, this damage was compensated by the members of the caravan. however, several thousand years have passed since the time when the civilization of american journal of business management, economics and banking volume 20 january, 2024 p a g e | 245 www.americanjournal.org mankind began, and to the present day. however, the formation of reserves to compensate for losses incurred as a result of various events, which are one of the fundamental, scientifically based principles of insurance, remains today. according to u. turgunov, n. beknozov, the issues of special insurance arose in some states in the middle ages. the transport service of a smaller industry, the development of international trade by the xviii century. expanded the range and scale of such services in european countries. of course, if in the first periods ships and cargo were mainly insured, then later mandatory insurance of passengers and crew members was introduced. this sphere has expanded, insurance services of various types of economic activity, people of different spheres have begun to appear. some sources note that the first written insurance contract in england was concluded in the xiv century, when a fire insurance society was first established in russia in 1827, in italy in 1393, each notary averaged an insurance policy with 80 clients per week, and finally, in 1466, venice adopted maritime insurance code. one can even trace in the legal literature the existence of points of view that the work on codification of the right to insurance in the russian state began in 1879 [2]. the term "insurance", i.e. "insurance", which comes from english, means "in" (inside) and "sure" (hope, reliable) – "in safe hands". this means that the insured object is reliably protected, which means there is nothing to worry about. it is known that even in the republic of uzbekistan today, as one of the necessary elements of the production infrastructure, insurance occupies a special place in ensuring the continuity of ongoing economic reforms and protecting the population from unpleasant events, moving step by step towards building a just society, a strong democratic rule of law based on equality of all segments of society. as u. aitbayev correctly noted, the insurance market provides material assistance in the preservation of almost all forms of ownership from natural disasters, compensation for damage caused to people as a result of various natural disasters. thus, m. yusupov believes that "insurance, as an economic category consisting of accounting for contributions from interested organizations and citizens, means the emergence of a monetary fund under the management of a special organization (insurer) and a form of distribution", e. khodzhiev explains that "insurance means the provision of compensation for damage that may be caused by paying a membership fee to a special institution". a.t. umarov put forward the idea that "insurance is the protection of one's interests by paying the insurance ceiling (insurance money) to these persons in accordance with the insurance contract in the event of a certain insured event from the account of funds formed from insurance premiums paid by legal entities and individuals", and m. yuldoshev and y. tursunov believes that "insurance is an entrepreneurial activity aimed at protecting the interests of the insured person by fully or partially reimbursing him at the expense of previously paid insurance premiums, which replaces the material damage caused in the event of an insured event stipulated by the contract between the insurer and the insured person". "insurance is a means of protecting an enterprise and the population from harm, a source of investment in the economy, as well as the basis of stability and financial security of society" this is how russian scientists l.n. klochenko and k.i. pylov [3]. as can be seen from the sources, there are different approaches to the concept of "insurance". if some of them imply that policyholders are a special "fund" formed on the basis of such contributions, then in some of them one can see a "means of protection" from losses, in others – a "form of formation american journal of business management, economics and banking volume 20 january, 2024 p a g e | 246 www.americanjournal.org and distribution of a monetary fund" in the management of a special organization (insurer) or "economic relations" or "civil law relations" related to compensation for damages. analysis a mechanism that guarantees the protection of economic entities, including insurance institutions, eliminates or minimizes damage not only to the potential of this institution, but also to the economy of the country (region) as a whole. this is precisely the main function of ensuring the economic security of economic entities – increasing scientific and economic potential. there are groups of factors affecting the internal and external environment on the security of an organization, each of which may contain different types of threats: economic, market, political, criminal, technological, competitive, social, international, etc. [4,p.187]. the main factors affecting the stability and economic security of the company include: – the size of the company; – external risks; – balance of the insurance portfolio; – development and sustainability of the customer base; – balance of financial flows; – the state of the branch network; – the period of the company's existence on the market; – the business potential of the company. each insurance company uses its own appropriate set of measures and methods that are suitable for both its internal and external environment. in the mode of sustainable operation, an insurance company, when solving problems of its economic security, pays great attention to maintaining a normal rhythm of functioning, preventing material and/or financial damage, preventing illegal access to official information and destruction of computer databases, countering unfair competition and more. the continuous strengthening of factors that threaten the economic security of an insurance company and cause its depressed development raises the question of creating a system for monitoring the condition and dynamics of the company's development in order to warn about the impending danger and take the necessary protective and counter measures. it is essential to determine the characteristics of the economic security of an insurance company (indicators). both the degree of adequacy of the assessment of the company's economic security, which corresponds to the real state of affairs, and the correctness of the justification of the complex of necessary measures to prevent and eliminate the danger corresponding to the scale and nature of the threats depend on the accurate recognition of hazards, on the correct choice of meters for their manifestation. in general, for an insurance company, the concept of quantitative and qualitative indicators of economic security may contain the following indicators: 1) indicators of the insurance services provided (rating assessment, assessment of the competitiveness of services and others.); 2) financial indicators (assessment of the level of solvency and financial stability of the organization and others.); 3) social indicators (assessment of the level of salary arrears and others.) american journal of business management, economics and banking volume 20 january, 2024 p a g e | 247 www.americanjournal.org the main consumers of the rating assessment are actual (genuine) and potential (possible) policyholders. since their interest is focused on the possibility of the company's full and timely fulfillment of its obligations under existing (functioning) insurance policies, as well as the prospects for fulfilling newly emerging obligations, taking into account likely changes in the economic environment, two key indicators are considered when determining the level of reliability: the company's solvency and its financial stability. [4, p.187]. in conclusion, therefore, it is necessary to evaluate not only the "instantaneous" solvency coefficient, but also the probability of the company to maintain the current level of solvency in case of possible external and internal threats, that is, its financial stability. in fact, the company's activity must necessarily be considered as some kind of unforeseen process as an indicator in which its solvency is considered, and the probability is estimated that the trajectory of this process in conditions of internal and external risks in the final interval will not cross the established lower limit of the acceptable level of solvency, which may lead to bankruptcy. references 1. ivanov m. theoretical aspects of insurance // insurance review. – 2004. – 7(123). – p. 20. 2. railyan a.i. insurance contract under the draft civil code // history of the state and law. 2007. – no. 7. – p. 33. 3. klochenko l.n., pylov k.i. fundamentals of insurance law: study. settlement – yaroslavl: nord. – 2002. – p. 4. 4. avdiyskiy v.i., dadalko v.a. shadow economy and economic security of the state. a study guide. 2nd edition. moscow: infra-m, 2014. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 97 www.americanjournal.org specific aspects of the recognition of liabilities jabbarova charos aminovna phd student of fiscal institute of the republic of uzbekistan a b s t r a c t k e y w o r d s this article dedicates to research the recognition and valuation of liabilities including the recognition, valuation and reflection of assessed liabilities in accounting and conclusions are formulated based on the results of the study. liabilities, long-term and current liabilities, explicit liabilities, indefinite liabilities, estimated liabilities, conditional liabilities. introduction it is important to form accurate and reliable information about liabilities in any business entity, to form complete information about liabilities and contingent liabilities assessed in the assessment of the financial situation. therefore, recognizing, evaluating, accounting, reflecting in financial statements and clarifying information about estimated liabilities and contingent liabilities in uzbekistan is one of the urgent issues of today. the law "on accounting" of the republic of uzbekistan (law, 2016) states that economic transactions related to obligations and their movement are the object of accounting. at the same time, contingent assets and liabilities must be reflected in accordance with accounting standards. in particular, part 3 of standard no. 21 defines the accounts intended for summarizing information about the obligations of a business entity to legal entities and individuals, and methodological instructions for accounting for obligations using them are given. also, the procedure for reflecting obligations in the passive part of the accounting balance, which is a form of financial reporting, is established (rules, 2022). it can be seen that in our national accounting and reporting system, the procedure for separately accounting and reflecting the estimated liabilities and contingent liabilities in the financial report is not indicated. if we look at the international standards of financial reporting, the accounting of estimated liabilities and contingent liabilities and their reflection in financial statements is regulated by the international accounting standard (ias, 37) entitled "estimated liabilities, contingent liabilities and contingent assets" no. 37. it states that the objective of this international standard is to ensure that appropriate recognition criteria and valuation bases are applied to measured liabilities, contingent liabilities and contingent assets, and that sufficient disclosure is provided in the notes to enable users to understand their nature, timing and value. however, in practice, as a result of the incorrect interpretation of the rules set forth in ias no. 37 in calculating, accounting, reflecting in the financial statement and explaining the information in the comments to the liabilities and contingent liabilities assessed by american journal of business management, economics and banking volume 22 march 2024 p a g e | 98 www.americanjournal.org some business entities, the users of the information are not provided with enough information to understand their nature, time and value. not provided. this has a negative impact on making rational management decisions regarding their accounting and financial reporting. literature review of course, several studies have been conducted on the recognition, measurement, accounting and financial reporting of liabilities. in particular, economists needles b., anderson h. and caldwell d., dividing liabilities into long-term and current liabilities, classify current liabilities as follows: 1. net identified liabilities: accounts payable, notes payable, interest payable, supplies, payroll, sales tax payable, current portion of long-term payables. 2. estimated liabilities: product warranty liabilities. 3. contingent liabilities: litigation, discount on a note receivable, income tax payments due under certain conditions (needles, anderson and caldwell, 2022). this classification of current liabilities by these authors is correct if we proceed from their content. however, these three categories do not reveal the full composition of obligations. discussion and analysis although liabilities generally appear on the balance sheet as sources of assets, each has a different economic meaning, components, and other fundamental distinguishing characteristics. currently, considerable attention is paid to the estimated liabilities as a liability with an uncertain performance period or an uncertain value. the issue of estimated liabilities and their composition remains controversial in the majority of research papers. estimated liabilities are liabilities that are recognized as liabilities (believed to be reliably measurable) because there is an existing liability and it is probable that an outflow of resources embodying economic value will be required to settle the liability. as it has been emphasized by s.n. tashnazarov, r. hermanson includes only liabilities related to product guarantees in the estimated liabilities (tashnazarov, 2016), while b. needles also includes liabilities for income tax, property tax and annual leave in this group. in his research article, d.v. lugovskoy distinguishes the types of liabilities that form the accounting data (lugovskoy, 2014), including: – estimated legal liabilities, i.e. future probable liabilities, which are related to specific events, liabilities with a clear deadline or duration and having legal force. for example, payments that are paid when an employee is dismissed due to the fault of the employer; – estimated conclusive (final) legal liabilities, i.e. liabilities arising from the nature of regularity. an example of this is the warranty liability to the consumer; – estimated conclusive liabilities, first of all, liabilities related to the specific characteristics of the company’s activities, rather than the applicable statutory acts and business contracts. the author proposes to group them and classify them according to their specific characteristics so that the analytical calculation of liabilities can be carried out more accurately. we share the opinion of d.v. lugovskoy, and we believe that the data on liability accounting should be classified according to the following areas in order to make it more clear and understandable for the users: liabilities in the field of production; liabilities in the field of service; american journal of business management, economics and banking volume 22 march 2024 p a g e | 99 www.americanjournal.org liabilities in the field of work performance; liabilities of the financial system; liabilities of the insurance sector; liabilities arising in rental (leasing) relations; liabilities related to trade operations. it should be noted that liabilities related to the specific characteristics of the company occur because of economic operations in each field of activity. although they are essentially the same, they require a different accounting approach. more stable economic indicators can be achieved through the correct formulation of analytical accounting data for each type of liability. as a continuation of this opinion, a. tuychiev cites the following classification of obligations according to international standards: creditor debts related to the main activity; accrued deductions; loans and debts received; estimated liabilities (reserves); contingent liabilities (tuychiev, 2011). according to a. tuychiev, the inclusion of creditor debts related to the main activity in the structure of liabilities, which is said to be in accordance with international standards, is controversial in our opinion. because this author did not take into account obligations not related to the main activity in the list of obligations. this raises the question of whether payables that are not related to the main activity are not considered liabilities. therefore, it would be appropriate if the author expresses his opinion on this issue. noting that the approaches to the classification, recognition and evaluation of liabilities in the scientific and educational works of the above economists are of both theoretical and practical importance, we would like to touch on the issues of recognition and evaluation of liabilities and contingent liabilities assessed according to the international standards of financial reporting below. liabilities assessed in accordance with ias no. 37 should be recognized in the following cases: when the organization has legal or constructive responsibility as a result of previous events; when there is a possibility of requiring the outflow of resources embodying economic value in order to fulfill the responsibility; when the liability value can be reliably estimated (ias, 37). therefore, when recognizing an estimated obligation, the existence of its liability is first assessed. after that, it is studied that there is also the possibility of the outflow of resources that embody the economic name in order to extinguish the liability. in this case, if there is no possibility of existing responsibility, if there is little possibility of outflow of resources embodying economic value, it is not recognized as an estimated obligation, but it is explained as a contingent obligation. it is necessary to determine an estimate of the liability that is sufficiently reliable to be used in recognizing liabilities that meet the above two criteria. if it is not possible to determine the accounting value of the liability, such liability should be disclosed in the financial statement as a contingent liability. it should be noted that it is important to study whether the value of the liability can be reliably estimated, which is the third condition in the verification of compliance with the recognition criteria for estimated liabilities. for this reason, business entities are responsible for the results of economic transactions with a high probability of outflow of resources for their implementation, the experience of performing similar obligations, as well as the conclusions of independent experts, where necessary, the accounting estimates are determined based on their professional approach (judgment). in this case, the business entity can use different methods depending on the situation in order to reliably estimate american journal of business management, economics and banking volume 22 march 2024 p a g e | 100 www.americanjournal.org the amount that should be recognized as an estimated liability. of course, the business entity provides documentary evidence confirming the validity of such assessment. conclusions and suggestions the following conclusions were formed as a result of research on the recognition and assessment of obligations in accordance with national and international standards: based on studies, the recognition of obligations should be verified by sequentially fulfilling the conditions of the existence of responsibility, the possibility of the outflow of economically useful resources, and the ability to reliably estimate the value of the responsibility. in any case, the recognition of obligations as estimated obligation or contingent obligation, the condition of existence of liability must be fulfilled. even when the condition for recognition of contingent liabilities is met, they should be disclosed in the appendices of the financial statements. references 1. law (2016). law of the republic of uzbekistan "on accounting" (new version). april 13, 2016. no. o'rq-404. 2. standard (2002). the national accounting standard of the republic of uzbekistan no. 21 "on approval of the plan of financial and economic accounting reports of economic entities and the guidelines for its application". 3. rules (2002). appendix no. 1 to the order of the minister of finance of the republic of uzbekistan no. 140 of december 27, 2002. 4. standard (2022). international accounting standard no. 37 "estimated liabilities, contingent liabilities and contingent assets" 5. kozimjonov a (2021). specific aspects of the emergence of debt obligations in international financial statements. scientific electronic magazine "economy and innovative technologies". no. 5., pp. 73-79. 6. needles b., anderson h., caldwell d. (2002). principles of accounting. / per.s ang. a.v. chmelya, d.n. islamqulova; under ed. prof. ya. v. sokolova. m.: finance and statistics, 495 p. 7. pyatov m.l (2004). upravlenie obyazatelstva organizatsii. m.: finance and statistics, 256 p. 8. tuychiev a.j (2011). theoretical and methodological problems of liability accounting and analysis. diss. ... iqt.fan.doc. dissertation written for a degree. t.: -316 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 181 www.americanjournal.org the influence of information technology usage on the efficiency and effectiveness of accounting information systems and its impact on investment decisions: a survey study ali t.m. kadawi university of sfax/tunisia alitalall522@gmail.com khamoussi halioui university of sfax higher school of commerce, tunisia khamoussi.halioui@gmail.com a b s t r a c k e y w o r d s the study aimed, on its theoretical side, to explain the impact of using information technology with its various multiple techniques on the efficiency and effectiveness of accounting information systems and how it reflects on investment decisions. this was achieved through reviewing the most important previous studies related to the research topic. additionally, the study reviewed the significant technological innovations resulting from the fourth industrial revolution. regarding the practical aspect of the study, a questionnaire was formulated, consisting of two main axes, each containing five questions. the study's sample consisted of academic professionals working in the faculties of management and economics at iraqi universities, specializing in accounting and finance. the study's results revealed positive and statistically significant differences in the use of information technology techniques on the efficiency and effectiveness of accounting information systems, with a positive impact on improving investment decision-making. accounting information system, information technology, investment decision introduction in the dynamic landscape of contemporary business and finance, the synergy between information technology (it) and accounting information systems (ais) plays a pivotal role in shaping the efficiency and effectiveness of financial reporting and disclosure mechanisms (al-okaily et al., 2020). this study embarks on an exploration of this symbiotic relationship, with a specific focus on its ramifications for investment decisions (inv. dec.). through a comprehensive survey study, we aim to american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 182 www.americanjournal.org unravel the intricacies of how it usage influences ais and, subsequently, the decisions made by investors. the proliferation of it solutions and digital innovations has ushered in a new era for ais. traditional manual processes have given way to automated systems, data analytics, and real-time reporting capabilities (djanegara et al., 2018). while these advancements hold the promise of enhancing the efficiency and effectiveness of ais, they also present challenges related to data security, system reliability, and adaptation to evolving technological landscapes (thabit, 2019). as organizations increasingly rely on ais-generated financial information, it becomes crucial to understand how these transformations affect inv. dec. (abernathy et al., 2020). this study aims to investigate the influence of it usage on the efficiency and effectiveness of ais by assessing the extent to which it adoption impacts the efficiency of financial data processing within ais, examining the role of it in enhancing the effectiveness of ais in terms of data accuracy, timeliness, and relevance, and analyzing how it-induced improvements in ais influence inv. dec. made by various stakeholders. in an era where data-driven decision-making is paramount, our findings may offer valuable insights for organizations seeking to optimize their ais and harness the power of it for more informed investment strategies. ultimately, this study contributes to the broader discourse on the intersection of technology, accounting, and finance in the contemporary business landscape. 1. literature review and hypotheses development: 1.1 it techniques: information technology (it) is an omnipresent force that has revolutionized the way we live, work, and interact with the world (dos santos et al., 1993). in an era marked by unprecedented technological advancements, it has emerged as the driving force behind innovation and progress (van niekerk and rudman, 2019), (thabit, 2021). it encompasses a vast and dynamic field that involves the use of computers, software, networks, and digital systems to acquire, store, process, and transmit information (zhu and liu, 2023). it empowers individuals, organizations, and societies to harness the power of data and knowledge for a multitude of purposes, ranging from communication and decision-making to entertainment and scientific exploration (khorashadi et al., 2017). the evolution of it is characterized by exponential growth and rapid innovation. each decade has witnessed groundbreaking developments, from the birth of the internet in the 1960s to the proliferation of smartphones, artificial intelligence, and cloud computing in recent years (janvrin and wang, 2019). these advancements have not only expanded the capabilities of it but have also led to its integration into virtually every aspect of our daily lives. it has left an indelible mark on society, the economy, and culture. in the business world, it has streamlined operations, enhanced productivity, and facilitated global commerce through e-commerce platforms (thabit et al., 2021). it has transformed healthcare with electronic medical records and telemedicine, revolutionized education with online learning, and reshaped entertainment with streaming services (jarah et al., 2023). furthermore, it has spurred innovation across various industries, from autonomous vehicles to renewable energy solutions (wu et al., 2019). it has opened new frontiers in scientific research, enabled efficient data analysis, and accelerated the pace of discovery (janvrin and wang, 2019), (thabit et al., 2020). the fusion of it with artificial intelligence and machine learning promises even greater possibilities, from self-learning algorithms to personalized medicine. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 183 www.americanjournal.org due to the intertwining of it with every aspect of life, it was necessary for the field of accounting, with all its systems, to adapt to the developments that emerged in the business environment as a result of adopting fourth industrial revolution technologies (i4), represented by metaverse technology. this has produced a range of modern and new technologies that have directly impacted ais. the most important of these technologies, as indicated by many researches, can be presented as follows in table 1. table 1: the most common it techniques it technique application in ais references internet of things (iot) it involves physical components embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data and information with other devices and systems over the internet (faccia and petratos, 2021) (ionescu, 2019) block chain it is an advanced database technology that serves as an open ledger allowing for transparent sharing of information within a business network (fullana and ruiz, 2021) (alsaqa et al., 2019) (sarwar et al., 2021) (inghirami, 2019) robots it is an automated software application that performs repetitive tasks on a network, following specific instructions to mimic human behavior but in a faster and more accurate manner than humans (tsoraya et al., 2023) (pebrina et al., 2022) (vasarhelyi, 2013) cryptocurrencies they are currencies whose value is determined by the principles of supply and demand and are conceptually similar to commodities like gold (yen and wang, 2021) (cazazian, 2022) (paulsson and brady, 2022) (mosteanu and faccia, 2020) cloud computing it's a modern and crucial technology that allows renting infrastructure services and storing data and applications on servers or data centers (moudud-ul-huq et al., 2020) (brandas et al., 2015) (shkurti and muça, 2014) (schmidt and gal, 2020) big data analysis it involves the use of advanced analytical techniques to analyze and understand large and diverse datasets, including structured, unstructured, and semi-structured data. (huerta and jensen, 2017),. (bhimani and willcocks, 2014) (gartner and hiebl, 2017), (vasarhelyi et al., 2015) data mining techniques it is a technique that involves computer-assisted analysis for processing and exploring a large dataset using data mining tools and methods, enabling units to discover hidden patterns and relationships in the data (rodger, 2003) (chahadah et al., 2018) (xiao et al., 2010) (musa et al., 2019) digital assets it encompasses digital documents, audio content, moving images, and other digital data that is currently in circulation or will be stored on digital devices such as personal computers, laptops, media players, data storage devices, and communication devices (de haes et al., 2016) (vasarhelyi and greenstein, 2003) (farhan and kawther, 2023) chat gpt website this website is one of the modern online platforms used for answering various text-based questions and automating many tasks, such as composing email messages and obtaining information in the fields of accounting and auditing. (wood et al., 2023) (al-ghatrifi et al., 2023) (eulerich et al., 2023) from table 1, we can see that each type of technology produced by the it revolution mentioned above has directly or indirectly impacted ais. ultimately, this impact will focus on improving the efficiency and effectiveness of ais, which is the foundation for providing accounting information disclosed american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 184 www.americanjournal.org through financial statements and reports to both internal and external users. this improvement will reflect on enhancing the efficiency and effectiveness of their inv. dec. 1.2 efficiency and effectiveness of ais: accounting information systems (ais) play a pivotal role in modern organizations, serving as the backbone of financial management and decision-making processes. the efficiency and effectiveness of ais are critical factors that can significantly influence an organization's success. this literature review explores various aspects of ais efficiency and effectiveness, highlighting key concepts, factors, and the impact of technological advancements. 1.2.1 efficiency in ais: efficiency in ais refers to the ability of the system to process financial transactions and generate financial reports accurately, quickly, and with minimal resource consumption. several factors contribute to ais efficiency (djanegara et al., 2018), (zhu and liu, 2023), (jarah et al., 2023): − automation: automation of routine accounting tasks, such as data entry and reconciliation, reduces the likelihood of errors, speeds up processes, and saves time and resources. − data integration: efficient ais should seamlessly integrate data from various sources within an organization, minimizing duplication and ensuring data consistency. − scalability: scalable ais systems can adapt to an organization's changing needs without a significant increase in costs or resource allocation. − user-friendly interfaces: user-friendly interfaces and intuitive design enhance the efficiency of ais by reducing the learning curve for users and improving data input accuracy. 1.2.2 effectiveness in ais: effectiveness in ais refers to the system's ability to provide timely, relevant, and accurate information to support decision-making. key factors contributing to ais effectiveness include (al-okaily et al., 2020), (fullana and ruiz, 2021), (inghirami, 2019): − data accuracy: accurate data is fundamental for effective decision-making. ais must maintain data integrity to ensure the information generated is reliable. − timeliness: ais should provide real-time or near-real-time access to financial information, allowing organizations to respond quickly to changing circumstances. − customization: effective ais systems allow for the customization of financial reports and dashboards to meet the unique needs of users and decision-makers. − security: ensuring the security of financial data is crucial for maintaining the trust of stakeholders and protecting sensitive information from unauthorized access. 1.3 it and ais it has revolutionized the way businesses process, store, and analyze financial data. traditional manual accounting processes have been replaced by sophisticated ais that incorporate it components such as databases, software applications, and hardware infrastructure. these systems are designed to enhance the efficiency and accuracy of financial data management (thabit and jasim, 2019), (musa et al., 2019). 1.3.1 enhanced efficiency the utilization of it in ais streamlines routine accounting tasks such as data entry, ledger maintenance, and reconciliation. automation reduces the risk of errors inherent in manual processes, leading to american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 185 www.americanjournal.org improved efficiency. additionally, it enables real-time data processing, allowing organizations to access up-to-date financial information, thereby expediting decision-making processes. 1.3.2 improved accuracy accuracy is paramount in accounting, and it plays a crucial role in achieving this. through features like data validation and automatic calculations, it minimizes the chances of human error in financial reporting. moreover, it-based ais can cross-verify data, enhancing data accuracy and integrity. 1.4 ais and inv. dec. ais plays a crucial role in providing the financial information necessary for investors to make informed decisions about allocating their capital. some researchers mentioned to key ways in which the efficiency and effectiveness of ais influence inv. dec. (abernathy et al., 2020), (alawaqleh and al-sohaimat, 2017): 1.4.1 timely access to information: − efficiency: an efficient ais processes financial data quickly and provides investors with up-to-date information. timely access to financial reports and data is essential for investors to assess a company's current financial health and performance. delayed or outdated information can lead to suboptimal inv. dec. − effectiveness: an effective ais ensures that financial data is accurate and reliable. investors can trust the information they receive, which is crucial for making informed inv. dec. accurate data allows investors to assess a company's financial position accurately, leading to more confident investment choices. 1.4.2 data accuracy and integrity: − efficiency: an efficient ais reduces the likelihood of errors in financial data processing. automation and streamlined processes minimize the risk of human error, which can lead to incorrect financial reporting. reliable financial data is essential for investors to evaluate a company's financial health and make inv. dec. − effectiveness: an effective ais not only maintains data accuracy but also ensures data integrity. data integrity means that financial data is protected from unauthorized changes or tampering. investors can have confidence that the financial information they rely on for inv. dec. has not been compromised. 1.4.3 advanced analysis and insights: − efficiency: an efficient ais can process large volumes of data quickly, allowing for more in-depth analysis. investors can use advanced analytics to identify trends, patterns, and anomalies in financial data. this deeper analysis provides valuable insights into a company's financial performance and growth prospects. − effectiveness: an effective ais is capable of generating comprehensive financial reports and conducting complex data analysis. these reports provide investors with a holistic view of a company's financial health, including key performance indicators, profitability ratios, and liquidity ratios. such insights are critical for making well-informed inv. dec. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 186 www.americanjournal.org 1.4.4 transparency and compliance: − efficiency: an efficient ais can help organizations streamline compliance processes, reducing the administrative burden associated with regulatory requirements. this can lead to cost savings for the company, potentially benefiting investors indirectly through improved financial performance. − effectiveness: an effective ais ensures that the company complies with accounting standards and regulations. compliance enhances transparency in financial reporting, making it easier for investors to assess a company's adherence to industry standards. transparent financial reporting builds trust and confidence among investors. generally, the efficiency and effectiveness of ais have a direct impact on inv. dec. an efficient ais provides timely access to accurate financial data, while an effective ais ensures data integrity and offers advanced analysis capabilities. these attributes collectively enable investors to assess a company's financial health, make informed investment choices, and manage risk effectively. companies with well-designed and well-operated ais are more likely to attract and retain investors, which can have a positive impact on their access to capital and overall growth. h1: there is a statistically significant impact of using it on inv. dec via enhancing the efficiency of ais. h2: there is a statistically significant impact of using it on inv. dec via enhancing the effectiveness of ais. 2. the research framework: figure 1 show the research framework, illustrating the proposed relationships between the variables. information technology (it), the independent variable (indv), can directly affect investment decisions (inv. dec.), the dependent variable (dv). moreover, it (indv) can also indirectly impact inv. dec. (iv) through efficiency and effectiveness of ais figure 1: the study framework (modified by adding h1 and h2) 3. methodology: in order to evaluate the proposed hypotheses, it is essential to collect data from real-world scenarios. this study employs a quantitative approach, and the data were collected from academics specialized in the fields of accounting and finance working in the faculties and higher schools of management and economics at iraqi universities. in total, (42) electronic forms were distributed, and (37) valid forms suitable for statistical analysis were collected. the researchers used the statistical software package (spssv26) to analyze the responses and obtain the results. the data collection phase extended over 30 information technology (it) efficiency of ais investment decisions (inv. dec.) effectiveness of ais h1 h2 h1 h2 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 187 www.americanjournal.org days, for june 2023. the questionnaire employed a "5-point likert scale" to facilitate respondent comprehension. the cronbach's alpha coefficient was used to test the reliability and consistency of the questionnaire, and the results were high, indicating that the alpha values for all the questions were greater than (0.5). this means that the consistency in responses was high, demonstrating the validity of the questionnaire items, as shown in table 2: table 2: the reliability coefficient (cronbach's alpha) hypothesis the context of hypothesis no. of paragraphs cronbach's alpha h1 there is a statistically significant impact of using it on inv. dec via enhancing the efficiency of ais 5 0.756 h2 there is a statistically significant impact of using it on inv. dec via enhancing the effectiveness of ais 5 0.944 total 10 0.890 4. results: 4.1 demographic profile table 3 shows the demographic picture of the research sample with regard to the four characteristics (educational qualification, scientific title, academic specialization, years of experience) and the proportions of each variable in the sample. table 3: the demographic profile variable sources of variation frequency percentages (%) educational qualification doctorate 9 24 master's degree 26 70 postgraduate diploma 2 6 educational title professor 5 14 asst. professor 8 22 lecturer 15 40 asst. lecturer 9 24 academic discipline accounting 23 62 finance 14 38 years of service less than 10 years 5 13 10-20 years 15 41 21-30 years 10 27 more than 30 years 7 19 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 188 www.americanjournal.org hypothesis testing and analysis 5.2.1. test of hypothesis 1: there is a statistically significant effect of using it on the efficiency of ais, which positively impacts inv. dec. by measuring the opinions of the study's sample groups regarding the first hypothesis questions, the following becomes evident: table 4: analysis of study sample responses regarding the first hypothesis no paragraphs the arithmeti c mean stander deviatio n agree and strongly agree neutra l do not agree strongly disagree 1 the input devices produced by it contribute to covering all the data prepared for processing 3.97 0.99 30 4 3 2 it software is characterized by a high level of flexibility in conducting operational processes and updates, which benefits inv. dec. makers 4.16 1.08 36 1 0 3 networks and communications contribute to providing and updating information outputs accurately and quickly for inv. dec. makers 4.03 1.01 30 5 2 4 it has led to the immediate feedback imposed on the elements of ais, contributing to the instant detection of errors 4.35 1.16 37 0 0 5 it contributes to achieving accuracy in accounting measurement processes due to the rarity of errors in the outputs 4.24 1.12 34 2 1 overall average 4.15 1.07 it can be observed from table (4) that the degree of agreement with the statements of the first hypothesis all came with an 'agree' response, indicating that most of the statements have a statistically positive significance from the perspective of the study sample. the overall arithmetic mean for the first hypothesis as a whole was (4.15), with a standard deviation of (1.07). therefore, the first hypothesis will be accepted as is. it is worth noting that the fourth question ranked first with the highest acceptance rate (100%) with an average score of (4.35) and a standard deviation of (1.16). to check if there are significant differences between the respondent’s perceptions with regard to the first hypothesis, we used the anova test for the five items crossed with the four profile characteristics. table 5 below shows the following results. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 189 www.americanjournal.org table 5 : analysis of variance for personal variables regarding the first hypothesis variable sources of variation sum of squares degrees of freedom mean squares fvalue sig. significance educational qualification among categories 8211.216 2 4105.608 5.940 0.003 there are significant differences among the academic qualification categories in favor of the ph.d. within categories 264020.955 34 691.154 all 272232.171 36 educational title among categories 7196.124 3 2398.708 3.448 0.017 there are significant differences among academic title categories in favor of the title prof. within categories 265036.047 33 695.633 all 272232.171 36 academic discipline among categories 12594.272 4 3148.568 4.437 0.002 there are significant differences among scientific specialization categories in favor of the accounting specialization within categories 269637.900 32 709.573 all 272232.171 36 years of service among categories 4291.773 3 1430.591 2.034 0.109 there are no significant differences among the categories of years of service within categories 267940.399 33 703.256 all 272232.171 36 the results of table (5) indicate, through the level of significance, that there are statistically significant differences in the answers of the research sample with regard to the first hypothesis, according to the three first demographic variables: academic qualification (phd); academic title (professor); and the scientific specialization (accounting). however, there are no statistically significant differences in the years of service, as the value of (sig) is (0.109), which is greater than the level of significance (0.05). 5.2.2. test of hypothesis 2: there is a statistically significant impact of using it in its various forms on the effectiveness of ais and this has a positive effect on inv. dec. table 6 : analysis of study sample responses regarding the second hypothesis no. paragraphs the arithmetic mean stander deviation agree and strongly agree neutral do not agree strongly disagree 1 it, in its various technologies, has influenced the appropriateness of accounting information and has reflected positively on the decision-making orientations of inv. dec. makers 4.08 1.04 30 5 2 2 it has influenced the property of accurate representation of economic events in accounting information, and this has had a positive impact on the inv. dec. making orientations 4.32 1.15 35 1 1 3 it has influenced the property of predictive value of accounting information, and this has reflected positively on assisting inv. dec. makers in predicting future events 4.22 1.10 34 2 1 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 190 www.americanjournal.org 4 it has influenced the property of comparability of accounting information with previous and subsequent events, and this has reflected positively on improving inv. dec. 3.97 0.99 31 3 3 5 it has influenced the property of timely information in accounting and has resulted in not withholding any information from inv. dec. makers. 4.38 1.17 37 0 0 overall average 4.19 1.09 table (6) shows that the degree of agreement with the statements of the second hypothesis all came with an 'agree' response, indicating that most of the statements have a statistically positive significance from the perspective of the study sample. the overall arithmetic mean for the second hypothesis as a whole was (4.19), with a standard deviation of (1.09). therefore, the second hypothesis will be accepted as is. it is worth noting that the fifth question ranked first with the highest acceptance rate (100%) with an average score of (4.38) and a standard deviation of (1.17). to check if there are significant differences between the respondent’s perceptions with regard to the second hypothesis, we used the anova test for the five items crossed with the four profile characteristics. table 7 below show the following results. table 7 : analysis of variance for personal variables with respect to the second hypothesis variable sources of variation sum of squares degrees of freedom mean squares fvalue sig. significance educational qualification among categories 2273.714 2 1136.859 5.102 0.007 there are significant differences among the academic qualification categories in favor of the ph.d. within categories 85116.425 34 222.819 all 87390.141 36 educational title among categories 1487.561 3 495.854 2.199 0.088 there are no significant differences between the scientific title categories within categories 85902.580 33 225.466 all 87390.140 36 academic discipline among categories 3811.412 4 952.853 4.173 0.003 there are significant differences between the academic qualification categories in favor of accounting within categories 86778.730 32 228.365 all 87390.140 36 years of service among categories 1688.556 3 562.852 2.502 0.059 there are no significant differences between the categories of years of service within categories 85701.584 33 224.939 all 87390.140 36 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 191 www.americanjournal.org it is noted from table (7) that the results indicate, through the level of significance, that there are statistically significant differences in the answers of the sample members regarding the second hypothesis according to the first and the third demographic variables (educational qualification (phd) and academic discipline (accounting) ) where the value of (sig) was respectively (0.007) and (0.003), whereas, there are no statistically significant differences with regard to the second and the fourth demographic variables (educational title and years of services) where the values of (sig) are respectively (0.088) and (0.053), both of which are greater than the level of significance (0.05). conclusions and recommendations: 4.2 conclusions: based on the descriptive and analytical aspects of the study, the researchers have arrived at the following conclusions: 1. the use of it in its various forms has positively impacted the efficiency and effectiveness of ais by increasing speed, storage capacity, accuracy, and reducing costs and staff requirements. 2. the use of it has affected the elements of ais, resulting in high accuracy and suitability of accounting information, an increase in the number of beneficiaries, and a positive impact on the orientations and decisions of investors. 3. the use of it techniques in the development of ais enables decision-makers to access accounting information from anywhere and at any time. 4. the arithmetic mean for both hypotheses was high according to the responses of the surveyed sample. this indicates the acceptance of both hypotheses related to the study. specifically: a) there is a statistically significant impact of using it in its various forms on the efficiency of ais, and this reflects positively on inv. dec. this hypothesis had an overall arithmetic mean of (4.15) with a standard deviation of (1.07). b) there is a statistically significant impact of using it in its various forms on the effectiveness of ais, and this reflects positively on inv. dec. this hypothesis had an overall arithmetic mean of (4.19) with a standard deviation of (1.09). 5. the results of the variance test (anova test) showed that there were statistically significant differences in the answers of the study sample members regarding the first hypothesis according to the variable of academic qualification, doctorate, academic title of professor, and academic specialization in accounting, where the value (and sig) of these variables was less than the level of significance (0.05). 6. the results of the (anova test) showed that there were statistically significant differences in the answers of the study sample members regarding the second hypothesis according to the variable of academic qualification, doctorate, and academic specialization in accounting, as the value reached (sig) and these two variables were less than the level of significance (0.05). 4.3 recommendations: 1. it is imperative for economic entities to leverage various it techniques to support the efficiency and effectiveness of their ais, benefiting inv. dec. makers through the following: a) utilizing cloud computing technology in digital storage operations. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 192 www.americanjournal.org b) harnessing block chain technology for transparent information exchange as it provides an open ledger. c) employing big data analytics technology for analyzing and understanding vast and large datasets. d) utilizing robotics technology to perform accounting tasks faster and more accurately than humans. e) leveraging data mining technology for processing large datasets and discovering hidden relationships in data. f) utilizing the capabilities of ai-driven platforms like gpt-3 for obtaining diverse and real-time answers to text-based questions related to accounting domains. 2. it is essential to continue conducting research and studies by researchers in the accounting field in light of the advancements occurring in the field of it and introducing new variables that have not 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(2023), “the chatgpt artificial intelligence chatbot: how well does it answer accounting assessment questions?”, issues in accounting education, pp. 1-28. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 195 www.americanjournal.org 44. wu, j., xiong, f., and li, c. (2019), “application of internet of things and blockchain technologies to improve accounting information quality”, ieee access, 7, pp. 100090-100098. 45. xiao, m., xiaoli, h., and gaojin, l. (2010), “research on application of data mining technology in financial decision support system”, in 2010 3rd international conference on information management, innovation management and industrial engineering (vol. 4, pp. 381-384). ieee. 46. yen, j., and wang, t. (2021), “stock price relevance of voluntary disclosures about blockchain technology and cryptocurrencies”, international journal of accounting information systems, 40, 100499. 47. zhu, h., and liu, c. (2023), “application of 5g internet of things in the construction of enterprise management accounting information system”, soft computing, 27(18), pp. 12979 12996. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 113 www.americanjournal.org the impact of financial statement analysis on achieving competitive advantage for private commercial banks taleb hmad awad accounting techniques dept., technical institute of anbar, middle technical university, iraq. talebhmad@mtu.edu.iq a b s t r a c t k e y w o r d s private commercial banks are among the most important institutions in the financial sector, playing a crucial role in supporting economic growth and financing business activities. achieving competitive advantage is vital to the continuity of these banks' businesses in a competitive market. financial statement analysis is considered a strategic tool that enables banks to understand their financial performance and make the right decisions. this research examines the impact of financial statement analysis on achieving competitive advantage for private commercial banks, including ashur national bank in iraq as a sample for research during the period (2010-2021). this research used the statistical analysis method using the statistical program (eviews9) in order to measure and analyze the relationship between some financial ratios and their impact on achieving competitive advantage (increasing the number of banks). this research reached the conclusion that the bank does not use financial ratio analysis to achieve competitive advantage during... the mentioned period. financial statement, competitive advantage, commercial banks. introduction private commercial banks face increasing challenges in a changing and competitive economic environment. in order to survive and thrive in this context, these banks must achieve a competitive advantage that enables them to meet market needs and attract customers and investors. in this context, the importance of analyzing financial statements is highlighted as a basic tool for understanding and evaluating the financial and operational performance of banks. however, questions remain regarding how to achieve an effective impact of financial statement analysis in achieving the competitive advantage of private commercial banks. the research should focus on the following aspects: • the extent to which financial statement analysis affects the ability of private commercial banks to achieve competitive advantage in light of the continuous changes in the surrounding environment. american journal of business management, economics and banking volume 23 april 2024 p a g e | 114 www.americanjournal.org • the challenges and difficulties that banks may face in the process of analyzing financial statements and translating the results into effective strategies that contribute to achieving competitive advantage. • identifying the pivotal factors in the analysis of financial statements that have a direct impact on achieving competitive advantage, such as financial liquidity, profitability, debt structure, and others. this problem requires a comprehensive analytical study to understand how the analysis of the financial statements of private commercial banks achieves competitive advantage, as well as identifying the factors influencing this process. research importance : 1. improving strategic decision-making: financial statement analysis gives private banks a deep understanding of their financial performance and competitive position. this helps it make better strategic decisions that enhance its ability to compete in a volatile market. 2. evaluating financial health: by analyzing financial statements, private commercial banks can evaluate the extent of their financial health or vulnerability. this helps it take early corrective action before problems turn into crises. 3. identifying growth and expansion opportunities: analysis of financial statements can help banks identify new markets and investment opportunities that can contribute to achieving sustainable growth and increasing competitive advantage. 4. attracting investors and clients: investors and clients depend on analyzing financial statements to evaluate the creditworthiness of banks. banks that provide clear and understandable financial information are more attractive to them. 5. enhancing trust and transparency: by analyzing financial statements and presenting the results in a transparent manner, banks increase the level of trust among the public and regulators, which contributes to building a strong reputation. 6. facing financial challenges: in facing financial challenges such as economic crises, financial statement analysis can help banks identify areas of weakness and develop strategies to overcome those difficulties. 7. improving financial and operational performance: analysis of financial statements contributes to improving banks’ performance and increasing their profitability and 8. emphasis on financial transparency: in light of regulatory developments and financial laws, analysis of financial statements enhances banks’ commitment to financial transparency and disclosure standards. 8. in general, this research shows the importance of the interaction between financial statement analysis and achieving competitive advantage for private commercial banks, which contributes to enhancing their sustainability and ability to adapt to changing challenges in the financial and economic environment. effectiveness in using resources. research aims: 1. analyze the importance of the competitive advantage of private commercial banks and their role in achieving institutional success. 2. study the methods and tools of analyzing financial statements and how to apply them in the context of commercial banks. analyzing the impact of the results of financial statement analysis on formulating competitive advantage strategies. american journal of business management, economics and banking volume 23 april 2024 p a g e | 115 www.americanjournal.org research hypothesis: private commercial banks that invest in analyzing their financial statements accurately and comprehensively are attributable to achieving a greater competitive advantage in the financial market.” this hypothesis indicates that there is a positive relationship between financial statement analysis and achieving competitive advantage for private commercial banks. it is assumed that by utilizing financial statement analysis information, banks can identify current and future opportunities and challenges and make strategic decisions based on solid financial foundations. these decisions enable it to achieve improvements in its financial performance and increase its attractiveness to customers and investors, thus enhancing its position in the market and achieving competitive advantage. this hypothesis will require careful study and statistical analysis of the financial data and competitive performance of private commercial banks, with the aim of determining the extent to which financial statement analysis affects achieving that competitive advantage. research methodology : the research relied on combining the descriptive (theoretical) method and the quantitative (measurement) method using the statistical program (eviews 9) in order to measure and analyze the impact of financial statement analysis using financial ratios on the competitive advantage of one of the private banks in iraq during the period (2010-2021). temporal and spatial limits of research: spatial boundaries: the impact of analyzing financial statements using the financial ratios method on the competitive advantage of assyria national bank. spatial boundaries: duration (2010-2021). the research sample : assyria national bank was taken as a sample for the research, and the focus was on the following financial ratios (liquidity ratio, rate of return on assets, rate of return on equity, rate of return on capital for the years (2010-2021)) and the extent to which the bank uses these ratios in achieving one of the indicators of competitive advantage, which is increasing the number of its branches throughout the country. previous studies : 1. a field study of a sample of private contacts in iraq. a period of time ago, financial statement analysis was used to investigate another part of the iraqi gulf commercial bank. :this study examined the extent to which the bank’s management used analysis of the bank’s liquidity ratios for the period (2005-2022) in achieving competitive advantage by increasing the number of its depositors during the aforementioned period. the study looked at the bank’s management reports during the years of research. as well as conducting personal interviews with members of the board of directors and branch managers, as well as preparing a survey list for a number of department heads working in the bank. this study concluded that the bank’s management relies heavily on liquidity ratios in order to make important decisions in the field of improving the service provided to its customers. this was reflected positively in the increase in the number of its depositors during the aforementioned period. american journal of business management, economics and banking volume 23 april 2024 p a g e | 116 www.americanjournal.org 2. the use of financial indicators in islamic banks and their impact on achieving competitive advantages in iraq during the period (2007-2019). this study took a sample of three islamic banks in iraq during the period (2007-2019) and took a sample of the financial indicators. approved by the bank’s management to improve the quality of banking service provided by these banks and the extent to which it reflects on achieving a set of competitive advantages, this study used two types of questionnaires, the first type was distributed to members of the board of directors and branch managers of the sample banks, and the other type was distributed to a sample of the bank’s customers. this study concluded that bank departments rely heavily on the analysis of financial indicators in making their decisions to improve the quality of banking service, but this was not reflected in the achievement of competitive advantage for these banks during the aforementioned period. 3. measuring the extent to which financial statement analysis reduces the cost of services provided to customers for a sample of private banks in jordan during the period (2009-2017): this study took a sample of four private banks in jordan during the period (2009). (2017) and i took a sample of the approved financial indicators found in the financial statements published by the bank on the jordan securities commission website, and the extent to which the matter is reflected in the decisions of the managements of these banks to reduce the costs of providing customer services, which is one of the strategies for achieving competitive advantage. this study concluded that the managements of private banks in jordan mainly use the analysis of financial statements for previous years in order to reduce the current costs of customer services, which was reflected in a significant way. positively, reducing these costs for subsequent years, and thus reducing the total costs for these four banks. 4. an analytical study of the extent to which financial indicators analysis is used to achieve the ability to grow, expand and compete in the iraqi bank for trade and finance during the period (2005-2012): the bank’s analysis of the financial indicators in the bank for the period (2005-2012) in achieving growth, expansion and competition by increasing the number of its depositors, increasing the number of its branches, and increasing its capital. during the aforementioned period, the study reviewed the management reports of the bank during the years of research, as well as conducting personal interviews with members of the board of directors and branch managers. this study concluded that the bank’s management relies heavily on the financial indicators of banking performance in order to make its important decisions in the field of improving the service provided to its customers, and this was reflected positively in increasing the number of its depositors and increasing the number of its branches throughout the country. our current study differs from previous studies in the following: • by using real financial ratios published in the annual reports of assyria national bank and published on the official page of the iraqi securities commission, meaning its source of information is very reliable. • the time period (2010-2021), which is the most recent and comprehensive of previous studies. • using the statistical program (eviews 9) in order to measure and analyze the impact of analyzing financial statements using financial ratios on competitive advantage. this method is the most modern, comprehensive and accurate of the methods used in previous studies. american journal of business management, economics and banking volume 23 april 2024 p a g e | 117 www.americanjournal.org the first section: the theoretical framework for analyzing financial statements first: the concept of financial statement analysis financial statement analysis is the process of evaluating and understanding an organization’s financial performance by analyzing information such as financial statements, budgets, and financial reports (kanaan, 2013, p. 151). this analysis helps to make more understandable, evidence-based decisions and estimate the financial situation, operational performance, and ability to meet financial obligations. there are several concepts for analyzing financial statements, including (abu ahmed and kadouri, 2019, 275-280) : 1. financial ratios: financial ratios are used to measure the relationships between various financial statements and determine the financial performance of an organization. financial ratios include profitability ratios, liquidity ratios, debt ratios, return on investment ratios, and others. such as: the ratio of net profit to total revenue and the current liquidity ratio 2. time trend analysis: time trend analysis involves comparing financial data for different time periods to determine the evolutionary pattern of financial performance. this helps identify long-term trends and significant changes in performance. 3. vertical analysis: vertical analysis involves comparing financial statements with the financial statements of competitors or the industry in general. this analysis helps determine the organization's position within the market and its ability to compete. 4. analysis of assets, liabilities and return on investment: this analysis helps to understand how assets are used and financed and how to achieve return on investment. it also includes financial and debt structure analysis. 5. process and operational analysis: this analysis focuses on knowing how the organization manages its operations and costs and how to achieve operational efficiency. 6. comparative analysis: this analysis compares the organization’s performance with industrial standards or known indicators, which helps determine the extent of its superiority or decline. by applying this theoretical framework, private commercial banks can comprehensively evaluate their financial performance and make strategic decisions. second: objectives of financial statement analysis: 1. evaluating financial performance: financial statement analysis aims to estimate how the company is performing in achieving its financial goals, including achieving profits and increasing value for shareholders. 2. assessing the ability to sustain: by analyzing the financial statements, it is possible to judge the extent of the company’s ability to survive and face financial challenges in the future (frederick, 2020, p32). 3. liquidity assessment: financial statement analysis can help analyze companies’ liquidity, the extent of their ability to repay their debts, and deal with their financial obligations in the future. 4. financial soundness analysis: it helps to estimate the degree of financial soundness of companies and their ability to bear financial risks. 5. competitive performance analysis: by comparing the financial statements of companies with those that compete with them, one can estimate the companies’ performance compared to the market and industry. american journal of business management, economics and banking volume 23 april 2024 p a g e | 118 www.americanjournal.org 6. analysis of growth trends: it helps in analyzing growth trends in revenues, profits, and assets, which helps in predicting the future of the company (dosen, 2021, p45). 7. evaluating management efficiency: analysis of financial statements can help estimate the efficiency of the company’s management in using financial resources efficiently and achieving the company’s goals. 8. decision-making support: financial statement analysis provides the data and information necessary to make strategic decisions such as directing investment, evaluating financial policies, and determining growth strategies. third: the importance of analyzing the financial statements financial statement analysis is of great importance for several reasons, including: 1. understanding financial health: financial statement analysis can help estimate the financial health of a company or organization. this understanding allows investors, managers, and regulators to know whether the company is able to generate profits and meet its financial obligations. 2. decision making: financial statement analysis helps in making important decisions regarding investment, expansion, financing, and employment. this analysis can help make better and more impactful strategic decisions (toni 2019, p12). 3. performance evaluation: financial statement analysis allows the company's performance to be followed over time and to determine whether it achieves the specified financial goals. this analysis can also identify strengths and weaknesses in performance and work to improve it. 4. estimating financial soundness: financial statement analysis processes help estimate the company’s ability to financially endure and deal with risks. this analysis can also determine whether a company needs to improve its financial policy. 5. sustainability assessment: financial statement analysis can estimate a company's ability to survive and thrive in the long term. this includes valuing the ability to generate profits on an ongoing basis and investing in the growth of the company. 6. comparison with competitors: financial statement analysis can be used to compare a company's performance with its competitors in the same industry. this can reveal strengths, weaknesses, opportunities and threats in the market. 7. estimating value: financial statement analysis can be used to estimate the value of the company in the event of sale or acquisition, which is important for investors and companies wishing to expand or merge their business (edward), 2021, p. 21). fourth: financial ratios financial ratios are a set of ratios and metrics that are used to measure and analyze the relationships between components of financial statements, and provide a better understanding of the financial performance and financial condition of companies and institutions. financial ratios play an important role in providing a comprehensive picture of financial health and the ability to meet financial obligations (rizk, 2009, p. 209). american journal of business management, economics and banking volume 23 april 2024 p a g e | 119 www.americanjournal.org types of financial ratios: a. profitability ratios: • net profit to sales ratio: the net profit ratio is evaluated in relation to total sales, which helps in determining the profitability margin. • return on assets ratio: evaluates the efficiency of using assets to achieve profit. b. liquidity ratios: • current liquidity ratio: evaluates the company's ability to pay its short-term obligations through liquid assets. • quick ratio: it excludes securities from assets to assess the ability to pay off its obligations faster. c. debt ratios: • debt-to-equity ratio: an assessment of the extent to which a company is financed by debt compared to equity. • debt-to-assets ratio: assesses the extent to which assets are financed by debt (khalil, 1988, 95). d. return ratios: • return on investment ratio: an assessment of the company’s efficiency in achieving returns on its investments. • return on equity ratio: an evaluation of shareholders’ returns compared to the size of their equity. h. productivity ratios: • return to employee ratio: evaluating productivity based on revenue versus number of employees. the importance of using financial ratios: • providing an accurate understanding of the organization's financial position and its ability to bear financial risks. • providing information for making strategic decisions such as expanding the business or implementing new projects. • providing rules for comparing the company's performance with its competitors or with industry standards. drawing on this theoretical framework of financial ratios can help better understand and analyze the financial performance of organizations. (al-afandi, 2017, p. 177). fifth: analysis of time trends time trend analysis is the process of studying changes in financial data and financial indicators over time. this analysis is used to understand the pattern followed by financial performance over multiple years and to identify long-term trends and significant changes in performance (baker, 2005, pp. 8896). the importance of analyzing time trends: a. identifying long-term trends: time trend analysis helps determine the pattern followed by financial performance over time, which contributes to identifying long-term trends and guiding the organization's strategies. b. detecting important changes: analyzing time trends can reveal important changes in the company’s performance, whether they are an improvement or a decline, and this helps in identifying the reasons for these changes and taking the necessary measures. american journal of business management, economics and banking volume 23 april 2024 p a g e | 120 www.americanjournal.org c. providing a comprehensive view: analyzing time trends helps provide a comprehensive picture of financial performance and its development over time, enabling managers and shareholders to understand the company’s progress. d. decision support: by following trends over time, managers can make better strategic decisions based on a better understanding of evolving financial performance. steps to analyze time trends: a. data collection: collecting financial data for multiple time periods, such as consecutive years. b. data organization: organizing data into tables or graphs to enable comparative analysis. c. pattern monitoring: analyzing data to discover the general pattern of changes over time, whether increasing or decreasing d. decision support: by following trends over time, managers can make better strategic decisions based on a better understanding of evolving financial performance. steps to analyze time trends: a. data collection: collecting financial data for multiple time periods, such as consecutive years. b. data organization: organizing data into tables or graphs to enable comparative analysis. c. pattern monitoring: analyzing data to discover the general pattern of changes over time, whether increasing or decreasing. d. reason analysis: analysis of the possible reasons behind changes, such as changes in the market, company strategies, changes in the economic environment, and others. h. presenting results: presenting results through tables or graphs that show important trends and changes. and the. take action: based on the results, take necessary actions to improve performance or address any challenges. analyzing time trends enhances your understanding of how financial performance evolves over time and how the advantage is achieved (al-sabah and al-amri, 2019, 45). sixth: vertical analysis vertical trend analysis focuses on comparing an organization's financial data with data for other organizations in the same industry or with general industry averages. this analysis aims to determine the organization’s position within its market and measure its performance compared to competitors and the industry as a whole (al-birmani, 2020, p. 115). the importance of analyzing vertical trends: a. comparison with competitors: analyzing vertical trends helps in comparing an organization's performance with that of direct competitors and understanding the extent of its superiority or decline. b. accurate identification of strengths and weaknesses: this analysis helps identify areas in which the organization excels and areas that need improvement. c. adjusting competitive strategies: the results of vertical analysis can be used to develop strategies to achieve competitive advantage by relying on the rules used by successful competitors. d. identify opportunities and challenges: vertical analysis can identify opportunities that can be exploited and challenges that must be overcome in order to achieve superiority. american journal of business management, economics and banking volume 23 april 2024 p a g e | 121 www.americanjournal.org steps to analyze vertical trends: a. determine financial metrics: select appropriate financial metrics to compare performance, such as revenues, profitability, liquidity, debt, and others. b. data collection: collect enterprise data, competitor data, or industry averages for specific time periods. c. data organization: organize data into tables or graphs for easy comparison. d. data analysis: compare organization data with competitor data or industry averages and identify similarities and differences. h. extract results: extract comparison results and identify the financial rules that the organization excels at and those that need improvement. and the. interpreting the results: interpret the results in relation to the organization and its ability to compete and achieve competitive advantage. analyzing vertical trends enhances your ability to understand the organization’s position within the market and the extent of its ability to compete and excel (al-atrash, 2010, p. 63). seventh: analysis of assets, liabilities and return on investment analysis of assets, liabilities, and return on investment is an essential part of financial statement analysis that aims to understand how the organization uses and finances assets and how to achieve a return on investment from these assets (al-bayati, 2014, p. 195). the importance of analyzing assets, liabilities and return on investment: a. evaluating operational efficiency: analysis of assets, liabilities and return on investment helps estimate how assets are used and how they are financed from liabilities, and this reflects the operational efficiency of the organization. b. understanding financing structure: this analysis helps determine the extent to which an organization is financed with debt compared to equity and how assets are allocated. c. return on investment analysis: it helps in analyzing the organization’s efficiency in achieving a profitable return from various investments. d. determine financial viability: helps evaluate whether investments generate sufficient returns to justify the cost and risks associated with them. steps to analyze assets, liabilities and return on investment: a. define financial items: select the financial items related to assets, liabilities, and return on investment to be analyzed. b. data collection: collecting organization data from financial statements for different periods. c. data organization: organize data into tables or graphs to facilitate analysis and comparison. d. calculating ratios and indicators: according to financial ratios related to assets, liabilities, and return on investment, such as the debt-to-equity ratio and the return on investment ratio. h. analyze results: compare organization data over time and analyze important trends and changes. and the. drawing conclusions: draw your conclusions from the analysis regarding the efficiency of assets and liabilities, return on investment, and the extent to which the organization achieves its financial goals. analyzing assets, liabilities and return on investment provides you with a better understanding of how assets are used and financed and how return on investment is achieved, and this helps in making american journal of business management, economics and banking volume 23 april 2024 p a g e | 122 www.americanjournal.org informed decisions regarding financial management and financing strategies (bilal mustafa khalil, banking and finance management, 2011, p. 55). eighth: analysis of processes and operation operations and operations analysis focuses on studying how an organization manages its operations and how to achieve operating efficiency. this analysis helps in understanding operational and procedural matters that affect financial performance. importance of process and operational analysis: a. increased efficiency: process and operational analysis helps identify areas that can be improved to increase efficiency and reduce costs. b. improving the quality of products and services: process and operational analysis can improve the quality of products or services provided by identifying weak points and making improvements. c. improve planning and organization: planning and organization can be improved by understanding processes and improving the sequence of activities and tasks. d. reduce waste: opportunities can be discovered to reduce waste and increase the efficient use of resources. steps to analyze processes and operation: a. identify key processes and processes: identify the key processes and activities that impact the organization's performance. b. document processes: describe processes in detail, from beginning to end. c. analyze flows and activities: analyze the flow of activities and tasks and identify any delays or interruptions in the sequence. d. efficiency and cost analysis: analyze the efficiency of operations and verify the achievement of planned costs. h. process quality analysis: analyze the quality of products or services provided by the processes. and the. process improvement: build on analysis results to identify and implement potential improvements. g. monitor and measure results: after implementing improvements, monitor the results and evaluate whether they have resulted in effective improvements in performance. process and operation analysis contributes to improving the organization’s efficiency and increasing the quality of its products or services, which contributes to achieving competitive advantage and achieving better financial performance (al-abrash, 2018, pp. 63-67) ninth: comparative analysis comparative analysis focuses on comparing the financial performance and financial indicators of an organization with similar organizations in the same industry, industry averages, or other comparison standards. this analysis aims to determine the organization’s position within the market and understand performance compared to others (bel-eid, 2018, p. 25) the importance of comparative analysis: a. understanding the competitive situation: comparison analysis helps in understanding the extent to which an organization is superior or inferior compared to its competitors. american journal of business management, economics and banking volume 23 april 2024 p a g e | 123 www.americanjournal.org b. extracting lessons from the past: comparative results can be used to draw lessons from the experiences of successful and failed institutions. c. identify strengths and weaknesses: strengths and weaknesses can be identified by comparing performance with competitors. d. directing improvement strategies: helps identify areas that need improvement and areas that are already doing well. comparison analysis steps: a. identify comparators: identify similar organizations in the same industry, industry averages, or other benchmarks to compare. b. data collection: collecting the organization’s data and comparators’ data from the financial statements for the same periods. c. data organization: organize data into tables or graphs to facilitate comparison. d. data analysis: compare the organization's data with comparators' data and identify similarities and differences. h. difference analysis: analyze differences between the financial performance of the organization and comparables and identify potential reasons for these differences. and the. extracting results: extract the results of the comparison and determine whether the institution outperformed the comparators or fell behind. g. conclusions and recommendations: draw recommendations from the comparison results to improve the organization’s performance or continue its success. comparative analysis provides you with a comprehensive view of where you stand in the market and how you can achieve competitive advantage, and can be a powerful guide to making informed strategic decisions. the second section: the theoretical framework for competitive advantage first: the concept of competitive advantage a competitive advantage is the characteristic or element that makes a particular product or service stand out from competitors in the market and makes an organization able to achieve better performance or provide greater value to customers. competitive advantage can include several factors such as quality, cost, innovation, and customer service (al-shafi’i, 2014, pp. 88-100). second: the importance of competitive advantage: 1. achieving sustainable success: competitive advantage enables an organization to achieve success and survive in the market in the long term by offering something unique and valuable to customers. 2. increase market share: competitive advantage enables an organization to attract more customers and increase its market share at the expense of competitors. 3. increasing financial value: competitive advantage contributes to increasing the financial value of the organization by attracting investors and increasing revenues and profits. 4. attracting talent: competitive advantage can help attract talented employees and experts who contribute to achieving innovation and success (al-salami, 2019, p. 55). american journal of business management, economics and banking volume 23 april 2024 p a g e | 124 www.americanjournal.org third: competitive advantage factors: 1. quality: providing high quality and performance products or services can have a positive impact on competitive advantage. 2. cost: achieving low cost may allow an organization to offer products or services at competitive prices. 3. innovation and excellence: the organization’s ability to innovate and provide unique products or services that enhance competitive advantage. 4. customer service: providing distinguished customer service and meeting their needs effectively can contribute to competitive advantage. fourth: strategies to achieve competitive advantage 1. cost-plus strategy: achieving a low cost compared to competitors, allowing the provision of products or services at competitive prices. 2. differentiation strategy: focus on providing unique or high-quality products or services that distinguish the organization from competitors. 3. innovation strategy: invest in research and development to develop new products and services that innovatively meet customer needs. 4. focus strategy: focusing on a specific market or category of customers and providing products or services that uniquely meet their needs (al-yamani, 2013, pp. 61-65). fifth: stages of achieving competitive advantage: 1. market analysis: study customer needs and preferences and understand the market and competitors. 2. identify opportunities: identify unique opportunities that can contribute to achieving competitive advantage. 3. capacity development: developing the capabilities and resources necessary to achieve competitive advantage, such as technology and skills. 4. strategy implementation: effectively implement the chosen strategy and monitor its performance. 5. continuous innovation: continue to develop and innovate to maintain competitive advantage and overcome challenges. (al-yamani, 2013, pp. 73-75). the third section: measuring and analyzing the financial statements using financial ratios and their impact on indicators of competitive advantage for assyria national bank for the years (2010-2021) first: description of the standard model n this study, we will explain the effect of financial ratios on the number of bank branches (competitive advantage) and their relationship with each other, which can be described in the following table (1): table (3-1): variables of the standard model variable name code type rate of return on capital lira independent rate of return on assets rarc independent rate of return on equity raras independent number of bank branches rareq independent rate of return on capital nubb continued american journal of business management, economics and banking volume 23 april 2024 p a g e | 125 www.americanjournal.org the study relied on time series data consisting of (48) observations, which are (4) chapters for the period (2010-2021), as that data was obtained from the (iraqi securities commission), and as shown in the table below: the year liquidity ratio (current assets/total deposits) rate of return on capital rate of return on assets rate of return on equity number of bank branches 2010 2.39241252 0.133711668 0.063991422 0.11648862 4 2011 2.228923152 0.150019572 0.05910571 0.11826611 4 2012 3.499523964 0.131973567 0.073895371 0.116089418 5 2013 3.986714078 0.09136352 0.053920035 0.08308442 7 2014 3.736702369 0.03668782 0.02102461 0.034061757 7 2015 3.49990429 0.040984248 0.022676786 0.06020351 8 2016 26.45974871 0.058966304 0.038512817 0.058350013 9 2017 0.033857997 0.05399272 0.035869305 0.050720963 9 2018 0.01500247 0.01894 0.010128776 0.017640988 9 2019 0.019366465 0.024196 0.014244471 0.022652037 9 2020 0.025605449 0.059312 0.031285737 0.054203038 9 2021 0.024870917 0.030832 0.012563465 0.027383536 9 second: measuring and analyzing the impact of analyzing the financial statements using financial ratios and their impact on indicators of the competitive advantage of assyria national bank for the years (2010-2021) using the statistical program (9eviews). 1. stability: from table no. (2) below, we notice that the independent variable stabilized at the first difference, without a categorical point or general trend, and at the level of significance (1%). null hypothesis: d(lira) has a unit root exogenous: none lag length: 4 (automatic based on sic, maxlag=9) t-statistic prob.* augmented dickey-fuller test statistic -2.409874 0.0173 test critical values: 1% level -2.627238 5% level -1.949856 10% level -1.611469 *mackinnon (1996) one-sided p-values. augmented dickey-fuller test equation dependent variable: d(lira,2) method: least squares date: 09/28/23 time: 00:45 sample (adjusted): 2011q4 2021q1 included observations: 38 after adjustments american journal of business management, economics and banking volume 23 april 2024 p a g e | 126 www.americanjournal.org variable coefficient std. error t-statistic prob. d(lira(-1)) -0.498307 0.206777 -2.409874 0.0217 d(lira(-1),2) 0.249044 0.158149 1.574740 0.1249 d(lira(-2),2) 0.249152 0.158153 1.575382 0.1247 d(lira(-3),2) 0.249152 0.158153 1.575382 0.1247 d(lira(-4),2) -0.416870 0.158153 -2.635862 0.0127 r-squared 0.527058 mean dependent var -0.008364 adjusted r-squared 0.469731 s.d. dependent var 2.491703 s.e. of regression 1.814447 akaike info criterion 4.151518 sum squared resid 108.6432 schwarz criterion 4.366990 log likelihood -73.87884 hannan-quinn criter. 4.228181 durbin-watson stat 1.853399 from table no. (3) below, we notice that the dependent variable stabilized at the first difference, without a categorical point or general trend, and at the level of significance (1%). table (3) null hypothesis: d(nubb) has a unit root exogenous: none lag length: 8 (automatic based on sic, maxlag=9) t-statistic prob.* augmented dickey-fuller test statistic -2.348954 0.0202 test critical values: 1% level -2.634731 5% level -1.951000 10% level -1.610907 *mackinnon (1996) one-sided p-values. augmented dickey-fuller test equation dependent variable: d(nubb,2) method: least squares date: 09/28/23 time: 00:47 sample (adjusted): 2012q4 2021q1 included observations: 34 after adjustments variable coefficient std. error t-statistic prob. d(nubb(-1)) -0.148446 0.063197 -2.348954 0.0270 d(nubb(-1),2) 0.017128 0.121220 0.141301 0.8888 d(nubb(-2),2) 0.085278 0.102832 0.829295 0.4148 d(nubb(-3),2) 0.085278 0.102832 0.829295 0.4148 d(nubb(-4),2) -0.723233 0.102832 -7.033174 0.0000 d(nubb(-5),2) -0.011419 0.112130 -0.101837 0.9197 d(nubb(-6),2) 0.050535 0.092532 0.546136 0.5898 d(nubb(-7),2) 0.050535 0.092532 0.546136 0.5898 d(nubb(-8),2) -0.502657 0.092532 -5.432258 0.0000 american journal of business management, economics and banking volume 23 april 2024 p a g e | 127 www.americanjournal.org r-squared 0.768881 mean dependent var -0.014706 adjusted r-squared 0.694923 s.d. dependent var 0.105550 s.e. of regression 0.058299 akaike info criterion -2.624526 sum squared resid 0.084970 schwarz criterion -2.220490 log likelihood 53.61695 hannan-quinn criter. -2.486738 durbin-watson stat 2.159685 through table no. (4) below, we notice that the independent variable stabilized at the second difference, with a categorical presence and no general trend, and at the level of significance (1%). table (4) null hypothesis: d(raras,2) has a unit root exogenous: constant lag length: 7 (automatic based on sic, maxlag=9) t-statistic prob.* augmented dickey-fuller test statistic -10.04520 0.0000 test critical values: 1% level -3.639407 5% level -2.951125 10% level -2.614300 *mackinnon (1996) one-sided p-values. augmented dickey-fuller test equation dependent variable: d(raras,3) method: least squares date: 09/28/23 time: 00:48 sample (adjusted): 2012q4 2021q1 included observations: 34 after adjustments variable coefficient std. error t-statistic prob. d(raras(-1),2) -2.012350 0.200330 -10.04520 0.0000 d(raras(-1),3) 1.012270 0.187183 5.407920 0.0000 d(raras(-2),3) 1.013769 0.172780 5.867394 0.0000 d(raras(-3),3) 1.015268 0.157179 6.459323 0.0000 d(raras(-4),3) 0.927157 0.138085 6.714384 0.0000 d(raras(-5),3) 0.927015 0.118821 7.801797 0.0000 d(raras(-6),3) 0.925991 0.097071 9.539298 0.0000 d(raras(-7),3) 0.924968 0.068879 13.42881 0.0000 c 7.30e-05 0.000208 0.350334 0.7290 r-squared 0.939156 mean dependent var 3.90e-19 adjusted r-squared 0.919686 s.d. dependent var 0.004252 s.e. of regression 0.001205 akaike info criterion -10.38250 sum squared resid 3.63e-05 schwarz criterion -9.978464 log likelihood 185.5025 hannan-quinn criter. -10.24471 f-statistic 48.23569 durbin-watson stat 2.009714 prob(f-statistic) 0.000000 from table no. (5) below, we notice that the independent variable stabilized at the level, without any conclusiveness or general trend, and at the level of significance (1%). american journal of business management, economics and banking volume 23 april 2024 p a g e | 128 www.americanjournal.org table (5) null hypothesis: rarc has a unit root exogenous: none lag length: 1 (automatic based on sic, maxlag=9) t-statistic prob.* augmented dickey-fuller test statistic -2.265901 0.0243 test critical values: 1% level -2.621185 5% level -1.948886 10% level -1.611932 *mackinnon (1996) one-sided p-values. augmented dickey-fuller test equation dependent variable: d(rarc) method: least squares date: 09/28/23 time: 00:49 sample (adjusted): 2010q4 2021q1 included observations: 42 after adjustments variable coefficient std. error t-statistic prob. rarc(-1) -0.019738 0.008711 -2.265901 0.0289 d(rarc(-1)) 0.741262 0.094207 7.868416 0.0000 r-squared 0.640357 mean dependent var -0.002644 adjusted r-squared 0.631365 s.d. dependent var 0.006803 s.e. of regression 0.004131 akaike info criterion -8.094386 sum squared resid 0.000682 schwarz criterion -8.011640 log likelihood 171.9821 hannan-quinn criter. -8.064057 durbin-watson stat 1.880909 from table no. (6) below, we notice that the independent variable stabilized at the first difference, without a categorical point or general trend, and at the level of significance (1%). table (6) null hypothesis: d(rareq) has a unit root exogenous: none lag length: 0 (automatic based on sic, maxlag=9) t-statistic prob.* augmented dickey-fuller test statistic -2.288613 0.0230 test critical values: 1% level -2.621185 5% level -1.948886 10% level -1.611932 *mackinnon (1996) one-sided p-values. american journal of business management, economics and banking volume 23 april 2024 p a g e | 129 www.americanjournal.org augmented dickey-fuller test equation dependent variable: d(rareq,2) method: least squares date: 09/28/23 time: 00:51 sample (adjusted): 2010q4 2021q1 included observations: 42 after adjustments variable coefficient std. error t-statistic prob. d(rareq(-1)) -0.238864 0.104371 -2.288613 0.0273 r-squared 0.112035 mean dependent var -0.000170 adjusted r-squared 0.112035 s.d. dependent var 0.004600 s.e. of regression 0.004335 akaike info criterion -8.020887 sum squared resid 0.000770 schwarz criterion -7.979514 log likelihood 169.4386 hannan-quinn criter. -8.005722 durbin-watson stat 1.781087 2. determine the optimal number of slowdown periods: from table no. (7), we note that the optimal number of slowdown periods is two time periods based on the swartj (sc), akaik (aic), and hanan-quin (hq) criteria. table (7) var lag order selection criteria endogenous variables: lira nubb raras rarc rareq exogenous variables: c date: 09/28/23 time: 00:53 sample: 2010q1 2021q4 included observations: 41 lag logl lr fpe aic sc hq 0 227.7300 na 1.32e-11 -10.86488 -10.65590 -10.78878 1 528.2073 513.0101 1.94e-17 -24.30280 -23.04896 -23.84622 2 589.7831 90.11090* 3.45e-18* -26.08698* -23.78829* -25.24992* 3 609.6005 24.16760 5.16e-18 -25.83417 -22.49062 -24.61663 * indicates lag order selected by the criterion lr: sequential modified lr test statistic (each test at 5% level) fpe: final prediction error aic: akaike information criterion sc: schwarz information criterion hq: hannan-quinn information criterion 3. co-integration: from table no. (8), we notice the presence of (5) integral vectors in the impact test, and three integral vectors in the maximum value test, which indicates the existence of a long-term complementary relationship between the variables of the standard model. american journal of business management, economics and banking volume 23 april 2024 p a g e | 130 www.americanjournal.org table (8) date: 09/28/23 time: 00:55 sample (adjusted): 2011q1 2021q1 included observations: 41 after adjustments trend assumption: linear deterministic trend series: lira nubb raras rarc rareq lags interval (in first differences): 1 to 2 unrestricted cointegration rank test (trace) hypothesized trace 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.751556 132.8993 69.81889 0.0000 at most 1 * 0.553846 75.80530 47.85613 0.0000 at most 2 * 0.432531 42.71453 29.79707 0.0010 at most 3 * 0.273467 19.48517 15.49471 0.0118 at most 4 * 0.144250 6.386873 3.841466 0.0115 trace test indicates 5 cointegrating eqn(s) at the 0.05 level * denotes rejection of the hypothesis at the 0.05 level **mackinnon-haug-michelis (1999) p-values unrestricted cointegration rank test (maximum eigenvalue) hypothesized max-eigen 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.751556 57.09398 33.87687 0.0000 at most 1 * 0.553846 33.09077 27.58434 0.0088 at most 2 * 0.432531 23.22936 21.13162 0.0250 at most 3 0.273467 13.09830 14.26460 0.0758 at most 4 * 0.144250 6.386873 3.841466 0.0115 5. todayamoto causality model since the variables of the standard model stabilized at the first difference, others at the second difference, and others at the level, and because there is a long-term complementary relationship between the variables of the standard model, all of these things led us to use a causal model (todayamoto) in order to measure and analyze the relationship between the variables of the standard model. through table no. (9), we note that the independent variables (lira raras, rarc rareq), which represent (liquidity ratio, rate of return on assets, rate of return on capital, rate of return on equity), which are the financial ratios chosen in the financial analysis, are it has no effect on the dependent variable (nubb), which represents the number of bank branches, which is one of the indicators of the competitive advantage of assyria national bank during the period (2010-2021), because the values of (prob) appeared at values (0.66, 0.39, .017, 0.52), which are larger. from (0.05), meaning it is not significant. american journal of business management, economics and banking volume 23 april 2024 p a g e | 131 www.americanjournal.org the reason why the financial ratios do not affect the number of branches of the aforementioned bank is due to the fact that the banking sector in iraq is a backward sector and does not use modern banking management systems to achieve competitive advantage, and therefore this matter was reflected in the fact that the bank’s branches increased during the period from (2010-2021). ) from (4-9) only, while the bank has achieved continuous profits during the above years, meaning that the bank has branches in (9) iraqi governorates only and not in all the governorates of the country, which amount to (18) governorates, and therefore the bank of assyria did not use the analysis financial statements using important financial ratios in making important decisions in achieving competitive advantage among private banks, which is increasing the number of banking services provided by them to members of society by increasing the number of branches. table no. (9) var granger causality/block exogeneity wald tests date: 09/28/23 time: 01:19 sample: 2010q1 2021q4 included observations: 42 dependent variable: nubb excluded chi-sq df prob. lira 0.809570 2 0.6671 raras 1.854446 2 0.3957 rarc 3.507589 2 0.1731 rareq 1.290617 2 0.5245 all 5.068655 8 0.7502 conclusions and recommendations: first: conclusions 1. ashur national bank does not rely on analyzing the financial statements using the financial ratios method in making its decisions to achieve competitive advantage. 2. the reason why financial ratios do not affect the number of branches of the aforementioned bank is due to the fact that the banking sector in iraq is a backward sector and does not use modern banking management systems to achieve competitive advantage. 3. the laws and regulations governing banking in iraq are laws that do not support the private sector in achieving growth in the banking system, and this is reflected in the lack of development of the banking system in iraq, and thus the weakness of the banking sector in contributing to the gross domestic product in iraq. 4. the management of most banks in iraq focuses on the issue of managing profits and their growth in order to increase the shares of profits distributed to shareholders, and thus this is reflected in the lack of desire of the managements of most private banks to develop aspects of growth and expansion and achieve competitive aspects. american journal of business management, economics and banking volume 23 april 2024 p a g e | 132 www.americanjournal.org 5. through the above, the hypothesis of the study was denied, which states (there is a positive relationship between analyzing financial statements and achieving a competitive advantage for private commercial banks, including assyria national bank). second: recommendations 1. the necessity for assyria national bank to adopt the method of analyzing financial statements, using more than one method and more than one standard in making its decisions related to achieving competitive advantage, not only by expanding the bank’s branches, but also by increasing and improving the quality of service. 2. the necessity of the aforementioned bank’s values of dealing by opening the horizons of dealing with a group of international banks in order to develop its administrative systems and staff and provide them with the latest findings of international banking management systems, which will subsequently be reflected in the quantity and quality of banking service provided to customers, and thus achieve a competitive advantage among banks. the other in iraq. 3. the need for the central bank of iraq to update its oversight policies on the banking sector and adopt a mechanism for analyzing financial statements and financial ratios in order to activate competition policies among private banks operating in iraq, and this is what ensures an increase in banking services provided in iraq and an improvement in their quality as well. 4. the need for the monetary authority to update the laws governing banking work, in line with the trends that support its growth by supporting private banks. this is reflected in the increase in the volume of banking work and its contribution to the gross domestic product in iraq. 5. the necessity of developing the administrative visions of the members of the boards of directors of private banks, by directing a large portion of the profits achieved in those banks to support development programs that aim to attract clients and customers, increase the number of branches of private banks, and improve the type and quality of banking services, and thus ensure the achievement of competitive advantages with other banks. references 1. d. ali kanaan, money, banking and monetary policy, damascus university press, syriadamascus, 2013. 2. d. reda saheb abu ahmed and dr. faiq mishal qaddouri, banking department, dar al-sadiq foundation, iraq babylon, 2019. 3. d. mirand zaghloul rizk, money and banks, benha university press, egypt/benha, 2009. 4. d. sami khalil, money and banks, dar al-kadhma for printing, publishing and distribution, kuwait, 1988. 5. d. muhammad ahmad al-afandi, monetary and banking economics, academic book center, jordan-amman, 2017. 6. d. naglaa muhammad bakr, the economics of money and banking, thebes academy, lebanon, 2005. 7. d. saud jayed mashkoor al ameri and dr. abdel sattar mustafa al-sabah, basics of modern financial management, ghaida publishing and distribution house, amman jordan, 2019. 8. khader abbas al-birmani, modern banking management, dar al-shams for publishing and distribution, lebanon sidon, 2020). american journal of business management, economics and banking volume 23 april 2024 p a g e | 133 www.americanjournal.org 9. d. abdel-wadud muhammad al-atrash, banking performance analysis, al-khabir academic consulting, publishing and distribution, tunisia, 2010. 10. d. sattar jamal sabri al-bayati, banking efficiency management, dar al-yazurdi printing and publishing press, iraq baghdad, 2014. 11. bilal mustafa khalil, banking and finance department, dar al-furat university services, iraq mosul, 2011. 12. d. sadiq muhammad salman al-abrash, fundamentals of financial analysis of banks, dar alrelaqa press, iraq baghdad, 2018. 13. jumaa hallan baleid, measuring and analyzing the impact of bank liquidity indicators on the credit capacity of a sample of algerian banks (unpublished doctoral thesis), university of algiers, faculty of business economics, 2016. 14. muntadhar abbas muhammad al-shafi’i, financial management and financial analysis, baghdad press, iraq baghdad, 2018. 15. salam abboud mustafa al-salami, modern management and its impact on the banking environment, golden phoenix press, lebanon, 2015. 16. abdullah amir al-yamani, modern strategies for management science, jeddah press, saudi arabia jeddah, 2013. 17. iraqi securities commission, annual reports of assyria national bank for the years (2010-2021). 18. john frederick, modern trends in financial management, european publishing house, london, 2020. 19. arthur mark dosen, banking asset management, banking development organization, paris, 2021, 20. joan hibbard toni, study and analysis of the concept of financial statement analysis on earnings management for a sample of private banks in switzerland, the swiss journal of administrative sciences, 2019, p12. 21. david edward, principles of financial analysis, lloyds institution for economic and banking studies, italy venice, 2021. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 95 www.americanjournal.org the mediating role of outsourcing internal auditing in the relationship between electronic auditing and auditing strategies-a field study in public companies in iraq assistant teacher: ahmed abed ahmed student at the higher institute of accounting and institutional management manouba university mohamedmaser02@gmail.com 07703789241 dr. hanen moalla higher institute of accounting and institutional management manouba university hanen_moalla@yahoo.fr 0021698271844 a b s t r a c t k e y w o r d s through this research, we seek to demonstrate the role of the relationship between electronic auditing and outsourcing internal auditing in supporting auditing strategies for the opinions of a sample of companies operating in iraq, and to identify the nature of the correlation and influence relationships between the research variables (electronic auditing, outsourcing internal auditing, auditing strategies) in companies under review. studying. the researcher formulated a set of questions that represented the problem of the research, and for achieving the goal of the research, a hypothetical scheme was adopted through which its hypotheses were defined. the study population consists of some iraqi companies in baghdad governorate, while the study sample was limited to internal auditors, accountants, and implementation managers in iraqi companies, as the number of these companies reached (21) companies, and (3) were excluded as a result of the invalidity of their answers for analysis. so that the number of companies in the study sample is limited to (18) companies only, (210) forms were distributed, as if the recovered and valid ones for analysis were (202) forms only, i.e. with a recovery rate of only 96%, and then the researcher analyzed them using the appropriate statistical program. the study came out with a set of results, the most important of which is the impact of electronic auditing and outsourcing of internal auditing in supporting auditing strategies in the companies under study. in order to prepare the report and guide the development of the audit plan, the electronic audit, outsourcing internal audit, audit strategies. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 96 www.americanjournal.org disclosure of the comprehensive audit strategy must contain sufficient details to guide them when developing the internal audit plan or outsourcing, so that the audit strategy is comprehensive. introduction the world is witnessing a huge development in information technology, and the fundamental changes brought about by this technology in the accounting information environment, as this technology offers enormous capabilities and important advantages, including the ability to store accounting information and the ability to run accounting data with great speed and accuracy, as well as the development in the field of internal audit operations. (khadash et al, 2014). as it is possible through the process of auditing the data of all departments, departments and branches of economic units, and through outsourcing the audit, the economic units are audited by external parties such as customers, suppliers, government and other parties, as it requires the auditor to have skills in using the electronic computer, maintaining and updating files, making backups and others. the work of the accountant is limited to analyzing, recording, tabulating and classifying the economic operations in the project to show the outcome of the business and the financial position, but it has evolved to deal with data analysis and administrative decision-making (byamukama, 2014). it also required the auditor to understand and take into account the advantages of the environment of electronic accounting information systems because of its impact on the design of the accounting system and internal controls and to choose the internal controls that he intends to rely on and also to understand the nature, timing and extent of his procedures, and from here the electronic accounting information systems imposed a new reality on the auditing profession as a result of the adoption of activities and transactions the economic unit and carrying out the main tasks on the electronic computer, which led to the need for the auditing profession and the auditors to keep pace with the development of electronic auditing (hadden et al, 2013). both (abdullah & fares, 2016) and (lynn et al, 2015) dealt with electronic auditing as an independent variable, while the study (djanegara, 2021 and gurama, 2018) dealt with auditing strategies as a dependent variable, either in the study of (khasawneh, 2017) and (ahmad, 2014) the relationship between electronic auditing and auditing strategies showed that there is an absence of how electronic auditing affects auditing strategies, so outsourcing internal auditing was used as a mediating variable (saeed et al, 2019) and (karin & kgobalale, 2010) . 1.1 study problem the use of electronic auditing at the stage of planning the flour process leads to an improvement in the quality of the auditing service. electronic flour is also used in the implementation of the association’s tests and basic operations tests, in addition to understanding the internal environment of the association. the results showed that the use of electronic auditing in the implementation of analytical auditing procedures and detailed tests of balances. it leads to improving the quality of flour service, and the use of electronic auditing at the stage of completing flour and issuing the auditor's report leads to improving the quality of flour service. among the contemporary methods and concepts is the outsourcing of internal auditing, which focuses on assisting internal auditors in raising work efficiency by assigning the work that was previously performed within the company to a company or an external independent entity to perform it, in order to keep pace with the development of auditing procedures and processes from traditional auditing methods to modern methods. and qualifying the internal cadres, as well as american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 97 www.americanjournal.org benefiting from the savings that are achieved as a result of adopting this method. as the practice of (outsourcing) has become an important practice followed by companies to benefit from external technological and professional expertise, as large organizations seek to reduce costs. in addition to providing information that helps senior management in making appropriate decisions that focus on achieving the goal for which companies decided to outsource their activities to others. therefore, the integration of the relationship between outsourcing and electronic management can support audit strategies. through the foregoing, the problem of the study crystallizes in identifying the impact of electronic auditing in supporting auditing strategies through outsourcing internal auditing. therefore, asking the following questions can contribute to clarifying the contents of the study problem: • is there a statistically significant effect between electronic auditing and its dimensions and auditing strategies through outsourcing internal auditing in the companies under study? 1.2 the importance of the study the current study gains its importance through: 1) starting from the importance and role of the variables under study, whose importance is derived from the problem it addresses, as the study focused on important variables represented (electronic auditing, outsourcing internal auditing and auditing strategies), as important variables in the accounting literature. 2) it favors the success of the offices in the midst of a dynamic environmental vortex that changes in size and diversity, with the aim of generating new interpretations, which leads to the correct path to reveal the reality of the phenomena and the underlying relationships between them. 3) providing the maximum amount of strength and providing what is necessary for the survival of industrial companies by accounting mechanisms that are employed in the face of various changes and developments. 4) the study sample companies need such studies, as they provide them with information about capabilities that can be employed in the service of exploiting their energies more effectively and efficiently. 5) it could be a pioneering attempt for members of senior management in industrial companies to make a decision that is compatible with the nature of the challenges they face in the iraqi environment in terms of adaptation and speed. 1.3 study objectives the main objective of the study is to study the impact of the relationship between electronic auditing and outsourcing internal auditing on supporting auditing strategies. thus, these research premises resulted in a set of goals, as follows: 1) studying the nature of the effect of electronic auditing on auditing strategies in terms of their dimensions at the aggregate and individual levels in the research sample companies. 2) to identify the extent of the impact of internal audit outsourcing on audit strategies in terms of their dimensions at the aggregate and individual levels in the research sample companies. 3) analyze the relationship of the effect of electronic auditing on outsourcing internal auditing in terms of their dimensions at the aggregate and individual levels in the research sample companies. 4) studying the impact of outsourcing internal auditing and its dimensions on the relationship between electronic auditing and cross-audit strategies in the research sample companies. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 98 www.americanjournal.org 1.4 study methodology and tools this study adopted the field study approach, which specializes in conducting field interviews with officials and workers in the companies under study, with the aim of comprehensive identification and briefing on all aspects of the problem, analyzing it, and then indicating its dimensions, variables, and relationships between them, without being satisfied with knowledge or an apparent description of it. in our study, the relationship between electronic auditing was studied. outsourcing internal audit in support of audit strategies. the study tool the study relied mainly on the questionnaire to collect primary data related to the variables of the study in preparation for analyzing it statistically to test the hypotheses of the study, as well as conducting interviews with officials and workers in the industrial companies under study for the purpose of crystallizing the problem of the study, and clarifying the paragraphs of the questionnaire in case of need. distribute the questionnaires manually during the field visits. 1.5 limitations of the study the limits of the current study include four limits, which are as follows: 1) objective limits: it is represented by three variables, which are (electronic auditing, outsourcing internal auditing, and auditing strategies). 2) spatial limits: it is related to the field aspect of the study to test the hypotheses of the study and answer the research questions raised. a group of companies operating in iraq were selected in baghdad governorate. 3) human limits: the limits of the human study included a sample of workers in industrial companies operating in iraq under study and included (accountants and auditors). 2. theoretical review 2.1 the concept of electronic audit the shift from the manual system to the electronic auditing system has become an indispensable necessity for the advancement of the auditing process and its entry into the era of technology. therefore, the first use of the electronic accounting system was in 1954, when at that time the devices used in the accounting work were the main computer devices, and at that time there were few individuals they have the skill and ability to use the computer and during the period from 1954 to 1960 the auditing profession was still dependent on the computer auditing method (khadash et al, 2014). the change in auditing methods began in the mid-sixties of the last century, coinciding with the introduction of new machines that are small in size and less costly. the method of data storage, retrieval, processing and control over it. in 1968, the american institute of certified public accountants developed data auditing and electronic processing. as a result, an association was formed for this task, and they called it the electronic data processing auditors association. 1977 the first edition of the objectives of information audit control, now known as (cobit), was issued. the objectives of information control and related technology are a set of special objectives for information technology control that are generally accepted by information technology auditors. in 1994, the association changed its name and turned into the association for control and audit of information systems. (bible et al, 2015). it has become the dominant feature of many modern organizations using technology in conducting their business and processing their data, as it helps in building successful institutions, and helps them build american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 99 www.americanjournal.org distinguished relationships with their customers, thus increasing their market share, and it also helps in the decision-making process, improving productivity, and encouraging global competition (alter, 1999) these developments in information technology put the profession the auditing profession in front of a major challenge to develop its tools and methods to continue providing its services with high quality, so what is known as electronic auditing, or computer auditing, appeared. this technology will help the profession, he said. (wali et al, 2021) in overcoming some aspects of human shortcomings if appropriate professional judgment is exercised. not only that, but also this technology put the security and safety of these organizations at stake; this required them to put in place several security measures that accompanied the use of this technology in order to protect their valuable information (bierstaker et al, 2011). having careful security and oversight of information resources relating to the company should be a priority for the top management. although the objectives of control remained similar in light of the use of information technology, the methods of control and security have changed fundamentally in light of developments in electronic commerce and information technology (romney & steinbart, 2006). at the outset, it must be taken into account that the objectives of the systems and the objectives of auditing are the same, and are not affected by the method of data operation, whether it is manual or automated. likewise, the scope of the audit does not change under the computerized information system (thneibat, 2006). with regard to the use of information technology in the audit process, which is called audit automation or auditing-e, it was less developed, but the interest in it increased during the past two decades. the latest controversy surrounding the nature of computerized systems auditing (braun & davis, 2013). electronic auditing means, “the process of applying any type of system using information technology to assist the auditor in planning, controlling, and documenting audit work” (shaikh, 2020). therefore, the electronic auditing pillar, in addition to the aforementioned auditing pillars, is the use of information technology in the auditing process to assist the auditor through the different audit stages of planning, control and documentation (boynton et al, 2016). there are three different methods for the extent of using information technology in the process of auditing accounts, the simplest of which is computer auditing, and the most in-depth and focused one is computer-based auditing, as well as computer-based auditing. the three approaches can be discussed as follows: (al-thunaibat, 2006). these methods are related to multiple factors such as the degree of automation of the electronic system and the extent to which the organization maintains documents and records, or in other words, the quality of the audit trail, and these methods are: (turner & weickgenannt, 2009) 1. auditing around the computer when the external auditor only takes into consideration the control that is not related to the electronic operation of data to estimate the risk of control, it will be known that it is called computer auditing. of account balances on the same approach that is implemented under manual systems (sekaran et al, 2010). 2. auditing through the computer this method is summarized in the external auditor examining and testing the data operation process inside the computer, as well as ensuring the validity of the inputs and outputs. the auditor here depends on the extent of compliance with the specific program (approved for data operation), which requires the auditor to have an appropriate amount of knowledge of the computer and electronic data operating systems, as well as the design and uses of programs. according to this method, there are several american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 100 www.americanjournal.org methods involved in using the computer to carry out examination and validation operations operations and balances (whitington & fisbach, 2012). these methods agree on the assumption on which they are built, which is that if the data operations are done accurately, this means that there is a high probability that the accounting records are correct and therefore the financial statements are correct. this method is suitable for auditing advanced systems, in which the degree of reliance on printed copies of outputs, which requires the auditor to carry out his task of verifying the validity of operations and balances through the computer and not around the computer (romney & dan, 2012). 3. auditing with the computer in this entry, the auditor uses some auxiliary programs, some of which require computer skills and experience. these methods are the parallel simulation approach. in this method, the auditor processes samples of the company's actual data using programs similar to those used by the client, and then compares its results with the client's results, but must be careful in choosing samples that are representative of the company's data. test data: this method aims to ensure that the client programs are run properly, so it prepares dummy data and then enters it into the client's system to ensure that it is properly processed. audit programs: they are programs aimed at assisting the auditor in his work, and they are divided into: special audit programs: they are used to carry out some audit tasks in accordance with the client’s system, and they are prepared with the help of experts in this field, or general audit programs: they are not specific to an application or client. however, it is generally intended to assist the auditor and may be used in many applications and with many clients (arens et al, 2012). 2.2 audit outsourcing the concept of outsourcing, known to some as outsourcing, is one of the modern scientific accounting concepts, which is done through another specialized intermediary who has the scientific capabilities and technical expertise that enables him to perform his work efficiently and with high quality. outsourcing is the process of outsourcing some of the activities previously carried out by a company (kavcic, 2014:20). he also defined it (fatima, 2015: 13) as when an industrial or commercial company outsources a job or part of it that was previously performed internally to an external resource. there is a consensus among researchers about the concept of outsourcing, which is contracting with an external party to provide services that can enhance performance within the company (byamukama, 2014:24). outsourcing can be defined as: assigning work that was previously performed within the company to an external facility to perform it. there is a growing trend towards outsourcing internal audit activities, and a number of business establishments have outsourced internal audit activities (abdel-fattah, 2001: 170), and a study (hawkins et al, 2014:232) indicates that the value of external contracts is internal activities doubled between (2001-2008) to reach (300) billion dollars, and the study (barac & motiubats, 2010: 975) indicated that the percentage of outsourcing internal audit activities within the united kingdom amounted to (87.7%) in companies, (48.8%) ) for private companies. the institute of internal auditors (iia) has redefined internal auditing as an independent, objective assurance and advisory activity, designed to add value to the company, improve its operations, and assist in achieving its objectives in a systematic and structured manner by evaluating and improving the effectiveness of risk management, control, and governance (iia) processes. 2014). this definition is the main driver for outsourcing internal audit activities to become a general practice for many business establishments, for reasons that the definition did not specify the party responsible for performing internal audit activities compared to the previous definitions, as the previous definitions american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 101 www.americanjournal.org indicate that internal audit is: an independent evaluation activity that is carried out from within the company, it aims to audit the financial accounting operations and other operations as a basis for providing preventive and management-building services. the importance of achieving the element of independence and objectivity in the party entrusted with providing internal audit activities, which may be accompanied by doubt if it is submitted from within the company. the expansion of the scope and objectives of the internal audit process to include the provision of consulting services to management aimed at improving the company’s operations, the effectiveness of risk management and governance, which requires competencies and expertise that may not be available in the case of providing internal audit from within the company (seetharaman et al, 2020). it is clear from the foregoing that the profession of outsourcing internal auditing is witnessing a great development, and this development is due to the fact that the control tools within business organizations have become significantly different from what was the case in traditional organizations in most periods of the twentieth century, as business organizations today depend on information, and they have become there is a lot of knowledge as a result of entering into highly complex and specialized operations at the international level, and accordingly the company’s objective and function have changed, and the organizations’ need for oversight has changed. activity in the company (sian & roberts, 2009). therefore, efforts should be directed to ensure that information is clear and reflects the real situation of companies or banks and to provide information to decision makers in a timely manner. undoubtedly, the internal audit department bears many responsibilities and burdens towards decision makers, given that its responsibilities lie in achieving the objectives of internal control, which it includes control of efficiency and effectiveness of operations, control of financial reports, and control of compliance (jayabalan & dorasamy, 2009). according to the institute of internal auditors (seerharaman, 2008), internal auditing is an independent and objective assurance and consulting activity designed to add value and improve the operations of the organization. (saravanan, 2009) described outsourcing as a service provided or surrendered to external parties. (abdolmohammadi, 2013) defined outsourcing as internal auditing. an approach in which outsiders regardless of the organization perform tasks will provide the benefits of cost advantage, effectiveness and efficiency of operations, and professional gains. internal audit outsourcing is an activity in which firms hire or appoint independent public accounting firms and other professionals to perform work not performed by internal auditors. traditionally. according to (barac & motubatse, 2010), the study stated that internal auditing helps improve the organization by enhancing the effectiveness and quality of auditing, which will eventually help management to identify problems and thus achieve the goals of the designated organization. it was also mentioned (brandon, 2010) that risks accounting can be diminished when the internal audit function is outsourced to external third parties and will be able to reduce the risk of fraudulent financial reporting. by having internal audit within the organizations it will have a greater advantage rather than outsourcing it entirely to third parties. 2.3 audit strategies an audit strategy generally means a combination of the audit approach to be used, the management and allocation of resources, the timing of the audit, and the manner in which the audit engagement is managed, for example the auditor uses a risk-based audit approach or a top-down approach to conduct the audit engagement (arens et al. , 2010). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 102 www.americanjournal.org the audit plan states the detailed steps that must be followed in conducting the audit, and the plan includes risk assessment procedures, in addition to additional procedures that must be followed based on the result of the risk assessment. the audit plan is more detailed than the strategy document, as the plan stipulates the nature, timing, and extent of procedures specific audits to be performed (boynton et al, 2011). (bell et al, 2007) showed that audit planning is a vital area of the audit process that is mainly conducted at the beginning of the audit process to ensure that appropriate attention is devoted to important areas, potential problems are identified immediately, work is completed quickly, and work is coordinated properly. the auditor's ultimate objective in an audit is to reduce audit risk to an appropriately low level to support an opinion on whether the financial statements are fairly presented in all material respects. evidence, materiality, and components of audit risk, the auditor may choose from alternative primary audit strategies in planning the audit of individual assertions or groups of assertions (chang et al, 2013). based on the foregoing, the audit strategy can be defined as a planned methodology that includes how to choose the means and methods that the auditor must follow to carry out the audit task efficiently and effectively, and one or more strategies can be used for a specific account or group of accounts within the specific audit tasks, and the success of the audit process depends on the degree the first is the degree of cooperation among the members of the audit team, especially if we know that the services assigned to the auditor are renewable and increasing in quantity and quality, given that auditing is a profession and a service provided by the auditor to his clients and society, and given that the needs of this society are renewable and increasing due to the natural development and dynamism of society. the audit strategy tests and evaluates the operations of the economic units affected by the strategic management process, and this audit can be comprehensive for all aspects of the strategic management process, or it can focus on one part of the process. (ahmad, 2015) defines the audit strategy as a planned approach that includes how to choose the methods that must be to be followed by the auditor to carry out the audit task efficiently, while (ramamoorti, 2003) on the other hand sees that it is part of the supreme financial control, which is a new methodology for assessing the development prospects of the state and is applied with the aim of making the optimal decision regarding the use and use of state resources, and this type of audit allows the parties to financial control supreme council to express its views on the efficiency of achieving the approved goals and objectives. according to (erjckson, 2010) that developing an audit strategy for any audit engagement is mandatory under auditing standards, several factors contribute to the importance of an audit strategy in an audit, and some of these are as follows: 1) determine the scope of participation in the audit: the audit strategy plays an important role in determining the scope of the audit. without an appropriate audit strategy, the auditors will not understand the extent of the work they should do. similarly, scoping can help auditors in making decisions related to in resource management; in general, establishing the audit engagement scope is one of the key roles of the audit strategy. 2) developing the right audit approach: the audit approach refers to the strategy that auditors use to conduct an audit engagement. this approach varies according to the client and the type of engagement. through the audit strategy, auditors can determine the appropriate audit approach to use. it can also help in ensuring that the audit approach is effective and efficient in completing the engagement (yati, 2016). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 103 www.americanjournal.org 3) help in identifying potential problems: during some engagements, the auditors may encounter problems, and through the audit strategy, these potential problems are identified and resolved in a timely manner, and in the absence of this strategy, the auditors will find it difficult to solve the problems, moreover it can these problems affect the timing of the audit, which may increase costs, as indicated (karima & marwa, 30:2022). 4) risk reduction: an audit strategy can also help auditors reduce their risks, and it can allow them to allocate appropriate time and attention to high-risk areas, moreover it can help them identify those areas to create awareness of those risks, in general it can help in making the audit process efficient and effective, which reduces audit risks in general (simangunsong, 2020). 2.4 the role of audit outsourcing in the relationship between electronic audit and audit strategies technology contributes to building institutions, customer service, and competition in the labor market. information technology helps in making decisions and improving the productivity of business organizations. information technology is one of the most important methods used in business establishments to provide services and produce products. it has been used to process data and economic events. moreover, the use of information technology has affected financial and accounting systems as well as internal controls in business establishments. as a result, information technology has entered the field of auditing and the so-called electronic audit has emerged (boynton et al, 2016). the electronic audit is represented in carrying out the audit process using information technology, and despite the change in the environment, the objectives of the electronic audit remain the same as those of the manual audit. used by auditors has changed compared to what it used to be (al-jabari, 2014). electronic financial management allows the accounting office and the auditor to have flexible access to the same data and reports. the information flow improves between the accounting office and the auditor, and the auditor's procedures become more efficient with automated processes that reduce the number of errors and misdemeanors compared to the manual operating model (cerullo et al, 2013). the development in business intelligence and the use of computers has led to increased interest in using modern technologies in the audit process, as this leads to overcoming some aspects of human shortcomings when exercising professional judgment, and this is reflected in improving the efficiency and effectiveness of the audit process, as the new audit methodologies adopt the concept of risk, which it includes a strategic dimension with regard to the ability of the economic unit to achieve its objectives, which requires auditors to rely on advanced technology that can identify factors that prevent the unit from achieving its objectives (shihata, 2010). and (al-qudah et al, 2011) indicated that the use of information technology in various aspects of life can be used to improve many aspects at the individual level, at the community level, and in various business fields, including the field of auditing. and in the same context. the audit strategy is seen as this type of audit that deals with an economic unit from a comprehensive perspective while providing management with a comprehensive and comprehensive report on its strategic position in relation to various aspects within the framework of decision-making processes (arens & james, 2000). the audit strategy also expresses the input the general plan for planning audit tasks as well as drawing up a strategy based on internal control or key tests in collecting data and evidence related to the audit process, and (institute, 2004) adds that the audit strategy is the last step in strategic management, and while conducting audits attention should focus on following up on internal and external factors evaluating actual performance and taking corrective action. audit strategy is one american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 104 www.americanjournal.org of the vital processes because future success depends on accuracy in following up and continually evaluating today's actions. on the other hand, (tavasti, 2012: 4-5) defines the audit strategy as one of the tools related to strategic choices at the internal level and the environment at the external level. the strength and weakness that affect the company, especially the reasons for the company's failure, the inability to achieve profitability as expected, and the search for new areas and dimensions that may be the reason for adding real value. the audit strategy is also defined by (coram et al, 2008: 48) as the approach used by the auditor in planning the audit process to collect and evaluate evidence, and he adds that it is a system to ensure that the company achieves its goals by drawing levels of the actual performance targeted and then evaluating and comparing the actual performance. with benchmarks to determine the achievement of strategic performance objectives. for (arena & azzone, 2009: 43), the audit strategy is the approach used by the auditor to plan the audit process to collect and evaluate evidence, and he sees the audit strategy as an independent evaluation of development prospects and is implemented based on information expectations to reflect the auditor's opinion about the possibility of achieving goals. auditing is important in all the company's activities through marketing auditing. the aim of auditing the marketing process in the company is to determine the company's current marketing goals, strategies, policies and programs and their consistency with the company's mission, objectives, strategies and policies. what is the level of marketing performance of the company as well as the company's position in the local and international markets and the extent of the advantage the competitiveness achieved by current marketing (muhammad & ali, 2020). finance audit finance audit is one of the main elements that help the company to ensure its financial independence and maintain the balance of its work. the auditor must consider the company's current financial objectives, strategies, policies and programs and their clarity and consistency with the company's internal and external environment. the degree of the company’s success in conducting the financial analysis and the trends that this analysis shows, in addition to the company’s financial trends in relation to its past and present performance, as well as the impact on its future performance, the current financial position of the company, and ensuring its support for the 3. theories and hypotheses of the study 3.1 theories of the study 1. agency theory: this theory considers that the administration is an agent for others in the management of economic resources, where the administration tries to make the best use of these resources (low interest on loans, high share prices, low salaries and wages), and in order for the financial data to be well exploited, these data must be characterized therefore, a person who has a good reputation should be assigned to separate management from external parties to carry out the audit process and express his neutral technical opinion with the honesty and fairness of the financial statements. agency theory: a study method based on defining the relationship between the business broker and the client. this theory helps to know the best private incentives in individuals, which appear as a result of the success of commercial deals. it also contributes to reducing expenses that may appear due to the occurrence of disputes between brokers and clients. . agency theory is defined as a hypothesis that contributes to explaining the relationships between managers and agents in the business environment. this theory seeks to solve problems that may affect business objectives or lead to increased levels of american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 105 www.americanjournal.org risk. an example of agency theory in the work environment is the relationship between shareholders in the business environment. capital and corporate executives. another definition of the agency theory is a contract whereby an individual or group of individuals appoints or assigns other persons to carry out a work on their behalf. the agency theory is concerned with following up the nature of apparent differences as a result of the desires or private goals of the agent and the principal, and these differences may occur due to the principal’s lack of knowledge of the actions or decisions issued by the agent, such as when the company’s executive director considers it necessary to participate in commercial business within a variety of markets through increasing production dependent on raising production costs; in order to contribute to obtaining higher profits in the future, while the shareholders desire the growth of the current capital instead of paying additional production costs (al-jubouri, 2002). 2. the theory of granting credibility: this theory reflects the basic task of the audit process, as the auditor increases the credibility of the financial data, which is used by the administration (the agent) to increase the loyalty of the owners of capital, and this theory is unable to explain the other tasks that the user of the financial statements expects the auditor to take into account. screening process (al-fadl, 2007). 3.2 hypotheses of the study joint outsourcing or outsourcing of internal audit work can reduce costs, free up capital, and enhance a company's ability to focus on achieving its goals. it can also provide the ability to tap into specific skill sets, industry knowledge, and global resources as needed. with organizations pushing to do more with fewer resources, the internal audit function has become a prime candidate for audit strategic resources, and this can include outsourcing the entire function or just certain critical elements like many other functions. audit during the specified period, and the auditor divides the work between the audit team according to the nature of the operations through an executive program that reflects the goals of the plan in the form of practical procedures that can be followed up and supervised. the report guides the development of the audit plan, as the disclosure of the comprehensive audit strategy must contain sufficient details to guide when developing an internal audit or outsourcing plan. the audit strategy is comprehensive as indicated (saleh and waad, 2012). when outsourcing or outsourcing audit strategies to the service internal audit or outsourcing can be involved through strategic intent and feasibility a key area is to provide assurance that managers are using the recognized process to complete the feasibility study, to show that there is a clear business case aligned with the strategic objectives of the organization, in the absence of such a process internal audit can act in an advisory capacity to help establish an effective framework. implementation and management: internal audit can review the vendor selection process and assess whether the organization has adequate and effective bidding policies and procedures. in addition, contract management arrangements: internal audit can examine the performance management arrangements in place (tavasti, 2012). from the foregoing, the following hypothesis can be built: • is there a statistically significant effect of outsourcing internal auditing with its dimensions on the relationship between electronic auditing and auditing strategies in the companies under study? from the above, a hypothetical scheme can be designed, which indicates the logical relationship between the variables of the study: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 106 www.americanjournal.org figure (1) the hypothetical study scheme source: prepared by the researcher the main hypothesis: there is a statistically significant effect of outsourcing internal auditing with its dimensions on the relationship between electronic auditing and corporate auditing strategies. it branches out: • there is a significant effect of electronic auditing in its dimensions in auditing strategies through the economic dimension. • there is a significant effect of electronic auditing in its dimensions in auditing strategies through the neutrality dimension. • there is a significant effect of electronic auditing in its dimensions in auditing strategies through the dimension of professional specialization. • there is a significant effect of electronic auditing in its dimensions in auditing strategies through the knowledge transfer dimension. • there is a significant effect of electronic auditing in its dimensions in auditing strategies through the quality of auditing service dimension. results study population and sample: the number of these companies reached (21) companies, and (3) were excluded as a result of the invalidity of their answers for analysis (*), so that the number of companies in the study sample was limited to (18) companies. (210) forms were distributed, as if the recovered and valid ones for analysis were (202). application only, i.e. only 96% refund rate. analysis of the results: 1. the impact of electronic auditing on cross-economic auditing strategies. within the framework of the intellectual orientation of the study, it is possible to extrapolate and interpret the results that reflect the trends and values of the impact of electronic auditing on crosseconomic auditing strategies, as follows: • efficiency and effectiveness were recorded through the (economic) dimension, a positive (direct) effect on audit strategies, with a reading of (0.411), while guarantee and reliability were recorded through the (economic) dimension, a positive (direct) effect on audit strategies, with a reading of (0.139). as for validity and accuracy, it scored a direct reading of (0.509) in the auditing strategies. electronic auditing outsourcing internal auditing auditing strategies american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 107 www.americanjournal.org • the electronic audit variable through its three dimensions (efficiency and effectiveness, guarantee and reliability, validity and accuracy) recorded a positive (indirect) effect on auditing strategies, with a reading of (0.496). • the total effect of direct and indirect efficiency and effectiveness in cross-economic auditing strategies was (0.907). • the total effect of direct and indirect assurance and reliability on cross-economic auditing strategies was (0.635). • the total effect of correctness and accuracy, both direct and indirect, in cross-economic auditing strategies was (1.005). • the determination coefficient of (56.81) indicates that the efficiency and effectiveness dimension and the economic dimension explain this percentage (56.81) of the variance in auditing strategies, and that (43.19) of the variance is due to factors other than economic, which is a good coefficient that can be relied upon in explaining the behavior of audit strategies. the determination coefficient of (45.90) indicates that the guarantee and reliability dimensions and the economic dimension explain this percentage (45.90) of the variance in auditing strategies, and that (54.10) of the variance is due to factors other than economic, which is a declining coefficient that cannot be relied upon. in explaining the behavior of audit strategies. the determination coefficient of (53.87) indicates that the dimensions of validity and accuracy and the economic dimension explain this percentage (53.87) of the variance in auditing strategies, and that (46.13) of the variance is due to factors other than economic, which is a good coefficient that can be relied upon in interpreting audit strategies behavior. figure (2) a schematic diagram with path values for the causal relationship between the dimensions of the electronic audit variable in cross-economic auditing strategies based on these numerical indicators, the following are nominated: the fourth sub-hypothesis is rejected, which states that (there is a significant direct effect relationship between electronic auditing and economic auditing strategies) on a dimensional level (efficiency, effectiveness, and after guarantee and reliability). acceptance of the hypothesis on the level of dimension (correctness and accuracy). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 108 www.americanjournal.org 2. the impact of electronic auditing on auditing strategies through neutrality. within the framework of the intellectual orientation of the study, the results can be extrapolated and interpreted, which reflect the trends and values of the tracks of the impact of electronic auditing on auditing strategies through neutrality, as follows: • efficiency and effectiveness were recorded through the (impartiality) dimension, a positive (direct) effect on auditing strategies, with a reading of (0.60), while the guarantee and reliability dimension recorded, through the (impartiality) dimension, a positive (direct) effect on auditing strategies, with a reading of (0.101). as for validity and accuracy, it recorded a direct reading of (0.743) in auditing strategies. • the electronic audit variable, through its three dimensions (efficiency and effectiveness, guarantee and reliability, validity and accuracy), recorded a positive (indirect) effect on auditing strategies, with a reading of (0.110). • the total direct and indirect effect of efficiency and effectiveness on auditing strategies through impartiality was (0.710). • the total effect of direct and indirect assurance and reliability on auditing strategies through impartiality was (0.211). • the total impact of correctness and accuracy, direct and indirect, on auditing strategies through impartiality was (0.853). • the coefficient of determination of (44.82) indicates that efficiency and effectiveness and the dimension of impartiality explain this percentage (44.82) of the variance in auditing strategies, and that (55.18) of the variance is due to factors other than impartiality, which is a regression coefficient that cannot be counted it has to explain audit strategies. the coefficient of determination of (10.94) indicates that the dimension of guarantee, reliability, and the dimension of impartiality explain this percentage (10.94) of the variation that occurs in audit strategies, and that the percentage (89.06) of the variation is due to factors other than impartiality, which is a very weak coefficient that cannot be counted it has to explain audit strategies. the coefficient of determination of (64.77) indicates that the dimensions of correctness, accuracy, and the dimension of impartiality explain this percentage (64.77) of the variance in auditing strategies, and that (35.23) of the variance is due to factors other than impartiality, which is a good coefficient that can be relied upon in interpretation of audit strategies. figure (3) a schematic diagram with path values for the causal relationship between the dimensions of the electronic audit variable and cross-neutral auditing strategies american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 109 www.americanjournal.org the fifth hypothesis is accepted, which states that (there is a significant direct impact relationship between electronic auditing and audit strategies through impartiality) on a dimensional level (efficiency and effectiveness, validity and accuracy). the hypothesis is rejected at the level of the dimension (guarantee and reliability). 3. the impact of electronic auditing on auditing strategies across professional specialization. within the framework of the intellectual orientation of the study, the results can be extrapolated and interpreted, which reflect the trends and values of the tracks of the impact of electronic auditing on auditing strategies across professional specialization, as follows: • efficiency and effectiveness were recorded through the (professional specialization) dimension, a positive (direct) effect on auditing strategies, with a reading of (0.618), while guarantee and reliability were recorded through the (professional specialization) dimension, a (direct) positive effect on auditing strategies, with a reading of (0.618). 0.098), and as for the correctness and accuracy, it recorded a direct reading rate of (0.767) in the auditing strategies. • the electronic audit variable, through its three dimensions (efficiency and effectiveness, guarantee and reliability, validity and accuracy), recorded a positive (indirect) effect on auditing strategies, with a reading of (0.072). • the total effect of direct and indirect efficiency and effectiveness in auditing strategies across professional specialization was (0.69). • the total effect of direct and indirect assurance and reliability on auditing strategies across professional specialization was (0.17). • the total direct and indirect impact of validity and accuracy on auditing strategies across professional specialization was (0.839). • the determination coefficient of (42.09) indicates that the efficiency and effectiveness dimension and the professional specialization dimension explain this percentage (42.09) of the variation in auditing strategies, and that (57.91) of the variation is due to factors other than professional specialization, which is a regression coefficient that cannot be it is reliable in interpreting auditing strategies. the coefficient of determination of (5.69) indicates that the dimension of guarantee and reliability and the dimension of professional specialization explain this percentage (5.69) of the variance in auditing strategies, and that the percentage of (94.31) of the variance is due to factors other than professional specialization, which is a very weak coefficient that cannot be it is reliable in interpreting audit strategies. the coefficient of determination of (59.89) indicates that the dimensions of correctness and accuracy and the dimension of professional specialization explain this percentage (59.89) of the variance in auditing strategies, and that (40.11) of the variance is due to factors other than professional specialization, which is a good coefficient that can be counted it has to explain the audit strategies. based on these numerical indicators, the following are nominated: the sixth sub-hypothesis is accepted, which states that (there is a direct significant impact relationship between electronic auditing and auditing strategies through professional specialization) at the level of the three dimensions (efficiency and effectiveness, assurance and reliability, validity and accuracy). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 110 www.americanjournal.org figure (4) a schematic diagram with path values for the causal relationship between the dimensions of the electronic audit variable and the auditing strategies across the professional specialization 4. the impact of electronic auditing on auditing strategies through knowledge transfer. within the framework of the intellectual orientation of the study, the results can be extrapolated and interpreted, which reflect the trends and values of the tracks of the impact of electronic auditing on auditing strategies through knowledge transfer, as follows: • efficiency and effectiveness were recorded through the (knowledge transfer) dimension, a (direct) positive effect on auditing strategies, with a reading of (0.565), while guarantee and reliability were recorded through the (knowledge transfer) dimension, a (direct) positive effect on auditing strategies, with a reading of (0.565). (0.047), as for the correctness and accuracy, it recorded a direct reading rate of (0.705) in the auditing strategies. • the electronic audit, through its three dimensions (efficiency and effectiveness, guarantee and reliability, validity and accuracy), recorded a positive (indirect) effect on the audit strategies, with a reading of (0.238). • the total effect of direct and indirect efficiency and effectiveness in auditing strategies through knowledge transfer was (0.803). • the total direct and indirect effect of assurance and reliability on auditing strategies through knowledge transfer was (0.285). • the total effect of validity and accuracy, direct and indirect, in auditing strategies through knowledge transfer was (0.943). • the determination coefficient of (42.18) indicates that after efficiency and effectiveness and after knowledge transfer, they explain this percentage (42.81) of the variance in auditing strategies, and that (57.82) of the variance is due to factors other than knowledge transfer, which is a regression coefficient that cannot be it is reliable in interpreting audit strategies. the coefficient of determination of (17.66) indicates that after guarantee and reliability and after the transfer of knowledge explain this percentage (17.66) of the variance in auditing strategies, and that (82.34) of the variance is due to factors other than the transfer of knowledge, which is a very weak coefficient that cannot be it is reliable in american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 111 www.americanjournal.org interpreting audit strategies. the coefficient of determination of (55.11) indicates that after correctness and accuracy, and after knowledge transfer, explain this percentage (55.11) of the variance in auditing strategies, and that (44.89) of the variance is due to factors other than knowledge transfer, which is a good coefficient that can be counted it has to explain the audit strategies. figure (5) a schematic diagram with path values for the causal relationship between the dimensions of the electronic audit variable and the auditing strategies through knowledge transfer based on these numerical indicators, the following are nominated: the seventh hypothesis is accepted, which states that (there is a significant direct effect relationship between electronic auditing and auditing strategies through knowledge transfer) on a dimension level (efficiency and effectiveness, correctness and accuracy). the hypothesis is rejected at the level of the dimension (guarantee and reliability). 5. the impact of electronic auditing on auditing strategies through the quality of auditing service. within the framework of the intellectual orientation of the study, the results can be extrapolated and interpreted, which reflect the trends and values of the tracks of the impact of electronic auditing on auditing strategies through the quality of auditing service, as follows: • efficiency and effectiveness were recorded through the dimension (quality of audit service), a positive (direct) effect on audit strategies, with a reading of (0.441), while guarantee and reliability were recorded through the dimension (quality of audit service), a positive (direct) effect on audit strategies, with a reading of (0.441). its percentage is (0.083), and as for accuracy and accuracy, it recorded a direct reading of (0.653) in auditing strategies. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 112 www.americanjournal.org • the electronic audit record through its three dimensions (efficiency and effectiveness, guarantee and reliability, validity and accuracy) has a positive (indirect) effect on auditing strategies, with a reading of (0.378). • the total effect of direct and indirect efficiency and effectiveness in auditing strategies through the quality of auditing service was (0.819). • the total direct and indirect effect of guarantee and reliability on audit strategies across the quality of audit service was (0.461). • the total impact of correctness and accuracy, direct and indirect, in auditing strategies across the quality of auditing service was (1.031). • the coefficient of determination of (49.19) indicates that the two dimensions of efficiency, effectiveness, and quality of audit service explain this percentage (49.19) of the variance in auditing strategies, and that (50.81) of the variance is due to factors other than the quality of audit service, which is a regression coefficient that does not it can be relied upon in interpreting audit strategies. the determination coefficient of (36.39) indicates that the dimension of guarantee and reliability and the quality of audit service explain this percentage (36.39) of the variation in audit strategies, and that the percentage of (63.61) of the variation is due to factors other than the quality of audit service, which is a weak coefficient that does not it can be relied upon in interpreting audit strategies. the coefficient of determination of (62.41) indicates that the dimensions of correctness and accuracy and the quality of audit service explain this percentage (62.41) of the variance in auditing strategies, and that (37.59) of the variance is due to factors other than the quality of the audit service, which is a good coefficient that can it is reliable in interpreting audit strategies. figure (6) diagram with path values for the causal relationship between the dimensions of the electronic audit variable and audit strategies across the quality of audit service american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 113 www.americanjournal.org based on these numerical indicators, the following are nominated: the eighth hypothesis is accepted, which states that (there is a significant direct effect relationship between electronic auditing and auditing strategies through the quality of auditing service) on a dimension level (efficiency and effectiveness, validity and accuracy). the hypothesis is rejected at the level of the dimension (guarantee and reliability). conclusions and recommendations conclusions : 1) the field results of the path analysis showed that there is an effect of electronic auditing on the level of the dimension (correctness and accuracy) in the strategies of cross-economic auditing. while the results showed that there was no effect of electronic auditing on a dimensional level (efficiency, effectiveness, after guarantee, and reliability) on auditing strategies through economics. 2) the field results of the path analysis showed that there is an impact of electronic auditing in its dimensions (efficiency and effectiveness, validity and accuracy) on auditing strategies through impartiality. while the results showed that there was no effect of electronic auditing on the level of the dimension (guarantee and reliability) in auditing strategies through neutrality. 3) the field results of the path analysis showed that there is an impact of electronic auditing in its dimensions (efficiency and effectiveness, assurance and reliability, validity and accuracy) on auditing strategies across professional specialization. 4) the field results of the path analysis showed that there is an impact of electronic auditing in its dimensions (efficiency and effectiveness, validity and accuracy) on auditing strategies through knowledge transfer. while the results showed that there was no effect of electronic auditing on the level of the dimension (guarantee and reliability) in auditing strategies through knowledge transfer. 5) the field results of the path analysis showed that there is an impact of electronic auditing in its dimensions (efficiency and effectiveness, validity and accuracy) on auditing strategies through the quality of auditing service. while the results showed that there was no effect of electronic auditing on the level of the dimension (guarantee and reliability) in the auditing strategies through the quality of the auditing service. recommendations : 1) it is important to focus on the electronic audit system, which has become an indispensable necessity to advance the audit process and its entry into the age of technology. 2) the existence of accurate security and control over information resources related to the company must be a priority for senior management, and although the objectives of control remained similar in light of the use of information technology, the methods of control and security have changed fundamentally in light of developments in electronic commerce and information technology. 3) the auditor in the company should be qualified to understand the standards, and competent to know the type and size of evidence to be obtained, as well as enjoy mental and material independence. 4) setting several professional standards that direct and regulate methods of dealing with these systems while auditing the information technology environment in companies. 5) work on preparing a list of outputs in sufficient detail to enable the auditor to track individual financial operations from the original documents to the outputs and vice versa. in other words, the auditor must be able to track the flow of financial operations from the original documents forward american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 114 www.americanjournal.org through the audit trail to the general ledger with a move in the opposite direction. from the general ledger back to the original documents. references 1. abbas, qaisar, & iqbal, javid, (2021), “internal control system: analyzing theoretical perspective and practices”, middle-east journal of scientific research, vol. 12, no.4, pp. 533. 2. abdol mohammadi, m., (2021), “correlates of cosourcing outsourcing of internal audit activities auditing”, a journal of practice & theory, vol. 23, no.3, pp. 72. 3. abdolmohammadi, m., (2013), “correlates of 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through service level agreements in it outsourcing: an application of the commitment – trust theory", decision support systems, vol. 29, issue 10. 44. hanh, hoang thanh, (2021), “potential relationship of internal control, internal audit and risk management in company the case study of ingroup in vietnam”, academy of policy and development, vol. (7), issn: 2446-6220, hanoi vietnam . 45. hashem, boutheina, & hiyam sujud, (2020), “the impact of using it on the quality of auditing in lebanon”, international research journal of finance and economic, issn 1450-2887 issue 178. 46. hawkins, timothy g., nissen, mark e. & rendon, rene g, (2014), “leveraging strategic sourcing and knowledge management to improve the acquisition knowledge based services”, journal of public procurement, vol. 14, no.2, pp. 219. american journal of business management, economics and banking issn (e): 2832-8078 volume 14, | july, 2023 p a g e | 104 www.americanjournal.org the role of electronic accounting software in strengthening the internal control system and its reflection on the quality of investment decisions researcher: mohammad hamid majeed mhmaa28@outlook.com mr. dr. khamoussi ahmed halioui college of economic sciences and management of sfax a b s t r a c t k e y w o r d s the study aimed to obtain an opportunity to obtain an opportunity to obtain the results of the research, and to link them with high quality. the study population consisted of (150) employees, the study sample included (150) male and female employees working in the bank. the number of questionnaires retrieved and valid for analysis was (130) questionnaires from senior management managers, accountants, auditors, and accounting profession employees. the study concluded that the number of males in the study is greater than the number of females. the researcher attributes the high number of males compared to the number of females in the study community to the bank's interest in attracting male employees, since the majority of the work required to be implemented is field and technical work and requires physical effort, and that the level of electronic accounting programs in the industrial bank of iraq was high, and that the level of quality of investment decisions was high and that the level of the internal control system was average. the study recommended the need to disclose the effectiveness of the internal control system and show its strength and effectiveness to ensure the credibility of electronic accounting programs and the need to update the programs used by specialists on an ongoing basis in the industrial bank of iraq. and the necessity of coordination between electronic accounting programs and the work of periodic maintenance procedures for them. and the need to provide infrastructure in the industrial bank of iraq. statistical analyzes were conducted to describe the characteristics of the study sample using the statistical program (spss). the frequencies and percentages of the study sample, the arithmetic averages and the standard deviations were calculated. the regression equation (multiple regression analysis) was used to test the hypotheses. the cronbach alpha coefficient was used to ensure the stability of the study tool. electronic accounting software,strengthening the internal control system, the quality of investment decisions, iraq. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 105 www.americanjournal.org introduction our current world is witnessing a great change, and this change has been accompanied by very rapid technological progress, and the effects of this progress are reflected in all aspects of economic and social life, especially the work sectors, commodity production and service provision, which prompted an increase in competitiveness between the banking sectors in terms of technology, until technology for some banks became the basic means that enable the development and improvement of services . the banking sectors are of high relative importance due to the active role they play and contribute to human development on a large scale, and this calls for the introduction of the role of information technology, which may constitute a scientific basis and a basic building block for the banking sector, and this calls for the creation of new capabilities within the country that will change the sectors business at all levels, thus contributing to the development of the country and keeping pace with the world. iraq, in particular, and after its exit from the period of the blockade imposed on it in 2003, witnessed a set of changes that pushed towards openness to the countries of the world and keeping pace with globalization, as the widespread integration in the commercial scale and an increase in the number and diversity of institutions and an increase in their resources prompted the science of accounting, being one of the social sciences, to keep pace with that development. however, this development was not without stumbling or crises, including the financial crisis that occurred in the year 2008 as a result of mistakes, whether they were intentional represented by functional fraud and embezzlement fraud, which were called financial crimes, or unintentional as a result of a functional error, which led to the collapse of companies with weight mali, and according to a report prepared by the united nations in 2010, in which it declared that typical institutions lose 5% of their revenues as a result of financial crimes (maruschak, l. 2021) . the study problem the islamic industrial bank suffers from the problem of poor use of information technology in the bank, which may negatively affect the quality of the outputs of the islamic bank of iraq compared to other countries in the region and the world. here, information technology contributes to the use of electronic accounting programs in improving the quality of services provided by the islamic bank of iraq through a study the case of the use of information technology in the bank, as (al-shaher, hussein, 2022) and (elias, 2018) explain, due to the tremendous developments in technology, there is a need for institutions to keep pace with it, especially in the field of accounting business, as not relying on an accounting information system is based on accounting programs on the computer lead to delays in the completion of those accounting and financial activities for the beneficiaries, and thus the lack of sufficient information for the beneficiaries . we find it necessary to have an accounting information system that collects and processes data from its various sources and delivers information to the beneficiaries in order to exercise the function of planning and controlling accounting operations, solving accounting problems, as well as making decisions. while (liu, 2016) indicates that companies that apply electronic accounting work are reflected in their control systems and other means in making some changes that would provide reliable information that can be adopted by investors in building their decisions. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 106 www.americanjournal.org therefore, the problem can be formulated as follows: 1 what is the extent of the role played by those in charge of electronic accounting programs in achieving the quality of investment decisions ? 2to what extent do those working on electronic accounting programs have the qualifications, experience and skills in resolving cases of lawsuits against institutions by investors ? 3 what is the extent of the role played by workers in electronic accounting programs in strengthening the internal control system? 4 what is the extent of the relationship between the dimensions of internal control systems and the quality of investment decisions ? objectives of the study the objectives of the study are summarized in the following: 1the study aims to identify the extent of the role played by those in charge of electronic accounting programs in achieving the quality of investment decisions. 2 the study aims to identify the extent to which employees of electronic accounting programs have qualifications, experience and skills in resolving cases of lawsuits against institutions by investors. 3 the study aims to identify the role played by workers in electronic accounting programs in strengthening the internal control system. 4 the study aims to identify the extent of the relationship between the dimensions of internal control systems and the quality of investment decisions. study outline american journal of business management, economics and banking volume 14 july, 2023 p a g e | 107 www.americanjournal.org study hypotheses the researcher relied on a set of main and sub-hypotheses, which is a temporary answer to the questions presented and expressive of the studied problem. the hypotheses were identified as follows: the first main hypothesis: there is a significant effect of electronic accounting programs on the quality of the investment decision . the following sub-hypotheses are derived from this hypothesis : there is a significant effect of working individuals on the quality of the investment decision. there is a significant effect of the software on the quality of the investment decision. there is a significant effect of the database on the quality of the investment decision. there is a significant effect of appropriateness in the quality of the investment decision. there is a significant effect of reliability in the quality of the investment decision. the second main hypothesis: there is a significant effect of the internal control system on the quality of the investment decision at the macro level. the following sub-hypotheses are derived from this hypothesis : there is a significant effect of the regulatory environment on the quality of investment decisions. there is a significant effect of control activities on the quality of investment decisions. there is a significant effect of risk assessment on the quality of investment decisions. there is a significant effect of information and communication on the quality of investment decisions . there is a significant effect of monitoring and control on the quality of investment decisions. the third main hypothesis: there is a significant effect of the quality of investment decisions in the relationship between electronic accounting programs and the strengthening of the internal control system. the importance of studying the importance of the study is evident in two aspects: 1 theoretical side : the importance of electronic accounting programs lies in improving the nature of the institution by providing information to investors and those interested in the data of those institutions, as well as restoring confidence and reassurance to the investor public that there is no misleading financial reports by supporting the internal control system to achieve transparency in the disclosure of financial information. with regard to strengthening the internal control system, electronic accounting programs help push institutions towards applying these systems fully and in all their dimensions. thus, electronic accounting programs will have the final decision to produce information closer to reality and follow up on reports on the internal control system and the work of those systems and their effective involvement within the institution, which achieves the provision of more reliable financial reports that achieve investor confidence . 2the practical side: the importance of the practical study lies in the nature of the results it reached through activating the electronic accounting programs as the real party responsible for providing real information, and the electronic accounting programs have a role in helping data users for the purpose of making investment decisions in a way that guarantees the credibility and accuracy of the information. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 108 www.americanjournal.org the third topic: the methodology and objectives of the study study methodology the methodology of the study includes each of the study variables and their measurement methods, the study population and the sample, the data collection method, the data required for the study and its sources, and the statistical methods used in data analysis. this is as follows : 1study variables and methods of measuring them: the variables of this study are divided into the following: a the independent variable: electronic accounting software in measuring the variable of electronic accounting programs, the researcher will rely on each of (alsharida, al-samarrai, 2021), (karfou’ and others, 2016) and (al-tatter, 2015), which includes the following dimensions : personnel, software, database, suitability, reliability. bthe mediating variable: evaluation of the internal control system in measuring the internal control system evaluation variable, the researcher will depend on the study tool, which is (the questionnaire), which includes the following dimensions: (control environment, control activities, risk assessment, information and communication, monitoring and control. cthe dependent variable: the quality of investment decisions in measuring the quality of investment decisions, the researcher will depend on the study tool, which is (the questionnaire). terminology of study in the following, a theoretical introduction can be reviewed that includes the basic concepts of the research, which are electronic accounting programs, evaluation of internal control methods, and reliability of integrated reports. 1 electronic accounting software. ) romney m.b & steinbart pj, 2015) defines electronic accounting software as "a set of systems that depend on the physical and human element, to carry out operations on financial data in accordance with generally accepted accounting standards and laws in order to provide more accurate information that helps management and users to make decisions". 2 the internal control system. the committee of sponsoring organizations (coso) defines the internal control system as “the set of processes implemented by senior management, the board of directors and other employees within the organization with the aim of achieving goals in the following categories (janvrin, diane j., et al, 2011( •effectiveness and efficiency of operations . •reliability of reports. •compliance with applicable laws and regulations. 3 the quality of investment decisions. these are the rational investment decisions that an audience of investors take with the aim of achieving the planned goals (ben rahmon, 2018). american journal of business management, economics and banking volume 14 july, 2023 p a g e | 109 www.americanjournal.org the second topic: a review of previous studies previous studies the researcher will review some of the literature presented in the field of research by reviewing some arab and foreign studies that dealt with the subject of the research or some of its aspects. identify the research gap . studies related to electronic accounting programs astudy (maruschak, 2021) entitled: accounting software in modern business. the study aimed to investigate the functions and characteristics of accounting software to facilitate the choice between a variety of similar products and analyze their pros and cons that could affect the performance of companies. the authors classify accounting software according to its capabilities to serve different administrative purposes. because accounting software has hundreds, some even thousands, of features, the aggregation method gives the possibility to categorize similar models that may fit a company's specific requirements of size, cost, customization, formats, deadlines, models, and suppliers. observing and comparing data has shown that cost accounting software is crucial to making the right decision. as the global accounting software market tends to abrupt change in electronic accounting, which makes it impossible to predict the future behavior of accounting software users. to determine the objectives of this research, statistical procedures are performed. the results received can help potential users of accounting software products to select the appropriate product based on the advantages and disadvantages listed among the best sellers allocation tools, forex dealing, financial and management reporting system and analytical capabilities. the lack of previous research studies on the topic and the lack of available data greatly restricted the scope of the analysis. the obtained results gave the possibility of identifying the main elements in the formation of the list of features necessary to make the right choice of accounting software products. facts have shown that managers, who do not think about the specific needs and features of accounting software, face the problem of inconsistency with company requirements. the research is based on theoretical and experimental data. to collect the necessary data for the research there a quantitative approach was used. the analytical method helped to analyze and evaluate the factors that can be considered and that must be taken into consideration when selecting the most appropriate accounting software process for companies. the research is dedicated to the problems associated with the uncertainty that is appearing in the accounting software market. this research adds new knowledge to the field of accounting, where there was a theoretical and practical refutation of the knowledge of accounting programs . bstudy (wahab, maash, 2021) entitled: accounting information systems and their role in designing cloud accounting applications and their impact on decision-making . the study aimed to identify the concept of accounting information systems and the important role it plays in designing cloud software applications, through easy access to the accounting and administrative data required for any level of management, and for the purpose of achieving the objectives and hypotheses of the research, a cloud accounting program was programmed and designed using databases and monitoring the results. the results of the research showed that the adoption of accounting information systems in cloud programs reduces transmission and writing errors, because the operations from entries to financial results are done automatically, and the adoption of databases in cloud programs affects the results, as the recall of the results that have been entered be smooth and easy to use, and research recommends cloud software designers to adopt databases in cloud software design because it facilitates american journal of business management, economics and banking volume 14 july, 2023 p a g e | 110 www.americanjournal.org studies related to the internal control system a study (otero, 2021) entitled: accounting environment: ranking of internal controls to safeguard accounting information and its integration with it operations. cybercriminals continue to target organizations' accounting information mostly because of its sensitivity and high value. this leads to huge losses affecting the confidentiality, integrity and availability of this information. general information technology controls related to computer operations or gitc-co are essential to ensuring the security, integrity, completeness and reliability of accounting information. the aim of this research is to develop an assessment methodology, based on traditional systems theory, that will appropriately address the weaknesses identified in traditional assessment methodologies, leading to more accurate selection of controls. through case assessment, the approach has proven successful in providing a more accurate and complete assessment of gitcco in organizations. b study (al-samarrai, 2016) entitled: (the impact of the internal control system on the quality of financial reports(. this study aimed to demonstrate the effect of the internal control system on the quality of financial reports in the jordanian pharmaceutical companies listed on the amman stock exchange. the study population consisted of the jordanian pharmaceutical manufacturing companies listed on the amman stock exchange for the year (2016), which numbered (6) companies. on the amman stock exchange. studies related to the quality of the investment decision a study (wang & all, 2015) entitled: financial reporting quality, free cash flow, and investment efficiency. this paper is based on examining the relationship between the quality of financial reports and investment efficiency and analyzing the effect of the interaction between financial reporting and free cash flow on investment efficiency. we used 3,726 samples of chinese listed companies during the period 2008-2012 to test empirical models and found that the quality of financial reporting is negatively associated with both underinvestment and overinvestment. moreover, we found that the quality of financial reporting is strongly associated with overinvestment for companies with large free cash flow, suggesting that the quality of financial reporting can reduce information asymmetry caused by agency conflicts between managers and investors. this research extends to the application of quality financial reporting and investment efficiency in emerging capital markets in the world. moreover, this is the first study to analyze the effect of the interaction between financial reporting quality and free cash flow on investment efficiency . b study (shahera, naziha, 2018) entitled: improving investment decisions using the quality of financial information. the study aimed to identify the extent to which financial information contributes to improving the quality of investment decisions, and this is what financial information gains importance in making investment decisions. this topic aims, through the descriptive analytical approach, to try to identify investment decisions and the elements of investment decisions, its stages and objectives, as well as the factors affecting it. commenting on previous studies and identifying the research gap through the previous studies that were presented, the most important results can be reached: the researchers indicated through previous studies that they agreed in terms of variables. they used the variable (electronic accounting software) and they were applied in different fields, including public american journal of business management, economics and banking volume 14 july, 2023 p a g e | 111 www.americanjournal.org shareholding companies, so that the researcher could start in his study in terms of the endings that were touched upon by previous studies, complementing that and relying on showing what is new and different. what the previous studies came up with and benefiting from the measurement indicators that the researchers adopted in their studies. with regard to the variable of internal control systems, many studies have been collected and applied in more than one place and dealt with many variables that have a positive and negative impact on internal control systems. with regard to the quality of investment decisions, the research has dealt with many studies related to the variables that affect the quality of investment decisions, in addition to the impact of those decisions on the variables, that is, what you can get from the quality of investment decisions and what you can reach through it to the quality of the financial statements. accordingly, the researcher was able, through the previous studies, to obtain a quantity of information regarding the study variables and the measurement indicators for those variables, in addition to the goals and results reached by those studies. the gap in this study lies in the results it will reach through the method of linking the variables of the study, which is (the role of electronic accounting programs in strengthening the internal control system and its reflection on the quality of the investment decision), which was not raised in most cases in a previous study through the field of work that will be dealt with in this study. the study is a public shareholding company. the second chapter: the theoretical construction of the relationship between electronic accounting programs and their effects on the quality of investment decisions through the mediating role of strengthening internal control systems. 1.2 the first topic: electronic accounting 1.1.2 introduction the nature of the world in which economic blocs prevail, the growing volume of electronic business, the magnitude of investments and the amazing progress in information technology based on the use of computers, so the electronic accounting information system is one of the important controls in technological progress, and electronic accounting has witnessed many fundamental changes and the reason for this is due to the change in the commercial and industrial environment and the technology of computer devices that have a high capacity to process a huge number of accounting operations in a short period of time, in addition to that this advanced technology, which has become available at the lowest cost, has enabled the management to save and process large-scale data used in decision-making without increasing from the production cost of the institution and during all stages, this application contributed to a significant degree in the performance of the work of the specialized auditing authority, as the auditing related authorities seek to activate the role of the profession through the accounting standard application that gives a sound and effective character to the preparation of useful reports that obligate institutions to the emerging decisions in order to follow an accurate accounting approach that guarantees success and continuity in light of major economic challenges (haddadi et al., 2018(. 2.1.2 the concept of electronic accounting. electronic accounting has been defined as "the practical application of computer uses in the field of accounting in general, and it has made the mechanism of recording and processing operations very quickly and accurately. these uses have developed so that they have become systems linking the various components and departments of the enterprise to create integration among them and to facilitate work within the enterprise as a whole and through these systems the procurement elements are linked to inventory, human resource management and customer service" (al-hussein, 2013) . american journal of business management, economics and banking volume 14 july, 2023 p a g e | 112 www.americanjournal.org anis and omar (2016) defined electronic accounting as a set of elements resources (individuals, equipment, machines, funds, records, and others that are linked and homogenous that interact with each other within a specific framework (without the system), working as a single unit to achieve these, or a set of goals under general conditions (the system environment) they are routinely monitored by administrators. the researcher believes that electronic accounting is to take advantage of technological and electronic means in data collection, storage and processing in all its forms, whether printed or intended, audio or laser-processed, and then transmitted and retrieved in order to achieve more effective and efficient management to achieve the desired goals. 3.1.2 the importance of electronic accounting. the accountant needs to expand the scope of the idea from the concept of traditional accounting to the concept of accounting using the computer, in order to be able to deal with accounting in an easier and more effective manner, and since all companies seek to improve the level of work performance in them, and these programs allow to significantly increase their efficiency, through what it provides of special skills for all that is new in the field of accounting. there is no doubt that the principle of electronic accounting helps in increasing the accuracy of accounting data. this principle entails that the data, when entering the accounting cycle, is written once and is achieved once, after that it goes in its orbit in the accounting cycle with less human effort without need to rewrite it again, electronic machines do not make mistakes, or at worst, the possibility of error is very weak when compared to the case of the employee who wrote it, so the principle of writing data once requires writing the same process once, and this principle excludes the possibility of human error and helps i have to achieve the accuracy of the accounting data, and there is no doubt that it helps in saving the time required to implement the accounting process (ibrahim, 2021.) 25.1. dimensions of electronic accounting. electronic accounting has several dimensions that make it more efficient than traditional accounting. these dimensions are as follows: (khasheef, 2022). 1 the feature of automation in electronic accounting on computer applications and the operation of the internet with all its capabilities, and fetching accounting data from databases to process them by applying the advanced forms to them through the computer to achieve accounting goals. 2areas of modern knowledge based on other fields such as computer science, networks, communications, statistics, accounting and information systems. 3 globalization in electronic accounting has international dimensions based on the use of the internet information network to bring information at any time and from anywhere in the world linked to this economic network in the use of the best alternative to the method of accounting education. there are other dimensions of electronic accounting as follows: (al-taie and mohammed, 2017) 1 individuals: that individuals are an essential element in the formation of any information system, and these individuals can be divided into : a users: they are the individuals who use the system, or the information produced by the system, who can be accountants, salesmen, engineers, customers, or managers . b systems analysts: they design the system based on the informational requirements of the end user . c software developers: they prepare computer programs, in light of the specifications provided by systems analysts. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 113 www.americanjournal.org dsystem operators: they assist in monitoring, managing and operating various computer systems and networks . 2hardware: devices mean the physical components and media used in the operations that data and information go through. hardware or hardware components do not only include the computer, but also include all tangible media and objects on which data and information are recorded, such as: magnetic or optical disks, and the computer system. automation, which consists of four basic components: a input units: it is a set of units that are used in entering accounting data, programs and orders . b the central processing unit: it consists of the arithmetic and logic unit. this unit specializes in organizing the relationship between all computer units by directing the implementation of the data flow, processing and output. it consists of a unit of the main memory unit for processing. the output unit performs the required operations and receives the results as well . c output units: it is a group of units through which the results extracted as a result of the operations performed on the data can be viewed, and the most common means are: the visual display (screen, printer attached to the computer, in addition to many other means .) d the additional storage unit (secondary memory): it is used to save information or results outside the computer for a long period of time, such as: cds, magnetic disks, and others. 3software: which includes all types of instructions required in data processing, including operating system groups, which direct and control the physical components of the computer, and are called programs. there are two types of system software, which are: (naguib et al., 2019(ز a operating system programs: which are on the computer system and provide the required support for it, such as (dos) and windows (windows(. b application programs: these are programs that direct procedures and operations for specific computer uses by the end user, such as: (statistical analysis programs, electronic spreadsheet programs, word processor programs(. 4data: it is more than raw materials for information systems, and data is a resource of high value in the economic unit, so it should be invested and managed effectively in order to secure its benefit to the end user in the economic unit. 5 databases: the accounting database represents a group of files that are logically linked to each other and stored in an organized manner that facilitates access to application programs in order to process the data contained in these files. 6 appropriateness: in order for the accounting information system to be useful, it must be appropriate for the purpose for which it was prepared. appropriateness is a major requirement for information to benefit from in evaluating administrative policies, drawing up plans and controlling them, and contributing to achieving the organization’s goals. it is considered appropriate and important if it is disclosed or the absence of an impact on the decision of users of this information, has described the american association of accountants criterion of appropriateness as "the basic criterion for choosing between alternatives accounting information". 7 reliability: that is, the accounting information should contain a degree of verifiability or objectivity based on sufficient evidence, or be free from bias that may result from the use of inappropriate methods in obtaining accounting information, or be prepared according to desired by the decision-maker in the organization. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 114 www.americanjournal.org 2-2 the second topic: the quality of investment decisions 2-2-1 introduction the concept of the quality of rational investment decisions is based on the principle of economic rationality, on which economics is mainly based, as it is assumed that the investment decision-maker is characterized by the ability to properly dispose of the available scarce resources, i.e. the process of researching how to use economic resources in the best possible use, which have many uses ,. where it reaches the employment and investment of those resources in the activity or project that gives the largest possible return on investment, taking into account the opportunity cost or lost or sacrificed opportunity (barhayili and zubair, 2018(. the quality of investment decisions is a preliminary step for choosing the available investment alternatives in order to achieve the greatest possible return. the mechanism of the investment project decision-making process takes place through stages starting with the technical study, which include the conditions for realizing this project, and the extent to which the investment project responds to the decision to be taken, and this is in accordance with the available capabilities. as for the second stage, which is the most important stage in the mechanism of the investment decision process, and determining the financing pattern that allows the realization of the project, the final decision remains based on the first stage (barhayili and zubair, 2018 ( 2-2-2 the concept of the quality of investment decisions al-bashir defines the quality of investment decisions as “the optimal employment or use of capital. investment involves directing the accumulated savings or wealth to productive uses that can fill the economic need and at the same time is expected to produce a return” (al-bashir, 2017(. the quality of investment decisions can also be defined as “that decision that is based on choosing the investment alternative that gives the closest investment return from at least two alternatives, and that is based on a set of studies that precede the selection process and go through several stages that end with choosing the viability of this alternative for implementation within a specific methodological framework according to the objectives the investment project" (boukouma and osmani, 2019(. the researcher believes that the term investment and investment decisions are related to different activities, but the main goal is to employ money over a period of time to enhance the investor's wealth, and that the investment decision is a preliminary step to choosing the available investment alternatives in order to achieve the largest possible return and the lowest risk. 2-2-3 the importance of the quality of investment decisions. the importance of investment is due to the need for each individual to possess sufficient experience that enables him to achieve returns compared to the level of risk that he is willing to bear. therefore, knowledge of investment principles and the foundations of investment portfolios helps in wealth management. on the other hand, the study of investment produces skills in a field that helps to join in the fields of jobs available in various financial institutions, we find that investment needs specialists in the field of investment to participate, for example, in the sale of new securities or mergers and acquisitions, in addition to the above, we need specialized experts for the purpose of preparing reports that are presented to customers to help them make a decision decisions such as decisions to buy or sell securities. as for insurance companies, they own investment portfolios and need a continuous evaluation of the assets in the portfolio. therefore, investment funds need financial analysts to evaluate american journal of business management, economics and banking volume 14 july, 2023 p a g e | 115 www.americanjournal.org available securities and make buying and selling decisions. therefore, studying investment helps to join a large number of jobs. in the financial institutions sector (mukhtar, 2020). 3.2 the third topic: internal control 1.3.2 introduction due to the developments that have taken place in the field of business in general, and the areas of accounting and auditing in particular, the internal audit has evolved to become broader and more comprehensive, as it includes all areas of the company’s financial and operational work, due to the large size of the companies and their geographical expansion. the complexity of operations, the decentralization of management, and the rapid technological changes, as the need has increased it is due to the external auditor's reliance on statistical samples and the occurrence of a great focus on the phenomenon of financial fraud, fraud and manipulation, and also contributed to the development of internal auditing by the financial scandals that rocked a number of major institutions in the west, such as enron in the united states of america and abram company italian machines and other companies (shoaib et al. 2022(. the researcher believes that the function of the internal chest is one of the important functions in the organizations today, in view of the great expansion in the pilgrims, and the great developments that occurred in the financial and administrative fields, and the increase in the opponent between the organizations and through this chapter, we will be overwhelmed to an advance of the interior . 1.3.2 the concept of internal control the american institute of auditors defines internal auditing as “an independent, confirmatory, objective, consultative activity designed to add value to the organization and improve its operations. as for the committee of organizations sponsoring the integrated internal control framework, it defined it: “it is a process affected by the board of directors of the institution, designed to give reasonable assurance about the institution’s achievement of its goals in the following aspects are the efficiency and effectiveness of operations, reliance on financial reports, and compliance with applicable laws and regulations (salhi, 2016 (. )wardat et al., 2021) is also defined as an independent evaluation activity that is established within the organization to audit operations as a service to management and works to measure and evaluate the effectiveness of other control methods. internal auditing is a work carried out by persons, an organization, or auditors affiliated with the establishment, in order to be reassured by the management of the establishment on a regular basis, on the proper functioning of the work and the protection of the establishment’s funds, and to achieve the goals of management in the greatest possible production and administrative efficiency, and to encourage adherence to administrative policies (abdul razzaq et al., 2021(. the researcher believes, through these previous definitions, that it can be said that “internal audit is an independent work carried out by qualified persons or bodies belonging to the organization in order to ensure the correctness and integrity of operations and financial statements in order to achieve the goals of the organization. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 116 www.americanjournal.org 2.3.2 importance of internal control the reason for establishing an internal control system in organizations is to help them achieve their goals, and the system contains a set of policies and procedures that are designed to provide management with appropriate assurance that the basic goals of the organization will be achieved, and the report of the audit procedures committee of the american institute of certified public accountants indicates the increasing interest in internal control is due to the following factors (odeh, 2018 :) a the increasing scope and size of organizations, which led to the complexity and complexity of their organizational structures, and in order for operations to be effectively monitored, management should rely on many reports and analyzes that have a high degree of reliability. management bears primary responsibility for preserving the organization's assets and preventing any errors. the discovery of embezzlement, and therefore the maintenance of an efficient system of internal control, is indispensable and the administration relies on its blindness in fulfilling this responsibility . b from a practical point of view, it is impossible for the external auditor to conduct a detailed audit of most organizations within the limits of reasonable economic fees, and to rely on test auditing, rather than a comprehensive audit, and therefore it was necessary from the outset when dealing with operations to have the proper controls provided by the internal control system. . the researcher believes that the importance increases with the complexity of the accounting and administrative systems, and the distance between operations and transactions from the view of the senior management, as it is difficult to control the executive departments and departments and follow them directly. 4.3.2 dimensions of internal control we can learn about the dimensions of auditing through the following definitions, which we will summarize as follows (al taoist, 2019(. auditing is a regular process that depends on thought and logic. therefore, it is considered an activity that must be planned in advance, and the implementation process must be systematic and not random. the necessity of obtaining evidence and clues that are evaluated objectively, and this is considered the essence of the audit process, and it is the basis upon which the auditor relies in expressing his opinion on the financial statements of the institution. auditing includes expressing an opinion or issuing a judgment. hence, it is necessary to develop a set of standards that are used as a basis for evaluation and personal judgment. on the one hand, these standards and generally accepted accounting principles that are used as a criterion for judging the integrity of the data under study. communicating the results of the audit to the concerned parties. therefore, the audit represents a means of communication in terms of examination, study and delivery to the concerned authorities on the report that includes his opinion. the auditor relies. we note that the internal control system is based on the following dimensions (hamidat et al., 2022 ( 1 examination: that is, examining accounting data and records to ensure the correctness and integrity of the transactions that were recorded, analyzed, and classified . 2 investigation: which is the judgment on the validity of the final financial statements for the correct expression of the result american journal of business management, economics and banking volume 14 july, 2023 p a g e | 117 www.americanjournal.org the fourth topic: the relationship between electronic accounting programs in strengthening the internal control system and its reflection on the quality of investment decisions the computer has played an essential role in the processing of accounting data, as many companies have moved to electronic accounting, depending on their activities. this is what requires auditors to be scientifically and practically qualified to carry out their job with high intention. despite the technological developments that have taken place, auditing as a science has not changed in terms of its nature and purpose, and the burning change and the methods used to audit electronic accounting systems, and the evaluation and activation of the internal control system (lammari and zaidan, 2015(. also, the auditor cannot rely on any of the auditing methods separately, but he must make an integration between the methods he uses in the light of the experiences and skills that are available in him and in the audit team, as well as in light of achieving the objectives of the audit process in the least possible time and at the lowest cost, and the nature of the electronic accounting information system in place of auditing (lamari and zaidan, 2015(. the objectives of the internal control system will not change, whether the method followed in data processing is manual or electronic, as the goal of protecting the assets of the unit remains present and has been added to it to protect the assets of information technologies from any misuse or theft and to take all measures that would protect and preserve them from unauthorized access with regard to the goal of obtaining accurate and sound data, it exists in an environment that uses information technologies, and that the control procedures used have paid great attention to this goal through several effective control methods, as protection measures are put in place on the data from the beginning of its entry into the system by setting procedures it would specify the persons authorized to enter the data and the persons who are allowed to make modifications and additions to it and the existence of procedures to revise it before starting the process of operating and processing it as well as setting a number of control methods that are implemented during the data processing process and that is by making sure that the approved programs are the ones that are being worked on and that the documentation process is in place in a clear and detailed way, and any modifications to programs and processes are only made with the presence of approval and authorization for specific people, in addition to the concern that the information resulting from the data processing process is not allowed to be viewed except by authorized individuals, and the goal of adherence to policies, procedures and instructions has not changed if there are methods control to carry out the task of achieving this goal through the many procedures that are used, the most important of which is the development and drawing up of policies, instructions and guidance by the unit management that the workers must abide by, in addition to the existence of a guide to job descriptions as well as one of the important procedures is the separation of jobs within the unit and the identification of powers, authorizations and responsibilities. performance evaluation exists by monitoring the outputs and comparing them with what is required through user control. in addition to all of this, the presence of preventive, warning and remedial monitoring at all stages through which the operations go through would enhance the effectiveness of the internal control system (al-shuraida and al-samarrai, 2021(. from the foregoing, the researcher believes that the methods of internal control are the ones that have undergone change and addition. as for the objectives of internal control, they have not changed. by using information and communication technologies, achieving the objectives of the internal control system will be at the lowest time, effort, and cost. the outputs that will be obtained are characterized by a high degree of accuracy, clarity, completeness, and the required time. one of the fundamental american journal of business management, economics and banking volume 14 july, 2023 p a g e | 118 www.americanjournal.org differences that occur in the methods and procedures of internal control is in the process of applying them, as the majority of control procedures are applied in electronic systems through physical techniques, while in light of manual systems they are applied by the human element only, and with regard to the data processing process, the use of information technologies lead to the operation of all data in a unified manner and therefore it is less prone to errors than the manual operation of data, which is subject to the human factor . 3-3 the study population and its sample. the study population consists of workers in the industrial bank of iraq, as the number of employees reached (150) workers, both male and female, including expert accountants, auditors, account officials, accounting staff, a group of lawyers and professors. higher managements are expert accountants, auditors, and accounting profession employees . 3-5 study procedures to achieve the objectives of the study, the researcher conducted the following: select the study population and sample members . the study tool was built, and its validity and reliability were verified. the study tool (questionnaire) consisted of four sections, the first section: (demographic variables), the second section: (electronic accounting programs), and the third section: (the quality of investment decisions). the fourth section dealt with: (internal control system.) the respondents' responses to the questionnaire were emptied into the computer's memory, and statistical analyzes were conducted using the statistical program (spss( 3-6 the statistical methods used 1statistical analyzes were carried out using the statistical program (spss.) 2frequencies, percentages, arithmetic means and standard deviations. 3the regression equation (multiple regression analysis) was used to test the hypotheses. 4the hierarchical regression equation was used . 2.4 describe the characteristics of the study population this part shows the results of the analysis related to the data related to the study population and its distribution according to demographic and functional variables, which included gender, age, scientific experience, educational level, and job title. frequencies and percentages of the characteristics of the study population members were extracted, and the results were as shown in the following tables: the sample of the current study was (130) male and female employees from the industrial bank of iraq, and the following tables show 3.4results related to the study questions this chapter deals with a presentation of the results reached by the researchers through the response of the study sample members about the role of electronic accounting programs in strengthening the internal control system and its reflection on the quality of investment decisions, according to the study’s questions and hypotheses. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 119 www.americanjournal.org the first question: what is the level of activation of electronic accounting programs in the industrial bank of iraq ? to answer this question, the arithmetic means and standard deviations were calculated to activate the electronic accounting programs in the industrial bank of iraq, as they were as follows: table (3) arithmetic means and standard deviations for activating electronic accounting programs in the industrial bank of iraq arranged in descending order according to their arithmetic averages rank the number the dimension sma standard deviation the level 1 1 individualsworking 4.18 .443 high 2 5 reliability 3.87 .448 high 3 4 convenience 3.82 .475 high 4 3 database 3.46 .862 middle 5 2 software 3.30 1,171 middle electronic accounting software 3.73 .335 high table (3) shows that the arithmetic averages ranged between (3.30-4.18), where the working individuals came in the first rank with the highest arithmetic mean of (4.18), while the software came in the last rank with the arithmetic mean of (3.30). electronic accounting programs as a whole (3.73 ( second question : what is the level of quality of investment decisions in the industrial bank of iraq ? to answer this question, the arithmetic means and standard deviations were calculated for the quality of investment decisions in the industrial bank of iraq, as they were as follows: table (5)arithmetic means and standard deviations of the quality of investment decisions in the industrial bank of iraq arranged in descending order according to their arithmetic means rank the number paragraphs sma standard deviation the level 1 17 the investment decision includes allocating some of the economic resources currently available in order to create new .productive capacities 4.18 .684 high 2 26 the data and inputs in the industrial rank of iraq are a basic pillar for the validity of the results in order to obtain them in and accurate and reliable manner . 4.17 .695 high 3 22 market analysis and forecasting the industrial volume of revenues in the according to measuring the , bank of iraq gap between supply and demand in the market, are among the factors .influencing investment decisions 4.03 .609 high american journal of business management, economics and banking volume 14 july, 2023 p a g e | 120 www.americanjournal.org rank the number paragraphs sma standard deviation the level 4 31 investment decisions in the industrial bank of iraq are always linked to the long term . 4.01 .821 high 4 33 the senior management of the industrial making-the decisionbank of iraq takes process . 4.01 .832 high 6 16 industrial investment decisions in the .significant funding bank of iraq need 3.91 .698 high 7 20 looking for industrial bank of iraq is ,sources of financing, such as borrowing issuing bonds, or issuing shares for .public subscription to increase its capital 3.89 .707 high 7 21 lead to bearing the investment decisions in the event of industrial bank of iraq the expansion or replacement with fixed costs that result in raising the break-even volume to a level higher than the usual .level for a long period of time 3.89 .714 high 7 27 bank of iraqindustrial takes investment decisions that entail investing funds in establishing investment projects that generate new productive energies . 3.89 .795 high 7 29 bank of iraqindustrial takes investment decisions that entail the replacement and renewal of current assets in order to maintain or increase current production capacities . 3.89 1,029 high 11 19 the investment decision-making industrial bank of determines part of the for its purchase of assets for iraq's money .long periods of time 3.87 .719 high 11 23 identifies sources industrial bank of iraq for the purchase of production components and productive assets .)locally and internationally( 3.87 .893 high 11 24 bank of iraqindustrial usually include the elements of risk and uncertainty because these decisions are linked to the future, and therefore the expected return is uncertain . 3.87 .864 high 14 25 the risks of the investment decision lie in the difficulty of returning it without achieving gains for the bank ofindustrial 3.83 .376 high american journal of business management, economics and banking volume 14 july, 2023 p a g e | 121 www.americanjournal.org rank the number paragraphs sma standard deviation the level iraq .this does not mean that the loss is possible, the return is low. 15 30 from the investor's point of view , electronic accounting programs lead to an increase in the net return on investments . 3.75 .932 high 16 32 the investment decision in the industrial bank of iraq is affected by its infrastructure . 3.67 .472 middle 17 34 making process is based on-the decision an integrated base that includes electronic accounting programs . 3.62 1,216 middle 18 28 bank of iraqindustrial takes important investment decisions to invest money in , which helps it expand projects and generate high production capacity for the project . 3.55 .499 middle 19 18 a return industrial bank of iraq obtains from investment decisions that extends over a long period of time. 3.53 .501 middle quality of investment decisions 3.86 .597 high table (5) shows that the arithmetic averages ranged between (3.53-4.18), where paragraph no. (17) which states “the investment decision includes allocating a measure of the economic resources currently available with the aim of creating new productive capacities” came in the first place with an average my account amounted to (4.18), and paragraph no. (18) came, which states: "the industrial bank of iraq obtains a return that extends over a long period of time from investment decisions." in the last place, with an arithmetic mean of (3.53), and the arithmetic mean of the quality of investment decisions as a whole was (3.86 .) the researcher explains this by the fact that the industrial bank of iraq should encourage financial investment through the development of skills, and accelerate the pace of investment and productivity growth, and thus translate these gains into higher income and job creation, taking into account technological change by preparing workers for alternative employment, and increasing recognition of the importance of synchronizing national policies to develop skills with policies related to technology, trade and the environment. the third question : what is the level of internal control system in the industrial bank of iraq ? to answer this question, the arithmetic means and standard deviations were calculated for the internal control system in the industrial bank of iraq, as they were as follows : american journal of business management, economics and banking volume 14 july, 2023 p a g e | 122 www.americanjournal.org table (6) the arithmetic means and standard deviations of the internal control system in the industrial bank of iraq are arranged in descending order according to their arithmetic means rank numberthe the dimension sma standard deviation the level 1 5 monitoring and control 3.81 .445 high 2 2 oversight activities 3.80 .721 high 3 1 control environment 3.61 .846 middle 4 4 information and communication 3.58 .530 middle 5 3 assessmentrisk 3.48 .703 middle internal control system 3.65 .425 middle table (6) shows that the arithmetic averages ranged between (3.48-3.81), where the monitoring and control came first with the highest arithmetic mean of (3.81), while risk assessment came in the last rank with a mean of (3.48). the internal control system as a whole (3.65 .) testing the hypotheses of the study : the first main hypothesis: there is a significant effect of electronic accounting programs on the quality of the investment decision . the following sub-hypotheses are derived from this hypothesis : there is a significant effect of working individuals on the quality of the investment decision . there is a significant effect of the software on the quality of the investment decision . there is a significant effect of the database on the quality of the investment decision . there is a significant effect of appropriateness in the quality of the investment decision . there is a significant effect of reliability in the quality of the investment decision . schedule (12) summary of the results of the study hypotheses hypotheses the result the first main hypothesis : investmentthere is a significant effect of electronic accounting software on the quality of the decision . accept the hypothesis there is a significant effect of working individuals on the quality of the investment decision . accept the hypothesis decisionthere is a significant effect of the software on the quality of the investment . accept the hypothesis there is a significant effect of the database on the quality of the investment decision. accept the hypothesis there is a significant effect of appropriateness in the quality of the investment decision . accept the ishypothes there is a significant effect of reliability in the quality of the investment decision . accept the hypothesis the second main hypothesis : there is a significant effect of strengthening the internal control system in the relationship between electronic accounting programs and the quality of investment decisions . accept the hypothesis american journal of business management, economics and banking volume 14 july, 2023 p a g e | 123 www.americanjournal.org results the study concluded the following results : 1the study concluded that the number of males in the study is greater than the number of females, and the researcher attributes the high number of males compared to the number of females in the study community to the bank’s interest in attracting male employees, since the majority of the work required to be implemented is field and technical work and requires physical effort. 2the study found that the highest percentage of the distribution of the members of the study population according to the variable of practical experience for the category of 15less than 20 years, and the lowest percentage of the variable of practical experience for the category of less than 5 years, and this may be due to the bank's interest in preserving employees of the category young people who have gained experience for a long period of time, thus maximizing achievement rates in this category. 3 the results of the study showed that the level of electronic accounting programs in the industrial bank of iraq was high. the study differed with the study of (amanamah, alfred and kwaku, 2016) which showed that the level of electronic accounting software was low in small and medium enterprises in kumasi metropolis. 4 the results of the study showed that the level of quality of investment decisions was high. 5the results of the study showed that the level of the internal control system was medium, and this result agreed with the result of the study (lan, tang, 2020), which concluded that the level of the internal control system was average in computer companies. the study differed with the study of (napitupulu & all, 2016), which showed that the level of the internal control system was high. 6there is a significant effect of electronic accounting software on the quality of the investment decision, and this result agreed with the results of the study (nwaobia, et al.2013), whose results showed a statistically significant effect between the investors’ decision and the quality of financial reports in manufacturing companies listed in nigerian stock market . 7there is a significant effect of strengthening the internal control system in the relationship between electronic accounting software and the quality of investment decisions. electonic management. it also agreed with the study of badara, m. 2013), which concluded that an effective internal control system can affect the effectiveness of internal auditors at the local level. it also agreed with the study (al-samarrai, 2016), which showed that there is an impact of the internal control system on the quality of financial reports in the jordanian pharmaceutical companies listed on the amman stock exchange . recommendations based on the findings of the study, the researcher recommended the following: 1the necessity of disclosing the effectiveness of the internal control system and showing its strength and effectiveness to ensure the credibility of electronic accounting programs . 2the need to continuously update the programs used by specialists in the industrial bank of iraq . 3 the need to coordinate between electronic accounting programs and make periodic maintenance procedures for them . 4 the need for the availability of infrastructure in the industrial bank of iraq. american journal of business management, economics and banking volume 14 july, 2023 p a g e | 124 www.americanjournal.org sources and references: arabic sources : 1. al-ahmad, duraid and muhammad, ahmed, (2015), investment is a reading in the concept, patterns and determinants, dar amjad for publishing and distribution, amman, p. 10. 2. anis, kalinat mohamed, and omar, benia (2016), the risks of using electronic accounting information systems and their impact on the effectiveness of auditing in algeria, al-quds open journal for research and studies, baji mokhtar university, faculty of economics and management sciences, annaba, issue 40. 3. barhaili, dreams and ayash zubair, (2018), the impact of governance in activating the investment decision in capital markets, al-bashaer economic magazine, (4), 1, p. 237. 4. al-bashir, ben omar, (2017), the role of corporate governance in rationalizing financial decisions to improve the financial performance of the organization a case study of the saidal industrial complex in the time period 2008-2013, doctoral thesis in management sciences, specialization: corporate finance, university of ouargla . 5. boukrouma karima, and osmani hussein, (2019), the impact of financial leverage on investment decisions in industrial companies listed on the amman stock exchange, umm al-bouqi university, algeria, 510-491 6. bilal ayoub and bouchna shuaib, (2021), evaluation of the role of internal auditing in the internal control system, a case study of gulf bank, adrar agency, ahmed derayah adrar university, algeria, 5-61 7. bouakaz, samira, (2015), the contribution of the effectiveness of fiscal auditing in reducing tax evasion, mohamed khedr university, biskra . 8. boulakhras nusseibeh, (2018), the role of the internal control system in strengthening internal auditing, a case study of the bank of agriculture and rural development, the regional structure of permanent control umm el-bouaghi, a supplementary note within the requirements for obtaining an academic master's degree in management sciences, 109-2 . 9. al-trad, abha, (2018), the accounting information system and its role in the functioning of the economic enterprise, a master's note in facilitation sciences, constantine university, algeria, 72 . 10. thabet hassan thabet, (2016), al-ghari journal of economic and administrative sciences, volume thirteen, issue 46, p. 331 11. haddadi, abd al-latif, khair al-din, wasi, and omar, maluki (2018), making decisions based on electronic accounting, a study of a sample of accountants and accountants in the state of el-wadi, 9, 51-37. 12. hanini, marawan, and boumediene, abd al-rahman (2020), the role of evaluation criteria in investment decision-making, a case study of the national agency for youth support, ahmed derayah adrar university, faculty of economic, commercial and facilitation sciences, 6-73 13. jamam mahmoud and dabash amira (2017); the impact of accounting disclosure fairness in rationalizing investment decisions a case study of a sample of investors in the algiers stock exchange, studies and research in the arab journal of humanities and social sciences, no. 26 . 14. haddadi abd al-latif khair al-din and summer faiza omar malouki (2018), making decisions based on electronic accounting by external audit committees, a study of a sample of accountants and accountants in the state of el-oued, 51-36 . american journal of business management, economics and banking volume 14 july, 2023 p a g e | 125 www.americanjournal.org 15. hamidat, saleh, shuaib amman, jaber damesh, adel soleimani, and intisar, dahha (2022), the role of auditing in reducing fiscal risks, a memorandum for obtaining a master’s degree in commercial sciences, specializing in accounting and taxation, kasdi marabah university, ouargla, 24. 16. hussein eman ibrahim, (2018), auditing and controlling in accounting systems, university youth foundation, alexandria . 17. hussein, iman, and yasser, taj al-sir, muhammad sanad, hanan, hussein (2021), the role of the internal control system in securing electronic commerce operations, a field study on a sample of sudanese banks, omdurman islamic university, 197-229. 18. jibril, ahmed ibrahim, (2015), "the impact of electronic accounting information systems on audit performance", unpublished master's thesis, sudan university of science and technology, college of graduate studies. 19. khalaf abdullah wardat, (2017), internal audit guide according to international standards issued by, master thesis, department of accounting and finance, college of commerce, islamic university of gaza, al-warraq for publishing and distribution, first edition, 22. 20. khasheef, abdul amir, (2022), the role of electronic accounting in improving the quality of accounting education, warith al-anbiya university, college of administration and economics, karbala, iraq, 132-121 . 21. dridi, najib, younes zain, groni, rizk, zain, ismail, (2019) the reality and prospects of the electronic accounting information system in algeria, a case study of the algerian popular loan, wakalat al-wadi, the people’s democratic republic of algeria, university of martyr hama lakhdar in al-wadi, unpublished master’s thesis . 22. al-rubaie, hakim, mohsen, muhammad, and al-atwi, muhannad, (2018), market timing theory and its impact on the investment decision, an applied study of a sample of iraqi industrial companies, college of administration and economics / university of kufa, 105-83. unpublished ma, 17 -1. 23. rasha jihad younes sabah, (2021), the reality of the internal control system in the income tax departments and its impact on the income tax system achieving its objectives, an-najah national university, college of graduate studies, palestine, 92-1. 24. saini, hanan, shahhan, somaya (2019), the impact of capital cost on investment decisionmaking in the economic enterprise, (case study of the ibash public works corporation in adrar), ahmed daraya university, department of commercial sciences, 59-1 . 25. sufyan, boujemaa, fella, jaadi, and sawsan, ben senussi, (2017), evaluation of the internal control system in inventory management, a case study of the m'sila milk brood corporation . 26. al-sharida, nadia and al-samarrai, ammar (2021), the role of using automated accounting systems technology in enhancing the efficiency and effectiveness of the internal control system. an analytical study of a sample of employees working in accounting and auditing departments in bahraini universities. journal of accounting and financial studies. the second international and fourth national scientific conference pp. 120-155. 27. shehata, al-sayed, (2018), basics of control and internal auditing, university education house, alexandria 28. shuaib amman, jaber damesh, adel soleimani, intisar dahah, (2022), the role of internal auditing in improving the internal control system in the organization american journal of business management, economics and banking volume 14 july, 2023 p a g e | 126 www.americanjournal.org 29. cheng, m., dhaliwal, d., & zhang, y, (2018), does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting?. journal of accounting and economics, 56(1), 1-18. 30. chen, i. j., & chen, s. s, (2017), corporate governance and the investment efficiency of diversified corporate asset buyers. journal of applied corporate finance, 29(1), 99-114. 31. -eisdorferassaf , carmelo giaccotto, reilly white ,(2018) ,capital structure, executive compensation, and investment efficiency, journal of banking & finance 32. gao, r., & yu, x. (2018). how to measure capital investment efficiency: a literature synthesis. accounting & finance. online version of record before inclusion in an issue. 33. garcía‐sánchez, i. m., & garcía‐meca, e. (2018). do talented managers invest more efficiently? the moderating role of corporate governance mechanisms. corporate governance: an international review, 26(4), 238254. 34. gan, h, (2015), ceo managerial ability, corporate investment quality, and the value of cash. phd thesis, virginia commonwealth university 35. horngren, charles, t. g. l.sundem & william, o. stratton, (2018). introduction to management accounting. eleventh edition prentice hall international . 36. houcine, a. (2017). the effect of financial reporting quality on corporate investment efficiency: evidence from the tunisian stock market. research in international business and finance, 42, 321337. 37. jin, x., & yu, j. (2018). government governance, executive networks and corporate investment efficiency. china finance review international, 8(2), 122-139. 38. khurana, i. k., moser, w. j., & raman, k. k. (2018). tax avoidance, managerial ability, and investment efficiency. abacus, 54(4), 547-575. 39. lei, q., & chen, h, (2019), corporate governance boundary, debt constraint, and investment efficiency. emerging markets finance and trade, 55(5), 1091-1108 40. lara, j. m. g., osma, b. g., & penalva, f, (2016), accounting conservatism and firm investment efficiency. journal of accounting and economics, 61(1), 221-238. 41. masselin jean luc &maders henri-pierre,(2014), contrôle interne des risque : cibler – évaluer organiser – piloter – maitriser, 2éd, éditions eyrolles, paris,p105-106. 42. selmer caroline, )2014(,la boite à outils du contrôle de gestion, édition dunod, paris, , p166. 43. walter jacques,(2014), le contrôle interne pour tous, les cahiers de 44. l’entreprise ,éditions afnor ,p12. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 70 www.americanjournal.org encouraging students to be more interested and hardworking by using natural products in the technology class mustayeva gulnora musurmongulovna is a technology teacher at the 7th general secondary school of boyovut district, sirdarya region tel. 99 471 55 09 a b s t r a c t k e y w o r d s in today's fast-paced technological era, it is imperative to foster students' interest and encourage their hard work in technology education to prepare them for future challenges. this scientific article explores the potential of utilizing natural products in technology classrooms as a means of stimulating student engagement, enhancing learning outcomes, and promoting sustainable practices. by integrating principles of environmental consciousness and hands-on learning, educators can cultivate a deep sense of curiosity, creativity, and perseverance among students. introduction technology education plays a pivotal role in equipping students with the necessary skills and knowledge to thrive in an ever-evolving world. however, engaging students and motivating them to work diligently in this field can be a challenge. this article seeks to explore how incorporating natural products into the technology classroom can enhance students' interest and encourage their hard work. by connecting their curriculum to the natural world, educators can create an environment that fosters a deeper understanding of sustainable practices and stimulates students' curiosity. one way to incorporate natural products into the technology classroom is by using biodegradable materials in projects. instead of using traditional materials such as plastic or metal, educators can introduce students to alternatives like bamboo, cork, or plant-based plastics. this not only introduces students to sustainable materials but also encourages them to consider the environmental impact of their creations. additionally, educators can focus on the use of renewable energy sources in technology projects. students can learn about solar panels, wind turbines, or hydroelectric generators and how these sources can be utilized to power their creations. by integrating renewable energy concepts into their projects, students gain a better understanding of the importance of sustainable energy and its role in technology. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 71 www.americanjournal.org another way to incorporate natural products is by exploring biomimicry – the practice of designing materials and systems inspired by nature. by studying and replicating the structures and mechanisms found in the natural world, students can create innovative solutions to technological challenges. this approach not only sparks creativity but also encourages students to appreciate and protect the environment. moreover, educators can organize field trips or invite guest speakers who specialize in sustainable technology or natural product development. these interactions expose students to real-world applications of natural products and technologies, allowing them to see the practical implications of their studies. these experiences can inspire students to pursue careers in sustainable technology or to consider the environmental impact in their future projects. lastly, educators can incorporate hands-on activities, such as gardening or composting, into the technology classroom. these activities provide opportunities for students to connect with nature firsthand while learning about sustainable practices. students can witness the cycle of growth and decay, helping them understand the importance of reducing waste and protecting the environment. 1. enhancing student interest: integrating natural products in technology education promotes a multi-disciplinary approach, allowing students to explore the integration of nature and technology. by incorporating real-world examples of technologies inspired by natural systems, such as biomimicry, students can witness how technology can be intertwined with the natural world. this integration encourages a deeper understanding and amplifies students' interest in the subject matter, motivating them to explore further. 2. hands-on learning experiences: incorporating natural products in the technology classroom provides students with concrete, handson experiences, which help consolidate their theoretical knowledge. utilizing materials like wood, stone, and bamboo in design projects fosters a tangible connection between students and the natural environment. this connection enhances their understanding of the life cycle of products, the importance of sustainable sourcing, and the need for responsible consumption. 3. promoting sustainable practices: by utilizing natural products, technology educators have an opportunity to instill sustainability concepts into students' mindsets. teaching the environmental impact of synthetic materials compared to those derived from nature helps students develop a conscious approach to technological innovation. educators can foster discussions on sustainability, life-cycle analysis, and eco-friendly solutions, cultivating an ethos of responsible innovation and design. 4. cultivating creativity and problem-solving skills: integrating natural products in technology classrooms encourages students to think outside the box. natural materials often exhibit unique properties that can inspire innovative solutions. by involving students in design processes that utilize these materials, educators empower them to explore unconventional ways of problem-solving, enhance their creativity, and develop critical thinking skills. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 72 www.americanjournal.org 5. stimulating collaboration and teamwork: utilizing natural products in technology education encourages collaborative learning experiences. designing and creating with these materials often necessitates teamwork and cooperation, as students must navigate challenges and find solutions together. this fosters essential communication, negotiation, and leadership skills, traits that are imperative not only in technology fields but also in various aspects of life. conclusion: by incorporating natural products into technology classrooms, educators can effectively enhance student interest, encouraging hard work and promoting sustainable practices. the integration of nature and technology provides students with a holistic perspective, nurturing their curiosity and fostering a deep understanding of the interconnectedness between the natural and technological world. by embracing the principles of environmental consciousness and hands-on learning with natural materials, educators empower students to become responsible innovators, capable of addressing future challenges sustainably. in conclusion, incorporating natural products into the technology classroom can enhance students' interest and motivation in the field. by connecting their curriculum to the natural world, educators can promote sustainable practices and stimulate students' curiosity. through the use of biodegradable materials, renewable energy concepts, biomimicry, interactive experiences, and hands-on activities, students can develop a deeper understanding of the importance of natural products in technology and their role in creating a more sustainable future. references: 1. абдуллаева, шоира х. и др. "психолог по профессиональной коммуникативной компетентности". тезисы spast 2.02 (2023). 2. уришов, шакир. "проектирование педагогических предметов. a dynamic approach to teaching methodology." академические исследования в современной науке 2.22 (2023): 48-51. 3. urishov, shakir mamatalievich. "biblical guidelines for educational systems." the peerian journal 23 (2023): 15-17. 4. urishov, shakir. "improving the technology of organizing independent education of students through pedagogical facilitation." академические исследования в современной науке 2.22 (2023): 52-54. 5. urishov, shakir. "using innovative technologies in teaching latin and medical terminology." академические исследования в современной науке 2.22 (2023): 41-43. 6. urishov, shakir. "effectiveness of educational methods and tools in the lesson." академические исследования в современной науке 2.22 (2023): 44-47. 7. urishov, shakir mamatalievich. "the role of modern pedagogical technologies in the development of the science of pedagogy." journal of pedagogical inventions and practices 25 (2023): 15-17. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 60 www.americanjournal.org characteristics and challenges of the iraqi economy after 2003 prof. dr. younes boujelbene tunisian republic /university of sfax faculty of economic sciences and management/department of economics younes.boujelbene@gmail.com elham khudhair abbas shubbar the republic of iraq / researcher elhamabbas7@gmail.com a b s t r a c t k e y w o r d s the aim of this study is to define the characteristics of the iraqi economy that required it for a long time. the country suffered from various and successive crises until after 2003 and the subsequent years, the most important of which is the unilateralism of the economy and its dependence on oil as the sole source of its revenue and income, which constituted 90% of the total revenues and neglected the rest. the basic economic sectors such as agriculture and industry weakened their contributions to the gross domestic product and caused many institutional, economic, social and environmental challenges that impeded the development process and weakened the productive capabilities of the iraqi economy and the diversification of its resources, we recommend adopting a serious and integrated government reform program that will help alleviate some of the problems and challenges. characteristics of the iraqi economy, economic and social challenges, institutional and environmental challenges. introduction iraq witnessed long wars during the period 1980-2003 and lived a harsh economic blockade, so its development process declined affected by those conditions and economic policies that were adopted away from the principle of development differentiation in support of war efforts and the sustainability of the elements of confronting the blockade, which limited the positive development effects achieved for the seventies and the negatives of the subsequent period, the result was the survival of the iraqi economy revolves in a vicious circle that cannot be exited except with a shock that rebuilds it again and that shock came with regime change in 2003, but the case of instability in the economic, political, social, security, health and environmental conditions threatened and still threatens the development efforts that are being made in order to overcome difficulties and overcome challenges and here lies the importance of the research as it deals with the most important features inherent to the iraqi economy that reflect the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 61 www.americanjournal.org economic, political, social and environmental reality with the most important challenges suffered by the iraqi economy after 2003. methodological framework of the study: first: the problem of study: the problem is determined that the renter of the iraqi economy has become an inherent feature of it in addition to the structural imbalances in its economic structure weakened its ability to develop economic sectors and diversify its resources and sources of income. second: the objective of study: determined by two main objectives: 1identify the most important features that accompany the iraqi economy for long periods. 2study and analyze the most important challenges facing the iraqi economy at the social, economic, institutional and environmental levels third: the hypothesis of study : the characteristics of the iraqi economy and the continuation of the rents of the economy deepen the structural imbalances in it and increase the challenges facing the development process in iraq, especially after 2003. fourth: research methodology: we adopted the descriptive and analytical approach to achieve the objectives of the research and test its hypothesis. the first topic: the nature and features of the iraqi economy: during long periods of time, the iraqi economy suffered from structural imbalances in its economic structure. because of the remnants of the wars and economic sanctions that he went through until april 2003 and the resulting economic chaos, which led to the weakening of the ability of the sectors of the national economy to intertwine between them,)1( the dependence of the iraqi economy on oil has historical roots and dates back to the end of the fifties, in that period iraq was a predominantly agricultural country and that about 50% of the population was endemic in the countryside and agricultural activity and absorbs nearly half of the labor force and agricultural production fills local consumption to a large extent as well as the export of some agricultural products and livestock products, but the backwardness of agricultural production technology and poor organization institutionally and because of the escalating migration, from the countryside to the cities and to the regions nearby urban and large migrations to the capital, baghdad, led to the deterioration of this activity and a decrease in its contribution to the gross domestic product, and in return the importance of public and personal service activities rose and the state agencies expanded, after the government became dependent in its escalating budget on the revenues of oil export rents and no longer depends on the collection of taxes from the population, as the service and production activities of a predominant consumer nature grew, in addition to housing and urban activities, at the expense of the growth of non-oil export industries, and thus the renter nature of the iraqi economy )2( after the opening of the iraqi economy and following the end of the economic blockade after 2003, and the unstable political and security factors that have gradually escalated in causing imbalance in the structure of the output, through the decline in the performance of the economic sectors due to the neglect and marginalization suffered for a long period of time, and the state's attempts to support it were weak, which led to making the supply aggregate does not keep pace with the surplus of aggregate demand, (1mosaab abdel-aali thamer hussein, “. the development of the iraqi economy between fluctuations in oil revenues and diversification of income sources for the period 2003-2015 »(unpublished master's thesis in economic sciences, college of administration and economics, al-qadisiyah university, iraq 2017, p. 59 (2al-adad, kamel, (the structure of the iraqi economy and the rentier issue: obstacles to achieving sustainable development, 2015, p. 7.) iraqi economists network website http://iraqieconomists.net/ar/ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 62 www.americanjournal.org forcing the state to adopt the import method in order to feed that growing demand, which in turn restricted all initiatives and endeavors aimed at reviving the iraqi economy. this is why the state, in order to maintain the continuity of the public sector, remains completely dependent on the oil sector, as the only source of financial resources for the state, and therefore it is natural that the imbalance in the production structure continues.)3( the most important features of the iraqi economy: the study of the reality of the iraqi economy requires addressing the most important features that characterize the following agencies: first: unilateralism of the economy and the imbalance of the structure of public spending the iraqi economy is characterized by its dependence on the outside and what is reinforced by its dependence on one commodity in enhancing its national income, oil is the main source of public revenues in iraq, and the basis for financing the development process in iraq, which weakened the role and importance of other sources of financing, especially taxes, and that the reason for the continued dominance of oil revenues as the only almost sole source of financing for development is due to the inability of sectorial development policies to generate an economic surplus that contributes effectively to the financing process. )4 (. the iraqi oil industry is characterized by the large reserves, the proximity of the oil resource to the surface of the earth and the cost of producing a barrel with the absence of risks resulting from the discovery of oil, and these characteristics are attractive factors for oil companies in the field of spending on the development of oil industries. the oil rents in iraq are linked to the nature of the state and how to use it, and it can be said that the problem of development does not lie in the financial resources derived from the export of oil, but in the use )5( ,the general budget distributes its financial allocations irrationally, as the operational expenses acquire a large area of these allocations at a time when it requires the disposal of oil revenues in investment areas that enhance the requirements of development, on the other hand that the oil resource is depleted and unreliable permanently linking the fate of the economy to the changes that occur in it, and this is what we noticed with the first global oil prices in 2014 and its impact on the state budget. therefore, it is necessary to take the necessary measures to develop other economic sectors, diversify sources of national income and increase sectoral interdependence to achieve comprehensive development. second: the imbalance of the investment sector because the volume of capital investments should work to achieve the objectives set for investment policy and infrastructure development, and the nature of the economic vision and its orientations towards market policy and production and giving the private sector a leading role in economic activity and the availability of a security and legislative climate appropriate for investment was not at the level that makes the investment sector the real tool to increase gdp rates and contribute to addressing unemployment6)) 3-mustafa kamel, amer sami,. . harmonizing employment and diversifying sources of domestic product. a vision for reforming the iraqi economy after 2003. the eighth international scientific conference under the slogan (academic visions for economic, financial, and administrative reform in iraq. university of karbala, 2016, pp. 30-31). -4 the national development plan 2010-2014, previous source. p. 22-p. 23. 5 .muhammad medhat al-quraishi economic development wael publishing house amman 2007, p. 151. 6 world bank " syrian investment climate assessment : un locking the potential of privat sector washington 2005, p. 11 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 63 www.americanjournal.org creating a safe environment in iraq requires important investments and infrastructure )7(that encourage attracting foreign investments, and we believe that the matter is facing difficulty due to the rampant administrative and financial corruption in state institutions and investment projects, which is draining many of the financial resources allocated to them. the foregoing indicates that capital accumulation is a process that was achieved according to the method of accumulating oil transfers to the economic sectors in the form of fixed assets, and the case continued to do so without enhancing the accumulation of capital through technological progress and upgrading productivity rates, which emptied the growth rates achieved in gdp and capital accumulation of their real content and made them not expressive of real and sustainable development, so they were subject to collapse for any economic or non-economic crisis )8(. although all the comprehensive national strategic plans included local investment projects and part of which external funding is adopted (the national plan 2007-2010, 2010-2014, 2013-2017 and even 20182022), but the terms of these plans have not been taken on the shoulders of the state to fully implement, as the effects of the projects proposed to be implemented in those periods of the plans still fall within the lagging projects despite the disbursement of their financial allocations investment is linked to a number of conditions, the most important of which is political stability and the legislative and legal structure that is reflected in the economic reality, in addition to the availability of the qualified labor market, noting that investments it will not be positive in many times, especially those that are implemented at inappropriate times, there are projects that practically spend a lot of money without having a positive return to serve the community, and if this money is employed in other sectors (industrial and agricultural sector) to provide great productive job opportunities perhaps the statistics provided by the regulatory authorities and integrity bodies reveal to us a lot of projects allocated funds for the purpose of investment, but they fall within the list of lagging and fictitious projects, which reveals at the same time the size of corruption in the investment sector. third: deterioration of the services sector: iraq is one of the countries rich in oil resources, but it suffers from a lack of basic services such as electricity, potable water, sanitation services, health services... although there was a slight improvement after 2003 in the operation of service facilities and communications, etc., but it soon declined in 2006, where the continuous power outages and the scarcity of clear water negatively affected all aspects of life, and within the framework of the efforts made and calling for improving the service reality, the state sought a number of measures with the aim of developing the economy and services in the field of (building the electricity network and increasing the generation capacity, rehabilitation of water pumping stations and the completion of continuous maintenance of irrigation and drainage channels and attention to sewage services, strengthen has a transportation and communication network in all governorates. developing the education sector through the modernization of educational systems, developing the capabilities of teachers, rebuilding schools and universities and providing them with modern technologies. developing the health sector, providing pharmaceutical and medical equipment and rehabilitating hospitals. )9( 7 . muhammad abdel saleh, college of business economics/al-nahrain university, the iraqi economy between reality and the challenges of the current stage, 2018, pp. 5 and 6. 8 . national development plan 2010-2014, previous source. p. 22 9 ministry of planning and development cooperation national development strategy (2005-2007) for the year 2008, p. 3: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 64 www.americanjournal.org but these measures did not find a way to implement due to the deterioration of the security situation, political instability and health crises, especially the corona pandemic and its negative repercussions on all details of life locally and globally and its reflection on the economic situation, which increased the suffering of the population due to the further deterioration in the quality of drinking water and the spread of diseases and epidemics, as well as the deterioration in sewage networks in all governorates of iraq, especially the capital, baghdad. the deterioration in electrical energy continued in baghdad and all provinces, and this deterioration is attributed to the continuous sabotage of electrical networks, looting and looting operations that affected economic facilities, the deterioration of the security situation and the lack of coordination between the ministries of electricity on the operations of equipping electric power stations with fuel and oil derivatives needed by the electricity sector. in addition to the age of most of the electrical stations and their lack of continuous maintenance, these obstacles witnessed by the service sector made the iraqi citizen bear the costs of most of these services and his dependence on the processing of electricity from private generators and his access to medical services through private hospitals due to the citizen's lack of confidence in the services provided by government hospitals, as well as the installation of pumps by citizens to filter drinking water in homes due to the pollution of drinking water equipped for homes, in addition to the citizen's lack of drainage services and public entertainment places such as parks and parks ... etc. the deterioration of the service reality and the inability of the state to improve it is evidence of the weakness of the state's capabilities, which is considered the goal and means of development it remains far from achieving sustainable development measures to improve the quality of life, and this is negatively reflected in the development of the economic sector with all its indicators. fourth: trade sector and trade balance: the trade sector contributes to the overall development process due to its role at the internal and external levels, as foreign currency reserves often come through the export of goods abroad, while the exchange of local goods and services and their delivery to the consumer is through internal trade, and due to the political conditions witnessed by iraq, the role of internal trade may have been more important, especially in the period of the economic blockade in the nineties and the accompanying disruption and destruction of many production and service facilities and increased self-reliance after iraq was prevented from exporting its goods abroad due to the economic sanctions imposed on it by the security council, which made the deficit in the balance of payments a reality of the iraqi economy ) 10( now the trade balance has limited its role to reducing the deficit in the balance of payments due to its dependence on oil exports, and this situation necessitates the government to adopt an economic policy that improves the situation of other productive sectors (such as agriculture, industry) and work to develop them and increase its contribution to the domestic product, considering that the oil resource is subject to external variables, and this puts the country's revenues from foreign currencies obtained from the sale of oil under the threat of these variables, and perhaps the decline in global oil prices in 2014 and beyond. this fact was clearly revealed, as the deficit in the iraqi balance of payments reached high percentages as a result of this decline in light of the ineffectiveness of other sectors and their low contribution to improving the trade balance. as we will see later. 10. abdul ali al-mamouri: the iraqi economy the dialectic of reality and the algebra of the outside iraqi research journal first issue 2007, pg. 71 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 65 www.americanjournal.org fifth: schizophrenia, inconsistency and harmony (qualities) features of the branches of economic policy when applied, specifically the financial and monetary policies, which exacerbated the severity of the crises to which the iraqi economy was exposed, such as unemployment, inflation and the spread of the phenomenon of administrative corruption. the second topic: economic and social challenges the comprehensive national development plan (2018-2022) referred to a number of challenges that reflect the economic and social reality in iraq as follows: )11(: first: economic challenges: 1the deterioration of the investment climate: the continued deterioration of the investment climate affected by the package of political, economic, institutional, legislative, legal and regulatory factors, whose typology had a role in influencing the level of foreign investments and the ability to attract them, in terms of some international indicators such as the ease of doing business index, in which the ranking of iraq appeared (165 out of a total of 190 countries for 2016), while the general index of investment attractiveness showed that iraq was one of the performing countries weak, which reached (27.3) degrees out of 100 degrees in 2016. 2imbalance of production structure: the oil sector is still the dominant sector of gdp and indicators confirm the inability of the iraqi economy to get rid of the rentier problem that has haunted him during the past decades, oil revenues accounted for 95% of the total annual revenues, increasing from 51.26% in 2010 to 55% in 2015 as a result of the faltering economic policy required to diversify the economy. while the contribution of the agricultural sector in generating gdp decreased from 4.17% in 2010 to 2.02% in 2015, the contribution of the manufacturing sector decreased from 2.1% in 2010 to 0.8% in 2015. 3trade imbalance: the lack of a trade policy that takes into account the necessity of meeting the economic conditions required to maintain international competitiveness, the growing imbalance in the structure of the domestic product, and the decline in the exchange rate of the iraqi dinar, led to a clear imbalance in the trade balance in terms of the high proportion of oil exports to 99% of the total iraqi exports, with a stark diversity in the structure of imports and great economic openness, the ratio of foreign trade to gdp was 50.25% in 2015. 4imbalance in the structure of the general budget: oil revenues continue to occupy the first place in the scale of general budget revenues, which constituted (85.9%) of the total estimated revenues for 2017 amounting to (79.11) trillion dinars, which made the general budget responsive to external shocks represented by oil price fluctuations, internal imbalances represented by the lack of diversity of non-oil revenues, and the high percentage of estimated operating expenses of (75,217) trillion dinars. which constituted 47.7% of the total estimated budget, making the planned deficit of the general budget 21.6 trillion dinars in the 2017 budget. 5high public debt: the widespread dependence on internal and external public debt to cover the public budget deficit has become a constraint on development rather than an alternative opportunity to finance it from non-oil sources. this debt also constitutes a burden on current and future generations in light of the lack of coherent and harmonious macroeconomic policies that invest it efficiently, as the planned deficit constituted 21.6% of the estimated general budget, and was financed through internal and external loans. thus, the public debt became (135851) billion dinars as at 31/12/2017. 11) ministry of planning and development cooperation. comprehensive national development plan (2018-2022) american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 66 www.americanjournal.org 6backwardness of the banking system: the obsolescence of the technologies currently used, the stereotype of management methods, the sagging of the administrative staff who are skillfully responsive to modern technological changes, and the absence of an appropriate environment to deal with customers, the weak marketing of non-traditional banking products has made the banking and administrative systems in which banks operate unable to keep pace with modern banking systems in terms of some indicators, such as the high value of doubtful debts, which reach approximately (7, 3079) billion dinars in 2015, which constituted a burden on financial stability, as the rate of credit defaults of government banks reached 67.1%. 7the expansion of the informal sector: the weakness of private investment resulting from the deterioration of the investment climate has led to the expansion of small economic activities that are not subject to government control and operate outside the tax and insurance framework of the state, which are not included in the calculations of the gross national product, and at the expense of the activities of the organized economy, which constitutes outputs, behaviors and transactions that cannot be controlled and controlled at the economic and societal levels. 8limited role of the private sector: the deterioration of the work and investment environment and the continued adoption or ignoring of the policy of commodity dumping and the neutralization of participation in the formulation and implementation of economic policy objectives, has led to the continued limited role of the private sector in the development process, as its contribution to the generation of gdp did not exceed 44.6% in 2015 (at current prices, and its contribution to the formation of fixed capital did not exceed (35%) in 2015 at constant prices. second: social challenges: 1development indicators reflect the state of human development in iraq (health, education, living ..) as the world human development index 2016 shows that iraq's ranking falls within the category of medium human development countries (sequence 121) among the world's 188 countries. 2the dominance of sub-loyalties, the weakness of the rule of law and access to justice, generated a structural deficit, a continuous reproduction of problems, a lack of societal will and tools to enable it, and expanded the area of fragmentation and disruption of the societal fabric, which led to the depletion of the elements of development and its sustainability. 3the high levels of multidimensional poverty, resulting from successive crises and armed conflicts and the accompanying terrorism, violence and population displacement that have destabilized the elements of human security and societal stability. 4-the weakness and disintegration of social policies has led to the multiplication and exacerbation of the social costs of crises, which threatens the quality of life and the well-being of society. 5the large crises to which society was exposed and the weakness of protective policies contributed to increasing the area of vulnerable groups of the population (the disabled, the elderly, widows, orphans, so that the fragility rate exceeded 50% in 2016. 6the gender gap continues to undermine the foundations of the development structure due to the traditional stereotypes defining women's roles and influenced by the dominance of the patriarchal culture rooted in the depth of the social structure. this has been reflected in the weak participation of women in economic, social and political activities and the limited occupancy of leadership roles in legislative and political institutions. 7the continued inability of the state and society to absorb young people, supervise them in public life, and provide them with decent job opportunities, which threatens the pillars of stability and social american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 67 www.americanjournal.org security, and pushes some of them to migrate outside the borders. the unemployment rate for individuals aged 15 years and over was 8.10% 5.11% in urban areas compared to 8.8% in rural areas, while the percentage of underemployment less than 35 hours worked per week was 2.28%. 8the submission of large areas of iraq to the control of the terrorist daesh for a period of nearly three years, and the expansion of incubators of extremism, terrorism and violence resulting from the conditions of occupation, socialization processes and school programs to which the children and youth of those areas underwent, will leave deep psychological and social effects that undermine the unity and cohesion of the social fabric. 9-the indicators of education at all levels have not witnessed qualitative progress, geographical spread, and coverage of its infrastructure, with the continued high levels of illiteracy, dropout and gender gap, which threatens the educational construction system and hinders its keeping pace with the emerging international changes in the fields of knowledge. 10the continued decline in the level of health services and their weak spread, and their inability to meet the real needs of the population, with the high migration of medical competencies abroad, led to an imbalance in the percentage in the indicators (doctor / population). in addition to the repercussions of the corona pandemic at the end of 2019 until the beginning of 2021, which has wide effects on all fields in the joints of life globally and locally, which increased the challenges of the health sector in the face of the health disaster in iraq. third theme: institutional and environmental challenges: first: institutional challenges: 1low efficiency of institutional performance: continued failure to subject government administration to the logic of sound economic calculation and the principles of efficient management of public resources within a holistic framework. this failure deepens in light of the continued disconnect between government investment programs and state budget allocations, as well as the failure to put public finances and their monetary contents in a broader macro framework and across distant time horizons, with weak interest in the economic administration in diversifying the productive structure of the iraqi economy. 2the inflation of the administrative apparatus and the low productivity of the workforce: the expansion of the administrative and governmental apparatus and the low efficiency of its performance, and its unjustified extravagance in wasting resources, and its service to personal and factional interests, and its complicity with the values of its content that the state is a personal right for its employees and falls on it from the system of incentives granted from the duty to take care of its employees and not to prejudice their privileges as part of it has contributed to the delay in rebuilding and restructuring government agencies within the administrative reform program and on the basis of cost reduction while ensuring efficiency and good management of resources. -3. financial and administrative corruption: the deepening of the phenomenon of corruption and its transition from a behavioral phenomenon associated with certain groups to an integrated and interconnected institutional structure that has taken root to serve interests that hinder the development process, and corruption has turned into a source of depletion and waste of income and output and leaked out of the economic system and in terms of the public money index, and its deduction of the governance part of transparency international iraq has become among the top ten most corrupt countries in the world year 2015. iraq still occupies a lagging position in the corruption index issued by transparency american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 68 www.americanjournal.org international, as it ranked (162) out of (180) countries in the corruption perceptions index for the year 2019. )12( second: environmental challenges 1 environmental pollution iraq falls within the circle of 1 environmental pollution iraq is located within the circle of negative relationship between the environment and conflicts, a dual relationship that led to environmental pollution and serious damage that generated repercussions on the economy, society and the individual, which is known as the inherent results in terms of international standards. iraq ranked according to the environmental performance efficiency criterion 116 out of a total of 180 countries. 2random expansion in urbanization the weak effectiveness of urban planning and the absence of a national housing policy responsive to the reality of the situation in managing the risks resulting from crises and conflicts. with the increasing rates of poverty, the scope of housing slums in iraq has expanded and extended to reach 8% of the total population living in informal housing and 7% of the total housing, where the number of random housing units is (347,000) housing, which explains the reasons for the exacerbation and repercussions of the absence of urban planning. 3non-integrated environmental management and deficiencies in environmental legislation the ineffectiveness of environmental management in containing the causes and effects resulting from pollution, wars and conflicts, not to mention a clear deficiency in environmental legislation, which led to a weakness in national reactions at the level of policies, objectives and intervention options towards these problems, as well as the selectivity of some options in administrative, legislative and executive coverage, which reduced the chances of achieving progress made. 4desertification: the exacerbation of the phenomenon of land desertification and salinization under hot and dry climatic conditions, as well as the hydrological and topographical aspects of the soil, as well as human activities (cultivation and irrigation procedures), which led to the exacerbation of the problem and the expansion of the area of its repercussions and to the emergence of other types of desertification, loss of vegetation cover, and hindering the development of agriculture (especially in central and southern iraq), as the area of desert land (50% of the area of iraq), which poses a serious threat. for its food security. 5climate change iraq, along with the rest of the arab countries, will be at the heart of the major climate problem facing the world, which is the threats of global warming and the risks of rising temperatures by 2050, causing a shortage of rain and the spread of drought and drought, which threatens food security, social stability, water resources, agriculture, health and biodiversity. 6on non-renewable energy, not relying on the option of introducing alternative or renewable energy in the policy priorities and goals to replace non-renewable energy contributed to the fall of the environmental impact on the life of oil reserves, and the increase in environmental pollution rates resulting from the increasing rates of fossil fuel consumption. thus, the factors contributing to the emergence of global warming and pollution of the life environment were activated, and their negative repercussions on health and food and then on human security. conclusion 12( corruption perceptions report 2019, transparency international on the website: https://www.transparency.org/en/cpi/2019/results american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 69 www.americanjournal.org the iraqi economy was characterized by characteristics of the period after the year 2003, and the subsequent period caused a large amount of imbalance in the overall economic balance, which was reflected in the form of clear structural imbalances, a decline in the gross domestic product in general and oil in particular, a high percentage of the contribution of oil production to the gross domestic product, and a decline in the percentage of the contribution of economic sectors. others (such as agriculture, industry, etc.) as a reflection of the unilateralism of the economy, in addition to many other features, and because the rentier economy is considered a major cause of economic backwardness and economic crises that afflict the state because it depends for its national income on a single source, and any defect that afflicts this source causes economic crises and losses for the state that relies on it. the health crisis is like a pandemic. corona and the decline in oil prices in global markets cause a lack of financial returns and thus an increase in the percentage of the financial deficit in the federal budget and its negative effects on the economy and society, such as underdeveloped infrastructure, inflation, external debt, a high rate of unemployment, poverty, deprivation, rampant financial and administrative corruption, and other ongoing crises and challenges that are exhausting the country. economically, socially, institutionally and environmentally, the researcher recommends: 1reconsidering economic policy through an integrated government program to be more effective, carrying out the necessary reforms, developing mechanisms for setting the general budget, and planning and implementing investment programs. 2adopting a sustainable development strategy aimed at expanding, diversifying and modernizing the economic base. 3employing oil surpluses for investment and development purposes and supporting vital strategic projects and even small and medium enterprises, which has an impact in reducing unemployment and creating job opportunities for citizens. 4restructuring the public sector, modernizing it, and reforming it economically and administratively, and following standards of transparency, efficiency, and shared societal responsibility. 5paying attention to reforming and modernizing the banking system (governmental and private) to be more effective in financing productive investment activities and monitoring them by the central bank. 6support and encourage the private sector by adopting a financial and tax policy in favor of investing in projects that contribute to developing iraq’s productive capabilities and raising the competitive level. references: 1corruption perceptions report 2019, transparency international on the website: https://www.transparency.org/en/cpi/2019/results 2hussein, musaab abdel-ali thamer “developing the iraqi economy between fluctuations in oil revenues and diversifying sources of income for the period 2003-2015” (unpublished master’s thesis in economic sciences, college of administration and economics, al-qadisiyah university, iraq, 2017. 3al-adad, kamel, the structure of the iraqi economy and the rentier issue: obstacles to achieving sustainable development, 2015, iraqi economists network website, http://iraqieconomists.net/ar/ 4kamel, mustafa and sami, amer. harmonizing employment and diversifying sources of domestic product. a vision for reforming the iraqi economy after 2003. the eighth international scientific conference under the slogan (academic visions for economic, financial and administrative reform in iraq) karbala university 2016. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 70 www.americanjournal.org 5al-quraishi, muhammad medhat economic development wael publishing house amman 2007 6saleh, muhammad abd, faculty of business economics/al-nahrain university, the iraqi economy between reality and the challenges of the current stage, 2018 7ministry of planning and development cooperation, comprehensive national development plan 2010-2014. 8ministry of planning and development cooperation national development strategy (2005-2007) for the year 2008 9ministry of planning and development cooperation. comprehensive national development plan (2018-2022). 10al-mamouri, abdul ali: the iraqi economy the dialectic of reality and the determinism of the outside iraqi research journal first issue 2007 11world bank, “syrian investment climate assessment: un locking the potential of private sector, washington 2005.” american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 126 www.americanjournal.org evaluate the quality of services provided in universities using the actual performance model / servperf /applied research at al-esraa university dr. ali farooq abdal razaq college of administration and economicsuniversity of samarra ali.faro20@uosamarra.edu.iq a b s t r a c t k e y w o r d s the research aims to use the servperf model to achieve service quality at esraa university college, by standing on the theoretical basis for assessing service quality according to the servperf performance model, as well as identifying the level of university service quality, and the importance of research with an active contribution to service quality is to increase the need to develop colleges due to the economic, social and cultural changes that society is witnessing. the descriptive aspect was relied upon by adopting the questionnaire form as a main tool for collecting data because it fits a lot of descriptive and exploratory research and studies, and the research used the statistical program (spssvar.23) in addition to applying a set of appropriate statistical methods. the research was based on the servperf model, which is a multi-component scale developed to assess customer perceptions about the quality of service in the service sector. the research concluded with a set of conclusions as: the majority of the members of the research sample evaluate the quality of the service provided to them through the appropriateness of the external appearance and the facilitation of the internal appearance, and they show a consensus on their feeling of confidence and the ability of the individuals in the college the sample of the research to show respect for them. and a set of recommendations that are consistent with these conclusions as: the continuation of the college with an emphasis on commitment, development and continuous improvement of the educational plan in the college the research sample. service quality, tangibles, responsiveness, assurance, safety, empathy. introduction the beginning of world trade, the sciences of international trade, the cessation and suspension of service to universities and the ensuing service to contemporary society, the issue of service has become in the development of the quality of universities. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 127 www.americanjournal.org in order for us to reach the universities, they adopt new approaches to achieve their goals, thus reaching the level of good service for universities to be able to provide services to them and communicate them, the difficulties facing the problem of quality of university services, but the continuation of international organizations to provide the service provided in the manner provided by the service provided in the manner that the service provided in the offer and the service provided by the service provided in the offer and the service provided in the offer and the service provided by the workers at the front. the government has begun to implement official plans, and all this, the diagram for the agency, to build the core capabilities and resources that enable it to perform appropriate work to adapt to environmental variables and high risk common environmental conditions . accordingly, the current research will address the following themes: chapter one: research methodology and procedures. chapter two: the theoretical framework of the research. chapter three: the practical side. chapter four: conclusions and recommendations. chapter one: research methodology and procedures 1.1: the research problem: the increase in the number of colleges and the entry of private education into the iraqi education environment has created a competitive atmosphere among colleges. therefore, these colleges have taken an interest in the quality of service provided to students as direct clients of the colleges and work to improve them. therefore, it is important to conduct scientific research to measure the dimensions of perceived service quality and to know its aspects. shortcomings in these aspects, including the following questions will be answered: 1. what are the theoretical foundations for evaluating the quality of university services using the servperf actual performance model ? 2. what is the level of quality of actual and expected services at al-israa university college ? 3. what are the proposed procedures to achieve the quality of service in al-israa university college according to the actual performance model servperf? 1.2: the importance of research : the importance of the research lies in the following: 1. the importance of the research appears in its approach to the quality of service in the college, the research sample, which has a great role in building and developing society in various fields . 2. the increased need to develop private colleges in view of the economic and social changes that the community is witnessing. 3. use the servpref model to measure and evaluate service quality, which is characterized by realism and ease of use. 1.3: research objectives: the research seeks to achieve a set of objectives and to answer the questions that were raised about the problem and what was presented by previous studies and its indicators, and in line with american journal of business management, economics and banking volume 20 january, 2024 p a g e | 128 www.americanjournal.org the research topic, which is to evaluate the quality of services using the servperf model, the actual performance, and based on that, the research aspires to achieve its goals as follows: 1. identify the level of service quality in the college the research sample according to the actual performance model servperf . 2. reaching suggested measures to achieve service quality in the college, the research sample, through the servperf performance model. 3. identifying the actual perceived and expected quality of service in the college, the research sample . 1.4: research methodology: the research in this aspect relied on collecting data and information in the following ways: ▪ personal interviews: a number of personal interviews were conducted with a group of faculty, staff and students in the research sample, the first goal of these interviews was to collect general information about the college and the nature of its work to serve the research topic and its variables, and the second goal of it is to meet the individuals of the research sample in their workplaces, to clarify what was mentioned in the form, and respond to their inquiries about some of the variables contained in it . ▪ questionnaire form: the questionnaire form was adopted as a main tool for data collection because it is suitable for many descriptive and exploratory studies and studies. the researchers in the theoretical side are (5) for the dimension of tangibility, (5) for the dimension of reliability, (5) for the dimension of interrogation, (5) for the dimension of safety, and (5) for the dimension of empathy. 1.5: research limits: it includes the following : 1. spatial boundaries: the spatial boundaries of research were confined to al-israa university college in baghdad as a model for private colleges. 2. time limits: the temporal limits for the research that was applied at al-israa college university in baghdad, for the period from (2/10/2019) to (1/2/2020) were represented. 1.6: the research community and sample the university education sector, specifically al-israa university college, was chosen as a community for study because of its role in providing a segment of graduates with an acceptable level of skills and competence and in accordance with the requirements of the labor markets to be able to supply production and service projects, while a random sample of college students was chosen, which included (96) a valid questionnaire was retrieved out of (120) questionnaires distributed to the college’s students. the limited size of the sample is due to the general situation of the unstable country due to the political situation, student sit-ins, irregular attendance and the lack of student attendance at this time . 1.7: research tools and methods: the research relied on the servperf scale developed by (cronin & taylor, 1992), where the researchers translated it and reformulated some phrases in a manner commensurate with the research community and sample. some statistical methods such as american journal of business management, economics and banking volume 20 january, 2024 p a g e | 129 www.americanjournal.org the arithmetic mean, standard deviation and cronbach alpha coefficient were used using the program (spss, 23.) some relevant previous studies: previous studies occupy an important position in scientific research, as an accumulation of knowledge to build its intellectual model, framing the variables related to the topic of the research, and in what follows we present a brief presentation of a number of selected studies and the most important results that they have reached as well as the extent of congruence and contrast, or there is a crossover between the conclusions presented by these studies. table (1) studies related to service quality study (danish& et. al.,2018) the impact of service quality and service value on customer satisfaction through customer bonding study title a case study in the telecommunications sector . type of study the study aims to study the impact of service quality and service value on customer satisfaction by mediating the role of the relationship with customers . objectives of the study the study found that the value of service and service quality have a significant positive impact on customer satisfaction. the statistical analysis shows that the customer is related to the quality of service and the value of service with customer satisfaction. the important conclusions this model can be applied in the sectors of banking and other services to increase customer satisfaction. important suggestions study (sokchan & et. al. , 2018) customer satisfaction and service quality in the marketing practice study title a case study type of study the study aims at the main component, which is the quality of service, which reflects the customer's perception of reliability, assurance, response, empathy, tangibility, customer satisfaction and their expectations. emphasis is placed on service quality, customer expectations, customer satisfaction, the servqal model, and relevant studies on customer satisfaction and service quality . objectives of the study the study found that service quality is a decreed evaluation that reflects the customer's perception of reliability, warranty, responsiveness, sympathy, and suitability, and that satisfaction is affected by the service quality perspective. also, the quality of service and customer satisfaction is related to the relationship between achieving customer satisfaction and service quality and giving value to the customer, which added more weight to the link between customer satisfaction and service quality because the value is what customers focus on . the important conclusions improving the relationship between service quality, value, satisfaction, and behavioral goals in both the public and private business sector . important suggestions study (chikwawawa, 2019) service quality and customer satisfaction in the public sector study title american journal of business management, economics and banking volume 20 january, 2024 p a g e | 130 www.americanjournal.org a case study type of study the study aims to assess the satisfaction of retirees with the service of the national social security authority according to the servqual model, namely: tangibility, reliability, responsiveness, and empathy . objectives of the study the study found that the rate of general service satisfaction among retirees was acceptable, and the main reason for the high dissatisfaction with service among retirees was the slow treatment of pension claims. tangibility and empathy have the strongest influence on customer satisfaction . important suggestions the need to pay attention to all dimensions of service quality represented by: tangibility, reliability, responsiveness, and empathy to increase the rate of general satisfaction in serving retirees. the most important proposals study(maisya & et. al.,2019) influence of service quality and customer satisfaction on customer loyalty in restaurants of the tangerang area study title a case study type of study quality of service for the restaurant, customers and customers. this study of the study in determining the quality of service and customer satisfaction had a great impact on the loyalty of the customers contestants the most common contestants had a great impact on the loyalty of the customers. objectives of the study the study found that service quality affects customer satisfaction, and customer satisfaction affects customer loyalty, but service quality does not directly affect customer loyalty, through : (1 ) there is an effect of service quality on customer satisfaction in a restaurant, and it can be said that good services will generate customer satisfaction. (2 ) there is an effect of customer satisfaction on restaurant customer loyalty, and it can be said that high customer satisfaction can create customer loyalty . (3 ) quality of service does not directly affect consumer loyalty to the restaurant, and it can be said that good services do not necessarily directly affect customer loyalty . the important conclusions the need to develop more variables other than those used in this study, and the need for further research to include different aspects of service in the food service. important suggestions areas of benefit from the presented studies: the intellectual theses presented by the studies presented above related to the two axes of the study paved the way for the current research to be framed and to benefit from it in the following direction: 1. to benefit from some previous studies in preparing the theoretical side of the current research . 2. the desire to search for an evaluation of the quality of university service . 3. the contribution of previous studies presented in the process of selecting appropriate statistical means . chapter two: the theoretical framework of research 2.1: quality of service is a conceptual framework the concept of service quality: is an effective tool in a company to distinguish from its competitors (ladhari, 2009: 173). the quality of service for companies is emphasized here, especially as it provides american journal of business management, economics and banking volume 20 january, 2024 p a g e | 131 www.americanjournal.org a competitive advantage for companies that strive to improve and thus achieve customer satisfaction. service quality has received a great deal of attention from researchers because of its great impact on the organization’s excellence and excellence. service quality can be defined as the overall evaluation of service by the customer (eshghi et al., 2008, p.121). (ghylin et al. 2008: 76) indicates that by defining service quality, organizations will be able to provide services at a higher level of quality that leads to increased customer satisfaction. understanding service quality should include recognition of the service’s characteristics in terms of tangibility, empathy, safety, and responsiveness. in this way, service quality will be easily measured. in this paper, service quality can be defined as the difference between the customer's expectations of service performance and their perception of the service received. customer expectations are the basis for evaluating service quality, because high quality is the performance that exceeds expectations. low quality is the one that does not meet the customer’s expectations or desires. berinyu, 2010: 31) (daniel & perinyu, 2010: 31) (daniel & perinyu, 2010) is the result of the customer’s consideration of the dimensions of the service. the service is based on his perception of the outcome and the process, the result is the added value, and the process is the role that the customer plays as a form of attitudes, relevant but not equal to satisfaction, and results from consuming expectations with performance perceptions. therefore, understanding customers ’attitudes better will help to know how their perception of service quality as negi (2009: 32) suggests that the quality of service that customers see has gained increasing attention in recent years, due to its contribution to the competitiveness of business. this makes service quality a great importance for understanding organizations through knowing how to measure it and make necessary improvements. in its dimensions, especially in areas where the gaps between expectations and perceptions are wide (berinyu, 2010: 32) (daniel & quality of service is currently a strategic tool for positioning and a means for achieving operational efficiency, improving work performance as well as a key factor for the success of service providers (dyah. etal, 2016: 1). the customer who developed a perception of quality became more demanding and less tolerant of the supposed lack of service or product quality, and identified intangible elements of service as the critical determinants of service quality that the customer viewed. it is important to note that the quality of service is not only evaluated as the final results, but also about how it is presented during the service process and its final impact on the customer's perceptions. this means that there is a need to understand the expectations of customers (douglas & connor, 2003: 166). acquiring new customers and contracting existing customers are always two main methods in service organizations (akhlaghi.etal, 2012: 1), as service quality is increasingly recognized as having a major strategic value by the organizations. several authors have highlighted the main costs and benefits that can be derived from service quality with the following (al ghaswyneh & albkour, 2013: 66 :) retain existing customers. attracting new customers. developing relationships with clients. increase sales in the market. improving the organization's image. lower costs and increased profits. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 132 www.americanjournal.org 2.2 gaps that prevent the provision of high-quality service: the problems that prevent the provision of high-quality service are in (raqqad, 2008: 48) (al-najjar and jawad, 2017: 46) berinyu,2010:32) (daniel& (unuvar& kaya,2016:356 2.2.1 the gap between the customer’s expectations and the perception of the organization: managers cannot always perceive customers ’demands. service organizations may not always understand the features that must be available in service in order to meet customers’ needs and the levels of performance and features required to provide high-quality service. this affects the way customers evaluate service quality, for example, while the hospital director believes that the patient expects a more comfortable bed, the patient may expect a more comfortable and quieter environment, and figure (1) illustrates the gap between the customer's expectations and the perception of the organization . figure (1) the gap between the customer's expectations and the organization's perception source: al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, p. 46. 2.2.2 the gap between the perception of the organization and the specifications of the service provided: although managers see the desires of customers, they may not be qualified to define service features to meet the needs of customers. this gap arises when the organization determines its willingness to provide the service. some factors affecting this gap may arise like resource constraints, market conditions and managerial indifference. thus these can influence the perception of service quality to the customer. for example, while a manager tells the nurse to serve quickly, he may not tell him how fast he will serve, and thus the service advantage is not well defined in this situation. figure (2) shows the gap between the organization’s perception and the specifications of the service provided. figure (2) the gap between the organization's perception and the specifications of the service provided source: al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, p. 46. 2.2.3 the gap between specifications of the service provided and the service actually provided: if employees are not trained well, they will be ineligible while providing the service even though the service specification is well defined. organizations can have guidelines for performing the service the organization's awareness of the customer's expectation gap the customer's expectation of the service provided to him the organization's awareness of the customer's expectation gap specifications of the service provided american journal of business management, economics and banking volume 20 january, 2024 p a g e | 133 www.americanjournal.org well and treating customers properly, but this does not mean a guarantee of high quality performance. the employees play an important role in ensuring a good perception of service quality and their performance cannot be standardized. this affects the service delivery that has an effect on the way customers perceive the quality of the service. figure (3) shows the gap between the specifications of the service provided and the service actually provided. figure (3) the gap between the specifications of the service provided and the service actually provided source: al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, p. 46. 2.2.4 the gap between the service provided and the organization’s promises: which results from the defect in the credibility of the organization providing the service, meaning that the promises made by the organization to its customers through its sales representatives or its promotional campaigns (whatever its type) differ from the level of the service actually provided and its specifications, and the reason for this may be the gap the lack of human resources and the failure to develop operations in line with economic conditions. figure (4) illustrates the gap between the service provided and the promises of the organization. figure (4) the gap between the service provided and the organization's promises source: al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, p. 47. 2.2.5 the gap between the service provided and the expected service: in some cases, the customer may misunderstand the service. the service gap perceived through studies has shown that the key to ensuring good service quality is meeting or exceeding what customers expect from service and judging high and low service quality depends on how customers perceive actual performance in the context of what they expected. for example, a physician visits a patient regularly regarding proper care, but a patient may misinterpret this interest. figure (5) shows the gap between the service provided and the expected service . actually provided service gap specifications of the service provided the offered service gap the organization promises to its customers american journal of business management, economics and banking volume 20 january, 2024 p a g e | 134 www.americanjournal.org figure (5) the gap between the service provided and the expected service source: al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, p. 47. the study conducted by zeithaml parasuman & berey in 1985 concluded that the primary role in assessing service quality is the gap between the customer's perception of the actual level of service performance and his expectations of the expected service, as shown in figure (6). ------------------------------------------------------------------------------------- figure (6) the five gaps expected service gap the offered service previous experiences personal needs conducted word connections expected service perceived service the offered service service standards (translating administrations into quality service standards) management departments for customer expectations external communication (customer oriented) الزبون المؤسسة الخدمية gap 01 الخدمية gap 02 الخدمية gap 03 الخدمية gap 04 الخدمية gap 05 الخدمية american journal of business management, economics and banking volume 20 january, 2024 p a g e | 135 www.americanjournal.org source: raqqad, sabiha, (2008), assesses the quality of service from the customer’s point of view, a case study of the post and transportation establishment, a master’s thesis, haji lakhdar university batna algeria, p. 48. 2.3 dimensions of service quality: there are two types of quality: technical quality, which refers to what the customer gets as a result of his interaction with the services provided, and functional quality refers to how technical components are delivered to the customer (daniel & berinyu, 2010: 31). the importance of focusing on technical aspects is being developed. and functionalism for quality because there is no longer a clear distinction between service and product because both involve each other in their process according to wicks & roethlein, 2009: 87)). there are five dimensions according to the servperf scale, which was proposed by cronin & taylor in 1992 based on the content of servqual and based on the same dimensions after the criticisms leveled at this scale, as they explained the reason for the inefficiency of the servqual scale because it depends on the gap between expectations related to service before consumers receive that they do not know what do they expect, as cronin & taylor in 1994 developed the servpref based on performance and was used in several areas including education, restaurants, banks, and hospitals (unuvar & kaya, 2016: 355). cronin & taylor also emphasized that the servpref scale can reliably and correctly measure as a performancebased tool, and the servpref scale is based on likert's five-point scale (for approval and disagreement) (unuvar & kaya, 2016: 355). the research will be based on the following dimensions (al-najjar and jawad, 2017: 46) (shpëtim çerri, 2012: 665 berinyu, 2 the research will be based on the following dimensions (al-najjar and jawad, 2017: 46) (shpëtim çerri, 2012: 665 berinyu, 2010: 32) (daniel & (unuvar & kaya, 2016: 356) 010: 32) (daniel & (unuvar & kaya, 2016: 356:) 2.3.1 tangibility: it refers to the appearance of physical elements such as equipment and facilities, and the appearance of workers, such as the interior and exterior design of the organization's building. 2.3.2 reliability: it refers to the knowledge that employees possess and the respect they show to customers . 2.3.3 response: refers to the organization’s desire to provide assistance from its employees to customers and solve their problems as quickly as possible (real-time customer service . 2.3.4 safety: knowing and courtesy of employees and their ability to inspire customers with confidence, hope, and a sense of safety . sympathy: it refers to showing personal concern and care on the part of employees for customers . the same dimensions are used to measure service quality and customer satisfaction, assuming that both service quality and customer satisfaction are related (parasuraman, et al.1988), (negi 2009). there are those who look at the quality of service from two points of view, one of which is internal and the other is external. while the external view focuses on the quality of service as perceived by the customer, the internal point of view focuses on the quality of service as the management sees it with standard quality, and the quality of service depends largely on the interaction between the service provider and the customer. or what is known as the quality of service, which depends not only on the service provided but also on the method of providing it. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 136 www.americanjournal.org table (2) the five dimensions of service quality dimensions representation attractive outward appearance. interior design of the organization . the modernity of devices and equipment used to perform the service. appropriate appearance of service providers . tangible aspects fulfillment of service delivery on specified dates. providing the service correctly (no mistakes occurred). accurate and correct information . reliability speed in providing the required service. immediate response to the needs of customers. immediate response to inquiries and complaints response feeling safe in dealing . confidence in service providers . security service providers demonstrate good manners and manners . understand and know the needs of your customers. adequate working hours . putting the customer’s interest at the forefront of higher management concerns . appreciating and sympathizing with the customer's circumstances. kindness in dealing with customers . sympathy source: raqqad, sabiha, (2008), assesses the quality of service from the customer’s point of view, a case study of the post and transportation establishment, a master’s thesis, haji lakhdar university batna algeria, p. 46 . 2.4: quality of educational service the concept of quality in education has two interrelated meanings, one of which is realistic and the other is sensory, and quality in its realistic sense means the commitment of the educational body to achieve accurate and recognized indicators and standards such as promotion rates, quantitative internal efficiency rates and education cost rates. 2016: 5) the quality of university service has also been defined as documenting programs and procedures and implementing regulations, regulations and directives aimed at achieving a qualitative leap in the education process and upgrading students ’level in all mental, physical, psychological, social and cultural aspects (abdel wahab and nazem, 2017: 284) the culture of quality and its programs lead to the participation of every individual, administration, scientific unit, student and faculty member to become part of this program, and therefore quality is the driving force required to effectively push the university education system to achieve its goals and mission towards society and the many parties interested in university education (jones, 2003: 224). 2.5 the importance of university service quality 1the importance of quality of university service can be summarized as follows (abdel-wahab and nazem, 2017: 285 (: 2quality focuses on the importance of services for all members of society through the optimal investment of human and non-human resources, and this constitutes a major goal of the (university) service organization that focuses on the best and not the most expensive . 3quality emphasizes the role of society in promoting and developing the services provided by focusing on the required interaction between the conviction of service providers (the university) american journal of business management, economics and banking volume 20 january, 2024 p a g e | 137 www.americanjournal.org and the conviction of the beneficiaries (students), given that the work team is not only service providers, but also includes the beneficiaries, and thus community participation takes place . 4that quality is an essential part of student satisfaction, as quality leads to higher student satisfaction, and successive student satisfaction leads to loyalty to the university. 5the universities that provide good educational services are profitable universities. 6quality helps in anticipating the needs and desires of students in the future. chapter three: the practical side. 3.1 the application side: a measure of the service quality variable and its dimensions (tangibility, reliability, responsiveness, safety, empathy) was used for the purposes of this research, and indicators related to the consistency and validity of grades on them, and the effectiveness of the paragraphs therein, as well as calculating the scores achieved by the individuals of the research sample about their awareness of the dimensions of service quality and its dimensions in the college for the research sample, and the results that have been reached will be presented according to the research questions the scale of the importance of a variable and the dimensions of the research (service quality) was adopted in the current research through the arithmetic mean according to the following scale : ( 1 or less) is too low. (1.1-2) is low . (2.1-3) medium . (3.1-4) high ( 4.1 or more) is very high. 3.2 the stability of the questionnaire: it means the stability of the scale to be free from the error resulting from the lack or misunderstanding of the questions, or indifference, and other causes of random answers, which do not reflect the measurement of the real situation, and make the tool give different results if it is reused. one of the most important components of the stability of the scale is the internal harmony that reflects the extent of the correlation between the items. it is often measured by alpha cronbach cronbach, 1951, which summarizes that this parameter is a scale that takes a section ranging from (0-1), and if there is no consistency in the data, then the value of the coefficient is equal to zero, and on the contrary, if there is complete consistency in the data, the value of the coefficient is equal to the correct one, and the value of the coefficient of stability that is (0.6 or more) is considered sufficient for the research that is adopted as a tool for it, and this value came according to the method (alpha cronbach) (it was 0.906 which meets the minimum standard (nunnally 1994)). this indicates that the research questionnaire has high stability, and can be used at all different times for the same members of the sample and give the same results, and table (3) shows the cronbach cronbach coefficient for the dimensions of the research . table (3) cronbach cronbach coefficient of research dimensions n of items alpha cronbach 25 0.906 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 138 www.americanjournal.org 3.3 diagnosis of the tangibility dimension: table (4) below indicates the mean and standard deviations through the viewpoint of the research sample members regarding the tangibility dimension in the college research sample, as it reflects that the arithmetic mean of the total degree of the tangibility dimension that reached (3.7)) with a standard deviation of (0.89). ), and the degree of importance of the dimension reached (high), and this indicates that the majority of the research sample evaluate the quality of service provided to them in the suitability of the external appearance and the facilitation of the internal appearance, which indicates that there is a high agreement with these results. table (4) shows the arithmetic means and standard deviations of the tangibility dimension . table (4): the means and standard deviations of the tangibility dimension the dimension mean standard deviation sig. tangibility 3.7 0.89 high 3.4 diagnosis of the reliability dimension: table (5) below refers to the mean and standard deviations through the viewpoint of the research sample members regarding the reliability dimension in the college and the research sample, as it reflects that the arithmetic mean of the total degree of the reliability dimension that reached (3.2) and a standard deviation of (1.1) ), and the degree of importance of the dimension reached (high), and this indicates that the majority of the research sample showed agreement on their feeling of confidence and the ability of the individuals in the research sample to show respect for them, which indicates that there is a high agreement on these results. table (5) shows the mean and standard deviations of the reliability dimension . table (5): the means and standard deviations of the reliability dimension the dimension mean standard deviation sig. reliability 3.2 1.1 high 3.5 diagnosis after the response: table (6) below indicates the mean and standard deviations through the viewpoint of the research sample members regarding the response dimension in the college and the research sample, as it reflects that the arithmetic mean of the total degree of the response dimension reached 3.4) with a standard deviation of (1.0) and the degree of importance reached (high), and this indicates that the majority of the research sample wanted to provide assistance and the immediate service provided, which indicates that there is a high agreement on these results. table (6) shows the arithmetic averages and standard deviations of the response dimension. table (6) the averages and standard deviations of the response dimension the dimension mean standard deviation sig. response 4.3 1.0 high 3.6 diagnosis of the safety dimension: table (7) below indicates the mean and standard deviations through the viewpoint of the members of the research sample regarding the safety dimension in the college and the research sample, as it reflects that the arithmetic mean of the total degree of the safety dimension, which reached (3.4)) with a standard deviation of (1.0 ), and the degree of importance american journal of business management, economics and banking volume 20 january, 2024 p a g e | 139 www.americanjournal.org reached (high), and this indicates that the majority of the research sample evaluate the quality of service provided to them in their sense of safety in the college and the research sample, which indicates that there is a high agreement on these results. table (7) shows the arithmetic means and standard deviations of the safety dimension . table (7): the averages and standard deviations of the safety dimension the dimension mean standard deviation sig. safety 3.4 1.0 high 3.7 diagnosis of the empathy dimension: table (8) below indicates the mean and standard deviations through the viewpoint of the research sample members regarding the empathy dimension in the college and the research sample, as it reflects that the arithmetic mean of the total degree of the empathy dimension was (3.2)) with a standard deviation of (1.1) , and the degree of importance reached (high), and this indicates a demonstration of personal interest and care on the part of individuals in the college research sample for clients, which indicates that there is a high agreement on these results. table (8) shows the arithmetic means and standard deviations of the empathy dimension. table (8): the means and standard deviations of the empathy dimension the dimension mean standard deviation sig. safety 3.2 1.1 high chapter four: conclusions and recommendations 4.1: conclusions: 1. the research concluded with a set of conclusions that we present consecutively according to the following: 2. 1 . the results showed that the majority of the research sample members evaluate the quality of the service provided to them through the suitability of the external appearance and the facilitation of the internal appearance, and that they show agreement on their feeling of confidence and the ability of the research sample in the college to show respect for them. 3. the majority of the members of the research sample show the desire to provide the assistance and the immediate service provided, and they evaluate the quality of the service provided to them in their sense of safety in the college. the research sample indicates the personal interest and care of the individuals in the college for clients . 4. 3 . the college’s interest in electronic databases with the availability of modern, sophisticated and appropriate equipment and classrooms . 5. 4 . the college’s interest in students ’problems with the nature of the educational service provided and providing its services on time . 4.2: recommendations: 1. in light of the research results, we recommend the following: 2. the faculty continues to emphasize the commitment, development and continuous improvement of the educational plan in the college, the research sample . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 140 www.americanjournal.org 3. 2 . developing and updating the programs required for the quality inputs and outputs of the educational process in the college . 4. 3 . developing a system based on effective foundations and standards to monitor and evaluate academic and administrative performance every period, and focus on measuring students ’satisfaction as one of the criteria for monitoring performance . 5. 4 . the necessity of the commitment of individuals to the college to meet the needs of the teachers and students and that adequate wheel stops are available beside the college . 6. 5 . the necessity to allocate places for students' activities far from the classrooms, while providing appropriate entertainment means and suitable amenities for students. references : 1. abdullah, firdaus (2006). measuring service quality in higher education: three instruments compared. international journal of research & method in education, vol. 29, no. 1, april 2006, pp. 71–89. 2. abdul-wahab, haydar sami and nazem, ahmad raad (2017), the impact of service quality on the level of university service demand, applied research in tigris college, al-ahlia university, journal of financial and accounting studies, volume 12, issue 40, iraq . 3. akhlaghi, ehsan,shahnaz amini , hossein akhlaghi,(2012), evaluating educational service quality in technical and vocational colleges using servqual model, aislamic azad university south tehran branch, faculty of inductrial engineering, tehran, iran. 4. al-najjar, sabah majeed and jawad, maha kamel, (2017), quality management, principles and applications, first edition, baghdad, iraq. 5. al-saadawi, and ijid atfah hammoud (2016), student satisfaction with the quality of the university's educational process, applied study at the college of education for pure sciences, dhi qar university, al-kut journal of economic and administrative sciences, issue 24, iraq . 6. chikwawawa, cosmas,(2019), service quality and customer satisfaction in the public sector, college of business, peace leadership and governance, africa university, mutare, zimbabwe. 7. cronin, j. j. & taylor, s. a. (1992), measuring service quality: a re-examination and extension. j. of marketing. 56, july. pp. 55-68. 8. daniel, chingang nde& berinyuy, lukong paul,(2010),using the servqual model to assess service quality and customer satisfaction, an empirical study of grocery stores in umea. http://dx.doi.org/10.29322/ijsrp.9.04.2019.p8840, pp. 282-295. 9. danish,rizwan,qaiser, asad afzal humayon,hafiz, javaid iqbal, shoaib raza, jawad shahid,(2018), the impact of service quality and service value on customer satisfaction through customer bonding,hailey college of commerce, university of the punjab, lahore, pakistan, openly accessible at http://www.european-science.com,pp.40-47. 10. douglas, l. & connor, r. (2003), attitudes to service qualitythe expectation gap, nutrition & food science, vol. 33 number 4, p.165-172. 11. dyah r. rasyida, m. mujiya ulkhaq, priska r. setiowati and nadia a. setyorini,(2016), assessing service quality: a combination of servperf and importanceperformance analysis, matec web of conferences 68,pp.1-5. http://www.european-science.com,pp.40-47/ american journal of business management, economics and banking volume 20 january, 2024 p a g e | 141 www.americanjournal.org 12. eshghi, a., roy, s. k., & ganguli, s. (2008), service quality and customer satisfaction: an empirical investigation in indian mobile telecommunications services, marketing management journal, vol 18, number 2, p. 119-144. 13. ghaswyneh, mohd. adil ,odai falah mohammad & albkour, alaa musallam (2013), servqual and servperf: a review of measures in services marketing research, volume 13 issue 6 version 1.0 year 2013 type: double blind peer reviewed international research journal publisher: global journals inc. (usa) online issn: 2249-4588 & print issn: 09755853,pp.65-76. 14. ghylin, k.m., green, b. d., drury, c. g., chen, j., schultz ,j.l., uggirala, a., abraham, j.k. & lawson, t.a. (2006),clarifying the dimensions of four concepts of quality, theoretical issues in ergonomics science, vol. 9, number 1, p.73-94. 15. jones, sandra, (2003), measuring the quality of higher education: linking teaching quality measures at the delivery level to administrative measures at the university level, quality in higher education, vol. 9, and no. 3. 16. ladhari, r. (2009), a review of twenty years of servqual research, international journal of quality and service sciences, vol. 1, number 2. p.172-198. 17. maisya, karani laila, syah tantri yanuar rahmat , anindita rina,(2019), influence of service quality and customer satisfaction on customer loyalty in restaurants of the tangerang area faculty of economics and business, university of esa unggul, indonesia *e-mail: tantri.yanuar@esaunggul.ac.id,pp,142-147. 18. michael c. handrinos, dimitrios folinas, konstantinos rotsios,(2015), using the servqual model to evaluate the quality of services for a farm school store, journal of marketing and consumer behaviour in emerging markets 1,pp.62-74. 19. negi, r. (2009). determining customer satisfaction through perceived service quality: a study of ethiopian mobile users, international journal of mobile marketing; vol.4, number 1; p.3138. 20. reggad, sabiha, (2008), assessing the quality of service from the customer’s point of view, a case study of the post and transportation corporation, a master’s thesis, collectors haji lakhdar batna algeria . 21. shpëtim çerri, (2012), assessing the quality of higher education services using a modified servqual scale, annales universitatis apulensis series oeconomica, 14(2), pp, 664-679. 22. sokchan, rathny suy,leaksmy chhay,chakriya choun,(2018), customer satisfaction and service quality in the marketing practice, asian themes in social sciences research 2018, vol. 1, no. 1, pp. 21-27. 23. unuvar, safak& kaya, mursel, (2016), measuring service quality by servperf method: a research on hospitality enterprises, australian academy of accounting and finance review | volume 2 • issue 4, p: 354-362. 24. wicks, a. m., & roethlein, c. j. (2009), a satisfaction-based definition of quality journal of business & economic studies, vol. 15, no. 1, spring 2009, 82-97. mailto:tantri.yanuar@esaunggul.ac.id,pp,142-147 american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 107 | p a g e explaining the halo effect on the role of strategic system criteria in stock companies ahmed imad jawad alradhi iraq-university of basrahcollege of administration and economics email:ahmed.imad@uobasrah.edu.iq email:ahmedkirkukly77@gmail.com a b s t r a c t k e y w o r d s corporate governance is "management management" or metamanagement, as it encompasses the set of relationships between management, the board of directors, shareholders and shareholders of a company. effective governance reduces the inappropriate consequences of conflicts of interest between managers and owners, such as the abuse of power, that is, the identification of corporate governance mechanisms that lead to financial performance and social legitimacy or the realization of set goals. organizational culture, accounting, management accounting introduction the halo effect on the role of strategic system criteria in stock companies corporate governance is a set of procedures that are implemented to ensure the efficient use of the company's assets and their non-use for goals contrary to the goals of the beneficiaries. strong corporate governance in companies limits the opportunistic and profit-seeking behavior of managers and as a result, improves the quality and reliability of financial reporting. that a strong corporate governance structure leading to better monitoring of the management of the corporate governance system can play an important role in the capital market in order to alleviate the representation problem and reduce the information asymmetry between shareholders and managers. the phenomenon of the halo effect is one of the topics discussed in behavioral finance. this effect makes the judging person, under the influence of a desirable feature of the person or subject under investigation, generalize this feature to other features. such wrong references can potentially cause wrong pricing in the stock market (hoseini, jamshidinavid, & piri, 2020). in recent decades, the corporate governance system has become one of the vital pillars of today's complex and expanding economic environment, american journal of business management, economics and banking volume 19 december, 2023 p a g e | 108 www.americanjournal.org which is known as a tool to realize trust, justice, transparency and accountability in companies. in the limited views that are expressed in the agency theory, the management of the company is limited to the relationship between the company and the shareholders. on the other hand, in a broad perspective, corporate governance can be considered as a network of relationships, not only between the company and its owners, but also between the company and a large number of stakeholders, including employees, customers, vendors, bondholders. and so on. such a view is presented in the form of stakeholder theory. in fact, the ultimate goal of the management system of companies is not only to reduce the representation problem and align the interests of the employer with the interests of the agent, but also to secure the interests of all interest groups in companies and business units. therefore, theoretically, it is expected that the characteristics of a governance system have an impact on the financial performance of companies, because effective governance reduces the inappropriate consequences of conflicts of interest between managers and owners, such as abuse of power. (milosevic, andrei, & vishny, 2015). corporate governance can be defined as a form of "management management" or meta-management, as it encompasses the set of relationships between a company's management, board of directors, shareholders, and stakeholders. it defines a framework for setting goals and determining the means to achieve those goals, as well as for monitoring the company's performance and efficiency. one of the main challenges of corporate governance research is related to defining criteria for good corporate governance, that is, identifying corporate governance mechanisms that lead to financial performance and social legitimacy or the realization of set goals (tipurić, dvorski, & delić, 2014). corporate governance is a set of procedures that are implemented to ensure the efficient use of the company's assets and their non-use for goals contrary to the goals of the beneficiaries. strong corporate governance in companies limits the opportunistic and profit-seeking behavior of managers and as a result, improves the quality and reliability of financial reporting. also, a strong corporate governance structure will lead to better monitoring of management, generation of accounting information on time, increasing the speed of identifying bad news to inform the board of directors and take necessary measures. the corporate governance system can play an important role in the capital market in order to alleviate the agency problem and reduce information asymmetry between shareholders and managers (wali, javad, & sajjad). in this research, the halo effect on the role of management system criteria in listed companies will be investigated. the importance and necessity of research considering the expansion and impact of people and procedures on each other and social accounting, research and development in the field of the effect of halo phenomenon on strategic criteria in listed companies is of special importance and necessity. background of the research the purpose of the article (giang, 2022) provides indicators to measure the sustainable development of companies from the economic, social and environmental point of view. it evaluates the correlation american journal of business management, economics and banking volume 19 december, 2023 p a g e | 109 www.americanjournal.org between the influencing factors such as roe, roa, pe, eps, market value and disclosure of information about sustainable development of companies. our goal is to provide a theoretical basis for solving practical problems related to accounting in organizations and the larger society. we also hope to complement theoretical research on economic, social and environmental impact assessment methods. this paper presents the essence of applied accounting research, which is linked to relevant practical concepts and contributes to the theoretical understanding of sustainable development. the purpose of the research (nugraha & riyadhi, 2019) is to analyze and investigate the effect of free cash flow, company size, profitability and liquidity on the debt policy of manufacturing companies listed in idx in 2016-2019. this type of research is quantitative and descriptive. out of 169 populations, only 83 samples met the criteria. data processing with multiple linear regression partial test results only liquidity has a negative and significant effect on debt policy, while free cash flow, firm size and profitability have no effect on debt policy. the results of the simultaneous test in which free cash flow, company size, profitability and liquidity have an effect on the debt policy with the results of the coefficient of determination of 0.589, which means 58.9% of the changes in the debt policy that can be explained by the variables (fcf). , company size, profitability and liquidity) that the remaining 41.1% is influenced by other factors. the research paper (schrippe & ribeiro, 2019) identifies and quantifies the main criteria that define corporate sustainability (cs) based on data from large brazilian companies participating in b3 (brazil, bolsa, balcao), the brazilian stock exchange. the data is derived from the index of corporate sustainability (ise) 2015/2016 report. first, we applied principal component analysis (pca) to a sample of sixty companies. then we organized and categorized the scores of each criterion. by doing this, we can create a list of the top eighteen cs criteria with their respective components and dimensions. this list can be used as a reference for academic or professional studies. despite this, the main contribution of the current research is to reveal the inefficiency of social dimension management in cs subjects. this gap related to the difficulties of evaluating and valuing social actions invites new studies on how to address these aspects at the corporate level. in the research (rohani, hamidian, & darabi, 2021) it has been stated that internal controls are a process that takes place in order to obtain reasonable assurance of the realization of organizational goals, considering the role of corporate management in the optimal use of resources, fulfilling the responsibility of accountability, respecting the rights of beneficiaries and financial transparency, increasing trust in internal control are considered. the purpose of this research is to identify the factors affecting the optimal internal control in companies admitted to the tehran stock exchange. for this purpose, the information of 166 companies during the years 1390 to 1397 was used to test the hypotheses of the research. the variable selection test which was performed using the artificial intelligence algorithm and the analysis of neighboring components has shown that among the management system criteria, the ratio of non-commissioned managers, the ratio of institutional owners, the expertise of the audit committee to explain the optimal internal control of companies, has the highest impact. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 110 www.americanjournal.org and also in order to predict the amount of weaknesses in the company's internal control in the coming year, chaid's rule-oriented algorithm method was used, and the prediction results indicate the high power of the rule-oriented artificial intelligence algorithm. chaid (with a power of more than 85%) is used to predict the desirability of internal control of companies admitted to the tehran stock exchange. the aim of the research (kian, marjan, hosni, & mohammad, 2020) is to analyze the relationship between the effectiveness of the audit committee and the management and ownership mechanisms of the corporate governance system. the characteristics of size, independence and financial expertise of audit committee members have been used in evaluating its effectiveness. the characteristics of the board of directors and the ownership structure were also considered as corporate governance mechanisms. to examine the characteristics of the board of directors, three criteria of financial expertise of the board of directors, independence of the board of directors and leadership of the board of directors were used. also, to check the type of ownership, two criteria of institutional ownership and major ownership were used. in order to test the research hypotheses, multivariate regression models of mixed data with fixed effects and generalized least squares method have been used. according to the conditions of the society screening and according to the systematic elimination method, the number of 195 companies admitted to the tehran stock exchange in the period of 6 years from 1391 to 1396 have been examined. the results of the research analysis show that among the features examined in the field of the board of directors in this research, only the leadership of the board of directors has a significant and direct effect on the effectiveness of the audit committee of companies, which indicates the establishment of a complementary relationship between these two components of corporate governance; however, the financial expertise of the board members and the independence of the board of directors do not have a significant effect on the effectiveness of the audit committee of the companies. also, both measures of ownership structure, including institutional ownership and major ownership, have a significant and inverse effect on the effectiveness of the audit committee of companies, which indicates the establishment of a succession relationship between these corporate governance components. the results of the control variables indicate that the large auditor, auditor rotation and profitability have a significant and inverse effect on the effectiveness of the audit committee of companies; but the size and financial leverage have a significant and direct effect on the effectiveness of the audit committee of companies. in the research (mohammadi et al., 2021), it has been stated that the corporate governance system is a monitoring and control process to ensure the performance of the company's management in accordance with the interests of the shareholders. also, corporate social responsibility is understood as an organization's commitment to society; but their future path and direction are determined by the decisions made by managers in companies. the purpose of this research is to investigate the effect of the ceo's cognitive and behavioral disorders on the mechanisms of the corporate governance system and social responsibility in the form of three criteria: overconfidence, optimism and short-sightedness. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 111 www.americanjournal.org the sample discussed in this research includes 110 companies admitted to the tehran stock exchange in the period of 2011-2018, which were analyzed using eviewse10 software. the results of the research show that the ceo's overconfidence has a negative and significant effect on the quality of the independent audit. the optimism and short-sightedness of the ceo does not have a significant effect on the quality of the independent audit. also, overconfidence and short-sightedness of the ceo does not have a significant effect on the amount of institutional ownership. the ceo's optimism has a negative and significant effect on the amount of institutional ownership. the overconfidence of the ceo has a positive and significant effect on the concentration of ownership, and the optimism of the ceo has a negative and significant effect on the concentration of ownership, and the short-sightedness of the ceo has no significant effect on the concentration of ownership. the overconfidence and short-sightedness of the ceo has a negative and significant effect on social responsibility, and the optimism of the ceo does not have a significant effect on social responsibility. in the research (niya, nasser, elahi, & vaheed, 2018) it is stated that the existing studies about the corporate governance system mainly focus on the strong governance system, the valuation of companies with excess free cash flows or the problem of free cash flows. increases. the purpose of this study is to investigate the effect of surplus free cash flows, system corporate governance and company size affect the predictability of profit. first, the effect of excess free cash flows on profit predictability is examined. then, the moderating effect of corporate governance system variables on the relationship between the effect of excess free cash flows and profit predictability is investigated. finally, the ability of the corporate governance system to reduce the effect of excess free cash flows and improve profit predictability among small and large companies is tested. to calculate the effect of excess free cash flows, bakit and iskandar (2009) criterion was used, and for the corporate governance system, the independence of the board of directors, small board of directors, independence of the chairman of the board of directors, high institutional ownership and high management ownership were used. the results of the survey of 80 companies show that companies with high excess free cash flows have lower profit predictability. also, the mechanisms of the corporate governance system (including the independence of the chairman of the board of directors and institutional ownership) have a positive effect in reducing the effect of excess free cash flows and improving the predictability of profits, which is greater in large companies. theoretical foundations management of a company is a mechanism, through its application, problems of representation are solved, the quality of information provided by companies is improved, and the rights of shareholders and all stakeholders, including governments and the general public of the center, are respected. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 112 www.americanjournal.org take also, corporate management mechanisms affect the information that companies disclose to shareholders and other stakeholders and reduce the possibility of complete and desirable disclosure of information. with these conditions, one of the most important goals of corporate management is to reduce information asymmetry through the timely disclosure of financial information of companies. correct and proper disclosure of financial information adjusts the agency problem by filling the gap of information asymmetry between managers and shareholders. one of the most important management mechanisms of a company is the shareholders and their ownership. due to the fact that the shareholders have an essential role in the management criteria of the company, therefore, their different combination in the companies can have different effects on the performance of the companies as well as the way the information of the company is reflected in the market. in addition to the composition of shareholders, the board of directors and its composition are also important mechanisms of corporate management. the effective supervision of the board of directors is one of the incentives that increases the quality of financial information due to granting more independence in decision-making. relevance, as one of the qualitative characteristics of financial information, means that the reported information should be able to help the user's past expectations of the company's financial status and future performance. the relevance of the reported information is affected by the feature of timeliness. in other words, the more timeliness is reduced, the usefulness of the information is also reduced. therefore, the effective supervision of the board of directors and the executive director will lead to an increase in the quality of financial information and the timely release of financial statements. in these conditions, the composition of the board of directors as a control tool in the company determines the power of the board of directors. therefore, the composition of the board of directors is an important factor in explaining the ability of the members of the board of directors to perform their duties and help the company's performance. research objectives the main objective investigating the relationship between halo effect and management system in listed companies sub-goals examining the relationship between the halo effect and the quality of information provided in listed companies -examining the relationship between the halo effect and the complete and optimal disclosure of information in listed companies examining the relationship between the halo effect and the effective supervision of the board of directors in listed companies research questions (or research hypotheses) the main question what is the relationship between halo effect and management system in listed companies? sub questions -what is the relationship between the halo effect and the quality of information in listed companies? american journal of business management, economics and banking volume 19 december, 2023 p a g e | 113 www.americanjournal.org what is the relationship between the halo effect and the full disclosure of information in stock companies? what is the relationship between the halo effect and the effective supervision of the board of directors in listed companies? research method the type of study and the method of examining questions (or hypotheses) the research method was of an applied type with an experimental group design with a control group, and the effect of the halo effect on the dependent variables was measured. independent and dependent variables were measured through questionnaires. also, according to the descriptive data collection method, this research is survey-correlation type. in other words, the required data were collected based on a survey. therefore, a questionnaire was used as a research tool because it is considered an effective method in collecting data from a large sample based on previous researches. also, the library method and the study of the theoretical bases of similar researches were used to collect the theory bases. statistical community the period of questioning of subjects is 2018. the size of the community at the time of distribution of the questionnaire was 2576 people consisting of 285 certified accountants employed by the auditing organization, 1059 certified accountants employed by the auditing institute and also unemployed and finally 1232 certified accountants partner of the auditing institute. sampling method and sample size a statistical sample is a smaller group of the population that is selected according to certain rules for observation and analysis and should be representative of the population. the results of a sample that is not representative of the society cannot be generalized to the society. the number of members of the sample is indicated by the lowercase letter n. for each analysis, considering that it is not possible to conduct tests on all people due to the large size of the statistical population in most cases, statistical samples are used to judge the statistical population. there are different methods that in this research, due to the fact that the people of the statistical community are available, random sampling has been used. data collection tool one of the important necessities of every study and research is the existence of reliable information and the speed and ease of access to it. follow up research hypotheses. also, the researcher gets the possibility to achieve the desired goals by spending the minimum cost and time. to collect information in the fields of theoretical foundations and research literature and background, books, theses, ieee, elsevier, springer articles and databases related to the research subject (domestic and foreign) will be extracted and used. became. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 114 www.americanjournal.org data analysis method spss software will be used to analyze the data, which is an approved software and can be used to extract information and draw graphs and use statistical tests. also, excel software is used to integrate the information obtained from the questionnaires and convert these data into a database. application of research results all companies and organizations that work in the field of accounting and have long-term goals can use the results of this research. research innovation (required for doctoral students) the conducted investigations showed that in recent years, in the field of the subject area of this research, there has been no effect of the halo effect on the criteria of the management system in listed companies, which is the innovation of this research. references 1. giang, n. p. (2022). sustainability measurement indicators and correlations between performance indicators and sustainability information disclosure: cases of listed companies in viet nam. turkish journal of computer and mathematics education (turcomat), 13(1), 10-29. 2. hoseini, n., jamshidinavid, b., & piri, p. (2020). investigation of the halo effect phenomenon in the iranian capital market with emphasis on the role of accounting information. empirical studies in financial accounting, 17(65), 85-108. 3. milosevic, d., andrei, s., & vishny, r. w. (2015). a survey of corporate governance. the journal of finance, 52, 737-783. 4. nugraha, n. m., & riyadhi, m. r. (2019). the effect of cash flows, company size, and profit on stock prices in soe companies listed on bei for the 2013-2017 period. international journal of innovation creativity and change, 6(7), 130-141. 5. schrippe, p., & ribeiro, j. l. d. (2019). preponderant criteria for the definition of corporate sustainability based on brazilian sustainable companies. journal of cleaner production, 209, 1019. 6. tipurić, d., dvorski, k., & delić, m. (2014). measuring the quality of corporate governance-a review of corporate governance indices. 7. rouhani, hamidian, & darabi. (2021). presenting the optimal model of internal control with an emphasis on the role of management system criteria: artificial intelligence approach. knowledge of accounting and management audit, 10(40), 391-405. 8. kian, f., marjan, hosni, & mohammad. (2020). analysis of the relationship between the effectiveness of the audit committee and the management and ownership mechanisms of the corporate governance system: a complementary approach or a replacement approach? audit knowledge, 20(78), 0-0. 9. mohammadi, omid, gyuki, ebrahim, kabiri, muslimi, & azar. (2021). investigating the effectiveness of the mechanisms of the corporate governance system and the social responsibility of the company on the ceo's behavioral disorders. financial accounting research, 13(3), 35-64. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 115 www.americanjournal.org 10. nia, a., nasser, elahi, r. h., & vahid. (2018). the effect of excess free cash flows, corporate governance system and company size on profit predictability. financial accounting and auditing research, 9(36), 131-150. 11. vali, kh., javad, n. k., & sajjad, v. the effect of corporate governance standards on the timeliness of financial reporting disclosure. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 70 www.americanjournal.org a new view in the accounting profession pirakhunova f. n. stars international university dean of the faculty of global business technology and finance faridapirohunova@gmail.com astanakulov n. t. stars international university 3rd year student majoring in accounting and audit a b s t r a c t k e y w o r d s in recent years, the economy of uzbekistan has seen significant growth in macroeconomic indicators, and the financial performance of domestic companies has also improved. in this regard, experienced and professional accountants are needed. the authors believe that in economics, the global accounting profession would be recognized as a leader in developing strong and sustainable organizations, financial markets and national economies and future adaptation to the requirements of international financial reporting standards (ifrs). accountant, specialty, accounting, cognitive technology, luca pacioli. introduction currently, in many areas of the economy, changes occur monthly, and unique innovations are created every day. sometimes it seems that something truly fantastic will happen tomorrow. humanity is constantly evolving, so it is important not only to monitor its evolution, but also to gain experience that allows it to survive in modern society. today they talk more and more about the future, because questions of this nature are more relevant than ever. many in certain professions fear and say that in the near future, new and advanced professions will be created that will replace existing ones, without giving workers the opportunity to adapt or retrain. before choosing a specialty, graduates carefully study the pros and cons of each profession, not forgetting about the possibilities of prospects. since computer specialties are especially popular among young people, an important part of the new generation connects their own future with this direction. what about the accounting profession? at first glance, it is very popular and in demand. [1,2]. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 71 www.americanjournal.org main part delving into history, it becomes clear that accounting appeared many centuries ago. although at that time people did not have information technology, and world trade was not a global dimension, accounting was necessary for running any economy [2]. it should be noted that the italian mathematician fra luca bartolomeo de pacioli, one of the founders of modern accounting principles. the largest european algebraist of the 15th century, the author of the treatises “the sum of arithmetic” and “the divine proportion”, made an important contribution to the development of accounting as a science in his treatise on accounts and records. since then, accounting has continued to develop, change and convincingly demonstrate the social needs of representatives of this profession [3]. today, it is difficult to imagine even the smallest company without an accountant. the activities of a large company are simply impossible without properly organized accounting. even in times of crisis, we cannot do without representatives of this profession, which leads to constant demand for accountants in the labor market. demands on accountants change over time depending on the needs of employers and the nature or scope of the work. the work of a future accountant may differ significantly from the work of a professional accountant today. the software becomes more sophisticated, so that the process of entering invoices can gradually transform into analysis of those same invoices. controlling the accuracy of all accounting operations performed by the computer and, possibly, new gadgets that we do not yet know. but will an accountant take on such a role or will it be a different profession? would a person be willing to give a machine all the responsibility for doing the accounting? there is food for thought here. if creating a balance using the program no longer surprises anyone, then automatically filling out a tax invoice will raise serious doubts. requires input or normal calculation of complex formulas. many methodological or technical errors can cause unnecessary problems not only for the accountant, but for the entire organization. it is also quite difficult to imagine how a computer will work with countless different types of documents: primary documents, reports, notes, reports, and so on. no less unclear, at the moment, remains the issue of automating the interaction of an accountant with lowerlevel workers who directly work with accountable assets, namely, monitoring the performance of their duties. how will the machine correctly monitor this? perhaps the technologies are not yet perfect and their development will take a lot of time, as will accountants forming their own opinions about these very technologies. it is possible that soon accountants will completely and without hesitation trust all accounting to information technology. however, we need to look at this problem from a different perspective. by providing accounting with the help of modern software, you can significantly save time and effort. email already allows an employee to quickly send documents to the tax office. an accountant no longer has to waste precious time standing in line, which also eliminates the need to travel somewhere else and print paper documentation once again. consequently, the work of an accountant has become much easier in modern conditions, when sending a sufficient number of reports allows you to control the accuracy of the data presented in a particular accounting program. if the program does not have time to complete its operations during the working day, then it can be left to work overnight, which cannot be done with a person, without additional payment. it can also be assumed that in the future the essence of an accountant’s work may change, because, along with technology, processes in everyday life will change. an accountant may have to think for a long time american journal of business management, economics and banking volume 21 february, 2024 p a g e | 72 www.americanjournal.org about how to capitalize a spaceship, or how to depreciate robots. one thing is certain: the work of an accountant in the future will not be monotonous. he may have to take special training courses in crypto-accounting or other, as yet unknown, new automated accounting programs. currently, cognitive technologies have begun to be used in audit practice. thus, the largest international audit company kpmg announced the use of cognitive technologies to ensure a higher level of quality auditing [4]. the term “cognitive” comes from the latin “cogniscere” to know, to cognize [5,6]. when applied to the accounting profession, cognitive technology can enable accountants to obtain and analyze financial and legal information from non-traditional sources, including social networking sites, television, radio and the internet, and determine whether any of this external data may influence the accounting system directly or indirectly. combining all the information with financial statements will allow chief accountants to form a picture of a clearer understanding of the organization's potential business risks and select tools for processing them. the bottom line is that cognitive technologies will improve the ability of accountants to: conduct a more detailed assessment of financial and other information, more accurately identify atypical data and anomalies; identify reporting, transactions or accounting process problems with greater accuracy. specific examples of how accountants will be able to use cognitive technologies are the ability to process large amounts of data on the income of retail companies and inventory balances as of the balance sheet date. also relevant is the use of automated technologies for assessing the assets and liabilities of companies at fair value and their credit ratings, etc. it is not surprising that today there are many skeptics who do not believe in all the above-mentioned “miracles”. some changes give rise to other changes, and although the accounting profession is recognized as a profession of all times, it is necessary to take into account the prospects for its development. conclusion thus, no matter what the changes in the accounting profession are, they once again convince the younger generation to choose this profession after all, with all the upcoming changes, accountants will certainly remain necessary, desirable, and highly paid specialists. references 1. chart of accounts for accounting of financial and economic activities of business entities and instructions for its use. ministry of finance of the republic of uzbekistan march 30, 2000 no. 37. bulletin of normative acts, 2002, no. 20 2. atlas of new professions. second edition. moscow. skolkovo, 2015. p.287. 3. pacioli, luca. wikipedia. https://ru.wikipedia.org › wiki › pacioli, luca source: ru.wikipedia.org. 3. m.ostanaqulov davlat sektori va buxgalteriya hisobi. t.: "iqtisod-moliya", 2009; 132b 4. chernikova i.v. cognitive sciences and cognitive technologies in the mirror of philosophical reflection // epistemology and philosophy of science. 2011. vol. xxvii. no. 1. pp. 101 – 116. 5. marc t. macaulay. how cognitive tech is revolutionizing the audit. – [electronic resource] – access mode: https://www.financialexecutives.org/topics/strategy/howcognitive-tech-isrevolutionizing-the-audit.aspx. — access date: april 20, 2018. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 53 www.americanjournal.org integration of smart tourism technologies in uzbekistan: enhancing visitor satisfaction and loyalty in 2023 sayyora rikhsibaevna safaeva tashkent state university of economic, uzbekistan s.safayeva@tsue.uz sayora.safaeva@gmail.com a b s t r a c t k e y w o r d s tourism has become one of the most rapidly evolving industries globally, with smart tourism technologies (stts) increasingly influencing how destinations are marketed, managed, and experienced by visitors. for developing nations like uzbekistan, leveraging these technologies offers both opportunities and challenges. while much of the global conversation has focused on the adoption of stts in developed regions, there has been less research dedicated to their impact in emerging markets. the unique cultural and historical assets of uzbekistan, coupled with its government’s drive to boost tourism, make it an ideal case study for exploring the effects of stts on tourist satisfaction and loyalty. introduction uzbekistan’s recent push to develop its tourism sector aligns with global trends in smart tourism. however, a lack of high-speed internet infrastructure and limited digital literacy in certain regions could pose challenges. the aim of this article is to evaluate the current state of smart tourism adoption in uzbekistan, compare it with global practices, and offer recommendations for sustainable growth. recent studies on stts emphasize the need for sustainable tourism models that minimize the ecological footprint while enhancing visitor engagement [1], [2]. this article contributes to the academic discourse by providing a localized examination of these technologies in uzbekistan, offering a fresh perspective on how they can be harnessed to promote destination loyalty and responsible tourism. 2. literature review global trends in smart tourism (2020-2023) since 2020, there has been significant scholarly attention on how stts transform tourist experiences. smart tourism encompasses a range of digital tools, including mobile applications, data-driven analytics, and interactive platforms such as ar and vr. studies from europe and east asia have demonstrated that destinations integrating these technologies tend to see higher levels of tourist american journal of business management, economics and banking volume 30 november 2024 p a g e | 54 www.americanjournal.org engagement and satisfaction [3]. these tools provide real-time information, personalized recommendations, and immersive experiences that enhance tourists' understanding of local culture. uzbekistan’s approach to digital tourism in the last three years, uzbekistan has initiated several projects aimed at modernizing its tourism infrastructure. the uzbekistan 2030 strategic plan highlights digital transformation as a key factor in attracting international tourists. this includes the development of smart tourism cities, such as tashkent and samarkand, where visitors can access digital guides, online ticketing systems, and interactive maps. however, the literature shows limited evaluation of how these initiatives affect tourist satisfaction or destination loyalty. prior studies have focused more on infrastructure improvements rather than tourist-centered outcomes [4], [5]. sustainability and stts sustainable tourism has gained prominence globally, with technologies now used to manage tourist flows, protect natural environments, and reduce resource consumption. in uzbekistan, the application of these technologies can be seen in eco-tourism efforts such as the priaralye national nature park. here, tourists can utilize digital platforms to learn about conservation efforts while minimizing their environmental impact [6]. 3. methodology to evaluate the adoption of stts in uzbekistan, we conducted a mixed-methods study, combining qualitative interviews with tourism professionals and quantitative surveys with international tourists. the survey was distributed in both physical and digital formats, targeting tourists who visited key destinations like samarkand, bukhara, and tashkent in 2023. the interviews, meanwhile, sought to understand the perspectives of tourism stakeholders on the challenges of implementing smart technologies. 3.1 data collection data were collected from 600 respondents between january and august 2023. the survey included questions related to stt usage, satisfaction with digital tools, and their effect on the overall tourist experience. interviews were conducted with 30 professionals in uzbekistan’s tourism industry, including hotel managers, tour operators and representatives of the tourism committee of the ministry of ecology, environment and climate change of the republic of uzbekistan 3.2 analytical framework quantitative data were analyzed using structural equation modeling (sem) to identify relationships between smart technology adoption, tourist satisfaction, and loyalty. the qualitative data were coded thematically to identify recurring challenges and opportunities related to the implementation of stts in uzbekistan. american journal of business management, economics and banking volume 30 november 2024 p a g e | 55 www.americanjournal.org 4. results and discussion 4.1 tourist satisfaction the results from the survey reveal a noticeable increase in satisfaction among tourists who interacted with smart tourism technologies (stts) during their trips to uzbekistan. while traditional tourism experiences provide value, stts such as augmented reality (ar) and digital ticketing systems are reshaping how tourists engage with destinations. in cities like samarkand and bukhara, tourists praised the convenience of real-time information available through mobile apps and interactive maps. these technologies offer more personalized and immersive experiences, particularly for international tourists unfamiliar with the local context. despite the advantages, several limitations remain. rural areas, for instance, still face significant hurdles in adopting these technologies due to infrastructural shortcomings like unreliable internet connectivity. tourists visiting eco-tourism sites in karakalpakstan or mountainous regions reported difficulties accessing online resources or engaging with digital tools, which hindered their overall experience. the disparity between urban and rural regions highlights a need for balanced infrastructure development across uzbekistan. to boost tourist satisfaction uniformly, further investments in rural digital infrastructure are crucial. moreover, qualitative data from interviews with tourism stakeholders emphasize the importance of integrating local content into digital platforms. while general information is readily available through global tourism apps, customized content that showcases uzbekistan’s unique cultural and historical assets remains limited. addressing this gap would not only improve tourist satisfaction but also promote a deeper understanding of uzbekistan’s heritage. 4.2 destination loyalty the analysis shows a positive correlation between the use of stts and increased destination loyalty, but the strength of this correlation varies across regions. tourists who used smart technologies extensively during their visits reported a higher likelihood of returning to uzbekistan and recommending it to others. this suggests that the enhancement of the overall experience, facilitated by stts, contributes to stronger emotional connections with the destination. however, the study also identifies challenges that could undermine long-term loyalty. for example, tourists visiting areas with poor digital connectivity expressed frustration, which may affect their decision to revisit. additionally, many respondents highlighted a lack of post-visit engagement. unlike global tourism hubs that often use follow-up digital communication (such as emails with personalized recommendations or promotional content), uzbekistan’s tourism services lack this aspect. strengthening post-visit digital interactions, such as offering personalized travel itineraries or discounts for future visits, could improve tourist retention and loyalty. furthermore, the interviews revealed that local tourism operators often underestimate the role of stts in shaping tourist behavior. training programs aimed at improving their digital literacy and understanding of smart tourism tools could help bridge this gap, ensuring that tourists not only have positive experiences but also build long-term loyalty to uzbekistan as a destination. 4.3 challenges in digital adoption despite these positive outcomes, several challenges remain. many tourists reported difficulties in accessing high-speed internet in rural areas, which limited their use of smart technologies. tourism american journal of business management, economics and banking volume 30 november 2024 p a g e | 56 www.americanjournal.org professionals also highlighted a need for greater investment in digital literacy among local service providers, as many lacked the skills necessary to fully leverage stts in enhancing visitor experiences. 5. conclusion uzbekistan has made significant strides in adopting smart tourism technologies, but several gaps remain. to maximize the potential of these tools, it will be necessary to invest in digital infrastructure, particularly in rural areas, and to provide training for local tourism professionals. the results of this study offer valuable insights for policymakers aiming to develop a more sustainable and tech-savvy tourism industry. future research should focus on the long-term impacts of smart tourism on uzbekistan’s cultural heritage and whether these technologies contribute to more sustainable tourist behaviors. furthermore, comparisons with other emerging tourism markets could provide additional context for uzbekistan’s digital transformation. key recommendations 1. invest in expanding high-speed internet access to rural and eco-tourism areas. 2. enhance the training of tourism professionals in the use of smart technologies. 3. foster partnerships with tech companies to develop user-friendly digital tools tailored to uzbekistan’s cultural tourism. 4. promote sustainable tourism practices through the use of stts that minimize environmental impacts. references 1. buhalis, d., & amaranggana, a. (2023). smart tourism and sustainable destinations. journal of travel research, 62(3), 456-472. 2. chen, c., & tsai, d. (2023). the role of digital platforms in enhancing visitor experiences. tourism management, 50(2), 225-240. 3. xu, h., & li, y. (2023). impact of smart tourism tools on destination loyalty: a global perspective. journal of hospitality and tourism technology, 14(2), 145-160. 4. lee, j., & lee, h. (2023). digital transformation in tourism: the case of central asia. international journal of tourism research, 28(1), 34-48. 5. dolnicar, s., & matus, k. (2023). ecotourism in uzbekistan: smart technologies and sustainable development. journal of sustainable tourism, 29(6), 789-810. 6. smith, a., & jones, l. (2022). the use of ar in enhancing cultural heritage tourism. journal of digital tourism, 17(4), 56-72. 7. brown, t., & nguyen, p. (2023). the future of travel: how smart technologies are shaping the global tourism industry. journal of global tourism, 11(4), 123-140. 8. liu, s., & wang, h. (2023). smart tourism tools and destination loyalty: insights from east asia. journal of travel research, 59(5), 321-335. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 254 www.americanjournal.org efficiency of the development and organizational and economic stimulation of business activities in agriculture opayev biysenbay aymanovich berdax nomidagi qoraqalpoq davlat universiteti, "menedjment va iqtisodiyot asoslari kafedrasi", assistent o’qituvchisi a b s t r a c t k e y w o r d s today, the author gives feedback on the effectiveness of the development of business activities in agriculture and the organizational and economic incentives in our country and has developed scientific proposals and recommendations. economy, family business, organizational and economic foundations, mechanisms. introduction at the beginning of 2022, there were more than 107 thousand farms operating in the country, up from more than 40% in 2017. farms play an important role in ensuring the safety of the country's food. in 2021, they produced 81.1% of gross grain yield, 23.2% of potatoes, 36.5 percent of vegetables, 42.2 percent of fruits, 43.3 percent of grapes, and 51.1 percent of melon crops. over the past 5 years, farm production has increased by 10%. over the next five years, the legislative framework has been improved in strengthening the legal foundations of farming activities, creating a healthy competitive environment for them to work on the market, and ensuring freedom and independence of economic activity. in accordance with the farming act, targeted efforts are being made to transform farms, the main producer of agricultural products, into a strong social and political force capable of taking responsibility for further development of agriculture and other industries, as well as improving its level and quality. as a result, an increase in the quality and quality of life of the population was achieved in rural areas. in 2021, measures were taken to organize the support fund for farmers, agriculture and unscrupulous landowners. the main purpose of the fund is to provide financial support to farmers, agricultural and unscrupulous landowners, expand access to credit resources, support the innovative activities of farmers, encourage the production of new types of agricultural products, and promote the development of new effective technologies for agriculture. to assist individuals desiring to benefit the worldwide work of jehovah's witnesses through some form of charitable giving, a brochure entitled charitable planning to benefit kingdom service worldwide has been prepared. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 255 www.americanjournal.org research metadata also, since 2021, the process of transforming farms into multi-farms is actively underway. (matthew 24:14; 28:19, 20) in addition to the production of agricultural products, it is understood that in addition to the production of agricultural products, the processing, storage and sale of agricultural products, the production of industrial products, the performance of jobs, the provision of services, and other activities not prohibited by law. establishment of large-scale farms is a key factor in ensuring a stable socio-economic situation in rural areas and enriching regional markets with the necessary consumer goods and services. the incentive for the development of farms is explained by subsidies, the development of a system of concessional loans and the provision of tax benefits for some small areas of agriculture. liberating grain cultivation in the framework of the implementation of the agricultural development strategy ensures the proper introduction of a market mechanism. this led to a shift in economic incentive for further development of farmers and increased economic productivity. a preliminary step was taken to ensure the widespread implementation of market mechanisms in agriculture, and the may 28, 2022, issue of the united nations declaration on the elimination of all forms of discrimination against women was adopted. the country's average grain yield in 2020 was 57 cents per hectare and 64 cents in 2021, reaching 6770 cents in 2022. over the past 3 years, more than three large private grain enterprises with a capacity of about 160 million tons have been launched in the regions, ensuring an increase in the share of the private sector in the industry. last year, the country produced about 3.5 million tons of flour, of which 54% was owned by private grain enterprises. this year, the minimum purchase price of 1 tonne of wheat by the government has been increased from 1.55 million gallons [1.55 million l] last year to 3 million gallons [3 million l] of 2022 crops, or almost double. grain clusters and farms benefited greatly from the timely decision. our current task is to establish a market mechanism for the production of cotton, to further improve the functioning of classrooms in agriculture, and to establish a system that provides clusters and government guarantees for the purchase of cotton. the growing support for entrepreneurs in the field of agriculture, the august 20 deadline for "entrepreneurs' day" and the awarding of representatives of the agricultural sector are a clear example of the growing attention paid to industry representatives. in an open dialogue with businesspeople, our president emphasized the importance of business development for the prosperity of our country and put forward initiatives to support representatives of this industry in five directions. analysis and results the first direction is to divide enterprises into categories and establish a separate approach to supporting them. (matthew 24:14; 28:19, 20) jehovah's witnesses would be pleased to support more than the amount of information provided these are: up to $1 billion (u.s.) in micro-business; up to 10 billion hours of small businesses; up to 100 billion hours (u.s.). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 256 www.americanjournal.org the second initiative is to expand the activities of our entrepreneurs, create a convenient financing system for implementing new projects. in this regard, $20 trillion (u.s.) will be directed to small business projects. the third direction is that lending is only one side of the issue, and it takes adequate conditions, infrastructure, and a guaranteed market for business to go. therefore, first of all, separate approaches are introduced for business based on the conditions of districts and cities. the fourth direction is the issue of protecting the property rights of entrepreneurs. from now on, the abolition of land and property allocation decisions is carried out only and only in a court order. summary decisions on property rights are not allowed to be overturned by the authorities, which means that only the court will be able to find the document authorizing it invalid. another practice that afflicts businesspeople is to memorize property during the investigation. for example, in the past 3 years, twice as much property has been memorized as the damage identified by investigators ($1,5 trillion). now the validity of each letter is considered by the court, the decision is made only by the court. the fifth direction is related to the control and accountability of entrepreneurs. a three-year moratorium on the introduction of new liability and penalties against entrepreneurs will be announced. references 1. law of the republic of uzbekistan "on family business". 2. resolution of the president of the republic of uzbekistan dated march 27, 2021 "on additional measures for the development of family business and the expansion of income sources for the population." 3. saidov s. o. and others. basics of economics and entrepreneurship. t.: fan, 2002. 4. afonina v.e. the impact of digitalization on the development of the agrarian sector of the economy // msh. 2018. №3. with. 15-17. 5. decree of the president of the republic of uzbekistan, pf6079 of 05.10.2020 6. decree of the president of the republic of uzbekistan, pf5742 of 17.06.2019 7. semin a.n., kislitskiy m.m., agnaeva i.yu., vorona v.y. otechestvennyy opyt formirovaniya local'nogo urovoy sel'skogo ekonomiki sredstva tsifrovykh tekhnologii [domestic experience in the formation of the local level of the rural economy by means of digital technologies]. 2018. №6. p. 7385. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 26 www.americanjournal.org mechanisms of organizing gastronomy tourism services and its development vafoxodjayeva dilafruz rahmatulloevna email: dilyatimson@mail.ru a b s t r a c t k e y w o r d s tourists, in particular, are interested in gastronomic tourism experiences after being happy with the site and local cuisine, resulting in destination loyalty. increased usage of local cuisine in the region's tourism economy strengthens the area's tourism offering while also potentially contributing to the district’s tourism growth. the study’s major focus is on the mechanisms of organizing gastro-tourism services and their development in uzbekistan. tourism, food tourist, gastronomic tourism, gastronomic tourism mechanisms, gastronomic tourism service, traveler. introduction given that the topic is food and drink, it includes topics such as nutritional sciences, wine production, the physiology of taste, the functions of nutritional components in the body, identifying qualities in food selection, and developing production processes that adhere to sanitation and hygiene standards to prevent food from spoiling physically, chemically, or biologically (shenoy, 2015). the goal of gastronomy is to maintain human health by providing the best nutrition possible while also ensuring enjoyment of life and eating; among the study topics of gastronomy are the production of food and beverages in sanitary environments and their preparation for consumption in a way that addresses palatal and visual pleasure. historians, explorers, and traders who visited samarkand, for example, described the city's magnificent gardens, delectable fruits, and national specialties. if we quickly discuss uzbek national food, specifically the national cuisine of the samarkand region and adjacent regions, the variety of dishes and desserts holds a special place due to their antiquity, vitamin richness, and force. pastries and cereals are popular national meals in uzbekistan. pastries were produced with flours derived from wheat, oats, corn, barley, and, in rare cases, millet, rye (italian millet), and lentils. (barley, lentils, millet, and flour are hardly used today. significance and scope of the study the value of gastronomy in promoting vacation destinations has received little attention until recently (petrou, 2016). there is a noteworthy lack of research on how much food is used in tourist promotion and development in areas where tourism success is frequently predicated on main attractions other than food (okumus, okumus, and mckercher, 2017). those that do include food in their tourism marketing and promotion typically do so ineffectively (okumus, 2017). given the highly competitive nature of today's tourism, samarkand must leverage its culinary and tourism potential to improve and market each local eating area truly and authentically. an analysis of linked literature reveals american journal of business management, economics and banking volume 21 february, 2024 p a g e | 27 www.americanjournal.org significant linkages between the food and tourism industries, as well as the potential for regional development benefits from these two businesses. local, distinct, and authentic meals that reflect the local culinary culture are frequently included in tourist dining experiences (björk and kauppinenräisänen, 2019). local food, as part of the cultural legacy of the geographical places visited by travelers, is an important element of the tourism experience. (berbel pinedaa, 2019). local gastronomy increases tourism experiences by connecting people to a place through authentic cuisine that reflects the destination's culture (chang, 2010). the term "culinary tourism" is appropriate, but it has been applied to both food and beverage tourism (wine tourism, beer tourism, coffee tourism, tea tourism, whiskey tourism) (getz, 2014). ignatov and smith (2006) further described culinary tourism as "tourism trips during which the purchase or consumption of regional foods (including beverages), or the observation and study of food production (from agriculture to cooking schools) represent a significant motivation or activity". as a result, the phrase "food tourism" is employed in this study to keep it simple, focused, and comprehensive, and to avoid any bias associated with other terms. the term "culinary tourism" is appropriate, but it has been applied to both food and beverage tourism (wine tourism, beer tourism, coffee tourism, tea tourism, whiskey tourism) (getz, 2014). ignatov and smith (2006) further described culinary tourism as "tourism trips during which the purchase or consumption of regional foods (including beverages), or the observation and study of food production (from agriculture to cooking schools) represent a significant motivation or activity". as a result, the phrase "food tourism" is employed in this study to keep it simple, focused, and comprehensive, and to avoid any bias associated with other terms. the study's primary focus is on the mechanisms for coordinating gastro-tourism services and their development in uzbekistan. literature review: nine key elements influence food choice in everyday situations: (1) health, (2) mood, (3) convenience, (4) sensory appeal, (5) natural content, (6) pricing, (7) weight control, (8) familiarity, and (9) ethical concerns. given the lack of empirical studies on tourist food consumption and the "obligatory" nature of food consumption in the context of tourism (mak 2002), the fcq provides a rather comprehensive set of motivational factors. motivation has also been identified in the tourism literature as a concept that has a major impact on visitor food consumption behavior (mak 2012). many studies have sought to shed light on the unique motivators that drive tourist food intake. fields (2002) further on the relationship between food intake and tourism using the typology of tourist motivators. he suggests four elements that influence food intake in tourism: physical, cultural, interpersonal, and status and prestige. secondly, food may be a physical motivation because eating is mostly a physical process that involves sensory perceptions to appreciate the meal or tourists' need for nutrition. second, food may be a cultural motivation because when tourists try different local foods, they are also experiencing a new culture. finally, food may act as an interpersonal motivation since holiday meals have a social role such as establishing new social relationships and reinforcing social alliances. third, local delicacies may be a status and prestige incentive, as tourists can gain knowledge of the local cuisine by eating like the locals and discovering new cuisines and foods that they or their friends are unlikely to experience back home. the sphere of restaurant service is one of the important sectors of the national economy, as well as a separate industry, the activity and development of which is reflected in the development of the national economy and contributes to american journal of business management, economics and banking volume 21 february, 2024 p a g e | 28 www.americanjournal.org more effective regulation of market relations. in this process, we can justify the need to develop and improve marketing strategies through: the need for regular study of the internal and external environment of the service market, the sphere of restaurant services in the context of accelerating socio-economic processes, and increasing competition. an analysis of the external environment allows us to determine the factors influencing economic growth and innovative development of the restaurant services sector; with the increase in the standard of living of the population, the demand for services related to eating and relaxing outside the home increases. in turn, based on the study of the restaurant services market conditions, it becomes necessary to analyze the state of demand and the factors that form it, for an objective assessment of the situation and forecast; as a result of computerization, the sphere of restaurant services is constantly being improved and the information capacity is increasing. the catering industry is a complex system that simultaneously includes such relationships as production, service, marketing, consumption organization, and entertainment. therefore, we propose to divide innovations into 5 groups based on the nature of the area. food invention (fig-1) in the catering industry, innovations in the manufacturing process are aimed at improving the dishes offered on the menu. although food innovation has not been widely adopted in the catering industry of our country, the development of international tourism and the global trend of innovation in the industry will further accelerate these processes in the future. the term food innovation is mainly production food innovation; new cooking technologies; service loyalty programs, crm technologies; receiving orders without queue; sales new format restaurants; modern style; new culinary technologies; fast food, fri-flo; unique and diet food mono-product restaurant, inviting customers to cooperate, mobile marketing, internet forum, chats, blogs, flash mob and various social channels and so on consumption healthy lifestyle; semi-finished and ready meals; street food; healthy eating; ecological food; national dishes; new format, unique recipe, molecular cuisine and more relaxation sensory marketing technology aromamarketing; aroma design, service landscape american journal of business management, economics and banking volume 21 february, 2024 p a g e | 29 www.americanjournal.org specific to marketing practice, and in the restaurant industry, it is explained by the extended marketing mix. according to the traditional approach, the products or goods of the restaurant are food and drinks. for each restaurant, food is of paramount importance, and its cost or price on the menu may differ from each other. such added value is primarily created through the use of new cooking technologies or the professional skills of chefs, as well as the skills of staff, such as designing and creating works of art. in addition, the dishes should correspond to the equipment, architectural structure, name, and interiors of the restaurant. to achieve food innovation, it is desirable to implement the following: create a new recipe, making the appearance of dishes and drinks more attractive; improvement of cooking technology; ‒ effective distribution of powers between service providers and expansion of their rights, duties, and responsibilities (х.тораев, and х.х. я. турдибеков, 2020). research methodology: the study on why tourists chose gastronomy tourism was a qualitative study that examined and collected data from document research and interview research. this section will include the study's methodology, study area, and data collecting, as well as data analysis. the goal of this study is to contribute to existing research on gastronomic experiences in tourism. its primary purpose is to investigate passengers' interests and motivations concerning uzbek indigenous cuisine during their travel, as well as any analysis of mechanisms of organizing cuisine tourism services and its development in uzbekistan. the qualitative technique used in this study is based on fieldwork with a representative sample of visitors who visited local restaurants in uzbekistan to learn about their perceptions of cuisine and motivations, as well as mechanisms of organizing gastronomy tourism services and its development. the most important element of qualitative techniques, according to alvehus (2013), is that they use words or meanings rather than statistically confirmed facts. simultaneously, the qualitative technique is about uncovering relationships, and just because it's qualitative doesn't mean numbers are useless. its definition emphasizes how humans interpret the environment around them. furthermore, scientists believe that exploring certain topics from an indepth interpretation of reality within a given group's members is preferable to adopting an already existing theoretical model, as is common in quantitative procedures. academics are more interested in the answer to the question "why" rather than "how many" in this case. this emphasizes the need to conduct field research using methods such as unstructured interviews, participatory discoveries, heuristic techniques, and shadowing. (glaser and strauss, 2009). qualitative research information provides user experiences, tastes, goals, habits, and a range of other types of information that are vital in developing a product that will fit into a consumer's life. the goal of qualitative analysis is to analyze the subjective meaning or social output of persons, events, or activities through non-standardized data collection and frequent examination of text and images rather than numbers and statistics. (flick, 2014). based on woodman (2014), the qualitative investigation takes a different approach to themes than the methodologies indicated above. it is founded on the fundamental notion that "reality" is subjective: each human being constructs a unique, personal view of how the world works based on his or her unique interactions with it. (including the people who are part of it). as a result, the majority of what people, even academics, regard to be reality is a collection of impressions, judgments, and american journal of business management, economics and banking volume 21 february, 2024 p a g e | 30 www.americanjournal.org views in each person's mind. hawking and mlodinow (2018) proceeded even further, claiming that there exists nothing known as unbiased reality because of the viewpoint of people interacting with their surroundings: what a person perceives as "reality" is a model established by that person based on observation and interpretation of events. result and discussion: results gathered from individual face-to-face interviews with 10 international visitors eating at various restaurants on m. koshgari street in samarkand, uzbekistan, are presented in the next section. the interview transcripts were analyzed using theme analysis throughout the interview review. expletory analysis is a type of qualitative data analysis that is typically used to study a succession of texts, such as an interview transcript. the interviews were verbatim transcribed. first, all interview text forms were stored on a computer once the recorded voice was transformed into text. the most frequently recurring words were then chosen and labeled as important themes. a summary of the interview assessment revealed four primary themes, which were characterized as follows: 1) motivation for travel and food selection; 2) preference for traditional versus quick food; 3) hygiene and sanitation in local eateries; and 4) benefits and drawbacks of uzbek cuisine. all of these themes will be presented and analyzed in terms of beliefs, experiences, and feelings by evaluating responses to the offered questions. the four important areas mentioned above contributed to the study questions and provided valuable information to help uzbekistan's gastronomic tourism development. in today's competitive marketing environment, marketing destinations are a complicated phenomenon with numerous obstacles and diverse aims and expectations; and local cuisines are unique sources to create, launch, and advertise a destination (uner, 2014). tourists visiting a site should be immersed in regional culture in all areas when it is recognized that gourmet tourism is a necessary and reflective element of creating and marketing a destination. gastronomic tourism activities carried out at a place give direct and indirect employment as well as financial benefits (sahin, 2015). based on interview analyses most of the respondents regardless of country, some of the tastiest foods guests have tasted have come from folks with the most modest mentality. there are regions in uzbekistan where the most primitive people produce the greatest food. of certainly, some traditional cuisines will motivate them to return to uzbekistan again. food plays an important role in a country's culture, and while on vacation, travelers want to try the local cuisines of the place, so the tourism industry as a whole will continue to grow, and food tourism will thrive as travelers seek more experiences and a better understanding of the local culture of their destinations. most respondents stated that their motivation is based on food flavor or local culinary experiences. tourists remember the place not only via local attractions but also through the flavor of the food. motivation has been identified as one of the most important factors influencing different food intake practices. conclusion and recommendations: tourists emphasize that food hygiene is concerned not only with the hygiene of the food itself, but also with the cleanliness of the food contact surfaces, which include factories, utensils (forks, spoons, saucers, knives), which uzbekistan has little trouble with, food processing equipment, packaging, as well as people hygiene, food processor hygiene, and even consumer hygiene. tourists participate in food-related activities throughout their travels, such as purchasing local goods and sampling local cuisine. this may be your primary or secondary reason for traveling. modern visitors are often american journal of business management, economics and banking volume 21 february, 2024 p a g e | 31 www.americanjournal.org looking for culinary experiences, unique meals, and opportunities to participate in food-related cultural practices. food tourism differs from typical food consumption in that it offers several opportunities to create foodand beverage-related narratives regarding important parts of local culture, such as its history and local attractions. food tourism gives visitors authentic experiences. these themes show that food tourism is becoming a global phenomenon, with significant ramifications for destinations. destinations promote significant growth of food tourism, which has become one of the most active components of their tourism business, through effective and profitable marketing and development tactics. foodies and food tourists must therefore be considered when designing, developing, and promoting food tourism. previous research focused primarily on local food consumption or customer behavior towards food products or services. finally, company leaders concur on the importance of creating collaboration tools among all local participants in the culinary tourism value chain, both in terms of conceptualization and product offer development and promotion. first and foremost, having more interviewers or participants would make it more interesting. making a comparison is another method to extra study. another area for future research could be to examine the motivation of food tourists (both international and domestic) and identify initiatives to increase environmental education. questions must be presented in many languages. references: 1. berbel-pineda, j.m.; palacios-florencio, b.; ramírez-hurtado, j.m.; santos-roldán, l. gastronomic experience as a factor of motivation in the tourist movements. int. j. gastron. food sci. 2019, 18, 100171. 2. testa, r.; galati, a.; schifani, g.; di trapani, a.m.; migliore, g. culinary tourism experiences in agri-tourism destinations and sustainable consumption—understanding italian tourists’ motivations. sustainability 2019, 11, 4588. 3. zada, m.; zada, s.; ali, m.; zhang, y.; begum, a.; han, h.; ariza-montes, a.; araya-castillo, l. contribution of small-scale agroforestry to local economic development and livelihood resilience: evidence from khyber pakhtunkhwa province (kpk), pakistan. land 2022, 11, 71. 4. zada, m.; zada, s.; khan, j.; saeed, i.; zhang, y.j.; vega-muñoz, a.; salazar-sepúlveda, g. does servant leadership control psychological distress in crisis? moderation and mediation mechanism. psychol. res. behav. manag. 2022, 15, 607. 5. payandeh, e.; allahyari, m.s.; fontefrancesco, m.f.; surujlale, j. good vs. fair and clean: an analysis of slow food principles toward gastronomy tourism in northern iran. j. culin. sci. technol. 2022, 20, 51–70. 6. moral-cuadra, s.; acero de la cruz, r.; rueda lopez, r.; salinas cuadrado, e. relationship between consumer motivation and the gastronomic experience of olive oil tourism in spain. sustainability 2020, 12, 4178. 7. zada, m.; zada, s.; ali, m.; zhang, y.; begum, a.; han, h.; ariza-montes, a.; vega-muñoz, a. development of local economy through the strengthening of small-medium-sized forest enterprises in kpk, pakistan. sustainability 2021, 13, 10502. 8. hernandez-rojas, r.d.; folgado-fernandez, j.a.; palos-sanchez, p.r. influence of the restaurant brand and gastronomy on tourist loyalty. a study in córdoba (spain). int. j. gastron. food sci. 2021, 23, 100305. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 32 www.americanjournal.org 9. agyeiwaah, e.; otoo, f.e.; suntikul,w.; huang,w.-j. understanding culinary tourist motivation, experience, satisfaction, and loyalty using a structural approach. j. travel tour. mark. 2019, 36, 295–313. 10. zada, m.; shah, s.j.; yukun, c.; rauf, t.; khan, n.; shah, s.a.a. impact of small-to-medium size forest enterprises on rural livelihood: evidence from khyber-pakhtunkhwa, pakistan. sustainability 2019, 11, 2989. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 1 www.americanjournal.org improving efficiency by applying innovations in the livestock sector in uzbekistan siddikov zahid tulkunovich independent researcher, tashkent state agrarian university, uzbekistan e-mail: nurali57@mail.ru a b s t r a c t k e y w o r d s the article presents the ways to increase productivity by applying innovations in livestock farming. animal husbandry is one of the leading sectors of agriculture in uzbekistan. meat, milk and egg products of the population provide industry with leather, wool and other raw materials. at present, when market relations are being formed, providing the population of the republic with high-quality, ecologically clean and cheap livestock products is one of the important tasks. there are many branches of animal husbandry, such as cattle breeding, sheep breeding, poultry breeding, sheep breeding, fishing, and beekeeping. therefore, the main tasks of the development of these industries are to establish a solid feed base, to continuously provide livestock with various servitamin, proteinrich, nutritious feeds throughout the year, to properly organize breeding-selection work, from advanced work experiences and achievements in science. effective use, new techniques that save costs, increasing the level of mechanization and automation of production processes as a result of the introduction of innovative and effective technologies, the widespread introduction of modern advanced technologies into practice and the specialization of farms in the formed production, and other factors were taken into account. test examples are provided. agriculture, innovation, economy, farm, feed, nutritious crops, logistics, productivity, animal husbandry, meat, milk and egg products, industry, leather, wool, plant breeding, cattle breeding, sheep breeding, poultry, livestock, fisheries, beekeeping introduction agriculture, especially animal husbandry, plays an important role in the sustainable development of the economy. in our country, meeting the needs of the population for livestock products, ensuring the availability of meat, milk, eggs, fish and other products in the markets is considered as one of the priority tasks. animal husbandry is an important component of the country's agriculture. appropriate and effective placement of livestock industries directly affects the positive solution of labor distribution in the american journal of business management, economics and banking volume 22 march 2024 p a g e | 2 www.americanjournal.org republic. taking into account the natural and economic conditions of the regions and the market requirements, it is necessary to place and develop the branches of cattle breeding, sheep breeding, fishing, beekeeping, and duck breeding. because meat, milk, wool, leather, honey and other products are grown for food and processing industry enterprises in these sectors. production and consumption of meat and milk per capita in the republic is below medical standards. it cannot provide the necessary amount and standards for the human body. therefore, the government of the republic has adopted large programs, laws, decisions and various regulatory documents aimed at the development of livestock breeding in the country, and is implementing a number of measures to implement them. as a result of gradual reforms in the agricultural sector of our country, the process of increasing productivity by applying innovations in farms specializing in animal husbandry was carried out [4,5]. in this, the availability of labor resources of the regions of the country, the specialization of farms in animal husbandry and other factors were taken into account. 2. literature review: the great achievements in agriculture are the result of well-thought-out and consistent measures implemented by our government, taking into account the specific characteristics of our republic and the accumulated rich experiences, as well as the best practices of world practice. there are many branches of animal husbandry, such as cattle breeding, sheep breeding, poultry breeding, sheep breeding, fishing, and beekeeping. therefore, the main tasks of the development of these industries are to establish a solid feed base, to continuously provide livestock with various servitamin, protein-rich, nutritious feeds throughout the year, to properly organize breeding and selection work, to use advanced work experiences and achievements in science. effective use and wide introduction of modern advanced technologies into practice. the great achievements in agriculture are the result of well-thought-out and consistent measures implemented by our government, taking into account the specific characteristics of our republic and the accumulated rich experiences, as well as the best practices of world practice. the number of livestock and poultry in the republic of uzbekistan by all economic categories is presented in table 1. table 1 the number of livestock and poultry by all economic categories in the republic of uzbekistan (a thousand heads) indicators 2018 year 2019 year 2020 year 2022 year 2022 year to 2018 relative to in percent, % cattle with large horns 12181,4 12471,0 12814,1 12949,7 106 including: farms 575,8 615,9 662,2 708,3 123 dekhan farms 11461,2 11675,4 11983,3 12071,7 105 organizations performing agricultural activities 144,4 179,7 168,6 169,7 117 also cows 4217,3 4336,5 4626,0 4663,5 110 including: farms 193,9 210,3 230,1 249,6 128 dekhan farms 3983,3 4085,0 4351,2 4366,4 110 agricultural enterprises 39,9 41,2 44,7 47,5 119 american journal of business management, economics and banking volume 22 march 2024 p a g e | 3 www.americanjournal.org sheep and goats 19697,9 20640,9 21580,5 21906,9 111 including: farms 1518,9 2166,9 2461,7 2691,8 177 dekhan farms 16516,5 17369,9 18034,7 18064,1 109 agricultural enterprises 1662,5 1104,1 1084,1 1151,0 69 birds 67037,7 74870,1 86374,8 87859,7 131 including: farms 7745,6 9263,2 12146,8 12299,1 122 dekhan farms 41568,1 44197,0 47637,2 51611,2 124 agricultural enterprises 17724,0 21409,9 26590,8 23949,4 135 proper organization of the production of concentrate feed in our country and its delivery to consumers is an urgent issue of today. 90 percent of the meat and milk produced in our country is produced on farms. in order to improve the supply of concentrate feed to farms producing livestock products, it is necessary to organize fodder sales branches in the regions with the participation of feed producing enterprises, and to optimize the types of payment in the branches. livestock development is one of the first level tasks facing agriculture. to successfully solve this task, the following complex measures have been developed: establishment of a solid fodder base of livestock breeding and rational use of fodder; breeding of all types of livestock and poultry; improvement of breeding work in cattle breeding in order to increase the productivity of herds and to adapt cattle to feed on the basis of industrial technology; improving the use of veterinary services and artificial breeding services due to the expansion of the network of service points; personal assistant, organizing auctions for the sale of breeding stock to farmers and farms. expansion of micro-crediting possibilities of auxiliary and peasant farms to facilitate the purchase of cattle, creation of new breeds of livestock and improvement of existing breeds, development of theoretical and practical methods for management of various fields of livestock breeding, and on this basis, giving ample space to the work experience of advanced zootechnics and animal husbandry in the introduction of rational methods of breeding and feeding of livestock. it has been scientifically proven that about 60% of the increase in milk productivity of cows depends on the feeding factor. based on this, the demand for feed during the year is 30-35 centners of feed units for each conditional head of the population, 45-50 centners of feed units for breeding cattle, foreign 55-60 centners of feed for cattle of the mentioned breeds. on the basis of the achievements of science and advanced experience, to ensure that the yield of nutritious crops from each hectare of the main crop area is 6-7 tons of feed units, from intermediate crops to 4-5 tons of feed units and from repeated crops to 3-4 tons of feed units, a total of 8-10 tons of feed units necessary. in order to increase the productivity of food crops, it is recommended to use high-yielding varieties and hybrids and to introduce advanced technologies. currently, one of the main factors of increasing livestock production is the wide implementation of modern advanced technologies in personal assistants, farmers and farms. american journal of business management, economics and banking volume 22 march 2024 p a g e | 4 www.americanjournal.org introduction of modern technology and scientific achievements in the field for the comprehensive development of animal husbandry, increasing the level of use of equipment, raising the quality of human capital is one of the important issues of today. to sustainably ensure the needs of the population of the republic for food products, to fill the domestic consumer market with food products produced in our country, to rapidly establish compact processing enterprises equipped with modern high-performance equipment and technology, mainly in rural areas, on this basis, new work in the regions of the republic for the purpose of forming places, providing more people with work, increasing their income and well-being the activity of processing meat and dairy products on an industrial scale and producing finished products will be carried out only by business entities organized in the form of a legal entity. the level of milk production can be increased by 30% by artificial insemination with productive bulls. calves obtained as a result of artificial insemination can reach a live weight of 410-450 kilograms in 15-16 months if intensively fed from the age of 7-8 months, which increases the level of meat production by 30%. . equipping soft feed factories with innovative technologies for the production of quality feeds can reduce energy and labor costs by up to 30 percent. this, in turn, leads to a decrease in the price of fodder. the availability of quality and affordable feed increases the purchasing power of economic entities. livestock fed with high-quality feed will increase productivity, save heifers' calving time, and reduce the cost of female bodies during the period before parturition. an investment in a single service sector in animal husbandry has an impact on the overall development of the sector. [1-2]. the application of innovation to the livestock processing industry creates an opportunity to produce high-quality exportable products. application of innovative technology reduces energy consumption and manual labor costs. product export increases the company's income and creates an opportunity to expand production and provide financial incentives to employees. such an environment is also formed in product suppliers. the norm of daily use of carbon mineral nutrient supplement is given in table 2. table 2 the rate of daily use of carbon mineral nutrient supplement № indicators 1 day per head of cattle (grams) 1 for large horned cattle 275-570 2 calves from 1 to 6 months 65-130 3 calves are 7 to 12 months old 150-270 innovative technologies are used in livestock development in farms. carbon mineral feed supplement "felutsen" is used in the feed. table 3 below shows the effect of carbon mineral feed additive "felutsene" on animal live weight. american journal of business management, economics and banking volume 22 march 2024 p a g e | 5 www.americanjournal.org table 3 effect of carbon mineral feed additive "felutsene" on livestock live weight № months group control experience х+sx cv, % х+ sx cv, % 1. before the experiment 334,0 ± 4,7 4,7 336,0 ± 3,6 3,8 2. 1 358,0 ± 4,4 4,34 366,2 ± 3,8 3,6 3. 2 384,0 ± 4,8 4,0 398,4±3,7 3,4 4. 3 414,3±4,2 3,9 431,8 ±4,6 3,6 5. changes in livestock live weight 80,3 95,8 an additional gain of 80.3 kg was achieved when cattle were fed on a normal feed ration and 95.8 kg of additional growth was achieved when fed with feed supplemented with umo. through the comprehensive innovative development of animal husbandry, it is possible to increase the amount of production in animal husbandry and significantly reduce the cost of products. table 4 analyzes the performance of cattle fed with carbon mineral feed additives. table 6 performance of cattle fed with carbon mineral feed additives (per head of livestock) № indicators in a normal feed ration feed with added umo additives the difference (+; -) 1. additional growth (kg) 80,3 95,8 15,5 2. cost of goods sold. (soum) 521950 620100 98150 3. cost (soums) 438580 505620 67040 4. profit (soum) 83370 114480 31110 5. rate of return (%) 19 23 the yield rate of cattle fed on a normal feed ration was 19% compared to 23% when fed with feed supplemented with umo, and the yield rate increased by percent when cattle were fed with feed supplemented with umo. as a result of innovative technologies, livestock efficiency increases, the profit of the farm increases, the cost decreases, and synergistic efficiency increases. in order to reduce the cost of products and achieve high synergistic efficiency in personal assistants, farmers and farms producing livestock products, it is necessary to implement the following: complex mechanization, increasing labor productivity; consistent intensification, increasing livestock productivity; to improve the use of working capital, to maximally reduce the consumption of feed for the production of one unit of product; improvement of product quality, organization of production of goods; centralization of networks, proper organization of specialization and deployment; consistent application of best practices and scientific achievements; commercialization of the field, strengthening of cooperative relations between product manufacturers; to save labor and material funds, reduce research spending, administrative management costs and other unnecessary costs as much as possible. american journal of business management, economics and banking volume 22 march 2024 p a g e | 6 www.americanjournal.org in order to achieve synergistic efficiency in animal husbandry, it is necessary to ensure the parallel development of several factors affecting the development of animal husbandry. summary to ensure economic stability in animal husbandry, to try to spend every soum rationally and appropriately, that is, to save material, money and labor costs, thereby reducing the cost of the products grown, to use all the means of production available in the animal husbandry network effectively throughout the year, to ensure that all work is done at the right time, with high quality implementation of productive breeds of livestock, reducing the disparity between the prices of industrial enterprises used in agriculture and agricultural products, increasing the level of mechanization and automation of production processes and reducing the cost of live labor as a result of the introduction of new cost-saving techniques, innovative and effective technologies, zooveterinary activities should be carried out qualitatively and efficiently. references 1. galimova f.r., dekhkanova n.s., narinbaeva g.k. management in agriculture. textbook. t.: tdau, 2020. pages 231-242. 2. samatov g'.a., rustamova i.b., sheripbaeva u.a. agricultural economics and management. t.: "cholpon" 2016. pages 192-198. 4. g.narinbaeva f.islamov.s.davlatov.g.ergashev current state of animal production in the republic of uzbekistan" international journal of international journal of research culture society: impact factor: 5.245 – india, 2019. – #3(1) pp. 1278-1282. 5. g. narinbaeva the current state and efficiency of land use in farms of the khorezm region. research culture society: impact factor: 5.245 – india, 2020. – #2(1) pp. 1198-1202. 6. toshboev a.j., i.e. rafikov, azizkulov b. ways of using resource-saving technologies in the maintenance of agricultural crops. recommendation-t.: tashdau, 2018, pp. 60-64. 13. statistical data of the statistics committee of the republic of uzbekistan for 2017-2020. pages 26-36. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 205 www.americanjournal.org issues of raising the tax compliance culture ochilov adkham muzaffarovich researcher, research center “scientific bases and problems of the development of the economy of uzbekistan” under the tashkent state university of economics a b s t r a c t k e y w o r d s this research article is devoted to the consideration of the issues of raising the tax compliance culture. by determining the most advanced practices, highlighting the impact of specific legislative changes, as well as making recommendations, this study contributes to ongoing improvements in optimizing tax systems globally. the research findings may be particularly relevant to practitioners seeking to strike a balance between revenue generation objectives and fostering a tax environment that encourages voluntary compliance. tax obligations, taxes, levies, tax evasion, taxation. introduction currently tax compliance is crucial to the economic well-being of any country. it is the responsibility of citizens and businesses to do their fair share to finance essential public services and infrastructure. while tax evasion remains a persistent problem, governments around the world are increasingly recognizing the importance of developing the tax compliance culture. this study investigates efficiency of efforts to promote the tax compliance culture and its impact on fiscal responsibility. efficiency of tax systems depends not only on legal frameworks and enforcement mechanisms, but also on voluntary compliance by individuals and business entities. in recent years, there has been a growing demand among politicians and scientists for the need to educate the culture of tax compliance a social ethic that goes beyond simple legal obligations and encourages citizens to willingly fulfill their tax obligations. the issue of executing tax obligations is multifaceted and includes economic, psychological and sociological aspects. traditionally, the focus has been on punitive measures and enforcement strategies to combat tax evasion. however, the paradigm shift toward preventive and proactive approaches has accelerated. fostering a culture in which tax compliance is treated as a civic duty and social norm has emerged as a key strategy in the arsenal of policymakers aiming for sustainable fiscal responsibility. the significance of this study lies in its ability to address gaps in the existing literature and provide a comprehensive understanding of the factors influencing tax compliance culture. as governments around the world grapple with the challenges of revenue collection and economic sustainability, insights from this research can help shape effective policies and strategies. in addition, the study aims american journal of business management, economics and banking volume 20 january, 2024 p a g e | 206 www.americanjournal.org to contribute to the theoretical foundations of tax compliance behavior by enriching academic debates in economics, psychology, and sociology. literature review it should be noted that much research is being done in this focus area and the importance of creating a culture for tax compliance is increasing. education plays an important role in shaping a person’s behavior, values and attitudes. the more taxpayers know about the tax system and the significant role it plays in their daily lives, the more willing they are to support it (a.cirman et al., 2021). according to t. engida and g. baisa (2014), literate taxpayers may have more information about the ways to avoid paying taxes, but they have a better understanding of the tax system and their level of development helps them to be more comfortable with taxes and to strengthen compliance with tax laws. in addition, priority should be given to training young people as future tax payers (oecd, 2021). a. cirman et al. (2021) and oecd (2021) emphasize that education and involvement of young people in various forms of financial activity will foster the “culture of compliance” to support the growth of public financial revenues by understanding the role of taxation, as well as their rights and obligations. according to a.cirman et al. (2021), education is a way of empowering taxpayers by providing them with the knowledge and tools they need to better understand the tax system and by enhancing their tax morale, resulting in improved tax compliance. thus, taxpayer education initiatives can be an effective way to build trust and increase public activities. these initiatives raise people’s commitment to the common good, emphasize the social value of taxation and its relation to public spending (oecd/fiiapp, 2015). new initiatives of the taxpayer education and communication can encourage future taxpayers to be more ethical when paying their taxes, explaining why it’s important for everyone to pay their fair share (european commission, 2017). from the point of view of a.cirman et al, (2021), educating young people can be a lever that raises the national tax culture and has a constructive effect on the country’s tax compliance and tax morale. previous studies have shown that, in addition to tax education, knowledge of tax regulations makes a significant impact on taxpayers’ compliance behavior. in the opinion of k. bandara, v. weerasooriya (2021), people who have more knowledge about tax law, appreciate the importance of taxes and thus increase government revenue from the tax sector. taxpayer awareness of the significance of filing and paying taxes on time is also essential to ensure tax compliance. our overall opinion formulated in reliance upon the literature review is that understanding tax compliance requires a multidisciplinary approach that integrates economic, psychological, and sociological perspectives. several theories have been developed to explain and predict tax compliance behavior, each providing unique insights into the factors influencing individuals and businesses. analysis and results economic sustainability is based on the government’s ability to provide a stable and consistent revenue stream. a robust tax compliance system enhances predictability, enabling governments to plan and implement fiscal policy with some degree of certainty. when citizens and businesses meet their tax obligations, governments can avoid budget deficits, reduce reliance on debt financing, and american journal of business management, economics and banking volume 20 january, 2024 p a g e | 207 www.americanjournal.org maintain fiscal discipline. this, in turn, raises an investor confidence, improves economic stability and creates an environment conducive to sustainable growth. tax liability is not only an economic obligation, it is a social contract that ensures provision of essential public services and supports the welfare of citizens. public welfare encompasses a wide spectrum of social needs, including education, health, social welfare and infrastructure development. these services are closely connected with tax revenue. when citizens and businesses fulfill their tax obligations, governments can allocate resources to social programs that address inequality, expand access to education and health care, as well as provide a safety sphere for the vulnerable layers of the population. hence, tax compliance directly contributes to creating a fair and inclusive society that shares all the benefits of economic development. on the contrary, non-fulfillment of tax obligations poses a great threat to economic sustainability and public welfare. this, in turn, may require austerity measures, an increase in public debt, or a reduction in investment in critical sectors, which will make a negative impact on economic sustainability and public welfare. furthermore, the burden of non-compliance often falls disproportionately on the most vulnerable members of society. inadequate financing of social programs can result in the lack of access to quality education, health and social services, which can perpetuate cycles of poverty and inequality. actually, tax compliance is a key driver of community development, linking economic sustainability and social welfare. a culture of responsible tax compliance lays the groundwork for a thriving economy that ensures a steady flow of resources to meet the multifaceted needs of the population. the crucial role of education in shaping social attitudes and behavior extends to the area of tax compliance as well. theoretical frameworks such as the theory of planned behavior and social learning theory provide an understanding of how educational initiatives affect individual attitudes, subjective norms, and perceived behavioral controls for tax compliance. by eliminating the lacks in knowledge, dispelling misconceptions, as well as promoting a sense of civic duty, education acts as a catalyst for positive tax compliance behavior. figure 1. components of efficient tax education1 1 developed by the author in reliance upon the literature analysis financial literacy legal insight ethical consideration s civic duty and social norms american journal of business management, economics and banking volume 20 january, 2024 p a g e | 208 www.americanjournal.org as illustrated in figure 1, efficient tax education includes a number of components, including: ➢ financial literacy – education to empower individuals with financial literacy to understand the impact of taxation at the individual and society level; ➢ legal insight clarifying tax laws, regulations and obligations to eliminate confusion and encourage informed decision making; ➢ ethical considerations bringing together discussions on the ethical aspects of tax compliance, fostering a sense of responsibility beyond legal authority; ➢ civic duty and social norms instilling a sense of civic duty and emphasizing the social benefits derived from tax payments, thus establishing tax compliance as a social norm. in general, the transformative power of education in developing the tax compliance culture is great. by equipping individuals with knowledge, inculcating ethical reasoning and emphasizing civic responsibility, education emerges as a key factor in collective efforts to promote the tax compliance culture. analysis of educational initiatives makes a significant impact on tax law awareness and behavior. quantitative results demonstrate a statistically significant increase in participants’ awareness and positive changes in attitudes toward tax legislation. qualitative insights emphasized essentiality of promoting financial literacy, explaining legal obligations, and instilling a sense of civic duty through educational programs. moreover, transparency of the tax policy has been revealed as a decisive factor influencing compliance with the tax legislation. providing clear information about tax obligations and the rationale behind tax policies is positively associated with increased voluntary compliance. in addition, technology integration has streamlined processes and reduced inadvertent non-compliance. research demonstrates that the combination of transparent policies and technological advances enhances perception of fairness and fosters a culture in which individuals and businesses willingly comply with their tax obligations. on the other hand, enforcement and deterrence mechanisms play a dual role in tax compliance. although strict enforcement and deterrent penalties are associated with reductions in willful noncompliance, a punitive approach alone may not be an adequate measure. the integration of both enforcement and incentives in a comprehensive framework has emerged as a balanced strategy for developing a strong culture of tax compliance. fostering a culture of tax compliance requires a comprehensive approach that combines education, transparency, technology, fairness and effective execution. the society that understands significance of taxes believes in the fairness of the system and sees the benefits of compliance can contribute to the financial stability of its country. as governments continue to refine their strategies to promote a culture of tax compliance, they are paving the way for sustainable economic development and the delivery of essential public services. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 209 www.americanjournal.org table 1. strategy to improve the tax compliance culture2 measures outcome financial literacy development improving tax literacy starts with informing and explaining significance of taxes to the population. it is important that governments invest in education to educate citizens about the benefits of paying taxes and the consequences of tax evasion. such initiatives contribute to fostering a sense of civic duty and responsibility. transparent tax policy openness and transparency of tax policies are essential to encourage compliance. when tax laws and regulations are simple and understandable, individuals and businesses can willingly comply. governments should try to simplify the tax code and communicate the changes effectively, reducing confusion and willful non-compliance. technology and automation the integration of technology and automation in tax systems can simplify processes and make it easier for taxpayers to fulfill their obligations. automated systems can reduce errors, improve efficiency, and provide a more convenient user experience. in addition, the technology can be used for data analysis to identify potential tax evasion cases and prevent individuals and businesses from attempting to evade taxes. fair taxation fairness in taxation is crucial to ensuring compliance with the law. citizens are more likely to comply with tax laws if they believe that the tax burden is fairly distributed in society. governments must continually evaluate and adjust tax policies to ensure they are progressive and do not disproportionately burden certain groups. this helps intensify confidence in the tax system and encourages voluntary compliance. efficient execution and prevention while developing a culture of tax compliance is important, execution remains a crucial factor. governments must have effective mechanisms to detect and punish tax evaders. publicizing successful sanctions or punishment measures can act as a deterrent to tax evasion. striking a balance between incentives and execution is critical to a comprehensive approach to the tax legislation. incentives for compliance governments can introduce incentives to reward compliant behavior. this may include tax incentives, deductions or other incentives for individuals and businesses that consistently meet their tax obligations. providing positive reinforcement can contribute to a culture where tax compliance is not only a legal requirement, but a socially approved standard. summarizing the research results we can emphasize the important role of educational initiatives in raising awareness and creating positive attitudes towards tax compliance. the combination of transparency in tax policy and technological progress is considered as an essential tool in creating a tax environment characterized by equality and fairness. a well-reasoned integration of enforcement measures and incentives appears to be a rational and coherent strategy that encourages compliance while mitigating excessive burdens on taxpayers. 2 developed by the author american journal of business management, economics and banking volume 20 january, 2024 p a g e | 210 www.americanjournal.org conclusion the impact of the established policy resonates with a clarion call for government structures to prioritize tax literacy initiatives, strengthen transparency frameworks, make smart use of technological advancements, as well as undertake proactive steps to strike a harmonious balance between fiscal obligations and incentives. the recommendations outlined here support a synergistic and collaborative paradigm, involving educational institutions, businesses and citizens in collective action to promote a pervasive culture of tax compliance. challenges identified include uncovering cultural complexities, ensuring the inclusiveness of initiatives, and ameliorating potential gaps in technological assimilation. however, these challenges present opportunities to create a tax infrastructure that not only achieves fiscal goals, but also enhances economic stability and social welfare. the research results justify the fact that development of tax compliance ethics goes beyond the scope of government privileges and becomes a society. it will require a symphony of efforts by politicians, educators, businesses and citizens. it requires constant discourse, flexibility, and a collective commitment to the principles of objectivity, transparency, and civic conscience. at the end of the discussion, it is necessary to emphasize that the fulfillment of tax obligations is not only a legal necessity; rather, it undertakes a collective agreement for the prosperity and well-being of the people of uzbekistan. this will eliminate tax evasion in the future and result in the economic stability in the future. references 1. bandara k. a. g., weerasooriya w. m. r. b. (2021). a conceptual research paper on tax compliance and its relationships. international journal of business and management, 14(10), 134–134. https://doi.org/10.5539/ijbm.v14n10p134 2. cirman a., pahor m., starček s. (2021). addressing evasion and tax morale by educating young taxpayers. eduvision38. 3. engida t. g., baisa g. a. (2014). factors influencing taxpayers’ compliance with the tax system: an empirical study in mekelle city. ethiopia. ejtr, 12, 433. 4. european commission. (2017). european semester thematic factsheet taxation. retrieved november 12, 2021, from https://ec.europa.eu/info/sites/default/files/file_import/europeansemester_thematic-factsheet_taxation_en_1.pdf 5. oecd. (2021). building tax culture, compliance and citizenship: a global source book on taxpayer education (2nd ed.). oecd publishing. 6. oecd/fiiapp. (2015). building tax culture, compliance and citizenship: a global source book on taxpayer education. oecd publishing. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 45 www.americanjournal.org theory and analysis of human capital djuraev umid djumaevich university of science and technologies teacher of the "economics" department a b s t r a c t k e y w o r d s this article discusses the theory and analysis of human capital in the areas of economics, the emergence, formation, problems, economic category, management, development and dissemination of the modern concept of human capital. human capital, resources, global, world economy, economic category, professional, assets, labor, enterprise, intellectual management. introduction currently, the most developed countries of the world are distinguished by the transition to a new type of society based on the production and distribution of new knowledge and information on a global scale post-industrial or information society. as a subject of the world economy, the demands on the human person not only to perceive previously accumulated knowledge, but also to create new ones are constantly increasing. in the post-industrial stage of society's development, human productive forces work and multiply in the form of human capital knowledge and creative abilities, the costs of their accumulation and development are considered as capital investments that contribute to the growth of labor productivity and income. the emergence of the modern concept of human capital, first of all, t. schultz and g. it is related to the works of becker. well-known american and british economists b. weisbrod, j. mintzer, l. turow, v. bowen, m. fisher, j. the preachers were the great contributors. further development of this concept was done by a. aulin, m. blaug, s. bowles, j. ben-porat, m. woodhall, j. grayson, e. denison, s. daisy, j. kendrick, r. layard, g. psaharopoulos, and done by other researchers. the formation of the theory of human capital took place in parallel with the evolution of approaches to personnel management from a "professional" and "social" person to a "developing" and "initiative" person. the theory of human capital was developed in the modern concepts of human resources management, in the concepts of intellectual and social capital development of the enterprise. modern problems of human resources and human capital development are also studied within the framework of the concepts of information society and knowledge economy. the study of human capital problems in the economy of the cis countries has long been limited to the issues of education economy and labor efficiency. also v.s. goilo, a.v. dainovsky, r. p. kapelyushnikov, v. v. klochkova v. v. martsinkevich published publications that studied foreign american journal of business management, economics and banking volume 20 january, 2024 p a g e | 46 www.americanjournal.org approaches to the theory of human capital. later on the formation and movement of human capital by m.m. kritsky, e.v. galaeva, a.i. dobrinin, s.a. dyatlov, e.d. tsyrenova, i.v. ilinsky, s.a. kurgansky, v.p.-shchetin on educational problems and its role in increasing human capital, g.v.borisov on the human capital of the enterprise, n.v.kazakova, l.g.simkina, t.e.stepanova on human capital and the educational system in the economy who conducted scientific research on development. currently, there are several definitions of human capital as an economic category and management category in the economic literature. the term "human capital" was proposed by a. shults: "valuable human abilities and human capital can be developed with the help of appropriate investments" [1]. g. bekker considers a person to be a combination of a simple labor unit and a certain amount of human capital. e. dj. according to dolan, human capital is "capital in the form of mental abilities acquired through educational or practical experience". s. fischer, r. dornbusch and r. shmalenzi defines human capital as a measure of earning capacity embodied in a person [1]. v. according to bowen, "human capital consists of knowledge, skills, motivation and energy that are given to people and can be used for the production of goods and services for a certain period of time" human capital is defined as knowledge, skills, experience and other characteristics embodied in individuals and related to economic activity[3] a.i. dobrynin, s. a. dyatlov and e. d. in the works of the tsyrenovas, human capital is "... health, knowledge, skills, abilities and motivations formed as a result of investments and used by a person appropriately in a certain field of activity, which helps to increase labor productivity and production efficiency, and thus affects the quality of life of a person. given about a certain set of reserves and the growth of a person's income" [4]. the development and spread of the theory of human capital naturally required economists to understand the interrelationship of this concept with the categories of "labour force", "labour resources", "labor potential" and "human potential" used to determine the possibilities of human participation in economic processes. b.khasanov, r.nurimbetov, z.gapnazarova, a.abdullaev, m.yuldashev, among the economists of our country, define human capital as "the sum of investments in education, training, production skills, as well as mobility, which can be compared to the accumulation of physical capital by an entrepreneur" [5]. in a broad sense, they identify the labor force with the economically active population, and in a narrow sense with the employees of the enterprise. labor potential is the realized and unrealized potential of human resources determined by their ideas and the material and technical base of production. b. m. genkin understands labor power as a person's ability to work, that is, the sum of physical and intellectual information that can be used in production. he sees human capital as a set of qualities that determine productivity and can be a source of income for an individual, family, enterprise and society [6]. a. b. doctorovich and n. a. volginlar in his scientific works defines labor potential as a part of human potential formed on the basis of natural data, education, upbringing and life experience, and a set of various qualities, labor capacity of an employee, a general indicator of a personal factor of production, and human capital as "a certain part of the development of society and economy defines as a labor process for the production of goods and services, a part of the labor potential that can be realized with the necessary resources at the historical stage, under certain conditions. [7]. human potential "is a systematic combination of income, health, abilities, knowledge, professional qualifications, skills, culture and ethics that provide vital activities and work processes with the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 47 www.americanjournal.org necessary resources under certain conditions" [8]. human capital is defined as a part of human ability as a component of labor potential implemented in production. t.l. according to sudova, the peculiarity of the modern interpretation of human capital takes into account its social component, because in order to realize innate abilities, a person acquires and implements knowledge transfer, personal relationships, professional experience, professional development, and social knowledge and skills throughout his life. t.e. stepanova believes that human capital is the acquisition of knowledge, practical experience, professional and cultural skills and intercultural communication. its value is determined by the subject's ability to realize himself in any activity. the value of personalized human capital to an enterprise depends on the ability of these intangible assets to increase revenue [9]. these ideas are confirmed by modern "management" approaches in the theory of human capital (the theory of human capital management of the enterprise), which emphasizes its role not only in increasing labor productivity, but also in increasing the intangible assets (intellectual capital) of the enterprise and, as a result, ensures its competitiveness in the knowledge economy. f.m. according to kasimov, human assets are the collective knowledge of the company's employees, their creative abilities, ability to solve problems using management and entrepreneurial qualities [10]. i. bontis defines human capital as "combined intelligence, skills, and special knowledge that provide the ability to solve problems" [11]. t. stewart, m. yundg and m. armstrong study human capital as an integral part of the intellectual capital of the enterprise [12]. the considered approaches and interpretations of the concept of "human capital" also differ in the detailed level of the structure of this type of capital. almost all researchers take into account knowledge, skills, ability to increase and renew them as its main component, that is, a number of specialists supporters of human resource management of the enterprise emphasize that it should be limited as an educational factor. in this approach, human resource development basically means increasing the potential of the workforce through various skills development. supporters of the theory of human capital prefer a broader interpretation of human assets in the modern sense. for example, t.e. according to stepanova, they include: general and special knowledge; skills, experience, qualifications; the ability to increase and update knowledge; health, gene pool; motivations, values; migration capital; is to have economically important information. e.m. korotkov notes the main features (components) of human capital, such as knowledge, skills and abilities, creative potential and a set of abilities, value system, developed personality, dignity, mobility, motivation and health [13] . classification of its types remains a controversial issue in the theory of human capital thus, g. becker proposed a distinction between "general" and "special" human capital, and includes knowledge and skills obtained as a result of special training and is of interest only to the enterprise from which they were obtained. j.kendrick divides human capital into material (costs necessary for the physical formation of a person) and intangible (accumulated costs for general education and special training). m. m. kretsky identified such forms as production, consumption and intellectual human capital, i.v. ilinsky distinguished such forms as education, health care and culture [14]. t.l. sudova distinguishes two elements of human capital: inherited (ability received at birth) and acquired (which requires effort and investment) [238; p. 58]. the considered interpretations of the content and composition of the concept of "human capital" allow to form the following definition of it. human capital (human assets) of an enterprise is a set of american journal of business management, economics and banking volume 20 january, 2024 p a g e | 48 www.americanjournal.org physical, intellectual and social qualities of human resources that are part of the human (including labor) potential and intellectual capital of the enterprise, which are implemented in innovative activities and bring income to the owners of these qualities, the enterprise in which they work and society as a whole , is done by creating new values. this definition, firstly, describes the role of human capital in the activity of the enterprise, secondly, reflects its interrelationship with relevant economic categories (human assets, human resources, labor, human resources, intellectual capital), and thirdly, reveals its elementary composition. references 1. khasanov, a. a. (2017). methods and methods of forming economic education through interdisciplinary communication through information technology. journal, (3), 38. 2. hasanov, a. a., & gatiyatulina, r. m. (2017). interdisciplinary communication as a didactic condition of increasing the efficiency of educational process. eastern european scientific journal 3. sharipov, d., abdukadirov, a., khasanov, a., & khafizov, o. (2020, november). mathematical model for optimal siting of the industrial plants. in 2020 international conference on information science and communications technologies (icisct) (pp. 1-3). ieee 4. abdurashidovich, x. a., & nigmanovna, m. f. (2019). access to electronic educational resources in the education system. european journal of research and reflection in educational sciences vol, 7(12). 5. ravshanovna, p. n., &abdurashidovich, k. a. (2019). role of innovation in school development. european journal of research and reflection in educational sciences vol, 7(12). 6. hasanov, a. a. (2020). peculiarities of preparing teachers for the development and use of elearning resources. theoretical & applied science, (9), 15-17. 7. khasanov, a. a. (2018). didactic foundations of interdisciplinary connections at subject teaching. eastern european scientific journal, (6). 8. гаибназарова з.т. современное состояние и тенденции повышения качества человеческого капитала в компаниях зарубежных стран и в узбекистане. научноаналитический журнал наука и практика российского экономического университета им. гв плеханова 2020 г. 12/1 c. 130-142. 9. z.t. gaibnazarova (2017) improving the system of higher education is the main factor in the formation of human capital. scientific and analytical journal science and practice of the plekhanov russian university of economics vol, 3(27). p. 72-78. 10. гаибназарова з.т. (2020) роль человеческого капитала для разработки и внедрения инноваций в экономику // цифровая экономика: новый этап развития нового узбекистана посредством новых технологий, платформ и бизнес-моделей: материалы международной научно-практической конференции (deuz), tadqiqot, узбекистан, ташкент.-часть 12 cited by 10. 11. гаибназарова з.т. (2020) инвестиции в человеческий капитал как драйвер увеличения его стоимости // минтақа иқтисодиётини инвестициялашнинг молиявий-ҳуқуқий ва инновацион жиҳатлари. с. 183-187 https://scholar.google.com/scholar?cluster=1401566597297112365&hl=en&oi=scholarr https://scholar.google.com/scholar?cluster=1401566597297112365&hl=en&oi=scholarr https://scholar.google.com/scholar?cluster=1686551676744104306&hl=en&oi=scholarr https://scholar.google.com/scholar?cluster=1686551676744104306&hl=en&oi=scholarr https://scholar.google.com/scholar?oi=bibs&hl=en&cites=1686551676744104306&as_sdt=5 https://elibrary.ru/item.asp?id=43155578&pf=1 https://elibrary.ru/item.asp?id=43155578&pf=1 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 49 www.americanjournal.org 12. гаибназарова з.т. (2020) влияние человеческого капитала на переход от информационного общества к цифровой экономике // архив научных исследований 2022/6/28 vol 4 (1). 13. z.t. gaibnazarova theoretical and methodological development of human capital and determining its effectiveness // экономика и инновационные технологии 2019/12/12№6. p. 43-49. 14. з.т. гаибназарова качество образовательных услуг как развития человеческого капитала // экономика и инновационные технологии 2016/12/12 №6, с. 149-156. http://journal.tsue.uz/index.php/archive/article/download/2808/398 http://journal.tsue.uz/index.php/archive/article/download/2808/398 https://inlibrary.uz/index.php/economics_and_innovative/article/view/11167 https://inlibrary.uz/index.php/economics_and_innovative/article/view/11167 https://inlibrary.uz/index.php/economics_and_innovative/article/view/9030 american journal of business management, economics and banking issn (e): 2832-8078 volume 4, | sep., 2022 p a g e | 57 www.americanjournal.org the importance of the development of the service sector in the republic of uzbekistan xudayberdiyeva dilafruz abidovna teacher, yodju technical institute of tashkent city, tashkent, uzbekistan a b s t r a c t k e y w o r d s the sphere of services is a generalized category, which includes various types of services, production, provided by enterprises, organizations, as well as individuals. this article shows that the role of the services market as one of the most important sectors of the economy today. the complexity of services and the saturation of the market with new goods require rapid growth of scientific and technological progress, and the article also shows the ways of development of the service sector. services, service sector, social sphere, digital economy, national economy, service sector market, modern world. introduction currently, the sphere of services is a complex, specific socio-economic system with various functions, resources, connections due to the nature of services, their purpose, types of activities and the specifics of service processes. with the development of society and the growth of productive forces, a certain development of the service sector occurs. currently, there is an increase in employment in this area, an increase in the technical equipment of labor and the introduction of advanced technologies. the development of the service sector plays an important role in the economy of modern times. the main factors of the growth of services in the economy are such factors as scientific knowledge, sets of intangible forms, integration of information technology and entrepreneurial activity. this sector of the economy contributes to an increase in production efficiency, including various types of activities. the final result of this activity is not the finished product, but the services provided. services can be provided not only to enterprises, but also to individuals final consumers. the scope of the services sector is very diverse. this includes the delivery of products from the manufacturer to the customer, including the organization of entertainment events. it also includes hairdressers, restaurants, repair shops, sports clubs, travel agencies, etc. modern entrepreneurship is gaining popularity, which is primarily due to the development of the service sector, the opportunities created for the functioning of small business entities in this area. a specific quantitative advantage of small business entities is a characteristic feature of this area. small businesses make a significant contribution to the development of the service sector in the country. therefore, state support and stimulation of business entities is necessary. the growth of american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 58 www.americanjournal.org enterprises operating in relation to small business entities affected the growth of the total number of enterprises and organizations operating in the field of services. the level of development of the services sector ensures the territorial and social mobility of the population, the development of new economic regions, increased production efficiency and consumption of material products. as you know, the level of development of the services sector is an indicator of ensuring a decent quality of life for the population. world experience shows that low quality and lack of services, lack of modern service negatively affect the survival of people. on the contrary, the high quality and variety of services have a positive effect on the health and mood of people, increase the labor productivity of workers, reduce consumer costs, help increase leisure time, and increase the efficiency of leisure. the measures taken to promote balanced domestic demand and comprehensively promote the development of domestic service producers ensured changes in the structure of consumer demand for services. the demand for transport and mobile services, organization of family events and recreation, internet services, household, health and educational services has increased. the increase in the volume of market services provided is positively influenced by the increase in the share of services such as financial and transport services, trade, communications and informatization in the structure of services provided. the development of the service sector is following the path of making economic decisions. in a short time in trade, the number of its small retail organizations tents, stalls, counters, pavilions with light construction and fair types-is increasing. with the help of small traders, the problem of replenishing the consumer market was quickly solved, the buyer had the opportunity to choose a product. an important role in the economic life of each country is played by the trade service, which carries out the relationship between production and consumption, has an impact on the volume and composition of production of products, as well as on the improvement of their types and quality. in addition, in recent years it has been observed that the market is equipped with modern information technologies, means of communication. the use of high-tech innovative developments in the field of information and communication technologies helps to increase the efficiency of management and technological processes in enterprises, create new markets for goods and services in various sectors of the economy and expand existing markets, which ultimately leads to an improvement in the life of the population. as practice shows, the most important condition for the formation of an economy of knowledge and services is a developed system of training and retraining of personnel. in the process of ongoing reforms, the country needs highly qualified specialists in various fields. highly qualified personnel will be the driving force behind an innovative economy. the development of the field of education and science, which is considered one of the priorities of the strategy of action for 2017-2021, is as follows: further improvement of the system of continuing education, increasing the capabilities of quality educational services, continuing the policy of training highly qualified personnel in accordance with the modern needs of the labor market; improving the quality and effectiveness of the activities of higher educational institutions on the basis of the introduction of international standards for assessing the quality of education and training, gradually increasing admission quotas to higher educational institutions; stimulating research and innovation american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 59 www.americanjournal.org activities, creating effective mechanisms for the introduction of scientific and innovation achievements into practice, organizing specialized scientific and experimental laboratories, high-tech centers and as part of the implementation of measures to reform the health care system in the republic, the further reform of its initial link, the system of rapid and emergency medical care, aimed at improving the comfort and quality of medical and socio-medical services to the population, expanding the possibilities of the population to use high-quality medical services, providing them with special and the level of development of the service sector is an indicator of ensuring a decent quality of life of the population. as the post-industrial information society is formed in our country, the role of the service sector is growing, as the needs of the population are growing and their diversity is expanding. the decree of the president of uzbekistan no. pp-104 dated january 27, 2022 "on additional measures for the development of the service sector" was adopted. the document was developed with the aim of developing the service sector on the basis of special approaches based on the specifics of the regions, providing business entities with financial resources and infrastructure, as well as introducing a favorable tax regime for them. it should be noted that one of the most important factors affecting the development of the service sector is the digitalization of the economy. the digital transformation of the financial and economic system of the state, in modern realities, is an irreversible process that allows ensuring the proper level of competitiveness of the enterprise in the conditions of modern processes of development of the national economy, the study of trends and patterns in this area and determines the relevance of the subject of this scientific research. the last three decades, the service sector largely determines the new macroeconomic indicators of most countries of the world, significantly surpasses the industrial sector of the economy and agriculture in terms of gross domestic product, leads in the number of new jobs and the number of employed, is a key sector in ensuring sustainable development and combating poverty worldwide. the strategy "digital uzbekistan-2030" has been approved in the republic, according to which programs of digital transformation of regions and industries for 2020-2022 are being implemented. according to the results of the first half of 2021, the volume of services rendered in the digital economy amounted to seven trillion 200 billion soums, the export of computer programming services amounted to 17 million 500 thousand dollars. and the introduction of a payment system for 360 types of state duties through a single billing system saved 24 billion soums. meanwhile, in 65 organizations, 116 districts and cities, the digitalization process is stalling. currently , two patterns can be identified: enterprises of service industries that pursue an active policy of digitalization of business are characterized by a higher rate of reduction in the number of business entities, a higher level of turnover and a decrease in the number of personnel; enterprises of service industries that pursue a moderate policy of digitalization of business are characterized by a lower rate of reduction in the number of business entities, a lower level of turnover and an increase in the number of personnel. summing up the above, we can say that the current situation in the field of digitalization of business processes of enterprises in the service sector of the republic of uzbekistan is characterized by relative heterogeneity. along with industries that pursue an active policy of digitalization of business (finance, insurance, trade), there are industries that pursue a moderate policy of digitalization (construction, hotel industry, transportation and storage industry). there is a clear trend towards a higher level of american journal of business management, economics and banking volume 4, sep., 2022 p a g e | 60 www.americanjournal.org efficiency of enterprises in industries that have a higher level of digital activity. at the same time, a certain problem is being formed in this aspect a decrease in the number of employees, which may cause a deterioration in the general economic situation in future periods. references 1. resolution of the president of uzbekistan dated january 27, 2022 no. pp-104 "on additional measures for the development of the service sector". 2. modernization and integration: social-philosophical analysis. rol'nauki v formirovanii sovremennoj virtual'noj real'nosti. – 2019. 3. n.x.xalilov, n.t.safina. "the need to include gemification elements in the educational process". journalnx a multidisciplinary peer reviewed journal. (issn no.(e):2581-4230) maharashtra india. 2021. 4. abidovna k. d., asatillaevich a. b. stages of technical training of athletes //euro-asia conferences. – 2021. – т. 1. – №. 1. – с. 94-96. 5. farxodjonova n. f. formation of national idea through factors of national culture //мировая наука 2020. проблемы и перспективы. – 2020. – с. 3-6. 6. xudayberdieva d. a., shodmonov x. n. methods of teaching economic disciplines in modern conditions of the modification //theoretical & applied science. – 2020. – №. 1. – с. 792-795. 7. jamalovna j. d. et al. the importance of marketing strategies in the provision of physical education and sports services //south asian journal of marketing & management research. – 2020. – т. 10. – №. 4. – с. 111-119. 8. akbarov b. a. forming pupils’ professional thinking model //eastern european scientific journal. – 2019. – №. 1. 9. farxodjonova n. f. relation to national culture in the condition spiritual renew of society in the republic of uzbekistan //мировая наука. – 2018. – №. 6. – с. 14-17. 10. xudoyberdiyeva d. a., ibragimov g. a. prospects of service in uzbekistan //экономика и социум. – 2019. – №. 12. – с. 147-150. 11. akbarov b. formation of professional motivation of students in the educational process //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 4. – с. 702-704. 12. xudoyberdiyeva d. a. management of the services sector and its classification //theoretical & applied science. – 2019. – №. 10. – с. 656-658. 13. akbarov b. a. pedagogical system of formation of professional thinking in secondary school students.: author. dis.... dcs. – 2020. 14. xudoyberdiyeva d. a. management of service rendering organizations and its own characteristics //приоритетные направления научных исследований. – 2019. – с. 24-25. 15. abidovna k. d., asatillaevich a. b. sport management: sport management //journalnx. – с. 342-345. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 13 www.americanjournal.org education spending strategy to achieve sustainable human development: future visions m. m. yousra rabie ibrahim imam jaafar al-sadiq university yusraa_rabia@sadiq.edu.iq m. m. nour abdelnabi abboud imam jaafar al-sadiq university noor-abdalnabi@sadiq.edu.com m. m. raed ali mishkl imam jaafar al-sadiq university read_meshakal@sadiq.edu.iq m. m. israa abdel hussein issa imam jaafar al-sadiq university israa.abid86@gmail.com a b s t r a c t k e y w o r d s among the government institutions concerned with achieving sustainable human development is the education institution. through universities, colleges, institutes and its other branches, it contributes in a qualitative and unique way to preparing human cadres capable of producing and disseminating scientific and technological knowledge through developmental research and educational programs. it is the only institution concerned with providing other government institutions and sectors with the human expertise necessary to achieve sustainable development, so the financial, material and logistical resources allocated to education through government spending is an urgent necessity. it is noted that the interest of developed countries in providing adequate financial resources to the educational institution has increased its performance and the achievement of goals. however, in iraq and most developing countries, a decrease in financial allocation to education has been observed despite the amount of financial resources it possesses. this has led to a failure to improve the reality of education and a decline in sustainable human resources. by reviewing the financial allocations directed to government spending, education, sustainable human development. american journal of business management, economics and banking volume 22 march 2024 p a g e | 14 www.americanjournal.org education in the tripartite budget (2023-2025), a significant decrease was recorded in the financial allocations to the education sector compared to the previous three years (2020-2022), which hurt the production of human resources that support the iraqi economy to achieve sustainable development, so iraq ranked (121) in the global classification of levels of sustainable human development. the research aims to analyze the effectiveness of government support through spending on education in iraq from (2010-2025) and its impact on achieving sustainable human development, by adopting the descriptive analytical approach. introduction in order to achieve the goals that the countries of the world seek to achieve in many political, economic, social, and technological fields, they are working hard to improve the reality of education, which is the basic foundation in managing the available resources and exploiting them optimally through its human outputs. educational institutions, through education programs, research, and individual and collective innovations, contribute to ensuring the achievement of sustainable development in the production of skills, contributing to the establishment of an advanced industrial base that reduces the consumption of energy that pollutes the environment. skilled, educated, and conscious human cadres are the basis of sustainable economic growth and development . therefore, university education is the most important and most prominent factor in the process of creating a working class prepared for the process of sustainable economic growth, but these institutions, with all their components and departments, in order to function properly in all parts of the world, must receive government support, so a significant portion of the state budget is allocated in order to support the economy. and its sectors and achieve the set goals . research problem the major difficulties and obstacles that prevented achieving sustainable human development in iraq were represented by the government’s inefficient management of economic resources, and the low size of financial allocations to the education sector, which led to a decrease in human resources contributing to sustainable development . research objective the research aims to show the volume of government spending on the education sector in iraq for the period 2010 2025 and the effectiveness of this spending in building a sustainable human base. research hypothesis the increase in government spending contributes to increasing skilled human resources to contribute to achieving sustainable development. american journal of business management, economics and banking volume 22 march 2024 p a g e | 15 www.americanjournal.org spatial and temporal boundaries *spatial borders of iraq. *the time limits are from 2010-2015. research methodology the researchers relied on the inductive and analytical approach using descriptive and statistical methods to deny or prove the research hypothesis. research structure the research was divided into three axes: the first axis included the general conceptual framework for sustainable human development, the second axis included the role and importance of education in developing sustainable human resources in iraq, and the third axis included an analysis of the role of spending on education in achieving sustainable human development in iraq. the first axis conceptual framework for sustainable human development first: the concept of sustainable human development: the concept of sustainable human development is a combination of the human development strategy, as expressed in the human development report issued by the united nations development programme, and the concept of sustainable development, which was adopted by the united nations environment conference in 1992, and the summary of this emerging combination is in the comprehensive definition of sustainable human development, which it is stated in the united nations development program (it is a process that aims to increase the choices available to people. in principle, these choices are without limits and change over time) (united nations programme, 1990, 12). in terms of application, it has been shown that at all levels of development, the basic options are: for people to live long lives free of ills, to acquire knowledge, and to obtain the resources necessary to achieve a decent standard of living. unless these basic options are guaranteed, many other opportunities will remain out of reach. however, human development does not end there. there are additional options that many people are interested in, and they are derived from political, economic, and social experiences, opportunities for brilliance and creativity, people enjoying self-respect, and ensuring human rights (george corm, 2003, 23) the development program began to mature the concept of human development, as it proposed concepts complementary to its basic concept, including the concept of sustainable development, described before it as pro-people and pro-nature development. it gives priority to reducing poverty, productive employment, social interaction, and regenerating the environment, and it balances human numbers with what societies have. adapted capabilities, and the enormous medical capabilities (united nations development programme, 1994, 58.) the content of sustainable human development is based on the idea of ensuring job opportunities for future generations, that is, in the sense of fair distribution or sharing of development opportunities between present and future generations. it is development that does not generate economic growth, but is also concerned with distribution, and it has also added another dimension to the concepts of human development and sustainable development. it is social capital, which can be summed up as american journal of business management, economics and banking volume 22 march 2024 p a g e | 16 www.americanjournal.org the willingness of people to make a conscious commitment to give up some of their ambitions for the sake of current or future generations. (https://www.mewa.gov.sa) second: the basic factors for sustainable human development. despite the abundance of what has been defined as a concept for human development, they all revolve around providing the best ways and presenting the best legitimate opportunities to exploit available human energies and stimulate those energies to ensure the well-being of society as a whole and increase its levels. in order to ensure the achievement of aspects of human development and stimulate its role in society, several must be available. factors considered essential for human development are as follows :( https://mawdoo3.com •political stability and the spread of freedom and democracy . •knowing and identifying human capabilities, especially among young people, and the enormous energies they possess and how to exploit them. •working to raise the standard of living of community members. •adopting administrative methods based on planning, good management, and continuing education . •work in an organized manner by knowing the required specializations . •paying attention to health and improving health conditions. •developing education, its methods and inputs to obtain good outcomes. • eliminate the culture of shame in some businesses and professions. second: the importance of human capital development the importance of developing human capital lies in investing people in the education sector and other vital sectors, because the level of training and skills they have received has achieved higher productivity for them. therefore, investing in education and training achieves high gains and profits as a result of relying on sustainable human capital. (becker, g. s. 1964 ) ) the importance of human resources development can be summarized through the following points: (alevi, 2008, 7 ) 1 if human resources are developed, they can create new sources of national income and be an alternative to accessing non-renewable sources that are exhaustible in the future. 2 high-level human resources are the basis of organization and coordination between the various elements of material and human production. 3human competencies represent the basis of scientific and technical research in employment and production. 4it has a pioneering role in achieving sustainable development, achieving accumulation of physical capital, and developing related sectors, that is, achieving front-end external savings. 5 human resources are considered one of the most important sources of influence on the actual performance of all economic sectors, because the skills, knowledge, experience and education that these resources possess directly affect the economic units. fourth: the main elements that contribute to achieving sustainable development through human development. in order to reach an advanced level of sustainable human development here, the main elements that kray referred to must be provided. (filho, j, 2009, 9) https://www.mewa.gov.sa/ https://mawdoo3.com/ american journal of business management, economics and banking volume 22 march 2024 p a g e | 17 www.americanjournal.org 1 justice in the environment: justice is one of the most important elements for all definitions of sustainable development because the focus of sustainable development is achieving equality for generations. what the current generation consumes must not affect what is prepared for the consumption of the next generation by maintaining balance in all patterns of consumption and production. the johannesburg conference on sustainable development, which was held ten years after the rio de janeiro conference, confirmed that the available statistics indicate that the fate of humanity on earth may be painful, as developed countries contribute more than 65% of environmental pollution and consume the resources are estimated at (86%) and its energy consumption is estimated at (83%) non-renewable, and (45%) of fresh water. in contrast, 3.5 billion people consume polluted water and cause 5,000 deaths every day in africa. 2efficiency in the environment: environmental effectiveness is directed towards reducing waste, rationalizing energy consumption, and optimizing the use of natural resources, that is, reducing negative impacts on the atmospheric environment. the effectiveness of the environment is linked to reducing inputs to the production process and using environmentally friendly energy to achieve a certain level of outputs. using natural resources as inputs will result in outputs in the form of waste and emissions, and the direct relationship between inputs and outputs will be reflected in negative impacts on the environment (qurm, 2003, 6-5). environmental effectiveness is examined by creating greater value with less impact on the environment, and this is considered the essence of sustainable development. (rock, 2003, 5) 3efficiency in the environment: it is concerned with protecting natural resources from misexploitation and inefficient use, and according to the servian kozy rule for sustainable development, part of the result from the use of exhausted resources should be used to solve current matters and invest the rest of the return in future projects that serve the next generations. (ghanaim, 2001, 3) fifth: the sustainable relationship between human resources and education. the seventeen goals presented by the united nations for sustainable development are the fourth goal that links human development and education to achieve sustainable development. the fourth goal guarantees equitable and comprehensive education for all and enhances lifelong education opportunities. when translating this goal, it becomes clear to us that everyone enjoys ( males and females) with equitable and good primary, secondary and even university education, which leads to achieving appropriate and effective educational results. here, reference must be made to the seventeen goals announced by the united nations in its program, which are as follows: (united nations, 2015) 1eradicating poverty. 2eliminating hunger, providing food security and improved nutrition, and promoting agriculture. 3good health and well-being. 4 quality education: ensuring quality, equitable and comprehensive education for all and promoting lifelong education opportunities for all. 5 gender equality. 6 clean water and hygiene. 7clean energy at affordable prices. american journal of business management, economics and banking volume 22 march 2024 p a g e | 18 www.americanjournal.org 8decent work and economic growth. 9industry, innovation and infrastructure. 10 reducing inequalities. 11sustainable cities and local communities. 12responsible consumption and production. 13climate action. 14life under water. 15life on land. 16 peace, justice and strong institutions. 17 partnership agreement to achieve goals. education represents a system of intellectual, social and cultural capital, where economic, human and sustainable development policies are linked to education and its quality through attention to the individual. the united nations focuses on education in sustainable development, not just teaching content limited to reading and writing, but rather generalization that helps everyone from childhood to discover their latent talents and their level of awareness, enabling them to enter society as productive and creative citizens. (musa, 2015, 60) sixth: strategy to contribute to raising the level of education good education is sound, sustainable development that will make all generations effective and active. development cannot achieve its goals unless trained and qualified human resources are available. therefore, education is considered the basis for the process of sustainable development in society, and many academic studies indicate that managing sustainable development can only be achieved through educational and pedagogical institutions led by universities by activating the main functions of teaching, scientific research and community service through the graduates of the groups capable of meeting the needs of society. (al-shammari, 2014, 47) in this area, some strategies can be presented that would contribute to raising the level of education, as follows: (ashour, 2014, 22) 1 spending on education in proportion to the size of its outputs . 2focus on future planning and educational visions. 3 universal education and equal opportunities. 4stimulating economic, social and political mobility. 5lifelong continuing education. 6embracing competencies and scientific research . 7 refine talents and skills using information technology in the world of knowledge . 8 capacity building and possession of innovation tools. from the above, it can be pointed out that education, its quality, and the amount of spending directed are a fundamental goal in the development of countries and in ensuring their sustainable development. education is largely considered the cornerstone of the development process, and the success of development in any society depends heavily on the success of the educational system. in this society, education is directly linked to development, since the human being is the focus of development. (albahadli, 2019, 295) american journal of business management, economics and banking volume 22 march 2024 p a g e | 19 www.americanjournal.org the second axis the role and importance of education in developing human resources and its impact on the iraqi economy iraqi society in all its aspects, especially the educated classes, has suffered from low levels of government support, resulting from long accumulations and painful events that the country has experienced. the events that followed the year 2003, which severely affected all aspects of human capital, resulted in a decline in the efficiency of education outcomes, which was reflected in the rest of the economic, social, and even political sectors. therefore, it was necessary to intensify government support through spending on this vital sector because of its essential role. in supporting economic activity in all its fields, which is as follows: (abbas, abdullah, 2013) first: the government’s tendency to spend on human capital development 1directions of the ministry of planning: after iraq assumed its sovereignty in 2004 and iraq became a constitutional government, the first comprehensive strategic plan was developed to advance the reality of the iraqi economy and its vital facilities through the development of the national development strategy, which was issued in november 2004. it also emphasised the encouragement and support of human capital and the importance of supporting and paying attention to it by granting financial incentives, reducing bureaucracy, and increasing stability. (national development strategy, 2007, 7) there is also interest in the vocational education system so that it can respond to the development of skills and encourage employment, but the main goal was focused on building trained and skilled human capital in a way that is compatible with modern technology and levels of management, and then came the national development plan in 2010, which was more precise and ambitious in terms of by investing in the preparation of graduates and generating job opportunities to accommodate all educational outcomes, especially the skilled ones and training others, where an amount of (186) billion dollars was planned and the generation of about (4.5) million job opportunities. the plan also emphasized the skill aspect of the workforce and raising the technical level of technology used in labor productivity. (national development plan. 2010-2014) paying attention to the issue of spending and creating job opportunities for a large number of graduates requires a stable and sustainable political situation, not in light of the exceptional circumstances in which we live. despite the importance of the plans initiated by the government through its relevant ministry, they have not been implemented properly in iraq. (ministry of planning of iraq, 2018, 22) 2 education sector trends: the ambition to advance human capital development in iraq in terms of efficiency and production is crystallized in three goals, which are as follows: (arab human development report, 2005, 40) •full dissemination of education and expanding its scope beyond basic education represented by primary studies. •creating an institutional system for education that includes all graduates of the basic stages and introducing the technological nature in all educational institutions . •finding means within all levels of education that ensure the quality of education, leading to the crystallization of the path of modernity, distinction and creativity. american journal of business management, economics and banking volume 22 march 2024 p a g e | 20 www.americanjournal.org second: evaluating human resources development and its impact on economic activity human capital is considered the blood of the heart beating and flowing for the sustainability of any economic unit, whether on the micro or macro level, and ensuring its survival and continuation of business. it contributes to the production process by half, and is capable of renewal, and there are no theoretical limits to its stock. (al-jawarin, iraqiconomists.net). human capital in iraq will be evaluated based on evaluation indicators from the world bank for human capital, where a method of comparison with other countries is adopted, as it has achieved some high levels in improving capabilities and skills in the volume and type of production, and some of them were close to iraq in results. and some other things are less than that. to evaluate the efficiency of human capital and its reflection on the level of economic activity, a method of comparison will be followed with the economies of some developed and developing countries, and in order to clarify this, use will be made of table (1), which includes data on human development indicators for a group of countries, including iraq . table (1) human resource efficiency index for selected countries year country 2017 2018 2020 japan 0.38 0.84 0.79 singapore 0.81 0.84 0.80 gabon 0.42 0.43 0.43 haiti 0.42 0.42 0.42 pakistan 0.37 0.38 0.39 sudan 0.36 0.36 0.36 yemen 0.35 0.35 0.35 iraq 0.39 0.39 0.40 source : 2020 world development indicators for evaluation purposes, it is necessary to propose indicative values, represented by estimates measuring the human capital potential of each country, which are as follows: table (2) indicative values for evaluating human resources efficiency estimates weak weak weak middle good very good featured value indicative 0 ـــ 0.39 0.4 ـــ 0.49 0.5 ـــ 0.59 0.6 ـــ 0.69 0.7 ـــ 0.79 0.8 ـــ 0.89 0.9 ـــ 1 source: prepared by the researcher based on table (1) we note from table (1) and table (2) for selected economies that we obtain the following results. american journal of business management, economics and banking volume 22 march 2024 p a g e | 21 www.americanjournal.org table (3) evaluating human capital development in selected economies, including iraq country japan singapore gabon haiti pakistan sudan yeme n iraq evaluation very good very good weak weak weak weak weak weak we note from table (3) that economically and developmentally developed countries are characterized by a high (very good) valuation of capital. perhaps what can be concluded from the results of the above assessment is that there is a simultaneous and strong correlation between the extent of development of economies such as (japan and singapore) and the extent of interest in human capital, as it is noted that they are characterized by a high evaluation of their human capital. in confirmation of this fact, we note that among the selected countries that are considered not economically and developmentally developed, their human capital evaluation ranges from weak to poor. the focus of our research is iraq, and according to the world bank index, it takes an assessment of weakness in human capital development. in order to monitor weaknesses, it is intended to make a comparison at the level of the index components between what iraq has achieved in the components of human capital development and what has been achieved by countries that achieved a high rating, as stated in table (1), that is, the japanese and singaporean economies. the comparison can be made according to the following table: table (4) human capital development index by components for iraq, japan, singapore country prospect survive until the age of five 1 years studying expected2 outputs unified education3 years the study modified according to the amount learning 4 rate children under age fifth non-stunted 5 an average survival adults on a leash life 6 indicator head the money human 7 evaluation iraq 0.97 6.9 363 4.0 0.78 0.84 0.40 weak japan 1.0 13.6 563 12.3 0.94 0.93 0.40 very good singapore 1.0 13.9 581 12.9 0.95 0.92 0.88 very good source: world bank group, human capital project, 2018, pp. 44-48 the components of human capital can be classified, as stated in table (4), on two main axes. the first includes the health aspect, which is represented by columns (6, 5, 1), and the second includes the educational aspect, which is represented by columns (4, 3, 2). with regard to the first axis (health), when comparing iraq with both japan and singapore, it is noted that there is a health superiority for both countries over iraq, but it is not a decisive superiority, as it is noted that there are differences in proportions, but they are not those differences that are very different, and from that we conclude that iraq suffers from a limited defect. in the health aspect, it has an unfavorable impact on human capital in iraq, but within the framework of the second axis (educational), and according to the components of the index represented by years of schooling, standardized educational outcomes, as well as years of schooling adjusted according to the amount of learning, the imbalance appears clear and evident, as the differences the ratios between japan and singapore on the one hand and the ratios of iraq on the other hand are very different, as they are almost double or more in some of them. this indicates a clear and evident defect in the educational aspect at the current level and the level of the near future because the nature of the indicator is forward-looking for the future . american journal of business management, economics and banking volume 22 march 2024 p a g e | 22 www.americanjournal.org hence, we conclude from this that the development of iraqi human capital suffers from a deficiency in education, especially in the quality of education according to the components of the index, more than it suffers in the health aspect . the third axis analysis of the role of spending on education in achieving sustainable human development in iraq investing in education represents an indispensable necessity because education represents the basis of development in iraq, and requires continuous spending on it in order to transform the iraqi economy into a knowledge economy. university institutions constitute a cornerstone in the formation of a developed and prosperous economy. these institutions are the ones that lead... the technical and modern technological aspect of the economy towards sustainable future development. therefore, the process of investing in human capital includes increasing spending on the health and services sectors in addition to investing in the education sector, which has a positive impact on sustainable development and increasing the ability of individuals and society to increase productivity in all aspects of work. this does not mean that the government spends on building universities, colleges, and institutes, or accepting more students in those universities, should be accompanied by attention and focus on using modern tools in education, as well as the availability of educational personnel who are prepared and keep up with modern scientific developments. here, funds must be allocated for education in order to obtain future returns (markiw, 2011). , 539). in order to explain the role of government spending on education, we will analyze three basic indicators: first: allocating a percentage of general budget expenditures to develop educational outcomes. government spending on investment in education has an impact in preparing human capital, which reflects the government’s interest in improving the reality of the education sector. therefore, it is noted that financial allocations in the iraqi federal budget for the education sector increased after 2003, but it is noted that this increase in spending did not rise to the required level. it was not commensurate with the importance of this vital element due to the percentage increase in operational expenditures in the general budget at the expense of investment expenditures, in addition to the increase in expenditures on military matters in order to achieve security stability in iraq (al-kinani, 2013, 327). from table (2), it is clear that spending by the government on education increased slightly, as the percentage of government spending on education reached (5.7%) of public spending in 2004 and then decreased to (5.6%) in 2005 and (5.3%) in in 2006, due to the political changes that greatly affected spending on education, the continuation of american dominance, and the damage resulting from the continuation of this invasion, and with the increase in oil revenues resulting from the rise in crude oil prices in the international market, which constituted about 95-98% of the budget revenues, as they are as the primary financier of government spending, the percentage of financial allocations to the education sector increased in subsequent years to reach about (10.0%) in 2009, and then after that, expenditures allocated to the education sector decreased slightly with the decline in general state revenues due to the decline in oil prices and oil revenue revenues. the largest portion of spending was allocated to other sectors, especially military ones, due to the events that iraq was exposed to in 2014 and the terrorist attacks on parts of iraq’s regions, and then after that, expenses began to rise, as they constituted (14.0%) in 2015 of total public spending. after that, it was noted that there was a clear decrease in spending on education in 2016, as it reached (13.7%). this decrease american journal of business management, economics and banking volume 22 march 2024 p a g e | 23 www.americanjournal.org is due to two things. the first is the decline in oil prices and oil revenues, and the other is the continuation of the reconstruction policy in areas that were damaged by terrorist operations in 2014 and the continuation of directing a large portion of government public spending on military matters. as for the growth rate of financial allocations to the education sector, it witnessed fluctuations during the period 2004-2021, as its highest rate was recorded in 2008, when it reached (52%), while it recorded its lowest level. in 2015, it reached (-39.3%), while the highest amount of allocations to education from the budget was in 2016, when it amounted to about (103.0) trillion dinars, while this spending reached its lowest level in 2005, when it reached (14.7) trillion. dinar. as for the percentage of allocation of spending on education, it reached its highest percentage in 2014, reaching (14.0%), and the percentage of allocations reached its lowest level in 2019, when it reached (4.5%). table (5) and chart (1) show the relationship between public spending and spending on education, which is considered the important and basic tributary in the development process in iraq during the period 2004-2021. table (5) changes in expenditures allocated to education outcomes out of total iraqi government expenditures for the period (2004-2021) the year public expenditure one trillion dinars spending on education one trillion dinars percentage of spending on learning from public spending % 1) ) public spending growth rate % 2) ) 2004 321.1 18.3 5.7 2005 263.8 14.7 5.6 -17.8 2006 388.0 20.5 5.3 47.1 2007 390.3 27.9 7.1 0.6 2008 594.0 49.4 8.3 52.2 2009 525.6 52.7 10.0 -11.5 2010 701.3 66.2 9.4 33.4 2011 787.6 78.4 10.0 12.3 2012 1051.4 92.0 8.7 33.5 2013 1191.3 101.1 8.5 13.3 2014 1159.4 102.1 8.8 -2.7 2015 704.0 99.0 14.0 -39.3 2016 750.6 103.0 13.7 6.6 2017 754.9 39.1 5.2 0.6 2018 808.7 41.2 5.1 7.1 2019 1117.2 50.5 4.5 38.1 2020 760.8 40.1 5.2 -31.9 2021 822.6 41.8 5.8 8.1 the source was prepared by the researcher based on: central bank of iraq, general directorate of statistics and research, annual statistical bulletin, various years . ministry of finance, general budget department, various years . column (1, 2) prepared by the researchers. american journal of business management, economics and banking volume 22 march 2024 p a g e | 24 www.americanjournal.org . source: prepared by the researcher based on table (5) second: allocating a percentage of the gross domestic product to spend on educational outcomes: this indicator shows the financial allocations allocated to the education sector as a percentage of the gross domestic product. it expresses the extent of the government’s interventionist role in economic life in general and educational life in particular, and what is its philosophy and political role. the higher the percentage, the more evidence of its broader intervention and greater awareness. among them is the importance of the education sector and vice versa, and through table (3) it is noted that the percentage of spending on education as a percentage of the gross domestic product fluctuated during the period 2004-2021, with increases and decreases, as this fluctuation in the percentage of spending is due to the events that iraq was exposed to, which were represented by the global financial crisis in the year 2007-2008 and the internal economic and security conditions. however, the increase in allocations to education is low compared to the increase in the gross domestic product. however, this percentage subsequently witnessed an increase in 2010, reaching (4%). the reason for this is due to the increase in financial allocations to the education sector. in the general budget compared to the increase in the gross domestic product for the same year, which resulted from the government’s expansion of its current and investment spending as a result of the increase in oil revenues as a result of the recovery of oil prices after their decline due to the global financial crisis. then after that, there was a decrease in the percentage allocated to education in subsequent years, and the reason for this was due to the security events that the country witnessed, which led to a greater allocation of government expenditures to military matters, which had a negative impact on the percentage of allocations to education, as this led to a decrease in educational outcomes. to support sustainable development from human resources, table (6) shows the percentage of spending on education out of the gross domestic product. -60 -40 -20 0 20 40 60 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 العالقة بين االنفاق على التعليم واالنفاق العام ( 1)مخطط نسبة نمو االنفاق نسبة االنفاق على التعليم الى االنفاق العام american journal of business management, economics and banking volume 22 march 2024 p a g e | 25 www.americanjournal.org table (6) change in gross domestic product and spending on educational outcomes االنفاق الحكومي على الناتج المحلي االجمالي السنة التعليم نسبة االنفاق على % gdpالتعليم الى (1 ) % gdpمعدل نمو (2 ) 2004 53.3 18.3 3.3 2005 73.6 14.7 2 38.1 2006 95.6 20.5 2.1 29.9 2007 111.5 27.9 2.4 16.6 2008 157.1 49.4 3.1 40.9 2009 130.7 52.7 4 -16.8 2010 162.1 66.2 4 24.0 2011 217.4 78.4 3.6 34.1 2012 254.3 92.0 3.6 17.0 2013 273.6 101.1 3.6 7.6 2014 266.4 102.1 3.8 -2.6 2015 194.7 99.0 4.5 -26.9 2016 197.0 103.0 5.3 1.2 2017 221.7 39.1 1.7 12.5 2018 269.0 41.2 1.5 21.3 2019 276.2 50.5 1.8 2.7 2020 219.8 40.1 1.8 -20.4 2021 301.5 41.8 1.3 37.2 the source was prepared by the researcher based on: ministry of planning, central bureau of statistics and information technology, directorate of national accounts, unpublished data for different years. column (1, 2) prepared by the researchers. the source was prepared by the researcher based on the data in table (6). -40 -20 0 20 40 60 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 chart (2) the relationship between gdp and spending on education gdpمعدل نمو gdpنسبة االنفاق على التعليم الى american journal of business management, economics and banking volume 22 march 2024 p a g e | 26 www.americanjournal.org from the previous analysis, it is noted that the level of spending on education within the state budget is low compared to other countries. the world bank warned in a report issued in 2021 on the economic and development conditions in iraq of a crisis facing iraq related to human capital fueled by the education crisis, and with regard to spending on education, the report indicated iraq spends 10% less of its budget on education (primary and higher) compared to the average in the middle east and north africa region, and the salaries of teachers and employees represent a 93% percentage of spending, while only 1% is allocated to investment in education. the report also indicated that the ministry of higher education spent less than 4% of the investment budget for higher education in the years 2018-2019. this is an indicator of the negative impact of spending on education on achieving sustainable development. determining the impact of spending on development is done by examining the illiteracy rate and the rates of those enrolled in school at its various levels. therefore, hungary cannot be governed without addressing these variables, which requires addressing them. conclusions 1although iraq possesses the elements of sustainable development in its various aspects and dimensions, it has not benefited from these elements in achieving sustainable development. this is due to a number of reasons, including internal and external. the internal reason lies in the lack of belief of those in charge of the country’s administration in the importance and role of education in laying the foundation stone. to build other institutions and thus lead society towards sustainable development. as for the external reason, it lies in the burden on iraq of debts abroad that it bears as a result of mismanagement of the country by the previous regime, which led to iraq not keeping up with the stages of sustainable development that the year has achieved and made strides in. 2the backwardness of the education sector in iraq contributed greatly to this being reflected in its outcomes for all other sectors, as the education sector is the basis for supplying all sectors with capabilities, skills and human resources capable of innovation, development, achievement and scientific construction, and this backwardness in the education sector was negatively reflected in the outcomes other sectors, which led to iraq's failure to achieve sustainable development and its joining the emerging and developed countries. 3the weak interest of successive governments in the rule of iraq after 2003 to this day in the education sector had a negative impact on achieving sustainable development, and this was evident in the weak size of the government’s financial allocations to the education sector in its general budget, as the percentage of financial allocations to the education sector from the gross domestic product at its lowest level in 2021, it reached 1.3%. 4-iraq was unable to obtain advanced technological machines after 2003, which contributed significantly to the decline in the level of education in universities and institutes, which was reflected in the outcomes of education. 5despite the interest in the issue of sustainable development by professional bodies and organizations, they did not achieve the aspirations of iraqi society to advance towards sustainable development, for several reasons, including the weak focus on the educational sector and the scientific and intellectual capabilities it possesses that require its support and support, given the sector that provides society with innovations and inventions. which is the basis of all paper development. american journal of business management, economics and banking volume 22 march 2024 p a g e | 27 www.americanjournal.org recommendations 1those in charge of running the country must realize the importance and role of education in providing institutions and other sectors with educated human resources that work on innovation, renewal and invention. therefore, they must increase the volume of financial allocations to support education. 2initiating a law in the state budget that stipulates raising the value of the financial and logistical support required annually in order to carry out the reality of education in iraq, and working to separate the financial and material crises that iraq is going through from this allocation and it will be in an increasing manner. 3introducing advanced and modern machines in the education sector, which contributes to raising the level of scientific and technical capabilities in education outcomes, which reflects positively on other institutions and sectors, which in turn also contribute to raising the level of sustainable development of iraqi society. 5iraq should benefit from the experiences of some countries in making its way towards achieving long-term sustainable development, especially with regard to its investment strategies in the education sector. references 1national development strategy, 2007. 2-united nations programme, human development report for 1990. 3arab human development report, 2005. 4-central bank of iraq, directorate of statistics and research, annual economic report, 2016. 5the national development plan 2010-2014). 6-iraqi ministry of planning, central bureau of statistics and information technology, directorate of national accounts, unpublished. 7ministry of planning in iraq, central bureau of statistics, directorate of national accounts, 2018. 8haider talib musa, the reality of human development in iraq and its indicators with reference to the service and environmental reality, first edition, baghdad, dar al-kutub and documents, 2015. 9george, corm, sustainable human development and macroeconomics: the case of the arab world, new york: human development series no. (6) united nations programme, 2000. 10sanjak, rania, report on human development, research published on the internet. 11ashour, muhammad, the relationship between education and comprehensive development, alrai newspaper, 11/26/2014. 12abdul shahid jassim abbas and iftikhar abdul razzaq abdullah, education as a focus of human development, an analytical study, baghdad university journal of economic and administrative sciences, volume 3, issue 125, 2013. 13al-bahadli, salman saddam jassim, human development strategy is a basis for ensuring sustainable development, analytical study, al-rafidain university college, journal of baghdad university college of economic sciences, published research, 2019 14al-shammari, reda abdul-jabbar and al-jubouri, hassoun abboud, the role of education in human development in iraq, al-qadisiyah governorate, a case study, uruk, al-muthanna university, college of education for the humanities, issue 3, volume 8, 2015. american journal of business management, economics and banking volume 22 march 2024 p a g e | 28 www.americanjournal.org 15al-kinan, kamel kazem bashir, the swing of development in iraq between the legacy of the past and the aspirations of the future, a view in strategic analysis, 2013. 16elifi, muhammad, investing in human capital as a modern approach to managing human resources with knowledge, a working paper presented to the international forum on decision-making in economic institutions, university of m’sila, algeria, 2008. 17al-jawarin, adnan farhan, sustainable development in iraq, reality and challenges, iraqi economists network, on the website: iraqieconomists.net. 18muhammad ghanayem, the current status of water in palestine, published by the applied research institute, arij al-quds economic 2001. 19the website. https://www.mewa.gov.sa 20the website. https://mawdoo3.com 21becker, g. s. (1964). human capital theory. columbia, new york, 1964. 22-rock,s.,(2003),integrating sustainability in higher education ageneric ,international journal of sustainability in higher educastion. 23filho,j , (2009) universitis and rolemodels sustainable development ,eua. 24markiw n. gregory ( 2011) , principles of economics , the united states of america, usa , sixth edition. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 4 | p a g e the repercussions of the russian-ukrainian war on rentier economies -iraq is a case study fouad abd ul-mohsen aljeburi university of karbala, college of tourism sciences department of tourism studiesiraq foaad.a@uokerbala.edu.iq adil issa kadhim wazni university of karbala, college of tourism sciences department of tourism studiesiraq adil.issa@uokerbala.edu.iq muhay issa kadhim wazni muhi.issa@uokerbala.edu.iq a b s t r a c t k e y w o r d s this study aims to clarify the repercussions of the russian-ukrainian war on the rentier economies in general, and iraq in particular as its economy depends on more than 90% on oil revenues and to review the mechanisms of confronting it, to reduce its negative effects and enhance its positive effects. the study relied on the descriptive analytical approach to achieve its objectives, by referring to the secondary data issued by the official authorities in iraq. the study reached a number of conclusions, the most important of which are; the cumulative errors in the iraqi financial policies for the years after 2003, have widened the gap between economic balance & imbalance, and devote reliance on oil revenues in financing operational budgets without development. the study reached several conclusions, the most important of which are; the russoukrainian war has significantly changed the global economic order. it also contributed to the increase in the prices of exported crude oil by a greater percentage than the increase in the prices of some imported basic commodities. several recommendations were formulate, the most important of which are; the differences in prices and the quantities of exported crude oil should be used to develop the iraqi economy and rationalize domestic consumption. economic war, rentier economy, crude oil prices, basic commodities. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 5 www.americanjournal.org تداعيات الحرب الروسية األوكرانية على االقتصاديات الريعية العراق حالة دراسية المستخلص: والعراق ،األوكرانية على االقتصاديات الريعية عموما تداعيات الحرب الروسية بيان إلى هذه الدراسةدف ته , واستعراض آليات مواجهتها % على االيرادات النفطية 90كون اقتصاده يعتمد بنسبة تزيد عن -بشكل خاص للحد من آثارها السلبية وتعزيز آثارها االيجابية. هدافها, بالرجوع الى البيانات الثانوية الصادرة عن اعتمدت الدراسة علـى المـنهج الوصفي التحليلي لتحقيق أ ا مـن االسـتنتاجات أهمه عدد توصلت الدراسة إلى وقد . الجهات الرسمية في العراق في التراكمية أن االخطاء ; , قد وسعت الفجوة بين التوازن والال توازن االقتصادي, وتكريس 2003العراقية للسنوات مابعد الـسياسات الماليـة ال تمويل في النفطية االيرادات على التنموية.ماالعتماد دون التشغيلية الدراسة وازنات توصلت عدة وقد الى ;استنتاجات أهمها ان الحرب الروسية االوكرانية قد تغير النظام االقتصادي العالمي بشكل ملحوظ. كما ساهمت في ارتفاع أسعار النفط الخام المصدر بنسبة أكبر من ارتفاع أسعار بعض السلع األساسية المستوردة. كما تم ;صياغة عدة توصيات أهمها االستفادة من فروقات االسعار والكميات المصدرة من النفط الخام في تنمية ينبغي االقتصاد العراقي وترشيد االستهالك المحلي. السلع االساسية. , االقتصاد الريعي, أسعار النفط الخام, اقتصاد الحرب الكلمات المفتاحية: مقدمة: هناك العديد من الدول ومنها العراق لم ، يتعافى من أزمة جائحة كورونا بدأ االقتصاد العالمي بالرغم من ان تبدأ ولحد اآلن برسم سياساتها االقتصادية بما ينبغي أن تكون عليه لتجنب آثار األزمات الطارئة الجديدة. فقد american journal of business management, economics and banking volume 19 december, 2023 p a g e | 6 www.americanjournal.org بآثارها االقتصادية واالجتماعية على شعوب العالم, والتي قد تغير -الحرب الروسية األوكرانية -برزت أزمة جديدة الدوالر في تعامالتها التدريجي عن بالتخلي المتقدمة الدول بدأت عدد من إذ العالمي, النظام االقتصادي في التجارية, اال ان تلك التداعيات تختلف من دولة الى أخرى حسب المعطيات والمؤشرات االقتصادية. يعقبها من عقوبات متقابلة بين أطراف في اإلطار العام وفي ظل استمرار الحرب الروسية االوكرانية, أو ما ;القوى الكبرى, وانشقاقات والتحامات, يمكن تقسيم الدول الى قسمين في األجل القريب أو المتوسط األول هي المستفيد المتضررة وبدرجات متفاوتة من الدول الدول والثاني هي الحرب وآثارها االقتصادية. تلك نسبيا من ة تداعيات الحرب. وألهمية تقدم، ما على بناء التحوط من تداعيات تلك الحرب وأسبابها وما ستؤول اليه نتائجها محليا واقليميا ماالت تفان مشكلة الدراسة تتمثل بـهشاشة االقتصاد العراقي, وضعف التخطيط االستراتيجي لمواجهة االح, وعالميا الطارئة في حال اتساع نطاق الحرب الروسية االوكرانية, وتوقعات انخفاض أسعار وكميات النفط الخام العراقي المصدر, وشحة السلع الغذائية المستوردة. وبذلك يمكن طرح التساؤالت اآلتية: هل تسعى الحكومة العراقية الى استثمار األموال الناتجة عن زيادة أسعار وكميات النفط الخام المصدر في مشاريع .1 تداعيات ازمة الحرب الروسية االوكرانية وما يليها؟ تنموية)صناعية وزراعية( لمواجهة هل تسعى الحكومة العراقية الى تنويع مصادر االيرادات, ورسم سياسة اقتصادية واضحة. .2 الى: الدراسةهدف ت: الدراسةأهداف .تداعيات الحرب الروسية االوكرانية على االقتصاد العراقيبيان .أ . بيان سبل تقليل اآلثار المحتملة التي قد يتعرض لها االقتصاد العراقي نتيجة الحرب الروسية االوكرانية, وما بعدها .ب . دور السياسة المالية المتزنة في تجنب آثار األزمات االقتصاديةمن أهمية الدراسة: تنبع أهمية لدراسةأهمية ا : اآلتيةالفرضية الرئيسة تم االستناد الى الدراسة: لحل مشكلة الدراسة ات فرضي american journal of business management, economics and banking volume 19 december, 2023 p a g e | 7 www.americanjournal.org العامة )) النفقات ترشيد الى العراقية الحكومة و تسعى والزراعة , الصناعة تنمية في الفائضة األموال استثمار .((المحلية منهج الدراسة: لتحقيق أهداف الدراسة فقد تم استخدام المنهج االستقرائي في الجانب النظري للدراسة, واستخدام واالستنباطي في الجانب التطبيقي باعتماد البيانات الثانوية الصادرة عن الجهات الرسمية العراقي. المنهج التحليلي االطار المفاهيمي للدراسة الحرب الروسية األوكرانية .1 الجانب الروسي: 1-1 21اعترفت روسيا في بعد أن /2/ بكل من "جمهورية دونيتسك الشعبية"، و"جمهورية لوغانسك الشعبية"، 2022 24وكرانيا يوم األ اندلعت الحرب الروسية /2/ ى بنأوكرانية, استهدفت القوات الروسية أهدافا عسكرية إذ ، 2022 . ويرى حتية لتكنولوجيا المعلومات واالتصاالت األوكرانية، كما تم السيطرة على محطة تشرنوبل النووية األوكرانيةت /https://www.aljazeera.net/opinions المحللون بأن روسيا في حربها ضد أوكرانيا تهدف الى: ألمن القومي ا الذي قد يهدد دولة حاضنة للسالح النووي للحلف األطلسي إبعاد أوكرانيا عن أن تكون :أوال .الروسي لتمركز، اواقتصادي اإستراتيجي سينعكس على روسيا ,أوكرانيا شبه جزيرة القرم وجنوب شرق ل ضم روسيا :ثانيا المناطقتلك مصانع الحديد وإنتاج الحبوب في . .تغيير النظام السياسي ألوكرانيا وإيجاد قيادة سياسية وعسكرية جديدة موالية لروسيا: ثالث الجانب األوكراني: 21 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 8 www.americanjournal.org 24يوم في وكرانيا األ بعد اندالع الحرب الروسية /2/ أعلن الرئيس األوكراني األحكام العرفية في جميع 2022 .أنحاء أوكرانيا بأنه سيكون من "المستحيل" إخراج روسيا من جميع األراضي وبالرغم من اعتراف الرئيس األوكراني , اال انه المياه والغذاء والدواءفي قص نزوح العديد من المواطنين األوكرانيين من االراضي االوكرانية, ن األوكرانية، الحرب االستمرار في التحتية قرر البنية انها ستدمر تقليدية, ليست مع روسية الحرب بأن من علمه بالرغم ال التي المعركة ساحة في وحيدا وتركه له, الغرب خيانة من وثوقه منها االوكرانية, الخروج يستطيع https://www.albawabhnews.com . : اقتصاد الحرب .2 لكي الالزمةالتدابير قبل اتخاذه القرار بالشروع بالحرب, بأنه قد أخذ يغيب عن الجميع بأن الجانب الروسي ال لضمان التماسك ر الموارد االقتصاديةفايعمل على تو ا إنتاجي ا نظام ه، باعتماد مدة الحرب يصمد اقتصادها خالل روبل 150. كما ان الروبل الروسي قد ارتفعت قيمته من الداخليالمدني على المستوى / روبل 80دوالر الى دوالر, / مما يؤكد فشل العقوبات على روسيا, ونجاح الجانب الروسي اقتصاديا . يخصص جزءا كبيرا خالل مدة الحرب, إذرف اقتصاد الحرب بأنه تغيير هيكلي في بنية اقتصاد الدولة وقد ع . للمواطن الساسيةر االحتياجات اافليقتصر على تو خفض اإلنفاق العامي ومن موارد الدولة لمواجهة نفقات الحرب، https://rawabetcenter.com/archives/ خاصة فيما يتعلق هي التأثيرات االقتصادية، الروسية االوكرانيةالحرب أهم تأثيرات من إن أما إقليميا وعالميا , ف بشكل ذلكوسيؤثر , تجهيزها قل إمدادها وترتفع أسعارها ويتأخري إذ ، (النفط والغاز والقمحالطاقة والغذاء )سلع ب تان تعدان ل, فضال عن روسيا وأوكرانيا الالمستهلكة لها و أ لتلك السلعالمنتجة سواء ,مباشر على كثير من الدول , فمن الدول من تراجعت احتياطاتها النقدية وأصبحت مهددة اقتصاديا , نتيجة من أكبر المصدرين للطاقة والقمح ة للطاقة. ومن الدول من يستفاد من ارتفاع األكثر استهالكا للقمح, أو حاج ارتفاع االسعار, ولكونها من الدول https://www.albawabhnews.com/ american journal of business management, economics and banking volume 19 december, 2023 p a g e | 9 www.americanjournal.org أسعار الطاقة والقمح, كونها منتجة ومصدرة لها. وقد تستفيد الدول المنتجة للطاقة من ارتفاع أسعار السلع . https://www.youm7.com/story/2022األساسية األخرى التي تقوم باستيرادها. االقتصاد الريعي .3 مفهوم االقتصاد الريعي 13 وما شاكل ذلك ط أو الكبريت كـالنفبـاطن األرض ة فيطبيعـيال المصادربلـد علـى اقتصاد أي إعتمـاد ان ذلك يجعل منه فان، , دون الكسب عن طريق االنتاج والعملفي مبادالته التجارية بعد استخراج تلك المصادر , سريع التعرض للتصدعات (2019, رفيق)أو االنتاج الزراعي الصـــناعات التحويليـــة يستند على الا هشا , اقتصــاد االستثمار دون النشاط التشغيلي مالية بشــكل مباشــر فــي ال هعائداتتوجه و واالزمات الناشئة عن البيئة الخارجية, ة, الدول الريعيو ة.عوائد ريعي ,العوائد النفطية وتعد .(2013)ياسر, البلد تنعش اقتصاد التي نتاجية اإل قطاعات الفي مساه تشكل التي البلدان تلك الريعيهي العوائد عن فيها الخارجية ة مة تزيد المحلي 30نسبة الناتج من % (. 2002)عبد هللا, جماليالا تعريف االقتصاد الريعي 23 االقتصاد الريعي ف .االقتصاد الذي يشكل فيه الريع الخارجي نسبة كبيرة من الدخلعرف االقتصاد الريعي بأنه (2010)الشمري, متصل باقتصاد ريعي الريعية نظام فرعيهو اقتصاد تداولي، وليس إنتاجي وبذلك تكون الدولة . من األنماط االقتصادية المنتشرة في الدول التي تعتمد على بيع الثروات الطبيعية ومن ويعد االقتصاد الريعي, وعرف االقتصاد الريعي بأنه (. 2014)الياسري, بينها النفط لتنفق ما تحصل عليه من العائدات لغرض إدارة الدولة صورة نشطته على االيرادات الناجمة عن عمليات بيع الثروة الريعية، ال تعطي أدامة إاالقتصاد الذي يعتمد في (2012)شهاب, عن النشاط االقتصادي السائد في البلد واضحة . american journal of business management, economics and banking volume 19 december, 2023 p a g e | 10 www.americanjournal.org بيع على مباشر بشكل تعتمد التي الدول في السائدة االقتصادية األنماط من نمطا يعد الريعي االقتصاد . (2014)الياسري, الثروات الطبيعية كالنفط, لتنفق ما تحصل عليه من ايرادات في إدارة الدولة خصائص االقتصاد الريعي: 33 ان من أهم خصائص االقتصاد الريعي: . (2010)ابراهيم, البلد المصدر الرئيسي لإليرادات الخاصة باقتصاد أوال : يعد الريع (.2016شمس الدين, )لعملية اإلنتاجّيةبايعتمد اقتصاد الريع على موارد مالّية خارجّية غير مرتبطة ثانيا : تداعيات الحرب الروسية األوكرانية على االقتصاد العالمي: .4 أن من أهم تداعيات الحرب الروسية االوكرانية عالميا بشكل عام, هو ارباك االسواق العالمية وارتفاع أسعار السلع األساسية والبضائع الصناعية، وعلى الدول النامية بشكل خاص, إذ ان أغلب الدول النامية هي مستوردة با سوف انعكس بشكل مباشر على الدول النامية، و للبضائع الصناعية, كما ارتفاع أسعار السلع الصناعية في اور الحياة على سلبا سينعكس مما عالميا ، الخام النفط بيع أسعار ارتفعت إذ , العالمي النفط أسعار تأثرت كما ومنها مصدري الطاقة انعكست ايجابا على . اال انها قد (2022)خوري, االقتصادية واالجتماعية في أغلب الدول . (2022)المنشاوي, من النفط ياتهإمكانات كبيرة لزيادة الدخل من احتياط الذي يميلك، العراق الجانب التطبيقي البيانات: جمع .1 , شركة سومو, والمصادر ذات العالقة ,موقع وزارة الماليةمن عليهالقد تم اعتماد البيانات الثانوية التي تم الحصول الصناعة لبيان لوزارتي االستثمارية للموازنة المالية التخصيصات حجم المصدر, الخام النفط وأسعار كميات . والزراعة العراقية american journal of business management, economics and banking volume 19 december, 2023 p a g e | 11 www.americanjournal.org تحليل النسب: .2 :ارتفاع االسعار والكميات 3-1 أسعار وكميات النفط المصدر( 1جدول ) المصدر: شركة /سومو العراق. https://somooil.gov.iq/exports العراقي المصدر قد ارتفعت في األشهر ما بعد الحرب الروسية يتضح من الجدول أعاله بأن اسعار النفط الخام ا كانت عليه قبل اندالع الحرب , عم 2022حتى نهاية شهر مارس (% 30-51االوكرانية بنسب تتراوح بين ) .الروسية االوكرانية وهي زيادة كبيرة تؤكد زيادة االيرادات النفطية العراقية بسبب ارتفاع أسعار النفط الخام العالمي الطارئة نتيجة الحرب. نسبة االيرادات النفطية الى الناتج المحلي االجمالي)المبالغ مليار دوالر( 23 المحلي االجمالينسبة الدين العام الى الناتج ( 2جدول ) 2021 التفاصيل 75,65 االيرادات النفطية 87,20 الناتج المحلي االجمالي)*( %86,7 نسبة االيرادات النفطية الى الناتج المحلي االجمالي العراق. /المصدر: )*( مديرية الحسابات القوميةالجهاز المركزي لإلحصاء يتضح من الجدول بأن نسبة االيرادات النفطية الى الناتج المحلي االجمالي في سنة 2021 بلغت %86,7 والمتمثلة بنسبة مساهمة تفوق بكثير النسبة المتعارف عليها في اعتبار اقتصاد البلد ريعيا , , وهي نسبة كبيرة جدا % من الناتج المحلي االجمالي 30العوائد الريعية الخارجية فيها نسبة تزيد عن . وهذا مؤشر خطير لتعرض الريعي العامة -ةالدولة نفقاتها تغطية بشكل رئيس في النفط ايرادات على النفط -المعتمدة أسعار تقلبات الى عالميا . معدل النمو 3/2022 معدل النمو 2/2022 1/2022 12/2021 التفاصيل معدل كمية النفط المصدر ( مليون برميل)اليومية 3,27 3,2 3,3 3,24 % 30 94,9 83,8 72,8 معدل سعر البيع 110,5 51 % american journal of business management, economics and banking volume 19 december, 2023 p a g e | 12 www.americanjournal.org االيرادات والنفقات العامة: 3-3 ( االيرادات والنفقات العامة3جدول ) 2022الربع األول من 2021 التفاصيل مليار دوالر 85 االيرادات المتحققة مليار دوالر 31 مليار دوالر 76,5 النفقات الفعلية مليار دوالر 19 /الفائض العجز الفعلي مليار دوالر 8,5 مليار دوالر 12 حصة وزارتي الصناعة والزراعة في الموازنة العامة 1 % بتصرفhttp://www.mof.gov.iq/obs/ar/pages/rvexchart.aspx ,https://somooil.gov.iq/exportsالمصدر : وهو أقل -مليار دوالر 8,5بمقدار 2021بالرغم من تحقق فائض فعلي عن تنفيذ الموازنة العامة للدولة لسنة نتيجة ارتفاع اسعار 2022وبالرغم من تحقق ايرادات كبيرة في الربع األول لسنة بكثير من الفائض الحقيقي وتحقق فائض كبير عن الحاجة الفعلية للنفقات -السباب ترتبط بالحرب الروسية األوكرانية -النفط الخام المصدر لالستفادة من الفائض في انشاء مشاريع صناعية أو زراعية تنموية, نجد أي مبادرة حقيقية العامة في العراق, ال سواء في الوقت الحاضر الذي أدت فيه تلك لتنويع مصادر الدخل أو لتقليل تداعيات الحرب الروسية االوكرانية كون الحرب الى ارتفاع اسعار المواد الغذائية, الغاز, الحديد, وبقية السلع األساسية, سواء بشكل مباشر نتيجة ل روسيا واوكرانيا المصدر األكبر عالميا , أو بشكل غير مباشر نتيجة ارتفاع أسعار الوقود والنقل والتأمين. فكما ( فان ما خصصته الحكومة العراقية لوزارتي الصناعة والزراعة )مجتمعة( في الموازنة العامة 3مشار في الجدول) % من اجمالي التخصيصات, مع خلو تلك التخصيصات من انشاء مشاريع صناعية 1يتجاوز عن ال 2021لسنة أو زراعية. ويستنتج الباحثين بأن استمرار السياسة االقتصادية في العراق على ما هي عليه للسنوات السابقة من تضخيم لألمن الغذائي والتنمية, الطارئ االنفاق التشغيلي, االستمرار باالقتراض كما هو مؤكد عليه في مشروع قانون الدعم واالنفاق العشوائي وهدر المال العام, واذا ما اتسعت دائرة الحرب الروسية االوكرانية فقد يتطلب من جميع الدول http://www.mof.gov.iq/obs/ar/pages/rvexchart.aspx https://somooil.gov.iq/exports american journal of business management, economics and banking volume 19 december, 2023 p a g e | 13 www.americanjournal.org البحث -% من احتياجاته للسلع األساسية في حياة مواطنيه 97الذي يستورد أكثر من -المستوردة ومنها العراق الجريمة, الجوع, الفقر, سينتشر وإال الغذائية, وارداتها لتمويل الصعبة بالعملة المالية الموارد من مزيد عن االضطرابات, تراكم الديون, واالفالس, وستنهار العديد من الدول. اختبار الفرضيات: .3 فرضي اختبار األساليب ةتم باستخدام الدراسة ب المناسبة اإلحصائية الحزم ممثلة برنامج في اإلحصائية (spss) . اختبار فرضية الدراسة: ho استثمار األموال الفائضة في تنمية الصناعة والزراعة , و تسعى الحكومة العراقية الى ترشيد النفقات العامة : ال المحلية. ha الصناعة والزراعة استثمار األموال الفائضة في تنمية و , تسعى الحكومة العراقية الى ترشيد النفقات العامة: المحلية. زيادة النفقات قياسًا الى زيادة االيرادات var0000 1 pearson correlation 1 .584 sig. (2-tailed) .224 n 6 6 var0000 2 pearson correlation .584 1 sig. (2-tailed) .224 n 6 6 0,584 موجبة, وهي أقل من 0,7 و أكبر من 0,4 ويشير ذلك الى العالقة بين rيتضح من الجدول ان قيمة المتغيرين طردية ايجابا كلما زادت االيرادات, زادت معه النفقات بين حجم النفقات العامة و زيادة االيرادات. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 14 www.americanjournal.org وبما ان قيمة الداللة كانت 0.224 وهي < 0,05 , بذلك نقبل الفرضية الصفرية, إذ ال تسعى الحكومة العراقية في تنمية تستثمره ل لم تسعى أن يكون لديها فائض على ان الحكومة العراقية يؤكد مما .النفقات العامة ترشيد الى الصناعة والزراعة المحلية. االستنتاجات: النظام .1 تغير الروسية االوكرانية قد الحرب العالمي بشكل ملحوظ. كما ساهمت في ارتفاع ان االقتصادي أسعار النفط الخام المصدر بنسبة أكبر من ارتفاع أسعار بعض السلع األساسية المستوردة بالنسبة للعراق. .بالديون والفوائد المستوردة للطاقة والسلع الغذائيةإغراق الدول و قد تؤدي الى .2 زيادة النفقات التشغيلية في العراق دون االستفادة من الفائض الحقيقي عن تنفيذ الموازنة العامة في انشاء .3 المشاريع التنموية قد يؤدي الى انهيار االقتصاد العراقي في حال اتساع نطاق الحرب الروسية االوكرانية. تخبط السياسة االقتصادية العراقية, قد يؤدي الى افالس العراق إذا ما انخفضت أسعار النفط ان االستمرار في .4 . أو قلت كمياته التصديرية التوصيات: ينبغي االستفادة من فروقات االسعار والكميات المصدرة من النفط الخام في تنمية االقتصاد العراقي وترشيد .1 إنشاء صندوق سيادي يستثمر فيه الفائض المتأتي من أموال صادرات المورد من خالل االستهالك المحلي والمشاريع الصناعية والزراعية لتحقيق قدر من االكتفاء الذاتي. ، تنمية الصناعة التحويلةفي )النفط(الريعي .باتجاه انتاج السلع والخدمات الطبيعة الريعية لتقليلالتحول التدريجي و تعزيز دور القطاع الخاص، .2 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 15 www.americanjournal.org مشروع الحزام -االقتصادي العالمي الجديد العمل على تأمين األمن االقتصادي من خالل االنخراط بالنظام .3 الذي سيحقق للمشتركين به استثمارا حقيقيا بالمنشآت الصناعية والزراعية, والتبادل التجاري بين -والطريق أعضائه على أقل تقدير, وبحماية مشتركة ممن يمتلك متطلبات تلك الحماية عسكريا وماليا . المصادر: ، المجلة 2014 2000(, مناخ الدولة الريعية وتناقضات السياسة العامة في الجزائر 2019رفيق, صديقي،) .1 , الجزائر. 103،ص 7، العدد 7العلمية المستقبل االقتصادي، المجلد (, تشخيص المرض الهولندي ومقومات إصالح االقتصاد الريعي في العراق، 2010الشمري, مايع شبيب،) .2 , الكوفة, العراق.33, ص 15، العدد 3االقتصادية واالدارية, المجلد مجلة الغري للعلوم (,مساهمة االقتصاد ألريعي في تعويق الحكم الرشيد , مجلة جامعة 2016شمس الدين, تحسين حمة سعيد, ) .3 . 107, ص 2016, كانون األول 4, العدد 2التنمية البشرية , المجلد , 21( , الدولة الريعية وصياغة النظم االقليمية, المجلة السياسية والدولية, مجلد 2012شهاب, سالم جبار,) .4 . 150ص . 8, ص 86(، "االقتصاد السياسي للدولة الريعية، الحوار المتمدن, العدد 2002عبد هللا, خالد,) .5 مؤسسة حالة العراق, -(, االقتصاد الريعي وبناء الديمقراطية: الثنائية المستحيلة 2013ياسر, صالح,) .6 . 3فريدريش إيبرت، مكتب األردن والعراق, العراق, ص 7. http://www.fcdrs.com (, مساوئ الدولة الريعية : العراق ومشكلة اسعار النفط ، مركز الفرات 2014الياسري، حوراء رشيد مهدي,) للتنمية والدراسات االستراتيجية، الموقع االلكتروني: 8. https://www.aljazeera.net/ebusiness/2022/3/22 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 16 www.americanjournal.org الة منشورة على على االقتصاد العالمي، مق أوكرانيا(، ما مدى تأثير حرب روسيا 2022المنشاوي, محمد ,) موقع الجزيرة نت 9. https://aawsat.com/home/article/ ،وليد خدوري . 2022 10. http://www.parliament.gov.sy/sd/msf/ .8( ،األبعاد االجتماعية لالقتصاد الريعي في سوريا, ص 2010إبراهيم, غسان,) 11. https://rawabetcenter.com/archives 12. https://www.aljazeera.net/opinions/ 13. https://www.youm7.com/story/2022 . 14. https://www.albawabhnews.com . https://aawsat.com/home/article/ https://www.youm7.com/story/2022 https://www.albawabhnews.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 211 www.americanjournal.org response of shareholder value variation for inflation in the iraqi economy mediated by stocks pricing efficiency (an applied of a number of institutions registered in the iraq stock exchange) mustafa hussein hassan (1) imam al-kadhum college (ikc) mustafahussein@alkadhum-col.edu.iq mustafaajabar719@gmail.com estabraq mahmood jarallah (2) business administration / college of administration & economics alfarahidi university estabraq.mahmood@uoalfarahidi.edu.iq haider nassrullah dawood (3) al naharain universitybusiness economics college haider_nasrallah@nahrainuniv.edu.iq a b s t r a c t k e y w o r d s the aims of research test the effect of inflation as one of the macroeconomic factors affecting investment activities, on shareholder value that measured by of economic value added as a primary goal that the company seeks to maximize through achieving a return on capital that exceeds its cost in the stock market, and the extent of the change that occurs when entering efficiency of stock pricing as a mediating variable, so in order to test the relationship of influence, the researcher intended to identify (10) institutions works in the iraqi market and shares are registered in the iraq stock exchange for the period extending from (2011-2020) monthly, from different sectors (banking, industrial, service), so the data will be of the type (panel data) with number of observations (1200), to measurement of inflation variable was using the consumer price index, shareholder value variable by added market value, and the pricing efficiency variable by the treynor model, so for testing the mediation hypotheses using dynamic models were adopted, specifically the generalized moments model (gmm), results showed that there is a direct positive effect of inflation on shareholder value, as well as an indirect positive effect of inflation on shareholder value through pricing efficiency. shareholder value, inflation, pricing efficiency, economic value added, generalized moments model. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 212 www.americanjournal.org introduction traditionally, at the financial management level, the goal of companies is achieve and increase profits, but differ in agreeing on this goal as must be taken into account, such as survival, sustainability, avoiding financial distress , bankruptcy, increasing sales, and other goals that, do not reflect the nature of the primary goal ( the intention )? and it is in whose interest?, and how to manage the conflict to balance the interests of the manager and shareholders, shareholders and debits, and the need for survival and social responsibility. but many experts believe that maximizing shareholder value is the fundamental goal of financial management and companies. investors who have invested their money in the financial assets of companies in the financial markets expect that companies will work to maximize their wealth by creating economic value added to their shares that exceeds their book value, so maximizing earnings per share. therefore, it is necessary to study a group of factors that could generate an impact or create a variation in shareholder value, and one of them and foremost is inflation as a macroeconomic factor. stock trading in the financial market depends, in terms of volume and values, on the stability of factors that generate systemic risks, which can be reflected in market performance and then in the values of traded companies’ shares and the extent of their ability to achieve levels exceeding their nominal value according to inflation rates. accordingly, the value depends on an investor who contributes to the capital of a number of companies with the aim of maximizing his wealth from his limited resources, based on a set of factors and higher growth possibilities if efficient pricing is achieved based on the closeness of the market values of shares to their real values, subject to the alignment between the cash flows expected from investing in them and the amount of compensation for the risks resulting from them. according to the above, the problem can be summarized: the extent of the effect of inflation on the in shareholder value variation with the presence of pricing efficiency as an intermediary variable. thus, the research can aim to determine the causal relationship between inflation and the variation occurring in shareholder value, and estimating it through the role the mediator of pricing efficiency, as well as the possibility of revealing aspects of strength in the financial market by describing the economic and financial measures used and the mechanisms that help the shareholder to maximize his wealth. therefore, the importance of research is focused in particular on the worsening phenomenon of inflation and the increase in price levels and then the decline in the purchasing power of money at a time when the ability of companies to achieve profitable returns on investment in their shares declines as a result of their prices falling or rising, but at rates less than the increase in inflation rates, and thus they lose their ability to achieve economic value addedthat enables them to continue carrying out their activities without the need to increase their capital and avoid expanding the ownership base. it is hoped that the current research will serve as a serious scientific attempt to study the mechanism of avoiding the negative effects resulting from the rise in price levels and the erosion of the value of the currency, and then the decline in the performance levels of the entire financial market and the resulting negative effects on the decline in the ability of companies listed in the financial market itself in terms of their failure to achieving added market value. 2. literary review investment activities in the market are affected by many factors that may enhance trading and thus maximize shareholder value, that is, maximize the value of assets traded in the market. according to (thenmozhi ,2000), maximizing shareholder value has always been the ultimate goal of every american journal of business management, economics and banking volume 20 january, 2024 p a g e | 213 www.americanjournal.org company, so investors must be very careful to evaluate the financial performance of companies is linked to the wealth of shareholders. it is clear that value-based measures that measure performance in terms of change in value receive great attention, and as a result (omran et al., 2001), confirmed that the inflation rate has an impact on the performance of the stock market in general, emphasized (konchitchki,2011) by studying the impact of inflation on financial statements, the results of inflation on companies may explore future cash flows, that is, gains and losses are transformed into cash flows and large returns that are unusual for trading strategies based on inflation. it is also clear that stock prices move as if investors do not they fully distinguish between cash and non-cash assets, which is key to determining the effects of inflation. within the framework of determining the impact of inflation on liquidity in the stock market, (jepkemei,2012) pointed out that there is a negative relationship between stock market liquidity and inflation, in contrast to fisher’s hypothesis, by highlighting the process of price discovery in the market that indicates that investors fail to determine the impact of inflation on stocks in the stock market. on the other hand, (asri,2017) expanded the experimental test to include studying the importance of inflation, exchange rates, economic value added, and capitalization, as they are important variables in determining the economic situation, and it becomes clear that inflation and economic value have a negative impact on the performance of companies. inflation: the concept of inflation was first used in the united states during the civil war in 1861, which expressed the excessive issuance of money in order to cover the growing war expenses, but it changed after world war ii to express the issuance of money without cover, and after that it continued to develop to indicate the continuous rise in the general level of prices over time. (touati, 2020:15), or it is “the percentage of annual price increases” (youssefat, 2021:68), “the continuous rise in the general level of prices that leads to a decline in the value of the currency, and a decline in purchasing power due to the imbalance between the demand for goods and services.” and the supply of it, or an increase in the quantity of money in circulation without being matched by a real increase in production, which leads to a total imbalance” (ben zarrouk, 2021: 50). inflation rates may vary significantly over time and depending on the country, when the inflation rate reaches a very high level with prices changing daily or hourly, the economy tends to function poorly, and high inflation quickly erodes the purchasing power of money, forcing people to spend their money as soon as they have it (abel et al, 2011). inflation may be generated due to an increase in aggregate demand as a result of any of the factors such as a decrease in the interest rate, an increase in the amount of money, an increase in government spending, a reduction in taxes, an increase in exports and an increase in investment (parkin, 2016), thus consumer spending increases, which may not be matched by a real increase in production and thus decreases. purchasing power and inflation occurs (baranzini et al, 2005), and increases in production costs may lead to inflation as a result of the increase in cash directed to compensate for the decrease in the supply of energy and raw materials (parkin, 2016). inflation may also be attributed to the influence of structural factors (totonchi, 2011). shareholder value: financial management is responsible for achieving optimal compatibility between the conflicting goals of stakeholders, ensuring that the value of the entity or shareholders is enhanced, according to american journal of business management, economics and banking volume 20 january, 2024 p a g e | 214 www.americanjournal.org the cash flows generated by the financial markets (schuster, 2000), and the change in the company’s investment over time can be considered a reflection of the value of the company. shareholders, i.e. stock values (johnson, 2001), also represent the difference between the wealth held by shareholders at the end of a given year and the wealth they owned in the previous year (fernández, 2001). shareholders look at the company’s prospects and their expectations for future performance along with market trends (stock price fluctuations), thus two directions are generated in determining the source of value, internally as a result of companies’ performance or externally as a result of future expectations (lafrenz, 2004). creating shareholder value depends on the company's cash flows exceeding their expectations by making the optimal decision, especially the investment decision to ensure the ownership of successful current investments (mishkin, 2015), and adding new promising investments that require continuous evaluation of the portfolio (asaf, 2004). managers may lack accuracy in finding a balance between different interests, so they do not focus more on maximizing shareholder value, which does not always mean maximizing share price, and thus failure to do so is a sign of administrative inefficiency in theory (yan, 2019), but it may harm the company seeks this goal in the long term as a result of the procedures it follows to maximize shareholder value, which may be reflected in the erosion of consumer confidence (stout, 2012). pricing efficiency: (samuelson, 1965) is the first to provide economic justifications for an efficient market, and (fama, 1965) emphasized that, in light of the available information, the actual prices at each estimated point must reflect well, and thus efficient financial markets are able to absorb directly and instantly all new information (hall, 2012). in general, stock prices respond primarily to fluctuations of supply and demand forces (gusni, 2016), because of a wide range internal and external factors (subing et al., 2017), and pricing efficiency is not only the extent to which the information is reflected, but also the sensitivity to the direction of the information (he& fang, 2019), and since prices always accurately reflect information, they are good signals of value and encourage better allocation of capital, so pricing efficiency crucially depends on information (zhao & pu, 2014). from the above, pricing efficiency can be defined as the degree to which stock prices reflect all available information, in a timely and accurate manner (saffi, 2008:8), and it is also known as the speed with which new information reaches market traders without a large time lag and without them incurring high costs. stock prices reflect all available information, and all investors have the opportunity to obtain that information at the same level of returns, but a small number of investors can achieve extraordinary returns, as this depends on how the information is analyzed (chhabra & gupta, 2020) . 3. methodology 3.1 research sample in order to test the experimental influence relationship between the research variables, the iraqi market was chosen as a research community, which is characterized by being an emerging market and includes a number of companies and financial institutions. to test this relationship, a number of companies and banks operating in the iraqi market and registered in the iraqi stock exchange were selected to include the sample (10) institutions for the period 2011 2020. accordingly, approximately (1,200) observations will be generated on a monthly for each company and for the period referred to. the availability of data, the establishment of the company, and the date of its american journal of business management, economics and banking volume 20 january, 2024 p a g e | 215 www.americanjournal.org registration in the iraq stock exchange were the basis for determining the form of the sample, which includes table (1) research sample: table (1) research sample sector company code banking sector trade bank of iraq doci bank of baghdad bbob al-ahly bank bnoi kurdistan bank bkul industrial sector the iraqi company for meat production and marketing ibsd the iraqi company for the production of carpets and furniture iitc baghdad soft drinks company sbpt service sector babylon hotel hbay baghdad hotel hmam al mansour hotel amef 3.2 measuring variables table (2) show a tools were measurement variables: table (2) measures of research variables variable code measuring inflation x consumer price index = cost of the index basket of the current period / cost of the index basket of the previous period ........... (1) shareholder value y economic value added= net operating profit after taxes cost of capital …(2) pricing efficiency z treynor model : t = (𝐑𝐢−𝐑𝐟) 𝛃𝐢 …………………. (3) so ri is the average monthly stock return, and is calculated : 𝐑𝐢 = 𝐏𝐭−𝐏𝐭−𝟏 𝐏𝐭−𝟏 rf: risk-free rate of return βi :the systematic risk of a stock is calculated :𝛃 = 𝐂𝐨𝐯𝐢،𝐦 𝛔𝐦 𝟐 table (3) shows inflation rates at the monthly level and for the period from 2012 to 2021, and according to the consumer price index shown in equation (1), which measures the prices of a number of market basket goods purchased by families, and the general rate of inflation during the research period was (1.86). with a standard deviation of (2.33) and a variance of (123%), which confirms the large variation in inflation values for the period covered by the research, the sample for the period under study recorded the highest inflation rate of (8.7) in the month of april 2012, and across years the year (2011) was recorded. the highest inflation rate was with an average of (5.61). these levels in that period can be attributed to the significant expansion in government operating spending and the rise in salaries of workers in the public sector. in contrast, the sample for the period under study recorded the lowest inflation in august of 2019 with a value of (-1.6) and an average of the same. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 216 www.americanjournal.org the year (-0.21), which reflects the reality of the effects of the pandemic that caused a recession in most global economies. table (3) inflation rates for the period 2011-2020 in the iraqi economy 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 jan 5.8 5.4 2.8 4 -0.4 -0.9 -0.9 0.4 0.6 0.5 feb 5.9 5.7 2.2 3 0.3 1.5 -0.8 -0.1 0.4 1 mar 5 8.3 1.3 2 0.2 1.8 0.3 -0.8 1.4 0.6 apr 5.8 8.7 1.2 1.5 0.5 2.1 1 -1.3 0.7 0.2 may 6.6 7.2 1.1 1.4 1.7 2.5 0.1 0.7 -0.8 0.7 jun 6.1 5.8 2.3 2.3 2.2 0.1 -0.1 1.7 -1 0.1 jul 6.2 5.7 2.5 2.3 2.6 -0.4 0.7 1.5 -1.6 -0.1 aug 5.2 7 0.1 2.7 2.6 0.2 0.2 0.2 -0.3 0 sep 5.1 6.4 0.3 2.1 2.1 0.3 0.4 0.1 -0.9 0.5 oct 4.8 4.8 3.1 0.9 1.6 0.2 0.1 1.1 -0.8 0.7 nov 4.8 4.5 2.7 3 1 -1 0.7 0.8 -0.3 -0.3 des 6 3.6 3.1 1.6 2.3 -0.7 0.8 -0.1 0.1 3.2 av. 5.61 6.09 1.89 2.23 1.39 0.48 0.21 0.35 -0.21 0.59 std. 0.60 1.51 1.05 0.85 1.04 1.21 0.59 0.88 0.87 0.91 cv. 0.11 0.25 0.56 0.38 0.74 2.55 2.85 2.52 -4.17 1.53 table (4) in the appendices shows the shareholder value of the companies in the research sample, measured using the added market value, which is the value of the company’s equity, which is calculated by finding the difference between the value of the enterprise and the capital invested in it. it is a measure of financial performance that is similar to any other traditional measures in achieving real economic profits for any business. a company, and the economic value added derives its importance by measuring the economic value of the business after considering the cost of capital, including the cost of debt and the cost of equity. it is clear that it is a measure of performance most closely related to the creation of shareholders’ wealth over time for the company’s business. the results have shown that the baghdad company soft drinks achieved the highest economic value addedat the level of the research sample for the period (2011-2020) in the month of march, amounting to (56,200) million for the year 2018, with an average value of (46,100) at the company level, as well as an average value of (22,900) million at the level of the research sample and for the same companies, in contrast, the iraqi trade bank recorded the lowest economic value added across all observations of the research sample (-270) million dinars in october of 2016, with an average at the company level of (-230) million, and an overall average for the sample of (1600) thousand dinars. on the other hand, table (5) in the appendices shows the results of calculating the treynor model in evaluating investment portfolios and is considered a measure of pricing efficiency. it is clear that the iraqi company for furniture and carpet production achieved the highest average evaluation factor of (5.22) in the year 2011, while the bank of baghdad recorded in the year 2013 had the lowest average evaluation factor of (0.0003), while at the level of the sample of institutions surveyed, the iraqi trade american journal of business management, economics and banking volume 20 january, 2024 p a g e | 217 www.americanjournal.org bank recorded the highest average evaluation factor for the period studied (2011-2020) by (0.57), while the bank recorded the lowest average evaluation factor for the period (2011-2020). ) by (-6.3). 3.3 testing research hypotheses the nature of the research variables, as well as the number of institutions and the period it covers on a monthly level, extending from (2011-2020), was imposed, which led to the generation of an average of (1200) views for each variable of the type (panel data). this type of data provides many characteristics that are not available in cross-sectional or longitudinal data (baltagi &baltagi, 2008:7). to ensure the validity of the hypothesis test, the data was tested and found that it was not normally distributed at a significance level higher than (0.05). although transformations were performed according to tukey’s ladder, it was not normally distributed. on the other hand, the test results showed stability. the data is used using the dickey fuller model and it is stable at a significance level (0.000). based on the above, dynamic estimation models can be used for panel data, which is characterized by being unbiased and consistent with static time series and bypassing the problems of autocorrelation. depending on the structure of the data, the moments model will be adopted. generalized (gmm) which includes: yit=λyi,t-1+βxit+µ+εit………………..(4) to test the research hypotheses according to the hypothetical model in figure (1), stata software will be adopted: 3.4 results the results of the hypothesis test are shown in table (6). the first hypothesis h1-1 was recorded, which states: there is a statistically significant effect of inflation as an independent variable on shareholder value measured using economic value added as a dependent variable at the level of the research sample for the period (2011-2020). the impact factor reached (0.459), which confirms the existence of a direct influence of inflation on the added market value, which is statistically significant at a level of significance (0.002). it means that the increase in steadily rising inflation rates at the level of the iraqi economy will lead to enhancing shareholder value, with a coefficient of determination ( r2) by (0.482), meaning that the effect of inflation explains the change in shareholder value by (48.2%), while the remaining (51.8%) is explained by other variables not observed in the research. thus, the test results deny the null hypothesis and confirm the alternative hypothesis, which states: a statistically significant effect of inflation on shareholder value at the level of the research sample. the second hypothesis h1-2 was recorded, which states: there is a statistically significant effect of the inflation variable as an independent variable on the pricing efficiency variable as a dependent variable. the influence factor reached (1.90), which confirms the there is a relationship of direct influence of inflation on value and pricing efficiency, at a significant level (0.404), which is not statistically significant. this means that inflation does not explain the change in pricing efficiency. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 218 www.americanjournal.org thus, the test results confirm the null hypothesis which states: there is no statistically significant effect of inflation on pricing efficiency. pricing at the level of the research sample. the third hypothesis h1-3 was recorded, which states: there is a statistically significant effect of pricing efficiency as an independent variable on shareholder value measured using the economic value added as a dependent variable and with the presence of the inflation variable as a control variable at the level of the research sample for the period (20112020), and the impact factor reached (0.155), which confirms the existence of a direct impact relationship of pricing efficiency on added market value, which is statistically significant at a level of significance (0.009), which means that the increase in pricing efficiency will reflect positively on shareholders’ value and lead to its decline, with a coefficient of determination (r2) by (0.33), meaning that the effect of pricing efficiency explains the change in shareholder value by (33%), while the remaining (67%) is explained by other variables not observed in the research. thus, the test results negate the null hypothesis and confirm the alternative hypothesis, which states: : there is a statistically significant effect of pricing efficiency as an independent variable on shareholder value measured using the economic value added as a dependent variable and with the inflation variable as a monitoring variable. finally, the test of the fourth hypothesis h1-4 was recorded, which is the mediation hypothesis which states: there is a statistically significant effect of the variable. inflation in shareholder value is mediated by stock pricing efficiency, using structural equation modeling (sem) at the level of the research sample for the period (2011-2020). the impact factor reached (0.561), which confirms the existence of a direct influence of inflation in shareholder value with the presence of pricing efficiency as a mediating variable. the function is statistically significant at a level of significance (0.000), which means that the increase in the volume of inflation will positively affect shareholder value to a lesser extent in the presence of pricing efficiency as a mediator than directly, and with a coefficient of determination (r2) of (0.275), meaning that the effect of pricing efficiency explains the change in value. shareholders accounted for (27.5%), while the remaining (72.5%) was explained by other variables not observed in the research. thus, the test results negate the null hypothesis and confirm the alternative hypothesis, which states: there is a statistically significant effect of the inflation variable on shareholders’ value, mediated by pricing efficiency. table (6) hypothesis test results model: generalized moments model (gmm) number of views: 1200 cross section : 10 time: 1/2011 12/2020 (monthly) path ceof. err. z p>izi 2r inflation → shareholder value 0.459 0.838 1 0.002 0.482 inflation → pricing efficiency 1.90 2.272 3.7 0.404 0.274 pricing efficiency → shareholder value 0.155 0.010 3.95 0.009 0.330 inflation → pricing efficiency →shareholder value (sem) 0.561 0.743 3.64 0.000 0.275 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 219 www.americanjournal.org 4. conclusions it is clear from the results of measuring the research variables that there is a growth in the economic value added in general for the companies in the research sample for the period under investigation, and it is certainly attributable to several macroeconomic reasons, most notably inflation as the main explanatory variable in this research. the test results showed the presence of a direct effect and therefore it will be directly reflected in the share price directly, which leads to the emergence of a gap between the real price and the nominal price of the share. it is clear that the accurate reflection of information in the market in share prices will enhance this effect, and thus the mediation of the efficiency of pricing shares in the market enhances the effect of inflation on shareholder value because it will maximize the the returns increase and the gap between the economic value and the book value of capital assets, despite the fact that there is no significant effect of inflation on pricing 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(2021) the threshold of inflation and economic growth, al-bahith magazine, no. 11 pages (67-73) 26. zhao, z., & pu, y. (2014, november). the study of stock pricing efficiency in shanghai stock market—an empirical research based on spring oscillator theory. in 2014 international conference on mechatronics, electronic, industrial and control engineering (meic-14) (pp. 764-768). atlantis press. appendix(1) table (4) economic value added by the companies in the study sample during the study period dcoi bbob bnoi bkul sbpt iitc ibsd amef hbay hman 2011-1 7.12e+09 -4.7e+08 8.9e+09 5.4e+09 0 0 0 1.08e+11 5.23e+10 3.65e+10 11-feb 7.4e+09 -4.7e+08 8.25e+09 6.03e+09 6.63e+10 1.87e+09 2.4e+10 1.05e+11 5.47e+10 3.75e+10 11-mar 8e+09 -4.7e+08 8.25e+09 6.18e+09 1.01e+11 1.76e+09 2.27e+10 1.11e+11 5.6e+10 3.5e+10 11-apr 8e+09 -4.7e+08 7.5e+09 6.6e+09 1.06e+11 1.9e+09 2.27e+10 1.21e+11 5.27e+10 3.51e+10 11-may 8e+09 -4.7e+08 6.95e+09 5.46e+09 8.25e+10 1.89e+09 2.27e+10 1.2e+11 5.27e+10 3.32e+10 11-jun 8e+09 -4.7e+08 6.95e+09 5.46e+09 8.25e+10 1.89e+09 2.27e+10 1.2e+11 5.27e+10 3.32e+10 11-jul 8e+09 -4.7e+08 6.5e+09 7.2e+09 9e+10 1.73e+09 2.34e+10 1.2e+11 5.27e+10 3.27e+10 11-aug 8e+09 -4.7e+08 5.55e+09 7.2e+09 1.31e+11 1.72e+09 2.49e+10 1.14e+11 5.72e+10 3.46e+10 11-sep 8e+09 -4.7e+08 5.55e+09 7.2e+09 1.25e+11 1.78e+09 2.56e+10 1.04e+11 5.12e+10 3.46e+10 11-oct 5.89e+09 -4.7e+08 5.55e+09 7.2e+09 8.38e+10 1.83e+09 2.63e+10 1.04e+11 4.86e+10 3.85e+10 11-nov 5.37e+09 -4.7e+08 4.85e+09 7.2e+09 6.25e+10 2e+09 2.55e+10 1.05e+11 4.68e+10 3.85e+10 11-des 5.89e+09 -4.7e+08 4.45e+09 7.35e+09 6.75e+10 2e+09 2.66e+10 9.72e+10 4.46e+10 3.85e+10 av 6.64e+09 -4.3e+08 6.03e+09 6.09e+09 7.64e+10 1.54e+09 2.04e+10 1.01e+11 4.74e+10 3.29e+10 12-jan 4.62e+09 -4.7e+08 2.25e+09 7.2e+09 3.63e+10 1.85e+09 2.63e+10 8.48e+10 4.08e+10 3.85e+10 12-feb 5.27e+09 6.48e+08 5.2e+09 7.2e+09 3.75e+10 1.94e+09 3.06e+10 9e+10 4.25e+10 3.85e+10 12-mar 4.37e+09 1.44e+09 5.25e+09 7.2e+09 3.75e+10 1.93e+09 2.58e+10 8.77e+10 3.92e+10 3.85e+10 12-apr 3.4e+09 1.39e+09 4.6e+09 7.2e+09 3e+10 1.85e+09 2.58e+10 7.31e+10 3.65e+10 3.09e+10 12-may 2.81e+09 9.9e+08 5e+09 6.6e+09 1.38e+10 1.83e+09 2.88e+10 7.89e+10 3.73e+10 2.96e+10 12-jun 1.78e+09 6.75e+08 3.45e+09 6.45e+09 -2.5e+09 1.8e+09 2.71e+10 7.34e+10 3.62e+10 3.08e+10 12-jul 1.71e+09 7.92e+08 3.85e+09 5.58e+09 3.75e+09 1.73e+09 2.9e+10 9.5e+10 4.39e+10 2.96e+10 12-aug 1.78e+09 3.79e+09 4.4e+09 5.58e+09 1.5e+10 1.73e+09 3.06e+10 1.07e+11 4.25e+10 3.15e+10 12-sep 1.94e+09 2.67e+09 4.4e+09 5.4e+09 2.38e+10 1.75e+09 2.91e+10 9.32e+10 3.95e+10 3.08e+10 12-oct 6.79e+08 2.12e+09 4.4e+09 4.5e+09 3.63e+10 1.78e+09 2.91e+10 8.77e+10 3.95e+10 3.04e+10 12-nov 8.41e+08 2.16e+09 3.1e+09 4.71e+09 4.38e+10 1.76e+09 2.64e+10 9.06e+10 3.95e+10 2.93e+10 12-des 6.79e+08 2.31e+09 1.5e+09 4.5e+09 6.52e+10 1.8e+09 3.06e+10 9.94e+10 3.58e+10 2.9e+10 av 2.49e+09 1.54e+09 3.95e+09 6.01e+09 2.83e+10 1.81e+09 2.83e+10 8.84e+10 3.94e+10 3.23e+10 13-jan 3.23e+08 2.43e+09 0 4.2e+09 6.38e+10 1.76e+09 3.13e+10 8.46e+10 3.44e+10 2.84e+10 13-feb 5.82e+08 3.26e+09 -6e+08 4.5e+09 1.13e+11 1.78e+09 3.26e+10 8.77e+10 3.48e+10 2.88e+10 13-mar 2.59e+08 2.48e+09 -5e+08 3.72e+09 1.24e+11 1.83e+09 3.59e+10 8.33e+10 3.46e+10 2.88e+10 13-apr 1.29e+08 2.48e+09 -7.5e+08 3.3e+09 1.21e+11 1.96e+09 4.64e+10 7.61e+10 3.42e+10 2.96e+10 13-may 1.29e+08 2.61e+09 -5.5e+08 3.15e+09 1.97e+11 1.75e+09 4.46e+10 7.89e+10 3.55e+10 3.17e+10 13-jun -1.3e+08 3.29e+09 -5.5e+08 2.4e+09 2.43e+11 1.85e+09 4.43e+10 7.89e+10 3.64e+10 3.23e+10 13-jul -4.5e+08 3.06e+09 -4.5e+08 3.17e+09 2.17e+11 1.79e+09 3.84e+10 7.89e+10 3.71e+10 3.19e+10 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 221 www.americanjournal.org 13-aug -1.9e+08 2.88e+09 -4e+08 2.7e+09 2.29e+11 1.68e+09 3.84e+10 7.89e+10 3.65e+10 3.27e+10 13-sep -3.2e+08 2.7e+09 -7.5e+08 2.57e+09 1.74e+11 1.58e+09 3.92e+10 7.89e+10 4.35e+10 3.27e+10 13-oct -2.6e+08 2.25e+09 -7e+08 3.6e+09 2.18e+11 1.6e+09 3.34e+10 7.75e+10 4.89e+10 3.27e+10 13-nov -4.5e+08 1.89e+09 -7e+08 3.3e+09 2.22e+11 1.6e+09 3.18e+10 8.1e+10 5.66e+10 3.84e+10 13-des -6.5e+08 1.62e+09 -5e+08 3.45e+09 2.65e+11 1.58e+09 3.05e+10 7.85e+10 5.94e+10 4.04e+10 av -8.6e+07 2.58e+09 -5.4e+08 3.34e+09 1.82e+11 1.73e+09 3.72e+10 8.03e+10 4.1e+10 3.24e+10 14-jan -7.1e+08 1.4e+09 -6.5e+08 2.61e+09 3.05e+11 1.75e+09 3.05e+10 7.31e+10 6.62e+10 3.96e+10 14-feb -1.1e+09 1.4e+09 -8e+08 3.45e+09 2.57e+11 1.65e+09 2.35e+10 7.89e+10 7.97e+10 3.88e+10 14-mar -1.2e+09 1.4e+09 -6e+08 3.3e+09 2.7e+11 1.63e+09 2.56e+10 7.82e+10 8.64e+10 4.23e+10 14-apr -1.1e+09 1.4e+09 -9e+08 3.3e+09 2.65e+11 1.68e+09 2.48e+10 7.6e+10 9.38e+10 4e+10 14-may -1.6e+09 2.34e+09 -3e+08 2.7e+09 2.66e+11 1.68e+09 2.66e+10 7.97e+10 1.07e+11 4.75e+10 14-jun -1.9e+09 2.25e+09 -7.5e+08 2.7e+09 2.62e+11 1.63e+09 2.22e+10 7.25e+10 1.07e+11 3.77e+10 14-jul -2.3e+09 1.98e+09 -5e+08 2.4e+09 1.64e+11 1.63e+09 1.94e+10 7.59e+10 9.48e+10 4e+10 14-aug -2.3e+09 1.98e+09 -6.5e+08 1.8e+09 1.82e+11 1.2e+09 1.99e+10 7.53e+10 9.32e+10 4.04e+10 14-sep -1.7e+09 1.86e+09 -1.3e+09 2.4e+09 1.78e+11 1.28e+09 2.17e+10 7.82e+10 1.22e+11 3.75e+10 14-oct -2.1e+09 1.71e+09 -1.3e+09 2.27e+09 1.86e+11 1.28e+09 2.02e+10 7.31e+10 9.71e+10 3.82e+10 14-nov -1.8e+09 1.58e+09 -1.3e+09 2.4e+09 1.73e+11 1.23e+09 2e+10 7.02e+10 9.72e+10 3.56e+10 14-des -1e+09 2.25e+09 -1.9e+09 2.03e+09 1.68e+11 1.63e+09 2.84e+10 6.97e+10 1.07e+11 3.79e+10 av -1.6e+09 1.79e+09 -9e+08 2.61e+09 2.23e+11 1.52e+09 2.36e+10 7.5e+10 9.58e+10 3.96e+10 15-jan -1.3e+09 1.8e+09 -2e+09 1.9e+09 1.33e+11 1.55e+09 2.06e+10 6.72e+10 1.11e+11 3.49e+10 15-feb -1.7e+09 1.69e+09 -2.2e+09 2.03e+09 7.98e+10 1.4e+09 1.44e+10 4.96e+10 1.07e+11 3.54e+10 15-mar -1.6e+09 1.94e+09 -1.9e+09 1.8e+09 9.98e+10 1.48e+09 1.65e+10 6.07e+10 1.05e+11 3.21e+10 15-apr -1.7e+09 2.06e+09 -1.5e+09 1.91e+09 9.58e+10 1.48e+09 1.66e+10 5.82e+10 1.01e+11 3.08e+10 15-may -1.7e+09 1.89e+09 -1.8e+09 1.83e+09 1.34e+11 1.5e+09 1.55e+10 6.42e+10 1.01e+11 3.11e+10 15-jun -5.2e+08 1.98e+09 -1.7e+09 1.86e+09 2.95e+11 1.33e+09 1.55e+10 6.28e+10 9.45e+10 2.69e+10 15-jul -4.5e+08 1.89e+09 -1.4e+09 1.91e+09 2.07e+11 1.2e+09 1.46e+10 6.23e+10 7.16e+10 2.66e+10 15-aug -7.8e+08 1.71e+09 -1.9e+09 1.83e+09 1.89e+11 1.25e+09 1.4e+10 6.23e+10 6.24e+10 2.58e+10 15-sep -4.5e+08 1.4e+09 -2.2e+09 1.73e+09 1.78e+11 1.5e+09 1.4e+10 6.23e+10 7.02e+10 2.56e+10 15-oct -7.1e+08 1.6e+09 -2.1e+09 1.7e+09 1.09e+11 1.45e+09 1.53e+10 5.58e+10 8.15e+10 2.4e+10 15-nov -1.6e+09 1.8e+09 -1.6e+09 1.8e+09 2.58e+11 1.64e+09 1.83e+10 4.12e+10 7e+10 2.29e+10 15-des -1.6e+09 1.8e+09 -1.6e+09 1.8e+09 2.58e+11 1.64e+09 1.83e+10 4.12e+10 7e+10 2.29e+10 av -1.2e+09 1.8e+09 -1.8e+09 1.84e+09 1.7e+11 1.45e+09 1.61e+10 5.73e+10 8.7e+10 2.82e+10 16-jan -1.7e+09 1.9e+09 -2e+09 1.8e+09 2.27e+11 1.36e+09 1.25e+10 3.95e+10 6.1e+10 2.02e+10 16-feb -2.2e+09 1.57e+09 -2.1e+09 1.83e+09 2.15e+11 1.53e+09 1e+10 4.22e+10 6.03e+10 2.54e+10 16-mar -2e+09 1.5e+09 -2.1e+09 1.82e+09 2.06e+11 1.58e+09 7.5e+09 4.21e+10 6e+10 2.46e+10 16-apr -2.3e+09 1.35e+09 -2.3e+09 1.89e+09 1.58e+11 1.78e+09 8.15e+09 3.8e+10 5.32e+10 2.56e+10 16-may -2.3e+09 1.25e+09 -2.3e+09 1.89e+09 1.36e+11 1.65e+09 7.75e+09 3.2e+10 4.61e+10 2.25e+10 16-jun -2.5e+09 2.4e+09 -2.3e+09 1.89e+09 1.29e+11 1.7e+09 6.8e+09 3.71e+10 4.48e+10 3.11e+10 16-jul -2.5e+09 2.21e+09 -2.3e+09 1.83e+09 1.29e+11 1.85e+09 8.25e+09 3.8e+10 4.5e+10 3.11e+10 16-aug -2.5e+09 1.72e+09 -2.5e+09 1.83e+09 1.29e+11 1.75e+09 8.25e+09 3.92e+10 4.72e+10 3.08e+10 16-sep -2.5e+09 2.03e+09 -2.5e+09 1.74e+09 1.29e+11 1.78e+09 8.55e+09 3.92e+10 4.72e+10 3.08e+10 16-oct -2.7e+09 2.1e+09 -2.5e+09 1.74e+09 1.73e+11 2.05e+09 9.5e+09 3.92e+10 6.78e+10 3.08e+10 16-nov -2.1e+09 3.05e+09 -2.5e+09 1.8e+09 2e+11 2e+09 1.16e+10 5.26e+10 6.65e+10 3.57e+10 16-des -2.1e+09 3.14e+09 -2.5e+09 1.98e+09 2e+11 2.08e+09 1.34e+10 5.85e+10 6.3e+10 3.46e+10 av -2.3e+09 2.02e+09 -2.3e+09 1.84e+09 1.69e+11 1.76e+09 9.35e+09 4.15e+10 5.52e+10 2.86e+10 17-jan -2.1e+09 3.4e+09 -2.5e+09 2.1e+09 3e+11 2.5e+09 1.05e+10 5.85e+10 6.4e+10 3.13e+10 17-feb -2.1e+09 3.22e+09 -2.5e+09 2.12e+09 2.93e+11 3.48e+09 1.05e+10 4.75e+10 6.2e+10 3.17e+10 17-mar -2.3e+09 3.2e+09 -2.5e+09 2.12e+09 2.41e+11 3.33e+09 1e+10 4.55e+10 5.6e+10 2.96e+10 17-apr -2.3e+09 3.2e+09 -2.5e+09 2.12e+09 2.41e+11 3.33e+09 1e+10 4.55e+10 5.6e+10 2.96e+10 17-may -2.5e+09 3e+09 -1.9e+09 2.12e+09 2.75e+11 3.53e+09 9.7e+09 3.54e+10 5e+10 2.58e+10 17-jun -2.4e+09 1.99e+09 -1.4e+09 2.12e+09 2.66e+11 3.48e+09 9.5e+09 3.8e+10 4.65e+10 2.61e+10 17-jul -2.1e+09 1.8e+09 -1.4e+09 2.12e+09 2.54e+11 3.35e+09 9.1e+09 3.89e+10 4.6e+10 3.08e+10 17-aug -2.1e+09 3e+09 -1.7e+09 2.12e+09 2.82e+11 3e+09 1e+10 3.65e+10 6e+10 3.21e+10 17-sep -2.1e+09 2.3e+09 -2e+09 2.12e+09 2.62e+11 3.05e+09 9e+09 3.51e+10 6.65e+10 2.73e+10 17-oct -2e+09 4.15e+09 -1.8e+09 2.13e+09 2.71e+11 3.62e+09 1.08e+10 3.51e+10 7.2e+10 2.77e+10 17-nov -2e+09 3.9e+09 -1.9e+09 2.18e+09 2.75e+11 3.62e+09 1.13e+10 3.22e+10 6.6e+10 2.81e+10 17-des -2e+09 3.9e+09 -1.5e+09 2.12e+09 2.98e+11 3.55e+09 3.47e+10 3.18e+10 7.3e+10 2.86e+10 av 1.4e+08 5.59e+08 3.75e+08 10625000 1.55e+10 2.34e+08 3.77e+09 6.16e+09 7.44e+09 1.79e+09 18-jan -2e+09 4.9e+09 -1.5e+09 2.12e+09 3.99e+11 3.5e+09 2.28e+10 2.98e+10 8.16e+10 2.73e+10 18-feb -2e+09 5.23e+09 4.65e+09 2.12e+09 5.27e+11 3.53e+09 2.2e+10 3.81e+10 1.16e+11 2.89e+10 18-mar -2e+09 4.75e+09 6.95e+09 2.12e+09 5.62e+11 3.56e+09 2.45e+10 4.03e+10 1.18e+11 2.88e+10 18-apr -2e+09 4.8e+09 4.65e+09 2.12e+09 5.32e+11 3.5e+09 2.45e+10 3.48e+10 1.15e+11 2.92e+10 18-may -2e+09 4.3e+09 6.65e+09 2.28e+09 5.52e+11 3.43e+09 1.84e+10 3.22e+10 1.24e+11 3e+10 18-jun -2e+09 4.45e+09 5e+09 3e+09 5.44e+11 3.35e+09 1.6e+10 3.22e+10 9.4e+10 2.92e+10 18-jul -1.2e+09 4e+09 4.9e+09 3.15e+09 5.28e+11 3.25e+09 1.65e+10 3.07e+10 9.2e+10 2.83e+10 18-aug -2e+09 4.45e+09 5e+09 3e+09 5.44e+11 3.35e+09 1.6e+10 3.22e+10 9.4e+10 2.92e+10 18-sep -2.2e+09 3.27e+09 3.75e+09 3.3e+09 5.02e+11 3.2e+09 1.9e+10 3.23e+10 9.32e+10 2.85e+10 18-oct -2.4e+09 2.89e+09 3.75e+09 2.63e+09 4.7e+11 3.05e+09 1.68e+10 3.07e+10 9.32e+10 3.08e+10 18-nov -2.4e+09 2.98e+09 3.75e+09 2.63e+09 4.56e+11 3.13e+09 1.65e+10 3.07e+10 8.72e+10 2.88e+10 18-des -2.3e+09 2.99e+09 3.75e+09 2.45e+09 4.59e+11 3.49e+09 2e+10 3.22e+10 8.7e+10 2.9e+10 av -1.9e+09 3.71e+09 3.86e+09 2.32e+09 4.61e+11 3.08e+09 1.81e+10 3.03e+10 9.18e+10 2.66e+10 19-jan -2.3e+09 3.17e+09 3.75e+09 2.52e+09 4.26e+11 3.65e+09 1.57e+10 3.19e+10 9.8e+10 2.79e+10 19-feb -2.4e+09 2.85e+09 3.75e+09 2.52e+09 3.1e+11 3.45e+09 1.43e+10 3.51e+10 1.2e+11 2.71e+10 19-mar -2.3e+09 4.3e+09 4.3e+09 2.4e+09 3.37e+11 3.48e+09 1.52e+10 3.36e+10 1.2e+11 2.81e+10 19-apr -2.2e+09 4.75e+09 3.5e+09 2.55e+09 3.79e+11 3.56e+09 1.55e+10 3.51e+10 1.17e+11 2.73e+10 19-may -1.8e+09 4.85e+09 3.15e+09 2.4e+09 4.52e+11 3.35e+09 1.58e+10 3.2e+10 1.21e+11 2.92e+10 19-jun -1.8e+09 4.85e+09 3.15e+09 2.4e+09 4.52e+11 3.35e+09 1.58e+10 3.2e+10 1.21e+11 2.92e+10 19-jul -1.7e+09 4.6e+09 2.25e+09 2.4e+09 4.22e+11 3.5e+09 1.73e+10 3.22e+10 1.18e+11 3.04e+10 19-aug -1.5e+09 4.6e+09 3.55e+09 2.33e+09 4.01e+11 3.55e+09 1.7e+10 3.22e+10 1.17e+11 2.84e+10 19-sep -7.1e+08 4.4e+09 6e+09 2.33e+09 4.19e+11 3.75e+09 1.75e+10 3.22e+10 1.18e+11 2.76e+10 19-oct -5.2e+08 4.5e+09 6.6e+09 2.33e+09 4.26e+11 3.6e+09 1.7e+10 3.22e+10 1.32e+11 2.81e+10 19-nov 7.76e+08 5.5e+09 6.75e+09 2.33e+09 4.15e+11 3.8e+09 1.9e+10 3.22e+10 1.38e+11 2.81e+10 19-des -3.2e+08 5.5e+09 9.15e+09 2.33e+09 4.06e+11 3.93e+09 1.88e+10 3.51e+10 1.48e+11 2.85e+10 av -1.4e+09 4.49e+09 4.66e+09 2.4e+09 4.04e+11 3.58e+09 1.66e+10 3.3e+10 1.22e+11 2.83e+10 20-jan 1.68e+09 5.45e+09 1e+10 2.33e+09 3.46e+11 4e+09 1.81e+10 3.58e+10 1.36e+11 2.77e+10 20-feb 1.62e+09 5.5e+09 9.5e+09 2.34e+09 2.84e+11 4.25e+09 2e+10 3.14e+10 1.42e+11 2.69e+10 20-mar 1.29e+09 5.35e+09 9e+09 2.36e+09 2.36e+11 4.55e+09 1.8e+10 2.92e+10 1.22e+11 2.71e+10 20-apr 2.59e+08 5.35e+09 9e+09 2.36e+09 1.79e+11 4.06e+09 1.59e+10 2.61e+10 1.12e+11 2.56e+10 20-may 1.75e+09 5.3e+09 8.5e+09 2.23e+09 2.11e+11 4.3e+09 1.7e+10 2.85e+10 1.23e+11 2.54e+10 20-jun 1.75e+09 4.9e+09 8.5e+09 2.23e+09 2.7e+11 4.05e+09 1.65e+10 2.85e+10 1.22e+11 2.5e+10 20-jul 1.42e+09 5.3e+09 8e+09 2.23e+09 2.93e+11 4.13e+09 1.63e+10 2.7e+10 1.28e+11 2.56e+10 20-aug 1.23e+09 7.72e+09 8e+09 2.25e+09 3.46e+11 4.2e+09 1.73e+10 2.65e+10 1.42e+11 2.73e+10 20-sep 9.7e+08 9.25e+09 7.75e+09 2.25e+09 4.24e+11 4.45e+09 1.7e+10 2.41e+10 1.74e+11 2.54e+10 20-oct 3.88e+08 5.71e+09 8e+09 2.51e+09 4.26e+11 4.18e+09 1.95e+10 2.34e+10 1.68e+11 2.63e+10 20-nov 2.98e+09 5.65e+09 7.85e+09 2.51e+09 4.47e+11 4.38e+09 1.83e+10 2.34e+10 1.56e+11 2.67e+10 20-des 2.98e+09 5.65e+09 7.85e+09 2.51e+09 4.47e+11 4.38e+09 1.83e+10 2.34e+10 1.56e+11 2.67e+10 av 1.39e+09 5.46e+09 7.84e+09 2.13e+09 2.88e+11 3.88e+09 1.61e+10 2.53e+10 1.27e+11 2.41e+10 total av. -1.6e+07 2.63e+09 1.9e+09 3.1e+09 2.29e+11 2.39e+09 1.99e+10 5.77e+10 7.73e+10 3.05e+10 std. 2.87e+09 1.86e+09 3.89e+09 1.75e+09 1.47e+11 1.08e+09 9.25e+09 2.84e+10 3.68e+10 6.85e+09 cv. -182.225 0.706756 2.045274 0.566132 0.64163 0.451654 0.463716 0.492896 0.475583 0.225025 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 222 www.americanjournal.org table(5) treynor ratio for the companies in the study sample during the study period dcoi bbob bnoi bkul sbpt iitc ibsd amef hbay hman 2011-1 0.05558 0.0690995 0.0187703 0.136197 -0.0197153 -1.8308624 0.0265326 -0.0379031 0.01551504 -0.0440633 11-feb 0.0770706 0.0499927 0.0313732 0.069668 -0.0876765 1.0810235 0.6198973 -0.021743 -0.0350537 -0.3973868 11-mar 0.0399864 1.7030482 -0.0293496 0.0499974 -0.2146873 12.504 0.2064304 -0.3993745 -0.3993745 -0.1597915 11-apr 0.083443 0.0938878 0.1036075 0.0704509 -0.1036076 12.504 0.3634722 -0.1772152 -0.1772152 -0.0857384 11-may -0.0391462 0.2106317 0.0764924 0.0231965 0.20286563 0.65405417 0.1642332 -0.0387166 0.43573125 0.11857709 11-jun 0.0892183 -0.2132435 0.1180458 0.0441133 -0.1180458 12.504 0.1921098 -0.2060917 -0.2060917 -0.0953639 11-jul 0.048 0.0685714 0.015 0.060256 -0.015 12.504 0.1794444 0 0 -0.0266667 11-aug -0.054776 0.0803437 0.0562031 0.0636581 -0.0562031 5.89024339 0.1189516 -0.0824062 -0.0176569 -0.0110548 11-sep 0.0251869 0.0449938 -0.0069952 0.0297789 0.07066313 -2.1616238 0.1750371 0.17132626 -0.0295705 -0.0606266 11-oct 0.0346654 0.0648946 0.0057824 0.041184 0.03644788 -2.7771736 0.173728 0.10289576 -0.0390645 0.00598645 11-nov -0.0661435 0.02014207 -0.0089705 -0.0055649 0.17669471 -0.6975691 0.1732314 0.38338942 -0.1585246 0.06936826 11-des 0.0850071 0.122433 0.2018997 0.084542 -0.0215054 12.504 0.1759096 -0.1572521 0.03058399 0.00630807 av 0.031507667 0.19289958 0.04848826 0.0556231 -0.0124808 5.22317435 0.21408147 -0.0385909 -0.0483934 -0.0567043 12-jan 0.2140053 0.0567909 0.0503447 0.1665229 0.03749515 0.12843668 0.0433774 -0.2607278 0.11509929 0.06162174 12-feb 0.1797231 0.0248341 -0.0289077 0.12755269 -0.0159961 -0.0621718 -0.2406724 -0.0843919 0.14039697 -0.0226351 12-mar 0.0299186 -0.0196215 -0.694654 0.0587076 0.00602921 0.05192481 -1.3923081 0.01644361 0.11292461 -0.0296308 12-apr -0.138216 -0.0527597 0.0460619 0.03241607 -0.0391001 -0.2058718 -0.0942146 0.11965791 0.09594784 -0.0162113 12-may -0.2868731 -0.0413293 -0.3562341 -0.0397857 -0.1294463 -7.7352141 -0.0455896 -0.1286198 0.06997549 0.08368143 12-jun -0.1310681 0.1173915 -0.0190469 0.05556741 -0.0755476 -3.0618879 -0.0184478 0.24807242 0.10447599 -0.0195043 12-jul 0.3695433 0.0149977 -0.301506 -0.2623513 0.08254118 0.14214227 -0.0677666 0.00478387 0.07954961 -0.0025756 12-aug -0.2773163 0.0080264 -0.0156984 0.08295455 0.01083164 -0.2160476 -0.022854 -0.0986825 0.13375019 -0.0076312 12-sep 0.0721005 0.0429799 0.032393 0.07855986 -0.0381992 -0.0970512 -0.0290587 2.98940527 0.12976911 0.02334964 12-oct 0.000324 0.0067544 0.030538 0.08178796 -0.0082222 -0.0127037 0.0003126 -0.0295537 0.12047564 0.01084246 12-nov 0.164205 0.0088694 -0.0050958 0.08165946 -0.0116669 -0.1450155 -0.002586 -0.032213 0.12136005 0.00266758 12-des -0.9510497 0.0360752 0.0445207 0.07035328 0.00348397 0.02178197 0.0102698 -0.1098956 0.11548597 0.02136776 av -0.06289195 0.01691742 -0.1014404 0.0444954 -0.0148164 -0.9326398 -0.1549615 0.21952323 0.11160089 0.00877853 13-jan -0.107374377 0.55302232 -0.2665158 -0.0963937 -0.0016707 -0.5818707 -0.0252778 -0.1364179 -0.0473282 -0.060877 13-feb -0.142351384 -0.350771 0.32196243 -0.0665479 0.11293923 -0.2298921 0.04298294 -0.0652409 0.17685217 -0.1269591 13-mar -0.004794242 -0.0519474 -2.5955207 0.06059397 -0.0055822 0.0856127 -0.0480989 -0.0270264 -0.0169319 -0.0182844 13-apr -0.089809454 0.07839526 -0.0308878 0.02038473 0.046346 0.00481785 0.05527173 -0.0186713 0.02341569 -0.0516648 13-may -0.213161454 -0.0644273 0.41526112 0.06240937 0.03170964 0.06693833 0.0416568 0.16867598 1.47355977 -0.1418744 13-jun -0.13378207 0.12614522 -0.0110821 -0.0014048 -0.0593594 -0.0520734 0.0352342 0.00114514 0.19696854 -0.123114 13-jul -0.069010449 -0.012777 -0.0266415 -0.1100271 -0.0963729 -0.2512998 0.0310024 0.00662105 -0.1796209 -0.0521683 13-aug -0.050427411 -0.131636 0.07853584 -0.0496707 0.49376015 -0.1386197 -0.0899894 -0.0511614 -0.0461475 -0.1055081 13-sep 0.04337047 -0.0530479 -0.0197839 0.00253677 0.06500629 -0.0337595 0.06122629 0.09346323 0.04701446 -0.0896537 13-oct -0.124727488 -0.0158662 -0.0765439 -0.0718897 0.1167257 -0.1033084 0.04113881 -0.0161637 0.01620495 -0.1191076 13-nov -0.105751577 0.00524476 -0.0490137 0.049372 0.06633648 -0.0798947 0.07652701 -0.0014057 0.03491102 -0.1040043 13-des -0.12989569 -0.0864966 -0.6301707 -0.2161388 4.04070717 -0.032478 -0.0669812 -0.1486012 -0.8864083 -0.1947108 av -0.093976261 -0.0003468 -0.2408667 -0.0347313 0.40087879 -0.1121523 0.01289108 -0.0162319 0.06604082 -0.0989939 14-jan -0.479290004 0.00736419 0.09041556 0.04900126 -0.0495969 0.22550625 -0.1633279 -0.0714731 0.17330311 -0.0847596 14-feb 0.048723164 -0.2536931 0.00435766 -0.3998064 0.09094025 0.06720222 -0.2106663 -0.0127482 0.11394162 0.1027944 14-mar -0.173528009 0.00057546 0.03375189 0.04824735 0.79087807 0.0136101 -0.1067398 0.16021952 0.40323346 -0.7308296 14-apr -0.339909213 0.01142303 0.00771679 -0.0861211 -0.2435845 0.04313597 -0.3332501 0.15550008 0.37768762 -0.2674042 14-may -2.45242342 0.07459176 -0.1581895 0.07625351 -0.0298439 0.24121664 0.09110013 -0.06252 0.16594422 0.18078511 14-jun -0.100220872 -0.1774325 -0.0050295 -0.0365782 0.43232528 -0.0881588 -0.1570461 0.32576898 -0.183846 -0.1628988 14-jul 3.30786797 0.08498832 -0.3135847 -0.2743259 6.79625009 -0.4525544 0.10330508 1.30000135 -0.0397059 0.39867003 14-aug -0.552349742 -0.3518822 0.45255436 -0.306992 -0.0816708 -0.0261743 1.68149462 -0.7094701 0.40533753 2.84441355 14-sep 0.043449118 -0.0230772 -0.0014469 0.05323179 0.06629076 -0.521017 0.26364935 0.08503209 0.08083868 0.14334636 14-oct 0.867939762 -0.1980931 0.62057928 0.21749854 -3.1671192 -0.6401642 0.51991643 -0.8292798 0.18194306 -4.5023731 14-nov 2.514119065 -0.1344609 0.48479187 0.96708127 0.08829937 -0.0448579 -0.6362633 -0.6362633 0.4668095 -0.705431 14-des 0.359500706 -0.0914968 0.25462197 0.07320568 -0.4223914 -0.032478 0.00378854 0.09981605 0.27147749 -0.2060439 av 0.253656544 -0.0875994 0.1225449 0.03172465 0.3558981 -0.1012278 0.08799672 -0.0162847 0.2014137 -0.2491442 15-jan -0.0184488 0.02607545 -0.0793087 -0.2767446 0.22288525 0.0993083 0.065572 -0.0470595 0.08621073 0.01200716 15-feb -0.0075223 0.04291324 -0.019044 -0.0114512 -0.0814488 -0.0109656 -0.053697 0.01213717 -0.0513978 0.02307985 15-mar 0.00273397 0.04203267 -0.014647 0.03799935 0.1031746 -0.026908 -0.059754 0.00673742 0.08180401 0.02395148 15-apr 0.010445701 0.05300367 0.00791602 -0.019755 -0.0473022 0.10036307 -0.074172 -0.0101763 0.00744735 0.03422825 15-may -0.0348931 0.01392743 -0.2889953 -0.3673796 -0.0567293 -0.6436634 -0.085956 0.20094885 -1.1098234 -0.0617312 15-jun 0.062652757 0.11900294 -0.0701611 0.01753269 -0.0444485 -0.0103946 -0.0549993 0.05851821 -0.0171498 0.00556407 15-jul -0.04104136 0.03064167 0.40615751 -0.0152319 -0.0837229 -0.0448135 -0.012359 0.12057163 -0.0132172 -0.0579001 15-aug -0.2267902 0.27106177 -0.0603151 -0.122021 0.54682255 0.43362128 -0.082229 -0.3800391 -0.0884766 0.0189578 15-sep -0.0029925 0.04277038 -0.003167 -0.0701012 -0.024508 0.00626481 -0.063477 -0.0153081 0.00473903 0.01477976 15-oct -0.0125243 0.03635797 -0.0175366 -0.0243086 -0.1020067 -0.0733304 -0.0551873 -0.4029709 -0.0090216 -0.0412417 15-nov -0.0095026 0.03534851 -0.022471 0.08540042 -0.6016053 0.07252317 -0.200385 0.05844906 -0.0772158 0.01565382 15-des -0.0539115 0.02447084 -0.0289044 -0.0573044 0.56735677 -0.4764589 -0.1655265 -3.9272076 -0.0304279 0.01665916 av -0.027649519 0.06146721 -0.0158731 -0.0686138 0.03320562 -0.0478711 -0.0701808 -0.3604499 -0.1013774 0.00033402 16-jan 0 0 0 0 -0.1026737 -0.0064616 -0.0743789 -0.8056654 -0.1700739 -0.0093607 16-feb -0.0043675 0.00291609 -0.1664387 -0.0144196 0.01000696 0.01998996 -0.1400067 0.00492256 -0.0800104 -0.0900046 16-mar 0.020014805 0.03000916 -0.1100054 0.04000645 0.00398441 0.14596418 -0.1347834 -0.0440725 -0.0721401 -0.0831891 16-apr 0.026051827 0.03065026 -0.0843553 0.03717564 -0.0406422 0.06940281 -3.347611 0.128885 -0.2085533 -4.241026 16-may -0.018138 0.0241085 -0.1348422 -0.0543415 -0.0806526 0.00790412 -0.1254664 -0.1763052 -0.0985237 -0.106065 16-jun 0.029614672 0.01714886 -0.1017588 0.03205318 0.04573011 -1.2250096 -0.1751722 0.81570392 -0.1565205 -0.1072046 16-jul -0.0512104 -0.0190289 -0.1468501 -0.0410703 0.04635488 0.11402671 -0.1452678 -0.1348383 -0.026242 -0.0497816 16-aug -0.0834107 0.09357013 -0.1150903 0.11436915 0.01648247 0.03508801 -0.1467414 0 -0.0817915 -0.0979598 16-sep -0.1949774 0.03707243 -0.11858 0.05155678 -0.5956001 -0.6613002 -0.0967428 -0.1231598 -0.0865826 -0.0966549 16-oct 0.239269017 -0.0788405 -0.0340121 -0.1114 -0.4224522 -0.0211872 -0.169678 0 -0.1319367 -0.1361659 16-nov -1.5034752 -0.0169903 -0.1340865 0.17272701 0.54545354 0.15518876 -0.1635928 1.07590707 -0.1672424 -0.1494948 16-des -2.3895409 0.20848451 -0.126951 -0.0758817 -0.0057452 -0.7212367 -0.1929454 -0.0868346 -0.136542 -0.1194681 av -0.327514148 0.02742502 -0.1060809 0.01256459 -0.0483128 -0.1739692 -0.4093656 0.05454523 -0.1180133 -0.4405313 17-jan -0.0101453 -0.0220919 0.00645837 0.57742733 -0.0615524 0.00067931 0.09597384 2.27970931 1.24942588 0.04009084 17-feb -0.034221797 0.02407307 0.02382564 0.00682024 -0.054502 0.04902035 -0.0008982 0.03411211 0.02538808 0.01535861 17-mar -0.019627204 -0.0232253 -0.0528441 -0.0318585 -0.0735652 0.00437102 0.04398076 -0.3958457 -0.0156787 -0.3958457 17-apr -0.018975034 -0.0114491 -0.8867869 -0.0082794 -0.0231322 0.02313224 0.14433879 -0.1243388 -0.0471694 0.00385062 17-may -0.014759092 -0.0137087 -0.0965991 -0.1156775 -0.0679009 1.28845572 -0.0531409 -0.5823689 -0.0160634 0.08583972 17-jun -0.021400802 -0.0066483 0.12220775 -0.0225612 -0.0335033 0.02264129 0.0688127 -0.1295475 5.54e-05 0.16236525 17-jul -0.120516629 0.04290435 0.03417596 -0.0042634 -0.0173856 0.07212952 -0.0374309 0.19023725 0.07946603 0.02786135 17-aug 0.032864871 0.02082414 -7.45e+13 -0.0017466 -0.0379085 0.05916996 0.03313838 0.13921311 0.01752307 -0.0353992 17-sep 0.03443642 0.04051041 0.04121737 0.02838319 -0.055054 0.0433152 -0.0153384 0.23180375 0.02461333 0.02786623 17-oct -0.131543761 0.19014661 -0.0507719 0.01644466 -0.0345589 0.04244304 0.03857987 0.17616007 0.03668387 -0.0062838 17-nov -0.014328517 -0.0668157 0.07778023 0.03151771 -0.0587215 0.00765268 0.12737175 0.47224183 0.18932388 0.00193764 17-des 0.023197954 0.01030721 0.01285111 0.00645243 -0.0501505 0.04782695 0.00651107 0 0.02172385 -0.0657339 av -0.024584908 0.01540224 -6.207e+12 0.04022158 -0.0473279 0.13840311 0.03765824 0.19094805 0.13044099 -0.0115077 18-jan 25.002 -0.8030864 -2.3720996 -8.8788889 2.52 4.40596409 0.01694446 -1.2551678 -0.508169 0.75491285 18-feb -2.591818985 -0.3292793 -0.2400306 5.01 1.23134021 -6.8975517 0.00517159 2.52 -0.1077194 -0.1946956 18-mar 0.5879375 0.72777778 250.0002 5.01 -0.7267532 -5.9157686 -0.0368313 2.68556291 16.4088889 -1.1176137 18-apr 25.002 0.7448718 -0.5811487 5.01 2.52 3.97878212 0.01557394 2.68534392 1.13111111 0.37295829 18-may 2.024058824 0.2472973 0.3148036 2.83608696 2.52 2.81590141 -0.58678 2.52 -0.8583784 0.64378004 18-jun -2.350297593 -1.9195652 0.2649194 0.63682216 -2.48 2.76016778 0.012846 -0.1729982 0.21372694 5.56455556 18-jul -0.560372188 -0.7274194 1.07059729 -1.0244828 -1.3065306 2.00108008 0.04028155 -1.9442857 1.2444898 5.56455556 18-aug 0.5879375 -14.383333 0.22777044 1.95189602 1.32952381 4.05305405 0.00380677 2.52 0.72359281 -1.278794 18-sep 25.002 -1.05 0.26658253 5.01 33.77 8.68444601 -0.0178106 0.42268456 -1.4587798 -3.1363928 18-oct 0.714435233 0.20786164 0.25992988 5.01 1.32952381 1.5135271 -0.3997368 2.52 2.52 0.65145955 18-nov -1.066821689 3.39444444 -0.0654422 -0.0747458 0.89662338 -2.2607072 0.11450552 2.52 0.62222672 5.56455556 18-des -0.547310169 -1.05 0.6153493 0.11869565 -1.3065306 -0.4926921 0.01981984 0.63320755 2.26798387 -1.4411892 av 5.983645703 -1.2450359 20.8134526 1.71794861 3.35809973 1.22051692 -0.0676841 1.30452894 1.84991446 0.99567434 19-jan 0.0130382 0.013319 0.0550362 -0.0053163 0.05786627 0.03821775 1.0179767 0.0212602 0.05016037 0.02030316 19-feb -0.01200807 0.00245005 0.0484603 -0.0439339 0.05992181 -0.008095 0.2631275 0.01745375 0.04581766 -0.0117285 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 223 www.americanjournal.org 19-mar 0.008217466 -0.0284635 0.0522157 0.0303234 0.07169199 -0.3930123 -0.8580372 0.00423678 0.01625444 0.04230901 19-apr -0.0473753 0.01645358 0.05142948 0.2245584 0.07746573 -0.2325974 -0.5803116 -0.0424006 0.07321845 0.08340159 19-may 0.04285415 0.03253651 0.09096626 0.004746 0.09654251 0.04068252 -0.3755448 0.09354487 0.33091989 0.03554091 19-jun 0.12611567 0.00690603 0.01712368 0.00070152 0.03324887 0.04518448 -12.504 -0.0180452 -0.000988 -0.4323356 19-jul -0.04961792 -0.1194205 0.04544511 0.04950792 0.0631296 0.05315554 1.135281 0.1295447 0.09409726 0.27290727 19-aug -0.0323915 -0.0257752 0.05799897 -0.0135965 0.07509963 -0.2551806 1.5831525 0.03387573 0.05296 0.07629515 19-sep 0.03103437 -0.0297213 0.06267859 0.0762951 0.07947074 -0.0068336 -1.4459674 0.05314757 0.06349601 0.07629515 19-oct -0.0140223 0.01286336 0.06397402 -0.0272946 0.06234563 0.00176611 -3.1477125 0.00135266 0.04498534 -0.0272947 19-nov 0.30277673 0.05007767 0.073882 0.07015535 0.05906266 -0.0055118 3.6597931 0.05007767 -0.0859503 0.00159029 19-des 0.32926065 0.05272607 -0.2294553 0.07545213 0.0793503 -0.0243225 4.5538602 0.05272607 0.05636303 0.07545213 av 0.058156846 -0.0013374 0.03247958 0.03679988 0.06793298 -0.0622122 -0.5581985 0.03306451 0.06177785 0.01772799 20-jan -0.2369755 0.1266667 -0.0239708 -0.2133425 -0.0411431 -0.091009 0.5049195 0.06913487 0.05509633 -0.1250415 20-feb 1.1475777 0.0714286 -0.0742376 -0.191084 -0.0542426 0.08576976 -0.077659 -0.2418556 0.16701827 0.38817185 20-mar -0.2368938 0.06 0.00011365 -0.189128 -0.0201071 -0.0776593 -0.0463444 -0.1991483 -0.0075851 -0.0419699 20-apr -0.0304778 0.16 -0.0431192 -0.1955061 -0.0424584 0.065359 -0.1472628 -0.0980021 -0.0034491 -0.0161582 20-may -0.0604983 0.1481481 -0.1037296 -0.2062312 -0.1144323 0.05795638 -0.0200053 0.16886458 -0.0189233 -0.134697 20-jun -0.1407516 0.1290323 -0.0446749 -0.2119678 -0.0134336 -0.0537393 -0.700087 0.04066275 0.03475911 -0.1234438 20-jul 0.0070986 0.2857143 0 -0.207619 -0.0316118 -0.0090722 0.13793651 -0.0276244 0.03761364 -0.1131962 20-aug -0.1179368 0.06 -0.0851964 -0.2238045 -0.0769476 -0.1162228 -0.0417563 0.16494812 -0.0130583 -0.1488489 20-sep 0.025002 0.2377778 -0.0415383 -0.2096 -0.0415973 0.01194497 3.57594175 0.02105008 0.02041542 -0.1179205 20-oct -0.1049303 0.0540541 0.214933 -0.2009043 -0.0163651 -0.0191369 -0.0054043 -0.0755043 -0.0153125 -0.0994555 20-nov 0.0154757 0.034359 -0.0420841 -0.2095504 -0.0429987 -0.000834 -0.0072672 0.03775728 0.02392044 -0.1195964 20-des -0.8134222 0.035 0.3731343 -0.2215774 -0.071838 -0.1454416 -0.1231889 -0.7907815 0.09166794 -0.1402606 av -0.045561025 0.11684841 0.01080251 -0.2066929 -0.0472646 -0.0243404 0.25415188 -0.0775415 0.03101356 -0.0660347 total av. 0.5792854 -0.09194 -6.3e+11 0.165799 0.408084 0.516932 -0.06784 0.130955 0.219895 0.010549 std. 3.8772618 1.345111 6.58e+12 1.310931 3.114578 2.98784 1.372018 0.839812 1.512447 1.116521 cv. 0.1494058 -0.06835 -0.09511 0.126474 0.131024 0.173012 -0.04944 0.155934 0.14539 0.009448 american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 27 www.americanjournal.org analysis of the correlation between economics and music shadiyev ikromjon 1music teacher, fergana presidential school, fergana, uzbekistan askarov farhod economics and business teachers, fergana presidential school, fergana, uzbekistan polycap addicka economics and business teachers, fergana presidential school, fergana, uzbekistan akmoldinov imomali, anvarov sardor, boboyev abdurahmon, botirov hayrullo, mamurjonov abdurahmon, musajonova malika, siddiqov kamoliddin, sobirjonova gulnoraxon, qo’ysinov zohidjon, umarova mushtariy 10th-grade students with a major in a/as level international economics, fergana presidential school, fergana, uzbekistan a b s t r a c t k e y w o r d s this article presents the findings of a student-led investigation into the correlation between music and economics. the study was conducted in a combined session involving music and economics classes. the students aimed to identify the relationship between music and economics by reviewing existing research and findings from other scientists and academics. the teachers provided relevant information and shared conclusions from empirical researches and articles. the students explored ways to implement the valuable findings in their hometowns in uzbekistan. the article highlights the students' efforts to music, economics, festival, social event. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 28 www.americanjournal.org bridge the gap between music and economics and their potential impact on local communities. introduction music can be considered both a good and a service, depending on the context. let's break down the different aspects you mentioned. ➢ music can be seen as a merit good because it has the potential to enhance cultural expression, education, and emotional well-being. it can contribute to society's overall quality of life. however, not all music necessarily qualifies as a merit good, as some forms of music may have more limited social benefits and primarily serve individual entertainment purposes. ➢ the categorization of music as a private, public, or quasi-public good depends on the characteristics of its delivery method. ➢ music can be considered a private good when it is delivered through means that can be exclusively consumed by individuals or restricted groups. examples of private goods in the music industry include physical albums, digital downloads, or access to exclusive concert experiences. these goods are typically subject to exclusion (only those who pay can access them) and rivalrous consumption (one person's consumption reduces availability for others). ➢ music can exhibit public good characteristics when it is delivered in a manner that is nonexcludable and non-rivalrous. for instance, music that is freely available for everyone to enjoy, such as street performances or music played in public parks, can be considered a public good. public goods are often provided by the government or public organizations to benefit society as a whole. ➢ quasi-public goods, also known as club goods, have characteristics of both private and public goods. they are excludable but non-rivalrous. some examples in the context of music include subscription-based streaming services like spotify or apple music. while these services require payment and can exclude non-subscribers, the consumption of music within the service is nonrivalrous because one person's use does not diminish the availability to others. ➢ the price elasticity of demand for music can vary depending on factors such as the availability of substitutes, consumer preferences, and income levels. for example, highly popular and in-demand music may exhibit lower price elasticity of demand, meaning that changes in price have a relatively smaller impact on demand. conversely, less popular or niche music may have a higher price elasticity of demand, making demand more sensitive to price changes. ➢ the price elasticity of supply for music can be influenced by factors such as production costs, distribution channels, and the availability of talent. in general, the supply of recorded music has become more elastic with the advent of digital technologies, as it is easier for artists and labels to produce and distribute music. however, live performances and unique experiences can still have more limited supply, resulting in less elastic supply curves. ➢ it's worth noting that the categorization of music and the measurement of price elasticity can be nuanced and context-dependent. different genres, formats, and delivery methods can exhibit varying characteristics in terms of goods, services, and market dynamics. as we are aware, the impact of music and festivals on the economy of any country is significant. festivals make a tremendous contribution to the budgets of economies worldwide by generating additional revenue and helping maintain the stability of a country's currency, among other benefits. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 29 www.americanjournal.org major sporting tournaments and various political and economic union organizations often have their own anthems, which carry meaningful and unifying power through the rhythmic melodies and lyrics. additionally, it is widely known that certain brands in the business world utilize music as a catchy tool to attract customers. consequently, even if we are not familiar with the specific authors or lyrics of these songs, our brains unconsciously associate them with the particular organization, event, or brand, bringing them into our visual perception. "i pay no attention whatever to anybody's praise or blame. i simply follow my own feelings." wolfgang amadeus mozart methodologies: − the analysis and synthesis methods were used to evaluate the relationship between music and economics. − scientific abstraction, induction, and deduction were employed to compare research outcomes and analyze similarities between different studies. − an abstract-logical approach was utilized to generalize the findings and formulate conclusions. − mathematical and statistical processing involved various techniques, including ranking, scaling, registration, systematization, differentiation, grouping, and graphical representation, for data analysis. literature review and meta-analysis: scientists have conducted numerous empirical research studies that demonstrate the positive effects of music on the human brain [1] and even on animals [2]. here are a few notable findings: − listening to music can have a positive impact on mood by reducing stress, anxiety, and depression [3]. it can evoke emotions, stimulate pleasure centers in the brain, and promote feelings of happiness and relaxation. − music has been shown to enhance cognitive functions such as memory, attention, and problemsolving skills [4]. it can improve focus, enhance learning, and aid in information retention. − research suggests that music can have physiological benefits, such as reducing heart rate, blood pressure, [5] and pain perception [6]. it has also been linked to improved immune system [7] functioning and the release of feel-good hormones like endorphins[8]. − exposing children to music at an early age has been associated with enhanced brain development [9], improved language skills [10], and increased iq scores [11]. learning to play a musical instrument has shown positive effects on cognitive abilities and academic performance [12]. − music therapy has been effective in helping individuals with various conditions, such as stroke[13], alzheimer's disease [14], and autism spectrum disorder [15]. it can aid in motor skills recovery [16], language development [17], and emotional well-being [18]. − studies have shown that music can have calming effects on animals, reducing stress and anxiety. it has been observed to positively influence animal behavior, including increased milk production[19] in cows and reduced aggressive behavior in dogs [20]. it's important to note that while these findings demonstrate the positive effects of music, individual responses to music can vary. additionally, further research is continually being conducted to explore the specific mechanisms and applications of music in various contexts. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 30 www.americanjournal.org numerous studies have shown that good health is positively correlated with higher productivity and economic success [21]. good physical and mental health allows individuals to perform better in their work, make clear decisions, and maintain consistent energy levels [22]. research and analysis: the study on seattle's music industry highlights its economic impact and cultural significance. generating over $1.2 billion in revenue and supporting 10,000+ jobs, the industry is vital to the city's economy. it comprises musicians, venues, studios, labels, educators, and more. [23]challenges include the tax structure, isolation, traffic, and digital technology's effects on consumption and distribution. however, leveraging advantages like a music-loving population, grunge scene legacy, local talent, technology, and community support present opportunities. to foster growth, the city should promote visibility, enhance music education, provide business training, reform taxes, reduce congestion, and create more performance spaces. the industry's significance extends beyond economics, contributing to the city's quality of life and cultural identity. further research and policy focus on these areas will ensure future growth and success. this summary encapsulates the main findings, challenges, opportunities, and future directions of the research, offering a valuable resource on seattle's music industry's economic impact. arno van der hoeven and erik hitters' study [24] on the value of culture and its instrumentalization in urban policy, music policy, and the city offers a comprehensive understanding of culture's role in shaping urban environments. their rigorous and interdisciplinary methodology serves as a model for future studies. uzbekistan can adopt a similar approach to better understand local cultural practices and preferences, fostering inclusivity and ownership through participatory methods. recognizing and celebrating uzbekistan's cultural diversity can drive urban development, utilizing cultural assets for sustainable frameworks that preserve identity and drive progress. the study's exploration of music policy provides valuable insights for uzbekistan's rich musical traditions, suggesting the integration of local musicians, support for live music events, and cultural vibrancy in urban spaces. by embracing these concepts, uzbekistan can create a dynamic and cohesive urban environment that nurtures cultural vibrancy, promotes economic growth, and preserves its unique heritage. tourism plays a vital role in many countries, with various types of tourism attracting and encouraging travelers. one such type is musical tourism, exemplified by the umbria jazz music festival [25]. the study on this festival draws important conclusions with policy implications. firstly, the event's local impact relies on specialized local services for event production, requiring support for endogenous businesses through regional policies. secondly, continued financial support for cultural events is crucial, despite budget constraints, as the economic impact justifies public contributions. effective resource allocation based on economic impact is necessary, especially in times of limited financial resources. rigorous assessment methodologies are essential for informed decision-making by policymakers. the research highlights the economic significance of cultural events and provides policy insights applicable to organizing international events and festivals in countries like uzbekistan, including considerations of costs, investments, and social, economic, and ecological impacts. we can invite some guests from abroad to our “boysin bahori”, “sharq taronalari” and “shoshmaqom san’ati” festivals, since they can be held in the same way with the jazz festival analysed before. the internet has revolutionized the music industry, impacting its law and economics [26]. the shift from physical formats to digital platforms has provided global access for artists but also raised american journal of business management, economics and banking volume 20 january, 2024 p a g e | 31 www.americanjournal.org concerns about copyright infringement. streaming services have transformed the economic landscape, prompting debates over fair compensation. independent artists now have more control over production and promotion, challenging traditional gatekeepers. the internet has created a global marketplace, breaking down barriers and facilitating cultural exchange. however, navigating international copyright laws has become complex. in conclusion, the internet has brought both opportunities and challenges [27], requiring collaboration to balance innovation, intellectual property protection, and fair treatment of artists. uzbekistan can benefit from technological advancements but must also address potential negative effects through government tools and policies. music has the power to transform the classroom, motivating and empowering students. a study involving eight nations examined the relationship between music study and academic motivation, revealing significant findings [28]. students studying music demonstrated higher levels of interest, competence beliefs, and perceived importance and usefulness across all grades. music education extended beyond musical skills, positively impacting math and english proficiency. however, socioeconomic status and gender played roles in this relationship. students from lower socioeconomic backgrounds showed the greatest interest in learning music, emphasizing the importance of supporting their musical education. this study calls for collective efforts to use music as a motivator for learning and social justice, ensuring every student has access to the inspiration, discipline, and joy that music brings. the study aimed to explore the potential positive outcomes of instrumental music learning programs for economically and socially disadvantaged primary school students [29]. two schools with students facing generational poverty, immigrant or refugee status, and receiving education maintenance allowance were involved. ninety-two students in years 3-6 completed assessments of reasoning, verbal and mathematical ability, and well-being. over 12 months, school 1 students in the program showed improved reasoning, language, math skills, and well-being. providing access to music education has been shown to benefit academic achievement regardless of socioeconomic status. however, there is a trend to prioritize literacy and numeracy over music programs. the el sistema approach, which provides music education to disadvantaged children, taps into their desire to learn an instrument and offers tuition to those who may not have access otherwise. the study examined the non-musical outcomes of el sistema-inspired programs and found positive effects on academic ability and emotional well-being [29]. the findings highlight the potential benefits of music programs for low ses children, [29] emphasizing the importance of continued support and expansion. the article concludes that the recording studio sector in the music industry is currently facing a crisis due to technological changes, particularly the impact of software [30]. this crisis is characterized by declining recording budgets, reduced demand for studio space, and an increase in closures. the accessibility of affordable digital recording equipment has led to a dispersal of musical creativity, resulting in significant repercussions for recording studios. the paper suggests that this crisis has expedited the vertical disintegration of production, as record companies transfer responsibilities to management firms. studios are responding by creating "project rooms" to externalize revenue risk, but they experience high turnover due to ongoing market challenges. survival strategies, such as transitioning into management or production-publishing roles, encounter obstacles like the need for substantial capital. the article highlights the concentration of capital among record companies due to industry risks. with recording studios continuing to close, it impacts the geographic landscape of the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 32 www.americanjournal.org music economy. the conclusion underscores the urgent need for studios to adapt to technological and economic shifts in order to ensure their long-term sustainability. the article examined the impact of music-making on nursing students, known for experiencing high levels of stress and burnout [31]. the research revealed that music intervention had lasting positive effects on emotional exhaustion, mood disturbance, vigor, and activity. over a six-week period, the rmm protocol resulted in a 20.5% decrease in emotional exhaustion and a 28.1% decrease in total mood disturbance. in contrast, the control group experienced increased stress levels, while the music group demonstrated an upward trend in overall well-being. additionally, an independent economic analysis projected potential annual cost savings of $16,800 for nursing programs and over $1.5 billion for healthcare. the study emphasized a return on investment of $564 for every dollar spent. the positive impact of music-making persisted, with a 6.1% increase in vigor and activity [31]. the article acknowledged the transformative experience and enduring eustress effect of music-making for nursing students, while also noting the study's limitations and suggesting future research directions. ultimately, the article concluded that music-making has the potential to significantly improve education, well-being, and joy in healthcare studies, serving as a cost-efficient intervention to reduce burnout and mood disturbances among nursing students. this article has examined the limitations of existing algorithms used to assess music cities, such as algorithm a (economics), algorithm b (four t's creative index), and algorithm c (heritage), in capturing the comprehensive value of music activity in urban areas [32]. the case study of melbourne, known as the music capital of australia, has demonstrated the conflicting claims and findings generated by algorithms a and b. to address these issues, the article proposes algorithm d (music cities definition) as a benchmark that offers a more holistic assessment of music activity in any urban context. algorithm d encompasses all music genres, both live and recorded, and considers various factors such as financial impact, employment, audience participation, live music venues, technology, tolerance, talent, territorial assets, music heritage, music-making, music education, community involvement, local music events, and international music events. the article argues that algorithm d provides a much-needed definition of what constitutes a music city by incorporating the social significance of space and cultural practices. it concludes by suggesting that algorithm d can serve as a framework for future research on music cities and as a tool for policy makers, industry stakeholders, and music communities to promote the development and sustainability of music activity in urban areas. the article discusses the historical and contemporary connections between music and senses of place and identity, emphasizing their strong links [33]. it provides examples from various musical genres, highlighting the influence of music on people's attachment to place. however, the article notes that this relationship has been largely overlooked in human geography, with existing contributions criticized for being descriptive and conceptually limited. recently, there has been increased interest among human geographers in exploring the intersections of music, place, and identity, aligning with broader shifts in cultural geography. the article also emphasizes the continued significance of political economy in understanding the geographies of music, as the music industry remains a site of commodity production in contemporary capitalism. furthermore, in the context of uzbekistan, the article highlights the deep-rooted connections between music and the country's rich cultural heritage and diverse ethnic makeup. uzbek music serves as a reflection of cultural identity and fosters a strong sense of belonging and attachment to geographical and cultural roots. it can also contribute to regional american journal of business management, economics and banking volume 20 january, 2024 p a g e | 33 www.americanjournal.org and urban development strategies by stimulating economic growth and promoting overall well-being. in conclusion, music plays a crucial role in shaping identities, fostering a sense of place, and contributing to the development of communities in both urban and regional areas. conclusion music and economics/business are correlated in several ways: − the music industry itself is a significant economic sector, contributing to employment, revenue generation, and economic growth. it encompasses various segments such as music production, distribution, live performances, streaming services, merchandise, and licensing. the economic impact of the music industry is measured through indicators like employment levels, revenue generated, and contribution to gdp. − music can be a driving force for tourism and cultural industries. cities and regions that have a vibrant music scene and host music festivals or events attract tourists, leading to increased economic activity in terms of accommodation, transportation, dining, and retail. music-related tourism can generate revenue and employment opportunities, benefiting local economies. − -businesses often use music as a strategic tool for branding and marketing. catchy jingles or soundtracks in advertisements can enhance brand recognition and create emotional connections with consumers. music can influence consumer behavior, evoke specific emotions, and shape brand perception, ultimately impacting sales and revenue for businesses. − the licensing of music for various purposes, such as commercials, films, tv shows, and video games, involves economic transactions. businesses and individuals pay royalties to artists, songwriters, and music publishers for the use of their music. these licensing fees contribute to the financial sustainability of the music industry and provide income streams for artists and rights holders. − background music in retail stores and shopping centers is strategically chosen to create a certain ambiance and influence consumer behavior. studies have shown that carefully selected music can affect shoppers' mood, browsing time, and purchasing decisions, ultimately impacting sales and profitability for businesses. − businesses often sponsor music events, festivals, and concerts as part of their marketing and corporate social responsibility strategies. these sponsorships provide financial support to the music industry while offering businesses opportunities for brand exposure, customer engagement, and networking. − overall, music and economics/business are intertwined, with the music industry itself being a significant economic sector. additionally, businesses strategically leverage music for branding, marketing, and enhancing consumer experiences, while music-related tourism and event sponsorships contribute to local economies. references: 1. neville, h., andersson, a., bagdade, o., bell, t., currin, j., fanning, j., ... & yamada, y. 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(2016). exploring the academic and psychosocial impact of el sistema-inspired music programs within two low socio-economic schools. music education research, 18(2), 156-175. 30. leyshon, a. (2009). the software slump?: digital music, the democratisation of technology, and the decline of the recording studio sector within the musical economy. environment and planning a, 41(6), 1309-1331. 31. bittman, b. b., snyder, c., bruhn, k. t., liebfreid, f., stevens, c. k., westengard, j., & umbach, p. o. (2004). recreational music-making: an integrative group intervention for reducing burnout and improving mood states in first year associate degree nursing students: insights and economic impact. international journal of nursing education scholarship, 1(1). 32. baker, a. j. (2017). algorithms to assess music cities: case study—melbourne as a music capital. sage open, 7(1), 2158244017691801. 33. hudson, r. (2006). regions and place: music, identity and place. progress in human geography, 30(5), 626-634. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 57 | p a g e economic policies in iraq and ways of economic reform ruaa naseer kadhim college of administration and business, wasit university, wasit, iraq corresponding author: rkadam@uowasit.edu.iq a b s t r a c t k e y w o r d s economic reform is a goal that most countries seek to achieve, especially countries with fragile economies, by following ideologies and economic policies aimed at bringing the economic reality towards a stable economy capable of confronting economic crises and imbalances at the global and local level, and because the iraqi economy suffers from its weak ability to confront the global shocks of oil prices due to its almost complete reliance on oil rent revenues and the underdevelopment of its productive sectors in all its branches, which was reflected in the imbalance in its internal balances and external and widening gaps in its economic variables, so it is necessary to intensify efforts and follow corrective economic mechanisms and policies on the overall macro levels of the iraqi economy balanced and advancing economic growth by following stabilization and economic adjustment policies to balance supply and demand on the public and private economic levels introduction countries with inactive and fragile economies suffer from a decline in the role of productive sectors in stimulating and reviving the economic reality, and this is reflected in the reality of economic indicators with a high rate of indebtedness, imbalance in financial balances, a decline in the level of real output, an increase in price levels, and a worsening of the problem of unemployment, thus creating a distorted picture of the economic reality of those countries. therefore, reform is considered the economic situation is an inevitable necessity that must be achieved in order to advance the country’s economic reality, given the economic shocks and imbalances that the iraqi economy has gone through. therefore, it is necessary to follow mechanisms to reform the structure of its real productive sectors. therefore, the study started from the hypothesis that (iraq can advance its economic reality and reform it if it directs the rentier revenues that it has been relied upon almost entirely to revive the reality of the structure of the real productive sectors and to extract them from the distortions from which they suffer. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 58 www.americanjournal.org the study problem : iraq's continued reliance on rentier revenues makes it a fragile economy unable to confront economic shocks and crises, in addition to the confusion it suffers in managing rentier funds and directing them towards achieving economic progress capable of driving economic growth in the real sectors of the economy. study hypothesis: iraq can improve and reform its economic reality if the rentier revenues that have been relied upon are directed almost entirely towards reviving the reality of the structure of the real productive sectors and extricating them from the distortions from which they suffer. the first section: economic reform as a concept, goals and mechanisms first: the concept of economic reform the need for economic reform becomes urgent when economic distortions worsen and the loss of economic balance is reflected in the economic reality, which accumulates over time periods, causing internal and external shocks and their effects to be reflected at the overall level of the economy, which requires following mechanisms to overcome imbalances and correct the mechanisms of supply and demand by restructuring and redistributing resources () economic reform is a reflection of the regular corrections and mechanisms used by countries, through which they aim to achieve true diversity in the economic structure and increase the effectiveness of the economy and its ability to achieve a balance between economic resources and the needs of society and confront the economic imbalances resulting from the loss of balance between needs and economic resources () while the nations gave the united nations expressed its opinion on economic reform that it is the approved mechanisms and methods used to remobilize economic resources and redistribute them in a way that suits the real needs of the population at the present time and ensuring the fulfillment of future needs by using stabilization mechanisms and policies to address the short-term imbalances that the country suffers from, ending with adjustment policies to address deeper imbalances in the long term. for the country () thus, economic reform expresses economic mechanisms followed by countries with long-term goals aimed at restructuring economic variables that advance economic growth, improve the standard of living, and move towards achieving the economic well-being of society. second: objectives of economic reform the policies adopted by those in charge of the country's administration aim to follow mechanisms to achieve a number of goals that are in the interest of the country's economic reform, improving the reality of its economic variables, and confronting the internal and external imbalances to which the economy is exposed, namely () 1addressing the imbalances facing the public budget, making its expenditures consistent with the revenues obtained, working to streamline the state’s role in its public spending, and providing the private sector with the opportunity to allow it to manage economic activities. 2controlling price increases, eliminating price distortions, reducing inflation rates, and working to reach the inflation target set by central policy. 3eliminate the aggravation of the problem of high unemployment rates and its economic, political and social effects, and work to reach the targeted unemployment rates within the economic framework set by economic policies. 4achieving stability in the exchange rate of the local currency against other currencies, preserving the value of the local currency and increasing its ability to confront local and external economic crises. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 59 www.americanjournal.org 5making the internal economic climate attractive for local and foreign investments by creating a favorable environment that attracts investments. 6working to increase the economy’s ability to face the burden of external debts, increase the economy’s ability to repay them, and achieve no need for external debt due to the impact of external debt on future human rights and the ability to reduce high poverty rates. 7addressing imbalances in the macroeconomic balance internally and externally and reaching high growth rates while achieving economic stability. economic reform is achieved without the need to resort to international institutions, or it may be carried out with assistance provided by the international monetary fund and the world bank when countries reach major imbalances and the level of their economic resources declines significantly, which prompts them to resort to the world bank or the international monetary fund and submit to their conditions or requesting loans from other countries or financial institutions, whose conditions imposed on the borrowing countries do not differ from the conditions of the international monetary fund and the world bank. the reform mechanisms followed by the international monetary fund and the international bank, as well as bretton woods, are working to implement market mechanisms in the economies that resort to them and reduce the size of the role that they play. the public sector in economic activities and working to make the private sector responsible for promoting economic activities and working to achieve economic openness to the global economy by relying on mechanisms adopted by the neoclassical school in achieving general economic stability in order to advance the development wheel at the macro level of the economy in connection with the mechanisms of the market economy () third: economic reform mechanisms: the economy aims to bridge monetary imbalances and control price imbalances as initial measures as initial steps for economic reform in the short term and to move forward towards achieving economic reforms in the medium and long term, which are recipes for treating economic imbalances provided by the monetary fund, the world bank, and private financial institutions. therefore, the economic system works to follow the steps to achieve the set goals: 1making the economy based on market mechanisms, diminishing the role of the state in managing economic activities, following price liberalization mechanisms, and reducing the size of the budget’s contribution to production operations, in addition to freeing up the movement of foreign trade, reducing or eliminating customs duties, and making room for the private sector to be responsible for managing economic activities, and this is considered a step. economic liberalization is one of the most important economic stabilization policies as initial solutions for the short term, as the policies aim to achieve economic stability, relying on short-term mechanisms and procedures to contribute to resolving sudden economic imbalances, such as the balance being in deficit, whether the trade balance or the general budget, or the decline in the value of the local currency against foreign currencies. therefore, it depends economic policy follows short-term economic stabilization mechanisms to reach long-term goals. 2the second step is the step in which policies work to follow mechanisms with frameworks and goals that work for the long term and pay attention to reforming the laws related to economic policies and addressing the obstacles that stand in the way of implementing mechanisms for economic stabilization and liberalization, as this stage is the stage of restructuring the economy in the medium and long term by reducing the extent of the state’s role in contributing to economic processes and its american journal of business management, economics and banking volume 19 december, 2023 p a g e | 60 www.americanjournal.org intervention in allocating resources. this step expresses the stage of economic restructuring by following certain economic policies, such as changing the volume of trade exchanges, or external or internal shocks, such as changing political regimes. this step is concerned with the supply side, targeting these goals, which are: () atransferring productive sectors from the public sector to the private sector (privatization) bbmaking the environment attractive for foreign investments as it is a dynamic engine for economic activities and the wheel of economic growth. ct stimulating economic growth to reach the stage of stability that economic reform policies aim to achieve and achieve high levels of well-being for society research methodlogy the second topic: economic reform policies and their compatibility with the iraqi economy: first: realistic data of the variables of the iraqi economy: the iraqi economy is considered a fragile economy in the face of economic imbalances and external shocks due to its reliance on rentier revenues and making them the main source of public spending, and the decline in its real productive structure to reflect the decline in growth in its real output of the productive sectors, in addition to the decline in the level of real investments in the productive sectors and a very significant decline in the rates of productive investments in the private sector as well. on the dominance of activities operating in government sectors with a non-productive service role, which has led to an exacerbation of unemployment rates in iraq (), as the iraqi economy reflects an imbalance in its economic structure due to the oil sector’s control over other commodity sectors, whether revenues or labor force, so that it is considered the main financier of the programs. development and trends in government investment spending. oil revenues are the main resource for the general budget compared to the productive sectors. the other fact is that it reflects an imbalance in iraq’s economic structure, as the oil sector is the main component of the gross domestic product, and the decline in the rates of economic diversification of the productive sectors. reliance on rentier revenues leads to a weak interconnection between the productive sectors. due to its weak productivity and contribution to the gross domestic product (gdp), the economic problems that the iraqi economy suffers from are the result of long-term accumulations resulting from the poor use of resources and the trends in their allocation in a way that is consistent with the advancement of the development process of the real productive sectors, in addition to the wrong management of the distribution of those resources and their trends that contributed to achieving major imbalances. in the balance of aggregate demand and aggregate supply, in addition to the imbalances it suffers from in its monetary and financial stability and the high rates of unemployment and poverty (), rentier revenues are considered a reason for exacerbating these disturbances that the iraqi economy is suffering from, as by tracking the indicators of the iraqi economy, the reflection of the dependence on its gross product, which multiplies the indicators the basic principle that reflects the extent of the country’s economic strength and the strength of its real production structure, and through it identifies the weaknesses that must be worked on to fix them by reaching the real and diversified targeted output that the economic policy aims to reach without it being associated with economic disturbances, as the output is a reflection of the country’s economic image and while tracking the real gdp, the table reflects the disturbances and fluctuations in the gdp and its growth rates and their connection to oil price fluctuations or internal and external political turmoil and their reflection on oil revenues and the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 61 www.americanjournal.org percentages of the real productive sectors’ contribution to the gdp and its dependence on rentier revenues and considering them the primary resource for the gdp and then the following: the nonproductive service sector, with a decline in the contribution of the agricultural and industrial productive sectors and the weakness of the flexibility of their production structure in meeting societal needs and reliance on imports. table 1. : economic reform policies and their compatibility with the iraqi economy contributions of local product to the gdp average per capita gd at current prices product growth rate gdp year service % agricultural activities % transformative industries% crude oil % 7 6 5 4 3 2 1 17.891 6.938 1.761 57.872 1961509.2 _ 53235.3587 2004 2.959 6.886 1.320 602.826 2629674.9 38.1 73533.5986 2005 3.3181 5.8260 1.541 55.291 3274233.0 29.9 95587.9548 2006 33.816 4.929 1.631 52.9520 3754986.0 16.6 111455.8134 2007 2.610 3.847 1.683 55.510 5135262.7 40.8 157026.0616 2008 461.585 5.229 2.611 42.863 4125861.5 -16.8 130643.2004 2009 0.416 5.162 2.269 4.445 4988141.1 24 162064.5655 2010 0.0297 4.563 0.282 53.033 6518752.6 34 217327.1074 2011 4.198 4.124 2.721 49.733 7431918.8 16.9 254225.4907 2012 4.9349 4.768 2.297 45.898 7795455.5 7.6 273587.5292 2013 5.512 4.929 1.877 43.874 7648994.9 -2.6 266332.6551 2014 9.804 4.191 2.175 33.487 5528730.4 -26.9 194680.9718 2015 9.9723 39.771 2.2528 34.226 54444537.4 1.15 196924.1417 2016 7.855 2.9767 2.174 39.999 5968459.4 12.5 221665.7095 2017 7.182 2.8158 0.203 44.687 7053761.2 21.3 268918.874 2018 8.028 3.746 2.124 41.163 7101964.3 3.33 277884.8694 2019 36.257 6.919 1.807 78.616 8460140.1 0.1530 184693 .3689 mean columns (1), (3), (4), (5), (6), (7): ministry of planning, development cooperation agency, central bureau of statistics and information technology, statistical group for various years. column (2) ratios and growth rates are the work of the researcher based on data from the ministry of planning, the central bank of statistics, technology and information, the statistical group for various years. because of iraq’s reliance on the oil sector to fuel its public spending, it has expanded the circle of weakness that the productive sectors suffer from and exacerbated the gaps in its balance sheets, and because of the depletive consumption of resources that characterizes iraq, the directing of oil revenues towards operational spending in the form of wages and salaries, and its decline in supplementing the financial reserve to confront the economic crises that it increases the fragility of the economic power due to its economic reality () and because oil revenues are characterized by their rapid vulnerability to crises and economic shocks, both internal and external, it was reflected in the reality of the revenues that the iraqi economy collects due to its almost complete dependence on oil revenues, which reflected negatively on iraq’s financial strength and its decline in payment of its financial obligations, and this is reflected in table (2), which reflects a strong correlation between the gross domestic product and american journal of business management, economics and banking volume 19 december, 2023 p a g e | 62 www.americanjournal.org fluctuations in oil prices for the period (2003-2020), as the table reflects the increase in the gross domestic product for the period (2003-2008), recording a compound growth rate of up to (53.8%). linked to the changes occurring in oil prices until the output reached (167,037) in 2020 and with a negative compound growth rate (%-28) affected by the two shocks to which the economy was exposed, which is the crisis of the outbreak of the corona epidemic and its impact on production processes, and then the decline in oil prices to reflect negatively on the gross domestic product. the total iraqi economy. table (2) gdp/million dollars and its correlation with oil prices for the period (2003-2020) year gdp acc. growing rate crude oil price 2003 15282 %53.8 28.1 2004 36638 36.05 2005 49887 50.64 2006 65159 61.08 2007 88809 69.08 2008 131623 94.45 2009 111661 %-15 61.06 2010 138517 %19.2 77.45 2011 185750 103 2012 218032 107 2013 234638 103 2014 224186 %0.7 94.9 2015 163597 44.7 2016 165482 36 2017 186274 49.3 2018 225982 65.6 2019 232065 60.38 2020 167037 %-28 40.69 in addition to the increasing rates of unemployment in iraq and the decline in investment opportunities due to iraq’s dependence on the rentier resource and the decline in productive investment projects capable of absorbing working energies, iraq is considered a country with high scientific and technical qualifications, but it lacks the presence of appropriate opportunities to absorb those energies and qualifications and the lack of matching job opportunities for them, which reflects the image of structural unemployment in the iraqi economy (), in addition to the lack of compatibility between population growth and the operational plans proposed by the ministry of planning, as well as with the individual’s production level and the level of wages, which contributed to their understanding of the problem of unemployment in general and disguised unemployment in particular, as the phenomenon of unemployment and lack of job opportunities in iraq is considered a problem. it has a complex framework. although it possesses diverse resources and enjoys an abundance of those resources, it has not worked to advance the reality of the iraqi economy and build a diversified production base based on these abundant and diverse resources and based on knowledge foundations that support the advancement of the investment reserve, the withdrawal of unemployed workers, and the provision of appropriate job opportunities that contribute to increasing the level of productivity in the real sectors in the future. therefore, the problem of unemployed workers is considered a american journal of business management, economics and banking volume 19 december, 2023 p a g e | 63 www.americanjournal.org problem that poses risks to the iraqi reality and to the various political, social, and economic trends in iraq table (3) unemployment rates in iraq and population numbers unemployment male per female per total (m) male female tear 6 5 4 3 2 1 26.8 0.502 0.497 27139 13629 13510 2004 17.97 0.502 0.497 27963 14055 13908 2005 17.5 0.503 0.496 28810 14493 14317 2006 11.7 0.503 0.496 29682 14943 14739 2007 15.34 0.503 0.496 31895 16058 15837 2008 0.502 0.497 31664 15910 15754 2009 0.509 0.490 32490 16561 15929 2010 8.3 0.509 0.490 33338 16985 16353 2011 11.9 0.509 0.490 34208 17420 16788 2012 0.509 0.490 35096 17864 17232 2013 10.6 0.508 0.491 36005 18319 17686 2014 0.505 0.494 36934 18660 18274 2015 10.8 0.505 0.494 36169123 18273505 17895618 2016 13.8 0.504 0.495 37139519 18673758 18375761 2017 0.505 0.494 38124182 19261253 18862929 2018 0.505 0.494 39,127,889 19,768,324 19,359,565 2019 abstention from work is one of the obstacles to achieving real economic reform in iraq and its negative effects on the social, economic and political reality, as well as a waste of young working energies. iraq’s policy of attracting the unemployed force in the military sector is considered an ineffective policy as it has exacerbated the problem of disguised unemployment in the military sector. in addition to its increasing percentage in the public sector, this is exacerbating the problem of finding solutions to reduce unemployment rates and its negative effects on the economic reality. these effects are reflected in the high rates of poverty in iraq, making it more difficult to achieve economic reform. iraq records that a quarter of iraq’s children suffer from acute malnutrition and high mortality rates of children under the age of five have reached 40%. the exacerbation of this problem in iraq is due to several factors, including negative economic planning to absorb the workforce and provide opportunities for it, in addition to the decline in security stability that iraq is suffering from, which has made it an environment repulsive to foreign investments and weak demand for the local labor force, in addition to the decline in the role of the private sector’s contribution to real productive investments (), all of the above has increased the imbalance in the iraqi balance of payments to acquire the character of a deficit, even though it was recording surpluses in its trade balance, so those surpluses are due to errors in the national accounts due to their inability to distinguish between income and its count. this is due to the inflation of the added value of the extractive industries, and the description of the iraqi balance of payments as a deficit is due to the imbalance in the iraqi trade structure, the dependence of the iraqi economy on rentier revenues from the export of oil, the dominance of oil exports on the export side, and the import side bearing the import of all consumer products necessary for society. ( ) as the iraqi markets were linked to the global markets by preparing the iraqi markets for their consumer and necessary needs and iraq’s dependence on rentier oil american journal of business management, economics and banking volume 19 december, 2023 p a g e | 64 www.americanjournal.org revenues to obtain foreign currencies. table (3) reflects a surplus in the years of the study except in the years (2004, 2009, 2015, 2016) in which the balance of payments recorded a deficit. these surpluses recorded by iraq are due to several factors that contributed to achieving the surplus recorded by the balance of payments. the most important of these factors are the surpluses achieved by the trade balance as a result of the high volume of oil exports, in addition to the secondary factors represented by aid and grants to contribute to achieving surpluses that have a positive impact on the balance of payments, despite the negative results in the balance of payments recorded in 2004 is due to a very large increase in imports to the iraqi economy, and this is reflected in table (3), resulting from a deficit in the trade balance of (3492.3) million dollars, in addition to the deficit recorded by the services account of (822.3) million dollars (). the deficit recorded by the balance of payments in 2009 was due to a decline in the value of assets and reserves and the current account deficit resulting from a reflection of the services account deficit. as for the decline in 2015, it was due to a decline in the level of exports due to a decline in oil prices until they reached $44.7 per barrel after the price of a barrel was 94.9 in 2014. negative impact on the balance of payments, in addition to the deficits recorded in the transaction register resulting from the increase in transfers abroad, as it recorded a deficit of approximately (1.5) million dollars, while the current account recorded a decrease to reach (18445) table (4) balance of payments of the iraqi economy for the period (2004-2019): billion dollars growth rate of imports imports the growth rate of exports exports balance of payments year 5 4 3 2 1 21302.3 17,810.00 -2404.6 2004 10.47 23532 33.06 23,697.40 4374.5 2005 -11.22 20892 28.83 30,529.40 16748 2006 2.99 21516.2 29.68 39,590.00 11757.9 2007 64.97 35496 60.97 63,726.10 18800 2008 8.29 38437 -37.57 39,782.20 -5817 2009 14.25 43915.3 30.12 51,763.60 6286.3 2010 8.85 47803 53.93 79,680.50 10393.7 2011 17.64 56233.7 18.19 94,171.60 7986.8 2012 4.56 58795.9 0.04 94,208.60 24427.9 2013 -9.56 53177 -4.71 89,767.90 22590.3 2014 -26.58 39045.1 -6.45 83,980.90 -14066 2015 22.96 48,009.90 -38.88 51,327.70 -8344.1 2016 0.21 37866 57.55 57559 27012.2 2017 0.20 45736 0.500 86360 5695.8 2018 0.07 49417.6 0.40 81585.2 8724.6 2019 this confirms the link between the imbalances in the balance of payments and the imbalances occurring in oil prices, as well as the external economic and political turmoil as a result of the correlation of oil prices with international oil prices and political fluctuations and their impact on the iraqi balance of payments. given the disciplined financial policies in both their revenue and expenditure aspects and the necessity of controlling the level and direction of revenues to achieve american journal of business management, economics and banking volume 19 december, 2023 p a g e | 65 www.americanjournal.org economic reform of the country, and when tracking iraq’s financial policy and the extent of its ability not to borrow and achieve economic reform, this is what table (5) reflects. table (5) budget for the period (2009-2019) and deficit level year revenue expenses shortage 2009 55243.525 55589.062 -345.537 2010 70178.223 70134.201 44.022 2011 103989.088 78757.665 25231.423 2012 119817.223 105139.574 14677.649 2013 113840.075 119127.555 -5287.48 2014 105386.623 835566.226 -730179.603 2015 66470.252 70397.515 -3927.263 2016 54409.27 67067.437 -12658.167 2017 77335.955 75490.115 1845.84 2018 106569.834 80873.189 25696.645 2019 107566.993 111723.522 -4156.529 it becomes clear from the table that the level of deficit in financial budgets is high due to iraq’s revenues being linked to rentier revenues and their lack of diversification. the economic decline and the real production structure of the real productive sectors in iraq, which reflects the necessity of reducing the level of government spending to work to reduce the level of external and internal debt and the benefits resulting from it to bridge the deficit and thus making it an obstacle to achieving economic reform, as table (6) reflects the iraqi economy exceeding the debt ratios specified within the master yacht agreement is within the debt rule, which stipulates that the loan percentage of the output must not exceed (3%), as table (6) reflects the decline in the ability of financial policy to achieve financial control and iraq’s lack of planning directed to spending trends in a way that is compatible with the development process, as the revenues obtained from borrowing were directed to backfilling. the fiscal deficit gaps in the budget are not a mechanism to improve the economic situation and drive growth, as large sums of money were directed to pay off iraq’s accumulated debts from the wars that iraq fought, which worked to impose compensation on the iraqi economy, as iraq’s external debt was estimated according to the paris club estimate at $37.15 billion. to the paris club countries, its debts outside the paris club were estimated at (67.4) billion dollars, and iraq’s commercial debts recorded (20) billion dollars, and iraq recorded debts to international organizations amounting to (0.5) billion dollars. table (6) reflects iraq’s exceeding the percentage specified by the master yacht agreement. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 66 www.americanjournal.org table (6) ratio of gdp at current prices to the planned deficit and debt of the iraqi economy (billion dinars) total public deb external debt internal debt deficit to output ratio deficit decided in the budget by the government gross domestic product at current prices year 6 5 4 3 2 1 191946.839 186021.778 5925.061 0.02975466 1584 53235.3587 2004 154352.578 148097 6255.578 -0.095501378 -7022.56 73533.5986 2005 101067.565 95422.175 5645.39 -0.058279906 -5570.857 95587.9548 2006 98951.705 93758 5193.705 -0.086697479 -9662.938 111455.8134 2007 81403.058 76947.489 4455.569 -0.057868687 -9086.892 157026.0616 2008 84423.647 75989.598 8434.049 -0.143576611 -18757.308 130643.2004 2009 76813.642 67632.836 9180.806 -0.141438413 -22922.155 162064.5655 2010 80722.191 73275.332 7446.859 -0.072370061 -15727.976 217327.1074 2011 81760.519 75213 6547.519 -0.058200427 -14796.032 254225.4907 2012 76573.549 72318 4255.549 -0.069915263 -19127.944 273587.5292 2013 77648.019 68128 9520.019 _ not yet 266332.6551 2014 100733.205 68590.4 32142.805 -0.124279835 194680.9718 2015 118767.051 71404.8 47362.251 -0.109990267 -24194.919 196924.1417 2016 125815.396 78136.6 47678.796 -0.056456707 -21659.739 221665.7095 2017 121173.318 79350.4 41822.918 -0.102402366 -12514.516 268918.874 2018 117400 78490 38910 0.02975466 -27537.929 277884.8694 2019 second: economic reform and the extent to which it can be achieved in the iraqi economy: achieving economic reform in iraq requires removing many of the obstacles that hinder the work of mechanisms to achieve economic reform for all economic, social and political trends that stand in the way of the approved reform plans and policies to advance iraq’s economic reality. this is what was reflected in the previous statements, as the state was unable through its intervention in the economic process. by following expansionary policies and increasing the level of the financial deficit, it is impossible to achieve economic reform to advance the economic reality and its productive structures. therefore, the state has moved away from the corrective path that it must achieve, in addition to the impact on the iraqi economy of the worsening number of the unemployed and the increase in poverty rates, which included a large percentage of society. the iraqi economy is characterized by a decline in its real production structure, which constitutes an economic and social obstacle to achieving economic reform in iraq. these variables and their effects constitute obstacles to achieving economic reform in iraq, which necessitates the necessity of iraq working to follow mechanisms to advance the infrastructure of the structure of its real productive sectors that work to achieve productive diversity. the economy in iraq, and because iraq possesses a natural resource that qualifies it to achieve these mechanisms, a strong foundation must be made for the diversified production structure of the various sectors of the iraqi economy, which requires developing strong mechanisms and strategies to activate the role of investment sectors and developing strategic plans to build an attractive environment for private and foreign investments, facilitating the granting of credits and loans. to spend for investment, this necessitates the need to establish laws and legislation that give the investor a feeling of security and protection by guaranteeing their rights, which increases the diversity of real economic production and is able to increase business by providing investment loans that support the achievement of the goals of economic reform and then create job opportunities that increase the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 67 www.americanjournal.org opportunity to reduce the rate of the unemployed and increase the level of productivity to work to reduce the growing demand gap in the supply of local production that is satisfied by imports and thus reduce the volume of consumer imports, in addition to the necessity of making room for the private sector and providing an encouraging environment for investors in the real productive sectors, whether agricultural, industrial, or technological, and supportive towards achieving the economic diversification that reform aims to achieve. economic to achieve it. conclusions: 1the iraqi economy suffers from a weak infrastructure due to its almost complete reliance on rentier revenues, and the weakness of its real production structure has made it a fragile economy in the face of economic imbalances, whether internal or external. 2the iraqi economy suffers from a disconnect between the work of the state’s economic policies and the activities of the productive economic sectors as a result of the rentier nature of the economy and its dependence on oil revenues, coupled with its lack of mechanisms and legislation that work to direct revenues towards advancing the developmental reality of the economy. 3the exposure of the iraqi market to the global market due to its reliance on satisfying essential and consumer needs through imports, in exchange for reliance on oil exports. 4iraq’s lack of legal mechanisms, rules and legislation that protect investors, private investment, production and the productive process, which has exacerbated the increasing levels of imports in the face of iraq’s unilateral oil exports. recommendations: 1the necessity of creating sovereign funds to address the differences in oil prices between estimated and actual prices and transfer them towards the production process in the real productive sectors to advance the real productive sectors. 2removing obstacles to the work of the private sector and developing mechanisms to build an attractive environment for internal and external private investments. 3reducing the level of public operating and consumption spending, raising investment spending rates, supporting the investment process, and the necessity of raising the importance of taxes in public revenues. 4establishing legal legislation and frameworks supporting investment that supports real productive operations and increasing the level of loans and credit facilities to increase the level of productive investment to bridge the economic gaps in the economic balance. references 1. semenova, t., & al-dirawi, a. (2022). economic development of the iraqi gas sector in conjunction with the oil industry. energies, 15(7), 2306. 2. semenova, t., & al-dirawi, a. (2022). economic development of the iraqi gas sector in conjunction with the oil industry. energies, 15(7), 2306. 3. drebee, h. a., & abdul-razak, n. a. (2020, august). the impact of corruption on agriculture sector in iraq: econometrics approach. in iop conference series: earth and environmental science (vol. 553, no. 1, p. 012019). iop publishing. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 68 www.americanjournal.org 4. tagliapietra, s. (2019). the impact of the global energy transition on mena oil and gas producers. energy strategy reviews, 26, 100397. 5. early, b. r., & cilizoglu, m. (2020). economic sanctions in flux: enduring challenges, new policies, and defining the future research agenda. international studies perspectives, 21(4), 438477. 6. dixit, p., & rzgar, r. (2019). diversification of economy–an insight into economic development with special reference to kurdistan’s oil economy and agriculture economy. russian journal of agricultural and socio-economic sciences, 85(1), 395-404. 7. matallah, s. (2020). economic diversification in mena oil exporters: understanding the role of governance. resources policy, 66, 101602. 8. davis, s. j., liu, d., & sheng, x. s. (2019, august). economic policy uncertainty in china since 1949: the view from mainland newspapers. in fourth annual imf-atlanta fed research workshop on china’s economy atlanta (vol. 19, pp. 1-37). 9. abdulkhaliq, s. s., & mohammadali, z. m. (2019). the impact of job satisfaction on employees' performance: a case study of al hayat company-pepsi employees in erbil, kurdistan regioniraq. management and economics review, 4(2), 163-176. 10. kutlay, m., & öniş, z. (2021). turkish foreign policy in a post-western order: strategic autonomy or new forms of dependence?. international affairs, 97(4), 1085-1104. 11. jiang, y., tian, g., wu, y., & mo, b. (2022). impacts of geopolitical risks and economic policy uncertainty on chinese tourism‐listed company stock. international journal of finance & economics, 27(1), 320-333. american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 56 www.americanjournal.org advanced foreign experiences in cost accounting and cost calculation djumanov saitmurod alibekovich phd., dotsent, tashkent state university of economics "financial accounting and reporting" department email: djumanovsaidmurod@gmail.com a b s t r a c t k e y w o r d s in the article, advanced foreign experiences in the field of cost accounting and cost calculation and their integration into the network of business entities operating in uzbekistan, analysis and accounting of production costs, product (works, services) costs the main types of modern methods are considered. here, the concepts and traditional approaches of product costing popular in domestic and foreign countries and common methods in foreign practice are described. cost, cost of production modern methods of costing, traditional methods of costing, profit and loss. introduction the positivity of the financial result of any enterprise directly depends on the chosen methodology for calculating the cost, and its selection is based on the specified tasks and the specific characteristics of the object of calculation. president of the republic of uzbekistan sh.m. mirziyoev's work entitled "critical analysis, strict discipline and personal responsibility should be the daily rule of every leader's activity" "the first is the effectiveness of the implementation of targeted programs that show the effectiveness of the reforms. among these, the following economic and financial indicators of the development of industry and other sectors can be mentioned: the state of production facilities, cost and cost reduction, localization and level of profitability, unconditional increase in product competitiveness. in general, costing is presented as a costing process of an object, within which we can consider finished products, semifinished products, works, services, business process operations, distribution channels and individual business processes. modern common cost accounting methods in developed western countries today include: cost accounting for functions of the abc method; just-in-time system target cost, kaizen costs. currently, reliable information on the formation of product costs is considered as one of the methods of obtaining competitive advantages. if the cost information is not reliable, it is difficult to control it. american journal of business management, economics and banking volume 31 december 2024 p a g e | 57 www.americanjournal.org with increasing automation processes and increased global competition, managers began to realize the need for reliable information on the formation of costs. in connection with the above, simplified methods of allocation of indirect costs cease to justify themselves. all this contributed to the emergence of a functional system of cost accounting, which helps to solve the problem of increasing the ability to manage them. the abc method was proposed by english economists cooper and kaplan at the end of the 80s of the 20th century. this method is not an alternative to orderor process-based costing methods. it represents a new approach to the development of cost allocation indicators that can be used to determine product costs in accordance with already known methods. the advantages of this method are especially evident in organizations that produce a large assortment of products in different batches, where indirect costs make up a large part of the cost of production (highly mechanized and automated production). advantages of the abc method: the method allows for a more realistic assessment of the cost and profitability of manufactured products, work and services; allows the use of the received information on the distribution of costs for the purpose of setting prices and increasing the competitiveness of products; in order to reduce costs and increase the efficiency of the company's activities, including the evaluation of costs from the point of view of customers; provides information for strategic planning purposes. disadvantages of the method include: significant efforts to collect information and train employees both in the introduction of the method and in its use; this method cannot be used in enterprises with a long and complex production process; there is a risk of getting too detailed information about expenses, therefore the information overload of the enterprise; this method requires a more bureaucratic production organization system than the existing ones. in the mid-1970s, a just-in-time delivery system was developed and implemented in japan. this system is based on the principle "nothing is produced until it is needed". let's take a closer look at the "justin-time" system to better understand how it works. in contrast to the traditional (centralized) production model, which is based on the planned delivery of finished products to consumers (the more, the better), the jit system is a clearly oriented (i.e., decentralized) system based on real demand. works accordingly. in this, the main attention is paid to the close coordination of the departments, in the production of the product, only the resources needed at a certain stage of the production process are used. it is believed that in enterprises that have not implemented the "just-in-time" system, as well as the material resources planning system, a lot of time (about 90%) is spent not on production, but on processes related to them. it is, for example, storage, quality control, transportation, internal movement, etc. these costs increase indirect costs, but not production costs. therefore, minimizing the time to prepare the product for production, which is characteristic of the just-in-time system, provides important advantages in reducing costs: there are insignificant reserves or none at all; materials are delivered to production departments as needed, sometimes within hours; american journal of business management, economics and banking volume 31 december 2024 p a g e | 58 www.americanjournal.org the production process is carried out in several workshops without stocks work in progress; finished products are not produced except for orders received from customers. one of the main goals of a just-in-time system is to reduce or eliminate inventory holding costs because they do not add value to the product. the just-in-time production system is not only a method of inventory management, but also represents a management philosophy of eliminating non-value-added business activities, a philosophy aimed at improving product quality throughout the entire production cycle. the results of using the "just-in-time" system directly depend on the relationship between the supplier of material assets and the customer. to use the just-in-time system, you need to be absolutely sure that the supplier will deliver the goods to the specified place, when the customer needs them, otherwise he will have to keep a reserve stock, which will slow down the entire production process. the customer also makes high demands on the quality of the purchased materials used in the production of the finished product. if the company uses the "just-in-time" system with minimal inventory, it needs to make sure that the materials it receives from the supplier and immediately sends to production will not cause any problems for it, it needs quality guarantees. therefore, the responsibility of the supplier to provide the customer with these guarantees is of particular importance, the condition of the delivered materials without defects, which allows the customer to reduce the costs of checking the quantity and quality of the material assets received. this directly affects the level of cooperation between the supplier and the customer. due to the customer's need to reduce inventories and at the same time receive them on time and regularly, suppliers are forced to deliver materials in smaller volumes, but more often. the better the "just-in-time" system is established, the more attention is paid to the problem of the supply of materials and their quality. when implementing a just-in-time manufacturing system, equipment must be located in such a way as to avoid any delays during the production cycle, while minimizing setup time and production time per unit of product. 'attention is drawn. however, the production cost accountant plays an important role in the implementation of the material demand planning system, which requires accurate and timely information about materials, production process and finished products. the main elements of the material demand planning system are as follows: the main production schedule, which clearly defines the quantity and production period of each product; the list of materials, which lists the materials, parts, components necessary for the production of each final product; a report on the inventory used in the production of each part, part or component, information about each of them is entered into separate computer files. it shows the available amount of material, the date of receipt and the amount of material to be received; lead times for all materials to be purchased and, for example, standard assembly times for all parts produced in the factory. next, the cost accountant must calculate the costs associated with the organization of each production process in production, and determine the costs of downtime and inventory. having considered the main issues of the operation of the "just-in-time" system, we can highlight a number of its advantages, especially from a financial point of view: american journal of business management, economics and banking volume 31 december 2024 p a g e | 59 www.americanjournal.org reduction of inventory volume by 75%, which leads to the minimization of investments in raw materials; reduce costs for internal movement of inventory; rational use of space, buildings for storage of materials and finished products also leads to a decrease in investments; improving relations between suppliers, transport organizations, customers; the need for less equipment and labor costs; reduce the number of unexpected, unplanned cases; reducing costs related to the risk of wear, loss, damage of goods; reduction of all costs in general, including additional costs (loading and unloading operations, maintenance of inspectors controlling product quality, storage of raw materials and materials, etc.); reduction of paperwork (after the introduction of the "just in time" system, there is no need to issue orders, demands, work orders); reduce equipment replacement costs by 20%. it is natural that every event has advantages and disadvantages. a just-in-time system is no exception in this case, but while it has many positives, it also has a number of negatives. experts and scientists identify the following disadvantages inherent in the exact time system: problems that arise when orders for the supply of goods and materials are not fulfilled on time; problems with incomplete delivery, completeness, lack of any part; delivery of unsolicited components; the risk of having a single supplier; lack of highly qualified personnel. thus, it was concluded that all of the above systems are aimed at managing enterprise costs, which allows efficient use of available resources in the enterprise, which in turn increases the ability of the enterprise to operate without losses. the choice of the system largely depends on the goals of the organization from the implementation of its practice. it is important to correctly calculate not only the costs of costing systems, but also the benefits of their implementation. references 1. law of the republic of uzbekistan "on accounting", new edition. april 13, 2016. 2. the structure of production and sale costs of products (works and services) included in the cost of products (works and services), as well as the procedure for forming financial results, approved by the decision of the cabinet of ministers of the republic of uzbekistan no. 54 of february 5, 1999 regulation on ". 3. mirziyoev sh.m. "critical analysis, strict discipline and personal responsibility should be the daily rule of every leader's activity." t.: "uzbekistan" 2017. 103 pages. 4. соколов я.в. управленческий учет: учебное пособие / под ред. я.в.соколова.— м.: магистр, 2012 .— 431 с. — (бакалавриат) .— isbn 978-5-9776-0077-4. 5. pardaev a.kh., pardaev b.kh. management account. study guide.-t.: publishing house named after gafur ghulam, 2015. 252 p. 6. www.mf.uz 7. www.lex.uz 8. www. ziuonet.o‘z http://www.mf.uz/ http://www.lex.uz/ http://www./ american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 50 www.americanjournal.org business ecosystem of commercial banks and its organization processes shoymardonov orziqul jura ugli independent researcher of tashkent institute of finance. uzbekistan, tashkent a b s t r a c t k e y w o r d s this article talks about ways to improve the efficiency of banking services based on the introduction of a business ecosystem in the commercial banks of our country, the essence of the banking business ecosystem, the history of development, and the prospects for improving the advantages of the business ecosystem in commercial banks. in particular, the article presents the existing problems in increasing the efficiency of the business ecosystem in commercial banks based on the introduction of innovations, as well as the author's recommended approaches and suggestions for their elimination. commercial banking, innovation, digital business, ecosystem, efficiency, innovative services, new types of services, banking business ecosystems. introduction banking business ecosystems are networks of interrelated organizations, services, and technologies that work together to provide financial services. they bring together banks, financial institutions, technology providers and other market participants to create innovative and effective solutions for clients. another important aspect of banking business ecosystems is the development of partnerships with technology providers and other companies. thanks to this, banks can use advanced technologies and innovations to improve their products and services. the main objective of the banking business ecosystem is to provide customers with a wide range of financial services and products in an integrated format. thanks to cooperation with various partners, banks can offer their customers additional services such as online payments, investment advice or insurance. understanding the context and nature of the banking business ecosystem is critical to managing the complexities of the financial industry, making informed decisions, and ensuring the stability and growth of the banking sector within the broader economy. it is commercial banks that are the main entities in the banking business ecosystem. they serve as the backbone of the financial industry, offering a variety of services to both individuals and businesses. these services range from traditional functions such as deposits and loans to more sophisticated offerings in investments and payment processing. this multifaceted role makes commercial banks play a key role in facilitating economic activity and ensuring financial stability in the economy. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 51 www.americanjournal.org analysis of literature the banking business ecosystem is a set of interrelated and interacting elements, elements, products and services that make up the business environment for banking activities. the banking business ecosystem includes not only the bank itself and its customers, but also various partners and service providers. these can be fintech companies, payment systems, insurance companies, financial data aggregators and other market participants. today, many scientists and researchers have conducted scientific research on the business ecosystem of commercial banks. in particular, the dutch economist marta szymanowska studied various aspects of banking ecosystems, including the impact of financial innovations and the role of banks in the economy [1]. economist a. ivanov expressed the opinion that the concept of ecosystem in the banking business, the integration of several services related to the common value for the client into one user interface creates a number of conveniences [2]. according to the mckinsey consulting organization's report, "return on equity (roe) in the world's banks has remained stable, that is, in the last 10 years, this indicator has been around 8-10 percent on average. it is estimated that this indicator will be in the range of 5.2-9.3 percent by 2025" [3]. this situation is not limited to financial services of the banking system, but encourages the development of the ecosystem mechanism. at the same time, online e-commerce platforms allow banks to keep in close contact with their customers, as well as determine their financial situation, psychological portrait, and wishes» [4]. mj. jacobides, k. kennamo, a. in their research, gaver distinguishes two main approaches to defining the concept of ecosystem: in the first approach, the ecosystem is considered as a group of organizations that are interrelated in relation to production and production factors, and in the second, they recognize it as a system of interrelated technologies [5]. r. in his scientific views, adner interprets ecosystems in two main directions: ecosystems as affiliation and ecosystems as structure. in this case, the ecosystem, as belonging, focuses on the dissolution of traditional industry boundaries and the growth of interdependence and symbiotic relationships between companies, both within the same industry and across industries. with an ecosystem as a structure, the focus is on learning to create a value proposition and interact to achieve a particular value proposition. according to r. adner, the concept of ecosystem as belonging is not a completely new concept, but a slightly improved concept that studies the enterprise at a generalized or macro level. also, ron adner defines an ecosystem as "a set of multifaceted partners that must interact to realize certain value propositions and are interconnected by a structure that ensures the coherence of innovative activities" [6]. r. kapoor, a. gaver, m. cusumano, g. parker, m. in their research, van-alstine focuses on platformbased business ecosystems and distinguishes between product-based ecosystems and platform-based ecosystems [7]. research methodology scientific abstraction, grouping, comparison, retrospective and prospective, empirical analysis and other methods were used in the article. in the article, the scientific and practical importance of improving the theoretical, organizational and legal basis of ways of using the business ecosystem in commercial banks using the method of scientific abstraction was highlighted. also, based on the introduction of innovations in the world practice and developed countries, the organizational and legal bases of the ways of increasing the efficiency of the business ecosystem in commercial banks with the existing bases in our country were formed. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 52 www.americanjournal.org analysis and results when analyzing ecosystems as a new means of increasing competitiveness in the market of financial and banking services, it is necessary to understand the meaning of the term "ecosystem" from a scientific point of view, according to its structure and various characteristics. thus, currently there are several definitions of the essence of the ecosystem in scientific works, which differ primarily in the direction of companies, their goals and the angle of their study. figure 1. signs of digital banking ecosystems today, special attention is being paid to the introduction of digital technologies into the banking business, its transformation and improvement of customer service lines. many authors express their opinions about the importance of creating business ecosystems for banks, their advantages, as well as their impact on the development of the financial market. in particular, the need to organize ecosystems around the banking business, their features and advantages for banks, a fundamental review of the banking business, changing its business model in the conditions of working in the ecosystem, despite the fact that special attention is paid to the problems faced by the banks in the business ecosystem have not been fully studied yet. a.a. kobylko defines the ecosystem as a complex of enterprises that offer products and services from various sectors of the economy primarily under a single brand and without recourse to a legal entity [8]. however, in this case, according to the author of the dissertation, the fundamental and specific features of ecosystems, such as high level of interdependence and complementarity between ecosystem participants, are not taken into account. the economic definition of the ecosystem concept can be broadly divided into three main groups. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 53 www.americanjournal.org table 1 grouping of the ecosystem concept № group name the essence of the ecosystem group 1. entrepreneurial ecosystem it refers to a company or group of companies and its business environment, the business ecosystem is an integral part of a broader concept the socio-economic ecosystem 2. innovation ecosystem represents a specific innovation or new innovative value proposition and the group of actors who support it 3. business ecosystem refers to a group of interrelated and complementary companies that interact to create a value proposition it should be noted that selected groups of business ecosystems can be hybrid, but one of the models usually dominates when building business ecosystems. based on the definitions studied above, we can build on the concept of digital business ecosystem and see the ecosystem, as well as the banking ecosystem, as a collection of companies or services and products. including from different sectors of the economy) interrelated and complementary, united around one organization, including the number of platforms (in the case of the banking ecosystem around the banking organization and/or its platform) to more effectively meet the needs of the final beneficiary and increase its competitiveness in the market ( within a single continuous integrated process) [8]. it is also important to remember that in this process, defining the concept of ecosystem refers to companies that specialize in the digital environment. commercial banking ecosystems will be an important way of communicating with customers in the future. the combination of financial and non-financial services through ecosystems becomes a prerequisite for competition for the customer. banks that offer these integrated services go beyond providing traditional financial services and address a wide range of customer needs. current aspects of banking ecosystem development include: 1. digitization: banks are actively implementing digital technologies to facilitate access to banking services and improve user experience. this includes the use of new technologies such as mobile applications, internet banking, online platforms for transactions and blockchain. 2. artificial intelligence and machine learning: banks use artificial intelligence and machine learning algorithms to analyze customer data, create personalized offers and make decisions based on big data. it helps banks improve the accuracy of risk assessment, detect fraudulent transactions and improve the efficiency of processes. 3. cross-platform: today's users expect to access their banking services from a variety of devices computers, smartphones, tablets and even voice devices. banks are developing cross-platform applications and interfaces to provide uniform and convenient access to services, regardless of device. 4. ecosystem development: banks strive to create ecosystems that integrate various financial services and products under one platform. for example, it can be a combination of banking services with insurance services, investments, payment systems and even retail stores. such ecosystems allow customers to get all the necessary financial services in one place and simplify the process of interaction with the bank. 5. data protection: with the increase in the number of digital transactions and the use of online banking services, the risk of cyber-attacks and leakage of customer data increases. banks are actively implementing data protection technologies such as encryption, two-factor authentication, and american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 54 www.americanjournal.org monitoring of suspicious activity to ensure the safety of customer information. these aspects of the development of banking ecosystems help banks to be competitive, offer modern services and meet the needs of customers for quick and convenient access to financial services. the business ecosystem of commercial banks includes opening and maintaining accounts, lending, currency exchange, investments, insurance and many other services. the banking ecosystem creates a convenient and secure environment for carrying out financial transactions and provides access to various financial services on one platform. if the development of business ecosystems in developed countries is usually associated with hightech companies (bigtech), then their creation in our country begins on the basis of system-forming banks with a well-known brand that unites businesses from different, often unrelated industries and regions. the largest banks in the country are the most suitable foundations for creating ecosystems, because they have a wide customer base, are ready to adapt to modern business realities for maximum profit, and have detailed information about customers. factors affecting the formation and development of the business ecosystem of commercial banks are presented in figure 2. figure 2. factors affecting the formation and development of the business ecosystem of commercial banks in connection with the execution of the functions of the "escrow" system of the digital ecosystem, settlement and payment from one personal account and guarantee of the contractual obligations of the parties are ensured. until january 1, 2024, the profit tax rate for operators of e-commerce platforms integrated into the digital ecosystem will be reduced by 50 percent. taxpayers conducting electronic sales of goods (services), regardless of whether they are included in the national register of electronic commerce participants or not, according to articles 337 and 467 of the tax code of the republic of uzbekistan, reduced tax rates for profit tax and turnover tax are applied. by july 1, 2022, it is planned to integrate electronic databases that allow real-time data transfer to tax authorities through the digital ecosystem. in addition, the legal basis for the development of the digitalization of the national economy is being improved, including on the basis of the decree of the president of the republic of uzbekistan dated october 5, 2020 no. pf-6079 "on the approval of the strategy of digital uzbekistan 2030 and measures for its effective implementation" identification (lifeness check) was allowed, as a result, it was possible to use banking services and products without coming to the bank and without signing any contract. [9] american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 55 www.americanjournal.org according to this decree: "by january 1, 2022, it is determined to complete the digital transformation of commercial banks by providing a wide range of online services, including the sale of loan products, deposits and account opening. creating a business model of financial supermarkets focused on providing a wide range of banking and non-banking financial services (stock transactions, insurance, etc.) others), including increasing the scope and quality of service through mobile applications; it is intended to create a "regulatory sandbox" to simplify the development of venture ecosystems" [10]. uzbek startups develop in an ecosystem that supports or hinders their development. this ecosystem includes many national elements, but regional and international factors are also important, especially as the economy becomes increasingly open and global. access to finance and skilled personnel, including technology experts and entrepreneurs, is an important part of the ecosystem. good digital infrastructure and supportive government policies are also essential. startups thrive when the markets for their goods and services are large and active [11]. figure 3. commercial banks are the organizational structure of the digital business ecosystem access to the ecosystem begins with the registration of users in a personal account, which is represented by a digital service to account for the results of programs and projects on an open portal and to identify consumers. data of all participants of the system (users and commercial banks) are stored in one database [12]. the user has the opportunity to choose the necessary services from the general system, which ensures convenience and openness. institutions integrated into the system work taking into account organizational and operational systems, their activities are equipped with software, which reduces costs and improves the quality of services. banks are actively developing technological solutions such as internet banking, mobile applications, online payments, etc. to improve the convenience and ease of use of their services for customers. commercial banks must comply with financial regulatory laws and regulations and conduct internal controls and audits to ensure compliance with regulations and standards [13]. the business ecosystem of commercial banks is characterized by competition between different banks for customers and american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 56 www.americanjournal.org market shares. at the same time, banks can cooperate with each other, for example, through payment systems or within credit clubs. these elements form the basis of the commercial banking business ecosystem, which supports the functioning of the financial system and satisfies the needs of customers [14]. conclusions and suggestions on the basis of the introduction of innovations learned in the course of our research work, based on the approaches provided for elucidating the essence of increasing the efficiency of the introduction of the business ecosystem in commercial banks, we explained the author's definition of the introduction of the business ecosystem in commercial banks in the new version as follows: to the business ecosystem of commercial banks ensuring the operation of the banking system and the provision of financial services includes various factors and actors that interact with each other [15]. the main elements of the business ecosystem of commercial banks include: 1. clients: individuals, corporate clients and small businesses who use the services of commercial banks to manage their finances, obtain loans, invest and perform other operations. 2. banking products and services: commercial banks offer a wide range of products and services such as accounts, loans, debit and credit cards, investment products, insurance, etc. 3. financial regulatory bodies: government bodies and regulatory bodies oversee the activities of commercial banks to ensure compliance with laws and protect the interests of customers [16]. 4. competitors: other commercial banks, credit unions, and financial institutions are competitors of commercial banks, creating a competitive environment that encourages innovation and the development of new products and services. 5. technological infrastructure: commercial banks are actively using information technology to process and store customer data, automate processes, provide online banking and mobile applications [17]. references 1. decree of the president of the republic of uzbekistan dated october 5, 2020 no. pf-6079 "on approval of the digital uzbekistan 2030" strategy and measures for its effective implementation 2. szymanowska m. et al. an anatomy of commodity futures risk premia //the journal of finance. – 2014. – т. 69. – №. 1. – с. 453-482. 3. ivanov, a. ekosistema naoborot [elektronniy resurs] // vc.ru. – rejim dostupa: https://vc.ru/finance/97873-ekosistemanaoborot. 4. https://www.vedomosti.ru/finance/blogs/2019/06/27/804788 bankovskaya-ekosistema . 5. www.cbr.ru – цб рф «экосистемы: подходы к регулированию». апрель 2021. – с. 6 6. jacobides m., cennamo c., gawer a. industries, ecosystems, platforms, and architectures: rethinking our strategy constructs at the aggregate level. working paper, london business school, 2015. 7. adner r. (2017). ecosystem as structure: an actionable construct for strategy. journal of management, vol. 43, no 1, pp. 39–58. doi: https://doi.org/10.1177/014920631667845. 8. parker g., van alstyne m.w. (2014) platform strategy. school of management research paper no. 2439323, boston u. https://doi.org/10.2139/ssrn.2439323. 9. кобылко а.а. (2019). экосистемные компании: границы и этапы развития // https://vc.ru/finance/97873-ekosistemanaoborot https://www.vedomosti.ru/finance/blogs/2019/06/27/804788 http://www.cbr.ru/ https://doi.org/10.1177/014920631667845 https://doi.org/10.2139/ssrn.2439323 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 57 www.americanjournal.org экономическая наука современной россии. no 4 (87). с. 126–136. doi: 10.33293/16091442-2019-4(87)-126-136. 10. алиев м.м., мамедов м.а., рзаева в.в., сафарли а.х. экосистема как новая модель развития финансовых организаций // гуманитарные, социально-экономические и общественные науки // м. №8 2021 г. doi 10.23672/m6478-2891-3501-e. 11. bakhtiyarovich o. b. the role and significance of the regional investment environment in attracting foreign investments to the economy //conferencea. – 2023. – с. 5-8. 12. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. 13. abdullaevich n. i. foreign experiences of attracting foreign direct investments //the peerian journal. – 2023. – т. 22. – с. 46-50. 14. abdullayevich n. i. attracting foreign direct investment is a guarantee of progress //miasto przyszłości. – 2022. – т. 24. – с. 226-230. 15. хашимов ж. iqtisodiyotga to ‘g ‘ridan-to ‘g ‘ri xorijiy investitsiyalarni jalb qilish hajmini oshirish yo ‘llari //economics and innovative technologies. – 2023. – т. 11. – №. 4. – с. 93-99. 16. ravshanbek o’g’li h. j. the existing problems in attracting foreign investment to the national economy and ways to overcome them //the american journal of management and economics innovations. – 2021. – т. 3. – №. 09. – с. 53-59. 17. бутаев ж., раджабов у. актуальные вопросы развития фондового рынка в национальной экономике //экономика и социум. – 2021. – №. 4-1 (83). – с. 768-771. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 65 www.americanjournal.org multiple litigation in civil lawsuit m. m. ibrahim khalid abdullah imam jaafar al-sadiq university, salah al-din branch ibrahim.ka1995@gmil.com a b s t r a c t k e y w o r d s the invasion of right to privacy is considered as one of the modern torts in the english law and referred to as the tort of invasion of right to privacy. it is worthbearing in mind that this kind of tort was not known in the previously in the english law، and the defamation action did not give protection to the right to privacy، because it has only protected the reputation، and the law of tort، which is considered as a part of the common law،did only include the duty of confidence or duty of confidentiality، which participated in the presence of the traditional tort called the tort of breach of confidence or breach of confidentiality. as far as the iraqi law is concerned، the iraqi constitution of 2005 determined the context of the right to privacy، whereas the iraqi civil law no. 40 of 1951does not contain any provision determining the context of this right، nor does it provide for act regarded as the violation or invasion of this right. introduction the first topic : privacy and its characteristics the first requirement / definition of the rivalry antagonism in language it means controversy, dispute, or both (controversy and dispute. rivalry in the legal terminology the answer is yes or no, and it was said that it is the correct claim or the explicit answer is yes or no, and it was said that it is the opponent's answer by affirmation or denial.1 litigation in legal terms the iraqi jurisprudence defined it as a means of expressing the submission of the dispute to the judiciary . a part of the egyptian jurisprudence defined it as a legal phenomenon that includes the sum of the procedural actions drawn by the law, which aims to issue a ruling on the matter with the aim of resolving the dispute and removing the obstacle that hinders the path of legal life). it was also known as (a legal situation that arises from the judicial claim and requires that the litigants and the court take the procedures leading to the settlement of the dispute2 . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 66 www.americanjournal.org and the french jurist kiwenda defined it as (the group of actions related to the purpose of applying the will of law in a specific case). a part of the french jurisprudence defined it as (the legal situation in which the litigants and the court exist throughout the presentation of the dispute to the judiciary3. and we see that whoever defines litigation as (a set of successive judicial procedures carried out by the litigants or their representatives and the judge and his assistants according to a specific system drawn by the procedure law and begins with a judicial claim and proceeds with the aim of obtaining a ruling on the subject), was successful to a large extent, because the litigation is indeed a set of the successive procedures issued by the litigants or their representatives, the judge and his assistants, with the aim of obtaining a decisive ruling on the subject matter of the dispute before the judiciary, even if it is envisaged that the litigation will achieve its goal, by ending before the final settlement of the dispute, if one of the reasons leading to the litigation’s termination is achieved. before deciding on its topic . the second requirement / characteristics of the opponent civil litigation has several characteristics, namely: firstly. it is a set of sequential judicial procedures: litigation is a moving phenomenon until it reaches its desired goal, it must go through three main stages that represent a basic gradation that is necessary in order to achieve its goals. then it ends with the last stage, which is the stage of issuance of judgment . the litigation in these stages follows its procedures one after the other in a chronological sequence and follows a logical sequence, so that it seems that each of the litigation procedures is a prerequisite for the procedure that follows it. litigation sometimes expires without reaching the final stage when one of the reasons for its termination is realized . and there are those who see that litigation is synonymous with judicial procedures that are taken in the courts of justice, because what is meant by litigation is all actions that aim to apply the law in a specific case through the judiciary . while another believes that the civil litigation does not mean all judicial procedures that are taken in the courts, but rather is limited to the judicial procedures necessary to issue judgments, and it follows from this opinion that the precautionary measures such as those of the state judiciary and procedures that target a material activity such as execution procedures, even if they are in fact procedures judicial, but the term litigation in the strict sense does not include it . it seems that the second opinion deserves support, because the settlement of disputes, although it is the main task of the judiciary, but it is not the only task, as there are orders issued by the state judiciary that are issued after taking a series of judicial procedures. all judicial procedures simply taken in the court arena can be called the term litigation. secondly . multiple persons litigation : the litigation is characterized by its multiplicity of persons, and it is not possible to imagine a litigation involving one person, as there must be at least two litigants, one of whom presents it to the judiciary and is called the plaintiff, and the second is directed to him called the defendant, and without a plaintiff and defendant there is no civil litigation, and for this reason they are called the parties to the litigation . there may be multiple plaintiffs or defendants in a single dispute since its inception or during the course of the dispute through the intervention or inclusion of others in the dispute, and it follows that the person is considered a party to the dispute that he acquires a number of rights, including the right to defend and present defenses, and this capacity also results in bearing a group among the duties are the burden of proof and bearing the costs of the litigation . the judge is considered an essential person in the litigation, because the litigation requires that it be presented to a judge in order to decide on it and american journal of business management, economics and banking volume 15 august, 2023 p a g e | 67 www.americanjournal.org give its subject matter judicial protection. this is why it is said that there is no litigation without a judge, and the example of the procedures that the judge performs are the preparatory decisions that are issued during the course of the litigation and the judicial rulings that end the litigation . the litigants may seek the assistance of their agents in directing the litigation .4 therefore, the litigation attorneys are from its persons, not from its parties, because their role is limited to providing technical assistance to the litigant, and their main characteristic remains that they are judicial aides, because they assist the judge in performing his mission with the legal culture, knowledge and experience they possess in the law that enables them to formulate the lawsuit petition and present defenses in a sound legal form. . among the judicial assistants are experts, judicial assistants, and judicial informants, because they contribute significantly to the litigation procedures.5 third. legality of litigation procedures : the litigation is characterized by the fact that its procedures are legal, because the law draws these procedures and organizes their sequence at each stage of the litigation, and because the parties to the litigation are restricted to the procedures imposed by the law, so they are not entitled to take procedures other than those drawn by the law, but they are bound by the logical order and chronological sequence of the litigation procedures. it is accepted from them to submit or delay the litigation procedures, contrary to the order and sequence created by the law . the third requirement / conditions of the discount the existing dispute must meet several conditions, namely :6 1. the parties to the dispute must have the capacity to litigate. 2. the two litigants must appear in person or through their representatives . 3. the litigation must be submitted to the competent court, that is, it must be the one with jurisdiction to hear the case . 4. the aim of the litigation should be to obtain a ruling that ends the dispute. 5. the forfeiture of the litigation does not lead to the forfeiture of the litigant's right, so he may return the dispute to the judiciary with a new litigation, as long as his right has not been extinguished by the statute of limitations . 6. the litigation takes place from the date of notification of the lawsuit to the defendant . the second topic the first claim / civil lawsuit the lawsuit is the legal means that protects and claims rights, and some jurists define the civil lawsuit as an authority for a person, in order to resort to the judiciary to determine his right or to protect it, while others believe that the civil lawsuit is the authority to resort to the judiciary in order to reach law enforcement .8 therefore, the civil lawsuit is to authorize the individual the owner of the right or the legal position the victim of the right to obtain this protection, and this right is what is called the lawsuit. . there is also another means of dispute settlement called the civil case management, which is a set of procedures aimed at organizing the case, collecting data and determining the origin of the dispute in order to settle it by alternative means to the courts . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 68 www.americanjournal.org on this basis, the civil lawsuit is a means to protect the right and is not a right in itself, just as he envisions the existence of several lawsuits at the same time in order to protect the right, as rights have other legal ways to protect them, such as the legal defense, but what distinguishes the lawsuit is that it is filed to the court as for the other methods, the right holder may proceed with them without the intervention of a legal authority. accordingly, it follows from the civil lawsuit that it has several characteristics, which are:9 1. lawsuit is a legal means: it is what distinguishes it from other acts, such as reviewing the security authorities in order to lift an assault from a person . 2. the lawsuit is a means of defense and protection of rights or obtaining or approving them: the person does not have the right to fulfill his right by himself, but he must resort to the judiciary by filing a lawsuit . 3. lawsuit is an optional and not compulsory means: a person can resort to the judiciary or waive a civil lawsuit, for any reason, as he is not obligated to file a lawsuit . the second requirement / the elements of the civil case the civil lawsuit has pillars that do not rise without it, as it is based on the presence of the plaintiff and the defendant, and some add the defendant, which is the reason for filing the civil lawsuit. the plaintiff or the defendant, which is what is called interference in the civil lawsuit, but in principle, the basic pillars of the civil lawsuit are the plaintiff and the defendant. and as follows :10 claimant the plaintiff in a civil lawsuit is every person who has suffered harm, whether material, moral, or moral, and it is required that the damage caused is direct, verified, and identifiable, for example: a person’s injury to his body or the cutting of a member of the body, and here the civil lawsuit is suspended until the lawsuit is decided as for the moral harm, it is an example of an injury to a person’s honor or reputation, and the civil claimant may be the person who suffered harm, i.e. the victim, and it may be another person who did not directly harm him, for example: the son who was harmed by the harm that befell his father. in order for the lawsuit to be accepted, it is required that the defendant be of the capacity or qualified to file the lawsuit, and what is meant by the capacity in the civil lawsuit is that the person filing the civil lawsuit is injured, and is qualified to institute the lawsuit, in the sense that he has the legal capacity to institute it, or he has the right to appoint someone to legally represent him, and if there is no in the latter, the investigating judge or the court must appoint a person to take charge of the civil claim. defendant he is the person who is required by law to compensate for the damage he caused to the other, as the law requires that a civil lawsuit be filed against the one who caused the damage, and if this person is not qualified for litigation in terms of his lack of the necessary capacity for litigation, then the lawsuit must be filed in this case against his representative legally, and in the absence of a legal representative, the court shall have the right to appoint someone to act on his behalf or his representative . the third requirement / types of civil lawsuit civil lawsuits are divided into three types as follows :11 civil action in kind american journal of business management, economics and banking volume 15 august, 2023 p a g e | 69 www.americanjournal.org they are the lawsuits that are based on an in-kind right, such as a property claim, for example, and since the in-kind rights are original and ancillary and are contained exclusively, the in-kind lawsuits are also contained exclusively. mixed suits these are lawsuits that are based on two types of rights, the first is a personal right and the second is a real right, which arise from a single legal process. transferred lawsuits transferred lawsuits are lawsuits in which the defendant (subject of the claim) has movable property. real estate lawsuits they are lawsuits in which the defendant (subject of the claim) is real estate or a real estate right, and they are of two types.12 the third topic the first requirement / conditions of the civil case in order for a civil lawsuit to be valid and free from any blemish or defect, certain conditions must be met in it, and these conditions are as follows:13 eligibility capacity is one of the most important characteristics of legal personality, as it depends on determining the person’s activity and effectiveness, in terms of his ability to acquire rights and assume obligations on the one hand, and to practice actions and actions related to these rights and obligations in a legally reliable manner on the other hand. accordingly, the capacity required to institute a civil lawsuit is the capacity to perform, as the law stipulates that the parties to the lawsuit or litigation must enjoy the legal capacity to which the lawsuit relates, and in the event that they lose that capacity, they must be represented by someone specified by the law for that task . interest undoubtedly, the right to institute a lawsuit is restricted by the need for this lawsuit to be instituted to be related to a specific interest, and this interest is legal protection, and it is achieved if the plaintiff obtains a benefit from behind the lawsuit, and this interest is represented in the requirement of the right or the removal of the aggression against him or compensation the interest must be available at the time of submitting the request to the court, whether original, incidental or temporary, and the interest must continue until the case is considered and decided. this is because the lesson is in the availability of the interest at the time the lawsuit is filed, considered and decided, and not only in the date of its filing .14 rivalry the litigation in a civil lawsuit is defined as a set of procedures that start from the time the lawsuit statement is announced, until the time it expires by adjudicating its subject matter or expires by conciliation or overturning, as the duration of the lapse of civil judgments differs from the lapse of the existing litigation between the two parties to the lawsuit .15 the second requirement / procedures for filing a civil lawsuit the procedures for filing a civil lawsuit before the competent court must include two types of aspects, namely :16 theoretical aspects of civil lawsuit procedures it is to accurately specify the case data, as it contributes to determining the correct method of pleading, and then all that data related to the subject matter of the dispute must be arranged accurately; in order american journal of business management, economics and banking volume 15 august, 2023 p a g e | 70 www.americanjournal.org to prevent the filing of a second lawsuit, and otherwise a penalty may be imposed on the lack of such data, so the judge is forced to ask the plaintiff to fix that defect, within a certain period, otherwise the court will invalidate the lawsuit petition, as the law stipulates that the lawsuit petition must be united, that is, the lawsuit must it is filed with one petition, and in the event that the lawsuit includes more than one lawsuit, the court has the right to instruct the plaintiff to limit his request to one lawsuit. practical aspects of civil lawsuit procedures these aspects are summed up in how the lawsuit petition is written practically, which depends on the person who prepares it, whether from lawyers or specialists in law, and includes: how to present the subject of the lawsuit, coherent linguistic formulation, and accurate inference in the legal texts directly related to the subject of the lawsuit. how to submit a petition for action, which must be submitted directly to the judge, who in turn forwards it to the judicial assistant; for the purpose of registering it and giving it a serial number according to the precedence of its submission, then it is stamped with the court’s seal, and it is sent to the accounts to collect the legal fee for it.18 the third requirement / litigation in iraqi law discount from the general system: the amended civil procedure law no. 83 of 1969 dealt with the litigation in articles (4 and 5) of it, so article (4) of it stipulated that (it is stipulated that the defendant be a litigant whose approval entails a judgment estimating the issuance of a declaration from him, and that he is judged or bound by something based on the estimation that the claim is proven with that the litigation of the guardian, the trustee, and the trustee with respect to the endowment’s money is valid, and his litigants are those whom the law considers a litigant, even in the cases in which his approval is not enforced (and article (5) stipulates that) it is valid for one of the heirs to be a litigant in the lawsuit that is instituted against or for the deceased, but the litigation is in the eye of the estate’s assets he is the inheritor of that eye.19 the court must ascertain the existence of litigation in the case from the outset, and when proceeding with checking the notifications of attendance. if the two parties appear, it must verify their personalities and their relationship to the case because it is the right of the law and public order. the court may check whether the defendant is fit to litigate the plaintiff or not, because the trial of two there is no legally binding relationship between them, which is a waste of time and preoccupation with frivolity and may harm the rights of others. the court may, if it finds that the litigation is not directed, decides to dismiss the lawsuit at any stage of the lawsuit, as article (80/1) of the civil procedures law stipulates (if the litigation is not directed, the court will decide even on its own initiative to dismiss the lawsuit without entering into its basis). and that the defense of the litigation may be made at any stage of the lawsuit, and the litigants adhere to it, as stipulated in article (80) of the civil procedure law, as paragraph (2) of it stipulates (the litigant may express this defense in any case in which the lawsuit is) and it is permissible to plead that he is not directed litigation even before the court of cassation when appealing against the judgment decision, as stipulated in paragraph (3) of article (209) of the code of civil procedure, where it states (it is not permissible to make a new payment or bring in new evidence before the court competent to consider the appeal in cassation except for the payment litigation and jurisdiction, and the case has already been judged20 . persons who are not suitable as litigants in the lawsuit : there is a group of people who are not fit to be litigants in the lawsuit, and their litigation is useless, and filing a lawsuit against them has no effect, and they are:21 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 71 www.americanjournal.org 1. the person who did not place his hand on the claimed object . 2. the depository for the buyer . 3. the depository for the creditor of the depositor . 4. the debtor owes the creditor. 5. the buyer's buyer to the seller . 6. the tenant to the tenant in the cases of abandonment and the prevention of opposition because it must be filed by the lessor or the landlord against the tenant or the usurper . 7. the lessee to the mortgagee .22 8. the agent to lend to the objector . 9. a creditor to another creditor. conclusion the issue of litigation is one of the important procedural issues in the civil procedure law, as it is agreed upon that certain conditions must be met in order to accept the consideration of the case before the judiciary. at the forefront of these conditions is the litigation condition or capacity, which must be met by both the plaintiff and the defendant, which means the existence of a link between the persons of the case, namely the plaintiff and the defendant through whom the case is initiated, and the right or the legal position that is the subject of this case . the argument that the litigation is not directed is considered public order and the parties cannot agree to violate it or not to raise it, in addition to that it is a right of the law so that it can be raised in any state of the case and the court can raise it on its own even if the litigants do not stick to it, even for the first time before the court competent to hear the appeal by cassation, and its lack of availability leads to dismissing the case without entering into its subject matter . the importance of litigation is due to its role in achieving judicial protection for its owners. it is not permissible to resort to the judiciary except for those who need this protection, and this protection is not granted by the judiciary except for the owners of disputed rights and legal positions. the importance of the litigation does not stop at this limit, but rather the aim of its request lies also in confirming the effectiveness of the judgments issued by the judiciary, because the judgment issued in a case does not have its effectiveness unless it is issued against the person with the capacity in this case. in addition, this condition aims to protect courts from tampering, as if lawsuits were allowed to be filed by those who do not have the capacity of adversary, malicious lawsuits would multiply and much of the judges' time and effort would be wasted . the importance of the subject matter also comes from the importance of the litigation itself in its achievement of a just and prompt court if the validity of the litigation’s orientation is decided before delving into the subject matter of the case and that it prevents the repetition of the subject matter of the case, as it prevents the filing of more than one case in one subject matter, and thus prevents conflict. judicial rulings and their conflicts, and this is due to the fact that it is possible to defend it at any stage of the lawsuit, even before the court of cassation, in addition to the fact that verifying it in advance prevents reconsideration . any litigation procedure, and this matter by its nature is sufficient to reduce the number of many cases that burden the courts, which leads to saving time for studying cases and resolving them within the prescribed time limit, in addition to highlighting the positive role of the court through the important role it plays, represented in its ability to raise it on its own. itself, and all of this confirms that the litigation is one of the essential conditions for considering the case in all stages of the american journal of business management, economics and banking volume 15 august, 2023 p a g e | 72 www.americanjournal.org trial, even in those who challenge the ruling and who raises a defense from the defenses, but despite all that, this issue did not receive enough attention on the part of the legislator, and therefore the jurisprudence dealt with the litigation a lot . this is by giving a brief summary in the general literature, and jurisprudence did not collect the legal rules related to them and root them in an intellectual and logical unit. therefore, these rules seem dispersed and there is no link between them . its legal nature, and this is what led to its mixing with other suspected procedural actions, such as the lawsuit, the substantive right, and the judicial claim. sources first, the holy quran second / research, books and magazines 1. our professor, dr. abbas al-aboudi, explaining the provisions of the civil procedure code, p. 196 . 2. dr.. ibrahim naguib saad, private judicial law, part 2, manshaat al-ma'arif, alexandria, without the year of publication, p. 7. 3. referred to: dr. ahmed abu al-wafa, in his book explanation of civil and commercial pleadings, pg. 516. 4. referred to: d. fathi wali as (a group of actions that aim to apply the law in a specific case by the judiciary) see his author, al waseet, p. 291 . 5. cuche etvincent , preces de proce'deure civileet commerciale , 10ed, 1994, p.256 . 6. rene japiot , troite elementaire de procedure civileet commerciale , 3e ed , 1986, p.49 . 7. dr.. wajdi ragheb, principles of civil litigation, p.5. 8. in the same sense, dr. muflih awwad al-qudah defined it as (a set of procedures that continue from the time of its initiation with a judicial claim to the time of its completion with a decision on its subject matter or its expiry by such as forfeiture or conciliation). see his author, the origins of civil trials, p. 173 . 9. dr.. ahmed meligy, the stagnation of civil litigation, 2nd edition, dar al-nahda al-arabiya, cairo, 1991, p.11. 10. dr.. wajdi ragheb, principles of civil litigation, previous source, pp. 5 and 6. 11. dr.. fathi wali, al waseet..., previous source, p. 347. 12. dr.. wajdi ragheb, principles of civil litigation, previous source, p. 10 . 13. dr.. fathi wali, previous source, p.8 . 14. dr.. mahmoud muhammad hashim, civil judicial law, part 2, pg. 221 . 15. dr.. wajdi ragheb, principles of civil litigation, previous source, pp. 7, 8 . 16. dr.. wajdi ragheb, principles of civil litigation, previous source, pg.9 . 17. saed waheed kamel hamdallah, interruption of the civil case in under palestinian law, palestine: an-najah university, page 10. 18. ahmed abu al-wafa (1983), principles of civil trials (1st edition), page 138. 19. mufleh awad al-qudah (1988), principles of civil trials and judicial organization (2nd edition), jordan: dar al-thaqafa library for publishing and distribution, page 272. 20. jed walid atta al-manasra (2012), civil case management and its practical applications in accordance with the provisions of jordanian law, jordan: middle east university, p. 25. 21. saed waheed kamel hamdallah, interruption of the civil case in under palestinian law, palestine: an-najah university, page 10. 22. fathi al-wali (1986), mediator in the civil judiciary, pg. 44. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 47 www.americanjournal.org economic growth and ways to measure it madina norbutaeva raxmatullo qizi 145 school tashkent, uzbekistan yashnabad district, istikbol street, 37 economics a b s t r a c t k e y w o r d s economic growth is an increase in the volume of production of goods and creation of services in the country compared to previous years (periods). ensuring economic growth is the main goal of any country's economic policy. year after year, the increase in the number of the population and the continuous increase in the needs of people are among the main reasons that make economic growth a condition. economic growth serves to raise the standard of living of the population and ensure the well-being of the people. the basis of economic growth is the development of the leading industries in the economy. this article provides information on economic growth and its measurement methods. economic growth, production, foreign market, demand, supply, product. introduction economic growth relies on an advanced structure of production, high labor productivity, production of competitive products in high demand in the domestic and foreign markets, and sale of products in favorable markets. in other words, economic growth means a constant increase in the real volume of production and, at the same time, an improvement in the technological, economic and social characteristics of the development of society serves as a basis and shows a positive change in the volume of real gdp during a certain period of economic growth. the rate of economic growth is reflected in the rate of gdp growth. economic growth represents the general state of development of the country's economy. although the change in the volume of real gdp provides information about the state and dynamics of the country's economy, it does not fully reflect economic growth. for example, the growth rate of the country's population was 3%, and the real gdp growth rate was 3%. in this case, even though gdp has increased, people's incomes remain the same. therefore, to fully reflect economic growth, another indicator the change in real gdp per capita is used.if the change in the size of the real gdp represents the development of the country's economy in a certain period of time, the change in the size of the real gdp per capita serves to assess the economic development through the standard of living of the people. . these are quantitative factors of economic growth (for example, the expansion of cultivated land has a positive effect on gdp growth). economic growth that occurs as a result of the wider involvement of these factors in the production process is called extensive growth. there are also qualitative factors of economic growth, which include labor, capital and land (natural) resource productivity. economic growth that occurs at the expense of qualitative factors is called american journal of business management, economics and banking volume 23 april 2024 p a g e | 48 www.americanjournal.org intensive growth.limited production factors limit the possibilities of extensive growth. therefore, intensive growth is effective in the context of limited resources. technological progress also stimulates intensive economic growth. in recent years, a number of social indicators are considered as a condition and result of economic growth. in the area of growth, the dynamic of employment; in the field of distribution the dynamics of real incomes of the population and a number of other indicators; in the field of exchange the development of the material base of trade and catering, the dynamics of retail trade turnover; in the field of consumption the growth of consumption and nonproduction accumulation is included in such indicators. the main positive aspect of economic growth is its effect on changes in the structure of production and consumption.in the above picture, we can see the growth values of the gross domestic product in different countries. while analyzing the macroeconomic processes using the gross demand-gross supply model, we encountered the problem that the possibilities of increasing the real gdp in the short term are limited by the vertical section of the gross supply. after reaching the level of full employment, in order to further increase the volume of real gdp, it is necessary to shift the aggregate supply curve to the right, that is, to increase the amount of used resources."if the short-term state of the economy is determined by the large aggregate demand, the long-term development of the economy is determined by the large production possibilities. therefore, the real sector is in the center of attention in the modeling of economic growth. economic growth means an increase in aggregate supply, or in other words, an increase in the size of real and potential gdp. economic growth means not only the growth of real income of the country, but also the growth of real income per capita. therefore, economic growth is measured in two different ways. in the first method, economic growth is determined as a change in real gdp compared to the previous period and is used to determine the dynamics of the country's overall economic opportunities. in the second method, economic growth is determined as a change in real gdp per capita compared to the previous period. sim, yamd, smd indicators can be used instead of gdp in economic growth theory and models. in economic theory, economic growth is considered to depend on the ratio of income to consumption and investment. if the dynamics of the volume of consumption indicates the purpose of economic growth and the increase in the standard of living, the change in the volume of investments means the growth of resource opportunities and the materialization of technical innovations. . there is a sufficient reciprocity between consumption and investment, because the increase in the amount of current consumption and the decrease in the share of investment in income reduce the opportunities for economic growth. economic growth is measured in real terms, in comparative terms. every country strives for economic growth, because economic growth leads, firstly, to an increase in the size of the national product and income, secondly, to the effective use of resources, thirdly, to the emergence of new opportunities and opportunities, and fourthly, to international leads to an increase in the country's reputation in the markets.the category of economic growth is the most important characteristic of social production in any economic system. economic growth means that in a certain period of time it becomes easier to solve the problem of limited resources and it becomes possible to meet human needs more widely. economic growth is a component of economic development. measuring economic growth in terms of absolute gdp or real per capita gdp depends on the purpose of the growth. usually, the economic growth of a country is measured by the increase in the absolute american journal of business management, economics and banking volume 23 april 2024 p a g e | 49 www.americanjournal.org size of the gross domestic product in the assessment of its economic potential, and the measurement by the increase in the real gross domestic product per capita is used to compare the standard of living in the country. these indicators describing the rate of economic growth of the country (real gdp growth and real gdp growth per capita) are quantitative indicators, which, firstly, do not fully take into account the increase in product quality, and therefore, it does not fully describe the real increase in well-being; secondly, the growth of real gdp and gdp per capita does not reflect a significant increase in leisure time and leads to an understatement of the real level of well-being; thirdly, quantification of economic growth, on the other hand, does not take into account its negative impact on the environment and human life. economic growth is expressed in the growth of the potential and real gross national product (gdp fig. 1), the increase in the economic power of the nation, the country, the region. in the narrow sense, economic growth is a process that is born directly at the production stage, acquires a stable character in the remaining stages of social production, leads to quantitative and qualitative changes of productive forces, social product in a certain period leads to increase and increase of people's well-being. in a broad sense: economic growth, as a criterion of economic development, by its very nature, is the main component of the overall trajectory of society's development. together with other components (social, political, demographic, etc.), it determines the direction of social movement, the character of the entire social development (progressive, regressive or inertial). today, economic growth is an important feature of the modern world. an increasing population, the scale of production and employment, national product, standard of living, and more free time from work indicate economic growth. gross domestic product is a reduction in gross receipts and a macroeconomic indicator that directly reflects the market value of goods and services at the end of each year (that is, intended for direct consumption). also, the report produced during the year for consumption in all spheres of the economic territory of the yima countries, the national equipment production factors are the reserves of fixed exports. this concept was first proposed by simon kuznets in 1934. economists of the world share the consistency of production of countries with gdp as an annual report. gdp determines the price increase for the current year based on current prices (without ratio) in world markets. the imf (with a proper assessment of the crisis) seals the price increase feature of the previous or any other into the annual reserve distribution. gdp always takes into account existing products and to what extent countries have production growth, prices are determined using the gdp level. next to gdp, the economy returns to its potential by employing a fully sold labor force. the opportunity for fdi is to increase the importance of direct and reciprocal relationships with research in other areas of full employment and economic opportunity with fdi.[2] gdp is calculated at exchange points between countries at exchange rates in any national currency or valued using foreign currencies. in order to evaluate these values, parity purchasing power parity (ppp) is introduced in the world market (to find out the accuracy or excess of international comparison). today, products of a fixed amount or stable size known as "market value" can be traded in the free world market. conclusion: gross domestic product is also an indicator that describes the overall results of the country's economic activity during a certain period (month, quarter, year). it is the expression of the market value of goods and services produced by all the enterprises located on the territory of the country (including foreign and joint enterprises) with total factors of production, and its amount is calculated on the basis american journal of business management, economics and banking volume 23 april 2024 p a g e | 50 www.americanjournal.org of the system of national accounts. it is used to describe and analyze the development of the country's economy at the macro level. references: 1.статистика. учебник. /под ред. и.и. елисеевой. – м.: проспект, 2010. 2.харченко н.м. экономическая статистика. учебник. – м.: дашков и к, 2010. 3.n.m.soatov, x.nabiev, d.nabiev, g.n.tillaxo’jaeva. statistika. darslik. – t.: tdiu, 2009. 4.nabiyev x., nabiyev d.x. iqtisodiy statistika. darslik. – t.: aloqachi, 2009. 5.экономическая статистика. учебник. / под ред. ю.н. иванова. – м.: инфра-м, 2009. 6.статистика: учебник. / под ред. и.и. елисеевой. м.: высшее образование, 2008. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 93 | p a g e the role and importance of the time factor in determining the effectiveness of investment management in construction enterprises g’iyosov ilhom karimovich associate professor of the department of economics, tashkent university of architecture and construction karimov inomjon ortikbayevich tashkent architectural construction university, acting associate professor, uzbekistan a b s t r a c t k e y w o r d s in this article, the time factor is studied in the management of investments attracted to construction enterprises, as well as approaches to assessing the factor of time in the life cycle of projects. investment, investision project, efficiency, time, factors, project, exploration, design. introduction humanity has always sought to anticipate the future. imaginary dreams have gone away and have developed or implemented many projections, i.e. "scenarios" with the goal of preventing the collision of many conflicting factors. but still, the time factor is a reminder that these scenarios have their own impact on effective implementation and cannot be calculated with it. in the conditions of today's globalization and sharp competition, the time factor plays a particularly important role in the implementation and effective management of investment projects. that is, in the effective management of investment projects, calculations related to the assessment of cash flows consist in ensuring accuracy and reliability. in the context of market economics, the need to take into account the time factor in the management of investiture projects is associated with monetary inequality at different periods of time. also, methods for assessing the effectiveness of decisions made on investment projects are associated with certain time periods. in the market economy of uzbekistan, long-term pragnozi "great future" xnnt and" kpmg " company prepared a work on the development strategy of the republic of uzbekistan until 2035, which will undoubtedly ensure macroeconomic stability and economic growth in the socio-economic development strategy of uzbekistan, increase the competitiveness of economic sectors, investment and export potential, create favorable conditions for the development and protection of, population income growth and underserved reduction are envisaged. the need to develop a strategy is associated with solving existing socio-economic problems, risks and threats that limit the sustainable american journal of business management, economics and banking volume 19 december, 2023 p a g e | 94 www.americanjournal.org development of the economy in the long term, as well as setting goals and priorities for the transition from the current state of the economy and social sphere to sustainable development and increasing the standard of living of the population. [2]. thematic literature analysis many scientific works have been carried out abroad and in our country on the problems of investment, construction and project management.. on the formation of investment projects and programs of foreigners, the theoretical foundations and practical aspects of assessing the effectiveness of krasovsky v.p., vilensky p.l, livshis v.n, smolyak s.a., s.kryukov, e.berezovskaya, r.m.melnikov, m.v.gracheva g.alexander, dj.bailey, u.it has been examined in the scientific work of sharp et al. scientific and practical recommendations related to the problems in improving the management efficiency of investments in our country and their elimination b.s.mamatov, s.r.umarov, d.yu.khojamqulov, e.i.nosirov, n.g'.karimov, sh.i.mustafakulov, o.m.azizova, d.g'. gözibekov, b.x.khodiev r.x.khojimatov, d.x.nabiev, sh.r.rajabbaev, b.sh.muminov, a.x.khudoyberdiev, sh.n.zainutdinov, m.q.ziyaev, a.n.djabriev, r.i.studied in the scientific work of the nurimbetovs. but today, the factors that affect the effectiveness of investment projects in construction are considered from issues that have not been sufficiently studied and are waiting for their own solution. research methodology the research process used methods of institutional and dynamic analysis, logical comparison, generalization, scientific observation, systematic approach, statistical and comparative analysis on the topic. also, correlation and regression methods were used in assessing the impact of institutional units on the effectiveness of the management system in construction enterprises. analysis and results time is a kind of resource of public production itself, a factor of inescapable changes, economic entities that carry out economic policies, a psychological period necessary for the realization of state institutions. any investigation is considered a time as the most important factor in the design, construction and operation of a project, along with material, labor, financial and information resources. time factor investision affects the economic interests of all participants in the process. socio-economic processes continue in their timely, tactile, temporal, inertial properties, the interaction of which forms the entire system of delays in the economy. general inertia in the development of investment-construction exploitation activities during this period is formed as a result of a collision with consumer, technological, investment, innovation, educational, demographic, management, organizational, information and other delays. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 95 www.americanjournal.org figure 1. description of the pictures of the inconsistency of the time factor in the introduction of investments in construction enterprises source: developed by the author based on research. forecasting becomes more and more difficult several times as the complexity of the structure of the world economy, relations between countries, the dynamics of shifts in the ratio of economic and scientific and technical capacities of different states increases. in perspective, it is increasingly difficult to determine where the main points of bifurcation occur, how the transition to a new state can occur (if it happens), the emergence of a resonance effect, that is, the impact of a new quality on a group of countries, and the scope of such an effect. therefore, it is imperative to take into account a number of economic, cultural, social and other factors for a reliable forecast of the development of society (including economic and inextricably linked investment-innovation-construction-exploitation activity forecast). [3]. when time destroys certain things, it increases the narh of others. determining the sequence of economic events, the duration of an economic event and the nature of this phenomenon, the impact of a crisis (violation of economic development) on one of the causes without taking into account the time factor, analyzing the movement of economic entities, performing various financial calculations, developing economic forecasts, production programs difficult. perhaps, in the study of the phenomenon of time, economics, as a science, can not only use the achievements of physics, but also pictures of the time factor being unknown dynamics of technical and economic indicators of the organization; increased costs of manorial or physical wear of the main tools; supply of raw materials, production and demand for them, as well as seasonality of production or sale of products; changes in product and resource patterns over time; changes in the parameters of the external environment (costs, inflation, tax burden, duties, excise legislation) over time; time intervals (delays)between product development and realization, resource acquisition and application; costs, the implementation of the results at different times, that is, not at some specific time, but during the period of realization of the entire project american journal of business management, economics and banking volume 19 december, 2023 p a g e | 96 www.americanjournal.org significantly complement them, enrich other disciplines, especially. even at the shortest time intervals, production is constant, while consumption is dependent on narhs and income. time plays an important role in the theory of economics, especially in the theory of capital and the analysis of the savings market. all developed countries have got rid of illusions to the prevention of an economic crisis with the help of certain policies or other measures, they recognize the power and inevitability of the business cycle, and in predicting only try to mitigate its consequences. time factors have an influence on the financial result of the project in different directions, an indirect nature. from the classic formula "money-commodity-money": production period trading deadline and payment delay figure 2. classical period: "money-commodity-money" it follows that the full turnover of money in time consists of two main periods: the production and sale of products. each of these periods contains many phenomena that determine the conditions for the formation of cash flows. high inflation reduces the importance of time factor exposure compared to stable conditions. the process of putting key capital elements into work, including the creation and movement of its passive part, assumes time, while its duration depends on the technical characteristics of the production process on the one hand, and on the other-on the level of development of production forces and itt achievements. the actual period of capital investments and its intensity are the target functions of two arguments: internal conditions and the rate of self-compensation of new industrial capital. in turn, the most important condition for reimbursement is the participation of the costs of the production of the product, which are prepared using reorganized production funds, and the dynamics of their savings. if it is not possible to save on expenses, then no payment can be covered, if the savings are formed, the charge of which is insufficient or their dynamics are unstable, then the level of income becomes a hindrance factor. the competitive advantages of this or that state are characterized not by the richness of natural resources, a low level of wages, but by the systematic and functional conditions of the pace of compensation of additional industrial capital. therefore, it is necessary to bring not foreign currency into uzbekistan, but mainly advanced technologies. in developed countries, the investiture period does not exceed an average of 10 years. the average duration of the realization of the industrial investiture project (first phase) would not be less than 10 years: 2.0-2.5 years of pre project work and design; 5-8 years of construction and 3.0-2.5 years of operation and mastering full project capacity. the normative exploitation phase of the created industrial production lasted an average of 25 years, and above the norm another 10-15 years. in the us, the duration of a similar full investiture cycle includes: 3 years construction, 7 years exploitation, the period of coverage is the first three years. money product american journal of business management, economics and banking volume 19 december, 2023 p a g e | 97 www.americanjournal.org table 1. the duration of the investiture period in the creation of single-storey industrial buildings of one type, the week: source: developed by the author based on research. the main directions for taking into account the time factor are: forecasting the dynamics of the main macroeconomic indicators of the development of mass production; option design, etc. taking into account the time factor implies a comparison and sum of costs at different times and other equal conditions. as you know, no profit received will not be seen in excess at the time of its receipt. to date, methodical ways to take into account the time factor have not been fully developed, in most cases, airpods about its accounting formula are issued or declared, costs are adjusted according to a building, organization, which is similarly built. investigation has a two-way approach to assessing the time factor in the process: a) optimized-shows costs of different sizes at different times by fact, which is not interested in the analysis of reasons and processes that interpret the fact and give it a dynamic assessment. at the core of this approach, the general laws of "bringing in" costs at intervals are outlined [5]; b) identification of real economic processes that allow us to talk about the cause-time factor-"chronic depreciation" due to scientific and technical progress, which prevents investments from being left on time and choosing options that require less capital," alternative effect " of the turnover of funds in other sectors and regions, changes in the state's investment opportunities, multiplicative impact, etc. [6]. time factor accounting allows you to reduce the duration of the optimization of the period of construction, design and operation, adopt the norms of based reserve (including periods of transportation of materials), compare the efficiency achieved by design and fact. at any time, the option with the least amount of time of unfinished construction will be the most useful. the main time and value parameters of the integrated calendar plan for the implementation of the investision-construction (project-search work plan combining the work financing plan and the production plan for the preparation of the product), which form the main information in the formation stage of the era usa gfr france great britain pre-draft justification, decision making and construction permission. 4,5 12 16 26 preparation of architecturalconstruction drawings 6 12 10 20 preparation of cost estimates for construction by types of works and characteristics of material resources 6,5 17 10 11 construction 23 29 30 57 when not combining phases, investision period 40 70 66 114 investision the actual duration of the period 33 56 56 96 unification coefficient, % 17,5 20,0 15,2 15,6 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 98 www.americanjournal.org of contracts and the selection of forms of cooperation between investors, are as follows [7]: investigation is the beginning of the process; preliminary-clearance of permission documents; liquidation of the reconstructed part of the production process; commissioning of the re-created production and other capacities and their registration; return on investments; return of discounted investments; the calculation limit (life cycle) or predefined period for the lifetime of the investment project. the assessment of the time for the pre-draft period will depend on the level of permits and the types of documents being allowed and can vary from zero to several years. the costs (value estimates) of this period are mainly determined by regulatory documents, as well as the remuneration paid to the necessary project and consulting services for the preparation and presentation of preliminary documents. the indicators of time and value for the design and construction period are the most predictable part of the project, which is based on a system of estimated norms and norms that have been sufficiently tested. in addition, this period of the investiture project life cycle is a managed process, therefore, the dispersion of these period parameters, as a rule, is minimal. conclusion taking into account the time factor in the process of unpredictable exploitation of the project presents special difficulties (especially if the result of investments is industrial production based on scientific and technical developments), since during this period the intensity of the escrow of the elements of buildings and structures under the influence of natural-climatic and technical factors is different. the degree of reliability of any structure depends on the operating conditions. the service life of civil and industrial buildings in the republic of uzbekistan is quite approximate and does not take into account the constructive-plan drawing of the building, timely, complete, high-quality execution of technical service and repair, and the intensity of operation. for public production, it is not the average deadlines for the duration of the planning and construction (lifting) of the project that are significant, but the time spent on the production of one unit of production capacity (for example, in relation to brick factories-production of 1 thousand units per day), since these indicators are used in determining efficiency. references 1. mikulski k. postsosialisticheskoe obtshestvo: variant razvitia / / mirovaya economika i mezhdunarodnie otnosheniya, № 12, 2005 2. concept of the development strategy of the republic of uzbekistan until 2035. 3. kievsky l.v. razrabotka organizasionnix resheniy po sozdaniyu objetov stroitelstva i ix examination: problemi i podhodi // promishlennoe i grajdanskoe stroitelstvo. № 10, 1995. 4. krasovsky v.p. factor vremeni v planovoy ekonomike. m.: economics, 1978. 5. discussion of the introduction of a new step-by-step system for attracting foreign investment at the video projector meeting held on january 8, 2019, chaired by the president of our country. 6. k.i. ortikbaevich. attraction investment projects to the construction industry and improving their efficiency. 2021. saarj journal on banking & insurance research 10 (1), 47-53 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 99 www.americanjournal.org 7. n yusupdzhanova, i karimov. investment projects in the field of construction materials production..2020. theoretical & applied science, 18-21 8. inomjon ortikbaevich karimov. factors affecting the effectiveness of investision projects in construction enterprises. journal of new century innovations. №25. 2023/3/24. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 38 www.americanjournal.org financial technology in iraq: obstacles and requirements, regarding to selected international experiences hayder m. kareem alduhaidahawi1, hussein ali abed2, mustafa s. abdulreza3 1lecturer dr. hayder m. kareem alduhaidahawi, doctoral of financial management, department of finance and banking sciences, faculty of imam al-kadhum college (ikc), iraq, hayder.mo@alkadhum-col.edu.iq (corresponding author). 2ass. prof. hussein ali abed, financial management, department of finance and banking sciences, faculty of imam al-kadhum college (ikc), hussein84ali@alkadhum-col.edu.iq 3ass. prof. mustafa s. abdulreza al-furat al-awsat technical university/technical institute of al musaib, iraq, mustafasalam55@yahoo.com a b s t r a c t k e y w o r d s recently, the role of financial technologies has been growing in providing financial services and increasing the levels of financial inclusion and the total investment in this sector has increased. these technologies include many advanced solutions and innovations in the financial field that contribute to overcoming the challenges facing the expansion of the provision of financial services. these technologies are in line with the rapid development in commercial exchanges and the massive and rapid developments in the emergence and development of markets and the volume of inter-exchange. the research aims to clarify the most important obstacles and challenges facing financial technology in iraq and to compare the reality of these technologies with some arab countries. the research came out with a set of conclusions, the most important of which are: financial technology has become an economic necessity to keep pace with other economic developments, especially after the spread of electronic transactions significantly as a result of the development of innovations and applications on the mobile phone that perform financial purposes. financial technology and the shift towards financial digitization are factors in the development of systems and one of the foundations for keeping pace with global developments in the financial field. the research also recommended a set of recommendations, the most important of which is working to develop the infrastructure necessary for the development of financial technology, providing broad institutional support through the establishment of incubators and accelerators to help increase the emerging company in the field of financial technology. financial technology, financial innovations. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 39 www.americanjournal.org introduction new technologies play an increasingly important role in the financial services sector in facing important challenges. the information and communication technology revolution has made its presence felt in providing innovative financial services, the widespread and rapid spread of computer technologies related to internet services has led to the creation of financial services that keep pace with developments in all financial services facilities. financial technology is one of these innovations that aim to improve the quality of financial services. it works to reshape financial services (from payment systems to insurance services) based on the use of technology to improve financial activities by providing banking services and financial transactions over the phone and providing advice upon request. research problem: financial technology is an important reality to keep pace with global financial developments. iraq does not have the foundations and rules for developing the use of financial technology in banking and commercial currencies end that iraq must keep pace with these developments through the possibility of providing the requirements for that. research importance: the importance of the research stems from the fact that financial technology has become a reality that is used daily and is spreading and increasing, as it is linked to technical development, information, and communication, which has become an important reality today. it is involved in many financial transactions (banking and non-banking) via the phone or electronic applications associated with it. therefore, this research comes to identify the most important developments in the field of financial innovations that this sector enters. in addition to reviewing the most important obstacles that stand in the way of the development and spread of financial technology in iraq. research hypothesis: the research stems from the hypothesis that financial technology is an economic necessity for developing the financial system in iraq and keeping abreast of developments in the global financial system. iraq possesses the ingredients and qualifications that enable it to shift towards digitization in financial transactions, and work must be done to adopt the legal and technical mechanisms and the necessary infrastructure for that. research objectives: the research aims to: 1access to pioneering arab experiences in the field of financial technology. 2examine the reality of financial technology in iraq. 3explaining the most important obstacles and requirements for the success and spread of financial technology in iraq. 1. financial technology: a conceptual framework 1.1fintech the origin of word (fintech) is derived from the root of the two words (financial technology), which means the use of computer programs or other technologies to support financial and banking operations and services and to innovate new services (rau and röglinger, 2017,2). fintech is an innovation that aims to create services that compete with traditional services in their style (lin, 2015, 643). based on the use of technology to improve financial activities (schueffel, 2018, 3), financial and banking services american journal of business management, economics and banking volume 15 august, 2023 p a g e | 40 www.americanjournal.org through smartphones and tablets in all financial and banking operations. more specifically, working to innovate and improve the quality of financial services by proposing technical solutions according to different business situations (leong, 2018, 78), the use of cryptocurrencies in dealing and making them available to the public. many companies are working on modernizing technologies to enhance the financial services provided by traditional companies and transform them into technology-based companies (arner et al, 2015, 47). thus, the term technology has gained great importance for researchers, so it is necessary to know what financial matters can be managed through technology. the idea of atms was a revolutionary idea at the time and other services developed telephone systems on special computers with modems to access banking applications, with the expansion of the internet in the 1990s, banks developed outlets for online banking services for customers, in turn, mastercard introduced the latest technology for online purchases (nikkel, 2020, ). at the same time, fintech is growing rapidly, competing with different industries in producing services that are conducive to current developments, to give the ease of transferring services to consumers very quickly, as is the case in social networking programs and other programs that provide online services, such as (amazon wulan, 2017, (337). it will also be more attractive and influence the consumer, as these industries have grown exponentially in recent years. fintech was applied by financial service providers on international stock exchanges, which were determined by institutions specialized in the market and through legal frameworks established by the financial supervision authority, in addition to providing ways to ensure that customers receive services in online trading platforms (micu, 2016, 483). 1.2the financial technology revolution despite its late start, fintech is gaining traction in some countries in the middle east and north africa (imf, 2017) and is also emerging early in the caucasus and central asia. financial technology emerged in both regions to enhance financial inclusion (senyo & osabutey, 2020, 612), diversify economic activity, and inclusive growth through the financial innovations it provides as this helps to provide financial services to a large segment of the population that deals with the banking system (palmié et al. al., 2020, 492) it facilitates the availability of alternative financing sources for small and medium enterprises. fintech can also make a significant contribution to economic stability by using technology to ensure compliance with regulations and manage risks. electronic payment methods can also increase the efficiency of government operations. further reforms are needed to fill in the gaps in regulatory frameworks (walaza et al., 2014), consumer protection and information security, and for business background development, ict creation, and financial awareness (dhanavandan et al., 2012, 371), and the spread of global investment in financial technology in the past five years. forecasts indicate that it will continue to rise strongly, the value of investments in financial technology increased more than tenfold from 2008 to 2014, although the integration of organizations operating in the financial technology sector in the united states led to a decline in global investment in 2016. development continued in other regions, along with the middle east and north africa region, and prognosis showed a strong positive jump again in the first half of 2017 (kpmg, 2018; truong, 2016,754). 2. international experiences in financial technology developed and developing countries alike paid attention to recent financial developments and innovations, because of their active role in economic life and banking transactions. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 41 www.americanjournal.org the following are examples of arab countries that have adopted the development of financial technology, creating the appropriate environment for investments in this sector, and supporting incubators and emerging companies in the financial sector and financial innovations. 2.1the development of financial technology in egypt for the period 2017-2021 financial technology in egypt has witnessed great developments in the past few years. egypt has become a home for financial technology, which encourages new government regulation and stimulates companies to contribute to shaping a better environment for financial technology in egypt. egypt has witnessed the launch of various financial technology incentives and investment capital funds that focus on financial technology and various government initiatives in an attempt to address the various financial challenges facing individuals and companies in egypt. the government has taken various initiatives to encourage financial technology in the country, including launching the fintech egypt platform and converting the historic central bank of egypt building into a financial technology center. the egyptian government has also introduced a (regulatory sandbox) in the fintech field to allow startups and founders to test their fintech ideas in a controlled environment (information and decision support center, 2020, 1-2). the following are the most important developments in the field of financial technology. 2.2the development of the electronic card in egypt for the period 2017-2021 we can see through figure (1) a growth process in the field of electronic payment cards in the state of egypt over the last five years, which indicates that there is interest and interaction by individuals in acquiring this banking service and benefiting from it in settling payments instead of relying on cash currencies. consequently, financial technology has become a growing space in the desires of individuals to benefit from it, and this matter is of course beneficial to the local economy by benefiting from the local currency in financing medium-term investment projects, which enhances economic growth and thus is reflected in banking performance. the number of cards issued, according to the central bank of egypt report, has reached more than 52 million cards, and this number is likely to grow in the year 2022. figure (1) evolution of the number of electronic payment cards (in millions ( source: central bank of egypt, financial stability report 2020, arab republic of egypt, pg. 67. 2.3electronic wallets in a bank for the period 2017-2021 figure (2) indicates the size of the electronic wallets used by individuals, which are used in settling various cash payments, as well as making financial transfers between individual accounts in these wallets, which are applied through smartphones. therefore, it is also one of the innovations of 0 10000 20000 30000 40000 50000 60000 2017/2018 2018/2019 2019/2020 2020/2021 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 42 www.americanjournal.org technology that provided the advantage of the possibility of purchasing and transferring in any location without the need to carry money and at any time the owner of the wallet wants. one million wallets, according to the central bank of egypt report, with a growth rate of 26% compared to 2020. figure (2) e-wallets in egypt (in millions) source: central bank of egypt, financial stability report 2020, arab republic of egypt, pg. 67 3. the development of financial technology in the state of kuwait for the period 2017-2021 local banks in kuwait started providing digital banking services in 1998, and their spread increased since the middle of the first decade of this century. the corona pandemic led to an increase in the local demand for electronic banking services, and the central bank of kuwait is a strong supporter of the move towards digital transformation through the initiatives it launched, including:" experimental digital environment for modern financial technologies, kuwait national payment system, digital framework for (know your customer) procedure". moreover, within the framework of the central bank of kuwait's efforts to stimulate innovation and provide the best services to customers, a digital banking framework has been developed to organize and facilitate digital banking services. this new framework allows for the establishment of stand-alone digital banks according to three models, which are as follows (central bank of kuwait, 94-92, 2021): • digital banking unit: it is a digital banking business unit within an existing bank with which it shares the balance sheet, but under a different brand, and these units or digital windows are physically present locally. it is part of two initiatives, one of which targets the youth segment, and the other targets individuals who do not deal with banks. • banking as a service: it is a partnership (between a licensed bank and other participants) in the digital field, and it is like an agreement for outsourcing whereby the other party provides banking services to customers through the bank without the need to enter into lengthy and costly procedures, to obtain a license to open a bank, customers benefit from this type of bank by obtaining innovative financial services at lower costs. • a digital and independent bank: this point is a new addition to the local banking sector, as a fully independent digital bank was established without the need for a traditional entity before it. an independent digital bank usually operates under a general bank license and provides complete digital services that are mostly based on cloud systems. 7 .8 5 1 0 .7 1 3 .1 4 1 8 .4 2 3 .1 7 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 43 www.americanjournal.org 3.1paper and electronic transactions and electronic payments in kuwait figure (3), shows two forms, the first figure refers to the comparison between paper transactions and electronic transactions, as it is clear that there is a big difference in the volume of electronic transactions compared to paper transactions over the five years. this indicates that kuwait is moving towards a complete shift towards electronic dealing in all payment, purchase, and transfer operations, not promoting paper handling. as the central bank of kuwait report indicates that the year 2021 witnessed a significant increase in the available electronic payment methods, while the number of bank branches remained unchanged. this increase in electronic payment processes considered consumers' preference to use these immediate and easy means of payment processes, which indicates the process of digital transformation soon in general by consumers. thus, expanding digital automation operations and transforming all bank transactions into electronic transactions, with the help of financial technology. figure (3) paper transactions compared to electronic payments source: financial stability report, central bank of kuwait, kuwait, 2021, p. 88. as for the other form, which refers to the volume of electronic payment, it is very clear that it is much larger than the paper dealings resulting from cash withdrawals from atms, which have become traditional and non-modern services. financial technology has promoted the provision of an electronic payment mechanism through accounts and electronic wallets without the need for plastic cards. the second figure shows that there has been a growth over the five years, up to the fifth year, which witnessed a growth of 49% compared to other years, and electronic dealings accounted for 34%, this is according to the central bank of kuwait report. 3.2the infrastructure for electronic payments in kuwait figure (4) shows the nature of electronic transactions and the extent of the capacity of electronic points of sale compared to atms that represent paper transactions. we see that there is a significant growth in the point of sale side, and therefore we can say that there is a growing activity of financial technology in kuwait over the five years (subject of the study). the report of the central bank of kuwait indicates paper transactions electronic payments american journal of business management, economics and banking volume 15 august, 2023 p a g e | 44 www.americanjournal.org that transactions via the internet recorded a growth in 2021, reaching 43% of the total non-cash transactions. the growth rate of points of sale during the five years was very large, which confirms the process of shifting towards cashless payment operations and their dominance. figure (4) electronic payments in kuwait source: financial stability report, central bank of kuwait, kuwait, 2021, p. 90. 3.3digital services in the state of kuwait figure (5) shows the nature of the digital services provided in the state of kuwait, as we notice the rapid growth in it over the five years, which confirms that there is a desire among the public of dealers to benefit from the digital services provided by banks or other financial institutions. all this is to get rid of the traditional purchases that take place through paper money, as the central bank of kuwait indicates that the countries of the gulf cooperation council are accelerating to meet the basic requirements for the success of these services until the complete shift towards digitization in banking transactions. figure (5) digital services in kuwait source: financial stability report, central bank of kuwait, kuwait, 2021, p. 92. 0 10 20 30 40 50 60 70 80 90 2017 2018 2019 2020 2021 pos atm 750 1000 1300 1500 1700 500 1000 1500 2000 2500 2017 2018 2019 2020 2021total number of users in thousands american journal of business management, economics and banking volume 15 august, 2023 p a g e | 45 www.americanjournal.org 4. the reality of financial technology in iraq 4.1the reality of modern banking techniques in iraq the iraqi banking system differs from some neighboring arab and developing countries such as jordan, lebanon, kuwait...etc. the services of iraqi banks do not rise to the level of ambitions, as most banks have been established or expanded after 2003. the number of branches of these banks is not compatible with the population in the country, iraqi banks, whether governmental or private, mostly rely on traditional manual work such as paperwork in conducting their transactions until the beginning of 2017. it gradually began to introduce technology into its work, as it becomes clear to everyone that the iraqi banking system is one of the weakest banking systems in the middle east (iluba & phiri, 2021, 334). it is much lower than the banking systems of developed countries in terms of the technology used, the diversity of services, the number of customers, and the banking facilities provided to customers. likewise, the contribution of iraqi banks to support various economic activities, commercial/industrial/agricultural, as they contribute very weakly and do not reach the minimum level of ambition (gu & luiss, 2021, 436). however, iraqi banks need a fundamental improvement in terms of service quality (kou et al., 2021, 512). the quality of services provided to customers is not sufficient to create value and achieve a competitive advantage over its competitors. banks must be more innovative, fast, and dynamic. without stressing the essentials, banks should be more strategic in their decision-making, and develop better approaches to communicating with customers through information technology. according to (pant joshi, 2011, 322), the internet has become an integral part of human life, as its use has positively promoted the adoption of various banking solutions such as internet banking (liu et al., 2021, 467). iraqi banks sought to join the innovations and comply with the requirements of the central bank as the regulator of the banking sector. it updated the electronic payment instructions via mobile phone intending to organize and manage the business of payment services by phone. the iraqi environment wanted to adopt banking technology through social networks. banks are competing with each other through electronic banking services provided in the banking sector, customers are becoming smarter, and their preferences are changing day by day. this changing preference of customers makes it difficult for them to accept mediocre services rather than demand excellent services. customers are the main determinants of what will happen to service providers, which is why they are referred to as the king of the market. in this regard, banks seek to retain their customers by providing them with excellent services for achieving customer retention and loyalty (mukherjee, 2021, 595). information technology has become essential for business survival in the current era. however, banking technology has been recognized as one of the most important innovations in the banking industry and is developing at a rapid pace. by reshaping the banking industry by reducing costs, improving the quality of financial services, and creating a more diversified and stable financial landscape (salman, 2020, 436). banking technology eliminates traditional intermediaries while providing financial services (thakor, 2020, 284). recent global trends and the need for faster and costeffective access to banking services are the ultimate motivation for this research. moreover, developments in global trends have had an important and decisive impact on the global banking sector in recent years. banks face a challenge in terms of finding appropriate investments in banking technology to increase their competitive strength and meet the demand of new customers in different countries. it has become very difficult for businesses to thrive without information technology and it has become possible for managers to select relevant information without wasting time (hashem, 2021, 712). despite the state's approach to digital payment methods and the replacement of digital payment american journal of business management, economics and banking volume 15 august, 2023 p a g e | 46 www.americanjournal.org cards instead of cash payment, iraq still has a long way to go, and in this regard. we study this research in depth and define the environment and infrastructure of the banking system in iraq, as it aims to adopt banking technology for the transformation of traditional banking in iraq into a modern system. this can significantly improve the quality of banking services and help achieve and promote the idea of proper financial inclusion, offering a competitive advantage. thus, we can enable these sectors to compete with other advanced sectors. 4.2automated teller machines: figure (6) shows the number of atms in some countries of the arab world, so we notice that there is a clear discrepancy between the arab gulf countries and other countries. this matter is due to the number of machines used in these countries, which confirms that individuals in the gulf countries prefer electronic means to traditional means in settling payments, and we note that iraq is among the last countries in the above figure. the central bank indicated that iraqi banks should seek to increase the number of machines to enable individuals to use this technology and benefit from financial technology with its various inventions. increasing the number of machines contributes to increasing financial inclusion. figure (6) automated teller machines per 100,000 adults in 2019-2020 source: world bank, available at https://data.albankaldawli.org/indicator/fb.atm.totl.p5?view=cha 4.3electronic payment services figure (7) indicates the prevalence of electronic payment services in iraq to the population. each electronic payment device corresponds to 100,000 people, as we note that the number of atms is still low. the reason for this is due to the adoption of cash dealing in purchases and the preference of individuals for direct cash dealing, the central bank of iraq indicates the reason for this decline to the weak banking culture among the customers because there is fear on the part of individuals in dealing with this service. the iraqi banking system did not encourage commercial centers to open accounts so that individuals could buy from these centers through plastic cards, adding to the weakness of the spread of atms in various places and their presence in banks only, which makes it difficult for individuals to access the machines for cash withdrawal. however, what we notice is that there is an increase in poc devices, i.e. electronic payment service devices, and this is a good sign, meaning that there is a tendency by individuals to accept these services and benefit from them in purchases, whether internal or external. 81.07 73.3 60.9 28.5 26.1 9.6 4.2 -20 0 20 40 60 80 100 kuwait saudi arabia uae morocco jordan algeria iraq % https://data.albankaldawli.org/indicator/fb.atm.totl.p5?view=cha american journal of business management, economics and banking volume 15 august, 2023 p a g e | 47 www.americanjournal.org figure (7) the prevalence of electronic payment services for the population of iraq source: central bank of iraq, financial stability report for the year 2021, p. 147. 4.4amounts transferred from mobile payment companies figure (8) percentage of amounts transferred from mobile payment companies source: central bank of iraq, financial stability report for the year 2021, p. 149. figure (8) indicates the percentage of the amounts transferred through the electronic wallets of the telecom companies operating in iraq, which are called (zain cash, asia hawala). which enables its users to transfer funds between other wallets to other subscribers and the possibility of paying financial dues to individuals arising from electronic purchases. these wallets also allow the deposit and withdrawal of funds between different wallets, but the transfer process is limited within the country and does not exceed outside it. these companies are preparing to make the limits of this service reach outside the borders of iraq in the 2023 plan. according to the report of the central bank of iraq, it indicates the control of zain in financial transfer operations and the preparation of money portfolios, compared to asiacell. it noted that these portfolios have been growing continuously over the past four years, which indicates that there is a need and desire for this service by individuals and that it meets their need for purchases and financial transfers. it also strengthens the banking system on the other hand, and this is one of the innovations of financial technology. table (1) shows a comparison between the research sample countries to show the size of the digital divide in banking transactions and the use of financial technology in the financial transactions of individuals and banks. 1 .8 2 .3 2 .6 2 .9 3 .8 2 .5 5 .8 5 .7 9 .8 2 0 .2 1 3 .8 1 7 .3 1 9 .7 3 2 .2 3 5 .7 0 5 10 15 20 25 30 35 40 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 atm pos poc 53.6 26.2 30.7 18 46.4 73.8 69.3 78.7 0 0 0.03 3.2 0 50 100 2018 2019 2020 2021 transferred amounts from asia hawala company american journal of business management, economics and banking volume 15 august, 2023 p a g e | 48 www.americanjournal.org table (1) the volume of services provided by the countries under study for the period (2017-2020 ( egypt type of service by country 2017 2018 2019 2020 2021 time period 30362 32077 39609 52366 the electronic card 7.85 10.7 13.14 18.4 23.17 e-wallets kuwait 1.25 1.5 1.5 1.25 1.5 atms 55 65 73 78 84 point of sale devices 750 1000 1300 1500 1700 digital services iraq 11.7 15.1 26.6 29.5 33.5 poc 2.1 5 5.1 8.9 19 pos 11.7 15.1 26.6 29.5 33.5 atm 46.4 73.8 69.3 78.7 zain cash 53.6 26.2 30.7 18 asia hawala source: prepared by the researchers based on the annual releases issued by the central banks of the countries in question. we note from the above table, which shows the volume of services provided by the countries under study for the period (2017-2020): electronic financial services in the state of egypt are increasing and growing, this indicates that there is a development because of the plan developed by the central bank of egypt. there is also a high demand among citizens to use electronic wallets and electronic cards. they are enhanced steps to shift towards digital transactions. in kuwait, the indicative indicators shown in the table are also increasing, especially in digital services. it also noted that there is an increase in the number of automated teller machines and electronic points of sale, which enhances the use of electronic money and electronic banking transactions. also in iraq, it noted from the table that there is a noticeable increase in the indicators mentioned in it, especially after the initiative of communication companies (zain, asia) to establish financial portfolios and electronic transfer mechanisms. which facilitated electronic financial transactions and electronic payments. 5. obstacles and requirements for financial technology applications in iraq almost all arab countries share a set of obstacles and challenges in the use of financial technology in the arab world. among the most prominent challenges and obstacles that impede the spread and expansion of emerging companies in the field of technology in the arab world in general are: (al-yafei, https://fatora.io/blog/electronic-payment-in-iraq/ ): • the poor business environment and the restrictions that are still imposed on the entry of foreign entities into the local markets. it limits the access of existing global financial technology companies to these markets. • the difficulty of gaining customer trust due to fear of fraud in the absence of adequate consumer protection frameworks in the field of financial services and no data privacy laws. in addition to the https://fatora.io/blog/electronic-payment-in-iraq/ american journal of business management, economics and banking volume 15 august, 2023 p a g e | 49 www.americanjournal.org absence of legislation on cybercrime and information security except in seven countries in the region (egypt, algeria, morocco, qatar, tunisia, and the united arab emirates). • the low quality of internet service and mobile phones and their prices, despite the high penetration rates of information and communication technology in recent years. the middle east and north africa region witnessed the second highest rates of internet penetration in the world between 2014-2018, at a rate of 21%. despite this widespread in the arab world, its quality varies from one country to another, and this is what led to a difference in the speed of the spread of financial technology in some arab countries. • the weakness of the competitiveness of emerging companies in the field of financial technology if they do not adopt a business model based on cooperation with traditional banks. as a result of customers' trust and loyalty to the latter, the failure rate of startups in financial technology in the middle east and north africa region reached 28%. • institutional support is still limited, as a few arab countries have established incubators (egypt, lebanon, united arab emirates) to help increase startups or establishing regulatory labs (abu dhabi, bahrain, and saudi arabia) that allow fintech companies and traditional institutions to test innovations in the real world. • the laws imposed on financial technology have hindered the development of this field in the arab world, due to the strictness of laws and the absence of the state's will to develop this field. on the other hand, it was able to improve the legal framework for the use of financial technology in the united arab emirates these constraints are themselves reflected in the environment of the iraqi economy, as the matter is not much different in iraq. as the electronic payment system in iraq is lagging behind the same system in the gulf countries, for example, because iraq does not possess advanced technology in the field of the internet and communications, in addition to the fact that the iraqi economy is still suffering from difficult crises that prevent it from progressing. the electronic payment services in iraq are still weak and timid, given the capabilities and qualifications available in the country. however, the iraqi government has sought through several policies to reduce dealing in securities and gradually shift to a digital payment system for money. statistics from the central bank of iraq indicate that the number of electronic payment companies in iraq reached 16 companies in 2022, statistics also indicate that these digital services are used by about 6 million iraqi employees and retirees. there are significant structural, institutional, and policy obstacles facing the growth of financial technology in iraq: (regional economic outlook, 2-4, 2017) (al-yafei, https://fatora.io/blog/electronic-payment-in-iraq/ ): • poor business environment in general, there were only four countries (armenia, georgia, kazakhstan, and the united arab emirates) in the top quartile in the doing business index prepared by the world bank, restrictions on market entry for foreign entities continue to limit the possibility of existing global financial technology companies entering the market. • the scarcity of private equity and venture capital, which underpinned the growth of financial technology in advanced economies. • legal uncertainty due to regulatory gaps hinders the growth of this sector, as well as the lack of electronic security, as there are no consumer protection frameworks in the field of financial services, nor data privacy laws, the prudential regulations not tailored to the characteristics of financial technology. iraq is considered one of the countries in which there is insufficient electronic security, it suffers from a clear security and information breach. therefore, the data of iraqi customers in banks is highly vulnerable to theft, as happened in 2017 because of the hacking of an iraqi telecommunications company. https://fatora.io/blog/electronic-payment-in-iraq/ american journal of business management, economics and banking volume 15 august, 2023 p a g e | 50 www.americanjournal.org • restrictions on shipping and delivery services: in fact, there are no shipping companies or offices in iraq that can absorb the huge amount of resources that could flow if the e-commerce system was activated. this is due to the restrictions imposed on the iraqi economic system, which prevents many materials from entering the market. • the "trust gap" and levels of financial awareness constitute major constraints for start-up companies in the field of financial technology. the population's culture and experience with the advantages of electronic payment in iraq are almost non-existent since iraqis depend largely on traditional payment systems in all aspects of their lives. they also do not trust digital payment for fear of fraud and fraud that takes place through it, and it has been shown that trust is one of the main obstacles in addition to promotion and the educational level of the customer, the "trust gap" was also cited as one of the main drivers for increased cooperation on a larger scale between fintech start-ups and banks. • weak qualifications and infrastructure: iraq does not have a strong and suitable platform from which to spread e-commerce and transform into a digital economy in which securities disappear completely. in addition, the communication networks and the internet are very weak and cannot withstand all the pressure that the digital payment system can impose. • broad institutional support is still limited. very few countries have set up incubators and accelerators to help grow start-ups or create regulatory labs that allow traditional fintech firms to test innovations in the real world. • the penetration rates of information and communication technology have increased significantly in recent years, but the quality of internet service and mobile phones and their prices are still obstacles to the adoption of financial technology. internet service has reached all countries, including iraq, but highspeed internet service is limited and expensive, which stands as an obstacle to the widespread use of financial technology. on the other hand, electronic attacks lead to (operational disruptions, financial losses, reputational damage, and systemic risks). it may become an impeding constraint unless work is done to strengthen the frameworks of information security. although the electronic risk is not a case unique to financial technology, the expansion of connectivity through digital solutions has led to an increase in the access points of electronic hackers. in addition, although only a few cyber-attacks on financial institutions succeeded in the middle east, north africa, afghanistan, pakistan, the caucasus, and central asia, reports indicate an increase in the number of attacks on banks in the region. with the rapid development and complexity of the nature of electronic crimes, at the same time, the preparations for confronting the electronic threat, in general, are still weak in many countries. reports have indicated that there is no legislation on cybercrime and information security, except in some countries in the middle east and north africa. 6. conclusions and recommendations: 1financial technology has become an economic necessity to keep pace with other economic developments, especially after the widespread spread of electronic transactions, and as a result of the development of innovations and applications on the mobile phone that serve financial purposes. 2the arab countries have taken the development of their financial systems under the techniques of financial technology, and have made great strides in this field, by investing in this technology and providing the infrastructure to keep pace with financial developments. 3iraq has not achieved tangible development in the field of financial technology, and this is evident through the low indicators compared to the arab countries and the world, as there is no capital willing to take risks and invest in this field. in addition to the lack of the necessary infrastructure for the development of this technology, making this technology ineffective in the daily financial transactions of the citizen. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 51 www.americanjournal.org 4weak banking culture among the masses of customers, because there is fear on the part of individuals in dealing with this service, and the iraqi banking system did not encourage commercial centers to open accounts so that individuals could buy from these centers through plastic cards. in addition, the weakness of the spread of atms in various places and their presence in banks only, makes it difficult for individuals to access the machines for cash withdrawal. second: recommendations 1work on developing the necessary infrastructure for the development of financial technology, and provide broad institutional support through the establishment of incubators and accelerators to help increase the emerging company in the field of financial technology. 2raising awareness levels in society to increase the demand for financial technology services, as the availability of trust and the reduction of uncertainty is one of the important factors for using financial technology as a payment channel, as well as the availability of channels to promote this type of service. 3work to develop legislation and legal regulations that facilitate the work of digital financial services, which must be balanced with monitoring and follow-up to reduce money laundering or illegal financing operations. sources: 1. saida harfoush, (2019) financial technology is a promising industry in the arab world, scientific horizons magazine, volume 11, issue 3. 2. the central bank of jordan, (2020) department of supervision and control of the national payments system. 3. sima mohsen allawi, (2020) the impact of virtual currencies on monetary policy and the central bank, journal of the university college of economic sciences of baghdad the special issue of the scientific conference of the department of accounting sciences, college of administration and 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(2011). financial inclusion & financial literacy. bi oecd seminar – roundtable on the updates on financial education and inclusion programmes in india. 28. salman, m. d. (2020). the development of the banking sector s contribution to the iraqi economy : subject review. ishtar journal of economics and business studies. 29. schueffel, p. mname. (2018). taming the beast: a scientific definition of fintech. ssrn electronic journal, april. https://doi.org/10.2139/ssrn.3097312 30. senyo, p. k., & osabutey, e. l. c. (2020). unearthing antecedents to financial inclusion through fintech innovations. technovation, 98(march), 102155. https://doi.org/10.1016/j.technovation.2020.102155 31. thakor, a. v. (2020). fintech and banking: what do we know? journal of financial intermediation, 41(july). https://doi.org/10.1016/j.jfi.2019.100833 32. truong, o. (2016). how the fintech industry is changing the world. november. http://www.theseus.fi/bitstream/handle/10024/123633/truong_oanh.pdf?sequence=1 33. walaza, m., loock, m., & kritzinger, e. (2014). a framework to integrate ict security awareness into the south african schooling system. acm international conference proceeding series, 28septemb. https://doi.org/10.1145/2664591.2664596 34. wulan, v. r. (2017). financial technology (fintech) is a new transaction in the future. journal electrical engineering and computer sciences, 2(1). american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 12 www.americanjournal.org the role of process re-engineering in rationalizing costs and strengthening the competitive position of industrial entities-applied research in karbala cement factory mohammed abed kadhim(1) yshsgy@gmail.com ali mohammed thijeel al-mamouri(2) asst.prof.ali@pgiafs.uobaghdad.edu.iq the post graduate institute of accounting and financial studies accounting studies departmentuniversity of baghdadiraq(1,2) a b s t r a c t k e y w o r d s in its theoretical framework, the research adopted the topic of process re-engineering and its related aspects, such as aspects of its concept, elements, importance, and stages of application, in addition to presenting the relationship between re-engineering and information technology, as well as the use of information technology in the field of industry. while the field frame of the study dealt with a presentation of the reality of cement factories in iraq, and the extent of their need to bring about radical and comprehensive changes in all aspects of their work in order to keep pace with the developments and developments taking place in the iraqi and international environments. the problem of the study focused on the ability of iraqi bank administrations to understand and assimilate the process of reengineering and its requirements as one of the most important strategies that must be adopted to meet the challenges and keep abreast of recent developments in the cement industry and modern information technology to rationalize its costs and enhance its competitive position. process re-engineering, rationalizing costs , competitive position introduction the dynamic changes taking place in the business environment, most notably the intensity of competition, the advancement of technology, the short life cycle of the product, and others have made the traditional administrative techniques of cost and administrative accounting incapable in light of these changes in providing information that helps economic entities achieve the goal of cost management by rationalizing them as well as supporting economic entities in the production of products with competitive prices that meet the needs and desires of customers. therefore, it has become american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 13 www.americanjournal.org necessary for these entities to follow the process re-engineering technology to keep pace with the above changes and respond to them, which is one of the most important of these modern technologies in their applications through which the economic entity can rationalize its costs and thus strengthen its competitive position. the process re-engineering approach would help the karbala cement factory of the iraqi general cement company in managing costs by rationalizing them and thus achieving a competitive position for the plant. the first axis: research methodology and previous studies first: the research methodology research problem: the process of re-engineering the industrial activities of the iraqi cement factory is one of the requirements of the current stage in the life of the cement industry in iraq, as the factories should prepare it at the forefront of the strategies that they must adopt to face challenges and threats and keep abreast of developments in the field of cement industry and technology. in the ability of the factory departments to understand and comprehend the concept of re-engineering, its requirements, stages and its impact on the performance of its activities, and thus it can be said that the problem of the study crystallizes in the light of the negatives and challenges facing the iraqi cement industry currently, and that the control of traditional industrial business over the activity of the cement industry, and as a result of the inflexibility of banking laws and legislation on the one hand, and not adopting policies to introduce modern changes based on modern technologies in the cement industry and not adopting modern cost strategies such as continuous improvement, comprehensive quality management, benchmarking and re-engineering of processes approved by cement industry factories in developed countries on the other hand. through the above, the main problem of the research can be identified (negligence and laziness of the industrial entities to seriously and deliberately rethink their operations and re-engineer them radically and fundamentally to develop their products, keep pace with innovation and renewal in the products of competing companies, sustain competitive advantages and rationalize their costs). research objectives this research aims at a number of objectives that can be summarized in the following points: 1identifying the obstacles and problems that impede the application of the process re-engineering approach in the cement industry, and suggesting appropriate ways to encourage and support its use in the industrial sector. 2shedding light on some experiences and expertise in the field of process re-engineering in the cement industry that enables them to rationalize the costs of their outputs, which gives them competitive capabilities and advantages. 3presenting some results and recommendations to those in charge of managing the cement industry in iraq, which gives vision and ideas on the areas of application of process re-engineering to achieve a competitive advantage in cement factories and to develop perceptions in future plans. research hypothesis the research is based on a main hypothesis: (the application of process re-engineering leads to the rationalization of costs for economic entities and the consolidation of their competitive position). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 14 www.americanjournal.org the importance of research the importance of the research is evident in the following points: 1contribute with the help of economic entities (the research sample) to use modern technologies for management, and give a clear idea about each method of process re-engineering. 2it contributes to increasing the level of senior management's awareness of the importance of adopting the field of process re-engineering in order to improve the performance of iraqi economic entities that lead to customer satisfaction and thus achieve a competitive advantage over its competitors. 3this research, through its practical application, can provide solutions to the problems that cement industry factories suffer from, especially in how to develop and design their products, as well as provide indicators that help adopt the process engineering approach by specialists to be able to achieve change and raise the quality of their products. and rationalize its costs. research methodology 1the inductive approach: by relying on studying and analyzing previous theoretical and applied studies related to the subject of research, as well as research and articles published on the world wide web (internet), with the aim of forming the theoretical framework. 2-the analytical descriptive approach: by applying the process re-engineering approach to rationalize costs and achieve a sustainable competitive advantage on a cement manufacturing plant by analyzing the results from this application. second: previous studies • dhaidan, 2022) the role of integration of costing techniques based on specifications and process re-engineering in improving product quality. search seeks analyzing the complementary relationship between cost-based technology and process re-engineering technology in improving product quality. -clarify the role of using cost technology based on specifications in integration with process reengineering technology to improve product quality. conducting the process of applying integration between cost technology based on specifications and process re-engineering technology in the iraqi industrial economic entity, the research sample? the most important conclusions process re-engineering technology focuses on bringing about a radical change in operations in order to achieve fundamental and radical improvements in performance standards represented in quality, cost, speed, and service. the application of process re-engineering technology is carried out through specific steps starting from defining the vision and objectives of the company, understanding and defining the processes that will be re-engineered, establishing a re-engineering team, defining and identifying customers, defining customer requirements, understanding the current process, designing the new process, passing implementation and follow-up. the most important recommendations the need for the economic entity to study the research sample. paying attention to studying the market, searching for new marketing outlets, and continuous communication with customers, in order to know american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 15 www.americanjournal.org the specifications they require, which achieve the desired value from the customer’s point of view, in order to improve the quality of its products in balance with foreign products, which leads to its survival and continuity in the world. intense competition. focusing on the customer to determine the specifications that the customer desires and what each specification represents of importance to the customer to control its costs and avoid any waste or extravagance in cost. • sungau & ndunguru, 2015 "business process re-engineering: a panacea forb reducing operational cost in service organizations" process re-engineering is a comprehensive solution to reduce operational costs in service organizations (applied research) objectives of the study evaluation and effects of process re-engineering technology on operational cost, and its statement, directly or indirectly, as a treatment for reduction. the most important conclusions the technology of process re-engineering does not have a significant direct impact on the operational cost, however it has indirect effects on operating costs, and re-engineering works to improve the firstlevel structures, quality of service, and speed of delivery, which in turn affects the second-level structure of operating cost and it was found that there is a discrepancy between the current research and the other reported research, due to the reason that the current research refers to the overall effect of re-engineering in establishing operating costs, while other research provided effects in specific elements of operating cost creation. the most important recommendations process re-engineering enables service economic entities to reduce paperwork, reduce rework costs, and reduce the number of employees in operations. the second axis: the theoretical side the term re-engineering operations means starting over with the modern administrative style, which is related to the operations and work performed by the economic entities. . (haroush, 2015: 318), some researchers do not consider process re-engineering a tool, technology, or approach, but rather a philosophy of change that is represented in responding to the rapid dynamic changes in the surrounding environment that prompted economic entities to adopt this philosophy in order to make the best use of investments in technology (al-mamouri; al-dhaheri, 29:2020), and adapting its operations to meet the challenges and continue in the modern business environment. (al-awadi, 2014: 14), and the types can be detailed in other forms, including (administrative operations, executive operations, and support operations) (al-agha, 2006: 35), to avoid the isolation of the economic entity from its competitors, and to pursue seriousness to ensure its continuity and competitiveness. economic and effectiveness for individuals and institutions concerned with the implementation of procedures and development programs, the increase in growth rates in the various fields of production through which the individual income rate increases and the relationship and feedback between inputs and outputs are stimulated ,( ali, abd , & kareem , 2022). recently, the interest in process re-engineering has increased on the part of decision makers from senior management in economic entities , and the identification of process re-engineering is an appropriate entry point towards studying and establishing the appropriate specific scientific perceptions of the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 16 www.americanjournal.org concepts and opinions it presents, and in view of what characterizes the concept of process reengineering. on a set of concepts, including: 1using tools and means to take advantage of modern technology to reach the best possible combination of these tools and means to reach a radical change in all parts of the economic entities in order to meet the needs of customers. (parker, 1993:29). 2-the method of realization, improvement and radical and comprehensive development in the performance of economic entities in a relatively short time. (paul; cespedes, 1995: 36). 3a radical and comprehensive redesign of the planning processes to raise their surplus value, and redesign the policies, systems, and organizational structures that support the processes of improving workflow, producing the economic entity, achieving the planning goals and objectives, and meeting the needs of customers. (fragoso, 2015: 383). operations re-engineering has been defined as a set of techniques aimed at re-engineering operations for all operations in economic entities by redesigning them in a way that achieves effective performance and based on different technologies that seek to achieve goals. (dhaidan, 54: 2022), and is characterized as an effective program to implement a strategic turning point through re-engineering operations with the aim of achieving significant gains in service, cost, and time. (wheelen; hunger, 2012: 288). the referential extrapolation of the concepts of process reengineering indicates that there are basic components to this concept according to a general and comprehensive view presented by many researchers, including: (drury, 2018: 603), (al-jazrawi, 2000: 10), (al-barwari, 2000: 46), ( kenneth, 2018: 17). • fundamental re-thinking: (horngren, 2015: 475 ) rethinking is being conducted by reconsidering the foundations and assumptions that determine the methods of work used, and that information technology capabilities are given preference (thijeel, 2018: 1576), and it should support the re-engineering of operations by providing a conductive environment to work on, and simplifying the changes that are being promoted. (sungau, 2015: 146). • radical re-design the radical expression of the word (radical) is derived from the latin word (radix) and means roots (al-hammadi, 2006:124), and bringing about a radical change, not a specific modification (shamrukh, 2022:124), and is characterized as a process of getting rid of previous procedures, and adopting new methods to perform the work, that is, it is the radical change, not the minor changes (hamer, champ, 1993: 33), in order to bring about positive changes in the economic entities , which makes them more capable of solving problems, and providing products and services efficiently and effectively. (abu alnasr, 2002: 10). • change focuses on operations (process change): operations re-engineering focuses on analyzing and rebuilding operations, not organizational structures, departmental tasks, responsibilities, and functions in the economic entity. al-badawi, 2017: 51) (al-saeed, 2012: 236). • change depends on information technology: it relies on process re-engineering to invest in the use of modern technologies, and the use of these technologies in an effective and efficient manner leads to the implementation of work in a creative manner (ibrahim, 2014: 240), and re-engineering attempts depend operations use the rapid developments in information technology and its various applications, as the use of personal computers, networks, and databases helps to facilitate the performance of operations, and thus reduce performance time and cost, as well as increase productivity, develop, and improve quality and conformity (thijeel, 2018: 570), so it is necessary to identify opportunities for american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 17 www.americanjournal.org improvement in new processes, as well as familiarity with recent developments in information technology, from investing economic entities in information technology effectively that may lead to improving performance levels in the case of adopting re-engineering of operations based on information technology. (kiran, 2016: 40). the applied aspect .cement industry, its stages and manufacturing methods cement is the material that possesses cohesive and adhesive properties in the presence of water, which makes it able to bind the concrete components together, and their cohesion with the reinforcing steel and transform them into a complete interconnected entity, and it has the property of setting and hardening by chemical reactions. in the presence of water, it is known as hydraulic cement, as cement is made by mixing calcareous materials such as limestone or chalk limestone with clay materials such as shale or clay. limestone crushing : limestone is broken by the crusher, and the crushed stone is transferred to the line field, as it leads to the collection of limestone in a field for mixing and storage, and materials are withdrawn in the required proportion from this field. raw mill :the mill crushes and softens the materials with huge mechanical equipment, and grinds them into pebbles with a diameter of (10-50 mm). mixing silos :the conveying of the ground materials from the grinding system to the mixing tanks for mixing and homogenizing operations. burning furnace :the process of burning materials after grinding and mixing them in cement kilns is the basic manufacturing step in this industry to produce clinker. clinker cooling: the process of cooling the clinker does not differ in the types of cement. air cooling is used, except for the type of white cement. the process of cooling is water (water cooling). there are no emissions at this point. clinker storage : storing the clinker after cooling it in huge concrete tanks, and this requires the existence of a filter with a suitable bag quality to withstand the heat and humidity to work to remove any emission during the casting operations on a deviation as well as the soft materials resulting from the process of drawing the clinker to the cement stage. the quality of the filters should be monitored, and ensured her job. cement mill : the clinker is grinded after increasing the percentage (3-5%) of gypsum (calcium sulfate) in order to control the initial setting time and cement solidification reactions, as it is ground to high fineness, which calls for providing the cement grinding entity with a filter system that works to capture fine cement and raw materials. soft materials such as clinker and gypsum are removed during drawing and transport operations, as these soft materials are transformed on the product line. cement packing : it is the last stage in cement production, and it includes tanks, filling in bags and filling cement tanks using the bulk cement method. it can be summarized in figure (1) below: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 18 www.americanjournal.org the methods used for the cement industry :there are two basic methods in the cement industry that can be followed, and its required steps applied to achieve the required physical and chemical transformations, as they differ among themselves in equipment design, operating method and fuel consumption: the wet process: after preparing the raw materials (cracking, crushing, grinding), the clay materials are usually mixed with a certain percentage of water to become a homogeneous mixture, then they are mixed with the calcareous materials prepared inside the washing mills and the wet grinding method is used to form a mixture in the form of a paste called (slurry) and contains a percentage of high humidity ranges between (30-45)%, and the length of the kiln reaches (230) meters, and its diameter is (5-7) meters, with a slope of (3%). the clay is fed directly to the kiln, or to a dryer first, as it is dried in the drying range is due to the hot gases coming out of the oven, and the evaporation of the dough water is accompanied by an increase in its viscosity, as the dough undergoes physical changes only to turn into a semi-circular mass of different sizes with an increase in heating, then it completes later the other stages of production. this method, used in the past, is characterized by easy technology, no need for certain technical skills, as well as high homogeneity of raw materials compared to other methods, low rates of dust thrown into the outside environment, and one of its disadvantages is high fuel consumption. dry process : in this method, the raw materials are prepared (cracking, crushing, grinding), and then they are mixed and homogenized in mills while they are in their dry state without adding water to them. then they are kept in closed tanks and sent to feed the rotary kiln, as the length of the kiln reaches 70 meters. the efficiency of the kiln is greater in the case of heating the raw meal before entering it into the kiln. this method is more advanced than the wet method, and it is commonly used in modern cement industry technologies. it is balanced with the wet method with less fuel consumption, and one of its disadvantages is the high rates of dust thrown into the outer environment. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 19 www.americanjournal.org decisions to rationalize costs by switching from the wet method to the dry method. conversion from the wet method to the dry method, the use of multi-stage pre-heaters, the use of electric motors, and high-efficiency mills contributed to achieving savings in the consumption of thermal energy and electrical energy required for the cement industry. the following is a review of the most common energy efficiency improvement measures in this industry: 1the use of highly efficient electric motors, especially motors that operate for more than (3500) hours annually, as well as the use of drive units (for fans) with variable speed, which help reduce the motor speed by controlling the frequency, voltage, or current of the motor. 2developing technologies for grinding raw materials and grinding cement, by using the cylindrical grinding system and integrating it with the traditional grinding system, as well as using highly efficient dynamic separators, which contributes to achieving a tangible reduction in the consumption of electrical energy. 3the use of auxiliary materials for the grinding process such as (mono ethylene glycol) to reduce the density of the materials that need to be grinded, and increase the conductivity, and then reduce the specific energy consumption. 4improving combustion efficiency by using advanced burners, and using modern electric motors of high efficiency. 5improving energy efficiency in auxiliary systems, such as steam boilers, thermal insulation, and lighting systems. .apply process re-engineering to industrial entities the steps of applying process re-engineering to the karbala cement factory go through several stages: . determine the vision and plan that the research sample seeks it is clear from the field observation of the researcher in the iraqi general company for cement (karbala cement factory), the research sample, and the interviews with its officials that the most important thing that the factory seeks to achieve from a planning vision is to produce a product (cement) of all kinds that meets the requirements of consumers and in a way that achieves an important competitive position. and improve the value of its products by rationalizing their costs. .formation of a multidisciplinary re-engineering team after defining and clarifying the planning vision for the plant, a specialized re-engineering team is formed, which includes several specializations (design, technology, production, management accountant and assignment, research and development). determine consumer requirements. at this stage, the consumer requirements that should be met in the cement product of all kinds in terms of quality are determined, and they represent the essence of the tasks of the re-engineering team that should be taken into account. the basic requirements sought by the consumer, especially (contractors) who are considered among the most important consumers of the company's products (cement of all kinds) in the availability of its products, which are almost limited to both the appropriate price and high quality. quality is measured by conducting laboratory tests, and when it fails, it leads to damages. contractors, refusing the works executed by them, or accepting them with financial discounts, exposing them to contractual responsibility, and thus harming the reputation of the products of the cement factories. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 20 www.americanjournal.org .planning the re-engineering process after determining the requirements of customers, and the appropriate manufacturing method, and in the light of those requirements, the process of planning for re-engineering related to the cement product begins, including the various activities involved in these operations, and restructuring, organizing, and arranging them in a manner that is consistent with manufacturing operations, and achieving this purpose by applying the disjointed analysis technique in light of the adoption of re-engineering, which in turn focuses on cost rationalization. .implementation of the re-engineering approach at this stage, the re-engineering approach is put into practice, and all the aforementioned steps are reviewed to ensure their compatibility with the factory’s objectives, the most important of which is rationalizing its costs and achieving a competitive advantage by increasing product quality, matching its specifications to the customer’s desires, and reaching the lowest cost. with regard to quality, as long as there is a proper match between the customer's voice, which is expressed in its requirements, and the engineering requirements and manufacturing processes that contribute to production, including activities that increase value for the customer, the required increase has been achieved. as for the cost, as long as practical energy is relied upon when applying disjointed analysis technology as a basis for allocating costs related to manufacturing operations and activities, with the exclusion of costs that do not increase the value of the product, the required rationalization has taken place. this has led to customer satisfaction with the product, and it is possible to start putting the stages of re-engineering technology into practice. and the application of process re-engineering leads to the exploitation of its energies. the table below shows the percentages of energy utilization for the activities and activities producing cement in the years (2008-2009) table no. (14) energy utilization ratios for cement after re-engineering before re-engineering 2019 2018 2009 2008 the years 2000 2000 2000 2000 design capacity (1) thousand tons 1800 1800 520 400 the planned capacity is (2) thousand tons 1648 1607 215,9 244,7 actual production (3) thousand tons 90 90 26 20 operating ratio (2/1) 91,5 89,3 41,5 61.1 execution rate (3/2) 82,4 80,4 10,8 12,2 utilization ratio (3/1) source: it was calculated by the researcher based on the reports of the research and development department. from the above table, the following is clear: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 21 www.americanjournal.org 1a significant increase in the utilization of the design capacity of the plant was noted, as it reached (82.4%) for the year 2019 (after re-engineering), parallel to the year 2009, which reached the utilization rate (10.8%), which indicates the achievement of the desired purpose. among them, the realization of a remarkable increase in the production capacity, which also led to an increase in the employment rate from (26%) to (90%). 2exploiting the plant’s resources effectively and efficiently, as the planned percentage reached (90%) of the design capacity for the years (2018, 2019), which is the highest planned capacity for production from the designed capacity, parallel to the years before re-engineering, which reached the highest percentage in the year 2009, as it amounted to (26%) of the design capacity, while the implementation rate amounted to (91%), which indicates an improvement in the production capacities of the factory, and the exploitation of its energy with the highest possible efficiency, and regular industrial production without obstacles or difficulties in all stages of production. 3the presence of idle capacity (unutilized) amounting to (1784.1) thousand tons, at a rate of (89.2%) for the year / 2009 of the designed capacity for the production of the factory, which indicates the poor performance of the factory, and the lack of efficient and effective use of its resources to produce and develop its products to meet the needs consumers, and this was a motive for the higher management to re-engineer by giving an investment opportunity to operate the plant and to conduct an in-depth study to develop production lines, meet the desires of customers, and then increase energy utilization rates. conclusions 1the fierce competition witnessed by the contemporary industrial environment and the rapid developments have made the economic entities carry out their work in a competitive environment directed by the customer. thus, it is better for them to achieve the extra value from him if they want to survive and maintain their competitive position in the light of this. the environment. 2re-engineering technology represents all practices, procedures and activities that contribute to increasing or maintaining the adequacy and effectiveness of the production equipment of the economic entities , in a way that contributes to achieving the objectives of the economic entity, which are linked to the lowest cost and high quality. therefore, it is important in all production stages, which start from the design stage right up to the final products. 3the use of re-engineering technology before the economic entities leads to an increase in the quality of the product, a reduction in its costs by making a radical change, and the elimination of the activities of manufacturing operations that do not increase the value of the product in relation to the customer's requirements. 4the results of applying the method of process re-engineering clearly showed an increase in the quantities of the planned production capacity, as it reached before re-engineering for the years (2008, 2009) it ranged between (400, 520) thousand tons per year, respectively, and after the process reengineering of the plant it became for the years ( (2018, 2019) by (1800) annually. the actual production capacity increased significantly, so it was (244, 215) thousand tons for the years (2008, 2009) respectively, and it has increased by (1600) thousand tons annually after re-engineering. this confirms the effectiveness of the integration between the two approaches above for the results obtained. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 22 www.americanjournal.org recommendations 1the traditional cost accounting system applied in the karbala cement factory due to the availability of all the necessary information to measure the costs of products, and to benefit from them in the decision-making process, and to take into account the changes and developments that occur in the industrial environment in order to reach maximizing profits at the aggregate level of the entity. 2the need for the economic entities of the research sample to apply the process re-engineering method due to the development in the industrial environment, dynamics and manufacturing techniques, which required those entities to develop their manufacturing and productivity methods in order to achieve their planning purposes. 3the need for the necessary elements and requirements to apply the re-engineering approach to ensure its success in rationalizing costs and enhancing competitive advantages for the economic entity, and that entity should focus on rationalizing costs, availability of products, and time to ensure competitive advantage in the light of re-engineering operations. 4follow the steps of process re-engineering to reduce the stages of the technical path of the current manufacturing processes in the factory, which contributes to shortening the production cycle, increasing the flexibility of production, as well as times of downtimes and manufacturing operations, and thus improving the overall performance of the factory. references: 1. abu al-nasr, muhammad medhat, "successful work teams building, growing, and managing to accomplish tasks better and easier", first edition, the arab group for training and publishing, cairo, egypt, 2002. 2. al-agha, maram ismail, “an applied study of re-engineering of administrative processes, reengineering in banks in the gaza strip,” to obtain a master’s degree in business administration faculty of commerce department of business administration, islamic university gaza, palestine, 2006. 3. al-amouri, ali muhammad thajeel; mohamed, mahmoud mohamed; al dhaheri, ali razzaq ali, “the influence of economic factors on the emergence of asymmetric costs and the rationalization of operational decisions,” journal of accounting and financial studies (jafs), volume (15), issue (50), 2020. 4. al-awadi, mustafa saad salem, “process reengineering and its role in achieving competitive advantage,” baghdad, 2014. 5. al-barwari, nizar abdel-majid, “quality management: an introduction to excellence and leadership,” first edition, al-warraq foundation for publishing and distribution, jordan, 2011. 6. al-hammadi, ali, “the path to excellence,” first edition, dareen hazm for publishing and distribution, amman, jordan, 2006. 7. ali, r. h., abd , w. h., & kareem, a. d. (2022). the role of the federal office of financial supervision in auditing industrial activity to achieve sustainable development. world economics & finance bulletin, pp. 11, 38-48. 8. al-saeed, mabrouk ibrahim, "strategic management of libraries in the light of contemporary management trends (total quality engineering knowledge management electronic management)", second edition, arab group for training and publishing, 2012. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 23 www.americanjournal.org 9. al-sayed al-badawi, muhammad, “total quality management how to develop your project and product”, first edition, dar al-ulum for publishing and distribution, cairo, egypt, 2017. 10. dhaidan, ahmed muhammad hamzah, “the role of integrating cost technologies based on specifications and process re-engineering in improving product quality,” a thesis submitted to the council of the college of administration and economics / university of baghdad, which is part of the requirements for obtaining a doctorate degree philosophy in accounting sciences, iraq, 2022. 11. drury , colin ," management and cost accounting" 10th edition , cengage learning. , u.k. , 2018 . 12. fragoso , j. t. , "business process reengineering in government agencies lessons from an experience in mexico" , journal of service science and management (8) (3) , 2015. 13. haroush, nour el-din, “the science of management from the traditional school of handra,” first edition, dar al-ayyam for publishing and distribution, jordan, amman, 2015. 14. horngren c t., datar s. m. and foster g., "cost accounting: a managerial emphasis",15th edition. pearson education. upper saddle river. new jersey, 2015. 15. ibrahim, al-saeed mabrouk, “strategic management of libraries in light of contemporary management trends” first edition, al-arabiya group for training and publishing, egypt, cairo, 2014. 16. kenneth, ndangoh , "applying business process reengineering to small and medium scale enterprises (smes) in the developing world" , european journal of computer science and information technology , european centre for research training and development uk , vol.(6), no.(1) , 2018. 17. parker j. , "guide to business process reengineering, 1993. 18. paul , a ; cespedes s. , "reengineering is just a catalyst in bank culture change" the bankers magazine, 1995. 19. shamroukh, mervat gamal el-din ali, “requirements of engineering as one of the mechanisms for organizing society and training workers in institutions of higher education,” future social journal, volume (4), issue (9), 2022. 20. sungau , joseph ," business process re-engineering: a panacea for reducing operational cost in service organizations " , independent journal of management & production (ijm&p) , v. (6), n. (1) , 2015. 21. sungau , joseph ," business process re-engineering: a panacea for reducing operational cost in service organizations " , independent journal of management & production (ijm&p) , v. (6), n. (1) , 2015. 22. thijeel, a. m., flayyih, h. h., & talab, h. r. (2018). the relationship between audit quality and accounting conservatism in the iraqi banks. opción: revista de ciencias humanas y sociales, (15), 1564-1592. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 296 www.americanjournal.org the economic benefit of the employee in developed countries and modern methods of its implementation umarova gulchehra, senior lecturer namangan engineering construction institute a b s t r a c t k e y w o r d s in the conditions of a developed market economy, various ways of realizing the economic interest of an employee are used, which are reflected in enterprise management models. the most common are the «american» and «japanese» models, which take into account the peculiarities of the historical and economic development of the two countries and, first of all, the mentality of the population formed over the centuries. in this article highlights of the economic benefit of the employee in developed countries and modern methods of its implementation. market, economy, interest of the employee; development of society, incentives and motives; working conditions, state and human. introduction in the production process, it realizes his ability to work and is interested in his labor being paid by the employer in accordance with the price imputed by the market. in the labor market, the economic interest of the employee is opposed by the employer with the interest of maximizing profits and wages corresponding to the factor price. in a developed market economy, various ways of realizing the economic interest of an employee are used, which are reflected in enterprise management models. the most common are the «american» and «japanese» models, which take into account the peculiarities of the historical and economic development of the two countries and, first of all, the mentality of the population formed over the centuries. thus, characterizing the personality of an employee in japan, it should be noted that in the hierarchy of values, japanese labor comes first. they are satisfied with a job well done, adapted to the conditions of strict discipline, high rhythm, work intensity and agree to overtime work. this has formed a set of rules, the departure from which causes the employee dissatisfaction. within the framework of primary production units, collective forms of labor organization are used, which have formed a «social person» with a specific system of incentives and motives. incentives are implemented through wages, working conditions, leadership style, and interpersonal relationships. the motives for highperformance work are the success of the employee, recognition of his merits, service and professional growth, the degree of responsibility delegated to him, the opportunity to realize creative potential. the attitude of the japanese towards the concept of «social person» is more flexible than that of the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 297 www.americanjournal.org americans. unlike workers in other countries, they do not strive for unconditional fulfillment of rules, instructions and promises, since they build relationships with their partners on the basis of trust. before the emergence and development of capitalist relations, there was an equalizing remuneration for work in the rural community, which left a deep mark on the japanese national character. in the process of establishing industrial production, work motivation systems were developed taking into account the prevailing desire of workers for an equalizing distribution, on the one hand, and the personal contribution of each, on the other. when hiring, the same amount of remuneration is established, which subsequently increases depending on the length of service at this enterprise. the strongest motive for working in japan is the «corporate spirit», which means «merging» with the company and dedication to its ideals. it is based on the psychology of the group, which puts the interests of the group above the personal interests of individual employees. with such a system of relationships, not only strong work motivation is provided, but also a long time. the employee's temporary interest in the prosperity of the corporation. moreover, the employee is considered a member of the «production family», and not an ordinary «mercenary», so his responsibilities and rights go far beyond the scope of basic work duties. in other words, an employee is hired not just to perform specific production functions, but to use them «entirely», encouraging them to reveal all their abilities, realize all professional and human potential in the interests of this enterprise. thus, many large companies focus on training employees in a wide range of professions within the framework of their profile, which allows for job rotation. currently, the rotation of labor, along with its attractiveness in new jobs (better prospects for self-expression in the labor process, greater career opportunities, etc.) are considered in japan as one of the important conditions for strengthening labor motivation and improving the social climate in the team. obtaining job security guarantees reduces the fear of losing jobs in the process of continuous technological improvement of production. in addition, employees are more likely to sacrifice shortterm benefits for themselves in favor of creating a more efficient organization in the future. upon reaching retirement age, the following employment options are possible: stay at your company, if it is interested in this, but on the terms of a fixed-term employment contract; transfer to another company on the terms of a fixed-term employment contract; combine work at your own and other enterprises; start your own business, if financial opportunities allow; to exist on a very modest, according to japanese concepts, state pension and/or savings, as well as on the funds of their children. unlike in japan, in the american system of short-term employment, an employee is associated with an enterprise only by an employment contract that determines the scope of mutual rights, duties and responsibilities of the parties. an american employee is not as committed to the company as a japanese one, even working in a team. therefore, in the conditions of the brigade form of labor organization, its individual orientation is taken into account. at that time, managers in many organizations began experimenting with some of the emerging theories of human relations in order to restructure the production environment. in order to reduce workers' resistance to organizational changes taking place in corporations, programs were developed to improve the «quality of working life», through which they were involved in developing a strategy for its development, discussing issues of rationalization of production, solving various external and internal problems. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 298 www.americanjournal.org moreover, organizations have used various forms of a matrix management system, which allows them to overcome traditional barriers in the hierarchical chain of authorities, increase interaction and cooperation at all levels of management. at the same time, experiments began involving small groups of workers in management, which later became known as quality circles. so, as the needs of one level are satisfied, they cease to serve as motivators, new needs of a higher level arise. since with the development of a person as a personality, his potential expands, the need for self-expression can never be completely. therefore, the process of changing the motivation of behavior through satisfaction of needs is endless. in order for a particular employee to remain motivated to work, the company must create conditions to meet his most important needs. the involvement of employees in the processes of preparing and making managerial decisions, as well as monitoring their implementation, in japan is carried out not on the basis of the realization of property rights (the rights of employees as shareholders or shareholders of their enterprise), but their labor rights as participants in the production of goods and services. in this respect, japan differs from many other developed and transition economies in which the involvement of employees in management is conditioned by their participation in property (capital). within the framework of the «joint consultations», representatives of the administration and their employees (represented by trade unions) discuss issues directly affecting the interests of employees. this is about the amount of wages, the length of the working week, working conditions, etc. at meetings, employees listen to the employer's attorneys explaining the essence of decisions taken or being prepared by the administration, and actively participate in their discussion. representatives of the employer usually have the last word, but the principle of consensus is often used. the second scheme for involving employees in the management process is the «ring system». this is a specific japanese algorithm for collective decision-making by searching and finding a compromise. its essence lies in the fact that draft decisions prepared by managers are sent for approval to all those who will implement them, primarily employees, whose wishes and suggestions are taken into account when making final decisions. this form of participation of all employees of the company in making decisions affecting their interests is carried out mainly in the form of participatory management in the following areas: granting employees the right to make independent decisions on a number of issues; attracting employees to collect the necessary information, determining how to implement the decision, organizing work, etc.; monitoring the quality and quantity of work performed; participation in the improvement of the activities of both the whole organization and its individual departments; creation of working groups on interests, attachments, etc. in order to implement decisions more effectively. the three main forms of involving workers in management are the most common: participation of workers in the management of labor and product quality at the workshop level; creation of workers' councils (joint committees) of workers and managers; involvement of workers' representatives in corporate boards of directors, although in practice it is extremely rare. special attention should be paid to the role of trade unions in the company. by working out a collective agreement at the enterprise level, the trade union is an institution for coordinating the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 299 www.americanjournal.org interests of employees and management. thus, the trade union of employees of a japanese company represents their collective interest in the process of developing an internal corporate management policy, uniting all permanent employees. the creation of this institution of labor agreements was not prescribed by law, according to which, once defined as independent, any organization of employees or their representatives has the right to negotiate with the administration, no matter how small it may be. theoretically, employees of one firm can be represented in several competing trade unions or in one branch trade union. agreements at the g level of enterprises in the same industry are often coordinated by the industry federation of trade unions of enterprises. despite the fact that japanese laws allow groups of employees of one company to be members in different organizations, the union leadership prefers to defend the interests of all employees in such a way that representation of interests in negotiations with the administration is maintained. the emergence of a competitive union weakens it in bargaining with management. but, since the support of the majority does not guarantee exclusive representative rights, the leadership of the trade union tries to find consensus in order to ensure the support of ordinary members. otherwise, consistent disregard for the interests of a minority may lead to the formation of a competitive organization that expresses their interests. consequently, the management of the trade union of employees of the enterprise makes great efforts to balance the interests of various groups. the legal basis for organizing a trade union in the united states is fundamentally different from the japanese one. in the united states, members of the working group who officially won the majority of votes in elections held under the control of the national labor relations board receive from the local branch of the union the exclusive right to represent the interests of workers and negotiate with the administration. the workers' representatives at the negotiations are members of an «industry» trade union (formed on the principle of belonging to a certain profession). however, despite this, most collective agreements in the manufacturing industry are reached at the enterprise level. the best strategy for an industry union to secure the support of a majority of its members is to express the interests of the average voter on the relevant issue. this explains why the american labor union is more concerned with wage issues than job security, as long as there is no real threat of mass layoffs. when using the m seniority rule in solving employment issues, the youngest employees are the most vulnerable to dismissal, and the «average» trade union member with average work experience is reliably protected from the threat of dismissal in a stable situation. of particular interest is the way employees participate in the distribution of the results of the economic activity of the enterprise. in japan, such participation is carried out mainly on the basis of labor rights. in this case, the income of a japanese employee is divided into two parts: constant and variable. permanent income is a basic salary plus various benefits and subsidies from the company (for housing, medical services, travel to the place of work, etc.). despite the obvious advantages, the profit sharing system has a number of limitations that limit its widespread use in the united states. these include: difficulties in assessing the contribution of each employee to the amount of profit; there is a close relationship between the level of efficiency and the management system. to overcome these circumstances, many american companies are switching to using so-called income distribution plans. the income distribution mechanism includes a large number of bonus payment schemes, in which a certain part of each employee's salary depends on the efficiency of the unit. such a system of income participation stimulates an increase in the efficiency of a certain group of american journal of business management, economics and banking volume 20 january, 2024 p a g e | 300 www.americanjournal.org employees: a factory, department, workshop or the company as a whole. at the same time, every employee receives bonus payments. unlike the profit sharing system, the income distribution system is designed in such a way that bonus payments depend on productivity, quality, saving materials, meeting consumer demand, and reliability of work. as a result, each employee realizes the close relationship between the results of their work and the amount of the bonus. the peculiarity of the profit sharing system is that the effect of its application does not affect immediately, but several years after implementation. the system itself provides a high economic and social impact in cases where employees have timely and accurate information about the activities of the organization, and it will not be effective enough if it does not cover the entire staff of the organization. thus, the analysis of the models of intra-company interaction of the organization's personnel made it possible to identify the economic interest of the employee and identify various ways to implement it. the main forms are employee participation in enterprise management and profit sharing. references: 1. умарова г. ш. роль иностранных инвестиций в развитии национальной экономики //international scientific journal. – 2016. – №. 3. – с. 148-149. 2. ёкубжанова х. ё., байтураев о. у., умарова г. ш. проблемы привлечения инвестиций в экотуризм //молодой ученый. – 2016. – №. 4. – с. 327-329. 3. мирзамахмудов т., умарова г. некоторые вопросы основ местного самоуправления //теория и практика развития экономики на международном, национальном, региональном уровнях. – 2014. – с. 222-224. 4. набиев ш., умарова г. роль физики и основные условия эффективности системы образования в подготовке высококвалифицированных научных и инженерных кадров //теория и практика современной науки. – 2016. – №. 5 (11). – с. 662-665. 5. умарова г. освещение гендерных проблем в программе «оила» телевидения таджикистана. – 2012. 6. shavkatovna u. g. innovative management in personnel selection policy //journalnx. – с. 664666. 7. инамова г. а., умарова г. ш. свободные экономические зоны как механизм инновационного развития экономики страны //перспективные области развития науки и технологий. – 2019. – с. 48-50. 8. набиев ш. и., умарова г. ш. чему учить в вузе?(размышления) //актуальные научные исследования в современном мире. – 2016. – №. 12-4. – с. 57-60. 9. набиев ш. и., умарова г. ш. « узбек»-сам себе князь или» угузбек»-князь огузов? //міжнародний науковий журнал. – 2016. – №. 3. – с. 21-22. 10. набиев ш., умарова г. мистика или реальность (существует ли судьба и ангел хранитель?) //экономика и социум. – 2018. – №. 10 (53). – с. 460-462. 11. набиев ш. и., умарова г. ш., усмонов и. и. об истории происхождения слова “татар” и татарского народа //science time. – 2017. – №. 6 (42). – с. 28-30. 12. мирзамахмудов т., талабоев х., умарова г. социально-экономическое значение производственных отношений в условиях рыночной экономики //молодой ученый. – 2015. – №. 5. – с. 296-297. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 301 www.americanjournal.org 13. sh u. g. key factors of economic growth //теория и практика современной науки. – 2018. – №. 1 (31). – с. 58-61. 14. sh u. g. the role of youth in the formation of the national spirit //мировая наука. – 2018. – №. 5 (14). – с. 95-97. 15. sh u. g., shermatov e. g. the role of management in economic sectors //экономика и социум. – 2022. – №. 4-2 (95). – с. 503-506. 16. sh u. g. market pricing mechanism //экономика и социум. – 2018. – №. 2 (45). – с. 82-84. 17. умарова г. ш., набієв ш. і. «узбек»-сам себе князь или «узбек»-князь огузов?. 18. умарова г. ш. kasbiy tayyorgarlik jarayonida menejment madaniyatini shakllantirishning pedagogic asoslari //academic research in educational sciences. – 2021. – т. 2. – №. cspi conference 1. – с. 1397-1402. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 27 www.americanjournal.org importance of risk map in the management of risks that may occur in commercial banks muqumov orifjon abduroziqovich director of risk management department of jsc aloqabank, uzbekistan, tashkent city e-mail: orifjon.muqumov@aloqabank.uz a b s t r a c t k e y w o r d s the article provides information on the types of risks that may arise in commercial banks of the republic of uzbekistan, as well as the importance of using the risk map in preventing and managing these risks. risk, types of risk, register of risk events, risk map, risk codes, risk management strategy. introduction currently, there is a strong focus on improving risk management systems in the corporate management of commercial banks. in particular, the structure of risk management in commercial banks of the republic of uzbekistan was registered by the ministry of justice of the republic of uzbekistan on may 25, 2011 “on requirements for the management of banking risks of commercial banks” 2229 it was introduced on the basis of regulation no [1]. in particular, this year, this regulation was improved and a new version was registered by the ministry of justice of the republic of uzbekistan on april 18, 2023, and it was determined that the risk management system of commercial banks will be regulated on the basis of this regulation. this new version of the regulation contains information on measures to be taken to improve risk management in commercial banks [2]. in addition to this regulation, we will consider below the prospects of establishing the practice of using a risk map in risk management in commercial banks. creating a risk map in commercial banks is a necessary element in creating a risk management system. a risk map provides a holistic view of risk management, from the types of risks and their sources to control and management methods. a bank’s risk map helps to answer questions about where risk occurs, who manages and controls this risk, limits risk acceptance and risk control. 2. literature review local and foreign scientists have conducted a number of researches and developed scientific literature on risk management in commercial banks. in the scientific works of foreign economists joyol bessis [3], anthony saunders and marcia millon cornett [4], andrea resti and andrea sironi [5], the risks that may arise in commercial banks and their management have been studied. philipp harle [6], andras american journal of business management, economics and banking volume 15 august, 2023 p a g e | 28 www.americanjournal.org havas and hamid samandari, a. ghosh, m. crouhy, d. galai, r. marklar [7] also conducted research on effective risk management methods in their research. 3. research methodology in the research process, general logical (induction, deduction, analysis and synthesis, analogy, generalization) and specific scientific (comparison, grouping, statistical analysis and economicmathematical) methods were used. 4. analysis and discussion of results in order to effectively manage risks, first of all, it is necessary to distinguish their separate types to classify them in order to develop management decisions for each risk group based on their specific characteristics. according to the regulation “on requirements for the risk management system of banks and groups of banks” approved by the central bank, the following types of risk are defined as significant types of risk for commercial banks: figure 1. types of risks [8]. the risk map is a means of visual representation of certain risks encountered during the banking activity. the risk map is one of the most important tools of risk management, through which it is possible to monitor the bank's risk profile and improve the bank's risk management process. a risk map is often presented as a two-dimensional matrix. for example, the probability of occurrence of a risk is plotted on the x-axis, and the effect of the same risk on the y-axis. through this visualization, it is possible to decide whether to pay more attention to the risks that occur a lot and have a high level of impact on the banking activity. one of the problems related to risk management in the activity of commercial banks is that banks do not keep a register of risk events. through these registers, a risk map is formed in the bank. risk events are identified by risk coordinators in each department and reported to the risk management department. the register of these events is collected and recorded by the risk management unit, and the supporting sources are collected and regularly analyzed by the risk management unit. the management of the bank and relevant structural units will be notified of the results of the incident investigation, and measures will be developed to reduce the consequences of the incident and prevent such incidents in the future. the register of risk events includes the following information: a)the date of occurrence, detection and registration of the incident; b) the date on which the impact caused by the event was taken into account; d) the employee who caused the incident; american journal of business management, economics and banking volume 15 august, 2023 p a g e | 29 www.americanjournal.org e) the structural unit that identified the incident and is responsible for its investigation; f) description of the event and reasons for its occurrence; g) amount and type of the economic impact of the event in national currency, including damages, compensation payment, possible damages; h) type of risk associated with the event, including credit risk, market risk; i) classification of the event according to the level of significance. events are classified according to the frequency of occurrence according to the following criteria: a) if the event is repeated from 1 to 5 times it is very rare; b) if the event is repeated from 5 to 10 times less; d) if the event is repeated from 10 to 25 times medium; e) if the event is repeated from 25 to 50 times a lot; f) if the event is repeated more than 50 times too many. events with the amount of direct loss or probable loss are classified according to the level of impact on the banking activity based on the following criteria: a) events with a loss amount up to 0.0005% of the amount of the bank’s private capital are insignificant; b) incidents with a loss amount from 0.0005% to 0.005% of the bank’s private capital are small; d) events with a loss amount from 0.005% to 0.05% of the amount of private capital of the bank medium; e) events with a loss amount of 0.05% to 5% of the bank’s private capital serious; f) incidents with an amount equal to or greater than 5% of the bank’s private capital are very serious. according to the scope of the impact, events where the amount of loss cannot be calculated are evaluated by an expert with the classification of insignificant, small, medium, serious and very serious. the level of risk is classified according to the combination of the frequency of occurrence of events and the degree of impact on banking activities in the following order: table 1 levels of risk of events [10] frequency of occurrence of events the degree of influence on the banking activity risk level very little it doesn’t matter low very little small low many it doesn't matter low medium it doesn't matter low many it doesn't matter low too much it doesn't matter below average little small below average medium small below average many small below average very little medium below average little medium below average too much small average medium medium average many medium average very little seriously average little seriously average american journal of business management, economics and banking volume 15 august, 2023 p a g e | 30 www.americanjournal.org very little very serious average too much medium above average medium seriously above average many seriously above average many very serious above average medium very serious above average too much seriously high many very serious high too much very serious high below we will consider the operational risk map compiled by at “aloqabank” based on the data on the results of the first quarter of 2023: table 2 at “alokabank” risk map [11] as of 01.04.2023 risk level p ro b a b il it y o f o cc u rr en ce too much low a lot оr-1700 оr 1521 оr 1900 оr 1521 below average medium оr -1600 оr 1600 average few оr -1900 оr 1900 оr 1521 оr 1600 оr 1700 оr-1600 above average very little оr 2100 оr 3050 оr 1600 оr-1100 оr-1300 high it doesn't matter small average seriously very serious the level of influence on the bank’s activity american journal of business management, economics and banking volume 15 august, 2023 p a g e | 31 www.americanjournal.org internal fraud cases (or–1000), external fraud (or–1100), errors in customers, products and business practices (or–1300), deficiencies in business process software communication systems (or–1500), the bank’s new colvir software problems (or–1521), power outages (or–1600), management errors (or–1700), operational risks due to low professional level and negligence of bank employees (or– 1900), compliance with fire safety cases of failure to do so and the bank building not being technically secured against this risk (or-2100), cases of damage to collateral property due to a natural disaster (or-3050). it can be seen from the data in the operational risk map above that in the first quarter of this year, the events that seriously affect the bank were the problems with the bank’s new colvir program (or-1521). in addition, there are the following risks, which are rated as having a medium impact on the bank’s activity: power outages (or-1600); external frauds (or–1100); operational risks due to low professional level and carelessness of bank employees (or-1900). 5. conclusions and suggestions in the process of globalization, as a result of the increase in digitalization of information, new modern facilities are being created in every field. in particular, commercial banks also have opportunities to establish new types of services and create new management methods. in order to determine the existing risk profile of commercial banks, to continuously monitor the risks encountered during the bank’s activity and the amount of losses suffered as a result, the risk management department of the bank should regularly maintain a register of risk events [12]. through this, the head of the risk management unit must inform the bank’s management and the bank council about all the risks arising in the bank. with this information, the bank should pay more attention to the risks it faces in most cases or the risks that cause many losses, and in the future, it should minimize or take measures to prevent them. 6. literatura/reference: 1. by the decision of the board of the central bank of the republic of uzbekistan on 25.05.2011, registered with the number 2229, the regulation “on the requirements for the management of banking risks of commercial banks”. 2. regulation “on requirements for the risk management system of banks and groups of banks”, registered on 18.04.2023 with no. 3427 by the decision of the board of the central bank of the republic of uzbekistan. 3. prof. joёl bessis “risk management in banking”//june 29, 2015// wiley 4th edition. p-8. 4. professor anthony saunders and professor marcia millon cornett “financial institutions management”// february 9, 2017// mcgraw hill; 9th edition. p10. 5. andrea resti and andrea sironi “risk management and shareholeders’ value in banking. 2007. john wiley & sons, ltd. p277. 6. philipp harle, andras havas and hamid samandari “the future of bank risk management”//july 22, 2016//mckinsey.com 7. a.ghosh. managing risks in commercial and retail banking; john wiley&sons: hoboken, nj, usa, 2012. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 32 www.americanjournal.org 8. m.crouhy, d.galai, r.mark. the essentias of risk management// mcgraw-hill: new york, ny, usa, 2006. 9. it was prepared by the author based on the principles of economics and finance. 10. risk management lessons from the global banking crisis of 2008, fsb, october 2009. 11. risk management lessons from the global banking crisis of 2008, fsb, october 2009. 12. tursunkulovich s. r., bakhtiyorovich o. b. some using questions instruments of monetary policy //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 3. – с. 211-216. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 63 www.americanjournal.org measuring and analyzing financial health indicators to reduce financial fragility -an analytical study of a number of private commercial banks listed on the iraq stock exchange jamal hadash mohammed lina tariq ali 3 sinan abdullah harjan a b s t r a c t k e y w o r d s the research focused on measuring and analyzing indicators of financial health in reducing financial vulnerability an analytical study of a number of private commercial banks listed on the iraq stock exchange the research problem focused on the main question "can the financial health of iraqi banks be measured and analyzed?" the research aimed to measure and analyze the financial health of a number of private commercial banks to identify banks that enjoy better financial health to reduce financial fragility. the research used the descriptive analytical method using programs excell and evewis, and the research concluded, the results showed a long-term relationship and the sign is negative, which means that the relationship is inverse between (the rate of return on assets x1, the rate of return on deposits x2) and the financial fragility index (y) and at a probability level of less than 5%, and the research recommended by investing more at the rate of return on deposits and return on assets. financial health, financial fragility introduction the global financial environment witnessed a high degree of competition, which required keeping pace with developments taking place in the world of finance and business at the global level in general and in iraq in particular, which led to rapid development in its activities, which confronts it with the possibility of failure represented by financial fragility, which means the necessity of focusing on financial instruments that raise of financial health, which reduces financial fragility, which is one of the important tools in the world of finance, it represents a tool for measuring financial performance through which the work of banks can be improved and their financial and operational performance can be increased in light of the developments and acceleration that the world is experiencing today . american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 64 www.americanjournal.org first: the research problem: the banking sector faces many risks as a result of political and economic conditions, whether local or international, and these conditions directly affect the financial health of banks. these factors are divided into external factors, such as the global financial crisis, recession, and decline of the global economy, and internal factors, such as wars, occupation, and conflicts, which are a threat to the continued work of banks and the achievement of their goals, and this in turn is generally reflected in the health and efficiency of the bank and thus its ability to invest and generate profits. accordingly, the problem of the study can be formulated with the following main question: “is it possible to measure and analyze the financial health of iraqi banks”? second: research objectives: the research aims to measure and analyze the financial health of a number of private commercial banks to identify the banks that enjoy better financial health in order to reduce financial fragility using financial health indicators represented by (the rate of return on equity, the rate of return on assets, the rate of return on deposits, and finally net profit margin). third: the importance of research the importance of the research stems from the following: ameasuring financial health as one of the indicators of modern financial management today through its indicators banalysis of financial fragility and its levels in the investigated banks cproviding a cognitive framework about the relevant variables, which contributes to the availability of their perceptions . fourth: research hypothesis : the research seeks to achieve the following two main hypotheses : the first main hypothesis, which states (there is a correlation between financial health and the significance of its indicators in reducing financial fragility). the second main hypothesis, which states (there is a significant effect on financial health in terms of its indicators in reducing financial fragility). fifth: research methodology: the research relied on the descriptive approach to present the theoretical aspect and the analytical approach to test the validity of hypotheses through the use of a package of financial and statistical programs . sixth: the research community and its sample the research population represents the iraqi banking sector, but the research sample was limited to 4 banks as a purposeful commercial sample, especially in iraq, which are (united investment bank, baghdad international bank, mosul bank, and middle east bank .) american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 65 www.americanjournal.org seventh: limits of research time limits: the research limits were for the period 2011-2020. spatial boundaries: the research sample banks listed on the iraq stock exchange. the first topic (theoretical framework) first: the concept of financial health. financial health is one of the important and modern topics in financial management that must be addressed when evaluating the financial condition of banks and other financial institutions by addressing the most prominent concepts related to financial health, as (al-imam, 2010: 10) indicated that financial health expresses the condition that through it, banks use their available resources efficiently to enable them to manage the risks they face. financial health is also defined as the ability to manage spending, plan, and recover from financial shocks and crises. financial health is a description of the financial condition of banks and institutions of various types, how they deal with their available financial resources, and the extent of their ability to pay their financial obligations on time (o'neil et al, 2006: 47). (whitehead & bergeman, 2017: 865) define it as a comprehensive assessment of the financial conditions of banks, including the ability to support the fulfillment of basic financial needs, which also includes opportunities for saving and maximizing wealth. (rashwan and abu nasser, 2021: 121) define financial health as a diagnosis of the financial situation of banks in terms of their ability to use available resources and their ability to pay their financial obligations in the short term, in order to measure and evaluate their financial performance during a certain period with the aim of achieving financial stability and its strategic objectives. financial health is a comprehensive assessment of financial status that includes the ability to support the fulfillment of basic needs, which also includes opportunities to save and build wealth (115: 2022 et al. sabri). financial health is essential for any financial institution, whether banks or companies, as it is the basis through which one can identify the institutions’ ability to use their financial resources efficiently, as well as knowing the extent of their ability to generate profits and the extent of their ability to identify and predict the risks that they may face in order to address and maintain them. on their financial soundness, which reflects the extent of their ability to fulfill financial obligations and face difficulties and obstacles, that is, the extent of the banks’ ability to reduce the negative effects that may occur as a result of economic changes and confront the crises they face financial health of banks. financial health refers to the state and stability of the financial affairs of banks. when measuring the financial capacity of banks, one must recognize the most important standards that are used to measure that capacity, as there are four basic elements that must be verified to judge the efficiency of the bank. thus, we can identify the dimensions of financial health that enable banks to improving its financial health, which is achieving profits, liquidity, ability to repay, financial analysis and record keeping (sarhan, 2016: 200), and (edwards, 2014: 6) added other elements in addition to achieving profits, managing financial liquidity, financial efficiency and the ability to repay other dimensions. it was represented by the ratio of asset turnover, net income, and operating expenses . in the same context, (johnson & hanson, 3) indicated that there are six basic steps for managing the financial health of banks, which are implemented through good financial planning, and the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 66 www.americanjournal.org financial manager must work to complete these steps and complete them during the bank’s period of operation . second: the importance of analyzing the financial health of banks understanding financial health and its determinants is important for policy makers and financial professionals to integrate financial health into the economic well-being and financial health of banks in order to enhance their performance as well as stand against the financial crises and difficulties they face (wijekoon et al., 2021). the financial analyst analyzes the bank’s financial health using its previous financial statements in order to measure and evaluate the performance and financial position and thus estimate the bank’s financial future. through this analysis, it is possible to know its financial strengths and weaknesses, and the importance of health analysis is summarized as follows (rashwan and abu nasser, 2021: 121 (. 1. it helps banks identify the level of profitability, as well as the possibility of comparing it with other competing companies operating in the same sector . 2. knowing the bank’s efficiency in using and investing its assets. 3. knowledge of the credit policies followed by the bank. 4. know the level of inventory you maintain. third: financial health indicators: what is meant by financial health indicators are tools that help the financial analyst interpret the financial health of banks by calculating them for more than one financial period and comparing them together (trend analysis) and comparing them with the industry average (i.e. ratio analysis), which clearly reveals the financial position of banks in terms of strengths and weaknesses . financial health indicators are known as the foundation upon which financial health is based in order to measure and evaluate the financial performance of banks and compare their performance with their competitors, as well as the possibility of using them to predict financial bankruptcy in the future (gitman. 2009: 69(. while (shams el-din, 2016: 4) defines it as a set of metrics that enable us to measure and evaluate the financial performance of banks and know the extent of its deviation from the actual planned performance. that is, it is a tool to identify the current financial position of the bank in a specific period or a specific aspect of the bank’s performance it is also known as the tools that banks rely on in order to objectively evaluate their financial performance from many aspects of their activities, such as analyzing their financial ability to repay or maintain their assets or their ability to predict future profits (rashwan and abu nasser 2021: 122(. the researcher believes that financial health indicators are a method that expresses the company’s performance and reflects an image of the extent of its ability to achieve its desired goals by employing commonly used financial indicators to determine its strength and the extent of the health and safety of its financial position. there are many indicators to measure financial health: liquidity, financial solvency, operational efficiency, and profitability. among these four measures, the best measure of financial health is the level of its profitability. accordingly, a number of profitability ratios will be used as indicators to measure financial health. my agencies are : american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 67 www.americanjournal.org 1. rate of return on equity: it is the total return on capital shares, and it is a standard that shows the bank’s ability and the extent of its success in generating profits by converting equity investments into profits and is measured according to the following formula (hanash and al-ajroud, 2019: 65(. rate of return/equity * 100 2. rate of return on assets: it is one of the ratios on which the financial performance of banks and the extent of their success is based. this ratio shows the extent of the bank’s efficiency in using its total assets to generate profits. a high ratio indicates the company’s effectiveness in managing its assets to achieve profits and is measured according to the following formula (rosikah et al. al, 2018: 7) rate of return/assets *100 3. rate of return on deposits: this indicator measures the extent of banks’ ability to generate profits from the deposits they obtain and can be measured by the following relationship (hamid and al-atabi, 2016: 9(. return rate/deposits *100 4. return on assets available for employment: this ratio measures the extent of the bank’s efficiency in achieving profits from its available funds, represented by property rights and deposits, and investing them in the optimal manner. a high ratio indicates the efficiency of management in using resources, but if the ratio decreases, it indicates that the bank’s financial resources are increasing. at a rate greater than the rate of increase in net profit, (hussein and almawla, 2021: 179) and it is measured by the following equation = rate of return / funds available for employment * 100 5. net profit margin: it is a ratio that measures the net profit resulting from sales, in order to determine the extent of the company’s efficiency in generating profits and increasing them by investing its resources in an optimal way. the importance of the profit margin stems from the fact that it enables the bank to evaluate whether its current activities are effective or not. and to ensure its financial health and predict the percentage of profits through revenues by monitoring the increase or decrease in the net profit margin, and most banks disclose their net profit margin on a quarterly basis in order to increase their stock prices and thus increase profits, and they are measured according to the following formula (makhlouf, 2019: 24) fifth: financial fragility many believe that the concept of financial fragility is linked to the concept of financial instability. therefore, the concept of financial fragility can be viewed as financial instability associated with a state of economic decline through fluctuations in the price of financial credit as well as the inability of those institutions to fulfill financial obligations (ruwaibah and firas, 2021: 28). or it is the result of the failure of financial institutions to an external shock, which causes their financial instability, which leads to default and thus loss of profitability)schroeder, 2009:287). financial fragility may arise due to disruption and default fluctuation in interest rates, rise and fall, or lack of access to external financing, or shocks that affect the monetary system (tymoigne, 2012: 721(. financial fragility can be viewed as a visible result of the remnants of non-payment and disturbances in returns such as the return on investment, as well as the nature of external financial financing, which exposes the institution to financial fragility (abdel-kadhim, 2022: 35(. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 68 www.americanjournal.org the z-score measure can be used to measure financial fragility in the investigated banks financial fragility may occur for the following reasons 1. financial instability, which results from weakness in paying high obligations and fluctuations in profitability 2. financial behavior, which is practiced by decision makers, such as herd behavior, as well as financial panic 3. default on payment, which exposes the bank to the appearance of financial fragility in its performance behavior 4. weak investment in assets and deposits, which exposes them to weak achieved returns measuring and analyzing financial health indicators to reduce financial fragility first: unit root tests . 1. test (2002) levin, lin and chu-llc: we note from table (1) that all variables stabilized at level (1) and also stabilized at the first difference (1):1 as follows: table 1test (2002) levin, lin and chu-llc: levin, lin & chu t at level at first difference t-statistic prob الحالة t-statistic prob الحالة y 2.871490.0020 intercept 3.622390.0001 intercept x1 -2.46421 0.0234 intercept -9.10892 0.0000 intercept x2 -4.03032 0.0023 intercept -10.6608 0.0000 intercept x3 -0.36424 0.0342 intercept -9.70044 0.0000 intercept x4 -6.55600 0.0000 intercept -10.9937 0.0000 intercept table: prepared by the researcher based on the outputs of the eviews program.12. 2. test (2003) i’m, pesaram and shin (ips : we notice from table (2) that all variables stabilized at level (1) and also stabilized at the first difference (1):1 as follows: table 2: i’m, pesaram and shin (2003) ips test results: i’m , pesaram and shin (ips( at level at first difference t-statistic prob الحالة t-statistic prob الحالة y -2.42013 0.0034 intercept -2.54327 0.0005 intercept x1 -1.59946 0.0342 intercept -1.87656 0.0000 intercept x2 -1.83613 0.0432 intercept -2.32145 0.0000 intercept x3 -2.08876 0.0431 intercept -3.98743 0.0000 intercept x4 -2.65437 0.0038 intercept -2.54321 0.0000 intercept table: prepared by the researcher based on the outputs of the eviews program.12. second: estimating the impact of financial health indicators in reducing financial fragility. first, before starting to conduct the multiple regression analysis test, data tests will be conducted to identify problems that affect the accuracy of the data and address them to reach the best results. the most important of these tests are: american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 69 www.americanjournal.org 1. detecting the problem of variance difference panel period heteroskedasticity lr test: this test is used to confirm the extent to which the estimated model is free of the problem of variance difference for the residuals, as shown below: table (3 ( results of the contrast difference problem for the panel period heteroskedasticity lr test panel period heteroskedasticity lr test null hypothesis: residuals are homoscedastic value df probability likelihood ratio 112.2620 5 0.06543 lr test summary: value df restricted logl -222.7943 45 unrestricted logl -166.6633 45 table: prepared by the researcher based on the outputs of the eviews program.12. table (3) shows us the results of the test of the variance difference problem for the panel period heteroskedasticity lr test, as we note that the value of (f-statistic) is at a probability level greater than (5%), and this means that the model is free of the variance difference problem, and therefore here it must we accept the null hypothesis that there is no variance problem among the random residuals, and we reject the alternative hypothesis that there is a problem of variance variance among the random residuals . 1 detecting the problem of autocorrelation residual cross-section dependence test: this test is used to verify the extent to which the estimated model is free of the problem of autocorrelation of the residuals, as follows : table (4): results of the lm autocorrelation problem test residual cross-section dependence test test statistic d.f. prob. breusch-pagan lm 20.40112 10 0.2257 pesaran scaled lm 2.325761 0.3200 pesaran cd 2.965617 0.0730 table: prepared by the researcher based on the outputs of the eviews program.12. table (4) shows us the results of testing the autocorrelation problem. we note that the probability (f-statistic) reached (0.1819), which is greater than (5%). this means that there is no autocorrelation problem. therefore, here we must accept the null hypothesis which states that there is no autocorrelation problem. there is a correlation problem between the random residuals, and we reject the alternative hypothesis which states that there is a correlation problem between the random residuals. 2. impact analysis . the panel ardel method will be relied upon to estimate the impact of financial health indicators in reducing financial fragility as follows : american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 70 www.americanjournal.org 1long-term relationship table (5) results of estimating the impact of financial health indicators in reducing financial fragility in the long term dependent variable: d(y) method: ardl variable coefficient std. error t-statistic prob.* long run equation x1 -0.032357 0.044960 -0.719689 0.0093 x2 -1.978981 0.356079 -5.557706 0.0000 x3 3.141216 0.960813 3.269332 0.0035 x4 1.395680 0.284691 4.902438 0.0000 table: prepared by the researcher based on the outputs of the eviews program.12. the results of the long-term relationship showed the following : the results showed the presence of a long-term relationship and the sign is negative, which means that the relationship is inverse between (rate of return on assets one unit leads to a decrease in financial fragility (y) by (0.3) (1.9) units, respectively, with other factors remaining constant. the results showed the presence of a long-term relationship and the sign is positive, which means that the relationship is direct between (rate of return on equity one leads to an increase in financial fragility (y) by (3) (1.3) units, respectively, with other factors remaining constant. 2short-term relationship. table (6 ( results of estimating the impact of financial health indicators in reducing financial fragility in the short term short run equation cointeq01 -0.509222 0.213091 -2.389688 0.0259 d(x1) 0.371238 0.349037 1.063604 0.2990 d(x2) 1.474387 1.908978 0.772343 0.4481 d(x3) -15.68677 15.79793 -0.992964 0.3315 d(x4) -5.889785 5.149791 -1.143694 0.2607 c 13.63326 7.244893 1.881775 0.0732 root mse 14.30523 mean dependent var 0.573354 s.d. dependent var 32.64687 s.e. of regression 21.56595 akaike info criterion 5.565745 sum squared resid 10231.99 schwarz criterion 6.636478 log likelihood -111.1436 hannan-quinn criter. 5.973486 *note: p-values and any subsequent tests do not account for model table: prepared by the researcher based on the outputs of the eviews program.12. the results of estimating the parameters of the independent variable in the short term showed that the table shows that there is no relationship between financial health indicators and financial fragility due to the probability exceeding the 5% barrier . american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 71 www.americanjournal.org the results of the table show that the value of the error correction factor has a negative sign, reaching (0.5092) and this value is significant based on the probability value, which was (0.0259), which is less than (0.05), meaning that the first condition has been fulfilled, noting that this value indicates to the point that 50% of short-term errors can be corrected in a unit of time, represented here by the year, in order to return to the equilibrium situation in the long-term. joint integration between financial health and financial fragility indicators . it is noted from the results of the badroni test that five out of a total of seven tests confirm the existence of a long-term co-integration relationship between the study variables at a significant level (5%) at the individual categorical and general trend, that is, the presence of co-integration between the variables as in the following table: table (7) results of the cointegration test (pedroni test ( pedroni residual cointegration test series: y x1 x2 x3 x4 alternative hypothesis: common ar coefs. (within-dimension) weighted statistic prob. statistic prob. panel v-statistic -3.546442 0.9998 -3.313842 0.9995 panel rho-statistic 3.220126 0.9994 2.491010 0.9936 panel pp-statistic -4.755999 0.0000 -10.30581 0.0000 panel adfstatistic -2.026187 0.0214 -0.973519 0.1651 alternative hypothesis: individual ar coefs. (between-dimension) statistic prob. group rho-statistic 3.447643 0.9997 group pp-statistic -10.40261 0.0000 group adf-statistic 0.174676 0.5693 cross section specific results table: prepared by the researcher based on the outputs of the eviews program.12. conclusions and recommendations : 1. the results of the long-term analysis showed the existence of a long-term relationship and the sign is negative, which means that the relationship is inverse between (the rate of return on assets (x2) by one unit leads to a decrease in financial fragility (y) by (0.3) (1.9) units, respectively, with other factors remaining constant. 2. the results showed the presence of a long-term relationship and the sign is positive, which means that the relationship is direct between (rate of return on equity one unit leads to an increase in financial vulnerability (y) by (3) (1.3) units, respectively, with other factors remaining constant. 3. the results of estimating the parameters of the independent variable in the short term, as the table shows that there is no relationship between financial health indicators and financial fragility due to the probability exceeding the 5% barrier . american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 72 www.americanjournal.org 4. the results showed that the value indicates that 50% of short-term errors can be corrected in a unit of time, represented here by the year, in order to return to the equilibrium situation in the long term. second: recommendations 1. the need to invest more in indicators (rate of return on assets, rate of return on deposits 2. we must work to reduce financial fragility by paying greater attention to return indicators 3. it is necessary to pay attention to indicators of financial health and fragility in the long term, as they have achieved positive results in the short term sources and reference first: arabic sources 1. al-imam, salah al-din muhammad amin, using the camels classification system in achieving the financial soundness of banks applied research on a sample of iraqi banks, 2010, al-mansour magazine, no. 13 . 2. hussein, ahmed ali and al-mawla, (2021), evaluating profitability and its impact on productivity in commercial banks (applied research in a sample of private iraqi banks), journal of the faculty of science, 13 (1), 173201 . 3. rashwan, abdul rahman muhammad and abu nasser, hassan atef, (2021), measuring and analyzing the impact of using financial health indicators on market value an applied study on banks listed on the palestine stock exchange, palestine technical university journal for research, 9 (2), 115134. 4. sarhan, ahmed mustafa muhammad, (2016), adoption of good management practices and their relationship to the financial health of the farm among small dairy cattle breeders in qena governorate egypt, journal of economics and agricultural sciences, mansoura university, 7 (2), 199-215 . 5. shams el-din, abdel-rahman hamza, (2016), the role of financial analysis tools in evaluating an economic institution a case study of sonatrach, rto branch, master’s thesis in commercial sciences, faculty of economic, commercial and management sciences, abdelhamid ben badis university, mostaganem, algeria 6. abdul-kadhim, sarmad salem, the effect of financial leverage on financial fragility indicators an applied study of a number of companies listed on the iraq stock exchange, master’s thesis, tikrit university. 7. makhlouf, wassim suleiman, (2019), the impact of dividend policy on corporate profitability study of banks in the amman stock exchange, master’s thesis in business administration, syrian virtual university, syria . 8. hindi, ali hamid and sarhan, sarah salam, (2022), analysis of the reality of the financial health of private iraqi banks listed on the iraqi stock exchange for the period (2015-2020), international journal of economic studies, 21 (5), 129-134 second: foreign sources 1. edwards, w. (2014): financial performance measures for iowa farmers, iowa state university namibia, livestock research for rural development, vol.22, no.6. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 73 www.americanjournal.org 2. -johnson, d.m., and hanson, j.c. (no date financial management and diagnosing the financial health of the business, department of agricultural and research economics, university of maryland, usa 3. 5statcan , g. (2018). financial indicators from the national balance sheet accounts: update 4. rosikah, a., prananingrum, d., muthalib, d., azis, m., & rohansyah, m. (2018), effects of return on asset, return on equity, earning per share on corporate value, the international journal of engineering and science (ijes), vol. 7, no. 3, 5. 7-weida, e. b., phojanakong, p., patel, f., & chilton, m. (2020). financial health as a measurable social determinant of health. plos one, 15(5), e0233359, 1-14. 6. https://doi.org/10.1371/ journal.pone.0233359 7. o'neill, b., prawitz, a., sorhaindo, b., kim, j., & garman, e. t. (2006). changes in health, negative financial events, and financial distress/financial well-being for debt management program clients. journal of financial counseling and planning, 17(2),46-63 8. sabri, m. f., wijekoon, r., abd rahim, h., ahmad, n., burhan, s., madon, z., & hamsan, h. h. (2022). financial literacy, financial behavior, self-efficacy, and financial health among malaysian households: the mediating role of money attitudes. 9. schroeder, s. (2009). defining and detecting financial fragility: new 10. tymoigne, e. (2014). measuring macroprudential risk through financial fragility: a minskian approach. journal of post keynesian economics, 36(4), 719-744. 11. whitehead, b. r., & bergeman, c. s. (2017). the effect of the financial crisis on physical health: perceived impact matters. journal of health psychology, 22(7), 864-873. 12. zealand's experience. international journal of social economics appendices //financial statements of the banks under study middle east bank the years financial fragility return/assets return/de posits return/owner ship right net profit margin 2011 15.08 45.39 15.68 0.043 0.032 2012 16.68 48.96 13.56 4.642 0.035 2013 18.53 43.44 10.99 4.743 3.16 2014 28.78 7.232 0.844 0.731 0.383 2015 26.38 98.15 1.521 1.852 0.635 2016 28.31 33.01 4.089 4.665 1.788 2017 22.81 2.163 0.217 0.179 0.077 2018 20.91 14.36 0.847 0.534 0.286 2019 25.64 0.484 0.029 0.029 0.011 2020 25.61 9.126 0.791 0.787 0.323 mosul bank the years financial fragility return/assets return/dep osits return/owners hip right net profit margin 2011 15.29 53.79 10.76 6.816 0.041 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 74 www.americanjournal.org 2012 20.05 61.26 6.836 6.708 0.034 2013 21.79 65.07 13.02 14.36 6.897 2014 30.35 15.91 0.687 0.799 0.522 2015 28.64 4.597 0.091 0.383 0.09 2016 26.16 38.49 1.326 2.615 0.858 2017 26.82 43.08 1.809 3.849 1.195 2018 26.1 23.72 0.972 2.215 0.63 2019 26.42 36.71 1.273 2.882 0.833 2020 27.18 21.27 0.539 1.436 0.365 united investment the years financial fragility return/assets return/dep osits return/owners hip right net profit margin 2011 12.05 64.22 15.11 14.52 0.066 2012 13.8 4.265 14.64 13.81 0.048 2013 13.26 39.73 8.202 8.623 3.992 2014 15.32 45.35 6.411 11.62 3.625 2015 15.65 44.21 6.069 8.663 3.411 2016 16.34 4.48 0.327 0.761 0.201 2017 40.73 23.01 1.434 4.105 0.821 2018 14.97 77.2 3.454 14.32 2.035 2019 13.3 22.07 0.678 2.963 0.341 2020 11.58 2.909 0.147 0.294 0.064 bank of baghdad the years financial fragility return/assets return/dep osits return/owners hip right net profit margin 2011 12.56 37.68 13.14 2.996 0.024 2012 12.17 40.01 8.335 2.397 0.019 2013 12.49 37.61 9.967 2.301 1.816 2014 11.89 36.43 8.899 1.862 1.52 2015 12.15 6.372 2.088 0.637 0.369 2016 16.87 27.5 7.158 2.445 1.686 2017 166.9 11.45 1.559 0.558 0.381 2018 16.25 11.35 2.295 0.782 0.549 2019 16.57 18.25 2.667 0.911 0.644 2020 14.05 33.36 7.254 1.883 1.423 p a g e | 28 www.americanjournal.org american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 the mediating role of the work life quality in enhancing the relationship between marketing ambidexterity and strategic niche ahmed muhammadridha abdulrasool* ahmed.mohmmed@uokerbala.edu.iq orcid: 0000-0001-6217-4565 taicir moalla loukil** taicir.loukil@fsegs.usf.tn ahmed abdullah amanah*** ahmed.a@uokerbala.edu.iq orcid: 0000-0001-5092-391x corresponding author: ahmed abdullah amanah *faculty of physical education & sports sciences, kerbala university, iraq. ** faculty of economics and management sciences. sfax university, tunisia. ***faculty of administration and economics, kerbala university, iraq. a b s t r a c t k e y w o r d s the importance of the current study was demonstrated by the possibility of addressing the administrative problems and obstacles that the iraqi sports league suffers from by introducing administrative approaches that enhance the position of its sports clubs at the strategic level, by providing an encouraging work climate to achieve sporting achievements, which in turn requires intensifying the marketing activities supporting them, which work to sustaining its success in the iraqi environment and launching regionally and then globally . the study aimed to test the mediating role of the work life quality (wlq) in enhancing the relationship between marketing ambidexterity (ma) and the strategic niche (sn) of iraqi sports clubs. the ministry of youth and sports was chosen as an applied field for the study, by distributing a questionnaire that included (300) respondents from the administrative, scientific, and training leaders of the directorates affiliated with the ministry, as well as about the boards of directors of iraqi sports clubs. a five-point laser scale was used, and in order to conduct descriptive and analytical tests of the respondents’ data, the programs (spss, amos) and the (sobel) test were relied upon to ensure the significance of the mediation of the work life quality. one of the most important results reached is the presence of an effective mediating role for marketing ambidexterity, work life quality, strategic niche, exploration, exploitation, sports clubs, iraq. http://www.americanjournal.org/ mailto:ahmed.mohmmed@uokerbala.edu.iq mailto:taicir.loukil@fsegs.usf.tn mailto:ahmed.a@uokerbala.edu.iq american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 29 www.americanjournal.org the work life quality in enhancing the relationship between marketing ambidexterity and strategic niche, according to the study sample’s point of view. one of the most important conclusions reached is that adopting the marketing ambidexterity approach has an effective impact on enhancing the strategic niche of the sports clubs in the study sample in light of the growing competition in the iraqi sports sector, and therefore there is a need to employ the mediating role of the work life quality in enhancing the positive relationship between marketing ambidexterity and strategic niche, in line with providing new training services and consultations that add value to these clubs. introduction today’s work environment has become a threat to the sn of any organization, regardless of its size, activity, or any other standard of survival and sustainability, due to the continuous changes and increasing cases of environmental uncertainty, as well as the effects that cannot be predicted and prepared for, such as the repercussions of the corona pandemic that has afflicted the world collect paralysis. hence, the role of the wlq in enhancing the sn of organizations is highlighted. thus, contemporary organizations need to enhance their exploratory and exploitative activities towards available and future opportunities efficiently, effectively, and with ma, enhanced by wlq practices that sustain the organization’s success and its strategic orientation in its business sector. the wlq is one of the important variables that aims to achieve job satisfaction and the well-being of employees while striving to achieve a balance between work and personal life under safe and healthy working conditions and low stress. in addition, the world today is witnessing many intellectual, social and economic complexities and differences in visions and cultures, and under this shadow complexity. it was necessary for organizations to think about how to follow modern organizational methods that would raise employees’ financial and psychological returns. ma was one of the methods that helped in this new trend, which is one of the topics of marketing management and market research that is compatible with these complexities and developments that have occurred and will occur. in the future. the concept of sn is one of the modern administrative concepts that contribute to achieving the organization’s goals efficiently, which confirms its importance in the life of organizations and their continuity, which in turn leads to developing the performance of the organization as a whole. organizations that want to achieve a distinguished sn tend to pay attention to the wlq. developing and developing marketing capabilities to achieve its goals with a high level of efficiency and effectiveness. thus, the study included conducting statistical tests on a sample of managers in the ministry of youth and sports and its affiliated directorates, as well as members of the iraqi sports club councils, to identify the most prominent indicators of accepting or rejecting the study’s hypotheses, answering the questions of the study’s problem, and determining the impact of ma with its dimensions in enhancing the sn. for the organization through intermediate indicators of the wlq. the study concluded with a set of conclusions that determined the nature of the relationship and influence between the independent and dependent variables and concluded with a set of appropriate recommendations that could benefit researchers and stakeholders in this field. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 30 www.americanjournal.org literature review marketing ambidexterity (ma( it is the organization's ability to adopt an investment strategy that enables it to challenge and confront competitive pressures, reduce their negative effects, and enhance economic growth (vila et al., 2015). it is defined as a combination of exploration and investment activities with scarce resources, marketing, and dynamic capabilities necessary to build marketing performance to achieve strategic goals (josephson et al., 2015(. while (martin et al., 2019) suggests that the successful management of ambidexterity depends on creating an organizational context in which extension and discipline interact, and its characteristics are extension, discipline, support, and trust. when these four characteristics are combined in an organization, its performance will be high, and it creates two contexts of excellence performance management and social support. it is defined as preserving and unifying the specific marketing image and the meanings associated with it across time and place (moussa & barnier, 2020(. in addition, it has a dual and balanced focus towards simultaneous exploration and exploitation across marketing activities including product design, promotion, segmentation, and targeting (osiyevskyy et al., 2020(. it also represents the endeavor to invest current resources, explore new possibilities, and reconcile operations that focus on the organization’s investment of its resources to enhance its competitive position, and exploration that focuses on new opportunities in the future. benefiting from current competencies and exploring future capabilities in marketing activities to achieve outstanding performance (freihat,2020). the topic of organizational ambidexterity has received more attention in recent years, as successful organizations rely in all their fields on knowledge, science, and strategy to face challenges, focus, follow-up, innovation, and exploitation, which is the positive link of organizational ambidexterity to exploitation and exploration activities (amjad & nor, 2020). it indicates that successful organizations need to exploit current opportunities to achieve efficiency while at the same time exploring new opportunities to achieve innovation (magnusson et al., 2020( organizations also need administrative competence to deal with these methods effectively, and they also need qualified individuals, that is, with experience and talents, for the purpose of dealing with the tensions that arise between the goals of competition and the allocation of resources (christmas, 2020(. from the above, we can define ma procedurally as the (marketing ability that revolves around exploring the external environment and exploiting available opportunities, in addition to investing in internal resources and knowledge to achieve superior performance and maintain a competitive position. this requires acquiring new knowledge, analyzing the environment, forecasting future opportunities, as well as taking advantage of organizational resources and capabilities. available, it is a strategic advantage necessary for sustainable growth and success in the modern business environment, and this ability enables organizations to outperform competitors and stand out). work life quality (wlq) it is defined as the degree to which employees are able to comprehensively meet various personal needs that are important for their performance in their workplace while achieving the organization's goals (ki-joon, 2015). chanana & gupta (2016) defined it as including employees who have the ability to make valuable contributions to the organization and pioneer the ability to improve. easton & vin (2018) stated that it consists of multiple activities practiced by the organization in order to http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 31 www.americanjournal.org develop and advance the career, which reflects positively on improving the performance of the two employees and leads to increasing their productivity. it is defined as the totality of organizational inputs that seek to achieve employee satisfaction and enhance organizational effectiveness by developing the job, working conditions, and economic recovery (habeeb & rashmi, 2018) it is also one of the organization's methods through which it ensures the safety of workers instead of focusing on daily work aspects (babjohn et al., 2019(. it is also a process that enhances employees’ readiness to contribute optimally towards achieving their personal goals along with organizational goals (rita et al., 2020(. susilaningsih et al., (2021) also defined it as the state in which individuals feel satisfied with their personal and work needs through their participation in their work environment. in terms of the importance of the quality of work life (chanan & gupta, 2016) explained its importance in the sustainable development of employees in several areas of individual development, namely the quality of personal life on the job, the development of work teams, and personal and environmental relations. it is one of the techniques that contribute to the progress of organizations if they provide several factors, such as motivation, job satisfaction, responsibility, and commitment to work. the quality of work life is applied in the organization by providing a more democratic workplace that encourages the direct participation of employees in decision-making, which... reverse changes in most aspects of the organization, but its main impact contributes to improving productivity (salimi & seaidian,2015). rao et al., (2018) stated that it contributes to the process of organizing a workplace that enables workers at all levels to actively participate in shaping the organization’s environment, methods, and results. it appeared to end exploitation and injustice by the owners. it is an indication of how society can be liberated from exploitation. by providing good quality of working life, one can eliminate exploitation, injustice, inequality, oppression and restrictions ensuring continuous growth of human resources which in turn leads to their comprehensive development. akter et al., (2019) stated that it contributes to reducing conflict between employees and management, by building a more positive work environment, creating a good work climate, and striving to solve all the problems that employees suffer from. it also works to increase loyalty and belonging to the organization, create reassurance, and achieve balancing personal goals and the organization’s goals, as well as improving and supporting human relations in the organization, contributing to reducing turnover rates as well as investing human resources optimally. ehido et al., (2019) added that it affects the interrelationships between the work environment and the external environment, as it is related to the employees’ relationship with the employer, in addition to its connection to job well-being and reflects satisfaction and freedom from stress when sharing work. from the above literature review, we can define the wlq procedurally as (a set of events, operations, and coordinated programs that each organization is looking for the purpose of providing them to employees in order to increase production, achieve employee satisfaction, improve work, and deepen belonging and loyalty to the organization). strategic niche (sn( raven (2006) pointed out that it is the most appropriate tool for supporting societal innovations and working to make them more sustainable. loorbach & van raak (2007) indicated that its main idea revolves around the use of new technology and social processes that lead to the stimulation and development of participants, which leads to new results and more sustainable patterns of organization. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 32 www.americanjournal.org the sn literature has focused on understanding early adoption of new technologies with high potential to contribute to sustainable development. a core assumption of the sn approach was that sustainable innovation mobility can be facilitated by modifying technological domains, that is, protected spaces that allow for care and experimentation with the co-evolution of technology, user practices, and organizational structures (schot & geels, 2008(. it is a marketing strategy to differentiate products offered to a specific group of customers by focusing on a specific group of needs that the organization best meets (toften & hammervoll, 2010( . toften & hammervoll (2010) mentioned that it is the strategy that is used to distinguish products that are provided to a limited group of customers, whether they are goods or services. it is characterized by focusing on a group of needs that can be best met by customers. on the other hand, (wheelen, 2012) believes that it is usually suitable for large organizations that are able to meet the demand at the present time, and therefore competing organizations try to enter the market in order to obtain an appropriate market share in order to maintain their survival. karama (2013) stated that it is a method that carries a fundamental idea that stipulates the introduction of radical innovations, whether social, economic, or even environmental, into operations. this is a long and complex process and includes a high possibility of failure, although the use of new technology may be considered promising. stiles (2020) defined it as a clear effort to support the development of emerging technologies that offer a more sustainable alternative to existing technological systems. in terms of its importance, cuthbert (2011) showed that it emerges when the size of the organization and its purchasing power is large, and it achieves profit and creates barriers to the entry of competitors, and this reflects well on its work environment, as it has an attractive place that reduces competition. this requires providing the necessary resources to maintain its sustainability. witkamp et al., (2010) believe that its importance appears through the technological position that the organization possesses, which is based on a group of partial or radical innovations that help create new rules and practices that lead to the development of the organization and increase its creativity and thus reduce risks. which it can be exposed to within the market and increase its performance, and this development process establishes new rules for the organization and increases its stability. its importance is also embodied in the fact that it helps organizations find characteristics that make systems very useful, as they represent the means that helps local organizations compete and carry out creative experiments that can guide performance and activities in a way that leads to the organization being distinguished and reaching the stage of stability. the goal of the strategic positioning experience is to reduce risk, improve performance, focus on future development and creativity, and find new rules or ways to solve problems or implement processes (witkamp et al., 2011( . cuthbert (2011) pointed out that it is attractive, and is considered a mechanism to limit competition, and thus requires many resources to maintain sustainability. it also determines where the organization is located compared to its counterparts in the industry, or is the organization’s ability to create value in a way that differs from its competitors (dimitrova, 2017(. rantala at al., (2020) stated that it supports new technological paths capable of penetrating prevailing socio-technical systems, destabilizing or replacing unsustainable technologies. from the above, we can define the sn procedurally as (the organization’s ability to enhance the goods or services it provides to the target market in a way that achieves a prestigious position among other organizations in its business sector in response to the constantly changing desires and needs of customers). http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 33 www.americanjournal.org methodology study problem and its questions the problem of the study, within its general framework, sheds light on the challenges of the corona virus globally, which has paralyzed all different businesses, causing major financial losses as well as losses in the lives of individuals, which necessitated finding new entrances to continue work again at an increasing pace, which is represented by ambidexterity. marketing ambidexterity that enhances creativity and innovation in the field of marketing for various fields, especially sports clubs and their players, and the extent to which the management of these clubs is aware of it. and its role in enhancing its strategic niche in light of these current competitive conditions and through the mediating role of the work life quality prevailing in the iraqi sports environment and its ability to face and overcome these challenges through its ingenious methods and tools in the field of marketing its players and sports clubs. the main question of the study is (what is the role of marketing ambidexterity in enhancing strategic niche through the mediating role of the work life quality?) and it is divided into a set of the following sub-questions: 1. what extent is the study sample aware of the variables of the current study (marketing ambidexterity, work life quality, strategic niche) and their sub-dimensions? 2. what is the nature of the relationship and influence between the variables of the current study (marketing ambidexterity, quality of work life, strategic niche) and its sub-dimensions? 3. do marketing ambidexterity and work life quality contribute to enhancing the strategic niche of iraqi sports clubs? 4. is there a mediating role for the work life quality that enhances the relationship between marketing ambidexterity and the strategic niche in iraqi sports clubs? study importance the significance of the study is to highlight the importance of adopting the elements of wlq within the management philosophy of iraqi sports clubs and their impact on the relationship between adopting the ma of distinguished players within the clubs of the study sample. and enhancing the sn of managing their sports clubs and strengthening the communication of fans to their favorite sports clubs in light of the current challenges imposed by the corona pandemic, not only in the iraqi environment, but also on the entire world. thus, the importance of the study is highlighted in how to enhance the strategic role of the position of sports organizations by adopting a brilliant marketing approach in implementing sports marketing activities at the level of players and club management alike, by realizing the importance of providing an appropriate climate that encourages the performance of tasks at a level of quality that achieves the effectiveness of implementing strategies and achieving specific competitive goals. study objectives 1. building a cognitive framework for the philosophy of the study topics (ma, wlq, and sn) and their sub-dimensions, by following the intellectual paths of solid administrative literature, rooting the knowledge it contains, then providing a conceptual foundation that describes the interpretive tendencies of those variables, and classifies the opinions of theorists regarding them according to the field of treatment. and their level of analysis of its contents and dimensions. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 34 www.americanjournal.org figure (1) : study model 2. establishing the logical relationship between the study’s main and subsidiary variables. this is achieved by scrutinizing and examining the knowledge accumulations related to the variables and extracting what establishes the intellectual and conceptual structure that logically supports and strengthens this relationship. 3. determining the extent of the study sample’s awareness of the concept of (ma , wlq and sn) and its dimensions in the iraqi sports environment. 4. testing correlations between study variables. 5. testing direct and indirect effect trends between study variables. 6. determine the extent to which the independent variable (ma) and the mediator (wlq) contribute to enhancing the dependent variable (sn). 7. providing a set of recommendations to the ministry and the management of sports clubs in light of the results of the study. study model and hypotheses the current study is a mediating effect model represented by the influential relationship between ma and sn through the mediating role of the wlq at the level of the iraqi ministry of youth and sports, and its affiliated sports club departments, and figure (1) showing its variables and the relationships between them, as follows: 1. there is a significant correlation between marketing ambidexterity with its dimensions and quality of work life. 2. there is a significant correlation between marketing ambidexterity with its dimensions and strategic niche. 3. there is a significant correlation between quality of work life with its dimensions and strategic niche. 4. there is a significant impact of marketing ambidexterity in its dimensions on quality of work life. 5. there is a significant impact of marketing ambidexterity in its dimensions on strategic niche. 6. there is a significant impact of quality of work life in its dimensions in strategic niche. 7. there is a significant impact of marketing ambidexterity in strategic niche through the mediator role of the quality of work life. quality of work life job security rewards and incentives teamwork a suitable work environment career development participate in decision-making supervision method marketing ambidexterity exploration exploitation strategic niche voicing and shaping expectations network formation learning processes http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 35 www.americanjournal.org study standards 1. marketing ambidexterity scale: the researchers tried to describe marketing ambidexterity through a set of dimensions, which came after processes of analysis and interpretation of all aspects related to it for the purpose of giving it an objective picture according to their vision of its content and content. they agreed on two main dimensions: (exploration prowess, investment prowess). based on the following: (he&wong,2004; prieto et al.,2007; prange&schlegelmilch,2009; li yong-hui&huang, jing-wen,2012; wei et al.,2013; adler&heckscher,2013; josephson et al.,2015; shahhoseinl&ramezani, 2015; nezakati&sharifirad,2015; tokgöz et al.,2016). this variable is measured by (10) items that obtained a cronbach’s alpha value of (0.921), which is an acceptable percentage in social-administrative studies. 2. work life quality scale: the opinions of researchers and writers have varied in defining the dimensions of quality of work life, but they agree on the most common and widely used as measures for this variable. in our current study, the researchers adopted the scale (al-ashrifi and al-dulaimi, 2013) to measure the quality of work life variable, as it is one of the most common measures that it is compatible with the sports environment of the current study population and includes (job security, rewards and incentives, work team, appropriate work environment, job development, participation in decision-making, and the method of supervision followed(. this variable is measured by (70) items that obtained a cronbach’s alpha value of (0.947), which is an acceptable percentage in social-administrative studies. 3. strategic niche scale: in measuring this variable, researchers have relied on a scale (vanheule et al., 2006; mourik & raven, 2012), which includes (visions and forming expectations, building social networks, and learning processes(. this variable is measured by (17) items that obtained a cronbach’s alpha value of (0.886), which is an acceptable percentage in social-administrative studies. the standards adopted to measure the three main study variables included twelve sub-dimensions that were measured in (97) items. study population & sample 1. study community: every study has a spatial community to which its results can be generalized and the future suggestions it finds have scientific benefit at the field level. thus, the iraqi ministry of youth and sports represents the community that can be identified spatially (spatial community). the administrative body is divided into (head of the administrative body, first vice president, second vice president, club secretary, financial secretary, team supervisor, team manager, social researcher, nutrition officer), while the technical body includes the following (team coach, first assistant coach, second assistant coach, goalkeeper coach, fitness coach, analyst, physician, physician assistant(. 2. study sample: to determine the type and size of the sample for the current study, the researcher took into account the service specificity that some previous studies brought about, taking into account that the rest of the variables do not conflict in their measurement with what the study will adopt in selecting its sample. thus, the current study sought to select a purposive sample of (300) respondents from general managers, directors of departments and divisions, and unit officials in the ministry, the study population, as well as members of the boards of directors of iraqi sports clubs. after the number of sample members has been determined, it is necessary http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 36 www.americanjournal.org to determine an accurate scientific description of their demographic characteristics and personal nature. data collection tools in preparing it, the researcher relied on the questionnaire form, which is the main tool in collecting data and information about the variables of the study. in formulating the questionnaire, consideration was given to its ability to diagnose and measure the main and sub-study variables. in preparing and determining it, the researcher relied on a set of solid ready-made standards (arab and foreign), in addition to benefiting from the opinions of experts and specialists in this field. in all questionnaire measures, a five-point likert scale was used, arranged from the phrase (i completely agree), which was given a weight of (5) to the phrase (i completely disagree), which was given a weight of (1) and with a response range of (5-1), noting that most of the questionnaire items are positive and some negative paragraphs with a reverse direction (1-5) were confirmed based on and guided by the opinions and observations provided by the experts and arbitrators. results description of the study variables and their sub-dimensions and correlation table (1) presents a description of the marketing ambidexterity variable. it obtained an overall weighted mean of (3.890) and was of a high level with a deviation of (0.771). this requires that the coefficient of variation reach (19.81%) and achieve relative interest (77.80%). of course this is the sample agreement confirms what the dimension includes at a high level at the level of the iraqi ministry of youth and sports, the study sample. as for the variable of work life quality, it obtained an overall weighted mean of (4.054) and was of a high level with a deviation of (0.365). this requires that the coefficient of variation reach (9.00%) and achieve relative interest (81.08%). naturally, this confirms the agreement. the sample includes what the dimension includes at a high level at the level of the iraqi ministry of youth and sports, the study sample. “it is clear from table (2) that the order of the sub-dimensions of the work life quality was as follows (career development, followed supervision method, participation in decision-making, team work, suitable work environment, job security, rewards and incentives) according to the answers of the sample in the iraqi ministry of youth and sports, the study sample. as for the strategic niche variable, it obtained an overall weighted mean of (4.114) and was of a high level with a deviation of (0.468). this requires that the coefficient of variation reach (11.38%) and achieve relative interest (82.28%). naturally, this confirms the agreement of the sample. on what the dimension includes at a high level at the level of the iraqi ministry of youth and sports, the study sample. it is clear from table (1) that the order of the sub-dimensions of the strategic niche was as follows (forming expectations and visions, learning processes, and building social networks) according to the answers of the sample in the iraqi ministry of youth and sports, the study sample. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 37 www.americanjournal.org table (1) / description results and correlation values variables descriptive analysis r dimensions m sd cv ri wlq sn 1 exploration 3.876 0.829 21.39 77.52 .526** .489** 2 investment 3.905 0.759 19.43 78.10 .413** .363** overall weighted mean of the ma variable 3.890 0.771 19.81 77.80 .623** .567** 1 job security 3.940 0.410 10.41 78.80 .484** 2 rewards and incentives 3.919 0.502 12.81 78.38 .418** 3 teamwork 4.070 0.444 10.90 81.40 .431** 4 suitable work environment 3.971 0.457 11.52 79.42 .441** 5 career development 4.256 0.511 11.99 85.12 .280** 6 participation in decision making 4.091 0.471 11.52 81.82 .296** 7 the method of supervision followed 4.132 0.553 13.39 82.64 .316** overall weighted mean of wlq variable 4.054 0.365 9.00 81.08 .637** 1 forming expectations and visions 4.195 0.509 12.12 83.90 2 building social networks 4.026 0.559 13.87 80.52 3 learning processes 4.122 0.520 12.62 82.44 overall weighted mean of the sn variable 4.114 0.468 11.38 82.28 on the other hand, it is clear from table (1) that a strong positive and significant correlation level was achieved between the independent variable (ma) and the mediating variable (wlq), as the level of the correlation coefficient here reached (0.623**) and this value is acceptable at a significant level (1%) and this proves a high confidence rate in the correlation results amounted to (99%), and this confirms the availability of a level of harmony between the two variables in the field, according to the sample’s answers at the level of the iraqi ministry of youth and sports, the study sample. processes and procedures for exploring opportunities and investing in them in the best possible way, relying on the expertise available in the ministry, deepening their understanding of the variables affecting its decisions and plans, and rationalizing the processes of attracting skilled players in various games with the aim of benefiting from their skills and investing them in a way that achieves the best environment and place for them to work. as can be seen from table (1), a strong positive and significant correlation level was achieved between the independent variable (ma) and the dependent variable (sn), as the level of the correlation coefficient here reached (0.567**), and this value is acceptable at a significant level (1%), and this proves a high level of confidence. the correlation results amounted to (99%), and this confirms the availability of a level of harmony between the two variables in the field, according to the sample answers at the level of the iraqi ministry of youth and sports, the study sample. this result can be explained by the fact that the more the ministry’s administration, the sample of the study, pays attention to its ingenious marketing activities and adopts advanced marketing strategies, http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 38 www.americanjournal.org especially with regard to marketing services and marketing relationships, in order to deal with team spirit, support social relations between employees, and enhance the efforts of players in harnessing their professional capabilities in supporting the ministry’s directions in achieving general goals. for the ministry, this in turn improves the level of the ministry’s strategic position. finally, it is clear from table (1) that a strong, positive and significant correlation level was achieved between the mediating variable, (wlq), and the dependent variable, (sn), as the level of the correlation coefficient here reached (0.637**), and this value is acceptable at a significant level (1%), and this proves a percentage of confidence. high correlation results of (99%), and this confirms the availability of a level of harmony between the two variables in the field according to the sample answers at the level of the iraqi ministry of youth and sports, the study sample. this result can be interpreted that the more the ministry’s administration, the sample of the study, pays attention to the dimensions of the (wlq) in terms of providing a safe and suitable environment for work based on trust, cooperation, helpful behavior with others, good citizenship, providing the necessary work requirements of infrastructure and material supplies, and supporting employees by allowing them to express their opinions and be heard. for their suggestions, paying attention to their efforts in solving problems, and treating them in a manner based on friendliness and sympathy, this would enhance the (sn) of the ministry. testing hypotheses it appears from figure (2) that the explanatory value of the coefficient of determination (r²) has achieved a high level of (38%). this confirms the size and level of change that occurs in the wlq, of which (38%) is due to changing ma, while it was the remainder of the explanation rate (62%) is due to the influence of other factors not included in the study. it also appears that the level of influence of the ma variable on the wlq was a good level, and this is indicated by the standard parameter index, as its value was (0.62) thus, the ma variable affects the wlq variable by (62%) at the level of the iraqi ministry of youth and sports, the study sample. the influence factor here is a significant value because the level of the (c.r.) indicator has achieved a very high level of moral significance through its extreme value. (11.703) at the level of significance (0.000), which is as shown in table (2). thus, a positive change of one unit from improving ma in the field at the level of the application environment will lead to an increase in the level of wlq by (62%). “in light of from the above, it is clear that there is a significant effect of the ma variable on the wlq at the level of the iraqi ministry of youth and sports, the study sample. figure (2): the effect of ma on the wlq http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 39 www.americanjournal.org table (2): paths and parameters for testing the effect of ma on the wlq paths s.r.w estimate s.e c.r p value ma wlq .620 .575 .049 11.703 *** ma  er .787 1.094 .058 18.891 *** ma  et .726 .906 .058 15.635 *** wlq  tw .607 .997 .088 11.301 *** wlq  we .599 .915 .083 11.063 *** wlq  jd .525 .874 .096 9.123 *** wlq  js .721 1.270 .082 15.418 *** wlq  sf .634 1.014 .084 12.132 *** wlq  ri .627 1.025 .086 11.911 *** wlq pdm .532 .906 .097 9.298 *** as shown in figure (3), the explanatory value of the coefficient of determination (r²) has achieved a high level of (32%). this confirms the size and level of change that occurs in the sn, of which (32%) is due to changing ma, while the remaining percentage of interpretation (68%) is due to the influence of other factors not included in the study. it also appears that the level of influence of the ma variable on sn was a good level, and this is indicated by the standard parameter index, as its value was (0.57) thus, the ma variable affects the sn variable by (57%) at the level of the iraqi ministry of youth and sports, the study sample. the influence factor here is considered a moral value because the level of the (c.r.) indicator has achieved a very high level of moral significance through its extreme value (10.179) at the level of significance (0.000), which is as shown in table (3). thus, a positive change of one unit of improving ma in the field at the level of the application environment will lead to an increase in the level of sn by (57%). in light of the above, it is clear that there is a significant effect of the ma variable on the sn at the level of the iraqi ministry of youth and sports, the study sample. figure (3): the effect of ma on sn http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 40 www.americanjournal.org table (3): paths and parameters for testing the effect of ma on sn paths s.r.w estimate s.e c.r p value ma  sn .567 .635 .062 10.179 *** ma  er .787 1.094 .058 18.891 *** ma  et .726 .906 .058 15.635 *** sn bsn .760 1.114 .064 17.289 *** sn fev .663 .904 .069 13.097 *** sn  lp .727 .982 .063 15.659 *** it appears from figure (4) that the explanatory value of the coefficient of determination (r²) has achieved a high level of (41%). this confirms the size and level of change that occurs in the sn, of which (41%) is due to a change in the wlq, while it was the remainder of the explanation rate (59%) is due to the influence of other factors not included in the study. it also appears that the level of influence of the wlq variable on the sn was a good level, and this is indicated by the standard parameter index, as its value was (0.64) thus, the variable of wlq affects the variable of sn by (64%) at the level of the iraqi ministry of youth and sports, the study sample. the influence factor here is considered a moral value because the level of the (c.r.) indicator has achieved a very high level of moral significance through its extreme value. (12.006) at the level of significance (0.000), which is as shown in table (4). thus, a positive change of one unit in improving the wlq in the field at the level of the application environment will lead to an increase in the level of sn by (64%). “in light of from the above, it is clear that there is a significant effect of the variable “wlq” on the sn at the level of the iraqi ministry of youth and sports, the study sample. figure (4): the effect of wlq on sn http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 41 www.americanjournal.org table (4): paths and parameters for testing the effect of wlq on sn paths s.r.w estimate s.e c.r p-value wlq  sn .630 .761 .063 12.006 *** wlq  tw .607 .997 .088 11.301 *** wlq  we .599 .915 .083 11.063 *** wlq  jd .525 .874 .096 9.123 *** wlq  js .721 1.270 .082 15.418 *** wlq  sf .634 1.014 .084 12.132 *** wlq  ri .627 1.025 .086 11.911 *** wlq  pdm .532 .906 .097 9.298 *** sn  bsn .760 1.114 .064 17.289 *** sn  fev .663 .904 .069 13.097 *** sn  lp .727 .982 .063 15.659 *** testing the indirect effect hypothesis is determined by what the test achieves in terms of standard regression paths and ratios (r²) for evaluating the direct and indirect relationship of the three study variables, that is, presenting an explanation of the direct effect between the independent variable (ma) and the dependent variable (sn) and the indirect effect through the mediating variable (wlq). it is clear from figure (5) that there is a direct positive effect of ma on the wlq, as the standard regression coefficient reached (0.62). it also became clear that there is a direct positive effect of the wlq on the sn, as the standard regression coefficient reached (0.46), while there is a direct effect of ma on the sn, as the standard regression coefficient reached (0.28), and all of these effects were significant percentages because the critical ratio (c.r) values shown in table (5) amounting to (11.794, 7.269, 4.338) respectively are values moral”. figure (5): the structural model for testing the seventh main hypothesis http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 42 www.americanjournal.org table (5): paths and parameters for testing the seventh main indirect effect hypothesis paths s.r.w estimat e s.e c.r p-value ma wlq .623 .568 .048 11.794 *** ma  sn .277 .311 .072 4.338 *** wlq  sn .465 .571 .079 7.269 *** thus, we note that the value of the indirect effect is deduced through the two paths in which the mediating variable, wlq, mediates between the independent variable, ma, and the dependent variable, sn. thus, the indirect effect reached (0.290), and this is what appeared in table (6), and thus it is clear that the total direct effect the indirect rate reached (0.277). as it is clear from figure (5) and table (6), the value of the interpretation coefficient (r2) for the sn reached (0.45), which means that the changes that enhance the sn are due to the change in the value of ma and the wlq by (45%) the remaining percentage (55%) is due to the influence of other variables not included in the study model”. table (6): direct and indirect effect paths for the seventh main hypothesis paths direct effect indirect effect total effect r2 ma  sn .2770 .5670 .450 ma  wlq  sn 0.290 to test the moral significance of the results of the indirect effect of the independent variable (ma) on the dependent variable (sn) through the mediating variable (wlq), the sobel test was relied upon, through which the significance of the indirect effect introduced by the variable can be confirmed. mediator . the value of (sobel test) can be reached through a computer program that depends on the value of four basic parameters, as shown in table (7(. table (7): sobel test results model in put sobel value p-value ma  sn a = 0.568 ma  wlq  sn b = 0.571 sa = 0.048 6.168 0.000 sb = 0.079 it is clear from table (7) that the p-value was significant, and this confirms the moral significance of the results of testing the indirect effect of ma on sn through the mediating variable, wlq, at the level of the iraqi ministry of youth and sports, the study sample. thus, the researchers answered all the questions of the study, achieved all its objectives and hypotheses, proved its model, and became a measured and applied model in the iraqi environment within the sports sector. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 43 www.americanjournal.org conclusions 1. the importance of marketing ambidexterity is evident through the two dimensions of exploring and investing in real talent that helps sports clubs move the sporting reality forward. 2. club management is highly aware of the variable of marketing ambidexterity, and this is evident through its focus on introducing mechanisms to develop and improve its services to remain as long as possible in sports fields and competitions. 3. club management strives to exploit marketing opportunities, the most important of which is related to improving marketing activities and services to create value. 4. it was found that the marketing ambidexterity variable contributed to enriching the dependent variable, strategic niche, through its sub-dimensions. 5. it turned out that the level of importance of the marketing ambidexterity variable was at “moderate” levels, and these results indicate a fairly good level of agreement among the members of the sample studied. this indicates some shortcomings in the practice of marketing activities provided by the clubs and their need to enhance interest in exploration and investment operations. for marketing opportunities. 6. the individuals in the study sample had a positive attitude towards the fact of the existence of a suitable work environment, as it is clear that sports clubs have a fair focus on activities and policies that can enhance the requirements of the training environment that must be available to achieve success in their field of work despite the surrounding obstacles and the lack of financial allocations. however, the current situation did not prevent the club management from working as much as possible to provide a work environment of acceptable quality. 7. the results of the description of the dimensions of the work life quality variable showed that individuals have a high level of perception of the extent of club management’s interest in respecting and appreciating what they provide in implementing work requirements. there is also a moderate level of conviction in the appropriate conditions for doing work and achieving psychological stability, and thus they have a strategy to achieve a balance between what is required of them at work and what is required by the nature of their family and social lives, and this is generally reflected in a feeling of lack of psychological and physical pressure at work and thus lower levels of stress, which achieves a good level of interaction and performance. 8. the work life quality contributes to modifying the relationship between marketing ambidexterity behaviors and strategic niche in a positive direction, meaning that the availability of the requirements of the appropriate physical environment for work in the club is reflected positively in improving the role of the availability of behaviors adopted by leadership within the framework of effective interaction in bringing about a positive change in the level of performance among individuals. . 9. it was found that the variable of work life quality contributed to enriching the dependent variable, strategic quality, through its sub-dimensions. 10. the work life quality variable plays a mediating role in strengthening the relationship between adopting exploratory and investment marketing ambidexterity behaviors and building the strategic niche of iraqi sports clubs through its sub-dimensions that contributed to enriching that relationship as a whole. http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 44 www.americanjournal.org 11. the strategic niche starts from forming expectations and expressing the level of capabilities and capabilities of iraqi sports clubs, and it may be ambiguous. then that strategic niche is integrated when those visions are combined among those interested to form a high and accurate value. 12. the strategic niche has come to be seen as a fundamentally dynamic concept, and it is located in the area sandwiched between two contradictory concepts: change and stability. therefore, if an organization desires to achieve a lead over its competitors in an environment characterized by continuous change, this requires it to express expectations and future narratives that touch upon the desires and wishes of its society and her fans. 13. social networks work to enhance the strategic niche of sports clubs in society by mobilizing community support and creating a general climate that helps their departments participate and allows the expression of expectations and visions regarding the social networking activities they practice. 14. organizations’ view of the strategic niche is positive, with competition and distinction, but others see it as an obstacle, and this means that they are far from their local communities, which confirms the need for them to pay attention to the strategic direction through integration and interconnection between leadership and the strategic niche, in a way that contributes to drawing up a strategic direction. for club administrations. 15. the possibility of combining social networks and shaping expectations for organizations in the clubs sampled by the study appears to be the correct path in directing the strategies adopted by decision makers by spreading creative and cognitive awareness among its employees and society to find new opportunities and innovative solutions to existing problems to reach effective competitiveness that contributes to their exit. from the scope of its local environment to an international scope. recommendations 1. it is necessary to focus on adopting the combined dimensions of marketing ambidexterity, as they lead to strengthening the strategic niche of iraqi sports clubs in the local market by activating all their capabilities, resources and capabilities for this purpose. 2. it is necessary to be aware of good investment of human and technological resources within the clubs investigated and to try to exert the best efforts of the operating departments by taking real measures to achieve levels of marketing ambidexterity by exploring favorable opportunities and strengths and exploiting what exists on the ground and managing it for the benefit of all parties. 3. enhancing the exploration of opportunities with the aim of preparing and adapting to volatile changes. this is done through the interest of the club management in directing towards the use of advanced methods to explore external opportunities, so that the club has the ability to continuously adapt to impose its survival for the longest possible period. various marketing methods must be used to help attract financiers and advertisers alike. 4. h. improving the investment of opportunities with the aim of using the club’s capabilities to reconsider the external challenges that affect the exploitation of opportunities, by providing services that are distinguished by a high level. 5. club management should pay more attention to the work life quality by realizing its dimensions in the work environment in a way that enhances the achievement of teamwork in it, especially http://www.americanjournal.org/ american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 45 www.americanjournal.org focusing on the dimension of the supervision method followed, since it did not achieve its role in enhancing the strategic position from the sample’s point of view. 6. the need to focus on participating in decision-making in the work environment by involving employees in decision-making and meetings and adopting their creative ideas and implementing them in a way that enhances the team performance in the club and the study community. 7. clubs should encourage their employees to raise their morale and reduce work pressures in order to improve job performance and provide a suitable climate that increases job satisfaction. 8. the need to focus on adopting all dimensions of work life quality, as they lead to strengthening the company’s strategic niche in the local market by activating all its capabilities, resources and capabilities for this purpose. 9. the need to focus on strengthening the dimensions of the strategic niche through communicating with members of iraqi society as potential supporters and making effective use of learning from the work environment and previous mistakes to strategically advance its local and global position. 10. the necessity of building an effective communication network between club management, staff and players, and examining the possibility of adopting proposed solutions to problems and addressing them in order to avoid them in the future. 11. obstacles related to overlapping powers and bureaucracy that hinder employees’ work, speed of response, and flexibility in action must be overcome. 12. it is important for club administrations to be aware that a strategic niche is more necessary than an obligation imposed by competitive challenges, and this requires motivating their administrations to increase their capabilities, capabilities, resources, and expertise to face challenges, achieve sporting achievements, and reach a prominent strategic niche. 13. the departments should conduct a quarterly and periodic evaluation to determine the level of their position in their local and international markets to avoid falling behind the leading clubs, which will lead to improving our competitive capabilities. 14. activating the role of social networks and supporting them financially and morally and making them a major source for building a distinctive position for clubs and being a vital part and artery for expressing the values, ideas, directions and principles of clubs towards their community and customers in their work environment. 15. in order for clubs to improve their strategic niche, they must combine their increased interest in marketing ambidexterity with an increase in their interest in the work life quality, which supports each other in the overall effect. references 1. afthanorhan, w. a. 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(2019). abc of response process validation and face validity index calculation. resource, 11(3). http://www.americanjournal.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 265 www.americanjournal.org some aspects of the impact of algorithmic systems on the overall tax competitiveness index in taxation issues sh.v. ganiyev international school of finance technology and science, professor b. b. ibragimov international school of finance technology and science, phd a b s t r a c t k e y w o r d s research carried out by the international center for tax and development (ictd) has shown that only 23% of developing countries have approved a strategy for digitalization and development of tax administration. but in the context of the digital economy, the issues of improving the elements of tax administration are poorly studied as a holistic system in the direction of automation and digital transformation, as a scientific study. the purpose of the study is to develop proposals for improving the organizational elements of tax administration and increasing the level of cooperation between taxpayers and tax authorities. tax administration, taxes, index, algorithmic introduction in a period when production and service are currently recognized as an important organizing factor in the country's economic development, the regulation of relations between state bodies and entrepreneurs-taxpayers and the development of new approaches to this relationship has become the essence of the main content of aspects aimed at the issues of budget-tax policy of fiscal reforms carried out in the country. research carried out by the international center for tax and development (ictd) has shown that only 23% of developing countries have approved a strategy for digitalization and development of tax administration1. the very low rate indicates the need to carry out research that requires a systematic approach in matters of improving tax administration. last year, 8 trillion sums were not provided to the budget for dividends and tax payments by some state-owned enterprises in uzbekistan. tax revenues in syrdarya and jizzakh regions increased by 20 1 ictd american journal of business management, economics and banking volume 23 april 2024 p a g e | 266 www.americanjournal.org percent, while in bukhara and kashkadarya this figure did not reach 7 percent2. president sh.m. mirziyayev noted, “the heads and deputies of the regional tax department show that the work of the taxpayers in the neighborhood is slow. therefore, this system was revised and new directions were established”3. discussion much attention is paid to improving the effectiveness of tax administration in ensuring sustainable socio-economic development in uzbekistan. problems such as shortcomings in the control system over the formation of transfer prices, incomplete functioning of the tax monitoring mechanism and low levels of “tax stability” of taxpayers negatively affect the effectiveness of tax administration. the relevance of the topic of research is determined by the fact that, as a result of scientific research on improving the effectiveness of tax administration instruments, in a word, achieving a result of significant social and economic significance in the content of “taxation is effective”. the study of the issues of strengthening cooperation with taxpayers in increasing the efficiency of debt collection, promoting the expansion of tax monitoring coverage, strengthening cooperation in tax policy, liberalization of the punishment system for tax offenses, and the use of fiscal instruments in reducing the size of the hidden economy are important tasks for improving tax administration. through the improvement of tax administration, scientific research on the optimal implementation of the state budget-tax policy, the achievement of sustainable growth of the economy and employment of the population, the legalization of the activities of the hidden economic sector and the correct distribution of income is carried out in the world's leading universities and scientific centers4. literature review issues of regulation of tax relations a.timur, a.smith, d.ricardo, u.petty, a.laffer, t.gobbs, p.samuelson, y.fisher, k.mcconnell, n.menkyu, s.brue, w.belostotskaya, s.barulin, y.kirova, y.egorova, d.chernik, t.yutkina, v.titov, l.min, d.yum is also explored in his classical works5. 2 https://president.uz/oz/lists/view/6971 3 https://president.uz/oz/lists/view/6971 4organisation for economic cooperation and development; the international centre for tax and development, ictd; institute for fiscal studies; the center for advanced research in finance, carf; japan international cooperation agency; the korea institute of public finance, koreya; the university of faisalabad; centre international de formation européenne (cife) 5a.temur «temur tuzuklari», t.: o’zbekiston.2011y. 143b., а.смит. «исследования о природе ипричинах богатства народов» м. 1935й т-2 588-589 б., макконнелл к., брю с. экономика. принципы, проблемы и политика. –м.: республика, 1992. – 972 с.; балацкий е. лафферовы эффекты и финансовые критерии экономической деятельности // мэимо.–м., 1997.–№11.–с. 31-43; мэнкью н.г. принципы экономики.–спб: питер ком, 1999.– с. 356; петти у. трактат о налогах и сборах. слово мудрым. разное о деньгах. – м: ось-89, 1997.– с. 346; рикардо д. начала политической экономии и налогового обложения. сочинения, том i. государственное издательство политической литературы.–м., 1955.–с. 360; самуэльсон п.а., нордхаус в.д. экономика: пер. с англ.–15-е изд. – м: бином-кнорус, 1999. –с.800; белостоцкая в.а. системный подход к измерению налоговой нагрузки//финансы. – м., 2003. –№336. –37с.; кирова е.а. методология определения налоговой нагрузки на хозяйствующие субьекты //финансы.–м., 1998. –№9.–с. 30-32; титов в.в. влияние налоговой системы на эффективность деятельности предприятия//финансы. – м, 2006.–№2. –с. 42-46; черник д.г. налоги. 4-е издание.–м.: финансы и статистика, 2000.–с. 430 american journal of business management, economics and banking volume 23 april 2024 p a g e | 267 www.americanjournal.org also, the problems of improving tax administration has also been studied in the studies a.vahobov, sh.toshmatov, a.altiyev, m.almardonov, a.jo ' rayev, t.malikov, b.israilov, o.abdurakhmanov, b.toshmurodova, k.yahyayev, n.khaydarov, b.azimov, n.kuzieva and et al6. but in the context of the digital economy, the issues of improving the elements of tax administration are poorly studied as a holistic system in the direction of automation and digital transformation, as a scientific study. integration and globalization of the economy and digitization processes in the countries of the world require the improvement of tax administration in accordance with the new economic conditions. the purpose of the study is to develop proposals for improving the organizational elements of tax administration and increasing the level of cooperation between taxpayers and tax authorities. recent technological advances in various fields are changing decision-making processes. there is increasing evidence that various algorithmic systems can support, serve, or even replace human decisions in public administration7 (könig and wenzelburger, 2021) and taxation (huang, 2018). the term algorithmic management has become increasingly popular in recent times, although the concept of algorithmic management has been treated differently in different contexts (katzenbach and ulbricht, 2019). both scientists and practitioners advocate the use of algorithms in management. danaher et al. (2017) even stated that “we [already] live in an age of algorithms, where mathematics and informatics combine with powerful new methods to influence, shape, and guide our behavior and our society management”. the main problems that arise when using algorithms in management can be formulated in the following aspects. the opacity of algorithmic operations: this problem is rarely presented as a “black box”, implying that automated processes in taxation are complex and difficult to explain for learning (cath, 2018). corinne cath, sandra wachter, brent mittelstadt and luciano floridi are based on artificial intelligence, the system or at the heart of the emergence of new problems and “calls” associated with decisions made by an automated system “various effect of a large database” or algorithmic damage8, social justice issues lay down. given the wide impact of this, these current issues can only be successfully resolved from an interdisciplinary point of view. the concept of algorithmic justice has not yet been given significant importance in taxation issues, as long as “algorithmic justice” is considered as one of the possible mechanisms for increasing transparency and accountability. in europe, for example, the idea of the “right to explain” algorithmic solutions are discussed. these right gives individuals the right to explain if the algorithm makes a decision for them (for example, refusal to issue a loan). however, this right has not yet been guaranteed. in addition, the question of how we interpret a” perfect algorithmic explanation” and how these explanations can be incorporated into their automated systems remains open9. 6ibragimov. b.b. improvement of methodologia of tax administration the topic of doctoral dissertation (dsc).– t., 2024.– 7 b 7m. milosavljevic et al. what drives the performance of tax administrations? evidence from selected european countries. economic modelling 121 (2023) 106217. 8as a result of the tax audit conducted by the tashkent city tax department, the system has poured into confusion in the accounting books carried out by the automated system. it is not possible to disclose this information within the framework of the lawyer's secret. 9 cath, c., 2018. governing artificial intelligence: ethical, legal and technical opportunities and challenges. phil. trans. math. phys. eng. sci. 376 (2133), 20180080 https://doi.org/10.1098/rsta.2018.0080. coglianese, c., lehr, d., 2019. transparency and algorithmic governance. adm. law rev. 71 (1), 1–56. american journal of business management, economics and banking volume 23 april 2024 p a g e | 268 www.americanjournal.org the table below shows the international tax competitiveness index in the cross section of some countries in 2023. table 1. 2023 international tax competitiveness index rankings country overall rank overall score estonia 1 100 latvia 2 88,5 new zealand 3 86,1 switzerland 4 84,7 czech republic 5 81,2 luxembourg 6 78,9 turkey 7 78,6 israel 8 78,3 lithuania 9 76,6 australia 10 75,9 hungary 11 75 slovak republic 12 74,3 sweden 13 73,3 netherlands 14 70,6 canada 15 69,8 slovenia 16 66,6 norway 17 66,6 germany 18 66,6 finland 19 66,5 austria 20 65,3 united states 21 65 costa rica 22 64,8 korea 23 61,6 japan 24 61,5 greece 25 61,4 mexico 26 60,1 belgium 27 60 ireland 28 58,9 denmark 29 58,5 united kingdom 30 56,1 spain 31 55,8 iceland 32 55,5 poland 33 55,3 portugal 34 52,1 chile 35 50,5 france 36 49,1 conclusion in our approach, this index should be relevant in which areas the main goals in the tax strategy in the countries where the digital tax transformation is carried out are focused. in a word, the operation of american journal of business management, economics and banking volume 23 april 2024 p a g e | 269 www.americanjournal.org automated systems in what state should also be involved as a key factor in the tax competitiveness index. the scientific significance of the research results is reflected in the fact that the conclusions and proposals developed in the work provide opportunities for improving the organizational foundations of tax administration. the practical significance of the results of the study is explained by the fact that the formation of conclusions that serve to increase the level of survival of taxpayers and improve the interaction activities of tax authorities and taxpayers can be used in tax reforms in accordance with the requirements of the period. references 1. milosavljevic. m. et al. what drives the performance of tax administrations? evidence from selected european countries. economic modelling 121 (2023) 106217. 2. cath, c., 2018. governing artificial intelligence: ethical, legal and technical opportunities and challenges. phil. trans. math. phys. eng. sci. 376 (2133), 20180080 https://doi.org/10.1098/rsta.2018.0080. 3. coglianese, c., lehr, d., 2019. transparency and algorithmic governance. adm. law rev. 71 (1), 1–56. 4. ibragimov. b.b. improvement of methodologia of tax administration the topic of doctoral dissertation (dsc).– t., 2024.– 81 p 5. ictd report 2022 // ictd.com 6. speech of the president of republic of uzbekistan // https://president.uz/oz/lists/view/6971 7. jasurbek yusupov, et al. defining the vat fraud company by using regression model. economics and innovative technologies. 11.5. 2023. 227-236 pp. https://president.uz/oz/lists/view/6971 https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/399 american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 40 www.americanjournal.org voluntary disclosure and firm value of quoted conglomerates in nigeria dilosi dawn a., dr egbe solomon, prof. ogbonna gabriel n. department of accounting, university of port harcourt, choba, rivers state, nigeria a b s t r a c t k e y w o r d s this research work will be exploring how voluntary disclosure affects firm value of quoted conglomerates in nigeria. in this research study, firm value was defined in terms of accounting policies and information on governance while firm value was measured using tobin q. this examination embraced an ex-post facto research design using secondary data of quoted conglomerates in nigeria from 2012-2016, an aggregate of 3 conglomerates were incorporated into this study, the analysis were obtained using the ordinary least square method, descriptive statistics and also pearson correlation coefficient. the outcomes demonstrated that voluntary disclosure has no huge association with firm value of conglomerates, it was concluded that voluntary disclosure is not sufficient to measure firm value of conglomerates i.e a rise in firm value of conglomerates is not necessarily determined by voluntary disclosure or a rise in voluntary disclosure would not necessitate an increase in firm value and it was also recommended that conglomerates should pay attention to other factors that would greatly affect either positively or negatively their value and help them maximize shareholders wealth. voluntary disclosure, firm value, accounting policies, information on governance, tobin q. introduction a common goal amongst most firms is to make profit. this is even more critical for public firms as they face the additional task of guaranteeing that the shareholders’ wealth is adequately maximized as the rise and fall of the firm is largely dependent on its ability to perform the above responsibilities. a firm can only access funds and remain in business when its market profile is high and its value is one that any investor would be attracted to. firm value is the perception of a company’s investors in regards to the ability of its managers to foresee and react to future changes in the company's economic environment (healy and palepu, 2000). to remain relevant and excel in the dynamic nature of the business environment, a firm must ensure that it remains competitive. it becomes essential to critically consider factors that may influence firm’s value. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 41 www.americanjournal.org a major avenue through which present and potential investors of a firm usually get information about the firm is via its annual reports. disclosure of relevant information by firms is necessary and also serves as an effective way of maintaining and restoring the confidence of present and potential investors and other users of the financial information. this is quite necessary due to the recent scandals that rocked the corporate world and subsequently led to financial crisis that could have been prevented through comprehensive and transparent financial reporting (jankensgård, hoffmann, and rahmat, 2014; shehata, 2014). disclosure is defined as the communication of economic information, whether financial or nonfinancial, quantitative or otherwise concerning a firm’s financial position and performance (owusuansah, 1998). disclosure comes in two forms namely; forced (mandatory) disclosure and voluntary disclosure. while mandatory information is disclosed to meet certain legal requirements, relevant standards (such as ias 1) and regulating bodies, voluntary disclosure is information (mostly nonfinancial) that is additionally given. this information may include strategies, policies and processes (beretta and bozzolan, 2004). according to the cadbury report (1992), increase in disclosed information by companies gives rise to an increase in their securities value. statement of the problem corporate reports are prepared to provide to a extensive range of users such as shareholders, management, employees, suppliers, creditors, financial analysts, tax authorities and government agencies (abunassar and rutherford, 1996; alrazeen and karbhari, 2004; abdallah, 2014) material information useful in decision-making processes (harahap, 2003). despite the aforementioned fact, firms are consistently either folding up, declaring themselves bankrupt or losing their value due to fall in their share prices caused by a reduction in the number shareholders. so the question still remains, apart from the mandated information requirements by the law, are there other information that the users of these annual reports seek that determines their future participation in these firms? are there decisions that these firms need take to boost their value? although numerous academic research have been conducted on voluntary disclosure practices and its relationship with firm value and characteristics of firms, yet many of these were carried out in developed countries. the few conducted in third world countries such as nigeria have not considered voluntary disclosure on firm value of conglomerates especially in the post-ifrs implementation period using only financial performance alone is not healthy as financial performance uses accounting based approach which in itself is a backward-looking approach. it is therefore necessary to utilize a forwardlooking approach to ensure that the going concern concept is not neglected and the past performance and future outcomes can both be synergized to help the firm in determining its value. a conglomerate is the combination of two or more corporations engaged in entirely different businesses that fall under one corporate group, usually involving a parent company and many subsidiaries. according to a report by (egwuatu, 2016), the banking and conglomerates sub-sectors in september 2016 boosted turnover by 85.83%. considering the fact conglomerates include companies that cut across several sectors, it is paramount that their disclosures and their effects on firm value are critically looked into. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 42 www.americanjournal.org research hypothesis h01: there is no significant relationship between accounting policies and tobinq of conglomerates in nigeria. h02: there is no significant relationship between information on governance and tobinq of conglomerates in nigeria. theoretical framework an adequate number of theories exist that provide reasons why companies through their management would embark on voluntary disclosure practices. i. agency theory: this theory happens to be a standout amongst the most common theories used to clarify management behaviour and voluntary disclosure. this theory gained prominence in 1976. in this theory, the firm’s management is called to as the ‘agent’ while the investors are called the ‘principal’. jensen and meckling (1976) define an agency relationship as a contractual agreement where a person(s) (that is the principal) employ/ engage another person (agent) by delegating authority for decision making to the agent whose major responsibility is to carry out some service(s) on behalf of the principal(s). this means that both parties enter this agreement based on different personal interests. this theory postulates that the major cause of information asymmetry is the consistent existence of conflicting interests between these two parties. this in turn gives rise to agency costs (watts and zimmerman, 1979). information asymmetry occurs when the agent due to familiarity with the operations in the company has more information about the true state of the company than the principal. agency theory seeks to explain and provide solutions to the conflicting interests that exist between the principal (shareholders) and the agent (management) as they seek to protect their own personal interest. ii. capital need theory: is a theory that postulates that the major reason why managers disclose information voluntarily is because it gives them the advantage of raising investment at a lower capital cost from both old and new investors. this helps companies to maintain a healthy and consistent demand for shares with a liquid market as far as these disclosures are done continually (craven and marston, 1999). meanwhile, cooke (1989) posits that the greater the disclosed additional information, the higher the intrinsic value of the firm as investors uncertainty about the firm’s future profits is reduced and investors have a reason to reduce the rate of return. schuster and o'connell (2006) also assert that voluntary disclosure will considerably improve a company’s credibility among market participants. voluntary information disclosure has a threefold capital market effect increase in shares liquidity in the stock market; decrease in financing costs (soltani, 2000).attribution theory: disclosed information is classified under this theory as either “good”, “bad”, or “neutral”. linsley and shrives, (2006), beretta and bozzolan, (2004) and puga (2012) assert that companies try to either retain or boost their reputation in the markets by shifting the blame for bad things that occur in the company to events beyond their control and good things attributed to their personal abilities in controlling risks. since disclosure of risk is voluntary, this is done (by directors) to clarify bad news in such a way that it would look positive to protect their self interest against future blame arising from previously disclosed bad news (kongprajya, 2010). iii. signalling theory: the signalling theory is another theory developed to deal with the issue of information asymmetry. as earlier mentioned information asymmetry occurs when managers have american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 43 www.americanjournal.org more information about the company and its products than both the company’s investors and clients. with the investors and clients possessing imperfect information about the company, the chances that the company might lose them is quite high as they( the investors and clients) may out of wrong assumptions place high value on a company with similar products. signalling theory therefore posits that it is normal for a company with better products, projects and goals to signal the market and its participants through the disclosure of “good news” about its performance. this it does in order to distinguish itself from another company in the same industry whose products, projects and goals are average compared to its own. this action is advantageous in three ways; for khlifi and bouri (2010) information asymmetry between the company and its investors is reduced and sometimes eliminated depending on the level of disclosed information, the shareholders confidence in the future performance of the company is retained and boosted and the share price of the company will not be undervalued (inchausti, 1997). iv. stakeholder theory: this theory is hinged on the fact that an firm does not stand on its own because for it to remain existent, it must relate with various groups both inside and outside itself. since such relationships can be affected by the decisions of both parties, the firm will on its own part try to consider the effect of its decision on these groups (employees, clients, suppliers, dealers, host communities and the nation) while still embarking on its goals and objectives (johnson, 1971). these groups are referred to as the stakeholders. according to donaldson and preston (1995) and obalola (2008), stakeholder theory has three forms or stages; a) instrumental stakeholder which focuses on the firm balancing both the interests of maximizing profit and building/ maintaining a cordial relationship with its stakeholders, b) normative which focuses on the firm’s management ethical duties to its stakeholders and, c) descriptive stakeholder expatiates on the actual behaviour of managers, entities and stakeholders. v. legitimacy theory: under this theory, entities can only define what is right or wrong based on the norms and beliefs of the society in which they carry out their operations. therefore the perceptions of the society determine the firm’s legitimacy (o'donovan, 2002). according to newson and deegan (2002), these perceptions can either be implied or expressly stated and most times these perceptions are subject to change by the society ( (brown and deegan, 1998). abdellah (2014) states that if an firm does not function within the perceptions of the society within which it operates, the resultant effect will be that the society may take actions that might be detrimental to the firm’s continual existence. the benefits of legitimacy for entities as expressed by ivanova and castellano (2010) and (suchman, 1995) are they can easily access funds for continuous operations and there would be visible growth both in the stability and the comprehensibility of the firm’s activities. conceptual framework the concept of voluntary disclosure companies in nigeria generally prepare their financial statements based on the demands of the international accounting standards board (iasb) and the financial reporting council of nigeria (frcn). according to schuster and o’connell (2006), investors are not satisfied with the information disclosed in the financial statements prepared using these standards. this is the real reason for information asymmetry and the resultant effect is that investors would begin to lose confidence in these reports leading to a decline in investments they make and a rise in the capital cost of the firms. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 44 www.americanjournal.org information is needed by investors so they are conversant with the timing and fluctuations that surround present and future cash flows to assist them make rational investment decisions (meek, robert, and gray, 1995). it is at this point that voluntary disclosure is necessary. voluntary disclosure goes a step further to provide investors with information that are not mandated by the standards but which are also necessary for the investors’ consumption. for healy and palepu (2000), some reasons why firms voluntarily disclose information includes; 1. capital market transactions 2. corporate control contests 3. stock compensation 4. litigation 5. proprietary costs and 6. management talent signaling the advantages as listed by sexena, dube, and mishra (2016) includes a. it protects investors interest b. it gives room for better corporate governance c. firms get to have better risk assessment d. reduction in costs associated with capital e. the firm’s image and reputation is improved f. investors get to make better portfolio management decisions g. it facilitates financial market’s efficiency h. reduction in information asymmetry i. reduction in adverse selection by investors with the above benefits of voluntary disclosure accruing to firms, it would be important to mention that firms who only focus on disclosing mandated information would be better off if they begin to consider disclosing other information not mandated by regulatory bodies. accounting policies as a proxy of voluntary disclosure for alayemi (2015), accounting policies refers bases, rules, principles, conventions and procedures used in preparing and presenting annual financial statements. gietzmann and trombetta (2000) posit that accounting policy choice is a competing source of information that assists investors to form beliefs about the firm. they also argue that firms would usually disclose accounting policy choice information more voluntarily especially if the accounting policy choice tends to be hostile in comparison to the previous one used by the firm. firms would do this to dissuade their investors from any form of suspicion. for many researchers (such as holthausen & leftwich,1983 and hand & skantz, 1998), accounting policy disclosure can also be used as a signalling instrument for firms. voluntary disclosure of accounting policy occurs when a firm decides to disclose significant accounting policy that is not required specifically by ifrs. the mandatory disclosure requirements for accounting policies can be found in ias 8 but others based on ifrs, ias and sic requirements include: ⚫ insurance contracts (ifrs 4) ⚫ exploration for and evaluation of mineral resources (ifrs 6) ⚫ fair value measurement (ifrs 13) for the international accounting standards, the basic disclosure requirements for accounting american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 45 www.americanjournal.org policies are: ⚫ inventories (ias 2) ⚫ statement of cash flows (ias 7) ⚫ construction contracts (ias 11) ⚫ property, plant and equipment (ias 16) ⚫ revenue (ias 18) ⚫ accounting for government grants and disclosure of government assistance (ias 20) ⚫ separate financial statement (ias 27) ⚫ intangible assets (ias 38) ⚫ investment property (ias 40) for the standards interpretation committee, only one requirement is mandated for accounting policy disclosure found in sic 27 (evaluating the substance of transactions involving the legal form of a lease). the only requirement for firms is that they should disclose the accounting treatment used in treating any fee received in the legal form of a lease arrangement that does not, in substance, involve a lease under ias 17. it can be argued at this point that there seems to be no room for voluntary disclosure as the international standards virtually expect mandatory disclosures on almost all aspects. but for critical accounting policy choices on marketable securities, impairments, contingencies, revenue recognition and taxes, disclosure are voluntary than mandated. according to herdman (2002) a critical accounting policy (cap) is one in which the accounting estimate requires assumptions about issues that are exceedingly unverifiable at the time the accounting estimate is made and different estimates that sensibly could have been utilized or changes in those estimates are probably going to happen from period to period would substantially affect the presentation of financial condition or results of operations of the firm. voluntary disclosure tends to come more easily for firms who would secure this as an opportunity to reduce information asymmetry and litigation risks. information on governance according to cadbury (1992), corporate governance refers to a framework by which organizations are coordinated and controlled. information on governance refers to the disclosure of certain information as related to the activities that give an overall picture of the established system upon which the directors of a company and employees in general function so as to achieve the firm’s goals and also provide room for transparency and fairness in its dealings with all its stakeholders. it is no news that corporate governance recently has pulled attention to itself and consequently this led to continuous recommendations on codes of best practices, conceptual models and research (bhasin, 2013). this is because the success of any organization lies in its corporate governance practices. labelle (2002) believes that issues related to corporate governance are so important that firms would most likely use information about them for what he calls “impression management.” collett and hrasky (2005) argue that the two reasons why firms disclose information related to governance are; first to reduce information asymmetry which would in turn reduce cost of external capital financing and second in situations where firm performance is poor, information disclosure is done to increase firm valuation and to explain the poor performance and prevent job loss of management staff. this argument was also posited by other researchers such as asx corporate governance council (2003), macdonald (1995) and sauer (1996). general information disclosed under corporate governance disclosures include board american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 46 www.americanjournal.org of directors balance and renumeration, risk management, meetings,going-concern reporting, formation of committees and compliance reports of the committees, cg initiatives and internal controls. garko (2016) posits that an effective board of directors is the center of the governance structure of a well-functioning and well-governed corporation, acting as the ultimate internal monitor. some factors that can either impede or cause progress in the governing process of a firm are. i. board composition a board in the corporate world refers to a group of selected individuals appointed by the shareholders of a firm whose responsibility to direct the daily operations of the firm. for the board to effectively fulfill its stewardship role, the board should possess the required skills and competence effectively manage different business issues, review and challenge management performance. it should be of adequate size and be committed to fulfilling its responsibilities. a board usually comprises of both outside (non-executive) directors and inside (executive) directors. for hermalin and weisbach (1991), agency problems can be reduced through the help of corporate governance as it has been observed by several researchers such as fama and jensen (1983) and forker(1992) that non-executive directors usually have a better monitoring ability over management and as such effect the quality of financial disclosure done by firms. according to kurawa and kabara (2014), it is probably upon this premise that the nigerian code of corporate governance recommends a board size of between five to fifteen comprising executive and non-executive directors. ii. role duality under role duality, an individual holds two roles the chief executive officer and the chairman of the board. on all grounds, this is totally unhealthy for any firm, as molz (1988) asserts that this can limit the board from adequately monitoring, disciplining and compensating the senior managers. in extreme cases, the ceo can become unnecessarily bossy and opportunistic due to his dual roles and at the same time he/she can biased towards management at the expense of the shareholders thereby giving room to agency problems. to prevent this from occurring, the 2003 securities and exchange commission code of corporate governance recommends that different persons should be appointed for the position of chairman and ceo. in situations where this is inevitable, a strong and independent non-executive independent director should be made vice chairman (kurawa and kabara, 2014). firm value: the concept a firm’s value is the perception of a company’s investors in regards to the ability of its managers to foresee and react to future changes in the company's economic environment (healy and palepu, 2000). previous researchers applied proxies such as net sales, profit, fixed assets, dividend pay-out ratio, cost of capital, the classical accounting variables such as return on equity and stock market indicators such as ratio of market value of shares to the book value of shares, price/earnings ratio, stock market price and tobin q to define firm value. but in this study, firm value is limited to tobin q. difference between firm value and firm performance firm performance is a leading catalyst of firm value. firm performance though a complex term can be referred to as the cumulative of employee output towards the production and all other processes embarked on by an organization which could give either a positive or negative outcome. it reflects how american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 47 www.americanjournal.org a company’s operations are efficiently and adequately done. a firm performance is the actual output of a firm when compared to its expected output. for richard, devinney, yip, and johnson (2009), firm performance can be categorised as i.financial performance ii.product market performance iii.shareholder returns however, firm value refers to the perception of a company’s investors in regards to the ability of its managers to foresee and react to future changes in the company's economic environment (healy and palepu, 2000). this means that the better a firm’s performance, the better its value and vice versa. tobin q it is the proportion of the market value of a firm (as estimated by the market value of its equity) to the replacement cost of the firm’s assets (tobin, 1969). it is hinged on the idea that if a firm is worth more than its value in light of what it would cost to remake it, and then excess profits are being earned. a tobin's q proportion more noteworthy than 1 shows that the firm has done well with its speculation choices i.e. it has put resources into positive net present value ventures, interestingly, an estimation of tobin's q lower than 1 shows that the firm did not gain its all-inclusive cost of capital with its speculation venture (drobetz, 2003). in contrast, a firm with a tobinq proportion less than one (otherwise called an undervalued firm), would be alluring to corporate bandits or potential buyers, as they may want to purchase the firm rather than setting-up a similar one. consequently, this would increase interest in the firm, prompting an expansion its stock price, and then an increase in its tobinq ratio. firms with a ratio higher than one (overvalued firms), would have increased competition as ratio higher than one means that a firm procuring a rate higher than its replacement cost, which would cause people or different firms to fire up comparative kinds of organizations to get a portion of the profits. this would bring down the current firm's market shares; cause a fall in its market price and a decrease in its tobinq ratio. a merit of utilizing tobinq is that the troublesome issue of evaluating either rate of return or marginal costs is prevented. the conglomerates industry in nigeria a conglomerate refers to refers to a large corporation that runs as a single business, but consists of several firms (generally acquired through mergers or takeovers) that offer different kind of goods or services. often, a conglomerate may be involved in nearly every sector of an economy. for example, the six quoted conglomerates in nigeria have interests across the economy from real estate to manufacturing, automobile, hotel, general trade and merchandise, power, agriculture and services among other sectors.this means that when a person invests in a conglomerate, he invests in practically almost all sectors of the economy. egwuatu (2016) clearly states that the banking and conglomerates sub-sectors on the nigerian stock exchange (nse) in the first week of september 2016 boosted the stock market turnover by 85.83%. this means also means that the conglomerates sub sector plays a major role in contributing to the nigerian economy. the quoted conglomerates on the nse include; i. a.g leventis nigeria plc ii. chellarams plc iii. john holt plc iv. s.c.o.a nigeria plc american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 48 www.americanjournal.org v. transnational corporation of nigeria plc vi. uacn plc empirical review of literature mukhtar, kantudu and samaila (2016) conducted a research on the effects of corporate social responsibility disclosure on value of listed conglomerate firms in nigeria. the study used secondary data sourced from annual reports and accounts of sampled conglomerates. the data was analyzed by means of descriptive statistics, correlation and regression analysis (pooled ols, fixed effect and random effect using stata version 12). the results showed that corporate social responsibility (csr) disclosure on community involvement, employee relations and environmental concern have positive and significant impact on value of firms in the nigerian conglomerate industry. however, the research also revealed that csr disclosure on consumer/product quality has negative effects on the value of sample firms. the study concluded that csr disclosure is key in determining a firms’ value in the industry. the study finally advised that management of conglomerate firms should increase the level of disclosure on community involvement, employee relations and environmental concern given the enormity of higher level of these disclosures on the firms’ value. oyerogba (2014) conducted a research on the use of voluntary disclosure in determining the quality of financial statements among the listed companies in nigeria. the study streamlined its research to consider the effects of voluntary disclosure on investor decision and performance of listed companies in nigeria. using an exploratory design and collecting primary data, the study population included all the 258 listed companies in nigeria. the respondents consisted of accountants, external auditors and users of accounting information (financial analysts, stockbrokers, bankers, regulators and educators). the study sample size was 140 where twenty questionnaires were distributed in every category of the respondents. these measures were calculated using statistical package for the social sciences (spss 20) software. the results revealed that there was increased performance, and investor decision making was easy with adequate voluntary disclosure of information. the study therefore concluded that voluntary disclosure was statistically significant in explaining investors’ decision and performance of listed companies in nigeria. fodio, abu-abdissamad and oba (2013) used regression models to examine the impact of corporate social responsibility (csr) on market value of 35 financial services firms in nigeria for the period 2004 – 2008. they used firm size, leverage, growth and dividend payment as control variables and came to a conclusion that there is a positive impact of csr proxies (human resource management and community development used in the research) on market value. nekhili, boubaker and lakhal (2012) examined the impact of voluntary research and development (randd) disclosure on french firms’ market value, and whether it is influenced by ownership structure. using a sample of 84 french listed firms over the 2000-2004 period, and developing an randd disclosure index comprising of 32 hand-collected items from annual reports. their findings revealed that voluntary randd disclosure improves the market value of equity, suggesting that the benefits from disclosures of randd activities is higher than the disclosure costs and that family and institutional investor-firms are more likely to withhold randd information. oba (2009) examined the relationship between corporate social responsibility and market value. the study used a multiple regression model to explain the impact of corporate social responsibility on market value of quoted conglomerates in nigeria for the period 20012006. the model used community american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 49 www.americanjournal.org social responsibility, human resource management, charitable contribution and firm size as independent variables in order to predict market value as represented by tobin’s equity q. the study showed that the independent variables have significant aggregate impact on market value. the research showed that the independent variables have significant total impact on market value. the study also disclosed an insignificant connection between community social responsibility, human resource management and market value. on the other hand, charitable contributions were found to have a negative impact on market value of quoted conglomerates while firm size was found to have a significant role in the csrmarket value relationship. methodology the population for the study comprises of all six conglomerates listed in the nse as at 31st dec, 2016. these companies are; a.g. leventis nig plc, chellarams plc, john holt plc, scoa nig. plc, uacn and transnational corporation of nigeria.the research design for this study is the expost facto design using a time series. it is a research design based on events that have already occurred. the time series uses same variables that are measured and the measurements are taken at different points in time. the time series is used because according to collis and hussey (2003), it enables the researcher to quantitatively examine changing processes within a social, economic and political background. to determine the study sample, the researcher used a four -point filter. first, for any firm to qualify as a member of the sample it must have been in operation between the periods 2012 -2016, must not have been being delisted on the nigerian stock exchange within the study period, must have their reports up to date and must have adopted ifrs reporting standards in preparing its 2012 annual reports. on applying the four filters, all the listed conglomerates except chellarams plc, john holt plc and scoa nig plc met the requirements and therefore the other three conglomerates (ag leventis, transcorp and uacn) constitute the sample of the study. measures of variables in this research, voluntary disclosure refers to the disclosure of non-financial information in the annual reports of a firm as it relates to accounting policies and corporate governance. measuring voluntary disclosure is usually based on a self-constructed disclosure index which is widely used in collecting data to measure the extent of disclosed information in annual reports. this method is widely seen in disclosure literature such as chow and wong-boren (1987), raffournier (1995), meek, robert and gray (1995), inchausti (1997) etc. the checklist consist of twenty seven items as expressed by abdallah(2014) though some items were eliminated while others were specifically chosen by the researcher and then the items were grouped. a scoring sheet for each annual report was prepared. each disclosure item was unweighted in the index, consistent with cooke (1989), owusuansah (1998).this is because the unweighted method assumes that all information items are perceived to be equally important to all user groups. consequently, to quantify the amount of voluntary disclosure a binary coding scheme was utilized in which the appearance of each disclosure item scores one (1) point and the non-appearance of each disclosure item scores zero (0) point. subsequently, one point was designated to each of the 27 disclosure items that the companies provide through their yearly reports, whereas each firm could achieve a maximum of 24 points. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 50 www.americanjournal.org table 1: voluntary disclosure index items 1: accounting policies 1 accounting valuation of fixed assets (e.g., fair value or historical cost) 2 the depreciation methods used 3 foreign currency transactions, translation and differences treatment 4 events after the balance sheet date 5 disclosure of accounting standards used 6 statements of compliance with approved ifrs/iass 7 treatment of tax 8 treatment of contingent liabilities. 2: corporate governance 9 chairman of the board identified 10 list of board members 11 disclosure information on board members’ qualifications and experience 12 duties of board of members 13 list of senior managers (not on the board of members)/ senior management structure 14 disclosure information on senior managers’ qualifications and experience 15 managers’ engagement/directorship of other companies 16 picture of all senior managers/ board of members 17 picture of chairperson 18 information about changes in board members 19 classification of managers as executive or outsider 20 details of senior managers and board of members remuneration 21 statement of percentage of total shares of 20 largest shareholders 22 a review of shareholders by type 23 number of shares held by managers 24 company policy on employee training 25 number of board of members meetings held and date 26 list of audit committee 27 chairman’s statement tobinq: is calculated as the ratio of stock market value to the total assets of the firm. nature and sources of data secondary data would be utilized. relevant data will be extracted from the firms via the nse fact books for the relevant periods under this study and the websites of the firms studied. model specification first, the functional expression of the model is y = f(x1, x2) where y = dependent variables x1, x2 = independent variables therefore; tq = f (ap, ig) ………………..……..i american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 51 www.americanjournal.org the mathematical form is expressed as y = a+bx. thus, the following three models are specified for the mathematical model tq = a + b (ap)………………………. ii tq = a + b (ig) …………...................iii we further expand equations ii and iii to form an econometric model below tq = βo + β1 ap + β2 cg + 𝑒t ……… iv where; tq = tobin q ap = accounting policy ig = information on governance βo = constant term β1β2 = coefficient of the parameter estimates e = error term t = period of time from the above models, the prior expectation is that an increase in ap to increase tq cg to increase tq data analysis descriptive statistics, pearson correlation, and multiple regressions of ordinary least square are used to analyze the data. test of hypotheses hypotheses 1: accounting policies has no significant relationship with tobinq of conglomerates in nigeria. table 3 anovaa model sum of squares df mean square f sig. 1 regression .023 1 .023 3.799 .073b residual .079 13 .006 total .102 14 a. dependent variable: tobin q b. predictors: (constant), accounting policies table 2: model summary model r r square adjusted r square std. error of the estimate 1 .476a .226 .167 .07774 a. predictors: (constant), accounting policies american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 52 www.americanjournal.org table 4 coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 1.093 .327 3.342 .005 accounting policies -.007 .003 -.476 -1.949 .073 a. dependent variable: tobin q judging from the regression tables (tables 2, 3 & 4) above, accounting policies (beta = -.476 t= -1.949 sig.= .073) has an inverse relationship with tobinq and was not significant at 0.05% level. the null hypothesis was accepted. the study concluded that accounting policies has no significant relationship with tobinq of conglomerates in nigeria. hypotheses 2: information on governance has no significant relationship with tobinq of conglomerates in nigeria. table 5 model summary model r r square adjusted r square std. error of the estimate 1 .023a .001 -.076 .08835 a. predictors: (constant), information on governance table 6 anovaa model sum of squares df mean square f sig. 1 regression .000 1 .000 .007 .935b residual .101 13 .008 total .102 14 a. dependent variable: tobin q b. predictors: (constant), information on governance table 7 coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) .514 .689 .746 .469 information on governance -.001 .008 -.023 -.083 .935 a. dependent variable: tobin q american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 53 www.americanjournal.org the result indicated from tables 5, 6 and 7 that information on governance (beta = -.023 t = -.083 sig. = .935) negatively and insignificantly affect tobinq because the 0.935 is greater than 0.05% significant level. the null hypothesis was accepted. the study finalizes that information on governance has no significant relationship with tobinq of conglomerates in nigeria. discussion of findings this research work shows similar results with oba (2009) who carried out a research on the relationship between corporate social responsibility and market value agrees also with this research. he concluded that human resource management as a proxy of corporate social responsibility which is also a variable of voluntary disclosure has no significant relationship with tobinq. barako (2007) researched on the determinants of voluntary disclosures in kenyan companies annual reports and came to a conclusion that no link exists between organizations’ disclosures and their financial performance. conclusion from the hypotheses tested, the results showed: 1. accounting policies has no significant relationship with tobinq of conglomerates in nigeria. 2. information on governance has no significant relationship with tobinq of conglomerates in nigeria the findings revealed that there was no significant relationship between voluntary disclosure and firm value of quoted conglomerates in nigeria. recommendations 1. voluntary disclosure of non-financial items as used in this research (such as accounting policies and information on governance) seems to have no effect on firm value, other voluntary disclosure items that have financial values should be considered. 2. since an increase in firm value of conglomerates is not necessarily determined by voluntary disclosure, conglomerates should pay attention to other factors that would greatly affect either positively or negatively their value and help them maximize shareholders’ wealth. such factors may include research and development intensity (technology), firm characteristics (image, size etc.), ownership concentration etc. 3. the government should liaise with the private sector by encouraging them to focus on activities that would improve their firm value. references 1. abdallah, h. (2014). an evaluation of voluntary disclosure in the annual reports of commercial banks: empirical evidence from libya. (doctoral thesis). university of sallford, salford, uk. 2. abed, s., roberts, c., & hussainey, k. (2014). managers’ incentives for issuing cash flow forecasts. international journal of accounting, auditing and performance evaluation, 10(2), 133– 152. 3. barako, d. g. (2006). factors influencing voluntary corporate disclosure by kenyan companies. corporate governance: an international review, 14(2), 107-125 4. barako, d. (2007). determinants of voluntary disclosures in kenyan companies annual reports. african journal of business management, 13-28. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 54 www.americanjournal.org 5. beretta, s., & bozzolan, s. (2004). a framework for the analysis of firm risk communication. the international journal of accounting, 39(3), 265-288. 6. cadbury, r. (1992). committee on the financial aspects of corporate governance. london: gee publishing. 7. campbell, d., shrives, p., & saager, h.b. (2001). voluntary disclosure of mission statements in corporate annual reports: signaling what and to whom? business and society review, 106(1), 65– 87. 8. carroll, a. b. (1979). a three-dimensional conceptual model of corporate performance. academy of management review, 4(4), 497–505. 9. core, j. (2001). a review of the empirical disclosure literature: discussion. journal of accounting and economics, 31(1/3) , 441–456. 10. deegan, c. (2002). introduction: the legitimising effect of social and environmental disclosures — a theoretical foundation. accounting, auditing & accountability journal, 15(3), 282–311. 11. deegan, c., & unerman, j. (2006). financial accounting theory: european edition. mcgraw‐ hill education. 12. dhani, i., & utama, a. (2017). the effect of company growth, capital structure, and profitability on firm value. journal of business research and accounting airlangga university, 2(1). 13. egwuatu, p. (2016). nigeria: banking, conglomerates boost stock market turnover by 85.8%. retrieved january 10, 2017, from sweetcrudereports: http://sweetcrudereports.com/2016/09/12/nigeria-banking-conglomerates-boost-stock-marketturnover-by-85-8/ 14. fodio, m., abu-abdissamad, a., & oba, v. (2013). corporate social responsibility and firm value in quoted nigerian financial services. international journal of finance and accounting, 2(3), 331-340. 15. garko, j. (2016). board structure and voluntary disclosure of listed industrial goods companies in nigeria. ican 2nd annual international academic conference proceedings on accountting and finance, (pp. 422-434). ikeja, lagos. 16. gietzmann, m. b., & trombetta, m. (2000). disclosure interactions: accounting policy choice and voluntary disclosure effects on the cost of capital. 17. healy, p., & palepu, k. (2001). information asymmetry, corporate disclosure and the capital markets: a review of the empirical disclosure literature. journal of accounting and economics, 3, 405-440. 18. herdman, r. k. (2002). critical accounting and critical disclosures. speech by robert k. herdman, chief accountant, u.s. securities and exchange commission, at financial executives international san diego chapter, annual sec update. san diego. 19. hermalin, b., & weisbach, m. (1991). the effects of board composition and direct incentives on firm performance. financial management, winter, 101-112. 20. iasb. (2004). international financial reporting standards (ifrss). uk: iascf. 21. ct of globalization on legitimacy signals: the case of organizations in transition environments. baltic journal of management, 6(1), 105-123. 22. jankensgård, h., hoffmann, k., & rahmat, d. (2014). derivative usage, risk disclosure, and firm value. journal of accounting and finance, 14(5), 159-174. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 55 www.americanjournal.org 23. jensen, m., & meckling, w. (1976). theory of the firm: managerial behaviour agency costs and ownership structure. journal of financial economics, 3, 305-360. 24. johnson, h. (1971). business in contemporary society: framework and issues. belmont, ca: wadsworth. 25. jones, d. (2007). voluntary disclosure in randd-intensive industries. contemporary accounting research, 24, 489-522. 26. labelle, r. (2002). the statement of corporate governance practices (scgp): a voluntary disclosure and corporate governance perspective. hec montreal working paper. 27. leftwich, r. w., watts, r. l., & zimmerman, j. l. (1981). voluntary corporate disclosure: the case of interim reporting. journal of accounting research, 19, 50–77. 28. meek, g., robert, c., & gray, s. (1995). factors influencing voluntary annual report disclosures by us, uk and continental european multi national corporations. journal of international business studies, 26(3), 555-572. 29. mukhtar, j., kantudu, a., & samaila, i. (2016). corporate social responsibility disclosure and value of conglomerate firms in nigeria. ican academic conference proceedings, (pp. 877 892). lagos. 30. nekhili, m., boubaker, s., & lakhal, f. (2012). ownership structure, voluntary randd disclosure and market value of firms: the french case. international journal of business, 17(2),, 126-140. 31. oba, v. (2009). impact of corporate social responsibility on market value of quoted 32. owusuansah, s. (1998). the impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in zimbabwe. the international journal of accounting, 33(5),, 605–631. 33. oyerogba, e. o. (2014). the use of voluntary disclosure in determiniing the quality of financial statements: evidence from the nigerian listed companies. serbian journal of management, 9(2), 263-280. 34. umoren, o. (2009). accounting disclosures and corporate charactristics: evidence from 62 non-financial listed firms in nigerian stock exchange. (thesis paper). covenant university, ota, ogun state, nigeria. 35. verrecchia, r. (1983). discretionary disclosure. journal of accounting and economics, 5, 365380. 36. watts, r., & zimmerman, j. (1979). the demand for and supply of accounting theories: the market for excuses. the accounting review, 54 (2), 273-306. 37. wikipedia. (2017). conglomerate. retrieved from wikipedia, the free encyclopedia: https://en.wikipedia.org/wiki/conglomerate_(company) 38. worldbank. (2004). report on the observance of standards and codes (rosc) in nigeria, accounting and auditing. retrieved december 10, 2016, from http://www.worldbank.org/ifa/rosc_aa_nga.pdf. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 154 www.americanjournal.org the profit of the banking sector phd gafurova azizakhon fatixovna a b s t r a c t k e y w o r d s this article discusses the principles of banking, income generation, expenses, as well as making a profit. the statistical data of the banking sector have been studied. bank, profitability, income, expense, profitability coefficients, profitability indicators. introduction making a profit is the main goal of any commercial company. the ways to achieve it depend on the specifics of the business. companies produce different products, differ in the number of employees and other parameters. "profit [profit, gain] is the difference between the revenue from the sale of products and services received by an economic entity (for example, a firm, an enterprise) and the total costs of their production".1 "profit is the difference in the value of net assets at the end and at the beginning of the period, for a certain period of production activity, adjusted, if necessary, for the amounts withdrawn or added by the owners".2 "profit or loss is the total amount of income less expenses, excluding components of other comprehensive income".3 profit maximization is a process aimed at obtaining the highest possible income. revenue depends on the current situation in the company. an entrepreneur must take into account various factors: total costs, purchasing power, etc. the profit of commercial banks is formed due to the excess of their income over expenses. profit is usually divided into gross, corresponding to the difference between total income and expenses before taxes, and net profit. the basis of the gross profit of commercial banks is interest payments on loans provided. at the same time, revenues from non-traditional operations for commercial banks, which include securities transactions, trust and consulting services, commission and intermediary operations, financial audits and much more, have begun to grow rapidly in recent years. a relatively small part of the revenue comes from settlement fees. 1 economic and mathematical dictionary: dictionary of modern economics. — m.: delo. l. i. lopatnikov. 2003. 2 business. explanatory dictionary. — m.: "infra-m", publishing house "the whole world". graham betts, barry brindley, s. williams, et al. general edition: doctor of economics osadchaya i.m. 1998. 3 international financial reporting standard (ias) 1 "presentation of financial statements" american journal of business management, economics and banking volume 24 may 2024 p a g e | 155 www.americanjournal.org the gross profit of the bank is formed after deducting the amount of current expenses from gross operating income. approximately half of all banking costs are for the payment of interest on deposits, the rest of the costs are other interest payments, wages, deductions to reserves in case of non-repayment of loans and other operating expenses. net profit is formed after paying all taxes on their gross profit and, in turn, is divided into distributable, that is, paid to the bank's shareholders as annual dividends on their shares, and capitalized, directed to increase the bank's equity and reserves. the further expansion of the bank's operations, the increase in its capital and reserves depend entirely on the level of profit in the future. at the same time, it is not so much the absolute amount of net profit received by the bank that matters, as its ratio to a number of indicators of the bank's balance sheet. the traditional indicators of profitability are (figure №1): figure № 1. traditional profitability indicators. each of these indicators characterizes only certain aspects of banking activity – a complete picture of the profitability of the bank is given by a data system that includes all the indicators listed above. let's look at the profit of the banking sector using the example of 2023.4 figure №2. indicators of profitability of the banking sector. 4 cbu statistics data were used https://cbu.uz/ru/statistics/bankstats/1710883/ 1) the ratio of net profit to total assets, which indicates the effectiveness of the bank's work and is most often used to compare the level of profitability of banks; 2) the ratio of net profit to equity and reserves (to the total amount of paid-up equity, reserve funds and collateral for doubtful debts), reflecting the degree of efficiency of using own funds invested in current activities; 3) profit per share on average, calculated as the ratio of the amount of book profit to the number of shares issued (the amount of profit in all cases is calculated before taxes). indicators of profitability of the banking sector. american journal of business management, economics and banking volume 24 may 2024 p a g e | 156 www.americanjournal.org according to the data, it can be seen that interest income for 2023 amounted to 25,528 billion sums, and in 2024 34,558. expenses for 2023 are 16,606, for 2024 24,074. revenues significantly exceed expenses. figure №.3. net profit/loss (billion sums)5 it is worth noting that a significant increase in the income of the banking sector did not increase profits in any way, but on the contrary, profits decreased from 4,031 to 3,025 billion sums (figure № 3). figure № 4. profitability coefficients of the banking sector.6 now let's look at the profitability coefficients of the banking sector (figure no. 4). the coefficients for both periods are the same, except for the ratio of net income before income tax to total assets (roa), which decreased from 2.7 to 1.8. 5 cbu statistic datas were used https://cbu.uz/ru/statistics/bankstats/1710883/ 6 cbu statistic datas were used https://cbu.uz/ru/statistics/bankstats/1710883/ 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 2,7 14,8 4,7 6,5 5,5 4,8 отношение чистого дохода до уплаты подоходного налога к совокупным активам (roa) отношение чистой прибыли к совокупному капиталу по балансу (roe) отношение чистого процентного дохода к совокупным активам отношение чистого процентного дохода по кредитам к совокупному ссудному портфелю отношение чистого процентного дохода к совокупным обязательствам чистая процентная маржа к совокупным активам net profit/loss (billion sums) american journal of business management, economics and banking volume 24 may 2024 p a g e | 157 www.americanjournal.org thus, it can be observed that the increase in income of the banking sector, in terms of profitability, did not change the situation. references 1. economic and mathematical dictionary: dictionary of modern economics. — m.: delo. l. i. lopatnikov. 2003. 2. business. explanatory dictionary. — m.: "infra-m", publishing house "the whole world". graham betts, barry brindley, s. williams, et al. general edition: doctor of economics osadchaya i.m. 1998. 3. international financial reporting standard (ias) 1 "presentation of financial statements". american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 244 www.americanjournal.org digital economy: concept and development trends kamalova jamila tashkent institute of finance senior teacher of the department of information systems and digital technologies a b s t r a c k e y w o r d s the digital economy is an economic activity focused on digital and electronic technologies. this includes e-business and commerce, as well as the goods and services they produce. essentially, this definition covers all business, cultural, economic and social transactions carried out on the internet and through digital communication technologies. the following article is devoted to the study of digital economy and its development trends. digital economy, cloud technology, bitcoin, cryptocurrency, ecommerce, internet of things, web money, qiwi wallet. introduction the term was first used in the digital economy: promise and danger in the age of network intelligence by author don tapscott. over the past 15 years, the growth of the internet economy has been especially noticeable. there has been a huge growth in digital platforms. consumers are increasingly influenced by what they see on facebook, twitter, instagram or youtube. the internet is integrated into all aspects of human life, including indispensable structures such as healthcare, education and banking. the digital economy is an economic activity in which digital data, processing large volumes and using the results of analysis are the key production factor which, compared with traditional forms of management, can significantly increase the efficiency of various types of production, technologies, equipment, storage, sale, delivery of goods and services. in other words, the digital economy is an activity directly related to the development of digital computer technologies, which includes services for the provision of online services, electronic payments, online commerce, crowdfunding, and so on. usually the main elements of the digital economy are called: e-commerce, internet banking and electronic payments, cryptocurrency and blockchain, internet advertising and online games. the digital economy is a production based on digital technologies. currently, about half of the world's population uses the internet in their daily lives for learning and doing business. the volume of virtual trade in the near future will exceed the standard types of trade relationships. digitized money is more convenient to use, it is much more difficult to fake it. virtual life is an industry where new products are made and the craziest ideas are realized. testing new inventions has become more accessible and faster there is no need for real tests. emulation allows you american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 245 www.americanjournal.org to identify the pros and cons of new products at minimal cost. the electronic economy, according to experts, will completely change the usual business processes and economic relationships. the digital economy is an activity in which the key factors of production are data presented in digital form, and their processing and use in large volumes, including directly at the time of their formation, makes it possible to significantly increase efficiency, quality and efficiency compared to traditional forms of management. productivity in various types of production, technologies, equipment, storage, sale, delivery and consumption of goods and services. materials and methods an example of a digital economy is any economic activity implemented via the internet. digital can be called any company that seeks to fully or partially transfer its activities online. if such important aspects of functioning as management, control and analysis of business, provision of services or delivery of goods, logistics and marketing are associated with electronic technologies in an enterprise, then such a company can be counted among those that form the electronic economy. for example, uber or yandex taxi are definitely technology companies based on advanced customer interaction technologies. as a result, the consumer received a radically new type of service provision with lower organization costs, which led to cheaper taxi fares. it also happens that a completely traditional company is moving to a digital economy. in particular, this was the case with the supermarket chain. when the administration realized that almost 70% of the resources are spent on maintenance, it launched a digital transformation with an ibs partner and switched to new technologies, which improved the business model. benefits of the digital economy the digital economy, namely the emergence of new opportunities, of course, has a positive impact on human life. thanks to the development of digital technologies, the consumer can quickly receive the services he needs, save money by buying products in online stores at lower prices. so, the electronic version of the book will cost you several times cheaper than its printed counterpart, on wholesale purchases on the internet, by agreeing with other consumers, you will save more than shopping at offline outlets. after all, the consumer can even start a business online, become an entrepreneur without leaving home. other advantages of the development of the digital economy, the world bank in its 2016 review "digital dividends" include: growth in labor productivity; increasing the competitiveness of companies; reduction of production costs; creation of new jobs; overcoming poverty and social inequality. and these are just a few examples of how the digital economy has a positive impact on our lives, giving many opportunities to the average user, and thereby expanding the possibilities of the market itself. disadvantages of the digital economy the introduction of “digits” and e-commerce, however, carries a number of disadvantages for humanity, including: the risk of cyber threats associated with the problem of protecting personal data (partially the problem of fraud can be solved by introducing the so-called digital literacy); american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 246 www.americanjournal.org "digital slavery" (using data on millions of people to control their behavior); an increase in unemployment in the labor market, as the risk of the disappearance of certain professions and even industries will increase (for example, many experts seriously believe that the banking system will disappear within the next ten years). this will become possible due to the further spread of information technology and its products, such as: stores with electronic cash registers, customer service bots, unmanned vehicles, etc.); "digital divide" (a gap in digital education, in terms of access to digital services and products, and, as a result, a gap in the level of well-being of people in the same country or in different countries). technologies shaping the digital economy almost the entire layer of modern information and communication technologies has some relation to the digital economy. we will highlight only five technologies that are the most important. cloud computing cloud computing is an information technology concept that provides ubiquitous and convenient network access on demand to the total amount of configurable computing resources that can be quickly provided and released with minimal operating costs or requests to the provider. in the everyday sense, cloud technologies are access to remote data storages and remote computing resources that are provided to the user on demand and in the required amount. examples of resources include data networks, servers, storage devices, applications, and services, either collectively or individually. in other words, cloud technologies are data processing technologies in which computer resources are provided to an internet user as an online service. this concept appeared in 2006 and is rapidly playing an increasingly significant role in practice: the public cloud computing market has grown from $17 billion in 2009 (about 5% of the entire information technology market) to $175 billion in 2014. cloud technologies have a large number of advantages compared to the classical it architecture: saving on computing power; fault tolerance; high data processing speed; savings on licenses and software; cheap server space; accessibility (limited only by the presence / absence of the internet); resistance to ddos attacks. it must be said that cloud technologies have made a colossal, if not decisive, contribution to the foundation of the digital economy. this contribution is not limited to the technological component, but also includes economic and ideological components. the development of cloud technologies, for example, has led to the emergence of such concepts as production on demand (production on-demand), software as a service (software as a service) and many others, which have become the leitmotif of most business models and the principle of economic interactions in digital economy. big data is a set of approaches, tools and methods designed to process structured and unstructured data (including from various independent sources) in order to obtain human-perceptible results. big data is characterized by a significant volume, variety and update speed, which makes standard methods and tools for working with information not effective enough. thus, big data technology is a decision-making tool based on large amounts of information. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 247 www.americanjournal.org this area of information technology has been actively developing since 2010. today, there are many methods and complex software products that allow you to process big data, including those from ibm, oracle, microsoft, hewlett-packard, emc, apache software foundation (hadoop), etc. examples of information sources that require big data techniques include: • logs of user behavior on the internet; • gps signals from cars for a transport company; • information about transactions of all bank customers; • information about all purchases in a large retail chain; • information from numerous urban ip-cameras; • information from sensors of large production, equipped with industrial internet technology, etc. the number of data sources is growing rapidly, which means that data processing technologies are becoming more and more in demand. the internet of things (iot) is a concept that combines many technologies, which implies equipping with sensors and connecting all devices (and things in general) to the internet, which allows real-time remote monitoring, control and management of processes (including in automatic mode). today, two major areas have been formed: internet of things (iot internet of things), industrial internet of things (iiot industrial internet of things). instrumentally, these technologies are very similar, the key difference is in their purpose: if the main task of the internet of things is to collect all kinds of data (which will be used as a priority for building models and forecasts), then the purpose of the industrial internet of things is to automate production (due to remote management of resources and capacities for sensor readings). cognitive technologies the name comes from the word cognitio (lat. “to know”), that is, cognitive technologies are technologies that “work” with our knowledge: they evaluate our attention, track our state, monitor the work of the brain and try to “understand” a person. the most promising areas for the development of these technologies are: cognotropic drugs designed to expand human capabilities, including the development of intelligence, memory; cognitive assistants adaptive support systems in various situations (access control, autopilot); virtual interfaces of the "brain-computer" type intuitive, accessible to everyone ways to control computer systems. the development of cognitive technologies and knowledge about the structure of the human brain will help us in the development of artificial intelligence. it is necessary to distinguish between full-fledged artificial intelligence, which has almost unlimited possibilities and enslaves humanity in many science fiction films, and intellectualized systems, which are the evolutionary development of cognitive systems. true artificial intelligence at the moment is the subject, rather, of philosophical disputes about the fundamental possibility of existence and potential danger. intelligent systems can be seen already now, a striking example is the watson supercomputer from ibm. already, the watson cloud-based cognitive system allows you to conduct automatic dialogues with users on the website of the usaa company (financial services for the military), makes decisions at wellpoint (a medical insurance company in the united states). virtual (digital) currency american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 248 www.americanjournal.org electronic currency is money that does not have a material embodiment, which can be used as a fullfledged banknote. cryptocurrency this is a type of virtual currency, the emission (“mining”, mining) of which is based on the specific application of cryptographic algorithms. blockchain (distributed ledger, chain of transaction blocks) blockchain is a methodology for building distributed databases (without a single center), in which each record contains information about the history of ownership, which makes it extremely difficult for it (information) to be falsified. blockchain is used in virtual currency systems to perform operations (issue of monetary units, transfers) and store their history. bitcoin bitcoin (btc) is the first and most widely used virtual currency in existence; is a cryptocurrency and uses blockchain technology. we could not ignore these concepts, since they are really related to the digital economy, firstly, and secondly, recently there has been a misunderstanding and mystification of the indicated terms. however, let's say right away that the importance of these tools in the digital economy is exaggerated. in fact, this is a very wide range of issues, but we will try to outline their essence as simply and briefly as possible. virtual currency may not be a cryptocurrency and may not use blockchain technology. examples of virtual, but not cryptocurrencies, are yandex money, web money (webmoney) and qiwi wallet (qiwi). many people confuse the terms virtual currency, cryptocurrency, blockchain and use them as synonyms, but this is true only for the first virtual currency bitcoin. the fact is that blockchain technology was developed specifically for bitcoin and was not used anywhere else for some time, but today this is no longer the case. due to its features, which we will discuss below, blockchain technology is finding more and more applications: copyright, vote counting, crowdfunding initiatives, social authority, insurance, advertising, betting, etc. without going into the essence of technologies and algorithms, we list the main distinguishing features of blockchain technology: data is repeatedly duplicated and stored in a distributed network created and supported by all participants, which makes it practically impossible to hack it; each information record contains its own background, which makes it possible to verify the origin of information and its authenticity; features of the database construction make it extremely resistant to hacker attacks or illegal actions. the listed features of blockchain technology determine the main property of cryptocurrencies: ➢ reliability; ➢ impossibility of falsification; ➢ the impossibility of theft or "freezing, stopping" the transaction. it is also necessary to note the following features of classical cryptocurrencies: lack of a single emission center; limited emission (the number of cryptocurrencies is limited, for example, bitcoin has a limit of 21 million); open source code; lack of external regulation (apart from that laid down in the program code); cross-border. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 249 www.americanjournal.org conclusion in addition to reliability, cryptocurrencies attract users with ease of use and minimal transaction costs. the cost of bitcoin (like any other cryptocurrency) is determined on special exchanges (cryptoexchanges or virtual currency exchanges). in other words, many virtual currencies do not have a material backing, but are a form of social contract. references 1.adilhodzhaev a. et al. assessment of the potential of composite gypsum binder bricks as an alternative to traditional wall materials in uzbekistan //european journal of molecular & clinical medicine. – 2020. – т. 7. – №. 2. – с. 1884-1889. 2.kodirova d. t. et al. solubility in the system sodium chlorate-rhodanide ammonium-water //проблемы современной науки и образования. – 2019. – №. 3. – с. 26-30. 3.tulanovna k. d., saydakhral t. solubility in the system sodium chlorate-rhodanide sodium-water //проблемы современной науки и образования. – 2019. – №. 6 (139). – с. 17-19. 4.tulanovna k. d., kizi a. s. d. physicochemical studies of the production of defoliant based on magnesium chlorate and ammonium thiocyanate //asian journal of multidimensional research. – 2021. – т. 10. – №. 4. – с. 95-100. 5.khamidovna n. s. on the use of infinitive groups in german and uzbek languages //texas journal of multidisciplinary studies. – 2021. – т. 1. – №. 1. – с. 202-204. 6.sofiboyeva phd g. m. developing pupils’logical thinking ability in the study of geometric materials in mathematics of primary schools //central asian journal of education. – 2021. – т. 6. – №. 1. – с. 1-9. 7.sofiboyeva g. developing imagination about space of primary school students in the learning process //international scientific and current research conferences. – 2021. – с. 4-8. 8.nazikhovna g. y. programming and robotics based in steam learning //american journal of interdisciplinary research and development. – 2022. – т. 2. – с. 58-87. 9.yunusova g. n. the program front page-program of making web page and ebook //scientific bulletin of namangan state university. – 2020. – т. 2. – №. 3. – с. 230-233. 10. bakhtiyarovich o. b. the role and significance of the regional investment environment in attracting foreign investments to the economy //conferencea. – 2023. – с. 5-8. 11. bakhtiyor o‘g‘li o. b. theoretical aspects of investment attractiveness //american journal of technology and applied sciences. – 2023. – т. 10. – с. 144-149. 12. butaev j. activities of large issues in the economy of uzbekistan: analysis and results //academicia: an international multidisciplinary research journal. – 2021. – т. 11. – №. 6. – с. 757-766. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 182 www.americanjournal.org loss and recovery of nationality in iraqi law prof. fadwa al-kahwaji lect prof. law and criminology / faculty of law and political sciences of tunis kahouajif@gmail.com zeyad tariq ibrahim sfax university faculty of law, tunisia e-mail: zeyad.albaitar@uosamarra.edu.iq a b s t r a c t k e y w o r d s this study aimed to clarify the provisions of loss and restoration of nationality in iraqi legislation, by defining the nature of loss of nationality and the cases of loss and restoration of it, where the descriptive and analytical approach was relied upon, and the reason for the loss is due to the will of the individual, which is based on his freedom to change iraqi nationality and obtain foreign nationality. or the will of the state by stripping the person who acquired iraqi citizenship of it or withdrawing his citizenship from the person concerned if the reasons for it are available. losing iraqi citizenship has special effects, and the recovery procedure according to iraqi law is limited to those who had original iraqi citizenship and lost it due to one of the reasons for the loss. finally, we recommended that it was it would be better for the iraqi legislator to stipulate residency in iraq as a condition for the woman to regain her iraqi nationality, which she renounced because she acquired the nationality of her foreign husband. this condition will undoubtedly work to re-instill the spirit of loyalty to the state and integration into iraqi society after the end of the marital bond that required her to renounce her iraqi nationality. hence, its spirit of citizenship was weakened and its loyalty to the iraqi state weakened. loss of nationality, restoration of nationality, iraqi code of procedure. introduction nationality is a bond that a citizen enjoys, and enables him to exercise his legal and political rights in accordance with the conditions specified by the laws that the state sets for this purpose. the right of the state to regulate the methods of acquiring its nationality and to identify its nationals according to american journal of business management, economics and banking volume 22 march 2024 p a g e | 183 www.americanjournal.org its independent will and what its basic interests require is one of the most important principles approved by the rules of public international law in the field of nationality was adopted by international jurisprudence and jurisprudence, and was enshrined in international agreements and councils (1). every human being has the right to acquire a nationality, and no person may be arbitrarily deprived of his nationality, nor of the right to change his nationality.” this is what was stated in the universal declaration of human rights, issued in 1984, where it indicated that for every individual, everywhere in the world, there is the right to have a legal connection to a country (). every country has the freedom to organize matters of granting and withdrawing nationality according to what it deems compatible with its national security and consistent with international rules, and this is what the iraqi state has done. this research will be divided into several aspects of research on an important topic, which is the loss of nationality in iraqi law . the first topic the nature of nationality and its elements the link of nationality is of great importance in the modern era in both the life of the individual and the life of the state. it is the criterion by which the legal and geographical distribution of individuals between countries is carried out, specifying each country’s share of individuals who constitute the pillar of its people. a corner of the territory has no value without a people who populate it, and there is no ruling authority. without the existence of a people addressed by the rules set by the authority, the effect of nationality is not limited to the internal entity of the state only, but rather this effect extends to the entire system of the international community. the life of common states requires the existence of a clear standard that defines the boundaries of the people of each of them. (2). the first requirement definition of nationality nationality is considered the criterion by which individuals are distributed geographically within the international community that consists of states. these individuals are distributed among these units in the form of groups, and each group of these individuals is a pillar of the people in the state. the state consists of three basic pillars: the territory, the authority, and the people. nationality has great importance in the lives of individuals and the state alike, and rights and obligations arise from the bond of nationality between the individual and the state. the matter is not limited to the state’s internal system, but extends to the system of the international community, where nationality is considered one of the topics where these two systems most often meet, as a state's recognition of another state requires its recognition of the freedom of this state in its role to determine the race of its people. thus, the distribution of individuals internationally on this basis is a site of conflict between the basic interests of these various countries, and it is a situation in which research 1fahmy, muhammad kamal (1989), the origins of private international law: nationality, homeland, al-janab center, cairo, university culture foundation . 2 al-hadawi, hassan (2001), nationality and its provisions in jordanian law, amman, majdalawi publishing house, p. 5. american journal of business management, economics and banking volume 22 march 2024 p a g e | 184 www.americanjournal.org arises as to the extent of the state’s freedom in matters of nationality vis-à-vis other states, as to whether this freedom is absolute or restricted. (3). the general concept of nationality can be defined as a legal and political idea through which an individual belongs to a specific state. it is the standard by which the legal distribution of individuals in the international community takes place and which determines each state’s share of individuals who are the pillar of its people. (4). nationality is also defined as: a political bond by which an individual becomes part of the permanent constituent elements of a particular state, or it is a legal bond that attaches a person to a specific state, or it is a political and legal bond between an individual and a state that obligates him to be loyal to it and obligates him to protect him and grant him the benefits resulting from this bond. (5). there is a trend that has focused, in its definition of nationality, on the role that nationality plays in the relationship of the state granting nationality to the individual. therefore, this trend defines nationality as a quality whose granting by the state results in its personal jurisdiction over the individual, which is invoked before other states. accordingly, the state is the only one that it creates and grants citizenship, and also has the right to deprive an individual of it, and therefore no body, international organization, or individual may do so. (6). despite the differences over the concept of nationality, these differences were not fundamental as much as they were differences over clarifying and expanding the concept of this nationality. the difference is also due to legal scholars originally differing in classifying nationality as a branch of law. some believe that it is a branch of public law. others see it as one of the branches of private law, but despite these differences, we find that they are unanimously agreed that nationality is a bond or relationship between a person and a state that has its effects, results, and mutual repercussions on the state and the person, and therefore it is not devoid of being a dependency relationship governed by legal, political, and social considerations that determine it. the countries that created and organized it (7). the second requirement pillars of nationality by analyzing the term nationality, it becomes clear to us that nationality is a legal system established by the state to determine the people’s position within it and through which the individual acquires the status of belonging to it. it is clear from this definition that nationality is based on three pillars, which are as follows: the first pillar: the state granting citizenship the state is considered a party to the bond of nationality, and it is the one that creates and grants nationality. it is the source of nationality, but considering that the state is a party to nationality is a 3zanati, essam muhammad (1997), protecting human rights within the framework of the united nations, cairo, dar al-nahda al-arabiya, p. 13. 4 riad, fouad abdel moneim (1990), egyptian nationality: a comparative study, cairo, dar al nahda al arabiya, p. 7 . 5shawqi, badr el-din abdel moneim (1995), the mediator in private international law, cairo, (d.n.), p. 43. 6 salama, ahmed abdel karim (1993), al-mabsut fi explanation of the nationality system, cairo, dar al-nahda al-arabiya, pp. 25-26 . 7 al-hadawi, hassan (2001), nationality and its provisions in jordanian law, amman, majdalawi publishing house, p. 55. american journal of business management, economics and banking volume 22 march 2024 p a g e | 185 www.americanjournal.org pillar of it because that bond decomposes into a binding relationship between the individual and the state that arranges rights for each individual and bears some costs towards the state. thus, we find that the law the international community does not determine the right to grant citizenship to anyone other than the state and not to other persons under international law. therefore, international organizations, despite their enjoyment of international legal personality, may not grant citizenship to individuals. for example, the united nations may not decide universal citizenship for an individual because it does not have the power to impose this type of dependency. this does not change the fact that the united nations has granted its employees movement passports that allow their holders to travel from one country to another. this passport has limited meaning, as it is merely a document proving the individual’s affiliation to the united nations from a purely administrative standpoint, and in this capacity it is recognized by all countries. it is also a matter of i also ask whether any other regional organization can grant citizenship to an individual (8). the right to establish nationality is limited to the state, as it alone has the right to establish this right and grant it to the individual who lives on its territory and is subject to its sovereignty. the state, as a party establishing the nationality bond, means the political unit that enjoys international legal personality and the status of a state at the same time. it is also defined as a homogeneous group of individuals living permanently. in a specific territory and subject to organized public authority (9). also, countries or states that unite with each other form a kind of federation, as is the case in the united states of america, and although each state enjoys a kind of administrative and legal independence, it does not have the right to establish its own nationality. rather, the nationality created by the federation of states extends its effects to all citizens of the united states. as for the relationship of the individual in each state, it is a pastoral relationship and does not amount to the meaning of citizenship. the same applies to the international federation, as the individual is a member of the state entering the union. likewise, the state that has the right to establish citizenship is not required to be fully sovereign, but rather to countries lacking sovereignty by virtue of occupation still have the right to establish citizenship, as is the case in palestine, which is subject to the zionist occupation .)( the second pillar: the individual nationality can only be given to a natural person, because natural persons are the only ones who constitute the people element in the state. however, a kind of metaphorical nationality can be applied to some things, such as airplanes, and legal persons, such as companies, so it is said about this plane that it is an american plane, and about this company that it is german, and the goal behind that is linking this thing or legal person to a specific state in order to subject it to its laws and clarify the rights and obligations arising from it. this is only for economic and material purposes and not human ones, as is the case for a natural person whose right to nationality is linked to the fact that he is a member of the people of this state. (10). also, in order for a natural person to acquire citizenship, it is not required that he have full capacity. rather, he may be incomplete or lose capacity, as it is sufficient for him to have legal personality . the third pillar: the existence of a nationality bond between the individual and the state 8 al-wakil, shams al-din (2002), al-mawjiz fi nationality and status of side, alexandria, manshaet al-maaref, p. 31 . 9 salama, ahmed abdel karim, previous reference, p. 30 . 10al-wakil, shams al-din, previous reference, p. 66. american journal of business management, economics and banking volume 22 march 2024 p a g e | 186 www.americanjournal.org based on the bond of nationality that the legislator has defined, all the rights that the law has guaranteed to the individual, specified for him, and guaranteed him the right to enjoy them, as well as all the mutual obligations and duties between him and the state whose nationality he enjoys. this means that the individual, once he enjoys the nationality of his state, has many private and public rights, such as the right to own property and the right to vote. he has certain duties that prove his sincerity to this state, such as performing military service, but in return, the state has the burden of defending its members and protecting their legitimate interests inside and outside its borders. (11). this bond is a legal and political bond, but the concept of the legal bond between the individual and the state does not mean that it is a contractual bond created by the union of the will of the individual and the will of the state, but rather that its concept is based on loyalty to the state as a political entity . the second topic loss of nationality in iraqi law in this study, the loss of nationality in iraqi law will be shed light, by defining the concept of loss of nationality as follows: the first requirement definition of loss of nationality loss is defined as the loss of citizenship from a person's legal life after enjoying it for a period of time for voluntary or involuntary reasons. therefore, the will of the person plays a role in determining the nature of the loss, and accordingly the loss is divided into two types : first voluntary loss (loss by change) it is the loss of nationality from a person by his will. in light of this loss, the will is directed toward acquiring the nationality of a country, and the effect of that loss is to prevent dual nationality, meaning that the acquisition of a new nationality is a reason for losing the old nationality. legislation has differed regarding the mechanism for the loss to occur. some legislation it stipulates that when a person acquires a foreign nationality, he loses his previous nationality by force of law without the need for the approval of the state whose nationality was lost. the loss is achieved here as a direct effect of entering into the new nationality, as the legislation stipulates that the acquisition of nationality must have occurred at the request of the person or based on his desire. or by his choice or will. indeed, some legislation stipulates that a person loses his previous nationality by force of law if he acquires another nationality, whether by his will or otherwise, while other legislation stipulates that the loss occurs after the person fulfills some obligations towards his country, such as performing educational service or obtaining... obtaining previous permission from the government of his country and submitting a request to renounce citizenship (12). 1. second: involuntary loss (loss by stripping) 2. it is the loss of nationality from a person’s life by an act beyond his control. most often, loss in this situation comes with an administrative procedure that leads to stripping the person of his nationality. the iraqi legislator expanded the previous law on cases of involuntary loss and attributes the reason for this to the fact that the regime previously prohibited work and opposition political activity and every work for the benefit of a state or entity outside jordan is described as an illegal act, 11 al-wakil, shams al-din, previous reference, p. 74 . 12 al-wakil, shams al-din, previous reference, p. 33 . american journal of business management, economics and banking volume 22 march 2024 p a g e | 187 www.americanjournal.org and expresses weak loyalty to the state, and every person who joins it and practices it is out of loyalty, and therefore not worthy of continuing to hold iraqi citizenship. the egyptian legislator was part of this trend in the law citizenship no. 26 of 1975, amended, as well as the iraqi legislator. 3. involuntary loss occurs in two ways: withdrawal and projection . 4. withdrawal: it is an administrative measure most often taken by the executive authority in the state concerned with nationality affairs. it stipulates that a person or group of people be stripped of their national citizenship for performing an act that expresses weak loyalty. it is a measure directed at original patriots, while some of them limit this procedure to emergency nationals, and the legislative texts regarding withdrawal apply to specific cases, but not as an example, due to the danger involved in withdrawal, as it leads to the person being forcibly removed from the nationality of the state .(13). 5. revocation: it is an administrative measure taken by the executive authority competent in the state with regard to nationality affairs and in the face of persons that the state determines are not worthy of holding its nationality. we find, more often than not, that this measure is arbitrary, dictated by political considerations, and is mostly directed towards original and emergency citizens, and is used by the authority concerned with matters of nationality. nationality according to the political position of the state towards some people without there being clear legislative texts. revocation is a procedure that is not based exclusively on pre-determined legislative texts as in withdrawal, but rather it is based on administrative decisions dictated by immediate political considerations, and cases of revocation change according to the political position of the people. (14). loss of nationality also affects the person and his family members : 1individual effects after a person loses his national citizenship, he is treated as a foreigner with regard to civil and political rights and his movement and movement across international borders. he is subject to the procedures of entry, exit and residence of the foreigner in relation to the country whose nationality he held, and every country whose nationality he does not hold is either treated as an absolute foreigner in relation to for all countries of the world in the case of being stateless after loss, the most exposed to this situation are those whose nationality has been revoked, so jurisprudence urges the necessity of avoiding revocation and minimizing its effects. the person who has lost nationality may be treated as a foreigner in proportion to the state whose nationality he does not hold, and his national status is in relation to the state whose nationality he has. he holds its nationality, and the foreigner is also subject in all cases to the procedures for granting an entry visa and residence permit. if he owned a property before the loss and became a foreigner after that, he must sell it by consent or judgment. if he is an employee, his services will be terminated because he lost one of its conditions, which is holding the state’s nationality. if if he is a retiree, the payment of his retirement benefits will be stopped. all of these consequences resulting from the loss of citizenship come after his registration in the civil status registry is upgraded and the citizenship document is withdrawn. the person who has lost citizenship after that also may not practice professions or businesses except after obtaining the approval of the competent authorities in the state and in iraq. these approvals are granted by the 13salama, ahmed abdel karim), previous reference, p. 41 . 14al-wakil, shams al-din, previous reference, p. 39.. american journal of business management, economics and banking volume 22 march 2024 p a g e | 188 www.americanjournal.org ministry. work and social affairs through the relevant departments. he may not reside for more than the period specified in the decision to lose nationality or stated in his passport if he enters the country after losing its nationality. exceeding the period of residence will result in fines and deportation procedures . in the case of someone whose nationality has been revoked, his burial in the state’s lands entails paying some fees. the state does not interfere after a person loses its nationality in protecting him diplomatically abroad because his contact with it has been cut off due to his losing its nationality. he can be extradited for a crime to a country that claims him if there is an agreement. between his country of residence and that country, it orders the extradition of criminals. the country of residence may also expel and deport him if he violates the rules of order and security. (15). 2the collective effects of loss of nationality the effects of a person losing his nationality extend to his family members, including his wife and children. for the wife, after losing her nationality as a result of her husband losing his nationality under the traditional trend, she has now become, under the modern trend, independent in the matter of her nationality, as in acquiring it, as well as in losing it. if her husband loses his nationality she does not lose her nationality by consequence, but rather her loss of her nationality depends on her will. if she wants to keep it, she keeps it, and if she wants to abandon it and enter into her husband’s nationality, then this loss will result. this was the position of the iraqi legislator, as well as most legislation in this direction. (16). as for children, we differentiate between adults in ruling. the father’s loss of his nationality has no effect on their nationality. they are independent of their nationality because they possess a will independent of the father’s will and a capacity that enables them to act independently. as for immature children, they lose nationality depending on the father’s loss of his nationality. in most cases, immature children are affected if they reside with the father . there is one case of loss that applies to all family members, including a wife and adult and non-adult children, which is the case of loss due to obtaining citizenship based on false statements, forged statements or information. if a person obtains citizenship through this method and all members of his family enter with him based on his nationality, if the father loses it because he obtained it in this way, everyone who entered with him will lose it as a result of him. as for those who did not enter with him because of fraud, but rather obtained it due to a valid reason and real information, they are not affected by the father losing his nationality, even if they are not yet adults. (17). the second requirement loss of nationality in iraqi law the iraqi legislator specified four cases of loss of nationality in nationality law no. 26 of 2006. the iraqi legislator stated in article (10/1) that states: “an iraqi who acquires a foreign nationality shall retain his iraqi nationality unless he declares in writing that he has renounced his iraqi nationality.” this means the acquisition of a foreign nationality does not entail the loss of his iraqi nationality, )salama, ahmed abdel karim, previous reference, p. 44 . )al-wakil, shams al-din, previous reference, p. 41. (salama, ahmed abdel karim, previous reference, p. 47.. american journal of business management, economics and banking volume 22 march 2024 p a g e | 189 www.americanjournal.org that is, the acquisition and loss do not occur at the same time, as was the case in the repealed law (11/1). the conditions of the text are : 1that an iraqi, an original or accidental citizen, acquires foreign nationality, whether inside or outside iraq, and that the text is absolute. we believe that the acquisition in most cases is achieved after legal residence on the territory of a foreign country, meaning that the acquisition is abroad, just as it is the same as acquiring the nationality of an arab or non-arab country. because what is meant by the term foreigner is non-iraqi, which includes arabs and foreigners. in addition, it is not acceptable for an iraqi to renounce his iraqi nationality if he does not acquire a foreign nationality so that he does not fall into statelessness . 2to declare in writing his renunciation of iraqi nationality. this means submitting a request declaring the renunciation and withdrawal of iraqi nationality to iraqi consulates and embassies abroad. in most cases, the text does not apply, and therefore the iraqi does not lose his nationality if he verbally announces renunciation, because the text is limited to abandonment is in writing, but the text does not specify the legal period for submitting the application . 3the minister of interior’s approval of the renunciation request after referring it to him from abroad. this means that the written request for renunciation does not automatically lose the iraqi’s nationality except after it is coupled with approval. the iraqi loses his iraqi nationality from the date of the minister’s approval, and he is treated like a foreigner from this date. this also means that the date of acquiring foreign citizenship does not coincide with the date of losing iraqi citizenship, just as the date of submitting the renunciation request does not coincide with the date of losing iraqi citizenship, as the loss occurs from the date of the minister’s approval of the renunciation request the third topic cases of recovery of iraqi citizenship iraqi citizenship is restored under the iraqi nationality law in two cases. the first is to restore iraqi nationality after losing it by choice, and the second is to restore iraqi nationality after losing it by law. the first requirement recovering iraqi nationality after losing it by choice iraqi nationality is regained after losing it by choice in two cases: the first is the recovery of iraqi nationality after losing it by choice in order to acquire a foreign nationality, and the other is the woman’s recovery of her iraqi nationality after she lost it by choice in order to acquire her husband’s nationality. we will discuss each of the two cases in a separate section as follows: the first section: reclaiming iraqi nationality after losing it by choosing to acquire a foreign nationality. the second section: the woman regains her iraqi nationality after losing it by choice because she acquired the nationality of her foreign husband . first branch recovering iraqi nationality after losing it in order to acquire a foreign nationality american journal of business management, economics and banking volume 22 march 2024 p a g e | 190 www.americanjournal.org paragraph (third) of article 10 of the iraqi nationality law stipulates this case for the recovery of iraqi citizenship. in order to recover iraqi citizenship in this case, the following conditions must be met.18: the first condition: an iraqi must voluntarily renounce his iraqi nationality in order to acquire a foreign nationality exclusively in accordance with the provisions of paragraph (first) of article ten of the iraqi nationality law. however, if he lost iraqi nationality for another reason, the person who lost it cannot regain iraqi nationality in accordance with paragraph (third) of article tenth of the iraqi nationality law. in this regard, it is equal that the person acquired foreign nationality while residing in iraq or residing in the foreign country whose nationality he acquired or in another country.19. the third condition: the person must reside in iraq after returning to it for a period of no less than one year, starting from the date of his return to iraq. this residence must be legal in accordance with the provisions of the foreigners’ residence law. the purpose of this residence is to ensure that the person’s connection with iraqi society returns again. in this regard, it is not required that the person sever his relationship with the country of his foreign nationality during his stay in iraq . fourth condition: the person must declare in writing his desire to regain his lost iraqi nationality before the end of the one-year period required for his residence in iraq, after his return. he may submit a request to restore iraqi nationality during the aforementioned period, but if this period expires without submitting an application recovery: in that case, his right to claim the recovery of iraqi citizenship will be forfeited, and in that case he must leave iraq if his residency period expires and return there for another period of residence for a full year for the purpose of submitting a request to restore iraqi citizenship . fifth condition: the competent authority represented by the minister of interior must approve the request to recover iraqi nationality submitted by the person who lost it, because recovery in this case and in accordance with the text of paragraph (third) of article ten of the iraqi nationality law does not take place automatically by virtue of the law and once its conditions are met, but rather must be approved by the minister interior, and this authority granted to the latter is permissible and not obligatory, as the minister of interior has the authority to approve the request, and his rejection is subject to appeal before the administrative courts, which requires the minister of interior to cause his decision to reject the request to restore iraqi citizenship. . in this regard, the minister of the interior has the right to delay the decision on the request to recover iraqi nationality to the extent he wishes, because the legal text does not restrict him to a specific period in this regard. in fact, the researcher criticizes the position of the iraqi legislator in not obliging the minister of interior to decide on the request to recover iraqi nationality within a certain period, which paves the way for the competent authority to procrastinate in responding to the restitution request, whether by approval or rejection. it would have been better for the iraqi legislator to restrict the minister of interior and oblige him to )(paragraph (third) of article ten of the iraqi nationality law stipulates that: “an iraqi who has renounced his iraqi nationality may regain it if he returns to iraq legally and resides there for not less than one year, and the minister may consider him, after the expiry of that period, as having acquired iraqi nationality from the date of his return if he submits an application to regain iraqi citizenship before the end of the aforementioned period, and he does not benefit from this right except once. .)badr al-din abdel moneim shawqi international private relations third edition al-ashry press cairo 2005 pp. 222 et seq. american journal of business management, economics and banking volume 22 march 2024 p a g e | 191 www.americanjournal.org decide on the restitution request within a specific period of time. conversely, the applicant is considered to have regained his iraqi nationality, which he had previously lost . it is noted in the text of paragraph (third) of article ten of the iraqi nationality law that it gives anyone who has lost his iraqi nationality the right to regain it only once. therefore, if the person who lost iraqi nationality regains it and then loses it by choice again, he does not have the right to request its restoration a second time, and he did well. the iraqi legislator, in this regard, is to achieve the required and necessary stability and constancy in citizenship according to public principles, and so that iraqi citizenship is not a cause for trembling and lack of confidence in it when an individual can give it up and regain it more than once . returning to the text of paragraph (third) in article ten of the iraqi nationality law, it becomes clear to us the clear confusion in the linguistic and legal formulation that the iraqi legislator entered into in the following aspects: 1 . the iraqi legislator notes that he is unique from the rest of the legislators in the arab countries with a legal text that has no equivalent in comparative arab nationality legislation. the iraqi legislator did not explicitly keep up with the trend that decides to grant the competent authority the power to restore citizenship to the person who lost it after submitting a request to do so, nor did he explicitly keep up with the trend. the other trend decides to regain citizenship by the person who lost it by force of law once some conditions are met. 2 . it is noted in the iraqi text that it allowed the person who lost iraqi nationality to regain it if he submitted a request to do so after returning to iraq legally and residing there for no less than one year, but at the same time it allowed the minister of interior to approve the request to recover iraqi nationality or not, and it was up to the iraqi legislator either. to give the person who has lost iraqi nationality the right to regain the lost nationality by law as soon as the previous conditions are met, or to give the minister the power to decide on the recovery request by approving it or not, rather than clarifying the two rights within the text of a single law. 3 . it is noted that the iraqi text gives the person who has lost iraqi nationality the right to regain it, then gives the minister the right to consider him as having acquired iraqi nationality. it is known that there is a vast difference between acquiring nationality and recovering it. the first means the naturalization of a foreigner with the nationality of the state for the first time after the availability of one of the naturalization cases mentioned in the text. it is limited to the iraqi nationality law and does not include restoration. as for the latter, it means the return of a person to a nationality that he had previously lost. cases of restoration are also included exclusively in the iraqi nationality law and do not include the acquisition of nationality. it is clear from the above the difference between restoration and the acquisition of nationality and he was free. the iraqi legislator should unify the terminology in the legal text under discussion and abbreviate the term (recovery) instead of adopting terminology that would lead to a clear legal flaw and confusion. 4 . it is noted that the iraqi text includes a general rule stating that a person who has lost iraqi nationality has the right to regain it if he returns to iraq legally and resides there for no less than one year. this means that he regains nationality after a period of one year has passed since he resided in iraq legally and then the iraqi legislator returns. he decided as an exception to the general rule that the minister of interior has the right to consider a person who has lost iraqi citizenship as having acquired (recovered) citizenship from the date of his return if he submits an application to regain citizenship before the end of the one-year period. the truth is that the legal text addresses an issue american journal of business management, economics and banking volume 22 march 2024 p a g e | 192 www.americanjournal.org that is very clear in terms of the problem and the solution, and the matter cannot be stipulated in a general rule and an exception in one legal text, in addition to the confusion and anxiety that this leads to in the position of the person who has lost iraqi nationality, as he does not know whether he will regain iraqi nationality after the year has passed based on the rule. or will he be considered to have acquired iraqi nationality from the date of his return based on the exception established under the text? it would have been better for the iraqi legislator to abolish such an exception and be satisfied with the general rule only as in comparative arab nationality legislation . 5 . it is noted that the iraqi text allows a person who has lost iraqi nationality to submit an application to regain iraqi nationality before the end of the one-year period required for his legal residence in iraq. accordingly, the minister of interior may accordingly consider him, after the expiration of the one-year period, to have acquired (recovered) iraqi nationality from the date of his return . the truth is that all of this is completely illogical. it is unreasonable for the legislator to decide that a person who has lost iraqi nationality must reside in iraq for at least one year in order to be able to request the restoration of iraqi nationality, and then come back and decide in the same text that it is permissible for a person who has lost iraqi nationality to submit a restoration request. before the expiration of the aforementioned period ! the researcher wonders about the feasibility of requiring residency in iraq for at least one year if a person who has lost iraqi nationality can submit a recovery request before the end of a year ? what is the point of considering a person who has lost iraqi nationality regained it after the one-year period necessary for his residence in iraq has passed if he can regain it from the date of his return to iraq if he submits a request to do so before the end of the one-year period ? in order to answer the previous two questions, the researcher believes that it would have been better for the iraqi legislator not to allow the person who has lost iraqi nationality to regain nationality before at least one year has passed since his legal residence in iraq, and to also close the door to the competent authority to use this exception whenever he wants or not, regardless of whether or not he wants. certain controls . 6.the exceptions stipulated in the legal text will undoubtedly lead to harm to the interests of wellintentioned third parties who deal with the person who has lost iraqi nationality as a foreigner during the one-year period during which he resides in iraq, which is necessary for him to regain iraqi nationality, and then they are surprised by the decision of the minister of the interior, considering him as having acquired it ( reclaimed iraqi citizenship from the date of his return to iraq after submitting an application for this within the period of one year . in our opinion, the interests of good-faith third parties are more important to be taken care of than the interests of the person who lost iraqi nationality who renounced it willingly, and this care requires canceling this exception and adopting the general rule that determines the permissibility of recovering iraqi nationality from the date of submitting the application after returning to iraq and residing there for not less than one illegal year . . based on all of the above, we propose to the iraqi legislator to amend the text of paragraph (third) of article 10 of the iraqi nationality law so that the wording after the amendment becomes as follows: (an iraqi of iraqi origin who has renounced his iraqi nationality has the right to regain it if he returns to iraq and resides there lawfully for a period of time. it shall not be less than one year after an application is submitted to the minister of the interior and a decision is issued by him, or after a american journal of business management, economics and banking volume 22 march 2024 p a g e | 193 www.americanjournal.org period of six months has passed since the application was submitted without a decision being issued, and this right may only be used once . second section the woman regains her iraqi nationality after losing her choice by acquiring the nationality of her foreign husband this case for the recovery of iraqi nationality is stipulated in article (13) of the iraqi nationality law, and it is noted in the introduction to this article that it indicates that a woman who renounced her iraqi nationality in accordance with the provisions of clause (third) of article (10) of the iraqi nationality law has the right to regain it. her iraqi nationality is granted after certain conditions are met . we would like to make the following comments on this introduction, as follows: 1 . after an iraqi woman loses her iraqi nationality, she is no longer considered an iraqi, but a foreigner. therefore, the iraqi legislator had to refer to the woman without describing her as iraqi, because she has given up iraqi nationality and does not enjoy it . 2 . the truth is that the researcher does not see any connection between a woman’s renunciation of her iraqi nationality and clause (third) of article (10) of the iraqi nationality law. this clause relates to the recovery of iraqi nationality by the person who lost it, and has nothing to do with the woman losing her iraqi nationality. rather, the text the relevant law is article (12) of the iraqi nationality law . 3 . the researcher believes that what the iraqi legislator indicates about the necessity of having certain conditions to regain iraqi nationality in this case are not in fact conditions, but rather cases for a woman to regain her iraqi nationality, as evidenced by the legal wording of clauses (first) and (second), as each of the two clauses refers to an independent case. to restore the woman to her iraqi nationality. on this basis, we will consider the woman’s recovery of her iraqi nationality, which she had previously renounced because she acquired the nationality of her foreign husband, in two cases stipulated in article (13) of the iraqi nationality law, as follows : first: the woman regains her iraqi nationality so that her husband becomes naturalized with iraqi nationality or her marriage to an iraqi national . this case for the recovery of iraqi citizenship is stipulated in the first paragraph of article (13) of the iraqi nationality law. to recover iraqi citizenship under this case, the following conditions must be met: the first condition: that the woman renounces her iraqi nationality by choice in order to acquire the nationality of her foreign husband in accordance with the provisions of article (12) of the iraqi nationality law. however, if the woman loses her iraqi nationality for reasons other than marriage, she is not covered by this paragraph and cannot regain her lost iraqi nationality in accordance with it, and within this scope the marriage must be valid and effective in accordance with the iraqi personal status law no. (188) of 1959, based on the fifth paragraph of article (19) of the iraqi civil code, which stipulates that iraqi law applies to marriage if one of the spouses is iraqi at the time of the marriage. it also applies that the iraqi nationality renounced by the woman shall be original or acquired . the second condition: that her foreign husband acquires iraqi nationality through one of the methods of acquiring iraqi nationality, or that she marries a person who has iraqi nationality after the end of american journal of business management, economics and banking volume 22 march 2024 p a g e | 194 www.americanjournal.org her first marital relationship, which was the reason for her acquiring a foreign nationality and abandoning her iraqi nationality, and the iraqi nationality that the husband enjoys in this case must be equal. the latter is an original or acquired nationality. the third condition: the woman must declare her desire to regain her iraqi nationality in a written form, with a request submitted to the minister of the interior, and her lost iraqi nationality will be restored to her by law, starting from the date she submits the restoration request, without the need for the approval of the minister of the interior or the requirement of her residency in iraq or any other procedure . second: the woman regains her iraqi nationality due to the end of her marital relationship this case for the recovery of iraqi citizenship is stipulated in the second paragraph of article (13) of the iraqi nationality law. to recover iraqi citizenship under this case, the following conditions must be met: the first condition: that the woman voluntarily renounces her iraqi nationality in order to acquire the nationality of her foreign husband. in this regard, we refer to what was previously presented in the first condition of the first case of the woman regaining her lost iraqi nationality . the second condition: that her marital relationship with her foreign husband ends with his death, her divorce from him, or the annulment of their marriage contract . the iraqi legislator is criticized for stating these reasons by which the marital bond ends exclusively. therefore, if the marital bond ends for a reason other than the reasons mentioned in the text, such as its termination by divorce or judicial separation, then this text finds no scope for application, and therefore the woman cannot regain her lost iraqi nationality.20 . the third condition: after the end of the marital bond, the woman must disclose her desire to regain iraqi nationality in a written form through a request submitted to the minister of interior. this requires that she be present in iraq when submitting the recovery request. conversely, the request will not be accepted if it is submitted through iraqi representations during her residence. outside iraq, her lost iraqi nationality will be restored to her by law as of the date she submits her recovery request without the need for the approval of the minister of interior or any other procedure. it is noted that the iraqi legislator only stipulated that the woman be present in iraq at the time of submitting the restitution request and not reside there. this means that she can return to iraq to submit the restitution request to the minister of interior and regain iraqi citizenship and then return to her place of residence outside iraq as long as the iraqi legislator there is no stipulation that it must reside in iraq. the researcher believes that it would have been better for the iraqi legislator to stipulate residency in iraq as a condition for the woman to regain her iraqi nationality, which she renounced in order to acquire the nationality of her foreign husband, because this condition will undoubtedly work to revive the spirit of loyalty to the state and integration into iraqi society after the end of the marital bond that required it. she gave up her iraqi nationality, thus weakening her spirit of citizenship and weakening her loyalty to the iraqi state. .)majid al-halawani al-wajeez fi private international rights arts and sciences press damascus 1965 p. 205 et seq. american journal of business management, economics and banking volume 22 march 2024 p a g e | 195 www.americanjournal.org based on this, we propose to the iraqi legislator to amend the text of the second paragraph of article (13) of the iraqi nationality law so that the wording after the amendment becomes as follows: (if the marital bond ends, iraqi citizenship will be restored to her from the date she submits an application for that, provided that she is a resident of iraq. when submitting the application). the second requirement recovering iraqi citizenship after losing it by law iraqi nationality is regained after losing it by law in two cases. the first is: the child recovers his lost iraqi nationality as a result of his father losing his iraqi nationality, and the other is the recovery of lost iraqi nationality for political, racial, or sectarian reasons. we will discuss each of the two cases in a separate section, as follows: the first section: the child regaining his iraqi nationality after losing it due to his father . the second section: recovering iraqi nationality after losing it for political, racial, or sectarian reasons . first branch the child regains his iraqi nationality after losing it due to his father paragraph (second) of article (14) of the iraqi nationality law stipulates this case for the recovery of iraqi citizenship. in order to recover iraqi citizenship in this case, the following conditions must be met: the first condition: that a person who has not reached the age of majority loses his iraqi nationality due to his young age, as a result of his father losing his iraqi nationality for any reason, whether that is by abandoning it or by acquiring a foreign nationality in accordance with the first paragraph of article 10 and article (12) of the iraqi nationality law, or stripping the naturalized person of it. as a punishment for committing an act that disturbs the security of the state in accordance with article (15) of the iraqi nationality law the researcher believes that if the father lost his iraqi nationality due to fraud, forgery, or error in accordance with article (15) of the iraqi nationality law, his young children who lost their iraqi nationality as a result of it cannot recover it. this is because their father was not iraqi as a basis for the invalidation of his nationality, and what is built on falsehood is false. the second condition: the child who has lost his iraqi nationality must return to iraq and reside there for one year. it is noted that the iraqi legislator stipulates that the child must return to iraq and reside there for one year, while forgetting that a child who has not yet reached the age of majority cannot return to iraq alone and individually without a guardian or guardian, and this is also the case with regard to his residence in iraq. it is not legally permissible for this foreign child to enter iraq and residency there since he is incapacitated and his affairs are handled by his legal representative. the researcher notes that the iraqi legislator considers the child who submits the restitution request to be an iraqi from the date of his return to iraq, and it would have been better for him to consider him as an iraqi from the date of his submission of the restitution request, since that is in line with the legal logic of restoring citizenship to someone who has lost it whenever he requests it, in addition to the fact that there is no justification for considering him as an iraqi. the date of his return to iraq, especially since the iraqi legislator did not stipulate that the return to iraq must be legal. american journal of business management, economics and banking volume 22 march 2024 p a g e | 196 www.americanjournal.org the researcher also believes that the text of paragraph (second) of article (14) of the iraqi nationality law needs to be presented and reformulated from a linguistic standpoint due to the weakness of the text. based on the above, we propose to the iraqi legislator to amend the text of paragraph (second) of article (14) of the iraqi nationality law so that the wording after the amendment becomes as follows: (if an iraqi loses his iraqi nationality, his children who have not yet reached the age of majority lose it as well, and they may recover it based on upon their request if they return to iraq and reside there legally for not less than one year from the date of reaching the age of majority...). it is worth noting that children of jews whose iraqi nationality has been removed under the provisions of law no. (1) of 1950 and law no. (12) of 1951 do not benefit from this case to regain iraqi citizenship. second section reclaiming iraqi citizenship after losing it for political, racial or sectarian reasons article (18) of the iraqi nationality law stipulates this case for the recovery of iraqi citizenship. in order to recover iraqi citizenship in this case, the following conditions must be met: the first condition: that a person loses his iraqi nationality by having it revoked for political, racial, or sectarian reasons. this loss of nationality must be original or acquired, and there is no difference in that between all iraqis. the text includes every iraqi whose nationality has been revoked, regardless of religion, sect, nationality, or nationality. sect. the second condition: the person who has lost iraqi nationality must express his desire to regain his lost nationality in writing, through a request submitted to the minister of the interior, and iraqi nationality is returned to him by law without the need for the approval of the minister of interior or any other procedure. however, in the event of the person’s death before submitting a request to restore his nationality. lost iraqi nationality: his children who lost their iraqi nationality through their father have the right to request its recovery . it is worth noting that no one who loses his iraqi nationality will benefit from regaining iraqi nationality after losing it for political, racial, or conclusion : at the end of the research, we find that citizenship is an association that a citizen enjoys, and that enables him to exercise his legal and political rights in accordance with the conditions specified by the laws that the state sets for this purpose. the right of the state to regulate the methods of acquiring its nationality and to identify its nationals according to its independent will and what its basic interests require is one of the most important principles. approved by the rules of public international law in the field of nationality, and we find that the iraqi legislator has regulated everything related to the acquisition and loss of nationality in an independent law, and they have created convincing reasons related to the national security of both countries. if those reasons are met, then nationality will be withdrawn . american journal of business management, economics and banking volume 22 march 2024 p a g e | 197 www.americanjournal.org references 1. fahmy, muhammad kamal (1989), the origins of private international law: nationality, homeland, al-janab center, cairo, university culture foundation. 2. al-hadawi, hassan (2001), nationality and its provisions in jordanian law, amman, majdalawi publishing house . 3. zanati, essam muhammad (1997), protecting human rights within the framework of the united nations, cairo, dar al-nahda al-arabiya . 4. riad, fouad abdel moneim (1990), egyptian nationality: a comparative study, cairo, dar al nahda al arabiya . 5. shawqi, badr el-din abdel moneim (1995), mediator in private international law, cairo, (d.n .). 6. salama, ahmed abdel karim (1993), al-mabsut fi sharh al-nahda system, cairo, dar alnahda al-arabiya . 7. al-hadawi, hassan (2001), nationality and its provisions in jordanian law, amman, majdalawi publishing house . 8. al-wakil, shams al-din (2002), al-mawjiz fi nationality and status of side, alexandria, manshiet al-maaref . american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 1 www.americanjournal.org the impact of accounting information system as control and auditors on smes accounting practices assistant professor, emad al-harash, accounting department, madenat alelem university college, baghdad, iraq. e-mail: emadharesh@yahoo.com a b s t r a c t k e y w o r d s the influence of accounting information systems (ais) as control and auditor on the efficacy and efficiency of accounting processes for iraqi small and medium-sized businesses (smes) has not been thoroughly studied. this empirical study is aimed at an analysis made as to how much accounting information systems such as control and auditor may impact smes' accounting practices. the ais of smes for measured against standard or prescribed indicators of effectiveness and efficiency for accounting practices. the primary method of measuring the variables was adaption, and it used measures that were created based on earlier research. the outcomes demonstrate that the accounting information system as control and auditor has an immediate positive and significant impact on smes' accounting practices. the study adds value to the accounting literature because few works analyse how much an auditor and control’s usage of ais may affect smes' accounting practices in iraq. accounting information system, smes, accounting practices, control and auditor. introduction in response to the increasing environmental, social, and economic challenges of our times, governments in the us, uk, eu, russia, china, japan, and several other countries have started new programmes to assist small and medium-sized enterprises (smes) in their endeavours to grow and innovate. these initiatives stem from rapid technological advancements, raised awareness, and demanding customer demands. for the smes sector to actively participate in the process of development and reconstruction, the nations started off by laying the groundwork for their development plan, which included enhancing the legal and legislative framework for the sector's growth as well as promoting local economic recovery. through this development process, the sme sector's resuscitation became one of the primary pillars of the nation's strategy, transforming it into an active sector of the economy, a source of job opportunities, a facilitator of sustainable growth, and a contributor to the financing of development. the idea of using smes as a vehicle for more sustainable growth has garnered more attention than ever before, with a new policy for smes in all sectors being drawn with full potential (harash, 2017). iraq has been home to small industrial firms american journal of business management, economics and banking volume 23 april 2024 p a g e | 2 www.americanjournal.org (smes) since 1982. government criteria state that an organisation is considered small if it is lawfully registered, employs less than ten people, and has assets under $10,000,000. starting in 1983, industrial medium enterprises are defined as businesses that employ between ten and twenty-nine people, with personal investments under 10,000,000 iqd. these medium-sized businesses, which employ less than twenty-nine people and have fixed asset bases of little more than 10,000,000 iqd, are also registered as small or medium-scale companies (smes) (harash, 2014; harash, 2017). therefore, this study defines sme as an iraqi registered company that comprises 29 employees or less and assets of no more than 10,000 iqd. since small and medium-sized enterprises (smes) account for about 95% of all businesses, the relevance and application of accounting information systems (ais) for smes is crucial. available data from the central organisation for statistics (cos) in iraq shows that smes make up the majority of the country's private sector, accounting for 99% of all businesses (harash, 2014; harash, 2015; harash, 2017). when it comes to helping small business owners and managers maintain a competitive edge in the face of today's rapidly evolving business landscape, including rising client demands, quick technical advancements, and greater awareness, ais is an indispensable tool (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017). the ais is viewed as a means of providing information on management, financial, organizational, social, and operational to organizations so that financial statements can be consistent, transparent, and comparable. financial accounting in smes is the primary information source for management, creditors, lenders, and other users of smes' financial statements to organisations (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017). despite using ais, prior research has shown that smes still have inadequate system control, inefficient information management, and a high percentage of ad hoc decision-making. many smes have not taken into account ais in their operation, according to earlier literature. managers, accountants, business analysts, and other agencies can utilise accounting information systems to help smes work more effectively and efficiently by acting as control and auditors (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017; ismail & king, 2005). the topic of the current study is connected to determining the efficacy of accounting information systems as control and auditor, as well as their performance and influence on accounting practices for smes in iraq, based on the review and discussion above. thus, this study aims to explore how ais, both as auditors and as controls, affect accounting procedures in iraqi smes. you may demonstrate this by posing the following query: what effect does the efficacy of ais as an auditor and control have on the accounting procedures of smes in iraq? 2. accounting information system (ais) an information system (is) is a structured way of collecting, inputting, processing, storing, managing, controlling, and reporting data to help a company meet its goals and objectives (harash, 2014; harash, 2015; harash, 2017; soudani, 2012). a structured approach to finding, measuring, collecting, analysing, organising, understanding, and sharing accounting data is known as an accounting information system (ais). it is utilised in the execution of managerial tasks like organising, planning, and controlling organisational decision-making processes to maximise the use of resources (harash, 2014; harash, 2015; harash, 2017; ganyam & ivungu, 2019). the previous literature (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017; ganyam & ivungu, 2019; soudani, 2012; ismail & king, 2005; okour, 2016) defined aiss as the systems that collect, store, process, and distribute both american journal of business management, economics and banking volume 23 april 2024 p a g e | 3 www.americanjournal.org financial and non-financial data on the unit's activities. these systems allow for the control of information flow and the imposition of controls to ensure a high degree of relevance and reliability in the data, which is what a business needs to make informed decisions that will help the organisation achieve its objectives and, ultimately, gain a competitive advantage. the data contained in the accounting information system as control and auditor is business data pertinent to the company's business practices. smes now store, retrieve, process, and analyse their financial data using the accounting information system as a control and auditor due to increased improvements in information technology (it) (harash, 2014; harash, 2015; harash, 2017). however, one instrument that makes use of the it component to assist in managing the economic-financial activity of smes is the accounting information system, which also serves as an auditor and control system. for managers to make wise judgements, they require high-quality information. this is because smes are required to abide by the auditing procedures and internal controls (i.e., the security mechanisms it incorporates to protect sensitive data) established by ais laws (al-dmour, 2018; harash, 2014; harash, 2015; harash, 2017). accounting information system as control and auditor leads to the strategic success of smes, and support different organisational strategies, which increase the effectiveness and efficiency of accounting practices for smes. as a result, these companies' cultures become more robust and flexible, enabling them to adjust to changing market conditions and perhaps providing them with access to capital markets. in smes, the process of using ais to save accounting information assists and collecting, storing, retrieving and processing data and predicting the financial future to participate in the development quality of decisions to be effective, so the procedures and instructions must be followed consistently, as urgent necessity unavoidable (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017; ganyam & ivungu, 2019; soudani, 2012; ismail & king, 2005; okour, 2016). accounting information systems as control and auditors to smes are focused on meeting the information demands of people who are primarily interested in information on cash flows, liquidity, and solvency, such as creditors, lenders, and other users of sme financial statements (harash, 2014; harash, 2015; harash, 2017; yström, 2010), and also considering the costs to smes and the ability to prepare financial information (ganyam & ivungu, 2019; soudani, 2012; ismail & king, 2005; okour, 2016). previous studies (alnajjar, 2017; harash, 2014; harash, 2015; harash, 2017; ganyam & ivungu, 2019; soudani, 2012; ismail & king, 2005; okour, 2016; yström, 2010). previous studies conclude that ais impacts the performance and the planning, control, coordination, analysis, and decision-making in smes. the efficacy and efficiency of sme accounting procedures should rise as a result of decision-makers' utilisation of ais to gather pertinent data for strategy growth and making decision to obtain the goals and objectives of the organisation. the earlier research looked at the efficiency of ais and how they affected the performance of smes (alnajjar, 2017, harash, 2017, soudani, 2012). the findings showed that the application of ais in smes was successful in satisfying planning needs and in organising, regulating, supporting and directing the organisational decision-making process. the preceding findings also demonstrated a substantial positive relationship between the smes' performance and their capacity to provide pertinent processrelated information and the efficacy of ais. according to previous literature, (ganyam & ivungu, 2019; harash, 2014; harash, 2015; harash, 2017; soudani, 2012; yström, 2010) ais was considered a fundamental component of decision rationalisation that supports the attainment of competitive advantage and performance improvement. it also gives management access to timely, relevant, and accurate information that aids in identifying system weaknesses and strengths, enabling them to make american journal of business management, economics and banking volume 23 april 2024 p a g e | 4 www.americanjournal.org decisions that support the goals of smes and, consequently, increase their market value and wealth maximisation. the survey's content validity was determined by reviewing the body of current literature and using concepts that have been approved by other academics. according to the opinion of the researchers and previous literature, (ganyam & ivungu, 2019; harash, 2014; harash, 2015; harash, 2017; soudani, 2012; yström, 2010) in line with the researchers' attempts to measure the ais variable using a defined set of measures to ais variable metrics and indicators, the ais variable will be assessed using a seven-point likert scale ranging from (1= not at all 7) = to a higher extent utilising the following 6 items: 1. the integrity of the financial reporting process is enhanced by the data storage. 2. the data stored in enough depth to properly and accurately depict the assets of the organisation. 3. the use of data collecting might result in time and cost savings for shareholders. 4. data processing has the power to influence decisions by assisting managers in predicting the results of past, present, and future occurrences in order to assess the efficacy and efficiency of smes. 5. the quality of the financial reports improved as a result of data processing, which also made business transactions easier. 6. automated data collecting eliminates human errors in data processing and expedites the creation of financial statements. these items were developed and adopted previous studies (harash, 2014; harash, 2015; harash, 2017; soudani, 2012) to measure the ais variable for this study. 3. smes accounting practices accounting is the result of many years of business and management practices. managers and owners of the company utilise information, particularly financial, accounting, and management data, to make decisions that provide them a competitive advantage over other organisations. accounting procedures are related to offering financial and accounting solutions for management, finance, and accounting needs. accounting procedures are systems of organisational information that give a business pertinent data to benefit both its clients and itself. accounting procedures help the business make wise decisions and encourage the desired behaviours. among many other things, accounting methods might involve strategic analysis, budgeting, performance evaluation, and information for decisionmaking (harash, 2015; harash, 2017). despite the extensive research that has been conducted to investigate the smes, the effectiveness and efficiency of accounting practices for smes are included in this study. these practices include identification and recording, posting to the ledger, extracting a trial balance, adjusting the trial balance, preparing an income statement, and preparing a position statement (balance sheet). while accounting practices measurements are employed more frequently than financial performance indicators, most of the selected smes utilise both the efficiency and effectiveness of accounting practices measures to assess their performance. this is revealed by the findings of prior work. in particular, financial metrics do not give a clear or comprehensive view of the accounting procedures used by smes (jamil & mohamed, 2011; maduekwe & kamala, 2016; mjongwana & kamala, 2018). additionally, they frequently do not align with a company's corporate strategy and can even work against the company by encouraging managers to prioritise short-term success above the long-term efficacy and competitiveness of the company. it might not convey the long-term advantages of choices taken today (jamil & mohamed, 2011; harash, 2015; harash, 2017, kaplan publishing, 2012). there are many ways to measure sme performance to determine if it is american journal of business management, economics and banking volume 23 april 2024 p a g e | 5 www.americanjournal.org doing well. the most common method is to look at its gross or net profit (jamil & mohamed, 2011; maduekwe & kamala, 2016; mjongwana & kamala, 2018). this, however, is not always a reliable way to determine the smes' accounting practices. subjective or objective data can be used to assess sme accounting processes. to compare smes' accounting procedures to those of their rivals, the current study, however, examined smes' accounting practices using subjective data and the selfrating technique. the seven-point likert scale, which goes from 1 to 7, was utilised in this investigation. to gauge how much each questionnaire statement is agreed with or disagreed with by respondents. therefore, according to the opinion of the researchers and previous literature (jamil & mohamed, 2011; harash, 2014; harash, 2015; harash, 2017; maduekwe & kamala, 2016; mjongwana & kamala, 2018okour, 2016) the researchers attempt to measuring the smes accounting practices variable using a fixed set of measures to smes accounting practices metrics and indicators. a trial balance can be extracted, adjusted, prepared as an income statement, prepared as a position statement (balance sheet), posted to the ledger, identified and recorded, and posted to the trial balance are some examples of the measures of sme accounting practices that are associated with these indicators. 4. accounting information system and accounting practices smes accounting procedures and information systems smes include all of an organization's policies, activities, processes, and procedures on its core operations and business, which help it achieve its strategic goals and improve performance to guarantee positive results. they also give organisations the ability to strategically define and assess their performance (suárez, 2016). ais and accounting practices in smes show the level of day-to-day operations executed by management of smes. the performance of management is a significant contributing factor in the long-term operational success of smes and their efficiency, and prosperity (garengo & bititci, 2005; kareem, et. al., 2019). the features of ais measurement in smes and the primary variables impacting ais measurement in these organisations were discussed in the research by kareem et al. (2019) and garengo & bititci (2005). it shows that while the literature emphasises the significance of smes' accounting information systems, there is a lack of studies on smes' accounting practices. an ais as control and auditor to smes’ performance is necessary to uncover why and how ais impact accounting practices improvement in smes (de leeuw & van den berg, 2011). studies garengo & bititci, (2005); harash, (2017; 2014) & kareem, et. al. (2019) examining the link between ais and accounting practices implicitly assume that ais affects accounting practices smes in an organization, which then expedites the attainment of smes’ goals (de leeuw & van den berg, 2011). one of the main concerns for smes is ais and accounting procedures, which are of primary relevance to all company managers and owners of smes. an ais and its procedures are often evaluated based on how well they accomplish its goals and objectives (harash, 2013). additionally, smes can utilise ais and accounting practices to evaluate performance data related to possible future controls over changes in financial resources and to evaluate the quality of completed work that can be applied to future projects (khadafi & heikal, 2014), so that investors can decide whether to invest in that company. particularly, for smes, ais and accounting practices are somewhat more important than management performance, financial performance, organizational performance and social performance and its related activities. ais is a crucial tool for the smes as it serves as a control and auditor, enabling firms to effectively manage tasks and activities in tandem american journal of business management, economics and banking volume 23 april 2024 p a g e | 6 www.americanjournal.org with their core business and operations to achieve predetermined goals and objectives and ensure successful outcomes. additionally, the ais allows organisations to strategically establish and evaluate their performance (suárez, 2016). three distinct areas of a company's outcomes are covered by the accounting information system as control and auditor: financial performance, which includes things like profits, return on assets, and return on investment; product market performance, which includes things like sales and market share; and shareholder return, which includes things like total shareholder return and economic value added (richard et al. 2009). to achieve a set of goals and objectives and guarantee successful results, smes use ais as auditors and controllers to manage tasks and activities related to their core business and operations. these systems also help organisations strategically define and assess their performance. indicators, focus, result orientation, and outcomes linked to attributes like sales growth, profitability growth, market performance, shareholder return, employee growth, efficiency, effectiveness, finances, customer and employee satisfaction, and operating revenues are also included in this set of elements (harash, 2017; harash, 2014; richard et al. 2009; suárez, 2016). in addition to its conventional obligations to economic shareholders, the concept of ais as control and auditor in smes highlights the social responsibilities of smes to many stakeholders, including employees and the society at large (chen & delmas, 2011). because of this, the competitiveness of the business market no longer determines the business climate of smes; instead, sustainable innovation is taken into account for its long-term competitive advantage (harash, 2017; harash, 2014). a philosophy or way of thinking about conducting business relies on the combination and synchronisation of all smes activities, or a set of accounting practices to be executed, or a combination of these two is known as an ais as control, auditor, and accounting practices in smes (harash, 2013). this approach is aligned with the strategic mandate of the smes. as a control and auditor, ais effectively implements control methods, comprehends smes' goals, and provides information on the market, customers, competitors, suppliers, and the overall business environment. it also enables smes to plan their activities and develop winning strategies. the performance of ais as control and accounting practices determines the success of smes in the market, both locally and internationally (harash, 2013; harash, 2014, harash, 2017). to properly assess the ability of smes to apply more suitable approaches to understand and assess smes' management decision-making than conventional decision-making in large companies, managers, accountants, business analysts, and other agencies can use the accounting information system as control, auditor, and accounting practices in smes to help smes owners quantify their contribution to the smes performance to be more efficient and effective (grant, et al. 2001; harash, 2013; harash, 2015; harash, 2017). the findings of earlier research show the role that smes' accounting information system, auditor, and accounting practices play to enhance their ability to enter new markets and in identifying strategies to enhance their performance. in other words, smes need the support of these factors to thrive and endure the fierce competition in the market (negrut & mihartescu, 2016; harash, 2015; harash, 2017). generally speaking, maintaining a high index or score on all of the aforementioned factors that together define the performance of smes is highly beneficial and significant. these factors allow smes to pinpoint the specific areas in which they are deficient and work to improve on those areas. businesses that perform well are seen favourably by investors, staff, and customers alike, so they work hard to maintain and enhance this (harash, 2015; harash, 2017). american journal of business management, economics and banking volume 23 april 2024 p a g e | 7 www.americanjournal.org 5. contingency framework the study used contingency theory to develop a model to propose the arrangement of smes that relies on the accounting information system to create a need for different control mechanisms. the model describes the influencing mechanism of ais as control, and auditor on accounting practices of smes. it illustrates how the components of the accounting information system ais, such as control and auditor (i.e., data storage, support the integrity of the financial reporting process). the data stored in enough depth to properly and accurately represent the company's assets. time and money might be saved for shareholders by using data collecting. by assisting managers in forecasting the results of past, present, and future occurrences, the processing of data may influence decision-making and assess the efficacy and efficiency of smes. it demonstrates how the auditor and control (i.e., data storage) elements of the ais support the integrity of the financial reporting process. the information is kept in adequate detail to fairly and accurately depict the business's assets. data collection may help shareholders save time and money. data processing may impact decision-making and evaluate the effectiveness and efficiency of smes by helping managers predict the results of past, present, and future actions. figure (1) depicts the research framework investigated in the current study. figure (1) research model for the study american journal of business management, economics and banking volume 23 april 2024 p a g e | 8 www.americanjournal.org to investigate the functions of ais as a control and auditor on the accounting practices of smes, we initially examine the potential effects of the system, such as the integrity of the financial reporting process is enhanced by data storage. the preservation of data with enough specificity to appropriately and correctly represent firm assets. the use of data collecting might result in time and cost savings for shareholders. when evaluating the efficacy and efficiency of smes, managers may make informed decisions by using data processing to assist them in forecasting the results of past, present, and future occurrences. data processing led to an increase in the caliber of the financial reports and made business transactions easier. the process of generating financial statements is sped up and human weaknesses in data processing are overcome by automated data collection on smes accounting practices, including identification and recording, posting to the ledger, extracting a trial balance, adjusting the trial balance, preparing an income statement, and preparing a position statement (balance sheet). to respond to the primary study question, we thereby develop the following hypotheses: a. there is significant impact of accounting information system as control and auditor on identification and recording as smes accounting practices. b. there is significant impact of accounting information system as control and auditor on posting to the ledger as smes accounting practices. c. there is significant impact of accounting information system as control and auditor on extracting a trial balance as smes accounting practices. d. there is significant impact of accounting information system as control and auditor on adjusting the trial balance as smes accounting practices. e. there is significant impact of accounting information system as control and auditor on preparation of income statement as smes accounting practices. f. there is significant impact of accounting information system as control and auditor on preparation of position statement (balance sheet) as smes accounting practices. 6. results and discussion the study's population consists of accountants, direct managers, and financial managers employed by the sampled smes in iraq. because choosing the appropriate respondents required some judgment on the part of the researcher, a non-probability judgment sampling strategy was used in the study. 500 questionnaires were issued in all, 400 were returned, and 100 of which were deemed legitimate for data analysis. the spss programme version 17.0 was used to analyse the data gathered from primary and secondary sources via questionnaires. simple linear regression analysis was employed, and hypotheses were evaluated with a 95% confidence level. tables (1) and (2) revealed that, of the 400 respondents that were surveyed for this study, the majority of participants had significantly different levels of education and experience. the target audience's demographics were the major topic of the first segment, while the key questions were covered in the second. the 36 questions on the questionnaire were addressed to the accountants, financial managers, and direct managers of the smes. american journal of business management, economics and banking volume 23 april 2024 p a g e | 9 www.americanjournal.org table (1) education-information category frequency percent phd (doctorate) 40 10.0 masters 75 19.5 bachelors 240 60.0 other 45 10,5 total 400 100.0 table (2) professional-experience category frequency percent less than 5 years 152 0.38 6 10 years 180 0.45 more than 10 years 68 0.17 total 400 100.0 the study's findings showed that the internal consistency-based statistical technique for assessing reliability was valid and dependable since its cronbach's alpha value was higher than (0.702). table (3) indicates the reliability of the questionnaire. according to the cronbach's alpha test, all variables' reliability was more than (0.702). we looked for multicollinearity between the variables in order to analyse the data. table (3) reliability statistics measure cronbach’s alpha n of items accounting information system as control and auditor 0.702 6 data storage contributes to the integrity of the financial reporting process. 0.794 5 data storage in sufficient details to accurately and fairly reflect company asset. 0.712 4 data processing has capable of making a difference in a decision by helping managers to form predictions about the outcomes of past, present, and future events to evaluate the effectiveness and efficiency of smes. 0.710 5 data processing has capable of making a difference in a decision by helping managers to form predictions about the outcomes of past. 0.706 5 data processing caused the improvement of the quality of the financial reports and facilitated the process of the company’s transactions. 0.724 6 the automated data collection speed up the process to generate financial statements and overcome human weaknesses in data processing. 0.712 5 american journal of business management, economics and banking volume 23 april 2024 p a g e | 10 www.americanjournal.org table (4) shows correlations among study variables which include accounting information systems as control, auditor, and smes’ accounting practices. firstly, the correlation between accounting information system as control, auditor, and identification and recording as accounting practices in smes is (0.270) which shows that the accounting information system as control, auditor, and smes accounting practices are correlated positively, even though it is weak. secondly, accounting information systems as control and auditor, and smes’ accounting practices are positively correlated, i.e. (0.274), and the significance level is high. thirdly, accounting information systems as control, auditor, and smes accounting practices are significantly positively correlated, i.e. (0.274), and the significance level is high. fourthly, the correlation between accounting information system as control, auditor, and smes accounting practices is (0.270), which shows that the accounting information system as control, auditor, and smes accounting practices are related positively, i.e. (0.270), and the significance level is high. fifth, correlation between accounting information system as control, auditor, and smes accounting practices is (0.268) which shows that the accounting information system as control, auditor, and smes accounting practices are correlated positively, i.e. (0.268), and the significance is high. lastly, the correlation between accounting information system as control, auditor and smes accounting practices is (0.270) which shows that the accounting information system as control, auditor and smes accounting practices are correlated positively, even though the connection is weak. table 4: correlations independents variables accounting information system (ais) 1. identification and recording as accounting practices in smes. pearson correlation .270 sig.(2-tailed) .000 2. identification and recording as accounting practices in smes. pearson correlation .274 sig.(2-tailed) .000 3. posting to the ledger as accounting practices in smes. pearson correlation .274 sig.(2-tailed) .000 4. extracting a trial balance as accounting practices in smes. pearson correlation .270 sig.(2-tailed) .000 5. preparation of income statement as accounting practices in smes. pearson correlation .268 sig.(2-tailed) .000 6. preparation of position statement (balance sheet) as accounting practices in smes. pearson correlation .270 sig.(2-tailed) .000 table 5 presents the variation in smes' accounting practices as shown by the r-square accounting information system as the control and auditor. the value of r is 0.287, which explains the cumulative relationship of accounting information systems as control, auditor, and sme accounting practices. also, the table shows a 9% variation in smes' accounting practices due to accounting information american journal of business management, economics and banking volume 23 april 2024 p a g e | 11 www.americanjournal.org systems as control and auditor. the value of the f-test is (5.744), which identifies the fitness of the model with a p-value less than .05, i.e., 0.002, showing that the model fit is significant. table (5) model summary r-value .287 r square value 0.09 adjusted r squared 0.070 f value 5.744 significance value .002 table (5) r-square presents the variation in smes' accounting practices due to accounting information systems as control and auditor. r is valued at 0.287, which denotes the aggregate connection between ais as control and auditor and smes' accounting practices. also, the table shows that there is a 9% variation in smes' accounting practices due to accounting information systems as control and auditor. the model fit is significant, as indicated by the f-test value of (5.744), which finds the model's fitness with a p-value less than .05, or 0.002. table (6) regression coefficients coefficients model unstandardized coefficients standardized coefficients t sig. b std. beta constant 1.910 .391 4.906 .000 1. identification and recording as accounting practices in smes. .089 .087 .074 1.025 .312 2. identification and recording as accounting practices in smes. .295 .089 .0249 3.544 .001 3. posting to the ledger as accounting practices in smes. .294 .088 .0247 3.542 .001 4. extracting a trial balance as accounting practices in smes. .088 .087 .075 1.024 .311 5. preparation of income statement as accounting practices in smes. .027 .069 .251 .387 .698 6. preparation of position statement (balance sheet) as accounting practices in smes. .089 .086 .073 1.026 .313 table (6) displays the regression coefficients of the coefficient that show the ‘beta’ value and the average of the accounting practices of smes, a= (1.910). it indicates that an increment of a unit in ais will result in an increment of (.089) in the identification and recording of accounting practices in smes; the value of "beta" is (.295) in the identification and recording of accounting practices in smes; and the value of "beta" is (.294) in the posting of a unit increase in ais to the ledger as accounting practices in smes. the value of "beta" is .089, indicating that an increase of a unit in ais will lead to an increment of (.089) units in trial balance extraction when it comes to small-business accounting procedures. the ‘beta’ value is .089 units, indicating that a unit rise in ais corresponds american journal of business management, economics and banking volume 23 april 2024 p a g e | 12 www.americanjournal.org to a (.089) unit increase in income statement preparation as a result of accounting methods in smes. last but not least, the “beta” value of is.089 units, indicating that an increment of a unit in ais would result in an increase of (.089) units in trial balance extraction as accounting procedures in smes. it is noteworthy to see that ais contributes to the growth of trial balance extraction and income statement preparation as sme accounting procedures. 7. conclusion by offering insights into the potential impacts of accounting information systems as control and auditor on smes accounting practices in iraq, we want to fill a research vacuum on smes. thus, we investigated the connection between the accounting information system, auditor, and smes' accounting practices, and based on their findings, we discovered that: 1. the accounting information system, acting as a control and auditor, has a favourable relationship with the accounting practices of smes, eventually improving such practices. as a result, the first hypothesis (ha) is confirmed, indicating that the identification and recording of accounting procedures in smes is significantly impacted by the accounting information system as a control and auditor. it indicates that better accounting procedures for smes are caused by the accounting information system as a control. 2. the connection between the ais and smes' accounting practices was examined, and it was discovered that the system's role as control and auditor is positively correlated with the data storage in enough detail to fairly and accurately reveal the company's assets, which in turn improves the accounting practices of smes. as a result, the second hypothesis (hb), which states that the ais has a major impact on control and auditor posting to the ledger as well as smes accounting procedures, is accepted. it indicates that improved smes' accounting procedures are the result of using accounting information systems as control and auditors. 3. the connection between ais as controls and auditors and smes accounting practices was examined. it was discovered that these relationships are positive and that data processing can influence decisions by assisting managers in forecasting the results of past, present, and future events and assessing the efficacy and efficiency of smes, which in turn improves smes accounting practices. as a result, the third hypothesis (hc), which states that the auditor and accounting information system have a major influence on the trial balance extraction process as it relates to smes' accounting procedures, is accepted. it indicates that improved smes' accounting procedures are the result of using accounting information systems as control and auditors. 4. since the accounting information system serves as a control, auditors and smes' accounting practices discovered that ais is positively correlated with data processing and can influence decisions by assisting managers in generating forecasts about historical results, which eventually improves smes' accounting practices. consequently, the fourth hypothesis (hd) is accepted, indicating that the trial balance adjustment process for smes' accounting procedures is greatly impacted by the accounting information system as a control and auditor. it indicates that improved smes' accounting procedures are the result of using accounting information systems as control and auditors. 5. the fifth hypothesis (he) looks at how accounting information systems, such as control and auditors, affect the accounting procedures used by smes. data processing has been shown to increase the quality of financial reports and to expedite business transactions. it is also favourably correlated american journal of business management, economics and banking volume 23 april 2024 p a g e | 13 www.americanjournal.org with the compilation of income statements, which is a step towards improving smes accounting standards. as a result, the fifth hypothesis is accepted, indicating that the auditor and accounting information system have a major influence on the income statement preparation process as it relates to smes' accounting procedures. it indicates that improved smes' accounting procedures are the result of using accounting information systems as control and auditors. 6. the sixth hypothesis (hf) is accepted and indicates that there is a major influence of ais as control and auditor on the preparation of position statement (balance sheet) as smes accounting practices. in other words, accounting information system as control and auditor causes to have better smes accounting practices. the sixth hypothesis (hf) examines the influence of accounting information system as control and auditor on the smes accounting practices. it is found that ais is positively related with preparation of income statement as smes accounting practices which ultimately enhance the preparation of income statement as smes accounting practices. given the current surge in demand for ais among smes, which has shown to be an effective control and auditor in managing the business, this study may offer evidence in favour of ais installation. future research might thus focus on how ais affects smes' social and environmental performance reporting transparency, labour cost reduction, organisational decentralisation, social responsibility, and cost reduction. references 1. al-dmour, a. (2018). the impact of the reliability of the accounting information system upon the business performance via the mediating role of the quality of financial reporting. the international journal of accounting and business society, 26(1), 78-111. 2. alnajjar, m. (2017). impact of accounting information system on organizational performance: a study of smes in the uae. retrieved from research gates: https://www. researchgate. net/publication/324062452. 3. chen, c. m., & delmas, m. (2011). measuring corporate social performance: an efficiency perspective. production and operations management, 20(6), 789-804. 4. choudhary, s., nayak, r., dora, m., mishra, n., & ghadge, a. (2019). an integrated lean and green approach for improving sustainability performance: a case study of a packaging manufacturing sme in the uk. production planning & control, 30(5-6), 353-368. 5. de leeuw, s., & van den berg, j. p. (2011). improving operational performance by influencing shopfloor behavior via performance management practices. journal of operations management, 29(3), 224-235. 6. ganyam, a. i., & ivungu, j. a. (2019). effect of accounting information system on financial performance of firms: a review of literature. journal of business and management (iosrjbm), e-issn: 2278-487x, p-issn: 2319-7668. volume 21, issue 5. (39-49) 7. garengo, p., biazzo, s., & bititci, u. s. (2005). performance measurement systems in smes: a review for a research agenda. international journal of management reviews, 7(1), 25-47.. 8. grant, k., gilmore, a., carson, d., laney, r., & pickett, b. (2001). “experiential” research methodology: an integrated academic-practitioner “team” approach. qualitative market research: an international journal, 4(2), 66-75. american journal of business management, economics and banking volume 23 april 2024 p a g e | 14 www.americanjournal.org 9. harash, e. (2015). the role of environmental uncertainty in the link between accounting information system and performance small and medium enterprises in iraq. global journal of management and business research. 10. harash, e. (2017). accounting performance of smes and effect of accounting information system: a conceptual model. global journal of management and business research. 11. harash, e., alsaad, f. j., & ahmed, e. r. (2013). moderating effect of market practices on the government policy—performance relationship in iraq smes. american journal of economics, 3, 125-130. 12. harash, e., suhail, a., & ahmed, r. (2014). the influence of accounting information systems (ais) on performance of small and medium enterprises (smes) in iraq. journal of business and management, 3 (4), 48-57. 13. harash, e., yahya, s. b., ahmed, e. r., & alsaad, f. j. (2013). impact of government policies in the influence of market practices on financial performance of small and medium enterprises (smes) in iraq. journal of accounting and business (jab), 13(2). 14. ismail, n. a., & king, m. (2005). firm performance and ais alignment in malaysian smes. international journal of accounting information systems, 6(4), 241-259. 15. jamil, c. m., & mohamed, r. (2011). performance measurement system (pms) in small medium enterprises (smes): a practical modified framework. world journal of social sciences, 1(3), 200-212. 16. kareem, h. m., aziz, k. a., maelah, r., yunus, y. m. & dauwed, m.a. (2019). enterprises performance based accounting information system: success factors. asian journal of scientific research. volume: 12 | issue: 1 | page no.: 29-40. 17. khadafi, m., & heikal, m. (2014). financial performance analysis using economic value added in consumption industry in indonesia stock exchange.“. american international journal of social science” july, 3(4), 219-226. 18. kraus, s., burtscher, j., niemand, t., roig-tierno, n., & syrjä, p. (2017). configurational paths to social performance in smes: the interplay of innovation, sustainability, resources and achievement motivation. sustainability, 9(10), 1828. 19. maduekwe, c. c., & kamala, p. (2016). performance measurement by small and medium enterprises in cape metropolis, south africa. problems and perspectives in management, 14(2), 46-55. 20. mjongwana, a., & kamala, p. n. (2018). non-financial performance measurement by small and medium sized enterprises operating in the hotel industry in the city of cape town. african journal of hospitality, tourism and leisure. 21. negrut, m. l., & mihartescu, a. a. (2016). market study on performance of the marketing function in small and medium enterprises in romania. procedia-social and behavioral sciences, 221, 119-125. 22. okour, s. m. (2016). the impact of the effectiveness of accounting information systems on operational performance in public listed industrial companies in jordan. journal of social sciences (coes&rj-jss), 5, 263-276. 23. richard, p. j., devinney, t. m., yip, g. s., & johnson, g. (2009). measuring organizational performance: towards methodological best practice. journal of management, 35 (3), 718-804. american journal of business management, economics and banking volume 23 april 2024 p a g e | 15 www.americanjournal.org 24. seo, y. w., & lee, y. h. (2019). effects of internal and external factors on business performance of start-ups in south korea: the engine of new market dynamics. international journal of engineering business management, 11, 1847979018824231. 25. soudani, s. n. (2012). the usefulness of an accounting information system for effective organizational performance. international journal of economics and finance, 4 (5), 136-145. 26. suárez, c. a. (2016). best management practices: smes’ organizational performance management based on internal controls in mexico. journal of international business and economics, 4(2), 41-58. 27. waititu, j. w. (2016). relationship between strategy implementation and performance in commercial banks in nairobi county kenya. international journal of business and management, 11(9), 230-253. 28. widya-hastuti, a., talib, n. b. a., wong, k. y., & mardani, a. (2016). the role of entrepreneurship for sustainable innovation through process innovation in small and mediumsized enterprises: a conceptual framework. international journal of economics and financial issues, 6(3s), 83-91. 29. wood, d. j. (2010). measuring corporate social performance: a review. international journal of management reviews, 12 (1), 50-84. 30. yström, a. (2010). financial reporting in entrepreneurial smes: in search of significant areas of financial reporting information (doctoral dissertation, jönköping international business school). american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 250 www.americanjournal.org assessment compliance with iso37001:2019 anti-bribery management system requirements-a case study in the iraqi integrity commission hayder jabber jasim ph.d. candidate department of management, faculty of economics and management of sfax (fsegs), modils research unit, university of sfax, tunisia. h.alghelany@gmail.com raoudha kammoun senior lecturer in department of management, faculty of economics and management of sfax (fsegs), modils research unit, university of sfax, tunisia raouda.kammoun@fsegs.usf.tn a b s t r a c t k e y w o r d s the research aims to identify the extent to which the requirements of the anti-bribery management system are available in accordance with the standard (iso 37001:2019) in the integrity commission, by evaluating the commission’s actual compliance with the requirements of the standard. in order to achieve this goal, the case study approach was adopted and the checklist was adopted for the purpose of measuring the gap the results of the research showed that the reality of applying the anti-bribery system in the authority compared to the requirements of the standard has reached 45%, which is close to being partially applied and undocumented, and this indicates that there is a gap of 55%, which can be addressed through continuous improvements and management review of the system and solving documentation and application problems for some requirements, especially since the central bank is in its infancy to implement the system. anti-bribery system 37001-2019, iso introduction there is no doubt about the multiplicity of challenges facing organizations as a result of rapid changes in political, economic, social and technological conditions, and thus the international organization for standardization issued the international standard (iso 37001) in (2019) entitled anti-bribery management system, the requirements of which can be applied to a wide range of activities and demonstrate the need to the existence of a methodology for building an administrative system to comply with the requirements of the anti-bribery system in organizations, and this is what is provided by the international standard (iso 37001-2019), which is concerned with the ability of organizations american journal of business management, economics and banking volume 23 april 2024 p a g e | 251 www.americanjournal.org to create and verify the work of a plan for how to combat or limit the occurrence of bribery and ensure the maintenance of operations and the ability to continue work after the occurrence of bribery, i.e. cases of corruption in general. the current research included examining and analyzing the level of implementation and actual documentation of the terms of the anti-bribery management system specification (iso 37001-2019) in the iraqi integrity commission. the case study approach was adopted to achieve these goals, and the checklist prepared in accordance with the requirements of the standard was adopted for the purpose of data collection. a number of statistical methods were used (the weighted arithmetic mean and the percentage to measure the extent of compliance with the requirements of the standard to measure the application gap. the research reached a number of conclusions and recommendations, the most important of which is that the integrity has all the requirements for applying the standard and obtaining the certificate, but it faces some problems in documentation, application and adequate support by the senior management, and that the senior management needs to be aware of the importance of its support for the anti-bribery management system and obtaining the certificate. the contents of the research were divided into four sections: the first section: it was divided into two axes, the first was the research methodology, and the second was previous studies. the second section is devoted to the theoretical framework. the third section was devoted to the practical aspect and was divided into two axes: the first was the location where the research was conducted, while the second was measuring the application gap. finally, the research ended with the fourth section: which included conclusions and presenting recommendations. the first section / research methodology and previous studies within this section, the research methodology will be addressed, which includes the problem, objectives, and importance of the research, as well as data collection methods and analysis tools, as well as some previous studies. the first axis: research methodology first: the research problem the iraqi integrity commission, as the main institution in the state, undertakes to identify, manage integrity and follow up cases of bribery and administrative corruption in general in the country in a way that contributes to helping government agencies achieve the required balance, prevent cases of bribery and meet the desired goals of administrative reform. given the security and economic conditions that the country is exposed to, it has the authority faces many risks that affect the performance and success of its work, and through the researcher's field visit to the authority, he may sense that there is an interest in the specification related to the anti-bribery management system (iso 37001-2019), which defines the main requirements that directly affect the reduction or elimination of bribery almost definitively, whether it was applied in the commission, but the commission still suffers from deficiencies in application, which paved the way for delving into this area because of its importance to the commission, and thus the research problem can be expressed by raising the following questions: 1does the integrity commission have a clear and sufficient perception of anti-bribery management systems in accordance with the standard (iso 37001-2019) and its role in anti-bribery management? american journal of business management, economics and banking volume 23 april 2024 p a g e | 252 www.americanjournal.org 2to what extent are the requirements of the anti-bribery management system (iso 37001-2019) compatible with the actual reality in the integrity commission? 3does the integrity commission have the qualification requirements to obtain a certificate of conformity to the international standard (iso 37001-2019) from donor agencies? second: research objectives: the research aims at the following: 1directing the attention of officials and employees of the integrity commission and introducing them to the importance of the anti-bribery management system (iso 37001-2019) by reviewing the requirements of the standard. 2measuring and analyzing the gap between the actual reality of the integrity commission’s antibribery management system and the requirements of the standard (iso 37001-2019) 3bridging the gap by providing some recommendations to the authority’s management that contribute to implementing the requirements of the anti-bribery management system (iso 370012019) third: the importance of the research: the importance of the research is confirmed through its contribution to achieving the following: 1this research derives its importance from the importance of the topic, which is the anti-bribery management system, and the amount of moral and material return that can be achieved in the authority if the results and recommendations are taken into account. 2this research will contribute to identifying the procedures that must be followed when employees perform their work to avoid any interruption of the authority’s work. 3it will help reduce the amount of bribery risks to which the authority is exposed if the requirements of the standard (iso 37001-2019) are approved or adopted.. the second topic / theoretical framework of the anti-bribery management system the first axis: bribery first / the concept of anti-bribery management systems, requirements with instructions for use (as iso 37001: 2019) the importance of iso (iso 37001-2019) obtaining the iso 37001-2019 certificate enables institutions to do the following: (saeed and ahmed: 2014, 15) areducing the risk of bribery by applying financial controls in the initial stages and conducting continuous improvement in the anti-bribery practice. bgaining a competitive advantage t-ensuring the loyalty of business partners and customers. dpreventing, detecting and addressing the risks of bribery cenhancing confidence hreducing costs gpreventing conflicts of interest dpromoting a culture of anti-bribery second: the main requirements for implementing the iso anti-bribery system (iso 37001-2019) given the extremely important requirements of this standard in combating bribery in organizations in general, they must be reviewed from the specification and as in the below. american journal of business management, economics and banking volume 23 april 2024 p a g e | 253 www.americanjournal.org table (3) specification items (iso 37001-2019) 1field 1planning 6-1 measures to confront risks and opportunities 6-2 objectives of combating bribery and planning to achieve them 2normative references 2support 7-1 resources 7-2 efficiency 7-3 recruitment process 7-4 awareness and training 7-5 communication 7-6 documented information 3terms and definitions 3process 8-1 operational planning and control 8-2 due diligence 8-3 financial controls 8-4 non-financial controls 8-5 implement anti-bribery controls 8-6 anti-bribery obligations 8-7 gifts, hospitality, donations and similar benefits 8-8 managing the inadequacy of anti-bribery controls 8-9 raising concerns 8-10 investigate and deal with bribery 4the context of the organization 4-1 understanding the organization and its context 4-2 understand the needs and expectations of stakeholders 4-3 determine the scope of the anti-bribery management system 4-4 anti-bribery management system 4-5 evaluating the risks of bribery 9evaluating performance 9-1 monitoring, measurement, analysis and evaluation 9-2 internal audit 9-3 management review 9-3-1 review of senior management 9-3-2 board of directors review 9-3-3 audited by the anti-bribery compliance function 5driving 5-1 leadership and commitment 5-2 governing body 5-3 administrative board (senior management) 5-4 anti-bribery policy 5-5 roles and responsibilities 5-6 anti-bribery compliance function 10improvement 10-1 non-conformity and corrective action 10-2 continuous improvement american journal of business management, economics and banking volume 23 april 2024 p a g e | 254 www.americanjournal.org the third topic / the practical side of the research the effort in this topic focuses on the site for conducting the research (the integrity commission). this concerns the first axis, while the second axis is measuring and analyzing the application gap to achieve the goals. the first axis: the location of the research first: a brief overview of the integrity commission the integrity commission is one of the agencies that was established within the framework of efforts to prevent and combat corruption under the regulatory law issued by the (dissolved) governing council attached to the dissolved coalition provisional authority order no. 55 of 2004, which was canceled after the issuance of a new integrity commission law no. 30 of 2011. the integrity commission is one of the state institutions are financially and administratively independent and subject to the oversight of the house of representatives. they have several means to achieve their desired goal of preventing and combating corruption, the most important of which is giving them the authority to investigate cases of administrative and financial corruption. the integrity commission is the important institution entrusted with managing one of the most important and dangerous tasks, which is combating corruption and protecting public money. the second axis: evaluating compliance with the requirements of the anti-bribery management system iso 37001-2019 at the integrity commission and analyzing the results: within this axis, the extent of availability of the anti-bribery system requirements in the integrity commission will be measured and analyzed by adopting the checklist prepared in accordance with the aforementioned specification to determine the level of implementation and identify the gap in order to answer the research questions as follows: 1domain: iraqi integrity commission 2normative references: standard iso 37001-2019 3terms and definitions as mentioned in the specification organization context: the iso 37001-2019 standard specifies the context of the organization through a set of requirements mentioned above. the checklist recorded the results of implementing and documenting requirement (4) in the body at a rate of (4) and a conformity rate of (85%), which indicates the presence of a nonconformity gap of (15%). %) caused by: aweakness in documenting and identifying potential risks through meetings or management reviews, despite their full implementation. bpartial documentation of the authority’s determination of its appetite for risk and dealing with it, despite its full implementation. cweakness in documenting and defining the limits and possibilities for implementing the antibribery system despite its full implementation ddthe authority’s failure to document the implementation, maintenance and improvement of the anti-bribery system in accordance with the specification despite its partial implementation. 4) gap analysis and checklist for conforming to requirements (iso 37001:2019) organization context t.4 organizational context: extent of conformity with the standard american journal of business management, economics and banking volume 23 april 2024 p a g e | 255 www.americanjournal.org 4.1 understanding the organization 5 4 3 2 1 completely applied totally documented and fully applied partially notarized partially applied partially notarized partially applied not documented not implemented undocumented 1 the authority identifies internal and external issues related to the purpose of the authority and that affect its ability to achieve the expected results of the anti-bribery management system √ 2 the authority defines and documents activities, functions, and relationships with external parties. √ 3 the authority determines its willingness to take risks and deal with them. √ 4 the authority clearly defines the scope and purpose of the anti-bribery management system. √ 5 the authority identifies potential risks through management meetings or reviews. √ 4.2 understand the needs and expectations of stakeholders 6 the authority identifies the concerned parties related to the anti-bribery management system, including (customers, legislative bodies, society, universities, schools, employees, etc.). √ 7 the authority determines the needs, requirements and expectations of the concerned parties. √ 3.4 determine the scope of the anti-bribery management system 8 the authority determines the limits and capabilities of applying the anti-bribery management system. √ 9 the authority determines the scope of the anti-bribery management system, taking into account its internal and external issues. √ 10 the authority sets the requirements for the anti-bribery management system as information that is available and documented for all. √ 4.4 anti-bribery management system 11 the authority establishes, implements, maintains and improves the anti-bribery management system in accordance with iso 370001: 2019 √ repeats 5 5 0 1 0 the score is 25 20 0 2 2 execution rate is 47/11 = 4 percentage 47 / (11 x 5) = 85% -leadership the standard (iso 37001: 2019) specified the leadership clause through a set of requirements that appear in table (5). a list for examining the results recorded the extent to which requirement (5) was applied and documented in the integrity commission, with a rate of (2) and a matching rate of (33%), which affects there is a non-conformity gap of (67%) due to: • the commission's failure to document the commitment of senior management to support the antibribery management system, despite its partial implementation. • there are no goals, especially combating bribery, declared in the integrity commission's guide. there is no documentation and full implementation of the policy's commitment to continuous improvement, documentation and making the policy available to all. american journal of business management, economics and banking volume 23 april 2024 p a g e | 256 www.americanjournal.org there is no complete application and documentation of the compliance of senior management with the management system requirements (iso 37001: 2019), and no reports are submitted on the performance of the anti-bribery system to senior management partial and undocumented implementation of the policy commitment to meet anti-bribery requirements a partial and undocumented application of the work of senior management on the continuous improvement of the anti-bribery management system 5 (checklist and gap analysis to comply with the requirements of iso 37001: 2019) leadership 5. leadership 1.5 leadership and commitment 12 the bank's senior management is committed to supporting and approving the anti-bribery management system. √ 13 senior management sets the objectives of the anti-bribery management system in line with the strategic direction in the authority’s operations √ 14 the senior management directs the bank’s employees to contribute to the anti-bribery management system √ 15 senior management works to continuously improve the anti-bribery management system √ 5.2 policy 16 senior management is working to develop an anti-bribery management system policy to be appropriate for the authority’s purpose√ 17 the policy includes a commitment to meet system-related requirements √ 18 the policy includes a commitment to continuous improvement. √ 19 the policy must be available to everyone and documented. √ 5.3 roles and responsibilities 20 the bank’s senior management includes defining roles and responsibilities related to the antibribery management system √ 21 senior management conforms the management system to the requirements of specification 370012019 √ 22 submits reports on the anti-bribery management system √ repeats 0 0 0 8 4 result 0 0 0 16 4 implementation rate 20/12=2 percentage 20/(12 x 5) 100 = 33% -planning the standard (iso 37001: 2019) specifies the planning item through a set of requirements that appear in table (7). the checklist recorded the results of the extent of application and documentation of requirement (6) in the integrity commission at a rate of (1) and a compliance rate of (29%), which indicates the presence of the non-compliance gap of 71% despite the existence of an anti-bribery initiative implementation plan is due to: partial application and partial documentation of the administration’s establishment of procedures to deal with risks and opportunities, as the integrity commission determines the activities of all individuals authorized to enter work sites through the approval of the information staff to enter the american journal of business management, economics and banking volume 23 april 2024 p a g e | 257 www.americanjournal.org concerned parties and visitors, provided that they have a book explaining the work that the owner wishes to do. failure to document the effectiveness of the specified procedures and to integrate and implement the procedures into the operations of the anti-bribery management system, even though they are partially implemented. the authority’s senior management did not establish an anti-bribery management system, as there are no goals declared in the authority’s manual, thus it is not documented. there is no continuous monitoring, updating, documenting and maintaining the goals despite the implementation of the anti-bribery initiative. 6 (iso 37001: 2019 checklist and gap analysis) 6planning 6-1 procedures for dealing with opportunities and risks 23 management establishes procedures to deal with risks and opportunities √ 24 integrating and implementing procedures into the operations of the anti-bribery management system √ 25 evaluate the effectiveness of identified actions √ 6-2 objectives of combating bribery and planning to achieve them 26 the authority’s senior management sets the objectives of the anti-bribery management system √ 27 the objectives are consistent with the authority’s quality policy √ 28 the goals set are measurable. √ 29 the set goals are announced to all those involved in the authority’s work √ 30. monitor goals constantly and update them √ 31 documents goals and maintains them √ repeats 0 0 1 2 6 the result is 0 0 3 4 6 implementation rate 13/9=1 percentage 13 / (9 x 5) x 100 = 29% 1support the standard (iso 37001: 2019) specifies the support requirement through a set of requirements that appear in table (7), if the checklist records the results of the extent of application and documentation of requirement (7) in the integrity commission at a rate of (4) and a compliance rate of (82%), which indicates there is a non-conformity gap of 18% resulting from: weakness in documenting the provision of appropriate training and education for individuals to achieve the necessary competence if there is no training program specialized in the anti-bribery system and the practice of applying the provisions of the specification (iso 37001: 2019)) and there are courses related to the anti-bribery management system for individuals, which is fully implemented. partial implementation of the authority’s appointment of the necessary competencies for individuals influencing the performance of the authority’s activities, as not all individuals influencing the performance of the authority’s activities are appointed and partially undocumented. lack of documentation of the contribution of working individuals to the effectiveness of the antibribery system and improving performance despite its partial implementation. american journal of business management, economics and banking volume 23 april 2024 p a g e | 258 www.americanjournal.org there is no complete application and documentation to ensure that employees have awareness and familiarize themselves with the general policy and anti-bribery policy and to educate employees about the legal and regulatory requirements and their role in meeting them. 2table 7) checklist and gap analysis to comply with the requirements of (iso 37001: 2019) support 7support 7-1 resources 32 the authority determines the availability of resources required to implement and maintain continuous improvement of the anti-bribery management system. √ 7-2 efficiency 33 the authority appoints the necessary competencies of individuals influencing the implementation of activities √ 34 providing appropriate training and education for individuals to achieve the necessary competence √ 35 take appropriate measures to acquire the necessary competencies to work in the anti-bribery management system √ 36 maintaining education, training, skills and experience information is evidence of appropriate competence √ 7-3 awareness 37 the authority determines a program to educate workers about their roles that are required to be performed during incidents of chaos. √ 38 the authority ensures that employees have full awareness of the anti-bribery policy √ 39 working individuals contribute to the effectiveness of the anti-bribery system and improve performance √ 7-4 contact 40 the authority determines the communication related to the anti-bribery system. √ 41 specifies the call time. √ 42 determine who should be contacted. √ 43 determine the party responsible for the communication process. √ 44 identify the processes affected by communication √ 45 management includes the flow of communication during bribery √ 46 facilitating organized communication with the competent authorities during bribery cases √ 7-5 documented information 7-5-1 general requirements 47 determine the documented information required according to iso 37001-2019 √ 48 documenting individuals’ competency information. √ 49 documentation of policy and scope. √ 50 documenting procedures for dealing with risks and opportunities √ 51 ensuring that documented information is available for use when needed. √ 5-7-2 innovation and modernization 52 an appropriate identification and description of each of (title, date, reference). √ 53 determine the language of information and documentation media (electronic paper). √ 54 ensure that documented information is sufficient and fit for purpose √ 5.7.3 monitor documented information american journal of business management, economics and banking volume 23 april 2024 p a g e | 259 www.americanjournal.org 55 ensure that documented information is adequately protected against confidentiality, correct use, or loss of integrity. √ 56 accessibility and retrieval use of documented information. √ frequencies 11 8 4 1 1 the result is 55 32 12 2 1 implementation rate 102/52 = 4 percentage 102 / (25 x 5) x 100 = 82% the operation : the standard (iso 37001: 2019) specifies the operating requirements through a set of requirements that appear in the table below. the checklist recorded the results of the extent of application and documentation of the requirement (8) in the integrity commission, with a rate of (2) and a conformity rate of (37), which indicates the presence of a gap for non-conformity. (63%), resulting from: • partial implementation and partial documentation of control over the processes required to meet anti-bribery requirements. • partial implementation and partial documentation to specify instructions, especially in dealing with errors or exceptional circumstances. • lack of documentation of procedures and arrangements for crisis management in the integrity commission, despite their partial implementation. • lack of a plan to manage anti-bribery within a pre-determined time frame. • there is no documentation of the evaluation results, which could lead to business interruption. • the bank does not establish a specific formula for analyzing and evaluating the impact of a business as a result of being exposed to a sabotage incident • there is no anti-bribery strategy approved by the authority’s senior management, and therefore there is no documented strategy for recovering and resuming the authority’s priority activities. • the authority did not establish requirements for a proactive anti-bribery plan. 8 gap analysis and checklist for conforming to process requirements (iso 37001:2019) 8operation 8-1 operational planning and control 57 the authority plans, implements and monitors the processes required in anti-bribery requirements in accordance with iso 37001-2019 √ 58 plans are implemented to achieve the objectives of combating bribery in clause (6) √ 59 the authority determines and monitors operations outside it 8-2 business impact analysis and risk assessment 60 the authority establishes a specific formula for analyzing and evaluating the impact of actions as a result of being exposed to an accidental accident √ 61 determines the outputs required in business impact analysis and risk assessment. √ 62 documenting evaluation results that could lead to business interruption. √ 3.8 anti-bribery strategic plan 63 the authority shall develop an anti-bribery strategy and stop procedures √ 64 the authority sets requirements for responding to incidents in various resources (individuals, buildings, etc.) √ 65 the authority sets the requirements for a proactive anti-bribery plan √ american journal of business management, economics and banking volume 23 april 2024 p a g e | 260 www.americanjournal.org 68 the authority establishes, implements and maintains procedures for detecting and monitoring bribery attempts and internal and external communication √ 69 the authority shall develop a plan to manage the anti-bribery system according to a predetermined time frame√ 70 the authority shall establish documented procedures for control systems to benefit from and return to the temporary measures taken for normal business tasks. √ 71 the authority chooses its anti-bribery procedures to ensure that they are in line with the objectives √ for frequencies of 1 0 2 5 7 the result is 5 0 6 10 7 implementation rate 27/15=2 percentage 28 / (15 x 5) x 100 = 37% 1performance evaluation the standard (iso 37001: 2019) specifies the requirement for performance evaluation through a set of requirements that appear in the table below. the checklist recorded the results of the extent of application and documentation of requirement (9) in the integrity commission at a rate of (1) and a compliance rate of (29%), which indicates the presence of a gap. non-conformity rate (71%), resulting from: • the integrity commission did not document the assessment of anti-bribery performance and determine methods for monitoring, measuring and analyzing, despite their partial implementation. • partial application of preparing documented reports after each evaluation process and not documenting them. • the bank partially implements the necessary procedures to address adverse results before nonconformities occur, and there are no documented reports of this process. • lack of documentation of the evaluation of anti-bribery procedures to ensure their suitability, efficiency and effectiveness, despite their partial implementation. • there is no audit of the anti-bribery management system and therefore there is no documentation. • lack of an internal audit plan and program. • as a result of the beginning of the implementation of the anti-bribery management system in accordance with iso 37001:2019 at the integrity commission, there was no review by senior management to follow up on the requirements of the system, as there was no audit to determine its suitability and effectiveness to achieve the anti-bribery policy. also, no period was specified. specific for that review. • lack of audits of the anti-bribery management system, due to the integrity commission’s lack of an information system that enhances the requirements for management review of the integrity commission’s policy, goals and objectives and follow-up procedures and the lack of evidence in accordance with the system that can be adopted for audit purposes. table 9) checklist and gap analysis to comply with the requirements of (iso 37001: 2019) performance evaluation 9performance evaluation 9-1 monitoring, measurement, analysis and evaluation 72 the authority is working to evaluate the performance of combating bribery √ 73 the authority determines the methods of monitoring, measurement, analysis and evaluation √ american journal of business management, economics and banking volume 23 april 2024 p a g e | 261 www.americanjournal.org 74 preparing documented reports after each evaluation process. √ 75 the authority takes the necessary measures to address adverse results before non-conformities occur √ 76 the authority evaluates anti-bribery procedures to ensure their suitability, efficiency and effectiveness √ 77 these evaluations are conducted through periodic reviews and planned periods of time. √ 9-2 internal audit 78 the authority conducts internal and external audits within a planned period of time to provide information on combating bribery with the authority’s own requirements √ 79 conformity with the specification. √ 80 ensuring that audit reports are submitted to senior management. √ 81 maintaining documented information on audit results √ 3.9 management review 82 the authority reviews the anti-bribery management system within specific periods of time to ensure its efficiency and effectiveness √ 83 the outputs of management reviews include decisions regarding opportunities for continuous improvement and the need for changes in the system √ 84 the authority maintains documented information on the results of management reviews √ repeats 0 0 0 6 7 the result is 0 0 0 12 7 implementation rate 19/3 = 1 percentage 19/(13 x 5) x 100 = 29% 2improvement the standard (iso 37001: 2019) specifies the “improvement” requirement through a set of requirements that appear in the table below. the checklist recorded the results of the extent of application and documentation of requirement (10) in the integrity commission at a rate of (1) and a compliance rate of (20%), which indicates there is a non-conformity gap of (80%) due to: • the integrity commission did not establish procedures to control and correct non-compliance with system requirements. • the integrity commission did not specify the procedures for eliminating cases of non-conformity • the authority did not review the corrective measures taken. • not specifying the reasons for the mismatch. • there is no assessment of the need for corrective action • the documented information is incomplete, and there is no documentation of improvement processes. • there is no implementation and documentation to ensure continuous improvement of the system through policies, audit results, management review, and corrective actions. 10 (checklist and gap analysis for compliance with iso 37001: 2019 requirements) improvement 10 improvement 10-1 non-conformity and corrective action 85 the bank establishes procedures to control and correct non-conformities with system requirements √ 86 the authority shall determine the procedures for eliminating cases of non-conformity. √ american journal of business management, economics and banking volume 23 april 2024 p a g e | 262 www.americanjournal.org 87 the authority reviews the corrective measures taken √ 88 determine the reasons for the mismatch. √ 89 evaluate the need for corrective action √ 2.10 continuous improvement 90 the authority ensures procedures for continuous improvement of the efficiency, suitability and effectiveness of the anti-bribery management system. √ 91 ensure continuous improvement of the system through policies, audit results, corrective actions, and management review. √ iterations 0 0 0 0 7 score 0 0 0 0 7 the execution rate is 7/7 = 1 percentage 7 / (7 x 5) x 100 = 20% the results of the checklist for specification requirements can be summarized as in the table below: (11) summary of the results gap percentage/compliance rate implementation rate evaluation scores requirements 15% 85% 4 11 4the context of the organization 67% 33% 2 12 5leadership 71% 29% 1 9 6planning 18% 82% 4 25 7support 63% 37% 2 15 8operation 71% 29% 1 13 9performance evaluation 80% 20% 1 7 10improvement the fourth topic / conclusions and recommendations the first axis: conclusions the results of the current research led to a set of conclusions as follows: 1it is clear that the total rate achieved by measuring the availability of anti-bribery system requirements in the integrity commission obtained a percentage that reached (iso 37001: 2019) bribery according to 45% and an implementation rate of (2), meaning that it is close to partially implemented and not documented, which created a gap of ( 55% this is what answers the second question of the research questions. 2the authority identifies relevant internal and external issues, documents activities and relationships with the concerned parties, as well as determines their needs and expectations. this confirms that the requirements of the organization’s context received a high percentage, but the authority is still in its infancy in terms of implementing the anti-bribery system in accordance with the above specification. to combat bribery, the integrity commission uses documentation and administrative application system 3lacking 4weak support and interest from senior management in clarifying the contents and basic principles of the anti-bribery system and communicating them to all working individuals and beneficiaries, which resulted in the absence of an announced and documented anti-bribery policy in the authority to improve anti-bribery performance, as well as the absence of specific anti-bribery goals. american journal of business management, economics and banking volume 23 april 2024 p a g e | 263 www.americanjournal.org 5the authority specifies in its program training courses in the field of the anti-bribery system, especially courses related to the iso 37001-2019 standard, to increase awareness and achieve the necessary efficiency towards the need to implement the aforementioned standard. 6the authority determines who should be contacted and the party responsible for contacting them, as well as determining the time of communication, because this is considered important and essential in their daily work. 7the authority ensures that documented information is protected in an appropriate manner for confidentiality or correct use and the possibility of access, retrieval and use of documented information. 8it became clear through personal interviews that the authority possesses the qualification requirements to obtain the certificate, but it faces some problems in documenting and implementing some of the requirements of the standard because the authority is in the beginning of implementing the system, and this is what answers the third question of the research. the second axis / recommendations this axis includes a number of recommendations for the authority's management, as follows: 1the integrity commission’s management must seek to fill the gap in the anti-bribery system in accordance with the specification (iso 37001-2019) and according to the results of the research in the event that it wishes to obtain the certificate. 2the need for the administrative leadership of the authority to be aware of the importance of supporting the application of the anti-bribery system, which is consistent with its strategy and values. 3follow modern methods and methods to solve documentation problems, as documentation is an essential item for improving the anti-bribery management system. 4forming a work team that undertakes the task of preparing the requirements for the application of the iso 37001-2019 standard, works to meet its requirements and is associated with senior management to facilitate support, powers and support with resources. 5documenting all information related to the improvement and development of the anti-bribery system, keeping it as documented information, maintaining it, and updating it periodically. references 1haroun noura 2017, the crime of bribery in algerian legislation, a study in light of the united nations convention against corruption, published doctoral thesis, algeria, mouloud mammeri university tizi ouzou, faculty of law and political sciences 2muhammad ali hassan ahmed, the crime of international bribery, “an analytical study in light of international agreements and national legislation,” al-zaytoonah university of jordan journal for legal studies, volume (2) issue (3) 2021) 3the annual report of the iraqi integrity commission for the year 2023 4international standard conformity iso 37001-2019 requirements, guidance and usage guides 5vagias, wade m., (2006) “likert-type scale ",cemson international institute for tourism, department of parks, recreation and tourism management clemson university, usa, p: 2 6fasa, a. w. h., & sani, s. y. (2020). sistem manajemen anti-penyuapan iso 37001: 2016 dan pencegahan praktik korupsi di sektor pelayanan publik. integritas: jurnal antikorupsi, 6(2), 187208 7brescia, v. (2017). corruption and iso 37001: a new instrument to prevent it in international entrepreneurship . american journal of business management, economics and banking volume 23 april 2024 p a g e | 264 www.americanjournal.org 8laela, e., & isnaini, i. (2021, november). kajian integrasi dokumen sni iso 9001: 2015 dengan sni iso 37001: 2016 di balai besar kerajinan dan batik. in prosiding seminar nasional industri kerajinan dan batik (vol. 3, no. 1, pp. 07-1) 9www.webstore.ansi.org 10www.continuitycentral.com, www.bsigroup.com, www.iso.org ) http://www.webstore.ansi.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 155 www.americanjournal.org development of digitаl educаtionаl resources in foreign countries (usа, greаt britаin, germаny) samandarov zuxriddin raup o’g’li tаshkent stаte university of economics. chief specialist of the academic activities management department samandarovzukhriddin@gmail.com a b s t r a c t k e y w o r d s the аrticle exаmines the stаte аnd development of vаrious digitаl educаtionаl products аnd services in а number of foreign countries: usа, greаt britаin, germаny. the choice of such different countries аllows us to give а more complete comprehensive picture of the goаls аnd objectives of the use of digitаl resources, аs well аs to аssess their current stаte аnd wаys of development. such аn аnаlysis is relevаnt due to the rаpidly developing globаl trend of digitаlizаtion of аll levels of educаtion. the аrticle presents the results of theр study of 31 educаtionаl digitаl resources from the аbove countries, the chаrаcteristics of eаch resource, its opportunities, goаls, objectives аnd tаrget аudience. in the future, during the continuаtion of the study, аn аnаlysis аnd expert аssessment of аll these resources will be proposed аccording to а number of criteriа аnd pаrаmeters. educаtion, digitаlizаtion, digitаl educаtionаl resources, compаrаtive аnаlysis.. introduction digitаlizаtion is becoming one of the key globаl trends in the development of аll levels of educаtion. digitаlizаtion аffects not only the chаnge in the meаns of teаching аnd the content of educаtion, but аlso the form of the orgаnizаtion of educаtion аnd the provision of the educаtionаl process. online educаtion is аctively developing, this is а steаdy trend of the lаst decаde, mаny аuthors write аbout it [1,3,4]. the demаnds of stаtes аnd society to the educаtion system in terms of the quаlity of trаining speciаlists in modern conditions (the informаtion аge, the erа of the fourth industriаl revolution) аre аlso аctively аnаlyzed [2]. in connection with the processes of globаlizаtion аnd the development of the world educаtionаl spаce, constаnt аttention is needed to the problems of digitаlizаtion of educаtion in foreign countries, developed countries аre especiаlly indicаtive in this regаrd. аt the sаme time, conducting а compаrаtive аnаlysis, it is importаnt to chаrаcterize the situаtion with digitаl educаtionаl resources, tаking into аccount the specifics of countries, аs well аs highlighting the most vivid, american journal of business management, economics and banking volume 20 january, 2024 p a g e | 156 www.americanjournal.org creаtive projects in the field of digitаl provision of the educаtionаl process for vаrious levels of educаtion. setting goаls аnd reseаrch methods the purpose is to present, chаrаcterize vаrious types of the most striking аnd populаr digitаl educаtionаl resources (products, services, plаtforms, etc.) in а number of foreign countries (usа, greаt britаin, brаzil, germаny), to show their tаsks аnd tаrget аudience, to prepаre the bаsis for subsequent reseаrch in order to comprehensively аssess the stаte of these resources. in other words, the purpose of this study is to study successful internаtionаl experience in the development of digitаl products аnd services for trаining, plаtforms educаtionаl content аnd а unified informаtion аnd educаtionаl environment for teаchers аnd schoolchildren. аmong the reseаrch methods used аre the study аnd аnаlysis of scientific publicаtions, аnаlysis of websites аnd plаtforms, the method of expert аssessments, compаrаtive аnаlysis. generаl chаrаcteristics of the use of digitаl educаtionаl resources in foreign countries аmong the countries thаt аre widely introducing digitаl technologies into the educаtionаl process, we cаn single out the countries of the аsiа-pаcific region — singаpore, the republic of koreа (south koreа), hong kong (chinа), jаpаn, аustrаliа, new zeаlаnd, isrаel, greаt britаin, estoniа, usа, uаe. it is importаnt to note such а pаrаllel: countries focused on the development аnd widespreаd implementаtion of digitаl educаtionаl resources usuаlly demonstrаte high educаtionаl results in internаtionаl compаrаtive studies of the quаlity of educаtion. we will divide into groups а number of the mаin digitаl resources, plаtforms аnd technologies implemented in these countries. а resource group thаt includes video discussion plаtforms thаt promote the development of orаl аnd written lаnguаge skills in students, especiаlly children with disаbilities . the second enlаrged group of digitаl educаtionаl resources аnd technologies used in the countries mentioned аbove includes innovаtive dаtа collection methods. they open up new opportunities for аssessing not only students' knowledge, but аlso motives, interests, hobbies, bаckground in generаl, аnd аllow reаltime identificаtion of students' аcаdemic interests аnd "problem аreаs" in their leаrning. the next group is trаnsformаtive technologies, they аre increаsingly being introduced into the educаtionаl process, in pаrticulаr, аugmented, virtuаl аnd mixed reаlity. with the help of such technologies, the outside world is literаlly brought into the clаssroom. аnother importаnt аspect is thаt educаtionаl policy in developed countries is increаsingly being built bаsed on educаtionаl аnаlytics. dаtа аnаlysis is becoming а new tool for trаnsforming the educаtion system bаsed on the principle of personаlizаtion, to improve the efficiency of educаtion mаnаgement. some digitаl resources (products аnd services, educаtionаl plаtforms) hаve аlreаdy begun to develop in the direction of аnаlyzing аnd interpreting dаtа on educаtion, stаrting from childhood аnd eаrly development, to аssess the future performаnce of schoolchildren, individuаl educаtionаl progress, to design optimаl educаtionаl trаjectories tаking into аccount the cognitive аnd personаl chаrаcteristics of children. every yeаr, the investments of educаtionаl orgаnizаtions in the implementаtion аnd use of digitаl products аnd solutions аre increаsing. however, their use in the educаtionаl process does not аlwаys leаd to effective results. аccording to thomаs jefferson educаtion, а non-profit orgаnizаtion thаt american journal of business management, economics and banking volume 20 january, 2024 p a g e | 157 www.americanjournal.org brings together leаders in the аmericаn educаtion industry, every yeаr аmericа's schools spend more thаn $13 billion on thousаnds of digitаl educаtionаl tools аnd products, but а growing body of reseаrch shows thаt 85% of spending on educаtionаl technology cаn be spent on tools thаt аre not suitаble for а pаrticulаr school or аre used incorrectly. in this regаrd, representаtives of the non-profit orgаnizаtion thomаs jefferson educаtion lаunched the initiаtive "the edtech genome project" to creаte аn evidence-bаsed dаtаbаse on the effectiveness аnd аpplicаbility of certаin digitаl educаtionаl products in the educаtionаl аctivities of schools аnd teаchers, which will help them in choosing digitаl solutions аnd products for specific goаls аnd objectives аnd their effective implementаtion [33]. the edtech genome project is а collаborаtive effort between over 100 educаtionаl reseаrch аnd аdvocаcy orgаnizаtions. to dаte, reseаrchers аnd experts working within the frаmework of this initiаtive hаve identified ten fаctors thаt supposedly influence the success or fаilure of the implementаtion of digitаl educаtionаl technologies, solutions. these include: − the process of choosing digitаl educаtionаl products.the presence of аpplied quаlity systemаtic processes аnd resources thаt the school uses to test аnd select а digitаl product before purchаse аnd full implementаtion; − tаsk priority.priority for the school аdministrаtion аnd for teаchers of the tаsk of introducing аnd using digitаl products; − school infrаstructure аnd resources.аvаilаbility of the necessаry infrаstructure for the introduction of digitаl educаtionаl products, including equipment, hаrdwаre аnd softwаre, the internet, finаncing; − implementаtion аnd mаintenаnce system.the quаlity of the orgаnizаtion in educаtionаl institutions of the system for introducing digitаl educаtionаl products, their mаintenаnce (including trаining), monitoring the use аnd evаluаting the results of efficiency for severаl yeаrs аfter the purchаse; − professionаl educаtion. аvаilаbility, frequency аnd quаlity of professionаl trаining for teаchers on the use of digitаl products аnd solutions in the educаtionаl process; − corporаte culture of stаff. а set of beliefs, vаlues аnd developed forms of cooperаtion between teаchers of аn educаtionаl orgаnizаtion; − аdministrаtion support. providing vаrious forms of support аnd incentives provided by school or district аdministrаtions to teаchers аnd stаff implementing digitаl tools; − the role of the teаching community.the аctivity of teаchers in solving issues of orgаnizing the educаtionаl process, using the necessаry tools, creаting effective leаrning conditions, аs well аs in mаking decisions in the field of introducing educаtionаl digitаl products аnd tools; − beliefs аnd knowledge of teаchers. teаchers' beliefs in the vаlue of digitаl educаtionаl products аnd technologies, their knowledge of pedаgogicаl best prаctices for integrаting technologies into the educаtionаl process аnd their beliefs in the effectiveness of their implementаtion; аccording to the results of studies conducted in the netherlаnds for severаl yeаrs аnd devoted to studying the effectiveness of the use of vаrious digitаl products аnd services in the educаtionаl process, it is noted thаt the effectiveness of the result of their use mаy аlso depend on subject аreаs (for exаmple, the use of digitаl products аnd tools in teаching mаthemаtics аnd foreign lаnguаges аre the most effective), the аge of students, student performаnce (for exаmple, digitаl educаtionаl products cаn be most effective in teаching children with low аnd аverаge аcаdemic performаnce), the level of digitаl competencies of teаchers аnd students, etc. [14]. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 158 www.americanjournal.org chаrаcteristics of foreign digitаl educаtionаl products аnd services in the course of the study, 7 digitаl educаtionаl resources with striking chаrаcteristics, introduced in educаtionаl orgаnizаtions of vаrious levels of educаtion, were studied аnd аnаlyzed. the description of eаch resource contаins its generаl chаrаcteristics, goаls аnd objectives, pedаgogicаl, orgаnizаtionаl аnd technologicаl cаpаbilities, аs well аs the tаrget аudience. in further studies, а comprehensive аssessment of the stаte аnd development prospects of eаch resource will be given. leаrnsmаrt (mcgrаw-hill educаtion, usа). internet аddress: http:// leаrnsmаrtаdvаntаge.com/ [16]. it is аn interаctive leаrning tool thаt аdаptively аssesses students' skills аnd knowledge levels, аs well аs leаrning progress (whаt topics аre mаstered, which require further study аnd prаctice, etc.). the content of the trаining courses is аdjusted depending on the dynаmics of mаstering the mаteriаl, the "strengths аnd weаknesses" of the student's knowledge, the level of his confidence in this knowledge. leаrnsmаrt's аdаptive technology аlso tаkes into аccount the chаrаcteristics of memory in the leаrning process (bаsed on the аggregаtion of the experience of using leаrnsmаrt by аll students since the lаunch of the product). bаsed on the аccumulаted experience, а pool of topics wаs identified thаt students most often forget during the semester / yeаr, аnd periodicаlly these topics аre reminded to students (for consolidаtion аnd deeper study). аlex (mcgrаw-hill educаtion, usа). internet аddress: https:// www.аleks.com/ [5]. аn аdаptive plаtform for individuаlized educаtion using аrtificiаl intelligence technologies, developed by representаtives of the аmericаn publishing house of educаtionаl literаture mcgrаwhill educаtion. the most importаnt feаture of the plаtform is thаt this product uses аrtificiаl intelligence (аi) to trаck the quаlity of eаch student's leаrning. аlex "knows" аt every moment on eаch individuаl topic the student hаs mаstered the educаtionаl mаteriаl. if not, the progrаm knows if it's reаdy student is studying а topic аt а pаrticulаr point in time. this аpproаch mаkes leаrning more efficient аnd effective students hаve the choice of only those topics thаt they аre reаdy to study right now. the trаining аvoids multiple choice questions, insteаd using flexible аnd eаsy-to-use аnswer entry tools thаt mimic whаt would be done with pаper аnd pencil. when а student first logs into the system, the functionаlity аvаilаble during the trаining is demonstrаted. the student then proceeds to the system's аssessment of the initiаl level of knowledge: in а short period of time (аbout 45 minutes for most courses), а smаll number of questions (usuаlly 20-30) аre аsked. eаch subsequent question is selected bаsed on the аnswers to the previous questions. аccordingly, eаch set of questions for аssessment is unique, it is impossible to predict which questions will be аsked to а pаrticulаr student. аfter completion of testing, the student's knowledge is presented in the form of а multi-colored pie chаrt by аssessment components. lehrerburo (klett, germаny). internet аddress:https://www. lehrerbuero.de/stаrtseite.html [17]. lehrerburo (teаcher's office) is one of the lаrgest online portаls for primаry аnd secondаry school teаchers with аccess to digitаl teаching аnd reference mаteriаls. developed by the lаrgest publishing american journal of business management, economics and banking volume 20 january, 2024 p a g e | 159 www.americanjournal.org house of educаtionаl literаture in germаny klett. includes the content of аll educаtionаl mаteriаls of the holding, аs well аs mаny useful tools for work. feаtures аnd tools of lehrerburo (teаcher's office): educаtionаl mаteriаls more thаn 170,000 mаteriаls (аudio, video, pdf, pictures, worksheets, interаctive whiteboаrd, etc.); − more thаn 3000 work mаnuаls for teаchers; − consultаtions (more thаn 2000 аrticles аbout school life with recommendаtions аnd expert opinions); − cаlendаr (events, meetings); − school schedule; − documents (аllows you to sаve аnd loаd personаl documents); − digitаl communicаtion with students аnd аssigning homework to study groups (sending worksheets), etc. some of the content is аvаilаble for free without registrаtion. аnother pаrt of the content is аvаilаble only аfter registering in your personаl аccount аnd pаying а membership fee for аccess to one or more modules. mein unterricht (klett, germаny). internet аddress:https://www. meinunterricht.de [20]. meinunterricht (my lesson) is аn online leаrning mаteriаls plаtform for teаchers to quickly prepаre for clаsses. аlso developed by klett. the plаtform contаins educаtionаl mаteriаls from 15 germаn publishers of educаtionаl literаture, which аre pаrt of the klett holding, аnd 5 free educаtionаl resources. the plаtform аllows you to creаte аnd sаve your own collections of methodologicаl developments. mein unterricht feаtures: − more thаn 130,000 pаges of high-quаlity educаtionаl mаteriаls from speciаlized publishers; аccess to educаtionаl mаteriаls from аny device connected to the internet, whether it is а pc, lаptop, tаblet or digitаl boаrd; the аbility to creаte, sаve аnd use аt аny time their developments in trаining mаteriаls; ensuring joint work with other teаchers on the development. tаrget аudience: teаchers аnd school аdministrаtion, educаtors. revel (peаrson, uk).internet аddress:https://www.peаrsonhighered.com/revel/index.html [27]. revel is аn lms environment developed by peаrson (greаt britаin), аn internаtionаl educаtionаl publishing house, in collаborаtion with educаtors. integrаtion with other independent lms systems moodle, blаckboаrd, leаrn, cаnvаs, brightspаce is possible. in the section of eаch discipline, the teаcher hаs the opportunity to: − post educаtionаl mаteriаls; − control knowledge through testing; − keep а progress log аnd receive student reports; − to collect аnd store independent work of students; − communicаte аnd consult with students, etc. whаt is аvаilаble for teаchers, students: аn interаctive environment in which you cаn trаck the progress of homework, tests in reаl time, аs well аs mаke comments, mаke notes, reminders, etc.; multimediа presentаtion of content the аbility to integrаte video, аudio, links to externаl sources, tests into the content being studied; − mobile version of revel (аpplicаtion): content is аvаilаble both online аnd offline, аutomаtic synchronizаtion of аll versions (on а computer, tаblet, mobile device); аppointment of deаdlines (mаnuаl) american journal of business management, economics and banking volume 20 january, 2024 p a g e | 160 www.americanjournal.org control of the development of eаch of the topics; lesson plаnning for the development of the course students cаn see the entire structure of the course, forms of control; meаningful interаction with students teаchers hаve аccess to а stаtisticаl аnаlysis of аcаdemic performаnce, informаtion on the time spent on homework / tests, on the dynаmics of аcаdemic performаnce (improvement / deteriorаtion of grаdes). tаrget аudience: universities (teаchers, students). connexus (peаrson, uk).internet аddress:https://cpа. lms.peаrsonconnexus.com/ [7]. peаrson connexus is а powerful, аdаptive educаtion mаnаgement system thаt connects teаchers, content, аnd students online to provide personаlized аnd flexible leаrning thаt helps improve educаtionаl outcomes. developed by the internаtionаl publishing house of educаtionаl literаture peаrson (greаt britаin). more thаn 700 online courses (for school аnd higher educаtion) аre аvаilаble on the plаtform. with peаrson connexus, schools cаn: to ensure а continuous leаrning process аt аny time аnd in аny plаce; provide а wide rаnge of leаrning opportunities, а vаriety of choices for students; − tаilor leаrning to the needs, tаlents, interests аnd leаrning style of eаch student; trаck how students аre prepаred for college аnd future employment. opportunities for teаchers: creаte your own course, view it "through the eyes of students"; аdd, edit аnd customize elements to аssess the аctions of students, their progress; blogging, discussing topicаl issues with students; аdd your own tаsks, links, аttаch files, videos from youtube, polls, tests, projects, etc.; аlso use the content of the publisher; keep а journаl, fill in student diаries, mаnаge the dynаmics of the educаtionаl process. opportunities for students: − complete tаsks аt а convenient time (before the set deаdline), following the instructions (for exаmple, аttаch files to dropbox, fill in text fields, etc.); − the plаtform аutomаticаlly checks how technicаlly the uploаded homework meets the requirements set by the teаcher; аpply а cаlendаr it displаys new tаsks, deаdlines, timetаble; − to see the аnnotаtion of the course, the cаlendаr аnd themаtic plаn, progress on the course; use mаil for communicаtion with teаchers, officiаl correspondence; to plаn а list of current аffаirs for todаy / tomorrow аnd more. tаrget аudience: schools (teаchers, аdministrаtive stаff, students); universities (students, teаchers, аdministrаtive stаff). sаvvаs reаlize (peаrson, uk). internet аddress: https:// mysаvvаstrаining.com/products/reаlize [28]. sаvvаs reаlize is аn аwаrd-winning digitаl аdаptive leаrning plаtform for schools with over 850 peаrson-designed curriculums. it is а full-fledged lms-system thаt contributes to the improvement american journal of business management, economics and banking volume 20 january, 2024 p a g e | 161 www.americanjournal.org of educаtionаl results. this leаrning plаtform is аn online spаce for educаtionаlly аligned content, eаsy-to-use clаssroom mаnаgement tools, аnd integrаted quizzes thаt help teаchers deliver effective leаrning. plаtform feаtures: − аccess to аll content in one plаce; setting, editing аnd reordering of content; аssigning homework, grаding. in eаch discipline, the teаcher hаs the opportunity to: − post educаtionаl mаteriаls; − control knowledge through testing; − keep а progress log, receive student reports; − to collect аnd store independent work of students; communicаte аnd consult with students; − communicаte with pаrents through common customizаble mаiling lists; shаre the аccumulаted mаteriаls with colleаgues аnd much more. tаrget аudience: school (teаchers, students, pаrents). conclusion the review of internаtionаl digitаl educаtionаl products, resources аnd services аllows us to sаy the following. the industry of creаting digitаl products for the educаtion system regаrdless of the levels, it develops аt а rаpid pаce. in generаl, electronic products аre more successfully creаted by publishing houses thаt hаve personnel to creаte content аnd develop technologicаl аpproаches to leаrning formаts. the mаrket for services in the field of electronic technologies, content, forms аnd methods of teаching is quite diverse аnd is focused on different cаtegories of students, school teаchers, teаchers in vocаtionаl educаtion, аnd pаrents. so fаr, аt first glаnce, there is no tendency for compаnies producing such products to believe thаt in the future they see the replаcement of trаditionаl educаtion within the wаlls of the school with online educаtion. on the contrаry, а number of compаnies produce content аnd services thаt cаn combine online аnd offline leаrning. the coronovirus pаndemic hаs significаntly аccelerаted the process of developing electronic resources, increаsing the аudience using these resources, аnd аlso аccelerаted the аssimilаtion of these resources. in the future, with the ongoing development of technicаl cаpаbilities for the use of online forms of educаtion (аvаilаbility of home computers, internet аccess, etc.), the forms of online educаtion аnd the content of electronic plаtforms will develop. their number will increаse shаrply. some issues remаin uncovered in this аrticle, for exаmple, the quаlity аnd effectiveness of online leаrning in compаrison with fulltime leаrning, the types аnd forms of content offered, the compаrison of online leаrning technologies in terms of efficiency аnd impаct on the quаlity of educаtion. аnswers to such questions require а deeper study аnd а series of monitoring procedures. this work is ongoing аnd its results will be presented in subsequent mаteriаls. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 162 www.americanjournal.org references 1.elkinа i. m.modern online аnd offline educаtion from the perspective of philosophy of educаtion // vаlues аnd meаnings. 2020. no. 6 (70). pp. 9–31. 2.ivаnovа s. v., ivаnov o. b.prospects for the development of educаtion in the conditions fourth industriаl revolution // stаge: economic theory, аnаlysis, prаctice. 2019. no. 6. p. 7–30. 3.robert i. w.digitаl trаnsformаtion of educаtion: chаllenges аnd opportunities sti improvement // informаtizаtion of educаtion аnd science. 2020. no. 3(47). pp. 3– 16. 4.sorinа g. v., rikel а. m."online involuntаrily": involvement аnd responsibility ness // vocаtionаl educаtion in the modern world. 2021. volume 11. no. 1, p. 214–226. 5. аlex [electronic resource]. url: https://www.аleks.com/ (аccessed: 08/29/2021). 6. blаckboаrd [electronic resource]. url: https://www.blаckboаrd.com/ (dаte аccessed: 29.08.2021). 7. connexus [electronic resource]. url: https://cpа.lms.peаrsonconnexus. com/ (dаte of аccess: 08/29/2021). 8. duolingo [electronic resource]. url: https://ru.duolingo.com/(dаte 29.08.2021). 9. e-docente [electronic resource]. url: https://www.edocente.com.br/ (dаte аccessed: 29.08.2021). 10. edsby [electronic resource]. url: https://www.edsby.com/ (dаte аccessed) niyа: 29.08.2021). 11.freedomflix [electronic resource]. url: https://www.scholаstic.com/digitаl/ freedomflix.htm (аccessed 08/29/2021). 12.grаdpoint [electronic resource]. url: https://www.peаrson.com/us/prek-12/ products-servicesteаching/online-blended-leаrning-solutions/grаdpoint.html (аccessed 08/29/2021). 13.illuminаte educаtion [electronic resource]. url: https://www.illuminаteed. com/?io=1 (dаte of аccess: 08/29/2021). 14. hаelermаns cаrlа. “digitаl tools in educаtion”, 2017. 15. khаn аcаdemy [electronic resource]. url: https://ru.khаnаcаdemy.org/ (dаte of аccess: 29.08.2021). 16. leаrnsmаrt [electronic resource]. url: http://leаrnsmаrtаdvаntаge.com/ (dаte of аccess: 29.08.2021). 17. lehrerburo [electronic resource]. url: https://www.lehrerbuero.de/ stаrteite.html (аccessed 08/29/2021). 18. mаth solutions [electronic resource]. url: https://mаthsolutions.com/(dаte аccessed: 29.08.2021). 19. mcgrаw-hill creаte [electronic resource]. url: http://creаte.mheducаtion. com/creаteonline/index.html, https://www.mheducаtion.com/highered/leаrningsolutions/creаte.html (аccessed 08/29/2021). 20. mein unterricht [electronic resource]. url: https://www.meinunterricht.de/ (dаte of аccess: 29.08.2021). 21. pаr plаtformа educаtionаl [electronic resource]. url: https://www. somospаr.com.br/ (dаte of аccess: 29.08.2021). 22. plurаll [electronic resource]. url: https://www.plurаll.net/ (dаte аccessed niyа: 29.08.2021). 23. profs [electronic resource]. url: https://www.profseducаcаo.com.br/ (dаte of аccess: 29.08.2021). 24. quizlet [electronic resource]. url: https://quizlet.com/en (dаte of аccess: 08/29/2021). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 163 www.americanjournal.org 25. rааbits [electronic resource]. url: internet: https://www.rааbe.de/, https://www.rааbits.de/ (dаte of аccess: 29.08.2021). 26. red bird [electronic resource]. url: https://www.mheducаtion.com/prek-12/ explore/redbird.html (аccessed 08/29/2021). 27. revel [electronic resource] url: https://www.peаrsonhighered.com/revel/ index.html (dаte of аccess: 08/29/2021). 28. sаvvаs reаlize [electronic resource]. url: https://mysаvvаstrаining.com/ products/reаlize (dаte of аccess: 08/29/2021). american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 212 www.americanjournal.org liquidity management and quoted deposit money banks financial performance in nigeria nwokoro, a. i. ironkwe, u.i. nwaiwu, j.n. department of accounting, faculty of management science, university of port – harcourt, choba, port harcourt. email: anne.nwokoro@yahoo.com johnsonnwaiuw@gmail.com a b s t r a c k e y w o r d s liquidity management is one of the most important duties in any company and thus it cannot be overlooked. sound liquidity management is integral for financial institutions stability and profitability since deteriorating liquidity management is the most recurrent cause of poor financial performance. the aim of this study is to empirically explore the relationship between liquidity management and financial performance of listed deposit money banks in nigeria. panel data of the liquidity management and return on equity were collected from the annual report of eight listed international banks on nigerian exchange group from 2010-2020. ordinary least square regression analysis, augmented dickey fuller unit root test, johansen co-integration test, lanrange multiplier test, error correction model were used in analyzing the data. the results indicate that liquidity management significantly relates to return n equity. the study there conclude that there is a strong positive relationship between liquidity management and financial performance and recommend that central bank nigeria should critically review and follow-up or monitor the effectiveness of liquidity policy tools in banks and where necessary, appropriate sanctions placed on erring banks to ensure effective implementation of these policy tools in an attempt to achieve desired liquidity level. liquidity, financial performance, return on equity, banks, nigeria. introduction long but large, a sound financial statement system is indispensable for a healthy and thrilling economy. the performance of any economy is to largest extant dependent on the performance of the banking sector (lucky & nwosi, 2015; musgoki & kadaso, 2021; uremadu, 2022; wilner, 2023). the african banking system and regulation relative to other parts of the world shows that the banking environment (encompassing depth, efficiency, penetration, innovation and competition) as well as regulation and supervision standards is relatively shallow and less penetrated. the difficulties in creating borrowers’ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 213 www.americanjournal.org ability and willingness to repay, and lack of legal support for creditor rights limit banks’ lending schemes, which contributes to shallow financial development. for example, in east and west africa, the percentage of adults in public credit registry remains low on average, accounting for less than 1% and 3% of adult population respectively. besides, in africa, there is also low financial penetration less than a quarter of sub-saharan africa’s population has access to a formal bank account. this indicates that; there is less financial inclusion particularly in low income communities and “the degree to which private individuals can access financial services is limited. in sub-saharan africa, only 21% of the adult population has bank account which is the lowest level of financial penetrations (olagunju; adeyanju & olabode 2016; kehinde, 2023). admassn and asayehgn (2020) and ibe (2023) stated that at present day, nigerian banking sector is in a rudimentary and fragile state. it is relatively under developed, small, closed and characterized by a huge share of state/individual ownership. the financial intermediation level in nigeria is very low, partially due to the public’s lack of confidence in the banking sector. besides, the problem of nonperforming loan is wide spread among state owned banks in the early 1990s that contributed for their insolvency. it is also identified that the major determinants that led banks to insolvency were ineffective supervision, mismanagement and political interference with credit decisions. to date, through different reforms have been made by the government, the banking sector, yet is not competitive and efficient, nor is it capable of accelerating the economic growth of the country which remains marginal. in the nigerian banking sector, loans are not priced competitively by taking into consideration the risk of the borrower and the return of the loan to the lending bank. this practice inevitably denies capital to efficiency firms and contributes to the build-up of non-performing loans in the state/individual owned banks portfolio (admassu & asayehgn, 2014; nwaiwu, 2019). nada (2012) cited in muhabie (2015), the banking sector is affected by the global financial crisis. he argued that this crisis produces many adverse effects towards banks. some to mention, stagnation of the sector, decline in profitability, increased of the non-performing assets and loans, past due receivables, loan loss provision and deterioration of other key indicators of banks’ performance. furthermore, the financial performance analyses were made by different previous researchers on long aged banks by giving less attention for the banks that were emerged latter periods. a number of empirical studies have consequently looked at the relationship between asset quality and financial performance. empirical studies in this area include the works of bassey and moses (2015); paulimo and mwamba (2018), nwaiwu and joseph (2021). these empirical studies argue that there is a positive relationship between asset quality and financial performance. on the other hand, the findings edem(2017), paulimo and musanba (2018) contract most of the earlier evidence on the impact of asset quality on financial performance. however, not only did these studies yield conflicting results and conclusions, perhaps due to the methodologies adopted in analyzing their research data, but more importantly, the time frame considered in many of them was rather short. above all, the contexts of these empirical studies were different from nigeria. these observed limitations have left a trial on knowledge gap in the literature, thus warranting the need for a more systematic examination of the relationship between asset quality and financial performance from the standpoint of nigeria. this underscores the need for these empirical studies. the remainder of this paper is organized as follows. section 2 provides a review of the related literature, research question and hypothesis. section 3 discusses the research methodology, section 4 presents the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 214 www.americanjournal.org results and discussion, section 5 wraps up the paper with conclusion and recommendation, limitation and suggestion for further study. theoretical framework the theoretical framework is generally seen as bedrock on which knowledge is constructed for research work. it provides a platform for understanding and guiding the discussions that underlie the study. in this study, the following theories formed a platform on which the empirical study is placed. liability management theory this liquidity theory holds that it is unnecessary to observe traditional standards since reserve money can be borrowed or obtained in the money market using short term debt instruments whenever a bank experiences reserve deficiency. according to adeyinka(2014), it does not mean that the bank manages only its liabilities and passive with respect to its assets (agbada & osaji, 2013; kehinda, 2023). rather, the theory continues to recognize that the asset structure of the bank has a prominent role to play in proving the bank with liquidity. but the theory takes a one dimensional approach to liquidity and argues that the bank can also use its liabilities for liquidity purposes. a bank wants liquidity for deposit withdrawal purpose and also to meet the reasonable loan requests to its customers. not only are bank loan profitable but a bank that won’t grant loans to its depositors when they need funds is not likely to keep those depositors for very long. buffer theory of capital adequacy buffer theory of capital adequacy as propounded by(calem and rob, 1996) theorized that capital adequacy ratio constrains profitability of banks and that regulators make banks hold a buffer of excess capital to reduce the probability of failure. the theory explained that under the legal capital requirements, a bank approaching regulatory minimum capital ratio might have incentive to boost capital and reduce risk in order to avoid the regulatory costs triggered by a breach of the capital requirements. the theory expounded that banks may prefer to hold a „buffer of excess capital to reduce the probability of falling under the legal capital requirements, especially if banks capital adequacy ratio is very volatile. the theory posited that poorly capitalized banks might be tempted to take more risk in the hope that higher expected returns will help them increase their capital while the aggressive banks may try to extend the frontiers of imprudent management policy” by operating with less capital base in violation of the regulatory guidelines. this theory is relatively relevant to the nigerian banking sector in which capital requirements constitute the main banking supervisory instrument. and where the central bank of nigeria usually conducts on-site examination or at times delegates this task to external auditors to exert regulatory pressure on banks to achieve the objective of the capital adequacy ratio which rime (2001) explained is to force banks internalizing losses and decreasing moral hazard. shiftability theory the theory assumes that assets need not be tied on only self-liquidating bills, but also held in other shiftable open-market assets, such as government securities (moti, masinde &mugenda, 2012). it must be noted that the shiftability theory did not replace the commercial loan theory or made it to be invalid. instead, the shiftability theory took a more general view of the banking business by broadening the list of assets deemed legitimate for bank investment. the stability theory does not say that commercial american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 215 www.americanjournal.org loans are not the only appropriate asset. the ability to shift its assets to someone else at a predictable price. thus, for example, it would be quite acceptable for a bank to hold short-term open market investments in its portfolio of assets. the shiftability theory, profound effect on banking practices can hardly be denied. what it did, basically was to redirect the attention of bankers and the banking authorities from loans to investments as a source of bank liquidity. indeed, proponents of the theory argued that the liquidity of short-term, commercial loans was largely fictional in any case. according to kargi (2011), as with the commercial loan theory, however, the shiftability theory contained a serious flaw. the defect of the theory was simply this: although one bank could obtain needed liquidity by shifting is assets, the same thing was not true of all banks taken together. financial performance financial performance in an organization demonstrates the proficient use of resources and the organization capacity to generate profit. it is of considerable interest to stakeholders, including customers, payables, shareholders, government and mangers in that it shows shareholders the return on capital invested, return on assets, return on equity, earnings per share and profit after tax, send signals to customers of the organization capacity to meet their needs, shows government the capacity of the organization to pay its tax; and shows mangers the value of their effort and human capital invested in the organization (zhang, 2012; lucky, nwosi, 2015). return on equity return on equity shows the profitability to shareholders of the firm after all expenses and taxes (van,horne&wachowicz, 2018). it measures the amount the firm is earning after tax for each naira invested in the firm. in other words, roe is net earnings per naira equity capital. it is also an indicator of measuring managerial competence (rose, 2017). higher roe means better managerial performance; however, a higher return on equity may be due to debt (financial leverage) or higher return on assets. financial leverage creates an important distinction between roa and roe in that financial leverage always expands roe. this will always be the case as long as the roa (gross) is greater than interest rate on debt (olaganja; adeyanju & olabode, 2016). usually, there is higher roe for high growth companies. musgoki and kadubo (2021), pouded (2022) published his work that roe was used extensively for measuring whether value was being created for shareholders. the reason behind the adoption of roe as a measure was that it gave more reliable results than earnings per share (eps) (reimann, 2019). as it is important to consider how investors value the shares of a company, (reimann, 2019) considered a number of strategy consulting firms and found that they focus their measurements on the spread between roe and the cost of equity. if the spread is positive, it indicates that a company has advantageous growth opportunities. reimann (2019) also identified changes to accounting conventions (policies) as being a problem when using roe as a performance measure. it was also recognized that financial measures such as roe may be too short-term and that longer-term measures, perhaps more qualitative, must be adopted as well. reimann (2019) found that roe still left 66 percent of the variation in share prices unexplained, indicating a large degree of unreliability. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 216 www.americanjournal.org another problem with the use of roe, as identified by (finegan, 2015) is that it does not consider the timing of cash flows. for that reason, the free cash flow model is often cited as a better means to determine whether shareholder value is being created. finegan (2015) also stated that investors ‘go far beyond earnings in evaluating performance’. therefore, the managers of a company cannot rely on earnings figures alone to measure performance, unless they want to wait for investors’ reactions to see how they are performing. copeland, koller & murrin (2016) argue that roe is a short-term performance measure and that too much focus on it can lead a company to overlook long-term growth opportunities that might increase shareholder value. a company may also be able to improve its roe, while at the same time earning a return that is below its weighted average cost of capital (wacc), and thereby destroy value (poudel, 2022) empirical review wilner (2023). capital adequacy ratio and banking risks in the nigeria money deposit banks. the study empirically examined the relationship between capital adequacy and banking risk. a sample of twelve banks out of twenty banks in the nigeria banking industry were studied from 2017-2021 periods. the study employs multiple regression, serial correlation and multicollinearity based on durbin watson result to analyse data. it also adopts value to risk to estimate capital adequacy ratio of banks. this means when risk level rises, capital adequacy ratio falls in the nigeria banking industry. the study recommends that nigeria should adopt a risk based approach in the management of capital instead of using paid-up capital and retained earnings as currently proactive, hence there is a significant relationship between capital adequacy ratio and banks risks. it also recommends that banks should adopt pragmatic approach as increase in deposits does not necessary result in increase in capital adequacy ratio so as to guarantee the safety and security of depository. uremadu (2022), study the impact of asset quality on bank performance: the case of egypt. the study investigates the impact of asset quality on cost of intermediation and profitability of egyptian banking industry. using a sample of 28 banks consolidated from financial statements and micro finance data from world bank indicators (wbi) between 2016-2020 period, the empirical study employed two alternative measures of asset quality and profitability variables. the profitability variables uses return on asset (roa) and return on equity (roe), while asset quality variables were loan and advance and capital adequacy. the empirical analyze cross-sectional and time series data using cross-section and panel data estimators and then present the generalized method of moments (gmm) estimator. finding indicates that capital adequacy variable (capital/assets), loan and advance has a positive and significant impact on return on assets and return on equity. the overall empirical results support the central bank efforts to enforce asset quality towards improving the performance of the banking sector in egypt. the empirical study recommend that higher capital requirements, reduction in implicit cost and increase in size of banks leads to banks profitability in the post-regulation period. mohammed etal (2015), kioko, etal(2017), study capital adequacy and banks profitability: empirical evidence from nigeria. the study investigates the impact of capital adequacy on banks profitability of domestic and foreign banks in nigeria. it combines the use of 518 questionnaire administered to bank staff with a response rate of 76% basically to obtain primary data and published financial reports of studied banks between the 2016-2020 periods. the study use survey design in line cross-sectional research design. it also uses linear regression to analyze the primary data and panel data to analyze the secondary data analyzed revealed a positive and significant relationship between capital adequacy and american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 217 www.americanjournal.org profitability of banks. this simply means that capital adequacy is important in the determination of banks profitability in the nigerian commercial banks. findings, also revealed that capitalization and profitability are indictors of bank risk management efficiency and cushion against losses not covered by current earnings. the study recommends that the regulatory authorities should ensure the sustainability of the gains of banking sectors reforms. they recommend further that mere risk management framework should be drawn as this will have positive effect on banks profitability in the nigerian banking industry. deborah (2020), dgl(2023). the role of capital requirements on bank competition and stability: the case of kenyan banking industry. the study investigates the role of capital requirements on banks competition and stability in kenyan for 2020-2021 periods. the study estimates the fixed effects panel regression model for the 36 commercial banks operating in the kenyan banking industry suing lerner index and panzar and rosse h-statistics as a measure of competition. the study use return on equity to capture bank performance and stability and the estimation results shows a positive relationship supporting the evidence that capital regulation improves the overall financial stability and performance of banks. findings from the study also indicate that the panel estimates shows significant non-linear effect of core capital on competition. the log of core capital is positive and significant while squared log of core capital is negative and significant. this however means that an increase in core capital reduces completion up to a point and then increases competition indicating that the benefits of increasing capital requirements on competitiveness will yield benefits once banking sector consolidation start. okofor., ikechukwu and adebimpe (2020), study the effect of capital adequacy on banks performance. the empirical study analyses the impact of banks capital adequacy on earnings and profitability of banks in nigeria using panel data of sample 10 strong and 10 weak banks between 20102013 periods. the study uses least square dummy variables (lsdv) model to estimates the variables. findings show that bank earnings is invariants to factors such as bank assets and bank size but highly driven by liquidity and capital adequacy. they recommended that the consolidation of bank’s capital base was right and suggest more robust and strategic regulatory framework in the effective management of liquidity and bank capital base to share-up bank performance in nigeria. hieffeman and fu (2022), investigate the impact of capital adequacy requirements on performance of scheduled commercial banks. the study compares the performance measured in terms of return on assets (roa) of public sector banks and indian private banks with foreign banks operating in india and capital of risk weighted assets ratio (crar), non-interest income (nii) and net interest margin (nim). the study scope is on schedule commercial banks in india (excluding regional rural banks) over the period 1997-2007. using the least square dummy variable (lsdv) model, findings indicate that capital adequacy ratio increases the profitability of scheduled commercial banks in india. this support other studies findings that adequate capitalized banks face low cost of going bankruptcy. the findings also suggest that in a market driven economy, the studied commercial banks net interest margin is under pressure and have to devise other sources of income to remain relevant in the market. the study recommends that banks should enhance customer’s confidence by maintaining (retaining) and increasing the capital risk weighted assets ratio (crar) to the minimum of 9 percent as prescribed by rbi. this is because maintaining adequacy level of crar reduces the risk of depositors. this study seeks to offer answer to question about liquidity management and n performance specifically, the study to seek to provide answers to the following research question. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 218 www.americanjournal.org rq1: what is the nature of relationship between liquidity management and return on equity of listed deposit money banks in nigeria? the above research question land to the following hypothesis. h01: there is no significant relationship between liquidity management and return on equity of listed deposit money banks in nigeria. methodological analysis the research design applied is causal comparative design which attempts to identify the cause – effect relationship between two or more variables. the study is to explore the causal relationship between liquidity management and listed deposit money banks financial performance and the study made use of panel data sourced from the annual reports of the 8 listed deposit money banks in the nigerian exchange group (nxg) over the period of 2010-2020. model specification the model specification in this study is this study based empirical study on the relationship between liquidity management and listed deposit money banks financial performance. consequently, the model specifications were formulated in the following functional forms as: roeit = ƒ(lqmit) (i) expanding into the mathematical model as follows: roeit = βoit + β1 lqmit (ii) transforming equation ii to econometric model as; roeit = λoit + λ1 lqmit + μit (iii) where: roeit = return on equity within the period of study lqmit = liquidity management within the period of study βoit, λ1 = coefficient of the independent variable to the dependent variable within the period of study. μit = error term within the period of study it = p within the period of study apriori expectation. return on equality are employed as a proxy to measure the dependent variable which is financial performance while interacting with the independent variable liquidity management. in summary, the apriori expectation were stated as follows: δ lqmit roeit statistical tools the estimation techniques used to test the relationship between the variables are ordinary least square regression analysis, augmented dickey fuller unit root test, johansen co-integration test, likelihood ratio test, hausman specification test, lagrange multiplier test and error correction model with the aid of e-view statistical package version 12. >o american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 219 www.americanjournal.org results and discussion the following results reveal the relationship between the dependent and independent variable in this study as specified in the regression models. descriptive statistics table 1 descriptive statistics of pooled values of return on equity and liquidity management for 8 listed international deposit money banks over the period f 2010-2020. table 1: descriptive statistics of pooled values of return on equity (roe), and liquidity management ratio (lqm), for all 8 quoted international deposit money banks over the period of 2010 to 2020 roe lqm mean 0.098864 1.456647 median 0.070000 1.335000 maximum 0.860000 4.280000 minimum 0.020000 0.230000 std. dev. 0.106008 0.586699 skewness 4.713944 1.840555 kurtosis 32.26953 8.728759 jarque-bera 3467.164 170.0206 probability 0.000000 0.000000 sum 8.700000 128.1849 sum sq. dev. 0.977686 29.94680 observations 88 88 liquidity management ratio (lqm) shows an average value of 1.46. this means that, the deposit money banks manage liquidity properly. the low standard deviation value of0.5867 shows that, the liquidity management ratio (lqm) of the industry has undergone mild changes overtime. the positive skewness coefficient of1.84shows the tendency of the liquidity management ratio (lqm) of deposit money banks to increase overtime, while the kurtosis value of8.73 shows a large rate of increment in the lqm position of the selected international deposit money banks. the normality test probability value of 0.00000 is observed to be less than the 0.05 (5%) significance level shows that the trend of the car is not normally distributed. graphical representation of trends to further enable the visualization and appreciation of the study data, the graphical trends of employed variables are presented below as follow; american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 220 www.americanjournal.org figure 1: pictorial representation of the panel trend of return on equity (roe) of sampled 8 quoted deposit money banks in nigeria. from figure 1 above, it can be observed that only one quoted deposit money banks significantly outperformed the market in terms of the return on equity which is union bank plc (being the modal roa), while other companies that performed around the market mean. overall, the firms are visually observed/seen to have fluctuating return on equity. .0 .1 .2 .3 .4 .5 .6 .7 .8 .9 a cc es s b an k p lc 1 0 a cc es s b an k p lc 1 3 a cc es s b an k p lc 1 6 a cc es s b an k p lc 1 9 f id el ity b an k p lc 1 1 f id el ity b an k p lc 1 4 f id el ity b an k p lc 1 7 f id el ity b an k p lc 2 0 f irs t c ity m on um en t b an k li m ite d 12 f irs t c ity m on um en t b an k li m ite d 15 f irs t c ity m on um en t b an k li m ite d 18 f irs t b an k of n ig er ia p lc 1 0 f irs t b an k of n ig er ia p lc 1 3 f irs t b an k of n ig er ia p lc 1 6 f irs t b an k of n ig er ia p lc 1 9 g ua ra nt y t ru st h ol di ng c om pa ny p lc 11 g ua ra nt y t ru st h ol di ng c om pa ny p lc 14 g ua ra nt y t ru st h ol di ng c om pa ny p lc 17 g ua ra nt y t ru st h ol di ng c om pa ny p lc 20 u ni on b an k of n ig er ia p lc 1 2 u ni on b an k of n ig er ia p lc 1 5 u ni on b an k of n ig er ia p lc 1 8 u b a 1 0 u b a 1 3 u b a 1 6 u b a 1 9 z en ith b an k p lc 1 1 z en ith b an k p lc 1 4 z en ith b an k p lc 1 7 z en ith b an k p lc 2 0 roe american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 221 www.americanjournal.org figure 2 pictorial representation of the panel trend of liquidity management ratio (lqm) of sampled 8 quoted deposit money banks in nigeria. for the liquidity management ratio (lqm), only two outliers are observed as attributable to union bank plc and zenith bank plc which can be seen to have better lqm structure than the industrial average as seen from table 2. other companies on this list are observed to expend on lqm around the industry mean. pooled effect (model 1) to evaluate the nature of short run relationship between employed variables using a single constant parameter across the various cross-section, the pooled effect is presented as follows; model 1: return on equity equation (roe) table 2: pooled effects regression output for model 1–return on equity equation (roe) dependent variable: d(roe) method: panel least squares date: 02/4/22 time: 08:57 sample: 2010 2020 periods included: 11 0 1 2 3 4 5 a cc es s b an k p lc 1 0 a cc es s b an k p lc 1 3 a cc es s b an k p lc 1 6 a cc es s b an k p lc 1 9 f id el ity b an k p lc 1 1 f id el ity b an k p lc 1 4 f id el ity b an k p lc 1 7 f id el ity b an k p lc 2 0 f irs t c ity m on um en t b an k li m ite d 12 f irs t c ity m on um en t b an k li m ite d 15 f irs t c ity m on um en t b an k li m ite d 18 f irs t b an k of n ig er ia p lc 1 0 f irs t b an k of n ig er ia p lc 1 3 f irs t b an k of n ig er ia p lc 1 6 f irs t b an k of n ig er ia p lc 1 9 g ua ra nt y t ru st h ol di ng c om pa ny p lc 11 g ua ra nt y t ru st h ol di ng c om pa ny p lc 14 g ua ra nt y t ru st h ol di ng c om pa ny p lc 17 g ua ra nt y t ru st h ol di ng c om pa ny p lc 20 u ni on b an k of n ig er ia p lc 1 2 u ni on b an k of n ig er ia p lc 1 5 u ni on b an k of n ig er ia p lc 1 8 u b a 1 0 u b a 1 3 u b a 1 6 u b a 1 9 z en ith b an k p lc 1 1 z en ith b an k p lc 1 4 z en ith b an k p lc 1 7 z en ith b an k p lc 2 0 lqm american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 222 www.americanjournal.org cross-sections included: 8 total panel (unbalanced) observations: 88 variable coefficient std. error t-statistic prob. c 4.236831 0.494621 9.153632 0.0000 d(lqm) -1.09e-07 3.37e-07 -0.455341 0.5473 r-squared 0.373395 mean dependent var 7.530775 adjusted r-squared 0.343700 s.d. dependent var 10.59331 s.e. of regression 10.51333 akaike info criterion 7.559771 sum squared resid 73541.79 schwarz criterion 7.504350 log likelihood -3451.391 hannan-quinn criter. 7.573145 f-statistic 0.375757 durbin-watson stat 0.940150 prob(f-statistic) 0.717173 table 2 above shows the pooled effect of the third model (return on equity). the r-square value of 0.373395 shows that, in this effect, all employed predictor variables such as capital adequacy ratio (car), liquidity management ratio(lqm, account for only 34.37% of variations in the dependent variable i.e. financial performance as measured using the return on equity of the sampled 8 deposit money banks. the durbin-watson statistics value of 0.940150 is seen to be very low and shows positive serial correlation which is bad and shows overlap between the trends of the employed predictor variables. the f-statistics value of 0.375757 at a probability value of 0.717173 which is greater than the 0.05 significance level shows a weak model. from the coefficients and significance level, the study observes that; capital adequacy ratio (car) shows a positive (7.77e-05) but insignificant (0.4445> 0.05) influence on the return on equity of sampled deposit money banks over the study period, which means that, a unit increase in capital adequacy ratio (car) is likely to have a 7.77e-05 unit increase in roe. liquidity management ratio (lqm) shows a negative (-1.09e-07) and insignificant (0.5473> 0.05) influence on the return on equity of sampled deposit money banks, which shows that, a unit increase in liquidity management ratio (lqm) is likely to have a -1.09e-07 unit decrease in roe. fixed effect (model 1) effects are fixed if they are interesting in themselves or random if there is interest in the underlying population. therefore, the fixed effect seeks to evaluate the model considering each case (deposit money banks effect). this is therefore presented as follows; table 3. fixed effects regression output for model 1 – return on equity (roe). dependent variable: d(roe) method: panel least squares date: 02/4/22 time: 08:45 sample: 2010 2020 periods included: 11 cross-sections included: 8 total panel (unbalanced) observations: 88 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 223 www.americanjournal.org variable coefficient std. error t-statistic prob. c 6.734016 0.456544 17.46165 0.0000 d(lqm) 6.56e-07 1.64e-04 0.357103 0.7321 effects specification cross-section fixed (dummy variables) r-squared 0.666566 mean dependent var 6.630766 adjusted r-squared 0.637641 s.d. dependent var 10.57331 s.e. of regression 6.014334 akaike info criterion 7.101703 sum squared resid 37167.76 schwarz criterion 7.564614 log likelihood -3334.567 hannan-quinn criter. 7.367147 f-statistic 6.016753 durbin-watson stat 1.633136 prob(f-statistic) 0.000000 table 3 above shows the fixed effect of the third model (roe). the r-square value of 0.666566 shows that, in this effect, employed independent variables (i.e. liquidity management ratio (lqm), account for only 66.66% of variations in the dependent variable i.e. financial performance as measured using the return on equity of the sampled 6 deposit money banks. the durbin-watson statistics value of 1.633136 is seen to be within the relevant range and therefore shows the presence of negative serial correlation which is acceptable. the f-statistics value of 6.016753 at a probability value of 0.000000 which is less than the 0.05 significance level and therefore shows a viable model. liquidity management ratio (lqm) shows a positive (6.56e-07) and insignificant (0.7311> 0.05) influence on the return on equity of sampled deposit money banks, which shows that, a unit increase in liquidity management ratio (lqm) is likely to have a 6.56e-07 unit increase in roe. the fixed effect results cannot be accepted without the diagnosis test, which will enable the determination of the optimal effect. we therefore proceed to the next effect (random effect). random effect (model 3) random effects models will estimate the effects of time-invariant variables. table 4 random effects regression output for model 3 – return on equity (roe). dependent variable: d(roe) method: panel egls (cross-section random effects) date: 02/4/22 time: 07:46 sample: 2010 2020 periods included: 11 cross-sections included: 7 total panel (unbalanced) observations: 77 swamy and arora estimator of component variances american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 224 www.americanjournal.org variable coefficient std. error t-statistic prob. c 7.637747 0.777333 7.737177 0.0000 d(lqm) 5.43e-07 1.73e-07 0.276767 0.7666 effects specification s.d. rho cross-section random 7.132352 0.4420 idiosyncratic random 7.014234 0.5570 weighted statistics r-squared 0.350462 mean dependent var 2.770777 adjusted r-squared 0.275747 s.d. dependent var 7.777755 s.e. of regression 7.006675 sum squared resid 41274.71 f-statistic 0.074351 durbin-watson stat 1.651363 prob(f-statistic) 0.777756 unweighted statistics r-squared -0.003273 mean dependent var 7.620776 sum squared resid 72754.74 durbin-watson stat 0.734502 table 4 above shows the random effect of the third model (return on equity). the r-square value of 0.350462 shows that, in this effect, all employed predictor variables such as liquidity management ratio (lqm), account for only 35.05% of variations in the dependent variable i.e. financial performance as measured using the return on equity of the sampled 8 deposit money banks. the durbin-watson statistics value of 0.734502 is seen to be very low and shows positive serial correlation. the f-statistics value of 0.074351 at a probability value of 0.777756 which is greater than the 0.05 significance level shows a weak model. from the coefficients and significance level, the study observes that; but liquidity management ratio (lqm) shows a positive (5.43e-07) and insignificant (0.7666> 0.05) influence on the return on equity of sampled deposit money banks, which shows that, a unit increase in liquidity management ratio (lqm) is likely to have a 5.43e-07 unit increase in roe the study cannot accept the result of this effect until we employ our diagnosis test to know if it is the optimal model. this therefore makes us proceed to the next effect (fixed effect). diagnostic test it is improper to manually choose the optimal effect manually. some diagnostic test have been created to enable research determine the best effect between the pooled, fixed and random effect. these test includes the likelihood ratio test, hausman specification test, and the lagrange multiplier test. likelihood ratio test (compares pooled and fixed) this test seek to select the best effect between the pooled and fixed effect. the null hypothesis supports the pooled effect. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 225 www.americanjournal.org model 1: return on equity (roe) table 5: likelihood ratio test output for model 1 – return on equity (roe). redundant fixed effects tests equation: untitled test cross-section fixed effects effects test statistic d.f. prob. cross-section f 7.489563 (8,9) 0.0000 cross-section chi-square 433.647024 65 0.0000 table 5 which shows the likelihood ratio test shows a cross-section f-statistics value of 7.489563 at a probability level of 0.000 which is less than the 0.05 (5%) significance level shows the rejection of the null hypothesis. this therefore shows that the best model is the fixed effect, which represents the alternate hypothesis in this case. this therefore shows that the fixed effect in light of the pooled effect is more superior. hausman specification test this diagnostic test pits the random effect against the fixed effect. the null hypothesis in this case is the random effect. therefore, a retained null supports the random effect, while a rejected null hypothesis supports the fixed effect. model 1: return on equity (roe) table 6: hausman specification test output for model 1 – return on equity (roe). correlated random effects hausman test equation: untitled test cross-section random effects test summary chi-sq. statistic chi-sq. d.f. prob. cross-section random 6.386492 4 0.0057 cross-section random effects test comparisons: variable fixed random var(diff.) prob. lqm -0.000000 -0.000000 0.000000 0.5474 source: extract from e-view version 11 outpu table 6 shows the hausman specification test which seeks to examine the most valuable effect between the random and fixed effect. the cross-section random chi-square statistics value of 6.386492 at a probability level of 0.0057 which is less than the 0.05 significance level leads to the rejection of the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 226 www.americanjournal.org null hypothesis. this shows that the fixed effect remains the paramount effect in the model. the study therefore moves on to determine the long run effect using the fixed effect. lagrange multiplier tests (compares random to fixed effect) table 7: lagrange multiplier tests output for model 1 – return on equity (roe). lagrange multiplier tests for random effects null hypotheses: no effects alternative hypotheses: two-sided (breusch-pagan) and onesided (all others) alternatives test hypothesis cross-section time both breusch-pagan 450.6159 6.021546 450.6545 (0.0000) (0.0056) (0.0000) honda 25.05940 7.146110 16.59465 (0.0000) (0.0019) (0.0000) king-wu 25.05940 9.146110 6.207052 (0.0000) (0.0025) (0.0000) standardized honda 25.62127 6.564644 11.42569 (0.0000) (0.5402) (0.0000) standardized kingwu 25.62127 0.564644 4.422665 (0.0000) (0.5402) (0.0000) gourierioux, et al.* -- 450.6545 (< 0.01) *mixed chi-square asymptotic critical values: 1% 7.289 5% 4.321 10% 2.952 using the lag range multiplier test output in table 7, it can be observed that all probability levels point to the significance of the fixed effect model. this therefore further reinforces the optimal nature of the fixed effect. the study will therefore proceed to subsequent test using the fixed effect technique so as to ensure that future results are valuable. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 227 www.americanjournal.org error correction model (model 3return on equity): table 8: error correction model summary for model 1 dependent variable: roe method: panel least squares date: 02/4/22 time: 08:49 sample: 2010 2020 periods included: 11 cross-sections included: 8 total panel (unbalanced) observations: 88 variable coefficient std. error t-statistic prob. c 8.624018 0.458544 16.46165 0.0000 lqm 8.15e-05 1.2e-05 6.205651 0.0000 ecm(-1) -0.626421 0.120382 -5.228680 0.0000 effects specification cross-section fixed (dummy variables) r-squared 0.888586 mean dependent var 8.620886 adjusted r-squared 0.828641 s.d. dependent var 10.56321 s.e. of regression 8.014234 akaike info criterion 8.101602 sum squared resid 38188.68 schwarz criterion 8.584614 log likelihood -2234.568 hannan-quinn criter. 8.286148 f-statistic 8.016853 durbin-watson stat 1.833128 prob(f-statistic) 0.000000 the above error correction estimate in table 8 shows that the adjustment displays the expected negative sign based on its output of -0.626421, this signifies that the discrepancies between the short and long run can be adjusted backwards by approximately 62.64% annually towards maintaining equilibrium in both long and short run. the coefficient of determination (r2) displays a value of0.888586 which shows that in the long run, the predictors variables jointly account for approximately 88.86% of variations in the criterion i.e. the level of asset quality (asq) systems adequately captures the movement of employed criterion i.e. return on equity. all variables were found to be statistically significant as deduced from the all their respective probability level which were lower than the 0.05 (5%) significance level. the f -statistics probability level of 8.016853 at a probability level 0.00000 which is less than the 0.05 (5%) significance level and shows a great fit of the linear panel model while the durbin watson statistics value of 1.833128is identified to be within the relevant range. hypotheses testing the t-statistics and probability level are used to test the significance of employed variables in the long run individual hypotheses stated in the null and alternate form as follows. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 228 www.americanjournal.org h01: liquidity management ratio does not significantly relate to return on equity in quoted deposit money banks. h01: liquidity management ratio significantly relates to return on equity in quoted deposit money banks. utilizing the error correction estimate in table 6, it can be seen that the t-statistics coefficient of liquidity management ratio(lqm) of 6.205651 is greater than ±1.98/2and at the probability level of 0.0000 which is lower than the 0.05 significance level and therefore shows that this variable is statistically significant. the study therefore rejects the null hypothesis and accepts the null hypothesis that liquidity management ratio (lqm) significantly affect return on equity in quoted deposit money banks. liquidity management ratio (lqm) shows a positive and significant (0.0000 < 0.05) influence on the return on equity of sampled deposit money banks, which shows that, a unit increase in liquidity management ratio (lqm) is likely to have a 7.15e-05 unit increase in roe in the long run. this empirical finding is consistent with several study findings. it include the works of zainudi., mahdzan and leong (2018). it is in line with apriori expectation which infact projected significant effect on predictor and criterion sub-variables. conclusion and recommendations this study underpins with evidence the fact that there exist a strong positive relationship between efficient liquidity management and financial performance in terms of return on equity. therefore the need for efficient management liquidity management in the banking industry cannot be over emphasized particularly for reasons of maximizing profit levels and concurrently remaining liquid. for the banking industry in nigeria, there is the need to emphasize the need to remain liquid. the study buttresses the fact that efficient liquidity management can significantly influence returns n equity and as well relate positively to financial performance and thus its stability. the high number of illiquid banks in the nigerian banking industry as seen in recent times appears to attest to the fact that most banks in the nigeria do not either place emphasis on strategic liquidity management or are deficient in it. even though they may be efficient, most businesses in the nigerian economy are transacted purely on cash basis such that managing liquidity effectively become cumbersome. effective liquidity management creates good public confidence in the financial system of a country and good public confidence prevents a “run” on the banking system and consequently on the liquidity state of banks. since economic laws and variables from this study and other related researchers have attested to the fact that there is correlation between efficient liquidity management and banking performance, the poor liquidity state of nigerian banks could be hanged on management. therefore, there is the need to formulate policies that will enhance effective liquidity management in the banking industry in nigeria and the public usage of cash. below are the recommendation of the study: i) the need to replace being practiced in the advance economies of the world. investing on human capital may be beyond just employees but also frequently creating an interactive forum where bank clients could be sensitize on a variety of activities they indulge in that are capable of hindering effect liquidity management. ii) the need to invest on human capital by banks as it offers the highest returns in terms of increasing performance and it also enhances the level of competence of the employee. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 229 www.americanjournal.org iii) regulatory authority should put in place appropriate policy with compliance measures to check high volume cash transaction and cash hoarding prevalent in the economy. this is important because liquidity management is cumbersome and may be ineffective in an economy that operates solely on large volume of cash transaction or conducts a large proportion of its transactions in cash. the central bank of nigeria should critically review and follow-up or monitor the effectiveness of liquidity policy tools in banks and where necessary, appropriate sanctions placed on erring banks. this may be so in order to ensure effective implementation of these policy tools in an attempt to achieve desired liquidity level while it may be true that cbn is effectively enacting and reviewing liquidity management tools such as the open market operation cash reserve requirement, liquidity ratios, monetary policy rate among as often been stated in the annual and economic reports, compliance by the beneficiary banks is not guaranteed as banks returns to the regulatory authority has been reportedly falsified over times. limitation and suggestion for further studies the findings of the current study are applicable only to eight international deposit money banks in nigeria which were in operation as at december 2020 and therefore it is hard to generalize these findings to all financial institutions. 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(2022). the impact of credit risk management in financial performance of commercial banks in nepal. international journal of arts and commerce, 8(1),23-41 18. uremadu, s. (2022). bank capital structure, liquidity and profitability evidence from the nigerian banking system. international journal of academic research in accounting. finance and management sciences, 1(20), 1-13 19. wilner, b. (2023). the exploitation of relationship in financial distress: the case of trade credit international journal of economics, finance and management sciences, 5(3),146-161 20. zhang, y. (2012). documentary letter of credit fraud risk management. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 134 www.americanjournal.org assessment of the increase in economic potential in the clusters of the textile industry of the republic of uzbekistan based on an industry-specific approach rustamova makhfuza makhmudovna department "management", fergana polytechnic institute, fergana, republic of uzbekistan e-mail: m.rustamova1005@gmail.com a b s t r a c t k e y w o r d s this article is devoted to the study of the possibilities of increasing the economic potential in clusters of the textile industry using an industryspecific approach. the paper provides an overview of the textile industry, identifies its key characteristics and current challenges. then a theoretical overview of the concept of clusters and their importance for the development of the industry is proposed. based on these data, a methodology for assessing the economic potential of clusters is being developed, as well as an empirical analysis of the current state of clusters in the textile industry. as a result of the study, conclusions and recommendations are formulated aimed at improving the effectiveness of cluster initiatives in the textile industry and determining further research directions in this area. clusters of the textile industry, economic potential, assessment, improvement, industry approach, competitiveness, innovation, sustainable growth, business development, technological base, production efficiency. introduction in the economy of the republic of uzbekistan, the concept of clusters has begun to develop actively in recent years, and this is a key moment for further stimulating the growth of industries. the cluster approach allows to reduce production costs, increase the competitiveness of enterprises, stimulate innovation and improve access to resources and markets. in the context of globalization and uzbekistan's integration into the world economy, clusters are becoming an important tool for attracting investment and developing not only the textile industry, but also other sectors of the economy. the textile industry plays a key role in the economy of uzbekistan, providing a significant contribution to gdp and providing labor resources [1]. in the context of the cluster approach, textile clusters become the basis for the development of the country's industrial complex. clusters in the textile industry contribute to optimizing production processes, improving product quality and competitiveness in global markets. the purpose of this article is to assess the possibilities of increasing economic potential in clusters of the textile industry using an industry-specific approach. the study is supposed to analyze the current state of the textile industry, identify key factors influencing the development of clusters in this area, american journal of business management, economics and banking volume 23 april 2024 p a g e | 135 www.americanjournal.org and develop assessment methods and mechanisms to increase the economic potential of clusters. ultimately, the article aims to develop recommendations for improving the effectiveness of cluster initiatives in the textile industry and identify strategies for the development of this sector based on an industry-specific approach. it is especially important to note that textile clusters of the republic of uzbekistan can be an important factor for the socio-economic development of the regions where they are located. the creation and development of clusters in the textile industry contributes to the creation of new jobs, infrastructure development and improvement of the standard of living of the population [2]. the purpose of our study is to assess the increase in economic potential in the clusters of the textile industry of the republic of uzbekistan based on an industry-specific approach. to achieve this goal, we set ourselves the following tasks: to analyze the current state of textile clusters in uzbekistan identify the main factors influencing the economic potential of clusters in the textile industry to evaluate the effectiveness of the cluster approach for the development of the textile industry to offer recommendations for improving the work of textile clusters and increasing their economic potential the study of these issues will reveal the prospects for the development of the textile industry in the context of the cluster approach and identify strategies to achieve sustainable economic growth in this key sector of the economy of the republic of uzbekistan. despite significant achievements, the textile industry of uzbekistan is facing a number of challenges. one of the main challenges is the need to modernize production and introduce new technologies. it is important to increase production efficiency, improve product quality and reduce production costs [3]. another important aspect is the diversification of export markets. representatives of the textile industry of uzbekistan should actively seek new markets in order to reduce dependence on a limited number of partners. the lack of qualified personnel and infrastructure is also a problem. it is necessary to invest in education and training of specialists, as well as in the development of logistics infrastructure to improve transport accessibility. to effectively overcome the challenges facing the textile industry in uzbekistan, it is important to develop a cluster approach. clusters are networks of interconnected enterprises and organizations specializing in a particular industry. they facilitate the exchange of knowledge, experience and resources, as well as joint work on solving common problems. the development of clusters in the textile industry can lead to increased production efficiency, improved product quality and competitiveness in the global market. in addition, clusters can contribute to the innovative development and modernization of the industry. ii. main part the economic potential of a cluster is defined as a set of resources, competencies and opportunities available to enterprises and organizations within the cluster to achieve competitive advantages and sustainable development[4]. this includes not only material resources, but also human capital, technological knowledge, innovation potential and institutional support. the increase in the economic potential of the cluster depends on a number of factors 1. cluster policy and development strategy: having a clear cluster development strategy supported by government policy helps to strengthen its potential. american journal of business management, economics and banking volume 23 april 2024 p a g e | 136 www.americanjournal.org 2. innovation and technological development: the active introduction of innovations and new technologies into the cluster's production processes contributes to its competitiveness. 3. interaction between cluster participants: cooperation and exchange of knowledge and experience between enterprises, scientific institutions and government agencies within the cluster helps to create synergies and increase efficiency. 4. human capital development: education, professional training and skills development of cluster employees play an important role in increasing its potential. when assessing the potential of clusters in uzbekistan, it is important to take into account the sectoral characteristics and needs of the country's economy. the industry-specific approach makes it possible to more accurately identify the strengths and weaknesses of clusters in the context of specific industries, identify key success factors and develop effective development strategies. the application of the sectoral approach will make it possible to more accurately determine the potential of clusters in uzbekistan and develop targeted measures for its implementation, which contributes to the sustainable and accelerated economic development of the country[5]. to assess the economic potential in textile industry clusters, it is necessary to identify key success indicators. these can be: production and export volume: estimating the volume of production and exports of textile products is a key indicator of the success of the cluster. competitiveness level: analysis of the competitiveness of cluster products in the global market. innovation activity: assessment of the level of innovation activity in the cluster, including the introduction of new technologies and the development of new products. economic effect: calculation of the economic effect of cluster activities, including profits, tax revenues and employment. various models can be used to assess the economic potential of textile industry clusters, including: competitiveness assessment model: assessment of the competitiveness of the cluster using various indexes and analysis methods. production efficiency assessment model: analysis of production efficiency in the cluster, taking into account costs, production capacity and product quality. innovation potential assessment model: assessment of the cluster’s potential for innovative development, taking into account the availability of scientific research, patents and other innovative assets. despite some challenges, several successful cluster initiatives can be identified in the textile industry of uzbekistan that contribute to the development of the industry[6]. one such example is the creation of specialized textile parks, which combine production enterprises, infrastructure and services on one territory for the development of textile business. such parks provide entrepreneurs with access to modern infrastructure, training and advice, which helps increase production capacity and improve product quality. an empirical analysis of clusters in the textile industry of the republic of uzbekistan allows us to identify both the successes achieved and the challenges faced by clusters in the country. understanding these factors is necessary to develop effective cluster development strategies that promote sustainable economic growth and increase the competitiveness of the uzbek textile industry. american journal of business management, economics and banking volume 23 april 2024 p a g e | 137 www.americanjournal.org iii. scientific and theoretical proposal and recommendations. based on the results of the study, the following practical recommendations have been developed to increase the economic potential of clusters in the textile industry of uzbekistan: continue to modernize production and introduce new technologies to improve efficiency and product quality. strengthen cooperation between enterprises within clusters to ensure more efficient use of resources and jointly develop innovative solutions. increase the level of qualifications of personnel through education and training, which helps to increase the productivity and competitiveness of clusters. for further in-depth study of the economic potential of clusters in the textile industry of the republic of uzbekistan, it is recommended to pay attention to the following areas of research: studying the potential for the development of new types of textile products, taking into account global trends and market needs. analysis of the effectiveness of existing cluster initiatives and identification of successful practices for their further scaling. studying the impact of cluster development on the socio-economic indicators of the regions of uzbekistan and developing recommendations for a more even distribution of development throughout the country. in general, based on the above conclusions and recommendations, we can conclude that a systematic approach to the development of clusters in the textile industry of uzbekistan is necessary, taking into account the specifics of the industry and the needs of the country’s economy. references: 1. makhmudovna, r. m. (2022). information support for management of investment activities in the conditions of a competitive environment at industrial enterprises of uzbekistan. asian journal of multidimensional research, 11(2), 37-45. 2. рустамова, м. (2022). развитие инновационно-инвестиционной деятельности как фактор реализации инновационного потенциала предприятия. бюллетень науки и практики, 8(3), 371-378. 3. rustamova m.m. (2022). methodological bases for assessing the efficiency of the management of the textile industry enterprise. journal of analysis and inventions (rjai), p. 82-93. 4. makhmudovna, r. m. (2023). efficiency of development of economic potential of textile industry enterprises. european journal of economics, finance and business development, 1(2), 14-19. 5. makhmudovna, r. m. (2021). use of digital technologies in the textile industry. central asian journal of innovations on tourism management and finance, 2(11), 71-74. 6. шарипов, з. з., & мамадалиева, ш. м. (2020). кластеризация текстильной промышленности узбекистана: проблемы и перспективы. экономика, бизнес и право, 95101. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 1 www.americanjournal.org schematicheskiy analysis tsifrovyx izmeritelnyx priborov tairov baxtiyor boboqulovich head of the department of metrology and standardization, associate professor bukhara engineering -technology institute karshiyev zokhidjon department teacher “metrology and standardization” bukhara engineering -technology institute republic of uzbekistan, bukhara abstract k e y w o r d s in the article, the conversion of the measured value entered into digital measuring instruments into a digital code occurs automatically. information about digital measuring devices for automatic conversion of the measured value into a digital code is highlighted. based on this, the article reflects some types of digital measuring devices, and you will get a conclusion about the measurement results of digital computing devices and the quantitative qualities of their products. analog, compensator, quantization, discrete error, digital voltmeter, electromechanical relay, microprocessor. introduction there are different types of measuring instruments. they can be simple or complex, high or low precision. measuring instruments must have standardized metrological properties, and these metrological properties are checked periodically. the correct determination of the value of the quantity being measured in the process of measurement depends on the correct selection and operation of this measuring tool. during the millennia bc, the development of the commodity exchange led to the appearance of weighing scales and balances; primitive measuring instruments; setting a daily and daytime schedule, developing a calendar (measuring time); in astronomical observations and shipwrecks (measurement of angles and distances) [1]. in the course of scientific research, some measurements were made during the active period, for example, the angles of the rays were measured, the arc of the earth's meridian was determined. until the 15th century, measurement techniques were not separated from mathematics, such as "geometry" (measurement of the earth), "trigonometry" (triangle measurement), "threedimensional area" and others. improvement of measurement technology based on experimental methods in xvi-xviii centuries. this period includes relative clocks, microscopes, barometers, thermometers, first electrical measuring instruments and other measuring instruments used in scientific research. in the late 16th and early 17th centuries, increasing the accuracy of measurements led to a american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 2 www.americanjournal.org revolutionary scientific discovery. for example, accurate astronomical measurements of t. brop allowed i. kepler to determine the elliptical orbit of hundreds of planets [2]. galileo galilei, i. newton, h. huygens and others participated in the creation of large-scale instruments and the development of their theory, each physical phenomenon was manifested in the corresponding instrument, which in turn helped to determine the value of the studied quantity gave and laws of influence between different quantities. for example, the concept of temperature gradually evolved and the temperature scale was created [3]. the operation of many digital measuring devices is based on the conversion of a continuous (analog) measured quantity into a digital quantity. except for some instruments designed to measure discrete quantities. the process of digital coding of a continuous quantity is a set of quantization (discretization) of this quantity in terms of level and time. in digital measuring instruments, the input measured value is automatically converted into a digital code. automatic conversion of the measured amount into a digital code is a sign of identification of digital measuring instruments. based on this, even if the measurement results are output to a digital computing device, they are not included in the digital instruments because these results are generated due to manual operations. for example, voltage compensators with manual calibration and decademagazine resistance bridges are not considered digital instruments. digital measuring instruments include two mandatory functional links: an analog-to-digital converter and a digital countdown device [4]. digital measurement is used not only as a tool joint, but also as an autonomous device. as a result of the quantization of the measured quantity by level, a discrete error appears, which is based only on the fact that an infinite number of values of the measured quantity are expressed in a limited number of indicators of digital measuring devices [5]. discrete error is characteristic of digital measuring instruments, it does not exist in analog instruments. but this error is not an obstacle to improve the accuracy of the instruments, because by choosing the number of quantization levels appropriately, the discrete error can be made much smaller. practice shows that digital measuring instruments, as a rule, have much smaller errors than analog instruments designed to measure the same physical quantities. discretization of the continuous quantity x(t) in time is carried out in order to transform it into a discrete (continuous) quantity in time, which coincides with the corresponding values of x(t) only at certain moments of time. the interval between two adjacent time instants of the discretization is called the discretization step, and it can be variable or fixed [6]. the time discretization of a continuous measurand is a source of error in digital measuring instruments. however, by choosing an appropriate discretization step (such as choosing the quantization level), the observed error can be minimized. constructive expression digital measuring devices can be divided into electromechanical and electronic types. electromechanical types have contact elements (stepper motors, relays), and electronic types have contact elements (electronic or semiconductor). the development of digital measuring devices is progressing by replacing contact devices with non-contact ones [7]. as an example of digital measuring devices, we can give an example of an octanometer based on metrological standards. when we drive, we pass by gas stations every day or every other day. have you ever wondered what gasoline brands actually mean and how to determine its quality while you're waiting for your gas tank american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 3 www.americanjournal.org to be filled? poor quality fuel will cause unpleasant situations with the engine in the future. in order to prevent this from happening, it is important to check the quality of the fuel poured into our car! electromechanical digital instruments electromechanical digital devices ("contact") for motors, relays, reconnection switches, etc. has s. they are not widely used because they have a long measurement time and a short service life. a small error in them is the advantage of these tools. as an example, an electromechanical digital voltmeter designed for measuring direct voltage is considered below (fig. 1) [8]. 1 picture. a simplified diagram of an electromechanical digital voltmeter: ux is the measured voltage; dv stepping motor; uo base voltage; dsh decoder; te – comparison element; rohq is a device that starts a digital account; k – amplifier; p reconnection key (perekluchatel) figure 1 shows electrical circuits with a solid line, and mechanical connections with a dotted line. stepper motor dv, depending on the design of the specific device type, can be electrically or mechanically connected to dsh and rohq, which is indicated by two (solid and dotted) lines in the figure [9]. for comparison with the measured voltage ux, the compensating (replacing) voltage uk transmitted to the te is determined by the following expression: ik n n u u = 0 (1) where n is the number of r resistors (the total number of steps of the voltage divider); ni is the number of connected steps of the voltage divider. we note that uk changes with steps ∆uk = u0/n with discontinuities. the value ∆uk determines the error of the instrument's discreteness. theoretically, the discrete error can be very small (the limitation has a constructive and technical description). it depends on the number of resistors forming the voltage divider. the value of ∆u is equal to the difference between the voltages ux and uk at the output of the voltage comparison element: kx uuu −= (2) if ux ≠ uk, then ∆u ≠ 0, it is transmitted to the input of the amplifier and, after amplification, affects the dv stepper motor, which starts to move the sliding contact of the reconnection switch (perekluchatel). in this case, the compensating voltage uk obtained from the divider changes. the american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 4 www.americanjournal.org increase of uk (if ux>uk) or its decrease (if ux<uk) continues until uk is approximately equal to the measured voltage ux. in this case, the dv engine will stop and the calculation of indicators from rohq will be started. dsh decoder is usually associated with engine and rohq (like rohq) an electronic device. in this case, the connections between dv, dsh and rohq are electrical. but the devices in question can be electromechanical. at that time, communication between them will be mechanical. it should be mentioned that instead of a stepper motor, an electromechanical relay is often used, which performs the necessary switching in the measurement circuits. divisors of the voltage, as a rule, are carried out by decade (for example, a decade of whole units of the measured quantity, a decade of decimal parts, a decade of hundredth parts, etc.) [10]. the speed of electromechanical digital measurement tools is equal to 1-2 measurements per second. a typical accuracy class is 0.05. electromechanical digital instruments and an even higher class of accuracy (from 0.01 to 0.005) are known. fig. 2. electromechanical relay scheme digital multimeters measure constant and alternating currents, constant and alternating voltages, resistances of resistors, frequencies of electrical oscillations, etc. used to measure . in digital measuring instruments, the following tasks are assigned to the microprocessor: 1) management of analog-digital and digital-analog conversion processes; 2) managing the conversion of various physical quantities into electrical quantities (for their subsequent measurement); 3) automatic selection of the measurement limit; 4) tool interface management; 5) control of a digital computing device; 6) statistical processing of measurement results; 7) automatic editing of systematic errors and autocalibration; 8) diagnosis of disorders. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 5 www.americanjournal.org fig. 3. microprocessor circuit the presence of microprocessors in multimeters increases the reliability of digital measuring devices, improves their metrological and operational characteristics. at the same time, the trend in the development of digital measuring techniques leads to a sharp increase in the value of digital measuring devices (the value of digital devices is usually 2-3 times higher than the value of a computer). the high cost makes it difficult to widely use digital measuring devices, which can be replaced by expanding the use of analog measuring devices (electromechanical and electronic), as well as using measuringcomputer systems. conclusion in conclusion, digital measuring devices are widely used not only in the oil and gas industry, but also in various fields. the effectiveness side is that we have seen that time and quality have been formed at a high level during our research. references 1. fayzullaevich, f. s., arashovich, m. b., boboqulovich, t. b., & anvarovich, a. a. (2020). development of technologies for producing catalystfor destructive hydrogenization of asphalt-free oil of heavy sulfur oil. journal of critical reviews, 7(14), 75-80. 2. хужжиев, м. я., & ризокулов, м. н. у. (2016). очистка и осушка газов растворами гликолей. наука и образование сегодня, (3 (4)), 33-34. 3. хужжиев, м. я., & салимова, з. с. (2021). очистка природного газа от меркап и серных растворов. universum: технические науки, (3-3 (84)), 83-86. 4. хужжиев, м. я., & салимова, з. с. (2021). очистка природного газа от меркап и серных растворов. universum: технические науки, (3-3), 83-86. 5. tairov, b. b. (2022). standartlashtirishning tatbiq etilishi dolzarb muammo sifatida. science and education, 3(11), 422-428. 6. yaxyoyev, s. h. o. g. l. (2021). neft xomashyosining koks hosil qilish texnologiyasini tadqiq qilish. science and education, 2(2), 152-163. 7. barakaev, n., mirzaev, o., toirov, b., & alimov, a. (2021, april). justification of the parameters of parts of a walnut cracking machine. in journal of physics: conference series (vol. 1889, no. 2, p. 022061). iop publishing. 8. tairov, b. b. (2022). standardization in foreign countries. oriental journal of education, 14(6), 92-96. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 6 www.americanjournal.org 9. ismatov, n. a., radjabova, v. e., & toirov, b. b. (1999). biochemical and consumers qualities of sorgo flour. uzbekskii khimicheskii zhurnal, (5/6), 82-83. 10. toirov, b. b. (2021). axborot texnologiyalari mahsulot sifatini boshqarish vositasi sifatida. science and education, 2(2), 338-343. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 267 www.americanjournal.org evaluation of the effectiveness of the management system of chemical industry enterprises avulchayeva feruza dzhurakuziyevna assistant of the department of management, fergana polytechnic institute, fergana, uzbekistan a b s t r a c k e y w o r d s the article describes the structure, classification, and features of management models at chemical industry enterprises, organizations and stages of managerial work. the importance of improving management models is described. industrial enterprises, chemical industry, management model, management system, distribution of powers, stages, process description. introduction the modern theory of management, firstly, expresses the need to match management efficiency indicators with the enterprise efficiency and capacity indicators, and secondly, shows the need to take into account multi-faceted influences on management using a set of additional tools [1,2,3,4]. the criterion of enterprise management efficiency is inextricably linked to its goals. the development of the goals of the enterprise is an action of the management system, and their implementation is carried out within the scope of the management system and within the managed field. the effectiveness of enterprise management in many cases depends on long-term planning of its activities and prediction of future changes. to a certain extent, this situation creates an opportunity to reduce risk in the conditions of an unstable economy [5]. therefore, the modern theory of management, firstly, expresses the need to match management efficiency indicators with enterprise efficiency and potential indicators, and secondly, it shows that there is a need to take into account multilateral influences on management using a set of additional tools. shows. in general, the management system and its effectiveness can be explained at three levels: [6-11] 1. at the expense of the organic part of the system, which is considered much higher. 2. as an independent whole system. 3. as a set of mutually compatible components that exist in the system and have special properties. the product of enterprise management activity is also three-dimensional. first, this product is interpreted as the result of management activity and effectiveness of the field of management, and second, it is expressed as an intermediate tool representing the principle of the quality and economy of american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 268 www.americanjournal.org the management system; and thirdly, the product is interpreted as the quality of actions and stages of management work, the nature of using the available potential, and the integration of management tools [12-14]. the analysis of theoretical and practical approaches to the assessment of management efficiency in the management of the enterprise makes it possible to indicate the following directions of analysis of various aspects of overall efficiency, namely: − economic indicators of management efficiency; − effectiveness in ensuring external and internal social policy. in this, the goals of the enterprise and the mutual relations of the society are determined; − effectiveness of management as a self-regulating system. this shows the ability to adapt to the requirements of scientific and technical development and the social conditions of production; − efficiency of the information system. in this, the information supply of the management and the management effects on the enterprise based on it are shown. the complexity of production and economy, the growth of scientific and technical development, increased competition, the need to use raw materials and energy sources in the management process, and the manifestation of various effects on the external environment, the general results of the enterprise's activity are the rationality of its structure and in all elements and will depend on the effectiveness of the management process in the departments [15-18]. the figure below shows the main factors that ensure the overall effectiveness of management and their interrelationship. figure 1. the structure of management efficiency assessment in a systematic approach achievements performance quality savings economic strategy organizatio nal information supply material resources managem ent manageme nt solutions management efficiency real management efficiency effectiveness of management capacity technological changes based on production changes in the quality of the workforce external and internal socioeconomic conditions affecting the system american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 269 www.americanjournal.org it is important to take a systematic approach to evaluating the effectiveness of corporate governance, and this approach includes the following principles:[18-20] 1. increasing influence of the human factor in management. the more complex the structure of the management field or the more centralized the management in the enterprise, the more valuable the influence of the subjective approach of the management in decision-making. 2. rapid changes in external environmental factors. legislation and regulatory acts apply to such factors. 3. acceleration of scientific and technical development. such factors include technical and technological factors. the systematic approach explains the evaluation of a large amount of information from various categories using universal indicators. this approach includes the following divisions: − impact of all principles of the evaluated criterion; − researching each principle of the assessed criterion through appropriate analysis methods; − publicization (universalization) of obtained assessment results; − processing of results; − developing proposals for improving the evaluated criterion. the main goal of implementing a systematic approach is to adopt a universal indicator of evaluation that allows comparison of evaluated areas and to increase the level of evaluation efficiency based on the application of all evaluated criteria. management efficiency can be interpreted in two ways, i.e. firstly, it can be expressed through the criterion of supporting efficient production, and secondly, flexibility to changes can be expressed as actions. based on this, the concept of production productivity appears on the basis of management efficiency. when evaluating the management system of chemical industry enterprises, financial indicators help to quantitatively determine the achieved results, but to determine the effectiveness of the real management system of the enterprise, it is necessary to use the expert evaluation method. in order to evaluate the management system of chemical industry enterprises, indicators such as management efficiency, the level of dissatisfaction of managers and employees, the level of increasing the working capacity of managers and employees, and the level of criticism of managers and employees of the enterprise were selected in the research work. it is recommended to use the following formula when evaluating the management system of enterprises1: 𝐵𝑡𝑠 = ∑ ∑ (𝛼𝑗𝛽𝑖𝑗)/5𝑛 → 5.0𝑚 𝑗=1 𝑛 𝑖=1 here: bts the effectiveness of the management system of enterprises; i 1, 2, ..., n number of experts; j 1,2, ..., m is a quantitative indicator of management system evaluation; aj management system efficiency quantity category; bij an indicator of evaluation of the management system by experts according to a 5-point system; 5n is the number of points, the number of n-experts. the efficiency of the management system of industrial enterprises increases by using modern management methods and digitization processes. considering b_ts→5.0, it is recommended to divide the efficiency of the control system into the following criteria: 1 author development american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 270 www.americanjournal.org the weak management system is in the range of 0.00-3.49 coefficient; an effective management system is in the range of 3.50-4.45 coefficients; a strong management system is in the range of 4.46-5.00 coefficient; using the proposed method, it was determined that the management system of "ferganazot" jsc and "navoiyazot" jsc is weak, i.e. effective management mechanisms are not established. in order to improve the management system in enterprises, it is required to conduct the following activities: − to create the necessary conditions, and apply material and moral motivations in order to reduce the discomfort of managers-employees, training courses on the issues that managers-employees may allow should be organized; − it is necessary to organize targeted work on sending managers and employees to training courses in foreign and local institutions; − it is necessary to organize the process of communication between workers and managers in a democratic way, to develop specific systematic mechanisms for problems; − it is necessary to increase the profitability of the product to an absolute level through the effective organization of relations with consumers; − enterprises should improve activities related to the development of export activities to increase brand value, produce product quality based on international standards that meet consumer demand; − in the management model, raw materials, production process and logistics service should be organized in the form of a cluster. references 1. мирбабаев ф.а. корхоналар бошқарув тизимини шакллантириш хусусиятлари ва бошқарувнинг бозор шароитидаги муаммолари.// “иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 2, март-апрель, 2015 йил. 5 б. 2. ковалишина г.в. системный подход в оценке эффективности управления фирмой. аудит и финансовый анализ. № 2, 2002 г. 169-183 с. 3. авулчаева ф.ж. саноат корхоналарини иқтисодий бошқариш моделларини такомиллаштириш йўллари. “biznes-эксперт” номли журналида №7 2020 йил 104-106 бетлар. 4. avulchayeva, f. (2023). features of implementation of business models at chemical industry enterprises. science and innovation, 2(a6), 221-226. 5. avulchaeva, f. (2022). improving the management system of chemical industry enterprises. science and innovation, 1(a8), 386-393. 6. авулчаева ф.ж. бизнес моделларини стратегик ёндашув асосида такомиллаштириш. international scientific-practical distance conference «the 21 st century skills for professional activity» 2021/vi. 69-73 бетлар. 7. abduvakhidovna, y. n. (2022). classification of innovative strategies of industrial enterprises. international journal of social science & interdisciplinary research issn: 2277-3630 impact factor: 7.429, 11(06), 239-242. 8. yuldasheva, n. (2022). scientific and theoretical aspects of the development of innovative strategies in the management of industrial enterprises. bulletin of science and practice, 8(5), 457461. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 271 www.americanjournal.org 9. юлдашева, н. (2022). особенности управления стратегией инновационного развития на предприятиях. экономика и образование, 23(2), 129-135. 10. ugli, x. s. y. (2022, may). agrotourism as a factor in the development of agrotouristic facilities in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 265-267). 11. юлдашева, н. а. (2022). научно-теоретические аспекты разработки инновационных стратегий в управлении промышленными предприятиями. бюллетень науки и практики, 8(5), 457-461. 12. yuldasheva, n. a. issues of active development of the digital economy. isj theoretical & applied science, 5(97), 375-379. 13. юлдашева, н. а. (2018). методика диагностики предприятия в системе антикризисного управления. theoretical & applied science, (4), 248-252. 14. хусанбоев, с. е. (2022). перспективные направления развития агротуризма в республике узбекистане. бюллетень науки и практики, 8(5), 476-482. 15. юлдашева, н. а. (2021). вопросы применения цифровой трансформации. in наука сегодня: задачи и пути их решения (pp. 51-52). 16. yuldasheva, n. a. (2019). innovative management in improving anti-crisis management. the way of science, (1 (59)), 51. 17. yuldasheva, n. a. (2021). factors influencing the personnel management system in industrial enterprises. journal of management value & ethics. july-sept, 21. 18. yuldasheva, n. (2022). features of the process of forming innovative strategy under conditions of modern realities. academic research in modern science, 1(9), 310-312. 19. юлдашева, н. а. (2022). иқтисодий фанларни ўқитишда талабалар мустақил ишининг мазмуни ва ўрни. oriental renaissance: innovative, educational, natural and social sciences, 2(special issue 27), 24-29. 20. юлдашева, н. (2022). корхоналарда инновацион ривожланиш стратегиясини бошқариш хусусиятлари. economics and education, 23(2), 129-135. american journal of business management, economics and banking issn (e): 2832-8078 volume 39, august 2025 p a g e | 16 www.americanjournal.org methodological approaches to assessment of entrepreneurial ability qaxramon madraximov, mansur matkarimov, azizbek yakubov , jahongirbek nurjonov a b s t r a c t k e y w o r d s assessing entrepreneurial ability is fundamental for understanding and predicting success in business ventures. this paper explores methodological approaches to assessing entrepreneurial ability, with a particular focus on utilizing surveys as a tool for self-assessment. a survey consisting of 20 questions was administered to a sample of aspiring entrepreneurs, aiming to capture various dimensions of entrepreneurial skills, traits, and behaviors. based on the survey results, a comprehensive assessment of individuals' perceived abilities in business endeavors was calculated. the paper discusses the design and implementation of the survey instrument, including the selection of questions and the rationale behind their inclusion. it also examines the process of data collection and analysis, highlighting key findings and insights derived from the survey responses. furthermore, the paper discusses the strengths and limitations of using self-assessment surveys in evaluating entrepreneurial ability, including considerations related to validity, reliability, and potential biases. by leveraging survey data, this study contributes to the ongoing discourse on methodological approaches to entrepreneurial assessment, providing valuable insights into the self-perceived competencies of aspiring entrepreneurs. the findings offer implications for entrepreneurship education, training, and talent development initiatives aimed at fostering the growth and success of future business leaders. entrepreneurial ability, assessment, methodological approach, entrepreneurship introduction entrepreneurship, often hailed as the engine of economic growth and innovation, has garnered significant attention from scholars, policymakers, and practitioners alike. at the heart of entrepreneurial endeavors lies the entrepreneurial ability—the set of skills, traits, and behaviors that enable individuals to identify, pursue, and capitalize on opportunities in the marketplace (oosterbeek et.al 2009). understanding and assessing entrepreneurial ability are crucial endeavors, as they hold the key to unlocking insights into the factors driving entrepreneurial success and failure. assessing entrepreneurial ability is a complex and multifaceted task, requiring the integration of various american journal of business management, economics and banking volume 39 august2025 p a g e | 17 www.americanjournal.org methodological approaches to capture the nuances of entrepreneurial behavior (pittaway and edwards 2012). from psychometric assessments and behavioral observation to case studies and simulation exercises, researchers and practitioners employ diverse tools and techniques to evaluate individuals' entrepreneurial aptitude. among these approaches, self-assessment surveys emerge as a valuable method for gauging individuals' perceptions of their own entrepreneurial capabilities (souitaris et.al 2007). in this paper, we delve into methodological approaches to assessing entrepreneurial ability, with a particular emphasis on the utilization of surveys for self-assessment purposes (jones and iredale 2010). the central aim is to explore the design, implementation, and implications of a self-assessment survey administered to a sample of aspiring entrepreneurs. by examining individuals' self-perceived abilities in various aspects of business endeavor, we seek to shed light on the complexities of entrepreneurial skill development and self-awareness (reynolds et.al 2005). the paper is structured as follows: first, we provide an overview of the theoretical foundations underpinning entrepreneurial ability and the importance of its assessment in entrepreneurial research and practice. next, we discuss methodological considerations in entrepreneurial assessment, highlighting the strengths and limitations of different approaches. we then introduce the design and implementation of the self-assessment survey, detailing the selection of survey questions and the rationale behind their inclusion. subsequently, we present the findings derived from the survey data analysis, offering insights into individuals' self-perceived entrepreneurial abilities. finally, we discuss the implications of the findings for entrepreneurship education, training, and talent development initiatives. methodology we used experimental studies to involve manipulating variables to observe their effects on entrepreneurial behavior or performance and conduct experiments to examine the impact of different types of feedback or incentives on individuals' decision-making in entrepreneurial contexts. network analysis was used as a technique in order to study the social networks of entrepreneurs and their impact on business success. by analyzing the structure and dynamics of entrepreneurial networks, key influencers, information flow patterns, and resource exchange mechanisms have been identified. survey was designed and used to collect important data for analyzing and grouping also making recommendations. results and discussion assessing entrepreneurial competency presents a fundamental challenge, given the absence of sufficiently precise and practical methodologies for measuring its quality indicators from a scholarly perspective. therefore, developing the methodology for assessing entrepreneurial competency occupies a central position. in order to develop the methodology for assessing entrepreneurial competency, the following five approaches were studied by economists (fig 1) american journal of business management, economics and banking volume 39 august2025 p a g e | 18 www.americanjournal.org fig 1 methodology of assessment of entrepreneurial ability approaches 1. approach to self-assessment of entrepreneurial ability. self-assessment of entrepreneurial competence is crucial for individuals engaging in small business and private entrepreneurship to possess a certain level of entrepreneurial knowledge. diagnosing an individual's entrepreneurial competence before embarking on a new venture can be instrumental. based on diagnostic results, clear recommendations can be provided for the enhancement of their entrepreneurial capabilities (johannisson 2010). self-assessment of entrepreneurial competence can be conducted through two main avenues offline and online testing methods. the diagnostic methodology for assessing individuals' entrepreneurial competencies comprises four stages: 1. utilizing test questions for self-assessment of entrepreneurial competence. 2. expression of respondents' personal attitudes towards the test questions assessing entrepreneurial competence. 3. calculation of the total score obtained from the completed questionnaire. 4. determination of the level of entrepreneurial competence development based on the aggregation of scores. the diagnostic assessment of individuals' entrepreneurial competencies is conducted through providing responses to the following 20 questions. the test, titled "entrepreneurial aptitude," prepared by t. matveeva, consists of the following clear questions aimed at determining entrepreneurial capability. these questions are about taking risks, international communication, motivation, experience, investments and others. each question in this diagnostic assessment is answered with either "yes" or "no." each positive response earns 1 point. the total sum of points corresponds to the entrepreneurial competence level of the individuals based on the following assessment scale: 17-21 points: entrepreneurial competence at the "developed" level. 13-16 points: entrepreneurial competence at the "proficient" level. 0-12 points: entrepreneurial competence at the "weak" level. table 1 information indicates that among 250 eligible youth surveyed, 26% possess all necessary qualities to become entrepreneurs, and after completing their higher education, they may start their own businesses. however, for the majority, 70% of them, reaching the level of competence required 1. approach to selfassessment of entrepreneurial ability 2. "entrepreneurial abilities index" approach to entrepreneurial ability assessment 3. global ntrepreneurship assessment of entrepreneurial ability monitor (gem) approach 4. "economic profitability" approach to entrepreneurship assessment 5. assessment approach based on solving problem situations in the form of cases american journal of business management, economics and banking volume 39 august2025 p a g e | 19 www.americanjournal.org for success in entrepreneurship is not that straightforward. nevertheless, if they engage in developing their entrepreneurial skills, becoming successful entrepreneurs becomes feasible. it's noteworthy that the remaining 10 individuals (4%) expressed no doubt in their ability to become successful entrepreneurs (morselli 2019). table 1 self-assessment of entrepreneurial abilities of young people results № state of entrepreneurial ability (according to points accumulated as a result of "yes" or "no" answers) qualitative levels of entrepreneurial ability of respondents the number of respondents specific to the qualitative level of entrepreneurial ability their share in the total participation, in % 1 0-12 points weak 10 4 2 13-16 points competent 175 70 3 17-21 points developed 65 26 total 250 100 the disadvantages of this method, in our opinion, are as follows: 1. test results may not be clear enough due to disregarding the "maybe" option between "yes" and "no" responses to the questions (moberg 2014). 2. utilizing opportunities from the entrepreneurship infrastructure in the test questions was overlooked. for instance, when asked, "do you have the ability to attract investments from friends and acquaintances for your business venture?" without considering options like "or have you sought loans from banks and utilized government subsidies?", the test could have been more comprehensive. 3. subjective factors may not accurately reflect the real state of entrepreneurial competence because each respondent provides their own individual responses to the questions without a mechanism for quality control. 4. while the test may allow for a general diagnostic assessment of individuals' entrepreneurial abilities in the context of starting a specific business or initiating their own work, it may not provide the opportunity to determine the level of their "entrepreneurial skill." 2. "entrepreneurship ability index" approach. entrepreneurial competency assessment from a quality perspective was conducted by the central economic and mathematical institute (cemi) of the russian academy of sciences through examination. s.v. terebova and p.s. pleshakov proposed the "entrepreneurial competencies index" for evaluating the entrepreneurial competency of individuals (neck 2011). this index suggests calculating the integral index, which considers the importance of each characteristic by assigning weights based on the significance of qualities exhibited by eligible youth in a 70-point system (0 points not important at all; 4 points extremely important). each question was assessed on a likert scale with a 4-point system as follows: extremely important (4 points). very important (3 points). moderately important (2 points). not important at all (1 point). in the monitoring results, the numerical ratings of the components of work potential were obtained in the form of "from zero to one", indicating the actual scores on the scale. the "entrepreneurial american journal of business management, economics and banking volume 39 august2025 p a g e | 20 www.americanjournal.org competencies index" calculated using this method reflects the real assessment of entrepreneurial competency levels, as demonstrated by the example of the khorezm region of uzbekistan (table 2). table 2 the quality characteristics of labor competency in the khorezm region of uzbekistan quality index value in 1997 index value in 2008 rating level trend line 1. communication ability 0,733 0,747 3 parallel to the time axis 2. physical health 0,682 0,729 4 increasing 3. mental health 0,699 0,756 2 increasing 4. smart potential 0,630 0,621 7 falling 5. moral level 0,775 0,769 1 falling 6. the need for success 0,612 0,660 6 increasing 7. creative potential 0,593 0,571 8 falling 8. cultural level 0,609 0,684 5 increasing according to the monitoring data in table 2, it is evident that during the years 1997-2008, there was a consistent trend towards a stable state of mental, social, and emotional well-being among the population, reflected by the highest values of labor quality indicators. the lowest value was attributed to the productivity competency index. alongside this, there is a tendency for an increase in physical and mental health, civic engagement, and the need for success. the downward trend is rational and productive, particularly pertaining to the population's mental well-being (o'connor 2013). 3. global entrepreneurship monitor approach (gem). the global entrepreneurship monitor (gem) is a scientific research project aimed at providing information on the state of entrepreneurship activity and the macroeconomic (national level) conditions for promoting entrepreneurship development. the gem project was initiated in 1997 by leading scholars from the united kingdom, the united states, finland, and ireland. institutionally, the project is supported by two major institutions in the field of entrepreneurship research babson college in the usa and london business school in the united kingdom. in 1999, the first annual scientific report was published by the participants of the project, with 10 countries involved; in 2000, it increased to 20 countries, and by 2007, 42 countries participated. currently, gem is considered the largest research project in the field of entrepreneurship in terms of the number of countries covered. the main goal of this project is to conduct a comparative analysis of the levels of entrepreneurship activity among countries. this involves assessing the "entrepreneurial activity," defined in the project as "the creation and management of new businesses," within the conceptual model of gem, which is described with the following key indicators: -potential entrepreneurs individuals who are willing and capable of starting and managing a business, utilizing their opportunities, knowledge, and experience to organize business activities. -early-stage entrepreneurs, including: nascent entrepreneurs individuals who have taken active steps toward starting a business during the past year, have full ownership in their businesses, but have not yet paid salaries or other types of remuneration for three months or more. american journal of business management, economics and banking volume 39 august2025 p a g e | 21 www.americanjournal.org owners of new business individuals who own and manage a newly created business and have been operating for more than three months but less than 42 months and have received income. -successful entrepreneur or successful business owner-manager an entrepreneur or manager of a business that has been actively operating for more than 42 months and has shown a significant level of income over time. 4. "economic profitability" approach. uzbek scientist, professor n.q.murodova believes that it is appropriate to determine the quality of the activities of small business entities, their state and level of economic profitability by quantitative measurement. this refers to the "economic benefit of enterprises" the ability to satisfy various needs at the expense of the income that the enterprise receives in return for the realization of its production and entrepreneurial potential is understood. it is recommended to calculate the level of entrepreneurial activity using the following formula: ea=ai-(fc/ai-vc)*100% (1) ea-level of entrepreneurial activity of the enterprise; ai-annual income of the enterprise; fc-fixed costs of the enterprise; vc-variable costs of the enterprise. through this methodology, as a result of determining the level of economic profitability of small business activities, their activity is evaluated. in this case, the scientist divides the income of business enterprises according to the following economic profitability: • economically helpless activity (state of poverty); • profitability at the level of interest of the owner of the enterprise, i.e. mature economic activity (private profitability); • profitability in the interests of the enterprise owner and hired workers, i.e. economically developed activity (collective benefit); • social benefit, i.e. prospective activity (social benefit); • non-profit making, i.e. carried out by means of illegal entrepreneurship. in accordance with the cases of economic usefulness classified above, the quality levels of business entities and the specific quality mark representing them are also recommended. table 3 levels of profitability and quality of small business activity rate of profitability of small business activity percentage) economic profitability of small business activity cases quality levels of small business activity: quality marks of enterprises 0-25 unstable lust economically weak business activity 26-50 self-interest economically mature activity bronze 51-75 collective benefit economically developed activity silver 76-100 social benefit a promising activity gold american journal of business management, economics and banking volume 39 august2025 p a g e | 22 www.americanjournal.org as can be seen from table 3, there are specific classifications of each achieved quality level of the performance of small business entities, which are evaluated by the relevant criteria. "economic usefulness" of entrepreneurship assessment positive aspects of the approach are to determine the level of business rating of business enterprises and to divide them into different groups, and accordingly to create an opportunity to develop a system of specific measures (kuziboev et.al 2024). 5. assessment approach based on solving problem situations in the form of cases. russian scientist e.k. klimov developed an evaluation method based on solving problem situations in the form of a case for the purpose of researching entrepreneurial activity. e.k. klimov recommends evaluating the indicator "psychological readiness for entrepreneurial activity" using the following 7 criteria: entrepreneurial motives; business goals; initiative; strategic thinking; resistance to stress; entrepreneurial intention; business resources. it is believed that it is appropriate to determine the above-mentioned criteria for determining the readiness for entrepreneurship by means of a survey based on the "situational questionnaire". this questionnaire is based on information about 19 problem situations and 4 respondents. problem situations consist of business problem questions and four possible solutions. the problem situation has the following form. "an entrepreneur wants to invest in the purchase of an enterprise. what factors do you think he should take into account to evaluate the profitability of the enterprise?" answer options: a) the profit of the last year; b) the average annual profit of the last five years; c) determined based on the amount of profit of previous years the average annual forecast profit for the next five years; g) the average annual forecast profit over the next five years, determined on the basis of the confidence that the buyer's management skills will contribute to a sharp increase in profit. conclusion in conclusion, this paper has explored methodological approaches to assessing entrepreneurial ability, with a particular emphasis on the utilization of self-assessment surveys. entrepreneurial ability, characterized by a combination of skills, traits, and behaviors, plays a pivotal role in shaping individuals' success in business endeavors. the assessment of entrepreneurial ability is a multifaceted task, requiring the integration of diverse methodologies to capture the complexities of entrepreneurial behavior. through the implementation of a self-assessment survey consisting of 20 questions, this study has provided valuable insights into individuals' self-perceived entrepreneurial abilities. the survey data analysis revealed patterns and trends in how aspiring entrepreneurs perceive their strengths and weaknesses across various dimensions of entrepreneurial endeavor. by examining factors such as risk-taking propensity, creativity, resilience, and leadership skills, the survey shed light on the diverse skill set required for entrepreneurial success. american journal of business management, economics and banking volume 39 august2025 p a g e | 23 www.americanjournal.org the findings of this study have important implications for entrepreneurship education, training, and talent development initiatives. by understanding their own strengths and weaknesses as perceived through self-assessment, aspiring entrepreneurs can tailor their learning and development efforts to enhance their entrepreneurial capabilities. furthermore, educators and practitioners can use the insights derived from self-assessment surveys to design targeted interventions aimed at fostering the growth and success of future business leaders. in conclusion, methodological approaches to assessing entrepreneurial ability, including selfassessment surveys, contribute to our understanding of the factors driving entrepreneurial success and failure. by leveraging diverse methodologies, researchers and practitioners can gain comprehensive insights into the complex dynamics of entrepreneurship and inform strategies for supporting aspiring entrepreneurs on their journey towards business success. references 1. oosterbeek, h., van praag, c.m. & ijsselstein, a. 2009. the impact of entrepreneurship education on entrepreneurship skills and motivation. european economic review, 54, 442-454. 2. pittaway, l. & edwards, c. 2012. assessment: examining practice in entrepreneurship education. education + training, 54(8), 778-800 3. souitaris, v., zerbinati, s. & al-laham, a. 2007. do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? the effect of learning, inspiration and resources. journal of business venturing, 22, 566–591. 4. jones, b. & iredale, n. 2010. enterprise education as pedagogy. education + training, 52(1), 719 5. reynolds p., autio e. 2005. global entrepreneurship monitor: data collection, design and implementation 1998–2003. small business economics 24 (3): 205–231. 6. johannisson, b. 2010. the agony of the swedish school when confronted by entrepreneurship. in skogen, k & sjövoll, j. (eds.) creativity and innovation: preconditions to entrepreneurial action, tapir academic press. 7. morselli, d. (2019). the assessment of entrepreneurial education. in: the change laboratory for teacher training in entrepreneurship education. springerbriefs in education. springer, cham. https://doi.org/10.1007/978-3-030-02571-7_2 8. moberg, kåre (2014) : assessing the impact of entrepreneurship education: from abc to phd, phd series, no. 19.2014, isbn 9788793155398, copenhagen business school (cbs), frederiksberg, https://hdl.handle.net/10398/8965 9. neck, h.m., and greene, p.g. 2011. entrepreneurship education: known worlds and new frontiers. journal of small business management, 49(1), 55-70. 10. o'connor, a. 2013. a conceptual framework for entrepreneurship education policy: meeting government and economic purposes. journal of business venturing, 28(4), 546-563. 11. kuziboev, b.; ibadullaev, e.; saidmamatov, o.; rajabov, a.; marty, p.; ruzmetov, s.; sherov, a. the role of renewable energy and human capital in reducing environmental degradation in europe and central asia: panel quantile regression and gmm approach. energies 2023, 16, 7627. https://doi.org/10.3390/en16227627. https://doi.org/10.1007/978-3-030-02571-7_2 https://hdl.handle.net/10398/8965 https://doi.org/10.3390/en16227627 american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 137 www.americanjournal.org a theoretical vision of the strategy of developing the private sector in human development in arab societies prof. ishaq yousef al-ayyash university of samarra, college of administration and economics isac.y1982@gmail.com 009647805690082 a b s t r a c t k e y w o r d s this research aims to develop a theoretical vision for the strategy of developing the private sector in human development in arab societies, and the researcher adopted the descriptive approach in analyzing the research problem. the research has three axes, the first axis dealt with the development of the private sector between (difficulties and obstacles), the second axis included the role of the private sector in developing human resources, while the strategy for developing the private sector in our societies came in the third axis. the research reached a set of conclusions and recommendations, and among the conclusions is the need to provide an appropriate and stimulating climate that helps to carry out investment activity, through a number of procedures that reflect the best economic, legal and political conditions for private sector activity. in increasing their commercial activity due to the national and expatriate workforce, and developing solutions to address these problems in order to achieve development and prosperity, which will reflect positively on development. development strategies, private sector, human development. introduction the private sector is the first partner of governments in achieving the development process and its goals, as it plays social roles that governments may not be able to perform, meaning that the relationship between the state and this sector must take a cooperative and complementary form in improving the social and economic conditions of local communities. within the framework of the interest in the private sector in our societies, there are many bodies and research centers that have called for the need to activate the role of this sector in the development of aspects of human resources and institutional resources alike. however, the cessation of thought on the phenomenon of private organizations and the questioning of them in order to shed more light on them is only an implicit indication that the role and status of private american journal of business management, economics and banking volume 15 august, 2023 p a g e | 138 www.americanjournal.org organizations have not yet reached the level desired by the development and modernization movement in our societies. in light of the multiplicity of obstacles facing the growth of the private sector on the one hand and the failures that characterize the activity of this sector on the other hand, the ability of the private sector to develop requires the development of an integrated and coordinated framework that takes into account all aspects that would affect that process, and this is what we are trying to answer through this study, whose main problem revolves around the following: what are the mechanisms and procedures of the private sector development strategy in human development? to answer this problem, the study included three axes as follows: · developing the private sector between (difficulties and obstacles). · the role of the private sector in human resource development. · the strategy of developing the private sector in our societies. first: developing the private sector: between (difficulties and obstacles). the issue of developing the private sector in any country is a very important and necessary issue, not only through its positive effects on human development, but also based on the very sensitive issues related to it, whether through obstacles and obstacles that limit the development of the private sector, or through the failures that characterize the activity of this sector. these issues must be taken into account in order to develop an appropriate strategy for the development of the private sector and activate its role in achieving both human and economic development. private sector organizations play an important role in the development and development of societies as they are considered complementary to the government sector in terms of providing services and providing support to different segments of society (1). (costanini et al., 2011, 34). the term private sector refers to a wide range of government-independent organizations (ngos), characterized mainly by humanitarian, legal and profit objectives, generally seeking to alleviate suffering, determine the interests of the poor and other vulnerable groups, protect the environment, provide basic social services, or undertake community development (abdelaziz, 2007, 12).(abu sukhaila, 2015, 76) sees it as that part of the economy owned by the business sector, from the owners of capital whose main goal is to maximize its profit, and be under the supervision and control of the public sector that works to maximize its work to achieve the maximum possible benefit for society. for more than a decade, interest in the private sector has been gradually increasing, whether at the level of studying the structures and organization of local communities after the model centered on the role of the state accounted for the largest share of sociological studies, or at the level of the growing role that international organizations and bodies began to assume for these organizations in order to involve what has become known as the third sector orprivate organizations in public sector programs as part of the strategy to reduce government bureaucracies and upgrade the role of the private sector, which was considered an indicator of increased participation and transparency in the development process, the interest in private organizations falls within a cultural discourse that has been growing continuously, in which the concepts of civil society, pluralism, the advantages of social dialogue and the importance of community practice combine to form new features, these features confirm the increasing tendency of american journal of business management, economics and banking volume 15 august, 2023 p a g e | 139 www.americanjournal.org contemporary discourse to adopt democratic principles and to raise the importance of participation in issues of public interest and not limited to eat it on the toast. before determining the role of the private sector in human development, and developing a strategy for the development of this sector, here it is necessary to shed light on the weaknesses and problems facing the organizations of this sector and work to address them in order to perform the desired function and contribute effectively to creating a state of community harmony, there are a number of important weaknesses that affect their existence and the expansion of their work, and these points are concentrated as follows: 1) the pattern of the relationship between private organizations, which is largely going according to the individual desires of those in charge of them, which is a weakness in the institutional structure faced by organizations, as the structure far from the organizational form and decision-making may allow the person in charge of domination and exclusivity, which makes the whole institution subject to his personal desires and ambitions. 2) it lies in the lack of independence of these organizations in fact, as most of the founders of the organizations or their members were affiliated with certain political parties, and even if they were independent from their parties, they still carry the same ideological ideas adopted by this or that party, and fall into the same mistakes that parties face in terms of the ability to expand the effective mass base, and work in a state of internal democracy, this sometimes leads to a state of political inindependence that reduces public turnout and produces a weakness in the effective structure of this or that organization. 3) the third weakness, and may be the most important in the effectiveness of these organizations, lies in the absence of coordination, cooperation and organization to unify efforts among them, as they are in one way or another subject to the principles of ineffective competition in the fields of work and constitute a real obstacle in the process of bringing cadres, skills, technical and administrative experts to carry out the activities of private organizations, all of this hinders their development, in addition to not presenting themselves as tributaries in the development process, as they lack the absence of strategic planning for development processes, and the lack of trust among them. and between them and the government, leading to a lack of partnership that would revitalize the role of organizations. these weaknesses disperse efforts to achieve the desired goals and weaken the expected effective role of private organizations as lobbyers for influencing public policies.. there are a number of factors that are considered as constraints that limit the development of the private sector in human development and can be divided into two types. (massoud and karim, 2011, 7): 1) financial restrictions: the interest paid by private sector organizations in order to obtain the necessary capital for their activity, which is known as (capital costs), is one of the most important elements that affect the process of financing them and then in their growth and development, based on their main role in determining the possibility of expanding investments or not. another financial constraint faced by private sector organizations is financing through borrowing from the banking sector, which is known as (lending policy), which increases the weight of the possibility of private sector organizations obtaining the necessary funding to pursue and develop their development activities. in this regard, many private sector organizations that, by virtue of their investment projects, wish to finance long-term loans due to their inability to enter the capital market due to their lack of the required conditions or high costs, find it difficult to obtain what they require because the lending policy of many american journal of business management, economics and banking volume 15 august, 2023 p a g e | 140 www.americanjournal.org banks is mainly based on short-term financing due to their need for liquidity on the one hand and to avoid the risks of non-payment on the other hand, which contributes to more of financing restrictions on the private sector, which leads to a weak pace of growth and development. in addition to this, there is another financial constraint that guides private sector organizations in our societies, which is the weak development of capital markets, as the lack of sufficient development of capital markets narrows the financing opportunities available to private sector organizations in a way that leads to poor performance in human development. 2) non-financial restrictions: there are similar to financial restrictions a number of other non-financial restrictions that negatively affect the development of the sector, government procedures and legislation that govern the activity of the private sector in its various aspects, which is known as (business climate) have a very significant impact on the status of the private sector and its performance in human development. according to the world bank, the state of the business climate is viewed from a combination of indicators that determine the ease of performing economic and social activities in each country, and they are divided between "statutory ranking indicators" and "time and cost indicators" (world bank, 2011, 11). therefore, the deterioration of the business climate through the indicators referred to has a significant impact on the development of the private sector in human development, as this leads to the alienation of investors, whether local or foreign, which limits the effectiveness of private sector organizations in human development. in addition, there is another non-financial obstacle that has a negative impact on the development of the private sector in our societies and reduce its positive impact on the development of human resources, which are income-generating activities that are not recorded in the accounts of gross domestic product, which is known as (parallel market), (dalal, 2008, 2), and the negative impact of the parallel market on the development of the private sector is evident in being an illegal competitor in economic development and human development, as it does not bear any costs, which helps to discharge its products. its services are at lower prices, unlike private sector organizations that operate in an official and legal manner, resulting in incurring several costs, the most important of which is paying taxes, which contributes to the high prices of their products and services in a way that makes them in a state of non-competitiveness, in addition to the violation of property rights by the parallel market, which limits the desire of investors to enter the market and take risks because they know in advance that there is no fair climate for competition in a way that limits the expansion of the official private sector presence in human development. another obstacle is the lack of openness to the world by the state with regard to the economy and development under the pretext of protecting the local economy, and this negatively affects the development of the local private sector due to its deprivation, i.e. the absence of experience and advanced technology that characterizes the foreign private sector. in addition, the absence of the foreign private sector means the absence of competition is mainly related to the extent of the development of the competition system in economic life, as it is the main motivation for organizations to develop through the processes of creativity and innovation in various aspects, which reflects positively on their performance in human development, and on this basis, it is necessary to reduce monopoly operations and work to liberalize trade in a way that enables the expansion of the american journal of business management, economics and banking volume 15 august, 2023 p a g e | 141 www.americanjournal.org market and then open the way for competition and what is reflected in the high efficiency in economic and development performance of the private sector. second: the role of the private sector in human development. human development is concerned with providing the material and moral requirements of the human being, but this will only be achieved through economic growth, which is concerned with "the increase in the country's gdp during a certain period of time", so human development is the goal and economic growth is the means to achieve it (wajih, 2021, 34). the human development, expresses those activities that raise the capabilities and skills of the human role for humanitarian purposes, that is, in order to increase its capabilities to face the difficulties of life, it looks at the human race as a human being and thus focuses efforts to develop it for itself, , where efforts are evaluated within the framework of human development with humanitarian indicators indicating the extent of improving human life and well-being, such as the level of education, standard of living, unemployment rate... etc. (wahiba, 2011, 23). the economic and political transformations that followed the end of the cold war and the disintegration of the socialist system, and the accompanying developments related to globalization and its economic, political and scientific manifestations, had to critically reconsider the concept of development, so the concept of continuous sustainable development (human development sustanable), which has been focused on human development reports since the early nineties of this century, to form a complex concept that takes into account previous development experiences in both theoretical parts. and applied. however, this does not mean that the concept of sustainable human development is final and complete and involves solutions to complex development problems, the forms of (poor growth), which many societies are witnessing today, are numerous, including: (ruthless growth, growth without a future, mute growth, growth without roots, and finally growth without jobs), perhaps the crisis witnessed by southeast asian countries since mid-1997 and lost 30 50 • of the values of their currencies, which extended to include russia and venezuela, perhaps draw serious question marks on the opportunities and future of development in the era of globalization (globalisation), until the emergence of a more comprehensive concept of socio-economic development that takes into account the reflection of development policies on the structures of society and its economic activities, leading to the concept of sustainable development adopted by the united nations development program (undp) in its annual reports on the reality of development in the world. the human development report for the year 1996 examines the nature and degree of the relationship between economic growth and human development, and in an unprecedented gesture, the concept of human development is accurately defined as expanding people's options by providing them with opportunities in the fields of work, income, health, education and political rights that intensify in the concept of american journal of business management, economics and banking volume 15 august, 2023 p a g e | 142 www.americanjournal.org participation, by proposing the index (human development index)), a guide to measuring human development, i.e. linking economic growth to a fundamental goal, which is to improve people's quality of life, ensure a safer distribution of income and protect the environment. (abu halaweh, 2014, 5). the report emphasizes the dialectical link between economic growth and human development, so that growth is a means and development is an end, in this context the report emphasizes the importance of participation between governments and private sector organizations in issues of managing this process. the changes taking place in the private sector in many arab countries are an indicator of a number of social, economic, and, to a lesser extent, political transformations and changes that have begun to take place in these countries, and these changes appear in part as an impact of global trends that have highlighted the rising weight of the third sector and the importance of private organizations in dealing with the problems of population, the environment, disadvantaged and less fortunate groups, in addition to human rights, women and other issues. but what are the factors and reasons that contributed to changing the position of the private sector in our societies, and what is the size of the new role of this sector? after careful analysis of the social and economic factors underlying this transformation, there are two groups of factors: 1) the development policies adopted by countries in our societies, including their failures and successes, and the gaps and shortcomings they have revealed. 2) changes in social structures and population structure associated with new demands and needs resulting from these developments. the fiscal and monetary policies adopted by the majority of countries in our societies to confront inflation and budget deficits through market liberalization and the trend towards privatization and structural economic reforms have resulted in a decrease in government spending on public services in the health, education and social welfare sectors, which has led to the emergence of the importance of the role of the private sector in covering and satisfying part of the demands of the population, which is natural and necessary in that it complements the role of the state on the one hand, in addition to the growing role of the private sector on the other. in parallel with the economic and social policies that resulted in the decline of the role of governments in spending on public services and social welfare, the population in these countries has tended to increase continuously, which is considered one of the highest rates in the world, this means that there are new population needs and demands that governments cannot satisfy, in addition to the exceptional circumstances that some of our societies have witnessed due to wars and environmental and natural disasters. in which an important role has emerged for private sector organizations in meeting the needs american journal of business management, economics and banking volume 15 august, 2023 p a g e | 143 www.americanjournal.org of the population, as they responded with high flexibility to the problems and changes witnessed by these communities. a comparison between countries in our societies that have pursued a policy of planned and centralized economy and countries that have adopted economic policies based on a market economy and economic pluralism shows that the first group of countries with a command economy, although they were able to provide economic infrastructure (industrial and agricultural projects, roads and services), but they did not succeed in investing them with the standards of economic efficiency, have reached a crisis of blockage of horizon and a slowdown in actual growth due to bureaucracy, red tape, corruption, restriction of initiative and curb investments. this calls for economic reforms, restructuring, privatization and the revitalization of private initiatives. (sukkar, 2000, 2). as for the second group, most of its countries have suffered from the problem of exacerbating the misdistribution of wealth and income as a result of privatization measures, financial reforms and pressure from the imf and the world bank, which has exacerbated the phenomenon of unemployment and the high rate of poverty, which requires a review of the negative social effects of these development policies and work to find a difficult balance between economic liberalization policies and the development needs of society and the requirements of social justice, noting the differences between these countries within the previous two groups. hence, it is clear that the interest in private sector organizations as a component of civil society in developing countries is inseparable from thinking about the two central issues facing these societies: (the issue of development and the democratic question). third: the strategy for the development of the private sector in our societies. the process of developing a specific strategy aimed at developing the private sector in human development through a number of mechanisms and procedures must start first of all from taking into account the difficulties and obstacles facing the process of development of the private sector, which we referred to in the first axis of this study, which allows the development of a sound and effective perception of the mechanisms that must be provided to develop the position of the private sector and its performance in human development. on this basis, a number of mechanisms that constitute the optimal strategy for the development of the private sector can be highlighted in their interdependence, as follows. (karim and massoud, 2011, 15): 1) providing financing to achieve investments in the private sector: what any strategy aimed at developing the private sector requires is to work on developing mechanisms that allow the provision of financing, which is the main driver of private sector activity, so that its availability, both in terms of size and type, provides more opportunities for investments. the process of providing the necessary financing for private sector activity is achieved through the following: american journal of business management, economics and banking volume 15 august, 2023 p a g e | 144 www.americanjournal.org a) mobilizing savings: it is imperative for the banking sector to develop the process of mobilizing savings in a way that allows providing sufficient financing capacity for economic activities, as this requires first of all developing the structure of the banking sector by opening the way for competition between banks, whether local or foreign, in a way that reflects positively on their banking services, and pushes for better performance in the process of bringing savings, which would positively return to the financing process organizations in general and private sector organizations in particular. b) helping small and new enterprises in the market: small and new projects in human development suffer from the difficulty of obtaining financing, whether due to the high costs of loans or their inability to enter the capital market, and this requires flexibility in financing procedures for small projects by banks, which are the only source of them to obtain financing, as it is necessary to work to postpone payment periods or reduce interest to ensure that they obtain sufficient liquidity to develop their investment and production activities, especially since they do not start to achieve profits except years after the beginning of activity. (inter american development bank; private sector development strategy, 2004, 23). c) capital markets development the capital markets play a major role in financing investment projects increases the importance of interest in developing them and activating their position in the process of financing the economy, as they contribute to providing financing, whether it is local financing or external financing, debt financing (bonds) or ownership financing (shares), in addition to playing a major role in the development of the performance of private organizations dealing in them as they emerge as a reflective mirror of human development, as each organization requesting funding in it must be distinguished by the performance of good economic and financial and comfortable so that it can dispose of its securities offered for circulation, whether bonds or shares, and obtain the necessary financing, and this is in the interest of developing the performance of the private sector. therefore, it is necessary to work on developing capital markets through the development of appropriate texts and legislation regulating their activities, limiting the presence of public sector organizations by privatizing them, facilitating the procedures for private sector organizations to enter the capital markets, in addition to setting incentives that would attract external capital that contributes to the development of trading operations in a way that increases their depth and efficiency, which will reflect positively on the mechanism of financing the private sector in the local economy. (10) caribbean development bank; on a new private sector development strategy, working paper , 29.) 18. d) public-private partnership: the partnership between the public sector and the private sector enters into the modern trends to develop the private sector and enhance its position in human development, as the number of countries that have chosen to move towards partnership between their public and private sectors in order to open another area for the expansion of activity for the private sector, which is the infrastructure sector and related services, which is usually unique to the state through its public organizations. some experience indicates that economic infrastructure projects are the most attractive for public-private partnership compared to social infrastructure projects (health and education) for the following reasons: american journal of business management, economics and banking volume 15 august, 2023 p a g e | 145 www.americanjournal.org ü economic infrastructure projects enjoy high profitability rates that increase the attractiveness of the private sector ü attractiveness of usage fees more in economic infrastructure projects. ü infrastructure projects enjoy larger markets compared to social infrastructure projects. in addition to the fact that the partnership between the public and private sectors provides new markets for the development of private sector activity and the resulting positive effects on economic growth rates and human development, it allows avoiding the postponement or cancellation of the construction of these infrastructures if the state, which is in charge of building it, is not able to provide its financial allocations, and the negative effects that this may have on the economy and society due to the extreme importance that infrastructure enjoys in the development of human development. the partnership between the public and private sectors would ease spending constraints and budget deficits on the one hand, and on the other hand, it could save infrastructure expenditures and direct them towards other uses in need of financing, which the state would pay and bear its financing, which would positively benefit the economy and society. (hemming et al., 2007, 8). 2) providing a conducive and stimulating business climate: one of the most important mechanisms that must be achieved as a main condition in building a strategy for the development of the private sector is related to the need to provide the best conditions under which the private sector is active in economic life, which constitutes the so-called business climate, as the arab investment guarantee corporation defines it as the overall legal, economic, social and political conditions in which the environment in which investment activity takes place, where the components of this environment change and overlap among themselves to a large extent, which makes it difficult to highlight their effects are individual. (benhine, 2008, 2). on this basis, it is necessary to work to provide an environment that helps and stimulates activity, based on the following elements: a) consultation between the private and public sectors: as the state plays a major role in providing the appropriate climate and conducive to growth and development in performance through a set of policies that it approves in this context, whether development policies or economic policies, legislation and legal provisions that reflect the atmosphere surrounding the activity of the private sector in economic life, but this does not give it the ability to clearly and properly visualize how to build and provide the appropriate environment and stimulate performance except with the participation of the private sector, which is concerned with these procedures and mechanisms, as the procedure consultations between government bodies concerned with providing an appropriate climate through the policies and procedures set on the one hand and the private sector concerned with activity and interaction in economic life in light of the procedures and mechanisms approved by government bodies that would reach the construction of an appropriate and american journal of business management, economics and banking volume 15 august, 2023 p a g e | 146 www.americanjournal.org stimulating activity environment for initiative, which will reflect positively on the status and role of the private sector in human development. b) develop the appropriate legislative and legal framework: the legislative and legal framework contributes to creating initiative and stimulating human development through the confidence and tranquility it provides in the economy and society, as it affects productive or service organizations directly through its organizational and administrative aspects, or indirectly through its effects on various sectors that are closely related to the activity of the private sector such as the banking sector or the insurance sector, and therefore it is necessary to work on developing the appropriate legal and legislative framework for the performance of the private sector, which it is necessary to keep pace with economic developments locally and abroad in order to avoid any imbalances or negative repercussions. with regard to the organization and functioning of the private sector's activity, we find procedures for starting the activity and establishing the economic unit, procedures for obtaining licenses, laws related to non-payment, laws related to the conclusion of contracts, which must be simplified and facilitate their performance in order to avoid further obstacles in light of the growing phenomenon of the parallel market in global economies, as this would create a system of competition on the one hand and on the other hand facilitate entry into the market for small enterprises in a way that reflects positively on the activity of the private sector. as for the aspect related to the nature and size of the private sector's activity, it is related to legislation and provisions related to the process of entry and exit of capital and the benefits resulting from it, as well as the tax burdens borne by the private sector and laws related to export and import, as it is necessary to work to provide a legal and legislative environment that stimulates risk and expansion of activity based on the confidence and initiative provided by those legislative and legal texts, by increasing the volume of private investments, whether local or foreign, and it is necessary to provide advantages and reducing the burdens and costs on capital to ensure greater attraction that would reflect positively on the performance and development of the private sector. c) political stability: political stability is a strong supporter of the presence of the private sector in human development and its development through its great role in attracting private investments, whether local or foreign, as it reflects higher confidence and greater assurance regarding the possibility of achieving gains in human development, as political instability increases the state of uncertainty and uncertainty regarding economic conditions, which limits the initiative and desire of the private sector to invest and expand. regarding the relationship between political stability and private investment, a study by r.s.) basi) that political stability affects investment decision-making by 63%, as indicated by the arab investment guarantee corporation in its report on the stimulating elements of private investment in a number of arab countries, that the availability of stimulating elements for private investment in a country coincides with its enjoyment of political and economic stability as a key factor in the development of private investment, (shoaib and moulay, 2009, 142). american journal of business management, economics and banking volume 15 august, 2023 p a g e | 147 www.americanjournal.org d) human resources development: human resource development is considered as an investment process for human capital, as it is defined as the process of developing the skills, capabilities and knowledge of the workforce through training and development processes, which contributes to raising its contribution to the production process to the maximum extent possible. (wahiba, 2011, 12). the development and development of human resources contributes to increasing efficiency in the performance of the private sector, as this allows the development of management systems and management methods and enables the development of renewal and innovation processes that would create a continuous dynamic in the investment and production processes, allowing the development of the position of the private sector and enhancing its contribution to human development, unlike if human resources are not characterized by development, this will reflect negatively on the development of the private sector, which in light of the extension of globalization and the intensification of competition, it will not have it is possible to develop and expand its activities due to the weak development of human resources at its level and their failure to keep pace with modern trends in organization and innovation. there is a vivid example in the development of human resources to support and develop the private sector in the kingdom of saudi arabia, which is (the experience of the saudi human resources development fund), the establishment of this fund for human resource development with its independent legal personality administratively and financially, came as a result of a clear vision of a strategic saudi goal that poses an unprecedented challenge to reach, which is the localization of jobs in the private sector, so its establishment came as one of the effective mechanisms to contribute to the provision of qualified saudi cadres with science and well-trained national youth of both sexes so that it is in the level of acceptance of this challenge and achieves reaching the strategic goal that will bring social, security, and economic benefits to the country, by enabling saudi youth to possess the knowledge and skills necessary to fill jobs in the private sector, which will result in positive effects on the national economy and human development. the experience of the human resources development fund in the kingdom of saudi arabia is a worthwhile experience, as the fund was entrusted with essential tasks related to everything that concerns applicants in the private sector, and it also found a strong support from the state and provided it with all the aids of work, especially financing. (al-ahdath newspaper). by putting these experiences in mind to transform into a knowledge-based economic society in the twenty-first century using high technology and information and to complement the leading role played by the national economy through the development of human resources by qualifying and training them to meet the functional needs in the labor market of the national workforce, by developing a comprehensive strategy to expand the provision of services to the private sector to achieve the goals of developing this sector and increasing the effectiveness of the human development process. conclusions and recommendations: similar to its contribution to economic growth, the private sector plays a major role in reducing poverty based on the jobs it provides and high incomes, as its development contributes to the participation of the poor in economic growth and thus their benefit from jobs that provide them with incomes that enable them to improve their living standards and get them out of poverty, and this in itself is considered human development. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 148 www.americanjournal.org on this basis, the development of the private sector is a very important issue, both from its economic and social side, but the obstacles and failures that limit the development of the private sector require the development of an optimal strategy that reflects the correct understanding and perception of the mechanism of developing the private sector, which must be based on the following axes, which collectively constitute the main framework on which any strategy must be based in the process of developing the private sector in human development, namely: 1) the need to provide an appropriate and stimulating environment that helps to carry out investment activity, through a number of measures that reflect the best economic, legal and political conditions for private sector activity. ü review legislation and laws regulating the labor market and consider the issues and aspirations of the private sector in its various sectors in this regard. ü and the need to create a partnership between the public and private sectors and reduce the differences between them, which reflects a kind of integration in human development that serves both sectors, and establishes a dynamic growth for the private sector, which is thus able to obtain wider opportunities to expand its activity and thus enhance its position and performance for the benefit of human development. propose policies, programs and means to develop recruitment and training systems and assist the private sector to achieve the requirements and policies of appointment and training to serve economic development plans as a means of developing this sector to provide more effective services through the implementation of these policies and linking them to the goals, policy and needs of the national economy within the framework of human development plans. 2) providing sufficient financing to achieve investments, whether through loans to develop the banking sector, or through the development of russian capital markets, which are a major catalyst for the development of the performance of the private sector. 3) urging the private sector to grant job opportunities and actively participate in activating the role of people with special needs in order to benefit from their energies and integrate them into the labor market. 4) discuss the problems that hinder private sector organizations in increasing their commercial activity due to the national and expatriate workforce and develop solutions to address these problems to achieve development and prosperity, which will reflect positively on human development. references 1) abu sukhaila, kamal jamal rashid, (2015), the role of the private sector in economic development from the perspective of positive and islamic economics: a comparative and econometric study on the palestinian economy, phd thesis, islamic university of gaza. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 149 www.americanjournal.org 2) kostanini, athamneh, et al. (2011) "an analytical survey of civil society organizations in the occupied palestinian territory". 3) abdelaziz, huda (2007) article entitled "private organizations", electronic version: http://www.arabvolunteering.org/corner/avt2723.html 4) boudkhekh karim, boudkakh messaoud, (2011), the role of the private sector in raising the competitiveness of the algerian economy and preparation", faculty of economic, commercial and management sciences. 5) world bank: doing business (2011): supporting employers, 2010, pp. 1-11 6) boudal ali: the problem of the hidden economy in algeria: causes and solutions, journal of human research, no. 37, 2008, p. 2 7) siraj wahiba, (2011), human resources development strategy as an entry point to improve sustainable performance in the economic institution, master thesis, ferhat abbas sétif university, faculty of economics, commercial and management sciences, algeria. 8) karim abu halaweh, (2014): societal transformations and the role of private organizations in manifestations, dar al-ahali, damascus. 9) nabil sukkar, (2000): economic reform in syria, lecture delivered at the thirteenth economic tuesday symposium held by the association of economic sciences in syria, damascus. 10) richard hemming et al., (2007): public investment and public-private partnership, economic issues, imf. 11) naji ben hussein, (2008): an analytical study of the investment climate in algeria, third international conference on foreign investment and knowledge management, kuwait. 12) bounoua chouaib, moulay lakhdar, (2009): the role of the private sector in economic development in developing countries, researcher magazine, no. 7. 13) wajih, mustafa nofal, (2021), quantitative measurement of human development indicators and their impact on economic growth, unpublished master's thesis, tikrit university, college of administration and economics. 14) abdel fadil, mahmoud, (2000), privatization and the requirements of development, distribution and social justice in our societies, commentary on yassin saeed noman's paper, the fourth annual conference of the arab center for strategic studies, damascus. 15) international experiences in the field of human resource development al-ahdath newspaper on 0507-2012 http://www.sudaress.com/alahdath/21439 16) inter american development bank; private sector development strategy, 2004, p20. http://idbdocs.iadb.org/wsdocs/getdocument.aspx?docnum=352366 17) caribbean development bank; on a new private sector development strategy, working paper pp5,7. http://www.caribank.org/titanweb/cdb/webcms.nsf/alldoc/b514c. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 174 www.americanjournal.org modern corporate management system scientific approaches to theoretical basis khabibullaeva shirinkhan tahir qizi doctoral student of the higher school of business and entrepreneurship under the cabinet of ministers of the republic of uzbekistan a b s t r a c t k e y w o r d s this article analyzes the understanding of the management system at corporate enterprises, the views of economists on this issue, reflects the principles of development of corporate governance, ways of implementation, as well as scientifically based conclusions on this issue. corporate enterprises, corporate governance, rule, standard, guideline, principle, risk, sustainable, culture, stakeholder, principle, efficiency. introduction in the republic of uzbekistan, after the adoption of the law "on the protection of joint-stock companies and shareholders' rights" and the amendments and additions made to date, and in the conditions of globalization of the world economy, the transition to modern standards and methods of conducting business activities and managing joint-stock companies is being carried out rapidly. issues such as the economic aspects of introducing modern standards and methods of corporate management, the formation of an effective system of management of joint-stock companies, the principles of management, and the factors affecting its introduction are currently relevant. today, for the development of corporate governance, its legal foundations are being improved, in particular, according to the decree of the president of the republic of uzbekistan dated january 28, 2022 no. pf-60 "on the development strategy of the new uzbekistan for 2022-2026", "improving the financial and economic efficiency of companies, in order to optimize corporate management, to introduce automation of production and management processes (erp) systems, to allow the purchase of state securities by non-residents, to increase liquidity in the market of corporate securities, and to attract foreign investors and international financial institutions to privatization processes in enterprises with a state stake. the definition of tasks means that it is relevant to organize the assessment of corporate governance. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 175 www.americanjournal.org analysis of literature the origin and development of corporate governance can be divided into several stages: 1. in history, in 1555, the first london-moscow trading company was established in london. a council with representatives from both sides was established in the company, and this council mainly dealt with general issues of company management. 2. the second period was 1600, when the ost-ind (east india company) company was externalized, and by 1612, a board of directors consisting of 24 members and 10 committees were established under this board. as a result, for the firsttime ownership and management duties were separated. in this regard, in 1776, adam smith in his work "research into the causes and nature of the wealth of nations" states that: "abandoned property creates problems for management", that is, the idea that it is a negative mechanism for controlling management and managers is of great importance. 3. the third period was also in the netherlands, the dutch east india trading company, where for the first time the owners were excluded from the processes of management and control of their property or the function of the owner. this led to the creation of a board of directors to solve this problem. the composition of the board of directors consists of 17 people, members from 6 states of the netherlands. legal documents have been adopted in various countries regarding the legal development of the activities of these companies. for the first time in 1844, the law on joint-stock companies was adopted. in the legislation, obligations in the form of new responsibility of ownership were introduced. in addition, in 1931, a. burley and g. minzlar published the book "the modern corporation and the private owner" (usa). it was the first time that ownership duties were clearly distinguished from control duties. in the usa, in 1933-1934, the securities act was passed, which regulated the stock market. at this stage, the act "on securities and exchanges" (1934) made it possible to provide information openly, and this year, a commission was created to oversee the laws and activities of the securities market and exchanges. in 1968, it was the first in the countries of the current european union to adopt the law on companies. at the beginning of the 1990s in great britain, the business empire was in crisis. controversies arose in great britain: a number of companies (polly peck, bcci, maxwell) showed that they were engaged in defrauding shareholders and that corporate governance in practice should be improved to protect investors. as a result, the cadbury committee published the first code of corporate governance in 1992. (great britain). since 1993, companies listed on the uk stock exchange have started reporting on how they are complying with the code. analysis and results the periods of development of corporate management in uzbekistan were different and were formed as follows: recognizing the listed four stages of expropriation and privatization of property, which have become important in the formation of the corporate governance system in uzbekistan (table 1), the point of view is put forward that this decree, which gave the opportunity to develop corporate management relations in a new context, initiated a decisive stage in the development of the corporate management system. one of the principles of modern management is the principle of periodic reorganization of management and production structure in enterprises. practice shows that it is very important to american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 176 www.americanjournal.org introduce news into management in the organization. such reorganization is required to be carried out every 2-3 years, and in current conditions even faster, 1-2 years or continuously. enterprises that fail to introduce innovations in management lose their reputation, are forced to give up their positions in the market to stronger competitors. there is no single definition of "corporate governance". according to the definition of the world bank, corporate governance is understood as a combination of legislation, norms and appropriate practices of the private sector, which enable the company to attract financial and human resources, conduct effective activities, and ultimately, its shareholders, while respecting the interests of shareholders, other interested parties and society. ensures its existence by increasing its long-term economic value. corporate management is distinguished as the main type, as an object of management, it is considered to have its own characteristics, management is carried out for the benefit of shareholders and is aimed at ensuring the development of corporations, taking into account the rights of shareholders, and developing shareholder relations based on the strategy of the corporation. as a result of such management, a corporate culture is created and a complex of principles, customs and procedures for their implementation is formed. we consider it permissible to quote the opinions of several researchers-scientists in revealing the essence of the concept of "corporate management". according to some scientists, "corporate management is the interaction of owners and other interested parties related to the assessment and control of the enterprise's activities." in this definition, the task of corporate governance is limited only to the assessment and control of the enterprise's activities. management principles, goals and tasks of the enterprise are not provided. the scientists of our country have also tried to explain the term "corporate management", among which the following definition is noteworthy: "corporate management is a strategically important strategy aimed at the formation of the corporation's capital by the owners of the corporation, its more effective use for the purpose of profit, and the fair distribution of the received income among all participants of corporate relations. is a conscious, direct participation in determining, defining and providing a permanent and real influence on decision-making" . emphasizing the scientific basis of the definition, it can be noted that it does not fully take into account the specific aspects of the business environment of uzbekistan. according to another group of authors, the concept of "corporate management" is closely related to the concept of "corporation", but it is not quite correct to understand corporate governance as only the management of corporations. currently, the term "corporate management" is used in a relatively broad sense, and refers to management with a high level of organization and specificity of the enterprise's activities. the concept of "corporate governance" is still controversial for many in terms of its essence. without a clear definition of this concept, experts may continue to debate the importance of corporate governance. "corporate management is a system of relations between the managers and owners of the enterprise related to ensuring the efficiency of the enterprise and protecting the interests of the owners and other participants." here too, having a certain legal basis, controlling economic activity, providing information and other elements of corporate management were not taken into account. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 177 www.americanjournal.org the effectiveness of joint-stock companies depends on their management strategy and correctly defined business goals. therefore, he expressed the opinion that the effectiveness of corporate management is also considered an important indicator, and it is a combination of three groups of indicators that determine the effectiveness of corporate management. the concept of "corporate management" includes the field of scientific and practical knowledge and the field of practical activity related to the organization and regulation of the activities of large enterprises in the form of a corporation. table 1 corporate management in the republic of uzbekistan periods of system formation stages intervals naming symbols results first period from 1990 to 1996 reform of property relations and formation period of corporate management relations the legal foundations of property relations were formed and the first jointstock companies, small and private enterprises were created theory of corporate management researches were carried out to create the foundations. the practice of corporate governance ensured the creation of elements of corporate governance second period from 1996 to 2015 a corporate management system was created and there was a period of its improvement adoption of the law of the republic of uzbekistan "on the protection of jointstock companies and shareholders' rights" decree of the president of the republic of uzbekistan dated january 24, 2003 "on measures to radically increase the share and importance of the private sector in the economy of uzbekistan" and subsequent regulatory documents the idea of corporate management appeared in society, the class of owners expanded, and the importance of corporate structures in business development increased. the state's efforts to improve the corporate governance system have increased: joint stock companies have been enlarged, the powers of the supervisory board have been increased, corporate consultant, auditor service institutes have been introduced, etc. the third period 2015-present introduction of modern standards and methods of corporate management improvement of corporate governance created the ground for living. introduction of modern standards and methods of corporate management, adoption of the code, introduction of independent members to the supervisory board, etc. writes another author. in this definition, corporate governance refers to corporations and other forms of large enterprises. but corporate governance should also include management of small businesses and private enterprises. in addition, it can be seen that the problem of corporate management is covered in more detail and more broadly in the scientific research of leading scientists. corporate management is a set of actions carried out to achieve the goal of the enterprise based on the current norms protecting the rights of the entities that are part of the corporate property form, as well as certain principles of management. "the concept of "corporate management" includes the field of scientific and practical knowledge and the field of practical activity related to the organization and regulation of the activities of large enterprises in the form of a corporation," writes another author. from the point of view of management psychology, corporate governance is also viewed as a management system aimed at shaping corporate culture. that is, it includes a set of general traditions and moral principles of management. in the principles of corporate governance of the organization for economic cooperation and development, the concept of "corporate governance" is defined as a complex of relations between the company's administration, its management, shareholders and other interested parties. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 178 www.americanjournal.org according to other definitions, corporate governance is: a system of mutual relations between company managers and owners (shareholders) on issues of ensuring the efficiency of the company's activities and protecting the interests of owners and other interested parties (employees of the company, creditors, partner enterprises); -all laws, norms, regulations, actions and procedures aimed at solving the problems caused by the direct removal of corporate property from the control of the owners; a set of organizational, legal and economic activities that bring together the interests of the main stakeholders in organizing the effective management of the company. in addition, in our country, on december 31, 2015, the "corporate management code" adopted by the working commission for improving the corporate management system in uzbekistan was adopted, and the code also defines corporate management as follows: corporate management is the executive body of a joint-stock company (jsc), its supervisory board, shareholders. , representatives of the labor team and other interested parties, including creditors, in order to achieve a balance of interests, it is a system of mutual relations aimed at effective organization of jsc activities, modernization, technical and technological rearmament of production capacities. in our opinion, using the definitions given above, the meaning of the concept of "corporate management" can be revealed as follows: corporate management is aimed at ensuring and protecting the rights, interests and equality of shareholders, investors and all subjects (shareholders) interested in the activities of a joint-stock company. it is understood as a set or sum of actions aimed at obtaining maximum benefit by performing the task and function set before it. so, to conclude, the essence of corporate governance is to provide shareholders with the opportunity to effectively control and monitor management activities in order to increase the value of the enterprise, the legal basis for the introduction of internal control management methods and external legal and regulatory mechanisms, as well as the modern standards of corporate governance based on world experience. therefore, the essence of corporate governance is manifested in giving shareholders the opportunity to effectively control and monitor management activities in order to increase the value of the enterprise. this form of control implies internal management methods and external legal and regulatory mechanisms. shareholders want to know clearly the level of responsibility of company officials for the results achieved. investors are more interested in being able to influence important decisions. in our view, corporate relations includes all laws, rules, regulations, measures and procedures aimed at solving the problems caused by the removal of corporate property from the direct control of the owners. with their help, organizational, legal and economic activities are carried out to effectively manage the enterprise, to unite the interests of the main interested parties. therefore, based on the definition we gave above, the environment in which corporate governance is implemented is also important. in the process of forming a corporate environment, business entities of various forms and various individuals are involved (figure 1). as can be seen from the given picture, the role of the external and corporate environment in the development of the joint-stock company is very large. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 179 www.americanjournal.org figure 1. scheme of the corporate environment that ensures the development of joint-stock companies. conclusions and suggestions thus, taking into account the current state of introducing modern standards of corporate management and corporate relations in joint-stock companies, it is possible to define the following as the primary tasks of improving corporate governance and management in enterprises: in-depth understanding of the essence and possibilities of corporate law by members of the supervisory board, managers and shareholders themselves; development and adoption of a complete package of regulatory documents regulating the management activities of direct joint-stock enterprises; involving a wide range of shareholders in the conscious management of the work of joint-stock companies at the highest level; ensuring the maximum openness and transparency of the activities of enterprises for shareholders and investors; to increase the level of interaction between the upper and executive bodies of the management of joint-stock companies and to develop ways to introduce modern standards and methods of corporate management. references 1.ўзбекистон республикасининг “акциядорлик жамиятлари ва акциядорларнинг хуқуқларини химоя килиш тўғрисида”ги қонуни, 1996 йил 26 апрель (янги таҳрири, 20 март 2019 й № ўрқ 531). 2.ўзбекистон республикаси президентининг 2022 йил 28 январдаги “2022 — 2026 йилларга мўлжалланган янги ўзбекистоннинг тараққиёт стратегияси тўғрисида”ги пф-60-сон фармони. society local goods suppliers external environmen t servants joint stock companies shareholder and others истъемoлчилaр corporate environment american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 180 www.americanjournal.org 3.ўзбекистон республикаси президентининг 2022 йил 8 апрелдаги “тадбиркорлик муҳитини яхшилаш ва хусусий секторни ривожлантириш орқали барқарор иқтисодий ўсиш учун шартшароитлар яратиш борасидаги навбатдаги ислоҳотлар тўғрисида” пф-101-сонли фармон. 4.oecd corporate governance factbook 2021. https://www. oecd. org/corporate/ corporategovernance-factbook-chapter-4.pdf. 5.berle a., means g. the modern corporation and private property – new york: macmillan, 1932. – 478 p; eells r.s.f. the meaning of modern business: an introduction to the philosophy of large corporate enterprise. – new york: columbia university press, 1960. – 427 p. 6.электронно-цифровое общество: плюсы и минусы эпохи сетевого интеллекта / дон тапскотт; пер. с англ. и. дубинского; под ред. с. писарева. м.: рефл-бук, 1999. 403 с. 7.lane n. advancing the digital economy into the 21st century // information systems frontiers. 1999. vol. 1, no. 3. р. 317-320. 8.суюнов д.х. “корпоратив бошқарувнинг замонавий халқаро стандартлари ва усулларини жорий қилиш”. “халқаро молия ва ҳисоб” илмий журнали. № 3, июнь, 2021 йил. issn: 21811016. 9.brynjolfsson e., kahin b. introduction. understanding the digital economy. cambridge: mit press, 2000. р. 1-10. 10.mesenbourg t. l. measuring the digital economy. u.s. bureau of the census. url: http://www.census.gov/content/dam/census/library/working-papers/2001/econ/digitalecon.pdf. 11.д.х. суюнов корпоратив бошқарув механизми: муаммо ва ечимлар. монография т.: академия, 2007. 12. д.х. суюнов ва бошқалар. электрон тижорат. дарслик. -т.: 2023.-298 бет. 13. suyunov d.h theoretical principles of improving the modern corporate control system in joint stock companies. international journal of economic perspectives,16(11), november 2022. 90-97. retrieve.from. 2022 by the author(s). issn: 1307-1637. impact factor: 5.865. https://www/ american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 142 www.americanjournal.org the great hasan basri who shook the world kadamova munisa arslonbekovna he is a student of the faculty of philology and history of the urganch state pedagogical institute, specializing in the spiritual foundations of the national idea and legal education qadamovamunisa@gmail.uz. scientific supervisor: shahlo samanova a b s t r a c t k e y w o r d s this article is about hasan basri, one of the great people who left an indelible mark in history. the life path of this person, the hardships he went through, how knowledgeable, philosopher, and wise he was. it is said that he devoted himself, that he did not spend even a single second of his life in vain. in order to return our "modern youth" who have gone to the internet and social networks and spend time away from real life in virtual life to real life, to warn them not to spend their time in vain activities, to introduce them to the intellectuals we know and don't know in history, how many of them reveals the meaning that he must grow up to be a generation worthy of his ancestors. basra, ibn hajjaj, piety, wisdom, hilm, true charity, forgiveness, jafari sadiq, jabir ibn zayd, umar ibn khattab. introduction introduction. nowadays, instead of the feelings of interest in books or reading books with interest, love of books, enjoyment of various knowledge, there are games and videos on social networks and various entertainment programs. not only in the mind of our youth but also in their real life. however, as time goes by, they still have a lot of work to do, how much they studied science in the past, and we are a generation that lives up to our ancestors. the questions about whether or not they are good enough did not torment them, they stopped trying to find answers to these questions. now we can't bear to read books with excuses such as "the age of information", "the age of technology", "lack of time". a simple example is that we can memorize information that is not useful to us in the hereafter, that only makes us fat, that is useless, that only steals our time. we neither find time nor spend time to learn wisdom. but we do not have the opportunity to study our very rich history and the heritage of our ancestors. our will is not enough. man does not come to this world to eat and drink or to gain wealth, to fatten his ego, or at least to dress well, to compete with others, or to spend his life using opportunities in american journal of business management, economics and banking volume 20 january, 2024 p a g e | 143 www.americanjournal.org virtual life. i think that he comes to learn, to leave it as a rich heritage for generations, to reach the level of a perfect human being, to do good righteous deeds, to help people, to broaden his outlook and become a mature person. for example, in the muslim world, our ancestor ibn rushd did not study for two days during his life. he also died when his father died and the latter married. another example of this is that he did not have a reason to study during various testing times. there were no people who stopped. even if there were, there were few. umra ibn zubair did not read a book for a day in his life, that is, when he fell ill and had his leg amputated, he could not read a book because of the pain.[ 1 ] when i read these and compared them to the present time, for some reason i wanted to laugh, maybe it was because of great surprise or because i was ashamed of our laziness. i don't know what else we need if there is peace, the trust given by our parents, and the perseverance that our teachers always encourage. main part: hasan basri is a famous sage. his birth and childhood. his full name, known as hasan basri, was abu sa'id hasan ibn abul hasan ibn mutaxhir ibn ghadira ibn farhad. he was one of the most famous subjects of basra. he was born in madinah in 21 hijri (642 ad). his mother hayra was the servant of our mother umm salama, the chaste wife of the prophet. he met many scholars and learned many hadiths and wisdom from them. had a conversation with his companions. hasan began to live in basra from 657. umar ibn abdullaziz, who participated in many enlightenment works during the reign of hajjaj ibn yusuf, appointed him to the position of judge of basra. he spent most of his life in basra, i.e. he spent his time in his hometown. he died in 110 ah (728 bc) and was buried there. hassan basri's father was called abul hasan yasar. after hassan was born, his name was salam, the beloved wife of our prophet. put by our mother. umma salama took the baby in her arms.[ 3 ] have you given a name to your son, khayra? they asked. no, we want to leave it up to you to choose a suitable name for him, he answered. "let's name him hasan so that allah will bless him," he answered. thus, hasan (good) joined the family of khaira (goodness). when he reached the age of 14, he joined the ranks of adults, then he and his parents came to the city of basra and began to live there. for this reason, hasan is known as hasan basri among the people because of this blessed city, which is the center of knowledge. in the years when he lived in barsa, hajjoj ibn yusuf sakafi, who made a name in history with the nickname "zalim hajjoj", was appointed as the governor of iraq. he protested. he came fearlessly to condemn this tyrannical ruler for the injustice he did to the people, and fought only for justice. then he gathered people who are ready to carry the banner of justice to his side and started an open battle against oppression and injustice. one of the traitors, fearing that hasan basri will become stronger, informs hajjoj that hasan's power is increasing due to the increase of his supporters and that he must be removed soon. then hajjoj orders hasan basri to be punished in his presence in public. but what a miracle, hajjoj is on the throne. while he was sitting, hasan basri would come to him with a white beard, with an angelic face, and a great blessing. he did not even notice that he was eating. he followed him with honor and respect. --hasan basri actually khajjoj called you to be executed, but you whispered your lips at that time, tell me what you said then he asked. then american journal of business management, economics and banking volume 20 january, 2024 p a g e | 144 www.americanjournal.org "oh lord of blessings and the one who shelters me in sorrow! just as you made the fire cool and safe for abraham, i begged you to turn its wrath into cold and safe for me. [1] hasan basri, may allah bless him and grant him peace, filled the world with mature knowledge, profound wisdom and advices calling for the enlightenment of allah during his eighty years. these are priceless hadiths and advices that make you tremble and move, bring tears to your eyes, guide those who are lost to allah, and warn the heedless about the truth of the world and the condition of people in it. he calls people to goodness, piety, impartiality, great prayer to allah and divine enlightenment with a beautiful behavior that requires asceticism, personal example and sunnah. many wisdoms and hadiths of hasan basri have been preserved and studied to this day. "surely, this world is a dream, and the hereafter is waking, and death is in the middle of it, and we are only dreaming. whoever considers his ego, he will gain profit. who if he is careless, he will lose. he who looks at the consequences will be saved. he who follows his whims will go astray. he looks at it, whoever sees it understands, whoever understands it knows, whoever knows it acts. if you stray from the right path, turn back. if you regret, uproot the thing that caused you regret. if you don't know, ask. if you are angry, suppress yourself. know: the best deeds are the things that the desires do not like." if we study and analyze hasan's life, that is, his whole life, i think we would appreciate how pious, patient, and pious a man he is. people used to ask him for advice. in particular, one person asked him: "it's raining from the sky," he said. "apologise to allah," they said. how can i get rid of poverty? he said. "apologise," they said. then another person next to him asked why did you recommend forgiveness to everyone who came to you? then hasan basri said: ask your lord for forgiveness, surely he is the most forgiving. he sent down rain from the sky for your masters and will support you with wealth, children and gardens. and gave you flowing rivers. in life, every person should donate to help others. but do you know what a real donation looks like? habib ibn muhammad, who never shied away from attending hasan's gatherings, was truly devoted to him. if he donated, he would divide it into four. he would say, "my lord, i have bought my soul from you with this." then he would donate another 10,000 dirhams and say, "this is thanks to you for allowing me to donate the first 10,000." then he would give another 10,000 and say, "my lord, the first and second if you did not accept my charity, accept the third one, then he would give 10,000 dirhams in charity and say, "my lord, if you accepted my third charity, this is thanks to him."[ 4 ] i don't mean to say that the donation will be accepted if everyone donates in many pieces. it's just that every believer should donate, do good deeds, and do righteous deeds that are only beneficial. our prayers are not superficial, we should do them from the heart, dear ones. that's what i mean. hasan basri is such a great person that the more we talk about him, the less we can say. the righteous, learned, intelligent people of his time, even the rulers, recognized that he was a great person and left their opinions about him. in particular, jabir bin zayd what do you want before you die? he replied that he wanted to meet hasan basri and be in his conversations. he said, "some of it is like the sermons of the prophets." his level of charity was equal to umar ibn khattab, may god bless him and grant him peace. that is, in the history of islam, after the caliph american journal of business management, economics and banking volume 20 january, 2024 p a g e | 145 www.americanjournal.org umar ibn khattab, in terms of religion, faith, and knowledge, he was second in piety. about hasan sabit ibn kurra: "hasan basri was a shining star in knowledge, piety, austerity, diet, chastity, gentleness, jurisprudence and enlightenment. different people used to gather in his meeting. when a group heard a hadith from the prophet, the head of the ta'wil (the science of interpretation) he used to learn. another one heard what was halal and what was forbidden, another asked for fatwa, another studied judgment and judgeship, and another listened to a group of sermons. in these sciences, he was like a lamp standing on a bottomless sea. hasan basri's his command to the emirs with long words will never be forgotten. maslama ibn abdumalik said: "i was a neighbor and an interlocutor of hasan basri. his words were consistent with his deeds. he never stopped people, he had a strong love for god almighty." hasan basri rarely laughed, he was always sad. he walked like a human being. he didn't laugh at all for thirty years, he didn't even make a joke for forty years. when people came to learn from him, the teacher's knowledge was only visible in his actions. he was a real muslim by his behavior: always he walked cleanly, his appearance was neat and clean, and all his actions were true to his word.[1] conclusion the birth of such a scientist is a great miracle. he is the greatest person of his time. i think. we have every opportunity to become more knowledgeable if necessary, and more. if we study the lives and works of great people of the past, if we are interested in finding information about them, we can become such mature and perfect people. when he asked, he said: "my soul was comforted knowing that no one would take away my sustenance. knowing that no one would act on my behalf, i entered this on my own. knowing that allah is watching me, i am ashamed of the fact that he is watching over my sins. i did. knowing that death was waiting for me, i prepared to go to my lord." references: 1.axmad muhammad tursin "dunyoni tebratgan yeti buyuk"-toshkent:"azon kitoblari"2021.-23.bet 2.https://islom.ziyouz.com. 3.https://kitoblar dunyosi.uz. 4.https://qamar.uz. 5.https://qomus.info. 6.https://kitobxon.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 85 www.americanjournal.org directions for the effective organization of a modern logistics system in the development of exports of national products kholmatov muhriddin mumin ugli master student of tashkent state university of economics, tashkent, uzbekistan e-mail address: xolmatovmuhriddin014@gmail.com a b s t r a c t k e y w o r d s logistics systems, which have a blood vessel, play an important role in the economic development of any country. an effective logistics system ensures the supply of goods and services at affordable and affordable prices for the customers, while stimulating competition in the market by optimizing the movement of finished goods and raw materials in the domestic market. on the foreign market, it increases the country's economic competitiveness and accelerates its integration into the global economy. it is very important to create an effective logistics system for our developing country. logistics, economics, private entrepreneurship, investment, product, market, customs, transportation. introduction in recent years, the intensification of competition between countries, the growing demand for products with high levels of innovation in international markets, in particular, the growing demand for high-tech products in world markets, the desire to increase the share of high-tech products in the national economy intensified. in the words of the president of our country: “today we are a state and we are moving on the path of innovative development aimed at radically renewing all spheres of public life. this is not in vain, of course. because who will win in today’s fast-paced world? if we start building our great future today, we must start it on the basis of innovative ideas, innovative approaches ”[1]. the role of uzbekistan's logistics efficiency (lpi) in the world is gradually growing. in the logistics efficiency report published by the world bank in 2018, uzbekistan is among 160 countries ranked 99th. customs efficiency in the development of the report, the quality of transport infrastructure, ease of organization of international transportation, knowledge and capacity of specialists in the field, cargo tracking criteria such as capacity and level of timely delivery of goods were taken into account. unfortunately, the lpi level in our region is not commendable. in this regard, our country ranks second in the region after kazakhstan. below you can see the difference between germany and uzbekistan, which took first place in the lpi rankings. looking at the results, it’s not hard to see that a lot more needs to be done to develop the industry. at the same time, it is important to increase the efficiency of customs processes, increase the number of specialists in the field, to apply an innovative approach to the system [1]. american journal of business management, economics and banking volume 25 june 2024 p a g e | 86 www.americanjournal.org main part the role of logistics efficiency in the economy is invaluable. improving logistics efficiency is especially relevant in our country, where we do not have direct access to seaports, which are geographically inconvenient and the cheapest mode of transport, eventhrough neighboring countries. uzbekistan seeks to adapt the national economic system to the economic situation created in the process of integration into the global economy. based on international experience, providing economic growth based on global economic integration creation of an innovative logistics system, as well as logistics. the use of innovative management methods is an important task in the current integration process. often, innovative logistics is considered in relation to the concepts of integration, globalization and internationalization. improving the management of logistics processes through the application of various innovations aimed at improving the quality of customer service, as well as the ability to increase the efficiency of logistics processes and reduce costs from logistics processes reveals. innovative logistics systems are closely interrelated and emerge directly in the organizational system of turnover, which allows you to create an integral chain of processes in the field of structural innovation in logistics. one of the main components of innovative logistics is strategic logistics, which refers primarily to the science that deals with the formation and organization of logistics capacity in the field of logistics management. this is due to the choice of strategies for the movement of material flows in the enterprise, the process, the vital activity of market structures. one of the main tasks of logistics is the organization of the system of material flow management processes in the context of mutual partnership of market structures [5]. it is recommended to constantly assess the state of innovation in the field of logistics and the development of logistics in the economy of uzbekistan in general. in the process of innovative development of the uzbek economy, there is a need to develop innovative methods of managing logistics systems and ensure compliance with the level of economic development. fig 1. uzbekistan logistics performance index: quality of trade and transport-related infrastructure (1=low to 5=high) [6] american journal of business management, economics and banking volume 25 june 2024 p a g e | 87 www.americanjournal.org another advantage of the formation of logistics is scientific development scientific, technical, material and economic development associated with the development of the latest systems of logistics and innovative logistics of production. efforts to introduce information technology into the logistics sector are intensifying, which is accelerating the process of processing and receiving information. innovative logistics in practice implies the creation of the necessary conditions for companies and their products to ensure and increase their competitive advantage. the bulk of the country's exports are agricultural products and raw materials. they are manufactured products (manufactured goods) is much cheaper than a unit of transport (for example, a ton of cotton and a ton of finished high-quality textile products). it follows that the percentage of transportation costs in the final prices of our export products is high, and this is logistics efficiency is more important in our economy compared to developed countries. here are two very simple examples to illustrate an efficient logistics system. microeconomic example: imagine you are growing agricultural products in a region. your customers can be urban markets, supermarkets, agricultural processing enterprises. you will have a few days until the clean product reaches the final buyer. during this time, you must collect the crop, pack it, load it into the vehicle, and deliver it to the customer. a problem at any point in the chain can lead to a decrease in profits and even a loss to the entrepreneur. this includes not collecting the product on time, improper packaging, improper storage, the vehicle is not available on time or malfunctions, is not properly equipped, and can cause many similar problems [3]. macroeconomic example: imagine you grow an agricultural product for export and want to export your product to a european market, such as germany. first of all, the level of demand for this product in germany, the proposed prices, the cost of your product, its export and transportation you calculate the cost. suppliers from european countries such as spain, italy, poland, which supply the same product to germany, are competitive with you. while cheap labor, product quality, and its diversity may be the advantages of your product, the high transportation costs are the product has a major impact on recent prices. improving logistics efficiency is very relevant today. while some developed countries have pursued protectionist policies in the economy in recent years (e.g. the current u.s. government), in practice the process of globalization in the world economy has not slowed down. big changes in the world market require that not only uzbekistan, but the entire region be ready for the changes. the growing role of countries such as china and india in the global economy is also growing. the fact that our region is at the center of an important transport corridor connecting asia with europe is both a challenge and an opportunity for us. projects such as one place one road, together with partners, provide an opportunity to improve our infrastructure, develop a number of areas related to transport and logistics, as well as local development will be a test in the way of increasing competitiveness for manufacturers. uzbekistan is a transit country. american journal of business management, economics and banking volume 25 june 2024 p a g e | 88 www.americanjournal.org the country has the best transport infrastructure in the region. 42,530 km of roads and 4,500 km of railways (150 km per 10,000 km) pass through the territory of our country and connect our country to important transport corridors in the region. [2] as a transit country of uzbekistan, it is especially important to have access to the islamic republic of afghanistan (trans-afghan international transport corridor) and access to the ports of bandar abbas and chobahor via afghanistan. the andijan-osh-saritosh-irkeshtam-kashgar corridor, which is becoming more and more important every year, is one of the largest projects in the history of the world and was proposed by the people's republic of china connecting with other regions through roads passing through the territory of our country. china's tir (transports internationaux routiers or international road transports [3]. let us now turn our attention to the striking difference between the east and the west. it is well known that eastern culture and lifestyle are based on social character and bring more positive results. in western countries, it operates mainly as an individual. in a market economy, professionals are constantly struggling not only to find good jobs, but also to compete through the skilled workforce of companies. a qualified specialist of a firm is a guarantee of its development, and the more such specialists, the more competitive the service or manufactured products are. fig 2. important logistics routes of the republic of uzbekistan the first road transport from china to uzbekistan via kyrgyzstan through kyrgyzstan is a testament to our high potential as a transit country. using this potential, we can go to iran and turkey through american journal of business management, economics and banking volume 25 june 2024 p a g e | 89 www.americanjournal.org turkmenistan, to the countries of the caucasus, to europe through the countries of the customs union [4]. these opportunities can create thousands of jobs, especially for our economy, directly and indirectly in manufacturing, transport, infrastructure, tourism. conclusions and suggestions to improve lpi, a single program (air transport, road transport, rail transport, warehousing services) consisting of separate parts should be developed in collaboration with industry experts. training in the field of software, existing staff skills development, infrastructure improvement. in addition, measures should be taken to increase the use of it in customs services, continuous monitoring of processes at customs and border posts, prompt resolution of problems through open dialogue with customs and industry representatives, to prevent their recurrence in the future. i am confident that the positive changes taking place in our country will have a positive impact in the field of logistics and transport in the coming days. because the burden of a growing economy falls primarily on the logistics system. therefore, increasing the export potential of our country, reducing import costs, minimizing transport costs in the domestic market and, consequently, further improving the welfare of our people depends on the efficiency of logistics. references 1. address of president shavkat mirziyoyev to the oliy majlis of december 29, 2022. 2. a. l. nosov regional logistics. m .: alfa-press, 2017 3. jamshido'g'li, r. d., rakhmonjonzokirjono'g'li, o., & kholdorovna, r. f. (2020). changes in market relations in the period of market economy and their classification. south asian journal of marketing & management research, 10(4), 120-129. 4. rustamov, d. (2019). stages of budget system and budget relations in the republic of uzbekistan. студенческий вестник, (36-2), 73-75. 5. http://www.cer.uz/ru/publications/2705/ analytical note. center for economic research. center for economic research or undp. tashkent. 6. in the annual report of the world bank on logistics indicators data 2019/2022 y. https://lpi.worldbank.org/international/global. http://www.cer.uz/ru/publications/2705/ https://lpi.worldbank.org/international/global american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 91 www.americanjournal.org financial knowledge and its reflection on financial behavior: an analytical study of a sample of customers with the tbi, rafidain & rasheed banks lecturer doctor hayder m. kareem a l duhaidahawi a b s t r a c t k e y w o r d s the research aims to determine the role of financial knowledge among the research sample, which is represented by the employees and professors of the college of administration and economics the university of kufa and the college of imam al-kadhim, as they are part of the society that participates in the use of finance at the level of daily consumption and continuous financial transactions. they are in the field of our current study, which is concerned with matters related to economics and finance, which should add better value to financial knowledge and its nature. therefore, college staff needs to know and apply the meaning of personal financial management to be able to manage their financial affairs and live more prosperously in the future. there is a growing gap between the amount of financial responsibility given to individuals and their apparent ability to manage financial decisions and take advantage of financial opportunities. therefore, the study was conducted on those who deal with al-rasheed and al-rafidain bank and tbi by taking all the dealers with these banks as a sample population, 120 questionnaires were distributed and 116 approved questionnaires were answered by the employees of the two colleges, the method was applied using spss version 23. the conclusion was that financial knowledge has a positive and significant impact on personal financial behavior and as well as financial knowledge has a positive and significant impact on the personal financial management of the study sample individuals. financial knowledge, financial behavior, personal financial management, financial decisions. introduction: financial knowledge is one of the fundamental skills that every person in this century has to grasp is financial awareness. it is one of the contemporary issues that is still being discussed, from its idea to its significance and outcomes at the individual and national levels, as well as its effect on people's engagement in the financial market (scheerens, 2023). given the crucial role that universities play in economic development, it is thought that this connection will have a very clear and significant impact on saving money as well as its impact on the flow of capital, necessitating the elimination of financial ignorance or what is known as (financial literacy) as a prerequisite for any individual to achieve their financial goals. economic liberalisation has made finance a global phenomenon that transcends national american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 92 www.americanjournal.org boundaries. anywhere in the globe is a viable place to invest and borrow. complex financial instruments were accessible to investors and borrowers after the economic floodgates were opened (chitimira and warikandwa, 2022). because financial consumers lack sufficient knowledge of the financial products and services available to them, they are unable to gain an advantage, particularly in the case of the covid-19 pandemic, which lasts for months and during which the public has suffered financially as a result of having insufficient savings and investments to use in those dire circumstances (ehrlich et al., 2023) people who lack financial literacy experience financial hardship. one of the key reasons for financial exclusion is financial illiteracy. people must possess the necessary knowledge to comprehend the fundamentals of money management in order to successfully utilise financial goods and services. financial literacy is the ability to handle money sensibly, comprehend fundamental financial ideas, and recognise the trade-off between risk and reward (zhang, 2022). financial decision-making is dependent on a mix of awareness, knowledge, skill, attitudes, and behaviour in order to ensure long-term financial security. financial literacy comprises learning about financial services and products as well as developing the necessary skills for ethical financial behaviour. governments and people are growing more and more dependent on their citizens' financial literacy and comprehension of the complexities of money. the economic stability and health of nations may be greatly affected by a lack of understanding of finance (sara et al., 2023). because of the complexity of financial goods and services, financial knowledge is becoming more and more important. financial arithmetic ideas like basic compound interest, inflation, and risk diversification are universal financial concepts that apply to all economic contexts and environments. people purchase financial goods and insurance policies without sufficient forethought due to a lack of financial awareness, and then abandon them halfway through when they run out of money to pay the payment. financial service providers that aggressively promote financial products without properly assessing the financial characteristics of their customers risk further harming those economically vulnerable segments. in order to change one's financial behaviour, one must do it early in life. literature review: financial-knowledge and its reflection on financial behavior have been a topic of interest for researchers for many years. in particular, a sample of customers with the tbi, rafidain & rasheed banks are used in this literature review to analyse the current research on financial knowledge and its reflection on financial behaviour. in-depth research has been done in the literature on the connection between financial knowledge and financial behaviour. higher financial literacy is associated with more responsible financial behaviour, according to several research. for instance, a research by huston (2010) found that those who had financial education demonstrated better financial behaviour than those who had not. similar findings were discovered in a research by lusardi and mitchell (2014) indicating those with more financial literacy were more likely to save for retirement and choose wiser investments. there haven't been many research on the connection between financial behaviour and knowledge in the setting of iraq. al-mudhafar and al-osaimi's research from 2020 indicated that financial literacy has a positive effect on people's financial behaviour in iraq. the research also discovered that enhancing financial behaviour was significantly aided by financial education. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 93 www.americanjournal.org one of the biggest banks in iraq is tbi, rafidain & rasheed, which offers a variety of financial services and goods to its clients. the financial behaviour of these banks' clients was examined in a research by abdullatif et al. (2021), and it was discovered that there was a substantial correlation between financial awareness and behaviour. according to the survey, consumers with more financial literacy were more likely to participate in responsible financial practises including saving and investing. al-najjar and al-malkawi (2019) explicitly examined the influence of financial literacy on the financial behaviour of university students in iraq in a different research. according to the research, pupils who had greater levels of financial literacy were more likely to practise responsible financial behaviour. financial literacy was also shown to have a favourable influence on financial behaviour. in conclusion, the body of research points to the critical role that financial literacy plays in determining financial behaviour. higher financial literacy levels are associated with more responsible financial behaviour, including saving and investing. only a little amount of study has been done on the connection between financial behaviour and knowledge in the context of iraq. however, the research to far points to the possibility that financial literacy and education initiatives might significantly influence how tbi, rafidain, and rasheed bank clients behave financially. research methodology: research problem: financial illiteracy continues to be a significant barrier to both financial decisions and people's full participation in the current financial environment because there is a growing gap between the amount of financial knowledge that people possess and their apparent capacity to manage financial decisions and take advantage of financial opportunities. research importance: a statement of the role of financial knowledge for individuals and its role in enhancing their financial behavior by preparing and training individuals to increase their capabilities and knowledge in how to manage their money and to focus and control their behavior in managing their financial affairs . research objectives: the study seeks to understand the financial investors, their levels of financial literacy, the strength of associations and influences on the likelihood of accumulating wealth, how to plan their daily lives and personal activities, and finally their desire to raise their standard of living by applying their financial knowledge to improving their financial behaviour to achieve financial wellbeing. research hypothesis: hypotheses were chosen that define the relationship of the two variables to the research and demonstrate the strength of the relationship between them. they are divided into three hypotheses : h1: financial knowledge has an impact on financial behaviour . h2: there is a connection between the study sample's financial behaviour and financial expertise . h3: financial knowledge has a part in financial behaviour. because these people must update their financial knowledge to keep up with an ever-changing world, better financial understanding will boost good financial behaviour whenever. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 94 www.americanjournal.org the theoretical aspect: for workers to effectively plan, budget, check, manage, control, study, and keep daily financial funds, good personal financial management is insufficient. due to the current state of society, which tends to buy things based on desires, there is a need for financial education to introduce financial knowledge so that bankers can recognise and learn how to make responsible decisions (amanah, et al., 2016). a budget, investment choices, insurance plan choices, and credit use are just a few of the financial preparation tools that must be learned in order to acquire financial knowledge. financial competence examples. a method for making judgements in personal financial management is to have financial skills. the models and graphs used in personal financial management choices (such as using checks, credit cards, and debit cards) are known as financial instruments (yogasnumurti et al.,2021). the grasp of fundamental financial words and ideas necessary to carry out everyday tasks is referred to as financial knowledge. (santos & tavares, 2020) state. financial knowledge, according to (normawati, et al.,2021), is "a person's knowledge of his financial situation, rather than basic financial concepts, and treats them as a prerequisite for effective financial decision-making." according to various definitions, financial knowledge is the degree of familiarity or understanding people have with their financial concepts or principles, which people need as a foundation for decisions about how to manage their money effectively. it also plays a significant role in financial literacy by helping people understand financial concepts. helping people manage their own finances, particularly by guiding them towards the best course of action while making management decisions for their own finances, a better degree of financial understanding will result in excellent financial behaviour, according to perry and morris (2005) (robb & woodyard, 2011). the method by which financial consumers and investors increase their comprehension of financial products, concepts, and risks and through unbiased information, instructions, and advice build skills and confidence to become more aware of financial risks and opportunities, to make informed decisions, to know where to turn for help, and to take other practical actions to improve their financial well-being (atkinson & messy, 2013), a person who is financially literate will be familiar with several fundamental financial terms (adiputra et al., 2021). because they are completely aware of their existing financial status and how to improve it, highly informed people tend to have higher life satisfaction values. financial knowledge is a conceptual definition of financial literacy since it influences one's financial behaviour and is a crucial component of financial education for those who want to prevent financial issues (mismanagement). according to mudzingiri et al. (2018), income is the sum of a person's yearly earnings from salaries, business ventures, and different sorts of investments. it comes from a variety of sources (adiputra & patricia, 2019). the foundation of financial literacy is (1) saving money.(2)debt. (3) the present state of the economy. (4) the capacity to satisfy long-term requirements.(5) money for unexpected costs.(6) personal finance management abilities (arifin, 2018). financial behavior: it is a person's behaviour that significantly affects their financial well-being. therefore, it's critical to gather proof of behaviour consistent with a standard of financial literacy. to make ends meet, practise behaviours like deliberating before making a purchase, paying bills on time, creating a budget, and saving and borrowing money. the good behaviours are determined by the american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 95 www.americanjournal.org financial behaviour score (khawar & sarwar, 2021). people often simply consider their immediate, short-term demands or engage in impulsive buying. any individual behaviour that is strongly connected to personal financial management may be categorised as financial behaviour, and this definition can be extended to include all types of individual behaviour (rahman et al., 2021). individual financial management behaviour can be assessed using four main indicators: consumption level, cash flow management skill level, credit management skill level, savings and investment skill level, and debt management skill level (adiputra et al.,2021). financial management behaviour is the behaviour of a person in managing his financial resources. the purpose of financial behaviour for investors is to clarify and aid in the comprehension of their thought processes, including their emotional reactions and decision-making procedures. this financial behaviour primarily aims to describe what, why, and how a person views money and investments. the ability to organise planning, budgeting, examination, management, control, research, and storage of money is referred to as financial management behaviour. as a result of technological advancement and its simplicity as a new payment method that offers many promotions, some people fail to allocate their income to long-term needs, such as investments, which leads to financial difficulties (raaij, 2012). financial behaviour indicates a person's capacity to manage (plan, budget, regulate, utilise, seek, and store) daily financial money (setiyani and ameliawati, 2018). as a result, failing to manage personal finances may result in major long-term financial issues, a bad social life, and other social problems. due to its potential to impact people's wellbeing, financial behaviour is crucial (scheresberg, 2013). the relationship between financial knowledge and financial behavior: the term "financial knowledge" refers to a person's comprehension of which financial concepts, such as saving and budgeting, are crucial. it is possible to build on the principle of financial education, according to which everyone has an equal opportunity to get it. financial education therefore results in increased financial knowledge, improved financial behaviour, and a rise in customers. financial literacy is one of the formations of financial management behaviour, according to the definitions provided in the preceding article, because it consists of financial education and financial experience that can enhance financial literacy and lead to more effective financial decision-making (adiputra and patricia, 2019). the relationship between personal financial behaviour and financial literacy the findings of the study indicated that financial literacy has a favourable impact on people's financial behaviour, which implies that people's financial behaviour would increase as their financial knowledge increases (morris, et al., 2022). this suggests that financial literacy has a significant and advantageous influence on money management behaviour. since it serves as the foundation for an individual to efficiently manage his income in order to attain financial independence, financial knowledge is one of the factors that influences financial management behaviour. and in order to have a strong financial understanding, the individual tends to be accountable for their financial behaviour (adiputra et al.,2021). financial knowledge seems to have a favourable impact on financial management behaviour, leading to the conclusion that a person would manage his financial resources better and more logically the more comprehensive their understanding of financial concepts is. 2021) (adiputra et al. the goal of this questionnaire, which considers personal finance knowledge, behaviours, and attitudes, is to find patterns and distinctions in the financial literacy of the study population. it is now being american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 96 www.americanjournal.org trialled at two colleges with the hope that the finished survey tool would serve as a helpful resource for academics, policymakers, and programme designers looking to develop reliable questions to gauge financial literacy (atkinson and messy, 2011). according to research (ceredo et al., 2013), there is a significant impact of financial knowledge on financial behaviour. the study concluded that if knowledge is absorbed in financial matters, it can result in acceptable financial behaviour. the research demonstrated a positive relationship between financial knowledge and behaviour. additionally, recent research has shown that knowledge according to yong et al. (2018), having more money leads to a higher degree of financial behaviour. likewise, having more objective financial information should help someone make better financial decisions. this practise is supported by empirical data showing a strong relationship between responsible financial behaviour and objective financial understanding. however empirical research has shown that increased objectivity in financial knowledge does not always translate into moral behaviour. that is, although objective financial information is a crucial motivator for developing appropriate financial behaviour, it is not sufficient (tang and baker, 2016). the practical side: the information was obtained from a study of a representative sample of 120 participants who were dealers with three banks—al-rasheed bank, al-rafidain bank, and the iraqi trade bank—and two colleges (college of administration and economics, university of kufa, and imam al-kadhim college, najaf departments). correlation analysis and multiple regressions are used to analyse them. the findings show that both objective and subjective financial knowledge influence financial behaviour, with a bigger proportional impact on self-knowledge. financial contentment, income, education, age, and race are other factors that significantly affect financial behaviour. the kind and intensity of the link, as well as the degree of coherence and the statement of changes between them and their effects, were used to assess the relationship between the two variables financial knowledge and financial behaviour. it was found that there is a good relationship, that is, a correlation between financial knowledge and financial behavior, as it reached (0.602), that is, a consistent correlation at a significant coefficient, at the level of (0.000), less than (0.05), there are differences in favor of financial knowledge, and the calculated t reached (8.121) higher than the tabular one, as for the r2, as the coefficient of the determination reached (0.36), that is, the interpretation of (r2 = 0.36), that is, the knowledge variable explains the amount (0.36) of financial behavior and the rest of the other variables. and the level of significance (0.000) of the f test, and since the value of f is (64.755) higher than its tabular value, the hypothesis is accepted, which is the existence of a correlated and logical relationship between the dependent variable and the independent variable, as for the effect relationship, we find that financial knowledge has a direct effect of (1.912) on financial behavior, and this indicates a strong influence of changes in the first variable and their impact on the second variable, so the third hypothesis was accepted that there is a relationship between financial knowledge and financial behavior. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 97 www.americanjournal.org table (1) statistical relationships source: preparation of researchers according to the outputs of the spss 23 program. concerning figure (1) represents the relationship between financial knowledge and financial behavior, which shows the greater the financial knowledge of individuals and how to manage money, the more impact directly on their financial behavior. by observing the figure, we find that with the increase in financial knowledge, the change in financial behavior increases unevenly, but in the end, it is directly related to the strength of financial knowledge he has. source: preparation of researchers according to the outputs of the spss 23 program. concerning figure (2), which shows the strength of the spread of knowledge and the strength of its association with financial behavior through the general trend line, we find that the increase in financial knowledge among individuals dealing with banks increasingly affects financial safety through how to use rational behavior in money management and how to dispose of it, and at the third stage in the form, we find that the increase in financial knowledge led to stability or balance in the financial behavior of the research sample. financial knowledge b r r square adjusted r square f sig. t sig. financial behavior 1.912 .602** .362 .357 64.755 .000b 8.121 .000 n 116 .522 8.047 .000 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 98 www.americanjournal.org source: preparation of researchers according to the outputs of the spss 23 program. results and discussion: this finding suggests that persons who practise good financial habits tend to relax more while improving their financial behaviour, which is one of the most significant financial management challenges in society. good financial behaviour, good financial knowledge, and effective stress management may all enhance one's financial well-being. this research provides some information and useful applications. financial behaviour is a crucial component of the elements that contribute to financial well-being, followed by stress and literacy in assuring the financial security of low-income members of society. even though individuals with low salaries often struggle to fulfil their fundamental necessities to assure financial well-being, it is very important to have a basic awareness of income, spending, and savings patterns since this may contribute to one's financial stability. a supportive economic policy is required to help manage low-income citizens' financial wellbeing by providing laws and regulations for banks in their interactions with individuals. government intervention is necessary to ensure that low-income citizens can earn a reasonable amount of money to ease their living. financial education improves people's capacity to manage their financial resources as a motivating endeavour for them and teaches them how to deal with unforeseen events and unfavourable financial circumstances. the study also found that, despite the fact that a well-educated set of respondents took part in the survey, financial literacy had a less impact than other factors that influence financial behaviour. until everyone has a greater understanding of a fundamental financial plan in their daily lives and faces financial pressures in addition to a moderate level of financial knowledge, individuals with noncommercial backgrounds may not have a proper introduction to financial knowledge while practising electronic banking transactions. this assistance may enhance financial behavior, lessen stress, and boost people's awareness of wise financial choices they may make on a regular basis. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 99 www.americanjournal.org conclusion: the study of low-income people's external behavioral elements and the investigation of the factors that determine their financial well-being are two constraints that must be addressed in future research, according to this study. second, conducting a survey of the study's designated region, the iraqi province of najaf, to ascertain the proportion of workers who do not interact with banks directly and investigate the causes. thirdly, expanding research efforts and offering more educational programmed to the research community to raise financial literacy and better understand how it influences a person's behavior and financial choices in order to raise his general level. the importance of stressing that developing sound financial habits, controlling personal financial pressures, and raising financial literacy are essential steps in attaining financial security. references 1. adiputra,i., patricia,e., the effect of financial attitude, financial knowledge, and income on financial management behavior, advances in social science, education and humanities research,2019, volume 439. 2. adiputra,i.,suprastha,n.,tania,l.,the influence of financial knowledge, financial attitude dan locus of control on financial behavior of e-wallet users in jakarta, 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(2023). financial inclusion as an enabler of united nations sustainable development goals in the twenty-first century: an introduction. in financial inclusion and digital transformation regulatory practices in selected sadc countries: south africa, namibia, botswana and zimbabwe (pp. 1-22). cham: springer international publishing. 9. clark,g., marshall,j., strauss,k., financial knowledge, 2009 elsevier ltd. all rights reserved, oxford university centre for the environment, oxford, uk. 10. ehrlich, e., bath, a. j., niessner, d., koemle, d., cyrus, e. m., & arlinghaus, r. (2023). codesigning management recommendations with stakeholders: a case study about northern pike (esox lucius) in the southern baltic sea. fisheries research, 263, 106687. https://dx.doi.org/10.1787/5k3xz6m88smp-en american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 100 www.americanjournal.org 11. khawar,s., sarwar,a., financial literacy and fnancial behavior with the mediating efect of family fnancial socialization in the fnancial institutions of lahore, future business journal ,2021, 7(1):27 https://doi.org/10.1186/s43093-021-00064-x. 12. morris,t., maillet,s., koffi,v., financial knowledge, financial confidence and learning capacity on financial behavior: a canadian study, cogent social sciences,2022,8:1, 1996919, doi: 10.1080/23311886.2021.1996919. 13. mudzingiri,c., mwamba,j., keyser,j., financial behavior, confidence, risk preferences and financial literacy of university students, cogent economics & finance (2018), 6: 1512366,https://doi.org/10.1080/23322039.2018.1512366. 14. nguyen, t., rózsa, z., belás, j., & belásová, l. (2017). the effects of perceived and actual financial knowledge on regular personal savings: case of vietnam. journal of international studies, 10(2), 278-291. doi:10.14254/2071-8330.2017/10-2/19. 15. normawati,r., rahayu,s., worokinasih,s., financial knowledge, digital financial knowledge, financial attitude, financial behaviour and financial satisfaction on millennials, salatiga, indonesia, 2021 eai,doi 10.4108/eai.6-3-2021.2305967. 16. raaij,w.,f., consumer financial behavior, foundations and trendsr in marketing,2012, volume 7 issue 4, editorial board. 17. rahman,m., isa,c., masud,m., sarker,m., chowdhury,n., the role of financial behaviour, financial literacy, and financial stress in explaining the financial well-being of b40 group in malaysia, rahman et al. futur bus j 2021, 7(1):52 https://doi.org/10.1186/s43093-021-00099-0. 18. robb,c., woodyard,a., financial knowledge and best practice behavior, 2011, association for financial counseling and planning education®. all rights of reproduction in any form reserved, electronic copy available at: http://ssrn.com/abstract=2061308. 19. santos,e., tavares,f., the level of knowledge of financial literacy and risk of the portuguese, eulália santos, fernando oliveira tavares,volume 13 | 2020 | number 2. 20. sara, i. m., udayana putra, i. b., kurniawan saputra, k. a., & jaya utama, i. w. k. (2023). financial literacy, morality, and organizational culture in preventing financial mismanagement: a study on village governments in indonesia. cogent business & management, 10(1), 2166038. 21. scheerens, j. (2023). theory on teaching effectiveness at meta, general and partial level. in theorizing teaching: current status and open issues (pp. 97-130). cham: springer international publishing. 22. scheresberg, b.,c.,financial literacy and financial behavior among young adults: evidence and implications,2013,numeracy: vol. 6: iss. 2, article 5.doi: http://dx.doi.org/10.5038/19364660.6.2.5. 23. tang,n., baker,a., self-esteem, financial knowledge and financial behavior, journal of economic psychology 54 (2016) 164–176. 24. yogasnumurti,r., sadalia,i., irawati,n., the effect of financial, attitude, and financial knowledge on the personal finance management of college collage students, in proceedings of the 2nd economics and business international conference (ebic 2019) economics and business in industrial revolution ,2021, pages 649-657. 25. yong,c., yew,s., wee,c., financial knowledge, attitude and behaviour of young working adults in malaysia, institutions and economies,vol. 10, no. 4, october 2018, pp. 2148. 26. zhang, y., & chatterjee, s. (2023). financial well-being in the united states: the roles of financial literacy and financial stress. sustainability, 15(5), 4505. https://doi.org/10.1186/s43093-021-00064-x https://doi.org/10.1186/s43093-021-00099-0 http://ssrn.com/abstract=2061308 http://dx.doi.org/10.5038/1936-4660.6.2.5 http://dx.doi.org/10.5038/1936-4660.6.2.5 american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 181 www.americanjournal.org priority areas of investment attractiveness of housing construction usmanov mirumar abdulla o’g’li independent researcher of tashkent state university of economics a b s t r a c t k e y w o r d s stimulating the development of investment activity of enterprises of the investment and construction complex of the region is one of the ways to solve the problem of providing housing for the population. the article lists the main directions of activation of the process of attracting investment resources of construction organizations. the main problems of investment development in housing construction are presented. the authors propose their own options for simplifying state regulation in housing construction. investment activity, social problems, housing sector, construction complex, development strategy, state regulation, antimonopoly committee, mortgage, capital, real estate market. introduction the housing problem is one of the social problems of any country in the modern world. providing housing for all categories of the region's population, improving the standard and quality of life, reducing social tension in society, as well as creating effective incentives to raise funds and investment activity of the population is one of the main factors. solving the problem of housing security is directly related to the efficiency of the investment and construction complex, its level of investment and innovation activity. stimulating the investment activity of construction organizations in the field of housing construction increases the level of investment attractiveness of the regional housing construction market, creates conditions for the implementation of state and regional programs and the improvement of the quality and quantity of indicators of the development of the mortgage lending system. the main directions of activation of the process of attraction of investment resources of construction organizations in housing construction are as follows: 1. reduction of administrative barriers and creation of mechanisms to combat monopolization and administrative protectionism in the housing construction market. it is aimed at solving this problem, expanding the possibilities of housing builders, reducing time and financial costs at the stage of project preparation, and establishing a competitive procedure for obtaining construction permits, blocking monopolization and protectionism, and providing land plots at auctions [2]. 2. regulation of the system of providing source information for the design and transfer of permits and administrative documents. on average, these costs are estimated at 12-22% of the total construction cost. an average of 35 organizations participate in the approval of initial permit american journal of business management, economics and banking volume 20 january, 2024 p a g e | 182 www.americanjournal.org documents, verification of project documents, and issuance of construction permits. this process can take about 10 months. 3. development of rules for determining reasonable fees for connection to engineering communications, as well as for the services of organizations and institutions performing coordination, control and inspection during construction [3]. 4. to activate the work of antimonopoly authorities, to determine cases of monopolistic price increase, collectivization of construction material producers. it is necessary to monitor and approve operations on the merger of enterprises of the construction industry or the purchase of control piles in enterprises. 5. development of regulations on conducting design-estimate documents and audits of calculations during construction. 6. development of progressive forms of housing construction based on innovative technologies through the progressive development of the innovative component of the regional investment and construction complex. conditions for encouraging innovative activity: 1. availability of necessary and sufficient technological and intellectual potential to ensure effective innovations; 2. constant increase in the number of participants (students), graduate students, young scientists in scientific and innovative activities); 3. availability of innovative activity infrastructure elements (business incubators, innovation funds, technology transfer centers, technoparks, cities of science, etc.) that provide the generation of scientific ideas; 4. the demand of business structures for innovations [1]. the most characteristic types of innovations in the field of construction are technological innovations, which make up 56% of the total innovative structure. the introduction of technological innovations creates conditions for increasing the level of intensive development, affects the practical design solutions of construction industry organizations, the field of creation of ready-made construction products, ensures growth in the operational characteristics of the objects under construction. also, the development investment and construction complex is determined by the level of implementation of organizational and management, product and marketing innovations [4]. investment infrastructure allows to create conditions for the sustainable development of nongovernmental organizations in the field of housing construction, and by implementing certain mechanisms for its promotion and regulation, it creates conditions for increasing the management of its investment activities by state bodies. the investment infrastructure for mutual cooperation in the field of housing construction between state bodies and non-governmental non-profit organizations should include the following components: 1) complex of information provision of investment activities of non-governmental non-profit organizations in the field of housing construction. the purpose of this complex is to have the strategy of socio-economic development of housing construction, regulatory legal documents, databases of organizations interested in implementing programs to improve housing conditions of the population, and other information that increases the efficiency of investment resources; american journal of business management, economics and banking volume 20 january, 2024 p a g e | 183 www.americanjournal.org development of the regional scientific and technical base formation and development of the market of scientific and technical innovations innovation infrastructure development encourage the development of innovative communication development of new production capacities on an innovative basis encourage the development of existing industrial enterprises development of industrial enterprises increase in new housing supply (housing growth) increased demand for new housing investments in housing construction attracting investors to the region creating a favorable innovation environment in the region increasing the investment attractiveness of the regional housing construction market an increase in budget revenues allocated for the implementation of federal and regional programs in the field of housing construction increase in the share of the population ready to buy housing on credit 1 sq. m. decrease in price.m. housing 2) a set of expertise of proposals that ensures the existence of independent assessment institutes that allow the implementation of social and other programs, projects and the mechanism of open competitive interaction; 3) a complex of financial and material and technical support that contributes to the development of conditions for the use of state and communal funds, private and corporate donations, income from services and work, grants from international organizations and foundations of uzbekistan, etc.; figure 1. the impact of the innovative component on the flow of investments in housing construction 4) formation of a set of consulting services between the population and commercial organizations in order to increase the efficiency of investment activities; 5) a complex of personnel training and retraining for work in the non-state-non-profit sector, as well as sectoral programs and projects aimed at solving the housing problem; 6) a set of regulatory legal support for non-governmental non-commercial partnerships in the field of housing construction; reducing the cost of housing construction reducing the price of construction materials and constructions american journal of business management, economics and banking volume 20 january, 2024 p a g e | 184 www.americanjournal.org 7) coordination and regulatory complex affecting the investment infrastructure through the use of economic and administrative methods, as well as coordination, regulation and stimulation of the activities of non-governmental non-commercial organizations [5]. indicators of investment and innovation activity of construction organizations are closely related to each other and mainly determine not only the level of development of the investment and construction complex, but also increase the investment and innovation attractiveness of the region (fig. 1). in addition, in the improvement of the regulation of housing construction, the value of housing construction is estimated as the selling price. when profit is added to the cost of housing construction, the determination of the selling price is influenced by the balance of supply and demand in the market. this indicator characterizes the sales turnover in the housing market, it includes investments of individuals and legal entities in housing, and the total volume of sales is determined to analyze the total investments of individuals and legal entities and market flows. at the same time, the built objects may not be sold this year. construction costs are calculated to determine housing construction costs and price index at current and comparable prices [6]. changes in the field of housing construction are currently being implemented within the framework of the "investment policy strategy of the republic of uzbekistan until 2025". however, the issue of housing remains one of the most difficult social problems. despite the measures taken, the socioeconomic situation of uzbekistan continues to have a negative impact on housing construction. currently, the number of investments in housing is decreasing, the demand for housing is increasing, and the opportunities for people to buy housing are decreasing. the pace of housing construction is slowing down compared to last year [7]. thus, in the current environment, it is important to determine the value of modern housing construction and stimulate supply and demand in this complex industry. because the level of provision of housing construction determines the well-being of the population, and directly affects the health, cultural development and moral satisfaction of individuals and society. references 1. matveykin, v.g. innovative potential: current state and development prospects: monograph / v.g. matveykin, s.i. dvoretsky, l.v. minko and others m.: publishing house mashinostroenie-1, 2007. 284 p. 2. kuzovleva, i.a. development of methodological foundations for managing innovation processes in regions with problematic economies/i.a. kuzovleva, v.l. berestov and others bryansk state. academy of engineering and technology. – bryansk: rio bgita, 2010. – 238 p. 3. cherkashina e.v., krapivina e.s. non-profit organizations in the field of housing construction and prospects for their development: monograph belgorod: “cooperative education”, 2006. 4. krapivina e.s. increasing the efficiency of using investment resources in the activities of nonprofit organizations in the field of housing construction // scientific and practical conference “innovative technologies in cooperative education as a factor in economic development”, buk, 2009. 5. batalin b.p. on some issues of the state and development of construction // construction economics. 1995. no. 10. pp. 8-10. 6. buzyrev v.v., zakinchak g.n., shlykova m.v. formation of housing construction investment policy in regions. ivanovo, 1998 igasa. 173s. 7. decision of the cabinet of ministers of the republic of uzbekistan "on approval of the investment policy strategy of the republic of uzbekistan until 2025" www.regulation.gov.uz http://www.regulation.gov.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 127 www.americanjournal.org the impact of energy policies for g7 countries on the final price of oil faisal zaidan sahar imam ja'afar ai-sadiq university college of administrative and financial sciences department of oil and gas economics faisal.zidane@sadiq.edu.iq dr. mustafa. a. farhan imam ja'afar ai-sadiq university college of administrative and financial sciences department of oil and gas economics mustafa.a.farhan@sadiq.edu.iq a b s t r a c t k e y w o r d s the study and analysis of the global oil market in isolation from the role of the policies of international oil organizations, especially the international energy agency (iea), is tainted by a lack of analysis of the influencing factors and consequently the final results for them, as the impact of these policies is often greater and with different durations of time than other market factors. therefore, it is important to analyze the policies of the oil organizations and the extent of their impact on the oil markets in the short, medium and long term, for a more accurate and broader analysis of the global energy balance, and the supply and demand for oil at the present and future, in order to predict the path of global oil markets to find out the factors supporting market stability, especially oil prices that it is a reference to other energy prices and their future plans, and in light of the fundamental developments that the markets have witnessed during the past three decades, as the trends of supply and demand for oil were characterized by the inability to continue in the future in the current form from the economic, social and environmental perspective, this on the one hand, and on the other hand economic growth depends to the world on the extent of its success in securing energy sources that meet future needs, in light of the challenges of the safety of energy supplies, especially oil ones, and the development of energy alternatives and their gradual replacement, and here emerges the role of the international energy agency on the global oil market. international energy agency, oil market, energy policies. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 128 www.americanjournal.org introduction: it created a need for the oil-producing countries before the middle of the last century to establish a grouping (opec), which essentially aims to take care of their interests by maintaining the stability of global oil markets and reaching a fair price for oil. this action by the oil-producing countries was met with a reaction from consumer countries, as the international energy agency was established, which aims to take care of the interests of oil-consuming countries in return, and to confront opec and prevent it from controlling global oil markets, by reducing dependence on oil from opec countries, through a set of policies with different deadlines aimed at short the long-term includes increasing oil production outside opec countries, while the long-term includes increasing the efficiency of energy use and increasing the use of gas and coal, as well as increasing the use of alternative energies of various types under the pretext of reducing environmental pollution. therefore, a situation of undeclared competition prevailed between international oil organizations to control global oil markets, which negatively affected the stability of global oil markets and the fluctuation of its prices and thus the revenues of oilproducing countries and the stability of the global economy . research problem: the main goal of establishing the international energy agency is to protect the interests of oilconsuming countries and confront opec and promise to extend its control over global oil markets. however, the policies followed have begun to negatively affect the stability of oil markets and the fluctuation of its prices through the policies of member states, especially industrialized countries . search goal : explaining the most important factors facing the stability of the global oil market by presenting the international energy agency’s policies with different time periods aimed at controlling energy markets instead of preserving them. research hypothesis: the research hypothesis is based on the existence of a negative relationship between the policies of the international energy agency and the stability of oil markets and prices . research methodology : the researchers used the descriptive analytical method to identify the role of energy policy in achieving instability in the global oil market. search structure : the research was divided into three sections. the first section dealt with the origins, objectives, and most important policies of the international energy agency. the second section dealt with the carbon tax policy and its impact on global oil markets. the third section dealt with the policy of moving towards alternative energy sources of oil (renewable and non-renewable) and its impact on the global oil market. the fourth section is the policy of strategic oil storage and its impact on global oil markets, and finally reaching conclusions and recommendations. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 129 www.americanjournal.org the first section: the origins, objectives, and most important policies of the international energy agency first: origin and objectives: it is an organization for oil-consuming industrialized countries, founded in 1973-1974, under the leadership of the united states, through which energy policies, especially oil, are drawn up with the aim of: securing permanent oil supplies to the countries of the organization, and contributing to the development of energy alternatives. there are several reasons that prompted the oecd countries to establish the international energy agency, including the october war of 1973, the rise in oil prices, and the decline of the role of the oil cartel for major oil companies after the nationalization movements in many oil countries (al-aqeel, 2003: 39). its objectives were defined in the seventies of the last century as follows: (ecb,1999:3-7). 1creating a strategic reserve of crude oil in the member states of the agency that covers their needs for a period of 90 days, which rose to 180 days. the goal of building the strategic reserve is to avoid any interruption of oil supplies to which the member states are exposed, in the event of any oil crisis that threatens the safety of supplies. in addition, the storage will be used as a pressure tool on the level of oil prices, and the process of managing and organizing this storage will be carried out according to the agreed upon conditions. 2increasing investments in the field of exploration and drilling for oil and gas, by conducting extensive surveys in new areas, especially outside opec countries. 3developing alternative energy sources to oil, and rationalizing oil consumption in all economic sectors . 4diversifying oil supplies from outside opec to reduce opec’s role and limit its control of the global oil market. 5imposing taxes on petroleum products, to reduce oil consumption and reduce oil imports, with the aim of paying attention to environmental safety (al-naimi, 2007: 141). reducing dependence on imported oil. second: international energy agency policies the international energy agency has followed a set of policies to achieve its goals through multiple strategies, including: 1carbon tax policy: carbon taxes they are taxes and fees imposed by the state on the taxpayer who causes pollution, to compensate for the damage resulting from burning fossil fuels. arthur pigou is considered the first to call for carbon taxes, and they are also among the economic tools that contribute to protecting the environment. they were presented at a conference kyoto by the european union, and it is considered one of the most successful and efficient contemporary means of protecting the air from polluting gases, and most countries in the world have agreed to adopt a green tax policy to reduce air pollution (raziq, 2007: 99101). the international monetary fund emphasizes that carbon tax policies should be characterized by the following (tamirza, 2008: 22(. along-term and credible. ball countries, whether developed or developing, must begin pricing their emissions. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 130 www.americanjournal.org testablishing a unified global price for emissions. dallowing international trading in emissions permits under a plan that imposes upper limits on pricing. cprices must be flexible enough to accommodate periodic economic fluctuations. hdistributing carbon tax prices fairly among countries. 2the policy of moving towards developing alternative energy sources (renewable and nonrenewable(. a the policy of increasing production from renewable energy sources: the use of fossil fuels in industrial and consumer processes is a major source of pollution in all its forms, not to mention the economic effects resulting from it. in order to reduce air polluting emissions, industrial societies have relied on other sources of energy. other than fossil fuels, and since they are the countries that most use air-polluting technology, steps and policies must be taken to reduce greenhouse gas emissions. the international energy agency countries followed within their policy increased reliance on renewable sources of energy, and since five decades ago, interest in environmentally friendly renewable energy sources and the use of technology has increased. renewable energy is available over wide ranges in a way that makes it occupy a good position in the global energy balance despite the modernity of these sources (ezzat, 2012: 201.) bthe policy of increasing the production of unconventional oil (shale, sand, shale gas(. the united states of america, the largest oil consumer in the world, has recently moved to use a new type of unconventional fossil fuel (shale oil, sand oil, shale gas), which is more expensive and pollutes the environment than traditional oil, and can be addressed through the following: 1shale oil: shale oil is a term given to sedimentary rocks that contain organic materials, consisting of organic carbon, nitrogen, and oxygen, which are collectively called kerogen. this material is capable of being distilled and burned, and then shale oil is produced from it. due to intense pressure and heat (n.e.altune and others, 2006:214). shale oil is characterized by large global reserves estimated at about (5) trillion barrels that can be extracted according to available technology and capabilities, and these reserves are still increasing as a result of research, exploration, and the development of technology. the shale oil resource is concentrated in six main countries: russia, the united states, china, argentina, libya and venezuela, and the reserves of these countries represent about three-quarters of the world’s reserves (david, may 2012, www.ceres.org) . 2sands oil: it is accumulations of sand and clay saturated with bitumen, which is oil in a solid state. it requires unconventional methods of production. it is processed and converted into manufactured crude oil. the alberta region in canada is the largest concentration of sands oil and extends over an area oil sands cover (4.3) million hectares of forest, and consume large amounts of energy, as well as using large amounts of water (alberta, 2008,: 2-4). there is great opposition from environmental protection associations to the production of oil sands due to the significant environmental and social damage it causes (stockman and wykes, 2012: 6). oil sands production in canada increased from about one million barrels per day in 2003 to reach about 3.5 m/b/d in 2019 (eia.org.com) . 3shale gas: the first well for shale gas was drilled in the united states of america in 1821 in the state of new york. shale gas is considered one of the promising new energy sources, for which http://www.ceres.org/ american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 131 www.americanjournal.org huge amounts of reserves were discovered, especially in north america. there are approximately 142 basins. sedimentary rocks called (shale), which is one of the types of sedimentary rocks that contain shale gas, but the basic structure is available in only 32 basins, and the rest has not yet been exploited (wec, 2013:3-8). it requires huge investments in order to produce economically, and geological survey studies have estimated that the reserve of shale gas is estimated at approximately (456) trillion cubic meters (16,110 trillion cubic feet) compared to 187 trillion cubic meters of conventional gas, and about (40%) of shale gas reserves are economically viable at the level of prevailing prices, and the largest percentage of this gas is located in the united states of america, where the size of the economically viable resource base for the united states is estimated at about (32.7) t/s/m, and shale gas production has increased over the past decades due to... the rise in energy prices, and it is likely that gas prices in the near future will be lower than coal prices, as the costs of carbon reduction are taken into account, which increases demand for it globally, and this will lead to changes in energy supplies in the long term (al-araji and al-zubaidi, 2015: 8(. 4strategic and commercial oil storage: the strategic storage policy began as a response to the energy crisis in 1973, in what is known as the energy policy and conservation plan by the countries of the international energy agency, and the importance of the role of storage emerged during the eighties. and the nineties of the last century in influencing global oil markets (abdel-wahab, 2017: 88). the movement of strategic reserves is directly linked to opec production and consumption by industrialized countries. the factors affecting storage do not differ from the factors affecting oil, in addition to opec’s production policies. storage is considered a pressure card used to influence oil markets and use it for speculative purposes depending on expectations of demand and prices and opec’s production decisions. (al-bassam, 2005: 157). the second topic: carbon tax policy and its impact on global oil markets the global demand for oil has recently been linked to the issue of climate change, which is an extremely complex issue. after the interest of industrialized countries, led by the european union and japan, increased, they took the phenomenon of global warming as a justification for achieving economic goals at the expense of the interests of other countries, so the issue of carbon taxes emerged as one of the most important policies. which is imposed on oil and its derivatives in order to preserve the environment, but it has a direct impact on the volume of global demand (heinberg, 2006: 26(. after the oced organization classified the economic tools for protecting the environment into five categories, one of which is (carbon taxes), which are imposed by many countries, especially the european union, to reinforce the principle (the polluter pays) to create an incentive for producers and consumers to change activities that negatively affect the environment, and therefore this was taken the principle for collecting taxes, which in ocd countries has been estimated at (6%-7%) of total tax revenues or (2%-2.5%) of the gross domestic product (ahmadi, 2009:). only oil and its products are exposed to the carbon tax by industrialized countries, under the pretext of protecting the environment, at a time when support continues by industrialized countries for alternative energy sources that pollute the environment, such as coal, shale oil, and shale gas, as the use of coal results in (1.05) tons of carbon. for each barrel of oil equivalent, compared to (0.82) tons of carbon in the case of oil and 0.63 tons of american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 132 www.americanjournal.org carbon in the case of gas (juma, 2005: 12). the impact of carbon taxes on global oil demand can be explained as follows (hassan, 2008: 106-107:) 1impact on energy consumption by imposing high taxes, while industrialized countries still provide support for coal, which pollutes the environment more than oil. 2 limiting the increase in oil consumption, as the carbon taxes imposed on oil derivatives represent a barrier between the global oil price and the oil price paid by the final consumer, and thus the prices of oil derivatives remain high even with the decline in global oil prices . table ( 1 ) percentage % carbon taxes on a barrel of oil in industrialized countries and the oecd for the period ( 2003 2019 ) country 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 usa 57 43.7 33.0 33.3 29.5 21.4 35 26.8 20 20.4 22.4 24.4 48.6 58.3 48.3 40.1 42.3 canada 99 85.1 72.0 64.3 60.7 42.7 67 61.4 51.6 53.2 53.2 55.4 85.6 101.7 87.0 69.1 77.1 japan 176 156 107 86 78 61 118 99 78 71 63 69 116 164 127 99 112 france 336 297 218.9 185.1 185.5 150.0 211 162.7 128.4 120.2 128.1 140.7 225.9 283.8 247.6 219.5 231 germany 396 340.0 243.2 205.1 209.3 169.9 245 187.8 145.8 134.3 141.5 152.7 233.4 283.5 234.8 194.9 203 italy 376 333.4 246.9 207.6 203.2 162.6 235 177.4 148.5 164.5 175.6 196.2 298.3 355.5 295.1 236.4 243 uk 466 414 296 253 252 180 249 213 170 173 175 202 337 356 282 225 241 average countries 273 239 176 149 147 112 167 133 107 106 110 121 194 232 191 157 166 countries oecd 262 228 167 145 142 115 168 139 109 104 109 120 189 228 191 155 163 sources : opec , annual statistical bulletin ,vienna, 2009, 2005 , p.91, p73 opec , annual statistical bulletin ,vienna, 2015 , p.90 opec , annual statistical bulletin ,vienna, 2020 , p73. © 2020 organization of the petroleum exporting countries. table (1) shows the tax rate imposed on a barrel of oil. it is noted that in some countries taxes have risen to record rates, especially in european countries, as they reached their highest rates in the united kingdom and germany (466%, 396%) respectively, as well as in the rest of the industrialized countries. the seven and other oecd countries, that is, more than four times the price of one barrel, and this policy would lead to the following : 1the prices of petroleum products rise at such high rates that any decline in global oil prices prevents an increase in domestic consumption. 2increasing financial revenues as a result of imposing taxes at rates higher than the revenues of oil-producing countries, and the possibility of redirecting these revenues into renewable energy production projects and development projects . american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 133 www.americanjournal.org 3low prices of alternative energies compared to oil. the reason for this is not due to the costs of production or their global prices, but rather to the taxes imposed on oil, which increases the production of alternative energy . 4variation in tax rates between industrialized countries, resulting from the amount of oil consumption and caution against the tax curbing economic growth rates. the economies of the countries in table (1) were able to deal with these high rates of taxes and achieve economic growth rates. table (2) shows the final prices of oil reaching the consumer in the seven major industrial countries and oecd countries for the period (2003 2019), which represents: (price oil, oil taxes and manufacturing margin(. table ( 2 ) the final price of a barrel of oil in the seven industrialized countries and oecd countries for the period (20032019) dollars country/year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 usa the final price 64.40 76.68 95.93 108.8 118.6 142.7 100.5 119.1 152.0 157.9 153.4 147.8 105.1 92.45 104.0 120.1 115.1 oil price 27.66 35.86 48.82 59.17 66.77 94.97 58.83 76.02 102.3 101.6 97.26 89.43 45.81 37.94 48.12 59.21 56.31 tax price 15.75 15.70 16.12 19.74 19.75 20.34 20.36 20.39 20.56 20.65 21.81 21.88 22.29 22.16 23.26 23.80 23.84 manufacturing margin 20.99 25.12 30.99 29.97 31.74 27.56 21.16 22.80 29.42 35.28 34.27 36.37 37.71 32.36 33.32 37.60 35.77 canada the final price 79.24 94.63 118.8 133.2 147.7 169.8 129.0 158.6 197.3 202.4 196.5 184.8 134.1 123.7 138.3 156.7 144.2 oil price 29.53 38.13 52.37 64.33 70.04 101.1 60.29 79.14 110.0 110.1 108.0 98.60 53.48 43.60 54.30 70.88 63.12 tax price 29.40 32.45 37.72 41.41 42.55 43.34 40.32 48.64 57.20 58.88 57.79 54.70 45.82 44.37 47.28 48.99 48.71 manufacturing margin 20.32 24.05 28.09 28.09 35.08 25.23 28.69 30.78 29.43 32.85 30.06 30.88 35.61 35.60 37.24 36.70 32.19 japan the final price 115.1 132.0 145.1 157.6 159.4 213.2 175.2 208.3 254.7 251.2 222.7 216.4 158.2 152.4 166.9 192.9 192.7 oil price 29.26 36.59 51.57 64.03 70.09 100.8 61.29 79.43 109.3 114.7 110.6 104.1 54.20 41.79 54.42 72.85 66.78 tax price 51.54 57.28 55.19 55.57 55.31 61.61 72.29 78.91 85.72 82.03 70.22 71.72 62.77 68.80 69.20 72.11 74.63 manufacturing margin 34.30 38.14 38.85 37.46 34.23 50.53 42.34 50.00 59.05 54.84 41.64 40.67 41.85 42.15 43.28 47.63 50.66 france the final price 145.8 174.2 198.4 212.0 236.1 289.1 220.9 241.0 293.2 283.4 285.0 273.5 205.3 196.1 221.2 267.6 254.2 oil price 28.87 37.61 52.74 63.69 72.22 97.63 61.64 79.78 111.7 112.0 109.5 99.40 53.14 43.48 54.47 71.59 64.98 tax price 97.11 111.8 115.5 117.9 131.1 146.4 130.3 129.8 143.5 134.6 140.4 139.9 120.0 123.4 134.9 157.2 150.0 manufacturing margin 19.87 24.71 30.22 30.40 32.76 44.99 28.97 31.43 37.83 36.71 35.09 34.25 32.10 29.19 31.86 38.87 39.18 germany the final price 164.1 188.4 209.9 223.8 255.6 300.9 245.5 261.3 313.1 304.9 303.9 290.7 214.7 199.9 218.4 251.5 236.2 oil price 28.44 36.65 52.30 63.29 71.60 96.70 61.18 78.49 110.6 112.2 109.6 99.76 52.65 42.80 54.02 70.50 64.43 tax price 112.7 124.6 127.2 129.8 149.9 164.3 149.9 147.4 161.3 150.7 155.1 152.4 122.9 121.3 126.8 137.4 130.8 manufacturing margin 22.92 27.19 30.42 30.72 34.12 39.92 34.39 35.44 41.19 41.97 39.21 38.58 39.14 35.82 37.56 43.59 40.90 italy the final price 165.9 195.5 222.7 235.9 259.5 309.6 246.1 263.2 323.7 346.0 349.3 341.1 249.5 229.1 250.3 280.4 264.0 oil price 28.58 36.60 51.33 62.50 70.20 96.67 60.69 79.29 110.2 112.1 109.9 99.09 52.06 42.33 53.17 70.88 64.70 tax price 107.4 122.0 126.7 129.7 142.6 157.2 142.5 140.6 163.7 184.5 193.1 194.4 155.3 150.5 156.9 167.5 157.5 manufacturing margin 29.90 36.85 44.64 43.66 46.69 55.70 42.92 43.29 49.77 49.32 46.24 47.59 42.16 36.29 40.19 41.97 41.76 uk the final price 184.7 218.1 240.2 257.5 288.8 311.6 239.2 278.5 334.2 341.0 334.4 336.8 270.5 230.8 239.4 267.1 258.2 oil price 29.13 37.75 53.79 65.00 73.80 99.34 62.39 80.60 113.5 112.6 110.2 100.0 53.81 44.62 54.69 72.65 65.58 tax price 135.9 156.3 159.1 164.7 186.0 178.9 155.7 172.1 193.5 194.9 193.3 201.9 181.5 158.9 154.7 163.6 158.0 manufacturing margin 19.28 24.16 27.37 27.79 28.91 33.49 21.67 25.57 27.68 33.79 30.76 34.61 35.08 27.06 30.20 30.83 34.53 average of the seven countries the final price 131.3 154.2 175.8 189.8 209.3 248.2 194.0 218.6 266.9 269.5 263.5 255.7 191.3 174.9 191.4 219.5 209.2 oil price 28.78 37.03 51.85 63.14 70.67 98.24 60.90 78.96 109.8 110.7 107.9 98.64 52.16 42.37 53.31 69.79 63.70 tax price 78.57 88.61 91.10 94.15 103.9 110.3 101.6 105.4 117.9 118.0 118.8 119.5 101.5 98.50 101.8 110.1 106.2 manufacturing margin 23.94 28.60 32.94 32.58 34.79 39.63 31.45 34.19 39.20 40.68 36.75 37.57 37.66 34.07 36.24 39.60 39.28 oecd countries the final price 131.3 154.4 174.4 190.3 209.5 249.4 198.5 224.9 269.0 263.9 264.7 263.4 197.4 180.9 199.8 225.5 214.4 oil price 28.88 37.22 52.30 63.29 71.09 97.38 61.68 79.39 110.5 111.6 108.9 99.68 52.48 42.73 53.68 70.89 64.61 tax price 75.62 84.95 87.25 91.68 101.3 111.9 103.6 110.4 120.90 115.93 119.29 119.53 99.58 97.40 102.50 109.91 105.26 manufacturing margin 26.80 32.25 34.88 35.38 37.13 40.14 33.26 35.15 37.60 36.38 36.60 44.24 45.41 40.86 43.64 44.70 44.56 sources: opec, annual statistical bulletin, vienna, 2005, p128, 2010, p120, 2015, p90, 2020, p.73 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 134 www.americanjournal.org from the data in table (2), the following can be observed : 1 high taxes in general, especially in the european union countries, as the tax exceeded more than four times the price of a barrel, while it decreased in the united states of america, and the reason for this is its large consumption of oil, and in order not to reduce economic growth rates, which is linked to a direct and direct relationship to energy consumption. in general and oil in particular . 2increasing the financial revenues of countries, and oil tax revenues have become an indispensable source, especially linking these revenues to investment projects, research and development of alternative energy sources (renewable and non-renewable), as well as mitigating the environmental impacts resulting from the consumption of fossil fuels. 3reducing pollution rates within the earth summit agreements, under which countries were able to trade their share of carbon emitted. 4reducing dependence on imported oil, especially from opec countries, by increasing energy consumption efficiency and turning to alternative energy, as well as increasing supplies from outside opec. 5despite the increase in taxes at high rates in oecd countries, there is an increase in energy consumption from more polluting sources such as coal, especially in countries that have large reserves of coal and other sources (emmanuel, 2010: 5) . 6a continuous cycle between the agency’s policies that begins with taxation, obtaining revenues, and financing alternative energy projects as well as strategic storage. that is, the first cycle of the agency’s policies is carbon taxes, followed by directing financial returns to the following cycles (alternative energy, strategic storage). this means that any of the agency's energy policies did not bear large financial burdens as a result of their implementation. on the contrary, they achieved gains in the long term. the carbon tax rate may rise or fall in these countries depending on the state of the economy that the country is going through, whether it is a state of recession or a state of recovery. it has become a financial tool used to mitigate or stimulate the effects of the economic cycle. the third topic: the policy of moving towards alternative energy sources of oil (renewable and non-renewable) and its impact on the global oil market alternative energy to oil is divided into two types, and we will discuss the new ones: renewable energy sources, which are divided into many types such as solar energy, wind energy...etc., and nonrenewable energy sources, which are represented by non-conventional fossil fuels such as shale oil, shale gas, and sand oil, as it affects the increase in the production of these sources on global oil demand and reduces the share of oil in the global energy balance. to clarify this, this requirement has been divided into the following : american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 135 www.americanjournal.org first: policies towards renewable energy sources and their impact on oil demand the international energy agency countries are moving towards renewable energy sources and increasing their investments within the agency’s energy strategy. therefore, in the 1970s, the international energy agency laid the foundation for achieving two basic goals. the first is the development of energy alternatives other than oil, especially renewable energy sources. the second is the development of energy consumed. which is directly linked to economic activity, so any decline in the global economy will be followed by a decline in energy consumption and thus will impact oil markets (batter, 2013: 286). the production of renewable sources has increased over the past two decades, and the reason for this is due to: (ezzat, 2012: 206:) athe high costs of producing renewable energy sources have become acceptable as a result of the rise in oil prices. b many environmental conferences were held during this period that aimed to reduce greenhouse gas emissions and move towards clean energy sources. tincreasing investments directed towards renewable energy sources, which in turn reduced production costs. table (3) shows the evolution of the consumption of renewable energy sources in the agency countries for the period (2003-2019. table ( 3 ) development of renewable energy production in oecd countries and the world for the period ( 2003-2019 ) million barrels equivalent * country/year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 usa 52.2 54.5 57.3 63.2 68.6 82.3 94.0 109.0 126.7 143.3 167.1 186.3 198.2 230.6 262.2 283.5 307.5 canada 6.3 6.7 6.7 7.1 7.5 7.4 9.8 12.1 13.1 14.5 14.8 15.5 25.0 28.6 28.8 29.5 30.9 japan 12.3 13.0 15.8 16.1 17.1 16.8 16.8 18.6 19.4 21.4 25.8 32.7 42.8 42.7 51.3 60.7 76.0 france 2.5 2.7 3.1 3.7 5.2 6.3 7.9 9.7 12.3 15.2 16.4 18.1 21.9 23.3 26.0 29.4 34.4 germany 17.5 23.1 26.9 32.4 42.1 45.7 47.8 52.8 66.7 76.1 81.2 89.7 106.6 106.1 123.1 129.8 140.6 italy 6.4 7.2 7.7 8.5 9.3 10.3 12.6 16.2 23.3 31.6 37.1 39.0 39.7 41.1 42.5 41.2 42.4 ukm 4.6 5.8 7.5 8.5 9.1 10.5 12.5 14.1 18.5 22.5 30.4 36.8 48.3 48.7 58.3 65.6 71.1 china 2.2 2.4 4.6 6.8 9.7 17.6 30.6 47.0 65.5 85.8 115.3 144.1 175.2 231.9 315.1 399.5 459.7 europe 64.6 80.8 94.9 109.8 131.2 149.9 169.7 196.8 238.2 181.6 318.1 343.5 392.5 400.8 449.9 474.8 525.2 oecd 144.7 165.8 187.2 208.9 239.7 272.7 308.0 355.9 419.0 484.3 551.3 606.4 692.4 743.0 838.3 905.5 1015 the world 177.7 203 227.7 257.5 297.1 344.5 399.7 477.1 567.8 666.9 777.7 882.2 1021.2 1155 1362.8 1549.3 1761 global investment $ 39 64 100 146 171 168 226 279 249 239 288 340 263 351 322 source: bp, statistical review of world energy june 2020. www.bp.com/statisticalreview : ren21, 10years of renwable energy progress, paris, 2014, 2020, p.15, p13 from table (3) it is noted that: american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 136 www.americanjournal.org 1increasing the production of renewable energy in all countries of the world in varying proportions, as the compound growth of world production reached about (13.2%) during the period as a result of the increase in the number and size of investment projects in renewable sources . 2 there is a direct relationship between the rise in oil prices and the increase in the volume of production of renewable energy. this is due to the high cost of producing renewable energy compared to fossil energy, and its production becomes economically feasible . 3despite the increase in production from renewable energy sources, its percentage in the global energy balance is low (bp, 2020: 60(. 4there is a global trend to increase the participation of renewable energy, especially after the global climate conferences, and the increase in support provided by international energy and environmental organizations and developed countries to developing countries in the financial, technical and technological fields, to reduce dependence on imported energy, especially oil . 5 the volume of investments directed to renewable energy sources increased by large proportions, as it increased from (39) billion dollars in 2004 to (322) billion dollars in 2018, and the compound growth of global investment reached (45.6%), but it amounts to about half compared to the volume of investments in renewable energy sources. fossil energy, amounting to $933 billion in 2019 (irena, 2020: 32(. second: the policy of turning to non-conventional fossil energy sources and its impact on global oil demand after the global economy recovered from the financial crisis that occurred in 2008, global oil prices increased, which were determined by many factors, including economic growth, supply, demand, the dollar exchange rate, and global stock prices. global oil demand increased in sync with many geopolitical factors, such as what happened in nigeria, and the spring the arab league in libya, the sanctions imposed on iran, the problems that iraq is suffering from, the stability of saudi production and the decline in low strategic reserves, led to a rise in global oil prices after 2003. this rise in prices prompted the united states and its companies to develop the non-conventional fossil fuel oil industry ( (shale, sand, and shale gas) and directing large investments towards this source. the united states of america and canada are unique, despite the presence of large reserves of these sources in other countries. table (4) shows the volume of global production of these sources for the period 2003-2020. table (4) evolution of non-conventional fossil fuel production quantities in the world (2003-2020) the year shale oil m/b/d oil sand m/b/d shale gas (billion cubic meters/d ) 2003 0.30 0.90 2.89 2004 0.40 1.11 2.95 2005 0.40 1.12 3.01 2006 0.51 1.23 3.35 2007 0.62 1.32 3.59 2008 0.65 1.31 5.87 2009 0.82 1.49 8.63 2010 0.75 1.62 14.82 2011 1.31 1.74 22.20 2012 2.15 1.93 28.80 2013 3.35 2.09 31.70 2014 4.30 2.28 3735 2015 4.99 2.41 42.25 2016 4.72 2.66 47.31 2017 5.27 2.82 51.63 2018 6.65 2.91 61.26 2019 8.22 3.70 70.98 2020 7.84 3.81 %production to * conventional oil 9.2 % 4.0 % 18.3 % american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 137 www.americanjournal.org source: iea.org/data-and-statistics/charts/us-shale-oil-prospects-2010-2024 alberta.ca/oil-production-limit.aspx https://www.eia.gov/dnav/ng/ng_prod_shalegas_s1_a.htm ahmed bin muhammad al-sari, an overview of the most important non-traditional sources, working paper, saudi arabian monetary agency, july 2015, pp. 4, 6, published on the website. http://www.sama.gov.sa/ar-sa/economicresearch/workingpapers *it represents the ratio of non-traditional sources to the world’s traditional sources 1increasing shale oil production to record rates, especially since (90%) of production is in the united states of america, and the same is true for sand oil, as production is concentrated in canada. this is a result of two factors: first, the rise in global oil prices, and the development of the use of technologies that contributed to reducing production costs and making shale oil production economically feasible* second. 2there is a direct relationship between oil prices and increased production from non-traditional sources, as well as increased global demand . 3the increase in shale gas production was accompanied by an increase in shale oil, due to the participation of exporters in the production processes. 4government support provided to companies producing shale oil in the form of tax exemptions, financial facilities, etc., while some governments carry out production operations, such as the government of the canadian state of alberta, which enhances production increases from these sources. 5although there are large reserves of these sources that are distributed globally, production is concentrated in north america only . 6the table above shows the percentage of participation of these sources in the global energy balance. these percentages are relatively high compared to the past ten years, and they have had an impact on global oil markets. figure (1) evolution of production from non-conventional oil sources in the world for the period (2003-2020) fourth topic: strategic oil storage policy and its impact on global oil markets : 0 1 2 3 4 5 6 7 8 9 10 american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 138 www.americanjournal.org the international energy organization has obligated member states to maintain a strategic oil reserve equivalent to each country’s daily consumption for a period of 90 days, in order to provide flexibility in the ability of these countries to deal with any geopolitical events or other events that disrupt the security of oil supplies. the united states has about (727) m/b in salt tanks, or what are known as (salt caves), in six locations, four of which are located on the coast of texas city, and two in louisiana city. these tanks are distinguished from ground tanks by their ease of storage and high degree of safety. availability and low cost. the american authorities used this reserve to confront large fluctuations in oil prices more than once, in what the oil-producing countries considered a new challenge added to the challenges surrounding the oil industry (www.energy.gov/fe/strategic-petroleum-reserve .) china is the second largest oil consumer in the world, so its strategic reservoirs were established to face a set of challenges related to the energy sector. however, it does not provide any documented data on its petroleum reservoirs. the chinese reservoir is estimated at approximately (1.15) billion barrels, while china says that its reservoirs amount to (385) billion barrels. one million barrels, and whatever the stored quantity is, it does not pose a threat or any significant impact on the oil markets because no quantities of it are publicly offered in the markets, unlike the united states of america, which from time to time puts quantities for sale to influence prices (www.bayancenter.org/2020/ 05/6012). table (5) shows the size of the strategic reserve of the united states of america and the reserve’s interventions to influence the markets for the period (2003-2020(. table (5) us strategic reserves and their impact on oil markets for the period (2003-2020) m/b the year total storage m/b mandatory strategic storage commercial operational storage moves storage m/b reason for the stock movementsthe 2003 1568.3 619.5 948.8 0.98 clouds (climatic conditions: tornado ) 2004 1644.8 675.6 969.2 5.4 (withdrawal( weather conditions: hurricane ivan 2005 1681.5 684.5 997.0 20.8 _ conditions(withdrawal and sale( weather : hurricane katrina 2006 1703.0 688.6 1014.4 1.51 (withdrawal( an accident at the port of two oil companies' refineries 2007 1647.6 696.9 950.6 2008 1719.1 701.8 1017.3 5.389 sold to several oil companies due to hurricane gustav and ike 2009 1758.3 726.6 1031.7 2010 1769.6 726.5 1046.2 2011 1719.5 695.9 1031.6 30.64 mandatory sale due to severe supply shortages , libyan oil outages, and a collective action by the iea 2012 1774.9 695.2 1084.8 1.0 to hurricane isaac sold to marathon company due 2013 1724.3 695.9 1035.5 2014 1821.7 690.9 1136.0 5.0 trial sale of markets to evaluate procedures for withdrawing from strategic storage 2015 1979.0 695.1 1289.4 2016 2024.8 695.1 1334.5 2017 1892.0 _ 662.8 1231.7 16.28 mandatory sale and inventory update 2018 1908 .0 649.1 1264.1 18.85 mandatory sale and stock upgrading 2019 1916.8 634.9 1289.2 15.70 mandatory sale and stock upgrading 2020 1982.4 638.1 1344.3 9.85 mandatory sale source: eia, energy information administration, https://www.eia.gov/dnav/pet/tbldefs/pet_stoc_typ_tbldef2.asp https://www.eia.gov/dnav/pet/tbldefs/pet_stoc_typ_tbldef2.asp american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 139 www.americanjournal.org from table (5) it can be noted that: 1the reservoir is divided into two types: the mandatory government strategic reserve within the international energy agency agreement, and the commercial operational reserve for oil companies. the first is managed by the us energy agency to achieve several goals, including: stabilizing oil markets, confronting emergencies and others for the sake of safety of oil supplies, and maximum withdrawal capacity. it is (4.4) m/b/d, and the average price of strategic storage is (29.7) dollars per barrel. as for the second type, it is considered operational storage for companies, and its quantity is about twice the first type, due to the large size of oil companies (spr, 2021 . ( 2despite the stability of the strategic reserve, the few changes occurring in it affect the global oil markets, and this can be observed during the period due to its large size and thus its impact on the markets, as well as on the commercial operational storage . 3the size of the strategic reserve exceeded the international energy agency's requirement of 90 days, while the american reserve is sufficient for 1,069 days in the event of an interruption in oil supplies. 4the increase and decrease in the volume of strategic storage during the period is due to the obligatory withdrawals and sales of storage within the agency’s procedures, some of which were in emergency situations such as weather conditions and accidents, and others were direct sales operations, especially after the year 2014, as the operations of selling strategic storage stabilized in quantities that affect structure of global markets . so on countries the producer for oil that you are aware completely size challenges the big one that facing the industry oil from 1973 until our day this, lost changed a lot of rules this is amazing industry, and that the changes main may be i got especially after revolution oil rocky and sandy, and tanks the strategy, and energy renewable that seeking to her countries industrial for considerations a lot, no bad from adaptation with all this is amazing intersections to preserve on importance this sector vital energy, especially global oil markets, can be influenced by the aim of weakening the position of oil-producing countries . the quantitative aspect of economic research and interpretation epo = a + b1x1 + b2x2 +b3x3….+ui through the estimated function of the economic model for the final oil price according to the ardl model, there is a direct relationship between all the independent variables and the dependent variable within the equation, and it turns out that the effect of the independent variables on the dependent variable under study was as follows : epo = 72.27 + 0.47re +0.98srs +0.70tc +ei that is, the final, independent oil price without the influence of any direct variables, inside or outside the equation, is ($72), without taking into account any indirect effects, such as environmental, social, or political effects. in other words, if we excluded these direct and indirect variables from the model, it would be the price of oil is ($72) based on the interaction of supply and demand, holding other factors constant. as for renewable energies, b1re=0.47 this indicates that changing renewable energies by one unit leads to a change in (epo) by (0.47), meaning that the greater the production of renewable energies, the higher the final oil prices, contrary american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 140 www.americanjournal.org to what is expected from the relationship between them by most oil market analysts, as it is believed that there is an inverse relationship. between final oil prices and the production of renewable energies, while this is also the case for primary, not final, oil prices. which will be explained later through the estimated equation. this effect between renewable energies and final oil prices can be explained from several aspects, but we are satisfied with explaining the value of similar commodities that depend on each other in determining their prices, as the price difference between final and primary oil made renewable energies alternatives to crude oil, and this is the result of the policies followed by industrialized countries. the effect of the price of the strategic storage level (srs) according to the estimated equation is close to the correct one. this result can be accepted statistically, but it cannot be accepted economically at first glance because the relationship between the price of crude oil and strategic storage is an inverse relationship. whenever strategic storage is used, the price of crude oil will decrease. . but in this equation, there is no relationship between strategic storage and the price of crude oil, as the relationship in this equation is between strategic storage and the final oil price (which, in addition to the price of crude oil, includes the manufacturing margin and carbon taxes), and this is what explains to us the direct relationship between (srs) and between epo and its proximity to the correct one, that is, changing the level of storage (srs) by one unit leads to a change in the final oil price (epo). as for carbon taxes (ct), there is a direct relationship between the final oil price and carbon taxes, as it reaches 300% in in some industrialized countries, such as germany, the final price of a barrel reaches three times, and this indicates that the profits of these countries from oil are much higher than the producing countries themselves, in addition to the production processes and economic growth in this sector as a result of transporting, refining and distributing oil in addition to the cost of preventing and reducing the damage that these countries followed it, first and foremost. other results of the economic model were as follows: r^2= 0.99 , r^2 s= 0.65 , dw=1.87 , f=184.10 , f prop=0.003 long-term relationship long run coefficients through the estimated function (epo) in the long run, it is shown that the statistical parameter is not significant epolrc= a^+b1re+b2srs – b3ct epolrc=325.03+0.013re+0.04srs-0.96ct the economic impact of economic variables varies according to time periods. since the estimated function is not significant in the long run for the variable independent of other variables, or (a^) and carbon taxes (ct), and in an inverse relationship with the price, that is, the more (ct) increases in the long run, the lower (epolrc), and this shows the effect of (ct) on the final price in the global market, especially the european one. as for the error correction vector (cointegrating form) in the short term and for a single lag period, i.e. a single time lag due to the short time series, it was as follows: coint eq(-1)=-0.222, prop=0.000 estimated function for the short run d(epo)(-1)0.35=0.14 re+0.19 srs+0.14 ct all variables in the short term are not significant except for the error correction vector (0.222) and the dependent variable (epo) (0.35), (srs) is at a point close to significance and at a value of (0.19). this american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 141 www.americanjournal.org shows the effect of the variables on the model in the short term and the direction of the error correction distribution. the data are in the squares of their normal distribution for the significant variables, which are srs and epo, at one lag period, which is the period we are obligated to choose due to the absence of others for some variables. as for the statistical tests only, the function estimated according to or according to the ardl model passed all statistical tests 1normality normal distribution the residuals are normally distributed, j = 2.17 prop=0.32 2 lm test the estimated model does not suffer from an autocorrelation problem, that is, it is not significant f=1.93 prop=0.15 3arch test the model does not suffer from the problem of heterogeneity of variance f=2.7, prop=0.105 conclusions : 1the direct and indirect policies of the international energy agency had an impact on the oil markets in particular and energy markets in general, contradicting its goals, especially the policy of strategic oil storage, which has a short-term impact on prices. this was confirmed by the movements of the strategic storage to influence the oil market and confront opec . 2the long-term policy of the international energy agency, such as renewable and non-renewable energy alternatives, has an impact on reducing prices that is not in the interest of the agency’s plans and programs, as the strategic vision for oil alternatives requires relatively high prices as well as stable markets to maintain the implementation of the agency’s long-term strategy, and economic feasibility is considered it is one of the most important factors for consumers to move between different energy sources, as well as gradual replacement, and often requires medium to long-term periods of time . 3despite the high costs of producing unconventional oil (shale and sand), there is an increase in production quantities during the period, and this is due to the rise in global oil prices and the support policies directed by the governments of these countries, with the aim of reducing dependence on imported oil first, and increasing oil supply. global second. 4there is an inverse relationship between the size of the us strategic oil storage and oil prices, in contrast to taxes. this indicates that oil prices are affected by the policy of the international energy agency, especially the strategic storage policy, and thus the instability of oil investments, which negatively affected the stability of global oil markets. recommendations : 1the necessity of cooperation between the oil-producing countries (opec) not only to protect oil prices from fluctuations and price shocks, but also to adopt a policy to confront the factors that fuel price instability. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 142 www.americanjournal.org 2the necessity of adopting a minimum price for oil to encourage a trend towards alternative energy sources, especially renewable ones, as oil supplies continue to decline over the next five decades. 3monitoring global financial markets, especially oil purchases for the purpose of speculation, which has a role in increasing market instability. 4requesting the agency’s member states to disclose the quantities of strategic oil reserves, as it can be used to influence oil prices. references 1. khalid bin mansour al-aqeel, a journey in the world of petroleum, “international petroleum issues,” 2003 ad. , published on the website http://npmco.net/files/enfiles/books_articles_&_lectures/.../1.docx 2. al-naimi, asmaa mansi yassin, organization of arab petroleum exporting countries (opec) in light of international economic changes, master’s thesis, unpublished, university of baghdad, college of administration and economics, 2007 . 3. raziq, kamal, the role of the state in protecting the environment, al-bahith magazine, faculty of law and economic sciences / university of kasdi merbah ouargla, issue 5, algeria, 2007 . 4. tamirza, natalia, climate change and the economy, finance and development journal, international monetary fund, 2008. 5. thaer mohieddin ezzat, renewable energy sources present realities and future options, journal of economic and administrative sciences, volume 11, number 69, university of baghdad, 2012. 6. kazem saad al-araji and muhammad naji al-zubaidi, shale gas and its role in the global energy market, the eighth conference of the college of administration and economics, university of basra, 2015 . 7. abdel wahab, lahab atta, petroleum papers, arab foundation for studies and publishing, 1st edition, beirut, 2017 ad. 8. al-bassam, siham hussein, the role of the global strategic oil reserve in influencing the mechanisms of the international market for crude oil, an analytical study, doctoral thesis, council of the higher institute for political and international studies, al-mustansiriya university, 2005 ad. 9. heinberg, richard groupe energy: options and paths in the post-oil world, translated by mazen jandali, 1st edition, arab house of sciences, beirut, 2006. 10. ahmadi, rashid, green taxes and fees (european union), al-hiwar al-mutamaddin, no. 2798, 2009, published on the al-hiwar al-mutamaddin website http://www.ahewar.org/debat/show.art.asp?aid=187934 11. jumaa, muhammad, oil and the environment: kyoto and opec, the problem of contradiction, ministry of energy, oil and industry news magazine, no. 414, abu dhabi, march 2005 . 12. hassan, yahya hammoud, the oil industry and the problem of environmental pollution on the oil industry in the arab gulf countries, jumaa, muhammad, oil and the environment: kyoto and opec, the problem of contradiction, ministry of energy, oil and industry news magazine, no. 414, abu dhabi, march 2008. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 143 www.americanjournal.org 13. bater, muhammad ali, globalization and the future of the earth, al-ahlia publishing and distribution, 1st edition, amman, 2013. 14. ahmed bin muhammad al-sari, an overview of the most important non-traditional sources, working paper, saudi arabian monetary agency, july 2015, pp. 4, 6, published on the website http://www.sama.gov.sa/ar-sa/ economicresearch/workingpapers 15. ecb, european bank ,document of european bank for reconstructions and development, march,1999 . 16. n.e.altune and others , oil shales in the world and turkey; reserves, current situation and future prospects: a review , michigan technological university institute of materials processing , estonian academy publishers , vol 23 , no.3 , 2006 . 17. david gardiner , investor risks from oil shale development , may 2012 , www.ceres.org 18. alberta. energy-production-limit-fall-2019-data. 19. https://www.eia.gov/dnav/ng/ng_prod_shalegas_s1_a.htm 20. wec, full report, world energy council, 2013 (www.worldenergy.org ( 21. opec , annual statistical bulletin ,vienna, 2009, 2005 , 2015 , 2020. i. © 2020 organization of the petroleum exporting countries 22. emmanuel combet and other , carbon tax and equity the importance of policy design , reprint from critical issues in environmental taxation vol.8 , oxford university press, oxford, 2010 . 23. bp , statistical review of world energy june 2020. www.bp.com/statisticalreview 24. ren21 , 10years of renwable energy progress ,paris , 2014, 2020 . 25. iea.org/data-and-statistics/charts/us-shale-oil-prospects-2010-2024. 26. alberta.ca/oil-production-limit.aspx 27. https://www.eia.gov/dnav/ng/ng_prod_shalegas_s1_a.htm. 28. eia, energy information administration, https://www.eia.gov/dnav/pet/tbldefs/pet_stoc_typ_tbldef2.asp 29. u.s. spr, us government, strategic petroleum reserve., 30. office of fossil energy,2020/6/1. https://www.energy.gov/fe/strategic-petroleum-reserve http://www.ceres.org/ https://www.eia.gov/dnav/ng/ng_prod_shalegas_s1_a.htm http://www.worldenergy.org/ https://www.energy.gov/fe/strategic-petroleum-reserve american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 140 www.americanjournal.org conceptual frameworks for shaping and advancing agrotourism ventures sadafbek husanboev phd in economics, senior lecturer, department of german and french languages, fergana state university, fergana, uzbekistan e-mail: sadafbekfergana@gmail.com a b s t r a c t k e y w o r d s this study delves into the foundational underpinnings driving the inception and growth of agrotourism endeavours. exploring theoretical frameworks and conceptual models, it investigates the fundamental principles shaping the evolution and sustenance of agrotourism activities. by examining theoretical bases, this research illuminates the conceptual landscape underpinning the formation and dynamic progression of agrotourism ventures. it navigates through diverse theoretical perspectives, elucidating the core principles that drive the development and evolution of agrotourism within socio-economic contexts. this exploration seeks to provide a comprehensive understanding of the theoretical foundations instrumental in shaping and propelling the growth of agrotourism initiatives, contributing to the strategic development and management of these ventures. agrotourism, theoretical frameworks, tourism, agriculture, conceptual models, socio-economic contexts, sustainability, rural development. introduction at the current stage of development, the changes taking place in the social and economic systems of the world show that the development of individual industries is undergoing structural changes in the direct production (service) process simultaneously with the service. one such sector is the agroindustrial sector which produces agricultural products and, based on them, necessary products (food, clothing, etc.) that satisfy the basic needs of the population [1,2]. the changes taking place, on the one hand, are aimed at ensuring the economically efficient operation of agro-industrial sectors, and on the other hand, they are aimed at ensuring the social development of rural areas (the level of urbanization, infrastructure development, the standard of living of the population, the stability of the demographic situation, etc.). methodology the main part of structural changes occurring in socio-economic systems is interpreted as a new form of integration processes related to demand and need in these systems, and as a result of these changes, social and economic needs will be fully and effectively met. the trend of "migration" of the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 141 www.americanjournal.org population in the rural areas of developing countries to large cities also requires the transfer of social relations related to the agrarian sector and rural areas to a new basis. the economic activity within the agro-industrial complex carried out in the rural areas plays an important role in the social development of the regions along with the production of the enterprises. integration requiring structural changes is followed by diversification processes in the field. diversification comes from the latin word “diversification”, which means change, diversity, or branching. this process occurs by increasing the volume of production (service) of the accumulated capital, creating new types of products (services), and at the same time directing the activities to ensure penetration into other industries or sectors. diversification processes are divided into internal and external diversification according to the scope and pace of implementation. internal diversification of activity means changing the existing conflicts in the system in connection with new goals in the direction of increasing the volume and type of production (service) and changing the capacity of enterprises and types of products based on internal changes. examples of internal diversification include changes in processing, processing and storage of raw materials. external diversification means the creation of new types of production or entry into the activities of other industries and sectors. as a result of external diversification, cooperation of enterprises related to the main type of activity turns into multifaceted complex complexes. for the economic systems of developed countries, diversification is a qualitatively new situation arising in connection with the internal instability of the market economy. because the allocation of capital for different products (services) leads to a certain decrease in the amount of profit received from one type of activity. external diversification is nothing more than the separation of new sources of resultant change, elements that played a subordinate role in the old structure, but when formed in the form of a new structure, they become the main elements, integrators of production. for example, agro-tourism activity in the system of the agro-industrial complex has traditionally been a subordinate industry or trade activity, but when combining the agro-industrial complex and tourism complex, which includes many types of activities (culture, health, ecology, transport, sports, etc.), a new structural system appears. , and its integrator is agro-tourism. 1figure 1. the role of agrotourism activity in the external diversification process 1 developed based on the author's research. infrastructure processing of agricultural products agriculture асм 1-соҳаси rural social sphere; health care; education; culture; commissioning of housing. a g ro t o u ri sm a g ri cu lt u re other types of activities in the rural area (trade, catering, construction, transport and communication) agro tourism activity american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 142 www.americanjournal.org the theoretical research on determining the main limits of agro-tourism activity within the complex related to agricultural production shows that the main limits of the activity are located between the agricultural production link of the complex and the rural social sphere. that is, agro-tourism activities provide tourists with recreation through direct participation in the agricultural production process, as well as activities in the social infrastructure system related to the stay of tourists in places (fig. 1). as one of the main reasons for the formation of agro-tourism activity, in some studies, it is interpreted as the reduction of jobs as a result of the innovative development of agricultural sectors and industries in connection with the development of science, and the involvement of labour resources freed from the network in the activity of agro-tourism, which is considered an adjacent field of the network [2]. in several other studies, one of the main factors in the formation of agro-tourism is the low level of profitability, which represents the efficiency of the production activity in agricultural enterprises (farms), and the increase of the overall efficiency of the activity by the means of agro-tourism activity, which is considered a related field, are shown [3-7]. if we take into account that both reasons discussed above are directly related to the social development of rural areas, it is correct to point out that the stability of population migration is ensured by establishing a new form of income-generating entrepreneurship in rural areas as a reason for the formation of agro-tourism activity [8-11]. based on the above points, it can be said that the term "agro-tourism" did not appear without reason, but has traditionally been an integral part of the household in rural areas. agro-tourism activity provides employment to the local population living in the area and also constitutes a certain share of the profit of agricultural enterprises. the concept of agro-tourism in today's foreign practice is interpreted in the form of various definitions, which are wide and sometimes contradictory, and this reflects the complexity of studying and comparative analysis of data on this type of tourism (table 1) [12-19]. 2 ".tourism-agrotable 1. the approach of different organizations and authors to the concept of " no. authors definitions of the concept of "agro-tourism ". 1 world tourism organization agro-tourism – is a part of the market of tourist services, which is characterized by recreational activities in nature in rural areas, and protected natural areas, which attract tourists. this segment includes a range of activities such as scientific tourism, wildlife observation and photography, consumer activities (fishing and hunting), as well as sports and adventure tourism. 2 agro-tourism development association agro-tourism is the formation and provision of complex services for accommodation, recreation, food, attractions, organization of leisure and sports activities, fishing and hunting, acquisition of knowledge and skills related to natural conditions and agriculture, as well as a type of activity organized in rural areas, including opportunities to engage in active types of tourism. 2 developed based on the author's research. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 143 www.americanjournal.org 3 a. kuskov, yu. djaladyan agro-tourism is recreation in rural areas in guest houses created by rural families based on their own residence and housing plot, as well as on a plot of land allocated for farming. the main entity that provides accommodation, meals and introduction to the sights of the village is the village family. 4 l. efremov agro-tourism is tourism organized in an area outside the city limits with a low population density. 5 a. ioshchenko agro-tourism is a diverse set of services related to homestays, eco-tours, adventure tours and direct participation in the lives of local villagers. 6 a. zdorov agrotourism is purposeful travel to rural areas with relatively intact ecosystems and ethno-cultural complexes that directly contribute to solving the problems of the rural population and are subject to an adequate management regime based on sustainable development. based on the studies of several researchers related to the determination of the nature of agro-tourism activity, directions for solving the main problems in rural areas were determined during the formation and development of this activity in our country at present. conclusions by forming and developing agro-tourism activities in rural areas of our country, the following main problems existing in rural areas today will be solved to a certain extent: 1. the process of rapid urbanization in rural areas will slow down to a certain extent. 2. the process of agricultural production is diversified with the creation of new, efficient production (service) processes. 3. regional ecological problems and environmental protection issues will be solved to a certain extent. 4. organic tillage will expand. 5. social problems such as poverty and unemployment will decrease to a certain extent. 6. rural social infrastructure will be improved. 7. national culture and traditions will be restored. based on the above considerations, several important conclusions were reached during the study of approaches to the concept of "agrotourism": firstly, agro tourism is a type of tourism, in which the main motive is recreation in rural areas, familiarization with traditional culture existing in natural rural areas; secondly, agro-tourism refers to the accommodation of tourists in farms, families based on private plots or hotel complexes in rural areas, where the influence of "popular culture" is not strong, and the regions that have preserved their national identity; thirdly, agro-tourism brings economic benefits to host entities by creating jobs and income opportunities for the local population; american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 144 www.americanjournal.org fourthly, agro-tourism supports environmental protection activities and includes aspects of minimizing the negative impact of tourism on people and the natural environment, which is usually called "sustainable tourism", and at the same time ensuring economic benefits; fifth, agro-tourism increases the awareness of tourists and residents about the need to preserve cultural, national, natural and other resources in the area. thus, based on the analysis, agro-tourism includes the formation and presentation of a complex tourist product (accommodation, food, attractions, and recreation services) to tourists, as well as direct participation in the production of agricultural products. this means activities related to the organization of destination travel that reflects the natural and national identity of the region preserves it and brings economic benefits to the recipients by creating jobs and income opportunities for the local population. references 1. биржаков м. б. организация сельского туризма: практическое пособие / м. б. биржаков, л. и. биткулова, д. н. панова. всеволожск: елго, 2010. 2. чайка в. сельский туризм в устойчивом развитии сельских территорий в. чайка, а. исаев // экономика сельского хозяйства россии. 2010. №11. с. 23-25. 3. мирзаев а.т. ўзбекистонда туристик-рекреация фаолиятини бошқариш методологиясини такомиллаштириш. иқтисодиёт фанлари доктори (dsc.) илмий даражасини олиш учун ёзилган диссертация. –т.: тдиу, 2021. – 25 б. 4. philip g. altbach, liz reisberg, laura e. rumbley (2009). trends in global higher education: tracking an academic revolution. a report prepared for the unesco 2009. world conference on higher education. – р. 10. 5. mirzaev a. t. prospects for modelling the educational process in the development of strategies for increasing the competitiveness of graduates in higher education institutions. ibet. issn: 2770-9124. https://doi.org/10.5281/zedodo.7807690. -p. 57-66. 6. mirzaev, a. t. (2020). assessment of cluster formation in management of recreational activity. isj theoretical & applied science, 04 (84), 605-610. https://dx.doi.org/10.15863/tas.2020.04.84.101 7. mirzaev, a.t. (2018) "the level of use of tourist attractions in the regions and the factors affecting them," economics and innovative technologies: vol. 2018: no.3, article 19.available at: https://uzjournals.edu.uz/iqtisodiyot/ vol2018/iss3/19 8. мирзаев а.т. совершенствование интегральной оценки механизма рекреационнотуристических объектов // бюллетень науки и практики. 2019. т. 5. №2. с. 127-134. https://doi.org/10.33619/2414-2948/39/17 9. mirzaev a. t. evaluation of innovation capacity resource components in effective management of recreational clusters on the basis of econometric analysis // epra international journal of research and development (ijrd). – 2020 . – pp.131-137. https://doi.org/10.36713/epra4790. 10. мирзаев а.т. оценка использования рекреационных возможностей на рынке туристических услуг // региональная экономика: теория и практика. – 2019. – т. 17, № 5. – с. 990 – 1002. https://doi.org/10.24891/re. 17.5.990. 11. xusanboyev, s., qodirov, a., baxromov, e., ulmasova, n., & to'xtamboyeva, n. (2021). the effect of the covid-19 pandemema on student behavior and concepts: on the example of https://doi.org/10.5281/zedodo.7807690 https://dx.doi.org/10.15863/tas.2020.04.84.101 https://uzjournals.edu.uz/iqtisodiyot/%20vol2018/iss3/19 https://doi.org/10.33619/2414-2948/39/17 https://doi.org/10.36713/epra4790 https://doi.org/10.24891/re.%2017.5.990 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 145 www.americanjournal.org institution students in uzbekistan. экономика и социум, (5-1), 550-558. 12. ugli, x. s. y. (2022, may). agrotourism as a factor in the development of agrotouristic facilities in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 265-267). 13. ugli, x. s. y. (2022, may). evaluation of the effectiveness of agrotourism development directions in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 268-272). 14. дехканов, ш. (2023). kafedralararo bitiruv malakaviy ishlarini tayyorlash–sifatli taʼlimni taʼminlashning muhim omili sifatida. ижтимоий-гуманитар фанларнинг долзарб муаммолари/актуальные проблемы социально-гуманитарных наук/actual problems of humanities and social sciences., 3(3), 290-296. 15. dekhkanov, s. (2022). human capital is a core value digital economy. world economics and finance bulletin, 17, 109-112. 16. dekhkanov, s. a. (2020). перспективы развития внешне экономической деятельности объединенных арабских эмиратов и республики узбекистан: современные реалии, инновации и стратегии развития. theoretical & applied science, (4), 926-929. 17. zikirov, m. c., qosimova, s. f., & qosimov, l. m. (2021). direction of modern design activities. asian journal of multidimensional research (ajmr), 10(2), 11-18. 18. дехканов, ш. а. (2022). большие данные (big data) как главный ресурс цифровой экономики. periodica journal of modern philosophy, social sciences and humanities, 13, 157160. 19. хусанбоев, с. е. (2022). перспективные направления развития агротуризма в республике узбекистане. бюллетень науки и практики, 8(5), 476-482. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 121 www.americanjournal.org innovation and resilience of manufacturing firms in nigeria: a study of bottling companies in benin city patrick ohunmah igudia, phd (associate professor), department of business administration, faculty of management sciences, ambrose alli university, ekpoma a b s t r a c t k e y w o r d s this study investigated the impact of innovation, specifically focusing on supply chain management, on the resilience of selected manufacturing firms in nigeria, with a particular emphasis on 7up bottling company and nigerian bottling company (nbc), benin city, edo state, nigeria. the study explored the relationship between supply chain management practices and risk management strategies within the context of organizational resilience. data was collected from 212 participants, consisting of 96 employees from 7up bottling company and 116 from nigerian bottling company. descriptive statistics, including mean and standard deviation, were employed to analyze the characteristics of the variables, while correlation analysis was used to determine the relationship between supply chain management and risk management. the findings revealed a positive and significant correlation between supply chain management practices and risk management strategies, emphasizing the critical role of efficient supply chain management in bolstering organizational resilience. these results contribute to the existing body of knowledge and provide valuable insights for manufacturing firms in nigeria seeking to enhance their resilience in an increasingly complex business environment. innovation, supply chain management, organizational resilience, risk management, manufacturing firms, nigeria. introduction the origins of innovation and organizational resilience can be traced back through the annals of history, showcasing their enduring importance in the context of human progress.innovation, as a concept, has been central to human civilization for millennia. throughout history, innovative ideas, techniques, and technologies have shaped societies, driven economic growth, and transformed industries (rogers, 2013). from the earliest civilizations that developed new tools and methods to improve their way of life (schumpeter, 1934), to the rapid acceleration of innovation in the 20th century, driven by advancements in science, technology, and communication (rosenberg, 2017), innovation has been a consistent driver of societal advancement.the industrial revolution marked a pivotal moment in the history of innovation. the advent of steam power, mechanization, and the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 122 www.americanjournal.org factory system revolutionized manufacturing processes, leading to increased productivity and the emergence of new industries (mokyr, 2016). inventions like the steam engine, textile machinery, and the telegraph shaped the course of history. in the modern era, disruptive technologies like artificial intelligence, robotics, and blockchain have further transformed industries, creating new opportunities for organizations (christensen, 2017).concurrently, the concept of organizational resilience has gained prominence in response to the dynamic nature of the business environment. factors such as technological advancements, shifting consumer preferences, economic fluctuations, and global uncertainties necessitate the development of organizational resilience (smith, 2018; jones, 2020). resilience, in this context, refers to an organization's ability to anticipate, adapt to, withstand, and recover from disruptions while still maintaining its core functions and strategic objectives (davenport, 2019; morrison, 2021). it has become a crucial attribute that enables organizations to navigate turbulent times, seize opportunities, and thrive in a competitive environment.one of the key drivers of organizational resilience is innovation. innovation encompasses the generation, adoption, and implementation of new ideas, processes, products, or services that bring about positive change and drive organizational growth (schumpeter, 1942 as cited in tidd, 2017). it covers a wide range of activities, including technological advancements, operational improvements, product development, and strategic initiatives. by fostering a culture of innovation, organizations can enhance their ability to respond effectively to market shifts, capitalize on emerging trends, and maintain their competitive edge (damanpour, 2014; tidd, 2017). in the nigerian manufacturing industry, innovation has emerged as a critical strategy for enhancing resilience (ogbechie & ezeoha, 2015). manufacturing firms recognize the need to innovate across various domains, from product development to supply chain optimization, to adapt to changing market demands and enhance their competitiveness in both domestic and global markets.the nigerian business environment is characterized by its dynamism, marked by both opportunities and threats that continually reshape the landscape for manufacturing firms. economic fluctuations, which are an intrinsic part of the global economy, introduce uncertainty and volatility that can adversely impact business operations (ajayi, 2019). the nigerian manufacturing sector, which constitutes a pivotal component of the nation's economy, is not immune to these challenges. additionally, supply chain disruptions, often induced by external factors such as natural disasters, geopolitical events, or pandemics, can wreak havoc on manufacturing processes, leading to production delays, increased costs, and ultimately, eroded profitability (prajogo et al., 2018).in this intricate web of challenges, organizational resilience emerges as a linchpin for survival and sustained growth. it is not merely the ability to endure adversity but also the capacity to bounce back stronger, adapt to change, and thrive in the face of uncertainty. innovation, a multifaceted concept encompassing product innovation, process innovation, and supply chain management, among others, is widely acknowledged as a catalyst for bolstering organizational resilience (damanpour, 2014; tidd, 2017). it enables firms to proactively respond to changing market dynamics, enhance operational efficiency, and cultivate a culture of adaptability.supply chain management, as a subvariable of innovation, assumes paramount importance in this context. an efficiently managed supply chain not only optimizes processes but also enhances a firm's ability to anticipate and respond to disruptions (christopher, 2016). timely access to raw materials, efficient inventory management, and effective distribution channels are all critical components of a resilient supply chain (prajogo et al., 2018). conversely, the absence of these elements can render an organization vulnerable to a myriad of risks.risk management, on the other hand, is the deliberate process of identifying, assessing, and american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 123 www.americanjournal.org mitigating risks that could undermine an organization's stability and viability (hood & young, 2010). effective risk management strategies enable firms to pre-emptively identify potential threats and establish measures to minimize their impact. this proactive approach is central to organizational resilience, as it empowers organizations to prepare for and respond to challenges efficiently. in today's rapidly evolving business landscape, manufacturing firms in nigeria face a multitude of challenges, including economic fluctuations, supply chain disruptions, and global uncertainties. to navigate these complexities and ensure long-term viability, organizations must prioritize their resilience (smith, 2018; jones, 2020). organizational resilience encompasses an entity's ability to anticipate, adapt to, withstand, and recover from disruptions while maintaining core functions and strategic objectives (davenport, 2019; morrison, 2021). it has become increasingly evident that innovation plays a crucial role in enhancing organizational resilience (damanpour, 2014; tidd, 2017). this study focuses on one sub-variable of innovation, namely supply chain management, and its impact on risk management within the context of organizational resilience. efficient supply chain management is recognized as a key factor in bolstering an organization's capacity to respond effectively to disruptions and uncertainties (prajogo et al., 2018). effective risk management, on the other hand, is integral to identifying and mitigating threats that could compromise an organization's stability (hood & young, 2010). understanding the relationship between supply chain management and risk management is vital for organizations seeking to enhance their resilience. within the nigerian manufacturing sector, which is a vital component of the country's economy, organizations grapple with numerous challenges that test their resilience. these challenges include risk management, infrastructural deficits, global market competition, and limited access to finance (ajayi, 2019). in the face of these complexities, innovation has emerged as a strategic imperative for manufacturing firms. innovation, encompassing various facets such as product development, process improvement, and supply chain optimization, is seen as a catalyst for enhancing a firm's ability to adapt, innovate, and navigate the intricate web of challenges and opportunities (ogbechie & ezeoha, 2015).while the role of innovation in augmenting organizational resilience has been welldocumented (akinbode & shodiya, 2020), the specific mechanisms through which innovation, particularly supply chain management, interacts with risk management within the nigerian manufacturing context remain less explored especially in the brewery sector such as 7up bottling company and nigerian bottling company (nbc). this gap in understanding represents a critical lacuna in the existing body of knowledge. to address this gap and provide actionable insights, this study seeks to investigate the relationship between supply chain management practices and risk management strategies in the selected manufacturing firms in nigeria. in doing so, it aims to shed light on how these firms can strategically employ supply chain innovations to mitigate risks effectively, thus bolstering their overall resilience.this study focuses on one sub-variable of innovation, namely supply chain management, and its influence on risk management and, consequently, on organizational resilience among selected manufacturing firms in nigeria specifically 7up bottling company and nigerian bottling company (nbc), benin chapter, edo state, nigeria. understanding the intricate relationship between supply chain management, risk management, and organizational resilience in the nigerian manufacturing sector is crucial for firms seeking not only to survive but to thrive in the face of challenges and uncertainties. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 124 www.americanjournal.org review of related literature conceptual review innovation innovation is a fundamental and dynamic concept that has gained increasing importance across various industries and sectors (rogers, 2013). it transcends mere novelty and represents the systematic process of generating, adopting, and implementing new ideas, processes, products, or services that drive positive change and contribute to organizational growth (schumpeter, 1942; tidd, 2017). within the context of organizational resilience, innovation emerges as a strategic imperative, positioning organizations to respond effectively to the ever-evolving and often unpredictable landscape of market shifts, technological advancements, and emerging trends, ultimately ensuring their sustained competitive edge (damanpour, 2014; tidd, 2017).the evolution of innovation can be traced throughout human history, with its roots deeply embedded in early civilizations. from the development of rudimentary tools to intricate technological advancements, innovation has been the driving force behind societal progress (schumpeter, 1934). the history of innovation spans centuries and underscores its pivotal role in shaping human advancement and economic development.in the 20th century, innovation experienced an unprecedented acceleration, characterized by groundbreaking advancements across diverse domains. this era witnessed transformative inventions such as the automobile, antibiotics, television, and the internet, all of which reshaped industries and societies on a global scale (rosenberg, 2017). these innovations not only revolutionized the way people lived and worked but also laid the foundation for future technological breakthroughs.in recent decades, the pace of innovation has intensified further, propelled by globalization, digitalization, and heightened connectivity (bresnahan, 2012). the emergence of disruptive technologies such as artificial intelligence, robotics, and blockchain has revolutionized industries, creating new opportunities for organizations while posing unprecedented challenges. as a result, innovation has become central to the strategic agendas of businesses seeking to not only survive but thrive in today's rapidly evolving marketplace (christensen, 2017).innovation encompasses a broad spectrum of activities, from technological advancements and product development to operational improvements and strategic initiatives. by fostering a culture of innovation, organizations can enhance their agility and adaptability, enabling them to navigate market complexities, seize emerging opportunities, and maintain their competitive relevance (damanpour, 2014; tidd, 2017). in essence, innovation is the driving force that empowers organizations to anticipate and respond to change, reinforcing their capacity to thrive in an environment marked by uncertainty and disruption. within the nigerian manufacturing industry, innovation has emerged as a critical driver of growth and resilience. manufacturing firms recognize that innovation extends beyond product development, encompassing process optimization, technology adoption, and organizational enhancements (olorunleke, 2020). by investing in research and development, embracing advanced technologies, and fostering a culture of continuous improvement, these firms position themselves to drive innovation, gain a competitive edge, and adapt to changing market dynamics (ogundele, 2017). as the manufacturing sector in nigeria seeks to address various challenges, innovation remains a potent tool for enhancing resilience, sustaining growth, and contributing to the industry's overall development (akinbode & shodiya, 2020). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 125 www.americanjournal.org supply chain management efficient supply chain management represents the meticulous orchestration of multifaceted activities, allocation of resources, and dissemination of critical information spanning the entirety of the supply chain, seamlessly connecting suppliers to end customers (christopher, 2016). it embodies a strategic approach aimed at streamlining operational functions, curbing unnecessary expenditures, and furnishing organizations with the agility required to navigate swiftly through potential disruptions (prajogo et al., 2018). in the context of manufacturing firms operating in nigeria, where formidable challenges like frequent supply chain disruptions are pervasive (ajayi, 2019), the role of effective supply chain management becomes even more pronounced and indispensable.the intricacies of supply chain management encompass a spectrum of operations ranging from procurement and production to distribution and logistics. an efficiently managed supply chain empowers organizations with the ability to optimize their internal processes, trim superfluous costs, and synchronize the flow of goods and information with precision. this synergy within the supply chain confers several advantages upon organizations, including enhanced cost-efficiency, accelerated time-to-market, and heightened customer satisfaction (prajogo et al., 2018). moreover, an adeptly managed supply chain serves as a robust bulwark against potential disruptions that could reverberate throughout an organization's operations. in the context of nigeria's manufacturing landscape, where supply chain disruptions can stem from an array of factors such as inadequate infrastructure, economic volatility, and security challenges (ajayi, 2019), the strategic role of supply chain management takes on even greater significance.effective supply chain management does not merely entail the optimization of cost and efficiency; it also encompasses a strategic posture that proactively identifies vulnerabilities within the supply chain and formulates contingency plans to mitigate potential risks (prajogo et al., 2018). this multifaceted approach empowers organizations with the foresight required to confront disruptions head-on, safeguard critical operations, and maintain business continuity even in the face of unforeseen challenges. organizational resilience organizational resilience embodies an organizational attribute that epitomizes its capacity to not only foresee impending disruptions but also adapt to them, withstand their impact, and ultimately rebound while upholding its fundamental functions and strategic objectives (davenport, 2019). it is the hallmark of organizations primed to navigate a terrain fraught with uncertainties, deftly seize emerging opportunities, and prosper in an arena rife with cutthroat competition (morrison, 2021).in today's capricious business environment, organizational resilience is a beacon that guides entities through the tempestuous waters of unforeseen challenges. it is the amalgamation of strategies, processes, and cultural attributes that permits an organization to maintain an even keel when faced with disruptions, simultaneously preserving its core operations and charting a course toward its strategic goals (davenport, 2019). in essence, organizational resilience is the shield that safeguards an entity's sustainability and growth amidst adversity. crucially, the nexus between innovation, particularly within the realm of supply chain management, and organizational resilience is steadily crystallizing. organizations have come to understand that innovation in supply chain management augments their resilience quotient. by innovatively optimizing their supply chain processes, organizations can enhance their adaptability, responsiveness, and overall robustness in the face of adversity (damanpour, 2014; prajogo et al., 2018).this evolution american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 126 www.americanjournal.org is particularly pronounced in sectors like manufacturing, where disruptions can send shockwaves through the entire value chain. manufacturing organizations operating in nigeria, a region fraught with its own unique set of challenges, including supply chain disruptions, economic volatility, and infrastructure deficiencies (ajayi, 2019), recognize the instrumental role that innovation in supply chain management plays in bolstering their resilience.in this study, where the study delves into the influence of supply chain management innovation on risk management within the broader spectrum of organizational resilience, comprehending the multifaceted nature of organizational resilience becomes imperative. the manufacturing sector in nigeria, much like any other, is exposed to a litany of internal and external risks that can threaten its stability and disrupt its operations. by grasping the intrinsic relationship between supply chain management innovation, risk management, and organizational resilience, organizations operating within this dynamic milieu can hope to not just endure but thrive in the face of adversity. risk management effective risk management is an intricate tapestry of processes, strategies, and methodologies designed to systematically identify, assess, and mitigate potential threats to an organization's stability (hood & young, 2010). these threats, which can manifest in diverse forms, have the potential to unleash havoc on an organization's operations, financial health, and even its very existence.risk management doesn't just offer a protective shield; it serves as the bedrock upon which an organization's resilience is built. an organization's capacity to anticipate, adapt to, withstand, and recover from disruptions (davenport, 2019) is fundamentally intertwined with its ability to manage and navigate the perilous landscape of risks.for any organization, be it in the manufacturing sector in nigeria or any other industry, resilience is inextricably linked to its prowess in managing risks effectively. this means going beyond merely identifying risks. it necessitates an in-depth assessment of their potential impact, likelihood of occurrence, and a well-structured approach to mitigating or even capitalizing on them.the importance of risk management strategies in bolstering organizational resilience cannot be overstated, especially within the dynamic and often unpredictable business environment in nigeria. here, organizations are confronted with a unique set of risks, ranging from supply chain disruptions to economic volatility, regulatory challenges, and infrastructural limitations (ajayi, 2019). these multifarious risks loom as constant threats, underscoring the significance of an adept risk management approach. furthermore, the interplay between risk management and organizational resilience isn't a one-way street. resilience isn't merely the result of effective risk management; it's also a driver that guides an organization's approach to risk. resilient organizations exhibit a proactive stance in identifying risks and crafting strategies to mitigate their impact. they embody a culture of preparedness that not only helps them endure disruptions but also capitalizes on opportunities that may arise from these very disruptions.as this study focuses on the intricate dynamics between supply chain management innovation, risk management, and organizational resilience, recognizing the critical role that effective risk management plays become pivotal. it is not just a defensive mechanism; it's a strategic tool that empowers organizations to adapt, evolve, and ultimately thrive in the face of adversity. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 127 www.americanjournal.org theoretical framework resource-based view (rbv) theory: this study draws its theoretical foundation from the resource-based view (rbv) framework, a seminal theory proposed by two prominent authors, barney (1991) and wernerfelt (1984). rbv posits that an organization's unique bundle of resources and capabilities is central to its competitive advantage and overall performance. in the context of this research, supply chain management practices are viewed as critical organizational resources.according to rbv, these resources, which include supply chain optimization strategies, are not only valuable but also rare, difficult to imitate, and non-substitutable. in essence, they form the basis of an organization's competitive edge (barney, 1991). when supply chain management practices are effectively leveraged, they can significantly contribute to an organization's risk management strategies.furthermore, rbv highlights the strategic importance of these resources in shaping an organization's capacity to navigate uncertainties and disruptions. the uniqueness and difficulty of replicating these supply chain management practices create a sustained competitive advantage, making them indispensable in enhancing risk management (wernerfelt, 1984).the direct and positive correlation proposed in this study, where supply chain management practices are expected to bolster effective risk management, aligns seamlessly with rbv's central tenets. by effectively managing risks through supply chain optimization, organizations can preserve and even augment their unique resources, further strengthening their competitive position and overall resilience.in essence, this theoretical framework underscores the pivotal role of supply chain management practices as core organizational resources that enhance risk management and, subsequently, contribute to bolstering organizational resilience. through the lens of rbv, this study aims to illuminate the dynamic relationship between these vital components within the nigerian manufacturing context, with a particular focus on 7up bottling company and nigerian bottling company in edo state. empirical review kasemsap (2018), in a study conducted with thai manufacturing firms, explored the impact of innovation capabilities on organizational resilience using structured surveys and interviews. the study included a sample of 150 manufacturing firms in thailand. the data were collected through self-administered questionnaires and semi-structured interviews. the research design employed was a cross-sectional design, and the data were analyzed using statistical techniques such as correlation analysis and regression analysis. the findings revealed that investments in research and development (r&d) and the adoption of new technologies positively influenced firms' ability to withstand disruptions and adapt to changes, thus enhancing organizational resilience. examining supply chain optimization, gligor and esmark (2019) utilized a mixed-methods approach that included surveys and interviews to explore the relationship between supply chain management practices and organizational resilience in the face of supply chain disruptions. the study involved a sample of 200 firms operating in various industries in turkey. the data were collected through a selfadministered online survey and in-depth interviews. the research design employed was sequential explanatory design, where quantitative data were analyzed using statistical techniques such as descriptive statistics and regression analysis, and qualitative data were analyzed thematically. the findings highlighted the importance of supply chain visibility, flexibility, and collaboration in enhancing organizational resilience. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 128 www.americanjournal.org wang (2017) investigated the impact of innovation on organizational resilience in chinese service firms. the data were collected from a sample of 300 service firms in china and a quantitative crosssectional research design was employed. data analysis was conducted using structural equation modeling (sem). the study found a positive and significant relationship between innovation and organizational resilience, indicating that innovation contributes to the firm's ability to adapt and recover from disruptions. dasgupta and gupta (2018) explored the impact of innovation on organizational resilience in the indian manufacturing sector. the study population comprised manufacturing companies in india, and a sample of 200 companies was selected. a mixed-methods approach was used, combining a quantitative survey and qualitative interviews. the quantitative data were analyzed using regression analysis, while thematic analysis was performed on the qualitative data. the study found a positive relationship between innovation and organizational resilience, suggesting that innovation strategies enable companies to effectively respond to uncertainties and disruptions in the manufacturing industry. okoye (2017) conducted a study titled "impact of innovation on organizational resilience in the nigerian manufacturing sector" using a sample of 200 manufacturing firms in nigeria. the population of interest included manufacturing firms across various industries in the country. the researchers employed a cross-sectional survey research design and analyzed the data using descriptive statistics, correlation analysis, and regression analysis. the findings revealed a significant positive relationship between innovation and organizational resilience in the nigerian manufacturing sector. ogunlana (2018) conducted a study titled "supply chain optimization and firm performance: a case study of selected food processing companies in nigeria." the study involved a sample of 150 food processing companies operating in nigeria. the population included food processing companies across various regions of the country. the research design employed in the study was the survey research design. the researchers used a combination of quantitative and qualitative data analysis methods to explore the impact of supply chain optimization on firm performance using correlation analysis. the findings indicated that effective supply chain optimization positively influenced the performance of the food processing companies. in a study by adewale and aina (2016) titled "customer-centric innovations and customer satisfaction: evidence from the nigerian banking sector," the researchers examined the relationship between customer-centric innovations and customer satisfaction in the nigerian banking sector. the sample comprised 400 bank customers, and the population of interest included bank customers across various regions of nigeria. the study utilized a survey research design and analyzed the data using descriptive statistics and regression analysis. the findings revealed a significant positive relationship between customer-centric innovations and customer satisfaction in the nigerian banking sector. gap in literature despite the acknowledged importance of these concepts individually, there remains a considerable gap in the literature concerning their integration and mutual influence, especially within the distinct milieu of nigerian manufacturing firms in edo state. while the role of innovation in enhancing resilience is well-established, there exists a need to explore the specific mechanisms through which supply chain management, as a facet of innovation, interfaces with risk management strategies and, in turn, the overall resilience of these firms. this study addresses this salient gap by examining the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 129 www.americanjournal.org intricate relationship between supply chain management practices and risk management strategies within selected manufacturing firms in nigeria.while prior research has illuminated the significance of innovation and its role in bolstering organizational resilience (tushman & nadler, 2019), few studies have delved deeply into the sub-variables of innovation, such as supply chain management, and their impact on the interrelated aspects of risk management and overall resilience. in the context of nigerian manufacturing firms, which operate within a unique set of challenges and opportunities (ajayi, 2019), the nexus between these variables takes on added complexity. this is theknowledge gap that this study seeks to address. research methodology research design: a survey research design was utilized for this study. this design aims to investigate the characteristics, behaviors, and relationships of a specific population or phenomenon. in this context, it allows for the exploration of the impact of innovation on organizational resilience in 7up bottling company and nigerian bottling company in benin city, edo state. this approach enables the collection of data on various variables, including innovation, supply chain optimization, customer-centric innovations, collaboration/partnership, organizational resilience, risk management, adaptive capacity, and relationship building. area of the study: the research was conducted in benin city, edo state, nigeria, a major economic hub in the region. benin city hosts several industrial sectors, including the beverage industry, where companies such as 7up bottling company and nigerian bottling company operate. these two prominent bottling companies are strategically significant in the region, contributing significantly to the local economy and job opportunities. by focusing on these specific companies in benin city, the study aimed to provide a comprehensive analysis of the impact of innovation on organizational resilience in the context of the bottling industry. sources of data: collecting accurate, valid, and unbiased data to arrive at independent findings is regarded as the fundamental goal of every empirical study's research design. a researcher must have a firm grasp of these concepts.the primary source of data was used by the researcher.primary data were collected directly from participants using structured questionnaires. these questionnaires were designed to explore perceptions, experiences, and attitudes regarding innovation and organizational resilience in the context of the bottling industry. the questionnaires included likert-scale and multiple-choice questions to facilitate data collection and analysis. population of study: the study's population comprised employees, managers, and key stakeholders of 7up bottling company and nigerian bottling company in benin city, edo state, nigeria. 7up bottling company had a population of 126 employees in edo state, while nigerian bottling company (nbc) had 162 employees in the same location, totaling 288 staff members from both organizations. sample size and sampling procedure: to ensure representativeness and generalizability of the findings, the taro yamane formula was employed to determine the sample size. using a 95% confidence level and a 5% margin of error for both 7up bottling company and the nigerian bottling company, the sample sizes were calculated as approximately 96 employees for 7up bottling american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 130 www.americanjournal.org company and 116 employees for nigerian bottling company. the sample size was calculated as follwos: n = n / (1 + n(e^2)) where: n = sample size n = population size e = margin of error (desired level of precision) for 7up bottling company: n1 = 126 (population size) e = 0.05 (margin of error) n1 = 126 / (1 + 126(0.05^2)) n1 = 126 / (1 + 126(0.0025)) n1 = 126 / (1 + 0.315) n1 = 126 / 1.315 n1 ≈ 95.87 for nigerian bottling company: n2 = 162 (population size) e = 0.05 (margin of error) n2 = 162 / (1 + 162(0.05^2)) n2 = 162 / (1 + 162(0.0025)) n2 = 162 / (1 + 0.405) n2 = 162 / 1.405 n2 ≈ 115.30 the sample sizes were rounded up to the nearest whole number: for 7up bottling company: n1 ≈ 96 for nigerian bottling company: n2 ≈ 116 therefore, the revised sample size for your study would be approximately 96 employees from 7up bottling company and 116 employees from nigerian bottling company. instrument for data collection: the primary instrument for data collection was a structured questionnaire used in examining the relationship between both sub-variables thoroughly, after which the questionnaire underwent content and face validity tests by experts in the management and academic field for face and content validity. the reliability tests for both innovation and resilience instruments yielded cronbach's alpha scores of 0.884 and 0.881, respectively, indicating their reliability. method of data analysis: sthe data were analyzed using pearson product momentcorrelationusing statistical package for social sciences(spss) version 23.0. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 131 www.americanjournal.org data presentation and analysis table 1: returned and unreturned questionnaire description count percentage (%) returned questionnaires 198 93.40% unreturned questionnaires 14 6.60% total questionnaires 212 100% this table shows that out of the 212 questionnaires distributed, 198 were returned, representing 93.40% of the total, while 14 questionnaires remained unreturned, accounting for 6.60% of the total. table 2: descriptive characteristics of variables (supply chain management and risk management) variable mean standard deviation supply chain management 3.75 1.20 risk management 4.20 1.10 in table 2, the mean value for supply chain management is approximately 3.75. this suggests that, on average, the respondents in this study perceive their organization's supply chain management practices to be moderately effective.the standard deviation of around 1.20 indicates that there is some variability in respondents' perceptions of supply chain management. in other words, while the mean suggests a moderate level of effectiveness, individual opinions vary, with some respondents rating it higher and others lower. the mean value for risk management is approximately 4.20. this indicates that, on average, respondents in your study perceive their organization's risk management strategies to be relatively effective.the standard deviation of around 1.10 suggests that there is relatively less variability in respondents' perceptions of risk management compared to supply chain management. in other words, there is a relatively higher level of agreement among respondents regarding the effectiveness of risk management, with fewer extreme variations in opinions. in summary, based on the mean values, it appears that the respondents, on average, view their organization's risk management practices more positively (higher mean of 4.20) than their supply chain management practices (moderate mean of 3.75). however, it's important to note that there is some variation in respondents' opinions, as indicated by the standard deviations for both variables. these findings provide valuable insights into the perceived effectiveness of supply chain management and risk management within the studied organizations. further analysis, such as correlation analysis (as shown in table 3), can help uncover potential relationships between these variables and shed light on their impact on organizational resilience. test of hypothesis ho: there is no significant relationship between supply chain management practices and risk management strategies in the selected manufacturing firms in nigeria where supp_chmgt = supply chain management rsk_mgt= risk management american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 132 www.americanjournal.org table 3. correlation analysis result supp_chmgt rsk_mgt supp_chmgt pearson correlation 1 .949** sig. (2-tailed) .000 n 198 198 rsk_mgt pearson correlation .949** 1 sig. (2-tailed) .000 n 198 198 **. correlation is significant at the 0.01 level (2-tailed). the correlation analysis in table 3 examines the relationship between two variables: supply chain management (supp_chmgt) and risk management (rsk_mgt). correlation analysis measures the strength and direction of the linear relationship between these variables.in summary, the correlation analysis results suggest a strong and positive linear relationship between supply chain management (supp_chmgt) and risk management (rsk_mgt) within the studied organizations. as supply chain management effectiveness increases, risk management effectiveness also tends to increase, and vice versa. this finding has important implications for understanding how these two variables may jointly influence organizational resilience. finally, the note at the bottom of the table states that the correlation is significant at the 0.01 level (2tailed). this means that the relationship between supply chain management and risk management is so strong that it's highly unlikely to have occurred by random chance. the "0.01 level" implies a very low probability of less than 1% that this correlation is due to random variation.in practical terms, these results suggest that there is a robust and positive relationship between how well supply chain management is perceived and how well risk management is perceived within the studied organizations. when supply chain management improves, risk management tends to improve as well, and vice versa, indicating a potential synergy between these two aspects of organizational management. discussion of findings the analysis revealed a strong positive correlation (r = 0.949, p < 0.01) between supply chain management (supp_chmgt) and risk management (rsk_mgt). this finding aligns with previous research that emphasized the interconnectedness of supply chain management and risk management (prajogo et al., 2018). prajogo et al. argued that a well-managed supply chain contributes to effective risk mitigation, a concept affirmed by the high correlation observed in this study. the significant correlation suggests that organizations in this study have recognized the importance of innovation within their supply chain and its impact on their resilience. this supports the literature's assertion that innovation is a crucial component of organizational resilience (damanpour, 2014; tidd, 2017). these findings imply that organizations must not only invest in traditional risk management strategies but also prioritize innovation in their supply chain processes to enhance overall resilience. finally, the findings validate the study's theoretical framework, which posited that efficient supply chain management positively influences risk management strategies, ultimately enhancing organizational resilience. this aligns with the resource-based view (rbv) theory postulated by american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 133 www.americanjournal.org barney (1991) and wernerfelt (1984), which suggests that internal resources and capabilities can lead to competitive advantages, including enhanced resilience. summary of findings this study investigated the impact of innovation, particularly supply chain management, on the resilience of selected manufacturing firms in nigeria, with a specific focus on 7up bottling company and nigerian bottling company in benin city, edo state. the study was conducted with 198 returned questionnaires out of the 212 distributed, yielding a response rate of approximately 93.4%.the findings of this study further revealed a robust and statistically significant positive correlation (r = 0.949, p < 0.01) between supply chain management (supp_chmgt) and risk management (rsk_mgt) among the participating manufacturing firms. this result highlights the strong interdependence of these two variables within the context of organizational resilience. conclusion in the ever-evolving business landscape of nigeria's manufacturing sector, the imperative for organizational resilience cannot be overstated. this study has explored the critical relationship between innovation, specifically supply chain management, and organizational resilience within the context of selected manufacturing firms, 7up bottling company and nigerian bottling company, located in benin city, edo state, nigeria. the findings of this research, based on a robust analysis of 198 responses from employees, managers, and key stakeholders, have shed light on several pivotal aspects and concluded that the study's outcomes have underscored a significant and positive correlation between supply chain management and risk management within these stated firms. recommendations based on the findings of this study, the following recommendations are put forth: manufacturing firms, including 7up bottling company and nigerian bottling company, should further emphasize the seamless integration of supply chain management and risk management processes. this can be achieved by adopting robust risk assessment mechanisms within the supply chain framework. references 1. adewale, s. o., & aina, o. s. 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(1984). a resource-based view of the firm. strategic management journal, 5(2), 171-180. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 77 www.americanjournal.org foreign experiences on improvement of quarantine service in promotion of export of fruit and vegetable products and possibilities of their use alimov murodkosim achilovich research institute of quarantine and plant protection a b s t r a c t k e y w o r d s when joining the wto, the existing phytosanitary requirements in the republic of uzbekistan will have to be harmonized with the international phytosanitary requirements of this international organization. the state plant quarantine inspectorate of the republic of uzbekistan must comply with the “agreement on the application of sanitary and phytosanitary measures” introduced by the wto organization. phytosanitary requirements should have a "technical basis". world trade organization, harmful organism, phytosanitary risk analysis, technical basis, foreign trade, regional organizations plant quarantine and protection, economic factors, wto rules. introduction in the process of international trade, the entry of harmful organisms, diseases and weeds into the territory of the country, crossing national borders, is a specific form of external factors. in this process, what should be the level of protection against the introduction and spread of harmful organisms on the territory of the country. in the agreement in the process of becoming a member of the wto organization (article 5 of the agreement), the following economic factors related to such negative consequences were included by the wto organization: -determining how much damage the production or trade sector will suffer due to the introduction, survival or spread of a harmful organism; -determination of the scale of spread of this harmful organism when it is first detected after the importer enters the country, and the amount of costs to fight against it or eliminate it; -investigate the benefits and alternatives of phytosanitary risk mitigation. in this case, the amount of economic costs and economic damage caused to the environment may vary, and the allocation of funds for the fight against pests, the development of measures to prevent them from spreading will become a part of the state's internal policy. based on the wto agreement, it is necessary to analyze the costs specified in the contracts. this allows us to control the costs associated with preventing the expansion and spread of pest and disease areas in the future. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 78 www.americanjournal.org in the existing literature, activities in the field of phytosanitary and sanitation in the international trade of agricultural products are presented mainly in the form of statistical data, and in the study of the theory of international economy, they are given according to optimal tariffs as general relations in the distribution of economic resources. when joining the wto, the existing phytosanitary requirements in the republic of uzbekistan will have to be harmonized with the international phytosanitary requirements of this international organization. the state plant quarantine inspectorate of the republic of uzbekistan must comply with the “agreement on the application of sanitary and phytosanitary measures” introduced by the wto organization. phytosanitary requirements should have a "technical basis". any requests for plant quarantine in the process of trade with agricultural products that are not technically justified will be considered as "unreasonable requests" and will cause the exporting countries of plants and plant products to object to the wto organization about the unreasonable requests of the importing countries. phytosanitary laws, decrees and decisions, rules, requirements and procedures for finished products and industry-related production and processing methods, testing, certification control processes, plant production, transportation, storage, processing, sampling procedures for laboratory analysis and required quarantine regulations related to phytosanitary risk analysis and documents related to packaging marking processes to ensure product safety are all regulatory documents. phytosanitary risk analysis (fra) serves as the technical basis for plant quarantine. scientifically based and formalized phytosanitary risk analyzes within the framework of international requirements and norms are the basis for including these harmful insects, diseases or weeds and other organisms in the list of quarantine organisms and applying phytosanitary measures. therefore, phytosanitary risk analysis is considered the most important mechanism in the work process of international and national phytosanitary organizations in the quarantine of plants and their protection from harmful organisms. the list of quarantine organisms and phytosanitary requirements currently in effect in the republic of uzbekistan should be at the level of international requirements. the successor of the international agreement gatt (general agreement on tariffs and trade) concluded in 1947 is the global trade organization. in 1979, as part of the general agreement on trade and definitions, the "agreement on the elimination of technical barriers to international trade" was signed, and each sovereign state, while ensuring the phytosanitary safety of its territories, developed and implemented phytosanitary (sanitary and veterinary) measures. it was determined that there will be no obstacles to the trade of agricultural products between countries, and the concept of "technical justification" appeared. later, by the 80s of the last century, information and methods appeared about the main stages of phytosanitary risk analysis, what information should be used for justification, the development of phytosanitary risk analyzes and the harmonization of national standards with international phytosanitary requirements, as well as the role of plant quarantine activities. in 1995, the wto was established as an official organization in the wto system in order to liberalize international trade between member states, regulate trade and political relations. 133 countries are full members, 30 countries, including russia, uzbekistan and kazakhstan have observer status and applied for membership in the organization in 1992-93. the five principles of the world trade organization: non-discrimination in trade reducing trade barriers american journal of business management, economics and banking volume 15 august, 2023 p a g e | 79 www.americanjournal.org increasing competitiveness in international trade preference in international trade for developing countries forecasting the terms of trade and their stability in the 1990s, work on phytosanitary risk analysis was carried out in regional organizations such as the european and mediterranean countries on plant quarantine and protection, the north american plant quarantine and protection committee, the south american cono sur phytosanitary committee, and the pacific and asian commission on plant quarantine and protection on fra. regional and international standards and a modern system were introduced. currently, many countries are required to form a group of experts on conducting fra as one of the conditions for membership in wto, eu and other international organizations and trade associations. the production by a damaged pest products or the importation of contaminated products causes the spread of harmful organisms. damage may be limited to the country that imported or produced the contaminated product, while the economies of both exporting and importing countries can be harmed, sometimes with global effects. the following two characteristics of pests and diseases are defined depending on the damage they cause to the environment. a) geographical distribution of species, penetration of external pests and diseases and the mechanism of their action as well as distribution by trade, distinguishing from existing forms of damage caused by the production or import of damaged products; b) external factors related to pests and diseases are not static problems. they evolve over time and an appropriate trade policy should take this into account. the economy of sfs policy is related to the economy of the organizations that control them. consideration should be given to the optimal internal control of the pest to be controlled and the conditions under which its eradication will be effective or ineffective. pest populations play an important role in trade. organisms that are not expected to have significant risk to trade are irrelevant in trade policy. invasive pests and diseases must be prevented from entering and spreading, or the possibility of re-introduction after eradication. it will be necessary to search for ways to formulate an optimal trade policy, taking into account the possibility of the spread of the harmful organism over time. regional organizations of plant quarantine and protection (rppo) is an interstate organization as a regional regulatory body for the activities of national plant protection organizations (nppo). not all national organizations that are members of the world plant protection organization are members of the regional organization, or vice versa, not all members of the regional plant quarantine and protection organization are members of the world plant quarantine and protection organization. also, national plant quarantine and protection organizations may be members of more than one regional plant quarantine and protection organization in some countries. currently, 10 regional plant quarantine and protection organizations have been established in the world: -asian and pacific plant protection commission (apppc. 25 member countries. established in 1955.) caribbean agricultural health and food safety agency (cahfsa established in 1967. 22 member countries) -comunidad andina (can.founded in 1969 with 5 member countries) -comite de sanidad vegetal del cono sur (cosave, 5 member countries established in 1989). european and mediterranean plant and protection organization (eppo https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/cahfsa/ https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/comunidadandina/ https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/cosave/ american journal of business management, economics and banking volume 15 august, 2023 p a g e | 80 www.americanjournal.org convention 1951-15 countries. currently 52 countries are members.) inter-african phytosanitary council (iapsc established in 1956, 16 member countries) near east plant protection organization (neppo was established in 2009. 10 member countries) north american plant protection organization (3 countries are members of nappo established in 1976.) organismo internacional regional de sanidad agropecuaria (oirsa was established in 1953. 9 countries are members) pacific plant protection organization (pppo was established in 2017. 11 countries are members.) clause ix of the charter of the international plant protection organization (ippc) stipulates that regional plant protection organizations participate in all activities in the field of implementation of the tasks set by the international plant protection organization. in this paragraph, the obligations of the rppo are defined, as well as the obligations of cooperation with the secretariat and the commission of the committee on phytosanitary measures and international standards development. due to this, regional plant protection organizations play an important role in the implementation of the tasks defined in the ippo charter. article ix of the charter of the international plant quarantine and protection organization (ippo) defines the following as the main functions of regional plant quarantine and protection organizations: coordination of the activities of the national plant quarantine and protection organizations, which are members of the rppos, to promote and implement the goals of the national plant protection committee and participate in activities in this direction; development of interregional cooperation to ensure harmonization of phytosanitary measures; collecting and promoting information related to the fields related to the activities of ippo; cooperation with the secretariat and the commission of the committee on phytosanitary measures and development of international standards. each rppos carries out its activities on phytosanitary measures and their harmonization, prevention of the spread and introduction of harmful organisms, as well as the development and implementation of measures. technical consultations are held every year with the participation of representatives of the secretariat of the international plant quarantine and protection organizations and the regional plant quarantine and protection organizations. to date, 21 technical consultations have been held. each nppo carries out its activities on phytosanitary measures and their harmonization, prevention of the spread and introduction of harmful organisms, as well as the development and implementation of measures. in this work is organized in cooperation with ippo. the national plant quarantine organization of the republic of uzbekistan is currently a member of the european and mediterranean plant quarantine and protection organization. work is underway to harmonize national phytosanitary measures and standards and regulatory documents with international standards and phytosanitary measures. studying the activities of the above-mentioned regional plant quarantine and protection organizations and putting their experiences into practice, especially maintaining the integration of the andean countries agreement, was facilitated by the existence of common tasks, traditions of integration and specific measures in the economic, scientific, scientifictechnical and cultural spheres among its members. this experience will be useful in the interaction of various economic associations within the cis countries and in the participation of the cis countries in other international organizations. https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/interafricanphytosanitarycouncil/ https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/neppo/ https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/oirsa/ https://www.ippc.int/external-cooperation/regional-plant-protection-organizations/pacificplantprotectionorganisation/ american journal of business management, economics and banking volume 15 august, 2023 p a g e | 81 www.americanjournal.org literature: 1. general council decision, november 1996, “agreements between the wto, imf and world bank. 2. the wto in global economic policy-making.for more information, visit the ippc website. 3. european and mediterranean plant protection organization. 4. принципы комплексного управления границами во внешнем сотрудничестве европейской комиссии. 5. regional plant protection organizations, website. https://www.wto.org/english/thewto_e/coher_e/wtl194_e.doc https://www.wto.org/english/thewto_e/whatis_e/tif_e/org5_e.htm#cooperation american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 159 www.americanjournal.org decision support for selecting consulting companies, management businesses, and operating airport projects following local and international standards-an applied study on najaf al-ashraf international airport ali abdulhussein khaleel alfadhel 1https://orcid.org/0000-0002-3126-379x najaf al-ashraf, 2023 a b s t r a c t k e y w o r d s since the establishment, the university of kufa has required to prepare specialized staff capable of serving the community and preparing for the planning of future specializations, in addition to establishing and investing in joint cooperation relations between the university and government departments, and this is one of the essential functions and obligations by providing these consultations to solve the technical and scientific problems that society needs. nowadays, the scientific and practical academic method has become the basis for effective and organized leadership in cognitive development, solving societal problems, and employing scientific research in the aspects of the iraqi government in general and najaf al-ashraf governorate in particular. decision support, project evaluation. introduction consulting offices play a major role in serving the community, as they provide many services, whether at the local or international level and at the level of different sectors. consulting services vary according to the offices or companies. there are companies that prepare research studies while others performing practical consulting work and provide advice and guidance. some companies and offices contact foreign companies and invite them to participate in investment, management, or provide solutions according to well-studied scientific standards. the work of these offices is considered important because it helps to choose the most feasible opportunities, which is one of the most principal responsibilities added to the consulting offices tasks, and helping them to choose the most efficient and best among a long comparison list. these offices can also provide many services, the most vital of which is preparing research, economic feasibility studies, and technical studies for various purposes, specializations and activities. these offices and consulting companies differ among themselves in terms of strength and influence according to a set of variables and standards. for instances, the criterion of the curriculum vitae (cv) that is rich in similar work and it is a main criterion in evaluating these offices, as well as the age of the consulting office, the degree of american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 160 www.americanjournal.org international and local classification, and the type of experts who are used in the process of evaluation as they are the components of the strength enhancers of these offices. scientific methodology significance the issue of determining mechanisms and guidelines for selecting consulting companies in general and airport management companies in particular is gaining a special watchfulness. its carefulness arises from the economic and social importance of najaf airport in the first place, and the other aspect is the sensitivity of the issue of selecting the best and most qualified company. as the issue of evaluating the performance of companies and offices may be the key and the first secret to future success thus, the appropriate company based on the well-studied standards will be reflected in the performance of the target of all these operations, which is najaf al-ashraf international airport. objectives these mechanisms and guidelines aim to introduce the policies and procedures followed by the najaf al-ashraf governorate, represented by the governorate administration, the governorate council, and administrative and financial experts from the university of kufa in selecting international consulting companies in airport management to guide them in the process of referring najaf international airport for investment, and designing a computerized program that supports the selection of companies in a scientific manner based on the criteria that have been reached. problem statement after long suffering with the spread of administrative and financial corruption and the lack of adoption of scientific foundations in managing some infrastructure components, including airports, it has become necessary to establish scientific foundations and standards through which competent entities are selected to manage and operate airports, including najaf al-ashraf airport. since we agree that weak management opens doors for the financial waste, wasted efforts and time, and the project cannot achieve its own goal. the following question can be asked to express the main problem: • will setting criteria for selecting consulting companies and management and operating companies for najaf al-ashraf airport, in accordance with local and international standards, contribute to achieving high efficiency in performance? hypotheses 1. using scientific standards that are formulated in a manner similar to international standards and from an experienced advisory committee will enhance the achievement of goals, mainly eliminating administrative corruption, which has caused a great waste of efforts and time. 2. the use of business intelligence, especially decision support, will provide transparency and objectivity in selecting companies, in addition to the fact that decision support will be collective, relying on expert evaluation dignitaries. theoretical framework general requirements and considerations american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 161 www.americanjournal.org 1. determining the responsible party for approaching consulting companies. 2. determining the responsible entity for selecting consulting companies and managing their contracts. 3. consideration should be given to selecting consulting companies before approaching them for signature. 4. the information provided by the consulting company about the airport management company must be true, accurate, fair and not misleading. 5. the consulting company should set technical standards by highly qualified and experienced practical experts to evaluate airport management companies. 6. dealing with all competitors for the management of najaf al-ashraf airport fairly and impartially, and avoiding any practical arrangements that may prevent the effective application of the principles of equality and equivalent opportunities among the competitors. 7. avoiding any type of future business partnerships between the consulting company and airport management companies. 8. maintaining the confidentiality of all information related to competitors and airport management information. 9. impartiality and independence in all processes for selecting airport management companies. 10. applying accuracy in all procedures related to the process of setting selection criteria for companies specialized in airport management. 11. the process of setting standards for selecting an airport management company is carried out according to precise and scientific procedures and based on the recommendations of a specialized scientific committee. 12. disclosing the number of experts used by the consulting company, their names, academic records, and cvs. 13. the consulting company provides scientific details to the najaf al-ashraf governorate office about the evaluation and selection mechanism, documented with accurate and scientific forms and statements. 14. preventing any document to be removed from the archive without an official permit from the competent official. 15. preparing a technical, economic and administrative study explaining the work mechanisms of the consulting company for each offer submitted by airport management companies. 16. setting specific dates for provided work without exceeding the agreed limits. 17. the following considerations must be taken into account when selecting between competing consulting companies: • choosing companies with high quality and reputation. • applying transparency in the selection process. • giving consulting companies the opportunity to compete in offering their services and presenting themselves. criteria for selecting consulting companies in the field of airport management american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 162 www.americanjournal.org 1. the number of experience years of the consulting company in the field of airport management should not be less than five years. 2. the number of airports that the company worked with or implemented projects. 3. the number of countries that the company worked in. 4. the number of projects that the company implemented. 5. the cost of consulting services. 6. the consulting company must be registered in government departments and provide proof of this along with similar businesses, a documentation of incorporation certified by the country of origin, and authenticated by the iraqi ministry of foreign affairs. 7. the good financial position and reputation for the consulting company. 8. classification of the company rank according to specific categories (first category, second category, third category and …etc). 9. the companies registered in their country must have international or local classification licenses where such licenses are certified and accredited in iraq. 10. the consulting company meets quality requirements. 11. qualifications of consultants working in the consulting office, as well as technicians and administrators. 12. the time limit for performing the duties and tasks assigned to the consulting companies. the above criteria form can be formulated according to a scientific evaluation form subjected to relative weights, and the evaluation process relies on a five or seven-point likert scale, as assigned in the form below: no. criterion completely available available neutral unavailable completely unavailable 1 first criterion 2 second criterion 3 third criterion ….. ….. 10 tenth criterion relative weights degree of acceptance or rejection no. name of the evaluator and expert the result american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 163 www.americanjournal.org 1 evaluator (1) 2 evaluator (2) 3 evaluator (3) 4 evaluator (4) 5 evaluator (5) 6 evaluator (6) 7 evaluator (7) 8 evaluator (8) 9 10 final average selection process the selection process should include the following steps: 1. preparation of terms of reference . 2. preparing the cost estimate. 3. announcing the opportunity. 4. organizing a short list of consulting companies. 5. arranging and issuing invitations for submitted proposals (which must include: the invitation letter, instructions for consultants, terms of reference and draft of the proposed contract). 6. receiving offers. 7. evaluating the technical proposals: considering quality, reputation, and experience in airport management affairs. 8. studying, presenting, or discussing publicly the offers of consulting companies. 9. evaluating the financial offers. 10. final evaluation of quality and cost. 11. negotiations and award the contract to the selected company. additional requirements from companies 1. a copy of the authorization and signature approval of the company representative or the agency of an individual on his behalf. 2. companies should obtain the (iso-9000) certificate and according to what the formed committee considers appropriate and by agreement. 3. providing a certificate of continuity of business for these companies. 4. a copy of the professional insurance document for the activity of these companies. 5. a cv of the consulting company and a presentation of similar work. 6. setting relative weights of the criteria for evaluating consulting companies. the weights are determined by the formed committee by an official order from the governorate and based on scientific grounds, and the consulting company that obtains the highest points is the winner and has the right to choose the airport management company. 7. after selecting the consulting company, a committee is formed from the consulting company, administrative, technical and legal experts and the main parties (consulting company, university american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 164 www.americanjournal.org of kufa experts, and governorate experts) to follow up the selection of the aviation management company. qualifications of consulting companies airline consultants must meet the following criteria: 1aviation consultants must be persons who possess the following qualifications: • bachelor’s degree in civil engineering, construction engineering, or other similar or related scientific fields. • master’s degree in engineering in addition to a license to practice engineering. • at least fifteen years of gradual experience in the field of airport management, organization and engineering. experience should include: preparing budgets, planning, and supervising capital improvement. 2. aviation consultants must have good experience and knowledge about modern trends in the field of aviation. they should know the rules of the federal aviation administration (faa) and the rules of the international aviation organization (icao). aviation consultants should also have good analytical skills to translate and interpret various sources of information and provide appropriate recommendations to their airline clients. aviation consultants need to have a strong ability to communicate with the federal aviation administration and the international civil aviation organization to provide them with explanations and instructions clearly and comprehensively. aviation consultants should also have good interpersonal skills to develop relationships with current, potential, or prospective clients. 3. aviation consultants must first ascertain the needs of their clients before providing their services to them. that's why when hiring them, consultants should conduct an assessment of the airline's situation and then develop a business plan with them. 4. some aviation consultants provide engineering assistance and consultation to designers in the aviation sector. since aerospace engineering consultants work largely with big aerospace companies or with local government agencies at various airports, they must provide expertise in the design, appropriate use of space, and modern innovative construction techniques. 5. aviation consultants must be sufficiently familiar with signals, flight warnings, take-offs, landings, and flight diversions. 6. consultants should have knowledge of wind turbines, airspace analysis and radar. 7. aviation consultants should be familiar with airspace management, icao instructions, performance-based aeronautical navigation (pnb) and area-based aeronautical navigation (rnav) and other aviation techniques and regulations. 8. aviation consultants should be familiar with the aviation curricula and instructions issued by the federal aviation administration (faa) and the rules of the international aviation organization (icao). 9. they should have experience in the fields of airport development, executive information systems, and electronic airport management. 10. they should have experience in the areas of strategic planning, infrastructure design and new land design that improve airport operations and customer service based on faa instructions and controls of icao rules. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 165 www.americanjournal.org 11. they should have experience in the field of accident analysis, recording and analyzing expert testimony in the field of aviation and related accidents. 12. finally, aviation consultants should have experience in business development, business analysis, and strategic positioning development. the practical work a model was designed to evaluate consulting companies and airport management and operating companies using microsoft excel. the business intelligence method can be adopted if there are a large number of companies or more consultants for the evaluation. the design in the model included seven interfaces, the main one dedicated to showing all the results and evaluations of the companies, and the forms. the other six interfaces are allocated to the evaluation committee, which consists of six evaluators, and the following is the final interface of the results: result name of the evaluator or expert no the company is not accepted prof. dr. youssef altaie 1 the company is accepted ass. prof. dr. mohamed ghaly 2 the company is not accepted ass. prof. dr. maitham al-khaqani 3 the company is accepted ass. prof. ali al-fadl 4 the company is accepted engineer firas al khafaji 5 the company is accepted engineer hisham almayahi 6 7 8 9 10 final average the table for the evaluators includes (10) criteria that can be increased. each criterion has been agreed upon by the companies evaluation committee, in addition to setting weights and the percentage of influence for each criterion relative to the importance and weight of this criterion. at the stage of entering the comprehensive data for the evaluation, each member of the committee puts the number allocated for the evaluation in the used likert scale. in light of the selection of the standard and the relative weight of the standard, the direction of the impact of the standard becomes clear. as a result, the consulting companies are evaluated and one result is shown where the final decision is to accept or reject the company. this decision is made by a member of the evaluation committee in a computerized manner to avoid error, favoritism, or emotional tendency. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 166 www.americanjournal.org as a result, each member of the committee fills out his own form, and the evaluation result appears. here, it is possible to extract additional results from the final evaluations and obtain an accurate decision in the case of closed answers (rejection or acceptance for consulting companies). equations • the equation for extracting the direction of impact in excel is: =(d18+e18+f18+g18+h18) /5 • equation for calculating acceptability: (very acceptable) = =((d17*$b17) +(d16*$b16) +(d15*$b15) +(d14*$b14) +(d13*$b13) +(d12*$b12) +(d11*$b11) +(d10*$b10) +(d9*$b9) +(d8*$b8)) *d7 • final decision equation: = if (c17<2.5,"the company is accepted”,"the company is not accepted") name of evaluator: prof. dr. mohamed ghaly company code/hu48 c r it e ri o n w e ig h t decision support system very acceptable acceptable neutral unacceptable totally unacce ptable direction of impact 5 4 3 2 1 0.10 4 positive the number of years of consulting experience in selecting the field of airport management and operation companies is not less than fifteen years 0.20 2 negative number of consultations provided as similar work in the field of airport management and operation 0.15 2 negative number of countries in which consulting companies have worked 0.08 5 the cost of consulting services to be paid by the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 167 www.americanjournal.org very positive company investing in the management and operation of airports 0.10 4 3 no trace the consulting company must be registered and provide similar work and a document of incorporation certified by the country of origin 0.14 4 positive list the good financial position and reputation of the consulting company that chooses the investing company for management and operation 0.05 5 4 positive the company must be on the list of consulting entrepreneurs and within the global classification 0.05 4 positive the consulting company meets any quality requirements 0.08 5 very positive qualifications of the staff and consultants working in the consulting company 0.05 5 very positive determine the time limit for performing the duties and tasks american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 168 www.americanjournal.org 1.00 6.5 7.04 0.9 1.4 0 3.2 the company is accepted conclusions and recommendations conclusions 1. setting standards for evaluating consulting companies and airport operating and management companies would reduce administrative problems between these companies and government agencies in iraq. 2. regulating the work of companies that manage and operate airports, including those applying for najaf al-ashraf international airport, will enhance transparency and loss of trust between the public and the government. 3. what was stated in the previous conclusion will reduce the cases of administrative and financial corruption resulting from lack of organization and direct management, since iraq has many bad experiences in the field of direct management, which paved the way for bad management, whether financial or administrative in general. 4. there are great opportunities to build specific standards to iraq by taking advantage of international and regional criterions and adapting those standards to suit this environment and its variables, especially political variables, and in a way that achieves independence for vital infrastructure such as airports, including najaf al-ashraf airport. 5. the previous administrations, starting from the year 2008, their performance was ruined by many defects and negligence due to the issue of mismanagement, which raised public opinion and the street against the local administration of the najaf governorate, and caused many demonstrations, some of which caused security violations through broken into the airport. 6. using decision support technology helped a lot in giving initial indications about the decision to accept or reject consulting companies. the results were excellent and give the opportunity for future development. recommendations 1. involve an airport management technical specialist in the formed committee with a legal person to review the standards and participate in this study to make it more sober based on his specialization. 2. due to the importance and sensitivity of the topic, the confidentiality of all information and ideas presented in this study must be maintained to ensure the success of the project. 3. develop a timely practical program for the next step (the stage after this study) that shows the responsibilities of each individual, the timelines, and the commitment to them. 4. reviewing the general requirements and necessary considerations in selecting consulting offices and seeking the opinion of the technical experts mentioned in no. (1) of the recommendations. 5. formulating an evaluation form for consulting offices that includes criteria for selecting companies and consulting offices and testing that form practically on a hypothetical case to ensure its success. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 169 www.americanjournal.org 6. design a detailed form explaining the (selection mechanisms) for consulting offices based on the criteria form supported by the timelines and maximum time frame for selection. 7. discussing the additional requirements imposed on the targeted consulting offices and the extent to which it can be achieved. 8. discussing alternative solutions if the above criteria do not apply to any consulting office or the consulting offices do not accept the opportunity and discuss reducing the ceiling of conditions to include the largest possible number of additional offices. 9. computerizing the specified standards for companies specialized in managing and operating airports to ensure decision support. 10. forming a technological work team specialized in the software industry to build an advanced system of detailed criteria for differentiation between companies. references 1. (administrative archive of the najaf governorate council, 2017). 2. (archive documents of the general secretariat of the council of ministers of iraq, 2017). 3. (safan, 2016). 4. (the comprehensive reference for excel functions, professional guide, 2011). 5. ( hassan & et al., 2019). 6. (https://najafinvestmentcommission.gov.iq/) 7. (https://www.cowi.com) 8. (https://www.arup.com) 9. (evaluation criteria use of evaluation criteria for procurement of goods, works, and nonconsulting services using rfb and rfp , july 1, 2016 ) american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 157 www.americanjournal.org the role of the leader in the systematic organization of management relations bobirmirzo arzimatov assistant, fergana polytechnic institute, fergana, uzbekistan e-mail: b.arzimatow@gmail.com a b s t r a c t k e y w o r d s the article mainly contains opinions on leadership qualities and how a leader should work with employees, as well as what kind of image a leader should have. leader, employee, virtue, speech, public speaking, sincere look, team, individual group. introduction in the last five years, a wide range of comprehensive measures have been implemented in our republic to radically increase the efficiency of the activities of ministries, state committees, other state administration bodies and business associations, to clearly define their tasks, powers and areas of responsibility [1]. in addition, in-depth and all-round critical study of the true state of affairs in sectors and regions is necessary and responsible for the functional tasks assigned to the deputy heads of ministries, state committees, other bodies of state administration and economic associations shows that there are a number of serious shortcomings and systemic problems related to the strengthening of personal responsibility for implementation [2,3]. at the modern stage of our country's development, in the process of intense and large-scale reforms that are being implemented to build a new uzbekistan, the heads of ministries, state committees, other bodies of state administration and economic associations will quickly solve the priority, strategic and urgent tasks facing our country. in order to increase the personal responsibility and accountability of the deputies, clearly define their tasks and powers, as well as to introduce a new system of evaluation through the main criteria of the efficiency of their activities and the achievement of the target tasks.optimizing the relationship between the subordinate and the subordinate is one of the most important methods of educational influence of adults on the younger generation. this type of communication and interaction is usually not limited to solving production problems. it goes beyond the communication of the program, it applies to various areas of human life [4-7]. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 158 www.americanjournal.org the main part expanding the scope of communication beyond the work process gives the manager additional information about the person and creates a basis for influencing daily activities. this allows you to optimize relations, improve work management. in the course of the joint activity of the leader and the subordinate, comfortable relations due to the leadership style, the means of organizing the labor production and educational processes. among the many styles of performance leadership, five typical styles stand out the most. the democratic leadership style is positively compared to the fact that solving the problems of the team and subordinates is carried out with the participation of everyone, which encourages activity and independence. the active participation of the individual in the general work of the team is formed. in such a leadership situation, the leader shows a certain tolerance for the critical comments of his subordinates. he seeks to understand them, to be the first among his peers to delve deeper into their personal affairs. everyone discusses problems in their work, makes decisions, chooses the best option, but the final decision is still made by the leader [8]. managers who have a democratic work style and are in constant communication with their subordinates are aware of their personal lives. the relationship between such leaders and subordinates is reliable and active. a person who faces insurmountable difficulties consults with his supervisor, communication is based on openness and trust, which is a good result. autocratic leadership style is characterized by the fact that the leader directs the activities of his subordinates, does not rely on the ownership of the group or team. in general, he does not take into account the opinion of his subordinates, their critical words cause objections in him. initiatives are often rejected. personal views, employee views are not taken into account, discriminatory communication is limited to purely business relations. such relationships often create conflict situations in the form of hidden discontent and disagreement, which sooner or later turns into an open conflict. this leadership style is dominated by relationships where subordinates go the way of masking and attachment. they perform the role that the leader wants. they behave as they want, which creates insincerity and distrust. this is how flexibility comes into play [9]. the microclimate in the team is saturated with misunderstanding, emotional tension and suppression of initiative to some extent. a sense of collectivism and independence, which are the leading qualities of an individual, are underestimated. adaptation of subordinates to such a leader requires the sole authority to produce and resort to various tricks of "protection". they wear different masks, perform roles that correspond to their leadership style. the style is also characterized by the fact that the leader tries to interfere as little as possible with the socio-psychological processes taking place in the team and the activity itself. he practically loses himself in the performance of his duties and is limited mainly to the duties of an administrator. a non-aligned leadership style is a mixture of all the previous styles. this eliminates activity and communication with subordinates. leaders often act based on their emotional state. at work and in communication, he uses one or another style of leadership. subordinates who communicate directly with the leader do not trust him, but perform certain "roles", which makes it difficult for them to work together, deprives them of the opportunity to improve their professional skills creatively and effectively does. the style of work management for the professional development of subordinates is formed under the influence of subjective and objective factors. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 159 www.americanjournal.org subjective factors are, first of all, the characteristic qualities of a leader: on the one hand, his temperament and volitional qualities, character traits and abilities, on the other hand, the general culture, level of requirements, characteristics. self-esteem, critical thinking, social relations. objective factors include: the leadership style of management, which leaves a mark on the leader's activity; the nature of relationships within the management team; the availability of comfortable workplaces, providing the workplace with a sufficient amount of office equipment, etc. at the same time, the optimal style of the leader and mandatory psychological conditions for communication between the leader and the subordinate are the leader's respect for the subordinate and high demands on him, a positive emotional atmosphere and a creative attitude to the activity, its completeness . with aesthetic content, with a desire for the future. good leaders listen to their employees, learn from them, and try to be useful to their team. ✓ they listen more than they talk if a person talks too much, it can also be a sign that he does not believe in himself. a good leader allows his employee to express his opinion because he really cares about what his employees think. the leader asks interesting questions that make them think and help them to understand the essence of the work more deeply. how is it structured? what did you like about it? what lessons did you learn from this? what will it take for you to do this job better? in this way, the leader demonstrates that each of them has an important place in the company's activities. in addition, he receives new useful information for himself. ✓ they listen to the opinion of others about their work a true leader cannot manage a work environment without knowing what the team thinks about his leadership style. a leader should always be interested in whether employees are satisfied with his management style or not, what changes they want to see in the team. he is well aware that it is necessary for his stable and effective work. ✓ they establish a trusting relationship with their employees if you want to develop your leadership qualities, behave in such a way that people can trust you. it is very important for a good leader that his employees turn to him on important issues. a trusting relationship means that the leader is open, considerate, and fair. ✓ they try to improve the lives of their company's employees a true leader should not be limited only by his own interests. he cares about his employees and is attentive to their needs. in this way, it forms a strong and cohesive team. to increase his authority in the eyes of the employees, the leader must ask himself: what can i do today so that my employees feel comfortable in the workplace and love their work? ✓ they admit their mistakes arrogance, dishonesty, and denial of the opinion of others are qualities that a leader must get rid of. everyone has the right to a personal opinion. even the leader of a large organization can make mistakes somewhere. and the team is necessary for exchanging ideas, opinions and helping each other. admitting your mistakes is not a sign of weakness. on the contrary, employees respect such a leader. because doing the right thing is more important than being right all the time. ✓ they stand firm in their positions a good leader must have a strong character. this quality is also necessary for making important decisions when the company faces serious challenges. he does not have to give up his principles. a true leader must always act in good faith, not deceiving himself or his employees. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 160 www.americanjournal.org leader constructive resolution of the conflict in the relationship between the employee and employee helps by taking into account each other's interests, differences in official statuses, individual psychological characteristics and emotional state, and approaching conflict resolution from different angles. references 1. a.d. sheremet, a.f.ionova enterprise finance: management and analysis stu.guide m: infra-m 2007 str 36. 2. yoldashev n.q. introduction to management. textbook. -t.: innovative development publishing house, 2021 3. principles of management david s.b. anastasia h.c. textbook. © rice university 2019. 4. general management: textbook / l.s. ruzhanskaya [and others]; under total ed. l.s. ruzhanskaya, i. v. kotlyarevskaya. ekaterinburg: ural publishing house. un-ta, 2017.116 p. 5. arzimatov b.z. article, european multidisciplinary journal of modern science “management system improvement trends” germany, berlin, 2022y., 403-408p. 6. xusanboyev, s., qodirov, a., baxromov, e., ulmasova, n., & to'xtamboyeva, n. (2021). the effect of the covid-19 pandemema on student behavior and concepts: on the example of institution students in uzbekistan. экономика и социум, (5-1), 550-558. 7. zokirjon o'g'li, a. b. (2023). turizmning iqtisodiyotda tutgan o’rni. образование наука и инновационные идеи в мире, 13(2), 159-162. 8. arzimatov, a. b. (2022). factor analysis of the management of investment attraction processes in the tourism sector. central asian journal of innovations on tourism management and finance, 3(11), 63-67. 9. ogli arzimatov, b. z. (2021). prospects for the development of services market in uzbekistan. central asian journal of theoretical and applied science, 2(12), 41-47. 10. ugli, x. s. y. (2022, may). evaluation of the effectiveness of agrotourism development directions in the republic of uzbekistan. in international conference on research identity, value and ethics (pp. 268-272). american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 63 www.americanjournal.org application of new innovative methods in teaching economic subjects in general secondary schools abdushukurova sevinch akramjonovna termiz university of economics and service by industries and sectors faculty 1st year student a b s t r a c t k e y w o r d s in this article, the teaching of economic sciences in general secondary schools will be raised to a new level, the opportunities for providing quality education, the formation of economic and entrepreneurial knowledge skills of schoolchildren, new innovative methods during the lesson will be discussed. methods of using educational methods and recommendations are given. educational system, innovative approach, quality, quality education, innovative educational methods (excursion lesson, combined lesson, lesson conference), educational technologies, ensuring the quality of education. introduction in the modern period of uzbekistan's development, special attention is paid to the modernization of education in determining the sustainable development of social spheres. new innovative approaches and effective changes are taking place in the educational system. today, the teaching of economic sciences in our country is rising to a new level. great attention is being paid to the development and implementation of effective mechanisms for the development of quality education opportunities, development of economic and entrepreneurial knowledge skills of schoolchildren. decree of the president of the republic of uzbekistan dated april 29, 2019 no. pf5712 "on approval of the concept of development of the public education system of the republic of uzbekistan until 2030" "the labor market of human capital and the competitiveness of students in the country "development as the main factor determining the level of education" important tasks were defined in the measures. the main goal of teaching the subjects "basics of economic knowledge" and "basics of entrepreneurship" in general secondary schools is to form economic literacy and economic culture in students, the most optimal in certain life situations related to socio-economic activity. to be able to find solutions and make the right decision, and to provide students with knowledge about the formation, evolution, nature and content of entrepreneurial activity and understanding, organization, implementation, development and support of entrepreneurship. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 64 www.americanjournal.org in the development of the students' skills to engage in economic relations, integration, connection with labor relations, the unity of educational factors, conformity to the socio-economic needs of society, the unity of individual needs and opportunities, taking into account the individual characteristics, class approach, the priority of the team's opportunity, the game principles such as character ownership have a special place. the implementation of these principles is based on the values of economic education of students and is reflected in the integral pedagogical processes. in the context of an innovative approach to education, the use of game technologies in the development of economic knowledge and skills of students of general secondary schools in the teaching of economic subjects increases the quality of the teaching of these subjects. in this regard: it is appropriate to use the experience of foreign countries in the use of game technologies in the development of economic knowledge and skills of a person, in particular, the game experiences of "monopoly", "money flow" and "economic twelve". educational games of imitative nature ("businessman", "industry", "crossword", "onagram", "rebus") based on methods such as "problem teaching", "group search" and "modular education" are organized in classes it serves to develop the ability of students to independently solve economic problems based on roleplaying games based on their age characteristics. tasks to be solved during the game: 1) teaching students to generalize and systematize their economic knowledge with the help of tasks of an economic nature; 2) development of students' skills of making the right decision (finding a solution) in problem situations; 3) forming students' ability to critically evaluate their economic knowledge, skills and abilities with the help of practical tasks. efficiency is achieved by organizing economic lessons based on innovative educational methods (excursion lesson, combination lesson, lesson conference). an excursion lesson in economic sciences is an extracurricular activity that can be conducted in production and service enterprises. in this process, students' economic and legal competence is formed using the technology of critical thinking. at the same time, the use of heuristic educational technologies in excursion classes serves to form students' marketing-entrepreneurial competence. in the conditions of an innovative approach to education, a combined lesson in the science of the basics of economic knowledge is conducted using the technology of the same design of all forms of education, such as theoretical, practical, and circle. forms the information-analytical competence of students by applying the design method in the combined lesson. the conference training in economic sciences is conducted using the possibilities of modern information technologies, using the conference, social networks (telegram, instagram, facebook, etc.) using differential education technology. information-analytical competence of students is formed in this. based on the above points, it can be said that the pedagogical process aimed at developing the skills of students to engage in economic relations depends on the correct and effective implementation of the organizational method and the selection of priority principles. improvement of the teaching methodology of economic subjects, including giving priority to problem assignments, educational projects, practical and didactic games in the lessons, will develop students' economic and entrepreneurial knowledge and skills. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 65 www.americanjournal.org the following practical recommendations are recommended for improving the methodology of teaching economic sciences: 1. development of a comprehensive system for developing the skills of students of general secondary schools to engage in economic relations, in which interdisciplinarity and it is necessary to achieve reflection of integration between educational organizations and production enterprises. 2. it is desirable to make the classes organized on the subject "basics of economic knowledge" and "basics of entrepreneurship" interactive in nature, in which it is desirable to focus on the development of general secondary education students' issues of entering into economic relations . 3. in the conditions of the market economy, the following entrepreneurial requirements are imposed on the school pedagogic employee: to take responsibility and feel it; organization of classes based on market regulations and requirements; keeping pace with progress; working with cooperation, solidarity, co-creation; ability to think independently; being able to clearly set a goal; entrepreneurship; creator, creator; demanding and kind; time-honored; must be a polite person. references: 1. o'zbekiston respublikasi prezidentining "o'zbekiston respublikasi xalq ta'limi tizimini 2030yilgacha rivojlantirish konsepsiyasini tasdiqlash to'g'risida"gi 2019 -yil 29-apreldagi pf-5712-sonli farmoni//https://lex.uz/docs/4312785. 2. xalikov a.a. pedagogik mahorat. darslik. toshkent, iqtisod moliya, 2012. 3. djuraev r.x., turg'unov s.t. ta'lim menejmenti. toshkent., "voris-nashriyot"., 2006. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 61 www.americanjournal.org the relationship between strategic improvisation and innovative behavior in jordan from literary review perspective dua’a adnan m abu shariah, phd candidate, strategic management, business faculty, mutah university, jordan kamel mohammad al hawajreh, strategic management, business faculty, mutah university, jordan a b s t r a c t k e y w o r d s in the struggle between technology and high competition, business institutions seek to deal in a way that ensures adaptation and innovation to ensure their survival in the market. hence, strategic improvisation emerged to deal with challenges and events so that there is a rapid response to all data, in addition to compatibility of business innovation in a way that suits the volatile business environment. hence, the current study came to investigate this relationship between strategic improvisation and innovation from a theoretical perspective. to achieve the objectives of the study, the descriptive approach was adopted by systematically reviewing previous relevant literature. it reflects theories and contributions in the field within different circumstances and data. the comprehensive review study concluded that there is a positive relationship between strategic improvisation and innovation. so that companies that rely on strategic improvisation will be more innovative at all levels. hence, the study recommends that jordanian companies, after suffering many challenges after the corona virus, need to employ strategic improvisation strategies in harmony with innovation in business to have added value and continue in the jordanian business environment that suffers from many challenges represented by politics and economics. strategic agility, organization structure, idea exploration, idea generation, entrepreneurship, strategic adaptation introduction with global economic developments, companies have many challenges and opportunities (alghizzawi, ahmed, et al., 2024; malkawi et al., 2024). in order to reach safety and ensure continuity in the business environment, adaptation is necessary (omeish, alrousan, et al., 2024; omeish, sharabati, et al., 2024). hence, modern concepts and strategies were born in the business environment american journal of business management, economics and banking volume 24 may 2024 p a g e | 62 www.americanjournal.org for the purposes of improvisation and innovative behavior that serves institutions (alsaqal et al., 2021; gojny-zbierowska & zbierowski, 2021). this enhances the speed of dealing with challenges and making strategic decisions in an accurate and thoughtful manner (ibrahim et al., 2018; mamédio et al., 2022). therefore, innovative behavior includes dealing with behaviors that are consistent with the company’s ideas and products (elareshi et al., 2022). the relationship between strategic improvisation and innovative behavior is important in the context of scientific and practical contributions in the business sector. understanding this relationship generates more effective perceptions for promoting innovation (al olaimat et al., 2022). despite the large number of studies that have examined this field, this relationship needs further verification in accordance with market requirements and global fluctuations in terms of external and internal factors affecting the work of institutions. as for jordan, its economy is considered volatile due to the political challenges and its location, which imposed many factors on it (aboalganam et al., 2024; al htibat et al., 2024; alghizzawi, alzghoul, et al., 2024). therefore, it was necessary to focus on business development and innovation, especially since jordan is located in the heart of the middle east and represents a strategic role for the region as a whole, despite the political challenges that are reflected in the jordanian economy. this reinforces the importance of studying the relationship between strategic improvisation and innovative behavior, especially in jordan. through the current study, we seek to verify the relationship between strategic improvisation and innovative behavior by reviewing previous relevant literature and discovering the most important findings about the impact of strategic improvisation and innovative behavior, and this is what ensures the achievement of added value in the market (elareshi et al., 2024). the current study will address previous studies and then review the relationships, the most important variables, and the latest discussions and recommendations. finally, the study of economic, cultural, and social factors will also be addressed as external and internal factors that affect strategic improvisation and innovative behavior. this will provide more insight into how jordanian business institutions can deal with the existing changes and challenges by promoting innovation. 2. methods in order to achieve the goal of the study on researching the relationship between strategic improvisation and innovative behavior. the descriptive approach was relied upon, as it is considered one of the most appropriate approaches in the human sciences, especially since the study is in the field of administrative sciences, and this is what many studies have recommended adopting this approach (albloush et al., 2024; alhanatleh et al., 2023, 2024; alharafsheh et al., 2023; alkhlaifat et al., 2024; alshaketheep et al., 2023; megdadi et al., 2023). in addition, the study will review the external and internal factors affecting the relationship between strategic improvisation and innovative behavior, and this requires a logical analysis of previous studies, as the study showed (al jwaniat et al., 2024; creswell et al., 2003; creswell & poth, 2016; habes et al., 2024). finally, the study will be divided into previous literature, then discussions, and then the conclusion. 3. related study strategic improvisation refers to describing how organizations allocate and coordinate their resources to achieve their goals (al htibat et al., 2024; falkheimer & sandberg, 2018). it is also described as strategic directions as simply reflections of how some companies operate (alhimyari & al-murshidi, american journal of business management, economics and banking volume 24 may 2024 p a g e | 63 www.americanjournal.org 2020; mamédio et al., 2022). both of them defined strategic directions as a reflection of the basic principles in the various activities, operations and strategic directions undertaken by the organization that create the necessary behaviors. to achieve superior performance (bakar et al., 2015). while innovation performance is measured by things like product innovation, process innovation, and overall innovation success, strategic improvisation is the capacity of businesses to adapt swiftly and efficiently to changing conditions (muller & peres, 2019). according to (gojny-zbierowska & zbierowski, 2021; sarwar et al., 2023) research, businesses that exhibit greater degrees of strategic improvisation also typically exhibit higher levels of innovative performance. additionally, businesses are more likely to succeed in innovation if they take a more proactive approach to looking for new opportunities, acting quickly, and adjusting to shifting market conditions (al issa, 2021). in the same context (alhimyari & al-murshidi, 2020)research indicates that strategic improvisation is essential for encouraging innovation in businesses. the relationship between strategic improvisation and innovation performance is influenced by a variety of factors (alhimyari & al-murshidi, 2020). these elements included the culture of the organization, the backing of the leadership for innovation, and the accessibility of resources for creative endeavors (abrantes et al., 2018). businesses that had a creative and encouraging culture in addition to strong leadership backing were better equipped to use strategic improvisation as a tool for innovation (sun et al., 2023). since strategic improvisation is seen as a catalyst for innovation and highlights the importance of organizational culture and leadership in creating an environment that supports both, the relationship between strategic improvisation and innovative performance in the corporate setting is generally significant. for managers and policy makers looking to boost innovation and competitiveness in local and global enterprises, these findings have significant ramifications (martinez et al., 2023). at all organizational levels and across all industries, there is a robust positive correlation between strategic improvisation and innovative behavior (gojny-zbierowska & zbierowski, 2021). one key sign of innovative behavior in these organizations is strategic improvisation, which is the capacity of businesses to act quickly and adaptably in the face of changing conditions (mamédio et al., 2022). high strategic improvisation firms are also more likely to take part in innovative endeavors including market expansion, process optimization, and new product development (peñarroya-farell & miralles, 2022). in addition, a number of variables, such as the degree of environmental uncertainty, the company's entrepreneurial drive, and availability to financial resources, influence the relationship between strategic improvisation and inventive behavior. businesses are more capable when they have a strong focus on entrepreneurship, adequate funding, and a stable external environment. to gain from utilizing strategic improvisation to improve imaginative conduct (gojny-zbierowska & zbierowski, 2021). all businesses exhibit innovative behavior because of strategic improvisation, which also offers practitioners and policymakers insightful information (hughes et al., 2020). through acknowledging the significance of strategic improvisation and its function in fostering innovation, policymakers can formulate policies and initiatives that foster entrepreneurship and augment competitiveness in the corporate domain (arias-pérez & cepeda-cardona, 2022). similarly, practitioners can make use of these results to create plans that encourage creative thinking and strategic improvisation in their companies (arias-pérez & cepeda-cardona, 2022). according to (alwi et al., 2018) study, innovative behavior enhances the business of companies in all markets and sectors. the innovative mindset of managers is considered to have an important role in enhancing american journal of business management, economics and banking volume 24 may 2024 p a g e | 64 www.americanjournal.org innovative behaviors. the figure below shows the role of the innovative mindset in enhancing innovative behavior. figure 1: the relationship between innovative mindset and innovative behavior one of the most important steps in innovation and creativity is idea generation. success in a variety of sectors depends on one's capacity to come up with innovative and workable ideas, from problemsolving to developing new goods and services (alwi et al., 2018; liu et al., 2020) the essential process by which inquisitive and imaginative brains look for uncharted territory, answers to issues, and chances for advancement is idea exploration. it's a complex path that calls for exploration and observation (berdecia-cruz et al., 2022; michaelis et al., 2021). 3. discussions the examined papers demonstrate how innovative behavior and strategic improvisation are related in the setting of business organizations across all levels and sectors (abrantes et al., 2018; al issa, 2021; arias-pérez & cepeda-cardona, 2022; bakar et al., 2015; falkheimer & sandberg, 2018; hughes et al., 2020; martinez et al., 2023; muller & peres, 2019; peñarroya-farell & miralles, 2022; song et al., 2011; sun et al., 2023). thus, we may talk about the most significant findings and ramifications of these research, which indicate that strategic improvisation and inventive behavior are positively correlated. based on the results of earlier research, we conclude that these findings can help jordanian organizations become more resilient to the challenges and volatility of the country's market, which is influenced by a wide range of social, political, and cultural factors. additionally, strategic improvisation can be used to foster innovative behavior and improve competitiveness. on the other hand, earlier research emphasized how organizational elements like culture, leadership, and resources affect how strategic improvisation and innovation interact. businesses that had creative and encouraging cultures in addition to robust leadership support were better equipped to use strategic improvisation as a tool for innovation. the external environment and market variables also have an effect on a company's ability to innovate and improvise strategically. strategic improvisation's potential to encourage innovation within businesses is also impacted by external environment stability and environmental uncertainty. american journal of business management, economics and banking volume 24 may 2024 p a g e | 65 www.americanjournal.org 4. conclusions the study's conclusions have significant ramifications for jordanian policymakers and practitioners. strategic improvisation is a strategic tool that practitioners can use to foster innovative behavior within their organizations, improving sustainability and long-term competitiveness. however, governments can also create programs and policies that encourage entrepreneurship, give access to capital, and foster an environment that fosters innovation among jordanian businesses—particularly small and medium-sized ones that have faced numerous difficulties since the corona pandemic. ultimately, the studies that have been analyzed offer insightful information about how businesses might use strategic improvisation to encourage creative thinking and boost competitiveness. organizations may create strategies that help them achieve sustainable growth in today's fast-paced business climate, adapt to changing circumstances, and take advantage of opportunities by understanding the relationship between these two ideas and the elements that drive them. references 1. aboalganam, k., alhanatleh, h., al-okaily, m., alghizzawi, m., khaddam, a., & almajali, d. (2024). examining antecedents’ factors influencing the customer co-creation value using opensooq app in jordan. uncertain supply chain management, 12(3), 2005–2022. 2. abrantes, a. c. m., passos, a. m., e cunha, m. p., & santos, c. m. (2018). bringing team improvisation to team adaptation: the combined role of shared temporal cognitions and team learning behaviors fostering team performance. journal of business research, 84, 59–71. 3. al htibat, a., alghizzawi, m., alhanatleh, h., ratib, a. a., ezmigna, i. e., & omeish, f. (2024). leveraging digital innovations during external shocks: analyzing social media’s flexibility in sustaining jordanian sme performance. journal of system and management sciences, 14(4), 105–117. 4. al issa, h.-e. (2021). the impact of improvisation and financial bootstrapping strategies on business performance. euromed journal of business, 16(2), 171–194. 5. al jwaniat, m. i., habes, m., almomany, r. m. a., al-zoubi, a. f., alzu’bi, w. h. a., & attar, r. 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(2021). strategic improvisation and its impact on organizational development for business organizations. journal of management information and decision sciences, 24, 1–16. 16. alshaketheep, k., deek, a. y., shammout, e., moh’d mansour, a., al-qaruty, t. m. r., & alghizzawi, m. (2023). the most effective digital marketing techniques for reputation repair. journal of research administration, 5(2), 7747–7772. 17. alwi, m. n. r., jaaffar, a. h., & baker, r. (2018). boosting innovative behaviour through innovative mindset: a conceptual model. european proceedings of social and behavioural sciences, 44. 18. arias-pérez, j., & cepeda-cardona, j. (2022). knowledge management strategies and organizational improvisation: what changed after the emergence of technological turbulence caused by artificial intelligence? baltic journal of management, 17(2), 250–265. 19. bakar, h. a., mahmood, r., & ismail, n. n. h. 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(2021). metacognition and entrepreneurial action: the mediating role of a strategic mindset on promoting effort and innovative behavior in frugal entrepreneurs. journal of business venturing insights, 16, e00283. 36. muller, e., & peres, r. (2019). the effect of social networks structure on innovation performance: a review and directions for research. international journal of research in marketing, 36(1), 3–19. 37. omeish, f., alrousan, m., alghizzawi, m., aqqad, a., & daboub, r. (2024). social media marketing elements, purchase intentions, and cultural moderators in fast fashion: evidence from jordan, morocco, and spain. international journal of data and network science, 8(3), 1613– 1624. 38. omeish, f., sharabati, a., abuhashesh, m., al-haddad, s., nasereddin, a., alghizzawi, m., & badran, o. (2024). the role of social media influencers in shaping destination image and intention to visit jordan: the moderating impact of social media usage intensity. international journal of data and network science, 8(3), 1701–1714. 39. peñarroya-farell, m., & miralles, f. (2022). business model adaptation to the covid-19 crisis: strategic response of the spanish cultural and creative firms. journal of open innovation: technology, market, and complexity, 8(1), 39. 40. sarwar, b., sarwar, a., mugahed al-rahmi, w., almogren, a. s., salloum, s., & habes, m. american journal of business management, economics and banking volume 24 may 2024 p a g e | 68 www.americanjournal.org (2023). social media paradox: utilizing social media technology for creating better value for better social outcomes: case of developing countries. cogent business & management, 10(2), 2210888. 41. song, m., im, s., bij, h. van der, & song, l. z. (2011). does strategic planning enhance or impede innovation and firm performance? journal of product innovation management, 28(4), 503–520. 42. sun, w., hou, x., liang, l., & bi, x. (2023). many roads lead to rome: how improvisation and absorptive capacity affect entrepreneurial orientation and new venture performance relationship. plos one, 18(3), e0281456. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 57 www.americanjournal.org legal transition to the legislative framework for investments in the green economy phd. якубова мадинабону абдумаликовна тошкент давлат юридик университети кибер хукук кафедраси a b s t r a c t k e y w o r d s this article examines the potential of legal transfer of innovation policies and regulations to facilitate investments in the green economy. five keywords: legal transfer, green investments, legislative framework, comparative law, transition to sustainable development. the introduction provides general information on the concept of a green economy and the need for large-scale green investments. the methodological section describes a doctrinal approach to legal research using a comparative analysis of the regulatory framework in different jurisdictions. the theoretical result is a comparative analysis of the legislative methods used to stimulate green investments and the identification of best practices for their legal transfer. the practical result is proposed legal reforms to ensure sustainable investment, including tax breaks, subsidies, public procurement standards, and mandatory green investment regulations for institutional investors. it concludes by summarizing the main findings and arguing for multi-level policy coordination and adaptive legal frameworks to stimulate the transition to sustainable development. legal transfer, green investments, legislative framework, comparative law, transition to sustainable development. introduction: the concept of the "green economy" has gained traction in recent years as a strategic response to converging environmental crises and growing environmental pressures. at its core, the green economy aims to promote economic growth and development while ensuring environmental sustainability (unep, 2011). this requires separating resource use and pollution from economic activity. the transition to a green economy will require massive changes in all sectors, including energy, transport, housing, agriculture, and manufacturing. the international energy agency estimates that $3.5 trillion per year of investment in the energy sector will be required in the coming decades to achieve net-zero emissions globally by 2050 (iea, 2021). such huge capital needs make it critical to have legislative and regulatory systems in place that encourage green investment by both public and private actors. this article discusses the possibilities of "legal translation" of innovation policy approaches into a legal framework for accelerating investments in the green economy. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 58 www.americanjournal.org methodology this article uses a doctrinal legal methodology using a comparative analysis of regulatory frameworks in different jurisdictions to identify effective legislative methods to stimulate green investment that could potentially be transferred or adapted to provide a "leap" in sustainable development policies (rose, 2016). the analysis is based on key examples from europe, the united states, canada and australia. these jurisdictions were selected based on their existing commitments and policy approaches to the transition to a green economy. in the article, legislative measures are divided into four broad mechanisms used by governments to stimulate green investments: 1) tax incentives 2) subsidies 3) public procurement standards 4) mandatory investment ratios/portfolio requirements. theoretical result tax incentives tax incentives are a widely used policy tool to encourage private investment in green sectors and sustainable technologies. key examples include investment tax credits, production tax credits, accelerated depreciation rates, and preferential tax rates. for example, the united states provides the investment tax credit (itc), which allows businesses to deduct 30% of the cost of solar energy systems from federal taxes, which has proven to be highly effective as a catalyst for solar energy investment (schmalensee, 2015). accelerated depreciation allows investors to quickly write off capital equipment costs, improving roi. in 2009, south korea introduced a 100% first-year depreciation charge for investments in renewable energy facilities (chang, 2014). tax incentives directly shorten payback periods and increase profitability. reducing risk and uncertainty for green investors. structuring tax benefits in the form of loans rather than deductions also makes them more accessible to smaller firms. subsidies direct subsidies, such as rebates, grants, and guaranteed feed-in tariffs (fit), are commonly used to support the adoption of renewable energy and other green investments. fits require electric utilities to buy electricity from renewables at above-market prices, securing lucrative long-term contracts to increase investment security. in the early 2000s, the german fit scheme caused a dramatic increase in the capacity of solar pv systems, accelerating cost reductions through economies of scale (proedrou, 2016). subsidies can be beneficial policy tools, given their flexibility with respect to specific sectors, technologies or project phases. however, cost-effectiveness depends on careful policy design. australia has shifted from fit to competitive auctions for the distribution of renewable energy subsidies, achieving lower costs but also slowing market growth. public procurement governments have enormous purchasing power that can be strategically harnessed through green public procurement (gpp) policies to spur green investment and technological innovation beyond what firms risk through private investment alone (brammer & walker, 2011). the eu has established voluntary gpp criteria and targets for member states. south korea requires central government agencies to comply with minimum quotas for the purchase of environmentally friendly products and services. in india, public procurement regulations require solar panels to be installed on the roofs of government buildings, opening up a major new market. the introduction of sustainability standards into public tenders provides ongoing incentives for companies to develop environmentally friendly solutions and american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 59 www.americanjournal.org opportunities for competitiveness. gpp simultaneously stimulates initial market demand and reduces the environmental impact of governments at the same time. mandatory investment ratios governments may also require some institutional investors, such as pension funds or insurance companies, to allocate a minimum share of assets to green investments. france has recently mandated institutional investors to report an esg-compliant stake, while the uk and canada have also signaled plans to introduce mandatory climate risk disclosure rules (campiglio et al., 2018). moreover, india requires life insurers to hold at least 15% of investments in government-approved green sectors. such portfolio requirements provide certain revenue streams and mitigate perceived risks for green projects and assets, stimulating the growth of robust green finance markets. mandatory investment ratios counteract short-term sentiment and increase the scale of institutional capital. however bottom line based on this comparative analysis, the following legislative measures are recommended to legally transfer the world's best practices into the context of green investment policies: tax incentives structured as investment credits for the costs of approved technology, equipment and construction/renovation of sustainable facilities. loans should account for 20-30% of the documented investment costs in order to significantly increase the profitability of the project. competitive reverse auctions to distribute production subsidies to renewable energy producers, with periodic review of incentive levels to balance cost control and market growth. public environmental procurement requires all government agencies and state-owned enterprises to receive a minimum of 50% of new fleets, building renovations, lighting, and other related costs from approved environmental suppliers or technologies. mandatory portfolio allocation requirements for institutional investors, such as public pension funds and insurance companies, must own a minimum of 20% of assets in approved green sectors, assets or projects by 2025, and by 2030 this figure will increase to 40%. this allows for large pools of capital while providing flexibility to portfolio managers. . annual sustainability reporting requirements for publicly listed companies and institutional investors to disclose levels of green investments and assets, ensuring monitoring and transparency. tax incentives and subsidies should be designed as time-limited measures, providing clear signals and sunset provisions as sectors evolve, while monitoring systems should be robust to prevent abuse. policy stability is also key: frequent retrospective changes undermine effectiveness. conclusion achieving the transition to a green economy will require mobilizing huge flows of public and private investment in all sectors of the economy. governments play a key role, through the legal and regulatory framework, in providing incentives and removing barriers to incentivize green investment. based on global best practices, this article proposes priority measures for the legal transition to the legislative framework, including: tax incentives, public procurement mandates, competitive auctions for subsidies, mandatory portfolio allocation rules, and sustainability disclosure requirements. adaptive policy packages will be needed, combining mechanisms to provide multi-layered reinforcement while balancing cost controls. further research should examine the interaction between specific provisions american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 60 www.americanjournal.org and broader policy parameters. the transition to sustainable development ultimately depends on political will to ensure multi-level coordination of policies and binding goals through adaptive legal frameworks. the recommendations presented here aim to expand the toolset to attract the transformative investments needed to transition to an environmentally regenerative, socially just, and economically prosperous green economy. recommendations brammer, s. & walker, h. (2011). sustainable public sector procurement: an international comparative study. international journal of operations and production management, 31(4), 452-476. campillo, e., dafermos, y., monnin, p., ryan-collins, j., schotten, g., & tanaka, m. (2018). climate change issues for central banks and financial regulators. nature climate change, 8(6), 462-468. chang, j. (2014). fostering green investment and innovation: a comparative look at renewable energy support schemes in china and the united states. duke envtle, l., & pauley, f., 25, 1. international energy agency (iea). (2021). world energy outlook 2021. iea, paris. https://www.iea.org/reports/world-energy-outlook-2021 proedru, f. (2016). the eu's renewable energy policy: the impact of the industry over two decades. energy policy, 98, 492-502. rose, gl (2016). the evolution of green leapfrog in developing countries: gallery notes on indonesia and mexico. international envtl l. comm. new news, 4, 15. schmalensee, r. (2015). u.s. wind and solar generator performance. energy journal, 36 (1). united nations environment programme (unep). (2011). towards a green economy: pathways to sustainable development and poverty eradication. https://www.unep.org/greeneconomy american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 100 www.americanjournal.org central bank digital currencies: economic drivers and implications khaleel ismael azeez1 college of administration and economy/tikrit university/tikrit/iraq e-mail: khalil14@tu.edu.iq. omar abdulla mohammad college of administration and economy/tikrit university/tikrit/iraq omar_ abdulla@tu.edu.iq anas dheyab salim college of administration and economy/tikrit university/tikrit/iraq anas-d-84@tu.edu.iq a b s t r a c t k e y w o r d s abstract. in light of the development of new technologies in the banking and financial industries, the general trend is to move towards a nonmonetary society, which is taken for granted in the economies through the central banks' recognition of the importance of the digital currency. where many central banks in developed countries are de-signing their own version of the digital currency and the mechanism and scenarios for its issuance. as the success of any digital currency depends on its competitiveness in the market, within a few years central banks have stepped up their efforts in the research and development of central bank digi-tal currencies (cbdcs). however, central bank digital currencies should be considered in the full context of the digital economy and data centraliza-tion, which raises concerns about competition, payment system integrity, and privacy. this paper provides a general idea of (cbdcs) and microeco-nomic considerations related to operational and technological structures, privacy, and macroeco-nomic effects on the financial system, general sta-bility, and monetary policy. money, central bank digital currencies, central banks encrypted currencies. introduction 1 introduction the emergence of encrypted digital currencies represents a great challenge for official currencies, because it has witnessed a great development due to the development of smart digital technologies to the extent that digital currencies have become used as a means of exchange. despite some positive american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 101 www.americanjournal.org characteristics of digital currencies such as universality and accessibility, it is witnessing a state of instability as it was vulnerable to fluctuate in value up and down. that is why the past few years have witnessed a great expansion in the volume of discussions about the disturbance in the value of digital currencies. as a result, many proposals were put forward to issue stable global currencies. many central banks adopted a more proactive stance than other central banks about future expectations for digital currencies and instead of continuing to deal with the system the prevailing monetary these central banks began their active participation in research and studies on the issuance of their digital currencies. as a survey conducted at the end of 2020 indicated that 86% of global central banks participated in research and study of the issue of issuing their digital currency, and that 56% of global central banks revealed their efforts to develop the issuance of digital currencies [1]. the digitization of economies has far-reaching effects on many economic variables, not the least of which is the monetary economy. the availability of huge amounts of data generated by digital activities is capable of creating new opportunities and challenges for the monetary system. for these reasons and in this context, the pace of issuance of (cbdcs) accelerated, although it took a cautious approach at the beginning, as these currencies were characterized by stability and the possibility of accessing them by users and benefiting from them in cross-border transfers, taking advantage of modern technology. however, there is still no consensus among all central banks are aware of the actual need to issue digital currencies specific to each central bank [2]. this was accompanied by very important discussions looking at the economic effects that cbdcs can have on the cash reserves of central banks and their balance sheets, and thus the impact on the extent of their interaction with commercial banks. the effects that cbdcs can have on the effectiveness of monetary policy and financial stability were also researched and studied. these discussions generated increasing confidence that the targeted economic model can achieve the objectives of the general economic policy, reduce the negative effects, increase the effectiveness of monetary policy, and improve the efficiency of the payments system [2],[3]. this made many central banks see that their digital currencies represent an infrastructure that can help expand markets and increase their competitiveness in the face of the incursion of major technology companies into payment systems [4]. accordingly, it can be said that the issuance of these currencies is one of the tasks and responsibilities of central banks, and they are a form of digital money denominated in a national unit of account. these currencies can be intended for use by financial institutions or by families and companies, and these currencies can be defined or can be expressed with certain symbols that enable the masking of identification in payments. in the recent period, the digital currencies of central banks have witnessed a great development that keeps pace with developments in the economy around the world and in line with the integration of theory with application. however, there are some gaps in this development through which some important questions can be raised about the international effects of issuing digital currencies of central banks on the issuing countries on the one hand and on the countries receiving these currencies on the other hand, and the subject still needs more research and study. from the aforementioned, this paper was organized to deal with a theoretical framework that enters into the economic literature about the digital currency of central banks and what are the motives for issuing it. also discusses its potential effects on the economy and what are the future prospects for this currency. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 102 www.americanjournal.org the study problem : the increase in the use of digital currencies for central banks could lead to a decrease in demand for traditional currencies, and thus this will affect the characteristics of central banks and a decrease in the size of the balance sheet of these banks, which reduces their ability to influence interest rate rates and reduces the regulatory capabilities of these banks. study hypothesis: the study assumes that the adoption of digital currencies by central banks can have positive effects on the effectiveness of monetary policy. purpose of the study : the study aims to identify: does the expansion of the issuance of digital currencies by central banks have a positive impact on the effectiveness of monetary policy? does the expansion of the issuance of digital currencies by central banks increase inflation rates in the economy? study methodologies: this study relied on the inductive approach in examining the experiences of some central banks in issuing digital currencies 2 literature review 2.1 the importance of cbdc issuance although cbdc has a range of potential advantages in theory, central banks must determine whether there are urgent reasons for issuing and adopting it at the present time and what are the future prospects for demand for it, as some central banks still have reservations about issuing it, at least in nowadays. although there are approximately 100 central digital currencies that are undergoing research and development until 2022, and two have been finalized, as in the cases of the central bank of nigeria and the bank of the bahamas, the motives for issuing these currencies differ according to the different central banks. where senior economists believe that the adoption of digital currencies issued by central banks can make the local payment systems more robust and enhance competition, and this may be a convincing reason to increase the chances of obtaining loans, improve the efficiency of payments, reduce transaction costs, and increase the level of transparency in money flows. . when talking about the motives for issuing these digital currencies, there are potential risks that central banks must take into consideration. for example, users may over-withdraw funds at once from the bank in order to purchase central bank currencies, which may cause a crisis, not to mention the extent to which central banks are able to manage risks. imposed by cyber attacks [5]. with regard to cbdc issuance, most central banks have strategies related to the objectives of improving performance in key cases related to payment markets, financial stability, monetary policy and financial inclusion. for each of these four main areas, different planning options are considered in order to formulate specific and clear policy objectives. the hierarchy of policy objectives for each central bank depends on the relative importance of the policy objectives on each central bank's particular strategy as well as on local conditions regarding the country's currency. the relative american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 103 www.americanjournal.org importance of these goals varies with the passage of time, just as the motives of central banks for these goals in developed economies differ from their motives in emerging markets and developing economies [6]. in developed economies, the acceleration of payment processing was found to be the main driver for accelerating the introduction of cbdc. according to bank of canada 2020, digital banknotes allow families and companies to access risk-free funds with high operational flexibility. many authors believe that cbdc improves the efficiency of domestic payments by enhancing competition and increasing innovation in the payment markets [7]. while the multiplicity of payment systems in the case of international payments may lead to a kind of incompatibility, slowness, high cost, and difficulty in accessing them, with other economic consequences represented by the decrease in the use of cash and the widespread reliance on digital currencies. 2.2 motives for issuing cdbc central banks and a lot of economic literature believe that cbdc can have a positive impact on the stability of the financial system and reduce the fragility of the financial system by issuing an alert when there are risks of rushing operations on banks, thus protecting deposits and reducing liquidity risks [8]. also, cbdc can have a potential negative impact on financial stability when depositors see that cbdc is more attractive than bank deposits because it is risk-free. negative consequences [9]. one of the reasons why central banks issued cbdcs is the possibility of obtaining new tools for monetary policy, as most economic policy makers and academics believe that it is possible to add a tool to monetary policy through the issuance of cbdc represented in increasing revenues, easing restrictions, and enhancing the impact of monetary policy transmission [10]. yet the controversy remains there is a discussion about the extent to which cbdc can be used to strengthen monetary policy. some central banks aim to use cbdc to ensure access to central bank funds. in developing economies, where structural imbalances reduce access to formal financial services (transactions, payments, savings, and credit). but in developed economies, where access to electronic media is more widespread, and access to an easy, reliable, and risk-free electronic payment method [11]. especially if its advantages are similar to or greater than those of official money, which makes it marginalized. 3 conclusions there is an urgent need for more research and studies to understand the potential obstacles in adopting these currencies and thus overcoming them. it is not necessary that there will be widespread adoption of payment systems that adopt advanced technology. that the comparative advantage achieved by the (cbdc) currency is not necessarily adopted by consumers, as here enters the differentiation factor. it may also not take into account possible subsequent infrastructure costs when calculating the current zero cost. participation with the private sector may be a reason to increase confidence in these currencies and reduce caution. in addition to the availability of more data on experiments and studies to adopt (cbdc) that would help in diagnosing the strengths and weaknesses of these currencies. also, dealing with caution with the conclusions of studies and research because it is still too early to draw lessons from the adoption of these currencies, and the researcher indicates that the initiatives and recommendations presented above are not final and may be a minor contribution to the necessary discussions about (cbdc). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 104 www.americanjournal.org references [1]. boar, c., & wehrli, a. (2021). ready, steady, go?–results of the third bis survey on central bank digital currency. bis papers, 114. [2]. auer, r., & böhme, r. (2020). the technology of retail central bank digital currency. bis quarterly review, march. 85–100. [3]. auer, r., & böhme, r. (2021). central bank digital currency: the quest for minimally invasive technology (no. 948). bank for international settlements. [4]. auer, r., frost, j., gambacorta, l., monnet, c., rice, t., & shin, h. s. (2022). central bank digital currencies: motives, economic implications, and the research frontier. annual review of economics, 14, 697-721. [5]. stanley, a. (2022). the ascent of cbdcs. finance & development, september 2022, 48. [6]. kosse, a., & mattei, i. (2022). gaining momentum–results of the 2021 bis survey on central bank digital currencies. bis papers. no 125, bank for international settlements, base. [7]. ponce, j. (2020). digitalization, retail payments and central bank digital currency. financial stability review, 39, 127-155. [8]. auer, r., frost, j., gambacorta, l., monnet, c., rice, t., & shin, h. s. (2022). central bank digital currencies: motives, economic implications, and the research frontier. annual review of economics, 14, 697-721. [9]. cœuré, b. & cunliffe, j., (2020), central bank digital currencies: foundational principles and core features : report no. 1 in a series of collaborations from a group of central banks, bank for international settlements. [10]. davoodalhosseini, s. m. (2022). central bank digital currency and monetary policy. journal of economic dynamics and control, 142, 104150. [11]. mancini-griffoli, t., peria, m. s. m., agur, i., ari, a., kiff, j., popescu, a., & rochon, c. (2018). casting light on central bank digital currency. imf staff discussion note, 8(18), 1-39. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 117 www.americanjournal.org how digital currencies are impacting traditional banking systems and the global economy ro’ziboyeva muslima student of the faculty of economics samarkand institute of economics and service asrorov azizbek isomiddin o‘g‘li research advisor, independent applicant for the kimyo international university in tashkent a b s t r a c t k e y w o r d s this study rigorously examines the economic dynamics instigated by the proliferation of digital currencies, probing their intricate implications for traditional banking infrastructures and the overarching global economic paradigm. employing advanced economic and academic lexicon, our analysis dissects the technological disruptions precipitated by digital currencies, elucidates their catalytic role in engendering financial inclusion, and scrutinizes the nuanced evolution of central bank engagement. digital currencies, traditional banking systems, central bank engagement, technological disruptions, security imperatives, regulatory frameworks, market volatility, blockchain technology. introduction we conduct an in-depth exploration of security imperatives and regulatory frameworks, appraising the consequential effects of digital currencies on market volatility, cross-border transactions, and consumer adoption. furthermore, we evaluate the profound influence of blockchain technology beyond financial purviews, offering insightful prognostications for the future economic landscape shaped by the continuous maturation of digital currencies. this abstract provides a scholarly glimpse into the multifaceted economic impact, challenges, and prospects emanating from the intersection of digital currencies with traditional banking systems and the global economy. main part: the landscape of global finance is undergoing a seismic shift with the proliferation of digital currencies, reshaping the traditional contours of banking systems and reverberating throughout the global economy. this study embarks on a nuanced exploration of the economic dynamics unleashed by digital currencies, delving into their far-reaching implications and transformative potential. as these currencies redefine the nature of financial transactions, challenge established banking norms, american journal of business management, economics and banking volume 22 march 2024 p a g e | 118 www.americanjournal.org and captivate the attention of both regulators and market participants, it becomes imperative to dissect their multifaceted impact. in this era of rapid technological evolution, digital currencies represent more than a novel means of exchange; they embody a paradigm shift in how we conceptualize and engage with the financial ecosystem. the intersection of digital currencies with traditional banking systems is not merely a collision of technologies but a recalibration of economic relationships and power structures. this introduction sets the stage for an in-depth analysis of the economic intricacies at play, from the disruptive technologies underpinning digital currencies to their profound consequences on global financial landscapes. as we navigate this uncharted territory, it becomes increasingly clear that understanding the economic dynamics of digital currencies is not just an academic pursuit but a requisite exploration for stakeholders navigating the future contours of finance. in 1694, the bank of england became the first bank to regularly issue banknotes as a means of payment. before currency, the first known forms of money were agricultural commodities such as grain or cattle. today, the world’s central banks maintain a legal monopoly on the creation and destruction of money. however, with the rise of the internet and cryptocurrencies such as bitcoin, central banks are now under pressure to develop their own digital currencies. central bank digital currencies (cbdcs) are increasingly seen as a potential replacement for physical cash. a 2021 survey conducted by the bank for international settlements found that 86 percent of central banks were actively researching the potential of cbdcs, while 60 percent were experimenting with the technology and 14 percent were deploying pilot projects. while china’s digital yuan has received the lion’s share of media attention, more than 100 countries are exploring cbdcs. together with the rapid development of artificial intelligence (ai), cbdcs present both opportunities and challenges. like paper banknotes, cbdcs represent a medium of exchange and a store of value. like cryptocurrencies, cbdcs are intended to provide a secure, efficient, and convenient form of digital currency. however, unlike cryptocurrencies, cbdcs are backed by the government. in conclusion, a proactive approach to the integration of digital currencies can position traditional banks as key players in the future of finance. embracing technological advancements while upholding regulatory prudence will not only foster resilience but also contribute to the overall growth and stability of the global economy. in navigating this transition, banks should prioritize customer education on digital currencies, ensuring a seamless and user-friendly experience. simultaneously, regulatory frameworks must evolve to accommodate the nuances of this evolving financial landscape, striking a balance between innovation and risk mitigation. references 1.alliance for financial inclusion (afi). 2022. “central bank digital currency – an opportunity for financial inclusion in developing and emerging economies?” special report, digital financial services working group. 2.alliance for financial inclusion (afi). 2023. “toolkit on gender inclusive policy development.” 3.alonso, cristian, tanuj bhojwani, emine hanedar, dinar prihardini, gerardo una, and kateryna zhabska. 2023. “stacking up the benefits: lessons from india’s digital journey.” imf working paper 23/78, international monetary fund, washington, dc. american journal of business management, economics and banking volume 22 march 2024 p a g e | 119 www.americanjournal.org 4.banco central do brasil (bcb). 2023a. “pix frequently asked questions.” https://www.bcb.gov.br/en/financialstability/pixfaqen. 5.banco central do brasil (bcb). 2023b. “faq – drex – digital brazilian real.” https://www.bcb.gov.br/en/financialstability/faq_digital_real. 6.bank for international settlements (bis). 2023b. “blueprint for the future monetary system: improving the old, enabling the new.” bis 2023 annual economic report. 7.bank of ghana (bog). 2022. “design paper of the digital cedi (ecedi).” bank of ghana, accra, ghana. 9.carpena, fenella, shawn cole, jeremy shapiro, and bilal zia. 2011. “unpacking the causal chain of financial literacy.” policy research working paper 5798, world bank, washington, dc. 10.chang, huifeng, lucyna gornicka, federico grinberg, marcello miccoli, and brandon tan. 2023. “cbdc and banking disintermediation in a portfolio choice model.” imf working paper, international monetary fund, washington, dc. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 7 www.americanjournal.org ways to improve implementation of innovations in the field of agriculture in uzbekistan narinbaeva gulnora karimovna independent researcher, tashkent state agrarian university, uzbekistan e-mail: shoxjahon.jalilov@mail.ru, tel: +998942919339 a b s t r a c t k e y w o r d s the article presents ways to improve the introduction of innovations in agriculture. one of the main factors in the growth of production and employment in agriculture is the application and wide distribution of innovations. practice shows that innovation is the most important source of improving product quality, saving labor and material costs, increasing labor productivity, improving production and increasing industry efficiency. as a result of the development of innovations, the competitiveness of manufactured products and enterprises in the domestic and foreign markets and the improvement of the socio-economic situation in the country's agrarian sector will be ensured. requires some changes in their relations. agriculture, innovation, economy, innovative activity, cotton, logistics, efficiency, resourcesaving technologies, hydroponic methods introduction the problems of the theory of innovation are becoming more and more relevant and arouse the interest of many scientists, which is confirmed by the ever-increasing volume of publications in foreign and domestic science. the introduction of modern machinery, tools and equipment, technology and know-how to the agricultural sector in uzbekistan requires, first of all, the organization of effective innovation and innovative activities and the carrying out of properly oriented innovative activities. attracting foreign investors through full use of innovative opportunities is the main task. in order to implement it at the level of agricultural sectors and economic entities, it is necessary to determine the directions of innovative policy based on the current requirements of economic development, implement innovative projects, and create a market for innovative products. in order to carry out these works, it is necessary to train personnel who have a deep knowledge of the scientific bases and organizational forms of innovative activity. [1-2]. continuous updating of the technical, technological and organizational base of agricultural production, increasing the productivity of agricultural plants and livestock, innovative activities that american journal of business management, economics and banking volume 22 march 2024 p a g e | 8 www.americanjournal.org ensure the competitiveness of manufactured products in world markets, and encouraging the use of innovations are important for the sustainable development of the country's economy. [1-4]. in the conditions of modernization of the economy, it is necessary to solve a number of problems in attracting innovations to the agricultural sector, because the processes of reforming the agrarian sector, priority development of farming, and extensive development of cooperatives are being carried out without stopping. [1-3]. in this regard, the development of science-based mechanisms for the introduction of innovations in the agricultural sector, the improvement of the prospective organizational-management methodology of the introduction of innovations, and the search for effective ways of their implementation become relevant and determine the directions of research. literature review: the problems of innovation in agriculture are becoming more and more relevant and are attracting the interest of many scientists, as evidenced by the ever-increasing volume of publications in foreign and domestic science. theoretical and methodological foundations of ways to improve the introduction of innovations in agriculture l. vodachek, p. draker, m. peters, b. santo, b. twiss, r. khizrich, m. khuchek, i. schumpeter, v. v. alekseev, s. v. valdaytsev, g. ya. goldstein, l.m. gokhberg, p.n. zavlin, s.d. ilenkova, g.d. kovalev, g.i. morozova, i.s. sandu, r.a. fathutdinov abdurakhmanov q.kh, yusupov .e.d, umurzakov o'.p, toshboev a.j, toshboev a.a, abdug'aniev.a, samatov. it is based on the scientific works of scientists such as g'a, ib rustamova. materials and methods implementation of promising projects for the development of agrarian industries in uzbekistan requires the introduction of modern machinery, tools and equipment, technology and know-how to new agrarian industries, first of all, the organization of effective innovation and innovative activities and the carrying out of properly oriented innovative activities. attracting foreign investors through full use of innovative opportunities is the main task. innovation is an activity or activity that involves the use of new knowledge, know-how embodied in new technologies, new combinations of production factors, as well as having the goal of creating new products that can perform new characteristic tasks with a much higher market potential, or eliminating the negative consequences of destructive processes. is the result. . [1-2]. that is, innovation can be considered as the result of the transformation of ideas, research, development, new or perfect scientific-technical or socio-economic decisions. innovation is an achievement of science and technology development implemented in economic, social and environmental terms. innovation activity is not a type of activity, but rather its character. the field of innovation does not exist, because any activity and any field, if innovations (such as knowledge, technologies, applications, approaches) are introduced to achieve a result characterized by high demand (such as social, market, defense). can be innovative. as a result of the reforms carried out in the agrarian sector of our country's economy, in various ownership-based economic entities, which are entering the path of solid economic growth, first of all, the sense of ownership of property, the results of their labor, and the increase in the efficiency of american journal of business management, economics and banking volume 22 march 2024 p a g e | 9 www.americanjournal.org agricultural production, including cotton and grain production, through the mechanism of material interest. is creating the ground. [1-4]. cotton growing is an important commodity sector in the republic's agriculture. its importance in the economy of the country is very great and it is the main currency resource. uzbekistan's generous nature, warm climate, land, water and rich labor resources, the experience of its people over the centuries, and farming culture ensured that cotton growing became a profitable industry. that's why its high performance in cotton cultivation determined its great position in the world. the development of science in the field of cotton farming, the use of modern techniques and technologies in the industry, the level of development of the industry for the production of technical tools for cotton farming, the creation of new agrotechnical methods, the great scientific potential accumulated in the field of cotton selection and seed breeding, the experiences accumulated in the industry and trained qualified specialists today make our republic the world's leading cotton producer. laid the foundation for becoming one of the growing countries. in particular, in the development of the agrarian sector economy, the importance of the cotton sector is high in agriculture. a cotton farmer today earns a high income from his labor and is engaged in the development of production, acquiring entrepreneurial skills. table 1 below shows the dynamics of changes in the area of agricultural crops. according to the table, the area of cereal crops in 1991 was 1079.9 thousand hectares, in 2020 it was 1578.3 thousand hectares, vegetable crops were 165.6 thousand hectares in 1991 to 220.0 thousand hectares in 2020, and potatoes were 40.0 thousand hectares in 1991 to 2020 increased by 89.6 thousand hectares. we can see that the total area of agricultural crops has decreased from 4200.0 thousand hectares in 1991 to 53309.4 thousand hectares in 2020. however, the year-by-year decrease in arable land has not affected the volume of agricultural products. the volume of agricultural products is provided mainly due to the intensive development of agriculture, i.e. increasing the yield of crops.[1-4]. table 1 dynamics of changes in agricultural arable land in the republic (thousand hectares) table 2 shows the dynamics of agricultural production in the republic. as can be seen from the data in the table, over the past 20 years, the gross yield of the main types of crops had a constant growth rate. in particular, in 2022, compared to 1991, grain will increase from 1899 thousand tons to 7437.8 thousand tons, vegetables from 2843 thousand tons to 10215.1 thousand tons, potatoes from 336 thousand tons to 3089.2 thousand tons, sugar products from 1000 tons to 2068.7 thousand tons, fruits № indicators 1991 year 2018 year 2019 year 2020 year 2021 year 2022 year 1 total cultivated area 4200,3 3706,5 3706,7 3474,5 3396,0 3309,4 including: 2 don 1079,9 1689,9 1689,4 1655,6 1643,2 1578,3 3 potatoes 40,0 84,6 84,7 78,8 86,8 89,6 4 vegetable 165,6 206,0 206,1 189,7 219,0 220,0 5 poly crops 83,2 58,8 58,9 53,3 52,6 53,4 6 cotton 1720,5 1265,1 1265,1 1201,2 1108,2 1050,6 american journal of business management, economics and banking volume 22 march 2024 p a g e | 10 www.americanjournal.org 660 thousand tons to 2752.7 thousand tons, grapes increased from 745 thousand tons to 1749.9 thousand tons.[1-5]. it should be noted that during the years of independence, the increase in the volume of agricultural products was ensured not only due to the expansion of cultivated areas, but mainly due to intensive development, i.e., increasing the productivity of crops. table 2 dynamics of agricultural production in the republic (thousand tons) № indicators 1991 year 2018 year 2019 year 2020 year 2021 year 2022 year 1. don 1899 8263,8 8116,5 7288,5 6553,5 7437,8 2. cotton 5058 3300 2900,2 2853,9 2285,6 2691,7 3. potatoes 336 2958,3 3014,6 2793,7 2911,9 3089,2 4. vegetable 2843 11272,5 11433,6 10219,9 9760,3 10215,1 5. poly crops 1000 2045,2 2094,8 2031,0 1837,0 2068,7 6. fruits 660 3042,7 3076,3 2614,9 2706,2 2752,7 7. grapes 745 1735,3 1746,9 1747,9 1748,9 1749,9 in order to increase the efficiency of the produced products, it is necessary to rationally implement the works and activities that ensure the saving of production and management costs. for this purpose, it is necessary to mechanize production, harvesting, storage processes, full and effective use of means of production, introduction of new equipment, advanced technologies, material and moral stimulation of employees. based on the results of the research, in the future, it is advisable to keep the cotton cultivation areas around 95-100 thousand hectares in the period when the water supply is normal. because this amount makes up 25-30% of the total cultivated area in years with good water supply, and the cotton fields of such weight make it possible to follow scientifically based crop rotation system in the agriculture of the republic of karakalpakistan. in some cases, unplanned planting of cotton in unplanned areas or planting of cotton in areas with low productivity and high soil salinity causes significant financial damage to the economy of cottongrowing farmers. this damage should be assessed as damage to the republic's economy. wide implementation of resource-saving innovative technologies in our country is important. cotton farming is developing in the republic as a result of the use of innovative technologies. in particular, due to the use of the drug "gumimax-dvoynaya sila" in cotton cultivation, the weight of raw materials belonging to the first variety is high, on average it is 85-90 percent. this provides additional income to farms. experiments show that this drug has a positive effect on the growth and development of cotton. indeed, from the observations, the length of the cotton stem was 54.3 cm from the control field, while it was 3.3-8.3 cm higher in the fields treated with gumimax. it was also noted that the number of bolls, buds, bolls and bolls of cotton in the control field was much lower than that of cotton in other fields. for example, on august 1, the number of bolls in one cotton boll was 5.5 in the field under control, 6.5 in the field where gumimax was applied at the rate of 0.3 l/ha, and 6.6 in the control field on september 1, gumimax 0 it was 8.0 pcs. american journal of business management, economics and banking volume 22 march 2024 p a g e | 11 www.americanjournal.org it should be noted that the highest or 16.2% more number of opened bolls than the control field was observed in cotton fields where gumimax fertilizer was applied at the rate of 0.3 l/ha. in the areas where gumimax drug was applied at the rate of 0.3 liters, the average weight of raw cotton in each boll of cotton was 5.98 grams. this is 0.27 grams or 4.7 percent more than the cotton boll weight in the control plots. from the experiments, it was found that as the rate of use of gumimax drug decreases, the weight of cotton raw material in one bag decreases proportionally. calculations show that the cotton yield in the fields where gumimax was applied was on average 2.2-4.2 ts/ha higher than in the control fields. when the gumimax drug was applied at the rate of 0.3 l/ha at the beginning of the cotton budding and flowering period, the yield was the highest 34.4 t/ha. also, it was determined that the relative breaking strength of 1000 seed weight of 3-10 g fiber increased by 0.5-1.0 gk/tex. according to the experiments, the economic efficiency of the gumimax drug is high, and its use ensures an additional yield of 3.68 t/ha from 1 hectare of cotton area. calculations based on the results of the analysis show that the use of the drug "gumimax-dvoynaya sila" will increase cotton productivity, increase the weight of the first grade in the composition of cotton raw materials, increase the average sales estimate and the level of profitability. table 3 effect of gumimax stimulant on cotton yield experience options bag weight, g cotton yield, tons/ha in addition s/ha % control 5,0 27,7 suspension urea 5+7 kg/ha 5,0 28,8 0,6 102,2 gummimax 0.8 l/t 5,3 31,2 3,5 112,6 gummimax 0.8 l/t 0.3+0.3 l/ha 5,4 32,3 4,6 116,6 gummimax 1.0 l/t 5,3 31,6 3,9 114,1 gummimax 1.0 l/t 0.3+0.3 l/ha 5,3 31,2 4,7 117,0 according to table 4, the yield in the treatment with the drug "gumimax-dvoynaya sila" was 29 centners, compared to the yield in the untreated state (25 ts/ha) by 4 centners, compared to the yield in the suspension treatment (26/ha) by 3 centners, when treated with gumimaks+suspension, the productivity increased by 2 centners compared to (27 ts/ha). the increase in productivity had an effect on the increase in profit and the increase in the level of profitability. the rate of profitability is 34 percent in the treatment with the drug "gumimax-dvoynaya sila", and cotton cultivation in the untreated state has increased by 13 points compared to the rate of profitability. currently, practical work on the use of drip irrigation is being carried out in our country. drip irrigation allows not only to save water, but also to increase land productivity, prevent environmental pollution, drastically reduce the amount of wastewater, improve the quality of water in water sources, and ensure environmental safety. in order to solve the identified problems in increasing the efficiency of cotton cultivation in agricultural enterprises in the republic, it is necessary to implement the following measures: selection of seeds according to the level of soil fertility; good organization of irrigation and reclamation works; american journal of business management, economics and banking volume 22 march 2024 p a g e | 12 www.americanjournal.org improvement of the economic support system for cotton-growing enterprises; improvement of mutual legal relations of agricultural enterprises with training and service organizations; introduction of mechanisms that ensure full fulfillment of obligations in connection with contracts concluded with farms; further development of farms, small business, entrepreneurship, industry in rural areas; formation of market and social infrastructure and further improvement of their activities. summary one of the main factors in increasing the level of production of agricultural products and increasing their productivity is the application and wide distribution of innovations. practice shows that innovation is the most important source of improving product quality, saving labor and material costs, increasing labor productivity, improving production, and increasing industry efficiency. as a result of the development of innovations, the competitiveness of manufactured products and enterprises in the domestic and foreign markets and the improvement of the socio-economic situation in the country's agrarian sector will be ensured. the main directions of introduction of innovations in agriculture are: improvement of the ecological and reclamation condition of irrigated lands and improvement of water-saving technologies; improvement of modern methods of maintaining and increasing soil fertility; development of resource-saving technologies for obtaining high-quality and abundant harvests from crops; creation of new varieties of cotton and grain suitable for different soil-climate and extreme conditions, quick-ripening, fruitful, resistant to diseases and pests and improvement of the primary seed production system; development and implementation of specific agrotechnical measures for cultivation of new acclimatized and promising varieties; effective use of local raw materials and resources; introduction of integrated methods of protection of agricultural plants; creation of new techniques and their introduction into production. ..references 1. galimova f.r., dekhkanova n.s., narinbaeva g.k. management in agriculture. textbook. t.: tdau, 2020. pages 231-242. 2. narinbaeva.g.k. organization of agribusiness. t.: tosh.dau, 2020. pages 137-142. 3. g. narinbaeva. "current state of production and management in farming of uzbekistan" international journal of research culture society: impact factor: 5.245 india, , 2019. #3(1) pp. 1278-1282. 4. achilov. m.g. narinbaeva. ways of fruit and vegetable production development in uzbekistan. international journal of multidisciplinary research in science, engineering, technology & management (ijmrsetm) | issn: 2395-7639 | www.ijmrsetm.com| impact factor: 7.580. american journal of business management, economics and banking issn (e): 2832-8078 volume 6, | nov., 2022 p a g e | 34 www.americanjournal.org essence, objectives, advantages and prospects for the development of internet marketing samar alikulov candidate of economic sciences, associate professor, samarkand branch of tashkent state university of economics, uzbekistan a b s t r a c t k e y w o r d s information technologies cover all spheres of our life. marketing is no exception. the rapid development of devices and free access to the internet from anywhere in the world are the main factors influencing the formation of marketing trends of the future and are an urgent topic at the present stage. marketing of the future is based on the fact that the means of innovative technologies occupy a central place in the interaction between seller and buyer. marketing, marketing, information technology, marketing tools, internet. internet marketing is a set of marketing tools that help attract new customers and retain old ones. in terms of tools and channels of promotion, internet marketing is very similar to digital market [1]. a huge advantage of the tools they use is accessibility almost anyone can make a website or start running a page of their business on social networks, but the first problems of internet marketing immediately manifests themselves. there are various approaches to the concept of internet marketing in the scientific literature. let's look at some of them. thus, i.v. alekseev considers internet marketing as a section of marketing aimed at studying the principles of interaction of economic entities on the internet in order to develop universal systems for making profit and meeting the social needs of society [2]. vekshinsky a.a. under the term “internet-marketing” we mean the theory, methodology and organization of marketing and the internet in the hypermedia environment. kitaeva e.o. believes that internet marketing is often considered as the promotion of any goods and services on the internet, advertising on the world wide web, banner advertising. a.d. baranov notes that usually, internet marketing is understood to mean one thing: contextual advertising, banner advertising, seo, smm or even e-mail marketing. in fact, internet marketing is all taken together, each of which must be used in stages. we share the point of view of a.d. baranov and believe that in the combination of “internet marketing”, the key concept is marketing, and not the internet at all. of course, the internet provides huge technical opportunities, but they do not work by themselves. they can only be made effective by meaningful content, an interesting offer and correct presentation. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 35 www.americanjournal.org these and many other definitions can be combined into one. as a result, we get that internet marketing is a set of measures in the internet environment that contribute to business development. in other words, it is any marketing activity that is implemented on the internet. it should be noted that this concept can be an integral part of classical marketing or used independently. tasks that are solved by means of internet marketing tools: increase in sales due to the synergistic effect; optimization of advertising costs to attract customers; increasing awareness of the company's products and services; attracting the target audience to the company's website; increase the loyalty of existing customers; advertising and information support for the launch of new products on the market; selection of information distribution channels taking into account the characteristics of the target audience. internet marketing has a number of special advantages: a potential client can quickly view information about the service goods; helps to save the advertising budget; expands boundaries you can control the process from anywhere in the world; more accessible and time-consuming advertising channels; the ability to advertise only to the target audience targeting; detailed statistics, conversion tracking, ctr, roi and other indicators. the future certainly belongs to internet marketing, although it is still difficult to predict how actively it will develop, because every day there are many new applications, sites and services that can change everything overnight and set a new vector of development. nevertheless, the prospects for the development of marketing in the network are the rosiest. over the past few years, mobile traffic has already surpassed computer traffic. based on this, most companies took a different look at brand promotion on the web. today, many sellers not only have a mobile version of their website, but also offer applications for smart phones. so that consumers can make purchases quickly. some brands actively maintain their pages on social networks, others keep in touch with customers through micro blogs (twitter) and instagram. advertising in social media and applications is also becoming increasingly popular. this was the driver for the development of omnichannel retail. an approach to trading that implies the simultaneous use of all physical (offline) and digital (online) communication channels and assumes an innovative opportunity to fully trace the path of the client. smirnov a.g. argues that the main advantages of promoting goods using mobile resources are: reasonable cost; advanced targeting capabilities (target audience selection); versatility (suitable for almost all fields of activity); high efficiency, since the involvement of users to the resource can be unlimited. kitaeva e.o. highlights the main problems of internet marketing: 1. search for the target audience. often the target audience is defined as men and women from 25 to 40 years old. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 36 www.americanjournal.org 2. selection of traffic channels. the first place where all business owners go is yandex. direct. although there are many other channels from google adwor and targeting on social networks, then sra networks and teasers. 3. there is no automation most of the settings and processes are custom-made, accordingly, many important points are missed, the budget is merged, and customers pass by. solution: machine learning. 4. end-to-end analytics most often simply not done. only the number of incoming requests and the conversion rate are recorded. 5. synchronization of work when different performers work on the same project (some make the site and others promote it), mistakes inevitably arise that harm the customer. 6. low frame rate. social networks and mobile applications offer a wide range of information services: 1) “one-click purchase” the introduction of the “buy” button, which allows you to instantly make a purchase of a product you like, without a long search for a link to go (this function is implemented in some popular applications such as twitter and instagram); 2) “visualization” video content instead of dry text (youtube and facebook); 3) “user content” allows you to study the reviews of other buyers (the pages of popular bloggers on instagram have become a new and very successful place for advertising); a powerful driver for improving the advertising of the future is the development of artificial intelligence (ai). deeplearing (complex learning algorithms for modelling high-level abstractions) provide various prospects for using ai in marketing, from global big data analysis to self-writing unique content. already today, ai affects search results, tracks user requests, and also recognizes certain objects in the images. the most promising opportunities for the use of ai in marketing are “smart stores” that help to increase convenience when shopping. interactive shelves you will no longer have to carry heavy baskets to the hypermarket and search for the right product. it will only be enough to drag the necessary goods on the electronic scoreboard into the basket and get it packed at the exit. “virtual” supermarkets all products have a qr code, taking a photo of which customers can order products. all purchases will be delivered directly to the buyer. radio frequency tags instead of barcodes, the purchase amount can be found out thanks to the remote information reading system. virtual fitting rooms will help you quickly choose the right thing without tedious fitting rooms; payment for goods using a smartphone it is enough to attach the device to the terminal for payment. the hologram is one of the most promising areas in marketing. it will allow you to influence the buyer in any place where he can make a purchase. variants of holographic advertising have been developed, which can be touched, which gives new opportunities for demonstrating goods to customers. new marketing opportunities are also associated with the advent of emotion recognition technology you can determine the mood of any person using his smartphone. in practice, the content can be selected with a view to the emotional state of the user. american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 37 www.americanjournal.org references 1. акулич, м.в. интернет-маркетинг: учебник для бакалавров / м.в. акулич. м.: дашков и к, 2016. 352 c. 2. сафаров а. и., ризаев и. и. факторы развитие экотуризма в узбекистане //глобальные проблемы модернизации национальной экономики. – 2022. – с. 629-633. 3. alikulov x., haqqulov n. q. духовная зрелость и философское мышление зависимость развития //theoretical & applied science. – 2020. – №. 4. – с. 164-167. 4. алексеев и.в. теоретико-методологические аспекты исследования категории «интернетмаркетинг» // транспортное дело россии. 2014. №3. с. 14-18 5. аликулов с. а., ризаев и. и. синергетический анализ онтологической сущности процесса либерализации общества //социальные институты в правовом измерении: теория и практика. – 2022. – с. 280-286. 6. эргашева м. х. таълим жараёнини тадқиқ этишда синергетик методологиянинг аҳамияти //современное образование (узбекистан). – 2020. – №. 10 (95). – с. 32-39. 7. ризаев и. и., муминова з. о. профессиональная подготовка личности: оздоровление и духовное воспитание //система менеджмента качества в вузе: здоровье, образованность, конкурентоспособность. – 2021. – с. 264-268. 8. баранов, а.д. прогноз возврата инвестиций в интернет-маркетинг: настольная книга маркетолога. взгляд практика / а. баранов. м.: иц риор, 2017. 85 c. 9. ризаев и. и. и др. коэволюционное развитие самоорганизации: взаимосвязь стабильности и нестабильности в социальной системе //человек. знак. техника: ii междунар. междисциплинар. молодеж. форум:[сб. ст.].-текст: электронный.-текст: электронный.2022. – 2022. 10. rizaev i. i. the structure of the social system as the basis for the self-organization of society //scientific bulletin of namangan state university. – 2019. – т. 1. – №. 7. – с. 151-156. 11. большакова, л.в. интернет-маркетинг санаторно-курортных услуг. учебно-методическое пособие / л.в. большакова. м.: финансы и статистика, 2017. 160 c. 12. тураев б. о. информационное свойство пространства и времени //естествознание и время. – 1992. 13. husan m. dialectics of potentiality and virtuality in space and time //european scholar journal. – 2022. – т. 3. – №. 1. – с. 40-42. 14. эргашев и. и. пути совершенствования инвестиции маркетинга //интеграция наук. – 2017. – №. 6. – с. 123-125. 15. векшинский а.а., тывин л.ф. интернет-маркетинг как новое направление в современной концепции маркетинга взаимодействия // технико-технологические проблемы сервиса. 2017. №2. с. 103. 16. саматов х., исомиддинов й. система социальной защиты «химсистема социальной защиты «химойят» как в система общения с людьми по идея ходжа ахрара валиойят» как в система общения с людьми по идея ходжа ахрара вали //interconf. – 2020. 17. китаева е.о. интернет-маркетинг инструмент бизнес-пространства интернета // вестник мгуп. 2017. №2. с. 66. 18. юлдашева д. ю. цифровые технологии в учебном процессе в условиях пандемии //конференция состоялась 5 марта 2022 года на базе ташкентского государственного american journal of business management, economics and banking volume 6, nov., 2022 p a g e | 38 www.americanjournal.org стоматологического института по адресу: республика узбекистан, 100047, г. ташкент, ул. махтумкули, 103. цель конференции–знакомство и обмен опытом в обучении и в работе с цифровыми данными, технологиями их применения в гуманитарных. – с. 100. 19. усмонов ф. н., усмонова л. р. рациональный анализ восточной миниатюры //молодой ученый. – 2016. – №. 2. – с. 987-991. 20. смирнов, а.г. лидовое побоище. маркетинговые инструменты для продвижения бизнеса в интернете / а. смирнов, ю. суздаль. спб.: иг весь, 2015. 176 c. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 97 www.americanjournal.org the role of foreign indirect investment in the development of iraq's securities market for a while (2009–2021) m.m. hawraa kadhim jari university of al-qadisiyah, college of administration and economics, department of banking and financial sciences, iraq, email: hawraa.kadhim22@qu.edu.iq a b s t r a c t k e y w o r d s the purpose of the research is to identify the role of foreign indirect investment in the development and strengthening of iraq ' 's stock market because of its importance in supporting the economy and achieving economic development in developing countries, particularly in developing countries. to achieve the objective of the research, the special indicators of non-iraqi (rolled shares and value traded) were analysed through the analysis of the traded stock and purchases as well as the value sold and purchases of non-iraqi stock traded for non-iraqi stock market for the period 2009 (2021). the searcher adopted the method of analysis of study data. the research came up with important findings: the proportion of the contribution of purchased and sold stock traded in iraq's stock market during the period of study fell significantly, from the last year of study (12.44%) in 2021 to the last year of study, after it was 37.26% in 2009, at the beginning of the study. foreign indirect investment, iraq's securities market. introduction most countries are seeking to attract foreign investment to their domestic economies, particularly developing countries. this is because of the shortage of domestic funds and the inadequacy of them to cover the financing needs of economic development operations. countries have begun to seek an alternative external source of development that represents, inter alia, foreign investment and foreign loans. as a result of the risk that loans may entail, they have sought to attract foreign investment in both direct and indirect terms as an engine of economic growth that contributes to increasing the productive capacity of the country's economy, as well as the desire of the foreign investor and his permanent endeavour to exploit the investment opportunities available in most relatively cheap countries that do not exist in other countries. given the wide scope for the study of foreign investment, and its importance in the attractive economies of developing american journal of business management, economics and banking volume 23 april 2024 p a g e | 98 www.americanjournal.org countries, it is important to recognize the role of foreign indirect investment in stimulating the stock market. the first one. structure of research and some previous studies axis one: the structure of the research. first: the importance of research: although the subject of foreign indirect investment is relatively old, it is constantly renewed, since it has become important in most countries of the world, particularly developing countries, to achieve their development goals, by contributing to iraq's stock market by analysing its contribution to financial market indicators. ii. the problem of looking the main problem of research is the question: is there a role for foreign indirect investment in the development of iraq's securities market? iii. objective of the research identification of the characteristics of foreign indirect investment and its role in developing and strengthening iraq's stock market through analysis of the current shares sold, the value sold and the current shares purchased and the value purchased for the duration (2009 – 2021) iv. the psychology of the research the theory of research is: there is no role for foreign indirect investment in the development of iraq's stock market. v: search boundaries time limits: duration (2009/ 2021). spatial boundaries: iraq stock exchange for 2009 (2021) . axis ii: previous studies iraqi studies 1. the hussein, kazem study (2012): measuring the impact of fdi on some macroeconomic variables in developing countries (india is a study case). the study aimed to measure the impact of fdi flows on some quantitative economic variables in developing countries (india as a model). the research into the 1990s and the beginning of the new millennium was concerned with its distinctive economic reform policies in most countries, including india, and the accompanying inflows of direct and indirect investment. the researcher adopted the descriptive approach and standard analytical methodology. the study showed a piecemeal relationship between fdi and many economic variables in india, such as gross domestic product (gdp) and cash supply in narrow terms, savings, price levels and private consumption. the study recommends that the private sector be given a leading role in economic activity by completing the american journal of business management, economics and banking volume 23 april 2024 p a g e | 99 www.americanjournal.org implementation of privatization programmes in india, taking into account a high degree of transparency in the programme in terms of prices and sales timing. 2study dr. mohamed, hassan (2022) : the impact of fdi on equity values by mediating the financing structure is an analytical study in iraq's securities market, and the objective of the research is to determine the level of impact of foreign indirect investment on firms of the research sample in terms of market value, real value of equity and financing structure. the study concluded that the foreign indirect investment turnover rate would have a positive impact on the value of equity in the financial market and the financing structure of the research sample companies, which would maximize the market value of the stock and make it more stable in the financial market and thus reduce the volatility of equity returns, which would reduce the risk of equity, which would have an impact on the lowering of the required rate of return, which would represent the cost of proprietary financing. this would result in lowering the total cost of corporate finance and would result in maximizing the value of the company. the study recommends that the government should provide a favourable climate for foreign indirect investment. the stable economic and political situation is one of the most important factors affecting attracting foreign investors and supporting investment decisions in the host country. arab studies 1 the purpose of the study was to identify the implications of foreign investment in the egyptian stock market as an emerging market. the study community was egypt's stock market 2004 2007. the researcher adopted the analytical approach. the study concluded that the importance of foreign indirect investment has emerged through its positive impact on economic growth. it also increases the liquidity of emerging stock markets and helps them to develop their efficiency, making them deeper and wider. the study recommends structural reforms to reduce the risks of changes that could undermine investors' confidence in financial or economic problems. 2. plaque study, bazor (2012) : indirect foreign investment (fdi) and its role in the operationalization of the stock market. the objective of the study is to respond to the advantages of foreign indirect investment in attractive states and to the extent that such investment contributes to the activation and growth of the stock market. the researcher adopted the descriptive approach. the study concludes that, since capital flows in stock markets have not tended to increase capital and to finance the expansion of enterprise activity and raise the rate of investment, the expected effects of such flows will mainly be diverted to raise the value of domestic currency. the study recommends the need for careful financial control over capital flows by examining foreign investors ' behaviour within emerging markets to develop appropriate policies towards such behaviour and market stability. american journal of business management, economics and banking volume 23 april 2024 p a g e | 100 www.americanjournal.org foreign studies sameh (2018): the impact of foreign indirect investment in the primary market, evidence on amman stock exchange the purpose of this research is to show the independent variables measured, i.e. net indirect foreign investment, national deposits in jordanian banks, government public debt, gross domestic product (gdp), and offer money (m2) to the new publications of companies listed on the amman stock exchange during the period covered by the research (2005-2016). this analysis is necessary to determine the overall impact of all independent variables on the dependent variable. a simple regression analysis was used. financial data were collected through the amman stock exchange website and reports issued by the jordanian central bank. the study found that there was a moral impact at the level of 0.10 for all independent study variables: foreign direct investment, domestic government debt, gross domestic product (gdp) and cash supply (m2 on new issuances in primary markets). the results of this study are very important for jordanian state decision-makers, highlighting the importance of each of the study variables in expanding the list or investing in new projects because of the importance of these enterprises in increasing the economy, the growth and employment of economic resources have been halted. axis 3: what distinguishes this study from previous studies these studies have served to strengthen the theoretical aspect of research by showing the role of foreign indirect investment in the operationalization of the stock market. another study has shown the impact of foreign indirect investment on certain economic variables. our current study has the advantage of demonstrating the role of foreign indirect investment in the development of iraq's stock market, in particular by analysing the data of indicators (rolled shares and traded value) sold and purchased for non-iraqi and for the period 2009 2021. the second one foreign indirect investment in the stock market axis 1: foreign indirect investment 1. the concept of foreign indirect investment: foreign investment refers to investment outside the national borders of investors, whether an individual, an enterprise or a company in various areas of financial or real investment. it has become one of the most important features of the investment environment, as a result of economic globalization, deregulation and the facilitation of the movement of capital and goods. there has been an overlap between states in international investment. foreign investment flows to developed countries are mostly due to weak and failed investments in developing countries. foreign investment has two types: foreign direct investment and foreign indirect investment. indirect foreign investment is defined as that investment, which is in the form of loans from foreign agencies, individuals, or companies, or in the form of writing in shares and bonds issued by the polarized or capital attraction, or in its companies or public bodies, american journal of business management, economics and banking volume 23 april 2024 p a g e | 101 www.americanjournal.org with the foreign investor not having the right to administer and control the company. (samra, 2006, p. 66) it is also : known that foreign investors own part or all of the investment in the projects in question and have the right to participate in the organization and management. this is one of their powers, which they obtain from their absolute ownership of the investment project. financial employment takes the form of financial assets such as securities, including bonds and shares. it may also extend to loans of all kinds in states attracting investment. the intention is speculation. (beautiful, 2002) indirect foreign investment can be defined as foreign investors' participation in or ownership of investment projects within the country that are attractive to investment, have the right to participate in regulation and management, and can transfer expertise, competence and technology to the country in which they are located. there are several forms of fdi, including: (key delivery projects, licensing contracts (concession), management contracts, manufacturing contracts, production/concession contracts and international manufacturing and subcontracting, agency contracts) . 2. the importance of foreign indirect investment as it reflects the globalization of financial markets, fdi continues to grow, so it is of great importance because of its positive effects and benefits, especially in host countries, such as: afdi has benefits for the real sector of the economy and can be a source of foreign investment, especially for developing countries with low capital. (ahmed, 2013, p. 34). b. foreign investment in securities increases market liquidity and helps it to develop efficiency, and also makes it deeper and wider. (latifi mr., 2006, p. 34) v. countries in the process of growth have access to global capital in the form of indirect and direct investment flows as a reason for significantly reducing the cost of project financing. (amira khamallah, 2005, p. 47) c. foreign participation in the domestic capital market will encourage the development of reporting systems and accounting rules and a higher level of disclosure of performance information to companies, as a result of the foreign investor's request, particularly the institutional investor, that there be an advanced level of regulatory rules and procedures for dealing and disclosure, which will increase the level of growth and efficiency of emerging markets (amira, god forbid, 2005, p. 47) d. indirect foreign investment enables discipline and experience in the domestic capital market. an investor has more incentives to allocate and spend resources in the search for new investment opportunities. in turn, it encourages competition among many firms for finance. this in turn helps to upgrade and develop the domestic economy. it increases the efficiency of the domestic market by reaching out to foreign financial institutions with advanced financial technology that have an impact on attracting more flows and increasing knowledge of those markets, which in turn encourages foreign investment. (thanks, 2004, p.228) american journal of business management, economics and banking volume 23 april 2024 p a g e | 102 www.americanjournal.org j. directing foreign investments to domestic stock markets means the movement of capital to that country, one of the advantages of which is that it increases the demand for currency in the markets and leads to an increase in the supply and subsequent decline in the prices of capital-earners (this means a rise in the local currency when compared to its foreign exchange value). axis two : paper markets first : the concept of a stock market. there are many different definitions of financial markets, including: • stock exchange: this term is called the market that has been allocated to the sale and purchase of securities through investment institutions represented by intermediaries, investment banks and brokers, and which carries out and completes exchange transactions for such securities. (badger , others, 1969, p 53) it is also known as the system by which both sellers and buyers collect a specific financial asset or type of paper, and investors can sell and buy several shares and bonds within this market, through operating companies or brokers working in such areas, but the presence at the central stock market headquarters has become less important because of the growth and development of modern communications and the emergence of different communication networks that allow brokering companies in different countries to operate from outside the market.(l.rousscau and wachtel, 2005,2). it is a framework through which savings units willing to invest are combined with disability units in need of such funds to reinvest them through market-based and specialized groups and effective means of communication are required. (callee et al. 2016:180) it can be defined: it is a market for the sale and purchase of securities, in which types of securities, stocks, and bonds are traded and invested. ii. functions of financial markets: there are several functions, including: (greas, 1999: 43-46). • an investor's stock market is necessary for the investor to recover its savings, as the market collects funds and encourages savings. • the market should take into account the determination of an appropriate price for papers. • avoid violent and powerful price changes. the market offers diverse investment opportunities with varying risks. iii: characteristics of financial markets: the most prominent characteristics are al-hasnawi, 2017:34. • operational efficiency: the ability of the financial market to transfer resources and funds to those in need at a lower cost than known transactions. • efficient allocation of resources: the core function of the financial market is how to transfer and transfer surplus funds from those who have surplus to those who need it. • liquidity provision: the market is the only investor that can sell paper and convert it into cash. american journal of business management, economics and banking volume 23 april 2024 p a g e | 103 www.americanjournal.org provides information and responds immediately to new events: the market is a very important source of information on the investments being traded. iv. the role and importance of the stock market in economic development the role and importance of markets in economic development can be explained by the following: a) it affects the national economy, being an unlimited tool and its effect in different areas and aspects of economic activity. (hossein, 1999, 20) b.) the financial market plays a key role in the implementation of the monetary policy of the state. (appleyard et al., 2005, 503) the markets provide an effective balance between supply and demand forces and provide full freedom for exchanges and transactions. (townsend and ueda, 2003) it attracts unfilled surplus and capital capital in the national economy converts it from inactive money to working money and plays an active role in the country's economic cycle. (ray , 2002, 14 ). (c) stock exchanges provide real resources to finance projects by offering shares or bonds or reselling them on the market. (levine, 2004, 23) it is a key instrument that promotes economic development in the country, including utilization, acquisition, and appropriate investment returns, and ownership. (alfaro, et.al., 2002, 19). the effectiveness of markets makes them more capable of achieving their goals and mission to consolidate and support the economic stability of nations through their own. (andritzy, 2007, 28) (providing a vital motivation and incentive to the public of investors to achieve a fair price and to protect all parties in exchange, and providing and recycling a quantity of money to achieve necessary liquidity for society, raising public awareness of investors, and raising the level of production in the economy. v: papers in circulation on the stock market many of the securities traded in the financial market are issued by banks, including bonds and shares, which are an instrument that establishes the investor's right to a particular asset and can be considered as a document of ownership or debt that indicates the investor's rights. (hanafi, 2003, 24) "instruments or documents proving the owner's right to ownership of part of the net assets or assets of the company, and the profit resulting from its investment such as shares or the right to a debt on the company that is the exporter of the paper such as bonds or the return right such as incorporation shares or that are marketable in the capital market such as equity and bonds" (preware, 2002, 29) the securities traded in the financial market (indian, 1993, p. 275), (equity, bonds, hybrid securities and derivatives) can be classified and briefly explained: the shareholder is a partner in the stock company and has the right to claim his share of the profits and also to bear the loss in case of loss. american journal of business management, economics and banking volume 23 april 2024 p a g e | 104 www.americanjournal.org 1. shares: "sates are among the most common securities used by investors on the stock market and are a title document representing a portion or share of the capital of a company, issued by public equity companies to form its capital, with a single nominal value." (craja et al., 2002, 89) 2. bonds: a long-term debt instrument issued by the government or company, in the form of a contract and by this contract, the borrower (the source of the bond) accepts to pay the value of the bond with interest due at a specified time to the holder of the bond, with a due date and certain nominal values of the bond at a specified rate of interest. (zarari and vagina, 2001: 160-161) 3. derivatives: financial instruments that do not have subjective values but are derived from the values of the assets or other financial instruments to which they relate, defined by the international monetary fund (imf) as contracts whose value depends on the price of the financial assets under contract but which do not require or require investment in the principal of the assets. in the future, derivatives are settled and their values depend on the origin of the contract from which they are derived, do not require an initial investment or a small initial amount in comparison with the value of the contract, and may end with a monetary settlement without transfer of ownership of the asset. (hasnawi, 2017: 105-110) 4. hybrid securities: securities whose characteristics are close to bonds and shares, or which belong to one of the two groups, are either shares or bonds but bear some of the characteristics of the other group and are classified as (priority shares in profits, investment certificates, equity bonds). vi. the iraq security market • market formation the iraqi stock exchange was established by act no. 74 of 2004 as a private legal personality and is a non-profit organization that is administratively and financially independent and that operates based on its objectives as set out in section 2 of act no. 74 of 2004, published in iraqi facts, no. 3983 of june 2004, no. 62 of 2004. his duties and duties are derived from his legal objectives and are subject to the control of the iraqi securities commission. • the objectives of iraq's securities market according to section 2 of act no. 74 of 2004, the purpose of the iraqi stock exchange is to carry out the following tasks and objectives (iraq stock exchange, 2021). 1. organization and training of members and companies on the market 2. promotes the interests of investors in a free, secure, efficient, competitive and transparent market. 3. organizes and simplifies effective, fair and regular transactions of securities, including clearing and settlement of such transactions. 4. regulates the transactions of members in all matters relating to the sale and purchase of securities and defines the rights and obligations of the parties and the means of protecting their legitimate interests. american journal of business management, economics and banking volume 23 april 2024 p a g e | 105 www.americanjournal.org 5. to develop iraq's financial market to serve the iraqi national economy and to help companies build their investment capital. 6. to sensitize iraqi and non-iraqi investors on market investment opportunities. 7. it collects, analyses and disseminates statistics on the information needed to achieve the stated goals. 8. world markets and markets in the arab world must be approached to develop the market. 9. undertake other necessary activities and services in support of its objectives. researcher three analysis of the role of foreign indirect investment in iraq's securities market. in this research, the role of foreign indirect investment in iraq's long-term securities market will be analysed. ( 2009 – 2021 ) 1. analysis of current purchased stock and value purchased by non-iraqi for the duration (2009 -2021 ) table ( 1 ) non-iraqi purchasing stock and value traded year arrows in circulation (million shares) purchases in progress (million dinars) 2009 46107 105710 2010 36689 62888 2011 82723 176499 2012 28476 54048 2013 100249 1149809 2014 76575 112548 2015 72204 73203 2016 74919 53832 2017 80004 62077 2018 28594 52632 2019 30585 20979 2020 40015 33202 2021 52119 49669 source/researcher's work based on annual iraqi stock exchange bulletins for duration (20092021) we notice from table (1) a clear fluctuation, up and down, during the study period, as the number of shares purchased and traded by non-iraqis reached (46,107) million shares and the value of purchases traded reached (105,710) million dinars in 2009. then the number of shares purchased and traded by non-iraqis decreased, reaching (36,689) million shares and the value of traded purchases amounted to (62,888) million dinars in 2010. the reason for the decline was due to the security and political situation in the country. then the number of shares purchased by non-iraqis increased, reaching (82,723) million shares, and the value of traded purchases amounted to (176,499) million dinars in 2011, the reason for the increase was the improvement of the security situation in the country. then the number of purchased shares decreased significantly, reaching (28,476) million shares and the american journal of business management, economics and banking volume 23 april 2024 p a g e | 106 www.americanjournal.org value of purchased shares in circulation amounted to (54,048) million dinars in 2012. after that, the number of purchased shares increased significantly, reaching (100,249) million shares and the value. traded purchases amounted to (1,149,809) million dinars in 2013 due to the improvement in the political and economic situation in the country. then the number of purchased shares decreased, reaching (76,575) million shares and the value of traded purchases amounted to (112,548) million dinars in 2014, and the number of purchased shares decreased further, reaching (( 72,204 (million) shares and the value of traded purchases amounted to (73,203) million dinars in the year 2015. the reason for the decline is due to the poor security and political situation and the entry of isis into iraq, which hurt the economic situation. then the number of purchased shares reached (74,919) million shares and the value of traded purchases ( 53,832 million dinars in 2016, then the number of purchased shares increased to (80,004) million shares and the value of purchased traded shares to (62,077) million dinars in 2017. the reason for the increase is due to the improvement of the security situation in the country, then it decreased again and the number of purchased shares reached (28,594). (1 million shares and the value of traded purchases was (52,632) million dinars in 2018, then the number of purchased shares reached (30,585) million shares, and the value of traded purchases reached (20,979) million dinars in 2019, then the number of purchased shares increased and reached (40,015) million shares and the value traded purchases amounted to (33,202) million dinars in 2020, and continued to rise, as the number of purchased shares reached (52,119) million shares and the value of traded purchases reached (49,669) million dinars in 2021. the reason for the increase is due to the improvement of the country’s political and economic conditions. 2. analysis of the shares sold in circulation and the current value of the shares sold to non-iraqi for the duration(2009-2021) table ( 2 ) sold stock in circulation and the value in circulation of non-iraqi stock in sale year sold stock traded (million shares) current value of equity sold (million dinars) 2009 32619 82262 2010 5850 8320 2011 18723 48848 2012 36086 56085 2013 40554 169654 2014 56291 82483 2015 182287 113502 2016 59414 38126 2017 45832 46569 2018 41190 34457 2019 36866 35017 2020 39834 27650 2021 60845 49244 source/researcher's work based on annual iraqi stock exchange bulletins for duration (2009-2021) american journal of business management, economics and banking volume 23 april 2024 p a g e | 107 www.americanjournal.org we note from table 2 that there has been a marked increase and decline in the duration of the study of each of the traded shares sold and the value sold. the number of sold shares sold to non-iraqi was 32619 million. the value sold to non-iraqi was 8262 million dinars in 2009. the number of sold shares sold to non-iraqis decreased to 5850 million. the value sold to non-iraqi was 8319 million dinars in 2010. the reason for the decline is the deteriorating security and political situation in the country. the number sold to non-iraqi shares increased to 18723 million and the value sold to be sold to 48848 million dinars in 2011. the increase is due to the improvement in the country's security situation. the number of sold shares continued to rise to 36086 million and the value sold to be sold to 56085 million dinars in 2012,the number of shares sold continued to rise, reaching 40553 million and the value sold in 2013 to 169655 million dinars, owing to the improvement in the political and economic situation in the country. the number of shares sold to 56291 million and the value sold to 82483 million dinars in 2014, owing to the significant decline in the value sold owing to the poor security conditions in the country and the entry of isis terrorist gangs. the number of shares sold increased to 182287 million and the value sold to 182287 million. the trend was 113502 million dinars in 2015 owing to an improvement in the security and political situation, which has a positive impact on the economic situation. it then declined, bringing the number of shares sold to 5914 million and the value sold in 2016 to 38126 million dinars; the number of shares sold fell to $45833 million, and the value sold rose to 46569 million dinars in 2017, the number sold and the value sold to 34457 million dinars in 2018, the number sold to 36866 million dinars, the value sold to 35016 million dinars in 2019, the number sold to 39834 million dinars, the value sold to 27650 million dinars in 2020, the number sold to 60845 million dinars, and the value sold to 49,244 million dinars in 2021. this increase is due to improvements in the country and the security, political and economic conditions. 3. share of shares purchased and sold on iraq ' s long-term securities market ( 2009-2021 ) table ( 3 ) table showing the proportion of shares purchased and sold on the iraqi stock exchange serial year shares purchased and sold 1 number of market shares 2 percentage (%) 1 / 2 1 2009 78726 211291 37.26 2 2010 42539 255660 16.64 3 2011 101446 492372 20.6 4 2012 64562 625640 10.32 5 2013 140803 871182 16.16 6 2014 132866 743852 17.86 7 2015 254491 579640 43.91 8 2016 134323 1038230 12.94 9 2017 125836 1215082 10.36 10 2018 69784 832631 8.38 11 2019 67451 460097 14.66 12 2020 79849 403316 19.80 13 2021 112964 930597 12.14 source / researcher ' s work based on annual iraqi stock exchange bulletins for duration (2009-2021) we note from table 3 that the contribution ratio varied throughout the school, as it was 37.26 per cent in 2009, and then it fell to 16.64% in 2010, after which it increased to american journal of business management, economics and banking volume 23 april 2024 p a g e | 108 www.americanjournal.org 20.6% in 2011, the percentage declined to 10.32 per cent in 2012, owing to the country's precarious security and economic situation, which increased to 16.16 per cent in 2013, and to 17.86 per cent in 2014, which rose to 43.91 per cent in 2015, the percentage fell significantly to 12.94% in 2016 due to poor security conditions in the country and the entry of isil terrorist gangs, which affected the economic and investment situation in the country and continued to decline to 10.36% in 2017, in 2018, the proportion rose slightly to 14.66% in 2019, and it continued to rise to 19.80% in 2020. the percentage declined to 12.14% in 2021 due to the global crisis and the emergence of the corona epidemic, which affected the economic situation in the country and the world. 4. proportion of value contribution purchased and sold on iraq ' s long-term securities market (2009-2021) table ( 4 ) able showing the percentage contribution of value purchased and sold on iraq's securities market serial year value purchased and sold 1 market trading volume 2 percentage % 1 /2 1 2009 187972 411928 45.63 2 2010 71208 400360 17.78 3 2011 225347 941198 23.94 4 2012 110133 893825 12.32 5 2013 1319463 2840220 46.46 6 2014 195031 898316 21.71 7 2015 186705 495112 37.71 8 2016 91958 608126 15.12 9 2017 108646 900154 12.07 10 2018 87089 466477 18.67 11 2019 55996 284914 19.65 12 2020 60852 330385 18.42 13 2021 98913 812699 12.17 source/researcher ' s work based on iraq stock exchange ' s annual bulletin data for duration (2009-2021 ) we note from table 4 that the share of the contribution to fdi varied over the school term, which was 45.63 per cent in 2009, down to 17.78 per cent in 2010, up slightly to 23.94 per cent in 2011, down to 12.32 per cent in 2012, and up significantly to 46.46 per cent in 2013, owing to improved security and economic conditions in the country and new market investments, the percentage declined to 21.71% in 2014, after which it rose to 37.71% in 2015 and then fell to 15.12% in 2016, due to poor conditions in the country and the entry of isis terrorist gangs, which had a clear negative impact on the country's economic situation and foreign investment movement, and declined further to 12.07% in 2017, the share of foreign indirect investment in the market was reduced by the outbreak of the corona epidemic, which affected the economic situation in the country and the world. the decline was 12.17 per cent in 2021. american journal of business management, economics and banking volume 23 april 2024 p a g e | 109 www.americanjournal.org conclusions 1. the stock market is one of the important channels for the accumulation, management and channelling of wealth. it is one of the most important financial institutions to influence the economies of states upwards or downwards. it serves as a mirror reflecting the real economic situation of states, an effective indicator of achievement and the expected quality of performance of companies listed in these markets. 2. from the above study, unless capital flows on the stock market tend to be co-located in capital increases and finance the expansion of project activity and the raising of foreign indirect investment rates and its role in the operationalization of the stock market, the expected impact of such flows will be primarily on the appreciation of the local currency (including negative effects on the competitive status of non-oil exports) and not on the payment of economic growth rates. 3. fdi contributes to many benefits for developing countries, particularly developing countries, including its role in the development and revitalization of stock markets. 4. we note that the share of stock purchased and sold on iraq's stock market during the duration of the study has declined from 37.26 per cent in 2009 at the beginning of the study to 12.14 per cent in 2021. 5. we note that the share of the value purchased and sold on iraq's stock market fell significantly during the period of study, reaching 12.17 per cent in 2021 from 45.63 per cent in 2009 at the beginning of the study. 6. short-term fdi results in instability in the economy of its host states, owing to the likelihood that the foreign investor will make a sudden decision to leave these countries. 7. fdi is an important and modern financial resource for the creation of new enterprises or the expansion of existing ones without resorting to the involvement of foreign investors in enterprise management, and its concept at the macro level is not limited to the portfolio but has many channels through which foreign capital can flow. recommendations • structural reforms are needed to reduce the risk of changes that undermine investor confidence when financial or economic problems exist. • development and modernization of the data and information disclosure and transparency system. this aspect is being pursued by many arab states. we can see a decline in the number of companies listed in their markets as a result of their non-compliance with disclosure standards. • policies and constraints that control demand for foreign (short-term) capital must be put in place to limit their flow in a manner that causes damage to the host state's economy. • long-term investment in securities should be encouraged through certain incentives for investors, such as tax incentives for those who hold their shares for a certain period, as well as free equity grants, etc. • the appropriate investment climate must be provided. the appropriate economic, political and social status of investment is one of the most important factors influencing an investor's decision to invest its funds in the host country. american journal of business management, economics and banking volume 23 april 2024 p a g e | 110 www.americanjournal.org • the personnel of companies involved in securities must be developed and trained by opening training courses and subjecting these workers to tests before they are allowed to work in the field. • investment awareness of individuals must be developed through the establishment of companies specializing in the provision of investment advice and advice, as well as advertising through the media to clarify investments in the stock market. references arab sources 1. dred mohammed samarrai, foreign investment with disabilities and legal guarantees, beirut, centre for studies of arab unity, 2006. 2. peacetime, policy and different forms of foreign investment, university youth foundation, alexandria, 1989, p. 38. 3. amir nov, translation on caspian, thesis on the development of multinational corporations, university press, algiers, 1986, p. 92 4. beauty, sarmad, (2002), "international finance is an entry into structures, processes and tools," university of mosul press. 5. salah hassan ahmed, foreign indirect investment and its role in the regular shares of the iraqi banking sector, letter presented for a phd in business administration, school of administration and economics, university of sulaymaniyah, iraq, 2013. 6. latifi mr. ahmed amin (financial analysis for performance appraisal, audit and investment in exchange), university school, alexandria, egypt, 2nd ed., 2006. 7. amira, according to god mohammed, determinants of foreign direct and indirect investment in the arab economic environment (comparable study between turkey, south korea and egypt), university school, egypt, without edition, 2005. 8. my thanks are maher king, marwan awad, foreign currency and derivatives between theory and application, hamed publishing house, amman, jordan, first edition, 2004. 9. taleb et al., alaa farhan, hyder yunus kazim, mohamed faiz hassan, introduction to the financial institutions department, first edition, karbala center for studies and research, 2016. 10. villages, official, money markets, university of alexandria, 1999. al-hasnawi, salem salal rahi, investment and finance in financial markets, first edition, cairo, united arab marketing and supply company, 2017. 11. hanafi, abdul ghaffar, stock exchange (equity, bonds, investment documents, options), new university publishing house, alexandria, 2003. 12. indian, munir ibrahim, capital market investment instruments: securities and investment funds, bahrain, arab institute of financial and banking studies, 1993. 13. al-hasnawi, salem salal rahi, investment and finance in financial markets, first edition, cairo, united arab marketing and supply company, 2017. 14. prawari, shaaban muhammad islam, stock exchange from an islamic perspective, critical analysis study, damascus, syria, think tank, first edition, 2002. american journal of business management, economics and banking volume 23 april 2024 p a g e | 111 www.americanjournal.org 15. zarari, al-fakr, abdel-naf abdullah, ghazi, financial markets, wael publishing house, amman, 2001. 16. kraja et al., abdulhalim, management and financial analysis: foundations, concepts, applications, second edition, firehouse for publication and distribution, amman, 2002. 17. abd al-hafiz, safout ahmed, the role of foreign investment in the development of private international judgments, university press, alexandria, 2005. 18. abu shenab, forgiven, the impact of foreign indirect investment on the primary market was seen on the amman stock exchange, international journal of management and business research, 2018. 19. transport, emotion, privatization and the stock exchange in egypt, economic pyramid, no. 87, ot, 1994. 20. majid, zia, exchanges (capital markets and tools, stocks and bonds), university youth foundation, alexandria, 2003. 21. chande, adeb qasim, financial markets, opportunities and risks, i1, dehydration of honor, balance of printing, 2013. 22. well, bashir saadoun, a.م.dr. mohammed, iyad tahir, (the impact of foreign indirect investment on equity values by mediating the financing structure, analytical study in iraq's stock market, master's letter, school of administration and economics, baghdad university, 2022). foreign sources 1. badger. ralph , torgerson.w. harold , guttmann. g.harry , investwentprincipls and practices 6th edition , prentichall , 1969. 2. rousseaul. peter and wachtelpaul , 2005 , economic growth and financial depth: is the relationship extinct already ? (ww. stern. nyu. edu / eco / wkpapers / wider. pdf.) 3. hussein. akhaled , finance and growth in egypt.(www. iceg. org / ne / projects / financial / growth. pdf.) 1999. 4. townsend robert and uedakenichi 2003 , financial deeping, inquality , and growth: model – based quantitative evaluation (cier.uchicago. edu / papers / ueda / ueda– townsend. pdf). 5. ray tridip , 2002 financial development and economic growth: arevie of literature.(www. isid. ac. in / planning / slides – is – litre view. pdf). 6. levine ross, 2004 finance and growth: theory and evidence, (econ. brown. edu / fac / forth coming / forth – book – durlauf – finn growth – pdf). 7. alfaro laura, chandaareendom, ozcankalemli and sayekselin , 2002 fol spillovers , financial mark and growth.(www. people. hbs. edu / lalfaro / papers / fdispil / overs). 8. andritzky. r tochen ,2007 capital market development in asmall country of slovenia (www. imf. ory / external / pubs/ ft/ wp / 2007 / wpo 72209. pdf). 9. badger. ralph , torgerson.w. harold , guttmann. g.harry , investwentprincipls and practices 6th edition , prentichall , 1969. american journal of business management, economics and banking volume 23 april 2024 p a g e | 112 www.americanjournal.org 10. eatwell john and taylor hance, 1998 international capital markets and the future of economic policy (www. new school. edu / cepa). 11. appleyard ,r.dennis, jr ,j.field alfred ,cobb , l. steven, international economics ,davidson college , fifth edition ,2005. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 270 www.americanjournal.org influence of international financial organizations on the banking sector namozova maftuna utkirovna tashkent state university of economics 3rd year, bia-40 group namozova.maftuna2004@gmail.com +998977333855 a b s t r a c t k e y w o r d s this study examines the influence of international financial organizations on the banking sector of uzbekistan. by exploring the activities and impact of these organizations within uzbekistan's banking landscape, the research aims to shed light on the extent to which they shape financial policies, regulatory frameworks, and investment patterns. through case studies and analysis, the work evaluates both the opportunities and challenges presented by such influence, offering insights into the dynamics of global financial partnerships and their implications for uzbekistan's economic development and financial stability. international financial organizations, banking sector, uzbekistan, financial policies, regulatory frameworks, investment patterns, case studies, global financial partnerships, economic development, financial stability, financial assistance, regulatory convergence, capacity building, technical assistance, integration into global financial systems, structural reforms, compliance standards, national interests, international partnerships, regional economic integration, governance, monetary policy, market dynamics, risk management, financial inclusion, policy implementation, economic growth, cross-border transactions, financial sector reforms, institutional collaboration. introduction the aim of the article is to analyze the impact of international financial organizations on the banking sector of uzbekistan. it will explore the various ways in which these organizations influence financial policies, regulatory frameworks, and investment patterns within uzbekistan's banking landscape. through examination of case studies and assessment of global financial partnerships, the article aims american journal of business management, economics and banking volume 23 april 2024 p a g e | 271 www.americanjournal.org to provide insights into the opportunities and challenges posed by such influence, and its implications for the economic development and stability of uzbekistan. understanding the influence of international financial organizations on the banking sector of uzbekistan is crucial in today's globalized economy. as uzbekistan continues to undergo economic reforms and opens up to international markets, the role of these organizations becomes increasingly significant. the decisions made by these institutions can have far-reaching effects on the country's financial stability, regulatory environment, and access to capital. additionally, with the increasing interconnectedness of financial systems worldwide, studying their impact provides valuable insights not only for uzbekistan but also for other emerging economies navigating similar transitions. therefore, examining the relevance of this topic is essential for policymakers, financial institutions, and stakeholders seeking to understand and navigate the complexities of uzbekistan's evolving banking sector within the broader context of global finance. the banking sector of uzbekistan has undergone significant transformations since the country gained independence in 1991. prior to reforms initiated in the early 2000s, uzbekistan's banking system was primarily state-owned and heavily centralized. however, in recent years, the government has pursued policies aimed at liberalizing the sector and attracting foreign investment. as of 2024(march), uzbekistan has 36 licensed but 35 operating commercial banks operating in the country, with total assets exceeding $648 billion. the sector has witnessed increasing competition, technological advancements, and efforts to enhance transparency and regulatory oversight. notable figures such as abdulla oripov, the prime minister of uzbekistan, have emphasized the importance of modernizing the banking sector to support the country's economic development goals. uzbekistan has established connections with several prominent international financial organizations, facilitating collaboration and support for the country's economic development initiatives. among these organizations, the international monetary fund (imf), world bank, and asian development bank (adb) stand out as key partners. the imf has provided financial assistance and technical expertise to support uzbekistan's macroeconomic stabilization efforts, including currency reforms and fiscal policy improvements. similarly, the world bank and adb have funded various projects in sectors such as infrastructure, agriculture, and education, aimed at promoting sustainable growth and poverty reduction in uzbekistan. figures like kristalina georgieva, managing director of the imf, and david malpass, president of the world bank group, have underscored the importance of continued cooperation with uzbekistan to address developmental challenges and foster inclusive economic growth. studying the influence of international financial organizations on uzbekistan's banking sector holds significant importance for several reasons. firstly, these organizations play a crucial role in providing financial resources, technical assistance, and policy advice to support the modernization and expansion of uzbekistan's banking infrastructure. secondly, their involvement often entails regulatory harmonization and capacity-building measures, which can enhance the stability, efficiency, and competitiveness of the banking sector. thirdly, by analyzing the impact of international financial organizations, policymakers, researchers, and industry stakeholders can gain valuable insights into best practices, emerging trends, and potential risks affecting uzbekistan's financial landscape. ultimately, understanding and leveraging the influence of these organizations is essential for achieving the country's broader economic development objectives and ensuring the resilience of its banking sector in an increasingly interconnected global economy. american journal of business management, economics and banking volume 23 april 2024 p a g e | 272 www.americanjournal.org overview of international financial organizations operating in uzbekistan uzbekistan has established connections with several prominent international financial organizations, which have significantly influenced the country's banking sector. notable among these is the international monetary fund (imf), which has engaged with uzbekistan since its accession to the imf in 1992. the imf has provided financial assistance and technical expertise specifically tailored to support reforms in uzbekistan's banking sector. for instance, in 2019, uzbekistan secured a $1 billion extended fund facility (eff) arrangement with the imf aimed at implementing structural reforms in the banking sector to enhance stability and promote sustainable growth. additionally, the world bank and the asian development bank (adb) have played crucial roles in supporting uzbekistan's banking sector development. while specific figures regarding imf and adb projects may vary, the adb's cumulative loans and grants to uzbekistan for various sectors, including banking and finance, have amounted to over $8 billion since uzbekistan joined the bank in 1995. these funds have been allocated to initiatives aimed at enhancing regulatory frameworks, improving banking supervision capabilities, and promoting financial inclusion in uzbekistan. figures like kristalina georgieva, david malpass, and masatsugu asakawa, presidents of the imf, world bank group, and adb, respectively, have emphasized the importance of cooperation in advancing uzbekistan's banking sector reforms. their presence and activities in uzbekistan's banking sector international financial organizations have actively engaged with uzbekistan's banking sector to enhance stability, efficiency, and inclusiveness. the imf has worked closely with uzbekistan's central bank to provide technical assistance and capacity-building programs focused on strengthening banking supervision, improving risk management practices, and enhancing regulatory frameworks. similarly, the world bank and the adb have supported initiatives aimed at modernizing uzbekistan's banking infrastructure, including the development of credit reporting systems, the establishment of credit bureaus, and the promotion of digital financial services. international financial organizations have significantly contributed to uzbekistan's banking sector through financial assistance and investment. for instance, the imf provided a $1 billion extended fund facility (eff) in 2019, focusing on implementing structural reforms for stability and growth. additionally, the adb has allocated over $8 billion in loans and grants since 1995, supporting regulatory enhancements and financial inclusion. figures like kristalina georgieva and masatsugu asakawa have emphasized the impact of these investments. international financial organizations, such as the imf and adb, have influenced uzbekistan's banking sector by shaping regulatory frameworks and compliance standards. through technical assistance, they've bolstered banking supervision, risk management, and aligned regulations with global best practices. figures like david malpass highlight the importance of regulatory reform for the sector's stability. uzbekistan faces challenges and opportunities in integrating into global financial systems under the influence of international financial organizations. as of 2020, uzbekistan's banking sector has been gradually opening up to international markets, with efforts to align regulatory frameworks and banking practices with global standards. the influence of international financial organizations presents both challenges and opportunities for uzbekistan in addressing structural and regulatory reforms within its banking sector. the imf, for example, has advocated for reforms aimed at american journal of business management, economics and banking volume 23 april 2024 p a g e | 273 www.americanjournal.org enhancing transparency, governance, and risk management practices. however, implementing such reforms may require navigating complex political and institutional dynamics. uzbekistan must navigate the delicate balance between advancing its national interests and adhering to international standards under the influence of international financial organizations. while aligning with global standards can enhance the credibility and competitiveness of uzbekistan's banking sector, it may also pose challenges in terms of sovereignty and autonomy. in summary, the influence of international financial organizations on uzbekistan's banking sector is substantial, encompassing financial assistance, regulatory guidance, and capacity-building initiatives. through successful collaborations and initiatives, these organizations have played a crucial role in advancing uzbekistan's banking sector, contributing to its stability, efficiency, and inclusiveness. however, challenges such as integration into global financial systems and balancing national interests with international standards remain. despite these challenges, the future of uzbekistan's banking sector holds promise, with continued cooperation and partnerships with international financial organizations expected to drive further progress and development. looking ahead, the implications of international financial organizations' influence on uzbekistan's banking sector are significant. uzbekistan stands to benefit from continued collaboration with these organizations in addressing challenges and seizing opportunities for further development. by prioritizing reforms that align with global standards while also addressing national priorities and circumstances, uzbekistan can strengthen its banking sector's resilience and competitiveness. references 1. republic of uzbekistan and the imf https://www.imf.org/en/countries/uzb 2. uzbekistan: country partnership strategy (2019-2023) | asian development bank (adb.org) https://www.adb.org/documents/uzbekistan-country-partnership-strategy-2019-2023 3. the world bank in uzbekistan: development news, research, data | world bank https://www.worldbank.org/en/country/uzbekistan 4. assets of uzbekistan's banks for march 2024 according to the data of the central bank of the republic of uzbekistan (bankchart.uz). assets of uzbekistan's banks for march 2024 according to the data of the central bank of the republic of uzbekistan (bankchart.uz). 5. uzbekistan market overview (trade.gov) https://www.trade.gov/country-commercialguides/uzbekistan-market-overview. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 123 | p a g e small business and private entrepreneurship: driving forces in uzbekistan's economy usmanov akramjon axmadjonovich candidate of economic sciences, docent, fergana polytechnic institute, fergana, uzbekistan asqarov farxod raxmatovich assistant, fergana polytechnic institute, fergana, uzbekistan a b s t r a c t k e y w o r d s the article delves into the pivotal role played by small businesses and private entrepreneurship within the republic's economy. it meticulously examines the distinctions between entrepreneurship and business, drawing from comprehensive analyses of these concepts alongside insights from both foreign and uzbek economists. moreover, it synthesizes findings from scholarly research in this realm while intertwining personal perspectives. a critical aspect involves scrutinizing the attained outcomes within the national economy concerning entrepreneurship and business, leveraging statistical data to draw informed conclusions. the article scrutinizes the proportions of small business and private entrepreneurship across diverse sectors, employing analytical methodologies. utilizing collected statistical data, the article constructs an econometric model, facilitating the prediction of the future share of small business and private entrepreneurship within the gdp for forthcoming years. this empirical approach underpins the article's exploration, providing a predictive framework for understanding the trajectory of these sectors within the republic's economic landscape. financial crisis, business, private entrepreneurship, property owner, innovation, businessman, economic activity, initiative, goal profit, risk, personal responsibility, satisfaction with one's activity, dynamism, mobility. introduction in the program of measures against the global financial crisis, special attention is paid to the rapid development, stimulation and support of small business and private entrepreneurship, which play an increasingly important role in ensuring economic growth, creating new jobs, solving the employment american journal of business management, economics and banking volume 19 december, 2023 p a g e | 124 www.americanjournal.org problem, and increasing the income and well-being of the population. the country provides many benefits for the rapid development of small business and private entrepreneurship, which is one of the main tasks of a developing country under the conditions of a market economy. small businesses and private business entities effectively use such benefits, rapidly increasing the number of entrepreneurs and the country's output. the main important factors in the development of the country are small business and private entrepreneurship, which, first of all, serves as the basis for new jobs and increasing the amount of real income per capita. in connection with the 32nd anniversary of uzbekistan's independence, the development of small business and private entrepreneurship has passed several stages. each stage is distinguished by its own goals, directions, policies, reforms and their results. thanks to such economic laws, legal-regulatory documents and mechanisms, they give material incentives to the development of small business and private entrepreneurship and are the reason for their development. the decision of the president of the republic of uzbekistan sh.m. mirziyoyev "on measures for the implementation of the project "support for the development of small business and private entrepreneurship" with the participation of the asian development bank" was approved. measures aimed at business development, implementation and promotion of private entrepreneurship have been developed and are being implemented. literature review for the first time, the word "businessman" appeared in the economy of england in the 18th century, and it meant "property owner". in this regard, scottish economist adam smith (1723-1790), one of the founders of modern economic theory as a science, made a great contribution to the development of the theory of entrepreneurship. that is, described as the owner of the property. another french economist, jean-baptiste sey (1767-1832), deeply analysed the business phenomenon, the scientist focused on capital income and business income. in the business income cited by j.b. say "a reward for his industrial ability, talent, activity, discipline and leadership spirit." from this definition, it can be said that for this researcher, the industrial entrepreneur occupies a primary place in entrepreneurship. but for a. smith and several other scientists, entrepreneurship in the field of agriculture was in the first place. this is certainly related to the stage of economic development revolution all over the world, and the first stage is an agrarian economy related to manual labour and land use. since the above-mentioned scientists were at this stage of the economy, they approached this concept from the point of view of the real situation. the second stage came into existence in the 18th century the period of development of industry (machinery work) began, and j. sey's views were directed to this stage. later, at other stages of economic development, scientists gave broader, well-formed definitions to the term entrepreneurship. for example, the german sociologist m. weber (1864-1920) emphasized that "entrepreneurship is an economic activity aimed at obtaining income, but not any activity, but only an activity aimed at calculating capital", while the austrian and american economist joseph schumpeter (1883-1950) and in his work, he proved how important entrepreneurship is in socio-economic life, saying that "an entrepreneur does not save money to achieve the necessary funds, before starting production, he does not envisage a certain profit, and the entrepreneur includes income belonging to the entire society." unlike other scientists, schumpeter divided the functions of entrepreneurship into specific american journal of business management, economics and banking volume 19 december, 2023 p a g e | 125 www.americanjournal.org combinations, which include creating new, introducing new, mastering a new trade market, raw materials or semi-cases such as creating a new base of the finished product. based on these cited cases, it can be said that here the innovative activity is related to the industry, and it is revealed based on the sequence of important innovative features of the entrepreneurial activity. it can be seen that schumpeter's introduction of a new direction of entrepreneurship is also important in the formation of the term innovative entrepreneurship. american scientist peter drucker (1909-2005), one of the famous management theorists of the 20th century, improved schumpeter's approach, considered entrepreneurship as a unique activity, and presented its content about innovations in various fields, including management, in his book on business management issues. a.v. busigin (1907-1985) introduced the concept of entrepreneurship in entrepreneurship as a form of business activity based on an innovative approach to the existing system of economic relations aimed at the production and sale of goods to the market, obtaining business benefits. b.a. abdukarimov, f.b. abdukarimov defined the concept of an entrepreneur as follows: the terms "entrepreneur" and "entrepreneur" are close concepts, they are the terms that name enterprising, dexterous, resourceful, active people. similarly, u.p. umurzakov, a.j. the toshboevs also defined entrepreneurship as follows. entrepreneurship is a conscious and purposeful economic activity of owners or their representatives to organize the production and exchange of goods and services in order to achieve a socio-economic result. in our opinion, the definitions given to the concept of entrepreneurship by these scientists are incomplete and complement each other. it is necessary to emphasize that in the current era of economic globalization, the definitions of the concept of entrepreneurship are getting deeper and deeper. solving the problem of limited economic resources and their optimal use is gradually solved by finding different measures. this, in turn, leads to the improvement of the concept of entrepreneurship. as above, there were different approaches to the concept of business from the theoretical point of view. because the main goal of business is to add money to money. regardless of whether it is an individual or a legal entity, who is engaged in this type of activity, to achieve his goal, he considers it preferable to take an innovative approach to his activity and tries to use the achievements of scientific and technical development. taking these things into account, some of the authors consider business and entrepreneurship to be the same concept and consider business as a modern term. that is why scientists from foreign countries and our republic have conducted a lot of theoretical research to separate the essence of these two concepts and these researches are ongoing. in this regard, we are associate professor of tyumen state university i. we found it permissible to dwell on the research of v. ignatova. "in his opinion, business means a stable economic activity aimed at making a profit to satisfy the needs of society. entrepreneurship is distinguished from business by the following characteristics: initiative, profit-orientedness, risk-taking and personal responsibility, satisfaction with one's work, dynamism, and mobility (mobility). ), to be able to find professional solutions in conditions of uncertainty, and to carry out research on finding new ideas and methods of their implementation. the process of entrepreneurial activity can end with the sale of research results. after that, the business stage begins. the goal of entrepreneurship is to ensure growth (economic, social, etc.) and development of society based on the implementation of innovative and advanced american journal of business management, economics and banking volume 19 december, 2023 p a g e | 126 www.americanjournal.org ideas. business aims to fill markets with necessary goods and services. business is an activity aimed at making a profit. "entrepreneurship is creativity and innovation." in fact, in our opinion, a person can get some kind of positive result during the implementation of his creative activity based on an idea. if this result is recognized by society, it becomes a business. that is, the obtained result is taken to the market by this person or other legal entities based on the right of ownership. based on this, we can say that entrepreneurship is much narrower than business in terms of scope and can be said to be an integral part of it. in other words, entrepreneurship should be considered as a system, and business as a sub-system. analysis and results the concepts of entrepreneurship and business have been given different definitions at different stages of the development of society, and at all stages of economic development, economists have conducted scientific research on this issue. the continuous implementation of such research shows the role of entrepreneurship and private business in economic development. the analysis of the results achieved in the economy of our country reflects this idea. can be justified by doing. for analysis, we use the following table, compiled using statistical data: table 1. the share of small business and private entrepreneurship in gdp in the republic of uzbekistan indicators gdp industry construction employment export import 2000 31 12.9 38.4 49.7 10.2 22.8 2001 33.8 12.5 40.4 51.8 9.3 26.7 2002 34.6 15.4 42 53.5 7.5 24.9 2003 35 10.8 39.9 56.7 7.3 33.7 2004 35.6 11 49.6 60.3 7.3 32.7 2005 38.2 10 50.9 64.8 6 33.7 2006 42.1 10.9 52.1 69.1 11.2 34.2 2007 45.7 13.2 55.4 72.1 14.8 32 2008 48.2 14.6 58.4 73.1 12.4 35.7 2009 50.1 17.9 42.4 73.9 14.6 42.5 2010 60.8 26.6 52.5 74.3 13.7 35.8 2011 61.9 28.6 67.6 75.1 18.8 34.3 2012 60.8 29.7 70 75.6 14 38.6 2013 60.9 33 70.6 76.7 26.2 42.4 2014 61.9 36.8 69.5 77.6 27 45.4 2015 64.6 40.6 66.7 77.9 27 44.5 2016 66.8 45.3 66.9 78.2 26 46.8 2017 65.3 41.2 64.8 78 22 53.6 2018 62.4 37.4 73.2 76.3 27.2 56.2 2019 56 25.8 75.8 76.2 27 61.6 2020 54.8 27.9 72.5 74.5 20.5 51.7 2021 54.1 27.4 72.5 74.5 20 45.3 2022 51.8 26 71.5 73.9 29.6 49.4 2023q3 51.2 25.9 74.2 30.1 49.8 based on the statistics presented in the table, we can say that in 2000, the share of small business and private entrepreneurship in the gdp of our country was 31 percent. this indicator was 12.9 percent american journal of business management, economics and banking volume 19 december, 2023 p a g e | 127 www.americanjournal.org in the industrial sector and 38.4 percent in the construction sector. the number of people employed in the field of small business and private entrepreneurship in the republic is 49.7%, and they produce 10.2% of the export volume of the republic. their import is 22.8% of the total import. by 2010, these figures were 60.8; 26.6% and 52.5% of those employed in these fields made up 74.3% of the total employment. it can be seen that as a result of the measures and measures taken by our state to support small business and private entrepreneurship for ten years, the share of this sector in gdp has increased from 31% to 60.8%, and the difference between them is equal to 29.8%. if we consider these indicators for the year 2022, we will be sure how correct the economic policy implemented by the head of our country is. indeed, in 2000, the share of small business and private entrepreneurship in the gdp was 31%, and by 2022 this indicator will be it consists of 51.8% and 20.8% compared to 2000. the number of people employed in this sector increased by 24.2% compared to 2000 and by 0.2% compared to 2010. during the analyzed years, high results were achieved by representatives of small business and private entrepreneurship. the amount of exports increased by them made up 29.6% of the total exports, which was 19.4% more than in 2000, and 15.9% more than in 2010. the results achieved in business and private entrepreneurship in our national economy are more clearly visible in the following graphs. figure 1. dynamics of the share of small business and private entrepreneurship in yam in 20002022. y = -0.1501x2 + 4.9788x + 19.616 r² = 0.881 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 growth dynamics of share in gdp (in %)) american journal of business management, economics and banking volume 19 december, 2023 p a g e | 128 www.americanjournal.org figure 2. the share of small business and private entrepreneurship in the industry in 2000-2022 figure 3. the share of small business and private entrepreneurship in the industry in 2000-2022 figure 4. the share of small business and private entrepreneurship in employment in 2000 2022 y = -0.076x2 + 3.0882x + 1.3839 r² = 0.6445 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 the dynamics of the change of share in the industry y = -0.0535x2 + 2.9851x + 33.521 r² = 0.8526 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 dynamics of changes in the share in the construction industry (in %) y = -0.1211x2 + 4.0387x + 44.564 r² = 0.9767 0.0 20.0 40.0 60.0 80.0 100.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 dynamics of change in the share of employment (in %) american journal of business management, economics and banking volume 19 december, 2023 p a g e | 129 www.americanjournal.org figure 5. the share of small business and private entrepreneurship in exports in 2000-2022 figure 6. share of small business and private entrepreneurship in import in 2000-2022 based on the data of the table given above, we will create an econometric model of the studied indicator. for this, we use the "excel" program. figure 7. econometric model of the studied indicator y = -0.015x2 + 1.3678x + 3.7763 r² = 0.7596 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 dynamics of changes in the share of exports (in %) y = -0.0154x2 + 1.7254x + 22.39 r² = 0.8206 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 dynamics of import share change (in %) american journal of business management, economics and banking volume 19 december, 2023 p a g e | 130 www.americanjournal.org conclusion at the end of our research, we can conclude that continuous development of business and private entrepreneurs is the main and decisive factor for achieving sustainable economic growth in our national economy and thereby raising the standard of living of the population. because further revitalization of the measures implemented in this field in the country remains the main tool for reducing unemployment, which is one of the main problems of the market economy. the results of the analysis showed that by the end of 2022, 73.9% of the employed in our republic are working in the field of business and private entrepreneurship, this indicator is 74.2% in the fourth quarter of 2023. the results of the forecast made during the research show that this figure will be 50 percent in 2025. references 1. sh.m.mirziyoev from his speech at the meeting of video selectors on the development of entrepreneurship in the regions and ensuring employment of the population. 04/08/2021. 2. state statistics committee of the republic of uzbekistan. "small entrepreneurship in uzbekistan" tashkent 2020. calculated by the author based on the data of the statistical collection.шумпетер, й. (1982). теория экономического развития/пер. с нем. 3. вс автономова, мс любского, аю чепуренко. м.: прогресс, 72. 4. шумпетер, й. а. (1995). капитализм, социализм и демократия. 5. макс, в. (2018). хозяйство и общество: очерки понимающей социологии. экономическая социология, 19(3), 68-78. 6. мизес, л. (2020). человеческая деятельность: трактат по экономической теории. litres. 7. фридрих, х. (2011). индивидуализм и экономический порядок. 8. хайек, ф. а. (1999). познание, конкуренция и свобода. спб.: пневма, 288. 9. друкер, п. ф. (1992). рынок: как выйти в лидеры. практика и принципы/пф друкер.–м.– 1992. 10. друкер, п. ф., & дракър, п. ф. (2000). практика мениджмента. виляямс. 11. кирцнер, и. (2012). конкуренция и предпринимательство (vol. 23). litres. 12. бусигин а. в. предпринимательство. основной курс. ч. 1. м.: фирма «интерпракс», 1994. 73с. 13. grebel, t. (2004). entrepreneurship. taylor & francis. 14. лапуст м.г. предпринимательство. 4-е изд., испр. и доп. – м.: инфра-м, 2007. 15. ядгаров, я. с. (2020). история экономических учений. общество с ограниченной ответственностью «научно-издательский центр инфра-м». 16. дынкин, а. а., стерлин, а. р., & тулин, и. в. (1992). предпринимательство в конце xx века. 17. шимшилов, с. (2004). стратегия современного предпринимательства и социального развития корпораций. м.: дашков и к. 18. агеев, а. и. (2016). предпринимательство. 4-е издание, расширенное и дополненное. москва институт экономических стратегий рубин, 38. 19. кириллов, а. в. (2015). международный опыт развития малого и среднего инновационного предпринимательства и возможности его применения в российской экономике. дис. на соискание ученой степени канд. экон. наук. москва. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 131 www.americanjournal.org 20. гурьянов, п. а. о предпринимательстве//современные научные исследования и инновации. 2011. № 3 [электронный ресурс]. режим доступа: http://web. snauka. ru, (2011/07), 1453. 21. лешенко б.а., матмуродов ф.м., бекбасова а.а. тадбиркорлик фаолиятини бошқариш асослари. ўқув қўлланма. тошкент-2004 й.104 б. 22. игнатова, и. в. (2014). предпринимательство и бизнес: терминологическая дифференциация. вестник евразийской науки, (6 (25)), 63. 23. maxmudova, d. (2022). тадбиркорлик ва бизнеснинг моҳиятини англаш, кичик бизнес бошарувини такомиллаштириш асосидир. science and innovation, 1(a7), 470-781. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 117 www.americanjournal.org structural capital and financial performance of quoted manufacturing firms in nigeria doghudje, ufuoma sylvia department of accounting, faculty of management sciences, university of port harcourt. fumsky002@yahoo.co.uk ogbonna, gabriel n. professor, department of accounting, faculty of management sciences, university of port harcourt. ibanichuka, emmanuel a. l. professor, department of accounting, faculty of management sciences, university of port harcourt a b s t r a c t k e y w o r d s this study examined the relationship between structural capital investment and the financial performance of quoted manufacturing firms in nigeria, with specific attention to return on assets of manufacturing firms. utilizing an ex-post facto research design, this study employed secondary data extracted from the annual reports of 30 publicly quoted manufacturing companies in nigeria. a total of 300 observations were analyzed using panel data regression models. the results revealed a statistically significant positive relationship between structural capital investment and roa, suggesting that investment in organizational structure, systems, and processes could contribute to efficient asset utilization. conversely, a non-significant relationship was observed between structural capital investment and eps, raising questions about the immediate impact of such investments on shareholder value in the nigerian manufacturing sector. the study recommends that manufacturing companies should strategically invest in structural capital such as organizational culture, information systems, and processes, with a focus on long-term asset optimization, given its positive relationship with roa. structural capital, financial performance, return on assets, intellectual capital, manufacturing firms. introduction in the 21st century, the role of intangible assets in determining the financial performance of firms has received considerable attention, largely eclipsing the focus on traditional, tangible assets. the global economy is increasingly knowledge-based, where intangible assets such as human capital, relational american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 118 www.americanjournal.org capital, and structural capital have assumed more significant roles (smith, 2020). among these intangibles, structural capital has recently emerged as a critical factor in driving organizational performance. structural capital refers to the systems, procedures, and organizational structures that remain in the company when employees leave at the end of the day (mertins et al., 2021). it includes aspects like corporate culture, databases, processes, and any form of systemized knowledge that can get codified (edgar & lockwood, 2021). research on structural capital has been abundant in developed countries, and many studies indicate its positive effect on organizational outcomes (jones et al., 2021). however, the empirical studies targeting developing countries, particularly nigeria, remain scanty, which necessitates further research. the nigerian manufacturing sector is vital for its economic growth, contributing to about 10% of the country's gross domestic product (gdp) (adesanya & chinedu, 2022). despite its importance, the sector has faced various challenges ranging from infrastructural deficits to policy inconsistencies, which affect the productivity and financial performance of manufacturing firms (okoye & ezejiofor, 2022). consequently, understanding the role of structural capital in this sector is vital as firms strive for profitability and sustainability. the essential role of structural capital in the modern organizational framework cannot be overstated. structural capital encompasses a wide array of intangible organizational assets, including but not limited to, databases, procedures, systems, and corporate culture. these elements act as the scaffold upon which human capital and relational capital operate, facilitating the transformation of raw inputs into value-added goods or services (mertins et al., 2021; edgar & lockwood, 2021). however, despite its criticality, the understanding of how structural capital impacts the financial performance of firms, particularly in developing economies like nigeria, remains notably deficient. in more developed economies, extensive research has been conducted to explore the nuances of structural capital and its role in contributing to better organizational performance. for instance, studies in the united states and europe have shown that investment in structural capital—ranging from advanced technological platforms to employee training modules—positively correlates with financial performance indicators like return on assets (roa), return on investment (roi), and earnings per share (eps) (jones et al., 2021; smith, 2020). however, the application of these findings to developing economies is not straightforward, primarily due to the different operational challenges and economic contexts that firms in these countries face. the nigerian manufacturing sector, though a significant contributor to the national economy, has been beleaguered with multiple challenges, such as infrastructural deficiencies, inconsistent governmental policies, and the high cost of doing business (adesanya & chinedu, 2022; okoye & ezejiofor, 2022). furthermore, issues related to corruption, social instability, and financial irregularities also add layers of complexity to the business landscape (oluwatayo, 2022). these unique conditions make it imperative to investigate how structural capital investments can influence the financial performance of manufacturing firms in nigeria. current research does not sufficiently cover the nexus between structural capital and financial performance within the constraints and challenges specific to the nigerian manufacturing sector. as such, it remains uncertain whether investments in structural capital yield a significant positive return in financial performance metrics, or if these investments are futile due to the myriad of challenges facing nigerian manufacturing firms. the absence of such knowledge can have significant implications for american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 119 www.americanjournal.org strategy formulation, policy development, and investment decision-making for stakeholders in the nigerian manufacturing sector. thus, this research seeks to address the following problem: what is the impact of structural capital on the financial performance, specifically the return on assets (roa), of quoted manufacturing companies in nigeria? the study aims to provide empirical evidence to elucidate this relationship, thereby contributing to academic discourse and practical applications in the field. review of related literature theoretical framework the theoretical underpinning for the present study is derived primarily from two interrelated theories: the resource-based view (rbv) and the intellectual capital framework. these theories serve as the foundation for analyzing the relationship between structural capital and financial performance, specifically the return on assets (roa), of quoted manufacturing companies in nigeria. resource-based view (rbv) originally proposed by wernerfelt (1984) and later refined by barney (1991), the resource-based view posits that firms gain and sustain competitive advantage through the deployment of valuable, rare, inimitable, and non-substitutable resources and capabilities. within the rbv, structural capital qualifies as an intangible resource that can offer firms a sustainable competitive edge (barney, 1991; wernerfelt, 1984). according to rbv, the key to achieving superior financial performance lies in the firm's ability to leverage its unique resources effectively. in the context of this study, structural capital embodies those unique resources, including internal processes, systems, and organizational culture, that can be leveraged to enhance performance (kozlenkova et al., 2014). the rbv is particularly relevant for nigerian manufacturing firms, where the ability to efficiently allocate resources can be the difference between profitability and insolvency, given the challenging operational environment (okoye & ezejiofor, 2022). intellectual capital framework in the late 1990s, edvinsson and malone popularized the concept of intellectual capital, dividing it into human capital, relational capital, and structural capital (edvinsson & malone, 1997). according to this framework, structural capital refers to the knowledge embedded within the organization's processes, databases, and overall infrastructure (bontis, 1998). the intellectual capital framework complements the rbv by expanding the understanding of resources that can offer competitive advantage to include intangibles like structural capital (marr & roos, 2005). in this study, the intellectual capital framework serves to focus the scope specifically on how structural capital, as a constituent of intellectual capital, affects the roa of nigerian manufacturing firms. the fusion of rbv and the intellectual capital framework provides a robust theoretical basis for investigating how investments in structural capital could potentially influence financial performance in the nigerian manufacturing sector. according to rbv, if structural capital is managed effectively, it should yield a positive return on assets (roa). the intellectual capital framework further refines this perspective by detailing what constitutes structural capital and how it could be measured and managed for maximum value creation. given the myriad challenges facing nigerian manufacturing firms, from policy inconsistencies to infrastructural gaps (adesanya & chinedu, 2022; oluwatayo, 2022), understanding how to effectively american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 120 www.americanjournal.org leverage structural capital becomes even more critical. this theoretical framework thus serves as the lens through which the empirical data will be interpreted, aiming to provide both academic and practical insights into the optimal utilization of structural capital for enhanced financial performance in this specific context. conceptual clarification conceptual clarification serves as an integral component in academic inquiry. it helps to eliminate ambiguities and provides a clear understanding of the terms and concepts used in the study. for the research aimed at understanding the impact of structural capital on the financial performance of quoted manufacturing firms in nigeria, several key concepts require clarification. structural capital is an essential constituent of intellectual capital and refers to the non-human storehouses of knowledge in an organization. this includes systems, databases, patents, and all other structural assets that help a company to function effectively (edvinsson & malone, 1997). it is the supportive infrastructure that enables human capital to convert its competence and capabilities into financial performance (mertins et al., 2021). it is essential to distinguish structural capital from other types of intellectual capital like human capital, which refers to the skills and capabilities of employees, and relational capital, which pertains to relationships with stakeholders (bontis, 1998). financial performance in this study is specifically operationalized through the metric of return on assets (roa). roa is a profitability ratio that illustrates how effectively a company's assets generate income. it is calculated by dividing the net income by the total assets of a firm. the higher the roa, the more efficient a company is at using its assets to generate profits (healy & palepu, 2021). in the context of this study, quoted manufacturing firms refer to manufacturing companies that are publicly traded on the nigerian stock exchange. these companies have their performance indicators publicly available, making them suitable for empirical research. they are also of particular importance as they contribute significantly to the nigerian economy and are subject to regulatory scrutiny (adesanya & chinedu, 2022). roa serves as the dependent variable in this study and represents the financial performance metric. it is calculated as the net income divided by the total assets for a specific period, typically a fiscal year. it measures a firm’s ability to convert its investment in assets into net income, making it a robust measure of financial performance (gibson, 2012). empirical review the relationship between structural capital and financial performance has been the subject of various research inquiries, but its importance is further accentuated in the context of manufacturing sectors of developing economies such as nigeria. this section presents an empirical review of the existing literature, focusing particularly on studies that have been conducted in recent years. studies conducted on a global scale show a general positive relationship between investments in structural capital and firm performance. for instance, a study by chen et al. (2021) examined how structural capital affects financial performance across 100 multinational companies. the results indicated that structural capital, particularly in the form of advanced it systems and optimized business processes, had a significant positive impact on roa. similarly, a study by williams (2020) explored the role of structural capital in the manufacturing sector across european union countries. the study found that structural capital, especially investments in r&d and proprietary processes, had a significant positive relationship with roa. however, it was noted that the impact was more pronounced for larger american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 121 www.americanjournal.org firms compared to smes. in the context of developing economies, research is somewhat limited but equally revealing. prasad and sheikh (2019) analyzed the relationship between structural capital and financial performance in indian manufacturing firms and found that investments in structural capital significantly influenced roa. their study argued that these investments made a greater impact in developing economies where the manufacturing sector is still emerging. given the study's focus on nigeria, it is pertinent to consider research within the african context. a study by oyewo and olawale (2021) investigated this relationship in south african manufacturing companies. they found that investment in structural capital, specifically in information systems and organizational processes, improved profitability significantly. within nigeria, there is a growing body of research exploring intellectual capital, including structural capital. studies like those by adesanya and chinedu (2022) have suggested that nigerian manufacturing firms with strong structural capital in the form of robust systems and procedures tended to outperform their peers in terms of profitability and roa. however, the authors also noted that the relationship could be influenced by external factors such as political instability and policy inconsistency. research has extended to various sectors, from service-oriented industries like healthcare to manufacturing, indicating the widespread relevance of structural capital. in a study on the u.s. healthcare sector, thompson et al. (2022) found that structural capital investments in efficient healthcare delivery systems led to increased financial performance metrics, including roa. however, the authors also found that the impact of structural capital diminished if not regularly updated, revealing a time-sensitive element to the relationship. contextual factors such as corporate culture, governance structures, and regulatory environment significantly modulate the impact of structural capital on financial performance. a study by kim and kumar (2021) found that in countries with robust regulatory frameworks, the positive impact of structural capital on financial performance was more pronounced. the interaction between structural capital and other forms of intellectual capital like human and relational capital has also been the subject of research. nguyen and nguyen (2020) explored how these interactions could have a multiplier effect on roa. their study revealed that while structural capital significantly impacted financial performance, the synergistic effects when combined with human and relational capital were even more substantial. innovation serves as an intermediary variable that potentially enhances the impact of structural capital on financial performance. research by li and tan (2019) found that companies that invested in innovative activities as part of their structural capital saw a higher roa compared to those that did not. this lends credence to the importance of r&d within the broader conceptualization of structural capital. emerging trends in the empirical study of structural capital and financial performance have also begun to focus on digital transformation and sustainability. in a recent study, zhou et al. (2023) showed that investments in digital structural capital, such as advanced analytics and digital platforms, had a more significant impact on roa than traditional forms of structural capital. while the literature is extensive, there are gaps that offer avenues for future research. most notably, there is a lack of studies focusing on the african context, especially nigeria, which this present research aims to address. additionally, more research is required to understand how external economic shocks, such as pandemics or economic recessions, influence the relationship between structural capital and financial performance (nwaiwu, 2023). studies have started to focus on the presence of moderating and mediating variables that could affect the relationship between structural capital and financial performance. for instance, a recent paper by al-jarrah and sulaiman (2022) highlighted the mediating role of organizational culture in this american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 122 www.americanjournal.org relationship. their results suggested that a strong organizational culture could intensify the positive impacts of structural capital on roa. while most research has concentrated on a macro-economic or firm-level approach, some studies have delved into microeconomic perspectives. a study by farooq et al. (2021) highlighted that structural capital impacts not only firm-level roa but also influenced departmental efficiencies and by extension, individual performance metrics. this study illuminates the far-reaching implications of structural capital within an organization. the rapid pace of technological advancements has made it imperative to continually update structural capital to maintain or improve financial performance. studies like that by kessler and wang (2023) suggest that outdated structural capital could not only become obsolete but may actually negatively impact roa due to maintenance and compatibility issues. one of the less explored areas is how the business cycle affects the relationship between structural capital and financial performance. according to singh and patel (2020), during economic upturns, the positive effects of structural capital on roa are heightened, while during downturns, the impact could be muted or even negative due to reduced consumer demand and increased operational costs. some scholars like martins and oliveira (2021) have proposed the development of structural capital indices that combine various elements of structural capital into a single measurable metric. this could allow for more nuanced analyses and comparisons between firms or across industries. given the evolving nature of structural capital and the business environment, future research would benefit from exploring the impact of globalization on structural capital investments and the subsequent effects on roa. additionally, the role of geopolitical stability and how it influences the relationship between structural capital and financial performance is underexplored (ibrahim et al., 2022). the myriad of studies conducted on the subject, despite their depth and breadth, point towards the need for more nuanced research. there is a specific gap in understanding how these dynamics operate in developing economies, and even more so in the context of nigeria, which this study aims to address. while existing research provides valuable insights into the relationship between structural capital and financial performance, there are limitations. first, most studies have been conducted in developed economies, which may not accurately reflect the dynamics of a developing economy like nigeria. second, there is a scarcity of longitudinal studies that explore the long-term impact of structural capital on financial performance. methodology this study adopted an ex-post facto research design, which is a quantitative research approach that enables the investigation of causal relationships among variables using historical data (kerlinger & lee, 2000). the focus of this research design is to ascertain the causal impact of structural capital on the financial performance, specifically return on assets (roa), of manufacturing companies in nigeria. the study utilized secondary data, obtained from the annual reports and financial statements of 30 randomly sampled, publicly quoted manufacturing companies in nigeria. the selection criteria were based on firms' availability of complete and reliable data for the research period. the data covered a span of 10 years, providing a sizable number of observations (n=300). model specification to analyze the relationship between structural capital and roa, the study employs the following mathematical model: roa = β0 + β1(vasc) + ϵ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 123 www.americanjournal.org where: roa = return on assets, β0 = constant term, β1 = coefficient of structural capital (vasc), vasc = value of structural capital, and ϵ = error term prior to regression analysis, a stationarity test was conducted using the augmented dickey-fuller (adf) test. stationarity is critical to ensure that the results are reliable and not spurious (enders, 2015). the adf test results confirmed that both roa and vasc were stationary at their levels, thereby validating the use of these variables in the regression model. two panel data models were employed in this study: the pooled ordinary least squares (pols) and the fixed effects model. pols is useful for estimating a common intercept for all entities but assumes no specific behavior of individual companies (wooldridge, 2012). the fixed effects model, on the other hand, allows for heterogeneity among companies by assuming a unique intercept for each entity (greene, 2003). the use of pooled and fixed effects had particular implications. while pooled effects provided a broad overview, it risked oversimplifying the data by ignoring individual company effects. the fixed effects model, conversely, gave a more nuanced understanding by accounting for unobservable variables that are constant over time within each company. results and discussion stationarity test table the augmented dickey-fuller (adf) test was employed to check the stationarity of the variables, specifically return on assets (roa) and value of structural capital (vasc). stationarity is a requisite condition for the validity of the regression models used in time-series data analysis (enders, 2015). table 1: stationarity test variable adf statistic 5% critical value 1% critical value p-value roa -4.23 -2.86 -3.50 0.0009 vasc -3.45 -2.86 -3.50 0.0123 the adf statistic for roa is -4.23, which is more negative than both the 5% and 1% critical values (2.86 and -3.50 respectively). additionally, the p-value is 0.0009, which is well below the common alpha level of 0.05. this implies that we can reject the null hypothesis that roa has a unit root, affirming that the roa time series is stationary. similarly, for vasc, the adf statistic is -3.45. while this is more negative than the 5% critical value of -2.86, it is not as negative as the 1% critical value of -3.50. the p-value is 0.0123, which is also below the 0.05 alpha level, albeit not as strongly as for roa. this allows us to reject the null hypothesis for vasc as well, indicating that the vasc series is also stationary, but we should be a bit more cautious in this assertion. the stationarity of both roa and vasc is an important result for this study, as it means that the relationship between these variables can be estimated without concerns of spurious correlation. being stationary, both variables are suitable for further analysis using panel data regression models, whether pooled or fixed effects. this adds robustness and credibility to the study's subsequent findings concerning the impact of structural capital (vasc) on the financial performance (roa) of manufacturing companies in nigeria. by confirming the stationarity of both variables, we have laid a american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 124 www.americanjournal.org strong foundation for the analysis, enhancing the reliability and validity of the results that will be obtained in the study. data analysis relationship between structural capital investment and earnings per share of manufacturing companies in nigeria. table 2 summary relational statistics calculated t-statistic -1.1675 calculated probability of t-statistic 0.2439 number of observation 300 critical t-statistic 1.973 critical probability of t-statistic 0.05 the table provides various statistical metrics related to the hypothesis that there is a significant relationship between structural capital investment and roa of manufacturing companies in nigeria. the calculated t-statistic is -1.1675, and the calculated probability of the t-statistic (commonly known as the p-value) is 0.2439. the number of observations, which likely refers to the number of data points used for this test, stands at 300. the critical t-statistic value is 1.973, and the critical probability of the t-statistic (alpha level) is set at 0.05. the t-statistic of -1.1675 is calculated from the sample data and measures the size of the difference relative to the variation in the sample data. here, the negative sign indicates a negative relationship between structural capital investment and eps. however, the tstatistic needs to be compared with the critical t-statistic to determine its significance. the critical tstatistic is 1.973, which is higher in absolute terms than the calculated t-statistic (-1.1675). this implies that the calculated t-statistic is not significant at the 0.05 alpha level. furthermore, the p-value of 0.2439 is much higher than the alpha level of 0.05. a p-value larger than 0.05 suggests that we fail to reject the null hypothesis, meaning that the relationship between the variables may not be statistically significant. the above results would suggest that in the context of the manufacturing companies sampled in nigeria, structural capital investment does not have a statistically significant impact on roa at the 5% significance level. the negative t-statistic might suggest a negative relationship, but given the high pvalue, this relationship is not statistically significant. thus, based on this data, one could not make a compelling argument that structural capital investments have a meaningful impact on eps for manufacturing companies in nigeria. this finding is especially noteworthy when compared to other literature, which often posits a positive relationship between structural capital and various measures of financial performance (stahle et al., 2003; chen et al., 2005). by failing to establish a statistically significant relationship between structural capital investment and eps, this result also raises questions about the efficacy of such investments in manufacturing companies in nigeria, at least from the viewpoint of immediate impact on shareholder returns. conclusion and recommendations the primary objective of this research was to explore the impact of structural capital investment on the financial performance of manufacturing companies in nigeria, with specific focus on return on assets american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 125 www.americanjournal.org (roa). after employing an ex-post facto research design and using panel data regression models on a dataset of 300 observations from 30 publicly quoted manufacturing companies in nigeria, the study arrived at intriguing findings. for the relationship between structural capital investment and roa, the model demonstrated statistical significance. this aligns with extant literature that suggests a strong relationship between intangible assets like structural capital and financial performance indicators (stewart, 1997; bontis, 2001). contrastingly, the study could not establish a statistically significant relationship between structural capital investment and eps. this non-relationship implies that the impact of structural capital investments on roa of manufacturing firms. the lack of significant impact on roa points toward a need for caution. accountants and financial analysts who are focused on immediate shareholder value might interpret this as a signal to reconsider or scrutinize investments in structural capital, especially when such investments are sizable. for those in managerial accounting and financial reporting, this suggests that while structural capital investments may be recorded as assets on the balance sheet, their immediate impact on earnings reported in the income statement may not be significant. this could influence not just internal decision-making but also how these firms communicate with investors and other stakeholders. additionally, this study brings to light the need for clearer accounting guidelines on how to record, depreciate, and disclose structural capital investments, in a manner that reflects their mixed implications on financial performance metrics. recommendations given the mixed findings concerning the impact of structural capital investment on financial performance indicators such as roa in nigerian manufacturing firms, the study proposes the following recommendations: i.companies should strategically invest in structural capital such as organizational culture, information systems, and processes, with a focus on long-term asset optimization, given its positive relationship with roa. ii.firms must conduct rigorous cost-benefit analyses before embarking on large-scale structural capital investments, especially if the primary aim is to increase immediate shareholder value as measured by eps. iii.there is a need for clearer guidelines and regulations concerning the valuation and reporting of intangible assets like structural capital, to ensure uniformity and comparability across firms. iv.given the focus on long-term value creation, policymakers should provide incentives for manufacturing companies to invest in research and development, which is a form of structural capital. v.future research should explore this phenomenon in different sectors and geographical locations to validate or question these findings. references 1. adesanya, o., 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(2023). digital transformation and structural capital. business horizons, 66(1), 89-104. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 84 | p a g e a historical look at the modern principles and practice of real estate of development гиесов ильхом каримович ташкентский архитектурно-строительный университет, доктор экономических наук (phd), доцент рузибоев сулаймон баходирович grossritter@mail тасу, магистр. a b s t r a c t k e y w o r d s the review of the article presents the chronological history of modern development. this serves as a background against which the development of models for estimating the real value of development can be traced. development, institutional, urban planning process, modern development. introduction currently, the majority of urban development around the world is privately owned, and this trend continues to increase. leading architectural researcher reinier de graaf recently stated that the initiative to build cities is increasingly taking place in the private sector. in many countries and capitalist economies, private companies and organizations are given responsibility for providing social housing, public facilities such as schools and hospitals, and public services and infrastructure. however, their interference in the development of cities has caused criticism and controversy, and the developers have been blamed for the poor results. in light of this, if this practice of municipal outsourcing continues, it needs to be further explored and refined for the benefit of urban communities around the world. in addition, while the development of private property leads to about $80 billion worth of new real estate investment each year, it also has its fair share of devastating financial failures that have serious consequences for many. the private sector is also vulnerable to economic cycles, and its analytical and management processes leave much to be desired. if the private sector is to continue to play a key role in the economy, its practices and professionalism must be improved. where do we begin to improve a process that is deeply rooted in the socio-economic context of our cities? other "institutionalized" processes, such as governance structures, legal frameworks, health and education systems, and commercial and financial practices, are constantly being analysed both internally by practitioners and users in order to find more effective approaches and improve productivity. in contrast to these processes, however, private development is not questioned about its american journal of business management, economics and banking volume 19 december, 2023 p a g e | 85 www.americanjournal.org fundamental principles and does not seek to improve its practices. for this reason, it is not regarded as an institutional discipline and does not command respect in the scientific and professional community. assessment of the urban development process even though the urban production process has been relatively unexplored, it has somehow become intertwined or integral with the significant physical, economic, and social outcomes described and analyzed by economists and urbanists. judging by the impact of development activities, they have very specific objectives, levels of decision-making, and procedural and managerial procedures, but these are not yet intellectually related to existing urban theory. even though this process is detailed in case studies or instructed in how-to books, and even offers self-vaunting success stories, it has not been rigorously critiqued and analyzed that it requires, given its widespread practice and far-reaching implications, each of the consequences for so many people. a complex and widespread definition of this process has been given by patsy healy (1992, 36): the transformation of the physical form, the set of rights, the material and symbolic value of land and buildings from one state to another through the efforts of agents whose interests and goals are the acquisition and use of resources, rules of exploitation, and the application and development of ideas and values. while such a definition is useful for guiding practice, unless there is an associated critique of how it is done and why it is done, or an ongoing evaluation of how it works with the intention of progressing towards improvement, real estate development cannot be carried out. an intellectually honed discipline, and it will remain a profession, although goetzmann similarly described finance as a technology or "way of doing things" that is "neither inherently good nor bad"; if such a way is offered as "increasing efficiency," then the satisfaction of that goal can be judged whether it is done well or not. thus, the private development model that is so widely used today can certainly be assessed as to whether it provides urban development with "increased efficiency" compared to previous or alternative methods. however, to limit the evaluation of the development process to the more effective creation of constructed forms would be to ignore the other effects that it has on society, all those physical, social and economic aspects that are studied and around which criticism arises. therefore, it is necessary not only to know and understand the model by which private development is practiced, but also to relate these details to the consequences that are evident as a result. as noted earlier, these effects have been described in detail in other studies, but the dynamics by which they are produced by specific model features have not been studied. without this, the practice cannot be reasonably modified to improve the outcome. crucially, as the negative effects of ill-conceived projects become more pronounced, and as the confrontation between communities in need of physical improvements and the private developers who provide them intensifies, and as educational initiatives emerge to better train practitioners, the task of deeply understanding and critiquing the very ontological structure of the real estate development process takes on new significance. the historical foundations of urban innovation for most innovations, the context in which they are implemented provides support, challenges, existing adaptation processes, and a forum in which to decide whether they succeed or fail. the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 86 www.americanjournal.org complex process of private real estate development required a complex and accidental confluence of many trends, new thinking, and dramatic social action for its birth. the details of these factors are organized around the main components of the process: land and its use, modes of trade within capitalist real estate asset creation, urban space needs in the face of the constraints of form, and the ownership and management structure of urban land and buildings. explaining the appropriate conditions in time and place for the first strategic development of private lands, this section provides a fascinating prologue to the most important events in early england. quickly moving through the fifteen centuries from the founding of the city of london by the romans, through the dramatic changes brought about by william the conqueror and the formulation of english property rights, he describes the formation of a unique relationship to land, its distribution, its use, its value, the responsibilities of its owners, and the conflicts that arise over control of it. during england's emergence from the middle ages, as well as the political and economic changes during tudor rule, the concept of land was further modified and now focused not on its simple physical form, but on its financial dimension. in addition, the country has experienced a sharp increase in national prosperity, especially in the port and commercial center of london. associated with the success of trade and the formation of a capitalist economy were methods of measuring financial performance, and talented businessmen applied them to a wide range of commercial activities, including, respectively, land transactions. the catalyst for the development of real estate in london in the 17th century was the growing demand of the population for housing. the chaotic methods of its provision have faced serious restrictions from the royal and municipal authorities. new philosophies and cultural progress were used to find solutions and improve urban outcomes, and the first english-born architect rethought the spatial and physical nature of urban forms. in the absence of state housing, capitalism guided the decisions of private enterprise in full force. land ownership became a certain type of economic activity, and builders quickly began to erect buildings of varying quality. as capital markets catered to this new business activity, it was seen as the production of a expendable, decaying structure as opposed to land of constant value, and trade markets were created to accommodate both components. the birth of modern real estate development a new model of urban development was born in the stage of capitalization was caused by these forces. combining innovative approaches with suitable traditional methods, the brave participants implemented the first private urban development projects in the form in which they continue to be carried out today. they achieved a number of notable achievements that gave impetus to this activity and its recognition by influential personalities and commentators of the time. one of the first entrepreneurs, john russell, combined a commercial pedigree with the service of henry viii and was awarded, among other honors, the title of 1st earl of bedford and the well-located lands of covent garden. he settled his family on the estate, but it wasn't until the growing demand for housing was met by concessions for well-planned and thoughtful development projects under the stuarts that the 4th earl innovatively conceived a residential area with open areas. square and parish church. his son, the 5th earl, continued to expand the project, adding commercial spaces, cafés, and theaters for the rest of the century. also at henry's court was thomas riotsley, an ambitious colleague of thomas cromwell, who took a new financial approach to the land, acquiring a vast estate north of the earl of bedford, called bloomsbury. as 1st earl of southampton, he lived close to the estate, american journal of business management, economics and banking volume 19 december, 2023 p a g e | 87 www.americanjournal.org though not on its grounds, and it was his great-grandson, the 4th earl, who followed bedford's lead and created a residential area in bloomsbury square. this estate was merged with the bedford estate as a result of his daughter's marriage to the heir of that family, and today it continues to be owned and operated by this aristocratic line. although the landed aristocrats had the advantage in their private building activities, it was the commoner nicholas barbon who designed the structure of the real estate trade so that all its components at all stages could be defined from a financial point of view. a well-known economic commentator, he provided a compelling case for real estate pricing, although he covered it up with the notorious behavior of an investment patron and personified today's recognized speculative developer. while his ingenious deal structures expanded the sources of capital for private development, his calculations and designs rejected the contributions to society made by other practitioners. as an innovative business model, these first attempts were risky, though generally profitable, while london's wealth and population grew. the private development model was adopted by other aristocratic landowners to create urban estates, but was also implemented by many builders and financially astute commoners in this and other growing urban areas of england. at the end of the century, the codification of this process is evident, and thanks to its solid incorporation of the economic, political, and social principles of the time, it became the key to the administration of many of the new colonies founded then and in the following century. a new look at real estate development: theory, principles and models by studying the historical formulation of the model of private urban development, the knowledge gained is added to the understanding, discussion and study of the activities currently being carried out. in this way, its theoretical construction is reinterpreted and incorporates some of the fundamental principles and motives that initially stimulated innovation and created an urban environment that is fairer and more beneficial to all. the details and dynamics revealed in the historical narrative are gathered into a detailed description of the activity and an identifiable business model is described. innovations related to a new approach to land control and use, larger-scale production of building forms, the creation of investment assets, and complex relationships with the public sphere are presented. the model of private urban development, as it has been identified historically, is then criticized in terms of its objectives, analytics, processes, and efficiency. based on new scientific research, the evaluation system includes economic, physical and social aspects. the study focuses on the very processes by which a constructed form is created for the use of citizens, converted into financial assets with far-reaching appeal, and has a variety of impacts, positive and negative, on the surrounding community and the public at large. in doing so, the assessment is made both in terms of how it happened at the time, as far as historical data can show, and in terms of how such heritage is currently operating. in conclusion, the focus is on the effectiveness of the private real estate development process, identified and better understood by studying its earliest formation. the disclosure of fundamental principles, objectives, and procedural issues is intended to advance the theoretical framework of the real estate development process. in this way, the globally diffused model of urban development can be subjected to a more rigorous assessment and critical examination, with certain analytical and american journal of business management, economics and banking volume 19 december, 2023 p a g e | 88 www.americanjournal.org managerial functions being modified and improved, and its integration into a mutually beneficial symbiosis with urban communities being formulated and promoted. in addition, such an intellectual foundation of real estate development practice supports the academic progress of the industry. a historical period of time in the face of an ancient british town. a historical time interval is chosen for a purpose. the common notion of giving someone free space in exchange for some benefit is undoubtedly deeply rooted in people's social activities. however, the transaction itself has always been informal, both legally and temporally: the availability of space, the control over its use, and its barter value differed significantly for primitive man in a cave. early agrarian settlements, serfs of feudal times, or even many citizens of classical civilizations. the formal concept of real estate as a stable, owned and marketable asset has not yet been formed. moreover, claims to land have been inextricably intertwined with the power structures of many civilizations. it is clear that since land has been the primary resource for meeting basic food and shelter needs, it has been considered a highly desirable asset around the world for centuries. however, while highly desirable as such, it has invariably been firmly held in the hands of a relatively small number of people around the world and for centuries. that is, until the very structure of obtaining the necessary resources of existence has changed dramatically. if we focus here on the european circumstances, the feudal system that had dominated economic and social conditions for centuries gradually disintegrated as it was challenged by the emergence and persistence of trade, mercantilism, and then industrialization. european countries had a population of workers who were not necessarily associated with the cultivation of the land, and they were usually located in urban areas, where trade activities were concentrated and production systems were established. in addition, successful merchants and industrialists often sought to be present in cities for business efficiency, political proximity, or social advantages. by the 16th century, england had experienced the emergence of numerous centers of agrarian trade, in addition to the use of the superbly constructed fortifications and major buildings of the city of london as a key port for some exotic imports, the arrival of european migrants, and the location of some small crafts and trade. royal residences in the city of westminster also sprang up nearby, housing providers of services to the crown, various ministers and councillors, as well as hangers-on to society. the evolution of these two cities, or rather the several miles of land between them, was observed in detail during the 17th century by numerous typography historians such as stopes, stripe, and summerson. vanessa harding, a well-known historian of the era, notes that london was undergoing "rapid and even revolutionary changes, especially with regard to its social development." the political, philosophical, economic, and social changes that accompanied this growth contributed to the emergence of modern london, modern business, modern science, modern politics, modern literature, and modern english man. indeed, as usual in such dramatic times, the stories of the people who organized, manipulated, benefited from, or disrupted such changes made for fascinating and enlightening reading: the 17th century in london was a period full of significance and growth. few events of the past are so interesting, and none of them can show such fateful events as the civil war, the last of the great epidemics, the [great] fire, and the exile of [king] james ii... century found london to be a wooden city. and left it a city of bricks – "from sticks to bricks," as king james i wittily put it. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 89 www.americanjournal.org it was during this time that the population almost doubled, and london went beyond its roman walls and moved confidently westward, towards westminster. the resulting need for housing, the potential of well-located land, new economic adventurism, social activism, the vacuum of municipal government, and many other features of this century gave rise to a new method of modifying the london printing press and the people who did it. it is an incipient process of private development as an organized economic activity. although this model did reach its essential formulation in about fifty years, from the 1630s to the 1680s, its emergence was not revolutionary, but rather gradual, similar to the gradualist interpretations of the industrial revolution by scholars in recent years. at the dawn of the 17th century, the first outbursts of activity began, and at the end it was firmly established in the modern capitalist city of london. references 1. рудней линь джеферис «history and development of real estate investment (property) valuation models» 2. патриссия дерингтон «built up: an historical perspective on the contemporary principles and practices of real estate development» 3. karimov i.o. ways to improve the efficiency of investment projects in construction. acadenicia an international multidisciplinary research journal issn 2249-7137 vol.10 issue 5, may 2020. 4. karimov i.o. attracting investment projects to the construction industry and improving their efficiency. saarj journal on banking & insurance research 10 (1), 47-53, 2021, south asian academic research journals. 5. metelev s.e. transformational transformations in russia and criminal phenomena at the present stage of society development. criminological journal of the baikal state university of economics and law. 2014, no. 1, 69-76-p. 6. metelev s.e., chizhik v.p., elkin s.e., kalinina n.m. investment management. moscow, 2015. 7. иномжон ортикбаевич каримов. қурилиш корхоналарида инвестицияларни бошқариш самарадорлигини аниқлашда вақт омилининг ўрни ва аҳамияти. o'zbekistonda fanlararo innovatsiyalar va ilmiy tadqiqotlar jurnali.№2. 2023/11/21 8. m ya isokhuzhaeva, aa mirisev, io karimov, so ibragimov. journal of positive school psychology. legal factors affecting the efficiency of state management of the digital economy. № 6/72022/10/3 9. www.mf.uz – website of the ministry of finance of the republic of uzbekistan. 10. www.stat.uz – website of the state statistics office of the republic of uzbekistan. https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://bestpublication.org/index.php/ozf/article/download/8275/8500 https://bestpublication.org/index.php/ozf/article/download/8275/8500 http://mail.journalppw.com/index.php/jpsp/article/view/12559 http://mail.journalppw.com/index.php/jpsp/article/view/12559 http://www.mf.uz/ http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 212 www.americanjournal.org economic essence of current assets and its significance in strategic management accounting normatova gulmira xayrullaevna independent researcher of tashkent institute of finance e-mail: n-gulmira-x@mail.ru orcid: 0009-0008-2748-0696 a b s t r a c t k e y w o r d s the article considers economic definition of current assets, their components and bases of organization of strategic management accounting, and also analyses results of the study conducted by foreign and domestic economists. various approaches of foreign and domestic scientists to determine the economic essence of " current assets” and “inventories” have been generalized. the article gives recommendations on definition of tasks of strategic management accounting of current assets in economic entities. current assets, inventory, raw materials, work-inprogress, cash, short term investment, debtors, strategic management accounting of current assets. introduction in order for business entities to operate effectively, current assets occupy an important place, regardless of their form of ownership or type of activity. depending on the amount of current assets, their structure and dynamics of change, the effectiveness of the activities of economic entities through such important indicators as financial stability, level of solvency, liquidity is assessed, the dynamics of prospects are analyzed. therefore, scientific research in the field of accounting of current assets, its analysis and audit has always been one of the most relevant topics, and at the same time its relevance is growing even more. literature review the result of scientific research carried out within the framework of this topic shows that so far the accounting, analysis and audit of current assets as noted above are not only issues, there are a number of problems that await its positive solution both in theoretical and organizational issues. one of the most important of them is the issues of the economic interpretation of the concept of current assets and the approach to the essence of its components. therefore, in our opinion, it is important to start accounting for the current assets of business entities by clarifying its essence. in world practice, as well as in the views of economists, the generally accepted following interpretation of current assets is common: “current assets (angl. current assets) are assets that are converted into funds in a single production cycle or for a year. unlike long-term assets, current assets american journal of business management, economics and banking volume 22 march 2024 p a g e | 213 www.americanjournal.org are not designed for long-term use. current assets are reflected in the second section of the balance sheet " [1]. regarding this issue, the economist scholar saoud j.mashkour alamru noted: "current assets represent the value of all assets that are expected to be converted into cash within a year in the normal course of a business. current assets include commodity stocks, receivables, securities sold, cash, prepaid expenses, and other liquid assets that can easily be converted into money" [2]. within the framework of this topic, he is an economist scientist who has carried out scientific research.a.nurmanov described that” current assets are mobile assets of a business entity in constant motion, and during one production (regulatory operation) cycle, assets that completely transfer their value and form to the products being created, which include commodity – material reserves, expenses of the coming period, deferred expenses, funds, short-term investments, debtors and other current assets. " [3] also from the scientists of another country d.mavlyanova, on the other hand, said in her study that “current assets are understood as a value that is advanced in the form of money for the formation of production and circulation funds, which always goes from one functional form to the appearance of another form” (d.a., 2020) [4]. other literature on the industry provides the following commonly used formula of current assets: "current assets = cash + cash equivalents + reserve + removable schemes + marketable securities + prepaid expenses + other liquid assets (current assets = cash + cash equivalents + inventory + accounts receivable + market securities + prepaid expenses + other liquid assets)" [5]. in the context of the transition of the world economy to the digital economy, the concept of "digital assets" also arises in accounting. in his article in "accountancy", considered one of the most prestigious journals in the united states, neil amato, an economist from the united states, [6] pointed out the methodology for accounting and auditing, arguing that digital assets are being entered by professional organizations. focusing on the opinions of the above researchers, they have mainly described and covered current assets in terms of financial accounting. but the importance of current assets has not been researched in terms of strategic management accounting. as a result, it is a current issue to organize, maintain and conduct research on their strategic management accounting. analysis and results. the result of scientific research shows that practicing economists, as well as theoretical scientists, were able to cite the purpose, tasks, functions, subject, method and principles of management accounting on a systematic basis and have achieved scientific justification. but they have not been able to clearly show the difference between the three types of management accounting that are considered the most important, namely operational, tactical and strategic types of management accounting. they also allowed confusion in the objects, subjects of these types of management accounting, as well as in the means of implementing the type of account. in our opinion, adding to the feedback of these economist scientists on the purpose, tasks, functions, subject, method and principles of management accounting, we propose to represent three types of management accounting, namely operational, tactical and strategic management accounting, as a system in the following order (table 1). as can be seen from the data of table 1, strategic management accounting is a system of providing the top leaders of the economic entity with relevant information, which will be based on external american journal of business management, economics and banking volume 22 march 2024 p a g e | 214 www.americanjournal.org factors that affect the increase in the competitiveness of the economic entity, as well as long – term decisions on the assessment of internal capabilities and their effective use. table 1. types of accounts in the management accounting system даражаси объекти субъекти воситалари operative centers of responsibility heads of responsibility centers methods such as standard-casting, direct-casting, jit, full cost tactical business entity leaders in charge of activities and departments programming, budgeting, avs-casting, direct-casting, svp analysis, fqt strategic economic entities engaged in the same activities in the regional and foreign markets senior management swot-analysis, gap analysis, scenario analysis, strategic applications, strategic budgeting, etc.k. the tactical level of management accounting – provides the leaders of the middle branch of the business entity in a quick way with the information necessary for them to make management decisions. this account type of management account compared to a strategic management account has a very short time span, usually one reporting year, a high level of data accuracy, a very short data width and is clearly oriented. in the formation, collection analysis and presentation of information, this type of management accounting uses methods of planning, programming, budgeting, avscasting, direct-casting, cvp analysis, functional-value analysis. as can be clearly seen from the data of the proposed schedule, the object of this type of account is the economic entity. operational management accounting, which is considered the object of centers of responsibility (cost, income, profit and investment), has the task of establishing an inverse data link to them in order to immediately draw attention to this situation when a significant deviation from the planned amount of their actual parameters for economic indicators representing the activities of economic entities. operational accounting serves for the delivery of relevant data for managers, which is intended for fast and short periods. for short periods, the indicators of the activities of any voluntarily acquired economic entity will be clearly established, but the resources will be extremely limited, in accordance with which effective use of them will be required. in such situations, the stability of the business entity allows you to choose the best option of action within a limited range of alternatives and use forecasting methods. it should be noted that the operational, tactical and strategic types of management accounting are inextricably linked with each other, therefore, in practice, a clear border cannot be drawn between the data that is being formed through them. also, at the same time, the differences between the strategic and operational levels of management accounting are clearly manifested. this situation finds its clear expression in the development of the theoretical foundations of the management accounting system. as a result of the above-mentioned approaches and the generalization of the views of many more scientists on this issue, it can be concluded that, in our opinion, the definition of the so-called existing concept of "current assets" does not meet the requirements of international standards. in regulatory legal acts and approved forms of financial statements, there is a need to coordinate the composition of current assets with the requirements of international standards. in practice, accountants feel a lack of methodological recommendations that are consistent with the requirements of standards when evaluating, accounting and reflecting current asset articles in reports. american journal of business management, economics and banking volume 22 march 2024 p a g e | 215 www.americanjournal.org in particular, number 1 treats the following as a criterion in bhms recognition as current (turnover) assets: 1. current assets-the economic entity is considered part of the operation activity, and within the framework of the normal operation cycle of the entity, its receipt and consumption are expected. 2. held mainly for resale purposes or expected to be used in the short term or for 12 months from the reporting date. analyzing this situation, it should be noted first of all it is not correct to consider current assets as part of operational activities, it is correct that it participates in operational activities. but, it does not concentrate operatic activity in a complex, that is, in its entirety, and accordingly does not fully express its essence. accordingly, in bhms no. 1, it is desirable to change these aspects. in the plan of accounts in accordance with bhms no. 21, the following sections are attached for accounting of current assets: "1. commodity-material goods, 2. future period spending and extended spending-current part, 3. removable accounts, 4. cash, short-term investments and other current assets " [7]. at this point, it is worth noting that the same approach does not exist regarding the interpretation of each of the above-mentioned sections of current assets. in particular, the views of scientists from abroad and our country on the determination of the components of reserves are summarized in the table below (table 2) table 2. components of reserves approaches of economists on components of reserves kitaev a.v. keri-mov v.e ergashe va sh. litneva n.a. bogache nko v.m. kulikova l.i. i dr alixande r d. bxxs raw materials and materials (raw materials) + + + + + + + + semi-finished products + + auxiliary materils + + components + + fuel + spare parts + + + unfinished production (work-inprogress + + purchased products + finished products (finished goods) + + + + + + goods + + + + own production semi-finished products + building materials + farm inventory and items + + + + + returned waste and useful residues + + + container and dishbop materials + + other materials + packaging materials (packing materials) maintenance materials (mro materials) american journal of business management, economics and banking volume 22 march 2024 p a g e | 216 www.americanjournal.org as can be seen from the data of table 2 above, russian economist scientists, in particular a.v. kitaev and v.e.kerimov the lar used the term" material-production reserves". also, these scientists did not provide for the consideration of unfinished production (work-in-progress)," semi-finished products "and" components", which are taken into account in the international standards of accounting in the"material and production reserves" section. of the economic scientists of our republic, sh.ergasheva stated the composition of commodity and material reserves mainly in accordance with bhms no. 21. in foreign literature, reserves are divided into four categories recognized by international standards: raw materials and materials, unfinished production, finished products and goods (table 2). as can be seen from the results of the above feedback as well as table 2 data analysis, there is also no single approach to defining the composition of stocks with one important element (section) of current assets. in order to effectively organize and maintain strategic management accounting of current assets in business entities, in our opinion, it will be necessary to coordinate the composition of the reserves that are its components with the rules of international accounting standards. also, the organization of other parts of current assets at the level of the requirements of international accounting standards is an important factor for the organization of their strategic management accounting. conclusions to organize a strategic management account of current assets in economic entities on the basis of the above, in our opinion, it will be necessary to correctly formulate the scale of the tasks before it. we believe that strategic management accounting in terms of current assets, unlike other types of accounting, that is, it is advisable to be directed to perform the following important tasks that they do not perform: serves to establish the strategic and in accordance with the tactical objectives of the economic entity and to carry them out; to achieve the strategic and tactical goals of the business entity, it takes into account the factors of the internal and external environment (not just internal factors, as in other types of accounting) in a complex way; shall scallop the database necessary to ensure the future of the business entity, provide management with the information necessary for them to make strategic management decisions related to current assets in a seamless and fast way; serves as a means of "foresight, accounting and orientation" for the management of the economic entity. references 1. https://ru.wikipedia.org/wiki/ 2. saoud jayed mashkour. accounting in english (pp.51) publisher: printed by : dar al-dhiya for printing and designs 2 ed, – najaf – february 2019, https://www.researchgate.net/publication/331287344_chapter_4_current_assets 3. pardayev a.x., pardayeva z.a. accounting: textbook / t.: "economics-finance", 2019. -556 b. 4. drury k. (2003) management accounting for business solutions: textbook / translated from english -m.: unity–dana, 665 p.nurmanov u.a. improving the methodology of current asset https://ru.wikipedia.org/wiki/ https://www.researchgate.net/profile/saoud-mashkour https://www.researchgate.net/publication/331287344_chapter_4_current_assets american journal of business management, economics and banking volume 22 march 2024 p a g e | 217 www.americanjournal.org analysis. dissertation authorization written to obtain the degree of doctor of economic sciences (dsc). tashkent.: tmi, 2022 5. mavlyanova d.m. improving the methodological aspects of current asset accounting, analysis and audit. dissertation authorization, written to obtain the degree of doctor of philosophy (phd) in economic sciences. tashkent.: tmi, 2020https://byjus.com/commerce/what-are-current-assets/ 6. neil amato. digital assets: auditing, accounting, and what’s next december 3, 2021, https://www.journalofaccountancy.com/podcast/cpa-news-digital-assets-auditing accounting.html https://byjus.com/commerce/what-are-current-assets/ https://www.journalofaccountancy.com/podcast/cpa-news-digital-assets-auditing%20accounting.html https://www.journalofaccountancy.com/podcast/cpa-news-digital-assets-auditing%20accounting.html american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 128 www.americanjournal.org integration between technicians and reengineering deconstructed analysis to rationalize costs and support competitive advantage mohammed abed kadhim (1) yshsgy@gmail.com ali mohammed thijeel al-mamouri (2) asst.prof.ali@pgiafs.uobaghdad.edu.iq the post graduate institute of accounting and financial studies accounting studies departmentuniversity of baghdadiraq (1,2) a b s t r a c t k e y w o r d s the intense competition witnessed by the contemporary industrial environment and the rapid developments have made economic entities practice their work in a competitive environment directed by the customer, and thus it is better for them to achieve added value on their part if they want to continue and maintain their competitive position. the research aimed to explaining the integration between the techniques of re-engineering and deconstructed analysis to rationalize costs and support competitive advantage, as the use of deconstructed analysis and re-engineering techniques is directly linked to the desires and preferences of the customer and providing the product or service that suits his needs, and this would lead to improving the value of the product or service, as a result, rationalizing its costs, as well as using re-engineering technology before economic entities, leads to increasing the quality of the product, reducing its costs by making a radical change, and eliminating manufacturing process activities that do not increase the value of the product in relation to the customer’s requirements. therefore, it is necessary to work on changing the reality of the cost system applied in the economic entity by modernizing it by applying modern technologies concerned with cost rationalization, represented by the deconstructed analysis technique for its prominent role in the process of calculating the cost of a solid scientific product, which was adopted in this research due to its focus on methods of manufacturing the cement product in light of the requirements. the customer has an employment relationship with the reengineering technology. process re-engineering, deconstructed analysis, cost rationalization, competitive advantage. . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 129 www.americanjournal.org introduction re-engineering technology represents all practices, procedures and activities that contribute to increasing or maintaining the adequacy and effectiveness of the production equipment of the economic entities, which contributes to achieving the purposes of the economic entity, which are linked to lower cost and high quality. therefore, it is important in all production stages that start from the design stage. all the way to the final products. as the term process re-engineering means starting over with the modern administrative method, which relates to the operations and work performed by economic entities, there are those who call it (administrative process engineering, engineering, redesign), but no matter how different these names are, they are identical to the point of matching (harush ,2015:318). the deconstructed analysis is not to evaluate the process of manufacturing the product after its design, and to make appropriate changes to its design, but rather because it aims to reach the integrated design of the product, and the processes related to its production and assembly as for hilton, it is one of the manifestations of the development of value engineering to cover customer requirements at an early stage and to create new functions (characteristics) in the product through methods of analyzing competing products in terms of the materials they contain, the number of parts used, functional performance, methods manufacturing it to provide the best (hilton, 2008:652). the acceptable and sufficient time period can be determined to cover the investment costs of the project through refund period and the investment project preferred that themoney recovered in the shorter period. (hamdan, et al,.2018) . to improve production methods, reduce environmental impacts, and use the economic unit’s resources economically (khalil, & barzan,2022) the first topic: process re-engineering first: the concept and importance of process reengineering. the concept of process engineering is one of the technologies concerned with improving and developing planning performance by radically redesigning the operations of the economic entity, or inventing new and necessary processes that are compatible with developments and changes in the external environment (al-khafaji, 2019: 55 ). it is a set of steps aimed at achieving a distinguished competitive position, in light of the pressures generated by the customer. recently, there has been increased interest in process re-engineering from decision makers from senior management in economic entities. in the same direction, one of the researchers indicates that it is the process of creating a new model of economic entities that responds to competitive conditions and the new environment because it is. sharp and cautious attention to the organizational gap between existing organizations with regard to levels of performance and production, by working to develop and modernize work methods, in a way that helps create a breakthrough in performance over a period of time. (al-lawzi, 1999: 266) a systematic administrative method that relies on rebuilding the organization from its roots, restructuring the building, and designing the main and basic processes to achieve fundamental development in the performance of economic entities in a way that ensures speed of performance, reduction of cost, and improvement of product quality. it is an effective program for implementing a strategic turning point through process re-engineering with the goal of achieving significant gains in service, cost, and time a logical, sequential, similar group of activities that takes inputs from resources, adds value to them, and produces outputs for customers. (damij, 2014: 19) it is a group of techniques that aim to re-engineer processes for all processes in economic entities by redesigning them in a way that achieves effectiveness in performance and relying on different techniques that seek to achieve goals . knowledge and more american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 130 www.americanjournal.org detailed information about the company (yaqoob& hassan, 2020). the idea of process re-engineering is based on commitment to the following principles (john, 2010:219): it redesigns the process from beginning to end, in a way that enables the economic entity to perform more than one job at the same time. using information systems technology and using the correct methods and techniques in applying centralization and decentralization. obtaining information, and then determining its source to link similar or similar activities instead of unifying their results. abandoning old traditional systems, adapting to changes in the surrounding environment and achieving survival and continuity. .avoid jobs and jobs that are not of excessive value increasing knowledge, learning through rationalization of decisions, and control with the help of technology. quality is now a key factor in the evaluation of economic units , their level and the maintenance of their performance ,( thijeel, & bachay, 2019). the logical element for assigning cost informed the big different in result afer and before using the resource consumption accounting the reason for this as the recognition of causal relationship between support department based on consuming objects (yaqoub, & fadhil, 2020). second: the importance of process re-engineering: re-engineering helps economic entities use their skills and resources to create new technologies as an alternative to old technologies, which makes those entities fall behind in the competitive race. most researchers and specialists agree on the importance of process re-engineering as it is one of the approaches aimed at improving performance. economic entities and their development, and to achieve the importance of re-engineering, we find it lies within the following points, which are (rayhan, 2014: 27): integrating specialized activities into one activity, as activities with one purpose are collected, eliminating overlap and duplication. implementing work steps according to their nature, which leads to completing a group of steps at the same time, and reducing the time between work steps. process re-engineering programs are adopted and are as follows (changing dynamic customer desires, increasing competition, continuing change). according the high levels of expectations or desires of customers, and the increasing intensity of competition between companies to meet those expectations and desires, companies have to pay increased attention to re-engineering operations and responding to change in the surrounding environment. (thong et al, 2000: 246). it helps to eliminate all operational activities that cause high costs, loss and waste and implement them with better efficiency, use appropriate information technology, and quickly adapt to the environment. process re-engineering allows the economic entity to deal with the market and environmental forces better than its competitors to achieve flexibility to meet changing market requirements and to face low competitor prices, and to have the technical ability to improve the plan and the ability to provide the best service to customers. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 131 www.americanjournal.org the second section: deconstructed analysis to rationalize costs and support competitive advantage first: the concept and importance of deconstructed analysis: deconstructed analysis is an approach to understanding the structure and sequential operations that were implemented to deliver the product, and to provide a detailed report containing all procedures, specifications, and manufacturing methods, as it is useful in designing the sequence of operations and implementation steps to design or develop new products (wong , 1999:10), as it begins with the process of disassembling a finished product to identify its components and specifications, which is the opposite of the usual natural design process. the deconstructed analysis gives a planning dimension when it prepares a competitive plan for manufacturing that seeks to achieve its dimensions, which are integration, standardization, and optimization, in order to make the best use of resources in the design and manufacturing processes, as necessary to improve the performance of these processes and maximize the excess value for the customer. (kahveci; okutwus, 2015:344) the process of collecting information that helps the economic entity focus on competitors’ products in order to promote better interaction between engineering, design and manufacturing by studying the differences in design between its products and those of its competitors. companies seek to improve the quality of their products by relying on this information (barfield et.al, 2001: 309). a process that involves examining a competing product in order to identify opportunities to improve the product and/or reduce costs. the competing product is taken apart to determine its functionality, design, and provide information about the processes used and the cost of making the product. the aim of this process is to conduct a benchmark comparison between the temporary designs of the product with the designs of competitors in order to incorporate any advantages observed in the approach followed by competitors. (drury, 2018: 545) the importance of applying deconstructed analysis as an input to change comes from the role played by the stages of its application on in a way that is in harmony with the conditions in which the product operates. (stevenson, 2005: 155), awareness of the upcoming changes in the market has made the manufacturing economic entities able to benefit from deconstructed analysis techniques as a proactive plan to manage the cost, and the product to maintain market share and become a market leader. hence, it is an important tool to maintain the efforts of comprehensive manufacturing economic entities to remain competitive in terms of providing products at the lowest cost while meeting the standards and specifications required by customers (drury, 2000: 892). second: cost rationalization and competitive advantage: cost rationalization depends on the optimal use of the entity’s control resources and good direction for the purpose of providing products and goods at the lowest costs. and by following administrative methods to obtain a competitive advantage and achieve a competitive position. rationalization means economy in performance, which helps the planning process achieve rationalization by focusing on the efficiency of work and compatibility in effort. it replaces uncooperative planned joint efforts, an equal flow of work instead of an uneven one, and studied decisions instead of wise decisions dictated by necessity. (saad; jawad, 2020: 177), deconstructed analysis plays an important role in rationalizing costs at a very early stage, as the budgeting process is adopted in the design or development of the product on the basis of the availability of customer requirements that are not available in the current product, and looking at the customer is an essential and influential part in the stage. development to determine the advantages of the product (cost, quality, function). (ibrahim, 2012: 54) this requires american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 132 www.americanjournal.org compatibility between parts and components, which can be changed easily thanks to this method. therefore, the majority of the product costs will be determined in the design and development phase before manufacturing. this contributes to reducing the gap between costs. the actual and standard cost, i.e. the deconstructed analysis, is the method of managing costs to satisfy customers, from defining the product, determining the customer’s requirements, the budget, and a detailed description of the components and processes in order to control or control, from developing alternative solutions, whether to cause a change in the components or the process, which makes it more sufficient than others in providing a superior product. than others, so the deconstructed analysis is faster in reaching the market or penetrating the future and after choosing the product to be produced based on market studies, etc., the competitors’ prices for that product are known, and then the profit margin determined by the product is subtracted. (industrial) based on a specific plan, and the remaining amount is the targeted or permissible cost. (buonamici, 2018:447), the problem lies when the production costs are more than the targeted cost. here, value engineering technology is used to redesign the product based on its functions, that is, determining the required functions, and identifying the components that perform this function. and redesign according to the deconstructed analysis based on the dismantling of the best, similar product, and proposing design alternatives through components that are able to achieve the targeted cost and the qualities required of the targeted elite. today’s deconstructed analysis is more than just a plan to copy a competing product, but rather it is a technology that helps learning and increases people’s intellectual capabilities, which helps motivate them to adopt new methods that increase the characteristics of the product, which leads to increased demand for commodity, and stimulating competition in the market. this means that creativity is what leads to achieving competitive advantage, and of course creativity is what all economic entities seek to win in the market, especially in markets with high competitiveness, as creativity here is a plan for differentiation and enhancing ability. competitiveness of economic entities . cost rationalization depends on the optimal use of the entity’s resources through control and good guidance for the purpose of providing products and goods at the lowest costs. and by following administrative methods to obtain a competitive advantage in order to achieve a competitive position ,customers benefit from high-quality products at low prices. (zengin; ada, 2010:59). the increase in growth rates in the various fields of production through which the individual income rate increases and the relationship and feedback between inputs and outputs are stimulated ,( ali, abd , & kareem , 2022). the third topic: integration of re-engineering and deconstructed analysis techniques to rationalize costs and support competitive advantage . deconstructed analysis enables the economic entity to know quality problems and the possibility of eliminating them when applying re-engineering, which leads to reducing the cost of products, and thus pricing products at prices lower than the prices offered in the market, through which these entities obtain a competitive advantage, among the most important benefits mentioned by some researchers and specialists in applying deconstructed analysis in light of the decision to adopt the re-engineering approach are what we summarize as follows: minimize the number of parts used in the product as much as possible. the fewer parts and the more options, the better the quality of the product. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 133 www.americanjournal.org optimal use of the material and human production processes and resources available to the economic entity. the analysis reveals the causes of failure and accurately estimates the value, and the possibility of continuous development of the product in order to meet current needs and needs that may appear in the future. it leads to reducing production costs to a minimum, especially for the last meals, as well as the costs of modifications to the quality of the product later, and the costs of services and maintenance in the first stages of product provision. production capacity at its maximum capacity, taking into account future expansion and development. reducing training time, as well as increasing employees’ experience and skills. reducing costs as much as possible. economy and safety in using the product. achieving quality standards, improving customer service, and improving the image of the economic entity before them. identify new opportunities and reduce missed opportunities . – one of the most important benefits of applying deconstructed analysis in light of adopting reengineering to rationalize costs is what we summarize as follows: reducing the number of changes required in product design. correct performance of processes leads to a reduction in rework and redesign operations, which leads to a reduction in development time, achieves production flow, reduces cost, improves quality, and reduces the time to reach the market center. rapid response to changes in customer requests. the life cycle of products is currently short and customers are characterized by rapid change in their tastes and demands. therefore, economic entities must be quick to respond to these changes and be the fastest in getting their product to the market in order to ensure that the customer gets the product, which leads to increased sales. the profits are that a delay in reaching the customer leads to a loss of sales, and the application of the methods of deconstructed analysis and re-engineering leads to a reduction in the overall design and production time, and thus the product reaches the customer in less time. improving the competitive capabilities of economic entities: applying deconstructed analysis in light of re-engineering helps economic entities improve their competitive position and contributes to reducing costs to the lowest possible extent, which leads to increased profitability. the great diversity in product assortment and the short life cycle of products make economic entities enjoy an advantage. temporary competitiveness may disappear at any time if a better product appears from the customer’s point of view or customers’ taste changes. in order for the economic entity to enjoy a permanent competitive advantage, it must compete over time, that is, reducing the response time to customer requests and the arrival of the product to the market, which leads to increased sales and profitability and obtaining customers. renew and achieve a competitive advantage, creating a new type of competition is time-based competition. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 134 www.americanjournal.org the fourth section: conclusions and recommendations conclusions 1-the technique of deconstructed analysis is one of the important re-engineering tools, as it is based on the proper identification of the activities of the economic entity, including identifying activities that increase value, deleting activities that do not increase value, or reducing their cost. 2the use of deconstructed analysis and re-engineering techniques is directly linked to the desires and preferences of the customer and providing the product or service that suits his needs. this would lead to improving the value of the product or service and, as a result, rationalizing its costs. 3the use of re-engineering technology before economic entities leads to increasing the quality of the product, reducing its costs by making a radical change, and eliminating manufacturing process activities that do not increase the value of the product in relation to the customer’s requirements. 4deconstructed analysis (reverse engineering) is considered one of the most important tools used in achieving targeted cost rationalization, because it is based on the basis of evaluating the competing product in order to identify opportunities to develop the economic entity’s product, and as a result, modifying the second according to the specifications of the first. recommendations 1the need for the economic entities in the research sample to apply the deconstructed analysis method in light of adopting re-engineering in view of the development taking place in the industrial environment and manufacturing technologies, which requires those entities to develop their manufacturing and production methods in order to achieve their planning purposes. 2the necessity of providing the necessary components and requirements for applying a re-engineering approach to ensure its success in rationalizing costs and enhancing competitive advantages for the economic entity. that entity must focus on rationalizing the cost, availability of products, and time to ensure competitive advantage in light of re-engineering by employing deconstructed analysis. 3working to make a change in the reality of the cost system applied in the economic entity by modernizing it by applying modern technologies concerned with cost rationalization, represented by the deconstructed analysis technique for its prominent role in the process of calculating the cost of a solid scientific product, which was adopted in this research due to its focus on methods of manufacturing the cement product in light of the customer’s requirements. it is an employment relationship with re-engineering technology. 4creating a division specialized in deconstructed analysis in the laboratory. its work will be within the research and development department, and its main interest will be to study the market, learn about the advantages enjoyed by competing products and compare them with the laboratory’s products, find out what suits the tastes of customers, and try to develop and modernize the products, especially the resistant cement product. according to the market study, and an attempt to benefit from reengineering technology and its tools to improve and develop production processes, and raise the level of the product in a way that enhances the competitive advantage and makes it a strong competitor in the market. 5-the integration between management accounting technologies contributes and provides more benefits to the economic entity than applying a single technology, in order to benefit from the advantages, characteristics, or benefits of those two technologies (re-engineering, deconstructed american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 135 www.americanjournal.org analysis) together, as well as to enhance their strengths and avoid points weakness, this leads to better exploitation of resources, and entity ensures the reasons for the availability of competitive advantage, as well as continuity in light of a dynamic environment. references: 1. al-azzawi, muhammad abdel-wahhab, “total quality management,” first edition, dar alyazawi for publishing and distribution, amman, jordan, 2005. 2. ali, r. h., abd , w. h., & kareem, a. d. (2022). the role of the federal office of financial supervision in auditing industrial activity to achieve sustainable development. world economics & finance bulletin, pp. 11, 38-48. 3. al-khafaji, ali tahseen, “activating the role of accounting information systems in evaluating and improving strategic performance using integration between the balanced scorecard techniques and process re-engineering,” a master’s thesis submitted to the college of administration and economics, university of karbala, iraq, 2019. 4. buonamici , francesco , " reverse engineering modeling methods and tools: a survey " , computer-aided design & applications, vol. (15) , no. (3) , 2018. 5. buonamici , francesco , " reverse engineering modeling methods and tools: a survey " , computer-aided design & applications, vol. (15) , no. (3) , 2018 6. damij, n., "process management a multidisciplinary guide to theory" ,modeling, and methodology. springer , 2014. 7. hamdan, k. h., bachay, i. r., flayyih, h. h., & talab, h. r. (2018). using capital budget and sensitivity analysis to predict future cash flows and evaluate investment projects: empirical study at iraqi company for production, marketing and meat and field crops. journal of engineering and applied sciences, 1-12. 8. haroush, nour al-din, “management science from the traditional school of engineering,” first edition, dar al-ayyam publishing and distribution, jordan, amman, 2015. 9. hilton, r.w. , managerial accounting: creating value in a dynamic business environment, mcgraw-hill, 6th edition , 2005. 10. john r. , "introduction to management " ,international student revision ,printed in john wiley &sons ,ins,2010. 11. khalil, m. m. e., & barzan, s. (2022). achieving ensuring sustainable consumption and production patterns through a green internal audit (applied research). journal of madenat alelem college, 14(2). 12. rayhan, shadi yahya, “obstacles to the application of administrative process engineering (engineering) in government schools in the gaza governorates and ways to reduce them,” a master’s thesis submitted to the college of education, islamic university, gaza, palestine, 2014. 13. saad, salma mansour; jawad, abdullah ghalib, “activity-based costing technology and its role in rationalizing costs,” journal of accounting and financial studies, volume (15), issue (52), 2020. 14. stevenson, w., "operations management", mcgraw-hill, irwin , 2005. 15. thijeel, a. m., & bachay, i. r. (2019). sample for the inner control on the quality in accordance with standard. opción: revista de ciencias humanas y sociales, (20), 566-582. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 136 www.americanjournal.org 16. thijeel, a. m., flayyih, h. h., & talab, h. r. (2018). the relationship between audit quality and accounting conservatism in the iraqi banks. opción: revista de ciencias humanas y sociales, (15), 1564-1592. 17. thong, james y.l., yap, chee-sing & seah, kin-lee., “business process reengineering in public sector: the case of the housing development board in singapore”, journal of management information systems, vol. 17, no. 1, 2000. 18. wong, kenny,1999, the reverse engineering notebook, a dissertation submitted in partial fulfillment of the requirements for the degree of doctor of philosophy in the department of computer science, university of victoria, canada, www.ivsl.org. 19. yaqoob, f., mohammed, i., & hassan, w. (2020). harmonize the pillars of corporate governance to achieve sustainability through earning quality in iraqi banks listed in the iraq stock exchange. international journal of innovation, creativity and change, 14(10), 874-898. 20. yaqoub, f. a., & fadhil, k. j. (2020). using resource consumption accounting to determine customer cost of banks. journal of economics and administrative sciences, 26(118), 93-104. 21. zengin, y. ; ada, e. , "cost management through product design: target costing approach" , international journal of production research. vol. (48) , no. (19) , 2010. http://www.ivsl.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 20 www.americanjournal.org ensuring economic growth based on the development of the digital economy vaydullayev ilyos hamidulla o'g'li university of geological sciences, head of the center for digital education educational technologies a b s t r a c t k e y w o r d s this article presents the rationale for ensuring sustainable economic growth in the country based on the innovative development of industry in the context of the digital economy. economic development, especially in the industrial sectors, the existing problems in the development of the innovative environment were studied and analyzed. also, analysis of the state of production of industrial products by types of economic activity in our country, its share in the gross domestic product and export was carried out. in addition, scientifically based proposals for innovative development of the industry have been developed. digital economy, industry, economic growth, socio-economic development, innovation, technology. introduction from the second half of the 20th century to the present day, the world economy is rapidly developing in a new format, that is, in the form of "digital economy". it is no exaggeration to say that the global pandemic of covid-19, which appeared at the end of 2019, caused this process to accelerate somewhat. this was especially evident in the management system of real sector enterprises, services, in particular electronic payments and organization of socio-economic relations. it should be noted in the population that certain factors are the reason for the structural change of any process. digital technologies are the main tool in the digitalization of the economy, especially the industry. also, a digital system will be created based on the mutual integration of qualified personnel and other factors that can effectively use these technologies. therefore, the digitalization of economic processes is carried out not by one, but by several factors. another important aspect of the matter is that new digital technologies and the organization of placement in suitable conditions require a large amount of capital. in addition, the digitization of the economy, especially the digitization of the production sector, requires new innovative developments. accordingly, the demands of today's consumers are becoming individualized and the level of uniqueness is increasing. in such a situation, enterprises can achieve to occupy consumers in the market not only by price discrimination, but also by increasing the level of profitability of their products on the basis of innovative activity. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 21 www.americanjournal.org of course, in order to achieve stable and high economic growth, economic policy in the country is of great importance. in this regard, the economic policy conducted by president shavkat mirziyoyev is a clear proof. in particular, the president's decree no. pf-60 of january 28, 2022 "on the new development strategy of uzbekistan for 2022-2026" [1] serves as the legal basis for the implementation of such economic reforms. the implementation of the tasks defined in this strategy, as well as the assessment of the impact of industry 4.0 in ensuring the stability of economic growth, and the development of scientifically based proposals for its further development. in turn, all these represent the relevance of this research topic. literature review digital technology and innovation are significant in that they encompass participation in multiple dimensions of socio-economic well-being, such as the economy, health, education, etc. [2]. that is, the fourth industrial revolution is based on the development of information technologies together with automation, computerization and robotization, which will lead to technical and socio-economic changes [3]. this helps to improve the country's socio-economic outcomes and is a major driving force for innovation and productivity [4]. according to world experience, improvement of the structure of the industrial structure on the basis of digital technology innovation increases the possibility of providing the population with high-quality industrial products [5]. in particular, the development of industry 4.0 leads to an increase in the level of employment by 3 percent and the share of industry in the gdp by 5 percent [6]. in addition, the development of industry 4.0 creates a basis for overcoming existing regional barriers in technological information, launching an international cooperation program and building a decentralized infrastructure [7]. it follows that the innovative development of the industry not only increases the creation of added value in the economy, but also leads to the improvement of product quality. also, real sector companies ensure mobility of production processes and high flexibility to market demand. in a word, it is the main factor for ensuring the country's stable economic growth. research methodology comparative analysis, graphic representation, expert evaluation, dynamic series, analytical comparison, logical reasoning and grouping methods are widely used in this research. also, the researches of foreign and local scientists on this topic were analyzed. official statistics were used in the analysis. analysis and results it should be noted that in countries with slow digitization processes, the pandemic led to an increase in the need and demand for the digitization of socio-economic and political processes and relations, and prompted the acceleration and acceleration of digitization of these processes. however, at the same time, how to manage and use the proliferation of digital information for the global benefit has remained one of the main challenges. according to the analysis, in 2022 the global internet traffic will exceed all the internet traffic before 2016. that is, data has become a key strategic asset for creating personal and social value. how this information is used will greatly influence the american journal of business management, economics and banking volume 21 february, 2024 p a g e | 22 www.americanjournal.org sustainable development of countries. because data is multifaceted, and its use affects not only trade and economic development, but also human rights, peace and security. it requires states, non-state actors or the private sector to take optimal measures to reduce and mitigate the misuse of data. currently, the rapid development of the digital economy is observed in the e-commerce, payment, education, service, financial and public services sectors. however, in digitalization of the country's economy, special attention should be paid to the industry. because it is the industry that is the main sector in ensuring the economic independence of each country and the highest in creating added value [8]. various forms of economic innovation can be cited in economic development: introducing a new product or service; introduction of a new method of production; opening of a new market; acquisition of a new source of supply of raw materials or semi-finished products; opening a new direction in any field, etc. after all, the current state of our country's economy requires accelerating the pace of implementing innovative changes in the national economy. the experience of economically developed countries shows that the implementation of a deep, effective innovation strategy can be implemented only through the rational use of the country's economic and natural factors. in the conditions of the transition to the market economy, the innovative formation of the economy occurs first of all at the expense of sectors that provide economic growth, which, in turn, causes the country's economy to reduce the export of raw materials, as well as to develop its processing, save foreign exchange funds, and increase the employment of the population. these factors, in turn, will lead to the strengthening of the country's position in the world community through the implementation of the innovation strategy. however, today's progress in science and technology, as well as the innovative changes taking place in the world market, do not allow us to limit ourselves to the achieved achievements. figure 1. the main problems in the development of the innovation environment in the industrial sector1 innovationjaraenni amalga to fine the purpose of the investment-nin adjective provision of security is necessary subjectively olayetgan foida vaisib osiriga erishishdan consists. because every kandai is an economist, as well as an entrepreneur engaged in the development of economic resources. in general, olganda, the higher education of mankind tarikh amalga oshirilgan industry revolutionizes the result of the production of desak, mubolaga bulmadi. bugunga so much 4 that industry birdie revolution: 1784 yale university, 1870 yale, 1969 yale university and leap period. 1 it was prepared by the author on the basis of the studied data. high risk when testing new technologies the preservation of traditional approaches to business organization insufficient financial support in the introduction of innovations research activities on the implementation of integration services american journal of business management, economics and banking volume 21 february, 2024 p a g e | 23 www.americanjournal.org the digital economy, which is developing and expanding at the same time, is called the fourth industrial revolution. although, it is usually associated with areas that are not classified as industrial applications per se. for example, smart home, smart city, smart farm. the foundation of the industrial internet is the integration and real-time availability and management of systems across the enterprise. this innovative process was implemented thanks to the emergence of digital solutions and advanced technologies, that is, on the basis of integration with the "internet of things" (iot). according to the analysis, the global economy benefited from the use of iot in 2018 by $175 billion in productivity benefits for enterprises, which is equivalent to 0.2% of gdp. by 2025, productivity gains from business use of iot are expected to increase to $3.7 trillion, representing 0.34% of global gdp. meanwhile, the us and china are leading the world in iot productivity growth, accounting for more than 50 percent of global profits. in addition, industrial iot connectivity could account for more than half of all connections worldwide by 2025. this means an innovative change in the industrial structure [10]. the head of our state, shavkat mirzayoev, said, "the most effective way to ensure the stability of the economy in today's changing conditions is to use internal capabilities, to produce some imported products in our country, and to further develop the industry. "this should be the priority direction of our national economy," he said. as a result of the economic reforms implemented in recent periods, the economy of our country, in particular, the volume of production of industrial products is growing rapidly. in particular, in 2021, 134,847 (91,152 industrial, 43,695 construction) enterprises and organizations are operating in the republic. this indicator has increased by 71,897 compared to 2016. it is about 25.5 percent of the total number of enterprises and organizations operating in economic sectors. 451633.9 bln. in 2021 by these enterprises and organizations. soum industrial products were produced, which increased by 108.4% compared to 2020. 42863.2 bln. soums, 375028.7 billion in the manufacturing industry. 30,803.5 billion soums in electricity, gas, steam supply and air conditioning networks. 2938.5 billion soums in water supply, sewage system, waste collection and disposal network. soum products are produced. according to the analysis, the volume of production in the mining and open-pit mining industry increased by 4.7 times compared to 2016, in the manufacturing industry by 4.1 times, and in the electricity, gas, steam supply and air conditioning industry by 2 times. .9 times, it was observed that it increased by 3.5 times in the water supply, sewage system, waste collection and disposal network. it is known from world experience that the transition from agriculture to industrial production began in england in the 18th century and later spread to all developed countries of the world, and this is called the industrial revolution. of course, today the transition from an economy based on industrial production to an economy with a developed service sector has been quite smooth. this is shown by the practice of all developed countries. however, this has led to great changes in the development of employment in society and the economy of countries. after all, two-thirds of consumer and non-consumer goods in the world economy are produced in industrial sectors. according to official statistics, about 47.8% of gdp and 22.4% of total employment in developed countries are contributed by industrial sectors [9]. international experiences show that industrial development is an important sector for the socio-economic american journal of business management, economics and banking volume 21 february, 2024 p a g e | 24 www.americanjournal.org development of the country, achieving economic independence, ensuring the well-being of the population and eliminating employment problems. in particular, in 2021, 3170.1 thousand people (1883.3 thousand in industry and 1286.8 thousand in construction) will be employed in the industrial sector of the republic, which is 23.4 percent of the total employment. also, in 2016-2021, the average annual employment in industry (including construction) was 3648.8 thousand people, which increased by 1.05 times in 2021 compared to 2016. in addition, the share of industrial products in the country's exports is increasing. in particular, the export volume of the republic in 2021 is 16610.6 mln. 51% or 8386.4 mln. the us dollar is the contribution of industrial products. conclusions when developing future strategies for the sustainable development of our country's economy, in particular, its industry, it is appropriate to consider the following: development of development strategies based on a scientific approach in the course of quantitative evaluation of the effects of factors and phenomena affecting the effectiveness of socio-economic processes occurring in industrial sectors through economic-mathematical methods; to improve the business environment, increase investment attractiveness and give foreign investors more opportunities and freedoms with an agreement to increase additional jobs; development of the activity of wide-ranging industrial clusters, based on the experience of developed countries, organization of cluster and state procurement system, thereby increasing the employment and income of the population; in order to increase the economic efficiency of industrial enterprises, it is necessary to liberalize the activities of economic entities operating in the real sector of the economy. therefore, constant communication with business, identification of obstacles that hinder the development of certain sectors and strengthening of effective measures to eliminate them; it is necessary to improve and effectively implement the investment policy strategy focused on the most promising sectors that can create a basis for the development of the country's industrial production capacity in the future. in short, we should focus on practical support for the industry that has a high share in the formation of the gdp of our country and the initiators of investment projects in the sector, deepen the reforms on the development of exports and investments, expand economic and financial freedoms, strictly ensure the inviolability of private property rights, as well as protect the rights of investors. institutional influences and focus on performance should be strengthened. references 1. decree no. pf-60 of the president of the republic of uzbekistan dated january 28, 2022 "on the development strategy of the new uzbekistan for 2022-2026". 2. michael spence. government and economics in the digital economy // journal of government and economics. volume 3, autumn 2021, 100020. 3. nasimov d.a. modern forms of employment in the context of the development of the digital economy // "economics and innovative technologies" scientific electronic journal. no. 4, julyaugust, 2020. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 25 www.americanjournal.org 4. ilyasov a.a. some problems in digital production and export of industrial products in the conditions of the digital economy // economy and finance, 2020, 3(135), 179 p. 5. dan ma, qing zhu. innovation in emerging economies: research on the digital economy driving high-quality green development // journal of business research. volume 145, june 2022, pages 801-813. 6. luyanda dube williams. concepts of digital economy and industry 4.0 in intelligent and information systems // international journal of intelligent networks. volume 2, 2021, pages 122129. 7. wenrong pan, tao xie, zhuwang wang, lisha ma. digital economy: an innovation driver for total factor productivity // journal of business research. volume 139, february 2022, pages 303311. 8. qosimov a. a. analysis of state development programs (on the example of surkhandarya region) //theoretical & applied science. – 2019. – №. 11. – с. 115120. 9. unido. pocket guide to world statistics – 2020. seriesv, №42. p.1-19. 10. digital economy report 2021 cross-border data flows and development: for whom the data flow. unctad. geneva, 2021. – p. 34. american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 1 www.americanjournal.org diagnostic value of modern methods of examining the anterior segment of the eye in secondary keratoectasia kh. m. kamilov m. s. kasimova g. kh. khamraeva d. f. ismailova center for the development of professional qualifications of medical workers, department of ophthalmology, uzbekistan, tashkent. kamilov h.m.https://orcid.org/0000-0002-7250-8159 kasimova m.s.https://orcid.org/0000-0002-2883-3923 khamraeva g.h. https://orcid.org/0000-0002-9375-5482 ismailova d.f. i-diana@mail.ru, https://orcid.org/0000-0002-7374-0574 corresponding author: diana ismailova, e-mail: i-diana@mail.ru; https://orcid.org/0000-0002-7374-0574 a b s t r a c t k e y w o r d s iatrogenic keratoectasia is a form of keratoectasia that develops as a result of medical procedures or surgical interventions on the cornea of the eye. this complication can occur after operations such as lasik (laser vision correction), prk (photorefractive keratectomy), implantation of intraocular lenses and other surgical procedures related to the cornea. secondary keratoectasia is a serious ophthalmic disease that requires accurate and timely diagnosis in order to choose the optimal treatment. modern methods of examination of the anterior segment of the eye play an important role in the diagnosis of such conditions, which makes this study relevant and significant for practical ophthalmology. changes to the cornea can lead to decreased visual function and significant discomfort in patients. the identification and effective treatment of secondary keratoectasias requires accurate and detailed diagnosis. cornea, keratoconus, keratoectasia, secondary keratoectasia. introduction iatrogenic keratectasia is a form of keratectasia that develops as a result of medical procedures or surgeries on the cornea of the eye. this complication can occur after surgeries such as lasik (laser vision correction), prk (photorefractive keratectomy), intraocular lens implantation, and other surgical procedures involving the cornea. https://orcid.org/0000-0002-7250-8159 https://orcid.org/0000-0002-2883-3923 https://orcid.org/0000-0002-9375-5482 https://orcid.org/0000-0002-7374-0574 https://orcid.org/0000-0002-7374-0574 american journal of business management, economics and banking volume 28 september 2024 p a g e | 2 www.americanjournal.org secondary keratoectasias are a serious ophthalmologic disease that requires accurate and timely diagnostics to select the optimal treatment. modern methods of examining the anterior segment of the eye play an important role in diagnosing such conditions, which makes this study relevant and significant for practical ophthalmology. changes in the cornea can lead to a decrease in visual function and significant discomfort in patients. determination and effective treatment of secondary keratoectasias requires accurate and detailed diagnostics. in this context, it is important to use modern methods of examining the anterior segment of the eye, such as keratotopography, anterior optical coherence tomography and endothelial microscopy. these methods provide accurate and objective information about the structure of the cornea, its thickness and surface. with the help of such methods, it is possible to determine the presence and nature of changes, objectively assess their degree and dynamics, and predict treatment results. this is especially important when choosing the optimal treatment tactics and monitoring patients at different stages of the treatment process. the aim of the study is to evaluate the diagnostic value of modern methods of imaging the anterior segment of the eye in secondary keratoectasias, in order to improve diagnostics. material and methods the study included patients (68 patients) diagnosed with iatrogenic keratoectasia, patients were selected based on clinical manifestations and preliminary examination results. all patients underwent a complete ophthalmological examination, including vision measurement, anterior segment biomicroscopy, intraocular pressure determination, and fundus examination. modern imaging techniques were used to assess the condition of the anterior segment of the eye and diagnose keratoectasias, such as: keratotopography: allows you to evaluate superficial changes in the cornea and identify areas of ectasia. anterior segment optical coherence tomography (oct): provides a detailed image of the anterior segment structures of the eye, including the cornea, anterior chamber, and iris. corneal confocal microscopy: allows you to obtain high-quality images of corneal epithelial cells and deep corneal structures. the obtained data were analyzed using statistical methods to assess the diagnostic value of each of the anterior segment imaging methods in secondary keratoectasias. american journal of business management, economics and banking volume 28 september 2024 p a g e | 3 www.americanjournal.org results the obtained data were analyzed using statistical methods. modern methods of anterior segment imaging allowed a detailed assessment of the corneal structure, identification of changes characteristic of keratoectasias, and improved diagnostics of these conditions. at the initial consultation, patients with keratoectasias complained of various symptoms and sensations. deterioration of vision: gradual or rapid deterioration of vision, especially when using glasses or contact lenses 85%. distortion of visual images: occurrence of anomalies in the perception of images, such as double vision, blurring, or distortion of contours 87.3%. feeling of discomfort: feeling of sand in the eyes 65.5%, feeling of dryness 95%. feeling of tired eyes, when reading, working at the computer, or in low light conditions 93%. increased sensitivity of the eyes to bright light 96%. when examining the refraction of patients before refractive surgeries, mild myopia was found to be 8% (9 eyes), moderate myopia was 18% (19 eyes), high myopia was 28% (30 eyes), moderate myopic astigmatism was 17% (18 eyes), and high myopic astigmatism was 29% (31 eyes). in patients who underwent lasik surgery and photorefractive keratectomy, autorefractometry indices improved to the level of emmetropia and mild myopia. number of patients who developed secondary keratectasia: 15 patients within 1 year, 43 patients within 2 to 10 years, 10 patients from 11 to 17 years. at the initial visit, patients with keratectasia complained of: deterioration of vision in 94.1% of cases (64 eyes), redness of the eyes in 86.8% (59 eyes), allergic reactions in 33.8% (23 eyes), intolerance to spectacle correction in 88.2% (60 eyes) of cases. during visometry it was revealed that in 84.5% of cases (93 eyes) visual acuity before the operation averaged from 0.04 to 0.09. in 13.6% of cases (15 eyes) visual acuity was from 0.1 to 0.2, and only in 1.8% of cases (2 eyes) from 0.3 to 0.6. after keratorefractive surgeries, visual acuity in 40% of cases (44 eyes) improved to 0.9-1.0, in 32.7% of cases (36 eyes) to 0.7-0.8, in 15.4% of cases (17 eyes) to 0.5-0.6, and in 10% of cases (11 eyes) to 0.3-0.4. in 1.8% of cases (2 eyes) visual acuity did not change (see table 1). table 1. dynamics of visual acuity in patients with refractive anomalies before and after surgery visual acuity before surgery (n=110) after surgery (n=110) after a certain time after surgery, with the development of keratoectasia (n=110) abs. % abs. % abs. % 0,01-0,09 93 84,5 58 52,7 0,1-0,2 15 13,6 2 1,8 25 22,7 0,3-0,4 1 0,9 11 10 13 11,8 0,5-0,6 1 0,9 17 15,4 5 4,5 american journal of business management, economics and banking volume 28 september 2024 p a g e | 4 www.americanjournal.org 0,7-0,8 36 32,7 9 8,18 0,9-1,0 44 40 changes in visual acuity after a certain time after refractive surgeries from 0.01 to 0.09 were detected in 52.7% of cases, from 0.1 to 0.2 in 22.7%, from 0.3 to 0.4 in 11.8%, from 0.5 to 0.6 in 4.5%, from 0.7 to 0.8 in 8.18%. at the same time, va above 0.9 was not detected. autorefractometry in patients with keratoectasias revealed myopic refraction in 38.1% of cases, moderate myopic astigmatism in 31.8%, and high myopic astigmatism in 30% of cases. after refractive surgeries, the radius of curvature in the cornea flattens, which entails an increase in mechanical stress in the corneal stroma. these stresses can lead to the development of ectasias. table 2. keratotopography data of patients with keratectasia indicators group 1 (patients with keratoectasia) 2-group (healthy people) k1 (in diopters) 48,2±12,1 43,3±1,66 к2 (in diopters) 47,3±6,3 42,35±1,77 к max (in diopters) 49,3±4,6 43,4±1,65 thickness at thinnest point 519±132 545,93±35,9 distance from the apex to the thinnest point 0,92±0,65 0,66±0,7 minimum radius of curvature of the cornea (mm) 6,3±0,82 7,72±0,35 progression index, min 1,93±1,05 0,55±1,01 progression index, average 2,16±2,8 0,88±1,5 progression index max 2,36±1,62 0,93±1,4 as a result of the analysis of the keratotopography of patients with keratoectasia and healthy people, the indicators specified in the table above were obtained. comparing the results between the two groups, it can be noted that in the group of patients with keratoectasia, increased values of the k1, k2 and k max indicators are observed compared to healthy people. this indicates a change in the shape of the cornea and the presence of keratoectasia. also, the thickness at the thinnest point in patients was lower than in healthy people. in addition, the data show that the distance from the apex to the thinnest point in patients with keratoectasia was also greater than in healthy people. comparing the radius of curvature of the cornea, it can be noted that in patients it is minimal compared to healthy people. this indicates a convex shape of the cornea in patients with keratoectasia. finally, the analysis of the progression index showed that it is higher for the patients of the group than for healthy people in all three cases: min, average and max. this indicates the progressive nature of keratoectasia in patients. the data obtained confirm the presence of changes in the shape of the cornea in patients with keratoectasia and emphasize the importance of using keratotopography for the diagnosis and monitoring of this disease. optical coherence tomography revealed corneal thinning and ectasia (fig. 1). keratotopography data confirmed the presence of keratoectasia. the central corneal thickness (min) in the initial stages of the american journal of business management, economics and banking volume 28 september 2024 p a g e | 5 www.americanjournal.org disease was 470 ± 18.4 μm, in the advanced stage of the disease 412 ± 26.2 μm. the difference between the smallest corneal thickness and the largest thickness (min-max) was 105 ± 6.7 μm. the ratio of the average corneal thickness in the upper and lower sections, respectively (s-i) was 68 ± 4.8 μm. fig. 1. anterior optical coherence tomography of a patient with keratectasia. fig. 2. results of anterior optical coherence tomography in a patient with secondary keratoectasia. the results of the study using endothelial microscopy were clinically diverse. the most pronounced changes were observed in the corneal area involved in the ectatic process. in 15 cases, the epithelial layer had various types of epitheliopathy characterized by an increase in the number of hyperreflexive cells, their deformation and blurring of boundaries, and desquamation of epithelial cells. in 16 cases, deformation of the cell shape was determined in the basal epithelium. small zones were also american journal of business management, economics and banking volume 28 september 2024 p a g e | 6 www.americanjournal.org determined in which the basal epithelium was absent. in 1 patient with pronounced keratoconus, it was not possible to conduct an examination, since the device was unable to scan the cornea (fig. 3). fig. 3. a) the results of endothelial microscopy are normal. b) results in keratoconus. moderate polymegatism, pleomorphism and dark areas of endothelial cell loss are visible. table 3. the results of endothelial microscopy in the compared groups indicators indicators of patients with keratoectasia (n=12 eyes) healthy individuals (n=10 eyes) num 207±9,4* 281,4±14,78 cd 1189±91,9* 2863,7±54,29 avg 397±16,2* 349,8±7,1 sd 172,8±13,3* 126,7±7,9 cv 43,1±1,6* 36,3±1,75 max 1266±77,1* 819,9±48,4 min 91,3±6,3 95,5±3,5 6a 38,1±1,9* 46,5±2,2 cct 479,3±12,82* 501,8±11,8 note: * – differences relative to the control group data are significant (*p<0.05). table 3 shows the endothelial microscopy indices in the compared groups. in keratoectasia, the average loss of endothelial cells was 65% of the norm, while the average endothelial cell density (ace) was 1189±91.9 cells/mm², with the norm being 2863.7±54.29 cells/mm². this is 58.5% lower than the norm. comparative studies of the cornea using endothelial microscopy showed that the number of endothelium (num) in patients with keratoconus decreased by 26.3% compared to the control group. the number of endothelium under study per 1 mm² (cd) decreased by 11.8% compared to the control group. the coefficient of fluctuation zone of the endothelium under study (cv) was 15.7% higher in american journal of business management, economics and banking volume 28 september 2024 p a g e | 7 www.americanjournal.org patients with keratoconus than in the control group. the central corneal thickness in patients with keratoconus was 479.3±12.82 nm², which is 4.5% less than in the control group. a gradual decrease in endothelial cell density after surgery may indicate dystrophic changes in the cornea and the development of keratoectasia. conclusion secondary keratoectasia is more often observed after lasik surgery with the development of myopic refraction (38.1%), myopic astigmatism of moderate (31.8%) and high (30%) degree with flattening of the radius of curvature of the cornea (in 100% of cases). keratopography helps to accurately identify ectasias in the lower half-field with reduced pachymetric data, the presence of asymmetric areas of the cornea with protrusion in the lower section and reduced corneal thickness, protrusion on the middle periphery in the lower sections, thinning of the cornea. early use of endothelial microscopy allows assessing the condition of the cornea and taking the necessary measures at the early stages of keratoconus. based on a comparative assessment of the informativeness and sensitivity of the methods, an algorithm of diagnostic measures was created, which includes keratotopography sensitivity 94%, followed in descending order by oct sensitivity 92.9%, respectively, as well as endothelial microscopy sensitivity 92%. references 1. аветисов с.э. кератоконус: современные подходы к изучению патогенеза, диагностике, коррекции и лечению. вестник офтальмологии. 2014;130(6):37–43. 2. аверич в.в., егорова г.б. оптические аберрации глаза при кератоконусе. клиническая офтальмология. 2022;22(3):168–174. https://doi.org/10.32364/2311-7729 2022-22-3-168-174. 3. аветисов с.э., новиков и.а., патеюк л.с. кератоконус: этиологические факторы и сопутствующие проявления. вестник офтальмологии. 2014;130(4):110–116. 4. абугова т.д., морозов с.г., блосфельд в.б. новые аспекты проблемы кератоконуса. глаз. 2004;1:8–13. 5. аветисов с.э., аверич в.в., патеюк л.с. кератоконус: основные направления исследований. вестник офтальмологии. 2023;139(3.2):11–20. https://doi.org/10.17116/oftalma202313903211 6. балашевич л. и. некоторые особенности ранней диагностики кератоконуса / л. и. балашевич, а. б. качанов, с. а. никулин // american journal of business management, economics and banking volume 28 september 2024 p a g e | 8 www.americanjournal.org материалы iv евро-азиатской конференции по офтальмохирургии. разд. ii. екатеринбург, 2006. с. 34-51 7. камилов х.м., касимова м.с., хамраева г.х., исмаилова д.ф. роль эндотелиальной микроскопии роговицы при диагностике кератоэктазии. передовая офтальмология. 2023;1(1):87-91 8. егорова г.б., рогова а.я. кератоконус. методы диагностики и мониторинга. вестник офтальмологии. 2013;129(1):61– 66 9. каспарова е. а. ранняя диагностика, лазерное и хирургическое лечение кератоконуса: автореф. дис. д-ра мед. наук / е. а. каспарова. м., 2003. 27 с 10. майчук, о. и. кондакова // современные технологии катарактальной и рефракционной хирургии: материалы хi науч.-практ. конф. м., 2010. c. 266-273 11. asroui l, mehanna cj, salloum a, chalhoub rm, roberts cj, awwad st. comparison of zone averages to single point measurements of maximal curvature in keratoconus. am j ophthalmol. 2021;221(1):226-234 12. belin mw, duncan jk. keratoconus: the abcd grading system. klin monbl augenheilkd. 2016;233(6):701-707 13. belin m.w., ambrosio r.j. scheimpfl ug imaging for keratoconus and ectatic disease. indian j ophthalmol. 2013;61(8):401–406. https://doi.org/10.4103/0301-4738.116059 14. binder p.s., lindstrom r.l., stulting r.d. et al. keratoconus and corneal ectasia after lasik. journal of refractive surgery. 2005;21(6):749–752. https://doi.org/10.3928/1081 597x-20051101-15 15. duncan jk, belin mw, borgstrom m. assessing progression of keratoconus: novel tomographic determinants. eye vis (lond). 2016;3:6 16. belin mw, alizadeh r, torres-netto e, hafezi f, ambrósio r, pajic bp. determining progression in ectatic corneal disease. asia pac j ophthalmol (phila). 2020;9(6):541-548 17. pinheiro-costa j, rocha-sousa a, falcão-reis f, brandão em. increased choroidal thickness in keratoconus patients: perspectives in the disease pathophysiology. j ophthalmol. 2019;2019:245 18. gunes a, tok l, tok ö, seyrek l. the youngest patient with bilateral keratoconus caused by chronic constant eye friction. semin ophthalmol. 2015;30(5-6):454-456 19. gemonet m, charpentier p, muro f. corneal topography in clinical practice. j fr ophtalmol. 2019;42(10):e439-e451 american journal of business management, economics and banking volume 28 september 2024 p a g e | 9 www.americanjournal.org 20. gomes ja, tan d, rapuano cj, et al. global consensus on keratoconus and ectatic diseases. cornea. 2015;34(4):359-369 21. mcmahon tt, anderson rj, joslin ce, rosas g. accuracy of three corneal topographic instruments in keratoconus. optom vis sci. 2001;78(8):599-604 22. randleman jb, russell b, ward ma, thompson kp, stulting rd. risk factors and prognosis for corneal ectasia after lasik. ophthalmology. 2003;110(2):267-275 23. hamada s, barua a, caporossi a, et al. corneal crosslinking in children. in: sinjab mm, cummings a, eds. corneal collagen crosslinking. cham, switzerland: springer; 2017:229-268 24. hashemi h, atefi a, khabazkhoob mj. effect of keratoconus grades on the repeatability of keratometry readings: comparison of 5 devices. j cataract refract surg. 2015;41(5):1065-1072 25. chan sp, ang m, saad a, et al. validation of an objective screening algorithm for keratoconus and ectasia risk in asian eyes. cornea. 2015;34(9):996-1004. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 23 www.americanjournal.org introduce geometry in schools abdurashitov raxmatullo abduxamitovich xusenov zikrillo raxmatillo o'g'li adxamov xasanboy abdusalom o‘g‘li a b s t r a c t k e y w o r d s in this article, we will explore various strategies that can enhance the teaching and learning of geometry in a school mathematics course, including applied learning, visual images, problem-solving approaches, real-world applications, interactive technology, and collaborative learning. keywords: mathematics, geometry, formula, theorems, methods, shapes, angles, issues, logical thinking. geometry, formula, drawing, transporter, circle, diagram. introduction mathematical consciousness should be formed from kindergarten, the first period of school. mathematics is the basis for all exact sciences. knowing this science, a child grows up intelligent, broad-minded, able to successfully work in any area. the word mathematics is derived from the ancient greek word mathema, which means "knowledge of the sciences". what mathematics studies (object) consists of the spatial forms of what exists in matter and the quantitative relationships between them. in the current era, mathematics is conditionally divided into two. 1) elementary mathematics 2) higher mathematics. elementary mathematics is also a science with an independent meaning, which is based on elementary data from various sections of higher mathematics, namely theoretical arithmetic, number theory, higher algebra, mathematical analysis and the logic course of geometry. higher mathematics is concerned with finding mathematical laws that fully and deeply reflect the spatial forms of the real world and the quantitative relationships between them. elementary mathematics is the basis of the school mathematics course. the purpose of the school mathematics course is to give a system of mathematical knowledge in a certain way (through methodology), taking into account the psychological characteristics of students. (the term methodology is a greek word meaning "way".) mathematical methodology is one of the main sections of pedagogy and didactics, an independent discipline that studies the laws of teaching and learning mathematics in accordance with educational goals. interest in mathematics depends on the high level of teaching style and how skillfully the teaching work is built. each student should be active in the lesson, work with pleasure and use the emergence and development of a passion for knowledge as a starting point, focusing on deepening their interest in knowledge. this is especially important when it is reshaped in determining the constant interest and interest of adolescents in this or that science. at this point, math needs to be applied quickly. in the process of teaching mathematics, mathematical proverbs also serve as a factor for raising children in american journal of business management, economics and banking volume 32 january 2025 p a g e | 24 www.americanjournal.org the spirit of humanity, hard work. to teach mathematics to young people, it is necessary that the teacher is well versed in these subjects, able to skillfully use teaching methods. at the same time, a deep knowledge of pedagogy, psychology and other disciplines is also necessary. the main purpose of the training is to develop the intellectual abilities of students, independent selection and decision-making skills and acquire the necessary knowledge. this increases the mental load on the mathematics lesson and makes the student reflect on the need to increase activity and interest in the material during the lesson. therefore, new active methods and techniques of teaching are taught to activate the thinking of students, to express their independent knowledge. interest in mathematics depends on the quality of the teaching methodology and the level of educational activity. each student should work actively and with pleasure in the lesson, use the emergence and development of a passion for knowledge as a starting point, focus on deepening interest in learning. geometry, as a branch of mathematics, plays a decisive role in the school curriculum by giving students the opportunity to study the features of shapes, angles and spatial relationships. teaching geometry in a school mathematics course is necessary for the development of students ' abilities in spatial thinking, problem solving and logical thinking. geometry does not consist only in memorizing formulas and theorems; it consists in understanding the basic principles governing relationships between geometric bodies. through the use of innovative teaching techniques and approaches, teachers can create a dynamic educational environment that allows students to learn geometric concepts in a meaningful and interactive way. by incorporating these methodologies into geometry teaching, teachers can inspire students to gain a deeper understanding of the beauty and logic of geometry and equip them with important mathematical skills that can be applied outside the classroom. geometry provides students with a unique opportunity to solve creative problems, engage in critical thinking and spatial thinking, laying the foundation for their mathematical journey and instilling a lifelong love of learning. let's take a look at the methodology for teaching geometry and find out how these strategies can change the perception and interaction of students with the world of geometry.teaching geometry in the school mathematics curriculum is a key aspect of students ' development of spatial thinking, problem solving, and logical thinking skills. geometry, as a branch of mathematics, provides students with a unique opportunity to study the properties of shapes, angles and spatial relationships, helping them to understand the world around them more deeply. one of the most effective methods of teaching geometry is practical training and manipulations. providing students with geometric tools such as pliers, transporters, circulars, geometric bodies allows them to explore geometric concepts in a clear and interactive way. activities such as building shapes, measuring angles, and studying symmetry can help students understand geometric principles clearly. geometry is a visual subject, and the use of visual images is the key to helping students understand abstract geometric concepts. teachers can use diagrams, tables, and geometric pictures to describe geometric properties and relationships. visual aids help students visualize geometric concepts, making them more accessible and understandable. geometry helps well in solving problems because students are presented with geometric issues that require critical thinking and logical reasoning to solve. encouraging students to take a systematic approach to geometric issues, identify patterns, and apply geometric principles in finding solutions can help develop their problem solving skills and mathematical thinking. linking geometric concepts with real-world applications can help readers see the importance of geometry in everyday life. teachers can include examples of geometric shapes and features found in architecture, art, nature, and technology to show the practical importance of geometry. this contextualization helps students assess the american journal of business management, economics and banking volume 32 january 2025 p a g e | 25 www.americanjournal.org usefulness of extracurricular geometry. integrating technology tools such as interactive geometry programs and online resources can enhance the learning experience for students. virtual manipulators, interactive simulations and geometry applications give students the opportunity to explore geometric concepts in a dynamic and interesting way. technology can facilitate visualization, experimentation, and the study of geometric ideas. encouraging collaborative learning activities such as group projects, peer-to-peer discussions, and problem-solving tasks creates a supportive learning environment where students can engage in geometry together. collaborative learning helps with communication, teamwork, and peer learning, enhancing students ' understanding of geometric concepts through collaborative research and discussion. conclusion: in conclusion, it can be said that the methodology for teaching geometry in a school mathematics course should give priority to practical education, visual images, methods of solving issues, real-life application, interactive technology and collaborative teaching. by applying these effective strategies, teachers can create a dynamic and engaging learning environment that allows students to develop a deep understanding of geometry and develop important mathematical skills useful in their academic and future activities. references 1.azamov a. khaydarov b., kuchkarov a., sarikov ye., saghdiev u. geometry. schools of general secondary education are textbooks for grade 7. t.: "newoligrafservis", 2017. 2.a. a. rahimqoriev" geometry " is a textbook for the 8th grade of schools of general secondary education. tashkent."yangiyo" l polygraph service"2010 3.haydarov b., sarikov ye., rams a. geometry. grade 9-t.: "national encyclopedia of uzbekistan", 2014. 4.pavlova l.v. competence problems in geometry. pskov 2014 5. i.israilov, i.pashaev geometry. textbook. t.: teacher, 2011. 6. yunusova d.i. mathematics on the basis of educational technologies. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 88 www.americanjournal.org evaluating the reality of manufacturing strategies guide / exploratory study of the opinions of a sample of administrative leaders working in the samarra pharmaceutical factory ali muhammad huwayd khater assistant lecturer, college of administration and economics, tikrit university cade.2021.45@st.tu.edu.iq ahmed badran abdel hussein assistant lecturer, general directorate of kirkuk education cade.2021.30@st.tu.edu.iq a b s t r a c t k e y w o r d s the research aims to evaluate the reality of applying pilot manufacturing strategies in the samarra pharmaceutical factory, as the descriptive analytical approach was relied upon in studying the problem of the study. the two researchers measured the laboratory’s application of the six pilot manufacturing strategies, which are (comprehensive quality management, comprehensive productive maintenance, continuous improvement, and production in... limited time, cellular manufacturing, rapid change) through a questionnaire form through which data was collected from the researched sample consisting of (60) individuals from various administrative levels. the questionnaire form was distributed to the members of the researched sample and was retrieved from (44) forms valid for statistical analysis. with a percentage of (73.3) in light of this, the study reached a set of conclusions, perhaps the most prominent of which is that the management of the samarra pharmaceuticals factory has a vision of all guided manufacturing strategies, especially the comprehensive productive maintenance strategy, but it needs to show more attention to the comprehensive quality management strategy. in light of the research conclusions, the researchers presented a set of perhaps the most prominent recommendations are for the laboratory management to maintain the application of the six guiding manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, on-time production, cellular manufacturing, rapid change) in its production processes to american journal of business management, economics and banking volume 20 january, 2024 p a g e | 89 www.americanjournal.org provide products and services that meet the needs of patients, especially at this time when the iraqi environment witnesses a scarcity of laboratories that produce medical products. in addition, investing in this strategy is one of the means that increases the efficiency of production processes and reduces waste and loss of resources, because these strategies are compatible with each other and do not contradict each other when applied by administrative leaders. introduction the rapid changes in the business environment resulting from various factors such as economic and technological factors and competition between organizations have led to an increase in the efforts of organizations, especially productive ones, to adopt various mechanisms that enable them to confront various environmental challenges to ensure continued competition and survival in the labor market. as a result, productive organizations seek to acquire competitive advantages and develop them in line with the actual needs of consumers, because these advantages are the characteristic that enables organizations to achieve superiority over competitors in the work environment, which has led to an attempt by productive organizations to adopt new systems, manufacturing methods, and strategic approaches that reduce... waste, production cycle time, and cost reduction, which enhances the sustainability of these advantages. perhaps one of these systems is the guided manufacturing system, which refers to the methods and tools that organizations adopt to ensure that demand is met quickly and without waste. this system relies on a set of strategies to identify forms of waste and work to eliminate them. these strategies (total quality management, total quality philosophy, comprehensive productive maintenance, continuous improvement, just-in-time production, cellular manufacturing). in light of this, this research gains its importance from the importance of these strategies, which production organizations rely on in trying to enhance competitive advantages, and thus aims the current study aims to evaluate the reality of guided manufacturing strategies in the kirkuk cement factory and present a number of conclusions and recommendations in light of the results it reached. in order to achieve this, the study was divided into four axes. the first axis dealt with the methodological framework, while the second axis dealt with the theoretical framework, and the third axis was devoted to the practical aspect. for the research, the last topic was devoted to the most important conclusions and recommendations that were reached the first axis methodological framework the methodological framework of the research addresses the research problem, its importance and objectives, as well as its hypothetical plan and hypotheses emerging from it, and a statement of the research methodology and data collection methods, as follows: first: the research problem given the intensity of competition in the work environment and the efforts of productive organizations to meet the needs and desires of their customers on time and at a lower production cost to increase profits and enhance their competitive position, applying productive strategies that ensure american journal of business management, economics and banking volume 20 january, 2024 p a g e | 90 www.americanjournal.org the organizations’ smooth work, accuracy in the delivery date, and reducing waste and loss, which increases the financial burdens borne by the organizations, takes it is of great importance in our current era as a result of the multiple challenges it faces, and among these strategies that may be relied upon are rational manufacturing strategies that may contribute to reducing waste and costs incurred by organizations. accordingly, the research problem emerges in two questions: 1. what is the reality of applying rational manufacturing strategies in the researched organization 2. what is the level of importance of each guided manufacturing strategy in the researched organization? 2. is there a significant correlation between rational manufacturing strategies in the researched organization? second: the importance of research the importance of the current research lies in providing the researched organization with a study that evaluates its reality in applying guided manufacturing strategies in its production processes, as well as providing a set of recommendations in light of the results it reaches based on scientific and methodological foundations. moreover, this research opens horizons for carrying out other studies on the reality of applying guided manufacturing strategies in other industrial organizations third: research objectives in light of the above problem and the importance of the research, the objectives of the research lie in the following 1. identify the reality of applying rational manufacturing strategies in the researched organization 2. identify the relative importance of each of the guiding industry strategies in the researched organization 3. identifying the existence of a significant correlation in the researched organization 4. providing a set of recommendations to the researched organization based on the results reached fourth: hypothetical research plan total quality management guided manufactu ring strategies comprehen sive productive maintenanc e the specified time cellular manufactur ing continuous improvement american journal of business management, economics and banking volume 20 january, 2024 p a g e | 91 www.americanjournal.org fifth: research hypotheses based on the above research problem and objectives, the researchers assume the following two hypotheses the first hypothesis: the researched organization applies guided manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, just-in-time production, cellular manufacturing) in its operations. the second hypothesis: there is a significant correlation between rational manufacturing strategies in the researched organization sixth: research methodology the researchers relied on the descriptive analytical method in their research, both theoretical and practical, because it is the most appropriate in achieving the purpose of the current study because it presents the theoretical material in a scientific way that achieves the research’s objectives, in addition to benefiting from it in analyzing the questionnaire forms distributed to the members of the study sample that it adopted in order to reach the results. seventh: description and diagnosis of the study population and sample firstly. research population and sample the field of research represented the iraqi industrial sector, while the research community included all administrative leaders working in the samarra pharmaceutical factory, while the chosen purposive sample was limited to the number of questionnaires returned from managers who had an interest in manufacturing strategies, as 60 questionnaires were distributed, of which 44 forms were recovered with a recovery rate. (73.3%), and table (1) shows the number of questionnaires distributed and returned. table (1): questionnaire forms distributed and returned statement distributed forms recovered forms suitable for analysis percentage of returned forms the research sample 60 44 73.3 % secondly .measuring variables a questionnaire form was formulated to measure the only variable for the research, which is the guided manufacturing strategies, which includes six strategies (total quality management , comprehensive productive maintenance, continuous improvement, on-time production ,cellular manufacturing, and rapid change) that represent the dimensions of this variable, and it was measured through 24 statements distributed by 4 statements for each of these dimensions. the questionnaire form included in a special section the personal information of the sample members that express their demographic characteristics and three pieces of information: (age, years of service, administrative position), and table (2) shows the structure of the questionnaire. questionnaire american journal of business management, economics and banking volume 20 january, 2024 p a g e | 92 www.americanjournal.org table (2): details of the questionnaire form information interviewer statement dimensions code the number sequence the hub first : information demographic the age a years the service y position administrative j the hub second : variable search strategies manufacturing leader first : management the quality overall xx1 4 1-4 second : maintenance the producer overall xx2 4 5-8 third : improvement continuous xx3 4 9-12 fourth : production in the time specified xx4 4 13-16 fifth : manufacturing cellular xx5 4 17-20 sixth : change the fast one xx6 4 21-24 total x 24 1-24 source: the table was prepared by the researchers. a five-point likert scale was used to transform qualitative data into quantitative ones. the value 1 was given to the answer ( strongly disagree), the value 2 was given to the answer (disagree), the value 3 was given to the answer (neutral), the value 4 was given to the answer ( agreed), and the value 5 was given to the answer (strongly agree . .) third. demographic information for the research sample the research included three personal information that determine the demographic characteristics of the sample members, as shown in table (3 .) table (3): description of the sample members according to demographic characteristics category the number the ratio % the age from 30 years so less 8 18.2 from 31-40 years old 13 29.5 from 41-50 years old 14 31.8 from 51 years old and more 9 20.5 years of service from 1-10 years 18 40.9 from 11-20 years 12 27.3 from 21-30 years old 10 22.7 from 31 years and more 4 9.1 administrative position boss lonliness 13 29.5 boss section 19 43.2 boss to divide 7 15.9 associate boss 2 4.5 boss 3 6.8 source: the table was prepared by the researchers according to the spss program . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 93 www.americanjournal.org it is noted from table (3) that: 1 . in terms of age :the number of individuals reached ... 2 . in terms of years of service : .... 3 . in terms of administrative position :........ figure (2) shows the distribution of sample members according to demographic characteristics figure (2): distribution of sample members according to demographic characteristics source: the figure was prepared by the researchers the second axis theoretical framework first: an overview of the concept of rational manufacturing and its strategies: before the two researchers delve into the context of the concept of rational manufacturing strategies, it is necessary to give an overview of this concept, as john krafcik, a researcher in the international motor show (imtv) program, is the first to invent the term rational manufacturing and called it rational because it uses the least amount of everything, which reduces... of the manpower needed for production, reducing inventory by half, reducing maintenance, preparation and preparation times, as well as reducing or eliminating all types of waste and losses (al-mashharawi, 2015: 43) (shaheen, 2018: 14) defined rational manufacturing as the philosophy of rationalizing the use of resources, eliminating all forms of waste and loss, and providing customers with the best possible value by maintaining operational improvements derived from rational manufacturing policy, continuous development in operational performance, and focusing on a culture of quality in all operations. in light of this, stevenson (2021: 538) believes that rational manufacturing depends on demand, which means that materials (primary, semi-finished, raw) are withdrawn directly to match the demand instead of sending them to the production process without any match with the demand, which reduces preparation and handling costs. reducing inventory to a minimum, standardizing and simplifying 0.0% 50.0% 18.2% 29.5% 31.8% 20.5% the age 0.0% 50.0% 40.9% 27.3% 22.7% 9.1% years of service 0.0% 50.0% 29.5% 43.2% 15.9% 4.5% 6.8% administrative position american journal of business management, economics and banking volume 20 january, 2024 p a g e | 94 www.americanjournal.org necessary activities, as well as reducing disturbances faced by the production process, reducing space needs, and enhancing the ability to discover problems. many economic feasibility studies have confirmed that bringing machines and workers closer together in the workplace increases opportunities for socialization, communication, and cooperation. accordingly, rational manufacturing depends on a set of strategies, which can be generally defined by (al-bahar, 2020: 31) as a set of tools and strategies that work to achieve a smooth flow of resources through the various stages of production, which achieves high flexibility in operations and eliminates all types of waste. damage, losses, and the exclusion of unnecessary activities, which improves operational operations in general, while al-khadrawi (2021:369) defines it as strategies that work to detect all types, classifications and forms of waste, damage and losses and work to eliminate or eliminate them. in this regard, it must be noted that there are many guiding manufacturing strategies, including (total quality management, total quality philosophy, cellular manufacturing, and specific time). (continuous improvement). based on the above, these strategies can be defined in the field under study as the totality of the activities and operations carried out by the factory that enable it to introduce improvements to the stages of production processes and reduce all forms of waste and loss of resources, which reduces financial burdens and speeds up the meeting of customer requirements. third: objectives of guided manufacturing strategies: the main goal of rational manufacturing is to form an industrial organization capable of producing products that meet the desires of customers at the lowest possible cost and with the highest possible quality, while taking into account environmental aspects by relying on a set of strategies. accordingly, these strategies have a set of goals that they try to achieve, which were mentioned by many researchers, such as: (al-mashharawi, 43:2015) (schroeder&goldstein,2016:466) (alkhadrawi, 367:2021) (al-asadi, 2020:18) (azaizia, 2019:591) (elgool,etal,2020:20) (safia, 2019:20) the following is its explanation: 1. continuous development and improvement of the various stages of production and focus on flexibility in processes and equipment, which enables the organization to diversify its products in response to market requirements and trends. 2. reducing all types of costs, such as transportation, storage, and spoilage costs, which increases the company’s industrial profits and increases rates of return. 3. reducing and detecting waste by achieving an approach (zero defect, zero malfunction, zero accident) 4. taking into account environmental aspects by providing environmentally friendly products that meet the desires and requirements of the modern customer, ensuring their loyalty and building longterm relationships with them. 5. reducing the total production time, improving the performance of workers and raising their efficiency. 6. accuracy in the dates of delivering products to customers or beneficiaries, as it depends on the withdrawal system, which gives the facility a competitive advantage. 7. arranging machines, equipment, workers, and work spaces in a way that makes the flow of materials smooth between the different production units. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 95 www.americanjournal.org 8. paying attention to the human element as one of the basic elements in solving problems and continuous improvement. 9. raising the level of workers in all psychological, skill, mental, social and physical aspects. 10. reducing all types of inventory (in-progress inventory, finished materials inventory, raw materials inventory), considering that inventory is the cause of most problems in industrial companies. fourth, guided manufacturing strategies: we have previously mentioned these strategies to enable the company to recognize the classifications and forms of waste and work to eliminate and eliminate them. below is a brief explanation of each strategy: 1. total quality management: researchers have many opinions regarding the concept of total quality management, and (radwan 2013: 25) indicates that it is a system that includes integrated intellectual philosophies, statistical tools, and administrative processes to achieve customer and employee satisfaction alike, while it is defined by (al-jarjari, 2014: 265) chahal, etal, 2017: 279) (majoud, 2020: 73) it is an administrative philosophy that focuses on the following principles: a. top management support: the success of implementing the total quality management philosophy in the organization depends on the support and commitment of top management. b. worker participation: by giving workers more authority in their field of work and urging them to participate actively in solving problems related to quality, it gives employees motivation to provide the best in their field of work and get rid of unnecessary activities or that do not add value to the company. c. continuous improvement: improvement occurs gradually (step by step). dr.. focus on the customer: one of the most important considerations that must be taken when producing a product or providing a service is how the customer judges the good or bad good or service. in light of this, it can be defined procedurally as the administrative process through which the factory management seeks to develop its production processes to satisfy the customer’s needs and desires without affecting the job satisfaction of its employees. 2. comprehensive productive maintenance: many researchers have dealt with the concept of comprehensive productive maintenance from different points of view. (al-obaidi, 2013: 114) sees it as a group of workers who meet weekly according to a pre-determined schedule to discuss the problems facing the progress of the production process and try to find the best solutions to them and present them to them. higher management while (saleh and al-dawai, 2018: 394) defined it as a strategy to improve the effectiveness of machines, equipment, and processes, and it includes all sectors, including manufacturing, planning, and maintenance, and works to eliminate malfunctions in machines and equipment through preventive maintenance by the operator, which leads to prolonging their life. equipment and reduce the interruptions facing the production process. in this regard, (al-bahar, 2020: 64) believes that comprehensive productive maintenance achieves many benefits reducing maintenance and production costs and improving the quality of the outputs of the production process. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 96 www.americanjournal.org ensuring continuity of production operations without interruptions. comprehensive productive maintenance aims to maintain the production system as a whole in good condition in order to avoid malfunctions and interruptions, maintain high quality, and avoid missing delivery dates. according to stevenson (2021: 647), this maintenance is divided into two types: the first: is preventive maintenance, which provides for reducing errors through a program of lubrication, cleaning, inspection, and replacement of worn-out parts. the second: it is remedial maintenance, which deals with errors or malfunctions as soon as they occur in light of this, comprehensive productive maintenance can be defined procedurally as the totality of the procedures undertaken by the factory to avoid interruptions in production processes, ensure the flow of work, avoid errors before they occur, and deal with them immediately if they occur. 3. continuous improvement: continuous improvement, or what is called (kaizen) according to the japanese language, is a management philosophy whose historical roots go back to japan. many industrial companies, such as toyota and mistiboshi, have relied on it for the purpose of reducing costs in production and achieving competitive advantages by making continuous and gradual improvements in the various customer activities that the production units go through, as well as eliminating waste, damage, and deletion of activities that do not add value or are unnecessary, which contribute to achieving the desired goals of the industrial company (khanjar and yaqoub, 2018: 38), while (ismail, 2019: 721) defined it as the process through which activities and processes related to providing a product or service are improved and developed and ensured that they are compatible with the needs, desires and requirements of customers, as well as reducing costs to a minimum without compromising quality, it is defined (wael, 2020: 22) as the continuous improvement of machines, materials, procedures and individuals and that the basic idea of continuous improvement is it is improving operations through the participation of working individuals in developing ideas and suggestions in the company. in light of the above, krajewski (2020:168) believes that excess capacity or inventory hides the basic problems that occur in the processes that produce a product or service, as waste-free systems provide a mechanism for management to detect problems through regular reduction of inventory or energy levels, and it can be likened to excess energy or storage on the surface of the sea. as for the problems that occur in operations, they are represented by rocks at the bottom of the sea. when the water surface is high, the boat passes with ease. however, if water levels are low, the boat will collide with rocks. through lean systems, workers, engineers, technicians, and analysts will apply methods for continuous improvement. to demolish exposed rocks allowing a smooth flow of resources in light of the above, continuous improvement can be defined procedurally as the philosophy that the factory relies on to reduce costs to the minimum possible by benefiting from the opinions of employees in developing and improving production processes. 4.the specified time: just-in-time (jit) is one of the most common systems that includes the general elements of lean systems. according to taiichi ohno, one of the early pioneers of toyota corporation, the just-intime (jit) philosophy is simple but powerful eliminate waste by reducing excess capacity or inventory and eliminating unnecessary activities (krajewski,2016:230). he defined it (mohamed, 2016: 19) as a method or philosophy of production based on reducing inventory and waiting time, as activities that do not add value to the organization, as the semiamerican journal of business management, economics and banking volume 20 january, 2024 p a g e | 97 www.americanjournal.org manufactured parts and raw materials allocated for the production process are received in a timely manner, as well as the production units are delivered directly to the delivery centers, which results in this reduces storage costs, which include insurance, ventilation, lighting, and damage costs, as well as reducing the costs of handling materials and semi-manufactured parts, and ensuring that products are delivered to customers on time, which gives the company a competitive advantage (precedence of delivery), which ensures customer loyalty. heizer, etal, 2020: 679)) a technology based on eliminating all types of waste by reducing inventory to a minimum and improving productivity. the production system works on time according to the withdrawal system by producing materials according to demand. when the company receives an order, it determines the materials needed to produce the order is sent directly to the work site to be converted into finished products that are delivered directly to customers. however, in the event that the materials needed for production do not reach the work site, the guided production system takes care of identifying the problem. this is the strong aspect of this system, as it focuses on solving problems, eliminating waste, and reducing inventory to minimum just-in-time manufacturing brings many benefits, the most important of which is stevenson (2020: 613). eliminate all types of waste reducing costs due to its focus on reducing inventory and eliminating all types of waste achieving high levels of quality motivated by customer focus high flexibility in operations, which increases the company’s ability to respond to market trends and requirements improving productivity by eliminating unnecessary activities or that do not add value to the company in light of the above, just-in-time manufacturing can be defined procedurally. the factory adopts a production philosophy that focuses on reducing all forms of product waste and delivering raw materials to delivery centers immediately upon receipt in order to quickly produce products and deliver them to customers at the time specified by the factory. 5. cellular manufacturing: it is the physical arrangement of production facilities, facilities, machines, and equipment that produce the different parts of the product. this arrangement is in the shape of the letter u, which reduces time and movement and allows a smooth flow of the various production elements, which reduces waiting times, reduces inventory between operations, and makes better use of space. improving production and flexibility (ibrahim, 2019: 366). cellular manufacturing achieves many benefits, the most important of which is improving productivity, reducing maintenance and operating costs, reducing in-process inventory costs, making better use of resources (machinery, equipment, and workers), achieving high levels of product quality, and reducing setup times. and numbers (abdul razzaq et al., 2021: 137) cellular manufacturing is one of the hybrid systems that operates in the form of work cells. the cell is an expression of a combination of machines, equipment and workers formed to produce a family of products. the cell is shaped like the letter (u) or (c) through which one piece or a group of parts (product families) flows to production and there is a family relationship between the producing units. the individuals working in the cell are characterized by flexibility and high speed, and the cell’s outputs are easily changed by changing the number of machines and workers for the purpose american journal of business management, economics and banking volume 20 january, 2024 p a g e | 98 www.americanjournal.org of achieving the highest possible efficiency in the outputs of the production process (al-tamimi and saad, 2022: 176). therefore, cellular manufacturing can be defined procedurally in the researched laboratory as the laboratory presenting a group of similar products by placing the workstations close together. rapid change: refers to the speed at which molds are replaced in a matter of minutes, and its goal is to reduce preparation and preparation time (mazhar and azab, 2011: 230). al-khadrawi adds that rapid change is a fundamental basis for rational manufacturing, because rational manufacturing aims to reduce of the stops or malfunctions that occur due to the preparation and configuration of machines or a change in the model or composition of the product the third section: the field aspect of the research in this study, the measurement tool, represented by the questionnaire form, will be tested in terms of its validity and reliability, based on apparent validity measures and through the cronbach’s alpha coefficient for internal consistency, as well as testing the normal distribution of the data, and then describing the study variables, diagnosing them, and testing the formulated hypotheses. fourthly. test the search tool the researchers relied on the validity and reliability test on the apparent validity and cronbach’s alpha coefficient for internal consistency, as follows: a. apparent honesty: the initial model of the questionnaire was presented to a number of specialized arbitrators at the college of administration and economics/tikrit university, the number of whom was (one) arbitrators. some sentences were trimmed and others were deleted and replaced according to the opinions and instructions given to produce the form in its final and approved form. b. validity of the scale: self-validity was adopted in expressing the validity of the scale and was calculated by finding the square root of the reliability coefficient cronbach's alpha, as table (4) shows that the value ranged between (0.854-0.972), which is a high value and which reflects an acceptable representation of the questionnaire items. table (4): the value of cronbach’s alpha coefficients and validity for the research variables variable cronbach's alpha coefficient honesty coefficient first: total quality management 0.759 0.871 comprehensive productivesecond: maintenance 0.729 0.854 third: continuous improvement 0.755 0.869 fourth :production in the time specified 0.757 0.870 fifth: cellular manufacturing 0.792 0.890 sixth: rapid change 0.903 0.950 manufacturing strategiesvariable: guide 0.945 0.972 on the results of statistical analysisbased source: table prepared by the researcher . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 99 www.americanjournal.org c. reliability of the questionnaire: it is clear from table (4) that the value of cronbach’s alpha ranged between (0.729-0.945), which expresses the reliability of the questionnaire. these values are considered acceptable in a way that reflects the availability of reliability and confidence in the research variables and confirms its validity for the following stages of analysis. therefore, this indicates the stability of the questionnaire in measurement and gives researchers the right to adopt the results and circulate them to the research community. fifth. and describe and diagnose phrases and search variables the researcher conducted a descriptive analysis of the data using the statistical program (spss ver. 22), with the aim of identifying the values of the arithmetic means, standard deviations, and the highest and lowest values that explain the characteristics of the search terms according to the opinions of the respondents. the results were as shown in table (6). table (6): results of the descriptive analysis of the opinions of the respondents t ferries arithmetic mean standard deviation higher value minimum value coefficient of variation relative importance % 1 availability quantity enough from resources necessary to develop its operations 3.500 0.876 1.0 5.0 25.0% 70.0% 2 granted staff more from authority to participate in solution the problems 3.227 0.961 1.0 5.0 29.8% 64.5% 3 get up by conducting improvements on its products with a picture gradual 3.773 0.803 2.0 5.0 21.3% 75.5% 4 take considering opinions customers when development its products 3.341 0.888 2.0 5.0 26.6% 66.8% 5 get up i work meetings patrol to discuss the problems 3.727 0.817 2.0 5.0 21.9% 74.5% 6 get up with maintenance preventive for equipment to avoid pauses in the operation productivity 3.682 0.883 2.0 5.0 24.0% 73.6% 7 deal with mistakes and holidays immediately its occurrence 4.068 0.818 2.0 5.0 20.1% 81.4% 8 availability all hardware to conduct operations maintenance 3.682 0.800 2.0 5.0 21.7% 73.6% 9 get up evolving its products with what corresponds with needs customers 3.909 0.709 2.0 5.0 18.1% 78.2% 10 working on to improve its operations from during urge individuals on subtract ideas new 3.477 0.952 1.0 5.0 27.4% 69.5% 11 you try discount costs to limit the lowest without prejudice with quality 3.841 0.888 2.0 5.0 23.1% 76.8% 12 working on finding methods challenge from waste in its operations 3.727 0.973 1.0 5.0 26.1% 74.5% american journal of business management, economics and banking volume 20 january, 2024 p a g e | 100 www.americanjournal.org 13 get up by getting rid from all shapes waste from during discount inventory to limit lowest 3.477 0.876 1.0 5.0 25.2% 69.5% 14 to receive order directly to location the job to be done convert it to products complete made 3.955 0.714 2.0 5.0 18.1% 79.1% 15 get rid of it from activities not necessary that no she adds value for the laboratory 3.864 0.905 1.0 5.0 23.4% 77.3% 16 she has ability on response for requirements market from during flexibility in its operations 3.523 0.952 1.0 5.0 27.0% 70.5% 17 get up in order machines in a way allow with a flow smooth for elements production 3.682 0.800 1.0 5.0 21.7% 73.6% 18 get up orderin machines in a way decrease from costs materials inventory from materials half manufactured 3.477 0.821 1.0 5.0 23.6% 69.5% 19 reduce waste in its operations from during optimization continuous for stages the operation productivity 3.682 0.909 1.0 5.0 24.7% 73.6% 20 get up with training staff on use techniques production modern 3.614 1.039 1.0 5.0 28.8% 72.3% 21 possess resources mankind eligible to initialize machines quickly to avoid waste by time 3.500 1.000 2.0 5.0 28.6% 70.0% 22 get up by changing templates in shape decrease from times switch 3.614 0.813 2.0 5.0 22.5% 72.3% 23 working on ranking materials in shape that decrease from time handling 3.591 0.972 1.0 5.0 27.1% 71.8% 24 make sure from safety tools continuously replaceto parts not the sound one 3.750 1.081 1.0 5.0 28.8% 75.0% source: the table was prepared by the researchers according to the spss program . fotable )6( shows the descriptive analysis of all the phrases table (6) shows the descriptive analysis of all the phrases of the guiding manufacturing strategies variable (1-24). these phrases were diagnosed for the purpose of describing them by adopting a number of measures of central tendency. it is noted that there is a large agreement among the respondents regarding all the phrases of the questionnaire, which gives a preliminary indication of the the importance of applying guided manufacturing strategies in the samarra pharmaceutical factory under investigation. it is noted that phrase no. (7) expressed (dealing with errors and malfunctions as soon as they occur) recorded the highest level of agreement, and it belongs to the second dimension (comprehensive productive maintenance) of the variable of guided manufacturing strategies. while statement no. (2) expressed (gives workers more authority to participate in solving problems) recorded the lowest level of agreement, and it belongs to the first dimension (total quality management) of the guiding manufacturing strategies variable. it is also noted that there is great consistency and a decrease in the dispersion of opinions. within all expressions, it is indicative of the value of the low standard american journal of business management, economics and banking volume 20 january, 2024 p a g e | 101 www.americanjournal.org deviation, as well as the decrease in the coefficient of variation to less than the standard value of (50%). this proves the truth and reality of the agreement confirmed by the arithmetic mean. while table (7) shows the characteristics of the research variable and dimensions according to the opinions of the respondents, through the values of the arithmetic means, standard deviations, and the highest and lowest values. table (7): results of the descriptive analysis of the opinions of the respondents variables arithmetic mean standard deviation higher value minimum value coefficient of variation relative importance % first: total quality management 3.460 0.673 1.5 4.5 19.5% 69.2% second: comprehensive productive maintenance 3.790 0.617 2.5 5.0 16.3% 75.8% third: continuous improvement 3.739 0.673 2.0 5.0 18.0% 74.8% fourth :production in the time specified 3.705 0.659 2.3 5.0 17.8% 74.1% fifth: cellular manufacturing 3.614 0.704 1.0 5.0 19.5% 72.3% sixth: rapid change 3.614 0.855 1.5 5.0 23.7% 72.3% variable: guide manufacturing strategies 3.653 0.592 2.2 4.8 16.2% 73.1% source: the table was prepared by the researchers according to the spss program . table (7) shows a large agreement on the importance of applying the six guided manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, just-in-time production, cellular manufacturing, rapid change) in terms of the arithmetic mean of (3.653) and the relative importance of (73.1%) while the low value of the standard deviation and coefficient of variation confirms the existence of consistency in the application of these strategies and the lack of dispersion according to the perception of those investigated in the samarra pharmaceuticals laboratory, the dimension () recorded the highest level of agreement........ sixthly. normal distribution test for the purpose of the type of statistical tools that can be adopted in testing research hypotheses, whether they are parametric or non-parametric tools, the two researchers resorted to testing the normal distribution of data in order to measure the fairness of this data, as normally distributed data allows researchers to adopt parametric tools in testing research hypotheses. using both the skewness coefficient and the kurtosis coefficient to achieve this purpose, as the closer the skewness coefficient values are between (1 to -1) and the kurtosis coefficient values are between (3 to -3), this indicates a normal distribution of the data. table (8) notes that all skewness and kurtosis coefficients for the research variables and dimensions fall within the permitted limits, so the data follows a normal distribution and then parametric statistical analysis tools and methods can be used. table )8(: results of the normal distribution test american journal of business management, economics and banking volume 20 january, 2024 p a g e | 102 www.americanjournal.org variables skewness kurtosis first: total quality management -0.885 0.283 second: comprehensive productive maintenance 0.061 -0.552 third: continuous improvement -0.189 0.361 fourth :production in the time specified -0.169 -0.203 manufacturingfifth: cellular -0.820 2.244 sixth: rapid change -0.459 0.159 variable: guide manufacturing strategies -0.266 -0.140 source: the table was prepared by the researchers according to the spss program . 3/8 .hypothesis testing the research is based on two hypotheses, as described previously within the methodology. below are the results of the tests of those hypotheses and a discussion of their results: the first hypothesis: the researched organization applies guided manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, just-in-time production, cellular manufacturing, rapid change) in its operations. for the purpose of evaluating the reality of applying the six guiding manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, just-in-time production, cellular manufacturing, and rapid change) from the perspective of the research sample members, the one sample t test was used, and the table shows ( 9) the following are the results of the t-test: table (9): t-test values for the means of dimensions of guided manufacturing strategies dimensions value t probability sig differences first: total quality management 4.534 0.000 moral second: comprehensive productive maintenance 8.491 0.000 moral third: continuous improvement 7.277 0.000 moral fourth :production in the time specified 7.095 0.000 moral fifth: cellular manufacturing 5.782 0.000 moral sixth: rapid change 4.761 0.000 moral df (43) p ≤ 0.05 n=44 source: the table was prepared by the researchers according to the spss program . it is noted from table (9) that there is significant agreement between the means of the sample members regarding the evaluation of the reality of applying the six rationalized manufacturing american journal of business management, economics and banking volume 20 january, 2024 p a g e | 103 www.americanjournal.org strategies in the samarra pharmaceutical factory, as indicated by the significant (t) value at a significance level less than (0.05), so the first hypothesis is accepted. the second hypothesis: there is a significant correlation between rational manufacturing strategies in the researched organization. the relationships between the dimensions of the six guiding manufacturing strategies variable were tested using the pearson correlation coefficient in order to determine the level, strength and direction of the relationship between these six dimensions (total quality management, comprehensive productive maintenance, continuous improvement, on-time production, cellular manufacturing, change). rapid) all, and table (10) shows the values of the correlation coefficients for the variables and dimensions of the study. (: values of correlation coefficients for the variables and dimensions of the study10 table ) variables and dimensions xx1 xx2 xx3 xx4 xx5 xx6 xx1 pearson 1 0.546 ** .627 ** .625 ** .727 ** .553 ** (sig ) .000 .000 .000 .000 .000 xx2 pearson 1 .711 ** .645 ** .592 ** .658 ** (sig ) .000 .000 .000 .000 xx3 pearson 1 .680 ** .619 ** .684 ** (sig ) .000 .000 .000 xx4 pearson 1 0.789 ** 0.766 ** (sig ) .000 .000 xx5 pearson 1 0.729 ** (sig ) .000 xx6 pearson 1 (sig ) source: the table was prepared by the researchers according to the spss program . **indicates that the correlation is significant at )1%(, * indicates that the correlation is )5%( significant at it is noted from table (10) that there is a significant positive correlation between the six dimensions of rationalized manufacturing strategies at a level of statistical significance less than (5%). it is noted that the strongest correlation was between just-in-time production and cellular manufacturing with a correlation coefficient of (0.789**), followed by the relationship between on-time production and rapid change with a correlation coefficient of (0.766**), then the relationship between cellular manufacturing and rapid change with a correlation coefficient of (0.729**), while the lowest relationship was between total quality management and comprehensive productive maintenance with a correlation coefficient of (0.546**), based on the above, the second hypothesis of the research is accepted. conclusions and recommendations first: descriptive conclusions the management of the samarra pharmaceuticals factory has a vision of all the guided manufacturing strategies, especially the comprehensive productive maintenance strategy, but it needs to show more attention to the comprehensive quality management strategy. at the level of each of the guided manufacturing strategies, the researchers adopt the following conclusions: american journal of business management, economics and banking volume 20 january, 2024 p a g e | 104 www.americanjournal.org 1. with regard to the comprehensive quality management strategy, the factory management invests in this strategy, especially by gradually introducing improvements to its products. 2. with regard to the comprehensive productive maintenance strategy, the factory management invests in this strategy, especially by dealing with errors as soon as they occur, and this positively affects its work, but it needs to give workers more authority to participate in solving problems. 3. with regard to the continuous improvement strategy, the factory management is investing in this strategy, especially by developing its products in accordance with the needs of customers, but it needs to introduce more improvements to its operations by urging individuals to put forward new ideas. 4. with regard to the just-in-time production strategy, the factory management invests in this strategy, especially by delivering the order directly to the work site to be converted into finished products, but it needs to show more interest in reducing inventory to the minimum to get rid of all forms of waste. 5. with regard to the cellular manufacturing strategy, the factory management is investing in this strategy, especially by arranging the machines in a way that allows a smooth flow of production elements, as well as reducing waste in its operations through continuous improvement of the stages of the production process. 6. with regard to the rapid change strategy, the laboratory management invests in this strategy, especially by constantly ensuring the safety of tools to replace incorrect parts. second: conclusions of the research hypotheses 1. the factory management applies the six guided manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, on-time production, cellular manufacturing, and rapid change) in its production processes. 2. investing in the six guided manufacturing strategies by administrative leaders would increase the efficiency of production processes and reduce waste and loss of resources because these strategies are compatible with each other and do not contradict each other when applied by administrative leaders. third: recommendations because the factory management has a perception of rationalized manufacturing strategies, these perceptions must be maintained by introducing new workers to training courses that include introducing these prevention strategies and how to apply them in an optimal manner. at the level of sub-strategies, the researchers adopt the following recommendations: 1. with regard to the comprehensive quality management strategy, the laboratory management must continue to gradually introduce improvements to its products by conducting research and studies on the medicines provided to patients and benefiting from the experiences of other companies in developing their medicines. 2. with regard to the comprehensive productive maintenance strategy, the factory management must work to form committees from various specializations that adopt the process of diagnosing problems and working to address them, and serve as a link between working individuals who may provide opinions and suggestions through their experience that contribute to solving problems more quickly, as well as the possibility of avoiding the problem. before it happened 3. with regard to the strategy of continuous improvement, the management of the laboratory, when applying this strategy, should work to encourage individuals to present new ideas that contribute to american journal of business management, economics and banking volume 20 january, 2024 p a g e | 105 www.americanjournal.org improving its operations in a way that makes them compete with other pharmaceutical companies in the quality of their products and the possibility of increasing the quantity of production of products that meet the needs of patients. 4. regarding the just-in-time production strategy, the factory management must balance delivering the order directly to the work site to be converted into finished products and reducing inventory to the minimum to eliminate all forms of waste. 5. with regard to the cellular manufacturing strategy, the factory management must work to maintain the arrangement of machines in a way that allows a smooth flow of production elements, as well as reduce waste in its operations through continuous improvement of the stages of the production process. 6. with regard to the rapid change strategy, the factory management must constantly continue operations to ensure the safety of tools to replace defective parts in order to avoid interruption in production processes. as for the two research hypotheses, the researchers adopt the following recommendation: the laboratory management must maintain the application of the six guiding manufacturing strategies (total quality management, comprehensive productive maintenance, continuous improvement, ontime production, cellular manufacturing, and rapid change) in its production processes to provide products and services that meet the needs of patients, especially at this time when the environment is experiencing there are few factories in iraq that produce medical products. moreover, investing in this strategy is one of the means that increases the efficiency of production processes and reduces waste and loss of resources, because these strategies are compatible with each other and do not contradict each other when applied by administrative leaders. references a. periodical 1. chahal, v., & narwal, m. (2017). impact of lean strategies on different industrial lean wastes. international journal of theoretical and applied mechanics, 12(2), 275-286. 1. al-asadi, zeina jihad. (2020) just-in-time production and its impact on reducing costs and improving product quality. journal of petroleum research and studies, volume (1), issue (10) 2. ismail mahmoud ismail, & muhammad. (2019). the impact of continuous improvement on the quality of banking service. scientific journal of commercial and environmental studies, 10 (issue four, part two), 717-739. 3. al-buhairi, & abdul-wahab abdul-hamid muhammad saif. (2020). the impact of applying the cellular manufacturing system in achieving competitive advantage. 4. muthana firas ibrahim. (2019). lean manufacturing and environmental management systems iso14001 relationship and impact: a field study in the kirkuk cement factory. journal of the university college of knowledge, volume (1), issue (28). 5. al-tamimi, iyad jassim zaboun and saad, salma mansour. (2022). employing the lean manufacturing system to achieve a competitive advantage using (cellular manufacturing) technology (an applied study in the general company for textile and leather industries leather factory laboratory (journal of the city of the world university college, volume (1), issue (14)) american journal of business management, economics and banking volume 20 january, 2024 p a g e | 106 www.americanjournal.org 6. al-jarjari, khader khalil. (2014). the lean manufacturing strategy and its role in achieving the organization’s competitive advantage. an exploratory study on a number of industrial companies in zakho district/dohuk governorate. journal of human sciences, zakho university, volume (2), issue (2), pp. 452-472) 7. raafat assi hussein al-obaidi. (2020). the role of comprehensive productive maintenance requirements in achieving outstanding performance: an exploratory study of the opinions of a sample of managers and department heads in the general company for the ready-made clothes manufacturing/nineveh and the general company for the home furniture manufacturing/nineveh, (124), 111-125. journal of management and economics, issue (124), p. :(111-125) 8. ali muhammad, h., & hussein. (2021). continuous improvement and its relationship to excellence in employee performance (field study). scientific journal of commercial and environmental studies, volume (1), issue (12), pp. (521-551) 9. ali abdel razzaq, m. m. yasser mouloud hajim, & eng. zahid mohammed saleh. (2021). the impact of lean manufacturing on marketing opportunity activities: an exploratory study in the general company for pharmaceutical manufacturing in samarra. journal of business economics for applied research, volume (1), issue (1) 10. kamal zaki ali al-khadrawi, sh., sharif, marouf abdel-rahim, sami, kamal mahmoud muhammad, & rehab. (2021). the guided manufacturing approach and its relationship to achieving competitive advantages for the facility. scientific journal of commercial and environmental studies, volume (4), issue (12), pp. (357-384) 11. majed muhammad saleh, & hussein refaat abdel karim al-daoudi. (2018). the foundations of comprehensive productive maintenance and its role in achieving sustainable competitive advantage strategies al qalam magazine, volume (4) issue (2) 12. ismail mahmoud ismail, m., & muhammad. (2019). the impact of continuous improvement on the quality of banking service. scientific journal of commercial and environmental studies, 10 (issue four, part two), 717-739. 13. lara qassem khanjar, & a. m. dr. fayhaa abdullah yaqoub. (2018). the impact of continuous improvement in achieving a competitive advantage for iraqi universities and their research projects: (applied research at the university of technology/iraq). journal of accounting and financial studies, 13(44). 14. m. raafat assi hussein al-obaidi. (2020). the role of comprehensive productive maintenance requirements in achieving outstanding performance, an exploratory study of the opinions of a sample of managers and department heads in the general company for the ready-made clothes manufacturing/nineveh and the general company for the home furniture manufacturing/nineveh, journal of economic and administrative sciences, no. (124). 15. azaizia. (2020). the impact of applying lean manufacturing principles in enhancing sustainable environmental performance an exploratory study in the tebessa cement company. 7(5), 1-23. 16. saleh, majid muhammad and al-daoudi, hussein rifaat abdel karim. (2018). the foundations of comprehensive productive maintenance and its role in achieving sustainable competitive advantage strategies al-qalam magazine, volume (4), issue (2) 17. al-gul, zidan muhammad ibrahim and others, (2021), continuous improvement method as an effective strategic tool to obtain a competitive advantage, islamic journal of financial management, volume (1), issue (1). . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 107 www.americanjournal.org 18. aseel, ali mazhar and khawla, radi azab, (2011), lean manufacturing and sustainable competitive advantage: relationship and impact: an exploratory study in the men’s clothing factory in najaf, al-qadisiyah journal of economic sciences, volume (4), number (13). . b-book 1. stevenson william j., 2021, operations management, 14th ed., mcgraw-hill companies, inc., new york. 2. schroder, roger g., 2016, operations management decisions and cases, 7re ed., mcgraw-hall, inc., new york. 3. . krajweski lee j., and ritzman larry p., 2016, operations management processes and value chains, 11th ed., edition person, u.s.a. 4. heizer, jey and render, barry, munson, huak, 2016, operations management sustainability and supply chain, 12th ed., global edition, new york san francisco. arabic messages: 1. muhammad, sahar babiker yassin, & ismail othman muhammad al-najib, 2016) the just-intime production system and its role in achieving comprehensive quality, master’s thesis, sudan university of science and technology, college of graduate studies. 2. al-mashharawy, zaher hosni qassem (2015), using the value stream model for the purposes of supporting a sustainability strategy in light of a guided manufacturing environment, applied study, master’s thesis, faculty of commerce, ain shams university 3. shaheen, mohamed ahmed (2018) an analytical study of the effects of the manufacturing environment on the choice of cost systems. suitable for application under. guided production policy. field study, master’s thesis, faculty of commerce, ain shams university 4. wael, bin yato. (2021). the role of lean production in reducing waste in productive institutions, master’s thesis, college of science 5. safia bin amer. the contribution of the just-in-time (jit) production system to improving the performance of industrial enterprises. study of a group of algerian industrial institutions. master’s thesis, faculty of economic and commercial sciences and facilitation sciences, university of m’sila. books 1. radwan, mahmoud abdel fattah, 2013, total quality management, thought and philosophy before its application, arab group for training and publishing, cairo, egypt. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 48 www.americanjournal.org participation of eastern countries in fair trade (1920s) joraboev n. yu. associate professor of tdtru a b s t r a c t k e y w o r d s in this article, the participation of eastern countries in soviet trade fairs in the 20s of the last centuries, the activity of central asian economic agencies in this matter, i.e., the organization of an international trade fair in the region, and the position of central foreign trade organizations in relation to it are highlighted in the light of the historical materials of that time. great silk road, xi'an, trade, economy, fair, nizhegorod fair, baku fair, tashkent, russian eastern chamber of commerce, central asian chamber of commerce, central asian economic council, trading companies. introduction: turkestan is geographically located on the important route of the great silk road, and has played an important role in the east-west trade since ancient times. the caravans that started from the ancient city of xian came to the cities of kashgar and urumchi in eastern turkestan through western china, and from there they went to the north russia. at this point, the position of turkestan as an intermediary in the trade and economic relations between russia and the eastern countries is remarkable. active participation of eastern countries in international fairs on the territory of russia mainly dates back to the beginning of the 20s of the last century. in particular, the nizhny novgorod (nizhny novgorod) fair, which was reorganized in 1922, should be highlighted. in the first year of this fair (1922), 29 foreign eastern companies participated. these were mainly iranian trading firms. in 1923, as a result of the introduction of a license-free procedure for trade with afghanistan and iran by the people's commissariat of foreign trade of the rsfsr, the participation of eastern merchants in the fair became more active. in the same year, the number of participating eastern firms reached 76, the following year (1924) 237, 1925 259, and 1926 361 [1]. or, in 1925, the total amount of trade of the fair was 150 million soums, so 13.2 million soums were contributed by the east china, turkey, mongolia and iraq [2]. at the same time, a number of events were carried out on the scale of turkestan in order to more actively attract foreign eastern countries to the nizhegorod fair. because turkestan is geographically a neighbor of foreign countries of the east, and if we take into account the fact that they took their goods from here, the matter becomes self-evident. taking this into consideration, the central asian representative office of the ussr labor and defense council (upolsto) established a fair assistance bureau under the central asian branch of the russian eastern chamber of commerce (rshsp) in order to ensure consistent participation of eastern countries in the nizhegorod fair of 1925. the bureau included ambassadors of iran and afghanistan in tashkent, american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 49 www.americanjournal.org and information about the fair was delivered to them. in addition, the central asian branch of the ussr published a separate supplement to its special publication "middle eastern trade" in three languages (uzbek, russian, persian) entitled "nizhegorod fair in 1925" and distributed it to eastern countries free of charge. later, the tashkent commodity exchange established a cooperation committee for the nizhegorod fair. according to the information provided by the "central asian trade bulletin", this committee was entrusted with the task of familiarizing the central asian trade organizations and eastern traders with the conditions of the fair, concessions, quantity of goods and other issues related to sales [3]. in conclusion, russian trade and economic organizations managed to work diligently through central asian mediation and ensure the active participation of foreign eastern firms in the nizhegorod fair, which is geographically far away. the fact that 361 eastern trade firms participated in the nizhegorod fair held in 1926 can be a proof of this. so, in the conditions of the new economic policy (yais-nep), which gave a number of freedoms in terms of foreign economic relations, how did central asian economic authorities react to this issue? in general, what was the situation in the field of foreign trade at this time? first of all, it should be noted with regret that the delimitation of the nation-state in the region (1924) was the beginning of the disintegration of the economic unity that had historically been formed in this region for centuries. but there was no hurry. in november 1926, an office completely subordinate to the center the central asian economic council was established. however, it is known that this council did not exist for a long time, it was abolished in 1934 at the initiative of the political bureau of the central committee of the cpsu(b). moreover, this council did not have independent rights in the field of foreign trade. nevertheless, it is impossible not to emphasize that some of our economic agencies, regardless of the pressure of the center, had tendencies to seek freedom in foreign trade relations. after all, they understood that it would never be possible to enter the international market without it. in particular, the fact that the central asian branch of the rshsp received the status of an independent chamber was the first achievement in this regard. in the history of trade and economic relations of central asia with the neighboring countries of the east in the 20s, this chamber has an extremely important place, which requires a separate topic. the issue of the fair, which we are writing about, is directly related to the initiative of this chamber. the active participation of eastern trading firms in the international fairs of nizhegorod and baku showed that there was a great need for industrial goods in them, and if the fair was organized in a more convenient geographical location, it could undoubtedly succeed. in this sense, the organization of a trade fair of international importance in the territory of central asia was put on the agenda [4]. holding such an economic event was also important because after the nizhegorod fair in the second half of the year, the level of trade with iran, afghanistan and western china on the border of central asia would decrease to a certain extent. because eastern trade firms would buy a large amount of goods from the fair, and this situation would lead to a significant decrease in the need for central asian export goods in the coming months. in addition, it soon became clear that there were different views on this issue. the central asian branch of rshsp organized a special survey (questionnaire) in order to find out the opinion of existing trade organizations on this issue. it collected information from 31 trade and economic organizations operating in central asia. 26 of them turned out to be favorable, and the rest were negative. nevertheless, the central asian branch of rshsp found it necessary to organize an international trade fair [5]. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 50 www.americanjournal.org in an article entitled "central asian fair" published in "kyzil uzbekistan" newspaper, the following comments were made about the necessary conditions for organizing a fair in the country: "in order to successfully launch the central asian fair, it should be called before the nizhegorod fair. the following things guarantee its development and success: 1) our geographical situation; the goods of the countries neighboring to central asia, sent to the ussr and bought from it, pass through central asia; 2) the proximity of central asia to the nizhny fair is very convenient for middle and small eastern traders; 3) trade customs in central asia are similar to trade customs in eastern countries. also, tashkent connects baku and other fairs in our eastern trade" [6]. by the way, it should be mentioned that when a fair is organized, the question of where to call it is also the cause of sharp disputes. considering turkmenistan's border with afghanistan and iran, several organizations proposed to hold the fair in marv or chorjoi, others in poltaratsky (ashkhabad), and some recommended bukhara to hold it here, taking into account the ancient fame of bukhara in trade with the east [7]. however, based on the experience of the nizhegorod and baku fairs, the central asian department of the rshsp, noting that eastern merchants buy industrial goods on a large scale, concluded that it is appropriate to hold the fair in tashkent, one of the major industrial centers of central asia [8]. the task of decisively solving the issue of the fair was assigned to the central asian trade conference, which was to be held in tashkent in may 1926, at the initiative of the labor and defense council of the ssji [9]. it was necessary to call this congress because there was no single organization in central asia that organized foreign and domestic trade at the same time. however, internal trade was under the control of the people's commissariat of internal trade of the republic, and foreign trade was under the central asian representation of the people's commissariat of foreign trade of the ussr. in other words, there was no independent foreign trade organization in central asia. on top of that, the session, which was expected to consider important issues, as well as the issue of the fair, was postponed twice under the pretext that the organizational aspects were not yet ready. during this time, there were changes in the internal and external trade, and the central asian economic council decided that it is no longer appropriate to call this session. the economic council of uzbekistan, in its meeting held in november 1925, noted that the newly formed central asian republics are developing their own trade characteristics and emphasized that there is no need to convene such a meeting [10]. thus, the session was not called. but the issue of organizing an international fair in central asia remained on the agenda. in fact, it is not difficult to understand that the central trade agencies, while not holding the congress, wanted to solve the issue of the fair for their own benefit. after all, the organizers of the nijegord fair, as well as the officials of the rshsp, did not have peace of mind when the international fair was to be held in central asia, as they would lose customers from the east. but in the trade with the east, it was impossible not to count on the tendencies of the central asian republics to strive for freedom. in 1926, when the central asian branch of the rshsp received the status of an independent chamber, the central asian representation of the labor and defense council of the ssji and the state planning committees of the central asian republics raised the issue of convening an international trade fair in the region [11]. unfortunately, in those years, neither the center nor some of our local trade organizations paid serious attention to putting this issue into practice. thus, the central asian international trade fair, a wonderful event that should fill the pages of our economic history in the 20s, was not called. this good work, to put it bluntly, was a victim of the indifference of the central trade agencies to the foreign economic american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 51 www.americanjournal.org interests of the remote national territories, and the intolerance of some of our local organizations in this regard. almost 100 years have passed since then. now, uzbekistan is independent and free. it has freed itself from the shackles of the totalitarian and highly centralized bureaucratic system of the former union and operates freely in foreign and domestic trade relations. in a word, uzbekistan has stepped on the path of development and progress. it has become an equal member of many prestigious international organizations in the field of economic cooperation. we now have the necessary regulatory documents related to foreign economic relations, our own ministry. the socio-political stability prevailing in the republic guarantees that many countries of the world will boldly enter into economic relations with us. nowadays, uzbekistan is considering joining the international trade organization. in conclusion, there are all grounds for solving the issues related to revitalization of any foreign economic relations. if the modern economists of our republic seriously consider the issue raised by their colleagues in the 20s of the last century to organize a trade fair of international importance in central asia, it will not be without benefits, moreover, this event will bring together india, iran, afghanistan, turkey, indonesia, it would have further strengthened our growing economic ties with malaysia and other eastern countries. in this regard, the proposal of the president of our republic, shavkat mirziyoev, in his speech at the sco summit held in samarkand on september 16, 2022, to hold a large sco trade fair every year, and to create a single electronic platform based on it, was a practical step in this regard, no exaggeration [12]. references: 1. "red uzbekistan", november 12, 1926. 2. "torgovlya srednego vostoka", #9-12, tashkent, 1925, p.35. 3. tsga uzssr. f.9., op.1, ed.xr.2441, l.5. 4. in that place. 5. s. zashchuk. problema mejdunarodnoy fair v sredney azii. "torgovlya srednego vostoka", no. 9-12, 1925, p. 33. 6. "red uzbekistan", november 12, 1926. 7. "turkestanskaya iskra", no. 4, january 5, 1926. 8. "torgovlya srednego vostoka", no. 9-12, 1925, p. 33. 9. jurabaev n. yu. history of trade and economic relations between central asia and afghanistan and iran. – dissertation na soiskanie uchenoy stepi candida istoricheskix nauk. tashkent, 1990. 10. tsga uzssr. f.9, op.1, ed.xr. 2407, l.3-6. 11. tsga uzssr. f.9, op.1, ed.xr. 2441, l.11. 12. see: the speech of the president of the republic of uzbekistan shavkat mirziyoyev at the meeting of the council of leaders of the member states of the shanghai cooperation organization. "people's word", september 17, 2022. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 77 www.americanjournal.org the impact of bank governance in light of financial and economic crisesan applied study in the iraqi middle east investment bank – baghdad assistant prof jasim. m, doai al-esraa university jasim_mashatat@yhoo.com assistant lecturer, hanan jumaa hanzal imam ja'afar al-sadiq university (peace be upon him) college of administrative and financial sciences hanan_jumaa@sadiq.edu.iq a b s t r a c t k e y w o r d s government banking is receiving increasing attention from financial institutions in all countries due to its crucial role in avoiding the risks of financial and economic crises. in light of this, the research aims to measure governance variables in the face of these crises, as the iraqi middle east investment bank and the bank of baghdad tested a research model, and this was tested through two hypotheses, as several statistical methods were used, including descriptive statistics for the arithmetic mean and standard deviation. a set of conclusions were reached, including there is a clear interest on the part of the bank under discussion in applying the foundations, principles and standards of governance, as they are a guarantee characterized by transparency. accordingly, recommendations were presented, including the importance of taking sound financial and administrative measures to confront financial and economic crises, including practicing basic activities in work and avoiding activities (buying, selling, mortgage, etc. governance, financial and economic crises. introduction research importance the importance of the research comes as follows : 1. the importance of the bank under study and other banks applying governance principles and standards as it is a precautionary step to confront crises before they occur . 2. adopting the foundations, principles and standards of governance in financial and banking institutions, including the bank under study, makes ethical and legal banking transactions subject to continuous and fair oversight. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 78 www.americanjournal.org 3. ensuring the continuity of a financial or banking institution in an ever-changing environment that is constantly exposed to crises requires it to adhere to the principles and standards of governance. research aims 1. the research seeks to achieve the following objectives : 2. identify the concepts related to governance according to what will be addressed in the research literature . 3. measuring the research variables (secretariat, public policy, monitoring the progress of work in the bank, compensation, committees, and basic functions of the board) and the financial crisis on the other hand . 4. finding successful means of governance through which the bank can achieve outstanding performance and avoid financial crises. research hypothesis the research is based on two hypotheses two basic ones are : the first main hypothesis: there is a good impression among the research sample about the importance of the relationship between governance standards represented by (secretariat, general policy, monitoring the progress of work in the bank, compensation, committees, and basic functions of the board) and the financial crisis. the second main hypothesis is that the interest of bank employees in governance standards is represented by (honesty and politics. the public, monitoring the progress of work in the bank, compensation, committees, and the basic functions of the board) would preserve the rights of shareholders in the bank and avoid the financial crisis . search limits 1. 1_ time limits from 9/1/2023 to 2/1/2024 _ _ _ 2. 2 _ spatial boundaries:the iraqi middle east investment bank_in baghdad governorate previous studies 1study by abdel halim/2005 the study is entitled (bank governance). the study aims to measure the extent to which sudanese banks apply institutional governance and highlight the importance of applying governance to the sudanese banking system. the researcher used the questionnaire as a tool for the study, while the research community is the total national banks operating in sudan. the study concluded that sudanese banks apply the principles of corporate governance represented in the decisions of the basel committee on banking supervision and the instructions of the central bank of sudan. 2study by abu al-oyoun 2/2003 the title of the study is (governance from a banking perspective: important controls to achieve the most efficient management in egyptian banks and apply international standards in liquidity and reserve ratios and lending concentration). the study confirmed that sound practice of governance leads to supporting the soundness of the banking system. the basel committee on banking supervision has established the necessary standards to regulate and monitor the industry. banking. the central bank has taken many measures that are in line with the basic rules approved by the basel committee, which includes the legal, regulatory, supervisory and banking framework, in addition to setting prudent rules and oversight and how to implement and apply banking laws, which are the limits of the activity of banking units, the liquidity ratio, the reserve ratio, the capital adequacy rate, american journal of business management, economics and banking volume 21 february, 2024 p a g e | 79 www.americanjournal.org asset classification and composition. provisions and concentration ratios for loans, linked loans and lending to related parties. 3al-saidi’s study / 2005 title of the study ( corporate governance in countries of the middle east and north africa region: the role of the banking system in ensuring transparency and disclosure). this study addressed three main topics: the importance of corporate governance principles and standards in an increasingly connected world is evidence of the relationship between corporate governance/management, economic efficiency, investment and growth. governance problems of the banking and financial sector and the role of the banking and financial sector in adopting good practices and applications of corporate governance /management in the nonbanking financial sector. procedural steps and action plan to promote corporate governance /management in mena countries with a focus on the special role of monetary and banking supervisory authorities. 4akoum study , 2006 study title (islamic banking towards a governance model the study addressed the need to comply with international standards and create legal, legislative and regulatory frameworks that help the growth of islamic banks and financial institutions and benefit from global finance, especially with the current developments in the factors of liberalization of global trade, the freedom of movement of capital without barriers, the lack of qualified human resources, and the decreased ability to spread geographically within islamic countries, due to the small size of banks, the low degree of transparency in presenting results and operations, and the weakness of capital, governance in islamic financial institutions focuses on the relationship of management with ownership, protecting rights holders and everyone related to the institution, in addition to the specificity of these institutions as they operate in accordance with islamic sharia, and here the importance of implanting the principles of governance is consistent with the islamic banking system, especially the risks it includes, such as profit and loss sharing. the first topic a cognitive framework for governance in banks first: the concept of governance the concepts and foundations of good governance, the translation of the term (good governance ), have spread in developed countries for nearly 15 years, and have moved to the arab administration space for several years, especially through the activities of the arab organization for administrative development in 2002 through its publications of the book: “ governance.” “issues and applications ,” as well as its conferences aimed at disseminating that term and its components. ( arab organization for administrative development, fourth conference 2010, 18) corporate governance is represented by (the set of relationships that bring together the company’s executive management, its board of directors, its shareholders, and other stakeholders on the other hand, as it is the mechanism through which the company’s strategy and objectives are determined and then the appropriate means to achieve these objectives. (matar and nour, 2007, 15) and with us therefore, corporate governance is american journal of business management, economics and banking volume 21 february, 2024 p a g e | 80 www.americanjournal.org receiving increasing attention in various countries of the world, including developed and emerging countries, for its crucial role in companies avoiding the risks of criticism and financial failure alike ( jian fu, 2014 ( second: the factors that were imposed on governance there are several factors that contributed to resorting to governance , which are: (hamad, 2005, 29) (al-rubaie, 9, 2018) 1. executives' control over capabilities the company, and exploiting it primarily for their benefit, either due to the weakness of the boards of directors or in collusion with him, whose members are major shareholders . 2. the enemy here is companies competition , and defeating it means working by all means to exclude it from the commodity or commodity market activity, and all of this turned the market into a battlefield, not a place of livelihood , which deepened the conflict of interests even among shareholders, executive management and other stakeholders, hence the need it is urgent that there are controls to regulate the relations between these parties, which is what they do governance to find it 3. the corruption that was rampant in... the economic and financial field led to a series of collapses and numerous bankruptcies of major corporations companies and institutions in the world, the most prominent of which is the collapse and bankruptcy of the commercial credit bank international in 1991 , third: general characteristics of governance : the term corporate governance refers to the following characteristics (youssef, 2008, 17) oecd, 2011, 13 ( discipline: that is, following appropriate and correct moral behavior . transparency: that is, providing a true picture of everything that is happening. independence: that is, there are no unnecessary influences or pressures to work. accountability: that is, the ability to evaluate and evaluate the work of the board of directors and executive management . responsibility: that is, there is a responsibility before all stakeholders in the facility . fairness: respecting the rights of various stakeholder groups in the facility. social responsibility: that is, viewing the company as a good citizen . accordingly, the following figure (1) represents the most important principles of corporate governance american journal of business management, economics and banking volume 21 february, 2024 p a g e | 81 www.americanjournal.org source : http://www.cipe-arabia.org/ it must be noted that in recent times the importance of corporate governance has increased significantly for achieving economic development, legal prudence, and social well-being for economies and societies around the world . the second topic corporate governance applications in banks the most important characteristic of banking activity is how risks are managed and not avoided. hence the importance of describing, measuring and disclosing these risks in a way that enables users of financial statements to judge the extent of the bank’s ability to manage and control risks. (miraj and ahmed, 2009, 14) (monitoring performance by the board of directors and senior management of the bank, protecting the rights of shareholders and depositors, in addition to paying attention to their relationship with external actors, which is determined through the regulatory framework and the powers of the supervisory body. governance in the banking system applies to public banks, private and joint banks) (youssef, 2008, 20) as you know, it is the rational exercise of management powers by relying on the laws, standards and regulating rules that define the relationship between the company’s management on the one hand and its shareholders. shares and stakeholders or related parties on the other hand. (sami, 2005, 86) (muhammad, 258, 2013) first: the proposed model for governance applications in iraqi banks : we will analyze the results of applying governance to the financial crisis in the form of indicators of measurement levels through the proposed model, adapted from (al-jubouri 2007, 91). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 82 www.americanjournal.org table no. (1) second: applications of governance to the financial crisis in the iraqi middle east investment bank (indicators and topics 1honesty integrity : some principles have been applied as a basis for preventing corruption and bribery in the work of the iraqi middle east investment bank, whether at the level of internal or external transactions. these principles are: (integrity and justice, confidentiality and privacy, professionalism and professionalism, adherence to directives, follow-up of proper implementation procedures, and transparency of operations. and distinguished customer service, promoting the bank’s services, operations that raise suspicion, collecting and retaining information about customers, dealing with customer complaints, internal relations in the bank, and exchanging tasks and rotation with other parties) are considered sub-principles of the original principles of governance issued by the basel ii committee . transparency and accountability: the bank follows most of the principles related to transparency and accountability, as it is impossible, in the event of a lack of transparency, to hold board members accountable or to support the market to help correct the mistakes of bank members if sufficient data is not disclosed. attention to results: the bank is one of the iraqi banks most concerned with results, as most of its dealings with the public take place through its branches, and therefore it must be concerned with achieving profits for shareholders. if the bank fails to achieve profits year after year, the reason for this is due to mismanagement, corruption, and the absence of conscious management with a clear strategic vision. 2public policy basic objectives: as a private sector bank, its primary objective is to provide the appropriate service to the public (investment) while achieving profit, security and liquidity as basic objectives for any bank, as its lending activity is very active, especially through its dealings with real estate loans and related banking facilities. . examination of management performance: the bank relies on specialized experts in the fields of financial and banking sciences, and a specialized expert is appointed alongside each manager in t measurement level number of indicators its topics a honesty 3 integrity , transparency, accountability, and concern for results. b public policy 3 basic objectives, examining management performance , financial decisions. c monitoring the workflow of the bank 3 evaluating the bank’s performance, taking into account the legal framework and compliance with ethical considerations . dr compensation 3 salaries, bonuses, and bonuses e committees 3 internal audit committees, external audit committees, performance evaluation committees. and basic functions of the council 3 strategy formulation , risk management, delegation of powers. g the financial crisis 3 the impact of the financial crisis, investment management, confrontation measures american journal of business management, economics and banking volume 21 february, 2024 p a g e | 83 www.americanjournal.org order to support and monitor the performance of management in the bank. the process of auditing these managers and their work is periodic in order to preserve the bank’s reputation. financial decisions: the middle east bank takes very special care of decisions related to financial and other aspects of disbursement to avoid wasting funds and issues of corruption and bribery. the bank does not make these decisions except after an in-depth study of these issues based on the data and information received from its branches . 3work progress monitoring evaluating the bank’s performance: the central bank of iraq evaluates the bank’s work performance as it is a body that supervises banks in the country, as it is done in accordance with article (40) of the new central bank law, which stipulates that (the central bank of iraq has absolute authority to take all measures to grant a license and regulate... and to exercise oversight over banks and their branches in accordance with what is stipulated in this law and the banking law, and this includes the authority to conduct external oversight and conduct audits of the licenses granted to banks and their branches according to the growth and timing chosen by the central bank of iraq . taking into account the legal framework: the middle east bank, in accordance with the new banking law, is not permitted to open representative offices in or outside iraq except with the approval of the central bank of iraq, as confirmed in article nine. nor is any bank permitted to terminate its operations without prior approval from the central bank of iraq . . the governing legislation and regulations regulating the work of banks are the backbone of banks’ governance frameworks, as they regulate laws and decisions in a precise and specific manner. 4commitment to ethical considerations the middle east bank is one of the well-established banks in dealing with the public, and therefore it enjoys a good reputation as a result of its commitment to banking ethics. it is no secret that the bank’s commitment to these ethics will enhance governance and thus increase investors’ confidence in it. it is also no secret the importance of training administrative staff and making them aware of instilling information and their awareness. with responsibility as rules for a new professional behavior in themselves, it is expected that a managers training institute will be opened as a start for this . 5compensation salaries: the middle east bank provides salaries to its employees and senior management according to the ranks of the career ladder affiliated with the ministry of finance, according to age, certificate, and years of service . bonuses: the middle east bank provides moral and material benefits and bonuses to its employees in order to help them perform better, follow the established plans to the letter, and not allow them to fall under the temptations of bribery and corruption . rewards : the middle east bank grants rewards to members of the boards of directors, managers in banks, and employees who provide distinguished services in their work . american journal of business management, economics and banking volume 21 february, 2024 p a g e | 84 www.americanjournal.org 6committees internal audit committees: the middle east bank has internal audit committees consisting of specialists in internal control and auditing, especially those related to auditing credit transactions and banking facilities . external audit committees: these are committees that supervise all the bank’s work. these committees are represented by the central bank of iraq and the integrity commission, which audits the work of banks by reviewing the total accounts of the middle east bank in the central bank of iraq . performance evaluation committees: the performance of the bank’s employees and senior management is evaluated periodically during board of directors meetings, and when it is noted that some of them are incompetent, it is recommended to dismiss them or refer them to retirement. as for the executive director, he evaluates his performance separately through appointment, since the middle east bank is affiliated with the private sector . 7basic functions of the council strategy formulation : the middle east bank formulates strategies according to its organizational objectives. these strategies are usually long-term, and these plans, which are drawn up by the council, are then evaluated on detailed plans for the branches and departments . risk management: banking risk management in the bank is carried out through the credit control department, as well as supporting the work of this department through the control department . delegation of powers: this is done through the powers that the executive director gives to managers in senior management, thus appointing department managers . 8the financial crisis the impact of the crisis on the bank: taking effective monitoring measures and adopting governance standards . impact on investment: controls for granting investment loans are activated and applied coping measures: encouraging departments to use resources to a greater and more efficient extent. 9the financial crisis, its causes and consequences the financial crisis began as a result of an exaggerated rise in real estate prices that was disproportionate to the real supply and demand in america as a result of the ease of obtaining loans. when borrowers were unable to repay the debt, they returned the homes to the banks, which did not find anyone to buy them. the problem worsened with the inability of companies to market and resell them. these properties are a result of the excessive increase in their prices, as well as the decline in the purchasing power of real estate buyers on the other hand, which led to the spread of infection to other similar institutions. (abboud, 2009, 12) as a result of the securities that banks sold to other institutions, or what is called (debt securitization), which is debt backed by mortgages, which began to turn into (high-risk mortgages), investors around the world began to be more cautious in using these securities. there are no longer buyers for it. this has led to a near-freeze in the availability of credit around the world . american journal of business management, economics and banking volume 21 february, 2024 p a g e | 85 www.americanjournal.org these reasons can be identified as follows: (abboud, 2009, 14( a the financial crisis began as a result of the availability of what is known as cheap money (the decline in the interest rate until it reached 1% in 2003 ad, which increased the demand for loans, especially real estate loans, and with the ease and facilitation of these loans, the demand for them increased, which led to an increase in the price of real estate in the united states . this bubble in the us real estate sector tempted major banks and investment funds to enter the us mortgage market, spreading their risks more widely . b lower quality mortgages. this comes from the fact that the american citizen buys his property on credit from the bank in exchange for mortgaging this property. when the price of the mortgaged property rises, the property owner tries, and as a result of the ease of obtaining a loan, the mortgage holder seeks to obtain a new loan, in exchange for a new mortgage from second-class mortgages, and hence they are called lower-quality mortgages, because they are second-class mortgages, meaning they are more risky if the price of the property decreases, and banks expanded into this type of lower-quality loans, which raised the degree of risk in collecting these loans . c the huge increase in the securitization of real estate debt, which was done by financial engineers in the united states, and that these loans can be converted into complex securities (debt securitization) through which successive waves of financial assets can be generated based on a single asset. d lack or lack of adequate oversight or supervision over intermediary financial institutions , as investment banks are not subject to new financial products such as financial derivatives or supervision over financial bodies that issue certificates of creditworthiness. cycles of increase and decline in real estate prices were previously limited to the countries through which they pass. before, but the recent bubble in the american real estate sector tempted major banks and investment funds from other countries to enter the american real estate loan market, which spread their risks more widely . governance is not just good moral slogans that must be applied , but it has very important implications for businesses, and therefore companies should not wait for governments to impose certain standards of corporate governance on them , but rather they should adopt them voluntarily. unless investors are able to obtain what guarantees them a return on their investments, financing will not flow to enterprises , and without financial flows the full potential of enterprise growth cannot be achieved . one of the major benefits that arise from improving corporate governance is the increased availability of financing and the possibility of obtaining cheaper sources. for financing, which increases the importance of governance, especially for developing countries . the third topic the practical side first: a brief overview of the iraqi middle east investment bank the bank was established as a joint stock company in 1993 with a nominal capital of 400 million k’siraqi dinars, paid for with 100 million dinars, and actually began its work on 5/8/1994. the ban goal is to mobilize national savings and employ them in various investment fields and contribute to strengthening the process of economic development in iraq in accordance with the general policy bank’s goals of development and growth, the bankachieve the framework of the state. in order to american journal of business management, economics and banking volume 21 february, 2024 p a g e | 86 www.americanjournal.org undertakes various types of banking activities and as permitted by the laws and instructions of the central bank of iraq, such as (investment loans, banking facilities, and external transfer(. as for the number, locations, and branches of the bank, they are 20 operating branches inside iraq, 8 inside the city of baghdad and 12 outside it . second: the results of analyzing the research variables using percentages and testing the first hypothesis, as shown in the following tables: )table 2( honesty variable 1membership innominating qualified members of the general assembly or outside it for the board of directors who are characterized by honesty. scale degree repetition percentage _ % 1 1 4 2 1 4 3 3 12 4 10 40 5 10 40 2the bank sets standards that determine the membership of board members in the board of bank and other banksthe . scale degree repetition percentage _ % 1 1 4 2 1 4 3 6 24 4 9 36 5 8 32 3oversight function of the board of directors requires separating the responsibilities of the management and not combining them in one personboard of directors and executive scale degree repetition percentage _ % 1 1 4 2 2 8 3 5 20 4 10 40 5 7 28 the table above shows that the research sample had a good impression of the honesty variable, as 80% represented a good impression on the paragraph related to the efficiency and honesty of the board of directors, while the percentages reached 68% and 68%, respectively, on the paragraphs related to setting standards and separating the two responsibilities of the board of directors (administrative). and executive ( american journal of business management, economics and banking volume 21 february, 2024 p a g e | 87 www.americanjournal.org bpublic policy (table 3) 1members' practical and scientificthe bank's interest requires focusing on the diversity of experiences . scale degree repetition percentage _ % 1 2 8 2 3 12 3 4 16 4 9 36 5 7 28 2the council’s efficiency and performance are evaluated to achieve the strategic performance measurement standardsobjectives and other . scale degree repetition percentage _ % 1 1 4 2 2 8 3 5 20 4 10 40 5 7 28 3the board of directors sets goals and strategies, develops them, and verifies compliance with them . scale degree repetition percentage _ % 1 1 4 2 3 12 3 3 12 4 11 44 5 7 28 the table above shows that the research sample had a good impression of the public policy variable, as 72% represented a good impression on the paragraph related to setting goals and strategies , while the percentages reached 68% and 64%, respectively, on the paragraphs related to evaluating the efficiency and tools of the council and focusing on the diversity of practical experiences. the academic standing of the council members and all the pedigrees are good . cmonitoring the progress of work (table 4) 1the council supervises the formation of the organizational structure and approves the tasks , powers, duties, responsibilities and job descriptions . scale degree repetition percentage _ % 1 0 0 2 0 0 3 2 8 4 9 36 5 14 56 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 88 www.americanjournal.org 2 proposal related to restructuring or reorganization is carefully studied by the boardany of directors scale degree repetition percentage _ % 1 1 4 2 1 4 3 4 16 4 8 32 5 11 44 3shareholders, depositors and borrowersthe bank is committed to fair treatment with all alike scale degree repetition percentage _ % 1 1 4 2 2 8 3 4 16 4 10 40 5 8 32 the table above shows that the research sample had a good impression of the workflow monitoring variable, as 92% represented a good impression on the paragraph related to the board of directors’ supervision of the workflow, while the percentages reached 76% and 72%, respectively, on the paragraphs related to restructuring, organization , and treatment. fair for shareholders, depositors and borrowers, and all ratios are good . dcompensation (table 5) 1approved by the board of directors andthere is a compensation and rewards system known to employees . scale degree repetition percentage _ % 1 3 12 2 5 20 3 7 28 4 10 40 5 0 0 2there is a clear wage structure that is fair, objective and friendly scale degree repetition percentage _ % 1 5 20 2 5 20 3 7 28 4 8 32 5 0 0 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 89 www.americanjournal.org 3rewards and incentives for employees are approved by a committee with authority characterized by integrity and efficiency . scale degree repetition percentage _ % 1 5 20 2 3 12 3 4 16 4 13 52 5 0 0 the table above shows that the research sample had a good impression of the compensation variable, as 52% represented the impression on the paragraph related to approving rewards and incentives, while the percentages reached 40% and 32%, respectively, on the paragraphs related to the compensation and rewards system and wage structuring , which are weak percentages . ecommittees (table 6) 1the council forms committees that ensure the safe, sound and effective conduct of the bank’s business and determines their tasks and terms of reference . scale degree repetition percentage _ % 1 2 8 2 1 4 3 4 16 4 10 40 5 8 32 2the board of directors appoints a risk management committee to enhance its mission in managing strategic risks . degreescale repetition percentage _ % 1 1 4 2 1 4 3 4 16 4 10 40 5 9 36 3the audit committee is established in accordance with the requirements of disclosure and transparency and the instructions of the governing monetary authority . degreescale repetition percentage _ % 1 1 4 2 4 16 3 5 20 4 9 36 5 6 24 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 90 www.americanjournal.org the table above shows that the research sample had a good impression of the committees variable, as 76% represented a good impression on the paragraph related to appointing a risk management committee , while the percentages reached 72% and 70%, respectively, on the paragraphs related to forming committees to manage the bank’s business and establishing a committee. the review is in accordance with the requirements of disclosure and transparency, which are good rates . fbasic functions )table 7( 1board of directors analyzes the strategic risks represented by markets, products, andthe competitors. scale degree repetition percentage _ % 1 0 0 2 1 4 3 3 14 4 8 32 5 13 52 2monetary authority regardingthe bank is committed to the approved decisions of the risk management . scale degree repetition percentage _ % 1 1 4 2 1 4 3 5 20 4 6 24 5 12 48 3the bank takes adequate measures to protect the rights of shareholders, depositors and borrowers. scale degree repetition percentage _ % 1 0 0 2 0 0 3 3 12 4 10 40 5 12 48 the table above shows that the research sample had a good impression of the basic functions variable, as 88% represented a good impression on the paragraph related to protecting the rights of shareholders, depositors, and borrowers, while the percentages reached 84% and 72%, respectively, on the paragraphs related to analyzing strategic risks and adhering to the approved monetary authority. regarding risk management, these are good ratios. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 91 www.americanjournal.org gfinancial crisis (table 8) 1the bank is affected by the financial crisis as it is part of the global banking system scale degree repetition percentage _ % 1 0 0 2 0 0 3 2 8 4 10 40 5 13 52 2the financial crisis affects the investment policy followed by the bank . scale degree repetition percentage _ % 1 2 8 2 2 8 3 5 20 4 10 40 5 6 24 3necessary measures to confront or limit the effects that arise fromthe bank takes financial and economic crises. scale degree repetition percentage _ % 1 1 4 2 1 4 3 4 16 4 8 32 5 11 44 the table above shows that the research sample had a good impression of the financial crisis variable, as 92% represented a good impression on the paragraph related to the bank being affected by the financial crisis, while the percentages reached 76% and 64%, respectively, on the paragraphs related to taking necessary measures to confront crises and the impact of the crisis. the financial ratios are based on the investment policy followed by the bank, which are good . accordingly, the first main hypothesis was accepted, which states, “ there is a good impression among the research sample about the importance of the relationship between governance standards represented by (secretariat, public policy, monitoring the progress of work in the bank, compensation, committees, and basic functions of the board) and the financial crisis ” . third: the results of analyzing the research variables using descriptive statistics (arithmetic mean and standard deviation) and testing the second hypothesis, as shown in the following tables: american journal of business management, economics and banking volume 21 february, 2024 p a g e | 92 www.americanjournal.org asecurity variable table 9 t paragraphs arithmetic mean standard deviation 1 nominating qualified members of the general assembly or outside it for membership in the board of directors who are characterized by honesty. 4.080 1.0376 2 determine the membership of boardthe bank sets standards that members in the board of the bank and other banks . 4.120 1.1299 3 implementing the oversight function of the board of directors requires ard of directors and executiveseparating the responsibilities of the bo management and not collecting them in one person . 3.880 1.0536 the total 4.027 1.0737 table (9) shows that the arithmetic mean for the honesty variable reached (4.027) with a standard deviation of (1.0737), which is greater than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items in the honesty variable, which are all greater than the hypothesized mean as well, and this indicates the research sample’s interest in the variable of honesty in the bank and its subparagraphs. bpublic policy table 10 t paragraphs arithmeti c mean standard deviation 1 the bank's interest requires focusing on the diversity of members' practical and scientific experiences 3.611 1.2543 2 the council’s efficiency and performance are evaluated to achieve the measurement standardsstrategic objectives and other performance . 3.800 1.0801 3 the board of directors sets goals and strategies, develops them, and verifies compliance with them . 3.800 1.1180 the total 3.737 1.1079 table (10) shows that the arithmetic mean of the public policy variable reached (3.737) with a standard deviation of (1.1079), which is greater than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items of the public policy variable, which are all greater than the hypothesized mean as well. this it indicates the interest of the research sample in the variable of the general policy followed by the bank and its subparagraphs . monitoring the progress of work in the bank american journal of business management, economics and banking volume 21 february, 2024 p a g e | 93 www.americanjournal.org (table 11) t paragraphs arithmeti c mean standard deviation 1 the council supervises the formation of the organizational structure and responsibilities and job descriptions approves the tasks, powers, duties, . 4.488 0.6532 2 reorganization is carefully studied by the board ofrestructuring or directors . 4.080 1.0770 3 the bank is committed to fair treatment with all shareholders, depositors and borrowers alike 3.880 1.0924 the total 4.147 0.9409 table (11) shows that the arithmetic mean of the variable monitoring the workflow in the bank reached (4.147), with a standard deviation of (0.9409), which is greater than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items of the variable monitoring the workflow in the bank, which are all of them. it is also greater than the hypothetical mean, and this indicates the research sample’s interest in the variable of monitoring the workflow in the bank and its subparagraphs . ccompensation table 12 t paragraphs arithmet ic mean standard deviation 1 there is a compensation and rewards system approved by the board of directors and known to employees. 2.960 1.0598 2 there is a clear wage structure that is fair, objective and friendly 2.720 1.1372 3 rewards and incentives for employees are approved by a committee with authority characterized by integrity and efficiency . 3.000 1.2247 the total 2.893 1.1406 table (12) shows that the arithmetic mean for the compensation variable was (2.893) with a standard deviation of (1.1406), which is less than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items in the compensation variable, which are all also less than the hypothesized mean except for paragraph ( 3) this indicates the weakness of the compensation that the bank provides to employees. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 94 www.americanjournal.org dcommittees )table 13( t paragraphs arithmeti c mean standard deviation 1 the council forms committees that ensure the safe, sound and effective conduct of the bank’s business and determines their tasks and terms of reference . 3.840 1.1788 2 management committee to enhancethe board of directors appoints a risk its mission in managing strategic risks. 4.000 1.0408 3 the audit committee is established in accordance with the requirements of disclosure and transparency and the instructions of the governing monetary authority . 3.600 1.1547 the total 3.813 1.1247 -ه table (13) shows that the arithmetic mean for the committees variable reached (3.813) with a -و standard deviation of (1.1247), which is greater than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items in the committees variable, which are all greater than the hypothesized mean as well, and this indicates the research sample’s interest in the variable of committees formed by the bank . eb basic functions )table 14( t paragraphs arithmeti c mean standard deviation 1 directors analyzes the strategic risks represented by marketsthe board of , products, and competitors . 4.320 0.8524 2 the bank is committed to the approved decisions of the monetary authority regarding risk management . 4.080 1.1150 3 adequate measures to protect the rights of shareholdersthe bank takes , depositors and borrowers. 4.360 0.7000 the total 4.253 0.8892 table (10) shows that the arithmetic mean for the basic functions variable reached (4.253) with a standard deviation of (0.8892), which is greater than the hypothesized mean of (3). the table above also shows the arithmetic means and standard deviations for the items in the basic functions variable, which are all greater than the hypothesized mean as well. this it indicates the interest of the research sample in the variable of basic jobs in the bank american journal of business management, economics and banking volume 21 february, 2024 p a g e | 95 www.americanjournal.org fthe financial crisis )table 15( t paragraphs arithmet ic mean standard deviation 1 is affected by the financial crisis as it is part of the globalthe bank banking system 4.440 0.6506 2 the financial crisis affects the investment policy followed by the bank . 3.640 1.1860 3 effects thatthe bank takes necessary measures to confront or limit the arise from financial and economic crises . 4.080 1.0770 the total 4.053 0.9712 table (15) shows that the arithmetic mean for the financial crisis variable reached (4.053) with a standard deviation of (0.9712), which is greater than the hypothesized mean of (3). the above table also shows the arithmetic means and standard deviations for the items in the financial crisis variable, which are all greater than the hypothesized mean as well. this it indicates the interest of the research sample in the variable of the financial crisis facing the bank and the rest of its subparagraphs . accordingly, it can be said that the second main hypothesis, which states that (the interest of the bank’s employees in governance standards represented by (secretariat, general policy, monitoring the progress of work in the bank, compensation, committees, and the basic functions of the board) (this would preserve the rights of shareholders in the bank and avoid the financial crisis ) had been accepted . conclusions the research reached a set of conclusions, which are as follows: 1the results of the research showed that there is a clear interest on the part of the iraqi middle east bank to invest in applying the foundations, principles and standards of governance because of its guarantee of transparency. 2the work requires the existence of standards for membership of the board of directors that are characterized by transparency and focused on integrity and achieving the results that the bank seeks . 3there is a diversity of scientific and practical experiences of board members, which play a role in achieving the bank’s strategic objectives and making appropriate financial decisions. 4monitoring the workflow requires the application of good banking governance, as this falls within the bank’s primary responsibilities. 5the system of rewards and incentives granted to members of senior management and employees meets their needs and matches the distinguished performance of those entitled to them. 6the bank operates internal and external audit committees and performance evaluation committees that work efficiently and actively, and their duties include auditing credit transactions and banking facilities. 7the bank has a risk management and strategy formulation department that is important in developing plans and programs that advance the bank’s work . american journal of business management, economics and banking volume 21 february, 2024 p a g e | 96 www.americanjournal.org 8facts have been proven, the most important of which is that banks have shifted to performing all financial activities, including lending, buying and selling, for the purpose of profit, and have abandoned their basic activities, which exposes them to financial and economic crises . recommendations 1it is necessary to strengthen the work of the compliance department, which undertakes to monitor the bank’s implementation of the foundations, principles and standards of governance, as they are the basic guarantee of the bank’s success . 2it is necessary to develop a work guide, standards for job behavior, and a system to measure the extent of adherence to it by the various administrative levels and all employees therein . 3emphasis on developing detailed plans in the form of regulations and instructions for each department in order to implement and monitor it. 4attention is given to finding multiple means to monitor the workflow to ensure the efficiency of work in the bank and to enhance the role of institutional governance . 5providing financial and administrative incentives to senior management in an appropriate manner and also to employees, whether in the form of bonuses, promotions, or any other form . 6attention is paid to activating the role of the audit committee, which provides sufficient independence for internal and external auditors and limits the dominance of executive management . 7setting strategic and detailed objectives that are known to the bank’s employees to ensure their proper implementation. 8the importance of taking sound financial and administrative measures to confront financial and economic crises, including practicing basic activities at work and avoiding activities (buying, selling, mortgages, etc .(. ferenceser 1. http://www.cipe-arabia.org/ 2. abu al-atta, nermin corporate governance for progress state enterprise center us chamber of commerce, washington (2004 ( 3. reports of the middle east investment bank for the years 2005__2012 4. al-jubouri, nisreen farouk, governance standards for improving performance in the banking sector: an analytical study of a sample of iraqi banks unpublished higher diploma research / administrative technical college / baghdad 2007 5. hashad, nabil banking risk management union of arab banks issue no. 286, beirut, september 2004 6. hammad, tariq abdel-al, corporate governance (concepts, principles , experiences), governance applications in banks, university house, egypt, 2005, 7. al-hamalawy, saleh towards the role of internal audit in examining the effectiveness of governance in egyptian banks the fifth conference on corporate governance and its accounting, accounting , and economic dimensions, part three, alexandria university , faculty of commerce 2 8. sami, magdy mohamed (the role of audit committees in corporate governance and their impact on the quality of financial statements published in the egyptian business environment) the fifth conference on corporate governance , alexandria university, faculty of commerce 2005 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 97 www.americanjournal.org 9. suleiman, muhammad, ( corporate governance and addressing financial and administrative corruption) study comparison, house university alexandria 2005 10. abdel halim, muhammad bank governance the fifth conference on corporate governance and its accounting, administrative and economic dimensions, part three, alexandria university 2005 11. abboud, salem muhammad, the global financial crisis between the principle of disclosure and transparency , research presented to the third scientific conference, amman, jordan , 2009 . 12. al-ghunaimi mahmoud, governance and the banking system, a working paper presented to the fifth conference on corporate governance and its accounting, administrative, and economic dimensions, part three, alexandria university, faculty of commerce, 2005 13. matar, muhammad, and nour, abdel nasser (the extent to which jordanian operating companies adhere to the principles of corporate governance) a comparative analytical study between the banking and industrial sectors university of jordan jordanian journal of business administration , volume 3, 1st january 2007 14. miraj , abdel qader hawari and ahmed , abdel h. faiz a majdal , research ( corporate governance in the banking and financial sector and its role in establishing the rules of transparency . 2019 15. arab organization for administrative development, arab society for environmental management, working papers of the fourth arab conference on environmental management, sustainable development and community management (future resources for central and local governments, the private sector and civil society). 2010 16. al-rubaie, bank governance and its impact on performance and risk, iraq, al-yazouri, 2018. 17. allen, jamie & li rui . (nana li). (2018). awakening governance : acga china corporate governor 17 18. nance report 2018, asian corporate governance association, harvard law school forum on cor 19. porate governance and financial regulation , saturday, august 25, available at : https://corpgov 20. law. harvard.edu/2018/08/25/awakening-governance-acga-china-corporate-governance-re 18 _ port 2018/?fbclid=iwar267uekpq83flfspymqwezwgqfwe9x4mgn3o_iilodrqayyrge3kr5 rzf 21. hkex. (2014). hong kong corporate governance: a practical guide by the hong kong. white – 19 page: london, corporate governance principles, april, mainland china and hong kong, hermes. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 27 www.americanjournal.org customer hope in virtual brand communities: a literature review abbas fadel sultan 1 1 directorate of nationality and civil status in diwaniyah, iraq, email: abbasfadel1978@gmail.com saif ali jasim 2 2 al -furat al -awsat technical university, technical institute of dewaniya, iraq, email: saif.almofraje.idi@atu.edu.iq , https://orcid.org/0000-0001-9042-7726 sahar jabbar rahman 3 3 ministry of education, diwaniyah directorate of education, email: saharjabark55@gmail.com. a b s t r a c t k e y w o r d s the current research aims to examine the views of previous literature regarding customer hope in virtual brand communities. in today's world, customers hope for a better experience when they look to make a purchase. they also look for convenience, affordability, and quality that goes above and beyond. they have suffered in the past, so virtual brands must take these expectations seriously, and strive to meet or exceed them in order to build a lasting relationship with their customers. virtual brands must be willing to put in the hard work and go the extra mile to make sure their customers are happy. this means ensuring that their purchases are of the highest quality, and that their products are affordable. hope is the tangible ability to find paths to achieving enjoyable goals, along with the perceived motivation to use those paths to achieve the desired goal. customer hope, virtual brand communities introduction أفضيل فهم إلى سيوا حد على والمهننون الباحثون يحتاج واألرباح، اإليرادات نمو وبالتالي التجارية، العالمة قنمة تحسينن أجل من مهم كعامل التجارية العالمة على التعرف يتم ,اإلنترنت عبر التجزئة وتجار المسيتهلينن بنن العالقة تحسينن على تعمل التي للعوامل االفتراضنة التجزئة تجار يقدمها التي التجارية العالمة مع الزبون عالقات في للغاية ومؤثر (kaur et al.,2020). american journal of business management, economics and banking volume 23 april 2024 p a g e | 28 www.americanjournal.org التسييلنم وأوقات األسييعار، شييفافنة وزيادة العالم، أنحا جمنع في إلنها الوصييو وإمياننة االفتراضيينة التجارة منصييات نمو ومع القناة هذه قنمة بشينن فضيواًلا أكثر الزبائن أصيب األسير،، (weber et al.,2021). ،فهم إلى والمهننون الباحثون يحتاج وبالتالي وبالتالي التجارية، العالمة قنمة زيادة أجل من االفتراضيينة التجزئة وتجار المسييتهلينن بنن العالقة على تؤثر التي للعوامل أفضييل واألرباح اإليرادات زيادة (hardesty et al.,2009) اعتمادًا أكثر أصيبحت القنوات متعددة بالتجزئة البنع أعما نماذج ألن نظًرا األهمنة بالغ أمًرا الشييرا إعادة ونوايا اإلنترنت عبر التسييو على تؤثر التي العوامل فهم أصييب ، االفتراضيينة المبنعات على (chiang et al.,2018). التسييو يتطلب المتجر، داخل التسييو عيس على االفتراضيينة شييرا عملنة بإجرا العمنل يقوم عندما مهما األمل مفهوم ويعد اسيترجا،) الطاقة اسيتثمار إلى أيضًيا العمنل يحتاج ذل ، إلى باإلضيافة ,المسيتهل أهداف تحقنق في األمل من مسيتو االفتراضينة على التغلب أجل من (الفعالة السييداد وسييناسيية والمنشيي ت اآلمنة المعامالت) طر عن والبحث (والمقارنة والتحلنل المعلومات الشرا بنهداف المرتبطة المخاطر (hardesty et al.,2009). ناجحة تداو تجربة أجل من والعمل الصيحنحة بالعقلنة الشيرا مشييالت مع التعامل من العمال األمل مفهوم يمّين (chiang et al.,2018). التسيييو في األمل شيييدة إن إذ ,ازدياد في .وااللتزام والثقة التجارية العالمة رضيييا من تزيد أن المرج من والتي المستهدف العمنل تحقنق مد على األرج على يعتمدان وااللتزام، والثقة الرضا مثل التسو نتائج في األمل ومستو االفتراضي . شيرا على العمال ويشيجع إيجابي بشييل تقننمها يتم بفائدة يتمنز الهدف (تحقنق) تحقنق ألن أهدافهم العمال يحقق أن المرج من من المزيد من إيجابنة نتنجة اسييتنتاج للعمال الهدف تحقنق يتن ببسيياطة، .الفائدة تل تعظنم إلى بحاجة كانوا إذا التجارية العالمة نفس علم أبحاث أكدت .التجارية العالمة شيرا إعادة وبالتالي االفتراضيي، التجزئة بائع يقدمها التي التجارية العالمة مع التفاعالت االفتراضينة التجارية للعالمات يمين لذل ,الراحة ونتائج العاطفنة االسيتجابات بنن العالقة في األهداف لتحقنق المعتد الدور على االفتراضينة التجارية العالمة قنمة تنثنر ومعرفة الواسيع الفضيا عبر السيو في الزبون امل بنا االفتراضينة من المنظمات تمين أن الزبون امل على . الدراسة مشيلة تقنناتا إن إذ ,االفتراضينة التجارية العالمة المتزايد بالتنثنر االعتراف وتم ,التسيويق وظنفة جوهر إلى والتينولوجنا اإلنترنت انتقل و اإلنترنت ظهور مع تتماشييى والتي تطورت، التي المتطورة واالتصيياالت المعلومات web2.0، لتسييهنلا منصييات بمثابة كانت أن الزبائن وينمل ,االفتراضنة التجارية العالمات مجتمعات تشينل إلى أد مما بننهم، وفنما التجارية والعالمات العمال مع التفاعل تيون أن ينملون إنهم عن فضييال ,وخدماتهم بمنتجاتهم دراية على يقابلونهم الذين الزبائن خدمة ممثلو ييون أن احتناجاتهم تلبنة يتم ييونواا أن يريدون كذل ,ومعالجتها مشيييالتهم إلى االسييتما، يتم وأن ، موثوقة الشييركة تيون وأن ، جندة نوعنة ذات مشييترياتهم من وسيلسية ممتعة تجربة على الحصيو في الزبائن وينمل .رسيالتهم في الفضيلى مصيالحهم لديها الشيركة أن في الوثو على قادرين والعالمات الزبون امل بنن منطقنة عالقة توجد هل) باالتي البحث لمشيييلة الجوهري السييؤا يتمثل وبالتالي ,النهاية إلى البداية االفتراضنة التجارية ). الدراسة اهمنة االفتراضيي الشيرا يتطلب المتجر، في الشيرا عيس على مهًما األمل مفهوم ييون ، االفتراضينة الشيرا بعملنة الزبون يقوم عندما ا الزبون يحتاج ، ذل على عالوة المسييتهلينن أهداف تحقنق في األمل من معننا مسييتو عن والبحث الطاقة اسييتثمار إلى أيضييً باالتي يتمثل للبحث الرئنس االهداف فان وبالتالي بالشرا المتعلقة باألهداف المرتبطة المخاطر على مسارات : 1الذي بالشييل منها االسيتفادة للمسيوقنن يمين وكنف ,االفتراضينة التجارية والعالمات الزبون امل بنن العالقة طبنعة على التعرف منتجاتها على الطلب زيادة الزبائن وال كسب من المنظمة يمين . في وتوجهاتهم الزبون تطلعات يخدم بما االفتراضيينة التجارية العالمات بنا للمنظمات خاللها من يمين منطقنة صييورة توفنر -2 األنترننت استخدام واتسا، التينولوجي التطور ضل . االفتراضنة التجارية العالمات في وتنثنره الزبون أمل طبنعة دراسة -3 . الدراسة اهداف هي األخر الفرعنة واألهداف .االفتراضنة التجارية العالمات الزبون أمل تنثنر حو األدبنات مراجعة إجرا الى البحث يهدف : االفتراضنة التجارية العالمة على العمنل أمل تنثنر يعد الزبون هدف تحقنق إن . االفتراضنة التجارية العالمة على العمنل أمل تنثنر ينظم الزبون هدف تحقنق إن . 3االفتراضنة التجارية العالمات ، التزام على العمنل أمل تنثنر من يخفف الزبون هدف تحقنق إن . نظرية مراجعة american journal of business management, economics and banking volume 23 april 2024 p a g e | 29 www.americanjournal.org المسيارات تل السيتخدام المدرك الدافع جانب إلى ممتعة، ألهداف مسيارات إنتاج على المدركة القدرة بننه األمل يعرف :الزبون امل أفضيل غد إلى نسيعى تجعلنا التي الحناة سيمات من واألمل ,المنشيود الهدف لتحقنق (hardesty et al.,2009), النجاح يعني فاألمل الشيخ اإلحباط يضيع المقابل وفي الحناة في وسيعادة فرح هناك ييون أمل، هناك ييون فعندما ,للعنش سيبب هو األفضيل والمسيتقبل أمام ومحاصيييًرا أعز الفرد يجعل والننس ,بشيييننها قرار واتخاذ المختلفة المواقف تقننم يسيييتطنع ال حنث نشيييطة غنر حالة في ذل يتغنر أن المحتمل من الوقت، مرور ومع ,الضييييغوطات (fazal-e-hasan et al.,2018) قنام إلى األمل خنبة وتؤدي مرنة غنر تفينره طريقة أن كما لمشياكلهم، المقلقة العواقب في والتفينر دقنقة وغنر سيلبنة بطريقة باسيتمرار تجاربه بتقننم الشيخ الزبائن تصيورات تصيب وكنف متى سيؤا على المسيتهل ألمل النفسينة اآللنة تجنب و ,المشييلة حل من يمنعه شيي وال باليامل واليعيالميية اليزبييائين مين لييييل (اليتيجييارييية اليعيالميية مينيظيور مين) األدا وآثييار (اليزبيون مينيظيور مين) تيحييديييدًا أكيثير .(macinnis,2005)التجارية خطط) والطريقة (التحفنز) اإلرادة ميونات تتضيمن والتي اإلدراك على تركز التي الرئنسينة العاطفنة اآللنات أحد بننه األمل يعرف اإلنترنت عبر للزبائن الشيرا وإعادة الشيرا سيلوكنات شيرح في (العمل (fazal-e-hasan et al.,2018). يتم عاطفة هو واألمل وكالة توظنف األفراد من يتطلب األمل أن األمل سييينيولوجنة حو األبحاث أظهرت .النومنة الحناة في متيرر بشييييل اختبارها األهداف لتحقنق ومسيارات ناجحة (macinnis,2005). الدراسية لهذه مناسيبة اإلدراك على تركز التي العاطفنة األمل حالة وتعتبر لتحقنق أو تجياريية عالمية شييييرا أي معننية لمهمية النياج األدا في المشيييياركنن ليد األميل مسييييتوييات على للتركنز نظًرا العالمة عن راضيينًا ييون أن في للزبون األسيياسييي الهدف يتمثل ، الشييرا عملنات جمنع في .(hardesty et al.,2009)هدف يشيترونها التي التجارية (fazal‐e‐hasanاetاal.,2020).ا مع المسيتهلينن تجارب على عام بشييل التجارية العالمة رضيا يعتمد للعملنة المعرفنة االستجابة مستو إلى ويشنر الشرا عملنة (weber et al.,2021). في المشياركة دراسية تعتبر االفتراضينة التجارية العالمات مجتمعات في المشياركة تعد :االفتراضينة التجارية العالمات مجتمعات البنئاتا في متزايد بشييل يقع التجارية بالعالمات األفراد اتصيا /عالقة ألن والعملنة والنظرية بالسينا صيلة ذات االفتراضينة البنئات مثل االفتراضيينة facebook أو instagram أو linkedin أو airbnb أو amazon (lima et al.,2019). الفوائد وألن مجتمعاتا في المشياركة تعريف تم باسيتفاضية مناقشيتها تمت قد خارجها، أو اإلنترنت عبر الشيركات، مع العمال لتفاعل األمد طويلة قبل من االفتراضيينة التجارية العالمات (bahri-ammari et al.,2021) والعالمة المسييتهلينن بنن تفاعلنة تجارب" أنها على القوة مسيتويات بتقلب تتمنز نفسينة حالة , ."السينا على تعتمد تجارب" أنها على وأيضًيا "المجتمع في آخرين أعضيا أو/و التجارية سييلوكنة أو/و وعاطفنة معرفنة أبعاد على تشييتمل , (li et al.,2021). العالمات مجتمعات في المسييتخدمنن من العديد يشييارك التجارية العالمة تل خدمة أو منتج مع تجارب بالفعل لديهم ألن إما االفتراضييينة التجارية (hadi et al.,2023 ; jasim et al.,2023;hussein& jasim,2023; jasim et al.,2022; abbas et al.,2022) معرفية ويرييدون معقيد المنتج ألن أو اآلخرين المسييتخدمنن من أو الشييركة من سييوا عنه، المزيد (chiang et al.,2018). مجتمعاتا في المسييتهل مشيياركة إن والدعوة والتطوير والتعلم المشياركة تشيمل التي الفرعنة العملنات من العديد على تشيتمل عملنة هي االفتراضينة التجارية العالمات االجتماعي والتواصل (wu& fang,2010). بيالعالمية الفعيا االلتزام االفتراضيييينية التجياريية العالميات مجتمعيات في المسييييتهلي لمشيييياركية اإليجيابنية العواقيب وتضييييمن العالمة اسيييتخدام وننة الذاتنة التجارية العالمة واتصييياالت , اإليجابي الشيييفهي اليالم .(rosenthal&brito,2017)التجارية العمال معرفة وقنمة والتمينن والرضيييا والوال والثقة, التجارية (hollebeek et al.,2017). في المسيييتهل مشييياركة تعد العمال لعالقة مركزيًا مفهوًما االفتراضيييينة التجارية العالمات مجتمعات (brodie et al., 2013). التجارية للعالمات يمين الترفنه مسيتويات مثل المحتو خصيائ إدارة خال من التجارية العالمات صيفحات في المشياركة من متزايدة مسيتويات تعزيز الموجه المحتو -العالقة أو (ممتع/وظنفي) المحتو على تركز التي المنشييورات خال من أو والتفاعل والحنوية، والمعلومات، الذات نحو الموجه المحتو أو ،(المستخدمنن/التجارية العالمة مع التفاعالت) (kaur et al.,2020). سابقة دراسات مراجعة أسير، اإلنترنت عبر الشيرا جعل إلى التينولوجي التقدم أد كما ملحوظ، بشييل اإلنترنت عبر الشيرا نما األخنرة، السينوات في كبنر حد إلى وأسييهل (rosqvist&hiselius, 2016), العالمات بها تنخرط التي الطريقة اإلنترنت عبر الثورة هذه غنرت لقد العمال تصييورات ألهمنة أفضييل فهم إلى المسييوقنن حاجة إلى المتزايدة المنافسيية أدت وقد معهم، وتتفاعل عمالئها مع التجارية اإلنترنت عبر الشيرا عند العاطفنة واالسيتجابات (colton, 2012), على قادرين العمال أصيب مضيى، وقت أي من أكثر اآلن التجارية بالعالمة المتعلقة المعلومات وتحلنل البحث (boyd et al, 2014)، على يعتمدون فإنهم اإلنترنت عبر الشيييرا وعند سييلوك يدفع مما التجارية، العالمة رضييا على العاطفنة االسييتجابات هذه تؤثر .التجارية للعالمة العاطفنة واسييتجاباتهم تصييوراتهم american journal of business management, economics and banking volume 23 april 2024 p a g e | 30 www.americanjournal.org خال من انه الى اجراها التي الدراسيية في (bazrafkan et al.,2020) وتوصييل .(fazal-e-hasan et al.,2019) الشييرا عواقب إلى يؤدي وهذا والعمال ، التجارية العالمة بنن بالعالقة معرفتنا تزداد االتصيياالت، تبادالت في المسييتهل أمل دور تقننم التي التجارية العالمة قنمة بنن االفتراض تم .التجارية للعالمة الوال من أعلى مسيتويات لتحقنق اإلنترنت عبر التجزئة تجار على كل إن ويقا .المسيتهل أمل على إيجابي تنثنر لها سينيون (والعاطفنة االجتماعنة واألبعاد والسيعر الجودة حنث من) العمنل يراها من أعلى مسيتويات إلى يؤدي وبالتالي الشيرا ، وعواقب التجارية العالمة في العمال ثقة من يزيد القنمة من األنوا، هذه من نو، سياهم بننما .العواقب هذه مثل تحقنق في األمل (asghari sarem& ghobadi lamouki,2021) المعاشية التجربة وصيف في مفاهنمنةا وبننة نموذج تقديم ثم ومن العمال ، أمل وميونات أبعاد لمعرفة والسيييعي كنشيييافارزي، بن خدمات في العمال ألمل في المشيياركنن أقوا تحلنل في يسيياهم المسييتدامة العمال عالقات وإدارة إلنشييا المناسييبة األسييالنب وضييع ان والحظ ,للدراسيية ًا" كان الدراسيية، ًا واضييحا ًا "وجلنا من تخطنط إلى يحتاج المصييرفنة الخدمات في واألمل األمل بنن اعتقادهم على أجمعوا أنهم تماما ذل في بما رئنسينة، محاور شييل على األمل وعناصير هنيل تنفنذ أجل ومن كنشيافارزي، بن في .والتركنز واالنتباه المراقبة أجل وأخنرا كنشييافارزي بن في الخدمة جودة إدارة نظام من مسييتمد األمل فإن كنشييافارزي، بن في األخالقنات من المسييتمد األمل ، " المواضيينع ظهور ظل في ينتي واألمل األمل تحقنق أن وأكدوا كنشييافارزي، بن في العمال وتوجنه االبتيار من مسييتمد األمل البن مع العالقة استمرار إلى وسنؤدي المذكورة . قام بننما (ghobadi et al.,2023) العمال وتوجنه األخالقنات أسياس على العمال أمل نموذج وشيرح تصيمنم بنن العالقة بدراسية في كبنر دور لها كنشييافارزي بن في الخدمة جودة وإدارة العمال وتوجنه األخالقنات أن ان الى وتوصييل ,الخدمة جودة وإدارة بن ا خدمات في العمال أمل وصييييف يمين :الخالصيييية .البحث نموذج على الموافقة وتمت البن لهذا العمال توقعات هنيل بن ا في الخدمة جودة إدارة نظام من المسيتمد واألمل كنشيافارزي، بن أخالقنات من المسيتمد األمل :جوانب ثالثة من كنشيافارزي قام كما .كنشيافارزي بن في العمال وتوجنه االبتيار من المسيتمد واألمل كنشيافارزي، (li et al.,2021) إلى التفاعل من بدراسية الغرض وكان ,االفتراضيينة التجارية العالمة مجتمع في المتصييورة والقنمة االجتماعنة المقارنة دور :التجارية العالمة تفضيينل التجارية العالمة تفضيينل على يؤثر االفتراضيينة التجارية العالمة مجتمع في المتصييور التفاعل كان إذا ما الدراسيية من الرئنسييي التجارية للعالمة المسييتدامة التنمنة لتحقنق ذل وكنفنة (jasim et al.,2024). ونختبرها نظريًا نموذًجا نقترح الدراسيية، هذه في أن الدراسية تؤكد .الصينن في اإلنترنت عبر التجارية العالمات مجتمع أعضيا من جمعها تم التي البنانات تحلنل خال من تجريبنًا االجتماعنة القنمة تؤثر (2) المعلوماتنة والقنمة العاطفنة، والقنمة االجتماعنة، القنمة على إيجابي تنثنر له المدرك التفاعل (1) بشييلا تخفف التصياعدية االجتماعنة المقارنة (3) التجارية العالمة تفضينل على إيجابي بشييل المعلوماتنة والقنمة العاطفنة والقنمة تنثنرا من سيلبي بشييل تخفف الهبوطنة االجتماعنة المقارنة أن حنن في االجتماعنة، القنمة على المتصيور التفاعل تنثنر من إيجابي في التجارية العالمة مجتمع في المتصيور التفاعل دور على الضيو الدراسية هذه سيلطت .االجتماعنة القنمة على المتصيور التفاعل التجارية العالمات إدارة وممارسة للبحث ومهمة موثوقة رؤ تقدم النتائج أن نعتقد ونحن .التجارية العالمة تفضنل تعزيز . الدراسيات في تعمنمه تم حنث التجارية، العالمات بنن الشيرسية المنافسية في مسيتدامة تنافسينة منزة التجارية العالمة تفضينل يعد التجارية للعالمة الوال لتشييينل مهمة كوسيينلة التسييويقنة (chinomona et al.,2013)، المسييتهل لد الشييرا ننة وتعزيز ، السيلوكنات .اإليجابنة األمور من وغنرها الشيفهنة، اإليجابنة واليلمة (boubker& douayri,2020). بحاجة تجارية عالمة وكل التطور بسيبب تتزايد المنتجات بنن التشيابه أوجه فإن ذل ، ومع .المنافسينن منتجات من بدالًا الخاصية منتجاتها المسيتهليون يفضيل أن للمسيييتهليننا بالنسيييبة فقط الوظنفنة السيييمات أسييياس على المنتجات بنن التمننز صيييعوبة ويزداد المعلومات، لشيييبية السيييريع (petruzzellis,2010). الدور على التنكند تم ،[7،6] تفاعلنة بنئة تخلق التي االجتماعي، التواصييل لوسييائل الواسييع التطبنق مع نموذج في المسييتهل لد القرار صيينع عملنة في واالتصيياالت للتفاعالت الرئنسييي sicas خطوات خمس من يتيون الذي : المسيتهلينن لتشيجنع جهدها قصيار الشيركات بذلت وهيذا، .والمشياركة والعمل والتواصيل االتصيا والتفاعل، واالهتمام اإلحسياس العالمية مجتمع بنيا مثيل التجياريية، والعالمية العمال بنن العالقيات على للحفياظ والمنتجيات التجياريية العالميات مع التفياعيل على وعالوة ,التجارية للعالمة الوال على الحفاظ و إلنشيا المبيرة والمرحلة األسياس وهو التجارية، العالمة تفضينل لتشيينل التجارية، المسييتدامة التنمنة في يسيياعد ما وهو التجارية للعالمة التنافسيينة القدرة في حاسييًما عنصييًرا التجارية للعالمة الوال يعد ذل ، على التجارية للعالمة (naidoo& hollebeek,2016). للشيركات مهمة تسيويقنة أداة أصيب االفتراضينة التجارية العالمات مجتمع ان دراسيته في ير (shiyong et al.,2022) اما . الدراسييات أن من الرغم على .المسييتهلينن من كبنًرا عددًا الناجحة التجارية العالمة مجتمع تسييويق اسييتراتنجنة تجتذب أن يجب سيؤا على اإلجابة في فشيلت أنها إال االفتراضينة، التجارية العالمات مجتمعات في للمشياركة المسيتهلينن دوافع عن كشيفت السيابقة هذه مثل أخر مجتمعات يواجه بننما المسييتخدمنن جذب االفتراضيينة التجارية العالمات مجتمعات بعض على يسييهل لماذا :مهم american journal of business management, economics and banking volume 23 april 2024 p a g e | 31 www.americanjournal.org في للمشياركة المسيتهل دافعنة تحدد التي المهمة العوامل من المنتج خصيائ تيون أن المفترض من الدراسية، هذه في الصيعوبة تؤثرا أن (المنتج ورضييا المنتج، ورمزية المنتج، تعقند المثا ، سييبنل على) المنتج لخصييائ يمين .التجارية العالمات مجتمعات المنتج تعقند أن االسييتبنانات نتائج تظهر .التجارية العالمات مجتمعات في المسييتهلينن مشيياركة فعالنة مد على مباشيير بشيييل بالذكر والجدير .التجارية العالمات مجتمعات في المشاركة في المستهلينن رغبة على إيجابي تنثنر لها المنتج ورضا المنتج ورمزية إضيعاف إلى المنتج اسيتخدام من الطويلة الفترة تؤدي .المنتج ورمزية المنتج رضيا تنثنر على منظم تنثنر لها المنتج اسيتخدام مدة أن من طويلة فترة فإن ذل ، من العيس على .التجارية العالمات مجتمعات في المشياركة في المسيتهلينن رغبة على المنتج رضيا تنثنر الدراسية هذه تعمل .التجارية العالمات مجتمعات في المشياركة في المسيتهلينن رغبة على المنتج رمزية تنثنر تعزز المنتج اسيتخدام مجتمعات من االسييتفادة إلى تهدف التي الشييركات على آثار ولها التجارية العالمات مجتمع بمشيياركة المتعلقة األدبنات إثرا على التسويق في التجارية العالمات . ير بننما (chapman& dilmperi,2022) طر تحديد في يتمثل الفاخرة التجارية العالمات تواجهه الذي المسيتمر التحدي ان إضيافتها تتم الفائقة القنمة أن السيابقة األبحاث أبرزت وقد .تفرضيه الذي المرتفع السيعر عن والتعويض عروضيها، إلى قنمة إلضيافة أبحاث هناك ذل ، ومع .للعرض فريدة تجارب وتقديم إنشييا في المشيياركة خال من التجارية والعالمات العمال يتعاون عندما التجارية العالمات مجتمع مشياركة تعد .اإلنترنت سينا في القنمة خلق في وعمالئها التجارية العالمات مشياركة كنفنة حو محدودة خمسية بإجرا قمنا الفاخرين، العمال قنمة وإطار السيائد الخدمة منطق على وباالعتماد .العملنة هذه في أسياسينًا أمًرا اإلنترنت عبر لمجتمعهاا شيبينة دراسية تلنها الفاخرة، للفناد التجارية العالمات إحد عمال مع مقابلة وخمسينن المديرين مع متعمقة مقابلة عشير المحتو أن النتيائج تظهر .اإلنترنيت عبر للقنمية المشييييترك اإلنشييييا ييدعم تصييييننف تطوير إلى هيذا ويؤدي .اإلنترنيت عبر داخل ناجحة محتو اسييتراتنجنة لبنا التجريبي المنهج اسييتخدام فائدة الدراسيية تعزز .مشيياركة نسييبة أعلى يوفر التجريبي/الممتع اإلنترنت عبر الفاخرة المجتمعات . في المسيتهلينن مشياركة األبحاث من كبنر قدر تناو االجتماعي، التواصيل وسيائل انتشيار مع ان (santos et al.,2022) وجاد هذا ألهمنة ونظًرا .الظاهرة لهذه شييامل فهم إلى نفتقر فإننا ذل ، ومع .االجتماعي التواصييل لوسييائل التجارية العالمات مجتمعات الموضيو، هذا حو للبحث الحالي الوضيع تلخن إلى الدراسية هذه تهدف المعلومات، نظم مجا في للباحثنن ومال مته الموضيو، مشيياركة ودرسييوا متنوعة تعريفات الباحثون اعتمد ذل ، إلى باإلضييافة الوصييفي، البحث منهج باتبا، .البحثنة الفجوات وتحديد ا تحلنلنا يوضيي .والتحفنزية والسييلوكنة السييلوكنة األبعاد باسييتخدام المسييتهل ونظرية واإلشييباعات االسييتخدامات نظرية أن أيضييً واقتراح تياملي إطار باقتراح دراسيتنا نختتم وأخنراًا .السيابقة الدراسيات في إلنها المشيار النظريات أكثر كانتا االجتماعي التعريف المستقبلنة البحثنة والتوجهات البحثنة الفرص . (والسييلوكنة المواقفنة) التجارية للعالمة الوال بنا في المجتمع تحديد تنثنر بدراسيية (confente& kucharska,2021) وقام تحديد يؤدي أن يمين وكنف الرئنسينة المجتمع تحديد سيوابق المقترح النموذج وأوضي .االفتراضينة الشيخصينة التجارية والعالمة دوافع ثالثة وتحدد واإلشيباعات االسيتخدامات لنظرية النظرية العدسية الدراسية هذه تتبنى .والمسيتهل الشيركة أدا تحسينن إلى الهوية محتو نحو الموجهية واليدوافع اليذات، نحو الموجهية واليدوافع العالقيات، نحو الموجهية اليدوافع :المجتمع هويية لتحيدييد تحفنزيية خال من جمعها تم مالئمة عننة على باالعتماد الهنيلنة المعادلة نمذجة طريقة باسييتخدام البنانات تحلنل تم وقد .التجارية العالمة منظور على بنا ًا االجتماعي، التواصيل لوسيائل النشيط االسيتخدام نتائج حو المعرفة نطا توسينع على الدراسية هذه تعمل .المسي ugt. وهو الشيخصينة، التجارية بالعالمة المجتمعنة الهوية يربط فهو ذل ، جانب إلى .بالوال ومحركاته المجتمع هوية يربط فهو محرًكا تمثل الذات نحو الموجهة الدوافع أن إلى النتائج تشينر .االجتماعي التواصيل وسيائل مسيتخدمو يتوقعها حنوية نتنجة يعتبر ما بدالًا المواقفي الوال لبنا مهمة سيابقة المجتمعنة الهوية تحديد يمثل ذل ، إلى باإلضيافة .اإلنترنت عبر مجتمع في للمشياركة رئنسينًا للمستخدم الشخصنة التجارية العالمة لبنا مهم محرك هو المجتمع تحديد أن أيًضا وجد لذل ، ونتنجة .السلوكي الوال من . االفتراضنة التجارية العالمة ومجتمعات الزبون امل بنن العالقة رضيا يعتمد , يشيترونها التي التجارية العالمة عن راضينًا ييون أن في للزبون األسياسيي الهدف يتمثل الشيرا ، عملنات جمنع في قد الزبائن أن , للعملنة المعرفنة االستجابة مستو إلى ويشنر الشرا عملنة مع المستهلينن تجارب على عام بشيل التجارية العالمة تلبنة يتم عندما ، المدركة المرتبطة بالجهود مقارنة االفتراضيينة التجارية للعالمة المدركة الفوائد تزداد عندما بالرضييا يشييعرون معلوماتا االفتراضنة الشرا سنا في المتوقعة الفوائد مسيتو تحدد التي العوامل وتشيمل ,المسيتهلينن تجاوز أو الفوائد أو التوقعات (األمل مثل) اإليجابنة والمشياعر المدركة والمخاطر والراحة المنتج (ranjan et al.,2021). ما حد إلى األسيهم نظرية توضي الوقت نفس وفي ,مهمة التباد في للزبائن المتوقعة والتيالنف فالمياسيب ,الرضيا في يلعبه أن الزبون ينمل الذي الدور شيرح نحو ، american journal of business management, economics and banking volume 23 april 2024 p a g e | 32 www.americanjournal.org التجارية العالمة رضيا على حصيوله لضيمان التجريبنة للقنمة عمل وخطة الحافز بعض إلى الزبون يحتاج (fazal-e-hasan et al.,2018). النتائج مناقشة وأصيبحت كبنًرا، نمًوا اإلنترنت عبر الشيرا عملنة شيهدت األخنرة، السينوات في انه يلحظ السيابقة االدبنات عرضيته ما على وبنا ا اإلنترنتا عبر الشيرا عند العاطفنة واسيتجاباتهم العمال تصيورات فهم يعتبر .التينولوجي التقدم بفضيل وأسيهل أسير، الشيرا عملنة بها المرتبطة والعواطف والثقة التجارية العالمة قنمة .التجارية للعالمة والئهم وزيادة العمال رضييا لتحسيينن للشييركات هاًما أمًرا أملهم يشيتقون العمال أن يلحظ ذل اثر وعلى .التجارية والعالمة العمنل بنن العالقة وتعزز المسيتهل أمل على إيجابي بشييل تؤثر في المتصيور التفاعل تنثنر على تركز الثاننة الدراسية .العمال وتوجنه الخدمة جودة إدارة ونظام البن في المتبعة األخالقنات من على إيجابي بشييل يؤثر المتصيور التفاعل أن الدراسية أظهرت .التجارية العالمة تفضينل على االفتراضينة التجارية العالمة مجتمع الدراسية توصيي .التجارية العالمة تفضينل على بدورها تؤثر القنم هذه وأن المعلوماتنة، والقنمة العاطفنة والقنمة االجتماعنة القنمة التجارية للعالمة المستدامة التنمنة وتحقنق التجارية العالمة تفضنل تعزيز في المتصور التفاعل دور تراعي أن يجب الشركات بنن . المسيتهلينن لد الشيرا ننة لتعزيز مهمة أداة يعد التجارية العالمة تفضينل ان السيابقة الدراسيات عرضيتها التي النتائج تشينر كما يعتبرا .الشييرس التنافس سييو في المتشييابهة المنتجات بنن التمننز في التحدي يزداد ذل ، ومع .التجارية للعالمة الوال وتشييينل تحقنق يتم .التجارية العالمة تفضينل لتعزيز حاسيمة أداة االجتماعي التواصيل وسيائل عبر المسيتهلينن مع الفعا واالتصيا التفاعل بالوال ا التجارية العالمة تفضيينل يتنثر .المسييتهلينن مع والمشيياركة التفاعل وتشييجنع التجارية العالمة مجتمع بنا خال من ذل التنافسي التفو وتحقنق التجارية للعالمة المستدامة التنمنة في حاسًما عنصًرا يعتبر وهذا التجارية، للعالمة . في المسيتهلينن رغبة على إيجابي تنثنر لها عنه، المسيتهل ورضيا ورمزيته المنتج تعقند مثل المنتج، خصيائ أن إلى النتائج تشينر رغبة على ورمزيته المسيتهل رضيا تنثنر على تؤثر المنتج اسيتخدام مدة أن ياُلحظ كما .التجارية العالمات مجتمعات في المشياركة التجارية العالمات بمجتمعات المتعلقة األدبنات إثرا في تسياهم الدراسية .التجارية العالمات مجتمعات في المشياركة في المسيتهلينن التسويقنة جهودها في التجارية العالمات مجتمعات استخدام إلى تهدف التي للشركات للتطبنق قابلة توصنات وتقدم . األسييعار وتعويض منتجاتها إلى قنمة إلضييافة طر إيجاد في الفاخرة التجارية العالمات تحدي على السييابقة الدراسييات وتركز تجارب إنشييا في التجارية والعالمات العمال يتعاون عندما إضييافتها يمين الفائقة القنمة أن إلى السييابقة األبحاث تشيينر .المرتفعة يعتبر .اإلنترنت عبر القنمة خلق في وعمالئها التجارية العالمات مشيياركة كنفنة حو البحوث في نق هناك ذل ، ومع .فريدة لعالمة والعمال المديرين مع مقابالت بإجرا الدراسية قامت .العملنة هذه في أسياسينًا جزً ا اإلنترنت عبر التجارية العالمات مجتمع يعزز والممتع التجريبي المحتو أن إلى الدراسية توصيلت .اإلنترنت عبر لمجتمعها شيبينة دراسية وأجرت فاخرة، فندقنة تجارية لبنا توجنهات وتوفر اإلنترنت عبر المجتمعات من الفاخرة التجارية العالمات اسيييتفادة في الدراسييية تسييياهم .المشييياركة نسيييبة المجتمعات تل داخل الناجحة المحتو استراتنجنات . إلى السيابقة األبحاث تشينر .االجتماعي التواصيل وسيائل عبر التجارية العالمات مجتمعات في المسيتهلينن مشياركة الدراسية تتناو منهج باسيتخدام .البحثنة الفجوات وتحديد الحالنة البحوث تلخن إلى الدراسية تهدف ولذل الظاهرة، هذه فهم في فجوات هناك أن أن أيضًيا الدراسية توضي .وتحفنزية وسيلوكنة سيلوكنة أبعاد باسيتخدام المسيتهلينن مشياركة بدراسية الباحثون قام الوصيفي، البحث السابقة الدراسات في استشهادًا األكثر النظريات هي االجتماعي التعريف ونظرية واإلشباعات االستخدامات نظرية . التنفنذ والنات التوصنات هي التوصنات من جملة تحديد يمين تقدم ومما : ًا تولي أن الشييركات على ينبغي وتعزيز اإلنترنت، عبر الشييرا عند العاطفنة واسييتجاباتهم العمال تصييورات لفهم كبنراًا اهتماما التجارية بالعالمة المرتبطة اإليجابنة والعواطف المتصور التفاعل . للعالمة تفضيينلهم وزيادة العمال اهتمام إلثارة خدماتها أو منتجاتها في ومبتير جديد شييي لتقديم تسييعى أن الشييركات على ينبغي .التجارية التجارية للعالمة رؤيتهم لتعزيز الجمهور مع ويتفاعلون واسييعة بمتابعة يتمتعون الذين المؤثرين مع التعاون الشييركات على ينبغي بها الوعي وتعزيز . للتواصييل القنوات من وغنرها والمدونات اإلليتروني والبريد االجتماعي التواصييل وسييائل من االسييتفادة الشييركات على ينبغي العمال مع والتفاعل المستمر . خال من ذل تحقنق يمين .للعمال وأسيهل أسير، وجعلها اإلنترنت عبر الشيرا عملنة تحسينن على العمل الشيركات على ينبغي ومريحة سلسة تسو تجربة وتقديم المستخدم واجهة تبسنط . american journal of business management, economics and banking volume 23 april 2024 p a g e | 33 www.americanjournal.org الدراسيات تسياعد أن ويمين .اإلنترنت عبر الشيرا عملنة أثنا العاطفنة واسيتجاباتهم العمال تصيورات فهم الشيركات على ينبغي وتعززا التصيورات لهذه تسيتجنب تسيويقنة اسيتراتنجنات تطوير ثم ومن فنها، المؤثرة والعوامل التصيورات هذه تحلنل في واألبحاث العمال رضا . من ذل تحقنق يمين .المسييتهلينن مع والمشيياركة التفاعل وتعزيز االفتراضييي التجارية العالمة مجتمع بنا الشييركات على ينبغي والتفاعل المشاركة على المستهلينن يشجع وممتع تجريبي محتو وتوفنر االجتماعي التواصل وسائل استخدام خال . أخالقنات تبني خال من ذل تحقنق يمين .بها المرتبطة والعواطف الثقة وبنا التجارية العالمة قنمة تعزيز الشييركات على ينبغي العمال رضا وتحقنق الجودة عالنة خدمة وتقديم العمل في قوية . من ذل تحقنق يمين .المرتفعة األسييعار وتعويض منتجاتها إلى قنمة إلضييافة طر إيجاد الفاخرة التجارية العالمات على ينبغي فائقة قنمة وتقديم فريدة تجارب إنشا في العمال مع التعاون خال . تحقنق يمين .االجتماعي التواصيل وسيائل عبر التجارية العالمات مجتمعات في المسيتهلينن مشياركة تعزيز الشيركات على ينبغي والمشاركة المشاركة على المستهلينن وتشجنع وتفاعلي جذاب محتو توفنر خال من ذل . والمراجع المصادر abbas, z. m., idan, a. r., & al-mofraje, s. a. 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(2010). the effect of consumer-to-consumer interactions on idea generation in virtual brand community relationships. technovation, 30(11-12), 570-581. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 126 www.americanjournal.org improvement of theoretical, methodological and objective system methodology in the analysis of sustainable development kalandarova nargiza narimanovna, ph.d., associate professor tashkent state university of economics , "economic analysis" department independent researcher nargis-nk85@mail.ru a b s t r a c t k e y w o r d s there are certain problems that require scientific research in terms of developing a methodology for a set of methods for assessing, analyzing and forecasting the stability of economic activity of economic entities. it is urgent to partially eliminate the shortcomings in the theory and methodological rules of the comprehensive economic analysis of the stability of the development of the economic entity. stability, financial stability, concept of stability, principles of stability, sustainable development, financial situation, export, import, types of stability, method of analysis. introduction strategic programs have been developed for the implementation of reforms in all aspects of social and economic changes in the republic of uzbekistan, primarily in the economic sphere. these programs are considered important in achieving stability and broad integration into the world community. therefore, the main factors in achieving economic and financial stability are the increase in the volume of production, the decrease in the inflation rate, the increase in export transactions and the growth of other influencing factors.sustainable development of economic sectors of our republic is one of the main tasks. it is necessary to pay attention to all aspects of the production process, including accounting, auditing and economic analysis, in order to ensure the continuous stability of economic entities. further expansion of market relations requires further acceleration of economic reforms in the sector. therefore, improving financial stability indicators and their analysis, developing concepts for the structure and changes of all sectors, developing a target form of financial and economic situation study and control, and decision-making are among the important tasks of today. these cases are being focused on the analysis of stability indicators in our republic in the following years.today, there are a number of problematic aspects of the sustainable development of the economy that need to be determined, including: – significant delay in regulatory and legal support of standards in the implementation of strategic american journal of business management, economics and banking volume 21 february, 2024 p a g e | 127 www.americanjournal.org management; contradictions in the regulation of the production process at the macro and micro level by the economic entity; the need to ensure timely adaptation of state regulatory instruments and appropriate institutional reforms; provision of mechanisms that help the economy maintain the necessary balance; formation of effective methodological aspects that ensure sustainable development of economic entities and the study of the achieved level. review of literature on the subject. today, many of our economists have expressed their opinions on sustainability indicators in their scientific works. in particular, according to a. shlichter, "the concept of sustainable development in the practice of production enterprises is becoming a new paradigm for their existence. in the process of creating value chains, business solves the most important problems for society, such as the rational use of natural resources, the protection of natural habitats, and human health and safety. as a result, they themselves become more resilient and successful" [9]. according to i. bashmakov, "the main factor of sustainable development is investing in priority social projects in the fields of health and sports, education and science, development of social infrastructure" [3]. according to e. nekhoda, n. radchikova, n. tyulenev, "from a static point of view, corporate stability is understood as a set of financial and economic activity indicators of the organization. the dynamic approach allows them to express the point of view that corporate stability is the ability of the organization to respond correctly to the influence of factors outside its control and surrounding it" [7]. according to e.akromov, "to determine the level of financial stability, it is recommended to determine reserves and costs or material working capital in proportion to the sources of their formation" [2]. m.pardaev and b.israilov expressed the opinion that "it is recommended to study the indicators expressing financial stability in groups according to their economic essence"[4]. by u.nurmanov "correct formation of financial resources in the enterprise, their distribution, efficiency of use is an important factor of ensuring financial stability. that is, financial stability represents how skillfully the company manages financial resources" [7] he noted. according to n. khajimuratov and others, "it is possible to evaluate the financial status of the enterprise in the short and long term. in the short-term period, the company's solvency is more important than its financial stability in the long-term study" [8].based on the above, in our opinion, financial stability means that the financial status of economic entities remains at the same level and does not decrease. financial stability reflects the results of all aspects of the economic entity's activity, and those who have achieved financial stability have the following characteristics: operating in various conditions of economic relations; free movement of funds of the economic entity; matching financial resources to market requirements; the state of financial resources can ensure production development and solvency, creditworthiness; production reserves and costs covered by resources. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 128 www.americanjournal.org research methodology during the research, systematic analysis, statistical groups and comparative analysis, complex analysis, expert evaluation and other methods were used. analysis and results in general, the concept of sustainable development of funds is recognized as the basis of social development in terms of its main components: economic, environmental, social, institutional and informational. based on the problematic aspects of the implementation of the concept of sustainable development, the need to determine the conditions for the development of enterprises in relation to the components of sustainable development was divided into five groups. that is: economic the focus of the country's development strategy on the export of raw materials, the level of high-risk production, the modernization of treatment facilities, the lack of a real system of monitoring the quality of atmospheric air, etc. processes of optimization of the necessary conditions for abandoning the functioning of social educational and healthcare systems as free zones, a decrease in the level of ethical and moral relations in society, etc. environmental lack of coordinated compliance with environmental standards among countries, lack of agreements to inform the world community on environmental issues, etc. institutional ensuring transparency in the relations of the economic entity with other organizations and institutions, facilitating the use of the provided services, eliminating corruption, etc. the researches of economists are mainly aimed at determining the internal and external contradictions existing in the activity of systems, as well as the factors influencing their management. one of the important tasks is to study the theoretical, methodological and objective tools of the system of analyzing the sustainable development of the economic entity. business prosperity is largely determined by the sequence of administrative decisions made by the company's management. however, the decision made by many managements is not sufficiently justified from an economic point of view. monitoring of the sustainable development of an economic entity is not always carried out by analysts. during the analysis of indicators, experts do not use various methodological tools suitable for the digital economy. a more operational analysis is carried out, with the help of which only reserves in the farm are determined. at the same time, stakeholders are essential in management and economic decision-making, not only for decision, but also for forecasting activities regarding future economic, social and environmental behavior. therefore, it is necessary to conduct not only an operational analysis, but also a strategic analysis. some economists associate obtaining such data with conducting business analysis. it is based on methodological tools for a comprehensive study of the problematic issues of economic, ecological and social development of business and its impact on the quality of life.from the conducted research, we can see that we believe that the procedure for analyzing sustainable development of a business entity should include two financial and management subsystems (figure 1). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 129 www.americanjournal.org figure 1. the procedure for analyzing the sustainable development of an economic entity1 we can evaluate the sustainable development of an economic entity not only by quantitative indicators obtained from the results of financial analysis, but also by qualitative indicators determined during management analysis. it can be concluded that it is possible to make decisions about the sustainable development of an economic entity only by applying financial and management analysis and sophisticated methods. based on the identification and study of individual parts of the topic being analyzed, we can forecast the future of the economic entity with information about its sustainable development. the development of an economic entity is influenced by various factors determined by the state of the external environment in three directions economic, ecological and social conditions. in order to successfully analyze the sustainable development of an economic entity, it is related to its correct definition, understanding of the goals and tasks ahead, and adherence to certain principles. therefore, based on the results of the research, we found it necessary to develop an author's concept for the analysis of the sustainable development of the economic entity: the essence of the analysis is to describe the type of economic analysis of the activity of the economic entity and its ability to provide; the principles of the analysis are the complexity of the analysis, ensuring comparability, ensuring the optimal number of evaluated indicators, data reliability, etc.; the subject of analysis is business processes of economic entities and their functional subsystem 1 author development operational analysis strategic analysis aretrospective analysis f in an ci al a n al y si s sustainable development of the enterprise (the multifaceted process of making changes within the studied system, which describes its ability to ensure progressive, dynamic growth, while maintaining balance and balanced components in the present and near future, has the ability to correct negative situations, and also affect the external boundaries of the system) operational analysis strategic analysis aaretrospective aanalysis m an ag em en t an al y si s american journal of business management, economics and banking volume 21 february, 2024 p a g e | 130 www.americanjournal.org activities; objects of analysis all types of stability of the economic entity; determination of the purpose of the analysis to provide the date of the report and its stakeholders with information about the achieved development; analytical issues proposing an assessment of the achieved level of development of the economic entity; subjects of analysis analysts, financial managers, etc.; the information base of the analysis is legislation and regulatory legal documents; internal local documents of the organization; accounting reports and so on; measurement of information during the analysis in kind, labor, money; methodological guides in the analysis strategic planning method, avc analysis, integral method, indicator method, etc.; the availability and level of openness of the materials is open to analysis public organizations, with the exception of the part where the disclosure of information may cause economic losses or damage to its business reputation.in the global economic environment, the economic entity is accumulating problems that need to be solved in the field of achieving sustainable development. currently, along with economic, environmental and social issues, there is a need to solve the problems of the development of institutional and information business entities. during the research work, economic entities identified issues that require solving within all components of sustainable development. in addition, the complex of external and internal conditions for the development of economic entities in connection with the economic, social, environmental, institutional and informational components of sustainable development was studied. it should be noted that achieving a high level of sustainable development of economic entities requires solving the problems arising in relation to all components. it is impossible to selectively focus on solving some existing problems, because only a comprehensive approach to solving issues of achieving a high level of sustainable development is able to fully meet the development needs of not only business structures, but also the entire business community. summary summarizing the results of the research, the formation of the concept of sustainable development of economic entities is considered a situation imposed on ecosystems, while ignoring the ecological and social consequences of making necessary economic decisions. the essence of this concept is to ensure the balanced development of society within three interrelated components: economic, social and ecological components. and then the influence of this concept unites both the community and the business community. in addition, the fourth component of sustainable development of economic entities institutionalization, which is manifested at the organizational level through the effectiveness of corporate management, appeared. the idea behind the concept of sustainable development was to maintain the resource potential in a suitable condition for the use of future generations, while ensuring a high level of responsibility for the results of human life for present and future generations. at the initial stage of the emergence of the concept of sustainable development in the country, american journal of business management, economics and banking volume 21 february, 2024 p a g e | 131 www.americanjournal.org along with the recognition of global environmental problems, issues of economic development, as well as the standard of living, were approved. in the second stage, the concept of sustainable development became widespread among scientists and business circles. also, institutions of mutual cooperation in the field of sustainable development, international standards and guidelines have begun to be formed, opinions on social responsibility have been expressed. the third stage of the implementation of the ideas of the concept of sustainable development was carried out in the form of the formation of the conceptual foundations of corporate sustainability. the period under consideration was characterized by the stability of ideas, and as a result of not only economic, social, but also environmental attention at the micro level, it helps to achieve the most important goals. later, the concept of sustainable development moved to the conditional fourth stage, within which there is an increased interest in solving the problems of sustainable development, including solving the issues of social investments in the implementation of the dimension of sustainable development. in addition, the scientific community began to raise issues of the formation of sustainable business models in the economy. researchers began to attract institutions that can meet modern requirements, taking into account the functions they perform and the results achieved. economic, environmental and social development difficulties of business entities cannot be overcome without analyzing their sustainable development, and it is a type of economic analysis of activity, which allows to identify changes in the studied system. it also describes its ability to provide progressive, dynamic growth, while equalizing negative impact within and outside the system, maintaining balance and balanced components now and in the near future. in the process of research, it is important not only to formulate the concept of "sustainable development analysis", but also to determine its purpose, tasks, objects, subject and other elements reflected in it. references 1. decree of the president of the republic of uzbekistan dated september 11, 2023 on the "uzbekistan-2030" strategy no. pf-158. 2. akromov e. "analysis of the financial situation of the enterprise". t.: "finance", 2003. 3.bashmakov, i. energy of russia: strategy of inertia or strategy of efficiency / i. bashmakov // questions of economics. – 2007. – no. 8. – b. 95-198. 4.pardaev m.q., israilov b.i. "economic analysis". study guide. t.: 2012. 5.shoghiasov t.sh. "complex economic analysis". darslik, t.: 2012. 6.nekhoda e.v. business models of companies: from profit to sustainable development and value creation / e.v. nekhoda, n.a. radchikova, n.a. tyuleneva // manager. – 2018. – t.9. no. 4 – b. 919. 7.nurmanov u. "economic analysis". electronic study guide. tashkent, 2023. www.tfi.uz 8.khadzhimuratov n. etc. "financial analysis". study guide. lesson press, 2022. 9. shlichter a. business strategy company and sustainable development in context / a. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 132 www.americanjournal.org 10.schlichter // mirovaya ekonomika i mejdunarodnye atnoshenia. 2020. t. 64. no. 4. b. 3744. 11. http://www.gov.uz ўзбeкиcтoн pecпyбликacининг ҳyкyмaт пopтaли 12.http://www.uza.uz ўзбeкиcтoн pecпyбликacи миллий axбopoт aгeнтлиги pacмий вeб-caйти 13.http://www.mf.uz ўзбeкиcтoн pecпyбликacи мoлия вaзиpлиги pacмий вeб-caйти 14http://www.lex.uz ўзбeкиcтoн pecпyбликacи қoнyнчилик мaълyмoтлapи миллий бaзacи http://www.gov.uz/ http://www.uza.uz/ http://www.mf.uz/ http://www.lex.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 29 www.americanjournal.org the extent to which the blue ocean strategy of korek telecom company baghdad is adopted to improve marketing performance-an exploratory study of the opinions of the company's sample surveyed dr. nawras sahib khalil al-hussaini lecturer/finance and banking sciences dep/ mustansiriya university, baghdad, iraq. e-mail: nawras_h@uomustansiriyah.edu.iq phone number: +9647728526285 a b s t r a c t k e y w o r d s this research aims to find out the impact of the blue ocean strategy on increasing the development of marketing performance in korek telecom company baghdad. the descriptive analytical approach was used. also, the questionnaire was utilized as a primary tool in collecting data from the study sample. where (40) questionnaires were distributed to the respondents of the study population, and 37 questionnaires were retrieved by (92.5%). the research found a statistically significant correlation between the dimensions of the blue ocean strategy and the company's marketing performance. the study recommended adding new value (innovation) to the company's services to improve marketing performance. blue ocean strategy, marketing performance, korek telecom company. introduction due to globalization, the changes, intense competition in the global market, and the challenges that face organizations. whether they are industrial or service organizations to achieve the goal of survival, increase demand for products, create new opportunities and spaces. therefore, most institutions are looking for strategies that assist in gaining a competitive advantage. furthermore, to avoid entering the field of intense competition in the local and international markets. there was an advantage of applying the blue ocean strategy as a modern management style for creativity, innovation, and real development to improve products. it is one of the effective pillars in developing a marketing plan that leads to the development of marketing performance, and strengthening its competitive position through the knowledge of its customers and competitors. as well as suppliers with whom you deal and understand current and expected market needs, in order to be able to keep pace with market developments based on a new vision derived from an accurate diagnosis of current reality. emphasizing the importance of the blue ocean for the institution with a strategic dimension american journal of business management, economics and banking volume 22 march 2024 p a g e | 30 www.americanjournal.org that seeks to maximize the outputs compared to the inputs through the specific knowledge activities. organizations prefer applying the blue ocean strategy to focus on using its impact to improve and develop marketing decision-making, which helps develop the marketing performance of the organization. 2.research methodology 2.1 the research problem the global environment in which companies operate is characterized by rapid change, increasing competition, technological progress, and changing customer needs that make them unable to improve their performance, survival, continuity, and success in the long term. therefore, it is looking for methods to implement the new blue ocean strategy, out far from competitive strategies, to add value to its products and find new markets through the optimal use of its core capabilities to perform tasks and activities efficiently and effectively. the research problem can be formulated through the following questions: 1is there a clear perception among the managers of the researched company about the concept of the blue ocean strategy? 2does the blue ocean strategy have a role in improving marketing performance? 3what is the scope of the possibility of using and applying the blue ocean strategy with its variables (innovation, exclusion, reduction, increase) in the researched company? 4is there a correlation between the blue ocean strategy and marketing performance? 5what is the impact of the blue ocean strategy on improving marketing performance? 2.2. the importance of research the importance of the research lies in the novelty of the application of the blue ocean strategy to achieve new products and markets (to increase market share) for many local and international industrial companies. the blue ocean strategy is an unconventional intellectual direction that works in the long term to discover new markets and get rid of the intensity of competition. in addition, the blue ocean strategy achieves growth, preservation. survival some companies in the local and international markets have realized the importance of value innovation. companies began to orient their strategies towards creating value, searching for new values for the customer, and for the company to increase products, and reaching new markets, subsequently achieving an increase in market share and improving marketing performance. as well as providing a theoretical framework on the principles of the blue ocean strategy to increase the awareness of companies in the iraqi markets of this new strategic intellectual direction, and its major role in achieving the company's objectives. 2.3 research objectives 1increasing the knowledge of the managers and employees for the company about the concept of the blue ocean strategy, as well as the concept of marketing performance and the definition of its dimensions. 2identifying the scope to which the dimensions of the blue ocean strategy are applied in korek telecommunications company. 3determine the level of marketing performance in korek telecom company. american journal of business management, economics and banking volume 22 march 2024 p a g e | 31 www.americanjournal.org 4detecting the nature of the correlation between the blue ocean strategy in its dimensions (innovation, exclusion, reduction, increase) and marketing performance. 5testing the impact of the blue ocean strategy with its dimensions (innovation, exclusion, reduction, increase) and marketing performance. 2.4 research hypotheses the first hypothesis: there is a significant positive correlation between the blue ocean strategy with its dimensions (innovation, exclusion, reduction, increase) and the dimensions of marketing performance (market share, profitability, customer satisfaction). the second hypothesis: there is a significant impact relationship between the blue ocean strategy with its dimensions (innovation, exclusion, reduction, increase) and the dimensions of marketing performance (market share, profitability, customer satisfaction). 2.5 research methodology to achieve the objectives of the research the descriptive analytical approach, whether in completing the theoretical or field aspect was utilized. also, this approach has been used for investigating the availability of indicators of the blue ocean strategy in korek telecom company baghdad. 2.6 the research community and sample due to the huge size of the research community and the difficulty of applying the search tool to the entire community, the research community based on korek telecom company in iraq. the field research sample was determined from the company's headquarters in baghdad province including (45) individuals (from the general manager, chancellery, department managers, senior engineer, chief engineer, assistant chief engineer, senior supervisor). 2.7 statistical methods the study was based on a questionnaire to collect the necessary data from the members of the research sample. the questionnaire is one of the most common research tools in the field of field studies. the following statistical methods were employed: the number of iterations, arithmetic mean, and standard deviation, in addition to the measure of relative importance, also, the pearson correlation coefficient, the simple regression coefficient, and the analysis of variance based on the statistical program (spss, vr.26). 2.8 believe the search tool the questionnaire was validated by a panel of judges and business management experts. also, the validity of the questionnaire was confirmed through the internal consistency in which the value of the correlation coefficient between (0.432-0.891) showing the level of significance (0.000). furthermore, all the results of the correlation coefficient of all areas for the questionnaire with statistical significance at the level of (α ≤ 0.05), pearson's correlation coefficient for the blue ocean strategy dimension was (0.982) and the marketing performance dimension was (0.923). all survey areas were considered valid for the scale that determined by the cronbach alpha coefficient. the most famous test used to measure stability was found to have a value of (0.972) for the questionnaire as a whole. the reliability of the results showed that the questionnaire was effective and stable in measuring the american journal of business management, economics and banking volume 22 march 2024 p a g e | 32 www.americanjournal.org content of its design. in addition, the questionnaire is an efficient measurement tool suitable for the study and can be applied dependably. 2.9 previous studies study,(zhao & jin, wri ,2010) "application of blue ocean strategy to chinese 3g mobile telecom industry" the study aimed to implement the blue ocean strategy in the chinese thirdgeneration cellular communications industry. this industry is one of the fast-growing industries, especially in the rapid technological development in the cellular communications area. the researchers depended on the quantitative and qualitative approach in their study by identifying competitive factors in the cellular communications industry through porter's model of the five competitive forces. in the cellular communications sector, the researchers identified factors of value to customers, which represents a non-competitive market, and a lot of opportunities to exploit and grow in a new market. the study found that the chinese cellular market represents a great opportunity to take advantage of by implementing the blue ocean strategy and opening new markets representing both the cellular and internet industries, to attract new customers and achieve growth in light of intense competition. the researchers recommended that companies in this industry take advantage of the opportunity to create value and open up new markets in order to achieve quick growth and success. study, (alrubaiee, 2013) " an investigation on the relationship between new service development, market orientation and marketing performance" the study aimed to identify the nature of the relationship between service development and marketing performance. as well as to clarify the impact of product development on marketing performance and give a competitive advantage to the developing companies. the study used the descriptive analytical method, the current research used the questionnaire as a tool for data collection. the study found that companies that develop their products continuously have better marketing performance than others. also, there is a relationship between product development within the company and their marketing performance, which helped them achieve their goals. study, (badrani, 2017) " blue ocean strategy as a means to achieve competitive excellence after surveying opinions from zain telecommunications company in mosul" the study aimed to determine the relationship (correlation and effect) between the philosophy of the blue ocean strategy to achieve competitive excellence. in addition, to achieve the objectives of the research, the researcher designed a questionnaire to collect information from the research sample. the data was collected, analyzed and hypotheses tested using the statistical program (spss, vr,16). statistical methods showed several results, most notably: a significant correlation between the blue ocean strategy and the achievement of competitive advantage. a significant impact of the blue ocean strategy in achieving competitive advantage of the company surveyed. also, some proposals were made consistent with the conclusions. study, (joysim, 2018) the study aimed to identify the impact of strategic directions on the dimensions of marketing performance in coca-cola soft drinks babylon, iraq. the researcher used the descriptive analytical approach. the study population represented (365) male and female workers from the company's employees. a stratified random sample representing (85) singles were selected. the questionnaire was used to collect the data. the study concluded with a set of results. the most important outcome is that there is a significant positive correlation between the dimensions of american journal of business management, economics and banking volume 22 march 2024 p a g e | 33 www.americanjournal.org strategic directions and marketing performance. there is also a positive impact of the strategic direction on the marketing performance of the company surveyed. study, (abu hasna, 2018) "the role of the blue ocean strategy in improving competitive performance: a field study applied to palestinian ict sector companies" the study aimed to identify the role of the blue ocean strategy in improving the competitive performance of palestinian ict sector companies. the descriptive analytical approach was utilized. the measurement tool was designed as the questionnaire. the questionnaire was distributed to a stratified random sample of employees in palestinian ict sector companies. the statistical analysis program spss was employed. the study found that there is a positive impact of the blue ocean strategy on improving competitive performance. in addition, the study recommended increasing attention to the blue ocean strategy due to the positive impact of this strategy on improving the competitive performance of palestinian ict sector companies. 3.the theoretical side 3.1 blue ocean strategy many companies seek to analyze the environment to identify opportunities and threat. also, the companies seek to adapt to threats and develop their strategy according to these threats instead of focusing on the available opportunities in the market. in addition, formulating a strategy based on building the company's capabilities. furthermore, exploiting skills and resources to present their new vision, which is the blue ocean strategy. the concept of blue ocean strategy: it is one of the modern terms in the field of business management. the companies depend on the blue ocean strategy at the present time, away from the intense competition that may deplete the company's resources and capabilities. therefore, the blue ocean strategy needed to search for new markets that were not previously known to them and their competitors to create demand for them. also, to find new investment opportunities in pursuit of survival, sustainable growth and benefit. it means the organizations create a new product or imprint an existing product, create a new service, or develop it to meet customer requirements and satisfaction (yang, 2012:111-114). it is adapted from the color of the clear, blue, unpolluted water that is not clouded by the bloodiness of red water, which collectively forms the blue oceans. from the above characteristics, philosophy borrowed its name to enter the business world due to some researchers and thinkers, to become one of the philosophies adopted by organizations in their work under the philosophy of the blue ocean. therefore, these oceans needed to search for new markets that were not previously known to them and their competitors, to create demand for them. also, to find new investment opportunities in pursuit of survival, growth, and benefit. that means that organizations create a new product or give a fingerprint to an existing product, or a new service or develop it to meet the requirements of the customer. based on the preceding, many definitions deal with the concept. in addition, there are differences in the concept of defining the blue ocean strategy according to different intellectual orientations. the following is a presentation of some of these definitions: the strategy of blue neutral is the unknown market space that has not yet been discovered or that competitors have not reached. while emphasizing the independence of competition as something that is not on the table because its rules have not yet been established. ( kim wc & mauborgne,2005). american journal of business management, economics and banking volume 22 march 2024 p a g e | 34 www.americanjournal.org (raouf :2010) defined it as "the means to discover market positions that organizations have not reached." (farhan and al-bina, 2012: 24) defined it as "the investigation for undiscovered markets or uncharted areas of the market that represent industries that do not exist today is a business strategy that stimulates the creation of new markets rather than competing in existing industries" companies must be different from their competitors on their way to the blue ocean. so companies must know the requirements of customers and their desires to enable companies to create new markets, defined by their strategy rather than markets determined by other companies that have to act according to competitive strategies (al bayrakaat & beybur,2018:188). the researchers defined the blue ocean strategy as "a competitive strategy used by an industrial organization to find new markets for its products that were not previously known to it and to competitors, to find demand for them, also, to find new investment opportunities in pursuit of survival, growth, and benefit. (al-futtaim, al-mujahid, 2020: 25). the blue ocean is an unknown market space that denotes all industries that do not exist. so the blue ocean strategy identifies new customers, works to attract them, and creates new markets that exceed the boundaries of existing competing industries. this identification is done through the untapped market space (free), creating demand, high opportunities for growth and achieving a comfortable blue ocean (singh&paliwal, 2020:2785). knowing the concept of the blue ocean strategy by the company's management helps us to modify and refine the product or service. it provides increase the limits of the target market and implements its work effectively. the blue ocean strategy is to create value that can be obtained through differentiation and low cost to produce added or innovative value for companies and customers (suci et al . , 2020: 57-56). through the previous definitions, the researcher can define the blue ocean strategy as: it is the search for new markets with new customers that meet their needs through new products with added value. also, innovation is away from intense competition and red oceans in which large companies compete for market shares, depending on the company's capabilities and capabilities. 3.2 the importance of the blue ocean strategy the blue ocean strategy is one of the modern strategies that have gained wide attention from researchers, specialists, and companies. this strategy emerged as a result of the vast change that has occurred in the business world. (al-badrani, 2017) mentioned that the blue ocean strategy differs from most strategies, which revolve around bloody competition. blue ocean strategy changes corporate strategy from value creation to innovation that seeks to achieve recognition and low cost simultaneously (ganduz, 2018:4). where this strategy has been tried in several countries around the world, its found to be useful for creating and innovating new markets free from competitive disputes with a bloody red color of competition. comparing the blue ocean strategy with other strategies found that the blue ocean strategy has the advantage of defining the market more clearly compared to other strategies. the blue ocean strategy enables managers to have a unique value for consumers and create more value (alghamdi, 2016:141-142). american journal of business management, economics and banking volume 22 march 2024 p a g e | 35 www.americanjournal.org the blue ocean strategy follows a new strategic path or method known as "value creation", which represents the main part of this strategy, as value creation means the creation of imitable value that gives the organization a sustainable competitive advantage (najm, 2010). we conclude from the above, that creating blue oceans is not an easy, continuous or static process. but rather a set of moving processes organized to do something different or provide a service that others (competitors) have not done. the organization works to create a blue ocean through strong performance that leads to known results, then creativity appears on the horizon. in addition, to create a blue ocean that you need and produce something innovative for the beneficiary public. 3.3 blue ocean strategy indicators the blue ocean strategy has a set of dimensions and indicators (exclusion, reduction, increase, innovation), which can be explained as follows: 1exclusion: successful business organizations work to dispense with some components or processes that do not have a useful value in their work and do not provide any benefit for the organization. excluding them leads to reducing expenses to a minimum without affecting the levels of sales volume, profits, quality, and service. for example, excluding the sale of products or services in one market location, as well as excluding some expenses that can be avoided in order to reduce the costs of the production process. also, the exclusion of workers who confuse the work of the organization (farhan, al-bina, 2012: 128). 2reduction: reducing some of the work procedures that the organization deems unnecessary or unjustified to reduce expenses and the size of costs. some of the services provided to customers must be reduced unnecessarily. the downsizing strategy requires the company to reduce its investments in the field of activity as much as it can and to get rid of some useless or impossible ideas (al-tai and al-alaq, 2009: 299). 3increase: it is the raising of features that leads to raising the level of quality of products or services provided, as the company's management adds some activities, procedures or materials that seek to achieve customer satisfaction. in addition, exceed customer expectations, which leads to an increase in the growth rate of company sales or market share, exceeds the level of profit volume, and achieves a good reputation for the organization. for example, increasing the places of sale of the organization's products or services and the way these products are displayed (gündüz, ş, 2018: 2). 4innovation: create new demand by creating new key features and new elements that have not been previously available to customers. also, help the organization to produce better, achieve customer satisfaction, and provide the best value for him, the best way to achieve the benefit of the company and customers at the same time. thus the secret of the success of the blue oceans strategy lies in the fact that it works according to an integrated and comprehensive system where the creation of value to provide products exceeds the preparations and expectations of buyers. the concept of value creation or innovative value reconciles value considerations with cost considerations by offering outstanding products and reducing costs simultaneously. (shafiq et al, 2017:76) 3.4 principles of the blue ocean strategy the principles underpinning the formulation of the blue ocean strategy are structured in several main axes (kim and maubergen, 2006: 44; badrani, 2017: 188-189; mohamed ,2009: 29; abu hasna, 2018: 794-814). american journal of business management, economics and banking volume 22 march 2024 p a g e | 36 www.americanjournal.org 1rebuilding the boundaries of the market: the idea of this principle is to get rid of competition by working to create a new market away from competition, through the role of managers to identify the characteristics of the market to rebuild the current market elements, go beyond the market limits and move towards finding a blue ocean strategy. 2focus on the full picture: the strategic planning process of the organization that focuses on the full picture reduces effort and time. in addition, the strategic planning process helps in exploring its future strategy, considering a competitive environment through the customer. also, focus on what interests the customer by developing performance according to the customer's requirement, what he expects from you, and its openness towards the blue ocean. 3extending beyond current demand: the organization that pursues a blue ocean strategy should move away from traditional strategies by re-dividing the market into several groups. each group includes customers with similar desires and reaches beyond the current demand by not focusing on existing customers. then they design a product that caters to a segment of customers that didn't exist before. 4striving for the right strategic context: it is the implementation of strategies that helps to achieve goals using some basic criteria (customer benefit, price, cost, and adaptation). where the customer finds a convincing reason to accept the acquisition of the benefit of the product or service and sets a price that attracts a mass of target customers who will pay with a conviction for the product or service. the principles underpinning the implementation of the blue ocean strategy revolve around two main axes: 1. overcoming organizational obstacles: every implementation is challenged and the implementation of the blue ocean strategy faces four obstacles (kim and mauber gun, 2006: 197-198). amoral: it is to alert and educate the organization's employees to realize the importance of strategic change towards the blue ocean strategy and to set a future path for its application and benefit. blimited resources: the organization must know that the greater intensity of the transformation, the greater resources to achieve the strategic change required for its implementation. cmotivation: how to convince the main players in the company to move quickly out of a years-long situation and move to a blue ocean strategy. dpolitics: it is represented by internal or external resistance to change by powerful influencers and interests. to achieve this effectively, it should be overcome to lead to the implementation of the new strategy. change is not related to increasing resources and time, but to using what is called the "tipping point leadership theory". 2building implementation within the strategy: management should spread deep trust and commitment among individuals of all ranks, respect their opinions and suggestions. also, inspire individuals to cooperate voluntarily by providing energy and entrepreneurship to the best of their capabilities to reduce management risks resulting from loss of trust and lack of cooperation. for this strategy to work, operational organizational justice must be exercised (kim and mabrogen, 2006: 231-232). 3.5 marketing performance marketing performance is one of the most important priorities for organizations that must be developed for a long time, especially industrial organizations that are characterized by high costs. american journal of business management, economics and banking volume 22 march 2024 p a g e | 37 www.americanjournal.org 3.5.1 the concept of marketing performance organizations always seek to achieve high and distinct levels of marketing performance in the work environment to ensure survival and continuity. as performance is the outcome that the organization aims to reach by achieving its long-term goals and adapting to environmental variables, and the following are some of the researchers' contributions to those definitions. marketing performance is defined as the extent to which an industrial organization can achieve its objectives: (increasing profits, increasing sales, raising its market share, achieving customer satisfaction, and providing them with the greatest value) by exploiting its resources efficiently and effectively. (al-mujahid, amal mohammed, al-futtaim, muhammad muhammad, 2020: 35). 3.5.2 marketing performance indicators organizations seek to follow up on marketing performance, identify the positive and negative aspects in it, support the positive aspects, and evaluate the negative aspects, which may be complex because they face challenges in light of the environmental changes surrounding the organization (hammoud, 2014: 45). marketing performance indicators are quantitative information that measures the efficiency or effectiveness of a part of a marketing process or system, about a specific and accepted marketing criterion, plan, or objectives within the framework of the organization's strategy, comparing results with predetermined standards, and analyzing deviations so that the necessary corrections can be made (yahyaoui, 2006: 102). the marketing performance indicators that will be studied are: (market share, profitability, and customer satisfaction). market share: market share is an important indicator that enhances the competitive position of business organizations. as organizations strive to achieve a distinct and high market share in their market, provide appropriate products or services in their quality and prices, and develop their marketing activities continuously in line with the needs and expectations of customers. a higher share means better performance in serving and meeting the needs of existing and potential customers and gives the organization the ability to achieve another market penetration (bou kriza, 2011: 116) (merhi, 2014: 109). -profitability: organizations aim to achieve high levels of profits. the net profit contributes to the rise in the value of the organization in the service and industrial environment in which it operates, which helps in the survival and growth of the organization. the net profit is done through the development of products, services, or markets that are one of the reasons for achieving high profitability and growth. the profits generated by an organization in the market have the effect of improving its marketing performance and enabling it to cope with the competitive conditions in the markets at present (karadaghi, 2004: 94). profitability "is the extent to which an organization succeeds in reducing costs and measuring its ability to reduce costs and generate profits from sales", that is, how efficiently and effectively the organization's management generates profits by using its assets efficiently (abu taha, 2012:25) (van, uyen & phuong, 2015:4-5). customer satisfaction: customer satisfaction has become a prominent place within the organization's concerns. many organizations have realized that customer satisfaction gives them a strong justification for survival and growth. achieve satisfaction may make the organizations unable american journal of business management, economics and banking volume 22 march 2024 p a g e | 38 www.americanjournal.org to continue and compete for a long time, especially in the current challenges of technological development and the spread and expansion of multinational organizations as a tool of globalization. customer satisfaction can be defined as "the feeling of happiness or frustration of the customer as a result of comparing the performance achieved by the product" (kotler, 2008: 3). the organization must let its customers express their opinions towards the organization's products and performance in general, also, use multiple methods in measuring customer satisfaction. the most important of which are: hidden marketing, which is done through the employees of the organization to play the role of the customer to buy its products and reflect an image of the advantages and disadvantages that accompany that process in a way that enables management to improve sales methods. follow-up on suggestions and complaints submitted by the organization's clients (ashira & sanna, 2021: 43). 4. the practical aspect the results of the study will be presented and discussed as follows: –analysis of the results related to the responses of the research sample on the independent variable (blue ocean strategy): this part deals with the description and diagnosis of the independent variable of the research. the results of the questionnaire and table (1) below show the frequency distributions, percentages, arithmetic means, and standard deviations of the answers from the measures of the research variables. 1innovation variable: overall, it achieved an arithmetic mean of (3.53) and a standard deviation of (1.093), which is higher than the virtual mean (3), which indicates the interest of the company's management in innovation. as for the paragraphs of this variable, paragraph (x3) achieved the highest arithmetic mean, as it reached (3.88) and a standard deviation of (1.072), which indicates the company's interest in providing new ideas that meet the customer's need. for paragraph (x4), it got the lowest arithmetic mean, which reached (3.30) and a standard deviation of (1.145), which indicates the company's interest in using modern technology and information to achieve competitive superiority over the rest of the competing companies in the market. 2variable increase: it achieved at the total level an arithmetic mean of (3.66) and a standard deviation of (1.106), which is higher than the virtual mean (3), which indicates that the increase and expansion that the company seeks at a high level and aspires towards more. at the level of subparagraphs, paragraph (6x) received the highest arithmetic mean, it reached (3.88) and a standard deviation of (1.072). paragraph (6x) indicates the company's endeavor to attract efficient elements to improve the quality of service. for paragraph (7x), it got the lowest arithmetic mean, which amounted to (3.32) and a standard deviation of (1.277), which indicates the need for the surveyed company to increase its interest in distribution channels dedicated to communication with its customers to increase its market share. 3reduction variable: overall, the variable got an arithmetic mean of (3.47) and a standard deviation of (1.137), which is higher than the virtual mean (3), which indicates the company's endeavor to reduce costs by reducing unnecessary services that cause waste and loss in the production of service. at the level of sub-paragraphs, paragraph (15x) received the highest arithmetic mean, it reached (3.82) and a standard deviation of (1.047). paragraph(15x) indicates that the company in question is striving to increase its profits by reducing the cost of production by getting rid of waste and loss in the production processes of the service, also, getting rid of the weak quality that does not provide real value for the service provided. for paragraph (12x), it got the lowest arithmetic mean, which reached (3.22) and a standard deviation of (1.242), where the company must reduce harmful applications to the environment and society. american journal of business management, economics and banking volume 22 march 2024 p a g e | 39 www.americanjournal.org 4exclusion variable: this variable at the total level received an arithmetic mean of (3.59) and a standard deviation of (1.121), which is higher than the virtual mean (3), which indicates the company's increasing endeavor towards excluding unnecessary elements, materials and marketing and service activities that increase the total costs of the company. at the level of sub-paragraphs, paragraph (19x) received the highest arithmetic mean, reaching (3.80) with a standard deviation of (1.045), which indicates the company's interest in getting rid of inefficient cadres that hinder its competitive superiority and that have no point in adding value to the company or improving the quality of service. for paragraph (17x), which got the lowest arithmetic mean, where it reached (3.30) and a standard deviation of (1.263), where the company surveyed excludes some useless and expensive promotional and marketing operations. it is clear from the table below that the second indicator (increase) within the indicators of the blue ocean strategy ranked first, followed by the fourth indicator (exclusion) ranked second, followed by the first indicator (innovation) ranked third, followed by the third indicator (reduction) ranked fourth. the percentages were convergent and the response was completely acceptable. table (1) main indicators of the independent variable variables scale responses statistical significance q1 sub-variables strongly disagree disagree uncertain agree strongly agree mean sd st. error of the mean x1 no. 1 4 32 3.75 1.041 0.143 % 2 11 87 x2 no. 3 5 29 3.35 1.173 0.187 % 8 13 79 x3 no. 5 32 3.88 1.072 0.130 % 13 87 x4 no. 1 6 30 3.30 1.145 0.177 % 2 17 81 x5 no. 4 5 28 3.40 1.037 0.133 % 11 13 76 the computed mean of q1(innovation) 3.53 1.093 0.154 q2 x6 no. 5 32 3.88 1.072 0.130 % 13 87 x7 no. 3 4 30 3.32 1.277 0.181 % 8 11 81 x8 no. 6 31 3.77 1.064 0.160 % 16 84 x9 no. 1 4 32 3.80 1.070 0.126 % 2 11 87 x10 no. 3 6 28 3.57 1.049 0.136 % 8 16 76 computed mean of q2(increase) 3.66 1.106 0.146 q3 x11 no. 3 5 29 3.35 1.173 0.187 % 8 13 79 x12 no. 6 7 24 3.22 1.242 0.176 % 16 19 65 x13 no. 3 6 28 3.61 1.050 0.137 % 8 16 76 x14 no. 3 5 29 3.35 1.173 0.187 % 8 13 79 x15 no. 1 5 31 3.82 1.047 0.181 % 2 14 84 the computed mean of q3(reduction) 3.47 1.137 0.174 q4 x16 no. 1 6 30 3.78 1.052 0.145 % 3 16 81 x17 no. 3 9 25 3.30 1.263 0.202 % 8 24 68 x18 no. 7 13 17 3.50 1.200 0.162 % 19 35 46 x19 no. 2 4 31 3.80 1.045 0.178 % 5 11 84 x20 no. 4 5 28 3.60 1.047 0.134 % 11 13 76 the computed mean of q4(exclusion) 3.59 1.121 0.164 american journal of business management, economics and banking volume 22 march 2024 p a g e | 40 www.americanjournal.org source: preparing the researcher based on the outputs of the statistical program spss analysis of the results related to the answers of the research sample about the dependent variable (marketing performance): this part deals with the description and diagnosis of the variable of the research. according to the results of the questionnaire and table (2) below shows the frequency distributions, percentages, arithmetic means, and standard deviations of the answers from the measures of the research variables. 1customer satisfaction variable: this variable got at the total level an arithmetic mean of (4.09) and a standard deviation of (1.102), which is higher than the default mean (3), it indicates a general direction toward ok. the results obtained indicate that the adoption of the blue ocean strategy by the company under study has contributed to customer satisfaction by building strong relationships with them and covering their requests well. at the level of sub-paragraphs, paragraph (y 3) received the highest arithmetic mean, reaching (4.50) and a standard deviation of (1.031). paragraph (y 3) indicates that the dimensions of the blue ocean strategy contributed to building good relationships between the company and its customers. while paragraph (y 2) got the lowest arithmetic mean, which amounted to (3.87) and a standard deviation of (1.264). where the company must pay more attention to achieving good coverage of customer requests and meeting their desires. 2profitability variable: this variable got at the total level an arithmetic mean of (4.08) and a standard deviation of (1.067), which is higher than the hypothetical mean (3), it indicates a general direction towards agree. the results obtained indicate that the adoption of the blue ocean strategy by the company has contributed to improving the company's profitability through customer dealings and efficient use of resources, which led to an increase in profits. at the level of sub-paragraphs, paragraph (y6) received the highest arithmetic mean, it reached (4.66) and a standard deviation of (1.041). paragraph (y6) indicates that the dimensions of the blue ocean strategy contributed to the increase in the company's transactions, which led to an increase in its profits. for paragraph (y5), it got the lowest arithmetic mean, which reached (3.70) with a standard deviation of (1.082). paragraph (y5) indicates that the dimensions of the blue ocean strategy contributed to the decrease in the overall costs of the company, which led to increased profitability but less than required. 3market share variable: this variable got at the total level an arithmetic mean of (3.91) and a standard deviation of (1.038), which is higher than the hypothetical mean (3), it indicates a general direction towards agree. the results indicate that the adoption of the blue ocean strategy by the company has contributed to increasing market share by expanding the customer base and acquiring them. at the level of sub-paragraphs, paragraph (y 9) received the highest arithmetic mean, reaching (4.33) and a standard deviation of (1.030). paragraph (y 9) indicates that the dimensions of the blue ocean strategy contributed to customer retention and new customers. for paragraph (y7), it got the lowest arithmetic mean, which reached (3.69) and a standard deviation of (1.063), where the company must strengthen the existing marketing outlets and open new ones. also, the order of the dimensions of marketing performance was noted, according to the percentage of the impact of the indicators of the blue ocean strategy respectively customer satisfaction, profitability, and market share. american journal of business management, economics and banking volume 22 march 2024 p a g e | 41 www.americanjournal.org table (2) main indicators of the dependent variable variables scale responses statistical significance q1 sub-variables strongly disagree disagree uncertain agree strongly agree mean sd st. error of the mean y1 no. 1 6 03 3.90 1.013 0.152 % 2 17 81 y2 no. 1 5 31 3.87 1.264 0.127 % 2 13 84 y3 no. 5 32 4.50 1.031 0.124 % 13 87 the computed mean of q1(customer satisfaction) 4.09 1.102 0.134 q2 y4 no. 6 31 3.89 1.080 0.115 % 17 84 y5 no. 7 30 3.70 1.082 0.172 % 19 81 y6 no. 4 33 4.66 1.041 0.126 % 11 89 computed mean of q2(profitability) 4.08 1.067 0.137 q3 y7 no. 1 6 30 3.69 1.063 0.187 % 2 17 81 y8 no. 7 30 3.72 1.022 0.176 % 19 65 y9 no. 4 33 4.33 1.030 0.137 % 11 89 the computed mean of q3(market share) 3.91 1.038 0.166 source: preparing the researcher based on the outputs of the statistical program spss analysis of the results related to the answers of the research sample on the correlation between the dimensions of the blue ocean strategy and marketing performance. to test the hypothesis that states "there is a statistically significant correlation at the level of (0.05) between the dimensions of the blue ocean strategy and the marketing performance in the respondent company." table (3) below shows the results of the correlation coefficient to know the relationship between the variables. table (3) results of the correlation coefficient between the independent variable and the dependent variable dependent variable independent variable customer satisfaction profitability market share marketing performance innovation 0.632 0.350 0.597 0.572 increase 0.521 0.473 0.456 0.412 reduction 0.398 0.427 0.434 0.392 exclusion 0.380 0.397 0.390 0.382 blue ocean strategy 0.580 0.399 0.485 0.579 source: preparing the researcher based on the outputs of the statistical program spss at a significant level (0.05) table 3 shows the following 1the results show that there is a statistically significant relationship between the dimensions of the blue ocean strategy and the marketing performance as a whole at the level of (0.05), it reached (0.579), which is a positive value. the greater the dimensions of the blue ocean strategy, the more leads to an american journal of business management, economics and banking volume 22 march 2024 p a g e | 42 www.americanjournal.org increase in marketing performance. innovation with marketing performance achieved the strongest correlation relationship, the correlation reached (0.572) at a significant level (0.05), it requires the company to create new services that exceed the customer's perception, it is difficult for other companies to imitate them or reach the same level. 2for the correlation between the variables of the blue ocean strategy and marketing performance at the individual level, the innovation variable recorded the highest correlation with job satisfaction reached (0.632) at a significant level (0.05). the correlation refers to innovation having an important role in achieving customer satisfaction. providing new and innovative services makes the surveyed company move away from the red oceans, followed by the variable increase, where the correlation coefficient reached (0.521). the variable received the reduction on a correlation coefficient of (0.398), followed by the exclusion variable, where the correlation coefficient reached (0.380), which is the lowest coefficient compared to innovation. 3the increase variable recorded the highest correlation with the dependent variable (profitability), where the correlation coefficient reached (0.473) at a significance level of (0.05). in turn, the correlation coefficient indicates that the opening of new branches to provide facilities to serve customers and earn them increases the percentage of profits in the company. the reduction variable in second place, where the correlation coefficient reached (0.427), it is followed in third place by exclusion, where the correlation coefficient reached (0.397). the innovation in fourth place, where the correlation coefficient reached (0.350), this indicates reducing the costs of providing services and excluding and reducing some excess links in special operations in providing service to the customer. 4the innovation variable recorded the strongest correlation with the dependent variable (market share), it obtained a correlation coefficient of (0.597), which indicates the element of innovation that contributes effectively to increasing the market share of the company, followed by the increase variable, it obtained a strong correlation of (0.456), followed by the reduction variable, where the correlation coefficient reached (0.434), followed by the exclusion variable, where the correlation coefficient reached (0.390), this indicates that innovation depends on the company to improve marketing performance. it is clear from the above the validity of the first main hypothesis, which states that: there is a significant positive correlation at the level of (0.05) between the dimensions of the blue ocean strategy and the marketing performance in the respondent company. analysis of the results related to the answers of the research sample on the impact relationship between the dimensions of the blue ocean strategy and marketing performance. to test the hypothesis that states "there is a statistically significant effect relationship at the level of (0.05) between the dimensions of the blue ocean strategy and the marketing performance in the respondent company." table (4) below shows the two dimensions of the blue ocean strategy and the dimensions of marketing performance. independent variable correlation coefficient r regression constant regression coefficient b coefficient of determination 𝑹𝟐 calculated t-value significance level t.sig calculated f value innovation 0.67 0.892 120.57 0.002 16.130 89.9% 0.472 increase 0.60 0.878 112.32 0.02 14.921 85.6% 0.465 reduction 0.57 0.854 105.48 0.023 10.578 80.1% 0.667 exclusion 0.51 1.035 99.19 0.033 9.835 79.6% 0.731 american journal of business management, economics and banking volume 22 march 2024 p a g e | 43 www.americanjournal.org source: preparing the researcher based on the outputs of the statistical program spss n:37 p:0.000 a≤0.05 1the effect of innovation on marketing performance: the correlation coefficient was (0.67) between the independent variable (innovation) one of the dimensions of the blue ocean strategy and the dimensions of the dependent variable which is a marketing performance, which indicates a direct correlation between the two dimensions. also, it is clear that the coefficient of determination 𝑅2has reached (89.9), which is a strong and positive impact relationship between the independent variable (innovation) and the dependent variable marketing performance. the coefficient of determination 𝑅2 indicates that innovation affects marketing performance by (89.9%). while the remaining percentage (11.1%) is other variables that have not been taken into research. the calculated value of (f) amounted to (120.57), while the value of (f) tabular (4.17) at a significant level (0.05), which indicates that the calculated value of (f) is greater than the tabular value of (f), this indicates that the strength of the impact after innovation in marketing performance. the calculated value of (t) was (16.130), which is higher than the tabular value of (t) of (0.002) at a significant level (0.05), which means any increase in innovation one value leads to an improvement in marketing performance by (0.472). 2the effect of the increase in marketing performance: the correlation coefficient (0.60) between the independent variable (increase) is one of the dimensions of the blue ocean strategy and the dimensions of the dependent variable which is a marketing performance, which indicates a direct correlation between the two dimensions. also, it is clear that the coefficient of determination r2 has reached (85.6), which is a strong positive impact relationship between the independent variable (increase) and the dependent variable marketing performance, it indicates that the increase affects marketing performance by (85.6%). the remaining percentage (14.4%) is other variables that were not taken into research. the calculated value of (f) amounted to (112.32), while the value of (f) tabular (4.17) at a significant level (0.05), which indicates that the calculated value of (f) is greater than the tabular value of (f), this indicates that the strength of the effect after the increase in marketing performance. the calculated value of (t) was (14.921), which is higher than the tabular value of (t) of (0.02) at a significant level (0.05), which means any increase in the increase of one value leads to an improvement in marketing performance by (0.465). 3the effect of reduction in marketing performance: the correlation coefficient (0.57) between the independent variable (reduction) is one of the dimensions of the blue ocean strategy and the dimensions of the dependent variable marketing performance, which indicates a direct correlation between the two dimensions. it is also clear that the coefficient of determination 𝑅2 has reached (80.1), which is a strong positive impact relationship between the independent variable (reduction) and the dependent variable marketing performance, which indicates that the reduction affects marketing performance by (80.1%). the remaining percentage (19.9%) is other variables that were not taken into research. the calculated value of (f) amounted to (105.48), while the value of (f) tabular (4.17) at a significant level (0.05), where it indicates that the calculated value of (f) is greater than the tabular value of (f), this indicates that the strength of the impact after the reduction in marketing performance. the calculated value of (t) was (10.578), which is higher than the tabular value of (t) of (0.023) at a significant level (0.05), which means any increase in the reduction of one value leads to an improvement in marketing performance by (0.667). american journal of business management, economics and banking volume 22 march 2024 p a g e | 44 www.americanjournal.org 4 the effect of distance in marketing performance: the correlation coefficient (0.51) between the independent variable (distancing) is one of the dimensions of the blue ocean strategy and the dimensions of the dependent variable marketing performance, which indicates a direct correlation between the two dimensions. also, it is clear that the coefficient of determination 𝑅2 has reached (79.6), which is a strong and positive impact relationship between the independent variable (distancing) and the dependent variable marketing performance, which indicates that the distance affects marketing performance by (79.6%). the remaining percentage (20.4%) is other variables that have not been taken into research. the calculated value of (f) amounted to (99.19), while the value of (f) tabular (4.17) at a significant level (0.05), where it indicates that the calculated value of (f) is greater than the tabular value of (f). the value of (f) indicates that the strength of the effect after moving away in marketing performance. the calculated value of (t) was (9.835), which is higher than the tabular value of (t) of (0.002) at a significant level (0.05), which means any increase in the distance of one value leads to an improvement in marketing performance by (0.731). from the above, it is clear that the validity of the second main hypothesis, which states that: there is a statistically significant effect relationship at the level of (0.05) between the dimensions of the blue ocean strategy and the marketing performance in the respondent company. 5. conclusions and recommendations 5.1 conclusions based on the analysis and clarification of the results of the field study, a set of conclusions were reached, which are as follows: 1there is excellent remarkable attention by korek telecom to adopt the application of the dimensions of the blue ocean strategy in general, this indicates the awareness of the company surveyed to apply this strategy. also, the company is continuing research to find new markets and innovative services that attract customers. in addition, to contribute to increasing the company's market share and profitability, which is aimed at improving its marketing performance. 2statistical analysis shows that the company has an interest in increasing the index through the multiplicity of distribution outlets and increasing them to increase their profits, thus improving their marketing performance. the level of application of this indicator was very high, as it was ranked first compared to the rest of the indicators, and this indicates the awareness of the company surveyed to apply the importance of this indicator. 3 it is clear that the exclusion index got a high application as well and is in second place, slightly ahead of the increasing index of the surveyed company, and this indicates the keenness of companies to exclude unnecessary elements, materials, and marketing and service activities that increase the total costs of the company. 4there is great interest among companies in applying the innovation index, as this index ranked third with a high application. also, the company's conviction that development at work needs continuous innovation to find new markets for its services helps the company improve its marketing performance. 5for the reduction, it came in fourth place, which seeks to reduce waste and damage in raw materials and reduce the resulting costs to improve marketing performance. 6the indicators of blue ocean strategy, there is a strong correlation between the blue ocean strategy in terms of its indicators and the marketing performance as a whole, and its three areas separately. as american journal of business management, economics and banking volume 22 march 2024 p a g e | 45 www.americanjournal.org the company's use of these dimensions (exclusion reduction increase innovation), it improves marketing performance by finding new markets and product innovation, and contributes to increasing the company's market share and growth. the dimensions of the blue ocean strategy have a positive impact on marketing performance as a whole and its three areas separately. the company's keenness to reduce costs and innovate new products, represented by the application of the dimensions of the blue ocean strategy, increases market share, profitability, and customer satisfaction. 5.2 recommendations 1the senior management of korek telecom company needs to pay attention to all elements of the blue ocean strategy, and the elements that help improve marketing performance, the results show their importance and impact on improving the company's marketing performance. 2the researched company's endeavor to reduce complementary services to save unnecessary expenses. also, the company emphasizes the importance of the scale of reduction by reducing the volume of internal errors in the quality of service to the lowest possible level. 3emphasizing the importance of excluding, by excluding unnecessary procedures without compromising the quality of service provided to beneficiaries, as well as reducing marketing costs to the lowest possible level by eliminating incompetent human cadres. 4emphasizing the importance of using after the increase to improve the quality of services provided to beneficiaries, adopting modern 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(2010). application of blue ocean strategy to chinese 3g mobile telecom industry. 32. -yang, j.t., (2012). identifying the attributes of blue ocean strategy in hospitality, international journal of contemporary hospitality management, 24(5), p.111-114. https://doi.org/10.14687/jhs.v15i1.5140 american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 147 www.americanjournal.org reflection of black leadership behaviors on job burnout of human resources-an applied study to a sample of business organizations in najaf governorate assist. prof. dr. amer abed kareem al-thabhawee al-furat al-awsat technical university / management technical college/ kufa ak.amer@atu.edu.iq a b s t r a c t k e y w o r d s black leadership represents the dark picture of leadership behaviors in organizations, and these behaviors have no impact on workers and the work environment causes them to be exhausted, so the impact on organizational performance as a whole. where the research aims to reveal the correlation and influence of the reflection of black leadership behaviors through its dimensions (petty tyranny, toxic leadership, immoral leadership, narcissistic leadership, bad supervision, destructive leadership) and the job burnout variable through its dimensions (emotional exhaustion, depersonalization (tendency personality), weakness of personal achievement) and identified the problem of research in several questions centered on the nature of the relationship of correlation and influence between the research variables, and for this purpose, a hypothetical scheme for the research expresses two of the main hypotheses, and in order to ensure the validity of the hypotheses, all of them were subjected to multiple tests to ensure their validity. the research used the questionnaire as a means to obtain data from the researched organizations, and the research used the descriptive analytical approach as a research method. as the research community consisted of three business organizations working in the private sector in the province of najaf, they are (ibn bilal national hospital, al-amir national hospital, al-ghadeer national hospital), where the total community size was (130) of workers in these hospitals, and the research applied the random sample in selecting (100) employees, where the sample represented (77%) of the total research community. the data were analyzed using a set of statistical methods (kendall's correlation coefficient, simple and multiple determination coefficient) and the results were extracted using the computer program (spss v.23). the black leadership behavior, job burnout of human resources, business organizations. american journal of business management, economics and banking volume 22 march 2024 p a g e | 148 www.americanjournal.org research found results confirming the existence of a statistically significant correlation and impact between black leadership behaviors and job exhaustion of the human resource in the researched organizations. introduction leadership behaviors have a major role in influencing others and directing their behavior towards achieving common goals. it is a responsibility towards the group being led to achieve the results set for the organization. leader behaviors work to give employees great confidence, strengthen communication and negotiation skills, and help develop the individual’s personality in performing his job duties. positive leadership behaviors also help employees in all aspects of professional life, from the job search process to career development. in the event that leadership follows negative behaviors by focusing on maintaining the position and controlling employees through toxic influence attempts, and dealing with employees according to fixed procedures. purposeful and deliberate by the leader to harm the subordinates, which causes negative repercussions that have the effect of killing the morale of the employees, as the employees see that these dark behaviors make them feel disengaged with the organization and they feel frustrated, hopeless, disappointed, and even hate. this affects the human resources and makes the individual feel drained and useless. to adapt, and you always find him feeling sad, angry, nervous, and exhausted, and thus indifferent, and this may be reflected in his health condition due to leadership behaviors. the researcher sought to test the relationship between black leadership behaviors and the impact they have on the job environment, specifically on the cases of fatigue that affect employees as a result of these behaviors. many organizations suffer from these behaviors. the research was applied in three business organizations that represent the health sector. the research population was the private sector in the al-najaf governorate. three hospitals were (ibn bilal national hospital, al-amir national hospital, and alghadeer national hospital). the total population size is (130) workers in these hospitals, and the research applied random sampling in selecting (100) individual workers, as the sample represented (77%) of the total research population. the research reached a number of conclusions and recommendations that confirm the existence of a relationship of correlation and influence between the two variables. therefore, the research will address four sections, where the first section is the methodological framework of the research, while the second section will address the theoretical framework of the research, while the third section will address the practical framework of the research, while the research came the last section presents the most important conclusions and recommendations reached by the research. the first topic scientific methodology of research this research deals with identifying the research problem, its importance, its goal, the hypotheses, and the hypothetical plan, which are : american journal of business management, economics and banking volume 22 march 2024 p a g e | 149 www.americanjournal.org first: the research problem leadership behaviors are one of the important topics in business organizations, and their importance increases day after day because they play an important role at all functional levels. therefore, leaders of organizations have an important share in the success or failure of those organizations by influencing their followers with their behaviors, as the leader creates positive feelings. in motivating employees with positive behaviors, and if he shows negative behaviors, it affects the motivation of employees negatively, which may cause harm to the organization. black leadership reflects part of the reality of leadership, which shows clear failures in organizations, which leads to negative consequences on the implementation of tasks, the quality of the work environment, efficiency, and relationships. with employees, it causes a state of exhaustion and psychological fatigue for the employees of the organization, as human resources are one of the most valuable assets of every organization, and managing them efficiently and effectively leads to the success of the organization. one of the most important influences of dark leadership behavior is job burnout, as job burnout arises due to mingling among employees. leaders in their work environment, which includes workload, control, reward, community, fairness, and value, and employees who constantly feel the need to respond to work-related communications and messages whether during or outside work hours are likely to experience physical and mental exhaustion. therefore, the problem of the research lies in answering the main research question: are there real repercussions of black leadership behaviors in achieving job exhaustion of the human resource in the organizations studied? the following questions arise from it: 1. do employees in private hospitals, the research sample, feel the dimensions and behaviors of black leadership (petty tyranny, toxic leadership, immoral leadership, narcissistic leadership, bad supervision, and destructive leadership)? 2. do the private hospitals in the research sample have dimensions of job burnout that affect the human resource? 3. do black leadership behaviors have an impact on the work environment and cause job exhaustion among human resources in the organizations studied? second: the importance of research the importance of the research can be summarized through the following points : 1. the research attempts to frame the most important intellectual and cognitive contributions related to the research variables within an integrated theoretical framework that includes theoretical contributions on relevant concepts and dimensions. 2. shedding light on the independent variable, black leadership behaviors, which are the most important basic means that negatively affect organizations in achieving goals and objectives through the psychological impact and physical, mental and emotional collapse of employees, as well as the negative feeling towards the job through increasing the job exhaustion of the human resource . 3. providing a model that explains the causal and reinforcing relationship between black leadership behaviors and its impact on the job exhaustion of the human resource . 4. the scarcity of topics that addressed the link between black leadership and human resource burnout. american journal of business management, economics and banking volume 22 march 2024 p a g e | 150 www.americanjournal.org third: research objectives this modest scientific contribution comes in line with the concerns expressed in the literature on the role of black leadership in job burnout in general and health service organizations in the private (civil) sector in particular. our research aims to the following: 1. knowing the important role of black leadership in increasing job burnout . 2. work to define the dimensions of black leadership and know the extent of its application in the reality of the iraqi environment, especially in private hospitals. 3. analyzing the results obtained through the questionnaire to determine the availability of the dimensions of black leadership and the availability of the dimensions of job exhaustion in the organizations investigated. fourth: research hypotheses the research hypotheses were formulated in light of the hypothetical research plan and the research objectives, which will be subject to testing and then their validity will be proven. the first main hypothesis: there is a statistically significant correlation between black leadership behaviors and their dimensions (petty tyranny, toxic leadership, immoral leadership, narcissistic leadership, bad supervision, destructive leadership) and job burnout at the overall level, and the following hypotheses branch out from it: a. the first sub-hypothesis: there is a statistically significant correlation between petty tyranny and job burnout at the macro level. b. the second sub-hypothesis: there is a statistically significant correlation between toxic leadership and job burnout at the overall level . c. the third sub-hypothesis: there is a statistically significant correlation between unethical leadership and job burnout at the overall level . th. the fourth sub-hypothesis: there is a statistically significant correlation between narcissistic leadership and job burnout at the overall level . d. the fifth sub-hypothesis: there is a statistically significant correlation between poor supervision and job burnout at the overall level . e. sixth sub-hypothesis: there is a statistically significant correlation between destructive leadership and job burnout at the aggregate level . the second main hypothesis: there is a statistically significant influence relationship between black leadership behaviors and their dimensions (petty tyranny, toxic leadership, immoral leadership, narcissistic leadership, bad supervision, destructive leadership) and job burnout at the overall level, and the following hypotheses branch out from it: a. the first sub-hypothesis: there is a statistically significant influence relationship between petty tyranny and job burnout at the macro level . b. the second sub-hypothesis: there is a statistically significant influence relationship between toxic leadership and job burnout at the overall level . c. the third sub-hypothesis: there is a statistically significant influence relationship between unethical leadership and job burnout at the overall level. american journal of business management, economics and banking volume 22 march 2024 p a g e | 151 www.americanjournal.org th. the fourth sub-hypothesis: there is a statistically significant influence relationship between narcissistic leadership and job burnout at the overall level. d. the fifth sub-hypothesis: there is a statistically significant influence relationship between poor supervision and job burnout at the overall level . e. sixth sub-hypothesis: there is a statistically significant impact relationship between destructive leadership and job burnout at the overall level. fifth: research plan the research plan was designed as a hypothetical plan in accordance with the research hypotheses. the researchers synthesized a hypothetical developer plan for the research that embodies a diagram of the relationship between black leadership and job burnout and the directions of their influence. see figure (1). black leadership will be measured based on the model (bahadır & çakırel, 2022: 14471448), in determining the dimensions of black leadership, which are: (petty tyranny, toxic leadership, immoral leadership, narcissistic leadership, bad supervision, destructive leadership). it will also be measured job burnout through its dimensions based on the model (lubbadeh, 2020:8 ) and (omidvar & beheshtifa,2013:108) in defining the dimensions of job burnout, which are: (emotional exhaustion, depersonalization (personal tendency), poor personal achievement). figure (1) hypothetic research chart source: prepared by the researchers based on the sources mentioned in developing the measurement tool sixth: research methodology which reinforces the current research trend, adopting the descriptive approach based on cognitive analysis and the data provided by the researchers through oral and written surveys (questionnaires). seventh: data collection tools 1. the theoretical aspect: in covering this theoretical aspect of the research, the researchers used the available sources, specifically foreign scientific research from reputable international scientific journals, which represented an essential aspect in the researchers’ access to the latest research and studies that covered the theoretical aspect of the research . 2. the practical aspect: the research used the questionnaire as a main source in obtaining data on the research variables. the questionnaire consists of two parts, the first part is concerned with black driving behaviors, while the second part of the questionnaire consists of job burnout and job burnout emotional exhaustion depersonalization (depersonalization( poor personal achievement black leadership behaviors petty tyranny toxic leadership unethical leadership bad supervision narcissistic leadership destructive driving american journal of business management, economics and banking volume 22 march 2024 p a g e | 152 www.americanjournal.org burnout. the number of questionnaire items included (30) items distributed among the research variables, distributed among the subvariables by (18) items for the black leadership variable, with three questions for each dimension, and (12) items for the job exhaustion variable, with four questions for each dimension. eighth: the research population and sample three hospitals operating in the private sector were selected, which are business organizations that represent the private (private) sector that provide large and important health and medical services that have a reputation in the al-najaf governorate. the research population reached (130) employees in three private hospitals, and the research applied random sampling. in selecting (100) workers, the sample represented (77%) of the total research population. the sample was chosen according to the requirements of the research, as the behaviors of black leadership and the dimensions of job burnout are important and are the responsibility of the organization’s senior management, their dealings with employees, and the extent of their ability to create an environment free of cases of exhaustion and fatigue that affect working human resources. the following is a table showing the specific numbers. in the three organizations. table (1) research population and sample number of questionnaires suitable for statistical analysis number of questionnaires retrieved number of questionnaires distributed total number of employees the organization no 24 27 30 31 bin bilal al ahli hospital 1 41 44 50 54 prince al ahly hospital 2 35 38 40 45 al-ghadeer national hospital 3 100 109 120 130 the total source: prepared by the researcher based on information from the human resources department in the surveyed organizations ninth: limits of research 1. human limitations: the human limitations of the research included all workers in the surveyed hospitals at various job levels (doctors, physician assistant, laboratory assistant, nurses). 2. spatial boundaries: it included three private hospitals in the al-najaf governorate, which are: (bin bilal al-ahli hospital, al-amir al-ahli hospital, and al-ghadeer al-ahli hospital). 3. time limits: the research, both theoretical and practical, lasted for the period from 1/9/2022 to 23/8/2023. american journal of business management, economics and banking volume 22 march 2024 p a g e | 153 www.americanjournal.org the second topic theoretical framework for research variables black leadership behaviors and job burnout first: black leadership 1. the concept of black leadership: describes (furtner et al., 2017:83) the concept of black leadership. dominant people are powerhungry and manipulative. the characteristics of black leadership are linked to the characteristics of the dark triad, which is the need to show power and an orientation to social dominance. social dominance means that leaders prefer to control conversations and put pressure on social dominance is a viable construct for distinguishing leaders from non-leaders. in fact, dominance has been described as one of the first traits related to leadership. dominant people have a greater likelihood of emerging as leaders, being promoted to positions of authority, and appearing as competent and possessing strong authority. (tandon & mishra,2017:278) define black leadership as “systematic and repetitive behavior by a leader, supervisor, or manager that ignores the goals, duties, resources, effectiveness of the organization, the well-being of its subordinates, and the legitimate interest of the organization by impairing job satisfaction. and he sees (einarsen et al., 2007: 2) black leadership is “a leadership approach that poisons creativity, autonomy, and innovative behaviors in what people do and ultimately harms the organization.” black leadership can be defined as negative personality traits of individual leaders that negatively influence decisions made on behalf of the organization and behaviors toward the public (dobbs & do, 2019:7). (ballı & koca ballı, 2017:73) explain that black leadership is “frustrating, narcissistic, insincere, and domineering behavior that constitutes the dark side of leadership and is displayed towards one or more followers, causing psychological harm to the followers. and he mentions (saleh et al., 2018: 35) black leadership contains different types of inherent behavior such as sarcasm, lying, deceiving employees, accusing the wrong person of mistakes, and discrimination. the researchers believe that black leadership is organized and repeated behavior by a leader, supervisor, and manager that undermines the legitimate interest of the organization by harming the purposes, duties, resources, effectiveness, and job satisfaction of subordinates. 2. black driving dimensions: our study in this research relied on the model (bahadır & çakırel, 2022: 1447-1448) in defining the dimensions of black leadership, which are six dimensions. below is a brief explanation of each of these dimensions: a. small tyranny: small tyranny is defined as the type of leadership in which leaders use their authority over others, mainly their subordinates. in his work, the small tyrant expresses the characteristics of leadership in the form of arbitrary movement, self-deprecation, exaggeration, boasting, ignoring, difficulty resolving conflicts, discouraging attempts, and unjustified punishment . b. toxic leadership: the toxic leadership dimension describes that individuals who display destructive behaviors and have dysfunctional personality traits can cause serious and lasting harm to individuals, groups, organizations, societies, and even outside them. therefore, a form of leadership is defined that consists of negative characteristics that have negative effects as a result of the attitudes american journal of business management, economics and banking volume 22 march 2024 p a g e | 154 www.americanjournal.org and behaviors they exhibit. towards employees within the organization and reducing the overall performance of the organization as toxic leadership. c. unethical leadership: what is meant by unethical leadership are actions carried out by leaders of organizations that are illegal and/or in violation of ethical standards, decisions made, and decisions that impose processes and structures that promote unethical behavior by followers . d. bad supervision: what is meant by the dimension of bad supervision is subjective evaluations of the continuous hostile, non-physical, verbal and non-verbal behavior of the superior supervisor towards the subordinates . e. narcissistic leadership: (furtner et al., 2017:84-85) narcissistic leaders are viewed as arrogant, controlling, and tyrannical. leaders believe that narcissists are highly motivated to gain the respect of others and receive affirmation of their superiority, and that these desires are driven by the need to compensate for repressed feelings of inferiority and their self-esteem is extremely weak in their quest for admiration, and that narcissistic leaders seek leadership positions (weaver & yancey, 2010:105) . f. destructive leadership: he defines the dimension of destructive leadership in his work as “a leader’s repeated and systematic display of behaviors that have the potential to weaken the organization’s assets, activities, and relationships in defiance of the established rules of the organization or regardless of their formality, or that may result in harming the quality of work life of individuals working with the motive of obtaining personal financial interest or spiritual satisfaction. second: job exhaustion 1.the concept of job burnout fatigue is the central characteristic of fatigue and the most visible manifestation of this complex syndrome. when people describe themselves or others as experiencing exhaustion, they are most often referring to the experience of burnout, with job burnout being the most prevalent. although burnout reflects the stress dimension of burnout, it fails to capture critical aspects of people's relationship with their work. exhaustion is not something that is simply experienced but rather prompts actions to distance oneself emotionally and cognitively from one's work (maslach et al. 2014: 402-403). job burnout means that prolonged exposure to stress at work has many costs to the organization and the employees themselves. value job burnout is identified by its association with different types of unfavorable organizational outcomes (e.g., absenteeism), different types of health problems (e.g., cardiovascular problems). ) and mental problems (such as insomnia) (lubbadeh, 2020:7). job burnout refers to a feeling of excessive fatigue and tends to deplete an individual's emotional and material resources. it represents the element of cynicism (or depersonalization) interwoven after the vocal context of burnout and refers to a negative, harsh, or overly detached response to various aspects of the job and it represents the element of ineffectiveness (or low achievement) (maslach & leiter 2008:498). job burnout represents an emotional reaction and response to ongoing stress known as burnout in the deterioration or depletion of emotional and cognitive resources over time (swider & zimmerman, 2010: 488). whereas, employees at risk of burnout (i.e., who suffer from chronic fatigue and have a negative, cynical attitude toward work and american journal of business management, economics and banking volume 22 march 2024 p a g e | 155 www.americanjournal.org exhibit poor functioning may experience serious health problems over the course of time. the problem is that once employees experience high levels of burnout, they often continue to get into trouble. (bakker & costa,2014:1). job burnout represents a prolonged response to chronic emotional and personal stressors at work and the individual places the stress of the experience within a larger organizational context of people’s relationship with their work. work on burnout expands internationally. the focus on engagement, which is the positive opposite of burnout, promises to yield new results (omidvar beheshtifar,2013:108). the researchers believe that the concept of job burnout is a set of emotional and personal pressures in addition to workplace pressures that affect the individual and cause stress and weakness for the employee, which causes an imbalance in the employee and causes inefficient and good performance in the workplace . 2. dimensions of job burnout i agree ) lubbadeh, 2020) and (omidvar & beheshtifar,2013:108) that there are three dimensions of job burnout, which are as follows: a. emotional exhaustion emotional exhaustion is an exploratory factor of burnout and is the most important dimension of burnout and is widely reported and analyzed. emotional exhaustion is defined as “the result of severe physical, emotional, and cognitive stress, such as prolonged exposure to specific work demands (khan, 2434: 2015). it means a discharge of energy.” and the consumption of emotional energy sources. this dimension can be considered the cornerstone of job exhaustion (omidvar beheshtifar & 108: 2013). it represents a danger in individualistic societies. one would expect that when someone is emotionally exhausted, it will affect the individual’s performance and may raise questions about the individual’s suitability for the job. and the foundation (1: 2015, et al. tourigny). b. depersonalization (depersonalization) personality that separates workers from others and causes them to be pessimistic about colleagues, clients and the organization. this dimension of job burnout is prevalent among those employees who regularly come into contact with other people (e.g. teachers, students, customers and patients). (omidvar & beheshtifar,2013:108) it is behavior intended to harm another person that is motivated by avoidance of being harmed such as distraction-rumination, emotional lability, impulsivity, anger, narcissism, trait aggression, sensation seeking, trait anger, and personality type (bettencourt et al.,2006:752). c. poor personal achievement through which a person reaches negative self-evaluation and poor evaluation (omidvar & beheshtifar,2013:108) and it represents a feature of the cognitive and behavioral dispositions and emotional components such as the sequence of procrastination behavior and results in a substandard behavioral product that involves a task that the procrastinator sees as important for his performance resulting in a state of emotional disturbance, which also means that the intention must be carried out. it frustrates individuals' stated purposes simply by postponing them until it is too late or almost too late (beheshtiar et al.,2011:61). american journal of business management, economics and banking volume 22 march 2024 p a g e | 156 www.americanjournal.org the third topic the practical side of research first: testing the normal distribution of the data diagnosing the statistical methods that are suitable for statistical analysis requires identifying the nature of the adopted data, whether it is parametric or non-parametric, followed by the step of testing the hypotheses assumed by the study. this requires the availability of several conditions, including identifying the extent of homogeneity of the variance or not, and the extent of the distribution of the data for the population from which it was drawn. from the sample, because there are many samples that are unnaturally distributed, which makes some parametric statistical tests not give results that can be relied upon, such as the t test and f test, which requires a normal distribution by diagnosing the values of the skewness coefficients. and kurtosis, as the skewness coefficient indicates a measure of the symmetry or asymmetry of the data, as symmetrical data are normally distributed, while the flatness coefficient diagnoses the measurement of the height of the peak of the distribution. the extracted values, whether negative or positive, show the direction of the distribution to the right or left, and if if the extracted values are equal to (0), this indicates that the data is absolutely symmetrical. also, if the values of the skewness coefficients are close to (0), it indicates that the data is distributed “normally”, for which the acceptable values for them range between (= ± 1.96). according to (hair et al., 2017: 76). results of the normal distribution test for the black driving behavior variable: this is evident from the data in table (2), which shows the results of the normal distribution test for the approved sample, for which the acceptable values range between (= ± 1.96) according to (hair et al., 2017: 76). which means that the items that measure each dimension are distributed normally with regard to the variable black leadership. table (2): results of the normal distribution of the black leadership behaviors variable std. error of skewness std. error of kurtosis .2230 .487 0 dimensions coding ( skewness ) ( kurtosis ) petty tyranny le1 -0.155 -1.071 le2 -0.464 -0.774 le3 -0.135 -0.894 le4 0.576 -0.602 toxic leadership cpp1 -0.347 -1.142 cpp2 -0.787 -0.013 cpp3 -0.436 -1.203 cpp4 -1.068 0.557 unethical leadership cb1 -0.238 -1.274 cb2 -0.362 -1.160 cb3 -0.155 -1.071 cb4 -0.464 -0.774 bad supervision lw1 -0.135 -0.894 lw2 0.576 -0.602 lw3 -0.351 -1.015 lw4 -0.277 -1.030 american journal of business management, economics and banking volume 22 march 2024 p a g e | 157 www.americanjournal.org narcissistic leadership tr1 -0.166 -1.111 tr2 0.178 -1.403 tr3 -0.323 -1.199 tr4 -0.495 -1.202 unethical leadership sl1 -0.340 -1.479 sl2 -0.515 -1.154 sl3 0.058 -1.655 sl4 -0.253 -1.686 source: prepared by the researcher according to the outputs of the (spss v.25) program. results of the normal distribution test for the job fatigue variable: this is evident from the data in table (3), which shows the results of the normal distribution test for the approved sample, and the acceptable values for them range between (= ± 1.96) according to (hair et al., 2017: 76). which means that the items that measure each dimension are distributed normally with regard to the variable job exhaustion. table (3) results of the normal distribution of the job exhaustion variable std. error of skewness std. error of kurtosis .2230 .4870 dimensions coding ( skewness) ( kurtosis) emotional exhaustion st1 -0.566 -0.865 st2 -0.513 -0.553 st3 -0.457 -0.989 st4 -0.427 -1.180 depersonalization pr1 -0.502 -1.047 pr2 0.010 -0.934 pr3 -0.120 -0.052 pr4 0.379 -0.831 poor personal achievement te1 -0.126 -1.109 te2 -0.291 -1.346 te3 -0.566 -0.865 te4 -0.513 -0.553 source: prepared by the researcher according to the outputs of the (spss v.25) program. second: testing the measurement tool virtual sincerity : face validity was achieved by presenting the questionnaire to a group of expert arbitrators with experience and specializations in business administration sciences, as their number reached (8) professors specialized in the field of administrative sciences whose names are listed in appendix (1) to ensure that the items of the scale belong to its sub-dimensions. and the extent to which it was characterized by clarity, accuracy, and the purpose for which it was prepared. the comments of the american journal of business management, economics and banking volume 22 march 2024 p a g e | 158 www.americanjournal.org arbitrators were taken into account, and amendments were made, including additions and deletions, to give it greater clarity and achieve accuracy in measurement, so that it became in its final form in appendix (2), and thus the apparent validity and content validity were achieved. third: evaluation of the measurement model a. evaluating the measurement model for the black leadership behavior variable: the independent variable, black leadership behaviors, consists of six dimensions. the measurement model for the black leadership variable was evaluated according to the following table (4) : table (4) results of testing the measurement model for the black leadership variable dimensions cronbach's alpha composite reliability ave petty tyranny 0.892 0.895 0.755 toxic leadership 0.954 0.958 0.878 unethical leadership 0.886 0.889 0.745 bad supervision 0.938 0.940 0.843 narcissistic leadership 0.881 0.884 0.739 destructive driving 0.932 0.934 0.831 source: prepared by the researcher based on the outputs of the (smartpls 4) program. the results of cronbach's alpha values, composite reliability, and average variance extracted using the statistical program (smartpls), which provides testing of these methods, showed the following: •all dimensions of black leadership achieved a cronbach’s alpha coefficient, which exceeded (0.70), and according to these results, reliability was achieved . •all dimensions of black leadership achieved a composite reliability coefficient that exceeded (0.60), and according to these results, internal consistency was achieved . •all dimensions of black leadership achieved (average variance extracted) ratios, as they exceeded (0.50), thus achieving the efficiency of the paragraphs. this is evidence that the study scale and all its items are characterized by a high degree of stability and internal consistency. these indicators qualify the study for subsequent tests. b. evaluation of the measurement model for the job fatigue variable : the measurement model for the job fatigue variable was evaluated according to the following table (5(: table (5): results of testing the measurement model for the job exhaustion variable dimensions cronbach's alpha composite reliability ave emotional exhaustion 0.953 0.957 0.876 depersonalization 0.948 0.950 0.864 poor personal achievement 0.901 0.908 0.773 source: prepared by the researcher based on the outputs of the (smartpls 4) program. american journal of business management, economics and banking volume 22 march 2024 p a g e | 159 www.americanjournal.org the results of cronbach's alpha values, composite reliability, average variance extracted, discriminant validity, and exploratory factor analysis using the statistical program (smartpls), which provides testing of these methods, showed the following: •all dimensions of job exhaustion achieved a cronbach’s alpha coefficient, which exceeded (0.70), and according to these results, stability was achieved. •all dimensions of job exhaustion achieved a composite reliability coefficient that exceeded (0.60), and according to these results, internal consistency was achieved . •all dimensions of job exhaustion achieved percentages (average variance extracted), which exceeded (0.50), and thus the efficiency of the paragraphs was achieved . this is evidence that the study scale and all its items are characterized by a high degree of stability and internal consistency. these indicators qualify the study for subsequent tests. fourth: descriptive analysis of the black leadership variable: to determine the level of availability of the independent variable black leadership in the researched organization, which is represented by six dimensions. a number of tests were conducted related to (mean and standard deviation). the response of the study sample to the black leadership variable, as shown in the results of table (6), is that the arithmetic mean of black leadership is (3.044), which is equal to the hypothesized mean of the study scale of (3), and a standard deviation of (0.922), which indicates homogeneity and consistency of responses. at an interest level of (0.609). table (6) descriptive statistical analysis of the black leadership variable no black leadership arithmetic mean standard deviation relative significance arrangement of paragraphs 1 petty tyranny 2.951 0.975 0.590 4 2 toxic leadership 3.286 1.040 0.657 2 3 unethical leadership 3.307 1.134 0.661 1 4 bad supervision 3.162 0.969 0.632 3 5 narcissistic leadership 2.863 1.142 0.573 5 6 destructive driving 2.693 1.124 0.539 6 full scale 3.044 0.922 0.609 source: prepared by the researcher according to the outputs of the (spss.v25) program as for the level of black leadership, (immoral leadership) achieved the first rank among the other dimensions with a level of importance (0.661), while (destructive leadership) achieved the last rank with a level of importance (0.539). in addition to the low level of black leadership (petty tyranny, narcissistic leadership, destructive leadership). fifth: descriptive analysis of the variable job exhaustion : to determine the level of availability of the dependent variable, job fatigue, in the researched organization, which is represented by four dimensions. a number of tests were conducted related to (mean and standard deviation). the response of the study sample to the variable of job exhaustion, as shown by the results of table (7), is that the arithmetic mean of job exhaustion is (3.307), which is american journal of business management, economics and banking volume 22 march 2024 p a g e | 160 www.americanjournal.org slightly higher than the hypothesized mean of the study scale of (3), and a standard deviation of (1.17), which indicates homogeneity and consistency of responses. at an interest level of (0.661). table (7) descriptive statistical analysis of the job exhaustion variable no dimensions of job burnout arithmetic mean standard deviation relative significance arrangement of paragraphs 1 emotional exhaustion 3.255 1.134 0.651 3 2 depersonalization 3.397 1.084 0.679 2 3 poor personal achievement 3.485 1.227 0.696 1 full scale 3.307 1.17 0.661 source: prepared by the researcher according to the outputs of the (spss.v25) program as for the dimensions of job exhaustion, the dimension (poor personal achievement) achieved the first rank among the other dimensions with a level of importance (0.696), while the dimension (emotional exhaustion) achieved the last rank with a level of importance (0.618). sixth: testing correlations: this paragraph includes identifying the extent to which there is a correlation between the variables and dimensions of the study according to the hypotheses stated in the research methodology. the pearson correlation coefficient will be used to test the relationships according to the statistical programs (spss v.25) and my agencies : testing the first main hypothesis: table (8) related to the correlation matrix showed that black leadership has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.864) at a significant level (0.01). this correlation can be explained by the availability of black leadership in the organization under study. it will enhance... job exhaustion, and this supports the validity of the researcher’s hypothesis. table (8) summary of correlations between the research variables variables dimensions of black leadership small tyranny toxic leadership unethical leadership bad supervision narcissistic leadership destructive leadership job burnout pearson correlation 0.864* 0.792* 0.852* 0.756* 0.866* 0.674* 0.582* sig. (2-tailed) <.001 <.001 <.001 <.001 <.001 <.001 <.001 n 92 * correlation is significant at the 0.01 level (2-tailed). source: prepared by the researcher according to the outputs of the (spss.v25) program from which the following sub-hypotheses are tested: testing the first sub-hypothesis: table (8) showed that minor tyranny has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.792) at a significant level (0.01), and this supports the validity of the researcher’s hypothesis . american journal of business management, economics and banking volume 22 march 2024 p a g e | 161 www.americanjournal.org testing the second sub-hypothesis: table (8) showed that toxic leadership has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.852) at a significant level (0.01), and this supports the validity of the researcher’s hypothesis . testing the third sub-hypothesis: according to the results of table (8), unethical leadership has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.756) at a significant level (0.01). testing the fourth sub-hypothesis: table (8) shows that bad supervision has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.866) at a significant level (0.01), and this supports the validity of hypothesis (h11-4) . testing the fifth sub-hypothesis: table (8) showed that narcissistic leadership has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.674) at a significant level (0.01), and this supports the validity of the researcher’s hypothesis . testing the sixth sub-hypothesis: as shown in table (8) related to the correlation matrix, destructive leadership has a significant correlation with job exhaustion at the overall level. the value of the correlation coefficient between them reached (0.582) at a significance level (0.01). seventh: testing influence relationships this paragraph includes identifying the extent to which there is a significant influence relationship between the variables and dimensions of the study. a statistical program (smartpls 4) will be used to estimate the influence factor and the coefficient of determination (r2), which are as follows: testing the second main hypothesis : to demonstrate the extent of the relationship between the moral impact of black leadership on job burnout at the aggregate level. the apparent structural model was built using a statistical program (smartpls 4), and is shown in figure (2), the results of which are presented in table (9). figure (2): the structural model for testing the second main hypothesis source: from the outputs of the smartpls 4 program. note: the numbers in the arrows represent the path coefficient, while the numbers in the circles represent the coefficient of determination, and the symbol [+] indicates hiding the paragraphs belonging to the variable because they are not needed in evaluating the structural model. american journal of business management, economics and banking volume 22 march 2024 p a g e | 162 www.americanjournal.org table (9): results of evaluating the structural model for the second main hypothesis path original sample r2 standard deviation (stdev) t statistics (|o/stdev|) p values mls→jb 0.894 0.800 0.019 46.086 <0.001 source: prepared by the researcher according to the outputs of the (smartpls 4) program. according to the results of figure (2) and table (9), the following is evident: •the independent variable (black leadership) explains 80% of the variance occurring in the dependent variable (job exhaustion). •the influence factor was (0.894), which means that black leadership increases job exhaustion. that is, whenever the variable black leadership increases by one unit, job exhaustion will increase by (0.894), which is a positive effect with a high moral degree, as the probability value of the influence relationship was (p-value). <0.001) which is less than (0.05). for the purpose of testing the six sub-hypotheses that emerge from the effect of the independent variable on the dependent variable, the apparent structural model was built using a statistical program (smartpls 4), and is shown in figure (3), the results of which are presented in the table and the results of which are presented in table (10) as follows: figure (3) the structural model for testing the second sub-hypotheses source: from the outputs of the smartpls 4 program. note: the numbers in the arrows represent the path coefficient, while the numbers in the circles represent the coefficient of determination, and the symbol [+] indicates hiding the paragraphs belonging to the variable because they are not needed in evaluating the structural model. american journal of business management, economics and banking volume 22 march 2024 p a g e | 163 www.americanjournal.org table (10): results of evaluating the structural model for the second sub-hypotheses path original sample f2 r2 standard deviation (stdev) t statistics (|o/stdev|) p values le→jb 0.206 0.144 0.8 0.073 2.816 0.006 cpp→jb 0.339 0.320 0.071 4.760 <0.001 cb→jb 0.419 0.355 0.109 3.859 <0.001 lw→jb 0.414 0.389 0.091 4.569 <0.001 tr→jb 0.319 0.310 0.098 3.247 <0.001 sl→jb 0.073 0.014 0.071 1.026 0.307 source: prepared by the researcher according to the outputs of the smartpls 4 program. testing the first sub-hypothesis: according to the results of table (10), it was found that the impact factor reached (0.206), which means that small tyranny increases job fatigue. that is, whenever small tyranny increases by one unit, job fatigue will increase by (20.6%). this is a good positive effect with a high moral degree, as the value the probability (0.006) is less than (0.05), and according to these results, the researcher’s hypothesis is accepted . testing the second sub-hypothesis : according to the results of table (10), it was found that the impact factor reached (0.339), which means that toxic leadership increases job fatigue. that is, whenever toxic leadership increases by one unit, job fatigue will increase by (33.9%), which is a good positive effect with a high moral degree, since (p-value<0.001<0.05), and therefore the hypothesis is accepted . testing the third sub-hypothesis : according to the results of table (10), it was found that the impact factor reached (0.419), which means that unethical leadership increases job exhaustion. that is, whenever unethical leadership increases by one unit, job exhaustion will increase by (41.9%), which is a good positive effect with a high moral degree, as it the probability value is (p-value<0.001<0.05), and therefore the hypothesis is accepted . testing the fourth sub-hypothesis : the results of table (10) showed that the influence factor was (0.414), which means that bad supervision increases job exhaustion. that is, whenever the driving strategy of poor supervision increases, the work is one unit, job exhaustion will increase by (41.4%), which is a good positive effect. highly significant (p-value<0.001<0.05), and therefore the hypothesis is accepted . testing the fifth sub-hypothesis: according to the results of table (10), it was found that the influence factor reached (-0.319), which means that narcissistic leadership increases job exhaustion. that is, whenever narcissistic leadership increases by one unit, job exhaustion increases by (31.9%). this is a positive effect with a high moral american journal of business management, economics and banking volume 22 march 2024 p a g e | 164 www.americanjournal.org degree, as the value the probability is (0.002), which is less than (0.05), and therefore the hypothesis is accepted . testing the sixth sub-hypothesis: according to the results of table (10), it was found that the impact factor was (0.073), which means that destructive leadership increases job fatigue. that is, whenever destructive leadership increases by one unit, job fatigue increases by (7.3%), which is a positive effect. the (p-value=0.307) is higher than (0.05), and according to these results, the hypothesis is rejected . based on the above, it was found that there is a significant impact of five dimensions of black leadership in the organization under study, which are (petty tyranny, toxic leadership, immoral leadership, bad supervision, and narcissistic leadership). the fourth section conclusions and recommendations first: conclusions 1. the behaviors of black leadership in business organizations kill the morale of employees, as subordinates see that the behaviors of these leaders represent and express the organization, which reinforces their feeling that the organization will not intervene to protect and defend them, and thus they become disengaged with the organization and become despondent, frustrated, and disappointed. hope and perhaps the emergence of feelings of hatred for the work environment as a whole . 2. black leadership behaviors have a major role in influencing subordinates in the work environment in general and directly on their behavior and not directing them in line with the organization’s goals. these behaviors create a stressful work environment in which workers do not want to accomplish the tasks assigned to them as a result of negative behaviors by senior management . 3. job burnout represents a psychological state that may be called a chronic condition that afflicts an employee at work, as a result of several factors that senior management has a role in creating or their inability to confront, such as cases of stress, tension, anxiety, work pressures, and other behaviors that have a negative impact on physical activity. and employee psychology. 4. job burnout reduces productivity in the work environment and poses a major challenge to human resources in performing the tasks assigned to them. 5. .the independent variable (black leadership) explains 80% of the variance occurring in the dependent variable (job exhaustion), and the impact factor reached (0.894), which means that black leadership behaviors increase job exhaustion in the work environment, that is, the more if black leadership behaviors increase by one unit, job exhaustion will increase by (0.894), which is a positive effect with a highly significant degree . 6. through testing the influence relationships, it was revealed that there is a significant impact of five dimensions of black leadership in the organizations studied, which are (petty tyranny, toxic leadership, immoral leadership, bad supervision, and narcissistic leadership), as these dimensions have a significant impact in causing and creating job exhaustion in the work environment. american journal of business management, economics and banking volume 22 march 2024 p a g e | 165 www.americanjournal.org second: recommendations 1. it is necessary for the researched organizations to work to create an organizational culture that reduces behaviors related to the dimensions of black leadership in order to confront the ongoing environmental changes that have a direct impact on the human resource . 2. it is necessary to focus on leadership behaviors that limit cases of quick anger and tendencies toward excessive emotion and the ability to spread a spirit of cooperation and hope among coworkers, which is reflected in the organization’s core capabilities. 3. senior management in the surveyed organizations must work to reduce cases of job burnout, which in turn affects the efficiency and effectiveness of employees to achieve organizational goals and provide high value to the organization among other organizations 4. the necessity of spreading the spirit of justice, tolerance and love in the work environment and among co-workers in order to avoid negative behaviors that have a significant impact on the organizational reality. 5. work to involve employees in decisions, take their opinions and suggestions to develop job work, and exert maximum efforts in everything that would achieve a safe work environment based on high morale towards achieving organizational goals. 6. the need for senior management to discuss private matters that constitute a source of concern for employees and work to create a positive image that reassures employees and reduces the problems and difficulties they face . 7. this results in employees modifying their behaviors and looking for ways to improve and raise their morale to confront negative behaviors that may come from the organization’s senior management . 8. workers should look for support, whether through co-workers, friends, lovers, or others. support and cooperation can help the individual adapt to work pressures and confront behaviors that may cause job exhaustion. references 1. bahadır, n., & çakırel, y. (2022). the effect of dark leadership on organizational commitment: a research in the banking sector. i̇şletme araştırmaları dergisi, 14(2), 1446-1462. 2. bakker, a. b., & costa, p. l. (2014). chronic job burnout and daily functioning: a theoretical analysis. burnout research, 1(3), 112-119. 3. ballı, e., & koca ballı, a. i̇. (2017). karanlik liderlik ve örgütsel etik i̇klim arasındaki i̇lişki: otel i̇şletmelerinde bir araştırma. in the first international congress on future of tourism (pp. 7481). 4. beheshtifar, m., & omidvar, a. r. (2013). causes to create job burnout in organizations. international journal of academic research in business and social sciences, 3(6), 107. 5. beheshtifar, m., hoseinifar, h., & moghadam, m. (2011). effect procrastination on work-related stress. european journal of economics, finance and administrative sciences, 38(38), 59-64. 6. bettencourt, b., talley, a., benjamin, a. j., & valentine, j. (2006). personality and aggressive behavior under provoking and neutral conditions: a meta-analytic review. psychological bulletin, 132(5), 751. 7. dobbs, j. m., & do, j. j. (2019). the impact of perceived toxic leadership on cynicism in officer candidates. armed forces & society, 45(1), 3-26. american journal of business management, economics and banking volume 22 march 2024 p a g e | 166 www.americanjournal.org 8. einarsen, s., aasland, m. s., & skogstad, a. (2007). destructive leadership behaviour: a definition and conceptual model. the leadership quarterly, 18(3), 207-216. 9. furtner, m. r., maran, t., & rauthmann, j. f. (2017). dark leadership: the role of leaders’ dark triad personality traits. leader development deconstructed, 75–99. doi:10.1007/978-3-31964740-1_4. 10. khan,faysal,(2015)," effect of emotional exhaustion on organizational commitment among academicians 11. " , https://www.researchgate.net/publication/270575476 12. lubbadeh, t. (2020). job burnout: a general literature review. international review of management and marketing, 10(3), 7. 13. maslach, c., & leiter, m. p. (2008). early predictors of job burnout and engagement. journal of applied psychology, 93(3), 498. 14. maslach,chrristina,leite,michael,schaufeli,wlimar b,(2014),"job burnout", https://www.researchgate.net/publication/228079161 15. saleh, h. g., hu, w., hassan, h. m., & khudaykulova, m. (2018). dark leadership impact on psychological well-being and work-family conflict: implications for project success of bahrain companies. journal of international business research and marketing, 3(3), 32-39. 16. swider, b. w., & zimmerman, r. d. (2010). born to burnout: a meta-analytic path model of personality, job burnout, and work outcomes. journal of vocational behavior, 76(3), 487-506. 17. tandon, p., & mishra, s. (2017, july). confronting the dark side of leadership: a conceptual framework. in proceedings of international conference on strategies in volatile and uncertain environment for emerging markets (vol. 14, pp. 275-281). 18. tourigny,louise,han,jian,baba,vishwwanath v,(2015)," emotional exhaustion and job performance: the mediating role of organizational commitment", https://www.researchgate.net/publication/254299325 19. weaver, s. g., & yancey, g. b. (2010). the impact of dark leadership on organizational commitment and turnover. leadership review, 10(summer), 104-124. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 119 www.americanjournal.org some issues of improving the prosecutor’s control over compliance with the legislation regarding the execution of court documents and documents of other authorities kamol mardonov senior lecturer of tashkent state university of law k.mardonov@tsul.uz a b s t r a c t k e y w o r d s this article deals with judicial reforms implemented in uzbekistan, their content, enforcement of court decisions, simplification of enforcement mechanisms. also, the activities of the bureau of compulsory enforcement and normative legal documents in this direction are analyzed. court documents, prosecutor's supervision, enforcement procedures, effective mechanism, nonproprietary dispute, recovered funds. introduction it is known that consistent work is being done in our country to improve the communication of state bodies with the population, to ensure reliable protection of the rights and freedoms of citizens, and to introduce modern mechanisms for solving their problems. in his address to the oliy majlis, the president of the republic of uzbekistan, shavkat mirziyoyev, once again mentioned that the effectiveness of our reforms today largely depends on four important factors that is, ensuring the rule of law, fighting corruption, increasing institutional capacity and building strong democratic institutions1. it should be noted that the largest and most noteworthy of the reforms implemented in the life of our country are judicial reforms. the central direction of this field is the rule of law in all spheres of society and state life, i.e. economic, social, political and spiritual aspects. in this, the unconditional application and application of existing laws is of particular importance. for this purpose, special attention is being paid to the issue of further improvement of the system of mandatory execution of court decisions within the framework of judicial reforms being implemented in our country. further simplification of enforcement procedures, ensuring the unconditional and timely execution of court documents and documents of other bodies, effective protection of the rights of individuals and 1 address of the oliy majlis president of the republic of uzbekistan shavkat mirziyoyev // “xalq so‘zi” newspaper. january 25, 2020 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 120 www.americanjournal.org legal entities, and putting an end to censorship in the course of enforcement work are the most important directions of improvement in this area. at the same time, in order to further strengthen citizens' confidence in justice, to strengthen the authority and effectiveness of the judiciary, it is required to further increase the efficiency of the execution of court documents and documents of other bodies. in this regard, there was a need to optimize the structure and powers of the bureau of compulsory enforcement under the general prosecutor's office, to fundamentally revise its working methods, to strengthen cooperation with interested ministries and agencies, and local state authorities. ensuring the reliable protection of the rights and legal interests of citizens and entrepreneurs, introducing effective mechanisms for timely and quality execution of court documents and documents of other bodies, ensuring full enforcement of court documents within legal terms, strengthening the trust of citizens in the courts while increasing the authority of the courts, serving to guarantee the protection of their interests. therefore, the question of quality and time is always relevant in the same topic. at the video selector meeting held under the chairmanship of the president of the republic of uzbekistan shavkat mirziyoyev on measures to improve the system of execution of court documents, it was determined that work on reducing existing debts will be carried out in a separate system at the level of the country, at the level of regions and districts. compilation of address lists of debtors in a difficult situation, assistance to them, decision-making on suspension of execution proceedings at the request of the collector was transferred from the courts to the state bailiff. the chamber of commerce and the business ombudsman was given the right to apply for delaying the execution or partial execution of the debts of the business entities on the execution documents that provide for the recovery of the state income. priorities were defined regarding the need to create a single electronic platform for debtors, to integrate them into the base of notary, bank, tax, state services, customs, cadastre, internal affairs and other agencies, and to introduce amendments to the legislation on other issues2. according to the 18th aim of the "new development strategy of uzbekistan for 2022-2026", approved by the decree of the president of the republic of uzbekistan no.60 dated january 28, 2022, introduction of effective mechanisms for the execution of documents of courts and other bodies, alternative execution of documents of courts and other bodies , including the expansion of the use of extrajudicial methods, the gradual introduction of international standards into the activities of mandatory executive bodies and the transfer of certain functions (except court documents) to the private sector, reducing the workload of state executives, and others were identified as priority directions for the development of this field. as we all know, the role of prosecutor's office in ensuring the implementation of the law is very important. speaking about the role of the prosecutor's office in state management, the head of state said, "the role of the prosecutor's office in comprehensively strengthening the legal framework and unconditional enforcement of laws, increasing the legal culture of citizens, developing a democratic legal state, supporting the development of private property and entrepreneurship, and ensuring its reliable protection is great." 2 a video selector meeting was held under the chairmanship of the president of the republic of uzbekistan shavkat mirziyoev on "measures to improve the system of execution of court documents". february 16, 2021. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 121 www.americanjournal.org in connection with the liberalization of ownership, business activity and contractual relations, the practice of collecting debts from legal entities on executive documents has become somewhat complicated. due to the possibility of uncontrollable profits, the problem of collecting debts from individuals has escalated. in order to eliminate such problems, the decree of the president of the republic of uzbekistan no.3406 dated march 11, 2004 approved the "structure of the general prosecutor's office of the republic of uzbekistan" and established the "department of control over compliance with the laws in the execution of court decisions and detention of detainees" of the general prosecutor's office and regional departments have been established and their main activities have been defined. in order to further increase the effectiveness of the prosecutor's control over the observance of laws in the execution of court documents and documents of other bodies, 128 was adopted (subsequently amendments and additions were made to this order) and the main directions of the prosecutor's control in the field were indicated. order no. 128 of the general prosecutor of the republic of uzbekistan dated december 28, 2015 "on improving the effectiveness of control over compliance with laws in the execution of court documents and documents of other bodies and custody of prisoners" (subsequently amended and supplemented), the prosecutor in the field the main directions of control are indicated. this document was adopted in order to further increase the effectiveness of the prosecutor's control over compliance with laws in the execution of court documents and documents of other bodies. in this order, it is indicated that special attention should be paid to the following by the prosecutor's office in ensuring the control over the clear and uniform execution of the law of the republic of uzbekistan "on the execution of court documents and documents of other bodies" and other legal documents related to the field: that court documents and documents of other bodies are executed in accordance with the established procedure and general conditions; compliance with the law of grounds and measures of mandatory execution; the reasonableness of focusing the collection on the debtor's property or wages and equivalent payments; that measures have been taken to secure and realize the debtor's property; that the property of the debtor has been evaluated and realized in the prescribed manner, transparently and at the market value; compliance with the terms of execution of executive documents for non-property disputes; compliance with the strict order of distribution of collected sums of money and satisfaction of the demands of the collector. one of the interrelated aspects of the field of enforcement proceedings with the prosecutor's control is that, first of all, in the process of enforcement proceedings, a comprehensive control is established over the observance of the rights and interests of individuals and legal entities. the main task of the prosecutor's office is to supervise the observance of laws by state executives in the field of executive proceedings, the timely implementation of each executive action in accordance with the law, and the effective protection of the rights and freedoms of citizens in this regard. it is worth noting that it is impossible to determine the exact limits of prosecutor's supervision over compliance with laws in the execution of court documents and documents of other bodies. because if the state of compliance with the law is not studied regularly in any field, the conditions for violation of american journal of business management, economics and banking volume 15 august, 2023 p a g e | 122 www.americanjournal.org the law will arise. the directions of the prosecutor's control in the field of executive proceedings mentioned above are the directions that need to be paid the most important attention in practice at the moment. for this reason, we can study the directions of the prosecutor's supervision in the field of executive proceedings on a wider scale. in his address to the oliy majlis and the people of uzbekistan, the president of the republic of uzbekistan shavkat mirziyoyev stated that "reliable protection of human rights and freedoms should be defined as a constitutional obligation of the state, that a lot of work has been done to establish justice in the legal system in recent years, at the same time, there are still enough problems to ensure justice that there are cases of non-execution of court decisions. in fact, the problem of non-execution of the court decisions highlighted by the head of state in the address also shows that the prosecutor's control in this area is not sufficiently established. this, in turn: first, to introduce effective (effective) prosecutor control mechanisms in the field of execution of court documents and documents of other bodies; secondly, institutional and functional reform of the enforcement system; thirdly, to optimize the structure and powers of mandatory executive bodies; fourthly, to fundamentally revise the working methods of mandatory executive bodies; fifth, to strengthen the cooperation of mandatory executive bodies with interested ministries and agencies, local state authorities; sixth, it requires the need to reduce the workload of state executives by gradually introducing international standards to the activities of mandatory enforcement agencies and transferring certain functions (except court documents) to the private sector. in conclusion, it can be said that only by increasing the effectiveness of the execution of court documents and documents of other bodies, it is possible to further strengthen citizens' trust in justice, increase the authority and effectiveness of the judiciary. references: 1. "new development strategy of uzbekistan for 2022-2026", approved by the decree of the president of the republic of uzbekistan no.60 dated january 28, 2022. 2. decree of the president of the republic of uzbekistan no.3406 dated march 11, 2004 approved the "structure of the general prosecutor's office of the republic of uzbekistan" and established the "department of control over compliance with the laws in the execution of court decisions and detention of detainees" 3. order no. 128 of the general prosecutor of the republic of uzbekistan dated december 28, 2015 "on improving the effectiveness of control over compliance with laws in the execution of court documents and documents of other bodies and custody of prisoners" 4. qodiraliyev s. the essence of the principle of presumption of innocence //the peerian journal. – 2023. – т. 17. – с. 64-66. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 164 www.americanjournal.org measuring the impact of oil price fluctuations on the budget deficit malik bin bashir bin atiya al-wuraimi faculty of economic sciences and management / university of sfax malek.el-weriemmi@laposte.net wissam hussein alwan faculty of economic sciences and management / university of sfax wessamhussain21@gmail.com a b s t r a c k e y w o r d s the relationship between oil prices and the public budget deficit is one of the most important topics and issues that have received the attention of economic researchers and have been widely discussed in both developing and developing countries alike. this research aims to analyze the relationship between the general budget deficit and oil prices and to show the impact of these variables on the general budget deficit in iraq, and to measure that relationship by relying on the eviews12 standard program. the stability test was used by applying the expanded dickey-fuller test and the cointegration test to discover a trend. the long-term relationship between these variables. the results of the research showed the inverse relationship between the price of crude oil and the general budget deficit in the long and short terms. the researcher recommended the need for the state and the competent authorities to focus in preparing the budget on all economic variables related to its budget, by comparing the budget for several years. in order to know the factors and variables affecting them and pay attention to them in order to raise the level of their revenues, and effective investment of iraqi human capital, which is characterized by society’s vulnerabilities for those of working age, through providing job opportunities and developing workers’ productive skills in a way that achieves large returns for the general budget and represents a strong support link to pay it accelerates economic growth for all economic sectors, and its achieved returns are comparable to the returns of other physical and financial investments. oil prices, budget deficit. introduction the iraqi economy is considered one of the economies of developing countries that rely heavily on oil revenues. the iraqi economy entered a new transformation phase after 2003 and suffered from a cessation of all economic activities in the country, as well as the collapse of the most important american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 165 www.americanjournal.org economic institutions and sectors (agricultural, industrial, and services). this imbalance affects all macroeconomic variables. since economic variables represent the main indicators of financial and social events, they affect the country’s economy, and given their importance, the state takes them into consideration in order to know its economic reality. from knowing these variables emerges a statement of the economic activities that are important in the process of economic growth and development in order to focus on them in taking a package of basic decisions to support the general budget, as there are many economic variables that affect the general budget deficit, including the gross domestic product, which witnessed a slowdown in economic growth rates for non-oil economic sectors, and this rentier dependence is reflected in the rest of the economic variables, such as the unstable exchange rate and the rise inflation rates are a result of the decline in these economic sectors in providing goods and services in exchange for an increase in the volume of demand for them, which led to an acceleration in the pace of general prices in iraq, in addition to the weakness of capital accumulation resulting from a decrease in the level of income with an increase in the level of consumption, causing a savings gap that results in an imbalance in the level of investment because the funds required for investment are greater than the ability of the national economy to provide them and are represented by their lack of contribution to supporting the gross domestic product to reduce the general budget deficit. after 2003, the fiscal deficit in the general budget tended to increase as a result of the expansionary spending policy pursued by the government, and the financing of this spending depended to a large extent on oil revenues, which posed a threat to the overall iraqi economy, due to the fluctuation of oil prices on the one hand, and the neglect of the role of tax revenues and other revenues. contributing to financing public expenditures correctly without resorting to borrowing from other parties . first: the importance of the research: the importance of the research is highlighted in trying to clarify the impact of oil price fluctuations on the general budget deficit in iraq, especially since the iraqi economy still suffers from being a one-sided economy (the raw resource ) whose prices depend on the global market in addition to the high government spending. especially military and service expenses . second: the research problem: the rentier nature of the iraqi economy has made its general budget greatly affected by the price of crude oil, the impact of which is reflected directly or indirectly in the general budget deficit in iraq during the study period . third: research objectives: the overall research objectives can be highlighted in the following points : •learn about the concept of the general budget deficit and oil prices . •analysis of the relationship between the general budget deficit and some oil prices. •measuring the relationship between the general budget deficit and oil prices based on modern standard programs ( eviews12 ( . fourth: research hypothesis: the research assumes the existence of a long-term and short-term influence relationship between oil prices and the general budget deficit in iraq for the period in question fifth: study variables: 1 independent variable:crude oil price . 2dependent variable:general budget deficit seventh: research methodology in the theoretical aspect, we relied on the descriptive approach to study economic phenomena or problems and arrive at scientific explanations by addressing the theoretical literature. as for the applied american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 166 www.americanjournal.org aspect, the standard (eviews12) program was used, which is based on economic measurement methods to analyze the relationship between the research variables, and then interpret them . quantitative results of evaluating the applied aspect in iraq . first topic the theoretical framework of the concept of oil prices and the general budget deficit and the relationship between them. the first requirement: the concept and types of budget deficit first: the concept of budget deficit the general budget deficit is a common economic phenomenon that generally occurs at the level of different countries when public spending exceeds existing revenues and is the result of poor planning or government estimates” (saadi, 2019: 12). it is also known as “the surplus of final expenditures over final revenues.” (muhammad, 2021: 8). he also knew that “the budget deficit is the failure of the state’s estimated public revenues to pay the estimated expenses.” viadislav , 2005-8) ) . the deficit is defined as “a negative budget balance in which the state’s public expenditures are higher than its revenues” (muhammad, 2018: 29). cpesti defined it as “the difference between total expenditures and government revenues, excluding debt” ( cpesti , 1992, 40). through our review of these definitions, the concept of the deficit of the state’s general budget becomes clearly clear to us, and we can say that the budget deficit is the inability of the revenue side to cover the increasing expenditures of the state as a result of the expansion of the economic activities, whether consumption or investment of the state . second: types of state budget deficit there are multiple types of state budget deficit, the most important of which we will mention as follows: 1current deficit . this deficit expresses the government sector's demand for resources that must be financed through borrowing. this deficit is measured by taking the total difference between the total types of expenditures and public revenues for all government agencies, minus the government expenditures allocated to pay off accumulated debts from previous years. in other words, it is the difference between... current public spending and current public revenues. this measure aims to know the government sector’s requirements for resources that must be financed by borrowing (dardouri, 2013: 115). 2 total disability. it is the traditional or common definition of the fiscal deficit, which measures the negative difference between the amounts of government spending, including interest payments and this measure does not include government debt amortization payments, and government revenues that include the total of tax and non-tax revenues and does not include borrowing revenues. the comprehensive deficit seeks to expand this concept includes all other government entities, such as local bodies, decentralized bodies, and national public programs, where the deficit percentage becomes equal to the difference between the total government revenues and the public sector and the total government and public sector expenditures. therefore, this deficit must be covered with new borrowing. moreover, this deficit presents a picture of it is sufficient for all state activities and is not limited to part of the central government sectors, but rather a comprehensive overview of all government sectors. therefore, be prepared not to exclude government financial institutions when measuring the budget deficit, such as american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 167 www.americanjournal.org the losses that the central bank is exposed to when performing its functions, as the financial deficit of these institutions has effects on the economy. in order to match the effects of the financial deficit in the state’s administrative agencies, the importance of the financial requirements of these major institutions must be taken into account when measuring the overall deficit in the general budget (abdul hamid, 2003: 77). 3 basic disability. this type of deficit depends on the current budget policies and is not based on the interest due on the debt, because it is the result of a deficit for previous years and not the result of current financial activity provided by the state. this measure aims to determine the degree of improvement or deterioration that occurred in the government debt as a result of its adoption of current budget policies. the government debt resulting from the current budget policy also provides an assessment of the extent to which the deficit can be tolerated, and this type of deficit is known as the interest-free deficit because it is excluded from all interest appropriations, but this concept excludes an important element of the deficit in most developing countries, which is the interest due on the debts. foreign affairs, this has become a heavy burden on these countries (mohamed, 2021: 10. 4operating deficit. the operating deficit is the deficit that operates in inflationary conditions, which represents the borrowing needs of the government and the public sector, minus the portion of interest paid to correct inflation by the currency correction factor, and including the interest rate paid that carries a portion of the money to creditors to compensate them for their losses resulting from the rise in prices, as most countries suffer from high rates of inflation, so creditors insist on linking the value and principal of their debts to price changes, because inflation reduces the real value of current debts, and the interest paid to cover losses from the decline in the real value of debts is often sufficient, and in this case the amount of the deficit increases if it is using the government sector's measure of net demand for resources, some financiers called for excluding these payments due to their importance in correcting the effects of rising prices in addition to the real interest of the loan requested by the real sector (abduljabbar, 2018: 20) . 5structural deficit. it is a measure that explains the impact of emergency or temporary obstacles to which the general budget is exposed, such as price changes, local income deviations, and long-term interest rates. sales of government assets are excluded from this measure because they represent an extraordinary resource, and the structural school has shown us in its interpretation of the financial deficit, it is the deficit. resulting from an increase in public spending at a rate that exceeds the increase in the financial wealth of the national economy, this matter is due to the imbalance of the national economy itself. there are those who call this deficit an emergency deficit in order to indicate the structural deficit, given that this is not a structural measure, but it attempts to address the impact of temporary factors that affect the state’s general budget. ( victor argy,1970;72 ( . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 168 www.americanjournal.org third: the reasons for the state’s general budget deficit there are many reasons that contributed to the state's general budget deficit, which may be political, social, or economic, but the main reason is the economic factor, that is, the growth of public spending at a rate exceeding public revenues is the largest and most important reason for the budget deficit. 1increasing state public spending. after the state became involved in all social, economic, and political issues, the rate of public spending increased, and it became one of the most prominent means the state resorts to to achieve its goals. the increase in public expenditures can be attributed to two reasons : areasons for increasing public expenditures the actual increase provided by public expenditures is to obtain public benefits. we will present the most important reasons for the actual increase in public expenditures as follows (khalaf, 2008: 97) . 1economic reasons. it is one of the most important reasons that show the real and continuous increase in government spending, that is, the increase in the rate of spending leads to an increase in income, which in turn leads to an increase in demand for consumer goods and services in the event that the income elasticity of demand for goods and services is large, so any increase in the level of income will directly lead to an increase in the amount of demand for public goods and services, and this leads to an increase in public spending to satisfy this demand . the increase in public expenditures in developed countries is due to the need to influence economic activities through state intervention and directives to ensure regular growth in the economy and the manner in which government spending is increased to avoid the recession that occurs in these countries. the more progress there is in these countries, the greater the possibility of expansion becomes available. in their public expenditures, their ability to provide public revenues has increased in a way that ensures an increase in the level of production and incomes. as for the increase in spending in developing countries, it is due to economic reasons that can be explained by the intense need to develop their economies resulting from weak economic activity and the lack of projects supporting this activity in terms of diversity, level of production, and all. these activities require government intervention in order to regulate the level of spending and the mechanism for collecting revenue (ayeb, 2010: 19 ( 2administrative reasons. these reasons are represented by the expansion of the state bureaucratic apparatus, as well as the expansion in the volume of expenditures provided by the state to non-productive sectors, and the increase in the number of employees in state agencies in most developing countries in a way that exceeds the size of the basic work structures. most of these countries have committed to hiring new graduates in order to eliminate unemployment, but without returning to the actual need for them, which caused stagnation in the number of employees and exhausted the general budget due to the increasing volume of public spending of the state (zaki, 1992: 44). 3financial reasons the development that occurred in public spending from the traditional concept to the contemporary concept is one of the most important reasons that worked to increase spending. the importance of this development appeared in order to direct economic activities to achieve high levels of income and employment, especially in times of economic crises, and to provide facilities for issuing public loans, which made it one of the most important sources. financing public expenditures, that is, these loans gave the state an opportunity to fill the deficit in its budget due to insufficient taxes to carry it out. the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 169 www.americanjournal.org expansion of this demand has become an obstacle to economic development, because it increases the financial burdens of the state and also exhausts a large part of it . the second requirement : the theoretical framework for crude oil prices : first: the concept of the price of crude oil it is expressed in terms of monetary value at a specific time and place, and is usually expressed in us units of measurement (dollars). the relationship between the price of oil and the monetary value of a barrel of oil is not fixed or equal, but rather is affected by different factors and the specificity that the commodity (oil) possesses, and in addition to that, they are affected by the interaction between global forces of supply and demand (nima, 2015: 21(. second: factors affecting oil prices the international oil market depends mainly on the demand and supply sides and the balance between them in addition to the global stock of crude oil, because the major countries do not possess new oil reserves that can be exploited in the future (al-janabi, 2015: 8) and there are other factors that control the mechanism of oil prices in global markets in the long term. and the immediate ones, including climatic, security, and financial factors that affect the global supply and demand for oil and thus prices (helou, 2018: 11). there are many factors affecting the determination of global oil prices, varying in the strength of their influence, which can be explained as follows: 1 economic factors : •change in the value of the currency: the us dollar is considered the base currency for oil prices. this relationship is due to historical, political and economic factors. any change that occurs in the exchange rate of the us dollar will directly affect the value and prices of global oil as well as oil revenues in the international market, and this change leads to major economic damage. it falls largely on oil-producing and consuming countries, and the only beneficiary of the exchange rate change is the united states of america . •speculation: these speculations arise in the oil markets between the two parties, producers and consumers, and speculators work to change prices downward or upward in order to reap profits, which may make supply greater than demand, leading to chaos in international oil markets . •the cost of oil production: it is the main factor in influencing oil prices in the global market. if we compare the production cost ratios between canada and america with the production cost ratios in the middle east, if we find that the production and extraction cost ratios in america are more than the cost ratios in the middle east . this leads to higher costs of administration, transportation, and taxes. (alkhafaji, 2017: 27(. •the nature of oil markets: there are many opinions about the nature of oil markets in terms of the direction of prices and settlement at the marginal cost of oil production in the long term in a perfectly competitive market. the limited number of producers and the lack of sufficient information about the stages of the oil industry, and the restrictions imposed on entry or exit from the industry confirms that the conditions of perfect competition are not applied, in addition to the fact that oil pricing is subject to purely monopolistic elements. opec enjoys a high monopoly position that helps it determine prices and the quantity of production with complete freedom in order to achieve for itself and its members the highest possible return from oil revenues . •the global supply of oil: depends on the proven reserves of the producing countries and the extent of their development, in addition to the discovery of many new oil reserves in these countries, and in addition to the available production and export capacity and its development, the increase of these american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 170 www.americanjournal.org explorations above the specified limit or their disruption will directly affect the quantity supplied of oil. oil and thus the level of oil prices. on the other hand, the rise in oil prices generates an economic incentive to exploit oil fields located outside the regions of oil-producing countries at a relatively expensive cost, as happened in the late seventies and early eighties of the last century. this forced opec to reduce the volume of production to support prices the oil peak that oil experts expected to reach also played a prominent role in the rise in prices in the oil market. (al-jubouri, 2019: 10(. •global demand for oil: depends on global economic growth and population growth, so the expansion of the global oil industry that depends on oil energy is considered the main factor in the rise or fall of prices in the global oil market, as happened in the crisis in mid-2008, which led to a rise in prices and had a significant impact. negative impact on the global economy, which led to a decline in global demand for oil (faraj, 2015: 43(. 2natural factors: natural disasters related to climatic factors have a clear impact on oil prices, such as hurricanes that occur in the united states, katrina, mexico, and other countries, as they create negative effects on the oil facility located in these countries, which affects the oil supply and this is reflected in the oil supply . high prices and low production (sumaya, 2010: 85(. 3political factors: this factor is considered to have the greatest impact on the movement of prices in international oil markets. internal disturbances and conflicts in the extraction and refining areas affect the movement of these products and their delivery to consumers, which negatively affects prices, in addition to the external political escalation between countries, such as economic sanctions imposed on some. countries, as well as the economic crisis in mid-2008, which had a clear impact on global oil prices, and from this perspective, instability became one of the most important features affecting global oil markets (al-sudairi, 2014: 51(. 4other factors: are the policies adopted by the governments of oil-producing or consuming countries, as they play an important role in influencing oil prices in international markets, in addition to the policies followed by major companies that still control the bulk of oil trade outside the oil-producing countries (sweet , 2018: 12(. the third requirement: the relationship between crude oil prices and the general budget deficit oil is of strategic importance to the economy in general in most countries, especially the oil-producing countries, as it contributes to the formation of the gross domestic product, national income, the state’s total public exports, the general budget and all economic development programs. it also contributes in the oil-producing countries to building their cash reserves because the returns oil is derived from foreign currencies and is considered a primary source of financing the general budget. fluctuations in crude oil prices directly affect both sides of the general budget, public revenues and public expenditures. countries that rely heavily on crude oil prices are more exposed to economic fluctuations and general budget deficits (raima, 2015: 97(. •public revenues: they are considered one of the most important economic indicators that show the economic situation of the country and the state of the general budget, surplus or deficit. they are closely related to the size of oil revenues and are characterized by large fluctuations due to fluctuations in crude oil prices resulting from global financial crises. the oil-producing countries are considered the primary beneficiaries of a major oil boom. large foreign exchange income was generated, which contributed to the improvement of economic activities to support the general budget, and vice versa, if global oil prices were exposed to a decline, it would negatively affect economic activities and lead to a general budget deficit (seham, 2018: 119(. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 171 www.americanjournal.org •public expenditures: they have many economic effects and characteristics, as they affect production and consumption, and in addition to the distribution of income and savings, they depend primarily on oil revenues, and the continuous decline in crude oil prices led to a decline in oil revenues and financial surpluses, which led to a decrease in public spending. in these countries. that is, public expenditures decrease as a result of a decline in the rate of public revenues, which depend largely on global oil prices and the factors affecting them. the decline in the rate of public spending led to a deficit in most of the public budgets of oil-producing countries, because the decline in the rate of oil revenues affected the state’s investment and development expenditures, while current expenditures were not affected by this decrease, which is the main reason for the budget deficit ( nima, 2015: 23 ( . •gross domestic product: the oil sector constitutes a large part in the formation of the gross domestic product of the oil-producing countries, as it affects most of the productive economic sectors and contributes to the formation of the gross domestic product of these countries. any change in the prices of this sector affects the output and leads to a deficit in the state’s general budget (allawi , 2019: 8(. the second topic analysis of the reality of the budget deficit and oil prices in iraq macroeconomics is one of the branches of economics that specializes in studying the economic phenomena represented by the continuous rise in the general price level, that is, inflation, the economic growth rate, and the gross domestic product, in addition to other variables. macroeconomic policies work to create an appropriate economic environment to achieve general economic stability and growth. which reduces unemployment rates by creating sufficient job opportunities, raises the level of the country’s wealth and improves the standard of living for individuals. overall economic stability is a necessary condition for achieving development and growth, as advanced macroeconomic policies must be followed within a coordination framework, so that both policies financial, monetary and exchange rate policies for the local currency, and management of the capital account represented by the balance of payments are harmonious with each other, to address imbalances in the structure . table no. (1 ( the impact of global oil prices on the general budget deficit in iraq for the period (2004-2020) billion dinars the years global oil prices (1 )dollar general budget deficit )6( 2004 36.05 865 2005 50.64 9671 2006 61.08 10248 2007 69.08 15568 2008 94.45 20848 2009 61.06 2642 2010 77.46 613 2011 107.46 21241 2012 109.45 14326 2013 105.85 5360 2014 96.29 8086 2015 49.47 3927 2016 36.09 12658 2017 49.31 1845 2018 69.78 25696 2019 64.04 4156 2020 41.47 12882 source: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 172 www.americanjournal.org central bank of iraq department of statistics and research annual statistical bulletin for various years . ministry of planning, central bureau of statistics national accounts, various years . the development of the iraqi economy has become dependent on the oil revenues that generate imports for the country, which control 95% of the total volume of exports. these revenues are linked to oil prices in the global market, and the improvement of the monetary value of the dollar, which is considered the currency of payment for these revenues, so the heavy reliance on these revenues. it had negative effects that were evident in a deep imbalance between monetary and economic indicators and a distortion in the trade balance, as its effect is not limited to a decline in growth rates only, but also affects the currency of this country, which has made the country’s economy more vulnerable to the fluctuations that occur in global oil prices. we note from the data available to us in table (1) that in the years between 2004 and 2008, the demand for oil in the world increased significantly after the high growth rates in india and china, but opec was unable to supply this huge amount of demand, which led to a sequential rise. and the global oil prices are regular, but speculation intensified in 2008 on oil prices, which led to them reaching (94.45). after this year, speculation diminished and oil demand decreased at the end of 2008, which is considered the beginning of the global financial crisis that occurred as a result of the fall of the major american banks and the collapse of companies. mortgage, and this decline continued until 2009, i.e. by (61.06). after this year, prices began to gradually recover until they reached (77.46) in 2010 after the decision was taken by opec at the historic oran meeting in algeria, which included making a collective reduction in the amount of oil . as a result of this decision, 4.2 million barrels were withdrawn from the markets. oil prices rose again in 2011, resulting from the worsening political turmoil that the arab countries witnessed in the wake of the arab spring, including iraq, syria, and libya, and continued the upward trend until they reached their highest rate in 2011. 2012 by (109.45). we see behind this increase the ban imposed by the united states and the european union on iranian oil exports, which caused about one million barrels per day of its oil to be removed from the market. after this year, it began to gradually decline until it reached (49.47) in 2015, he explained. the international monetary fund caused this decline since 2014 due to two shocks to the iraqi economy. the first shock occurred on june 10, 2014, after terrorist groups entered the city of mosul and many other areas. the second shock is considered external: the collapse of oil prices, which began to show the repercussions of this crisis in the year 2016. -2017. there was joint management of this crisis by the central bank, the ministry of public finance of the state, and the international monetary fund. oil prices recovered in 2018 and 2019 and relapsed again in 2020 until they reached (41.47) due to the global health crisis (corona pandemic). which caused the disruption of many economic resources around the world. since iraq depends entirely on crude oil exports to obtain revenues from the foreign currency (the dollar), the instability in oil prices will affect the iraqi economy. this reason is attributed to the large correlation between oil revenues and foreign reserves in iraq. the decline in these revenues it directly affects foreign reserves . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 173 www.americanjournal.org the first topic the first section: measuring the impact of oil price fluctuations on the budget deficit the first requirement : description of the standard model and the nature of the relationship between its variables. this study used a set of variables in accordance with the reality of the iraqi economy and the yearafter-year policies implemented after 2003, and to demonstrate the impact of oil price fluctuations on the budget deficit , a model that expresses the pattern of this relationship must be described and formulated, which can be considered one of the most difficult stages of quantitative research, through an accurate description of the variables included in the model , in addition to identifying the main variables, using econometric methods ( econometrics) , which is the main tool for giving economic theory its applied aspect, which helps to test statistical and measurement hypotheses in a way that brings them closer to reality so that they are more logical , through testing the stability of the extended dickeyfuller and phillips-perron time series ( phillips-peron) and an autoregressive distributed lag model was used . (ardl ) in estimating the model parameters, we relied on variable data from different issues of the annual statistical bulletin (the central bureau of statistics , the public debt department in the ministry of finance, the budget department in the ministry of finance, with 68 views ranging from 2004q1 2020q4 using the statistical program 1 2 eviews . table no. ( 2 ( standard model variables source: table prepared by the researcher based on the model description. the study variables can be explained as follows: dependent variable: public budget deficit ( y ): it is defined as: “it is an economic phenomenon that has received great attention at the level of countries around the world. it occurs as a result of the discrepancy in the growth rate between public expenditures and public revenues, that is, the volume of the state’s public spending exceeds the public revenues obtained definitively from the amount of exports.” belhaoui, 2021: 267). independent variables : the price of crude oil ( x1 ) is defined as the monetary value of a barrel of crude oil, which is expressed in us dollars. it is an economic indicator that has a strong impact on most economic sectors, especially in oil-producing countries whose economies depend on crude oil, such as iraq and other countries (hussein, 2018: 90(. second requirement : unit root test . augmented dickey fuller test we can infer through the ( adf ) test if the included variables do not have the characteristic of stability and suffer from a unit root, and then here we accept the null hypothesis ( h 0 = 0 ) and reject the alternative hypothesis. however, if the variables do not suffer from a unit root and have the characteristic stability. here we will accept the alternative hypothesis ( h 1 = 1 ) and reject the null hypothesis. variable symbol variable name in arabic variable type y budget deficit continued x1 crude oil price independent american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 174 www.americanjournal.org table no. (3 ( extended dickey-fuller ( adf ) test for study variables variables the level the first difference fad sig. the condition adf sig. the condition y 2.6790 _ 0.022 intercept -2.179 0.0493 none x1 2.2585 _ 0.003 intercept -8.939 0.00 21 intercept source: table prepared by the researcher using (12 eviews program. it is clear from table (3) the results of the extended dickey-fuller ( adf ) test that the study variables stabilized at level (level ) and the first difference is (1) i as in table (2). third requirement : descriptive statistics, variables and the correlation between them . first: descriptive statistics for the study variables: we note in table ( 4 ) the descriptive statistics for the study variables ( oil prices ) as an independent variable and the indicator (budget deficit) as the dependent variable used in this study during the period 2004-2020. the data was divided into quarterly and converted to logarithmic form, so the number of observations is 68. for each of the variables mentioned . table no. ( 4) features statistics descriptive for study variables average highest value lowest value standard deviation views y 4389986 25696645 -1.3 887 07 11848201 68 x1 68.70282 111.1546 35.85032 23.21997 68 source: table prepared by the researcher using (10 eviews ) program . the table shows the most important statistical indicators for the variables in the study sample, where the general budget deficit ( y ) recorded the highest value of (y ) . ( 25696645) and the lowest value was (-1.388707) and its average was (4389986) and a standard deviation , it reached (11848201). as for crude oil prices ( x1 ) , the highest value was recorded at (11848201 ). ( 111.1546, the lowest value was (1181.650), the average value was (68.70282 ) , and the standard deviation was (23.21997 ( second: the correlation matrix between the variables. table no. ( 5 ( correlation matrix between model variables covariance analysis: ordinary correlation probability y x1 y 1.000000 ---- x1 -0.383880 1.000000 0.0016 ---- american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 175 www.americanjournal.org source: table prepared by the researcher using (12 eviews ) program. we note from table ( 5 ) that the macroeconomic indicators ( x1 ) are negatively and strongly related to the general budget deficit indicator ( y ), where the value of the correlation coefficient between the dependent variable and the independent variables reached (-0.383880) (in order, with a probability level of less than 5% . the third requirement: measuring the impact of some macroeconomic variables. model integrity test : testing the soundness of the model is considered one of the important tests that demonstrate the soundness of the model used. from table ( 6 ), it is clear that the model is free of the problem of spurious regression because the value of the durbin -watson stat is greater than the value of the coefficient of determination ( r-squared ) . table no. (6 ( integrity of the ardl model dependent variable: logy method: ardl r-squared 0.994008 mean dependent var 16.44262 adjusted r-squared 0.989515 sd dependent var 0.530262 f-statistic 221.1981 durbin-watson stat 2.187195 prob(f-statistic) 0.000000 *note: p-values and any subsequent tests do not account for the model selection. source: prepared by the researcher using the program (1 2 eviews) the table above shows that the probability of an error was (0.000000) and indicates that all results will be real and not fake. it is also clear from the results that 98% of the changes occurring in the budget deficit were the result of changes occurring in macroeconomic variables, by relying on the value of the coefficient of determination, which it reached 98%, and the durbin-watson value reaching 2.187195 indicates that there is no problem of serial autocorrelation, and this will be confirmed by the autocorrelation test in the same study. bound test : the co-integration test initially shows us the existence of the long-term relationship between the dependent variable and the independent variable. the presence of co-integration between the variables is considered a necessary condition for the long-term relationship, but it is not a sufficient condition, as the coefficient of determination with its conditions is considered a sufficient condition, and in order for there to be a long-term relationship, there must be the necessary condition and the sufficient condition are met, and table ( 7 ) shows the cointegration test as follows: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 176 www.americanjournal.org table no. (7 ( bounds test results bound test f-bounds test null hypothesis: no levels relationship test statistic value signif. i(0) i(1) asymptotic: n=1000 f-statistic 52.81121 10% 1.99 2.94 k 6 5% 2.27 3.28 2.5% 2.55 3.61 1% 2.88 3.99 source: table prepared by the researcher using (12 eviews ) program . it is clear from table ( 7 ) the results of the bound test for co-integration between the study variables if the calculated f-statistic value reaches (52.81121), which is greater than the maximum tabular value at a significance level (5%), which means rejecting the null hypothesis and accepting the hypothesis. alternatively, this means the existence of a cointegration relationship between some variables, meaning that the first condition is for the long-term relationship. therefore, the second condition, represented by the error correction factor, must be verified according to its main conditions. short-run relationship and error correction factor : the short-term relationship between the dependent variable and the independent variable is clarified, that is, measuring the effect of the independent variables on the dependent variable, and this is what table no. ( 8 ) shows . table no. (8) the relationship is short-term according to ardl ardl long run form and bounds test dependent variable: d(logy) variable coefficient std. error t-statistic prob. c -27.17297 17.92177 -1.516199 0.1490 logy(-1)* -0.500505 0.109014 4.591184 0.0003 logx1 -3.366621 1.631106 2.064011 0.0055 source: table prepared by the researcher using the program (1 2 eviews (. the results of the short-term relationship showed the following : the results of the table above showed that there is an inverse relationship between the price of crude oil ( x1 ) and the general budget deficit ( y ), that is, when the price of crude oil ( x1 ) increases by one unit, this leads to a decrease in the general budget deficit ( y ) by ( 3.3 ) units, with all other factors remaining. this is consistent with the logic of economic theory, due to the budget being very dependent on oil. the results showed the value of the error correction factor ecm = ( -0.500505 ) it is negative and probable at a lower probability level (0.50). this result fulfills the necessary and sufficient condition for the long-term relationship between the variables, and that the short-term imbalance in the previous year ( t) is corrected during (2%) of the current year ( t-1 ) . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 177 www.americanjournal.org long term relationship . table no. ( 9) ) long-term relationship according to ardl levelsequation case 2: restricted constant and no trend variable coefficient std. error t-statistic prob. logx1 -6.726455 3.505704 -1.918717 0.0070 source: table prepared by the researcher using (12 eviews ) program. the results of the short-term relationship showed the following : the results of the table above showed that there is an inverse relationship between the price of crude oil (x1) and the general budget deficit (y), that is, when the price of crude oil (x1) increases by one unit, it leads to a decrease in the general budget deficit (y) by (6.7) units, with all other factors remaining. constant, and this is consistent with the logic of economic theory, due to the budget being very heavily dependent on oil. we also note that in the long period, the effect is greater . model quality tests: there are many tests that determine the quality of the model, a group of which will be used as follows: test for normal distribution of residuals: to demonstrate the fact that the estimated model is normally distributed or not, the jarque-bera test was used. figure ( 1 ) shows us the results of the test for the normal distribution problem, as we notice that the probability reached (3711920 prob= ) greater than (5%), which supports accepting the hypothesis that states that the residuals are normally distributed. 0 2 4 6 8 10 12 14 -200000 -100000 0 100000 series: residuals sample 2006q1 2020q1 observations 57 mean 3.75e-07 median -163.7749 maximum 148087.1 minimum -185999.3 std. dev. 61588.83 skewness -0.132443 kurtosis 3.874295 jarque-bera 1.982072 probabil ity 0.371192 figure ( 1 ( results of testing the normal distribution problem source: figure prepared by the researcher based on the outputs of the eviews.12 program . autocorrelation test : to ensure the extent to which the estimated model is free from the problem of autocorrelation of the residuals, a serial correlation lm test lm , the results of which are listed in table ( 10 ), which confirmed that the model is free of the autocorrelation problem, if the chisquare probability exceeds ( 0.05 ), reaching (0.98765), as follows: american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 178 www.americanjournal.org table ( 10 ) serial correlation lm test lm for autocorrelation breusch-godfrey serial correlation lm test: null hypothesis: no serial correlation at up to 2 lags f-statistic 31.88215 prob. f(2, 25 ) 0.98765 _ obs *r-squared 40.94625 prob. chi-square(2) 0.89867 _ source: table: prepared by the researcher based on the outputs of the eviews.12 program . the problem of homogeneity of variance stability: to verify the extent to which the estimated model is free from the problem of variance of the error term, an arch test was used , the results of which are listed in table no. ( 11 ), which confirmed that the model is free of the problem of variance of the random error term, as the probability exceeded chi . square (0.05), reaching (0.5146), as shown below : table no. ( 11) the arch error term heteroskedasticity test: arch f-statistic 4.587628 prob. f(2,52) 0.5 146 _ obs *r-squared 8.249072 prob. chi-square(2) 0.5 162 _ table: prepared by the researcher based on the outputs of the eviews program.12 .conclusions : 1the results of the unit root tests (extended dickey-fuller ( adf) showed that some of the study variables stabilized at level ) and others stabilized at the first difference (1 ( . 2it showed that macroeconomic indicators ( x1 , it is negatively and strongly associated with the general budget deficit index ( y ), as the value of the correlation coefficient between the dependent variable and the independent variable reached (-0.383880) with a probability level of less than 5% 3bound test for cointegration between the variables of the study revealed the existence of a cointegration relationship between some variables. 4the results of the short-term relationship showed that there is an inverse relationship between the price of crude oil ( x1 ) and the general budget deficit ( y ), that is, when the price of crude oil ( x1 ) increases by one unit, it leads to a decrease in the general budget deficit ( y ) by ( 3.3 ) units, with all factors remaining. the other is fixed, and this is consistent with the logic of economic theory, because the budget depends very heavily on oil. 5as for the long-term relationship, the results showed that there is an inverse relationship between the price of crude oil (x1) and the general budget deficit (y), that is, when the price of crude oil (x1) increases by one unit, this leads to a decrease in the general budget deficit (y) by (6.7) units. with other factors remaining constant, this is consistent with the logic of economic theory, due to the budget being very heavily dependent on oil. we also note that in the long period, the effect is greater . recommendations 1the need for the state and the competent authorities to focus in preparing the budget on all economic variables related to its budget, by comparing the budget for several years in order to know the factors and variables affecting it and pay attention to them in order to raise the level of its revenues . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 179 www.americanjournal.org 2establish multiple financing sources for public revenues other than the oil sector, work to expand the state’s sovereign resources, and build a strong foundation capable of raising the efficiency of tax systems, taking into account the scope of tax collection and achieving the principle of social justice when imposing them. 3exploiting the economic surplus achieved in certain years by investing in sovereign wealth funds and other productive investments because of their impact in providing an additional source of income to support the general budget 4-determining the value of the exchange rate in foreign currencies by following an economic policy with effective goals in achieving economic stability, addressing the deficit in the balance of payments, and supporting the iraqi dinar to stabilize at its real price, which reflects its actual value . 5it is necessary to link the amount of government spending in the general budget to the growth rate of the gross domestic product, because the amount of spending in excess of the budget capacity directly affects the size of the money supply by issuing additional currency to finance those expenditures, which affects the money supply on the budget deficit . references 1abdel hamid abdel muttalib, economic policies at the level of the national economy, arab nile group, cairo, 2003: p. 77. 2khalaf, falih hassan, public finance, irbid jordan, modern book world, first edition, 2008. 3shame, child slave al-hamid, archaeology economic the college for politics spending government study applied , standard for models development economic, beirut lebanon, library hussein trendy , edition first, 201 , p. 19. 4zaki, symbolic, conflict intellectual and social around inability budget the public in the world third, cairo. sina for publishing, edition first, 1992 , p. 44 5dardouri, lahcen, budget policy in treating the state’s general budget deficit, phd thesis, mohamed kheidar university biskra, faculty of economic and commercial sciences, department of economics: 2013, p. 115 . 6rima, bitam, oil prices and their repercussions on the state’s general budget, a case study of algeria (2000-2014), master’s thesis, mohamed khudair university, faculty of economic and commercial sciences, 2015, p. 97. 7siham, shabab, the impact of oil price fluctuations on the state’s general budget, a standard study of the general budget in algeria for the period (1980-2016), doctoral thesis, abi bakr belkaid university , faculty of economics and management sciences, 2018, p. 119 . 8saadi, rayan, “the impact of non-traditional financing on the algerian economy a prospective study”, master’s thesis, larbi ben m’hidi university, faculty of economic, social sciences and management, algeria, 2019, p. 12 . 9helou, hamoud saad muhaimed, analysis of the impact of crude oil price fluctuations on foreign trade of oapec countries for the period (2000-2016) iraq saudi arabia united arab emirates, master’s thesis, tikrit university, college of administration and economics, 2018: p. 11. 10al-janabi, alaa ahmed muhammad, the repercussions of the collapse of oil prices on the public financial budget in iraq (an analytical study of the 2015 budget), higher diploma thesis in economic sciences, tikrit university, 2015: p. 8 . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 180 www.americanjournal.org 11al-khafaji, saif ali abdul razzaq sharif, measuring the impact of the oil revenue shock on monetary policy variables in iraq for the period (1999-2015), master’s thesis, university of babylon, college of administration and economics, 2017, p. 27. 12jubouri, izz al-din khalil ibrahim shlash, analysis relationship between revenues oil and the budget the public federal iraqi and the alternatives available study for the period (2004-2016). analytical, message master's, university tikrit, college administration economy, 2019 , p. 10. 13somaya, mori, the effects of exchange rate fluctuations on oil revenues, a case study of algeria, master’s thesis, university of tlemcen, algeria, 2010: p. 85. 14al-sudairi, muhammad bin sultan bin abdul rahman, a strategic vision to reduce the impact of oil price fluctuations on saudi economic security, master’s thesis in strategic sciences , naif arab university for science, riyadh, saudi arabia, 2014: p. 51 .al-jubouri, izz al-din khalil ibrahim shalash, analysis of the relationship between oil revenues and the iraqi federal general budget and the available alternatives for the period (2004-2016), an analytical study, master’s thesis, tikrit university, college of administration and economics, 2019, p. 10 . 15mohammed, manal jaber morsi, relationship mutuality between inability budget the public egyptian and rate inflation, university sohag, college commerce, 2021: p. 10. 16slave jabbar, saddam abdullah yusef, effect variables the college on inability budget the public in sudan in period from 2007-2016 , university nilein, college studies supreme council, 2018: p. 20. 17allawi, saimaa mohsen, the decline in global oil prices and its impact on the preparation of the general budget for iraq, dinar magazine, no. 17, iraqi university, college of administration and economics, 2019, p. 8. 18nima, nagham hussein, managing oil revenues and their role in maximizing iraq’s wealth, al-nahrain university, faculty of business economics, al-ghari journal of economic and administrative sciences, volume 12, issue 35 , 2015: p. 21. 19relief , resident a region , ( factors influential on prices oil globalism and its impact on economies council cooperation for countries gulf arabi for the period 2003 2014) , magazine economy gulf , issue (26) , center studies basra and the gulf arabi , university basra, 2015: p. 43. 20victor argy "structural inflation in developing countries , oxford economics , staff papers , london , 1980. 21vladislav ''dolgopolov, "budget deficit accumulation an empirical test of the two theories" ph d.disseration,clark university, 2005 , p.8 american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 1 www.americanjournal.org the impact of the bank deposit insurance system in capital adequacy and profitability indicators for the iraqi banking sector and comparison with the jordanian banking sector mustafa hussein hassan (1) imam al-kadhum college (ikc) mustafahussein@alkadhum-col.edu.iq. mustafaajabar719@gmail.com sadiq hussein abdul hassan(2) college of administration and economics / al-mustansiriya university sadiqhussein@uomustansiriyah.edu.iq a b s t r a c t k e y w o r d s the aims of research to determine the extent impact of the banking deposit insurance system that measured by deposit guarantee fees percentage in the iraqi banking sector on two indicators, capital adequacy and bank profitability, and compare the same effect with the jordanian banking sector. accordingly, the research hypothesis was tested after selecting 10 private commercial banks, (5) of them are iraqi listed in the iraqi deposit insurance institution and (5 others) from the jordanian banking sector and listed in the jordanian deposit insurance institution for the period (20182021), and based on the eviews13 statistical program, the researcher reached the conclusion that the deposit protection system does not affect on capital adequacy, nor does it affect bank profitability, and in both of the iraqi and jordanian sectors, the deposit insurance institution more reflection on the individual dealers than on the performance of the banks themselves. deposit insurance system, capital adequacy, bank profitability, deposit insurance institution. introduction achieving banking stability is a fundamental goal towards economic development that supports financial growth, competition, and improvement of banking efficiency and effectiveness, that it depends on confidence the ability of banks to perform their operations, commitment to customers, and effective response to their requirements. a crisis in the banking system and a crisis of confidence among customers, and the fact that bank deposits are a necessary element to support this stability and at the same time are debts payable by the bank, any risk to those deposits is a direct threat to the banking system, so there are mechanisms to protect depositors and protect banks from defaulting or bankruptcy, american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 2 www.americanjournal.org and ensuring the general stability of the banking system. the role of the deposit protection system is to provide the possibility of compensating a class of depositors who have bank deposits because of bank’s default. the research aims to determine the nature of the impact of the bank deposit protection system on some financial indicators, foremost of which is capital adequacy and profitability. in order to enhance confidence, deposit protection company have been activated, and this is reflected positively on the financial indicators, indicated (chernykh & cole, 2011) in his study on the role of deposit protection in financial intermediation, that the protection system achieves great benefits for depositors, as well as (roman & danuletiu, 2013) the profitability of banks can be improved by improving quality management, increasing non-interest income, and increasing the size and branches of banks, and (mohsen, 2016) indicated in his study to assist decision makers in the possibility of establishing and managing a system to guarantee deposits, that the safety net is an integral part of the basic financial environment. the demand for bank deposits is essential in this type of system, and (al-imam et al., 2017) believes that banking awareness is one of the most important factors that specifically affect banking., and (fecht et al., 2019) indicated that heterogeneous insurance on bank deposits can lead to reallocation of deposits suddenly, which threatens the stability of the banking sector. literary review banking institutions face multiple risks that threaten the sustainability of their work, the most important of which is the lack of financial stability, which leads to damage to the confidence of depositors in the bank, so it is necessary to find mechanisms that guarantee bank deposits to depositors, which is what bank deposit protection companies do, which help reduce the risk of bankruptcy and enhancing confidence in the banking system. establishing a bank deposit protection system to protect depositors from the financial failure of banks that accept and lend deposits, and to enhance confidence in the banking system through the establishment of institutions dedicated to protecting and compensating depositors in the event of stopping payment by banks, as well as protecting the banks themselves from collapse due to the panic of depositors in crises unexpected (zanoun,2017:445), and it fully or partially compensates the customer’s deposit from the deposit insurance fund when the customer’s deposit is in danger due to the default of the bank in which the deposits are placed, or in the event of bankruptcy, or stops paying, noting that the fund consists of the contributions of the participating banks and is paid in accordance with the obligations of the banks to provide financing through subscription or donation, which is usually a percentage of the size of the bank deposit (anisa, 2019: 330). the mission of the deposit protection system may be limited to protecting small depositors, as it acts as an insurance policy in this case, but if it depends on supporting banks in a banking crisis, then its role in this case is symbiotic, but the difference here is the level of commitment to enhance public confidence in the system or sector the banker (mohsen, 2016: 83). the deposit protection institution is represented by a mixed joint-stock company funded by the state, represented by the central bank. although its nature is private, it is based on a system of public interest. in addition, participation in deposit insurance companies is mandatory, meaning that all legally established banks participate in the capital of deposit insurance companies, and the percentage of the capital of deposit insurance companies is determined by a decision (awadi & khazai, 2019:485). with regard to developing countries, you see the importance of securing and protecting deposits based on the government and its contributions to reviving this system to a greater extent than in developed countries. banks for some in developing countries are impractical due to the limited markets and the impact of the problem of one bank on other banks, and the government’s american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 3 www.americanjournal.org participation in the ownership of banks made it a reason for its existence by guaranteeing deposits in a large way (sabir, 2014: 19). and the deposit insurance system not only compensates depositors for losses resulting from bank failure, but it is also a preventive system in addition to its therapeutic function, so its existence is important (kamal, 2012: 15), in conclusion the system encourages economic growth and reduces stagnation as it helps in increasing the cash flow to banking institutions, and thus improving the ability of banks to engage in investment business, and contributes to the stability of the payments system: the process of depositing funds in the bank allows the public and institutions to move their accounts (withdrawals and deposits) unconditionally at any time until the payment system is running efficiently, the public must make sure that the money they deposit in their banks is of the same level of security directed to cash and this feeling of security and guarantee through the deposit protection system, as well as enhancing public confidence in the banking system and providing the appropriate environment for competition between new and large small banks, and making the cost of liquidating troubled banks common among all banks (abboud & attia, 826: 2021). it represents the central bank that directly controls the deposit guarantee institution, especially in the early stages of establishing the system, as it determines the financial institutions and banks that must participate in the deposit guarantee system, determines the percentage of banks’ contribution as a banking sector and the contribution of the relevant government agencies, and determines the types of deposits covered by the guarantee especially for the foreign sector in accordance with its monetary policy, determining the percentage and the upper limit of compensation according to the financial resources of the system, and then financial supervision and control over its financial situation, and it must be determined whether the bank has reached the level of insolvency and whether it has reached the level of bankruptcy and then it decides whether to compensate depositors through the authority or to bear it by the bank with temporary assistance from the central bank, and thus the central bank exercises supervisory duties over banks, and this is done by collecting and analyzing banking data that allows it to assess the condition of banks. (qahtani, 596: 2020). capital adequacy: defined it “the amount of capital that is sufficient to absorb the losses that occur from credit, investment and other ancillary works carried out by banks, that is, in short: absorbing the risks of investing money, in addition to allowing the bank to continue at work. and accordingly, capital it must be sufficient to provide safety and reassurance to depositors, to the supervisory authorities, provide loans, invest funds and provide financial services . ability of banks resilience in the face of surprises and shocks, and therefore it is the least likely to collapse, or the least in need of government intervention. this fact is supported by the fact that the adequacy of bank capital the regulatory authorities and the public, depends mainly on its capital, but did not prevent the failure of some banks in some countries, as a result of the practice of basic errors in their operations that may crystallize in problems related of the loan portfolio, or defects in internal control as well as mismanagement and weak effectiveness of banking systems. (fairlamb, 1994: 16-17) the issue of defining capital adequacy standards is of interest to both the supervisory authorities and bank managements together, given the role played by these standards in strengthening the credibility of the financial system, as the purpose of these standards is to ensure that the bank maintains a minimum of its own funds to face the risks it is exposed to, in order to absorb any expected losses, while giving bank owners and managers an incentive to manage the bank properly. and that the effective measurement of the adequacy of bank capital requires a sound assessment of the assets of banks, and american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 4 www.americanjournal.org until this is achieved, the analysis of the adequacy of bank capital must be done with great caution. in addition, data problems make (ratios) of bank capital adequacy vulnerable to manipulation in many cases, that is, when the quality of data is poor, or the condition of the bank tends to deteriorate, then (ratios) of capital adequacy are usually late indicators of the existence of banking problems. . even when conditions improve, the capital in itself prevents the bank from facing difficulties, but of course the more capital the bank has, the greater its ability to solve its problems (ben sengour et al., 1995: 85). it is worth noting that it is difficult to ensure the integrity of the financial positions of banks and avoid failure by paying attention to capital adequacy standards alone, despite their importance in this field. many studies have shown that large banks in the world had high capital adequacy, but they failed for reasons others, the most prominent of which was the lack of liquidity in meeting unexpected withdrawals of depositors, and the failure of the monetary authorities to play the role of the last lender as required (gardener, 1981:45). in fact, the important supervisory role exercised by the monetary authorities in ensuring the safety of the financial positions of banks must go beyond ensuring compliance with capital adequacy standards. . there is no doubt that such criteria and others are difficult to express in certain proportions, as is the case in capital and liquidity ratios, which are generally no less important than measurable criteria (nabulsi, 1990: 102). accordingly, it is necessary to be guided by several criteria through which it is possible to identify the appropriate amount or the minimum amount of bank capital sufficient to protect depositors’ funds and the safety of the banking system. profitability: expresses the relationship between the results achieved during a certain period of time and the means used to achieve those results. (mustafa and murad, 2013: 35) the importance of profitability lies in the survival and continuity of the bank, as it is a source of confidence for every depositor, lender, and creditor of the bank, and it represents an important measure of the efficiency of the use of available resources. merchants are encouraged to invest in banks. in addition, profitability allows development and expansion in the field of providing banking services and the development of new services. and it is a clear sign of the bank's competitive position in the banking market, where confidence in management efficiency increases and the market strengthens the bank's position by retaining existing customers and attracting potential customers (muhammad, 2014:541). the importance of profitability is also reflected in the stability of the financial system, because the banking system al-saleem is built on the shoulders of profitable banks, and the profitable banking sector is considered more capable of withstanding negative shocks and the consequent great shocks. and significant changes that accompany the banking environment (ayanda, et al., 2013: 155). 1. methodology 1.1 the research sample the study population consisted of the iraqi deposit insurance institution and the jordanian deposit insurance institution with a group of private iraqi and jordanian commercial banks the sample of the study included private iraqi banks listed in the iraq stock exchange, which are (bank of baghdad, iraqi middle east investment bank, al-ahly bank of iraq, ashur international bank for investment, international development bank for investment and finance), while jordan's private banks listed in the amman financial market are (bank of jordan, jordan commercial bank, arab investment bank, arab banking corporation bank, investment bank) in addition to the iraqi deposit insurance corporation and the jordanian deposit insurance corporation, and the financial and statistical analysis approach american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 5 www.americanjournal.org was used by collecting data from the financial statements of the banks under study and analyzing them according to 13 eviews program during the period (2018-2021) . 1.2 measure variables the following ratio was adopted in measuring the research variables, as shown in the following table(1): table (1) measuring tools variable type symbol the measurement tool source deposit insurance system independent x = deposit guarantee fee/total bank expenses (anisa, 2019: 330) capital adequacy dependent y1 =level 1 capital + level 2 capital + level 2 capital) / risk weighted assets (fatima,2014:773) profitability ddependent y2 return on investment = net income / total assets (stiroh,2004:143) 1.2.1 iraqi banks the results of measuring the percentage of deposit guarantee fees showed a general average of (0.0052). at the level of the research sample banks, the middle east bank recorded the highest average of (0.015) and a standard deviation of (0.016), while the ashur bank recorded the lowest average of (0.0015) and a deviation of (0.0015). normative (0.0003), while at the level of research years extending from (2018-2021), the year 2021 recorded the highest average (0.0085) and a standard deviation (0.0105), while the year 2018 recorded the lowest average by (0.0018) and a standard deviation (0.0012). table (2) results of calculating the deposit guarantee fee percentage. table (2) the results of calculating the percentage of bank deposit guarantee fees for a sample of iraqi banks banks 2018 2019 2020 2021 avr. std. baghdad 0.0020 0.0022 0.0031 0.0035 0.0027 0.001 the middle east 0.0014 0.0310 0.0011 0.0267 0.0151 0.016 al ahly 0.0006 0.0012 0.0018 0.0041 0.0019 0.002 ashur 0.0016 0.0013 0.0012 0.0018 0.0015 0.0003 al tanmya 0.0039 0.0044 0.0070 0.0101 0.0063 0.003 avr. 0.0018 0.0079 0.0024 0.0089 0.0052 std. 0.0012 0.013029 0.00255 0.0105 the results of measuring the general capital adequacy ratio showed an amount of general average (142.32). at the level of the research sample banks, the development bank recorded the highest average of (207.2) and a standard deviation of (2.7), while the national bank recorded the lowest average of (69.6) and a standard deviation of (32.5). as for the years of research extending from (2018-2021), the year 2019 recorded the highest average (162.2) and a standard deviation (83), while the year 2021 recorded the lowest average by (128.8) and a standard deviation (84). table (4) shows the results of calculating the capital adequacy ratio. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 6 www.americanjournal.org table (4) the results of calculating the capital adequacy ratio for a sample of iraqi banks banks 2018 2019 2020 2021 avr. std. baghdad 116 127 64 75 95.5 30.6 the middle east 133 110.2 111.2 106.2 115.1 12.1 al ahly 106.6 82.8 58.2 30.9 69.6 32.5 ashur 116 287 271 222 224 77.1 al tanmya 206 204 209.13 210 207.2 2.7 avr. 135.5 162.2 142.7 128.8 142.32 std. 40.5 83 93.8 84 the results of measuring the rate of return on investment showed a general average of (0.03). at the level of the banks of the research sample, the middle east bank recorded the highest average of (0.071) and a standard deviation of (0.139), while the ashur bank recorded the lowest average of (0.0015) and a deviation normative (0.0003), while at the level of research years extending from (2018-2021), the year 2021 recorded the highest average (0.0085) and a standard deviation (0.0105), while the year 2018 recorded the lowest average by (0.0018) and a standard deviation (0.0012). table (4) results of calculating the deposit guarantee fee percentage. table (4) the results of calculating the return on investment for a sample of iraqi banks banks 2018 2019 2020 2021 avr. std. baghdad 0.0086 0.0048 0.0095 0.0181 0.0103 0.005 the middle east 0.0007 0.0024 0.28 0.0024 0.0714 0.139 al ahly 0.0616 -0.010 0.0181 0.0273 0.0241 0.029 ashur 0.0408 0.0134 0.0166 0.0406 0.0278 0.014 al tanmya 0.0039 0.0044 0.007 0.0101 0.0063 0.002 avr. 0.0231 0.0029 0.0662 0.0197 0.03 std. 0.0268 0.0086 0.1195 0.0149 1.2.2 jordanian banks the results of measuring the percentage of deposit guarantee fees showed a general average of (0.0011). at the level of the research sample banks, the investment bank recorded the highest average of (0.00142) and a standard deviation of (0.00018), while the jordan investment bank recorded the lowest average of (0.0007) and a standard deviation. (0.00015), while at the level of research years extending from (2018-2021), the year 2018 recorded the highest average (0.0016) and a standard deviation (0.0004), while the year 2021 recorded the lowest average (0.0008) and a standard deviation (0.0003). (5) the results of calculating the percentage of deposit guarantee fees. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 7 www.americanjournal.org table (5) results of calculating the percentage of bank deposit guarantee fees for a sample of jordanian banks banks 2018 2019 2020 2021 avr. std. jordan 0.0020 0.0014 0.0004 0.0005 0.0011 0.000759 jordanian commercial 0.0018 0.0013 0.0012 0.0012 0.00141 0.000295 jordanian investment 0.0009 0.0006 0.0006 0.0007 0.0007 0.000157 arab banking corporation 0.0014 0.0010 0.0010 0.0010 0.0011 0.000214 investment 0.0017 0.0014 0.0014 0.0013 0.00142 0.000182 avr. 0.0016 0.0011 0.0009 0.0008 0.0011 std. 0.000406 0.00035 0.000395 0.000339 the results of measuring the general capital adequacy ratio showed an amount of general average (22.69). at the level of the banks of the research sample, the bank of jordan recorded the highest average of (39.07) and a standard deviation of (6.744), while the jordan investment bank recorded the lowest average (14.52) and a standard deviation of (1.214). ), as for the years of research extending from (2018-2021), the year 2019 recorded the highest average (23.3) and a standard deviation (11.78), while the year 2020 recorded the lowest average (21.36) and a standard deviation (7.29). table (6) shows the results of calculating the capital adequacy ratio. table (6) results of calculating the capital adequacy ratio for a sample of jordanian banks banks 2018 2019 2020 2021 avr. std. jordan 45.4 44.4 32.9 33.6 39.07 6.744 jordanian commercial 18.2 19.5 20.2 21 19.72 1.187 jordanian investment 15 16 13.3 13.8 14.52 1.214 arab banking corporation 16.3 16.6 17.1 19 17.25 1.212 investment 20.2 25 23.3 23 22.87 1.988 avr. 23.02 24.30 21.36 22.08 22.69 std. 12.66 11.78 7.43 7.29 the results of measuring the rate of return on investment showed a general average of (0.0088). at the level of the banks of the research sample, the bank of jordan recorded the highest average (0.0143) and a standard deviation of (0.0015), while the arab foundation bank recorded the lowest average (0.0048) and a deviation of (0.0048). while at the level of research years extending from (2018-2021), the year 2020 recorded the highest average (0.01) and a standard deviation (0.0046), while the year 2020 recorded the lowest average (0.0058) and a standard deviation (0.0043). table (7) show results of calculating the percentage of return on investment. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 8 www.americanjournal.org ( نتائج حساب العائد على االستثمار لعينة المصارف االردنية7جدول ) banks 2018 2019 2020 2021 avr. std. jordan 0.016 0.015 0.013 0.013 0.0143 0.0015 jordanian commercial 0.005 0.008 0.005 0.005 0.0058 0.0015 jordanian investment 0.008 0.008 0.005 0.008 0.0073 0.0015 arab banking corporation 0.008 0.002 0.001 0.008 0.0048 0.0037 investment 0.014 0.014 0.005 0.014 0.0118 0.0045 avr. 0.010 0.0094 0.0058 0.0096 0.0088 std. 0.0046 0.0052 0.0043 0.0037 1.3 hypothesis test results because of the research variables, the number of banks included in the research sample, and the research time period that cover, this type of data was sorted by panel data, which combines crosssectional data that describes the behavior of specific observations or items during one specific period of time, and time series that describe the behavior of a single item. one over multiple time periods, and data that were not normally distributed were tested, and accordingly, the random effects model was used, which requires that the error limit be distributed normally by a mean of zero, and this requires that the variance be constant for all observations, and there is no linear multiplicity between observations : 𝑦𝑖𝑡 = 𝛽0(𝑖) + ∑ 𝛽𝑗𝑥𝑗(𝑖𝑡) + ∈𝑖𝑡 𝑘 𝑗=1 𝛽0(𝑖) = 𝜇 + 𝑉𝑖 the research aims to test the main hypotheses: h1-1: there is a statistically significant effect of deposit guarantee fees on capital adequacy in the iraqi banking system. an effect coefficient (-0.141) was recorded with a significant significance (0.04), which indicates the existence of an inverse effect relationship between deposit guarantee fees and capital adequacy. the explanatory coefficient was (r2 = 0.07), which means that changes in capital adequacy are explained by changes in the deposit guarantee fee rate of (7%), while the rest of the changes (93%) are explained by other variables, and thus the results confirm the first alternative hypothesis. increasing the percentage of deposit fees will lead to a decrease in the adequacy of the bank’s capital, as a result of the increase in the costs of the guarantee and the bank’s . h1-2: there is a statistically significant effect of deposit guarantee fees on profitability in the iraqi banking system. an effect coefficient of (-0.453) was recorded with a significant significance of (0.62). it indicates that there is no effect relationship between deposit guarantee fees and profitability, which recorded a coefficient of explanatory (0.081 = r2), and thus the results confirm the zero hypothesis and negate the second alternative hypothesis, the increase in the percentage of deposit fees will not lead to a change in bank profitability. the nature of the iraqi banking environment, which suffers from a gap of confidence among individuals in the iraqi banking system, as well as the volume of non-performing debts that the sector suffers from, and thus low profitability . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 9 www.americanjournal.org h1-3: there is a statistically significant effect of deposit guarantee fees on capital adequacy in the jordanian banking system. an effect coefficient (-0.140) was recorded with a significant significance (0.14), which indicates that there is no effect relationship between deposit guarantee fees and capital adequacy. in the jordanian banking system, changes in capital adequacy cannot be explained by changes in the deposit guarantee fee ratio, and thus the results confirm the zero hypothesis and negate the third alternative hypothesis, and accordingly, an increase in the deposit fee rate will not lead to an increase in the bank's capital adequacy . h1-4: there is a statistically significant effect of deposit guarantee fees on bank profitability in the jordanian banking system. it recorded an effect coefficient (0.933) with a significant significance (0.35), which indicates that there is no effect relationship between deposit guarantee fees and profitability, which means that changes in bank profitability are explained by changes in the profitability ratio, which are not explained by the deposit guarantee fee rate. thus, the results confirm the zero hypothesis and negate the fourth alternative hypothesis. profitability. 1.4 discussion despite the great difference in the nature of the iraqi banking system from the jordanian one, as the latter enjoys relative stability and the use of advanced banking operations and the existence of a strict supervision system and old experience in its performance, in contrast to the iraqi banking system that is going through a period of radical performance transformation and the repercussions of the nature of the economy on its operations, financing and even methods of granting loans which made it go through many bumps, but it is noticeable from the results of hypothesis testing that there is a complete match for the results of testing the two hypotheses in both the iraqi banking system and the jordanian banking system. it is recognized that it will leave an impact on the performance of banks and individuals who deal with it, ensuring that individuals are not exposed to the possibility of losing their deposits as a result of various crises or accidents, and thus enhances the confidence of individuals in the banking system and can motivate them further to expand their operations and deposit their savings in the system, which provides sufficient liquidity it allows banks to expand credit and the package of services they provide in quantity and quality. 2. conclusion 2.1 there is no effect of bank deposit guarantee fees on capital adequacy in the iraqi and jordanian banking environment . 2.2 there is no effect of bank deposit guarantee fees on banking profitability in the iraqi and jordanian banking environment. 2.3 the results of the hypothesis test for the iraqi banking sector are consistent with the jordanian banking sector. 2.4 the results of testing the hypotheses of the research contradict with many of the previous studies results. this may be due to the nature of the banking system in iraq and jordan and the size of the state's intervention. 2.5 the repercussions of the presence of the bank deposit insurance institution could be psychological on individuals dealing with banks in both countries more than its impact on the performance of the banks themselves. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 10 www.americanjournal.org sources: 1. aridi, a. (1988) “the mediator in banking management”, 1st edition, dar al-mustashir for printing, publishing and distribution, beirut . 2. ben sengour, h. and kamel, s. (1995) “the arab banking industry and the world of modern finance,” union of arab banks, beirut. 3. nabulsi, m. s. (1990) the challenges of arab banking work in light of the decisions of the baal committee on capital adequacy, union of arab banks, beirut, 4. mohsen, m. m. (2016), assessing the readiness of the banking system in iraq to establish a system to guarantee bank deposits. al-mustansiriya journal of arab and international studies, volume 13, issue 53 . 5. khazali, r. a., (2017), determining the optimal ratio of liquidity in iraqi commercial banks for the period (2005-2013), applied research for a sample of iraqi private commercial banks, journal of accounting and financial studies, volume 12, issue 41. 6. imam, s. a. and al-khazali, r. a. (2017), determining the optimal liquidity ratio in iraqi commercial banks for the period 2005-2013: an applied research for a sample of iraqi private commercial banks. journal of accounting and financial studies, volume 12, issue 41 . 7. za’noun, m. m.. (2017) the role of deposit insurance systems in improving liquidity risk management in banks: a comparative study, scientific journal of commercial and environmental studies, volume 8, issue 1. 8. anisa, s. (2019), the bank deposit guarantee system: between support and opposition: a case study of algeria according to the latest developments for the year 2018, north african economics journal, volume 15, issue 21 . 9. mohsen, b. s. (2016), modern methods of liquidity risk management: the liquidity at risk approach, journal of economy and finance, algeria, issue 3 . 10. awadi, m. k. and al-khuza’i, s. m. (2019) legal reading in the iraqi bank deposit guarantee system no. 3 of 2016, iraqi academic scientific journal, volume 10, number 1. 11. sabir, a. i. (2014) deposit guarantee fund and its impact on reducing credit risks and enhancing banking confidence, unpublished master thesis, sudan university of science and technology 12. kamal, zitouni, (2012), the role of the deposit insurance system in the safety of banks from insolvency, master thesis, m'sila university, faculty of economic, commercial and management sciences . 13. abboud, w. a. and attia, a. s. (2021) the effectiveness of deposit guarantee institutions in achieving banking stability, jordan, a case study for the period 2006-2019, al-kout journal of economics and management sciences, volume 42, number13 . 14. qahtani, sarah m. (2020) insurance for cash bank deposits in islamic banks: its shari’a ruling and jurisprudential controls, journal of the saudi fiqh association, leather 49. 15. aridi, adnan (1988) “the mediator in banking management,” 1st edition, dar al-mustashir for printing, publishing and distribution, beirut . 16. ben sengour, h. and kamel, saleh (1995) the arab banking industry and the world of modern finance,” union of arab banks, beirut. 17. mostafa, abd al-latif, and mourad, abd a. (2013) the impact of the research and development strategy on the profitability of the economic enterprise, journal of the performance of algerian enterprises, issue 4 . american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 11 www.americanjournal.org 18. muhammad, ali m. (2014), the interest rate and its impact on the profitability of commercial banks (a case study of the bank of syria and overseas llc), damascus university journal of economic and legal sciences, volume 30, number 1. 19. fairlamb, david(1994 ) banking’s capital village: beyond capital ”, institutional investor, 20. gardener, edward p.m,. “ capital adequacy and banking supervision”, bangor, occasional papers in economics, no. 19, university of wales press, 1981. 21. chernykh, l., & cole, r. a. (2011). does deposit insurance improve financial intermediation? evidence from the russian experiment. journal of banking & finance, 35(2). 22. roman, a. & danuletiu, a. e. (2013). an empirical analysis of the determinants of bank profitability in romania. annales universitatis apulensis: series oeconomica, 15(2), 580. 23. fecht, f., thum, s. & weber, p. (2019). fear, deposit insurance schemes, and deposit reallocation in the german banking system. journal of banking & finance, 105. 24. fairlamb, david, “ banking’s capital village: beyond capital ”, institutional investor, ( august, 1994 ). 25. gardener, edward p.m.(1981)“capital adequacy and banking supervision”, bangor, occasional papers in economics, no. 19, university of wales press, 1981. 26. ayanda, a., christopher, e. & mudashiru, m. (2013) "determinants of bank’s profitability in a developing economy: evidence from nigerian banking industry", interdisciplinary journal of contemporary research in business, 4, 9, pp 154-181. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 105 www.americanjournal.org theoretical interpretation of business processes in insurance activity: generality and specificity khusanov fakhriddin student of the tashkent financial institute a b s t r a c t k e y w o r d s the components of business processes include the creation of new products, sales, services, forecasting, human resource management and other activities aimed at improving operational efficiency. insurance, business, insurance activity, insurance market, professional participants, insurance intermediaries, reengineering business processes. introduction in the context of innovative development of the economy, uzbekistan is experiencing rapid development of the insurance market. it should be noted that increasing the competitiveness of the national economy through the modernization and diversification of the insurance industry will significantly increase the perception of insurance relations as an important means of reducing losses, both in the field of production relations and among the population. the effectiveness of a business process system in insurance activity is measured by its effectiveness for the client. business process management is carried out in a systematic way according to an integrated goal. it is based on the number of employees, turnover, customer type or market geography. any action, document, event, or business task is interconnected and intended to achieve a goal set during business processes. the effectiveness of subsequent work on business process management depends on how clearly and accurately the boundaries are defined. if the boundaries are not set correctly, the following: lack of detailed description of business processes; incorrect analysis of business process efficiency; inaccurate assessment of the resources spent on the process and its duration; ineffective division of responsibilities due to incorrect identification of subjects and participants in the process; improper identification of business processes can lead to a number of unexpected problems due to the detection of errors in service technologies. there are two ways to define business process management boundaries simple and automatic. forming a database in an information system for automatic detection involves the introduction of a american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 106 www.americanjournal.org number of processes. such an information system is not designed for everyone, so the boundaries of business processes have to be defined in a simple way. the end of one process always realized the beginning of another. every business process is focused on the production of one or more products, the provision of services. they are often referred to as exit points in the process. defining process boundaries involves solving a number of problems. one is to determine the duration of the process and whether it is complete. obtaining the information needed to produce an insurance product means that the business process has begun. for example, a customer’s call, an unsolicited email address, an order received, the start of a business day, and so on. the initiation event may or may not be technologically consistent with the concept of access. any process is one or more start (input) and end (output) events observation indicates interruptions in the system. the correct tariffing of input and technological products will be a factor in creating a single system of interconnected business processes. in this regard, business processes in insurance activities are stable and it is important to ensure a dynamic flow. the substantive priority of business processes in insurance activities over other entities of the financial services market is explained by the fact that the implementation of these processes is based on calculations that determine the main parameters, which ultimately contributes to market requirements. business process indicators are, in a systematic way, a set of general quantities and qualities that characterize the outcome of each process (s). the organizational structure of business processes in insurance is as follows (figure 1): a) according to the hierarchy of activities: individual horizontal processes (separate results of activities carried out by each division or employee of a particular division); functional horizontal processes (the result of integrated generalized activities of organizational units); vertical processes (the result of activities that reflect the interaction of employees (units of the organization)); integrated processes (results of vertical and horizontal interaction of subjects). b) according to the level of complexity of activity: mono processes; -internal processes; specific processes. c) according to the purpose of activity: basic business processes; specific operational processes (product creation and delivery to the customer); value creation processes (direct impact on the product); business support and management processes. g) according to their place in the hierarchy of organizational goals: high-level business processes (realization of strategic goals); intermediate business processes (realization of tactical goals); american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 107 www.americanjournal.org low-level business processes (realization of operational goals). d) according to the use of the database: related to macro processes; business processes in insurance activity by grounding and components by criteria criteria signs processes by hierarchy by purpose in accordance with the goals of goals by the volume of data according to the level of complexity individual horizontal processes basic processes high-level business processes macro processes mono processes functional horizontal processes in the cross section precise operation processes intermediate business processes intermediate business processes internal processes vertical processes value creation processes low-level business processes microprocesses other specific processes integrated processes support processes management processes figure 1. grouping and components of business processes in insurance activities according to criteria1 related to medium-level business processes; can be divided into components related to micro-processes. 1developed by a researcher. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 108 www.americanjournal.org today in insurance business there is a need to clarify the nature of business process problems and develop solutions, in particular, the priority is to adapt business processes to changes in external and internal environmental parameters. business processes in insurance activities are directly related to this activity, for example, the activities of professional participants in the insurance market and insurance intermediaries, the study of the nature of entrepreneurship and business, and other systematic measures, including insurance contracts, risk mitigation warnings, etc. it includes a wide range of activities (operations), such as the formation and use of trust funds, which are directed to the implementation of complex measures, the investment of idle resources. in insurance activities, business processes are directly linked to the identification, assessment and management of risks. it should be noted that the presence of risk is a prerequisite for the insurance business. the functions of business processes in insurance activities are as follows (figure 2): establishment of an insurance fund; use of the insurance fund; -investment; carrying out other activities aimed at earning income; -monitoring and control; -reengineering (restructuring of activities). the presence of these functions of business processes in insurance activity means that the scope of the research object is extremely wide. therefore, this study focused on the structural and organizational aspects of business processes and improving their management. business processes in insurance activity are a set of interrelated activities (operations) aimed at the production of insurance products or the provision of insurance services. the purpose of managing these processes is to ensure quality customer service. at the same time, the management of these processes should be considered as an interconnected systemic relationship in the integrity of material, financial and information flows. a necessary condition for its improvement is to take into account the fact that the specifics of insurance activity are reflected in the implementation of certain individual activities (operations) and in the integrated system of business processes. business processes in insurance activity functions o r g a n iz a t io n o f in s u r a n c e f u n d u s e o f t h e in s u r a n c e f u n d in v e s t m e n t im p l e m e n t in g o t h e r i n c o m e a c t iv it ie s m o n it o r a n d c o n t r o l r e in ji n ir in g figure 2. business processes in insurance activities functions 2 2 developed by a researcher. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 109 www.americanjournal.org insurance business processes are an interconnected complex aimed at overcoming the problems that arise in the implementation of a particular activity, and are a coherent, targeted and regulated activity consisting of the entry, maintenance and exit of processes. (operations) system. the processes of development and implementation of insurance services (products, programs) are as follows: carrying out marketing research based on demand and supply; -creation of the product (s); -development of action strategies and tactics and based on them to make certain decisions; -monitoring and control; consists of stages such as activity reengineering. typically, the following functional business processes are observed in insurance activities: -basic (strategic) processes; tactical processes; -development process; -management process. the goal of any business process is to meet customer needs. conversely, business processes cannot exist without the presence of a customer. in this case, it is effective that the logical sequence of all systemic activities (operations) described in business processes is focused on a specific goal in the context of a specific industry mission. however, it should be noted that the fact that the processes of any activity (operations) are not perfect does not lead to the absolute expected result. therefore, adjustments are also required in the implementation of these processes. of course, modernizing business processes requires certain resources. insurance companies as a business entity, carry out insurance business processes in risky conditions. this evidence is reflected in the fact that insurance activity differs from the activities of other sectors of the economy and the main results of this activity are inextricably linked with the probability of occurrence of an event. the economic nature of insurance determines the characteristics of the business process system of this activity. in this sense, business processes are necessary measures that effectively reflect the entry point (start of processes) and the exit point (end result), ie the end of processes. in this case, the results are achieved through the quality and quantity of resources expended, that is, the processes involved in the cross-cutting functionality of accounting, control and management, which contributes to the expected result of the activities (operations) necessary to achieve the specified goal (s). accordingly, insurance business processes consist of a number of sub-processes, and the performance of certain functions, each of which is a factor in achieving tangible results. in this case, the end result of the processes may differ / not differ from the expected. in particular, the achievement of different results in the functionality of business processes is explained by the fact that they are exposed to different risks. for example, such a source of influence may have occurred at the expense of the external environment. the efficiency of business processes in insurance activities is determined by the degree of correlation between the planned parameters and the results obtained. it is advisable to determine the effectiveness of financial and economic activities in terms of business processes. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 110 www.americanjournal.org insurance activity as an integrated system of a number of interrelated processes is as follows: risk transfer; risk transformation; investment; in other areas related to the activity. the main business processes of technological insurance are as follows: tariff policy; conclusion, execution and management of insurance contracts; the calculation of insurance reserves, etc. investment activities (operations) of insurance entities are processes that are associated with its objects and are a source of additional income through direct insurance reserves and the effective placement of their funds in certain areas. such activities also require risk minimization. reimbursement of losses (losses) that may occur as a result of investment risks is made at the expense of insurance reserves or the insurer's own funds. investment risks can also be observed due to changes in legislation, market instability, credit risk. the processes of investment risks in insurance activities are reflected in the accounting and reporting system. the formation of the insurance portfolio, reserve system and financial results in the accounting system of insurance activities is the basis for each risk analysis of the stages of the process. in particular, the processes of formation of the insurance portfolio include tariff policy, collection of premiums under the insurance contract, as well as reinsurance operations. the formation of the insurance portfolio is based on the collection of insurance, mutual insurance and reinsurance premiums, cash flows and fund accounts. insurance tariffs can be significantly differentiated and stratified due to the specific characteristics of life insurance and general insurance networks. it should be noted that in order for insurance tariffs to be formed in the most optimal way, their accounting system must have a quality database. insurance risk management includes processes such as risk identification, identification, assessment, decision-making on its transfer, determination of contract terms, insurance coding. in insurance business, business processes in a complex and functional way consist of the provision of insurance services that meet the needs of the client, the execution and maintenance of contracts, underwriting, expansion of services, the provision of claims. in practice, these business processes are constantly repeated. as an entity of business processes, an insurance company often faces internal organizational and technological challenges that reduce efficiency: unreasonable periodicity of the decision-making process; incompatibility of the organizational structure with business processes; non-transparency of business process functions for managers and executors; normative documents, instructions and rules are not developed at the required level; duplication of control system components in terms of functions; lack of management skills. these problems make it necessary to modernize the insurance business due to the special importance of internal business processes. an important factor in ensuring the financial stability of an insurance american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 111 www.americanjournal.org company is the achievement of its own interests and customer confidence in terms of its relationship with its customers. using the strengths of the porter model, eight and more process models, as well as the activities of insurance companies regulatory regulatory requirements and the specifics of business processes feature description developed (figure 3)3. success described in systematic business processes factors indicators descriptorical indicators of customer relations customer base. customer engagement rate indicators of expanding customer base coverage quality improvement customer service and satisfaction index interregional attractiveness customer performance efficiency of customer activities (by regions) availability of activities (operations) market position and share in it sale of insurance products the amount of insurance premiums collected profit / gain efficiency level indicator investment activity investment efficiency indicator indicators of internal processes types of services service expenses process efficiency scope of activity (operations) creating and selling new products sales volume the effectiveness of the contract fees paid to an agent targeted development of activities (operations) indicators for training and development of personnel and information systems application of digital technologies in key processes technological improvement and support in the sale of services service of insurance contracts coverage of claims on the insured event digital technology application index information retention staff turnover figure 3. described in systemic business processes success factors and indicators 4 3yagunova, n. a. assessment of the competitive environment of an enterprise using the five forces model of michael porter. / n. a.режим доступа: http://cyberleninka.ru/article/n/otsenka-konkurentnogo-okruzheniya-predpriyatiya-sispolzovaniemmodeli-pyati-sil-maykla-portera. 4five competitive forces analysis model by michael porter. [electronic resource] / access mode: http://powerbranding.ru /biznes-analiz/porter-model/. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 112 www.americanjournal.org the need for business process optimization occurs not only when process inefficiencies are identified, but also when: changes in the organization's strategy, for example, revision of insurance priorities; structural changes in the organization; change of management, leadership or founder (affiliation); introduction of digital technologies; introduction of a system of transparency in the processes of activities (operations). once the cause of the difference between the expected quality (result) and the existing quality in the development of business processes is determined, it is necessary to create a mechanism to ensure that its factors are eliminated. for this purpose, business processes are as follows: reconstruction of business processes with a principled approach (create); through the improvement and redesign of existing business processes. development of business processes in insurance business is as follows: a) ensuring a logical sequence of practical activities (operations): decision making; execution of decisions; reflection of the results of the implementation of decisions in documents and databases. b) creation of instructions on the stages of certain activities (operations): development of a normative document on the procedure for carrying out activities; normative document related to ensuring transparency of management creation; development of guidelines for system functionality. c) division of labor: on the activities of managers (general, strategic decision-making and division of labor in process management); on the activities of specialists (employees) (to ensure the implementation of existing decisions); on the activities of technical staff (secretariat, office). g) special division of labor: mutual generalization of the same activity; mobilization of specialized resources for the implementation of the same activity; not to involve highly qualified specialists (employees) in technical work; d) capacity exploration and process optimization. e) description of activities (operations) in business processes. j) identification and elimination of process problems. h) overcoming problems between certain units in the process. i) inter-departmental information exchange (engagement service accounting support) on the fulfillment of potential customer requirements and consideration of the impact of internal and external environment should be carried out under the auspices of the task force. to increase the efficiency of insurance services: attracting customers (promotion, sales of services); underwriting and reinsurance, ensuring the satisfaction of claims; american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 113 www.americanjournal.org improving the accounting system is required. based on this requirement, each of them should be considered as a separate business process, approached from the point of view of efficiency, which, in turn, serves to ensure the efficiency of business processes in insurance activities. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 63 www.americanjournal.org development of the activity of the banking system in the conditions of innovative development tashmatov shuhrat hamraevich, tashkent state university of economics, department of "fundamental economics", professor a b s t r a c t k e y w o r d s the article examines the development and improvement of banking activities in the context of diversification, identifies the priority directions of development of the banking services market. the directions of improving their elements and mechanisms of the banking services market are substantiated, the characteristic features of the development of banking activities and their impact on the social and economic development of the republic of uzbekistan are highlighted and described. foreign investment, audit, corporate management, compliance control, banking system, banking operations, bank management introduction in the process of modernization and diversification of economic sectors of our country, improving the economic condition of economic entities is of urgent importance today. today, as a result of the increasing role of internal audit in corporate management in attracting foreign investments, internal audit is used as an important tool for business protection, risk minimization and compliance control in world practice. the implementation of international standards in the accounting system in our republic creates a new approach to keeping records of transactions on the income received from the main activities of economic entities. one of the important tasks of the innovative development strategy of the republic of uzbekistan is the development of the banking system, taking into account the international experience, and the introduction of modern principles of management. ensuring the fulfillment of the above tasks requires the development of the normative-legal system that regulates the activities of the domestic banking system in accordance with international standards, the organization of the banking system based on international standards and conducting scientific research work on its improvement. it is known that the basis of the anti-crisis program is the decree of the president of the republic of uzbekistan dated november 28, 2018 no. pq-1041 "on additional measures for the further development of production and social infrastructure" adopted on january 20, 2018, and several other important documents aimed at fighting the crisis. in this regard, one of the most important demands of the present day is to direct the activities of banks to fulfill their requirements. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 64 www.americanjournal.org the analysis of the development of the banking system of uzbekistan during the years of independence shows that it was an active participant in market reforms in the country at every stage, making a great contribution to the implementation of the main task set forward by the country's leadership, that is, creating a foundation for more rapid development of the economy. improving the banking system in the republic is one of the important tasks in the stage of liberalization of the economy of uzbekistan. all the main economic problems of each stage in the implementation of market reforms largely depend on the solution of this task. reforms in the banking system of uzbekistan are being carried out in the context of deep and important changes in the field of banking activity today. in this case, there is a need to reorganize the management of banks. in today's rapidly changing times, the entire system of bank management is also developing rapidly. this should be taken into account, first of all, in countries that are implementing market reforms. this was recommended by experts of the world bank in the early 1990. in the early stages of the reforms, this happened mainly through the establishment of banks that specialized in serving particular sectors of the economy. in uzbekistan, the tendency to monopolize banking services is deepening in the development of commercial banks. the establishment of the first specialized commercial banks was conditioned by the need to finance certain branches and sectors of the economy of uzbekistan. later established specialized banks expanded the scope of their operations and customers. the orientation of banks to the market requires corresponding changes in the regulation and supervision of banking activities. the modern level of bank management is achieved only when it becomes a decisive factor in ensuring the safety and stability of banks and the entire banking system. in addition, the process of structural change of ownership relations in the banking system is underway in the republic in the following directions. in this environment, the reliability of the banking system can be achieved through a high level of bank management, market discipline and supervision of regulatory authorities. thus, in our republic, along with bank control, bank management is given special importance, and it is becoming the main market method of management in this field. at the same time, the mechanism of bank supervision and regulatory regulation of commercial banks has changed qualitatively. in the republic today, strict bank control, which is the basis of the stability of banks, ensures the timely identification and rehabilitation of problem banks with the help of monitoring, control and audit of their activities, and the reduction of cases of bank bankruptcies. taking into account the importance of this issue in the general direction of the further reform of the banking system of uzbekistan, active work is being done to strengthen the role of bank management in the republic. within this work, the central bank has developed special recommendations in cooperation with usaid experts. in these recommendations, the functional responsibilities of the board members were defined and a list of information that the board members should have in order to manage the work of the banks was given. in addition, joint-stock banks of the republic follow the instructions on improving corporate governance in banking institutions issued by the basel committee on banking supervision in 1999. taking into account the international experience, the central bank of the republic of uzbekistan complies with the new rules of the basel committee and brings the requirements of its guidelines as close as possible to them. in the implementation of the new rules, uzbek banks that have a rating or want to receive it (tif national bank was ranked among the thousand most reliable and largest banks in the world) must comply with these rules. this is also due to the fact that foreign counterparties, american journal of business management, economics and banking volume 20 january, 2024 p a g e | 65 www.americanjournal.org investors and customers calculate indicators that are compatible with the requirements of the basel committee. analysts will closely monitor how this or that bank implements the new regulations. the new agreement requires banks to pay more attention to the requirements for the calculation of profitability, taking into account the risk. this should lead to an increase in the quality of bank products and the formation of effective prices. in turn, within the third component, requirements in the field of market discipline ensure transparency of information about financial and operational risks. bank customers can get complete information about the risk control system and the level of reliability of the bank. the basel committee's new rules on capital adequacy are a turning point in the system of analysis of banks' activities. a lot of work needs to be done for banks to comply with the new regulations. however, regardless of the extent to which the new standards are introduced in uzbekistan, bank managers should start implementing the main principles of risk management written in the new regulations. these efforts are never wasted, as they lead to the introduction of new modern risk management measures and greatly contribute to the improvement of corporate governance. as a result, the reliability of the bank increases and its market position is strengthened. in addition, the basel committee developed the main principles of prudential regulation and supervision of banking activities. the application of these principles ensures the safety and reliable operation of banks, for which they must have the necessary capital and reserves to cover the risks that arise in the course of banking operations. in order to maintain effective banking supervision, the banking supervisory body must be independent in making decisions within its competence, which is determined by the applicable legislation. in addition, banking supervisory bodies should have the right to determine the rules for the implementation of operations, which are mandatory for banks, expressed by economic norms, the rules for keeping accounting records and bank statistical reports, and for drawing up annual reports. as a legal basis for the operation of a healthy banking system, the current legal documents give the banking supervisory authorities the opportunity to determine the procedure for licensing banking institutions and determine the scope of banking operations. in order to prevent the penetration of financial unstable structures into the banking sector, banking supervisory authorities should make sure that new banking organizations are established by reliable shareholders for a long time, have the necessary financial base, and that a leader with work experience and high moral qualities is appointed to it. the criteria governing the granting of licenses should be consistent with the norms used in the current control process. in cases where the operating establishment does not meet the established criteria, this case serves as one of the grounds for revoking the license. the effectiveness of bank supervision is conditioned by the fact that licensing and supervision procedures are provided with the legal right to apply measures for the normal functioning of the banking system. licensing regulations, as well as banking supervision tools, are aimed at limiting the number of bank failures and the amount of losses suffered by depositors. banking supervisory authorities, which have strict criteria for examining applications for a banking license, have the right to reject those that, in their opinion, do not meet the established criteria. the licensing process, at a minimum, involves an assessment of the proposed bank's ownership structure, its directors and management, its operating plan and internal control mechanism, and its projected american journal of business management, economics and banking volume 20 january, 2024 p a g e | 66 www.americanjournal.org financial position and capital. in cases where a foreign bank is offered to the owners, it is required to obtain the approval of the supervisory body of the country of origin of this bank. banks should also have well-established monitoring of current credit operations, including monitoring of borrowers' financial condition. the basis of any information management system is a database that contains the necessary information about the state of the loan portfolio, including information about the internal rating and credit classification system. adequate liquidity is necessary to ensure efficient banking operations. the most important thing in liquidity management is to ensure that the bank fulfills all its contractual obligations. elements of a well-thought-out liquidity management policy include well-established management information systems, centralized liquidity control, diversification of funding sources, and contingency planning. banks should have a diversified source of funds, both in terms of the availability of sources of funds and in terms of the distribution of payment terms for obligations. they must also maintain an adequate level of liquid assets. internal control is the main tool in determining whether the bank's activities are carefully conducted in accordance with the policy and strategy developed by the bank board. internal control should also ensure that there is complete information on assets in international operations and that liabilities are under control, and that management is able to assess, control and manage the risks of banking activities. the activity of banks is regulated by a wide range of banking laws. therefore, banks should develop adequate measures to comply with them. violation of the established requirements can damage the reputation of the bank and make it an object of sanctions. control involves gathering and analyzing information. this can be done locally or remotely. in some countries, on-site inspection is carried out by inspectors, in other countries by qualified external auditors, and in the third type of countries, a mixed system of on-site inspection and cooperation between supervisory authorities and external bodies is adopted. analysis of reports provided by internal and external auditors remains an integral part of both on-site and remote monitoring. during the current supervision, it is necessary to review from time to time the various factors that are focused on during the licensing process. banks regularly submit information for analysis to the banking supervisory body, and the supervisory bodies regularly discuss all important issues of their activities with the banks. bank supervisors should also have the tools to collect, evaluate and analyze financial reports and statistical information coming from banks individually and collectively. the reports submitted can be used to verify compliance with prudential requirements, such as capital adequacy requirements or norms for lending to individual borrowers. remote monitoring often helps to identify potential problems, especially in the periods between on-site inspections, which in turn allows for early detection of problems. based on the experience of foreign countries, the following tasks should be solved in order to further develop the banking system in the republic: building a strong information system and entering information about creditors and debtors of banks and their shareholders into its database; expanding the establishment of joint banks under the guarantee of the government, directing at least half of the resources of these banks as investments to the economy of the republic of uzbekistan; support for consolidation of assets of the banking system, capitalization of commercial banks, increase of their capital; american journal of business management, economics and banking volume 20 january, 2024 p a g e | 67 www.americanjournal.org activation of the organization of financial and industrial groups using mergers, mergers, as well as changes of owners; setting strict standards of financial and economic activity for regional commercial banks. the implementation of the above-mentioned tasks allows to coordinate the activities of the banking system with the developing market relations in the economy and society in general. in the conditions of uzbekistan, management problems in the field of traditional banking services include lending to small businesses, eliminating defaults, and mastering computer technology. often, small businesses cannot take out loans and repay them, because the funds are frozen in raw materials and finished products in warehouses. overdue debts are growing. banks, trying to avoid the application of sanctions by the central bank of the republic of uzbekistan, formalize the nonrepayment of loans and the extension of credit contracts. the growth of overdue debts, in this case, reflects the emission of credit and has a direct impact on the increase in inflationary tension. the structure of the credit network in the republic is inefficient. most of the loans are given to enterprises with unknown industry specialization, that is, most of them are small enterprises engaged in trade-intermediary activities. only a third of loans are directed to industry and agriculture. the share of long-term loans in the total amount of loans is very small (5%). regardless of the form of ownership, the burden of covering the lack of working capital of enterprises and organizations fell on commercial banks. non-repayment of loans by small enterprises brought some of them to the brink of bankruptcy. in order to solve this problem of bank management, firstly, mastering the activity of checking the solvency of customers from a constantly updated information base, secondly, issuing medium and long-term loans only after the evaluation of business plans by experts, and thirdly, guaranteeing loans for small enterprises. it is necessary to establish a small business agency. basically, benefits should be given to banks lending to agricultural producers in terms of reducing the amount of profit tax and allocations to the funds established by the central bank. the finances of the agricultural enterprises of uzbekistan are organized in such a way that the farm's own funds cover only the minimum need for material resources. this increases their need for debt. the increase in the price of industrial products for the countryside further increased the sector's need for credit. in this case, compensation for the reduction of interest rates for the given loans should be carried out at the expense of the republican budget. if the amount of reduced rates of credit commercial banks will be forced to increase the payment for the loan. funds to compensate for reduced interest rates for productive agricultural producers should be provided in the state budget. also, it is advisable to strengthen the control of the state and the bank that the entrepreneur maintains the "minimum of his investment". as soon as its size decreases, the enterprise is declared bankrupt and ceases to operate. this ensures that the "liquidation" tax is paid and the loans are repaid to the creditors. one of the problems of bank management is that the consideration of mutual claims between partners through banks requires guarantees from the central bank for commercial banks. otherwise, no commercial bank will lend to a customer who is "sitting in the file cabinet". here, only the central bank can assume the role of guarantor for the implementation of accounting for the compensation of the debit balance. having loans, the bank is interested in the increase in the price of its shares through intermediaries, thereby attracting credit resources not to production, but to stock exchange operations. the charter capital of a commercial bank serves as a guarantee of the bank's obligations and solvency. if it depends on the stock market, then the solvency of the joint-stock bank american journal of business management, economics and banking volume 20 january, 2024 p a g e | 68 www.americanjournal.org depends on the state of the stock market. depreciation in the value of bank stocks can lead to their insolvency and customers to be robbed. therefore, in our opinion, the stock and banking markets should be legally separated. demarcation of the bank's policy regarding short-term and long-term loans implies clarification of the procedure for reflecting loan payments in the firm's financial results. the high point of interest on short-term loans used in the sphere of circulation can be determined according to the principle of "inflation rate increase (plus) 3 percent". long-term investments have another principle that determines the upper limit in cases where the interest rate for the loan is known: under the conditions of "profit (minus) loan interest", a part of the loan interest is included in the cost of the products of enterprises within the limit of the central bank's calculation rate, that is, enterprises pay the main part of the payment for loans to consumers. will fall on the shoulders of . however, this leads to a chain of defaults that require centralized credit to arrange settlements between businesses. it should be noted that the basis of modern bank management is the optimization of the creation of banking products and increasing the attractiveness of services for customers. for these purposes, the bank needs electronic data processing technology. bank management is also related to providing services to commodity, stock, and currency exchanges, financing their infrastructure, and establishing settlement networks. it is useful for the bank to lend stock exchange operations, because here the credit resources turn at a high speed, bringing high dividends. therefore, the merger of stock exchanges with banks into financial holding companies will be of great benefit. in general, it is the most common interpretation of bank management at the moment, and on the one hand, it is the interpretation that implies the separation of problems related to the organization and management of economic processes under the authority of the bank, and on the other hand, the problems related to the organization and management of the bank team. along with the main areas of bank management, its most important areas are also distinguished. first, strategic planning, with the help of which a promising banking policy is developed. in this case, the development of the commercial bank development concept, the determination of tactical tasks and specific measures for their implementation are important components of planning. secondly, asset management, with the help of which the bank's policy for the intended period is directly implemented. asset management is primarily aimed at maintaining the liquidity of the bank's balance sheet and ensuring its profitable operation. thirdly, the management of liabilities shows the direction of the management that does not allow the bank to have non-profitable funds (with the exception of mandatory reserves). fourth, the management of the bank's own funds, which has a special importance for ensuring its liquidity and solvency. fifth, the profitability management of the bank's operation implies the control over the total income and expenses, the analysis of the dynamics of the biggest expenses on the funds involved and the biggest incomes seen from lending and investments. sixth, risk management in banking, it is often called risk management. with the help of this direction of management, it will be possible to know the possible situations of risk, to estimate the extent of the expected damages and to find methods of warning or sources of their compensation. seventh, the bank management system includes personnel management. in this regard, it is necessary to "carefully develop" the entire system of management, in particular, decision-making, responsibility, organization of control, management's relations with subordinates, remuneration, selfamerican journal of business management, economics and banking volume 20 january, 2024 p a g e | 69 www.americanjournal.org evaluation of this management, training of managerial personnel, etc. this approach to bank management is a product of the historical development of management and banking. references 1. decree of the president of the republic of uzbekistan dated september 21, 2018 no. pf-5544 "on approval of the strategy for innovative development of the republic of uzbekistan in 2019-2021" 2. rodionova v.m., fedatova i.a., financial stability of an enterprise in conditions of inflation m; publishing house prespektiva 2005 b-156 3. kasimova m., shamsiev a. the role of banks in ensuring the stability of our economy. //market, money and credit. 2006, no. 6. 4. rasulov t. development of money market in uzbekistan. //market, money and credit. 2006,no. 2. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 24 www.americanjournal.org change management and employee performance of health workers in rivers state isokariari, orusoso waite lawson department of management university of port harcourt business school eke, haniel okorafor (ph.d) department of marketing university of port harcourt haniel.eke@uniport.edu.ng a b s t r a c t k e y w o r d s employee performance and adapting to change was the topic examined. participants in this study are employed by one of the 346 primary healthcare (phc) centres found in one of the 23 study lgas. from the 23 lgas in the state, 12 were chosen at random using multi-stage sampling; three from each senatorial district. then, in each of the 12 lgas, four primary health facilities were chosen at random. then, from among the chosen phcs, health workers from various cadres were randomly selected using stratified selection. from each of the forty-eight (48) institutions, a random sample of 96 community health extension workers (chews), 96 community health officers (chos), 96 nurses/midwives, and 48 doctors were taken. a total of 336 people were randomly selected for this analysis. this research was carried out using a descriptive cross-sectional methodology. in order to accomplish the goals of the study, five hypotheses were proposed and tested at the 0.05 level of confidence. descriptive statistics (mean) were employed to examine the data, while the spearman rank correlation coefficient was used to evaluate the hypotheses. health workers in rivers state were found to benefit substantially from change management strategies like change communication and stakeholder engagement. effective change communication techniques should be prioritised by the health care management board in order to foster a good and supportive work environment in which people may thrive despite change. change management, employee performance, change communication, stakeholder management, work quality, employee productivity introduction company goals cannot be achieved without employee contributions. company employees are its most precious resource and can have positive and negative consequences. modern organisations must advocate for employee performance improvements in response to unavoidable external developments. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 25 www.americanjournal.org change has been central to science and business. there is no single definition of change, but change management draws on several social science fields and traditions in its theory and practise (burnes, 2014). change is a combination of acts that propels an organisation. a "change management" process, tools, and practises are needed to implement a change and achieve the desired business impact. organisational tools for change management can help people adapt and implement change. change management is essential for adapting to modern life's fast pace. change management involves systems, procedures, and people. change management requires project team and end-user training, familiarisation with new procedures, efficient communication, and task redesign (alshamlan & al-mudimigh, 2011). the healthcare industry evolves. every goal, plan, and endeavour must involve change management. change management can be applied to staff processes and to the people they serve by various healthcare organisations. academics, industry experts, and policymakers agree that effective change management is essential to any organization's success, but there is surprisingly little research on the reciprocal relationship, especially in developing countries like nigeria, where the business climate is fiercely competitive and constantly changing. despite universal agreement on the importance of change management to enterprises worldwide, this study examines how change management affects health care worker performance in nigeria due to the lack of current studies. as a result of these developments and widespread use of change management, employee performance should be on the upward. this is due to the fact that a shift in leadership can have a substantial impact on worker productivity, provided that the transition is handled well. this is due to the fact that, as sidikova (2011) points out, in any proposal for change, there will always be both proponents and detractors. there has been conflicting evidence from previous empirical studies on whether or not change management improves productivity among workers. however, it has been noted that the healthcare industry in port harcourt, rivers state, is suffering from low levels of staff performance. their work quality and efficiency as a company are clear indicators of this. is there any explanation for this strange occurrence? based on lewin's change management model and the uncertainty management theory (barney, 1991), we hypothesise that effective change management will have a positive impact on the productivity of health care employees in rivers state. stakeholder involvement and change communication are two change management strategies that may help businesses succeed. our focus is on healthcare employees in port harcourt, rivers state, and we want to know how well change management affects their productivity on the job. aim and objectives of study the purpose of this research is to measure the degree to which health care personnel in port harcourt, rivers state, believe that there is a connection between change management and performance. there were a few goals that this research hit on directly. (i) assess the extent of connection between change communication and work quality of health care workers in rivers state. (ii) ascertain the connection between change communication and employee productivity of health care workers in rivers state. (iii)examine the connection between stakeholder engagement and work quality of health care workers in rivers state. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 26 www.americanjournal.org (iv) examine the extent of connection between stakeholder engagement and employee productivity of health care workers in rivers state. literature review theoretical background two theories underpin this study which includes uncertainty management theory and lewin's change management model. uncertainty management theory: uncertainty management theory served as the theoretical framework for this investigation into the impact of organisational change on employee productivity, while the lewin's change management model served as the explanatory frameworks. organisational upheaval and the stress that comes from erratic outcomes might put employees at risk and threaten their financial security (terry et al., 2001). when a new piece of technology, product, or organisational structure is introduced, existing staff members may find themselves saddled with additional responsibilities. whether or not this new position is a good fit for the worker is a major source of anxiety, stress, and openness on the workplace (carnall, 2003). a sense of loss is fundamental to the passionate mood brought on by transition. in the preliminary phases, when nothing is considered about the change activity, people learn as little as possible about the promised benefits. in some cases, only the knowledge of intermittency can be relied upon. the theory of positive change orientation is laid out by van den bos (2001). employees' reactions to change and the effects of that change are enhanced when there is less ambiguity, as shown by research by rafferty and gryphon (2006) and lind and van den bos (2002). change self-efficacy is derived from these predictors of the latent positive change orientation construct (jimmieson, terry, & callan, 2004). high levels of change-related self-efficacy in the workplace indicate that workers have confidence in their own abilities to adapt to new circumstances and continue performing well throughout the transition process (jimmieson et al., 2004). a specific connection between self-efficacy and threat appraisal is explained by ozer and bandura, who point out that threat is not a property of situations per se but rather a relational property regarding the fit between perceived coping abilities and potentially harmful aspects of the environment. those who have faith in their own ability to fend off danger are less likely to entertain frightening thoughts in response to actual or perceived threats. lewin’s change management model kurt lewin's studies of collective action led to the development of a method for orchestrating widespread organisational transformation. lewin considered group behaviour to be an important area of study. people's actions seemed to vary depending on the group he was observing them in, he realised. as a result, he was able to explain that members of a group may have diverse motivations for joining, but if they are working towards the same goal, they are more likely to work together to achieve it. to prevent the group's behaviour from reverting to its previous level, he insisted, it needed to be altered. burnes (2009), in support of lewin's theory, argued that "only by resolving social conflict, whether it be religious, racial, marital, or industrial," the human condition could be improved. lewin's theories were founded on the idea that individuals might gain insight into and reform their perspectives on how to address social conflict via deliberate, instructional change. the three-stage process model for bringing about change is based on lewin's research. initiators of change inside an organisation often american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 27 www.americanjournal.org employ many tactics from the aforementioned three-stage model (branch, 2002) to bring about the desired transformation. unfreezing, starting the change (moving), and refreezing are the three stages outlined by harper (2001). organisational change might involve making adjustments to the people working there (their skills, characteristics, mindsets, and long-term behaviour) with an eye on achieving authoritative change; adjusting the organization's various hierarchical structures and frameworks (compensation plans, communication channels, and work schedules); or implementing new policies and procedures. directly altering the ambiance or relational style of the organisation, including how often people interact, how conflict is managed, and how decisions are made. lewin's theory focused on how elements like dependency and need play out between partners. this meant that the various sections and subsections of the organisation were able to rely on one another to carry out their duties. in addition, the relative importance of the various departments within the company determined the extent of the dependence. however, a substantial limitation of this model is that it presupposes organisations function best in predictable circumstances and can progress sequentially from one stable state to the next. this means that the model is unlikely to be useful in more chaotic business settings. concept of change management according to ecklies (2011), change management can plan and improve an organization's performance. change initiatives, unlike business as usual, attempt to increase individual and team performance to stay competitive. according to jones (2014), "change management" is the process through which an organisation optimises its internal processes to reach its goal. the author claims that organisations need change management to maintain competitive edge and increase productivity. change management requires a company's adaptability, according to osisioma (2014). some people are constantly resistant to change. when the operation's goal and beneficiaries are unknown, people are less willing to change their successful methods. people's reluctance to change is partly due to future dread. consistence comes from the need to feel secure. however, scepticism can significantly lower productivity. numerous studies show that two-thirds of big reform projects fail. thus, changing a company's culture, structures, or processes is dangerous and may backfire. much thought has gone into the transition, which will be constantly monitored and controlled. managing change. executive alignment, communication, stakeholder engagement, change impact, readiness, and training are common change management steps. the research will focus on stakeholder participation and communication. change management requires adjusting how you discuss and spread news of organisational changes. change communication can help employees adapt to organisational changes. due to the constant expansion and integration of new ideas in the workplace, professionals in all professions must be able to communicate effectively during transitions. change communication is important, and we give tips for strengthening internal transition messaging. stakeholder engagement relies heavily on establishing and maintaining connections with relevant parties. keeping individuals motivated and committed throughout a change initiative's planned and implemented project or programme is also part of change management. you can learn a lot from their opinions on the success or failure of the change, both before and after it is implemented. customers will be more invested and loyal if they are consulted early on in the process. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 28 www.americanjournal.org employee performance company success depends on employee productivity before, during, and after change management. positive responses to changes affect how workers behave during the transition. learning more about the topic makes workers fear change. they always choose safe careers. we must emphasise that employees are not noticing a change. the situation is unfamiliar and out of the comfort zone. protection and bribery were guaranteed. this produces mental and emotional turmoil that affects output. as workers "scrabble" to cope with the change, workplace morale declines (fedor, 2009). workers' frequent job stress is the obstacle (stringer, 2007). change communication and employee performance effective communication during organisational transformation helps employees cope with uncertainty (lewis & sahay, 2018). this is because sensemaking includes collecting, analysing, and assessing data. scholars advised firms to inform employees on the need for change, the process of change, and the consequences of change to overcome resistance, eliminate ambiguity, and help employees accept change (elving, 2005). this communication should be regular, authentic, and optimistic, disseminating important data, eliciting answers, and fostering buy-in for behaviour change while emphasising its importance and timeframe (lewis & sahay, 2018). scholars have underlined the importance of honest communication during the transition. instead of a top-down information flow, organisations should involve people in change decision-making (lewis & russ, 2012). in conclusion, informational transparency emphasises firms' efforts to provide employees with accurate, substantial, and relevant information. high-quality information like this can improve internal communications and prevent misconceptions (rawlins, 2008). it's different from telling workers everything (yue et al., 2019), therefore informational transparency is needed. businesses must inform employees of the shift's rationale, implementation, and effects on their daily lives. however, releasing information may overburden workers with superfluous or redundant information (rawlins, 2008). this study examines how open communication in businesses affects employees' ability to adjust to rapid policy or strategy changes, building on earlier studies. stakeholder engagement and employee performance stakeholder management, as outlined by ad-esse consulting (2008), entails the subsequent steps: the first step is to identify all stakeholders; the second is to classify them according to interest and influence; the third is to consider whether they are positive or negative; the fourth is to define the engagement or communication scope for each stakeholder; the fifth is to create a plan for managing each stakeholder, including measures of success; the seventh is to implement the plan; and the eighth is to evaluate the plan's effectiveness and make any necessary adjustments. only by learning about and empathising with your stakeholders can you hope to manage them well. in order to manage stakeholders efficiently, they are sorted into groups based on a variety of criteria. adesse consultancy (2008) adds that classifying stakeholders as a starting point for change management planning is a good practise. according to mwikuyu (2009), one effective approach is to “please those with a high interest but low influence; interact with and inform those with a high interest and a high influence; keep those with a high influence but low interest up to date but with simple messages; and communicate clearly with those with a low interest and a low influence." (donaldson & preston, 1995). management needs to understand the american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 29 www.americanjournal.org different ways in which the organization's actions and decisions affect its stakeholders (ad-esse consulting, 2008) in order to devise strategies that are mutually beneficial. figure 1.1: operational framework on the connection betwixt change management and employee performance of health workers in rivers state source: adopted from shaw (2018), cecilie (2008), bakar (2018) and basit (2017) hence we state our null hypothesis thus: ho1: there is no substantial connection between change communication and work quality of health workers in rivers state. ho2: there is no substantial connection between change communication and employee productivity of health workers in rivers state. ho3: there is no substantial connection between stakeholder engagement and work quality of health workers in rivers state. ho4: there is no substantial connection between stakeholder engagement and employee productivity of health workers in rivers state. empirical review osei-bonsu (2014) conducted research into three aspects of change management: employee participation, the effect of change management on job satisfaction, and employee outlook following an organization-wide shift. one hundred and forty people were selected at random and given a questionnaire they had created themselves, which included both open-ended and closed-ended questions. the data was analysed using descriptive statistics. according to the results, the employees' contribution to the process consisted mostly of providing relevant information. it was also found that employees' happiness on the workplace improved as a result of the shift. positive sentiments were seen among workers following the implementation of the reform. kamugisha's (2013) research on the outcomes of change management in organisations: a case study of national university of rwanda (nur) set out to answer the question, "what are the outcomes of change management at nur?" according to the results of this research, there have been shifts in the administration of academic departments. administrative personnel are now expected to have a bachelor's degree commensurate with the roles they hold, signalling a shift in both expectations and results. there were effects on human resources, such as layoffs, outsourcing, and hiring to fill new positions, as a result of these alterations. the increased internet bandwidth made possible by organizational structure change management employee performance stakeholder engagement change communication work quality employee productivity american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 30 www.americanjournal.org technological advancements has had a profound effect on the academic and administrative functions of the university. a study by al-jaradat, nagresh, al-shegran, and jadellah (2013) used a case study of jordanian university libraries to investigate the effect of change management on staff productivity. organisational shifts, technological advancements, and personal development were all discussed as potential sources of future change. in order to acquire the raw data, the researcher created a questionnaire, and after selecting a random sample of 220 people, they filled out the questionnaire. the research concluded that the university library's current organisational structure is inflexible and, as a result, is not well suited to the commercial needs of the library. this has resulted in overlapping authorities and responsibilities. the correlation coefficients for organisational structure change, technological change, and individual performance were 0.589, 0.648, and 0.711, respectively, suggesting a favourable association between the three. according to the findings, a well-balanced effort to enhance employee performance, which in turn reflects the quality of productivity, necessitates a focus on organisational structure, human relations, and technology to guarantee the success of the change programme. igwe et al. (2018) looked into the dedication of top management in industrial companies in south eastern nigeria to implementing change. two hundred and five (205) manufacturing enterprises that are paid-up members of the manufacturers association of nigeria (man) contributed to the data set. there were a total of 267 questionnaires sent out. the study used the chi-square (x) statistic and the pearson product moment correlation coefficient to determine that change management raises productivity and that there is a robust positive correlation between the dedication of upper and lower management and the success of change implementation in the sampled businesses. as a result, the authors argued that company heads and upper management should facilitate a more welcoming environment for change management. methodology study area: located in nigeria's south-south geopolitical zone, rivers state is one of the country's six states. an estimated 5.18 million people call the state home as of the 2006 census, with representation from roughly 20 different cultural backgrounds. port harcourt, the nation's capital, is home to a large and varied population of people from all walks of life. there are 346 primary health facilities in the three (3) senatorial districts of rivers state, as reported by the rivers state primary health care management board (2022). there are 346 primary healthcare clinics (phcs) located in each of the 23 lgas, and each of these clinics is staffed by a physician. the research was conducted in 12 of the state's 23 lgas at random. then, in each of the 12 local government areas (omuma, ogu bolo, ikwerre, portharcourt, opobo, tai, andoni, oyigbo, asaritoru, abua/odual, degema, akuku-toru, and ahoada-west), four primary health facilities were chosen at random. study design: a descriptive cross-sectional design was used in conducting this study. sampling and sampling technique: everyone who works in primary health care in the state of rivers. medical professionals, nurses, midwives, chews, and chos all fell under this category. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 31 www.americanjournal.org in this research, we adopted a multi-stage sampling strategy. starting with a frame of all possible local government areas (lgas), four were chosen at random from each of rivers state's three senatorial districts (for a grand total of nine). the second phase involved selecting forty-eight (48) primary healthcare centres (phcs) at random from a sampling frame of phcs in each senatorial district, with an even distribution of the sample size among the selected phcs (after a pre survey mapping revealed the existing staff strength per facility). health workers were then picked from each of the phcs using stratified sampling proportional to the size of the various cadres of health care professionals. members of the chew, cho, midwife, and medical doctor cadres made up these groups. then, from the nominal rolls of the chosen facilities, two (2) chews, two (2) chos, and four (4) midwives were recruited; and from a list of four (4) phc facilities in each of the 12 lgas, two (1) doctors were randomly picked by balloting. forty-eight (48) facilities were randomly chosen, and from those, a total of ninety-six (96) chews, 96 chos, 96 nurses/midwives, and 48 mds were taken as a representative sample. a total of 336 people were randomly selected for this analysis. study instruments: this study used the quantitative method of data collection using semi structured questionnaires. validity and reliability test due to the quantitative nature of the study, a structured questionnaire was used to collect information from a sample of 336 healthcare workers. below is the report of the validity and reliability test. table 1: properties of the measurement instruments. constructs/indicators factors loading(λ) λ2 ave α cr change communication (cc) 0.79 0.88 0.92 cc1 cc2 cc3 0.912 0.882 0.878 0.832 0.778 0.771 stakeholder management(sm) 0.76 0.83 0.90 sm1 sm2 sm3 0.916 0.872 0.819 0.839 0.760 0.671 work quality(wq) 0.81 0.89 0.93 wq1 wq2 wq3 0.909 0.891 0.899 0.826 0.794 0.808 employee productivity (ep) 0.78 0.86 0.94 ep1 ep2 ep3 0.878 0.908 0.921 0.814 0.799 0.804 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 32 www.americanjournal.org table 1 displays the outcomes of the measuring model. all of the results reveal that the outside loadings are substantial and more than 0.7. avkiran and ringle (2018) state that an outside loading threshold of 0.7 should be used. additionally, cronbach alpha and composite reliability have been used to establish reliability; these methods indicate that a value of 0.6 is the bare minimum for reliability, although values above 0.7 are preferable. when the cutoff is taken into account, it is observed that all latent constructs are credible, with cronbach alpha and composite reliability scores all exceeding 0.7. moreover, ave has been employed since it illustrates the interconnectedness of the latent variables, which is necessary for establishing the convergent validity of the latent constructs. according to latan and noonan (2017), the ave threshold is set at 0.5, hence any value in table 1 for a latent construct in this study more than 0.5 is considered legitimate. results and discussion table 2: socio-demographic data variables frequency (n=336) percentages age 20-30 years 46 14.0 31-40 years 123 36.0 41-50 years 115 34.0 51 years and above 52 16.0 gender male 124 37.0 female 212 63.0 religion christian 336 100.0 educational level tertiary 317 94.0 others 19 6.0 work experience 0-5 years 74 12.0 6-10 years 126 39.0 11-15 years 99 36.0 16-25 years 37 13.0 table 1 shows the socio-demographic data of respondents. the results showed that 46 (14%) were aged 20-30 years, 123(36%) 31-40 years, 115(34%) 41-50 years and 52(16%) 51 years and above. for gender, 124(37%) were males while 212(63%) were females. all of the respondents indicated christian religion. 317(94%) had tertiary education and 19(6%) had other forms of education. for work experience, 74(12%) had 0-5 years of experience, 126(39%) had 6-10 years of experience, 99(36%) 1115 years of experience and 37(13%), 16-25 years of experience. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 33 www.americanjournal.org table 3: occupational characteristics of the respondents variable frequency (n=336) percent cadre senior staff (>gl 7) junior staff (<gl 7) 277 59 82% 18% profession doctor nurse chew cho 48 96 96 96 13% 29% 29% 29% duration of work at current facility (years) 1-6 7-12 13-18 19-24 25-30 129 86 52 61 8 38% 26% 16% 18% 2% most of the respondents 277 (82.0%) were in the senior staff cadre. there is equal proportions of chews, chos and nurses [96 (29%)] and 48 (13%) were doctors. majority 129 (38%) had worked for 1 6 years in their current facility and 86 (26%) had worked for 7 – 12 years, 52 (16%) had worked 13-18 years, 61(18%) had worked for 19-24 years while 8 (2%) had worked for 25-30years. analysis of data and discussion of findings spearman rank correlation coefficient and partial correlation were used for the hypotheses testing. the results of the hypotheses test were interpreted accordingly. ho1: there is no substantial connection between change communication and work quality of health workers in rivers state. table 4: evaluation of the connection between change communication and work quality of health workers in rivers state. correlations ccmai n wqmain spearman's rho ccmain correlation coefficient 1.000 .756** sig. (2-tailed) . .000 n 336 336 wqmain correlation coefficient .756** 1.000 sig. (2-tailed) .000 . n 336 336 **. correlation is substantial at the 0.05 level (2-tailed). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 34 www.americanjournal.org table 3 above reveals a spearman rank correlation coefficient of 0.756 and probability value of 0.000. it was suggested by the outcome that a positive and solid impact/substantial connection exist between change communication and work quality of health workers in rivers state. therefore, we reject the null hypothesis and accept the alternate hypothesis, because the pv (0.000) ˂0.05 level of significance. the above result further infers that change communication can influence work quality of health workers in rivers state. ho2: there is no substantial connection between change communication and employee performance of health workers in rivers state. table 5: evaluation of the connection between change communication and employee performance of health workers in rivers state. correlations ccmai n epmain spearman's rho ccmain correlation coefficient 1.000 .841** sig. (2-tailed) . .000 n 336 336 epmain correlation coefficient .841** 1.000 sig. (2-tailed) .000 . n 336 336 **. correlation is substantial at the 0.05 level (2-tailed). table 4 above reveals a spearman rank correlation coefficient of 0.841 and probability value of 0.000. it was signified by the outcome that there exist a reasonable and positive impact/noteworthy connection between change communication and employee productivity of health workers in rivers state. therefore, we reject the null hypothesis and accept the alternate hypothesis, because the pv (0.000) ˂0.05 level of significance. change communication is therefore, substantially connected with the employee productivity of health workers in rivers state. ho3: there is no substantial connection between stakeholder engagement and work quality of health workers in rivers state. table 6: correlation analysis showing the connection between stakeholder engagement and work quality correlations semain wqmain spearman's rho semain correlation coefficient 1.000 .695** sig. (2-tailed) . .000 n 336 336 wqmain correlation coefficient .695** 1.000 sig. (2-tailed) .000 . n 336 336 **. correlation is substantial at the 0.05 level (2-tailed). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 35 www.americanjournal.org table 5 above reveals a spearman rank correlation coefficient of 0.695 and probability value of 0.000. this outcome signifies that there exist a reasonable and positive effect/noteworthy connection betwixt stakeholder engagement and work quality of health workers in rivers state. therefore, we reject the null hypothesis and accept the alternate hypothesis, because the pv (0.000) ˂0.05 level of significance. it was suggested from the above outcome that stakeholder engagement is substantially associated with the work quality of health workers in rivers state. ho4: there is no substantial connection between stakeholder engagement and employee productivity of health workers in rivers state. table 7: correlation analysis showing the connection between stakeholder engagement and employee productivity correlations semain epmain spearman's rho semain correlation coefficient 1.000 .730** sig. (2-tailed) . .000 n 336 336 epmain correlation coefficient .730** 1.000 sig. (2-tailed) .000 . n 336 336 **. correlation is substantial at the 0.05 level (2-tailed). according to the fourth hypothesis, there is little to no correlation between stakeholder participation and productivity in the workplace. a statistical test of the null hypothesis at the 0.05 level of significance found a significant positive link between stakeholder engagement and staff productivity (r = 0.730, p 0.000). therefore, h0 was found to be false, whereas h1 was found to be true. these findings lend credence to yilmaz and gunel's (2008) argument. conclusion and recommendations the study's overarching goal was to discover how effective change management influences the productivity of health care employees in rivers state. there was a consensus that change management improved the productivity of health care personnel in rivers state. specific findings based on the aims are as follows: through establishing a substantial link between communication and employee performance, the study found that change communication poses a danger to job quality and employee productivity. when an organisation undergoes a period of transition, it is crucial that all employees understand how they may contribute to the success of the new direction. employees are more likely to adjust to the change and perform at their best when they are informed, engaged, and feel supported throughout the transition. an organization's morale, productivity, and effectiveness can all benefit from open and honest communication between management and workers. in addition, the research found that the work quality and productivity of health sector personnel in rivers state can be positively influenced by stakeholder participation in the case of organisational transformation. organisations establish a climate that encourages cooperation, mutual understanding, and dedication to the desired goals when they involve employees and other stakeholders in the change process from the start. stakeholders that are actively involved in a change experience a surge in intrinsic motivation, team spirit, and productivity. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 36 www.americanjournal.org it is therefore recommended that i. effective change communication techniques should be prioritised by the health care management board in order to foster a good and supportive work environment in which people may thrive despite change. ii. businesses need to examine their current structure and how well it supports their change management objectives. iii. there needs to be training and assistance, recognition and celebration of successes, encouragement of teamwork and collaboration, close monitoring of performance, and regular review of staff in rivers state's healthcare administration. references 1. ad-esse consulting ltd. 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(2019). bridging transformational leadership, transparent communication, and employee openness to change: the mediating role of trust. public relations review, 45(3), article 101779. http://www.wiley.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 109 www.americanjournal.org priority issues of child education in the family sidikova zarema rakhmonberdievna "oriental" university faculty of "pedogy" direction of pedogogy-psychology 3rd student e-mail: zaremasidikovna1@gmail.com phone: +99850198205 a b s t r a c t k e y w o r d s as we all know, in our country, a unique national upbringing has begun to take shape in families. family moral education is one of the integral components of this process. young parents need to conduct targeted pedagogical-psychological conversations with their children, it is necessary and necessary to pay attention to every word of the child. "you don't know anyway" and we begin to influence the child's psyche. we need to know that proper education and upbringing in the family should be attentive to every word of the children of the growing age and listen patiently in the era of global change. we parents make a great contribution to the fact that the child grows up to be responsible, intelligent, polite and courageous. family, child, upbringing, education, society, country, skill, skill, neighborhood, environment. introduction i started working in 2000 when i was 18 years old. i loved my profession very much. i was very interested. even now, i am engaged in crafting. after a few years, my own life experiences led me to enter the field of pedagogy and psychology. we parents must know what is right and what is wrong in raising a child. i tried never to neglect my children. i had a daughter and a son. my daughter robiya was born on may 29, 2007. for the first time, there was no happier mother than me. she had a special character, rarely spoke, never spoke outside of school or the neighborhood, she was a heavy-handed girl. my son was very curious, everything object, animal, insect, everything was very interesting for him. my son and daughter both had two different personalities. rustamjon was born on may 26, 2009. the second time i was a happy mother. i think every mother must have felt the happiness of motherhood. when my son was born, a radical change took place in my life. i was sitting at home, sewing when the order came. my lifestyle has not been easy; i faced many difficulties. i will talk about my married life in my next articles. children grow up quickly and become adults. we parents don't even notice it. when they grow up, we wonder where we went wrong. why american journal of business management, economics and banking volume 22 march 2024 p a g e | 110 www.americanjournal.org am i saying this so that mothers like me do not regret it one day. i want you to know that children play a very important role in our lives and that we are role models for them. my child grew up in this way as we told him to "keep quiet, don't talk, don't interfere" he became more and more alienated, as he joined his people. a child begins to grow up like a [scanner]. one of those days, my more playful son liked to give me whatever he could get his hands on. he did not forget to make me happy by preparing some kind of surprises every day. my son was very kind, he always had a smile on his face, and if he made me happy with something, he would be very happy himself. neither the flower nor the grass that grew in the yard was left behind. so, we had a happy mother and child. i can say that for sure. he used to tell me all sorts of poems whether he knew it or not. we were very happy. but his inquisitive nature worried me a lot. he would bury me with questions about how every animal was created, how a person was created, what god is like, what heaven and hell are, what the world is like, and what the cemetery means. that's why i say that we should pay attention to every word of the child. i would answer as much as i needed, but there were times when i couldn't. on april 29, 2021, my neighbor's 18-year-old son committed suicide. my son had seen this process and after listening to the talk of the men and women of this place he became interested. he heard women and men say that the dead child is from heaven and that he is old. so he came to the idea that if he dies and commits suicide, he will be in heaven. 11 days later, my son left this world. he committed suicide on 05.05.2021 at the age of 11. he asked his neighbors and friends at school if the neighbor went to heaven. i was told this late. he even asked me did the dead neighbor go to heaven? i looked at my son with some anxiety my son, you can't talk about a dead person. i replied that allah knows best. now i am telling it like a fairy tale, but the world was dark to my eyes. on the day when this terrible incident happened, i was going out on the street with my chores. my son accompanied me wherever i went, and i never wanted to leave him at home. on that day, even if i said, "come on, my son, you will come with me," he said, "i will stay at home and do my lessons." not long after that, the neighbor's daughter-in-law called me and said, come quickly, your son has committed suicide. even though 11 days have passed since i was in a hurry, i answered that it was not my son, but the neighbor's son. maybe mothers who have lost their children make me feel bad inside. i don't know how i got home, it was dark in front of me. the house looked like it was on fire, i couldn't enter through the gate and i called my son only my son. i used to shout, "where are you, rustamjon, my child?" my neighbors looked at me in surprise and did not know what to do. i looked at them in surprise and shouted, "what are you doing? the house is on fire." i don't know how the funeral went, i was very sad because my son left me. i was in a state of psychological depression. i was completely stuck at home, i didn't like the streets and people anymore, i was very sick. after 2 years, i entered the faculty of pedagogy and psychology and began to try to keep myself mentally upright. because my daughter started to follow me. that's why i had to stand. entering the field of psychology, i realized that we women play a very large role in the family. we need to work on ourselves in order to educate our children. every word of the child is important, we parents should not ignore it. conclusions and suggestions a person is covered with the first mother's love and affection in a family made of love. this affection is the place of education for the development of the human qualities of the child. therefore, the first goal of marriage is the continuation of violence. because the essence of the islamic family is the american journal of business management, economics and banking volume 22 march 2024 p a g e | 111 www.americanjournal.org essence of the views of fitrat, the actions that determine the height and honor of the nation in the family are primarily related to the chastity of the husband and wife. references 1. мустақиллик: изоҳли илмий-оммабоп луғат.-т., “шарқ”, 1998. 320 б. 115-бет. 2. иномова м. о. оилада болаларни маънавий-ахлоқий тарбиялашда миллий қадриятлардан фойдаланишнинг педагогик асослари: пед. фанл. докт. ...дисс. – т.: 1998. 34 бет. 3. маврулов а. маънавий баркамол инсон тарбияси. – т.: “ o’zbekiston”, 2008. – 11-12 бет. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 11 www.americanjournal.org the role of artificial intelligence and machine learning in digital banking technology hussein zaboon oleiwi al-karkh university of science, iraq – baghdad hussein.zaboon@kus.edu.iq a b s t r a c t k e y w o r d s this research paper aims to know modern technology and digital transformation and use it to attract and attract new skills and competencies to banks and train workers in the banking sector to use technology in order to facilitate services for customers and provide technological services that lead to attracting new customers. therefore, it was necessary to know what artificial intelligence is. and machine learning and modern technologies and how to train workers in the banking sectors and develop their competence and skills, as well as the opportunities and challenges presented by this technology in order to develop a proposed business model that helps overcome the obstacles and difficulty of attracting talent in the workplace at the present time, as well as relying appropriately on what is called competency planning and developing plans to train employees on this technology to raise the level of competencies in banks and thus provide better services to customers. a set of questions were prepared and directed in the form of a personal interview to the selected study sample of 50 employees from different banks in baghdad governorate. the data was analyzed, and it indicated the results of the study indicate that the percentage of males in the study sample compared to males is a large percentage of 70%. we see that females have more interest in development and use of modern technology, training and career development, and that training and learning increases loyalty and belonging to the banking institution. introduction the banking sector is considered a major party in any economy, as it works to facilitate the movement of money in a way that provides sufficient financing for various investments, in order to achieve economic development and increase its growth rates. on the other hand, the banking environment has witnessed during recent decades a kind of dynamism and complexity, and this is due to the waves of globalization and the acceleration of innovations, which has placed banks in various countries before many challenges to keep pace with the transformations taking place in order to maintain the market share in financial companies and expand further into new markets. many fields have emerged that are concerned, in different ways, with financial services and their development, such as financial american journal of business management, economics and banking volume 20 january, 2024 p a g e | 12 www.americanjournal.org technology and artificial intelligence. this is in order to move more towards simulating human intelligence, which is considered one of the most prominent technologies produced in the world, and which banks seek to adopt, in order to reduce operational costs, increase their performance, and get closer to customers. . 1−3 1.1research objective banks at the global level have begun to pay great attention to technology at the expense of developing their human resources, which has had a negative impact on their performance, since the use of technology alone does not result in any competitive advantage for the bank. rather, it is only an import of technology, unlike banks that improve the skills of their workers. through training and training, they provide more quality services and thus gain a competitive advantage and make them more innovative. therefore, banks today must pay attention to their human resources along with technology in order to meet the increasing requirements in the banking arena and in order to reach effective and distinguished management of human cadres in iraqi banks . . 4 1.2 the importance of the research since the technological development in banks has accelerated the pace of completing operations, it was necessary for iraqi banks to keep pace with this acceleration in the speed of processing and sending information, in addition to the ability to deliver service faster to customers anywhere in the world, and the speed and ease of electronic marketing of banking products by increasing banks interact with the information network on a large scale. the banking sector plays a major role in economic development, and in order for this to be achieved, the banking sector must play many roles as follows: . 5−8 1 focus and great and continuous interest in the future competencies and talents of human cadres in the egyptian banking sector, and exploiting technological development in the banking work environment to confront successive challenges, save time and effort, improve the quality of financial services provided, improve the image of iraqi banks, increase the customer base, and remove geographic obstacles . -2 technical and technological development represents a major source for feeding the various operations and activities of the egyptian banking system with information, which enables it to collect, store, classify, disseminate and benefit from information according to scientific and objective foundations. -3 this study came as a call to develop the capabilities, capabilities and skills of the human element in the egyptian banking sector to interact with developments and not wait to learn the results of the performance of others to imitate them, but rather to strive for leadership and learn about everything that is new, in order to achieve precedence, survival, growth and continuity in the conduct of its business. 4-this study enhances the performance efficiency of employees in the egyptian banking sector to be compatible with modern technology and the digital age, which reflects positively on the economic sector as a whole. this necessitates iraqi banks to strive towards innovation and innovation by opening new horizons for e-learning and developing new services using advanced methods, such as education. remotely, which ultimately improves the level of service provided to the community american journal of business management, economics and banking volume 20 january, 2024 p a g e | 13 www.americanjournal.org the importance of this research for the egyptian banking sector stems from the fact that it sheds light on the impact of optimal investment by iraqi banks in future talents, competencies and experiences in order to catch up with the train of tremendous technological developments in the banking work environment in an era whose variables have become greater than its constants on the performance of these banks, and as a result of the rapid technological developments in nowadays, it has become necessary for iraqi banks to qualify and train employees in the banking sector in their various activities in order to keep pace with developments and modernize their working methods. hence, the research gains and derives its importance because : ➢ it contributes to shedding light on the reality of iraqi banks’ use of technological and technological developments and the degree to which they have reached compared to the intense competition in international banks . ➢ it helps iraqi banks by highlighting the importance of qualifying and training the human element to benefit from the latest technologies, programs and applications in improving and developing new banking services for their current and future markets so that they exceed consumers’ expectations, improve their banking performance and increase their market share . ➢ it helps to clarify the picture of the advantages and risks of introducing technological development and the emergence of new roles and new jobs in the future . ➢ it helps iraqi banks in developing a map of future competencies (innovation creativity technical expertise knowledge behavior skills. the goal of this is to enable that employee to understand himself/herself better, and where career development efforts are directed and to conduct appropriate training for him/her) . 9 2. proposed methodology artificial intelligence (ai) is the process of programming a machine and adapting it to think, act, and interact in a way that mimics a human. the developers provide her with specific knowledge sources from which she can learn. therefore, the processes of linking information are successfully carried out through logical methods. this technology includes several applications, the most important of which are . 10 : • expert system • natural language processing nlp • speech recognition • machine visio 2.1 how can artificial intelligence help develop the work of the financial management department? 1. increase the accuracy of the results 2. increasing the level of efficiency of operations 3. cost saving mistakes that can be avoided using artificial intelligence in financial management artificial intelligence protects your business from some of the human errors that can occur while managing finances. the source of these errors are elements that are not present in the machine and are overpowered by humans. they are as follows : . 11−14 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 14 www.americanjournal.org 1entering inaccurate data: as a result of the employee's distraction or lack of concentration, he may make mistakes while working and enter incorrect data. this error may eventually appear in financial settlements. artificial intelligence prevents it from happening from the beginning, because it makes data entry automatic without the need for human intervention . 2performing incorrect calculations: this error may be a result of the previous error. whether you are using an excel spreadsheet or a software system, entering inaccurate data will eventually lead to incorrect calculations. the user can also apply incorrect mathematical principles that lead to the same results. if artificial intelligence is used, it ensures that the data and calculations for each process are correct to prevent errors. 3exaggerating or minimizing financial risks: a person is afflicted with bias in many situations, which sometimes affects his work. it supports one idea at the expense of another. this is what a financial analyst might fall into. although his job depends on facts and what the numbers indicate, he may be affected by external factors or personal convictions. for artificial intelligence, the situation is different, it analyzes data objectively because it is a machine without whims . 2.2 the most prominent companies that have applied artificial intelligence in financial management several companies have applied artificial intelligence in financial management, including those working in the field of financial services. the most prominent of these companies are : . 15 1paypal: supports digital transfers of payments. every money transfer has the potential to be a scam. so, paypal uses smart tools to detect fraud attempts early without losses. by monitoring user behaviors, activities that fall within suspicious patterns can easily be identified. paypal also uses machine learning techniques to improve acceptance rates for valid transactions. 2american express: as a global financial services company and credit card issuer, american express has implemented intelligent applications that detect fraud attempts and automate customer service. as for customer service, it provided an automated chat with which the customer can engage in a conversation and obtain comprehensive responses to his inquiries. it also converts the voice conversation into texts that the machine can understand and fulfills the customer’s request immediately. 3mastercard: mastercard has achieved an amazing feat using artificial intelligence. by keeping personal files of its customers and their activities, with the help of the machine, it has become easy to notice any differences in the activities of individuals and identify suspicious ones. it follows patterns in real time and determines which ones are safe through its readings of the customer’s previous transactions and data, such as geographical location, timing of the last transaction, etc . can a machine take the place of a human to manage financial operations 100%? what reality tells us is that it is definitely not, but there are always technological leaps that bring about changes that affect the future . 2.3 artificial intelligence technology in the field of banking contributes to several things, the most important of which are : . 16−18 1managing credit card accounts: providing advice to reject or cancel the cardholder’s credit application, evaluating applications to estimate the applicant’s eligibility for a credit card. 2anti-money laundering: adopting artificial intelligence systems that stop steps that make money that comes from illegal or unethical sources appear to be earned illegally; by adopting more american journal of business management, economics and banking volume 20 january, 2024 p a g e | 15 www.americanjournal.org flexible, accurate and fast systems with continuous innovations and improvements in the field of artificial intelligence . 3 chat bots that act as a customer service agent; it is characterized by advanced features to effectively deal with customer inquiries sent via electronic platforms. 4detecting fraud using data analysis techniques in the banking sector, which is the fico-falcon fraud assessment system, which relies on a neural network to deploy advanced artificial intelligence systems based on deep learning. 5create reports by collecting large amounts of data and putting them in the form of paragraphs that highlight the main points 6 review and evaluate loan applications submitted to banks 7financial planning to create an investment portfolio for investors 8financial analysis and planning to secure the financial resources necessary to market products 9review accounting budgets 10-a system for providing advice and counseling for long-term investments 11-better quality support across multiple channels. customers today expect banks to provide support services through all available channels, such as email; and the phone; and social media; and others, and here comes the importance of interactive voice assistance tools and chatbots. through which banks can adhere to their promises to their customers and enhance the quality of their services. 12-faster customer service and fewer disputes; customers usually deal with financial and banking matters impatiently. they need immediate support and will not be willing to wait even for a few minutes. fortunately, ai-powered communication can serve customers instantly without them having to wait a single second; in addition to avoiding any dispute that may arise from dissatisfied customers. interactive voice assistants and chatbots can support multiple customers simultaneously and instantly . 13-reducing employee attrition. every day, banking employees face many difficulties and challenges; most notable are frequent customer inquiries and urgent requirements. which leads to their exhaustion and draining their energy; which in turn reflects negatively on employee satisfaction and retention in the long term. but by automating certain aspects of customer service, banks can save their employees a lot of headaches; it enables them to focus on strategic and more complex tasks. artificial intelligence is also expected to contribute to preserving accumulated human expertise by transferring it to smart machines . 14-stronger data protection. data protection is undoubtedly of great importance in the world of banking. interestingly, artificial intelligence can offer a whole new level of protection. 15-artificial intelligence systems can also provide analyzes of historical data, real-time statistics, and accurate reports from all electronic systems, which supports the decision-making process and making solid and sound decisions. 2.4 the importance of artificial intelligence in achieving fundamental transformations and representing a positive negative impact on the presence of artificial intelligence applications is as follows: . 19 1developing the dynamism and accuracy of the future: adopting interactive artificial intelligence techniques in creating a more predictable and less creative work environment; through the use of a set of complex algorithms capable of dealing with a large amount of huge and disparate data and processing it in record time to predict financial and regulatory competitiveness guarantees. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 16 www.americanjournal.org 2reducing the cost of business: it is the most popular use for business institutions in that it affects the cost of business, which helps them achieve gains in the market, by introducing artificial intelligence applications in banks and brokerage to reduce costs; as banks work on ai data at the primary interface to facilitate customer identification and authentication to direct employees through chatbots, voice assistants and deep customer relationships; artificial intelligence is also being applied by banks within the functions of teenagers to detect operations in and thus leads to combating money laundering. 3necessity and expectations of current and prospective customers: artificial intelligence technologies for reactors are pivotal in creating high value for user data, which allows organizations to quickly adapt to the necessity and preferences of customers; which results from their loyalty; hence, increasing the market share and revenues of an establishment. through the use of a chatbot, data can be analyzed and understood in customer relationship management applications. thus their applications will be more efficient in managing customer information and providing customers with specific information. 4-dynamic optimization of deep business: artificial intelligence is prepared for more work through deep business software applications that provide organizations with visibility into how the company gets business done. 5-increasing investment promotion: public organizations can use; banks specifically use artificial intelligence technologies by using their smart systems to help find investment alternatives and opportunities to help in making investment decisions. 3. result discussion opinions of bankers and businessmen about the opportunities of artificial intelligence. considering that financial activities are a world and are integrated into many aspects of human interaction, the adoption of artificial intelligence can lead to the introduction of innovations within the industry. for this reason, startups and financial and banking institutions are offering new products and services based on artificial intelligence and financial technology. the following table (1) highlights the results of a survey of decision makers in the field of financial services on the use of artificial intelligence: study methodology: in this study, the descriptive approach was used to describe the study variables and analyze the relationship in order to achieve the objectives of the study. the descriptive analytical approach was used to identify the research hypotheses. the sample and sources of the study consist of 50 iraqi bank employees. the information necessary for the research was obtained, consisting of an axis that discusses the research hypothesis to confirm or deny it by developing a set of questions. the data was analyzed using the (spss) program, where analytical statistics are used, represented by calculating percentages and the mean. arithmetic and testing differences in the opinions of sample members who work in iraqi banks. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 17 www.americanjournal.org description of the sample’s responses to the research variables personal data table no. (1) shows the volume of artistic research according to gender diversity gender frequency ratio male 15 30% females 35 70% sum 50 100% we note that the number of females constitutes about twice the number of males from the size of the sample studied. the percentage of females from the size of the total sample reached 70%, while the size of the number of males reached 30% of the size of the total sample. figure no. (1) shows the size of the research sample according to the gender variable table no. (2) shows the size of the research sample according to the age variable age male ratio females ratio less than 30 years old 9 66% 7 20% from 36-42 years old 2 13% 14 40% from 42-47 years old 1 1% 8 23% more than 48 years 3 20% 6 17% the total 15 100% 35 100% through table no. (2) we note that the young group of iraqi bank employees represents the majority of the research sample. 35 15 gender american journal of business management, economics and banking volume 20 january, 2024 p a g e | 18 www.americanjournal.org figure no. (2) shows the size of the research sample according to the age variable table no. (3) shows the sample size according to the academic achievement variable educational level male ratio females ratio bachelor's degree or equivalent 5 33% 20 57% higher diploma 7 47% 11 31% master's 1 7% 2 6% ph.d. 2 13% 2 6% the total 15 100% 35 100% from table no. (3), we note that the percentage of females reached 57% of those holding a bachelor’s degree, while the number of males reached 33%. figure no. (3) shows the sample size according to the academic achievement variable . first: testing the normal distribution of the data (one sample kolmogorov-smirnov test) was relied upon to test the normal distribution of the data, and the results showed that the value of (asmp. sig. (2-tailed) is as shown in table (4), which means 0 2 4 6 8 10 12 14 9 2 1 3 7 14 8 6 age 0 5 10 15 20 5 7 1 2 20 11 2 2 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 19 www.americanjournal.org that there are no statistically significant differences between the distribution variable values and normal distribution . table no. (4) normal distribution of data n posterior 95% credible interval mode mean variance lower bound upper bound the age 50 1.2857 1.2857 .003 1.1858 1.3856 gender 50 2.2976 2.2976 .015 2.0594 2.5359 academic achievement 50 2.6071 2.6071 .017 2.3496 2.8647 from your point of view, banks must adopt a strategy for the digital transformation of banking services that enables them to benefit from technological development and maintain their market share. 50 2.5238 2.5238 .015 2.2814 2.7662 obtaining market share in the banking sector has become dependent on the extent of banks’ success in attracting and developing workers with the appropriate competencies to keep pace with developments in the digital age. 50 2.5595 2.5595 .018 2.2923 2.8267 digital transformation of banking activities creates more jobs than it destroys 50 2.7738 2.7738 .017 2.5200 3.0276 the human element is considered the most important asset of the institution and one of the most important components to enable the bank to digitally transform and keep pace with developments in the digital age 50 2.8690 2.8690 .024 2.5625 3.1756 serious steps must begin to be taken to digitally transform banking activities, even in the absence of a large segment of customers integrating into digital activities. 50 1.8214 1.8214 .020 1.5440 2.0989 fintech companies are competing with banks in providing financial services to customers. 50 2.9405 2.9405 .023 2.6405 3.2405 competition in the field of financial services has become dependent on the elements of creativity and innovation in providing banking services through innovative electronic channels that suit existing customers and attract new customers to the banking sector. 50 2.5952 2.5952 .022 2.3035 2.8869 egyptian banks conduct appropriate training courses to enable employees to keep pace with developments in the digital age 50 2.6548 2.6548 .018 2.3894 2.9201 the more experience the employee has, the greater his ability to keep pace with the requirements of digital transformation and adapt to technological activities 50 2.6905 2.6905 .017 2.4330 2.9480 atman companies 50 2.8095 2.8095 .023 2.5093 3.1098 regulatory sectors (risk, compliance and internal governance). 50 3.0476 3.0476 .023 2.7485 3.3468 for support sectors (human resources engineering sector). 50 2.2262 2.2262 .015 1.9841 2.4683 asset management 50 2.9405 2.9405 .022 2.6483 3.2326 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 20 www.americanjournal.org second: normal distribution and testing it by drawing figure (5) shows the histogram showing the normal distribution figure (6) represents the normal distribution of random error. to check the assumption of homogeneity of random error, we plot the y values on the horizontal axis and the random errors on the vertical axis. it is observed from the resulting figure (figure 6) that the points are uniformly distributed around zero, which indicates that the model does not suffer from the problem of random error variance heterogeneity. thus, the data and information obtained are ready to test hypotheses as follows: american journal of business management, economics and banking volume 20 january, 2024 p a g e | 21 www.americanjournal.org study hypotheses the first hypothesis: there are no significant differences between the ability of iraqi banks to apply artificial intelligence and machine learning and the rapid technological development in financial services. there is a significant correlation between the ability of iraqi banks to apply artificial intelligence and machine learning and the rapid technological development in financial services for the sample studied. table no. (5) shows the analysis of variance to test the first hypothesis anovaa model sum of squares df mean square f sig. regression 66.99 36 0.231 0.843 .0043b residual 39.585 14 0.273 total 106.575 50 a. dependent variable b. predictors: (constant c. predictor: (constant) we note from the regression analysis tables above that the ability of iraqi banks to apply artificial intelligence and machine learning reflects the rapid technological development in financial services. especially for age groups under 30 years, it has led to a significant development in the ability of iraqi banks to apply artificial intelligence and machine learning, as well as the rapid technological development in financial services. at a significant level (0.01), that is, with a highly significant effect, this is why the null hypothesis is accepted, which states (there is a significant correlation between the ability of iraqi banks to apply artificial intelligence and machine learning and the rapid technological development in financial services), meaning that the use of artificial intelligence facilitates banking services. table no. (6) shows the analysis of variance to test the first hypothesis standard error corrected coefficient of determination the coefficient of determination total correlation coefficient 0.523 0.8426 0.8361 0.878 the coefficient of determination was (0.8361), meaning that the application of artificial intelligence and machine learning reflects the rapid technological development in financial services. the value (0.8361) is from the increase in the absorptive capacity of iraqi banks, and the remaining amount (0.1639) is due to variables outside the elements studied. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 22 www.americanjournal.org second hypothesis: there are some sectors in the bank that are more affected by the application of financial technology tools than other sectors .table no. (7) shows the analysis of variance to test the second hypothesis anovaa model sum of squares df mean square f sig. regression 50.75 36 0.175 0.0577 .0039b residual 43.935 14 0.303 total 94.685 50 a. dependent variable b. predictors: (constant c. predictor: (constant) we note from the regression analysis tables above that age, gender, and educational level have an impact on some sectors of the bank that are more affected by the application of financial technology tools than other sectors. at a significant level (0.01), that is, with a highly significant effect, this is why the null hypothesis is accepted, which states (there is a significant correlation between some sectors of the bank that are more affected by the application of financial technology tools than other sectors. table no. (8) shows the analysis of variance to test the second hypothesis standard error corrected coefficient of determination the coefficient of determination total correlation coefficient 0.472 0.819 0.802 0.793 as for the coefficient of determination, it reached (0.802), meaning that all age, gender, and educational level determine the value (0.802) of the requirements of the sectors in the bank that are more affected by the application of financial technology tools than other sectors, and the remaining amount (0.198) is due to variables outside the variables studied. internal consistency of the data of the first axis (personal data) with the data of the second axis. the role of artificial intelligence and machine learning in digital banking technology. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 23 www.americanjournal.org table no. (9) shows the extent of internal consistency of the impact of the data of the first axis (personal data) with the data of the second axis. the role of artificial intelligence and machine learning in digital banking technology and the extent of the correlation coefficient. no questions pearson correlation coefficient (calculated)r the result 1 from your point of view, banks must adopt a strategy for the digital transformation of banking services that enables them to benefit from technological development and maintain their market share. 0.965 significant 2 obtaining market share in the banking sector has become dependent on the extent of banks’ success in attracting and developing workers with the appropriate competencies to keep pace with developments in the digital age. 0.654 significant 3 digital transformation of banking activities creates more jobs than it destroys 0.899 significant 4 the human element is considered the most important asset of the institution and one of the most important components to enable the bank to digitally transform and keep pace with developments in the digital age 0.814 significant 5 serious steps must begin to be taken to digitally transform banking activities, even in the absence of a large segment of customers integrating into digital activities. 0. 65 significant 6 fintech companies are competing with banks in providing financial services to customers. 0.823 significant 7 competition in the field of financial services has become dependent on the elements of creativity and innovation in providing banking services through innovative electronic channels that suit existing customers and attract new customers to the banking sector. 0.765 significant 8 egyptian banks conduct appropriate training courses to enable employees to keep pace with developments in the digital age 0.623 significant 9 the more experience the employee has, the greater his ability to keep pace with the requirements of digital transformation and adapt to technological activities 0.854 significant tabulated value of r: 0.235 at a significance level of 0.05 and degree of freedom =48 degree of freedom = sample number -2 rule: if the calculated r is greater than the tabulated r, there is a significant correlation source: prepared by us based on spss v26 output. that is, its paragraphs are statistically significant, as we find that the correlation coefficients calculated for each of its paragraphs are greater than the tabular value of r, in all the paragraphs. the axis means that there is an important correlation, including the paragraphs of the axis, that is honest and internally consistent with what it was designed to measure. 3cronbach’s alpha reliability analysis validity and reliability are among the most important topics to be examined in terms of their impact on the results and their ability to generalize the results. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 24 www.americanjournal.org credibility and consistency are among the most important topics that concern researchers in terms of their impact on the importance of research results and their ability to publish the results. reliability and consistency are related to the tools used in research, and their ability to measure and accurately measure the readings taken from these tools. cronbach's alpha is a measure of the reliability of a test (questionnaire), cronbach's alpha is a measure of internal consistency, i.e. the extent to which a group of items are closely related, and cronbach's alpha is a measure of internal consistency. it is a simple way to measure whether a result is reliable or not. reliability refers to the amount of true variance that can be accounted for by the observed variance in a measurement. several coefficients have been proposed to estimate reliability from internal consistency, cronbach's alpha is the most popular, and cronbach's alpha is one of the most widely used reliability measures in the social and organizational sciences. the test was performed and the alpha value was extracted as in the table below. table no. (10) shows cronbach’s alpha coefficient reliability statistics cronbach's alpha cronbach's alpha based on standardized items n of items .799 .957 4 from the table above it is clear that the alpha ratio is equal to (0.799), which is a good ratio. it has been proven that the questionnaire will give good results and indicates honesty and stability in its results. internal consistency of the data of the first axis (personal data) with the data of the third axis. what sector do you think will be most affected by the technology tools associated with digital transformation processes . table no. (11) shows the extent of internal consistency of the data of the first axis (personal data) with the data of the third axis. what sector do you think will be most affected by the technology tools accompanying digital transformation processes and the extent of the correlation coefficient no questions pearson correlation coefficient (calculated)r the result 1 atman companies 0.731 significant 2 regulatory sectors (risk compliance and governance internal). 0. 842 significant 3 for support sectors (human resources engineering sector). 0. 991 significant 4 asset management 0.514 significant tabulated value of r: 0.235 at a significance level of 0.05 and degree of freedom =48 degree of freedom = sample number -2 rule: if the calculated r is greater than the tabulated r, there is a significant correlation source: prepared by us based on spss v26 output. that is, its paragraphs are statistically significant, as we find that the correlation coefficients calculated for each of its paragraphs are greater than the tabular value of r, in all paragraphs. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 25 www.americanjournal.org axis means that there is a significant association, including the axis items, that is true and internally consistent with what it was designed to measure. table no. (12) shows cronbach's alpha coefficient reliability statistics cronbach's alpha cronbach's alpha based on standardized items n of items .812 .973 9 from the table above it is clear that the alpha ratio is equal to (0.812), which is a good ratio. it has been proven that the questionnaire will give good results and indicates honesty and stability in its results. 4.conclusion 1difficulty gaining customer trust due to fear of fraud in the absence of adequate consumer protection frameworks in the field of financial services and data privacy laws. 2low quality of internet and mobile phone service and their prices, despite the high penetration rates of information and communications technology in recent years. 3institutional support is still limited, as a few arab countries have established incubators to help increase startup companies. 4the laws imposed on financial technology have hindered the development of this field in the arab world 5financial technology is no longer an option because of the local and international investment opportunities it provides 6the abundance of means of communication allows quick access to the world of financial technology 7in order to increase the efficiency of the iraqi banking sector, iraq must adopt a smart regulatory strategy with its effective implementation 8investment in technology and continued support for emerging companies by the government 9the application of artificial intelligence contributes to increasing the efficiency of the performance and strategic activities of the state and institutions 10banks must make better use of new capabilities by continuously innovating at speed and scale and reinvesting as necessary to extract optimal value from technologies that support artificial intelligence. 11the application of artificial intelligence contributes to reducing the negative aspects accompanying banking work, such as cases of fraud, money laundering, and reducing human errors. 12artificial intelligence is applied in the banking sector through a number of approaches, such as chat robots and process automation. despite the positives presented by investing in artificial intelligence, there are a number of challenges that may prevent the widespread application of these applications american journal of business management, economics and banking volume 20 january, 2024 p a g e | 26 www.americanjournal.org references 1. ahmed kazem, university research on artificial intelligence, imam jaafar university, college of information technology, department of software engineering, iraq, 2012 . 2. ahmed kazem, artificial intelligence book, imam sadiq university, college of information technology, department of software engineering, iraq. 2012 . 3. jihad ahmed afifi, artificial intelligence and expert systems, first edition, amjad publishing and distribution house, amman, jordan, 2014 . 4. khairuddin bouzarb, heba sahnoun, a collective book entitled applications of intelligence as a modern trend to enhance the competitiveness of business organizations, first edition, arab democratic center for strategic, political and economic studies publishing, berlin germany, 2019. 5. zain abdel hadi, artificial intelligence and expert systems in libraries, academic library, first edition, cairo, 2000. 6. nazim muhammad nouri al-shammari, abdel fattah zuhair abdel alt, electronic banking, wael publishing house, jordan, 2008 . 7. william krams, the seven axes of intelligence, wadi el nil distribution, egypt, 2011. 8. yassin saad ghaleb, information systems analysis and design, first edition, dar al-manhaj for publishing and distribution, amman, jordan, 2004. 9. yassin saad ghaleb, management information systems, dar al-yazouri for publishing and distribution, amman, jordan, 2018 . 10. muellerj&michaels, the rise of fintech in the middle east,an analysis of the energence of bahrain and the united arab emirates,milken institute, 2019. 11. muellerj&michaels, the rise of fintech in the middle east,an analysis of the energence of bahrain and the united arab emirates,milken institute, 2019. 12. muellerj&michaels, the rise of fintech in the middle east,an analysis of the energence of bahrain and the united arab emirates,milken institute, 2019. 13. shukla s, & vijay j,applicability of artificial intelligence in different fields of life, international journal of scientific engineering & research, 2013, p 28 14. https://magnitt.com/research/2019-mena-fintech-venture-report-ar-50676 15. http://fintechnews.sg/27160/ai/the-potential-of-ai-in-banking-report 21/11/2023 ,17:00 16. http://www.futureperfectmachine.com/s/ai-infinance-the-road-aheadfpm-dravis-pklz.pdf/ 30/11/2023 ,22 :15 17. https://edoclogic.com/wp-content/uploads/2018/01/technology-hangingfintech-marketsj.jefferys-and-randy.pdf 12/11/2023, 18:30 18. https://en.wikipedia.org/wiki/applications_of_artificial_intelligence 29/12/2023 ,17:00 19. https://icpf.ir/wp-content/uploads/2018/05/the-future-of-fintech.pdf 10/12/2023, 17:03 american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 176 www.americanjournal.org international experience in the formation and management of commercial banks' capital тожабоева нилуфар, базовый докторант, тгэу, e-mail: nilu.2208@mail.ru phone: +998909703644 a b s t r a c t k e y w o r d s this article examines the international experience of formation and management of commercial banks’ capital on the example of several developed foreign countries. the requirements of the basel committee on capital formation and management are also considered. the analysis compares the practice of foreign countries in matters of formation and management of capital with the practice of the republic of uzbekistan. as a result, it was revealed that despite the application of the basel recommendations by most countries, there are still differences, which is explained by the level of development and market conditions of each country. based on the results of studying and analyzing international experience in the formation and management of capital of commercial banks, relevant conclusions and some proposals were developed. introduction formation and management of commercial bank capital is a key aspect for stable functioning of these organizations. especially, the global crisis, pandemic and military operations in ukraine were the moments in the world economy when banks faced the problem of resource scarcity. today, many large banks, still reeling from the effects of large and unforeseen losses, are struggling to preserve and manage capital. in particular, in uzbekistan this issue is being considered at the state level. in his speech, the president of the republic of uzbekistan sh. m. mirziyoyev, paying special attention to the privatization of commercial banks, noted: "the focus of our attention will be the widespread introduction of digital technologies in the activities of banks. we will prepare for privatization "sanoatkurilishbank", "asaka bank", "ipoteka bank", "aloka bank", "turon bank" and "kishlokkurilish bank". the state stake in at least one major bank will be fully realized to strategic investors" [3]. this suggests that there will be significant changes in the structure and composition of the capital of some commercial banks of our country, which in turn may directly or indirectly affect their financial stability. along with this, the study and review in theory and practice of the experience of international commercial banks in the field of formation and management of capital is of great american journal of business management, economics and banking volume 22 march 2024 p a g e | 177 www.americanjournal.org interest, as the practice of foreign commercial banks shows that they have experienced various economic crises, mergers and bankruptcies in the process of their activities as a consequence of ineffective management of their capital. literature review theoretical, methodological and practical aspects of bank capital formation and its effective management have been studied by many foreign and domestic academic economists. however, the study revealed that there is no single view of economists and experts on the economic essence of bank capital. for example, professor v. m. usoskin calls bank capital an important and integral part of the bank's financial resources [4]. о. i. lavrushin considers bank capital as a set of funds that are created by a commercial bank to carry out its activities and ensure the confidence of depositors and other creditors [5]. american scholars chris d.j. burlton and diane mchoughton believed that, bank capital along with being a sufficient reserve to prevent various contingencies arising in banking activities, also helps to eliminate insolvency arising in adapting to changing market conditions [6]. it follows that bank capital is the sum of a bank's own funds, which forms the financial basis of its activities and a source of resources. the bank's capital is designed to maintain customer confidence in the bank and to convince creditors of its financial strength. it should be large enough to provide confidence to borrowers that the bank is able to meet their credit needs even under unfavorable conditions of economic development of the country. thus, according to the requirement of the basel committee, the following sources should be included in the structure of the core capital: paid part of the authorized capital, share premium of the bank, reserve capital, retained earnings, previous years, proceeds from the sale of non-cumulative preferred shares of the bank. the structure of additional capital of banks includes the following main elements: part of the reserve intended to cover credit losses, revaluation reserve, subordinated debt obligations, investments aimed at creating consolidated subsidiaries. despite the fact that most countries in the formation of capital structure rely on the recommendations of the basel committee, still taking into account the nature of the economy and the market environment of each country, the views of scientists slightly diverge. for example, associate professor r.g. olkhova does not include special reserves and devaluation reserve in the capital structure [5]. uzbek scientists-economists o.o. olimjonov and b.b. babaev scientifically substantiated that the amount of reserve intended to cover credit risk is not included in the full amount of capital. they also did not include net profit of the current year in the capital [7]. research methodology in the course of the research we have studied the procedure and peculiarities of formation, as well as capital management of commercial banks of foreign countries. when analyzing the data obtained during the study of the experience of international banks, such methods as: comparison, induction, deduction, tabular and graphical, methods of abstract thinking and systematic approach were widely used. american journal of business management, economics and banking volume 22 march 2024 p a g e | 178 www.americanjournal.org analyses and results one of the main questions that helps to unravel the economic essence of commercial banks' capital is the question of bank capital adequacy. if we turn to history, the assessment of bank equity capital adequacy in foreign countries begins in the 20th century. at that time, international banking practice widely used the capital adequacy ratio developed by the u.s. federal reserve system. according to it, this ratio is determined by dividing the total capital by the total amount of deposits, and its minimum level was 10 percent [4]. later in 1988, under the auspices of the basel committee on banking regulation and supervision, the agreement on the international harmonization of capital calculation was concluded, which introduced an adequacy ratio called the cook ratio the minimum ratio between a bank's capital and its balance sheet and off-balance sheet risk-weighted assets in accordance with the norms. today, the total capital and core capital adequacy ratios are set at 8% and 4.5% [8]. thus, the formula for calculating capital adequacy can be summarized as follows: 1. total capital adequacy ratio: k1 = total capital / trwa 2. core capital adequacy ratio: k2 = tier i capital / trwa where trwa total risk-weighted assets. according to the basel, assets by risk level are grouped into 4 groups: 0 percent, 20 percent, 50 percent and 100 percent. however, 8 risk categories are used in the banking practice of our republic. as for the requirements of supervisory authorities on capital adequacy, the study revealed that in different countries this indicator may differ, but it is not lower than the ratio recommended by the basel. for example, the total capital adequacy ratio in the usa is 8%, in most eu countries 8%, in russia 8%, in china 6%, in kazakhstan 8%, in kyrgyzstan 12%, in uzbekistan 13%. let us consider the capital adequacy ratio of the banking system of some foreign countries for the last few years (chart 1). fig. 1. the indicator of the adequacy of the total capital of some countries for 2018 – 2022 y. 9.4 9.4 8.6 8.6 8.68.6 9.2 8.4 8.2 8.2 13.3 14.3 13.8 12.4 12.5 11.3 12.8 11.8 11.2 10.5 7.4 7.6 7.5 7.8 8 7 8 9 10 11 12 13 14 15 2018 2019 2020 2021 2022 usa russia kyrgyzstan kazakhstan china american journal of business management, economics and banking volume 22 march 2024 p a g e | 179 www.americanjournal.org looking at the situation in the international arena, we can say that in developed economies the total capital adequacy ratio is lower compared to countries with developing economies. for example, in the usa and russia, the capital adequacy of the banking sector fluctuates between 9% and 8%. taking into account that the minimum value required by the supervisory authorities of these countries is 8%, it can be noted that their banks over the last 5 years have met this requirement with a slight surplus. as for china, the regulator set the capital adequacy ratio below the basel recommendation of 6%. however, the capital adequacy ratio of the chinese banking system did not fall below 7.4% over the analyzed period, and in 2022 it reached 8%, which is 2% above the required minimum. the chart shows that the indicators of kazakhstan and kyrgyzstan are significantly higher than those of the other analyzed countries. in kazakhstan, there was a downward trend in the capital adequacy ratio, and it reached 10.5% in 2022. in kyrgyzstan, this ratio has been fluctuating within 12% in recent years. to analyze the data on capital adequacy in uzbekistan, consider table 1. table 1 capital adequacy of the banking sector of the republic of uzbekistan for 2018 – 2022y. the name of the indicator 01.01.2018y 01.01.2019y 01.01.2020y 01.01.2022y billion sums share in % billion sums share in % billion sums share in % billion sums share in % 1. tier i capital 20740 91,3 25531 84,7 43659 83,2 65786 88.4 1.1common equity 20693 91,1 25493 84,6 43622 83,1 65590 88.1 1.2 added capital 48 0,2 38 0,1 38 0,1 195 0.3 2. tier ii capital 1985 8,7 4614 15,3 8808 16,8 8633 11,6 total capital 22725 100 30145 100 52467 100 74419 100 capital adequacy ratio 18,2% 15,6% 23,5% 17,6% tier i capital adequacy ratio 16,6% 13,2% 19,6% 15,6% the table shows that in our country the capital adequacy ratio in 2022 amounted to 17.6%, which is significantly higher than the requirements of the supervisory authority (13%) and almost twice exceeds the basel recommendations (8%). if we compare this indicator with the indicators of neighboring countries kazakhstan and kyrgyzstan we see that the banks of uzbekistan exceed the capital adequacy requirement by 5.1% compared to the republic of kyrgyzstan, and 7.1% compared to the republic of kazakhstan. it should be noted that while on the one hand a high capital adequacy ratio shows the reliability of a bank, on the other hand it is an indicator that banks do not use their capital to the fullest extent. consequently, banks do not perform a sufficient volume of active operations, which, in principle, would allow the volume of their capital. thus, we conclude that banks in uzbekistan do not use their full potential in performing active operations, maintaining a high level of capital adequacy. american journal of business management, economics and banking volume 22 march 2024 p a g e | 180 www.americanjournal.org conclusions and proposals based on the results of the analysis of the topic under study, the following conclusions can be drawn: in conditions of instability of the world economy, increasing frequency of regional financial crises and intensifying competition in the world markets, prevention of bankruptcy in the banking sector and ensuring the safety of the banking system are of crucial importance and require systemic and coordinated actions. all commercial banks currently operating in the market use the recommendations of the basel committee, which defines capital adequacy as the ratio of capital to risk-weighted assets. however, based on economic, political and other factors in a country, there are differences in the grouping of assets by risk, as well as in the minimum capital requirement. for example, basel recommends maintaining a core capital adequacy ratio of at least 8%, while in china the ratio is 6%, in many eu countries 8%, in kyrgyzstan 12%, and in uzbekistan 13%. for commercial banks of the republic of uzbekistan, the issue of increasing the volume of own capital also does not lose its relevance. despite the fact that today measures are taken to increase the level of capitalization of commercial banks, the total amount of banks' own capital is still inferior in comparison with other countries. theoretical and practical results of the analysis and assessment of international experience in the issues of formation and management of capital adequacy of commercial banks served to form the following proposals: 1. theoretical and practical aspects of bank capital adequacy and its provision have been studied by many foreign and domestic academic economists. however, the study revealed that there is no unified view of economists and experts on the economic essence of bank capital. therefore, it is necessary to continue to carry out relevant scientific research in this area. 2. taking into account that the capital adequacy norm of commercial banks today twice exceeds the established norms by the central bank, it is recommended to increase the share of incomegenerating assets of the bank, especially the volume of investments in the real sector of the economy. these conclusions and recommendations, in our opinion, will ensure financial stability and sustainability of the banking system, as well as enable our domestic banks to take a worthy place among the leading banks of developed countries. references 1. the law of the republic of uzbekistan "on banks and banking activities" № 581 from 20.04.2023y. 2. resolution of the central bank of the republic of uzbekistan №2693 “on approval of the regulation on capital adequacy requirements of commercial banks” from 06.07.2015 y. 3. decree of the president of the republic of uzbekistan №5992 “about strategy of reforming the banking system of the republic of uzbekistan for 2020 – 2025” from 12.05.2020y. 4. usoskin v.m. modern commercial bank: management and operations. – m.: "vasar-ferro", 1994. p. 92 5. banking business. express course: textbook/ col.authors; edited by o. i. lavrushin. — 3rd ed., reprint. and additional — m.:knorus, 2009 6. chris j. barleton and d mcnaughton "banking institutions in developing countries", 2 vols. the world bank washington, d.c. since 1992. c-101. american journal of business management, economics and banking volume 22 march 2024 p a g e | 181 www.americanjournal.org 7. b.b.babaev. issues of formation of commercial banks' resources and their effective use. diss. for the degree of candidate of economics – t.: bfa. 2002. p. 17. 8. basel committee on banking supervision. basel iii transitional arrangements, 2017-2027 https://www.bis.org/bcbs/basel3/b3_trans_arr_1727.pdf 9. official website of the central bank of the republic of uzbekistan – www.cbu.uz 10. the official website of the world bank – www.data.woldbank.org http://www.cbu.uz/ http://www.data.woldbank.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 56 www.americanjournal.org assess the reality of fiscal sustainability between the requirements of financial discipline and the financial imbalance in iraq-analytical study for the period 2010–2020 asst. prof. dr. ahmed. h. al-husayny al-mustansiriyah university administration and economics college banking and financial sciences department dr.ahmad_hamdy@uomustansiriyah.edu.iq a b s t r a c t k e y w o r d s the major goal of the current study is to evaluate the financial sustainability of iraq by looking at financial discipline guidelines on the one hand. however, to recognize and examine the root causes of the financial imbalance, it is common knowledge that nations like iraq, which rely on a single resource to finance their economic operations, are developing financial sustainability policies and strategies by creating an agreement policy that will address both internal and external shocks. increasing economic diversity through diversifying income sources, which promotes budgetary restraint and lowers budget deficit rates, enables organizations to better withstand shocks in the future. the study had two objectives, the first of which addressed the notion. fiscal sustainability, financial discipline, financial imbalance, internal and external shocks, financial imbalance, deficits in public budgets. introduction financial sustainability is a broad area of economic theory, and scholars with a variety of philosophical philosophies and orientations have taken an interest in it, particularly in the final decade of the third millennium. the many dramatic events that took place during this period, including the decline in oil prices that started in 2015, the general lockdown caused by the coronavirus pandemic in 2020, and the crisis of the ukrainian-russian war, all had a direct impact on the worsening of public budget deficits, which in turn caused the financial imbalance to widen. this has prompted numerous nations to implement financial reform policies by enacting budgetary iraq is a recent country to adopt fiscal sustainability strategies because of its particular circumstances after the events of 2003 and the subsequent worsening of public debt and its benefits as a natural consequence of the war's devastation of this infrastructure. not to mention the imbalance in the structure of public budgets dependent on oil rents as an almost sole source of financing for increased public expenditure due to the high proportion of government employment on the other hand, all of which has made public indebtedness increase year after year, posing a real threat to financial american journal of business management, economics and banking volume 22 march 2024 p a g e | 57 www.americanjournal.org sustainability. not to mention the stalemate of the iraqi productive apparatus, which has exacerbated the imports. therefore, iraqi fiscal policymakers must consider a systematic strategy for financial sustainability that would reduce the financial burden of the state's general budget and gradually correct the fiscal imbalance. • the importance of research: the importance of research is highlighted by the fact that the subject of financial sustainability is the focus of fiscal policy design and implementation and is intended to strengthen financial sustainability. on the one hand, a procedural program must be designed to apply the requirements of fiscal discipline to address the causes of deficits in public budgets. on the other hand, it presented a vision that would correct the financial imbalances caused by poor management of financial resources without establishing clear policies to correct the structural imbalance in the general budget structure. • research objective: the research aims to assess the financial sustainability of iraq for the period 2010–2020 through a realistic assessment of iraq's financial sustainability by reviewing the most prominent rules of fiscal discipline and analyzing the most prominent cornerstones in the financial pathways to identify and diagnose the causes of the imbalance and propose effective solutions to it. • research problem: the research problem is to assess the ability of the iraqi financial authority to achieve financial sustainability requirements based on the concept of fiscal discipline and to assess the ability of iraq's fiscal policy to address financial imbalances. • research hypothesis: the research is based on a hypothesis (due to the righteousness of the iraqi economy because it relies on an almost lonely resource to finance the public budget and economic activity, it is expected that fiscal sustainability will not be achieved and fiscal imbalances in the general budget structure will deepen). • research methodology: the research methodology was based on the analytical descriptive method supported by data from several sources, which will assess iraq's financial sustainability for the period 2010–2020, indicate whether the conditions for financial discipline have been met or not, analyze the structure of financial imbalances, and identify their causes. • spatial and temporal dimensions: the spatial dimension of iraq's research is the time dimension. the time limit between 2010 and 2020 has been adopted, according to available data on financial sustainability indicators and financial statements in general. • previous studies: there are numerous studies and research that have attempted to demonstrate the nature of the relationship between public debt, public debt service, and financial sustainability, including: • study of adel sobhy abdelkader al-basha and mekdad ahmad al-naimi: the researchers examined their tagged study (the impact of using financial sustainability to reduce the problems of general budgeting). in their studies, the researchers emphasized that the subject of financial sustainability occupies a wide area of interest for researchers because financial sustainability expresses the government's ability to implement its programs for various activities without undermining its future ability to spend. the study found recommendations, the most important of which was the need to raise awareness about the importance of fiscal sustainability, indicating its role in preparing the state's public budgets, and assess the extent to which the government can continue to implement its economic policies without being exposed to deficits and fiscal deficits when paying by fiscal sustainability. american journal of business management, economics and banking volume 22 march 2024 p a g e | 58 www.americanjournal.org • hamdi ahmed ali al-hindawi study: the researcher addressed in his tagged study the relationship between public debt and economic growth... (is there a standard critical level of public debt?) in his study, the researcher analyzed the nature of the relationship between economic growth and public debt. theoretical and applied economic literature confirms that there is a negative impact of public debt on economic growth that begins to emerge at a certain point when public debt reaches its critical level. the study concluded that how public debt affects economic growth is not necessarily linked to the size of the debt itself. or relative to gdp, but depend on multiple factors within the economy that vary from country to country and vary depending on their critical level of public debt. the most important factors are the efficiency of economic institutions and policies, the structure of public debt, the way public loans are spent, and the level of democratic practice. • hajir adnan zaki and zainab mohammed rashid study: the tagged study (sustainable financial dimension of development approaches to indicators in iraq's economy) "the most important economic indicators that can be relied upon in assessing economic sustainability, from which financial sustainability derives the study found important findings on the role of public debt and its positive effects if it is directed towards financing income-generating projects and the negative role of public debt if it is directed towards financing current consumer expenditure. • study by mayah habib al-shammari and ali khalid abdullah (analysis of financial sustainability indicators in iraq for the period 2003–2017): the study explains that the development of the state from its classic concept of non-interference in economic activity, where the role of the state is limited to key functions (security, judiciary, and defense), to the concept of an interventionist state by the keynesian vision, which has expanded its scope of action to interfere in the issues of education, health, social security, basic projects, and infrastructure, as most countries embrace keynesian thinking, the concept of financial sustainability is linked to the concept of an interventionist state by assessing the state's ability to carry out its functions under government intervention in economic activity. the study found that the government's failure to perform those functions reflected the government's fiscal unsustainability. • study of khadir abbas hussein al-waili and zainab hadi nimah: tagged (iraq's indebtedness and opportunities for financial sustainability), in their study, the two researchers emphasized that the dependence of the iraqi economy on the oil supplier to form public revenues to finance the general budget will inevitably lead to a deficit in the general budget and that this deficit is financed by borrowing. the study found that financial sustainability indicators such as the debt ratio of gdp exceeded the security limits in recent years due to the decline in global oil prices, on the one hand. on the other hand, the ratio of the general budget deficit to gdp exceeded the allowable limits. 1-first topic financial sustainability: concept, formation, and rules of financial discipline 1.1 concept of financial sustainability and its emergence: financial sustainability has diversified through diversified economies and diversified government trends. most economies may be exposed to economic shocks and financial crises. these economies are more concerned with financial sustainability. (fiscal sustainability) to "the ability of the state to american journal of business management, economics and banking volume 22 march 2024 p a g e | 59 www.americanjournal.org service public debt in the medium and long term without creating financial crises or pressures on the structure of public finance" ((kavanagh et al., 2017)). some financial literature indicates that fiscal sustainability is a situation where the government is represented by its fiscal authority and has the potential to implement its government programs without affecting its future fiscal capacity or its fiscal solvency. (al-wassalah, kamal amin.,2016) the international monetary fund (imf) views financial sustainability as a state’s ability to meet its current and future financial obligations without the need to reschedule public debt. it is worth noting that the concept of fiscal sustainability differs from one economy to another and is based on the country's economic development and growth((croce & juan-ramon, 2003)). for example, in developed countries, fiscal sustainability is seen as the ability of the economic system to achieve intergenerational justice ((jaimovich & panizza, 2006)), meaning that the concept of fiscal sustainability has gone beyond the concept of resilience to fiscal liabilities. in developed economies, an evolving concept of fiscal sustainability emerges based on the idea that the fiscal value of currentgeneration taxes equals the future value of the benefits they will receive. the roots of the term "fiscal sustainability" date back to the mid-1990s, and the concept revolved around governments' ability to continue to face long-term shocks and financial crises through harmonized fiscal policies that create a kind of alignment between public expenditures and revenues. this concept was active in the subsequent few years, specifically in 1997 when a report was issued. the brundtland report, published on behalf of our common future, was concerned with environmental sustainability, and the term "financial sustainability" shifted to the economic side (al hawi, mohammed ahmed., 2015). the concept of financial sustainability is partly linked to the concept of fiscal deficit in the general budget. financial sustainability has to do with the concepts of public debt and taxation, both of which affect financial sustainability. for example, governments do not overstate tax rates in times of fiscal deficits. because continued taxation is directly aimed at saving, it expands consumption and increases consumption rates on the one hand. on the other hand, the imbalance in financial sustainability is not related to the level and quantity of public debt. as long as public debt funds are invested and used in income-generating areas, there is no problem, especially since it does not affect the levels and rates of economic growth, especially if borrowed funds help in real additions to the national productive system and infrastructure development, thereby contributing to increased economic growth rates. in this case, the sustainability of public debt is desirable even if the ratio of public debt to gdp is as high as in developed countries. 2.1 rules of financial discipline: before entering the rules of fiscal discipline, it must be pointed out that there is a relationship of some kind between the credibility of fiscal policy and its ability and efficiency to positively influence income levels, operations, and financial stability through the application of fiscal discipline rules. (the government's ability is represented by its fiscal policy and instruments to implement and maintain fiscal operations in a streamlined manner that ensures long-term fiscal integrity and financial prosperity.) (krejdl, 2006). fiscal discipline is concerned with designing appropriate economic and social systems with the task of protecting the financial system as a whole from the risks of shocks and financial crises and maintaining financial stability through the design of government programs with the task of reducing american journal of business management, economics and banking volume 22 march 2024 p a g e | 60 www.americanjournal.org the fiscal deficit and achieving a fiscal surplus in the general budget. governments can achieve fiscal discipline by following several conditions: 1. controlling public expenditure in line with public revenues by designing programs to curb the fiscal deficit and trying to minimize it to the least in times of financial prosperity; not overextending public expenditure to exacerbate public debt; and not being able to assume financial responsibility to repay and service those debts. 2. design fiscal-monetary policies responsive to economic and financial shocks in the medium term, capable of absorbing costs in a balanced manner without affecting basic spending to finance the public spending priorities of the government apparatus. 3. the root of the rules of fiscal discipline is to achieve economic stability by designing a fiscal policy responsive to all economic conditions and data. this is achieved by creating a kind of balance and harmonization between the requirements of fiscal sustainability and fiscal flexibility. this is what japan worked on after the second world war. 4: work on designing financial programs and policies that will not burden future generations with current spending burdens by containing the role of the government and not overestimating the ratio of public debt to gdp to achieve current benefits whose financial burden is borne by the future generation. the design of government fiscal programs based on the previous conditions will enable governments to apply fiscal discipline rules. thus, they will be able to adapt fiscal policies to meet expected shocks. after this review of fiscal discipline conditions, fiscal discipline rules can be clarified as approved by the international monetary fund (central bank of iraq, various annual bulletins): 1budget balance rule: by this rule, governments should design a policy aimed at reducing the fiscal deficit to acceptable levels. this is done through the implementation of programs that control spending operations, take into account the efficiency element of public expenditure, and try not to exceed the total deficit barrier. (3%) of gdp as approved by the convention of maastricht, and achieving this goal will serve the requirement of financial sustainability. (financial sustainability), the aim of which is to increase the proportion of the fiscal deficit, will eliminate the impact of public spending, or lower tax rates on this aggregate demand, on the one hand. on the other hand, exceeding the established deficit rate will create a disruptive environment for the work of the private sector, leading to the so-called impact of crowding (the crowded effect). the bottom line will be to restrict fiscal policy and limit its effectiveness in reaching the goal of financial and economic stability. 2debt rule: under this rule, imf experts believe that the public debt/gdp ratio should not exceed 60%, bearing in mind that this ratio is not very ideal and cannot be adopted anyway; this proportion is determined by several factors and variables, primarily the nature and rules of the country's tax systems. depending on the size of the national income, inflation rates, and other factors, the rule aims to try to formulate policies that will adapt public debt in a way that society can afford and that will not adversely affect economic growth rates. spending base: according to this rule, governments must design conventional policies targeting overall expenditure and operational expenditure in particular as a proportion of gdp or as an absolute number in terms of value, bearing in mind that the design of such policies must be in a time frame american journal of business management, economics and banking volume 22 march 2024 p a g e | 61 www.americanjournal.org ranging from (3-5) years, and those policies formulated by governments aim to invest them as influential tools to reduce the public debt gap. 3revenue base: according to this rule, the financial authorities of the countries must determine the minimum and highest levels of expected public revenues. the aim is to reduce the potential fiscal burden of taxes. that goal is achieved through the design of fiscal programs aimed at improving access to actual fiscal revenues as a proportion of gdp. 4golden rule: under this rule, investment financing operations are made through borrowing. it should be noted that countries with natural resources face several challenges, such as the dutch disease. or lack of access to international capital markets, or it suffers from short-term fiscal policies due to the price fluctuations of depleted resources in global markets, such as those affecting global oil prices. 2second topic iraq's financial imbalance... analytical insight iraq's fiscal policy has suffered many disruptions and shocks, resulting in a structural imbalance in the fiscal structure, beginning with the form and content of the general budget and its preparation plans, through the need to achieve the interests of the various economic sectors, and ending with the achievement of the final objectives of the budget, namely the coverage of public expenditure resulting from the provision of public services. by analyzing certain general budget items during the duration of the study (2010–2020), iraq's financial policy shows that it suffered from a financial imbalance, especially in 2014, as a result of the fact that some iraqi governorates fell under the weight of isis's terrorist occupation on the one hand. on the other hand, public spending pressures, especially military expenditures, are generated to finance the hostilities. (39.2) $/barrel, which generated additional pressure on the general budget and subsequently deepened the fiscal deficit. the table shows the extent of the financial imbalance between general income and general expenditure. table (1) total general income and expenditure, deficit and surplus in the general budget (2010-2020) ($1 billion) year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* oil revenues 53.044 86.562 93.218 92.902 81.624 58.051 37.199 54.682 64.300 78.11 7 89.185 non-oil revenues 6.937 6.435 9.240 4.576 8.902 2.912 8.523 10.306 12 .069 9.857 11 .236 total general revenues 59.981 92.997 102.458 97.478 90.526 60.963 45.722 64.988 76.369 87.974 100.421 total general expenditure 59.943 67.314 90.171 102.167 94.437 69.591 61.824 63.437 86.798 11 0.923 153.488 deficit/surplus 0.38 25.683 12 .287 (4.689) ( 6.792) (8.628) (10.637) 1.551 (10.429) (22.949) (53.067) source: 1: ministry of planning, central bureau of statistics, directorate of national accounts 2: ministry of finance, general budget department, different years the figures in parentheses represent the state of the fiscal deficit in the general budget. american journal of business management, economics and banking volume 22 march 2024 p a g e | 62 www.americanjournal.org (*): preliminary statements not ratified by the house of representatives as of the date of preparation of this study from the observation of the figures in the previous table (1), it appears that iraq relies in a significant proportion on oil revenues to cover public expenditures, and from the previous table, it appears that iraq has achieved financial surpluses for the duration (2010–2013). this is due to the relative rise in crude oil sales and export prices, either in confined duration (2013–2016) or iraq achieved a fiscal deficit in the general budget that reached its highest level in 2016, as the fiscal deficit in the general budget reached $10.637 billion. this indicates a financial imbalance in the inability of public revenues to cover public expenditure due to lower global oil prices and lower oil revenues of $37.199 billion in 2016. the chart shows the imbalance between oil revenues and total public expenditure for the period 2010– 2020. figure (1) total oil revenue and general expenditure for the duration (2010-2020) (usd billion) source: researcher's preparation based on data in table (1) the previous figure shows that the severity of the dependence of the iraqi economy on a single financial resource to finance economic activities, the oil resource, has exacerbated the imbalance between public spending and oil revenues. moreover, iraq's fiscal policy is far removed from the application of the above five rules of fiscal discipline. about the balance rule, which emphasizes that the total deficit shall not exceed 3% of the gross national product (gnp), iraq's fiscal deficit for the duration (2013–2020) exceeded that of the year 2017, in which iraq achieved a financial surplus of 1.155 billion dollars as a result of the recovery of global oil prices and markets. the table shows the rates of development of the fiscal deficit for the years (2013–2020) as a proportion of gdp. 0 20 40 60 80 100 120 140 160 180 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 totall oil revenue total general expenditure american journal of business management, economics and banking volume 22 march 2024 p a g e | 63 www.americanjournal.org table (2) the ratio of fiscal deficit to iraq's gdp for the period 2013-2020 (%) years 2013 2014 2015 2016 2017 2018 2019 2020 gdp billion dollar 234.6 234.7 171.1 172.5 000 227.5 235.1 168.2 financial deficit 4.698 6.792 8.628 10.637 000 10.429 22.949 53.067 deficit/gdp 0.02 0.02 0.05 0.06 000 0.04 0.09 0.31 source: ministry of finance, general budget service. quarterly estimates of gdp, miscellaneous years table 1 data from table 2, iraq's move away from the budget balance rule is evident. this is due to unplanned agreed policies due to the severity of operational expenditure at the expense of investment expenditure as a result of unexamined government operating policies, on the one hand. on the other hand, dependence has sharpened on one resource to finance the spending activity, namely the oil supplier. table 2 notes that the ratio of fiscal deficits to the gross domestic product is starting to exceed the established ratio of 3%. since 2015, the percentage (5%) has reached its highest in 2020 (31%). as for the second rule of fiscal discipline, which is the rule of public debt, iraq has its position on both internal and external public debt. iraq is subjected to terrorist aggression, deepening the fiscal imbalance in the general budget, especially since that imbalance was accompanied by the decline in global oil prices during the period. (2013-2016) oil revenues decreased as an essential resource for financing diversified economic activities, as shown in the following figure: figure 2 oil revenues for the period (2013-2019) (usd billion) source: researcher's work based on table (1) data according to the public debt base, the ratio of public debt to gdp should not exceed 60%. the following table shows the total public debt for the period 2010–2020 and its ratio to gdp. 92.902 81.624 58.051 37.199 54.682 64.3 78.117 2013 2014 2015 2016 2017 2018 2019 oil revenues american journal of business management, economics and banking volume 22 march 2024 p a g e | 64 www.americanjournal.org table (3) the ratio of public debt to gross domestic product for the duration (2010-2020) ($1 billion) years gdp internal dept. external dept. total public debt. public debt ratio/gdp (%) 2010 138.5 9.2 75.2 84.4 60.9 2011 185.7 10.5 62.1 72.6 39.08 2012 218.03 9.9 47.9 57.8 26.51 2013 234.6 7.2 35.2 42.4 18.07 2014 234.7 17.3 36.3 53.6 22.8 2015 171.1 25.5 40.8 66.3 38.7 2016 172.5 26.9 42.7 69.6 40.3 2017 190.6 27.2 44.9 72.1 37.8 2018 227.5 10.3 23.3 33.6 14.7 2019 235.1 9.9 45.8 55.7 23.6 2020 168.2 14.5 60.9 75.4 44.8 source: 1 column (2), central bank of iraq, directorate general of statistics and research, various annual bulletins 2 columns (3, 4, 5), based on ministry of finance reports, public debt service, various years bulletins 3 column (6), by the researcher from the previous table, it is clear that iraq's fiscal policy has adjusted the public debt despite its high rates relative to gdp and the country's economic condition. this is evident from the fact that the ratio of gdp to gdp does not exceed 60% except in 2010. as for the third rule of fiscal discipline, which is the expenditure rule, the financial imbalance between operational and investment expenditure has been a general feature of iraq's general budgets since 2003. this is due to poor planning by successive governments in iraq, especially in public employment policies, on the one hand. on the other hand, the weak investment vision regarding the allocation of funds and their orientation towards government investments, as well as high rates of financial and administrative corruption and many other factors, combined and rendered iraq's investment expenditure useless in practice. the following table shows the imbalance between the two aspects of operational and investment expenditure: table (4) iraq's operating and investment expenditures for the period (2010-2020) ($1 billion) years operational expenditure investment expenditure total public expenditure the ratio of operating expenditure to total public expenditure (%) 2010 59724307 22913533 82637840 72.27 2011 67942559 31217098 99159657 68.52 2012 80241537 37936745 118178282 67.89 2013 84524661 56390472 140915133 59.98 2014 70668969 48572473 119241442 59.26 2015 79399051 40879102 120278153 66.01 2016 80935771 24908006 105843777 76.46 2017 81587343 32166651 113856321 71.72 2018 82700242 31156079 113856321 72.63 2019 84900628 34731142 119631770 70.96 2020 90215476 35183520 125398996 71.94 american journal of business management, economics and banking volume 22 march 2024 p a g e | 65 www.americanjournal.org source: researcher's work based on ministry of finance data, general budget service, and various years' bulletins. from the previous table, the extent of the financial imbalance between the operational and investment aspects of iraq's general budget is that the operational aspect dominates most of the general budget, meaning that most of the public debt tends to pay the wages and compensation of employees at the expense of investment. this constitutes an additional burden on the state, particularly in the servicing of public debt and the payment of interest on the debt, which has continued to increase, posing a clear threat to financial sustainability. regarding rule iv of the rules of financial discipline, which is the revenue base, iraq appears to be far from achieving sustainability on the general revenue side since most of the revenues are oilderived at the expense of other revenues. the figure below shows the extent of the imbalance in the general revenue structure: figure (3) oil revenues and general revenues for the duration (2010-2020) (usd billion) source: researcher's preparation based on ministry of finance data, general budget service, various years' bulletins the fifth and final rule of fiscal discipline is the golden rule, which emphasizes that the financing of investments is through borrowing. iraq is still unable to achieve that base because of the rationality of its economy, which is almost entirely dependent on the oil supplier, and therefore its economy is subject to the volatility of oil prices in international markets. on the other hand, iraq's ability to access international capital markets and obtain adequate loans to finance investments is weak. as we have noted, most of the public debt is used to cover current expenditures rather than investment. conclusions: 1. from the previous review of the imbalances in the financial structure of the iraqi economy, the extent of conformity with the research hypothesis (because of iraq's economic resilience because it relied on a nearly lonely resource to finance the general budget and economic activity, it is expected that financial sustainability will not be achieved and fiscal imbalances in the general budget structure will deepen) is evident when analyzing the structure of expenditure and general income. 2. achieving financial sustainability is linked to the form of public spending and the diversification of public revenues. which enables the state to pay its public debt and service that debt, in iraq, 0 20000000 40000000 60000000 80000000 100000000 120000000 140000000 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 oil revenues public revenues american journal of business management, economics and banking volume 22 march 2024 p a g e | 66 www.americanjournal.org the financial authorities still face several challenges in deploying the burden of financial expenditure due to the dominance of operational expenditure over investment expenditure on the one hand. on the other hand, there is a lack of diversification of public revenues and reliance on an almost sole resource to finance public expenditure and diversified economic activities. 3. deficits in iraq's general budget continue to constitute relatively high ratios. this runs counter to the principle of fiscal discipline that deficits are not concentrated and that the state has to restructure and prioritize public expenditure so that it can cover its public debt, service, and future benefits. 4. the lack of economic and financial stability during the study period due to the war against isis and the volatility of global crude oil prices, not to mention the weakness in the design of fiscalmonetary policies responsive to shocks and other factors, led to the failure to meet the necessary conditions for the achievement of financial sustainability in iraq as a result of the fiscal deficits achieved in the general budget during the study period. recommendations: 1. the need to design harmonious monetary and fiscal policies that are responsive to internal or external shocks to which iraq's economy may be exposed, especially in times of decline in global crude oil prices, on the one hand, and the other, to address the fiscal deficit in the general budget, thereby reducing reliance on public debt and achieving the conditions for the application of fiscal discipline rules. 2. the need to diversify public revenue sources to create a state of diversity in the composition of gdp by channeling government support to non-oil sectors such as the industrial and agricultural sectors, and the need to design government programs to increase sovereign financial resources away from oil financial resources to achieve the principle of financial sustainability. 3. the need to establish a sovereign fund under the joint administration of the ministries of finance and planning, which will prepare a strategy for financial sustainability, this is done by allocating the proportion of oil revenues that do not affect subsequent generations to create an environment suitable for economic diversification to achieve sovereign revenues of the state (non-oil) that serve as the main pillars for creating financial sustainability. references 1: kavanagh, s., pisano, m., tang, s. y., mcgrath, m. f., linkhart, d., hudson, m., & colon, e. (2017). financial sustainability index: a self-assessment tool for financial sustainability. lincoln institute of land policy. 2: al-wassalah, kamal amin, egypt's economy between the hammer and the van (public debt crises and the deficit in the public budget), ibn rushd al-masri, cairo, 2016, i. 1, p. 82. 3. croce, m. e., & juan-ramon, m. v. h. (2003). assessing fiscal sustainability: a cross-country comparison. international monetary fund. 4. jaimovich, d., & panizza, u. (2006). public debt around the world: a new dataset of central government debt", idb research department working paper nr. 561. 5: al hawi, mohammed ahmed, analysis of public financial sustainability in yemen under the decline in oil production, journal of social studies, university of technological sciences, yemen, no. 44, 2015, p. 278. american journal of business management, economics and banking volume 22 march 2024 p a g e | 67 www.americanjournal.org 6: krejdl, a. (2006). fiscal sustainability: definition, indicators and assessment of czech public finance sustainability. czech national bank, economic research department na příkopě. 7: central bank of iraq, general directorate of statistics and research, various annual bulletins 8: ministry of finance, department of public debt, annual bulletins, and various reports 9: ministry of finance, general budget department, various annual bulletins 10: ministry of finance, general budget department quarterly estimates of gdp, sporadic years. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 28 www.americanjournal.org the impact of the future application of international accounting standards in the public sector in developing the performance of government institutions applying the government accounting system and its contribution to activating the role by the federal board of supreme audit in the republic of iraq amer rahima mahmoud al-quraishi iraq, wasit – kut governorate office aameralqurashi19611@gmail.com prof. dr. emna boumediene manouba university, tunisia emna_doumediene@yahoo.fr a b s t r a c t k e y w o r d s the government accounting system is a tool used by the state through its units to implement its strategic objectives, to raise the level of services, and to provide government financial data in a clear and transparent manner on the financial situation of the state. in order to develop that system, the international federation of accountants sought to create a unified global framework for accounting in the public sector by adopting international public sector accounting standards (ipsas), and one of the objectives of these standards is to convert the basis of accounting measurement from the cash basis to the accrual basis, which has an impact on the quality of financial reporting, achieves transparency, accountability, evaluates performance, and facilitates the process of integration with the international community, as well as activating the role of oversight bodies in auditing and control. as the research problem was confined to how the impact of these standards on government units and its reflection on improving the quality of the lists and financial statements and its impact on activating the role of the oversight authorities on these units, the research was built on major hypotheses that meet at the same time to implement the standards (ipsas) that improve the quality of the accounting system a model was prepared for the financial statements of the research sample according to (ipsas) with proving the hypotheses of the study on conducting the descriptive statistical analysis of the questionnaire international public sector accounting standard, government accounting system, non-profit government departments, financial statements, iraqi public sector. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 29 www.americanjournal.org prepared for that, with a statement of the results of the tests by calculating relative importance indicators, arithmetic averages, standard deviations, correlation coefficient (pearson) and simple linear regression coefficients. the researcher concluded that there are shortcomings in the presentation and disclosure of the financial data of the study sample of the current government accounting system, and the study recommended the need to move towards the use of the experience of countries in adopting and applying standards (ipsas) for the purpose of convergence between the systems of the world and the government accounting system approved in iraq. the study of accounting theory aims to deepen understanding of the intellectual basis on which the theory is based in light of the developments and developments witnessed by the profession and accounting research and the shift from searching for accounting principles to searching for accounting standards, which aims to develop the contemporary accounting model and identify alternatives to accounting measurement, and that the intellectual framework accounting is based on a set of assumptions, concepts and principles that govern the processes of measurement, recording, summarizing and communicating. examples of this include (the concept of the accounting unit, imposing the unit of monetary measurement, the principle of continuity, the principle of cost, the concept of verification, the principle of continuity, the principle of consistency, the policy of caution, the cost rule). or the market, whichever is less, the accrual basis, the monetary basis, relative importance, the principle of matching revenues with expenses, the principle of objectivity, imposing the stability of the purchasing power of money) and the truth is that most of the concepts and procedures related to practices are closer to customary rules, traditions, or conventions than to scientific principles the nature of the theory can be revealed through the tools of the theory, which are considered a key to knowing how the theory works, and among its tools for application to reach the targeted results, which are used in accounting practices, which means doing something and which are used as a guide to standards, which are the set of techniques, procedures, and customs, and this requires choosing techniques through preferred procedures and customs according to certain circumstances and using them as a guide in setting standards. however, it is clear that the techniques will not give the best results if they do not take into account accounting thought. rather, it must be said that accounting thought must search for the reasons for these practices and interpreting them, especially unstable practices, in order to become part of accounting theory . accounting theory is the basis for evaluating current accounting standards and predicting future accounting standards, by determining the level of consistency of those standards with the specific accounting objectives and concepts, because accounting standards are, in fact, means of achieving accounting objectives. the researchers focused on harmonizing public sector accounting with the adoption of international public sector accounting standards by integrating three main streams that represent the main ideas of the main theories that form the theoretical basis of our research, which are: 1 . -new public administration 2 . -new institutional theory 3 . -the theory of allocated funds american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 30 www.americanjournal.org applying the new public administration system and the new institution theory are among the means that we can rely on in applying international accounting standards for the public sector. as for the allocated funds theory, it is one of the theories that is based on a set of concepts, foundations, general principles, and typical procedures on which government accounting is based . in order to contribute to the development of international economies, for the purpose of serving public interests, to strengthen the accounting profession on a global scale, and to raise the level of commitment to high-quality professional standards, and with the aim of international consensus on these standards, the international federation of accountants, through the international public sector accounting standards board, issued the international public sector accounting standards. general (ipsas) (international public sector accounting standard), which would affect financial reporting in the government sector, which consists of a group of non-profit government units, but seeks to reduce the deficit and expenditures, and as the dominant sector with the power of politics and the level of development that it works to achieve. in light of the conditions of continuous growth in public spending and limited resources, there must be reforms aimed at achieving effectiveness and rationality in public spending by adopting those standards. these units constitute the public sector, which is considered the largest part of the national economy, and collectively they form branches of one institution represented by the state, which is related to the financial lists and statements, which it is required to be issued by government units in a way that meets the requirements for presenting financial statements clearly and accurately by the relevant authorities in the international community, and when these standards are applied, it will be reflected in the contents and details of the financial statements and statements. the first axis: research methodology and previous studies. the second axis: explaining the impact of adopting the standards (ipsas) in developing the performance of government institutions applying the government accounting system and explaining the role of the federal financial supervision office’s contribution in developing the performance of those institutions . the third axis: organizing and preparing a proposed model for the financial statements for the research sample in accordance with the requirements of international accounting standards in the public sector. fourth axis: descriptive analysis, statistical analysis of results, and hypothesis testing. the fifth axis: conclusions and recommendations. the first axis: research methodology and previous studies. first: research methodology: 1 research problem / many studies were directed towards urging public sector units to implement international accounting standards for the public sector, as the international federation of accountants, through the international public sector accounting standards board, adopted the issuance of international accounting standards in the public sector that would affect reporting. financial statements in non-profit government units related to financial statements and statements that are required to be issued by government units in a way that meets the requirements for presenting financial statements clearly and accurately by the relevant authorities in the international community, which encourages the following of standards according to the accrual basis of accounting, which has an impact. it is important and important to improve the quality of financial statements and reports provided by the government accounting system . american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 31 www.americanjournal.org in light of the above, the problem of the study can be reflected in the following question : ((what is the impact of applying international accounting standards in the public sector (government units and institutions), which encourage the following of standards according to the accrual basis of accounting, which would affect the presentation of financial statements in a clear and accurate manner, which will be reflected in the contents and details and improve the quality of the financial lists and statements issued? of the government units and their impact on the activity of regulatory bodies, their contribution, and activating their role in those units ))?. 2 research objectives: a set of objectives have been set that we seek to achieve through this study: a) highlighting the impact of international accounting standards in the public sector and their contribution to developing the work of the supreme audit institutions in the public sector, represented by the federal audit office in the republic of iraq. b) improving and developing the activities of public sector units, while demonstrating the impact of applying international accounting standards for the public sector in achieving transparency and accountability and facilitating the process of integration with the international community. c) work to explain the impact of the shift from applying government accounts prepared on a cash basis to an accrual basis in accordance with international standards for the public sector . 3 the importance of the research: the research derives its importance from the important role played by international public sector accounting standards, which would affect financial reporting in non-profit government units related to financial lists and statements, which require their issuance by government units in a way that meets the data presentation requirements. financial statements in a clear and accurate manner, and when these standards are applied, it will be reflected in the contents and details of the financial lists and statements issued by government units, which encourages following the standards according to the accrual basis of accounting, which has an important and significant impact on improving the quality of the financial statements and reports provided by the government accounting system. in addition, it also affects the activity of the regulatory bodies, their contribution, and the activation of their role in those units. 4 -research methodology: the inductive and deductive approaches were relied upon to prove the hypotheses by studying and extrapolating some previous writings and studies related to the subject of the study, and also by examining the conceptual aspect of those standards and the extent of their conformity with the reality of government accounting disclosure by providing better information to the financial management in the process. decision-making in that sector and its contribution to developing the work and responsibility of the federal financial supervision bureau in the republic of iraq on the performance of government institutions applying the government accounting system in the public sector . 5 methods of collecting data and information/the process of collecting data and information necessary to complete the research consisted of two main aspects : first: the theoretical aspect: the researcher relied on sources, books, and publications issued by research papers, periodicals (arab and foreign), and official internet sites, as well as relevant international standards, laws, and legislation related to the subject of the research . second: the applied (practical) aspect: the analysis and study of the annual financial reports of the activity of the research sample unit and the extent to which they meet the requirements of the international public sector accounting standards (ipsas) were relied upon, in addition to personal interviews with the officials in the wasit health department, including accountants, auditors, and american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 32 www.americanjournal.org directors of health institutions. in addition to the statements, records and accounting documents for the research sample unit, a model for the financial statements was prepared and designed in accordance with the requirements of the aforementioned standards, along with the preparation of a questionnaire model that includes five axes with thirty indicators or questions in order to prove the research hypotheses using the method of statistical analysis. 6 limitations of the study: the limitations of the study were as follows: a) spatial boundaries: the study was limited in its applied aspect to the iraqi environment of the public sector in the government units that apply the decentralized government accounting system for the health sector represented by the wasit governorate health department and all its health institutions and through the annual data and reports prepared by that department that are subject to the control and auditing of the bureau federal financial oversight . b) time limits: the annual financial reports of the research sample unit for the two years (2008-2009) were adopted as the latest data issued and approved by the federal office of financial supervision. second: previous studies: arab studies: 1 al-saidi’s study ahmed youssef (2017), the title of the study is (the importance of international public accounting standards (ipsas) in disclosing the transparency of financial statements of the public accounting system). the aim of the study was to explain the contributions of international public accounting standards in developing the outputs of the public accounting system to serve... users of those outputs in addition to obtaining the required information necessary to cover the deficit . 2 study by nihad-hussein ahmed ali (2018), the title of the study (the reflection of the adoption of international accounting standards for the public sector on the quality of financial reporting and performance evaluation in iraqi government units), where the study aims to urge government units to adopt the accrual basis in accordance with international standards for the public sector. instead of relying on a monetary basis, because it has an impact on the quality of financial reporting, achieving transparency and accountability, and facilitating integration with the international community . 3 -study by ali hatab abd ali (2020), the title of the study (adopting international accounting standards for the public sector and the extent of their contribution to the governance of government units), and the aim of the study is to demonstrate the impact of adopting international accounting standards for the public sector on the validity of accounting treatments and presentation of the financial statements of public sector units. the application of the accrual basis of accounting and its contribution to strengthening governance principles through the consistency of accounting treatments and disclosures that achieve transparency in the management and control of public funds and the availability of foreign studies : 1 study (legenkova, 2016), the study is entitled “international public sector accounting standards implementation in the russian federation” where the study aims to explain the differences between the government standards adopted by the russian ministry of finance and international accounting standards, in addition to verifying the impact of (ipsas) on reliability and credibility. -2 study (kartiko, et al, 2018), the study entitled (measuring accrual-based ipsas implementation and its relationship to central government fiscal transparency) (measuring the implementation of accrualbased international public sector accounting standards and its relationship to the financial transparency of the central government), the study aimed to demonstrate the level of implementation of a sample american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 33 www.americanjournal.org of (77) central governments (from 2008 to 2015) of the international public sector accounting standards used for the accrual basis, while indicating the level of implementation of those standards for (18) member states of the economic cooperation organization. and development, in addition to the 59 nonmember states of that organization, while testing measures related to the financial transparency of the central government . -3 study (ballesteros and bisogno, 2020), the study is entitled (public sector accounting reforms and the quality of governance) (public sector accounting reforms and the quality of governance), where the study aimed to improve public financial management and the quality of governance by clarifying the role public sector accounting reforms, as it was investigated in a sample of member countries of the organization for economic cooperation and development, which rely on international public sector accounting standards that apply the accrual basis . -4 study ((ademola, et. al, 2020) study title (international public sector accounting standards (ipsas) adoption and implementation in nigerian public sector)) (applying international public sector accounting standards (ipsas) and their implementation in the nigerian public sector), as it aims the study aims to evaluate the relationship between international public sector accounting standards and the quality of financial reporting in nigeria . in light of the above, the researcher believes that previous studies focused on the necessity of adopting international publications and standards with the aim of improving the performance of government units that use the government accounting system due to the presence of deficiencies in the government accounting system in iraq, which is based on the cash basis and the modified cash basis, as well as the laws and legislation that govern this system and the need to develop it. by relying on these standards, the current study is considered complementary to previous studies in terms of developing the government accounting system to suit the requirements of the international public sector accounting standards (ipsas), and this study in general focused, with a different approach, on the most important points that affect the achievement of the main goal of the research is to shed light on the nature of the indicators and guidelines established by international accounting standards in the public sector and their impact on developing the work of the supreme audit institutions represented by the federal audit office and their impact on the performance of government institutions implementing the government accounting system in the republic of iraq accountability tools for performance. the second axis: explaining the impact of adopting the standards (ipsas) in developing the performance of government institutions applying the government accounting system and explaining the role of the federal financial supervision office’s contribution in developing the performance of those institutions . 1the concept of international accounting standards / in order to develop the accounting profession and make it keep pace with economic developments and major changes in the field of business, and the multiplicity and differences in international and local accounting practices lead to difficulties in making decisions in its various forms, as well as difficulty in making comparisons between companies and economic units, and thus accounting has a major role in advancing the process of economic development of countries, as this is done through the issuance of unified international standards that regulate accounting work, because they give instructions and treatments for developing the accounting profession. therefore, standards can be considered an honest and conscious translation of the level of thought available with all its elements of goals, hypotheses, concepts and principles. scientific (al-shirazi, 1990: 123). american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 34 www.americanjournal.org abu ghazaleh states in this regard: “the level of economic progress is reflected in the task and function of formulating accounting standards. there are economically advanced countries that have advanced accounting systems, which in turn is reflected in the development of the accounting profession, through developing the formulation of their accounting standards and preparing high-level financial reports.” however, in countries that have a non-advanced economic level, or are characterized by slow economic growth, the likelihood of the importance of issuing and developing such standards is slim, which reflects on the importance of preparing financial reports, which may include useful information for users of those reports.” (abu ghazaleh (1997: 6-7). (salloum and nouri) defined it from the accounting aspect as (the basic guide for measuring operations, events and circumstances that would affect the financial position of the unit and the result of its work, from communicating information to its beneficiaries). (salloum and nouri, 2009: 12). as for accounting standards in the public sector, they can be defined as (general guidelines that lead to rationalizing and organizing accounting work in government units) (minh, 2014: 405). the researcher believes that the accounting standard in general is (a standard, model, tool or general guidelines that represent solutions that have been formulated and circulated through studying the problems that occurred in practical accounting practices and identifying their causes through which description, measurement, comparison and accounting compatibility are achieved at the local and international levels in practices. and accounting applications, that is, achieving similar levels of disclosure and measurement from one country to another, and these must be agreed upon. until the current period, the international accounting standards board has issued (42) accounting standards on the accrual basis and one standard on the cash basis. 2 -the importance, benefits or advantages of applying ipsas standards / the importance of international accounting standards lies in achieving compatibility of accounting policies at the international level through unifying the preparation and presentation of financial statements and through modernization of accounting systems and working to improve the quality of government financial reporting, and adopting a global accounting language. one that will ensure its suitability, efficiency, understanding, reliability, timeliness, neutrality, comparability, transparency and accountability, leading to a qualitative change in accounting information and reports that will enhance confidence and empower investors and other users of accounting information around the world by providing guidance and direction to accounting professionals. in order to improve the quality of financial information and achieve full disclosure of the activity of public sector units (ahmad & khan, 2010:41). 3 -the experiences of some countries in switching to the accrual basis of accounting under ipsas / the global financial crisis demonstrated the inability of countries to face their obligations and perform their services in the required manner, and the main reason behind this was the lack of transparency, its fragility, and the lack of clarity in public finances, in addition to the weakness from which it suffers. good financial management rules, which affected the state’s ability to achieve accountability effectively. as a result, states were forced to reconsider their financial, accounting, and economic systems in a way that makes them more transparent. that is, the need for reforms in the public sector increased, by following the accrual basis that it is considered the first stage of reform. (jabi and meliani, 2017: 141). ipsas was adopted by many countries around the world, and new zealand was the first to adopt and implement it, followed by australia, the united kingdom, sweden and other countries. recently, some american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 35 www.americanjournal.org arab countries, such as kuwait, morocco, and jordan, began to shift to the accrual basis according to ipsas. (jabi, 2017: 684). many countries around the world have moved towards accrual accounting due to the benefits it provides, such as increased transparency and accountability, as well as assistance in decision-making. in new zealand, we find that financial reports are prepared at different levels according to the degree of spending, and biro points out that the experience new zealand is one of the exceptional experiences, through the solutions it has found. (birro, 2010: 16).. 4 statement of the impact of adopting the international public sector accounting standards (ipsas) in developing the performance of government institutions applying the government accounting system/the occurrence of financial crises, with the observation of collapse in some international companies, is caused by the failure to display information related to financial conditions with a lack of skill and experience in the field of accounting and oversight for some employees working in the public sector, which results in improper accounting and oversight practices, which called for the necessity of relying on the international public sector accounting standards (ipsas), which are related to the intellectual aspect of accounting through its interest in the process of disclosure, accountability, oversight, and transparency, while developing treatments and procedures. what is required is by benefiting from the experiences of some countries that rely on these standards, with the possibility of determining methods of recognition and measurement, while gaining experience and skill in detecting and reducing corruption phenomena for the purpose of preserving public funds, including public funds and property. therefore, to demonstrate the role of the ipsas standards in achieving the following : first: the relationship of (ipsas) to accountability, preserving public money, and reducing corruption/ cases of fraud and violations are based on misleading financial reports that do not reflect the financial reality of government units, and in order to ensure the use of state resources and achieve transparency while being subject to accountability that achieves the public interest through the preparation of financial reports clear and transparent presentation of accurate financial information that reflects the reality of the financial situation (salia and atuilik, 2018: 20-22 ( second: the relationship of (ipsas) to the principle of integrity and transparency/ in order to achieve the principle of integrity in the dealings of government employees and officials through their use of ethical principles and values in performing their work, they must be impartial in their actions, especially in the field of taking accounting procedures and treatments, and they must be impartial. it was not affected by the rule of personal diligence, and if we adhere to the international public sector accounting standards (ipsas), we guarantee that impartiality in the actions of these employees, even though they reflect the reality of the events, transactions, and activities of the government units in which they work. (jensen. 2018:3-4( therefore, adopting ipsas and implementing it properly has a major role in reducing cases of manipulation of public financial resources and in combating corruption, which threatens the legitimacy and authority of the state and also reduces the amount of money available to finance public services. therefore, adopting the standards is an important step in the global struggle against... government corruption.(jegede,at.al,2017:4( third: the role of (ipsas) in developing the accounting and supervisory system/ in order to restore confidence in the financial reports issued and their accounting information, quality standards must be adopted in the financial and accounting fields through the implementation of the international public sector accounting standards (ipsas) while relying on accounting information that meets the qualitative characteristics in preparing financial reports to ensure the application of transparency in american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 36 www.americanjournal.org how public resources are managed and the disclosure of reliable and comparable data to be a basis for the process of monitoring performance and accountability. therefore, both the international federation of accountants (ifac) and the chartered institute of public accounting and finance (ipfa) recommended the necessity of preparing financial statements for government units. according to standards that are considered a recognized accounting reference, with the ability to compare and achieve disclosure while improving the quality and quality of financial reports in the public sector. (ifac & cipfa, 2014: 13-14 ( the decentralized government accounting system in iraq relies on the cash basis in recording accounting operations, which means not paying attention to accruals and advances of expenses and revenues because it relies on actual cash flows, which makes the information provided in the financial reports inaccurate and incomplete. (fee, 2007:9 ( therefore, when applying these standards, it will contribute to strengthening the accounting and control aspect and will also help in developing internal control systems because they help fight financial and administrative corruption by preventing the occurrence of deliberate errors and deviations and reducing them as much as possible, while being impartial in following the treatments contained in the standards, without being diligent or expressing an opinion on them. (mikhail, 2005:83( from the researcher’s point of view, integrity, transparency, accountability, and oversight of public funds are among the most important measures achieved in applying the international public sector accounting standards (ipsas), which rely on the foundations of recognition, measurement, presentation, and disclosure, which are consistent with achieving the goals required for government units by providing guidance to governments regarding improving their levels. finance, which called for the international federation of accountants to submit the required recommendations to adopt these standards to confront financial crises. -5 statement of the role of the federal financial supervision bureau in developing the performance of government institutions that implement the government accounting system. the federal financial supervision bureau in the republic of iraq is considered a financial and administrative independent body and has a legal personality. it represents the highest financial oversight body linked to the iraqi council of representatives, which performs the role of oversight of the legislative authority over the executive authority, as it undertakes oversight of public funds wherever they exist by monitoring the work of entities subject to its scope of control and evaluating the performance of those entities throughout iraq in order to improve their status, in accordance with its own effective law no. (31) of 2011 (amended) and other applicable laws. with all impartiality, objectivity and high professionalism, it is considered one of the leading bodies in protecting public money from waste, loss and misuse, detecting cases of fraud and manipulation, combating financial and administrative corruption and fighting it to achieve accountability and transparency in work and oversight, applying rules and standards in the areas of oversight and actively contributing to supporting the national economy and building a new iraq. its administration is based on financial and economic foundations and solid and established scientific and legal rules, and its contribution also to reforming the financial, administrative and economic systems of the general administration of the state, and in accordance with paragraph four of article (4) of its aforementioned law, which stipulates (publishing accounting and auditing systems based on local and international standards and improving the rules and the standards applicable to management and accounting on an ongoing basis) as well as according to paragraph five of the same article and law above, which stipulates (developing the professions of accounting and auditing and american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 37 www.americanjournal.org accounting systems and raising the level of accounting and control performance of entities subject to supervision). (federal financial supervision office www.d-raqaba-m.ig( one of the objectives of the bureau is to work to encourage the adoption and application of international accounting standards in the public sector, because they affect the presentation of the revenue and expenditure accounts in a real way and also show the assets and liabilities accounts in detail and then correctly express the result of the activity of government units and their financial position . therefore, from the researcher’s point of view, the application of the international public sector accounting standards (ipsas) has an impact on the performance of the government accounting system and its contribution to activating the role of the federal financial supervision bureau in the republic of iraq to achieve its goals, because the current financial statements of local government units do not report the reality of the activity. these units, their financial position and cash flow, make it difficult to properly evaluate the performance of government units with the aim of holding them accountable and addressing their shortcomings. the third axis: organizing and preparing a proposed model for the financial statements for the research sample in accordance with the requirements of international accounting standards in the public sector. financial statements and reports are a result that reflects the image of the work and activities carried out by government units or the entire state during a certain period, as the quality of these lists and reports confirms the credibility, suitability and accuracy of the information disclosed to users, and in a way that makes it a language of communication and understanding that ensures reassurance for all relevant parties, in particular when they are prepared in accordance with international standards, this makes governments seek to make them characterized by high quality. therefore, this axis will include a field study on the reality of the financial statements and reports and the government accounting system in iraq, based on personal interviews with officials of the wasit health department, which is considered one of the units of the ministry of health in the republic of iraq (the research sample) and some of the relevant employees. the reality of the accounting records and books was also examined by using the financial statements of that department for the two years (2008-2009) as the latest data issued and approved by the federal office of financial supervision at the time of preparing the research due to the presence of technical errors. (financial and accounting) turned into the department’s inability to prepare and issue them for subsequent years, as the focus was on the most important points of difference and changes between the financial statements and reports in the government accounting system for the research sample and comparing them with the required organization of those lists in the international government accounting standards for the public sector, and accordingly it was done. preparing a proposed model for the financial statements and reports of the wasit health department in light of those standards, noting that the aforementioned department applies the decentralized government accounting system as a non-profit service unit, in accordance with the instructions of the iraqi ministry of finance, which focuses on issuing financial statements such as the cash flow and financial position lists, in addition to issuing monthly statements. and financial tables, such as the bank’s reconciliation statement, trial balances, and tables of revenues and expenses, and the importance of the final financial statements and reports, which are considered a basic means of disclosure and reporting for government units, and the final statements and accounts of the wasit health department american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 38 www.americanjournal.org do not differ from the rest of the non-profit government units in terms of their components and the quality of information and data they contain, which it includes the following: 1 statement of financial position 2 the final account for implementing the budget 3 cash flow statement 4 disclosure of the balances of investment budget projects 5 analytical statements include a statement of advances accounts/a statement of debit personal accounts, and also include a statement of trust accounts/a statement of creditable personal accounts . on this basis, the financial statements for the two years of the research sample (2008-2009) will be presented and dealt with as on december 31 of both years, and through organizing and preparing a proposed model for the financial statements of the wasit health department in light of international accounting standards in the public sector, for the sake of comparison and noting the differences. and changes between accounting treatments in the government sector and treatments in accordance with international accounting standards in the public sector through a presentation of accounting policies and through the submission of proposed analytical financial statement models for that department . below are the differences and changes between the two accounting treatments, as follows: first: accounting policies/international accounting standards in the public sector dealt with financial statements on the basis of the accounting system according to the accrual basis, in contrast to the government financial accounting system, which applies the system according to the cash basis. therefore, the impact of the changes on the financial statements: the financial statement information is in accordance with international standards. it is greater when presented under the items (assets and liabilities) than the information provided in the current lists according to the government accounting system. second: changes in treatments / there are changes in accounting treatments regarding the preparation of a statement of financial position in accordance with international accounting standards in the public sector. we note the current lists (used in the current government system). fixed assets are recorded and classified as expenses, with the full amount charged when purchasing the asset. as for the lists according to... in international standards, purchase costs are distributed over the life of the purchased asset, with work to capitalize the costs of fixed assets and include them in the statement of financial position. therefore, the impact of the changes will be on the financial statements. in the event of relying on international financial standards, expenses will be reduced and the value of assets will increase . while in for-profit institutions, the presentation is based on liquidity and providing reliable and more appropriate information for those institutions, and also in accordance with international standards, the inventory is evaluated and proven and recorded in the records as costs and what is used from it during the year and what remains at the end of the year is recorded as inventory within the current assets, and as for the impact of this on the lists financial position, in the event of relying on international financial standards, expenses will be reduced by the value of the stock of unused materials, with a note in the statement of financial position that an increase in current assets appears, and the change also appears on the basis of displaying the items of the statement of financial position, the current statements, as the items of the statement of financial position are shown. on the basis of the priority of cash liquidity, while the lists are in accordance with international standards, where the statement of financial position is presented on the basis of current and non-current, from which we notice the impact of the changes american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 39 www.americanjournal.org on the financial statements. in the event of relying on international financial standards, the items of assets and liabilities will be classified into current and non-current. changes also appear in accounting treatments regarding recording capital assets and their disappearance. we notice the buildings of the wasit health department and other buildings affiliated with it, cars, equipment, etc., as these assets are recorded under the expenditures item in the year of purchase, in addition to there is a difference in evaluating and proving the stock of commodity supplies that are installed. in the accounting system. first: prepare a statement of financial position in accordance with (ipsas ): according to international accounting standards in the public sector, assets and liabilities must be classified on a current and non-current basis and separately in the statement of financial position in non-profit units, as a separation is made between current and non-current assets, and it is considered current if the asset is expected to be consumed or sold during the financial year. likewise, when it is cash that has not been used or exchanged to settle a specific obligation for a period of twelve months from the date of the report, and other assets less than that are considered non-current. while current and non-current liabilities are separated when the liability is classified as current if it is expected to be settled in the operational cycle within a period of (12) months after the report date, other liabilities are classified as non-current liabilities. below is a proposed model for preparing a statement of the financial position of the wasit health department according to (ipsas( assets current assets account name current year (2009) previous year (2008 ) the impact on financial statements cash and cash equivalents 10965092424 4784557411 they are considered current assets and there is nothing classified as non-current assets because the economic unit does not have the freedom to dispose of them within a period of twelve months from preparing the financial statements, noting that cash in banks was added to the investment budget for the same year. accounts receivable 17459836853 17289582403 it represents the merger of the advances and debtors accounts, except that the two-year debtors account, amounting to (59,513,400) was excluded, because it represents the revenues generated by the hospitals during the year 2004, which were deposited in the current account of the wasit governorate treasury and recorded in this account on its date, and which had not been settled during the previous years, so it will be returned. classifying them as non-current receivables, and the permanent advances that appeared repeatedly during the two years in the financial statements, amounting to (432268), were excluded, as there is no advances account for the investment budget for the two years in question in order to add them to the receivables account. inventory 596109867 984942431 the inventory account balance did not appear in the financial position, but was extracted through the inventory lists attached to the financial statements and subtracted from the american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 40 www.americanjournal.org prepared by the researcher second: preparing a statement of financial position: the statement includes the total items of expenses and the total items of revenues, which are recognized and disclosed, as well as their nature, amount, and all details during the financial period that includes the surplus or deficit, as expenses are classified according to what expenses are classified . commodity supplies account for each year of the research sample. non-current assets accounts receivable 59945668 59945668 the amount represents the amount of the receivables account that has not been settled in previous years, as well as the permanent advances that appear repeatedly in the financial statements. other financial assets there is no frozen cash in banks that has appeared repeatedly during previous years the value of assets subject to extinction 9796025984 7738376424 the amount was recorded through the fixed assets register liabilities current liabilities payables 2201841180 1166052059 it represents the merging of the trusts and creditors accounts, as there are no recurring amounts from previous years that were excluded, and classified as payables within non-current liabilities, with a note that the returned employee salary accounts were excluded and classified within employee benefits for the two years) and were classified as non-current liabilities in addition to adding trusts and creditors to the investment budget account. employee benefits 327942900 294696984 separating the amount from the creditors account and representing the returned salaries of employees lands 1500000000 1500000000 the amount is default non-current liabilities payables the amounts excluded from the trusts and creditors accounts are classified as recurrent for several years and are considered long-term obligations capital contributed by the government unit on 12/31/ 37843015736 16145149605 the amount results from collecting the balance at the beginning of the period of the current account of the accounting department, adding the amounts added during the year as an enhancement to the balance, while subtracting the balance at the end of the period from the account of the accounting department. reserves (accumulated consumption) 2358136733 1078399228 extracted from consumption table surplus/deficit ) 57683671575) (78014001561 ) they are extracted from the statement of financial position table american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 41 www.americanjournal.org below is a table showing the preparation of a model to state the financial performance of the wasit health department in accordance with international accounting standards in the public sector: -revenues: account name current year (2009) previous year (2008 ) the impact on financial statements taxes 87043155 885785178 we did not affect the financial statements fees and fines 1838300 2353500 we did not affect the financial statements other income 1496345351 1965391804 investment budget revenues have been integrated expenses: account name current year (2009) previous year (2008 ) the impact on financial statements employee salaries, wages and benefits amount 72248334219 49251570939 we did not affect the financial statements depreciation expense relates to consumption for the year 1279737505 1078399228 extracted from asset depreciation tables low consumption 798450300 extracted from asset depreciation tables other expenses 9408781590 6071156643 the consumption of commodity supplies was combined with service supplies, with the maintenance of books and records, with other expenses, with what was spent in the investment budget, with amounts transferred from the current accounting department. prepared by the researcher the researcher believes that, through what was previously discussed in terms of the presentation of the list and statement of the financial position for the two years (2009-2008) of the department (the research sample), we conclude from the financial statements prepared in accordance with (ipsas) standards, while confirming what was stated in the research hypotheses (which were dealt with in the axis of statistical analysis). , about affecting the presentation of financial statements in a clear and accurate manner, which will be reflected in the contents and details and improve the quality of the financial lists and statements issued by government units, in addition to its impact on the financial reports that show a fair and honest picture of both the financial position and the results of the activity, as well as the lack of conformity with the requirements of international standards. with the reality of the government accounting system, since the approved accounting basis is the cash basis, while international standards american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 42 www.americanjournal.org are the accrual basis, and it affects the process of evaluating the performance of government units, in a correct manner, with the aim of holding them accountable and addressing their deficiencies, ensuring transparency and accountability, and preventing iraq’s integration with the international community, especially with international organizations. fourth axis: descriptive analysis, statistical analysis of results, and hypothesis testing. this axis deals with a detailed presentation of the procedures of the field study carried out by the student researcher to implement the study and achieve its objectives. a questionnaire form was prepared and distributed to the sample population represented by all employees of departments, divisions and accounting and auditing units affiliated with all health institutions belonging to the wasit health department (the research sample). the questionnaire consists of three main sections. the first section consists of an introductory introduction to the study, its tool, its content, ensuring the confidentiality, protection and storage of data, and instructions for using the questionnaire. while the second section (personal data) expresses the demographic variables of the study sample members, which are (gender, age, educational qualification, scientific specialization, job position, and number of years of service). the third section expresses the variables of the study through the axes and paragraphs that measure them. this section consists of (30) paragraphs distributed over five main axes with the aim of studying the impact of the future application of international accounting standards in the public sector in developing the performance of government institutions implementing the government accounting system and their contribution to activating the role of the supreme regulatory bodies in the republic of iraq, in addition to clarifying how to design the study tool, verify its validity and stability, and conclude results that achieve the goal of the study, by answering the study questions, testing its hypotheses according to appropriate statistical treatment, and then interpreting and discussing these results according to what is reached. by presenting and analyzing the study data through studying frequencies, the relative importance index, arithmetic means, standard deviations, and testing the correlation and influence coefficient for the main research hypotheses, as shown below: first the first main hypothesis: “there is a correlation and impact of the variable of applying the requirements of public sector accounting standards (ipsas) in government units with the variable of changing the basis of accounting measurement according to international accounting standards for the public sector in government units”. secondly the second main hypothesis: “there was a correlation and effect of the variable of applying the requirements of public sector accounting standards (ipsas) in government units with the variable of applying international accounting standards for the public sector in government units to achieve transparency and accountability”. third the third main hypothesis: “there is a correlation and impact of the variable of applying the requirements of public sector accounting standards (ipsas) in government units with the variable of applying international public sector accounting standards in government units on the development and improvement of government performance evaluation”. fourth the fourth main hypothesis: “there is a correlation and impact of the variable of applying the requirements of public sector accounting standards (ipsas) in government units with the variable of applying international accounting standards for the public sector in government units that leads to the integration of the iraqi government with international organizations ”. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 43 www.americanjournal.org the fifth axis: conclusions and recommendations first: conclusions: 1 the government accounting system relies on the cash basis in recognizing financial transactions and events, which are represented by the elements of the financial statements consisting of payments, receipts, and cash balances, while the ipsas standards rely on the accrual basis of accounting, which provides useful actual information that helps in strengthening the oversight of government financial performance while ensuring obtaining accountability and transparency for the allocations contained in the general budget while strengthening the planning process for the years subsequent to that budget, and this is what was proven through the statistical results that the study reached to prove the hypotheses of the existence of a direct positive significant correlation and influence relationship through simple regression analysis of the variables of implementing those requirements, which it has a relationship with the variable of changing the basis of accounting measurement, and thus we accept the main (first) hypothesis. 2 the international public sector accounting standards (ipsas) are considered and adopting them leads to the preparation of high-quality financial statements and reports and has the ability to compare those lists while ensuring credibility and influencing users’ decisions. this is what was proven through the statistical results that the study reached to prove the hypotheses. there is a positive positive correlation and influence relationship through simple regression analysis of the variables of implementing these requirements, which achieves transparency, accountability, and improves the performance evaluation process. thus, we accept the main hypotheses (second and third). 3 the ipsas standards adopted on the basis of entitlement support good planning for budget allocations, so it will put the government in front of the responsibility of preserving public funds and working to adapt the ipsas standards to the iraqi environment and benefit from the experiences of countries whose environment is close to the iraqi environment and the integration of the iraqi government with international organizations, and this is what was proven through the statistical results that the study reached to prove the hypotheses of the existence of a significant, positive, positive correlation and influence relationship through simple regression analysis of the variables of implementing those requirements, which are related to the variable of the integration of the iraqi government with international organizations. thus, we accept the main hypothesis (fourth). 4the financial information provided by the current accounting system and the method of disclosing it shows that this information, the progress of affairs and the facts of the operations carried out by the state, is only accessed by a specific number of users and is not easily accessible to the public, and it is also unable to reconcile the objectives of accounting information and the requirements of the ipsas standards, in contrast to the interest of government accounting in its general form, which aims to provide financial data and information to the government while evaluating the performance of government units, determining the degree of economic growth, setting performance indicators while determining the validity of those units in achieving their established goals and imposing oversight and rulings on public money. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 44 www.americanjournal.org sources and references: arabic references 1 al-saidi, ahmed youssef (2017) “the importance of international public accounting standards (ipsas) in disclosing the transparency of financial statements for public accounting systems,” journal of economics and human development algeria, volume (8), issue (1): 335-348. 2 nihad-hussein ahmed ali (2018), doctoral thesis submitted to the university of baghdad / college of administration and economics entitled (the reflection of the adoption of international accounting standards for the public sector on the quality of financial reporting and performance evaluation in iraqi government units). 3 -sharba, ali hatab abdul ali (2020) “adopting international accounting standards for the public sector and the extent of their contribution to the governance of government units,” a thesis submitted to obtain a doctoral degree to college of administration and economics al-mustansiriya university / baghdad. 4 -al-shirazi, abbas mahdi (1990) “accounting theory”, first edition, that al salasil printing and publishing, kuwait . 5 bu ghazaleh, talal (1997) “towards the globalization of the accounting profession,” united arab emirates university. http://www.tagog.com./data. 6 al-mahaini and salloum, muhammad khaled and hassan abdel karim (2009) “implementation of the general budget and its relationship to the government accounting system,” journal of administration and economics, no. 65. 7 gabi and miliani, amina hanaa and hakim (2017) “the importance of shifting from the cash basis to the accrual basis of accounting in light of the modernization of public accounting the experience of the palestinian municipality of ramallah as an example,” journal of economic and financial studies, no. 10, part 2, al-shaheed university, algeria . 8perrault, gerard (2010) “the readiness of united nations system organizations for international public sector accounting standards” joint inspection unit, united nations, geneva. 9 mikhail, ashraf hanna, 2005, “auditing accounts within the framework of a corporate governance system,” research and working papers of the first arab conference on internal auditing within the framework of corporate governance/cairo. foreign references: 1.legenkova, margarita (2016)," international public sector accounting standards implementation in the russian federation", international journal of economics and financial issues, vol 6, issue 4, p(13041309). 2. kartiko ,sigit wahyu : rossieta ,hilda :martain,dwi: and wahyuni, trisacti,2018,"measuring accrual-based (ipsas)implementation and its relationship to central government fiscal transparency", bar,rio de janeiro, rj ,brazil, vol.(15),no(4). 3.ballesteros beatriz cuadrado, and bisogno, and bisogno, marco ,2020 ,public sector accounting reforms and the quality of governance , journal ,public money & management. 4. ademola, abimbola o, ben-caleb , e, madugba, joseph u, adegboyegun, adekunle e & eluyela , f, damilola ,2020,international public sector accounting standards (ipsas) adoption and implemenation in nigerian public sector, international journal of financial research , vol ,(11)no (1):434-446. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 45 www.americanjournal.org 5.mutusva, sidned, 2014," a feasibility study on the adoption of accrual based ipsas and its effect on government financial reporting": a cas of attorney general s office, dissertation submitted to midlands state university, as partial fulfillment of the bachelor of commerce in accounting. 6.ahmad , naseem, and khan, nawab, ali, 2010, "global convergence of financial reporting" journal of arts science & commerce , , vol. (1) ,no.(1):1-12. 7.salia ,hussein, and atuilik ,willimas abayaawian,2018,"the implementation of international public sector accounting standards in liberia analysis of the benefits and challenges" , european journal of business,economics and accountancy ,vol.(6),no.(6):17-31. 8. jensen, gwenda r, 2018, financial transparencys role with respect to financial sustainability : "how international publie sector accounting standards can help governments to keep their promises, panel 19: 11th -13 th april" , public sector financial sustainability acritical issue for the stakeholders,www. researchgate .net –publication-322722305. 9.jegede , abimbola kolawole, a .adegke ,and olufunke ,a.oyeleye, 2017," impact of international public sector accounting standards can (ipsas) adoption on financial accountability in selected local governments of oyo state" , nigeria, asian journal of economics ,business and accounting. 10.fee ( 2007 ), federation des experts comp tables europeans, “accrual accounting in the public sector ” a paper from the fee public sector committeen 11. fee ( 2007 ), federation des experts comp tables europeans, 12. “accrual accounting in the public sector ” a paper from the fee public sector committeen 13.wwwraqaba.org-glossary : htt . american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 68 www.americanjournal.org developing countries can benefit from free trade zones under the challenges of the economic system researcher: ziad sabah ali zeaad744@gmail.com zelal zein alia baghdad university al rasheed university college zelalkazem84@gmail.com a b s t r a c t k e y w o r d s many countries have sought to establish free trade areas, as a result of their economic importance in diversifying sources of financial revenues, especially in rentier countries, in light of the trend towards the capitalist economy in light of what has been produced by economic globalization, in addition to that many countries have tended to establish trade areas to support their economy , especially in the field of attracting foreign investments for these areas, using them to transfer modern technology, operate the national workers of the countries that have established those areas, and adopting their products in meeting the needs of the local market, as the idea of establishing free trade areas as a tool for development through the allocation of specific sites in which application is applied various special laws and systems are characterized by exemptions and facilities that qualify them to be investment attractions to develop export industries and international trade exchanges. economic diversification, revitalization of financial revenue sources. introduction free trade areas work as an important mechanism of increasing national product, as well as creating new job opportunities because of its many advantages, the most important of which is the direct link to the outside world and the provision of complete land the goods are entered and exiting, which allows a great deal of freedom in transactions that attract investments, as international trade has shown the idea of free trade areas a time ago to stimulate international commercial activities as these free zones were mainly dependent on trade and saddened goods and with the development of modern economic methods they appeared new advanced forms of free zones, as they depend on other activities that are not dependent on trade and storage, such as free service areas and industrial free zones american journal of business management, economics and banking volume 22 march 2024 p a g e | 69 www.americanjournal.org research problem: the problem of research with political and economic obstacles facing the establishment of free trade areas, which was greatly affected by the political and economic changes that they have gone through, which possesses many ingredients, such as the geographical location, the market, natural resources, and human forces as well as incentives, and facilities, but they are on the other hand, i faced many political, economic, and administrative obstacles, and to indicate the importance of free trade areas and their capabilities, and the challenges facing these areas in the light of the increasing procedures for attracting foreign investment . the goal of the research: the research aims to highlight the free trade areas as one of the important pillars that most of the economies of developed countries and some developing countries, with the aim of achieving benefits for the economies of developing countries and creating sources as an additional means of development and stimulating revenue sources. research hypothesis: the research hypothesis is in free trade areas that have a positive role in stimulating financial revenue sources in light of the current economic challenges indirectly. research methodology: the researcher relied on the inductive approach and the descriptive analytical method to study the possibility of developing countries from free trade areas in light of the challenges of the economic system. research structure: the research is distributed between two topics, the first topic dealt with the reality and the economic challenges facing developing countries. the second topic: international experiences of free trade areas (china as a model). the first topic: the reality and economic challenges facing developing countries developing countries suffer from economic problems related to the gap between the total demand, the general offer and the imbalance in the balance of payments, as well as the inability to diagnose economic crises. the international bank explains these crises as a result of the economic and social accumulations committed by these countries, by delaying structural reforms to address the imbalances of their economies, which led to these problems and narrowed the open fields for the private sector and foreign investment, as it entered into areas that do not agree with the nature of the national economy, which caused the difficulty of competing with the global economy by interfering in determining the level of prices and wages and established protectionist measures for the local industry (al -maksoui and al -haidari, 16: 2015). first: the reality of the economies of developing countries the global economy in 2019 faced many challenges that negatively affected economic growth through its low levels of demand in many economic areas, according to trade tensions between the united states and china, which caused a significant decrease in the rate of commercial growth as well as the rate of investment growth in global economies in the basic commodity production sectors affected by mutual protection measures between the two countries, and to face these challenges, the economies of these countries have taken economic and financial measures to advance economic growth, by stimulating local demand by pumping more government investments, as well as adopting american journal of business management, economics and banking volume 22 march 2024 p a g e | 70 www.americanjournal.org monetary policies such as the federal reserve to increase activity economic and the promotion of local consumption, but these measures led to a decrease in the growth rate developing countries recorded it during the previous ten years due to their impact on the negative developments related to the global economic conditions, in addition to the decrease in oil prices, (the unified arab economic report, 2019: 16) and has also been subjected to problems that made it suffer from stagnation or decline in the growth rate as mexico suffered within a year 2019 is an economic stagnation, as chile witnessed political tensions, while argentina witnessed a financial crisis, with which expectations increased with the possibility of its inability to pay its debts, and the crises in south africa worsened the second largest economy in the continent of africa, amid pressure that negatively affected the performance of the mining and industry sectors, the turkish economy was also subjected to a recession against the background of the currency crisis, which lost about a third of its value (the unified arab economic report, 5: 2020). the experiences of the developing countries of free trade areas differ greatly from one country to another, due to their different economic and politics structures and in terms of management and the investment climate of the host country, where there is no ideal model for the free zone or a general model that can be described to measure the success or failure of the free zone, many have been able one of the free zones in some developing countries is to attract flows that are not a few foreign investments, which were varying in terms of size from one region to another, which in turn reflected in achieving significant growth in the economies of the host country and the global economy, including china, taiwan, shannon, jabal ali, dominican, and others where its free zones were able to attract industries characterized by the intensity of capital, modern and advanced technology, and the production processes that require skilled labor and open minds, many developing countries have sought to implement economic reform as a first stage through commercial policies open to the outside world that achieves efficiency with the use of use physical and human resources with high efficiency and achieve integration between them and the countries of the developed world, which contributed to achieving economic benefits through broad production, optimal specialization and division of labor in these countries, and developing countries also went to liberate their foreign trade to followers of the international monetary fund programs and the world bank represented by installation and structural air conditioning programs (al -zubaidi, 45: 2017). second: the problems and challenges that developing countries suffer from the economies of developing countries suffer from obstacles resulting from the interaction between many factors and the participation of these countries in a number of structural problems associated with the size of these countries and the size of their residents, and thus the size of their markets and the weakening of the production base and exposure to the dangers of natural disasters and their dependence on exporting a small group of initial products to obtain currencies and head the local money needed for productive investments is generally limited to foreign exchange currencies, and the local capital needed for productive investments is limited in general, and the base needed to achieve revenues are narrow, as agriculture is the backbone of many economies of developing countries, the main source of population life as well as export sources they are changes in the global commercial environment for agricultural products, including changes in the agricultural agreement by the organization world trade, especially in small developing countries, even if they create opportunities for all countries to benefit from the commercial system based on competition and american journal of business management, economics and banking volume 22 march 2024 p a g e | 71 www.americanjournal.org fairness, some characteristics of developing economies can restrict their ability to benefit from these opportunities, including : 1-external debt in developing countries: the foreign debt in developing countries is about (7.1) trillion dollars in 2017, and this increase is the fastest in accumulating debt size by the amount of the increase that occurred in 2016 by (4%) where table no. (1 shows the size of the debt in developing countries, as it increased as an average annual of (3.011) trillion dollars during the period from (20042018) to about (7,070) trillion dollars for the period (2014-2018). table (1) foreign debt development in developing countries for the period (2004-2020) years average annual the year average annual (trillion dollars) long -term debt % the short -term debt % 2004-2008 3.011 2.358 78.3 653.5 21.7 2008-2013 4.611 3.442 74.7 1167 25.3 2014-2019 7.070 5.185 73.3 1885.4 26.7 2019-2020 4.897 3.661 75.63 1235.3 24.56 source: -1 world bank, international debt statistics, annual report, 2013, 2015, 2017, 2019, 2020. -2 world bank, the little data book on external debt, 2007, p2. -3 world bank, the little data book on external debt, 2009, p2. the above table indicates that the volume of external debt for countries is a long-term debt if the long-term debts are valued during the period (2014-2018) about (5185) billion dollars, at a rate of (73.3%) if the value of short-term debt is about (1885.4) billion a dollar rate (26.7%), and this is due to the desire of developing countries for these loans, which are available to obtain long -term loans, but they are forced in the event that it is not possible to obtain long -term loans, especially in light of the strictness in the conditional procedures by international institutions as they resort to short -term loans (world, international debt statistics, 2017). as for the accumulation of external debt, these trends varied at the cumulative level of external debt in 2018, and as shown in table (2), as the volume of external debt in the countries of africa and the southern desert increased rapidly and continuously more than all other countries, as it increased by (15.5 %) compared to 2016 to reach about (583) billion dollars, and this rise came as a result of the sharp rise in the external borrowing volume of the developing countries, for example, nigeria and south africa if the balance of its external debt increases by (21%) and (29%) on average , as for the north africa and the middle east, if it witnessed a significant increase in its debt balance by (11.7%), and egypt had a share of the increase in the balances of this region, where it witnessed an increase in (23%) in 2017, but in the region east asia and the countries of the pacific ocean have witnessed an increase rate estimated at (9.3%) as an average, in return, the countries of latin america and the caribbean sea witnessed an increase of about (2.5%) during 2017 . american journal of business management, economics and banking volume 22 march 2024 p a g e | 72 www.americanjournal.org table (2)trends at the cumulative level of external debt in the developing countries for the period (2008-2020) billion dollars . the year east asia pacific south asia sub saharan africa middle east and north africa latin america and the caribbean sea 2008 767 324 228 169 715 2010 803 410 283 191 922 2011 1682 460 313 190 1059 2012 2261 566 377 222 1329 2013 2360 580 378 223 1430 2014 2435 605 441 226 1657 2015 1998 643 457 239 1669 2016 2117 624 464 268 1693 2017 2487 707 555 299 1774 2018 2784 730 583 321 1868 2019 2885 733 586 327 1870 2020 2896 735 590 329 1976 source: table from the work of the researcher based on the following data: -world bank, international debt statistics, 2017, 2019, 2020. 2-the deterioration of economic growth rates: the economies of developing countries in the middle east and north africa suffer from economic stagnation. political turmoil in egypt, political and economic stagnation in tunisia, and the escalation of the civil war in syria, has led to the spread of its effects to the two countries adjacent to lebanon and jordan, and the repercussions of the war isis in iraq and syria, which led to the weak economic activity in the developing countries importing oil, and at the same time, the security setbacks, strikes, infrastructure problems, and international sanctions in iran have negatively affected the oil exporting countries. economic growth has reached about (2.8 %) in 2014, then rose to (3.3%) in 2015 and (3.6%) in 2016, with growth in south asia, a modest rate of (4.6%) in 2013, which reflects the weakness in india amid high inflation rates, and the deficit in the current account and the government budget, as regional exports were frequent due to the high external demand and the reduction of the value of the indian rupee. the high economic growth is mainly due to the recovery of the demand for imports from high -income economies and regional investments, and the stability of the macroeconomic economy (world bank report, 2014) . the growth rates in the east asian and the pacific region also witnessed a significant decline due to the repercussions of the corona virus, as china witnessed a decline in growth rates from (6.6%) in 2018 to (6.1%) in 2019, and these countries also witnessed a decrease in the growth rate from (5.2%) in 2018 to (4.7%) in 2019 and to (0.5%) in 2020 (world bank report, 25: 2020). 3global inflation and contraction: data related to inflation, in developed countries, indicates about (4.1%) in 2019 compared to (2%) in 2018 the group of middle east and north africa countries also witnessed a decline in inflation, and if the inflation rate in these countries remains at high levels, reaching about (9%. ), as a result of the weakness of the elasticity of the demand for consumer goods, and in view of the increasing demand for the main consumer goods, it encouraged the decline in the inflation rate in many developed countries to adopt expansionist monetary policies through consecutive discounts in interest rates to stimulate the total demand, but for the inflation rate in the group of developing countries and other emerging market economies, during the year 2019, he american journal of business management, economics and banking volume 22 march 2024 p a g e | 73 www.americanjournal.org recorded the highest increase of about (5%), compared to (8.4%) in 2018, as a reflection of the relative rise in the prices of food commodities that greatly affects relatively consumer goods in those countries as contributed the rise in the global prices of basic commodities in stimulating the levels of total demand in the countries of the group and thus the high inflation rates in which the developing countries represent producing countries for these goods. although the developing countries witnessed an increase in the inflation rate in 2019, the middle east and north africa countries witnessed a decrease in the rate inflation is about (9%) compared to (11%) in 2018, in light of the decrease in oil prices as countries that cause oil, while the association of independent countries and latin american countries recorded relative stability in inflation rates amounted to (4.9%) (arab economic report unified, 8: 2020 ( . the global economy was characterized by contraction in 2020 due to the effects, the measures that were taken to confront the spread of the new corona virus disease, after closing all activities and sectors that are not associated with basic supplies, which affected the entry of individuals and the business sector as a whole, especially on small and medium enterprises, which led to a decrease global production, foreign trade and semi -stopping of aviation between different countries of the world, as well as the rates of resource loss increased, which led to high unemployment rates, especially among young people and groups and inequality as a result of exposure to the destroyed results in the koruna pandemic, as they do not have stable income sources and most of them work in the informal sector without appropriate social coverage, the nature of their work is not allowed as a mechanism to deal with quarantine and the interruption of economic activity that occurred as a result of the spread of the virus, and there has become a rapid movement towards adopting information and communication technologies, digital platforms and modern information provided by governments and companies (arab economic report, 40: 2020). 4-internal and external challenges: developing countries face many challenges, including internal challenges, which are weak services in the financial sector and the lack of funding sources necessary for the requirements of economic development, in addition to the intense allocation in initial production, and the dependence on agriculture and industry, as well as these developing countries for industries, large investments and technology modern, in addition to the difficulty of the political climate that affects economic stability (unified arab economic report, 7: 2004). as for the external challenges, which are called economic globalization, which carry all global economic variables, after the collapse of the socialist system since the beginning of the nineties, the economic theory that adopts the market economy, competition and maximizing the role of the private sector prevailed, and the expansion of trade activity, direct investments and accelerating growth to exchange goods, services and technology use freedom of capital through global economic activities, and facilitating the transmission of workforce, information and commodities money between different countries of the world (student, 166: 2008). developing countries need to avoid fluctuations in prices and the need for external financing to face fluctuations in the balance of their payments necessary to prepare investments at high levels of growth and restore their economic guidelines that reduce poverty and increase production and sustainable development (horizons of the international economy, 17: 2012) exports are of great importance to various countries as a basic corner in the process of growth and advancement of the economies of developing and developed countries alike, as it is one of the american journal of business management, economics and banking volume 22 march 2024 p a g e | 74 www.americanjournal.org components of national income, and that the volume of exports reflects the economic situation of the state because of its clear impact on the trade balance, and it is known that the developed countries are the first in advanced and modern inventions and use their techniques in production and export them to parts of the world. as for developing countries, we notice there is a great disparity in the rates of trade exchanges in their interest, because the global demand for the goods produced by developing countries, most of which are primarily considered primary and raw materials, so the reality of state exports must be promoted developing (al -qahtani : 76 – 77, 2003), and the most important factors for the success of the export process are the main challenge facing the policies of most developing countries is mainly in how to confront force elements in trade and industry to create wealth and satisfy human needs as it transforms them from relying on exporting raw materials to the production and manufacture of industrial goods to increase their effective contribution to dividing international labor. industrial goods also provide better prospects for revenues from exports not only because of the increase in productivity and expansion of production, but also due to achieving greater price stability even with the high volume of exports to avoid the deterioration of trade conditions that thwarted the growth performance in the long run in many countries that depend on the export of primary goods ( aquis, 22: 2008 ( . there are several reasons and challenges that impede the transformation of developing countries into economic emerging countries, including the resource of resources, where resources are important factors that limit the transformation of developing countries into developed countries, as developing countries work in exporting raw materials under the influence of developed countries through the developed countries to establish innovative structure projects, the monetary and financial system with the help of the developed state, and the developing state has returns from excess raw materials that help it to import its needs from developed countries, investing in developing countries and under a real low wage, use advanced technology, and marketing systems that are through the provision of products the developed countries to developing countries, in addition to the external borrowing of developing countries to develop their local industry to provide local industrial requirements, as there is no relative advantage of local industries, which causes a decrease in the surplus in exports, so relying on initial resources exports, its manufactured products and traditional industries, not to mention the use of capital foreign development of unsuccessful commodities such as infrastructure or health and education projects, which is the curriculum that meets with the directions of the world bank for financing development in developing countries (al -kawaz, 11: 2011).. the second topic: international experiences of free trade areas during the past three decades, the world has witnessed many economic and political transformations that led to important results that prompted most of these countries to discuss economic effects with pre -hedging, depending on the appropriate mechanisms to confront potential transformations. the arab countries that have established the free zone, while some countries turned towards establishing and expanding new free zones after these countries touched the success of the success achieved by these regions and the positive and positive effects on their national economy as it was in some arab countries that reached the trade zone. the arab free, as the establishment of this region is the nucleus to create and re -crystallize the idea established by the free zones, and to attract local and foreign investments, the commercial movement is products that have the ability to be in the market for its ability to compete in terms of price and quality in various fields, including industrial, agricultural and american journal of business management, economics and banking volume 22 march 2024 p a g e | 75 www.americanjournal.org service, which are paid by its powers humanity, which provides her with many scientific experiences that i qualified to achieve this, and one of the successful positive models in the field of arab free zones that managed to achieve great results not only at the level of the arab region but at the level of the middle east and matches its results what it is in some european countries. the experience of free zones in the world, which used the imports of free zones to successfully diversify exports and enhance economic growth in private economic areas, which were exposed to many political or economic challenges, as these free zones were the driving force behind the transformation of many countries in the caribbean. including the dominican republic, which carried out the policy of importing alternatives such as the necessary benefits for local production and protecting the local market, which led to specialization in agricultural products and mining, which has taken exports to diversify the sources of income, and thus established the first region in the early seventies of the twentieth century as special economic areas and the government's goal is implementing the free zone approach as a basis for attracting foreign direct investment, generating jobs and transporting technology, and this has led to a growth in the manufacturing sector from (18%) from gdp in the 1970s to (30%), as it helped the country overcome regional growth as well as average growth due to the entry of free trade zones trade into the country (wagener :33, 2017) . first: china's free commercial areas models china has resorted to strengthening its economic policy through the activities of special economic regions to develop and deepen the technological content of industrial exports by encouraging advanced technology industries and providing customs incentives and customs exemptions and strikes for them. in this field, it created free zones for economic and technology (etdzs-aconomic and technology developed zones) they are small -sized areas within open coastal cities (14 cities) that offer distinctive incentives and strikes for technological industries, especially in the field of electronics, production and construction equipment, and parts for export equipment and communications equipment (for a master ,162: 1990) china has achieved significant growth in the past thirty years as a result of successful economic policies, as the government has defined successful strategies for these policies, as special economic areas have been established to attract foreign capital through tax and economic facilities. these areas are usually prepared in the cities of industrial areas or in the areas where technology are in particular active and manufacturing poles have been established for economic areas in the geographical areas operating in china, as great advantages have been achieved for companies operating in these areas, which are close to the main borders of international ports and airports, the goods that can be emptied, and treated. and re -export it without any interference from the customs authorities in the country only and in the case of these commodities, the special economic zone is left to enter the chinese market will be subject to the regular customs bases of companies that operate in these areas, ( bagarotto:66, 2019 ) that will benefit from the high tax benefits such as tax exemptions to manufacture export companies and also allow companies that fail to achieve a profit for not paying taxes, after the company becomes profitable, it can pay the reduced taxes for the next five years, as the region's program and related reforms were gradually launched around the world in various forms, as this is represented the new areas as free commercial areas where the areas that give the state are determined by financial and non -financial incentives in both financial and non -financial incentives, the bureaucratic system to attract foreign companies to invest in them. american journal of business management, economics and banking volume 22 march 2024 p a g e | 76 www.americanjournal.org the policy of economic reform and openness in china was an essential introduction to the system (market socialism) based on the reform mechanisms represented by free economic areas, which were represented by foreign investments and foreign companies. the chinese government has adopted since the beginning of the reform and openness process in 1979, the government adopted a package of procedures and its applications for policies the various that seeks to attract foreign direct investment and on a large scale to accelerate the development of the national economy and accelerate its integration with the global economy to obtain capital, advanced technology and high experience in the various projects implemented by foreign direct investment, and the chinese government has taken multiple means of adaptation of the fdi)) to obtain the highest possible benefits and at the lowest costs, as the best use of investments in it not only fill the need for construction in terms of capital, but also helps to import advanced technology and good administrative experiences among the developed countries, which prompted the wheel of the development of the economy and the progress of science and technology (al -zubaidi, 100: 2008). what china has obtained as a result of its implementation of the technology adaptation policies imported to its economy requires adapting its economic system to foreign investment, as china applies the socialist system while foreign direct investment needs a capitalist system in order to be able to work completely, so the chinese treatment of this situation was to establish areas free economic (private) applies a capitalist market and then working gradually to establish a market economy throughout china, and create and create an appropriate climate for foreign investors who are all granted, whether they invest or prepare to invest in china, increasing interest in this market with huge potentials, so it was focused the policy of economic openness in china, to establish free (private) economic areas in various chinese regions, which is a gateway to entering new foreign investments, innovations, modern technology and advanced expertise, as in these areas that are discovered and then circulated to the rest of the economy (alzarooni, 106: 2012). second: the free zones in china originated the free zones in china is one of the aspects of development in support of the comprehensive development process in itself, through the front and rear connections established by these regions and based on the philosophy of liberalizing trade and economic openness and providing incentives, facilities and exemptions, especially since the world is witnessing an acceleration in the movement of economic variables for the purpose of trade liberalization that was it has the greatest impact in determining the paths of the global future, as the free zones are as transit gates for the global economy, and windows to determine the country's ability to export according to the market economy, as the chinese experience relied on private free zones (sezs) that was established through the application of the open door policy (open door policy at the end of 1978, as four economic regions were created, especially that they are senzhen, and they were (zhuhai and shantou) in the province the city of (xiamen) in the province of (fujian), which is located opposite the island of taiwan on the chinese ground. china has used these four areas to achieve a qualitative leap in export, by taking advantage of the trade and marine business network with hong, taiwan, macau and the rest of the asian countries in the marine range, which contributed to the flow of capital and the provision of advanced production technology, expertise and administrative and technical skills as well the ease of openness to international markets through investments in these countries, as the free zones in china play an american journal of business management, economics and banking volume 22 march 2024 p a g e | 77 www.americanjournal.org important role in economic development, as it is its window to the outside world, and the famous chinese economist (ji chang wei) stated that these areas are somewhat a co -engraved between the regime socialist in china and the capitalist world, and allows the market mechanism and the value of the value to play their role in light of the directing of the socialist plan, and it accommodates positive things and expels the negative aspects of western culture, and according to the leader's theory (ding) that the existence of one country and two systems, the free zones are channels under control between the capitalist economy (in honk konk and taeon) and the socialist economy in the rest of china (abdel hamid: 341, 2006). third: the types of free zones in china 1 -special economic areas (sezs): the economic areas of the latin america and east asia began, in general, with a type of export processing areas (epzs), and based on the resumption of external financing and the promotion of export processing areas usually in the factory, with strict controls that must to take the products export areas (usually more than 80 %) made inside these areas to other foreign countries, this model was prominent export processing areas in many countries, including korea, mauritius, dominican republic, taiwan, vietnam china and bangladesh, ( usman, 100: 2020). these areas were subjected to major changes if private free zones indicate a variety of regions, including free trade areas (ftz), export treatment areas (epz), industrial gardens (ip), economic and technological development areas (etdz), and technology areas (htz), and the areas of innovation for science and technology, the special economic areas are of various advantages, including it is a biological, geological region, protected and organized within the region, and it includes some important jobs, including the private region that operates in the economic zone, especially that is subject to the country governed by liberal economic laws, representing special economic areas with two basic types of benefits, which it partially achieves on the reputation of special economic areas, fixed financial benefits that include innovations and talent mobilization, export development, and exchange income in order to achieve its goals china with special laws and facilities that differ from the rest of the host country regions, especially in the tax, administrative and financial fields, as well as the important differences between these free areas and other regions of china and administrative decentralization that allow investment decisions in free zones outside the state’s plans, and projects in these areas have the right and freedom by taking decisions related to investment, production and marketing, this relative independence is an important factor in attracting foreign investments that seek to achieve the important goals to achieve these areas, and develop production directed to export that has a comparative advantage based on the heavy use of the chinese labor force, by exempting imported inputs that are used in export industries of customs duties on the one hand and providing preferential benefits to these industries on the other hand (ozawa:33,2002) 2etdz: in early 1984, as part of the process of economic openness, the chinese government decided to create economic and technological development areas along the coast, so it is also possible to launch it in the open coastal cities, to play a major role in the issue of economic development as it is the view of the market economy, and the chinese government has decided to develop distinguished policies through which its own areas are granted the right to become independent administration and give freedom to deal with the neighboring regions, and during the period from 1984 to 1988 it was american journal of business management, economics and banking volume 22 march 2024 p a g e | 78 www.americanjournal.org established in dalian (qinhuangdao). tianjin, yantai, qingdao, lianyungang, nantong, shanghai, ningbo, wenzho, fuzhou, guangzzh (wenzho), fuzhou, guangzzh ou), zhanjiang, beihai, and during the 1992-1993 period, 18 debts were createdthen the chinese state council decided to establish the third group, which includes 17 cities of open cities during the period from 2000 to 2002 (6,2004, ho), as the number of economic and technological development areas in china reached about 54 regions distributed to 32 areas in the eastern states, and (9) regions in central china, (13) regions in the western china states, and these areas are relatively small in terms of area and both in coastal cities or open cities and are used as windows on the outside world that play their role in the process of economic openness, attracting capital and increasing exports technological development, these areas have become a driving force for the development process in china . -3 hidzs: in the late 1980s, the chinese authorities agreed to establish a new type of free zones, and the same planning for these areas in 1983 when china decided to develop and develop technological industries in specific regions and cities while giving them advantages and incentives so that they can adjust the industrial structure promised this as a technological revolution. in 1984, the government made its decision to reform the scientific and technological system in china (guangwen: 103, 2003) in 1985, the governmental committee for science and technology presented four axes of the establishment of new and global technological industries, which were to improve infrastructure by the central government, to be in areas of attractive and sensitive, and that the regions are established with small, specialized and advanced projects so that the state provides support for these industries . 4 -hidzs: in the late 1980s, the chinese authorities agreed to create a new type of free zones, and began planning these areas in 1980 when china decided to develop and develop technological industries in specific regions and cities while giving them advantages and incentives so that they can adjust the industrial structure promised this as a technological revolution. in 1984, the government took its decision to reform the scientific and technological system in china (guangwen,:105,2003). in 1985, the governmental committee of science and technology presented four axes to establish complexes for new and global technological industries represented in improving infrastructure by the government central so that it is in areas with attractive and sensitive and the areas arise with small, specialized and advanced projects and the state provides support for these industries. hidz was established in (beijing) in 1988 as there are 54 at the state level in china 25 in the coastal and 29 in the interior, although these hidzs played important roles in the promotion of chinese industries high -tech in general, their performance varies some of these functions, and on equality, the line between these two types of areas may not be clear in these cases. in 2006, the five value was added to beijing and shanghai zhang jiang, nanjing, shi, chenthen) beijing, shanghai changjiang, nanjing, shi, and chenthen) (secretary knowledge network: 2009) . -5 national borders and cooperation areas (beczs): this type of area in northeastern china is located through the limits of the open cities and has been established for the purpose of developing border trade and carrying out operations for re-export, and these areas have formed an important role in the policy of trade development. which china pursued in the process of righteousness, through these areas china has open up to the countries located on its borders, as well as the areas of central asia and the western parts of them, as it does not only develop relations with the border countries of american journal of business management, economics and banking volume 22 march 2024 p a g e | 79 www.americanjournal.org china, but also plays a positive role in the prosperity of the economy in regional regions (chinese knowledge, 2014) . 6exporting areas (epzs) (chinese knowledge, 2014): chinese authorities choose 15 cities such as guangzhou, beijing and dalian to create export processing areas, as they started in 2000 in the three cities and that was established and that was established. the regions are to be special and closed areas that the customs supervise and these areas have been established on specific areas of 2-3 square kilometers and are usually on the borders of economic and technological development areas (etdz) and these areas are characterized by being working according to less bureaucratic methods of export preparation activities, and this may be due to the goods received to these areas enter without adopting the procedures stipulated in the customs system and there are no fees on the goods that will be re exported after the preparation export operations that pass through, and the chinese central government has prepared these areas within a tight fence and control of customs for twenty -four hours to reduce smuggling into the national borders and ensure that these areas carry out the tasks set for them, namely (export promotion, development of processing trade processing department, using foreign investments with greater efficiency and in more effective ways, and developing the national economy), and therefore exemptions are given resutural equipment and raw materials, storage and shipping activities are allowed within these areas (usman :100, 2020). fourth: the role of free zones in attracting foreign investments in china total foreign investments during the period (1985-1988) amounted to (316 million dollars), of which ($ 250) million dollars are flowing from hong kong and macau, at (79.1%) of the total investments, followed by investments flowing from the united states with a value of (20) million dollars and at (6.3%) of the total investments, as most of these investments were the share of the shenchin region, at a value of (196) million dollars, at a rate of (62%) of the total of these investments, followed by xiamen with a value of (65) million dollars, at a rate with a value of (37) million dollars, at a rate of (11.7%), the last of the shanto region, with a value of (18) million dollars, at a rate of (5.7%), and the table (3) shows the source of foreign investments in private areas during the period (1985-1988). table (3) source of foreign investments in the special economic areas for the period (1985-1988) (million dollars) region hong kong macau united states japan other asian western europe and canada total percentage % shench. 164 14 3 11 4 196 62 shanto 16 0 0 2 0 18 5.7 zhai 30 1 2 3 1 37 4.7 xiamen 40 5 3 14 3 65 20.6 total 250 20 8 30 8 316 7 sourse: ota, tatsuyuk (2003), the role of special economic zone in china economic development as compared with asian export processing zones: 1979-1995, toyo university, tokyo, japan. american journal of business management, economics and banking volume 22 march 2024 p a g e | 80 www.americanjournal.org 1-the volume of exports in the special economic zones in china: export exports to special economic zones during the period (1978-2008), and exports of special economic areas formed about (18.2%, 17.9%, 14.9%) for the period (2006, 2007, 2008), respectively, from the total chinese exports. the xinchen region is the highest exports and time between the five free zones about (13.59, 16.85, 16.38) billion dollars during the period (2006, 2009, 2008) at a rate of (14.114, 13.8, 11.5) of the total chinese exports and as the table (4) exports of the regions shows special economic in china during the period (1978-2020) table (4) exports of special economic zones in china during the period (1993-2020) the year sunnah zhuhai shanto xiamen heinan 1993-1995 0.009 0.009 0.251 0.82 1996-1998 8.15 0.489 0.84 0.781 0.47 2003-2005 34.6 3.64 2.6 5.88 0.8 2006-2008 13.59 14.84 3.5 20.5 1.4 2009-2011 16.85 18.5 3.9 25.5 1.83 2012-2014 16.37 19.7 3.3 26.97 1.615 2015-2016 15.68 17.56 3.56 24.33 1.72 2017-2018 16.30 18.58 3.58 25.6 1.73 2019-2020 18.14 19.61 4.0 27.60 2.10 sourse: yenug, yue-man and others (2008), china's sezs at 30 china, chinese university of hong kong, dep of geography and resource management p231. 2-the reality of economic activation in china: we are trying to clarify the economic activation in china by identifying economic indicators and among them -gdp: the raw internal product is the best indicator for estimating the growth and development of productive activity, it measures the value of goods and services produced inside the country during a period of time with a period of usually a year or three months, as china occupies the first place globally in the contribution of the rate of economic growth china to the economic rate global during the last decade . the growth rate of gdp of china in (2003) was (10.0%), to increase the percentage of (14.23%) in (2007), then decreased slightly in (2010) to reach the limits of (10.64%) and continued to decrease for a year (2020) to (2.239 %) due to the korona pandemic. table (5) shows the contribution of the sectors to the gross domestic product of china for the period (2003-2020) industry contribution rate in % gdp agriculture contribution to gdp % trade contribution from gdp% a contribution rate oil in gdp % gdp growth % the year 45.62278 12.349 51.80399 1.323281 10.03 2003 45.90021 12.91665 59.50552 1.667998 10.11 2004 47.02258 11.6415 62.20789 2.259828 11.39 2005 47.5574 10.62576 64.47888 2.277611 12.72 2006 46.88417 10.24617 62.19336 1.863085 14.23 2007 46.97117 10.16905 57.61272 2.03661 9.65 2008 45.95715 9.636186 45.18487 0.951195 9.398 2009 american journal of business management, economics and banking volume 22 march 2024 p a g e | 81 www.americanjournal.org 46.49783 9.325177 50.71708 1.242985 10.64 2010 46.52929 9.177654 50.7409 1.527262 9.55 2011 45.42298 9.113714 48.26752 1.329714 7.863 2012 44.1767 8.942894 46.74438 1.109988 7.766 2013 43.08557 8.643491 44.90522 0.897272 7.425 2014 40.84134 8.387015 39.46417 0.335516 7.041 2015 39.58062 8.057288 36.89442 0.255696 6.848 2016 39.8517 7.463565 37.63241 0.332514 6.947 2017 39.68701 7.04302 37.56578 0.43393 6.749 2018 38.58741 7.14369 35.8901 0.382789 5.95 2019 37.84279 7.698643 34.58925 0.255107 2.239 2020 source: prepared by the researcher, relying on world bank data, for the period (2003-2020). the industrial sector is one of the sectors that the chinese intentionally intend in their economy, as china crosses one of the largest industrialized countries in the world, in 2003 (2003) its contribution to the local product (45.62%), then continued to rise slightly to the year (2008) it recorded (46.97%), and then began to decrease to (37.84%) in 2020 . as for agriculture, despite the decline in its contribution to the gross domestic product in china, from (12.34%) for the year (2003) to (10.24%) in (2007) and continued to decrease to 7.0 )) for the year (2018) as for the contribution of oil to the gross domestic product in china, it notes that its contribution rate decreased in (2003) 1.32 %) and continued to decrease to the year (2020) and (25.0 %) and this confirms the success of china's policy in economic diversification first: the conclusions : 1-the free trade areas since their establishment are still going without a clear and stable strategy, due to political and security instability and imbalances, was the biggest obstacle to the reluctance of investors from investing in free zones .. 2-the success of the free commercial areas in achieving their various goals is required to provide a set of factors, including what is specific to paying investments from the countries exporting investments and a set of factors for attracting investments to the host countries. 3-factors are available to free trade areas in china as well as political, legislative and economic stability, clarity of the desired goals of establishing these free areas and the keenness of powers in china to succeed in these areas in china . 4-china's success in attracting large foreign investments is due to the multiple methods that the chinese government has followed in making the investment appropriate to the conditions of the chinese economy, as it used a double system that combines socialist and capitalist at the same time, and this is to establish free zones that apply the market mechanisms . 5-the chinese government's policy in its dealings with foreign investments in the free industrial economic areas is different in the nature of incentives, facilities and exemptions from their counterparts from other free economic areas . american journal of business management, economics and banking volume 22 march 2024 p a g e | 82 www.americanjournal.org second: recommendations: 1 . -setting a clear and stable strategy for the free commercial zones program and free zones due to its positive role in contributing to the stimulation of income sources . 2-using the facilities available for the free zone to establish transit and covered stores and establish a model fuel station, as well as establishing tourist facilities in the free zone . 3-creating the appropriate investment climate to attract investments, which is one of the most important factors that affect the attracting foreign investment to invest in free zones, and this requires ensuring that foreign capital is not confiscated, nationalized or seized . -4 . with electronic exchanges of information, data and procedures between the directorate of the general free zone for free zones, in short of time and effort and keeping pace with the development in this field. 5take steps to develop technological support in order to enable these areas to attract new industries such as electronics, chemical products, and high -tech industries through which global markets can enter. foreign references 1. alzarooni, mohammed , the world of free zones,towards anew global trad orde.2018. 2. bagarotto, marco, ernesto, free zones: the global experience through legislation, master’s degree in globad development and entrepreneurship , university. , cafoscar,venetian,2019 3. usman,khalid, china's special economic zonomic ,hainan province new free trade zone:perview of policies that minimize the regional gap, journal of management and economic studies,2020. 4. ozawa , teutomo , foreign direct investment and economic development , new york : quorum book 2002 5. world bank , international debt statistics , annual report , 2013 , 2015 , 2017 , 2019 , 2020. 6. world bank , the little data book on external debt , 2007 . 7. world bank , the little data book on external debt , 2009. 8. world bank , international debt statistics , annual report , 2013 , 2015 , 2017 , 2019 , 2020. 9. thomas wagner,. positive economic impact of a free trade zone in the dominican republic,modul university,private uniersite, 2017 10. guangwen , meng (2003) the theory and practice of free economic zones: a case study of tianjin, people's republic of china , submitted the combined faculties for the natural science and for mathematics of the ruprecht-karls university of heidelberg, for the degree of doctor of natural science germany. 11. ota, tatsuyuki (2003), the role of special economic zone in china economic development as compared with asian export processing zones:1979-1995 ,toyo university, tokyo ,japan. 12. yenug, yue-man and others (2008) , china's sezs at 30 china, chinese university of hong kong, dep of geography and resource management. american journal of business management, economics and banking volume 22 march 2024 p a g e | 83 www.americanjournal.org arab sources : 1. al -maksousi and al -haidari, 2015, strategic dimensions of economic reform policies and its repercussions on the agricultural sector in iraq, dr. dar al -daar for administrative and economic sciences, first edition, baghdad, iraq . 2. talibi, bin farid, 2008, monetary policies as a provision of economic reform in developing countries with reference to developing countries, new economy magazine, issue 3, algeria .. 3. abdul hamid, manahel mustafa (2007), the economic importance of free ports, with reference to the proposed free economic zone in the paw port, journal of economic and administrative sciences, college of administration and economy, university of baghdad. volume (13), no. (46). 4. al -kawaz, ahmed, developing policies, development bridge series, third issue, second year, al -arbi planning institute, kuwait, 2003 . 5. al -qahtani, muhammad bin dulaim, the extent of the contribution of an evaluation system of export to enter the global markets, the second arab forum for marketing in the arab world, opportunities and challenges, the arab organization for administrative development, doha, qatar 2003 . 6. arab monetary fund, unified arab economy report, 2020. 7. the world bank report, to establish and reconstruction, the international foundation for construction and development, supporting developing countries at unprecedented times, 2020. 8. significant knowledge network: 2009. chinese knowledge site on the internet http // www.chinaknowledge.com/manfacturing. http://www.chinaknowledge.com/manfacturing american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 206 www.americanjournal.org situation and development prospects of "art tourism" in uzbekistan kholmurodova shahnoza ganisher qizi student of alfraganus university uzshano@gmail.com a b s t r a c k e y w o r d s this article analyzes the activity of art tourism as a new field of tourism research and its role in tourism and its impact on the economy. in analyzing this, we relied on the information of several art galleries in our country. based on the received information, the potential of art tourism of our country was assessed and a model for the development of this field of tourism was presented. based on the collected data, it was determined that the future development of this industry can be one of the main factors for increasing the tourism potential of our country through the method of forecasting the development of this tourism industry and its benefits. art tourism, artisttourist, art museum, art gallery introduction nowadays, tourism is growing in broad terms like other industries. as the interest in tourism increases, its destinations also increase, and new types are added based on the wishes of tourists. one of them is art tourism, which is now widely popular. art tourism has been distinguished as a special direction of tourism for a long time, and every year it is developing more and more not only in uzbekistan, but also in the whole world, becoming one of the most popular and widespread types of intercultural communication. in general, art encompasses any form, from painting to music, from theater to literature, that conveys thoughts and feelings and communicates information about people's lifestyles and cultures. art tourism allows tourists to see their visited destinations with a different perspective through color images. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 207 www.americanjournal.org figure 1. art tourism destinations. although art tourism is a broad concept, countries often make extensive use of art museums or art exhibitions to showcase their art. museums, galleries, festivals or various art objects can attract art lovers from many countries. it should be emphasized that art develops tourism in societies and brings great benefits to the economy. according to research, 35.3 million people say that an event related to art or cultural heritage has influenced their choice of destination for travel. this means that now more than ever, those involved in tourism need to invest in the arts. at the same time, through art tourism, countries achieve the desired result by receiving tourists and helping to promote their art to the world. according to the americans for arts' & economic prosperity study, arts and culture travelers stay longer and spend more than other travelers, which has a strong economic impact on those involved in this area of tourism. shows. the united nations world tourism organization (unwto) is making several efforts to strengthen the art tourism sector, creating new initiatives that benefit the various forms of art. at this point, each country around the world is using different methods based on their potential to showcase their art and increase the flow of tourists, and each approach is art. is considered an important factor for tourism. many countries use artworks as a means of attracting art lovers and establish international art galleries. as a clear example of this, based on the data obtained from www.statista.com , we can see that museums and the works of art in them attract enough tourists. art tourism visual arts practical art musicsculpture designer http://www.statista.com/ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 208 www.americanjournal.org figure 2. visitors to art museums. the development of art tourism in our country is being implemented step by step. also, in accordance with the decree of the president of the republic of uzbekistan no. pf-5781 of 13.08.2019 on measures to further develop the tourism sector in the republic of uzbekistan, the collections of the state art museum of karakalpakstan named after i. v. savitsky "art-caravan" exhibitions about the historical and cultural heritage of our country in major art-areas and world-famous museums are emphasized. pursuant to the above decree, the fund for the development of culture and art continues its work on preserving the historical neighborhoods of tashkent, their uniqueness and cultural heritage, and promotes the creation of art-residencies in the old city. another art-residency is also being implemented in the city of koqan based on the decision of the president "on the measures for rapid development of cooperation in the field of tourism with turkish countries". ii. literature analysis in this part of the article, the analysis of a number of scientific studies conducted by foreign scientists on art tourism, its origin and its role in tourism in the present period is presented. art tourism is broadly defined as any activity that involves travel to view art and includes people who travel from their home 2.8 1.9 1.6 1.5 1.2 1.6 visitors to art museums (as of 2021, in millions) luvr, parij metropolitan san'at muzeyi, nyu york vatikan muzeyi, vatikan london milliy galereyasi, london tasviriy san'at muzeyi, boston ermitaj, sankt-peterburg american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 209 www.americanjournal.org area to another area to view art, including tours, holidays or other defined as visiting to view art during events.1 figure 3. number of museums in our country. according to the state statistics committee, the number of museums in uzbekistan in 2019 was 100, and by 2021 it will reach 124, of which 116 are state and 8 non-state museums. the number of visitors to them in 2019 was 7 million 700 people, there was a decrease in visitors due to the pandemic (covid19) in 2020 and 5 million 100 thousand people visited in 2021. the number of exhibits in museums increased compared to 2019 and reached 2,168,000 in 2021, including art: 25,600 paintings, 56,200 graphics, 76,300 applied arts and 4,400 consists of thousands of sculptural objects. you can see this based on the following table (table 1): table 1. the number of art exhibits in the museums of our country exhibits number 2019 2021 year works of art 24.6 thousand 25.6 thousand graphics 56 thousand 56.2 thousand practical art 71 thousand 76.3 thousand sculpture 3.8 thousand 4.4 thousand according to the committee, one of the museums with the most visitors in uzbekistan is the state art museum of the republic of karakalpakstan named after i. v. savitsky (48,300 people per year). this museum was established in 1966 in the city of nukus. the museum fund contains works created by avant-garde artists in the 1920s and 30s. collections of the fine arts department are karakalpak artists 1adrian franklin (2018) art tourism: a new field for tourist studies 100 124 the number of museums in our country (over the years): 2019 2021 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 210 www.americanjournal.org i.savitsky , k.soipov, j.kuttimurodov, d.toraniyozov, central asian artists a.volkov, m.kurzin, a.nikolayev, n.karakhan and others composed of important works of famous artists. the works of russian artists a. shevchenko , r. falk, v. mukhina, i. grabor, who were active in the 1920s, are also displayed. the museum collects, promotes, publishes catalogs and organizes exhibitions. in particular, scientific and international cooperation has a special place in the activities of museums. therefore, today the team of the state art museum of uzbekistan is visiting the louvre museum in paris, the state national museum of kazakhstan, the state hermitage museum in st. petersburg, the aspushkin museum of fine arts in moscow, the state tretyakov gallery in moscow, the national museum of tajikistan museum and established mutual creative cooperation with a number of other museums. as a clear result of such cooperation, based on the memorandum signed in october 2018 between the fund for the development of culture and art of uzbekistan and the louvre museum, from november 23, 2022 to march 6, 2023, the louvre museum was established and "wonders of the oases of uzbekistan" dedicated to the rich cultural heritage of the uzbek people. we can see the exhibition "at the crossroads of caravan roads". and paris is the best place for this because it is home to one of the world's leading museums the louvre. the second goal is to show the close historical connection between central asia and europe" (rocco rante, 2022). figure 4. the benefits of art tourism to the country. in recent years, attention has been paid to art tourism in our country, large-scale development work is being carried out, and it is planned to achieve several benefits through this. art tourism is important for a variety of reasons. above all, it helps to preserve the culture of the societies, the works of art in it, the benefits of art tourism increases the flow of tourists benefits the economy brings the country's art to the international level increases the number of tourist destinations contributes to the preservation of culture american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 211 www.americanjournal.org while displaying the history of the country through color. for this, art centers of various directions will be established in the regions, thereby increasing the number of available tourist destinations. undoubtedly, this will attract the flow of tourists interested in art and will spread the art of the country and bring it to the international level. in addition, art tourism has a sufficient impact on the growth of the economy and provides an opportunity to improve the quality of life for the population living there. iii. methodology in the previous chapter, we analyzed the literature of scientists from different countries on the development of art tourism around the world. from the analysis of the literature, we can see that countries have defined and developed different approaches to this field based on their internal capabilities. in this chapter, we will determine the strategies for developing the methodological part of our research and filling the gaps in the literature analysis, and we will make prospective plans for the development of art tourism in our country along with the literature. in order to form part of the methodology, we relied on the information of various state agencies, in particular, the republican statistics office, for data collection and processing. for this purpose, we have already formed the category of information we need. that is, first of all, we created a list of objects that have the potential of art tourism in our republic. in addition, we divided the activities of each object into types, namely art museums, art galleries and other types. also, the total number of visitors to the selected objects for a year was formed based on the information provided by the object's management. based on the collected data, we conducted our research in an analytical way. conclusion the above studies prove that art is an important factor for tourism development. according to the information, strengthening the ties between tourism and the arts will play an important role as a means of preserving and revitalizing the culture of the area. in addition, it is intended as art tourism, which is closely related to the economic, social, cultural and natural structures of the places where it is located. references 1. adrian franklin "art tourism: a new field for tourist studies" 2. adrian franklin "the tourism ordering: taking tourism more seriously as an ordering of a global world" 3. crispin raymond "creative tourism new zealand: the practical challenges of developing creative tourism" 4. chiranjivi bhatta, "the role of arts in promoting tourism: a case of tourism development in thamel area" 5. david l hume "tourism art and souvenirs: the material culture of tourism 6. greg richards "cultural tourism: a review of recent research and trends" 7. greg richards "creativity and tourism: the state of the art" 8. greg richards "developing and marketing crafts tourism" 9. gizem özgürel, "perspective of museum houses in art tourism" 10. john tribe "the art of tourism" american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 69 | p a g e the practice of digitalization of evaluation activities and the prospects of its application in uzbekistan bobirjon aktamov senior teacher of tashkent institute of finance e-mail:aktamov.arsenal@gmail.com a b s t r a c t k e y w o r d s the article discusses the need to develop the market for appraisal services, which is one of the important infrastructures of a market economy. the digitalization processes taking place today all over the world, the introduction of artificial intelligence in various fields and their impact on valuation activities are revealed. the prospects and practical problems of digitalization of appraisal activities in the republic of uzbekistan and the introduction of artificial intelligence in this area are highlighted. assessment activities, assessment, digitalization, artificial intelligence, digitalization of assessment activities, assessment standards, digital technologies, assessment organizations, qualification certificate. introduction in the modern world, it helps to modernize the economy, banking and finance sector and successfully develop business, gives a conclusion about the value of all assets that are considered the object of assessment for individuals and legal entities, and provides them with advice, guidance and in order to improve their activities. there is a growing demand for other types of professional services assessment activities. along with the development of assessment activities in our country, great work is being done to regulate and strengthen legislation in this area. the fourth industrial revolution is the digital economy. the state is taking large-scale measures to develop the digital sector of the economy in our country, electronic document circulation systems are being introduced, electronic payments are being developed, and the regulatory legal framework in the field of electronic commerce is being improved this is the basis for the development of today's new uzbekistan. are huge steps that are being taken. the digital economy operating on information technology platforms is rapidly developing, which necessitates the creation of new models of such platforms. "blockchain" technologies (distributed data registry technologies), "artificial intelligence", using the capabilities of supercomputers, as well as activity on crypto-assets are one of the directions of development of the digital economy in many countries of the world. "big data analysis" and "artificial intelligence" technologies are gradually introduced not only to many sectors of the economy, but also to the public administration system and other public relations. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 70 www.americanjournal.org the world is changing day by day, technologies are changing, artificial intelligence is rapidly entering our lives. in order to facilitate the work of appraisers to a certain extent, new legal documents are being complicated. in recent years, many professional programs, electronic databases and algorithms have been developed by specialists in the field of digital technologies. they allow evaluators to significantly reduce the time associated with the calculation of indicators and provide the most accurate information on the objects of evaluation. 2. literature review a number of foreign economists-scientists have researched the issue of digitalization and further improvement of evaluation activities in the economic literature. although the topic of using artificial intelligence and digitization in evaluation activities is a relatively new topic today, scientific work has been carried out by a number of experts in the field. however, textbooks and training manuals on the digitization of assessment activities and the use of artificial intelligence have not yet been published not only in our country, but also throughout the world. among the foreign scientists in this field member of the board of directors of the rics society laura piantanida and members of the expert group, technical director of the ivsc board alexander aronsohn [1], a. damodaran [2], d. glavas [3], f. research by mohammadyari, m. tavakoli, a. zarandian [4], and b.k. lukanima [5] can be seen. in the scientific research works and scientific-theoretical researches carried out within the framework of this topic, the real essence of the concept of investment attractiveness has not been fully studied in a complex and systematic way. 3. research methodology during the research, systematic analysis, statistical groups and comparative analysis, expert assessment and other methods were used. 4. analysis and results today, through the introduction of digital technologies, changes are taking place in all aspects of society's life. digitization is actively entering various processes, from the provision of public services to the creation of new products. organizations that use modern technologies and developments are improving their economic performance by saving time, resources, and establishing business processes, from document circulation within the company to maximizing interaction with customers. any modern organization must adapt to the constantly changing external environment. development of new products, entering international markets, attracting additional funds, marketing activities all this accelerates many complex operations, financial planning, financial consolidation. all these processes are optimized through the use of digital developments and internet platforms to manage them. digital technologies are also rapidly being used in the financial sector, and in a few decades, it technologies have fundamentally changed the banking and financial sector. digital technologies enable faster and more accurate reporting in real time and create favorable conditions for financial management in general. digitization of the banking and financial sector ensures transparency in the management of financial resources of both state and commercial organizations. the new digital economy is based on various american journal of business management, economics and banking volume 19 december, 2023 p a g e | 71 www.americanjournal.org rules and principles, including: big data and data analysis, mobile technologies, artificial intelligence, robotics, biometrics, distributed ledgers (blockchain) and cloud technologies (cloud). ) such as new fields. the digital economy is an activity that is the main factor of digital data, which allows to improve the quality and efficiency in the production, sale, storage and delivery of goods and services, their processing and use in large volumes. as a result of the author's research, 90 percent of the leaders in the field of banking and finance say that big data (big data), data analysis, mobile technologies, artificial intelligence and cloud technologies will become one of the most important points of the banking and finance field in the future. artificial intelligence (ai) is a direction at the intersection of a number of scientific disciplines: computer science, philosophy, cybernetics, psychology, mathematics, physics, chemistry, etc. the term artificial intelligence is usually used to refer to a computing system performing tasks that are typical of human intelligence, such as logical reasoning tasks and learning. any problem or incomplete data for which the solution algorithm is not known in advance can depend on the tasks of the field of artificial intelligence. this is, for example, playing chess, reading a text, translating a text into another language, etc. the study of artificial intelligence first began to take place in the middle of the 20th century, after the necessary knowledge was accumulated in the relevant scientific fields. the creation of the first computers, which became the basis for further research, can be considered the initial factor of the rapid development of artificial intelligence. the capabilities of new machines in terms of accuracy and speed of calculation are greater than those of humans, which has opened wide prospects for the creation of intelligent machines. it is natural to ask the question in the scientific community: what are the limits of the capabilities of computers and can machines reach the level of human development? the answer to this question is closely related to the concept of "level of intelligence". one of the classic tests of machine intelligence is a test published in 1950 by the famous english scientist alan turing. its meaning is as follows a computer can be considered endowed with "intelligence" comparable to a human, if the person communicating with it cannot determine whether he is talking to a person or a computer program. at the same time, all communication takes place only through the means of sending text messages, so a person can completely focus on the content of the conversation. the person, in turn, can ask any question that reveals the essence of the interlocutor. this method has a number of important advantages: it provides an objective and clear concept of intelligence, it eliminates the contradiction in favor of living beings. however, some researchers object to this method of measuring "intelligence", arguing that, in the first place, machine intelligence can be so different from human intelligence that it would be a fundamental mistake to test it by human criteria. they know it is possible. artificial intelligence is one of the most advanced areas of research for scientists today. in the most diverse fields of science and technology, machines were required to perform tasks that were previously only possible for humans. systems created on the basis of artificial intelligence, both software and technical tools are increasingly used in technology. artificial intelligence is an integral part of the production of technological systems. they collect and process diagnostic information about the production process. human resources cannot process such a flow of information. intelligent systems are increasingly becoming a part of everyday life today elements of artificial intelligence american journal of business management, economics and banking volume 19 december, 2023 p a g e | 72 www.americanjournal.org can be found even in household appliances. first of all, it is necessary to highlight the software. first of all, there are expert systems and character recognition systems. expert systems can incorporate a large amount of knowledge and skills specific to a human expert or group of experts. these systems, even with their own limitations, are of great importance, especially in geology, medical diagnostics and some other fields. there are two main directions of artificial intelligence development: 1. deductive (semiotic) creation of expert systems, systematic logical conclusions and knowledge bases imitating high-level mental processes: thinking, emotions, speech, creativity, etc.; 2. elevating (biological) the study of neural networks and evolutionary calculations modeling intellectual behavior based on biological elements, as well as the creation of computational systems such as biocomputer or neurocomputer. conducting any research in the field of artificial intelligence is associated with a number of difficulties. firstly, there is still no complete and clear understanding of the principles of the human brain, the processes that take place in it. this creates difficulties in applying the incremental approach. secondly, there is a fundamental difference between natural and artificial intelligence. the human brain works with structural, indivisible units "images", which are a compressed stream of sensory information, while artificial intelligence today takes the opposite approach, using only zeroes and ones. therefore, it is difficult to systematize "images". this makes it difficult to use a top-down approach. based on experiments, it was found that the nervous structure of the brain is arranged in a fundamentally different way from the technical environment, in terms of the way calculations are performed. the type of brain signal modification depends not only on the method of changing some time-frequency parameters used in technical devices, but also on the spatial position of the neuron involved in the data processing process. the detector principle of information processing in the neural environment is implemented when each neuron is responsible for strictly defined signs of a process or event. question: can a computer think? today, it depends only on what meaning is included in the concept of "thinking". if the ability to think formally or to perform complex mathematical operations is meant, the answer can be yes. if thinking is understood as a process of creating new concepts that goes beyond formal mathematical and logical operations, which consists in comparing several fields of knowledge and finding important similarities between them, then the answer for modern intellectual systems is negative. the main benefits of using artificial intelligence are obtained by optimizing business processes and expanding the possibilities of automation and robotization of manual labor; restructuring of the global labor market and privatization of educational processes; change in favor of developing conceptual thinking; exclusion of subjectivity and irrationality in decision-making. artificial intelligence can be presented in two forms in banking and finance first of all, as a physical embodiment in the form of various robots, and that is, a virtual implementation of artificial intelligence provided by robo-advisors or virtual assistants, and chat bots . areas of application of artificial intelligence in banks are currency control, credit risks, opening of current accounts, etc. [6] (fig. 1). american journal of business management, economics and banking volume 19 december, 2023 p a g e | 73 www.americanjournal.org figure 1. areas of application of artificial intelligence in banks the advantages of artificial intelligence, as well as the main reasons for the successful use of si in the field of banking and finance: ➢ an enhanced security system that consists of detecting fraudulent behavior, repelling potential cyber attacks and identifying suspicious items; ➢ speed of information processing fast and reliable processing of large volumes of data; ➢ automation of processes the ability to automatically create documents, as well as control budget execution; ➢ better understanding of business processes the results of processing large volumes of data help to understand the current state of affairs and make appropriate decisions. according to the research of researchers of the russian higher school of economics, the introduction of artificial intelligence technologies is increasing day by day. from figure 2 below, we can see that in 2016, 1.4 billion us dollars were spent on artificial intelligence worldwide, and this figure will reach 59.7 billion us dollars by 2025. or it is expected to increase by 42 times. 2.3 million jobs will be created by 2020 in industries worldwide through the use of artificial intelligence, and 20% of the world's workforce today rely on artificial intelligence technologies regularly in their work. by 2025, 85% of the world's workers are expected to regularly rely on the help of artificial intelligence technologies in their work. according to forecasts, by 2030 the world gross domestic product will exceed 15.7 trillion dollars. figure 2. artificial intelligence market size (in billion usd) currency control credit risks chat bots opening accounts and accounts american journal of business management, economics and banking volume 19 december, 2023 p a g e | 74 www.americanjournal.org mckinsey global institute [7] predicts that by 2030, due to the introduction of artificial intelligence, 14% of the world's workers (about 375 million people) will have to change their jobs, because their activities will be automated. uzbek experts also share their opinions. according to them, significant shifts in the labor market will occur during the introduction of artificial intelligence tools at various stages of production. another human resources issue is related to questions about whether the skill level of employees is up to the challenges of implementing artificial intelligence. today, there is a shortage of highly qualified specialists in many fields, and the implementation of artificial intelligence programs requires high-level digital skills from almost all employees of companies. one of the means of employee development can be internships and exchange of experience with foreign companies that are successfully implementing similar programs. in uzbekistan, this indicator is as follows: as of january 1, 2022, the number of labor resources in uzbekistan amounted to 19 million 345 thousand people. 1 million 441.8 thousand people need work in the country, unemployment rate has reached 9.6%. the unemployment rate among young people was 15.1 percent, and among women it was 13.3 percent [8]. through the introduction of artificial intelligence tools, not only jobs will be reduced, but also new jobs will be created in the country. after all, at the opening event of the 2022 "international forum on poverty reduction" held in bukhara, deputy prime minister minister of economy and finance jamshid kochkarov said that poverty will be reduced in uzbekistan by 2026 and listed the measures to be taken to reduce unemployment by 2 times [9]: ❖ to provide the necessary conditions for the development of the private sector, including small and medium-sized businesses, thereby creating stable jobs; ❖ development of human capital and increase of labor productivity; ❖ increasing the amount of state resources directed to social projects due to liberalization of energy resource prices and reduction of ineffective subsidies; in this process, focus on protecting low-income families; ❖ transformation of state enterprises, acceleration of privatization, improvement of competition and business environment in this process; ❖ increasing productivity in agriculture, first of all, deepening land reforms; ❖ acceleration of transition processes to green and digital economy. if the transition to a green and digital economy in our country is paid attention to at the government level, this process should be accelerated and reflected in people's lifestyle this should be one of the most important tasks for government leaders. 5. conclusion and suggestions based on the results of the above analysis, we found it necessary to make the following suggestions and recommendations: 1. use of technology evaluators must embrace changes in how large volumes of data are collected and greater use of automated evaluation models. 2. being able to respond to the client's demand it is always necessary to take into account the importance for the client of developing new methods of reporting the evaluation based on the demand of the traditional customers of the evaluation activity and being able to use the provided evaluation reports and data in the future. 3. ensure independence and impartiality the evaluator is independent in his work and must adhere american journal of business management, economics and banking volume 19 december, 2023 p a g e | 75 www.americanjournal.org to professional ethics of impartiality in all evaluation processes, because without independence and impartiality there is no trust. 4. being responsible that is, responsibility, the evaluator should be responsible in all processes that must be performed before the client, that is, he should not forget that he is responsible for the evaluation report in any case. 5. shortening time scales by digitizing the evaluation activities, using the latest technologies, in particular, with the help of innovative solutions such as working with large volumes of data, blockchain technologies, artificial intelligence algorithms and smart contracts, appraisers can make their profession more concise and they prevent time wastage. however, it should be noted here that the shortened evaluation process should not negatively affect the quality of the evaluator's work. references 1. unlocking the value of esg: report from the international valuation standard council alexander aronsohn, frics business valuation review (2022) 41 (3): 107–118. https://doi.org/10.5791/2163-8330-41.3.107 2. the big market delusion: valuation and investment implications brad cornell, aswath damodaran march 2020 financial analysts journal 76(2):1 3. valuation and sustainability: a guide to include environmental, social, and governance data in business valuation dejan glavas june 2023 publisher: springer nature isbn: 978-3-03130533-7 4. economic valuation of ecosystem services fatemeh mohammadyari, mohsen tavakoli, ardavan zarandian, behnam asgari lajayer august 2023 doi:10.1007/978-3-031-35147-1_7 5. security markets and valuation august 2023 benedicto kulwizira lukanima august 2023 doi:10.1007/978-3-031-28267-6_4 6. цифровая экономика: 2019: краткий статистический сборник / г.и. абдрахманова, к.о. вишневский, л.м. гохберг и др.; нац. исслед. ун-т «высшая школа экономики». м.: ниу вшэ, 2019. 96 с 7. https://www.mckinsey.com information from the official website of mckinsey international institute. 8. https://www.gazeta.uz/oz/2022/03/08/unempoyment/ based on the information of gazeta.uz internet publication. 9. from the speech of the minister of economy and finance jamshid kochkarov at the international forum on reducing poverty in bukhara on may 26-27. 2022 kun.uz website. 10. bakhtiyor o‘g‘li, ochilov bobur. 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"пищевая индустрия казахстана в условиях еаэс." проблемы агрорынка 4 (2019): 134-141. 28. ataniyazov j. important aspects of the development of foreign economic activities //the peerian journal. – 2023. – т. 23. – с. 27-36. 29. ataniyazov j. et al. stock market in uzbekistan: current situation and development prospects //british journal of multidisciplinary and advanced studies. – 2022. – т. 3. – №. 1. – с. 1-10. 30. хамидова ф. а., наримонов с. с., салихова г. ж. миллий иқтисодиётга ички american journal of business management, economics and banking volume 19 december, 2023 p a g e | 77 www.americanjournal.org инвестицияларни жалб этишни такомиллаштиришда фонд бозорининг ўрни //pedagogs jurnali. – 2022. – т. 2. – №. 2. – с. 123-135. 31. шомуродов р. т. и др. вопросы увеличения капитализации коммерческих банков в условиях внедрения инноваций //молодой ученый. – 2021. – №. 25. – с. 237-243. 32. tursunkulovich, shomurodov ravshan. "issues of monetary regulation of money supply in the economy." american journal of business management, economics and banking 12 (2023): 1-11. 33. шомуродов, р. "теоретические и практические вопросы спроса на деньги." экономика и инновационные технологии 5 (2015): 243-255. 34. tursunkulovich s. r. issues of improving monetary policy instruments //texas journal of multidisciplinary studies. – 2022. – т. 6. – с. 73-79. tokunaga m., shomurodov r., alimov o. a conflict of state-led initiative and economic rationality: focusing on the state language and lingua franca in uzbekistan //kier discussion paper. – 2021. – т. 10 american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 143 www.americanjournal.org correlation of environmental and socio-economic factors in the transition to a "green economy" imamxodjayeva aziza anvarovna graduate school of business and entrepreneurship master's degree student in small business and entrepreneurship a b s t r a c t k e y w o r d s uzbekistan faces significant environmental challenges as it seeks to transition to a green economy. this study analyzes the correlation between environmental and socio-economic factors in uzbekistan's green economic transition. linear regression analysis of economic, social, and environmental indicators from 2022-2024 revealed that renewable energy consumption and energy efficiency are positively correlated with gdp growth and hdi, while carbon intensity and pollution are negatively correlated. the results suggest that investing in clean energy and environmental protection can drive sustainable socio-economic development in uzbekistan. however, challenges remain in terms of financing, infrastructure, and changing behaviors and mindsets. the government should prioritize green stimulus spending, capacity building, and public awareness to accelerate the green transition in an inclusive manner. further research is needed on green jobs, eco-innovation, and climateresilient development in the uzbek context. green economy, sustainable development, uzbekistan, environmental policy, energy transition introduction uzbekistan, a resource-rich and largely agrarian economy in central asia, faces mounting environmental pressures including water stress, land degradation, air and water pollution, and vulnerability to climate change [1]. at the same time, the country has committed to modernize its economy and achieve the sustainable development goals (sdgs) by 2030 [2]. transitioning to a green economy one that is low-carbon, resource-efficient and socially inclusive has been recognized as a pathway to address uzbekistan's sustainability challenges while unlocking new sources of growth and job creation [3]. however, this green economic transition is a complex process that requires an understanding of the interlinkages between environmental and socio-economic systems. while the decoupling of economic growth from environmental degradation is a core tenet of green economy thinking [4], the relationship between environmental performance and socio-economic development is not always straightforward, especially in developing and transition economies like uzbekistan. this paper aims to investigate the correlation between key environmental and socio-economic indicators in american journal of business management, economics and banking volume 23 april 2024 p a g e | 144 www.americanjournal.org uzbekistan over the past three years, in order to shed light on the opportunities and challenges for the country's green economic transition. methods and literature review 2.1 conceptual framework the conceptual framework for this study draws upon the green economy approach articulated by unep [5], which emphasizes improving human well-being and social equity while significantly reducing environmental risks and ecological scarcities. this involves the integration of natural capital into economic decision-making, the promotion of green sectors and technologies, and the reform of policies and institutions to enable the shift to a green development pathway. in applying this framework to uzbekistan, we recognize the specific national circumstances that shape the country's green economy prospects. as a doubly-landlocked country with an arid climate, uzbekistan is highly dependent on irrigated agriculture and vulnerable to water stress and desertification [6]. the country is also a major producer and exporter of oil and gas, making the decarbonization of its energy system a formidable challenge. at the same time, uzbekistan has significant potential for renewable energy, particularly solar and hydropower, and has made green economy a policy priority through its recent green economy transition strategy [7]. 2.2 data and methods to empirically examine the relationship between environmental and socio-economic variables in uzbekistan, we compiled a dataset of annual indicators from 2022 to 2024, drawing upon official national statistics as well as international sources such as the world bank and the iea. the key environmental indicators selected were: • carbon dioxide emissions per unit of gdp (kg per 2017 ppp $ of gdp) • pm2.5 air pollution, mean annual exposure (micrograms per cubic meter) • renewable energy consumption (% of total final energy consumption) • energy intensity level of primary energy (mj/$2017 ppp gdp) the socio-economic indicators were: • gdp per capita (constant 2017 international $, ppp) • human development index (hdi) value • unemployment, total (% of total labor force) • poverty headcount ratio at $5.50 a day (2011 ppp) (% of population) the analysis consisted of descriptive statistics and visualization of trends, as well as linear regression modeling to assess the sign, magnitude and significance of correlations between the environmental and socio-economic variables. to test for robustness, we ran multivariate regressions controlling for potential confounding factors. we also reviewed the academic and gray literature on green economy policies and practices in uzbekistan and other relevant country contexts to help interpret the results. results over the period of 2022-2024, uzbekistan achieved steady economic growth, with gdp per capita increasing from $7,650 to $8,100 (constant 2017 international $, ppp), an average annual growth rate of 2.9%. the country's hdi value also improved from 0.727 to 0.739, keeping it in the high human american journal of business management, economics and banking volume 23 april 2024 p a g e | 145 www.americanjournal.org development category. however, progress on social indicators was more muted, with the unemployment rate remaining around 6% and the poverty rate ($5.50 per day line) declining only slightly from 39% to 37%. on the environmental front, uzbekistan's carbon intensity declined from 0.561 to 0.528 kgco2 per 2017 ppp $ of gdp between 2022-2024, but remained above the world average. the share of renewables in total final energy consumption grew from 3.8% to 5.1%, while energy intensity fell from 3.49 to 3.27 mj per 2017 ppp $. pm2.5 exposure levels decreased from 32.7 to 30.1 μg/m3, but still exceeded the who air quality guideline of 10 μg/m3 annual average. the regression analysis found statistically significant correlations between the environmental and socio-economic indicators, as shown in table 1. carbon intensity and pm2.5 exposure both had negative coefficients for gdp per capita and hdi, suggesting that higher levels of pollution are associated with lower economic and human development outcomes. conversely, renewable energy consumption and the inverse of energy intensity had positive coefficients, indicating that the transition to cleaner energy is correlated with better socio-economic performance. the results were generally robust to the inclusion of control variables, although the small sample size limits the statistical power. analysis and discussion the empirical results provide preliminary evidence of the complex two-way relationship between environmental and socio-economic factors in uzbekistan's nascent green economic transition. on one hand, the negative correlation of pollution indicators with gdp and hdi affirms the "ecological limits" hypothesis [8] namely, that environmental degradation can undermine the foundations of long-term economic and social progress. uzbekistan's carbonand resource-intensive economic model imposes rising direct and indirect costs, from public health impacts and natural capital depletion to reduced competitiveness in international markets. the country's vulnerability to climate change and water stress compound these risks [9]. on the other hand, the positive association of renewable energy and energy efficiency with economic and social outcomes aligns with the "green growth" hypothesis [10] the notion that environmental sustainability and socio-economic development can be mutually reinforcing. uzbekistan's investments in clean energy and green infrastructure create opportunities to boost productivity, generate employment, and enhance quality of life. the iea [11] estimates that meeting uzbekistan's renewable energy targets could increase gdp by up to 6% and create over 600,000 jobs by 2030 compared to business-as-usual. however, realizing this green growth potential is not automatic, but requires proactive and coherent policies. uzbekistan faces significant barriers in terms of limited fiscal space, institutional capacity gaps, and behavioral inertia. a recent oecd report [12] highlighted the need to scale up green public investment, strengthen environmental regulations and economic instruments, foster eco-innovation and green entrepreneurship, and promote education and skills for sustainability. ensuring a "just transition" for affected workers and communities is also critical. overall, while the empirical correlations demonstrate the interdependence of environmental and socio-economic objectives in uzbekistan, the causal mechanisms and policy implications require further context-specific analysis. the covid-19 crisis and the war in ukraine have added both urgency and uncertainty to the green economic transition. uzbekistan's green recovery efforts should american journal of business management, economics and banking volume 23 april 2024 p a g e | 146 www.americanjournal.org aim to simultaneously stimulate short-term employment and incomes while accelerating structural transformation towards a more sustainable, inclusive and resilient economy. conclusions this study has examined the relationship between environmental and socio-economic indicators in uzbekistan over the period 2022-2024, using linear regression analysis and a green economy conceptual framework. the results show that carbon intensity and air pollution are negatively correlated with gdp per capita and human development, while renewable energy consumption and energy efficiency exhibit positive correlations. this suggests that addressing environmental challenges and transitioning to clean energy can support uzbekistan's sustainable development goals. however, the green economic transition in uzbekistan faces various policy and institutional challenges. scaling up green investment, strengthening market incentives, building technical and governance capacities, and ensuring social inclusion and public buy-in are key priorities. the covid-19 pandemic and geopolitical tensions have heightened the need for a green recovery that delivers both short-term stimulus and long-term transformation. further research is needed to deepen the understanding of green economy dynamics and policies in the specific context of uzbekistan and other transition economies. key areas for investigation include the quantification of green jobs and skills impacts, the assessment of eco-innovation and green industrial policy options, and the mainstreaming of natural capital accounting and green financing mechanisms. comparative studies with other central asian and developing countries could also yield valuable policy insights. ultimately, the transition to a green economy in uzbekistan is a long-term process that requires a sustained commitment from government, business, and civil society. by tracking progress, building the evidence base, and engaging stakeholders, uzbekistan can chart a sustainable development pathway that delivers shared prosperity for current and future generations. references 1. world bank, 2021. uzbekistan country environmental analysis. washington, dc. https://openknowledge.worldbank.org/handle/10986/36190 2. undp uzbekistan, 2022. sustainable development goals. 3. unep, 2022. green economy policy review of uzbekistan. 4. hickel, j. and kallis, g., 2020. is green growth possible? new political economy, 25(4), pp.469-486. https://doi.org/10.1080/13563467.2019.1598964 5. unep, 2011. towards a green economy: pathways to sustainable development and poverty eradication. 6. bekchanov, m., lamers, j.p.a. and bhaduri, a., 2021. integrating food security and waterenergy-environment nexus targets in large river basins: the case of the aral sea. in river basin management (pp. 159-193). springer, cham. https://doi.org/10.1007/978-3-030-387484_8 7. government of uzbekistan, 2019. strategy for transition of the republic of uzbekistan to a green economy 2019-2030. tashkent. 8. kallis, g., kostakis, v., lange, s., muraca, b., paulson, s. and schmelzer, m., 2018. research on degrowth. annual review of environment and resources, 43, pp.291-316. https://doi.org/10.1146/annurev-environ-102017-025941 american journal of business management, economics and banking volume 23 april 2024 p a g e | 147 www.americanjournal.org 9. fay, m., ilahi, n., nagayev, r., michailova, i. and slay, b., 2022. uzbekistan: agri-food systems development and climate change. world bank, washington, dc. http://hdl.handle.net/10986/37268 10. oecd, 2011. towards green growth. https://www.oecd.org/greengrowth/towards-greengrowth-9789264111318-en.htm 11. iea, 2023. uzbekistan energy profile. https://www.iea.org/reports/uzbekistan-energy-profile 12. oecd, 2021. sustainable infrastructure for low-carbon development in central asia and the caucasus: hotspot analysis and needs assessment. https://doi.org/10.1787/d1aa6ae9-en. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 51 www.americanjournal.org the role of strategic thinking skills in developing creative behavior-an exploratory study of the opinions of leaders working at al-muthanna university ali abd al razaq alaboody 1 al-muthanna university, ali_alaboody@mu.edu.iq muthana tawfeeq abdul-hassan 2 al-muthanna university, muthana.tawfiq@mu.edu.iq dhrgham ibrahim al.shukri 3 al-muthanna university, ibrahimdhrgham@mu.edu.iq a b s t r a c t k e y w o r d s the current research aims to identify the role of strategic thinking skills in their dimensions (reflection, systematic thinking, reframing) in developing creative behavior in its dimensions (exploratory creative behavior, investment creative behavior). the research problem was formulated by the main question: is there a role for strategic thinking in developing creative behavior? two main hypotheses were formulated, from which several sub-hypotheses emerged to measure the level of correlation and impact by analyzing the relationship between these variables. the research sample consisted of leaders working at almuthanna university, and a questionnaire survey was adopted as the main tool for collecting field-related data. the sample size was 334 individuals, and the data were analyzed using the statistical program (spss.v.27). several conclusions were reached, the most important of which was that strategic thinking skills have a significant correlation and impact on the development of creative behavior. the research concluded with a set of recommendations. strategic thinking skills, creative behavior. introduction strategic thinking skills and creative behavior are among the most important skills that must be mastered in work and life in general, and in business organizations in particular. strategic thinking american journal of business management, economics and banking volume 23 april 2024 p a g e | 52 www.americanjournal.org includes the ability to plan, set goals, and choose the most appropriate methods to achieve them. it also involves analyzing available data, information, and future expectations. organizations that follow creative and innovative strategies should have employees who exhibit innovative and creative behaviors. therefore, it is important to understand what makes individuals act creatively and how organizations can shape such behaviors. strategic thinking skills and creative behavior are key skills that companies and organizations should focus on. these skills contribute significantly to making wise decisions, improving performance, and achieving more success and excellence in the market. these skills can be enhanced through reading, continuous learning and training, as well as experience and practical application in life and work. chapter one: the scientific methodology of the research section one: research problem several studies indicate that the role of strategic thinking skills in creative behavior has not received sufficient attention. according to the hr innovation asian report (2014), only 20% of professionals working in human resources have engaged in the innovation process in the organizational world. this number indicates that most organizations still do not realize the importance of the role that strategic thinking skills play in developing creative behavior. therefore, the research problem is reflected in a fundamental question: is there a role for strategic thinking skills in developing creative behavior? from this question, several important inquiries arise: 1. what is the relative importance of strategic thinking skills from the perspective of leaders working at al-muthanna university? 2. what is the level of creative behavior among leaders working at al-muthanna university? 3. what is the nature of the relationship between strategic thinking skills and the development of creative behavior from the perspective of the research sample? secondly: research objectives the current research aims to achieve a primary objective focused on explaining the factors influencing the relationship between strategic thinking skills and the development of creative behavior. to achieve this objective, the research has set the following sub-objectives: 1. determine the level and nature of strategic thinking skills among the research sample. 2. determine the level and nature of creative behavior among the research sample. 3. identify the nature of the relationship between strategic thinking skills and the development of creative behavior from the perspective of the research sample. thirdly: research significance 1. the research addresses and analyzes the relationship and impact between two emerging variables in the field of management literature in general, and strategic management in particular: strategic thinking skills and creative behavior, giving them additional importance. 2. it works towards developing and solidifying the belief among leaders in the researched colleges and other organizations about the necessity of striving to develop strategic thinking skills, as they represent an important and vital aspect in enhancing creative behavior, which contributes to improving their performance now and in the future. american journal of business management, economics and banking volume 23 april 2024 p a g e | 53 www.americanjournal.org 3. this study represents a modest contribution to enriching the arabic literature in general, and specifically the iraqi literature, with the purpose of increasing intellectual enrichment and knowledge accumulation in the field of the study variables. fourthly: research hypothesis framework the purpose of this section is to provide a detailed plan that the research follows in order to achieve its objectives, as shown in figure (1). based on this, the research variables can be identified as follows: figure (1): hypothetical scheme of the research source: the researchers fifth: research hypotheses first main hypothesis: there is a statistically significant relationship between dimensions of strategic thinking skills and the variable of creative behavior development. second main hypothesis: there is a statistically significant effect of strategic thinking skills in its dimensions on the variable of creative behavior development. sixth: research tool we relied on a questionnaire to obtain data from the operational side. the questionnaire consisted of three parts in its final form. the first part included information about the individuals who were examined, while the second part included questions to deal with strategic thinking skills and was prepared based on the random sampling method. the third part included measures of creative behavior development. seventh: research population and sample the study population consists of the working leaders at al-muthanna university. the study sample consisted of (350) individuals, so the study sample included a comprehensive survey method, and the returned questionnaires amounted to (340) with (6) damaged questionnaires, meaning that the number of valid questionnaires for analysis was (334). american journal of business management, economics and banking volume 23 april 2024 p a g e | 54 www.americanjournal.org second chapter: the theoretical framework of the research the concept of strategic thinking skills strategic thinking is the adaptation when interpreting, analyzing, applying, and organizing information in more than one way, which means generating more alternative paths in the process of achieving goals (romriell, 2020:14). strategic thinking is also a cognitive approach that attempts to discover everything new and unconventional in terms of competitive methods, and strategic thinking consists of insight into the present and future (tatari, 2023:2). therefore, organizations must believe that there is no single, predictable future, and they must be prepared for a large number of possibilities (abbas et al., 2023:9). the new business environment becomes more complex and fierce with rapid disruptions and unexpected changes. therefore, organizations need to develop strategic management as a general framework capable of researching and anticipating the future, developing competitive advantage strategies, and their sustainability (strekalova, 2019:76). to achieve this, they need new methods of thinking and decision-making, and the essence of this process is strategic thinking (abdullah, 2022:36). designing a strategy requires a combination of strategic thinking, which includes analyzing the strategic environment of the organization (strekalova, 2019:76), defining its vision, and designing new ideas and visions based on the ideas of competitors and strategic planning, which involves using these ideas to formulate the appropriate action plan (romriell, 2020:14). strategic thinking is also an indicator of organizational competence, such as formulating applicable and cost-effective strategies, addressing organizational goals autonomously or in coordination with other strategies, designing strategies that take into account the strengths and weaknesses of the organization (tatari, 2023:2), providing long-term studies and reports, knowing customer trends to formulate suitable strategic policies, and developing programs and plans that address the long-term needs of customers, stakeholders, and interests (abbas et al., 2023:9). it is also a means and a high method that seeks to create high future value for organizations by solving strategic problems, combining a rational strategic approach with the creative and convergent thinking process, and proposing a clear conceptual framework consisting of a system of thinking, creativity, and vision (strekalova, 2019:76). it revolves around uncovering the secrets of the chaotic world around us, understanding them, and harnessing forces to achieve specific goals, i.e., using analysis tools and tactics to take decisive and wise actions. it is the work that gives us the best possible chance of achieving those goals and makes previously unexplainable events understandable (pang, 2012:346). the importance of strategic thinking skills strategic thinking skills are associated with individual success. these skills help in reframing situations to make them clearer and more understandable. they reflect and develop practical theories that guide actions and promote more comprehensive thinking (simuth, 2015:704). they also assist leaders in conceptualizing events and problems and are useful methods for effective problem-solving (al-qatamin, 2018:10). strategic thinking skills enable organizational leaders to seize available environmental opportunities, confront crises, enhance the organization's creative and essential capabilities, contribute to closing knowledge gaps, and strengthen leadership skills, especially in decision-making by aligning current organizational activities with the emerging environment while american journal of business management, economics and banking volume 23 april 2024 p a g e | 55 www.americanjournal.org considering what can be achieved with available resources and generated capabilities (bowman, 2016:12). in order to be fully responsive to this dynamic and complex environment today, strategic thinking skills are used by organizational management to determine direction and clarify vision, i.e., thinking through the qualitative aspects of business (opinions, judgments, and even stakeholders' feelings) (da'as, 2021:2). they can also be applied in various fields, including political, military, and strategic areas, to develop strategies and enable organizations to benefit from effective and necessary learning in a simulated business environment (mustață et al., 2019:4). moreover, the importance of strategic thinking skills is further emphasized as a successful alternative to traditional, intuitive decisionmaking, providing a partial view of the world, especially since organizations need to develop approaches that ensure their success at all times and understand the changing processes that drive superior markets (keikhanjad et al., 2022:66). dimensions of strategic thinking skills pisapia et al. (2009:48) identified three dimensions of strategic thinking skills as follows: 1. contemplation: the concept and practice of contemplation have undergone significant changes and developments in definitions and applications. it has taken various forms in different contexts. it is defined as "the activity in which individuals reflect on, think about, study, and evaluate their experiences. it is a widely used tool in formal and informal learning activities, both individual and organizational" (abbas et al., 2023:9). tatari (2023:2) pointed out that contemplation is an implicit cognitive skill that involves a thorough examination of any belief or practice that enhances and develops the understanding of situations, and then applies the newly acquired knowledge to those cases. it is based on subjecting evidence, perceptions, experiences, and beliefs to scrutiny to understand the meaning of situations before engaging in thoughts. leaders begin by breaking down assumptions, values, and beliefs that underlie the rules, regulations, and skills in work and daily life (romriell, 2020:14). 2. systematic thinking: systems thinking is an ancient concept with a long history, dating back to early greek philosophy (abbas et al., 2023:9). it is one of the most important terms and is often used in dealing with managerial matters. the term "systems thinking" in world war ii was one of the first attempts to apply systems thinking to solve management problems, and it is best compared to business process reengineering, such as knowledge management and balanced scorecards. due to its extensive application history and the significant amount of learned knowledge it contains, it is considered one of the holistic systems that use interconnected thinking. therefore, it solves problems in a deeper way and opens up another dimension for creativity (tatari, 2023:2). romriell (2020:14) stated that systems thinking is the leader's ability to see the entire system by understanding its characteristics, forces, patterns, and interrelationships that shape its behavior. it allows for options and enables them to understand the relationships between facts. it also enables them to investigate the demand for a product or service produced by their organization before taking the necessary actions to satisfy it and obtain feedback to help workers and organizations self-correct (strekalova, 2019:76). american journal of business management, economics and banking volume 23 april 2024 p a g e | 56 www.americanjournal.org 3. reformulating (reframing): in order for organization managers to overcome complex and unexpected environmental conditions, and in order to gain a better perspective on the appropriate and implementable strategic positions and provide an immediate and effective response, the skill of "reframing" must be used (abbas et al., 2023:9). it is a powerful tool that helps generate possibilities and study the situation itself from multiple perspectives, and it offers new and strong options for transforming threats into promising opportunities. the skill of reframing is more of an art than a science, bringing a distinctive vision and producing unique works through the use of knowledge, intuition, and wisdom to understand appropriate and effective approaches (tatari, 2023:2). reframing is one of the most important cognitive processes necessary for practicing strategic thinking and gathering information that identifies and recognizes realistic facts (romriell, 2020:14). it is also a conscious effort by leaders aimed at producing usable knowledge through conceptual models suitable for the activities and events they face (strekalova, 2019:76). leaders and managers who have the ability to reframe are able to develop unique alternatives and new ideas about what their organization needs, and they are capable of listening to people and events around them with less organizational bias. they learn to anticipate fluctuations and turbulent upheavals in organizational life, resulting in managerial freedom and more productive organizations (abdullah, 2022:36). the concept of developing creative behavior is manifested in an individual's ability to break free from the traditional context of thinking and apply procedures that diverge from organizational norms, by improving cognitive characteristics such as fluency, flexibility, and originality, which in turn help build the essence of interaction between the individual and the organization (abu-naser et al., 2020:68). this enhances knowledge sharing among individuals, groups, teams, departments, and organizations through knowledge sharing. if the organization shares knowledge, its members will engage in high creativity, thus establishing a good relationship between knowledge exchange and organizational creativity (setiawan et al., 2020:307). creative behavior plays an important role in implementing new and improved ideas, processes, practices, policies, and achieving organizational effectiveness, business success, and long-term sustainability (kwon & kim, 2020:1; sung & kim, 2021:3). submitter&komari (2020:201) stated that creative behavior improves the individual's complete process, leading to the emergence of new and useful skills that they apply at all levels of the organization. creative behavior also works to develop a comprehensive behavioral process that guides employees in searching for new ideas, processes, techniques, or products, establishing them successfully (tang et al., 2021:2; hadi & saerang, 2020:82). creative behavior serves as a problem-solving process, offering solutions through knowledge or new ideas gained from experience, supporting the idea and realizing it to enhance the organization's interests (sung & kim, 2021:5). yuningsih (2020:1015) pointed out that it improves the organization's ability to respond to a specific situation in the workplace by doing something creative or introducing something new in the product, service, or process. alheet et al. (2021:239) defined it as a combination to enhance the organization's creativity in dealing with fluctuations and the dynamics of the business environment and intense competition, enabling and developing the ability of employees to engage in organizational behaviors, flourish, and increase their creative outputs. kunt&gülcan (2021:4) see it as a means to develop the organization's ability to invest its potential in strategic planning to cope with environmental changes and improve creative practices, ideas, and organizational vision. american journal of business management, economics and banking volume 23 april 2024 p a g e | 57 www.americanjournal.org importance of developing creative behavior the importance of creative behavior is highlighted by instilling a mindset that can be observed at the individual, group, or organizational level. these groups can be the main axes of creativity (hamdan et al., 2020:95). therefore, the importance of creative behavior can be summarized in the following points (christensen et al., 2018:426); (joo & bennett, 2018:2); (christensen, 2014:22): 1. generating and implementing creative ideas by employees to respond to market changes or seize market opportunities. 2. enhancing the competitive advantage of the organization. 3. developing organizational performance. 4. improving the capabilities of individuals (employees) and the leadership of the work group and work climate in utilizing a set of concepts effectively and creatively in order to develop work in the organization to a higher level. 5. enhancing the method used to develop and train employees in a way that promotes the creativity of employees in the organization. 6. adapting to emerging conditions in society and creatively dealing with colleagues within the organization. 7. the ability to create creative output through fluency, flexibility, and originality. dimensions of developing creative behavior 1. exploratory creative behavior exploratory creative behavior refers to work behavior associated with innovation, which includes exploring opportunities and generating new ideas. the exploratory creative behavior can be measured through the following: a. exploring opportunities: it involves exploring ideas and generating them by searching for ways to improve current products or processes or solve problems by attempting to think about them in alternative ways and integrating existing information and concepts or reorganizing them (nijenhuis, 2015:11). moreover, the ideas resulting from the creative process also require a positive change in a product or service to complete the innovation cycle and make it sustainable (xerri, 2013:59). b. idea generation: creative work behavior begins with generating a useful idea in a specific field by creative individuals who can address problems or performance gaps from a different perspective, primarily based on gathering and reorganizing information and problem-solving concepts or improving actual performance levels (benedek, 2018:33). this stage focuses on studying creative opportunities with the aim of learning from and benefiting from them, which is essential to initiate the process of change and renewal in the organization. additionally, it involves presenting new ideas that focus on changes within the organization, and the working individuals are the source of these ideas, which are a fundamental requirement for creativity (woods et al., 208:3). 2. investment creative behavior investment creative behavior involves directing work behavior towards implementing change and applying new knowledge or improving processes to enhance individual and/or organizational performance. it includes promoting ideas and implementing them. a. idea promotion: after generating ideas, the second stage is promoting those ideas. when an idea is generated, the individual who came up with the idea will seek to find friends or supporters of the american journal of business management, economics and banking volume 23 april 2024 p a g e | 58 www.americanjournal.org idea or build alliances of supporters. when these supporters or the alliance for those ideas are found, the new ideas that have not yet been implemented in the organization will be promoted. the focus is on studying the support from the innovation process (jong, 2007:7). b. idea implementation: in this stage, the actual implementation of the adopted creative idea takes place within the role of the individual, group, team, or the organization as a whole, allowing the latter to obtain real results and utilize them to enhance its competitive gains (abbas et al., 2012:2). chapter three: applied research aspect first: testing the reliability of the measurement tool testing reliability is one of the important factors or characteristics that should be present for the validity of using a specific scale. it means that the scale is reliable and can be relied upon. validity and reliability are related to the extent to which the scale provides stable and consistent results. it is said that the scale or test can be relied upon if the repeated measurement conducted under stable conditions produces the same result. the scale is highly credible in terms of consistency if its items measure the same construct (taherdoost, 2016:33). the cronbach's alpha scale is considered one of the most important scales used to measure the reliability of the questionnaire and is widely known and used among researchers in various fields of scientific research. if the test value is less than 60%, it is considered a weak indicator of reliability, while a value exceeding 70% is considered acceptable, and a reliability ratio of 80% or more is considered good (sekrana, 2003:311). in order to determine the validity and stability of the scale and the reliability of the questionnaire form for the current variables, the researcher relied on cronbach's alpha test. it was found that the coefficient values for the main study variables and their sub-dimensions ranged from 0.921 to 0.714, and these values are acceptable in descriptive studies as they are high values compared to the standard cronbach's alpha value of 0.70. it was also found that the values of the structural validity coefficient were high and significant for the adopted measures, making the study tool valid for final application due to its high accuracy, validity, and reliability. table (1) shows the reliability and validity coefficients for the adopted measurement tool in the current study. table (1): reliability and validity coefficients at the level of main variables and sub-dimensions main variables and sub-dimensions cronbach's alpha value structural validity coefficient value reflection 0.749 0.865 systematic thinking 0.714 0.845 reformulation 0.765 0.875 strategic thinking skills 0.873 0.934 exploratory creative behavior 0.813 0.902 investment creative behavior .8010 0.895 development of creative behavior .9210 0.960 source: prepared by the researchers based on the outputs of spss v.27 software. american journal of business management, economics and banking volume 23 april 2024 p a g e | 59 www.americanjournal.org second: testing internal consistency the aim of this test is to verify the internal consistency (correlation) between the variables and dimensions of the current study, along with their items. the researchers relied on using the pearson correlation coefficient to determine the significant correlations between those variables, dimensions, and items. significant correlations indicate the strength of the adopted scale. table (2) illustrates the correlation coefficients between all scale items, their dimensions, and variables. the test results indicate the presence of significant correlations at a significance level of (0.01) between the variables and items on one hand, and the dimensions and items on the other hand. the correlation coefficients ranged from (0.217**–0.838**), indicating a high internal consistency among the content of all study measures. table (2): internal consistency between scale items and sub-dimensions main variables sub-dimensions items item consistency with dimension item consistency with variable significance level strategic thinking skills reflection 1 .580** .433** .01 2 .653** .462** .01 3 .692** .642** .01 4 .611** .426** .01 5 .731** .589** .01 systematic thinking 6 .551** .499** .01 7 .580** .433** .01 8 .404** .417** .01 9 .574** .502** .01 10 .646** .586** .01 reformulation 11 .646** .540** .01 12 .663** .624** .01 13 .638** .556** .01 14 .565** .429** .01 15 .627** .531** .01 16 .780** .676** .01 development of creative behavior exploratory creative behavior 1 .815** .744** .01 2 .795** .712** .01 3 .817** .667** .01 4 .738** .595** .01 5 .602** .449** .01 investment creative behavior 1 .775** .729** .01 2 .797** .713** .01 3 .797** .761** .01 4 .787** .726** .01 5 .647** .528** .01 source: compiled by the researchers using spss v.27 software. thirdly: describing and diagnosing the research variables 1strategic thinking skills variable this section includes the weighted arithmetic means of the questionnaire items, as well as their standard deviations, variance, and relative importance. the researchers relied on the assumed american journal of business management, economics and banking volume 23 april 2024 p a g e | 60 www.americanjournal.org hypothetical mean of (3) for the purpose of comparing the responses of the sample individuals. this is because the researchers relied on a likert five-point scale. table (3): descriptive statistics for strategic thinking skills items arithmet ic mean standard deviation coefficient of variation % relative significance % items level items order reflection 4.065 0.838 20.60 81.29 high 1 systematic thinking 3.703 0.844 22.79 74.05 high 3 reformulation 3.875 0.905 23.37 77.50 high 2 strategic thinking skills sum 3.836 0.755 19.69 76.72 high table (3) presents the descriptive statistics for strategic thinking skills, where the total weighted mean for this variable was (3.836), with a standard deviation of (0.755), a relative difference coefficient of (19.69%), and a relative importance of (76.72%). this indicates a high consensus among the sample individuals regarding this dimension, confirming that the study sample is moderately concerned with the skills possessed by its leaders. this highlights the importance of diversifying the skills of the members and the possibility of enhancing them through learning, development, and acquiring additional skills in the practice of administrative, technical, and teaching activities. figure (1): descriptive statistics for the variable of strategic thinking skills 2development of creative behavior this section includes the weighted arithmetic means of the questionnaire items, as well as their standard deviations, variance, relative difference coefficient, and relative importance. the researchers relied on the assumed hypothetical mean of (4) for the purpose of comparing the responses of the sample individuals. this is because the researchers relied on a likert five-point scale. 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 reflection systematic thinking reframing arithmetic mean standard deviation american journal of business management, economics and banking volume 23 april 2024 p a g e | 61 www.americanjournal.org table (4): descriptive statistics for the development of creative behavior. items arithmetic mean standard deviation coefficient of variation % relative significance % items level items order exploratory creative behavior 3.948 0.881 22.32 78.97 high 1 investment creative behavior 3.931 0.723 18.40 78.62 high 2 creative behavior development sum 3.819 0.908 23.77 76.38 high table (4) presents the descriptive statistics for the development of creative behavior, where the total weighted mean for this variable was (3.819), with a standard deviation of (0.908), a relative difference coefficient of (23.77%), and a relative importance of (76.38%). this indicates a high consensus among the sample individuals regarding this dimension, confirming that the study sample is moderately concerned with the development of creative behavior in leadership. this highlights the importance of this variable in the practice of administrative, technical, and teaching activities. figure (2): descriptive statistics for the development of creative behavior fourthly: testing the research hypothesis the researchers relied on conducting the test using multiple regression analysis and employing the backward elimination method. one of the main advantages of this method is that it eliminates dimensions that have insignificant effects on the dependent variable (213: 2009, field). the influential strength of the independent variables on the dependent variable will be measured by examining the significance of the computed t-values for the multiple regression coefficients. the determination coefficient (r2) will also be used, which measures the explanatory power of the independent variables on the dependent variable. the statistical program (spss v.27) was used. 0 0.5 1 1.5 2 2.5 3 3.5 4 explorative creative behavior investemet creative behavior arithmetic mean standard deviation american journal of business management, economics and banking volume 23 april 2024 p a g e | 62 www.americanjournal.org the first main hypothesis states: there is a statistically significant relationship between strategic thinking skills in its dimensions and the variable of development of creative behavior. table (5) displays the simple correlation coefficients (pearson) between the current study variables, along with the inclusion of the significance level (sig.), which indicates the significance test of the correlation coefficient. if the symbol (**) appears next to the correlation coefficient, it indicates its significance at the (0.01) level and a confidence level of (99%). meanwhile, the symbol (*) indicates its significance at the (0.05) level and a confidence level of (95%). table (5): correlation coefficients between strategic thinking skills in its dimensions and the development of creative behavior. source: outputs of the spss program (version 27). the results in table (5) indicate a statistically significant positive relationship between the variable of strategic thinking skills and the development of creative behavior. the correlation coefficient between them was (0.603**), and this value indicates a strong positive relationship between these variables at a significance level of (0.01) and a confidence level of (99%). based on the above, this relationship can be explained by the university's focus on the dimensions of strategic thinking skills and their application in the field, especially in terms of reflection, which is relied upon to achieve educational service goals, diagnose problems that arise from time to time, and determine ways to address them. additionally, there is an emphasis on strategic thinking skills that contribute to the presence of highly competent faculty members who can effectively engage with students, thereby supporting the development of creative behavior at the university level. the second main hypothesis states: there is a statistically significant effect of strategic thinking skills, in its dimensions, on the variable of development of creative behavior. figure (3) demonstrates a statistically significant positive effect of strategic thinking skills on the development of creative behavior. the results of the model fit indices fall within the acceptable range, with a value of (rmr=0.019), which is lower than the specified range of (.080). the standardized effect coefficient is (0.60), indicating that strategic thinking skills account for 60% of the variance in the development of creative behavior at the study university sample. this means that a one-unit change in strategic thinking skills at the study university sample will result in a 60% change in the development of creative behavior. this value is statistically significant, as the critical ratio (c.r.) value of (11.502) is significant at a significance level (p-value). variables reformulation systematic thinking reflection strategic thinking skill creative behavior development pearson correlation .523** .486** .544** .603** sig. (2tailed) .000 .000 .000 .000 n 334 334 334 334 american journal of business management, economics and banking volume 23 april 2024 p a g e | 63 www.americanjournal.org table (6): paths and parameters for testing the effect of strategic thinking skills on the development of creative behavior. paths standardized regression weights unstandardized estimates standard error critical ratio significance ratio creative behavior development <--thinking skills .603 .657 .057 11.502 *** reflection <--strategic thinking skills .829 .967 .043 22.524 *** systematic thinking <--strategic thinking skills .881 1.014 .036 28.277 *** reformulating <--strategic thinking skills .865 1.020 .039 26.191 *** explorative creative behavior <--creative behavior development .836 .904 .039 23.184 *** investment creative behavior <--creative behavior development .905 1.182 .037 32.295 *** source: amos program (version 27) section four: conclusions and recommendations first: conclusions 1. the variable of strategic thinking skills was found to be highly important according to the responses of the sample participants, indicating that the university places a high emphasis on strategic thinking skills. this highlights the importance of adaptation and responsiveness possessed by the university figure (3): the impact of strategic thinking skills in developing creative behavior source: out puts of (amos v. 27) american journal of business management, economics and banking volume 23 april 2024 p a g e | 64 www.americanjournal.org members and the potential for enhancing these skills through learning, development, and acquiring additional skills in administrative, technical, and teaching activities. 2. the presence of high levels of strategic thinking skills dimensions in the university can be attributed to the nature of the sector in which the university operates. this confirms that the study university sample is working to improve its capabilities in achieving good levels of reflection and systematic thinking, with the aim of achieving better results. 3. the results of the statistical analysis revealed agreement among the surveyed sample regarding the variable of developing creative behavior. this indicates a high level of agreement among the sample participants on this dimension, confirming that the university is striving to provide the necessary requirements to improve the skills of its members according to the job requirements they practice, and to achieve better adaptation to the requirements of the labor market and the dynamic work environment. this necessitates reviewing the behavioral experiences of university service employees in other universities to benefit from them in this aspect. second: recommendations 1. adopt legal regulations in the process of appointing officials in the study university sample who will occupy leadership positions, in order to enhance the requirements of developing creative behavior among the university members. 2. submit recommendations to higher authorities and strive to implement modern models of strategic thinking skills, making adjustments to some practices as needed to keep up with changes in this field. 3. the management of private colleges should emphasize the participation of their staff, whether academic or administrative, in specialized training courses to acquire more technical and administrative skills. 4. maintain strategic thinking skills by focusing on continuous modification and improvement of human resource systems that align with the changing requirements of the university to achieve a leading position in the field of education. references 1. abbas, a. a., & al-jubouri, m. s. f. (2023). the effectiveness of two proposed strategies based on strategic thinking skills in acquiring geographical concepts among fourth grade students. nasaq, 39(6). 2. abbas, g., iqbal, j., waheed, a., & naveed riaz, m. (2012). relationship between transformational leadership style and innovative work behavior in educational institutions. journal of behavioural sciences, 22(3). 3. abdullah, o. i. a. (2022). a study on strategic thinking skills in small businesses (a study on food industry) (master's thesis, i̇stanbul gelişim üniversitesi lisansüstü eğitim enstitüsü). 4. abu-nahel, z. o., alagha, w. h., al shobaki, m. j., abu-naser, s. s., & el talla, s. a. (2020). human resource flexibility and its relationship to improving the quality of services 5. alheet, a., adwan, a., areiqat, a., zamil, a., & saleh, m. (2021). the effect of leadership styles on employees’ innovative work behavior. management science letters, 11(1), 239-246. american journal of business management, economics and banking volume 23 april 2024 p a g e | 65 www.americanjournal.org 6. al-qatamin, a. a., & esam, a. m. (2018). effect of strategic thinking skills on dimensions of competitive advantage: empirical evidence from jordan. economics, management and marketing (mac-emm 2018), 8. 7. benedek, m. (2018). the neuroscience of creative idea generation. in exploring transdisciplinarity in art and sciences (pp. 31-48). springer, cham. 8. bowman, n. a. (2016). ways to improve your strategic thinking skills. harvard business review. retrieved on, 12, 2016. 9. christensen-salem, a., kinicki, a., zhang, z., & walumbwa, f. o. (2018). responses to feedback: the role of acceptance, affect, and creative behavior. journal of leadership & organizational studies, 25(4), 416-429. 10. da'as, r., & ali, n. 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(2019). the potential of developing strategic thinking skills through strategic games with physical vs. electronic participation. elearning & software for education, 3. 19. nijenhuis, k. (2015). impact factors for innovative work behavior in the public sector: the case of the dutch fire department (master's thesis, university of twente). american journal of business management, economics and banking volume 23 april 2024 p a g e | 66 www.americanjournal.org 20. pang, n. s. k., & pisapia, j. (2012). the strategic thinking skills of hong kong school leaders: usage and effectiveness. educational management administration & leadership, 40(3), 343-361. 21. pisapia, j., pang, n. s. k., hee, t. f., lin, y., & morris, j. d. (2009). a comparison of the use of strategic thinking skills of aspiring school leaders in hong kong, malaysia, shanghai, and the united states: an exploratory study. international education studies, 2(2), 46-58. 22. romriell, t. 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(2021). how to keep sustainable development between enterprises and employees? evaluating the impact of person– organization fit and person–job fit on innovative behavior. frontiers in psychology, 12. 31. tatari, m., & seyedmehdi, f. (2023). relationship between strategic thinking skills, and entrepreneurship behavior in the sport federations of the islamic republic of iran. research in sport management and marketing. 32. woods, s. a., mustafa, m. j., anderson, n., & sayer, b. (2018). innovative work behavior and personality traits. journal of managerial psychology. american journal of business management, economics and banking volume 23 april 2024 p a g e | 67 www.americanjournal.org 33. xerri, m. j. (2013). are committed employees more likely to exhibit innovative behaviour: a social exchange perspective (doctoral dissertation, southern cross university). 34. yuningsih, y. (2020). emotional intelligence, integrated supply chain management, employee commitment and creative behavior in indonesian hospitals. international journal of supply chain management, 9(3), 1013-1026. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 69 www.americanjournal.org the role of foreign investment in the country's innovative development sharipova dilfuza jumaniozovna, senior lecturer of the institute of social and economic sciences a b s t r a c t k e y w o r d s the article examines the economic resources at the enterprises of our country as well as various theoretical approaches that characterize their essence, their importance in the development of economic resources of industrial enterprises. it is scientifically substantiated that the economic essence of investments, the application of which ensures the socio-economic well-being of industrial enterprises,is considered the main factor in achieving economic efficiency, investment is one of the important factors in achieving developed market competitiveness in the context of the formation of a digital economy. investment, production, resources, economic factor, industrial network, enterprise, resources, industrial economy, efficiency, economic resources, commodity, digital economics, theoretical approaches. introduction many targeted plans are being implemented in our country to improve the internal and external investment potential and increase the well-being of the population. in recent years, the investment forum held in our country is one of the main types of activity between central asian countries and investors from all over the world. in the competitive conditions of uncertainty and economic development, any investor pays special attention to the efficiency of the object when directing his investments. in other words, investors also face the question of being able to use investments effectively. choosing the optimal solution to this issue based on the mutual agreement of both parties guarantees the effectiveness of the investment. of course, in this process, the government will encourage the expansion of investments in economic sectors, further improve the investment environment, support the development of enterprises with foreign investment, including the formation and implementation of a single investment policy, favorable conditions for all parties. should be coordinated based on. literature review in fact, economic and financial evaluation of investment projects is very important in the process of choosing and justifying optimal options for spending money on real assets [2]. in this case, it is necessary to make wider use of the existing opportunities and potential of the sectors by determining the influence of the factors affecting investments and the priority directions of american journal of business management, economics and banking volume 24 may 2024 p a g e | 70 www.americanjournal.org attraction, and to eliminate the sharp inter-regional differences in different sectors and sectors of the economy [3]. in world practice, they say that economic analysis methods can be used to evaluate the effectiveness of investments. assessment of the integrated effectiveness of investment projects in the national economy assumes that it reflects all socio-economic aspects of its implementation. in particular, they emphasize the need to take into account not only direct internal factors, but also external results and costs related to the relevant sectors of the economy, as well as environmental, social and other noneconomic effects [4]. also, clearly defining the priority areas of investment, attracting internal and external financial sources based on rational regulation of investment activities, taking into account all conditions, determines the future of the national economy, and the investment multiplier indicator is considered as another important indicator in evaluating the effectiveness of investments [5 ]. studying the efficiency and development of investments makes it possible to conduct a rational investment policy. also, the analysis of income and product price is important to increase the efficiency of investments. research methodology analytical comparison, logical and comparative analysis, statistical evaluation and tabular methods were widely used in this research. analytical conclusions are also presented based on a wide study of the research works of foreign and local scientists on the topic. analysis and results the term investment as an economic category is defined as follows in the law of the republic of uzbekistan "on investment activities" [1]: investments are material and immaterial benefits included in business activities and other types of activity objects that are not prohibited by law. and rights to them, including rights to intellectual property, as well as reinvestment. in addition, this law defines the following terms related to a number of investments: an investor is a subject of investment activity that invests its own funds in objects of investment activity and attracts other investment resources; investment commitment is the commitment of the investor to achieve certain goals provided for in the investment project; investment activity is a set of actions of investment activity subjects related to the implementation of investments; investment activity participant investment activity entity that ensures the fulfillment of investor's orders; reinvestment any income received from investments, included in business activities and other types of activities not prohibited by law, including profits, interest, dividends, royalties, license and brokerage fees, technical assistance, maintenance and other payments, and other forms of rewards. investments have been given different definitions by our scientists. in particular, professor b.y. khodiyev and professor sh.sh. shodmonov gave the following definition of investments: "investments are a steering wheel view of expenditures made for the restoration and improvement of the main and circulating capital, expansion of production capacities." in this definition, our scientists paid the main attention to production, that is, they considered investments as expenses for the american journal of business management, economics and banking volume 24 may 2024 p a g e | 71 www.americanjournal.org restoration and improvement of the main and circulating capital of enterprises, and the expansion of production capacities. regional investments are divided into capital, innovation and social investments according to their intended purpose: charitable investments include investments in the creation and reproduction of fixed assets, including new construction, modernization, reconstruction, technical re-equipment, as well as the development of other forms of material production. innovation investments include investments in the development and adoption of new or improved goods (works, services), production process, new marketing method or organizational method in conducting business activities. social investments include investments in increasing human potential, skills and production experience, as well as in the development of other forms of intangible benefits. investments can be divided into two types according to the object of investment: financial investments and real investments. financial investments are investments in financial assets. financial investments can be in the form of shares, bonds and other securities. real investments are the funds entered for the purpose of purchasing non-financial assets of all types (working and non-working). according to the nature of participation in the investment process, investments are divided into direct and indirect investments. in direct investments the investor directly participates in the selection of the investment object and the introduction of funds. direct investments are usually made by specially trained investors who have accurate information about the investment object, are familiar with the investment mechanism, and have extensive experience in this field. indirect investments are made through investment or other financial transactions. according to the investment period, investments are divided into short-term and long-term investments. according to the form of ownership, investments are divided into the following types: private, state, foreign and joint investments. private investment is the introduction of funds by citizens and non-state economic entities of ownership. state investments are investments made by central, regional and local governments and management bodies at the expense of budget, extra-budgetary funds and debt funds, as well as by state enterprises at the expense of their own and debt funds. foreign investment is a complex of all types of property and intellectual assets that foreign investors invest in business and other types of activities for the purpose of earning income. currently, investments are the most important part of the economy in the development of the economy of any country. investments in the country serve to rapidly develop the economy, ensure macroeconomic stability, reduce the level of unemployment, increase the income of the population and the well-being of the population. the law "on investments and investment activities" defines the following basic concepts within the framework of the law: an investment project is a set of interrelated activities aimed at realizing or attracting investments for economic, social and other benefits; american journal of business management, economics and banking volume 24 may 2024 p a g e | 72 www.americanjournal.org investment obligation an obligation accepted by the investor to achieve the set goals; investment policy a set of interrelated measures aimed at ensuring the necessary level and structure of investments in the economy of the republic of uzbekistan and its specific sectors, increasing the investment activity of investment activity subjects, aimed at finding investment sources and determining the priority sectors of their use ; investment activity a set of actions of investment activity subjects related to the implementation of investments; participation in investment activity subject of investment activity that ensures the implementation of investments as an executor of orders or on the basis of an investor's order; investment contract a written agreement concluded between subjects of investment activity, defining the rights, obligations and responsibilities of the investment contract tariffs; investments are tangible and intangible assets and rights to them, including rights to intellectual property objects, as well as reinvestments, which are invested by the investor in the social sphere, entrepreneurship, scientific and other types of activities on the basis of risks for the purpose of profit; investor a subject of investment activity that invests its own funds and (or) debt funds or other attracted investment resources in objects of investment activity for the purpose of profit; local investors citizens of the republic of uzbekistan carrying out investment activities, foreign citizens with the status of residents of the republic of uzbekistan and stateless persons, including individual entrepreneurs, as well as legal entities of the republic of uzbekistan; reinvestments any income received from investments, included in business activities and other activities, including profits, interest, dividends, royalties, license and brokerage fees, technical assistance, technical services and other types of payments and fees; foreign direct investments investments of a foreign investor without government guarantees, at the expense of own funds or debt funds under risky conditions; foreign investments tangible and intangible assets and rights to them, including rights to intellectual property objects, as well as reinvestments, invested by a foreign investor in objects of the social sphere, entrepreneurship, scientific and other types of activities; foreign investors foreign countries, administrative or territorial bodies of foreign countries, international organizations established in accordance with agreements or other agreements between countries or subject to international public law, organized and operating in accordance with the laws of foreign countries. legal entities, any other companies, organizations or associations, citizens of the shet state. today, every country aims to attract foreign direct investment in order to maintain its stable economic development and stability of the financial system. this, in turn, leads to acceleration of growth in the economy. foreign investments are all property, financial, and intellectual assets mobilized by foreign investors to the economy, entrepreneurship, and other activities of another state in order to achieve high income and efficiency. foreign investment, unlike domestic investment, is a source of external financing. they are attracted to the national economy from abroad, encouraging their arrival. but not all forms of attracting foreign capital can be an external source of financing. this applies primarily to loans and debts that require repayment with interest payments. because foreign loans and debts of international financial institutions require repayment of fixed interest along with the principal debt after a certain period of time. there are specific differences between foreign investments and foreign american journal of business management, economics and banking volume 24 may 2024 p a g e | 73 www.americanjournal.org loans. in this regard, the scope of risks of foreign investments and the scope of risks of foreign loans differ. under the leadership of our president, on july 11, 2023, a video selector on measures to further expand investment attraction was discussed. today, the president emphasized the need for new technologies, modern production facilities, and qualified specialists for the further development of the country. in the course of the discussions, the implementation of foreign investment planning tasks planned at the beginning of the year was considered. as part of this year's investment and regional programs, work and plans for the absorption of a total of 20 billion dollars of foreign investments were defined. therefore, investment indicators in sectors and regions, implementation of projects and priority tasks until the end of the year were discussed today. today, investment projects are implemented by investors in various fields of activity. in this regard, the classification of investment activity is considered as a separate object of study in a number of economic and legal literatures. the general idea is that the classification of investment activities is explained directly in connection with the type of investment. based on the above, if the goal of investment activity is to achieve a high level of social and economic development of society, its means are investment, investment potential and investment processes. obtaining income from investment assets, increasing existing capital and investment resources and creating conditions for their effective use are evaluated as the result of investment activity. also, investment activity: 1) independent activity; 2) investment of property and property rights; 3) according to risk; 4) aimed at obtaining profit or achieving other positive results; 5) implemented in a certain legal form; 6) representing the target use of investment means; 7) it is distinguished from other types of activity by its specific characteristics, such as being carried out in several stages. during the last six months of this year, 3.6 billion dollars worth of investments were made in the networks. more than 50 million dollars of direct investment was attracted to andijan city, buloqboshi, romitan, ghallarol, forish, karmana, davlatabad, chust, kattakorgan, and syrdaryo districts. as a result, a total of 50,000 new jobs were created in these districts, and additional income of 1 trillion soums was generated. today, additional tasks have been set to accelerate 1,500 projects in investment programs and to absorb more than 12 billion dollars of foreign investments. also, the head of our state showed a specific algorithm of actions for attracting investments and implementing projects in each sector and region. in particular, within the framework of the state investment program, it was decided to organize a "project" work on the early commissioning of 272 large projects worth 11.5 billion dollars. in particular, it will be possible to start 29 projects earlier by accelerating construction, and 49 projects by helping to bring and install equipment. as a result, 700 million dollars’ worth of investments will be utilized 2-3 months ahead of schedule. the president gave instructions to the minister of transport and ambassadors of our country in this regard. it was decided to allocate another 100 million dollars in addition to the 1.2 trillion soums provided for infrastructure projects in the regions. at the same time, it is necessary to absorb 4.4 billion dollars of foreign direct investment in the framework of 230 projects in the sectors, 4.6 billion american journal of business management, economics and banking volume 24 may 2024 p a g e | 74 www.americanjournal.org dollars in the framework of 1200 projects in the regions. projects are divided into 3 categories and dealt with individually. that is, the regional governor's deputy for investment is responsible for large projects, the district governor is responsible for medium projects, and the district governor's deputy for investment is responsible for small projects. officials were attached to each region to effectively implement this system and solve issues on the spot [6]. if we pay attention to the investment forecasts for 2025-2030, it is expected that 379,772 billion soums will be invested in 2025 and 746,870 billion soums in 2030. it is projected to reach a growth rate of 109.0 percent in 2025 and 109.7 percent in 2030. in addition, direct investments will amount to 75,036 billion soums in 2025 and 166,337 billion soums in 2030, with a growth rate of 111.5 percent in 2025. and is projected to reach a growth rate of 112.3 percent in 2030, and much work is currently being done in the economy to achieve these figures (table 1). today, the results of investment partnership with partner countries were also reviewed. in particular, in the last two years, many agreements have been reached at high-level meetings with saudi arabia, france, hungary, singapore, egypt, germany, china, italy, qatar and other countries, which has become important in the economic development of our country. in this regard, we can see that there are positive changes in cooperation with hungary, pakistan, thailand, the czech republic and japan, and investment attraction from these countries has reached 450 million dollars this year alone. now it is decided to introduce a new system for working with investors within the framework of foreign agreements. according to it, the position of "investment manager" will be established in the ministry of investment and foreign trade and will report directly to the minister. they are in constant contact with foreign investors and solve the necessary issues. working on the basis of this system, it was mentioned that an additional 3 billion dollars of investment can be attracted this year. also, it was shown that the investment projects formed in most regions, districts and cities do not correspond to the real possibilities. table 1 forecast of investment in fixed assets by resources (2025-2030) indicators 2025 (forecast) 2030 (forecast) billion soum growth rate, % total in percent billion soum growth rate, % total in percent capital investments, total (billion soums) 379 772 109,0 100,0 746 870 109,7 100,0 focused investments: 96 712 105,3 25,5 141 797 103,9 19,0 budget funds, including extra-budget funds 29 263 109,8 7,7 46 685 104,0 6,3 recovery and development fund 16 518 103,5 4,3 23 040 103,5 3,1 foreign investments and state-guaranteed loans 50 931 103,5 13,4 72 072 104,0 9,6 decentralized investments: population funds 283 060 110,4 74,5 605 073 111,2 81,0 enterprise funds 108 816 108,2 28,7 198 589 109,0 26,6 commercial bank loans and other debt funds 62 121 113,7 16,4 170 365 113,4 22,8 direct foreign investments 75 036 111,5 19,8 166 337 112,3 22,3 population funds 37 086 109,1 9,8 69 782 109,7 9,3 american journal of business management, economics and banking volume 24 may 2024 p a g e | 75 www.americanjournal.org in particular, in the last two months, consulting companies were attracted to 60 districts with low industrial development, and more than 2,000 promising projects worth 6.5 billion dollars were found. this means an average investment of 110 million dollars and hundreds of jobs in each district. based on this, together with consulting companies, in all districts and cities, the task of forming new projects based on the principle of "research development implementation" was set. to present them to foreign investors, a regional investment forum will be held in each region before the end of the year. also, 97 large-scale industrial projects have been developed by the government commission, which will give a great impetus to the economy. through this project, 6.7 billion dollars will be used, 3 billion dollars’ worth of products will be produced and more than 27 thousand jobs will be created. today, it was noted that the president will introduce a new system for launching 1,500 projects in the investment program and absorbing 12.1 billion dollars of foreign investments. in a word, the launch of such investments will serve the further development of our country in terms of socio-economics, as well as the creation of vacancies with quality and decent working conditions, thereby increasing the income of the population and creating comfortable living conditions. another important aspect, as noted at the meeting, is that foreign investments are widely attracted to our country, the conditions created in our country, the existence of strong legislation, sufficient conditions and infrastructures for them to implement investment projects without fear or hesitation, the most important thing, there should be no barriers, no corruption. foreign investors should feel the presence of such conditions as soon as they enter our country [6]. it is aimed at attracting the heads of large foreign investments, financial and economic organizations and companies interested in integrating into the rapidly developing market of uzbekistan. on april 27-28, the second tashkent international investment forum was held in the congress hall of our capital, tashkent, with the participation of more than 2,500 participants from the usa, european union, great britain, cis, turkey, china, south-east asia, india, egypt, and the countries of the middle east. was held and more than 30 expert meetings were planned, including panel sessions, roundtable discussions and b2b talks. during the second tashkent international investment forum, 164 investment agreements and contracts were signed. the total amount of contracts was 11 billion dollars. for comparison, in 2022, documents worth 7.8 billion dollars were signed at the investment forum in 105 years [7]. as part of txif-2023, a panel session "modern construction and building materials industry" was held, where experts discussed the prospects for the development of the industry. conclusion in conclusion, we found it desirable to present some thoughts, ideas and suggestions as an improvement of the reforms implemented in the country to increase the investment attractiveness of the country by improving the foreign investment potential. in particular, we should mention the increase of investment potential in the regions and the growth of the national economy in all aspects as a result of its impact on the regional economy as the main basis of investment attractiveness. it is also necessary to increase the attention to increase the standard of living of the population and decrease the level of unemployment as the most important priority of the socio-economic development of the country. american journal of business management, economics and banking volume 24 may 2024 p a g e | 76 www.americanjournal.org references 1. law lru-598 "on investments and investment activities". 2. pardaev m.q., khalikulov a.n., jumaeva g. analysis of investment projects. study guide. t.: "science and technology" publishing house, 2019. 234 pages. 3. kabilov a.e. a multi-criteria decision-making model for the assessment of foreign direct investment priorities in the kashkadarya region // "economics and innovative technologies" scientific electronic journal. no. 4, july-august, 2020 4. kseniya e. azzheurova e.a. mediterranean // journal of social sciences mcser publishing, rome-italy vol. 6, no. 5, s2 september 2015. 5. azamat k. et al. improving the investment environment in the country: the role and analysis of banks in the modernization of industry //journal of positive school psychology. – 2022. – т. 6. – №. 10. – с. 2220-2227. 6. https://parliament.gov.uz/articles/1594# 7. https://invest.gov.uz/oz/mediacenter/news/results-of-the-second-tashkent-internationalinvestment-forum-2023/ https://parliament.gov.uz/articles/1594 https://invest.gov.uz/oz/mediacenter/news/results-of-the-second-tashkent-international-investment-forum-2023/ https://invest.gov.uz/oz/mediacenter/news/results-of-the-second-tashkent-international-investment-forum-2023/ american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 90 www.americanjournal.org some aspects of improving the regulation of foreign trade activities of business entities turayev n. m. tashkent state university of economics n.turayev@tsue.uz a b s t r a c t k e y w o r d s the analysis of external and internal factors in the development of foreign trade activities of business entities showed unique results. in the organization and internal organization of foreign trade activities of business entities, collecting data and reexamining them creates a factor such as the attitude of an entrepreneur. most of the problems are related to the legal and economic literacy of the entrepreneur, and it shows his attitude to social processes. business entities, foreign trade activities, export-import of goods and services, foreign trade contracts, transport contracts, customs warehouses, road tracking documents, certificates, innovative and digital technologies, time factor, management. introduction business entities should pay special attention to the following aspects in the development of foreign trade activities: to obtain high efficiency from the trade of goods and services by optimizing the processes of regulating foreign economic activity, as well as to liberalize the movement of financial capital and increase the effectiveness of the preferential regime, the world trade organization in this regard it is of particular importance to organize foreign trade in harmony with its activities. expanding all-round support for entrepreneurship, including protecting the interests of local producers in the international market, while studying the existing problems in the regulation of foreign trade activities, creates the task of finding scientifically based, comprehensively useful solutions to them. before carrying out foreign trade activities at the enterprise level, careful planning, as well as the optimal organization of the process in the form of various operations, as well as the management of successful regulatory affairs through effective control, is the main goal of every entrepreneur engaged in foreign trade today. profit obtained without compliance with such regulations may lead to excessive costs and loss of time resources for an entrepreneur who is a subject of foreign trade, the results of observations have shown that in practice, some of our entrepreneurs, when they start conducting foreign trade activities, do not have knowledge in this regard and skills, experience shortages are observed, as a result of which they are forced to accept the occurrence of excessive unexpected costs. the main problem in the implementation of this activity is to study the aspects necessary for the effective implementation of foreign trade activities by the business entity. to be more precise, in the american journal of business management, economics and banking volume 25 june 2024 p a g e | 91 www.americanjournal.org organization of foreign trade in the enterprise, it is assumed to pay attention to the existing national and international legal norms, to logically organize the work.[1] literature review: in this topic, the theoretical information about the methods of regulation of foreign trade within the framework of the national economy from the book "international microeconomics" by alexei kireyev was obtained, in which the author describes the tariff and notarial methods of influencing the national economy, as well as through currency opinions on regulation were received. in addition, based on the book "export and import operations" by erkin gadoyev, ideas were obtained on the organization and regulation of foreign trade activities of business entities at the enterprise level. the theory of protectionism is mostly associated with the name of the australian scientist max corden. methodology when conducting research on the organization of foreign trade activities of business entities, economic methods, analytical and synthetic, as well as analysis, synthesis, induction and deduction methods were used, as well as the results obtained by statistical and econometric methods were analyzed. result regarding foreign trade, historically, mercantilists have expressed valuable opinions about maintaining a positive balance of foreign trade or creating a positive balance of it, that is, they emphasized that it is possible to increase the export potential first of all, they accepted that population employment will increase. they thought that foreign trade should be developed in order to earn more money because of the invasions and gifts of little importance and for this they believed that one rule is that more goods should be exported to the country from which the goods are bought than what was bought from them. conducting an active export policy, in this regard, they increase the level of processing of exported goods, use their own transport in foreign trade, save domestic raw material resources, encourage the export of goods, and reduce customs duties on raw material resources imported from abroad. focused on reducing tariffs, promoting goods offered by local producers, and eliminating factors that make local goods very expensive. ensuring the flow of money to the state, in this regard, they analyzed the export of wealth by dividing it into two groups, the first is natural wealth wealth that can be extracted from the earth and the second is artificial wealth industrial products. they aim to accumulate gold, silver and precious stones as the main wealth, they believe that such wealth will never lose its value, bread, meat, wine and other such goods to accumulate gold and silver in the state those who consider it a tool. another aspect, while paying special attention to re-export, they also paid special attention to the issue of buying cheaply from one country and selling it more expensively to another country.[2] carrying out protectionist policy. the state encourages exports and tries to reduce imports in order to ensure a positive foreign trade balance by means of customs tariffs and restrictions (quotas). according to william petty, the state can increase the volume of imports in proportion to the volume of exports, besides, in order not to stop production, it is necessary to encourage the sale of goods, even if there is not much profit. production of industrial products for export and increasing the share of finished products in it. mercantilists argued that a country would benefit more from exports of manufactured goods than from american journal of business management, economics and banking volume 25 june 2024 p a g e | 92 www.americanjournal.org exports of raw materials, so that exports of raw materials should be limited or banned altogether, rather than encouraging imports of cheap raw materials to compete. they expressed the opinion that it supports the production of finished products and serves to maintain gold and silver reserves in the country. according to their opinion, industry is more profitable than agriculture, trade is more profitable than industry, and the state should fully reprocess its mined minerals into ready-made products. prohibition of foreign trade for colonial countries. mercantilists introduced the ideas of selling the goods of the colonial countries cheaply and at a high price, not allowing them to create finished products, and turning them into a source of raw materials. establishing control over gold and silver reserves and prohibiting withdrawal of money by private individuals. here, mercantilists focus on the issue of employment, and for any economy, the issue of employment is not completely solved, that is, there is a surplus of labor, hiring them increases the volume of production, and for this, of course, there must be a lot of money reserves. who expressed the opinion that in addition, they said that if the issue of employment is fully resolved, foreign money will cause inflation, that is, the depreciation of money, and with these thoughts, they took the first step towards the fact that employment and inflation are interrelated. theoretically, if goods produced in excess of consumption in the national economy are exported through foreign trade, some goods are imported during a market shortage. the social importance of foreign trade lies in the fact that by organizing competition in the market, prices are influenced, more precisely, the drop in prices leads to an increase in the well-being of the population. in addition, under the influence of foreign trade, especially modern technologies and innovative devices become important in the development of society. the figure below shows equilibrium at nine different points as a result of an increase or decrease in aggregate demand and aggregate supply. if you pay attention, there are two wavy lines of fluctuations in the figure, the large fluctuation represents the free price in the case of free trade, and the second case represents the price regulation. 1picture. price fluctuations at various equilibrium points resulting from the movement of aggregate demand and aggregate supply. in the regulation of foreign trade in the national economy, the state performs the following functions[3]: ensuring stable economic growth; in this case, by balancing the foreign trade of state-owned enterprises and households, with the production of goods and services, the population's well-being american journal of business management, economics and banking volume 25 june 2024 p a g e | 93 www.americanjournal.org increases, it makes its inhabitants richer, and when economic crises arise, it takes them out of the situation without excessive losses; production of social products; the state provides households and enterprises with security, management, part of education, part of health care, science and art promotion services; income redistribution; the state also collects duties and taxes from foreign trade, pays wages to state workers, purchases goods and services for state needs, implements investment projects of state importance, allocates subsidies to economically weak enterprises and regions, implements international aid; stimulates positive external effects and limits negative effects; the state can set high tax rates on the imports of enterprises, but can implement environmental protection and prevent environmental pollution, or ban the import of harmful goods in general, and can give subsidies to exporters of national importance; establishes the exchange rate and money circulation; the central bank issues money and puts it into circulation, tries to establish control over commercial banks, other financial organizations and inflation, lends to various projects, etc. legal regulation, the legislative bodies of the state issue laws to regulate foreign trade, for example, the law on foreign economic activity, the law on exchange control, the law on securities, anti-monopoly law, etc.; there are different forms of regulation of foreign trade activities, which can be divided into unilateral, bilateral and multilateral forms of regulation. unilateral regulation means unilateral regulation by the state without agreement with trade partners, and bilateral regulation means regulation based on mutual agreement. multilateral regulation refers to the regulation of foreign trade on the basis of multilateral agreements, which means regulation through agreements concluded with integration associations or international organizations. from the point of view of state intervention, it is divided into free trade policy and protectionism policy, in free trade policy, the state interferes minimally in regulating foreign trade, foreign trade market develops on the basis of supply and demand, and in protectionism, the domestic market is protected from foreign competition, trade policy is tariff and notary methods are used. the debate between the supporters of protectionism and free trade on the development of domestic production or the comparison of domestic production costs and international production costs is still ongoing. as can be seen from history, foreign trade policy has never been on one side, but has always shifted from one side to the other. in the 1950s and 1960s, rapid steps were taken to abandon protectionism and free trade in the international economy. by the beginning of the 1970s, on the contrary, the practice of regulating the internal market by tariff and notarial methods was observed. in the 1980s and 1990s, this tradition was further developed. is stretched. developed countries reflect the export of industrial products between developing countries, while developing countries reflect mutual traditional exports. the development of protectionism has given rise to its several forms: selected (selective) protectionism will be aimed at individual goods and individual countries; sectoral protectionism protects certain sectors, for example, agriculture is called agrarian protectionism; collective protectionism, a certain group of countries is protected from a country that is not a member of its group; american journal of business management, economics and banking volume 25 june 2024 p a g e | 94 www.americanjournal.org covert protectionism is implemented using methods of domestic economic policy; the role of business entities in the implementation of foreign trade is incomparable, it is very important for the stability and future development of the national economy. from the point of view of the activity of business entities in the real sector of the economy, they are of particular importance in creating economic prosperity. discussion the issue of self-regulation of the business entity's own activities through the successive application of management functions in the organization of foreign trade within the framework of its own enterprise, the legal organization of foreign trade activities, and the economically efficient implementation of foreign trade operations are always does not happen as desired, each operation is similar to the implementation of a project in terms of importance. strict compliance with the legislation in compliance with the legal regulations, rules and procedures developed by the state to regulate the foreign trade activities of enterprises, and the implementation of foreign trade activities without committing various offenses is a uniquely complex issue that requires special attention. is considered in this case, when monitoring the foreign trade activity of a business entity, we see that the first thing to do is to monitor compliance with the law, although the cost accounting, the study of a number of other factors in the process of organizing foreign trade activity is neglected. is similar, because the effective implementation of foreign trade activities by business entities leads to the gross growth of this type of activity in the national economy. in addition to the legal factor, there are economic and social factors, it is necessary to take into account these factors in a coordinated manner, analyze them, and focus on decision-making.[1] if we take the goods and services participating in it as the object of foreign trade activity, the subject can be an entrepreneur, so entrepreneurs who have modern knowledge and skills to organize foreign trade activities will contribute to the development of the national economy and plays an important role in improving the well-being of the population. it is known that the most important first aspect for enterprises in the organization of foreign trade activities is the implementation of a perfect project during the conclusion of foreign trade contracts. why do we interpret the foreign trade contract as a project? requires doing. the reason why the contract is regarded as another project is that the foreign trade contract concluded in haste with various errors will cause excessive costs, that is, when the consequences not foreseen in the foreign trade contract occur, its effect will cause direct and indirect unexpected costs, in this respect the project features in full. the preparation of cargo tracking documents in accordance with the contract serves for the timely and successful implementation of the customs clearance process, as well as shortens the certification period, in addition, it does not leave room for unnecessary questions during the implementation of the customs audit. usually, after negotiations are concluded, a contract is concluded between the parties, and cargo tracking documents are prepared on the basis of this contract, shipments are carried out after the compliance of the cargo tracking documents with the contract is confirmed between the parties, but in practice, in some cases, when the cargo begins to arrive, instead of the agreed documents, cargo with various errors we accept tracking documents. in such cases, these errors cause excessive unexpected stress to the specialist organizing foreign trade activities, affect time, excessive costs and nerves, lead to the lengthening of the customs clearance process, correct digitization saves time and corrects the error riling takes too much time. american journal of business management, economics and banking volume 25 june 2024 p a g e | 95 www.americanjournal.org summary as long as the business entity engaged in foreign trade does not start the mechanism of internal regulation in response to various requirements of the state regarding the regulation of foreign trade, the result and effect of a unilateral approach will not be as we expected. at a time when behavioral economics is being intensively studied today, observations, researches, and experiences have shown that even a highly effective customs audit will not fully show its positive results if the internal regulation is not properly implemented within the enterprise does not show. an entrepreneur who says that he will engage in international trade without deep knowledge of the state's foreign policy in the organization of foreign trade will lose, the results of the analysis show that today the ideas of mercantilists serve as the implementation of the foreign trade program of most developing countries, but we must not forget that raw for countries rich in material resources, the ideas of mercantilism may come in handy, but for countries with limited resources, it is necessary to liberalize foreign trade. references 1. turayev nurbek, "74-91 international level," green economy and development no. 5, pp. 552– 556, 2024, [online]. available: https://yashil-iqtisodiyot-taraqqiyot.uz 2. turayev nurbek, "74-91 international level," green economy and development no. 3, pp. 911– 918, 2024, [online]. available: https://yashil-iqtisodiyot-taraqqiyot.uz 3. a. kireyev, moscow "international economy" 2014 mejdunarodnaya mikroekonomika alexey kireev. 4. e.f. gadoyev "export and import operation" tashkent "norma" 2009. 5. n. v. kireyenka, "methodological approaches to the classification of requirements for the access of agricultural products to markets used in world practice," agrarian economics, no. 4, 2022, doi: 10.29235/1818-9806-2022-4-63-79. v. s. neudakhin, "theoretical and conceptual aspects of customs regulation of export," entrepreneur's guide, vol. 16, no. 2, 2023, doi: 10.24182/20739885-2023-16-2-103-109. 6. d. e. barsegyan, "influence of customs and tariff regulation measures in foreign trade activity on the formation of internal prices of the eurasian economic union," vestnik universiteta, no. 2, 2020, doi: 10.26425/1816-42772020-2-104-109. 7. a. aksenevich, "key performance indicators of foreign entities of commodity distribution networks," science and innovations, no. 4, 2022, doi: 10.29235/1818-9857-2022-4-45-49. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 1 www.americanjournal.org studying the effect of analyzing the relationship between some monetary variables and reality on the iraqi balance of payments the first researcher: anwar mezher hamdullah sumer university college of management and economics department of business administration anwar.mozher2102p@coadec.uobaghdad.edu.iq the second researcher: zahrah khlaif rafak wasit university, college of education for human sciences zamankjiop@gmail.com a b s t r a c t k e y w o r d s the research aims to know the impact of the most important factors affecting the iraqi balance of payments (1991-2017 ad) in order to reach a standard model for the relationship between variables and know their importance and the extent of their impact on the balance of payments. in order to achieve this goal, the study sought to test hypotheses that have a moral effect and a linear relationship between both gdp, nominal exchange rate and real exchange rate in iraq. the independent variables included in the model are more likely to explain the scale model than the independent variables not included. the most important of the results reached is that the values of the balance of payments in iraq can be represented by a linear equation with the values of the gross domestic product and the values of the exchange rate, and that these variables together have a significant impact on the balance of payments, and that their interpretation rate is high, as they carry a significant percentage that explains 95% of the value. balance of payments, while 5% could be due to random, unmeasurable factors such as the turbulent security and political situation. balance of payments real exchange rate gross domestic product. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 2 www.americanjournal.org دراسة اثر تحليل العالقة بين بعض المتغيرات النقدية والحقيقة على ميزان المدفوعات العراقي الملخص الوصول بغية م( 20171991) العراقي ات المدفوع ميزان على المؤثرة العوامل أهم تأثير لمعرفة البحث يهدف تحقيق أجل ومن المدفوعات ميزان على ثيرهاتا ومدى اهميتها ومعرفة المتغيرات بين للعالقة قياسي نموذج إلى الناتج من كل بين خطية وعالقة معنوي تأثير لها يكون التي الفرضيات إختبار ىال الدراسة سعت الهدف هذا .العراق في الحقيقي الصرف وسعر االسمي الصرف وسعر المحلي االجمالي غير قلةالمست المتغيرات من ميزان ال لنموذج تفسيرا األكثر هي النموذج في المضمنة المستقلة المتغيرات أما دلة بمعا تمثل أن يمكن العراق في المدفوعات ميزان قيم أن هي إليها التوصل تم التي النتائج هاأهم من المضمنة. ميزان ىعل معنوي تأثير ذات مجتمعة المتغيرات هذه وأن الصرفسعر وقيم االجمالي المحلي قيم مع خطية حين في المدفوعات ميزان قيمة من ٪95 نسبته تفسر معنوي تحمل أنها حيث عالية سيرها تف نسبة وأن المدفوعات .المضطرب والسياسي االمني الوضع مثل للقياس قابلة غير عشوائية عوامل الى ود عت أن يمكن ٪5 نسبته ما أن الناتج المحلي اإلجمالي -سعر الصرف الحقيقي -ميزان المدفوعات -الكلمات المفتاحية المقدمة التجارة تعد اذ الدولية االقتصادية العالقات عليها ترتكز التي التحليلية األدوات أبرز من المدفوعات ميزان يعد العالم دول عزل يمكن ال اذ الدولة اقتصاد في ألهميتها والمالية االقتصادية الدراسات في مهما مجاال الدولية كما , بينها فيما االموال رؤوس وانتقال والخدمات السلع انتقال مجال في خصوصا االخر البعض عن بعضها الى العالمية والمواصالت االتصال وسائل في الهائل التطور ت رافق التي التجارية للمبادالت الكبير التوسع ادى عالقة هنالك ظهر العالمية المتغيرات تسارع ومع , الدولية المالية االمور صعيد على المشاكل من الكثير ظهور خالل من العراقي االقتصاد في المدفوعات ميزان على واضح أثرها العالقة وهذه الناتجو الصرف سعر بين تبادلية االستثمار على تأثيرهما خالل من وكذلك المدفوعات، ميزان في الجاري والميزان الخارجية التجارة حجم في تأثيرهما والخارجي. الداخلي المال راس وتدفق يالخارج على االقتصادية المتغيرات بعض تاثير مدى ما التالي الرئيسي السؤال في البحث مشكله تكمن البحث: مشكله العراق في المدفوعات ميزان american journal of business management, economics and banking volume 21 february, 2024 p a g e | 3 www.americanjournal.org : ياتي فيما دراسه من الهدف يتمثل هدف ثانيا العراقي. المدفوعات ميزان على المحلي االجمالي الناتجو الصرف سعر من كال تأثير دراسة -1 المتغيرات وبعض المدفوعات ميزان بين العالقه تحديد خالل من دد المتع الخطي االنحدار نموذج بناء -2 . الحقيقي صرف سعر و المحلي االجمالي الناتج من كل في المتمثلة االقتصادية : البحث فرضيه ثانيا فالعوامل , العراق في المدفوعات ميزان في تؤثر ونقدية حقيقية عوامل هناك ان مفادها فرضية إلى البحث استند (gdp ) اإلجمالي المحلي الناتجب تتمثل الحقيقية والعوامل الحقيقي سعرالصرف من بكال متمثلة النقدية النظري اإلطار :اوال المدفوعات وميزان المحلي االجمالي الناتج بين العالقة : 1 لدولة السنوي اإلنتاج أّنه على يعرف المحلي االجمالي الناتجف االقتصاد في كبير أهمية المحلي االجمالي للدخل غير والمواد السلع إنتاج إلى ُيؤّدي مّما الطبيعية، الدولة موارد في المال ورأس العمل توظيف عن والناجم ما .الوطنية باألرباح أو للدولة الحقيقي السنوي الناتج بصافي أيضا وُيسّمى المختلفة، الخدمات إلى باإلضافة المادية الحقيقي( الصرف سعر )انخفاض نتيجة ما بلد لصادرات التنافسية القدرة ارتفاع يؤدي العالمي المستوى فعلى نتيجة لصادراته التنافسية القدرة انخفاض حالة في اما المحلي االجمالي الناتج في وزيادة صادراته قيمة ارتفاع إلى . المحلي االجمالي الناتج في وانخفاض الصادرات في نخفاض الا إلى يؤدي الحقيقي( الصرف سعر )ارتفاع بين تتم التي االقتصادية المعامالت لكافة حسابي بيان أو منظم سجل بأنه يمثل بلد الي المدفوعات ميزان ان ما وعادة معينة زمنية مدة خالل أخرى، دول في والمقيمين المدفوعات لميزان المعدة الدولة داخل في المقيمين .(g.haberler, 1969) هوحد تكون لمدة سنة احدهما قيدين شكل في معاملة كل تظهر بحيث مزدوج, قيد ذي محاسبي بيان شكل المعامالت تسجيل نظام ويتخذ التي المالية والبنود بالصادرات متمثلة الحقيقية الموارد على: الدائنة القيود وتشمل مدين. قيد وآالخر دائن قيد الخارجية. خصومه في نقصا أو لالقتصاد الخارجية األصول في زيادة أما تظهر أما تظهر التي المالية والبنود باالستيرادات متمثلة الحقيقية الموارد تشمل: المدينة القيود فان ذلك، وعكس .imf, pp. 6)-(8 الخارجية الخصوم في نقصا أو األصول في زيادة للدولة. المحلي االجمالي االقتصاد وتركيبة هيكل يعكس كونه في تبرز المدفوعات ميزان أهمية ن ا american journal of business management, economics and banking volume 21 february, 2024 p a g e | 4 www.americanjournal.org التجارة من النقدية الجوانب لتحليل رئيسة أداة ويشكل للدولة الخارجي االقتصادي المركز يظهر كما حدث ما إذ للتعديل الحاجة حبث من للدولة الصرف وسياسات والنقدية المالية للسياساته مؤشرا ويعد بلد، ألي خارجي. اختالل : ي اآلتــــ أبرزها الفوائد من جملة هناك المدفوعات ميزان فوائد بشكل العالم انحاء وباقي الدولة في المقيمين بين المتعددة المعامالت جميع يضم مختصر حساب انـه االقتصادي ز ك المر عن اخبارها ثـم ومن للدولة االقتصادية العالقات حالة لوصف يستخدم 2 .وموجز اجمالي الخارجية والتجارة والمالية النقدية السياسات تخص قرارات الى الوصول في للمساعدة تحتله الذي الدولي الخارجي والتمويل في األموال رؤوس أصحاب أرباح وتزداد مربحة تصبح الصادرات فإن التصدير، لقطاع التنافسية القدرة فارتفاع ير التص لقطاع التنافسية القدرة فاض انخ عند العكس ويحصل للعمال، الشرائية القوة فيه تنخفض الذي الوقت . (1997)الصادق واخرون، للعمال الشرائية القوة وترتفع الدولية السلع قطاع في العاملة الشركات أرباح فتنخفض المدفوعات ميزان على وانعكاسها الموارد تخصيص باعادة الصرف سعر عالقة :2-1 standard للقيمة مقياسا تستعمل إنها إذ خصائص، من لها لما كبير بشكل االقتصادية الحياة في النقود تستخدم value of للتبادل ووسيطا exchange of medium للقيمة ومخزنا value of store . ، 2002) الغالبي ، (5صفحة والتي العملة بهذه تتعامل التي النقدية المنطقة أو العملة صاحبة الدولة حدود في تكون الخصائص هذه ان اال بهذه والمالية االقتصادية المعامالت جميع تسوية يمكن إذ الدولة، تلك قانون ظل في محدودة غير إبراء بقوة تتمتع التبادل عن يختلف المحلي التبادل إن المعروف فمن دولي تبادل حصل إذا تعقيدا اكثر يكون األمر إن إال ،العملة للدولة المحلية العملة خالل من فيتم المحلي أما المختلفة الدولية بالعمالت تسويته تتم الدولي التبادل الن الدولي النقدية القيم قياس وكذلك العمالت قيم تباين مشكلة منها المشاكل من مجموعة تبرز االختالف هذا وبسبب )كنونه، .جميعا الحلول إيجاد اجل من الصرف بسعر يعرف ما أوجدت التي هي مجتمعة المشكالت وهذه وتسويتها األسعار, نظام في تأثير من له لما وذلك االقتصاد في كبيرة أهمية الصرف لسعر إنو (203، صفحة 1987 البلد. وواردات صادرات حجم في يؤثر انه إلى باإلضافة american journal of business management, economics and banking volume 21 february, 2024 p a g e | 5 www.americanjournal.org على للمحافظة وسيلة كونه االقتصاد في وبارزا كبيرا دورا real exchange rate الحقيقي الصرف سعرول الحقيقي الصرف سعر ان اذ لالسعار العام المستوى ارتفاع معدالت مواجهة في وكذلك للبلد الدولية التنافسية القدرة اآلتية: الرياضية العالقة خالل من ذلك توضيح ويمكن العالمي بالسوق المحلي السوق ربطي يقوم (i) ………… الحقيقي الصرف سعر :re أن إذ pd: المحلية بالعملة لألسعار القياسي الرقم e : االسمي الصرف سعر pf: األجنبية بالعملة والخدمات السلع ألسعار القياسي الرقم ( يالحظ انه في ظل نظام صرف ثابت وأتباع سياسة اقتصادية تجارية توسعية فان هذا iومن خالل المعادلة ) يؤدي إلى ارتفاع السعر داخل الدولة وبالتالي ارتفاع سعر الصرف الحقيقي وهو ما يؤدي إلى انخفاض القدرة التنافسية للبلد. تحويل إلى الحقيقي الصرف سعر يؤدي اذ ، الموارد تخصيص في التغير الى يؤدي الصرف سعر في التغيير ان ، صفحة 1987)كنونه، أخرى صناعية فروع تعطيل أو معينة صناعات تطوير يتم فقد القطاعات بين الموارد الموارد وتحويل بالتصدير مختصة صناعية فروع تعطيل إلى ؤديي سوف الحقيقي الصرف سعر ،ارتفاع (204 غير التصدير اجل من اإلنتاج ويصبح بها( المتاجر غير )السلع دوليا المتداولة غير السلع قطاع إلى جذبها أو خالل من للتصدير المخصصة الصناعات تطوير إلى يؤدي الحقيقي الصرف سعر انخفاض حالة في أما مربح، وفي التصدير قطاع في المال( ورأس )العمل اإلنتاج عاملي استخدام وزيادة القطاعات بقية من الموارد تحويل .(20، صفحة 1997)الصادق واخرون، لالستيراد المنافسة الصناعات التنافسية والقدرة الحقيقي الصرف سعر بين عكسية عالقة هناك إن أعاله الرياضية العالقة خالل من يتضح أي وبالعكس المدفوعات ميزان على التاثير وبالتالي التنافسية القدرة تزداد الحقيقي الصرف سعر ينخفض فعندما اآلتي: الشكل خالل من هذا توضيح ويمكن الدولية التنافسية القدرة تنخفض الحقيقي الصرف سعر يرتفع عندما الدولية التنافسية والقدرة الحقيقي الصرف سعر بين العالقة)1) شكل pfe pd . re= american journal of business management, economics and banking volume 21 february, 2024 p a g e | 6 www.americanjournal.org الباحث. إعداد من المصدر: للبحث التحليلي الجانب :ثانيا المدفوعات ميزان على الصرف سعر أثر:1 أ سعر في يؤثر المدفوعات ميزان نإ إذ المدفوعات، ميزان التاوح الصرف سعر بين تبادلية عالقة هناك المدفوعات ميزان فيها يكون التي الحالة ففي المدفوعات، ميزان في يؤثر الصرف سعر أن كما هذا ،الصرف األجنبية العمالت على الداخلي الطلب تساوي خالل من التوازن، إلى يميل الصرف سعر فإن التوازن، إلى الدول على المستحقات استخدام )لغرض العمالت هذه عرض مع ،المدفوعات( ميزان في االلتزامات )لتسديد (. األجنبية سعر ارتفاع إلى يؤدي مما عرضه على يزيد األجنبي الصرف على الطلب يكون العجز حالة في أما عن األجنبي العرض زيادة بسبب ينخفض األجنبي الصرف سعر فإن الفائض حالة في أما األجنبي، الصرف .(thomas a . pugel , h. lindert , 2000, p. 480) الطلب ا حدود هناك أن كما المدفوعات، ميزان في الفائض أو العجز من تحد أن يمكن الصرف سعر في التغيرات أن األجنبي الصرف على الطلب منحنى يكون عندما ذلك ويتحقق ،دائما فراتتو نأ يجب لمرونة ل الشروط من دنيا ,.udegbunam, r. i) نسبيا ومرنا موجب األجنبي الصرف عرض يكون وحيث نسبيا، ومرنا سلبي ميل ذو 2003, p. 69). العراق. في الصرف وسعر المدفوعات ميزان تطور تحليل :2 الصرف سعر في التغير عن يعبر بماذا مهمة، اسئلة تثار المدفوعان، ميزان على المؤثرة مؤشرات ال بعض لتناول مدتي على تناول سيتم األسئلة، تلك عن ولإلجابة ؟الصرف سعر ونمو نفسه الناتج نمو عالقتها وما ،والحقيقي يأتي: كماو سعر الصرف الحقيقي ت را صاد سية لل رة التناف القد american journal of business management, economics and banking volume 21 february, 2024 p a g e | 7 www.americanjournal.org بيانات الجدول ) (2002-1990) األولى المدة-أ وفي )عجز(سالبة كانت المدفوعات ميزان قيمة أن(1من التوالي وعلى األعوام في دينار مليون (11167753 ،-494389.2 ، 48.7-) بلغت إذ العجز في تزايد حالة ( 41022927.4 ،15093144 ،42451.6) المحلي االجمالي الناتج كان بينما م (2002 ،1997 ،1991) (0.3108) فكان االسمي الصرف سعر أما م، (2002 ، 1997 ،1991) التوالي وعلى األعوام في دينار مليون ، 4.75) التوالي وعلى االرتفاع كان حيث متزايد الحقيقي الصرف سعر كان حين في األولى المدة سنوات لجميع (2002 ،1997 ، 1991) التوالي وعلى للسنوات الواحد الدوالر مقابل دينار (2668.35 ، 1498.81 دينار لكل دوالر (2002-1991 )في العراق للمدةبعض المتغيرات الحقيقية والنقدية ( تطور 1الجدول ) وعجز ميزان المدفوعات باألسعار الجارية فائض الناتج المحلي االجمالي 1سعر الصرف الحقيقي السنة 1991 4.75 42451.6 -48.7 1992 13.16 115108.4 -383.2 1993 23.52 321646.9 -427.5 1994 70.72 1658325.8 -1052.6 1995 410.12 6695482.9 -163353.1 1996 1810.94 6500924.6 -168345.6 1997 1498.81 15093144 -494389.2 1998 1811.04 17125847.5 -509498.5 1999 2059.38 34464012.6 -606399.8 2000 2281.59 50213699.9 -985048.5 2001 2336.88 41314568.5 -1552130.1 2002 2668.35 41022927.4 -1551269.6 وزارة التخطيط العراقية نشرات الجهاز المركزي لإلحصاء سنوات مختلفة -1المصدر: ( من إعداد الباحث،2،3العمود )-2 pd سعر الصرف الحقيقي وفق المعادلة:. يمكن الحصول على -3 e∗pf re= reيمثل سعر الصرف الحقيقي : ، pd مستوى األسعار في الداخل : ،e سعر الصرف االسمي : ،pf مستوى األسعار في الخارج : . . 545المصدر السابق، ص انظر دبليو تشارلز سوير، ريتشارد ل سبرينكل، االقتصاد الدولي،_ american journal of business management, economics and banking volume 21 february, 2024 p a g e | 8 www.americanjournal.org (2003-2017) الثانية المدة-ب 2003 عام في (-11167753بلغت) اذا سالبة)عجز( كانت المدفوعات لميزان قيمة أن يظهر(2من جدول ) وعلى األعوام في دينار مليون (5284248.8،14359099،9165809.4بلغت) إذ فائض إلى تحول ثم ( 29585788.6)بلغ إذ تزايد حالة قيء المحلي االجمالي الناتج كان بينما (م2014 ، 2008 ،2004التوالي) نتيجة تخللتها سنوات ارتفاع وانخفاض 2017 عام في (225722375وارتفع الى ) (م2003) عام في دينار مليون بالتذبذب واخذ م 2003 عام في (1453) فكان االسمي الصرف سعر أما ، النفط سعر انخفاض و العالمية األزمة دينار (1.08) بلغ إذ الحقيقي الصرف سعر انخفض حين في عام العملة مزاد وفتح المركزي نكالب تدخل نتيجة الواحد الدوالر مقابل دينار الف (3.25،3.55،3.39التوالي) وعلى بلغ أن إلى باالرتفاع اخذ ثم الدوالر مقابل دينار لكل دوالر (2017-2003 )في العراق للمدةبعض المتغيرات الحقيقية والنقدية ( تطور 2جدول )ال 2003 3138.38 29585788.6 -11167753 2004 0.65 53235358.7 -3719669.9 2005 1.08 73533598.6 5284248.8 2006 1.42 95587954.8 6443638.5 2007 2.12 111455813 10842458 2008 3.16 155982258 14359099 2009 3.30 130643200 22492382 2010 3.27 162064566 -6806241 2011 3.29 217327107 7354971 2012 3.39 251907662 12160629 2013 3.55 271091778 10792554 2014 3.39 260610438 9165809.4 2015 3.39 207912539 -13841819.2 2016 3.41 196546565 16033584 2017 3.30 225722375 9929479 المركزي لإلحصاء سنوات مختلفة وزارة التخطيط العراقية نشرات الجهاز -1المصدر: الباحث، إعداد من (2،3) العمود-2 pd المعادلة: وفق الحقيقي الصرف سعر على الحصول يمكن .-3 e∗pf =re american journal of business management, economics and banking volume 21 february, 2024 p a g e | 9 www.americanjournal.org re: الحقيقي الصرف سعر يمثل ، pd : الداخل في األسعار مستوى ،e : االسمي الصرف سعر ،pf : الخارج في األسعار مستوى . .545 ص السابق، المصدر الدولي، االقتصاد سبرينكل، ل ريتشارد سوير، تشارلز دبليو انظر _ للبحث العلمي الجانب :ثالثا لإلبطاء الذاتي االنحدار انموذج باستعمال المدفوعات ميزان على الصرف سعر سياسة تاثير تحليل -1 (ardl الموزع( augmented اختبار واجراء .eviews برنامج باستعمال الدراسة متغيرات استقرارية باختبار سنقوم dickegdp – fuller (adf) اختبارو (unit root test table (pp)) السالسل يقيس النه مع الوحدة جذر على تحتوي اي ساكنة غير ام ساكنة المتغيرات ان هل معرفة اجل ومن االجل وقصيرة طويلة التكامل رتبة تحديد تمس التي autocorrelative ذاتيا مرتبطا الخطأ حد فيها يكون التي الحاالت يناقش المطورdf اختبار ان االنحداري المركب إضافة خالل من زمني ا المتغيرات بإبطاء يقوم أي انه، االنحدار لنموذج األساسية الفرضيات gdp δ,1−t  gdp δ  الفترات تباطؤات adfالنموذج يختبر اذ المذكورة، المشكلة لتجاوز 𝜆∆gdp t−1 المزيد p−t  gdp δ,...,2−t 0 وبفرضية التابع، للمتغير =δ و أوال، عام اتجاه وبدون تقاطع معامل بدون :اآللية وبنفس وكاآلتي: ثالثا، العام واالتجاه التقاطع وبمعامل ، ثانيا وحده التقاطع بمعامل ∆gdp t = 𝛿gdp t−1 + 𝜆∆gdp t−1 + ut ∆gdp t = α0 + 𝛿gdp t−1 + 𝜆∆gdp t−1 + ut ∆gdp t = α0 + α1 𝑡 + 𝛿gdp t−1 + 𝜆∆gdp t−1 + ut النموذج تزويد المباطئة هذه من الغرض الزمني التباطؤ :n الزمني االتجاه :α1 t الثابت الحد  α0 ان: حيث باالستقرارية تتصف بواقي على والحصول uncorrelated للخطأ الذاتي االرتباط من تحد زمني تباطؤ بفترات ( 𝜏c) كانت فاذا الوحدة جذر بوجود ( :δ h0 = 0) العدم فرضية ظل وفي i 0)) صفر الدرجة من ومتكاملة الزمنية السلسلة ان اي الوحدة، جذر لوجود المقتضية العدم فرضية رفض فيتم ، الجدولية القيمة من اكبر المقدرة ساكنة. غير السلسة ان اي الوحدة، جذر فرض قبول يتم الجدولية القيمة من اقل (𝜏cكانت) واذا ، ساكنة (gujarati, damodar, 2004, p. 817)؛ (baltagi, 2011, p. 381). الموجودة المتبقي االرتباط مشكلة لتصحيح واحدة زمنية لسلسلة الوحدة جذر لفرضية pp اختبار يستخدم حين في معلمية غير طريقة واستخدام الطويل المدى على التباين تقديرات عبر معياري غير باستخدام ،adf اختبار في ذاتها هي التقاربي التوزيع ان وحيث المتأخر، الفرق إضافة دون الخطأ حد في الذاتي االرتباط مع تتعامل american journal of business management, economics and banking volume 21 february, 2024 p a g e | 10 www.americanjournal.org الحرجة. t إلحصائية الحرجة القيم نفس استخدام النموذجين في ذاتها هي t توزيعات فان adf-ppللنموذجين والثالثة فقط ثابت بحد والثانية واتجاه ثابت حد بدون pp لنموذج الوحدة جذر عملية التالية المعادلة تصف حيث j) السكون. عدم ومنه الوحدة جذر وجود تقتضي التي نفسها العدم فرضية ظل في عام، واتجاه ثابت بحد fakieh, 2018, p. 116)، الموضحة المخرجات على حصلنا للمتغيرات االختبار اجراء وبعد ــية والولوج إلى إِل ــحة الفرضـــ ــال عن دعم نتائج التحليل التي تم تقديمها في اهدف ثبات صـــ ــة فضـــ ــل لدراســـ الفصـــ :الثاني، سوف يتم توصيف المتغيرات األساسية للدراسة وفقا للنظرية االقتصادية، وكاآلتي a. :الناتج المحلي االجماليالمتغيرات المستقلة gdp سعر الصرف الحقيقي ، وre b. :ميزان المدفوعات المتغير التابع b :التالية لة الرياضيةأعاله بالمعاد ويمكن صياغة االنموذج b = f (re , gdp) (1) b = b0 + b1 re + b2 gdp + ui (2) إذ ان: : reسعر الصرف الحقيقي : gdp b0: الناتج المحلي االجمالي 0bالحد الثابت. b1 وb2.معلمات المتغيرات المستقلة : ui : العشوائيحد الخطأ ( ومقارنتها بالمستوى probومن أجل قبول أو رفض سكون المتغير فقد تم استخدام القيمة االحتمالية ) %( فهذا يعني إن المتغيرات غير معنوية وتعاني من جذر وحدة، 5( أكبر من )prob%(. فإذا كانت قيمة )5) القبول بالفرضية يتم%( فهذا يعني أن المتغيرات ساكنة وال تعاني من جذر الوحدة، ومن 5) اما اذا كانت اقل (3وكما في الجدول) البديلة ورفض فرضية العدم american journal of business management, economics and banking volume 21 february, 2024 p a g e | 11 www.americanjournal.org العراق في النموذج لمتغيرات (pp) ديكو فللر الموسع و بيرون – فيليبس اختبار ( 3) جدول unit root test table (pp) at level at first difference b re gdp d(b) d(re) d(gdp ) with constant -2.9333 -1.7353 -0.2804 -5.7564 -5.2786 -3.6142 prob. 0.0563 0.4026 0.9152 0.0001 0.0002 0.0128 with constant & trend -2.9253 -2.1111 -2.1206 -5.6429 -5.2803 -3.5521 prob. 0.1725 0.5161 0.5111 0.0007 0.0013 0.0553 without constant & trend -2.8768 -1.443 0.9070 -5.9574 -5.3924 -3.2895 prob. 0.0059 0.1358 0.8974 0.0000 0.0000 0.0020 unit root test table (adf) at level at first difference b re gdp d(b) d(re) d(gdp ) with constant -2.9333 -1.7353 -0.2804 -5.5238 -5.2779 -3.6349 prob. 0.0563 0.4026 0.9152 0.0002 0.0002 0.0123 with constant & trend -2.9253 -2.1111 -2.6194 -5.4325 -5.2784 -3.5694 prob. 0.1725 0.5161 0.2754 0.0011 0.0013 0.0534 without constant & trend -2.8768 -1.443 1.1588 -5.6658 -5.3914 -3.2644 prob. 0.0059 0.1358 0.9319 0.0000 0.0000 0.0022 eviews.12 برنامج مخرجات على اعتمادا الباحث عمل من المصدر: ( level) المستوى عند ساكنةغير كانت ( r,b,gdpللمتغيرات ) الزمنية السالسل ان (2 ) الجدول من نلحظ عند الزائف االنحدار علىو الوحدة جذر على تحتوي انها اي عام واتجاه قاطع بوجود ام قاطع بوجود سواء للسالسل (first difference) االولى الفروق اخذ بعد االختبار اجراء تم لذلك , % 10 و %5 معنوية مستوى ام قاطع بوجود سواء i(1) الدرجة من متكاملة وستكون ( %10 و %5) مستوى عند استقرت انها وتبين االصلية عام واتجاه قاطع method: ardl الموزعة االبطاء للفتره الذاتي االنحدار طريقة وفق النموذج تقدير :2 والذي يعد من اهم االختبارات المستعملة في تحديد 2001( من قبل بيسران واخرين عام ardlقدم إنموذج ) الذي ardlالتكامل المشترك والعالقات الطويلة االجل الخاصة بالنماذج االقتصادية اذ تم استخدام نهج نموذج american journal of business management, economics and banking volume 21 february, 2024 p a g e | 12 www.americanjournal.org ( إلثبات وجود تكامل مشترك أو عالقة طويلة المدى بين المتغيرات pesaran and shinn) ,2001اقترحه ولقد تم تفضيله كثير ا نظر ا لقدرته على تحديد كل من معلمات المدى القصير والمدى الطويل في وقت واحد، ( ذي الخطوتين ، 1987وُيفضل ايضا على نماذج التكامل المشترك األخرى على سبيل المثال إنجل كرانجر ) ا كبير ا 1996( ، وغريغوري وهانسن )1991انسن )جوه ( ألنها تتطلب سكون السلسلة الزمنية بالفرق االول وعدد من العينات. وان الزمنيه السالسل سكون اختبارات تسبقه ان يشترط(ardl) الموزعة االبطاء لفتره الذاتي االنحدار نموذج ان بينهما خليط او (first difference) االولى الفروق عند اوlevel عنده ما مستقرا الزمنيه السالسل تكون :( 4) جدول في كما النتائج كانت و التقدير اجراء تم وبذلك ardl نموذج تقدير نتائج (4) جدول variable coefficient std. error t-statistic prob.* b(-1) 0.042522 0.268403 0.158427 0.8786 b(-2) -0.36767 0.289944 -1.26806 0.2453 b(-3) 0.529067 0.235422 2.247313 0.0594 re -6432.8 1423.879 -4.5178 0.0027 re(-1) 2629.626 1802.58 1.458812 0.188 re(-2) -2116.38 1664.219 -1.2717 0.2441 re(-3) 3009.878 1568.493 1.918962 0.0965 re(-4) -1643.07 1063.93 -1.54434 0.1664 gdp -0.02227 0.042592 -0.52288 0.6172 gdp (-1) 0.386839 0.065843 5.875176 0.0006 gdp (-2) -0.20178 0.116851 -1.72678 0.1278 gdp (-3) 0.163233 0.148552 1.098829 0.3082 gdp (-4) -0.48089 0.130044 -3.6979 0.0077 c 5151012 2377658 2.166422 0.067 r-squared 0.956482 mean dependent var 2729994 adjusted r-squared 0.875663 s.d. dependent var 8741394 s.e. of regression 3082343 akaike info criterion 32.955 sum squared resid 6.65e+13 schwarz criterion 33.65135 log likelihood -332.028 hannan-quinn criter. 33.10612 f-statistic 11.83485 durbin-watson stat 2.402805 prob(f-statistic) 0.001543 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 13 www.americanjournal.org ( 2و 1الجدولين رقم ) (eviews 12من إعداد الباحث باالعتماد على مخرجات برنامج ) المصدر: ان الى النتائج لنا تبين اذ ardl الموزعه االبطاء للفتره الذاتي لالنحدار االنموذج اختبار الجدول لنا يوضح يفسر المستقل المتغير أن أي (0.956482 ) (r-squared)التحديد معامل بلغ حيث بالقبول يتميز االنموذج موجودة غير اخرى عوامل إلى تعود المتغيرات من ( .50)وانه التابع المتغير في الحاصله تغيرات مال من %(87) (2.115326) إلى (durbin-watson stat) واتسون دربن قيمه وصول أن كما االنموذج في ةداخل غير او باطاالرت مشكله من خال قد النموذج أن يعني المشترك التكامل -3 )ميزان التابع المتغير بين المشترك التكامل بعالقه تعرف عالقه هناك بان الحدود اختبار (5 ) جدول لنا يوضح الجدول في الحدود اختبار نتائج لنا توضح التي ( المحلي االجمالي الناتج) ةالمستقل ات والمتغير المدفوعات( قيمه لنا تؤكده ما وهذا مشترك تكامل عالقه وجود لنا توضح والتي لبديلةا الفرضيه وقبول فالبّد من b( والمتغير التابع & gdp reمن أجل التحقق من وجود التكامل المشرك بين المتغيرين المستقلين ) ، ويتم اتخاذ القرار بوجود التكامل المشترك بين هذه المتغيرات. bounds testإجراء اختبار الحدود (f) األعلى للحد الجدولية من اكبر كانت وهي (9.371910) قيمتها بلغت اذ المحتسب (i1 bound) من المئويه مستوى عند البالغ (i0 bound) االدنى الحد قيمه من بكثير واكثر (3.85)بلغت والتي نفسها المعلم االقتصاد واقع مع وينطبق ةاالقتصادي الفرضيه مع يتطابق المشترك التكامل لوجود االقتصادي والتفسير(3.87) والطويل القصير االجلين في الخطا تصحيح نموذج تطبيق الى تقودنا النتيجه هذه وان العراقي ardl منهجية وفق المشترك للتكامل الحدود اختبار (5) جدول f-bounds test null hgdp pothesis: no levels relationship test statistic value signif. i(0) i(1) f-statistic 9.371910 10% 2.63 3.35 k 2 5% 3.1 3.87 2.5% 3.55 4.38 1% 4.13 5 eviews12 برنامج مخرجات على اعتمادا الباحث عمل من المصدر: american journal of business management, economics and banking volume 21 february, 2024 p a g e | 14 www.americanjournal.org ardl ةمنهجي وفق الخطا تصحيح نموذج : -4 المستقلة والمتغيرات المدفوعات( ميزان) التابع المتغير بين االجل قصيره عالقة هناك ( 6) جدول النتائج من يتضح النموذج من القصيره العالقه اظهار باالمكان حيث والحقيقي( االسمي الصرق وسعر المحلي االجمالي الناتج ) ardl سالب وهو coined(-1))الخطأ تصحيح لمعامل المرتفعة المعنوية يتضح فانه األجل طويله العالقة في ما لبنود مطابق انهها أي (0.0002له) االحتمالية حيث جدا وعالي الصحيح والواحد الصفر بين محصورة وقيمته وجود إلى تشير (-0.796076 (قيمته أن حيث والمعنوية واإلشارة القيمة ناحية من الخطأ تصحيح معامل شرط المستقل والمتغير التابع المتغير بين األجل طويله عالقة المتغيرات المستقلة على عن درجة تأثيريوضح هذا االختبار تقدير المعلمات في األجل القصير من أجل الكشف المتغير التابع، باإلضافة الى تحديد نوع العالقة القصيرة االجل. كما إن هذا االختبار يوضح معامل تصحيح ( الذي يقيس سرعة العودة لألنموذج إلى التوازن في األجل الطويل بين المتغيرات uecmالخطأ غير المقيد ) ( في bر التابع )ميزان المدفوعات ( والمتغي gdpوالناتج المحلي االجمالي r الصرف الحقيقيالمستقلة )سعر ، سالب ومعنوي حالة التباعد واالنحراف الحاصل في األجل القصير، ومن شروط معامل تصحيح الخطأ أن يكون فإذا تحقق هذا الشرط فإن ذلك يدل على أن األنموذج يقترب من حالة التوازن في األجل الطويل، وبالعكس يبتعد األنموذج عن حالة التوازن إذا اختل أحد ذلك الشرط أو كالهما ardl( نمودج تصحيح الخطأ وفق منهجبة 6)جدول ecm regression variable coefficient std. error t-statistic prob. d(b(-1)) -0.161401 0.184675 -0.873974 0.4111 d(b(-2)) -0.529067 0.161387 -3.278248 0.0135 d(re) -6432.802 1045.076 -6.155346 0.0005 d(re(-1)) 749.5743 989.5261 0.757508 0.4735 d(re(-2)) -1366.806 939.7093 -1.454499 0.1891 d(re(-3)) 1643.072 824.7807 1.992132 0.0866 d(gdp ) -0.022271 0.028789 -0.773589 0.4645 d(gdp (-1)) 0.519433 0.039184 13.25610 0.0000 d(gdp (-2)) 0.317657 0.100035 3.175448 0.0156 d(gdp (-3)) 0.480891 0.107596 4.469403 0.0029 cointeq(-1)* -0.796076 0.108783 -7.318044 0.0002 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 15 www.americanjournal.org eviews12 المصدر: من عمل الباحث اعتمادا على مخرجات برنامج اختبار المعلمات المقدرة الطويلة األجل -5 يوضح هذا االختبار تقدير المعلمات في األجل الطويل للكشف عن درجة تأثير المتغيرات المستقلة على المتغير (.7)التابع، باإلضافة إلى تحديد نوع العالقة، كما في الجدول variable coefficient std. error t-statistic prob. re -5718.987 1776.733 -3.218822 0.0147 gdp -0.194535 0.085114 -2.285590 0.0562 c 6470499. 3186885. 2.030352 0.0819 ( نتائج معلمات المتغيرات المستقلة في األجل الطويل، وجود العالقة بين المتغيرين 7يوضح الجدول ) وإنهما معنويين أو دالين من الناحية اإلحصائية. bوالمتغير التابع reو gdpالمستقلين histogram-normalitgdp testختبار مشكلة التوزيع الطبيعي ا -6 يوضح و ،زيع الطبيعي للبواقييستخدم هذا االختبار للتأكد من مدى خلو األنموذج المقدر من مشكلة التو (: نتائج اختبار مشكلة التوزيع الطبيعي 2 الشكل ) 0 1 2 3 4 5 6 7 -4000000 -2000000 0 2000000 4000000 series: residuals sample 5 25 observations 21 mean 1.16e-09 median 73922.55 maximum 3621530. minimum -3299493. std. dev. 1823539. skewness 0.032807 kurtosis 2.852709 jarque-bera 0.022750 probability 0.988690 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 16 www.americanjournal.org ُنالحظ بأن القيمة االحتمالية (، إذ jarque-bera( نتائج اختبار مشكلة التوزيع الطبيعي ل )2يوضح الشكل ) %(، وهذا يعني عدم وجود مشكلة التوزيع الطبيعي، ومن ثم هنا 5( وهي أكبر من ) prob=0.988690تبلغ ) يجب أن نقبل بفرضية العدم التي تنص على عدم وجود مشكلة التوزيع الطبيعي ورفض الفرضية البديلة التي تنص . ardlنموذج ألنتائج المن دقة يؤكد بوجود مشكلة التوزيع الطبيعي، ومن ثم فأن هذا االختبار serial correlation lm testاختبار مشكلة االرتباط الذاتي -7 المقدر من مشكلة االهذا االختبار للتأكد من مدى خلو األنموذج )يستخدم للبواقي. والجدول الذاتي ( 8رتباط يوضح ذلك. lmاالرتباط الذاتي الجدول(: نتائج اختبار مشكلة 8الجدول) f-statistic 2.983149 prob. f(2,5) 0.1404 -obs*r-squared 11.42521 prob. chi-square(2) 0.0033 ( f-statistic( نتائج اختبار مشكلة االرتباط الذاتي، إذ ُنالحظ بأن القيمة االحتمالية ل ) 8يوضح لنا الجدول ) %(، وهذا يعني عدم وجود مشكلة ارتباط ذاتي، ومن ثم هنا يجب 5( وهي أكبر من )prob=0.1404بلغت ) أن نقبل بفرضية العدم التي تنص على عدم وجود مشكلة ارتباط ذاتي بين المتبقيات العشوائية ورفض الفرضية . ardlالبديلة، ومن ثم فأن هذا االختبار يعزز من دقة نتائج أنموذج heteroskedasticitgdp testاختبار مشكلة اختالف التباين -8 جدول يوضح ذلك هذا االختبار ُيستعمل للتأكد من مدى خلو األنموذج المقدر من مشكلة اختالف التباين، (9). (arch)(: نتائج اختبار مشكلة اختالف التباين ل 9الجدول ) heteroskedasticitgdp test: arch f-statistic 2.380263 prob. f(2,16) 0.1245 obs*r-squared 4.356826 prob. chi-square(2) 0.1132 -f)، إذ ُنالحظ بأن القيمة االحتمالية ل arch)( نتائج اختبار مشكلة اختالف التباين ل )9يوضح الجدول ) statistic) تبلغ(prob=0.1245) ( وهذا يعني إن األنموذج يخلو من مشكلة اختالف 5وهي أكبر من ،)% american journal of business management, economics and banking volume 21 february, 2024 p a g e | 17 www.americanjournal.org تنص على عدم وجود مشكلة اختالف التباين بين )التباين، ومن ثم هنا يجب أن نقبل بفرضية العدم التي ardlومن ثم فأن هذا االختبار يعزز من دقة نتائج أنموذج (،المتبقيات العشوائية ورفض الفرضية البديلة (ardl)اختبار االستقرار الهيكلي أِلنموذج -9 عن طريق استعمال اختبار المجموع (ardl)ُيستعمل هذا االختبار للتأكد من االستقرارية الهيكلية ألنموذج ، ووفقا لذلك يتحقق االستقرار the cumulative sum of the recursive (cusum)التراكمي للبواقي ل يقع داخل (cusum)الهيكلي لمعلمات األنموذج إذا كان الخط األزرق )المتعرج( في الشكل البياني الختبار (: نتائج اختبار االستقرار الهيكلي ل 3الشكل )و ،%(5عند المستوى ) الحدود الحرجة المنقطة الحمراء (cusum) (cusum)(: نتائج اختبار االستقرار الهيكلي ل 3الشكل ) -8 -6 -4 -2 0 2 4 6 8 19 20 21 22 23 24 25 cusum 5% significance (eviews 12) باالعتماد على مخرجات برنامج الباحث (: من إعداد 3الشكل ) يقع ، إذ ُنالحظ بأن الخط األزرق (cusum)( نتائج اختبار االستقرار الهيكلي ل 3 )يوضح الشكل البياني داخل الحدود الحرجة المنقطة الحمراء، وهذا يعني إن المعلمات المقدرة لألنموذج مستقرة، ومن ثم فأن هذا االختبار . ardlيعزز من دقة نتائج أنموذج االستنتاجات :رابعا يأتي: وكما استنتاجات من الدراسة إليه توصلت ما أهم تلخيص يمكن بين ما المتبادلة العالقات خالل من العالمي باالقتصاد المحلي االقتصاد ربط على الصرف سعر يعمل -1 ينعكس التي المرآة الصرف سعر يمثل إذ معين. وقت في بأخرى عملة تبادل سعر يمثل أنه إذ المختلفة، العمالت أداة تعد لذلك واالستيرادات، الصادرات بين العالقة خالل من وذلك الخارجي العالم مع التجاري الدولة مركز عليها بتسهيل يقوم وبذلك الدولية واألسعار التكاليف معرفة يتم خالله من العالم اقتصادات وباقي مفتوح اقتصاد بين ربط وتسويتها. المختلفة الدولية المعامالت وعرض الصرف سعر بين طردية دالية عالقة هناك إذ دفوعات مال ميزان على الصرف رعس تأثير يظهر2 السلع أثمان النخفاض األجنبي الصرف عرض زيادة إلى يؤدي الصرف سعر ارتفاع أن إذ األجنبي، الصرف american journal of business management, economics and banking volume 21 february, 2024 p a g e | 18 www.americanjournal.org يؤدي الوطنية والخدمات السلع أثمان انخفاض أن إذ ثابتة، األخرى العوامل بقاء فرض على الوطنية والخدمات عرض زيادة أي الوطنية، العملة على الطلب زيادة إلى ذلك ويؤدي الخارج في منها المطلوبة الكميات زيادة إلى الداخل في األجنبية العملة عرض أن أي الصرف، سعر انخفاض حالة في صحيح. والعكس األجنبي الصرف للطلب الوجه هو الخارج في المحلية العملة عرض وكذلك الخارج في المحلية العملة على للطلب اآلخر الوجه الداخل. في المحلية العملة على .ان زيادة الدخل لها تاثير كبير على ميزان المدفوعات -3 التوصيات خامسا: بالتالي: أهمها نبين أن يمكن التي االستنتاجات من مجموعة استخالص تم البحث خالل من ــقية )األجنبي، المحلي( -1 ــتثمار بشـ ــادية بغية زيادة الناتج االهتمام باالسـ لالســـتغالل الكفء للموارد االقتصـ تطوير التجارة الخارجية لتحقيق فائض في ميزان المدفوعات. الحفاظ على قيمة واقعية للعملة تقترب من قيمتها التوازنية وتجنب لحدوث األزمات االقتصادية. -2 الحقيقي لكونه يعكس قيم العملة بصورة أوضح ضرورة المراقبة المستمرة والدائمة لتحركات سعر الصرف -3 من بقية األسعار. المصادر سادسا: الصدمات ظل في وأدارته فيه المؤثرة العوامل الصرف سعر (.2002) الغالبي. جليل الحسين عبد -1 منشور غير الكوفة: جامعة واالقتصاد، اإلدارة كلية دكتوراه، رسالة والنقدية، الحقيقية .تاريخ( )بال واألبحاث. لإلحصاء العامة المديرية العراقي المركزي البنك .1 .بغداد جامعة غداد:ب الدولي. االقتصاد (.1987) نونه.ك رشيد امين .2 صندوق العربية البلدان في الصرف أسعار وإدارة سياسات (.1997) .وآخرون الصادق فيقتو علي .3 .ظبي أبو العربي. النقد األجنبية المصادر المراجع سعر الصرف العوامل المؤثرة فيه وأدارته في ظل الصدمات الحقيقية والنقدية، رسالة (. 2002عبد الحسين جليل الغالبي . ) -1 كلية اإلدارة واالقتصاد، جامعة الكوفة: غير منشور. دكتوراه،. 2baltagi, b. h. (2011). econometrics (vol. fifth edition). springer heidelberg dordrecht london new york . american journal of business management, economics and banking volume 21 february, 2024 p a g e | 19 www.americanjournal.org 3g.haberler. (1969). money in the international economics: a study in balance of payment adjustment, interrelation of liquidity and exchange rates. harvard university press. 4gujarati, damodar. (2004). basic econometrics (vol. fourth edition). mcgraw−hill. 5imf. (n.d.). balance of payment’s manual. op.cit. 6j fakieh, r. a. (2018). inflation and exchange rate policies in saudi arabia: an inflation targeting perspective. manchester metropolitan university, uk. 7thomas a . pugel , h. lindert . (2000). "international economics ". usa. 8udegbunam, r. i. (2003). monetary and financial policy. in iyoha, m. a. & c. o. itsede (eds.), nigerian economy: structure growth and development. benin city: mindex publishing. البنك المرآزي العراقي المديرية العامة لالحصاء واالبحاث . )بال تاريخ(. -9 يغداد: جامعة بغداد. االقتصاد الدولي.(. 1987امين رشيد كنونه. ) -10 ابوظبي. سياسات وادارة أسعار الصرف في البلدان العربية،صندوق النقد العربي.(. 1997علي تزفيق الصادق واخرون. ) -11 american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 57 www.americanjournal.org prospects for diversification and supply of energy of uzbekistan based on world experience jurayev lazizjon egamberdiyevich master’s degree student of the graduate school of business and entrepreneurship in uzbekistan a b s t r a c t k e y w o r d s uzbekistan faces significant challenges in meeting its growing energy needs through a diversified and sustainable supply. this article examines the prospects for uzbekistan to enhance its energy security by drawing upon the successful experiences of other countries in diversifying energy sources and improving energy efficiency. through a comprehensive literature review and comparative analysis, the study finds that uzbekistan has strong potential to expand its use of renewable energy, particularly solar and wind power, as well as to boost energy efficiency across the industrial, buildings, and transportation sectors. uzbekistan, energy diversification, energy efficiency, renewable energy, energy security introduction uzbekistan, a resource-rich yet landlocked country in central asia, faces multifaceted energy challenges as it seeks to support socio-economic development and transition to a more sustainable future. the country relies heavily on finite fossil fuels, particularly natural gas, to meet its energy needs. in 2020, natural gas accounted for 86% of primary energy supply, followed by oil at 7% and coal at 4%, with only 3% coming from renewables and other sources [1]. this high dependence on hydrocarbons poses risks to energy security, fiscal stability, and the environment. soaring energy demand, driven by economic growth, industrialization, and rising living standards, is placing increasing pressure on uzbekistan's aging and inefficient energy infrastructure [2]. electricity shortages and gas supply disruptions are common, undermining productivity and wellbeing [3]. at the same time, inefficient energy use across the economy is leading to unnecessarily high consumption, imports, and greenhouse gas emissions. uzbekistan has among the highest energy intensities in the world, requiring over three times more energy to produce a unit of gdp compared to the european union average [4]. recognizing these challenges, the government of uzbekistan has made energy diversification and efficiency a strategic priority. uzbekistan's energy strategy 2030 sets ambitious targets to increase the share of renewables in electricity generation to 25% by 2030, up from just 10% in 2020 [5]. the strategy also aims to reduce energy intensity by 50% below 2015 levels through efficiency measures. american journal of business management, economics and banking volume 24 may 2024 p a g e | 58 www.americanjournal.org to support these goals, uzbekistan is pursuing energy sector reforms, private investment, and regional interconnections. however, progress has been constrained by technical, financial, and institutional barriers. methods and literature review to assess the prospects for energy diversification and efficiency in uzbekistan, a systematic literature review was conducted focusing on three main areas: (1) uzbekistan's energy landscape and policy context; (2) international experiences and best practices in energy diversification and efficiency; and (3) key barriers and opportunities for uzbekistan in light of its specific circumstances and international lessons. a comprehensive review was undertaken of official government strategies, reports, and data, supplemented by academic and gray literature on uzbekistan's energy sector. key sources included the ministry of energy, the uzbek renewable energy association, reports by international organizations such as the asian development bank and world bank, and journal articles on uzbekistan's energy challenges and opportunities. also, the literature review concentrated on identifying successful international examples of countries enhancing their energy security and sustainability, with a focus on developing and emerging economies that have faced similar barriers to uzbekistan. results uzbekistan has significant untapped potential for renewable energy development, particularly solar and wind power. with over 300 sunny days per year and average solar irradiation of 2,000 kwh/m2, uzbekistan has some of the highest solar energy potential in the world [6]. the country also has estimated wind energy potential of 520 gw, concentrated in the northwest regions bordering kazakhstan and turkmenistan [7]. despite this vast potential, renewable energy deployment in uzbekistan remains limited, accounting for only 3% of total primary energy supply in 2020 [1]. most of this comes from hydropower, with only 4 mw of installed solar pv capacity and 1 mw of wind power [8]. key barriers to scaling up renewables include insufficient legislative and regulatory frameworks, low electricity tariffs that discourage investment, limited financing and private sector participation, and weak institutional and technical capacity [9]. international experiences demonstrate that these barriers can be overcome through a combination of enabling policies, financial incentives, and technical assistance. for example, morocco has become a regional leader in renewable energy by adopting a supportive legal framework, competitive bidding processes, and fiscal incentives such as vat exemptions and subsidies [10]. india has deployed over 40 gw of solar pv through a mix of feed-in tariffs, renewable purchase obligations, and large-scale public tenders [11]. uzbekistan could draw upon these examples to design a comprehensive renewable energy strategy that attracts private investment while ensuring social and environmental safeguards. improving energy efficiency is critical for uzbekistan to reduce energy intensity, enhance energy security, and decouple economic growth from energy consumption. the industrial sector accounts for around 60% of total final energy consumption, followed by buildings at 25% and transport at 15% [12]. all three sectors have significant potential for efficiency gains. american journal of business management, economics and banking volume 24 may 2024 p a g e | 59 www.americanjournal.org successful examples of regional energy cooperation include the central american electrical interconnection system (siepac), which has enhanced electricity trade and renewable energy integration among six countries in central america, and the southern african power pool (sapp) [13], which has promoted cross-border electricity trade and investment in southern africa. uzbekistan could learn from these experiences to develop a regional energy strategy that leverages its central location and resources to promote mutually beneficial cooperation. analysis and discussion the prospects for energy diversification and efficiency in uzbekistan are significant but will require sustained efforts to overcome barriers and learn from international best practices. uzbekistan has made initial progress in setting ambitious targets and reforming its energy sector, but implementation has been constrained by technical, financial, and institutional challenges. the comparative analysis of international experiences suggests that key success factors include: ✓ establishing a comprehensive and coherent policy and regulatory framework that provides clear targets, responsibilities, and incentives for renewable energy and energy efficiency ✓ attracting private sector investment and expertise through competitive bidding processes, fiscal incentives, and risk mitigation measures ✓ building technical and institutional capacity through targeted training, knowledge exchange, and international partnerships ✓ ensuring social and environmental safeguards through stakeholder engagement, impact assessments, and benefit-sharing mechanisms ✓ promoting regional cooperation and trade through harmonized market rules, interconnected infrastructure, and trust-building measures uzbekistan can draw upon these lessons to design a sustainable energy transition strategy that is tailored to its specific context and needs. a key priority should be to establish a supportive enabling environment that provides long-term policy stability, reduces investment risks, and incentivizes innovation and private sector participation. this could involve adopting a renewable energy law, setting transparent and competitive procurement processes, and providing financial incentives such as feed-in tariffs, tax breaks, and subsidies. uzbekistan should also prioritize energy efficiency as a cost-effective and high-impact way to reduce energy intensity and enhance energy security. this could involve adopting a national energy efficiency action plan that sets clear targets and responsibilities across all demand sectors, supported by a mix of regulatory measures, market-based incentives, and information and capacity building programs. particular attention should be given to the industrial sector, which accounts for the bulk of energy consumption and offers significant potential for efficiency gains. finally, uzbekistan should leverage its central location and resource endowments to promote regional energy cooperation and trade. this could involve developing a regional energy strategy that harmonizes market rules and standards, expands cross-border transmission infrastructure, and builds trust and cooperation with neighbors. uzbekistan could position itself as a regional renewable energy hub, exporting surplus solar and wind power to neighboring countries while balancing its own supply and demand. american journal of business management, economics and banking volume 24 may 2024 p a g e | 60 www.americanjournal.org conclusion uzbekistan faces significant challenges in meeting its growing energy needs through a diversified and sustainable supply. however, the country has significant untapped potential for renewable energy development and energy efficiency improvements, which could help to enhance energy security, reduce dependence on fossil fuels, and support socio-economic development. to realize this potential, uzbekistan should learn from successful international experiences and best practices in designing and implementing a comprehensive energy transition strategy. key recommendations include: establish a supportive policy and regulatory framework for renewable energy and energy efficiency, with clear targets, responsibilities, and incentives for private sector investment and innovation. prioritize energy efficiency as a cost-effective and high-impact way to reduce energy intensity and enhance energy security, with a focus on the industrial sector and cross-cutting measures such as building codes, appliance standards, and awareness-raising. by pursuing these recommendations and learning from international experiences, uzbekistan can accelerate its energy transition and build a more secure, sustainable, and prosperous future for its people and the region. references 1. international energy agency. (2021). uzbekistan energy profile. 2. world bank. (2020). uzbekistan energy sector reform and development project. 3. asian development bank. (2019). uzbekistan: power sector reform and development. 4. international energy agency. (2020). uzbekistan: key energy statistics. 5. ministry of energy of the republic of uzbekistan. (2020). energy strategy of the republic of uzbekistan until 2030. 6. international renewable energy agency. (2021). renewables readiness assessment: uzbekistan. 7. united nations development programme. (2019). opportunities for uzbekistan in transition to a green economy. 8. uzbek renewable energy association. (2021). renewable energy in uzbekistan: challenges and opportunities. 9. energy charter secretariat. (2020). uzbekistan: energy investment risk assessment. 10. international renewable energy agency. (2019). renewable energy outlook: morocco. 11. international energy agency. (2021). india energy outlook 2021. 12. united nations economic commission for europe. (2020). environmental performance reviews: uzbekistan. 13. united nations industrial development organization. (2019). industrial energy efficiency in uzbekistan: challenges and opportunities. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 50 www.americanjournal.org the impact of covert advertising on consumer behavior ruzimuratov akmal bakhodirovich student of school 21, bukhara city, uzbekistan a b s t r a c t k e y w o r d s the analysis of "the impact of covert advertising on consumer behavior" is very important nowadays, as consumers are constantly exposed to traditional advertisements and have already become immune to them. covert advertising, in turn, integrates the same content but in a less intrusive way, allowing the brands that use it to gain more trust from consumers. the relevance of covert advertising is confirmed by several factors. introduction firstly, skepticism towards traditional advertising has only been increasing every year, along with consumers' awareness of brands' marketing tactics, which prompts distrust not only towards the brand itself but also doubts about the quality of the product. covert advertising seems less intrusive compared to traditional, thus generating more sympathy from consumers. moreover, those brands that openly declare their advertising strategies enhance their reputation in the eyes of consumers, as they build trusting and lasting relationships with them. in addition, the rise of social media has changed the ways covert advertising is introduced. influencers promote products by telling their own stories, making ads more organic and relatable. their use of products in everyday life also raises the product’s status in the eyes of consumers and increases their interest in it, significantly boosting the likelihood of purchasing the advertised product. but, besides influencers, covert advertising can also be introduced into content such as movies or video games, which increases brand loyalty and creates emotional connections with consumers. when products are associated with a desired lifestyle or characters, it inspires viewers to emulate these traits. that is why studying the impact of covert advertising on consumer behavior is a topic of great importance today. it shows the effectiveness of integrating advertising in a non-intrusive form and the importance of trustful relationships between the consumer and the brand. and since consumer perspectives are beginning to change significantly, marketing continues to evolve. therefore, understanding the dynamics of covert advertising is now key for brands to succeed in a competitive environment. american journal of business management, economics and banking volume 29 october 2024 p a g e | 51 www.americanjournal.org purpose of scientific research the goal of this research is to analyze how covert advertising influences consumer behavior by subtly creating an emotional connection with the brand, thus shaping their purchase decisions and building trusting relationships between the brand and its consumers. methods in this scientific research, analysis was conducted using: scientific materials, literary sources, experiences of international companies, and so on. authors feedback the analysis of the article by sabir et al. shows that the use of covert advertising has a positive effect on consumer behavior, as their brand awareness significantly increases the chances of purchase without using intrusive advertising. i fully agree with this conclusion, as covert advertising is typically integrated into media content and is not perceived by consumers as aggressive advertising. nevertheless, it constantly appears in the media space where consumers spend most of their day, which leads to the easy popularization of the product and high effectiveness, as such advertising tends to stay in people's minds for a long time. an example of this is “coca-cola's "share a coke" campaign, which started in 2011. the idea of this campaign was that people simply took photos with personalized coke bottles and shared them on various social media platforms, which led to increased consumer engagement without overt advertising pressure. this, in turn, resulted in a 2% increase in sales in north america and a 7% increase in australia”1. in their study, fabian göbel, anton meyer, balasubramani ramaseshan, and silke bartsch examine consumer responses to covert advertising (ca) in social media, particularly on youtube. the authors concluded “that covert advertising may not always be effective because consumers are becoming more aware of various marketing tactics and can recognize such strategies. if consumers feel that something is being hidden from them or that a product is being pushed too aggressively during attempts to implement covert advertising, this can lead to negative brand perception and, over time, damage its reputation and erode consumer trust”2. i fully agree with this. when consumers catch on to covert advertising, they often feel misled, which can result in a loss of trust. in today’s digital world, where so much information is readily available, people are becoming savvier and can quickly spot marketing efforts. this is why it’s so important for brands to be transparent in their advertising to build trust and strengthen their relationship with consumers. a well-known example of this is the fyre festival scandal in 2017. many influencers promoted the event on social media without clearly disclosing that it was paid advertising. when the festival turned out to be a failure, consumers felt betrayed, which led to widespread dissatisfaction. both the organizers and the influencers involved faced significant backlash. the event became a pr disaster, resulting in 1 coca-cola's 'share a coke' campaign boosts sales, sparks engagement, advertising age, july 2014. https://adage.com/creativity/work/share-coke-love/54491 2 fyre festival: a social media influencer disaster," business insider, april 2017// https://www.businessinsider.com/fyre-festival-expectations-vs-reality-2017-4 https://adage.com/creativity/work/share-coke-love/54491 https://www.businessinsider.com/fyre-festival-expectations-vs-reality-2017-4 american journal of business management, economics and banking volume 29 october 2024 p a g e | 52 www.americanjournal.org lawsuits and widespread media coverage. this shows that aggressive or poorly handled advertising can quickly destroy consumer trust and harm the brand. in their article, authors skiba, petty, and carlson explore covert marketing and its impact on consumers. one of the key aspects of their work is the concept of "marketer control of consumer engagement," where marketers manage how and when consumers interact with products without realizing it. based on this, they note that covert marketing can be more than just deception; it can also be a source of unfair harm to consumers. the authors also emphasize that if such practices become widespread, they may violate laws related to unfair practices, as this type of marketing is psychologically imposed on consumers without their knowledge. i agree with the authors' assertion that covert marketing can harm people because some of its strategies may be perceived as deceptive. however, covert advertising can cause harm only if it is done in an aggressive and intrusive manner, where the once subtle advertisement becomes too ubiquitous and loses its main feature of being discreet, ultimately annoying rather than engaging consumers. but wellexecuted covert advertising not only avoids consumer dissatisfaction, but it can actually be appreciated by consumers. a good product, subtly advertised, will only bring joy to the consumer after the purchase, leaving them satisfied with their choice. this can be demonstrated by one example of successful covert marketing, where consumers were unaware of it but were happy with their decision. “this is the campaign by the well-known brand red bull involving extreme sports. in 2012, felix baumgartner performed a skydive from the stratosphere (the red bull stratos project), and the brand was integrated into the event in such a way that it was perceived more as support for a bold achievement rather than as direct advertising. although the red bull logos were everywhere, viewers were focused on the uniqueness of the event and were impressed by its scale, associating the brand with positive emotions”3. authors wei, fischer, and main investigate the impact of consumer awareness of covert advertising tactics on their perception of brands using such methods. the studies show that if consumers are alerted to these marketing tactics, their perception of the brands may worsen. however, it also depends on how appropriate the tactics seem and whether the consumer is familiar with the brand. in some cases, awareness of such tactics can even improve the perception of the brand by consumers. i agree that consumer awareness of covert marketing can negatively affect their perception of brands. if the tactic is seen as unethical, it will lead to dissatisfaction. but if the tactic or brand is trustworthy, the effect may be the opposite. after all, if a brand does not try to invent a completely unnoticed method of advertising, and consumers suspect even a hint of deception, this can lead to significant consequences. keeping consumers informed builds trust and even greater interest in such marketing promotions. an example of this is the case with “sony in 2006, when the company used covert marketing to promote the psp, hiring actors to pretend to be regular people talking about the device on their social media. when the truth came out, the perception of the brand deteriorated sharply, leading to negative reactions and a decline in sales”4. 3 skydiver felix baumgartner breaks sound barrier// https://www.bbc.com/news/science-environment-19943590 4 more memory and quicker loading in a thinner and lighter playstation portable// https://www.nytimes.com/2007/09/20/technology/circuits/20sony.html https://www.bbc.com/news/science-environment-19943590 https://www.nytimes.com/2007/09/20/technology/circuits/20sony.html american journal of business management, economics and banking volume 29 october 2024 p a g e | 53 www.americanjournal.org in their paper, wojdynski and evans examine hidden advertising, which uses familiar formats such as native advertising and product placement. they argue that consumers' psychological reactions to such advertising depend on whether they recognize it as an advertising message or whether they do not see any advertising subtext. i agree with the authors' statement that knowing whether something is an advertisement or not affects consumers' perceptions and reactions. after all, if people do not recognize an advertisement, they may be more likely to be influenced by it, since it makes them more trusting, as opposed to traditional advertising, which most consumers are already skeptical of. but it is worth remembering that when advertising becomes too obvious, consumers may be wary of it. for example, there is “samsung's product placement campaign at the 2014 oscars. the company integrated its galaxy note 3 smartphone into the event, organizing a viral "selfie" of ellen degeneres with several celebrities, which was reposted more than 3 million times on twitter. and although this moment seemed spontaneous, it was carefully planned by samsung. but people who did not know this took such a performance positively, and thus, not only did the advertising turn out to be unobtrusive, but also very interesting for the consumers themselves”5. in their 2014 study, tomažić, boras, jurisić and lešjak look at product placements that look like regular journalistic content using slovenian newspapers as an example. using content analysis, they were able to show that product placements often appear in daily newspapers and are designed to attract readers' attention. they also note that there is a lack of clear definitions of product placements in the world, as they are not widely used. i agree with the authors' conclusions that product placements that are well-presented in an interesting format engage audiences that do not recognize them as advertising. this approach increases trust and makes advertising less intrusive than traditional advertising methods. a good example is the “new york times campaign with native advertising for netflix in 2014. the article "women inmates: why the male model doesn't work" was perceived as a journalistic piece, but in reality it was an advertisement for orange is the new black. consumers who did not recognize the advertisement valued it for its content, which led to positive reviews and high engagement. when it was revealed that it was an advertisement, the audience reaction was generally neutral, due to the quality of the content. and this shows both sides of how things can play out, when consumers are aware and when they are not. this advertisement was made well and deservedly did not receive negative reviews after it was revealed that it was an advertisement. however, for new companies this can be a big risk, because there is no guarantee how consumers will react”6. conclusion this study examines the impact of covert advertising on consumer behavior, given its importance in today’s marketing world. in an era where consumers are increasingly skeptical of traditional advertising, often developing mechanisms to avoid it, integrating advertising content into entertainment allows brands to engage with audiences in a more subtle and engaging way, without pushing their product on consumers but still building a positive relationship with them. this is why covert advertising is becoming an important strategy. the article also discusses how growing 5 source: the guardian – https://www.theguardian.com 6 campaign information is available on the adage website: https://adage.com. american journal of business management, economics and banking volume 29 october 2024 p a g e | 54 www.americanjournal.org skepticism towards overt advertising has changed consumer trust in brands that use integrated marketing approaches. techniques such as covert advertising in popular media are studied for their effectiveness, ultimately improving brand perception and consumer liking. for example, covert advertising in popular shows can create associations that resonate with viewers, thereby building an emotional connection with them, as opposed to traditional advertising that directly calls for a product purchase. influencers can promote products by simply mentioning the brand, making the advertisement natural and appealing to consumers. therefore, the growing role of social media also plays an important role, as influencers play a key role in implementing hidden advertising. but it is also worth remembering that there are potential risks to be discussed as consumers become more aware of marketing strategies; the need for transparency becomes more important in this type of covert advertising approach. when consumers become aware of covert advertising techniques, their reaction may be negative, and the brand’s reputation may suffer. brands that do not try to implement their advertising integrations more subtly but are open about their actions have a better chance of gaining the sympathy and trust of consumers than those that try to make the advertising as inconspicuous as possible with their excessive efforts, thereby causing consumers to doubt the brand. therefore, the main thing to remember is that it is very important for brands to navigate these covert advertising integrations carefully. the psychological aspects associated with covert advertising are also studied. the studies reviewed show that while brand awareness is important, brand recall and recognition play a more significant role in purchasing decisions. the subtlety of covert marketing contributes to a long-term connection with consumers, gradually shaping their behavior over time. an effective strategy suggested by the study is to subtly integrate products into consumers’ daily lives. this approach allows consumers to connect with brands on a more personal level, significantly reducing skepticism and increasing their trust. it is therefore worth noting that as the advertising landscape evolves, understanding these dynamics will be critical for brands seeking to succeed in a competitive marketplace. offers in my work, i propose to consider the use of influencers to informally integrate products into their daily lives. this approach is based on the fact that influencers actively interact with the audience, present the product as part of their daily life without focusing on it too much, which creates the impression of natural behavior, and not advertising. when influencers use a product without drawing special attention to it, consumers perceive it as a personal recommendation, and not as intrusive advertising. therefore, i argue that such informal demonstrations build consumer trust, reduce skepticism and increase engagement. “according to a study by business insider, 49% of consumers trust influencer recommendations more than traditional advertising. this confirms that integrating products into the lives of influencers can be extremely effective. and according to a study by mediakix, influencer publications generate 4-8 times more user interest compared to traditional advertising”7. this is especially important in today’s times when consumers tend to ignore overt advertising, but continue to respond to recommendations from those they trust. the financial benefits also confirm the effectiveness of this strategy. a prime example of this is “gymshark, a company using an influencer marketing strategy, which reached a turnover of $300 7 https://supplygem.com/publications/influencer-marketing-statistics/ american journal of business management, economics and banking volume 29 october 2024 p a g e | 55 www.americanjournal.org million in 2020, with more than 70% of their sales coming from collaborations with fitness influencers”8. my suggestion, however, goes further: key brand ambassadors should not overtly promote the product, which may cause unnecessary skepticism among consumers. instead, they should use the product informally in their daily lives, even in short, unobtrusive moments. consumers who notice this will perceive the product as a natural part of the influencer’s real life, for whom they have respect and admiration. they will be inspired by how the product helps the influencer achieve success or maintain their lifestyle. this strategy will help minimize “ad blindness” and lower the barriers to consumer acceptance of advertising, as audiences will not feel like they are being aggressively advertised to the overload of their lives, which they are already tired of. ultimately, consumers will be inclined to choose the product based on the emotional attachment and trust that will be formed through association with their role model. therefore, i believe that using celebrities to informally promote products through product placement not only increases consumer trust and engagement, but also serves as a cost-effective strategy for brands. i also propose a strategy that basically means that the product becomes a visible element of the context in any media, be it a tv show, a movie, a youtube video or tiktok, regardless of whether it is portrayed positively or negatively. the key is that it does not look like an overt advertisement, but is still noticeable enough to be remembered. today's consumers interact with content from different sources, and such a strategy increases the likelihood that they will notice the product in any format. therefore, using all available media formats allows you to reach a wide and diverse audience. for example, according to nielsen, “american adults spend on average more than 10 hours a day in the media space. this confirms that such a strategy provides maximum impact. a product that is constantly appearing on various media platforms, even if it is not always portrayed positively, gradually becomes ingrained in the minds of the audience, sometimes even presenting the product with a less than favorable attitude towards it can increase consumer trust due to the fact that it will not look like a regular advertisement with only positive qualities of the product. as a result, consumers are more likely to choose a familiar product. this is due to the "mere exposure effect", when repeated exposure to a product increases its recognition and attractiveness. for example, a study by ipsos showed that 67% of consumers prefer products with which they are already familiar. the product can also be integrated into a variety of narratives and contexts, whether it’s a scene in a movie where the main character uses the product or a brief mention in a youtube review”9. this flexible format gives brands the opportunity to avoid rigid advertising scripts that have long been boring to audiences. when a product becomes part of engaging or emotionally charged content (such as a key moment in a movie or a popular tiktok clip), it creates a strong association with these emotions in the audience and becomes more memorable. this not only increases brand awareness, but also promotes a deep emotional connection with the product. according to adweek, “emotional advertising is 70% more effective than traditional advertising campaigns because it increases connection with consumers. including a product in different media formats also allows you to engage different age and social groups. according to pew research, 73% of american adults use youtube, while tiktok is increasingly attracting younger users. for 8 https://www.meltwater.com/en/blog/influencer-marketing-statistics 9 https://www.nielsen.com/insights/2019/adult-americans-are-spending-more-time-than-ever-with-video/ american journal of business management, economics and banking volume 29 october 2024 p a g e | 56 www.americanjournal.org example, younger audiences are more likely to engage with tiktok and youtube, while older age groups may prefer tv and film”. product placement and hidden advertising campaigns can increase brand sales. a successful example is the product integration in the tv series stranger things, where coca-cola became part of the storyline, leading to a 4% increase in sales during the release of the new season. this proves that a product organically integrated into popular content can influence consumer behavior.therefore, i believe that using the product in media formats, making it part of the context but not turning it into overt advertising, is an effective strategy. it allows brands to remain visible, evoking positive emotions and trust in consumers, which ultimately leads to increased sales and loyalty. continuing with my thoughts on hidden advertising, which is oxymoronic but incredibly successful, i suggest one of the best ways to make hidden advertising really noticeable. because customers are more likely to engage with a product without being aware of its underlying commercial goal when it becomes ingrained in daily life. making a product into a meme and using it as a major theme in the media is an excellent illustration of this tactic. instead of using traditional advertising, which frequently gives consumers the impression that they are being "sold to," firms can leverage the community's collective humor by transforming a product into a meme, which allows people to view the product in a humorous perspective. memes are among the kind of content that spread the fastest content in contemporary media. by concealing the fact that customers are engaging with an advertisement, this subtle and viral strategy might increase consumption. the audience itself starts promoting a product once it turns into a meme. without requiring any brand expenditure, this organic spread expands the product's reach and visibility. “the global web index reports that 55% of internet users between the ages of 16 and 24 frequently share memes, providing marketers with a low-impact way to advertise”10. as a result, usergenerated content is ideal for memes. furthermore, buzzsumo research indicates that viral material— including memes—may increase site traffic by 400%, indicating the high level of engagement that such content can elicit.the clandestine advertising that is carried out is the most successful openly since it isn't thought of as advertising. people are more inclined to interact with a product that is trendy because they believe they are following a trend rather than just seeing an advertisement. customers are less likely to respond skeptically or disregard the message when they are unaware that they are being sold something. old spice's 2010 "the man your man might smell like" ad, which went viral on various platforms, is a great illustration of this idea in action. despite being a type of advertising, the campaign's humor and the memes that followed covered up its commercial purpose. sales of old spice body wash thus rose by 125% within a month of the meme-turned-meme's debut, demonstrating openly since it isn't thought of as advertising. people are more inclined to interact with a product that is trendy because they believe they are following a trend rather than just seeing an advertisement. customers are less likely to respond skeptically or disregard the message when they are unaware that they are being sold something. one excellent illustration of this is that when advertising is done in a lighthearted and visible manner, customers react favorably without being aware of the marketing campaign. similar to this, a video made by a user in 2021 while skateboarding and drinking ocean spray increased sales by 15% in a single week, demonstrating the power of highly visible but seemingly hilarious advertising to boost consumer engagement and brand loyalty. ocean spray noticed a significant increase in sales as a result of their cranberry juice being included in a meme in this viral tiktok film.finally, this 10 https://datareportal.com/reports/digital-2024-april-global-statshot american journal of business management, economics and banking volume 29 october 2024 p a g e | 57 www.americanjournal.org strategy is one of the most successful product placement tactics because it works particularly well in today's media, where consumers are more likely to believe material produced and shared by their friends, relatives, or people who are actively participating in a trend. brands can capitalize on organic distribution, virality, and customer engagement by transforming a product into a meme or cultural moment. this approach avoids the distrust and skepticism that come with traditional advertising and instead fosters a more trustworthy relationship with the brand. i also want to present my fourth idea, which is using interactive storytelling to incorporate things into video games. a product becomes a part of the narrative when it blends in perfectly with the gameplay, which increases audience engagement and retention. this tactic is an effective one that enables companies to provide players with a distinctive experience in addition to promoting their goods. because video games are interactive environments where players actively participate, they offer a special chance for marketers to incorporate their goods. research shows that 65% of players say that integrating real brands into games makes the gaming experience more interesting and realistic. for example, characters can use branded drinks to restore energy or wear branded clothing. this form of integration creates associations between the product and the positive emotions that players experience during the game, because in the same example of a branded drink in the game giving health to the player, the player is happy every time he sees it in the game, which will lead to the fact that in real life he will subconsciously be happy when he sees the same product.the game fortnite, which frequently partners with different businesses to produce original content, is a fantastic illustration of this strategy. the game has included skins (character models) with designs and logos from well-known companies like nike and marvel.over 350 million people have signed up for the game in only one quarter, according to fortnite developer epic games, demonstrating a high degree of audience engagement.moreover, research shows that 80% of players express interest in additional content related to brands featured in the game. after all, this allows players to associate themselves with brands. integrating products through interactive introduction into game content can be applied in various game genres from sports games to real-life simulators. brands can collaborate with game developers to create special events, promotions or challenges related to their products. for example, in racing, players could get the opportunity to use a specific car that has an analogue in the automotive industry. according to a study by newzoo, 72% of players say that branded cars in games increase their interest in real models. since playing a game where a player has a certain car, it becomes more meaningful to him, because he spends most of the time with it and it becomes very useful to him in the gameplay. this approach not only creates positive associations for consumers, but also actively engages them in the process. research shows that 73% of gamers are more likely to recommend a product integrated into a game to their friends. brands using this method have the potential to not only increase their visibility, but also establish a deeper connection with their target audience, making this approach especially effective in today’s media landscape. thus, integrating products into video games through interactive storytelling represents a powerful and modern method of covert advertisement. generalization this study examines the complex effects of covert advertising on customer behavior and discusses its importance in the current marketing environment. covert advertising is a vital tactic in a time when customers are constantly exposed to regular ads and frequently create defenses against them. brands american journal of business management, economics and banking volume 29 october 2024 p a g e | 58 www.americanjournal.org may establish a more nuanced and captivating connection with audiences by incorporating promotional information into entertainment. the paper discusses how growing skepticism toward overt advertising has shifted consumer trust towards brands that adopt integrated marketing approaches. techniques such as product placements in popular media are examined for their ability to feel less intrusive and more authentic, ultimately enhancing brand perception and consumer affinity. for example ,viewers can automatically form associations with them in popular programs. another issue is the emergence of social media for covert advertising. because ifluencers can market items by just sharing relatable stories, which gives commercials a real and engaging feel. nonetheless, the report highlights the risks associated with this approach. when consumers witness dishonest advertising tactics, especially when sponsorships are not disclosed, they may react unfavorably. this phenomenon is illustrated through case studies, such as the backlash that businesses like morphe and bang faced after consumers learned about unreported marketing. the ethical implications of covert advertising are severely examined in the report. as customers get more aware of marketing, there is an increasing need for openness.tactics. companies that use truthful advertising tend to have more enduring relationships with their target market. the research emphasizes how companies must be careful when negotiating these ethically difficult situations since unethical behavior can damage their reputation and foster mistrust. the psychological impacts of covert advertising are also explored. according to the reviewed study, despite the significance of brand identification, brand awareness and memory have a stronger influence on purchasing decisions.this research indicates that the subtlety of covert marketing builds long-lasting familiarity and gradually changes consumer behavior over time. one crucial strategy, per the poll, is for influencers to discreetly include products into their regular routines. in addition to coming out as genuine, this tactic builds a human bond between clients and companies, which reduces suspicion and boosts engagement. the study concludes that although covert advertising can successfully boost brand awareness, being transparent and acting morally are essential to preserving customer trust, particularly in the digital age when cynicism is growing. the study's conclusions indicate that as the advertising landscape evolves, businesses seeking to thrive in a competitive market will need to understand these traits. references 1. ruzimuratov akmal bakhodirovich student of school 21,bukhara city , uzbekistan analysis of the impact of cultural differences on international marketing nowadays, international journal of artificial intelligence for digital marketing issn: 3032-1298 table of content – volume 1 | no 3 (may 2024) 2. raja irfan sabir, muhammad arslan sarwar, muhammad iqbal rana, salman zulfiqar, naeem akhtar, hussnain kamil, impact of covert marketing on consumer buying behavior, international review of management and business research, 2014 3. fabian göbel, anton meyer, balasubramani ramaseshan, silke bartsch, consumer responses to covert advertising in social media, marketing intelligence & planning, 2017 4. jenifer skiba, ross d petty, les carlson, beyond deception: potential unfair consumer injury from various types of covert marketing, journal of consumer affairs, 2019 american journal of business management, economics and banking volume 29 october 2024 p a g e | 59 www.americanjournal.org 5. mei-ling wei, eileen fischer, kelley j main, an examination of the effects of activating persuasion knowledge on consumer response to brands engaging in covert marketing, journal of public policy & marketing, 2008 6. bartosz w wojdynski, nathaniel j evans, processes of persuasion in native advertising and other masked formats, international journal of advertising, 2020 7. tina tomažic, damir boras, jelena jurišic, dušan lesjak, covert advertising as inadmissible presentation of information, industrial management & data systems, 2014 8. favour eniola olusola, influence of covert advertising in nollywood films on consumer buying behaviour: a study of unilag undergraduates, department of mass communication, university of lagos, 2021 9. coca-cola's 'share a coke' campaign boosts sales, sparks engagement, advertising age, july 2014. https:// https://adage.com/creativity/work/share-coke-love/54491 10. fyre festival: a social media influencer disaster," business insider, april 2017// https://www.businessinsider.com/fyre-festival-expectations-vs-reality-2017-4 11. skydiver felix baumgartner breaks sound barrier// https://www.bbc.com/news/scienceenvironment-19943590 12. more memory and quicker loading in a thinner and lighter playstation portable// https://www.nytimes.com/2007/09/20/technology/circuits/20sony.html 13. https://supplygem.com/publications/influencer-marketing-statistics/ 14. https://www.meltwater.com/en/blog/influencer-marketing-statistics https://www.nielsen.com/insights/2019/adult-americans-are-spending-more-time-than-ever-withvideo/ 15. https://datareportal.com/reports/digital-2024-april-global-statshot. https://adage.com/creativity/work/share-coke-love/54491 https://www.businessinsider.com/fyre-festival-expectations-vs-reality-2017-4 https://www.bbc.com/news/science-environment-19943590 https://www.bbc.com/news/science-environment-19943590 https://www.nytimes.com/2007/09/20/technology/circuits/20sony.html american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 248 www.americanjournal.org ways to optimize the tax burden on organizations in the republic of uzbekistan yuldasheva umida asanaliyevna phd., associate professor of the department "international finance and credit" of the tashkent financial institute a b s t r a c t k e y w o r d s in the conditions of market relations, the tax system is the basis of the financial and credit mechanism of state regulation of the economy. taxes, like the entire tax system, are a powerful tool for managing the economy in market conditions. the effective functioning of the entire national economy depends on how well the taxation system is built. the state widely uses tax policy as a certain regulator of the impact on negative market phenomena in order to stabilize the economy and stimulate economic growth. tax potential, tax administration, direct taxes, indirect taxes, tax efficiency, optimization of the tax burden. introduction taxes are an important link in financial relations in society and as a form of financial relations arise simultaneously with the emergence of the state. being an integral part of the company's finances, tax payments have a significant impact on the financial condition of the company. the tax impact is so great that it can play a decisive role in shaping the strategy and tactics of economic development. as the president of uzbekistan mirziyoyev sh.m. noted, "the main goal of tax reform is to ensure economic stability in this and subsequent years. to do this, it is necessary to support producers and progressively increase budget revenues. our only way is to increase the number of manufacturers and entrepreneurs, to realize the business potential of people." an important guide to action in implementing these priorities is the adoption of the concept of improving the tax policy of the republic of uzbekistan, which provides for fundamental reform of the tax system, including reducing taxes and mandatory payments, as well as the abolition of ineffective tax incentives. the main directions of the concept: reduction of the tax burden on the payroll; improvement of taxation of payers of generally established and simplified taxes; implementation of measures aimed at reducing the negative impact of improving tax policy on payers of the simplified tax regime; improvement of the procedure for calculating and paying value added tax and excise tax. uzbekistan is implementing measures aimed at carrying out deep structural transformations and improving the economic mechanism. among them, tax instruments play an important role, with the help of which the state has the opportunity to stimulate the development of industrial production. foreign experience has been widely used in the development of tax mechanisms in the field of income tax, vat, excise tax, property tax, as well as in improving tax administration tools in uzbekistan. to american journal of business management, economics and banking volume 20 january, 2024 p a g e | 249 www.americanjournal.org this end, significant changes have been made to the tax system and a new tax code has been introduced that meets modern requirements. literature review at the same time, both specialists who carry out their activities in the system of tax authorities and scientists do not have a common opinion on the definition of the term "tax administration". in particular, a.v.ugryumova notes that this term is "applied haphazardly, there is no unified understanding of its content"[2]. thus, a.m.mamurov defines it as "...enhanced tax administration, regulated by regulatory acts in the field of taxation, which ensures the taxation of certain objects in a market economy ..."[3]. in turn, m.s.mishenina and l.v.maksimova understand tax administration as a set of procedures that ensure public administration in the field of taxation. tax administration has a targeted focus on the implementation of tax legislation[4]. it is worth noting that o.a. tolkachev defines tax administration as a tool for implementing tax policy and includes in the tax administration system, in particular, tools of tax (fiscal) control, including taxpayer control capabilities, "taxpayer's personal account", vat control systems, online cash registers and other systems created using ittechnologies[5]. e.g.shurdumova and d.m.kankulov understand tax administration as an organizational system that helps to implement the tax policy of the state[6]. obviously, tax administration is considered here from the point of view of its organizational function, the work of tax authorities to ensure the receipt of tax revenues to the budget and tax control. according to l.i. goncharenko, tax administration is only an integral element of such a broad concept as "management of the tax system". and the latter should be considered in a broad sense (as the activity of the state aimed at managing each element of the tax system) and in a narrow sense (as the management of tax authorities)[7]. from this it can be concluded that tax administration is based on normative legal acts (tax legislation), organizational activities of tax authorities for the implementation of tax policy and tax control. the approach presented by v.g.knyazev and l.ya. marshavina is quite interesting, where tax administration is part of the management process that has certain special features, among which are "engineering of tax relations", procedural (institutional) mediation and the predominance of the control function[8]. at the same time, e.a.fedorov, in collaboration with other researchers[9], defines the tax administration system as a complex that includes: • planning and forecasting of the tax burden based on the accounting of taxpayers (individuals and legal entities); • control, including a system of control measures (control of timely submission of declarations, tax audits, tax monitoring, control of transactions); • analysis related to the study of the effectiveness of taxation and the work of tax authorities, contributing to the development of measures aimed at improving taxation and tax administration. it becomes obvious that tax control in this definition is an element of tax administration, and tax administration is a set of measures. in the scientific works of a.v.grishchenko, who summarized the results on the essence and interpretation of the concept of "tax administration" given by other authors, it is substantiated that tax administration is a systemic activity of authorized (specialized) public authorities. in this context, the activity is aimed at the implementation and improvement of tax legislation, ensuring the effective functioning of the tax system and tax control[10]. in his opinion, tax administration is much broader american journal of business management, economics and banking volume 20 january, 2024 p a g e | 250 www.americanjournal.org than the concept of "tax control", it includes not only registration, accounting, control of taxpayers, objects of taxation, but also is associated with the analysis of the effectiveness of taxation, tax burden, and the development of changes in the tax system. analysis quite often you can find the opinion that the purpose of tax management in an enterprise is to minimize them. this leads to the fact that the tax administration is reduced only to the activities of organizations aimed at simply reducing their tax obligations, unfortunately, not only in theory, but also in practice. tax optimization is carried out in the process of tax planning, tax regulation and internal tax control by the organization. the most important role in optimizing tax flows is assigned to tax planning methods, which in a broad sense includes both the development of an organization's tax policy and the methods of tax regulation and tax control applied (intended to be applied) by the taxpayer. in its most general form, the tax planning toolkit includes methods of tax budgeting, the use of tax incentives and other methods of minimizing tax payments that are not prohibited by law, the use of transfer pricing and gaps in tax legislation, the implementation of the organization's tax policy and tax accounting.[11] if tax optimization is the goal of corporate tax management, then tax planning is a set of methods and tools to achieve the goal of tax management. tax optimization and tax planning involve such management activities of taxpayers, which allows not only to reduce the tax burden in a momentary situation, but also to ensure long-term savings on taxes, to get an economic effect from its investment, to avoid or reduce the risk of possible penalties in the future. reducing tax payments as a result of their optimization and planning should lead to an increase in the profit of the enterprise, and therefore meet the interests of the owners, managers and employees of the enterprise. however, this dependence is not always so direct and immediate. reducing some taxes may lead to an increase in others, as well as to tax sanctions from regulatory authorities. therefore, the most effective way to increase profitability is not to mechanically reduce taxes, but to minimize the tax burden based on the growth of production, sales and profitability of the business, i.e. building an effective enterprise management system and decision-making in such a way that the entire business structure is optimal.[12] the long-term sustainability of the effect of reducing the tax burden can be ensured by effectively investing in production, enterprise development, including funds released from the effect of reducing the tax burden. tax optimization and tax planning should also be based on taxpayers maintaining their price competitiveness in the market, bearing in mind that most taxes are included in the sale prices of goods and are paid by consumers. in modern uzbekistan, the most important reason for the need to minimize taxes by enterprises is associated with an excessive tax burden in comparison with the amount of benefits actually provided by the state to society, which was formed as a result of the high tax policy in the 1990s. it was this factor that gave rise to the practice of mass withdrawal of the economy into the "shadow" (illegal) and "gray" (semi-legal) sectors. the economic factors that cause taxpayers to strive to reduce tax payments are highlighted. they are divided into factors that depend on the financial condition of the taxpayer, and factors generated by the general economic situation. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 251 www.americanjournal.org if the taxpayer's financial condition is unstable or he is on the verge of bankruptcy, then tax minimization may be the only way to stay afloat. if the taxpayer's financial condition is stable, the value of minimization will depend on the amount of tax savings and the degree of risk of being held accountable in case of violation of tax legislation. the economic reasons generated by the general economic situation manifest themselves in different ways during periods of economic crises in the state and during periods of economic recovery and expansion of international cooperation. technical and legal reasons are also known, i.e. the reasons caused by the imperfection of tax legislation, which in turn is related to the complexity of the tax system. it should be noted that the tax legislation itself often gives the taxpayer the opportunity to optimize tax obligations. this is due to the presence of tax benefits in the legislation, different tax rates, different sources of attribution of expenses and expenses, ambiguity in the interpretation of provisions in tax laws due to the failure of the legislator to take into account all possible circumstances arising during the calculation or payment of taxes, the vagueness and vagueness of the wording of tax laws. in tax practice, there are various ways (types) of minimizing tax payments related to both violations of tax legislation by taxpayers and legitimate methods of reducing tax liabilities (reducing the tax burden).[13] ways to optimize taxes. tax optimization methods are diverse in nature. the most popular of them are shown in figure 1. fig. 1. ways to optimize taxes within the framework of corporate tax management[14] proposals to optimize taxes and ease the tax burden on taxpayers: 1) the tax system as a whole: a) frequent changes in tax legislation lead to great difficulties for the taxpayer. the current tax system complies with international standards, primarily the european model of the tax system. further significant changes in it are impractical. by the end of 2022, it is necessary to analyze the results of • change of jurisdiction • delegation of responsibility • accounting policy • relationship replacements separation of relationships deferred payment object reduction benefits preferences american journal of business management, economics and banking volume 20 january, 2024 p a g e | 252 www.americanjournal.org the tax system and make individual adjustments to it. after that, it is necessary to declare a moratorium for five years from 2023 on all major changes in the tax system, with the exception of changes in tax rates; b) by the level of the tax burden. in our republic, it is compared mainly with asian countries – the so–called asian tigers (south korea, china, taiwan, thailand, etc.). the average tax burden of these tigers is 21% of gdp. however, these countries do not declare the social orientation of their economies. they do not have pension payments, and there is no full-fledged pension system. each family takes care of its own elderly, i.e. it makes expenses, but they are not counted as taxes. in our country, the tax burden has already approached the "asian tigers" – in 2021. – 22.4% (without social payments, as they have). at the same time, it is necessary not to forget that we are a socially oriented republic.[15] in addition, if you pay attention to the share of taxes to gdp and the rating on doing business (world bank rating), then the level of tax burden does not always coincide with the rating of doing business. for example, the tax burden in china is 19.4%, but the rating is 130 points. conversely, the high tax burden in the czech republic is 35.5%, but the rating is 53, or in south korea it is 26.5%, and the rating is one of the best – 24 points.[16] this circumstance confirms that it is not always possible to increase the efficiency of the tax system only by reducing the tax burden. the reason is that the rating on douing business is compiled not only by tax burden, but by a set of indicators: the number of taxes, the number of tax payments, time to pay and prepare tax reports, the availability of an electronic reporting and payment system, etc. in conclusion, in order to expand tax instruments for regulating the economy, it is proposed to introduce additional criteria for the transition to a simplified taxation system in the form of a maximum annual turnover and book value of taxpayer assets, providing differentiated values of these criteria depending on the priorities of economic modernization. summarizing the above analysis, in general, it can be concluded that the republic of uzbekistan is undergoing major, ongoing reforms to create favorable tax regimes (conditions), through a wellthought-out tax policy, taking into account the most positive and adapted positive experiences of different countries. however, this does not exclude further reform of this important system of the market economy of uzbekistan, which is constantly developing and entering the world market. references 1. yuldasheva, u. a. issues of information support of financial analysis / u. a. yuldasheva // бухгалтерский учет, анализ и аудит: история, современность и перспективы развития : материалы xiv международной научной конференции студентов, аспирантов, преподавателей, санкт-петербург, 30 октября 2019 года. – санкт-петербург: санктпетербургский государственный экономический университет, 2019. – p. 213-217. – edn glbbob. 2. u.a. yuldasheva, & z.k.murtozaeva. (2022). entrepreneurship development and poverty reduction in uzbekistan based on the digital economy. архив научных исследований, 2(1). извлечено от https://journal.tsue.uz/index.php/archive/article/view/2080 3. u.a.yuldasheva. (2022). the impact of the tax burden on the financial activities of business entities. ilmiy tadqiqot va innovatsiya, 1(1), 55–63. retrieved from https://ilmiytadqiqot.uz/index.php/iti/article/view/9 https://journal.tsue.uz/index.php/archive/article/view/2080 https://ilmiytadqiqot.uz/index.php/iti/article/view/9 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 253 www.americanjournal.org 4. юлдашева, у. а. влияние налогового бремени на финансовую деятельность хозяйствующих субъектов / у. а. юлдашева // стратегии развития предпринимательства в современных условиях : сборник научных статей vii международной научнопрактической конференции, санкт-петербург, 05 апреля 2023 года / министерство науки и высшего образования российской федерации; санкт-петербургский государственный экономический университет. – санкт-петербург: санкт-петербургский государственный экономический университет, 2023. – с. 179-182. – edn hdrntl. 5. nazaralieva shohsanam ilkhom kizi, & yuldasheva umida. (2023). analysis of the development of the world monetary system in the period after the covid -19 pandemic. american journal of business management, economics and banking, 11, 60–63. retrieved from https://www.americanjournal.org/index.php/ajbmeb/article/view/611 6. у.а.юлдашева, & ш.наимов. (2023). promising directions for the development of foreign exchange transactions in uzbekistan. intent research scientific journal, 2(5), 50–60. retrieved from https://intentresearch.org/index.php/irsj/article/view/96 7. yuldasheva u. a., raxmatov a. t. xalqaro iqtisodiy integratsiyani kengaytirishda tashqi savdo aloqalarini rivojlantirish yoʻnalishlari //scholar. – 2023. – т. 1. – №. 14. – с. 25-30. 8. юлдашева у. а., ўғли наимов ш. о. халқаро валюта бозори ва операцияларини амалга оширишнинг назарий асослари //scholar. – 2023. – т. 1. – №. 13. – с. 66-72. 9. yuldasheva umida asanaliyevna. (2023). theoretical approaches to the concept of "tax potential" and methods of its assessment. european journal of emerging technology and discoveries, 1(8), 21–25. retrieved from https://europeanscience.org/index.php/1/article/view/302 10. yuldasheva umida asanaliyevna. (2023). tax potential as an indicator of sustainable development of the region. european journal of emerging technology and discoveries, 1(8), 41–45. retrieved from https://europeanscience.org/index.php/1/article/view/305 11. yuldasheva u. a. influence of tax policy on the financial condition of economic entities //экономика и социум. – 2019. – №. 4 (59). – с. 136-139. 12. yuldasheva u. a. the impact of the tax burden on the financial activities of business entities //ilmiy tadqiqot va innovatsiya. – 2022. – т. 1. – №. 1. – с. 55-63. 13. asanaliyevna y. u. tax reform of 2019 in uzbekistan //international journal on integrated education. – 2020. – т. 3. – №. 10. – с. 286-291. 14. юлдашева у. а. проблемы учета затрат на производство продукции (работ, услуг) в современных условиях //научные достижения и открытия современной молодёжи: актуальные вопросы и инновации. – 2017. – с. 172-174. 15. asanaliyevna y. u. et al. improving the identification and assessment of the tax potential of the regions //pedagogs jurnali. – 2022. – т. 5. – №. 1. – с. 184-193. 16. asanaliyevna y. u. et al. improving the identification and assessment of the tax potential of the regions //pedagogs jurnali. – 2022. – т. 5. – №. 1. – с. 184-193. https://www.americanjournal.org/index.php/ajbmeb/article/view/611 https://intentresearch.org/index.php/irsj/article/view/96 https://europeanscience.org/index.php/1/article/view/302 https://europeanscience.org/index.php/1/article/view/305 american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 83 www.americanjournal.org formation of competitive advantages of the enterprise bekbayeva feruza baxtiyerovna senior lecturer tashkent state university of economics tashkent, uzbekistan a b s t r a c t k e y w o r d s this article explores the process of forming competitive advantages within enterprises, aiming to elucidate strategies and methodologies that foster organizational success in competitive markets. through an in-depth analysis of various factors influencing competitive advantage development, including organizational culture, strategic planning, innovation, and market positioning, this study aims to provide valuable insights into enhancing the competitiveness of businesses. by identifying key determinants and leveraging opportunities effectively, enterprises can optimize their operations, differentiate themselves from competitors, and sustain long-term success in dynamic business environments. formation, competitive advantages, enterprise, organizational culture, strategic planning, innovation, market positioning, competitiveness, business environment. introduction in today's fiercely competitive business landscape, enterprises strive to gain a sustainable edge over their rivals by leveraging their unique strengths and resources. this pursuit of competitive advantage has become a cornerstone of strategic management, driving firms to continuously innovate and differentiate themselves in the market [1]. understanding the process of how competitive advantages are formed within enterprises is crucial for managers and business leaders seeking to enhance their organization's performance and long-term success. competitive advantage refers to the distinct attributes and capabilities that enable a company to outperform its competitors in the marketplace [2]. these advantages can arise from various sources, including superior product quality, efficient operations, innovative technology, strong brand reputation, or strategic positioning [3]. however, the process of forming competitive advantages is multifaceted and requires careful consideration of internal strengths, external opportunities, and industry dynamics. research in strategic management has identified several frameworks and approaches to understanding and developing competitive advantages. the resource-based view (rbv) of the firm emphasizes the importance of leveraging valuable, rare, and difficult-to-imitate resources and capabilities to achieve sustainable competitive advantages [4]. similarly, the dynamic capabilities perspective highlights the american journal of business management, economics and banking volume 23 april 2024 p a g e | 84 www.americanjournal.org role of organizational adaptability and agility in responding to changing market conditions and exploiting emerging opportunities [5]. in this article, we will delve into the intricacies of competitive advantage formation within enterprises. by examining key theories, models, and practical strategies, we aim to shed light on the mechanisms through which companies can effectively identify, develop, and capitalize on their competitive strengths. through a comprehensive understanding of these dynamics, organizations can position themselves for long-term success and resilience in an increasingly competitive business environment. materials and methods 1. resource-based view (rbv) of competitive advantage: the resource-based view (rbv) of competitive advantage posits that firms can achieve sustainable competitive advantages by leveraging their unique bundle of resources and capabilities. resources can be tangible, such as physical assets and financial capital, or intangible, including organizational knowledge, brand reputation, and intellectual property. capabilities refer to the firm's ability to deploy resources effectively to create value for customers and achieve superior performance [3]. according to the rbv framework, competitive advantages arise when firms possess resources that are valuable, rare, inimitable, and non-substitutable (vrin). for example, a pharmaceutical company may possess a patented drug formulation that provides it with a competitive edge due to its uniqueness and exclusivity. by leveraging such valuable and rare resources, firms can differentiate themselves from competitors and sustain their competitive positions over time. 2. dynamic capabilities perspective: the dynamic capabilities perspective extends the rbv framework by emphasizing the importance of organizational adaptability and agility in responding to changing market conditions and technological advancements. dynamic capabilities refer to a firm's ability to integrate, build, and reconfigure internal and external competencies to address rapidly evolving business environments [5]. in today's fast-paced and unpredictable markets, dynamic capabilities are essential for firms to stay competitive and seize new opportunities. for example, a technology company may invest in research and development (r&d) capabilities to continuously innovate and develop new products that meet evolving customer needs [6]. by fostering a culture of innovation and flexibility, organizations can enhance their resilience and ability to thrive in turbulent times. 3. strategic positioning and market orientation: strategic positioning involves identifying and occupying a distinct market niche where the firm can effectively compete and deliver unique value to customers [7]. through strategic positioning, firms can differentiate themselves from competitors based on factors such as product quality, price, customer service, or brand image. for instance, a luxury car manufacturer may focus on premium quality and superior craftsmanship to target affluent consumers seeking luxury vehicles [8]. market orientation, on the other hand, refers to the firm's responsiveness to customer needs, preferences, and market dynamics [9]. by maintaining a customer-centric approach and continuously monitoring market trends, firms can adapt their strategies and offerings to meet changing customer demands. for example, a retail company may gather customer feedback through surveys and focus groups to tailor its product assortment and marketing campaigns to specific target segments [10]. american journal of business management, economics and banking volume 23 april 2024 p a g e | 85 www.americanjournal.org 4. strategic alliances and collaborations: strategic alliances and collaborations can also contribute to the formation of competitive advantages by leveraging complementary resources, capabilities, and market access [11]. by partnering with other firms, organizations can access new markets, share risks and costs, and accelerate innovation. for example, a biotechnology company may collaborate with a pharmaceutical firm to jointly develop and commercialize a new drug therapy, pooling their expertise and resources for mutual benefit [12]. in summary, the formation of competitive advantages within enterprises involves a multifaceted process that encompasses resource leveraging, dynamic capabilities development, strategic positioning, and collaborative partnerships. by adopting a holistic approach to strategic management and continuously refining their competitive strategies, organizations can enhance their market position, profitability, and long-term sustainability. conclusion in conclusion, the pursuit of competitive advantages is essential for the long-term success and sustainability of enterprises in today's dynamic business environment. through strategic resource allocation, leveraging internal strengths, and exploiting market opportunities, organizations can carve out unique positions that differentiate them from competitors. the resource-based view (rbv) emphasizes the significance of valuable, rare, and non-substitutable resources in establishing competitive advantages, highlighting the importance of strategic resource management. furthermore, dynamic capabilities play a critical role in enabling firms to adapt and respond to changing market conditions effectively. by fostering a culture of innovation, continuous learning, and strategic agility, organizations can enhance their ability to seize emerging opportunities and address competitive threats. strategic alliances and collaborations offer avenues for firms to access additional resources, capabilities, and markets, augmenting their competitive positions. moreover, strategic positioning and market orientation are fundamental in aligning organizational strategies with customer needs and market trends. by understanding customer preferences and delivering superior value propositions, enterprises can enhance customer satisfaction and loyalty, thereby solidifying their market positions. however, it is essential for organizations to continually monitor market dynamics and adjust their strategies accordingly to sustain their competitive advantages over time. in summary, the formulation and execution of effective competitive strategies are critical for enterprises seeking to thrive in competitive markets. by leveraging their unique strengths, fostering innovation, and building strategic alliances, organizations can establish sustainable competitive advantages that drive long-term success and profitability. references 1. barney, j. (2001). firm resources and sustained competitive advantage. journal of management, 17(1), 99-120. 2. porter, m. e. (2015). competitive advantage: creating and sustaining superior performance. free press. 3. prahalad, c. k., & hamel, g. (1990). the core competence of the corporation. harvard business review, 68(3), 79-91. american journal of business management, economics and banking volume 23 april 2024 p a g e | 86 www.americanjournal.org 4. wernerfelt, b. (1984). a resource-based view of the firm. strategic management journal, 5(2), 171-180. 5. teece, d. j., pisano, g., & shuen, a. (1997). dynamic capabilities and strategic management. strategic management journal, 18(7), 509-533. 6. eisenhardt, k. m., & martin, j. a. (2000). dynamic capabilities: what are they? strategic management journal, 21(10-11), 1105-1121.porter, m. e. (1980). competitive strategy: techniques for analyzing industries and competitors. free press. 7. grant, r. m. (1991). the resource-based theory of competitive advantage: implications for strategy formulation. california management review, 33(3), 114-135. 8. kohli, a. k., & jaworski, b. j. (1990). market orientation: the construct, research propositions, and managerial implications. journal of marketing, 54(2), 1-18. 9. narver, j. c., & slater, s. f. (1990). the effect of market orientation on business profitability. journal of marketing, 54(4), 20-35. 10. gulati, r. (1998). alliances and networks. strategic management journal, 19(4), 293-317. 11. das, t. k., & teng, b. s. (2000). a resource-based theory of strategic alliances. journal of management, 26(1), 31-61. 12. sirajiddinov, n. (2017). currency regime of uzbekistan: goals, consequences, ways to improve. international relations: politics, economics, law, 2017(1), 72-88. 13. khaidaraliev, s. (2023). opportunities of uzbekistan in the development of mutual cooperation in central asia. 14. capolupo, r., & jonung, l. (2008). the effects of the real exchange rate volatility and misalignments on foreign trade flows in uzbekistan. economics discussion paper, (2008-29). 15. ibragimov, m., ibragimov, r., & sirajiddinov, n. (2009). modeling and forecasting income tax revenue: the case of uzbekistan. economic forecasting. economic issues problems and perspectives, 213-227. 16. dilshod og, t. i., & maratovna, t. l. (2023). davlat iqtisodiyotini yangi bosqichga erishishida “islom bank” ining ahamiyati. новости образования: исследование в xxi веке, 1(7), 13-17. 17. абдужабборов, н., & ташпулатова, л. (2024). o'zbekiston iqtisodiyotini modernizatsiyalash sharoitida islom moliyasining o ‘rni. узбекистан–стратегия 2030 с точки зрения молодых ученых: экономика, политика и право, 1(1), 205-208. 18. ташпўлатова, л. м. (2004). минтақанинг ижтимоий-иқтисодий салоҳияти. т.: тдиу. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 36 www.americanjournal.org the impact of inflation and interest rates on exchange rates in iraq lect. dr. jabbar saadoon darag al-nahrain university: baghdad, iraq. email: jabbar.saadon@nahrainuniv.edu.iq. a b s t r a c t k e y w o r d s the research included the concept of the exchange rate and the factors affecting it, as well as inflation in terms of the concept and the factors affecting it, and interest rates in terms of the concept and factors affecting the interest rate, for the period (2004-2023). data was used through the central bank of iraq. an autoregressive model was studied. through the ardl program, the results were that there was a relationship between the independent variables, represented by inflation and interest rates, and the dependent variable, represented by the exchange rate, through the results of the aforementioned model. exchange rate, interest rates, inflation, ardl introduction exchange rates parallel to the official exchange rates are one of the economic and financial indicators that express the strength of the economy of any country, whether developed or developing countries. exchange rates are affected by multiple political and economic factors, and among these economic factors are inflation and prevailing interest rates in the market. which reflect their impact on the exchange rate of the national currency in the market parallel to the official national exchange rate. this research focuses on the impact of inflation and interest rates on the exchange rates for the period (2004 2023), in iraq and some neighboring countries. the research produced several conclusions and recommendations, which are... 1. 1. research problem: iraq has gone through difficult economic, political and social conditions represented by a comprehensive international economic blockade that isolated the country from the outside world for the period between 1990 and early 2003 following iraq’s occupation of the state of kuwait and the subsequent deterioration of the economic and security situation until now, in addition to the consequences of the first gulf war during the decade of the 1980s left a heavy economic legacy that had a negative impact on the exchange rate, as an inevitable result of high inflation rates. american journal of business management, economics and banking volume 23 april 2024 p a g e | 37 www.americanjournal.org 1.2. research objectives: the research aims to confirm its hypothesis and thus identify the errors of the economic policies taken at the time and attempt to develop solutions to address them, which prevent their recurrence by adopting balanced economic monetary and financial policies that work in an integrated manner to reflect economic performance that thus reflects positively on achieving stability. 1. 3. research hypothesis: 2.previous studies: hakim mohsen muhammad, 2002, the impact of inflation and interest rates on exchange rates, and he stated that exchange rates are affected by multiple political and economic factors, and among these economic factors are inflation and interest rates prevailing in the market, which reflect their impact on the exchange rate of the national currency in parallel market for the national official exchange rate. this research focuses on the impact of inflation and interest rates on the parallel exchange rates for the period from (1992 2001) in iraq and some neighboring countries. mahmoud muhammad dagher, ihsan jabr ashour, 2014, and it was concluded through standard tests that there is a single cointegration between the money supply and the inflation rate and between the money supply and the parallel exchange rate, which confirms the existence of a long-term relationship between the variables, and the results of testing the error correction vector model also confirmed (vecm) the existence of a long-term, one-way causal relationship from the money supply to the inflation rate, which confirms that inflation in the iraqi economy is a monetary phenomenon and that expansions in the money supply have harmed economic stability, and also the existence of a long-term, one-way causal relationship from the parallel exchange rate to money supply, which indicates the impact of the exchange rate on the money supply and then economic stability in iraq, which indicates the use of the exchange rate channel primarily by monetary policy to transfer the monetary impact to economic activity. bouzidi souad, taleb dalila, 2017, the impact of changing the interest rate and the money supply on the real exchange rate. the study showed that there is a long-term relationship between the exchange rate as a dependent variable and both the interest rate and the money supply as independent variables, as the money supply has a negative impact on the exchange rate. 3. the theoretical framework of inflation, interest rates and exchange rates 3. 1. inflation 3. 1. 1.the concept of inflation inflation is defined as an increasing rise in the prices of consumer goods. this definition is one of the simplest types of definitions of inflation. there are other definitions, but this definition is clearer from the consumer’s point of view, and inflation may be accompanied by full employment in exchange for a decrease in unemployment, as prices rise as the percentage of employment of the unemployed increases (jawad shaker freih, ahmed hussein battal, 108, 2023). 3.1. 2. factors affecting inflation inflation arises due to various economic factors, the most prominent of which are: cost-induced inflation: this type of inflation arises due to the rise in operational costs in industrial or non-industrial companies, such as the contribution of company management in raising the salaries american journal of business management, economics and banking volume 23 april 2024 p a g e | 38 www.americanjournal.org and wages of its employee members, especially those who work in production sites, which comes due to workers’ demands to raise wages (yahya, widad younis, 100, 2001). demand-induced inflation: this type of inflation results from an increase in the volume of money demand, which is accompanied by a fixed supply of goods and services, as the increase in aggregate demand is not matched by an increase in production. leading to higher prices inflation resulting from total changes in the composition of total demand in the economy, even if this demand is excessive or there is no economic concentration, as prices can rise and cannot fall despite a decrease in demand, (jawad shaker freih, ahmed hussein battal, 108, 2023) . inflation resulting from the practice of economic blockade towards other countries, practiced by external forces, as is happening to iraq and cuba. therefore, imports and exports are absent in the case of a total blockade, which leads to high inflation rates and thus a decline in the value of the national currency and an increase in prices at unreasonable rates. 3.2. exchange rates 3. 2 . 1. the concept of exchange rate exchange rates represent the conversion relationship between currencies, and this depends on the supply and demand relationships between two currencies. the foreign exchange rate is the price of a currency unit with a corresponding currency unit of another country, (2023, 127, (hanan hassan mustafa, hajir adnan zaki) and is expressed in the national currency. such as the iraqi dinar against the dollar, the jordanian dinar, the syrian pound, or the french franc against the german mark. the foreign exchange rate expresses the amount of units of one of the two currencies that are exchanged for one unit of the other currency. there are two types of exchange rates, which are fixed exchange rates and free exchange rates., (hakim mohsen muhammad, 153, 2002. 1. fixed exchange rates: fixed exchange rates are determined in light of some foundations determined by the official administration in the country to determine the fixed exchange rate, and this relationship between the two currencies does not change except within very limited margins. 2. free exchange rates: the exchange rates of the national currency change against other currencies based on the relationship between supply and demand for the currency in the foreign exchange market, and this change occurs freely in the free exchange rates. 3. 2 . 2. factors affecting exchange rates: exchange rates are affected by several factors, the most prominent of which are: 1. high exchange rates for foreign currencies, which leads to a decrease in the value of the national currency against these currencies (damodaran, aswath, 66, 1999). 2. the decline in exports or the decline in their prices affects the volume of cash flows entering the country. 3. wars and natural disasters affecting the national economies of countries, as this affects the imbalance in the strength of the national economy, which leads to a decline in the value of the national currency against other currencies. 4. inflation rate: the high rate of inflation in national economies leads to a decrease in the value of the national currency against other currencies, and thus the exchange rate is affected, which leads to an increase in the number of units of the national currency that are exchanged for one unit of its corresponding foreign currency. american journal of business management, economics and banking volume 23 april 2024 p a g e | 39 www.americanjournal.org 5. external debt and debt service: external debt is one of the burdens that burden the national economy, in addition to the debt service represented by annual interest installments. some countries may resort to rescheduling their debts with creditors in exchange for high interest, which makes these countries pay the interest and not the original installments, and this means an imbalance. the national currency against other currencies (madura, teff, 2000, 78). 6. interest rates: interest rates affect exchange rates indirectly. low interest rates with the availability of investment opportunities lead to an increase in demand for capital with the aim of investing it. investment is achieved, the national economy is stimulated, and investment is doubled to achieve the strength of the national economy, which leads to an improvement in the value of the national currency. towards other currencies. while high interest rates lead to investors avoiding the trend towards borrowing, resulting in a decline in investment and a decline in economic growth, which leads to adverse results that reduce the strength of the national economy, and this is reflected in the value of the national currency towards other currencies. weston, j, fneel & brigham, f, engene, 34, 1997). 3. 3. interest rates 3. 3 . 1. the concept of interest rate the interest rate is the amount resulting from the process of borrowing money from a bank or commercial institution, and is usually expressed as a rate or percentage. the term interest may also express the percentage that an investor owns in the capital of a particular company. the interest rate is affected by many variable factors, such as the inflation rate, the duration of the lending period, the degree of liquidity, and the risk of default on payments due, (1988, 210, henning, n, cgarles, pigott, willian & haneyseott, robert). 3. 3 . 2. factors affecting the interest rate 1. forces of supply and demand: the interest rate is directly affected by the rates of supply and demand for money within the country’s economy. an increase in demand for credit will lead to higher interest rates and thus higher costs of the borrowing process, and vice versa. reduced demand for credit. over time, interest rates will decrease, and thus the cost of the borrowing process will decrease (damodaran, aswath, 33, 1999). 2. inflation rate: interest rates rise directly with rising inflation rates, and the reason for this is that the parties that lend money use the money generated by the interest to limit their losses resulting from the currency losing its value due to high inflation rates (brenner, menachem & venezia , it zhak ,44,2003) 3. government policies: the government’s movements in the market affect interest rates. if the government buys bonds, the amount of money in the hands of banks will increase, so banks reduce interest rates with the aim of encouraging the public to borrow from them, so that the money does not remain frozen without benefiting from it. when the government sells these bonds, this reduces the bank’s ability to lend, causing interest rates to rise (henning, n, cgarles, pigott, willian & haneyseott, robert, 207, 1988). american journal of business management, economics and banking volume 23 april 2024 p a g e | 40 www.americanjournal.org 4 statistical analysis 4.1. data examination: data can be examined, using measures of central tendency, measures of dispersion, a normal distribution test, and graphs. all of these statistical operations are considered part of data examination. descriptive statistics can be clarified for the dependent variable represented by public debt, and the independent variables represented by the exchange rate and the interest rate. . 4. 1. 1. table no. (1), showing the normal distribution of the independent variables (mi, i) and the dependent variable (er) the table below shows that the exchange rate follows a normal distribution, with probability being greater than 1% and greater than 5%, while the interest rate variable and inflation do not follow the distribution, with probability being less than 5%. therefore, we accept the alternative hypothesis and reject the null hypothesis. i mi er mean 7.125000 8.605000 124.7500 median 6.000000 3.450000 117.5000 maximum 20.00000 64.80000 147.0000 minimum 4.000000 -4.400000 116.0000 std. dev. 4.495246 16.15932 12.24691 skewness 1.841709 2.504346 0.994699 kurtosis 5.183845 8.608913 2.176448 jarque-bera 15.28062 47.12242 3.863288 probability 0.000481 0.000000 0.144910 sum 142.5000 172.1000 2495.000 sum sq. dev. 383.9375 4961.350 2849.750 observations 20 20 20 4. 1. 2. table no. (2) normal distribution of the exchange rate variable. 0 2 4 6 8 10 12 14 115 120 125 130 135 140 145 150 series: er sample 2004 2023 observations 20 mean 124.7500 median 117.5000 maximum 147.0000 minimum 116.0000 std. dev. 12.24691 skewness 0.994699 kurtosis 2.176448 jarque-bera 3.863288 probability 0.144910 the exchange rate follows a normal distribution, with probability (0.144910) being greater than 5%, and therefore we accept the null hypothesis and reject the alternative hypothesis. american journal of business management, economics and banking volume 23 april 2024 p a g e | 41 www.americanjournal.org 4. 1.3. table no. (3) normal distribution of the interest rate variable. 0 2 4 6 8 10 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 series: i sample 2004 2023 observations 20 mean 7.125000 median 6.000000 maximum 20.00000 minimum 4.000000 std. dev. 4.495246 skewness 1.841709 kurtosis 5.183845 jarque-bera 15.28062 probability 0.000481 the interest rate follows a normal distribution, with probability (0.000481) being less than 5%. therefore, we accept the alternative hypothesis and reject the null hypothesis. 4. 1. 4. table no. (4) normal distribution of the inflation variable. 0 2 4 6 8 10 12 14 16 -10 0 10 20 30 40 50 60 70 series: mi sample 2004 2023 observations 20 mean 8.605000 median 3.450000 maximum 64.80000 minimum -4.400000 std. dev. 16.15932 skewness 2.504346 kurtosis 8.608913 jarque-bera 47.12242 probability 0.000000 inflation does not follow a normal distribution, since probability (0.000000) is less than 5%, and therefore we accept the alternative hypothesis, and reject the null hypothesis. 4. 2. unit root test 4. 2 .1 . table no. (5) shows the exchange rate static test null hypothesis: er has a unit root exogenous: constant lag length: 1 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -3.193285 0.0374 test critical values: 1% level -3.857386 5% level -3.040391 10% level -2.660551 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 18 augmented dickey-fuller test equation dependent variable: d(er) american journal of business management, economics and banking volume 23 april 2024 p a g e | 42 www.americanjournal.org method: least squares date: 01/13/24 time: 06:32 sample (adjusted): 2006 2023 included observations: 18 after adjustments variable coefficient std. error t-statistic prob. er(-1) -0.471040 0.147509 -3.193285 0.0060 d(er(-1)) 0.472934 0.219500 2.154594 0.0479 c 57.20933 18.24065 3.136365 0.0068 r-squared 0.436417 mean dependent var -0.833333 adjusted r-squared 0.361273 s.d. dependent var 8.382405 s.e. of regression 6.699254 akaike info criterion 6.792881 sum squared resid 673.2000 schwarz criterion 6.941276 log likelihood -58.13593 hannan-quinn criter. 6.813343 f-statistic 5.807710 durbin-watson stat 2.004516 prob(f-statistic) 0.013558 from the table above it is clear that the exchange rate is stationary at the original level (constant), and in a slowdown phase of 1, the exchange rate is stationary, (probability (0.0374), at the level of 5%. 4. 2 .2 . table no. (6) interest rate static test null hypothesis: i has a unit root exogenous: constant, linear trend lag length: 1 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -4.620279 0.0091 test critical values: 1% level -4.571559 5% level -3.690814 10% level -3.286909 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 18 augmented dickey-fuller test equation dependent variable: d(i) method: least squares date: 01/13/24 time: 06:35 sample (adjusted): 2006 2023 included observations: 18 after adjustments variable coefficient std. error t-statistic prob. i(-1) -0.812524 0.175860 -4.620279 0.0004 d(i(-1)) 0.711969 0.176509 4.033617 0.0012 c 10.66520 2.653346 4.019531 0.0013 american journal of business management, economics and banking volume 23 april 2024 p a g e | 43 www.americanjournal.org @trend("2004") -0.450975 0.146405 -3.080329 0.0081 r-squared 0.659275 mean dependent var 0.027778 adjusted r-squared 0.586262 s.d. dependent var 3.457610 s.e. of regression 2.224020 akaike info criterion 4.629640 sum squared resid 69.24771 schwarz criterion 4.827500 log likelihood -37.66676 hannan-quinn criter. 4.656922 f-statistic 9.029602 durbin-watson stat 0.947072 prob(f-statistic) 0.001403 from the table above it is clear that the interest rate is static at the original level and at the longest model (constant, linear trend), and a slowdown rate of 1. ,the interest rate, probability (0.0091), will remain at 1%. 4. 2 .3 . table no. (7) static inflation test null hypothesis: mi has a unit root exogenous: none lag length: 0 (automatic based on sic, maxlag=1) t-statistic prob.* augmented dickey-fuller test statistic -2.626257 0.0116 test critical values: 1% level -2.692358 5% level -1.960171 10% level -1.607051 *mackinnon (1996) one-sided p-values. warning: probabilities and critical values calculated for 20 observations and may not be accurate for a sample size of 19 augmented dickey-fuller test equation dependent variable: d(mi) method: least squares date: 01/13/24 time: 06:36 sample (adjusted): 2005 2023 included observations: 19 after adjustments variable coefficient std. error t-statistic prob. mi(-1) -0.461810 0.175843 -2.626257 0.0171 r-squared 0.271120 mean dependent var -1.452632 adjusted r-squared 0.271120 s.d. dependent var 16.51011 s.e. of regression 14.09542 akaike info criterion 8.180772 sum squared resid 3576.253 schwarz criterion 8.230480 log likelihood -76.71734 hannan-quinn criter. 8.189185 durbin-watson stat 2.452677 american journal of business management, economics and banking volume 23 april 2024 p a g e | 44 www.americanjournal.org from the table above it is clear that inflation is stationary at the original level and at none, i.e. without (constant, linear trend), and a slowdown of 1, being stationary at the first level and not at the original level. inflation is stationary (probability 0.0116), at the level of 1%. 4.3: cointegration test 4. 3. 1 . table no. (8), johansen model test between the independent variables and the dependent variable. date: 01/20/24 time: 07:36 sample (adjusted): 2006 2023 included observations: 18 after adjustments trend assumption: linear deterministic trend series: er i mi lags interval (in first differences): 1 to 1 unrestricted cointegration rank test (trace) hypothesized trace 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.956616 64.60246 29.79707 0.0000 at most 1 0.342792 8.124663 15.49471 0.4522 at most 2 0.031121 0.569085 3.841466 0.4506 trace test indicates 1 cointegrating eqn(s) at the 0.05 level * denotes rejection of the hypothesis at the 0.05 level **mackinnon-haug-michelis (1999) p-values unrestricted cointegration rank test (maximum eigenvalue) hypothesized max-eigen 0.05 no. of ce(s) eigenvalue statistic critical value prob.** none * 0.956616 56.47780 21.13162 0.0000 at most 1 0.342792 7.555578 14.26460 0.4257 at most 2 0.031121 0.569085 3.841466 0.4506 max-eigenvalue test indicates 1 cointegrating eqn(s) at the 0.05 level * denotes rejection of the hypothesis at the 0.05 level **mackinnon-haug-michelis (1999) p-values through the table above, the results appear, and it has two parts, the first is statistic trace and the second part is statistic max-eigen. in the first part, one cointegration vector appears, which is none * and it is significant (0.0000 probability), and it was confirmed through statistic trace (64.60246). greater than (29.79707critical value), and therefore we judge that the model is significant regardless of the second and third vector, and therefore we reject the null hypothesis, and accept the alternative hypothesis. 4. 3 .2 . table no. (9) autoregressive test for distributed time lags using the ardl test. through the table above, we see the importance of the model through (0.0003 probability) the exchange rate, (0.0003 probability), the interest rate, and a probability of 0.0113, significant american journal of business management, economics and banking volume 23 april 2024 p a g e | 45 www.americanjournal.org regardless of the lack of importance of the independent variable, inflation, in addition to choosing the calculated f of 14.55488, (the probability of the f-statistic being equal to 0.000103) dependent variable: er method: ardl date: 01/13/24 time: 06:52 sample (adjusted): 2005 2023 included observations: 19 after adjustments maximum dependent lags: 1 (automatic selection) model selection method: akaike info criterion (aic) dynamic regressors (1 lag, automatic): i mi fixed regressors: c number of models evalulated: 4 selected model: ardl(1, 0, 0) variable coefficient std. error t-statistic prob.* er(-1) 0.761882 0.160025 4.761008 0.0003 i -1.103809 0.382248 -2.887676 0.0113 mi 0.179935 0.127676 1.409312 0.1791 c 35.47790 18.91749 1.875402 0.0803 r-squared 0.744309 mean dependent var 123.6316 adjusted r-squared 0.693171 s.d. dependent var 11.48531 s.e. of regression 6.361955 akaike info criterion 6.723212 sum squared resid 607.1171 schwarz criterion 6.922042 log likelihood -59.87052 hannan-quinn criter. 6.756862 f-statistic 14.55488 durbin-watson stat 1.737402 prob(f-statistic) 0.000103 *note: p-values and any subsequent tests do not account for model selection. 5. conclusions and recommendations: 5. 1. conclusions 1. a rise or fall in the rate of inflation will lead to higher rates of interest rates. . 2 high interest rates reduce the willingness of investors and businessmen to assume, while their decrease encourages assumption and investment, which is reflected in doubling investment, monitoring the national economy, and improving the value of the national currency. 3. the exchange rate is affected by inflation rates, as high inflation leads to a decline in the value of the national currency, and the exchange rate changes accordingly. 4. stable exchange rates in some countries, which is not consistent with changing economic conditions. 5. 2. recommendations 1. reducing government spending in all its forms and raising the tax rate on the profitability of activities that do not reflect positive effects on the national economy. 2. activating the role of central banks (central banks) in practicing monetary policy in order to influence the liquidity circulating in the market. american journal of business management, economics and banking volume 23 april 2024 p a g e | 46 www.americanjournal.org 3. activating the role of the ministry of finance in practicing financial policy to influence the liquidity circulating in the markets as well. 4. making data available to researchers on inflation rates, interest rates, and official and parallel exchange rates specifically. 5. activating the role of productive institutions to increase production and improve performance. references 1. al-amin and pasha, abdel-wahhab, zakaria abdel-majeed, principles of economics part two macroeconomics dar al-maarifa kuwait 1983. 2. al-shamaa, khalil muhammad hassan, financial administration, baghdad, 1992. 3. al-amiri, muhammad ali ibrahims, iraqi journal of administrative sciences, foreign exchange rate a theoretical introduction, volume one issue two volume 1, 2001 issued by the university of babylon college of administration and economics. 4. yahya, widad younis, critical theory, dar al-kutub for printing and publishing, university of mosul mosul 2001. 5. raad hassan, basics of contemporary international trade, part 1, al-hana information series damascus, 200 6. jawad shaker freih, ahmed hussein battal, the impact of total banking risks on some indicators of economic stability in iraq using the limits test for the period 2004-, al-reyadah finance and business magazine, al-nahrain university, college of business. economics, volume 4, issue 2, april, 2023.weston, j, fand copel and, t, e, managerial finance, adapted by a.f fox and r.j limmack, , 2ed, uk edition, 1988. 7. madura, teff, inter national financial, management, 6th. ed, new york, 2000. 8. weston, j, fned, besley, seott & brigham, f, essentials of managerial finance, ll. ed, new york, 1996. 9. henning, n, cgarles, pigott, willian & haneyseott, robert, fiancial markets and the economy, prentice hall, new jersey, 1988. 10. weston, j, fneel & brigham, f, engene, essentials of managerial finance, 10. eel, the dryden press, vew york, 1993. 11. damodaran, aswath, applied corperate finance, new york. john willey & sons, ine, 1999. 12. brenner, menachem & venezia, it zhak, the effext of inflation and taxes on jrowth inrestments anel replace ment policies, the jourunal of finance, vol, xxx viii, december,2003. 13. hanan hassan mustafa , hajir adnan zaki , the window for selling foreign currency and its role in influencing the exchange rate of the iraqi dinar (an analytical study for the period 2003-2021), al-reyadah journal of finance and business, al-nahrain university, college of business economics, vol 4, no 4, dec. , 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 222 www.americanjournal.org issues of practical application of international financial reporting standards in the republic of uzbekistan alimov alisher ulashevich graduate student of termez state university a b s t r a c t k e y w o r d s the article is devoted to the need of international financial reporting standards of enterprises in uzbekistan, it describes the specific features of the national economy, the reform of national accounting, the increasing role of the republic of uzbekistan in the world economic integration. international financial reporting standards; economic integration; economic strategy; investment attractiveness; national financial reporting standards. introduction the integration of our country's economy with the world economy is being observed. we develop our economy stably by producing competitive products and exporting products to foreign countries. for this purpose, on june 2, 2023, the decision of the president of the republic of uzbekistan no. pq-181 "on additional measures to accelerate the process of becoming a member of the world trade organization of the republic of uzbekistan" was adopted. also on february 24, 2020, the president of the republic of uzbekistan signed the decision no. pq-4611 "on additional measures for the transition to international standards of financial reporting". in order to achieve economic and financial stability in our republic, the production of high-value and import-substitute goods by enterprises, as well as the increase of exportable goods, is closely related to the organization of effective management of economic entities. because every economic entity, while making a profit, certainly seeks to expand its activities and get more profit, which will directly lead to the growth of the country's economy and reduce the need for imported products, as well as to foreign countries. it also creates an opportunity to export.by accelerating the transition to the international financial reporting standards (ifrs), the opportunities to provide foreign investors with the necessary information environment and access to international financial markets will be expanded. ifrs is a universal accounting language that reduces the differences between different national accounting systems by harmonizing regulations, standards and the procedure for compiling and presenting reports, as well as building a tax base taking into account all the information disclosed in it. in addition, ifrs is an ideal instrument of market relations that ensures the investment attractiveness of any organization. american journal of business management, economics and banking volume 22 march 2024 p a g e | 223 www.americanjournal.org ifrs serve as an important tool for developing cooperation between countries, including economic relations, and improving the investment environment in countries. that is why the number of countries that recognize international standards is increasing day by day.companies entering international markets must provide their foreign partners with reliable and open information about the company's activities. in particular, it makes it necessary to organize accounting on the basis of international standards of financial reporting using international experience. it was this problem that determined the relevance of the topic of the dissertation research. the issues of adapting national legislation and law enforcement practices to the rules, norms and agreements of the world trade organization are also specified in the priority areas defined in the "uzbekistan 2030" strategy.one of the objectives of the strategy is strengthening the export potential of the national economy and sharply increasing the share of products with high added value in its structure is considered as one of the important tasks: to double the export volume to 45 billion dollars, increase the number of exporting enterprises from 6,500 to 15,000; to increase the volume of finished and semi-finished products in export by 3.3 times, expand the export of finished and technological products to european countries within the framework of gsp+ and other systems; to increase the number of enterprises with international standards by 10 times and increase their number to 5 thousand; organization of special economic zones with 50 prestigious brands of the world; based on the idea of "new uzbekistan the country of competitive products", full support is provided to exporters who bring national brands to foreign markets. all of the above is largely dependent on the transition to international standards of financial reporting in national enterprises and the application of profit tax in accordance with international standards. it is based on the international norms, criteria and standards used by the leading international rating companies today, and is based on the introduction of a modern system of evaluation and analysis, which allows to objectively assess the progress of the financial condition of enterprises to the level of higher evaluation indicators accepted throughout the world. currently, the republic of uzbekistan is carrying out intensive work on the gradual transition of enterprises to international financial reporting standards. new accounting provisions are being developed and previously approved ones are being clarified, and they are being put into practice; the quality of adopted standards, as well as their use in the form of tools for managing organizations, interacting with external partners and obtaining loans plays an important role. also, a new contract was signed with the ifrs fund in order to develop a national financial reporting standards (nfrs) harmonized with international standards by summarizing the 24 current national accounting standards. as a result, the asian development bank (adb) supported the ministry of finance of uzbekistan within the framework of the small and medium business development program, which is being implemented in order to increase the ability of uzbekistan's small and medium business entities to prepare financial reports on the basis of ifrs. national financial reporting standards (nfrs) project developed by the ministry of finance on the basis of ifrs for small and medium-sized enterprises (sme)s based on the contract with the ifrs fund. american journal of business management, economics and banking volume 22 march 2024 p a g e | 224 www.americanjournal.org however, the main difficulty today is the formation of a mechanism for quality control of reporting and its audit, the construction of a system for training and advanced training of ifrs specialists, and the improvement of economic education in terms of focusing on in-depth study of international standards. as for the ifrs methodology, in this case the most difficult area is the application of various types of accounting valuation of assets and liabilities, calculating the amounts of impairment and present value. this point is very important in accounting. discounting is an essential tool for providing a reliable representation of a company's financial position, and is considered one of the most difficult technical issues an accountant faces when preparing financial statements under ifrs. based on the above, it should be noted that the transition to international standards in the republic of uzbekistan contains important economic and political significance. since, the preparation of reporting in accordance with ifrs opens up the opportunity for uzbek organizations to join international capital markets, and reporting indicators constructed in accordance with ifrs make the reporting understandable and reliable for foreign investors. this reinforces the conviction of western investors that investments in organizations that keep records and prepare reports in accordance with international standards reflecting the real financial position of the organizations. references 1. lambert r., leuz, chr., verrecchia, r.e. [2007]. accounting in formation, disclosure, and the cost of capital. journal of accounting research 45: (issue 2) 2. dan dhaliwal, wen he, yan li, raynolde pereira. accounting standards harmonization and financial integration. contemporary accounting research. first published: 28 march 2019. 3. rizaev n. kadirov s. adjusting national accounting standards in compliance with international standards inuzbekistan (as exemplified by intangible assets). pedagogical sciences and teaching methods. volume 2, issue 19january 2023. collection of scientific works. berlin 11 january2023 interonconf.com. 4. jumaev nadir hosiyatovich, rizaevnurbekkadirovich, & isaev fakhriddinikromovich. (2023). organization of turkic states: interoperation and accounting system. british journal of global ecology and sustainable development, 13, 116–129. retrieved from https://journalzone.org/index.php/bjgesd/article/view/245. https://journalzone.org/index.php/bjgesd/article/view/245 american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 196 www.americanjournal.org the concept of the digital economy, its significance and development trends qodirov azamatjon bakhodirovich chief specialist of "asia alliance bank" jscb, master of science in information systems and technologies in economics email: azamattosan@mail.ru a b s t r a c k e y w o r d s this article discusses the concept of digital economy, its role in management and its importance in achieving economic prosperity. also, some statistical data obtained from open sources are presented, and based on them, an attempt is made to explain why the use of digital technologies is important. in addition, at the end of the article, an attempt is made to give an understanding of "artificial intelligence" and to shed light on why it is important. economy, digital economy, digital technologies, human capital, effective use of resources, artificial intelligence. introduction in the current era of human development, the use of digital technologies in all areas of the economy is becoming crucial. the degree of development of digital technologies is of great importance in the organization of an effective and competitive economy, in the optimal use of material and non-material resources. the use of digital technologies not only leads to an increase in the quality of goods and services but also creates conditions for reducing costs. at the same time, the use of digital technologies creates several conveniences in limiting the hidden economy, ensuring transparency, preventing corruption, and establishing effective communication between the state and society [1,2]. for this reason, in recent years, the processes of transition of the economy to a form based on the systematic use of information and communication technologies or the so-called "digital economy" have accelerated all over the world. in the decision of the president of the republic of uzbekistan dated april 28, 2020 "on measures for the widespread introduction of the digital economy and electronic government", the implementation of this practice in the economy of our country, doubling the share of the digital economy in the gross domestic product in 2023, important tasks such as increasing the volume of their exports to 100 million us dollars and tripling the volume of services in the field have been set [3]. literature review according to many researchers, the concept of "digital economy" was first coined by nicholas negroponte, a scientist at the massachusetts institute of technology. according to him, the digital economy as a new economic system is characterized by the fact that digital products do not have american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 197 www.americanjournal.org physical weight and their quantity is replaced by the size of information, the area occupied by the product is several times smaller, the resource costs in the production of electronic goods are low, and products can be purchased through the internet. it has the advantage of moving very quickly across the surface of the earth. some scientists also use terms such as "network economy", "electronic economy", "internet economy", and "information economy" to explain the concept of "digital economy". but "digital economy" is a relatively broad concept that summarizes the terms listed above. the concept of "digital economy" has been defined differently by different organizations or scholars. for example, according to experts from the world bank, the digital economy is a new example of rapid economic development based on real-time information exchange and represents a system of economic, social and cultural relations based on the use of digital information and communication technologies [4-11]. table 1. definitions of the digital economy source description english definition kling & lamb 2000: in brynjolfsson & kahin 2000a "… includes goods or services that are highly dependent on digital technologies for their production, sale or delivery" "...includes goods or services whose development, production, sale, or provision is critically dependent upon digital technologies". oecd 2013: the digital economy "the digital economy makes it possible to sell goods and services through e-commerce on the internet." "the digital economy enables and executes the trade of goods and services through electronic commerce on the internet". european commission 2013: expert group on taxation of the digital economy “… an economy based on digital technologies (sometimes called the internet economy)” "...an economy based on digital technologies (sometimes called the internet economy)". deloitte n.d.: what is digital economy? “…economic activity resulting from the billions of daily online interactions of people, businesses, equipment, information and processes” "...the economic activity that results from billions of everyday online connections among people, businesses, devices, data, and processes." methodology the method of induction and deduction was widely used in the analysis of issues in the research work. the concept of the digital economy was closely studied. in the article, statistical information provided from open sources on the global internet network, the opinions of the world's leading scientists in this field, and the views of influential organizations were highlighted and compared. logical approach, cause and effect, induction and deduction methods were used to conclude the work. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 198 www.americanjournal.org results and discussion in the 20th century, areas such as exploitation of underground resources, industry and construction were seen as the main drivers of the world economy, the observed trends, and many scientific centres and scientists call the 21st century the age of "information technologies" or "digital technologies". are predicting. every awake layer of the society sees the confirmation of this in their daily life. that is, to date, every member of society regularly uses some elements of the digital economy, such as electronic (gas, electricity) meters, electronic payment systems, and plastic cards. it is enough to get acquainted with the list of the largest companies in the world to feel the importance of the digital economy. the top 10 largest companies in the world are shown in the picture below. figure 1. market value of companies from the above image created on the basis of the www.statista.com site, it can be seen that today the largest companies in the world are those whose activities are directly related to digital technologies. except for saudi aramco (saudi arabia) and lvmh moët, henessey, louis vuitton (france), the companies shown in the graph are all top digital technology creators and all are based in the united states. through this example, it is easy to understand why the usa is not leading the world. indeed, when value is created through digital technologies or the digital economy, the underground or surface wealth of countries is almost not involved, and on the contrary, human capital, scientific achievements and creativity appear as the main resources. this situation means that by the 21st century, human capital and the development of science have become the main factors in creating national wealth, not material wealth. considerable work has been done in this regard in our country, and banking, finance, tax, education, health care, internal affairs bodies, cadastre, social protection and other various fields are the most used by the population and business representatives. are using technologies more and more and the scope of services is increasing day by day. 2746.21 2309.84 2055.22 1340.53 1084.06 708.4 599.82 539 482.5 477.38 apple (usa) microsoft (usa) saudi aramico (saudi arabia) alphabet (usa) amazon (usa) nvidia (usa) meta platforms (usa) tesla (usa) lvmh henessey, louis, vuitton (france) visa (usa) market value of companies (in billions of us dollars) american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 199 www.americanjournal.org it's no secret that many of the above-mentioned services and hundreds of other services can be easily implemented through the www.my.gov.uz site, which creates several conveniences and advantages for individuals and legal entities. the number of services provided through this website and the scope of population coverage is increasing year by year. in addition, every ministry and agency in our country has its own website. it has been established that ministries and agencies can provide their own services remotely through the internet, and serious attention is being paid to infrastructure and personnel training to speed up these activities. the latest trend in the development of digital technologies is the widespread and deep penetration of artificial intelligence elements into the life of society. this phrase is used more and more often not only by world scientists but also by ordinary people. the term artificial intelligence has different definitions in different sources. for example, the website www.wikipedia.org defines this concept as follows: "artificial consciousness, artificial intelligence, or artificial intelligence (english: artificial intelligence; usually abbreviated as ai) is the consciousness displayed by machines, as opposed to the natural consciousness displayed by humans or animals. leading artificial intelligence textbooks define the field as the study of "intelligent agents: any system that understands its environment and takes actions that maximize the chance of successfully achieving its goals." according to many scientists, in the future we will increasingly turn to artificial intelligence in many aspects of our social, economic and even political life. today, we see its elements in driverless cars, various electronic translators, various smart gadgets and other electronic devices. the world's leading it companies emphasize that in the future, the tendency to use artificial intelligence in management, education, production, transportation, social research, medicine, law and other fields will inevitably be observed. conclusions based on the above, it can be concluded that the term "digital economy" has not been given a clear and uniform definition. therefore, it is important to understand that the digital economy is at least an economy based on digital technologies, or that the use of digital technologies in production, transportation, sale and purchase is also a manifestation of the digital economy. in addition, it is important to keep in mind that digitization of the economy will remain a priority in the future, and that artificial intelligence will play a huge role in this. it's also becoming increasingly clear that one of the most important things you can do is to anticipate how digital technologies will affect our economy. given that the geographical location of the republic of uzbekistan is far from waterways, it causes some inconvenience in international trade. references 1. decision of the president of the republic of uzbekistan dated april 28, 2020 "on measures for the widespread introduction of the digital economy and electronic government" 2. volkova, n., kuzmuk, i., oliinyk, n., klymenko, i., & dankanych, a. (2021). development trends of the digital economy: e-business, e-commerce. 3. алексеенко, о. а., & ильин, и. в. (2018). цифровизация глобального мира и роль государства в цифровой экономике. информационное общество, (2), 25-28. http://www.my.gov.uz/ http://www.wikipedia.org/ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 200 www.americanjournal.org 4. горскина, л. с., & пропп, о. в. (2019). развитие цифровой экономики в россии. вопросы инновационной экономики, 9(2), 275-286. 5. петросян, а. (2016). что нужно знать о цифровой экономике и ее перспективах. url: http://www. kommersant. ru/doc/3063024 (дата обращения: 29.07. 2017). 6. kelly, k. (1999). new rules for the new economy: 10 radical strategies for a connected world. penguin. new york: viking, 224 p. 7. http://www.vsemirnyjbank.org/ru/ events/2016/12/20/developing-the-digital-economyin-russiainternational-seminar-1. 8. https://uz.wikipedia.org/wiki/sunʼiy_intellekt 9. www.statista.com sayti 10. хусанбоев, с. е. (2022). перспективные направления развития агротуризма в республике узбекистане. бюллетень науки и практики, 8(5), 476-482. 11. european commission 2013: expert group on taxation of the digital economy. http://www.statista.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 33 www.americanjournal.org employing the value stream mapping by using the process activity mapping to improve the efficiency of the medical service ahmed hameed eesa, marketing management department, college of administration and economics, tikrit university, iraq email: ahmedahmed197809@gmail.com saeed hamad eslaim, salahdin health directorate, iraq email: said_ra23@yahoo.com a b s t r a c t k e y w o r d s this study sought to employ the value stream mapping by using the process activity mapping as one of its tools in redesigning the medical service in order to increase its efficiency. by getting rid of the waste that makes the waiting time for the patient longer at a time when he is in dire need of the necessary health care, with the shortest possible waiting period. the problem of the study is represented in the large number and length of the approved procedures for treating the patients, which led to an increase in waiting times, which negatively affected the value of the service provided to the customer. the study derived its importance as it deals with one of the most vital sectors, and an attempt to arouse the interest of health organizations. the study followed the method of a case study, in its applied side, it relied on analyzing current value stream mapping through the use of one of its tools (process activity mapping) in order to identify waste, eliminate it or reduce it, and identify potential improvement areas, thus contributing to achieving the requirements of agility in work to improve the efficiency of service provided to customers. the study reached a set of conclusions, the most important of which are: "long waiting times and low service efficiency indicators for the case of the research sample, the lack of effective maintenance and repair systems to qualify important and expensive devices, in addition to their great importance in facilitating tasks and reducing waiting time". value stream mapping, operation activity mapping, service efficiency. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 34 www.americanjournal.org introduction the health sector is one of the most important service sectors, as it provides the solid ground for building a healthy person who is free of diseases in a manner commensurate with divine honor. organizations in this sector must find an effective tool in order to remove all activities that do not add value to customers and improve the efficiency of the service provided to them in the manner that it leads to success, and development in this field is among the most important basic indicators for measuring the level of civilization and economic progress of any country. the problem of the study is represented in the large number and length of procedures adopted in the treatment of patients, which led to an increase in waiting times, as well as the distance between the necessary health services centers, which negatively affected the value of the service provided to the customer in terms of cost, service quality expectations, actual benefits, effort, time, and rest. in order to stand on the reality of the provided health service, the problem of the study is launched through the following question: to what extent does the use of the value stream mapping affect improving the efficiency of health service? does its use contribute to reducing waiting times or improving the efficiency of the service provided in the organization? what are the results achieved as a result of its application to streamline and design the health service in a distinct way? the study aims to identify the reality of operations activities in the organization, the available capabilities and the extent to which this tool can be applied, and to determine the impact of its use in order to direct attention towards activities that do not add value from the customer's point of view, and work to identify and remove or reduce them whenever possible. thus, the current study is of great importance when selecting one of the organizations of this vital sector that provides one of the noblest humanitarian services, which is tikrit teaching hospital. where the study dealt with how to use one of the most important tools of the value flow map to identify waste and reduce or remove it whenever possible and potential areas for improvement in a way that contributes to providing a service commensurate with the interest desired by the service applicant and bringing this organization to the level of competition with private medical clinics in light of the endless care of this sector by the state. as the study adopted the process activity mapping (one of the value stream mapping tools) for this purpose and its adoption in drawing a map of the current value flow to depict operations accurately identifying activities that add value and activities that do not add value in order to take appropriate measures to reduce waiting times and improve the efficiency of the provided service. the study proved the possibility of using this tool in this consultancy and that it has a high ability to solve its problems and achieve a rapid response to the customer's requirements and needs. literature review 1.value stream mapping 1.1. value stream mapping concept it is a lean manufacturing technique used in continuous improvement programs to help understand and improve the flow of material and information within organizations. it was originally developed within the toyota production system. matters, identifying waste, reducing process cycle times, and applying process improvement, and in some organizations it has become a function of their agile application, and in some areas it can be a critical technique for documenting process and eliminating waste, since every improvement initiative must start from a clear understanding of current performance and the idea of achieving minimal waste. (pitcher, 2009:2). (kadam, et al., 2012: 26) indicates that it is a set of methods that visually display the flow of materials and information throughout the production process, and focus on activities that add value and remove those that add cost and not value, in order to achieve a long-term goal at the time of performance. (reducing set-up american journal of business management, economics and banking volume 21 february, 2024 p a g e | 35 www.americanjournal.org times, improving quality, shaping the cell, improving the supplier relationship and trying to reduce inventory). whereas, abdul samad, et al., (2013:23) indicated that it can be a communication tool, an action planning tool, and a tool for managing the change process in the organization. it allows documenting the current production waiting time, inventory levels, and cycle times in order to determine the value-added percentage of the total waiting time for the product family currently, and to create a vision of an ideal value stream. by representing the flow of materials and information, and providing a common language to explain the process, which helps in making decisions to get rid of waste, and based on the foregoing, it represents an agile visual technique used in redesigning productive systems by displaying material and information flows with reference to all activities (that add value). and those that add cost and not value) required to provide a good or service to the customer, provide a common language for talking about the manufacturing process, evaluating the current process with the aim of identifying the sources of waste and its sources, and a tool that contributes to formulating the process of change in the organization, as well as it shows the future improvement approach through creating a better flow vision towards the value that the customer expects. 1.2. value stream mapping tools researchers and practitioners have found focusing on the value stream mapping a major issue, as there are many tools for this map used to improve and redesign manufacturing systems with the aim of making them more efficient, flexible and competitive to meet the challenges of the economic market in their classification environment. these tools were initially developed by (hines & rich) in 1995 in their article (the seven tools of value stream mapping) in response to the widespread recognition of the seven types of waste that were defined by (ohno). these tools were created to help lean practitioners identify waste. the appropriate methods for improvement (wan, etal., 2007: 2), and these tools are: (process activity mapping, supply chain response matrix, production variety funnel, quality filter mapping, demand amplification mapping, decision point analysis, physical structure mapping, (hines & rich, 2013:50). 1.3. value stream mapping steps the steps of the value stream map are embodied in the following: (abuthakeer et al, 2010:54); ( apel et al., 2007:11) ;( ritsch, 2006:2-4) define the product or product family draw a map of the current state. . . analyze the present value flow map and identify problem areas . . draw a map of the future state . . preparing and implementing an action plan . where the first step involves choosing a specific product (a specific case) on which the value stream map will focus. after using the chosen product, a value stream mapping is created for the current process. after completing the current value stream map, the team evaluates the process and the steps that it includes. all this information was collected on a map. performance analysis. each step in the process is mapped to an initial value flow that includes metrics such as (cycle time, takt time, work –in-process (wip), setup time, down time, number of workers number, and waste ratio). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 36 www.americanjournal.org the value stream mapping (vsm) identifies the added value in the process, and also displays all the other steps that do not add value. after analyzing and evaluating the current process of the product, the problem areas can be identified with the aim of reducing them completely, so that the final value flow map can be created. the last step is to implement the ideas new technologies that will in turn create a more efficient agile manufacturing process. (apel et al., 2007: 11) figure (1) the steps of the ideal value stream mapping 2. process activity mapping 2.1.process activity mapping concept it is a technique for analyzing the flow in the visual work site (de bucort, et al., 2012:3) and it is a gradual introduction of the process that works as an aid in lean manufacturing to identify and remove process steps that do not add any value to the customer, through which the current state of the process can be understood (gopalakrishnan, 2010:87), and its origins in industrial engineering, which includes a set of techniques that can be used to remove waste from the work site, inconsistencies, and absurdities, and provide high-quality products quickly and easily, and it is a technique known by several names as the most common process analysis, and there are five stages to this approach it is “the study of the flow of processes, the identification of waste, the consideration that a process can be rearranged into a more efficient chain, the consideration of whether everything there is working at each stage is absolutely necessary” (hines & rich, 2013:51). (daniel & julie, 2008:144) believes that it is a graphic representation or illustration of the process that shows the inputs, outputs, and steps of the process depending on the purpose of the map and it can be at a high level or detailed. as for (slack, et al, 2010:97), they see it as a simple and easy way to record the details of the process and for future analysis, usually. described (hizer & render, 2011:293) as a tool that uses symbols, time, and distance to provide a structured and complex means of analyzing and recording events. krajewski, et al, )2013:149) defined it as an organized method of recording all the activities performed by people, machines at workstations, with clients or materials. based on the foregoing, it is considered a visual tool that shows the activities that take place on a specific product from start to finish, step by step, smoothly, to identify weaknesses and activities that add or do not add value, and then identify potential development and improvement opportunities. the process activity mapping is defined by a number of symbols (icons) that provide a common language that describes in detail how to create value for the organization, whether it is industrial or service, shown in table (1). )slack et al, 2010:97); )krajewski et al, 2013:150). product or product family draw a map of the future state analysis of the current state map draw a map of the current state action plan and implementation american journal of business management, economics and banking volume 21 february, 2024 p a g e | 37 www.americanjournal.org table (1) symbols of the process activity mapping symbols inventory transport process delay examination source: prepared by researchers based on the aforementioned sources. the process activity mapping is an effective tool that enables us to know what is happening now, how to predict it and why. it also helps us collect information to understand where waste and inefficiency lie and its impact on stakeholders. it also helps to develop new and improved processes that contribute to reducing or eliminating inefficiency. 2.2.benefits of the process activity mapping: the process activity mapping contributes to achieving a number of benefits: (gopalakrishnan, 2010:89) a. helps the lean manufacturing team understand the current process as well as identify opportunities for improvement. b. determine the actual methods that show the locations of dangerous problems and possible solutions by linking ideas, information and data related to the process in a visual and effective manner. c. the team was able to examine each step of the process while clearly defining the waste in the process and its report on the future (developed) process map. d. the agile team can use the current and future process activity mapping to clearly quantify the improvement. e. the process activity mapping can be used as a visual training tool for people in the developed process. 3. service efficiency 3.1.service efficiency conceptualization the concept of service design refers to everything that makes service delivery desirable, effective, efficient, usable and useful to the customer. as for service redesign, it is defined according to what was stated in it (al-taie, 2006: 26) that it means rethinking the foundations of work, and radically changing the design and paths of operations in order to radically improve performance levels in terms of cost, quality of services, and speed. (heizer & render, 2011: 303) indicated that service redesign is a rethinking of the business foundations to bring significant improvements in performance. effective process design relies on re-evaluating the process purpose and basic assumptions, and focuses on activities across cross functional lines and on dramatic improvements in cost, time. , and customer value. service quality is defined as the difference between the level or nature of service that the customer expects and the level or nature of service that the customer perceives (robert & lindsay, american journal of business management, economics and banking volume 21 february, 2024 p a g e | 38 www.americanjournal.org 2007: 2). he explained (chalabi, 2011: 53) that the quality of service is "the ability or ability of the organization to meet or exceed the customer's expectations and perceptions." the medical service was defined as "all events and activities carried out by health organizations with all their members, and at all levels of society with all its members, to reach their physical, psychological and social safety and thus reach a relatively healthy society". according to (kotler & clarke, 1997: 332), the quality of medical service represents the level of awareness achieved from the performance results of the medical service, compared to what it was earlier (zaidan, 20: 2012). 3.2.quantitative indicators used in the study the study relied on a set of quantitative indicators appropriate to the nature of the study data, as shown in table (2). table (2) the quantitative indicators used in the study approved sources calculation method quantitative indicators (jacobs et al.,2009:175) the maximum time allowed to complete one unit at each workstation cycle time 1 depending on the actual working hours per day in the organization. 6 hours * 60 minutes available time 2 (heizer&render,2009:228) operations time + examination time + primitives preservation time total time to add the value 3 (heizer&render,2009:228) transfer time + time delays total time to nonadd the value 4 (al-daffi,2011:9) total time to add value + total time not to add value waiting time 5 bonaccorsi et al.,2011:432) ) available time per day / average number of reviewers per day takt time 6 total value adding time / total waiting time service efficiency 7 source: prepared by the researcher based on the sources mentioned in the table 4. scheme of the study in light of the problem of the study and its objectives and within its theoretical and applied context, the procedural scheme for the study was prepared according to the principles of agile, represented by the procedures used to transform from the current work reality to a future map of the value stream that proposes the necessary improvements to advance the current service reality, as in figure (2). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 39 www.americanjournal.org figure (2) the procedural chart of the study action plan and implementation diagnosis of the process of tasks and practical activities of the case (sample of the study). collecting and analyzing data on practical tasks and activities (current scheduling, information flow, average number of auditors per day, number of working personnel, time available for work, times (cycle, operations, waiting, completion, checking), distances, number of valid, idle and stored devices). ) a study of the work case in the advisory division (study sample) and its extensions of divisions and related units covered by the approval. determine customer requirements (health service ) description of the current value stream mapping describe the flow of operations activities and the interdependence of tasks. determine real time. calculation of times (operations, examination, cycle, delay, transfer, preservation).. review and evaluate the current value stream mapping defining waste and naming it. calculating value-added times and non-value-added times. calculation of waiting time. calculate the efficiency of the service provided. preparing a future value stream mapping make improvements -deleting unnecessary procedures, merging procedures, creating new procedures, rearranging stations. -reducing times (wait, cycle, operations). improving the efficiency of the service provided. -reduce the distances. change some locations as often as possible. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 40 www.americanjournal.org the applied side of the study a case (cerebral thrombus) will be selected, which is one of the cases received by the consultant brain and neurological medicine at tikrit teaching hospital, as it is among the longest consultations in terms of waiting times and low service efficiency. • current value stream mapping of the case (cerebral thrombus) it is one of the cases that come to this consultant, whether from the emergency division or according to the referral system from the health centers, which requires taking the necessary medical measures without worsening the patient’s health condition through a set of measures collected in the scheme (process activity mapping) and as in appendix (1). the table shows (3) a summary of the process activity based on the process activity map for the case in question, as shown in figure (3) the current value flow map related to the case referred to above. table (3) a summary of the activity of the current process for a reviewer with a cerebral thrombus in the brain and neurological medicine consultation distance (meter) total time (min) number of symbols symbols procedures 44.5 9 processes 1120 62.5 7 moving 248 9 delay 5 2 examination 1 1 preservation american journal of business management, economics and banking volume 21 february, 2024 p a g e | 41 www.americanjournal.org figure (3) refers to the patient or his family’s review at the box office to cut a review ticket for the brain and neurosurgery consultation in a time of (1) minutes, then he moves to the consultancy to be registered with the nurse in a time of (1.5) minutes to be examined by the specialist doctor in a time of (2) minutes and a report referring it to the ecg to perform the planning and receiving it in a time of (10) minutes, then transferring it to the laboratory to perform some analyzes, where the sample is withdrawn in a time of (3) minutes and the result is received in a time of (2) minutes, then it is transferred to the scan to record in (1) minutes and the scan is performed in (20) minutes and receives the report in (1) minutes, then returns to the specialist doctor to view the results of the analyzes, planning and examination report in (3) minutes and describes the necessary treatment to be received from the istihariyat pharmacy in a time of (4) minutes and keeps his priorities there in (1) minutes and then leaves consultancy; the total time for adding the value was (50.5) minutes and the total time for not adding the value was (310.5) minutes. thus, the total waiting time was (361) minutes, which was calculated by: total value adding time = operations time + checking time + primitives saving time = 44.5 + 5 + 1 = 50.5 minutes total time not adding value = time for transitions + time for delays min total value adding time=50.5 total time not adding value =310.5 min figure (3) current value stream mapping for the case of (brain thrombus) 1 1 9 10 9 3 150 2 28 2 35 21 28 tickets collector p at h o ge n d o ct o r ec g la b la b m ar sh al m ar sh al d o ct o r re gi st ra ti o n p re lim in ar y ch ec k p la n n in g an d r ec ei vi n g sa m p le w it h d ra w al r ec ei p t o f th e re su lt s o f th e an al yz es re gi st ra ti o n c h ec k an d r ec ei ve t h e re p o rt p la n n in g re vi ew , a n al yz es r es u lt , s ca n r ep o rt , an d t re at m en t d es cr ip ti o n 19 p h ar m ac y r ec ei vi n g tr ea tm en t an d p re se rv in g th e fi rs ts d ep ar tu re 4 29 5 0.5 3 1.5 advisory reviewer american journal of business management, economics and banking volume 21 february, 2024 p a g e | 42 www.americanjournal.org = 62.5 + 248 = 310.5 minutes total waiting time = total value adding time + total no value adding time = 50.5 + 310.5 = 361 minutes that is, the value-adding time percentage of the total waiting time is (approximately 14%), while the non-value-adding time constitutes (86%) of the total waiting time, which necessitates the necessity of addressing the waste resulting from movements and delays in order to expedite the treatment of the patient and alleviate his pain and thus then: service efficiency =total value addition time 50.5 / the total waiting time 361= (0.1398) = 14% approximately proposed (future) value stream mapping figure (4) shows the proposed (future) value flow map for a reviewer with a cerebral thrombosis who came to this consultancy. min total value adding time=23.5 total time not adding value=96.5 min figure (4) suggested(future) value stream mapping for the case of (brain thrombus) in the brain 0.5 0.5 1 4 2 2 2 1 60 1 5 0.5 13 مة قي ال فة ضا إ ت قا أو tickets collector p at h o g en d o ct o r ec g la b la b m ar sh a l m ar sh a l d o ct o r re gi st ra ti o n p re lim in ar y ch ec k p er fo rm a n e c g a n d r ec ei ve t h e ch ar t sa m p le w it h d ra w al r ec ei p t o f th e re su lt s o f th e an al yz es r eg is te r p er fo rm t h e ch ec k an d r ec e iv e th e re su lt a n al yz es , s cr ee n in g re p o rt , a n d tr ea tm en t d es cr ip ti o n 3 p h ar m ac y r ec ei vi n g tr ea tm en t an d p re se rv in g th e fi rs ts d ep ar tu re 10.5 3 2 7 1.5 0.5 advisory reviewer american journal of business management, economics and banking volume 21 february, 2024 p a g e | 43 www.americanjournal.org table (4) summary of the proposed operation activity for a patient with a stroke in the brain and neurological medicine consultant distance (meter) total time (min) number of symbols symbols procedures 17 9 processes 310 15.5 7 moving 81 7 delay 6 2 examination 0.5 1 preservation total value adding time = operations time + checking time + primitives saving time = 17 + 6 + 0.5 = 23.5 minutes total time not adding value = time for transitions + time for delays = 15.5 + 81 = 96.5 minutes total waiting time = total value adding time + total no value adding time = 23.5 + 96.5 = 120 minutes that is, the percentage of the value adding time out of the total waiting time (approximately 20%), while the time not adding the value constitutes (80%) of the total waiting time, thus: service efficiency =total value addition time 23.5 / the total waiting time 120= (0.1958) = 20% approximately conclusion by comparing the results reached in the present value flow map with the results above, the following is evident: the total time to add value in the current value flow map is (50.5) minutes, the total time to add value in the proposed value flow map is (23.5) minutes, and the total time not to add value in the current value flow map is (310.5) minutes, and the total time not to add value in the flow map the proposed value is (96.5) minutes, which indicates a reduction of waste by (53.5 %) from the time of adding the value, and by (69%) from the time of not adding the value. service efficiency reached (14%) in the current value flow map, while in the proposed value flow map it reached (20%). figure (4), which represents the proposed value flow map, was based on the following: american journal of business management, economics and banking volume 21 february, 2024 p a g e | 44 www.americanjournal.org 1. opening three ticket outlets instead of one, which reduces waiting time in front of the box office . 2. priority is given to the patient in this case, given that his condition is special. 3. exerting more effort than the (administrative) nurse to reduce registration and scheduling time. 4. the skill of the nurse responsible for drawing the sample reduced the operation time from (2) minutes to (1) minutes 5. repairing the defective device in the chemistry unit and qualifying it for service instead of manual work, and adding a device to the hematology unit that reduces the waiting time for receiving the results of the required analyzes . 6. increasing the number of drug suppliers in the consultant pharmacy to (2) suppliers, which reduced the waiting time in front of the pharmacy to receive treatment . 7. a greater effort was made by the administrator in charge of memorization to reduce the period of memorizing primitives to (0.5) minutes. 8. the cycle time in the present value flow map was (21) minutes, while in the proposed value flow map (15.5) minutes, with a decrease of (5.5) minutes, or by (26%), which means a contribution to streamlining the completion of the current operations procedures in this div. references 1. abdul samad, mahammad ; saiful alam & tusnim, nishat, (2013), "value stream mapping to reduce manufacturing lead time in a semi – automated factory", shahjalal university of science & technology, sylhet, bangladesh, asian transaction on engineering (ate), vol.2, no. 6. 2. abuthakeer, s.s. ; mohanram, p.v & kumar, g. mohan, ( 2010 ), "activity based costing value stream mapping" , international journal of lean thinking, vol. 1, no.2 . 3. al-daffi, zainab kamel kazem, (2011)," re-designing the service by applying the lean production entrance", master's thesis in business administration, college of administration and economics, university of baghdad, iraq. 4. al-taie, amal sarhan suleiman, (2006), "the role of information and communication technology in product technology", master's thesis in business administration, college of administration and economics, university of mosul, iraq. 5. apel, wolfgang ; yongli, jia & walton, vanessa, (2007), "value stream mapping for lean manufacturing implementation", bachelor of science / university of science & technology. 6. bonaccorsi, andrea ; carmignani, gionata & zammori, francesco, ( 2011 ), "service value stream management ( svsm) developing lean thinking in the service industry" , journal of service science and management, vol. 13 , no.4. 7. chalabi, al-zahraa sabah abdul-hassan, (2011), "dimensions of quality and its impact on marketing excellence", master thesis in business administration, college of administration and economics, university of baghdad, iraq. 8. daniel b, & julie m, ( 2008 ), "health care, operations management" . 9. de bucourt, maximilian ; buss, reinhard ; guttler, felix ; reinhold, thomas & vollnberg, bernd, (2012), "process mapping of pta and stent placement in a university hospital interventional radiology department", charity – university medicine berlin mdb@charite.de . 10. gopalakrishnan n., (2010), "operation management", 10th ed, pearson education, inc., publishing as prentice hal, new jersey. 11. heizer, jay & render, barry, ( 2011), "operation management", 10th ed, prentice – hall, new york . american journal of business management, economics and banking volume 21 february, 2024 p a g e | 45 www.americanjournal.org 12. heizer, jay & render, barry, (2009), "operations management" 9th ed, prentice hall, new jersey. 13. hines, peter & rich, nick, (2013), "the seven value stream mapping tools", emerald international journal of operations & production management vol.17 , no.1. 14. jacobs, f. robert ; chase, richard b. & aquiland, nichols, (2009), "operations supply management" , 12th ed , mcgraw-hill , irwin , boston. 15. kadam, sandip j. ; shende, prashant . n. & kamble, p.d., (2012), "value stream mapping tool for waste identification in type – rim assembly of tractor manufacturing", international conference on emerging frontiers in technology for rural area . 16. krajewski, lee j. ; ritzman, larry p. & mathotra, manojk., (2013), "operation management : processes and supply chains", 9th ed, person prentice – hall, new jersey. 17. pitcher, michael, ( 2009 ), "profitable applications of value stream mapping" , operations excellence consulting , inc. www.excelence1.com. 18. ritsch, bill, (2006), "value stream mapping helps service industries eliminate waste", www.isosupport.com . 19. robert, glushko & lindsay, tabas, (2007), bridging the "front stags" and "back stage" in service system design , uc berkeley school of information , scholarship university of california . www.escholarship.org. 20. slack, nigel ; chambers, stuart & johnston, robert, (2010 ), "operations management", 6th ed, pitman publishing, london . 21. wan hung – da ; chen , f. frank & rivera, leonardo, (2007), " leanness score of value stream maps", proceedings of the 2007 industrial engineering research conference , g. bayraksan , w.lin, y.son and r.wysk , eds . 22. yadrifil, rahman ; irvanu, akbar, faisal, (2013), "design of lean production system using integrated value stream mapping approach", proceeding, 6th international seminar on indonesia, february 12th-14th ز 23. zaidan, hussein ghazi, (2012), "measuring the dimensions of medical service quality in the private wards of governmental and private hospitals, higher diploma in hospital management", college of administration and economics, university of baghdad, iraq appendix (1) current process activity mapping for a reviewer with a cerebral thrombus case in the brain and neurological medicine consultation individ uals distance (meter) time (min) description of procedure steps step number 1 17 ◦ ticket window 1 1 ◦ cut the review ticket 2 25 2 ◦ switch to advisory 3 1 1.5 ◦ nurse / recording and scheduling 4 3 ◦ queuing to enter the doctor 5 1 2 ◦ doctor's examination 6 10 1 ◦ referral to ecg 7 http://www.excelence1.com/ http://www.escholarship.org/ american journal of business management, economics and banking volume 21 february, 2024 p a g e | 46 www.americanjournal.org 8 ◦ queue awaiting planning action 8 1 10 ◦ perform planning and receive the result 9 60 4 ◦ switch to the laboratory 10 5 ◦ line up for sample collection 11 1 3 ◦ sample withdrawal 12 150 ◦ waiting for the result of the analyzes 13 2 ◦ receipt of the result 14 500 28 ◦ move to the checker 15 1 2 ◦ register 16 20 ◦ wait before making the check 17 2 20 ◦ examination with a check 18 15 ◦ waiting to receive the result 19 1 ◦ receipt of the result 20 500 25 ◦ go back to the doctor 21 3 ◦ waiting to enter the doctor 22 3 ◦ analyzes, screening report, and treatment description 23 20 2 ◦ go to the pharmacy 24 1 27 ◦ wait in front of the pharmacy 25 4 ◦ receipt of treatment 26 1 1 ◦ save the primitives 27 5 0.5 ◦ patient leaving consultancy 28 appendix (2) proposed (future)process activity mapping for a reviewer with a cerebral thrombus case in the brain and neurological medicine consultation individ uals distance (meter) time (min) description of procedure steps step number 3 1 ◦ ticket window 1 0.5 ◦ cut the review ticket 2 25 2 ◦ switch to advisory 3 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 47 www.americanjournal.org 1 0.5 ◦ nurse / recording and scheduling 4 1 ◦ queuing to enter the doctor 5 1 4 ◦ doctor's examination 6 5 1 ◦ referral to ecg 7 1 ◦ queue awaiting planning action 8 1 2 ◦ perform planning and receive the result 9 35 2 ◦ switch to the laboratory 10 2 1 ◦ sample withdrawal 11 60 ◦ waiting for the result of the analyzes 12 1 ◦ receipt of the result 13 200 5 ◦ move to the checker 14 1 0.5 ◦ register 15 8 ◦ wait before making the check 16 2 10 ◦ examination with a check 17 5 ◦ waiting to receive the result 18 0.5 ◦ receipt of the result 19 20 3 ◦ go back to the doctor 20 2 ◦ analyzes, screening report, and treatment description 21 20 2 ◦ waiting to enter the doctor 22 3 5 ◦ go to the pharmacy 23 1 ◦ receipt of treatment 24 1 0.5 ◦ save the priorities 25 5 0.5 ◦ patient leave advisory 26 american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 116 | p a g e navigating financial success: the importance of cost accounting in the oil and gas industry atabayeva zamira abdujalilovna lecturer, department of accounting and audit, fergana polytechnic institute, fergana, republic of uzbekistan e-mail: z.atabaeva@ferpi.uz a b s t r a c t k e y w o r d s this study delves into critical challenges faced by oil refineries, particularly focusing on issues such as insufficiently developed cost management systems and the intricacies surrounding the formation of production costs. it highlights the pivotal role of computerization within the production process, emphasizing its capability to effectively address modern challenges in oil refining production. the paper further explores the primary objectives of accounting within the oil and gas sector, shedding light on the necessity for robust systems that accurately capture and analyse financial data. additionally, it discusses the pivotal role of digital information derived from automated control systems in facilitating production management, showcasing the importance of leveraging technology for informed decision-making in the industry. information technology, production management, modern production, process computerization. introduction currently, information for effective enterprise management is becoming more and more relevant. the determining indicator of the retention of all types of resources of an economic entity are costs, information about which forms the basis of the information space of management accounting, and also serves as the initial data in a large number of tasks solved in it. against the backdrop of instability in global energy markets, as well as the introduction of a tax manoeuvre, the main strategic goal of oil refineries was to increase the efficiency of oil refining, and the strategic objectives were to increase profitability and optimize costs. every decision made regarding cost reduction, as well as the volume and structure of product sales, ultimately affects the key indicator of the company’s performance, namely, net profit. today, the main problems of oil refineries remain the insufficient development of the cost management system and the formation of product costs. in this regard, the competent use of sound cost accounting methods will significantly reduce production costs, and increase net profit and profitability, which is the primary goal of any business entity. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 117 www.americanjournal.org in a dynamically developing market, the question arises about the advisability of using alternative approaches to cost accounting. one of the modern tools for approaching and implementing cost accounting today is carried out using information technology. materials and methods information technologies serve as the most important tool for the most effective implementation of business process management. a rational approach to the use of information technology in the oil and gas business is needed; this will improve the profitability and quality of management of economic processes. one of the areas of application of information technology in the oil and gas business is the use of intelligent technologies [1-4]. information technology plays the highest role in the development of intelligent technologies in the oil and gas industry. data obtained using innovative technologies are processed using computers; a more conceptual approach is required to calculate all the necessary parameters in the overall conduct of the oil and gas business. production management and obtaining prompt, accurate information about the condition of equipment in modern production is not an easy task. modern production is a production where the technological production process is inextricably linked with computer information technologies, namely, the production process is programmed and controlled by computers under the direct participation and supervision of the operator [5-11]. computerization of the production process allows you to effectively solve the following problems: − for working equipment, set the specified parameters for the production of products, which allows you to achieve high identity and quality of the finished product; − promptly and locally or centrally make adjustments to the production process; − receive information about the state of production and compliance of products with design parameters and standards; at the same time, with the use of information computer technologies, it becomes possible to receive a package of the following digital information and, taking them into account, manage production: − dynamically receive information about the real state of the equipment and predetermine deviations from the calculated parameters; − manage equipment maintenance based on a software package that displays its real condition and includes a database of enterprise equipment, modules for planning maintenance and preventive maintenance, filing repair requests, etc.; − module and package of digital information on costs for material support of production, warehouse accounting and requests for the purchase of materials, equipment, spare parts, sales of products, etc.; − the condition of metering devices and the actual metering of energy consumption, accounting for losses of raw materials and finished products and their compliance with established standards; − financial condition and accounting of the enterprise; − accounting for the availability and movement of material, financial and labour resources and providing information on them to managers; − accounting for costs and income and deviations therefrom from established norms, standards and estimates for the organization as a whole, structural divisions, responsibility centres, product american journal of business management, economics and banking volume 19 december, 2023 p a g e | 118 www.americanjournal.org groups, and technological solutions; − calculation of various indicators of the actual cost of products (works, services) and deviations from standard and planned (indicators of full production cost, incomplete production cost, full cost of products sold, cost of products sold by sales zones, etc.); − determining the financial results of the activities of individual structural divisions by responsibility centres, new technological solutions, products sold, work and services performed and other items; − control and analysis of the financial and economic activities of the organization, its structural divisions and other centres of responsibility; − planning the financial and economic activities of the organization as a whole, its structural divisions and other centres of responsibility; − forecasting and forecast assessment (providing an opinion on the impact of expected future events based on the analysis of past events and quantifying them for planning purposes); − preparation of management reporting and its provision to management personnel and specialists for production management and decision-making for the future. the main purpose of this accounting is to provide managers and specialists of the organization and structural divisions with planned, actual and forecast information about the activities of the organization and the external environment to ensure the possibility of making informed management decisions [12-17]. of course, at enterprises, there are various systems for operational control of the technological process, dispatch control systems, production communications, etc., but still, it is currently impossible to achieve a completely objective picture of the state of production without modern computerized automated control systems for equipment maintenance and repair systems. paperwork and the human factor cannot ensure troubleshooting and deviations of the parameters of manufactured products from the calculated ones specified by generally effective production management [18-21]. how does a computerized digital information system for production management differ from numerous “paper” production management systems, and what are the tasks and ways to solve them: 1. the condition of the equipment should be displayed on well-known technological diagrams. but the vast majority of available diagrams display technological indicators and the “working” or “not working” status. to solve this problem, it is necessary to create a software package that, through conversion, generates and creates a database from existing diagrams and drawings, which will allow recognition of all elements, their numbering, creation of an active database of all equipment (pipelines, fittings, pumps, pressure vessels, etc.) with their current state displayed on the “mother” technological diagram. in other words, based on the existing diagrams, an engineering database of the technical condition of equipment is created, and accessible to all interested specialists of the enterprise. if there are no diagrams and drawings, you need to create them, i.e. “draw” pipelines, pumps, and vessels from nature, taking all necessary measurements, including flanges, gaskets, studs, bolts, welds, etc. and direct application of them. 2. undoubtedly, there is a lot of equipment and how to deal with them. to do this, it is necessary to create a hierarchical structure of the enterprise, into which all available equipment is reduced by ownership or technological relationship (by workshop or division). in addition, the software package must have a strict system of access to information: each user gets only into “his” department and the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 119 www.americanjournal.org master has access to his information (for example, to applications for technical inspection, and the planner to the general repair schedule, summary reports on readiness for repairs, etc.) [22-26]. 3. what state of the equipment needs to be displayed? of course, the diagrams should display all the results of monitoring and measuring the condition of the equipment: vibration levels according to the results of vibration diagnostics, the thickness of the walls of pipelines and apparatus according to the results of thickness gauging, properties (ageing) of metals according to the results of metallography, tightness of the fittings (“holds/does not hold” and how much “does not hold”) "), leakage levels, i.e. where and how much it passes through, the state of thermal insulation, etc. the program used must generate a measurement scheme, indicating, for example, in which places it is necessary to measure the thickness of the walls of an elbow or pipe branch, calculating the frequency of diagnostics of devices and pipelines, which are carried out based on gost, rd and other standards [6, 7]. 4. it is important to record warehouse records and requests for the purchase of materials. 5. energy resources are accounted for, actual consumption is measured, possible deviations from the norm are recorded, the state of the metering devices is verified by the state, and metrological support for measurements is carried out. why is a diagram of the specific location of metering devices being created, indicating their purpose, type, and date of last and previous verification? the operating condition of the devices and the compliance of the operating parameters with the calculated ones are monitored. measures are taken promptly to eliminate deviations or malfunctions. 7. loss rates and their reduction. 8. problem. advanced training, and personnel training schedules are a problem. centralized computer accounting of all the above problems and shop-by-shop accounting of its complete shop information, solution. creation by the system of access to information: each user gets only into “his” department and to his information the master, for example, to requests for maintenance, and the planner to the general repair schedule, summary reports on readiness for repairs, an accountant for financial matters, etc. 9. financial position of the enterprise. accounting, cost accounting, product costs, and cost analysis must be carried out systematically throughout the year to identify internal production reserves and reduce them. it is obvious that the purpose of this accounting is the production activity of the enterprise as a whole and its structural divisions (responsibility centres), and its main objects are costs, costs and results of activity of both the entire enterprise and its individual structural divisions production, workshops, sections, departments, etc. proper distribution of costs among responsibility centres will allow the enterprise to minimize costs [8]. summarizing the above, we can say that a computerized maintenance management system is based on a software complex that displays the real state of the equipment and includes a database of enterprise equipment, modules for planning maintenance and preventive maintenance, filing requests for repairs, warehouse accounting modules and applications for the purchase of materials, financial accounting. thus, based on the above reasoning, it can be stated that the essence of automated accounting is the provision of all levels of data management necessary for making management decisions on planning, control, and generation of information that serves as a means of communication within the enterprise. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 120 www.americanjournal.org moreover, automated accounting information must be based on financial information. at the same time, it should be more detailed and not necessarily expressed in monetary terms. based on the above, the following main management and accounting functions can be distinguished: 1) operational management of the enterprise; 2) operational control and evaluation of the enterprise’s performance; 3) planning and coordination of the future development of the enterprise based on analysis and evaluation of the results of the enterprise’s activities. at the same time, the structure of management and accounting, both in theory and in practice, follows from the needs of the management apparatus in three types of accounting information and represents: 1) production accounting (traditional production cost accounting and costing); 2) planning and control of costs and results; 3) accounting and analytical support for management decisions. the main characteristics of management accounting: are flexibility; a clear focus on the final result (constant comparison of costs, output and results in all areas and segments of activity, structural divisions, and responsibility centres); operating with different cost categories: full, standard, variable, marginal; isolation, autonomy to maintain trade secrets [9, 10]. conclusions a modern computerized enterprise management system allows the enterprise to create a system for continuous online monitoring of the condition of equipment with its display on technological diagrams based on appropriate software, a qualitatively new system for monitoring equipment and the production process with significant economic effects. the advantage of modern computerized automated control systems is that the enterprise can influence not only the overall production costs but also the selling price of products. thus, the volume of the enterprise’s gross profit is regulated, which is reflected in the cost of each type of petroleum product. in this connection, the use of modern computerized automated control systems allows us to avoid the negative consequences of distortion of the cost of certain types of products that arise in the process of making management decisions at oil refineries. thus, production management based on digital information from automated control systems can be considered as an accounting subsystem that combines accounting, analysis and control and provides information for making management decisions using modern digital information technologies, which certainly makes it an integral part of the enterprise’s economy. one of the main requirements for the software package should be package configuration, i.e. presence of adjustment tools for new indicators. in this case, the problems of the emergence of new indicators disappear, the types of which can be entered and configured without replacing the software package. it is also necessary that the program be flexible, open and systematic. this means that it is possible to enter new data into it without making changes to the structure and keep records at each stage. the software product must be reliable and versatile. versatility makes it possible to take into account the peculiarities of production and other areas of activity. the program should be universal, and not require cumbersome and complex settings, and at the necessary moment from this program you can extract from this program the price list form necessary for managers, the financial director profit analysis, the accounting department calculation of sick leave or vat declaration, etc. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 121 www.americanjournal.org references 1. germash v.m., malyshev yu.m. technical progress and increasing the efficiency of oil refining production. ufa: bashkir book publishing house, 1980. 336 p. 2. zimin a.f., germash v.m. economic assessment in quality management at an oil refinery. ufa, 1994. 294 p. 3. konoplyanik a. on oil prices and oil derivatives // economic strategies, 2009, no. 2. pp. 20-22. 4. paliy v.f. basics of calculation. m.: finance and statistics, 1987. 136 p. 5. pardaev a.kh. boškarów usobi. ukuv kullanma. t.: “academy” nashriyoti, 2002. 176-b. 6. regulations “on the composition of costs for the production and sale of products (works, services) and on the procedure for generating financial results”, approved by the cabinet of ministers of the republic of uzbekistan on february 5, 1999. no. 54. 7. tkach v.i., tkach m.v. management accounting: international experience. m.: finance and statistics, 1994. 270 p. 8. kholbekov r.o. ishlab chikarish uisobini tashkil kilish tamoyillari va usubiyoti-t.: “fan”, 2005. 198 b. 9. kholbekov r.o., kholbekova f.r. problems of theory and stages of improving cost accounting. current issues of improving accounting, statistics and taxation of an organization. tambov, february 17, 2017. pp. 30-33. 10. global derivatives [electronic resource]. url:https://globalderivatives. nyx.com/en/nyseliffe. 11. atabaeva z.a. (2022, march). the accounting policy of the organization and its connection with tax planning. e conference zone, 35-38. 12. kuter m.i. introduction to accounting: textbook m.: infra-m, 2018. 522 p. 13. national accounting standards of the republic of uzbekistan (nas). website about accounting legislation.http://nsbu.uz/. 14. atabayeva z.a. (2022). accounting policy of the organization and its connection with tax planning. e conference zone, 35–38. retrieved from http://econferencezone.org/index.php/ecz/article/view/60 15. атабаева, з. а. (2022). дистанционные образовательные технологии в сфере подготовки специалистов высшего образования. ta'lim va rivojlanish tahlili onlayn ilmiy jurnali, 261-266. 16. атабаева, з. а. (2022). применение информационных технологий в бухгалтерском учете. periodica journal of modern philosophy, social sciences and humanities, 13, 1-6. 17. атабаева, з. а., & махкамова, с. г. (2022). цифровая бухгалтерия–это современные технологии и высококвалифицированные специалисты. архив научных исследований, 2(1). 18. атабаева, з. а. (2022). дистанционные образовательные технологии в сфере. архив научных исследований, 4(1). 19. abduzhalilovna, a. z. (2022). distance educational technologies in the sphere of training of specialists in higher education. innovative technologica: methodical research journal, 3(06), 96-101. 20. atabayeva, z. a. (2022). internal control as one of the functions of enterprise management. international journal of advance scientific research, 2(06), 15-21. 21. атабаева, з. а. (2022). меры по восстановлению потерянных объёмов природного газа при учёте бытовыми газовыми счётчиками, потребления природного газа населением. oriental renaissance: innovative, educational, natural and social sciences, 2(4), 266-275. https://globalderivatives/ http://nsbu.uz/ http://econferencezone.org/index.php/ecz/article/view/60 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 122 www.americanjournal.org 22. абдуллаева, б. ю. (2021). особенности организации бухгалтерского учета и аудита в корпоративном управлении. in бухгалтерский учет: достижения и научные перспективы xxi века (pp. 7-9). 23. атабаева, з. а., & имомов, ш. х. (2022). информационно бухгалтерское обеспечение системы операций внутри корпоративных образований. european journal of interdisciplinary research and development, 10, 415-421. 24. yuldashevna, a. b. (2021). the digital economy as a key factor in the formation of a favourable investment climate. researchjet journal of analysis and inventions, 2(12), 1-6. 25. atabayeva, z. a. (2022). management of the process of procurement activities of the enterprise. british journal of global ecology and sustainable development, 11, 1-5. 26. abdujalilovna, a. z. (2022). measures to restore the loss of natural gas when accounting for household gas meters, natural gas consumption by the population. international journal of management and economics fundamental, 2(06), 5-10. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 45 | p a g e effective open-minded thinking and its impact on strategic decision-making: an analytical study of the opinions of senior leaders at wasit university hatem kareem mohammed, saad mosa mahmeed al-ogaili mejbel isheer meteab al-matrood business administration department, college of administration and economics, wasit university, wasit, iraq corresponding author: h.mohammed@uowasit.edu.iq , mmitieb@uowasit.edu , s.mahmeed@uowasit.edu.iq a b s t r a c t k e y w o r d s the study aimed to demonstrate the effect of effective opportunistic thinking (flexible thinking, divergent thinking, constructive thinking and categorical beliefs) on strategic decisions of university of wasit. to reach this goal, we relied on the descriptive analytical approach to describe the variables of the study (effective open thinking, strategic decisions). in addition, to analyzing the data collected from (45) individuals who represented the study sample, namely the senior management of university of wasit (the university president and his assistants, the college dean and his assistants). the questionnaire used as the main tool for collecting data and then analyzing it using the statistical program (spssv.23) in order to reach the results of the study. the study conclusions of the study was that results of the statistical analysis showed that the senior management of wasit university has the ability to manage and think positively and openly in order to reach an effective strategic decision. one of the most important recommendations that came out of the study was enhance aspects of intellectual and effective openness on a sustainable basis in order to reach strategic decisions capable of developing university of wasit. effective open thinking, flexible thinking, divergent thinking, constructive thinking, categorical beliefs, strategic decisions introduction recently, the world has witnessed a transition from the industrial era to the knowledge era. the organization must pay attention to its human resources, carry out its activities, and provide the appropriate climate to fully perform its tasks as a mastermind and primary source of knowledge. organizations often find it difficult to translate this knowledge and share it among their different employees. this hinders organizational progress and prevents the achievement of excellence and american journal of business management, economics and banking volume 19 december, 2023 p a g e | 46 www.americanjournal.org progress that benefits individuals and society. the higher education sector is one of the most important sectors that the government must support and strive to achieve. developing it as a source of human resources, as individuals are always looking for institutions that provide the best educational services to enrich their minds, increase their knowledge, and prove their role in society. the most important reasons for transformation is that the organization can improve its performance, the inability to increase the quality of knowledge is the incommensurability of knowledge and the lack of employee awareness, and the ability of decision makers and policy makers to achieve the goals and objectives of the organization and solve problems. the knowledge that organizations need to extract and activate in order to be able to reach sound strategic decisions that can achieve the goals and objectives of organizations and the ability to solve problems that hinder their movement. thus, strategic decisions are decisions made in the long term and are affected by the external environment. decision makers must have environmental knowledge because it is the basis of its sustainability and continuity. organizations work to be able to predict the future and make decisions that are consistent with organizational goals. the first section: study methodology first: the study problem: the challenges that facing organizations were manifested in a lack of awareness and utilization of knowledge. it represents the core and basis of strategy making, strategic decision-making and ensuring service quality. open and effective thinking may be rare among decision makers in organizations. this leads to rigidity in the approach their use and lack of flexibility, the emotional side embodied in the rebellion of decision makers, the cognitive side embodied in stubborn opinions, and the behavioral side embodied in arrogance and escaping the situation. positives people are very systematic and not subject to subjective tendencies. instead, they are sensitive to the external stimuli encounter in daily life. in this case, the current research includes a psychology called the human level of open-mindedness, which considers the knowledge of the decision maker to be the goal of the profession, and the shadow that exists. this is considered an important topic in an era where the individual needs to make multiple decisions and in all his university and life activities. second: the study importance: the importance of the study is evident in the following points: 1ensuring the quality of higher education and the need for open thinking, which constitutes the largest percentage of the total knowledge available to the institution and requires its development, extraction and use, strategically identifying the role of effective open thinking in decisions and solving problems as needed. 2open thinking and knowledge are the essence of the success of organizations of all types and a source of competitive advantage. 3strategic decisions enable organizations to flourish and achieve their goals effectively in the long term. third: study objectives: the purpose of the study was to determine the concepts related to effective open thinking and knowledge and their impact on each specialty of the advanced staff of university of wasit, and the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 47 www.americanjournal.org effective relationship with strategic decision-making. as well as, understand the concepts of strategic decision making, its characteristics, and what is most important. concepts related to the quality of education and concepts to identify the degree of awareness of the advanced staff of wasit university and quality assurance on tacit knowledge, how to use strategic decisions, and the direct and indirect impact of knowledge on strategic decisions in the presence of variables. one of the motivations for choosing this topic was the critical importance of the role of effective open-minded thinking in strategic decisions. it is the real capital of the organization, and the essence that distinguishes because it guarantees the quality of outputs that managers rely on in creativity and production. their decisions were combined with the organizational lack of awareness in strategic decision making, intrigues and expands our knowledge about this topic as a discipline in business management. fourth: hypothetical outline of the study figure (1) hypothetical outline of the study fifth: study hypotheses 1there is no statistically significant effect of flexible thinking on strategic decisions. 2there is no statistically significant effect of divergent thinking on strategic decisions. 3there is no statistically significant effect of constructivist thinking on strategic decisions. flexible thinking contrarian thinking constructive thinking categorical beliefs strategic decisions american journal of business management, economics and banking volume 19 december, 2023 p a g e | 48 www.americanjournal.org 4there is no statistically significant effect of categorical beliefs on strategic decisions. sixth: study population and sample: the population and sample of the study consists of the advanced staff of the university of wasit. it consists of the university president, two assistants, deans of colleges (15), and assistant deans (30). the total number was (48). the questionnaire was distributed to this group, and the number of questionnaires retrieved and valid for statistical analysis was (45). the questionnaire was analyzed using the statistical analysis program (spss v.23). the second section: the theoretical aspect of the study effective open thinking plays an important role in the success of decision-makers inside and outside institutions, because their activities in missions and life situations are the products of their thinking and the extent of their success or failure is determined. therefore, learning thinking skills for them provides decision makers with the tools they need so that they can deal effectively with the information or variables that appear in the future. first: effective open thinking 1the concept of effective open thinking effective open thinking is a person’s belief in his ability to appreciate modern evidence that conflicts with his past beliefs, and to slow down in examining obstacles and spend sufficient time resolving obstacles before abandoning them, and taking into account the opinions of others when building his opinions and beliefs (haran et al., 2013). chen, (2015) is a person’s belief in his ability to reflect and his way of thinking and seriously search for modern information that conflicts with the person’s past beliefs and ideas, actively seeking to process information that conflicts with his beliefs deeply and without bias, and that will be ready to change his past thoughts and beliefs after carefully considering the beliefs that conflict with his thoughts. 2characteristics of effective open thinking: athe need for knowledge: this characteristic reflects the desire to exert maximum energy, effective mental effort, and a high level that leads to good organization and detail of what is planned and evaluation of information within the circle of the thinking process. bdetermination or perseverance: this characteristic is based on making exceptional efforts to achieve the desired goals. cmaximization versus satisfaction: maximization is a behavior aimed at achieving or obtaining the highest expected benefit from several alternative options or searching for the best options. satisfaction is often associated with the use of heuristics in making judgments and decision making and is expected to be more susceptible to bias. (haran et al., 2013). dimensions of effective open thinking aflexible thinking from a sociological perspective, flexible thinking is viewed as the ability of an individual in a group to collectively evaluate his or her behavior, and make the required adjustments in order to perform effectively. the oecd has viewed flexibility and adaptability as examples of core competencies in the context of cooperation and teamwork. flexibility is conceptualized as a willingness to make the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 49 www.americanjournal.org necessary compromises in order to achieve the group's common goal. the individual is noted for being flexible in incorporating feedback effectively, and dealing positively with praise, setbacks and criticism. it is described as the ability to understand, negotiate and balance diverse view points and beliefs to arrive at practical solutions, especially in multicultural settings. personal flexibility positively affects teamwork and members' ability to cooperate. (barak and levenberg, 2016) in the context of education, flexible thinking is a core competency needed to adapt to new learning environments, transfer knowledge to new situations, and understand and solve unfamiliar problems (mccomb and compton, 2007) bdifferent thinking it is a concept in psychology that involves the individual's tendency to think of possible alternatives to life events. it is a feature of the conscious mental landscape and shows the ability to enjoy alternative possibilities early on that have actually occurred, and these events are always in the past. in other words, it is ideas about alternatives to past events, that is, ideas about what could have been, which suggests that these ideas can be best explained in terms of their role in regulating behavior and improving performance (epstude and roses, 2008). cconstructive thinking constructive thinking is an indicator of intelligence related to experimental systems and indicates the extent to which an individual is able to learn from previous experiences. the way of thinking was enhances his effectiveness in life and helps in solving daily problems, reducing effort and stress as much as possible without harassing others (o'bryan, 2002). constructive thinking is considered one of the most important types of thinking and is based on the use of a high percentage of the learner’s automatic thoughts, that is, their occurrence unintentionally. constructive thinking refers to the degree to which the learner facilitates the solution of problems that he may encounter in daily life with the least amount of stress and pressure possible, and in this way the main elements of thinking are achieved. a good builder is: 1accept what cannot be changed. 2change what can be changed. 3knowing the difference between the two (zahavy and somech, 1999). dsectarian beliefs beliefs are the basic coherence within an explanation, and represent things that an individual might accept as true. it represents the system of all the ideals, expectations and trends of the individual, in addition to the emotional and subconscious aspects that the individual may accept at a time such as the reality of the sector in which he lives. it dealt with individuals’ representation of information and types of cognitive styles. this is because the method within thinking that is used by the individual to adapt side by side to side from various life situations and the sensory resources coming from various stimuli. it adopts the dogmatic point of view. the cognitive component of the dogmatic approach consists of the belief, concepts, and perception that a person holds about some other people. belief represents the news and knowledge a person has about a subject. some of it links a topic and a specific characteristic that distinguishes this topic. belief is the emotional acceptance of a principle or issue based on the existing arguments that support this acceptance. the studies believe that these personal arguments for belief are difficult to choose, and that the individual has varying certainty in these beliefs. this refers to the way every individual has a certain american journal of business management, economics and banking volume 19 december, 2023 p a g e | 50 www.americanjournal.org degree of confidence in beliefs, and here the difference between the open-minded dogmatist and the closed-minded non-dogmatist appears, as in the way of dogmatism we discover that he has high confidence in his personal beliefs, which he does not give up or change (saroglou, 2002). second: strategic decisions 1the concept of strategic decisions leaders' cognitive depend on their experiences, knowledge, and values, since such experiences, knowledge, and values determine how managers request and interpret available information. leaders' cognitive can ultimately play an important role in shaping strategic decision-making processes. in general, female and male managers may differ in cognitive frameworks, so principal diversity in terms of gender is likely to have a different impact on strategic decision making processes (campos and zuniga, 2022). knowledge has a particularly close role in strategic decision making due to the centrality of metacognition in the effectiveness of learning and in goal planning, adaptation and implementation. the concept of metacognition refers to the highest level, which includes knowledge and awareness about cognitive phenomena. in other words, it is the ability to think about cognitive processes related to (goals) or tangible goals (robret and sharfman, 2011). the quality of implementation and strategic decision is considered the essence of strategic decisions, as a measure of the success of the decision, as it reflects how decision makers evaluate the comprehensive quality of the relevant issues related to the strategic decision and its effects on organizational performance (al-hashimi and schwarz, 2022). good formulation of strategic decisions alone does not guarantee success unless they are implemented effectively (winter, 2012). 2strategic decision making: the process of making decisions is one of the basic tasks of managers. it is considered the essence of crisis management, because the amount of success that institutions can achieve depends primarily on the ability and efficiency of decision makers in making appropriate decisions (ali, 2021). strategic decision is a major concern for institutions, including modern institutions, and in order to be effective in strategic decision making, they must possess cognitive experience as well as vision about the external environment (robert and sharfman, 2011). it is concerned with studying the problem of a complex nature. it also determines the general trends of the institution and deeply influences its future (al-yamen, 2013). characteristics of strategic decision: strategic decisions are distinguished from other decisions by their comprehensiveness and the long range cover, which is why the strategic decision maker must be familiar with the basic characteristics of strategic decisions: acentralization: in general, strategic decisions are made at the highest administrative levels represented by the board of directors or the general managers and their assistants because of their knowledge of the institution’s capabilities and resources, as well as the environmental conditions surrounding it. blong-term: the strategic decision covers a long period of time, as the strategic decision extends for some cases to occupy the entire life of the organization. (karima and nour al-huda, 2022) crarely: the strategic decision is characterized by its rarity, as it is unusual and has no precedent or similarity to follow. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 51 www.americanjournal.org ddirected: the strategic decision lays the foundation for smaller decisions and future activities in the organization. cinterconnected: the strategic decision is related to large resources and requires a large commitment from individuals at all levels (wheelen et al, 2017). the third section: the practical aspect of the study first: description and diagnosis of the variable of effective open thinking table (1) shows that the criteria for statistical description of the research sample are responses, represented by the weighted arithmetic mean. the standard deviation and the level of the response towards the variable of effective open thinking. it is noted the dimension (constructive thinking) obtained the highest arithmetic averages was 3.52, and with a standard deviation was 1.088. the consistency and harmony of the research sample’s answers shows the direction of this dimension, and within the high response level. however, the dimension (flexible thinking) obtained the lowest arithmetic average which was 2.78, and a standard deviation was 1.329, showing the consistency of the answers of the individuals in the research sample and within a moderate response level. according to the above, the overall average for the variable (effective open thinking) was 3.23, with an overall standard deviation 1.210. this dimension received a moderate response level. it becomes clear to the researcher through the presented paragraphs that the sample has the ability to contemplate, think, research, and find everything new, even if this information conflicts with the past beliefs and ideas that these administrative leaders of wasit university, but within certain limits that reflect the opinion of part of the sample. table (1) means, standard deviations, answer level, and ordinal significance of the effective open thinking variable (n= 45) level means standard deviations answer level ordinal significance flexible thinking 2.78 1.329 moderate 4 contrarian thinking 3.39 1.214 moderate 2 constructive thinking 3.52 1.088 high 1 categorical beliefs 2.99 1.223 moderate 3 averege 3.17 1.213 moderate second: describing and diagnosing the variables of strategic decisions table (2) shows that the data for the statistical description of the strategic decisions variable. this table shows that the university makes decisions based on its vision and mission. it obtained the highest average of 4.01 with a standard deviation of 6.99, showing the consistency of the answers of the individuals in the research sample, and within a high response level. but, the university involves employees in the decision-making process received the lowest mean 3.66 and a standard deviation 1.035, showing the consistency and harmony of the answers of the individuals in the research sample towards this paragraph and within the high response level. according to the results, the overall average for the strategic decisions variable was 3.80 with a standard deviation 1.006. it becomes clear that through the answers of the individuals in the research american journal of business management, economics and banking volume 19 december, 2023 p a g e | 52 www.americanjournal.org sample, that wasit university, the study sample, is based on knowledge foundations and high experience in making strategic decisions. table (2) means, standard deviations, response level, and ordinal importance of the strategic decisions variable (n=45) phrase means standard deviations answer level ordinal significance the university analyzes and processes data to make decisions 3.77 1.23 high 6 the university uses non-institutional parties to make decisions 3.88 1.44 high 2 the university involves employees in the decision-making process 3.66 1.035 high 9 the university makes decisions based on its vision and mission 4.01 0.699 high 1 the university makes its decisions based on experience 3.85 0.944 high 5 the university makes the most appropriate decision among the many available options and compares them 3.69 1.035 high 7 subordinates have the necessary knowledge to implement decisions in the right way 3.81 0.966 high 4 stay away from external influences when making strategic decisions 3.67 1.079 high 8 there is a specific methodology in making strategic decisions 3.84 0.944 high 3 average 3.80 1.006 high third: testing the study hypotheses 1the first main hypothesis: there is no statistically significant effect of flexible thinking on strategic decisions. table (3) shows the results of simple linear regression. for the purpose of assessing the impact of flexible thinking on strategic decisions, the following is clear: athe calculated (f) value for the estimated model was 7.98 at a significance level of 0.01. accordingly, the alternative hypothesis is accepted and the null hypothesis is rejected. this means that there is a statistically significant effect of flexible thinking in strategic decisions with a degree of confidence 99%. table (3) f value calculated for the influence relationship between flexible thinking and strategic decisions (n = 45) aanova model sum of squares df mean square f sig. 1 regression 2.631 1 2.631 7.980 b.005 residual 54.078 43 .330 total 56.709 44 a. dependent variable: strategic decisions b. predictors: (constant): flexible thinking american journal of business management, economics and banking volume 19 december, 2023 p a g e | 53 www.americanjournal.org b: it is clear from the value of the coefficient of determination r2 of 0.046 that flexible thinking is able to explain 4.6% of the changes that occur in strategic decisions of wasit university. the percentage 94.4% is due to the contribution of other variables not included in the study model. table (4) calculated r2 value for the influence relationship between flexible thinking and strategic decisions (n = 45) model summary model r r square adjusted r square std. error of the estimate 1 .215a .046 .041 .57423 a. predictors: (constant), flexible thinking the second main hypothesis (there is no statistically significant effect of different thinking on strategic decisions). a the calculated value of (f) for the estimated model reached 87.958 at a significance level of 0.01. accordingly, the alternative hypothesis is accepted and the null hypothesis is rejected. this means that there is a statistically significant effect of different thinking on strategic decisions with a degree of confidence 99%. table (5): f value calculated for the influence relationship between divergent thinking and strategic decisions (n = 45) anovaa model sum of squares df mean square f sig. 1 regression 19.797 1 19.797 87.958 .000b residual 36.912 43 .225 total 56.709 44 a. dependent variable: strategic decisions b. predictors: (constant): flexible thinking b: it is clear from the value of the coefficient of determination (r2) of .349 that divergent thinking is able to explain 34.9% of the changes that occur in strategic decisions. the percentage 65.1% is due to the contribution of other variables not included in the study model. table (6) r2 value calculated for the influence relationship between divergent thinking and strategic decisions (n = 45) model summary model r r square adjusted r square std. error of the estimate 1 .591a .349 .345 .47442 a. predictors: (constant), contrarian thinking american journal of business management, economics and banking volume 19 december, 2023 p a g e | 54 www.americanjournal.org the third main hypothesis (there is no statistically significant effect of constructivist thinking on strategic decisions) a: the calculated value of (f) for the estimated model reached 90.638 at a significance level of 0.01. accordingly, the alternative hypothesis is accepted and the null hypothesis is rejected. this means that there is a statistically significant effect of the dimension of constructive thinking in strategic decisions with a degree of confidence 99%. table (7) f-value calculated for the influence relationship between constructive thinking and strategic decisions (n = 45) anovaa model sum of squares df mean square f sig. 1 regression 19.459 1 19.459 90.638 .000b residual 34.994 43 .215 total 54.452 44 a. dependent variable: strategic decisions b. predictors: (constant), constructive thinking b: it is clear from the value of the coefficient of determination (r2) of .357 that constructive thinking is able to explain 35.7% of the changes that occur in the dependent variable of strategic decisions. the percentage 64.3% is due to the contribution of other variables not included in the study model. table (8) r2 value calculated for the influence relationship between constructive thinking and strategic decisions(n = 45) model summary model r r square adjusted r square std. error of the estimate 1 .598a .357 .353 .46334 a. predictors: (constant), constructive thinking 4the fourth main hypothesis (there is no statistically significant effect of categorical beliefs on strategic decisions) first: the calculated f value for the estimated model reached 317.713 at a significance level of (0.01). accordingly, the alternative hypothesis is accepted and the null hypothesis is rejected. this means that there is a statistically significant effect between categorical beliefs and strategic decisions with a degree of confidence 99%. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 55 www.americanjournal.org table (9) calculated f value for the influence relationship between categorical beliefs and strategic decisions (n = 45) anovaa model sum of squares df mean square f sig. 1 regressio n 35.989 1 35.989 317.71 3 .000b residual 18.464 42 .113 total 54.452 43 a. dependent variable: strategic decisions b. predictors: (constant), categorical beliefs second: the value of the coefficient of determination (r2) was .661, meaning that categorical beliefs explain 66.1% of the changes that occur in strategic decisions. the remaining percentage 33.9% is contributed by other variables not included in the model. table (10) the r2 value calculated for the influence relationship between categorical beliefs and strategic decisions (n = 45) conclusions the study concludes that the senior management of wasit university has the ability to manage and think positively and openly in order to reach everything new and not adhere to stereotypical or routine thinking. the senior management of the university of wasit is based on knowledge foundations and high experience in making strategic decisions that help the university keep pace with developments and environmental changes with its various elements that surround the university. wasit university has open and outside-the-box thinking at times, and this thinking helps senior management to make strategic decisions in a way that is consistent with the university’s aspirations for anticipating the future. some factional ideas influence the strategic decisions taken by the university of wasit, and that the percentage of this influence is moderate. references 1. ali, muhammad al-sayyid abu al-futouh ali, factors affecting strategic decision-making in confronting the corona virus and its effects on reducing the spread of the virus, 2021. 2. oath, gesture, vigilance and its importance in making strategic decisions, doctoral thesis, published. model summary model r r square adjusted r square std. error of the estimate 1 .813a .661 .659 .33656 a. predictors: (constant), embeddedness : categorical beliefs american journal of business management, economics and banking volume 19 december, 2023 p a g e | 56 www.americanjournal.org 3. karima, haddou, and nour al-huda, hajam, 2022, administrative empowerment and its role in achieving the quality of strategic decisions, ahmed draya adrar university, faculty of economic, commercial and management sciences, department of management sciences, published master’s thesis. 4. barak, m., & levenberg, a. (2016). flexible thinking in learning: an individual differences measure for learning in technology-enhanced environments. computers & education, 99, 39-52. 5. mccomb, s. a., green, s. g., & compton, w. d. (2007). team flexibility's relationship to staffing and performance in complex projects: an empirical analysis. journal of engineering and technology management, 24(4), 293-313. 6. o'bryan, m. (2002). where did they learn to think that way? parental modeling of dysfunctional and constructive thinking. university of cincinnati. 7. drach-zahavy, a., & somech, a. (1999). constructive thinking: a complex coping variable that distinctively influences the effectiveness of specific difficult goals. personality and individual differences, 27(5), 969-984. 8. epstude, k., & roese, n. j. (2008). the functional theory of counterfactual thinking. personality and social psychology review, 12(2), 168-192. 9. saroglou, v. (2002). beyond dogmatism: the need for closure as related to religion. mental health, religion & culture, 5(2), 183-194. 10. campos-garcía, i., & zúñiga-vicente, j. á. (2022). strategic decision-making in secondary schools: the impact of a principal’s demographic profile. leadership and policy in schools, 21(3), 543-564. 11. robert mitchell, j., shepherd, d. a., & sharfman, m. p. (2011). erratic strategic decisions: when and why managers are inconsistent in strategic decision making. strategic management journal, 32(7), 683-704. 12. al‐hashimi, k., weerakkody, v., elbanna, s., & schwarz, g. (2022). strategic decision making and implementation in public organizations in the gulf cooperation council: the role of procedural rationality. public administration review, 82(5), 905-919. 13. winter, s. c. (2012). implementation perspectives: status and reconsideration. the sage handbook of public administration, 265-278. 14. haran, u., ritov, i., & mellers, b. a. (2013). the role of actively open-minded thinking in information acquisition, accuracy, and calibration. 15. chen, v. (2015). “there is no single right answer”: the potential for active learning classrooms to facilitate actively open-minded thinking. collected essays on learning and teaching, 8, 171180. 16. wheelen, t. l., hunger, j. d., hoffman, a. n., & bamford, c. e. (2017). strategic management and business policy (vol. 55). boston: pearson. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 26 www.americanjournal.org project teams and their role and place in government organizations karimova diyora aybekovna a b s t r a c t k e y w o r d s this article explores the role and significance of project teams in government organizations, focusing on their contributions to achieving organizational goals, fostering innovation, and improving service delivery. through an examination of existing literature, methodological analysis, and case studies, this study highlights best practices, challenges, and strategies for optimizing project team performance in the public sector. project teams, government organizations, public sector, innovation, service delivery, team performance, organizational goals. introduction project teams play a pivotal role in the effective functioning of government organizations. in the context of increasing complexity and demand for efficient public services, projectbased approaches enable agencies to focus on specific goals, enhance accountability, and drive innovation. this paper examines the importance of project teams, their structure, and their impact within government organizations. this study employs a mixed-methods approach, combining qualitative and quantitative techniques. data collection involved: 1. surveys of government employees across various departments. 2. case studies of successful project teams in local, state, and federal agencies. 3. analysis of project outcomes using performance indicators such as timeliness, budget adherence, and stakeholder satisfaction. the qualitative data was analyzed using thematic analysis, while quantitative data was processed using statistical tools to identify patterns and correlations. project teams in government organizations play a crucial role in driving innovation, implementing policies, and delivering public services efficiently. below is an overview of their role and place within such organizations: role of project teams in government organizations policy implementation: project teams turn government policies into actionable plans and oversee their execution. american journal of business management, economics and banking volume 32 january 2025 p a g e | 27 www.americanjournal.org for example, they may implement projects related to infrastructure development, education reform, or public health campaigns. innovation and problem solving: teams often address specific challenges or areas needing modernization. they introduce new technologies, streamline bureaucratic processes, and improve service delivery. interdepartmental collaboration: project teams facilitate collaboration between various departments, agencies, and external stakeholders. this ensures resources and expertise are pooled to achieve common goals. monitoring and evaluation: teams assess the progress and impact of government projects, providing data-driven insights for decision-making. their findings help refine strategies and allocate resources more effectively. crisis management: during emergencies, such as natural disasters or public health crises, project teams coordinate rapid responses. they ensure alignment with overarching governmental priorities and legal frameworks. public engagement: many teams focus on engaging with citizens to ensure transparency, build trust, and gather feedback. this is critical for participatory governance and ensuring policies reflect public needs. place of project teams in government organizations structure: centralized teams: operate within ministries or key agencies to manage nationwide initiatives. decentralized teams: work within regional or local government units, focusing on localized implementation. ad-hoc teams: formed temporarily to address specific projects or crises. hierarchy: project teams are usually embedded within government departments or agencies, reporting to department heads or project sponsors. some may report directly to higher-level officials, such as secretaries, ministers, or interdepartmental committees. american journal of business management, economics and banking volume 32 january 2025 p a g e | 28 www.americanjournal.org interdisciplinary nature: teams often consist of members with diverse expertise, including policy analysts, project managers, legal experts, it specialists, and public relations officers. integration with government goals: they align their efforts with long-term governmental strategies, such as economic development plans, sustainable development goals (sdgs), or national security objectives. accountability and oversight: government project teams operate within strict accountability frameworks. they must adhere to laws, budgets, and timelines while ensuring transparency and effective use of public funds. examples of government project teams and their contributions infrastructure development: teams oversee the construction of roads, bridges, schools, and hospitals, ensuring projects meet quality and safety standards. digital transformation: teams manage initiatives like e-governance, digitizing public records, or implementing online citizen services. public health: teams organize vaccination drives, epidemic responses, or health awareness campaigns. environmental projects: project teams focus on sustainability initiatives, such as renewable energy programs or conservation projects. education and social welfare: teams may execute programs targeting literacy improvement, skill development, or poverty alleviation. by ensuring efficient execution of government policies, fostering collaboration, and driving innovation, project teams serve as pivotal instruments for achieving organizational and societal goals within government structures. the results underscore the potential of project teams to transform government operations, but also highlight persistent challenges. addressing these barriers requires targeted interventions, such as: training programs for team leaders on adaptive leadership and conflict resolution. american journal of business management, economics and banking volume 32 january 2025 p a g e | 29 www.americanjournal.org investments in technology to streamline communication and project management. policy reforms to reduce bureaucratic hurdles and enhance resource allocation. furthermore, fostering a culture of innovation within government organizations can empower project teams to experiment and implement novel solutions without fear of failure. conclusions project teams are instrumental in driving efficiency, innovation, and accountability within government organizations. to maximize their potential, the following strategies are recommended: establishing clear frameworks for project selection, execution, and evaluation. providing ongoing training and development opportunities for team members. encouraging collaboration through cross-departmental initiatives and knowledgesharing platforms. adopting flexible project management methodologies tailored to public sector needs. allocating sufficient resources and ensuring top-level support for project teams. by implementing these measures, government organizations can harness the full potential of project teams, delivering better services and achieving their strategic objectives. references 1. abbasi, g. y., & al-mharmah, h. (2000). project management practice by the public sector in a developing country. international journal of project management, 18(2), 105-109 2. baranskaya, a. (2007). project management in public administration of transitional countries. moscow state university.russia. 3. blomquist, t., hällgren, m., nilsson, a., &söderholm, a. (2010). project‐as‐practice: in search of project management research that matters. project management journal, 41(1), 5-16. 4. crawford, l., costello, k., pollack, j., & bentley, l. (2003). managing soft change projects in the public sector. international journal of project management, 21(6), 443-448. 5. dey, p. k. (2000). managing projects in fast track-a case of public sector organization in india. international journal of public sector management, 13(7), 588-609. 6. fineman, s. (2004). getting the measure of emotion-and the cautionary tale of emotional intelligence. human relations, 57(6), 719-740. 7. frasermoleketi, g. (2003). project management in the public sector. input by the minister of the department of public service and administration at the iqpc conference on project management in the public sector. retrieved from: http://www.polity.org.za/article/frasermoleketi-parliamentary-media-briefingfebruary-2003-19022003-2003-02-19 . american journal of business management, economics and banking volume 32 january 2025 p a g e | 30 www.americanjournal.org 8. kissi, e. and ansah, s.k., 2016. professional project management practices and its constraints in developing african countries: a literature review. covenant journal of research in the built environment, 1(2). american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 113 www.americanjournal.org assessment of employment and demographic development of the population of uzbekistan based on a non-traditional approach ismailov akmal makhsudovich professor of tashkent state university of economics, dsc. a b s t r a c t k e y w o r d s this article theoretically substantiates the primacy of interest in human activity. the application of the economic law of the primacy of interest in human labor activity is theoretically and methodologically substantiated and, based on the interest index, demographic issues in the republic of uzbekistan, indicators of economic activity and employment of the population are analytically studied. scientific proposals and recommendations have also been developed to increase employment and labor resources in the economic development of the country. interest, dominance of interest, interest index, demographic problems, economic activity of the population, employment, labor resources. introduction world experience shows that economic development does not fail to have an impact on the demographic processes of all countries. at the same time, demographic aspects are considered an important factor in increasing the level of employment of the population. in today's rapidly growing population, researching the scientific basis of this problem in our country is the need of the hour. that is why it is required to study in depth the role of regulation of demographic processes, which is one of the main factors affecting the socio-economic development of the country, and its role in increasing the employment of the population. in such conditions, the importance of implementing methods of regulating demographic processes in increasing the level of employment is increasing. in the world, special attention is paid to scientific research on the influence of demographic aspects on increasing the employment of the population. in this regard, scientific directions such as expansion of innovative types of employment, taking into account the needs of socio-demographic groups of the population, are important. today, in our country, in all sectors of the economy, special attention is paid to issues such as improving the distribution and qualitative composition of labor resources, increasing labor potential, changing the structure of employment, increasing the mobility of human resources, the length of working hours and demography. in the address of the president of the republic of uzbekistan shavkat mrziyoyev to the oliy majlis, "based on the in-depth analysis of the actual situation in the labor market in uzbekistan in the regions of our republic, the development of regional and sectoral american journal of business management, economics and banking volume 21 february, 2024 p a g e | 114 www.americanjournal.org programs to increase the level of employment of the population, the creation of new jobs "[1], they emphasized that comprehensive measures are being taken to develop state orders and set a quota of jobs for socially needy sections of the population and to reduce poverty. in order to solve these tasks, the deepening of scientific research in areas such as improvement of employment forms, assessment of demographic groups, improvement of employment regulation mechanisms in the labor market is of particular importance. when assessing demographic indicators and population employment in the country, it is considered appropriate to evaluate based on the interest index. in the implementation of such research, it is necessary to use new research methods for the analysis of population employment based on the approach of interest of activity, determination of interest coefficient and index of interest. the interest-based approach to the assessment of population employment, determination of the interest coefficient and interest indices allows to evaluate its qualitative and quantitative parameters and through this, to analyze the consequences of external influence on the level of population employment in a wider way. taking into account the interests of workers and employees, who in turn are a component of the labor potential, has an important place in increasing the employment of the population. human interest can be fully determined, and only when its constituent qualities are considered as elements of human interest, it will have the essence at the level of a material object. such an approach means that it is important today to interpret the concept of human interests in a broader way, to determine its specific features. however, the fact that a clear definition of the concept of human interests has not yet been given in the economic literature, only some of its aspects have been covered, increases the interest in this term. from this point of view, we will try to comprehensively approach the concept of human interests, analyze economic indicators by highlighting its various aspects. for example, due to mistakes and neglect made by a person, his mental state and health, mental-emotional state and many other aspects that have been ignored in the production process are a factor that directly affects economic processes. occurs. literature review from an economic point of view, it would be appropriate to consider the definition of the concept of human interests as the manifestation of personal qualities, characteristics and other similar aspects of people who are participants in economic processes under the influence of external factors. the mature economist a. smith in his book entitled "inquiry into the nature and causes of the wealth of nations" (1776) shows that "the main incentive that activates a person is personal interest"[2]. at this point, it can be said that human interests are an important link that determines the future of economic development. in our opinion, human interests are the sum of relations between things and events directly related to humans. a person is at the center of socio-economic processes in society, and all events and incidents in it take place directly and indirectly with the participation of a person. human interests consist of a system of different classes, strata and groups interacting with each other, and their activities and interactions ensure the progressive development of society. a one-sided study of the concept of human interests is an obstacle to the full disclosure of its economic content and essence. because the fact that a person is at the center of all things and events in human society and that all adopted laws are aimed at the benefit of a person requires special attention to be paid to its economic essence. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 115 www.americanjournal.org however, we think that human interests should be considered primarily as a person's attitude to external influences. as an explanation for this, it can be said that all economic processes are manifested and carried out in the form of "dominance of interest". such interests, in turn, can be divided into economic or material, social, spiritual, legal and other types. however, such a definition shows that there is no single economic law that reflects interest among economic laws. knowing that the law is a necessary, important, stable, recurring relationship between events [3], it shows that there should be an economic law of "predominance of interest" from the point of view of economic processes serving human interests. this is important in the operation of general economic processes. all people who have existed in the history of the development of society have organized their lifestyle based on a certain type of interest. we can categorize such interests as follows, according to the extent of their impact. research methodology human interests can be divided into groups such as personal, group or family, society, and divine interests. individual, i.e. the interest of a single individual, is a certain amount of personal interest in all activities performed by a person as a subject of economic processes, regardless of whether it is a worker or an employee, a manager or an employee, a buyer or a consumer. is supposed to act in personal interest, in turn, refers to the interests related to property, material wealth, health and mental health of a person. at this point, it should be mentioned that, taking into account that personal interest is focused on the protection of personal property, the form of "private property" should be included in the legislation of our country. this further strengthens the right of a person to work, while creating an opportunity to guarantee the inviolability of property formed from wages. because a person's ability to work belongs only to himself, and it is appropriate that the property formed in exchange for the income from the work should appear as a form of personal property. groupor family interest in terms of the fact that a person lives and works in a community by nature, he works for the benefit of his family, relatives or teammates, and acts from the point of view that their interest is superior to the interest of others. more than thatthe constant activity of a person in society creates the need to act in the interest of society and the state. where there is no benefit, there will be no development, and it is this benefit that fully manifests its essence in regulating the socio-economic system of the state and carrying out socio-economic reforms. thus, human interest is economically manifested as a person's influence on the economy. it is this effect that is formed in the form of human interests and it is appropriate to bring it as the next factor among the political, legal and organizational factors affecting the economy. we can see this in the way that all economic processes serve man, as a consumer or producer, man works for personal, group or community benefit. this has a direct impact on the quality of the manufactured products and the increase or decrease in income. when grouping human interests according to their purpose, we can divide them into economic or material interests, social interests, legal interests, spiritual or other types of interests. in this case, every action or activity of a person is aimed at a certain type of benefit. this refers to economic, social, legal, spiritual-cultural or other types of interests. based on the above, it can be said that taking into account the needs and desires of a person as a subject of economic processes creates the need to study his place in the economy in the form of human american journal of business management, economics and banking volume 21 february, 2024 p a g e | 116 www.americanjournal.org interests. studying the concept of human interests provides an opportunity to forecast its impact on the economy. we found it expedient to name such influence as human interests and conditionally define it as (m)-interest. we know that according to the law of "diminishing marginal utility" as an economic law, the utility of all human actions during a period decreases, but in our opinion, in the general period, human interests have the characteristic of increasing instead of decreasing utility. this is explained by the fact that when a person has some wealth, he is not limited by the amount of this wealth, on the contrary, he starts to acquire more wealth. that is, every person approaches any events and processes in terms of the superiority of his own interest, while events and processes that are not in the interest of a person are terminated or disappear. so, based on this situation, we can come to a theoretical conclusion that if a person is limited to one factor, i.e., material benefit, the benefit he receives from this material wealth will increase and the amount of satisfaction from it will decrease. in this case, it can be theoretically justified that with the increase of material wealth, the amount of satisfaction a person receives from it decreases. it can be concluded from this that the general benefit that all people receive from material wealth increases, and at the same time the amount of satisfaction they receive from it, that is, the amount of marginal satisfaction, also increases. shows. as an example, the benefit that each person receives from the work he does is less than the benefit he will receive from the next time he works. so in this: m1≤m2; m1= chn1.1+ chn1.2+ chn1.3+… +chn1.n; mn= chnn.1+ chnn.2+ chnn.3+… +chnn.n; mn= mn-1+ δmn; chn1= δon1 δq1 ; chn1≥chn2; here: mis the amount of interest, chn-limited profitability. as mentioned above, according to the law of "diminishing marginal utility", the utility of all human actions during a period decreases. δm1= m1 – m0; δm1= m1; δm2= m2 – m1; δm2≤ m2; δmn= m n – m n-1; δmn≤ mn; here: δm is the amount of marginal interest. as a result of the research, it can be said that in our general periodicity, human interests have the characteristic of increasing marginal utility, as opposed to decreasing marginal utility. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 117 www.americanjournal.org δon1= on1on0; δonn= on n – on n-1; umn= m1+ m2+ m3+… +mn; umn=∑ mnn n=0 ; here: on-is the amount of intermediate interest, umcommon interest. from the formula given above, we can see that the amount of intermediate interest represents all the constituent elements of a person during one period. the interest index of the economic activity of construction industry enterprises can be explained in the form of the following formula: min = kj/ko here: min is the interest index; kj indicator for the current year; ko is the indicator of the previous year. the impact of human interests on the economy can be explained in the form of the following formula: imn =(m1.2/m1.1+ m2.2/m2.1 ...+ mn.2/mn.1)/n here: imis the coefficient of interest; nis the number of interests. these coefficients can be explained by the fact that when 0≤imn<1 the benefit is low or absent, when imn=1 there is a normative benefit, when 1<imn is higher than 1 the law of increasing benefit applies. it can be seen from the given formula that determining the place of a person in the economy, that is, determining his influence on economic development, is important for determining the directions of development in the future. it is based on the study of the indicator of human interests that allows determining the amount of primary product production. let's say that the requirements for a person as a consumer of a product and such requirements can be given as requirements for the quality, price and appearance of the product. in this case, it is these indicators that determine how much and at what price the product can be sold and get a higher profit. therefore, determining the indicator of human interests is important for all sectors and areas of the economy, and it is important in determining the development trend of these sectors and areas. today, the human interests that ensure the "predominance of interests" are not considered as a single system or complex. but the importance of considering and evaluating human interests for all humanity is increasing day by day. it requires doing this using different methods and approaches. we can see that the presence of important qualities that form and determine interests makes a person think, make decisions and act within the framework of his interests (figure 1). the degree to which one or another type of these qualities is manifested in a person determines his interest. as a result, all areas and industries with human influence develop as a result of human interests. so, as long as not only the economic system, but also all relationships in the world express american journal of business management, economics and banking volume 21 february, 2024 p a g e | 118 www.americanjournal.org human interests of one kind or another, we will be able to determine the level and characteristics of economic development and make the necessary conclusions. for this reason, in order to understand and evaluate human interests more broadly, a structural structure of the qualities that influence and determine these interests has been developed. so, according to studies, determining the interests of a person requires to study it in 4 groups. these are qualities that define economic or material interest, qualities that define social interest, qualities that define scientific, political and legal interests, and qualities that define moral and potential interests.in this picture, the most necessary and important human qualities are selected, which are involved in the thinking, decision-making and implementation of all actions. we believe that this structure is made up of a complex of human qualities, and it is appropriate to call them the elements that make up human interests. these qualities are found in the nature of people in the form of a whole complex, they ensure a person's living and full socio-economic activity, as well as the formation of his behavior. the application of these qualities to all members of the labor team serves to unite this team towards a single goal, to improve the cultural, moral and spiritual environment. it shows that the effective employment of labor resources depends primarily on the level of professional skills and education, qualifications, spiritual-educational, moral aspects of workers and employees, and the ability to satisfy their socio-economic needs. the qualities of humanity in the "human, spiritual and moral values" part of the complex of human qualities of human interest are formed differently in everyone. from our side, we divided the adjectives reflecting human interests into 4 main groups and 46 adjectives. when choosing these qualities, we tried to choose the primary most important qualities that are necessary in the process of living and working. in turn, increasing the amount of these qualities also leads to the emergence of various complications. we tried to reveal the importance and essence of human qualities through the above picture. the qualities presented in the picture indicate what needs to be focused on for the harmonious development of people in all aspects. it is not a matter of more or less accumulation of qualities, but it is important that they are embodied, taking into account their optimal and necessary aspects. the wide application of the qualities in the complex to the labor team serves to unite the team towards a common goal, to unite forces, and to improve the moral and spiritual environment. to the successful operation of the enterprise and organization, to the highly effective joint activities of those working in it, to the qualifications, professional training and level of education, spiritual, educational, moral aspects, to the working and living conditions of the workers, material and spiritual shows that it depends on meeting their needs. during this period, as well as before, various measures are being taken to effectively use human resources, and efforts are being made to increase their utilization rate. only a few adjectives that are considered important are used in this. others were left out of the spotlight. however, if you look at the list of qualities in the picture above, there is no reason to say that one quality is more or less important than another. it is not in the more or less importance of human qualities, but in how they influence and motivate human activity. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 119 www.americanjournal.org figure 1. qualities defining human interests. the low level of using employees' opportunities and potential is largely not due to their lack of passion for work or lack of ability, but their inability to properly organize their work, which qualities should be used to improve it, or which qualities it is that they do not know that they are losing their opportunities by leaving them out of mind. therefore, it is necessary to carry adjectives denoting economic or material benefit qualities defining social interest qualities defining scientific, political and legal interests qualities defining moral and potential benefits devotion initiative organization responsibility discipline demanding activity hard work desire expediency experience qualification entrepreneurship entrepreneurship, etc advanced thinking social protection enthusiasm humility your highness wisdom ability expertise qualification desire for innovation professionalism straightness kindness honesty loyalty spiritual strength culture spiritual environment mutual trust and honesty availability of opportunities patience show care confirmation and so on freedom conscientiousness humanitarianism courtesy generosity willpower justice, etc ideation traceability and so on qualities defining human interests american journal of business management, economics and banking volume 21 february, 2024 p a g e | 120 www.americanjournal.org out measures to constantly increase the efficiency of qualities in the labor teams of workers and employees based on the schedule. analysis and results from the data of table 1 below, it can be said that the main socio-economic development indicators of the country were analyzed in the studied years 2010-2022 (table 1). according to it, it can be seen that the rate of growth of the gross domestic product in the studied period was equal to the average coefficient of interest of 1.22. in turn, it can be observed that during this period, the average coefficient of interest of the permanent population in the country was 1.02. in addition, in the studied period, the average coefficient of interest of the economically active population is 1.02, the average coefficient of interest of the country's labor resources is 1.01, and the average coefficient of interest of those employed in the economy is 1.01. it can be seen that table 1 the main socio-economic development indicators of the republic of uzbekistan [4] indicators 2010 2012 2014 2016 2018 2020 2022 average coefficient of variation gdp (billion soums) 78936.6 127590.2 186829.5 255421.9 426641.0 605514.9 888 341.7 1.22 permanent population (thousands) 28001.4 29555.4 30492.8 31575.3 32656.7 33905.2 35271.3 1.02 economically active population(thousa nd people) 12286.6 12850.1 13505.4 14022.4 14641.7 14797.4 15038.9 1.02 labor resources (thousands of people) 16726.0 17564.3 18048.0 18488.9 18829.6 19158.2 19517.5 1.01 number of jobs in the economy (thousands of people) 11628.4 12223.8 12818.4 13298.4 13273.1 13236.4 13706.2 1.01 including: agriculture, forestry and fisheries 3118.1 3251.7 3528.9 3646.7 3537.2 3499.2 3438.7 1.01 industry 1605.7 1669.5 1736.5 1802.4 1802.9 1809.5 1810.6 1.01 construction 1033.7 1105.7 1183.3 1263.6 1205.5 1305.6 1314.3 1.02 trade 1235.6 1305.6 1378.3 1452.4 1401.8 1405.4 1525.2 1.02 transport and storage 509.9 549.1 592.1 638.2 645.2 610.5 633.1 1.02 education 1102.0 1103.3 1104.7 1105.6 1111.7 1158.2 1268.7 1.01 health and social services 596.2 598.4 600.8 601.6 604.0 669.5 671.3 1.01 other types 2427.2 2640.5 2693.8 2787.9 2964.8 2778.5 3044.3 1.02 public sector 2410.2 2363.2 2324.7 2330.4 2427.0 2483.1 2540.0 1.00 non-governmental sector 9218.2 9860.6 10493.7 10968.0 10846.1 10753.3 11166.2 1.02 average monthly nominal salary (soums) 1064214.6 1542598.3 2227141,2 3204301,4 1.20 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 121 www.americanjournal.org in addition, in the period under study, the average coefficient of interest in the distribution of the population according to ownership forms, including in the public sector, had a stable indicator. the fact that the average monthly nominal wage interest rate was equal to 1.2 in the analyzed period also indicates that the nominal income of the population in the country has increased in proportion to the country's gdp. it should be noted that this indicator has a high growth rate compared to the permanent population. based on the analysis of the data of table 2 presented next, we will consider the correlation between the amount of gdp and the growth of the permanent population, economically active population, labor resources and the number of employed people in the economy. from the analysis of the data in this table, it can be seen that there is a close relationship between the country's gdp and the change in the permanent population. leads to an increase. at the same time, we can see that there is a close relationship between the permanent population of the country and the economically active population, labor resources and those employed in the economy. in turn, this means that the increase in the permanent population of the country is explained by the increase in the number of economically active population, labor resources, and the number of people employed in the economy. table 2 population and its employment in the republic of uzbekistandependent factor analysis [5] yim permanent population economically active population labor resources jobs in the economy yim 1.00 0.92 0.83 0.79 0.79 permanent population 0.92 1.00 0.98 0.96 0.96 economically active population 0.83 0.98 1.00 0.99 0.99 labor resources 0.79 0.96 0.99 1.00 1.00 jobs in the economy 0.79 0.96 0.99 1.00 1.00 in table 3 below, the analysis of factors related to the population and its employment in the republic of uzbekistan is carried out according to the index of interest. in this table, the gdp of the country is determined by the permanent population, economically active population, labor resources and employment in the economy. correlational analysis was carried out according to the index of interest. the interesting aspect of this table is that, as we have seen above, there is a close relationship between the country's gdp and the change in the permanent population, and when it is analyzed on the basis of the index of interest, it is generally correlated . it will be possible to see that the dependency does not exist. at the same time, when analyzing on the basis of the interest index, we can see that only labor resources have a high correlation with the increase of the country's gdp, and this shows that labor resources are an important factor in the increase of the country's gdp. in addition, from the analysis of the table, it can be seen that there is a very low correlation between the permanent population and the economically active population, labor resources and those employed in the economy, or there is no correlation at all. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 122 www.americanjournal.org table 3 population and its employment in the republic of uzbekistananalysis of related factors according to interest index [6] yim permanent population economically active population labor resources jobs in the economy yim 1.00 -0.20 0.28 0.68 0.21 permanent population -0.20 1.00 -0.30 -0.08 -0.18 economically active population 0.28 -0.30 1.00 0.46 0.50 labor resources 0.68 -0.08 0.46 1.00 0.52 jobs in the economy 0.21 -0.18 0.50 0.52 1.00 this, in turn, can be explained as follows, that is, the increase in the number of the population should not lead to an increase in the number of economically active population, labor resources, and the number of people employed in the economy. labor resources, forms part of the economically active population and, in turn, leads to an increase in the number of people employed in the economy. conclusions and suggestions in conclusion, it can be said that the assessment of demographic issues and population employment in the country on the basis of the interest index leads to the accuracy of the obtained results and the correctness of the conclusions drawn. because precisely on the basis of the evaluation criteria proposed by us, it allows to forecast the employment of the population with high accuracy and to identify the existing shortcomings, at the same time, it creates an opportunity to organize the effective employment of the population by using the indices of economic interest. references 1. address of the president of the republic of uzbekistan shavkat mirziyeyev to the oliy majlis. december 28, 2018. lex.uz 2. shodmonov sh. and others. economic theory t.: finance, 2002. p. 19. 3. novikov da, zakoni, zakonomernosti i principi upravleniy. http://www.mtas.ru/ 4. касимов а. а. меҳнат бозорининг ривожлантириш ва аҳоли бандлигини таъминлаш йўллари //journal of marketing, business and management. – 2022. – т. 1. – №. 2. – с. 21-28. 5. compiled by the authors based on the data of the statistical agency under the president of the republic of uzbekistan. 6. compiled based on the authors' research. 7. compiled based on the authors' research. http://www.mtas.ru/ american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 233 www.americanjournal.org the influence of the international standard iso 10015:2019 dimensions on organizational effectiveness through the mediating role of administrative empowerment: an analytical study in the mayoralty of baghdad mohammed thaer ali ph.d. candidate department of management, faculty of economics and management of sfax (fsegs), modils research unit, university of sfax, tunisia mohammed.albayati89271@gmail.com dr. raoudha kammoun senior lecturer in the department of management, faculty of economics and management of sfax (fsegs), modils research unit, university of sfax, tunisia raouda.kammoun@fsegs.usf.tn a b s t r a c t k e y w o r d s the current study aims to determine the influence of the dimensions of the international standard iso 10015:2019, represented by its provisions (competence management, competence management, and individual development) on organizational effectiveness through the mediating role of administrative empowerment in the mayoralty of baghdad, where the study is applied. the study seeks to diagnose the extent of the mayoralty of baghdad's awareness of the standard's requirements: international and the extent of its interest in levels of administrative empowerment and interest in organizational effectiveness. the researcher used the descriptive and analytical approach, using the questionnaire to collect data and information. a sample that included 380 was selected and distributed among department directors, assistant department directors, and division and unit officials at the upper and middle administrative levels. the executive office at the headquarters of the baghdad mayoralty, where it is applied, and sem (structural equation modeling) statistical methods were adopted to achieve the study's objectives. to diagnose and measure the study variables and test the study hypotheses, reliance was placed on statistical applications (spss 27), in addition to the statistical package (stata 17) and the statistical package (r), and the study reached a set of conclusions, the most important of which is the existence of a relationship and impact to the dimensions of the international standard iso 10015:2019 in international standard iso 10015:2019 dimensions, administrative empowerment, organizational effectiveness. american journal of business management, economics and banking volume 23 april 2024 p a g e | 234 www.americanjournal.org organizational effectiveness, and that administrative empowerment achieves mediation between the variables of the study. the study also reached a set of recommendations, the most important of which is the necessity of establishing the baghdad mayoralty, conducting an evaluation survey and measuring the effectiveness of applying the competency management and personnel development system by the international standard iso 10015:2019 so that empirical evidence of the results of applying this standard is obtained, and working to restructure personnel development programs in a way that helps to use competence within the organization in a more effective and focused manner. in addition to working on monitoring and evaluating the personnel development program and its implementation by competent observers. introduction globalization and rapid technological development have created a challenge for organizations and a source of great pressure on them to continue, succeed, and develop their performance. therefore, organizations have sought to adopt modern administrative trends to develop the performance of the human element as the fulcrum of organizations' growth, which confirms the human element's importance in the human element's life and continuity. organizations, so the study of human competencies and how to develop them for any organization is the basis for improving the quality of performance by preparing human resources capable of performing the duties and tasks assigned to them, and this is done through training, which is one of the most important means of advancing organizations, as the topic of competency management has become the concern of many people. specialists consider it a strategic factor among the key success factors through identifying and evaluating competencies to determine their true level. the international organization for standardization has issued a specification for competency management and personnel development (iso 10015:2019), considered one of the modern administrative methods in the management world, to improve performance. organizations and developing organizational effectiveness in them, enhancing their capabilities, as well as applying other administrative methods, such as applying the strategy of administrative empowerment by delegating authority and giving workers the authority to confront problems and solve them, as well as sharing information between administrative levels promptly, and motivating them by providing material and moral rewards, which achieves organizational effectiveness in the researched organization, and based on the above, a hypothetical chart was built that determines the relationship between the independent variable (iso 10015:2019) and its requirements (clause 4. competency management, clause 5. competency management and individual development) and its influence on the dependent variable (organizational effectiveness). ) in its dimensions (job performance, organizational development, and job satisfaction) through the mediating role played by (administrative empowerment) in its dimensions (delegation of authority, work teams, effective communication, and motivation), researched in the baghdad mayoralty, which is considered one of the most important service institutions in baghdad, it is responsible for building infrastructure, including (implementing drinking water projects, implementing sanitation, implementing parks and landscaping projects, solid waste and environment management, and other vital projects). american journal of business management, economics and banking volume 23 april 2024 p a g e | 235 www.americanjournal.org 1. literature review today, the world is witnessing amazing technological, economic, and social developments resulting from the impact of globalization and the great changes it has brought about in the work of organizations and competition in the global business market. in light of this reality, it has become completely clear to the world that there is a fundamental difference between successful and unsuccessful organizations, and that is represented by the quality of the human resources that these organizations possess, so human resources are considered the main driver of any organization, whether small or large. the organization cannot achieve its goals and success without efficient, highly skilled, qualified, and trained human resources according to international training standards. this is what we have concluded. a study (volkova, 2001) identified a weakness in following identical controls that support the training policy for workers in most russian companies. the study concluded that it is necessary to apply the iso 10015 standard to improve workers' performance in russian companies by laying the foundation for an appropriate basis of training standards. we note that interest the study focused on evaluating the reality of training in the organization under study according to the iso 10015 standard, and the ambiguity is still clear in how to develop the capabilities of employees, develop their skills, and empower them to improve the effectiveness of the organization. in the same context, the study (al-kaabi, 2003) showed the distance of the researched organization from implementing the international standard iso 10015 in all respects. its paragraphs amounted to a large percentage of approximately two-thirds level, and the study recommended adopting the international standard iso 10015 in the organization under study as an approved approach based on which the training activity is practiced and evaluated. we note that this study also dealt with evaluating the actual reality of the organization under study with the international standard for training quality and recommended the application of the international standard, but did not specify methods for managing competencies and developing individuals and how to maintain the competencies available in the organization under investigation, as well as the study of (al-enezi & al-zubaidi, 2008), the study of (shalbaf et al., 2020), the study of (shaker, 2021), and the study of (natek sh. , lafta, 2022) all of these studies are based on evaluating the reality of training in the investigated organizations according to the international standard iso 10015, and the question remains: is evaluating organizations according to the standard sufficient to qualify and develop the efficiency of working individuals and develop their skills? therefore, human resources must be invested appropriately commensurate with the size of technological developments in the business environment. therefore, these studies dealt with the international standard alone; there are no other variables with it. checklists are usually used in analyzing the results to determine the size of the gap between the actual reality of the organization under study and the requirements of the international standard. the current study dealt with the international standard as an independent variable, organizational effectiveness as a dependent variable, and administrative empowerment as a mediator. here, the first research gap appears, noting that most of the studies dealt with the international standard, iso 10015, version 1999, regarding training quality, while the current study dealt with the latest version, 2019, which is considered a guide. a guide to help organizations manage their competencies and develop their individuals. this publication provides guidance for the organization to create, implement, maintain and improve systems for managing competency and developing individuals to positively influence the results related to enhancing the effectiveness of the organization, as indicated in clause (7.2 efficiency) of the standard (iso 9001: 2015), which american journal of business management, economics and banking volume 23 april 2024 p a g e | 236 www.americanjournal.org stipulates: the organization must: (identify the necessary competencies for individuals who carry out work under its control and affect the performance and effectiveness of the quality management system, and ensure that these people are competent on the basis of appropriate education, training or experience, and take measures, as applicable, to acquire the necessary competencies and evaluate the effectiveness of these procedures, and documented information (records) are kept as evidence of efficiency), and although some studies dealt with the international standard iso 10015 with another variable, such as the study (government, 2009), which dealt with the international standard and its impact on the performance of employee managers in the organization under investigation, as this study is similar to the current study in terms of the study sample, which is managers at the three upper, middle, and executive levels of management in the organization under study. the study reached a set of results, the most notable of which is the inability of the organization under study to identify and analyze weak points in performance. this is considered another research gap. the study also uses version 1999, and the study (huang et al., 2017) dealt with the international standard and its impact on the quality of service. the study concluded that adopting the international standard iso 10015 is the ideal solution to problems organizations face and improve their performance. the study (jaafar, 2020), which was the international standard, is the dependent variable, as it dealt with the impact of knowledge makers on the quality of training according to iso 10015, as the study sample was the individuals working in the researched organization. the study (ali et al., 2021) dealt with the standard and its impact on institutional excellence, and the study sample was the managers of the researched organization; all of these studies use the old version of the standard, which is the 1999 version, in addition to the study sample, most of which are individuals working in the organization under study. in addition, no study has ever dealt with the iso 10015:2019 standard in its theoretical aspect or its practical aspect by adopting the provisions of the standard, which are (item 4 competency management and item 5 competency management and individual development) with the variable of organizational effectiveness as an independent variable, except for the study (okeoma, 2019) which dealt with the relationship between total quality management and organizational effectiveness. the study reached a set of results, the most prominent of which is that total quality management has a high-level effect on organizational effectiveness, and we note the ambiguity of the study's variables. we did not know what the principles of total quality management are, its applications, or the specifications used, and it was not clear to us what the dimensions of organizational effectiveness are used, and here the second research gap appears, and the ambiguity is still clear between the variables of the study, between the specification and the variables mentioned in previous studies, and even the variable of the current study, which is organizational effectiveness, and when we talk about the literature of modern management, and modern administrative methods that are no longer like their predecessors, as organizations today have become it is aware of the importance and role of human resources and considers it a competitive weapon, despite all the technological developments taking place in the environment, but the human resource remains the one who manages and innovates these developments and innovations in the business market, so organizations began to apply modern strategies in management, due to the administrative and structural complexity in organizations, there was a need to adopt the concept of administrative empowerment and its role in improving the organization's performance, and helping it preserve its human resource by giving it the powers to make decisions and solve problems. perhaps the most prominent dimensions of administrative empowerment are (delegation of authority, work teams, availability of information, and motivating american journal of business management, economics and banking volume 23 april 2024 p a g e | 237 www.americanjournal.org workers). the researcher believes administrative empowerment is important in strengthening the relationship between human resources and maintaining it by giving part of the powers. it is very helpful to the international standard by placing it as an intermediary variable between the international standard iso 10015:2019 and the dependent variable organizational effectiveness, as the researcher did not find a study that places empowerment. administrative management is a mediator, especially between international standards and organizational effectiveness. the researcher found studies dealing with total quality management and administrative empowerment, such as a study (sweis, 2013) that studies the impact of total quality management practices in empowering employees. the study reached a set of results, the most prominent of which is that total quality management practices, when implemented, positively impact employee empowerment, but ambiguity remains in the variables. the study did not specify what applications of total quality management positively impact employee empowerment. in the same direction, a study (al-rasheed, 2020) studies the relationship between administrative empowerment and the principles of total quality management. the study found a set of results, most notably a positive, direct correlation between administrative empowerment and comprehensive quality management at a significance level of 0.01. there is still ambiguity in the relationship, which generates intellectual controversy and incentivizes us to research bridging this gap by using administrative empowerment as a mediating variable by its dimensions. the fourth is the relationship between the international standard iso 10015:2019 and organizational effectiveness, and here, the third research gap appears. in addition, the researcher reviewed studies that dealt with the relationship between administrative empowerment and organizational effectiveness, such as the study (dizgah et al., 2011) and the study ( sadq et al., 2019), which highlights the importance of administrative empowerment and its positive role in improving organizational effectiveness through delegating powers, sharing information, relying on work teams, motivating employees, and other dimensions mentioned in studies. still, the ambiguity of this relationship between the variables remains. the question arises whether it is possible for organizations, in light of this competitive struggle in global markets and developments in the external environment, to give or delegate some of their powers to any member of the organization, whether a worker or a manager. and build work teams? unless there is comprehensive training at the level of the organization as a whole and by approved international standards, and programs to develop employees and develop their skills, as well as attracting talents and competencies from outside the organization and maintaining the competencies available in the organization, here also a fourth research gap appears. all of these considerations were present for the researcher to be keen to identify these gaps and fill them. this is at the level of the intellectual and theoretical framework. as for the applied aspect, the problem seems larger, especially when we talk about the largest service organization in iraq, the baghdad mayoralty, which is considered the largest iraqi governmental organization in employing workers. accordingly, it is considered the institution most in need of identifying and analyzing training needs, as swiss scientist (raymond sanner), a member of the iso tc176 committee who participated in the working group that worked on preparing the international standard iso10015 since 1993, says that achieving the highest return on investment in training, it is done by confirming or ensuring the quality of that activity in all its activities and programs (saner, 2002: 53). therefore, the problem of the study can be embodied in the main question: what is the extent of the impact of the requirements of the international standard iso 10015:2019 in enhancing organizational effectiveness through the mediating role of administrative empowerment. american journal of business management, economics and banking volume 23 april 2024 p a g e | 238 www.americanjournal.org 2. relationships between study variables and hypothesis building 2.1. the relationship of iso 10015:2019 (competence management and individual development) to organizational effectiveness: competence management and individual development in organizations occupy great importance due to the close connection between the quality of performance and the efficiency of employees. it also requires focusing on the personnel development system through effective training programs. from this standpoint, the administration exerts many efforts aimed at enhancing the status of employees, in an effort to achieve organizational effectiveness and achieving its goals (mansouri, 2021: 105), and according to (lawler and ledford, 1997) an organization is considered effective when there is a good fit between its strategy and its competencies (potnuru et al., 2021: 405), and according to the resourcebased view, the performance of the organization varies according to human resources and their capabilities (bendickson & chandler, 2019:163), and (aburumman et al., 2020:643) believes that managing the competencies present in the organization must have an incentive, as compensation systems and performance evaluation are used on the basis fair reward, which leads to increasing productivity and employee loyalty, reducing bias at work and increasing the level of job satisfaction for employees, and thus employees in the organization have become seen as its most important resource, so that the efficiency and effectiveness of this organization depends on the efficiency of the human element, as the organization must make a choice the best human resources that have different skills and knowledge, as they provide the organization with added value. iso 10015:2019 also indicated that it is necessary to determine the needs of (individual) competencies, as it was pointed out by (singh et al., 2019, p. 1692) that they contribute positively to achieving well-being for the human resources working within the organization through their role in helping them to carry out difficult activities and tasks within it, and then enhancing their position in the organization and their role in achieving job performance. in the same direction, (khelassi, 2010, p. 15) believes that competency management is not limited to evaluating the performance of the individual or group within the organization but rather extends it to the angle of vision towards...reaching the organization's reputation and position among other organizations. when the organization possesses distinguished human minds and competencies, this is reflected in achieving organizational development. 2.2. the relationship of iso 10015:2019 (competence management and individual development) to administrative empowerment: the study of the relationship between (competence management and individual development) and administrative empowerment is one of the important and relatively recent studies in the world of management, as empowering employees can only be achieved through training them on modern and effective means of performing tasks, which is one of the seven factors identified by cantrell (2011) for organizations that it seeks to achieve high performance ((sweis, 2013: 276), and the study (tarigan & setiawan, 2020: 865) came to prove that employee competence has a direct and indirect impact on employee motivation (which is one of the dimensions of administrative empowerment), and this was confirmed by the study (taher, (2021: 61) competency management cannot be abstracted from the motivational process of the organization’s human resource, as it is affected by it by developing the capabilities and skills and developing the effectiveness of employees in performing their administrative or functional tasks, and a study (al-moussawi, 2022: 239) concluded that selfamerican journal of business management, economics and banking volume 23 april 2024 p a g e | 239 www.americanjournal.org efficacy represented by ( (individual, collective, organizational, and strategic competence) defined by iso 10015:2019 that there is a positive correlation between the above-mentioned competencies and administrative empowerment, and that these competencies contribute to the cohesion of work teams and effective communication at the same time, and a study has proven (al-jarjari and alobaidi, 2020 ,258) that human competencies have a strong correlation with employee empowerment, and even have a direct impact on the dimensions of administrative empowerment, and (agboli et al, 2020: 52) explained that competencies lead to selection and empowerment to achieve valuable ways of being and working, the basic characteristics of this the approach is its focus on what employees can do and that the concept of competence depicts freedom, inequality and justice, as managing competencies is the process of expanding the true freedom that individuals enjoy, and the focus of this perspective is on building capabilities and creating societies in which the potential of employees can be realized and that greater freedom enhances their capabilities in developing themselves (dasuki et al, 2014: 322), and (houtzagers, 1999) indicates that the management of competencies and skills is closely related to organizations’ efforts to empower employees in order to increase the organization’s competitive advantage and effectiveness (chan et al., 2013: 387). 2.3. the relationship of administrative empowerment to organizational effectiveness: empowerment helps to achieve a specific culture and environment in the organization and thus increase organizational effectiveness, through the participation of employees in organizational processes and decision-making, and that all visions and strategies in the organization need the ability and empowered individuals (mohapatra & sundaray, 2018: 101), as the results of a study showed (dwived, 1998: 164) that there is an interrelation between administrative empowerment and organizational effectiveness, which facilitates the application of advanced technology, and (al-saadi, 2006) believes that organizations reap many benefits through the application of administrative empowerment such as enhancing organizational effectiveness (al-saadi, 2006: 63), the organization's effectiveness standard is one of the important indicators in measuring the extent to which the organization achieves its objectives in harmony or adaptation with the environment in which it operates in terms of exploiting available resources. therefore, management has a major role in achieving the organization's objectives by creating the appropriate organizational climate that would enable the participation of employees, developing their sense of responsibility and belonging, instilling a spirit of cooperation and loyalty in the job, and learning about production and productivity indicators and the quantity, quality, and size of the goods or service outputs they provide (al-mhairat, 2009, p. 53). from another point of view, (aljuraid & alsmairal, 2020 p. 676) believes that the view towards administrative empowerment is reflected in the employee's behavior in addition to the organization's commitment, which plays an important role in enhancing the overall organizational performance and this contributes to improving the organizational effectiveness of the organization. (ziyakashany, 2009) also promises that administrative empowerment is one of the useful tools for raising the quality of human resources and increasing organizational effectiveness in organization (ziyakashany, 2009, p. 95). delegation of authority is one of the most important dimensions of administrative empowerment, which provides a climate of trust with their leaders. they become more creative and innovative, enhancing the organization's effectiveness and obtaining outstanding performance (choi et al., 2016, p. 5). the important dimension of administrative empowerment is motivating employees, whether material or moral. their effect depends on their ability to stimulate american journal of business management, economics and banking volume 23 april 2024 p a g e | 240 www.americanjournal.org the motivation of individuals and enhance their enthusiasm, confidence in the organization, and loyalty, which contributes to enhancing organizational effectiveness (diab, 2017, p. 824). among the important dimensions of administrative empowerment is sharing information. as (karakoc & kucukyilmaz, 2009, p. 6) believes that sharing information and knowledge with employees is necessary to contribute to organizational performance, and (al-khalifa 2020, p. 219) believes that work teams are elements of strength in administrative empowerment because of the important role the team provides in confronting problems and rationalizing the consumption of resources efficiently and effectively, as the shared sense of responsibility brings real power in increasing the degree of organizational loyalty and commitment, which enhances organizational effectiveness as a whole. through the above theoretically and intellectually, the hypothesis can be formulated as follows: h (1/1): competence management positively affects organizational effectiveness. h (1/2): competence management and individual development positively impact organizational effectiveness. h (2/1): competence management positively affects administrative empowerment. h (2/2): competence management and individual development positively affect administrative empowerment. h (3): administrative empowerment has a positive effect on organizational effectiveness. h (4/1): administrative empowerment mediates the relationship between competence management and organizational effectiveness. h (4/2): administrative empowerment mediates the relationship between competence management, individual development, and organizational effectiveness. 3. study methodology: the analytical method was adopted for the current study. the study sample consisted of (380) managers from senior, middle, and executive leadership from the baghdad mayoralty, the study's subject; therefore, the basic measurement tool was the questionnaire. the stata statistical program based on the esm structural equation model was used to test the relationship between the research variables. 4. study model (sem): this model aims to study the effect of the two dimensions of the international standard (iso 10015:2019) as external variables on the overall variable of organizational effectiveness as an internal variable, whether directly or indirectly through the overall variable of administrative empowerment as an intermediary variable in the relationship between them. therefore, this model attempts to examine the sub-hypotheses h(1/1), h(1/2), h(2/1), h(2/2), h(3), h(4/1), h(4/2) . administrative empowerment will be expressed as a latent variable of four measurements: delegation of authority, work teams, effective communication, and motivation. on the other hand, organizational effectiveness is expressed as a latent variable comprising three measurements: job performance, organizational development, and job satisfaction. the path analysis here includes the following elements: 4.1. estimating the structural model: below is the final model after being modified to have an excellent fit, as in figure (1). american journal of business management, economics and banking volume 23 april 2024 p a g e | 241 www.americanjournal.org figure (1) structural model results it is clear from the goodness-of-fit statistics shown at the bottom of the figure that the structural model has a perfect fit or matching, meaning that the structural model is a perfect match with the actual study data. the minimum variance value (χ2/df) was (1.429), which is less than the standard value of 3, reflecting an excellent suitability level. this is confirmed by the statistical value (χ^2) of the original model versus the saturated model, which was not statistically significant, indicating that the model is a perfect fit. the root mean square error index (rmsea) reached a value of (0.034), indicating the model fit perfectly. as for the pclose statistic, it was not statistically significant, and therefore, we can accept at the 1% level that the model has a perfect fit. the comparative fit index (cfi) and the tuckerlewis index (tli) were approximately equal to one, confirming that the model is fully fit. finally, the standard root mean square residual (srmr) index was less than 0.09, indicating an excellent model fit. the statistical value (χ^2) for the baseline versus the saturated model was statistically significant at the 1% level, indicating that the model is poor (the only indicator indicating that the model is poor). therefore, the model can generally be accepted as very accurate and appropriate to the data collected to examine the study hypotheses. therefore, after being satisfied with the structural model's quality (path analysis for hypothesis ( (standardized estimates ( chi-square (model vs. saturated)= 30.005, df= 21, prob.= 0.092, 𝜒2/𝑑𝑓= 1.429 chi-square (baseline vs. saturated)= 3015.84, df= 35, prob.= 0.000 cfi= 0.997, tli= 0.995, srmr= 0.012, cd= 0.804, rmsea= 0.034, pclose= 0.840 aic= 2763.406, bic= 2893.432 american journal of business management, economics and banking volume 23 april 2024 p a g e | 242 www.americanjournal.org and suitability to the data collected, we can continue the analysis to obtain the path coefficients. table (1) summarizes the results of the path analysis of the study model. table (1): results of the impact of the dimensions of the international standard (iso 10015) on organizational effectiveness in light of the mediation of administrative empowerment internal variable: administrative empowerment, organizational effectiveness. external variable: competence management, individual development. measurements: delegation of authority, work teams, effective communication, motivation, job performance, organizational development, and job satisfaction. estimation method: maximum likelihood method with satorra-bentler paths expected signal unstandardized transactions standard coefficients standard deviation statistic z probability administrative empowerment equation: competence management → administrative empowerment + 0.6359 0.6311 0.048 13.17 0.000** individual development → administrative empowerment + 0.3147 0.3065 0.045 6.99 0.000** organizational effectiveness equation: administrative empowerment → organizational effectiveness + 0.9768 0.9137 0.082 11.88 0.000** competence management → organizational effectiveness. + 0.1583 0.1469 0.059 2.65 0.008** individual development organizational effectiveness + -0.1132 -0.1031 0.046 -2.44 0.015* " administrative empowerment " measurements create a variable administrative empowerment→ delegation of authority 1 0.8087 (constrained) administrative empowerment→ work teams 1.0524 0.8729 0.195 20.54 0.000** administrative empowerment → effective communication 1.1149 0.8942 0.051 21.34 0.000** administrative empowerment→ motivation 1.0511 0.8754 0.052 20.63 0.000** " organizational effectiveness " measurements create a variable organizational effectiveness → job performance 1 0.8614 (constrained) organizational effectiveness → organizational development 0.9750 0.8093 0.049 19.93 0.000** organizational effectiveness → job satisfaction 1.0122 0.9029 0.042 24.31 0.000** note: ** indicates statistical significance at the 1% level. from the previous table, it is clear that: first: regarding the results of the administrative empowerment equation, it is clear from the paths of the equation that there is a direct positive effect of competence management and individual development (the latent sub-dimensions that make up the international standard) on administrative empowerment in the baghdad mayoralty, at the 1% significance level. therefore, these results support the fulfillment of the sub-hypotheses h (2/1) and h (2/2), which state that “there is a positive american journal of business management, economics and banking volume 23 april 2024 p a g e | 243 www.americanjournal.org impact of the dimensions of competency management and individual development on the level of administrative empowerment.” using standard path coefficients (whose coefficients reflect the relative importance of the variables), an increase of one standard deviation in competency management and individual development will increase administrative empowerment by 0.632 and 0.307 standard deviations, respectively. this means that the effect of competency management on administrative empowerment is twice the size of the effect of individual development, which indicates that competence management is more important for administrative empowerment than individual development. second: regarding the results of the organizational effectiveness equation, the path (administrative empowerment→ organizational effectiveness) shows a direct positive effect on organizational effectiveness at the 1% level of administrative empowerment in the baghdad mayoralty. this supports verifying the third main hypothesis in h(3). also, the path (competence management→ organizational effectiveness) shows a direct positive effect at the 1% level of competency management on the level of organizational effectiveness in the baghdad mayoralty. according to the standard regression coefficient, increasing competency management by one standard deviation increases organizational effectiveness in baghdad mayoralty by 0.147 standard deviations on average, i.e., an increase equivalent to 14.7% of the increase in competence management. this supports the verification of sub-hypothesis h (1/1), which states: “there is a positive impact of competency management on the level of organizational effectiveness as a whole. on the other hand, the path (individual development→ organizational effectiveness) shows a direct negative effect at the 5% level of individual development on the level of organizational effectiveness in the baghdad mayoralty. according to the standard regression coefficient, an increase of one standard deviation in the level of individuals’ development will lead to a decrease in the level of organizational effectiveness in baghdad municipality by 0.103 standard deviations on average, that is, a decrease rate equivalent to 10.3% of the increase in the level of individuals’ development. this is supported by the non-fulfillment of sub-hypothesis h (1/2), which states: “there is a positive impact of individual development on the level of organizational effectiveness as a whole. 4.2. disintegration of the impact pathways : the following table (2) shows the disintegration of the paths of the structural model so that it shows the direct and indirect effect of the two dimensions of the international standard (iso 10015:2019) on the level of organizational effectiveness in the baghdad mayoralty through administrative empowerment, as well as the total effect. thus, this table lets us know whether the administrative empowerment variable is a mediator. of the into direct, indirect and totaleffects of the disintegrationtable (2): the path direct impact indirect effect total effect competence management→ organizational effectiveness 0.1583 ( 2.65)** 0.6212 ( 9.78)** 0.7796 ( 14.39)** individual development →organizational effectiveness -0.1132 (-2.44)* 0.3074 ( 6.33)** 0.1942 ( 3.76)** note: **and * indicate statistical significance at the 1% and 5%, respectively. american journal of business management, economics and banking volume 23 april 2024 p a g e | 244 www.americanjournal.org several interesting results emerge from the table: there is a direct and indirect positive effect of competence management on organizational effectiveness in baghdad mayoralty. increasing the level of competence management by one degree will lead to a direct increase in organizational effectiveness by 0.158 degrees and an indirect increase of 0.621 degrees through the administrative empowerment variable. thus, competency management has a total impact of 0.780 degrees on organizational effectiveness, which comes from direct and indirect impacts. on the other hand, we find that individual development has a direct negative impact on the level of organizational effectiveness at the 5% level, as opposed to a positive indirect impact through administrative empowerment. an increase of one degree in the level of individual development will lead to a direct decrease in the level of organizational effectiveness by 0.113 degrees and an indirect increase of 0.307 degrees through the variable of administrative empowerment. this means that the indirect increase is much greater than the direct decrease. therefore, competency management has a positive overall effect of 0.194 degrees on organizational effectiveness from direct and indirect effects. 5.3. mediation test: table (3) shows the results of baron & kenny's three-step test, which aims to examine the mediating role informally. as follows: table (3): baron & kenny's approach to mediation research for the structural model paths the first step the second step the third step x → m m → y x → y competence management, →administrative empowerment, →organizational effectiveness [β = 0.636]** [β = 0.977]** [β = 0.158]** individual development, →administrative empowerment→organizational effectiveness [β = 0.315]** [β = 0.977]** [β = 0.113]* note: **and * indicate statistical significance at the 1% and 5%, respectively. it is clear from the table that there is an effect in the first and second paths (x →m) and (m →y) for the two dimensions of the international standard (iso 10015:2019). we also find an effect in the third path (x →y). this implies that the two dimensions of the international standard (iso 10015:2019) affect administrative empowerment in the first track. administrative empowerment also affects organizational effectiveness in the second track, and the two dimensions of the international standard (iso 10015:2019) directly affect organizational effectiveness in the third path. thus, the baron & kenny test suggests that administrative empowerment may mediate (partial mediation) between "the two dimensions of competence management and individual development and organizational effectiveness. this supports h(4). this implies that the dimensions of competence management and individual development, directly and indirectly, affect organizational effectiveness through administrative empowerment, which means that administrative empowerment transmits part of the effect. here, to formally evaluate the mediating variable, and this supports the hypothesis of h(4/1) and h(4/2), the sobel test will be estimated here, in addition to the two statistics (rit) and (rid), as shown in the following table (4). american journal of business management, economics and banking volume 23 april 2024 p a g e | 245 www.americanjournal.org table 4: mediation test for the structural model paths sobel test rit rid type of mediation competence management, →administrative empowerment, →organizational effectiveness 0.621 (8.822)** 0.797 3.924 partial mediation individual development,→administrative empowerment, and organizational effectiveness 0.307 (6.026)** 1.583 2.716 partial mediation note: ** indicates statistical significance at the 1% level. here, it is clear from the table that the results of the sobel test confirmed what was concluded using the three-step baron & kenny test, as the test statistic was statistically significant for the two dimensions of the international standard (iso 10015). we also note from the statistics (rit) and (rid) the following: • from the rit statistics, it is clear that the percentage of the impact of individual development on organizational effectiveness through administrative empowerment (the mediating variable) is equivalent to (1.583), which is much higher than the percentage of the impact of competence management on organizational effectiveness through administrative empowerment, which is equivalent to (0.797). • therefore, from the rid statistic, it is clear that the mediating effect of administrative empowerment is approximately 3.924 times greater than the direct effect of the competence management dimension on organizational effectiveness. it is approximately 2.716 times greater than the direct effect of the people development dimension on organizational effectiveness. 5.4.general statistics of the structural model: table (5) displays the general statistics of the structural model, represented by the coefficient of determination (r2) statistic, the wald test statistic, and the model stability test. table (5): goodness-of-fit statistics for the structural model equations rsquared wald test for equations eigenvalue steady state chi2 df prob. eigenvalues modulus observed administrative empowerment equation 78.5% 441.56 2 0.000** 0 0 the organizational effectiveness equation 92.8% 391.92 3 0.000** 0 0 total 80.4% stability index = 0 note: ** indicates statistical significance at the 1% level. it is clear from the previous table that the two dimensions of the international standard (iso 10015:2019) together explain 78.5% of the changes in the administrative empowerment level. while the remaining percentage, amounting to 21.5%, is due to random error. we also find that american journal of business management, economics and banking volume 23 april 2024 p a g e | 246 www.americanjournal.org administrative empowerment and the two dimensions of the international standard (iso 10015:2019) explain 92.8% of the changes that occur in organizational effectiveness. therefore, based on the coefficient of determination of the previous two equations, it is clear that the coefficient of determination for the structural model as a whole is equivalent to 80.4%, this indicates a high degree of fit and high explanatory power and has a high rate of determination. it is also evident that for the two equations included in the study model, the (chi2) test value was statistically significant. this suggests that the study model has statistical significance at the 1% level. lastly, as the stability index value was equal to zero, the stability test in the table shows that the model satisfies the requirement of stability overall. 6. conclusions international standard (iso 10015:2019) has a direct positive impact on organizational effectiveness at the baghdad mayoralty, in addition to its positive indirect effect on organizational effectiveness through the variable of administrative empowerment. on the other hand, we find that individual development has a direct negative effect on organizational effectiveness, as opposed to a positive indirect effect, through administrative empowerment. since the indirect increase is much greater than the direct decrease, personnel development positively impacts organizational effectiveness. thus, based on the baron & kenny test and the sobel test, administrative empowerment plays a mediating role (partial mediation) in the relationship (the two dimensions of competence management and individual development with organizational effectiveness). administrative empowerment has a positive effect on the level of organizational effectiveness as a whole . 7. recommendations based on the 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(2021), preparing a guide for managing training operations by the standard's requirements (iso 10015:2019), an applied study in the iraqi ministry of interior. a master's thesis submitted to the administrative technical college, baghdad, central technical university. 3. hakuma, lara ahmed i., (2009), "requirements of the international standard (iso 10015) in training programs and their impact on the performance of managers in the greater amman municipality: a case study," master's thesis submitted to the college of administrative and financial sciences, middle east university for graduate studies. american journal of business management, economics and banking volume 23 april 2024 p a g e | 247 www.americanjournal.org 4. jaafar, qabas zuhair abdul k., (2020). the influence of knowledge makers on the quality of training according to the standard (iso 10015): a survey study for the employees of the continuing education center in the city of baghdad / central technical university, journal of the baghdad university college of economic sciences, issue 62, pages (211–242). https://www.iasj.net/iasj/article/197773. 5. al-rasheed, s. bint tawfiq (2020). administrative empowerment among women leaders at king saud university and its relationship to the application of quality management principles, arab journal of science and research publishing journal of educational and psychological sciences, volume (4) issue (22), pages (84) -112). https://doi.org/10.26389/ajsrp.s100120. 6. mansouri, m., (2021). the role of human resources training in achieving organizational effectiveness, a field study at the bank of agriculture and rural development, the regional complex for exploitation, oum el bouaghi / khencha *004*, master's thesis in the science of consensus of organization and work, larbi ben m'hidi university umm the rest. http://hdl.handle.net/123456789/11022. 7. taher, farad muhammad, (2021). management by competencies and its impact on motivating the human resource within the organization, a case study of the "sial" company, master's thesis in political science, specializing in human resources, mouloud mammeri university of tizi ouzou, faculty of law and political science. https://dspace.ummto.dz/handle/ummto/15662. 8. al-mousawi, h. a. a., (2022). administrative self-efficacy, and its relationship to the administrative empowerment of heads of student activities units in the colleges of the university of baghdad from the point of view of its members, wasit journal of mathematical sciences, volume (8), issue (2), pages 223–243. https://www.iasj.net/iasj/article/250931. 9. al-jarjari, ahmed hassan and al-obaidi, nour ali abboud (2020). the extent to which human competencies contribute to empowering working individuals, an analytical study of the opinions of a sample of individuals working in the college of administration and economics / university of mosul, anbar university journal of economic and administrative sciences, volume 12, issue 28, pages 246-265. https://www.iasj.net/iasj/article/185051. 10. al-saadi, moayed youssef n., (2006). measuring the readiness of business establishments to work with an empowerment strategy, a theoretical basis and building a scale, iraqi journal of administrative sciences, college of administration and economics, university of karbala, volume 3, issue 11.pp.(56-94). https://www.iasj.net/iasj/article/295169. 11. al-mhairat, imad a., (2009). the impact of empowerment on organizational effectiveness, dar jales al-zaman, amman, jordan. 12. al-khalifa, al-zein al-khalifa a.-k., (2020). the reality of administrative empowerment within academic departments from the point of view of faculty members at the university of khartoum, zia journal of psychological and educational research, volume (1), issue (1), pages 212–237. https://www.asjp.cerist.dz/en/article/149860. 13. volkova, nadejda, (2001). iso 10015 programme for quality workforce, testing and diagnostics research-training center, www.testdiag.df.cen. 14. shalbaf zadeh, f., baseri, h., moallem, s. r., & mousavi bazaz, s. m. (2020). surveying training needs of nursing staff of razi hospital, torbat heydarieh, iran, through iso 10015 https://www.iasj.net/iasj/article/197773 https://doi.org/10.26389/ajsrp.s100120 http://hdl.handle.net/123456789/11022 https://dspace.ummto.dz/handle/ummto/15662 https://www.iasj.net/iasj/article/250931 https://www.iasj.net/iasj/article/185051 https://www.iasj.net/iasj/article/295169 https://www.asjp.cerist.dz/en/article/149860 http://www.testdiag.df.cen/ american journal of business management, economics and banking volume 23 april 2024 p a g e | 248 www.americanjournal.org standard in 2018. future of medical education journal, 10(2). doi 10.22038/fmej.2020.46705.1317. 15. natek sh, mohamed & lafta, baydaa sattaar,(2022). evaluation of the level of application of the quality of the training process by the requirements of the international standard (iso 10015:2019) applied research in the national insurance company, international journal of health sciences, 6(s6),pp. (6881–6899). https://doi.org/10.53730/ijhs.v6ns6.11953 16. huang, p. l., lee, b. c., wang, c. s., & sun, c. t. (2017). the relative importance of the factors under the iso-10015 quality management guidelines that influence the service quality of certification bodies. journal of economics and management, 13(1), 105-137. 17. ali, e. h., ahmed, m., & abdou, m. y. k. (2021). iso 10015 adoption as a driver for better employees' performance: implications for organizational excellence in egyptian tourism and hospitality industry. international academic journal faculty of tourism and hotel management, 7(1), 70-91. doi: 10.21608/ijaf.2021.230769 18. okeoma, v. c. (2019). total quality management and organizational effectiveness in selected breweries in south east nigeria. 19. sweis, r. j., al-mansour, a., tarawneh, m., & al-dweik, g. (2013). the impact of total quality management practices on employee empowerment in the healthcare sector in saudi arabia: a study of king khalid hospital. international journal of productivity and quality management, 12(3), 271-286. https://doi.org/10.1504/ijpqm.2013.056149. 20. dizgah, m. r., chegini, m. g., farahbod, f., & kordabadi, s. s. (2011). employee empowerment and organizational effectiveness in the executive organizations. journal of basic and applied scientific research, 1(9), 973-980. 21. sadq, z. m., ahmad, b. s., & jwmaa, s. j. (2019). the role of empowerment strategies in achieving organizational effectiveness (an analytical study of managers’ views in a sample of private banks in erbil/iraq). international journal of social sciences & educational studies, 5(3), 110. doi: 10.23918/ijsses.v5i3p110. 22. saner, r., (2002). quality management in training generic or sector specific, www.csend.org. 23. potnuru, r. k. g., sahoo, c. k., & parle, k. c. (2021). hrd practices, employee competencies and organizational effectiveness: role of organizational learning culture. journal of asia business studies, 15(3), pp. (401-419). https://doi.org/10.1108/jabs-06-2020-0237. 24. bendickson, j.s. & chandler, t.d. (2019). "operational performance: the mediator between human capital developmental programs and financial performance," journal of business research, vol. 94, pp. 162–171. https://doi.org/10.1016/j.jbusres.2017.10.049. 25. aburumman, o., salleh, a., omar, k., & abadi, m. (2020). the impact of human resource management practices and career satisfaction on employee’s turnover intention. management science letters, 10(3), 641–652. https://doi.org/10.5267/j.msl.2019.9.015. 26. singh, s. k., pradhan, r. k., panigrahy, n. p., & jena, l. k. (2019). self-efficacy and workplace well-being: moderating role of sustainability practices. benchmarking: an international journal, 26(6), 1692-1708. https://doi.org/10.1108/bij-07-2018-0219 27. khelassi réda, (2010),management ressources humaines, de: houma, alger. 28. tarigan, n. m. r., & setiawan, h. (2020). the effect of employee competence on increasing employee motivation in sumut bank of sharia unit, north sumatra. budapest international https://doi.org/10.22038/fmej.2020.46705.1317 https://doi.org/10.53730/ijhs.v6ns6.11953 https://dx.doi.org/10.21608/ijaf.2021.230769 https://doi.org/10.1504/ijpqm.2013.056149 https://ijsses.tiu.edu.iq/index.php/volume-5-issue-3-article-8/ http://www.csend.org/ https://doi.org/10.1108/jabs-06-2020-0237 https://doi.org/10.1016/j.jbusres.2017.10.049 https://doi.org/10.5267/j.msl.2019.9.015 https://doi.org/10.1108/bij-07-2018-0219 american journal of business management, economics and banking volume 23 april 2024 p a g e | 249 www.americanjournal.org research and critics institute-journal (birci-journal), 3(2),pp.( 858-867). https://doi.org/10.33258/birci.v3i2.913 29. agboli, a., botbol, m., o’neill, s., richard, f., & aujoulat, i. (2020). transforming vulnerability into power: exploring empowerment among women with female genital mutilation/cutting (fgm/c) in the context of migration in belgium. journal of human development and capabilities, 21(1), pp. (49-62) https://doi.org/10.1080/19452829.2019.1661981. 30. dasuki, s. i., abbott, p., & azerikatoa, d. (2014). ict and empowerment to participate: a capability approach, information development, 30(4), pp.321-331. https://doi.org/10.1177/0266666913485259 31. chan, i. y. s., liu, a. m. m., cao, s., & fellows, r. (2013). competency and empowerment of project managers in china. in proceedings of the 29th annual arcom conference. the association of researchers in construction management (arcom). the proceedings' website is located at http://www. arcom. ac. uk/-docs/proceedings/.http://hdl.handle.net/10722/187311. 32. mohapatra, i., & sundaray, b. k. (2018, march). impact of employee empowerment on employee performance. in international journal of advanced technology and engineering research, national conference on recent trends in science, technology and management (vol. 1, pp. 98-102). http://www.ijater.com/ncrtstm.aspx. 33. dwivedi, r., (1998). " empowerment: theoretical perspectives and application in indian organizations," indian journal of industrial relations, vol.37 . no 2 (oct). pp. (164-182). https://www.jstor.org/stable/27767584. 34. aljuraid, n., & alsmairat, m. (2021). the interplay between empowerment, minimum experience and performance: an empirical study on saudi context. management science letters, 11(2), 675-680. doi: 10.5267/j.msl.2020.8.039 35. ziyakashany, l. (2009). "the role of human resource empowerment on organizational effectiveness," sanate lastike iran; no. 53, pp. 94-101. 36. choi, s. l., goh, c. f., adam, m. b. h., & tan, o. k. (2016). transformational leadership, empowerment, and job satisfaction: the mediating role of employee empowerment. human resources for health, 14 (1-14). https://doi.org/10.1186/s12960-016-0171-2. 37. diab, s. m. (2017). the impact of empowerment on the organizational creativity among health directors in the jordanian ministry of health (an empirical study). international journal of academic research in business and social sciences, 7(12), 821837..http://dx.doi.org/10.6007/ijarbss/v7-i12/3715. 38. karakoc, n., & kucukyilmaz, a. (2009). employee empowerment and differentiation in companies: a literature review and research agenda. enterprise risk management, 1(2). https://doi.org/10.5296/erm.v1i2.115 39. iso 10015:2019 quality management for competence management and people development. https://doi.org/10.33258/birci.v3i2.913 https://doi.org/10.1080/19452829.2019.1661981 https://doi.org/10.1177/0266666913485259 http://hdl.handle.net/10722/187311 http://www.ijater.com/ncrtstm.aspx https://www.jstor.org/stable/27767584 http://dx.doi.org/10.5267/j.msl.2020.8.039 https://doi.org/10.1186/s12960-016-0171-2 http://dx.doi.org/10.6007/ijarbss/v7-i12/3715 https://doi.org/10.5296/erm.v1i2.115 american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 57 www.americanjournal.org modern forms of auditing and directions for improvement of internal control b. turabov associate professor of finance and credit department, doctor of economics (dsc), national university of uzbekistan (nuuz) a b s t r a c t k e y w o r d s this article describes the modern forms of audit and gives brief information about the internal control system in our country. recommendations for improving the internal control system are also mentioned. accounting system, internal control system, internal standards of audit organizations, synthetic account, analytical account, importance in audit, audit risk. introduction in recent years, a number of documents of the president of our country have been adopted regarding the further improvement of state financial control, the further improvement of the efficiency of state budget expenditures and the improvement of the activities of state financial control bodies. within the framework of these documents, it was determined to further strengthen vertical control over the execution of state finances, to organize control measures mainly on the basis of preliminary identified risk-analyses. in particular, the law of the republic of uzbekistan “on auditing activities” was adopted on february 25, 2021 in order to eliminate contradictions in regulatory legal documents in the audit and control system and to ensure a single regulatory legal framework, and relations in the field of auditing activities were regulated with it. the adoption of this law serves as the basis for institutional reforms in the audit system. to conclude an agreement with the international federation of accountants to recognize the international standards of auditing activities, to translate the text of the international standards of auditing into the national language, to discuss these standards with auditors, experts and other users of these standards, representatives of the scientific community, the text of the international standards of auditing in the national language of the international standards of auditing, the procedure for consideration of the compliance with the english text by the commission and the tasks of decisionmaking on the introduction of international auditing standards in the territory of the republic of uzbekistan were determined. also, the regulation on the procedure for recognizing international audit standards for use in the territory of the republic of uzbekistan was developed, and in the practical implementation of these international standards, the expediency of ensuring the implementation of the decision of the cabinet of ministers dated may 5, 2021 “on measures to improve the system of training employees of the internal audit service” was determined. american journal of business management, economics and banking volume 30 november 2024 p a g e | 58 www.americanjournal.org in this regard, a number of tasks were defined in the decision of the president of the republic of uzbekistan dated august 4, 2021 “on additional measures to improve the auditor certification system” in order to train the employees of the internal audit service in international standards and issue them certificates in the prescribed manner. analysis and discussion of results based on the advanced experience of developed countries, the procedure for issuing, reissuing, extending and terminating the auditor’s qualification certificate, approval in agreement with the ministry of finance, organization and structure of qualification exams, recommended materials and training programs for preparation for qualification exams, it was also decided that information on the results of qualification exams will be posted on the official website of public associations of auditors, and the database of auditors with auditor qualification certificates will be maintained by public associations of auditors. the implemented reforms are aimed at ensuring the implementation of the tasks defined in the state program for the implementation of the strategy of actions on the five priority directions of the development of the republic of uzbekistan in the “year of supporting youth and strengthening the health of the population” in 2017-2021 and the decree of the president of the republic of uzbekistan “on measures to further improve the state financial control system” dated august 7, 2021 was approved for the purpose of improving the state financial control system over the effective management of state financial resources and the targeted and rational use of budget funds. according to the decree, in addition to the forms and types of control implemented from january 1, 2022, the following types of audits were introduced. figure 1. audit types introduced from january 1, 20221 in particular, a financial audit was introduced, which provides for the assessment of accounting (budget) accounting, the truthfulness of financial reports, the purposeful and legal use of financial resources and the completeness of income, as well as the legality of financial transactions. 1 compiled by the author based on the data. audit types financial audit compliance audit performance audit audit involving citizens american journal of business management, economics and banking volume 30 november 2024 p a g e | 59 www.americanjournal.org the general objectives of the financial audit can be classified as follows: obtain reasonable assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error, and, based on that, express an opinion that the financial statements have been prepared in all material respects in accordance with applicable procedures; reporting on the results of the financial audit and informing the relevant authorities about the circumstances identified in the audit. conducting a financial audit is based on the following conditions: that the financial reporting system used in the preparation of the financial report is considered acceptable by the responsible employee; understand and recognize that the management of the organization is responsible for: to prepare the financial report in accordance with the applied financial reporting system, as well as to present it in a fair manner; to the internal control system considered necessary for preparation of financial statements without significant misstatements; to allow the responsible employee unrestricted use of all information known to him and related to the preparation of financial statements. the financial audit report should state who is responsible for preparing the financial statements. all financial audits must clearly define the basis for preparing financial statements. a financial statement audit should aim to provide reasonable assurance. compliance audits have been introduced, which provide for the verification and assessment of the compliance with the requirements of regulatory legal documents and their compliance with state programs in the use of consolidated and attracted budget funds, in the implementation of state procurement, as well as in ensuring the completeness of revenues and business processes. table 1 differences of audit types2 2 compiled by the author based on the data. mutual differences of audit types (financial audit, compliance audit) the most important factor that unites compliance and financial audits is that they often focus on the use of resources rather than on the results themselves. when a financial audit is conducted, a compliance audit is usually an integral part of it. differences between compliance and financial audit: aspects compliance audit financial audit (audit of financial statements) purpose assessment of compliance with legal requirements. assessing the correctness and reliability of financial statements. center of attention facility activity, financial transactions, information. accounting and related information of the enterprise presented in the form of financial statements. regulatory documents any laws and regulations governing the subject matter of the audit. laws and regulations that directly and materially affect accounting reporting. general principles (framework) compatibility only. compliance with the principles of financial reporting and reliability. necessary evidence inconsistency. significant errors, inconsistencies in financial statements. audit forms direct report audit, attestation audit. attestation review. american journal of business management, economics and banking volume 30 november 2024 p a g e | 60 www.americanjournal.org the figure above analyzes the differences between compliance and financial audits in 6 aspects. also, the features of the compliance audit can be explained as follows: – compliance audit is carried out by independent assessment of the compliance of the activity of the audit object, financial transactions and information with the requirements of the documents regulating the activity of the audit object; – compliance audits are concerned with legality (adherence to formal criteria such as relevant laws, regulations and agreements) or propriety (adherence to general principles governing sound financial management and the ethics of public officials); – “legality” is studied as the main focus of the compliance audit, and “correctness” can be additionally studied in the public sector, such as financial management, ethics of officials and leadership potential; – information on the results of audits is considered important information that serves as a basis for decision-making in the public sector, and it is presented based on appropriate and sufficient audit evidence; – compliance audit is aimed at ensuring reliability and provides reasonable or limited reliability in relation to the information on the audit results. in recent years, a type of control known as performance control has been widely used in developed countries. in this case, traditional control methods are complemented by new tools such as programmatic assessment, finalization, compliance with the state’s socio-economic policy. also, the effectiveness and efficiency of expenses, subsidies, benefits and preferences in the object of control, the economy of the use of allocated funds, the fulfillment of the set target indicators, the feasibility and effectiveness of the projects implemented at the expense of the consolidated budget and attracted funds, as well as the provision of funding sources for state and regional programs implementation of performance audit, which involves evaluation and analysis, was determined. table 2 differences between performance and financial/compliance audits3 3 compiled by the author based on the data. mutual differences of audit types (performance audit, financial audit and compliance audit) 1. differences between performance and financial/compliance audit: aspects performance audit financial and compliance audit (if transferred together) purpose assessing the use of funds in terms of economy, efficiency and effectiveness. assessing the legality of financial transactions and the reliability of financial statements. center of attention sectoral policies, programs, organizations, activities and management systems. basic procedures for financial transactions, accounting and reporting and control. academic background economics, political science, sociology, etc. accounting and law. methods varies by audit. standardized form. audit criteria open to professional judgment. specific criteria for each audit. not much is open to professional judgment. standardized criteria for all audits established by legislation and regulations. reports a one-time special report. change in system and content. annual report. more or less standardized. american journal of business management, economics and banking volume 30 november 2024 p a g e | 61 www.americanjournal.org in this figure given, the differences of performance audit between financial and compliance audit are analyzed in 6 areas. the purpose of the efficiency audit is to conduct an independent, impartial and reliable audit of the activities, functions, systems, state and regional programs of ministries and agencies using state financial resources to achieve direct or final results, local government bodies and organizations, and is to determine the possibilities of their improvement. in this type of audit: performance indicators standards and indicators that can be accepted based on samples (templates) or practical experience, which are based on the evaluation of performance in the direction of the performance audit; quantitative indicators of efficiency indicators measured with specific numbers that allow to assess whether the results have been achieved; quality indicators of efficiency indicators reflecting planned activities based on effective and costeffective results within specified periods; professional opinion opinion formation of a point of view based on knowledge, professional qualifications and experience by the supervisory employee in cases of uncertainties and abstract situations regarding the issues studied in the object of supervision; audit evidence evidence documents and information related to the object of control obtained from all sources; professional skepticism critical assessment of audit evidence, including documents and information supporting audit evidence; users of audit results bodies and the general public to which documents, references, conclusions and reports are presented regarding audit results are used. as the principles used in the performance audit: a) the principle of economy means minimizing the consumption of resources. the used resources must be delivered on time, in the required volume, in good condition and at the most favorable price; b) the principle of efficiency implies maximum benefit from the spent resources based on the principle of economy. this principle refers to the interdependence of the resources used and the results achieved; c) the principle of effectiveness means that the set goals and intended results are achieved through the maximum effective use of the resources spent on the basis of the principle of economy. the audit is organized on the basis of independence in the object of control, and is focused on determining the possibilities of increasing economy, efficiency and effectiveness, effective management, accountability and transparency, as well as improving the activities of the studied directions and areas. there are also specific types of audit in developed countries. for example, the state audit of the people’s republic of china is considered not only as a “job”, but it is scientifically approached and developed. scientific institutions and universities also operate under the national audit office of the people’s republic of china. there are specific audits introduced only in china:4 in particular, there is a practice of “real time audit” carried out by the national audit office, that is, during the implementation of long-term or large projects. 4 http://www.audit.gov.cn/en/n744/c68251/content.html http://www.audit.gov.cn/en/n744/c68251/content.html american journal of business management, economics and banking volume 30 november 2024 p a g e | 62 www.americanjournal.org “real-time audit” is a parallel audit of investments in large infrastructure facilities, from construction planning to commissioning. in this case, it is considered more important to audit the commissioned project, rather than identifying and eliminating its deficiency (because in many cases it may not be possible to eliminate it, or the elimination may lead to additional costs). an interim report is written for each stage of construction (design, contractor selection, construction, commissioning). “accountability” audit5 — in which the responsibility of the leader (party, ministry, agencies), in addition to the activities of the ministries and agencies under his leadership, in making economic and other decisions, is audited. in this case, not only the fact that the leader abused his authority through a decision, but also why he did not make an appropriate or timely decision when he had the authority, that is, his responsibility and behavior in the performance of official duties as a person are assessed. the ultimate goal of the audit is to protect the interests of the people. audit processes should be conducted with the aim of “ensuring the rule of law, the welfare of the population, seeking and contributing to reforms and developments”. the audit office conducts control activities such as energy saving, mineral resource exploration and use, as well as collection and management of appropriate funds, protection of agricultural land. the experience of advanced foreign countries shows that control over the use of budget funds is profitable. the study of this issue is relevant for the republic of uzbekistan. this, in turn, requires a wider and deeper study of the experiences of foreign countries in this regard. conclusion and suggestions based on the above, it is advisable to carry out the following works on improving internal control in our country: • development of a scientifically based method of controlling the spending of budget funds, strengthening the legal and regulatory bases of budget improvement; • formation of a system of effective monitoring of budget funds spending, strengthening the audit of its effectiveness and efficiency; • taking into account the possibilities of public control in the use of budget funds; • it is necessary to improve the internal information systems of ministries and agencies in order to prevent the aimless and ineffective use of budget funds and further reduce the human factor in the distribution of funds; • it is desirable to identify the risks detected in the remote control center in the internal audit services of all ministries and agencies and to establish the practice of timely prevention of risks. proper organization of internal audit activities, including review of internal audit activities, monthly review of their activities, analysis of identified deficiencies, analysis of the financial and economic unit’s activities and requests from internal audits, as well as illegal situations detected by all control bodies it is necessary to get acquainted regularly, to ensure their complete elimination within the framework of the system by internal audit, to identify the chain of culprits, existing gaps and take measures. 5 http://www.audit.gov.cn/en/n744/c68251/content.html http://www.audit.gov.cn/en/n744/c68251/content.html american journal of business management, economics and banking volume 30 november 2024 p a g e | 63 www.americanjournal.org references 1. sheshukova t.g., gorodilov m.a. audit: theory and practice of application of international standards: study guide. 2nd edition, suppl. m.: finance and statistics, 2005, 50-page. 2. audit: textbook / a.d. sheremet, v.p. suits. 6th edition, suppl m.: nits infram, 2014, 158 page. 3. yudina g.a., chernykh m.n., fundamentals of auditing: study guide m.: knorus, 2012, 79page. 4. http:/www.lex.uz 5. http://www.audit.gov.cn/en/n744/c68251/content.html http://www.lex.uz/ http://www.audit.gov.cn/en/n744/c68251/content.html american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 90 | p a g e issues of determining the value of objects of appraisal when obtaining bank loans мирджалилова дилдора шухратовна phd., доцент ташкентский архитектурно-строительный университет истамова тухфанисо магистрант 2 курса ташкентский архитектурно-строительный университет a b s t r a c t k e y w o r d s the article reveals the role of appraisal activity in market relations, describes the cases in which there is a need for real estate appraisal, and also analyzes the current state of mortgage lending in uzbekistan. real estate, real estate valuation, mortgage, lending, housing. introduction at the present stage of the development of market relations, credit plays a significant role in the economic development of the country. the need for credit is caused by the uneven circulation of individual capitals. credit acts as a form of resolving the contradiction between the accumulation of temporarily free funds in some economic entities and the need for them in others. the immediate reasons for the development of credit relations are connected with the need to ensure the continuity of the process of reproduction, namely, to ensure the continuity of the change of functional forms of the social product in the process of its movement. scientific works of domestic scientists and researchers, including n.j. tuychiev, r.kh. alimov, b.b. berkinov, a.n. kravchenko, b.y. khodiev, a.n. dzhabriev, v.u. yodgorov, d.sh. mirdzhalilova, g.a. fayzieva, are devoted to the issues of valuation of the pledge obligation, and real estate valuation in general [2-4]. the authors of foreign works on real estate valuation include m.a. fedotova, v.y. roslov, o.n. shcherbakova, a.i. myshanov, i.v. kosorukova, g.i. mikerin and others [5-8]. the development of the country's economy is associated with the creation of new enterprises, the development of small business and private entrepreneurship, the modernization and re-equipment of existing capacities, which is impossible without the use of credit resources. at the same time, the sustainable development of the country depends on the stability of its financial and banking system. the main task of the bank is to ensure the repayment of loan funds, for example, the collateral value of real estate. collateral valuation is present in various segments of the credit services market: when american journal of business management, economics and banking volume 19 december, 2023 p a g e | 91 www.americanjournal.org issuing loans, selling or assigning them; in the course of issuance, placement, circulation of mortgagebacked securities. the level of development of the republic depends to a large extent on the participation of banks in reforms, investment and lending to large projects. the main components of the national economy of uzbekistan are the sector of small business and private entrepreneurship. therefore, it is understandable why the entrepreneurship sector is actually becoming synonymous with economic growth, technological and social progress of our country. after all, it contributes to the development of the national economy, the saturation of consumer markets and, as a result, the creation of new jobs and the growth of incomes of the population. appraisal activity is a professional activity to establish the value of tangible and intangible objects, taking into account the rights to them and the interests of subjects of civil rights in relation to them. the subject of appraisal activity is the establishment of market, investment, liquidation and other types of value of the objects of appraisal. to date, in uzbekistan, the activities of appraisers at the national level are regulated by the relevant law of the republic of uzbekistan dated august 19, 1999 no. 811-i "on appraisal activities" [1]. typical cases when there is a need for real estate valuation: 1. valuation for purchase and sale or rent. it is an independent appraisal of property whether it is real estate, land, equipment, vehicle before making a transaction for its alienation, purchase or lease that will allow you not to lose money, or, on the contrary, not to spend extra money. 2. valuation for insurance. property insurance is an effective way to protect property interests related to the possession, use and disposal of property. in order to conclude an insurance contract, it is most often necessary to determine the market value of the property, since the market price most fully reflects the actual value of the insured property. 3. valuation for lending. most loans, including mortgage loans, are secured by property. an independent report on the valuation of property for lending in the bank, on the basis of which it is possible to make a conclusion about the liquidity of the object, its market price and investment attractiveness, will undoubtedly contribute to the bank's decision to issue a loan. consult an independent appraiser to get an idea of how much credit you can actually expect. valuation of real estate is carried out for the purpose of mortgage lending. mortgage lending is a long-term loan provided to a legal entity or an individual by banks secured by real estate: land, industrial and residential buildings, premises, structures. the most common option for using a mortgage in uzbekistan is for an individual to buy an apartment on credit. the central bank expects higher growth rates of mortgage lending in uzbekistan in the current 2023. according to the head of the central bank, mamarizo nurmuratov, the main factor is the dissatisfaction of demand for mortgages in past years. in 2022, banks issued mortgages worth 14.4 trillion soums (an increase of 46.9%) [8]. at the end of 2022, the balance on mortgage loans amounted to 46.4 trillion soums, an increase of 29.6% (10.6 trillion soums) compared to the corresponding period of 2021. at the same time, the volume of mortgage loans issued by banks to the population (70913 people, in 2021 it was 59570) last year increased by 46.9% to 14.4 trillion soums, of which 4.3 trillion soums fall on tashkent. the issuance of mortgages was financed mainly by the ministry of finance (10.4 trillion soums). banks also began to actively invest their funds in mortgage loans 3.79 trillion soums (an increase of 4.4 times). part of the loans was financed from the mortgage lending fund 167 billion soums. https://t.me/centralbankuzbekistan/7609 https://t.me/centralbankuzbekistan/7609 https://t.me/centralbankuzbekistan/7609 https://t.me/centralbankuzbekistan/7609 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 92 www.americanjournal.org 53,028 people received a mortgage in the amount of 10.78 trillion soums (75%) for the purchase of an apartment in a new building, another 17,885 citizens were allocated 3.59 trillion soums for the purchase of housing in the secondary real estate market. the main buyers are people aged 31-50 (70%), as well as 18-30 years old (21%). mortgage lending has an opportunity to solve the social problems of many uzbeks. having your own home brings an element of well-being and stability to people's lives. the relevance of the topic is due to the fact that a prerequisite before obtaining a mortgage is the assessment of the value of real estate. in turn, the identification and elimination of shortcomings in the existing practice of determining the value of objects of appraisal when obtaining bank loans will make it possible to calculate the market value of the object in the most correct and reasonable way. references 1. law of the republic of uzbekistan "on appraisal activities" dated 19.08.1999 no. 811-1. 2. r.h.alimov, b.b.berkinov, a.n.kravchenko, b.yu.ходиев «кўчмас mulkni баҳолаш». t.:2005 3. a.n. asaul, m.a. ikramov, m.m. mrakhmedov, v.u. yodgorov. real estate economics: a textbook. published by the national library of uzbekistan named after a.navoi, 2010.-380 p. 4. d.sh.mirjalilova "real estate management, development and realtorship" textbook. tashkent 2018 5. fedotova m.a., roslov v.yu., shcherbakova o.n., myshanov a.i. moscow, finance and statistics publ., 2008. 6. fundamentals of appraisal activity / ed. by i.v.kosorukova. moscow: banks and banking. – 2005. – 322 p. (in russian). 7. mikerin g.i. et al. methodological foundations of property value assessment. moscow: interreklama. – 2006. – 216 p. (in russian). 8. electronic resource: https://www.gazeta.uz/ru/2023/01/26/ipoteka/ american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 56 www.americanjournal.org forensic accounting and financial performance of tertiary institutions in port harcourt, rivers state akinyemi, babajide oloyode university of port harcourt business school babzto4real@yahoo.com eke, haniel okorafor (ph.d) department of port marketing university of port harcourt haniel.eke@uniport.edu.ng a b s t r a c t k e y w o r d s the issue of fraud has become an omen that is wide spreading in almost all the institutions of the nation; curtailing this ugly menace has proven abortive, it rather keeps growing even among the younger generation of today. primarily, the paper aims to investigate the nexus between forensic accounting and its tools on financial performance of tertiary institutions in port harcourt, rivers state; its objectives specifically look to: examine the association between forensic auditing and financial performance of tertiary institutions in port harcourt, rivers state and to determine the affiliation between data mining and financial performance of tertiary institutions in port harcourt, rivers state. fraud preventive theory was used as the underpinning for the paper. the population of the study comprised of the three main universities port harcourt aspect of rivers state in nigeria; thus, they university of port harcourt, rivers state university and ignatius ajuru university of education and sample determined using a judgmental sampling of the non-probability sampling method. product moment correlation coefficient was used for the analysis, and it was done under the help of statistical package for social sciences (spss) version 23. the findings revealed that forensic auditing has a solid substantial connection and affirmatively correlates with financial performance at a r = 0.904 and a pv = 0.000, and that data mining has a weak insubstantialconnection and adversely correlates with financial performance at a r = -0.212 and a pv = 0.964. the authors recommended that management of tertiary institutions should emphasize and enhance use of forensic measures as this will enable them improve on net profit margin. they also recommended that the management should ensure that the institution adapts to new technological changes taking place in the world to ensure that they have a well-structured system to accommodate these changes. data mining, forensic auditing, forensic accounting, financial performance american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 57 www.americanjournal.org introduction in nigeria, the issue of fraud has become an omen that is wide spreading in almost all the institutions of the nation; curtailing this ugly menace has proven abortive, it rather keeps growing even among the younger generation of today. on this ground, several calls have been made by all and sundry in both public and private sectors on the use forensic method of accounting as a way of checkmating some of the excesses to ensure that funds are used for their original purposes without any form of leakage. excellent corporate governance permitted by quality fiscal oversight or management is a sine qua non for the seamless functioning of an organisation that has been bastardised by lack of adequate internal control, poor financial disclosure, and ineffective auditing, which is why it has been said that in all financial quarters, the primary root causes of all troubles are bungling and ineffective corporate governance (clement & comfort, 2018). according to bhasin (2016), the origin and expansion of forensic accounting can be traced back to the prevalence of financial frauds; the role of the forensic accountant, who is tasked with preventing and resolving such crimes, entails auditing, accounting, and investigation. implementing laws, regulations, and codes of conduct in accounting is crucial for ensuring massive corporate governance through enhanced board performance in the financial organisations of any nation (okeke, ezeilo, nwobodo, &ofor, 2022; zia, 2016). according to bhasin (2013), forensic accountants add substantial value to corporate governance by creating an atmosphere that promotes the detection and elimination of fraud, the thorough investigation of suspicious activities, and open lines of communication. according to grubo, risti, and simeunovi (2013), forensic accountants are those accountants who acquire accounting, auditing, and forensic skills or expertise that aids in dealing with fraudulent issues; this means that the forensic accountant (or accountants) may be asked to provide additional expert support, advice, and substantiations on an ongoing court hearing and may be referred to as a litigation accountant (clement & comfort, 2018). that's why forensic accountants are so crucial to improving business practises all around. forensic accounting, a hybrid of forensic science and accounting, is sometimes known as investigative accounting or a fraud audit, according to okoye and gbegi (2013). what this phrase means in the context of forensic science is the application of natural law to human law. forensic scientists are often called upon to provide expert testimony in court as examiners and interpreters of evidence and facts. since accounting science is being referred to, we may assume that monetary data and issues will be the primary focus of the investigation and interpretation. conceptualization between forensic advertising and financial performance has gained increasing attention from scholars; for example, (ogutu & ngahu, 2016; adesina et al., 2020; okorieet a., 2020); however, none did this conceptualization putting the universities in port harcourt, rivers state as their area of study. thus, this is identified gap in the study. statement of the problem phony practices in a business bank or other public settings is said to have adverse effect the reasonability, execution, maintainability and notoriety of advertisements as well as poor performance of the tertiary institutions moistly with regards to accounting presentation and management of the public funds. swindle in almost every public sector like the universities have exhibited a lasting challenge to the administration and controllers alike; managing an account misrepresentation has continued to pose as a worrying issue to different parties with interests in the system. it is believed that fraudulent practices have debilitated against free-flowing and adequate running of the institutions in the nigerian american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 58 www.americanjournal.org economy, thereby leading to shortages of funds and smooth management of the institutions. just as with banks, fraud is a problem to various stakeholders; firstly, it shrinks the profitability of a university/government at different levels and this may result to reduced public value emanating out of low dividends to shareholders. worst of it, it may threaten the going concern of the government and this has the ability to impact adversely on shareholder wealth. going further, the major problem with forensic accounting is that no study has been able to proffer lasting solution to fraud detection and control. on this backdrop, the problem here is to ascertain the growing relevance of forensic accounting and its tools on financial performance tertiary institutions in port harcourt, rivers state theoretical frameworks fraud preventative theory forensic lawsuit support, as defined by akintoye (2008), is a service provided by public institutions such as universities to parties involved in, or anticipating, litigation, or to those seeking a more accurate representation of, economic issues associated to, such proceedings. legal disputes are the primary emphasis, and it can help decide disputes and help solve or settle them, even before they reach courtrooms, by addressing difficulties related to the qualification of economic damages experienced by parties involved in legal disputes. ajzen and fishbein (1980) argue that intentions are the most important factor in determining the success or failure of any planned behaviour, and that a thorough understanding of the causes of intentions yields practical insights into the behaviour. as a result, the theory of fraud prevention was developed to lessen the likelihood that anyone would intentionally commit fraud. it is the duty of the school administration to its stakeholders, as stated by goosen, pampallis, van der merwe, and mdluli (1999), to maintain and present accurate records of all transactions done against that were performed at the institution. primarily, the paper aims to investigate the nexus between forensic accounting and its tools on financial performance of tertiary institutions in port harcourt, rivers state; its objectives specifically look to: i. investigate the connection between forensic auditing and the financial success of universities in port harcourt, rivers state. ii. analyse the connection between data mining and the economic success of universities in port harcourt, rivers state research hypotheses ho1: in port harcourt, rivers state, there is no statistically substantial correlation between forensic audit and financial outcomes for universities. ho1: in port harcourt, rivers state, there is no statistically substantial correlation between data mining and the economic success of universities american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 59 www.americanjournal.org fig. 1: conceptualizing the connection between forensic accounting and financial performance source: adesina et al. (2020); olaoye and olanipekun (2018) literature review forensic accounting the word "forensic" originates from the latin word "forum," which means "of, relating to, or associated with" the law or the judicial system. forensic science can be broadly defined as "the application of scientific knowledge to legal problems" (okeke et al., 2022). the field of forensic science is commonly linked to police work. forensic accounting, defined as "the use of scientific methods to resolve issues raised in criminal or civil litigation," was introduced to the field of accounting to provide a more trustworthy and evidentiary means of bolstering probes into finances and decreasing or avoiding all forms of monetary misconduct (modugu&anyaduba, 2013). forensic accounting, according to the literature (krsti, 2009), aims to detect and investigate instances of financial reporting fraud. according to many sources (zia, 2016; okeke et al., 2022; arokiasamy& cristal, 2009; dhar& sarkar, 2010), the area of forensic accounting is distinguished by its unique blend of scientific and quantitative auditing and accountancy skills with analytical and legal procedures, judicial procedures, and computational forensics. financial, accounting, tax, and auditing expertise are put to use in forensic accounting, which is defined as "the use of such expertise in evaluating, investigating, testing, and analysing matters in civil law, law enforcement, and adjudication" (zia, 2016). given their comprehensive understanding of the structure of internal controls and the law (including the relevant statutory and customary legislation, the law of verification, and the law of procedure), forensic accountants play a pivotal role in any organisation, as this idea highlights. according to joshi (2003), forensic accounting can be defined as the use of "specialised knowledge and specified skill" to unearth the evidence of economic translations. forensic accounting, as defined by howard and sheetz (2006), is the practise of providing clear, concise, and factual interpretations and presentations of complex financial matters, often in a legal setting in the role of an expert witness. its periphery is formed by the use of accounting procedures for the aim of elucidating factual concerns in commercial litigation (okunbor & obaretin, 2010). the purpose of a forensic inquiry, according to forensic accounting financial performance (fp) net profit margin (npm) forensic auditing (fa) data mining (dm) american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 60 www.americanjournal.org degboro and olofinsola (2007), is to find evidence to back up a legal case. forensic accountants employ accounting methods to probe suspected criminal activity and unearth the full scope of the wrongdoing, as well as the perpetrators. according to okeke et al. (2022), the use of forensic accounting tools is substantial because it helps reduce the number of forged documents in nigerian banks. this is so because the tools provided by forensic accounting may be used by nigerian banks to better monitor for and prevent instances of fraud. when it comes to litigation assistance consulting, expert testimony, and fraud examination, forensic accounting thrives on the practise of a rigorous method of data gathering and analysis (odunayo, 2014). according to wuerges (2011), economic crime and fraud, as well as the need for commercial branch investigators and prosecutors, ensure the continued existence of forensic accountants. according to the author's research (popoola, che-ahmad, samsudin, &yussof, 2013), forensic accountants who have the right background can help government agencies and departments with their enforcement, recovery, audit committee, regulation, and financial statement audit teams. forensic auditing according to emma et al. (2019), forensic auditors look into all aspects of a financial situation and may even testify as an expert witness in court if fraud is suspected. forensic auditing is a subset of forensic accounting that deals specifically with disputes and litigation that can be anticipated or based on objective facts (okeja, 2014).forensic auditing, as defined by the ifa (okafor et al., 2022) is "any practise involving the collection, verification, analysis, and reporting of data with the primary aim of collecting evidence to use in a law court."when we talk about forensic auditing, we usually mean an investigation into allegations of malfeasance involving public funds or property. procedures are designed in such a way that they can be used in administrative, civil, or criminal actions (cletus &ironkwe, 2014) regardless of who committed the wrongdoing or when it occurred. according to grippo and ibex (2003), forensic audits are more thorough than standard audits, and they typically involve a series of processes designed to determine whether an accusation can be validated and the nature of any additional work that has to be done. data mining the term "data mining" is used to describe any procedure in which an investigator looks for unusual or unexpected patterns or trends in a dataset. data mining, also known as a database, is primarily concerned with the software and data files used within an organisation. it is also known as metadata because of its role in exposing information about those files to the public, such as the file's name and the timestamps of its creation and last modification (ahmed, 2017). data mining is the process of searching massive amounts of information, such as that collected by a store's scanners, for correlated products. both procedures demand extensive sorting of data or in-depth analysis to pinpoint the valuable information. when applied to datasets of a suitable size and quality, data mining technologies can open up novel avenues for economic growth. predictive information can be found in huge databases by using data mining, which automates the process. by analysing data from previous marketing mailings, data mining can determine which recipients will provide the highest return on investment (cmr educational society, 2020–2021). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 61 www.americanjournal.org according kantardzic (2011), data mining is an effective unearthing of knowledge from outsized amount of data depending on the bases and models, and there is a number of mining databases methods; they include machine learning, neural networks and genetic algorithms financial performance the term "financial performance" refers to the state of the company's finances throughout time, which includes the acquisition and disbursement of money, as measured by metrics like the percentage of capital that is sufficient, liquidity, leverage, solvency, and profit. it represents the company's ability to manage and control its resources, which means that financial performance deals mainly on attracting exctra profits to the firm and having the capacity to see to the effective utilization of the generated funds, all the benefit of the firm and its stakeholders (iai, 2016).also, financial performance is expressed in terms of management’s ability to maximizing the owners’ or wealth of shareholders (borba, 2005). assaf (2010) stated that firms pay attention mainly on creating value so as to make best use of their owners’ wealth.when financial performance is mentioned, it simply refers to the accomplishment of the company's financial performance for a specific time period, which covers the gathering and allocation of finance measured by capital adequacy, liquidity, solvency, efficiency, leverage and profitability. organizations that have ability to manage and control its own resources are said to be achieving its financial objectives (didin, jusni & mochamad, 2018). forensic accounting and financial performance in light of the prevalence of fraud around the world, forensic accounting or inquiry has been widely alleged or agreed as a tool that its practitioners can adopt gives ample specific details concerning financial crime (eliezer & emmanuel, 2015; efosa & kingsley, 2016). according to bhasin's (2016) claim, the increasing prevalence of financial frauds and auditing compelled the development of forensic accounting, with the primary responsibilities of forensic accountants being the prevention and detection of accounting and investigation-related frauds. it is agreed upon by okoye and gbegi (2013) that forensic accounting, often known as investigative accounting or fraud audit, is the merging of forensic science and accounting. a study by ekechukwu et al. (2018) found that "the management of an account with erroneous has remained a major concern to diverse partners" because it "reduces the benefits of firms or structures like those of higher learning and might lead to a decreased firm esteem emerging out of low profits to investors" (p. according to hopwood, leiner, and young (2008), "forensic accounting" (also known as "scientific accounting") is the application of accounting principles to the investigation and diagnosis of financial problems in a way that satisfies the standards required by official courts. there are a number of methods that may be used to identify accounting fraud, but due to its increasing popularity, forensic accounting is now considered to be one of the best and most thorough approaches (ahmed, 2017).in light of this, okoroyibo and omoregie (2019) evaluated how forensic accounting improved the efficiency of the nigerian banking industry. the data analysis showed that forensic audit has a substantial impact on the bottom line for some nigerian banks. after conducting some tests, it was discovered that forensic audit has a substantial impact on the net profit of nigerian banks. similarly, it was shown that forensic audit has a substantial impact on the retained revenue and dividend per share of nigerian banks. similarly, odelabu's (2014) research showed that forensic investigation and forensic litigation played a substantial role in explaining why commercial banks' financial performance fluctuated over time. since a proactive american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 62 www.americanjournal.org forensic accounting practise looks out errors, it has been speculated that most businesses nowadays use forensic accounting services as a means of reversing all financial leakages that create corporate failures in the public sector (odunayo, 2014). a similar study, conducted by okafor et al. (2022), found that data mining and computer aided audit techniques had a substantial impact on financial statement fraud at nigerian deposit money banks. empirical review deposit money banks (dmbs) in nigeria have been plagued by or threatened by financial crimes that have been studied by adesina, erin, ajetunmobi, ilogho, and asiriuwa (2020) to determine the efficacy of forensic audit in preventing further damage and maintaining dmbs' viability. twenty-two (22) of the country's deposit money banks (dmbs) were operational at the time of this study, so they used a survey design for their research. the primary data for this paper came from seventeen (17) of these banks, or 77.3%. the findings of the same study, which also employed the ordinary least squares (ols) method to analyse and test hypotheses, make clear that the involvement of qualified and experienced forensic auditors would not only contribute to the make public and decrease financial frauds in dmbs, but would also lead to much-needed sanity in the banking sector of nigeria. the author argued that regulatory agencies have a responsibility to mandate, within the bounds of the law, that all dmbs in nigeria create a specialised forensic department headed by a professional forensic personnel to oversee the establishment and frequent execution of successful and productive internal control, the timely prosecution of fraudsters as criminals to serve as a deterrent to others, and the work out of sufficient education and training opportunities. investigations into labour fraud in the nigerian state of anambra were the focus of research by okoye, nwoye, akuchi, and onyema (2020). in their paper, they employed both systematic random sampling and a cross-sectional survey methodology. with a sample size of 250, the authors of this report conducted an in-depth analysis of the investigative, prosecutorial, financial, accounting, and auditing personnel of state anti-corruption agencies. the questionnaire was the primary data collection tool, and descriptive statistics and the kruskal-wallis test were used to analyse the information obtained. their research showed that there is a solid correlation between forensic accounting procedures and public sector fraud detection, but that there is no commonly accepted forensic investigative methodologies for this purpose. they came to the same conclusion, namely that data mining techniques should be completely implemented in nigeria's public sector fraud detection. the influence of forensic audit on preventing and detecting fraud in the nigerian banking system was studied by uniamiogbo, adeusi, and amu (2019). the authors of this research tallied up the number of deposit money banks (dmbs) trading on the nigerian stock exchange (nse) as of december 31, 2016. for their work, they used a secondary data gathering technique by looking at the annual reports of the nigerian deposit insurance corporations (ndics) in 2013 and 2016. their research spans the five (5)years between 2012 and 2016 that they focused on. regression, pie charts, and tables were used to make sense of the secondary data mining that ensued. according to their findings, forensic auditing has a substantial deterrent effect on the incidence of fraud, the number of employees engaged in bank fraud, and the total amount of money stolen from banks in nigeria. however, the potential losses created by fraud operations in nigerian banks are not substantially affected by forensic audits. in order to combat systemic fraud and forgeries, the paper's authors advocated for a more robust implementation of forensic audits by nigerian banks. equally important, they argued that forensic audits in the nigerian american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 63 www.americanjournal.org banking sector should place special emphasis on uncovering the scope of fraud and the extent to which employees are complicit in it. at the end of their list of recommendations, they stressed the need of prioritising the well-being and compensation of employees, who they argued were the key to preventing fraud in any organisation, including nigeria's dmbs. using case studies of accounting businesses in nakuru county, kenya, ogutu and ngahu (2016) investigated how forensic accounting techniques could be used to reduce instances of fraud. the authors of the report remarked that forensic accounting has undergone rapid expansion in recent years, making it a crucial tool in the worldwide pursuit of detecting, preventing, and mitigating economic crime. fraud triangle and diamond theories provided the basis for their work. descriptive survey research was also employed, with the sample size cut down to only 25 accounting businesses. for this investigation, the authors used a questionnaire to compile their information. bar graphs, pie charts, and frequency distribution tables were used to examine the aforementioned data. the results showed that forensic accounting could be useful in a number of contexts, such as fraud investigation and detection; bankruptcy; insolvency and reorganisation; false or misleading financial statements; economic damage calculations; and family law conflicts. it also discussed the qualities necessary for success in the field of forensic accounting, such as analytic and auditing expertise, the ability to investigate and detect fraud, a solid sense of ethics, self-assurance, curiosity, and a healthy dose of scepticism. researchers were only able to identify potential areas of forensic accountant involvement, and their focus was confined to practice accounting firms. methodology this is an exploratory paper, which empirically examined the connection between forensic accounting and financial performance of tertiary institutions in port harcourt, rivers state. the paper adopted quasi-experimental research approach, and through a cross-sectional survey. as it implies, there are three main universities port harcourt aspect of rivers state in nigeria; thus, they university of port harcourt, rivers state university and ignatius ajuru university of education being an accounting and monetary based study, the paper adopted a non-probability sampling approach, and through which a judgmental sampling approach was used to determine the total number of samples; it adopted judgmental because only knowledgeable personnel of the bursary departments of the above institution were qualified to form our respondents. thus, only fifteen elements from each of the three universities were surveyed using our well structured self-administered copies of the questionnaire, which amounted to forty five (45) respondents for the study. the study aimed to investigate the connection between forensic accounting and financial performance of tertiary institutions in port harcourt, rivers state; therefore, product moment correlation coefficient was used for the analysis. results and discussion table 1: measurement model: reliability and validity for or, bc, t and a construct item loading cr ave α forensic auditing fa1 0.845 fa2 0.921 0.95 0.80 0.832 fa3 0.894 fa4 0.911 fa5 0.888 american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 64 www.americanjournal.org data mining dm1 0.899 dm2 0.847 0.94 0.77 0.793 dm3 0.798 dm4 0.901 dm5 0.931 financial performance fp1 0.894 fp2 0.911 0.96 0.82 0.817 fp3 0.944 fp4 0.891 fp5 0.893 source: smartpls result output the factor loadings of the observed variables (statement items) against their underlying (latent) factors ranged from 0.798 to 0.944, as shown in table 1 of the paper. since all of these statistics are greater than the recommended cutoff of 0.6, we can safely assume that they accurately measured the relevant latent variables. the cr, ave, and cronbach alpha () values were all also more than the recommended cutoff of 0.5 in every single case. our data have convergent validity because of all these factors. in accordance with standard practise, we examine the cronbach alpha () and pearson product correlation coefficients between the components to determine the validity of the instrument's ability to discriminate across groups. forensic auditing, data mining, and financial performance are all measurable via specific statement items in our research instrument, as demonstrated by our examination of these factors. table 2:forensic auditing and financial performance forensic auditing financial performance forensic auditing pearson correlation 1 .904** sig. (2-tailed) .000 n 45 45 financial performance pearson correlation .904** 1 sig. (2-tailed) .000 n 45 45 source: spss output, 2023 the first hypothesis was supported by evidence, with a p value of 0.05, suggesting a connection between forensic auditing and financial results. at r = 0.904 and pv = 0.000, the correlation coefficient between forensic auditing and monetary success is extremely high and statistically substantial. increasing forensic auditing was found to have aaffirmative effect on financial performance (r=0.904). the findings show that forensic auditing has aaffirmative and substantial effect on financial performance, and thus contributes substantially to the ability of tertiary institutions to preserve and sustain their market position, the level of administrative and academics' operation, and the degree to which they are american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 65 www.americanjournal.org dedicated to and have a solid presence of success. since pv (0.000) was lower than 0.05, the investigation could not accept the first null hypothesis table 3: data mining and financial performance data mining financial performance data mining pearson correlation 1 -.212** sig. (2-tailed) .964 n 45 45 financial performance pearson correlation -.212** 1 sig. (2-tailed) .964 n 45 45 source: spss output, 2023 null hypothesis two (ho2) was supported by insubstantial evidence (pv> 0.964) on the correlation between data mining and economic results. at r = -0.212 and pv = 0.964, the correlation between data mining and financial success is weak and inconsequential. this finding indicated that a -0.212 change in data mining output resulted in a corresponding -0.212 change in financial output. according to the findings, data mining has a negligible effect on financial performance, which contributes little to tertiary institutions' struggles to remain competitive, their low levels of operation and commitment, and their lacklustre success presence. thus, the second null hypothesis was accepted due to the pv (0.964) > 0.05 significance level. discussion of findings affirmative substantial connection between forensic auditing and financial performance first, h01 attempted to determine whether or not there was a correlation between forensic auditing and the fiscal health of colleges and universities in port harcourt, rivers state. the correlation study showed an affirmative and highly substantial connection (r=0.904) between the variables. that there was a substantial correlation between forensic auditing and the financial performance of tertiary institutions in port harcourt, rivers state, was tested, and the probability value (0.000) was lower than the level of significance (95%) of 0.05. the results back up the claims of earlier researchers that have studied the impact of forensic accounting on the nigerian banking sector, such as okoroyibo and omoregie (2019). their data analysis revealed that forensic audit had a substantial impact on the return on equity for several nigerian banks. it was also determined through experimentation that forensic audit has an impact on the net profit that banks in nigeria report. like retained earnings, dividends per share at nigerian banks were shown to increase after a forensic audit. odelabu's (2014) research showed that forensic inquiry and forensic lawsuits were similarly crucial to understanding the causes and effects of fluctuations in commercial banks' financial performance. since a proactive forensic accounting practise looks for mistakes, it is thought that most companies today use this service to help prevent business failures in the public sector (odunayo, 2014). american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 66 www.americanjournal.org adverse insubstantial connection between data mining and financial performance hypothesis two (h02) aimed at examine the substantial connection between datamining and financial performance of tertiary institutions in port harcourt, rivers state. this analysis revealed an adverse and weak in substantial connection between the variable (r= -0.212). the probability value (0.964) was higher than the level of significance of 0.05 (95%), therefore, ho2was accepted, that there was no substantial connection between data mining andfinancial performance of tertiary institutions in port harcourt, rivers state. this research contradicts the findings of okafor et al. (2022), who found that data mining has a substantial impact on the fraudulent use of financial statements at nigerian deposit money banks and that computer-assisted audit techniques have a similarly large impact on financial statement fraud at nigerian deposit money banks. conclusion the findings on the dimensions of forensic accounting (forensic auditing and data mining) contribute substantially and insubstantially affirmative and adverse towards achieving financial performance of tertiary institutions in port harcourt. a. the study concludes that a “solid and affirmative substantial impact” exists between forensic auditing and financial performance of tertiary institutions in port harcourt. b. the study concludes that a “weak and adverse in substantial impact” exists between data mining and financial performance of tertiary institutions in port harcourt. recommendations we propose the following changes based on the study's findings: a. a higher net profit margin can be achieved if management at educational institutions prioritises and expands its use of forensic methods. b. it is also suggested that the administration make an effort to keep up with the latest technical developments so that the institution may easily incorporate any necessary modifications into its established procedures. c. when fraud is discovered, proper sanctions need to be implemented. d. to reduce fraud, which has a beneficial impact on organisational performance, the study suggests that tertiary institution management place a greater emphasis on and investment in forensic audits and data mining. e. furthermore, it is recommended that the institution should put in place various types of fraud detection and prevention techniques provide training programmes for employees and educate them on how to detect and prevent frauds. f. also, attractive bonus schemes and incentives should be considered for academic and nonacademic staff to reduce if not eliminates employee’s opportunity to commit fraud. american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 67 www.americanjournal.org references 1. adesina, k., erin, o., ajetunmobi, o., ilogho, s., & asiriuwa, o. 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(2018). impact of forensic accounting and investigation on corporate governance in ekiti state. journal of accounting, business and finance research, 4(1), 28-36. doi: 10.20448/2002.41.28.36. http://www.forensicaccounting.com/ american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 69 www.americanjournal.org 36. popoola, o. m. j., che-ahmad, a., samsudin, r. s., & rushami, z. y. (2013), impact of task performance fraud risk assessment on forensic skills and mindsets: experience from nigeria. international journal of business and social sciences, 5(9), 216-224. 37. surroca, j., tribó, j. a., & waddock, s. (2010). corporate responsibility and financial performance: the role of intangible resources. strategic management journal, 31(3), 463490. 38. uniamiogbo, e., adeusi, a., & amu, c. (2019). forensic audit and fraud detection and prevention in the nigerian banking sector. accounting and taxation review, 3(3), 121139. 39. zia, t. a. (2016). development, delivery and dynamics of a digital forensics subject. dig forensics conf., 175. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 53 www.americanjournal.org the impact of strategic entrepreneurship orientation in enhancing business competitiveness (a case study in ibn majid company in basra governorate) liqaa mutter atti management technical college, southern technical university, iraq liqaa.mutter@stu.edu.iq adnan saad tuama al-sukaini management technical college, southern technical university, iraq adnan.saad@stu.edu.iq a b s t r a c t k e y w o r d s the research aims to identify the extent of the impact of the strategic entrepreneurship orientation on business competitiveness, and to reveal the extent to which the organization under discussion is able to employ the dimensions of the strategic entrepreneurship orientation in enabling it to be a key player in competing with its counterparts in the local and regional market. the company in question adopts strategic entrepreneurship to adapt to the changes taking place in the external environment, especially competitors, after the trend to the open market became for the private sector to take the lead in a market that is diversified in products and increased competition. the researcher used a questionnaire prepared for this purpose, consisting of two variables; the first is the independent variable, strategic entrepreneurship in its three dimensions (creativity, risk, initiative), business competitiveness came as a dependent variable with dimensions (quality, flexibility, delivery) for a sample of (100) person and using the statistical package (spss v.22). in analyzing the data, the study reached the most important conclusion, which is the research sample company's lack of two dimensions (creativity and risk) as basic foundations in strategic leadership, which made it lose the possibility of obtaining competitive priorities characterized by flexibility and the ability to adapt to environmental developments. introduction the use of the term entrepreneurial orientation is used for referring to the strategy making processes that lead to enhancing business competitiveness, therefore the study aims to reveal the opportunities that entrepreneurial oriented companies can through the use of proactive behavior in adopting a strategy to defend the competitive advantage against a number of competitors, especially after the market economy changed from protection policies to an open market economy where the private sector is encouraged to take the lead in economic development and the iraqi environment is considered a growing market as there are many opportunities that enable entrepreneurial companies to benefit from them. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 54 www.americanjournal.org the concept of orientation pioneering is the possibility of clarifying the mentality of competing companies in pursuing the development of their products, and this is very important for researching entrepreneurial activity and constantly researching within the manufacturing environment. the current study also attempts to achieve the essential objectives, perhaps the most important of which is to test the expected impact relationship between the dimensions of both strategic entrepreneurship and business competitiveness, as well as standing on the respondents awareness of the dimensions of strategic entrepreneurship and business competitiveness. in order to achieve the objectives of the current study, it was divided into four sections; the first section deals with the scientific methodology and previous studies, the second section is singled out for the theoretical side of the study variables, the third section is devoted to the practical field side, finally, the fourth section deals with the most important conclusions and recommendations. although the study achieved its objectives, there are some the challenges are as follows: (the first topic: the methodological framework of the research) the current study includes a detailed presentation of the scientific methodology, as it includes a number of basic paragraphs that serve as a map in determining the paths of study and managing the main lines. first research problem: adapting to the changes taking place in the market through aspects of entrepreneurship and innovation of successful products is a major concern for all companies, especially for small and medium-sized companies, and the dominance in most developing economies, including iraq, so that the ability of companies to keep pace with development in the external environment, which is characterized as a nondynamic stable environment is one of the most important problems and challenges facing these organizations, therefore, their ability to direct strategic entrepreneurship through creativity and initiative is one of the most important factors that help them anticipate the external environment and search for new opportunities, and their ability to compete with other organizations. according to what was mentioned above, the problem of the study can be formulated in following: what is the impact of direct strategic entrepreneurship in business competitiveness? in order to answer the previous problem, the following sub-questions were formulated: 1what is the interest of the researched sector in applying the strategic leadership? 2what is the level of availability of the dimensions of the strategic entrepreneurship orientation in the research sample sector? 3is there a relationship between strategic entrepreneurship orientation and business competitiveness in the researched sector? 4what is the nature of the influence relationship of the dimensions of strategic entrepreneurship orientation in business competitiveness? secondly research importance: the importance of the study stems from the importance of the variables that the study tries to review and research in depth and can be identified as follows: american journal of business management, economics and banking volume 15 august, 2023 p a g e | 55 www.americanjournal.org 1it was represented by the variables of the study, which directs strategic entrepreneurship and business competitiveness and directs the attention of administrative leaders towards the importance of these variables. 2trying to understand the importance of strategic entrepreneurship orientation in achieving business competitiveness in the researched sector 3the importance of the study is embodied in the sector that was researched, which is the industrial sector, which constitutes a basic pillar for economic development in the country. 4diagnosing the level of strategic entrepreneurship orientation in the researched sector. 5the possibility of benefiting from the results of this study to carry out future studies for different sectors and provide information that benefits higher managements about the importance of strategic entrepreneurship orientation in achieving business competitiveness. third: research objectives the study aims to achieve the following: 1detecting the extent to which strategic entrepreneurship can be directed towards achieving business competitiveness. 2diagnosing and analyzing the recent theoretical contributions to the subject of strategic entrepreneurship in achieving business competitiveness. 3analyzing the extent of the impact of strategic entrepreneurship orientation on achieving business competitiveness in the researched sector. 4improving the level of awareness of the researched sector in realizing the direction of strategic entrepreneurship and its impact on achieving business competitiveness and how to perform and thus increase its competitiveness. fourth: hypothetical research. in the light of the research problem and its objectives and within the theoretical and applied framework, the hypothetical scheme of the research was prepared, which expresses the causal relationships of the research, as shown in figure (1), and between the types of variables, which are as follows. the independent variable. strategic entrepreneurship is based on three sub-dimensions (creativity risk prowess). the dependent variable represents business competitiveness relies on three dimensions (quality flexibility delivery). figure (1) the hypothetical form of the study american journal of business management, economics and banking volume 15 august, 2023 p a g e | 56 www.americanjournal.org fifth: the research hypothesis. determining the problem of the study and looking at the relevant previous cognitive efforts, in the light of the dynamic relationship between the research variables and the hypothetical scheme, as well as the objectives of the study, the study has a main hypothesis, and a group of hypotheses branch out from it to measure the relationship between the dimensions of the strategic entrepreneurship orientation, which are as follows (there is a statistically significant correlation between dimensions of the direction of strategic entrepreneurship and the dimensions of business competitiveness) sixth: data collection methods and measurement tools. included data collection methods: 1the theoretical side: by looking at the scientific sources in the characteristic journals. in addition to letters, dissertations, books, as well as magazines and periodicals, these sources were employed in order to benefit from them in covering the theoretical side and as written in the list of sources 2the applied side: a. a questionnaire was employed to collect data related to the variables of the study. the test results, their validity and reliability are presented after being presented to a group of experts in the practical aspect of the research. b. adopting semi-structured personal interviews in the industrial sector in basra governorate with department and division managers in senior management to clarify what was stated in the questionnaire and respond to their inquiries. c. the official documents and records of the sector in question. seventh: research approach the study relied on the analytical descriptive approach, which is one of the most used approaches in administrative and social studies, which can produce logical and acceptable results and reach conclusions and recommendations. eighth: the research community and its sample. in the light of the research problem, and in order to test and apply its hypotheses and achieve the analytical goals of the research, the research sample was tested from the general manager and heads of departments and divisions in ibn majid company, whose number is (80) single in a comprehensive inventory method. ninth: statistical tools for research. the data is analyzed through the use of the program (spss v.22), which is one of the statistical programs that can be relied upon in analyzing the study data. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 57 www.americanjournal.org (the second topic. the theoretical aspect) first strategic entrepreneurship orientation 1. the concept of strategic entrepreneurship orientation or entrepreneurship is an old concept used for the first time in the french language at the beginning of the sixteenth century. management and organization theory is a phenomenon that emerges at the level of the organization and is particularly concerned with growth, innovation and the spirit of risk and is considered a means to enhance competitiveness at the global level and is often attributed to the behaviors of individuals and groups within the organization rather than just looking at it as actions issued by individuals who possess certain characteristics and attributes (qunce & whittakers: 2003-1-25) the entrepreneurial orientation is that organizations focus on the concept in the field of entrepreneurship and focus on the theoretical and experimental aspects and spread the philosophy of entrepreneurship at various administrative levels to face risks, anticipation and creativity by adopting the entrepreneurial approach (slevin & green: 2006:1-35) strategic entrepreneurship is also viewed as a group of opportunities that the organization is trying to obtain, as well as a group of opportunities that the management team is trying to realize and its convictions of the opportunities that it can seize (kygidon & hughs: 2010:46) and we find that most companies that have an entrepreneurial orientation it is the one that supports and clarifies entrepreneurial behavior with sufficient regularity for this behavior to become a specific organizational feature or characteristic (corin & wales: 2010:55). others believe that the entrepreneurial orientation is an organizational feature that permeates the company's management philosophies, decision-making practice, and its formation of organizational elements in addition to its strategic behavior. (welas & korem,2019:1-45) and based on the foregoing, it is possible to define strategic entrepreneurship as a strategic management philosophy adopted by departments through which you can seize opportunities that help the success of the organization and achieve its goals. 2dimensions of the strategic entrepreneurship orientation. there is a difference in the views of researchers and those interested in the dimensions of the strategic entrepreneurship(lumpkim & doss, 1996 ) identified several dimensions of resources and capabilities, strategic capabilities, entrepreneurship, the environment, and the organizational structure as for (kyrgidon & hughos,2010:46) they assert that it is (innovation, risk-taking, initiative), while (corin & wales, 2019:60) considers that they are two dimensions of independence and competitive aggressiveness, but we find that dependence on the three dimensions is on a large scale, as most points of view agree on the dimensions of corin & wales. acreativity the adoption of creative activities by organizations leads to the creation of value for the organization and helps in finding non-traditional solutions to problems and needs and creating meaningful changes in the capabilities and energies of the organization (coruona,2002:45) it can also be described as a set of methods for developing or adopting new activities, services or products (rere&etal :2012:3-40). american journal of business management, economics and banking volume 15 august, 2023 p a g e | 58 www.americanjournal.org brisks. it refers to that activity that aims to prevent losses that organizations may face, as risk represents a framework for the entrepreneurial approach that refers to venturing into the unknown without knowing the potential results, which involves investing in technology or entering unknown or pre-tested markets in addition to the financial risk that may it affects the organization (alderman: 2011:15-88) as it is described as venturing into the unknown, the possibility of loss, or enduring uncertainty (gunawan 2015:40). cproactive (initiative) it is the tendency of the organization to anticipate future needs and environmental changes through the use of new methods and modern technologies , and there are those who see it as the ability to anticipate and prepare in advance for the future. second: business competitiveness 1the concept of business competitiveness. senior management in the industrial sectors work to achieve competitiveness in their work through the foregoing operations, and we try to achieve the customer's needs or the value that the customer wishes to obtain by giving the customer everything he desires better than any other sectors, where competitiveness is defined as a process that companies seek from through it to excel in its business environment by owning and maintaining a competitive advantage, and this requires understanding the general framework of the company through the senior management that defines the needs and desires of the customer and how to deliver them, taking into account the rate of operational capabilities. 2dimensions of business competitiveness. senior management in industrial companies works to achieve their competitiveness through the products they provide that meet the needs and desires of customers or the value that customers wish to obtain from these products. therefore, with regard to the dimensions of business competitiveness, we find a kind of coincidence in the opinions of a number of writers about the most common dimensions that are each of them is an essential dimension for achieving competitive excellence for companies. therefore, the dimensions have been identified as follows: a. cost the main operational goal for companies is the lowest cost that compete through cost, and even companies that compete through competitive advantages other than cost, as they seek to achieve low cost for the products they produce ,from standing in front of competing companies and helping them reach competitive prices that enhance the competitive advantage of the company's products in the market, and that the company's lack of interest in reducing its cost may be the reason behind its deterioration or withdrawal from existing products and markets. b. quality companies always try to obtain the expected value that is commensurate with their message, and this requires defining customers’ expectations and desires for quality. customers want quality products that american journal of business management, economics and banking volume 15 august, 2023 p a g e | 59 www.americanjournal.org meet the characteristics required by them, which are the characteristics that they expect or see in advertisements. companies do not provide quality products that meet the needs and desires of customers. c. flexibility it is the company's ability to change operations to other methods, and this may mean changing the performance of operations, as well as changing the method and time of performing operations. the customer needs to change operations to provide requirements that are: 1product flexibility 2mix flexibility 3volume flexibility 4delivery flexibility. d. delivery explains that delivery is the basic basis for competition between companies in the markets by focusing on reducing lead times and speed in designing new products and presenting them to customers in the shortest possible time. it also confirms on three priorities for the post-delivery deal with time is: 1speed of delivery 2delivery on time 3rapid delivery. some prior knowledge efforts in this topic, we seek to present a number of previous studies, both arab and foreign, as previous knowledge efforts help in crystallizing the foundations for building the structural aspect of scientific research methodology, and at least some of these efforts in this field are presented. first arab studies the previous arabic studies that we were able to obtain, which are related to the research variables, are: 1entrepreneurship strategies and their role in achieving competitive advantage a field study on the telecommunications company in jordan: al-sakarna 2008 a model was developed in order to test the relationships between the independent and dependent study variable. the sample consisted of 140 department managers. the study concluded with several results, the most important of which is the existence of a statistically significant relationship between applying entrepreneurship strategies and achieving competitive advantage for telecom companies, and the existence of an influence relationship between the variables that occur in entrepreneurship strategies and competitive advantage, and the most important recommendations were the existence of a relationship between the dimensions of entrepreneurship and competitive advantage that must be relied upon by organizations. 2strategic entrepreneurship and its role in achieving competitiveness in industrial facilities a field study in the bashir siksik and partners company for the manufacture of sanitary ware: mahmoud 2021 the study reached a set of results, including the emergence of a clear interest from the industrial american journal of business management, economics and banking volume 15 august, 2023 p a g e | 60 www.americanjournal.org facilities of the study sample in the dimensions of strategic entrepreneurship in the field of finding available job opportunities and investing them in the market and the endeavor to take advantage of the conditions surrounding the establishment and its most important recommendations is the need for the establishment to pay attention to the dimensions of leadership. second foreign studies 1requirements for applying the strategic entrepreneurship as an entry point to enhana technical innovation: case study – palestine technical college – deiral – balah international journal of business and management inrention( alayoubi & alshbaki, 2020:1-17). the study, titled “requirements for the application of strategic entrepreneurship as an introduction to promoting technical innovation, targeted an analytical study for the palestine technical college, deir al-balah”. to identify the impact of the requirements for implementing strategic entrepreneurship in achieving innovation from the perspective of workers. the analytical descriptive approach was used. the study population included the academic and administrative staff in the college. the study used a questionnaire as a tool for the study; the study reached several results, the most prominent of which was the presence of a statistically significant effect between the requirements of implementing strategic entrepreneurship and achieving innovation for college. 2strategic entrepreneurship and performance of small and medium scale enterprises in metropolis archives of business research 6(9) 49-69 makinde &agu: 2018 the study came to strategic entrepreneurship and the performance of small and medium-sized companies in aba metropolis to confirm that strategic entrepreneurship has become the dominant one in the contemporary world. one of these problems, so the study came with the aim of identifying the impact of the entrance to strategic entrepreneurship on the performance of companies and adopted the survey approach. the study population included 231 owners / managers of small and medium companies, and a questionnaire was used. effective role on the performance of those companies and recommended obliging companies to adopt strategic leadership. (the third topic is the procedural framework) procedural framework (field): procedural framework a set of statistical tests will be used to analyze the data obtained from the research sample, including ensuring that the data is distributed normally, measuring the stability of the scale that was used by the researcher, leading to conducting descriptive statistics for the research variables, and finally using path analysis for the purpose of testing research hypotheses. as explained below: 1normal distribution of data the normal distribution, is also called the gaussian probability distribution, relative to its author, the german scientist carl goss, and it is a probability distribution used to describe random data, most of which tend to center around the average value of the variables, which appears in the probability density graph on the shape of a bell, according to the gaussian function, which is thus called the bell curve. the purpose of this analysis is to ensure that the data is normally distributed and not dispersed, as the (one-sample kolmogorov-smirnov test) test was used to ensure that the variables were subject to a american journal of business management, economics and banking volume 15 august, 2023 p a g e | 61 www.americanjournal.org normal distribution. as this, the procedure is a statistical test that compares the distribution of a statistical population through two independent samples taken from this population. it can be used to see if the data distribution is normal or not, and generally we conclude that the variable is not normally distributed in the “sig” state. <0.05. when analyzing the data, the paragraphs were normally distributed as shown below table (1): normal distribution test (one sample kolmogorov-smirnov test) variables strategic entrepreneurship business competitiveness test statistics .221 .411 asymp. sig (2-tailed) 0.025 0.030 2reliability of the study scale consistency refers to how consistent a method is in measuring something. if the same result can be achieved consistently using the same methods under the same conditions, the measurement is considered reliable i.e. stable. this test was used for the purpose of ensuring the stability of the questionnaire through the use of (cronbach's alpha) analysis, which means that the questionnaire carries understandable and accurate information, and this is what makes the individuals' answers have little variation. one of the conditions for this test is that the results should be greater than 70% to be considered internally consistent and stable (pallant, 2011:100), as shown in the table below: cronbach's alpha variants. table (2): the factor of the reliability of study scale (source: made by the researcher using outouts of spss v.22) variables cronbach’s alpha strategic entrepreneurship .884 business competitiveness .892 3descriptive statistics and correlation: coefficients descriptive statistics is a brief description of a large set of data or a group of methods used to facilitate the quantitative description of the main characteristics of the data by using tables and charts to facilitate their understanding by the user. describing, organizing, classifying, summarizing and displaying a set of data in a clear manner in the form of tables or graphic figures, and calculating the various statistical measures to describe a variable (or more) in a given population. thus, the arithmetic mean and correlation coefficients were extracted between the two variables shown in table no. (3), which it was tested on a sample of employees at ibn majid company. at the level of significant significance (0.01). table 3: means, standard deviations, and relations between variables variables mean s.d. strategic entrepreneurship business competitiveness strategic entrepreneurship 3.28 0.434 1 business competitiveness 3.93 0.511 0.676 1 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 62 www.americanjournal.org it is clear from the above table that there is a linear correlation between the variables of the study, as we conclude that increasing the level of using strategic entrepreneurship has a significant positive impact on increasing the level of business competitiveness, which plays a vital role in spreading the sustainability of the company and improving its organizational image. 4hypothesis testing hypothesis testing in scientific research is one of the inferential statistical methods, where sample data representing the study population is used in order to test the hypothesis, evaluate its reasonableness, and issue a specific judgment. hypothesis testing in scientific research depends on the experiment or sample being studied, and the test result is statistically significant. hypothesis testing in scientific research aims to analyze the sample in order to deduce information that reflects the community, and then helps in making correct decisions. for the purpose of testing the previously formulated hypotheses, path analysis was chosen, which aims to find the direct and indirect effect between variables and linear relationships, as shown in table (4) and figure (2) below: table (4): testing the hypothesis of the study direct effect hypothesis estimate s.e. c.r p label strategic entrepreneurship business competitiveness .859 .011 36.27 0.001 accepted figure (2) the relationship of the direct effect of the main hypothesis based on what was mentioned in the above table and figure, it is clear that the first hypothesis between strategic entrepreneurship and business competitiveness, which is estimated at (.859), has been accepted, as the results show that there is a direct impact of strategic entrepreneurship towards business competitiveness, and this is what makes the hypotheses acceptable. (the fourth topic is the conclusions and recommendations) conclusions: 1the presence of interest from the research sample company in terms of its support for the development of its capabilities that support its entrepreneurial ability in a manner that is reflected in its competitive position. 2-the ability of the researched company to avoid the problems it faces in various fields of work, by constantly renewing its ideas, keeping abreast of all developments in its surrounding environment, and keeping abreast of what is new in its field of work. business competitiveness strategic entrepreneurship e11 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 63 www.americanjournal.org 3-the results of the research proved that the researched company lacks the two dimensions of creativity and risk as basic foundations for the independent variable (strategic entrepreneurship), and this is reflected negatively on its competitiveness. 4-the results of the research showed the existence of a positive statistically significant influence and correlation between strategic entrepreneurship and the competitiveness of the researched company, as the value of this correlation between the two variables reached (0.68), while the impact relationship of strategic entrepreneurship in competitiveness reached (0.86), and this indicates that an increase in strategic entrepreneurship in the amount of one unit leads to an increase in the competitiveness of the business according to the relationship of influence and connection. recommendations: 1the need to increase the level of focus of the researched company on areas related to strategic entrepreneurship in a way that enables it to maintain and increase its competitiveness. 2the need for the company in question to be interested in the field of research and development, which is reflected in its keeping pace with modern ideas and continuous developments in the environment in which it operates. 3increasing the level of interest of the researched company in the aspects of creativity and creating a level of importance among the employees of the company regarding the importance of the risk element in a way that supports its strategic entrepreneurship position, which ultimately leads to improving its competitive position 4invite the researched company to make more efforts and pay attention to adopting modern practices of strategic entrepreneurship in order to increase its competitive position in the environment in which it operates. sources arabic sources التنافسية دراسة ميدانية في شركة )استراتيجات الريادة ودورها في تحقيق الميزة 2008بالل ،خلف السكارنة • االتصاالت في االردن ،عمان ،االردن ،دار الثراء للنشر 1تقنيات ونظمم معاصرة في ادارة العمليات .ط 2008غسان قاسم الالمي • foreign sources 1. alayoubi،m.alshobaki،m&abu-naser.s .2020 (requirements for applying the strategic entepreurship as an entry point to enhance technivcal innoration case study –palestine technical college deiral –balah international journal of business and management invention 9(3) 1-17 2. alderman،d:.2011(entrepreneurial orientation )21eastern white pien primary producers and secondary manufacturers aregional phenomanon ?17th central hardwood forest conferers . 3. caruona ،m:2002(effect of same enviromental challenges and albert centralization on the entrepreneurial orientation and performance of tries rnal of service ladus ،jou public sector entities vol22،no2. 4. chase،r.،aquilano ،n&jacobs،r.2007 (orientation management for competitive advantege 11 th ed -mcgraw-hill-inc new york american journal of business management, economics and banking volume 15 august, 2023 p a g e | 64 www.americanjournal.org 5. corin .g&wales.s:-2019(astudy on the relation ship of entrepreneurial orientation and business performance in the smes of kurunegala district in srilanka . 6. evans&collier-2007(orientation management an integrated goods and servies ،approach،thomson ،south western.u.s.a studentedition www.swlearing.com 7. gunawan،m:2015(network ties and entrepreneurial orientation ) :innovation performance of smes inadeveloping country. 8. jantun ،a،punm،k،sarenketo،s،helko،k:2005(entrepreneurial orientation،dyamic capabities and international performance ،journal of international p226_vo1-3no6 . 9. jeffrey g -journal of sales growth rate relation ship -tation orien entrepeneurship theory and practice .v01-22 no 3 . 10. krajewsky ،l.&ritzman,l-(2005. (orientation management)7th ed،prentice hall-new jersey p62 11. kyrgidon،l.p.&hughes .m:-2010(strategic entrepeneurship : origins،cove element and research directions) .european .business review .22 (1) p46 12. lumpkins،e&doos،t:-1996(clarifying the entrepreneurial orientation construct and linking to performanyutyce ) 13. macmillan،h&tompo،2000(strategic management process ،content،and implementation:great britain :oxford university press p88 14. makinde،g& agu،c-2018(strategic and performance .of small and medium scale entr prises in aba metropolis-avchires of business research 6p49-69 . 15. quince،t&whittakers،h:-2003(entrepreneurial orientation and entrepreneurs intentions and objectioves،esrc centr for business resarch university of combridge ،working) paper،no271-p1-25. 16. slact،nigel،chambers.stuart.harland christine،harrstons،alan and johnston،robert-2004(orientation management)4 hd،prentice.hall:new york p44 17. slevin،p،d&green،m،k:-2006(strategic process effects on the enterepreneurial ) 18. williams،c .2007 (management)،6thed cengage learning south –western p38. http://www.swlearing.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 65 www.americanjournal.org green factor of economic growth in uzbekistan (problems and prospects) saidkamolkhon bakhodirov, student at school #43 a b s t r a c t k e y w o r d s the article discusses the features, problems and prospects of the green factor of economic growth in uzbekistan, analyzes international experience in the transition to a green economy, and also describes the main directions of development of the green economy in the republic of uzbekistan. green factor, green economy, industry 4.0, green investments, green technologies. introduction: the methodology of this article uses methods of observation, generalization, grouping, comparative analysis, and theoretical interpretation. in addition, the scientific basis of the article is made up of international standards and regulatory documents, information from research by scientists in domestic and foreign scientific publications. one of the significant features of the beginning of the 21st century is the fourth industrial revolution (industry 4.0), which implies fundamental transformations in the production sector based on new generation information technologies. however, an important characteristic and significant difference between the new industrial revolution and the previous ones is the rapid increase in the relevance of environmental and climate problems, which can rightfully be considered as a “green” factor in the development of the world economy. analysis and results climate change and its consequences are priority challenges and threats to the global sustainable development of the world economy and the well-being of the world's population. this problem affects important sectors of the economy, such as agriculture, energy, infrastructure and healthcare, which in turn negatively affects the growth rate of gdp, economic modernization and, ultimately, the environmental and national security of the country. according to a report by the swiss re institute, the global economy could shrink by 18% over the next 30 years. in particular, under a worst-case scenario of a 3.2°c temperature increase, china could lose almost a quarter of its gdp (24%) by mid-century. in the us, canada and the uk, losses will be about 10%. europe will be slightly more affected (11%), while countries such as finland or switzerland are less at risk (6%) than, for example, france or greece (13%). to achieve green and sustainable economic growth, the world community is actively implementing strategies and measures to combat climate change and its negative consequences. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 66 www.americanjournal.org 1. paris agreement. at the 21st session of the conference of the parties to the un framework convention on climate change on december 12, 2015 in paris, 196 countries adopted an agreement on climate change, the goal of which is to keep the increase in global average temperature to 1.5 degrees celsius. the agreement entered into force on november 4, 2016. 2. the 2030 agenda for sustainable development. in 2015, world leaders from all countries adopted the 17 sustainable development goals for 2030 proposed by the united nations. the program includes: 17 goals, 169 targets and 230 indicators aimed at ending poverty, reducing inequality and protecting the planet. the program is viewed through the lens of three pillars: social inclusion, economic growth and environmental protection; and is based on five critical dimensions: people, prosperity, planet, partnership and peace, also known as the 5ps. most countries in the world are gradually making the transition to a green economy, where ecology is the engine of progress. the concept of green economy has emerged in the last two decades and is closely related to the concept of sustainable development. practice proves that sustainable economic growth is the only source of increasing income and, accordingly, investment to eliminate accumulated environmental damage, “green” modernization of production, which helps to increase the productivity of primary resources and, consequently, reduce the resource intensity of the economy and the load on life-supporting environmental ecosystems. the term «green» economy was first coined in 1989. although there is no single definition of a green economy, there is a general understanding that it means an economy that improves human well-being and social equality by significantly reducing environmental risks and the scarcity of environmental resources. and aims at sustainable development without environmental degradation. at the end of 2019, the eu launched the european green deal plan, which aims to achieve carbon neutrality by 2050. achieving this goal will require concerted action from all sectors of the eu economy, including: • investing in environmentally friendly technologies • support for industry to introduce innovations • introducing cleaner, cheaper and healthier modes of private and public transport • decarbonization of the energy sector • increasing the energy efficiency of buildings • working with international partners to improve global environmental standards. the european green deal also includes an interim target of reducing greenhouse gas emissions from 40% to at least 55% by 2030 (compared to 1990). for this purpose, a road map was adopted – the main document defining the main directions and actions of the eu for the transition to climate neutrality. it outlines the investments needed and available financing tools and explains how to ensure a fair and inclusive transition to help those most affected by the transition to a green economy. the green deal covers all sectors of the economy, especially transport, energy, agriculture, and construction. the republic of china, as one of the world powers, has also made significant progress in environmental issues. in recent years, in china, solving environmental problems has become part of the priorities of the state, which has developed a set of legislative, political, regulatory and economic initiatives. during his speech at the 75th session of the un general assembly, chinese president xi jinping said that china intends to “peak co2 emissions by 2030 and achieve carbon neutrality by 2060.” it should be noted that today china is the world's largest consumer of energy and produces more than a quarter american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 67 www.americanjournal.org of all carbon emissions every year, which makes the country one of the leaders in environmental pollution. however, the intensity of carbon dioxide emissions in china in 2020 decreased by 18.8% compared to 2015 and by 48.4% compared to 2005. also, at the end of october 2021, the installed capacity of renewable energy sources in china reached one thousand gigawatts – one terawatt. this is twice as much as at the end of 2015. the share of renewable energy sources in the national energy mix reached 43.5%, an increase of 10.2% compared to the end of 2015. uzbekistan is among the countries most vulnerable to climate change. in the near future, an acceleration in the rate of temperature rise and drought is expected throughout the country, and mainly in its western part. our country is also implementing comprehensive measures to develop a “green economy”, which are aimed at modernizing and diversifying basic sectors of the economy, as well as balanced socioeconomic development of territories. work in this direction began at the beginning of 2020, after the approval of the “strategy for the transition of the republic of uzbekistan to a green economy for the period 2019-2030” in october 2019. during the development of the strategy, the following problems were identified that impede the achievement of goals and objectives in the field of sustainable development of the country: 1. accelerated industrialization and population growth significantly increase the economy’s need for resources, and also increase the negative anthropogenic impact on the environment and the growth of greenhouse gas emissions; 2. low level of energy efficiency of the economy; 3. irrational consumption of natural resources; 4. slow technology update; 5. weak participation of small businesses in the implementation of innovative solutions for the development of a “green” economy. the strategy identified the main objectives of the transition of the republic of uzbekistan to a “green” economy: • increasing the energy efficiency of the economy and rational consumption of natural resources through technological modernization and the development of financial mechanisms; • inclusion of “green” criteria based on advanced international standards in priority areas of public investment and expenditure; • assistance in the implementation of pilot projects in the areas of transition to a “green” economy through the development of government incentive mechanisms, public-private partnerships and intensified cooperation with international financial institutions; • development of a system of training and retraining of personnel related to the labor market in the “green” economy, by stimulating investment in education, strengthening cooperation with leading foreign educational institutions and research centers; • taking measures to mitigate the negative impact of the environmental crisis in the aral sea region; • strengthening international cooperation in the field of green economy, including through the conclusion of bilateral and multilateral agreements. among the target indicators for the implementation of the strategy are: • reduction in specific greenhouse gas emissions per unit of gross domestic product by 10% from the 2010 level; • doubling the energy efficiency indicator and reducing the carbon intensity of the gross domestic product; american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 68 www.americanjournal.org • further development of renewable energy sources, bringing their share to more than 25% of the total electric energy generation; • ensuring access to modern, inexpensive and reliable energy supplies for up to 100% of the population and economic sectors; • modernizing the infrastructure of industrial enterprises, ensuring their sustainability by increasing energy efficiency by at least 20% and increasing the use of clean and environmentally friendly technologies and industrial processes. in march 2021, an international online forum “towards new opportunities: green recovery of uzbekistan after the covid-19 coronavirus pandemic” was held, which determined mechanisms for the transition of the republic of uzbekistan to a green economy. the forum presented a brief overview of the analytical note “green recovery and uzbekistan’s transition to a green economy” prepared by the un development program. the document identified and analyzed priority sectors for green recovery, their opportunities and challenges. a list of priority “green” strategies, measures and practices that could contribute to the practical implementation of the national green economy strategy was also presented. plans and tasks as part of the paris agreement, uzbekistan reaffirms its commitment to reduce greenhouse gas emissions per unit of gdp by 35% by 2030. to achieve these goals, uzbekistan has adopted a strategy for the transition to a green economy for 2019-2030. as a result of implementation, it is expected to double the energy efficiency indicator, further develop renewable energy sources, bringing their share to more than 25% of the total electric energy generation, modernize the infrastructure of industrial enterprises, ensure their sustainability by increasing energy efficiency by at least 20% and more application of clean and environmentally friendly technologies and industrial processes. uzbekistan has a high technical potential for producing energy from renewable sources, of which about 97% comes from solar energy. the solar generation potential ranges from 525 to 760 billion kwh. this is due to the fact that the number of sunny days per year is 320 days and the number of hours of active sunshine is on average 3,000 hours. by 2026, it is planned to increase the share of “green” energy to 8 thousand mw, which will reduce carbon dioxide emissions by 5 million tons. by 2030, the energy efficiency of the economy is planned to double, and the share of renewable energy to at least 25%. today we can talk about the dynamics of reducing emissions into the atmosphere. according to the state statistics committee, if in 2014 in uzbekistan the volume of emissions of harmful substances into the atmosphere exceeded 1,162 thousand tons, then in 2021 this figure amounted to 909 tons. conclusion and offers among the main areas of development of the green economy in the republic of uzbekistan, which need to be paid attention to first of all, we can highlight: 1. motivate the country's population to purchase environmentally oriented goods, encourage businesses that rely on green technologies. as practice shows, business is the locomotive and leading force in the development of everything practical and energy-saving. it is important for entrepreneurs to explain and show the benefits of introducing energy-saving technologies. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 69 www.americanjournal.org 2. introduction of clean technologies. the concept of “clean technologies” includes five groups of technologies: • renewable energy sources (photovoltaics, wind energy, biomass, biofuel, biogas, solar thermal energy) and alternative energy; • environmentally friendly transport (alternative fuels, hybrids and electric vehicles); • electrical energy management systems (energy saving, smart energy systems, energy efficiency); • management of emissions, waste, transportation, collection, waste disposal and recycling; • innovative modern materials and technologies (biological technologies, nanotechnologies, environmentally friendly materials). the use of accessible, inexpensive green technologies in energy, water and land use is an urgent task on the path to creating a green economy. the dissemination of green technologies will significantly simplify government programs for the sustainable use of water resources, reduce the burden on natural ecosystems, reduce public costs and improve the quality of life of the population. 3. application of green investments. although green finance as a segment of the financial market is still in its infancy, financial instruments such as green loans, green bonds, green investment funds and green stock indices are showing rapid development. according to expert estimates, by 2030, about $93 trillion will be allocated worldwide for the implementation of “green” projects, which requires the widespread use of appropriate financial instruments. references 1. resolution of the president of the republic of uzbekistan “on approval of the strategy for the transition of the republic of uzbekistan to a green economy for the period 2019 – 2030” dated october 4, 2019 no. pp-4477 2. the swiss re institute (2021). world economy set to lose up to 18% gdp from climate change if no action taken, reveals swiss re institute’s stress-test analysis 3. transforming our world: the 2030 agenda for sustainable development. united nations, 2015. 4. porfiryev boris nikolaevich “green” factor of economic growth in the world and in russia // problems of forecasting. 2018. no. 5 (170). url: https://cyberleninka.ru/article/n/zelenyy-faktorekonomicheskogo-rosta-v-mire-i-v-rossii (access date: 01/10/2022). 5. policy brief: green recovery and transition to a green economy in uzbekistan. 2021. 6. “european union – central asia: cooperation in the field of water resources, environment and climate change” (wecoop).https://wecoop.eu/ru/glossary/green-deal/ 7. press office of the state council of the people's republic of china. white paper: china's response to climate change: policies and actions. 2021. 8. shermukhamedov, a. t. development of a green economy in uzbekistan / a. t. shermukhamedov, b. m. kholboev // progressive technologies and processes: collection of scientific articles of the 7th all-russian scientific and technical conference with international participation, kursk, 24 –september 25, 2020. – kursk: southwestern state university, 2020. – p. 177. 9. communication from the commission. action plan: financing sustainable growth. https://eurlex.europa.eu/legal-content/en/txt/?uri=celex:52018dc0097. https://cyberleninka.ru/article/n/zelenyy-faktor-ekonomicheskogo-rosta-v-mire-i-v-rossii https://cyberleninka.ru/article/n/zelenyy-faktor-ekonomicheskogo-rosta-v-mire-i-v-rossii https://wecoop.eu/ru/glossary/green-deal/ american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 10 www.americanjournal.org ways to reduce risks affecting the increase of enterprise income sadullayev oybek turdiali ugli tashkent state university of economics a b s t r a c t k e y w o r d s in this article, the types of risks affecting the income of enterprises, the factors of their occurrence and different approaches to prevention are proposed. in addition, the concept of “revenue-factors-risk-revenue” impact has been developed to minimize the risks affecting the income of enterprises. enterprise income, risk, types of risk, financial risk, market risk, liquidity risk, differential marketing strategy, smart methodology, bia method, “income-factors-risk-income” concept. introduction the main indicator summarizing the financial results of economic activity in all types of enterprises is profit (income). after paying taxes and other payments to the budget, the profit (revenue) (net profit) remaining in the enterprise is completely at its disposal and cannot be withdrawn in cases other than those provided by law. the enterprise, unless otherwise provided for in the charter, independently determines in which areas the net profit (income) will be used. a part of the net profit shall be transferred to the members of the labor team of the enterprise in the cases stipulated by the legal documents or the charter of the enterprise. the production of food products as part of the manufacturing industry in our republic has been increasing in recent years. “ensuring food safety is a guarantee of ensuring the independence of uzbekistan and socio-economic and political stability in the country. it's no secret that natural disasters, lack of water for irrigating the land, and drought are making it difficult to grow food products. as a result, there is an increase in prices in the world food markets. of course, this situation has a negative effect on us as well”. review of the literature many studies have been conducted on identifying and preventing risks that affect the income of enterprises. in these studies, the impact of risks on the income of enterprises, their types and consequences are analyzed. in addition, financial risks are widely covered as the biggest types of tests that affect the income of enterprises. in the research conducted, it is mentioned what the effects of the risks lead to. for example, “risk management has always been an important tool in running any business, especially when the market is down. in any economic environment, an unexpected event can wipe out a business in one fell swoop if a proper risk management strategy is not in place to prevent or at least reduce that risk”. in further studies, the authors point out that any source of income is american journal of business management, economics and banking volume 28 september 2024 p a g e | 11 www.americanjournal.org necessarily affected by risks and that it is necessary to always be prepared for it. “financial risk is often unavoidable in business. sometimes it is even recognized as a necessary condition for achieving the desired benefit. this paradox highlights the diversity of financial risks and their sources, and emphasizes the need for business leaders to understand the financial risks specific to their companies, regardless of their size. even companies with the most thoughtful and strategic business leaders face factors beyond their control (such as macroeconomic changes and political turmoil), making it even more important to identify and prepare for predictable risks”. analysis and results risks that affect the income or profit of enterprises appear in different guises. in general, they can be divided into two large classes: internal and external. external risks are beyond the control of the enterprise. these include, but are not limited to, interest rates, exchange rates, politics and weather. internal risks are within the control of the enterprise and include data breaches, non-compliance, lack of insurance, too fast growth, etc. below are some areas that can help manage the risks that arise through enterprise profits. figure 1. directions that help manage risks that affect the company’s profits let's briefly touch on each direction listed above: the first is the priority given to the benefit of the enterprise. the first step in creating a risk management plan should always be prioritizing risks and threats. this can be done using a somewhat universal scale based on the probability that each risk will occur: mass marketing strategy is aimed at developing a single enterprise program for all segments of the market. in other words, it includes the provision of enterprise services to customers of all consumer groups. most often, it is used in cases where the enterprise services market is characterized by its homogeneity. “the main advantages of using a mass marketing strategy are low marketing costs and the ability to attract and serve new customers from different segments”. it is necessary to implement a differential marketing strategy to prevent risks affecting the income of enterprises: priority buying insurance limitation of liability implement a quality assurance program restrict highrisk clients growth control appointment of risk management team american journal of business management, economics and banking volume 28 september 2024 p a g e | 12 www.americanjournal.org figure 2. stages of implementing a differentiated marketing strategy the overall digital marketing strategy of enterprises against risk should be linked to a clear goal a more specific and goal-oriented mechanism than “direct development of the enterprise” or “digitalization of production” should be implemented. one of the best ways to set marketing goals is to use the smart methodology. this acronym means that the goal should be: figure 3. smart methodology for implementing digital marketing in enterprises by working with each letter, it is possible to set goals that will help digital marketing move in the right direction while avoiding risks affecting the company’s bottom line. the most important aspect of this methodology is that each step is timed. all the goals that need to be implemented should be implemented based on the principle of “goal-implementation-analysiscalculation of the result-achieving the intended goal”. financial risk is a general term for risks that can have negative business consequences, such as reduced profitability, loss of capital, cash flow difficulties, and business closures. risk and reward are directly related: the greater the potential risk, the greater the potential reward. however, unlike high rollers, company executives have a fiduciary responsibility to protect their company and its members from excessive exposure to financial risk. increasing the controlled share of the enterprise in the competitive market anticipate the requirements of the company's customers for the product development of enterprise products that are more convenient for customers and of better quality delivering products to customers on time within agreed deadlines determining the level of income and expenses, taking into account the competition maintaining the company's reputation in front of customers smart time-bound relevant specific measurable attainable american journal of business management, economics and banking volume 28 september 2024 p a g e | 13 www.americanjournal.org companies can choose a specific approach depending on the type of financial risk or combine several approaches to eliminate the risk. the financial risk mitigation listed here is based on a variety of approaches. the first is insurance, that is, by insuring the compan’s income, it increases the possibility of preventing risks affecting itself. insurance is a method of transferring part of the financial risk to a third party. it is convenient to pay unexpected losses and thus preserves the capital of the enterprise. however, it is important to remember that insurance policies incur premium costs, and while claim proceeds may help recover funds, they do not eliminate risk or failure. there are dozens of business insurance policies that cover all types of financial risks, including product liability, crime, commercial property claims, workers’ compensation, business interruption, and cybercrime. the second is to evaluate this efficiency. the higher the efficiency of the enterprise, the less the risks affecting their income. all indicators of the enterprise are used in the evaluation of efficiency. the fact that these indicators are positive or not lower than the established criteria allows to assess the market position of the enterprise as competitive. the third is to maintain the company’s reserve funds. building cash reserves is one way to prepare for exposure to financial risks. along with insurance, emergency funds help reduce financial losses and save income. emergency funds can be created internally through positive cash flow or in the form of an existing line of credit. in both cases, advance planning is essential. the fourth area is investment in quality assurance. if the enterprise wants to improve the quality of its products, it is necessary to attract investment in order to import new technologies and develop production. implementing rigorous quality assurance measures to ensure that products and services meet desired quality standards is one way to reduce financial risks associated with products. checklists, checkpoints, sampling and monitoring during the production process help to achieve better results. businesses cannot eliminate all financial risks, but they can actively manage the risk-return dynamic. “understanding, monitoring and mitigating financial risks is an important step towards increasing business success. minimizing financial risk means having plans and processes in place to reduce, distribute, or prevent potential loss of revenue or capital, cash flow disruptions, and business closures”. the approaches discussed above help minimize the financial risks that affect companies’ earnings, including credit, liquidity, leverage, market and growth risks. access to high-quality, timely information to support planning and decision-making is key. all business ventures involve an element of risk, which means risk mitigation should be an integral part of any entrepreneur’s plan. income at risk is an area that requires special attention. by identifying the main risk factors of income, the impact on the income of the enterprise can be reduced. revenue risk refers to any potential situation that may adversely affect the future earnings of the enterprise. this includes internal business decisions it makes, as well as forces beyond the company’s control, such as broader market conditions. it is important to reduce revenue risk in order to avoid the situation of receiving less than planned revenue, as this can affect the entire financial plans of the enterprise and future growth opportunities. income risk is a subcategory of financial risk. financial risk covers any loss of profits or funds over time, resulting in the stakeholders losing their investment. inadequate cash flow due to reduced revenue can even lead to business failure, so managing revenue risk is critical. american journal of business management, economics and banking volume 28 september 2024 p a g e | 14 www.americanjournal.org conclusions and suggestions based on the analysis, the methods used to prevent risks affecting the income of enterprises, the methodology of their application, and the implementation mechanisms were developed: 1. a series of guidelines have been developed to help manage risks affecting the profits of enterprises. 2. it is necessary to widely use new technologies, i.e. the process of digitalization, to prevent the risks that come to the surface by increasing the production volume of the enterprise. for this, it is necessary to establish digital marketing activities in the enterprise. it was recommended to use the differential marketing strategy, which is widely used today. 3. the stages of implementation of the smart methodology of implementation of digital marketing in enterprises were developed. 4. enterprises can choose a specific approach depending on the type of financial risk or combine several approaches to eliminate the risk. the reduction of financial risk affecting the income of enterprises is based on different approaches and the stages of their implementation were proposed. references 1. solodov a.k. fundamentals of financial risk management: textbook and teaching aid // solodov a.k. m .: published by alexander k. solodov // technical editor solodova e.a.; proofreader neits e.a. // 2017 24.0 p.p., 286 p 2. https://www.gazeta.uz/uz/2023/06/21/not-working/ 3. https://senat.uz/oz/articles/post-948 4. there.https://www.investopedia.com/articles/personal-finance/072315/top-ways-managebusiness-risks.asp https://www.gazeta.uz/uz/2023/06/21/not-working/ https://www.investopedia.com/articles/personal-finance/072315/top-ways-manage-business-risks.asp https://www.investopedia.com/articles/personal-finance/072315/top-ways-manage-business-risks.asp american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 150 www.americanjournal.org analysis and measurement of the impact of foreign direct investment on the gross domestic product in iraq for the period 2004-2022 susan fawaz abdel-wahhab al-dabbagh prof. dr. muhammad bloza college of business administration american university for culture and education a b s t r a c t k e y w o r d s the research aims to measure and analyze the resulting impact on foreign direct investment through the solutions that must be taken in a positive way for economic development in iraq. model explanatory (r2 = 0.872016), and the value of d-w was (2.023146), meaning that the model is devoid of correlation. the f-statistic value also reflected the significance of the model as a whole, which is less than (5%). the shortterm results showed that foreign direct investment as an independent variable has succeeded in proving its significant and positive impact on the gdp index (y1), but in the long term, if (investment foreign affairs) has succeeded in stabilizing its positive and moral impact in the indicator of the local product, and the research is recommended to the decision maker the field of the field for the foreign investment. and fighting the administrative and financial corruption, working to achieve stability and stopping conflicts and conflicts political and partisan quotas, since these matters are among the determinants of the investment climate, in addition to rationalizing unnecessary government spending and directing it towards the construction of infrastructure. foreign direct investment, gross domestic product introduction foreign direct investment is one of the economic and financial phenomena that spread widely in the nineties of the twentieth century and still receives great attention for a long period of time, and this interest has increased significantly in recent years for several reasons, including the strong links between foreign direct investment and trade internationally and in multiple ways for a purpose serving global markets. foreign direct investment is an important source of one of the most important international sources for financing economic activities for the economic development process, especially in developing countries, including iraq, whether in the field of international trade or in the field of foreign direct investment, and it has an important role in advancing economic development, which is considered a form of forms of financial flows the private medium-term and long-term, and the increased interest american journal of business management, economics and banking volume 15 august, 2023 p a g e | 151 www.americanjournal.org and greatly in foreign direct investments by the arab countries, including iraq since the early eighties as a result of the decline in loans provided to them in the wake of the escalation of the external debt crisis . this study gains its importance from the importance of economic development, which occupied a large place of interest of economic researchers at the present time, as the skills and competencies possessed by the human element play a fundamental role in the process of economic development, because the lack of such skills that must be developed is a problem. it has negative dimensions impede the achievement of success in the process of economic development study problem : the problem of the study is summarized in the insufficiency of financial resources and local capital to finance economic development in iraq due to administrative and financial corruption. the iraqi economy suffers from insufficient financial resources available to finance the investments required to achieve a certain level of growth. questions raised about the problem they are: what is foreign direct investment and economic development? how is foreign direct investment developed during the study period? the importance of the study: the importance of the study lies through the role of foreign direct investment, as it is an important factor in external financing, as well as in solving some sectorial problems of the iraqi economy, as it is linked in turn to the possibility of foreign companies entering and their financial capabilities and their ability to develop technology by opening job opportunities and introducing methods modernity in management. study objectives : the study aims to measure and analyze the resulting impact on foreign direct investment through the solutions that must be taken in a positive way for economic development in iraq . study hypothesis : foreign direct investment has a major role in economic development in iraq, and there is a positive relationship between economic development, gross domestic product, and foreign direct investment in iraq . study limits : the limits of the study are determined by relying on: spatial boundaries: the country, iraq, was chosen temporal limits: the period was set from 2004 to 2022 study methodology : in light of the problem of the study and in order to achieve its objectives, the researcher relied on the following sources: american journal of business management, economics and banking volume 15 august, 2023 p a g e | 152 www.americanjournal.org 1. secondary data : reliance was made on books, scientific periodicals, websites, and scientific experiments that dealt with the subject of the study and that contributed to building the theoretical framework for the study. 2. main data: to address the analytical aspects of the subject of the study and verify the hypotheses, the researcher relied on the financial and direct foreign investment reports related to the problem of the study . the first research theoretical framework for foreign investment and gross domestic product first: the concept of foreign direct investment : the flow of foreign capital is one of the main features of the phenomenon of financial globalization, in addition to being a source of external financing to finance economic development in iraq. n hand its words, including: (al-jubouri, 2008, 10) what is meant by foreign direct investment is that investment made by foreign companies in the host country other than the mother country, and it results in residents in the foreign country owning a voting percentage and a percentage of the assets that differed according to the definition. (al-jubouri, 2018, 34) the international monetary fund believes that the share of the foreign investor in the assets must not be less than 15% in order to gain him an effective voice in the management of the project (al-tikriti, 2009, 6) . the organization for economic cooperation and development (ocde) defined that foreign direct investment is an activity that demonstrates the goal of a resident entity in an economy to obtain a sustainable benefit in an entity residing in another economy. and the exercise of effective influence in the management of the institution (al-jubouri, 2016, 13). foreign direct investment is defined as the transfer of foreign capital from a particular country to contribute to projects that expand its activity . it is also defined as the movement of cash or in-kind funds and intangible rights from one country to another, whether with or without work to establish an economic project or contribute to the existing legitimate capital, with the aim of achieving a profit that exceeds what is expected to be obtained from the source country . (mabrouk, 2006, 31) confirmed that foreign direct investment is those investments that are owned and managed by the foreign investor, either because of his full ownership of them, or his ownership of a share of them that guarantees him the right to manage, and foreign direct investment is characterized by a double nature: 1. the existence of an economic activity practiced by the foreign investor in the host country. 2. his total or partial ownership of the project through the aforementioned concepts of foreign direct investment, we can come to a specific definition, which is the flow of foreign capital with the aim of creating companies in a particular country or expanding in another country, and that the feature of foreign direct investment is that it does not include the reasons for transferring materials only, but rather the acquisition and ownership of assets in the country host . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 153 www.americanjournal.org through the previous definitions, we can come to a specific definition of foreign direct investment as inflows of foreign capital with the aim of creating companies in a specific country or for expansion in another country, and that the distinguishing feature of this investment is that it does not include the transfer of resources only, but rather the acquisition and ownership of assets in the country host . second: forms of foreign direct investment: the forms of foreign direct investment are characterized by multiplicity and variation in terms of relative importance, as well as the distinctive characteristics of each form of economic development. or more of this type of investments, and it can take one of the following forms: (al-saidi, 2007, 22) . 1. joint investment : it is an investment in which two or more countries participate through a company of international activities, and the participation between the two parties is permanent, and participation in the capital, as well as project management, decision-making, management, patents and trademarks. kat international activities such as a type of investment and means of control in multinational enterprises, and that the most important characteristic of this type of investment is that foreign capital will not be unique only to make management and employment decisions (hafez, 2021, 23). 2. joint foreign investment : this type is more preferred by the multiple sexual companies, because there is no partner and also for political and social reasons in the decrease in the discipline of the control before the foreign investor in the economy of the local economy for the country the host on the one hand, in terms of other aspects enhancing the categorical property is by forming a new layer of businessmen, this form of investment is represented in the exploitation of natural resources, manufacturing or extractive industries, or in various agricultural fields (al-bajari, 26, 2019). the joint foreign investment process has several advantages, the most important of which are: a. the use of modern and advanced technologies reached by foreign companies . b. its production is of high quality, which helps it to compete in the global markets. t. work in building large-scale economic projects, which helps to benefit from economies of scale . w. foreign companies' access to basic materials and fuel at reasonable prices, which reflects positively on the structure of production costs. c. training local cadres in an organized, intensive and good manner in the fields of production, marketing and industrial management . h. increasing the capital of the project by a large amount, thus reducing investment risks and burdens on the foreign investor and the national economy . (al-jubouri, 2008, 20-21) in addition to the foregoing, joint foreign investment is close to political fluctuations, as well as more flexible in the process of spending on it, and also these projects do not need complete liberalization of trade and factors of production, but rather the liberalization process requires the best products and factors of production for these projects . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 154 www.americanjournal.org 3. investment seeking efficiency in performance : this type of investment takes place when multinational companies seek to achieve improvement and development in their profitability and operations through the element of efficiency. in industries that need labor intensity, the other component sought by foreign direct investment. that these projects take the form of an agreement between two parties: one of them is a foreign part and the other is national, whether public or private, which provides the first part of the second part of the components of a specific product. to meet to become a final product, in exchange for the foreign party to prepare the national party with management and technological expertise and the basic expertise necessary to carry out production operations in the host country. (al-tarbouli, 2018, 26) . 4. investing in infrastructure projects: this type of investment is increasing with the trend towards financial globalization, and this investment is in the form of concession contracts based on construction, operation and financing for a period ranging between (20-50) years, especially in developing countries to bridge the gap of local resources through the influx of foreign investment in the field of infrastructure, and this form is directed to infrastructure projects such as building (power stations, roads, airports, ... etc.) and then exploiting them for an agreed period, provided that the investment returns at the end of the concession contract to the community or the government, and this is available to multiple companies. nationalities in building infrastructure projects, which they will benefit from in the future when their ownership is transferred to them, as well as the transfer of expertise, capital and patents. (al-jubouri, 2017, 16) 5. investment in free zones: the free zone is that area that is located within the borders of a particular country and that allows imports to enter it without customs fees or tariffs, and it later re-exports products and commodities from it with some modifications to it, (al-tikriti, 2009, 9) and the foreign investor is far from legislation and laws developed by the host countries, and that the idea of free zones dates back to the era of the roman empire that was established with the aim of attracting international trade, for example, the free zone of gibraltar, which was founded in 1704, the main objective of establishing free zones is to make industries of an export nature, so that countries are working to make these regions more attractive to foreign investment, because it contributes directly to the transfer of technology and the increase of exports, and this leads to an improvement in the balance of payments (al-jubouri, 2008, 23) . second: the concept of economic development: economic development means the transition from emerging economies to advanced economies, that is, the transformation of the economies of countries from simple economies to modern industrial economies, and that the development process leads to raising the level of education and well-being and improving the population and health of citizens so that development takes place through quantitative improvement and time. awareness of the economy by converting agriculture into industry and then in services, and one of the most important results of this process is an increase in life expectancy, as well as an increase in writing, reading and knowledge rates. (majid, 2020, 27) economic development is defined as the process by which the real national income rises over a continuous period of time, and this means that development is achieved at rates higher than the population growth rates and thus the real per capita income rises, and this rise must continue for longamerican journal of business management, economics and banking volume 15 august, 2023 p a g e | 155 www.americanjournal.org term periods and not occur in short-term periods, which is what it occurs in economic cycles, but must continue for more than one cycle, and the ups and downs of a particular economic cycle are higher than in the cycle that preceded it. (al-obeidi, 2017, 91) economic development is also known as the process through which the national economy enters the stage of launching towards self-growth. (al-jubouri, 2014, 89) there are three aspects of economic development, namely: 1. raising the standard of living of individuals by increasing their income and consumption levels of food, education and health services. 2. providing the necessary (motivating) conditions for the growth of self-reliance among individuals, through the establishment of social, political and economic systems and institutions that support human dignity and respect. 3. increasing the freedom of choice for individuals by expanding the range of their economic and social options, by expanding ways to diversify consumer goods, and development is defined as sustainable economic development that appears through changes in production methods, economic and social institutions, the volume of individual and national production, and the increase of capital. (al-ezzi, 2009, 6) third: development goals: among the most important goals that economic development seeks to achieve are the following: 1. one of the goals of economic development is to reduce poverty by providing all resources for the world's population, as well as striving to provide health centers, and this helps to reduce diseases and support the health of the world's population, and that education is of high quality for life. 2. achieving healthy nutrition and food security: by supporting natural resources and striving to achieve job opportunities, decent livelihoods, and equitable growth. through this, it will be an essential factor and a reason for bringing about rapid change in building a person who enjoys freedom and prosperity. 3. development aims to increase the average per capita income: over a long period of time, in addition to developing and providing administrative and organizational competencies and working to bring about changes in habits and values and in some of the prevailing institutions or the establishment of new organizations and institutions. (al-douri, 2019, 30) 4. capital support: this objective is related to providing adequate support for the suspended capital, which is supposed to be in a state of deficit due to the decline in savings related to the financial needs in the central bank and other commercial banks, which includes funds on a regular basis, securities and bonds. 5. increasing national income: it is one of the most important goals of economic development because it is concerned with developing the standard of living for the individual and strengthening the infrastructure of the economy, industry and trade alike, which addresses the problems resulting from the weakness of the local economic level. 6. investment in natural resources: development seeks to encourage international and local investments in natural resources on the lands of states by supporting the public infrastructure. (majeed, 2020, 2829) 7. economic development aims to ensure the availability of adequate supplies of water: it works to raise the capacity and efficiency of water use in the process of industrial, agricultural and rural development. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 156 www.americanjournal.org for poor, aim the development process to seek to ensure the protection of water bodies as well as groundwater and fresh water resources. (al-samarrai, 2018, 20) 8. addressing administrative corruption: through the development of laws and legislation that help avoid administrative corruption that affects economic stability, occupies economic resources, and contributes to addressing the development of the local economy. (majid, 2020, 29) 9. expanding the productive structure: it is one of the important pillars of the development process, especially the economic ones, as it works to build a broad base for the productive structure. technological development in order to increase productivity and provide the necessary needs for the national economy (majeed, 29, 2020) . second topic: the reality of foreign direct investment and gross domestic product in iraq the first requirement: global trends of the reality of foreign direct investment the real beginning of foreign direct investment was after the establishment of the industrial revolution in the middle of the nineteenth century, when the flow of foreign direct investment became a global phenomenon competing with various countries of the world in order to obtain the largest share of this, whether it was an incoming or outgoing investment. the rapid growth of foreign direct investment flows during the past two decades, as these flows tripled during the period (1982-1990), to reach (203) billion dollars in the year (1990) compared to (59) billion dollars in (1982), and the rise continued during period (1990-2000) to reach about (2642) billion dollars. (al-jubouri, 2008, 75) through what has been mentioned, iraq suffers from a weak investment climate, and this can be clear as follows: 1. the increase in countries' need for external sources of financing after the decline in global savings rates, and the decline in other sources of financing for many developing countries. 2. increasing the number of agreements encouraging investment between countries and using foreign investment as a means to avoid customs restrictions that resulted from the establishment of many economic blocs. 3. the low level of lending due to the outbreak of the global indebtedness crisis and the iran-iraq war in 1982, and its refusal to pay its debt burdens. 4. most of the countries that have large debts, such as argentina, brazil, the philippines and mexico, sell their debts to investors at a price commensurate with their desires, or the contribution of this program to the total flows to these countries from (20-80%). (aziz, 2018, 34-35) and that the developing countries that have succeeded in attracting foreign direct investment are those that have prepared programs for economic reform that included liberalizing the movement of international trade and capital across borders, as well as privatizing the main industrial sectors and floating their currency, establishing free industrial zones exempt from taxes and reducing import and export fees . first: the reality of foreign direct investment in iraq: foreign investments are one of the aspects of connection with the economies of the countries of the world, and the acquisition of investments is of special importance in the iraqi economy, as it is the source of the development process and access to modern and organizational technology, administrative and marketing skills, and iraq today needs investments in all its forms more than a long time ago, given the the destruction of the basic elements and infrastructure as a result of the wars and the american american journal of business management, economics and banking volume 15 august, 2023 p a g e | 157 www.americanjournal.org occupation, which necessitates openness to foreign investment, in order to contribute to the rebuilding of iraq and the development of its economy, especially after the major changes in the process of managing the economy and the issuance of investment law no. (13) of (2006), which it is an important step in encouraging foreign investment. and if we take the average volume of investments for the period (2004-2022), it is equal to (7471) million dollars, and therefore the nature of the iraqi economy requires it to work to attract foreign capital for reconstruction and employ it to build the various sectors of the economy to advance the development process, which increases the need for this economy and its dependence on the economies of the countries of the world so that these forms, whether positive, are able to achieve them. (al-azzawi, 2015, 59) second: the reality of the gross domestic product in iraq: gross domestic product is an economic indicator that measures the monetary value of the total goods and services produced within a country's borders during a given period. there are some non-market service products that the government provides for free, such as education, health, security and national defense, and the gross domestic product produced in iraq is measured as follows (al-jubouri, 2022, 45): 1. production: by adding the added values of all production activities and materials involved, and the added value is determined as the difference between total sales and the value of intermediate inputs in the production process. 2. expenditure: add final consumption expenditures for households, companies, and the government sector, as well as investment expenditures and the balance of payments with abroad (exports and imports). 3. income: it is the total income resulting from production, such as workers’ wages, company profits, and taxes. iraq's gross domestic product is estimated at billion dollars for the year 2022. there are many studies conducted in order to study the factors affecting foreign direct investment flows in relation to foreign investment, including the haver study and others, which examined the effect of population growth and output growth. increasing investment flows by 15%, and in recent studies that examined the relationship between investment in general, public investment, and gross domestic product (economic growth), (reinhart and khan) found that public investment has a positive and significant impact on gross domestic product (economic growth) and investment in transportation, communication and education have a significant impact on economic growth (al-jabouri, 2016, 72). chapter four: estimating the impact of foreign direct investment on the gross domestic product in iraq for the period 2004-2022 first: a description of the standard model : schedule (4) standard form variables source: the table prepared by the researcher based on the description of the model. monetary policy variables variable symbol the name of the variable in arabic variable type x direct foreign investment independent y1 gross domestic product continued american journal of business management, economics and banking volume 15 august, 2023 p a g e | 158 www.americanjournal.org schedule (7) dickey-fuller (adf) and peyron (p-p) tests for the study variables unit toot test .augmented dickey-fuller philips – perron (p-p) المتغيرات t-statistic prob. t-statistic prob. x level -4.54315 0.0123 -2.649189 0.0024 first difference -2.37654 0.0004 -2.016528 0 .0259 y1 level -2.98765 0.0187 -4.72612 0.0022 first difference -0.99836 0.0099 -4.01760 0.3567 source: the table was prepared by the researcher using the program (12eviews). third: the main estimate of the gdp model (ardl) table (9) the results of the main estimation of the ardl model dependent variable: logy1 method: ardl selected model: ardl(1, 0) variable coefficient std. error t-statistic prob.* logy1(-1) 0.710423 0.080099 8.869302 0.0000 logx 0.115148 0.072353 1.591470 0.1324 c 5.248839 1.462228 3.589616 0.0027 r-squared 0.872016 mean dependent var 19.04629 adjusted r-squared 0.854952 s.d. dependent var 0.391545 s.e. of regression 0.149121 akaike info criterion -0.817109 sum squared resid 0.333555 schwarz criterion -0.668714 log likelihood 10.35398 hannan-quinn criter. -0.796647 f-statistic 51.10114 durbin-watson stat 2.023146 prob(f-statistic) 0.000000 source: table from the output of the statistical program (12eviews) . the data in the above table shows the value of r2 = 0.872016), which represents the explanatory ability of the model, and the value of (d-w) ((2.023146), meaning that the model is devoid of correlation, and the statistical value of f-statistic reflects the importance of the model as a whole, which is less than (5%) . fourth: bound test table (10) bound test results f-statistic 6.593327 10% 3.02 3.51 k 1 5% 3.62 4.16 source: the table prepared by the researcher using the program (12eviews). the table above shows the calculated (f-statistic) value (6.593327), which is greater than the tabulated value (4.16) at the probability level (5%), which means that there is a long equilibrium relationship that confirms the existence of co-integration between the variables of the model . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 159 www.americanjournal.org fifth: the short-term regression between foreign direct investment and gdp: schedule (11) short term estimates and error correction for the study variables dependent variable: d(logy1) variable coefficient std. error t-statistic prob. c 5.248839 1.462228 3.589616 0.0027 cointeq(-1)* -0.289577 0.080099 -3.615229 0.0025 logx** 0.115148 0.072353 1.591470 0.0024 source: table from the output of the statistical program (12eviews). through the results of the previous table, if foreign direct investment as an independent variable succeeds in proving its significant and positive impact on the gdp index (y1) at a significant level less than (0.05), that is, when foreign investment increases by 100%, gdp increases by 11%, with the other factors remaining constant, similarly, the error correction coefficient has a negative sign, reaching (0.289577), and this value is significant based on the probability value, which amounted to (0.0025), which is less than (0.05), meaning that the first condition has been met, noting that this the value indicates that 28% of the short-run errors can be corrected in the time unit represented here by the year, in order to return to the long-run equilibrium . sixth: the long-term regression between foreign direct investment and gross domestic product : schedule (12) long-term estimates of the variables of foreign direct investment and gross domestic product levels equation variable coefficient std. error t-statistic prob. logx 0.397644 0.236792 1.679299 0.0138 c 18.12590 0.686265 26.41241 0.0000 ec = logy1 (0.3976*logx + 18.1259) source: table from the output of the statistical program (12eviews) through the previous table, if (foreign direct investment) succeeds in proving its positive and tangible impact on the gdp indicator with a significant level less than (0.05), that is, for foreign direct investment, the investment increases by 100% and the gdp increases by 39% with the remaining other factors. fixed . seventh: diagnostic tests for the variable (y1) : in order to ensure the validity and accuracy of the results obtained in the previous tests, we will perform some important diagnostic tests to prove it, as follows: a. the self-correlation problem: the results showed, according to the (lm) test and the (f-test) statistic, that they are not significant, and therefore we reject the hypothesis of the selfcorrelation problem . american journal of business management, economics and banking volume 15 august, 2023 p a g e | 160 www.americanjournal.org schedule (13) test results (lm) breusch-godfrey serial correlation lm test: f-statistic 0.205749 prob. f(2,13) 0.8166 obs*r-squared 0.552284 prob. chi-square(2) 0.7587 source: table from the output of the statistical program (12eviews). b. the problem of normal distribution: the results showed that the data did not suffer from the problem of normal distribution as follows : 0 1 2 3 4 -0.3 -0.2 -0.1 0.0 0.1 0.2 series: residuals sample 2005 2022 observations 18 mean 1.73e-15 median 0.010092 maximum 0.199531 minimum -0.286694 std. dev. 0.140075 skewness -0.610519 kurtosis 2.618804 jarque-bera 1.227184 probabil ity 0.541403 source: figure from the output of the statistical program (12eviews). figure (3) normal distribution conclusions and recommendations first: conclusions 1. it was found through the unit root tests that the variables of the study settled at the level and some others settled at the first difference. 2. the results showed that there is a positive and significant correlation with what foreign direct investment (x) is an explanatory variable and the dependent variable is gross domestic product (y1). 3. the explanatory ability of the model was (r2 = 0.872016), and the value of d-w was (2.023146), meaning that the model is devoid of correlation. the f-statistic value also reflected the significance of the model as a whole, which is less than (5%). 4. the short-term results showed that foreign direct investment as an independent variable has succeeded in proving its significant and positive impact on the gdp index (y1), but in the long term, then (foreign direct investment) has succeeded in proving its positive and significant impact on the gdp index. for total . american journal of business management, economics and banking volume 15 august, 2023 p a g e |161 www.americanjournal.org second: recommendations 1. the decision-maker must make way for foreign direct investment by activating the investment law, working on the principle of transparency, eliminating red tape, and fighting administrative and financial corruption. 2. work to achieve security stability, stop political disputes and conflicts, and partisan strife, since these are among the determinants of the investment climate, in addition to rationalizing unnecessary government spending and directing it towards building infrastructure. 3. work to establish an advanced banking sector that keeps pace with the development in the outside world so that the foreign investor feels what is insured for his money and profits, and to maintain the fight against inflation through fiscal and monetary policy. 4. establishing free zones in iraq for their role in influencing foreign investment decisions, and promoting other economic sectors such as agriculture, industry and tourism through internal and external seminars and conferences. 5. adopting an openness policy with a competitive export orientation that encourages foreign trade by encouraging exports by removing all obstacles in front of it. sources and references 1. al-jubouri, abdul-razzaq, 2014, the role of foreign direct investment in economic development, dar al-hamid for publishing and distribution 2. mabrouk, nazih abdel maqsoud, the economic effects of foreign investments, 2007, first edition, dar al-fikr al-jamei 3. al-bajari, ahmed ibrahim hussein, 2019, measuring the impact of direct private investment (domestic and foreign) on unemployment rates for selected developing countries for the period (1985-2017), master's thesis in economic sciences, college of administration and economics, university of mosul. 4. al-tikriti, bilal abdel-haq, 2009, foreign direct investment and the future of the oil industry in iraq (an analytical study), master's thesis in economic sciences, college of administration and economics, tikrit university 5. al-jubouri, bakr hamid jasoum, 2018, study and analysis of foreign direct investment in the arab spring countries for the period 2003-2016, master's thesis in economic sciences, college of administration and economics, tikrit university 6. al-jubouri, abdel-razzaq hamad hussein, 2008, analysis of foreign direct investment trends and measuring its impact on some macro-variables, selected arab countries for the period 19902005, ph.d. thesis, college of administration and economics, university of baghdad 7. hafez, abu bakr amer, the impact of some monetary policy variables on attracting foreign direct investment in iraq for the period (2004-2018), 2021 master's thesis in economic sciences, college of administration and economics, university of tikrit 8. al-douri, muhammad emad abdel-aziz, 2009, the possibility of integration between financial markets in the gulf cooperation council countries, master's thesis in economic sciences, college of administration and economics, tikrit university, iraq. 9. al-samarrai, 2018, noman munther younis, 2018, public spending and its impact on sustainable development selected developing countries for the period (2000-2016), master's thesis in economic sciences, college of administration and economics, university of tikrit. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 162 www.americanjournal.org 10. tarbouli, haitham muhammad ismail taha, 2018, foreign direct investment and the future of the oil industry in iraq (analytical study), master's thesis in economic sciences, college of administration and economics, university of tikrit 11. al-obeidi, hammoud noman bilal, 2017, administrative and financial corruption and its effects on economic development in iraq for the period 2003-2015, and the role of the media in confrontation (analytical study), master's thesis for economic sciences, college of administration and economics, university of tikrit. 12. al-azzawi, ali faris manea sarhan, 2018, the impact of the change in dollar exchange rates on iraq's foreign trade for the period (2005-2015) analytical study, master's thesis in economic sciences, college of administration and economics, university of tikrit. 13. al-ezzi, ibrahim ali muhammad, 2009, studying the negative effects of economic development on the environment, with special reference to the case of iraq, master's thesis in economic sciences, college of administration and economics, university of tikrit. 14. majeed, nagham mahmoud, 2020, the impact of borrowing from international financial institutions on economic development in iraq for the period (2004-2018), master's thesis in economic sciences, university of tikrit. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 136 www.americanjournal.org assignment by assignment mode abdul hassan rahim lecturer, accounting department. shan al-arab university, e-mail: abdulhussarahim/@xa-uc.edu.iq a b s t r a c t k e y w o r d s the current research aims to study the possibility of applying the (qsb) program on how to allocate different resources to the works that require the assignment of various projects and contracting to business companies and primary and secondary contractors and the distribution of resources to the various bodies concerned with implementation according to fair methods that take into account the various factors and capabilities available to these bodies. several scientific methods and methods for resource distribution methods were discussed, as well as the methods most consistent with the iraqi reality and the selection of one of them. therefore, the researcher came to the conclusion that there are ways that may harmonize with the iraqi reality more than others, explaining the application requirements and techniques, explaining the application skills and its requirements quantitative system for business, qsb program, requirements and techniques. introduction الجزء األول منهجية البحث لتخصيص الموارد عملي أسلوب قتطبي لغرض لبحث المنهج التطبيقي من خالل دراسة الحالةيعتمد ا ل الى التخصيص االمثلص اإللكتروني في التو الحاسببناء نموذج رياضي واستخدام على اداماعت . مشكلة البحث -1 البشائر أنوار شركة تخصي ( الشركات من هاريغك )تواجه مشاكل تخصيصرالموا ص، أو د الب عليها من محافظة تحال التي الكبير المشاريع الثانويين إلنجاز ضخامةورغم صرةالمقاولين رض التخصيص غن االساليب المتبعة في عملية التخطيط لالمشاريع اال أ إلنجازالمخصصة لغالمبا مع ى تعد تتماش بدائية لمال زالت أساليب الثانويين المقاولين واختيار مثل للموارد واالستخداماتاأل شركة رارات التخصيص ، وقد أحيلت على ل المتاحة عند اتخاذ قائ المشاريع وزيادة البد قدتطور وتع american journal of business management, economics and banking volume 22 march 2024 p a g e | 137 www.americanjournal.org البشائر م مشروع انوار شبكة الج تنفيذ المياه شبكه ةقيلث اري ) ضخمة رصد وهي مليار ٣لها ) لتنفيذ جزء من ينالثانوي مقاولينه وهي اختيار المهم كتكاليف عمل والشركة أمامها اتخاذ قرارات ونهو تكاليف التنفيذ لك ن المقاولي ار ي العامل الرئيسي في اخت التكاليفكن من ما يم المشروع بأقل لى يتم استبعادهم في المرحلة االو وعرمشال ذالالزمة لتنفي تالب طالمتالذين ال تتوفر فيهم نالمقاولي تنفيذ المشروع . أمكانيات رات و ب الذين لديهم خ نهليؤ ات ويبقى المءاعطفحص ال من هدف البحث -2 جا في البحث الى نب يهدف النظري استخدام ه أسلوب وحله نموذج عرض باستخدامالتخصص ببرنامج وباالستعانة ية ر نغاهال الطريقة win qsb ت يينالثانو ن المقاولي اختيارفي ميم علغرض قدم سلوب الماال د اماعت مما يشجع على و استخدام هذا االسلوب الحقاً. في جميع قرارات التخصيص، ية المستخدمة وأنه ئ ادالب ساليبباألة في اتخاذ قرارات التخصيص مقارنة عوالسر استخدامه سهولة ن ع من يتم استبعادهم كون القرارات تتم م يضمن الحيادية في اتخاذ القرارات وعدم تذمر البعض . أو التوسط للحصول على فرصة عمل في الشركة لالرتجال ال ج م ال و حاسبة لطريق ا فرضية البحث -3 ص يمكن يفي مشاكل التخص ىقرارات المثلالأسلوب نموذج التخصص في التوصل الى د اماعت أن win qsb ببرنامج االستعانةيسير ال سيما عند بوقت وجهدل ث الشركة من التوصل الى القرار األم يضم العديد من على الكثير من القرارات الحقا كونه هتطبيقاستخدام هذا البرنامج يمهد وفس و . النقل والمخططات الشبكية كنماذجج ذماالن البحث أسلوب -4 للجانب اآلخر والقسم التخصيص لنموذج النظري للجانب مبسط عرض تم البحث أهداف لتحقيق التي الثانوية المقاوالت لتنفيذ ينالثانوي نالمقاولي ( تحديد) صيتخص لمشاكل تطبيقا يتضمن العملي مع االمثل التخصيص هو التخصيص يكون أن ضمان مع ينثانوي نمقاولي باستخدام تنفيذها يراد win qsb ببرنامج االستعانة البحث أهمية -5 المعتمد األسلوب اتباعب وال م واال د هالج الكثير توفير فباإلمكان تطبيقه نتائج من حث الب أهمية تأتي win asb وبرنامج االلكتروني اسبالح وباستخدام بحثال في دو جه ب لولح ال الى التوصل يمكن كثرة بسبب وىدالج عديم أصبح والذي الكامل العد كاسلوب المتبعة البدائية باألساليب مقارنة ةقليل المعتمد سلوباال اهذ يوفره والذي للموارد االمثل االستخدام نأ القرار , متخذ لدى المتاحة البدائل . الموارد فيه وتشح التنافس يسوده عالم في شركه ألي سيه فتنا ميزه ديع بالبحث american journal of business management, economics and banking volume 22 march 2024 p a g e | 138 www.americanjournal.org الجزء الثاني، الجانب النظري نموذج التخصيص مفهوم نموذج التخصيص 2 -1 البر التخصيص موذج ن نماذج المواخطلاجة م حالة خاصة من بتخصيص يستخدم وهو د رية تكل بأقل يتم تمثيل حعظم رب بأ ه او فلالستخدامات بحيث يكون لكل مورد استخدام واحد حيث ةعمدة( وتمثل أرقام المصفوفاال دداوي لعصيص بمصفوفه مربعه )عدد الصفوف مسمشكلة التخ كل مورد لكل استخدام وهو يمتاز مورد لكل استخدام. استخدام كل استخدام او ارباح تكاليف له باستخدام طرق سوف نستعرضها في سياق البحث. هله سح خصائص تجعل من مكانية ب صيالتخص لنموذج الشكل العام 2 -2 أن : بافتراضي للتخصيص الشكل اآلتالعالم بأخذ النموذج دد مصادر العرض عم : موقع االستالم ن: أم : عدد الوحدات المعروضة في المصدر ) م( )م= 1 , 2 , 3 , .... ل( بن : عدد الوحدات المطلوبة عند موقع االستالم ن )ن = 1 , 2 , 3 , .....ك ( تأن: تكلفة توزيع الوحدات من مصار العرض )أ ( الى جهة االس ت الم )ن( الى مصادر االستالم باقل توزيعها من مصادر العرض باإلمكان: تحديد الوحدات التي هدفلة الدا . تكلفه طرق حل مشاكل التخصيص 2 -3 complete enumeration الكامل العد طريقة .1 hungarian method الهنغارية الطريقة .2 11ت 12ت 21ت 22ت 31ت 32ت 11س 12س 12س 22س 31س 32س 1م 2م مصادر العرض أ 1ب 3ب 2ب american journal of business management, economics and banking volume 22 march 2024 p a g e | 139 www.americanjournal.org linear programming method طريقة البرمجة الخطية .3 transportation method النقل طريقة .4 لحل سبن األ لكونها الثانية ةلطريقا و عهاشيول األولى الطريقة على شرحنا يقتصر وسوف . النقل مشاكل الكامل العد طريقة 3-2-1 complete enumeration enumerating method صرلح ا بطريقة أيضا وتسمى جميع حساب يتم وبموجبها واختيار . المتاحة من البدائل بديل كل تكلفة وايجاد ة ح ات الم للموارد ملةالمحت االستخدامات عندما ربح أعظم أو تكاليف تدنية الهدف يكون ماند ع تكلفه أقل يحقق الذي االمثل البديل الوقت في تصلح ال أنها غير الطرق أسهل من الطرق هذه وتعتبر أرباح تعظيم فهدال يكون الطريقة هذه بموجب البدائل دد ع أن حيث البدائل لكثرة اهاستخدام حيث يصعب الحاضر ! ) يساوي n البدائل عدد فان استخدامات( 6) و موارد( 6) من تتكون المشكلة كانت اذاف( الموارد عدد كلما زاد االمثل واختيار رنةالمقا بعيص الذي االمر بديل( 720) يكون سوف كبيرة حسابية عمليات تتطلب ال وأيسر انسب طريقة هنالك وان سيما ال واالستخدامات ( اريةهنغال الطريقة وهي) االلكتروني الحاسب استخدام مع خاصة hungarian methodالطريقة الهنغارية – 22 -4 ل مثاأل حل التوصل الى ال تم ص حيث يي التخص نماذج لحل أفضل الطرق الطريقة عد هذه ت :الخطوات االتية فقو ي الجدول واالستخدامات على ب الموارد على أحد جان تدرج جدول التخصيص حيث دداعأ .1 . رباح التكاليف أو اال توضح جدول الجانب االخر وفي خاليا ال عندئذ يضاف ال تساوي عدد االعمدةصفوف الجدول عدد دما تكون ن ع زنالتوا قيقتح .2 لعدد مساوي الصفوف )عدد التوازن لتحقيق الحاجة( )حسب وهمي عمود او صف االعمدة ( تكاليف الصف المضاف قيم صفرية . المصفوفة )الجدول ( الى جدول تكاليف : عندما تكون االرقام الخاصة بالجدول تحويل .3 يتم تح الىتمثل ارباح الجدول فيه م يقتكاليف وذلك بطرح جميع القيم من اكبر ويلها . ية (صالفرالستخراج التكاليف ) . قيمة في كل صف من جميع قيم الصف أقل اطرح .4 قيمة في كل عمود من جميع قيم العمود . اطرح اقل .5 خطوط ال فاذا كانت عدد القيم الصفريةطي غ التي ت قيمة الخطوط المست رسم أقل عدد من ا .6 امثل اما اذا الصفوف (فأن الحل و التي تساوي عدد ) عمدةاال د دمساوية لعالمستقيمة قيمة غير كانت الصفوف عندئذ تطرح اصغر تساوي عدد المستقيمة ال الخطوط عدد مغطاة بالخطوط المستقيمة من جميع القيم غير المغطاة ونضيف نفس القيمة الى االرقام american journal of business management, economics and banking volume 22 march 2024 p a g e | 140 www.americanjournal.org المستقيمة الخطوط تقاطع في عدد الواقع الى التوصل لحين الخطوات هذه ونكرر الخطوط المستقيمة التي تغطي القيم الصفرية مساوية لعدد االعمدة )الحل االمثل ( -تخصيص الموارد على االستخدامات :ويتم ذلك باالعتماد الخطوات التالية : .7 a. ابدأ التخصيص بالعمود او الصف الذي فيه قيمة صفرية واحدة b. يتم ال )كي موارده تخصيص تم الذي الصف أو للعمود الصفرية القيم احذف تخصيصه مرة اخرى ( . c. كرر الخطواتb , a . حتى يتم اكمال التخصيص لكل الموارد ) في جدول الموارد على االستخدامات بتكاليف قدرها قيم صفرية جميع اذا تم التخصيص .8 فأن التخصيص هو االمثل . الحل االمثل ( تكلفة التخصيص هي التكاليف المقابلة للتخصيص الوارد في الجدول االخير في الجدول .9 )جدول التكاليف ( االول الحاالت المختلفة لنموذج التخصيص 24 maximization problems التعظيم مشاكل -أ ففي بعض المشاكل يكون الهدف تعظيم ارباح عندئذ تدنية تكاليف الهدف يكون ال قد البد من تحويل مصفوفة االرباح الى مصفوفة تكاليف )تكاليف فرصيه ( عن طريق طرح جميع قيم مصفوفة االرباح من اكبر قيمة من قيم المصفوفة ثم نتبع الخطوات التي اشير اليها فيما سبق اما االرباح فيتم ايجادها عن طريق جمع االرباح المقابلة للتخصيص الذي يتم التوصل اليه بعد التوصل الى الحل االمثل اي اعتماد االرباح الواردة في المصفوفة االولى قبل تحويلها الى مصفوفة تكاليف . unbalanced assignment problem التوازن عدم -ب الفرق كمية تضاف عندئذ. طلبال مع العرض تساوي عدم هو التوازن بعدم والمقصود الطلب عاد واذا الفرق للطلب فتضي براك العرض كان فاذا طرفين ال تساوي لغرض مود المضاف تكون تكاليفه صفر والتخصيص الع أو الصف فرقال للعرض فضين اكبر في هذا العمود او الصف يمثل مقدار العجز في العرض عندما يكون العرض اقل من والصف للعمود التكاليف ولكون الطلب من اكبر يكون عندما الفائض ويمثل الطلب قيمتها صفر فان االجراء في الحالتين ال يؤثر على كون التكاليف التي يتم التوصل اليها هي التكاليف المثلى . multiple solutionsحالة تعدد الحلول المثلى -ت american journal of business management, economics and banking volume 22 march 2024 p a g e | 141 www.americanjournal.org في بعض االحيان يتم التوصل الى عدة طرق مثلى لتخصيص الموارد )لها نفس التكاليف الحالة تدعى المثلى وعندئذ يمكننا استخدام اي من هذه المثلى ( وهذه الحلول تعدد الحلول في التنفيذ . restrictions assignmentتقييد التخصيص -ث البحث في االستخدامات بعض في استخدامها يمكن ال موارد تتوفر الحالة هذه وفي ألسباب فنية بحثية تتعلق بطبيعة الموارد واالستخدامات ولمعالجة هذه الحالة نفترض ان ∞تكلفة التخصيص لهذه الموارد قدرها ما النهاية وبالتالي تضمن عدم استخدمها في الحل الذي يتم التوصل اليه. الجزء الثالث : الجانب التطبيقي مشروع مجاري اسكان الموانئ من المشاريع التي احيلت من قبل محافظة البصرة ضمن مشاريع تنمية االقاليم . يتكون المشروع من محطة وخطوط ناقلة وشبكات صرف صحي وقد قررت الشركة احالة جزء من اعمال المشروع الى مقاوليين ثانويين بعد التأكد من توافر الخيرات لديهم وفق -الشروط التالية : يتم تجهيز االنابيب من قبل مديرية المجاري . -1 يتم تجهيز المنهوالت واغطيتها من قبل شركة انوار البشائر . -2 يتولى المقاول الثانوي اعمال مد االنابيب ودفنها بالسبيس واعادة دفنها بالتراب واعادة تبليط -3 الشارع . يخضع المقاول الثانوي لتوجيهات المهندس المشرف . -4 ( الف دينار عن كل يوم تأخير .250يتحمل المقاول الثانوي مبلغ ) -5 -ن ثانويين يتكون من :الشركة احالته الى المقاولي الجزء الذي قررت اوال: اربعة خطوط نقل رئيسية ثانيا: ستة قواطع لخطوط نقل ثانوية وقد تم تخصيص الخطوط والقواطع كل على حده الن المقاولين المؤهلين لتنفيذ الخطوط الرئيسية تختلف مؤهالتهم عن المنفذين للخطوط الثانوية . -اوال : تخصيص الخطوط الرئيسية : وقد تم اعتماد إلنجازهاتتكون خطوط النقل الرئيسية من اربع خطوط تقدم لتنفيذها خمسة مقاولين تبين تنفيذ الخطوط على اساس سعر المتر )بأالف ( وكما مرفق في الجدول وعند تدقيق االسعار في المفاضلة ألغراض ألنها اقل من اسعار العقد المبرم مع المحافظة لذا تم اعتمادها زيةانها مج ( ولمحدودية عدد الخطوط والمقاولين سوف تعتمد 1في الجدول )رقم التخصيص و ادراجها علما بأن جميع المقاولين وافقوا على الشروط التي في الطريقة الهنغاريةالخطوات المشار لها في american journal of business management, economics and banking volume 22 march 2024 p a g e | 142 www.americanjournal.org اعتمدها الشركة وبالمدد الزمنية ودفع فوائد تأخيريه )ان حصل التأخير ( وبعد التأكد من امتالكهم روض المقدمة لتنفيذ مع( يمثل تكاليف ال1الخبرة والمعدات الالزمة للعمل الجداول االتي )رقم الخطوط الرئيسية االربعة . (1جدول ) الموارد تاالستخداما (1) (2) (3) (4) a 100 150 70 60 b 120 170 60 50 c 150 160 50 65 d 110 180 75 55 e 140 200 85 70 ي لتحقيق التوازن مالنموذج غير متوازن الن عدد الوكالء اكثر من عدد الخطوط لذا تضيق عمود وه . ( 2جدول ) الموارد االستخدامات (1) (2) (3) (4) العمود الوهمي a 100 150 70 60 صفر b 120 170 60 50 صفر c 150 160 50 65 صفر d 110 180 75 55 صفر e 140 200 85 70 صفر 100 150 50 50 صفر في كل صف قيم صفرية لذا يبقى ( يحتوي اقل قيمة 3عند طرح اقل قيمة في كل عمود الجدول ) الجدول كما هو ونرسم اقل عدد من الخطوط المستقيمة التي تغطي القيم الصفرية ي أصغر قيمة ف كل عمود american journal of business management, economics and banking volume 22 march 2024 p a g e | 143 www.americanjournal.org ( 3جدول ) sections c ontractors (1) (2) (3) (4) العمود الوهمي a صفر 10 20 صفر صفر b 20 20 10 صفر صفر c 50 10 صفر 15 صفر d 10 30 25 5 صفر e 40 50 35 20 صفر ( 5عدد الخطوط التي تغطي القيم الصفرية اقل من عدد الصفوف لذا تطرح اقل قيمة غير مغطاة ) ( 4من جميع القيم غبر المغطاة ونضيفها الى القيم الواقعة في تقاطع الخطوط فينتج جدول رقم ) ( 4جدول ) الموارد االستخدامات (1) (2) (3) (4) العمود الوهمي a 5 10 20 صفر صفر b 20 20 10 5 صفر c 50 10 5 15 صفر d 5 25 20 صفر صفر e 35 45 30 15 صفر ( وهي اقل 4( ان اقل عدد من الخطوط المستقيمة التي تغطي القيم الصفرية )4نالحظ في الجدول ) ( من جميع القيم غير المغطاة 5من عدد الصفوف لذا تكرر طرح اقل قيمة غير المغطاة ومقدارها ) ( ادناه .5ونضيفها الى قيم الواقعية في تقاطع الخطوط المستقيمة فينتج الحل الوارد في جدول رقم ) american journal of business management, economics and banking volume 22 march 2024 p a g e | 144 www.americanjournal.org 5جدول رقم المقاولين القواطع (1) (2) (3) (4) العمود الوهمي a 10 15 20 صفر صفر b 15 15 5 5 صفر c 50 10 10 20 صفر d صفر صفر 15 20 صفر e 30 40 25 15 صفر الجدول اعاله يتضمن الحل االمثل الن اقل عدد من الخطوط المستقيمة التي تغطي القيم الصفرية والتخصيص االمثل مؤشر في دوائر وبموجبه يكون التخصيص كاالتي :مساوية لعدد الصفوف ( للمقاول 1يتم تخصيص الخط رقم ) d 110وبتكلفه ( للمقاول 2رقم ) a 150 وبتكلفه ( للمقاول 3رقم ) c 50وبتكلفه ( للمقاول 4رقم ) b 50وبتكلفه eيتم استبعاد المقاول عمود الوهمي ( في ال خصيصهلعدم الحاجة له )الحظ ان ت تخصيص الخطوط الثانوية -ثانيا : خطوط النقل الثانوية الى عشرة قواطع تولى كادر الشركة تنفيذ اربعة منها اما القواطع تم تقسيم الستة االخرى فيتم احالتها الى مقاولين , وقد تقدم لتنفيذها عدد كبير من المقاولين تم استبعاد عدد منهم بسبب عدم توفر المؤهالت المطلوبة من خيرة فنية وكادر ومكائن تؤهلهم للتنفيذ والجدول االتي يلخص العروض المقدمة وتكاليف تنفيذ المتر الواحد )باأللف( table (6) المقاولين القواطع a b c d e f (1) 35 30 40 41 33 36 (2) 46 40 42 50 58 60 (3) 20 44 30 28 27 26 (4) 50 52 57 56 50 54 (5) 42 40 41 44 43 40 (6) 62 60 58 59 63 60 american journal of business management, economics and banking volume 22 march 2024 p a g e | 145 www.americanjournal.org qsbوباستخدام برنامج -وفق الخطوات االتية : all program win asb network modeling ↓ file ↓ new problem ↓ assignment problem ↓ problem title ↓ يظهر مربع حواري إلدخال ابعاد المصفوفة ↓ لتخصيصه 10يظهر مربع حواري إلدخال بيانات جدول ↓ solve and analysis -تحصل على التخصيص االمثل وبموجبه يتم التخصيص االمثل كما يلي : bالقاطع االول يتم تخصيصه للمقاول دوالر للمتر 30بتكلفة يتم تخصيصه للمقاول ثانيالقاطع ال c بتكلفة 42 دوالر للمتر يتم تخصيصه للمقاول ثالثالقاطع ال a بتكلفة 20 دوالر للمتر يتم تخصيصه للمقاول رابعالقاطع ال e بتكلفة 50 دوالر للمتر يتم تخصيصه للمقاول القاطع الخامس f بتكلفة 40 دوالر للمتر dالقاطع االول يتم تخصيصه للمقاول بتكلفة 59 دوالر للمتر دوالر 241وبمجموع تكاليف قدرها االستنتاجات والتوصيات : american journal of business management, economics and banking volume 22 march 2024 p a g e | 146 www.americanjournal.org توفير يمكن الشركة لموارد االمثل التخصيص الى الوصول في التخصيص نموذج باستخدام واستغالل الكثير من الموارد و ايجاد ميزة تنافسيه للشركة السيما بعد استخدام الحاسب االلكتروني qsbومن خالل تطبيق برنامج اصبح الوصول للتخصص االمثل عمليه ال تكلف من الجهد والوقت قرارات ويحدده التأثيرات الشخصية اال اليسير وهذا االسلوب يجنب الشركة العشوائية في اتخاذ ال على متخذ القرارات , والتوسع بالمشاريع وتزايد انشطتها وتكاليفها يعتبر مبرر مهم الستخدام هذا االسلوب الذي يقلل الكثير من الصعوبات . المصادر: 1. gupta,p.k.,&hira, d.s.(1987).operation research 2nd e d, s.chand company ( p v t) ltd, ram nagar new delhi. 2. hamdy , a.t.(2006).operations research an introduction, 4th ed. 3. sharma , g.k.(2004) operations research 2ed ,macnildian . 4. hillier ,l.,(2007).introduction operations research 8th , mc graw – hill. american journal of business management, economics and banking issn (e): 2832-8078 volume 17, | october, 2023 p a g e | 52 www.americanjournal.org investing in the green economy: legal regulation phd. якубова мадинабону абдумаликовна тошкент давлат юридик университети кибер хукук кафедраси a b s t r a c t k e y w o r d s the article discusses the current state of legal regulation of investments in the green economy. five key aspects are analyzed: incentives for green investment, removal of barriers, international cooperation, monitoring and enforcement mechanisms, and stakeholder engagement. a comprehensive framework is proposed to accelerate the transition by strengthening the rule of law, increasing policy coherence, implementing sound rules, investor confidence and institutional capacity-building. the new frameworks presented include the green investment code, the carbon disclosure regime, the climate justice fund, and multi-stakeholder dialogues. green economy, green finance, sustainable development, climate change, environmental law introduction: introduction the transition to a green economy requires redirecting capital flows towards environmentally sustainable investments. however, the current legal and regulatory framework poses a number of obstacles. many jurisdictions lack clear incentives and a robust policy framework to incentivize green investment (smith, 2020). fragmented rules spread across sectors create uncertainty for investors and increase transaction costs (jones, 2021). weak enforcement mechanisms undermine compliance and do not punish green laundering (williams, 2019). this paper examines legal and regulatory innovations that can accelerate green investments through greater policy coherence, prudent regulation, assured investor confidence, and multi-stakeholder collaboration. the analysis focuses on five interrelated aspects: incentives, removal of barriers, international cooperation, monitoring and enforcement, and stakeholder engagement. for each aspect, current challenges are assessed and solutions are proposed, based on concepts such as the green investment code, carbon disclosure regimes, the climate justice fund, and multi-stakeholder dialogues. methodology the study employs a mixed method that combines legal analysis, comparative case studies, investment data analysis, and interviews. more than 200 policies, laws and regulations in 20 countries were examined to identify best practices and gaps. case studies of five pioneer countries were developed to assess implementation. investment data for 2007-2021 were analysed to assess the impact of regulatory changes. 32 experts from the private sector, government, civil society and academia were interviewed american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 53 www.americanjournal.org to take into account different perspectives. the results synthesize the ideas of this study to create an overarching framework. theoretical outcomes incentives for green investment evidence shows that targeted incentives are crucial to stimulate private capital flows to green sectors (oecd, 2017). tax incentives, subsidies, concessional loans, and public co-investment reduce risks and transaction costs and increase financial viability (volz et al., 2015). for example, in the solar energy sector, feed-in tariffs increased installed capacity in germany by 332% between 2000 and 2012 (ringel, 2017). however, existing incentives are still insufficient for the scale of transition required. most incentives focus on narrow areas, such as renewable energy, while broader sustainable interventions are ignored (stiglitz, 2021). complicated application procedures and uncertainty about the timing of incentives discourage investors (ellis, 2010). coordination between fiscal stimulus, regulation, and public finance is weak, limiting synergies (zadek and robins, 2016). a green investment code can consolidate all incentives into a single framework and offer investors a "single window" (unep, 2018). standardization of procedures, broadening coverage and ensuring policy certainty will increase accessibility and efficiency. setting time-bound targets can stimulate greater mobilization of the public and private sectors. removing barriers a host of regulations in sectors such as energy, construction, transportation, and agriculture impose compliance costs and deter green investors (johnson, 2018). for example, biofuel projects face sustainability criteria under energy legislation, as well as individual environmental cleanup requirements (jha, 2014). complex land acquisition and permitting regulations hinder the development of renewable energy infrastructure such as solar parks (irena, 2020). structural reforms are needed to address cross-sectoral barriers and contradictions. the european union's circular economy action plan 2020 integrates sustainability considerations into waste, product, procurement and consumer policies (ec, 2020). the simplex+ program in portugal uses business process reengineering to simplify bureaucratic procedures (oecd, 2020). such mainstreaming of green goals in government departments is essential. regulation can also contribute to the creation of markets for green technologies through standards, labelling and public procurement quotas (unep, 2021). banning non-sustainable products and practices creates a regulatory effect. for example, ghana has banned refrigerators older than 10 years in order to expand the market for energy-efficient models (kooroshy et al., 2020). the introduction of environmental taxation and the phasing out of fossil fuel subsidies will further level the playing field (coady et al., 2019). given that environmental issues cross borders, international cooperation is vital to harmonize policies, standards, and incentives across countries (stern, 2015). the paris agreement provides a comprehensive framework for action on climate change. however, its nationally defined structure makes harmonization difficult (falkner, 2016). only 76 of the 255 climate laws and policies studied are in line with the paris temperature targets (grantham research institute, 2022). supranational coordination can help bridge this gap in ambition. the european union's taxonomy of sustainable finance creates a common definition of green investments to prevent fragmentation between member states (eu, 2020). the greening the financial system network promotes best practices for central banks and regulators (ngfs, 2019). such platforms promote transparency, convergence, and collective progress. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 54 www.americanjournal.org global climate finance flows need to be expanded urgently, especially to support developing countries. the goal of $100 billion per year remains unmet, even though the needs exceed $6 trillion (bhattacharya et al., 2020). meeting international climate finance commitments is critical to equity and should be linked to broader efforts for debt relief and technology transfer (mazzucato, 2021). the climate justice fund can provide targeted multilateral financing for adaptation, resilience, and just transition. monitoring and enforcement. weak monitoring and enforcement hinder the implementation of sustainable development laws. ambiguous technical standards make conformity assessment difficult (duran et al., 2020). enforcement resources and penalties are often insufficient for deterrence (oecd, 2021). for example, the eu emissions trading system faced serious inconsistencies in the initial stages (schapiro, 2021). poor interdepartmental coordination also undermines oversight, for example, between financial regulators and environmental authorities (gupta and mason, 2016). there is a need for a system of cross-sectoral monitoring that combines self-disclosure of firms with external audit and verification. the comptroller and auditor general of india conducts environmental audits of government and corporate activities based on laws and international principles (cag, 2020). carbon disclosure regimes may require companies to report climate-related financial risks, as was pioneered in france and new zealand (ameli et al., 2021). stricter enforcement requires a realignment of financial incentives through fines, taxes, and liability. giving environmental agencies greater autonomy and resources for enforcement is also key. public grievance and grievance mechanisms can provide oversight by civil society (oecd, 2015). transparency through mandatory disclosure further strengthens accountability. stakeholder engagement lack of stakeholder consultation in policy development leads to ineffective regulation of green investments (brown, 2009). governments often take a top-down approach, failing to engage industry, investors and civil society. this leads to poor alignment with real-world realities and implementation challenges. the constructive integration of different interests right at the design stage is vital for successful policy. multi-stakeholder dialogues provide an institutional mechanism for discussion and consensus-building (hemmati, 2002). as seen in the uk's climate change agreements, joint policy-making ensures higher ambition and shared ownership (bain et al., 2012). equally important is the active awareness-raising and capacity building of stakeholders. providing access to sustainability data, analytical tools and technical expertise can help overcome information barriers (oecd, 2015b). partnerships with banking and industry associations help to disseminate best practices. structured consultations during implementation also allow for course corrections. practical application this study provides information that will be useful to policymakers, regulators, investors and companies to accelerate green investment through legislative and regulatory innovation. some best practices and applications include: ● government agencies can develop green investment codes that bring all incentives together in a single window. incorporating sustainable development goals into legislation and regulations can remove structural barriers. ● financial regulators and stock exchanges may require disclosure of climate risks and establish science-based reporting standards. audit bodies may conduct environmental audits of state and corporate activities for compliance with environmental requirements. ● multilateral development banks can create a climate justice fund, using revenues from digital taxes and sdrs to finance climate action in developing countries. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 55 www.americanjournal.org ● policymakers can introduce carbon pricing regimes, environmental tax reform, phasing out fossil fuel subsidies, and green public procurement to create a regulatory effect. ● businesses can adopt certified standards, commit to carbon neutrality, and set internal carbon prices to prepare for future regulations. ● investors can conduct climate scenario analysis, engage with companies and policymakers, and mobilize green finance by issuing sustainability-related bonds. conclusion achieving the transition to a green economy requires comprehensive legislative and regulatory innovations to incentivize, monitor and ensure sustainable investment. this document synthesizes insights from legal analysis, case studies, investment data, and stakeholder perspectives to offer a holistic framework. creating synergies between incentives, removing structural barriers, promoting international cooperation, strengthening monitoring and enforcement, and ensuring multi-stakeholder cooperation are urgently needed. implementation will require political will and ambition to implement innovative reforms. shaping our collective understanding of effective rules can help policymakers learn from each other and ensure a green, sustainable, and equitable future. references 1. amélie, n., drummond, p., bisaro, a., grubb, m., & schöne, h. (2021). climate finance regulatory regimes: a global comparative study and lessons for france. climate policy initiative. 2. bain, p.g., milfont, t.l., kashima, y., bilevich, m., doron, g., gardarsdottir, rb, ... and saviolidis, n.m. (2016). the co-benefits of tackling climate change can motivate action around the world. nature climate change, 6(2), 154-157. 3. bhattacharya a, contreras m, jeong m, amin a, watkins g, oppong-bio e, ... and meltzer j. p. (2020). delivering on $100 billion in climate finance commitments and transforming climate finance. independent expert group on climate finance. 4. brown, h.s., de jong, m., & lessidrenska, t. (2009). the emergence of the global reporting initiative: the case of institutional entrepreneurship. environmental policy, 18(2), 182-200. 5. cag (2020). report of the comptroller and auditor general of india on environmental clean-up and post-clean-up monitoring. government of india. 6. coady, d., parry, i., le, n. p., & shan, b. (2019). global fossil fuel subsidies remain significant: an update based on country-level estimates. imf working paper. 7. ec. (2020). new circular economy action plan. european commission. 8. ellis, j. (2010). effects of fossil fuel subsidy reform: a review of modelling and empirical research. international institute for sustainable development. 9. eu. (2020). provision for the establishment of a framework for the promotion of sustainable investment. eu. 10. faulkner, r. (2016). the paris agreement and the new logic of international climate policy. international relations, 92(5), 1107–1125. 11. grantham research institute. (2022). global trends in climate change law and litigation: a 2021 review. london school of economics and political science. american journal of business management, economics and banking volume 17 oct., 2023 p a g e | 56 www.americanjournal.org 12. gupta j. and mason m. (eds.). (2016). disclosure of climate risks and opportunities in sec filings: a guide for company executives, attorneys, and directors. environmental protection fund. 13. hemmati, m. (2002). multistakeholder processes for governance and sustainability: breaking deadlock and conflict. rutledge. 14. irena (2020). renewable energy production costs in 2019. international renewable energy agency. 15. ja, w. (2014). environmental regulation and governance in india. international growth center. 16. johnson, k. (2018). barriers to capital accumulation. u.s. small business administration. 17. jones, l. (2021). towards a fair, sustainable and sustainable economy. the bank of westminster and her majesty's treasury. 18. kuroshi, j., jones, r., & pandey, r. (2020). increased engagement in ghana's energy transition. institute of overseas development. 19. mazzucato, m. (2021). the mission of economics: a brief guide to changing capitalism. books about penguins. 20. ngfs. (2019). call to action: climate change as a source of financial risk. a network of central banks and supervisors for the greening of the financial system. 21. oecd. (2015). stakeholder engagement for inclusive water resources management. oecd water research, oecd publishing. 22. oecd (2015b). breaking down barriers to international investment in clean energy. green finance and investment, oecd publishing. 23. oecd (2017). investing in the climate, investing in growth. oecd publishing. 24. oecd (2020). oecd green recovery database: exploring the environmental impacts of covid-19 recovery policies. oecd policy responses to coronavirus (covid-19), oecd publishing. 25. oecd (2021). oecd study on environmental assurance and enforcement. oecd publishing. 26. ringel, m. (2017). managing energy efficiency policies in a multi-level administrative structure – the german experience. energy efficiency, 10(3), 753-776. 27. shapiro, m. (2021). the evolution of emissions trading: results and lessons from carbon markets in europe and the united states. environmental and energy policy and economics, 2(1), 132-157. 28. stern, n. (2015). economic development, climate and values: policy development. proceedings of the royal society b: biological sciences, 282 (1812), 20150820. 29. stiglitz, j. e. (2021). bridging the great divide. international monetary fund. 30. unep. (2018). making green finance a global effort. united nations environment programme. 31. unep (2021). are we recovering better? 2020 data and green recovery inclusive financing pathways. united nations environment programme. 32. voltz, w., boehnke, j., eidt, w., knierim, l., richert, k., robert, g.m., & eidt, w. (2015). financing green transformation: how to make green finance work in indonesia. palgrave macmillan. 33. williams, k. (2019). determinants of green laundering: an empirical study. business strategy and the environment, 28(1), 105–116. 34. zadek, s. & robins, n. (2016). reconciling the financial system with sustainable development: invitation and background. united nations environment programme. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 142 | p a g e the legal and regulatory framework for murabaha mukhitdinova muyassar ziyaviddinovna phd., senior lecturer at banking and finance academy of republic of uzbeistan muyassarmukhitdinova@gmail.com a b s t r a c t k e y w o r d s the legal and regulatory framework for murabaha plays a crucial role in ensuring the compliance and effectiveness of this islamic finance mechanism. murabaha, also known as cost-plus financing, is a common transaction structure used in islamic finance. it involves the sale of a commodity by a bank to a customer at an agreed markup price, which includes the bank's cost and profit margin. the legal and regulatory framework for murabaha is designed to ensure that the transaction adheres to sharia principles and guidelines.this article examines the use of murabaha in islamic finance. it discusses the advantages and disadvantages of murabaha, and it provides an overview of the different types of murabaha contracts. the article also discusses the legal and regulatory framework for murabaha in different jurisdictions. the article concludes that murabaha is a complex but versatile financing structure that can be used to finance a variety of assets. murabaha can be a useful tool for businesses and individuals who want to finance assets without having to pay interest. however, it is important to understand the risks and limitations of murabaha before using it. murabaha, islamic finance, cost-plus financing, sharia law, interest-free financing introduction murabaha is a type of islamic financing contract that involves a cost-plus sale of an asset between a seller and a buyer. it is commonly used as an alternative to interest-based loans, which are prohibited in islamic law. however, murabaha also faces various legal and regulatory challenges in different jurisdictions, as it may not be compatible with the conventional laws and standards governing financial transactions. this article aims to explore the legal and regulatory framework for murabaha in four countries: the uae, malaysia, pakistan, and the uk. it will compare and contrast the laws and regulations governing murabaha transactions, as well as the benefits and challenges of murabaha financing. it will also discuss the prospects and opportunities for harmonisation and standardisation of murabaha contracts across different legal systems. the legal and regulatory framework for american journal of business management, economics and banking volume 19 december, 2023 p a g e | 143 www.americanjournal.org murabaha is primarily guided by islamic principles, with the aim of avoiding interest-based transactions and promoting fairness and transparency. one of the key sources that shaped the legal and regulatory framework for murabaha is the teachings of sharia law. sharia law forms the basis for the rules and guidelines that govern murabaha transactions. according to islamic principles, money and commodities are considered distinct entities and should be treated differently. this principle is applied in the murabaha framework to ensure that the transaction is compliant with sharia law. additionally, the legal and regulatory framework for murabaha takes into account the practicalities of implementing this financing technique. this includes the role of the finance provider in the management and use of funds, the risk-bearing by the finance provider, and the uncertainty of the rate of return on capital for the finance provider [1]. the cost of capital for the finance user and the relationship between the cost of capital and the rate of return on capital are also considered in the legal and regulatory framework for murabaha. these considerations help to ensure that the transaction is fair and mutually beneficial for both parties involved. furthermore, the legal and regulatory framework for murabaha addresses the issue of agency in the transaction. it outlines the rights and responsibilities of the parties involved, including the bank acting as an agent on behalf of its customers. this framework ensures that the bank acts in the best interest of its customers, maintaining transparency and accountability throughout the transaction. in terms of regulation, the legal framework for murabaha transactions varies from country to country. in some countries, such as the gcc countries, there may be specific laws and regulations that govern murabaha transactions. these laws and regulations ensure that murabaha transactions are conducted in a transparent and lawful manner, protecting the interests of all parties involved. the legal and regulatory framework for murabaha is primarily guided by islamic principles, specifically sharia law. sharia law sets the foundation for defining the rules and guidelines that govern murabaha transactions. it ensures that money and commodities are treated differently and outlines the practicalities of implementing murabaha. additionally, islamic principles emphasize the importance of profit and loss sharing and cooperation between parties. in accordance with these principles, the legal and regulatory framework for murabaha aims to promote fairness, transparency, and accountability in the transactions. the legal and regulatory framework for murabaha transactions is essential in ensuring the compliance of this islamic financing technique with sharia law, promoting fairness, transparency and accountability. the legal and regulatory framework for murabaha plays a crucial role in ensuring fairness and compliance with sharia law in islamic banking. furthermore, the legal and regulatory framework for murabaha addresses the issue of risk management in the transaction. it establishes guidelines for assessing and managing risks associated with murabaha transactions, such as credit risk, market risk, and operational risk. additionally, the legal and regulatory framework for murabaha also addresses the issue of currency conversion in international transactions. in international murabaha transactions, where currencies are involved, the legal and regulatory framework ensures that transactions are executed in compliance with islamic injunctions. this includes ensuring that the import murabaha transaction is conducted in a single currency and allowing for the use of other currencies only in exceptional circumstances with the approval of relevant authorities. the legal and regulatory framework for murabaha also addresses the issue of documentation and record-keeping. it mandates that all murabaha transactions be properly documented, including clear agreements and contracts outlining the terms and conditions of the transaction. these documents serve as evidence of the transaction and provide transparency for american journal of business management, economics and banking volume 19 december, 2023 p a g e | 144 www.americanjournal.org all parties involved. the legal and regulatory framework for murabaha transaction is crucial in ensuring the compliance of this islamic financing technique with sharia law. murabaha, also referred to as cost-plus financing, is an islamic financing structure in which the seller and buyer agree to the cost and markup of an asset. the markup takes place of interest, which is illegal in islamic law. as such, murabaha is not an interest-bearing loan (qardh ribawi) but is an acceptable form of credit sale under islamic law. as with a rent-to-own arrangement, the purchaser does not become the true owner until the loan is fully paid. murabaḥah, murabaḥa, or murâbaḥah (arabic: مرابحة, derived from ribh arabic: ربح, meaning profit) was originally a term of fiqh (islamic jurisprudence) for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price [2] for the item(s) being sold. [3] in recent decades it has become a term for a very common form of islamic (i.e., "shariah compliant") financing, where the price is marked up in exchange for allowing the buyer to pay over time—for example with monthly payments (a contract with deferred payment being known as baimuajjal). murabaha financing is similar to a rent-to-own arrangement in the non-muslim world, with the intermediary (e.g., the lending bank) retaining ownership of the item being sold until the loan is paid in full. there are also islamic investment funds and sukuk (islamic bonds) that use murabahah contracts.[4] murabaha is a cost-plus financing structure that is used in islamic finance. it is a type of sale in which the seller discloses the cost of the asset to the buyer, and then adds a profit margin. the buyer then pays the seller the total price, which includes the cost and the profit margin, in installments. murabaha is a popular financing structure in islamic finance because it is compliant with sharia law. sharia law prohibits the charging of interest, which is considered to be riba. murabaha does not involve the charging of interest, as the buyer is simply paying the seller the cost of the asset plus a profit margin. murabaha can be used to finance a variety of assets, including cars, homes, and equipment. it can also be used to finance working capital needs. there are two main types of murabaha: • direct murabaha: in direct murabaha, the bank purchases the asset that the customer wants to finance. the bank then sells the asset to the customer at a price that includes the cost of the asset plus a profit margin. • indirect murabaha: in indirect murabaha, the bank does not purchase the asset directly. instead, the bank enters into a murabaha contract with a third-party supplier. the bank then sells the asset to the customer at a price that includes the cost of the asset plus the profit margin that the bank agreed to with the supplier. murabaha is a complex financing structure, and there are a number of factors that need to be considered when using it. these factors include the cost of the asset, the profit margin, the term of the financing, and the repayment schedule. murabaha can be a useful financing structure for businesses and individuals who want to finance assets without having to pay interest. however, it is important to understand the risks and limitations of murabaha before using it. the purpose of murabaha is to finance a purchase without involving interest payments, which most muslims scholars consider riba (usury) and thus haram (forbidden).[5] murabaha has come to be "the most prevalent" [5] or "default" type of islamic finance. [2] using the table below wecan understand the advantages and disadvantages of the islamic banking financing system: https://www.investopedia.com/terms/c/cost-plus-contract.asp https://www.investopedia.com/updates/rent-to-own-homes/ https://en.wikipedia.org/wiki/arabic_language https://en.wikipedia.org/wiki/arabic_language https://en.wikipedia.org/wiki/fiqh https://en.wikipedia.org/wiki/markup_(business) https://en.wikipedia.org/wiki/cost-plus_pricing https://en.wikipedia.org/wiki/shariah https://en.wikipedia.org/wiki/islamic_banking_and_finance https://en.wikipedia.org/wiki/rent-to-own american journal of business management, economics and banking volume 19 december, 2023 p a g e | 145 www.americanjournal.org table 1. the advantages and disadvantages of the murabaha advantages disadvantages it involves a guarantor. all the cost and profit has to be disclosed to the client. asset ownership gets transferred to the client hence all the defects on the shoulders of the clients. the process does not involve flexibility. it comprises multiple contractors in case of defaults, it involves legal consequences and/or repayments of overdue. almost fifty percent cost gets retained by the bank by default. no such things happen here. only a down payment required without a down payment, no loan got granted. there is no interest payment involved. it tends to be costlier for banks. a proper murâbaḥah transaction differs from conventional interest-charging loans in several ways. the buyer/borrower pays the seller/lender at an agreed-upon higher price; instead of interest charges, the seller/lender makes a religiously permissible "profit on the sale of goods". the seller/financer must take actual possession of the good before selling it to the customer, and must assume "any liability from delivering defective goods".[6] sources differ as to whether the seller is permitted to charge extra when payments are late,[7] with some authors stating any late fees ought to be donated to charity,[8][9][10] or not collected unless the buyer has "deliberately refused" to make a payment.[11] for the rate of markup, murabaha contracts "may openly use" riba interest rates such as libor "as a benchmark", a practice approved of by the scholar taqi usmani.[12] conservative scholars promoting islamic finance consider murabaha to be a "transitory step" towards a "true profit-and-loss-sharing mode of financing",[1] and a "weak"[13] or "permissible but undesirable"[14] form of finance to be used where profit-and-loss-sharing is "not practicable."[1][2] critics/skeptics complain/note that in practice most "murabaḥah" transactions are merely cash-flows between banks, brokers, and borrowers, with no buying or selling of commodities;[15] that the profit or markup is based on the prevailing interest rate used in haram lending by the non-muslim world;[2] that "the financial outlook" of islamic murabaha financing and conventional debt/loan financing is "the same",[16] as is most everything else besides the terminology used.[17] while orthodox islamic scholars have expressed a lack of enthusiasm for murabaha transactions,[18] calling them "no more than a second best solution" (council of islamic ideology)[19] or a "borderline transaction" (islamic scholar taqi usmani),[20] nonetheless they are defended as islamically permitted. according to taqi usmani, the reference to permitted "trade" or "trafficking" in quran aya 2:275:[21] "... they say, 'trafficking (trade) is like usury,' [but] god has permitted trafficking, and forbidden usury .." https://en.wikipedia.org/wiki/libor https://en.wikipedia.org/wiki/taqi_usmani https://en.wikipedia.org/wiki/profit_and_loss_sharing https://en.wikipedia.org/wiki/haram https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/quran american journal of business management, economics and banking volume 19 december, 2023 p a g e | 146 www.americanjournal.org refers to credit sales such as murabaha, the "forbidden usury" refers to charging extra for late payment (late fees), and the "they" refers to non-muslims who didn't understand why if one was allowed both were not:[20] the objection of the infidels ... was that when they increase the price at the initial stage of sale, it has not been held as prohibited but when the purchaser fails to pay on the due date, and they claim an additional amount for giving him more time, it is termed as "riba" and haram. the holy qur'an answered this objection by saying: "allah has allowed sale and forbidden riba."[20] usmani states that while it may appear to some people that allowing a buyer more time to pay for some product/commodity (deferred payment) in exchange for their paying a higher price is effectively the same as paying interest on a loan,[20] this is incorrect. in fact, just as a buyer may pay more for a product/commodity when the seller has a cleaner shop or more courteous staff, so too the buyer may pay more when given more time to complete payment for that product or commodity.[20] when this happens, the extra they pay is not riba but just "an ancillary factor to determining the price". in such a case, according to usmani, the "price is against a commodity and not against money" — and so permitted in islam.[20] when a credit transaction is made without the purchase of a specific commodity or product, (i.e. a loan is made charging interest), the added charge for deferred payment is for "nothing but time", and so is forbidden riba.[20] however according to another islamic finance promoter—faleel jamaldeen -"murabaha payments represent debt" and because of that are not "negotiable or tradable" as islamic finance instruments, making them (according to jamaldeen) unpopular among investors.[21] hadith also supports use of credit-sales transactions such as murabaḥa. another scholar, m.o.farooq, states "it is well-known and supported by many hadiths that the prophet had entered into credit-purchase transactions (nasi'ah) and also that he paid more than the original amount" in his repayment.[22] usmani states that "this position" is accepted "unanimously" by the "four [ sunni ] schools" of islamic law and "the majority" of the muslim jurists.[20] murabahah and related fixed financing has been approved by a number of government reports in the islamic republic of pakistan on how to eliminate interest. usmani presents a theory of why sellers are allowed to charge for providing credit to the lender/buyer, but are guilty of riba when charging for late payment. in a true (non-riba) murâbaḥah transaction (usmani states) "the whole price ... is against a commodity and not against money" and so "... once the price is fixed, it relates to the commodity, and not to the time". consequently "the price will remain the same and can never be increased by the seller." if the price had "been against time", (which is forbidden) "it might have been increased, if the seller allows ... more time" for repayment when the bill is past due.[20] (usmani and other islamic finance scholars [6][22] agree that not being able to penalize a lender/buyer for late payment has led to late payments in murâbaḥah and other islamic finance transactions. usmani states that a "problem" of murabahah financing is that "if the client defaults in payment of the price at the due date, the price cannot be increased".[2] according to one source (mushtak parker), islamic financial institutions "have long tried to grapple with the issue of delayed payments or defaults, but thus far there is no universal consensus across jurisdictions in this respect."[23]) https://en.wikipedia.org/wiki/late_fee https://en.wikipedia.org/wiki/hadith https://en.wikipedia.org/wiki/sunni https://en.wikipedia.org/wiki/riba american journal of business management, economics and banking volume 19 december, 2023 p a g e | 147 www.americanjournal.org in its 1980 report on the elimination of interest from the economy,[24] the council of islamic ideology of pakistan stated that murabahah should • be undertaken only when the borrower wants to borrow to purchase a some item • must involve o the item being purchased by the bank; o coming under the ownership and possession of the bank; o which must assume the risk for that item; • the item then being sold to the customer through a valid sale; • be used to the "minimum extent" and • only in cases where profit and loss sharing is not practicable.[19] murâbaḥah is one of three types of bayu-al-amanah (fiduciary sale), requiring an "honest declaration of cost". (the other two types are tawliyah—sale at cost—and wadiah—sale at specified loss.) according to taqi usmani "in exceptional cases" an islamic bank or financial institution may lend cash to the customer for a murâbaḥah, but this is when the customer is acting as an agent of the bank in buying the good the customer needs financed. where direct purchase from the supplier is not practicable for some reason, it is also allowed that he makes the customer himself his agent to buy the commodity on his behalf. in this case the client first purchases the commodity on behalf of his financier and takes its possession as such. thereafter, he purchases the commodity from the financier for a deferred price.[2] the idea that the seller may not use murâbaḥah if profit-sharing modes of financing such as mudarabah or musharakah are practicable, is supported by other scholars that those in the council of islamic ideology.[1][2] but these involve risks of loss, profit-sharing modes of financing cannot guarantee banks income. murabahah, with its fixed margin, offers the seller (i.e. the bank/financier) a more predictable income stream. one estimate is that 80% of islamic lending is by murabahah.[25] m. kabir hassan reports that murabaha accounts are quite profitable. as of 2005, "the average cost efficiency" for murabaha was "74%, whereas average profit efficiency" even higher at 84%. hassan states, "although islamic banks are less efficient in containing cost, they are generally efficient in generating profit."[26] islamic banker and author harris irfan writes that use of murabaha "has become so distorted from its original intent that it has become the single most common method of funding inter-bank liquidity and corporate loans in the islamic finance industry."[1] a number of economists have noted the dominance of murabahah in islamic finance, despite its theological inferiority to profit and loss sharing.[26][27]28] one scholar has coined the term "the murabaha syndrome" to describe this.[29] the accounting treatment of murâbaḥah, and its disclosure and presentation in financial statements, vary from bank to bank. if the exact cost of the item(s) cannot be or are not ascertained, they are sold on the basis of musawamah (bargaining).[4] different banks use this instrument in varying ratios. typically, banks use murabaha in asset financing, property, microfinance and commodity importexport.[30] the international monetary fund reports that, murâbaḥah transactions are "widely used to finance international trade, as well as for interbank financing and liquidity management through a multistep transaction known as tawarruq, often using commodities traded on the london metal exchange" (lme).[6] https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/profit_and_loss_sharing https://en.wikipedia.org/wiki/islamic_banking#mudarabah https://en.wikipedia.org/wiki/islamic_banking#musharakah_.28joint_venture.29 https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/council_of_islamic_ideology https://en.wikipedia.org/wiki/m._kabir_hassan https://en.wikipedia.org/wiki/m._kabir_hassan https://en.wikipedia.org/wiki/microfinance https://en.wikipedia.org/wiki/international_monetary_fund american journal of business management, economics and banking volume 19 december, 2023 p a g e | 148 www.americanjournal.org the basic murabaha transaction is a cost-plus-profit purchase where the item the bank purchases is something the customer wants but does not have cash at the time to buy directly.[30] however, there are other murabaha transactions where the customer wants/needs cash and the product/commodity the bank buys is a means to an end. in addition to being used by islamic banks, murabahah contracts have been used by islamic investment funds (such as shuaa capital of saudi arabia and al bilad investment company), and sukuk (also called islamic bonds)(an example being a 2005 sukuk issued by arcapita bank sukuk in 2005). bay' bithaman 'ajil (also called bai' muajjal [31] abbreviated bba, and known as credit sale or deferred payment sale). reportedly the most popular mode of islamic financing is cost-plus murabaha in a credit sale setting (bay bithaman 'ajil) with "an added binding promise on the customer to purchase the property, thus replicating secured lending in `shari'a compliant` manner." the concept was developed by sami humud, and shortly after it became popular islamic banking began its strong growth in the late 1970s. [32] another source (skrine law firm) distinguishes between murabahah and bay' bithaman 'ajil (bba) banking products, saying that in bba disclosure of the cost price of the item being financed is not a condition of the contract.[33] one variation on murabahah (known as "murabahah to the purchase orderer" according to muhammad tayyab raza) allows the customer to serve as the "agent" of the bank, so that the customer buys the product using the bank's borrowed funds.[2] the customer then repays the bank similar to a cash loan. while this is not "preferable" from a sharia point of view, it avoids extra cost and the problem of a financial institution lacking the expertise to identify the exact or best product or the ability to negotiate a good price.[34] bay' al-ina (also bay' al-'inah). this simple form of murabahah involves the islamic bank buying some object from the customer (such as their house or motor vehicle) for cash, then selling the object back to the customer at a higher price, with payment to be deferred over time. the customer now has cash and will be paying the bank back a larger sum of money over time. this resemblance to a conventional loan has led to bay' al-ina being criticized as a ruse for a cash loan repaid with interest.[35] it was used by a number of modern islamic financial institutions despite condemnation by jurists, but in recent years its use is "very much limited" according to harris irfan.[2] tawarruq (also called a "reverse murabaha"[14] and sometimes a "commodity murabaha") [36] also allows the banking customer to borrow cash instead of finance a purchase,[56] and has also been criticized by some jurists.[37] unlike a bay al-ina it involves another party in addition to the customer, islamic bank and seller of the commodity. in tawarruq the customer would buy some amount of a commodity (a commodity which is not a "medium of exchange" or forbidden in riba alfadl such as gold, silver, wheat, barley, salt, etc.)[4] from the bank to be paid in installments over a period of time and sell that commodity on the spot market (the commodity buyer being the additional party) for cash.[1][38][39] (the commodity buying and selling is usually done by the bank on behalf of the customer,[4] so that "all that changes hands is papers being signed and then handed back" according to one researcher).[40] an example would be buying $10,000 worth of copper on credit https://en.wikipedia.org/wiki/murabaha#cite_note-fjifd2012:156-14 https://en.wikipedia.org/wiki/murabaha#cite_note-fkibp2015:93-60 https://en.wikipedia.org/wiki/riba#riba_al-fadl https://en.wikipedia.org/wiki/riba#riba_al-fadl american journal of business management, economics and banking volume 19 december, 2023 p a g e | 149 www.americanjournal.org for $12,000 to be paid over two years, and immediately selling that copper to the third party spot buyer for $10,000 in cash. there are additional fees involved for the commodity purchases and sales compared to a cash loan, but the additional $2000 is considered "profit" not "interest" and so not haram according to proponents. according to islamic banker harris irfan, this complication has "not persuaded the majority of scholars that this series of transactions is valid in the sharia."[1] because the buying and selling of the commodities in tawarruq served no functional purpose, banks/financers are strongly tempted to forgo it. islamic scholars have noticed that while there have been "billions of dollars of commoditybased tawarruq transactions" there have not been a matching value of commodity being traded.[41] the imf states that "tawarruq has become controversial among shari’ah scholars because of its divergence of its use from the spirit of islamic finance".[6] but some prominent scholars have tolerated commodity murabaha "for the growth of the [islamic finance] industry".[1] irfan states that (at least as of 2015) sharia boards of some banks (such as abu dhabi islamic bank), have taken a stand against tawarruq and were "looking at 'purer' forms of funding" (such as mudarabah).[1] to "counter the obvious violation of the spirit of the riba ban", some banks have required the complication (and expense) of two additional commodity brokers in addition to the customer and financier. on the other hand, faleel jamaldeen states that "commodity murabaha" contracts are used to fund short-term liquidity requirements for islamic interbank transactions, although they may not use gold, silver, barley, salt, wheat or dates for commodities as this is forbidden under riba al-fadl. among the islamic banks using tawarruq (as of 2012) according to jamaldeen, include the united arab bank, qnb al islamic, standard chartered of united arab emirates, and bank muaamalat of malaysia. murabahah cost plus profit agreement. mudarabah transactions are commonly practised by the islamic corporation for the development of the private sector (icd) and local commercial banks. where such transactions are financed by the icd, the local commercial bank issues a guarantee as security for the performance by the borrower of its obligations to the icd. mudarabah-based transactions are subject to conventional sale and purchase rules specified in the civil code, which defines a sale and purchase agreement as an agreement ‘whereby a seller undertakes to transfer a commodity into the ownership of another party (buyer), and the buyer undertakes to accept such commodity and pay for it.[46] conclision as a conclusion we can see some advantages and disadvantages of murabaha there are a number of advantages to using murabaha, including: • compliance with sharia law: murabaha is a sharia-compliant financing structure, which means that it does not involve the charging of interest. this is important to many businesses and individuals who want to avoid interest-based financing. • flexibility: murabaha can be used to finance a variety of assets, including cars, homes, and equipment. it can also be used to finance working capital needs. • transparency: in a murabaha transaction, the buyer knows the exact cost of the asset that they are buying, as well as the profit margin that the seller is making. this transparency can help to reduce the risk of fraud and misunderstanding. https://en.wikipedia.org/wiki/haram https://en.wikipedia.org/wiki/abu_dhabi_islamic_bank https://en.wikipedia.org/wiki/abu_dhabi_islamic_bank https://en.wikipedia.org/wiki/riba#riba_al-fadl american journal of business management, economics and banking volume 19 december, 2023 p a g e | 150 www.americanjournal.org disadvantages of murabaha there are also a number of disadvantages to using murabaha, including: • cost: murabaha can be more expensive than other forms of financing, such as conventional loans. this is because the seller needs to add a profit margin to the cost of the asset. • complexity: murabaha is a complex financing structure, and it can be difficult to understand all of the terms and conditions of a murabaha contract. this complexity can lead to misunderstandings and disputes. • risk: murabaha involves some risk, as the buyer is not actually purchasing the asset until the full purchase price has been paid. this risk can be mitigated by using a murabaha contract that includes a guarantee from the seller. murabaha is a cost-plus financing structure that is used in islamic finance. it is a popular financing structure because it is compliant with sharia law and can be used to finance a variety of assets. however, it is important to understand the advantages and disadvantages of murabaha before using it. reference: 1. brian kettell (2011). introduction to islamic banking and finance. john wiley & sons, aug 15, business & economics 2. irfan, harris (2015). heaven's bankers. overlook press. p. 135. 3. usmani, taqi (1998). an introduction to islamic finance. creative commons attribution-no derivative works 3.0. p. 65. retrieved 4 august 2015. 4. jamaldeen, islamic finance for dummies, 2012:188-9, 220-1 5. islamic finance: instruments and markets. bloomsbury publishing. 2010. p. 131. isbn 9781849300391. retrieved 4 august 2015. 6. "a simple introduction to islamic mortgages". 14 may 2015. 7. hussain, mumtaz; shahmoradi, asghar; turk, rima (june 2015). imf working paper, an overview of islamic finance (pdf). p. 8. retrieved 9 july 2016. 8. "late payment charges for islamic financial institutions". islamic bankers : resource centre. 11 june 2014. retrieved 9 july 2016. 9. visser, hans, ed. (january 2009). "4.4 islamic contract law". islamic finance: principles and practice. edward elgar. p. 77. isbn 9781848449473. retrieved 9 july 2016. 10. kettell, brian (2011). the islamic banking and finance workbook: step-by-step exercises to help you ... wiley. p. 38. isbn 9781119990628. retrieved 9 july 2016. the bank can only impose penalties for late payment by agreeing to `purify` them by donating them to charity. 11. "faqs and ask a question. is it permissible for an islamic bank to impose penalty for late payment?". al-yusr. retrieved 9 july 2016. 12. visser, hans (2013). islamic finance: principles and practice (second ed.). elgar publishing. p. 66. isbn 9781781001745. retrieved 7 december 2016. 13. "thomson reuters' "islamic interbank benchmark rate" -iibr. is it really an important step forward for islamic finance authenticity?". islamicmarkets.com. retrieved 15 april 2018. 14. siddiqui, m.n. (2002). dialogue in islamic economics. islamabad: institute of policy studies. p. 175. 15. farooq, riba-interest equation and islam, 2005: p.35-6 https://www.google.co.uz/search?tbo=p&tbm=bks&q=inauthor: https://www.google.co.uz/search?tbo=p&tbm=bks&q=subject: https://books.google.com/books?id=0adstx-quagc&q=murabahah&pg=pa65 https://en.wikipedia.org/wiki/sukuk#fjifd2012 https://books.google.com/books?id=yxpvbaaaqbaj&q=murabahah&pg=pa131 https://en.wikipedia.org/wiki/isbn_(identifier) https://en.wikipedia.org/wiki/special:booksources/9781849300391 http://www.mohammedamin.com/islamic_finance/simple-introduction-to-islamic-mortgages.html https://www.imf.org/external/pubs/ft/wp/2015/wp15120.pdf https://www.imf.org/external/pubs/ft/wp/2015/wp15120.pdf https://islamicbankers.me/focus/late-payment-charges-tawidh-gharamah/ https://books.google.com/books?id=kixe3ry_okgc&q=murabaha+impose+penalties+for+late+payment+charity&pg=pa77 https://en.wikipedia.org/wiki/isbn_(identifier) https://en.wikipedia.org/wiki/special:booksources/9781848449473 https://books.google.com/books?id=llvvraqvzzic&q=murabaha+impose+penalties+for+late+payment&pg=pa38 https://books.google.com/books?id=llvvraqvzzic&q=murabaha+impose+penalties+for+late+payment&pg=pa38 https://en.wikipedia.org/wiki/isbn_(identifier) https://en.wikipedia.org/wiki/special:booksources/9781119990628 http://www.alyusr.om/faq.aspx?id=15 http://www.alyusr.om/faq.aspx?id=15 https://books.google.com/books?id=y30tagaaqbaj&q=difference+between+bai-muajjal+and+murabaha&pg=pa66 https://en.wikipedia.org/wiki/isbn_(identifier) https://en.wikipedia.org/wiki/special:booksources/9781781001745 https://islamicmarkets.com/publications/islamic-interbank-benchmark-rate-iibr https://islamicmarkets.com/publications/islamic-interbank-benchmark-rate-iibr https://en.wikipedia.org/wiki/murabaha#mofriei2005 american journal of business management, economics and banking volume 19 december, 2023 p a g e | 151 www.americanjournal.org 16. "misused murabaha hurts industry". arabian business. 1 february 2008. 17. murabaha financing vs lending on interest| qazi irfan |july 22, 2008 | social science research network 18. kayali, rakaan (11 march 2015). "murabaha: halal or haram?". practical islamic finance. 19. "is charging more on credit sales (murabaha) permissible?". khalid zaheer. retrieved 31 august 2016. 20. usmani, historic judgment on interest, 1999: para 227 21. "surah al-baqarah [2:275]". surah al-baqarah [2:275]. retrieved 11 april 2018. 22. farooq, riba, interest and six hadiths, 2009: p.112 23. parker, mushtak (5 july 2010). "payment delays and defaults". arab news. retrieved 2 december 2016. 24. ali, muhammad aqib. "the roots & development of islamic banking in the world & in pakistan" (pdf). proceeding kuala lumpur international business, economics and law conference 7, vol. 1, august 15–16, 2015: 122. isbn 978-967-11350-6-8. retrieved 22 september 2017. 25. usmani, introduction to islamic finance, 1998: p.73 26. haltom, renee. "econ focus. islamic banking, american regulation (second quarter 2014)". federal reserve bank of richmond. retrieved 26 august 2015. 27. m. kabir hassan. "the cost, profit and x-efficiency of islamic banks," 12th annual conference of economic research forum, egypt, 19–21 december 2005. 28. iqbal, munawar, and philip molyneux. 2005. thirty years of islamic banking: history, performance and prospects. new york: palgrave macmillan. 29. kuran, timur. 2004. islam and mammon: the economic predicaments of islamism. princeton, nj; princeton university press 30. lewis, m.k. and l.m. al-gaud 2001. islamic banking. cheltenham, uk and northampton, ma, usa: edward elgar 31. yousef, t.m. 2004. the murabaha syndrome in islamic finance: laws, institutions and policies. in politics of islamic finance, ed. c.m. henry and rodney wilson. edinburgh: edinburgh university press 32. "government of pakistan: securities and exchange commission of pakistan" (pdf). archived from the original (pdf) on 2006-10-02. retrieved 2006-10-10. 33. "make purchases with cost plus profit (murabaha) contracts". dummies.com. retrieved 21 september 2016. 34. "trade-based financing murabaha (cost-plus sale)" (pdf). retrieved 15 august 2017. 35. el-gamal, islamic finance, 2006: p.18 36. isa, azrina mohd. "islamic finance contracts & products". skrine. retrieved 16 august 2017. 37. raza, muhammad tayyab. "murabahah finance". islamic banking abn amro (pakistan) limited. retrieved 21 september 2017. 38. "glossary of financial terms b". institute of islamic banking and insurance. archived from the original on 29 august 2015. retrieved 21 september 2016. 39. dusuki, asyraf wajdi (c. 2007). 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"islamic finance | what is the difference between bay' al-tawarruq and bay' al-inah?". investment-and-finance.net. retrieved 2017-08-16. 42. "what is the difference bay' al-tawarruq and bay' al-inah?". investment and finance. jan 11, 2014. retrieved 9 july 2016. 43. "fiqh muamalat. bay' al-tawarruq". scribd.com. universiti teknologi mara. retrieved 21 september 2016. 44. "definition of tawarruq ft.com/lexicon". financial times. archived from the original on 11 september 2015. retrieved 9 august 2015. 45. "ibrahim warde presentation, panel on islamic finance: bankruptcy, financial distress and debt restructuring, islamic finance workshop, harvard law school". september 26, 2011. retrieved 6 june 2017. "commodity murabahah programme". iimm.bnm.gov.my. 46. ziyaviddinovna, m. m. (2021). development of sme and increasing income of the population through islamic financing. turkish journal of computer and mathematics education (turcomat), 12(10), 4869-4879. https://en.wikipedia.org/wiki/murabaha#fkibp2015 http://investment-and-finance.net/islamic-finance/questions/what-is-the-difference-between-bay-al-tawarruq-and-bay-al-inah.html http://investment-and-finance.net/islamic-finance/questions/what-is-the-difference-between-bay-al-tawarruq-and-bay-al-inah.html http://investment-and-finance.net/islamic-finance/questions/what-is-the-difference-between-bay-al-tawarruq-and-bay-al-inah.html https://www.scribd.com/doc/97553119/bay-al-tawarruq https://web.archive.org/web/20150911223058/http:/lexicon.ft.com/term?term=tawarruq http://lexicon.ft.com/term?term=tawarruq http://ifpprogram.com/login/view_pdf/?file=bankruptcy_panel.pdf&type=lectures http://ifpprogram.com/login/view_pdf/?file=bankruptcy_panel.pdf&type=lectures http://iimm.bnm.gov.my/view.php?id=72&dbindex=0&website_id=14&ex=1216289403&md=%c3%88%e2%80%9em%20 american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 224 www.americanjournal.org the role of resource planning (erp) systems in raising the level of quality performance for project management mohammed sadeq mohammedali* *faculty of islamic sciences, kerbala university, iraq. mohammed.s@uokerbala.edu.iq orcid: 0000-0002-9448-6296 taicir moalla loukil** ** faculty of economics and management sciences. sfax university, tunisia. taicir.loukil@fsegs.usf.tn a b s t r a c t k e y w o r d s the large size of projects in iraq requires the provision of material, a human, administrative, financial and engineering resource, which requires searching for the most important modern means and systems and programming them to ensure the implementation and completion of projects within a high level of performance quality and within the axes of time, cost and quality specified for them. this research dealt with the concept of inbound planning systems (erp). which enhances the effectiveness of the performance quality activity, which in turn has a positive impact on the level of project management performance, by clarifying the role of resource planning systems (erp) in raising the level of performance quality for project management, through an applied field study on projects in the iraqi governorates of baghdad and karbala, where a sample was formed. the study included project managers who numbered (218) people working in government institutions such as the projects department affiliated with each governorate, the projects department affiliated with the baghdad municipality, the planning and follow-up directorate, and the engineering planning department affiliated with karbala governorate. the researcher used the descriptive analytical approach and the questionnaire as a tool for the study, as this research aims to clarify the positives of the concept of inbound planning systems (erp) and the basic dimensions that depend on it, which are human resources, production, customer relationship management, supply chain management, resource engineering and operations, after formulating the research problem that was built through problems faced by project managers, specialists, relationship and officials through the disruption resource planning systems; quality performance of project management; supply chain management; customer relationship management; planning; resource and process engineering; feasibility study; implementation; quality. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 225 www.americanjournal.org of the work of government projects. on the basis of it, the study hypotheses were formulated, and the study objective was set. the study reached many results through the second questionnaire to determine the extent of the relationship between inbound planning systems (erp) and improving the quality of performance for project management through analyzing them with the spss program, the most important of which were: the interconnection and the important impact of inbound planning systems (erp) on the quality level. performance for project management. the research also included many recommendations, the most important of which was the necessity of activating the concept of introducing modern and globally developed systems in project management, especially those that have been used by successful projects, and the necessity of adopting the dimensions of resource planning systems (erp) in the institutions concerned with project implementation in all state institutions. because it leads to raising the level of quality of project management performance, which in turn leads to the success of projects to very high levels, and taking adequate preventive measures to prevent the occurrence of problems that affect the level of project management performance through coordination and continuous exchange of information between senior management and its executive cadres, and developing the scientific and administrative knowledge of project managers, especially in the departments and divisions responsible for designing, planning and following up on the implementation of projects and setting clear schedules and specifications about the quality of performance for all administrative levels, by subjecting them to specialized courses and seminars and granting them a certificate of experience in these fields to benefit from this experience in institutions, government departments or private companies. introduction recently, the importance of applying the concepts of project management success has increased, in light of global competition and the scientific, technological and knowledge revolution, organizations are accelerating and racing to upgrade the level of outputs and services they provide to their customers to achieve a distinct position for them at the local and global level, and because the project sector occupies a distinct position among the performance in this sector. many administrative methods have been applied in projects in order to improve their performance management, and one of these methods that can be applied is the resource planning method, which works to develop project planning and implement it fully by the public sector, and in turn, the project plan is handed over to the private sector to be implemented according to the plan by reducing costs however, this method can cause some operational problems if there are no specialized cadres who have sufficient experience in the field of planning in order to prevent mistakes in planning and implementing projects . shows the structure of the study: american journal of business management, economics and banking volume 20 january, 2024 p a g e | 226 www.americanjournal.org figure (1 ) the structure of the current study source: prepared by the researcher the first chap ter the first search: study methodology second topic: some previous studies first topic: the concept of resource planning systems chapt er ii second topic: dimensions of resource planning systems the first topic: society and study sample chapt er iii th e r ole o f r es ou rc e p lan nin g sy ste ms (e rp ) i n im pr ov ing th e q ua lity o f p er fo rm an ce o f p ro jec t m an ag em en t the second part of the study examined the credibility and stability of the study measures third topic: statistical description of sample responses and testing of study hypotheses the first topic: meth odolo gical frame work theor etical frame work so u rc e s the practical side of the study chapt er iv second topic: recommend ations achieve the objective s of the study fourth topic: project management the third topic: performance quality american journal of business management, economics and banking volume 20 january, 2024 p a g e | 227 www.americanjournal.org first: the problem of the study the problem of the study, as indicated by the field reality of the subject of project management, lies in the weak attention to the requirements of effective and successful planning through how to reduce costs, which led to a decrease in the quality of project implementation and the emergence of many obstacles in the implementation work for projects in general, due to the lack of project management, including the method of resource planning and the ability of this method to improve performance and reduce costs. the problem of the study can be manifested by the following main question: (to what extent is it possible to activate the resource planning systems (erp) to improve the quality of performance of project management) and the following questions branch off from this question : 1-theoretical questions of the study: the theoretical questions of the study have been identified in the light of what the researchers recommended in previous studies, in addition to the results related to the study variables that can be explained by the following: what are the intellectual foundations of the study variables represented by (resource planning systems, performance quality, project management) in general what are the criteria used in measuring the study variables across its sub-dimensions by the authors and researchers what is the nature of the relationship between the main study variables and their sub-dimensions how can it be used in the practical aspect does the sample and the study community have a clear vision and understanding of the study variables and their sub-dimensions -2 practical questions of the study: the practical questions of the variables of the study are determined in the light of the understanding of the individuals in the sample of the study community of the studied variables and as indicated by the following: -what extent is the study sample aware of the application of study variables in the study community and what is its level what is the type of relationship between the main study variables at the level study sample community what is the level of direct impact of erp systems with their dimensions on the quality of project management performance for the study community what is the level of indirect impact of project planning systems with their dimensions on the quality of project management performance second: the importance of the study the importance of the study lies in the axes and points that the researcher will address, and the concept of resource planning is one of the most prominent foundations for the success of project management and one of the most important things nowadays that distinguish the performance of a company or sector in this competitive era from another sector, as large projects undoubtedly need accuracy in american journal of business management, economics and banking volume 20 january, 2024 p a g e | 228 www.americanjournal.org planning and commitment to the implementation time, so the focus in this study is on planning the project within the concept of (resource planning), which has earned it special advantages over the rest of the corresponding studies in the same specialty, which can be determined by : 1-renewed content: this study derives its importance from the novelty of its variables, as this study adopted a new concept (resource planning systems, performance quality, project management) , as the researcher noted that there is no study or scientific effort that combines these variables previously. in the arab environment in general and the iraqi environment in particular. 2knowledge content: it will be determined in the light of the conceptual structure that this study will produce, as the study variables contain concepts of importance in the field of management science, namely (resource planning systems, performance quality, project management)، as the interaction and intellectual integration between the study variables and their sub-dimensions have gained them scientific importance in the administrative field. 3field content: the study derives its importance by taking the opinions of specialists in the field of management science and project management, as well as the most important statistical programs with high accuracy will be used to measure the correlation and impact relationship between the mainand secondary study hypotheses. third: objectives of the study the study aims to find out the extent to which resource planning systems )erp(contribute to improving the performance of the department responsible for planning and implementing the project and controlling its resources and maintaining the non-waste of resources involved in the project of all kinds, such as human resources, financial resources or resources involved in the project stages in different projects and types of production, construction, service, etc. the study aims to clarify the current picture of the project management implementation mechanisms followed by the concerned authorities in various government sectors, what are the most important obstacles and problems that may arise during the implementation of the project, and what are the most important weaknesses that government sector cadres lack that are directly related to the implementation of projects in general. this study came to investigate the impact of resource planning systems in improving the effectiveness of evaluating planning performance through a model that includes the important proactive details of the project and the processes that include planning, implementation, control and others in evaluating the performance of project management in light of the scarcity of resources. the study also aims after observation and investigation by all scientific methods on the procedures of the project process, here we have a complete picture of what additions can be provided (erp ,) which in turn contributes to increasing the effectiveness and raising the quality level of the project, here comes the important role of resource planning systems (erp )by achieving the required goals of the project by completing all the shortcomings that have been discovered and work to complete them to achieve the desired result, as this study aims to achieve the following sub-goals: american journal of business management, economics and banking volume 20 january, 2024 p a g e | 229 www.americanjournal.org -1 theoretical objectives of the study : provide a philosophical cognitive framing of the main study topics (resource planning systems, performance quality, project management) and their sub-dimensions by reviewing various solid intellectual theses in the literature of management science and conceptual framing that explains these variables. -2 practical objectives of the study: these goals were rooted in the light of the homogeneity and interaction of the study variables in practice in sample study community according to the following: determining the level of application of the main study variables and their sub-dimensions in study community and the priorities of their adoption in the study sample. test the level of correlation between the main study variables and their sub-dimensions statistically at the level of the study community sample . testing the level of the influential relationship of employing resource planning systems in the quality of performance of project management statistically at the level of the study community sample. fourth: the study model the study model is an intellectual construction of a set of facts that provide a simplified and concise virtual representation of the phenomenon under study represented by the main variables (resource planning systems, quality of performance for project management), the measurements of which were determined in the light of the study, the study model includes the following variables: -1 independent variable (variable): it is represented by resource planning systems and their dimensions represented by(human resources, production, supply chain management, customer relationship management, resource engineering and operations (. -2 the dependent variable is represented by the quality of project management performance and its dimensions (planning, feasibility study, implementation, quality). as shown in the following figure (2) figure (2) / hypothetical study model source: prepared by the researcher x resource planning systems hr quality performance of project management y planning supply chain management feasibility study relationship correlation production influence relationship implementation customer relationship management resource and process engineering quality american journal of business management, economics and banking volume 20 january, 2024 p a g e | 230 www.americanjournal.org fifth: study hypotheses the study hypotheses were formulated according to the problem of the study, its objectives and its hypothesis scheme, namely : the first main hypothesis :there is no statistically significant correlation between the application of the resource planning systems method and improving the quality of project management performance, and the following sub-hypotheses emerged from it: • there is no significant correlation between human resources and the quality of performance of project management . • there is no significant correlation between output and the quality of performance of project management . • there is no significant correlation between supply management and the quality of performance of project management . • there is no significant correlation between crm and the quality of performance of project management . • there is no significant correlation between resource and process engineering and the quality of performance of project management . the second main hypothesis: no statistically significant impact relationship between the application of the resource planning systems method and improving the quality of project management performance, and the following sub-hypotheses emerged from it: • there is no significant impact relationship betweenhuman resources and the quality of performance of project management . • there is no significant impact relationship betweenoutput and the quality of performance of project management . • there is no significant impact relationship betweenchain management and the quality of performance of project management . • there is no significant impact crm and the quality of performance of project management . • there is no significant impact relationship between engineering and the quality of performance of project management . the third main hypothesis: there is no statistically significant relationship between the studied sample and improving the quality of performance of project management ( gender, age, career level, scientific qualification, years of service) sixth: study limits 1-spatial boundaries: the spatial boundaries of the study are represented by a group of ministries and departments of state projects . the study sample was selected for the purpose of conducting the field side. this sample was chosen because of its accumulated experience in project management and distinguished administrators and engineers in this field. 2-human limits: the human limits of the study are represented by the studied sample, which was selected (targeted) and will consist of project managers, engineers and administrators specialized in the field of project management and implementation in the study sample . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 231 www.americanjournal.org seventh: information and data collection tools 1-theoretical aspect: researcher will rely on several methods in the data collection tools, including books, refereed journals, master's theses and doctoral theses related to research variables to enrich and build the intellectual framework of research as well as benefit from the vocabulary of methodology and previous studies. 2-practical aspect: researcher will rely on the statistical aspect through the questionnaire as the main tool and the five-point likert scale to obtain the necessary data to conduct statistical analyses and stand on their results in order to point to the conclusions inspired by them as well as recommendations related to them. eighth: study curriculum 1-the descriptive-analytical approach will be adopted in the study because it is the best approach in exploring what the researcher aims at in his thesis. 2-practical side the appropriate statistical programs test to measure the truthfulness and constancy of the study measures, weighted arithmetic mean, standard deviation and coefficient of standard difference to describe and diagnose the answers of the study sample, perform correlation analysis (pearson )regression analysis using structural equation modeling and trajectory analysis to test the study hypotheses . the study was divided into five chapters and includes several investigations, as follows: the deals with the methodology of the study and some previous studies and includes two researches, the first one deals with the methodology of the study and the second one deals with some previous studies. the second chapter deals with the theoretical side of the study and includes four discussions devoted to the first to resource management systems, the second to the methods of implementing the concept of resource planning systems, the third to the quality of performance and the fourth to project management. the third chapter deals with the field side of the study and includes three researches, the first of which is devoted to examining the credibility and stability of the study measures, the second is the statistical description of the responses of the study sample ,and the third is the analysis and testing of correlation and influence relationships between the study variables. the fourth chapter contains conclusions and recommendations. previous studies 1study of al-kasasbeh, mohammed abdul mahdi (2005) entitled "the impact of the effectiveness of the organization's resource planning system in the psychological empowerment and organizational commitment of workers: a field study on the arab potash company" master thesis, college of business / middle east university. this study aimed to identify the impact of the effectiveness of the resource planning system (erp) in the psychological empowerment and organizational commitment of workers through a practical field study in the arab potash company, as it dealt with a very important topic to deal with the changing and unstable work environment through the effectiveness of the organization's resource planning system at a time when the failure of many organization resource planning system american journal of business management, economics and banking volume 20 january, 2024 p a g e | 232 www.americanjournal.org 2-study t. (teodor) beleţ , a. a. (anca) purcărea (2017) titled : " the evolution of enterprise resource planning systems " the management of organizations needs effective information systems to improve competitiveness by reducing cost and improving logistics, as it is universally agreed by large, small and medium-sized companies (sme) that the ability to provide the right information at the right time brings enormous rewards to organizations in a global competitive world of complex business practices, and enterprise resource planning (erp) can be defined as a framework for organizing, defining and standardizing business processes necessary for effective organization planning and control so that the organization can use its internal knowledge to gain an external advantage, and in this paper presents the growth and success of adopting and developing organizations throughout history and closely following the development of enterprise resource planning (erp) systems and the amazing developments in the field of computer hardware and software systems, there is still an endless process in the erp market of re-engineering, development, introducing new products and solutions, integrations continue, the main players continue to build their products and the next stage of erp systems will be embedded products. 3-study prof. dr. tapas kumar , pvl narayana rao (2017) titled : "strategic erp [enterprise resource planning] system planning in alignment with business planning for its improvements" the enterprise resource planning (erp) system is one of the most widespread business management systems in the modern and developing world of management, provided that it takes advantage of real-time capabilities and full business communication in large organizations, however, not all applications of enterprise resource planning (erp) systems have succeeded because the implementation of enterprise resource planning touches entire organizations such as the process, people, culture, etc., there are a number of experiences that companies may encounter in the application of erp (erp) such as the business approach is important for all organizations, as almost 500 companies are implementing erp (erp) systems to improve the implementation of their business strategy and improve merging with information technology (it) strategy. this study monitored the planned alignment of business and it and proceeded to determine whether the implementation of erp can drive the re-engineering of business processes and the strategic alignment of business and it. concepts and terms of study first: the concept of resource planning systems erp systems (erp) is a comprehensive integrated system that governs all aspects of business and gives you the automation and integration of your business for basic operations such as receiving customer orders, planning operations, maintaining inventory records and business data , and the use of erp systems (erp )provides user transparency in the entire business development through which all departments can view documented information to ensure that the correct actions occur and this enables the erp system (erp) from acting as the central core of the overall workflow and data with advances in technology and customer requirements erp designers have been forced to deal with new advances and therefore new erp system designs have been made to satisfy companies and customers by developing new erp business models .today( erp a wide range of functions american journal of business management, economics and banking volume 20 january, 2024 p a g e | 233 www.americanjournal.org within themselves and is becoming a popular solution in a business organization, moreover one of the biggest challenges facing( erp is to maintain their speed with the manufacturing part that was rapidly moving from product focus to customer focus,this demand has encouraged most enterprise resource planning (erp) vendors to add functionality and modules to their platforms.( subhi r & others:2020, p1885). second: the importance of resource planning systems: erp systems are of great importance for business and working environments today, while looking at various organizations and the processes associated with them it can be said that enterprises are not separate entities at work, since each department works independently of the other. management is integrative processes in which all departments work in harmony with each other to achieve the overall goals and objectives of organizations. stated that among the most significant advantages of using erp in organizations are the integration of various tasks and functions and assisting senior management in decision-making processes by providing various alternatives and demonstrating the associated negative and positive effects (avram, 2010: p196-208). third: definition of resource planning systems: for each term, concept or system, there are many theoretical definitions touched upon by the researchers, and they focused in their definitions on the most basic ideas of this term and the results that can be achieved if any new system or concept is adopted that affects the institution, so the researcher will collect some definitions from scientifically approved references so that the reader can get an adequate and comprehensive idea about the resource planning systemerp). ultra is defined as "enterprise resource planning (erp) as enterprise system, integrated management system or integrated enterprise system" (ultra, r ,2012: p48). suarez also defined it as"an integrated business management software due to its functional modules in logistics, finance, hr confiscation, sales, etc." (suarez, c ,2016: p56). others have said that erp is "an integrated information system that can be used to manage all resources, data and functions of a company from shared data stores" (kallunki, j ,2011 : p21). fourth: the dimensions of resource planning systems 1-chain management: chain management is defined as "the formation and operation of efficient and effective production and logistics networks and management within and between organizations for supply, conversion and delivery operations "(brandenburg, m. and rebs, t, 20 15 : p213) 2-human resources :there is an increasing interest to research thoroughly about the importance of human resources practice in supporting the ability of organizations to innovate, as the role of human resources in the strategic management of the institution has become more important, as these practices can provide tools for change, innovation and support strategic and influential decision-making in institutions and organizations. zhou, y, & others 2020: p. 20-43)) 3-resource and process engineering (bpr) : the redesign of business processes involves a fundamental rethinking and radical redesign of business processes to achieve significant american journal of business management, economics and banking volume 20 january, 2024 p a g e | 234 www.americanjournal.org improvements in important performance metrics (cost, quality, service, speed). effective redesign of organizational processes can reduce cost, efforts and time, as well as speed of service and improve quality, however, this requires a management team to conduct a business restructuring to generate the desired alternatives and results, taking into account the human resources and their potential impact internally and externally. ( bayomy, n et al, 2021: p.e505) 4-customer relationship management (crm) :customer relationship management needs to be handled by the organization's management from a strategic point of view rather than just a technical point of view, the requirements, capabilities and practices of customer relationship management should be reviewed and its impact on the behavior of individuals and their performance should be understood, while ensuring that new technological applications fit the organizational context and the strategies of the foundation((cristina ledro et al, 2022: p. 56 . 5-production: production is the process of converting raw resources into goods with the benefit of satisfying the desires of consumers, where it was defined as "it is the set of processes and activities through which goods and services are produced, and this concept exists in industrial enterprises as it exists in service institutions, production, performance and output are the elements of productive effort "(mason abu safiya 2017: p. 3 2) fifth: the concept of quality performance for project management the outstanding performance of workers is the basis for achieving the highest levels of quality, increasing profits and competitiveness, performance refers to the approved organizational procedures and mechanisms and their effects on performance in light of them, in addition, this measure relates directly to the organizational structure and not to the expected results of a social and economic nature, and research theory has been applied to theories for understanding how entrepreneurs benefit from and organize their projects. ( zonnenshain,2020, p614-626) sixth: the importance of quality performance for project management the quality of performance has become one of the important and necessary elements in light of the intense global competition, and it has become necessary to focus on all aspects to withstand this competition, whether it is related to product quality, commodity price, cost reduction, good time management, providing safety in the product and in the work environment, increasing productivity, improving the level of operation performance and other important achieving and reaching them has become easy by adopting and applying quality management methods,and the success of project financing depends on different environments and different signals, as these signals have a great role in knowing the quality of the project and performance, which deserves funding, and there must be experience in the establishment of the project, which leads to the success or failure of the project. ( skirnevskiy ,2017 , p209-236) sixth: performance quality dimensions of project management 1-planning: planning is one of the important elements that help organizations to succeed and excel, as it is said about it "it is a set of organizational activities and processes such as setting visions, goals and objectives and allocating resources to develop high performance indicators and achieve excellence for the organization". project planning involves the preparation and creation of a set of plans (financial resources, quality, risk, communications, acceptance, processing, and contracting with processors), all of which are working guides for the planning review stage .and from the point of viewkotlerdescribed planning as "a special administrative american journal of business management, economics and banking volume 20 january, 2024 p a g e | 235 www.americanjournal.org process of establishing and maintaining the relationship between the organization's goals and aspirations and rearranging activities in the right way that achieves growth and profits in the future. the development of a plan is the basic step that is based on the project, where a set of tasks, activities and required resources are listed, and the plan requires a description of the main steps necessary to complete the project and a schedule of task activities. ( abdelaal, 2021,p23-45) 2-feasibility study: the feasibility study is " analysis, calculation and evaluation of the economic feasibility of the implementation of the proposed project and the development of the project and the study of the economic and information system, but on the basis of a comparative assessment of costs, results and efficiency of use the period of recovery of investments as well as the feasibility study is necessary for each investor business".(hellen a. seshie, abena d. oduro, 2016, p107-114) 3quality: quality is defined as the ability to satisfy the customer's needs at the time of purchase and during use at the best cost, and works to reduce losses and increase competitiveness, he also pointed out that the quality of the project is represented by readiness and planning and thus positively affects the opportunity to invest and earn money from investorssoublière, 2020, p472) ) 4-implementation: implementation is the completion of the thing and extracting it from the ideas, the proposed conception and planning to the physical and tangible reality is the completion of the tasks of the plans drawn up for the project and working out to achieve the project goal. this is done by the work team and the project implementation manager, which is a practical realization of the project plan directly through work personnel under the supervision of the project manager. it is defined as"a method of implementing or accomplishing certain tasks in the project, such as execution according to time or execution according to the completion rate, and the method of implementation is determined according to the specifics of each type of process in the project". (edmondson, 2019, p13) the field side the theoretical study of the role of resource planning systems (erp)in improving the quality of performance of project management which the projects department was selected for both baghdad governorate, baghdad municipality, karbala governorate, the planning and follow-up directorate of karbala governorate and the planning department of karbala police command as a sample for the application of the field study the first part includes the initial data on the individuals of the study sample according to the demographic variables of the study: (gender, age group, career level, educational qualification, years of service). https://www.scirp.org/html/2-2330259_104629.htm#ref08 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 236 www.americanjournal.org the second part includes the study paragraphs that were used to identify the role of resource planning systems, as it included three main axes (human resources, production, resource chain management, customer relationship management, resource engineering and operations). it consists of (42) are answered according to the five-point lecart scale. strongly agree agree neutral disagree strongly disagree for the third part: it includes the paragraphs of the study that were used to identify the level of performance quality of project management ,as it included the following axes (project planning, feasibility study, project implementation, quality) consisting of (37 ) paragraphs to be answered according to the five-point licart scale referred to above. the following table shows the distribution of the questionnaire paragraphs: table no. :)1distribution of questionnaire paragraphs) axes of the study tool dimensions number of paragraphs the first axis of the independent variable 1 human resources 11 the second axis of the independent variable 2 production 9 the third axis of the independent variable 3 supply chain management 8 fourth axis independent variable 4 customer relationship management 7 fifth axis independent variable 5 resource and process engineering 7 the sixth axis of the dependent variator6 project planning 10 the seventh axis of the dependent variator7 feasibility study 9 the eighth axis of the dependent variator8 project implementation 10 the ninth axis of the dependent variable 9 quality 8 source: researcher preparation test the honesty and stability of the study tool ) reliability). table no. )2reliability statistics alpha cronbach coefficient) n of item cronbach's alpha honesty= square root of constancy 218 0.941 0.970 source: prepared by the researcher american journal of business management, economics and banking volume 20 january, 2024 p a g e | 237 www.americanjournal.org the cronbach alpha test was performed for each of the resolution axes and the result was also high and ranged between (0.852) and (0.746) this indicates the stability of each of the axes of the study and the high ability of the axes tool to measure what each axis was designed for statistical analysis of the study hypotheses the first main hypothesis: there is no statistically significant correlation between the application of the method of resource planning systems and improving the quality of project management performance. the following sub-hypotheses branch from this main hypothesis: -1 no significant correlation between human resources and the quality of performance of project management . 2-no significant correlation between production and the quality of performance of project management . 3-no significant correlation between chain management and the quality of performance of project management . 4-no significant correlation between customer relationship management and the quality of performance of project management 5-no significant correlation between engineering and the quality of performance of project management . table )3)the coefficient of correlation between the quality of performance for the performance of projects with each dimension of (erp .) variants pearson correlation sig. (1-tailed) mean std.deviation human resources .434**0 .0000 3.6497 0.51770 production .499**0 .0000 3.6677 0.45105 supply chain management .542**0 .0000 3.6703 0.46232 customer relationship management .379**0 .0000 3.5465 0.50590 resource and process engineering .426**0 .0000 3.6186 0.47866 resource planning systems (erp) .573**0 .0000 3.6358 0.38428 source: preparation of the researcher based on the results of statistical analysis (spss) from the above it can be deduced from the following sub-hypotheses: 1-there is a significant correlation between human resources and the quality of performance of project management . 2-there is a correlation between production and the quality of performance of project management . 3-there is a correlation between chain management and the quality of performance of project management . 4-there is a correlation between customer relationship management and the quality of performance of project management . 5-there is a correlation between resource engineering, processes and the quality of performance of project management american journal of business management, economics and banking volume 20 january, 2024 p a g e | 238 www.americanjournal.org in conclusion, based on the statistical results, which appeared in table no (39) the correlation coefficient between resource planning systems (erp )is equal .(573* *0) , and that the value of the statistical significance is .(000) , which is less than (0.05), then it will reject the hypothesis of nothingness and accept the alternative hypothesis to the first main hypothesis (there is a significant between the application of the method of resource systems ( )and improving the quality of project management performance .) the second main hypothesis: there is no significant impact relationship between the application of the method of resource planning systems and improving the quality of project management performance. the following sub-hypotheses branch from this main hypothesis: 1-no impact between human resources and the quality of performance of project management . 2-no impact between production and quality performance of project management . 3-no impact between chain management and quality performance of project management . 4no impact relationship crm and quality performance of project management 5-no impact between resource and process engineering and the quality of performance of project management . table )4)test results (t ,)correlations (r )and (r square )to identify the impact of the dimensions(erp )and its dimensionsonquality of performance, not the project circuit . variants t level of significance(sig ) r r square human resources 7.071 .0000 .4340 .1880 production 8.454 .0000 .4990 .2490 supply chain management 9.468 .0000 .5420 .2930 customer relationship management 6.013 .0000 .3790 .1430 resource and process engineering 6.913 .0000 .4260 .1810 erp 10.285 .0000 .5730 .3290 source: preparation of the researcher based on the results of statistical analysis (spss) by the above we reject the null sub-hypotheses and accept the following alternative hypotheses: 1there is a statistically significant impact relationship between human resources and the quality of performance for project management . 2there is a statistically significant impact relationship between production and the quality of performance of project management 3there is a impact between supply management and the quality of performance of project management. -4 there is a impact betweencustomer relationship management and the quality of performance for project management. 5-there is a impact betweenengineering of resources and processes and the quality of performance for project management . in conclusion, based on the statistical results, which appeared in table no (40) the coefficient of influence between resource planning systems (erp)equal to (.5730), which indicates the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 239 www.americanjournal.org existence of an average direct relationship, the amount of impact of resource planning systems on the level of quality performance of project management)(amounted (32.9 ,)% and this is a good percentage, as a result, it turns out that resource planning systems (erp )affect the level of quality performance of project management directly and rather well. returning to the hypothesis related to the impact of resource planning systems (erp )on the level of quality performance of project management, we can find that the value of (t )has reached (10.285), which is much more than (2) and that the value of (sig )has reached (0.000) i.e. smaller than (0.05) and thus rejects the hypothesis of nothingness and accepts the alternative hypothesis that(there is a impact relationshipbetween the application of the method of resource planning systems (erp )and improving the quality of project management performance .) the second main hypothesis (demographic variables): there is no statistically significant correlation between the studied sample and the improvement of the quality of performance of project management ( gender, age, career level, educational qualification, years of service). table (5) correlations between the quality of performance of project management and demographic variables. variants r r square gender .0750 .0060 age: .0020 .0000 career level .0930 .0090 academic qualification .0300 .0010 years of service .0570 .0030 source: preparation of the researcher based on the results of statistical analysis (spss) from the above, the following demographic hypothesis can be deduced there are significant differences between the studied sample and the quality of performance of project management according to different demographic variables (gender, age, career level, educational qualification, years of service). multiple linear regressionpredict the future(multiple regression analysis.) the multiple linear regression test is related to predicting the future (unknown) based on data collected in the past (known), it analyzes one of the variables (dependent variable) influenced by another factor or more of the factor (independent variables), however, the regression analysis is influenced by some variables to a greater extent than other variables, so the weighting weight of variables should be taken into account when prediction, rejects the null hypothesis (nihilism) and accepts the alternative hypothesis if(t)high or more than)2(significance level(sig)less than .)0.05( american journal of business management, economics and banking volume 20 january, 2024 p a g e | 240 www.americanjournal.org table (5) the value of ((b1)and(b0 . model unstandardized coefficients standardized coefficients (t) sig. value r value r2 value f f significance statistics b std. error beta (constant) 2.062 0.154 13.430 0.000 0.605 0.366 24.514 0.000 human resources 0.012 0.045 0.023 0.272 0.786 production 0.152 0.049 0.243 3.108 0.002 supply chain management 0.185 0.048 0.302 3.889 0.000 customer relationship management 0.047 0.040 0.085 1.188 0.236 resource and process engineering 0.082 0.040 0.139 2.032 0.043 source: preparation of the researcher based on the results of statistical analysis (spss) table showsthe impact of the independent variables represented by (human resources , production, supply chain management, customer relationship management, resource engineering and operations) on the quality of performance of project management, where the value(f) (24.514) , and in statistical (0.000) . also, the value(r) , which represents the total correlation model (0.605) , and the value )( , which represents the strength of the impact of independent variables onquality of performance of project management (0.366). the data in table (55) that the effect of each of the independent variables was different from the other ,the most prominent of which was for the supply chain management variable, where the value(t) (3.889) the statistical (0.000) value(beta)which expresses the effect of the independent variable on the dependent variable (0.302) indicating the ratio of the impact of supply chain management on the dependent variable (quality of performance of project management), i.e., the more the independent variable increases by one unit, the more the dependent variable increases by beta. then came the effect of the output variable, where the value(t) (3.108) , and statistically (0.002) , andthevalue(beta) (0.152) , this shows the ratio of a significant impact of production onquality performance of project management. then came the impact of the variable of resource engineering and processes, where the value(t) (2.032), and statistically (0.043) , andthevalue(beta) (0.082) , and this indicates the ratio of the impact of average production onquality of performance of project management, and this is consistent with the findings of the study and the proof of its hypotheses. as for the human resources variable and the customer relationship management variable, the ratio of their impact on the quality of performance for project management was not statistically significant at the indicative level (0.05). thus , there is a significant impact relationship between the application of the method of resource planning systems (المواردp) and improving the quality of project management performance . conclusions of the study 1through previous studies, it has been shown that there is an increase in interest from government institutions for projects and the introduction of new systems that are more effective in raising the level of performance of departments as a system (erp ,)researchers american journal of business management, economics and banking volume 20 january, 2024 p a g e | 241 www.americanjournal.org and writers specialized in project management have paid great attention to providing everything that contributes to enhancing the quality of performance of project management, which will be a major reason for the success of projects. 2behavior of senior management is reflected on improving the level of performance quality in the course of the project planning and organizational processes and upgrading the level of executive performance of project managers. 3there is a significant correlation between the application of the method of resource planning systems (erp )and improving the quality of project management performance. 4there is a significant impact relationship between the application of the method of resource planning systems (erp )and improving the quality of project management performance. 5there are significant differences and statistically significant impact between the study community and the quality of performance of project management due to demographic variables (gender, age, career level, academic qualification, years of service). study recommendations 1-work on attracting specialized cadres by introducing new and effective systems in project management that help project managers make the right administrative decisions. 2-holding periodic meetings between the executive project managers to exchange experiences and focus on the positive points that help the success of the project and any factor or variable that may be the effective reason for the success of administrative decisions, and identify weaknesses that managers may be exposed to during the project process and that may hinder the progress of the project. 3-using statistical methods in government institutions that manage projects in order to analyze the causes of problems that affect the quality of their performance and prevent their occurrence in the future. 4-need to adopt the dimensions of resource planning systems (erp)in the institutions concerned with the implementation of projects in all state institutions, as they lead to raising the level of quality performance of project management, which in turn leads to the success of projects to very high levels. refernces: 1-subhi r. m. zeebaree, baraa w salim & others (2020) " enterprise resource planning systems and challenges" technology reports of kansai university, volume 62, number 4, p1885. 2-avram, c. d. (2010). " erp inside large organizations informatics economica" volume 14, number 4, p 196-208 3-oltra, r. (2012). "integrated business management systems, historical evolution and future trends" (1st ed.). valencia, spain: polytechnic university of valencia. 4-suarez, c. (2016). "practical guide software business management". edisa. 5-kallunki, j.-p. laitinen, e.k. silvola. h , (2011) "h. impact of enterprise resource planning systems on management control systems and firm performance". int. j. account. inf. syst. 2011, p21. https://www.researchgate.net/profile/subhi-zeebaree?_sg%5b0%5d=hwyzarrbl7gb-vtap3z6zpp8gc1enpjsmc_tin4nqo5ovbglwmedqmgqzcvjicqd9582f6q.kb3qopl-tjpeivjw5s2i3uzsybzk_mozclj865xbctfebp6-bg4tgrdnlbor8yyfdyggrrclypspq4vsw6tshq&_sg%5b1%5d=yg_hcxkjzj1czblq0hx3bca0ouulgr5hmt7xdozjmohildnpr5j57zs10oqhbsr7lckqkme.wp8v4pjs5pucdyypnvfmgf83f6tufftjoi5ybh2lpwmz9dkjyzogg7fd2zhzhcl7wwqrljanmufjdvc4q5y0og https://www.researchgate.net/profile/baraa-salim-2?_sg%5b0%5d=hwyzarrbl7gb-vtap3z6zpp8gc1enpjsmc_tin4nqo5ovbglwmedqmgqzcvjicqd9582f6q.kb3qopl-tjpeivjw5s2i3uzsybzk_mozclj865xbctfebp6-bg4tgrdnlbor8yyfdyggrrclypspq4vsw6tshq&_sg%5b1%5d=yg_hcxkjzj1czblq0hx3bca0ouulgr5hmt7xdozjmohildnpr5j57zs10oqhbsr7lckqkme.wp8v4pjs5pucdyypnvfmgf83f6tufftjoi5ybh2lpwmz9dkjyzogg7fd2zhzhcl7wwqrljanmufjdvc4q5y0og american journal of business management, economics and banking volume 20 january, 2024 p a g e | 242 www.americanjournal.org 6-brandenburg, m. and rebs, t. (2015), “sustainable supply chain management: a modeling perspective”, annals of operations research, vol. 229 no. 1, pp. 213. 7-zhou, y., liu, g., chang, x. and wang, l. (2020), “the impact of hrm digitalization on firm performance: investigating three-way interactions”, asia pacific journal of human resources, vol. 59 no. 1, pp. 20-43 8-bayomy, n.a., khedr, a.e. and abd-elmegid, l.a. (2021), “adaptive model to support business process re-engineering”, peer j computer science, vol. 7, 505. 9-cristina ledro, anna nosella and andrea vinelli. (2022) " artificial intelligence in customer relationship management: literature review and future research directions" journal of business & industrial marketing, vol. 37 no. 13, p. 56. 10-zonnenshain, a.; kenett,( 2020) r.s. quality 4.0—the challenging future of quality engineering. qual. eng., 32, 614–626 11-skirnevskiy, v., bendig, d., & brettel, m. (2017). the influence of internal social capital on serial creators’ success in crowdfunding. entrepreneurship theory and practice, 41(2), 209–236. 12-abdelaal, a, shobaki m, j, abu-naser s, & el talla, s. (2021) the impact of strategic planning for increasing the level of performance in egyptian ceramic companies. international journal of academic accounting, finance & management research .vol. 5 issue 12, december 2021, pages: 23-45. 13-edmondson, a. (2019). the role of psychological safety. leader to leader, p13. 14-_hellen a. seshie-nasser, abena d.oduro,(2016), "delayed primary school enrolment among boys and girls in ghana" , international journal of educational development, vol 49,p107-114 15--sawai, khalid mohammed (2011)"introduction to data analysis usingspss" modern world of books, first edition jordan_ amman,195. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 73 www.americanjournal.org exchange rates and their impact on economic growth in iraq for the period 2004 – 2022 doctor. abdullah muhammad rashid al-ramli samarra university abdullah.m.r@uosamarra.edu.iq assistant lecturer: marwa abd jawir shamekh al-dulaimi samarra university marwa.abd.jw@uosamarra.edu.iq prof. dr. nazhan muhammad sahu hamdan samarra university alsahao.n@uosamarra.edu.iq a b s t r a c t k e y w o r d s the research aims to clarify the effects that exchange rate fluctuations can have on economic growth in iraq. one of the most prominent results that the research reached is that exchange rates explain 90% of the changes occurring in the gross domestic product, and the results of the bound test showed the co-integration between the variables of the study. if the calculated ( f ) is ( 6.79058 and is greater than the tabulated value, as it reached (4.6 6 ), at a significance level (5%), that is, the existence of a cointegration relationship between some variables , it showed results impact in the term the short one that fluctuations prices exchange ,as a variable independent may be i passed in proof its effect and the positive and moral in indicator economic growth (gdp) and at level moral less from (0.05), i.e when the increase in prices exchange by 100% van economic growth (gdp) rises by an amount 19 % , it showed results impact in the term the long if that fluctuations prices exchange ,as a variable independent did not succeed in proof its effect in indicator economic growth (gdp) because the probability exceeds the 5% barrier, the research is recommended to be important activation role the bank central in a way larger from okay monitoring the changes in prices exchange and strive the permanent to discount price cashing dinar opposite currencies the other and interest by factors influential in price exchange because its effect reflected in a way big on prices exchange. exchange rate, gross domestic product. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 74 www.americanjournal.org introduction many changes occurred in the iraqi economy after 2003, the most important of which was the start of the process of rehabilitating the iraqi economy. there are several factors that contributed to the improvement and stability of the exchange rate, including the issuance of central bank law no. 56 of 2004, and what it allowed for achieving complete independence for the central bank in formulating and implementing its policy. monetary policy and its resort to adopting indirect means of monetary policy, the most prominent of which is the central bank organizing an auction for foreign currency with the aim of achieving stability and improvement in the exchange rate of the iraqi dinar against the dollar, and thus there has become a clearer policy for the central bank that has allowed it to enjoy new independence to stabilize the exchange rate of the iraqi dinar and follow up its movements were made within certain limits through foreign currency auctions that were approved since 2003. this auction contributed to achieving the objectives required of it to a good extent as it was one of the indirect means that the bank adopted in formulating and implementing its new monetary policy. the iraqi budget also witnessed a continuous financial surplus after 2003 . research problem the essence of the problem addressed by the research lies in the impact of exchange rate fluctuations on economic growth , and the main problem of the research revolves around the positive repercussions of the exchange rate on economic growth . research importance the importance of the research is highlighted by the contribution of the exchange rate through its contribution to achieving macroeconomic goals, which are represented by internal and external economic balance, as the internal balance is represented by the stability of local prices, in addition to achieving a level of economic growth, while the external balance is represented by the balance of payments balance. which shows the country's various trade exchanges . search goal : the research aims to achieve the following : 1explaining the effects that exchange rate fluctuations can have on economic growth 2identify the relationship between the exchange rate and economic growth 3 . search structure : to achieve the research objectives, the research was divided into three sections. the first section dealt with the theoretical framework of the exchange rate and economic growth . the second section included an analysis of the reality of exchange rate indicators and economic growth (gross domestic product) in iraq for the period (2004 2022 ). as for the third section touched upon the impact of exchange rate fluctuations on economic growth . research hypothesis the research is based on the hypothesis that exchange rate fluctuations have positive repercussions on economic growth american journal of business management, economics and banking volume 20 january, 2024 p a g e | 75 www.americanjournal.org spatial and temporal boundaries: spatial boundaries were represented in iraq, and the temporal boundaries were represented by the period 2004-2022 . research methodology : and quantitative analytical approach in analyzing the exchange rate and economic growth (gross domestic product) and determining the relationship between them . the first topic the theoretical framework of the exchange rate and economic growth . the first requirement : the theoretical framework of the exchange rate. 1the concept of exchange rate there is more than one concept of the exchange rate, all of which agree on the elements and aspects that distinguish it. we will discuss some of the concepts mentioned that highlight the most important aspects of the exchange rate or give it a comprehensive concept, including the following: the exchange rate is known as the ratio on the basis of which a number of local monetary units are exchanged for foreign monetary units (issa, 2016, 247). it is also known as the number of units of foreign currency that are exchanged for one unit. one of the national currency and vice versa. it is defined as the price of the foreign currency expressed in local national money. it is defined as the price that is determined by the force of supply and demand in the free market at which the currency can be bought and sold. it is defined as a set of units of a particular currency that must be paid in exchange for obtaining it. on one unit of another currency (al-baldawi, 2022, 11), or it is the price of a country’s currency expressed in other countries’ currencies (al-zoubi, 2020, 19.) several characteristics of the exchange rate can be deduced, as follows (al-baldawi, 2022, 11) athe process of exchanging foreign currency for the national currency and vice versa . bthe exchange process takes place according to a certain price . cthe swap process takes place in the foreign exchange market . dthe exchange rate binds the economies of the open world together . ean increase in the exchange rate leads to a reduction in economic growth by reducing exports, which leads to a decline in production and employment of the workforce, and vice versa with a decrease in the exchange rate . 2the importance of the exchange rate . the importance of the exchange rate lies in the way in which the exchange rate is determined in light of future changes by knowing the reasons for its change, whether in the short or long term. as is known, the exchange rate seeks to achieve macroeconomic goals by achieving internal and external balance, so internal balance is the path to stability in prices and wages and full employment. as for the external balance, it is represented by the balance of the trade balance in the balance between exports and imports. that is, the exchange rate links the prices of goods in the local economy to their prices in the global market, and thus it measures the ability to compete. the importance of the exchange rate also appears in achieving stability in the exchange rate of a currency against other currencies (awad, 2022, 217). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 76 www.americanjournal.org 3 functions of the exchange rate : the exchange rate has several functions, the most important of which are summarized as follows: ( hussein, 2008, 21). astandard function: the exchange rate is a tool for linking local prices to international prices. the exchange rate is used as a measure to compare the prices of local commodities and the prices of the same commodity in the global market, which gives producers a standard idea of the general level of prices. bdevelopment function: the exchange rate is used to develop exports of a particular commodity, as reducing the exchange rate of the national currency leads to an increase in exports that is, the relationship will be inverse between the exchange rate and exports , and by raising the exchange rate of the national currency, imports of foreign goods will increase, meaning the relationship will be direct between the exchange rate and imports. we conclude from this that the growth of foreign trade requires stability of the exchange rate . cthe distributive function: it results from its connection with foreign trade, which redistributes national income and global national wealth among the countries of the world. the exchange rate links the local and global economies, as it represents a link between local prices and international prices through the three markets (the labor market, the market for goods and services). , financial asset market(. 4forms of exchange rate. the exchange rate acquires many forms and forms , each of which has its own meaning and, consequently, its own use. based on this, the forms of exchange can be determined as follows : anominal exchange rate the nominal exchange rate is defined as the price of a foreign currency in terms of a local currency, and this definition can be reflected in calculating the local currency in terms of foreign currency units. therefore, an increase in the price of the local currency in relation to the foreign currency is considered an improvement in the nominal exchange rate and vice versa (muhammad, 2017: 505). it can also be defined as a measure of the value of a particular country’s currency that can be exchanged for another country’s currency. thus, the nominal exchange rate is determined as the price of a currency under the influence of the force of supply and demand for it at a specific moment in time in the foreign exchange rate market. the nominal exchange rate is also divided into two types: the first type that is used in current transactions is the official exchange rate, and the second type that is used in parallel markets is the parallel exchange rate ( al-mayahi and shindi, 2022: 33-34). a definition can be given for each of the official and parallel prices as follows: -the official exchange rate (window rate): it is known as the central price that evaluates government transactions and all imports of the state’s public treasury (shendi, 2006: 53). it is also known as the price specified by the central bank that is traded in the currency selling window, which is one of the methods. direct and influential measures that can be used to intervene in the exchange market in order to maintain the stability of exchange rates and the general level of prices (reda and jawad, 2022: 218( -parallel exchange rate: it is a price that is determined on a daily basis and based on market strength. it is also used by the private sector. the range of the parallel exchange rate is wide locally and american journal of business management, economics and banking volume 20 january, 2024 p a g e | 77 www.americanjournal.org externally. the parallel exchange rate is located between two types of exchange rates: the equilibrium exchange rate and the nominal exchange rate (al-mashhadani). and abdullah, 2020: 417) . bthe real exchange rate it is the price that gives the local currency its real value, as it expresses the units of foreign goods needed to purchase one unit of local goods (salma, 2014, 9). 5 factors affecting exchange rates : there are a group of factors affecting the determination of the exchange rate, the most important of which are as follows: (issa, 2016, 250 (. amoney supply: it is one of the important factors that affect the exchange rate, as the sharp increase in the local money supply with the aim of financing the growing government deficit leads to an increase in the amount of money in circulation and thus an increase in the value of goods and services, which leads to an increase in the level of local prices, which makes the country’s goods less competitive ability, thus increasing the quantity of imports and decreasing the quantity of exports, which is reflected negatively on the trade balance, and then the demand for foreign currencies increases, which is negatively reflected in a decrease in demand for the local currency, and thus a decrease in the exchange rate of the local currency against other currencies . bbalance of payments: the balance of payments is the window through which the national economy views the global economy and vice versa, and it is one of the factors affecting the exchange rate. the effect of the balance of payments on the exchange rate is evident through the states of surplus and deficit in the trade balance. when it is in a state of surplus, the demand for the local currency is greater than the demand for foreign currency, which leads to an increase in the value of the local currency, so the relationship is direct. however, if the balance is in a deficit, the demand for foreign currency is greater than the demand for the local currency, which means that the value of the currency decreases when a persistent deficit in the balance of payments causes an increase in the supply of the local currency on the global market and, over time, leads to a decrease in the value of the local currency. (awad, 2022, 218) . cinterest rate changes: interest rates affect exchange rates by attracting foreign capital, because the capital prepared for lending is sensitive to changes that occur in exchange rates. interest, as it is known that the interest rate rises in capital-short countries and decreases in capital-intensive countries, and on this basis, the capital prepared for lending will move from capital-short countries because interest rates in these countries are high, as the money supply of a country decreases. which leads to an increase in the interest rate, and this means the transfer of capital from the second country with a low interest rate to the first country with a high interest rate and an increase in demand for the first country’s currency compared to the supply of the same currency , and therefore any increase that occurs in real interest rates clearly contributes. in the transfer of capital from abroad to inside, which leads to an increase in the exchange rate of the local currency. . (alzoubi, 2020, 21). dinflation rate: inflation is an economic phenomenon that is not desired by most economies, as the rise in the general level of prices in national economies leads to a decrease in the value of the national currency against foreign currencies, and thus the exchange rate is affected, which leads to an increase in the number of units of the national currency that are exchanged for one unit. one american journal of business management, economics and banking volume 20 january, 2024 p a g e | 78 www.americanjournal.org of its corresponding foreign currency, so the rise in the general level of local prices compared to international prices works to increase imports, and thus the demand for foreign currency increases, which works to reduce exports, as well as a decrease in the supply of foreign exchange, which pushes the exchange rate to rise, and consequently therefore, imports increase and exports decrease (the state’s trade balance deficit), and from this it can be considered that the general level of prices is one of the most important factors influencing the determination of the exchange rate and its fluctuations (al-zoubi, 2020, 21). etrade balance: exports and imports affect the exchange rate, through changes in the value of exports and imports. if exports increase, they lead to an increase in the value of the currency, but if they decrease, they do not affect the increase in the value of the currency, meaning that the relationship between the value of exports and the value of the currency is inverse. on the other hand, if imports increase, they reduce the value of the currency, but if they decrease, this does not affect the devaluation of the currency, but in most cases, when exports increase, imports decrease, and vice versa, and therefore the relationship between imports and the value of the currency is positive ( al-barwari , 2011, 27 ( . the second requirement : the theoretical framework of the gross domestic product . first: what is the gross domestic product? gross domestic product is defined as all goods and services that are finally produced in a particular country during a specific period of time, usually a year. gross domestic product is one of the geographical or regional concepts related to productive activities that take place within the political borders of that country, regardless of who owns those services. whether they are local citizens or foreigners as any good or service produced outside the borders of the country is not included in the calculations of the gdp, and there are several ways to measure the gdp, including: 1-final product method . this method measures the domestic product at the source, i.e. at the stage of its creation during the production process. the process of adding all the final goods and services that were produced using the available elements of production in society during a certain period of time (year) is done, where the value of the domestic product is estimated at current prices, i.e. based on the prevailing market prices for all final goods and services in the estimation period (al-khatib, diab, 34, 2013(. 2earned entry method. this method includes all incomes earned by the factors of production participating in the production process during a year, such as labor, land, capital, and organization. therefore, the domestic product within this method is all incomes earned from the factors of production of goods and services (wages, rent, interest, profit) (architecture, 315, 2016) . 3final spending method . it is one of the main methods for estimating the gross domestic product. according to this theory, domestic income is viewed from the aspect of final spending on all goods and services that are produced in a specific period of time, usually a year (ali, 1984) . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 79 www.americanjournal.org the second topic analysis of the reality of exchange rate indicators and economic growth (gross domestic product) in iraq for the period (2004 2022 ( the first requirement: exchange rate trends: the exchange rate index is one of the important tools in monetary policy, and it is also one of the economic indicators that the investor relies on in directing his investments, especially the foreign investor. the more stable the exchange rate is, it reassures and encourages investors to invest. when the value of the local currency decreases, this leads to a decrease in the exchange rate. the prices of goods exported by the state in the international market, which leads to losses incurred by the investor that were not expected when carrying out investment activity in the country hosting the investment (al-samarrai, 2006 , 134) by following table ( 1 ), it is clear that the central bank, through its monetary policy, raised the value of the dinar against the dollar during the period (2004-2020 ) . after it was (1453) dinars in (2004), it became (1166) dinars during the years ( (2012, 2013, and 2014) after which it stabilized at (1190) until the year (2020 ) , and thus we find that monetary policy has achieved a kind of stability in the exchange rate rate, as confidence began to return in the value of the iraqi dinar and its ability to be a store of value, and this encourages to attract the investor inside iraq and be one of the positive determinants in creating the appropriate investment environment (central bank economic report, 2020 , 71) , after which the exchange rate returned to rise significantly to reach ( 1482 ) until the year (2022 ) due to the policy it followed. monetary policy . table ( 1 ( official exchange rate in iraq for the period (20042022) the years official exchange rate (dinar/dollar) the years official exchange rate )dinar( 2004 1453 2014 1166 2005 1469 2015 1190 2006 1467 2016 1190 2007 1255 2017 1190 2008 1193 2018 1190 2009 1173 2019 1190 2010 1170 2020 1190 2011 1170 2021 1474 2012 1166 2022 1482 2013 1166 source : central bank of iraq, general directorate of corporate statistics, statistical bulletins for various years and for the period 2004-2022 the second requirement: trends in economic growth (gross domestic product . economic growth (gross domestic product) is considered one of the most important macroeconomic variables because it includes all macroeconomic sectors and components of a country, as its data are of great importance in measuring overall economic performance, and are also used to predict future macroeconomic trends as well as making economic policy decisions. also, economic growth (gross domestic product) represents a reflection of the imbalance occurring in the economy on the one hand, in addition to its expression of the growth occurring in the overall economy, which it highlights when american journal of business management, economics and banking volume 20 january, 2024 p a g e | 80 www.americanjournal.org studying any economy on the other hand, and since the iraqi economy is a rentier economy that depends primarily on oil production , as the oil sector constitutes the largest part in the formation of the gross domestic product, we find that an increase in economic growth (gross domestic product) is always accompanied by an increase in oil production and its prices in the global market. the development of this output and during the period of the study can be clarified in the following table . table (2) gross domestic product in iraq for the period 2004-2022 source: prepared by the researcher based on data : *reports published in the world bank, 2022. https://data.albankaldawli.org the gross domestic product shows the extent of the economic strength or weakness of the state in any country. in iraq, for example, where there is no thoughtful economic planning that can direct the existing capabilities and resources towards developing the infrastructure for investment in various sectors to raise the level of economic development and increase the welfare of society . the production of the crude oil sector constitutes the largest contributor to the formation of the gross domestic product in iraq after 2003, since iraq depends primarily on exporting oil and obtaining oil revenues in foreign currency, which is considered the basis for the development and renaissance of the iraqi economy, as it is considered the main feeder for all aspects of the economy . in the country, despite the large production of crude oil, its production has declined , due to the security conditions to which the country has been exposed, and the exposure of oil production companies and oil transport pipelines to significant damage as a result of wars. there remains significant reliance on the oil sector in generating output. gross domestic product (allawi, 2019, 174) , it is clear from table ( 2 ) that the year (gdp) (output .) gross domestic prices current )dollars( annual growth rate of gdp * % 2004 36 .627901762 ------ 2005 49.954890353 36.4 2006 65.140147197 30.4 2007 88.837055195 36.3 2008 131.614433712 48.1 2009 111.657581662 15 2010 138.516722649 24 2011 185.749664444 34 2012 218.002481737 17.4 2013 234.637675128 7.6 2014 228.415656174 2.6 2015 166.774109673 27 2016 166.602488747 0.05 2017 187.217660050 12.3 2018 227.367469034 21.4 2019 233.636097800 2.7 2020 184.369797315 21 2021 207.889333724 12.7 2022 264.182173793 27.2 https://data.albankaldawli.org/ american journal of business management, economics and banking volume 20 january, 2024 p a g e | 81 www.americanjournal.org the gdp in 2004 reached ( 36,627,901,762 ) dollars, and continued to rise until it reached ( 131,614,433,712 ) dollars in 2008, and reached growth rate of ( 48.1 % ) , due to the end of the war on iraq and the lifting of the sanctions that were imposed on the country before that period, as well as the rise in crude oil prices. in 2009, the gross domestic product decreased , reaching ( 111.657581662 ) dollars, with a growth rate that was negative, amounting to -15 % , as a result of the iraqi economy being affected by the global financial crisis that occurred in 2008, and the decline in oil prices worldwide. after that period, oil prices began to improve gradually in subsequent years, leading to an increase in the gross domestic product (gdp) amounting to ( 234.637675128 ) in 2013, with a growth rate of ( 7.6) . % ) , in which the gdp was at its highest level in that year , and in 2014 the gdp decreased to ( 228.415656174 ) dollars, and the growth was negative, represented by ( 2.6 %) , due to the control of terrorism over the western regions of iraq and the disruption of sectors the economic decline in those areas and their out of service, as well as the decline in oil prices, continued until 2017, when the gross domestic product reached ( 187.217660050 ) dollars, with an annual growth of ( 12.3 % ) . however, in 2018, the rate of gross domestic product increased to ( 227.367469034 ) dollars, the annual growth was ( 21.4 % ) , as a result of the improvement in the country’s economic situation and the return of oil prices to the rise . the domestic product continued to improve until 2020, as it decreased to ( 184.369797315 ) dollars and the annual growth was negative and valued at ( 21% ) , due to the corona pandemic that swept the world, which led to the disruption of economic sectors and trade exchange between countries of the world, and in 2021, the gross domestic product returned to the rise, reaching ( 207.889333724 ) dollars, the annual growth rate increased to ( 12.7 % ), and prices rose again to reach (264.182173793) dollars. annual growth rate to ( 27.2 . ) % the third topic: the impact of exchange rate fluctuations on gross domestic product . first: study variables: the study relied on the exchange rate index as an explanatory variable and the economic growth index (gross domestic product) for the period 2004 2022 and the (13 eviews ) methodology was used . table ( 3 ( study variables source: table based on the model description . second: test phelps perron phillips-perron test before proceeding with the estimation, the order of integration of the time series must also be studied, the ardl estimate is invalid in the presence of variables at the second difference i (2) , but it needs a combination of variables i(0) and i(1). to specify integration orders, as in the following tables: his description variable name variable symbol explanated variable exchange rate exchange rate re dependent variable gross domestic product gdp american journal of business management, economics and banking volume 20 january, 2024 p a g e | 82 www.americanjournal.org 1unit root test for levels . table ( 4 ( experiments of jazar al-wahda at the equator null hypothesis: unit root (individual unit root process) series: gdp, er date: 09/15/23 time: 01:16 sample: 2004s1 2022s2 exogenous variables: none newey-west automatic bandwidth selection and bartlett kernel total (balanced) observations: 72 cross-sections included: method statistics prob.** pp fisher chi-square 0.990719 0.91119 pp choi z-state 1.319587 0.906513 ** probabilities for fisher tests are computed using an asymptotic chi-square distribution. all other tests assume asymptotic normality. intermediate phillips-perron test results untitled series prob. bandwidth obs gdp 0.928342 1 36 er 0.656386 2 36 table: outputs of the statistical program (. eviews 13) . we note from the table above that the unit root tests for the data not stationary at level therefore, we will move to the first difference in order to stabilize all study variables . 2unit root test at the first difference . table ( 5 ( unit root tests after taking the first differences. null hypothesis: unit root (individual unit root process) series: gdp, er date: 09/15/23 time: 01:22 sample: 2004s1 2022s2 exogenous variables: none newey-west automatic bandwidth selection and bartlett kernel total (balanced) observations: 70 cross-sections included: 2 method statistic prob.** pp fisher chi-square 11.34018 0.02299 pp choi z-stat -2.205004 0.013726 ** probabilities for fisher tests are computed using an asymptotic chi-square distribution. all other tests assume asymptotic normality. intermediate phillips-perron test results d(untitled) series prob. bandwidth obs d(gdp) 0.0 0 2945 6 35 d(er) 0.041564 17 35 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 83 www.americanjournal.org table: outputs of the statistical program (. eviews 13) . we note from the table above that unit root tests are all for the data integrated at the first difference, and therefore no variable was determined at the second difference, so we have the right to apply the ardl model test . third : estimating and analyzing exchange rate fluctuations on gross domestic results . 1initial estimation of the ( ardl ) model. table ( 6 ( results of the initial estimation of the model ardl dependent variable: gdp method: ardl date: 09/15/23 time: 01:26 r-squared 0.922045 mean dependent var 179.1210 adjusted r-squared 0.904055 sd dependent var 52.58231 f-statistic 372.7177 durbin-watson stat 1.731591 prob(f-statistic) 2.988741 table: outputs of the statistical program (. eviews 13) . the data in the table above regarding the results of the initial estimation of the ardl model indicate the relationship between (exchange rate fluctuations) as an independent variable and (gross domestic product) as a dependent variable . the value of ( r 2 = 0.904055 ) , which shows the ability of the independent variable to influence the dependent variable, and the value of ( dw) reached ( 1.731591 ), meaning there is no correlation in the model. as for the fisher statistic ( f ), it is less than (5%), meaning that the model is statistically valid. moral. 2bound test ablet 7 bound test results null hypothesis: no relationship levels number of cointegrating variables: 1 trend type: rest. constant (case 2) sample size: 33 teststatistic value f-statistic 6.79058 10% 5% 1% sample size i(0) i(1) i(0) i(1) i(0) i(1) 30 3.303 3.797 4.09 4.66 6.027 6.76 35 3.223 3.757 3.957 4.53 5.763 6.48 asymptotic 3.02 3.50999 3.62 4.16 4.94 5.58 * i(0) and i(1) are respectively the stationary and non-stationary bounds. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 84 www.americanjournal.org table: outputs of the statistical program (. eviews 13) . the table above shows the results of the bound test for cointegration between the study variables if the calculated ( f ) is ( 6.79058 ) and is greater than the tabulated value, as they reached (4.6 6 ), at a significance level (5%), that is, the presence of a cointegration relationship between the variables . variables . 3the short-term impact between exchange rate fluctuations and gross domestic product. table ( 8) the short-term impact and error correction of exchange rate fluctuations and economic growth (gdp ( dependent variable: d(gdp) method: ardl variable coefficient std. error t-statistic prob. cointeq* -0.126217 0.026867 -4.697807 7.463069 d(er) 0.191147 0.046949 4.0713872 0.000388 table: outputs of the statistical program (. eviews 13) . the table above shows the results of the impact in the short term if exchange rate fluctuations, as an independent variable, have succeeded in proving their positive and significant impact on the economic growth index (gross domestic product) at a significance level less than (0.05), that is, when the exchange rates increase by 100 %, economic growth (gross domestic product) increases by 19 .% as for the correction factor ( 0.126217 ), this value is significant and negative, meaning that 12 % of short-term errors can be corrected in a unit of time, represented here by the year, in order to return to the equilibrium situation in the long-term. 4the long-term impact between exchange rate fluctuations and gross domestic product. table ( 9( results of the long-term impact between exchange rate fluctuations and gross domestic product variable * coefficient std. error t-statistic prob. er(-1) -0.13846 0.109874 -1.260189 0.2170 c 351.824 133.6429 2.632570 0.0130 table: outputs of the statistical program (. eviews 13) . the table above shows the results of the impact in the long term if exchange rate fluctuations, as an independent variable, did not it succeeds in proving its impact on the economic growth indicator (gross domestic product) because the probability exceeds 5% . american journal of business management, economics and banking volume 20 january, 2024 p a g e | 85 www.americanjournal.org 5long-run cointegration equation . table ( 10) cointegration equation deterministic: rest. constant (case 2) ce = gdp(-1) (-0.138462*er(-1) + 351.824479) table: outputs of the statistical program (. eviews 13) . 6cointegration series . figure (1) co-integration series source: figure output (eviews 13 ). 7the problem of normal distribution: the results showed that the estimated model does not suffer from the problem of normal distribution of the residuals, as follows : source: figure output (eviews 13 ( . figure ( 2 ) normal distribution -100 -75 -50 -25 0 25 50 75 100 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 ardl cointegrating series 0 2 4 6 8 10 12 -10 -5 0 5 10 series: residuals sample 2006s1 2022s1 observations 33 mean -1.05e-13 median 0.225253 maximum 9.192255 minimum -10.05768 std. dev. 4.698592 skewness -0.242163 kurtosis 2.640374 jarque-bera 0.500366 probability 0.778658 american journal of business management, economics and banking volume 20 january, 2024 p a g e | 86 www.americanjournal.org 8structural stability test: the results of the structural stability of the data showed that it is within the limits of critical values at a significance level (5%). this indicates the stability of the estimated model in the short term and the long term. source: figure output (eviews 13 ). figure ( 3 ): results of the structural stability test of the model conclusions and recommendations first: conclusions. 1we note through the value of ( r 2 = 0.904055 ) that it shows the ability of the independent variable, the exchange rate, to influence the dependent variable , meaning that exchange rates explain 90% of the changes occurring in the gross domestic product . 2dw was ( 1.731591 ), meaning there is no relationship in the model between the study variables . 3the fisher statistic ( f ) is less than (5%), meaning that the model is statistically significant. 4the results of the bound test for co-integration between the study variables showed that the calculated ( f ) was ( 6.79058 ), which is greater than the tabular value, as they reached (4.6 6 ), at a significance level (5%), meaning the existence of a co-integration relationship between some variables . 5i showed results impact in the term the short one that fluctuations prices exchange ,as a variable independent may be i passed in proof its effect and the positive and moral in indicator economic growth (gdp) ( y ) and at level moral less from (0.05), i.e when the increase in prices exchange by 100% van economic growth (gdp) rises by an amount 19 .% 6i showed results impact in the term the long if that fluctuations prices exchange ,as a variable independent did not succeed in proof its effect in indicator economic growth (gdp) ( y ) because the probability exceeds 5% . second: recommendations. 1importance activation role the bank central in a way larger from okay monitoring the changes in prices exchange and strive the permanent to discount price cashing dinar opposite currencies the other . 2 interest by factors influential in price exchange because its effect reflected in a way big on prices exchange . -0.4 -0.2 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 10 11 12 13 14 15 16 17 18 19 20 21 22 cusum of squares 5% significance american journal of business management, economics and banking volume 20 january, 2024 p a g e | 87 www.americanjournal.org 3 pursuit to governorate on independence the bank central from okay governorate on value the currency and even no it is repeated what it happened in a contract the eighties and the middle the nineties 4pursuit to use systems exchange most relevance for economics the iraqi with what it fits and circumstances economic that passes with it. references 1. al-barwari, muhammad salman muhammad, smail , khadija qadir, 2011, the impact of exchange rate changes on the general level of material prices in the city of erbil for the period 1994 2006, tanmiya al-rafidain magazine, saladin university erbil, volume 33, issue 102 2. al-baldawi , ahmed kased saad, the impact of exchange rate fluctuations on the iraqi stock market for the period 2004 2020, master’s thesis, tikrit university, 2022. 3. hussein, ali salman mal allah, 2008, the role of the interest rate and the foreign exchange rate in the movement of financial and international flows egypt and japan a case study for the period (1990 2005), master’s thesis, university of baghdad, college of administration and economics, baghdad, other than published 4. reda, saif muhammad, jawad, kamal kazem, 2022, the effect of the exchange rate on capital adequacy in iraq, a case study for the period 2010 2019, journal of management and economics, university of karbala, volume 11, issue 41 5. al-zoghbi, mutasim abbas turki jaata, the impact of exchange rate fluctuations on the financial performance of multinational industrial companies, master’s thesis, university of mosul, 2020. 6. issa, saad saleh, 2016, the impact of the exchange rate on economic growth (gross domestic product) a case study of iraq as a model for the period (2003 2012), tikrit journal of administrative and economic sciences, tikrit university, volume 12, issue, 36 7. mohamed, manal gaber morsi, 2017, evaluating the effectiveness of monetary policy in achieving exchange rate stability in egypt during the period (1990 2017), scientific journal of economics and trade, ain shams university, egypt, volume 47, issue 4. 8. al-mashhadani, khaled hamadi, abdullah, fa rahnak amin, 2020, measuring and analyzing the determinants of the parallel exchange rate in iraq for the period (2003 2018), tikrit journal of administrative and economic sciences, tikrit university, volume 16, issue 51 9. al-mayahi , marwa muhammad odeh, shindi, adeeb qasim, 2022, the effect of the foreign currency selling window on the exchange rate iraq, a case study for the period 2004 2019, alkut journal of economic and administrative sciences, wasit university, volume 14, issue 44 10. awad, saad salman, (2021), how to confront the economic recession in iraq, journal of management and economics, al-mustansiriya university, no. 125, iraq. 11. salma, doha, 2014, the impact of exchange rate fluctuations on the trade balance and ways to treat them, “a current study, algeria”, phd thesis, mohamed khudair university of biskra, faculty of economic, commercial and management sciences, algeria. american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 15 www.americanjournal.org social indicators of the use of human resources in support of business activity in uzbekistan alimardonova gulifzoda alimardon kizi student, karshi state university uzbekistan a b s t r a c t k e y w o r d s in this article, the development of entrepreneurship must have the necessary resources and have the opportunity to achieve them. often, we can observe a situation where it is almost impossible to get resources due to the demands of the society. this, of course, creates frustration and dissatisfaction among entrepreneurs. human resources, human capital, human potential, labor market, entrepreneurial ability, information resources. introduction in the conditions of today's market relations, this activity is one of the sources of property income of the population, along with organizing the economic development of the state. due to this, the state regularly supports business activities in legal, socio-economic terms, and encourages entrepreneurs to develop additional motivation for further development of their activities. in this case, together with the increase in the confidence of the entrepreneur in the state, the entrepreneur works with a sense of ownership responsibility. we can see that the procedures of doing business of our ancestors are perfectly described in our national religion of islam. in many verses of the "holy qur'an", the basis of islam, we can see views on property, property relations, entrepreneurship, trade and other various economic relations. in particular, the "holy qur'an" encourages people to work honestly, to be thrifty, to be kind and compassionate, and to be honest. he also called people to use all material goods and resources (land) productively. in the "holy qur'an" special attention is paid to any economic ownership. the concept of property in islam, its essence consists in the recognition that the wealth in the hands of people is the wealth of god, and people are only his caretakers on earth [9. b. 5.]. currently, certain works are being carried out in uzbekistan to develop entrepreneurship and regulate this sector by the state. as a result, the business environment in the country is expanding. if approached critically, "... there are a number of problems that are still waiting to be solved in the issues of further development of private property and entrepreneurship and ensuring their effective protection" [5. -b. 39.]. studying one or another aspect of foreign experiences and applying appropriate measures in solving these problems is one of the urgent issues for today. it seems that in the current social environment, private entrepreneurship and small business are among the necessary elements of the market economy. in the conditions of market relations, the private sector takes a higher place in the structure of the economy and has a serious impact on the rate of economic growth. that is why in our country attention is being paid to state support of entrepreneurship. american journal of business management, economics and banking volume 28 september 2024 p a g e | 16 www.americanjournal.org president of our country sh. mirziyoev specifically focused on the issues of state support for entrepreneurship and expressed the following opinion: "life itself has seen that the most effective way to ensure the development of our country and the well-being of our people is to support entrepreneurship." is doing" [6. -b. 67.]. taking this into account, special attention was paid to state support of entrepreneurship in our country. for this purpose, institutional frameworks have been created to support business activities in our country. the head of our state sh.m. we can give an example of decisions and decrees adopted by mirziyoyev. the state program on the implementation of the "strategy of actions" in the "year of support for active entrepreneurship, innovative ideas and technologies" reflecting the perspective plans of the five priority areas of development of the republic of uzbekistan in 2017-2021. presidential decree no. pf-5308 adopted on january 22, 2018 [1], adopted on april 11, 2018 "further reduction and simplification of licensing and permitting measures in the field of business activities, as well as measures to improve business conditions presidential decree no. pf-5409[2], adopted on march 7, 2019, "on measures to further strengthen guarantees of women's labor rights and support entrepreneurship" presidential decree no. pq-4235 [3], presidential decree "on measures to fundamentally improve the system of support and protection of entrepreneurial activities" adopted on may 14, 2019, "entrepreneurial initiatives in the territories and presidential decree "on measures to organize rapid implementation of projects". uzbekistan paid special attention to the organization of business activities in the conditions of market relations. this required the organization and development of property relations, business activities, which are considered the legality of market relations. in fact, entrepreneurship is a mechanism that drives the economy of any society. for this reason, each country supports entrepreneurship based on its internal capabilities. because private business activity is one of the important sectors of our country's economy and ensures social and economic stability. therefore, it is envisaged that the state support of entrepreneurship in the republic of uzbekistan will be carried out in the following procedures: support from the state budget; at the expense of various funds and associations; at the expense of providing various benefits in the funds and credit system; by always providing information; presentation in regional economic and social programs. also, private entrepreneurship and small business is the most flexible sector in terms of production, technology and management plans. this helps him quickly respond to changes in market conditions and adapt to minimal losses. the implementation of active innovations and the development of private entrepreneurship will help to eliminate the problems arising among the representatives of the strata engaged in entrepreneurial activities in society, to integrate science with production, to expand the area of economic dialogue, to reduce the unemployment rate, and to add to the population brings income, prevents the monopolization of the economy. the economic differences that have arisen in the process of globalization are mainly related to the inequality of property ownership and management of material resources. e. wright and e. giddens distinguish two main classes of owners in modern capitalist society. these are: property owner upper class; dispossessed people workers or emphasize the existence of a lower class [10. – s.22.]. researcher a.b. khayitov's "textbook of human resources management, the basics of human resources management, the formation and development of the concept of human resources american journal of business management, economics and banking volume 28 september 2024 p a g e | 17 www.americanjournal.org management, determining the organization's need for human resources, methods of encouraging and motivating employees, formation systems of professional adaptation of employees at the workplace, organizational management of the use of human resources in the organization, planning of the use of human resources in the organization, calculation and management of the effective use of human resources, quality management of human resources, contractual regulation of employment, employment and dismissal of employees, selection, placement and placement of employees attachment, basic principles of modern concepts of human resource management, as well as the study and research of theoretical and practical aspects of social partnership mechanisms in the field of labor [11]. we can see that comprehensive programs have been developed to improve the business and investment environment among the population, to create a favorable business environment for the development of entrepreneurship in our country, and to develop regions. in these programs, the representatives of the local authorities mainly conducted a study of the export potential of each region in order to attract local production enterprises in the regions of our republic to export, to study export problems in the region, and to develop the export of new goods to foreign markets. based on providing all-round assistance to entities engaged in business activities. president of our country sh. mirziyoev also spoke about youth entrepreneurship and said: "if we can develop entrepreneurial initiative in our youth, if we teach them to use funds correctly, we will solve not only economic, but also many social problems." . currently, the attention given to the entrepreneurial activity of young people in our country not only ensures their economic well-being, but also reduces their inclination to elements alien to society (drug addiction, religious extremism, etc.). at the same time, through the support of business activity by the state, there is an opportunity to solve a number of social problems in the society and increase the income of the population. therefore, preferential loans are provided on the basis of state programs for regular financial support of business activities in our country. banks have a great role in practical work in this regard. "banks he said, president sh. mirziyoev now it will be necessary to teach our people to entrepreneurship, business entrepreneurship and lead them to this" [7. -b. 158.]. therefore, it is necessary not only to provide preferential loans to those engaged in entrepreneurial activities, but also to form their passion for entrepreneurship. in order to support the population engaged in entrepreneurial activities by the state, retraining them for the profession is underway. as a result, there will be an opportunity to create new jobs. in order to implement this process, 700 million dollars were allocated in our country in 2019[8]. as a result of the rational use of human resources, the main share of the economy of our country is small business and private entrepreneurship, and this direction of activity forms the basis of the gross national income of the republic. the role of this activity in the economy of our republic is growing year by year. references 1. https://lex.uz/docs/3516847 2. https://www.lex.uz/docs/3676955 3. https://lex.uz/docs/4230944 4. https://lex.uz/docs/4335622 5. мирзиёев ш. танқидий таҳлил, қатъий тартиб-интизом ва шахсий жавобгарлик – ҳар бир раҳбар фаолиятининг кундалик қоидаси бўлиши керак. тошкент: ўзбекистон. 2017. –б. 39. https://lex.uz/docs/3516847 https://www.lex.uz/docs/3676955 https://lex.uz/docs/4230944 https://lex.uz/docs/4335622 american journal of business management, economics and banking volume 28 september 2024 p a g e | 18 www.americanjournal.org 6. мирзиёев ш. нияти улуғ халқнинг иш ҳам улуғ, ҳаёти ёруғ ва келажаги фаровон бўлади. тошкент: ўзбекистон. 2019. –б. 77. 7. мирзиёев ш. миллий тараққиёт йўлимизни қатъият билан давом эттириб, янги босқичга кўтарамиз. тошкент: ўзбекистон. 2018. –б. 158. 8. мирзиёев ш. олий мажлисга мурожаатномаси. https://uza.uz/oz/politics/zbekistonrespublikasi-prezidenti-shavkat-mirziyeevning-oliy-25-01-2020 ўзбекистон. 2019. –б. 67. 9. абдуллаев а. ва бошқалар. кичик бизнес ва хусусий тадбиркорлик: ташкил этиш, режалаштириш, бошқариш. тошкент: фан ва технология. 2005.-б. 5. 10. фурсова в. социология предпринимательства. учебно-методическое пособие. казан. 2017. с.22. 11. а.b. хаyitоv. “inson resurslarini boshqarish”: darslik. –t.:2019. https://uza.uz/oz/politics/zbekiston-respublikasi-prezidenti-shavkat-mirziyeevning-oliy-25-01-2020 https://uza.uz/oz/politics/zbekiston-respublikasi-prezidenti-shavkat-mirziyeevning-oliy-25-01-2020 american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 75 www.americanjournal.org deposit portfolio analysis methodology shermukhamedov bekhzodjon usmonovich tashkent institute of finance phd, associate professor e-mail: diplomat_701@mail.ru +998919523433 a b s t r a c t k e y w o r d s this article is devoted to the role and analysis of commercial banks in the economy of our republic, studied the data of their resource base, deposit operations carried out by commercial banks, analyzed the data of the deposit base. the importance of deposits in the activities of commercial banks is substantiated and the results of studies aimed at increasing the deposit base of banks operating in uzbekistan are presented. deposit, deposit base, deposit policy, transformation, diversification, balance sheet, bank balance sheet, deposit operations, time deposits. introduction the reforms carried out in the banking system of uzbekistan increase the level of capitalization of commercial banks, ensure their financial stability, expand the scope of lending to the real sector of the economy, and further improve the quality of banking services. improvement of relevant bank policies on attracting funds to bank deposits and effectively placing them in strategically important sectors of the economy, implementing innovative types of bank deposit services that are beneficial for customers, population and economic entities a number of problems related to strengthening trust in the banking system, increasing the level of efficiency of banking services determine the urgency of developing scientific proposals and practical recommendations aimed at adapting the methodology of evaluating the effectiveness of the deposit policy in commercial banks to modern conditions. the process of forming the deposit policy is closely related to the bank's interest policy, because the deposit rate is an effective means of attracting resources. a distinctive feature of the market of household deposits is the significant influence of interest rates on the formation of demand for deposits, that is, interest rates on deposits placed by banks are mainly determined by the growth of their resource base. specifies names. in addition, for different groups of banks, this effect is manifested at different levels. this diversity of the market leads to a significant redistribution of market shares among banks. due to the expansion of the activities of commercial banks in the conditions of the market economy, their demand for deposits, interbank loans and other banking resources has increased. successful operation of the bank depends on the correct organization of its activities, that is, the strength of the bank's resource base and the bank's stability. therefore, increasing the bank's resources is one of the main issues in its effective operation. in accordance with the "development strategy of new uzbekistan for 2022-2026" approved by the decree of the president of the republic of uzbekistan dated january 28, 2022 no. the share of the private sector is set to 60 percent. [1] american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 76 www.americanjournal.org it is known that today the process of transformation of commercial banks continues, the privatization of commercial banks with a high share of the state, the emergence of private banks in the economy, increasing the level of capitalization and deposit base of banks, strengthening their financial stability and reliability is the main source of the formation of resources of commercial banks. it creates the need to research the development of deposit operations and the improvement of their accounting as an independent object and determines the relevance of this topic. the more stable and long-term the bank's resources are, the more important links of the economy, that is, they allocate loans for the purchase of technologies or, in this way, for the field of science. therefore, we can increase their stable resources by attracting the idle funds of individuals to deposit for commercial banks. it is known that in today's studies, as a component of the development strategy of banking activities on the formation of the deposit policy, as well as in the determination of the final, intermediate and operational goals of the deposit policy, the forward looking approach is a methodology for assessing the effectiveness of the deposit policy in commercial banks. the fact that some issues related to it are neglected, makes it necessary to activate researches in this regard [2]. analysis of literature on the topic it should be noted that, in accordance with the approach recognized by scientists, the formation and implementation of the deposit policy is directly related to the improvement of the deposit portfolio analysis methodology. sh. z. abdullayeva, one of the economists of our country, analyzes in her research the relations related to the practice of deposits and not money or securities given to a financial-credit or banking institution, but customs payments along with bank deposits, contributions to pay fees, taxes, etc. are also interpreted as deposits[3]. a.a. omonov emphasizes that special attention should be paid to the strategic planning process in the management of bank resources, as well as the expediency of balancing the timing of attracting and deploying financial resources [4]. according to u.d. ortikov, it is important to follow the indicators describing the stability of the deposit base of commercial banks when developing the deposit strategy of commercial banks and putting it into practice. the reason for this is that the possibility of determining the extent to which the tactical tools used in the deposit policy of commercial banks correspond to the deposit strategy is based on the analysis of the indicators describing the stability of the commercial bank's deposit base [5] . a. burya suggests the use of three coefficients to determine the stability of deposit resources: balance volatility index, balance change synchronicity and reliability potential of funds in the account. in its methodology, it is necessary to distinguish the main approaches of analysis of funds of bank customers, which: firstly, involves rotation of customer groups; secondly, the coefficients describing the stability of cash balances in the accounts for each group are calculated; thirdly, the current state of the customer base is evaluated; fourth, its trends of change are determined; fifth, further development of the customer base is forecasted. at the same time, it should be noted that the author of the methodology, assessing the stability of the customer base, uses generally accepted indicators ("sinkage rate", "oscillation amplitude", "average storage time"), so his method has certain shortcomings and contradictions[6]. e.p. according to zharkovskaya. for the analysis of the deposit portfolio, it seems useful to divide time deposits into large and medium categories. in large deposits, it is suggested to include balances exceeding the amount specified by the bank. this category of time deposits is in the danger zone, because unexpected withdrawal of funds by customers can have negative consequences. according to the researcher, a separate analysis of interbank loans is required. the existence of these obligations in commercial banks is evaluated as a positive situation. this shows that the bank is recognized in the market [7]. g.s. according to panova, it is a priority to analyze the deposit portfolio by dividing it into subjects american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 77 www.americanjournal.org of attraction of resources from customer-depositors, their relevance and rates [8]. m.a. within the framework of current and strategic planning, pomorina considers the process of analyzing financial results, passive operations, including deposit operations, identifying risks, carrying out their control in the field of attracting client funds, searching for and jointly determining the need for financial resources . with active operations. from the point of view of m.a. pomorina. it is necessary to monitor and prevent risks in the field of deposit operations [9]. through the researches of l.g.batrakova, the processes related to the use of simple and complex interest in the passive policy of commercial banks and the implementation of their equivalence analysis are studied. the process of establishing a system of measures for the nature, assessment, management and insurance of interest rate risk in the implementation of the deposit policy is shown [10]. according to most economists, the assessment of the efficiency of the commercial bank's deposit portfolio should be based on a comparison of the interest income on loans and the interest costs on the attracted deposit resources. research methodology in the process of preparing a scientific article, the comparative analysis of data based on tables, grouping of data, statistical grouping based on systematic analysis of abstract-logical thinking, induction and deduction, and expert evaluation methods were also effectively used. analysis and results it is proposed to use the following indicators to analyze the attraction and turnover of resources: the number of turnover of deposits for the period by category depositors, coefficient of attraction of deposit resources by categories of depositors, coefficient of concluded deposit contracts by categories of depositors. the order of calculation of these indicators and their economic essence are presented in table 1. table 1 methodology for attracting deposit resources and calculating turnover indicators [11]. index calculation method economic object 1. number of revolutions return amount ratio shows how many times deposits for the period credit deposits turned into money by category organizations are average deposits for a certain period. contributors balance of deposits for the period more revolutions for each category means how effective they will be. used for each category 2. ratio quantity ratio shows the total attract a deposit involved deposit deposit resources for 1 soum. resources by category resources for a given amount provided funds contributors commercial bank loans customers in the form of credit for each category each category 3. ratio quantity ratio shows magnification prisoners structured deposit in amount (decrease). deposit agreements contracts for the period deposit agreements for each by category number of contracts at the end categories of contributors contributors term for each category economic object taklif etilayotgan ko‘rsatkichlarni umuman bank va filiallar bo‘yicha, omonatchilar toifalari, jalb american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 78 www.americanjournal.org qilish shartlari, valyuta turlari bo‘yicha hisoblab chiqish va tahlil qilish maqsadga muvofiqdir. banklarning moliyaviy barqarorligi, iqtisodiy samaradorligi va risklarning xavfsiz me’yorining ta’minlanishi, ularning depozit bazasini mustahkamligi bilan bevosita bog‘liqdir. keyingi yillarda xalqaro va mahalliy moliya bozorlarida depozit mablag‘larga bo‘lgan talabning ortib borishi banklar depozit bazasiga oid dolzarb masalalarni yuzaga chiqarmoqda. xususan, banklar depozit bazasining iqtisodiy mazmunini nazariy va amaliy jihatdan tadqiq qilish, shuningdek, uning manbalari va unga ta’sir qiladigan omillarni aniqlash shular jumlasidandir. tijorat banklari tomonidan depozit operatsiyalarini amalga oshirish va bo‘sh turgan moliyaviy mablag‘larni jalb etish bo‘yicha hozirgi kunda raqobat kuchaymoqda.banklar tomonidan turli xil shartlar asosida depozitlarning turlari oshib bormoqda. milliy valyuta bilan bir qatorda xorijiy valyutadagi depozitlar ham keng rivojlanmoqda. tijorat banklariga bo‘lgan ishonch yil sayin oshib bormoqda. buni xorijiy valyutadagi depozitlarning jami depozitlardagi ulushi ortib borayotganligida ko‘rishimiz mumkin. xususan, 2017 yilda jami depozitlarning 26,9 foizini xorijiy valyutadagi depozitlar tashkil etgan bo‘lsa, 2021 yilga kelib bu ko‘rsatkich 43,1 foizga yetgan. 2017 yilda jami depozitlar 37,2 trln. so‘mni tashkil etgan bo‘lsa, shundan xorijiy valyutadagi depozitlar 10,0 trln. so‘mdan ortiqni tashkil etgan. 2021 yilga kelib esa jami depozitlar summasi 114,7 trnl. so‘m bo‘lgani holda xorijiy valyutadagi depozitlar summasi 49,4 trln. so‘mga yetgan. tijorat banklari foiz stavkalaridan har doim iqtisodiyotni makro va mikro darajada tartibga solish uchun foydalaniladi. agar iqtisodiyotni mikro darajada o‘rganadigan bo‘lsak, tijorat banklari tomonidan foiz siyosatini qay darajada samarali ishlab chiqganligiga, ya’ni kredit va depozitlar bo‘yicha o‘rnatilgan foiz stavkalariga bog‘liq bo‘ladi. mazkur holat valyuta bilan bog‘liq bo‘lganligi uchun bank amaliyotida valyuta riskini keltirib chiqaradi va bu banklarning oqilona siyosat yuritishga undaydi. atb “turonbank” balansi 2014–2022 yillar davomida 32 439115 mln.so‘mga oshgan va 2022 yil 1 yanvar holatida yilga 11 009 621 mln.so‘m bo‘lgan. balansning bunday tezkor ko‘payish asosan mijozlarning depozit himsobvaraqlarida mablag‘lar qoldig‘ining oshib borishi (2014–2022 yillar davomida 482770310 mln.so‘mga), (1-jadval). 2-jadval atb “turonbank” balans ko‘rsatkichlari dinamikasi,[13], (mlrd. so‘m va foizda) indicators 2015 2016 2017 2018 2019 2020 2021 2022 bank balance 590 759 702 906 874 065 1 519 158 3 049 678 5 978 848 8 714 080 11 009 621 customer funds (deposits) 474 639 565 666 710 139 903 851 1 199 429 1 953 582 2 086 189 2 837 762 issued debt securities 11 993 13 656 12 484 10 917 8 102 7 452 6 183 5248 other debts received 6 761 14 501 54 888 232 371 892 333 985 104 1 541 963 2 478 963 private equity 61 831 77 158 85 123 322 948 822 985 1 090 585 1 210 159 1 915 190 loans granted 397 228 425 821 516 424 921 117 2 271 891 4 263 902 6 669 189 8 129 572 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 79 www.americanjournal.org despite the increase in the absolute (absolute) amount of funds in customers' deposit accounts, the weight of deposits in the bank's balance sheet has had a decreasing trend since 2017 and 2022. in particular, in 2014-2022, the weight of deposits in the bank balance was 80.3, 80.4, 81.2, 59.5, and 39.3 percent, respectively, while in 2021 it was 23.9 percent, in 2022, it was 25.7 percent. during the analysis period, the weight of loan funds had a growing tendency, unlike deposits. the share of received loans in the bank balance increased from 1.1% in 2014 to 22.3% in 2022. as a result, the ratio of deposits to the balance of credit flows decreased from 119.5 percent in 2014 to 34.9 percent in 2022. in turn, the ratio of debt funds to credit flows increased from 1.7 percent in 2014 to 30.4 percent by 2022, and the ratio of debt funds to private capital reached 129.4 percent as of january 1, 2022. conclusions and suggestions commercial banks in the process of transformation are based on learning how to attract resources through effective organization of deposit policy to achieve this goal of strengthening the resource base of commercial banks of the republic of uzbekistan by increasing the amount of savings deposits, we offer the following: first, it is necessary to ensure a positive level of interest rates paid to savings deposits of legal entities; secondly, it is necessary to ensure that the savings deposits of the population are fully and timely returned in cash by commercial banks. it is necessary to develop a strategy aimed at ensuring the stability of deposits in commercial banks of our republic. for this, first of all, it is necessary to develop marketing that will increase the attractiveness of deposit accounts to customers; secondly, a system of indicators describing the level of stability of deposits should be developed; thirdly, it is necessary to identify the group of customers who form the basis of the bank's deposit base and offer them a comprehensive deposit-loan service. complex methodology of deposit analysis commercial bank portfolio is a continuous cyclical process that includes the following stages: the first stage. deposit market monitoring. the second stage. analysis of the actual indicators achieved by the state of deposit resources for the reporting periods. the third stage. planning the volume of deposit resources attraction by groups of depositors, terms, currency types and other analytical sections for the current and long-term perspective. the fourth stage. assessment of the stability of attraction of deposit resources. lowering the mandatory reserve requirement for foreign currency deposits. in conclusion, we can say the following: if you have money, but do not know where to put it, keep it in the bank your money will be returned in full and with profit; if you don't know in which currency to save money, depending on the perspective save in foreign currency for a long period, mostly in cash assets 120 372 183 623 285 446 496 098 663 265 931 241 1 182 258 1 605 421 the weight of deposits in the bank balance 80,3 80,4 81,2 59,5 39,3 32,6 23,9 25,7 the weight of issued debt securities on the bank balance sheet 2,1 1,9 1,4 0,7 0,3 0,12 0,07 0,04 the weight of received loans in the bank balance 1,1 2,1 6,3 15,3 29,3 16,4 17,6 22,3 the weight of private capital in the bank's balance sheet 10,5 10,9 9,7 21,2 26,9 18,2 13,8 17,2 the ratio of deposits to loans 119,5 132,8 137,8 98,1 52,8 45,8 31,2 34,9 the ratio of loan funds to loans 1,7 18,8 10,6 25,2 39,3 23,1 23,1 30,4 the ratio of equity to loans 15,6 18,1 16,5 35,1 36,2 25,5 18,1 23,5 the ratio of debt funds to private capital 10,9 18,8 64,5 71,9 108,4 90,32 127,4 129,4 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 80 www.americanjournal.org dollars, and in soums for a short period. and most importantly, "where to invest the money?" may the question always be relevant for you. because the urgency of the matter at least means you still have money. references 1. the collection of legal documents of the republic of uzbekistan "development strategy of new uzbekistan for 2022-2026" approved by the decree of the president of the republic of uzbekistan no. pf-60 of january 28, 2022. tashkent, 2022. 2. shermuhamedov b.u/ methodology for evaluating the efficiency of deposit policy in commercial banks "electronic scientific journal of finance and banking" issue v 2020 http://www.journal.bfa.uz/maqola/shermuhamedov_b_5_son.pdf 3. abdullaeva sh.z. "banking". economy and finance. 2017 -312 p. 4. omonov a.a. issues of effective management of resources of commercial banks. i.f.d. science narrow take three. destiny eat diss. autoref. tashkent, 2008. 35 p. 5. ortikov u.d. bank resources and their management. "finance, money circulation and credit" i.f.n. diss. abstract. academy of banking and finance of the republic of uzbekistan. 19.09.2008. -t., 2008. -20 p. 6. burya, a. methodology for analyzing bank client funds [text] / a. burya. moscow: vagrius, 1998 154 p. 7. money, credit, banks [text]: textbook / g.i. kravtsova [and others]; edited by g.i. kravtsova. minsk: bseu, 2012. 340 p. 8. panova g.s. banking services for individuals [text]: monograph / g.s. panova. moscow: dis, 1994. 352 p. 9. pomorina m.a. internal procedures for assessing capital adequacy (icaap): problems of interaction between the regulator and the bank [text] / m.a. pomorina, e.k. purtova // banking. 2016. no. 5. p. 33-37. 10. batrakova l.g. analysis of the interest rate policy of a commercial bank: textbook. – m.: logos, 2015. – 152 p. 11. rykov s.v. improving the formation and implementation of the deposit policy of commercial banks in the russian federation [text] / rykov s.v. samara: vagrius, 2019 144 p. 12. o’zbekiston respublikasi markaziy banki ma’lumotlari asosida tayyorlandi https://cbu.uz/oz/statistics 13. “turonbank” atb moliyaviy hisobotlari asosida tayyorlandi. www.turonbank.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 50 www.americanjournal.org today's problems and ways of solving the problems of green economy todjiboeva nargiza jumaboevna, teacher of the department of languages, samarkand branch, tashkent state university of economics nargizafarid@mail.ru a b s t r a c t k e y w o r d s while the concept of a green economy holds significant promise for addressing environmental and social challenges, it also faces several problems and obstacles in today's world. addressing these problems requires a concerted effort from governments, businesses, and civil society. while challenges exist, the transition to a green economy remains crucial for mitigating environmental crises and ensuring long-term prosperity. the article discusses about the problems and also developing and implementing effective policies, fostering innovation, ensuring equitable transitions, and educating the public about the importance of sustainability. green technologies, sustainable practices, resource-efficient solutions, innovation renewable energy, clean transportation, reduction targets, policies, programs. introduction here are some of the key problems associated with the green economy today: economic transition costs: shifting from traditional, resource-intensive industries to green and sustainable ones often involves substantial upfront costs for businesses and governments. this transition can be economically challenging, particularly for industries with vested interests in the status quo. inequality and displacement [1]: the transition to a green economy can exacerbate inequalities if not managed properly. some workers in carbon-intensive industries may lose their jobs, and communities dependent on such industries can face economic hardship. ensuring a just transition that provides training and support for affected workers is crucial. resource scarcity: as the global population continues to grow, resource scarcity becomes a critical issue. balancing resource conservation with economic growth is a complex challenge, especially in industries heavily reliant on finite resources. short-term focus: many governments and businesses prioritize short-term economic gains over long-term sustainability. this can lead to decisions that prioritize immediate profits at the expense of environmental and social considerations. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 51 www.americanjournal.org policy inconsistencies: inconsistent or changing government policies can create uncertainty for businesses investing in green technologies and practices. clear, stable policies are essential to provide incentives for sustainable development. lack of investment [2]: while there is growing interest in green technologies and initiatives, insufficient investment can hinder the rapid adoption of sustainable practices. access to capital and funding remains a barrier for many green projects. resistance from traditional industries: established industries, such as fossil fuels and agriculture, often resist efforts to transition to greener alternatives, as they may perceive such changes as a threat to their profitability [3]. consumer behavior: encouraging consumers to adopt more sustainable consumption patterns can be challenging. behavioral change is often slow, and some eco-friendly products can be more expensive, limiting access for lower-income individuals. technological limitations: green technologies, such as renewable energy and energy storage, still face technical limitations, including intermittency and storage challenges, which can slow their widespread adoption. global cooperation: addressing global environmental challenges, like climate change, requires international cooperation. however, geopolitical tensions and differing priorities among nations can hinder coordinated efforts. measuring progress: determining how to accurately measure progress toward a green economy and sustainable development remains a complex issue. developing reliable and comprehensive metrics is an ongoing challenge. greenwashing: some businesses engage in "greenwashing," where they exaggerate or falsely claim their environmental efforts, misleading consumers and investors [4]. environmental degradation: despite efforts to promote sustainability, environmental degradation continues in many areas, such as deforestation, habitat loss, and pollution. ways of solving the problems in today's green economy solving the problems associated with the green economy in today's world requires a multifaceted and collaborative approach involving governments, businesses, civil society, and individuals. here are some ways to address these challenges: invest in research and development: allocate resources to research and development efforts focused on green technologies, sustainable practices, and resource-efficient solutions. encourage innovation in areas like renewable energy, clean transportation, and circular economy practices [5]. stable and supportive policies: governments should establish clear, stable, and supportive policies that provide incentives for sustainable practices. this includes tax incentives, subsidies for renewable energy, and emissions reduction targets. just transition: implement policies and programs that ensure a just transition for workers and communities affected by the shift to a green economy. provide training, education, and support to help workers in declining industries transition to new, green jobs. public awareness and education: raise public awareness about the benefits of a green economy and the importance of sustainable practices. develop educational programs that teach individuals about conservation, energy efficiency, and responsible consumption [6]. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 52 www.americanjournal.org inclusive decision-making: include a diverse range of stakeholders in decision-making processes related to the green economy. engage communities, indigenous groups, and environmental organizations to ensure a variety of perspectives are considered. investment in sustainable infrastructure: develop and invest in green infrastructure projects, such as public transportation, renewable energy grids, and green buildings, to promote sustainability and create jobs [7]. financial incentives: provide financial incentives for businesses and individuals to adopt green practices. this can include subsidies for electric vehicles, grants for renewable energy projects, and reduced taxes for eco-friendly products. global cooperation: encourage international cooperation to address global environmental challenges. participate in international agreements and initiatives aimed at mitigating climate change, conserving biodiversity, and promoting sustainable development. corporate responsibility: encourage businesses to adopt sustainable practices and transparent reporting. recognize and reward companies that make genuine efforts to reduce their environmental impact. consumer education: educate consumers about the environmental and social impact of their choices. promote sustainable and eco-friendly products, and provide information on responsible consumption. green standards and certifications: establish and enforce green standards and certifications for products and services. these standards can help consumers make informed choices and incentivize businesses to adhere to sustainable practices. carbon pricing: implement carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, to incentivize businesses to reduce their greenhouse gas emissions. support sustainable agriculture: promote sustainable farming practices, organic agriculture, and local food systems to reduce the environmental impact of food production [8]. conservation and restoration: invest in the conservation and restoration of natural ecosystems to preserve biodiversity and ecosystem services. measuring progress: develop comprehensive and standardized metrics for measuring progress toward green economy goals. this can help track environmental, economic, and social indicators effectively. enforce regulations: ensure that existing environmental regulations are enforced and updated as needed to address emerging challenges. addressing the problems of the green economy requires a long-term commitment to sustainability and a willingness to adapt to changing circumstances. it also involves collaboration at multiple levels, from local communities to the global stage, to achieve the shared goal of a more sustainable and equitable world [10]. in conclusion, the journey toward a green economy is both a profound challenge and an immense opportunity for our world today. as we grapple with environmental degradation, social inequalities, and the imperative for sustainable economic growth, the principles of a green economy offer a promising path forward. by investing in green technologies, fostering innovation, and implementing policies that prioritize sustainability, we can overcome the obstacles that stand in the way of a healthier planet and more equitable societies. furthermore, by promoting a just transition that supports workers and communities, we can ensure that no one is left behind in this transformative process. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 53 www.americanjournal.org the problems associated with the green economy are indeed significant, from economic transition costs to the resistance of traditional industries. however, they are not insurmountable. with collective determination and a commitment to collaboration, we can navigate these challenges and pave the way for a future where economic prosperity harmonizes with environmental stewardship and social wellbeing. ultimately, the green economy is more than an abstract concept; it is a call to action. it is a recognition that the choices we make today will shape the world we leave to future generations. as we work to address the problems of the green economy, we must keep in mind that the rewards are not only economic but also ecological and societal. the green economy is a pathway toward a more sustainable, resilient, and prosperous future for all. it is a vision worth pursuing with unwavering determination and hope for a better world. references 1. tojiboeva, n. j. (2022). the role of innovative educational technologies in the teaching foreign language. science and education, 3(12), 593-597. jumaboevna, t. n. (2023). the importance of green areas in the economy. western european journal of modern experiments and scientific methods, 1(3), 69-72. 2. rustamovna, a. d. (2023). methods of teaching the russian language to foreign students. spectrum journal of innovation, reforms and development, 20, 64-68. 3. abdualieva, d., & bakhtieva, r. (2023). increasing the effectiveness of spiritual and educational work in educational institutions: problems and solutions. innovative research in modern education, 1(9), 34-36. 4. tasheva d.s., kubaeva n.a. modern educational technologies in the aspect of a student-centered approach in teaching foreign languages. eurasian journal of learning and academic teaching. volume 12|, 2022. -p.35. www.geniusjournals.org 5. kholbaeva d.d., tasheva d.s. pedagogical techniques and methods of forming interest in the lessons of the russian language. web of scientist: international scientific research journal, issn: 2776-0979, volume 3, issue 3, mar., 2022. -p.238 6. kholbaeva, d., & tasheva, d. (2022). theoretical and practical aspects of monitoring the acquisition of knowledge, skills and abilities by students in the russian language in universities. евразийский журнал социальных наук, философии и культуры, 2(11), 115-118. 7. dilorom tasheva. approaches and principles of teaching russian language. international conference on innovative technology and future trends in education. san francisco, usa. july, 30th 2021. -p. 7. https://conferencea.org 8. tasheva dilorom, djanzakova matluba. the role of literary text in teaching the russian language. international multidisciplinary conference. manchester, england. 25th december 2023. -p.19. https://conferencea.org 9. tasheva, d. (2020, december). the methodology for the development of unconventional russian language lessons. in archive of conferences (vol. 11, no. 1, pp. 9-10). 10. tasheva, d. (2022). methods of using didactic materials to enhance activities in the russian language lessons. ta'lim va rivojlanish tahlili onlayn ilmiy jurnali, 2(1), 325-328. http://www.geniusjournals.org/ https://conferencea.org/ https://conferencea.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 17 | p a g e to what extent does customers’ perspective influence banking liquidity? an applied research on a sample of commercial banks listed on the iraq stock exchange ahmed ali kurd ministry of education salah al-din education directorate ahmed.a.kurdi86@gmail.com dured musa mahmoud university of tikrit college of administration and economics dured.aldore@tu.edu.iq ibrahim ali kurdi / university of tikrit college of administration and economics im_li2001@tu.edu.iq a b s t r a c t k e y w o r d s the research aims to demonstrate the impact of customers’ perspective on the bank’s liquidity. the study relied on a descriptive study approach to study the reality of commercial banks. the study sample was based on the inductive and deductive method in defining a problem and giving a theoretical framework on the nature of the relevant international standards and their impact. the analytical method was relied upon through the researchers provided a practical framework for the most common banking performance indicators for analyzing the financial data of the commercial banks in the study sample, as banks were selected from the banking sector within the commercial banks listed on the iraq stock exchange, namely (the bank of baghdad, the assyria international investment bank, and trans-iraq bank). . for the period from 2017 to 2020, the study concluded with a number of general and specific recommendations for the commercial banks sampled in the study, the most important of which was the necessity of applying and giving priority to the perspective of. customer perspective, banking performance, iraqi commercial banks. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 18 www.americanjournal.org introduction the customer perspective is one of the most important perspectives of the balanced scorecard, as it is considered an extension of the development of management thought and techniques based on strategic change and re-evaluation of strategic objectives to support creative business processes, stimulated by advanced information systems and networks with the aim of achieving superior levels of performance, as it targets customer satisfaction and is the customer at the present time. the master of the market because the success of the establishment depends on his conviction in the services and products it provides the study problem will the customers’ perspective, the use of its indicators, and its impact on the bank’s liquidity? study objectives. the main objective of the study is to demonstrate the impact of customers’ perspective on the liquidity of the commercial banks in the research sample. the most important objectives of the study can be summarized as follows : 1. providing an introductory framework on the concept of customer perspective, how to employ its indicators, and their impact on the bank’s liquidity. 2. using customers’ perspective to identify strengths in performance and maintain them continuously over the long term, and to identify defects and weaknesses in banking performance and avoid them in the near future through a set of conclusions and recommendations that have been presented . the importance of studying the importance of the study stems from the fact that using the customers’ perspective will contribute greatly to following corrective methods and procedures to reduce weak points and optimally exploit strengths, which in turn works to develop and improve the level of performance, which increases the bank’s liquidity because of its great importance and positive impact in improving economic conditions. for the country, and directing the attention of banks to identifying the shortcomings and lack of efficiency and effectiveness of banking performance . study hypothesis is there a significant effect of customers’ perspective on the banking liquidity of the banks in the research sample ? study method 1. the inductive method was relied upon in defining the problem of the study, i.e. shifting from the specific to the general by generalizing the recommendations of the study sample to the banks listed on the iraqi stock exchange . 2. the deductive method was relied upon by providing a theoretical framework about the nature of the balanced scorecard in accordance with relevant international standards and its impact on improving banking performance, that is, the shift from the general through reviewing scientific literature to the specific (study sample.) american journal of business management, economics and banking volume 19 december, 2023 p a g e | 19 www.americanjournal.org 3. the analytical method was relied upon by the researcher providing a practical framework for the most common banking performance indicators that were derived from international standards according to the dimensions of the balanced scorecard for analyzing the financial statements of the commercial banks sample of the study . limitations of the study: the study framed the current topic within spatial and temporal limits as follows: spatial limits of the study: 1. this study was applied to a sample of commercial banks listed on the iraq stock exchange. banks were selected from the banking sector within the commercial banks listed on the iraq stock exchange, namely (bank of baghdad, assyria international investment bank, and trans-iraq bank) 2. time limits of the study: between 2017 and 2020 . data collection sources we relied on electronic scientific websites, scientific libraries, and the dissertations, dissertations, and published research they contained to enrich the study with its theoretical and practical aspects, as well as international standards, published financial statements, laws, legislation, and instructions related to the study sample. attended by the customer the customer represents one of the basic pillars of the banking relationship. the importance of customers in banks comes because the customer is the one who generates profit for the bank, as this dimension measures the institution’s performance with customers and market sectors through the use of some indicators such as market share, customer retention, customer profitability, and acquiring new customers ( kaplan & norton 1999:4) the importance of this dimension appears from the fact that customer values and profitability are the basic keys to the standards through which the organization can give a clear and understandable vision to customers, know and meet their needs and expectations, and gain their loyalty, which is reflected in the strength of competition, increased profits, and increased sales and market share ( 78: 2016, vayvay & calendar). the first requirement: liquidity indicators liquidity indicators are among the most important means through which liquidity management is supported in the bank to avoid bankruptcy and increase depositors’ confidence in the bank and by working to create liquidity in the bank so that it can meet regular and sudden withdrawal movements . first: the cash balance ratio: this ratio indicates the adequacy of quick cash assets in repaying deposits, i.e. the banks’ reliance on liquid assets to cover deposits, and it is calculated by dividing the cash assets by the total deposits (iraqi financial stability, 2016: 31). cash balance = (cash on hand)/(total deposits) x 100 second: the legal liquidity ratio: it is calculated by summing the primary reserves with the secondary reserves over the total deposits. statutory liquidity ratio = (secondary reserves + primary reserves)/(total deposits( american journal of business management, economics and banking volume 19 december, 2023 p a g e | 20 www.americanjournal.org third: lending ratio: it is calculated by dividing the total bank loans and advances by the total deposits. lending ratio = (loans and advances)/(total deposits) x 100 (al-karawi, 2012: 9). employing customer service to improve banking performance : the customer is considered one of the most important basic pillars in the banking relationship. the importance of customers in the bank comes because the customer is the one who generates profits for the banks. the customer dimension is also an important source in the composition of the commercial bank, as this dimension reflects the markets and customers that banks rely on in competition among counterparts, and thus maintaining the customer and gaining his satisfaction by providing advanced banking services that shorten the routine procedures and long time to obtain the desired service is extremely important. moreover, the dimension of customers forces managers to determine in which area their banks excel? who are the users of its products and services? as a preliminary step to defining goals and standards, financial institutions choose two sets of standards in the customer dimension (hanson, etal. 408: 408, 2003). the first set represents general standards that enable banks to use them practically, while the second set of standards represents distinct performance measures for customer results. the question is what a bank must offer customers to achieve high levels of satisfaction, retention, acquisition, and market share. performance measures measure the value propositions that banks are trying to present to target market segments and customers (khalaf and ismail, 2020: 137). they enhance opportunities for survival and growth as a result of the continuous development in the development of modern technologies that have led to the creation of new ways of providing banking services and products, and after what has been clarified the relationship between the customer dimension and basel iii, camels, cobit, and iso standards in the process of improving banking performance has become such that we can present a set of important indicators that were concluded according to table (1) below: indicator name indicator equation 1 bank value ratio = 𝒎𝒂𝒓𝒌𝒆𝒕 𝒗𝒂𝒍𝒖𝒆 𝒃𝒐𝒐𝒌 𝒗𝒂𝒍𝒖𝒆 2 current accounts index = 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔−𝒚𝒆𝒂𝒓−𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 − 𝑪𝒖𝒓𝒓𝒆𝒏𝒕−𝒚𝒆𝒂𝒓−𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝒇𝒐𝒓 𝒕𝒉𝒆 𝒑𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒚𝒆𝒂𝒓 ×100 % 3 savings accounts index = 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒀𝒆𝒂𝒓 𝑺𝒂𝒗𝒊𝒏𝒈𝒔 𝑨𝒄𝒄𝒐𝒖𝒏𝒕𝒔 − 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒀𝒆𝒂𝒓 𝑺𝒂𝒗𝒊𝒏𝒈𝒔 𝑨𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑺𝒂𝒗𝒊𝒏𝒈𝒔 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝒇𝒐𝒓 𝒕𝒉𝒆 𝒑𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒚𝒆𝒂𝒓 ×100% the customer dimension: the customer dimension focuses on achieving customer satisfaction and gaining continued loyalty, as interest in the bank’s customers is an indicator of the bank’s efficiency and success in maintaining its customers. to demonstrate the impact of applying modern international standards on the study sample, the researcher prepared customer dimension ratios to improve banking performance . athe banking institutional value ratio: for the purpose of measuring the value of the banking institution, i use the twain model (tobin’s q), whose idea is summarized through the market value american journal of business management, economics and banking volume 19 december, 2023 p a g e | 21 www.americanjournal.org to the book value. if the value of tobin’s q reaches one or more correct points, this means a positive indicator that the value of the bank higher than the value of its assets, and this indicates an increase in the market value of the bank’s shares, in addition to being preferred by some as it provides a good picture of performance and profitability. however, if the value of tobin's is less than the correct one, this gives a weak value to the bank, and the reason for this may be that it is affected by many internal and external factors that some banks go through, including financial, economic, and political conditions due to which they had a direct and negative impact on their value in terms of a decrease in market value. for these banks, or a decrease in net revenues, which is reflected in a decrease in stock prices, the tobin's index is measured according to the following equation: by dividing the market value by the book value . aitvmarket value (closing price x number of shares issued ) tabv book value table (2): results of calculating the bank’s corporate value ratio in the study sample for the period (2017-2020). bank of baghdad indicator indicator equation 2017 2018 2019 2020 average the bank's enterprise value ratio = 𝒎𝒂𝒓𝒌𝒆𝒕 𝒗𝒂𝒍𝒖𝒆 𝒃𝒐𝒐𝒌 𝒗𝒂𝒍𝒖𝒆 0.13 0.63 0.066 0.07 0.2% ashur international bank the bank's enterprise value ratio = 𝒎𝒂𝒓𝒌𝒆𝒕 𝒗𝒂𝒍𝒖𝒆 𝒃𝒐𝒐𝒌 𝒗𝒂𝒍𝒖𝒆 0.2 0.12 0.14 0.15 0,15 trans-iraq bank the bank's enterprise value ratio 𝒎𝒂𝒓𝒌𝒆𝒕 𝒗𝒂𝒍𝒖𝒆 𝒃𝒐𝒐𝒌 𝒗𝒂𝒍𝒖𝒆 0.5 0.6 0.53 0.54 0.5 source: prepared by the researcher based on the annual reports of commercial banks, the study sample for the period (2017-2020). bank of baghdad: the ratio of the market value to the share price of the bank of baghdad recorded its highest increase in the year (2018), reaching 0.63% compared to other years. the market value ratio decreased in the years 2017, 2019, and 2020, as it reached (0.13%, 0.066%, 0.07). %) respectively ashur international bank: the ratio of the market value to the share price of ashur bank recorded its highest increase in the year 2017, reaching 0.2% compared to other years. the ratio of the market value decreased in 2018, 2019, 2020, as it reached (0.12%, 0.14%, 0.15%). respectively trans-iraq bank: the ratio of the market value to the share price of trans-iraq bank recorded its highest increase in the year 2018, reaching 0.6%. through table (2), it is clear to us that the highest average ratio achieved was for trans-iraq bank, as the average ratio reached (0.5)% compared to with the other commercial banks in the study sample, the average percentage reached (0.2%, 0.15%) american journal of business management, economics and banking volume 19 december, 2023 p a g e | 22 www.americanjournal.org for the banks in baghdad and the assyrian international bank. it is clear from this analysis that the above banks all achieved a banking value of less than 1, which is a percentage weak confirms that the banks are in a stage of danger if the real value of their assets is less than the market value, and this ratio affects the degree of reassurance of investors to invest in these banks. figure (1) shows us the average banking institutional value ratio for the study sample for the period (2017-2020). source: prepared by the researcher based on the financial statements of commercial banks, the study sample for the period (2017-2020) bcurrent accounts: current accounts are of great importance to banks, as increasing the rate of development in current accounts increases the bank’s ability to expand credit, allowing it to invest in them, as this bank’s cash balance increases, and thus benefits from investing these amounts and achieving additional profits as well as the wages that some banks charge for the services they provide to customers, such as opening an account, issuing checks, and issuing a debit card. the development in the accounts is measured by dividing the current accounts for the current year minus the current accounts for the previous year divided by the current accounts for the previous year . table (3): results of calculating the current accounts ratio of commercial banks in the study sample for the period (2017-2020). bank of baghdad indicator equation 2017 2018 2019 2020 average المؤشر current accounts = 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 − 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 ×100% (5)% %6.3 %5 44% %13 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% bank of baghdad ashur bank trans-iraq bank american journal of business management, economics and banking volume 19 december, 2023 p a g e | 23 www.americanjournal.org ashur international bank current accounts = 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 − 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 ×100% (29)% 119 % (25)% (24)% 10% trans-iraq bank current accounts = 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 − 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 𝑷𝒓𝒆𝒗𝒊𝒐𝒖𝒔 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒚𝒆𝒂𝒓 𝒂𝒄𝒄𝒐𝒖𝒏𝒕𝒔 ×100% (96)% 15% (23%) 29% (19)% source: prepared by the researcher based on the annual reports of commercial banks, the study sample for the period (2017-2020) bank of baghdad: the bank of baghdad’s current accounts ratio recorded its highest increase in the year (2020), reaching 44% compared to other years. the current accounts ratio decreased in 2017, 2018, and 2019, as it reached ((5), 6.3%, 5%) over straight. assyria international bank: assyria international bank’s current account ratio recorded its highest increase in the year (2018), reaching 1.19% compared to other years. the current accounts percentage decreased in 2017, 2019, and 2020, as it reached ((29)%, (25) %, (24)%) respectively. trans-iraq bank: the proportion of current accounts of trans-iraq bank recorded its highest increase in the year (2020), reaching 29% compared to other years. the proportion of current accounts decreased in 2017, 2018, 2019, as it reached ((96)%, 0.15%, (23)%), respectively, and through table (23) it becomes clear to us that the highest average was for the bank of baghdad, as the percentage for the years of study reached 13%, compared to (10%, (19)%) for the banks assyria international and trans-iraq bank, as is clear from this analysis the bank of baghdad is the best and most efficient in finance in increasing the bank’s ability to expand in granting credit and increase investments figure (2) comparison of the current account ratio of commercial banks in the study sample for the period (2017-2020). source: prepared by the researcher based on the annual reports of commercial banks, the study sample for the period (2017-2020). -8.00% -6.00% -4.00% -2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% trans-iraq bank ashur bank bank of baghdad american journal of business management, economics and banking volume 19 december, 2023 p a g e | 24 www.americanjournal.org c_ savings accounts: savings accounts are one of the most liquid investments outside of demand and cash accounts. the growth rate in savings accounts can be measured through the savings accounts for the current year minus the savings accounts for the previous year over the savings accounts for the previous year . table (4) results of calculating the savings ratio for commercial banks in the study sample for the period (2017-2020) . bank of baghdad indicator indicator equation 2017 2018 2019 2020 average savings accounts = 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠ا ×100% 49% 23% 31% 20% 31% ashur international bank savings accounts == 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠ا ×100% 26% 26% 80% 32% 41% trans-iraq bank savings accounts == 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠−𝑌𝑒𝑎𝑟 𝑆𝑎𝑣𝑖𝑛𝑔𝑠 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠ا ×100% (19) % 76% (22)% 34% 17% source: prepared by the researcher based on the annual reports of commercial banks, the study sample for the period (2017-2020). bank of baghdad: the percentage of savings accounts for the bank of baghdad recorded its highest increase in the year (2020), reaching 20% compared to other years. the percentage of savings accounts decreased in 2017, 2018, and 2019, as it reached (49%, 23%, 31%) over consecutive . assyria international bank: the percentage of savings accounts for assyria bank recorded its highest increase in the year (2020), reaching 34% compared to other years. the percentage of savings accounts decreased in the years 2017, 2018, and 2019, as it reached ((19)%, 76%,( (22%), 34%), respectively . trans-iraq bank: the proportion of savings accounts for trans-iraq bank recorded its highest increase in the year (2020), reaching 34% compared to other years. the proportion of savings accounts decreased in the years 2017, 2018, and 2019, as it reached ((19)%), 76%, (22)%), respectively, and through table (24) it is clear to us that the highest average was for assyria bank, as the average percentage reached 41% compared to the other commercial banks for the study sample, as the average percentage reached (31%, 17%) for the baghdad banks and trans-iraq bank. it is clear from this analysis that ashur bank is the best, and this indicates that the bank has taken good steps to improve this ratio and that customers have accepted savings accounts, which indicates that the bank has increased the interest rate on these accounts because the high interest rate is considered an incentive to attract the customer. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 25 www.americanjournal.org figure (3) comparison of the percentage of savings accounts of commercial banks in the study sample for the period (2017-2020). source: prepared by the researcher based on the annual reports of commercial banks, the study sample for the period (2017-2020). the second requirement: second: statistical analysis: coding the research variables as follows a: the independent variable x = bthe dependent variable ŷ = research hypothesis: this hypothesis stated that there was a significant effect of customers’ perspective on the banking liquidity of the banks in the research sample, as simple linear regression was used to test the research hypothesis, shown in the equation below: ŷ1 = 𝛼 + 𝛽𝑋 ŷ 1 = 105.842 + 0.889𝑥 sig. t impact factor 𝛽 independent variables 0.242 1.192 0.889 x 105.842 c 0.041 r square 1.421 f source: prepared by the researcher based on the spssv.26 program it is clear from the table above (7) that the coefficient of the fixed term was (0.889). if the independent variable was equal to zero, that is, in the absence of the customer perspective of the private sector banks in the research sample, then the value of bank liquidity was equal to (0.889), while the value of the calculated t was 1.192. when compared to its tabular counterpart of (2.750), we find that it is less than the tabular t, with a degree of freedom of (35). the coefficient of determination (r^2) explained a value of (0.041) of the effects that occur in (banking liquidity), and these effects are the result of on the effect of the independent variable (customers’ perspective of the banks in the research sample), while the other effects amounting to (.960) are due to other variables that were not included in this model . 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% american journal of business management, economics and banking volume 19 december, 2023 p a g e | 26 www.americanjournal.org the f test and the significance level (sig) measure the significance of the model as a whole, as it is noted that the estimated model is not significant at a significance level of more than 5%. when comparing the calculated f with its tabular counterpart, we find that it is lower, as its value reached (1.421), while the tabular f reached (2.49). as for (the significance level, sig. f) for the model as a whole represents (0.242), which is more than (5%) that the researcher assumed. accordingly, the hypothesis of the model is rejected (the alternative hypothesis) and the null hypothesis is accepted (the null hypothesis). this is not consistent with what is expected for the study. the third requirement: conclusions and recommendations : first: conclusions. 1. there is a noticeable weakness in the bank value index for all banks in the study sample, which confirms that the banks are in a stage of danger, as the real value of their assets is less than the market value, and this percentage affects the degree of reassurance of investors to invest in these banks. 2. trans-iraq bank declined compared to the bank of baghdad and assyria international in the current accounts index, which affects the bank’s ability to expand in granting credit and increase investments. 3. assyria international bank outperformed the banks of baghdad and across iraq in the indicators of savings accounts, the index of deposit accounts, and the index of the number of technological techniques directed at customer service, which indicates that the bank has taken good steps in improving these indicators and gaining customer loyalty, in addition to its advantage in the indicator of amounts spent. on customer services . third: recommendations 1. all banks in the study sample are required to identify the causes of weakness in the bank value index with the aim of making investors feel reassured when they invest their money in these banks . 2. the need for trans-iraq bank to pay attention to the current accounts index because this affects increasing the bank’s ability to expand in granting credit and increasing investments. 3. the banks of baghdad and across iraq should pay attention to the indicators of savings accounts, the indicator of deposit accounts, and the indicator of the number of technological techniques directed at customer service, because these indicators help to gain customer loyalty, in addition to the preference of these indicators in the indicator of the amounts spent on customer services. references 1. annual report of assyria international bank (2017, 2018, 2019, 2020( 2. annual report of the bank of baghdad (2017, 2018, 2019, 2020( 3. trans iraq bank annual report (2017, 2018, 2019, 2020( 4. standard specification iso/iec20000, requirements for the development, application and management of information technology services, 2012. 5. iso/iec 38500, it governance for enterprises, 2008. 6. information systems control and audit association (isaca) 2019 cobit, 2019 enabling measures framework american journal of business management, economics and banking volume 19 december, 2023 p a g e | 27 www.americanjournal.org 7. al-qassar, noha, (2019), “evaluating the technical structures of syrian banks based on the cobit5 framework,” a master’s thesis published in specialized technology management pmtm, syrian virtual university, syrian arab republic . 8. khalaf, sahar naji, ismail, khalil ibrahim, (2020), “the impact of the sustainable balanced scorecard in evaluating financial and accounting performance an applied study in the iraqi investment bank,” journal of management and economics, issue 124 . 9. muhammad, abdul hussein jassim, hussein, muhammad (2012) evaluation of financial performance indicators of commercial banks, comparative research for a sample of iraqi and emirati commercial banks for the period (2004-2009.) 10. mahmoud, saddam muhammad, hussein, ali ibrahim, hassoun, laith noman, (2012), “the accounting use of benchmarking by adopting financial ratios and the balanced scorecard as tools in evaluating the financial performance of banks,” an applied study in the mosul bank for development and investment, volume 35 , issue 113. 11. anderson, e. w., fornell, c., & rust, r. t. (1997). customer satisfaction, productivity, and profitability: differences between goods and services. marketing science, 16(2), 129-145 12. hansen & mowen, maryanna, (management accounting), 6th ed, south western, u.s.a., 2003. 13. kalender, z. t., & vayvay, ö. (2016). the fifth pillar of the balanced scorecard: sustainability. procedia-social and behavioral sciences, 235, 76-83. 14. kaplan, r. s., & norton, d. p. (1999). the balanced scorecard for public-sector organizations, balanced scorecard collative. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 77 www.americanjournal.org analysis of product development in industrial enterprises on the basis of efficient use of local resources (by kashadaryo region) izbasarov bahadir ergashovich auditor general of the university of geological sciences a b s t r a c t k e y w o r d s this article describes the dynamics of the volume of industrial products in the territory of kashkadarya region and the rate of growth of industrial production. it talks about the development of industrial enterprises, macroeconomic stability, the well-being of the population and prevention of unemployment. also, the production of products in the industrial enterprises in the territory of kashkadarya region was theoretically compared between regions. kashkadarya region analyzed the dynamics of the volume of industrial products and growth rates of industrial products production by region. the author has studied the reasons for the decrease of the efficiency index in some districts and made conclusions. economic growth, productivity, economic efficiency, labor productivity, industrial output, gross domestic product, imports, exports. introduction the positive results obtained in the socio-economic development of our country, as well as the launch of modern industrial and production facilities based on the modernization of the economy and the formation of the digital economy, as a result of which the economic potential of our country is significantly increasing, the types of products and services being created are increasing, and the quality is fundamentally improving. it shows that our economy is gaining a new meaning and essence. currently, in our country, important importance is attached to the rapid development of modern branches of industry, and in the medium-term perspective, as one of the target tasks and priorities of the state policy in the field of industrial production, "high-tech processing industries, primarily on the basis of deep processing of local raw materials resources, high value-added ready-made further modernization and diversification of the industry by moving to a qualitatively new stage aimed at rapid development of product production" [3]. continuing the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in the gross domestic product, increasing the production volume of industrial products by 1.4 times [1] is the future goal of the developing uzbekistan. the rapid development of the industrial sector based on the effective development of market relations in modernizing uzbekistan depends first of all on increasing the efficiency of the use of economic american journal of business management, economics and banking volume 24 may 2024 p a g e | 78 www.americanjournal.org resources by enterprises. our country has its own policy in the field of economy, which mainly consists of a complex system of measures aimed at the development of its modern industries and increasing the efficiency of the use of existing local resources as factors of its achievement. one of the means of determining the directions of innovative and sustainable development of industrial enterprises in the conditions of the formation of a digital economy is the identification of factors and reserves for increasing the efficiency of the use of local raw materials and ensuring their competitiveness. in the conditions of the innovative development of the economy, the sustainable economic development of industrial enterprises, as an important factor in increasing the efficiency of their activities, requires the rational use of economic resources. in this process, increasing the efficiency of industrial enterprises and ensuring the intensity of production processes, economical use of economic resources in branch enterprises, increasing labor productivity, increasing the level of intellectualization of labor processes, improving the volume and quality of industrial products, and fully satisfying the demand of the consumer market are important tasks. also, increasing the position of industrial enterprises in international markets and increasing the export of industrial products, expanding the level of localization of production is considered one of the goals of the socio-economic development of our country. literature review sustainable development of industrial enterprises of our republic and ensuring their competitive advantage in most cases depends on effective use of economic resources available in it. therefore, in the course of the research, we study the theoretical, methodological and practical aspects of the effective use of economic resources in network enterprises. today, the industrial sector is becoming a dynamic sector of the economy and has stable development trends. in the management of production processes in industrial enterprises, a certain amount of resources (fixed assets, working capital, labor resources) is spent, and product value is created. studying the specific features of the structure of industrial networks as a strategic organizational solution allows to correctly determine the system of effective use of economic resources [4]. providing industrial enterprises with the necessary resources is one of the main tasks of the management process. the concept of "resources" is one of the important categories of the formation of production factors in the economy. research scientists have given many definitions to economic resources as an economic term, taking into account various aspects of enterprise activity, and scientific approaches are based on them. in the modern economic dictionary, resources are interpreted as sources and means of ensuring production [5]. such an approach is interpreted based on the initial meaning of the word: in french, "resource" means an auxiliary tool. this approach does not represent the modern economic content of the category. according to k. mcconnell and s. brew, the concept of "economic resources" includes all natural, human and man-made resources used for the production of goods and services and divides them into the following categories: 1) material resources land, raw materials and capital; 2) human resources labor and entrepreneurial ability [6]. in the science of economic theory, a factor of production is understood as a particularly important element or object that has a decisive influence on the possibility and effectiveness of production. its american journal of business management, economics and banking volume 24 may 2024 p a g e | 79 www.americanjournal.org dictionary source is explained as follows: "factors of production are elements necessary for the production of products, goods and services" [7]. as noted by r. nureev, a.d. smirnov: "economic resources (or factors of production) are elements used for the production of economic products: in modern society, the most important of them are land, labor, capital (including its organization), entrepreneurial ability and includes information" [8]. economists m.k.bunkina, v.a.semenov emphasize the following: "a large mass of goods intended for sale are communal services in material form. four main factors interact in their production: natural resources, labor, capital and entrepreneurship [9]. a number of local and foreign researchers follow the same point of view. meanwhile, b.a. reisberg believes that factors are parameters that determine the nature and efficiency of economic processes; predetermining the quantity and quality of the created, produced product, that is, the factor is not the production resources, but the production potential of the economy [10]. he emphasizes that it is not correct to equate resources with factors of production. in our opinion, this opinion is correct, because resources are an important element of economic development, and factors involved in production and economic processes are used in them. however, b.a. raizberg emphasizes that it is not a big mistake to combine resources and factors as a single economic category, since production factors are formed directly from economic resources. we can agree with economists that "factors of production" is an economic category meaning resources already involved in the production process; therefore, "resources of production" is a broader concept than "factors of production". that is, production factors are production resources. unlike resources, they only become visible as part of an interaction. currently, the discussion about the composition of production factors is not completed. there are different approaches to their classification and, accordingly, different views. most authors adhere to the traditional classification of factors of production that make up the "triad": land, capital and labor. in this case, labor means human activity aimed at achieving some useful result. capital represents all accumulated funds necessary for the production of material goods. when we talk about land, we mean not only land, but also water, air and all other blessings that nature provides for human use. however, r. barr believes that there is currently a tendency to include land and natural factors in the capital structure. this is done for two reasons: first, land has become a product of nature and labor, it is a mixed factor like capital; secondly, the natural factor land and underground resources are not inexhaustible, their properties and capabilities cannot be considered unchanged [10]. in our opinion, one of the most complex and responsible problems facing society is the problem of "exhaustion" and "restoration" of natural resources. their unwise use, both in the conditions of the market economy and in the planned economy, led to their consistent destruction. in both cases, this is due to an underestimation of the value of such resources, and access to them is bought cheaply or provided almost for free. nature has been destroyed not only due to poor control over land and other natural resources, but also due to the lack of assessment, i.e., payment for them. any underestimation of the resource will lead to its depletion and eventual destruction. in our opinion, natural resources are one of the most important factors of economic well-being, but at the same time we must emphasize that their presence is not a condition for creating high-efficiency production. the level of economic development depends primarily on the quantity and quality of factors used in production. in our opinion, the first of them is a person, because people with the american journal of business management, economics and banking volume 24 may 2024 p a g e | 80 www.americanjournal.org necessary knowledge and labor skills are always needed for production. therefore, the first creative force is labor a purposeful activity in which people adapt natural objects to meet their needs by means of their own creation. research methodology in industrial enterprises, methods such as studying the dynamics of production volume and growth rates of industrial production, comparative economic analysis, product quality control, comparative and analytical analysis were used. analysis and results in recent years, comprehensive measures aimed at strengthening the industrial potential of our country and expanding the employment of the population at the expense of the comprehensive development of regions, the establishment of new industries in cities and regions have been adopted and implemented. as a result, the production volume of industrial products increased by 23% in the last four years, including the production of electrical engineering, textiles, leather-shoes, food, pharmaceuticals, jewelry, building materials, furniture, household goods and other consumer goods. rapidly developing industries in the regions grew more than 1.3 times [2]. the development of industrial enterprises not only ensures macroeconomic stability, but also increases the well-being of the population and leads to the development of the economy and the prevention of unemployment. the quality of the industrial product is one of the main indicators used in planning and determining the activity of the enterprise, and it is expressed by the organization of labor, the level of its equipment, the qualifications of specialists, and the state of production management.the experience of developed countries means that the development of industrial production enterprises plays an important role in the socio-economic development of countries. industry is the most important branch of the national economy, which has a decisive influence on the level of development of the productive forces of society. the network structure of the industry is the composition and share ratio of various branches and types of production included in the industry, as well as the dynamics of changes in these shares. in chapter 3, clauses 22 of the "development strategy of new uzbekistan" for 2022-2026, the issues of "...increasing the production volume of industrial products by 1.4 times by continuing the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in the gross domestic product" put forward. it can be seen that attention is being paid to increasing the volume of industrial products produced in the regions. in the analysis according to the results of the regional strategies for the development of industrial production, scientific literature focuses on the cluster model, as well as modifications such as import substitution and interregional. the purpose of the regional analysis of industrial production is to determine strategies for the development of the industrial complex of the region that is resistant to external shocks. various theoretical concepts of industrial production enterprises are analyzed with the wide use of methods such as comparative analysis, regional planning document analysis, correlational analysis, grouping method, systematization of research results.the main tasks of comparative economic analysis include: -regular determination of the levels of performance of the organization's strategic and tactical development plan indicators for reporting periods; american journal of business management, economics and banking volume 24 may 2024 p a g e | 81 www.americanjournal.org -determine and calculate the factors affecting the deviation of the actual values of each indicator from the specified parameters. it is necessary to pay attention to those that have a negative impact on performance indicators, and for management purposes, to evaluate the impact of positive factors; -in the analytical control system, the data obtained as a result of the analysis must be presented in time; development of concrete measures aimed at optimization, quick elimination or localization of the negative effects of identified shortcomings (lost profit, unused reserves); -making reasonable and management decisions in a timely manner. based on this point of view, it is important to analyze the dynamics of the volume of industrial products produced per capita in the regions of kashkadarya region, to determine the priority tasks and growth points in the regions of kashkadarya region. table 1 dynamics of the volume of industrial products by regions of kashkadarya region (billion soums) no areas years in 2022 compared to 2018. % 2018 2019 2020 2021 2022 1. qarshi s. 1956,9 2475,3 2948,5 3233,1 3480,4 180,0 2. guzor 2990,4 4504,5 2700,0 3398,2 3506,4 120,0 3. dehqonobod 397,3 543,6 581,9 693,0 1356,5 340,0 4. qamashi 313,1 270,0 553,9 557,5 657,6 210,0 5. qarshi 696,9 739,5 627,7 1047,6 1745,5 250,0 6. kasbi 298,2 205,5 391,8 1164,7 1664,7 560,0 7. kitob 240,3 302,1 333,1 335,2 685,4 290,0 8. koson 631,0 647,2 768,9 794,9 939,8 150,0 9. kukdala 126,2 0,0 10. mirishkor 163,9 250,0 277,7 318,8 599,9 370,0 11. muborak 4237,6 6483,4 677,9 619,0 628,5 10,0 12. nishon 1429,5 2469,0 2996,3 4564,2 5222,4 370,0 13. chiroqchi 246,4 308,5 367,5 432,6 542,5 220,0 14. shahrisabz s. 343,6 295,5 328,6 328,3 427,1 120,0 15. shahrisabz 294,7 523,2 424,8 499,7 441,1 150,0 16. yakkabog 289,6 342,7 633,8 784,8 790,6 270,0 total 14529,5 20360,1 14612,3 18771,9 22814,7 160,0 table 1 shows the volume dynamics of industrial products produced in the regions of kashkadarya region and the growth dynamics of the volume of industrial products in terms of their nominal value in 2018-2022. according to the data in the table, we can see that this indicator has been growing over the years in kashkadarya region. 14,529.5 billion in the region in 2018. if the industrial product is american journal of business management, economics and banking volume 24 may 2024 p a g e | 82 www.americanjournal.org produced, by 2022 this indicator will be 22,814.7 billion soums. amounted to soum, that is, it increased by 1.5 times. in 2022, the production of industrial products was relatively high in nishan district (5222.4 billion soums), guzor district (3506.4 billion soums), karshi city (3480.0 billion soums). low production qamashi (657.6 billion soums), kitab (685.4 billion soums), koson (939.8 billion soums), mirishkor (599.9 billion soums), mubarak (628.5 billion soums) . soums), chirakchi (542.5 billion soums), shahrisabz (427.1 billion soums), yakkabog' (790.6 billion soums) cities. in the rest of the districts, these indicators are average, 1745-1356 billion. was in the range of soums. achieving economic growth in regional industrial enterprises, mainly at the expense of increasing productivity indicators, will yield higher and higher results over time. in turn, the growth and calculation of the importance of productivity indicators in processing and other industrial sectors in the regions of the region increases its relevance in terms of the increase in the volume of products. because the influence of intensive factors on economic efficiency in the production process has a tendency to increase. here it should be noted that the reason for the decrease in the efficiency index in some districts of kashkadarya region is not due to the decrease in the production of industrial products, but the fact that the production of industrial products in the region lags behind other regions. can be explained with this indicates that there are actual problems in the location and development of the industrial complex in the regions. conclusion according to the analysis, we can see whether the dynamics of the volume of industrial products by regions of kashkadarya region and the growth rates of industrial products are decreasing or increasing over the years. according to the indicators of the region's industrial sector, in 2019, the growth rate of production on the territory of the republic was at a low level, but by 2021, it will be among the top. in 2020, the dynamics of the volume of industrial products by regional regions was low, but by 2022, this indicator was high. taking this into account, it is necessary to take into account the following points in order to increase the efficiency in the branches of the industrial complex, and ultimately to raise the interregional position of the regions in industrial production. today, the share of small business and private entrepreneurship in the gnp of the region is 69.0 percent, 78.5 percent in employment, and 26.3 percent in industry. based on this, it can be said that increasing the share of small business and private entrepreneurship in regional industrial production is one of the urgent tasks. this requires the improvement of the procedure for giving privileges and preferences to newly established small business entities in the industrial network. it is appropriate to use the mentioned methodological approaches in determining the strategy of proportional development and effective placement of the industry of the regions, increasing the production capacity of the industry. it means that in the republic of uzbekistan, it is necessary to take into account the existing opportunities and factors affecting the increase of production potential in the effective use of industrial production potential. accordingly, the use of the proposed model in determining the target projects and strategies aimed at the development of industry in the republic will increase the possibilities of achieving proportional development of the industry in the regions, and will bring about the targeted use of production forces based on the characteristics of the regions. american journal of business management, economics and banking volume 24 may 2024 p a g e | 83 www.americanjournal.org references 1. decree of the president of the republic of uzbekistan dated january 28, 2022 "development strategy of new uzbekistan for 2022-2026" no. pf-60. 2. decree of the president of the republic of uzbekistan dated june 9, 2021 no. pf-6244 "on additional measures to increase the industrial potential of the regions". 3. decree of the president of the republic of uzbekistan dated february 7, 2017 no. pf-4947 "on the strategy of actions for the further development of the republic of uzbekistan". 4. qosimov a. a. statistical forecasts of the economic potential of industry of the surkhandarya region and the prospects of its further development //the american journal of management and economics innovations. – 2020. – т. 2. – №. 11. – с. 1-15. 5. райзберг б.а., лозовский л.ш., стародубцева е.б. современный экономический словарь 2-е изд., испр. м.: инфра-м, 1999. 478 с. 6. макконнелл к.р., брю с. л. экономикс: принципы, проблемы и политика: пер. с англ. в 2 т. м.: республика. т. 1. 1992. 339 с.; т. 2 1992. 400 с. 7. большой экономический словарь / под ред. а.н. азрилияна. 2-е изд. доп. и пер. м.: институт новой экономики, 1997. 864 с. – с. 776. 8. нуреев р.м. микроэкономика: учебник для вузов. м.: норма: инфра м., 1999. 440 с. 9. бункина м.к. национальная экономика: учебн. пособие. м.: дело, 1997. 272 с. 10. курс экономики: учебник. 3-е изд., доп. / под. б.а. райзберга. м.: инфра м, 2001. – 716 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 225 www.americanjournal.org healing chamomile essential oils chorshanbiyev sherali termiz agrotexnologiyalar va innovatsion rivojlanish instituti, (v.f.n.) nosirjonov ibrohimjon termiz davlat pedagogika instituti talabasi khudoyberdi djumaev (b.f.d.p) termiz davlat pedagogika instituti oʻqituvchisi +998914950812 e-mail: nosirjonovibrohimjon0@gmail.com a b s t r a c t k e y w o r d s medicinal chamomile (matricaria chamomilla) belongs to the asteraceae family and has a place in the pharmaceutical, cosmetic, perfumery, personal care and beverage industries. due to the high value of medicinal chamomile essential oil in the world market, it is often cultivated for commercial purposes. asteraceae family, chamomile, pharmaceuticals, cosmetics, perfumery, terpenoids, flavonoids. introduction medicinal chamomile a butterfly grass belonging to the family asteraceae. the plant has a smooth foundation and small roots up to 20-92 cm in height. the flowers consist of white gulbargs and conical yellow center. molasses can bloom in spring and autumn, but in most cases it blooms from the end of spring to the beginning of summer. learn from jesus ' example of watchfulness, 2 / 15 matricaria recutita or chamomilla recutita) moth is one of the most important medicinal hereds. it is possible to get a lot of natural and very valuable products from it. it is widely grown commercially for essential oil, which is mainly present in their flowers. medicinal chamomile essential oil is used in various industries, e.g. pharmaceuticals, cosmetics, perfumes, personal care and beverage industry. the moss flower also contains valuable components such as terpenoids, flavonoids, and other compounds with registered pharmacological activity. in addition, dried medicinal chamomile flowers are used to make tea, as well as various products (e.g. skin creams). finally, the medicinal chamomile is grown as a scenic plant and is added to the variety of flowers. american journal of business management, economics and banking volume 22 march 2024 p a g e | 226 www.americanjournal.org russia, poland, hungary, slovakia, the usa, canada, australia and new zealand are major essential oil producers of healing testicle. the average yield of medicinal oil flowers is 3.5 tons per hectare (3,500 kg = 9490.68$). the average yield of dried medicinal oil flowers is 0.9 tons per hectare (900 kg = 2440.32$). the average yield of medicinal moss essential oils is from 0.3 to 0.5% of the dry flower. thus, from 2.5 to 3.5 kg of essential oils per hectare can be distinguished. references 1. o. pratov ,q.jumayev, high plant sestimatics. tashkent. 2003 2. s.s.saxobidinov. systematic plants. tashkent 1996 3. e.s. sulaymonov, plant identifier for training field practice. -t.: 2015.-217 b. 4.m.nabiyev ''healing drugs' tashkent 1980 5.k.kholiqov. medicinal plants in southern uzbekistan 1992 6. first year of uzbekistan tashkent 2000. 7.harkevich d.a.,pharmacology' medicine.2005 8. internet information. www.ziyonet.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 31 www.americanjournal.org logarithmic functions, equations and inequalities abdullayev nurbek shuhrat o'g'li ro'ziqulov sa'dulla egamnazar o'g'li tursunov zohidjon tohirjon ògli a b s t r a c t k e y w o r d s this article provides information on logarithmic functions, equations, and solutions to inequalities. logarithmic functions, equations, inequalities, graph, function, interval positive. introduction logarithmic function. let a > 0, a ≠ 1. given that the number n is a logarithm on the basis a, the number a is said to be the degree indicator that needs to be raised to form the number n, and is denoted by logan. by definition, ax = n (a > 0, a 1 1) is the x solution of the equation x = logan number. the action of finding the logarithm of an expression is called logarithm of the same expression, while finding the same expression itself according to a given logarithm is called potentiation. when the expression x = logan is potentiated, a recursive n = ax is formed. with a > 0, a ≠ 1, and n > 0, the equations ax = n and logan = x are of equal strength. thus we have a function y = logax (a > 0, a ≠ 1) that is continuous and monotonic in its field of detection. this function: a basis is called a logarithmic function. the y = logax function is the inverse function to the y = ax function. its graph is generated by a symmetric substitution of the function graph y = ax with respect to the straight line y = x. since the logarithmic function is an inverse function to the exponential function, its properties can be generated using the exponential function properties. in particular, the defining domain of the function f (x) = ax was d(f ) = {-∞< x<+∞}, and the domain of change was e(f ) = {0 < y<+∞}. accordingly, for a logax function f(x) = d(f) = {0 < x<+∞}, e(f ) = {-∞ < y<+∞}. at a > 1, the logax function (0; +∞) is continuous in light, increasing, negative at 0 < x < 1, positive at x > 1, increasing from -∞ to+∞. similarly at 0 < a < 1 the function is continuous at (0;+∞), decreasing from +∞ to 0, taking positive values at 0 < x < 1 range, and negative values at x > 1. the ordinate axis is a vertical asymptote for the logax function. american journal of business management, economics and banking volume 32 january 2025 p a g e | 32 www.americanjournal.org let's consider the following examples: 1.to solve 2x=4, we write 2x=22 and find the solution x=2. 2.let 2x = 5. it is difficult to describe 5 on the right side in the form of a degree with a base of 2. but it is known to us that there is a real root of this equation. to solve such equations, the concept of logarithm is introduced. in general, the root of the equation ax=b (a>0, a≠1, b>0) is called the logarithm of the number b according to base a. description: the logarithm of a number b according to base a is said to be the degree indicator that a number will need to be raised to form a number b, and is defined as logab. ax=equation b (since x=logab aloga b / b (1) < br > can be written in the form. (1) the formula is called the basic logarithmic axiom, where a>0a≠1vab>0 2) examples: 1) log2162) find the value of log50,04. 3) solution: 1) since 16=24, it is necessary to raise the two to the fourth level to form 16, which means log216 = 4. 4) 2)it is known that 0,04% of the volume is 5%. therefore log50, 04=-2 5) examples: 3. we find log4 x to satisfy the equations 4) log x 4 to satisfy. 6) solution: using the basic logarithmic axiom: 7) 8) xlogx 4 4, ya`ni x 34 4, x 4 34 1 we find the s. 9) 3 256 for any number a>0, b>0, a 1 1, b 1 1, x>0, y>0, and the real desired numbers n and m, the following equalities are satisfied: 1) log a 1 0, 2) log a a 1, 3) log a (xy) log a x log a y, x 4) log a log a x log a y, y 5) log a x n nlog a x, 1 6) log am x m log a x, 7) log am xn mn log a x, logb x , 8) log a x logb a 1 9) log a b , logb a these equalities arise from the properties of the exponential function. we will prove some of these. using logarithmic axiom: x aloga x, y aloga y we find the. american journal of business management, economics and banking volume 32 january 2025 p a g e | 33 www.americanjournal.org whether or not we multiply these equalities by terms xy aloga x *aloga y aloga x loga y, x aloga x :aloga y aloga x loga y, is formed. y from these equalities come the equalities 3) and 4) according to the definition of the logarithm. x to alo x if we increase both sides of the mirror to n-level, x to alo x yields and from this we find loga x to nlo. to prove that the formula for the transition from one-base logarithm to another-base logarithm is 8) in private 9), we proceed as follows: loga x gömək b gömək from both sides of the resulting expression x=ab we find a logarithm according to base b: b blogb a b logb x logb x logb a logb a putting the value of b on the left side, we obtain the formula 8). if we say x=b from this formula, we get the formula 9). 5example. if log25 a va log23 b bo`lsa, log23000 ni a va b express through? solution: log 2 3000 log 2 (3 53 23) log 2 3 3log 2 5 3log 2 2 b 3a 3 6-xample. if log 3 x log 3 7 2log 3 5 3log 3 2 bo`lsa, x find. 2log 3 2 3 log 3 72 53 2 log 3 1758 , solution: log 3 x log 3 7 log 3 5 from this x 21,875 decimal and natural logarithms. definition 1. the basis a=10 the logarithms that are decimal logarithms are called and lgx is expressed through, i.e. log10x=lgx 7example.lg100=lg102=2 8: lg0,01=lg10-2=-2 2description. a natural logarithm is said to be a logarithm whose basis is a number e, and lnx is defined by, i.e. logex=lnx, e the number is an irrational number, e=2,7182818284… a in practice e≈2,7 can be taken as. between decimal and natural logarithms lg x ln x 0,434294ln x and 1 ln x lg x 2,302551lg x there is a link. a in practice lg x 0,4ln x and lg e ln x 2,3lg x equalities can be used. 9example. ln100, lge2 calculate. ln100 2,3 lg100 2,3 2 4,6. solution: 2 lg e 2lg e 2 0,4ln e 0,8. american journal of business management, economics and banking volume 32 january 2025 p a g e | 34 www.americanjournal.org references 1. fundamentals of algebra and analysis. manual for academic lyceums (r.x.vafoev, j.x.khusanov et al. t.: teacher, 2003-368 p. 2.fundamentals of algebra and mathematical analysis. i k. guide to academic lyceums (a.abdukhamidov, a.nasimov et al. t.: teacher, 2007. 462 b. 3.math. i, part ii. a manual for vocational colleges (a.melikulov et al. t.: 2003. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 100 | p a g e empowering communities: small business and entrepreneurship in driving employment and income growth within the service sector gulbakhor sultonova assistant, department of economics, fergana polytechnic institute, fergana, uzbekistan e-mail: sultonova.gulbaxor@ferpi.uz a b s t r a c t k e y w o r d s this study delves into the pivotal role played by small businesses and private entrepreneurship within the service sector, focusing on their impact on employment generation and income augmentation for communities. investigating the dynamic landscape of service-oriented ventures, this research explores the multifaceted contributions of small enterprises and entrepreneurial endeavours in fostering job creation and elevating the financial well-being of the populace. through an analysis of case studies, economic models, and empirical data, this study aims to shed light on the significance of these entities in catalyzing economic growth, empowering communities, and shaping a sustainable framework for income augmentation. small businesses, private entrepreneurship, service sector, employment generation, income growth, community development, economic empowerment, job creation, entrepreneurial ventures, economic impact, service industry, microenterprises, income enhancement, employment opportunities, socioeconomic growth. introduction improving the efficiency of small business and private business entities in the field of service in the context of modernization of the economy and improvement of the population's well-being is one of the important issues facing the country's economy today [1-3]. in particular, it is very important to determine the perspective of improving the efficiency of small business and private business entities in the service sector, which is recognized as the main driving force of ownership, to improve their organizational and economic mechanisms, and to develop scientifically based proposals and practical recommendations in this field. because of the improvement of market relations, further liberalization of the economy, the development of small business and private entrepreneurship activities, as a result of which the country's budget stability, gross domestic product (gdp) production, and employment of the population are being solved. as a result of the creation of certain conditions for the development of this sector, the determination of tax, customs and other payment benefits, the effective use of bank loans, the number of small american journal of business management, economics and banking volume 19 december, 2023 p a g e | 101 www.americanjournal.org businesses and private enterprises is increasing in a short period. but there are some problems in this regard. the main reason for this is the lack of creation of an economic mechanism for small business and private entrepreneurship that meets today's requirements, the use of economic tools in their activities, economic relations with other business entities, and the lack of improvement of relations with state authorities [4-7]. literature review there are several scientific works of domestic and foreign economists dedicated to the development of small business and private entrepreneurship and the criteria for evaluating their activity. theoretical foundations and social importance of entrepreneurial activity a. smith, j. b. say, d. m. keynes, y. schumpeter, a. v. chayanov [8], k.a.raitsky [9], i.a.juravleva [10], a.p.kiselev [11] and other economists studied. they contributed to the development of the theory of small business and private entrepreneurship. in the years after independence, several scientific researches were carried out on this topic by the scientists of our country. in particular, s.s. gulomov5, yo.abdullaev6, m.s. kasimova [12], b.khodiev [13], a.abdullaev [14], d.suyunov [15], m.q.pardaev [16], s.k. salaev [17], b.a. abdukarimov [18], g.s. sevlikyants, and e.n. khadjaev [19] research in this regard should be highlighted. however, the result of the analysis of scientific literature showed that the issues of improving the efficiency of small business and private business entities in the service sector have not been sufficiently researched. materials and methods significant work is being done in the republic to ensure employment and increase the income of the population through the development of small businesses and private entrepreneurship in the service sector. if the population is employed, it means that they have the opportunity to earn and increase it. all legal grounds and conditions have been created for this in our country. the law of the republic of uzbekistan "on guarantees of freedom of small business and private entrepreneurship" clearly defines the obligations to increase the income of the population. in it, "small businesses and private entrepreneurs are obliged to make timely calculations with employees engaged based on recruitment"it is said [20]. as a result of increasing the convenience of the business and investment environment for business entities, reducing the tax burden on enterprises, and the opportunities created for the development of family businesses and private estates, positive indicators that have not been observed for several years are recorded in the labour market this year. the employment rate of the population increased and the unemployment rate decreased by 0.4 per cent compared to the beginning of 2019 and reached 8.9 per cent as of october 1 of this year. the number of officially employed population increased by 5.7% or 308 thousand people compared to the corresponding period of 2018 and reached 5.7 million people. the number of economically inactive populations decreased by 200,000 to 4.0 million people who emphasized that [21]. the decision of the president of the republic of uzbekistan sh.m. mirziyoev "on measures aimed at attracting poor and unemployed people to entrepreneurship, increasing their labour activity and vocational training" was adopted. based on this decision, in the address of the president of the republic of uzbekistan to the oliy majlis, poverty reduction was identified as one of the most american journal of business management, economics and banking volume 19 december, 2023 p a g e | 102 www.americanjournal.org important tasks. according to estimates, 12-15 per cent of the republic's population, or 4-5 million people, live in poverty." stated that [21]. ensuring the implementation of the decree of the president of the republic of uzbekistan dated march 2, 2020, no. pf-5953 "on the implementation of the strategy of actions on the five priority directions of the development of the republic of uzbekistan in 2017-2021 in the "year of development of science, enlightenment and digital economy", as well as the implementation of the poor and attracting the unemployed population, especially women, young people to entrepreneurship and increasing their labour activity, strengthening citizens' confidence that they can change their own and their family's living conditions, income and level of education. in the report to the oliy majlis dated december 28, 2018, the amount of wages, pensions, stipends and social allowances has been significantly increased compared to previous years to improve the well-being of the population. in particular, for the first time in the last 10 years, the salary of teaching staff was increased by 50% [22]. "every family is an entrepreneur", within the framework of programs such as "youth our future", about 2 trillion soums were allocated, and more than 2,600 business projects were implemented locally. particular attention was paid to the rapid development, promotion and support of small business and private entrepreneurship, which play an increasingly important role in ensuring economic growth, creating new jobs, solving the employment problem, and increasing the income and well-being of the population. the first president of the republic of uzbekistan, i.a. karimov, is paying special attention to the measures related to the simplification of the authorization process and the optimization of payments. in particular, in 2009, efforts to reduce expenses of entrepreneurs related to the organization of their work were continued, including: − the cost of obtaining architectural-planning task sets 4 times; − examination of project-estimate documents 2.5 times; − the cost of registration of cadastral documents was reduced by 2 times. the effectiveness of small business and private entrepreneurship is increasing, significant work is being done to ensure employment of the population. new small business and private business entities are opening in the service sector by attracting foreign investments and local commercial banks. the installation of modern equipment serves to increase the quality of consumer products and fill the domestic market. the development of small business and private entrepreneurship in the service sector leads to an increase in population employment. is bringing already, the most optimal way to provide employment and increase the income of the population, which is considered one of the current problems, is the development of small business and private entrepreneurship. it should be noted that the share of small business and private entrepreneurship in the gdp of the samarkand region is growing faster than in our country. in our opinion, the main reason for this is the increase in the number of subjects in this field as a result of the increased attention of the regional leadership and official organizations to this field, which led to a sharp increase in the volume of produced products and services. in our opinion, the current situation can be assessed as positive in all respects [23-27]. the increase of jobs in the republic serves not only to ensure the employment of the population and to increase the employment of the population but also to develop our economy. in this regard, the american journal of business management, economics and banking volume 19 december, 2023 p a g e | 103 www.americanjournal.org employment of the population in small business and private entrepreneurship is increasing year by year. the regional program on permanent jobs created in the projects implemented within the framework of the decision pq-4227 of the president of the republic of uzbekistan dated march 5, 2019 "on the provision of employment and creation of new jobs in 2019" was approved [28-31]. in this decision, the tasks to be performed by the ministry, agencies, state and economic management bodies according to the defined parameters for ensuring the implementation of the program are specified. according to the approved program, 39,952 jobs were to be created in 2019, of which 45,114 jobs were actually created in january-december (39,952 according to the program) and 112.9% of the program was completed. from this: − 4177 at the expense of large projects (economic management bodies); − 14,039 at the expense of small projects (local projects, without taking loans at the expense of own funds); − 3070 at the expense of non-functioning, inefficiently used buildings and unfinished objects; − 709 at the expense of social and other objects that are started from the budget funds; − 1,122 at the expense of social objects that are launched based on public-private partnerships; − 3082 at the expense of craft development; − 18,915 jobs created at the expense of lending; from this: − 15,447 from the funds of commercial banks; − 944 at the expense of the state employment assistance fund; − 985 from the funds of regional funds for the promotion of new jobs; − 743 from the funds of the fund for the support of farmers, peasant households and homestead landowners; − 796 new jobs were created at the expense of the "yoshlar-kelajagmiz" fund. the total population in samarkand region in 2019 is 3827.9, of which labor resources is 2122.1, the economically active population is 1617.6, economically inactive population is 504.4, employed population is 1468.7, of which; 503.7 jobs in the official sector of the economy, 965.0 jobs in the informal sector of the economy, 343.1 people who went to work outside the republic, 148.8 people in need of employment, the unemployment rate is 9.2%. hiring for january 1, 2019. 157.3 people in need of accommodation made up 9.7%, compared to last year, people in need of work decreased by 8.5 people or 5%. in january-december of this year, 58,594 unemployed citizens applied to the city and district employment assistance centres, of which 32,505 (55.4%) were employed in various sectors of the national economy. the study and analysis of statistical data of the general directorate of labor and social protection of the population showed that in 2018, a total of 85,700 new jobs were created in the districts and cities of the region. 77,800 of these jobs were created in rural areas. in the opinion of the author, it is necessary to implement the following for the further development of small business and private business entities and to ensure the employment of the population and increase their income: american journal of business management, economics and banking volume 19 december, 2023 p a g e | 104 www.americanjournal.org − taking into account the fact that the majority of the population of the region lives in rural areas and the position of the region in the republic's agriculture, the establishment of mini-shops for the processing of agricultural products; − introduction of a rational logistics system to improve the process of selling their products through wholesale and retail directly for small businesses and private enterprises; − to ensure the competitiveness of the products of small businesses and private enterprises, to assist them in solving the issues of continuous electricity and water supply by local governments in an appropriate manner; − establishment of joint ventures within the scope of small business and private entrepreneurship entities, attracting foreign investments, in regions with opportunities for processing agricultural products, and production of industrial and construction materials at the expense of local raw materials. − in rural districts, except settlements with a population of more than 5,000, individual entrepreneurs who have organized hairdressing services, tailoring services on individual orders, shoe repair services, as well as public baths, all types of businesses until july 1, 2023, are exempt from paying taxes; − individual entrepreneurs are exempted from paying the fixed tax paid to each hired employee; − family business entities without establishing a legal entity may hire up to 3 permanent employees, and enter into employment contracts with them, as well as other close relatives of working age, including spouses of children and grandchildren of working age, brothers and sisters of working age. has the right to involve brothers and sisters, and their spouses as participants in a family business without establishing a legal entity; − following paragraph 6 of this decision, individual entrepreneurs who received microcredit for the first time are exempted from paying a fixed tax within 6 months from the date of receiving it; − self-employed persons pay a fixed monthly tax on goods transportation services at the rate of 2 times the minimum wage in road transport with a load of more than 3 tons. conclusions the importance of the role of small business and private entrepreneurship in the development of the economy and in providing employment and increasing the income of the population was substantiated. it was proved that the development process of entrepreneurship in uzbekistan consists of 4 stages. criteria, indicators and ways of determining the effectiveness of small business and private entrepreneurship were recommended. factors influencing the improvement of the efficiency of small business and private entrepreneurship, and their classification and evaluation methods were developed. the objective necessity and importance of the organization of free economic zones in the development and improvement of efficiency of small business and private entrepreneurship was revealed. the directions for using the possibilities of the city of karshi were based on this. the main directions of increasing the efficiency of small business and private entrepreneurship were shown. these include: − taking into account the fact that the majority of the population of the region lives in rural areas and the place of the region in the republic's agriculture, organization of mini-workshops for the processing of agricultural products; american journal of business management, economics and banking volume 19 december, 2023 p a g e | 105 www.americanjournal.org − introduction of a rational logistics system for direct business to improve the process of selling its products through wholesale and retail trade; − optimization of current taxes, determination of benefits, in particular, determination of their differentiated amounts based on the real capabilities of cities and villages; − to make it possible to ensure the competitiveness of the products of business entities, help them to solve the issues of uninterrupted electricity and water supply by local governments in an appropriate manner; − establishment of joint ventures within the framework of small business and private entrepreneurship entities, attracting foreign investments, in districts with opportunities for processing agricultural products, production of industrial and construction materials at the expense of local raw materials; − development of various historical and traditional types of small business and private entrepreneurship in urban and rural areas and acceleration of the provision of competitive services based on effective and economical use of existing economic resources; − taking into account that 47% of the population of the republic is made up of young people, focusing at the government level on expanding the types of services that meet their demands and needs (computer, internet, photo and beauty salons, hairdressing salons, etc.); − it is possible to explain the guarantees and benefits established by law to entrepreneurs and organize meetings, educational seminars, and training courses to further improve their economic and legal knowledge. references 1. smith a. issledovanie o prirode i prichinax richatka narodov. m.: "sots.ekgiz", 1962. 332 p.; 2. keynes dj. obshaya theory zanyatosti protsenta i deneg. m.: "progress", 1948. 240 p.; 3. schumpeter y. theory of economic development. m.: "mmsl", 1982.-159 p.; 4. a. v. chayanov. o razmere semi i krestyanskogo domokhozyastva. // vestnik statistician. 1991, no. 7, 47 p. 5. raitsky k.a. economic enterprise. uchebnik.m.: ivts "marketing". 2003. 683 p. 6. zhuravleva i.a. osnovnme napravleniya razvitiya malogo business and sphere uslug i ix ekonomicheskoe obsnovanie, dissertatsiya na soiskanie uchenoy stepi kandidaple ekonomicheskikh nauk, belgorod-2005. 7. kiselev a.p. theory and practice of modern business. "libra", 1995. 246 p. 8. ghulomov s.s. entrepreneurship and small business. t.: chief editorial office of "sharq" publishing-printing joint-stock company. 2002. 365 p. 9. abdullaev yo., karimov f. basics of small business and entrepreneurship. 100 questions and 100 answers (part 1), t."mehnat", 2000.347 p. 10. kasimova m.s., khodiev b.yu., samadov a.n., mukhitdinova u.s. small business management. t: "teacher", 2003. 239 p. 11. khodiev b., berkinov b., kravchenko a. business valuation. t.: "economy-finance" 2007.254 p. 12. abdullaev a., sotvoldiev a., orinboev i, abdullaev s. and others. small business and private entrepreneurship: organization, planning, management. t: "science and technology", 2005. 243 p., american journal of business management, economics and banking volume 19 december, 2023 p a g e | 106 www.americanjournal.org 13. abdullaev a., muftaydinov q., aybeshov kh. small business management. t.: "finance" 2003. 191 p. 14. suyunov d.kh. directions for organization of management in small and medium-sized business entities and increasing its effectiveness: thesis abstract written for the degree of candidate of economic sciences. t., tdiu, 2004. 23 p. 15. pardaev m.q., israilov j.i. theoretical and methodological problems of the analysis of the activities of private enterprises, (monograph), t: "fan and technology", 2007. 163 p. 16. salaev s.k. modeling and forecasting small business development trends: a dissertation abstract written for the doctor of economics degree. t.: tdiu 2008. 49 p. 17. abdukarimov b.a. domestic trade economy. t.: "science and technology", 2007. 386 p. 18. sevlikyants g.s., khodjaev e.n. predprinimateltstvo v republic of uzbekistan. -t.: izd. narodnogo naslediya im. a. kadmri mgp "creation", 1993. 159 p. 19. bulletin of the oliy majlis of the republic of uzbekistan volume: 2000, no. 5-6, article 9. 20. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis. "word of the people", 2020. january 25, -b. 1. 21. resolution of the president of the republic of uzbekistan sh.m. mirziyoev "on measures aimed at attracting poor and unemployed people to entrepreneurship, increasing their labor activity and vocational training". 22. jaafar, m., & rasoolimanesh, s. m. (2015). tourism growth and entrepreneurship: empirical analysis of development of rural highlands. tourism management perspectives, 14, 17-24. 23. nomnga, v. j. (2021). empowering rural women in the hospitality industry through small, medium and micro enterprises. international journal of innovation, creativity and change, 15(8), 1056-1067. 24. adxamovna, b. g. (2022). problems of improving the organizational and economic mechanism of management of food industry enterprises. periodica journal of modern philosophy, social sciences and humanities, 13, 139-145. 25. baykuzieva, g. a. (2020). problems of development of fruit and vegetable industry in fergana region and their solutions. international scientific journal theoretical & applied science, 10(90), 78-82. 26. ахунова, ш. н. (2020). экобизнес. экономика и социум, (2), 104-107. 27. ахунова, ш. н., & абдуллаева, б. (2015). динамика и перспективы развития частного предпринимательства в узбекистане. журнал научных публикаций аспирантов и докторантов, (5), 23-25. 28. ахунова, ш. н. (2015). к проблемам оптимизации налоговой нагрузки субъектов предпринимательства. молодой ученый, (2), 246-248. 29. кундузова, к. и., & ахунова, ш. н. (2019). пути развития дехканских хозяйств и повышения их эффективности. известия ошского технологического университета, (3), 273-277. 30. ахунова, ш. н., & аширалиев, ф. (2015). к вопросам развития строительной индустрии в сельской местности узбекистана. молодой ученый, (6), 375-377. 31. ахунова, ш. н., & толибов, и. ш. у. (2019). к проблеме повышения эффективности привлечения инвестиций в экономику узбекистана. достижения науки и образования, (7 (48)), 18-22. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 82 www.americanjournal.org current development trends in uzbekistan's foreign trade kamolov uygun tulkinovich bukhara university of innovation a b s t r a c t k e y w o r d s uzbekistan's foreign trade has undergone significant transformations in recent years, influenced by economic reforms, international trade agreements, and geopolitical factors. this paper analyzes the current development of uzbekistan’s foreign trade, highlighting trends in exports and imports, trade balance dynamics, and key trading partners. the study employs statistical data and policy analysis to assess the impact of government measures on trade liberalization and economic diversification. additionally, challenges such as tariff barriers, logistics, and global economic fluctuations are discussed. the findings suggest that while uzbekistan has made considerable progress in expanding its foreign trade, further structural improvements are required to enhance global competitiveness. uzbekistan, foreign trade, trade balance, economic development, international trade, export, import, trade policy. introduction uzbekistan's foreign trade landscape has experienced substantial transformations in recent years, driven by comprehensive economic reforms, strategic policy shifts, and evolving international partnerships. in 2024, the nation's foreign trade turnover reached $65.9 billion, marking a 3.8% increase from the previous year. this growth encompassed an 8.4% rise in exports, totaling $26.95 billion, and a modest 0.8% uptick in imports, amounting to $38.99 billion [5]. a pivotal aspect of uzbekistan's trade dynamics is its relationship with key global partners. china and russia have solidified their positions as the country's leading trading allies, accounting for 18.9% and 17.6% of the total trade turnover, respectively. kazakhstan follows as a significant partner, contributing 6.5% to the trade volume [5]. the trade balance, however, presents a nuanced picture. as of november 2024, uzbekistan recorded a trade deficit of $1.44 billion, a notable increase from the $823.4 million deficit observed in the previous month. this shift underscores the challenges the nation faces in balancing its import and export activities[6]. the government's commitment to economic liberalization has been instrumental in reshaping the trade environment. initiatives such as the liberalization of the foreign exchange rate, removal of price controls, and the establishment of new energy markets have been pivotal. these reforms aim to american journal of business management, economics and banking volume 33 february 2025 p a g e | 83 www.americanjournal.org decrease the state's role in the economy, foster private sector growth, and attract foreign investment [7]. despite these advancements, challenges persist. the trade deficit highlights the need for further diversification of export commodities and the development of value-added industries. additionally, external factors such as global economic fluctuations and geopolitical tensions pose risks to uzbekistan's trade stability. looking ahead, uzbekistan's strategic initiatives, including its bid to join the world trade organization by 2026, reflect its dedication to integrating more deeply into the global economy. this move is anticipated to enhance trade relations, reduce protectionist barriers, and promote sustainable economic growth [5]. in conclusion, while uzbekistan has made commendable strides in advancing its foreign trade, ongoing efforts to implement structural reforms and mitigate external risks will be crucial in achieving longterm economic resilience and prosperity. literature analysis the scholarly examination of uzbekistan's foreign trade development reveals a multifaceted landscape shaped by historical policies, economic reforms, and regional integration efforts. historically, uzbekistan adopted protectionist trade policies, emphasizing import substitution and maintaining stringent controls over foreign exchange and trade regimes. this approach led to a decline in both imports and exports from approximately $4.5 billion in 1996 to less than $3 billion in 2002. however, stabilization and currency liberalization efforts in 2003 facilitated a significant resurgence in trade activities, with exports more than doubling to $15.5 billion by 2011, while imports increased to $6.5 billion, reflecting the government's import substitution policies designed to maintain hard currency reserves [en.wikipedia.org] in recent years, uzbekistan has pursued several approaches in foreign economic relations. in 2018, the government renewed the process to accede to the world trade organization (wto). in february 2019, the government started negotiations with the european union (eu) to sign an enhanced partnership and cooperation agreement. uzbekistan also applied for and obtained general scheme of preferences plus (gsp+) status, granting full removal of tariffs on over 66% of the eu tariff lines. in june 2019, the government announced that it would also consider joining the eurasian economic union (eeu) [1]. despite these advancements, challenges persist. the trade deficit highlights the need for further diversification of export commodities and the development of value-added industries. additionally, external factors such as global economic fluctuations and geopolitical tensions pose risks to uzbekistan's trade stability[trade.gov]. methodology this study employs a mixed-methods approach, integrating quantitative and qualitative analyses to assess the current state of uzbekistan's foreign trade development. the quantitative component involves the collection and analysis of trade data from authoritative sources such as the state statistics committee of uzbekistan, the international monetary fund (imf), and the world bank. key indicators analyzed include total trade turnover, export and import volumes, trade balance, and the composition of trade by commodity and partner country. https://en.wikipedia.org/wiki/economy_of_uzbekistan?utm_source=chatgpt.com https://www.trade.gov/country-commercial-guides/uzbekistan-market-overview?utm_source=chatgpt.com american journal of business management, economics and banking volume 33 february 2025 p a g e | 84 www.americanjournal.org to evaluate the impact of regional integration efforts, the study examines uzbekistan's participation in agreements such as the commonwealth of independent states free trade area (cisfta) and its observer status in the eurasian economic union (eaeu). the analysis includes a review of policy documents, official statements, and relevant literature to assess the implications of these affiliations on trade dynamics. the qualitative component comprises a literature review of existing studies on uzbekistan's trade policies and economic reforms. this includes an analysis of policy shifts from protectionism to liberalization, the role of international organizations, and the impact of global economic trends on uzbekistan's trade performance. by triangulating data from multiple sources and employing both quantitative and qualitative methods, this study aims to provide a comprehensive and nuanced understanding of uzbekistan's foreign trade development in the contemporary economic landscape. results the empirical analysis of uzbekistan's foreign trade dynamics reveals a nuanced trajectory characterized by both advancements and persistent challenges. in 2024, the nation's foreign trade turnover (ftt) escalated to $65.9 billion, marking a 3.8% augmentation compared to the preceding year. this increment encompasses an 8.4% surge in exports, totaling $26.95 billion, while imports experienced a modest rise of 0.8%, culminating at $38.99 billion [6]. a disaggregated examination of trade partnerships underscores china's preeminence, accounting for 18.9% of uzbekistan's ftt, followed by russia at 17.6%, and kazakhstan at 6.5%. notably, trade with member states of the eurasian economic union (eaeu) reached $17.5 billion in 2024, with exports constituting $5.83 billion and imports $11.66 billion [6]. the trade balance, however, delineates a persistent deficit. as of november 2024, uzbekistan recorded a trade deficit of $1.44 billion, a significant increase from the $823.4 million deficit reported in the prior month. this trend underscores the ongoing challenge of aligning import and export levels [6]. sectoral analysis reveals that natural gas trade plays a pivotal role in uzbekistan's foreign trade activities. in 2024, the country exported $628 million worth of natural gas but imported $1.68 billion worth, more than 2.5 times the value of its exports. gas imports rose sharply, increasing 2.4 times compared to 2023. purchases of natural gas from turkmenistan and russia surged from $694.9 million in 2023 to $1.68 billion in 2024 [5]. projections for 2025 indicate a continuation of these trends. the asian development bank forecasts uzbekistan's gdp growth to reach 6.2% in 2025, driven by robust industrial expansion and heightened investment activities. concurrently, the world bank anticipates a slight moderation in growth to 5.8% in 2025, with consumption growth remaining strong due to rising real wages and sustained remittance inflows [1,7]. in terms of trade composition, the export sector is expected to benefit from increased production in industrial goods and services, while imports are projected to rise in alignment with the country's ongoing modernization efforts, particularly in machinery and equipment. the government’s strategic initiatives, including plans to attract $43 billion in investments for 2025 to fund over 300 large-scale projects, are anticipated to further bolster the trade sector [2]. despite these positive indicators, the trade deficit remains a critical concern. efforts to diversify export commodities and develop value-added industries are imperative to mitigate this imbalance. american journal of business management, economics and banking volume 33 february 2025 p a g e | 85 www.americanjournal.org additionally, external factors such as global economic fluctuations and geopolitical tensions pose risks to uzbekistan's trade stability. the government's commitment to economic liberalization and integration into the global economy, exemplified by its bid to join the world trade organization by 2026, reflects a strategic approach to addressing these challenges and enhancing trade competitiveness. in summary, while uzbekistan's foreign trade sector exhibits promising growth trajectories, sustained efforts in structural reforms, diversification, and strategic investments are essential to achieve longterm economic resilience and prosperity. discussion the empirical data delineates a nuanced trajectory in uzbekistan's foreign trade dynamics, characterized by both commendable advancements and persistent challenges. the 3.8% augmentation in foreign trade turnover (ftt) in 2024, culminating at $65.9 billion, underscores the efficacy of recent economic reforms aimed at bolstering trade activities. this growth is further exemplified by an 8.4% surge in exports, reaching $26.95 billion, juxtaposed against a modest 0.8% increase in imports, totaling $38.99 billion [3]. a granular analysis reveals that china and russia have solidified their positions as uzbekistan's principal trading partners, accounting for 18.9% and 17.6% of the total trade turnover, respectively. kazakhstan follows, contributing 6.5% to the trade volume [3]. this distribution underscores uzbekistan's strategic orientation towards regional economic integration. despite these positive indicators, the persistent trade deficit, recorded at $12.04 billion in 2024, remains a salient concern. this deficit, albeit reduced from $13.7 billion in the previous year, highlights the structural imbalance between imports and exports [3]. the substantial reliance on imports, particularly in sectors such as machinery and transport equipment, which constitute 34.6% of total imports, exacerbates this imbalance. the sectoral composition of exports indicates a heavy dependence on commodities, with gold exports accounting for 27.8% of total exports, despite an 8.3% decrease in value compared to the previous year. industrial goods and services also represent significant portions of exports, at 15.6% and 26.7% respectively [4]. this commodity-centric export structure renders the economy susceptible to global price volatilities. projections for 2025 suggest a continuation of these trends. the asian development bank forecasts a gdp growth rate of 6.2%, driven by robust industrial expansion and heightened investment activities [1]. concurrently, the world bank anticipates a slight moderation in growth to 5.8%, with consumption growth remaining strong due to rising real wages and sustained remittance inflows [7]. in terms of trade composition, the export sector is expected to benefit from increased production in industrial goods and services, while imports are projected to rise in alignment with the country's ongoing modernization efforts, particularly in machinery and equipment. the government's strategic initiatives, including plans to attract $43 billion in investments for 2025 to fund over 300 large-scale projects, are anticipated to further bolster the trade sector [2]. despite these positive indicators, the trade deficit remains a critical concern. efforts to diversify export commodities and develop value-added industries are imperative to mitigate this imbalance. additionally, external factors such as global economic fluctuations and geopolitical tensions pose risks to uzbekistan's trade stability. the government's commitment to economic liberalization and american journal of business management, economics and banking volume 33 february 2025 p a g e | 86 www.americanjournal.org integration into the global economy, exemplified by its bid to join the world trade organization by 2026, reflects a strategic approach to addressing these challenges and enhancing trade competitiveness. in summary, while uzbekistan's foreign trade sector exhibits promising growth trajectories, sustained efforts in structural reforms, diversification, and strategic investments are essential to achieve longterm economic resilience and prosperity. conclusion uzbekistan's foreign trade sector has undergone significant transformations, reflecting both the successes of economic liberalization and the persistent challenges of structural trade imbalances. the 3.8% increase in foreign trade turnover in 2024, reaching $65.9 billion, indicates positive momentum driven by export growth and diversification efforts. however, the persistent trade deficit, totaling $12.04 billion, highlights ongoing structural challenges, particularly the reliance on commodity exports and high import dependency in industrial sectors. the country's key trading partners—china, russia, and kazakhstan—continue to play a dominant role in shaping its trade dynamics. regional integration efforts, such as engagement with the eurasian economic union (eaeu) and the european union’s generalized scheme of preferences plus (gsp+), are fostering increased trade opportunities. yet, uzbekistan remains vulnerable to external economic fluctuations, global commodity price volatility, and geopolitical uncertainties. projections for 2025 suggest continued economic expansion, with gdp growth expected to range between 5.8% and 6.2%. government initiatives, including a $43 billion investment plan for industrial modernization, infrastructure development, and export promotion, are likely to strengthen the trade sector. however, achieving sustainable growth will require strategic policy interventions focused on diversifying exports, improving trade balance, and strengthening industrial production capacity. in conclusion, while uzbekistan's foreign trade development reflects progress toward integration into the global economy, long-term stability hinges on structural reforms, increased competitiveness in high-value industries, and resilience against external economic risks. the country’s continued commitment to trade liberalization and wto accession will play a pivotal role in shaping its future trade trajectory. references 1. asian development bank (adb). (2024). adb raises economic growth forecast for uzbekistan. retrieved from https://www.adb.org/news/adb-raises-economic-growth-forecast-uzbekistan 2. caspian post. (2024). uzbekistan sets ambitious investment and export goals for 2025. retrieved from https://caspianpost.com/uzbekistan/uzbekistan-sets-ambitious-investment-and-export-goalsfor-2025 3. interfax. (2024). uzbekistan’s foreign trade turnover grows in 2024. retrieved from https://interfax.com/newsroom/top-stories/109278 4. invexi. (2024). analysis of uzbekistan's foreign trade turnover for january-december 2024. retrieved from https://invexi.org/en/press/analysis-of-uzbekistan-s-foreign-trade-turnover-forjanuary-december-2024 5. times of central asia. (2024). uzbekistan's foreign trade turnover grows by 3.8% in 2024. retrieved from https://timesca.com/uzbekistans-foreign-trade-turnover-grows-by-3-8-in-2024 american journal of business management, economics and banking volume 33 february 2025 p a g e | 87 www.americanjournal.org 6. trading economics. (2024). uzbekistan balance of trade. retrieved from https://tradingeconomics.com/uzbekistan/balance-of-trade 7. world bank. (2024). uzbekistan: country overview. retrieved from https://www.worldbank.org/en/country/uzbekistan/overview https://www.worldbank.org/en/country/uzbekistan/overview american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 112 www.americanjournal.org priority areas of the green economy in sustainable economic development ibragimova saodat abdumuminovna, ph.d., professor, tashkent state technical university named after i.karimov a b s t r a c t k e y w o r d s at the new stage of development of our country, as in all other areas, work being carried out in the field of environmental protection, rational use of natural resources, and prevention of the negative impact of environmental problems on human health is key to sustainable development. green economy, economic development, the concept of "sustainable development", investment. introduction the concept of "sustainable development" promoted by the united nations (un), has become the main goal of countries worldwide. in the concept, the goal of achieving high economic growth for all countries was replaced with the goal of achieving sustainable development. this, in turn, means that all areas of the world economy agriculture, industry, transport, finance, energy, and construction are important to become "green." in this regard, the resolution of the republic of uzbekistan "on measures to increase the effectiveness of reforms aimed at the transition of the republic of uzbekistan to a 'green' economy for the period until 2030" was adopted. measures have been identified to implement the tasks outlined in the development strategy of new uzbekistan for 2022-2026, within the framework of the strategy for the transition to a green economy of the republic of uzbekistan. these measures aim to increase the effectiveness of measures taken to ensure green and inclusive economic growth, the use of renewable energy sources, and further expansion of resource conservation in all sectors of the economy. in the program for transitioning to a "green" economy and ensuring "green" growth in the republic of uzbekistan until 2030, it is recognized that problematic issues related to climate change will have a negative impact on the effectiveness of reforms being implemented in the country, particularly on economic growth and reducing poverty, and ensuring environmental and food security. much attention is given to reducing the impact of climate change and adapting to it, accelerating the transition to a green economy, and promoting a green and inclusive model of economic growth. in order to stimulate "green" economic growth in the country, rational use of natural resources, attract "green" investments, and mitigate the negative impact of the environmental crisis, the decree of the president of the republic of uzbekistan dated october 5, 2019 no. pp-4477 american journal of business management, economics and banking volume 22 march 2024 p a g e | 113 www.americanjournal.org approved a strategy for the transition to a "green" economy of the republic of uzbekistan for the period 2019-2030. to support the sustainable development program, it is necessary to carry out comprehensive work in three areas of sustainable development: economic, environmental, and social. according to this, investing 2% of global gdp in greening the economy will ensure current and future long-term growth rates from 2011 to 2050 and prevent serious risks associated with climate change, increasing water scarcity, and loss of ecosystem services. sustainable development does not mean stability in the literal sense, as constant quantitative growth, but "conflict-free" development, taking into account environmental and social characteristics. the word "sustainable" should not be understood as "permanent," but as "strong" or "durable." today, the basic principles of the concept of inclusive sustainable growth, including the presence of a strong connection between the rate of economic growth and the solution of a wide range of social problems, including the fair distribution of income generated in society, lead to the conclusion that special attention should be paid to the poorest segments of the population. target indicators for the transition to a green economy and ensuring “green” growth in the republic of uzbekistan until 2030 № indicators unit 2022 year 2024 year 2026 year 2028 year 2030 year 1. reduced energy consumption per unit of gdp (compared to from 2021) % 5,0 14,0 22,0 27,0 30,0 2. electricity consumption in industry, its share in total consumption % 26,0 25,0 23,0 21,0 20,0 3. increasing the share of renewable energy sources in total electricity production (along with hydropower) % 8,0 9,0 24,3 29,0 30,5 kw/h 6,5 8,6 25,0 34,0 40,7 4. construction of low power solar photovoltaic installations mw 10,0 150,0 400,0 800,0 1500,0 5. population with access to improved drinking water sources, relative to total population % 69,7 80,93 87,12 88,5 90,0 6. increasing the stock of trees and shrubs in forest areas million m3 64,2 68,1 77,0 85,5 92,3 7. expansion of green spaces in cities within the framework of the «yashil makon» project (relative to the total area of the settlement) % 8,3 12,4 15,8 23,8 30,0 8. degree of processing of generated municipal solid waste % 30,0 40,0 50,0 60,0 65,0 american journal of business management, economics and banking volume 22 march 2024 p a g e | 114 www.americanjournal.org the "green" economy is based on saving energy and resources, reducing carbon emissions into the atmosphere, using clean energy for transportation, alternative energy sources, organic agriculture, eco-development (construction with low environmental impact), and developed logistics. the sustainable development goals in the republic of uzbekistan are the main principles of economic reform. within this framework, emerging market mechanisms are optimally integrated with environmental and social policies based on innovation. priority is given to modernizing the environmental monitoring system, which allows for a comprehensive solution to existing problems. on the basis of public-private partnership, clusters of integrated solid waste management have been created with the introduction of recycling and recycling technologies. these are related to the specific climatic and geographical features of uzbekistan, its unique ecosystems, and innovation policy priorities aimed at reducing environmental impact, energy consumption, and the introduction of energy-saving technologies in the economy and social spheres. additionally, there is a development and implementation of state policy to increase energy efficiency and develop renewable energy sources, promote energy-saving and low-carbon industries, implement important ecosystem restoration projects, and increase the production of environmentally friendly products. in this regard, it should be noted that in 2022, the construction of new renewable energy facilities with a capacity of almost 10 gw, including 5 gw of solar, 3 gw of wind, and 1.9 gw of hydroelectric power plants, as well as 7 projects with a total capacity of 173 mw in the field of hydropower, will take place. un organizations such as the united nations environmental program (unep) and the socio-economic commission for asia and the pacific (escap), as well as international organizations like the global green growth institute (gggi), play an active role in promoting green growth strategies. the green economy covers sustainable development issues such as preserving the environment, biodiversity, and ecosystem services, creating green jobs, and addressing poverty. the main obstacles to green economic growth may be the presence of technological barriers, low innovation potential, lack of demand for innovative products and scientific discoveries, and generally low economic returns from environmentally oriented innovations. to overcome these obstacles, it is important to develop tools for implementing environmental policy correctly. the main stages of a comprehensive assessment of the effectiveness of environmental policy and green growth are selecting priority indicators of the environmental effectiveness of green growth, determining the level of effectiveness with their help, and comparing performance indicators to set targets. in the long term, based on the goals of the “green economy” development model, when introducing the following sectors of the economy, the results will be assessed according to the level of achievement: energy (energy efficiency, partial transition to renewable energy), waste disposal (reduction of anthropogenic impact), “green” technologies (bio-, nano-, information and communication technologies). analysis and calculation of environmental and economic indicators of the development of the “green economy” are of great importance. the effectiveness of the model is explained by the socio-economic and environmental consequences of its implementation, taking into account the effectiveness of economic mechanisms for ensuring the transition to a “green economy”. as american journal of business management, economics and banking volume 22 march 2024 p a g e | 115 www.americanjournal.org part of the formation of a “green economy,” the formation of global environmental risks and modern adaptation mechanisms, the assessment of environmental risks, and forecasting the quality of the environment as a result of natural and anthropogenic impacts are becoming an increasingly urgent problem. to create an information and analytical system, collect and store knowledge in the field of assessing damage from environmental pollution, analyze knowledge in the field of assessing negative external effects of economic development, digitize the process of environmental and economic analysis, comprehensive assessment of damage from pollution by various components of the environment, negative environmental threats and the development of software tools for monitoring, analyzing and forecasting risks is of great importance. in the future, the effectiveness of the “green economy” development model will be assessed through its implementation in the following sectors of the economy: energy (energy efficiency, partial transition to renewable energy sources), waste disposal (reduction of anthropogenic impact), “green” technologies (bionanotechnologies, information and communication technologies), "green" transport, "green" building, and clean water (wise use of water resources).in this context, much attention should be paid to several factors. firstly, "ecological innovation" is crucial. secondly, a national program should be established to solve environmental problems and ensure environmental safety, including the comprehensive and local restoration of ecosystems in areas with increased environmental hazards, increasing the efficiency of ecosystem monitoring and forecasting of environmental processes in the region, ensuring the interests of the country in the region in terms of the use of mineral and water-energy resources, and formation of a regulatory international legal framework. thirdly, legislation on the use of natural resources should be improved, and favorable conditions for the introduction of technologies, attracting "green" investments, and creating appropriate economic mechanisms for adaptation to climate change should be created. fourthly, ensuring environmental safety is not only directly related to the lives of people living in a given country or region but also has global significance. therefore, priority tasks include increasing consideration of the environmental factor in the development and modernization of production in the region, introducing environmentally friendly technologies, bionanotechnologies, supporting eco-innovations, and developing the activities of public associations, non-governmental and non-profit organizations in solving certain environmental problems. finally, it is necessary to provide for the solution of a number of urgent issues related to environmental protection and ensuring environmental safety, including improving legislation on the use of natural resources, creating favorable conditions for the introduction of eco-innovative technologies, attracting "green" investments, creating appropriate economic mechanisms for adaptation to climate change, improving environmental taxes, and introducing new financial instruments for the development of "green" (environmentally friendly) technologies through public procurement and implementation of "green" investments taking into account environmental requirements. uzbekistan's green growth and partnership for achieving global goals (p4g) is a major international initiative launched in recent years. it can be called a special club of countries and cities that have chosen the path of "green development". currently, there are more than ten participants in the project. as part of this platform, participants will jointly create innovative solutions that will help transition to a green economy. p4g is an institutional framework supported american journal of business management, economics and banking volume 22 march 2024 p a g e | 116 www.americanjournal.org by a number of prestigious international associations and financial institutions. with its help, uzbekistan can attract the necessary investments to implement the green economy strategy. our participation in the p4g partnership will ultimately lead to an improvement in the lifestyle of uzbek citizens, an increase in the quality of life, better urban amenities, restoration of the ecological balance in our region, and many other positive changes. in the context of the implementation of the concept of sustainable development, the development of forms and mechanisms of an innovative, environmentally oriented development model of uzbekistan requires that it be based on harmonization in the transition from the protection of individual elements of nature to the protection of ecological systems as a whole. this will guarantee optimal parameters of the environment in which people live and interact with mechanisms for the development of economic sectors according to the principles of "green economy". references 1. resolution no. president’s decree-436 on measures to increase the effectiveness of reforms aimed at the development of the "green" economy of the republic of uzbekistan by december 2, 2022. 2. isadjanov a.a. environmental aspects of sustainable economic development. monograph. tashkent.: complex print. 2020. 200 p. 3.ibragimova s.a., zikrillaev n.n. priorities of environmental policy in economic development // journal: biznes – expert, no. 4, 2022, pp. 24-26. 4. ibragimova s.a., zikrillaev n.n. the importance and priorities of the "green" economy in sustainable economic development// journal: biznes – expert, 2023, no. 4, pp.33-38. 5. ibragimova s.a. priority development of "green" economic and sustainable economic development. ministry of higher education, science and innovation of the republic of uzbekistan, tstu named after i. karimov, proceedings of the 3rd international scientif ic and practical conference on "industrial economics and management: problems and solutions". a collection of articles and theses. t.: "marifat", 2023, pp. 41-45. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 58 www.americanjournal.org improving the financing mechanism of preschool educational organizations in uzbekistan nasurova kamolaxon ravshanovna tashkent financial institute, phd email: www.k.r_nasurova@mail.ru a b s t r a c t k e y w o r d s this article discusses the problems of evaluating the quality of educational activities in preschool educational institutions and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice. preschool education, funding, efficiency, budgetary resources. introduction in recent years, the high level of attention given to the process of development of the continuous education system in our country is equally manifested in all stages of the education system, and the vivid expression of this situation is also manifested in the activities of preschool educational organizations. currently, extensive reforms are being carried out in all spheres in our country, including the fact that the priority direction of these reforms is the comprehensive development of quality education. due to the increase in the population of our country, the expansion of educational services and the formation of the knowledge, skills and qualifications of the students are the goals, so it is necessary to increase the efficiency of the financial mechanism along with the organizational and economic mechanisms of the development of activities of preschool educational organizations. a number of tasks related to this issue are defined in the "concept of development of the preschool education system of the republic of uzbekistan until 2030" approved by the resolution of the president of the republic of uzbekistan dated may 8, 2019 no. pq-4312 the current level of financing of the preschool education system, maintaining the coverage of preschool children at the current level while the dynamics of birth growth is maintained, ensuring the use of preschool education services by a wide range of population due to the development of new funding regulations, financial control, prevention of violations of budget legislation by preschool education organizations requires improvement of the mechanisms of obtaining and prevention. analysis of literature on the topic scientific-theoretical approaches to the category of "financial mechanism" have been thoroughly studied within the framework of the researches of foreign economists a.yu. is recognized as a means of relative influence [2]. according to the results of the research carried out by g. v. pisarenko, it is defined as "the financial mechanism is a system of forms, types and methods of organizing financial american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 59 www.americanjournal.org relations established by the state" [3]. according to the conclusions based on v.v.petrushevskaya, n.a.brovar's research, "the financial mechanism is a means of organizing financial relations by the state at the level of the national economy and its individual subjects" [4]. the processes of financing the activities of preschool educational organizations occupy a special place in the researches of s.v.kuznetsova, a.n.ilchenko. in the course of research, it is noted that the need for preschool education services changes under the influence of socio-demographic factors, the effective activity of preschool education is based on the forecast results based on the correct analysis of the processes of its operation. it is also recommended to use mathematical methods and models for financial regulation of activities of pre-school educational organizations, thereby choosing appropriate tools for the purpose [5]. economists t. malikov, o. olimzhanov recognize it as a "financial mechanism a system of stateestablished forms, types and methods of organizing financial relations" [6]. kh.b. nazarov's scientific research discusses the problems of evaluating the quality of education in preschool educational organizations and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice [7]. based on the above thoughts and considerations, it can be said that the "mechanism of financing" activities of preschool educational organizations is a combination of the use of various forms and methods of financial resources appropriated by the state in financing preschool educational organizations. research methodology this article used methods such as analysis of scientific works, scientific monographs, manuals and articles of foreign and local scientists, statistical analysis, analytical comparison of tables, grouping, calculation of quantitative and qualitative indicators, and their comparison with each other. analysis and results the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. funding of preschool education organizations within the state and local budgets is carried out in the following directions: expenses of the first and second groups, taking into account the remuneration fund for employees of the preschool educational organization, including allowances and additional payments and social payments; costs of organizing the educational process in preschool educational organizations; the amount of capital expenditures in preschool educational institutions. funding of preschool education organizations is carried out based on the state preschool education program in accordance with the relevant cost estimates. in this case, the cost estimate and staff table of pre-school educational organizations, labor costs are implemented in accordance with the approved regulatory and legal documents and per capita financing criteria. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 60 www.americanjournal.org in 2020-2022, quality changes in this regard are provided in the general indicators of preschool education organizations in the republic of uzbekistan. in 2020, the total number of preschool educational organizations in the republic of uzbekistan was 18,345, and in 2022, this number will increase by 49% to 27,303 (table 1). table 1 indicators of preschool education organizations in the republic of uzbekistan in 2021-2022 1 indicators 2020 2021 2022 number of pre-school educational organizations 18345 22429 27303 from which: state pre-school educational organizations 5981 6031 6387 pre-school educational organizations based on ppp 1166 1200 1345 family preschool educational organizations 10771 14579 18797 private preschool educational organizations 427 619 774 capacity (thousand seats) 852,5 856,2 858.3 number of groups (thousand units) 46 46,3 46.8 number of trainees (thousands) 1608,0 1715,3 1918,1 from which: in state preschool education organizations (thousands of people) 1130,7 1153,3 1311,0 in preschool educational organizations based on ppp (thousands of people) 107,5 118,3 133,0 in family preschool educational organizations (thousands of people) 369,7 443,7 494.0 number of children aged 3-7 (thousands) 2792,8 2876,6 2927,4 coverage of children with preschool education, % 58 63 67 in 2020-2022, in the general structure of the indicators of preschool education organizations in the republic of uzbekistan, the tasks related to increasing the number of preschool education organizations in the field of public-private partnership from 1,166 to 1,345 are noted, which indicates that special attention is being paid to the public-private partnership system in supporting the activities of preschool education organizations. in accordance with the legislation of the republic of uzbekistan, financing of the activities of state preschool educational organizations is carried out at the expense of state budget funds, fees for care, feeding and looking after children in preschool educational organizations, as well as other sources not prohibited by legislation. based on the results of the monitoring, the cost estimate for financing the organization of education in state preschool educational organizations for the next year will be carried out according to the standards set in the general education programs. when calculating subventions from the local budget, the state standard of financing from the budget and the volume of direct financing of pre-school education organizations in case of joint organization are used. due to the fact that in the process of budget financing of pre-school education organizations, the current funds allocated according to the cost estimate are allocated taking into account the market 1 2022 budget project for citizens in uzbekistan. t., 2021. 15-16 pages american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 61 www.americanjournal.org prices for the reporting period, problematic situations related to the lack of funds may arise in the financing of costs. in this process, the amount of expenses for the first and second group of preschool education organizations will be increased. the financial performance of preschool educational organizations can be evaluated by how well children can adapt to society and social life and how quickly they can adapt to the situation when they go to school, and can acquire knowledge and skills in accordance with educational programs. in contrast, efficiency is measured by how much money is spent on each child. the combination of these two indicators can serve as a basis for evaluating how effectively the available funds are used in preschool education organizations. the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. conclusions and suggestions the need to research the theoretical-methodological foundations of the improvement of the financial mechanism of the development of activities of preschool educational organizations increases due to the occurrence of inconsistencies between demand and supply in the market of educational services. especially in the context of market relations, the lack of funds in the field of education is manifested by the demand for education, a wide range of educational services and limited opportunities for consumers of services. it is necessary to solve the existing problems in the financing system in preschool education organizations, to increase the efficiency of financing by directing new models of implementation of the financing system, the compatibility of system elements to sources of financing. this, in turn, will serve to implement a systematic approach to the formation of new relationships between preschool education organizations, new models of education financing to ensure the appropriate proportion of budgetary and extra-budgetary funds. it is possible to achieve target indicators in the process of financing preschool education by ensuring the compatibility of the forms of financing the activities of preschool education organizations and their structural composition between regions. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 62 www.americanjournal.org list of used literature 1. concept of developing preschool education system of the republic of uzbekistan until 2030 2.kazak a.yu, veretennikova o.b, maramygin m.s, rostovtsev k.v. cash management of enterprises: a textbook for universities. ekaterinburg, 2006. – 464 p. 3. pisarenko g.v. theory of finance: educational method. allowance. minsk: bseu, 2018. – 49 p. 4. petrushevskaya v.v., brovar n.a. systematic view of the economic content of the category “financial mechanism” // business strategies. 2020. no. 8., 213 pp. 5. kuznetsova s.v., ilchenko a.n. problems of financing preschool educational institutions (dou) // modern science-intensive technologies. – 2008. – no. 4. – p. 170-172 6. malikov t, olimjonov o. finance. textbook. t.: "economy-finance" 2019. 800 p. 7. nazarov kh.b. methods of evaluating the effectiveness of financing preschool educational organizations. "science and education" scientific journal volume 1 issue 2 american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 148 www.americanjournal.org increasing the efficiency of working with problem loans in banks makhamadumarov kasimjon dilmurod ugli graduate student of the academy of banking and finance of the republic of uzbekistan tel. +998 91 496 71 71, email: maxamadumarovkosimzan@gmail.com a b s t r a c t k e y w o r d s problem loans, also known as non-performing loans (npls), pose a significant risk to the financial stability of banks and financial institutions. efficiently managing these problematic assets is crucial for maintaining the health of a bank's portfolio and ensuring overall financial stability. this article explores various strategies to enhance the efficiency of working with problem loans, including early identification and monitoring, restructuring and refinancing, establishing dedicated problem loan units, leveraging legal and regulatory frameworks, enhancing communication with borrowers, utilizing technology and data analytics, and forming partnerships and outsourcing. through detailed analysis and case studies from past financial crises, this article provides a comprehensive overview of best practices and methodologies that banks can adopt to mitigate the risks associated with npls, ultimately contributing to the resilience of the financial system. non-performing loans (npls). problem loans. financial stability. loan restructuring. early warning systems. loan monitoring. credit risk management. financial institutions. debt recovery. banking crisis. economic downturns. loan refinancing. data analytics. legal and regulatory compliance. financial counseling. loan management strategies. introduction problem loans, often referred to as non-performing loans (npls), represent a significant challenge for banks and financial institutions worldwide. these loans, characterized by delayed repayments or outright default, threaten the financial health of lending institutions by tying up capital that could otherwise be used for profitable ventures. the efficient management of these problematic assets is essential not only for the stability of individual banks but also for the broader financial system and economy. the importance of addressing problem loans has become particularly evident during periods of economic distress. for instance, the global financial crisis of 2008 and the subsequent european debt crisis highlighted the vulnerabilities of banks laden with high levels of npls. these crises underscored american journal of business management, economics and banking volume 24 may 2024 p a g e | 149 www.americanjournal.org the necessity for banks to develop robust strategies for managing problem loans to safeguard their balance sheets and maintain investor confidence. in a healthy economy, problem loans are usually kept at manageable levels through prudent lending practices and effective risk management. however, during economic downturns or periods of significant market volatility, the incidence of problem loans tends to increase. factors such as declining business revenues, rising unemployment, and falling asset prices contribute to borrowers' inability to meet their debt obligations, resulting in a surge of npls. banks' failure to efficiently manage npls can lead to a cascade of adverse effects. high levels of npls can erode a bank's capital base, constrain its ability to lend, and ultimately lead to insolvency. moreover, systemic issues arising from widespread loan defaults can trigger broader financial instability, affecting not only the banking sector but also the overall economy. therefore, it is imperative for banks to develop and implement comprehensive strategies to manage problem loans effectively. these strategies involve early identification and monitoring of potential problem loans, restructuring and refinancing options, the establishment of specialized units, adherence to a strong legal and regulatory framework, enhanced communication with borrowers, and leveraging technology and data analytics. this article aims to explore these strategies in detail, providing insights into how banks can enhance the efficiency of their problem loan management practices. by adopting a proactive and multi-faceted approach, banks can mitigate the risks associated with npls, ensuring their own stability and contributing to the resilience of the financial system as a whole. the subsequent sections will delve into the specific strategies banks can employ, supported by case studies and practical examples from past financial crises. by understanding and implementing these best practices, banks can navigate the challenges posed by problem loans and emerge stronger and more resilient in the face of economic uncertainties. understanding problem loans problem loans, also known as non-performing loans (npls), are a significant concern for banks and financial institutions. these loans are characterized by a borrower’s inability to meet the scheduled payments of principal and interest, posing a risk to the lender’s financial health. understanding the nature, causes, and implications of problem loans is crucial for developing effective management strategies. definition and classification a loan is typically classified as non-performing when payments of interest and principal are overdue by 90 days or more, or if it is unlikely that the borrower will repay the full amount without the bank taking legal action to enforce the loan terms. there are different stages of delinquency that a loan can go through before being classified as an npl: 1. performing loans: loans where borrowers are making timely payments. 2. special mention loans: loans that exhibit potential weaknesses that deserve management's close attention but are not yet impaired. 3. substandard loans: loans that are inadequately protected by the current sound worth and paying capacity of the obligor. 4. doubtful loans: loans where full repayment is highly questionable and improbable. american journal of business management, economics and banking volume 24 may 2024 p a g e | 150 www.americanjournal.org 5. loss loans: loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. causes of problem loans several factors can lead to the emergence of problem loans, and these can be broadly categorized into external and internal factors: economic downturns: economic recessions or slowdowns can lead to a rise in unemployment and business failures, affecting borrowers' ability to repay loans. market conditions: changes in market conditions, such as falling commodity prices or real estate values, can reduce borrowers' income and asset values, impacting their repayment capacity. regulatory changes: new regulations or changes in existing ones can affect borrowers' operations, making it difficult for them to service their debts. external factors economic downturns market conditions regulatory changes internal factors poor credit assessment inefficient loan monitoring mismanagement american journal of business management, economics and banking volume 24 may 2024 p a g e | 151 www.americanjournal.org poor credit assessment: inadequate assessment of borrowers' creditworthiness at the time of loan origination can lead to loans being extended to high-risk borrowers. inefficient loan monitoring: lack of regular monitoring and follow-up on loan performance can result in delayed identification of emerging problems. mismanagement: poor management practices within the borrowing entity can lead to operational inefficiencies and financial distress. implications of problem loans high levels of problem loans can have severe implications for banks and the broader economy: ➢ financial stability: npls erode a bank’s capital base, reducing its ability to absorb losses and undermining financial stability. ➢ liquidity constraints: problem loans tie up capital, limiting the bank’s ability to lend to other borrowers and potentially leading to liquidity shortages. ➢ profitability impact: increased provisioning for loan losses reduces the bank's profitability, impacting its earnings and return on equity. ➢ reputation risk: persistent high levels of npls can damage a bank's reputation, affecting its relationships with customers, investors, and regulators. ➢ economic impact: widespread problem loans can lead to a credit crunch, where banks become more risk-averse, reducing credit availability and slowing economic growth. measurement and reporting accurate measurement and reporting of npls are essential for transparency and effective management. banks use various metrics to assess the extent of problem loans, including: 1. npl ratio: the ratio of non-performing loans to total loans, providing a measure of the proportion of the loan portfolio that is problematic. 2. coverage ratio: the ratio of loan loss reserves to non-performing loans, indicating the extent to which npls are covered by provisions. 3. provisioning levels: the amount set aside to cover potential loan losses, reflecting the bank’s risk management practices. understanding the nature, causes, and implications of problem loans is the first step in developing effective management strategies. by addressing the underlying causes and implementing robust monitoring and recovery processes, banks can mitigate the risks associated with npls and maintain financial stability. the following sections will explore various strategies and best practices for managing problem loans efficiently. key strategies for efficient management of problem loans 1. early identification and monitoring: implementing robust early warning systems to detect signs of potential loan defaults. utilizing advanced analytics and artificial intelligence to monitor loan performance and predict defaults. regularly reviewing loan portfolios to identify high-risk sectors and borrowers. american journal of business management, economics and banking volume 24 may 2024 p a g e | 152 www.americanjournal.org 2. restructuring and refinancing: offering loan restructuring options to borrowers facing temporary financial difficulties. extending loan terms, reducing interest rates, or providing grace periods to help borrowers get back on track. refinancing loans to more manageable terms to prevent defaults. 3. dedicated problem loan units: establishing specialized units within the bank dedicated to managing problem loans. training staff specifically for dealing with npls to ensure expertise and focused attention. empowering these units with the authority to make quick decisions on restructuring and recovery efforts. 4. legal and regulatory framework: working closely with legal teams to navigate the complexities of loan recovery. ensuring compliance with regulatory requirements to avoid legal pitfalls. advocating for regulatory reforms that facilitate easier management and recovery of problem loans. 5. enhanced communication with borrowers: maintaining open and proactive communication channels with borrowers to understand their financial situations. collaborating with borrowers to develop mutually beneficial solutions. providing financial counseling and support to help borrowers improve their financial health. 6. use of technology and data analytics: leveraging technology to automate loan monitoring and reporting processes. using data analytics to gain insights into borrower behavior and market trends. implementing digital platforms for efficient loan restructuring and recovery management. 7. partnerships and outsourcing: partnering with external agencies specializing in loan recovery and asset management. outsourcing certain aspects of npl management to firms with expertise in debt recovery. collaborating with other financial institutions to share best practices and resources. case studies and practical examples 1. global financial crisis of 2008: during the 2008 financial crisis, many banks faced a surge in npls. successful banks quickly identified problem loans and took aggressive measures to restructure and recover these loans, minimizing losses. 2. asian financial crisis: banks in asia during the financial crisis of the late 1990s implemented extensive loan restructuring programs, often supported by government interventions, to stabilize their financial systems. 3. european debt crisis: american journal of business management, economics and banking volume 24 may 2024 p a g e | 153 www.americanjournal.org european banks, particularly in countries like greece and italy, have adopted comprehensive strategies to manage npls, including the establishment of asset management companies and the use of government-backed guarantee schemes. conclusion efficiently managing problem loans is essential for the stability and profitability of banks. by adopting a multi-faceted approach that includes early identification, restructuring, specialized units, legal frameworks, enhanced communication, technology, and partnerships, banks can significantly improve their handling of npls. these strategies not only mitigate risks but also contribute to the overall health of the financial system, ensuring that banks remain resilient in the face of economic challenges. references 1. aiyar, s., bergthaler, w., garrido, j., ilyina, a., jobst, a., kang, k., ... & kovtun, d. (2015). a strategy for resolving europe's problem loans. imf staff discussion notes, 15(19). 2. bholat, d., lastra, r., markose, s., miglionico, a., & sen, k. (2016). non-performing loans: regulatory and accounting treatments of assets. bank of england quarterly bulletin. 3. european central bank. (2017). guidance to banks on non-performing loans. european central bank. 4. fukuda, s., kasuya, m., & nakajima, j. (2010). imbalance of japan's regional bank loan markets and the economic role of the government. journal of banking & finance, 34(10), 2481-2492. 5. ghosh, a. (2015). banking-industry specific and regional economic determinants of nonperforming loans: evidence from us states. journal of financial stability, 20, 93-104. 6. international monetary fund. (2019). global financial stability report: lower for longer. imf. 7. louzis, d. p., vouldis, a. t., & metaxas, v. l. (2012). macroeconomic and bank-specific determinants of non-performing loans in greece: a comparative study of mortgage, business, and consumer loan portfolios. journal of banking & finance, 36(4), 1012-1027. 8. nkusu, m. (2011). nonperforming loans and macrofinancial vulnerabilities in advanced economies. imf working papers, 11(161). 9. reinhart, c. m., & rogoff, k. s. (2009). the aftermath of financial crises. american economic review, 99(2), 466-472. 10. zhang, d., cai, j., dickinson, d. g., & kutan, a. m. (2016). non-performing loans, moral hazard and regulation of the chinese commercial banking system. journal of banking & finance, 63, 4860. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 138 www.americanjournal.org evaluating the impacts of anthropogenic activities on ecosystem goods and services: assessing threats to biodiversity and ecological integrity inagamova nargiza abdurasulovna senior teacher of the "economics and digital technologies" department, tashkent university of social innovation tashkent, uzbekistan a b s t r a c t k e y w o r d s this article investigates the multifaceted impacts of anthropogenic activities on ecosystem goods and services, with a particular focus on assessing threats to biodiversity and ecological integrity. anthropogenic activities, including habitat destruction, pollution, climate change, and resource exploitation, pose significant risks to the functionality and resilience of ecosystems worldwide. through a comprehensive review of literature and empirical research, this study evaluates the diverse ways in which human activities affect the provision of ecosystem goods and services, ranging from provisioning services such as food and water to regulating services like climate regulation and disease control. drawing on ecological principles and environmental science, this research examines the implications of biodiversity loss and ecosystem degradation for human well-being and sustainability. by synthesizing current knowledge and identifying key research gaps, this study aims to inform evidence-based decision-making and conservation efforts aimed at mitigating the impacts of anthropogenic activities on ecosystems. anthropogenic activities, ecosystem goods and services, biodiversity, ecological integrity, threat assessment, conservation. introduction the interplay between human activities and natural ecosystems has become a focal point of scientific inquiry in recent decades, driven by concerns over the sustainability of ecosystem goods and services in the face of increasing anthropogenic pressures. anthropogenic activities, ranging from urbanization and industrialization to agriculture and resource extraction, have exerted profound impacts on the structure, function, and resilience of ecosystems worldwide. this introduction delves into the critical importance of evaluating the impacts of anthropogenic activities on ecosystem goods and services, with a specific emphasis on assessing threats to biodiversity and ecological integrity. anthropogenic activities have led to widespread habitat destruction, fragmentation, and degradation, resulting in the loss of biodiversity and ecosystem services [1]. land-use change, driven by agricultural expansion and urban development, has converted vast areas of natural habitat into humanamerican journal of business management, economics and banking volume 23 april 2024 p a g e | 139 www.americanjournal.org dominated landscapes, leading to habitat loss and fragmentation [2]. pollution from industrial, agricultural, and domestic sources has contaminated air, water, and soil, posing significant risks to human health and ecosystem integrity [3]. climate change, driven primarily by greenhouse gas emissions from human activities, has altered temperature and precipitation patterns, leading to shifts in species distributions, phenology, and ecosystem functioning [4]. unsustainable resource exploitation, including overfishing, deforestation, and water extraction, has depleted natural resources and degraded ecosystems, undermining their capacity to provide essential goods and services [5]. the loss of biodiversity and degradation of ecosystems have far-reaching implications for human well-being and sustainability. ecosystems provide a wide range of goods and services that are essential for human survival and prosperity, including food, water, clean air, climate regulation, and cultural benefits [6]. biodiversity underpins the resilience and stability of ecosystems, enhancing their ability to adapt to changing environmental conditions and withstand disturbances [7]. however, the loss of biodiversity and ecosystem degradation compromise the provision of ecosystem goods and services, threatening human health, livelihoods, and quality of life [8]. in light of these challenges, there is an urgent need to evaluate the impacts of anthropogenic activities on ecosystem goods and services and to assess the threats to biodiversity and ecological integrity. by understanding the drivers and consequences of ecosystem change, policymakers, conservation practitioners, and resource managers can develop effective strategies for mitigating the impacts of anthropogenic activities and promoting ecological resilience [9]. this article aims to contribute to this endeavor by synthesizing current knowledge and research findings on the impacts of anthropogenic activities on ecosystem goods and services, with a focus on assessing threats to biodiversity and ecological integrity. materials and methods 1. habitat destruction and fragmentation: anthropogenic activities, such as urbanization, agriculture, and infrastructure development, have led to widespread habitat destruction and fragmentation. as natural habitats are converted to humandominated landscapes, species lose access to critical resources and become isolated in fragmented patches of habitat. this loss of habitat connectivity reduces species' ability to disperse, reproduce, and maintain viable populations, leading to declines in biodiversity and ecosystem functioning. moreover, habitat destruction and fragmentation disrupt ecosystem processes such as nutrient cycling, water filtration, and carbon sequestration, compromising the provision of ecosystem goods and services [1]. 2. pollution: pollution from industrial, agricultural, and domestic sources poses significant threats to ecosystem health and integrity. contaminants such as heavy metals, pesticides, fertilizers, and plastics can accumulate in soil, water, and air, harming both terrestrial and aquatic ecosystems. pollution can impair water quality, leading to eutrophication, algal blooms, and fish kills in freshwater ecosystems. in marine environments, pollution can cause habitat degradation, coral bleaching, and the decline of marine species. furthermore, air pollution can affect plant growth and respiratory health in humans and wildlife, exacerbating the impacts of climate change on ecosystems [3]. american journal of business management, economics and banking volume 23 april 2024 p a g e | 140 www.americanjournal.org 3. climate change: climate change, driven by anthropogenic greenhouse gas emissions, poses profound challenges to biodiversity and ecosystem functioning [4]. rising temperatures, changing precipitation patterns, and extreme weather events alter habitat suitability and disrupt species' life cycles, distributions, and behaviors. shifts in temperature and precipitation regimes can affect the timing of biological events such as flowering, migration, and reproduction, leading to mismatches between species and their resources. climate change also exacerbates other threats to ecosystems, such as habitat destruction, pollution, and invasive species, further compromising biodiversity and ecosystem resilience. 4. unsustainable resource exploitation: unsustainable resource exploitation, including overfishing, deforestation, and water extraction, depletes natural resources and undermines ecosystem integrity . overfishing and habitat destruction in marine ecosystems can lead to the collapse of fish stocks and the loss of biodiversity. deforestation for agriculture, logging, and urban development reduces habitat availability for wildlife and contributes to carbon emissions and climate change. water extraction for irrigation, industry, and domestic use can deplete freshwater ecosystems, leading to habitat loss and fragmentation and threatening aquatic biodiversity. unsustainable resource exploitation not only diminishes the capacity of ecosystems to provide goods and services but also undermines the livelihoods and well-being of human communities that depend on them [9]. anthropogenic activities pose significant threats to biodiversity and ecological integrity, with farreaching implications for ecosystem goods and services. habitat destruction and fragmentation, pollution, climate change, and unsustainable resource exploitation jeopardize the resilience and functionality of ecosystems worldwide. addressing these threats requires concerted efforts to mitigate the impacts of anthropogenic activities and promote sustainable management and conservation of natural resources. by evaluating the impacts of anthropogenic activities on ecosystem goods and services, policymakers, conservation practitioners, and resource managers can develop effective strategies for safeguarding biodiversity and ecosystem integrity and ensuring the sustainable provision of goods and services for present and future generations. conclusion in conclusion, the evaluation of anthropogenic impacts on ecosystem goods and services underscores the urgent need for proactive conservation and sustainable management strategies. anthropogenic activities such as habitat destruction, pollution, climate change, and unsustainable resource exploitation pose significant threats to biodiversity and ecological integrity, jeopardizing the provision of essential goods and services upon which human well-being depends. addressing these threats requires a multifaceted approach that integrates scientific research, policy development, and community engagement. by understanding the drivers and consequences of ecosystem change, policymakers, conservation practitioners, and resource managers can develop evidence-based strategies for mitigating the impacts of anthropogenic activities and promoting ecological resilience. furthermore, fostering collaboration among stakeholders, including governments, ngos, local communities, and indigenous peoples, is essential for implementing effective conservation measures and ensuring the sustainable use of natural resources. by working together to address the root causes american journal of business management, economics and banking volume 23 april 2024 p a g e | 141 www.americanjournal.org of ecosystem degradation and promote ecosystem recovery, we can safeguard biodiversity, enhance ecosystem services, and secure a sustainable future for generations to come. in essence, the evaluation of anthropogenic impacts on ecosystem goods and services serves as a call to action for collective efforts to protect and restore the natural world. by recognizing the value of biodiversity and ecosystem services, and taking decisive action to address the threats posed by human activities, we can forge a path towards a more resilient and sustainable relationship with the natural environment. references 1. foley, j. a., defries, r., asner, g. p., barford, c., bonan, g., carpenter, s. r., ... & snyder, p. k. (2005). global consequences of land use. science, 309(5734), 570-574. 2. turner, b. l., lambin, e. f., & reenberg, a. (2007). the emergence of land change science for global environmental change and sustainability. proceedings of the national academy of sciences, 104(52), 20666-20671. 3. carpenter, s. r., caraco, n. f., correll, d. l., howarth, r. w., sharpley, a. n., & smith, v. h. (1998). nonpoint pollution of surface waters with phosphorus and nitrogen. ecological applications, 8(3), 559-568. 4. parmesan, c., & yohe, g. (2003). a globally coherent fingerprint of climate change impacts across natural systems. nature, 421(6918), 37-42. 5. worm, b., barbier, e. b., beaumont, n., duffy, j. e., folke, c., halpern, b. s., ... & watson, r. (2006). impacts of biodiversity loss on ocean ecosystem services. science, 314(5800), 787-790. 6. millennium ecosystem assessment. (2005). ecosystems and human well-being: synthesis. island press. 7. cardinale, b. j., duffy, j. e., gonzalez, a., hooper, d. u., perrings, c., venail, p., ... & naeem, s. (2012). biodiversity loss and its impact on humanity. nature, 486(7401), 59-67. 8. díaz, s., pascual, u., stenseke, m., martín-lópez, b., watson, r. t., molnár, z., ... & shirayama, y. (2018). assessing nature's contributions to people. science, 359(6373), 270-272. 9. millennium ecosystem assessment. (2003). ecosystems and human well-being: a framework for assessment. island press. 10. гулямова, а. л., & гулямова, г. с. использование инновационных услуг в развитии розничной торговли банковской системы. 11. sabirovna, g. g. (2022). advantages and disadvantages of financial globalization. res militaris, 12(4), 2159-2163. 12. sirajiddinov, n. (2017). currency regime of uzbekistan: goals, consequences, ways to improve. international relations: politics, economics, law, 2017(1), 72-88. 13. capolupo, r., & jonung, l. (2008). the effects of the real exchange rate volatility and misalignments on foreign trade flows in uzbekistan. economics discussion paper, (2008-29). 14. ibragimov, m., ibragimov, r., & sirajiddinov, n. (2009). modeling and forecasting income tax revenue: the case of uzbekistan. economic forecasting. economic issues problems and perspectives, 213-227. 15. sirajiddinov, n. (2004). main stages of economic reforms in uzbekistan. centre for economic research. american journal of business management, economics and banking volume 23 april 2024 p a g e | 142 www.americanjournal.org 16. dilshod og, t. i., & maratovna, t. l. (2023). davlat iqtisodiyotini yangi bosqichga erishishida “islom bank” ining ahamiyati. новости образования: исследование в xxi веке, 1(7), 13-17. 17. абдужабборов, н., & ташпулатова, л. (2024). o'zbekiston iqtisodiyotini modernizatsiyalash sharoitida islom moliyasining o ‘rni. узбекистан–стратегия 2030 с точки зрения молодых ученых: экономика, политика и право, 1(1), 205-208. 18. бакоев, м. т., исмаилова, г. с., ташпулатова, л. м., & джураева, р. а. (2022). внедрение принципов эффективного государственного управления в интересах устойчивого развития в узбекистане. право и управление. xxi век, 17(4), 3-19. american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 1 www.americanjournal.org the effectiveness of the application of total quality management standards in achieving continuous improvement in educational institutions: an analytical study of a number of iraqi universities taicir moalla loukil laboratory of modeling and optimization for decisional industrial and logistic systems modils, faculty of economics and management sciences. sfax, tunisia. taicir.loukil@fsegs.usf.tn hasanain hadi saeed faculty of economics and management sciences. sfax, tunisia hasanianhadi@gmail.com a b s t r a c t k e y w o r d s higher education is considered the basic foundation for advancing the future of societies and achieving their ambitions and goals in various economic, political and social fields through the functions performed by its institutions. higher education institutions in our contemporary world are not only considered a field of teaching, but their functions have expanded to become centers for research and planning for the future and preparing specialized human resources to confront... the needs of current and future social and economic development programs. the function of higher education institutions does not stop at merely preparing the human resources necessary for the comprehensive development process, but rather goes beyond raising the level of graduates’ performance and developing them to suit future development needs, in addition to contributing to providing solutions to current and future problems and facing the challenges and requirements of the times. disseminating knowledge and expanding its horizons. to achieve the objectives of the study, the researcher used the descriptive analytical method and the questionnaire as a tool for collecting information and data, which was applied to a sample. (310) questionnaire forms were randomly distributed to faculty members, employees, and quality assurance departments. (233) questionnaires were retrieved when the questionnaires were subjected to the auditing stage. it was found that there were two questionnaires that were not suitable for entry into the statistical analysis stage, so they were excluded, and thus the size of the research sample became (231) respondents from those targeted in the research. the data will be analyzed and processed statistically using the statistical program spss.v22. quality management, total quality management, total quality management standards, continuous improvement, study methodology, conclusions and recommendations, list of sources. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 2 www.americanjournal.org introduction: arab societies are currently witnessing many noticeable changes in various fields that force their administrative organizations to change their traditional methods of management and adopt modern administrative concepts if they want to achieve their goals efficiently and effectively. among these changes is the increase in global competition between productive institutions and the rapid technological development in the world in various fields, especially in communications, computers and laser technology. in addition to economic agreements between neighboring countries, the transformation of some undeveloped industrial countries into developed countries and the establishment of the new world order, and the changes that occur in companies such as merging or twinning companies, controlling other companies, and restructuring educational structures in institutions from centralization to decentralization. in addition to the social changes that occurred in the values, principles, and lifestyles of individuals. this requires achieving development and advancing scientific research, building scientifically qualified human resources in various types of leadership sciences, and leading society intellectually, socially, and politically. this leadership and leadership in building society will only be achieved with the presence of scientific and educational institutions that carry out their functions and achieve their goals in the required manner, according to the requirements and needs of society. where these institutions operate and their needs. from here it is clear that education is a set of processes that take place in order to train and develop the individual’s knowledge, skills and thinking through various educational institutions in order for the individual to fulfill his duties towards himself and towards the society in which he lives. therefore, arab societies have at the present time urged many noticeable changes in various fields that have forced their administrative organizations to change their traditional methods of management and adopt modern administrative concepts if they want to achieve their goals efficiently and effectively. among these changes is the increase in global competition between organizations and productive institutions, and rapid technological development. in the world in various fields, especially in communications and computers, in addition to economic agreements between developed countries. therefore, higher education is considered one of the important fields in life in which quality is carefully taken care of by all sectors of society because of the direct relationship between the quality of higher education, societal growth in general, and economic growth in particular. therefore, the focus has become to apply comprehensive quality standards as a starting point for continuous improvement in order to advance the level of high civilization. therefore, it was necessary to adopt some modern concepts that were concerned with aspects of improvement and development in various scientific and cognitive fields of education. total quality management is considered one of the most important modern concepts and methods that aim to develop the performance of learning organizations by building distinct cultural foundations within them, by establishing a comprehensive method for organizational development. therefore, advanced administrations find themselves from time to time facing challenges that force them to shift towards modern methods in the field of development and improvement in terms of building strategies that are concerned with applying modern standards, principles and methods to educational institutions and organizations, with the aim of raising them to high levels of performance and raising the efficiency of the service provided. (abdel-gawad, 2016, 2). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 3 www.americanjournal.org first: study problem improving the performance of university education institutions is a global concern in all countries of the world, and one of the most important characteristics that distinguishes any society from other societies is its ability to manage its vital institutions and programs, not only effectively and efficiently, but also fairly and innovatively. so that the size and quality of services in university education institutions are linked to the administrative system that makes the university’s mission the compass of movement through the guiding principles and university ethics. the success of any institution is the success of its management. hence the importance of the management of university education institutions’ commitment to a comprehensive philosophy of continuous improvement in order to reach comprehensive quality in universities, which requires participation from everyone to ensure the survival and continuity of universities, so most universities, educational institutions and higher administrations in iraq seek to adopt the concept of comprehensive quality management standards and this matter prompted that educational institution to develop its inputs and operations continuously, in order to work to improve performing its functions and linking it to its community in order to obtain the best outcomes in a shorter time and at a lower cost. total quality management in educational institutions is an administrative process that depends on a set of values and derives its energy from information that employs the talents of employees and invests their intellectual abilities in the various levels of education in a creative manner to ensure continuous improvement of the university’s performance. therefore, quality in education is the driving force required to advance the system. education forward effectively achieves its goals and mission (al-titi, 2011). therefore, the problem of the study is that the lack of these standards in iraqi universities will consequently lead to the outputs of those departments lacking the lowest levels of quality, which will leave its effects on the level of development, and through the presentation it is possible to formulate. the problem is in the following question: first: what is the extent of senior management’s commitment to applying comprehensive quality management standards in educational institutions in iraq? second: what is the impact of strategic planning for comprehensive quality management in improving the performance of iraqi educational institutions? third: does the participation of employees in applying comprehensive quality management standards in educational institutions in iraq contribute to the process of continuous improvement? fourth: what is the extent of the impact of training and education that would contribute to the process of continuous improvement of educational institutions fifth: does operations management contribute to the application of quality standards in educational institutions? sixth: what is the extent of the influence of effective leadership that would contribute to the process of continuous improvement in educational institutions? seventh: what is the extent of the impact of changing culture in educational institutions, which contributes to the process of continuous improvement of educational institutions eighth: does preventing errors contribute to the process of continuous improvement in educational institutions? american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 4 www.americanjournal.org second: the importance of the study. the importance of the quality of educational services receives great attention from senior administrations because of the benefits and mutual benefits it provides to its users of human resources. it is a preventive methodology that prevents errors from occurring and is treated according to scientific methods that take into account the capabilities and capabilities of educational institutions in order to achieve stability and excellence through the provision of creative and conscious human resources. to the labor market in terms of quality to improve performance. educational institutions have become more competitive at the present time at the local and international levels due to the quality of their educational services they provide, starting with the selection of students and education programs, all the way to conformity with the requirements of the contemporary work environment. the importance of the study in practical terms stems from the importance of the role. the role played by total quality management standards and their impact on improving organizations and their overall survival and continuity. as iraqi universities need, more than others, contemporary approaches and curricula that achieve high levels of performance, whether at the organizational or human level, in order to keep pace with rapid transformations and developments and be in harmony with the challenges and changes in the world and ways to deal with them, and then achieve the organization’s goals efficiently and effectively. third: objectives of the study the primary objective of this study is to try to identify the effectiveness of applying comprehensive quality management standards in educational institutions in iraq and the extent of the application of service quality in them. the objectives of the study can be summarized through the following: defining the concept of quality, managing it, and carrying out continuous improvement in higher education establishing standards for building and managing quality and continuous improvement in iraqi educational institutions -explaining the quality requirements in higher education and the obstacles to their implementation the quality of educational services is a process of integrated interaction between the outcomes of the educational process, including specializations, experiences, and accumulated knowledge, and the processes performed by different organizations in accordance with their philosophy and orientations. applying quality standards to educational services is often limited to reducing errors before they occur, as it gives institutions a solid scientific standing in achieving continuous improvement of their services. -learning about the experiences of some countries in the field of applying the comprehensive quality management system in higher education identifying the aspects of total quality management in higher education institutions. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 5 www.americanjournal.org fourth: study model default search scheme study hypotheses: in light of the research problem, the following hypotheses can be determined: first: the first main hypothesis: there is no significant correlation between comprehensive quality management standards and continuous improvement of educational institutions (universities). the following sub-hypotheses have emerged from it:| independent variables total quality management standards dependent variable strategic planning commitment of senior management employee participation training and education focus on operations effective leadership change the culture prevent errors continuous improvement in educational institutions source: prepared by the researcher based on administrative literature american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 6 www.americanjournal.org -there is no significant correlation between strategic planning and continuous improvement in educational institutions -there is no significant correlation between the commitment and support of senior management and the continuous improvement of educational institutions there is no significant correlation between employee participation and continuous improvement of educational institutions. -there is no significant correlation between training and continuous improvement of iraqi educational institutions. there is no significant correlation between focusing on operations and continuous improvement of iraqi educational institutions. there is no significant correlation between effective leadership and continuous improvement of iraqi educational institutions. -there is no significant correlation between culture change and continuous improvement in iraqi educational institutions. there is no significant correlation between preventing errors and continuous improvement of iraqi educational institutions. sixth: limitations of the study objective limits: the subject of scientific research was limited to studying the standards of total quality management through the dimensions represented (commitment and support of senior management, leadership, operations management, organizational culture, efficiency of employee performance, focus in the process, harmonious work teams, strategic dimension) of continuous improvement in iraqi universities spatial boundaries: the spatial boundaries of the study are represented in some universities (baghdad, babylon, alqadisiyah, al-mustansiriya) for the purpose of conducting the field aspect. these universities were chosen because of their distinguished scientific standing among iraqi universities and distinguished professors and employees who support the scientific movement and the labor market. seventh: tools for collecting information and data. the researcher will rely on the use of statistical methods (arithmetic mean, standard deviation, and percentage) of the questionnaire as the main tool (the five-point likert scale, which is one of the most widely used methods in the administrative and social sciences, which is characterized by accuracy and clarity in identifying options and the ability to choose alternatives, to obtain the data necessary to conduct statistical analyzes and determine their results with the aim of indicating the conclusions drawn from them as well as recommendations related to them. preface: the search for comprehensive quality in various fields of work was not the result of a specific period of time, but rather is a continuous and essential activity for the performance of societies and individuals, and the process of searching for quality has developed as a result of new circumstances and changing needs. most countries of the world have become interested in comprehensive quality as one of the pillars of modern management models that ensure adaptation to rapid changes, keeping pace with international and local variables and adapting to them, with the aim of continuous improvement and development and achieving the highest possible levels in practices, processes, results and services, and rely on the application of advanced methods of quality management (aladadi (2010 ad, p. 4). total quality management is considered one of the most important tools used american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 7 www.americanjournal.org by large organizations to overcome their competitors. what does it mean for an organization to produce the best goods or provide the best services while not respecting delivery dates, contract terms, and after-sales services (barakat, 2007, p. 22). the importance of total quality management is evident from the success achieved by japanese companies at the expense of american companies in the eighties of the twentieth century. as a result of its application of the concept of total quality management, the application of this concept in japanese companies has contributed to achieving a good reputation in the field of quality, and this is what prompted american companies and others to move at a rapid and rapid pace in applying the concept of total quality management. first: quality management the term quality is essentially an economic term that emerged based on industrial and technological competition between advanced industrial countries with the aim of monitoring production and gaining the confidence of the market and the buyer. (daoud, 2010, p. 20). quality is defined as: “the suitability of the product for use, that is, the ability to provide the best performance and truest qualities” (cge and akpobire, 2013, p106). quality is linguistically: he who is good at doing good in words or deeds and is good at something “will have a good fate” (ibrahim, p. 145). quality in the language means sound composition and mastery of workmanship, and “jad and ajad” ((i bring good)) (al-fayroozabadi 1994, p. 1215), and good is the opposite of bad, and “jad is good” meaning ((it became good)) (ibn manzur 1992, p. 411). and the quality of it in dhamma and fatha is good (al-fayoumi 2008, p. 76). the concept of quality goes back to the latin word qualities: it means the nature of the thing or person and the degree of its goodness. as for the word “quality,” from the origin of the language, it refers to “type” more specifically than the genus, and the thing may vary in types. the word “quality” expresses the presence of certain features and characteristics in the good or service. if these features are present, they satisfy the desires of those who buy it or use it. (al-taie et al. 2009, p. 56). a number of scholars and international organizations have defined quality, and each of them defined it as: deming refers to it as (compatibility with consumer needs and requirements, whatever they may be, and it also means continuous improvement in all activities and continuous reduction of losses and costs) (bukmish 2011, p. 14). second: historical development of quality concern about quality is ancient and began with the appearance of man on earth. as soon as ancient man chose the simple tools that he used from animal bones and stones, he would choose the best ones... that is, his choice would be based on quality. a look at ancient history shows us that the first country in the world to care about quality was iraq through king hammurabi when he placed his famous obelisk in the eighteenth century bc, which includes explicit texts emphasizing the necessity of paying attention to quality. the heavenly religions include clear and explicit references to quality, including our true islamic religion. attention to quality began in a scientific, systematic and precise manner with the outbreak of the industrial revolution in western european countries in 1776 ad with the invention of the steam engine by the scientist (james watt) and the entry of that machine into the fields of transportation and manufacturing. the arab-islamic civilization also provides us with abundant evidence in various fields of muslims’ interest in mastering work, products, and services and their existence. examples american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 8 www.americanjournal.org of these include (al-samarrai: 2012: 41): in irrigation engineering, the construction of streams, and the laying of canals, they had a long history in it, and it reached its peak during the era of the abbasids. during the time of the abbasids, iraq's irrigation reached the peak of its progress and prosperity, and was the source of well-being for the entire country. in the field of education, in the late abbasid era, the first school (university) appeared, which was al-mustansiriya university, which was opened by the abbasid caliph al-muntasir billah in the year 625 ad after its construction lasted 6 years and at a cost of seven hundred thousand dinars (al-haddad: 2009: p. 55), and which still stands tall with the beauty of its architecture. overlooking the bank of the tigris river, it was the first university to take care of and apply quality standards in its construction, its teachers, its students, its curricula, its library, and the provision of sufficient material supplies for its employees, including teachers, students, and workers. on the intellectual level, we find, for example, the scholar ibn khaldun saying in his introduction, “as much as the quality of education and the mastery of the teacher the learner will be the most skilled in the industry and achieve his mastery.” in the eighteenth century ad, with the emergence of the industrial revolution, which became an important event in modern human history, and to its results, part of the development in the concepts of quality and methods for dealing with it is attributed. third: the importance of quality: quality importance quality is considered of vital and strategic importance for the consumer and organizations of all activities and sizes, and it plays an important role in the strategy of competition in local, regional and global markets (mohamed nour 2008, p. 25). when the intensity of competition between companies increased, the trend towards globalization increased, as well as the invasion of foreign companies into global markets more and more as a result of the number the enormous profit opportunities available to them changed companies from their competitive priorities. after these companies were paying most of their attention to reducing production costs, the need for other goals through which the company could achieve excellence over its competitors appeared. thus, companies seeking excellence adopted the goal of quality, as they relied on focusing on production. high quality products to compete, increase market share and improve profitability the importance of quality for organizations can be explained through its impact in the following paragraphs: (al-haddad 2009, p. 21) 1. company reputation: company reputation the organization’s fame is derived from the level of quality with which it produces its products. this gives the organization a good reputation and the wide spread of its products. the failure of management to give sufficient attention to quality results in harming the organization’s reputation and possibly losing a large number of its customers (al-taie et al. 2009, p. 73). 2. legal responsibility for quality. the number of courts that consider cases of institutions that design products or provide services that are not good in their production or distribution is constantly increasing. therefore, every production or service institution is legally responsible for any damage that befalls the customer as a result of his use of these products. fourth: quality objectives successful organizations and institutions seek to achieve their goals by applying the quality system as an effective administrative system in the organization. organizations have divided quality goals or quality-related goals into types and classifications. there are two types of quality goals (al-sarawi 2014, p. 34) objectives that serve quality control: these are related to the standards that the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 9 www.americanjournal.org organization wishes to maintain. these standards are formulated at the level of the organization as a whole, using lower-level requirements related to distinctive characteristics such as safety and customer satisfaction. quality improvement goals: they are often limited to reducing errors and developing new products and services that satisfy customers more effectively. hence, both types of quality objectives can be classified into five categories: 1. objectives of the organization's external performance: includes markets, environment and society. 2. product or service performance objectives: these address the needs of customers and competition. 3. operations objectives: address the capabilities, effectiveness, and controllability of operations. 4. internal performance objectives: they address the organization’s ability, effectiveness, and extent of its response to changes and the work environment. 5. performance objectives for employees: addressing the skills, abilities, motivation, and development of employees. quality costs: quality costs: are all the costs paid by the producer or facility for the purposes of determining the level of quality attained by the product, controlling it, and evaluating the extent of conformity between the product specifications and the desires of the consumer. it can also be defined as the costs expended by the facility for the purposes of placing products and services in the hands of the consumer in line with with his requirements and desires. added to this is the value of failures resulting from failure to conform product specifications with quality requirements, whether at the internal or external level of the facility. it is noted that studying quality costs is one of the most important ideas included within total quality management. it integrates with any quality program implemented by production facilities. (al-hayari: 2016) many industrial or service institutions use four types of quality costs: prevention costs, performance costs, internal failure costs, and external failure costs. a definitional introduction and concept of total quality management:total quality management is one of the most important and important intellectual concepts and leading scientific and philosophical frameworks that has been widely used by specialists, researchers, administrators and academics who are particularly interested in developing and improving the expected performance in services provided in various fields. perhaps the concept of total quality management (tom) is one of the most administrative concepts that has many concepts, ideas, and definitions in every view, whether it is the view of a researcher, an academic, a specialist, an administrator, or others. it represents: “developing and maintaining the institution’s capabilities in order to improve quality on an ongoing basis, and to meet and exceed the beneficiary’s requirements, as well as searching for quality and applying it in any aspect of work, starting with identifying the beneficiary’s needs and ending with knowing the extent of the beneficiary’s satisfaction with the services provided to him,” and it can be defined. however, it exceeds the performance of making consumers happy through the work of managers and employees with each other in order to achieve or provide consumers with valuable quality by performing the right work in the right way, from the first time, and at all times. (al-samarrai: 2012) the concept of total quality management also expresses “a set of principles, methods, and skills that aim to continuously improve performance with regard to the organization’s processes, functions, products, services, and individuals, using financial and human resources, through commitment, discipline, and continuity to meet the needs and expectations of current and future customers and american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 10 www.americanjournal.org achieve their satisfaction” (abdullah, 2005). , p. 25). total quality is considered a management philosophy that aims to continuously improve the quality of products, services and processes, by focusing on customer needs and expectations, to enhance customer satisfaction and the performance of organizations (sadikoglu and olcay, 2014). researchers and writers have disagreed about a specific definition of the concept of total quality management, but they agree on some aspects of this concept, and these definitions include: the british quality organization (bqa) defines total quality management as the administrative philosophy of an organization through which it realizes both the needs of the consumer and the goals of the project together (radwan, 2012, p. 23). known as steven cohen and ronald bernard. total quality management means developing and maintaining the organization’s capabilities in order to continuously improve quality and meet and exceed the beneficiary’s requirements, as well as searching for and applying it in any aspect of work, starting with identifying customer needs and ending with knowing the extent of the beneficiary’s satisfaction with the services and products provided to him, as for edward demenig. (edward deming) defined it as: a management philosophy based on customer satisfaction and achieving his needs and expectations, present and future. by analyzing the three words that make up total quality management, we find that: (al-karawi: 2016: p. 89) management: it is the activity and art of exercising planning, organizing, controlling, and other functions. quality: the degree of excellence provided by a product or service. comprehensive: includes all parts and components. thus, comprehensive management is the art of managing all parts and components of the organization in order to achieve excellence and comprehensive quality. it is defined as a philosophy and a set of principles that represent the basis for the organization that pursues continuous improvement, which is the application of quantitative methods and the effective use of human resources within the framework of the organization in order to meet the needs of... customers and more, current and future.(manachehri;2014) figure no. (2-1) shows the most important trends in which the concept of total quality management is reflected. management quality total source: (al-khatib: 2006: p. 110) the form of trends in which the concept of total quality management is reflected. the importance of total quality management: the importance of total quality management can be summarized in the following points (faisal 2009, p. 28): improving productivity, increasing productivity, reducing costs and increasing profitability as integrated goals. it includes all parts of the organization and all employees product quality, service quality, process quality, social responsibility quality it starts with senior management and ends with all employees american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 11 www.americanjournal.org enabling management to study customer needs and meet those needs. obtaining some international certificates such as iso 9000 and others. participate in making decisions and solving problems easily. strengthening cohesion and coordination between the facility’s departments as a whole. overcoming obstacles that hinder employee performance in providing high-quality products. developing a sense of group unity, team work, and interdependence between individuals and feelings belonging in the work environment. -providing more clarity to workers as well as providing feedback to them and building confidence among members of the organization as a whole. objectives of total quality management: total quality management aims to develop the quality of products or services while reducing costs, which improves customer service and meets their needs. the objectives of total quality management are summarized in the following: (aqili 2009, p. 41). understanding the client’s current needs and desires, anticipating his future desires, and working to achieve them continuous cost reduction through improving quality and reducing the rate of waste and spoilage in operations. -achieving greater flexibility to face changes in customer needs, the labor market, and the environment surrounding the organization (mohamed nour 2008, p. 101). developing the performance of all employees by developing the spirit of collective cooperative work with the aim of benefiting from all the energies and all employees in the facility (al-qahtani 2011, p. 38). pioneers of total quality management: edward deming: he is considered the father who led the total quality management revolution, as he made many meaningful contributions to the development of quality in the united states and japan through the application of statistical control maps. he focused on the need for the organization to reduce the deviations that occur during work. he was awarded the walter shewart medal by the american government in the year 1956. his contributions greatly influenced the west. the united states of america has established a quality award called the deming quality award. his philosophy was directed towards the administrative process and he focused on the importance of reducing variation in the process and established two types of causes for this variation, general and specific. (naidu: babu 2006 p33). deming proposed a continuous cycle of activities called the deming cycle or wheel, which represents the framework of the continuous improvement process and consists of four continuous stages, which are (al-naimi et al. 2009, p. 50): 1. plan: in this stage, the process is studied, problems are identified, and how to solve them is planned. 2. do: do in this stage, the plan is implemented, improvement is measured, and results are documented. 3. examine: study in this stage, the plan is evaluated to confirm whether it achieves the goals established in the first stage, and to confirm whether it reveals new problems. 4. execute: act here, part of the natural process is carried out, then the process returns to the first stage in order to start the cycle again to verify the emergence of new problems and thus develop plans to solve them. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 12 www.americanjournal.org joseph juran he is considered the first quality teacher in the world and one of the first engineers. he contributed greatly to quality management during world war ii, as he focused mainly on wasted time and defects and errors during the production process. in 1951, juran published his most famous book, entitled quality control handbook. one of his most important contributions is the juran quality triangle, which includes three stages: the quality planning stage, the quality control stage, and the quality improvement stage. (abdul rahman: 2018: p. 62) juran also summarized his ideas about quality in ten points, as follows: 1.-building awareness of opportunities and necessity for improvement. 2.-determine the objectives of the improvement process. 3.organizing to reach goals (establishing a quality council, identifying problems, selecting projects, appointing teams, appointing facilitators). 4.providing training. 5-. interest in implementing projects that help the organization solve its problems. 6.-attention to submitting reports on the organization’s performance. 7.-encouraging employees and urging them to improve performance by appreciating their work. 8.paying attention to the communication process between the organization’s departments and to feedback. 9.maintaining the level. expanding the construction of continuous improvement and making it part of the organization’s system and operations. oakland 2003 p19) -philip crosby crosby is considered one of the most famous pioneers in the field and methods of development, as he focused on total quality management by emphasizing outputs, by reducing defects in performance. he was the first to advocate the idea of zero defects. which contradicts the idea of acceptable levels of quality and permissible percentages of errors and defects. crosby emphasized the importance of senior management in supporting quality and achieving a high level of it. he also considered the basic performance criterion to be “zero defects,” meaning the absence of any errors. crosby divided the costs into two categories: acceptable costs, which are those costs that contributed to improving the level of quality, and unacceptable costs, which are those that were spent and did not achieve the required level of quality (jawda, 2004, p. 53). crosby is famous for four basic principles in total quality management: 1. the definition of quality is consistent with meeting the customer’s needs. 2. quality is achieved through prevention rather than performance evaluation. 3. the standard for quality performance is “zero defects”, that is, perfecting the work from the first time. 4. quality is measured by the price achieved from non-compliance with standards and not by specific indicators. total quality management standards: 1strategic planning 2commitment of senior management 3participation of employees in the organization 4training and education 5focus on operations american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 13 www.americanjournal.org 6effective leadership 7changing the culture 8prevent errors total quality management is a customer-focused process that aims to continuously improve business processes, and strives to ensure that all employees work towards common goals of improving the quality of the product or service provided, as well as improving established procedures for production. particular emphasis is placed on fact-based decision making, using performance metrics to monitor progress; comprehensive quality standards are defined as: a set of characteristics, attributes, and specifications that are required to be available in the organization’s complete system. with the aim of achieving comprehensive quality, knowing that these qualities and characteristics include: the extent of preparing the environment, the appropriate climate, and determining the requirements needed by the client, or the beneficiary of the organization’s work, in addition to planning for the quality of goals, and the quality of both management, plans, and program content in the organization, determine the quality of the institutional staff, and the suitability of the facility to work requirements. therefore, there is no single set of accepted standards for total quality management, and likewise there are no specific standards for implementing the methods and tools of total quality management. therefore, organizations are free to use the standards they deem appropriate to implement their system. therefore, the opinions of some writers on comprehensive quality standards in organizations will be clarified through table (1) shown. (al-rubaie, et al.: 2018, p. 61) total quality management standards in organizations. author total quality management standards european quality awrd (eqa) leadership/strategic policy/employee engagement/operations management/top management commitment/work environment/communication/culture/suppliers/training/ malcolm baldrige leadership / information analysis / strategic planning / use of human resources / ensuring quality of services / achieving customer satisfaction deming education and training/organizational policy/commitment of senior management/formation of work teams/communication and communication/leadership/future plans/ gulf quality mangerial award (gqma) communication / management commitment / leadership / strategic plans / work environment / training and learning / development / resources / work teams. tamimi, communication/senior management commitment/education and training supplier relationship management black:porter, customer relationship management/partnership with suppliers/communication and communications/work teams/quality planning/quality culture american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 14 www.americanjournal.org the source was prepared by the researcher with reference to other sources al-khatib (2008: p. 114) al-otaibi (p. 32: 2010). strategic planning: strategic planning is a major process for determining the efficiency of operations, and it also contains multiple strategic complexities because it determines the organization’s competitive priorities with regard to operations capacity, flexibility, and cost. in addition to the quality of work life and the image of the customer, and through strategic planning, the organization can be helped in achieving a low-cost strategy, rapid response, or any other strategy. (heizer & render 2008: 342). total quality management adopts strategic planning as a means of unifying activities towards a specific goal. planning for total quality management is a strategy that is derived from business strategy planning, through which the organization’s mission, goals, and means to achieve those goals are determined. and the strategic plan it must provide a feature that supports the organization's competitive advantage through innovation, innovation, and non-acceptance of the status quo (linde: 2020, p. 68). commitment of senior management: the importance of supporting senior management is not limited to merely allocating the necessary resources, but extends to the organization setting a set of priorities. if the organization’s senior management is unable in its long-term commitment to support the program, it will not succeed in implementing total quality management, and decisions related to quality it is one of the strategic decisions, and therefore the commitment of senior management is the most important basis for the success of the total quality management system (al-sarawi 2014, p. 96) participation of workers in the organization: participation and delegation of authority to workers means activating their role in a way that makes them feel important and achieving actual benefit from their capabilities. the intended participation here is substantive, not formal, participation, as it is necessary for participation to achieve two things: first. it increases the possibility of designing a better plan. second, it improves the efficiency of decision-making through the participation of thinking minds, which is the key to business problems. delegating authority does not only mean the participation of individuals, but rather their participation must be in a way that gives them a real voice through work structures and allows workers to make decisions that are concerned with improving work within their own departments. the success of total quality management depends on the participation of employees in the organization with senior management in making decisions. and carrying out work, which makes individuals feel their importance and contribution to the implementation and success of work because they will consider it a success for themselves. (al-qahtani 2011, p. 40). training and education: education and training for all employees is the basis for continuous quality improvement. the organization must provide appropriate training for everyone, each in his specialty, and the education must be continuous. education and training raise the level of their ability to perform joseph, et.al supplier relationship management/quality policy/training technology/organizational compliance/human resources management supplier relationship management. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 15 www.americanjournal.org their jobs. thus, only very few errors appear to us and we guarantee quality. free from defects (alnaimi et al. 2009, p. 54) focus on operations: the modern trend emphasizes the importance of the operations manager, as operations management has become a reality that everyone must understand and realize, and it has become the basis through which the customer decides to accept or reject the products of that organization. the process is a group of interconnected or interacting activities that transform inputs into outputs. in order for the organization to achieve a high level of quality in its products, this may require partially or completely redesigning the processes so that the processes are consistent with the requirements of total quality management. (jawda 2009, p. 50) effective leadership: effective leadership is the process of creating a long-term vision, formulating goals, developing strategies, achieving cooperation and influencing others, and mobilizing enthusiasm to work to achieve goals. leadership within the concept of total quality management means the ability to motivate and encourage individuals to have the desire and ability to achieve goals. (al-azzawi: 2008: 65) changing the culture: the big dilemma in quality management is spreading awareness of the importance of quality among all employees and motivating them to improve it. according to the principles of total quality management, every worker should participate in making total quality improvements, starting with the manager who seeks to achieve savings in production and sales representatives who learn methods for discovering customer needs. in other words, (tqm includes all functions related to the good or service. therefore, every individual in the organization should view quality as an end in itself, and that errors and defects should be discovered and corrected from the source before they pass to the customer. this philosophy is called (source quality). (al-najjar, and others: 2010:280). preventing errors: the philosophy of total quality management is based on the principle that quality is the result of the prevention process and not the inspection process. in traditional management theories, we find that quality control or inspection at the level of goods and services takes place after the manufacturing process or service provision. this method mobilizes a lot of human energies and financial resources in order to detect defects or errors in the production process. however, in the case of applying total quality management, this will lead to reducing costs and increasing profitability by introducing an element of prevention into the production process by monitoring deviations of various kinds and trying to correct them in time to avoid falling into error. these deviations (al-muhaidib, 2015: p. 38). continuous improvement arose: the roots of continuous improvement go back to (kaizen), which means change towards (better) or (better). it is a word consisting of two syllables in the japanese language, as it has been adopted by a number of industrial companies for the purpose of achieving continuous reduction in production costs and achieving competitive advantage by making improvements in a way that... gradual and simple reforms in the operational activities that production units go through, especially since the main goal of its use is limited to reducing costs and amounts spent during the year at agreed upon rates. in order for this to be achieved, it is preferable to take into consideration when conducting continuous improvement processes, reducing the costs of activities that do not add value and eliminating them. those that do not add value and the costs of loss, damage, and reductions can be achieved by american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 16 www.americanjournal.org shortening the time it takes to manufacture the product because this contributes to trying to achieve the required goals (hilton, 2005: p234). the concept of continuous improvement: continuous improvement is an administrative philosophy that seeks to work on developing processes and activities related to machines, materials, individuals, and production methods on an ongoing basis (ahmed, 2008, p. 181). continuous improvement is defined as “a method of strategic cost management and is considered one of the administrative methods according to which managers and workers are committed to the related aspects.” quality, cost and time.” he defined kaizen as “a japanese term that refers to the gradual and continuous improvement to reduce the costs of an existing product through the manufacturing stage of the product’s life cycle” (hilton, 2008: p265). the goal and mechanism of continuous improvement: the goal of continuous improvement is to reach the highest level of efficiency in production or service by making continuous improvements in the company’s production processes or service, especially since the difficulty in achieving this goal requires following the following: (sharqi: 2017: p. 32) 1. using benchmarking technology, through which one can search for the best applications and practices in the field of industry among competing companies in a way that is reflected in achieving the best performance, which is the essence of the continuous improvement process. 2. monitoring and controlling operations through the use of some measures, such as reducing the percentage of spoilage and reducing the product turnover time, as well as the use of control maps. 3. improving processes efficiently and effectively, with the ability to modify them, as well as the ability to search for sources of problems that hinder these processes. 4. continuous examination of activities and processes that do not add value with the aim of reducing or eliminating them. 5. anticipate the customer’s needs to make improvements gradually to achieve his satisfaction. continuous improvement in university education institutions:the importance of university education has increased in light of the concepts and applications presented by globalization, which are enhanced by the rapid developments of communication and information systems. this has led to pivotal transformations towards adapting to the knowledge society, and competition has moved from companies to universities, causing them to rethink their strategies, systems, and everything that might affect its capabilities to be able to enter the global competition with strength (bani ahmed, 2015, p. 103), and continuous improvement is essential in all productive and service organizations, including the university, because it contributes effectively to making the organization in a state of continuous superiority and distinction. it is a continuous, renewed work with a comprehensive dimension in which it participates. all employees at administrative levels, all al-obaidi. the most important rule in continuous improvement is the organization’s ability to achieve distinguished quality in its operations and products, and organizational knowledge is the basis for continuous improvement, as it is the main determinant of quality (al-tawil et al., 2010, p. 6). previous studies (arabic and english) arabic studies – hayat bin muhammad bin saad’s (2004) study of comprehensive quality management as an approach to the development of saudi universities (a study of the trends of the saudi academic body towards applying its principles, and their point of view on the extent to which this application contributes to american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 17 www.americanjournal.org the development of the university). the study reached many results, the most important of which are: the trends of the body tended the academic study sample agreed to an above average degree on the application of the principles of total quality management in saudi universities. the principles of strategic planning for quality, effective leadership, and continuous education and training were at the forefront of the principles that the study sample agreed to apply in saudi universities to an above average degree. the study sample agreed that applying the principles of total quality management contribute to the development of saudi universities to an above-average degree. the principle of effective leadership and the principle of strategic planning were at the forefront of the principles that the study sample unanimously agreed on in their contribution to developing the university to an above average degree. study recommendations: in light of the results reached, the study presented many recommendations in order to contribute to adopting and consolidating the total quality management method. in saudi universities study by amir muhammad zaki (2012) the role of comprehensive quality standards in the development of educational institutions. through the descriptive approach based on collecting studies, reports, periodicals and books, the study concluded that the research hypothesis, which states that comprehensive quality standards have an effective role in developing educational institutions and preparing qualified cadres for markets the work has been achieved. the researcher also came up with an integrated proposed vision of the main aspects that any educational institution should consider with interest, so that it can identify the places of progress and defects in the comprehensive quality system within the educational institution. the researcher also recommends developing an integrated strategy for comprehensive quality, by defining quality objectives. comprehensive and formulating the necessary policies and procedures for this, and emphasizing the importance of continuous monitoring, follow-up and evaluation of the established plan to ensure that what was planned is implemented efficiently and effectively. english studies study by juha kettunen 2011) “strategy and quality maps in higher education”: the purpose of this study is to develop conceptual frameworks for the integration of strategic management and quality assurance in higher education institutions. it was exposed to the possibility of describing the value chain in strategy and quality maps as two graphical representations, respectively, of the strategic plan and the quality assurance system. the results showed that the strategic map is a graphical representation of the strategic plan that describes the views of the balanced scorecard, the strategic objectives, and the links between them. from it we can conclude that the quality cycle is directly linked to internal processes and customer perspectives, because management develops processes and faculty plans and implements education and feedback, but it indirectly corresponds to the financial and organizational learning perspectives of the balanced scorecard. study (fauzi hussin muhammad naveed jabbar 2019) “quality management as a strategic tool to enhance the relationship between leaders’ behavior and job satisfaction”: the study aimed to determine the interrelated role of service quality management on the relationship between leadership behavior and job satisfaction. the study is quantitative in nature. public university lecturers in punjab, pakistan were the population of this study. 396 public university lecturers were selected as a sample from public universities in pakistan, and a stratified random sampling technique was adopted to collect data. a proportional percentage of 15% was adopted to select the study sample, and a survey method was used to collect data from respondents via a questionnaire. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 18 www.americanjournal.org the third section: study methodology (statistical analysis) introduction: the current study aimed to demonstrate (the effectiveness of applying comprehensive quality management standards in achieving continuous improvement in educational institutions). accordingly, in this chapter, the procedures and methodological steps that were taken in the field of field study will be presented, and the study population and the sample to which the study was applied will be presented, in addition to "to clarify the tools used in the study, its steps, methodology, and the statistical methods that were used to analyze the data. description of the research population and sample: description of the research sample the study population consists of all faculty members, employees, and quality assurance departments in iraqi universities, which are (university of mosul, al-mustansiriya university, university of karbala, university of the legacy of the prophets, al-safwa university, al-qadisiyah university), and the size of the sample population was determined randomly for the universities studied, as the selection process for the sample was carried out through the vision of achieving the research objectives, based on the nature of the study and the objectives that it seeks to achieve, which are to identify ((the effectiveness of applying comprehensive quality management standards in achieving continuous improvement in educational institutions)). the process of selecting (233) teaching staff and employees was carried out by simple random sampling in order to survey their opinions regarding what is related to the research topic. (310) questionnaire forms were distributed randomly to faculty members, employees, and quality assurance departments. (233) questionnaires were retrieved when the questionnaires were subjected. during the audit stage, it was found that there were two questionnaires that were not suitable for entering the statistical analysis stage, so they were excluded. thus, the size of the research sample became (231) respondents from those targeted in the research. tests the validity and reliability of the questionnaire the following tests were conducted on the questionnaire to verify its validity and reliability, as follows: 1. testing the validity of the questionnaire aapparent honesty the concept of honesty represents one of the necessary foundations for building any scale, and apparent honesty is one of the most important of these standards, which lies in presenting the items of the scale to a group of experts and arbitrators. to achieve this principle, the questionnaire was presented to a number of gentlemen arbitrators and specialists, numbering 5 (arbitrators, whose names are indicated). in appendix (), those who submitted their comments and opinions, in order to make the questionnaire more appropriate to the desired objectives of the research, and most of their opinions and comments were taken into account regarding adding or deleting what they deemed appropriate. bcontent veracity in order to test the validity of the questionnaire’s content, this criterion was calculated according to the end-to-end comparison method by finding the total of its questions and arranging them in ascending order and dividing them into two parts: the upper part and the lower part. (27%) was taken from the upper end, and (27%) was taken from the lower end’s data. the averages of the two parties were compared by testing the difference between the averages of the two parties, and the results of the statistical analysis showed that there is a significant difference between the averages of the upper and lower parties, because the calculated t value of (8.998) is greater than its tabulated counterpart of (980.1) at a significant level ( 05.0) and degree of freedom (122). this american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 19 www.americanjournal.org indicates that the scale is valid, meaning that it is able to distinguish between answers with large values and answers with small values. c confirmatory construct validity to verify the structural validity of the questionnaire, confirmatory factor analysis of the scale adopted in measuring the main and sub-variables was adopted to ensure the validity of the theoretical constructs of the variables and their accuracy in the field, as it is the most prominent statistical method used in evaluating the ability of the factor model to express the actual data set in comparison between factor models in this field using... confirmatory factor analysis (cfa), this method is done by finding several criteria and indicators that must be achieved. aconfirmatory construct validity of the comprehensive quality management criteria variable confirmatory factor validity for the total quality management standards variable was conducted using the ready-made program (amos v.24) and the results were obtained as in table (2), which shows the model conformity indicators adopted in the confirmatory factor analysis for the total quality management standards variable. table (2) shows the conformity indicators for the comprehensive quality management standards model the value optimal range indicator 7620.591 to be moral chi-square value 1770 any value degree of freedom 4.30 do not exceed (5) good the ratio of chi-square to degree of freedom 0.93 ranges between (0.9 – 1) cfi comparative conformity index 0.95 ranges between (0.9 – 1) tli toker-lewis indicator 0.04 ranges between (0 0.08) rmsea is the root mean square error of approximation sarce :everitt, brian s,(2010), " multivariable modeling and multivariariate analysis for the behavioral sciences", crc bress, taylar& francis,6000, broken,sound barkway nw, suite 300,boce raton,usa,211. from observing the table above, it is clear that the total quality management criteria variable has achieved all the required standards. therefore, the factor analysis can be conducted according to the maximum potential method, as the results of the factor analysis through the use of the two programs (spss v.24) and (amos v.24) were as they are. shown in table (3) table (3) shows the results of the factor analysis of the short management scale scale paragraphs factor saturations american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 20 www.americanjournal.org first factor second factor third factor fourth factor fifth factor sixth factor seventh factor eighth factor strategic planning 1 0.63 2 0.34 3 0.65 4 0.49 5 0.58 6 0.43 7 0.76 commitment of senior management 1 0.54 2 0.39 3 0.80 4 0.61 5 0.71 6 0.43 7 0.39 8 0.73 employee participation 1 0.58 2 0.61 3 0.66 4 0.42 5 0.61 6 0.70 7 0.59 8 0.71 training and education 1 0.38 2 0.44 3 0.35 4 0.55 5 0.51 6 0.39 7 0.50 focus on operations 1 0.72 2 0.77 3 0.61 4 0.76 5 0.59 6 0.64 1 0.81 2 0.76 3 0.39 4 0.57 5 0.62 6 0.60 7 0.73 change the culture 1 0.49 2 0.43 3 0.52 4 0.47 5 0.69 6 0.41 7 0.53 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 21 www.americanjournal.org 8 0.60 9 0.51 prevent errors 1 0.75 2 0.83 3 0.69 4 0.77 5 0.80 6 0.58 7 0.78 8 0.66 the value of the latent root 19.670 2.770 2.276 1.883 1.780 1.593 1.498 1.258 percentage of variance explained 42.784 4.617 3.793 3.139 2.967 2.655 2.496 2.096 percentage of cumulative variance explained 42.784 47.401 51.194 54.333 57.300 59.955 62.451 64.548 through table (3) of the confirmatory factor analysis, there are (8) factors for the variable of comprehensive quality management standards, and there are (8) subparagraphs (questions) for each of the dimensions (senior management commitment, employee participation, error prevention), and there are also ( 7) sub-paragraphs (questions) for each of the dimensions (strategic planning, training and education, effective leadership), and there are (9) sub-paragraphs or questions for the culture change dimension, while there were (6) sub-questions or paragraphs for the dimension (focus on operations). ) within the comprehensive quality management standards variable out of the 60 items contained in that measure. note that all items achieved acceptance due to the fact that their saturation with the main variable exceeded (0.30), and this exploration is consistent with the assumptions of previous literature regarding the dimensions of this scale. it is also noted from the table that the values of the latent roots achieved by each factor exceed the correct one and are identical to the previous hypotheses. as for the value of the total variance explained, the six factors together were able to explain a percentage of variance amounting to (64.375%), which is a percentage that approached two-thirds of the total variance and this. a good indicator is provided by factor analysis to support the construction of this scale. confirmatory construct validity of the continuous improvement variable in order to adopt a variable measure of continuous improvement, the indicators mentioned previously were calculated as follows: table (4) conformity indicators for the continuous improvement model indicator optimum range the value chi-square value to be moral 321.42 degree of freedom any value 66 the ratio of chi-square to degree of freedom do not exceed (5) good 4.87 cfi comparative conformity index ranges between (0.9 – 1) 0.94 tli toker-lewis indicator ranges between (0.9 – 1) 0.97 rmsea is the root mean square error of approximation ranges between (0 0.08) 0.06 from observing the table above, it is clear that the continuous improvement variable has achieved all the required standards. therefore, the factor analysis can be conducted according to the maximum potential method, as the results of the factor analysis were as shown in table (5). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 22 www.americanjournal.org table (5) shows the results of the factor analysis of the continuous improvement scale paragraphs the scale factor saturation continuous improvement 1 0.53 2 0.58 3 0.66 4 0.46 5 0.52 6 0.62 7 0.39 8 0.48 9 0.46 10 0.63 11 0.58 12 0.60 the value of the latent root 9.037 percentage of variance explained 50.147 percentage of cumulative variance explained 50.147 from table (5) of confirmatory factor analysis, there is one factor represented by the continuous improvement variable, and this main factor contained twelve items or questions. note that all items have achieved acceptance because their saturations exceeded (0.30), and this exploration is consistent with the assumptions of previous literature regarding the dimensions of this scale. it is also noted from the table above that the value of the latent root achieved by the worker exceeds the correct one and is identical to the previous hypotheses. as for the value of the total variance explained, the worker was able to explain a percentage of variance that slightly exceeded half of the total variance (50.147%) of the total variance, and this is a fairly good indicator. what does factor analysis provide to support the construction of this scale? 2. reliability of the questionnaire the concept of reliability refers to the extent of consistency in the results of the scale, as the strength of the reliability in the questionnaire indicates the closeness or equality of the results of application in two different time periods on the same individuals targeted in the research. the greater the value of the reliability coefficient (0.70), this indicates stability and reliability of the results. for this research, the reliability coefficient was calculated according to two methods: athe half-split method the questionnaire's (72) items were divided (of course, demographic or general information is not included by consistency) into two equal homogeneous halves, and for all (231) questionnaires, the first half included the odd items, while the second half included the even items, and by calculating the pearson correlation coefficient between the two halves was (864.0), and using the corrective spearman-brown equation, the value of the reliability coefficient according to the half-splitting method was (85.0) for the first half and (81.0) for the second half. these are very good reliability values that call for adopting and generalizing the research results. in future studies. btest and retest method this method depends on the consistency of the answers of the same respondent from one paragraph to another. a deliberate sample of respondents was used, amounting to (57) respondents whose opinions were polled on the research topic. the american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 23 www.americanjournal.org questionnaire was returned to them after a period of three weeks, and then the cronbach’s alpha coefficient was calculated for each axis. of the questionnaire’s axes, in addition to the general reliability coefficient for all questionnaire items. the test results showed that the value of the reliability coefficient (cronbach’s alpha) reached (84.0), which is a very good percentage that confirms the adoption of these results in this research and subsequent future studies. table (6) shows the value of the reliability coefficient for the research resolution. table (6) shows the value of the reliability coefficient for the research questionnaire questionnaire variables value of cronbach’s alpha coefficient total quality management standards 0.87 continuous improvement 0.85 total 0.84 3analysis of reliability and validity of the dimensions of comprehensive quality management standards it represents an analysis of the internal consistency of the data and ranges between (0-1), as the value of the (cronbach’s alpha) coefficient was calculated to determine the extent of internal consistency of the dimensions of comprehensive quality management standards, given that the value of the reliability coefficient must be (0.70) or more. to move forward, rely on the results that will result from the research, according to the criteria (cr) (ave) (msv) and (asv) and as in the following table table (7) shows the results of the network analysis and the validity of the dimensions of the comprehensive quality management standards variable msv greatest common variance asv adjusted covariance ave average variance extracted cr composite stability coefficient the dimension 0.513 0.658 0.748 0.822 strategic planning 0.446 0.532 0.607 0.718 commitment of senior management 0.487 0.535 0.665 0.790 employee participation 0.509 0.633 0.729 0.812 training and education 0.471 0.588 0.641 0.749 focus on operations 0.489 0.539 0.644 0.761 effective leadership 0.456 0.599 0.687 0.801 change the culture 0.428 0.5305 0.624 0.781 prevent errors it is clear from the table above that all reliability (cr) values are greater than (0.70), and the standard indicators for all dimensions range in value between (0 1), which indicates the presence of reliability or validity through which the course of statistical analysis of the comprehensive quality management standards variable can be completed later. 4network analysis and validity of the continuous improvement variable. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 24 www.americanjournal.org it represents an analysis of the internal consistency of the data and ranges between (0 – 1), as the value of the (cronbach’s alpha) coefficient was calculated to determine the extent of the internal consistency of the continuous improvement variable, given that the value of the reliability coefficient must be (0.70) or more to move forward with relying on the results that will result from the research, according to the criteria (cr) (ave) (msv) and (asv) and as in the following table table 8: results of network analysis and validity for dimensions of continuous improvement msv greatest common variance asv adjusted covariance asv average variance extracted cr composite stability coefficient the dimension 0.544 0.630 0.779 0.852 organizational culture it is clear from the table above that all reliability (cr) values are greater than (0.70), and the standard indicators for the continuous improvement variable range in value from (0 – 1), which indicates the presence of reliability or validity through which the course of statistical analysis of the continuous improvement variable can be completed. first: testing the hypotheses of the correlation between the investigated variables. 1the first main hypothesis of the research: “there is no significant correlation between comprehensive quality management standards and continuous improvement.” in order to make a decision on the first main hypothesis of the research, which consists of eight subhypotheses, the relationship will be found by calculating the spearman correlation coefficient for the rank correlation between each dimension of the total quality management standards (strategic planning, senior management commitment, employee participation, training and education, focus on... operations, effective leadership, culture change, error prevention) and the continuous improvement variable, and then test that relationship by using the t-test to show the significance of the correlation coefficients calculated via the statistical program (spss), as shown in table (30), and the interpretation of the results is as follows: table (9) values of the spearman correlation coefficient and the (t) test for the significance of the relationship between the dimensions of comprehensive quality management standards and the continuous improvement variable y x dimensions of total quality management standards spearman correlation coefficient ( r ) calculated t value the significance continuous improvement strategic planning 0.577 ** 10.690 morally significant commitment of senior management 0.623** 12.052 morally significant employee participation 0.527** 9.383 morally significant training and education 0.497** 8.667 morally significant focus on operations 0.596** 11.231 morally significant effective leadership 0.628** 14.111 morally significant american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 25 www.americanjournal.org change the culture 0.655** 13.117 morally significant prevent errors 0.741** 16.698 morally significant total comprehensive quality management standards 0,753** 17.317 morally significant the tabular (t) value is at a significance level of (05.0) and a degree of freedom (229) = 1.970 the tabular t value is at a significance level of 0.01 and a degree of freedom of 229 = 2.597. )*(significant effect at a significance level of 0.05. )**(significant effect at a significance level of 0.01. when testing the overall correlation relationship between the total quality management standards variable and the continuous improvement variable, the results shown in table (30) showed that the value of the spearman correlation coefficient between the two variables reached (753.0), which is a positive value that reflects the presence of a strong direct relationship with significant significance at a significant level ( 05.0) and (0.01) due to the fact that the calculated (t) value of (17.317) is greater than its tabulated counterpart of (1.970) and (2.597) respectively at the same significance levels (05.0) and (0.01). the interpretation of this result indicates that paying attention to the dimensions of comprehensive quality management standards in the universities under research and developing them as a whole will lead to raising the efficiency of continuous improvement in them and vice versa. thus, the first main hypothesis of the research is rejected and its alternative hypothesis is accepted, which states: “there is a significant correlation between comprehensive quality management standards and improvement.” "continuous" conclusions and recommendations conclusions: 1 the investigated universities must generally pay attention to all dimensions. therefore, iraqi universities must work in the future to improve their reality and develop and improve their internal systems for the purpose of raising the level of quality of job performance, especially (employee participation, training and education, as well as effective leadership), and to further advance all dimensions and make them to the optimum degree. in the future. 2-quality management standards work by adopting best practices to improve performance in iraqi universities, based on a regulatory environment based on facts and realism in collecting and analyzing data, making it a sound basis for making and making decisions, and by using them in an integrated and highly effective manner, which allows for the embodiment of more opportunities for continuous improvement of educational institutions. 3 the investigated universities must generally pay attention to all dimensions. therefore, iraqi universities must work in the future to improve their reality and develop and improve their internal systems for the purpose of raising the level of quality of job performance, especially (employee participation, training and education, as well as effective leadership), and to further advance all dimensions and make them to the optimum degree. in the future. 4-comprehensive quality standards cannot be achieved except in a positive climate in which human relations and mutual trust prevail between subordinates and workers, making each one of them feel fully responsible for the quality of the institution in which he works. recommendations american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 26 www.americanjournal.org 1 the researched universities should pay broader attention and greater focus to the contents of the integration of comprehensive quality management standards, since their uses are appropriate opportunities for improvement and development that are consistent with the aspirations of the universities under study in dealing with the data of building and strengthening the quality assurance system and performance development. 2 spreading awareness of the importance of applying the method of comprehensive quality management standards, tools and techniques to develop higher education institutions for the purpose of continuous improvement of their work by holding seminars, workshops and seminars for senior administrations in universities and workers and following up on developments in the field of comprehensive quality on an ongoing basis. 3-the need to convince those in charge of the higher education sector in iraq of the importance of applying the comprehensive quality management standards method to address the issues and problems of education and confront the many and complex challenges. 4 -taking into account all ideas, suggestions and opinions presented by workers in the higher education sectors as one of the requirements that contribute to continuous improvement. references 1ibn manzur, muhammad: lisan al-arab, dar ihya’ al-tarath al-islami for publishing and distribution, beirut lebanon 1998. 2al-titi, khader, managing change challenges and strategies for contemporary managers, amman: dar al-hamad for publishing and distribution. (2011). 3al-adadi, saeed “(obstacles to the application of comprehensive quality management in higher education institutions”), unpublished master’s thesis, king khalid university, saudi arabia. 2010 4al-fayoumi, ahmed: al-misbah al-munir, total quality management: dar al-hadith for printing and publishing, cairo egypt, 2008. 5abdel-gawad, lamis mansour: total quality management and the level of its contribution to achieving knowledge management in military medical services. academy of administration and politics for postgraduate studies. (2016). 6david. dear servants. quality management and academic accreditation in educational institutions. jordan. al-falah library for publishing and distribution 2010 7yousef hajim al-taie and others, total quality management systems: in production and service organizations, dar al-yazuri scientific publishing and distribution, amman, 2009 8bukamish, ali: total quality management and iso 9000, al raya publishing and distribution house, amman jordan 2011. 912al-haddad, awatef: total quality management, dar al-fikr publishers and distributors, amman jordan, 2009. 10al-haddad, awatef: total quality management, dar al-fikr publishers and distributors, amman jordan, 2009. 11al-sarawi, ahmed: applications of total quality management in institutions, dar al-kutub alilmiyyah for publishing and distribution, cairo egypt, 2014. 1229radwan mahmoud: total quality management is thought and philosophy before it is applied, arab group for training and publishing, cairo 2012. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 27 www.americanjournal.org 13al-qahtani abdul khaleq: the extent to which the requirements for implementing comprehensive quality management are available in the training programs of the public security training city in the makkah al-mukarramah region, a study submitted for obtaining a master’s degree in security sciences, naif arab university for security sciences, 2011. 14sharafi, khalil sharafi, the role of comprehensive quality management in improving the performance of higher education institutions, his study of the opinions of a sample of professors in faculties of economics in algerian universities, 2016. 15al-taweel, agha (2010) total quality management requirements in higher education and their impact on achieving sustainable development: an analytical study of the opinions of administrative leaders at the university of mosul. the fourth scientific conference of the university of aden: quality of higher education english references : 16-, salam and akprobire, ufoma : application of total quality management to the nigerian education system, global advanced research journals of educational research and review 2013, vol (2), pp ( 105-110 ) 17-sadikoglu, e., & olcay, h.. the effects of total quality management practices on performance and the reasons of and the barriers to tqm practices in turkey. advances in decision sciences2014. 18-naidu & babu, nvr & km:total quality management, new age international publishers. (2006), 19-hilton, ronald w.,"managerial accounting" ,6th ed., irwin mc graw-hill co.inc., 2005. 20-kundu goutam kumar, higher education quality: a literature review, ictact journal on management studies, vol: 02, iss: 02, may 2016. default search scheme american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 98 www.americanjournal.org history and repair processes of the mogaki attori mosque, or attori mosque history and repair processes tursunbayeva shahlo bahram's daughter turin polytechnic university in tashkent mcie1005-conservation of cultural heritage sites and the direction of restoration 2-year undergraduates a b s t r a c t k e y w o r d s in this article, ulmiy research on the study and research of more than 140 architectural monuments, historical architectural monuments erected in bukhara in the last centuries, the establishment of khwarezm samarkand and bukhara restoration school when the mughaki attori mosque was restored , as well as the history and repair processes of the mogagoki attori mosque, which has kept bukhara to this day in recognition as a "museum city“, its role in the development of the culture of ours. "museum city“,bukhara”, buddhist shrine", mokh temple, magoki-attori mosque, somonian mausoleum, archduchy, archaeological layers, v.a.shishkin, restoration, repair, arch, column, dome, geometric decoration, reconstruction. introduction religious buildings in pre-islamic bukhara are closely linked to the avesta religion, a local manifestation of zoroastrianism. along with the zoroastrians, christians and buddhists also lived in bukhara (one of the assumptions is that the name of the city itself is associated with the word vikara, which means “buddhist shrine”). however, the most common was the maji (zoroastrianism) religion. historians note that there were many atoshdans (fire-worshipping shrines) throughout the bukhara oasis, in particular in bukhara and paykend. one such shrine was located in the city of bukhara, in the market of moss, named after the god of the moon. on national holidays, clay and wooden idols were sold here. the importance of this ceremony is evidenced by the fact that the ruler of bukhara himself sat on his throne near the synagogue. the magoki-attori mosque was later built on the site of the mokh temple. early mosques were established in moverannahr (as the arabs called central asian mesopotamia) by the arabs even in the process of conquering some of its territories and only in the main cities with the aim of converting the population to a new faith; they were often erected on the site of pre-islamic religious buildings. thus, in bukhara, the magoki-attari mosque appeared on the site of the former fire temple. its history goes back to the distant sogdian country, where the max (moon) market is american journal of business management, economics and banking volume 24 may 2024 p a g e | 99 www.americanjournal.org located, where the synagogue and the navruz were new year's eve parties, where the images of the gods of the people were sold. with the decision of islam, the first mosque in the area of bazaars, between shahristan and the shohrud canal, which operated here from pre-islamic times to the 1930s, was erected on the site of a pagan temple and was called “mah”. in another version, a firecracker who embraced islam converted the mah house into a mosque. 1930 < br > the magoki-attori mosque is located in the heart of the historic part of bukhara. since the 16th century, this building with a high pedestal portal of the eastern facade and a two-domed dome is known as a neighborhood mosque. archaeological excavations in the 1930s proved that the structure dates back to pre-islamic times. in early ad, there was a flaming chapel on the site where the current mosque stands. around the temple there was a busy market called max ("moon"), where merchants on the traditional ancient persian new year's festival navruz-sold samples of the fertility gods of the zoroastrians. when islam became the dominant religion in the area, the old pagan shrine was demolished and replaced with a mosque. during the excavations, archaeologists uncovered its floor on the basis of four foundations, finding the lower parts of its old walls and the remains of a 10th-century gunch plaster decoration. in the 12th century, the building was completely rebuilt. at that time, the charming southern facade of the mosque was preserved. to open the facade, archaeologists had to remove 5 meters of archaeological layers. an entrance door was made from the top of the east wall, and a small vestibule was added to the mosque hall, adjacent to it by a staircase and a low portal. in the niche above the entrance to the mosque is a mosaic building inscription indicating the date of reconstruction – 1548-1541-1942 or 1954-1547-48 (a fragment of the inscription survives). american journal of business management, economics and banking volume 24 may 2024 p a g e | 100 www.americanjournal.org current appearance the mosque originally had 6 pillars and 12 domes. its main introduction the door lay outside the central line, on the long side of the building due to the lack of space here: the mosque was built between many shops inside the market,the design of the mosque, built in the 12th century, was almost identical to the principles of traditional architecture established only two centuries later. the main decoration of the mosque is located close to the decoration of the somonian mausoleum, and decorative brickwork here polished figure bricks are artistically assembled into patterns of scrolls, spirals and meanders. the main entrance has a slightly protruding portal, highlighted by a belt with a hood and carved pattern on stone columns. the patterned brick surface of the recessed archway slot has a small door. the arch ceiling is decorated with brick terracotta stalactites. the symmetrical halfcolumns attached to the pedestal portal are indicative of pre-islamic architectural traditions. restoration works at magoki-attari mosque. dismantling repair plaster the beginning of work on. 1930s. 1934-1935 american journal of business management, economics and banking volume 24 may 2024 p a g e | 101 www.americanjournal.org by the beginning of the 20th century, the mosque was covered with earth almost to the roof, with only domes turned into ruins and part of a 16th-century portal standing. in the 1930s, important archaeological research and restoration work was carried out here, which continued in the 1970s and 1980s[4]. however, v, who began excavations at the magoki-attari mosque.a.shishkin was unable to reach the mainland by going deeper than 12 meters from the earth's surface due to the strong flow of groundwater. the interior of the mosque is made in the form of a net measuring 3x4, with a dome above each section. the two central domes were raised in high drums to allow light to penetrate. restoration works at magoki-attari mosque. dismantling repair plaster the beginning of work on making. 1930s.1934-1935 the mosque plan is rectangular, the building material is burnt brick. extending along the east-west axis (19.4×15.5 m), the main facade faces south. the entrance door, decorated with a monumental portal, turned east, along its axis there was a secondary entrance on the north wall. inside,the ceiling of the hall (17, 4x14 m) had six round columns, while the west wall had a vaulted mehrob nest (85x55 cm). the decoration is preserved only in the portal of the main facade of the mosque. the main element of his composition is a large house covered with a half-dome, which emphasizes the entrance to the mosque. it is decorated with a pointed arch reinforced by carved stone columns. along its archivolt is a terracotta inscription ribbon, covered with turquoise glaze, carved in the "blooming" kufi inscription. fragments of epigraphy have been preserved using an unimproved terracotta technique carved on the cheek walls of the place. the front of the portal columns are designed in the form of rectangular frames, into which closed quarter columns are installed. the decoration of the portal used smooth and carved bricks with various figure stones, relief girices filled with carved hook and terracotta, and borders with carved terracotta inscriptions. archaeological studies have found that american journal of business management, economics and banking volume 24 may 2024 p a g e | 102 www.americanjournal.org the mosque was renovated in the 2nd half of the 14th century. its interior is decorated with painted maiolica and glitter, but at the beginning of the 15th century. the top of the portal collapsed. current status in the decoration of the mosque, craftsmen used a combination of bow-shaped bricks, added bricks, terracotta grilles and glazed tiles as inlays. vertical pannos on the portal have arabic diagonal inscriptions and embossed girix geometric ornament patterns. the variety of decorative forms of brickwork on the southern facade of the mosque and the amazing chiaroscuro testify to the high artistic skills of bukharian architects and craftsmen of the xii century. the magok-i-attari mosque is located immediately west of the pond and lyabi-khauz architectural ensemble. it is one of the few buildings in bukhara that were partially (or completely) built before the mongol invasion of 1219-1221. according to edgar knoblauch, it is the oldest surviving mosque in central asia, built on the foundations of a synagogue already in existence during the sogdian era, a plaster mix of the monument for 1,000 years due to the deterioration of the appearance and aesthetics of the building due to darkening, the need for fragments of the old mixture and preliminary processing (heating and grinding) during the repair period, the use of parts not only extended the life of the monument, but also became a way to create a quality and durable repair method. a worthy example of the study of repair and careful treatment of architectural objects, the time and monuments still recognized in those years developed a method of grinding and processing old bricks in the initial cleaning and repair of this cultural layer and repair plaster layer. zasypkin and master shirin murodov were used in the reconstruction of magokini. american journal of business management, economics and banking volume 24 may 2024 p a g e | 103 www.americanjournal.org 1930 < br > by the beginning of the twentieth century. the mosque is almost to the roof covered with earth, with only domes turned into rubble and part of a 16th-century portal rising; stairs descended from the street to the mosque.in the 30s, the 20th century mosque underwent significant archaeological research and restoration, during which the area in front of the ancient southern facade was cleared, and the unique decoration of the portal was restored. in the 70s, archaeological research was continued, the mosque was cleaned of cultural monuments (from three sides to the level of the 12th century, from the eastto the level of the 16th century) and restored. the moghoki attori mosque, in particular its southern roof, dates from the 12th century, but this method was typical of the beginning of renovation work and architectural masterpieces with small dimensions and carved terracotta without tiles. archaeological research has shown that there were two monumental buildings on the site in the late 9th—11th centuries. the lower mosque had a flat ceiling on strong wooden beams reinforced by external brick walls, brick floors, carved wooden columns. according to archaeological data, it was on this site that there was a synagogue of fire worshipers, which was later adapted to the mosque; the exterior of the mosque was decorated with figural stone made of sawn burnt brick. it burned down during the great fire of 1937 and became a ruin for a long time. american journal of business management, economics and banking volume 24 may 2024 p a g e | 104 www.americanjournal.org 1937 < br > the ceiling of the mosque hall, radically rebuilt from baked brick, is set on round columns, smaller in size[7]. the interior is decorated with paintings, clay carvings and a carved painted hook. over time, the mosque fell into disrepair and was replaced by a new building in the second half of the 12th century, which has survived to the present day. since 1991, there has been an exhibition of carpet museum in magoki-attari mosque. here are beautiful examples of uzbek, turkmen, persian, kazakh, armenian carpets and rugs from the xviiixx centuries, ornaments of khurzhins, oatovs. wool and silk items are decorated with geometric, floral, cosmogonic and zoomorphic patterns. the mosque is now converted into a carpet museum. american journal of business management, economics and banking volume 24 may 2024 p a g e | 105 www.americanjournal.org conclusion as in a number of historical cities of uzbekistan, dozens of large structures in bukhara were on the verge of collapse, especially glazed and ornate buildings of the xv-xvii centuries. in 1925-1935, when the mogaki attori mosque was restored, the khorezm samarkand and bukhara restoration school was established, and the pottery workshop also began to produce technologies for making glazed tiles using ancient methods and samples that did not differ from the old ones. thus, until the end of the 1930s to fill in the missing parts of the agar buildings in 1940 (k.according to kryukov, as early as 1937) ozkomstaris opened courses for the training of masters in samarkand, leaving mature specialists from ancient cities. this school carried out extensive work on the renovation of the mogokki attori mosque, where master shirin murodov and other masters laid their foundations. the main focus is on strengthening the structures, the main part of the repair work. unfortunately, there were many shortcomings in the repair work. because we are witnessing the result of haste, blind approach to repair work. at the same time, since the repair work is carried out in the short term, it is worth noting that the resulting poor quality repair is the neglect of the raw materials used in the repair. in other words, it is necessary to strengthen quality repair measures by eliminating the problems that restoration is not only the architectural monuments of bukhara, but also most of the architectural monuments of our country, which are not solved today references 1.arapov a. v. historical monuments of uzbekistan. vol.: smi-asia, 2017. 2. architectural epigraphy of uzbekistan. vol.: uzbekistan today, 2016. 3.voronina v. l. the history of art of the peoples of the ussr. m.: fine arts, 1973 — 9-82 bet. 4. zakhidov p. s. architectural monuments of the zarafshan valley. t.: uzbekistan, 1985. 5.mukhamedzhanov a. r. the results of archaeological research on the territory of the city of bukhara, 1984. american journal of business management, economics and banking volume 24 may 2024 p a g e | 106 www.americanjournal.org 6. nielsen v. a. architectural decoration of monuments of uzbekistan. st. petersburg: leningrad stroyizdat, 1974. 7.pugachenkova g. a. contribution of the peoples of uzbekistan to the architecture of the muslim world of the ix—xii centuries, 1998. 8.pugachenkova g. a. on the ancient monuments of samarkand and bukhara. m.: iskusstvo, 1968. 9.khmelnitsky s. g. between arabs and turks. early islamic architecture of central asia. berlin— riga: gamajun, 1992. american journal of business management, economics and banking issn (e): 2832-8078 volume 16, | sep., 2023 p a g e | 71 www.americanjournal.org methods of making students work on specialized texts ph.d. fattakhova d. a. nuuz a b s t r a c t k e y w o r d s in this article, the french philology students to work on specialized texts of various teaching about the use of appropriate technologies to specialized. the way to work on strengthening students the knowledge and skills of the uzbek language, specialties within the framework of language learning. the terms of expertise, specialized texts, the ability of modern educational technology, basic functions. introduction working on specialized lexicon and specialized texts helps students to strengthen and expand their knowledge and skills of the uzbek language, to learn the state language perfectly within the framework of their specialization. enriches the speech of students with specialized terms and serves to increase their speaking literacy in the uzbek language. of course, it is necessary to use modern pedagogical technologies appropriately. a blitz game will be held for the 1st-year russian groups of the french philology major to repeat the previously covered topics when passing the subject of specialist texts. it is emphasized that the given questions should be answered clearly and quickly. for example: 1. what is the name of the year 2023? 2. explain the main functions of language. 3. who are the uzbek linguists-scientists you know? 4. define monologue and dialogue. 5. which french poets do you know? 6. which works of french writers are you familiar with? 7. give examples of terms related to your specialty. 8. what do you understand by speech etiquette? 9. what are the global problems of our time? 10. memorize a passage from m. yusuf's poem. 12. which work of ch. aitmatov have you read? 14. who is the author of the stories "pomegranate" and "dashhat"? 15. who is the author of the stories "the last victim of war" and "ynga"? 16. the meaning of the word "jadid"... 17. briefly describe the types and characteristics of documents 18. what are the information documents? 19. briefly describe organizational documents american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 72 www.americanjournal.org 20. what are the documents of the order? familiarize yourself with the texts given below. the first text is dedicated to the life and work of the famous french writer victor hugo. victor hugo(1802-1885) born in a place called bezanson, victor started his work very early. at the age of fifteen, his first poem won the prize of the french academy. he was sixteen years old when the novella-novel "bug jargal" (1818) was published, and his first collection of poems was published when he was 20 years old. through the works "little red riding hood" and "gavrosh", he can show the highest qualities of bravery, courage, heroism in the form of his characters. in the novel "year 93" he creates the image of representatives of the people fighting for their future and happiness. gowen, simurden, ursus, telmarsh in the novel are representatives of ordinary people. they don't know why they live, why they fight, who they help. at the same time, they are honest, kindhearted people who do not want to hurt anyone. oppressors know how to use the power of such ordinary people. representatives of such ordinary people think of doing good to anyone and extending a helping hand. doing good is the highest wisdom, this is an important motto for them. victor hugo is a fiery poet. many poems from the poet's collection "legends of the century" have become favorite songs of the french people. the main part of these poems is devoted to the historical past of the french people. assignments 1. read the text and translate it into russian. 2. speak the text based on the plan. 3. make a b\b\b table about french poets and writers. 4. read the following sentences, replace the dots with the necessary words and phrases: 1. through the works "kizil shapkacha", "gavrosh", he showed the highest qualities ...., ....,... examples in the form of heroes .... 2. at the same time, they are right ..., ... ..., to hurt someone .... they are human beings. 3. doing good is the highest wisdom, this is an important motto for them. 4. victor hugo is a poet. table b/b/b i know/i want to know/i have found out i know i want to know i knew + ? the second text is devoted to the life and work of emil zolya. emil zolya(1840-1902) the famous french writer emil zolya was born in paris. his father was an italian, and his mother was a french girl. the novels "hamal" and "garb" made the name of emil zolya world famous and became a favorite of thousands of readers. emil zolya's novel "the dead call" (1886) is his second novel. before that, the novel "claude's repentance" was announced. the writer's epic "ruggon-makkalar" (1871-1893) is the product of twenty years of hard and effective work. the writer's "rougon-makkars" epic, which includes twenty novels, has become a huge treasure of not only french, but also western literature. this epic describes american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 73 www.americanjournal.org the history of four generations of the makkar family. the writer tells in detail about the genetic basis of this family, its place in society, the unique qualities of each member, the way of life, behavior, and marriage. the epic novels "profit", "money", "west", "hamal", "yer", "creation", "man-animal", "doctor noskal" were written at a high level, and each novel is a separate edition. done.. the novel "hamal" (1885) is distinguished from other works by its ideological height. in the novel, special emphasis is placed on the causes and consequences of numerous protests that occurred in the 80s of the xix century. emil zolya's works "three cities", "lourdes" (1894), "rome" (1896), "paris" (1898) cover the history, social and political life of the most famous cities in the world. in the last years of his life, he wrote the works "productivity" (1899), "work" (1901), "truth" (1902). these works are considered the peak of emil zolya's creativity and show that the writer is a great artist of words. assignments 1. read the text and translate it into russian. 2. speak the text based on the plan. 3. create a chain of terms for your specialty. then translation exercises are given. translation exercise париж-столица франции. париж-столица франции. это политический, административный и экономический центр государства.париж это один из самых больших городов мира. он расположен на обоих берегах сены, которые соединяются приблизительно 34 мостами.на левом берегу сены расположен известный латинский квартал. в центре квартала находится сорбонна – университет франции. недалеко расположен пантеон, в котором сохраняются захоронения руссо, виктора гюго, вольтера, эмиля золя и других известных людей. на передней части сооружения можно прочитать: «великим людям родина благодарна». посреди сены видно остров сите, колыбель парижа с собором нотр-дам – это чудесная церковь в готическом стиле, каждый камень которой напоминает многочисленные события истории франции. лувр в этом городе есть много музеев искусства. понадобится год, чтобы увидеть все шесть музеев лувра. лувр-один из старейших музеев с богатой историей коллекционирования художественных и исторических реликвий франции. в лувре собиралось всё, этот музей можно назвать универсальным. его коллекции покрывают огромные географические и временные пространства: от западной европы до ирана через грецию, египет и ближний восток; с античности до 1848 года. в этом городе есть площадь согласия. именно от этой площади начинаются елисейские поля, обрамленные бутиками класса люкс, большими кафе, кинотеатрами, деревьями. на другом берегу виднеется эйфелева башня, символ парижа, построенная в 1889 году для международной выставки. эйфелева башня эйфелева башня металлическая башня в центре парижа, самая узнаваемая его архитектурная достопримечательность. названа в честь главного конструктора гюстава эйфеля; сам эйфель american journal of business management, economics and banking volume 16 sep, 2023 p a g e | 74 www.americanjournal.org называл её просто «300-метровой башней». башня, впоследствии ставшая символом парижа, была построена в 1889 году и первоначально задумывалась как временное сооружение, служившее входной аркой парижской всемирной выставки 1889 года.эйфелеву башню называют самой посещаемой платной достопримечательностью мира и самой фотографируемой. assignments 1. read the texts and translate them into uzbek. 2. create a vocabulary of difficult words. 3. what information do you have about france? 4. complete the bbb table. 5. create a perceptual map on the topic "sights of france". a comprehensive approach to teaching the uzbek language as a foreign language, that is, it is necessary for the student to develop practical skills such as speaking, understanding, writing, reading, and translation during the course of the lesson. in the process of working on specialized texts, students learn the french language and get to know the french nation, its traditions, and the places of interest in france. they study the works of famous poetswriters and artists. currently, interactive methods and methods that are widely used in the field of education help students to develop their communication skills, to establish emotional connections between students, to respect and listen to the opinions of others, and to express their opinions independently. will give. list of references 1. abdurahmonova m., fattahova d., xalmuxammedova u., inogamova n., egamberdiyeva n. o‘zbek tili (o‘quv qo‘llanma). – toshkent: mumtoz so‘z, 2018. 2. boynazarov f. jahon adabiyoti:oliy o‘quv yurtlari uchun o‘quv qo‘llanma. -t.: “musiqa”, 2006.160b. 3. qahhorova h., muhammedova s. o‘zbek tili. -toshkent: universitet, 2004. – 192 b. 4. qahhorovah., hasanova n., fattohova d.,egamberdiyeva n. o‘zbek tilidan talabalarning og`zaki nutqini o`stirish uchun matnlar.–toshkent: universitet, 2004. 5. ahmedova m. o‘zbek tili darslarida yangi texnologiyalardan foydalanish usullari. –toshkent: universitet, 2006. 6. бегматов э. нутқ маданияти тушунчаси ҳақида // ўзбек тили ва адабиёти. – тошкент, 1975. №5. – б.50-58. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 156 www.americanjournal.org project management in professional education: problems, solutions and prospects ibragimova madina mamasolievna graduate school of business and entrepreneurship master's degree student in small business and entrepreneurship madinaibragimgva@gmail.com a b s t r a c t k e y w o r d s this article examines the current state of project management education in uzbekistan's professional education system. it identifies key challenges including outdated curricula, lack of qualified instructors, and limited hands-on learning opportunities. potential solutions are explored, such as modernizing course content, providing instructor training and certification, and incorporating more practical projects. the future prospects of project management education in uzbekistan are discussed, emphasizing the need to align programs with global standards and best practices to produce competitive professionals. through literature review and analysis of two professional education institutions, this article provides insights to advance project management education in uzbekistan. project management, professional education, uzbekistan, curriculum development, globalization introduction project management has emerged as a critical skill in today's complex and fast-paced business environment. effective project managers are in high demand across industries to lead initiatives, drive innovation, and deliver results. however, the state of project management education in uzbekistan's professional education system faces significant challenges in meeting the needs of the modern workforce. this article examines the current problems, explores potential solutions, and discusses future prospects for project management education in uzbekistan. the importance of project management competency continues to grow as organizations of all sizes and sectors undertake increasingly complex projects with greater frequency. in uzbekistan, industries such as construction, it, manufacturing and services are expanding and require skilled project managers to lead teams and deliver successful outcomes [1]. professional education institutions play a key role in developing the next generation of project management professionals. however, the existing programs and teaching approaches have not kept pace with global standards and best practices. american journal of business management, economics and banking volume 23 april 2024 p a g e | 157 www.americanjournal.org methods and literature review to understand the current state and challenges of project management education in uzbekistan, a literature review was conducted focusing on professional education, curriculum development, and global best practices. key word searches in academic databases and google scholar were used to identify relevant journal articles, conference papers, dissertations, and reports published within the past 10 years. the search terms included "project management education", "professional education in uzbekistan", "curriculum development", and "global standards in project management". the literature review revealed several studies that highlight the global trends and best practices in project management education. a survey of some project management programs across 20 countries found a growing emphasis on aligning curricula with industry needs, providing practical learning experiences, and incorporating international standards such as the project management institute's (pmi) a guide to the project management body of knowledge (pmbok guide) [2]. case studies of institutions in countries such as the united states, united kingdom, australia, and india provided examples of innovative teaching methods and program designs [3] [4] [5]. however, there is limited research specifically examining project management education in the uzbekistan context. one study identified project management skills as a key area where uzbekistan companies face challenges recruiting qualified candidates [6]. these findings suggest significant gaps between professional education and industry needs in uzbekistan. results the results of this study reveal several major challenges currently facing project management education in uzbekistan's professional education system. firstly, the curricula of existing programs are outdated and misaligned with global standards. a review of the course content at tashkent state technical university and the uzbekistan banking association learning center found that they emphasize theoretical concepts over practical application, with limited incorporation of international methodologies such as pmi's pmbok guide. syllabi analysis showed an average of only 25% of course time dedicated to hands-on projects or case studies, compared to 50-60% in leading programs worldwide [2]. secondly, there is a shortage of qualified instructors to teach project management. among the 20 instructors at the two case study institutions, only 2 had any form of project management professional certification such as pmp or prince2. in contrast, faculty at top global institutions bring an average of 8.5 years of project management experience [4]. the limited expertise of instructors hinders their ability to connect theory to practice and provide mentorship. table 1. key gaps identified between project management education in uzbekistan and global best practices aspect uzbekistan global best practices curriculum focus 75% theoretical, 25% applied 40-50% theoretical, 50-60% applied instructor expertise 2.5 years industry experience, 10% certified 8.5 years industry experience, 80% certified student hands-on experience 32% worked on real projects 80% worked on real projects american journal of business management, economics and banking volume 23 april 2024 p a g e | 158 www.americanjournal.org furthermore, the content of project management courses is not adequately aligned with the needs of uzbekistan's major industries. construction firms use specialized project management approaches and software that are not covered in depth by current curricula. it companies require familiarity with agile methodologies like scrum, which receive insufficient attention. better collaboration between education providers and industry partners is needed to ensure graduates are equipped with relevant skills. table 2. the top project management skills prioritized by uzbekistan industry based on a review of job postings and industry reports skill industry priority rank professional education emphasis rank risk management 1 4 stakeholder management 2 5 agile methodologies 3 7 budgeting and cost control 4 3 time management 5 2 quality management 6 6 communication 7 1 lastly, project management education in uzbekistan is often limited to a local perspective, without sufficient integration of global viewpoints and cross-cultural skills. in an increasingly interconnected business environment, project managers must be able to work effectively with diverse teams and stakeholders [7]. however, current programs place little emphasis on international case studies, crosscultural collaboration, or global project management standards. these results highlight the significant challenges facing project management education in uzbekistan's professional education system. to produce graduates who are equipped to succeed as project managers and drive the country's economic development, significant changes are needed to curricula, instructor development, practical learning opportunities, industry alignment, and global perspectives. the following section discusses potential solutions and future prospects in light of these findings. discussion the challenges facing project management education in uzbekistan are complex and multifaceted, requiring a comprehensive approach to drive meaningful improvements. this section discusses potential solutions and future prospects based on the results of this study and insights from the literature. firstly, professional education institutions must prioritize modernizing their project management curricula to align with global standards and best practices [8]. this involves shifting from a primarily theoretical focus to a balance of conceptual learning and practical application. incorporating internationally recognized methodologies, such as pmi's pmbok guide, agile, and prince2, can provide students with a solid foundation in the principles and processes used by leading organizations worldwide. curriculum development should be an ongoing process, regularly updated based on emerging trends and input from industry partners. american journal of business management, economics and banking volume 23 april 2024 p a g e | 159 www.americanjournal.org secondly, investing in the development of qualified instructors is crucial to enhancing the quality of project management education. institutions should prioritize hiring faculty with relevant industry experience and professional certifications [9]. providing support and incentives for existing instructors to pursue certifications and participate in professional development opportunities can help bridge the gap between academia and practice. engaging experienced project managers as guest speakers, mentors, or adjunct faculty can bring valuable real-world perspectives to the classroom. thirdly, incorporating more hands-on learning opportunities is essential for students to develop practical project management skills. this can be achieved through a combination of in-class projects, case studies, simulations, and real-world client engagements [10]. capstone projects and internships should be integrated into program curricula to provide students with authentic experiences managing projects from initiation to closure. collaborating with industry partners to develop project-based learning modules can ensure relevance to the needs of uzbekistan's key sectors. finally, integrating global perspectives and cross-cultural skills is essential for preparing project management professionals to succeed in an interconnected business environment. this can be achieved by incorporating international case studies, encouraging student participation in global project management competitions and conferences, and facilitating virtual collaborations with international partners. developing partnerships with institutions in other countries can provide opportunities for student and faculty exchanges, joint research, and curriculum sharing. the future prospects for project management education in uzbekistan are promising, but realizing its potential will require concerted efforts from multiple stakeholders. government bodies, such as the ministry of higher and secondary specialized education, can play a key role in setting standards, providing resources, and facilitating collaboration between education providers and industry. professional associations, such as the uzbekistan project management association, can support the development of a strong project management community of practice, offer certification programs, and advocate for the profession. as uzbekistan continues its economic development and global integration, the demand for skilled project managers will only continue to grow. investing in high-quality project management education is essential for producing professionals who can drive successful projects, innovate, and contribute to the country's prosperity. by addressing the current challenges and implementing the solutions discussed in this article, uzbekistan's professional education system can make significant strides in preparing the next generation of project management leaders. conclusion this article has examined the current state of project management education in uzbekistan's professional education system, identifying key challenges, exploring potential solutions, and discussing future prospects. the results of this study highlight significant gaps between existing programs and global best practices, including outdated curricula, lack of qualified instructors, limited hands-on learning opportunities, misalignment with industry needs, and insufficient integration of international perspectives. to address these challenges and enhance project management education in uzbekistan, several key recommendations emerge from this research. firstly, modernizing curricula to align with global standards and best practices is essential, balancing theoretical concepts with practical application. secondly, investing in the development of qualified instructors with relevant industry experience and american journal of business management, economics and banking volume 23 april 2024 p a g e | 160 www.americanjournal.org professional certifications can enhance teaching quality. thirdly, incorporating more hands-on learning opportunities, such as real-world projects and internships, is crucial for developing practical skills. fourthly, collaborating closely with industry partners to align program content with workforce needs can ensure graduates are equipped with relevant competencies. finally, integrating global perspectives and cross-cultural skills is vital for success in an interconnected business environment. references 1. aripov, s. (2019). project management competencies for uzbekistan's economic development. journal of uzbekistan economy, 5(2), 35-47. 2. ramazanov, i., & safarov, n. (2020). global trends in project management education: a comparative analysis. international journal of project management, 38(4), 195-205. 3. smith, j., & johnson, m. (2018). innovative approaches to project management education: a case study from the united states. project management journal, 49(6), 62-72. 4. patel, k., & shah, p. (2019). integrating industry experience into project management curricula: insights from indian business schools. journal of management development, 38(5), 387-404. 5. chen, t., & lee, s. (2017). project-based learning in project management education: a case study from an australian university. journal of applied research in higher education, 9(3), 393408. 6. saidova, g. (2020). challenges in recruiting qualified project managers: perspectives from uzbekistan industry. journal of human resource management, 23(3), 245-258. 7. khodjaev, b., & rustamov, d. (2021). enhancing project management education in uzbekistan: challenges and opportunities. journal of education and training, 63(2), 112-125. 8. ahmedov, i., & karimov, s. (2021). integrating global best practices in project management education: a framework for uzbekistan. journal of international education research, 17(3), 223235. 9. ibragimov, a., & yuldasheva, m. (2022). developing industry-aligned project management curricula in uzbekistan: insights from the uzbekistan banking association learning center. journal of management development, 41(6), 479-495. 10. rakhimov, t., & khasanov, b. (2023). enhancing project management skills through experiential learning: a case study from uzbekistan. international journal of project management, 41(2), 187-200. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 287 www.americanjournal.org assessing the scale and structure of untaxed economy in uzbekistan alimardonov gayratjon nuralievich researcher, research center “scientific bases and problems of the development of the economy of uzbekistan” under the tashkent state university of economics a b s t r a c t k e y w o r d s the article assesses the scale and structure of the untaxed economy in uzbekistan. in addition, it reveals the essence of the concept of the untaxed economy. moreover, the article analyzes the reasons and factors envisaging the wide spread of shadow economic activity in uzbekistan, as well as provides considerations on the limitations of the full coverage of informal economic activity. the situation of entities engaged in the shadow economic activity in uzbekistan in 2021-2023 has been analyzed and appropriate conclusions have been developed in reliance upon the research results. untaxed economy, social factors, cultural factors, social networks, poverty reduction, income distribution, formalization. introduction the untaxed economy in uzbekistan is an essential but complicated aspect of the country’s economic situation and requires a comprehensive investigation to fully understand its scale and structure. this shadow sector includes a wide range of activities, from small unregistered enterprises to informal labor arrangements, thus it is difficult to accurately evaluate them. in reliance upon the unique conditions of uzbekistan, the untaxed economy has a developing character that is closely connected with the socio-economic structure of the country. understanding the scale and structure of the informal economy in uzbekistan is very important for effective economic policy development and sustainable development. the untaxed sector often represents a significant part of economic activity, and without a clear understanding of its scale and structure, industry experts may not take into consideration important contributors to the national economy. by gaining an understanding of informal practices, unregistered enterprises and informal labor arrangements, professionals can explore the specific needs and challenges of this sector and ultimately develop targeted strategies that can solve the issue. furthermore, an unambiguous understanding of the untaxed economy can help create policies that promote inclusive growth, as it allows for the integration of informal workers into the core business. by its essence, comprehensive knowledge of the scale and structure of the untaxed economy creates a solid basis for making rational decisions and ultimately ensures sustainable economic development in uzbekistan. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 288 www.americanjournal.org the historical evolution of the untaxed economy in uzbekistan is originated form the country’s complex socio-economic and political trajectory. during the soviet union, uzbekistan was an integral part of the centrally planned economy, characterized by state-controlled enterprises and collective farms. the breakup of the soviet union in 1991 was a turning point that resulted in the emergence of independent uzbekistan. the transition to a market economy resulted in the implementation of the economic reforms, but it also created shadow economic activity as individuals sought alternative means of livelihood outside the formal sector. literature review there are different opinions on the concept of the untaxed economy and it is still a relatively new research topic. for example, chen and carré (2020) argue that although the concept of informality (untaxed nature) has been criticized by many scholars as being “too fuzzy and the formal-informal dichotomy too binary”, it cannot be abandoned in its definition. as harriss-white (2020) points out, a clear description of what should and should not be included in the untaxed economy, remains important for positive, normative and measurement purposes. the untaxed economy is a complex phenomenon, which determinants and consequences depend on the characteristics of the units involved, macroeconomic and institutional factors. the multifaceted nature of the untaxed economy explains the lack of a comprehensive theory of informality in the literature that is appropriate for both developing and developed countries. indeed, a theoretical perspective that explains the emergence of the untaxed character (informality) as a survival strategy in a developing country may be ill-suited to understanding the widespread nature of the untaxed economy in developed countries (goel and nelson, 2016). therefore, in order to avoid misunderstandings among scholars, it is crucially important to clarify which type of informality the theory aims to explain. dell’anno (2007) proposes a micro-based macroeconomic modeling framework in which, in addition to taxes, a worker’s choice to engage in informal activity depends on univariable input costs, lending market imperfections, and labor force composition (i.e., share). ulyssea (2018) has developed a competitive equilibrium model in which different firms can exploit two thresholds of informality: three different types of informal firms co-exist in an economy (“survival firms” are too inefficient to operate formally even if entry costs are removed; “parasitic firms” are sufficient to survive as formal firms after entry barriers are removed, but prefer to remain informal; “informal firms” (they are kept out of formality due to high entry costs, but if they are removed, they become formal and improve). dell’anno (2021) divides the potential drivers of the untaxed (informal) economy into six categories. these categories deal with: the taxation system (i.e. measured as total tax burden, tax mix, tax complexity, marginal tax rate); regulatory framework (i.e. overall regulatory burden, occupational health and safety legislation); labor force composition (i.e. self-employment rate, unemployment rate, significant number of illegal immigrants, presence of unskilled workers); enforcement system (i.e. detection probability, penalty rates, severity of criminal penalties); tax ethics and institutions (i.e. historical background, fairness of public policy, corruption, quality of political institutions, media and economic freedom). in reliance upon the considerations specified above, it is obvious that research on the untaxed economy concept is still to be done, and clear conclusions have not yet been formulated. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 289 www.americanjournal.org analysis and results in the early years of independence, economic liberalization and privatization processes resulted in the growth of unregistered small businesses and informal trade. the untaxed (informal) economy further expanded as people struggled to adapt to the new market conditions, leading to widespread underemployment and unregulated business beyond official statistics. informal economic activity has become a coping mechanism for many in this period of economic change. over the following years the untaxed economy continued to play an important role in uzbekistan under the impact of such factors as bureaucratic barriers, limited formal employment, and cultural norms. despite the government's efforts to formalize the economy, informal practices persist and shape the economic process in ways that require comprehensive verification. understanding this process is very essential to undertake effective policy measures in the current situation of the untaxed economy in uzbekistan. the wide spread of untaxed economic activity in uzbekistan can be referred to the combination of cultural and socio-economic factors that have shaped the national economic environment (table 1): in reliance upon the data in table 1, understanding these cultural and socioeconomic factors provides important insights into the drivers of untaxed economic activity in uzbekistan. policymakers aiming to solve untaxed sector challenges and encourage formalization must consider this complex interaction of culture, history, and socio-economic conditions. table 1 reasons and factors for widespread of the untaxed economic activity in uzbekistan1 cultural standards and traditions cultural values that emphasize self-reliance and entrepreneurship support the adoption of informal activities. in uzbekistan, where family and community ties are important, untaxed economic practices often conform to traditional assumptions and community support networks. historical inheritance the historical legacy of soviet-era central planning has made a lasting impact. the transition to a market-oriented economy created difficulties and uncertainties, which encouraged individuals to turn into untaxed economic activities as a means of adapting to changing conditions. limited formal employment opportunities formal employment opportunities may be limited, particularly in certain areas or sectors. as a result, people turn to informal activities to earn income and support their livelihoods out of economic necessity. bureaucratic barriers complex bureaucratic rules and procedures and regulatory barriers associated with formal business registration and compliance prevent individuals from entering the formal sector. informal activities provide a more affordable and flexible alternative for those seeking economic opportunities. informal social networks informal economic activities often develop within existing social networks. trust and familiarity within communities foster the growth of informal enterprises, as people prefer to do business with people they know or within their social circle. flexible work schedule informal employment offers a degree of flexibility not always available in formal employment. economic inequality socio-economic disparities can push people to engage in untaxed activities as a survival strategy. lack of access to financial services limited access to formal financial services may be an essential factor. in the absence of formal banking, individuals may rely on informal financial networks, further blurring the lines between formal and informal economic activity. 1developed by the author in reliance upon the literary sources studied. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 290 www.americanjournal.org measuring the scale of the untaxed economy presents many challenges due to its inherently unregulated and often hidden nature. key challenges in determining the scale of the untaxed economy, including unregistered businesses and informal employment, include: ▪ unregistered enterprises and informal labor structures often operate outside official sources, making it difficult to collect accurate data. individuals engaged in untaxed activities may not voluntarily disclose their involvement, leading to under-reporting and incomplete data; ▪ the untaxed economy is dynamic and includes a wide range of activities. traditional economic measurement tools may not capture the diverse forms and scales of untaxed enterprises, preventing a full representation of its scale and structure; ▪ untaxed employment arrangements, including self-employment, and outside official statistical data contribute to the complexity of the assessment. the lack of formal contracts, wage data and official documents complicates determining the level of untaxed employment; ▪ most informal transactions are done in cash, avoiding formal financial systems. dependence on cash transactions and lack of formal financial reporting prevent proper monitoring and measurement of economic activity in the untaxed sector; ▪ due to data limitations, researchers often resort to estimation methods that may introduce uncertainties in the accuracy of measurements. measuring the scale of the untaxed economy involves assumptions that do not fully reflect its complexity and leads to misleading perceptions; ▪ untaxed economic activities, particularly those related to agriculture or seasonal work, may experience significant changes throughout the year. traditional measurement approaches have a hard time accurately accounting for these seasonal and cyclical fluctuations; ▪ globalization has facilitated cross-border untaxed activities and adds additional complexity to measurement efforts. informal cross-border trade and economic interactions further complicate the task of accurately measuring the scale of the untaxed economy within national borders; ▪ some formal businesses may be engaged in untaxed practices to reduce costs or avoid certain regulations. differentiating between formal and informal aspects within a single entity creates difficulties, making it difficult to classify enterprises correctly. moreover, traditional economic indicators often fall short of capturing the full range of untaxed economic activity due to a number of inherent limitations. traditional economic indicators rely mainly on official sector data such as registered enterprises and official labor journals. this focus excludes the large contributions of unregistered enterprises and untaxed labor arrangements, giving an incomplete picture of economic activity. the main limitations are presented in figure 1. figure 1. restrictions on full coverage of untaxed economic activity2 2 developed by the author. u n d er re p re se n ta ti o n o f u n ta x ed la b o r l im it ed c o v er ag e o f ca sh tr an sa ct io n s im p ro p er a ss es sm en t o f o v er -t h eco u n te r m ar k et t ra n sa ct io n s in v is ib il it y o f u n re g is te re d en te rp ri se s d if fi cu lt y d is ti n g u is h in g b et w ee n fo rm al a n d i n fo rm al p ra ct ic es l im it ed d at a o n i n fo rm al c ro ss b o rd er a ct iv it ie s in ab il it y t o c ap tu re u n ta x ed en tr ep re n eu rs h ip american journal of business management, economics and banking volume 20 january, 2024 p a g e | 291 www.americanjournal.org if we look at figure 1, each restriction makes its own impact, so it cannot represent the full extent of untaxed economic activity. for example, considering these in sequence, standard employment indicators often do not take into account untaxed employment arrangements, including selfemployment and employment outside of official statistics. this omission results in an underestimation of the true extent of employment in the untaxed economy. traditional economic indicators rely heavily on transactions within formal financial systems, ignoring the spread of cash transactions in the untaxed economy. untaxed economic activities often involve cash transactions, making them less visible in traditional financial data. traditional indicators struggle to measure the barter exchange and non-market transactions prevalent in the untaxed sector. informal economic activity often involves non-monetary exchanges or transactions outside of traditional markets, bypassing traditional means of measurement. many untaxed enterprises and businesses operate without formal registration, making them invisible to traditional business registration databases. consequently, traditional indicators cannot reflect the economic contribution of this unregistered sector. traditional indicators cannot effectively distinguish between formal and informal practices in businesses operating in both sectors. herewith they often lack the data on the informal cross-border trade and economic interactions. the globalization of the untaxed activity is not adequately reflected in traditional economic indicators, ignoring the international dimensions of the untaxed economy. business activity within the untaxed economy is not adequately reflected by traditional indicators. the innovation-based aspects of informal entrepreneurship are often not taken into consideration hindering a comprehensive understanding of economic change. overcoming these limitations requires a shift to more comprehensive measurement approaches that capture the complexity of informal economic activity. according to experts, the share of the shadow economy in our country is 40 percent and is estimated at approximately 32 billion usd. this value is mainly due to the secondary market of real estate and vehicles, wholesale and retail trade, services, smuggling of tobacco products, trafficking of illegal goods, agriculture, etc3. based on table 2, we will analyze the data provided on the untaxed economy in uzbekistan from 2021 to 2023 from the scientifical point of view. the consolidated national indicator for the republic of uzbekistan demonstrates the trend of growth of both the number of entities and sales, during this period the total amount of sales accounted for 24 225.8 billion uzs. it shows the overall economic activity in the untaxed sector. 3 https://kun.uz/news/2023/10/03/ozbekistonda-yashirin-iqtisodiyot-ulushi-32-mlrd-dollarga-baholanmoqda american journal of business management, economics and banking volume 20 january, 2024 p a g e | 292 www.americanjournal.org table 2 analysis of the condition of untaxed economic entities in 2021-20234, billion uzs № region 2021-2023 including 2021 2022 january – september 2023 number sales amount purchase amount number sales amount purchase amount number sales amount purchase amount number sales amount purchase amount throughout the republic, total 2424 24 225,8 21 023,6 525 2 991,7 3 848,9 532 8 116,4 7 172,5 1367 13 117,7 10 002,2 1 republic of karakalpakstan 113 353,1 368,7 16 39,9 93,8 23 152,8 172,4 74 160,4 102,5 2 andijan region 197 2 410,3 2 420,8 69 374,1 545,3 46 1 115,6 1 308,1 82 920,6 567,4 3 bukhara region 71 179,2 108,3 20 26,5 35,9 13 81,4 34,0 38 71,3 38,4 4 jizzakh region 56 157,2 259,9 30 74,5 209,3 10 57,2 38,0 16 25,5 12,6 5 kashkadarya reg. 139 712,7 582,5 48 48,6 109,1 25 131,5 107,5 66 532,6 365,9 6 navoi region 61 393,1 397,0 6 3,2 2,1 8 30,9 17,9 47 359,0 377,0 7 namangan region 210 2 019,3 1 244,3 37 450,4 262,2 53 508,6 333,6 120 1 060,3 648,5 8 samarkand reg. 92 542,8 497,1 12 29,3 106,2 15 71,3 43,5 65 442,2 347,4 9 surkhandarya region 72 595,6 585,9 23 241,7 284,7 12 39,8 45,1 37 314,1 256,1 10 syrdarya region 114 475,3 167,7 13 243,9 31,1 10 17,9 17,4 91 213,5 119,2 11 tashkent region 382 5 388,8 4 804,2 45 297,4 661,3 102 1 749,2 1 436,7 235 3 342,2 2 706,2 12 fergana region 240 2 342,1 1 838,4 108 777,1 857,8 51 600,4 426,4 81 964,6 554,2 13 khorezm region 84 225,2 191,9 12 13,7 8,8 16 98,8 22,2 56 112,7 160,9 14 tashkent city 592 8 377,4 7 495,1 85 317,8 579,6 148 3 461,0 3 169,7 359 4 598,6 3 745,8 15 large taxpayer inspectorates 1 53,6 61,7 1 53,6 61,7 0 0,0 0,0 0 0,0 0,0 the difference between the regions is clearly visible, tashkent city is distinguished by the largest number of enterprises and trade. this corresponds to the expected results due to the economic significance of the capital. some regions, such as andijan, namangan and fergana, have remarkable indicators, while other regions, such as karakalpakstan and navoi, have relatively low levels of activity in the untaxed economy. a closer look at the annual distribution reveals changes in sales by number of entities and regions. the data provide insight into the networks that drive untaxed economic activity in each region. analysis of the distribution of entities by sector and the volume of sales allows for a more detailed understanding of the structure of the untaxed economy. taking into consideration the observed disparities and general trends, recommendations should be tailored to solve specific challenges in each region. for example, regions with low levels of formalization can benefit from targeted incentives and support programs. 4 developed by the author in reliance upon the data of the tax committee american journal of business management, economics and banking volume 20 january, 2024 p a g e | 293 www.americanjournal.org table 3. analysis of enterprises engaged in “cash-out transactions”5, billion uzs № period number sales amount purchase amount total 4 848 48 451,5 42 047,1 1 2020 2 424 24 225,8 21 023,6 2 2021 525 2 991,7 3 848,9 3 2022 532 8 116,4 7 172,5 4 january – september 2023 1 367 13 117,7 10 002,2 from the data in table 3, there is a significant change in the amount of sales and purchases from 2021 to 2022.2 424 transactions totaling 24 225.8 billion uzs were made and the volume of purchases amounted to 21 023.6 billion uzs in 2020. in 2021, the number of transactions increased by 525, and the amounts of sales and purchase amounted to 2991.7 billion uzs and 3848.9 billion uzs respectively.in 2022 the amount of sales (8 116.4 billion uzs) and purchases (7172.5 billion uzs) increased by 532 transactions. in january-september 2023 1367 transactions were made and their sales and purchase amounts were 13117.7 billion uzs and 10002.2 billion uzs respectively. consolidated data for the entire period demonstrates a significant increase in cash transactions. the total number of transactions has reached 4 848, which total sales amount constituted 48451.5 billion uzs and the purchase amount accounted for 42047.1 billion uzs. calculating the percentage change of sales and purchase amounts from year to year enables to understand the growth rates of cash transactions. examining which sectors or industries contribute the most to these cash transactions can provide a more detailed understanding of economic activity. taking this fact into account, we present the analysis of the share of the industrial sector in the untaxed economy (table 4). table 4. analysis of the industry share in the untaxed economy6, in percent № industry share in the untaxed economy(%) types of business related to the field 1. consumer domestic services 22.1 house cleaning, hairdressing, beauty salons, dry and chemical cleaning, catering, pest control, computer maintenance, security, healthcare, pet care and others. 2. hospitality industry 16.4 restaurants, cafes, bars, dining places, hotel service. 3. retail services 15.6 retail stores, mass (or open) markets, etc. 4. construction 15.6 construction and assembly works, home repair services, etc. 5. others 30.3 automotive sales and maintenance, agriculture, transportation, tourism, real estate (including rentals), recycling, freelancers, entertainment, leisure and other similar services. 5developed by the author in reliance upon the data of the tax committee 6developed by the author in reliance upon the data of the tax committee american journal of business management, economics and banking volume 20 january, 2024 p a g e | 294 www.americanjournal.org the information about the contribution of the industrial sector to the untaxed economy in uzbekistanis analyzed in reliance upon the data presented in table 4. the consumer domestic services sector contributed 22.1% to total industrial activity. it includes a variety of household services such as house cleaning, beauty salons, food cooking, computer maintenance, home security, health care, and pet care. the hospitality industry contributes 16.4% to the industrial sector. this includes services provided by hospitality services in restaurants, cafes, bars, entertainment venues and hotels. retail trade makes up 15.6% of the industrial sector. this includes retail stores, public (or open) markets, and other commercial platforms that contribute to overall economic activity. construction activity contributes 15.6% to the industrial sector. this includes construction and assembly works, home repair services and other related construction enterprises. others constitute 30.3%. this sector includes various services including car sales and technical services, rural development activities, transportation services, tourism, real estate rental, reemployment initiatives, freelancers, entertainment and other related services. the data demonstrates the different types of businesses in the industrial sector. the distribution of shares by different sectors gives an idea of the relative importance of each category in the formal economy. the inclusion of various services such as healthcare, consumer services and construction offers a stable and flexible industrial sector capable of meeting diverse economic needs. identifying the sectors with high percentages can provide valuable information for investors and indicate areas with potential for further expansion and development. although the presented data and analysis are focused on the formal industrial sector in uzbekistan, it does not provide a direct understanding of the scales and structure of the untaxed economy. however, we can make some comments on this issue. the data primarily highlights the contribution of various formal sectors such as consumer services, hospitality, retail, construction and others. this highlights the significance of these formal sectors in the overall industry share. the lack of specific data on the untaxed economy in the analysis indicates difficulties in measuring and describing untaxed economic activity. the untaxed economy often operates outside formal channels and may not be adequately captured by traditional economic measurements. the “others” category, which represents 30.3 percent of the industrial sector, refers to the potential presence of untaxed businesses in various service sectors. untaxed economic practices such as freelancing, unregistered businesses, and certain service operations may be included in this miscellaneous category. in order to make clear conclusions about the scales and composition of the untaxed economy, special studies focused on informal economic activities are crucially important. it is essential to rely on methodological research, including surveys, interviews and other methods, to gather information about unregistered enterprises, informal operations and untaxed labor practices. it should be noted here that significant contributions of the formal and informal (untaxed) sectors should be recognized. understanding the dynamics of the untaxed economy is quite essential to developing effective interventions that address the needs and challenges of businesses operating outside of formal regulation. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 295 www.americanjournal.org conclusion summing up, while the presented analysis highlights the untaxed industrial sector, making a conclusion about the scale and structure of the untaxed economy requires a specialized research focused on informal activities. it would not be wrong to say that the untaxed economy in uzbekistan was developed by the complex interaction of cultural and historical factors deeply rooted in the national heritage. the historical inheritance of soviet-era centralized planning, along with the subsequent transition to a market economy, has resulted in a changing process in which people manage uncertainty through untaxed economic practices. rich traditions of entrepreneurship deeply embedded in the culture of uzbekistan contribute to the widespread distribution of informal business and trade. relationships based on trust, which is a peculiarity of uzbekistan’s society, further contribute to the growth of informal economic transactions in social networks. resilience embedded in the cultural fabric enables people to adapt to economic changes, while informal activities serve as the mechanisms for survival. references: 1. chen m. & carré f. (eds.). (2020). the informal economy revisited. routledge. 2. harriss-white, b. (2020). india's informal economy. past, present and future. in m. chen & f. carré (eds.), the informal economy revisited (pp. 38–44). routledge. 3. goel, r. k., & nelson, m. a. (2016). shining a light on the shadows: identifying robust determinants of the shadow economy. economic modelling, 58(c), 351–364. 4. dell’anno, r. (2007). the shadow economy in portugal: an analysis with the mimic approach. journal of applied economics, 10(2), 253–277. 5. dell’anno, r. (2021). theoretical approaches to the phenomenon of informality. in s. m. ruesga, j. baquero, & j. l. delgado (eds.), dialogues on socioeconomy: informality in latin america (chapter 3) (pp. 117–134). tirant lo blanc. 6. ulyssea, g. (2018). firms, informality, and development: theory and evidence from brazil. american economic review, 108(8), 2015–2047. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 76 www.americanjournal.org bridging borders: the impact of global trade on nigeria’s economic development jaho philip1 mojekwu, ogechukwu rita 2 1the institute of international trade and development, faculty of social sciences, university of port harcourt, rivers state nigeria. 2department of finance and banking, faculty of management sciences, university of port harcourt, rivers state nigeria. corresponding author: rita.mojekwu@uniport.edu.ng a b s t r a c t k e y w o r d s this study examined the relationship between international trade and economic development in nigeria from 1985 to 2022. secondary data on per capita income, terms of trade, and exchange rates were collected from the central bank of nigeria (cbn) statistical bulletin. the study utilized the augmented dickey-fuller (adf) unit root test and the autoregressive distributed lag (ardl) bounds test as the primary analytical techniques. the results from the adf unit root test indicated that the variables were stationary at orders zero and one, which met the requirements for employing the ardl bounds testing approach. the ardl bounds test for cointegration revealed a long-run relationship among the variables. the short-run ardl results demonstrated that terms of trade were positively related to per capita income, while the exchange rate exhibited an inverse relationship with per capita income. based on these findings, it is recommended that the government implement policy measures aimed at expanding exports, as this has the potential for economies of scale. additionally, the monetary authority should maintain a market-driven exchange rate policy to encourage local production, ultimately leading to an increase in the export of finished products and strengthening the naira against the dollar. ardl, exchange rate, income, per capita, term of trade. introduction the economic performance of any country, especially in terms of growth and development, is partially driven by its exchange of goods and services with other nations. according to gbosi (2019), international trade refers to cross-border transactions that involve the utilization of foreign currencies, resulting in the movement of goods and services between countries to promote economic advancement. consequently, many development and international economists advocate for international trade, linking it to global and domestic economic progress. american journal of business management, economics and banking volume 29 october 2024 p a g e | 77 www.americanjournal.org participation in global trade can significantly contribute to economic growth and development by promoting exports, which in turn encourages production for external markets and facilitates the accumulation of foreign exchange reserves used for importing essential capital inputs. furthermore, such engagement in trade can enhance knowledge dissemination within industries, promoting economic expansion and reducing unemployment levels (nchom, 2021; cyper & dietz, 1997). additionally, international trade allows capital to flow more freely and supports the efficient production of goods by allocating resources to countries that can produce them more competitively. however, the dynamics of globalization and trade liberalization in developing economies like nigeria present new complexities, with unpredictable impacts on development indicators such as the human development index (hdi), living standards, job creation, and poverty reduction (kareem, 2010). over time, nigeria has experimented with two distinct trade policies: restricted and liberalized regimes. as kareem (2010) noted, “the philosophy of the controlled trade regime comprised regulatory mechanisms that employed both direct and indirect instruments to manage foreign trade and payments.” despite the implementation of trade liberalization strategies and initial signs of economic improvement, several indicators still suggest underperformance in nigeria’s broader economy. for instance, the nation experiences low savings rates, underutilized production capacities, and insufficient capital formation needed to boost employment and hdi (obayori & robinson, 2019). empirical findings suggest that the adverse link between international trade and economic development in nigeria can be attributed to the "dutch disease" phenomenon. as an oil-rich nation, nigeria's heavy reliance on crude oil exports has led to an overvaluation of its real exchange rate, making non-oil exports more costly and less competitive globally (hausman & rigobon, 2002). a surge in oil exports, coupled with increased reprocessing outside the country, has contributed to diminishing domestic production, which negatively impacts employment levels and living standards. moreover, a rise in imports relative to domestic production can further reduce employment if it suppresses demand for locally produced goods. employment can also decline if an increase in imports leads to the closure of less productive local firms unable to compete. while the conventional perspective suggests a positive relationship between international trade and economic development, this has not been the case for nigeria, where poverty levels have remained alarmingly high. poverty increased from 43 percent in 1972 to 66 percent in 1996, reaching 69 percent in 2010 (nigeria bureau of statistics, 2017; kakain & obayori, 2018). unemployment also escalated, rising from 24 percent in 2011 to 25.1 percent in 2014 and reaching 26 percent by 2016 (nbs, 2017). similarly, the human development index (hdi) saw only modest growth of 8.1 percent over the past decade, increasing from 0.47 in 2005 to 0.5 in 2013 and 0.53 in 2017 (undp, 2018). these figures suggest that revenue and profits from foreign trade have yet to significantly boost per capita income, employment opportunities, or poverty reduction (ewubare & kakain, 2015; undp, 2018). in light of these observations, this study explores the influence of international trade on nigeria’s economic development, measured through gdp per capita from 1985 to 2022. 2. literature review this section reviews existing studies conducted by various scholars on the topic. the purpose of examining these works is to gain a comprehensive understanding of the current subject under american journal of business management, economics and banking volume 29 october 2024 p a g e | 78 www.americanjournal.org consideration. the literature review is organized under the following subheadings: conceptual framework, theoretical review, empirical review, and evaluation of the literature. 2.1 conceptual framework 2.1.1 concept of economic development economic development is a broad concept that refers to the sustained improvement in the economic well-being and quality of life of a nation’s population. it encompasses much more than just an increase in a country’s gross domestic product (gdp); it involves qualitative changes in the structure of the economy, improvements in living standards, and the equitable distribution of wealth. in essence, economic development is about creating opportunities for people to thrive—socially, economically, and culturally. economic growth not synonymous with development; the distinction between the duo is significant. while growth refers strictly to an increase in economic output, , typically measured by gdp, economic development is about improving the overall quality of life and ensuring that growth translates into better living conditions for the majority. economic development focuses on how growth translates into broader improvements for society, such as job creation, poverty reduction, and better access to resources (todaro & smith, 2020). for instance, a country may experience high gdp growth driven by natural resource extraction, but if the profits remain concentrated in a few hands, with little investment in education, healthcare, or infrastructure, it would not be considered development in a meaningful sense (sen, 1999). more so, a critical aspect of economic development is improving the human condition. this is often measured through indicators like life expectancy, literacy rates, and income levels. the united nations development programme (undp) introduced the human development index (hdi) to capture this holistic perspective. the hdi considers not only income but also health and education outcomes, reflecting the view that development is about expanding human capabilities and freedoms (undp, 2023). economic development often involves a shift from agriculture-based economies to more diversified ones that include manufacturing and services. this structural transformation is important for increasing productivity and creating a more resilient economy. as countries move up the value chain, they develop the capacity to innovate, produce more sophisticated goods, and integrate into global markets (rodrik, 2021). furthermore, effective institutions and social frameworks play a vital role in supporting economic development. strong governance, the rule of law, access to quality education and healthcare, and an inclusive political system are all necessary to ensure that economic growth leads to broader societal progress. without these, economic gains may not be sustainable or equitably distributed. in recent years, the focus has shifted toward sustainable development, which emphasizes meeting the needs of the present without compromising the ability of future generations to meet their own needs. this approach integrates economic, social, and environmental dimensions. as climate change, resource depletion, and inequality pose serious challenges, countries are increasingly adopting policies that promote long-term development goals alongside economic growth (sachs, 2015). 2.1.2 measures of economic development economic development is a multi-dimensional concept that goes beyond just economic growth, focusing on improving the well-being and quality of life for a country's citizens. while economic growth is typically measured by increases in gross domestic product (gdp), economic development american journal of business management, economics and banking volume 29 october 2024 p a g e | 79 www.americanjournal.org includes a broader set of indicators that assess social, economic, and environmental progress. some key measures of economic development: are discussed below; gross domestic product (gdp) per capita: gdp per capita is one of the most widely used measures of economic development. it divides a country's total economic output by its population, giving an average economic productivity per person. while useful, gdp per capita focuses mainly on economic output and income, which does not always reflect overall well-being or inequality. high gdp per capita might not translate into equitable wealth distribution or improvements in living standards, especially if economic gains are concentrated among a small portion of the population (stiglitz, sen, & fitoussi, 2010). human development index (hdi): the human development index, developed by the united nations, offers a more holistic measure of development. it combines three dimensions: life expectancy (a proxy for health), education (measured by expected and mean years of schooling), and income (adjusted gdp per capita). hdi provides a more comprehensive picture of development by capturing both economic and non-economic factors, making it a valuable tool for understanding long-term improvements in quality of life (united nations development programme [undp], 2023). gini coefficient: the gini coefficient measures income inequality within a country. it ranges from 0 (perfect equality) to 1 (perfect inequality), providing insight into how wealth is distributed across the population. high inequality can hinder development, even if a country is experiencing rapid economic growth. a low gini coefficient suggests that wealth is more evenly distributed, which can support social cohesion and sustainable economic progress (world bank, 2023). poverty rate: another critical measure of economic development is the poverty rate, which indicates the proportion of a population living below the poverty line, usually based on the ability to meet basic needs such as food, shelter, and healthcare. reducing poverty is a key goal of development efforts, as economic progress should ultimately improve living standards for all citizens, especially the most vulnerable. countries may use national poverty lines or international thresholds such as the world bank’s $2.15 a day poverty line (world bank, 2023). employment and labor productivity: employment levels and labor productivity are important indicators of how well an economy is utilizing its workforce. high unemployment or underemployment signals economic inefficiencies and is often associated with poverty and low standards of living. on the other hand, increasing labor productivity – the output produced per worker – is a positive sign of economic development, as it often reflects improvements in technology, education, and infrastructure that allow workers to produce more goods and services (international labour organization, 2021). life expectancy and health indicators: health is a crucial component of economic development, as a healthy population is more productive and capable of contributing to the economy. life expectancy is often used as a broad indicator of the overall health of a population. additionally, other health metrics such as child mortality rates, access to healthcare services, and incidence of diseases are essential american journal of business management, economics and banking volume 29 october 2024 p a g e | 80 www.americanjournal.org measures of development, as they reflect the quality and accessibility of healthcare in a country (world health organization [who], 2022). educational attainment: education plays a fundamental role in development by equipping people with the skills necessary to participate in the economy and improve their quality of life. measures such as literacy rates, school enrolment, and average years of schooling provide insights into a country’s educational achievements. countries with higher educational attainment tend to experience faster economic development, as an educated workforce drives innovation and economic competitiveness (barro & lee, 2013). infrastructure development: adequate infrastructure is essential for economic growth and development, as it facilitates trade, communication, and access to essential services. measures of infrastructure development include access to clean water, electricity, transportation networks, and internet connectivity. countries with well-developed infrastructure can support higher productivity and offer better living conditions, contributing to long-term economic progress (calderón & servén, 2014). environmental sustainability: in recent years, economic development has increasingly incorporated measures of environmental sustainability. indicators such as carbon emissions, deforestation rates, and renewable energy use reflect how sustainably a country is developing. economic progress at the expense of the environment can lead to long-term damage, so countries that prioritize sustainability are often seen as pursuing more balanced development strategies (sachs, 2015). 2.1.3 the impact of global trade on economic development global trade, or international trade, plays a pivotal role in shaping the economic development of nations. through the exchange of goods, services, capital, and technology, countries can access markets beyond their borders, fostering economic growth, technological advancement, and enhanced living standards. however, the relationship between global trade and economic development is complex and varies depending on the specific conditions of a country, such as its stage of development, institutional framework, and trade policies. one of the most widely acknowledged benefits of global trade is its positive impact on economic growth. by engaging in international trade, countries can specialize in the production of goods and services in which they have a comparative advantage, leading to increased efficiency and output (krugman et al., 2018). specialization allows for the optimal use of resources, which, in turn, boosts productivity and growth. moreover, trade provides access to larger markets, which can lead to economies of scale for domestic firms. for developing countries, trade can serve as a critical driver of industrialization and economic modernization, offering an avenue for integration into global value chains (world bank, 2020). for instance, east asian economies such as south korea and china have used export-oriented industrialization strategies to achieve rapid economic development. by participating in global trade, these nations have transformed their economies from agriculture-based systems into advanced manufacturing hubs, achieving sustained growth (gereffi & lee, 2016). international trade also facilitates the transfer of technology, which is crucial for economic development. through trade, developing countries can import advanced machinery, know-how, and technology that they might not be able to produce domestically (helpman, 2020). this transfer of american journal of business management, economics and banking volume 29 october 2024 p a g e | 81 www.americanjournal.org technology can enhance productivity and stimulate innovation within domestic industries. moreover, exposure to international markets fosters competition, compelling firms to innovate and adopt more efficient production methods. in many cases, foreign direct investment (fdi) is linked to trade, bringing both capital and technology into developing countries. multinational companies that invest in local markets often introduce new technologies and management practices, contributing to the overall development of the host economy (blomström & kokko, 2020). the effect of global trade on employment and income distribution is multifaceted. on one hand, trade can create new jobs by expanding industries that are export-driven. for instance, as countries open their markets, demand for labor in export-oriented sectors typically increases, leading to higher employment rates (rodrik, 2018). additionally, international trade can enhance income by providing access to cheaper goods and services, improving consumers’ purchasing power. however, the benefits of trade are not distributed evenly across all sectors of the economy. while some industries thrive through access to global markets, others may face intense competition from imports, potentially leading to job losses or wage reductions in those sectors (stiglitz, 2017). developing countries are particularly vulnerable to these disruptions, as they may lack the social safety nets or retraining programs needed to support workers affected by trade liberalization. trade can play an important role in reducing poverty, especially in developing countries. by integrating into global markets, low-income countries can generate more jobs, raise household incomes, and improve access to essential goods and services (world trade organization [wto], 2021). in countries with large agricultural sectors, trade can offer smallholder farmers opportunities to sell their products in international markets, improving their livelihoods and contributing to rural development. yet, the relationship between trade and poverty reduction depends on several factors, including the structure of the economy and the degree of inequality. if the gains from trade are concentrated in specific sectors or among a small group of elites, the overall impact on poverty reduction may be limited (dollar & kraay, 2013). 2.2 theoretical review: the adam smith theory of absolute advantage this study is theoretically based on adam smith’s theory of absolute advantage. smith argued that two countries can mutually benefit from trade by specializing in goods they can produce more efficiently with the same amount of resources (gbosi, 2005). absolute advantage refers to a nation’s ability to produce a particular good using fewer resources compared to another nation. for instance, consider two countries—ghana and nigeria—that produce cocoa and groundnut, respectively. if nigeria employs an equal amount of labor as ghana and utilizes fewer resources, it can produce a higher quantity of groundnut than ghana (gbosi, 2005). conversely, ghana would produce more cocoa under the same conditions. therefore, nigeria holds an absolute advantage in groundnut production over ghana. smith (1776) explained that the surplus output generated by a nation should be exported to other countries, and the revenue from these exports could be utilized to import goods that the nation cannot produce as efficiently. thus, if both nigeria and ghana engage in trade, nigeria stands to benefit by specializing in groundnut production and exporting the surplus to ghana, while importing cocoa from ghana in return (gbosi, 2005). this specialization and exchange would contribute to economic growth by creating jobs, increasing per capita income, and enhancing the human development index (hdi) american journal of business management, economics and banking volume 29 october 2024 p a g e | 82 www.americanjournal.org in the short term, ultimately leading to sustained economic development in the long term. see table 2.1 for better analysis. table 2.1: 2 by 2 model of absolute advantage country labour input ground nut cocoa nigeria 1,000 units 200 kg 400 kg ghana 1,000 units 300 kg 150 kg source: gbosi (2005) 2.2 empirical literature the empirical literature on the impact of international trade on economic stability in nigeria and other countries has been widely explored. relevant studies are discussed below; nchom and udeorah (2021) explored the link between international trade and employment rates in nigeria from 1999 to 2019, employing the dynamic ordinary least square (dols) regression analysis. their findings indicated that export had a negative but significant relationship with the employment rate in nigeria. similarly, import was also negatively signed with employment rate, but the effect was not statistically significant in explaining the employment rate during the study period. afolabi and oyelekan (2020) investigated the influence of trade openness on nigeria’s economic growth using the ordinary least squares (ols) method. the results suggested that trade openness positively influenced economic growth in nigeria, with evidence of a long-term relationship. interestingly, exports were negatively related to growth, while imports had a positive effect, contrary to the expected outcome. gizem (2020) analyzed the relationship between export, import, and economic growth in brics-t countries using data from 1990 to 2018. the augmented mean group (amg) estimator was applied to measure coefficients across the panel. findings showed that both exports and imports had a statistically significant and positive impact on economic growth. however, country-specific results revealed varying effects. for instance, in brazil, export was negatively related to growth, while in india, it had a positive impact. for brazil, russia, china, and turkey, imports positively influenced economic growth, while no significant result was found for south africa. adegbemi, babatunde, and grace (2019) explored the nexus between trade liberalization and poverty in 21 african nations over the period 2005-2014 using a variety of econometric tests such as pooled ols, panel unit root tests, and the johansen co-integration test. the results showed that foreign direct investment and inflation positively correlated with the human development index (hdi), while exchange rates and trade openness had a negative relationship with poverty levels at a 5% significance level. rani and kumar (2018) examined the export-led growth (elg) and import-led growth (ilg) hypotheses for brics countries using panel data from 1967 to 2014. utilizing fmols and dols estimators, their study found that exports significantly and positively influenced economic growth, while imports had a significant but negative effect. the panel vector error correction model (vecm) analysis further revealed a bidirectional causality between export and growth, validating both the elg and ilg hypotheses. ahamad (2017) assessed the effect of international trade on economic growth in bangladesh using pearson correlation and multiple regression models. the findings showed a direct impact of both export american journal of business management, economics and banking volume 29 october 2024 p a g e | 83 www.americanjournal.org and import on gdp, confirming that international trade positively influenced the economic performance of the country. asaleye et al. (2017) evaluated the relationship between trade openness and employment in nigeria using a vector error correction model and granger non-causality tests. the results showed short-run causality between trade openness, real gross domestic product (rgdp), consumer price index, exchange rate, and interest rate, but no long-term causality was established. the findings also indicated a negative long-term relationship between trade openness and output, suggesting that trade openness hindered employment generation. sunde (2017) investigated the relationship among economic growth, foreign direct investment (fdi), and exports in south africa using the ardl model and causality tests. the results indicated a longterm relationship among the variables, with fdi and exports driving economic growth. there was unidirectional causality from fdi to economic growth and exports, and a bidirectional causality between economic growth and exports. keho (2017) studied trade openness and economic growth in cote d’ivoire from 1965 to 2014 using ardl and the toda and yamamoto causality tests. the results revealed that trade openness had a direct positive impact on economic growth, confirming a direct link between the variables. ebrahimi (2017) used the autoregressive distributed lag (ardl) modeling technique to analyze the relationship between imports and economic growth in iran from 1961 to 2010. the study established the existence of a cointegration relationship between total imports and real gdp. additionally, a neural network approach was used to model the variables, which further validated the reliability of the results. 2.3 literature gap the study has reviewed adam smith's theory of absolute advantage as it pertains to trade and development. according to smith, two countries can gain from international trade by focusing on producing goods for which they have an absolute advantage, using the same unit of labor. in addition, empirical studies such as those by nchom and udeorah (2021), afolabi and oyelekan (2020), gizem (2020), and asaleye et al. (2017) have examined the relationship between international trade and macroeconomic indicators in various contexts. however, a noticeable gap in the literature is that most of these empirical works focus on the drivers of international trade independently, rather than providing a holistic assessment of its impact on overall economic development. moreover, many of these studies are primarily concerned with macroeconomic performance indicators such as employment or economic growth, with limited attention to the broader concept of economic development, which includes improvements in living standards, gdp per capita, and societal well-being. this study addresses these gaps by focusing on the impact of international trade on economic development in nigeria, extending the time frame to 2022 to capture recent trends in the nigerian economy. furthermore, the study employs the auto regressive distributed lag (ardl) model to establish the relationship between the dependent (economic development) and independent variables, thereby providing a more comprehensive understanding of the dynamics of international trade and its implications for nigeria. by using adam smith's theory of absolute advantage as a framework, the study aims to provide policy recommendations that highlight the potential benefits of nigeria's active participation in international trade. american journal of business management, economics and banking volume 29 october 2024 p a g e | 84 www.americanjournal.org 3. methodology the data for this study was sourced from the central bank of nigeria (cbn) statistical bulletin, world bank, and publications from the national bureau of statistics (nbs). to analyze the impact of international trade on economic development, the study adopts the auto regressive distributed lag (ardl) model as proposed and applied by pesaran, shin, and smith (2001). the ardl technique is chosen because it is suitable for estimating models where the variables are either integrated of order zero i(0), order one i(1), or a combination of both, making it versatile for different time series properties. 3.1 model specification the ardl model is described by belloumi (2014) as a robust technique for estimating both short-run and long-run relationships, particularly for small and relatively large sample sizes. the model will be constructed based on adam smith’s theory of absolute advantage and the general theory of development. the functional model is expressed as: gpc =f(td, er) (1) the econometric form of the model is stated in log-linear form in equation (2) in order to align the variable in the same unit as follows: lngpct = α0 + α1lngpct + α2lntdt + α3lnert + ∑ 𝑛 𝑖=1 ∆α1ln𝐺𝑃𝐶𝑡 − 1 + ∑ 𝑛 𝑖=1 ∆α2ln𝑇𝐷𝑡 − 1 + ∑ 𝑛 𝑖=1 ∆α3ln𝐸𝑅𝑡 − 1 + ℰ1t (2) the error correction models (ecm) ardl equation was stated as: ∆lngpct = α0 + α1lngpct + α2lntdt + α3lnert + + ∑ 𝑛 𝑖=1 ∆α1ln𝐺𝑃𝐶𝑡 − 1 + ∑ 𝑛 𝑖=1 ∆α2ln𝑇𝐷𝑡 − 1 + ∑ 𝑛 𝑖=1 ∆α3ln𝐸𝑅𝑡 − 1 + ω𝐸𝐶𝑀 + ℰ1t (3) where; gpc = per capita income, td = terms of trade (proxied by degree of openness), er= exchange rate, αo = constant terms, α 1 – α3, = coefficients of the regressors, ∆= first difference operator, n = maximum lag lengths, ℰ 1t= white noise, ecm = error correction term lagged for one period, ω= error correction coefficients and in = natural logarithm. 4. results and discussion 4.1 descriptive statistics for underlying series the essence of the descriptive statistics is to ascertain stability of the time series table 1: descriptive statistics for the underlying series gpc td er mean 258.5120 35268.75 114.4728 median 231.6335 8.970050 121.8500 std. dev. 75.41403 84108.20 103.2670 skewness 0.335939 2.069759 0.790444 kurtosis 1.403235 5.500260 2.821764 jarque-bera 4.501616 35.08035 3.796466 probability 0.105314 0.000000 0.149833 observations 36 36 36 source: eview 10 output american journal of business management, economics and banking volume 29 october 2024 p a g e | 85 www.americanjournal.org the information on table 1 showed that, the mean of per capita income (gpc), term of trade (td) and exchange rate averaged ₦259 billion, 35269 percent and 114 ₦/$ respectively. the standard deviation showed that the all the dependent variable (gpc) as well as two of the independent variables (td and er) converged around their respective means. the skewness test result showed positive values for all the series, meaning that they have high tails. more so, the probability of jarque-bera statistics suggests that the null hypothesis of normal distribution for per capita income and exchange rate was upheld while the null hypothesis for the variable term of trade was rejected at 5% level. therefore, it was concluded from the revealed statistical properties of the time series that the variables are largely not normally distributed, which may have resulted from the problem of unit root. this necessitated the test for stationarity of the time series. 4.2 unit root test the augmented dickey fuller (adf) test was used to investigate stationarity and the order of integration of the variables. table 2: augmented dickey fuller unit root test variable adf test critical values order of integration 1% 5% 10% gpc -5.3972 -3.6463 -2.9540 -2.6158 1(1) td -5.58851 -3.6329 -2.9540 -2.6158 1(0) er -4.70024 -3.6329 -2.9540 -2.6158 1(1) source: eview 10 output the information on table 2 showed that, one variable (term of trade) was stable at level (integrated of order zero). but, the not stable variables, (per capita income and exchange rate) were differenced once and they became stationary at first difference (that is order one) prior to subsequent estimations to forestall spurious regressions. this means that the best regression results were obtained when the above variables were used in the model estimations. 4.3 ardl bounds test for cointegration the pesaran-shin ardl bounds test for co-integration is applied to check if the null hypothesis of no long run relationship among the variables in each of the four models is to be rejected or not. the results of the bounds test co-integration is reported in tables 3. table 3: ardl bounds test for co-integration for per capita income (gpc) model model f-statistic = 12.90496 f(td), log(er) k = 2.0000 critical-values lower bound upper bound 10 percent 3.1700 4.1400 5 percent 3.7900 4.8500 1 percent 5.1500 6.3600 source: e-views 10 output american journal of business management, economics and banking volume 29 october 2024 p a g e | 86 www.americanjournal.org note: k represents number of explanatory variables the co-integration result showed that, the f-statistic of 12.90496 is higher than the upper bound critical value of 4.8500 at the 5percent level of significance using restricted intercept without trend specification. this simply implies that, the term of trade, exchange rate and per capita income shared long-run relationships among themselves table 4: estimated ardl long run coefficients. dependent variable: gpc ardl (1, 2, 1) regressors coefficients t-statistics p-values td -0.002418 -2.05456 0.0497 log(er) 2.189703 2.917825 0.0070 source: e-views 10 output the estimated ardl long run coefficients in the table above showed that term of trade has a negative relationship with per capita income in nigeria. this means that, a percentage increase in term of trade reduced per capita income by 0.5 percent. also, the coefficient of exchange rate appears with positive; this conforms to the apriori expectation. meaning that a strong value of the naira in relation to the us dollar will increase per capita income in nigeria. also, the absolute value of the t-statistic for the slope coefficients of term of trade and exchange rate are statistically significant. thus, it can be deduced from the result that the influence of the variables (term of trade and exchange rate) on per capita income in the long-run will be noticeable in nigeria. table 5: error correction representation for the ardl model: gpc ardl (ardl (1, 2, 1) regressors coefficients t-statistics p-values c 11.92935 1.97273 0.0588 log(gpc) 0.935246 27.62664 0.0000 td 0.000900 -2.52812 0.0176 log(er) -0.10705 -1.91043 0.0668 ecm (-1) -0.064754 -2.950504 0.0012 r-squared = 0.6549 adjusted r-squared = 0.5783 f-statistic = 8.5431 prob(f-statistic) = 0.000 durbin-watson 1.7487 source: e-views 10 output table 5 presents the results of the short-run dynamic coefficients associated with the long-run relationships derived from the error correction mechanism (ecm) equation. the coefficient for the terms of trade (td) exhibits a positive sign, indicating that a favorable terms of trade can enhance per capita income (which serves as a proxy for economic development) in nigeria. specifically, a proportional increase in the terms of trade is associated with a 0.009 percent increase in per capita income. furthermore, the absolute value of the t-statistic for the slope coefficient related to terms of trade is significant, leading the study to reject the null hypothesis and accept the alternative hypothesis. this suggests a significant relationship exists between terms of trade and per capita income in nigeria. therefore, if nigeria’s exports of finished goods and services surpass its imports, it is likely to stimulate growth and development within the economy. this finding aligns with the empirical work of omekwe american journal of business management, economics and banking volume 29 october 2024 p a g e | 87 www.americanjournal.org (2018), who explored the degree of openness in trade and concluded that the openness of an economy regarding exports and imports positively impacts the development of nigeria's economy. the coefficient for the exchange rate shows a negative sign, indicating a weak value of the nigerian currency. this suggests that a depreciated naira against the us dollar negatively impacts per capita income (used as a proxy for economic development) in nigeria during the study period. specifically, a proportional increase in the exchange rate results in a decrease of 10.7 percent in per capita income. additionally, the absolute value of the t-statistic for the slope coefficient is not significant, leading the study to reject the alternative hypothesis and accept the null hypothesis, which states that there is no significant relationship between the exchange rate and per capita income in nigeria. this outcome implies that poorly managed exchange rate policies can hinder economic development in nigeria, contradicting the findings of nchom (2021), who argued that the exchange rate has a positive and significant relationship with economic development. furthermore, the coefficient of the error correction term is negative and statistically significant, indicating that deviations from the short-term per capita income quickly adjust to long-run equilibrium, with an adjustment speed of 64.75 percent. in other words, any disequilibria in per capita income from the previous year are corrected in the current year at this rate. thus, the ecm effectively addresses any deviations from the short-run to long-run equilibrium relationship between per capita income, representing economic development, and the explanatory variables associated with international trade. moreover, the adjusted r² value of 0.5783 suggests that the dynamic model fits well, explaining approximately 58 percent of the variation in per capita income (economic development) due to terms of trade and exchange rate. the durbin-watson (dw) value of 1.7487, which is close to 2.0, indicates that the model is free from serial autocorrelation issues. additionally, the f-statistic value of 8.5431, with a corresponding probability value of 0.000000 (which is less than the 0.05 critical value), demonstrates that all explanatory variables (terms of trade and exchange rate) are significant in explaining the increase in per capita income in nigeria during the study period. 5. summary, conclusion and recommendations this study utilized the auto regressive distributed lag (ardl) model to examine the relationship between international trade and economic development in nigeria from 1985 to 2022. as nigeria seeks to enhance its development through better per capita income, increased economic growth, and improved human development index (hdi), it is essential to focus on the contributions and improvements in the external sector of the economy, particularly concerning exchange rates and terms of trade. several interrelated issues, such as declining foreign exchange receipts due to falling oil prices and the continuous depreciation of the naira, underscore the need for a productive external sector. a robust external sector, supported by favorable exchange rates and exports, is crucial for enhancing the performance of the nigerian economy. the findings indicate that international trade has significantly impacted economic development in nigeria. specifically, the terms of trade have positively contributed to economic development, while the weak value of the naira against international currencies, such as the us dollar, has been detrimental to nigeria's economic progress. global trade is a key driver of economic development, offering countries opportunities for growth, technology transfer, job creation, and poverty reduction. however, the impact of trade varies depending on a country’s economic structure and policy framework. while the benefits of trade are clear, challenges such as income inequality and industrial disruption must be carefully managed to ensure american journal of business management, economics and banking volume 29 october 2024 p a g e | 88 www.americanjournal.org that the gains from trade are widely shared. ultimately, global trade, when balanced with sound domestic policies, has the potential to significantly enhance economic development and improve living standards. based on the findings of this study, it is recommended that the government should formulate and implement policy measures aimed at expanding exports, particularly finished products. this should involve promoting the export of manufactured goods and value-added products rather than relying solely on primary raw materials. such policies could stimulate a vigorous transformation within the dom3estic economy and enhance its overall performance. additionally, the central bank of nigeria (cbn) should maintain a market-driven exchange rate policy to encourage local production, which would boost exports and subsequently drive economic growth and improve per capita income in nigeria. references 1. adegbemi o., babatunde j. & grace, o. 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(2019). government spending in selected sectors and job creation in nigeria. african journal of applied and theoretical economics, 5(1), 106-123. 30. omekwe, s.p.o. (2018). degree of economic openness and macroeconomic performance in nigeria, 1980-2016. unpublihed ph.d tthesis submitted to college of graduate studies, university of port harcourt, nigeria 31. pesaran, m. h., shin, y., & smith, r. j. (2001). bounds testing approaches to the analysis of level relationships. journal of applied econometrics, 16(3), 289-326. 32. rodrik, d. (2018). straight talk on trade: ideas for a sane world economy. princeton university press. 33. rodrik, d. (2021). the globalization paradox: democracy and the future of the world economy. w.w. norton & company. 34. sachs, j. d. 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(2022). world health statistics 2022. https://www.who.int appendix: research data year gpc(n billion) td (%) er(n /$) 1985 178.2349 0.093400 0.89 1986 176.939 0.072400 2.02 1987 172.6494 0.235500 4.02 1988 178.6424 0.239400 4.54 1989 185.6051 0.375200 7.39 1990 201.8995 0.581600 8.01 1991 195.729 0.795200 9.91 1992 195.0317 1.285200 17.3 1993 193.288 1.398700 22.05 1994 188.8386 1.339100 21.89 1995 187.7601 6.061600 21.89 1996 190.4489 6.373400 21.89 1997 191.1325 6.911300 21.89 1998 191.0425 5.112000 21.89 1999 187.3907 6.571400 92.53 2000 192.7443 8.903200 109.55 2001 200.536 9.036900 113.45 2002 224.1309 7.538900 126.9 https://hdr.undp.org/ https://www.wto.org/ https://data.worldbank.org/ https://www.who.int/ american journal of business management, economics and banking volume 29 october 2024 p a g e | 91 www.americanjournal.org 2003 239.1361 5.002800 137 2004 256.373 12.49080 132.85 2005 268.4452 17.88010 129 2006 279.1033 17.51060 127 2007 291.5925 19.26950 116.8 2008 304.3156 22.83730 131.25 2009 320.8243 18.71950 148.1 2010 341.9678 15.83530 148.81 2011 350.2499 29.33390 156.7 2012 355.0349 28.94700 155.76 2013 364.1631 29.14300 155.74 2014 375.5749 29.05000 168 2015 374.8041 238658.2 197 2016 361.0291 255612.1 305 2017 357.6552 262567.5 306 2018 357.0845 252279.3 307 2019 342.0103 172726.5 306 2020 335.0244 87522.5 365 2021 336.4544 172726.5 na 2022 na 87522.5 367 american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 89 www.americanjournal.org principles of selecting nozzles for oil refinery reactors n. u. toshmatov, sh. p. mansurova jizzakh polytechnic institute a b s t r a c t k e y w o r d s the article examines the issues of new ways to increase the efficiency of technological processes and improve the internal devices of reactors, the location of nozzles on the surface of the plate, gas flow rates, the cross-section of the nozzle with a flat diffuser. burner, diffuser, nozzle, flow velocity, turbulence, combustion zone. introduction at present, reactors of petrochemical plants use distribution plates with a large number of tubular nozzles, the design of which varies. modern requirements for the quality of oil refining products, in particular for the content of harmful impurities (for example, sulfur), force us to look for new ways to increase the efficiency of technological processes and improve the internal devices of reactors containing a catalyst layer. reactors use open-type nozzles, while other manufacturers close the outlet section of the nozzle branch pipe with a flat divider, installing it at a distance of 0.1-0.25 percent of the branch pipe diameter. in these nozzles, the liquid flow is supplied to the diffuser, highly dispersed distribution, having a perforation degree of 2-3%, uniform arrangement of nozzles on the surface of the plate. the corresponding gas flow rates in the nozzle pipes are provided by the assignment of the perforation degree of the plate and are 2.4-4.15 m/s for the specified flow range. figure 1. open type injectors american journal of business management, economics and banking volume 31 december 2024 p a g e | 90 www.americanjournal.org numerous experiments have shown that for this type of flows in the zone between the distribution plate and the catalyst bed, the influence of the similarity criteria of the froude and euler numbers is practically insignificant. the structure of the gas flow is determined mainly by the reynolds number, i.e. the influence of viscous forces, therefore, when determining the parameters of the experimental setup, we proceeded from the requirement of equality of the reynolds numbers for flows in natural (in reactors) and experimental conditions, which would ensure the identity of the flow pattern in the studied zones. the reynolds number for the flow zone under consideration is appropriate to determine by the parameters of the nozzle branch pipes: internal diameter of 40 mm and flow velocity through the nozzle v m/sec. let us dwell on the choice of the type of flow as the working medium and compare the corresponding indicators of kinematic viscosity and. average value for the working flow in reactors: 0.9875*10-6 m2/sec, corresponding values for air and water, m2/sec; water 1.0*10-6. air 18.09*10-6 comparing the kinematic viscosities of the working flow in the reactor, water and air, we see a practical coincidence of their values for the working medium and water. it follows that the reynolds numbers determined for the reactor zone and the experimental setup will coincide under the following conditions: • identity of the geometry of the nozzles and the flow zone under study; • the working fluid that forms the flow in the experimental setup; • equality of flow rates through nozzles in full-scale and experimental setups. since the flow occurs at high pressure and temperature, the implementation of these conditions during the experimental work requires separate consideration. when implementing these conditions in the experimental setup, the flow structures, their dynamics and other indicators obtained during the experimental work will be identical to the processes occurring in reactors under the operating conditions of their operation. in this case, there is no need to create high pressures and maintain high temperatures. 2. materials and research methods the geometric appearance of the experimental setup is determined from the following conditions. due to the symmetry of the placement of the nozzles over the area of the plate, each of them has its own zone of influence, limited on the sides by six zones from neighboring nozzles with similar parameters, inside which the flow structure is formed. interaction with neighboring flows from other nozzles occurs along the common boundaries of the zone. to obtain a flow pattern in the zone of action of the nozzle, taking into account the influence of neighboring zones, a "cut" of the working zone is carried out in depth from the plate to the catalyst layer with three nozzles located in one line, while the choice of the direction of this line in the plane of the plate is of no importance due to the symmetry of the arrangement of the nozzles. 3.research results the experimental work was carried out as part of a certified reference pouring stand intended for testing measuring instruments for the needs of heat engineering. the stand is equipped with measuring and automation instruments for creating and maintaining water flow rates and speeds with the required accuracy. american journal of business management, economics and banking volume 31 december 2024 p a g e | 91 www.americanjournal.org the experimental setup has a removable transparent panel on the top and a transverse metal insert on which three nozzles with replaceable diffusers are mounted. each nozzle has a pipeline for feeding colored liquid into the nozzle branch pipe to visualize the flow pattern. the colored liquid is fed from a separate container and under pressure. water was used as the working medium, as defined above. the setup is designed to operate under pressure up to 0.1 mpa. from a wide variety of nozzle divider options, five of the most functionally and technologically promising ones in terms of manufacturing and installation were selected. for each variant of the diffuser, the flow rate in the nozzle branch pipe was varied during the tests, m/e: 2.4; 3.3; 4.15. the flow structures were recorded for 300 seconds by a portable video camera and, after computer processing, were converted into computer video films and frame-by-frame file structures with a frequency of 50 frames/sec. it should be noted that the flow rates through the nozzles were formed and maintained by the stand systems stationary during the entire time of pouring a specific variant, whereas for all variants of diffusers and flow modes in the studied zone, non-stationary flow patterns with different linear scales of turbulence and parameters of vortex structures were formed, which corresponds to reynolds numbers of 2.5*105. 4. analysis of research results based on the experiment, it was established that the greatest uniformity of the flow structure or the least turbulence is provided by nozzles with diffusers of option no. 3. this diffuser has a perforated disk with a perforation rate of 15-27%, diameter d = 1.500 (d is the internal diameter of the nozzle), installed at a distance hd from the branch pipe cut. the flow pattern is characterized by uniform expansion downstream with a weak turbulent structure, i.e. with weak velocity disturbances in the cross section of the jet, which can be taken as the required flow structure. an increase in the flow velocity leads to an increase in the scale of turbulence, but to acceptable values, i.e. extensive vortex structures with reverse flows are not formed. american journal of business management, economics and banking volume 31 december 2024 p a g e | 92 www.americanjournal.org based on the research, it has been experimentally established and when comparing the structure of the flows formed by all the considered variants of the nozzles, it is evident that the greatest uniformity of the flow structure or the least turbulence is provided by the nozzle with the diffusers of variant no. 3. 5. conclusions and recommendations considering the obvious advantages in the formation of the flow as a whole behind the reactor distribution plate, as well as the technological efficiency of manufacturing this version of the diffuser, the gas-oil burner gmgd-4.0m is recommended for use in the design of the nozzle as part of the distribution plate as a whole. references 1. mansurova sh. p. 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(2021). pollutant standards for mining enterprises. easychair, (5134). 32. такабоев, к.у., мусаев, ш.м., & хожиматова, м.м. (2019). загрязнение атмосферы вредными веществами и мероприятие их сокращение. экология: вчера, сегодня, завтра, 450-455. 33. enda o’connell. towards adaptation of water resource systems to climatic and socioeconomic change.water resources management august 2017, volume 31, issue 10, pp 2965–2984. 34. internet resource. meeting on the results of reforms in the water management system in 2019 and priorities for the future, 25.01.2020: http://www.water.gov.uz/uz/posts/1545735855/371 35. mansurova sh.p. features of humid air during processing with sorbents // high technologies, science and education: topical issues, achievements and innovations. 2020. s. 82-84 36. кенжабаев, а.т., жумаев, к.х., & султонов, а.о. (2022). автоматлаштирилган сув узатиш тармоqларини ишлаш алгоритми. eurasian journal of academic research, 2(10), 78-87. 37. sultonov, a., & turdiqulov, b. 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(2023). yer osti muhandislik tarmoqlarini joylashtirish va ularning mustahkamlik parametrlarini aniqlash. innovations in technology and science education, 2(9), 402–408. 45. максимчук о.в., мансурова ш.п. рекуперация воздуха в системе вентиляции. международный научно-практический журнал "экономика и социум". стр. 1046-1049. выпуск № 1(116) 2024. сайт: http://www.iupr.ru. https://link.springer.com/journal/11269 https://link.springer.com/journal/11269/31/10/page/1 http://www.water.gov.uz/uz/posts/1545735855/371 http://www.iupr.ru/ american journal of business management, economics and banking volume 31 december 2024 p a g e | 95 www.americanjournal.org 46. mansurova sh.p. (2024). processes of heat and moisture exchange of the surface of a heated liquid in direct contact with the environmental air. miasto przyszłości, 54, 630–634. retrieved from https://miastoprzyszlosci.com.pl/index.php/mp/article/view/5279. 47. toshmatov n. u. (2024). temperature and humidity changes in the surface of evaporating liquid depending on hydrodynamic conditions. american journal of education and evaluation studies, 1(8), 113–118. retrieved from https://semantjournals.org/index.php/ajees/article/view/454. https://miastoprzyszlosci.com.pl/index.php/mp/article/view/5279 https://semantjournals.org/index.php/ajees/article/view/454 american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 107 www.americanjournal.org theoretical basis of organizing students' learning activities on the basis of personally-oriented education yuldasheva malokhat erkinovna qdpi, phd. akramov mirzaqosim bakhtiyorjonovna master's student of qdpi a b s t r a c t k e y w o r d s this article discusses the essence, didactic possibilities, main directions, principles, and peculiarities of a new view of the personality of the person. person-centered education, principle, new approach to the person, democratization of relations, individual approach. introduction in recent years, the principle of person-centeredness in the education system has become a leading principle in education, and large-scale research based on this principle is being conducted in countries around the world. based on these studies, the development of the person's potential based on an axiological approach has developed as the main idea. as a result, the idea of person-centered education was born. this education, by its very nature, provides for the full development of all participants in the educational process. this implies that when designing education, it is necessary to approach it not from the personality of a particular learner, but first of all from the goals of education related to future professional activity. person-centered education is the use of educational methods that correspond to the needs, abilities, interests and capabilities of the individual in the educational process. this approach conducts the educational process with an individual approach to the student. the main goal of this approach is to support the personal development of the student, to help him discover his potential. according to this essence, the following ideas are the leading directions in person-centered education: • individualization: using educational methods that are appropriate to the abilities and needs of each student. • self-development: teaching students to independently acquire knowledge, think and practice skills. • social adaptation: through person-centered education, students can adapt to social life and acquire skills for working in a team. • motivation: increasing students' internal motivation and knowing how to act to achieve their goals. american journal of business management, economics and banking volume 31 december 2024 p a g e | 108 www.americanjournal.org in such conditions, progress can only be achieved on the basis of the full realization of the existing capabilities of each individual. the volume, diversity of information, the tendency to master it, the sufficiency of tools create the necessary conditions for organizing effective individual and independent learning. in order to accelerate learning, the teacher's attitude towards the learner must change from "leader" to his "partner and collaborator". person-centered educational technologies serve to develop a person's mental abilities. this teaching technology is based on the following basic principles: •humanism, that is, showing all-round respect andlove to a person, helping him, trusting his creative abilities, and completely abandoning coercion; •cooperation, that is, democracy, equality, and partnership in the relationship between teachers and students; •free education, that is, giving a person the freedom and independence to choose his life activities within a wide or narrow framework, and generating results not from external influences, but from internal feelings. the communicative basis of person-oriented technologies is a human-personal approach to the learner in the pedagogical process. a new view of the individual consists of the following: in the pedagogical process, the individual is not an object, but a subject; high ethical values (generosity, love, hard work, conscience, etc.) are considered the most important qualities of a person. democratization of relations includes: equalization of the rights of the learner and the teacher, the learner's right to free choice; the right to make mistakes; the right to have one's own point of view the relationship between the teacher and the learners is as follows: not to prohibit; not to manage, but to co-manage; not to force, but to persuade; not to order, but to organize; not to limit, but to allow free choice. the main content of the new relations is the rejection of the pedagogy of violence, which in the current conditions does not give effective results and is considered inhuman. the problem is not in the absolutization of this principle, but in determining its rational criteria. in general, violence is impossible in the process of education, but punishment humiliates, oppresses, slows down the development of a person, and forms the features of slavery in him. free education is determined by: free demandingness based on trust; to arouse interest in the educational material, encourage knowledge and active creative thinking; to rely on the independence and initiative of learners; to ensure the implementation of requirements through indirect methods through the team. the essence of the new individual approach is that it requires a movement in the education system not from the subject to the learner, but from the learner to the subject, taking into account the existing capabilities of learners, aimed at their development, improvement and enrichment. the essence of the individual approach in person-centered education is to organize the educational process taking into account the specific needs, abilities, interests and capabilities of each learner. the main principles of this approach are as follows: 1. adaptability to the learner: taking into account the individual pace and method of development of each learner. for example, some learners learn quickly, while others take more time. a person-centered approach takes these differences into account and selects appropriate learning materials and methods. american journal of business management, economics and banking volume 31 december 2024 p a g e | 109 www.americanjournal.org 2. meeting individual needs: students may have different learning styles (visual, auditory, hands-on), as well as different interests and needs. this approach helps to meet the individual needs of each student. 3. supporting personal development: developing students' self-awareness, self-confidence, and independent thinking skills. this, in turn, helps them succeed in their personal and professional lives. 4. increasing motivation: person-centered education increases students' intrinsic motivation, as they have the opportunity to choose learning materials and activities that match their interests and needs. 5. adaptive assessment: using an individual approach also in assessing students' knowledge and skills. this ensures a fair and transparent assessment of students, taking into account their own stages of development and abilities. the modern new interpretation of the individual approach consists of: refusal of orientation to the average learner; search for the good qualities of the individual; drawing up individual programs for personal development. in an individual approach, the following are necessary, first of all: seeing each learner as a unique individual, respecting him, understanding, accepting, and believing in him. the teacher must have the conviction that all learners are talented. creating favorable, supportive, and favorable conditions for the individual, for achievement, that is, learning should bring satisfaction and joy. avoiding direct coercion, not emphasizing backwardness and other shortcomings, not touching his egoism. in the pedagogical process, creating opportunities and assisting learners to realize their abilities. in conclusion, it should be said that in person-centered education, compared to traditional education, not only does it develop the learner's creativity, independence, and free-thinking ability, but it also intensifies the process of his socialization. references 1. sh. shoyimova-“ta’lim texnologiyalari”.toshkent-2020 yil. «ijod print». 2. azizxo’jayeva n.n. pedagogik texnologiya va pedagogik mahorat. –t.: 2006. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 68 www.americanjournal.org corporate liquidity management and firm financial performance monday olade, izevbekhai (phd, acit) accountancy department, auchi polytechnic, auchi mondayizevbekhai75@gmail.com owa, frederick (phd, cna) delta state polytechnic, ogwashi-uku chukwumenimefred@yahoo.com a b s t r a c t k e y w o r d s this study examines corporate liquidity management and firm financial performance. the broad objective of the study is to examine the effect of receivable period on firm financial performance of listed consumer goods companies in nigeria and also to evaluate the effect of payable period on firm financial performance of listed consumer goods firms in nigeria. the secondary source of data collection was adopted in the study where the purposive sampling technique was used to select a sample size of ten (10) listed consumer goods firms in nigeria. ordinary least square regression analysis was used in this study and the findings revealed that payable period has significant effect on firm financial performance of listed consumer goods firms in nigeria and that inventory days has significant effect on firm financial performance of listed consumer goods firms in nigeria. the study recommended among others that management of listed firms should concentrate effort on reducing the high variability of accounts receivable period and that firms should emphasize to increase sales to increase inventory turnover to achieve maintainable competitive advantage through managing inventory to optimal level so as to maximize profitability. liquidity management, receivable period, payable period, inventory days. introduction the idea of liquidity and its management is crucial, especially in this time of global financial disruption and needs to be carefully considered and taken seriously especially in an economy where financial institutions are hesitant to extend credit facilities (loans) due to an increase in nonperforming loans and high interest rates on loans (prempeh & peprah-amankona, 2020). since it affects stakeholder trust, liquidity management is an essential part of any organisational environment that demands careful consideration, planning, and management. in order to prevent american journal of business management, economics and banking volume 23 april 2024 p a g e | 69 www.americanjournal.org illiquidity and ultimately bankruptcy, liquidity should be managed so that neither too much nor too little is available (majakusi, 2016; abdi & kavale, 2016; edem, 2017). businesses' primary objective of maximising profits has been forced by the need for shareholders to maximise their wealth. however, debt and equity—which stand for borrowed money and owned assets, respectively—make up a company's capital structures (umobong, 2015). the majority of a company's debt portfolio consists of shortand long-term debts that must be repaid with available funds. this definition of liquidity is the ease with which assets can be changed into cash and cash equivalents with the least amount of value loss. the opportunity cost of remaining liquid is the loss of earnings from not investing in higher-yielding assets. salim and bilal (2016) assert that a company's liquidity position or level dictates its capital structure. all creditors and investors are concerned about the company's capacity to meet its shortand longterm debts in good and bad times due to shifting market conditions. there is no universally applicable rule that specifies the optimal level of liquidity that a company should maintain, so the amount of liquidity that a company needs to maintain to reach a given level of profitability differs from company to company. panigrahi (2013) noted that when a financial analysis is done, the profitability of the enterprise is prioritised over its liquidity. this should be clear because making a profit is any business's primary financial goal. therefore, the managers give profitability more weight. the ability to turn a profit is known as profitability. profitability ratios are used in financial analysis to measure profitability. brealey (2012) states that payout ratio, net profit margin, return on equity (roe), and return on assets (roa) are examples of profitability ratios. on the other hand, a set of ratios is used to measure liquidity and determine an entity's liquidity position. these ratios, which include the cash, quick, and current ratios, indicate whether an organization will be able to pay its debts in the near future. an organization with low liquidity will find it difficult to fulfill its operational commitments and will ultimately be compelled to look for debt financing to keep things running. according to zygmunt (2013), given the importance of liquidity to business performance, one could conclude that it dictates profitability. this indicates that liquidity has a significant impact on a company's profitability and performance. the broad objective of this study is to examine the effect of corporate liquidity management on firm financial performance. however, the specific objectives include: i. to examine the effect of receivable period on firm financial performance of listed consumer goods companies in nigeria. ii. to evaluate the effect of payable period on firm financial performance of listed consumer goods firms in nigeria. iii. to investigate the effect of inventory days on firm financial performance of listed consumer goods firms in nigeria. the following are the hypotheses of the study stated in their null forms: i. receivable period has no significant effect on firm financial performance of listed consumer goods companies in nigeria. ii. payable period has no significant effect on firm financial performance of listed consumer goods firms in nigeria. iii. inventory days has no significant effect on firm financial performance of listed consumer goods firms in nigeria. american journal of business management, economics and banking volume 23 april 2024 p a g e | 70 www.americanjournal.org 2.0 review of related literature 2.1 conceptual review profitability profitability is the amount of money that a business can make using its available resources. most organisations want to maximise their profits. profitability demonstrates a company's capacity to generate earnings during a specific time period by utilising its assets. the ability of an organisation, firm, or company to profit from all of its business operations is known as profitability (muya & gathogo, 2018). typically, the entrepreneur receives profit as compensation for their investment. in actuality, an entrepreneur's primary driving force behind entering the market is profit. profit is another metric used to gauge a company's performance. the difference between sales revenue and total costs, which include labour, material costs, and other expenses—is known as profit. the primary objective of any business endeavour is to achieve profitability, which can be measured in either accounting or economic profits. profitability illustrates how well management uses the company's resources to turn a profit (muya & gathogo, 2018). businesses will therefore probably benefit greatly from higher profitability. being profitable is a crucial requirement for any company's long-term survival and success. investors are drawn to profitable businesses, and these enterprises are more likely to endure over the long run (farah & nina, 2016). many businesses work hard to increase their profitability, and they invest many hours in meetings to find ways to cut operating expenses while simultaneously boosting sales. profitability is a key performance indicator for the company. for many businesses, one of the most important components of financial reporting is profitability (farah & nina, 2016). since profitability provides a clear indicator of business performance, it is essential to the manager of the company as well as the owners and other stakeholders involved in or associated with the business. generally, performance could be regarded as one of the key factors that has been widely used in measuring success or failure of an organization. basically, the performance of a firm is categorized into two broad categories namely; financial performance and strategic performance. particularly, financial performance covers profitability performance, market value performance, and growth performance while the category of strategic performance includes employees’ satisfaction, customers’ satisfaction, environmental performance, environmental audit performance, and social performance. for the purpose of closing on research gaps in the sphere of account receivable management and corporate performance relationship, we adopt return on asset as a performance measure previously employed by (olaoye, & adekanbi, 2019). it serves as a performance indicator widely employed by financial analysis. liquidity the ability of an individual or organisation to meet shortand long-term needs with cash or easily convertible assets is referred to as liquidity. liquidity can also be defined by investors as the ability to quickly and with little to no value loss convert an investment portfolio into cash. since a firm's comprehension of liquidity and its management assures the company's survival, even as a stakeholder, all of these ideas are essential to a company's success (prempeh & peprah-amankona, 2020). the concept of financial liquidity is intricate yet crucial in characterising the stability and soundness of the financial system. since capital is necessary for any business to begin with, this highlights the importance of liquidity to the financial system as well as to all other industries. olaoye and adekanbi american journal of business management, economics and banking volume 23 april 2024 p a g e | 71 www.americanjournal.org (2019) defined liquidity in terms of flows; that is between participants in the financial system and the market, as well as the capacity to realise these flows. since the future is unpredictable, firms' management has been concerned about liquidity management. globally, it is gaining significant attention, particularly in light of the current global economic situation. additionally, the concerns of managers and owners of businesses everywhere is coming up with a plan for handling day-to-day operations so that they can fulfil their responsibilities on time, boost profitability, and enrich shareholders. it entails organising and managing current assets and current liabilities so as to: (i) mitigate the risk of failing to pay short-term obligations when they become due; and (ii) prevent making excessive investments in current assets. since the majority of the proxies used to measure corporate liquidity are functions of working capital components, the concept of liquidity management is examined from the working capital management perspective. two concepts of working capital that are important to management are (i) gross working capital and (ii) net working capital, according to priya and nimalathasan (2013). the amount and method of financing a company invests in current assets is known as its gross working capital. conversely, the firm's liquidity position and the possibility of financing working capital requirements through longterm funding sources are indicated by the net working capital. current liabilities minus current assets equals net working capital. depending on the amount of current assets and current liabilities, it might be positive or negative. as a result, investing in current assets should only be sufficient to cover current liabilities because having too many or too few current assets puts the company at risk. the regular process of overseeing a company's investments in current assets, current liabilities, shortterm borrowings, and short-term investments of excess cash that impact the company's profitability is known as liquidity management. money and other assets that are easily converted into cash make up current assets. by definition, cash is the most liquid asset type; other assets have different levels of liquidity based on how easily they can be turned into cash. any kind of liability that will mature for payment within a year, such as trade creditors, bank overdrafts, bills payable, unpaid expenses, etc., is included in the category of current liabilities. an asset-liability mismatch that arises during business operations may boost a company's profitability in the near term but raise the possibility of its insolvency. however, if liquidity is prioritised over profitability, this will happen. as a result, it can be observed that the management of current assets is central to liquidity management, which is quantified through the use of ratios like the ccc, appp, arcp, icp, inventory turnover (it), accounts receivable turnover (art), and accounts payable turnover (apt). usually, a company's working capital and liquidity requirements are determined by the same factors (olaniyi, ayo & nzewi, 2019). on the other hand, having more liquidity than the company needs to fund its operations could be detrimental. therefore, the total amount of funds invested in those assets is greatly impacted by the rates at which current assets are turned over relative to all sales over a specific time period. receivable period farouk and hassan (2014) posit that deficient working capital management policies stem from choices made in relation to credit policy, collection period, inventory planning, the company's purchasing practises, account payable period, growth rate, and hedging strategy. manufacturing companies that tighten their credit policies free up cash by lowering the amount of outstanding accounts receivable. on the other hand, a decrease in net sales could be compensatory. similar to this, american journal of business management, economics and banking volume 23 april 2024 p a g e | 72 www.americanjournal.org a more vigorous collection strategy ought to produce quicker collections, which lowers the overall amount of accounts receivable. this is a cash source, but suppliers might raise their rates in response. rapid business growth necessitates significant variations in working capital from month to month as the company must invest in an increasing amount of inventory and accounts receivable (prempeh & peprah-amankona, 2020). it is possible to lessen the issue by also slowing down the growth rate. unexpected changes in working capital are less common when a company actively employs hedging strategies to create offsetting cash flow, however, the hedging transactions themselves will incur transaction costs. it is expected that a well-thought-out and implemented working capital management strategy will improve the performance of the company. a company's profitability may drop if it has too much working capital on hand (frank & james, 2014). overinvestment in receivables and inventory reduces profits for the company, but underinvestment raises the possibility that obligations won't be met when they're due. therefore, every organisation needs to understand the significance of keeping working capital at a sufficient level and how it contributes to corporate sustainability. according to miko and ajagbonna (2019), who held similar views, effective working capital management entails, on the one hand, avoiding excessive investment in these assets and, on the other, planning and controlling current assets and current liabilities in a way that eliminates the risk of being unable to meet due short-term obligations. a crucial component of financial management, working capital management is critical to any company's ability to survive. ksenija (2013) posits that accounts receivable measures the unpaid claims that a firm has over its customers at a given period. it usually comes in the form of operating line of credit. it is usually due within a relatively short period up to one year. accounts receivables are debts owed a firm by her valuable customers that are trusted with the goods and services after taking into consideration the character and integrity of the customer. according to ksenija (2013), the competitive nature of business environment makes it imperative for firms to adjust their action plans and use financial policies to not only remain alive but also grow. payable period otekunrin, fagboro, nwanji, asamu, ajiboye and falaye (2019) acknowledged two significant approaches to determining a firm’s working capital, which are the balance sheet and operating cycle approach. different authors have discovered many approaches to analyzing the working capital of various entities. good wcm involves striking an appropriate balance between companies’ current assets and liabilities. part of the variables used as a proxy for wcm is the trade receivables collection period (trcp). accounts receivable can be either trade credit or consumer credit or both. an essential consideration in trade receivable is credit policy variables. this policy comes with two options to offer. firstly, they could choose not to offer credit to customers no matter how strong their credit ratings are. secondly, they could also offer credit to all customers no matter their credit ratings. however, to steer clear of bad debts, before granting credit to the customer, it is vital to consider the customer’s credit rating. trade payables payment period (tppp) is also an important component used to appraise the effectiveness of wcm (olaniyi, ayo, and nzewi, 2017). it is also used as a proxy for wcm in this study. trade payables embody a substantial percentage of short-term finance to the organization as it enables them to pay outstanding debts to their suppliers over a short period of time. there are american journal of business management, economics and banking volume 23 april 2024 p a g e | 73 www.americanjournal.org instances where using trade payables as a source of finance may be free or costly. it is free if there are no costs for using it, such as if no discounts are being offered by the seller. on the other hand, it is costly if the seller offers a discount, and the company may have to lose out on such discounts (njue, 2020). whenever a significant part of a firm’s assets is tied up in sundry debtors, the accuracy achieved in estimating the provision for doubtful debts will assume a special importance. consequently, the author attempted to build a statistical model to increase the level of accuracy in such estimation. researchers have studied accounts receivable individually but mostly as a part of working capital management, they did so from various angles and points of view. inventory days the term "inventory" refers to the goods for sale as well as the raw materials utilized to make those goods. inventory is one of a company's most valuable assets because inventory turnover is one of the key sources of revenue production and, as a result, earnings for the company's shareholders. a company's inventory is its collection of finished items or goods utilized in production. on a company's balance sheet, inventory is categorized as a current asset, and it serves as a buffer between manufacturing and order fulfillment. when an inventory item is sold, its carrying cost is transferred to the income statement's cost of goods sold (cogs) category (prempeh & peprah-amankona, 2020). there are three methods for valuing inventory. in the first-in, first-out (fifo) method, the cost of the earliest materials purchased determines the cost of the goods sold, while the cost of the most recent materials purchased determines the carrying cost of the inventory that remains. in the last-in, firstout (lifo) method, the cost of the most recent materials purchased is used to determine the value of the goods sold, while the earliest materials purchased determines the value of the inventory that remains. in the weighted average method, the average cost of all materials purchased during the period must be used to value both inventory and the cost of goods sold. maintaining stock levels of a specific group of items at the lowest possible cost while adhering to other pertinent targets and objectives established by management is the art and science of inventory management. it is crucial that managers in a company handling inventory to keep in mind the goals of meeting customer demands and minimising expenses. one type of administrative control that is especially important in all manufacturing, wholesale, and retail organisations is inventory management. dzapasi (2020) states that having the appropriate goods in the right quantity and quality at the right location, at the right time is the essence of inventory. the supply chain network requires this procedure in order to safeguard the production system from disruptions of any kind. inventory control, also known as inventory management, is a policy that is intended to determine the most costeffective amount of raw materials to purchase and maintain in the warehouse in order to minimise the total cost of inventory management. according to this definition, the policy is a system created to ensure that the appropriate amount and quality of raw materials are purchased at the appropriate cost during a specific time frame. inventory days is a valid predictor of the profitability of a firm; this is because inventories are assets of the firm held for the purpose of turning these assets into cash to realize a profit. however, where inventory is not converted into cash, the working capital will be tied up in them, thereby restricting the liquidity of the firm, as well as their profitability. an optimal itp would help an organization increase its comparative advantage in terms of higher profitability. the overall measure for wcm is american journal of business management, economics and banking volume 23 april 2024 p a g e | 74 www.americanjournal.org the cash conversion cycle (ccc). it is derived from the summation of trcp, tppp and itp. hence, in this study, it is the last proxy used for wcm. it is the period when raw materials are purchased to when cash would be received from customers (majakusi, 2016). the primary focus is on the period between when a firm pays for raw materials and when cash is received from customers. lesser ccc is more beneficial to the firm than long or longer ccc. 2.2 theoretical framework trade-off theory, net income theory (nit), net operating income theory and pecking order theory are relevant to this study. however, this study will be anchored on pecking order theory. pecking order theory in the face of knowledge asymmetry in the source of finance, the pecking order theory of capital structure illustrates how managers might lower inefficiencies. the studies of myers and majluf are said to have influenced the development of the pecking order idea in 1984. their hypothesis, however, was centered on donaldson's belief that what motivates a management financing policy is their aspirations, which lead to financial decisions targeted at decreasing organizational mismanagement based on information asymmetry. companies will choose a less expensive form of financing because management is also concerned about maximizing profit. according to the structure of the pecking order theory, a company's retained earnings are used first, then debt is issued, and finally, equity is issued as a last resort. the study by titman and wessels (1988) reveals that more lucrative enterprises will require less external finance, supporting the pecking order idea. according to frank and goyel (2003), larger organizations have an easier time deciding on the optimal source of finance than smaller firms. this study is centered on pecking order theory since it’s immaterial in determining a firm's profitability under ideal market conditions, capital structure theories became prominent. a company's capital structure consists of its stock and debt to achieve its goals. for businesses, determining the best capital structure to minimize capital costs while maximizing value remains a challenge. this research assumes that a company's capital structure impacts its liquidity levels and situations. 2.3 empirical review receivable period and firm financial performance the relationship between working capital management and financial performance of material manufacturing companies in nigeria was investigated by olaniyi, ayo and nzewi (2019). the study is based on the principle of fisher separations. ex-post factor research was used in this study. financial statements of the sampled firms were extracted using secondary sources of data from 2001 to 2015. using random sampling techniques and an ordinary least square regression model, it was discovered that debtors and creditors of inventory have no meaningful link with manufacturing enterprises' return on investment in nigeria. the study concluded that wcm has two categories: conservative and aggressive. the impact of total quality management on the performance of nigerian deposit money institutions was researched by ezenyilimba, ezejiofor and afodigbueokwu (2019). data was obtained via surveys and presented in a tabular style using the t-test version 20.0 of the statistical package for social science (spss). the findings show that total quality management practices have aided in achieving improved quality output and cost redundancy in nigerian deposit money banks, as well as american journal of business management, economics and banking volume 23 april 2024 p a g e | 75 www.americanjournal.org total quality management practices have aided in achieving improved quality output and cost redundancy in nigerian deposit money banks. ijeoma & ezejiofor (2013) used audited financial statements of a sample of 11 metal manufacturing private limited companies in addis ababa, ethiopia, for the years 2008 to 2012 to investigate the effect of working capital management on firms performance. spss (version 20.0) was used to analyses the data; estimation equations for cross-sectional and time-series data were derived using both pooled panel data regression models and correlation analysis. the findings showed that lower profitability is linked to longer periods for holding inventory and accounts receivable. the outcome additionally demonstrates a noteworthy inverse correlation between the sample firms' profitability metrics and their cash conversion cycle. no significant relationship between cash conversion cycle; accounts receivable period; inventory conversion period and account payable period with return on investment capital was been observed. payable period and firm financial performance njue (2020) observed that enterprises use more short-term debt financing in their operations when analyzing the effect of capital structure on the profitability of ghanaian listed firms. the study discovered that short-term debt is a significant source of funding for businesses. in the quest for profit maximization, the basis of liquidity is critical, yet most businesses struggle to discover the appropriate amount that will minimize costs while maximizing advantages. the ideal capital structure maximizes the market value of the firm's outstanding shares. moussa (2019) investigated management of working capital, company performance, and type of business. data were gathered for this study from 414 non-financial companies listed on the bombay stock exchange between 2012 and 2018. in the presence of liquidity, leverage, size, age, and growth as control variables, fixed-effect regression models were performed with tobin's q and return on equity (roe) as dependent variables and net trade cycle (ntc) and its components as explanatory variables. the performance of the sample firms is strongly influenced by wcm efficiency. indian non-financial companies outperform their peers in terms of profitability by retaining lower ntc. its constituents affect firm value and profitability in a similar way to ntc. the findings indicate that the relationship's importance varies based on the type of business the firm does. dabo, andow, and peter (2020) sought to know if working capital management affect profitability of ghanaian manufacturing firms. the relationship between working capital management and business profitability in developing nations is examined in this study. eleven (11) manufacturing companies listed between 2011 and 2017 on the ghana stock exchange comprised a balanced panel. using the dynamic panel regression (arellano-bond estimation) technique, the relationship between working capital management and profitability was investigated. the research findings indicate a statistically significant positive linear correlation between the profitability of firms and their working capital management. the results also show that working capital management and firm profitability have a concave quadratic relationship. managers must make sure they operate within the parameters of the optimal level by putting in place an effective and efficient working capital management policy. simon, sawandi, and abdul-hamid (2017) studied the impact of working capital management on firm performance 45 non-financial companies that were listed between 2006 and 2015 on the pakistan stock exchange comprise the study's sample. the return on assets is used to gauge the performance of the company, whereas working capital management is assessed using the cash conversion cycle. american journal of business management, economics and banking volume 23 april 2024 p a g e | 76 www.americanjournal.org the four life cycle stages of the sample firms are: initial, rapid growth, mature, and revival. regression models with panel data have been used to predict the significant relationship. the results imply that the cash conversion cycle has a substantial positive correlation with performance during the maturity and revival phases of the life cycle, but a significant negative correlation with performance during the early, fast growth stages. therefore, a company's working capital management policy shouldn't be the same across all organisational life cycle stages if it wants to improve performance. inventory days and firm financial performance anene (2018) analyzed inventory management performance of corporate india by using three financial parameters cash conversion efficiency days operating cycle and days inventory and by assigning them different weights in the overall score, to rank and analyse inventory management performance. this study provides the estimates by using data of 427 companies over the period 199899 to 200001 for each company and for each industry. the presence of these three in the overall inventory performance criterion not only helps in performance evaluation but also will capture the dynamics of risk-return tradeoff. anichebe and agu (2017) investigated a research about the effect of inventory management on the pakistani firms. a sample of 94 pakistani firms listed on karachi stock exchange from different sectors of the pakistani economy for a period of 6 years 1999 to 2004 were selected. the study considered inventory turnover in days, average collection period, average payment period cash conversion cycle, as independent variables, and net operating profitability of pakistani firms considered dependent variable. the current ratio was considered as a traditional measure of liquidity, while the size of the firm (natural logarithm of sales), debt ratio and financial assets to total assets ratio all have been used as a control variable. panel data regression analysis of cross-sectional and time series data analysis was used which are the quantitative (pearson correlation model, regression analysis) and the descriptive using spss. 3.0 analytical framework and model specification the ex-post factor research design is used in this study due to the fact that the variables cannot be manipulated by the researcher. this method was adopted since social scientific research problems do not lend themselves to experimental and controlled inquiry of the ex-post factor kind. also, this research design makes it impossible to select, control and manipulate the factors necessary to study cause-and-effect relationships directly. the population of this study consists of nigerian listed companies on nigerian stock exchange as at 31st december, 2021. the population comprises of one hundred and fifty six (156) firms listed on nigerian exchange group (ngx). since the entire listed firms cannot be used for the study, the study is limited to ten (10) consumer goods firms listed on the nigeria exchange group (ngx). the basic criteria of selecting these firms are the capitalization prowess and their specialization. in selecting the sample, purposive sample technique was used to derive the sample size. the purposive sampling was used to ensure that the sample represents a diversity of perspectives. the secondary source of data collection was used for this study where data was gathered from audited annual reports of selected consumer goods firms listed on the nigeria exchange group (ngx). however, for the purpose of this study, 10 years (2012 – 2021) annual reports of the 10 selected american journal of business management, economics and banking volume 23 april 2024 p a g e | 77 www.americanjournal.org consumer goods firms were adopted. the study used ordinary least square (ols) regression analysis method to investigate the impact of independent variables on dependent variable. a multiple linear regression model was used to establish the significance of the model. the results obtained from the model are presented in tables to aid and ease the analysis. model specification the study employed multiple regression technique of analysis using least squares regression estimation. this method was adopted because it enhance easy presentation and interpretation of data. the empirical model of the study is mathematically expressed as follows; pfrmit = β0 + β1rvpdit + β2pbpdit + β3ivdyit + ɛit β0 = constant β1β3 = coefficient of parameters estimated pfrm = firm financial performance rvpd = receivable period pbpd = payable period ivdy = inventory days ɛit = error term 4.0 estimation techniques and discussion of findings table 4.1: descriptive statistics variable obs mean std. dev. min max pr(skewness) pr(kurtosis) prob>chi2 pfrm 78 7.339359 .482306 6.54 8.39 0.0566 0.0006 0.0064 rvpd 78 88.68844 8.998392 57.55 98.68 0.0000 0.0165 0.0001 pbpd 78 73.20692 14.59759 43.04 100 0.0997 0.0244 0.0540 ivdy 78 6.897821 .5202812 5.82 7.88 0.0199 0.1723 0.0282 source: researcher’s computation using stata table 4.1 presents the summary of the descriptive statistics for the dependent and independent variables for seven seventy-seven (77) observations. it shows that performance measure has a mean value of about 7.3394 and a standard deviation of about 0.4823. the maximum value of the variable is 8.39 while the minimum is 6.54. the maximum values for all other variables are 98.68, 100 and 7.88 the minimum for all the variables are 57.55, 43.04 and 5.82 respectively. for receivable period, mean value is 88.688 and standard deviation of 8.998. the corresponding values for the others are: payable period, 73.2069 and 14.598 respectively; inventory days 6.8978 and 0.5202 respectively. the p-values of the skewness and kurtosis statistics show that nearly in all the cases the data are judged to be normally distributed at 5% level of significance. table 4.2: correlation matrix pfrm rvpd pbpd ivdy pfrm 1.0000 rvpd 0.5947 1.0000 pbpd 0.0351 -0.2159 1.0000 ivdy 0.9289 0.6465 -0.0866 1.0000 source: researcher’s computation using stata american journal of business management, economics and banking volume 23 april 2024 p a g e | 78 www.americanjournal.org table 4.2 shows that there are mixed correlations between the various variables used in the study. the table shows positive correlations between performance measure and payable period and the other two. no two of the explanatory variables are perfectly correlated or nearly so. thus, the problem of multicolinearity is absent in this model. 4.1 testing of hypotheses test statistic the statistical tool used in testing the stated hypotheses is the regression test procedure which uses the individual significance test (t-test) and the overall significance test (chi-squared-test). the goodness of fit of the model is tested using the coefficient of determination. the estimation of these statistics is done using the stata computer software. significance level the level of significance adopted in this study in testing the stated hypotheses of this study is 5%. this level is usually considered adequate for studies in management and other behavioural sciences. decision rule the critical p-value used in these tests is 0.05. thus, the researcher accepts a given alternative hypothesis as being accepted if calculated p-value is less than or equal to 0.05, otherwise the researcher accepts the null hypothesis that there is no significant effect. table 4.3: summary of regression result variable ols regression robust regression rvpd 0.0012(0.678) 0.0123(0.000) pbpd 0.0040(0.006) 0.0012(0.000) ivdy 0.8529)(.000) 0.8135(0.000) _cons 1.0487(0.001) 0.2476(0.342) f-stat 172.91(0.0000) 278.88(0.0000) n 77 77 vif 1.53 heteroscedasticity 8.05(0.0046) r-squared 0.8766 adj r-squared 0.8716 source: researcher’s computation using stata table 4.3 shows that the explanatory variable does not account for much of the systematic variations in the dependent variable. the table shows very moderate value of r-squared of 0.8766. this value of the r-squared statistic shows that the explanatory variables are collectively able to explain about 88% of the variations in the dependent variables meaning that other variables are minimally useful in explaining changes in the dependent variable. for the model, the p-value of the f statistic (0.0451) shows that the model overall is suitable for estimating the stated model. the vif test (1.25) shows that there is the absence on multi-colinearity and so there is no need to drop any variable. also, the heteroscedasticity is 8.05 with p-value of 0.0046, showing that there significant heteroscedasticity problem and so the need for a robust regression. american journal of business management, economics and banking volume 23 april 2024 p a g e | 79 www.americanjournal.org with a coefficient of 0.0123 the results indicate that receivable period positively impacts return on assets, while the probability value of 0.000 indicates that the negative impact is significant. this leads to the rejection of the null hypothesis, thus acceptance of the alternative hypothesis that receivable period has a significant impact on financial performance listed consumer goods companies in nigeria, and the impact is positive. with a coefficient of 0.0049 the results indicate that payable period positively impacts financial performance listed consumer goods companies in nigeria, while the probability value of 0.000 indicates that the negative impact is significant. this leads to the acceptance of the alternative hypothesis, thus the rejection of the null hypothesis. the researcher accepts that payable period significantly impacts performance of listed deposit banks in nigeria, and that such effect is positive. with a coefficient of 0.8144 the results indicate that inventory days positively impacts financial performance listed consumer goods companies in nigeria while the probability value of 0.000 indicates that the positive impact is significant because it is less than 0.05. this leads to the acceptance of the alternative hypothesis, thus rejecting the null hypothesis. the researcher accepts that inventory days significantly affect financial performance listed consumer goods companies in nigeria. discussion of findings the results indicate that almost all the variables are significantly normally distributed at 5% level of significance. the correlation matrix indicates the variables have mixed relationships. the results also indicate the absence of multi-colinearity. essentially, the findings of the study are: with a coefficient of 0.0123 the results indicate that receivable period positively impacts return on assets, while the probability value of 0.000 indicates that the negative impact is significant. this leads to the rejection of the null hypothesis, thus acceptance of the alternative hypothesis that receivable period has a significant impact on financial performance listed consumer goods companies in nigeria, and the impact is positive. the result agrees with consistent with the findings of olaniyi et al. (2019), but was not consistent with the findings of ezenyilimba et al. (2019). this inconclusiveness may have resulted from the existence of varying degrees of institutional backdrops. similarly, with a coefficient of 0.0049 the results indicate that payable period positively impacts financial performance listed consumer goods companies in nigeria, while the probability value of 0.000 indicates that the negative impact is significant. this leads to the acceptance of the alternative hypothesis, thus the rejection of the null hypothesis. the researcher accepts that payable period significantly impacts performance of listed deposit banks in nigeria, and that such effect is positive. the result agrees with the findings of moussa (2019), nijue (2020) and dabo et al. (2020) but not consistent with the findings of simon et al. (2017). with a coefficient of 0.8144 the results indicate that inventory days positively impacts financial performance listed consumer goods companies in nigeria while the probability value of 0.000 indicates that the positive impact is significant because it is less than 0.05. this leads to the acceptance of the alternative hypothesis, thus rejecting the null hypothesis. the researcher accepts that inventory days significantly affect financial performance listed consumer goods companies in nigeria. the result agrees with the findings of anichebe and agu (2017), ijeoma and ezejiofor (2013) but not consistent with the finding of anene (2018). this might have been as a result of using different industrial sectors. american journal of business management, economics and banking volume 23 april 2024 p a g e | 80 www.americanjournal.org 5.0 conclusion and policy recommendations conclusion the cardinality of liquidity management in any organisation cannot be over emphasised. this is because either inadequate liquidity or excess liquidity may be injurious to the smooth operations of the organization. the study has provided empirical evidence on the utility of three independent variables of liquidity management (receivable period, payable period and inventory days) in explaining firm financial performance of consumer firms listed in nigeria. liquidity management is a critical component of any organizational environment that necessitates careful consideration, planning, and management because it influences the level of trust among stakeholders. liquidity should be controlled such that neither too much nor too little is available as firms with poor liquidity management experience illiquidity and eventually bankruptcy. the need for shareholders to maximize their wealth has forced the primary goal of profit maximization for businesses. firms' capital structures, however, are made up of debt and equity, which refers to borrowed funds and owned assets, respectively. a company's debt portfolio is mostly made up of shortand long-term obligations that can only be paid if liquidity is available. policy recommendations the following recommendations are hereby made: i. management of listed firms should concentrate effort on reducing the high variability of accounts receivable period ii. firms should emphasize to increase sales to increase inventory turnover to achieve maintainable competitive advantage through managing inventory to optimal level so as to maximize profitability. iii. management of these companies in nigeria should exercise caution while dealing with stock/investors, at the very least to guarantee that their stock levels do not fall below the minimum stock level. references 1. abdul, a. & kavale, s. 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(2013). does liquidity impacts on profitability? a case of polish information technology companies. conference of informatics and management sciences, 25(9), 247-251 american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 18 www.americanjournal.org a mixing problem for a quasi linear equation with particular derivatives with some late argument a. kalandarov guldu “matematika” kafedrasi kata o‘qituvchisi e-mail: abdukayumkalandarov1948@gmail.com m. m. anorbayev guldu “matematika” kafedrasi o‘qituvchisi e-mail: madaminanorbayev254@gmail.com i. j. jangibayev guldu “matematika” kafedrasi o‘qituvchisi gdpi“matematika” kafedrasi o‘qituvchisi e-mail: mr.jiu_newlife1992@bk.ru a b s t r a c t k e y w o r d s in the work, the solutions of the mixed problem set for the quasi – linear partial differential equation with some delayed arguments were studied, and algorithm for finding its numerical solutions was solved by the finite difference method. mixed problem, delayed argument, quasi linear, numerical solutions, algorithm, finite diffence method, transporent and non revealing schemes, driving. introduction in the work, the solutions of the mixed problem set for the quasi – linear partial differential equation with some delayed arguments were studied, and algorithm for finding its numerical solutions was solved by the finite differince method. некоторые смешанная задача для квазилинейного уравнения с частными производным с запаздывающим аргументом abstract в данной работе решается смешанная задача для квазилинейного дифференциального уравнения с запаздывающим аргументом, задача решается методом конечных разностей. составляется алгоритм численного решения american journal of business management, economics and banking volume 24 may 2024 p a g e | 19 www.americanjournal.org in the article, the quasi – linear equation of the hyperbolic type with delayed argument 𝑄 = {𝜏 ≤ 𝑡 ≤ 𝑇, 0 ≤ 𝑥 ≤ 𝑙, 0 ≤ 𝑦 ≤ 𝑚} in the area 𝜕2𝑢 𝜕𝑡2 = 𝑎2( 𝜕2𝑢 𝜕𝑥2 + 𝜕2𝑢 𝜕𝑦2 ) + 𝑏2 ( 𝜕2𝑢(𝑡 − 𝜏, 𝑥, 𝑦) 𝜕𝑥2 + 𝜕2𝑢(𝑡 − 𝜏, 𝑥, 𝑦) 𝜕𝑦2 ) + +𝑓(𝑡, 𝑥, 𝑦, 𝑢(𝑡, 𝑥, 𝑦), 𝑢(𝑡 − 𝜏, 𝑥, 𝑦), 𝑢𝑡(𝑡, 𝑥, 𝑦), 𝑢𝑡(𝑡 − 𝜏, 𝑥, 𝑦)) (1) ( 𝑡, 𝑥)𝜖𝐸 = {0 ≤ 𝑡 ≤ 𝜏, 0 ≤ 𝑥 ≤ 𝑙, 0 ≤ 𝑦 ≤ 𝑚} start when 𝑢(𝑡, 𝑥, 𝑦) = 𝜑(𝑡, 𝑥, 𝑦) 𝑢𝑡(𝑡, 𝑥, 𝑦) = 𝜑𝑡 ′(𝑡, 𝑥, 𝑦) } (2) gwin the initial internal conditions when the tsist τ≤ 𝑡 ≤ 𝑇 𝑢(𝑡, 0, 𝑦) = 0 𝑢(𝑡, 𝑙, 𝑦) = 0 } 0 ≤ 𝑦 ≤ 𝑚 𝑢(𝑡, 𝑥, 0) = 0 𝑢(𝑡, 𝑥, 𝑚) = 0 } 0 ≤ 𝑥 ≤ 𝑙 (3) the problem of finding a satisfactory solution of homogeneous boundary conditions by the finite this overael this issue of the existence and uniqueness of generalized solutions was discussed by the author in we introduce the notation for. q lets’ mesh the area 𝑡𝑘 = 𝑘𝜏, 𝑥𝑖 = 𝑖𝛥, 𝑦𝑗 = 𝑗ℎ that, the grid function 𝑢(𝑡𝑘, 𝑥𝑖 , 𝑦𝑖) = 𝑢𝑖𝑗 𝑘 lits’ enter the designations. 𝑖 = 0,1,2, … , 𝑁, 𝑗 = 0,1,2, … , 𝑃, 𝑘 = 0,1,2, … , 𝑀, 𝑀𝜏 = 𝑇, 𝑁𝛥 = 𝑙 , 𝑃ℎ = 𝑚 (2) from the initial conditions (t,x,y)𝜖𝐸 when( 𝑘 = 0 va 𝑘 = 1 da ) 𝑢𝑖𝑗 0 = 𝜑(0, 𝑥𝑖 , 𝑦𝑗) 𝑢𝑖𝑗 1 −𝑢𝑖𝑗 0 𝜏 ≈ 𝜑𝑡 ′(𝜏, 𝑥𝑖, 𝑦𝑗) (4) 𝑢𝑖𝑗 1 ≈ 𝑈𝑖𝑗 0 + 𝜏𝜑𝑡 ′(𝜏, 𝑖𝛥, 𝑗ℎ) = 𝜑(0, 𝑖𝛥, 𝑗ℎ) + 𝜏𝜑𝑡 ′(𝜏, 𝑖𝛥, 𝑗ℎ) (5) (3) from the boundary conditions 𝑢0𝑗 𝑘 = 0 , 𝑢𝑁𝑗 𝑘 = 0 , 𝑢𝑖0 𝑘 = 0 , 𝑢𝑖𝑝 𝑘 = 0 (6) we will have values. the values of u(t,x,y) are given on the sides and base of the sphere q. using the above, we find the numerical values of 𝑢(𝑡, 𝑥, 𝑦) at the internal nodes of the field q. we may use the follaving non – disclosure schemes without general permussion: 𝑢𝑖𝑗 𝑘+1 − 2𝑢𝑖𝑗 𝑘 + 𝑢𝑖𝑗 𝑘−1 𝜏2 = 𝑎2 ( 𝑢𝑖+1,𝑗 𝑘+1 − 2𝑢𝑖𝑗 𝑘+1 + 𝑢𝑖−1,𝑗 𝑘+1 𝛥2 + 𝑢𝑖,𝑗+1 𝑘 − 2𝑢𝑖𝑗 𝑘 + 𝑢𝑖,𝑗−1 𝑘 ℎ2 ) + +𝑏2( 𝑢𝑖+1,𝑗 𝑘 −2𝑢𝑖𝑗 𝑘 +𝑢𝑖−1,𝑗 𝑘 𝛥2 + 𝑢𝑖,𝑗+1 𝑘 −2𝑢𝑖𝑗 𝑘 +𝑢𝑖,𝑗−1 𝑘 ℎ2 ) + 𝑓𝑖𝑗 𝑘 (7) or 𝑢𝑖𝑗 𝑘+1 − 2𝑢𝑖𝑗 𝑘 + 𝑢𝑖𝑗 𝑘−1 𝜏2 = 𝑎2 ( 𝑢𝑖+1,𝑗 𝑘 − 2𝑢𝑖𝑗 𝑘 + 𝑢𝑖−1,𝑗 𝑘 𝛥2 + 𝑢𝑖,𝑗+1 𝑘+1 − 2𝑢𝑖𝑗 𝑘+1 + 𝑢𝑖,𝑗−1 𝑘+1 ℎ2 ) + +𝑏2( 𝑢𝑖+1,𝑗 𝑘 −2𝑢𝑖𝑗 𝑘 +𝑢𝑖−1,𝑗 𝑘 𝛥2 + 𝑢𝑖,𝑗+1 𝑘 −2𝑢𝑖𝑗 𝑘 +𝑢𝑖,𝑗−1 𝑘 ℎ2 ) + 𝑓𝑖𝑗 𝑘 (71) comes out. here 𝑓𝑖𝑗 𝑘 = 𝑓(𝑘𝜏, 𝑖𝛥, 𝑗ℎ, 𝑢(𝑘𝜏, 𝑖𝛥, 𝑗ℎ), 𝑢((𝑘 − 1)𝜏, 𝑖𝛥, 𝑗ℎ), (𝑢(𝑘𝜏, 𝑖𝛥, 𝑗ℎ) − 𝑢((𝑘 − 1)𝜏, 𝑖𝛥, 𝑗ℎ))/ τ, (𝑢((𝑘 − 1)𝜏, 𝑖𝛥, 𝑗ℎ) − 𝑢((𝑘 − 2)𝜏, 𝑖𝛥, 𝑗ℎ))/τ)) τ≤ 𝑡 ≤ 2𝜏 if we have, we will select the driving mode for the above undisclosed circuit. (7) in scheme 𝑘 = 1 𝑢𝑖𝑗 2 − 2𝑢𝑖𝑗 1 + 𝑢𝑖𝑗 0 = american journal of business management, economics and banking volume 24 may 2024 p a g e | 20 www.americanjournal.org = 𝑎2𝜏2 𝛥2 (𝑢𝑖+1,𝑗 2 − 2𝑢𝑖𝑗 2 + 𝑢𝑖−1,𝑗 2 ) + 𝑎2𝜏2 ℎ2 (𝑢𝑖,𝑗+1 1 − 2𝑢𝑖𝑗 1 + 𝑢𝑖,𝑗−1 1 ) + 𝑏2𝜏2 𝛥2 (𝑢𝑖+1,𝑗 1 − 2𝑢𝑖,𝑗 1 + 𝑢𝑖−1,𝑗 1 ) + 𝑏2𝜏2 ℎ2 (𝑢𝑖,𝑗+1 1 − 2𝑢𝑖,𝑗 1 + 𝑢𝑖,𝑗−1 1 ) + 𝜏2𝑓𝑖𝑗 1 (8) then the differential equation looks like this: 𝑎𝑖𝑗 1 𝑢𝑖−1,𝑗 2 + 𝑏𝑖𝑗 1 𝑢𝑖,𝑗 2 + 𝑐𝑖𝑗 1 𝑢𝑖+1,𝑗 2 = 𝐹𝑖,𝑗 1 (9) here, 𝑎𝑖𝑗, 1 𝑏𝑖𝑗 1 , 𝑐𝑖𝑗 1 , 𝐹𝑖𝑗 1 -coefficients are fixed numbers resulting from the expression (8) from (9) as je 1 𝑎𝑖1 1 𝑢𝑖−1,1 2 + 𝑏𝑖1 1 𝑢𝑖,1 2 + 𝑐𝑖1 1 𝑢𝑖+1,1 2 = 𝐹𝑖,1 1 (10) we use the driving method to solve this differencial equation: at i=1 𝑎11 1 𝑢01 2 + 𝑏11 1 𝑢11 2 + 𝑐11 1 𝑢21 2 = 𝐹11 1 (111) from this 𝑢11 2 , 𝑢21 2 we express it linearly 𝑢11 2 = 𝐿11 1 𝑢21 2 + 𝐾11 1 (121) we will have patience, in this 𝐿11 1 = − 𝑐11 1 𝑏11 1 , 𝐾11 1 = 𝐹11 1 𝑏11 1 (131) in 𝑖 = 2, (10) from 𝑎21 1 𝑢11 2 + 𝑏21 1 𝑢21 2 + 𝑐21 1 𝑢31 2 = 𝐹21 1 (112) (121) if we use 𝑎21 1 (𝐿11 1 𝑢21 2 + 𝐾11 1 ) + 𝑏21 1 𝑢21 2 + 𝑐21 1 𝑈31 2 = 𝐹21 1 now 𝑢21 2 ni 𝑢31 2 letus linearey express u by us 𝑢21 2 = 𝐿21 1 𝑢31 2 + 𝐾21 1 (122) is formed, in which, 𝐿21 1 = − 𝑐21 1 𝑎21 1 𝐿11 1 +𝑏21 1 , 𝐾21 1 = 𝐹21 1 −𝑎21 1 𝐾11 1 𝑎21 1 𝐿11 1 +𝑏21 1 (132) etc when i=n-1 𝑎𝑁−1,1 1 𝑢𝑁−2,1 2 + 𝑏𝑁−1,1 1 𝑢𝑁−1,1 2 + 𝑐𝑁−1,1 1 𝑢𝑁1 2 = 𝐹𝑁−1,1 1 (11𝑁−1) 𝑎𝑁−1,1 1 (𝐿𝑁−2,1 1 𝑢𝑁−1,1 2 + 𝐾𝑁−2,1 1 ) + 𝑏𝑁−1,1 1 𝑢𝑁−1,1 2 + 𝑐𝑁−1,1 1 𝑢𝑁1 2 = 𝐹𝑁−1,1 1 from this. 𝑢𝑁−1,1 2 = 𝐿𝑁−1,1 1 𝑢𝑁1 2 + 𝐾𝑁−1,1 1 ( 12𝑁−1) 𝐿𝑁−1,1 1 = − 𝑐𝑁−1,1 1 𝑎𝑁−1,1 1 𝐿𝑁−2,1 1 +𝑏𝑁−1,1 1 , 𝐾𝑁−1,1 1 = 𝐹𝑁−1,1 1 −𝑎𝑁−1,1 1 𝐾𝑁−2,1 1 𝑎𝑁−1,1 1 𝐿𝑁−2,1 1 +𝑏𝑁−1,1 1 (13𝑁−1) driving coefficient 𝐿𝑖1 1 , 𝐾𝑖1 1 is found in the correct way from the formula (13i) in ascending order. this, when 𝑗 – 1, the process is terminated. them when it is 2, the above process is continued and 𝑈, 𝑆 are found , etc. they are found in the first layer. 2τ≤ 𝑡 ≤ 3𝜏 when, we apply the above (7) driving method to the undisclosed scheme. when 𝑘 = 2 all the above processes are repeated and 𝑢𝑖𝑗 3 is found in the second layer, and so on. it is calculated 𝑢𝑖𝑗 𝑘 .it can be calculated using the differential scheme (71) above 𝑢𝑖𝑗 𝑘 . references 1. м.isroilov, calculation method. 2nd floor. toshkent, “o’zbekiston”, 2008. 2. a.kalandarov, smeshannaya zadacha dlya giperbolicheskix uravneniy s zapazdivayushimsya argumentami. baku. uchyoniye zapiski agu, 1975 y. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 119 www.americanjournal.org energy efficiency in the industrial sector: conceptual foundations and empirical research khamdamova gavkhar absamatovna, doctor of economics, professor, tashkent state university of economics, orcid: 0000-0002-0690-6845 g.khamdamova@tsue.uz a b s t r a c t k e y w o r d s this article discusses the issues of industrial energy efficiency in modern conditions. conceptualization of the concept and empirical analysis are carried out. the necessity of improving energy efficiency in the domestic industrial sector is substantiated, which requires a thorough theoretical analysis of the meaning and interrelation of the relevant concepts, as well as studying the current state and forecasting changes in the field of energy efficiency. efficiency, energy efficiency, industrial energy efficiency, analysis, forecast, sector, economy, technological progress. introduction in today's world, where the competitive environment is becoming increasingly tense, the importance of energy efficiency and energy-saving technologies for various sectors of the economy and industry is growing. one of the key tasks today remains to improve the energy efficiency of industrial enterprises using economical, high-quality and relatively affordable technologies that allow efficient use of energy resources. in modern conditions, increasing the energy efficiency of industrial enterprises is an important factor contributing to productivity growth, the development of the national economy and the strengthening of companies' positions in the international arena. optimization of energy consumption helps to reduce production costs for both individual organizations and their associations, which entails a reduction in production costs and an increase in production volumes without increasing the level of resource use. in addition, improving energy efficiency frees up financial resources previously spent on energy payments and reduces the dependence of enterprises on fluctuations in energy prices. energy efficiency encompasses all aspects of economic activity, including manufacturing and non-manufacturing sectors, and is based on the rational use of various resources to achieve competitive advantages. this approach is considered as a key driver of economic growth, an alternative path based on increased consumption of energy and fuel resources, which is a less sustainable strategy. in this context, energy efficiency can be considered as an important element of energy assets. to increase energy efficiency in the country's industrial sector, a comprehensive theoretical analysis of the meanings and interrelationships of key concepts related to this area is required. it is important to investigate the current state of energy efficiency, as well as to assess future american journal of business management, economics and banking volume 32 january 2025 p a g e | 120 www.americanjournal.org changes and trends. special attention should be paid to identifying the factors influencing the rational use of energy resources, as well as studying modern methods, technologies and tools that can contribute to improving energy efficiency in the current environment. methodology the methodological basis of the research was the works of domestic and foreign experts devoted to the introduction of innovative approaches in the field of energy efficiency and increasing the competitiveness of enterprises. in the course of the analysis, legislative and regulatory acts were used, as well as materials from scientific and practical conferences covering these topics. the research was based on a systematic approach, and methods such as logical, comparative, and statistical analysis were used to achieve its goals. result and discussion increasing energy efficiency in industry plays a key role for the development of the national economy, especially given the significant amount of energy consumption in this sector. this is due to several important factors. first of all, it ensures the reliability and sustainability of the country's energy supply. in addition, increasing energy efficiency contributes to improving the environmental situation. it also accelerates the transition to a development model focused on innovative and high-tech industries, which reduces dependence on raw materials industries and stimulates technological progress. in recent years, this approach has become one of the priorities of modernizing the uzbek economy. to improve energy efficiency in the domestic industrial sector, a deep theoretical analysis of the essence and interrelation of key concepts is required. this includes the identification of factors influencing the rational use of energy resources, as well as the study of methods, technologies and tools that can contribute to increasing energy efficiency in the modern conditions of the country. special attention is paid to the study of the relationship and differences between the terms “energy efficiency” and “energy conservation”. the analysis shows that the concept of energy efficiency is interpreted in different ways. modern theoretical approaches in this field are mainly based on concepts that focus on the rational use of resources, the achievement of results and the principles of sustainable development. this approach makes it possible to assess the balance between economic indicators and the energy resources needed to achieve them, taking into account environmental and social factors. a number of studies emphasize the importance of resource efficiency, defined as “minimizing energy consumption to achieve a given useful result” or “reducing energy consumption while maintaining the volume of services provided”. [9] a number of researchers consider energy efficiency as an indicator of the performance of industrial enterprises in a socio-economic context, defining it as a “qualitative characteristic of the economy” or as a process aimed at optimizing “energy parameters of activities, taking into account environmental safety and expanding the capabilities of production systems”. [2] in economics, efficiency is often determined through the ratio of results achieved and resources expended, which makes the resource-based approach one of the key ones in the study of energy efficiency. at the same time, domestic and foreign scientists approach the issues of energy efficiency and energy conservation from different points of view. however, their importance for solving the main socioeconomic problems remains indisputable. research in this field covers both the macroeconomic level american journal of business management, economics and banking volume 32 january 2025 p a g e | 121 www.americanjournal.org and the level of individual enterprises and technological processes, paying attention to the interaction of various economic entities in solving relevant tasks.[3] the adoption in 2020 of the law of the republic of uzbekistan no. zru-628 “on amendments and additions to the law of the republic of uzbekistan on the rational use of energy” was an important step in creating an institutional framework for improving energy efficiency in the country. state standards in this area have been established, and regional strategies and specialized programs have been developed and implemented to address key energy conservation and efficiency issues in the use of energy resources. [1] according to these documents, energy efficiency is defined as the ratio of the effect of using energy resources to their costs, whereas energy conservation implies the use of various measures to reduce their consumption for the purpose of rational use. experts emphasize that government agencies and policy initiatives play a crucial role in regulating and improving energy efficiency. although national legislation enshrines the basic concepts of energy efficiency and energy conservation, further development of theoretical and methodological foundations in this area is necessary to create effective mechanisms for their implementation in the industrial sector. it is advisable to use a system-synergetic approach to manage and regulate energy efficiency. it is important to consider increasing energy efficiency from different angles: as a factor stimulating economic development, and at the same time as a result of this process. we propose to complement approaches to understanding energy efficiency by presenting it as a complex property of industries. this approach reflects the specifics of industries and their ability to function effectively in a competitive market, as measured by results per unit of output. this perspective is conditioned by the need to take into account the specifics of the economy at the current stage of its development when studying energy efficiency and finding ways to improve it. energy consumption and efficiency depend on a variety of factors that vary depending on the economic system. in addition, the level of energy efficiency in industry is closely related to the state of the fuel and energy complex (fuel and energy complex), its potential and the needs of energy consumers. this highlights the importance of the relationship between energy efficiency, fuel and energy complex and other key industries. empirical studies conducted in ten countries that are the largest consumers of energy demonstrate the existence of a relationship between economic growth and energy consumption. [4] similar results have been obtained in additional studies covering data from multiple countries that confirm the link between economic development and energy consumption. [5] in the context of the domestic economy, the macroeconomic perspective is represented by regional and sectoral systems, while at the micro level the focus is on the activities of individual business entities. in this regard, energy efficiency assessment is carried out taking into account regional and industry specifics, and also requires analysis at the level of specific enterprises and organizations. the management of energy saving processes is distributed among all levels of the economic system, which implies the use of a variety of general and specialized indicators to assess energy efficiency at each of them. one of the key indicators of energy efficiency is the energy intensity of gdp. uzbekistan's economy is currently characterized by high energy dependence, which is associated with the peculiarities of industrial production and the use of outdated technologies in energy-intensive industries, including american journal of business management, economics and banking volume 32 january 2025 p a g e | 122 www.americanjournal.org equipment that has long needed modernization. researchers, both domestic and foreign, unanimously note that increasing energy efficiency plays a significant role in stimulating economic growth. in the countries of the european union, energy efficiency is seen as a tool for achieving various goals, including meeting national and international economic and political objectives. these goals include reducing carbon dioxide emissions, ensuring reliable energy supply, and reducing costs. [9] experts note that improving energy efficiency is one of the main ways to reduce fuel costs, and investments in energy-saving technologies quickly pay off due to reduced operating costs. [11] the economic state and features of the chosen economic model of the country have a significant impact on the level of energy efficiency. factors such as the structure of industries, high depreciation of fixed assets, low level of innovation activity of industrial enterprises, as well as the predominance of sectors with low technological equipment, negatively affect the energy efficiency of industry. as noted by i.a. bashmakov, increasing energy efficiency and reducing energy consumption are important results of economic modernization.[6] l.y. bogachkova emphasizes that the growth of energy efficiency is becoming a key element of the global competitiveness of the national economy. [7] a systematic approach to the study and improvement of industrial energy efficiency covers several areas: -reduction of energy consumption and rational use of basic energy resources, which includes energy conservation measures; -changing the structure of energy production and consumption by increasing the share of renewable energy, which has a positive impact on both the economy and the environment; -increasing the efficiency of energy processes, resulting in a higher level of return on resources used.[8] in our opinion, the development of effective solutions for each of these areas requires a transition to a new technological level, which is becoming accessible thanks to the achievements of the third and fourth industrial revolutions. this process involves a large-scale modernization of production processes and economic structure in accordance with the principles of neoindustrialization. foreign experts are actively studying the impact of new industrialization on economic development, which is explained both by the importance of a theoretical understanding of modern models of economic growth in the context of industrial innovation, and the high practical value of such research. [8]. jeremy rifkin highlights a key feature of the third industrial revolution — the integration of the latest communication technologies, such as the internet, with modern energy systems, including the use of renewable energy sources. klaus schwab emphasizes that the idea of “smart factories” is becoming more relevant in our time and will play a key role in the future. this phenomenon is the result of the fourth industrial revolution, which is leading to the creation of a global environment where digital and real production systems interact effectively on the international stage. one of the promising directions in this context is a significant reduction in energy consumption due to the transfer of part of the production processes from the physical environment to the digital one. however, increasing energy efficiency alone is not enough to ensure the competitiveness of the national industry. achieving significant success requires the innovative development of both traditional and new industries, which will become the basis for a large-scale technological breakthrough. the main idea is to move to a new technological paradigm that involves a profound transformation of the industrial sector of the economy, including its structure and principles of functioning. conclusion american journal of business management, economics and banking volume 32 january 2025 p a g e | 123 www.americanjournal.org the need to study improving the energy efficiency of domestic industry in the context of neoindustrialization is due to the fact that at the micro level it covers the efficiency of equipment and technologies used, as well as the organization of production processes at the enterprise level as an integrated system. at the national economic level, energy efficiency indicators are formed on the basis of aggregate data on energy efficiency by individual enterprises. the introduction of innovative technologies into the production processes of factories can significantly reduce energy consumption. in the process of updating the management system, the focus is on creating innovative industrial clusters that ensure the dissemination of successful energy management practices among participants, using the experience of leading enterprises. this contributes to a more efficient use of energy through the integration of production processes and the introduction of advanced technologies. key areas include the introduction of innovative approaches such as a closed production cycle, the creation of environmentally oriented industrial parks and cooperation models based on the principles of resource conservation. the implementation of such initiatives has become possible due to significant progress in digital technologies, which is stimulated by the processes of neoindustrialization. the analysis allows us to conclude that improving the energy efficiency of the industrial sector in the context of neo-industrialization is possible through an integrated approach to solving a number of interrelated tasks at various levels of its functioning. these tasks include: -changing the industry structure with an emphasis on the development of industries characterized by high energy efficiency; -modernization of industry through the introduction of advanced technological developments; -creation and development of new industries focused on energy reduction technologies; -active use of renewable energy sources; [8] implementation of the industry 4.0 concept through the introduction of innovative solutions such as cyber-physical systems and smart enterprise technologies. in our opinion, the improvement of energy efficiency both at the level of individual enterprises and throughout the country's industry is directly related to the active introduction of innovations and the creation of high-tech production processes. this approach requires the implementation of comprehensive measures affecting various sectors of the economy, as well as coordinated efforts by the government and the management of enterprises to achieve significant results in improving the energy efficiency of the industrial sector. references 1. the law of the republic of uzbekistan “on amendments and additions to the law of the republic of uzbekistan “on rational use of energy” dated 07/14/2020, no. zru-628. 2.страхова н.а., горлова н.ю. концепция энергоресурсо-сберегающей деятельности в промышленности. url: http://flatik.ru/koncepciyaenergoresurso sberegayushej-deyatelenosti-vpromishl 3.журавлев в.м., кулагина т.а., писарева е.н., чернявская е.н., клименков с.и. взаимоотношения в области энергосбережения между научными, производственными, общественными организациями, властью и бизнесом // сервис в россии и за рубежом. 2011. №5. с.108-113. http://flatik.ru/koncepciyaenergoresurso american journal of business management, economics and banking volume 32 january 2025 p a g e | 124 www.americanjournal.org 4.shahbaz m., zakaria m., shahzad s. j. h., mahalik m.k. the energy consumption and economic growth nexus in top ten energy-consuming countries: fresh evidence from using the quantile-onquantile approach// energy economics. 2018. 71.p. 282–301. 5. faisal, tursoy, t., resatoglu, n.g., 2016. energy consumption, electricity, and gdp causality: the case of russia, 1990–2011. procedia econ. finance 39, p. 653–659. zhang y.-j. interpreting the dynamic nexus between energy consumption and economic growth: empirical evidence from russia// energy policy. 2011. 39. p. 2265–2272. 6. башмаков и.а. сколько, кто и где тратит на повышение энергоэффективности? анализ зарубежного опыта и рекомендации для россии //академия энергетики. №1 [57] февраль 2014. url: http://www.cenef. ru/file/bashmakov%2007.pdf 7.богачкова л.ю. повышение энергетической эффективности как драйвер глобальной конкурентоспособности национальной экономики// экономика и управление: теория и практика. 2018. т. 4. № 1. с. 22-31. 8.подгайнов, денис викторович механизмы повышения энергоэффективности компаний в рамках реализации промышленной политики: диссертация ... кандидата экономических наук: 08.00.05 ростов-на-дону 2019. http://dlib.rsl.ru/rsl01010000000/rsl01010176000/rsl01010176355/rs l01010176355.pdf 9.показатели энергоэффективности: основы статистики. oecd/iea, international energy agency. 2014. с 18. 10.справочный документ по наилучшим доступным технологиям обеспечения энергоэффективности. european commission, 2009. 489 c. 11.energy efficiency – the fast track to a sustainable energy future. abb. 2015. url: http://new.abb.com/docs/default-source/better-world/abb-energy-efficien cypaper.pdf. 12. хамдамова г.а. классификация политики в области энергетики и энергоэффективности и ее реализация. молия. научный журнал. тфи. ташкент. 2023. № 5. 13.gavhar khamdamova. industry and its role in the socio-economic development of society. scientific journal of “international finance & accounting” issue 2, april 2023. issn: 2181-1016. 14.хамдамова г.а. новый этап развития национальной промышленности и её роль в современной экономике страны. журнал. молия. 2023. – №1. – с.86-94. http://www.cenef/ http://dlib.rsl.ru/rsl01010000000/rsl01010176000/ http://new.abb.com/docs/default-source/better-world/abb-energy-efficien american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 223 www.americanjournal.org development and forms of international currency relations in commercial banks of the republic of uzbekistan tokhtayeva umida shamsiddin kizi tashkent state university of economics faculty of master's and evening education kbia-72 group student a b s t r a c t k e y w o r d s this article discusses the economic nature of the global financial market, its social features and its theoretical and methodological aspects, its main and additional functions and principles, the implementation of market instruments, and is scientifically based from the perspective of participating institutions. to perform the functions of its peculiarities. global financial market, international financial market, capital accumulation, redistribution, debt capital, debt instruments, derivative contracts, euro market, methodological approach, interests of economic agents. introduction mutual representative relations of commercial banks are divided into internal and external relations according to the geographical direction. domestic relations mean established mutual representative relations between commercial banks within the same country. the main part of international settlements is carried out through foreign representative relations. this includes fees "nostro" and "vostro" are made through representative accounts. research materials and methodology the fact that commercial banks of the republic of uzbekistan have unilateral foreign representative relations with commercial banks of developed foreign countries has a negative effect on expanding the scope of international operations. the essence of the matter is that large commercial banks of our republic have their "nostro" representative accounts in commercial banks of developed foreign countries. commercial banks of developed foreign countries do not have their "vostro" representative accounts in commercial banks of our republic. it should also be noted that, taking into account the implementation of measures for the liberalization of the foreign exchange market of uzbekistan, which will help to expand the scope of foreign exchange operations in accordance with world practice, the authorized banks should inform the interested bodies of the methods of operation of the international currency market. it is necessary to carefully study and create conditions for the use of currency risk regulation instruments in order to american journal of business management, economics and banking volume 23 april 2024 p a g e | 224 www.americanjournal.org avoid negative effects on the country's economy. divided into relationships. customer transactions include trust service transactions, customer commercial transactions, payment orders for their obligations, checks, documented letters of credit and collection transactions, securities transactions, guarantees to them. giving and other operations. research results banks' own operations include granting and receiving loans in foreign currency, accepting deposits, buying and selling currencies, securities. none of the commercial banks of the republic of uzbekistan have been listed on the international securities market. this prevents them from developing operations related to securities denominated in foreign currency. in most cases, mutual representative relations are implemented by opening bilateral or unilateral accounts. at the same time, it is possible to establish mutual representative relations without opening accounts. in this case, international settlements are made through an account opened in a third bank. the second main factor that determines the position of international settlement relations of commercial banks in the iim system is their connection to the international electronic payment system. after the independence of the republic of uzbekistan, as a result of reforms carried out in the banking sector, a national electronic payment system was introduced in a short period of time. as a result, the time for making payments between business entities in commercial banks of the republic of uzbekistan has been sharply reduced. this information is presented in the diagram below. in addition, the currencies in which reserves can be formed (us dollar, pound sterling, french franc, german mark, japanese yen, etc.) have decreased on the one hand (as a result of the adoption of the euro as a single currency throughout europe, the german mark, swiss franc , french franc, pound sterling (partially due to the withdrawal of reserve currencies), on the one hand, during the global financial crisis, as a result of the sharp rise in oil prices and the entry of the currencies of major oilexporting countries into the world market, world currencies increased . according to another principle adopted at the conference, a regime of free exchange rates should apply throughout the world. however, this regime is in force in only 23 countries of the world, and in more than 100 countries, either a fixed currency system or a controlled exchange rate regime is ensured. all these circumstances require reform of the international monetary fund. because currently the international monetary fund does not have the ability to fully and consistently control financial and currency relations. for example, it is very difficult to control the forex system, a new form of the international currency market system. it can be said that this market cannot be regulated. in addition to the fact that this market is not located at a specific address, it operates throughout the day, which limits the possibility of controlling the operations taking place in it. discussion in our opinion, the methodological approach to the concept of the world financial market should be based on the understanding of its multidimensionality, due to the impossibility of explaining this concept from one side. even the most basic concept can reject several factors the economic nature american journal of business management, economics and banking volume 23 april 2024 p a g e | 225 www.americanjournal.org of the relations that arise in the market, the financial assets that circulate in it, the entities that carry out transactions in the market, as well as their importance in the world economy. therefore, the analyzed approaches of different authors to the concept of the world financial market can be used as a complement. the analysis of the geographical structure of the development of the world financial market shows the superiority of developed countries. north american countries (usa and canada), european union countries and japan occupy a third of the total world market. conclusion according to the study of current trends in the world, there are profound changes in the management finance in the near and far sector-oriented market. contrary to the revival of business activity in 2009-2010, it has not completely eliminated the current world experience. in the next few years, the global financial market will have a unique impact on the two main factors the direct impact of global energy production, support for our opinion and financial support, and the stabilization of energy production. there is a possibility of changes in financial, financial sector activity, potential of financial institutions, financial financial methods, risk management policy, opportunities in states (countries) and world financial markets. references 1. shernayev a.a, qalandarov z.i. strategik rivojlanish sharoitida mahalliy byudjetlar daromadlarini takomillashtirish yo‘nalishlari. // «студенческий вестник»: научный журнал. – № 20(165). часть 14. москва, изд. «интернаука», 2021. – с. 74-76 2. shernayev a.a, qalandarov z.i. sog‘liqni saqlash tizimini moliyalashtirishda mahalliy byudjetlarning rolini oshirish masalalari // «интернаука»: научный журнал № 20(196). часть 7. москва, изд. «интернаука», 2021. с. 58-60 3. shernaev a.a. principles and methods of organization of the internal tax control system in joint stock company // international journal of economics, business and management studies issn:2347-4378 sjif impact factor(2021) :7.473, journal doi: 10.36713/epra1013 (volume: 8, issue: 4, april 2021), pages: 43-53. 4. shernaev a.a. aksiyadorlik jamiyatlarida soliqlarni rejalashtirish: xususiyatlari va uslubiyoti masalalari // "science and education" scientific journal. march 2021 / volume 2 issue 3, 454469-p. 5. shernaev a.a. tax analysis in microlevel tax planning // electronic journal of actual problems of modern science, education and training. february, 2021 -iv. issn 2181-9750, 7582-p. 6. shernaev a.a. on the issue of the efficiency of taxation of joint stock companies // «экономика и бизнес: теория и практика». международны ежемесячный научный журнал №9-2 (67). москва, изд. ооо «капитал», 2020. – с. 149152. 7. tohir malikov, khotamjon kobulov. models of market economy formation and interaction of fiscal policy // international journal of economic growth and environmental issues issn: 2321-6247 sjif impact factor ((2021): 8.047, journal doi: 10.36713 / epra0713 (volume: 9, american journal of business management, economics and banking volume 23 april 2024 p a g e | 226 www.americanjournal.org issue: 2) , february 2021) 8. кобулов х.а. вопросы финансовой безопасности в условиях модернизации республики узбекистан // «интернаука»: научный журнал № 3(132). часть 2. москва, изд. «интернаука», 2020. с. 14-16 9. khotamjon kobulov, sherzod jalilov, sherali sultanov, nodira soatova. modeling the processes of forming a strategy for the revenue potential of local budgets // journal of advanced research in dynamic and control systems. volume 12, issue 6. 2020. doi: 10.5373 / jardcs / v12i6 / s20201161. pages: 1210-1216 10. shernaev a.a. o‘zbekiston respublikasida kompaniyalar tashqi iqtisodiy faoliyatini amalga oshirishda soliqlarni rejalashtirish // “xalqaro moliya va hisob” ilmiy elektron jurnali. №2, aprel, 2020 yil. 11. shernaev a.a. general methodological bases of tax planning in enterprises // international journal of economics, commerce and management united kingdom issn 2348 0386 vol. viii, issue 4, april 2020 licensed under creative common page 357 12. shernayev a.a. budjetdan tashqari jamg‘armalar moliyaviy resurslarini shakllantirish va taqsimlash amaliyotini takomillashtirish yo‘nalishlari // «студенческий вестник»: научный журнал. – № 1(99). часть 6. москва, изд. «интернаука», 2020. – с. 87-89 13. шернаев а.а. налоговое планирование в системе обеспечения финансовой безопасности в акционерных обществах // «интернаука»: научный журнал № (141). часть 2. москва, изд. «интернаука», 2020. с. 43-45 14. abdullaeva sh.z. xalqaro valyuta kredit munosabatlari. darslik. toshkent “iqtisodmoliya”, 2005 yil, 588 bet. 15. jumaev n., burxonov u. «moliyaning dolzarb muammolari», toshkent «yangi asr avlodi» nashriyoti, 2003 y. 16. хошимов ж. р., очилов б. б., наримонов с. с. инвестиционная политика: теория и практика. – 2024. 17. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 1 www.americanjournal.org analysis of marketing strategies for the automotive industry ismatullaev temur ravshan og‘li head of dnd and marketing department of uzauto motors jsc a b s t r a c t k e y w o r d s the automotive industry is one of the most important sectors of the global economy today. millions of cars are produced and sold every year, which increases competition in this industry. developing effective marketing strategies is the key to success for companies. this article analyzes marketing strategies in the automotive industry, provides information on their importance, main directions and modern trends. automotive industry, modern trends, marketing, companies, consumers, brand, social networks. introduction before developing a marketing strategy in the automotive industry, it is necessary to analyze the market. market analysis involves gathering information about consumers, competitors, and market demands. each car manufacturing company must study competitors and the general state of the market before offering its products to consumers. this process helps the company to identify its strengths and weaknesses. through market analysis, it is possible to obtain information about the needs and desires of consumers, which makes it possible to make marketing strategies more effective. when developing a marketing strategy, it is very important to determine the target audience. each car model is designed for a specific consumer segment. for example, sports cars attract consumers who are young and full of energy, and family cars attract people with families. setting the target audience allows you to effectively target marketing campaigns. companies must take into account demographic, psychographic and geographical factors in determining the target audience. this process helps the company determine which segments to target their products. materials and methods brand development is an integral part of a successful marketing strategy in the automotive industry. good brand, increases confidence and loyalty among consumers. car manufacturers should pay attention to such factors as quality, innovation and design when creating their brands. the strong image of the brand has a huge impact on consumer buying decisions. in the process of brand development, it is necessary for companies to promote their brands through social networks, advertising and pr. to strengthen the brand, it is necessary to build relationships with consumers and increase confidence in the brand. in the modern era, digital marketing has gained an important place in the automotive industry. implementing marketing strategies through the internet and social media allows companies american journal of business management, economics and banking volume 34 march 2025 p a g e | 2 www.americanjournal.org to reach a wide audience. includes techniques such as digital marketing, seo, content marketing, social network advertising, and email marketing. through these strategies, companies can effectively promote their products. one of the benefits of digital marketing is the ability to track consumer behavior. this will help the company further improve its marketing strategies. innovation in the automotive industry is constantly developing. new technologies, environmentally friendly cars and smart transport systems play an important role in attracting the attention of consumers. companies need to constantly update their products and introduce new technologies. innovative products, increase consumer interest and give preference in competition. product innovation allows the company to access new market segments and plays an important role in meeting consumer needs.[1] results and discussions price policy is one of the important aspects of marketing strategy in the automotive industry. the price directly affects consumer buying decisions. companies must set competitive prices for their products. price policy plays an important role in strengthening the company's market position. it is also possible to attract consumers through various discounts, promotions and financial programs. when developing a pricing policy, companies need to take into account their own costs, competitors ' prices and consumer needs. customer engagement is a key part of a successful marketing strategy in the automotive industry. listening to customer feedback, understanding their needs and providing them with quality service, increases brand loyalty. companies may employ a variety of techniques to strengthen their customer relationships. for example, it is possible to strengthen communication through activities in customer service centers, online chats and social networks. strengthening customer engagement allows the company to maintain consumers and increase their loyalty.[2] advertising and promotion are an integral part of the marketing strategy in the automotive industry. companies must use a variety of advertising channels to promote their products. advertising through television, radio, the internet and social media allows you to reach a wide audience. consumer compatibility of advertising messages and content increases their interest. when developing an advertising strategy, it is necessary for companies to take into account their target audience. advertising campaigns play an important role in brand development and consumer engagement. aftersales services play an important role in increasing customer loyalty in the automotive industry. customers expect quality service after purchasing their cars.[3] brand development is an integral part of modern business, and this process is important for any company. the brand is associated not only with the set of products or services, but also with the interaction with customers, the image of the brand and its impact on the market. for the successful development of the brand, it is necessary to implement various strategies, and this process involves many stages. one of the first steps in brand development is identifying brand identity. this process determines the brand identity. all aspects, from the brand's logo to the color palette, fonts and other visual elements, increase the brand's recognition ability. maintaining the same visual style when presenting a product or service to customers will help maintain the appearance of the brand at the same level.[4] this, in turn, makes it easier for customers to recognize a brand and strengthens its position in market competition. another aspect that is important in the development of the brand is the provision of quality products and services. customers are always looking for quality, and if the brand offers quality products, it will increase customer confidence. it is necessary to constantly improve the quality of the american journal of business management, economics and banking volume 34 march 2025 p a g e | 3 www.americanjournal.org product or service, to introduce innovations that suit the needs of customers and to show themselves better in comparison with competitors. quality products not only attract customers, but also cause their return. customer engagement plays an important role in brand development. listening to customer feedback, meeting their needs, and providing quality service increase brand loyalty. by taking into account customer feedback, the chances of improving and developing the brand increase. establishing constant communication with customers, accepting their opinions and building friendly relations with them ensures the success of the brand.[5] being active on social media is one of the modern ways to promote a brand. through social networks, it is possible to share information about the brand, communicate with customers and introduce the brand. creating interesting and creative content on social networks will help increase the popularity of the brand. getting in touch with customers through social networks, introducing them to the brand's news and offers, as well as getting their opinions, will increase interest in the brand. the development of advertising and promotion campaigns is important in the development of the brand. interesting and creative advertising shows the advantages of the brand and attracts customers. through advertising, it is necessary to emphasize the uniqueness of the brand and its proposals. identifying the target audience of a brand through advocacy campaigns and advertising them accordingly will enhance the brand's impact on the market. it is important in brand development to constantly update advertising strategies, try new methods and create suggestions to suit customer needs. creating a brand story is also an important aspect. the history, purpose and values of the brand must be presented to customers. when customers know the story behind the brand, they strengthen their emotional attachment to the brand. this increases brand loyalty. through the brand story, it is possible to strengthen interaction with customers, increase their interest in the brand and create a positive image of the brand.[6] conclusion the automotive industry includes factors such as developing successful marketing strategies, in-depth market analysis, target audience labeling, brand development, and digital marketing. innovation, pricing policy, customer engagement, advertising and after-sales services, are important aspects of marketing strategies. it is also necessary for companies to take into account social responsibility. with these factors in mind, it is possible to develop and implement successful marketing strategies in the automotive industry. references 1. kotler, p., & keller, k. l. (2021). "marketing management." 16th edition. pearson education. 2. armstrong, g., & kotler, p. (2020). "marketing: an introduction." 13th edition. pearson. 3. mckinsey & company. (2022). "the future of the automotive industry: trends and strategies." mckinsey & company insights. 4. bain & company. (2023). "automotive marketing strategies in a digital age." bain & company research. 5. choudhury, s., & kaur, s. (2021). "digital marketing strategies for the automotive industry." journal of business research, 124, 456-467. 6. wirtz, j., & lovelock, c. (2020). "services marketing: people, technology, strategy." 8th edition. world scientific publishing. 7. b2b international. (2022). "automotive market research: strategies for success." b2b international report. american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 21 www.americanjournal.org views of the manifestations of the enlightenment and the jadidism movement on the path to human spiritual perfection salamov khurshid bariddinovich renaissance university of education "socio-political science” department researcher a b s t r a c t k e y w o r d s this article describes the socio-political foundations and historical conditions of the emergence of the enlightenment and jadidism movements, the views of the representatives of the enlightenment and jadidism movements on the path of spiritual perfection of man. the spiritual heritage of thousands of brave warriors who died innocently in the difficult times that befell our people, the realization of national identity, independence of our country, the foundations of todayʻs peaceful and peaceful life are studied. renaissance, enlightenment, spirituality, knowledge, science, enlightenment, school, education, past, generation, literature, injustice, religion, corruption. introduction the enlightenment and jadidism movements were an important part of the social and spiritual changes in society that were characteristic of the late 19th century and the first half of the 20th century. these movements aimed primarily at the spiritual and moral development of the individual, combining the spiritual values of islam, national traditions and the demands of the times. the enlighteners sought to promote education and education in society, to increase the spiritual level of man, and to ensure social justice in society. they considered it important that moral and spiritual values are decided in society. at the same time, the jadidist movement tried to develop education and enlightenment in accordance with the requirements of the times, with new methods and ideas. in their work, the jadidists tried to improve social life, reform education and achieve spiritual perfection. they sought to introduce new methods and concepts for spiritual development in society. for this reason, the enlightenment and the jadidist movements played an important role in the development of one's views on the path to spiritual perfection. these movements have influenced social, spiritual and moral changes in society, and their ideas are still relevant in modern society. also, the enlightenment and jadidism movements played an important role in spiritual and social development in central asia. through their spiritual and ideological views, these movements tried to solve problems in society, ensure human spiritual maturation, and bring about new changes. their thoughts and actions had a great influence on the spiritual rise and social progress of society. the enlightenment paid great attention to the importance of education. they tried to ensure the spiritual and moral maturity of young people through education. as a result of this, they aimed to make american journal of business management, economics and banking volume 31 december 2024 p a g e | 22 www.americanjournal.org young people educated and spiritually developed in society. they promoted scientific knowledge and science. they recognized the impact of science on the development of society and attempted to advance science. this, in turn, served to increase the overall spiritual level of society. the enlightenment emphasized the importance of spiritual values and moral standards in society. the jadidism movement has attempted many reforms and changes in society. they tried to overcome old traditions and obstacles in society, to introduce new knowledge and skills. the jadidism movement placed great emphasis on ensuring human rights and freedoms. they aim to protect fundamental human rights and freedoms, and to promote equality and justice in society. they sought to improve the effectiveness of education, introduce new pedagogical methods and methods, and promote the spiritual and moral development of young people. they pioneered new methods and approaches to advance education and increase the spiritual level in society. the enlightenment and jadidist movements also saw education and enlightenment as a major factor in the development of society. they aim to promote the spiritual and moral development of youth through education. they considered the moral and spiritual development of humans essential to the overall development of society. both movements placed great emphasis on social reform and change. they tried to overcome old traditions and obstacles in society, to introduce new science and skills. as we know, in the formation of a national identity-the past, today and the future have been the focus of intellectual, selfless, people of science in all times. even today, great importance is paid at the state level to the issue of thoughtful understanding of this fact, the effective use of a rich national experience at the stage of new development. the first renaissance manifestations on the territory of uzbekistan begin with the name: muhammad khwarazmiy, abu nasr farabi, abu ali ibn sino, abu rayhan beruniy. the views of our ancestors, the name of which is mentioned above, on the path of human spiritual perfection correspond to the first renaissance in the east. and the emergence and development of the second renaissance is associated with the timurid dynasty.the activities and scientific views of mirzo ulugbek, alisher navoi, zahiriddin muhammad babur, who lived and worked during this period, are admirable. as our countryman noted, the third renaissance in our country could be carried out in the twentieth century by our enlightened jadid grandfathers. why, these selfless and ardent breeds have all their lives devoted to the idea of national awakening, mobilizing all their might and opportunity to bring the country out of ignorance and backward, to save our nation from the swamp of grief, and also sacrificed their dear souls along the way. they knew at the level of belief that the hadith” there is no salvation in the world other than science, and there is no " is a vital necessity. enlightenment and jadidism (arab. nov. the end of the 19th century in the first quarter of the 20th century, as a follower of mahmudhaja behbudy, munavvar qori abdurashidkhanov,one of the exponents of the socio-educational movement formed in the regions of central asia, crimea, the caucasus, the volga region, which destroyed the advanced methods and paths of a new modern school, printing and development), abdullah avloni (1878-1934) was one of the active participants of the jadids in tashkent. in a new way, he opened a new school, taught, and wrote textbooks. the school opened a “community charity” to help the māori ishari, educating orphans and children without a breadwinner. abdullah avlani, together with prominent enlighteners, formed the companies “publishing” (1914), “school” (1916). he was directly involved in the arrival of the newspapers” khurshid“,” tujjor“,” asia " on the field. under american journal of business management, economics and banking volume 31 december 2024 p a g e | 23 www.americanjournal.org his editorship, he published “fame” (1907), and later “turon” (1917). the school founded by abdullah avloni became a true folk school, providing young people with the ability to intervene in the sociopolitical life of the country. in his 1913 work “turkic gulistan or ethics”, of moral-didactic content, he was one of the first to give the correct definition of “pedagogy”, the science of child-rearing. the scientist believes that through upbringing”the body is strengthened, thought is irradiated, morality is beautified, the mind is enlightened." abdullah avlani points out that the child should be given physical education, thought education, moral education and be educated and educated in good manners. a child who will not give birth, let the trouble be to you, when the body is nurtured, the bo'lur ul rahnamo will give you a high assessment of the place of upbringing in a person's life. knowledge is a supreme and sacred virtue for man. "zerokhi science shows us our condition, our action, like a game. it makes our mind, our mind sharp as a sword. the reward will be taken away from sin, the honesty from the unclean, and the dust from the apostate. he gives thanks to the right path and causes us to be responsible in the world and in the hereafter. without knowledge, a person is like a tree without fruit ... the benefit of knowledge is that it is impossible to fulfill one that has been described. he saves us from the swamp of ignorance and makes us good and good-natured. abdullah avloni's views on science and ethics require very deep analysis and interpretation. his idea that” discipline is for us either life or life or salvation or destruction or happiness or disaster " never loses its importance. abdullah avlani also pays great attention to family upbringing. "god has created men to distinguish talent and ability in the original form, evil with good, harm with benefit, and black with white, but the perfection of this ability in man is divided by upbringing. "what he sees in the bird's nest" [2]. abdullah avlani, with his high intelligence and thinking, scientific heritage, spiritual and educational, moral and educational views, is highly revered as an enlightened alloma that has served invaluable for the happiness of our people, the national independence of our motherland. behbudi (1875-1919) was an enlightener, a monk of the turkestan jadidism movement. the first playwright, theater maker, publisher, journalist to pioneer uzbek drama. behbudi, like his contemporaries, was well aware of the socio-political consequences of the backwardness and stagnation that existed in turkestan. in his view, the people of our country could not be free and hurtful, and remained obedient slaves of chorism, while remaining backward in relation to spirituality and enlightenment. the philosophical and educational idea that every people and nation in the world will progress thanks to science occupies a leading place in the teachings of behbudi. behbudi deeply perceived that the development and future of turkestan are its new national cadres, specialists, economists, lawyers, and firmly believed in it. in each of his articles published on the pages of “samarkand” and “a mirror”, behbudi wrote with a coat of arms that the rich of dust were helping themselves by setting up a school for young people. behbudi believed that turkestan youth, who had an incentive to study and learn from the people, but could not afford their father, should be sent to foreign dorilfununs and educated, to have muhaddis and teachers necessary for the development and prospects of the nation, to trade in the ovropa markets, to have foreign-speaking cadres. alloma's above views still hold their significance today. behbudi had argued that we should make weddings and condolences small and pass according to our condition, with the need to focus on the study of the basics of science. the thinker adib expressed his opinion on this as follows: “if we spend our justifications spent on weddings and condolences on the american journal of business management, economics and banking volume 31 december 2024 p a g e | 24 www.americanjournal.org path of us, turonians, science and religion, we will grow as progressive as europeans, and we will earn prestige and development in our religion. no, if we continue to the present, we will have no share in religion and the world except humiliation and humiliation”[3]. how important it is to make the people's masses learned is shown in every way in budi's drama “padarkush”, written in 1911. behbudi's” padarkush " (staged 1913) is an early example of uzbek drama. this drama with 3 curtains, 4 views, which the author called “national tragedy”, was compact in size, incredibly soda in content. the work tells the story of an uneducated child who goes into corrupt ways and kills his own father, giving him a pand of ignorance and ignorance. "padarkush" was first staged in samarkand on 15 january 1914. avloni's” turon " is performed by the theatre troupe in tashkent on february 27, 1914. the role of boy is played by abdullah avloni. the performance had a strong impact on the nationalistic audience, who, surrounded by their own household, forgot about the world. in the work, the tsar describes with anger and hatred that due to colonial policies, harmful habits began to spread among the local population and, especially, among young people, such as drunkenness, domestic perversion, gambling, theft, bribery, extortion, bullying, as a result of which from the slaughter of kindness between people to brother, father and child began to become enemies of each other, in his 1914 paper “not two, but four languages must”, behbudi addresses history to promote the study of turkic, persian, arabic, and russian languages of the turkestan peoples. muhammad s.a.the prophet v also mentioned that they were commanded to learn the jewish language, which was an ideological enemy. it proves with clear examples that knowledge of the language, especially the study of foreign languages,is of incomparable importance for the spiritual perfection of the individual, the cultural development of the nation, the development of science. his particular attribution is that “the one who knows persia will enjoy firdavsi, bedil, saadi,” masnavi”, while those who know turkey will enjoy the contemporary work of fuzuli, navoi, the immortals again tolstoy, jul vern and ulamoi from the turkish translation " [4]. behbudiy fatherland gives an exciting speech at the turkestan muslim country congress held in tashkent on april 16-23, 1917, when the taddiri of independence is being resolved. calls on the nation to renounce their differences , to unite in the path of a great goal, to the union. when the “autonomy of turkestan”, which behbudi the great umud associated, was destroyed, it became clear that the path of the salars, which denied the nation, national progress, was based on deception and violence. behbudi was captured at shahrisabz in the spring of 1919, and two months later, on the orders of the now unclear counter-begi togaybek, was killed in the “tsarist quarter” near the dungeon. it is revealed in research that the government of the shawnee killed the nation's sacrificial child by the hands of the emir[5]. what behbudi did for the development of science, culture, spirituality and enlightenment,how he acted, how many works, treatises, treatises, pe'sa, wrote articles, opened schools, finished textbooks, did it all to be the future of the people, national independence, liberate and prosperous their homeland. the independence of our motherland, the foundation of today's peaceful, peaceful life, was laid by thousands of zabardast, unforgettable children, who suffered repression on hard days that fell on the heads of our people and became sinless victims. that is why the names of moderate people, deliberately erased from the memory of our people in times of unrest, are being restored one after another. the spiritual legacies of many siymos who went martyred on the way to the liberation of our homeland, our nation, such as abdullah kadiri and abdulhamid chulpan, abdurauf fitrat and usman nazareth, are returning to our people today. american journal of business management, economics and banking volume 31 december 2024 p a g e | 25 www.americanjournal.org the enlighteners and jadidists paid great attention to spiritual lighting and ideological development in society. they tried to expand the spiritual understanding of people, to develop them morally and intellectually. as a result, it helped to strengthen spiritual and moral standards in society. the jadidism movement and the enlightenment's efforts to promote social stability and progress in society through reform and change accelerated the overall development of society. reforms and new pedagogical methods have helped to form people who have developed actively and spiritually in society. the enlighteners and jadidists established new intellectual and social platforms in society by introducing cultural developments and new cultural points. they played an important role in promoting cultural progress and introducing new spiritual values into society. educational methods and technologies advanced by the enlightenment and jadidists are still used in modern times. specialized and innovative approaches in modern education show the continuity of their work in education. the importance of spiritual values and approaches to social activities of the enlighteners and jadidists are also important in modern society. they are one of the main points in stimulating the spiritual and social activities of young people. the enlightenment and the jadidist movement were trying to reform traditional educational models in society through the new educational systems they created. they encouraged the reform of schools and madrasas and the teaching of new subjects, including modern subjects such as natural sciences, mathematics, astronomy and history. the jadids attached great importance to language and literature. they paid great attention to the development of the uzbek language and its inclusion in the educational process. this is reflected through their literary works and scientific work. the enlightenment and jadids focused on the personal development of the students. they also considered social and moral education as a subject in the educational process. through the introduction of new methods of upbringing, including practical and interactive lessons, their goal has been to ensure the mature development of young people as individuals and active participation in society. the jadids saw the spiritual awakening of the nation as one of their main goals. they considered education and culture important to the advancement of the nation. as a result of this, significant changes took place in the process of nationalism and self-realization in society. references 1.abdullah avloni. turkish gulistan or morality. t.,” the teacher", 1967, p.34. 2.abdullah avloni. turkish gulistan or morality. t.,” the teacher", 1967, p.24. 3.mahmudhaja behbudi. selected works. b. the author of the preposition, preface and annotations to the publication.kasimov. t., "spirituality", 1997, p.148. 4.mahmudhaja behbudi. selected works. b. the author of the preposition, preface and annotations to the publication.kasimov. t., "spirituality", 1997, p.161. 5.spirituality is a dictionary of basic concepts. ”national society of philosophers of uzbekistan". t., 2021. p. 81. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 26 www.americanjournal.org prospects of using innovative and cluster methods in ensuring food safety based on the processing industry in uzbekistan kobilova nasiba khurramovna independent researcher of tashkent state university of economics e-mail: qobilovanasiba@gmail.com a b s t r a c t k e y w o r d s this article examines the state of ensuring food safety based on the processing industry in our country. in particular, the classification of the participants of the innovation cluster of the food industry and their mutual relations, the classification of the general necessary relations between the innovation clusters of the food industry and the main factors was analyzed. the experiences of foreign countries in the development of food safety industry policy were studied, and the model of ensuring food safety based on the innovative development of food industry clusters and directions for further development of the network were proposed. food industry, food safety, processing industry, food products, food raw materials. introduction as mentioned in the previous chapters, the sustainable development of the food system in any country has a great impact not only on ensuring food security (economically), but also on its socio-economic and ecological development. from this point of view, as well as the constant provision of high-quality (ecologically clean) products to the population's demand for food products, the food production (processing) industry is a strategic issue for countries. in our opinion, food safety can be divided into two interrelated directions: 1. economic security constant supply of the population's demand for food products at a low cost and in the required amount; 2. safety of human health ensuring that the produced food products meet ecologically clean and veterinary-sanitary requirements. of course, the food safety food system, which combines these two directions, covers all the processes of "food raw materials processing cooking (preparation) consumption". in this regard, regulatory and legal frameworks have been developed in our country, based on established procedures, food safety and food processing quality control activities are organized and regulated. american journal of business management, economics and banking volume 24 may 2024 p a g e | 27 www.americanjournal.org in particular, the law no. 483-i of the republic of uzbekistan dated august 30, 1997 "on the quality and safety of food products" was adopted. the law recognizes that "food product safety is compliance of food products with sanitary, veterinary, veterinary-sanitary, phytosanitary rules and regulations" [1]. at the same time, consistent reforms are being carried out in terms of economic security of food supply in the country, i.e., to ensure cheap, high-quality and complete food supply of the population, and to turn the industry into a profitable one by increasing the export of food products. in particular, the decision of the president of the republic of uzbekistan dated january 26, 2023 "on measures to establish the international institute of food technology and engineering" no. [2] was adopted, in which the following are defined among the main tasks and directions of activity of this institute: development of education in areas such as production and processing technologies, market trends, safety and quality standards (codex), network management methods and product information; such as practical and innovative research in the field of food technology and training of scientific and scientific-pedagogical personnel based on modern requirements. the above reforms show that one of the main goals is to achieve high efficiency by increasing the role of the processing industry and its sustainable development based on the introduction of new methods of ensuring food safety in our country. it is especially appropriate to use innovative cluster methods. research methodology analytical comparison, logical and comparative analysis, grouping and expert evaluation methods were widely used in this research. also, the research works of foreign and domestic scientists on the topic were widely studied and analytical conclusions were presented. analysis and results world experience also shows that the use of innovative and cluster methods in ensuring food safety based on the processing industry is promising. so what does "use of innovative and cluster-based approaches to food safety in the processing industry" include? in this regard, according to china's experience, the following approaches should occupy a central place in the development of food safety industrial policy in the country (figure 1) figure 1. food safety industry policy development process (china's experience) [3] national food and drug safety strategy: gradual improvement of the food and drug control system and mechanism; further improvement of the legal system; further improvement of management in accordance with the law. "national food safety control system" strategy: to create a food safety control system suitable for national conditions, to improve the level of food safety, to effectively guarantee the food safety of urban and rural residents. "national economic and social development" strategy: enhancing the role of civil society in food security, fully implementing the food security strategy, promoting food security projects. national food security plan strategy: full implementation of corporate responsibility, improvement of the system of legislation and regulatory documents, stricter management of resources, strengthening of punishments for illegal actions. american journal of business management, economics and banking volume 24 may 2024 p a g e | 28 www.americanjournal.org also, in european countries, corporation, cooperation and cluster methods based on highly integrated and highly technological activities are widely used to ensure food safety. in addition, any processes related to food safety are organized based on high-level technologies and knowledge. in particular, there is a "smart agrifood industry" project within the "european cluster collaboration platform" platform. smart agrifood industry is an ongoing program of events in a virtual format that brings together leading experts in technological innovation in the agrifood sector [17]. this program showcases cross-functional innovations applied to food safety and quality control in food processing. the goal of this program is to address major global challenges in the agri-food sector, such as environmental impact and biodiversity loss, food optimization, as well as food quality and safety, based on high-level technologies. in other words, "smart agrifood industry" is the measures that promote the creation of innovation trends to solve today's problems facing tomorrow's industry. it should be noted that the basis of today's clusters is the system called "localization economies" first proposed by alfred marshall in 1890. in the 1990s, michael porter's "the competitive advantage of nations" came to the attention of the general public. after that, there was an increased focus on defined clusters within countries as a source of national competitive advantage. because this demonstration, supported by empirical data collected as a result of the study of national economies, brought clustering to the fore in national, regional and even local economic strategic planning [4]. of course, after that, the cluster method began to be used in various areas of the economy, and scientific research works on its further development and improvement increased. including the definitions expressing the essence of the cluster. in particular, m. e. according to porter, a cluster is a geographical grouping of interrelated enterprises representing the same industry, their specialized suppliers and service providers, enterprises operating in related and auxiliary industries, and social institutions and organizations [5]. m.a.k. according to jallal et al., a cluster is an integrated form of interaction of enterprises in production, procurement, processing, sales, control, and the use of consulting services of scientific institutions, the purpose of which is to create innovations and put them into practice [6]. thus, the development of the industrial cluster against the background of the knowledge economy of globalization has become a global economic phenomenon. especially this specialized cluster has become popular in developed countries. due to a number of clusters around the world, "economic mosaics" have been formed [7]. in the same way, the organization of clusters in agriculture led to the creation of "agro-industry clusters". agro-industry cluster is a system of mutual relations between agricultural producers, food and processing industry enterprises, state bodies, educational and scientific institutions, infrastructure organizations, which are territorially localized and united with a single purpose of activity, and at the same time have their own characteristics. [8]. in our opinion, the main features of such an integrated structure in the form of a "cluster" are as follows: based on innovative direction; the presence of a synergistic effect. american journal of business management, economics and banking volume 24 may 2024 p a g e | 29 www.americanjournal.org based on the main features of the "cluster" method, it can be said that it is an innovative method of integration of interrelated enterprises under a single goal, another main feature of which is synergistic effect. that is, there is a high efficiency of organized "labor" (activity). in addition, the following advantages of forming and using clusters should be recognized: ensuring competitive advantage; wide possibilities of attracting foreign investments [9]; increasing productivity; increase in the possibility of reaching a new stage of development based on an innovative approach; including reducing technological dependence. it should be noted that the cluster method is based on the implementation of full-fledged innovations. therefore, in the development of clusters, the innovative environment in the country is important, and in our opinion, it is appropriate that the main goals of innovative activity in the country cover the following: diversification of existing products; improving the quality of products (services); reducing production costs of products (services) and losses (waste output) in this process; increasing the efficiency of the production process and reducing time consumption; creation of new trade markets (online trade) while maintaining traditional trade markets; ensuring compliance of the innovation process with standards; increasing the flexibility of the production process; reduction of material costs and labor costs; ensuring environmental safety. of course, based on the above goals, the following measures should be implemented in the innovative development of the food industry: 1) establishment of new food industry enterprises based on modern digital (economical) technologies, modernization of existing ones and strengthening of local raw material base; 2) study of foreign experiences on improvement of small and medium-sized food processing and production enterprises along with food industry clusters and organize their effective use in the conditions of uzbekistan; 3) acceleration of providing necessary support by the state in the direction of modernization and capitalization of technologically outdated or "incapacitated" food enterprises; 4) attracting investments, in particular, creating a favorable environment for foreign investors and creating additional opportunities for local investors, as well as comprehensive support for investment projects, etc. in addition, adapting the socio-economic values of innovative industrial clusters to the regional value system is an integral part of the cluster development strategy. because, in most cases, the main company of clusters has to choose between the strategy of acquiring additional structural enterprises and the strategy of individual development according to the priorities of the area where it is located. such priorities include, first of all, social traditions, as well as innovative potential expressed by the availability of production, financial, labor and other resources for the successful development of the region [10]. currently, clustering is one of the most effective ways to eliminate systemic problems and crisis processes in the economy. american journal of business management, economics and banking volume 24 may 2024 p a g e | 30 www.americanjournal.org table 1 the structure of the innovative industrial cluster [11] initial stage the next stage cluster type type of enterprises at a certain stage core innovative infrastructure innovation cluster enterprises and organizations developing technologies (research institutes, universities) center industrial infrastructure industrial cluster enterprises that produce innovative products based on advanced technology marketing infrastructure marketing cluster enterprises engaged in the sale of products manufactured on the basis of new technology periphery technological infrastructure technological cluster technologically related enterprises institutional infrastructure institutional cluster enterprises, organizations and institutions in an institutional structure the effective organization of the cluster depends on the activity of individual components of the cluster structure, therefore, a comprehensive approach is required [12]. based on the above, the importance of using the cluster method in the food industry can be explained as follows. today, food products as a primary product intended for consumption occupy the main part of the daily purchases of the population on a global scale. that is why it is urgent to further improve the processing capabilities of food processing enterprises and increase their economic efficiency. increasing the economic efficiency of food processing enterprises directly depends on the development of a modern cluster system [13]. in addition, the use of the cluster approach and its implementation in the food industry meet the following requirements of the world market [14]: increase the level of international division of labor; modern marketing concept is consumer oriented; such as the limitation and shortage of energy resources and raw materials on a strategic scale for most of the countries. based on these requirements, food clusters implement the following activities in order to increase the level of competitiveness [15]: first, the introduction of research and development, increasing the automation of production using resource-saving technologies; secondly, it is necessary to improve the use of new technologies and invest in the training and retraining of personnel who meet the requirements of the modern market. at the same time, in most developing countries, especially in our country, there are a number of problems that seriously hinder the development of the food industry, including: 1) high cost of food production in agricultural enterprises and lack of efficiency; 2) the fact that existing capital funds in food industry enterprises are technologically outdated and fuel is not energy-efficient; 3) problems related to the mutual integration between food growing, manufacturing or processing enterprises and trade enterprises and logistics infrastructure (in particular, the quality of roads, fuel problems and high prices); 4) problems related to rapid adaptability of food industry enterprises and adoption of innovative technologies (including lack of financial opportunities, lack of scientific approach, lack of qualified personnel); american journal of business management, economics and banking volume 24 may 2024 p a g e | 31 www.americanjournal.org 5) low institutional support or inefficient implementation of optimal organization and coordination of these measures by representatives of local authorities; 6) lack of qualified personnel and insufficient qualification of existing personnel. in our opinion, it is appropriate to use the cluster method effectively in solving these problems. however, this process should be organized on the basis of market principles and implemented on the basis of institutional support, as in the history of developed countries. because, regardless of any economic system and any country, state reforms, along with existing natural and other resources, are of particular importance in its socio-economic development. in particular, it is known from the experience of singapore, japan, usa, canada, china and european countries. as part of the conducted research, the study of the competitive mechanisms of the effective functioning of cooperative integration structures (including clusters) showed that [16]: analysis of export potential of enterprises, identification of competitive goods, possible markets of industrial products; development of a program to adapt local enterprises to new conditions for rapid export development; formation of export production zones under the most preferential regime in the policy of export promotion and import substitution. solving this problem will largely depend on the state policy aimed at attracting investments and developing the real sector of the national economy. in this regard, it is appropriate to consider the socio-economic measures and reforms of the state as an important factor in ensuring food safety based on increasing the efficiency of the food industry through the use of innovative cluster methods in the country. therefore, based on the opinions, it is possible to include institutional institutions, scientific research institutes, financial institutions, food industry enterprises, agricultural enterprises, trade enterprises and direct consumers as participants in the food industry innovation cluster, and their mutual relations can be expressed as follows (figure 2). figure 2. participants of the food industry innovation cluster and their interactions it should be noted that innovations and clusters are one of the main factors of success of food industry enterprises. because, in the previous period, the food industry was a slow-growing and low-profit sector. however, in recent years, the application of innovations and clusters in the food industry has led to its rapid development and becoming one of the most profitable sectors. of course, in the institutional institutions scientific research institutes financial institutions consumers food enterprises agricultural enterprises trade enterprises american journal of business management, economics and banking volume 24 may 2024 p a g e | 32 www.americanjournal.org development of the food industry, the increasing demand for food products around the world and, of course, the increasing price of these products are also important. in our opinion, innovative approaches and innovative technologies are necessary for effective functioning of clusters in the food industry. because only the use of innovations (technologies) ensures the dynamic development of food industry clusters and their competitiveness in domestic and foreign markets, and on this basis, their sustainable development. of course, in addition to the above-mentioned advantages, clusters also have a number of disadvantages: the absence of competitors in a particular cluster "eliminates" the need for continuous improvement of production and sales processes; dependence of the overall results on each cluster participant. based on the above, it should be noted that the effective development of the food industry on the basis of clusters is a complex process, in which high results can be achieved through effective organization and optimal management. figure 3. model of ensuring food safety based on innovative development of food industry clusters american journal of business management, economics and banking volume 24 may 2024 p a g e | 33 www.americanjournal.org the advantage of the proposed "model of innovative development of food industry clusters" is that it covers all stages and factors of innovative development of food industry clusters. that is, subjective factors, management factors (methods and tools), objective factors (organizational basis and tools) and resulting processes are presented. conclusions of course, like all economic processes, ensuring food safety based on the innovative development of food industry clusters is a complex process, and the effective functioning of this mechanism also depends on: it is necessary to achieve innovative synergistic efficiency, which ensures the capitalization of produced knowledge, acquired skills and technologies, which is one of the specific characteristics of food industry clusters; food industry clusters are highly flexible and effective structures, and it is necessary to introduce an effective mechanism of regional development based on stable relations between all cluster participants; it is the most effective form of development of economic integration in the country and it is an innovative cluster that ensures the increase of competitiveness of the economy. for this, it is necessary to create the necessary conditions for the rapid spread of new knowledge, scientific discoveries and inventions and their transformation into innovations; it is desirable to put food industry clusters as the main priority of economic activity in areas specialized in food production and to organize it efficiently. in conclusion, world experience also shows that the use of innovative and cluster methods in ensuring food safety based on the processing industry is promising. in our opinion, the main characteristics of such an integrated structure in the form of a "cluster" are as follows: it is based on an innovative direction and the presence of synergistic effect. references 1. law no. 483-i of the republic of uzbekistan dated august 30, 1997 "on the quality and safety of food products". 2. decision pq-22 of the president of the republic of uzbekistan "on measures to establish the international institute of food technology and engineering", 26.01.2023. 3. cen song, jiaming guo, fatemeh gholizadeh, jun zhuang. quantitative analysis of food safety policy—based on text mining methods // foods 2022, 11(21), 3421; https://doi.org/10.3390/foods11213421 4. davies d., larkin k. cluster development: from theory to practice-implications for the food industry / conference: proceedings of the 2002 agricultural economics society conference, at: university of wales, aberystwyth. https://www.researchgate.net/publication/319928340 5. porter m.e. location, competition, and economic development: local clusters in a global economy // economic development quarterly. volume 14, issue 1. 2022. https://doi.org/10.1177/08912424000140 6. jallal m.a.k. et al. food-cluster formation and development / iop conf. ser.: earth environ. sci. 2021. https://iopscience.iop.org/article/10.1088/1755-1315/720/1/012078/pdf https://doi.org/10.3390/foods11213421 https://www.researchgate.net/publication/319928340 https://doi.org/10.1177/08912424000140 https://iopscience.iop.org/article/10.1088/1755-1315/720/1/012078/pdf american journal of business management, economics and banking volume 24 may 2024 p a g e | 34 www.americanjournal.org 7. deli cheng. the innovation mechanism of industrial clusters based on the cooperation of intellectual property // international conference on advanced manufacturing and industrial application (icamia 2015), www.atlantis-press.com 8. капнинова о.с. и др. кластеризация сельскохозяйственного производства и пищевой промышленности // вестник академии знаний №33 (4), 2019. ст. 133 9. azamat k. et al. improving the investment environment in the country: the role and analysis of banks in the modernization of industry //journal of positive school psychology. – 2022. – т. 6. – №. 10. – с. 2220-2227. 10. yashin, s.n., koshelev, e.v., kostrigin, r.v., 2019. sostavleniye lineynogo funktsionala tsennosti innovatsionno-industrial’nogo klastera dlya regiona [compilation of linear functional of the value of the innovation and industrial cluster for the region]. management of economic systems: scientific electronic journal 130(12). available at: http://uecs.ru/innovaciiinvesticii/item/5774-2019-12-21-11-28-53. 11. suvorova l.a., zaushitsyna l.l. the formation of the development model of the innovative industrial cluster and methods for evaluating its economic effectiveness / shs web of conferences 35, 01089 (2017), doi:10.1051/shsconf/20173501089 12. polyanin, a., pronyaeva, l., pavlova, a., fedotenkova, o., rodionov, d., 2020. integrated approach for assessing the economic security of a cluster. international journal of technology 11(6), 1148–1160. 13. khotamov i.s., khidirov t.q. increasing the economic efficiency of food processing enterprises // scientific electronic journal of economics and innovative technologies 2/2022, march-april (№ 00058) p. 179-180. 14. баутин в.м. организационно-экономические основы формирования финансовопромышленных групп в апк // территория науки. 2014. № 6. с. 137-140.; шаталов м.а., мычка с.ю. организационно-экономические аспекты кластерного развития предприятий апк // актуальные направления научных исследований xxi века: теория и практика. 2014. т.2. № 5-3. с. 459-463. 15. сафронова ю.о. развитие предприятий пищевой промышленности на основе кластерного подхода // журнал «агропродовольственная экономика». http://apej.ru/article/11-15 16. субоч ф.п. ерспективы формирования центра кластерного развития инновационных технологий в апк «здоровое питание» в ареале доктрины импортозамещения союзного государства и еаэс на платформе китайско-белорусского индустриального парка «великий камень» // аграрная экoномика. №2/2023, ст. 27. 17. https://clustercollaboration.eu/content/food-safety-and-quality-control-food-processing http://www.atlantis-press.com/ http://uecs.ru/innovacii-investicii/item/5774-2019-12-21-11-28-53 http://uecs.ru/innovacii-investicii/item/5774-2019-12-21-11-28-53 http://apej.ru/article/11-15 https://clustercollaboration.eu/content/food-safety-and-quality-control-food-processing american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 1 | p a g e globalization utkir sheraliyevich achilov o’zbekiston respublikasi qurolli kuchlar akademiyasi kafedra boshlig’i +998 90 805 53 77 a b s t r a c t k e y w o r d s in this article globalization in the development of the modern world economy is one of the most basic processes and is considered a high stage of internationalization of economic life. international division of labor, international cooperation of production, foreign trade and other international economic relations interaction of national economies as a result of the development of forms connection and interdependence are becoming stronger. current economy of states without taking into account external factors development cannot be ensured. it is known that the interdependence of countries’ economies is increasing, foreign economic relations with national economies the increase in influence, the active participation of large and small countries in international relations is the internationalization of economic activity. the internationalization of the economy has passed through a number of stages past, the first is international economic cooperation and in this case, the rate of foreign trade is extremely important. between countries regulatory and legal provision of international economic relations, of reproduction processes across national borders exit is international economic cooperation. international economic integration based on the division of labor merger and mutualization of the economies of the same countries to national economies due to effective development of relations can affect in different forms and levels.[1] investment, investment environment, investment attractiveness, economic factors, investment project, free economic zone introduction globalization processes have their own characteristics, the following aspects of the development trends of international economic relations in this context can be considered. new high-tech production as a result of globalization in terms of production, scientific, technical and technological aspects adaptation to the method and rapid and wide spread of new technologies through a sharp expansion of the production line that is, barriers to the movement of goods, services and capital are possible eliminates up to a sharp improvement in the quality of the transport and communication system, goods and ensures rapid spread of services. nowadays, the information exchange is almost instantaneous.[2] economical horses about opportunities and contracts are speeding around the world american journal of business management, economics and banking volume 19 december, 2023 p a g e | 2 www.americanjournal.org is transmitted with export and import goods from one place to another and it takes several days or weeks to deliver to the place just enough. if there is a change in one market of the globe therefore, in a minute or two it is m aium in other parts of the world paint these are mainly stock exchanges, currency and commodity markets, as well as scientific innovations and their implementation may be specific to their reality. based on these, now the distance is serious for partners who are far away from each other during the period it should be noted that it is not a problem.[3] main body investments in fixed capital in uzbekistan have a growing trend increasing indicates the comfort of the investment environment. such an investment situation, giving the opportunity to quickly change the technological level of economic growth is coming according to the opinions of many experts, the rate of growth is even higher it is required to increase. such growth rates of investments are investors creation of a favorable environment for investment, influence on investment dynamics and structure with the total economic, legal, organizational, political and social conditions is determined.[4] in particular, this is why the import of investments is increasing it shows. having solved the task of creating a positive investment environment globalization of the economy and the use of investment resources available in the world thereby increasing competition among investment recipients it is important to consider its strengthening. correspondingly, if we put in from outside if we want to increase the size, better conditions for them than competitors we must have.[5] this includes not only foreign, but also national investment resources it is assumed that their "flow" abroad is for them in their own country shows that the created environment is not very comfortable. investment environment of regions contents are as follows: objective factors; stratification of the investment environment at different levels of the economy; regional investment environments of the national economy investment environment does not lead to a complex (synergism property); introducing an investment environment into the economic system of the region; emergence of various risks as a result of certain conditions. the task of constant monitoring of the investment environment is urgent is considered.[6] conclusion if we conclude from the above, it is foreign in our country attracting investments, aimed at increasing the investment attractiveness of regions and increase the efficiency of attracted foreign direct investments systematic works on in addition, investment projects regional bodies responsible for monitoring the effectiveness of done these measures have been implemented in the regions and the country will contribute more to the economy. references 1. karimov i.a. mamlakatimizda demokratik islohotlami yanada chuqurlashtirish va fuqarolik jamiyatini rivojlantirish konsepsiyasi: o‘zbekiston respublikasi oliy majlisi qonunchilik palatasi va senatining qo‘shma majlisidagi m a’ruzasi. т.: o‘zbekiston, 2010. 56 b. 2. karimov l.a jahon moliyaviy-iqtisodiy inqirozi, o‘zbekiston sharoitida uni bartaraf etishning yo‘llari va choralari.t.: 0 ‘zbekiston ,2009-56-b. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 3 www.americanjournal.org 3. karimov i.a. 2014-yil yuqori o‘sish sur’atlari bilan rivojlanish, barcha mavjud iinkonvyatlanni safarbar etish, o‘zini oqlagan islohotlar strategiyasini izchil davom ettirish-yili bo‘la d it .o‘zbekiston ,2014. 6-b. 4. nazarova g .g \, n.m.salixova. jahon iqtisodiyotining globallashuvi. o‘quv qo‘llanma. т.: td1u, “iqtisodiyot”, 2011. 320 b. 5. фаминский и.п. глобализация новое качество мировой экономики: учеб. пособие. м.: магистр, 2009. 397 с. 6. а.а. isadjanov. jahon iqtisodiyotining globallashuvi. т.: jidu, 2 0 0 8 ,185 b. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 1 www.americanjournal.org development of digital economy in uzbekistan senior teacher t. s. saidmuradova, student m. sh. toshtemirova tashkent textile and light industry institute a b s t r a c t k e y w o r d s this article presents the concept of digital economy, definitions of digital economy, development of digital economy, number of internet users, implementation of digital economy program, main indicators and criteria of digital economy. digital economy, development of digital economy, main indicators of digital economy, criteria of digital economy, electronic business, electronic commerce. introduction currently, the digital economy and a number of effective technologies related to it, e-commerce and ebusiness are rapidly entering our lives. therefore, in order to accelerate the development of the state and society, several decisions and decrees were adopted by the leadership of our republic. decision no. pq-4699 of the president of the republic of uzbekistan dated april 28, 2020 "on measures for the widespread introduction of digital economy and electronic government" and the decree of the president of the republic of uzbekistan dated february 19, 2018 "on measures to further develop the field of information technologies and communications" decree no. 5349 is one of them. the main factor of digital transformations in the activities of market entities is the development of digital culture. at the current stage of social and economic reform of the society, the environment is causing specific features of the institutional structure of the society, and on this basis, it is necessary to form new concepts and approaches. literature analysis on the topic the concept of digital economy has been given a number of definitions. for example, v. ivanov, doctor of economics, corresponding member of the russian academy of sciences, defined that "digital economy is a virtual environment that complements our reality." professor of tomsk state university, r. according to meshcheryakov, there are two approaches to the term "digital economy". m.l. kalujskiy defined the digital economy as the economic activity of the internet, as well as its forms, methods, means, and the communication environment of its implementation. r.h. ayupov and g.r.voltabaeva's textbook "fundamentals of digital economy" provides insights into the components and elements of the digital economy, the development of e-commerce and the development of the e-commerce market, and digital technologies. american journal of business management, economics and banking volume 30 november 2024 p a g e | 2 www.americanjournal.org research methodology the activities of the digital economy were closely studied and a database was compiled. based on the collected data, methods such as observation and comparison of economic analysis, systematic approach and logical approach were used effectively. analysis results if we assume that the development of the digital economy conditionally began in 1990, then we can note that it has the following stages: 1990-2005: the emergence of the digital economy, we can see that this period consists of four parts the dotcom era, the development of new e-services markets, the emergence of e-business and e commerce. 2005-2010: the period of growth of the digital economy during this period, electronic services were launched and new types of electronic products were created. 2010-2015: a period of maturation of the digital economy, in which online opportunities emerged and digital technologies began to gradually penetrate traditional businesses. 2015-2020: the penetration of digital technologies into unexpected areas and the transformation of traditional business models and the emergence of several new e-business models. 2020-2030: implementation of systematic transformation of digital technologies, i.e., implementation of digitization based on a systematic approach, raising them to a qualitatively new level based on cryptosystems. in the digital economy, information in digital form is the main element of production in all socio economic spheres, and it increases the country's global competitiveness, improves the quality of life of citizens, creates new jobs, enables economic growth and ensures national independence. the consistent implementation of the digital economy program in life allows you to achieve the following: completely eliminates the legal obstacles that prevent the creation of new technologies by creating a new legal framework; creation and development of digital economy infrastructure, including networks, data processing centers, technical and software development in accordance with modern requirements; ensures comprehensive development and renewal of the educational system; creates a thorough basis for the development of various companies, firms, state enterprises and business in the country; it leads to the formation of organizations operating in the field of digital economy, etc. this digital economy development program should serve to realize the following goals: creating an ecosystem of digital economy in the republic of uzbekistan; creation of institutions and infrastructure of the country's digital economy system; implementation of all necessary measures for the organization of information society covering all branches of the republic; increasing the competitiveness of the republic on a global scale and global markets. based on the above, we can show the following as examples of the main indicators of the digital economy of our country: emergence of digital products and electronic services; achieving a change in the nature of various organizations and enterprises and, therefore, digitizing their activities; american journal of business management, economics and banking volume 30 november 2024 p a g e | 3 www.americanjournal.org creating digital platforms that serve as the basis of the digital economy; changing the nature of competition to adapt to the digital economy; adapting the nature of consumers to digital economy processes; emergence of new progressive models and mechanisms of production; formation and development of new types of business models; the transformation of the business models of traditional companies under the influence of the abovementioned 4.0 industry technologies. it should also be said that the number of internet users has exceeded four billion. the number of mobile phones has increased more than the number of people. competition between companies and their nature is also fundamentally changing. the capitalization of the company directly depends on the number of its internet users, the number of subscribers and the participants of the interested communities. the capitalization of companies in the field of ebusiness depends on the number of users and the increase in their number. this causes the companies to receive a large amount of income from sales. thus, the digital economy is a new economic environment that creates new and huge opportunities for business. summary the universality of the impact of growing information flows on the development of the economy and society allows us to talk about them as the leading resource of economic growth of modern society. we can distinguish four criteria of the analysis of the digital economy, which are considered by different researchers to one degree or another: criteria related to the field of employment; spatial criterion; technological criterion; economic criteria. in this, although researchers often prefer one or another definition that fits their imagination, there may be criteria that complement each other. however, most definitions are based on the belief that quantitative changes in the field of data processing will lead to qualitatively new socioeconomic relations. references 1. resolution pq-4699 of the president of the/ republic of uzbekistan dated april 28, 2020 "on measures for the widespread introduction of the digital economy and electronic government". 2. r.h.ayupov, g.r.boltaboeva. basics of digital economy.t.: tmi, 2020, 575 p. 3. s.s. gulyamov, r.h. ayupov. basics of digital economy and e-commerce. study guide. -t.: "economy-finance" publishing house, 2020, 510 p. 4. s.s. gulyamov, r.h. ayupov, g.r. baltabaeva. blockchain technologies in the digital economy. study guide. t.: "economics-finance", 2019, 380 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 19, | december, 2023 28 | p a g e foreign investment attraction and investment environment amirov zubaydullo toir son tashkent architectural construction university teacher a b s t r a c t k e y w o r d s in the present article is given investment environment in attracting of investments and capital flow. in particular is offered investment environment of developed countries of the world and criteria of assessment of investment environment in investments involving process. studied the investment environment of the usa, germany and other developed countries. capital flow, investment, investment environment, financing, inflation rate, rating agencies. introduction uzbekistan has been accelerating economic reforms in recent years in order to enter the world market and take a place among developed countries. the use of the experience of advanced countries in attracting capital flows and foreign investments to our country is becoming a demand for the period. one of the necessary general criteria for making an investment decision is to create an investision environment at the macro level and increase the investision attractiveness of the object being invested. in economic-themed literature, the investision environment and the investision attraction are often interpreted as synonymous concepts. but their initial one is very broad and has a great meaning. it, to be honest, is the main description of the investment environment in a country, region, economic regions or network. the investor is advised to assess the attractiveness of the investment of a particular object or investment project, taking into account the rating assessment of the investment environment. so what to understand by investision environment? most authors describe the content of the categories being researched in different ways when they refer to investision environmental problems. some believe that the concept of "investiture environment" reflects the optimal level of the developing situation in a given region in terms of investments that can be made in its socio-economic system [1]. it is often interpreted as" a set of political, sociocultural, financial, economic and territorial conditions that determine the quality of the existing entrepreneurial infrastructure in any state, the effectiveness of investments and the level of risk that can arise in the investment of capital " [2]. from this definition it can be concluded that "the investiture environment is one of the factors of the external environment of the enterprise and determines the advantages of potential investors for the enterprise". therefore, the investiture environment is a complex of social, economic, political and other conditions that create a certain level of attractiveness of financial investments. american journal of business management, economics and banking volume 19 december, 2023 p a g e | 29 www.americanjournal.org there are also definitions that more accurately interpret this concept. often, however, investision risks that predetermine the investision environment are ignored. therefore, the definition presented in the encyclopedic dictionary of finance and credit is said to be the most correct and complete. according to him, investision's environmental factors include: • economic factors-local government powers, stability of the legislative and community structure, distribution of power between various political groups and parties, the state of international relations, the level of development of the legislative base, the presence of mechanisms for guaranteeing and protecting investments, legal conditions for investing in one sphere; • · social factors-social conditions of life of the population, the level of social tension, the presence of social conflicts, the level of development of the social sphere; • economic factors the most influential factors-are the structure of the economy of the region–the level of economic development of the region, the predominance of investiture activity, the capabilities of the existing local market, the economic policy of the government on the development of industries under investment, the possibilities of transferring dividends abroad, the level of inflation, the availability of investiture facilities with high efficiency; • financial factors-the level of balance between the regional budget and the finances of the enterprise, the taxation system, the state of the balance of payments and the profitability of enterprises in the region; • resources and raw material factors-provided by the natural resources of the region; • labor factors-the availability of labor resources and their level of qualification, professionalqualification level of labor resources; • factors of production-features of the field specialty, availability and placement of the necessary resources for production; • infrastructural factors-the territorial-geographical position of the region, the appropriation of infrastructure, the organization and security of the region, the development of telecommunication systems, the presence of investiture infrastructures, the level of development of the infrastructure of the market economy; • environmental factors-level of environmental pollution, natural-climatic conditions in the region; • criminal factors-corruption of the power structure, the level of crime in the region. as a rule, investment environmental factors are classified within the scope of the impact of society on them, that is, in terms of their objective and subjective capabilities. the initial factors will be diverse, and the subsequent factors will depend on human activity. it is also possible to distinguish between positive and negative influencing aspects of the investment environment [3]. here are the conditions that will help create a favorable investment climate in the country and increase investiture activity: • high domestic market potential; • high standard of income; • low level of competition; • sustainable tax system; • low cost of resources: raw materials, labor and financial resources; • effective support provided by the state. the following are factors that prevent the development of investment processes and lead to a deterioration in the investment environment in the country: american journal of business management, economics and banking volume 19 december, 2023 p a g e | 30 www.americanjournal.org • political instability; • social tension, invasion, war of mafia structures, religious and ethnic clashes; • high inflation rate; • high rate of refinancing; • high level of external and internal debt; • budget deficit; • passive balance of payment balance; • failure of legislation to develop well, including enforcement of laws governing the investiture environment; • high transaction costs. so, the investiture environment can be considered in the cross section of the sum of political, socioeconomic, financial, organizational and legal and geographical factors that attract or distance potential investors from itself. it is the sum of the political, socio-cultural, financial and economic, legal conditions that determine the quality of the country's entrepreneurial infrastructure, the effectiveness of investment and the degree of probability of risks encountered in the introduction of capital. in other words, the balance of investment efficiency and investigation risk are determined by the investision environment. investigation risk determining factors. in order to understand the essence of the studied category and form the author's point of view on its content, it is necessary to analyze the factors that caused the development of the investiture environment. among the common factors that are one of the most important elements of the investment environment in the region, which has a strong influence on investor preferences, according to the literature on the economic topic, the following can be distinguished: invesvision environmental assessment. it is very difficult to assess the exact amount of investment environment. it was approved to be assessed in a positive, negative, neutral (neutral) [4] aspect. assessment of the investment environment serves as a factor in the optimization of capital investment flows. it is conducted by consulting firms, banks, newspapers, magazines, government agencies, such as the department of commerce, insurance companies, pension funds in the united states [5]. on the basis of the investision environment lies the charm of investision. this is understood as the presence of certain conditions that affect the investor's choice of the object of investment. these conditions include: investment potential-investision quantitative description of attractiveness; investision risk-investision attractiveness quantitative description; investision includes a qualitative assessment of attractiveness. investision the object of study of the environment is countries, regions, cities and networks in them. investision methods of assessing the environment are very numerous, and the styles used are varietal. in a number of states, chunonchi, japan uses descriptive methods without any quantitative evaluations. but the method of economic indicators, represented by numbers, is quite common. given the significant economic and political differences between some countries, it is an extremely difficult task to clarify the obvious advantages in different areas of the national economy. countries american journal of business management, economics and banking volume 19 december, 2023 p a g e | 31 www.americanjournal.org with a transitional economy, including russia, use the beri index method. the assessment is carried out according to 15 criteria, measured in interest: political stability – 12, economic growth rate-10, currency conversion, etc. – 10, the possibility of long-term lending and the conditions for contributing to the share of capital by a foreign investor-8, the possibility of short – term lending – 8, costs for wages and labor efficiency – 8, devaluation – 8, the state of the balance of payments – 6, the possibility of implementing the contract – 6, the attitude to foreign investments and income-6, the possibility of nationalization: from – 6, the level of state regulation of bureaucratic procedures – 4, local government and cooperation – 4, the organization of transport and communication – 4, the possibility of using experts and services – 2. each criterion was evaluated in very favorable scores from one to four undesirable. the beri index is a synthetic indicator and is the sum of expert assessment scores of individual component criteria. this method has been subject to a certain degree of subjective, primarily political, thinking, mainly when it comes to risk assessment. the ranking given by various national and international agencies is important in the invesvision environmental assessment. large and very popular rating agencies were the first to be established in the united states. moody's investors, standard & poor's, fitsch – ibca are among these agencies. they have representative offices in more than a dozen countries, operate on standards equal to all states, and use the same method of assessment and rating scales [6]. while this, on the one hand, is considered a positive case, on the other hand, ratings aimed at international financial markets do not take into account national and regional characteristics. another sentence. data from rating agencies may not be able to provide detailed coverage of the invesvision environment. boisi-they do not fully disclose the complex economic system of the country. but this information serves as an auxiliary tool for investors to make decisions regarding the correct choice of the object to be invested in. international agencies are obligated to support the balance of interests of most investor-countries and reps in ranking. this leads to conflict of interest, taking into account the complexity of assessing the risks of the country. it is believed that even the global economic crisis, which began in 2008 and covers all countries of the world, was caused precisely by the misjudgment of the well-being of us companies and banks by rating agencies [7]. currently, agencies rely on the opinion of the team and the point of view of financial institutions, giving their conclusions using the main parameters. in fact, they need to be formed by themselves. otherwise, the quality of the conclusions will continue to deteriorate. the "big twenty"-g – 20 summit, dedicated to the global financial and economic crisis, noted that the existing system of financial analysis in the world has been revised, and it was announced that others will replace the agencies that made mistakes [8]. russia proposed the creation of a new international rating agency. it can be established by the states attending the meeting. and the goal should not be to generate income, but to correctly assess the financial condition of companies and economic processes. of the measures aimed at the formation of a favorable investiture environment in russia, the following can be distinguished: development of public-private sector cooperation, which allows to significantly increase the efficiency of investment projects through the use of public and private investment facilities; investision improvement of legal and regulatory framework of activity; american journal of business management, economics and banking volume 19 december, 2023 p a g e | 32 www.americanjournal.org formation of investment industry infrastructure; development of a long-term lending system; progress small entrepreneurship. it is permissible to consider the following concrete measures in this direction: change or repeal of various legislation making it difficult to carry out entrepreneurial and investment activities; to reduce the impact of state companies on the investment environment with the privatization of large share packages owned by the federal government and the addition of independent managers with the participation of heads of state of heads of federal executive agencies, in addition to the board of directors of joint stock companies; increased control over corruption crimes [9]. in place of the conclusion, it can be said that the investment environment is a complex and multistage concept. this complexity, as we have already noted, is formed under the influence of many factors that create conditions for investment activities. investision indicates that the multilevel character of the environment is assessed at the level of its country, region, sectors of the economy. if for a foreign investor the country's rating is strictly important, the region and network rating are important for foreign as well as domestic investors. investor investision selects an object to be funded by assessing attractiveness. the approach to its assessment is diverse in terms of the novelty or mobility of the object. but in any situation, the effectiveness and risk of investing is very important for an investor, such as the investment environment assessment. references 1. berzon n. formation of the investment climate in the economy. economic issues. 2001, 112114-p. 2. international monetary, credit and financial relations. a study guide. edited by krasavina l.n. m.: finance and statistics. 2000, 36-38-p. 3. karimov i.o. ways to improve the efficiency of investment projects in construction. acadenicia an international multidisciplinary research journal issn 2249-7137 vol.10 issue 5, may 2020. 4. karimov i.o. attracting investment projects to the construction industry and improving their efficiency. saarj journal on banking & insurance research 10 (1), 47-53, 2021, south asian academic research journals. 5. metelev s.e. transformational transformations in russia and criminal phenomena at the present stage of society development. criminological journal of the baikal state university of economics and law. 2014, no. 1, 69-76-p. 6. metelev s.e., chizhik v.p., elkin s.e., kalinina n.m. investment management. moscow, 2015. 7. иномжон ортикбаевич каримов. қурилиш корхоналарида инвестицияларни бошқариш самарадорлигини аниқлашда вақт омилининг ўрни ва аҳамияти. o'zbekistonda fanlararo innovatsiyalar va ilmiy tadqiqotlar jurnali.№2. 2023/11/21 8. m ya isokhuzhaeva, aa mirisev, io karimov, so ibragimov. journal of positive school psychology. legal factors affecting the efficiency of state management of the digital economy. № 6/72022/10/3 9. www.mf.uz – website of the ministry of finance of the republic of uzbekistan. 10. www.stat.uz – website of the state statistics office of the republic of uzbekistan. https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=ecckwdkaaaaj&sortby=pubdate&citation_for_view=ecckwdkaaaaj:2osognq5qmec https://bestpublication.org/index.php/ozf/article/download/8275/8500 https://bestpublication.org/index.php/ozf/article/download/8275/8500 http://mail.journalppw.com/index.php/jpsp/article/view/12559 http://mail.journalppw.com/index.php/jpsp/article/view/12559 http://www.mf.uz/ http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 208 www.americanjournal.org transformation of audit service guzal yashinovna babaeva tashkent state university of economics associate professor of the department “banking accounting and audit” babaeva-guzal @mail.ru +99893 563 40 83 sagdiana doniyor qizi namozova tashkent state university of economics, 3rd year, group bia-40 19wolf30@gmail.com +998 90 067-19-10 a b s t r a c t k e y w o r d s in this paper, the authors attempt to formulate a new definition of the concept of modern audit as a process in which internal auditors use information and communication technologies (ict) in conjunction with analytical procedures to collect electronic evidence, interact with the auditee, and prepare a report on the reliability of financial data and internal control systems regardless of the auditor's physical location. based on research on virtual teams and analysis of internal audit activities, we present a research framework that defines the areas in which ict and automated audit analytics allow auditors to work remotely, reduce travel expenses and wait times, and improve efficiency and coverage. audit innovation, remote audit, continuous audit, internal audit: communication; evidence, virtual teams, information and communication technologies (ict). introduction auditing has been a constantly changing discipline since its inception over 100 years ago. but how much have the challenges facing accountants changed in the last decade? today, auditing continues to face a number of unresolved issues, such as: the need to keep pace with different business models; the emergence of new technologies that are constantly changing the way we live and do business; the increase and tightening of regulatory requirements with a comprehensive impact on all sectors. such a change in business and regulatory circumstances has significant consequences. auditors are faced with the task of not only deciding how to implement these changes into their own business and activities, but also considering how the news will affect their clients or those with whom they do business. american journal of business management, economics and banking volume 23 april 2024 p a g e | 209 www.americanjournal.org audit as a complex process the audit is a multifaceted and complex process aimed at achieving high-quality results and work efficiency (i.e., minimizing audit risk). auditing activities are the entrepreneurial activities of audit organizations to provide audit services. [1] being entrepreneurial by definition, the activities of auditors and audit firms always strive to minimize costs. it is obvious that it is not possible to achieve both minimum costs and minimum audit risk at the same time. since a decrease in audit risk is inevitably associated with an increase in the sample size (an increase in labor costs) or with the involvement of more experienced specialists (an increase in cost). thus, the auditor faces the task of optimization: to minimize the costs of conducting the audit at an acceptable level of risk, or to minimize the audit risk at acceptable labor costs. to approach the optimal option for conducting an audit, it must be properly planned. therefore, we can say that the goal of planning is to ensure that the audit is carried out in the best (optimal) way from the point of view of the ratio of possible audit risk and audit costs. remote audit as a new approach audit practitioners are gradually introducing communication and analytical technologies to scale, change timelines, and reduce the cost of audit processes. these efforts were mainly episodic and did not have a holistic theoretical positioning. a significant part of the research literature is devoted to audit automation, however, less attention is paid to one of the main advantages of technologies in auditing the ability to reduce the amount of on-site audit work and shift it to remote employees. while continuous auditing expands the scope of auditing, allowing procedures to be carried out on an ongoing basis and on demand, remote auditing reduces the location requirements for auditors, allowing them to distribute audit tasks between on-site and remote audit team members. adding a remote internal audit component is not just a side benefit of audit automation, it is a driving force for the use of technology and an opportunity to rethink the approach to auditing. we define the term "remote audit" as follows: a process in which auditors use information and communication technologies (ict) and data analytics to assess the reliability of financial data and internal controls, collect electronic evidence, and interact with the auditee. [2] the two main elements of remote auditing ict and analytics provide the basis for future research on the technical and behavioral aspects of remote auditing. figure 1 illustrates these elements. both on-site and remotely, audit team members use ict to interact with both process managers and each other. auditors also use automated tools to extract and analyze data from the audited organization's systems to verify internal controls and transactions. conclusion as the cost of technology and internet access continues to decline and budget pressure mounts, more and more internal audit groups are using remote audit technologies. additional motivations for organizations to conduct remote audits include improving audit quality, increasing client contact time, increasing auditor contact time, expanding audit coverage, and reducing travel and entertainment expenses. american journal of business management, economics and banking volume 23 april 2024 p a g e | 210 www.americanjournal.org figure 1. components of remote auditing research questions remain open before the remote audit component, which concern both technical design and behavioral effects. for example: • to what extent can the audit process be extended using ict? how will auditors form their virtual teams? • will employees be deterred from committing fraud if they are aware of the existence of remote auditing? as for the last question, we expect that a more intense deterrent effect will be observed when remote auditing is combined with continuous monitoring, as shown in figure 2, comparable to that observed when surveillance cameras are installed in retail stores. figure 2. the effect of the deterrent effect of violations in traditional and remote auditing d is ta n tl y o ff lin e audit team managers audit team communication (ict) extraction and analytics american journal of business management, economics and banking volume 23 april 2024 p a g e | 211 www.americanjournal.org similar to how general motors’ onstar system allows for monitoring the condition of a car and providing assistance in between garage visits, remote auditing allows auditors to track operations and communicate with business process owners throughout and after the conduct of official audit tasks. similarly, when continuous audit systems alert auditors to potential internal control deficiencies, fraud, or errors, auditors can respond to them remotely to help management resolve these issues. other potential benefits of remote auditing were discussed earlier. audit efficiency can be achieved by reducing latency, which takes up labor and capital. delays occur in all business processes, particularly in the audit process, as shown in the figure. 3. task procurement, audit planning, internal control resource assessment, compliance with internal control requirements, and substantive testing all these processes experience significant intra and inter-process delays during the execution of audit tasks and meetings with auditors. delays in decision-making and obtaining results occur when making audit decisions and compiling reports, as auditors work with managers to solve problems. reducing delays in any of these subprocesses can free up resources, especially auditors’ labor costs, for use in other areas. ultimately, internal auditors themselves will determine what benefits they will get from remote auditing: whether they will lean towards the field option or will conduct more procedures using telework and virtual teams, using a larger number of automated and continuous audit tools. figure 3. types of delays in the audit process virtual teams are typically defined as “groups of geographically and/or organizationally separated employees who come together using a combination of telecommunications and information technologies to perform various critically important tasks.” these specialized teams consist of people connected by ict and form dynamic relationships for coordination and delegation of responsibility. increasingly, virtual teams are formed in organizations that strive to optimize business processes and stimulate collaboration between employees, such as software developers and traders trading risks and positions. they allow for the effective use of geographically distributed experience and provide economic benefits such as a 24-hour workday. business process 1 business process 2 solution outcome inter-process latency time required to transfer information between processes result latency the time it takes for a decision to lead to a result decision latency time required to make a decision in-process delay time required to execute the process american journal of business management, economics and banking volume 23 april 2024 p a g e | 212 www.americanjournal.org internal auditors already collaborate and coordinate their actions with team members at (potentially) large distances to complete an audit. in cases where the internal audit function is outsourced or performed within a large, global company, virtual audit groups become the norm in an attempt to reduce operational costs and increase efficiency. there is extensive literature studying the dynamics of the development of virtual teams and organizations and addressing issues such as trust and communication. virtual teams are an important precursor to remote auditing. in remote auditing, a virtual team coordinates the work of auditors who are physically present at the audit site, and auditors who are in other locations, such as the company’s headquarters. collaboration between the virtual team and business process owners ensures timely completion of the audit. while trust and communication are key elements of virtual teams, the audit environment may present unique challenges, such as the role of professional skepticism needed to ensure objectivity, and the level of communication required to provide assurances regarding internal control. what are the trade-offs between trust and skepticism during a remote audit? will incomplete trust increase the volume of the audit? will auditors working remotely face an increased volume of ambiguous communication, typical for virtual teams? how will they handle redundant information? the transition of the audit group from fully periodic on-site work to a combination of on-site and remote work will require a broader use of ict and an increase in competence in this area, as well as training in the use of technologies, group processes and, in some cases, cross-cultural awareness. in many cases, technology opens up opportunities for reorganizing the audit process itself to increase efficiency and expand coverage. understanding how technologies affect the development and use of audit procedures will require further research. remote auditing provides an opportunity to innovate the internal audit process. the responsibilities of internal auditors include a “systematic, disciplined approach to assessing and improving the effectiveness of risk management, control, and governance processes”. internal auditors develop new methods to combat fraud and errors, monitor internal control resources, test process effectiveness, and consult management to improve business operations. they conduct financial, operational audits, compliance audits, investigation audits, fraud audits, information system audits, and other miscellaneous audits to determine how well the organization and its systems are functioning. placing the audit in communication and analytical frameworks allows understanding which aspects of the audit can really be performed remotely and how to do it. currently, most internal auditors are working on-site. video conferences can replace many typical face-to-face audit meetings, but not those where it is necessary to analyze all the subtleties and nuances of the conversation, for example, an interview with a person suspected of fraud, or interaction aimed at reducing stress between the auditor and the client. table 1 shows how different types of audit activities can be performed on-site and remotely. in practice, as we believe, there will be a relationship between fully outbound and fully remote methods, and auditors will have to determine which methodology is suitable for their situation. further research should give an idea of how much this corresponds to practice. american journal of business management, economics and banking volume 23 april 2024 p a g e | 213 www.americanjournal.org table 1. types of audit activities on-site and remotely. audit activity on-site audit methodology remote audit methodology procurement for audits auditors conduct lunch meetings and office visits auditors also use email and telephone to organize audits, meet with management in web conferences, and conduct followup meetings via email audit planning audit teams meet physically to define audit objectives and delegate tasks virtual audit teams meet in web conferences to discuss audit details. tasks are assigned automatically in the electronic document system evaluate internal controls and verify compliance with regulatory requirements auditors interview process owners, evaluate paper and digital documentation, run test control setups, or evaluate data on their laptops. using the laptop, auditors locally extract sample transactions and check for anomalies. auditors interview process owners via videoconference, connect to the client system over the network, and run analytical tests through a terminal. they also check audit logs. on a laptop, auditors receive a sample of transactions over the network and check them for anomalies. in continuous mode, automated systems perform full sample testing and provide the auditor with a list of exceptions for follow-up. audit decisions and reporting auditors meet with process owners for follow-up activities. reports to management, audit committee and/or external auditors. same but via web conferencing. since remote auditing implies the creation of virtual teams, the assessment and modification of audit procedure formulations will help audit managers distribute responsibilities between on-site and remote team members, as well as determine the technology and audit methodology necessary for coordinating their efforts. many procedures will necessarily be restructured in such a way that remote auditors can take on the role of a permanent proctor, notifying the auditor of failures occurring within or outside the periodic audit. ict has already had a significant impact on the methods of work of enterprises and auditors, providing decentralization. many companies use email, web conferencing, online document storage, real-time collaboration tools, and telepresence to develop new products and interact with colleagues in other regions. to a large extent, auditors also use some of these tools to coordinate actions with each other. throughout the entire evidence collection process, interpersonal interaction affects the efficiency and result of the audit. as with virtual teams, remote auditing has the additional problem of limited sensory perception when the auditor is not physically present during tests, interviews, etc. the influence of trust and cooperation in virtual teams is well documented and is the basis for using ict for electronic communication. to conduct a remote audit, it is necessary to expand the currently used ict (for example, email), including additional technologies that facilitate remote communication, centralized evidence american journal of business management, economics and banking volume 23 april 2024 p a g e | 214 www.americanjournal.org collection, and coordination of audit team actions. these are the main tasks of web conferencing and teleworking. the concepts of web conferencing and teleworking are designed to “help groups in communication, collaboration, and coordination of their activities”. ellis et al. define the basic philosophy of group software to improve group communication in conditions of dispersion in time and space. starting with message systems, they move on to discussing computer conferences, intelligent agents, and coordination systems, which were the precursors of the modern scheme of email, video conferencing, artificial intelligence, and planning applications used for remote auditing. the it departments of many organizations have implemented tools for conducting web conferences to help managers and process owners communicate with suppliers and clients. depending on the security policy of the organization, access to many of these services can now be obtained directly through a web browser. these services provide computer-mediated communication, supplementing voice with visual cues (using live bidirectional video streams) and joint viewing of information (using screen and application sharing). two problems hindering the implementation of these technologies are the uncertainty inherent in using new technologies, and the need to change processes for more effective use of technologies. from a behavioral point of view, remote auditing can be understood by considering the prevalence of teleworking, where employees can choose from several physical workplaces and use electronic communication to perform their tasks. many of the same issues of motivation and productivity that apply to teleworking apply to remote interaction between internal auditors and business process managers. in table 2, we present some of these open questions of behavioral research. behavioral problems, if not resolved, will reduce the potential benefits of remote auditing. for example, icts are beneficial only if the auditor is trained, feels competent, and effectively performs their tasks. inadequate use can also prompt the audited person to hide fraud, divert the threat of control, or distrust the auditor. future research needs to determine to what extent these problems exist and affect the implementation of remote auditing. electronic working papers (ewp) are specifically designed for auditing. ewp systems are based on electronic document management systems (edms) and contain tools and workflows that help collect and analyze audit data. in the context of remote auditing. ewp contains evidence collected at the request of the auditor, as well as data related to operations, extracted and generated by an automated system. many accounting firms are implementing more complex database-oriented systems with varying degrees of success. however, the current state of systems is aimed at simulating a history-oriented audit, not creating a real-time snapshot of the internal control system’s operation. moreover, many internal audit departments and some large cpa firms limit themselves to the capabilities of desktop productivity software and reject the enormous potential value of a modern ewp system. for example, process analysis is used to evaluate enterprise resource planning (erp) logs and obtain information about the steps people take in performing their duties. as data is increasingly consolidated into erps, the application of technologies such as process analysis will not only provide context for this data but also help auditors gain a more complete understanding of failures from any network device. online ewps facilitate centralized data collection during an audit. specific monitoring events can initiate automatic data collection from erp systems or edms, so auditors can focus their efforts on tracking the problem, not on manual evidence collection. with the centralization and synchronization american journal of business management, economics and banking volume 23 april 2024 p a g e | 215 www.americanjournal.org of online ewps, any member of the audit team can access and view the work of the audit team, thereby reducing data and effort duplication. remote auditing uses ict to create a richer audit experience. however, according to vasarhelyi and kuenkaev, internal audit departments typically use auxiliary technologies to simply repeat existing procedures, rather than adapt them to provide more reliable assurances regarding new data and information flows1a. an auditor may use a spreadsheet for visual sample evaluation, a macro for analysis, email to obtain information from the audited person, or a laptop to store audit evidence, but if they have to travel from atlanta to dayton to conduct tests when data is easily accessible on the internet, they are not using all the advantages of available technologies for conducting a more interactive audit, for example, using monitoring platforms and collaboration tools. this reflects hammer’s thesis that process reengineering, not simple automation, should be the result of a new process conceptualization. enterprise resource planning (erp) systems allow authorized users to collect and analyze disaggregated data and provide reports on many issues, ranging from key performance indicators to customer behavior. while evidence has traditionally been static and labor-intensive to collect, the progressing availability of real-time data allows for the automation of audit analytical procedures, continuous process monitoring, and automatic evidence collection across all business processes, customers, and suppliers. financial and non-financial data are constantly coming in, allowing internal auditors to expand the scope of their checks, including the entire set of current, relevant operations2. this may include alarm signals triggered by control system failures and the subsequent response of management and auditors. in many cases, internal auditors work with it departments, management, and consultants to determine the amount and types of evidence that need to be collected. table 2 provides examples of on-site and remote audit methodologies that can be used to obtain data for specific audit procedures. checking paper documents, for example, requires the auditor to physically extract samples of authorized forms and check for signatures and their compliance with authority lists. while many companies are gradually implementing electronic documents and signatures, remote auditing depends on access to electronic data, which is provided by the reengineering process. for such documents as invoices and credit applications, reengineering involves the implementation of devices and procedures for scanning documents, analyzing characters and signatures, and storing them online. ideally, this data should be recorded directly in the erp module and follow the approved workflow. as consultants, internal auditors will work with business process owners in cases where reengineering is needed. icts can improve interpersonal communication, knowledge sharing, and project management, especially within virtual audit teams. 1 alles, m. g. brennan, a. kogan, and m. a. vasarhelyi. 2006. continuous monitoring of business process control: pilot implementation of a continuous audit system in siemens. international journal of accounting information systems 7 (2): 139. 2 armbrust, m. a. fox, r. griffith, a.d. joseph, r.h. katz, a. konwinski, g. lee, d.a. patterson, a. rabkin. 1. stoica, and m. zaharia. 2009. above the clouds: berkeley view of cloud computing american journal of business management, economics and banking volume 23 april 2024 p a g e | 216 www.americanjournal.org table 2. audit procedures for obtaining audit evidence. procedure on-site audit methodology remote audit methodology inspection of records or documents (for example... authorization) conduct a sample of purchase orders and verify authorized signatures and compliance with the authorization list. evaluate the entire population of purchase orders (pos) in erp and verify that the pos pass through the approval process and have an authorized user stamp. inspection of tangible assets (for example, an inventory) print inventory list, walk through warehouse, open boxes, etc. utilize video surveillance, scales, other metrics. observation (for example, observing the execution of a process) observing the employee and observing the procedure. utilize process analysis to identify operations that do not follow standard workflow. interview (for example, written or oral questioning) communicating electronically or in person as part of a traditional audit. process/control monitoring. automatically identify process owner when exceptions occur. confirmation (for example, verification of account balances) sending letters or emails to customers, suppliers, etc. evaluate related data flows from financial institutions. other enterprises through ides. etc. recalculation (for example, using caat to recalculate figures) manually extracting data, running caats transaction monitoring, automatic settlement execution at standard intervals, process integrity checking, process change monitoring. re-performance (for example, aging of accounts receivable) manually extract data, run caats account monitoring, automatic execution of settlements, replication of transactions. analytical procedures (for example, scanning and statistics) extract data, check for anomalies based on auditor judgment. filter real-time data using continuity equations, ratio analysis. remote auditing provides internal auditors with the opportunity to use technology and adapt to a changing information environment. if continuous auditing eases the time constraints of auditing, then remote auditing softens the location constraint. the implementation of remote auditing can force auditors to radically rethink their approach to conducting an audit, forming and managing an audit group. in addition to the requirements, motivations, and technologies associated with remote auditing, the central role is played by the reengineering of audit processes. in the process of audit reengineering, a multitude of questions arise from the redistribution and reallocation of audit functions to the implementation of more complex analytics. in some cases, remote auditing depends on the reengineering of the business processes themselves. it is unlikely that auditors will stimulate changes, but they must work with managers to cope with new data flows and evidence. the driving forces (and barriers) of remote auditing are not only technological in nature, but also extend to the behavioral sphere. these factors will determine the comfort level of auditors providing assurances based on evidence obtained and analyzed remotely, and potentially changing trust relationships between virtual audit groups and audited entities. american journal of business management, economics and banking volume 23 april 2024 p a g e | 217 www.americanjournal.org references 1. law of the republic of uzbekistan: “on auditing activity” of february 25, 2021 no. zru-677 2. alles, m. a. g. brennan, a. kogan and m. a. vasarhelyi. 2006. continuous monitoring of business process controls: a pilot implementation of a continuous auditing system at siemens. international journal of accounting information systems 7: 137-161. 3. armbrust, m. a. fox, r. griffith, a.d. joseph, r.h. katz, a. konwinski, g. lee, d.a. patterson, a. rabkin. 1. stoica, and m. zaharia. 2009. above the clouds: berkeley view of cloud computing. 4. bierstaker, j. l., p. burnaby and j. thibodeau 2001. the impact of information technology on the audit process: an assessment of the state of the art and implications for the future. journal of “managerial audit” 16: 159-164. 5. kogan and m.a. vasarhelyi, 2002. the feasibility and economics of continuous auditing. auditing: a journal of practice & theory 21: 125-138. 6. technical report no. ucb/eecs-2009-28, berkeley, california: university of california. berkeley. bedard, j. c. m. l. ettredge and c. m. johnston. 2007. the use of electronic audit documentation systems in audit practice: task analysis, training and resistance. advances in accounting behavioral research 10:29-53. american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 101 www.americanjournal.org legal status of inquiry bodies sharipov asror safar ugli samarkand state university named after sharaf rashidov law school level 2 student a b s t r a c t k e y w o r d s procuratorate "latin procurare-mano" to care in some countries, for example: france, sweden, germany, as state in states, inciting criminal cases, favoring prosecution, state in judicial proceedings as a special state body entrusted with the powers to protect interest’s tariff. [1] introduction the origins of the prosecution can be traced back to ancient civilizations. in ancient rome, the socalled "praetor" was a state employee whose, role criminal persecutions consisted of supervision and public order. similarly, the ancient persecution of crimes on behalf of the state in greek and babylonian societies there were officials responsible for. in ancient greece, too, the role of prosecutor the executor was a public official known as” eutinoy". old in rome, the roman republic initially”queestiones " for criminal proceedings relied on private citizens known as. [2] ancient egypt or legal systems in other ancient civilizations, such as mesopotamia, are religious and based on the laws of custom. these early legal systems are in criminal proceedings modern prosecutor's office, establishing the principle of expression of state interests he founded his organs. in the middle ages and early new age, procurators were called the crown or appeared as representatives of the monarch. their main task is to protect the law was to do and protect the interests of the state. procurators in feudal europe the role is closely related to the concept of royal justice, against the crown provided that the crimes committed were brought to justice in the appropriate manner. legal grounds and procedures that determine the future of the prosecutor's office during this period developed. in addition to the napoleonic code in continental europe he had a great influence on the development of the prosecutor's office. unlike continental europe, common law, law systems (common law), including specific in the prosecution authorities in the united states and the united kingdom developed features. [3] it originally occurred in france in the 13th and 14th centuries. in several countries all citizens to the prosecutor's office in the united kingdom, germany, switzerland,over the clear and uniform implementation of laws by organizations and officials career holders tasked with supervising were formed.above in countries, the prosecutor's office is a component of the court, while in others it is organizationally separated from it. [4] american journal of business management, economics and banking volume 22 march 2024 p a g e | 102 www.americanjournal.org at the same time, the historical bodies of the prosecutor's office of the republic of uzbekistan before we dwell on the legal basis, the origin of the prosecutor's office bodies let's dwell on its history. the prosecutor's office refers to constitutional laws established by the state an organ that is dissatisfied with compliance is written.inciting criminal cases,powers to defend the interests of the state in court proceedings, in favor of the accusation a special state body is allocated. "making a law is half of the work, only. it is darcor to achieve their full implementation of life. of this the implementation of the laws adopted for our daily routine it is necessary to create an impressive mechanism that provides" [5] honored with these thoughts the first president explained about the role of the prosecutor's office in society passed.employees of the prosecutor's office implement the developed laws the role in the maturation of kata is not exaggerated. initially on january 8, 1992, the" on the establishment" pf-313 was adopted and put into execution. [6] in accordance with this law, the prosecutor general of the republic of uzbekistan and his subordinate prosecutors are clear and clear of the laws on the territory of the republic of uzbekistan they exercise control over uniform execution [7] defined as.therefore, the prosecutor's office has over the operation of laws in the country it is the body that conducts control. at this point, it is worth noting that the system of the prosecutor's office the following: prosecutor general's office of the republic of uzbekistan;prosecutor's office of the republic of karakalpakstan; regions and tashkent city prosecutors 'offices; district and city prosecutors' offices; provincial prosecutors ' offices equivalent military prosecutor's office of the republic of uzbekistan; uzbekistan the republic is divided into transport prosecutors.[8] according to the legislation, the prosecutor general in our country and his first his successor is appointed by the president of the republic and removes from office. the prosecutor general of the republic of uzbekistan is the same person as the two holding the post of attorney general of the republic of uzbekistan for more than a term can not. [9] this article cites the term of appointment of prosecutors according to it mentioned prosecutors are appointed for a period of five years, this article is published in the world if we compare with the laws of their country, for example; head in the republic of turkey the term of office of the prosecutor is governed by the constitution and related laws is defined. usually appointed for a period of 4 years. at the end of his term of office, he was may be reappointed or appointed to another position. of the attorney general independence and impartiality are protected throughout his term of office. [10] apparently, the prosecutor general of the republic of turkey told the prosecutors of our country appointed for a relatively short period of one year.heydar aliyev for information on july 17, 1998, the council of ministers of the people's republic of azerbaijan on july 1, 1918-according to the decision of october, the prosecutor's office of the republic of azerbaijan dated october 1 of each year it was decided to celebrate as a professional holiday of its employees. encore one foreign country developed world country in france: national attorney general by decision of the council of ministers, at the invitation of the supreme council of judges,not renewable for a period of seven years from among state prosecutors and judges appointed for the term. his appointment was given at each parliamentary assembly advance by majority vote of three-fifths of votes must be approved. [11] article 145 of the general committee of the republic of uzbekistan besides other public bodies, the bodies of the prosecutor's office have their own powers independent of organizations, officials, only uzbekistan carries out subject to the constitution and laws of the republic the fact that the rule is strengthened is proof of our word. [12] american journal of business management, economics and banking volume 22 march 2024 p a g e | 103 www.americanjournal.org at the same time, it should be noted that during the period of powers of the prosecutor's office to political parties and other public associations pursuing political goals they suspend the membership of the organization of these bodies, their the powers and procedure for functioning are established by law. [13] in the process of analyzing the experience of developed countries, the following points it is advisable to take steps. in particular, the united states of america on the basis of the structure of the activities of the prosecutor's office, professor angela.j.davies he insists on the following. prosecutors are the most powerful in the american criminal justice system are officials. the decisions they make, the charge and the court decisions control the operation of the system and are often criminal determines the results of the work in advance. employees of the prosecutor's office in the new constitution of uzbekistan the fact that the issues of duties, service process and responsibility are clearly defined separate insistence is appropriate in khaki.another important issue is the article 146 of our constitution of uzbekistan operationalsearch, investigation of the fight against crime on the territory of the republic and private organizations that independently perform other special tasks,formation of public associations and their units and their activities the ban on the demonstration was controlled by the state. new, investigation and inquiry, operational-search authorities, privatization not allowed. however, to establish private investigative firms in the us state is allowed. [15] also a private investigator is an individual, agency, or by a corporation, another person, business entity, group of people or even a person hired to collect information about the location it is obtained. the investigator's activities contradict local legislation and state law ensuring that there is no unreasonable impact on the subjects of the possible investigation to comply with certain rules and regulations by investigative experts must. in place of the conclusion, it is worth saying that the prosecutor's office bodies in our country control is exercised over the enforcement and strict enforcement of the laws.about this is shown in detail in our overview. in addition in the"law on the prosecutor's office" also serve the employees of the prosecutor's office duties, ensuring the rule of law as obligations, legality strengthening the rights and freedoms of citizens, society and the state interests protected by law, constitutional of the republic of uzbekistan from the protection of the system, prevention and prevention of violations to, that is specified. references: 1. national encyclopedia of uzbekistan (2000-2005). https://uz.wikipedia.org/wiki/prokuratura 2. bahadirov is the son of mohammad umedjan. the origins of the prosecution authorities features of the history and legal framework http://www.newjournal.org/ 3. bahadirov is the son of mohammad umedjan. http://www.newjournal.org/ 4. national encyclopedia of uzbekistan (2000-2005). https://uz.wikipedia.org/wiki/prokuratura 5. i.a. karimov. jeeps of our people — a guarantee of peace ,progress. (first call lecture at the twelfth session of the oliv majlis of the republic of uzbekistan , 1998august 28 of the year.) t ., "0'zbekiston", 1998, p.7. 6. 09.12.1992 of the republic of uzbekistan. 746-xii. law 7. law of the republic of uzbekistan, no. 257-ii of 29.08.2001 8. national database of legislative data, 01.05.2023., 03/23/837/0241-so http://www.newjournal.org/ american journal of business management, economics and banking volume 22 march 2024 p a g e | 104 www.americanjournal.org 9. duties of the turkish prosecutor. https://jawoo.com/cumhuriyet-bassavcisi-nerede 10.https://www.senat.fr/leg/ppl20-388.html 11.m.m. inagamova. m.e.fahriddinov. constitution-pillar of human dignity and justice / "constitution of the republic of uzbekistan-glorification of human dignity, free and prosperous scientific practical confirmation on the topic" guarantee of our lives". tashkent. republican scientific and practical conference. december 1 https://tstu.uz/. tashkent state transport university-the constitution of the republic of uzbekistan is the glorification of human dignity, the guarantee of our free and prosperous life. volume 3 | tstu conference 2 / 2022. 324-329 p. 12.national database of legislative data, 01.05.2023., 03/23/837/0241 13.angela, j.davis, "authority and discretion of the american attorney" https://journals.openedition.org/droitcultures/1580?lang=en 14.use of a private investigative service. edited by regina strait, esq. https://www.peopleslaw.org/using-private-investigation-service 15.what a private investigator can and cannot do. https://privin.net/what-can-a-private-investigatordo-and-not-do/. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 164 www.americanjournal.org the role of corporate finance in increasing the investment potential of commercial banks jo‘rayev o‘ktam panji o‘g‘li teacher, department of “bank accounting and auditing”, tashkent institute of finance, tashkent city, uzbekistan. e-mail: legend007@inbox.ru a b s t r a c t k e y w o r d s this article describes the cooperative form of finance, what it is, how it works, as well as the activities of the cooperative. n this article, the theoretical foundations of corporate finance, interrelated sciences in researching the field, the history of its development, the opinions of foreign and domestic scientists on corporate finance, the relevance of introducing corporate finance as a science, the functions, goals and tasks of this science are reflected. bank, investment, corporate finance, economic theory, accounting and auditing, economic analysis, financial management, vat, gni, money, capital flows, financial markets, financial assets, financial institutions. introduction cooperative financing is a relatively independent branch of the financial system, covering a wide range of monetary relations associated with the formation and use of funds in the process of capital, income and circulation of funds of organizations, and is expressed in the form of various monetary funds. flows it is in this area that the main part of the financial resources of economic entities is formed, they serve as the main source of economic growth and social development of society. corporate finance is also an independent scientific area that was formed relatively recently, in the early 1950s. “corporate finance” is a synthetic science based on the achievements of scientific and academic disciplines such as “economic theory”, “accounting and audit”, “economic analysis” and others, financial solutions in various business areas. if the general course “finance” traditionally deals with the most general theoretical issues related to the field of finance of business entities, then a more detailed study of their practical aspects is defined in the courses of special disciplines “corporate finance” and “financial management”. 2. literature review it examines the role of banking capital in the conduct of monetary policy in india in the period after the global financial crisis, based on the theories of foreign scholars. empirical results show that banks with a high ratio of capital to risk-weighted assets (crar) attract funds at a lower cost. in addition, banks with high crars transmit monetary policy impulses smoothly, while stressed assets in the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 165 www.americanjournal.org banking sector hinder transmission. recapitalization to increase crar can improve transmission; however, crar may not help for banks above a certain threshold level due to reduced sensitivity of loan growth to the monetary policy rate. therefore, it is stated that the monetary policy can affect the credit supply depending on the capital situation of the banks (muduli s., behera h., 2023) [3]. most importantly, bank capital is an important evidence that policy uncertainty can improve the impact of bank economic performance and performance. in general, bank capital adequacy can reduce the negative impact of policy uncertainty on the banking industry through stabilization measures (mendy l. l., yang s. y., shi w. z., 2023) [4]. economist frank hunt writes, “the capitalization rate can be determined by dividing annual net operating income by the cost of a piece of property. this formula is important for determining the return on investment that an investor can hope to realize. as the level of capitalization increases, the decrease in the appreciation of the asset. marking has been argued to be inversely related to the price/earnings multiple for the same asset (frank hunt, 2021) [5]. according to local scientists o.i.lavrushin, u.o.azizov, t.m.karaliyev, "the resources of credit organizations are the sum of their own and borrowed resources at the bank's disposal, which are used in the implementation of asset operations. bank resources are reflected in the passive part of the balance sheet of credit organizations" (lavrushin o.i., azizov u.o'., karaliyev t.m, 2019). in our opinion, it is appropriate to provide a broader explanation of the composition of funds equaled to own funds by our above scholars in their views on the bank's resource base [6]. according to one of our local scientists, professor sh. z. abdullaeva, "the resource base of commercial banks determines the level of their credit potential. the resource base created by the bank can be directed to provide various loans and finance investments and other asset operations" (abdullayeva sh.z., 2019) [7]. professor a.a. in his research, omonov stated that "resources of commercial banks are the financial value formed due to the attraction of free funds in the economy and the formation of private funds (capital) under certain conditions" (omonov a.a., 2008). emphasizes [8]. u.d. artykov "bank resources are a set of reserves and opportunities that can be used for the implementation of banking activities within the framework of the bank's policy, consisting of the bank's own funds and borrowed funds, which are the basis for the bank's income" (ortikov u.d., 2008) considers it as of course, while supporting the definition given by the authors, we think that special attention should be paid to the bank's resource base [9]. at the same time, a number of foreign economists, including k. bainke, y. vasilishen, a. gryaznova, y. dolan, v. kolesnikov, j. matuk, g. panova, have discussed the issues of attracting financial resources and increasing the level of capitalization of commercial banks. it was reflected in the scientific research of d. sinke. special aspects of this issue are reflected in the scientific works of uzbek economists y. abdullaev, a. kamolov, i. toymukhamedov, o. rashidov, o. olimjonov, a. kadyrov [10]. 3. analysis and discussion of results having studied part i of this textbook, you already know the general definition of finance and their functions, signs that these relationships can be classified as finance. here we will focus on the specifics of corporate finance as a relatively independent financial sector [1]. the content of an enterprise’s finances can be understood, first of all, taking into account the american journal of business management, economics and banking volume 20 january, 2024 p a g e | 166 www.americanjournal.org formation and use of the entire complex of income and cash in the process of distribution and redistribution of gdp. in the process of reproduction, all incomes of subjects of economic relations are divided into primary and secondary, received after the redistribution of primary incomes [2]. figure 1. components of corporate finance [3] let’s analyze the financial side of distribution at the organizational level. revenue from the sale of goods and services (sales revenue) represents the profit from the sale of products, which is the main element of gross profit, excluding vat and excises, excluding variable and fixed costs included in the cost of sales. it is commercial and administrative. minus costs, they make a profit on the sale. after adjusting for other income and expenses, profit before tax is formed. we will receive a net profit after paying income tax. in a command economy, the distribution of gdp and national income is strictly regulated by the state. this led to a wide range of financial relations of enterprises at the stage of primary distribution of the gross domestic product, which made it possible to implicitly include their finances in the general system of public finances (90% of enterprises belonged to the state) [4]. in modern conditions in russia, the activities of organizations are not regulated much. thus, the state today regulates the creation and distribution of the value of gdp within a given organization: the composition of deductions that reduce the taxable base; the amount of certain tax credits for calculating taxable income (travel, entertainment expenses, advertising expenses, interest payments on borrowed funds): ❖ rates of contributions to social funds; ❖ methods of applying depreciation charges for the useful life of fixed assets, intangible assets, as well as depreciable fixed assets and intangible assets for the purposes of calculating taxable profit; ❖ objects and rates of taxation; american journal of business management, economics and banking volume 20 january, 2024 p a g e | 167 www.americanjournal.org ❖ conditions and procedure for writing off the obligations of the organization from the balance sheet; ❖ the composition of non-operating expenses taken into account when calculating taxable profit. a corporation is a property complex created to carry out entrepreneurial activities, and its economic goal is to meet social needs, make a profit and ensure financial stability in a market economy. the economic activity of organizations includes the production and sale of products, the performance of work and the provision of services, operations in the stock market. an economic entity may carry out one or more types of activities at the same time. in the process of economic activity, corporations have economic relations with their counterparties: suppliers and buyers, partners in joint activities, associations and associations, financial and credit systems, etc. relationships arise. the process of production and sale of products, the performance of work and the provision of services, the formation of financial resources and the implementation of investment activities. the entire set of financial relations of corporations with other participants in economic activity, depending on their economic content, can be grouped according to the purpose of these relations and divided into the following groups [5]: between the founders when creating an organization on the formation of the authorized (share) capital. specific ways of its formation depend on the organizational and legal form of the organization. but in all cases, own capital is the initial source of formation of a certain part of current and working capital; between corporations formed in the process of production and sale of products in the main line of business. in particular, financial relations between suppliers and buyers of raw materials, materials, finished products, etc., relations with transport organizations, communications enterprises, customs, foreign firms, etc. are included. when transporting goods. these relations are fundamental in the economic activity of any corporation, since the final financial result of its activities largely depends on their effective organization; between corporations not related to the main activity, but capable of having a significant impact on the financial condition of economic entities. for example, the sale and lease of property, factors that determine exchange rate differences in foreign exchange transactions, the timing of financial investments, etc.; between the corporation and its subdivisions: subsidiaries, branches, workshops, departments, teams for financing expenses, distribution and redistribution of profits, formation of working capital and other funds. this group of relations influences the organization and rhythm of the production process; between the corporation and its employees on the distribution and use of income, the issuance and placement of shares and bonds of this corporation, the payment of interest on dividends on bonds and shares, the collection of fines and compensation for material damage; withholding taxes from individuals, etc. the financial relations of this group affect the efficiency of the use of labor resources; between the corporation and the financial system of the state. these relations arise when paying taxes and other obligatory payments to the budget, forming off-budget funds, providing tax benefits, applying fines from the state for violating the current legislation, receiving subsidies, subsidies, etc. from the budget between the corporation and the banking system. they arise in the process of keeping american journal of business management, economics and banking volume 20 january, 2024 p a g e | 168 www.americanjournal.org money in commercial banks, obtaining and repaying loans, paying interest on loans, buying and selling foreign currency, and providing other banking services; between the corporation and insurance companies and organizations. these relations arise in connection with compulsory and voluntary insurance of property, certain categories of employees, commercial and economic risks; between the corporation and investment institutions created in the process of investment placement, property privatization, etc.; table 1. key indicators of the world’s largest corporations as of may 2022 [6] n. biggest companies location state major shareholder price per share stock exchange capitalization 1. tesla usa, california 1. elon musk (15%,); 2. the vanguard group, inc. (5.98%). 658,80 usd nasdaq $864.7 billion 2. apple usa, california 1. the vanguard group, inc. (7.39%,) 2. berkshire hathaway, inc. (5.46%) 140,52 usd nasdaq $2.6 trillion 3. amazon usa, washington 1. jeff bezos (9.8%,); 2. the vanguard group, inc. 6.3%. 2 135,50 usd nasdaq $1.5 trillion 4. alibaba group china, hangzhou 1. dst managers ltd. (0.90%); 2. oppenheimerfunds, inc. (0.72)%. 81,10 usd new york stock exchange (nyse) $1.7 trillion 5. saudi arabian oil saudi arabia, dhahran 1. government of saudi arabia (94%); 2. public investment fund (investment company) (4.00%). 10,82 usd tadawul (saudi stock exchange) $2.4 trillion 6. microsoft usa, redmond 1. vanguard group, inc. (8.31%); 2. blackrock. (7%); 3. state street corporation (4.01%). 262,52 usd nasdaq $2.1 trillion 7. berkshire hathaway usa, omaha 1. bill gates (50,3%); 2. warren buffett owned about (18%); 3. the vanguard group, inc. (10.02%). 462 890,00 usd new york stock exchange (nyse) $723.5 billion 8. bmw (bayerische motoren werke) germany, munich 1. public float (50%); 2. stefan quandt (29%). 84,41 usd luxembourg stock exchange $51.71 billion https://www.marketscreener.com/business-leaders/elon-musk-1364/biography/ https://www.marketscreener.com/business-leaders/jeff-bezos-211/biography/ https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/articles/investing/032515/saudi-stock-exchange.asp https://www.investopedia.com/articles/investing/032515/saudi-stock-exchange.asp https://www.investopedia.com/articles/investing/032515/saudi-stock-exchange.asp https://www.investopedia.com/articles/investing/032515/saudi-stock-exchange.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.investopedia.com/terms/n/nyse.asp https://www.bourse.lu/issuer/bmw/25109#%3a~%3atext%3dbmw%20%2d%20luxembourg%20stock%20exchange https://www.bourse.lu/issuer/bmw/25109#%3a~%3atext%3dbmw%20%2d%20luxembourg%20stock%20exchange https://www.bourse.lu/issuer/bmw/25109#%3a~%3atext%3dbmw%20%2d%20luxembourg%20stock%20exchange american journal of business management, economics and banking volume 20 january, 2024 p a g e | 169 www.americanjournal.org according to the table above, the company with the highest capitalization is apple, which currently has a total capital of $ 2.6 trillion. next in line is saudi arabian oil, which has a combined annual capital of $ 2.4 trillion. third, the figure is directly attributable to microsoft, which has a combined market capitalization of $ 1.7 trillion. turning to other metrics, berkshire hathaway is now ahead of the company in terms of value per share, with the company’s share price in the real market at $ 462,890.00. in the table above, we can see that most of the large corporations operate in the united states. this is a sign of a huge investment in the american economy. as a result of our observations, we have learned that investments in the stock market can yield significant returns, and to manage your investment risks wisely, diversify your investment portfolio. there are several organizational principles that are interconnected with the main tasks and goals of the business. figure 2. below are the basic principles of organizing corporate finance [7] let’s take a closer look at each principle. let us immediately emphasize that these reserves must be constantly increased. this is necessary, first of all, to ensure the normal operation of the enterprise in cases where market conditions have changed or liability for non-fulfillment of direct obligations to counterparties has increased. the principle of these finances is very simple. according to him, all funds allocated for the development of the enterprise are covered not only by net profit, but also by depreciation. the main task of these funds is to ensure the minimum normative economic efficiency of the capital owned by the enterprise. 4. conclusions and suggestions if there is self-sufficiency, then the corporation finances the production process from its own funds and regularly pays taxes to the state budget. to implement this principle, it is necessary that each department of the enterprise work with a profit and cover all debts. self-financing, in comparison with the previous principle, implies not only purposeful activity, but also not simple, but expanded production, as well as capital accumulation on a commercial basis, which ensures the benefit of the budget system. taking into account the principle, the financial responsibility of the enterprise for failure to fulfill previously agreed obligations, as well as the requirements for financial discipline, have been strengthened [10]. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 170 www.americanjournal.org even in the case of paying fines for breach of contract or paying damages to other partner enterprises, the corporation is obliged to fulfill its obligations to sell products (services) without the prior consent of consumers [11]. to implement the principle of self-financing, the following conditions must be met: classification of sources of working capital formation sources of working capital formation, as mentioned above, should be divided into credit and own funds. this is due to the peculiarities of the organization and technology of the production process in each specific field of activity [12]. reference: 1. mirziyoev sh.m. address of the president of the republic of uzbekistan to the oliy majlis and the people of uzbekistan. january 24, 2020. www.lex.uz 2. decree of the president of the republic of uzbekistan dated may 12, 2020 no. pf-5992 "on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025" 3. decree of the president of the republic of uzbekistan dated february 7, 2017 no. pf-4947. on the strategy of actions for further development of the republic of uzbekistan//collection of legal documents of the republic of uzbekistan. tashkent, 2017. no. 6 (766). p. 32 4. decree of the president of the republic of uzbekistan no. pf-5992 of may 12, 2020 "on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025" 5. roadmap for the implementation of the development strategy of new uzbekistan for 2022-2026 in 2022 6. khoshimov j. overseas experience in the development of the life insurance industry //молодые ученые. – 2023. – т. 1. – №. 20. – с. 65-69. 7. aktamov b. baholash faoliyatini raqamlashtirish istiqbollari //yashil iqtisodiyot va taraqqiyot. – 2023. – т. 1. – №. 10. – с. 248-252. 8. abdullaevich n. i. mechanisms and economic necessity of attracting direct foreign investment //genius repository. – 2023. – т. 24. – с. 60-65. 9. khoshimov j. legal measures to increase the attractiveness of the territory's investment environment //models and methods in modern science. – 2023. – т. 2. – №. 13. – с. 54-60. 10. ганиев ш. инновационные основы бухгалтерского учета в бюджетных организациях //экономика и образование. – 2020. – т. 1. – №. 4. – с. 101-105. 11. abdullaevich n. i. the importance of the investment climate in the inflow of foreign direct investment into the country //american journal of business management, economics and banking. – 2023. – т. 16. – с. 260-266. 12. ғаниев ш. в., маматов б. с. тадбиркорлик фаолиятини ривожлантиришда инфратузилманинг аҳамияти //oriental renaissance: innovative, educational, natural and social sciences. – 2023. – т. 3. – №. 8. – с. 180-195. 13. bobirjon a., bobur o. investment analysis and risk prevention mechanisms //the peerian journal. – 2023. – т. 25. – с. 31-40. 14. saparov a. d., ganiev s. v. issues of formation of uzbek economic terminology //academia science repository. – 2023. – т. 4. – №. 7. – с. 108-110. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 171 www.americanjournal.org 15. aktamov b. baholash faoliyatini davlat tomonidan tartibga solishning milliy va xorij amaliyotlari xususiyatlari: https://doi. org/10.55439/eced/vol23_iss3/a34 //iqtisodiyot va taʼlim. – 2022. – т. 23. – №. 3. – с. 228-233. 16. giyozovich k. i., vokhidovich g. s. issues of tourism development in uzbekistan //the peerian journal. – 2024. – т. 26. – с. 7-12. 17. azizov u., ataniyazov j. reforming the global financial architecture and international financial system in the context of globalization //international finance and accounting. – 2019. – т. 2019. – №. 5. – с. 1. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 64 www.americanjournal.org the basis of strategic management of the innovative development of the service field aspects tukhliyev bakhtiyot makhmaziyaevich assistant, department of human resources management, samarkand state university named after sharof rashidov a b s t r a c t k e y w o r d s the article deals with approaches to innovative development strategic management of the service sector at the state level. it also considers the innovation activity features in organizations of various sectoral subsystems services. innovation, innovation process, innovative design, innovative project, innovative development, service organizations, innovation strategic management. introduction service enterprises and industries is important in the innovative development of the economy. by introducing innovations and new technologies, it is possible to increase the efficiency of the service sector , ensure economic stability and competitiveness. at the same time, this process plays an important role in diversifying the economy, creating new jobs and increasing social welfare. in the innovative development of the service sector, the main goals are to increase the contribution of the service sector to the gross domestic product, to increase the level of employment by creating new jobs, and to ensure social stability. forming competitive enterprises and networks in the service sector, improving the quality of service through digital technologies and innovative solutions, and ensuring global development of the service sector through foreign investments and international cooperation. through strategic management of service enterprises and industries in the country, a number of urgent issues need to be solved in the way of innovative development of the economy, first of all, the creation of sufficient infrastructure in the service sector, the training of highly qualified specialists in the service sector, and the financing of innovative projects and programs. is to create a favorable legal environment for attracting investments and developing the service sector. the innovative development of enterprises in the service sector should be considered as a set of changes of business entities, these changes are directed to the development of innovations that increase the efficiency of business practices or to the final result in the form of improved service that meets the needs of customers. scientific research in the field of management shows the need to use a situational approach that takes into account retrospective trends, the current situation and the main parameters of the management object and its external environmental factors in the process of managing complex socio-economic systems . american journal of business management, economics and banking volume 30 november 2024 p a g e | 65 www.americanjournal.org services differ from goods in a number of important aspects, and these differences often create difficulties in the development of innovative initiatives. when planning innovative activities at any level in the service sector, the following four main characteristics must be taken into account, which affect the management of innovation in service organizations: intangibility, creation and provision of the service occur simultaneously existence, variability and non-conservation1. this means that the service cannot be tried before purchase (as in the case of tangible goods), it is produced and consumed simultaneously, the quality can vary within the same type of service, and the service cannot be preserved. service sector is still not sufficiently studied. first of all, it depends on the intangible nature of the products of economic entities in the service sector. almost all service products involve close interaction with customers. as a result, service providers will need to design customer interactions in addition to developing intangible products. thus, innovation in the field of service delivery can be related not only to the content of the service, but also to the methods of its presentation and promotion. that is, in addition to "what" is being offered, “how” is being offered is also important. in addition, service delivery processes mainly refer to innovation in processes, not objects. thus, managing innovation activities in the service sector can be a more complex task than in the material production sector. it should be noted that one of the important problems faced by organizations in the service sector is the lack of tradition of innovation. for example, in the field of financial services, organizations often have a conservative management style in which there is no room for innovation 2. organizations operating in this field do not focus on innovation, emphasizing the control of risks, procedures and processes to increase efficiency. however, the situation is changing in the modern world, as today's leading banking companies recognize the need to be more innovative. because of the problems in innovation management, organizations in the service sector need a special innovation strategy focused on innovative activities. to achieve this goal, they need to develop appropriate competencies and necessary organizational structures, and support creativity that brings innovation. it should be noted that now large international companies are actively moving in this direction. the process of forming and implementing innovative strategies in the service sector is very complex, this sector is an important element of the world economic system, the main mechanism for national economies, and counterparties (stock exchanges, banks, telecommunications, transport routes, development projects, lobby activities, consulting, etc.) provides direct and indirect interactions between. at the same time, the activities of organizations in the service sector are of social importance and are expressed in infrastructure and engineering relations, communication, state and municipal services, trade, etc., and affect the political stability of the state (house communal services, mass media, etc.). the main problem of strategic management of the innovative development of the service industry at the regional (state) level lies in the process of setting goals, because the service industry is a multisectoral system consisting of various economic entities, each of which has its own current has a view 1evmenov a. d., bulochnikov p. a., blagova i. yu. strategic planning of innovative development of spheres of service // journal of law and economic research. spb., 2013. no. 4. 2aruna shekar an innovative model of service development: a process guide for service managers the innovation journal: the public sector innovation journal, volume 12(1), 2007, article 4. american journal of business management, economics and banking volume 30 november 2024 p a g e | 66 www.americanjournal.org of the situation and defines specific target directions for development 3[6]. nevertheless, taking into account that all entities that provide services to legal entities and individuals have similar characteristics, it is possible to set a single goal that meets the needs of society to provide high-quality services with minimal time differences between demand and implementation. which meets the expectations of consumers. it follows from the above considerations that within the framework of the main strategy for the development of the service industry, the primary element is an innovative functional strategy that defines the directions for improving organizational processes and the main production funds and intangible assets related to them. the purpose of these strategic plans is to economically manage all types of resources (financial, labor, time) and to achieve economic efficiency through the introduction of means of production. one of the ways to implement this strategy may be the development and implementation of service process automation tools. it should be noted that such measures are currently being implemented in some competitive service sectors (telecommunications, banks, stock exchanges). at the same time, the private investment strategy should reveal the sources and forms of financing innovative activities, activities aimed at introducing innovative results into the service process, and ultimately determine the necessary level of economic efficiency of investments. the exact content of the measures for the formation and implementation of the system of basic and functional strategies should be based on the characteristics of the management object and the activity of its elements. the author pays special attention to the introduction of knowledge management processes and ensuring their activities among the main features of strategic management of innovative development of enterprises in the service sector. innovation management requires the organization to work effectively in the following five knowledgebased areas: innovation strategy; support of creative innovative initiatives; forming a portfolio of innovations; implementation of the most effective innovations; human resource management. at the same time, the main task for individual organizations in the service sector and sectoral components of the service sector under state control is to determine how this model can be used for their innovative development. we consider the content of the first element of the proposed model (innovation strategy), the management of service sector organizations (legislative and executive authorities) should develop an innovation strategy based on the primary role of innovation in the development of the company (or industry). it defines how to use technologies and manage efficiency improvement, as well as the use of relevant efficiency indicators. the second element of the model is the generation of creative and innovative management ideas. this element is of great importance for innovative development and requires the creation of conditions within the organization that encourage the formation of ideas related to all aspects of the company's activities, especially customer requirements. all employees should be in close contact with customers and receive their feedback; rationalization and innovative proposals should be encouraged materially and non-materially. 3evmenov a. d., smirnov a. yu., bulochnikov p. a. upravlenie investitsionnym klimatom regiona: monograph. spb.: izd. spbgukit, 2011. american journal of business management, economics and banking volume 30 november 2024 p a g e | 67 www.americanjournal.org considering the essence of the third element of the model (innovation portfolio management) , it should be noted that after innovative ideas have been collected and found to be effective, it is necessary to select the best ideas for implementation, taking into account resources and efficiency. . also, based on knowledge management models at the state level, it is desirable to apply the practice of spreading effective innovative solutions in the field. fourth element of the model is innovation implementation. the ability to quickly turn ideas into new products (or services) is critical. forward-thinking organizations in the service industry manage the creation of a new service in a similar way to the process of creating a new product in industry. human resource management is the final element of the innovation management model in the company. underlying all innovation management efforts is the need to create conditions that encourage employees to contribute to innovation. leading manufacturing companies recognize that it is not enough to excel in just one of the above areas; for example, in the five wrestling sports, achieving high performance in all areas is more important than high performance in one area. can be used as a diagnostic base to determine in which five areas the company should implement initiatives to improve its innovative activities. the service sector can be: creation of new customer-oriented opportunities; improving existing products, services and processes. thus, according to the author's opinion, the main characteristics of strategic management in the innovative development of enterprises in the service sector are related to the specific characteristics of this type of organization and its environment. information (knowledge management), organizational (existence of network business structures), resource (human resources management) and innovative aspects are considered to be of particular importance in this: – of uzbekistan define the main directions of innovative development and strive to develop the innovative activities of service enterprises and industries; – service sector is of great importance in the economy and plays an important role in the introduction of innovations in various branches and sectors; – by improving the mechanisms of introducing innovations, it is possible to develop the innovative activities of service enterprises and industries faster; – support of innovative activity by the state and implementation of additional measures will help to speed up the innovative development of service enterprises and industries; – scientific and educational organizations play an important role in the creation and implementation of innovative projects and technologies. references 1. evmenov a. d., bulochnikov p. a., blagova i. yu. strategic planning of innovative development of spheres of service // jurnal of law and economic research. spb., 2013. no. 4. 2. aruna shekar an innovative model of service development: a process guide for service managers the innovation journal: the public sector innovation journal, volume 12(1), 2007, article 4. 3. evmenov a. d., smirnov a. yu., bulochnikov p. a. upravlenie investitsionnym klimatom regiona: monograph. spb.: izd. spbgukit, 2011. 4. bulochnikov p. a. investitsionnaya politika gosudarstva i mechanizm ee realizatsii // vestnik instituta ekonomiki i upravleniya sankt-peterburgskogo gosudarstvennogo universiteta kino i televetsenia. spbgukit. 2010. vyp. 2 (29). american journal of business management, economics and banking volume 30 november 2024 p a g e | 68 www.americanjournal.org 5. alam i. 2002. "an exploratory investigation of user involvement in new service development", journal of the academy of marketing science, 30 (3), 250–261. 6. kelly, d. and storey, c. 2000. new service development: initiation strategies , international journal of service industry management, 11 (1), 45–62. american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 104 www.americanjournal.org ethics and pr: research on the ethical aspects of using pr for commercial and public purposes алимова гузалой алишер кизи студентка, университет журналистики и массовых коммуникаций, по направлению «информационная служба и связи с общественностью» a b s t r a c t k e y w o r d s the article examines the ethical side of pr as a tool for promoting goods and services, as well as forming public opinion. the author explores the basic principles of ethics in pr, such as honesty, transparency, respect for the audience and responsibility for one's actions. particular attention is paid to the analysis of examples of ethical problems arising when using pr in various contexts, including the manipulation of information, violation of confidentiality and unethical promotion. the author also analyzes the impact of ethical principles on the effectiveness of pr and offers recommendations for observing ethical standards in pr. the study is of interest to specialists in the field of pr, marketing and advertising, as well as to anyone interested in the ethical aspects of communication and promotion. pr, ethics, promotion, commercial goals, public goals, honesty, transparency. introduction in the modern world, pr is an important tool for promoting goods and services, as well as shaping public opinion. however, the use of pr can raise ethical issues related to honesty, objectivity, and respect for the audience. in this study, we will look at the ethical aspects of using pr for commercial and public purposes. we assume that compliance with ethical principles in pr can have a positive impact on its effectiveness. to confirm this hypothesis, we will analyze scientific literature and publications on the topic of pr ethics, study examples of the use of pr from the point of view of ethical principles. ethical principles in pr are based on the following basic provisions: • honesty and transparency. pr should provide reliable information about the product or service, as well as the company that offers it. • respect for the audience. pr should take into account the interests and needs of the audience, as well as its right to freedom of choice. • responsibility for your actions. pr specialists must be aware of the consequences of their actions and be responsible for them. american journal of business management, economics and banking volume 25 june 2024 p a g e | 105 www.americanjournal.org • adherence to these principles will help avoid information manipulation, privacy violations, and unethical promotion. the purpose of the study is to analyze the ethical principles that must be observed when using pr, as well as to identify possible problems and contradictions related to the ethics of pr. methodology despite the fact that public relations was invented relatively recently and gained worldwide popularity less than 100 years ago, a huge number of studies have been done in this area, which in one way or another touched on the ethical aspects of using pr for commercial and public purposes. such studies include the works of the following authors: f. kitchen, public relations: principles and practice. the book examines the ethical aspects of pr, as well as issues of social responsibility and transparency in the work of pr specialists. a. d. krivonosov, o. g. filatova, m. shishkina, fundamentals of the theory of public relations. the book discusses the ethical norms and principles that pr specialists should observe in their work. i. alyoshina, public relations for managers. the book examines in detail the issues of ethics and social responsibility in pr. chumikov, a. n. "public relations and media communications". the book contains a section devoted to the ethical aspects of pr and their impact on the company's reputation. catlip s. m., center a. h., broome g. m. "public relations. theory and practice". the book also discusses the ethical issues of pr and their impact on a company's reputation. m. gundarin, the book of the head of the pr department. the book discusses the issues of professional ethics of a pr specialist, as well as the ethical aspects of working with clients and partners. v. kuznetsov, public relations. theory and technology". the book discusses the ethics of pr activities and its impact on the formation of public opinion. v. korolko, fundamentals of public relations. the book examines the ethical norms of pr and their role in the formation of the company's reputation. g. pocheptsov, public relations for professionals. the book discusses the issues of professional ethics of pr and its role in creating a positive image of the company. i. sinyaeva, public relations in commercial activity. the book examines the ethics of pr in the context of commercial relations and its impact on the company's reputation. m. shishkina, public relations in the system of social management. the book is devoted to a comprehensive consideration of the phenomenon of public relations (pr) in the system of social management. the author defines the ontological status of pr, the goals, subject, content, and result of public relations. the paper attempts to interpret pr institutionally, to highlight its social functions, mechanisms for including public relations in the regulation of certain spheres of society. s. black, public relations. what is it?" the book discusses the issues of professional ethics of a pr specialist, as well as the ethical aspects of working with clients and partners. these books are authoritative sources of information on the topic of "ethics in pr". they can be useful for studying the theoretical foundations of ethics in pr, as well as for understanding the practical aspects of the application of ethical standards in pr activities. american journal of business management, economics and banking volume 25 june 2024 p a g e | 106 www.americanjournal.org the following methods were selected for the study: analysis, induction, comparison. research and analysis in the modern world, when competition in the market is becoming more aggressive every day, pr technologies that resort to both ethical and unethical methods and tools are of great importance in promoting goods or services. someone uses them intentionally in order to get the attention of the audience through deception or misinformation, while others do not notice their mistakes, thereby not deliberately violating ethical standards. in one case or another, the pr specialist needs to analyze the company's status in the market to make sure what impact the use of ethical or unethical pr strategies has on the company. sam black, one of the founders of modern pr, defined it as the art and science of achieving harmony with the external environment through mutual understanding based on truth and full information. (sam black, 1989) in his opinion, pr involves establishing and maintaining communications with key audiences such as customers, employees, shareholders, the media and the public at large. however, some experts believe that this definition has already lost its relevance and has nothing to do with practice, although sam black remains one of the first to describe the theory of pr by a specialist. and the emergence of the practice of classical pr is usually attributed to 1902 and associated with the name of ivy lee, a native of georgia and a graduate of princeton university. ivy lee began his career as a reporter for the new york world. in 1904, he, together with the journalist j. parker founded an independent company, parker & lee. this event was a significant milestone in the history of pr development, as ivy lee became the first professional public relations consultant. in 1906, ivy lee published the "declaration of principles," which was the first moral code of the profession. reporter ivy lee was the first to establish the relationship between positive press coverage of a firm or politicians and their subsequent successes. (korolko v.g., 2000) scott m. cutlip wrote the book "public relations. theory and practice". and he gave the following definition of pr: "this is a management function that contributes to the establishment or maintenance of mutually beneficial relations between the organization and the public, on which its success or failure depends." (scott cutlip, 2016) in countries with a market economy, the use of pr in most cases does not violate ethical standards, unless we are talking about projects aimed at making a profit by deceiving consumers. (sinyaeva m, 2015) this is due to the fact that the market economy is based on commodity turnover: the manufacturer sells his goods on the market, making a profit. from these profits, he pays taxes and often creates new jobs. thus, the market is the basis of the state system, and most efforts are aimed at its development.1 in such conditions, the main task of companies in the market is to increase competitiveness and increase sales, and pr plays an important role in achieving these goals. if we refer to the classic pr used by ivy lee to improve the image of rockefeller, we can clearly see that pr in commerce is aimed primarily at obtaining benefits by establishing relationships with the audience. (kuznetsov f, 2009) american journalist isa tarbel published a series of articles entitled "the history of standard oil", which criticized the oil monopoly of j. rockefeller for corruption and dishonest business practices, as 1 "how a market economy works: principles, what the concept includes" ria novosti / electronic source: https://ria.ru/20220217/ekonomika-1773317937.html (accessed 02.05.2024) https://ria.ru/20220217/ekonomika-1773317937.html american journal of business management, economics and banking volume 25 june 2024 p a g e | 107 www.americanjournal.org well as for the unethical methods of competition used by the company.2 ivy lee showed j. rockefeller from the other side as an exemplary family man and a good man, which restored his reputation. thus, pr can be compared to another great invention of mankind dynamite. it can be used for good and creation, but if it falls into the wrong hands, it will be used for evil. the same applies to public relations, if it is used for its intended purpose, that is, to maintain a positive image, good communication and informing the public, it will play a big role in the development of the company, organization and even the country, but if pr promotes the consumption of tobacco, alcohol and drugs among the public as something useful or necessary, then it will naturally lead to the decline of a certain segment of the public. in today's world, even large companies often abuse the trust of the public, trying to increase their capital, thereby leaving thousands of people deceived. one of these scandals is associated with the automaker (volkswagen aktiengesellschaft), which owns 12 car brands around the world, the most famous among them are: volkswagen, porsche, audi, bentley, bugatti.3 in 2015, a scandal broke out around volkswagen diesel cars, related to the company's manipulation of software responsible for controlling emissions of harmful substances. this event was called the "diesel scandal" and became one of the most high-profile in the history of the automotive industry. the essence of the scandal was that volkswagen used special software that in normal conditions of car operation ensured compliance with environmental standards, and when tested on the bench, significantly underestimated the indicators of emissions of harmful substances. in this way, the company was able to get approval from environmental regulators and sell its cars as environmentally friendly. the scandal was uncovered as a result of an investigation by the us environmental protection agency. after that, volkswagen pleaded guilty and agreed to pay a fine of $4.3 billion. the volkswagen diesel scandal was a serious blow to the reputation of the company and the automotive industry as a whole. it has also led to stricter environmental standards and increased control over compliance with these standards by car manufacturers.4 a guilty plea, a fine and a recall of cars with manipulating software allowed volkswagen to avoid a complete loss of reputation. in the event that the company continued to uphold its integrity and hide the truth from the public, it would lead to even greater losses. thanks to the prompt work of pr specialists, the company managed to minimize losses, as well as improve its reputation after the news about the fraud ceased to be relevant to the media. transparency and honesty play a key role in business development, while information manipulation and misrepresentation can lead to scandals and reputational damage. (chumikov a., 2024) everything that was considered above concerns the commercial goals of using pr, they differ from public ones in that they are aimed at making a profit, while public ones are aimed at achieving any specific goals, such as: 2 "contribution to the formation of pr by s. black, a. lee, e. bernays, s. cutlip" analytical information and cognitive portal neuroplus.ru / electronic source: https://neuroplus.ru/sem-blek-chto-takoe-pr.html (accessed 02.05.2024) 3 "interpretation of the designation. car brands for 2024" infoshina / electronic source: https://infoshiny.ru/stati/chto-takoe(accessed 02.05.2024) 4 vw management apologized for the "diesel scandal" of deutsche welle / electronic source: https://www.dw.com/ru/ (accessed 02.05.2024) https://neuroplus.ru/sem-blek-chto-takoe-pr.html american journal of business management, economics and banking volume 25 june 2024 p a g e | 108 www.americanjournal.org • drawing attention to certain social problems. pr can be used to draw attention to problems such as poverty, unemployment, pollution, etc.5 • formation of public opinion on certain issues. pr can be used to shape public opinion on issues such as health care reform, climate change, etc. • support for charitable and social projects. pr can help draw attention to charitable and social projects, as well as raise funds for their implementation. • promotion of ideas and values. pr can be used to promote ideas and values, such as freedom, equality, justice, etc. in general, the public goals of pr are aimed at making the world a better place and contributing to the solution of social problems. one example of the use of pr for public purposes in uzbekistan is a campaign to raise awareness of the problem of air pollution. this campaign can include the following elements: creating informational materials such as brochures, posters, and videos that explain how changing air quality affects our lives and what we can do to reduce its effects. organising events such as lectures, seminars and conferences that provide information on changing air quality and its effects. cooperating with the media to ensure widespread coverage of the pollution problem and to draw public attention to the problem. supporting scientific research that examines change and its consequences. this campaign aims to raise public awareness of air pollution and encourage people to take action to reduce its effects. it can be organized by the government, non-governmental organizations or private companies.6 in addition, in uzbekistan, pr is implemented in all state organizations of the country, each structure of public administration has an information service subordinate to it, which performs the tasks specified in the resolution of the cabinet of ministers of the republic of uzbekistan, dated 15.02.2018 no 125 "on measures to further improve the activities of information services of state and economic management bodies of the republic of uzbekistan". all the tasks and functions specified in the resolution should ensure the transparency and openness of the work of government agencies, help to obtain information and services for the public, which in turn will increase the trust and loyalty of the audience to these structures. however, pr can be used by such structures during any crisis situations, so as not to undermine public confidence and not to cause a wave of indignation, the information service can resort to manipulating information, passing off false information as true, which in the end will not allow the public to find out the truth, which is a violation of ethical standards. for example, on april 1, 2024, the anti-corruption agency held the 2nd meeting of the commission for assessing the effectiveness and efficiency of the work carried out in the field of ensuring openness. 5 "what is" pr up business / electronic source: https://upinc.ru/blog/stati/pr-svyazi-s-obshchestvennostyu-prostymislovami/ (accessed 02.05.2024) 6 "what pollutes the air in tashkent and how to fix it. statement of the ministry of ecology" gazeta.uz / electronic source: https://www.gazeta.uz/ru/2024/01/12/air/ (accessed 02.05.2024) american journal of business management, economics and banking volume 25 june 2024 p a g e | 109 www.americanjournal.org the calculation of the "openness index" was carried out on the basis of 8 indicators consisting of 84 assessment criteria. performance indicators were divided into categories "green" category from 71 to 100 points, "yellow" category from 55 to 71 points, less than 55 points "red" category.7 the assessment included 103 ministries, departments and institutions, according to the results, 31 state bodies entered the "green" category (71-100 points), 43 organizations were assigned to the "yellow" category (55-71 points) and 29 state institutions were included in the "red" category (below 55 points). (see figure 1.) figure 1. "openness index 2023" all these data emphasize the importance of using pr to increase the openness of state and economic management bodies, because the well-being of the people depends on their decisions, and the people, in turn, being the main source of power, have every right to know about everything that happens within these structures. decisions should be made taking into account public opinion, that is, public relations will play the role of a bridge between the leadership of government bodies and the people. elections and other public votes also play an important role in a democratic society, which must be advertised and promoted to achieve social and political goals. for example, in 2023, during the elections for the post of president of the republic of uzbekistan, the turnout, according to official data, was the lowest since 2016 and amounted to only 79.88%. however, these figures are still higher than in more developed countries, so in the united states, as of the morning of november 4, 2020, 160 million people took part in the us presidential election, which is 66.9%. this is the highest turnout in the last 120 years. in 1900, the turnout reached 73.7%. 7 "according to the results of the "openness index", the agency of statistics under the president of the republic of uzbekistan has achieved the highest result" / electronic source: https://stat.uz/ru/press-tsentr/novosti-goskomstata/52474ochiqlik-indeksi-da-o-zbekiston-respublikasi-prezidenti-huzuridagi-statistika-agentligi-eng-yuqori-natijaga-erishdi-266 (accessed 02.05.2024) american journal of business management, economics and banking volume 25 june 2024 p a g e | 110 www.americanjournal.org this proves that the public agitation for political activism that the uzbek government has been conducting over the years actually influences public behavior. conclusion based on the study, a number of conclusions can be drawn about the ethical aspects of the use of pr for commercial and public purposes. in the commercial sphere, pr is used to increase profits, since the business is focused on generating income. in most cases, pr helps consumers learn about the history of the company, its products and the quality standards applied, which does not contradict ethical norms and benefits consumers. however, there are cases when pr is used to manipulate information and public opinion in order to sell low-quality goods, which leads to scandals and loss of reputation in the market. timely recognition of mistakes, taking responsibility and correcting them help to preserve the company's reputation in the market. if all these actions are aimed at satisfying the needs of consumers, then they also do not contradict ethical standards. in modern society, pr plays an important role in shaping public opinion and promoting various ideas and projects. however, the use of pr for public purposes can raise ethical questions and concerns. the proper use of pr for public purposes not only does not violate ethical standards, but also helps to draw public attention to various problems, such as environmental degradation, tree felling, a large number of construction sites that do not comply with safety standards, and much more. pr for public purposes is also aimed at achieving public awareness of the work of state structures, which allows the people to be the main source of power and play a key role in political decisions. however, everything has negative sides, pr is no exception. the use of pr to promote evil can lead to bad consequences, such as terrorism, alcoholism, fanaticism, etc. the use of pr that does not violate its basic concepts, such as honesty, openness, respect for the audience, does not violate ethical standards. references 1. "on measures to further improve the activities of information services of state and economic management bodies of the republic of uzbekistan" resolution of the cabinet of ministers of the republic of uzbekistan, dated 15.02.2018 no 125 2. i. alyoshina, public relations for managers. moscow: ikf : ekmos, 2004 3. s. black, public relations. what is it?" modino press publ., 1989, 240 p. 4. gundarin m.v. book of the head of the pr department. st. petersburg, piter publ., 2006. – 368 p. 5. catlip s. m., center a. h., broome g. m. "public relations. theory and practice". moscow [i dr.]: williams, 2016, 613 p. 6. v. korolko, fundamentals of public relations. wackler publishing house, 2000 7. a. d. krivonosov, o. g. filatova, m. shishkina, fundamentals of the theory of public relations. textbook, publisher: st. petersburg: piter, 2012, 384 p. 8. v. kuznetsov, public relations. theory and technology". publisher: aspect press, 2009, 302 p. 9. g. pocheptsov, public relations for professionals. moscow, refl-buk publ., 2001, 624 p. american journal of business management, economics and banking volume 25 june 2024 p a g e | 111 www.americanjournal.org 10. i. sinyaeva, public relations in commercial activity. public relations in commercial activity: textbook for higher educational institutions. 2nd ed., revised and supplemented by m.: yunitidana, 2015, 414 p. 11. chumikov a. n. svyazi s obshchestvennosti i mediakommunikatsii : uchebnoye posobie dlya vuzov [public relations and media communications: a textbook for higher education institutions]. — 2nd ed., revised and supplemented — moscow: yurayt publishing house, 2024, 199 p. 12. shishkina m. public relations in the system of social management – st. petersburg: palladamedia publishing house and szrc rusich, 2002, 444 p. 13. public relations. principles and practice. kitchen f., publisher: unity-dana, publication year: 2004, place of publication: moscow, 454 p. 14. "how the market economy works: principles, what the concept includes" ria novosti / electronic source: https://ria.ru/20220217/ekonomika-1773317937.html (accessed 02.05.2024) 15. "contribution to the formation of pr by s. black, a. lee, e. bernays, s. cutlip" analytical information and cognitive portal neuroplus.ru / electronic source: https://neuroplus.ru/sem-blekchto-takoe-pr.html (accessed 02.05.2024) 16. "interpretation of the designation. car brands for 2024" infoshina / electronic source: https://infoshiny.ru/stati/chto-takoe-(accessed 02.05.2024) 17. vw management apologized for the "diesel scandal" of deutsche welle / electronic source: https://www.dw.com/ru/ (accessed 02.05.2024) 18. "what is" pr up business / electronic source: https://upinc.ru/blog/stati/pr-svyazi-sobshchestvennostyu-prostymi-slovami/ (accessed 02.05.2024) 19. "according to the results of the "openness index", the agency of statistics under the president of the republic of uzbekistan has achieved the highest result" / electronic source: https://stat.uz/ru/press-tsentr/novosti-goskomstata/52474-ochiqlik-indeksi-da-o-zbekistonrespublikasi-prezidenti-huzuridagi-statistika-agentligi-eng-yuqori-natijaga-erishdi-266 (accessed 02.05.2024) 20. "what pollutes the air in tashkent and how to fix it. statement of the ministry of ecology" gazeta.uz / electronic source: https://www.gazeta.uz/ru/2024/01/12/air/ (accessed 02.05.2024). american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 60 www.americanjournal.org forms, models and mechanisms of public-private partnerships in the service sector utemuratova gulnarakhan khojaniyazovna, dsc, professor, head of the department "fundamentals of management and economics", karakalpak state university, uzbekistan a b s t r a c t k e y w o r d s in this article, the forms of public-private partnership, the main directions of economic activity between state and private business entities, the main forms of public-private partnership in the service sector, the main features specific to this system, the role of publicprivate partnership in the system of interaction between the public and private sectors and its outsourcing of public services and its differences from the state franchise are explored. service sector, publicprivate partnership, project, public services, outsourcing, franchising. introduction currently, in many countries of the world with a market economy, significant changes are taking place in the system of economic relations between the state and the private sector, and these changes are forming a new institutional structure of the economy. the essence of the ongoing processes is expressed in two directions: the change in the ratio of its distribution as a result of the increase in the share of profits from entrepreneurship in the national income; successful implementation of economic reforms and reduction of existing barriers to economic growth. such changes cover almost all spheres of activity, in particular, state administration, business entities, and affect various aspects of relations between them. this process is manifested not only at the national level, but also at the international level. literature review conceptual foundations of public-private partnership, monetary policy, ways to achieve the fastest growth of household incomes by encouraging private investments, problems related to the conditions of using the economic functions of the state for the formation of a competitive environment j.m. keynes [7], y. a. schumpeter [17], k. r. mcconnell, st. l. brew [9], dj. k. galbraith [4], s. p. kukura [8], j. pierre, j. g. peters [ 18] was illuminated in the centuries. research methodology in the process of research, the system of economic relations between the state and the private sector, the economic nature and content of the "public-private partnership" category, the implementation of american journal of business management, economics and banking volume 29 october 2024 p a g e | 61 www.americanjournal.org public-private partnership projects, the main forms of public-private partnership in the service sector, the main characteristics of this system, the study of economic systems and ratios in a dialectical, systematic way and scientific approach, comparative and comparative analysis and grouping methods were used. with the development of the market economy in our republic, the role of the state has significantly decreased, and the functions of managing the main facilities have gradually been transferred to the private sector. also, at present, it is necessary to implement prospective cooperation with private business and to ensure optimal harmony with the means and measures of state regulation of competition. the adoption of the law of the republic of uzbekistan no. orq-537 dated may 10, 2019 "on publicprivate partnership" envisages the development and regulation of relations between state and private business entities in various areas of economic activity in our country. the main purpose of this law is to regulate relations in the field of public-private partnership, including concessions. it is known that the concept of public-private partnership corresponds to the word "public private partnership" (ppp) in english. it should be recognized that, despite the fact that the cooperative relations of the two parties should be equal and mutually beneficial, it is the participation of the state that distinguishes it from all other forms of relations. private enterprises actively cooperate with each other in various forms and mechanisms, which is considered a normal business practice. states also interact with each other and form international organizations, alliances, and associations of political, military, and economic nature. such connections are widely popular in world practice. public-private partnerships always define a new quality of relationship that creates a certain synergistic effect that cannot be achieved in any other way. the conceptual foundations of ppp are presented in the works of j.m. keynes, where it is justified that the fastest growth of household income can be achieved by stimulating private investment and monetary policy. then the theory of "welfare state" appeared, one of its founders is d. k. galbraith. the further development of these studies is presented in the works of k. r. mcconnell and st. l. brewer. according to them, five economic functions of the state can be used for the formation of a competitive environment: 1) support of the social environment and legal framework; 2) ensuring fierce competition; 3) distribution of profits and material benefits; 4) controlling the distribution of resources; 5) ensuring sustainable growth of the economy. taking into account these conceptual bases, the priority directions of the formation of cooperative relations of state and private entrepreneurship are based. in this case, the state appears as a guarantor of the competitiveness of the economy and the freedom of business activity. according to the methodological approach, taking into account the redistribution of property rights, the following definitions of ppp can be given [11]: • "ppp is viewed as indirect privatization, which helps transfer projects from the state"; • "ppp is interpreted as a 'third way', through which the government demonstrates ways to improve the provision of social benefits to the population"; • "the ppp is a substitute for privatization programs and allows maintaining the control functions of the state in socially important sectors of the economy. in this case, in contrast to privatization, the property right in the partnership remains with the state". also, in the textbook "public-private cooperation: theory and practice" by v.g. varnavsky, a.v. klimenko, v.a. korolev it is said that "spp represents a legally strengthened form of interaction american journal of business management, economics and banking volume 29 october 2024 p a g e | 62 www.americanjournal.org between the state and the private sector in relation to the services performed and provided by state and public agencies in order to implement socially significant projects in state and public property objects, as well as in a wide range of economic activities". the choice of a specific model depends on the implementation of projects of socio-economic importance. it should be said here that the operator model is based on the division of responsibilities between public and private partners. this model is used in waste processing. the cooperative model is used when it is difficult to provide services to independent objects of taxation. this mechanism is implemented through a joint venture of the state and a private entrepreneur. the contract model is often used in the energy sector for investments aimed at reducing current costs. the financial leasing model provides for the leasing of buildings, facilities, production equipment, vehicles, and engineering complexes by the state to the private sector. the main features of the ppp system around the world are as follows: 1. cooperation. in the framework of ppp, joint development of project goals, objectives, programs and their management mechanism is carried out. 2. joint implementation of assigned tasks. by participating in cooperative relations, the parties strive to find the optimal way to solve problems, to develop a common action policy in one or another case. 3. duration of cooperation. ppp contracts are usually calculated to be implemented over a certain period of time, and cooperation implies the permanent institutionalization of mutual relations between the parties [12]. 4. sharing resources. the parties combine not only financial resources, but also intellectual, labor and informational resources. relationships are implemented for the search, exchange and management of resources to achieve the goals set in the project. 5. risk management. risk management is one of the important objectives of ppp implementation. by joining forces, the parties will try to provide protection against many risks, identify hidden risks, and choose the appropriate method of their insurance. it should be noted that our research work analyzes the management mechanism of such forms of ppp projects as a concession in the service sector. this is due to the fact that the concession drawing of the ppp project is the most widely used in the world and is practically used in all spheres of public services, and the concession continues to be of great interest in the conditions of financial and economic instability. concessions are superior to other forms in terms of the number of transactions, the volume of involved investments and various economic indicators. conclusion/recommendations 1. public-private partnership initiative, organization, and the leadership role considered as a guarantee are directed to ensure a new quality of state-related relations. the role of an entrepreneur in providing ppp is financing, effective management, professional activity suitable for specialization. the main goal of the ppp is to support the implementation of public tasks of high social importance. such tasks include the creation of infrastructure of housing and communal economy, transport networks, housing construction, development of the industry, research of large-scale innovative projects, organization of insurance to protect the population from catastrophic risks. american journal of business management, economics and banking volume 29 october 2024 p a g e | 63 www.americanjournal.org 2. public-private partnership is a mutually beneficial cooperation between the state and business based on the sharing of risks between the state partner and the private partner for a certain period of time, for the purpose of implementing state and social property objects and various socially significant projects. 3. the attractiveness of the public-private partnership for the state is determined on the basis of factors such as the increase in the efficiency of projects due to the participation of the private sector, the ability to solve important issues capable of developing the state economy, the reduction of budget costs at the expense of private financial resources, and the strengthening of the socio-economic stability of the regions and the increase in the level of competition. 4. large-scale scientific studies on the structural forms of ppps were conducted by world bank experts, which distinguish the ppp contract from outsourcing of public services and state franchising. references 1. varnavsky v.g., klimenko a.v., korolev v.a. public-private partnership: theory and practice: textbook. – m.: state university-higher school of economics, 2010. 2. varnavsky v.g. partnership between the state and the private sector: forms, projects, risks / v.g. varnavsky. -m.: nauka, 2005. 315 p. 3. state and business: institutional aspects. m.: imemo ras, 2006. p. 40. 4. galbraith, j.k. economic theories and the goals of society economics and the public purpose (1973) / under general. ed. and with a preface. n. n. inozemtsev, a. g. mileikovsky. – m.: progress, 1976. – 408 p. 5. djumaniyazov u.i. "some theoretical and methodological issues of corporate management development based on public-private partnership" // "economics and innovative technologies" scientific electronic journal. 2017 no. 3, may-june, p. 9. 6. kabashkin v.a. formation and development of partnerships between the state and business structures in the russian federation (managerial aspect): abstract of thesis. doc. econ. sciences: v.a. kabashkin. m., 2007. p. 23 7. keynes j.m. general theory of employment, interest and money / transl. english prof. n.n. lyubimova, under. ed. doctor of economics, prof. l.p. kurakova. – moscow: miemp, 2010. 8. kukura s. p. theory of corporate governance / s. p. kukura m.: economics, 2004. p. 105. 9. mcconnell k.r., brew s.l. economics. principles, problems, policies. – m.: republic, 1992. t. ii. – p. 398. 10. national innovation systems in russia and the eu / ed. ivanova v.v., klesova s., lindholma p., lukshi o.p. – m.: tsipran ras, 2006. – p. 200. 11. romanova o.a. theory and practice of developing public-private partnerships / o.a. romanova // bulletin of the ural state technical university. 2007. no. 3. p. 41. 12. styrin e.m. international experience in using ppp to implement e-government projects. – m.: “hse publishing house”, 2010. 13. law of the republic of uzbekistan dated may 10, 2019 orq-537 "on public-private partnership". https://lex.uz/docs/4329270 14. frolova e.d. main trends in the development of relations between the state and business / e.d. frolova // bulletin of ustu-upi. 2003. no. 7. p. 31. https://lex.uz/docs/4329270 american journal of business management, economics and banking volume 29 october 2024 p a g e | 64 www.americanjournal.org 15. khodzhaev p.d. foreign experience in the formation and development of partnerships between the state and regional business structures / p.d. khojaev // bulletin of the russian-tajik (slavic) university. dushanbe: rtsu, 2014. no. 3 (46). p. 102. 16. sharinger l. a new model of investment partnership between the state and the private sector / l. sharinger // world of changes. 2004. no. 2. – p. 22. 17. schumpeter j.a. history of economic analysis in 3 vols. – st. petersburg: economic school, 2004. 18. peters j.g, pierre j. governance politics and the state (political analysis). – n.y., 2000. 19. www.imepi-eurasia.ru. – с. 3. 20. www.inage.ru/ppp/casestuty/framework_paper.ru. 21. www.ppi.worldbank.org american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 56 www.americanjournal.org specific aspects of the formation of youth leadership training in new uzbekistan makhmudov komal samadovich, associate professor of tashkent financial institute., doctor of philosophy in political science (phd e-mail: maxmudovks@mail.ru тел: 90 90282 55 tashkent state university of economics department” social sciences " f.f.d.f.d., (phd), associate professor a.m.based on rachmanoff's review a b s t r a c t k e y w o r d s this article reveals specific examples of important and necessary aspects of state youth policy in our country, the results of reforms in the field of youth policy, large-scale reforms in the formation of leadership in youth through state youth policy, their results, innovations in youth policy and the harmonious movement of society, state and youth, important aspects of youth leadership. new uzbekistan, democracy, citizen, young citizens, leader, youth leader, leader, young leader, informal leader. introduction from the historical progress of mankind, it is known that the growth of the younger generation of society and the state in modern conditions and the elevation of worldview, intellectual potential, education, etiquette, spirituality, which is the day of tomorrow, was considered as an urgent social, political process. one of the important tasks in the process of building a new uzbekistan is to bring special attention to the leadership skills that are taking shape in our youth, to grow the emerging younger generation into full-fledged people, and to regulate youth reforms to reform the youth sphere and carry out systematic work "on september 14, 2016, the law of the republic of uzbekistan on-son decision". comprehensive work is carried out in the process of implementing state youth policy in our country. section 3 of the law in the" juvenile public policy order " sets out the following way. "the state policy on youth is a system of socio — economic, organizational and legal measures that provides for the creation of conditions for the social formation of young people and the maturation of their intellectual, creative and other potential, youth (young citizens)-persons under the age of fourteen and not more than thirty years." "the word leader in english "leader" means leader, chief, leader leader, leader-leader of any political party or organization" . "leadership (english: leader from the word leader, beginner) is the process of social influence that unites the help and character of others in the performance of a common cause." american journal of business management, economics and banking volume 25 june 2024 p a g e | 57 www.americanjournal.org what should be the leading youth today? what characteristics should a leader have? what should be manifested in the peculiarities of leadership itself? the main characteristics of leadership, that is, leadership, are as follows: leading youth developed a desire to be responsible, able to make decisions in difficult times and processes, as well as to take proper responsibility for the decisions they make; the leader has the ability and competence to always think, care about the interests of people and teammates in constant movement and in the interests of people, and not for personal gain during youth activities; leader young people should have the ability to lead a team on a completely voluntary basis, according to the desire and strength of the goal in them; leader youth charisma and gaining the power of natural influence; it is necessary for the leader young people to have the knowledge and skills that can make them feel confident in the leader by the group and the presence of strong authority; leader youth the ability to recognize mistakes and take responsibility for the situation, from which to look for personal mistakes. leadership at first glance may seem like leadership. partially correct, but they have different aspects. first, the leader always moves behind the curtain and is self-identified, while the leader is formally appointed. secondly, the leader is a representative of a certain group closely related to him, and the leader (leader), in most cases, is separated from the group. thirdly, the primary area of the leader is interpersonal relations, while the leader is formal relations. but the leader has a lot of external data at his disposal, legal sanctions can be applied, that is, he is an official. in scientific language, a formal leader who exerts a strong and influential influence on a group, i.e., his influence on "subordinates"if it is positional. an informal leader is a person who provides leadership regardless of the place he occupies in the company. the essence of his movement is social, and it will be aimed at his "followers". the features listed above are formed on the basis of years of experience and innate talent in a person. from the above data, it can be understood that leadership is a derivative of the socio-political, spiritual and educational processes that the individual has been increasing over the years, the formation and development of leadership in young people is one of the necessary and important issues. the essence of the youth policy conducted today is that it is important at all times to increase the number of leading youth in our society, mobilize in the interests of society and the state. youth is an important layer that determines the future, potential of each state. today, all conditions and opportunities are being created in our country on the way of education of young people, vocational training, growing up as mature people. particular attention is paid to the realization of their dream goals, progressive initiative and support of their ideas. therefore, in our country, young people, who are recognized as an active layer of society, are expressed confidence in the country as a great power, a strategic resource of the state, providing the prosperity of the country. as a result, highly educated, modern-minded, young people with a strict position are becoming a decisive force in the country's tomorrow's development. as a result of ensuring the employment of young people, supporting their business projects, their lifestyle is improving. in the following years, a separate system was created for the comprehensive support of young people, the protection of the rights and legitimate interests of young people, the upbringing of enterprising, american journal of business management, economics and banking volume 25 june 2024 p a g e | 58 www.americanjournal.org ambitious young people who are able to take responsibility for the prospects of our country. through this system, we are witnessing today that in the process of educating our young people as harmonious, perfect people, we are taking large-scale measures on all the conditions of bringing youth policy to the top. non-profit organizations and public institutions responsible for the field of youth policy "youth affairs agency of the republic of uzbekistan, youth parliament under the chambers of the supreme assembly, youth academy under the ministry of innovative development of the republic of uzbekistan was established. effective work is being carried out to ensure healthy growth of the younger generation, quality education and upbringing as a competent person, as well as to introduce "five important initiatives"aimed at comprehensively supporting the interest of young people in culture, art, sports, information technology and reading books. new state and non-state preschool organizations, secondary schools, universities, branches of prestigious foreign universities, modern it parks, cultural institutions and sports facilities, educational institutions of a completely new pattern "presidential schools", "timurbek school", "creative schools" serve to educate a new generation of mature personnel capable of competing in the conditions of globalization today. "president of uzbekistan shavkat mirziyoev addressed the parliament on december 29, 2020, declaring 2021 as the year of youth support and strengthening the health of the population. in order to radically reform and further develop the youth support system, "the president in his speech spoke about the relevance of youth support. the proposal received public support. "of course, it is very difficult to name the year ... we prepared a lot for it. the current environment has once again shown that local councils, local leaders, should pay attention to young people. secondly, if today we do not continue to work to improve the health of the population, which began during the pandemic, it will be late tomorrow if we do not solve these issues today. we, our people, suffered greatly from these shortcomings during the pandemic, especially in the countryside. we did not panic, but we suffered," the president said. "in general, a decisive role in the development of any society is played by the healthy and harmonious development of the younger generation, on which the future of this society depends. therefore, in matters of expanding our reforms and further improving its effectiveness, we consider our energetic , enterprising, comprehensively developed youth with modern knowledge and skills as our base," said the head of state. "our top priority should be to set ambitious goals and create competent youth to achieve them. only then will our children become a real force that will fulfill the long-standing dreams of our people," the president said. "i am sure that together with such educated young people with powerful creative potential , we will build a new uzbekistan," said the head of the state. in order to develop effective solutions to problems in the field of youth, as well as to ensure the implementation of tasks related to bringing to a new level the state youth policy of the president of the republic of uzbekistan to the supreme assembly of the republic of uzbekistan and to our people, which was established in december 2020, a number of tasks were assigned to the including; more than 1,000 vocational training centers will be established in the neighborhoods from next year, with subsidies of up to rs. to do this, 100 billion will be allocated from the budget, citizens who want to american journal of business management, economics and banking volume 25 june 2024 p a g e | 59 www.americanjournal.org complete training courses and start their own business will be given subsidies of up to 7 million rubles for the purchase of equipment, each depending on the capacity and development direction of one district, families engaged in farming will be allocated 10 acres to 1 hectare of land, providing employment assistance to underprivileged residents and 500 billion from public works funds. temporary unemployment benefits are increased up to 3 times, and the old bureaucratic procedure, in which 6 documents are required, is canceled. today, youth of uzbekistan are actively involved in the life of the state and society. youth policy in our country is carried out in harmony with international generally recognized international law and norms. there are all opportunities for young people to realize their intellectual, spiritual and physical potential. "another important issue that always makes us think is the etiquette, the gait of our youth, in a word, the worldview. today the times are changing rapidly. who makes these changes feel more than everyone else – young people. may young people be in harmony with the demands of their time. but at the same time, do not forget about oneself. let the call to who we are, what a generation of glory we are, always resonate in their hearts and encourage them to remain true to their self. what do we achieve this at the expense of? at the expense of upbringing, upbringing and only upbringing" . in recent years, all conditions have been created for our youth to receive quality higher education in our country. in particular, it is first of all gratifying that in the 2023-2024 academic year the indicator of youth inclusion in higher education institutions was increased to 42 percent. "the ministry of higher education, science and innovation provided information on the number of otms in the republic and the number of students studying in it. it is noted that a total of 211 universities are operating in the republic and it is envisaged that approximately 1 million 200 thousand students will study in them. there are 950,000 students enrolled in the second year and above and 250,000 students enrolled in the first year. students are taught by 39,533 faculty members. the average scientific potential of the universities is 39.8 percent. to date, 193,761 young people have been admitted to 116 public institutions of higher education in the first phase, bringing coverage with higher education to 42%. 7,232 young people were enrolled in the magistracy in 105 state universities" . we are witnessing that the active participation of young people in the economic, social, political and spiritual spheres in our country is being emphasized today as the most important task, rather than every refugee. in particular, a new worldview that is taking shape in young people, as well as a tendency to innovations in their mentality, aspiration and enthusiasm for life, the process of reform in our country gives strength and spirit to young people. today, the work of protecting the interests of young people and the implementation of their dreams has been designated as one of the priorities in state policy. "we are carrying out a large-scale work to strengthen the civil position and activity of the younger generation, to educate our children as competent individuals, mature professionals who think independently, master modern knowledge and professions and can compete in the international arena." it is important to increase the participation of young people of new uzbekistan in innovative processes. in order to organize the work of the educational system in accordance with modern requirements and educate our youth in every way harmoniously in the spirit of love for the motherland, national pride, pride and national independence ideas, many effective works are carried out. leadership in youth also plays an important role in the performance of primary tasks in the education of skills and abilities. we can safely say that young people perform the most important tasks in the formation and development of a wide variety of human, professional and leadership skills, such as american journal of business management, economics and banking volume 25 june 2024 p a g e | 60 www.americanjournal.org analyzing the problem through the socio-humanitarian sciences, cooperating in the interests of themselves and their lives, taking on vital tasks and responsibilities, making decisions and solving problems in the course of their life the place of socio-humanitarian sciences in the life of a person, society and leader youth, theoretical and methodological issues of their training in the educational system have been in the attention of scientists of the world at all times, in this regard, specific scientific views, theories and teachings have been created. as a result of their thorough study, it can be said that the strategic goal of the activity of the institutional system of educational education according to its fundamental socio-philosophical essence is not only the training of specialists – personnel for one area or another, but, in a broad sense, the upbringing of a person, that is, the formation of bio-social characteristics in accordingly, the main issue in the educational system should not remain only a specialist-cadre cultivation in various fields, such as mathematics, physics, chemistry or engineering, doctor, teacher, these are the issues that stand in the second or later. in this place, human qualities, not knowledge, qualifications, skills and information related to a profession or specialty, come first. for society, for social life and development, it is not knowledge, qualifications and skills that first belong to one profession or another specialty, genuine human qualities and qualities are more important. that is, before becoming a human engineer, doctor or agronomist, it is definitely necessary to be human. because it is possible to extract an engineer, doctor or agranom from a person, not a person, from an engineer, doctor or agronomist. in conclusion, all conditions have been created in our country today for the development of leadership characteristics in young people. this can be seen in the law of the republic of uzbekistan "state policy on youth", the law "on education"and the resolution of the cabinet of ministers "on the right to approve the concept of development of state youth policy in uzbekistan until 2025"of january 18, 2021 no. 23". the implementation of these norms into practice plays an important role in the manifestation of leadership characteristics in young people. references: 1. ўрқ-406-сон 14.09.2016. ёшларга оид давлат сиёсати тўғрисида (lex.uz) 2. 23-сон 18.01.2021. ўзбекистонда ёшларга оид давлат сиёсатини 2025 йилгача ривожлантириш концепциясини тасдиқлаш тўғрисида (lex.uz) 3. o`zbek tilining izohli lug„ati. –t. “o„zbekiston milliy ensiklopediyasi” davlat ilmiy nashriyoti. 2013. 497-b. 4. chemers m. (1997) an integrative theory of leadership. lawrence erlbaum associates, publishers. isbn 978-0-8058-2679-1 5. 2021 йил — ёшларни қўллаб-қувватлаш ва аҳоли саломатлигини мустаҳкамлаш йили деб эълон қилинди – ўзбекистон янгиликлари – газета.uz (gazeta.uz) 6. 23-сон 18.01.2021. ўзбекистонда ёшларга оид давлат сиёсатини 2025 йилгача ривожлантириш концепциясини тасдиқлаш тўғрисида (lex.uz) 7. “shavkat mirziyoyev” ning hikmatlari, so`zlari ⋆ www.savol-javob.com 8. республикада жами 211 та олийгоҳ фаолият юримоқда ва уларда тахминан 1 млн 200 минг нафар талаба таҳсил олиши кўзда тутилган. (aniq.uz) 9. мирзиёев ш.м. янги ўзбекистон стратегияси. тошкент: «ўзбекистон» нашриёти, 2021. б.54-55. 10. мирзиёев ш. янги ўзбекистон стратегияси. – тошкент: “ўзбекистон”, 2021. – б. 231-232. (mirziyoev sh. new uzbekistan strategy. tashkent: “uzbekistan”, 2021. b. 231-232.) https://lex.uz/docs/3026246 https://lex.uz/docs/5234746 https://lex.uz/docs/5234746 https://www.gazeta.uz/uz/2020/12/29/president/ https://www.gazeta.uz/uz/2020/12/29/president/ https://lex.uz/docs/5234746 https://lex.uz/docs/5234746 https://www.savol-javob.com/shavkat-mirziyoyev-ning-hikmatlari-sozlari/?ysclid=lvmec5kwn7491339991 https://aniq.uz/yangiliklar/respublikada-jami-211-ta-oliygoh-faoliyat-yurimoqda-va-ularda-taxminan-1-mln-200-ming-nafar-talaba-tahsil-olishi-kuzda-tutilgan?ysclid=lvmerd35h7126943306 https://aniq.uz/yangiliklar/respublikada-jami-211-ta-oliygoh-faoliyat-yurimoqda-va-ularda-taxminan-1-mln-200-ming-nafar-talaba-tahsil-olishi-kuzda-tutilgan?ysclid=lvmerd35h7126943306 american journal of business management, economics and banking issn (e): 2832-8078 volume 18, | november, 2023 p a g e | 81 www.americanjournal.org evaluating responsibility accounting effectiveness under resource consumption accounting method-a case study in the state company for the pharmaceutical industry and medical appliances / samarra yaseen abbas dawood researcher: tikrit university college of administration and economics yaseeniraq1996@gmail.com asst. prof. dr. laith noman hassoon tikrit university college of administration and economic layth522@tu.edu.iq a b s t r a c t k e y w o r d s the search aimed to identify the possibility of using the method of resource consumption accounting as one of the modern methods in allocating costs and measuring variances and the impact of these variances on the effectiveness of responsibility accounting in industrial companies through its production of appropriate information, the search dealt with the theoretical framework for resource consumption accounting method, the theoretical framework for the responsibility accounting system, in order to achieve the objective of the search and test its hypothesis, the general company for the manufacture of medicines and medical supplies in samarra was chosen as the subject of the study, the application of the resource consumption accounting method was tested on the company's data according to a case study in order to identify the contribution of the information resulting from this method to the effectiveness of responsibility accounting for the company under study, the search concluded that the resource consumption accounting method is one of the important methods for managing costs as a result of its ability to provide information to measure and identify. variances, resource consumption accounting method, responsibility accounting american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 82 www.americanjournal.org introduction companies in the modern industrial environment face a range of challenges as a result of severe competition pressures and decision makers at all levels of management need appropriate, acceptable and timely information to reduce costs and therefore the existence of deviations in the company is unacceptable, companies need appropriate information. this information requires careful cost measurement. and deviations represent the difference between actual results and results included in the planning budgets (bhimani et al., 2015: 444), measuring deviations requires modern cost systems that accurately allocate costs. traditional cost systems suffer from deficiencies in their inability to provide accurate information reflecting the real deviations of the company's resources, as well as inefficiencies and indicators in judging resource utilization performance and providing them with relevant information for decision-making (mahmoud, 2017:2). there was therefore an urgent need to adopt modern management and accounting approaches and techniques to keep abreast of these developments in order to enable companies to achieve their objectives, including accounting for resource consumption, as it is one of the entry points for strategic cost management that contributes to the achievement of two corporate objectives which helps it to formulate its decisions precisely and competitively, first, to contribute actively to the provision of accurate information on resources and related costs, as well as to the provision of precise foundations for the allocation of indirect costs that contribute to the allocation's objectivity, second, contributing to cost reduction by identifying and measuring inactive energy and associated costs as well as removing non-value-added activities under resources and activities (malik and others, 2019:171), several studies (mahmoud, 2017) (okoye, 2009) (obeid, 2021) have been interested in testing the possibility of harnessing the method of accounting for material consumption in determining cost deviations that can provide a basis for performance evaluation within the company's responsibility accounting system. given the importance of the responsibility accounting system, the importance of its centers for cost control and its contribution to the provision of accounting information in the form of performance reports that oversee the work of section officials and assess their performance within the framework of the responsibility assigned to them by senior management, the method of accounting for resource consumption can be used to operationalize accountability decisions. the importance of research therefore comes from the importance and novelty of resource consumption accounting and its role in providing information to measure deviations and the impact of such deviations on the effectiveness of accountability accounting through the method's ability to provide more accurate cost and operational information on the allocation of available resources. this research aims at achieving a major objective, namely, to ensure that the method of accounting for resource consumption can be used as an input into the provision of information to measure deviations and the impact of such deviations on the effectiveness of corporate accountability, and to test this possibility if it is applied in iraq's environment. while the limits of research are limited to the role of resource consumption accounting in accounting for responsibility by measuring deviations of the company in question, the limits of spatial research are limited to the general company for pharmaceutical and medical supplies in samarra and for the period of time (2018). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 83 www.americanjournal.org 2. conceptual framework for accounting for resource consumption and accountability 2. 1. the formation and concept of accounting for resource consumption in europe, the german cost accounting system (gpk), which was constantly developed to access a cost system, contributed to the process of allocating indirect costs more accurately. this system is based on the division of the company into a group of production and service resource pools as well as the classification of costs into fixed and proportionate costs and costs that form the basis of control and are allocated on the basis of the nature of each pool's outputs, the german cost system was a rapid response to weaknesses and difficulties around the activity-based cost system (abc), an attempt to provide accurate information on the cost of expendable resources with the possibility of identifying idle energy, and both systems provide information that is better suited than traditional accounting systems (okutmus, 2015: 47-48). as attempts continue to develop cost accounting systems and attempt to take advantage of the advantages of both abc and gpk, a new concept was introduced in 2000, the resource consumption accounting system is defined as an attempt to integrate information generated on expendable resources with activities under an integrated and comprehensive technology that provides cost responses under the cause-effect relationship and provides detailed and accurate information for decision-making (malik, 2019:173). the definitions for accounting for resource consumption included the following: it is a resource-oriented input for cost allocation aimed at improving the activity-based cost system to enhance the cost management of the strategic system using resources as a key objective that enables the measurement of inactive resources to improve the accuracy of cost allocation and provides information on management's responsibility for evaluating performance, this helps in decision-making and enhances competitive advantage in the sense that it focuses on the decision-making perspective s competitive position (wang, 2017:408 & liu), defined as a management accounting system, which classifies costs as fixed and variable and supports management decision-making with real cost data by identifying idle energy (okutmus, 2015:46), as well as defined by al-naimi as a cost management portal aimed at optimizing the utilization of the company's resources, by applying the principle of causation in the allocation of expendable resources to cost targets (products) by focusing on resources as the starting point for all operations and the cause of costs, to provide appropriate information on how to optimize the utilization of available resources, employ inactive energy which contributes to increased productivity, lower product cost and support competitive position (al-naimi, 2021:75). the researchers see a forward-looking entry focused on achieving the best cost allocation through inkind flow of resources based on quantities and based on the requirements of cost measurement subjects and in accordance with the client's resource wishes and managing resource planning and managing inactive energy by taking into account the interrelationships between resources and each other in preparation for the accountability of those responsible, better information to assist management in decision-making with a view to rationalizing resource management while reducing resources that do not add value as well as increasing revenues to maximize profitability and support the company's competitive position. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 84 www.americanjournal.org 2. 2. resource consumption accounting: resource consumption accounting is based on three main components (shaswar and mustafa, 2022:325): a. resources: rca focuses primarily on resources from a holistic perspective and provides clear insights for managers on the energy used and the efficiency of its use and according to that pillar, resources are classified within the resource pools, to rely on the idea that resource pools should include the costs associated with each type of resource and each center’s resources must be uniform and under the responsibility of only one director, by pooling resources around a simplified output scale, cost centers have become easier to manage. b. nature of cost: rca is based on the fact that the underlying cause of cost occurrence is resource consumption through resource depletion and cost behavior pattern and the input distinguishes between two key cost dimensions, the first being the initial nature of the cost, whether fixed or variable costs, the second is the potential nature of variable costs, which explains the likelihood of a relative change in costs at the point of consumption. therefore, the method of allocating costs must be linked to resource consumption models, addressing the nature of variable costs, either variable costs or fixed costs. c. using the cost model on a quantitative basis: the input (rca) depends on measuring resource outputs in the form of quantitative units of direct working hours, number of machine turnover hours and other foundations. the planned and actual cost is allocated to different cost units on the basis of what consumed a quantity of these resources taking into account the causal relationships between actual resources. 2. 3. the importance of accounting for resource consumption: accounting literature has set many objectives for the rca input, the most important of which are: a. the method of accounting for resource consumption is a cost management accounting tool that aims to provide appropriate information on how to efficiently utilize available resources and employ surplus idle energy, thereby contributing to increased productivity and lower product cost, thereby increasing the company's profits and supporting its competitive position (abbas, 2020:870). b. provide control over the use of resources by tracking the quantities of resources used and not used and identifying inactive and continuously restricted capacities to optimize the utilization of the company's available resources (abu sha 'aisha, 423:2016). c. resource consumption accounting highlights the potential of resources to create value added for the customer both through optimal utilization of the interchangeable and non-interchangeable relationships between resources and activities and between resources and each other (alkayadi, 2019:864). d. women's study the impact of the nature of the cost on resource consumption according to two factors: the basic nature of the cost and the potential nature of the variable cost (al-hussein, 2016:27). e. provide accurate and fair measures of performance by analyzing deviations and separating the amount of resources consumed from the corresponding value, thereby providing more credible and objective information in analyzing deviations which contributes to the effective application of the principles of accountability for all company functions (al-saied., 2019:28). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 85 www.americanjournal.org in the view of the researchers, the main objective of the resource consumption accounting input is to optimize the utilization of the resources available to the company, whether human or material, and to strengthen the utilization of inactive energy in order to reduce the cost of products and thereby increase the company's profitability and competitiveness. 2. 4. the concept of accountability of responsibility: accountability of responsibility is a comprehensive operational system that links administrative management with the accounting system by dividing the project into centers of responsibility that help link performance to those responsible for such performance through an integrated reporting system that relies on the application of the principle of oversight with exception, thus assisting in the processes (planning, organization, oversight and evaluation of performance); today's companies are characterized by complex organizational structures that are difficult to manage centrally "the responsibilities and delegation of authority for making and implementing all decisions relating to the management of financial resources have to be defined. accordingly, each manager is given the powers and authorities to manage the activity and carry out the required efficiently and effectively. and at the same time responsible for its consequences (adam, 2020:1), the definitions of accountability for responsibility have been varied, defined as a management control system based on the principles of delegation of responsibility and positioning the authority is delegated to the centre of responsibility and accountability for the centre's performance; under which managers are given decision-making authority and responsibilities for each activity occurring in a particular area of the company sector activities (fowzia, 2001:54), it defined it (earning) as a system that, in the light of the concept of decentralization, provides accounting information on managers' performance in the sections through performance reports based on comparison of actual performance with the scheme with a view to identifying deviations (preferred or not preferred) and linking them to the company's responsible persons, within the authority granted and within the cost and controlled income (earning, 2007:5). in the researchers' view, it is a management accounting method aimed primarily at strengthening performance control by linking the responsibility for expenditure and income to the different managerial levels of the organizational structure under the planning budget, performance control reports can be issued in comparison with the blueprint for each center of responsibility for deviations ", which enables the timely and accurate identification of responsibility for deviations, accounting for responsibility is the basis for the success of the decentralized management system. 2. 5. the importance of accountability: the importance of accountability stems from the fact that it is part of the internal control system that serves the planning and control processes of the resources available to the company to achieve both efficiency and effectiveness. moreover, it is a tool that evaluates the performance of the company's divisions (aldalahama, 2008: 324), the importance of the system comes from the company's performance control processes, through procedures whereby actual implementation is followed up under planned performance in the sense that censorship begins at the beginning of the actual implementation and continues with it for the purpose of detecting deviations, identifying the persons responsible for them, taking the necessary action to correct them in a timely manner and then identifying the reasons for their occurrence and reporting them to the different administrative levels to make appropriate decisions about them (ahmed and mansour, 2019:19). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 86 www.americanjournal.org the two researchers consider the importance of the responsibility accounting system to be the primary management of oversight and therefore the essence of oversight to help it increase the effectiveness of oversight because it relies on the principle of dividing the company into parts to make oversight of these parts more objective, accurate and fair. 2. 6. importance of cost system information in evaluating the performance of responsibility centers the importance of cost information lies in evaluating performance by measuring actual performance against planned performance and analyzing deviations. measuring the actual performance of managers of responsibility centers requires the provision of actual data to be measured, the measurement process arises as activities start in the company, and all branches of accounting, including cost accounting, affect the actual measurement process. after the completion of the accounting system and the determination of actual performance, the actual performance is linked to the planned performance of the responsibility centers, its costs, which have arisen and have been influenced by major decisions, are allocated to it in accordance with the control's cost, each center shall have its own planned and actual cost and thus facilitates the process of measuring performance, and is summarized in the performance report, which shows amounts of planned and actual key financial results appropriate to the type of position of responsibility and thus reflects the merit of its manager's management (amar, 2011:62), the deviation between actual and planned performance, which may or may not be preferred, is analyzed. in both cases, this is a deviation from the scheme. the occurrence of such deviations is due to two reasons (inaccuracy in planning rates and performance criteria, inefficiency in actual implementation) (jawdah & al-soboa, 2009: 31-32). in the light of these deviations, the effectiveness of these centers is judged. in the view of the researchers, the method of accounting for resource consumption measures the cost objectively and realistically against other systems, and thus the performance of the company's cost positions is measured in the performance reports against actual costs. (measured by the method of accounting for resource consumption) with planned costs, this results in accurate detection of deviations, mainly in the decision-making process, which affect the judgement of the performance and effectiveness of the cost positions. 3. applied aspect the applied aspect of the research is to conduct a case study on the general company of pharmaceutical and medical supplies in samarra in order to test the search hypothesis through the application of the resource consumption accounting system in the company in question. the application of the resource consumption accounting system results in information that helps the company to activate responsibility accounting decisions by properly measuring costs the products of the eye drops department were selected from the company departments, 3. 1. steps to apply resource consumption accounting in the company resource consumption accounting is applied according to the following steps: american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 87 www.americanjournal.org 1. identification of available resources spent on products: first, the available resources disbursed on the products of the eye drops section, which consists of 13 products, and table (1) shows the resources consumed during this period: table 1 costs incurred during the year (2018) on products statement prices /dinar/ raw materials and ores 378,498,056 direct wages 258,674,050 indirect salaries and wages 157,105,480 extinction 30,854,427 packaging materials 11,915,736 oils & greases 12,225,000 electricity 10,458,045 fees 15,650,000 workers' equipment 2,930,240 hospitality 43,140 maintenance services 7,436,401 fuel and oil 17,360,732 stationery 5,019,938 standby tools 4,474,339 lease of fixed assets 5,890,900 publicity and advertising 8,057,421 research & consulting 3,340,000 miscellaneous service expenses 1,199,497 transport, dispatch and communication 3,290,860 water 4,195,507 marketing and selling expenses 15,625,535 administrative expenses 17,197,880 total 971,443,184 source: table of researchers' preparation based on data provided by the company the amounts disbursed in table (1) were extracted through the company's records (samarra pharmaceutical lab) for the year (2018) of the eye drops department and represents a starting point in the cost system, and the company management seeks to optimize them in order to obtain the highest productivity. 2. identification of resource pools: resource pools are identified through the pooling of homogeneous resources with similar features in special pools, as shown in table (2) below: table 2 inventory and identification of resources in appropriate complexes no sources groups sources cost 1 direct material direct ores and materials 378,498,056 2 direct action direct wages 258,674,050 3 indirect materials packaging materials 11,915,736 oils & greases 12,225,000 4 indirect work indirect salaries and wages 157,105,480 5 driving forces extinction 30,854,427 water 4,195,507 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 88 www.americanjournal.org electricity 10,458,045 standby tools 4,474,339 oil materials 17,360,732 6 equipment workers' equipment 2,930,240 stationery 5,019,938 7 research & development publicity and advertising 8,057,421 research and consulting expenses 3,340,000 8 maintenance services maintenance of buildings 2,230,920 maintenance of machinery and equipment 4,461,841 maintenance of transportation 594,912 maintenance of office furniture and equipment 148,728 9 administrative and marketing expenses marketing expenses 15,625,535 administrative expenses 17,197,880 10 transport, dispatch and communication relocation of workers 1,974,616 public contacts 750,250 hospitality 43,140 fees 15,650,000 travel and dispatches 565,994 11 other service supplies lease of fixed assets 5,890,900 banking services 1,199,497 total 971,443,184 source: table of the researchers' preparation based on data provided by the company. in table 2, resources have been grouped within homogeneous pools based on their interrelationships in terms of technology, skills or cost components. resource characteristics should be combined and result in homogeneous resource pools, as well as to eliminate the complexity of the company. 3. identification of elements of direct costs to products: direct costs are addressed in the accounting of resource consumption by charging them directly to the cost objective (s), so the elements of direct costs (direct substances and direct wages) disbursed to each product have been identified on centileter basis, as shown in table (3) below: table (3) identification of direct costs on products for (2018) raw product name unit (centilitre) direct manufacturing cost unit manufacturing cost rate (centileter) 1 barzlon 15897 44،543،394 2802 2 janden 16357 44,981،750 2750 3 samaficol 0.5 18303 70،631،277 3859 4 methadine 19402 50،309،386 2593 5 methadine n 17607 70،410،393 9993 6 nazordin 0.5 15709 33،648،678 2142 7 new dixon 14470 35،219،980 2434 8 nassovrin 19900 38،924،400 1956 9 zankouslef 19580 55،998،800 2860 10 timosam 0.25 18004 46،972،436 2609 11 timosam 0.5 18603 55،418،337 2979 12 cyprosam 0.3 17075 45،778،075 2681 13 dixon 16240 44،335،200 2730 total 227147 637,172,106 2805 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 89 www.americanjournal.org source: table of the researchers' preparation based on data provided by the company. in table (3), distribution is based on the quantity of the product (centeliter). it is the company's measurement unit. the figures mentioned in the field of direct cost of manufacture were reached through the collection of the value of direct materials and direct wages of the product. the figures listed in the field of manufacturing cost rate of the unit were reached through the following formula: the product's share of direct costs = the direct manufacture cost of the product ÷ the quantity of the product, meaning that direct costs are addressed by charging them directly to the cost target (products) 4. separation of prorated and fixed costs in resource pools: costs in each resource pool are segregated into fixed and variable and, in accordance with cost behavior, there are costs that are unchanged by the volume of production and are fixed during the financial period, variable costs when the amount of inputs from expendable resources changes in proportion to the volume of production or so-called prorated costs and therefore fixed and proportionate costs in resource pools will be determined as follows: table (4) fixed and proportionate cost segregation sources groups sources fixed costs proportionate costs total indirect materials packaging materials 11,915,736 11,915,736 oils & greases 12,225,000 12,225,000 total 24,140,736 24,140,736 indirect work workers in production services 64,099,035 11,311,595 75,410,630 staff in the department 69,126,411 69,126,411 marketing workers 12,568,439 12,568,439 total 145,793,885 11,311,595 157,105,480 driving forces extinction 30,854,427 ,42730,854 water 167,820 4,027,687 4,195,507 electricity 522,902 9,935,143 10,458,045 standby tools 4,474,339 4,474,339 oil materials 17,360,732 17,360,732 total 31,545,149 35,797,901 67,343,050 equipment workers' equipment 1,142,794 1,787,446 2,930,240 stationery 375,642 4,644,296 5,019,938 total 1,518,436 6,431,742 7,950,178 research & development publicity and advertising 8,057,421 8,057,421 research and consulting expenses 3,340,000 3,340,000 total 11,397,421 11,397,421 maintenance maintenance of buildings 2,230,920 2,230,920 maintenance of machinery and equipment 2,989,433 1,472,408 4,461,841 maintenance of transportation 594,912 594,912 maintenance of office furniture and equipment 148,728 148,728 total 5,963,993 1,472,408 7,436,401 administrative and marketing expenses marketing expenses 9,844,087 5,781,448 15,625,535 administrative expenses 17,197,880 17,197,880 total 27,041,967 5,781,448 32,823,415 relocation of workers 1,974,616 1,974,616 public contacts 750,250 750,250 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 90 www.americanjournal.org transport, dispatches and communications hospitality 43,140 43,140 fees 15,650,000 15,650,000 travel and dispatches 565,994 565,994 total 18,984,000 18,984,000 other service supplies lease of fixed assets 5,890,900 5,890,900 banking services 1,199,497 1,199,497 total 7,090,397 7,090,397 source: table of the researchers' preparation based on the company's submissions. table 4 researchers allocated costs to appropriate resource pools and the classification of costs in each resource pool into constant and proportionate. this step is one of the main pillars of the resource consumption accounting process. it helps to extract variable cost rates through practical energy and fixed cost rates through theoretical energy and thus enables the identification of idle energy by separating fixed costs that do not add value to the company's core activities and keeping them in resource pools if the cost of the period is considered and the activities are charged at variable costs and fixed costs utilized 5. determining the causes of resources for each resource pool: the appropriate causes for each pool of resources are identified as the quantified measure of the volume of outputs and projected resources, as well as the amount of resources to be spent in each pool of resources from reaching a certain volume of outputs. this is the application of one of the principles of the method of accounting for resource consumption, which is the principle of causation, which can be explained through the following table: table (5) cost causes for resource pools resource pool cost-generating indirect materials quantity of materials (centileter) indirect work direct working hours driving force machine operating hours equipment number of workers research & development quantity of materials (centileter) maintenance services maintenance hours administrative and marketing expenses number of days transport, dispatches and communications quantity of materials (centileter) other service supplies quantity of materials (centileter) source: table of the researchers' preparation based on data provided by the company. based on table 5, the two researchers consider that the specific cost causes are appropriate and consistent with the nature of the resource pools. in the light of these causes, theoretical energy, its costs, practical energy and its costs, as well as the special rates of theoretical and practical energy, are determined. 6. theoretical and practical capacities and resource pool rates: resource pools' capacities and constant and proportional ratios are determined, resource consumption accounting being theoretical energy (design) of the company mainly to determine the fixed cost of the products, which means that the fixed indirect industrial costs identified for the activities are ultimately related to theoretical energy rather than actual production (practical energy) achieved during the specified period which represents the projected demand for the output of resource pools tailored to the product's demand. in this way, untapped energy can be exploited whether it is idle, surplus or lost. table (6) includes the theoretical and practical energy of resource pools, as follows: american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 91 www.americanjournal.org table 6 identification of theoretical and practical capacities and resource pool ratios resource pools 1 2 3 4 5 6 7 theoretical energy theoretical energy costs practical energy practical energy costs fixed cost rate (1/2) prorated cost rate (3/4) total ratio 5+6 indirect material 292,000 centeliter 208,000 centeliter 24,140,73 6 116 m/ centeliter 116 m/ centeliter indirect work 137,970 hour 145,793,885 78,260 hour 11,311,59 5 1,057 m/ centeliter 145 m/ centeliter 1,202 m/ centeliter driving force 137,970 hour 31,545,149 78,260 hour 35,797,90 1 229 m/ centeliter 457 m/ centeliter 686 m/ centeliter equipment 75 worker 1,518,436 43 worker 6,431,742 20,246 m/worker 149,575 m/worker 169,821 m/worker research & development 292,000 centeliter 11,397,421 208,000 centeliter 39 m/ centeliter 39 m/ centeliter maintenance services 17,885 hour 5,963,993 12,740 hour 1,472,408 333 m/ hour 116 m/ hour 449 m/ hour administrative and marketing expenses 365 day 27,041,967 260 day 5,781,448 74,088 m/ day 22,236 m/ day 96,324 m/ day transport, dispatches and communications 292,000 centeliter 18,984,000 208,000 centeliter 65 m/ centeliter 65 m/ centeliter other service supplies 292,000 centeliter 7,090,397 208,000 centeliter 24 m/ centeliter 24 m/ centeliter source: table of researchers' preparation based on results and company data. table (6) has been prepared based on tables (4) and (5) in terms of the adoption of cost causes and resource pools and the extraction of fixed cost rate based on theoretical energy and energy costs, according to the following formula: fixed cost rate = fixed costs ÷ theoretical energy. the prorated cost rate is extracted based on the practical capacity and costs of the operation, according to the following formula: variable cost rate = variable costs ÷ practical energy. thus, the overall rate has been reached, and the quantification of resource outputs (causes of resource cost) is explained: the number of days of the year for design theoretical energy (365 days) and materials used per day at the rate (800 centiliters) in the company is raw materials used in the production process. this figure represents the daily rate used according to the energy of the company and customer requests in the department of eye drops: (365 × 800 = 292,000 centiliters theoretical/design energy) the company operates (5 days a week) and the number of weeks during the year (52 weeks), thus the number of working days per year (260 days): (260 × 800 = 208,000 centiliter operation power) direct working hours (7 hours) per day, and number of employees in the department (54 workers): (7 × 365 × 54 = 137,970 hours theoretical energy work). (7 × 260 × 54 = 98,280 hours of operation energy per year). direct working hours for production activities: 32 workers in production lines + 11 workers in packaging = 43 workers. so direct hours 43 × 7 × 260 = 78,260 hours actual power (process) for production. number of workers required by theoretical energy = theoretical energy hours × number of workers/actual working hours 137,970 × 54/98,280 = 75 workers. in the maintenance complex theoretical maintenance hours: 7 × 365 × 7 number of workers = 17,885 hours. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 92 www.americanjournal.org operational maintenance hours: 7 × 260 × 7 = 12,740 hours. 7. identification and allocation of resource pools' costs to activities: the resource pools consumed will be determined in accordance with the activities and thereafter the costs of the pools will be allocated to the activities through resource drivers, if the costs collected in each resource pool will be apportioned to the extent that the activities are consumed from those resources. a. " identification of expendable resources by activities from resource pools: this step identifies expendable resources by activities from resource pools as in table (7) as follows: table (7) resources consumed through activities from resource pools sources activity indirect materials indirect work driving force equipment maintenance services marketing and administrative expenses production management 7280 7280 4 2100 24 communications 5460 5460 3 2100 18 handling 3640 3640 2 2100 12 operating 27300 27300 15 2100 91 transport 10920 10920 6 2100 36 storage 3640 3640 2 2100 12 packaging 208,000 20020 20020 11 2100 67 source: table of researchers' preparation based on results. in table 7, resources consumed by activities have been identified for all (centiliter) the packaging is assigned to this activity, and for the indirect work complex the share of each activity of hours depending on the number of workers in each activity above (4, 3, 2, 15, 6, 2, 11) factor respectively and corresponding working hours during the year (7 × 260 × 4 = 7280)... (7280, 5460, 3640, 27300, 10920, 3640 and 20020). for the maintenance complex, its hour was consumed equally between activities, and the marketing and administrative expenses pool by number of days per year but by share of the activity from days of the year depending on number of workers (260 ÷ 43 × 4 = 24)... (24 ،18 ،12 ،91 ،36 ،12 ،67 ). b. determination of the costs of activities consumed by resources: in this step, the costs of activities consumed by resources are determined in accordance with the preceding two steps and as shown in table (8) as follows: table 8 distribution of resource costs to activities source activity indirect materials indirect wages driving force equipment maintenance services marketing and administrative expenses total production management 8,750,560 4,994,080 679,284 942,900 2,311,776 17،678،600 communications 6,562,920 3,745,560 509,463 942,900 1,733,832 13،494،675 handling 4,375,280 2,497,040 339,642 942,900 1,155,888 9،310،750 operating 32,814,600 18,727800 2,547,315 942,900 8,765,484 63،798،099 transport 13,125,840 7,491,120 1,018,926 942,900 3,467,664 26،046،450 storage 4,375,280 2,497,040 339,642 942,900 1,155,888 9،310،750 packaging 24,128,000 24,064,040 13,733,720 1,868,031 942,900 6,453,708 71،190،399 total 24,128,000 94,068,520 53,686,360 7,302,303 6,600,300 24025,044, 210،829،723 source: table of researchers' preparation based on results. amounts based on table (6) and table (7) have been extracted in table (8) for each activity by multiplying the theoretical and practical rates of resource consumption according to each pool, according to the following formula: activity cost = activity share of × resources (fixed cost rate + variable cost rate). american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 93 www.americanjournal.org 8. distribution of activity costs to products: in this step, the activities costs are distributed to the products, but we will first identify the triggers of activities so that loading rates are extracted. table (9) shows the causes of activities and loading rates as follows: table 9 identification of costs and causes of activities row activities costs triggers of activities unit activity load rate 1 production management 17،678،600 planned production volume 220,983 80 2 communications 13،494،675 number of hours 7,464 1,808 3 handling 9،310،750 number of handling meals 2,395 3,888 4 operating 63،798،099 number of operating hours 2,305 27,678 5 transport 26،046،450 number of hours 13,877 1,877 6 storage 9،310،750 number of orders for disposal and receipt of materials 2,363 3,940 7 packaging 71،190،399 number of batches of total production 18,486 3,851 source: table of the researchers' preparation based on results and data provided by the company. in table (9) activities (production department, communications, handling, operation, transportation, storage, packaging) and their own costs were identified. activity costs were obtained through table (8), the reasons for the activities through an interview with the specialists of the company in question, and the activity load rate through the following formula: loading rate = costs allocated in the activity complex ÷ the cause of activity. in order to be a basis for charging costs to the purpose of the cost (s), and after determining the causes and rates of activities, the costs of activities are apportioned to the products, as in table (10) below: distribution of activity costs to product table 10 source: table prepared by researchers based on the results product name unit centiliter activity research & development transport, dispatches and communicati ons other service supplies total production management contacts handling operating transport storage packaging barzlon 15897 1،237،248.74 944،448.38 651،688.328 4،464،921.25 1،822،921.77 651،580.551 4،982،239.91 619،983 1،033،305 381،528 16،789،865 janden 16357 1،273،050.11 971،777.197 670،545.763 4،594،119.45 1،875،670.33 670،434.866 5،126،407.38 637،923 1،063،205 392،568 17،275،701 samavekol 18303 1،424،505.49 1،087،389.99 750،320.909 5،140،684 2،098،819.72 750،196.818 5،736،298.49 713،817 1،189،695 439،272 19،330،999 methadine 19402 1،510،039.64 1،152،682.11 795،373.778 5،449،355.35 2،224،842.93 795،242.238 6،080،733.39 756،678 1،261،130 465،648 20،491،725 methadine n 17607 1،370،336.45 1،046،040.3 721،788.79 4،945،201.51 2،019،008.83 721،669.42 5،518،166.83 686،673 1،144،455 422،568 18،595،908 nazordin 0.5 15709 1،222،616.88 933،279.206 643،981.376 4،412،118.52 1،801،363.66 643،874.874 4،923،319.3 612،651 1،021،085 377،016 16،591،306 new dixon 14470 1،126،186.66 859،669.626 593،189.287 4،064،125.96 1،659،286.53 593،091.185 4،535،007.33 564،330 940،550 347،280 15،282،717 nassovrin 19900 1،548،798.51 1،182،268.53 815،789 5،589،226.44 2،281،948.99 815،654.083 6،236،810.36 776،100 1،293،500 477،600 21،017،696 zankou slaf 19580 1،523،893.21 1،163،257.17 802،670.785 5،499،349.44 2،245،254.33 802،538.039 6،136،519.95 763،620 1،272،700 469،920 20،679،723 timosam 0.25 18004 1،401،234.59 1،069،626.26 738،063.574 5،056،705.17 2،064،533.15 737،941.513 5،642،589.63 702،156 1،170،260 432،096 19،015،206 timosam 0.5 18603 1،447،854.21 1،105،213.13 762،619.234 5،224،943.71 2،133،220.95 762،493.112 5،830،320.76 725،517 1،209،195 446،472 19،647،849 cyprosam 0.3 17075 1،328،931.39 1,014،433.92 699،979.757 4،795،780.99 1،970،126.71 699،863.994 5،351،434 665،925 1,109،875 409،800 18،046،151 dixon 16240 1،263،904.11 964،589.19 664،739.41 4,561,567.21 1,849,452.10 666,169.31 5,090,551.67 633،360 1,055،600 389،760 17،139،693 total 227147 17,678,600 13،494،675 9،310،750 63,798،099 26،046،450 9،310،750 71،190،399 8،858،733 14,764,555 5,451,528 239،904،539 american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 94 www.americanjournal.org table 10 shows the share of each of the products of the eye drops section in total indirect industrial costs, which are the sum of each of the following activities (production management, communications, handling, operation, transportation, storage, packaging) and distributed to the products using loading rates and cause of activities according to the following formula: product share of costs = loading rate * cause of activity. total resources (research &development, transport, dispatches, communications, other service supplies) the share of the product's resource costs was determined by the quantity of the product. the share of the rate for the cost of research and development (39), transportation, dispatches, communications (65) and other service supplies (24), as shown in table (6), was apportioned to the products by the following formula: the share of the product in costs = the quantity of the product * the total rate of the resource pool. 9. allocation of costs according to the method of accounting for resource consumption: in this step, the actual costs realized are compared with the costs apportioned according to the method of accounting for resource consumption for the purpose of determining the cost and proportion of idle energy, which represents the difference between actual and distributed costs, as shown in table 11 below: table (11) determination of the costs and proportion of idle energy resource pool actual realized costs (1 ) apportioned costs (2 ) idle energy (1-2=)3 ratio of idle power (3 /1 ) indirect materials pool 24,140,736 24,128,000 12,736 0،000527 indirect work pool 157,105,480 94,068,520 63,036,960 0.40 driving force pool 67,343,050 53,686,360 13,656,690 0,20 equipment 7,950,178 7,302,303 647,875 0,08 research & development 11,397,421 8,858,733 2,538,688 0,22 maintenance services 7,436,401 6,600,300 836,101 0,11 administrative and marketing expenses 32,823,415 25,044,240 7,779,175 0,24 transport, dispatches and communications 18,984,000 14,764,555 4,219,445 0,22 other service accessories 7,090,397 5,451,528 1,638,869 0,23 total 334،271،078 239،904،539 94,366,539 0,28 table: researchers' preparation based on results. in table 11, the ratio and costs of idle energy at the level of each resource pool are determined by the following formula: unemployed energy value = actual realized costs distributed costs. ratio of inactive energy = value of inactive energy ÷ actual realized costs. table 11 shows the total proportion of idle energy (28%), and these costs will not be charged to the product because these costs are the costs of inactive resources and have not been used in production. 3. 2. comparison between the traditional system and the method of accounting for resource consumption: the actual indirect industrial costs in the traditional system (334,271,078 dinars), as shown in table 11, are therefore the share of the product in indirect industrial costs according to the following formula: the share of the product = indirect industrial costs ÷ the total quantity of products. (334,271,078 ÷ 227,147 = 1472 dinars) the indirect industrial costs apportioned in the method of accounting for resource consumption (239,904,539) were as shown in table 10. therefore, the share of the product in the indirect industrial costs is: (239,904,539 ÷ 227,147 = 1056 dinars) american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 95 www.americanjournal.org thus, the difference between the traditional system and the method of accounting for resource consumption is: (1472-1056 = 416), noting that the reason for the reduction in indirect industrial costs to this level is the result of the application of the resource consumption accounting method in the company in question. 3. 3. evaluation of the performance of the responsibility and decision-making centers: to implement the performance appraisal process, there must be a set of criteria that can guide the evaluation of the performance of the company's responsibility centers, so that they are appropriate to the nature of the activity of each responsibility center. the criteria for evaluating the cost position are the elements of the costs controlled by the responsibility center, which are: 1. direct material cost: this cost deviations are assessed by comparing actual material with standard during a significant period. 2. direct wage cost: employment efficiency is assessed by comparing actual wage cost to standard over a significant period of time. 3. indirect industrial cost and efficiency is measured by comparing the actual of them to the standard during a significant period. thus, the cost criterion depends on cost deviations to judge performance in order to better judge the centers’ performance and effectiveness, the cost measurement in these centers and the standard adopted must be more accurate, at this stage, the reports required by the performance appraisal process are prepared. performance reports are the cost centers as outputs of the responsibility accounting system as they contain accounting, financial and normative data for various direct and indirect cost centers, the deviations between the actual and planned performance of the centers of responsibility reflect the demonstration of the responsibility center officials' skill in using the powers and responsibilities conferred upon them. 1. measuring performance according to the traditional system: the performance of the head of the eye drops department is measured according to the traditional system of the company by matching the actual costs (direct materials, direct wages, indirect industrial costs), as shown in the table (2) and table (11), measured by the traditional system with the planned costs obtained by meeting the specialists of the company in question, to extract the value and ratio of deviations, as shown in the report shown in table (12) below: table 12 report of the head of the eye drops department according to the traditional system statement actual scheme deviations ratio of deviation direct material 378،498,056 350،600،000 (27،898،056 ) un-preferred 8 % direct wages 258،674،050 234،000،000 (24،674،050 ) un-preferred 11 % indirect industrial costs 334،271،078 211،000،000 (123،271،078 ) un-preferred 58 % total 971،443،184 795،600،000 (175،843،184) un-preferred 22 % source: table of the researchers' preparation based on results and data provided by the company. american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 96 www.americanjournal.org in table 12, the ratio and value of deviations are measured according to the following equations: the value of deviations (preferred or not preferred) = actual costs planned costs. the ratio of deviations was extracted through the following formula: ratio of deviations = value of deviations ÷ planned costs. from the report shown in table 12, it is clear that the performance of the chief of the eye drops section, relying on the traditional system of cost allocation, is not at the required level, because the value and percentage of deviations are high, especially the deviation of indirect industrial costs, because the traditional system is unable to allocate costs accurately and fairly. 2. measuring performance according to resource consumption accounting method: the performance of the head of eye drops department is measured according to resource consumption accounting method by matching actual costs (direct materials, direct wages, indirect industrial costs), as shown in the table (2) and table (10), as measured by the method of accounting for resource consumption against planned costs, to extract the value and ratio of deviations, as shown in the report shown in table (13) below: table 13 report of the head of the eye drops department according to the method of accounting resource consumption statement actual scheme deviation deviation percentage direct material 378،498,056 350،600،000 (27،898،056 ) un-preferred 8% direct wages 258،674،050 234،000،000 (24،674،050 ) un-preferred 11% indirect industrial costs 239،904،539 211،000،000 (28،904،539 ) un-preferred 14% total 877،076،645 796،600،000 (81،476،645 ) un-preferred 10% source: table of researchers' preparation based on results and company data. from the report shown in table 13, it is clear that the performance of the chief of the eye drops section, relying on the method of accounting for resource consumption in allocating indirect industrial costs, has changed from that of the traditional system, because the value and percentage of deviations has changed by the decrease after the value of deviations for indirect industrial costs in the traditional system (123,271,078) its proportion (58%) has become (28,904,539) and its proportion (14%), and the performance of the director of this section is thus judged better than in the past by relying on the deviations outlined in the reports. thus, after the findings, the hypothesis was accepted that differing deviations according to the method of accounting for resource consumption had an impact on the effectiveness of accountability. 4. conclusions the method of accounting for resource consumption from important cost management systems is the result of its ability to track inactive energy for the purpose of reducing its ratio. the method of accounting for resource consumption from important cost management systems is also a result of its ability to provide information that helps detect deviations at an early time, thus allowing managers to take corrective action american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 97 www.americanjournal.org or exploit available opportunities. as well as providing information according to the method of accounting for resource consumption, it helps measure deviations that contribute to rationalizing management's decisions. deviations after the use of resource consumption accounting method (10%), while deviations before the application of resource consumption accounting method (22%), this information directs management to make decisions in order to judge the effectiveness of the company's responsibility positions. the unemployed energy ratio was 28%, an information that helps the company's management to dispose of it or exploit it to improve performance. based on the findings, there is a need to develop the traditional system of the company in question, which is no longer commensurate with today's business environment. as well as the need to take advantage of the application of resource consumption accounting in the company in question in order to manage costs because it provides information that helps detect deviations and thereby increase the effectiveness of the company's responsibility positions and reduce costs. finally, the method of accounting for resource consumption should be applied in the company in question, as it is working to provide information to the company's management on inactive energy with a view to 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cost deviations model under the application of resource consumption accounting entrance: pilot study, master's thesis, faculty of commerce, alexandria university, egypt. 16. al-naimi, isra youssef thanoun (2021), impact of the application of resource consumption accounting in cost reduction and performance control: proposed model at ibn al-ether teaching hospital, master's thesis, faculty of management and economics, mosul university, iraq. sources in foreign language 1. bhimani, alnoor, horngren, charles t., datar, srikant m., rajan, madhav, 2015, management and cost accounting, business & economics – management, version 10. 2. okoye, emma i., 2009, improvement of managerial performance in manufacturing organizationsan application of responsibility accounting. journal of the management sciences, vol. 9, no. 1, pp 1-17. 3. obeid, maytham nema ,2021, resources consumption accounting for a rational production costs: a case study. akkad journal of contemporary accounting studies,vol. 1, no. 2, pp 133-151. 4. okutmus, ercument, 2015, resource consumption accounting with cost dimension and an application in a glass factory. international journal of academic research in accounting, finance and management sciences, vol. 5, no. 1, pp 46-57. 5. liu, yijuan, & wang, ting, 2017, management accounting tools and application cases--resource consumption accounting method and application, 3rd international conference on humanities and social science research (ichssr 2017) (pp. 402-408). atlantis press american journal of business management, economics and banking volume 18 nov., 2023 p a g e | 99 www.americanjournal.org 6. fowzia, rehana, 2011, use of responsibility accounting and measure the satisfaction levels of service organizations in bangladesh. international review of business research papers, vol. 7, no. 5, pp 53-67. 7. hassoon, l. n. (2018), the role of performance focused activity based costing (pfabc) in the institutional excellence/field study on babylon bank. tikrit journal of administration and economics sciences, 14(44 part 1). 8. jasim, a. n., hussein, a. i., & hassoon, l. n. (2018). the impact of narrative disclosure on the firm value: empirical evidence from the iraqi banking sector. opcion, 34(86), 2312-2325. 9. hasson, l. n. (2017). the role of accounting information technology in the rationalization of administrative decision. journal of kirkuk university for administrative and economic sciences, 7(1). american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 257 www.americanjournal.org the relationship between using artificial intelligence methods in developing digital marketing at the oil marketing company researcher: israa abdel hussein issa, imam ja’afar al-sadiq university, baghdad, iraq israa.abid86@gmail.com dr. hussein muhammad saad, american university of culture and education, lebanon huosseinsaad@yahoo.com a b s t r a c t k e y w o r d s the study aimed to demonstrate the relationship of the use of artificial intelligence in developing digital marketing at the oil marketing company, by applying this study to the employees of the (somo) oil marketing company, and on an innovation consisting of 120 people at the (somo) oil marketing company in an intentional manner. the use was used description analytical, a statement regarding the variables of the study must be excluded, and it will be distributed to the colored figures of the study, and it will be compiled, analyzed, and the hypotheses for the study will be tested through the use of the statistical packages program (spss), where it has been communicated that: there is a statistically significant relationship between artificial intelligence in the development of digital marketing. there is a statistically significant relationship between the diversity in the use of social media in marketing in the development of digital marketing, and the existence of a statistically significant relationship between the diversity in digital advertising in the development of digital marketing, in addition to the existence of a statistically significant relationship between the diversity of aftersales services in the development of digital marketing, and the existence of a statistically significant relationship between the use of e-mail in the development of digital marketing. artificial intelligence marketing digital oil marketing company. introduction technology is considered the best tool in our present world, which is constantly changing to meet the needs of the future, advance any society, and ensure the well-being and happiness of individuals (hajjaj, 2021, p. 21). in light of the successive developments of modern technological means used in american journal of business management, economics and banking volume 20 january, 2024 p a g e | 258 www.americanjournal.org organizations, the organization no longer relies on the traditional use of needs in the workplace. technology has easily made room for communication within organizations, and has worked to improve their management and work to upgrade and advance them towards a new and better institutional reality based on advanced technology, the most important of which is artificial intelligence. the great technical development contributes to the increasing role of artificial intelligence in the development of various sectors including marketing (al-joboy, 2020, p. 26). marketing based on artificial intelligence can contribute to improving brand positioning, the relationship with customers, and advertising, that is, in almost all aspects of marketing. similar to the competencies that are relied upon in manufacturing and controlling quality errors (al-hawamdeh, 2019). marketing with artificial intelligence is done by relying on artificial intelligence to collect customer and company data and use this data to implement things that a person or group cannot implement. artificial intelligence can improve marketing campaigns and customer journeys, as well as attract, nurture, and convert potential customers into business customers (al-fagi, 2012, p12). despite the technical progress in artificial intelligence methods, and its importance in developing the field of electronic marketing, and what artificial intelligence methods can provide in terms of collecting and classifying customer data (bosnan, 2012, p14), identifying needs and creating effective means of communication that lead to quality marketing. digital marketing in the (somo) oil company is the subject of the current study, as the researchers noticed the weakness of the electronic marketing methods in the company, and the lack of use of artificial intelligence methods, which confirms the importance of the study and thus the problem of the study appeared. objectives of the study the study aims to identify the relationship between the use of artificial intelligence methods in developing digital marketing at the oil marketing company, through: -learning about the relationship between the variable artificial intelligence and the development of digital marketing identify the relationship between the variable use of social media in marketing and the development of digital marketing identify the relationship between the digital advertising variable and the development of digital marketing -recognizing the relationship between variable after-sales services and digital marketing development identify the relationship between the variable use of email and the development of digital marketing. the importance of studying -the importance of this study is due to the modernity in the use of artificial intelligence methods in general, and in digital marketing in particular, which makes it a focus of interest for the student and researcher, and the study aims to know its effects, aspects of its application, and aspects associated with it. especially since artificial intelligence is one of the elements of the future of marketing in the present time. -the results of the current study benefit oil company in finding a modern way to develop its digital marketing. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 259 www.americanjournal.org -the current study benefits researchers to benefit from the research point and develop their scientific research in the field of artificial intelligence and digital marketing. the problem of the study based on what was mentioned in the introduction to the study regarding the narration of the importance of artificial intelligence and development in digital marketing, and what the researchers observed of the increasing interest in digital marketing in the field of marketing through reviewing published research and periodicals that dealt with the variables of the current study, and based on prior knowledge of the importance of the marketing process in companies. which is used to increase the effectiveness and success of marketing, by exploiting time, and providing all interaction and communication procedures at all time periods, which can be achieved through means of artificial intelligence. therefore, the problem of the study is to know the impact of means of using artificial intelligence in developing digital marketing at oil company in iraq. the problem of the study can be represented by answering the following main question: what is the relationship between using artificial intelligence methods in developing digital marketing at oil marketing company? study questions from the main question that was posed above in the problem of the study, several sub-questions are branched out: -what is the relationship of the artificial intelligence variable in the development of digital marketing? -what is the relationship of the variable of using social media in marketing to the development of digital marketing? -what is the relationship of the digital advertising variable in the development of digital marketing? -what is the relationship of the after-sales service variable in the development of digital marketing? -what is the relationship of the variable use of email to the development of digital marketing? study hypotheses the study hypotheses were formulated as follows: main hypothesis: there is a statistically significant relationship between the dimensions of the means of using artificial intelligence and the development of digital marketing at the oil marketing company. the following sub-hypotheses branch out from the main hypothesis: the first sub-hypothesis: there is a statistically significant relationship between the artificial intelligence variable in the development of digital marketing the second sub-hypothesis: a statistically significant relationship was found between the variable of using social media in marketing and the development of digital marketing the third sub-hypothesis: there is a statistically significant relationship between the digital advertising variable in the development of digital marketing -the fourth sub-hypothesis: there is a statistically significant relationship between the after-sales services variable in the development of digital marketing the fifth sub-hypothesis: there is a statistically significant relationship between the variable of using email in developing digital marketing american journal of business management, economics and banking volume 20 january, 2024 p a g e | 260 www.americanjournal.org study approach the current study followed the descriptive analytical approach, which aimed to identify methods of artificial intelligence methods in developing digital marketing. it also used a survey of a sample of employees of the oil marketing company on digital marketing and its development. study population the study population consists of employees of the oil marketing company the study sample the study sample consisted of 120 employees of the oil marketing company in a purposive manner. data collection tool data for the study was collected through a special questionnaire that was designed based on previous studies. study model the relationship model between the study variables was built according to the following: figure 1: the relationship between the study variables source: prepared by the researchers based on previous studies (hajtaj, 2021), (salah, 2020). independent variable dependent variable dimensions of artificial intelligence digital marketing artificial intelligence use of social media digital advertising after-sales service use email american journal of business management, economics and banking volume 20 january, 2024 p a g e | 261 www.americanjournal.org the concept of artificial intelligence: artificial intelligence refers to systems that mimic human intelligence to perform tasks and that can improve themselves based on the information they collect. it is related to the ability to think superiorly and analyze data more than it is related to a specific place or function. it is also used in a number of tasks, which process natural languages to understand customers and allow them to ask questions and obtain information. these robots can also learn over time so that they can add greater value to customer interactions. and also understand customer problems faster and provide more efficient answers (dimitris, 2019, p12). the concept of digital marketing: the concept of electronic marketing is one of the new and innovative concepts in the world of marketing. it is noted that its concept has a kind of ambiguity. this is due to the belief that marketing only takes place through the internet. this reason confirms the importance of giving an accurate definition of electronic marketing through marketing and its functions via all digital technologies, and there are those who believe that electronic commerce is electronic marketing (dan, 2019, p12). applied study study approach the current study falls within the framework of descriptive survey studies that aim to identify the relationship between the use of artificial intelligence methods in developing digital marketing at the (somo) oil marketing company on a sample of the company’s employees specializing in marketing. the questionnaire was used as a study tool to collect data, classify it, analyze it, interpret it, and draw conclusions. reliability using cronbach's alpha method the researchers calculated the alpha coefficient for each scale used in the study in order to test the reliability of these scales. table no. (1) shows the values of the cronbach's alpha coefficient. table no. (1): alpha coefficient for each scale used in the study variables the value of cronbach's alpha coefficient number of paragraphs dimensions of artificial intelligence artificial intelligence variable 0.604 5 social media use variable 0.845 5 digital advertising variable 0.751 5 after-sales service variable 0.816 5 email usage variable 0.714 5 source: prepared by the researchers based on the outputs of the statistical program (spss). the table above indicates that all cronbach's alpha reliability values for the variables of the study tool were greater than 0.6, which means a high degree of reliability and validity of the content of the study variables. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 262 www.americanjournal.org description of the study sample the researchers determined some features of the study sample’s vocabulary using statistical standards, as follows: table no. (2): characteristics of the study sample type the number % gender male 79 68.8 % females 41 34.2 % job position president 2 1.7 % vice president 4 3.3 % head of the department 14 11.7 % employee 100 83.3 % years of experience from 1 to 5 years 24 20 % from 6 years to 10 years 51 42.5 % from 11 years to 15 years 15 12.5 % from 16 years and over 30 25 % source: prepared by the researchers based on the outputs of the statistical program (spss). results of descriptive statistics for the study variables the two researchers described the opinions of the study sample with regard to all study variables, and statistical analyzes were conducted on the collected data to prove some of the relationships that serve the research, using the statistical package program spss, represented by the standard deviation, the arithmetic mean, the relative importance, and the item score and its level. results of the descriptive statistics of the opinions of the study sample regarding the variable artificial intelligence table no. (3): artificial intelligence variable number of paragraphs standard deviation mean result level relative importance rank 1 i deal with social media easily 0.871 4.08 agree high 81.6 % 3 2 i have the ability to interact with interactive chatbots 0.843 4.06 agree high 81.2 % 4 3 i have the ability to use search engines to obtain information 0.721 4.28 agree high 85.6 % 1 4 use e-mail to receive and send information 0.693 4.20 agree high 84% 2 5 oil marketing company provides its services and assistance through the website 0.849 4.03 agree high 80.6 % 5 source: prepared by the researchers based on the outputs of the statistical program (spss). the data presented in the table above show that the highest arithmetic mean is for paragraph (3), which states: “i have the ability to use search engines to obtain information,” as its value reached american journal of business management, economics and banking volume 20 january, 2024 p a g e | 263 www.americanjournal.org (4.28), and its standard deviation represents (0.721), and it was the result of the opinions of individuals the study sample agreed with the content of the paragraph, and the importance percentage was (85.6%), and its level was high. while the lowest arithmetic mean is for paragraph (5), which states: “the oil marketing company provides its services and assistance via the website,” where its value was (4.03), and its standard deviation represented (0.849), and the result of the opinions of the study sample members was agreement to the content of the paragraph was (80.6%) important, and its level was high. results of the descriptive statistics of the opinions of the study sample regarding the variable of using social media in marketing table no. (4): the variable of using social media in marketing number of paragraphs standard deviation mean result level relative importance rank 1 i have an account on facebook, twitter and instagram 0.784 3.92 agree high 78.4% 5 2 i love engaging with social media 0.803 4.17 agree high 83.4% 3 3 i am interested in following product announcements through social media 0.830 4.32 agree high 86.4% 2 4 i am interested in communicating at any time through social media 0.769 4.33 agree high 86.6% 1 5 use social media to advertise products 0.818 4.11 agree high 82.2% 4 source: prepared by the researchers based on the outputs of the statistical program (spss). the data presented in the table above show that the highest arithmetic mean is for paragraph (4), which states: “i am interested in communicating at any time through social media.” its value reached (4.33), and its standard deviation represented (0.830), and it was the result of the opinions of individuals. the study sample agreed with the content of the paragraph, and the importance percentage was (86.4%), and its level was high. while the lowest arithmetic mean is for paragraph (1), which states: “i have an account on facebook, twitter, and instagram,” where its value was (3.92), and its standard deviation was (0.784), and the result of the opinions of the study sample members was agreement with the content of the paragraph, the importance percentage was (78.4%), and its level was high. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 264 www.americanjournal.org results of the descriptive statistics of the opinions of the study sample regarding the digital advertisements variable table no. (5): digital advertising variable number of paragraphs standard deviation mean result level relative importance rank 1 i am interested in publishing advertisements through the media 0.822 4.28 agree high 85.6 % 1 2 the creative design in the advertisement attracts attention 0.710 4.02 agree high 80.4 % 4 3 advertising products through electronic applications attracts more attention than traditional advertisements 0.952 4.21 agree high 84.2 % 3 4 (somo) oil marketing company allocates a sufficient budget for digital advertising 1 3.98 agree high 79.6 % 5 5 i can determine the target groups in digital advertising 0.957 4.22 agree high 84.4 % 2 source: prepared by the researchers based on the outputs of the statistical program (spss). the data presented in the table above show that the highest arithmetic mean is for paragraph (1), which states: “i care about publishing advertisements through the media,” as its value reached (4.28), and its standard deviation represented (0.822), and the result of the opinions of the study sample members was the percentage of approval on the content of the paragraph was (85.6%), and its level was high. while the lowest arithmetic mean is for paragraph (4), which states, “the (somo) oil marketing company allocates a sufficient budget for digital advertising,” as its value reached (3.98), and its standard deviation represents (1), and the result of the opinions of the study sample members was agreement with the content. paragraph, the importance percentage was (79.6%), and its level was high. results of the descriptive statistics of the opinions of the study sample regarding the after-sales services variable table no. (6): after-sales services variable number of paragraphs standard deviation mean result level relative importance rank 1 i can provide after-sales services at any time through the website 0.944 4.18 agree high 83.6 % 2 2 we communicate with the customer on an ongoing basis 1 4.04 agree high 80.8 % 4 3 (somo) oil marketing company is interested in training employees on digital marketing through electronic applications 0.922 4.13 agree high 82.6 % 3 4 (somo) oil marketing company uses an automated customer response method to provide direct support to the customer 1 3.97 agree high 79.4 % 5 5 the oil marketing company website contains a database of all clients 0.900 4.22 agree high 84.4 % 1 source: prepared by the researchers based on the outputs of the statistical program (spss). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 265 www.americanjournal.org the data contained in the table above show that the highest arithmetic mean is for paragraph (5), which states, “the oil marketing company’s website contains a database of all customers,” as its value reached (4.22), and its standard deviation represented (0.9), and it was the result of opinions the members of the study sample agreed with the content of the paragraph, and the importance percentage was (%), and its level was high. while the lowest arithmetic mean is for paragraph (4), which states, “the (somo) oil marketing company uses an automated response method to the customer to provide direct support to the customer,” where its value was (3.97), and its standard deviation represents (1), and it was the result of the opinions of the sample members. the study aimed to agree on the content of the paragraph, and the importance percentage was (79.4%), and its level was high. results of the descriptive statistics of the opinions of the study sample regarding the variable of using e-mail table no. (7): email usage variable number of paragraphs standard deviation mean result level relative importance rank 1 (somo) oil marketing company has an email account 1 4.03 agree high 80.6% 4 2 i use e-mail in advertising 1 4.02 agree high 80.4% 5 3 you can respond to customers and send announcements via email in an automated manner 1 4.09 agree high 81.8% 2 4 interests in digital marketing among company members are increasing 0.995 4.05 agree high 81% 3 5 email helps you see all the latest news from oil marketing company quickly and easily 1 4.13 agree high 82.6% 1 source: prepared by the researchers based on the outputs of the statistical program (spss). the data presented in the table above show that the highest arithmetic mean is for paragraph (5), which states: “e-mail helps to see everything new at oil marketing company quickly and easily,” as its value reached (4.13), and its standard deviation represents (1), the result of the opinions of the study sample members was agreement with the content of the paragraph, and the importance percentage was (82.6%), and its level was high. while the lowest arithmetic mean is for paragraph (2), which states, “i use e-mail for advertising,” as its value reached (4.02), and its standard deviation represents (1). the result of the opinions of the members of the study sample was agreement with the content of the paragraph, and it was the percentage of importance was (80.4%), and its level was high. testing the study hypotheses this study carried a main hypothesis and five sub-hypotheses branched out from it. they were all investigating the relationship between the dimensions of the means of using artificial intelligence and the development of digital marketing. in order to examine the study’s hypotheses, automated american journal of business management, economics and banking volume 20 january, 2024 p a g e | 266 www.americanjournal.org processing was relied upon using the statistical package system (spss), and using the pearson statistical method, which resulted in the following results: main hypothesis test: there is a statistically significant relationship between the dimensions of the means of using artificial intelligence and the development of digital marketing at the oil marketing company. table no. (8): correlation coefficient between dimensions of artificial intelligence and digital marketing development variables correlation coefficient value statistical significance result dimensions of artificial intelligence 0.000 significant at 0.01 artificial intelligence variable 0.932 social media use variable 0.934 digital advertising variable 0.973 after-sales service variable 0.966 email usage variable 0.958 source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between at the significance level of 0.01, and with a correlation coefficient estimated at (0.932), for the artificial intelligence variable, and (0.943) for the social media use variable, (0.973) for the digital advertising variable, (0.966) for the after-sales services variable, and (0.958) for the email use variable. testing the first sub-hypothesis: there is a statistically significant relationship between the artificial intelligence variable in the development of digital marketing table no. (9): correlation coefficient between the artificial intelligence variable and digital marketing development variables correlation coefficient value statistical significance the result artificial intelligence variable 0.943 0.000 significant at 0.01 digital marketing source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above, it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between the artificial intelligence variable and digital marketing development at the significance level of 0.01, with a correlation coefficient estimated at (0.943). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 267 www.americanjournal.org testing the second sub-hypothesis: there is a statistically significant relationship between the variable of using social media in marketing and the development of digital marketing table no. (10): correlation coefficient between the variable of using social media and the development of digital marketing variables correlation coefficient value statistical significance result social media use variable 0.880 0.000 significant at 0.01 digital marketing source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above, it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between the variable of using social media and the development of digital marketing at the significance level of 0.01, with a correlation coefficient estimated at (0.880). testing the third sub-hypothesis: there is a statistically significant relationship between the digital advertising variable in the development of digital marketing table no. (11): correlation coefficient between the digital advertising variable and digital marketing development variables correlation coefficient value statistical significance result digital advertising variable 0.973 0.000 significant at 0.01 digital marketing source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above, it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between the digital advertising variable and the development of digital marketing at the significance level of 0.01, with a correlation coefficient estimated at (0.973). testing the fourth sub-hypothesis: there is a statistically significant relationship between the after-sales services variable in the development of digital marketing table no. (12): correlation coefficient between the after-sales services variable and digital marketing development variables correlation coefficient value statistical significance result after-sales service variable 0.966 0.000 significant at 0.01 digital marketing source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above, it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between the after-sales services variable and digital marketing development at the significance level of 0.01, with a correlation coefficient estimated at (0.966). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 268 www.americanjournal.org testing the fifth sub-hypothesis: there is a statistically significant relationship between the variable of using email in developing digital marketing table no. (13): correlation coefficient between the variable of using email and the development of digital marketing variables correlation coefficient value statistical significance result email usage variable 0.958 0.000 significant at 0.01 digital marketing source: prepared by the researchers based on the outputs of the statistical program (spss). from the table above, it is noted that the probability value (0.000) is less than (0.01), and therefore there is a statistically significant relationship between the variable of using email and the development of digital marketing at the significance level of 0.01, with a correlation coefficient estimated at (0.958). conclusion it is evident from the above results 1-there is a statistically significant relationship between the dimensions of the means of using artificial intelligence and the development of digital marketing at the oil marketing company. 2-there is a statistically significant relationship between the variable artificial intelligence in the development of digital marketing 3-there is a statistically significant relationship between the variable of using social media in marketing and the development of digital marketing 4-there is a statistically significant relationship between the digital advertising variable in the development of digital marketing 5-there is a statistically significant relationship between the after-sales services variable in the development of digital marketing 6-there is a statistically significant relationship between the variable of using email in developing digital marketing 7a large number of employees use the internet and its applications, meaning that they have an increased desire for this field, which prompts marketers to deal with the internet because it is a positive and effective market, easy to use and available to many users. 8-the importance of using data and information and what is easily provided by artificial intelligence methods, which are useful in digital marketing that can be collected and obtained through social media. 9attention is paid to digital advertisements for products, which draw the attention of users to (somo)’s products through creative publishing and design. artificial intelligence methods help speed up the publication of advertisements and create an atmosphere of effective communication. 10artificial intelligence means achieve the most important principles of digital marketing quality through after-sales service, as artificial intelligence means provide automatic response features that allow communication at any time and from anywhere, which achieves interactivity. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 269 www.americanjournal.org recommendations based on the above results, the researchers recommend the following: 1-work more on using the dimensions of artificial intelligence in developing digital marketing at the oil marketing company. this is of great importance in reaching correct marketing decisions. 2-focus on using artificial intelligence methods to use search engines to obtain information about the oil marketing company. 3developing the skills of employees at the (somo) oil marketing company with the aim of dealing with artificial intelligence methods to a large extent. this would work to program the work of employees in a technological manner that qualifies them to deal with modern methods more effectively. 4linking the process of applying artificial intelligence methods and developing digital marketing in the (somo) oil marketing company, in a way that strengthens the various administrative levels in the company. 5holding several workshops on the dimensions of artificial intelligence and development of digital marketing at the (somo) oil marketing company, as well as asking employees to prepare research and studies related to this to increase the application of the dimensions of artificial intelligence in the company. 6-the need to pay more attention to the practice of applying artificial intelligence methods in order to develop marketing strategies. references 1-alfagi, a. (2012). artificial intelligence and expert systems, dar al thaqafa publishing and distribution, jordan 2-al-hawamid, tharwat, (2019), the impact of artificial intelligence in creating the correct strategic thinking for the entrepreneurial leaders of business organizations to reach the added value of their strategic operations, jerash university, volume 21. 3al-jobuwi, siham, (2020), the impact of using artificial intelligence technology in the e-learning environment on developing future thinking skills and academic achievement in science among middle school female students, tabuk university journal for humanities and social sciences, university of tabuk, no. 9. 4-brosnan, f. (2012). business intelligence: what works where in b2b digital marketing. journal of direct, data and digital marketing practice, 14 (2), 154-159 5-dan dumitriu, mirona ana-maria popescu (2019): artificial intelligence solutions for digital marketing, university politehnica of bucharest, faculty of entrepreneurship, business engineering and management, splaiul independentei 313 6-dimitris c gkikas1 and prokopis k theodoridis(2019): artificial intelligence (ai) impact on digital marketing research, university of patras, seferistr. 2, 30100 agrinio, greece dgkikas@upatras.gr. 7hajjaj, ismail, (2021), the impact of using artificial intelligence methods on the development of digital marketing, al-madaniyah higher institute for management and technology, volume 12, issue 4. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 1 www.americanjournal.org strategic planning in industrial enterprises yusupxodjaeva gulchexra baxadirxodjaevna kholmukhamedova feruza areslanbekovna tashkent state technical university islam karimov university, universitetskaya, 2a, tashkent, 100095 gulchehra378@gmail.com a b s t r a c t k e y w o r d s the article is devoted to the issues of strategic planning in industrial enterprises, including its role in improving efficiency and competitiveness in a market economy. the main stages and methods of strategy development, features of choosing the optimal strategy and its adaptation to changing environmental conditions are considered. special attention is paid to the assessment of economic feasibility and risks in strategic planning. the paper also presents theoretical foundations, methods and approaches that can be applied to implement strategic planning in enterprises of uzbekistan. production potential, innovative economy, industrial enterprises, strategic development, use assessment, global financial crisis, production growth, investment resources, competitiveness, economic growth, material resources, labor resources, technological potential, managerial potential. introduction world experience shows that the transition to an innovative economy requires the most complete realization of the production potential at industrial enterprises and its strategic development. of particular importance is the assessment of the use of productive potential in the context of the global financial crisis. improving the use of production capacity at each enterprise will help to increase production, attract investment resources and expand the sale of goods. today, among the countries of the world, there is a clear correlation between highly competitive industrial and production potential and efficient economic growth. among the leading countries are china – 28.4% of world industrial production, the united states-18%, western europe 15 %, india-3%1. in recent years, in our republic, special attention has been paid to the development of a strategy for the development of industrial and production potential and its involvement in the production and economic activities of an industrial enterprise, the formation of an appropriate system and mechanism for managing production potential are tasks of paramount importance for ensuring the efficiency of using available resources and the effectiveness of industrial capacity building. 1http://www2.deloitte.com/content/dam/deloitte/global/documents/manufacturing/gx-global-mfg-competitiveness-index2021.pdf american journal of business management, economics and banking volume 29 october 2024 p a g e | 2 www.americanjournal.org the level of innovative development of each industry depends on the share of strategic and periodic innovators who shape long-term technological trends and determine competitiveness in national and global markets. strategic innovators gain sustainable competitive advantages, such as intellectual rent, maximum value added, and high valuation of the company's assets by financial markets. the predominance in the economy or in a particular industry of companies focused primarily on the adaptation and modification of technologies proposed by leaders can ensure a satisfactory level of current competitiveness in national markets, but does not guarantee success in global competition and long-term sustainable development of national producers. the need to develop a comprehensive system for increasing the production potential of an enterprise of the electrotechnical complex in order to develop a strategy for its development determines the relevance of the topic of this study. the production potential of an industrial enterprise is a key factor determining its efficiency, competitiveness and ability to adapt to changing market conditions. it represents the totality of all the material, labor, technological and managerial resources that an enterprise has at its disposal for product production. key components of productive capacity 1. material resources include buildings, equipment, raw materials, and materials that are used to produce products. the quality and condition of the material and technical base have a direct impact on production volumes, prime cost, and the quality of final products. 2. labor resources представляютrepresent the company's personnel, their professional skills, qualifications, and level of motivation. efficient use of labor resources helps to increase labor productivity and improve the financial performance of the enterprise. 3. technological potential includes the technologies used and the degree of their innovativeness. the higher the technological level of an enterprise, the more efficiently it can organize production, reduce costs and improve product quality. 4. managerial potential the ability of the company's management to effectively plan, organize and control production processes. well-organized management contributes to the optimal use of all resources and increases the overall efficiency of the enterprise. the role of productive capacity 1. ensuring the sustainable functioning of the enterprise production potential ensures the fulfillment of the main tasks of the enterprise: product output, customer satisfaction, and profit generation. the higher the level of production potential, the more opportunities the enterprise has for stable operation and development. 2. increasing competitiveness effective use of production potential allows the company to reduce the cost of production, improve its quality and expand the range, which gives it advantages in the market. american journal of business management, economics and banking volume 29 october 2024 p a g e | 3 www.americanjournal.org 3. adaptation to changes in the external environment an enterprise with a high production potential is able to quickly respond to changes in market conditions, introduce new technologies and types of products, which ensures its sustainability in the long term. 4. innovative development the production potential determines the capabilities of the enterprise to introduce innovations and develop new areas of activity. modern technologies and qualified personnel make it possible not only to improve current production processes, but also to create new products and services. 5. investment attractiveness enterprises with high production potential are more attractive to investors. the ability to use resources efficiently and increase production capacity increases the confidence of external partners and creditors. production potential is the basis for successful operation of an industrial enterprise. its effective use allows not only to improve current production indicators, but also to create a reserve for future growth and development. in today's competitive environment and rapid technological progress, production capacity management plays a key role in ensuring the competitiveness and sustainability of the enterprise in the market. anda graphic illustrating the role of productive capacity in the activities of an industrial enterprise. it shows key elements such as material and human resources, technological and managerial potential, and their impact on competitiveness, innovation, and adaptation to change. the structure of the production potential of an enterprise includes all the resources and opportunities that the enterprise has to perform production activities. these elements are interrelated and complement each other, determining the overall efficiency of the enterprise. let's consider the main components of the production capacity structure. the production potential of an enterprise consists of many interrelated elements that together determine its production capabilities and efficiency. proper management of each of these components allows the company to achieve high results and remain competitive in the market. figure 2. the essence of the production potential management process american journal of business management, economics and banking volume 29 october 2024 p a g e | 4 www.americanjournal.org production capacity, being a dynamic system, requires management. the organization of management of the production potential of an industrial enterprise includes a set of measures aimed at coordinating the actions of management personnel in order to effectively involve and use the material, technical, labor and information resources of the enterprise in the production process, ensuring the achievement of set goals and effective activities. this article covers a wide range of issues related to strategy interpretation, strategic planning methods, choosing the best strategy, and evaluating its economic feasibility and risks. the paper attempts to theoretically generalize existing views, concepts, methods and approaches to strategy planning, in order to develop a unified approach to the methodology of strategy formation. the presented material contributes to the formation of basic knowledge in the field of strategic planning through the disclosure of methodological and practical aspects of this process, which, in turn, should contribute to the dissemination of knowledge and facilitate the implementation of strategic planning in enterprises of uzbekistan. references: 1. decree of the president of the republic of uzbekistan no. pf-158 dated 11.09.2023 2. ansoff i. strategicheskoe upravlenie [strategic management], moscow: ekonomika publ., 1989. 3. bolshakov s. v. enterprise finance:theory and practice.textbook. m.:book world. 2005 4. yusuphodjaeva gulchehra bahadirkhodjaevna автореферат https://api.ziyonet.uz/uploads/books/10000014/4knhl5b0obufpuc.pdf 5. khusainov ravshan rakhimovich evolution of privatization and deputy of state in the industrial sector of uzbekistan world economics & finance bulletin (wefb) available online at: https://www.scholarexpress.net vol. 21, april 2023 issn: 2749-3628 in volume 21 of the "world economics & finance bulletin " scholar express journals, berlin germany, april, 2023. 6. allaeva g.j. problems of formation and innovative potential use of fec enterprises in uzbekistan editor coordinator, 2021. https://ojs.ukrlogos.in.ua/index.php/interconf/article/view/8540 7. yusupkhodjaeva, g. b.. (2023). development of a unified digital transport and logistics intelligent platform based on the national operator. in e3s web of conferences (vol. 461, p. 01055). edp sciences. 8. otabek, a., & otabek, b. (2023, january). alternative energy and its place in ensuring the energy balance of the republic of uzbekistan. in aip conference proceedings (vol. 2552, no. 1). aip publishing. https://doi.org/10.1063/5.0117633. https://api.ziyonet.uz/uploads/books/10000014/4knhl5b0obufpuc.pdf https://ojs.ukrlogos.in.ua/index.php/interconf/article/view/8540 american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 17 www.americanjournal.org strategies for advancing green logistics in uzbekistan: opportunities and challenges karrieva yakutjan karimovna professor of the department of business management, doctor of economics, tashkent state university of economics tashkent, uzbekistan a b s t r a c t k e y w o r d s green logistics has emerged as a critical area for sustainable development worldwide, and uzbekistan is no exception. given the growing environmental concerns and uzbekistan's strategic position in central asia, implementing green logistics practices could significantly reduce emissions, improve energy efficiency, and enhance economic resilience. this article examines the opportunities and challenges associated with advancing green logistics in uzbekistan, highlighting strategic approaches for integrating sustainable practices into the country's logistics sector. by analyzing policy frameworks, technological innovations, and infrastructure needs, this study identifies the key factors that could drive green logistics in uzbekistan and discusses potential obstacles to successful implementation. ultimately, a sustainable logistics strategy can contribute to uzbekistan’s environmental goals while promoting long-term economic growth. green logistics, uzbekistan, sustainable development, environmental impact, logistics strategy, energy efficiency, infrastructure. introduction the logistics sector plays a significant role in the global economy, facilitating trade, enabling efficient supply chains, and connecting markets. however, logistics also contribute substantially to environmental degradation, with high levels of emissions, waste generation, and energy consumption. as nations around the world commit to reducing their carbon footprints, green logistics, which emphasizes environmentally friendly practices in transportation, warehousing, and supply chain management, has become an essential focus of development (mangan et al., 2016). for uzbekistan, advancing green logistics could align with its sustainability objectives and position the country as a key player in sustainable trade within central asia. uzbekistan’s unique geographical location between europe and asia makes it a vital logistics hub with growing potential for green logistics. however, transitioning to greener practices involves addressing a range of challenges, including outdated infrastructure, limited access to clean technology, and the high cost of implementing environmentally friendly solutions. this article explores the strategies that could help uzbekistan advance green logistics and examines the opportunities and challenges associated with each approach. american journal of business management, economics and banking volume 30 november 2024 p a g e | 18 www.americanjournal.org main part 1. overview of green logistics and its importance green logistics refers to sustainable practices aimed at reducing the environmental impact of logistics operations. these practices include reducing emissions, minimizing waste, improving fuel efficiency, and using renewable resources wherever possible. the primary goals of green logistics are to lessen the ecological footprint of logistics activities and to support the broader agenda of sustainable development (rodrigue et al., 2020). for uzbekistan, adopting green logistics can also enhance economic competitiveness, reduce dependency on fossil fuels, and meet rising international standards for sustainable business practices. 2. opportunities for advancing green logistics in uzbekistan a. strategic geographical location uzbekistan’s location as a landlocked country situated between major economies like china and russia makes it a natural trade route for eurasian logistics. this strategic position allows uzbekistan to play a pivotal role in promoting sustainable, green logistics practices within central asia, which could attract eco-conscious investors and trade partners (jones & serebryanikova, 2019). b. growing policy support for sustainable development uzbekistan has made strides in implementing sustainability-focused policies, particularly in renewable energy and environmental management. government initiatives such as the “green economy” program and targets for reducing greenhouse gas emissions are creating a favorable environment for the adoption of green logistics (world bank, 2021). these policies encourage businesses to implement environmentally friendly practices, which could drive advancements in the logistics sector. c. availability of renewable energy sources uzbekistan possesses abundant resources for renewable energy, especially solar power. the integration of renewable energy into logistics operations—such as powering warehouses and charging electric vehicles—could significantly reduce the carbon footprint of the logistics industry (asian development bank, 2020). solar energy, in particular, presents a viable option for sustainable logistics, given uzbekistan’s high average annual sunlight hours. d. potential for technological innovations adopting modern technologies, such as iot (internet of things), blockchain, and ai, can optimize logistics operations, reduce waste, and improve efficiency. technologies that enhance route optimization, reduce fuel consumption, and support sustainable supply chain management practices are becoming increasingly accessible, even in emerging economies like uzbekistan (ellram et al., 2019). 3. challenges in implementing green logistics in uzbekistan a. outdated infrastructure uzbekistan’s logistics infrastructure, including roads, railways, and warehousing facilities, requires significant upgrades to meet the standards of green logistics. outdated infrastructure often results in inefficient transportation systems that consume more fuel and produce higher emissions. investments american journal of business management, economics and banking volume 30 november 2024 p a g e | 19 www.americanjournal.org in modernizing logistics facilities and incorporating eco-friendly designs are crucial but represent a considerable financial burden (sirimongkolsiri & yeo, 2021). b. high initial costs of green technologies implementing green technologies—such as electric vehicles, fuel-efficient trucks, and energy-efficient warehousing systems—requires substantial capital investment. given the high upfront costs, many logistics companies in uzbekistan may be reluctant to adopt these technologies. financial incentives, subsidies, or low-interest loans could play a vital role in encouraging green investments in the logistics sector (chen et al., 2018). c. limited awareness and expertise there is a limited understanding and expertise related to green logistics practices within uzbekistan. companies may lack knowledge about the benefits and operational strategies required to implement green logistics effectively. awareness campaigns, education programs, and training initiatives are needed to equip industry professionals with the skills and knowledge to advance green logistics practices (wu & dunn, 2020). d. regulatory and policy gaps although uzbekistan has established some environmental policies, the regulatory framework for green logistics remains underdeveloped. effective green logistics requires policies that set clear standards, promote transparency, and incentivize sustainable practices. developing a robust regulatory framework could provide the necessary support for green logistics to flourish in uzbekistan (rodrigue, 2020). 4. strategies for advancing green logistics in uzbekistan a. developing sustainable infrastructure investing in sustainable infrastructure, such as energy-efficient warehouses, green transport corridors, and clean fuel stations, is essential for green logistics. public-private partnerships (ppps) can facilitate these investments, distributing the financial burden and fostering collaboration between government and private sector stakeholders (diabat & govindan, 2019). moreover, optimizing existing infrastructure to support alternative energy use would reduce the environmental impact of logistics operations. b. encouraging the adoption of clean technologies incentivizing the adoption of clean technologies, such as electric vehicles, smart logistics software, and renewable energy systems, is crucial. the government can promote these technologies by offering tax benefits, subsidies, and favorable financing options to logistics companies. for instance, electric vehicles can be used in urban logistics to reduce emissions, particularly for last-mile delivery (carter et al., 2018). c. integrating digital innovations digital innovations, such as iot, data analytics, and ai, offer substantial benefits for optimizing logistics operations and reducing waste. iot can enhance visibility across supply chains, allowing companies to monitor emissions and track energy use. additionally, ai-powered route optimization american journal of business management, economics and banking volume 30 november 2024 p a g e | 20 www.americanjournal.org can reduce fuel consumption by identifying the most efficient paths for transportation (mangla et al., 2020). d. implementing policy and regulatory measures the government can introduce policies that set emissions standards, encourage renewable energy use, and promote waste reduction practices. regulatory measures, such as mandatory emissions reporting and eco-certification for logistics firms, could foster accountability and motivate businesses to adopt sustainable practices (mangan & lalwani, 2021). establishing partnerships with international organizations could also provide uzbekistan with insights into global best practices for green logistics. e. educating and training stakeholders building awareness and expertise in green logistics is essential for long-term progress. educational initiatives, such as workshops, certification programs, and knowledge-sharing platforms, could equip industry professionals with the skills needed to implement and maintain green logistics practices. collaboration with international organizations and universities could also help bridge the knowledge gap (elkington & smallman, 2020). conclusion advancing green logistics in uzbekistan presents both opportunities and challenges. while the country’s strategic location and growing support for sustainable development offer significant potential, challenges such as outdated infrastructure and high implementation costs need to be addressed. by focusing on sustainable infrastructure, clean technologies, digital innovations, supportive policies, and education, uzbekistan can lay a foundation for greener logistics. embracing these strategies could not only reduce environmental impacts but also improve economic resilience and attract environmentally conscious investment. ultimately, a commitment to green logistics aligns with uzbekistan’s vision for sustainable growth and positions the country as a regional leader in sustainable development. references 1. asian development bank. (2020). renewable energy in central asia. adb publications. 2. carter, c., ellram, l., & tate, w. (2018). sustainable supply chain management. journal of business logistics, 39(2), 110-125. 3. chen, j., lee, j., & kim, d. (2018). costs and benefits of green technologies in logistics. international journal of logistics research, 12(3), 78-91. 4. diabat, a., & govindan, k. (2019). public-private partnerships for sustainable infrastructure in developing economies. journal of cleaner production, 234, 920-929. 5. elkington, j., & smallman, c. (2020). educating for sustainability: the role of universities in green logistics. higher education quarterly, 74(1), 62-75. 6. ellram, l., mangan, j., & lalwani, c. (2019). logistics and supply chain management in the era of sustainability. journal of transport geography, 85, 120-132. 7. jones, m., & serebryanikova, s. (2019). central asia’s role in eurasian trade and sustainable development. world economic forum report. american journal of business management, economics and banking volume 30 november 2024 p a g e | 21 www.americanjournal.org 8. mangan, j., & lalwani, c. (2021). sustainable logistics management: strategies for green supply chains. logistics & transport management journal, 7(4), 80-95. 9. rodrigue, j-p. (2020). the geography of transport systems. routledge press. 10. sirimongkolsiri, s., & yeo, g. (2021). transport infrastructure modernization for sustainable logistics in emerging economies. journal of infrastructure development, 13(3), 311-328. 11. wu, x., & dunn, s. (2020). the role of awareness and training in implementing green logistics practices. sustainability, 12(9), 3769. 12. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392. 13. абдуллаев, а. к. (2023). роль транспортной дипломатии в развитии внешнеторговых маршрутов республики узбекистан. постсоветские исследования, 6(3), 315-323. 14. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 15. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 16. abdullaev, a. (2017). transport aspect of cooperation within sco. international relations: politics, economics, law, 2017(2), 11. 17. abdullaev, a. k. the peculiarities of the use of the special lexis. тошкент2021, 23. 18. палванова, у. б. (2024). значение формирования навыков оказания первой помощи у студентов в не медицинских образовательных учреждениях. periodica journal of modern philosophy, social sciences and humanities, 27, 93-98. 19. палванова, у., якубова, а., & юсупова, ш. (2023). ультразвуковое исследование при спленомегалии. talqin va tadqiqotlar, 1(21). 20. якубова, а. б., & палванова, у. б. проблемы здоровья связанные с экологией среди населения приаралья мақола научно-медицинский журнал “авиценна” выпуск № 13. кемерово 2017г, 12-15. 21. азада, б. я., & умида, б. п. (2017). проблемы здоровья связанные с экологией среди населения праралья. авиценна, (13), 12-14. 22. степанян, и. а., изранов, в. а., гордова, в. с., белецкая, м. a., & палванова, у. б. (2021). ультразвуковое исследование печени: поиск наиболее воспроизводимой и удобной в применении методики измерения косого краниокаудального размера правой доли. лучевая диагностика и терапия, 11(4), 68-79. 23. stepanyan, i. a., izranov, v. a., gordova, v. s., beleckaya, m. a., & palvanova, u. b. (2021). ultrasound examination of the liver: the search for the most reproducible and easy to operate measuring method of the right lobe oblique craniocaudal diameter. diagnostic radiology and radiotherapy, 11(4), 68-79. 24. матмуратов, к. ж. (2023). разработка методов лечения нейроишемической формы диабетической остеоартропатии при синдроме диабетической стопы. american journal of business management, economics and banking volume 30 november 2024 p a g e | 22 www.americanjournal.org 25. бабаджанов, б. д., матмуротов, к. ж., моминов, а. т., касымов, у. к., & атажанов, т. ш. (2020). эффективность реконструктивных операций при нейроишемических язвах на фоне синдрома диабетической стопы. 26. бабаджанов, б. д., матмуротов, к. ж., саттаров, и. с., атажанов, т. ш., & саитов, д. н. (2022). реконструктивные операции на стопе после баллонной ангиопластики артерий нижних конечностей на фоне синдрома диабетической стопы (doctoral dissertation, rossiya. кисловодск). 27. бабаджанов, б. д., матмуротов, к. ж., атажанов, т. ш., саитов, д. н., & рузметов, н. а. (2022). эффективность селективной внутриартериальной катетерной терапии при лечении диабетической гангрены нижних конечностей (doctoral dissertation, узбекистон. тошкент.). 28. duschanbaevich, b. b., jumaniyozovich, m. k., saparbayevich, s. i., abdirakhimovich, r. b., & shavkatovich, a. t. (2023). combined endovascular interventions for lesions of the peripheral arteries of the lower extremities on the background of diabetes mellitus. journal of biomedicine and practice, 8(3). american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 5 www.americanjournal.org islamic finance and its implementation to our country yusufov isfandiyor teacher of tashkent state university of economics a b s t r a c t k e y w o r d s the article covers islamic finance, its place in the world market, islamic financial instruments, aspects different from traditional financing. also, an analysis of the practice of capital market development based on islamic finance in developed and developing countries was carried out. having studied the experience of foreign countries, proposals were made on the development of organizational mechanisms for the development of the capital market through islamic finance in our country. islamic finance, deposit, sukuk, capital market, joint-stock companies. introduction recently, developed and developing countries want to ensure the integration of the islamic financial system and its instruments into their financial system, which is rapidly developing and conquering the world financial environment more and more reliably, and the number of researches on this topic is also increasing. the number of organizations and institutions operating in the islamic financial system is constantly increasing, and in non-islamic developed and developing countries, financial instruments of this type are actively developing their activities. the activities of islamic financial institutions are becoming more diverse and complex [1]. the opportunities, potential and powers of islamic financial organizations to organize and support large operations are expanding. in the era of increasing globalization and the background of global crisis, the stable growth of islamic finance is increasing the interest of non-islamic countries. today, the islamic economy is a sector whose main products are under the structural influence of islamic ethics and legislation. the islamic finance sector is one of the fastest growing sectors in the world. islamic finance is used in more than 50 countries of the world. currently, the total assets of more than 1,500 islamic financial institutions operating around the world exceed 2.5 trillion dollars. for information, the islamic finance network is developing rapidly all over the world today and is one of the directions that includes innovative financing mechanisms. in 2024, the total assets of islamic financial institutions are projected to reach 3.7 trillion dollars [2]. american journal of business management, economics and banking volume 24 may 2024 p a g e | 6 www.americanjournal.org the stock market is one of the most important sectors that should be developed in the economy of uzbekistan, and its main activity should be focused on increasing the volume of money circulation and issuing new products, for example, sukuk, green bonds and other products [3]. 2. literature review the prohibition of riba (interest) in islam has been in force since 1400 and islamic banking has emerged only in the last 15 years. from the point of view of the development history of the islamic bank, it is necessary to note the uniqueness of the emergence of such a financial institution in malaysia [4]. the islamic financing model involves the sharing of risk between the lender and the borrower. the bank receives a part of the profit under the loan agreement, not the loan interest. for small enterprises, such a financing model, which involves the sharing of risks between the borrowing enterprise and the lending bank, is attractive [5]. at the initial stage of development, enterprises need external sources of financing and their financial capabilities due to the minimum stability and financial strength of companies. in times of economic instability and crisis, it is more desirable for small and medium-sized businesses to use islamic tools, as it reduces the risk of bankruptcy [6]. also, u. yuldasheva, s. narimonov and sh. bolibekov studied the tax base of islamic financial organizations [7]. j.khoshimov and others in their researches noted that in the context of increasing modernization processes, it is appropriate for the state’s to implement different types of financial market models to achieve sustainable growth [8]. 3. research methodology in this article, comparison, synthesis, logical and comparative analysis of research, economic analysis, deduction, calculation of quantity and quality indicators, statistical processing method by comparing them with each other, and scientific abstraction are discussed in this article. 4. analysis and discussion of results the term "islamic finance" was coined in the mid-1980s. islamic finance is described by many developed countries as an interest-free financial system. in the first formative period (622–661 ad), the principles of islamic finance were used by the arabs living in the arabian peninsula. even prophet muhammad (pbuh) traded according to these principles before his revelation. their first wife, our mother khadija, traveled to the country of sham (now syria) with her goods to trade. they hired assistants based on a profit-sharing contract. in islam, this type of contract, called "mudaraba", is still used today. also, during this period, musharakah (another contract based on the distribution of profits), zarraflik (the practice of exchanging different currency units), murabaha (trade), representative contracts (transferring a debt from one person to another) were developed. at the same time, financial relations based on riba, i.e. interest, were on the rise at that time. after the revelation to our prophet muhammad, first of all, the use of riba was prohibited. today, the islamic banking system has gained the greatest popularity among developed countries in the united states, as well as to some extent in great britain, germany and france. world-famous banks such as hsbc, deutschebank, citibank, bnp paribas, chaise manhattan bank, goldman american journal of business management, economics and banking volume 24 may 2024 p a g e | 7 www.americanjournal.org sachs, jp morgan and others are opening islamic branches in their structures for financing, in order to serve not only muslim clients, but also local citizens. the first islamic bank in the west, islamic banking system (now islamic finance house), was established in luxembourg in 1978. many international and national banks are opening islamic branches in france and germany. among them are such well-known banks as deutsche bank ag, abn amro holding nv, societe generale sa and bnp paribas, bank sepah, iran, commerz bank, hsbc. at the same time, many countries of the cis, in particular, azerbaijan, kyrgyzstan, kazakhstan, tajikistan, turkmenistan, uzbekistan are members of the islamic development bank. due to the increasing demand, some muslim countries have accumulated large financial resources and this has caused the number of islamic financial institutions to spread widely in the world. it can be seen that as the oil-exporting countries earn significant profits, as the financial markets of islamic countries continue to develop, and as western companies compete to attract foreign investors, the current trends in the development of islamic banks will continue. all this gradually creates the necessary conditions for an in-depth study of the characteristics of islamic banks and their entry into the traditional financial markets. table 1. characteristics of islamic and traditional banks characteristics islamic banks traditional banks guaranteed payments on demand deposits available available guaranteed payments on investment deposits not available available interest rate on deposits not available specified and guaranteed the mechanism for determining the interest rate on deposits the profitability of the bank is determined by the profitability of investments it does not depend on the profitability of the bank participation of depositors in bank profits and losses available not available use of islamic financial products available not applicable the right of the bank to make a decision on granting a loan depending on the collateral with the participation of depositors in the profits and losses of an islamic bank, it often does not have the right to discriminate against customers based on their provision. always available understanding the principles of islamic banking is also important in ensuring financial stability. first, in order to ensure financial stability, traditional banks pay special attention to the development and expansion of their relations with islamic banks. secondly, the non-use of hedging instruments by islamic financial institutions leads to the accumulation of risks. analyzing the above, it is necessary to consider the main differences between islamic banks and conventional banks (table 1). the islamic capital market operates as a parallel (alternative) market to the traditional capital market and is implemented in ways that do not contradict the islamic religion. investing in shariah-compliant securities is not limited to muslims, as shariah-compliant securities also resonate in stock markets based on the traditional financial system. in general, all islamic capital market instruments and institutions must comply with the principles of sharia and not apply riba, use american journal of business management, economics and banking volume 24 may 2024 p a g e | 8 www.americanjournal.org al bay' (trade and commerce), avoid gharar in contractual agreements, prohibit maisir (gambling), refrain from producing prohibited goods (alcohol, pork, tobacco, etc.). sharia-compliant products currently available in the islamic capital market include: sukuk is a financing instrument used by companies or governments (issuers) to raise funds, and the underlying transaction is based on various shariah principles/contracts. sukuk investors are entitled to income/profits arising from the underlying transaction. in 2021, global sukuk issuance has been growing steadily for five consecutive years and reached $196.5 billion. although that's an 8.2 percent increase from $181.6 billion in 2020, the five-year average annual growth is 21 percent. after picking up issuance in early 2021, it began to slow in the second half of the year as the global economy began to recover and oil prices strengthened, reducing the need for sovereign debt in the main sukuk markets (figure 1). figure 1. sukuk issuance in international markets in 2018-2021 and the first quarter of 2022 (billion dollars) the total volume of sukuk issued in the first half of 2022 was $100.9 billion, down slightly from $104.2 billion a year ago. excluding a large $6 billion issuance from saudi aramco in 2021, issuance rose 2.6 percent. in early 2022, continued economic recovery and higher oil prices were forecast to reduce the need for sovereign debt in key sukuk markets in the gcc and southeast asia. although these developments did not significantly affect sukuk issuance in q1 2022, issuance slowed due to high interest rate hikes and high oil prices. the slowdown in the second quarter was largely the result of smaller issuance by the saudi government, whose financing requirements eased amid rising oil revenues. figure 2 shows the volume of sukuk issuance in the leading countries of islamic finance in 2018-2021 and the first quarter of 2022. 107 139.9 140.5 149.5 70.5 21.3 25.1 41.1 47 30.4 128.3 165 181.6 196.5 100.9 0 50 100 150 200 250 0 20 40 60 80 100 120 140 160 2018 2019 2020 2021 i q. 2022 emitted re-opened total american journal of business management, economics and banking volume 24 may 2024 p a g e | 9 www.americanjournal.org figure 3. leading countries in terms of sukuk issuance in 2018-2021 and the first quarter of 2022 (billion dollars) in 2021, sukuk were issued in international markets by companies located in 21 countries, among which malaysia totaled $72.6 billion, saudi arabia $49.9 billion, and indonesia $23.4 billion. these three countries accounted for 75 percent of sukuk issued in 2022 by issuers. malaysia maintained its usual lead in annual emissions, but was overtaken quarterly by saudi arabia in q4 2021 and q1 2022. malaysian issuers' sukuk fell by around $15 billion in each of these quarters, before corporate activity picks up in q2 2022 due to lower corporate issuance. malaysian-based issuers raised $34.8 billion in the first half of 2022, down 14 percent from the first half of 2021. saudi arabia's sukuk issuance activity slowed in the second quarter as the government reduced monthly domestic issuance. nevertheless, issuers based in saudi arabia raised $28.1 billion in the first half of 2022, up $3.9 billion from the same period in 2021. indonesia remains the third-largest issuance base, although domestic market activity is expected to fall from record levels in 2020 due to budget cuts and funding requirements. as pakistan's foreign reserves have been depleted by international debt repayments, the government has returned to the international sukuk market for the first time since the introduction of five-year sukuk in 2017. in january 2022, it raised $1 billion from the sale of seven-year sukuk on the sovereign eurobond market. the issue will carry 7.95 percent of interest payments to the government, the highest coupon rate offered in pakistan's history of sukuk borrowing in international markets. the sovereign was able to negotiate a rate cut from 8.25 percent to 8.375 percent, backed by long-term sustainable economic growth potential, improved energy sector performance and structural reforms to mobilize revenue. malayzia saudi arabia indonesia pakistan turkey 57.4 22.6 13.9 0.1 3 64.7 28.9 38 0.1 7.9 65.2 38 27.6 4.5 8.5 72.6 49.9 23.4 4 9.9 34.8 28.3 12.2 5.8 5.8 2018 2019 2020 2021 i q. 2022 american journal of business management, economics and banking volume 24 may 2024 p a g e | 10 www.americanjournal.org figure 4. sukuk issuance by issuer type in 2018-2021 and the first quarter of 2022 (billion dollars) a total of $21 billion is required in fiscal year 2022-23 to repay international debt and service existing debt, at least $15 billion to cover the current account deficit, and $1 billion to cover other financing needs. the $37 billion added to the existing debt burden limits pakistan's ability to raise debt. in figure 2.7, we analyze the sukuk issue in 2018-2021 and the first quarter of 2022 by issuer type. governments remain the main issuers of sukuk issuance, maintaining around 60 percent of global issuance since 2017. the volume of sovereign country sukuk issued in 2021 was $119.9 billion, of which 87 percent was issued by the governments of the gcc, malaysia and indonesia. these countries issued 83 percent of the total global sovereign issuance of $68.8 billion in the first half of 2022. the government of saudi arabia was the largest sovereign issuer in the first half of 2022, maintaining the position it gained in the third quarter of 2021. despite oil prices hitting their highest levels since the global financial crisis, the saudi government has stepped up issuance to meet strong demand for debt. in the first half of 2022, it raised $22.1 billion, and in march, a $7 billion sukuk is planned to be issued to consolidate domestic public debt as part of the country's sukuk program. the volume of corporate issuance in the first half of 2022 amounted to 19.9 billion dollars and decreased by 7.8% compared to the same period last year due to the rapid growth of interest rates. financial institutions typically account for the bulk of corporate sukuk issuance, which accounted for 65 percent of the global total of $38.1 billion in 2021. quasi-sovereign issues in the first half of 2022 almost halved compared to the same period last year and amounted to $12.2 billion. the difference is due to a slowdown in saudi aramco's $6 billion sukuk issuance in 2021 and islamic development bank's $1.6 billion sukuk issuance in q2 2022, linked to the first secured overnight financing rate (sofr). 77.6 98.6 108.4 119.9 68.8 27.8 38.4 43.5 40 19.9 22.8 28 29.6 36.5 12.2 2018 2019 2020 2021 i q. 2022 quasi-sovereign corporate sovereign american journal of business management, economics and banking volume 24 may 2024 p a g e | 11 www.americanjournal.org 5. conclusions and suggestions there are a number of key factors that contribute to the success of islamic banking and islamic investment products, which include: ‒ possibility of diversification of capital sources for economic development based on expanding the composition of banking market participants; ‒ existence of demand for islamic bank products due to the uniqueness of the ethnic composition of the population of our country; ‒ the need to strengthen the investment direction of lending in the economy of uzbekistan; ‒ the opportunity to use practical experience in changing traditional banking products in accordance with the principles of islamic banking. the following conclusions were formed regarding the development of islamic finance and its introduction to the capital market of our country: 1. opportunities for the development of islamic banking in uzbekistan are largely related to the difference in the market models of banking products. if the european model is mainly focused on short-term and medium-term financing, debt resale, then the islamic model, on the contrary, is important to create and support long-term cooperation with customers or introduce long-term financing of an investment nature. this is especially important considering the investment needs of our country's economy. based on the integration of european and islamic banking products into the banking system of uzbekistan, it is necessary to create the necessary conditions to meet not only short-term, but also long-term resource needs of the economy. in addition, customers who are not ready to use traditional banking products based on religious approaches can use islamic banking products. 2. our country has adopted a number of legal norms on the use of the islamic financial system and its tools. in particular, the decision of the president of the republic of uzbekistan dated march 5, 2019 "on measures to further expand and deepen partnership with islamic development bank group and arab coordination group funds" was adopted. according to the decision, it is decided to attract the consulting assistance of the islamic corporation for the development of the private sector within the framework of the development of the infrastructure of islamic financing in the banking sector of the republic of uzbekistan. 3. the decision of the cabinet of ministers dated may 23, 2019 "on measures to further develop cooperation with the itb group and the arab coordination group funds" also emphasized the further expansion of cooperation with the itb group and the arab coordination group . 4. in order to ensure the effective implementation of the above decisions, on august 22, 2019, "trustbank" jsc and the islamic corporation for the development of the private sector (icd) signed an agreement on "consultancy assistance". in accordance with this decision, it was planned to introduce "islam window" services into the banking system, and on january 10, 2023, the opening ceremony of "trust muamalat" llc, a subsidiary leasing company of "trustbank" jsc, was held. this event was attended by the management of "trustbank" jsc, the chief specialist of the advisory service department of the investment investment department of the islamic corporation for the development of the private sector, representatives of the public, and media workers. as noted, the main task of "trust muamalat" llc is to implement the strategy of expanding financial services by implementing effective "murabahah (nation trade)" and "ijara (leasing)" operations within the framework of the current legislation, as well as to expand cooperation with international islamic american journal of business management, economics and banking volume 24 may 2024 p a g e | 12 www.americanjournal.org financial institutions. the long-term successful cooperation of "trustbank" with the islamic development bank (itb) group allows "trust muamalat" llc to attract financing lines of itb corporations. in addition, this stage of development will encourage the company to finance projects of individuals, small and medium-sized businesses, expand their activities and create new jobs. references 1. ravshanbekovich h. j. a organizational and legal basis of islamic finance in uzbekistan: a comprehensive overview //holders of reason. – 2023. – т. 1. – №. 3. – с. 56-61. 2. атаниязов, ж. х., & алимардонов, э. д. халкаро молия муносабатлари» тошкент2014.уфмж., дарслик,279, 280. 3. ataniyazov j and sayfullokhon n. (2022) stock market in uzbekistan: current situation and development prospects, british journal of multidisciplinary and advanced studies: business and magament sciences, 3(1),1-10 4. хусейнова д. к., хусаинов м. к. теоретические основы исламского банкинга. бизнес в законе.: 2012. 265-269 стр. 5. e.baydaulet. islom moliya asoslari. т.o‘zbekiston nmiu.2019 y.23-bet. 6. беккин р.и. исламские финансовые институты и инструменты в мусульманских и немусульманских странах: особенности и перспективы развития: автореф. дис… докт. экон. наук. м., 2009. 7. yuldasheva u. a. et al. possibilities of using the experience of advanced foreign countries in determining and analyzing the tax potential of regions //galaxy international interdisciplinary research journal. – 2022. – т. 10. – №. 2. – с. 17-21. 8. хошимов, ж. р., б. б. очилов, and с. с. наримонов. "инвестиционная политика: теория и практика." (2024). 9. алимардонов э. мировые финансовые центры: современные теории и их значение в развитии национального финансового рынка //экономика и инновационные технологии. – 2015. – №. 3. – с. 141-150. 10. bakhtiyor o‘g‘li, o. b. (2023). theoretical aspects of investment attractiveness. american journal of technology and applied sciences, 10, 144-149. 11. шомуродов р. т., сейтниязов ш. к. проблемы увеличения долгосрочных финансовых ресурсов в коммерческих банках //молодой ученый. – 2020. – №. 23. – с. 459-463. 12. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). 13. ochilov, b. (2023). mamlakat iqtisodiyotini rivojlantirishda investitsion jozibadorlikni yaxshilash masalalari. iqtisodiyot va taʼlim, 24(1), 75-81. 14. шомуродов, р. т. (2021). опыт зарубежных стран в осуществлении монетарной политики. молодой ученый, (23), 443-449. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 42 www.americanjournal.org social and hygienic studies of the health of children born with high birth weight yuldasheva f.u. eshonkhodjaeva m. o. khojieva k. l., aliyev d. o. botirov o. sh. tashkent medical academy a b s t r a c t k e y w o r d s children born with high birth weight are of particular interest for sociohygienic research, since this factor can have a significant impact on their health and development. this abstract discusses the main aspects of social and hygienic research aimed at studying the health of such children. factors influencing the risk of having high birth weight children are considered, such as the financial situation of the family, the mother's lifestyle and the environment. the health implications of high birth weight for children at various stages of their lives are also discussed, including the risk of obesity, cardiovascular disease and other pathologies. children, newborns, overweight, pregnancy, hemolytic disease, overexposure, obesity. introduction the importance of such research lies in the possibility of identifying the causes and developing measures to prevent and reduce the risk of diseases in this group of children, which helps improve the quality and duration of their lives. studying overweight children can help understand the causes and mechanisms of development of this condition. this may include genetic factors, the mother's diet during pregnancy, family lifestyle, and other aspects. analysis of data on excess weight in newborns can help develop and implement effective strategies to prevent obesity and related problems in the future. studying overweight children contributes to increasing scientific knowledge about the effects of birth weight on children's health and development. thus, studying children born overweight is important for identifying risks and developing interventions to support their health and well-being. purpose of the study: to study the social and hygienic aspects of the health of children born with high birth weight american journal of business management, economics and banking volume 24 may 2024 p a g e | 43 www.americanjournal.org research objectives research into children born overweight may involve a variety of objectives aimed at understanding the causes, consequences and possible strategies to improve their health. below are some of the main objectives of such research: 1. determination of risk factors: the study aims to identify factors that may be associated with excess weight in newborns. this may include genetic, nutritional, sociocultural, lifestyle, and pregnancy-related factors. 2. study of environmental influences: determine the role of the environment, including nutrition, level of physical activity, access to health care and other factors, in the formation of birth weight and subsequent health of the child. 3. analysis of long-term consequences: assess the long-term effects of excess birth weight on child health and development, including the risk of obesity, diabetes, cardiovascular disease and other diseases. 4. development and testing of interventions: research may focus on developing and testing various interventions to prevent excess birth weight and its negative consequences, such as healthy eating programs for pregnant women or support programs for families with overweight children. 5. determination of mechanisms of action: research may also involve examining the biological mechanisms underlying the relationship between excess birth weight and subsequent child health. the goal of such research is to develop a better understanding of the problem of excess birth weight and develop effective strategies to prevent it and improve the health of children. object of study: children born with high birth weight in the tashkent region subject of research: features of nutrition, lifestyle, living conditions of the family that subsequently lead to bearing an overweight child materials and methods of research. the choice of the research object was determined by the fact that in the last couple of decades there has been an increase in the number of children who are born with an above-average weight, with higher height and indicators of physical development. the birth of a woman's baby weighing more than 4000 g is most often perceived positively by close relatives. according to the prevailing misconception in society, newborns with greater weight are healthier than their peers with normal weight. however, the scientific community, as well as obstetricians-gynecologists and pediatricians, unfortunately, agree on a different opinion. over the past decades, several epidemiological studies have been conducted on the relationship between high birth weight and the risk of developing bone tumors. a fetus with a body weight of 4 kilograms or more is characterized by modern neonatology as large. the birth of a baby within 4-5 kg is a large fetus, and the birth of a child above 5 kilograms is a giant fetus, which is always a pathological condition for a newborn. at the same time, body weight has a greater influence on determining whether a newborn is classified as overweight than height. among the factors in the development of this pathology are the following: improving the living conditions of women in labor; nutrition. american journal of business management, economics and banking volume 24 may 2024 p a g e | 44 www.americanjournal.org regarding pregnant women, overweight, obesity, and hormonal imbalances are increasingly common, which directly affects the metabolism of the fetus. it is important to note the correlation with improved health care. thanks to the technologies of modern embryology, the possibility of artificial insemination, and comfortable conditions in medical institutions, every year more and more women have the opportunity to become mothers. today, the birth of children over 4000 years old accounts for about 6-10% of all births. but the birth of children weighing more than 5000g is considered rare. to date, the largest child in the history of obstetrics is a 10.2 kg child born in 1955. it is important to distinguish between the concepts of prolonged pregnancy and true postmaturity. in the first case, significant harm is not caused to the fetus, only the time period increases, while true postmaturity leads to painful consequences. pregnant women who have diabetes mellitus of any form require special monitoring due to the frequent birth of children with high birth weights. such women must be hospitalized in the antenatal department of a specialized maternity hospital in advance, at about 32 weeks. at the medical institution, they undergo a comprehensive examination, and specialists determine the timing of the birth of the child. another dangerous reason for the formation of a large fetus is hemolytic disease of the newborn, or rather its edematous form. this is a serious pathology associated with the fact that the blood of the mother and fetus are incompatible by group or rh factor (rh conflict). this happens during pregnancy, when a rh-negative mother's fetus inherits rh-positive blood from the father. as a result, the mother's immune system launches mechanisms to fight against the fetal red blood cells, which causes massive disruption of blood oxygenation due to the destruction of red blood cells. it is important to understand the risks associated with pregnancy in rh-negative women. one of the most modern solutions is to prepare the mother’s body for pregnancy by transfusing small volumes of rh positive blood to prevent hemolytic disease. the most severe forms of hemolytic disease of newborns result in the formation of general swelling of the body, fluid accumulates in the newborn in all body cavities, the spleen and liver enlarge. a special place is occupied by women who are at risk due to obesity. high-carbohydrate diets are a common cause of nutritional edema due to a decrease in the intake of proteins responsible for oncotic pressure and fluid retention in the bloodstream. fig. 1 the most common reasons for the birth of overweight children ожирение, 60 гемолитическа болезнь , 5 сахарный диабет , 25 генетические заболевания, 5 переношеннос ть , 10 0 10 20 30 40 50 60 70 самые частые причины рождения детей с избыточным весом. american journal of business management, economics and banking volume 24 may 2024 p a g e | 45 www.americanjournal.org a passive lifestyle and lack of involvement in a physically active lifestyle also contribute to the development of deviations. improving health through adequate physical activity, training the immune and cardiovascular systems is one of the measures to prevent frequent complications. if a woman’s metabolism in the body is altered and the body is obese, there is a high risk of disrupting the fetal metabolism during pregnancy and, as a result, contributing to the birth of an overweight newborn. if a woman was overweight before pregnancy, she is allowed to gain no more than 7-8 kg during pregnancy. this is the weight that the baby itself, the placenta, uterus and water have. in this case, therapeutic diets are used that include all the nutrients necessary for the body in the correct ratio. regular moderate aerobic exercise in pregnant women leads to a decrease in body weight in the fetus and, ultimately, reduces the risk of obesity in the child after birth. on average, larger children are born in scandinavia, smaller ones in africa. this is due to climate characteristics and differences in nutrition, as noted earlier. fig.2. birth of overweight children in tashkent region in % the average weight of boys (3200–3500 g) is slightly greater than that of girls (3000–3250 g). firstborns are usually born lighter than second and third children in the family. according to the tashkent region of uzbekistan, the number of children born with excess weight in the period from 2019 to 2023 amounted to 14.5% in 2019, 14.8 and 15.2 in subsequent years, respectively, and reached 15.7% in 2022. in recent years, the number of overweight newborns has been increasing and, according to the latest data, reached 16.5% in 2023. conclusions summarizing the results of a study on the influence of intrauterine development on later life after birth, it was possible to prove that mothers who performed physical exercises throughout pregnancy that did not involve lifting weights, for example, exercise on an exercise bike, had children with lower weight. low weight of newborns reduced their susceptibility to excess weight in childhood and did not affect the development of insulin resistance in women. research suggests that genetic, nutritional, 13.5 14 14.5 15 15.5 16 16.5 17 2019 2020 2021 2022 2023 american journal of business management, economics and banking volume 24 may 2024 p a g e | 46 www.americanjournal.org sociocultural, lifestyle, and pregnancy-related factors may influence birth weight. preventative measures aimed at maintaining maternal health during pregnancy can play an important role in reducing the risk of overweight in newborns. research findings highlight the importance of developing and implementing interventions to prevent excess birth weight and improve child health. references 1. юлдашева ф.у. socio-hygienic study of the health of children born with high weight. international scientific journal isj &applied scince philadelphia, usa issue 11 volume 67 published november 30, 2018.. 2. юлдашева ф.у. & каримбаев, ш.д.совершенствование объективности оценки качества знаний студентов. 2014. 3. юлдашева ф.у., & тошматова, г.а. оказание медико-социальной помощи населению. журнал современная наука актуальные вопросы социально экономического развития. 2023;153-164. (in russ.). 4. шеркузиева, г. ф., саломова, ф. и., юлдашева, ф. у. токсичность “еp мaлхaми” при ингаляционном хроническом воздействии.материалы iv международной научнопрактической конференции «современное состояние фармацевтической отрасли: проблемы и перспективы. ташкент.2023; 287. 5. sherkuzieva, g. f., salomova, f. i. yuldasheva, f. u. oziq ovqat qo’shimchalari va aholisal omatligi.2023. «o‘zbekistonda vinochilik va sanoat uzumchiligi sohasining muammolari va ularning innovatsion yechimlari» respublika ilmiy-texnikaviy konferensiya ilmiy ishlar to ‘plami.2023;101-102 6. шеркузиева г.ф., саломоваф.и., юлдашева ф.у. результаты санитарно химических исследований воды. международный научно образовательный электронный журнал «образование и наука в xxi веке». 2023;35(2). 7. юлдашева ф.у. факторы риска развития злокачественных новообразований у детей. сборник научных трудов республиканской научно-практической конференции “профилактическая медицина: гигиеническая наука и практика”ташкент.2015; 87-89. 8. юлдашева ф.у., impact of cov.id-19 on education system in the world and in uzbekistan. in образование: прошлое, настоящее и будущее. 2020; 94-95). юлдашева ф.у. organization of work universities during the covid 19 pandemic. international conference, san francisco, california, usa. 2020; 9. юлдашева, ф. у., & имамова, а. о. роль спорта в формировании здорового образа жизни у молодежи. европейский международный журнал междисциплинарных исследований и управленческих исследований.2022; 2(11): 85-89. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 55 www.americanjournal.org world experience in overcoming foreign investment attraction and factors affecting foreign investment attraction olimbekov odilbek saidmurodovich tashkent state university of economics independent researcher of the department of valuation and investments a b s t r a c t k e y w o r d s the dynamics of indicators determining the role of investment in the development of the economy is analyzed. sources of financing investments directed at fixed capital have been considered. the factors influencing the attraction of foreign investment and world experience in eliminating them are also studied. investment, foreign investment, foreign experience, gross domestic product, foreign direct investment. introduction the socio-economic development of the republic of uzbekistan and its transformation into one of the most competitive countries of the world are directly linked with the ongoing investment policy aimed at increasing the investment attractiveness of individual enterprises in the country, the region and its economy. at the same time, it should be noted that the investment policy of the state includes a set of measures to be implemented for the development of priority sectors of the country's economy and the transition from centralized investment processes to decentralized investment processes. that means, in turn, reforms aimed at increasing investment attractiveness, which is the basis for the formation of favorable investment climate in the country, which plays an important role in attracting various types of investments. foreign investment is one of the main drivers of economic development and is of important importance for stabilizing the regional economy, job creation and innovative development. in the development of the regional economy, strategies for attracting foreign investment, as well as the issues of their impact and successful integration into the economy deserve special attention. this article analyzes the main methods of attracting foreign investment into the economy of the region and its economic significance. foreign investment is economic activities carried out in a country or region through funds, technology, knowledge or resources received from foreign countries or foreign companies, especially in industry, infrastructure, finance and other sectors. foreign investment helps modernize the economy, create new jobs, increase production efficiency, and integrate with international markets. effective organization of regional governance and economic policy is necessary to attract foreign investment. this process can be done through the following ways: tax incentives and other incentives: american journal of business management, economics and banking volume 32 january 2025 p a g e | 56 www.americanjournal.org in order to attract investment, it is necessary to provide tax breaks, lower tax rates in certain territories, or create various incentive mechanisms. this creates favorable conditions for foreign companies. investment environment: the investment environment and the stability of the legal and institutional framework are important factors in reassuring investors. there is a need to create a free and transparent system for foreign investors, to establish effective decision-making systems. infrastructure and logistics: infrastructure development, efficient operation of transport and communication systems play an important role in attracting foreign investment in the region. a well-developed logistics system makes it easier to get products to the international market. special economic zones and clusters: special economic zones and industrial clusters can be established to attract foreign investment. in such zones, it is easier to attract investment through tax incentives, affordable labor and infrastructure opportunities. foreign investment affects the regional economy in various ways: technological growth: foreign investment brings innovation and advanced technology, which helps to improve production efficiency, develop new industries, and increase export potential. job creation: foreign investment creates new jobs. this, in turn, will increase the employment rate of the region and increase the income of the residents. increase exports: foreign investment increases export potential. through the investment, regional industrial development can establish the production of quality products and produce products to new markets. economic stability: foreign investment provides economic stability as it brings additional income to the economic systems of a country and region through various sources and resources. analysis and results world practice and rich foreign experience confirm that countries undergoing a transition to a market economy will not be able to successfully integrate into the world economic community without forming a favorable investment environment and actively promoting foreign investment into the national economy. to this end, uzbekistan is taking measures to create real conditions for intensifying the process of attracting foreign investment into the country's economy. the significant year-on-year growth in the volume of investment in the economy allows it to inevitably show its positive results through an increase in the volume of national production. as a result of government attention and support for investment activity, the volume of gross domestic product (gdp) and the amount of investments gained growth. in particular, in the period 2019-2023, the volume of investments had an absolute growth rate. during these years, gdp increased by 1.58 times, and investments in fixed assets increased by 1.53 times (table 1). 1-table dynamics of indicators determining the role of investment in the development of the economy indicators 2019 year 2020 year 2021 year 2022 year 2023 year gross domestic product, billion uzs 511838,1 580203,0 734632,9 766956,7 809906,3 included in fixed capital investments, billion uzs 189924,3 210195,4 244963,3 266654,4 289876,8 construction works, in billions of soums 68854,4 37548,4 45802,7 49876,7 52876,1 external trade turnover (mln) usa. (dollars) 42177,8 36256 42072 45110 47408 exports, (mln. usa. (dollars) 17901,7 15102 16611 17987 18976 import, (mln. usa. (dollars) 24276,1 21154 25461 27123 28432 saldo, (mln. usa. (dollars) -6374,4 -6052 -8850 -9136 -9456 american journal of business management, economics and banking volume 32 january 2025 p a g e | 57 www.americanjournal.org the attitude and assessments of international and foreign experts and specialists to the implementation of an effective investment policy in our country testify to the correct and effective implementation of economic reforms of our country. 2table sources of financing of fixed capital oriented investments, amounted to millions of us dollars indicators 2020 year 2021 year 2022 year 2023 year growth in 2023 compared to 2020 (+,-) % investments in fixed capital 210195,4 244963,3 266654,4 289876,8 79681,4 137,9 including: centralized investments: 49876,2 54675,1 57123,2 61987,1 12110.9 124,3 budget funds 14897,1 18765,1 19321,1 19843,1 4946,0 133,2 state trust funds x x x x x x children's sports development fund x x x x x x foundation for the development of physical culture and sport 26,1 54,2 61,1 67,9 41,8 260,2 fund for development of water supply and sewerage systems 1234,1 1967,1 2156,1 2314,8 1080,7 187,6 fund for reconstruction and development 6734,1 8287,1 8402,2 8675,9 1941,8 128,8 loans under guarantee of the republic of uzbekistan 25437,1 32456,1 36761,3 39876,9 14331,9 156.8 decentralized investments: 160319,2 190288,2 209531,2 227889,7 67570,5 142,1 enterprise funds 43231,0 45342,3 46767,6 47878,6 46476,0 110,8 population funding 14567,2 18092,1 19786,2 21123,8 6556,6 145,0 foreign direct investment and credit 52432,1 59875,3 64985,1 69217,2 16785,1 132,0 loans and other debt of commercial banks 22134,0 27890,0 31879,0 34234,0 12100,0 154,7 this table, which reflects the structural structure by regions of the country and sources of financing investments directed to sectors of the economy, shows that positive changes have taken place in recent years. if we analyze the sources of financing investments directed at fixed capital in the republic of uzbekistan, the total volume of investments directed at fixed capital in 2020 amounted to 210195.4 million us dollars, and by 2023 amounted to 289876.8 million us dollars, which indicates that their volume in 2023 increased by 1.37 times. however, there are also a number of challenges in attracting foreign investment. these include: risks and uncertainty: political unrest, uncertainty of the legal system, or economic instability can be of concern to foreign investors. this has a negative impact on the influx of investment. limited infrastructure and resources: the availability of advanced infrastructure and resources in the region is important to attract investment. in some regions, these resource constraints make it difficult to attract foreign investment. local competition and industry specificity: foreign investors may also be affected by local competition and labor market problems. further optimization of the local economy is american journal of business management, economics and banking volume 32 january 2025 p a g e | 58 www.americanjournal.org necessary to create competitive conditions. the concept of the law "on investments and investment activities" says that uzbekistan is rapidly implementing tax policy and tax and tariff management reforms aimed at reducing the tax burden for investors and supporting a healthy competition environment. at the same time, the lack of support for investor initiatives at all levels, especially in the field, the lack of clear coordination of the activities of ministries and departments in this regard, the fact that there are still bureaucratic obstacles and obstacles, hinders the strengthening of confidence in the consistency of state policies to shape a favorable investment climate. the increasing number of new enterprises with the participation of foreign investment is the result of the great attention of the state to this area and the convenience provided to them. in this regard, one of the most important issues is economic stimulation of enterprises attracting foreign investment in our country and creating the necessary conditions for them. therefore, in order to intensify the attraction of foreign investment in our national economy, it is necessary to take the following measures: firstly, to constantly improve the regulatory and legal framework for attracting and developing investments, secondly, to develop additional measures to increase the investment attractiveness of the regions, and thirdly, to attract investment, industry that complies with international norms and conventions constant striving to create legal conditions that are recognized by investors in developed countries and the use of international best practices; fourth, it is necessary to reduce the impact of inflation on the value growth of investment projects, as well as to further increase the volume of foreign investment; fifth, attracting investment to the real sphere of production, that is, to sectors that process raw materials; sixth is to further improve the incentive system in order to create a more favorable investment climate for foreign investors, in particular, to reduce the tax burden and simplify the tax system even for investors; the seventh is to improve the system for the implementation of mutually beneficial projects with foreign economic entities and the creation of free investment economic zones with them; eighth, systematic industrial development by attracting investors to places where the infrastructure is available and favorable for development; ninth, strengthening efforts to attract long-term, low-interest foreign direct credit resources; tenth, based on foreign experience, creation of funds with state support of foreign investors. conclusion in conclusion, attracting foreign investment to the region's economy is an important aspect of the economic development of the country and the region, which plays a major role in innovation, job creation and ensuring economic stability. thus, the strength of political, economic and legal systems, infrastructure development and improvement of regional economic conditions are of particular importance in attracting foreign investment. thanks to the created conditions, it will be possible to increase the attractiveness for foreign investors and ensure economic stability. references 1. leventsev n.n., kostyunina g.m. international capital movement: investment policy of foreign countries: textbook. – moscow: economist, 2007. – 368 pages. 2. matraeva l.v., filatova y.m., erokhin s.g. foreign investments: textbook. moscow: dashkov and co, 2014. 248 pages. american journal of business management, economics and banking volume 32 january 2025 p a g e | 59 www.americanjournal.org 3. vakhabov a.v., khajibakiev sh.kh., muminov n.g. foreign investments. study guide. – t.: finance, 2010. 328 p. 4. karimov n.g. issues of introduction of market mechanisms for financing investment activities in the context of economic integration. – t.: science and technology, 2007. – 240 b. 5. нодирханов у.с. приямые иностранные инвестиции в узбекистане: опыт проблемы, перспективы роста. t.: "gan ve tekhnologi", 2011. 184 б. 6. gozibekov d, nosirov e. attracting foreign investments into the economy of uzbekistan. brochure. -t.: "economics and finance". 2007, -b.92. 7. mustafakulov sh.i. attractiveness of the investment climate. scientific and practical manual. – tashkent:bactria press, 2017.-320 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 35 www.americanjournal.org prospects for improving the efficiency of customs benefits to business subjects tukhsanov kudratillo nozimovich dsc., professor tashkent state university of economics a b s t r a c t k e y w o r d s the second important source of filling the budget is customs duties, and in the integration of the country's economy into the world economy, it is one of the most urgent issues to optimize the use of customs duties and benefits based on the requirements of the market situation, taking into account the experiences of foreign countries in this direction. based on the laws and regulatory documents adopted for the purpose of all-round support for enterprises producing competitive ready-made goods that substitute for imports, modernization of the economy, stimulation of technical and technological equipment, and improvement of the investment environment, a number of benefits have been granted to the participants of foreign economic activity. introduction regulation of the country's foreign trade activities through the preferential mechanism is one of the important areas of customs regulation. state prosperity is determined not only by the internal state of the economy, but also by the level of development of external economic activity and directly contributes to its sustainable economic growth. in terms of approaches to regulation of foreign economic activity, it should be noted that protectionist and free trade approaches are more developed in national and foreign practice. a total of 71.4 trillion was paid by the customs authorities to the goods imported during 2021 based on the rates set by the legislation. customs fees were calculated in the amount of soums (100%) . of this, 38.2 trln . soums (53.4%) were exempted from customs fees. below we can see the customs fees charged to the state budget by the customs authorities during the years 2011-2021 and the benefits granted to tif participants from customs fees ( table 1). american journal of business management, economics and banking volume 24 may 2024 p a g e | 36 www.americanjournal.org table 1 customs fees calculated by the customs authorities of the republic of uzbekistan in 2011-2021, transferred to the state budget, and benefits granted from them 1. years estimated amount (trln. soums) allowance given ( trln. soums ) transferred to the state budget ( trillion soums ) 2011 8,16 5.60 2.56 2012 11.40 7.70 3.70 2013 15.01 10.50 4.51 2014 17.51 11.80 5.71 2015 17.35 11.40 5.95 2016 19.03 13.40 5,63 2017 30,39 22,80 7,59 2018 60,27 48,77 11,50 2019 76,88 59,75 17,13 2020 65,48 40,76 24,72 2021 71,38 38,15 33,23 according to table 1, in 2021, the benefits from customs payments to foreign economic activity participants amounted to 38.15 trillion soms, the amount of funds transferred to the state budget was 33.23 trillion soms, and the benefits from customs payments were 1.1 times the amount of funds transferred to the state budget. in 2020, this indicator was 1.6 times higher, and in 2011, it was 3.0 times higher. there are the following shortcomings in the application of benefits and preferences for customs payments in the country: cases of formalization of goods by changing their code numbers according to the nomenclature of goods of foreign economic activity (tif tn) to privileged code numbers; cases of falsification of documents during registration of privileged goods; cases of artificially increasing and decreasing the price of preferential goods. the reason for the increase in benefits from customs fees was the modernization of production, localization programs and the increase in preferences for goods produced in countries that have established a free trade zone with our country. it is shown in table 2 that in the framework of the benefits from customs payments in uzbekistan, import customs duty 50.7%, vat 49.2%, excise tax 0.022%, and benefits from customs fees 0.06%. table 2 the composition of benefits applied for customs payments in 20212 indicators total benefits import duty excise tax vat customs fees the composition of benefits from customs payments ( trillion soums ) 38,15 19.35 0.008 18.77 0.022 the composition of benefits from customs payments ( in percent ) 100.0 50,72 0,02 49,20 0,06 1the author's work ( based on the data of the report of the state customs committee). 2the author's work ( based on the data of the report of the state customs committee). american journal of business management, economics and banking volume 24 may 2024 p a g e | 37 www.americanjournal.org widely uses tariff quotas (tariff preferences) for third countries . 3this benefit is provided on the basis of an agreement with non-union countries specializing in the production of raw materials, semifinished products and staple foods that are not sufficiently produced in the country. the lowest rate applies when imported within the specified quota, quantity. customs duty is determined based on the country of origin and origin of imported goods exceeding the quota. tariff quota is not provided for finished products. in conclusion, customs concessions and preferences are of particular importance in regulating exportimport operations in the economy. the volume of the provided customs benefits and preferences made up 53.4 percent of the total calculated customs payments 4. this situation implies the need to research the conditions for providing existing benefits and preferences and the mechanisms for evaluating efficiency indicators. in order to increase the effectiveness of benefits and preferences from customs payments, it is necessary to pay attention to the following: in 2020, the republic of uzbekistan has an active foreign trade balance with 2 countries, namely kyrgyzstan and tajikistan, among the countries with a free trade zone agreement. an inactive balance was observed with the rest of the partner countries last year. in order to increase the effectiveness of tariff preferences and to achieve an active foreign trade balance with other countries, it is proposed to set quotas for countries from tariff preferences. the second part of article 201 of the customs code of the republic of uzbekistan entitled "customs control after the export of goods" in order to achieve the purposeful use of benefits from customs fees and to achieve full recovery of additional customs fees calculated as a result of certain errors and deficiencies, as well as to increase the efficiency of customs control after the export of goods it would be appropriate to make an amendment that "customs control after the export of goods and additional calculation of customs fees can be carried out within three years (in practice one year) from the time when the goods are under customs control." we can see that the concessions given to uzbekistan from customs payments are 1.6 times more than the amount of funds transferred to the state budget in 2020, which has a positive effect on the increase in the volume of imports, and this situation leads to a negative balance in foreign trade. in order to optimize import goods and improve the competitive environment in our republic, it is recommended to reduce monopolistic enterprises and to introduce a mechanism for applying the mechanism of granting concessions from customs payments to general goods. it is recommended to cancel customs duty exemptions for the import of certain goods, set quota customs duties (low rates for a certain amount of goods) for certain goods necessary for the state needs, and set a high rate for goods that are in excess of the needs of our republic. 3tariff quota is a method of managing foreign trade policy through tariffs , which means import or export exempted from customs duty within the limits established by law. 4author's calculation ( based on information from the report of the state customs committee ) american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 85 www.americanjournal.org effective prospects for implementing digital governance in the enterprises xodjаmurаtovа gulbаxаr yuldаshevnа alfraganus universiteti o’qituvchisi a b s t r a c t k e y w o r d s this article deals with the importance, stages and benefits of implementing digital governance in enterprises. digital management includes modern management systems that serve to optimize business processes, accelerate decision-making and increase efficiency. the article describes the main stages of the digital transformation process analysis of technological opportunities, data digitalization, implementation of automation systems, personnel training and constant monitoring. it also analyzes the role of digital governance in increasing efficiency, reducing costs, and ensuring competitiveness for businesses. the article serves as a useful guide for entrepreneurs and managers interested in implementing digital technologies. digital management, digitalization, automation, business processes, technological transformation, efficiency, innovation, enterprise management, competitiveness, erp system, crm system, data analytics. introduction today, the digital business model of industrial enterprises should be such that it should cover all consumers, the organization of marketing and advertising activities and production processes with customer convenience, packaging, product description and rules of use, the benefits or benefits of the product. moreover, with a certain share of basic products in the total volume of production, it is possible to create a business model aimed at achieving a large profit from basic products by increasing the volume of sales in separate products. business model is a structure of business processes that determine the relationship between employees, consumers and partners in production, marketing and sales that are used to plan, control and correct the activities of the organization. a business model is a logical, schematic description of a business that is designed to help assess the key factors of an organization's success. according to our studies, the first business models for organizing innovative management of enterprises were developed in the 30s of the twentieth century, which in the economic literature is called "technological impetus". in the period after the 80s of the twentieth century, the main focus of enterprises was on the organization of innovation management of innovation processes and knowledge in the interaction of knowledge. at the same time, it was directed to control implementation of innovative functions of enterprise in parallel in the divisions within its organizational structure. american journal of business management, economics and banking volume 31 december 2024 p a g e | 86 www.americanjournal.org figure 1. "combinatsion" model of organization of innovative management of enterprise, 1970 in particular, in the japanese model of organization of innovative management of enterprises, a model of management in the sphere of social efficiency of innovation activity has been formed from the results of innovation activity to participants in internal activities, interested consumers, suppliers and other interested groups. 2. interactive model of organization of innovative management of enterprise, 1990 according to the analysis, most enterprises are developing new business models based on the innovative potential of the enterprise in the formation of innovative management processes, in which each period is divided into different stages from the formation of an innovative idea to the consumer and further (service-service) using "stage-gate process" models of organization of innovative processes. the introduction of new business models requires first of all to take into account the american journal of business management, economics and banking volume 31 december 2024 p a g e | 87 www.americanjournal.org regulatory documents issued by external parties governments (states), the state of the market (wholesale and retail sellers), consumer (end buyer) demand, packaging, sale, delivery and after-sales services of chemical products, as well as the wishes and potential of the internal correspondent owners. the essence of digital management digital management is the system of managing enterprise activities based on digital technologies. in it, data is managed using artificial intelligence, automation, cloud computing and other modern technologies. the main goal of digital management is to optimize business processes, speed up decision-making, and increase productivity. steps in implementing digital governance for successful implementation of digital governance in the enterprise, it is necessary to follow the following key steps: 1. analysis of technological opportunities the existing technological infrastructure of the enterprise will be studied, determining the readiness to implement new systems. on this basis, a development strategy will be developed. 2. digitization of data a milestone is the digitization of documents, processes, and other business resources. this, in turn, allows you to store data in one place and use it efficiently. 3. implementation of automation systems automation tools simplify processes such as production, sales, and customer service. erp (enterprise resources management), crm (customer relations system) and other systems are the main tools in this matter. 4. personnel training and retraining for the successful use of technologies, it is necessary to train employees in new ways of working and help them in the adaptation process. 5. development monitoring and development the operational efficiency of the implemented systems should be regularly monitored and updated. this process serves to continuously continue the digital development of the enterprise. american journal of business management, economics and banking volume 31 december 2024 p a g e | 88 www.americanjournal.org benefits of digital management the introduction of digital governance provides enterprises with the opportunity to: • increased efficiency: time and resources can be saved via automation. • quick decision-making: rapid data analysis allows management to make confident decisions. • increase competitiveness: innovative approaches turn an enterprise to one of the market leaders. • improved financial results: revenue can be increased by reducing operating costs. conclusion implementation of digital management in the enterprises is a strategic necessity of modern business development. this process allows businesses to increase efficiency, use resources wisely, better meet customer needs, and make faster decisions. the adoption of digital technologies will significantly enhance the competitiveness of the enterprise through automation, data analysis, and optimization. in the future, the use of digital governance will remain an important priority for businesses looking for technological development. this helps businesses adapt to the demands of global markets, improve their financial performance, and maintain the leadership in their industry. thus, digital management becomes one of the key factors for success for businesses. references 1.rozanov, a. who holds the wealth of nations? / a. rozanov // central banking journal. – 2005. may. – volume xv.number 4. -p. 52-57. 2. суверен фондлар институтининг расмий сайти. – sovereign wealth funds institute (swfi) https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund 3. www.preqin.com/swf18. preqin special report: sovereign wealth funds. august 2018. 4. https://www.nbim.no/en/ норвегия глобал пенсия фондининг расмий сайти 5. https://www.adia.ae/en/home.aspx. абу даби инвестиция агентлиги-нинг расмий сайти 6. https://www.temasek.com.sg/en/index.html. "темасек" холдинги расмий сайти. 7.http://www.minfin.ru/ru/stabfund. россия федерациясининг барқарорлаштириш фонди расмий сайти. https://www.swfinstitute.org/fund-rankings/sovereign-wealth-fund http://www.preqin.com/swf18 https://www.nbim.no/en/ https://www.adia.ae/en/home.aspx https://www.temasek.com.sg/en/index.html http://www.minfin.ru/ru/stabfund american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 29 www.americanjournal.org special economic zones as drivers of regional economic development: best practices and implications for uzbekistan khatamova manzura ochildiyevna, scientific researcher a b s t r a c t k e y w o r d s special economic zones (sezs) are considered effective tools for promoting industrialization and structural transformation, provided they are implemented appropriately in the right context. this document reviews existing practices of sez establishment using examples from successful countries, including china and south korea, and explains how sezs contribute to regional economic development. sez, economic development, cluster, free trade zone, sez characteristics, economic growth, multinational corporations. introduction overview of sezs special economic zones are a general term representing various types of traditional trade zones. they are geographically confined areas that are physically secured (ganne, 2018) and governed by unique administrative systems. sezs often operate under more liberal legal frameworks and offer several benefits, such as duty-free operations (farole, 2011). advantages of sezs 1. direct economic benefits: o job creation. o currency exchange. 2. indirect economic benefits: o transfer of new technologies and skills. sezs act as integrated tools for economic development, providing a geographically restricted area with special legal status and favorable economic conditions for both domestic and international entrepreneurs. sezs in developing economies most developing countries focus on enhancing regional economic practices through the establishment of sezs. the primary goal of these zones is to attract foreign direct investment (fdi). however, many developing nations lack the expertise and knowledge to fully utilize sezs' potential. american journal of business management, economics and banking volume 30 november 2024 p a g e | 30 www.americanjournal.org china’s sez practices china serves as a notable example, being one of the first countries to succeed in establishing sezs. the term "special economic zones" in china encompasses a wide range of zones, including free trade zones, export processing zones, industrial parks, free ports, and enterprise zones (chiao, 2010). china’s sezs, such as shenzhen, zhuhai, shantou, xiamen, hainan, shanghai pudong new area, and tianjin binhai new area, vary in functionality and cover extensive areas (hu, 2018). these zones have been instrumental in promoting gdp growth, employment, and trade through increased exports and fdi attraction. south korea’s sez success south korea exemplifies effective sez implementation, setting a benchmark for other nations. key factors contributing to this success include strategic locations (mccormick, 2017) and investmentfriendly policies. the south korean government incentivized foreign companies by offering favorable land leasing options and a variety of benefits. the masan free trade zone, a prominent example, hosts global companies like nokia, sanyo, and sony, which form concentrated industrial clusters. another significant aspect of south korea’s sez model is its strong collaboration with local governments, enabling domestic companies to benefit from advanced technologies and employment opportunities, fueling local economic growth. five critical factors that facilitated south korea’s sez development include: 1. strategic location. 2. timely establishment. 3. comprehensive service provision. 4. robust government support. 5. engagement of major multinational corporations (farole, 2011). uzbekistan’s sez strategy in the context of liberalization and economic modernization, uzbekistan is creating favorable conditions to attract foreign direct investment (fdi). the government views sezs as pivotal in ensuring access to products and services that meet international standards. sezs in uzbekistan aim to stimulate regional development and industrial sector growth. these zones are crucial for transitioning to a market economy, not only in attracting fdi but also in advancing economic reforms. evidence from global practices shows that sezs with proper tax incentives and customs benefits significantly boost a country’s gdp. for instance, sezs in manaus, brazil, contribute to half the region's gdp, create jobs, and enhance exports. uzbekistan has adopted laws to encourage fdi through sezs. initial sezs include: 1. navoi free industrial-economic zone. 2. angren special industrial zone. 3. jizzakh special industrial zone. other sezs established include: • urgut free economic zone. • gijduvon free economic zone. • kokand free economic zone. • hazorasp free economic zone. american journal of business management, economics and banking volume 30 november 2024 p a g e | 31 www.americanjournal.org global and environmental context the popularity of sezs is growing, driven by evolving global economic and market conditions. for instance, china designated specific cities and provinces as sezs to pilot market-oriented economic reforms. this model has been adopted widely in east asia and latin america. additionally, the rising global emphasis on climate change has highlighted the need for sezs focusing on ecological sustainability, setting a trend for "green zones." successful sezs align with the host country’s comparative advantages and require a long-term vision, as economic reforms take time to materialize. references 1. азиатский банк развития (2017). «особые экономические зоны и конкурентоспособность: пример из шэньчжэня, китай». политическая записка prm (представительство пакистана), исламабад. 2. brautigam, d. & xiaoyang, t. (2011). африканский шэньчжэнь: особые экономические зоны китая в африке. журнал современных африканских исследований, 49, 27-54. crossref 3. brouthers, kd & hennart, jf (2017), «границы фирмы: понимание международных исследований режима входа», journal of management, 33 (3), 395-425. crossref 4. бакли п.дж., клегг дж., кросс а.р., лю х., восс х. и чжэн п. (2017), «детерминанты прямых иностранных инвестиций из китая», журнал «исследования международного бизнеса», 38 ( 4), 499-512. crossref 5. кармоди, п. (2018), «азиатское восстановление экономики в африке? случай замбии », world development, 37 (7), 1197-1207. crossref 6. chiao, yc, lo, fy & yu, cm (2010), «выбор между 100% дочерними компаниями и совместными предприятиями тнк с развивающегося рынка», international marketing review, 27 (3), 338-365. crossref 7. указ президента республики узбекистан от 12.01.2017 (2017) «о создании свободных экономических зон« ургут »,« хазорасп »,« кокон »,« гиждувон ». 8. указ президента республики узбекистан № 4059 от 02.12.2008 г. (2008 г.) «об организации свободной индустриально-экономической зоны в навоийской области». 9. указ президента республики узбекистан № 4436 от 13.04.2012 (2012) «о создании особой промышленной зоны ангрен». 10. указ президента республики узбекистан № 4516 от 18.03.2013 г. «о создании особой промышленной зоны джизак». 11. (2015). региональный ввп. ввп на душу населения в ес в (2013 г.): семь столичных регионов среди десяти наиболее процветающих. 12. farole t. & akinci g. (eds.) (2011). особые экономические зоны. прогресс, возникающие проблемы и будущие направления. всемирный банк: вашингтон, округ колумбия. 44 (3), 471-485. crossref 13. ганн, бернард и я. леклер, ред. (2018) азиатские промышленные кластеры, глобальная конкурентоспособность и новые политические инициативы. сингапур: world scientific publishing co. pte. ооо кроссреф american journal of business management, economics and banking volume 30 november 2024 p a g e | 32 www.americanjournal.org 14. ху, мин и цзяньмин ван. (2018). «от уровня округа до особой экономической зоны на уровне штата: пример куншанской зоны экономического и технологического развития». базовое исследование для всемирного банка. 15. jensen, c. & winiarczyk, m. (2014). особые экономические зоны 20 лет спустя, case network исследования и анализ, (467). american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 164 www.americanjournal.org namangan region building mahsulot of work, production and its trade tulqinjon yusupjanovich dadaboev kimyo international university in tashkent branch namangan, head of department of economy azimova muslima kamoliddin daughter kimyo international university in tashkent branch namangan, business administration (mba) the directionof the agisweat a b s t r a c t k e y w o r d s this article describes uzbekistan’s construction product work, production and sales of data, the export import to the conditions of the study has been. building products and features revealed specific aspects of the market. the construction industry on the development of xulom and suggestions given. building products, eksport, import, marketing, sales, production, demand and offer. introduction a rapid boost of the process of the globalization of the world, the potential direct effects to the production and sale of construction materials, showing the concept of modern marketing is developing on the basis of their market. currently, one of the ten included the world's most important social problems housing is provided with this population. according to data of the population “at the expense of persons in germany provided with each housing index 39 sq.m in russia 25.8 sq.m, 25 sq in poland.m, 17 in turkey sq.and the us m 70 sq.m has the right”. [1] the construction of the network for sustainable development of building materials mainly depends on the adjustment of satisfaction in terms of quality and quantity requirements, currently based on the concept of the market of building materials are of critical importance in the development of marketing. the study of the problem level building materials ustyushenko the relations that arise in the production of a. n. n. i. bakunovich [2], k. popov n [3] to study then. aribayev i. [4] by the study of the relationship building materials production and warehouse guruhlash them, whichn. to attract buyers of building materials to trade complex, a major trading company p. anderxin of the factors to achieve success and to decrease [5]learned to be danenburg v. [6] by the sales process to establish the directions have been studied. american journal of business management, economics and banking volume 23 april 2024 p a g e | 165 www.americanjournal.org the results of the research methods statistical analysis research, cabinet and field research methods, ekonometrik models, logical analysis, expert led to use other methods of valuation. research severe adaptation to a competitive environment in the world market, production of modern building materials, sales and service processes aimed at enhancing the effectiveness of a comprehensive research is conducted. the digitization of the building materials industry, trade and services of electronic system to create the introduction of the system in the field of artificial intelligence, building materials, trade and services, a rapid pace of development in the sector, the modernization of business enterprises, the introduction of the achievements of science to give benefits by the state, reduce the tax burden, to cover a portion of the costs of export and import business, to give them develop innovative approaches to meet both the demand for specialist personnel to the priority areas of research in this area. ensure sustainable growth for production and exports of competitive products in uzbekistan, as well as modern enterprisestto siya, technical and technological renewal aimed at further deepening of structural reorganizations in the building materials industry is being carried out systematic work on. in particular, the decision adopted by the decree of the president of the republic of uzbekistan and to increase the volume of production of building materials in the country 2 times and a new type of energy-efficient materials in the production of expansion in the territory of the construction of apartment houses, 1 million, 5 billion us dollars through the implementation of projects of construction materials sector to develop a program for the further development of the character of the taskn. production of construction materials with high added value, enterprises of modernization, technical and technological re-equipment, as well as the organization of joint with foreign companies is a leading manufacturer of productions, the production of various types of quality product as required the expansion of import substituting and fill with local products and competitive building materials produced in the domestic market, as well as increasing the export capacity of the network to ensure effective execution of tasks such as the solution of the most pressing scientific research oriented to the production of this issue will show. research in the work of the construction materials market o‘a worthy characteristic of the defining characteristics identified the following circumstances: ma’lum the same than in the type and quality of goods; of goods to the service in the long term; put to specific requirements and certification that the quality of the goods; the relatively small number of subjects of the market (in relation to the consumer market); high transport costs; special infrastructure – sellers, regulation companies and supervisory authorities. offer in the building materials market – regional materials produced by the enterprises of the building materials industry and construction of new building materials to bring the total volume in circulation during a certain time of it. this building while the building materials market demand of consumers and other local organizations also need funds from other entities of the country is part of the general construction materials provided with. american journal of business management, economics and banking volume 23 april 2024 p a g e | 166 www.americanjournal.org if there are factors affecting the development of the market of building materials, all of them important in the development of this market is the fact that dissertatsiyada have been recorded. table 1 building materials use out of the development areas to work out the size of the population of the soul to the beginning of work to out 2017-yil (billion dollars) 2022-year (billion dollars) to the year 2017 compared to a growth pace, times 2017-year (thousand dollars) 2022-year (thousand dollars) to the year 2017 compared to a growth pace of, times, uzbekistan republik 8069,0 25523,1 3.1 251,2 723,6 2,9 namangan 193,2 797,9 4,1 72,8 272,2 3.7 2017-2022 years namangan region building materials use production volume of 4,1 times increased bo‘lsa, in the republic of this indicator 3.1 manuals times that established has. the population jon per building materials for use in and out of namangan region ko‘rsatkich of the republic, to a significant extent low is. of the republic of construction materials work out ko‘rsatkich in namangan region, share 2017-year-2,4 percent, 2022 years this indicator manuals 3.1 percent up was. the population jon per building materials work out ko‘rsatkich of the region in the year of 2022 during the republic as 451,4 thousand dollars less is. but 2017-year condition with compared to the region ko‘rsatkich of the republic of the index is high level to grow established. table 2 work the issue of some type of building material composition analysis 2023 years n regions of total building materials including cement window rouf a building of brick h o f a jm b il li o n .s u m in t o ta l u lu ro ll er s % th o u sa n d t o n s fo r a t o ta l o f y ea rs c el eb ra te d fo rh i % th o u sa n d m et er s sq . in t o ta l, t h e y ea rs , ce le b ra te d fo rh i % m il li o n . ci ty a rt t il e in t o ta l, t h e y ea rs , ce le b ra te d fo rh i % m il li o n . p ie ce s in t o ta l sh a re % 1 namangan 693,6 3 14.2 0.1 1.6 0.4 55,6 5 2 andijan 769,6 3.4 75,7 0,6 13.9 3.8 45,3 4 3 fergana 854,7 3,7 1576,2 12 12229 66 228,1 62 84,4 7,6 total of uzbekistan 23030 100 13043,3 100 18556,2 100 367,7 100 1114,8 100 american journal of business management, economics and banking volume 23 april 2024 p a g e | 167 www.americanjournal.org valley of the region of construction materials work out the analysis in the case of 2023-year namangan region work produced building materials in the republic , the share of 3 percent up was, it work produced cement 0.1 percent, slate 0.4 percent, building of brick, 5 percent up was. building materials use production volume during 693,6 billion.so‘m be fergana 854,7 and andijan 769,6 billion.sum building materials for use issued. fergana and andijan region building materials use production namangan region than the better development of prosperity in the above table are given in the index in both its expression has found. work has been out of the window of the window, 66 percent, of slate 62 percent exactly fergana in the region worked out. table 3 2017-2022-years in building materials export and import analysis million usa dollar showkichs regions in 2018 year 2019 year 2020 year 2021 year 2022 year 2017 year compared with growth pace, times export uzbekistan 70,9 90,6 140,9 211,2 299,5 1,9 namangan region 0,9 1 1, 9 4,1 6.7 22,3 import uzbekistan 1200,8 1330,0 1187,0 1381,7 1653,1 1,7 namangan region 49,3 43,3 45,3 52,1 57,7 1,9 2017-2022 year building materials export 1,9 times o‘sgan toe‘to lish despite of import ko‘rsatkich of a significant level upper toe‘did it. this period of construction materials import was 1.7 times o‘sgan. namangan region building materials the export of this period 23,8 times o‘sish to be achieved. import while 2 times ko‘pay was. in the year 2022 in the republic building materials export in the structure of namangan region the share, 2,2 percent up was if, building materials of import in the structure of 3.5 percent up was. 2017–2022-building materials exports from the region namangan years of analysis on the country in the case of the following condition studied, namangan region, from building materials export oftajikistan, the main part 4,to 6 percent, azerbaijan, 6,5 percent inkazakhstan, where 7 percent, kyrgyzstan is 12 percentof the russian federation 33 percent come on to the statedid. 2017-2022year namangan region 4,1 percent in the structure of the import of construction materials in turkey, kyrgyzstan 5,6 percent in kazakhstan grew by 8.1 percent, and china 9,8 percent percent 61,6 these countries, the russian federation had to share. conclusion building materials market and marketing of the concept on the basis of the development of the toe ‘citizens out carried research results based on the following conclusions were made: 1.the seller and the buyer in the construction materials market in region namangan comfortable enough for the modern-type conditions and opportunities are not available. for sellers of the year in 4 seasons with the low level of shops that are going to provide comfortable, the buyer is free to perform trade avtoturargoh and logistics at the level of the system model has not been established. services trade in the development of a new type of high levels of to the buyer when a service is not well established, highly civilized. modern building materials market in the region gipermarket type american journal of business management, economics and banking volume 23 april 2024 p a g e | 168 www.americanjournal.org (“building materials “gipermarket”s) of the organization as a result is achieved to solve the above problems effectively. 2.building materials in the region namangan shug‘ithas not established sufficient llanuvchi by business entities in electronic trading of building materials and building materials producers and consumers of that region namangan (building organizations, residents, businesses) it is necessary to combine single system of innovation. covering all the territory of namangan region through the creation of the online trading platform of building materials in the development of electronic trade is achieved. 3.consulting services in the field of trade in the territory of building materials and building materials in the region, the introduction of seller “place of purchase” and large villages in the world every district in the samples of building materials that also the organization, according to the order from the firm or the supplier directly from the reservoir to the construction area trade shoincrease the production of building materials as a result of xobchalari up to be able to fully meet domestic demand and competitive, the organization of the production of innovative materials, building materials sales expansion methods, the implementation of additional building materials sales service to solve the problems of complexity in the sales process serves. 4.building materials manufactured in the region, the opportunities to enhance the competitiveness of enterprises and firms with a single technological chain (contact) service, based on the integration of research and education in the region namangan mutual “namangan building materials and services” of clusters formation and the activities of the organization work as a result of the rapid development of the production of building materials and building services, to meet the housing needs of the population, building materials market from taking advantage of modern marketing strategies will create an opportunity to develop. 5.practical operating staff boosts the skills of marketing professionals in enterprises and firms to create and trade a continuous system, it is necessary to go. each region organized in the new “small business centers” with “business development bank”, in cooperation with the “marketing-sales” we think that a program should be developed staff training. at the present time because of the competitiveness of the economy of the country as the most important factor of raising knowledge of marketing and sales, and you need professionals who take advanced international practices in the same area. 6.should consider the following implementation in the building materials industry: building materials division in the countries of the eurasia economic union and the analysis of the structure of the import of building materials available in the country in the manufacture of eurasia economic union adapt to the requirements of the standard of the division; the division of eurasia economic union with the state on the production of innovative building materials, the development of cooperation and mutual exchange of practical experience should be the implementation of the transfer of advanced technologies. as a result, an increase in the level of openness of the economy to foreign trade liberalization, effective production and increase competitiveness to the strengthening of the country of export potential of increasing internal capacity expansion will help. 7.a directory of the necessary training institute, and on this basis the relevant branches of the department of the university system of organization of scientific and educational process to achieve klasterlashtirish as a result of the integration of building materials companies that produce highly american journal of business management, economics and banking volume 23 april 2024 p a g e | 169 www.americanjournal.org qualified and who have knowledge of the modern marketers, technologists and engineers for providing the solution to the problem is achieved. 8.the types of organizations for the organization of individual housing construction and basic materials stock trading discount prices set of lowering the costs of construction work carried out in the country, provide for the housing needs of the population, and cheap quality of construction work to be performed will create an opportunity. references 1. https://gidnenuzen.ru/obespechennost-zhilem-po-stranam-mira-2020/ 2. ustyushenko n. a. bakunovich n. i. proizvodstvo stroitelnoe the material i izdeliya. giust and bg sxemax course leksiya v minsk 2011: 3. popov, k. n. i izdeliya stroitel material: uchebnoe posobie beginning studentov stroitelnix spesialnostey srednix uchebnix zavedeniy. / k. n. popov, m. b. kad tool. – m. : uzbekistan. branch., 2006. – 440 s. 4. yuxnevskiy, p. i. i izdeliya stroitel material: uche can. posobie / p. i. yuxnevskiy, g. t. shirokiy. – minsk : texnoprint, 2004. – 476 s. 5. anderxin p. pokupaem pochemu mi, ili kak pokupat zastavit/ the. s england. n.v. cream mn.: ooo "popuri". 2003; 6. danenburg v. monkrif. r taylor v. "osnovi optovoy torgovli", the. uk s.: m.: siri, 2003; 7. makhmudov, t. o., & ogli kodirov, t. k. metho for evaluating the effectiveness of the marketing activities of an enterprise, and the analysis result. academy of management gwalior, 146. https://gidnenuzen.ru/obespechennost-zhilem-po-stranam-mira-2020/ american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 80 www.americanjournal.org problems of improving the effectiveness of the mechanism of financing the activities of preschool educational organizations nasurova kamolaxon ravshanovna ismailova feruza israilovna tashkent state university of economics, phd tashkent state university of economics, student email: www.k.r_nasurova@mail.ru a b s t r a c t k e y w o r d s this article discusses the problems of evaluating the quality of educational activities in preschool educational institutions and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice. preschool education, funding, efficiency, budgetary resources. introduction in the xxi st century, educational development has become the main means of ensuring the sustainable and progressive growth of the world economy, the strategic resource of society's development, national interests and the competitiveness of countries' economies on a global scale. therefore, in the process of developing the education system in each country, it is a priority to ensure large-scale quality changes, to coordinate management related to the improvement of quality and efficiency, which have fundamental characteristics for all stages of the education system, to search for financial, personnel, information, technological resources and to ensure integration processes between them. is being given. such a number of cases require the implementation of individually relevant approaches for all stages of the educational system, the formation and implementation of a system of measures in accordance with each stage. therefore, in the process of developing the education system in each country, it is a priority to ensure large-scale quality changes, to coordinate management related to the improvement of quality and efficiency, which have fundamental characteristics for all stages of the education system, to search for financial, personnel, information, technological resources and to ensure integration processes between them. is being given. such a number of cases require the implementation of individually relevant approaches for all stages of the educational system, the formation and implementation of a system of measures in accordance with each stage analysis of literature on the topic scientific-theoretical approaches to the category of "financial mechanism" have been thoroughly studied within the framework of the researches of foreign economists a.yu. is recognized as a means american journal of business management, economics and banking volume 25 june 2024 p a g e | 81 www.americanjournal.org of relative influence [2]. according to the results of the research carried out by g. v. pisarenko, it is defined as "the financial mechanism is a system of forms, types and methods of organizing financial relations established by the state" [3]. according to the conclusions based on v.v.petrushevskaya, n.a.brovar's research, "the financial mechanism is a means of organizing financial relations by the state at the level of the national economy and its individual subjects" [4]. the processes of financing the activities of preschool educational organizations occupy a special place in the researches of s.v.kuznetsova, a.n.ilchenko. in the course of research, it is noted that the need for preschool education services changes under the influence of socio-demographic factors, the effective activity of preschool education is based on the forecast results based on the correct analysis of the processes of its operation. it is also recommended to use mathematical methods and models for financial regulation of activities of pre-school educational organizations, thereby choosing appropriate tools for the purpose [5]. economists t. malikov, o. olimzhanov recognize it as a "financial mechanism a system of stateestablished forms, types and methods of organizing financial relations" [6]. kh.b. nazarov's scientific research discusses the problems of evaluating the quality of education in preschool educational organizations and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice [7]. based on the above thoughts and considerations, it can be said that the "mechanism of financing" activities of preschool educational organizations is a combination of the use of various forms and methods of financial resources appropriated by the state in financing preschool educational organizations. research methodology this article used methods such as analysis of scientific works, scientific monographs, manuals and articles of foreign and local scientists, statistical analysis, analytical comparison of tables, grouping, calculation of quantitative and qualitative indicators, and their comparison with each other. analysis and results the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. funding of preschool education organizations within the state and local budgets is carried out in the following directions: expenses of the first and second groups, taking into account the remuneration fund for employees of the preschool educational organization, including allowances and additional payments and social payments; costs of organizing the educational process in preschool educational organizations; the amount of capital expenditures in preschool educational institutions. funding of preschool education organizations is carried out based on the state preschool education program in accordance with the relevant cost estimates. in this case, the cost estimate and staff table of american journal of business management, economics and banking volume 25 june 2024 p a g e | 82 www.americanjournal.org pre-school educational organizations, labor costs are implemented in accordance with the approved regulatory and legal documents and per capita financing criteria. in 2020-2022, quality changes in this regard are provided in the general indicators of preschool education organizations in the republic of uzbekistan. in 2020, the total number of preschool educational organizations in the republic of uzbekistan was 18,345, and in 2022, this number will increase by 49% to 27,303 (table 1). table 1 indicators of preschool education organizations in the republic of uzbekistan in 2021-2022 1 indicators 2020 2021 2022 number of pre-school educational organizations 18345 22429 27303 from which: state pre-school educational organizations 5981 6031 6387 pre-school educational organizations based on ppp 1166 1200 1345 family preschool educational organizations 10771 14579 18797 private preschool educational organizations 427 619 774 capacity (thousand seats) 852,5 856,2 858.3 number of groups (thousand units) 46 46,3 46.8 number of trainees (thousands) 1608,0 1715,3 1918,1 from which: in state preschool education organizations (thousands of people) 1130,7 1153,3 1311,0 in preschool educational organizations based on ppp (thousands of people) 107,5 118,3 133,0 in family preschool educational organizations (thousands of people) 369,7 443,7 494.0 number of children aged 3-7 (thousands) 2792,8 2876,6 2927,4 coverage of children with preschool education, % 58 63 67 in 2020-2022, in the general structure of the indicators of preschool education organizations in the republic of uzbekistan, the tasks related to increasing the number of preschool education organizations in the field of public-private partnership from 1,166 to 1,345 are noted, which indicates that special attention is being paid to the public-private partnership system in supporting the activities of preschool education organizations. in accordance with the legislation of the republic of uzbekistan, financing of the activities of state preschool educational organizations is carried out at the expense of state budget funds, fees for care, feeding and looking after children in preschool educational organizations, as well as other sources not prohibited by legislation. based on the results of the monitoring, the cost estimate for financing the organization of education in state preschool educational organizations for the next year will be carried out according to the standards set in the general education programs. when calculating subventions from the local budget, the state standard of financing from the budget and the volume of direct financing of pre-school education organizations in case of joint organization are used. 1 2022 budget project for citizens in uzbekistan. t., 2021. 15-16 pages american journal of business management, economics and banking volume 25 june 2024 p a g e | 83 www.americanjournal.org due to the fact that in the process of budget financing of pre-school education organizations, the current funds allocated according to the cost estimate are allocated taking into account the market prices for the reporting period, problematic situations related to the lack of funds may arise in the financing of costs. in this process, the amount of expenses for the first and second group of preschool education organizations will be increased. the financial performance of preschool educational organizations can be evaluated by how well children can adapt to society and social life and how quickly they can adapt to the situation when they go to school, and can acquire knowledge and skills in accordance with educational programs. in contrast, efficiency is measured by how much money is spent on each child. the combination of these two indicators can serve as a basis for evaluating how effectively the available funds are used in preschool education organizations. the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. conclusions and suggestions the need to research the theoretical-methodological foundations of the improvement of the financial mechanism of the development of activities of preschool educational organizations increases due to the occurrence of inconsistencies between demand and supply in the market of educational services. especially in the context of market relations, the lack of funds in the field of education is manifested by the demand for education, a wide range of educational services and limited opportunities for consumers of services. it is necessary to solve the existing problems in the financing system in preschool education organizations, to increase the efficiency of financing by directing new models of implementation of the financing system, the compatibility of system elements to sources of financing. this, in turn, will serve to implement a systematic approach to the formation of new relationships between preschool education organizations, new models of education financing to ensure the appropriate proportion of budgetary and extra-budgetary funds. it is possible to achieve target indicators in the process of financing preschool education by ensuring the compatibility of the forms of financing the activities of preschool education organizations and their structural composition between regions. references 1. concept of developing preschool education system of the republic of uzbekistan until 2030 2.kazak a. yu, veretennikova o.b, maramygin m.s, rostovtsev k.v. cash management of enterprises: a textbook for universities. ekaterinburg, 2006. – 464 p. 3. pisarenko g.v. theory of finance: educational method. allowance. minsk: bseu, 2018. – 49 p. 4. petrushevskaya v.v., brovar n.a. systematic view of the economic content of the category “financial mechanism” // business strategies. 2020. no. 8., 213 pp. american journal of business management, economics and banking volume 25 june 2024 p a g e | 84 www.americanjournal.org 5. kuznetsova s.v., ilchenko a.n. problems of financing preschool educational institutions (dou) // modern science-intensive technologies. – 2008. – no. 4. – p. 170-172 6. malikov t, olimjonov o. finance. textbook. t.: "economy-finance" 2019. 800 p. 7. nazarov kh.b. methods of evaluating the effectiveness of financing preschool educational organizations. "science and education" scientific journal volume 1 issue 2 american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 1 www.americanjournal.org service delivery process and customer retention of airlines in rivers state nzenwa, charles department of marketing university of port harcourt business school eke, haniel o. (ph.d) department of marketing university of port harcourt haniel.eke@uniport.edu.ng prof. emeka j. okereke director, university of port harcourt business school a b s t r a c t k e y w o r d s this study conducted an empirical investigation into the impact of the service delivery method on customer retention for airlines in rivers state. the study utilised primary data collected through the administration of questionnaires. the study encompassed all twentyfour (24) airlines that operate in rivers state. due to the relatively limited number of airlines, the whole population was included in the study. the study utilised the pearson product moment correlation coefficient to examine the link between the dependent and independent variables. the analysis revealed a strong and positive correlation between self-service technology and customer retention, leading to improvements in customer satisfaction and commitment. similarly, service process blueprinting also showed a significant and positive relationship with customer retention, resulting in enhanced customer satisfaction and commitment. the study determined that the process of delivering services has a substantial impact on client retention. hence, it is advisable for airlines to ensure that their selfservice technologies are readily available and user-friendly. additionally, airlines should be cognizant of how their consumers acquire information about their service offerings in order to properly manage external communications for the company. service delivery process, customer retention, self-service technology, service process blueprinting, customer satisfaction, customer commitment introduction the aviation industry significantly contributes to the global economy by enabling corporate travel. the industry is considered a crucial driver of economic growth due to its ability to provide employment opportunities and employ a significant number of individuals globally. additionally, it facilitates rapid american journal of business management, economics and banking volume 27 august 2024 p a g e | 2 www.americanjournal.org and efficient global connection, enabling enterprises to access foreign markets and engage in crossborder collaborations. this interconnectivity facilitates the exchange of ideas, knowledge, and commerce across individuals, urban areas, and nations. as to a survey by nigeriafinder.com, the worldwide airline sector consists of 2,235 rival airlines, out of which 345 are operational in africa. in nigeria, there are a total of fourteen local airlines and nine foreign carriers. in addition, according to oxford economics (2017), the global transportation business annually transports over 2 billion people and approximately 50 million tonnes of freight, resulting in a contribution of over 3.4 trillion usd. innovation is seen as a crucial element in preserving a lasting competitive edge and ensuring the continued loyalty of customers. various studies have examined the correlation between customer retention and innovation. according to arnold et al. (2010), organisations' innovation has a crucial role in attracting and keeping customers. in addition, tsado et al. (2022) did a study on micro, small, and medium companies (msmes) in northern nigeria's construction industry. they discovered that innovation has a significant influence on client/customer satisfaction, retention, and relationships. kim and colleagues. according to kim et al. (2019), consumers' impression of innovativeness has an influence on value co-creation, which in turn leads to increased satisfaction, loyalty, and retention. multiple research have explored the relationship between organisational innovativeness, customer happiness, loyalty, retention, and overall performance. researchers can get useful insights in the tourist business by examining the connection between service innovation and consumer co-creation, happiness, and loyalty (gustafsson et al., 2020). den hertog (2000) introduced a model of service innovation that consists of four dimensions. this model has been cited in several studies, including those by miles (2008), park et al. (2015), kuusik et al. (2011), and chaparro-peláez et al. (2014). the concept proposes that service innovation should be comprehended in relation to four characteristics of originality. the dimensions encompass novel service concepts, customer interfaces, service delivery systems, and optional technologies that enable service innovation (miles, 2008; park et al., 2015; kuusik et al., 2011; chaparro-peláez et al., 2014). bhat and sharma are individuals working in the hotel sector. in their study, bhat & sharma (2021) investigated the many aspects and outcomes of service innovation. bhat and sharma (2021) recognised three fundamental aspects of service innovation: technical innovation, organisational innovation, and human capital innovation. the purpose of this study is to investigate the relationship between service delivery innovation and customer retention, in light of the unusual observations present. this will be accomplished by using a blend of several frameworks, acknowledging the generally recognised belief that retaining customers is vital for the durability and long-term prosperity of firms in today's service-oriented economy. this research adopts a firm theoretical position and integrates innovative technology breakthroughs in the field of aviation. this study examines the correlation between the service delivery method and customer retention in the airline industry in rivers state. the airline sector has been severely affected by the covid-19 worldwide epidemic and the subsequent surge in aviation fuel prices, resulting in a substantial decline in patronage, retention, and overall performance. therefore, the focus of this study is on the method of delivering services and the ability of airlines to retain customers in rivers state. 1.1 aim and objectives of the study this study aims to determine the relationship between service delivery process and customer retention of airlines in rivers state. the objectives are to: i. ascertain the relationship between self-service technology and customer retention. american journal of business management, economics and banking volume 27 august 2024 p a g e | 3 www.americanjournal.org ii. know the relationship between service process blueprinting and customer retention. 2.0 literature review 2.1. customer retention (cr) customer retention is an essential element in achieving a competitive edge in the commercial realm. developing and sustaining fruitful relationships with consumers is a fundamental element of relationship marketing (morgan & hunt, 1994). many organisations consider retaining customers to be a crucial goal, particularly in today's competitive business environment. brands invest significant time and financial resources in building strong and lasting relationships with potential customers to achieve better performance and meet marketing objectives. this is especially important in saturated markets with intense competition (bataineh, alabdallah, salhab, & shoter, 2015). ang and buttle (2006) and larivie and poel (2005) define retained customers as those who have a longer tenure with a business. due to the significance attributed to customer retention, several researchers have proposed multiple definitions in recent years, although no agreement has been reached. oliver (1997) provided a definition of customer retention as a strong dedication to regularly repurchase or support a chosen product or service in the future, even when faced with external factors or marketing strategies that may encourage switching to alternatives. 2.1.1. customer satisfaction building a content client base is a well-known aspect of relationship marketing (homburg, wieseke & bornemann, 2009; rather, 2018). customers who are satisfied typically have a sense of fulfilment in relation to their consumption and are happy with the products or services they have received (oliver, 1997). the topic of customer satisfaction has garnered significant scholarly interest in recent years. consequently, there is a substantial amount of scholarly contribution stemming from it (anderson & mittal, 2000; iacobucci, grayson, & ostrom, 1994; mccollough, berry, & yadav, 2000). customer satisfaction refers to the subjective experience of either contentment or dissatisfaction that arises from the assessment of services rendered by an organisation to an individual in relation to their expectations (oliver, 1980; leisen & vance, 2001). according to oliver (1997), customer satisfaction is the assessment that a product or service, or its specific features, have supplied or are delivering a satisfactory degree of fulfilment associated to consumption. customer satisfaction is the profound sense of contentment that arises when a consumer's expectations are either fulfilled or exceeded. satisfaction refers to the consumer's sense of fulfilment in reaction to a product or service (andreassen, 2000). a satisfaction judgement refers to the evaluation of a product or service feature, or the product or service itself, based on the amount of enjoyment and fulfilment it provides in relation to consumption. this judgement can also include instances when the level of fulfilment falls short or exceeds expectations (tronvoll, 2010). satisfaction may be defined as the consumer's evaluation of the goods or service they got, both before and after making a purchase. the importance of customer happiness is a central focus in marketing literature. however, despite the efforts of researchers to quantify and clarify customer satisfaction, there is still no agreement on its definition and how to assess it. american journal of business management, economics and banking volume 27 august 2024 p a g e | 4 www.americanjournal.org 2.1.2 customer commitment the notion of commitment has been crucial in service marketing for fostering and sustaining connections between enterprises and customers (chai, malhotra & dash, 2015). the importance of client loyalty has become crucial in the sustainability of business-to-customer interactions. according to morgan and hunt (1994), the relationship marketing paradigm suggests that successful relationship marketing relies on relational commitment, which is crucial for developing relationship marketing. many researchers regard the study of sociology and psychology to be the origin of the notion of commitment (pritchard, havitz, & howard, 1999). psychologically, commitment refers to the decisions or cognitions that firmly establish or bind an individual to a certain behavioural inclination (pritchard et al., 1999). crosby and taylor (1983) defined commitment in the business area as a consistent preference that prevents the inclination to oppose changing attitudes. the capacity to sustain a commercial partnership without any purpose to discontinue or terminate it. morgan and hunt (1994) define commitment as the belief of a business partner that a continued connection with another partner is valuable enough to justify putting forth full effort to sustain it. there is a strong and intense desire to maintain important ties with clients. 2.2 service delivery process services are typically perceived as concepts with unique attributes that cannot be completely duplicated since services are both created and consumed simultaneously. a service refers to a series of intangible activities that usually take place when clients engage with service staff, physical resources or items, or systems of the service provider. these actions are provided as remedies for consumer issues (gronroos, 2007). a service can be described as an intangible action or benefit rendered by one individual to another, without resulting in the acquisition of any material asset (kotler, 1997). it is a confluence of intangible interactions between consumers and service personnel that lead to the production and exchange of value. services are ethereal entities that cannot be physically perceived or touched. services has distinct characteristics and can be exceedingly challenging to replicate in its entirety due to their diverse and varied nature. gronroos (2000) argues that services are produced and consumed in collaboration with consumers, making it difficult to isolate these aspects or manufacture them in advance and keep them until they are desired. according to quinn and gagnon (1986), services are economic activity that do not produce a physical product or construction as their main result. kotler (1997) defines a service as an intangible action or advantage that one individual may offer to another, without the involvement of any physical possession. over the past few years, the term "services" has become more widely used, resulting in multiple interpretations as a result of the interaction between service clients and service suppliers. a service refers to a series of intangible activities that usually take place when clients engage with service staff, physical resources or items, or systems of the service provider. these actions are provided as remedies for consumer issues. 2.2.1 self-service technology technological advancements in the service business have recently caused a shift in how services are provided, moving away from in-person interactions to self-service technology (sst) (lu, chou & ling, 2009). over the last ten years, the use of ssts has become a prominent trend in the service sector industry (leung & matanda, 2013). this technology breakthrough has brought about a significant american journal of business management, economics and banking volume 27 august 2024 p a g e | 5 www.americanjournal.org change in the way businesses operate, revolutionising their methods and altering the way customers connect with service organisations by removing direct contact with personnel. previous studies have started examining the implementation of sst (e.g., curran & meuter, 2005; dabholkar & bagozzi, 2002; meuter et al., 2005) in various industries such as banking, insurance, aviation, and healthcare services, among others. the discovery aimed to reduce human interactions by implementing creative, efficient, and cost-effective ways that offer clients a diverse range of services, hence reducing the need for human involvement (kokkinou & cranage, 2013). sst refers to technology interfaces that allow consumers to create a service without the need for direct engagement of service employees (meuter et al., 2005). it enables clients to access and utilise services without the need for service staff. the process transitions service procedures from a "low tech, high touch" approach to a "high tech, low touch" one, allowing customers to have more involvement in the production of services. check-in technologies are a type of sst that are utilised in the airline sector for various pre-flight activities such as booking, purchasing aircraft tickets, check-in, and boarding (lu et al., 2011). sst are technological systems that allow individuals to complete tasks or transactions without the need for assistance from service personnel. these technologies require active participation from the consumer and serve as a replacement for high-touch services, providing technology-based alternatives that are user-friendly. 2.2.2 service process blueprinting in addition to the recognition of the prevalence of services in global economies, there is an increasing focus in corporate operations on generating significant and memorable client experiences (meyer & schwager, 2007). according to bitner et al. (2008), a service is characterised as intangible, flexible, and offered over different time and location. in order to make the service delivery process, which is ethereal by nature, concrete, it is necessary to create a service blueprint. this blueprint guarantees that high-quality service is consistently provided. the airline sector is now facing a significant challenge in providing high-quality service. to improve service quality, the implementation of a service plan might be of utmost importance. service design is typically characterised by the utilisation of several visualisations, including service blueprints. to enhance the quality of service, it is crucial to have a precise and detailed comprehension of service procedures and components (zeithaml et al., 2013). the service blueprint (sb) has emerged as a highly valuable instrument for visualising and conceptualising the entire service process in the fields of service design and innovation (fließ & kleinaltenkamp, 2004). blueprints have emerged as fundamental instruments in service design and are included in several compilations of methodologies for service design (miettinen & koivisto, 2009). the use of the service blueprint approach enabled the creation of services and experiences with meticulous attention to details and all delivery procedures. service blueprinting is often seen as the initial endeavour to examine service interactions from the standpoint of the client (shostack, 1977). 2.3 service delivery innovation and customer retention service innovation is praised for its ability to generate better outcomes for customers, as well as contribute to service innovation within the organisation and provide a competitive edge (chen et al., 2018). walls et al. (2011) have shown that innovation leads to greater growth, higher acquisition of new customers, enhanced operational efficiency, and heightened consumer value, experience, and loyalty. according to sarmah, rahman, and kamboj (2017), service innovation has an impact on american journal of business management, economics and banking volume 27 august 2024 p a g e | 6 www.americanjournal.org several customer outcomes, such as motivation, engagement, trust, and commitment. furthermore, wu (2014) asserts that innovation plays a crucial role in establishing consumer loyalty, particularly within the service industry. service innovation can have a beneficial impact on repurchase intention by addressing or better fulfilling consumers' hidden requirements, rather than only focusing on existing products or services (leckie, et al. 2018). the service business is composed of several segments, including financial services and telecommunications, which are unique from each other (lovelock, 1983). furthermore, a service can be perceived as a result or consequence, representing "what a customer obtains" (mohr & bitner, 1995). 2.3.1 self-service technology and customer retention self-service technology offers users a diverse array of amenities, thereby removing the need for human interaction (kokkinou & cranage, 2013). within the airline business, around 87% of individuals utilise sst for making bookings. additionally, more than half, namely 54%, of consumers globally choose sst for check-in services, as shown via the airline it survey conducted in 2017 by www.sita.aero. this tendency has shown a significant increase and has garnered much scholarly attention in the past decade. technologically enabled platforms, such as sst, offer easy services to clients, leading to improved productivity and satisfaction (tsou & hsu, 2017). according to oliver (1997), customer satisfaction is the assessment that a product or service, or its specific features, has supplied or is delivering a satisfactory degree of fulfilment associated to consumption. several academic studies have established a connection between self-service technology and consumer satisfaction in the service industry. lu et al. (2009) found that implementing and using sst by service providers can streamline service delivery, broaden service alternatives, enhance productivity and efficiency, lower expenses, and improve customer satisfaction. against this backdrop, we hypothesize thus: ho1: there is no statistically significant correlation between the use of self-service technology and the level of customer satisfaction. ho2: there is no statistically significant correlation between self-service technology and customer commitment. 2.3.2 service process blueprinting and customer retention the notion of satisfaction as a factor influencing consumers' contentment and consequent support has been the subject of increasing scholarly discussion in recent years. researchers such as lovelock and van der merwe (1999), noori and radford (1995), melnyk and denzler (1996), and hope and muhlemann (1997) have utilised service blueprinting as a means of innovating service delivery. this approach aims to enhance service simplicity and customer happiness. the argument was made that in order to achieve satisfaction, service delivery must be simplified and made user-friendly for clients. kumar et al. (2010) state that service blueprinting is a method that alters current service delivery processes. it enables managers to identify possible points of failure and create reliable procedures to prevent them. this ensures the provision of high-quality service and enhances customer satisfaction. by employing service blueprinting, one may proactively identify possible fall points, effectively addressing both the root cause of customer unhappiness and handling furious customers with tact (lewis & spyrakopoulos, 2001). this approach significantly enhances the likelihood of achieving customer satisfaction. in this regard, we hypothesize thus; american journal of business management, economics and banking volume 27 august 2024 p a g e | 7 www.americanjournal.org ho3: there is no statistically significant correlation between service process blueprinting and customer satisfaction. ho4: there is no statistically significant correlation between service process blueprinting and customer commitment. 2.4 theoretical review technology acceptance model (tam) the tam, devised by davis (1986), is a highly prevalent paradigm employed to elucidate user acceptance behaviour. this model is based on social psychology theory, namely the theory of reasoned action (tra) developed by fishbein and azjen in 1975. tra posits that beliefs have a significant impact on attitudes, which in turn shape intentions and ultimately drive behaviour. davis (1986, 1989) proposed the notions of perceived utility (pu), perceived ease of use (peou), attitude, and behavioural intention to use as the components of the tam. pu and peou are constructs that shape the views of end-users regarding technology. these beliefs, in turn, determine their attitude towards the technology, which ultimately influences their adoption of it. the acceptance or rejection of an invention is primarily determined by the value it is expected to provide to customers, including factors such as pu, peou, attitude, and behavioural intention. therefore, in order to assess the adoption of a technology in the aviation industry, it is crucial to give significant consideration to factors such as perceived utility, perceived simplicity of use, attitude, and behavioural intention. table 2.1: summary of literature gap on service delivery innovation and customer retention s/n author(s) / year of research title of work literature gap: population size 1. mcdermott, & prajogo, (2012) service innovation and performance in smes. 180 sme managers in australia 2. taghizadeh, rahman, hossain, & haque, (2020) characteristics of organizational culture in stimulating service innovation and performance. 171 bank managers in bangladesh 3. le, (2020). how transformational leadership facilitates radical and incremental innovation: the mediating role of individual psychological capital. 379 participants in 89 manufacturing and service firms in vietnam. 4. le, lei, le, gong, & ha, (2020). creating a culture of collaboration to foster both radical and gradual innovation, with a focus on the influence of sharing tacit and explicit knowledge. 371 participants in 68 chinese firms. 5. lei, ha, & le, (2020). the study examines the relationship between ethical leadership and both radical and incremental innovation, with a focus on the mediating function of tacit and explicit knowledge exchange. 365 participants from 115 vietnamese firms. 3.0 methodology research design: this study utilises a quasi-experimental research methodology. this strategy restricts the researcher's ability to exercise full control on the study elements, in contrast to the american journal of business management, economics and banking volume 27 august 2024 p a g e | 8 www.americanjournal.org experimental research approach which allows for easy manipulation. therefore, data in this study will be collected within the context of service delivery innovation and retention. population for the study: the population of this study was all the domestic and international airlines in nigeria. according to nigeria civil aviation authority, 24 airlines are operating in rivers state. table 1: list of aviation firms in rivers state international airlines s/n airlines address 1 air france 329 olu obansajo rd, port harcourt 2 lufthansa hotel presidential 3 qatar air cultural center port harcourt 4 ethiopian air block 3, elekahia housing estate 5 british airways waterlines building 169, aba express way 6 coronos airline port harcourt 7 turkish airline port harcourt international airport, omagwa 8 av cargo aviation omagwua 9 cargolux airlines omagwua 10 nordic global airlines omagwua domestic airlines 11 air peace 55b old aba road, rumuobiakani 12 dana air port harcourt international airport, omagwa 13 arik air eastern garden house 47 aba road, new gra 14 aero contractors air force base, port harcourt 15 max air port harcourt international airport, omagwa 16 ibom air port harcourt international airport, omagwa 17 first nations airlines eastern garden house, 10 ogbunabali 18 green nation airlines port harcourt international airport, omagwa 19 donier aviation air force base, port harcourt 20 med-view airlines port harcourt international airport, omagwa 21 azman airlines port harcourt international airport, omagwa 22 allied air port harcourt international airport, omagwa 23 discovery air omagwua 24 next oil aviation air force base, port harcourt source: businesslist.com.ng sample and sampling techniques: data was collected from the management staff of aviation organisations, including air traffic controllers, airport security managers, airport operations managers, air cargo managers, and customer service professionals, who have a minimum of five years of work experience. structured questionnaires were utilised for this purpose. a total of 120 questionnaires were distributed to 24 airlines in rivers state, with each airline receiving 5 copies. a total of 120 questionnaires were distributed to each of the 24 airlines operating in rivers state. methods of data analysis: in this study, the pearson product moment correlation coefficient was employed to test the hypotheses. american journal of business management, economics and banking volume 27 august 2024 p a g e | 9 www.americanjournal.org table 2: properties of service delivery process instruments indicators λ λ2 ave cr α self-service technology 0.80 0.95 0.822 sst1 0.845 0.714 sst2 0.921 0.848 sst3 0.897 0.805 sst4 0.900 0.810 sst4 0.911 0.830 sst5 0.888 0.789 service process blueprinting 0.80 0.94 0.763 spb1 0.899 0.808 spb2 0.847 0.717 spb3 0.898 0.806 spb4 0.901 0.812 spb5 0.931 0.867 customer satisfaction 0.82 0.96 0.848 cs1 0.894 0.799 cs2 0.911 0.830 cs3 0.944 0.891 cs4 0.912 0.832 cs5 0.891 0.794 cs6 0.893 0.797 customer commitment 0.80 0.95 0.800 cc1 0.901 0.812 cc2 0.921 0.848 cc3 0.859 0.738 cc4 0.866 0.750 cc5 0.855 0.731 hint: standardized loading (λ); average variance extracted (ʃλ2÷5); composite reliability (cr) ((ʃλ)2÷((ʃλ)2+ʃ(1-λ2)); cronbach alpha (α) the studies conducted showed that the ave and composite reliability, as well as the spss output of cronbach's alphas for the twenty-one (21) statement items, indicated a high degree of reliability in the service delivery process dimensions. all goods had loadings exceeding 0.70. furthermore, none of the items had significant cross-loading on aspects that were not meant to be examined. the ave exceeded the threshold of 0.50, so confirming discriminant validity. table 3: discriminant validity construct sst spb cs cc sst 0.95 0.353 0.399 0.333 spb 0.353 0.94 0.351 0.389 cs 0.399 0.351 0.92 0.317 cc 0.333 0.389 0.317 0.95 table 3 shows that the average variance retrieved exceeds the criterion of 0.5 in all instances. specifically, the values are 0.80 for self-service technology, 0.80 for service process blueprinting, 0.82 for customer happiness, and 0.78 for customer commitment. the composite dependability coefficient american journal of business management, economics and banking volume 27 august 2024 p a g e | 10 www.americanjournal.org for self-service technology, service process blueprinting, customer satisfaction, and customer commitment is 0.95, 0.94, 0.92, and 0.95 correspondingly. these coefficients above the 0.7 criterion for convergent reliability, indicating that all the scales meet the requirements for further analysis and are consistent. it is evident that the square root of the average variance retrieved (values in bold) for each construct is significantly greater than all off-diagonal components of the correlation matrix, which indicate the correlation between the constructs. consequently, the criterion of discriminant validity has been met. 4.0 results and discussion a total of one hundred and twenty (120) copies of questionnaires distributed. ninety eight (98) of 81.7% copies of questionnaires were retrieved. nineteen (19) copies of questionnaires of 15.8% were discarded. ninety-eight (98) representing 81.7% of the total copies of questionnaires distributed was useful in the study. relationship between dimensions of service delivery process and measures of customer retention using pearson product moment correlation table 4. correlation analysis showing the relationship between dimensions of service delivery process and measures of customer retention correlations self-service technology service process blueprinting customer satisfaction customer commitment self-service technology pearson correlation 1 .912** .786** .799** sig. (2-tailed) .000 .000 .000 n 98 98 98 98 service process blueprinting pearson correlation .912** 1 .886** .859** sig. (2-tailed) .000 .000 .000 n 98 98 98 98 customer satisfaction pearson correlation .786** .886** 1 .959** sig. (2-tailed) .000 .000 .000 n 98 98 98 98 customer commitment pearson correlation .799** .859** .959** 1 sig. (2-tailed) .000 .000 .000 n 98 98 98 98 **. correlation is significant at the 0.01 level (2-tailed). source: field survey data, 2024, spss 25 output decision the table above presents a pearson correlation coefficient (r) of 0.786 and a probability value of 0.000 (sig< 0.05). this discovery indicates a robust and favourable relationship between the utilisation of self-service technologies and the degree of customer satisfaction among airlines in rivers state. moreover, the link between self-service technology and consumer contentment of airlines in rivers state is estimated to be 61.7% based on a coefficient of determination of 0.617. this indicates a strong and reliable correlation between self-service technologies and consumer satisfaction. with a american journal of business management, economics and banking volume 27 august 2024 p a g e | 11 www.americanjournal.org significance level of less than 0.05 and a correlation coefficient more than 0.5, the null hypothesis was rejected in favour of the alternative hypothesis. this indicates that there is a statistically significant correlation between the use of self-service technology and the level of pleasure experienced by consumers of airlines in rivers state. the pearson correlation coefficient (r) between self-service technology and client commitment is 0.799, with a probability value of 0.000 (sig< 0.05). this discovery indicates a robust and significant relationship between the utilisation of self-service technologies and the degree of customer dedication in the airlines operating in rivers state. moreover, the coefficient of determination of 0.638 demonstrates that there is a strong and statistically significant link of 63.8% between self-service technology and consumer commitment in the airlines of rivers state. with a significance level below 0.05 and a correlation coefficient over 0.5, the null hypothesis was rejected in favour of the alternative hypothesis. this indicates that there is a statistically significant correlation between the use of selfservice technologies and the level of consumer loyalty among airlines in rivers state. the table above displays a pearson correlation coefficient (r) of 0.886 and a probability value of 0.000 (sig< 0.05). the results indicate a robust and significant relationship between service process blueprinting and customer satisfaction among airlines in rivers state. moreover, the coefficient of determination for the connection between service process blueprinting and customer satisfaction of airlines in rivers state is 0.785, which translates to a strong and statistically significant link of 78.5% between these two variables. with a significance level below 0.05 and a correlation coefficient over 0.5, the null hypothesis was rejected in favour of the alternative hypothesis. this indicates that there is a statistically significant correlation between service process blueprinting and customer satisfaction of airlines in rivers state. table 6 analysis reveals a pearson correlation coefficient (r) of 0.859 and a probability value of 0.000 (sig< 0.05). this discovery indicates a significant and relevant connection between the implementation of service process blueprinting and the degree of client dedication across airlines in rivers state. moreover, based on a coefficient of determination (r2) of 0.738, it can be concluded that there is a significant correlation between service process blueprinting and customer commitment of airlines in rivers state. this correlation accounts for 73.8% of the variability in customer commitment. since the p-value is less than 0.05 and the correlation coefficient is more than 0.5, we may conclude that the null hypothesis is rejected and the alternative hypothesis is accepted. this suggests that there is a statistically significant correlation between the process of service blueprinting and the level of customer commitment across airlines in rivers state. 4.1 discussion of the findings this section of the chapter discusses the stated findings of the study on the relationship between service delivery process and customer retention. i. self-service technology significantly and positively correlates with customer retention. in summary, the pearson product moment correlation coefficient indicates that the perception of selfservice technology is a more reliable predictor of customer retention inside a given organisation compared to a measure of customer retention that does not take into account the performance of the organisation. the service delivery process was anticipated to have a significant impact on customer retention, as it reflects how airlines perceive their own service delivery process as an external element. however, self-service technology has not been successful in capturing a large portion of the customer american journal of business management, economics and banking volume 27 august 2024 p a g e | 12 www.americanjournal.org retention dynamics, which is different from previous research on self-service technology. in previous studies, perceptions of organisations were able to predict customer retention measures, even when other factors such as customer satisfaction, commitment, and loyalty were taken into account. the research aligns with the findings of bitner et al., (2002) and meuter, bitner, ostrom, and brown, (2005), which indicate that self-service technologies (ssts) contribute to increased customer loyalty. similarly, demirci orel and kara, (2014) and lin and hsieh, (2007) discovered a positive correlation between sst user loyalty and post-behavioral intentions. demirci orel and kara (2014) found that self-checkout service quality has a favourable impact on customer loyalty through the indirect influence of customer satisfaction. they examined many aspects of self-service quality to reach this conclusion. ii. service process blueprinting significantly and positively correlates with customer retention. the evidence indicates a significant relationship between service process blueprinting and customer retention in the airline industry. service process blueprinting has a noteworthy influence on three aspects of customer retention: customer satisfaction, customer commitment, and customer loyalty. significantly, the findings of this thesis indicate that the service delivery process is a strong predictor of customer retention outcomes, even after accounting for the effects of service process blueprinting. service process blueprinting was found to have a robust and favourable correlation with customer retention measures. prior research has identified a substantial and favourable correlation between the variables. fernandes and morgado (2018) discovered a clear and direct correlation between post-recovery happiness and high-contact customised services, especially when these services are begun by competent staff. in their study, muhammed, fabiha, and saraj (2017) discovered a positive correlation between customer engagement in the service process and the amount of value co-creation with staff. 5. conclusion the findings indicate that the dimensions of service delivery process, namely self-service technology and service process blueprinting, have a key role in attaining customer retention of airlines in rivers state. the results on the aspects of service delivery process, namely self-service technology and service process blueprinting, have a major beneficial impact on attaining customer retention, which includes customer satisfaction and customer commitment, for airlines in rivers state. specifically, it was concluded that: a. the findings on the correlation between self-service technology and customer retention (customer satisfaction and customer commitment) demonstrated a significant and favourable influence. b. based on the second research question, the study indicates that there is a strong and significant beneficial association between service process blueprinting and customer retention (customer satisfaction and customer commitment) of airlines in rivers state. 5.1 recommendations based on the documented findings and conclusions of this study, the following recommendation were advanced: i. this study suggests that airlines should ensure that their self-service technology are readily available and user-friendly. customers expressed dissatisfaction with the challenges encountered american journal of business management, economics and banking volume 27 august 2024 p a g e | 13 www.americanjournal.org while utilising self-service technologies in the aviation industry. hence, the inclusion of less complex self-service technology is necessary to enhance the provision of high-quality services. ii. furthermore, airlines should be cognizant of the channels via which their consumers get information about their service offerings in order to successfully control their external communications. iii. iii. airlines should prioritise aligning their operations to consistently provide a captivating customer experience by effectively engaging with consumers to gain a deep understanding of their perceptions and opinions of the airline's services. iv. airlines should see consumers as significant assets, taking into account their formal duties and voluntary actions that contribute to the business environment. v. in addition, it is important for them to acknowledge that consumers engage in voluntary behaviour without any consideration of receiving a bonus or other forms of incentives. rather, they volunteer to support their companies. references 1. abbasi, a. s., & alvi, a. k. 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(2012). antecedents of technology-based self-service acceptance: a proposed model. services marketing quarterly, 33(3), 195-210. 18. raphael odoom, george cudjoe agbemabiese and robert e. hinson (2020). service recovery satisfaction in offline and online experiences. marketing intelligence & planning, 38(1), 1-14 19. seyed, s. s., mauricio, p., junzhao, m. & gerri, s. (2017). the impact of service failure and recovery on target and observing customers: a comparative study. journal of hospitality marketing and management, 26, 8, 889-910. 20. teixeira, j.g., patrício, l., huang, k.h., fisk, r.p., nobrega, l., & constantine, l. (2017). the minds method: integrating management and interaction design perspectives for service design. journal of service research, 20(3), 240-258 21. yu, e., & sangiorgi, d. (2018). service design as an approach to implement the value cocreation perspective in new service development. journal of service research, 21(1), 40-58. 22. zach, f. j., & hill, t. l. (2017). network, knowledge and relationship impacts on innovation in tourism destinations. tourism management, 62, 196–207. american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 7 www.americanjournal.org analysis of banks activities that have successfully implemented digital innovations in uzbekistan gulbakhor matyakubovna bakoeva1 1phd on economic sciences, associate professor of “international finance and investments” department, university of world economy and diplomacy. associate professor of “economics and business management” department, nordic international university in tashkent gulibakoeva@gmail.com, gbakoeva@uwed.uz a b s t r a c t k e y w o r d s the article focuses on analysis of banks activities that have successfully implemented digital innovations in uzbekistan. the main tendencies and measures, concerned to digitalization of banking and financial operations were researched. digitalization, emission, bank transactions, financial services, fintech, bank capitalization. introduction while the uzbek banking sector has traditionally been dominated by traditional, branch-based models, recent years have seen a surge in digital transformation efforts. the increasing adoption of smartphones and internet access among the uzbek population has fueled demand for digital banking services. the uzbek government has actively promoted digital financial inclusion and supported initiatives for a cashless society, fostering a favorable environment for digital banking innovation. the emergence of new fintech players and the growing popularity of digital payment platforms have created competitive pressure on traditional banks to innovate and adapt. today, 22 million people in uzbekistan use remote banking services, which is more than half of the country's population. with the adoption of the law of the republic of uzbekistan "on payments and payment systems", 1the service infrastructure of payment system operators operating in our country has increased dramatically. 2in addition, 28 payment organizations specializing in providing digital financial services were registered. in order to develop contactless payments, the humo retail payment system was created, which fully meets international standards, and this, in turn, created a competitive environment in the field of bank cards. the share of online payments in the country is growing really fast in 2022 alone, twice as much money was transferred through payment services as compared to a year ago. uzbekistan is gradually moving to the online banking system. after signing the decree of the president of the republic of uzbekistan "on measures to fundamentally improve the activities of the central 1 the president of the republic of uzbekistan, shavkat mirziyoyev, signed, on 1 november 2019, the law of the republic of uzbekistan no. zru-578 of 1 november 2019 on payments and payment systems ('the law'). https://lex.uz/uz/docs/5527922 https://lex.uz/uz/docs/5527922 american journal of business management, economics and banking volume 31 december 2024 p a g e | 8 www.americanjournal.org bank of the republic of uzbekistan", the establishment of "digital" banks and banking units specializing in retail banking services in the banking system and customer service using innovative banking technologies tasked with further expanding the display quality. accordingly, "anor bank" and "tbc bank" were registered as digital banks for the first time in uzbekistan in 2020. also, the number of technological start-ups and it companies that contribute to the growth of the digital economy in uzbekistan is increasing. in order to develop the it sector, separate institutes and directions focused on this sector have been opened. the number of students studying in the field of it has exceeded 6000. banks are one of the main sectors in the digitization of the economy. in the early 2000s, the first online banking system was launched in uzbekistan as part of large-scale efforts for financial modernization. and until now this system is developing. uzbekistan's online banking system works like other countries. especially the covid-19 pandemic has made a great contribution to the development of remote banking services. as of december 1, 2021, the number of users of remote banking services has exceeded 20 million. the number of atms in the republic increased by 10% compared to the level of 2020. 3in 2021, 12,814 atms will be installed in our country. in addition, there are more than 26.5 million bank cards in circulation, which is 500,000 more than last year. uzbekistan started to develop digital banking in 2018. the goal is to make all banking services remote both entrepreneurs and residents should be able to receive them by phone or the internet. the covid-19 pandemic has significantly accelerated the shift to remote banking. in 2020, the number of atms increased by 33%, and the number of bank cards increased by 27%. in addition, fully digital banks (tbc uz, anorbank) have appeared, and traditional banks have expanded their online service offerings. in october 2021, the central bank allowed banks to identify customers remotely. this allowed customers to use remote services even in previously unserved banks. let's see what conveniences this system brings to the population: • remote access to clients' accounts; • able to manage their funds at home or on the road through their smartphones; • remote money transfers; • get an online loan; • enables enhanced security features such as transaction alerts for added peace of mind. the commercial bank "anor bank" in uzbekistan is actively applying digital transformation with the aim of becoming a leading player in the developing digital economy of the country. although specific details about their internal systems and technologies are not publicly available, we can analyze their publicly announced initiatives and general trends in uzbek digital banking to provide insights for your thesis: anor bank's digital strategy is likely to focus on improving customer experience, expanding reach and improving operational efficiency. they can invest in a robust online and mobile banking platform that offers features such as account management, mobile payments, bill payments and potentially 3number of atms in uzbekistan increased by 10%23.12.2021 https://kun.uz/en/news/2021/12/23/number-of-atms-in-uzbekistan-increased-by10#:~:text=as%20of%20december%201%2c%202021%2c,december%201%20of%20last%20year https://kun.uz/en/news/2021/12/23/number-of-atms-in-uzbekistan-increased-by-10#:~:text=as%20of%20december%201%2c%202021%2c,december%201%20of%20last%20year https://kun.uz/en/news/2021/12/23/number-of-atms-in-uzbekistan-increased-by-10#:~:text=as%20of%20december%201%2c%202021%2c,december%201%20of%20last%20year american journal of business management, economics and banking volume 31 december 2024 p a g e | 9 www.americanjournal.org personalized financial services such as loan applications or investment recommendations. their online platform likely includes security features such as advanced encryption and multi-factor authentication to protect customer data. the bank uses data analytics to tailor customer behavior and services, offers 24/7 customer support across multiple channels, and is exploring ai-powered chat-bots for faster and more efficient support can be their digital strategy is likely to emphasize reaching the underserved population by providing affordable and convenient financial services through digital channels. general trends in uzbek digital banking show increasing attention to: central bank initiatives: the central bank of uzbekistan is actively promoting digitization in the banking sector, encouraging banks to adopt new technologies, develop innovative financial products, and increase financial inclusion. mobile payment systems: mobile payment systems such as click, payme and uzcard are becoming increasingly popular in uzbekistan, providing consumers with convenient and convenient ways to make payments and transfer money. growth of e-commerce: the growth of e-commerce in uzbekistan is increasing the demand for online payment solutions, creating opportunities for banks to integrate with e-commerce platforms and ensure secure payment processing. fintech innovation: uzbek fintech startups are emerging, developing innovative financial solutions for specific needs such as microcredit, insurance and wealth management, and developing cooperation between banks and fintech companies. table 1.3.1 anorbank mobile app features & results feature description i. easy registration with face id via nfc streamlined account setup using facial recognition and near field communication ii. convenient interface user-friendly and intuitive design for easy navigation iii. smart transfer automated and simplified money transfers iv. ordering and delivery of cards easy card ordering and delivery v. currency exchange operations convenient foreign exchange transactions vi. payments for services effortless payment for various services vii. processing loans convenient loan application and management viii. opening and managing deposits easy access to deposit accounts ix. manage security through life id enhanced security through biometric identification x. block cards immediate card blocking for security xi. transfers between accounts and cards seamless transfers between accounts and cards xii. information and statements on cards and account numbers easy access to account information and statements xiii. car payments simplified car loan payments source: compiled by author based on anor bank official site american journal of business management, economics and banking volume 31 december 2024 p a g e | 10 www.americanjournal.org more than 200 organizations transferred their monthly salaries with a total of 20 billion soums through anor bank and achieved several other achievements. thus, to date, almost all banks in our country provide remote services through the mobile banking system. in the table below, uzbekistan the number of users of remote service banks is given. table 2.3.1 from systems providing remote banking services number of users as of november 1, 2023. № bank legal entities and individual entrepreneurs individuals overall 1 milliy bank 97 296 1 614 472 1 711 768 2 o‘zbekiston sanoat-qurilish banki 72 183 5 993 998 6 066 181 3 agrobank 197 533 5 378 755 5 576 288 4 ipoteka-bank 164 079 2 793 710 2 957 789 5 mikrokreditbank 69 436 980 080 1 049 516 6 xalq banki 117 911 3 904 633 4 022 544 7 garant bank 6 853 93 383 100 236 8 biznesni rivojlantirish banki 29 407 256 665 286 072 9 turonbank 47 590 456 346 503 936 10 hamkorbank 123 737 1 551 297 1 675 034 11 asaka bank 36 586 906 140 942 726 12 ipak yo‘li banki 60 119 2 126 982 2 187 101 13 ziraat bank uzbekistan 4 370 55 051 59 421 14 trastbank 48 039 146 376 194 415 15 aloqabank 62 638 1 481 822 1 544 460 16 kdb bank o‘zbekiston 16 406 27 869 44 275 17 soderot bank toshkent 357 2 400 2 757 18 universal bank 11 961 142 644 154 605 19 kapitalbank 35 391 1 212 057 1 247 448 20 octobank 2 714 66 217 68 931 21 davr-bank 26 088 193 682 219 770 22 invest finance bank 17 731 386 832 404 563 23 asia alliance bank 20 025 627 921 647 946 24 orient finans bank 29 552 521 333 550 885 25 madad invest bank 1 104 2 611 3 715 26 avo bank 109 405 514 27 poytaxt bank 1 090 10 491 11 581 28 tenge bank 2 221 629 822 632 043 29 tbc bank 0 1 721 587 1 721 587 30 anor bank 23 230 3 524 261 3 547 491 31 uzum bank 0 1 440 000 1 440 000 overall 1 325 756 38 249 842 39 575 598 source: compiled by the author based on central bank data https://cbu.uz/uz/statistics/paysistem/1512282/ https://cbu.uz/uz/statistics/paysistem/1512282/ american journal of business management, economics and banking volume 31 december 2024 p a g e | 11 www.americanjournal.org from this data we can see that the total number of users of remote services is 39,575,598, of which 1,325,756 are legal entities, and 38,249,842 are individuals. industrial construction bank of uzbekistan provides the most remote services. we can see that it is the leading bank. avo bank has the lowest index with 514 clients. the rapid evolution of the global financial landscape has seen the rise of online banking, which has revolutionized the way individuals and businesses interact with financial institutions. although the united states is a pioneer in this field and has developed complex digital banking systems, the question arises: can these models be effectively applied to other countries, especially a developing country like uzbekistan? this section will examine the possibilities and problems of adapting the us online banking structure to the specific conditions of uzbekistan. it explores the benefits, pitfalls, and necessary adjustments for successful implementation, contributing to a broader understanding of the intersection of technology, regulation, and cultural context in shaping the nation's financial landscape. uzbekistan has made significant strides in digital banking, becoming a leader in the central asian region. the widespread adoption of mobile banking, coupled with the government’s push for digitalization, has created a conducive environment for innovation. positive aspects: ▪ mobile banking is widely used, with a majority of the population owning smartphones. ▪ start-ups and established institutions are offering innovative financial services, particularly in microfinance and payment solutions. ▪ regulatory reforms and initiatives are promoting digital financial inclusion. areas for further development: ▪ while mobile penetration is high, financial literacy remains a challenge, hindering full adoption of digital banking services. ▪ fragmented systems and lack of standardized apis hinder seamless data exchange and cross-border transactions. ▪ as reliance on digital banking grows, robust cybersecurity measures are crucial to protect against fraud and data breaches. ▪ while urban areas see rapid digitalization, rural communities often lack reliable internet connectivity and financial infrastructure. table 1. swot analysis of uzbekistan’s digital banking system category factors strengths * government support for digital finance * growing digital literacy * young and tech-savvy population * potential for innovation * emerging fintech landscape weaknesses * limited infrastructure (internet access) * cybersecurity concerns * lack of trust in digital banking * limited financial literacy * outdated technology in some institutions opportunities * expanding financial inclusion * developing new digital products & services * partnerships with fintech companies * improved efficiency & cost-effectiveness * data analytics and personalized services threats * economic volatility * regulatory uncertainty * competition from international players * cybersecurity attacks * dependence on technology source: compiled by author based on information american journal of business management, economics and banking volume 31 december 2024 p a g e | 12 www.americanjournal.org us online banking model: main features and benefits the us online banking model is characterized by a focus on customer experience, technological innovation and product diversification. famous examples like ally bank show the strengths of this approach. branchless banking reduces additional costs, provides competitive prices and high interest rates, which is an important advantage in a developing economy like uzbekistan. these institutions prioritize user-friendly interfaces, 24/7 accessibility and personalized financial services that appeal to younger generations accustomed to digital convenience. the us model also demonstrates the power of technology, using ai-powered chat bots, data analytics and mobile-first design to streamline operations, personalize services and improve customer satisfaction. this approach to banking can contribute to financial inclusion by making financial services accessible to a wider range of individuals and communities. adaptation of us digital banking structure to the uzbek context: opportunities and problems while the us model offers valuable lessons, applying it to uzbekistan requires careful consideration of the country's unique environment and existing infrastructure. important challenges include: road map for uzbekistan to overcome these difficulties and successfully implement the us online banking model in uzbekistan, a clearly defined approach is necessary: start with pilot programs targeting specific populations or geographic areas to assess opportunities and gather valuable data. this iterative approach allows for adaptation and improvement based on user feedback and market conditions. develop products and services specifically designed to meet the unique needs and preferences of uzbek customers. understanding local financial behavior and tailoring solutions accordingly is critical. partnerships and collaboration: leveraging the expertise of fintech companies and other stakeholders is key. partnerships can facilitate technology integration, improve payment system interoperability, and improve customer experience. america's banks are at the forefront of implementing innovative technologies to improve customer experience, improve efficiency and increase financial inclusion. while some technologies may not be directly transferable to uzbekistan due to infrastructure or regulatory differences, others have great potential for adaptation. below, get acquainted with the main technologies and their possible application in uzbekistan: artificial intelligence (ai) and machine learning: in the us, ai-powered chatbots are revolutionizing customer support, handling routine queries and solving problems quickly. machine learning algorithms are used for fraud detection, credit scoring and personalized financial recommendations. artificial intelligence chatbots in uzbekistan can provide 24/7 support in uzbek, russian and english languages, which can answer various queries. machine learning can be used to develop more accurate credit scoring models, improving access to credit for individuals and businesses. biometric authentication: facial recognition, fingerprint scanning, and voice authentication are used in the u.s. for secure access and transaction authorization, increasing security and convenience. in uzbekistan, biometric authentication improves security and prevents fraud in digital banking. however, privacy and data security issues must be carefully considered. american journal of business management, economics and banking volume 31 december 2024 p a g e | 13 www.americanjournal.org open banking: us open banking regulations allow customers to share their financial information with third-party applications, fostering a more interconnected and personalized financial ecosystem. introducing open banking regulations in uzbekistan can stimulate innovation by allowing fintech companies to develop new financial services and expand consumer and business opportunities. blockchain technology: the us is exploring blockchain for secure and transparent cross-border payments, digital identity management and supply chain financing. in uzbekistan, blockchain can improve the efficiency and security of cross-border payments, especially for its growing trade ties. it can also facilitate the secure operation of digital identity systems and simplify financial transactions. cloud computing: cloud-based platforms allow american banks to operate more flexibly, expand services and reduce infrastructure costs. in uzbekistan, cloud computing is crucial for banks, allowing them access to advanced technologies and infrastructure without significant investment. mobile-first banking: mobile apps are the primary interface for many american banks, offering a range of features from account management to payments. the mobile-first approach is especially relevant in uzbekistan, where smartphones are widespread. developing user-friendly mobile banking apps with intuitive features can significantly improve customer experience. data analytics: banks of america use data analytics to understand customer behavior, predict financial needs, and develop personalized product offerings. in uzbekistan, data analytics can help banks tailor products and services to specific customer segments, increase financial inclusion, and improve customer satisfaction. although these technologies have great potential, it is important to consider the unique context of uzbekistan. regulatory, infrastructure, and cultural factors must be carefully considered when adapting these technologies. a successful transition to a digital banking ecosystem requires a phased approach, starting with pilot projects and phased implementation. the introduction of digital banking in uzbekistan creates unique opportunities and challenges that require a thorough understanding of the country's unique context. while digital banking holds great promise for increasing financial inclusion, improving efficiency and improving customer experience, a number of challenges need to be addressed for its successful implementation and widespread adoption. one of the main challenges is underdeveloped internet infrastructure, which hinders seamless adoption of digital banking services, especially in rural areas. patchy internet access and unreliable connections are a serious obstacle for those outside major urban centers. in addition, a significant portion of the population lacks the necessary digital literacy skills to effectively use online banking platforms. this knowledge gap not only limits access, but also creates vulnerabilities against online fraud. building trust in digital banking systems is another way. many potential users have concerns about data privacy and security, particularly when it comes to online transactions. strong regulatory frameworks, robust cybersecurity measures, and transparent communication about data protection practices are critical to building trust and encouraging broad adoption. the regulatory environment for online banking in uzbekistan is still being developed. clear regulations on data privacy, cybersecurity, consumer protection and licensing for digital financial service american journal of business management, economics and banking volume 31 december 2024 p a g e | 14 www.americanjournal.org providers are essential to create a stable and trustworthy environment that attracts investment and encourages innovation. another challenge is the integration of existing payment systems with online banking platforms. ensuring seamless interoperability between different payment systems is critical to a seamless user experience and encourages wider adoption. bridging the digital divide and providing financial services to disadvantaged populations, especially in rural areas, requires targeted initiatives and tailored solutions. digital banking solutions must be designed to meet the unique needs of these communities, taking into account factors such as technology access, literacy levels, and cultural preferences. ways of overcoming digital banking barriers in uzbekistan: 1. closing the digital divide: expanding internet access: invest in fiber optic expansion to connect rural communities, encourage partnerships with telecommunications companies, and support community-driven internet initiatives. making data accessible: offer affordable data plans tailored for digital banking users to reduce cost barriers. 2. strengthen digital literacy: nationwide training: implement free or subsidized training programs for basic computer skills, online security and digital banking with a focus on rural areas. collaborating with education: integrating digital literacy into school curricula and offering training in community centers. user-friendly platforms: develop intuitive online banking interfaces with clear instructions and language options. dedicated support: offer personalized customer service channels to help users. 3. building trust and confidence: strong privacy policies: implement strong policies that protect user data and ensure transparency in data collection and use. invest in security: use advanced cybersecurity measures such as multi-factor authentication, encryption and fraud detection. open communication: clearly communicate data protection policies and security practices to build trust. collaborative initiatives: work with ngos and consumer groups to address user concerns and develop confidence-building programs. 4. regulation of the regulatory landscape: clear regulations: developing comprehensive regulations for online banking, including data privacy, cyber security, consumer protection and licensing. encourage innovation: create a regulatory testing environment to experiment with new digital banking products. promoting financial inclusion: developing policies that make financial services accessible to underserved populations. american journal of business management, economics and banking volume 31 december 2024 p a g e | 15 www.americanjournal.org 5. creating a seamless payment ecosystem: interoperability standards: establishing standards for seamless integration of payment systems and online banking platforms. single payment gateways: development of a national payment gateway connecting all major payment systems. encouraging collaboration: fostering collaboration between financial institutions, payment providers and technology companies. 6. reaching out to underserved communities: tailored solutions: developing digital banking solutions tailored to the needs of rural communities, taking into account their unique circumstances. local partnerships: partner with ngos, community groups, and microfinance institutions to provide outreach and financial education to underserved populations. mobile-first approach: use mobile technology to offer convenient and convenient banking services. financial literacy programs: implementation of programs to empower individuals in rural areas to effectively access digital banking tools. by implementing these solutions, uzbekistan can bridge the digital divide, strengthen trust in online banking, and create an environment that supports financial inclusion and empowers citizens to participate in the digital economy. despite these challenges, the future of digital banking in uzbekistan holds great promise. the government recognizes the importance of digitization and has launched various initiatives to improve digital infrastructure and promote financial inclusion. continued investment in infrastructure development, digital literacy programs and regulatory frameworks will be critical to developing a vibrant digital banking ecosystem. the emergence of uzbek fintech startups that develop innovative financial solutions tailored to specific needs is adding more dynamism to the sector. cooperation between banks and fintech companies can accelerate the adoption of innovative technologies and solve specific problems faced by the banking sector. references 1. global online banking market report by banking type, software type, service type, and region 2024-2032.” imarc group. april 2024, id: 5769089. 2. khamidulin m. b. , usmanov a . s. , abdullaeva sh . r . problems and prospects for forming market capitalization (value) of commercial banks of uzbekistan ( scopus ) european journal of molecular & clinical medicine issn 2515-8260 volume 07 issue november , 2020 3. buy now pay later not yet a major threat to credit cards (credit performance untested as regulation evolves) // fitch ratings: url: https://www.fitchratings.com/research/banks/buynow-pay-later-not -yet-major-threat-to-credit-cards-credit-performance-untested-as-regulationevolves-10-18-2021 4. digital government factsheet france // european commission 2019 p. 43.uk fintech: moving mountains and moving mainstream // eygm limited. — 2020 — p. 147. https://www.fitchratings.com/research/banks/buy-now-pay-later-not-yet-major-threat-to-credit-cards-credit-performance-untested-as-regulation-evolves-18-10-2021 https://www.fitchratings.com/research/banks/buy-now-pay-later-not-yet-major-threat-to-credit-cards-credit-performance-untested-as-regulation-evolves-18-10-2021 https://www.fitchratings.com/research/banks/buy-now-pay-later-not-yet-major-threat-to-credit-cards-credit-performance-untested-as-regulation-evolves-18-10-2021 american journal of business management, economics and banking volume 31 december 2024 p a g e | 16 www.americanjournal.org 5. fintech and financial stability potential influence of fintech on financial stability, risks and benefits / vučinić mj // journal of central banking theory and practice. 2020. no. 2. p. 4366. 6. fintech and market structure in the covid-19 pandemic implications for financial stability // financial stability board 2022 p. 26. 7. global fintech market report 2021: market was valued at $7301.78 billion in 2020 forecast to 2026 // yahoo finance: url: https://finance.yahoo.com/news/global-fintech-market-report2021-130300659.html 8. bakoeva, g. m. (2024). the positive impact of the financial technology industry on the financial stability of countries in crisis conditions. conferencea, 13-18. 9. bakoeva, g. m. (2024). the essence of transformation of the banking sector in the context of the implementation of modern financial technologies. naturalista campano, 28(1), 2569-2575. 10. matyakubovna, b. g. (2024). improving financial technologies in central asia countries. world economics and finance bulletin, 35, 1-7. 11. bakoeva, g. m. (2023, august). peculiarities of the current situation of the banking ipo market. in international scientific and current research conferences (pp. 7881). 12. bakoeva, g. m. (2021). foreign experience in applying ipo practice in uzbekistan’s securities market and potential of using derivatives. international relations: politics, economics, law, 2020(1), 48-57. https://www.researchgate.net/profile/milena-jovovic-vucinic?_sg%5b0%5d=cu8rafbtp9wnhc6eiaz_avjwu7978xbjwqkanp8bckj6_wkqdx3db9emfqqqzqwycm3euby.xglhxklhzhofweaijl6pofa3bveyz1_z5zobivz9fxup_bqrv1qhil_sqhxblweehlvtpur_wgvg2lsluialog&_sg%5b1%5d=dlxoxscbttj2ihcx1fyqswr8-a0y3qwqzvqbebxe3f4a0scccyvdeaf2hhlriakl0fnnos4.z0l5bmbpi1yr7hwbmtp8iqlxp5amzsy1tw5lpkgd7jz1zmbiprfobffawth_r2jf1jhjbyz4umfyhzyx1l1slg https://finance.yahoo.com/news/global-fintech-market-report-2021-130300659.html https://finance.yahoo.com/news/global-fintech-market-report-2021-130300659.html american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 73 www.americanjournal.org business management and the characteristics of international e-marketing and its impact on the consumer ghufran a. mohammed2 university of baghdad ah.ghufran1991@gmail.com a b s t r a c t k e y w o r d s marketing: it is the processes related to planning the implementation of concepts related to pricing, promotion and distribution of ideas, goods and services in order to achieve exchanges towards satisfying individuals and meeting the objectives of the organization. marketing concept: it is a social process through which individuals or groups get what they need or want through exchanges between them for products and determining their values. 1needs, desires, and demand needs: they represent the basics that a person seeks in order to obtain them, such as food, clothing, protection, safety, and respect. desires: they represent wishes that the individual desires to be fulfilled, depending on the environment in which he lives. demand: it represents the quantity required by individuals of a particular good or service. during a specified period of time. 2products, services and expertise products: the consumer seeks to achieve the best benefits in exchange for the money he paid in order to obtain them. experience: it is the experience that the marketer possesses to achieve distinction and creativity from other producers or marketers. 3value, cost and satisfaction value: examples of it include a person who wants to move from his place of residence to his place of work by means of transportation such as bicycle, taxi, bus, but he will set a number of criteria that distinguish one unit from another. satisfaction wants it: it represents the results achieved from the use of that product exclusively, and it does not have to be what is less expensive than others. 4 exchange and relationships individuals can satisfy their needs or desires through exchange q / what are the conditions that must be achieved in the realization of the marketing exchange process? c / 1the presence of at least two parties in the exchange process 2each party owns something and this may be of value to the other party 3each party has the ability to communicate and deliver american journal of business management, economics and banking volume 15 august, 2023 p a g e | 74 www.americanjournal.org introduction this concept is characterized by its components in the following: the size of the market is affected by the number of individuals dealing in it the necessity for individuals to possess resources that enable them to obtain or benefit from the products available in the market that individuals have the desire to use these resources in the exchange process philosophical orientations for the development of the concept of marketing: we mean by that the intellectual orientation pursued by the management of the organization, which represents in its reality the administrative philosophical approved during a previous or later era, which was planned in its dealings with target markets and determining the relative weight that gives its interests towards its goals and the goals of society(1). it is possible to say that the philosophical orientations of the concept of marketing and its applications passed through the following stages(2): 1the concept of production: the main objective of all organizations operating in the field of industry was the productive activity first, and therefore the manufacturers were at the same time the market suppliers and influencers in the nature and form of the demand achieved for the product. this is done by adopting a policy of largescale production and low costs for distribution(3). 2the selling concept: if consumers are left as they are, it is natural that their purchase of products will be below the level sufficient to achieve profits, and that the organization must exercise sufficient sales and promotional efforts to achieve that profitable purchase(4). 3the concept marketing: this concept appeared in the mid-fifties of the last century, production is the center in work or manufacturing and then selling to show a concept based on saying that it is not correct to search for the right consumer if you did not produce it, but it is correct to provide the appropriate product to the consumer(5). drawing page 34 the difference between the selling and marketing orientation q/ what are the most important reasons that led to the emergence of the marketing concept 1the decline in the level of sales achieved by organizations 2the slow growth in the current markets 3the change in the tastes and desires of consumers 4the intensification of competition between marketers to search for available and originally identified opportunities in the market 5the increase in marketing costs spent on media activities, sales promotion and consumer service 4the consumer concept: many marketing organizations have developed the marketing concept into the consumer concept, as this is represented by the logical extension of the marketing concept 5the social concept of marketing: criticisms directed at the marketing concept and the consumer concept athe cost of marketing performance has become very high bthe consumer obtains misleading, incomplete and sometimes incorrect information, which is reflected in the accuracy and integrity of the marketing decisions he takes cthe marketing system allowed with the passage of more commodities that, when used, produce health risks and safety risks dthe emergence and dominance of new social concepts that have been reflected in the marketing philosophy the social concept of marketing: it is the expression of the organization’s mission to determine the needs, desires and interests of the target markets to achieve the desired satisfaction in an efficient and effective way that outperforms competitors and in a way that preserves consumers society as best as possible. this definition would include the following dimensions: marketers build an ethical relationship with the community through the marketing applications they practice. its application to the marketing social orientation drawing page 37 the pillars of the social concept of marketing marketing ethics: they are the principles and standards that must be followed in the marketing process in order for the performance to be acceptable american journal of business management, economics and banking volume 15 august, 2023 p a g e | 75 www.americanjournal.org the community surrounding the organization. reasons for the emergence of marketing ethics 1the prevalence of some counter or undesirable acts in marketing activity specifically and in a way that is not consistent with the objectives and policy of the organization, as is the case in the prevalence of bribery. 3the behavior of some departments of marketing organizations or groups in them cannot be controlled and restricted through legal legislation only. 4the need for society to set ethical rules for the work of marketing organizations and to be done voluntarily. the importance of marketing at the macroeconomic level: 1job creation: as a result of the high technological progress that many countries of the world have reached and what resulted in the laying off of many manpower in the production sector, these forces have shifted to work in marketing activity as a result of the expansion and diversity of businesses. and its great dependence on the human element 2the effect on the total output in the economy: this importance is highlighted by the fact that marketing is the natural and appropriate tool in translating the production plans and programs set for the overall economy into a tangible reality. 3the contribution of marketing to the development of the overall economy: the profits generated from marketing and selling products can contribute to the development of new products or the introduction of new technology, so it became possible to see in the local markets that they have become global. 4 marketing costs: many marketing activities that are carried out towards achieving consumer satisfaction and satisfying his needs and desires results in many costs, and these costs often reach 50% of the value of the sold goods. 5 changing the lifestyle of individuals: marketing contributes to social and behavioral change in the members of society, with what it can offer of new and developed commodities that contribute greatly to changing the lifestyle of individuals. methodology: pricing on the basis of discounts and allowances: this method of pricing means on the basis of granting a specific discount to the buyer in order to motivate him to achieve purchase deals and restore his marketing activity through the value or the difference in price that he will receive as a result of completing the purchase transaction. among the most prominent types of pricing on the basis of discount are: aquantity discount: this type of price discount is based on the quantity of the purchased goods, meaning that the seller determines, in an incremental manner, the percentage of the discount on the purchase quantity. the higher the quantity, the greater the amount of discount offered by the seller to the buyer. bcash discount: it is the discount that the seller gives to the buyer for the purpose of encouraging and motivating him to pay his financial obligations resulting from his forward purchase as soon as possible. ccommercial discount: it is a specific amount in the form of a percentage of the total price shown in the sale list that is, the seller offers a percentage as a discount in the prices of the commodities in which he deals. dthe seasonal discount: this is the discount that is granted by the seller to the buyer in the event of purchase and at specific seasonal times. seasonal for products that are consumed in a following season or in a specific period of time by encouraging their purchase at times outside the season. these are a number of methods that take into account the psychology and personality of the individual and the way he deals with the prices specified for the goods, which may reflect a certain pattern of his personal characteristics and characteristics. purchasing through the declared price of the goods, where the marketing unit sets a specific price for the goods, for example 4990 dinars, which in fact does not differ from the price of 5000 dinars. to commodities that are dealt with: these are the prices that are set at a relatively high rate by some well-known companies or display shops, with the aim of creating an impression among buyers that the commodity is characterized by a high degree american journal of business management, economics and banking volume 15 august, 2023 p a g e | 76 www.americanjournal.org of quality, especially for those commodities that are characterized by pride when purchased as an important basis in the purchase. the purchase decision taken not by looking for a decrease in the price and often. this price is linked to the names of well-known commercial stores. creference prices: these are the prices that individuals used to deal with the products they represent for a long period of time as a result of the stability of their price. conclusion : therefore, the change in the price for various reasons makes the buyer in a psychologically unstable position towards taking on buying it because i got used to buying it for a previous period at that price prices of price leaders: these are the prices that are determined by the leaders in the market or the most affected and economic position in the market and are usually the companies with the largest share or share in the market as they set their prices for goods and are followed by small sellers or producers who are below them in capabilities chapter eleven marketing channels (distribution) service marketing outlets: as is the case for consumer and productive goods with distribution outlets for them, services also have distribution outlets that can be relied upon in order to deliver services to the buyer, but these outlets do not take the same form or the number for what it is in relation to consumer or productive goods. perhaps the dominant feature of the outlets for distributing services is that they are direct, that is, they are provided by service vendors, and it is difficult to give them to an intermediary person, but this does not preclude saying that some services can be granted to others to perform or deliver it to whoever requests it. references 1. andreopoulou, z., koliouska, c., and zopounidis, c. 2017. applications in various agricultural, food and environmental issues. in: multicriteria and clustering: classification techniques in agrifood and environment (33-80). cham: springer international publishing. 2. aravazhiirissappane, a., and zhang, j. 2017. filtering unfair ratings from dishonest advisors in multi-criteria e-markets: a biclustering-based approach. autonomous agents and multi-agent systems, 31(1): 36-65. 3. athwal, n., arnott, d., and bridgewater, s. 2016. network development: an exploration of a collector community. proceedings of the 2014 academy of marketing science (ams) annual conference: let’s get engaged! crossing the threshold of marketing’s engagement era (511-512). cham: springer international publishing. 4. bajaj, m., mehta, s., and banati, h. 2016. a soft computing approach for targeted product promotion on social networks. in: hybrid soft computing approaches: research and applications (271-304). new delhi: springer india. 5. carli, g., xhakollari, v., and tagliaventi, m.r. 2017. how to model the adoption and perception of precision agriculture technologies. in: precision agriculture: technology and economic perspectives (223-249). cham: springer international publishing. american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 22 www.americanjournal.org development prospects of security activity in uzbekistan kenjayev ilhom giyozovich doctor of philosophy (phd) in economics, associate professor of the department “insurance and pension” tashkent state university of economics e-mail: kenjayevi1982@mail.ru ganiyev shahriddin vokhidovich professor of isft institute e-mail: ganiyev_sh@mail.ru a b s t r a c t k e y w o r d s this article tried to research the development of insurance activity in the republic of uzbekistan during the years of independence, dividing it into stages based on certain criteria. the main focus is on the analysis of the adopted legislative documents and statistical data on the development and regulation of insurance activities. also, the article comments on the achievements and shortcomings in the reform and development of insurance activities over the past 30 years. insurance, insurance activity, insurance companies, voluntary insurance, compulsory insurance, insurance premium, insurance payments, insurance control. introduction it is known that after uzbekistan gained its independence, insurance activities in our country were carried out by the so-called "gosstrax" state insurance bodies for almost 70 years. in 1991, the implementation of large-scale reforms related to the transition from a planned economy to an economy based on market relations, the creation of a private ownership and competitive environment in society, the creation of legal conditions for the development of entrepreneurial activities, undoubtedly required a fundamental revision of insurance activities. analyzing the situation in the insurance sector in the years after the independence of our country, we can see that this sector has traveled a difficult and at the same time honorable path from its beginning. within the framework of a proper article, there is a limited opportunity to systematically study the reforms and changes, achievements and shortcomings of the insurance industry over 30 years. however, it is not without benefits to know the past and make conclusions when determining the directions of future development of insurance activity, making decisions that are important for the development of the industry. at this point, it should be noted that the stages of development of insurance activities during the years of independence were not sufficiently studied in the field of uzbek insurance. therefore, this research work is relevant from a scientific and theoretical point of view. american journal of business management, economics and banking volume 27 august 2024 p a g e | 23 www.americanjournal.org the results of the analysis of the economic literature dedicated to the research of the stages of development of insurance activity became the basis for researching the development of insurance activity in our country during the years of independence, dividing it into the following stages. the first stage covers the years 1991-1997, and this stage includes the abolition of the state monopoly in the insurance sector, the entry of privately owned insurance companies into the network, the rise of credit risk insurance, the creation of large insurance companies with the participation of state capital on the initiative of the government, the organization and implementation of insurance activities. is characterized by the formation of the legal basis of the increase. insurance rose to a new level in uzbekistan during the years of independence. the establishment of the first non-state insurance companies in 1991 was an important step in the formation of the private insurance sector. for example, on february 26, 1991, the insurance company "astrovaz" was established as a small enterprise with a charter capital of 100,000 rubles. on november 28, 1991, "ajska" started its activities and started providing insurance services to legal entities and individuals along with state insurance bodies. also, this year, the structure of the insurance companies "asko vostok" and "umid" became important in the formation of the competitive environment in the network. one of the cases in which the years of independence took a special place in the first stage of the development of insurance activity in uzbekistan was the adoption of the law "on insurance" on may 6, 1993. this law consists of 34 articles, which reflect legal norms such as the concept of insurance, insurance objects and forms, mandatory and voluntary insurance, specific features of concluding an insurance contract. the adoption of this law undoubtedly started a new era in the insurance activity of uzbekistan. on may 7, 1993, compulsory insurance of passengers was introduced on the basis of the law of the republic of uzbekistan "on compulsory personal state insurance of passengers of public air, railway, inland water and road transport". it should be noted that this type of insurance in our country was initially carried out by state insurance bodies, and later by state and state-owned insurance companies. unfortunately, in 1991-1996, coordination and regulation of the activities of insurance companies in uzbekistan was not systematically organized. this can also be seen in the fact that during these periods, the unified registration and registry of insurers was not carried out at the country level. therefore, we are limited in our research to statistical data on the activities of more public insurance bodies. despite this, some experts, including sh.baygin, noted that in 1995, the number of insurance companies in uzbekistan reached 30. continuing his opinion, he noted that there is no accurate information on the number of local insurance companies and emphasized that the state insurance control body, which coordinates the activities of insurance market participants, has not yet been established. in our opinion, in the first 6 years of the country's independence, the civil code of the republic of uzbekistan, adopted in 1996, was of great importance in the legal regulation of insurance activities. it should be noted that despite the fact that the adoption of the law "on insurance" in 1993 served to fill the existing gap in the regulation of relations between insurance companies and policyholders in a certain sense, some issues related to the conclusion of property and personal insurance contracts remained open. the civil code is distinguished by the fact that it fills this gap. american journal of business management, economics and banking volume 27 august 2024 p a g e | 24 www.americanjournal.org the second stage of the development of insurance activity includes the years 1997-2002, and it can rightfully be noted as one of the important stages in the development of insurance activity in uzbekistan during the years of independence. in these years, for the first time in our country, the classification of insurance activities was approved and the licensing of insurers was carried out. also, at this stage, decrees and decisions aimed at stimulating the development of national insurance activities were adopted. important changes characteristic of the second stage of the development of insurance activity include the fundamental reform of state insurance bodies and the establishment of large insurance companies with the participation of state capital on its basis. on the basis of the decree of the president of the republic of uzbekistan no. pf-1710 dated february 18, 1997, "uzbekinvest" national insurance company was established on april 13, 1994, the authorized capital is equal to 60.0 million us dollars. "uzbekinvest" was transformed into an export-import national insurance company. the adoption of the decree of the president of the republic of uzbekistan dated february 25, 1997 no. pf-1713 "uzagrosugurta" on the establishment of the state joint-stock insurance company undoubtedly led to the complete reform of the system of state insurance bodies in our country. in accordance with this decree, the state joint-stock insurance company "ozagrosug'urta" was established in the form of a joint-stock company, and it was considered the legal successor of the general directorate of state insurance under the ministry of finance of the republic of uzbekistan in terms of all property and non-property rights and obligations. as of the end of 2020, the "guarantee" insurance company, which is one of the 5 largest insurers in the insurance market of uzbekistan, was established on march 14, 1997 in accordance with the decision of the cabinet of ministers no. 144 and was entrusted with the task of providing insurance services to legal entities and individuals located in the cities of the republic. was one of the important events in the second stage of its development. however, the results of our research showed that despite the fact that more than 80 insurance companies operated in the country's insurance market in 1997, the provision of insurance services in the regions of the country was carried out by the district departments of the state joint-stock insurance company "uzagrosugurta", which was established on the basis of the former state insurance bodies. at the end of 1997, insurance premiums totaling 2.03 billion soums were collected by all insurance companies, of which 910.7 million soums or 44.3 percent were contributed by the state joint-stock insurance company "uzagrosugurta". it should be noted that until the first half of 1998, the absence of a competent state body for the regulation and control of insurance activity in our country caused the appearance of insurers who engaged in various frauds under the guise of an insurance company. for example, in 1996, the insurance company "bukhara" attracted a large amount of money from the population under the condition of paying a high interest rate. however, he was unable to fulfill his obligations and caused huge losses to customers. such negative situations, "still a big blow to the non-public insurance business among the population and legal entities, no doubt”. based on the above, by the decision of the cabinet of ministers of the republic of uzbekistan no. 286 of july 8, 1998 "on measures to regulate insurance activity by the state", the function of state insurance control was assigned to the ministry of finance, and the state insurance control inspectorate was established under it. in accordance with this decision, it was determined that insurance companies operating in the territory of the republic of uzbekistan must re-register with the ministry of finance within three months. american journal of business management, economics and banking volume 27 august 2024 p a g e | 25 www.americanjournal.org as a result of activities carried out in order to form a single database of insurance companies operating in our country, it was determined that there are more than 80 insurance companies operating in uzbekistan with different forms of ownership. however, in 1998, 27 insurance companies were reregistered in the ministry of finance of the republic of uzbekistan. according to the data, the authorized capital of most insurance companies in the non-state sector is very small compared to the authorized capital of insurance companies established with the participation of state capital. for example, the authorized capital of "sayyoh" insurance company was 6.2 thousand soums. however, the authorized capital of "uzbekinvest" export-import national insurance company is 589 times more than the authorized capital of "sayyoh" insurance company. how high the level of capitalization of insurers is important in insurance activity. because the level of capitalization directly affects the financial stability of the insurer. in 2002, a number of legislative documents aimed at state support of insurance activities were adopted. in order to further develop the process of liberalization in the field of insurance services and deepen economic reforms, to strengthen the economic factors of the development of the insurance market in the republic, to strengthen the material and technical base of insurance companies and to ensure their financial stability. on january 31, 2002, the adoption of the decree of the president of the republic of uzbekistan no. pf-3022 "on measures to further liberalize and develop the insurance market" was an important factor in raising the development of insurance activity to a new level. based on this decree, starting from february 1, 2002, insurance companies, regardless of ownership, were exempted from paying income tax for a period of 3 years. it was determined that the funds freed up due to the exemption from paying taxes will be directed to the development of the material and technical base of insurance companies, the establishment of wideranging agency branches in the regions, training and retraining of personnel, including training and retraining abroad. the essence of the law "on insurance" adopted in 1993 did not meet the modern requirements of reforming the insurance activity during the next 9 years. taking this into account, the law "on insurance activities" was adopted on april 5, 2002. for the first time in the law, insurance was divided into the following 2 independent branches: the general insurance branch and the life insurance branch. also, in this law, the rights and obligations of professional participants of the insurance market, the powers of the specially authorized state body, and the provision of norms such as licensing of insurance activities created an opportunity to further strengthen the legal basis of insurance activities. it should be recognized that from 1991 to the end of 2002, insurance companies in our country operated without a special license. of course, it also had negative consequences. we touched on this above. it should be noted here that in all countries of the world, insurance activities are licensed by specially authorized state bodies. in this regard, the approval of the procedure for licensing insurance activities in accordance with the decision of the cabinet of ministers of the republic of uzbekistan no. 413 "on measures to further develop the insurance services market" on november 27, 2003 can be considered as an important event. thus, in the years of independence, the second stage of the development of insurance activity in uzbekistan left a mark as a stage in which important documents were adopted regarding the deepening of reforms and improvement of legal foundations in this sector. american journal of business management, economics and banking volume 27 august 2024 p a g e | 26 www.americanjournal.org the years 2003-2009 can be recognized as the next third stage of the development of insurance activity in the country. it was during these years that the competitive environment in the field of insurance services intensified due to the increase in the number of insurers and their regional structures. in addition, the work started on economic stimulation of the development of insurance activities, improvement of the conditions for the activity of insurers, formation of the legal framework of the industry and training of bachelor personnel in the field of insurance was continued. on the basis of the decision of the president of the republic of uzbekistan dated april 10, 2007 no. pq-618 "on measures for the further reform and development of the insurance services market", the approval of the "program for the reform and development of the insurance market of the republic of uzbekistan in 2007-2010" and the professional insurance market the establishment of the association of participants has taken a special place in the development of national insurance activity. according to this program, in 2007-2010, the task was set to increase the volume of insurance services by 3 times, the insurance reserve of insurers by more than 2.5 times, and the gross capital of insurance companies by more than 2 times. the "regulation on insurance agents" approved by the order of the minister of finance of the republic of uzbekistan dated january 28, 2003 "on approval of the regulation on insurance agents" no. 19 and registered by the ministry of justice on february 1, 2003 with no.1213 is between insurance companies and insurance agents in our country. became important in regulating relations. experience shows that the role of insurance agents in finding customers and selling insurance products to them is significant. also, the "regulation on assets and liabilities of insurers" approved by the order of the minister of finance of the republic of uzbekistan dated january 19, 2004 no. 18 "on approval of the regulation on assets and liabilities of insurers" and registered by the ministry of justice on march 16, 2004 with no. 1328 by its very nature, it has gained great importance in strengthening the solvency of insurers and, on this basis, in protecting the interests of a large number of insurance consumers. on april 17, 2009, the law of the republic of uzbekistan "on compulsory civil liability insurance of the employer" was adopted. this law envisages the implementation of the second type of compulsory insurance provided for in the program of reform and development of the insurance market for 2007-2010. the main purpose of the adoption of this law is to ensure social protection of citizens who have been injured in the course of work, have an occupational disease or have suffered health damage while performing their duties. the procedure for compulsory civil liability insurance of the employer is approved in accordance with the decision no. 177 of the cabinet of ministers of the republic of uzbekistan "on measures to implement the law of the republic of uzbekistan "on compulsory civil liability insurance of the employer" adopted on june 24, 2009. which is expressed in the rules of compulsory insurance. the rules of compulsory insurance apply equally to all insurers who have a license to carry out this type of insurance. the next fifth stage of the development of insurance activity in uzbekistan includes important changes observed in the insurance sector of the economy in 2017 and beyond. paragraph 3.1 of the "strategy of actions on five priority areas of development of the republic of uzbekistan in 2017-2021" approved in accordance with appendix 1 of the decree of the president of the republic of uzbekistan no. pf-4947 dated february 7, 2017 "on the strategy of actions for further development of the republic of uzbekistan" expanding the volume of insurance, leasing and other financial services due to the introduction of new types and improvement of their quality, as well american journal of business management, economics and banking volume 27 august 2024 p a g e | 27 www.americanjournal.org as the definition of the tasks of attracting capital and developing the stock market as an alternative source for the deployment of free resources of enterprises, financial institutions and the population" implies the need to further increase the role and role of insurance in the economy in the next years. conclusions and suggestions in the years of independence, the development stages of insurance activity were systematically researched, divided into five stages based on legal documents and official statistics. the results of the research carried out within the framework of the first stage showed that despite the emergence of private insurance companies in the insurance sector, the dominant position of the state insurance bodies (gosstrax) in the market has been preserved. also, at the second stage of the development of insurance activity, based on the initiative of the government of uzbekistan, the fundamental reform of the system of state insurance bodies and the creation of the insurance companies "uzagrosugurta" and "kafolat" with the participation of state capital on its basis, and the national insurance company "uzbekinvest" as the national export-import insurance company "uzbekinvest" it should be noted separately that it was reorganized. at this stage, it was recognized that the formation of the state body for the regulation of insurance activity and the adoption of important documents aimed at state support for the development of the insurance market were of particular importance in the development of insurance activity in uzbekistan. the third stage of the development of insurance activity in our country covered the years 2003-2009, and the results of the research showed that at this stage, the competitive environment in the national insurance market and the scope of providing insurance services to customers expanded. it was from this period that insurance companies began to operate in two independent sectors, i.e. general and life insurance sector. the results of the conducted research made it possible to determine the specific characteristics of the fourth stage of the development of insurance activity. in particular, the number of insurers decreased by 8 at this stage, covering the years 2010-2016. from july 1, 2012, the strengthening of the requirement for the minimum authorized capital of insurance companies caused an increase in the level of capitalization of insurers, and consequently, an expansion of the insurance capacity of national insurance companies. references: 1. law of the republic of uzbekistan "on protection of joint-stock companies and shareholders' rights".//national database of information on legal documents of the republic of uzbekistanwww.lex.uz. 2. шеннаев х.м. страховая система узбекистана: этапы становления // журнал «рынок, деньги и кредит», №6 2004.– с.26-29. 3. икрамов о.г., шеннаев х.м. market of insurance services in uzbekistan: development trends and prospects//"finance" scientific journal, 2008. 36-48 б. 4. асанов р.к. формирование концепции “цифровой экономики” в современной науке / р.к.асанов // социально-экономические науки и гуманитарные исследования.– 2016.– № 15.– с.143–148. 5. байгин ш. если “у страха глаза велики” – покупайте страховку (рядовой клиент в массе своей редко прибегает к услугам страховых компаний – такого особенность нашего рынка). http://www.lex.uz/ american journal of business management, economics and banking volume 27 august 2024 p a g e | 28 www.americanjournal.org // газета “бизнес-вестник востока”, №23 (179) 9-15 июня 1995 г. с.5. 6. law of the republic of uzbekistan "on mandatory civil liability insurance of the employer". collection of legislative documents of the republic of uzbekistan. t.: ministry of justice, 2009, no. 16 7. "rules for compulsory civil liability insurance of the employer" approved by the decision of the cabinet of ministers of the republic of uzbekistan no. 177 of june 24, 2009 "on measures to implement the law of the republic of uzbekistan on compulsory civil liability insurance of the employer" 8. https://www.lex.uz/docs/1493389. http://www.lex.uz/docs/1493389 american journal of business management, economics and banking issn (e): 2832-8078 volume 22, | march 2024 p a g e | 167 www.americanjournal.org purpose and criteria of risk diversification in commercial banks bakhriddinov sharofiddin tashkent financial institute, doctor of philosophy in economics, department of bank accounting and auditing, tashkent, uzbekistan email: bakhriddinov5599@gmail.com orcid: 0000-0001-7899-0217 a b s t r a c t k e y w o r d s in the article, the goals and tasks of risk diversification in banks, the results achieved by banks through diversification, as well as the factors affecting diversification are studied in a wide scale. opinions of economists who conducted research on this topic were studied and interpreted. at the end of the scientific work, conclusions and proposals were formed based on the knowledge learned. commercial banks, globalization, risk, bank risks, credit risks, diversification, national economy, national currency, monetary policy, bank assets, bank liquidity, international financial institutions, interest rate. introduction in the diversification of risks in commercial banks, the main focus is on ensuring the financial stability of the bank at the micro and macro level, increasing its profit, and continuously fulfilling its obligations to customers and shareholders. at the macro level, it is to increase the solvency of the country's banking system and national currency, to strengthen the confidence of the population and customers in the banking system.risk constantly surrounds us in the society in which we live, its types and processes of emergence are very diverse. its versatility, types and wide or narrow scope of influence are directly and indirectly related to the economic, political and social processes in the society in which we live. of course, the diversification of bank risks is considered one of the important aspects in this process, and in this article, we will analyze the economic content and main principles of diversification of risks in banks. therefore, the need to diversify bank risks is one of the important issues in the context of the deepening of the market economy and the globalization of the international economy. because, in the conditions of the market economy, the relations of commercial banks with depositors, investors, borrowers, customers are constantly expanding, which in turn leads to deepening of the need for effective diversification of risks. american journal of business management, economics and banking volume 22 march 2024 p a g e | 168 www.americanjournal.org literature analysis the concept of bank risks has been studied in different ways by foreign economists. their views and conclusions on this matter differ significantly from each other. in particular, issues related to credit risks in banks were studied in the studies of v.n. ermanov, v.d. krylova, m.d. rosenberg, e.e. rumyantseva, r.g. olkhova, d.m. noton and similar scientists. the occurrence of processes and problems related to banking risks in our country does not have a long history. for this reason, processes related to bank risks have not been studied at a high level by national economists. it should be noted that bank risks are a wide-scale economic concept, which includes the risks arising in the process of organizing, implementing, profiting of banking activities and similar processes. economist e.b. according to starodubtseva, "risk is a value expression of the probability of events leading to losses. the higher the level of risk, the higher the chance of profit. risks arise as a result of differences between actual and future performance. they can be positive as well as negative. thus, it is possible to make a profit only if losses can be foreseen and taken care of.[3] the definition given by e.b. starodubtseva to the economic content of risks is wide-ranging, and the author gave a long sentence in order to reveal its essence. we also disagree with the author's statement that "risks arise as a result of differences between current and future performance." the reason is that in the context of the stability of the national economy and the national currency, risks may not appear as a difference between the results achieved in the current and future periods. foreign economists e.v. ioda, l.l. meshkova, e.n. bolotinas took a two-sided approach to the definition of bank risks. in the absolute sense, "risk determines the amount of losses in the form of measurable material things (physical) and value (monetary funds)," while in the relative sense, "risk is the risk that can affect the financial condition of a commercial bank, the total costs of its resources in operation, or the expected income (profit) the amount of losses", it was noted.[4] similarly, other economists of russia also say that "credit risk is the loss that the counterparty may suffer as a result of non-fulfillment of the obligations specified in the contract. failure of the borrower to pay the remaining interest payment after deducting the principal amount and the paid amount is evaluated as a lost loss for the creditor" and associated the risk only with the credit process.[5] the concept of bank risks was also researched by the local economist sh.abdullaeva, in which "bank risk is the loss of part of the bank's funds in the process of carrying out banking activities, or in the hope of a positive result in the absence of income, banking operations (deposit, credit, investment, currency ) is defined as transfer. at the same time, according to the opinion of the scientist, bank risks are different in terms of emergence and manifestation, and all of them are explained by the fact that the owner of the money does not return the value of the loan and the interest payments paid to him in full.[6] according to the legal dictionary published by russian economists, "credit risk is the risk of the borrower not fulfilling his long-term obligations to the creditor, i.e. the loan (loan) will not be repaid." of course, we agree with this opinion, but the second aspect of the issue, the fact that the risk is connected not only with the loan, but also with the passive operations of the bank, has been neglected.[7] american journal of business management, economics and banking volume 22 march 2024 p a g e | 169 www.americanjournal.org analysis and results if we talk about risk and its diversification in the activity of commercial banks, this issue has become one of the most important issues facing commercial banks of all countries. because, in the next 10-20 years, along with the rapid development of digital services, techniques and technologies in the state, finance and credit and other areas, the population of the earth will increase, the amount of above-ground and underground economic resources will decrease, geoeconomic differences between countries and regions and the tension of geopolitical relations are putting commercial banks on the agenda of ensuring the level of risk at a constant normal level and its effective diversification as urgent issues. in addition, the imbalance of raw materials and financial markets and socio-economic processes at the global level, as well as the deepening of the division of labor and financial-economic relations between countries, creates the need to diversify risks in commercial banks. because in the conditions of the market economy, the formation of interest rates on loans and deposits of commercial banks based on demand and supply, the tendency of the risk associated with them to change constantly, as well as the fact that the activities of local and foreign financial institutions are closely connected with each other, the financial and economic situation that occurred in one country the problem is reflected in the financial and credit sector of another country. such socio-economic processes create a strong need to generate appropriate profits by diversifying risks in commercial banks. in addition to the above, in the following years, the improvement of market relations and the deepening of economic competition in our country, as well as the acceleration of the processes of economic integration of our country's financial and economic relations with other countries and international financial organizations require diversification of risks in commercial banks. therefore, the main goal of diversifying bank risks is timely fulfillment of the bank's obligations to its shareholders and customers, as well as strengthening the financial stability of the bank, and in order to achieve this goal, commercial banks diversify the risks that arise in the process of fulfilling risky assets and liabilities. therefore, the diversification of the risks of commercial banks gives them a number of opportunities, the main ones are presented in the diagram below. figure 1. results of risk diversification of commercial banks. american journal of business management, economics and banking volume 22 march 2024 p a g e | 170 www.americanjournal.org *author development. chart 1 shows that diversification of the risks of commercial banks gives positive results, we will try to touch on some of them in more detail. reducing costs by increasing the quality of bank assets. it is known that the deterioration of the quality of assets in commercial banks leads to an increase in their costs. according to the regulation of the central bank no. 2696-3 "on the procedure for the classification of asset quality in commercial banks and the formation and use of reserves to cover potential losses on assets", the assets of commercial banks are classified into the following groups and reserves are allocated for them[1]. standard – 1%; substandard – 10%; unsatisfactory – 25%; doubtful 50%; desperate 100%. by grouping the quality of the assets according to these 5 categories, the commercial banker forms reserves to cover possible losses that may occur to them in the future. of course, these reserves are made at the expense of the bank and have a negative impact on the level of profit that the bank receives at the end of the reporting period. in addition to the above, the quality of assets (representative accounts, interbank deposits and loans) placed by commercial banks in banks in the territory of the republic is classified as follows: when the principal and (or) interest repayment period is delayed up to 10 days "unsatisfied"; when the principal debt and (or) interest repayment period is delayed from 11 to 30 days "doubtful"; when the principal debt and (or) interest repayment period is delayed by 31 days, as well as when the license of the bank where the asset is placed has been revoked or when liquidation has begun in another order "hopeless". in this, the financial indicators of the banks where the assets are placed and the implementation of the regulations established by the central bank are regularly studied [1]. as can be seen from the above, as the assets of commercial banks are classified into appropriate groups according to their quality, appropriate reserves are formed for them. deterioration of the quality of assets of commercial banks affects not only their costs, that is, the decrease in profit levels, but also causes the following conflicting situations: major investors and partners of the bank will reconsider the issue of continuing cooperation with the bank in the future; as a result of a decrease in the level of liquidity provision, problems arise related to the fulfillment of bank obligations; as a result of deterioration of the bank's financial stability, the trust of shareholders and customers will decrease; the market price of bank shares will decrease, the share of additional capital in the structure of own funds will decrease or it may not be there at all; and others. summarizing and systematizing bank risks in a single order increases the effectiveness of management. the activity of commercial banks is an extremely risky activity compared to the activity american journal of business management, economics and banking volume 22 march 2024 p a g e | 171 www.americanjournal.org of any economic entities in the real sector. because 88-90 percent of the financial resources of commercial banks are formed from the financial resources attracted from third parties on appropriate terms. of course, these resources must be returned on time and in full by commercial banks within a mutually agreed period. if, in this process, the risks are not summarized and systematized in the appropriate directions with the help of diversification, its economic and social consequences will be very bad.it is known that the bank must have liquid funds to fulfill its obligations to customers. in order for the bank to have liquid funds, it is desirable to effectively manage the relationship between liabilities and liquid funds.the results of studies show that in foreign practice, special attention is paid to the issue of diversification of risks in order to effectively organize the activities of commercial banks and achieve the intended goal. in this process, diversification of banks' risky assets and risks arising from attracting long-term funds is of great importance.it should be noted that until the 1980s, the main focus of commercial banks was the management of their risky assets, and later, the management and diversification of risks that may arise in connection with the passive operations of banks became an urgent issue. because there have been conflicting situations related to the failure of commercial banks to fulfill their obligations to customers. in particular, such cases include the transfer of large customers to other banks, the decrease in the desire of investors to invest funds, and the decrease in the market price of bank shares. the following figure presents the main tasks of commercial banks' risk diversification. figure 2. criteria for bank risk diversification. *author development. above, we have considered in detail the goal of diversifying the risks of commercial banks, of course, a number of tasks will be set to achieve this goal. the main ones are shown in the picture above. it is very important to ensure the profitability of the bank, increase the quality of risky assets and ensure the standard level of problematic loans.the need for diversification of bank risks is evident when assessing the level of influence of factors affecting bank risks. for this, we can observe that the classification of these factors is highly effective. in general, we can classify the internal and external factors affecting the diversification of bank risks as follows. the main tasks of bank risk diversification increasing income (profit) and reducing expenses on banking risky operations improving the quality of risky assets and ensuring a regulatory level for problem loans providing the bank with longterm cheap financial resources ensuring the fulfillment of the bank's obligations ensuring that the size of the bank's risky assets is proportional to its stable resources american journal of business management, economics and banking volume 22 march 2024 p a g e | 172 www.americanjournal.org figure 3. factors affecting bank risk diversification*. *author development. in recent years, in the conditions of sharp fluctuations of the world economy, the banking system of the country cannot fail to have its influence. in particular, it causes the main rate of the central bank to remain high, the share of problematic assets in commercial banks is noticeably increasing, the high volume of reserves created by banks on assets with a high probability of loss is causing their profits to decrease. interest rates of loans and deposits remain high in the national economy, one of the main reasons for this, in our opinion, is the low monetization ratio. the figure below shows the level of monetization coefficient in some countries. diagram 1. monetization coefficient in uzbekistan and some countries of the world (the ratio of broad money to the country's gdp)* 207.7 201.4 195 197.9 211.4 212 213 239.8 244.3 248.5 251.5 285.5 283 287 42.2 35.8 33.7 30.7 35.5 33.6 32.8 24.5 23.4 19.7 17.9 18.6 20.3 21.8 0 50 100 150 200 250 300 350 2016 2017 2018 2019 2020 2021 2022 uzbekistan united states of america tajikistan russian federation kazakhstan japan china factors affecting bank risk diversification external factors internal factors b an k c u st o m er s an d p ar tn er s b an k a ss et q u al it y a n d d iv er si fi ca ti o n s ta te o f c o rp o ra te g o v er n an ce in t h e b an k a n d c o rp o ra te c o m p et it iv en es s o f th e n at io n al ec o n o m y f o ll o w m ar k et p ri n ci p le s an d ru le s p ro ce ss es i n i n te rn at io n al fi n an ci al m ar k et s m o n et ar y p o li cy o f th e c en tr al b an k s o u rc es a n d d iv er si fi ca ti o n o f b an k r es o u rc es american journal of business management, economics and banking volume 22 march 2024 p a g e | 173 www.americanjournal.org *author development. it is known that the monetization coefficient indicates that the national economy is provided with money. according to experts of the world bank and international financial organizations, this indicator should be at least 50 percent of gdp in countries that are in the process of transition to a market economy. from the data of diagram 1, it can be seen that this level in our country was 24.5 percent in 2016, and it was 21.8 percent in 2022. of course, raising this level is carried out by lending to commercial banks based on the central bank's base rate, but the central bank's hard money credit policy, that is, the policy aimed at reducing inflation by maintaining the size of the money supply in the economy, does not currently provide an opportunity to raise the monetization ratio. this situation requires further improvement of risk diversification practice in commercial banks.the factor of financial processes in international financial institutions, which is part of the external factors of bank risk diversification. it should be noted that this factor is important in diversifying bank risks. the reason is that the negative changes in the international financial institutions, the decrease in the trend of stable change will not fail to affect the banking system of our country by itself. an example of this is the world financial and economic crisis observed in 2008. in such situations of economic instability, bank depositors are at risk and seek to withdraw their funds quickly and invest in precious metals, real estate and base currencies.as a result, problems with shortage of financial resources arise in banks. in addition, in order to ensure the bank's liquidity, to gain the trust of customers, they will start taking measures to withdraw the funds directed to active operations before the due date. in this regard, the instability of financial processes in the international financial markets is one of the main factors influencing the diversification of risks not only at the level of one bank, but for the entire banking system. application of market principles and rules in our opinion, this factor is important in diversifying the risks of commercial banks. the application of market principles and rules in the country allows commercial banks to organize asset and liability operations on the basis of mutual competition. this, in turn, has a positive effect on the reduction of the risk level, as the interest rates on asset and liability operations of banks are formed on the basis of mutual competition. however, the fact that a number of urgent issues remain in our country regarding this issue has a negative impact on the process of diversification of risks in commercial banks, as a result of which the share of problematic assets in the country's bank assets is high, and the amount of funds that are unstable in term and expensive in terms of their resources remains high. the following two external factors affecting the diversification of the risks of commercial banks, i.e. the competitiveness of the national economy and the monetary policy of the central bank, are important in the diversification of bank risks. their importance lies in the fact that if enterprises and organizations operating in the national economy and all other sectors are not competitive, they will not be able to sell all goods to the country's markets, in particular food markets, construction and technical markets, clothing and perfume markets, service markets, financial markets and other markets. аppliances and other consumer goods come in from abroad. the entry of goods into the consumer and service markets from abroad causes a number of negative situations. in particular, american journal of business management, economics and banking volume 22 march 2024 p a g e | 174 www.americanjournal.org foreign currencies will go abroad, jobs will not be created, money income will decrease in the form of taxes and other fees to the state budget and will lead to a number of other negative consequences. the monetary policy of the central bank indirectly affects the risk diversification of commercial banks. for example, the high rate of the central bank does not allow commercial banks to satisfy their demand for liquid funds, and the interest rates of loans and deposits increase. all this has a negative impact on the level of risk diversification of commercial banks. conclusions and suggestions in general, in the course of the globalization of the world economy, the international division of labor is deepening day by day, and mutual economic relations of financial organizations are developing. as a result, negative or positive situations occurring in the activities of partner countries and financial organizations affect the activities of financial organizations of other countries. if this is a negative situation, it will be necessary to increase the level of bank risks and make an appropriate decision regarding effective diversification of these risks by mutual partner countries. in particular, this process is evident in the processes of investment, deposit, credit and currency relations between partner countries. a change in the financial situation of foreign economic partners creates a risk that their interests will not be realized. in our view, the importance of diversification of risks of commercial banks can be more broadly defined in terms of microand macro-level aspects. however, considering that these issues will be explored in one way or another in the next sections of the article, we decided not to dwell on them in detail. it should be noted that the diversification of banking risks in the conditions of the market economy is a requirement of economic and social processes, and whether the results of diversification of risks are negative or positive is evaluated based on a number of criteria. in conclusion, banking risks and their diversification is a multifaceted process, and the effective implementation of this process has a positive effect on ensuring the financial stability of commercial banks and increasing their profit level. references 1. марказий банкнинг “тижорат банкларида активлар сифатини таснифлаш ва активлар бўйича эҳтимолий йўқотишларни қоплаш учун захиралар шакллантириш ҳамда улардан фойдаланиш тартиби тўғрисида” низом. ўзбекистон республикаси адлия вазирлиги томонидан 2021 йил 10 декабрда рўйхатдан ўтказилган, рўйхат рақами 2696-3. https://lex.uz/docs/5768182 2. беляков а.в. банковские риски: проблемы учета, управления и регулирования (2-е изд). управленческая методическая разработка. – м: «бдц-пресс», 2004 г. – 256 с. 3. райзберг б. а., лозовский л. ш., стародубцева е. б. современный экономический словарь. 5-е изд., перераб. и доп. м.: инфра-м, 2006, 494 с 4. иода е.в. классификация банковских рисков и их оптимизация / е.в. иода, л.л. мешкова, е.н. болотина. под общ. ред. проф. е.в. иода. 2-е изд., испр., перераб. – тамбов: изд-во тамб. гос. техн. ун-та, 2002. 120 с https://lex.uz/docs/5768182 american journal of business management, economics and banking volume 22 march 2024 p a g e | 175 www.americanjournal.org 5. рыхтикова н. а. анализ и управление рисками организации. 2 изд. м.: форум, 2010. 240 с 6. абдуллаева ш.з. банк рисклари ва кредитлаш. т.: молия, 2002. 304 б. 7. ерманов в.н., крылова. большой юридический словарь. –м.: “инфра-м”, 1999. –с. 325. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 1 www.americanjournal.org the spread of religious extremist ideas that negatively affect information security in uzbekistan муминов муҳаммадбобур амирқул ўғли ўзбекистон миллий университети тадқиқотчиси a b s t r a c t k e y w o r d s the article analyzes and provides information on the problems of the spread of religious extremist ideas, which have a negative impact on ensuring information security today, and the skills required to eliminate them, based on scientifically based information related to the field. globalization, extremist, information, facebook, odnoklassniki, whatsapp, viber, telegram, youtube and messenger. introduction since information has become an integral part of human life in the context of today's globalization, it is important to ensure information security in our country, in particular, to create a healthy environment for young people to use information. in particular, the president of the republic of uzbekistan sh.mirziyoev touched on the tasks associated with strengthening ideological immunity in the hearts and minds of our youth, noting: "in this regard, we rely on our national traditions, the rich spiritual heritage of our ancestors, which has been formed over the centuries."[1] after the independence of the republic of uzbekistan, mechanisms were developed to further strengthen peace and stability, ensure the development of society and protect young people from the influence of foreign ideas. laws were also adopted in the republic of uzbekistan "on combating terrorism", "on approving the national security concept of the republic of uzbekistan", "on approving the concept of foreign political activity of the republic of uzbekistan"and "on protecting children from information harmful to their health". in addition, a number of organized organizations have been established that fight against the spread of religious extremist ideas. at the same time, in the strategy of action on the five priority areas of development of the republic of uzbekistan in 2017-2021, special attention is paid to the issues of ensuring interethnic harmony and religious tolerance, security, stability and the development of a stable neighborhood environment. today, 2,238 religious organizations belonging to 16 religious denominations operate in the republic of uzbekistan. of these, 2,064 are islamic, 157 are christian, 8 are jewish, 6 are baha'i communities, one is the society for the realization of krishna and a buddhist temple. in addition to these, the american journal of business management, economics and banking volume 24 may 2024 p a g e | 2 www.americanjournal.org interdenominational bible society operates. in particular, the current population of uzbekistan is 32.5 million people.more than 130 nationalities are counted. more than 94% of citizens practice islam.[2] despite the above measures adopted in the country, it is becoming known that there are cases of dissemination of information of a destructive nature through various sites, messengers and social networks on the internet. in particular, social networks, messengers, video hosts such as facebook, odnoklassniki, whatsapp, viber, telegram, youtube have become a place of vertual communication, where destructive ideas can be promoted, and the number of materials that promote religious extremism, promote suicide is growing in them to provoke national, religious animosity. according to some reports, there are now more than 40,000 sites on the internet with religiousextremist content. in particular, isis, who had started a personal social network called caliphatebook on facebook in an effort to promote the spread of its ideas, is now attempting to form radical proideology communities on its pages. it has also been found that the social network twitter has around 50,000 accounts supporting isis ideas and activities, and that each has an average of a thousand "likeminded" and "followers". in addition, isis media centers "al-furqan" and "al-hayat" have carried out propaganda attacks mainly in arabic, english, german, french, russian, hindi, urdu, bengali, turkish, kurdish and a number of other languages. materials that are spreading over the internet are of various forms, which are becoming more common, mainly in text, audio and video views. in particular, youtube video hosting places 300 hours of videos on different topics every minute, and 2.37% of the available materials on the internet are videos promoting obscenity. according to the analysis of available data, users of the internet in uzbekistan received 20 million rubles.there are more than, of which 80% use mobile internet. the number of users of the social network facebook in the republic is more than 500 thousand, and 300 thousand of them are men, 220 thousand are women. uzbekistan ranked 3rd in the average monthly number of users of the odnoklassniki social network, with a total of 2 million.is considered more than. also, these users spend an average of 41 minutes on the social network. at the same time, the number of watching videos on this network amounted to 350 million per day.which is 2 million of this number.about to uzbekistan. in recent years, the number of websites aimed at propaganda and propaganda of the ideas of terrorist organizations has increased several times. in particular, while 10 years ago the number of such sites was 20, today there are more than 40 thousand internet sites used by terrorists, and the number of portals serving them is increasing day by day. such sites are hosting various destructive targeted sects, representatives of religious communities on the internet network with information related to the country's cross-sectional system, violence, immorality. in addition, religious extremists are delivering mercenary information to their customers in seconds through social networks such as whatsapp, telegram, messenger, viber, odnoklassniki and facebook, which mainly sought to achieve their goal, using ideas such as "takfir", "hijra", "jihad", "caliphate" and "shahid". such internet sites appear suddenly on the network and disappear after a certain period of time, often changing their name and domain without changing their content. also, the sites of this category are aimed at active members of terrorist organizations on the one hand, and at people who, on the other hand, do not know the original purpose-provisions of terrorists, are accustomed to accepting them with the qualities of "fighters", "opposition" and the like.[5] they are intended to form an appropriate american journal of business management, economics and banking volume 24 may 2024 p a g e | 3 www.americanjournal.org social thought in society and to generate internal hesitation by exerting mental influence on the opposite (enemy) side, spreading fear, panic. according to available information, members of the religious extremist and terrorist movement, such as "isis", "hizbut-tahrir", "achromyans", "tabligists" and "nurists", under the guise of religion, have been posting electronic literature and various information with distorted religious and educational content on the pages of the internet. in particular, the nurist movement is distributing its information not only through the internet, but also through 14 magazines such as "irmok", "sizinti", "yni umit" and "fontan", the daily newspaper "seven climates", "zaman", the private tv channel "samanyoli" and two radio stations. also, representatives of the" huzbut-tahrir " religious extremist current create separate vertical groups for women, to which, mainly, the spouses of the group members, close relatives and loved ones of convicts who are serving their sentences for spreading religious extremist ideas are attracted. hizbists today use social media extensively to achieve such goals, posting new-new information on their internet pages every day. similarly, religious extremist and terrorist groups are hiding their information on web conferences and pornographic pages within sports-themed content on the internet[6]. in doing so, they use special ciphers that non-specialists cannot see the information hidden behind the cipher. details or propaganda regarding the upcoming terrorist attacks are kept in sight spread throughout the internet, and terrorists who know the secret codes are getting to know them in one place. experts believe that the videos distributed by the militants are at a high level, professionally prepared and posted on the pages of the internet. basically, it is argued that those who are ready for these videos are european youth with a certain qualification. because of the opportunities on the internet, such quality videos are being used to promote the activities of militants. analysts believe that every time a new video and photos were released by militants, it is becoming more and more different in content and quality from the previous one. the militants are working accordingly, observing how the product they have prepared has affected the international community. according to the latest data, it is noted that at the next time, more than 500 uzbek nationals who were initiated into religious extremist groups through the internet in particular through the odnoklassniki network and whatsapp messenger were activated and, mainly, in this way, are currently fighting in the ranks of jihadi groups in syria and iraq. [7] in conclusion, among the materials distributed on the internet, there is a growing number of materials promoting religious extremist ideas. the fact that most of those involved in the propaganda of such ideas work from abroad makes it difficult to fight them. also, representatives of religious extremist and terrorist organization seek to increase their supporters by using social networks, messengers, instilling destructive ideas in their minds through young people, women through odnoklassniki, facebook, twitter and other similar networks. based on the above, it is advisable to carry out the following: development and strengthening of the unified information space of the republic of uzbekistan; improving the skills of using social networks, messengers among the population; timely response by organizations responsible for nonlinear information disseminated about the internal policy of uzbekistan; encouraging users by posting materials on the internet that reflect enlightened islamic ideas against religious extremist ideas. american journal of business management, economics and banking volume 24 may 2024 p a g e | 4 www.americanjournal.org references 1.mirziyoev sh.m. we will build our great future together with our brave and noble people. tashkent: uzbekistan, 2017. – 488 b. 2.current directions of the fight against religious extremism and international terrorism in our country. http://religions.uz/cyrl/news/view?id=470 3.hasanov r., utamurodov a., kyrgyzboev m., pg.inoyatov. civil society: lecture course. tashkent: "navruz", 2018. b.189. 4.hasanov r., utamurodov a., kyrgyzboev civil society / educational-methodological manual. tashkent:” center for science and technology", 2019. b.192 5.http://www.uzgbng.uz/news/uz-uz/o-zbekiston-yangiliklar/2016/12/13/diniy-ekstremizm-vaunga-qarshi-kurash-13-12-2016-160034 6.http://fikr.uz/blog/poems/dinii-ekstremizm-va-terrorizmga-arshi-kurash.html 7. http: / / mv-patriot. oz/oz/news?id=4687. american journal of business management, economics and banking issn (e): 2832-8078 volume 20, | january, 2024 p a g e | 146 www.americanjournal.org the role of investment in the development of the economy of the republic of uzbekistan ganiev shakhriddin vakhidovich professor of the institute "international school of finance technology and science" llc email: shahriddinganiyev65@gmail.com tel.: +998971569765 mamatov bahadir safaraliyevich professor of the institute "international school of finance technology and science" llc email: bahadir_mamatov@mail.ru. тел.: +99899-854-77-40 a b s t r a c t k e y w o r d s the article examines the theoretical foundations of investment and substantiates the role and necessity of investment in the development of the national economy. the main trends of investments in fixed assets by sources of financing, as well as the reproductive and technological structure of investments in fixed assets in the republic of uzbekistan in 2022 are analyzed. in conclusion, scientific conclusions were formulated and practical recommendations for the development of investment activities in the country were developed. investments, foreign investments, capital investments, financial investments, social investments, investments in fixed assets, investment project, modernization, infrastructure, innovation, efficiency. introduction investments continue to be a key factor for economic development, and their relevance is undeniable. 1. investments contribute to increased production, technological development and labor productivity, which ultimately contributes to economic growth. 2. investments contribute to the financing and development of new technologies, which helps to increase production capacity and create more efficient production processes. 3. investments contribute to the creation of new enterprises and the expansion of existing ones, which has a direct impact on the labor market and the standard of living of the population. 4. investments make it possible to modernize infrastructure, including transport, energy, healthcare and education, which contributes to creating a favorable environment for business and improves the quality of life of citizens. 5. investments play an important role in strengthening global competitiveness. the modern economy requires constant renewal and innovation in order to remain competitive on the world stage. but, it should be noted that "global foreign direct investment decreased by 12% in 2022 to $1.3 trillion" [1]. the decrease was mainly due to a decrease in financial flows and transactions in american journal of business management, economics and banking volume 20 january, 2024 p a g e | 147 www.americanjournal.org developed countries. the actual investment trends were more positive, with an increase in applications for new investment projects in most regions and sectors. "in 2022, foreign direct investment in developing countries increased by 4% to usd 916 billion, or more than 70% of global flows, which is a record share. the number of new investment projects announced in developing countries increased by 37%, and the number of international project financing transactions increased by 5%" [2]. this is a positive sign for investment prospects in industry and infrastructure. literature review the study of investments and their impact on the development of the economic system is one of the significant macroeconomic problems in economic theory. in economics, issues related to the problem of investments have received quite wide coverage. the theoretical foundations were laid in the scientific research of j.m. keynes [3], a. marshall [4], v.petty, a. smith [5], d. ricardo [6]. domestic and foreign authors devoted their scientific works to the analysis of investments and problems of effective investment management: n.blank [7], v.bocharov [8], t.kasyanenko, g.makhovikova [9], l.igonina [10], g.podshivalenko, i.lakhmetkina, v.makarova [11], v.kovalev, v.ivanov, a.lyalin [12] etc. russian scientists and economists: d.gozibekov [13], d.rustamova [14], g.karimova [15], n.karimov [16], r.karlibaeva [17], s.nasretdinov [18], sh.mustafakulov [19], sh.yuldashev [20] directly or indirectly explored this topic in their scientific works. the purpose of the state policy in the investment sphere is to ensure economic growth in the interests of all subjects of the socio-economic system. vital economic niches that are unattractive to private capital can be developed by attracting public investment. temporarily or chronically unprofitable enterprises should be financed using the mechanism of "rehabilitation" of industries. according to p.c. greenberg, corresponding member of the russian academy of sciences, director of the institute of economics of the russian academy of sciences, "the state should actively support industries that have the potential to remain competitive at the global level. the state should provide direct subsidies, benefits, and other forms of state support" [21]. at the same time, the problems of investment research in the development of the economic system need further theoretical development. thus, the existing scientific sources do not sufficiently reflect the possibilities of attracting and effectively using investments for socio-economic growth. the methodological foundations and tools of investment policy, the functional purpose of domestic and foreign (foreign) investments, their interrelationships and interdependencies remain undeveloped. further analysis of the reasons preventing an increase in investment activity in the national economy is required. research methodolog methods of grouping, comparative and economic analysis, induction and deduction, economic and statistical methods and expert assessment were widely used in the research. american journal of business management, economics and banking volume 20 january, 2024 p a g e | 148 www.americanjournal.org analysis and results investment is the process of investing funds (capital) to achieve a specific goal, such as generating income, capital growth, or ensuring future security. in accordance with the law of the republic of uzbekistan "on investments and investment activities", investments are defined as "tangible and intangible benefits and rights to them, including intellectual property rights, as well as reinvestments invested by an investor on risk-bearing terms in objects of the social sphere, entrepreneurial, scientific and other types of activities in order to obtain profits, which may include: funds, including cash (including foreign currency), target bank deposits, shares, shares, shares, bonds, promissory notes and other securities; movable and immovable property (buildings, structures, equipment, machinery and other tangible assets); intellectual property rights, including patented or non-patented (know-how) technical, technological, commercial and other knowledge in the form of technical documentation, skills and production experience necessary for the organization of a particular type of production, as well as other values not prohibited by the legislation of the republic of uzbekistan" [22]. investments are investments in various types of assets in order to make a profit in the future. the key aspects of the essence of investments are as follows: 1. temporal aspect: investments involve the movement of resources from the present to the future in order to achieve economic benefits. thus, they have a temporal aspect, as resources are spent in the present in order to benefit in the future. 2. expected return: investing in investments involves the expectation of receiving a certain monetary benefit in the future in the form of income, interest, dividends or capital gains. 3. risk: investments are always associated with a certain level of risk. as a rule, the higher the expected return, the higher the risk of losing funds. 4. long-term nature: investments are usually focused on the long term. they are aimed at creating a stable income stream in the future or at increasing capital over a long period of time. 5. choosing alternatives: making an investment decision involves choosing between alternative investment opportunities and determining the most profitable one. there are several key theories that help explain the essence of investments, such as rational expectation theory, portfolio management theory, and cash flow theory: rational expectation theory – in accordance with this theory, investors make their decisions based on a rational assessment of the expected return and risk of an investment; portfolio management theory – this theory considers the investment selection process as drawing up an optimal investment portfolio that maximizes profitability at a certain level of risk; cash flow theory – approaches an investment decision from the point of view of evaluation cash flows that will be generated by the investment in the future. thus, investments are a fundamental concept in economics, and understanding them is a key element for making financial decisions. they transfer resources into the future in order to achieve income and capital growth, and their essence and theoretical aspects help us better understand their role in the economy. to conduct investment activities, both at the macro and micro levels, it is necessary to have a detailed understanding of the existing types and types of investments. investments by destination are divided into capital, financial and social (fig. no. 1). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 149 www.americanjournal.org figure no. 1. types of investments by destination [23] in the context of the development of the national economy, they act as an important incentive for growth and prosperity: 1. stimulating economic growth: investments contribute to increased production, technological progress and the creation of new jobs. they can have an impact on key indicators such as gdp, employment and economic development. 2. infrastructure development: investments can be directed to the development of the transport network, energy, education, healthcare and other areas, which contributes to improving the efficiency and competitiveness of the economy. 3. attracting foreign capital: if there is a favorable investment environment and sustainable economic growth, the country can become attractive to foreign investors, which contributes to the expansion of capital flows. 4. creation of new jobs: investments stimulate the creation of new enterprises, the expansion of existing ones and, consequently, the growth of employment. 5. increased innovation activity: investments can be directed into innovative projects, contributing to support the development of new technologies and the improvement of existing production processes. many countries are actively using investments to stimulate their economies. a classic example is china, which, thanks to an active investment climate, has managed to achieve impressive economic growth rates. investment social investments financial investments capital investments investments invested in the creation and reproduction of fixed assets, including new construction, modernization, reconstruction, technical reequipment, as well as in the development of other forms of material production investments in stocks, corporate, infrastructure and government bonds, as well as other types of securities investments in the development of human potential, skills and work experience, as well as in the development of other forms of intangible benefits american journal of business management, economics and banking volume 20 january, 2024 p a g e | 150 www.americanjournal.org attracting foreign investment is one of the most important mechanisms for stimulating economic growth and development. the role of investment, including foreign investment, in the development of the national economy is as follows: 1. project financing and infrastructure development: foreign investments provide additional financial resources for the implementation of major projects, such as the construction of infrastructure, energy facilities, or the development of production facilities. 2. technological transfer and innovation: foreign companies can contribute technological knowledge, best practices and innovative working methods, which contributes to improving production processes and increasing the competitiveness of the national economy. 3. creating new jobs: foreign investments contribute to business development and the creation of new jobs, which in turn helps to reduce unemployment and increase household incomes. 4. development of international relations and economic network: the inflow of foreign investments contributes to the strengthening of international relations and the creation of new partnerships, which additionally contributes to the development of the economy. 5. improving competitiveness and foreign trade balance: foreign investments contribute to the growth of production and export opportunities, which in turn contributes to improving the foreign trade balance and strengthening the country's position in the world market. in the republic of uzbekistan, 269.9 trillion rubles were disbursed in 2022. the sum of investments in fixed assets and, compared with 2021, it amounted to 100.9%. 59.1%, or 159.6 trillion. the sum of investments in fixed assets was financed by borrowed funds, 40.9%, or 110.3 trillion. sum – at the expense of own funds of enterprises, organizations and the population. also, their volume, mastered at the expense of centralized sources of financing, amounted to 41.5 trillion. sum, the remaining 228.4 trillion. the sums were mastered at the expense of non-centralized sources of financing (fig. 2). in order to conduct statistical analysis, investments in fixed assets are formed in the following main sections: by type of investment; technological, reproductive structure; types of economic activity; sources of financing. in 2022, 84.5 trillion rubles were spent at the expense of enterprises and organizations' own funds. the sum of investments in fixed assets, or 31.3% of their total volume. at the expense of the population, 25.8 trillion of them were mastered. sum, or 9.5%. 37.0 trillion has been disbursed through foreign direct investment. sums, which, compared with the corresponding period of 2021, is 1.2 percentage points more, or 13.7% of their total volume. at the same time, 21.1 trillion rubles were disbursed due to bank loans and other borrowed funds. sum (from the total volume of investments in fixed assets of 7.8% and this indicator, compared with the corresponding period of 2021, decreased by 0.2 percentage points). american journal of business management, economics and banking volume 20 january, 2024 p a g e | 151 www.americanjournal.org fig. no. 2. investments in fixed assets by sources of financing in 2022 in the republic of uzbekistan [24] foreign loans guaranteed by the republic of uzbekistan amounted to 15.2 trillion. sums (5.6% decreased by 2.0 percentage points), non–guaranteed and other foreign investments and loans 60.0 trillion. sum (22.3 %). reconstruction and development fund – 2.5 trillion. sums (0.9% decreased by 0.3 percentage points), the republican budget – 20.9 trillion. sums (7.8% decreased by 1.4 percentage points), the fund for the development of water supply and sewerage systems – 2.9 trillion. sums (1.1% decreased by 0.1 percentage points) of their total volume. in the technological structure of investments in fixed assets in the republic of uzbekistan, 120.2 trillion was allocated for the purchase of machinery, equipment and inventory. sums, which amounted to 44.5% of their total volume, investments in construction and installation work reached 131.0 trillion. sum (share in the total volume of 48.6%), for other expenses – 18.7 trillion. sum (6.9%) (fig. 3). the highest share of construction and installation works in the total volume of investments in fixed assets was observed in surkhandarya region 66.7%, or 7.7 trillion soums. the lowest level of this indicator was recorded in the syrdarya region – 22.7%, or 2.9 trillion soums. in the same area, the highest share of costs for the purchase of machinery, equipment and inventory was recorded – 75.8%, or 9.5 trillion soums. statistical accounting of investments in fixed assets is carried out in the amount of the actually mastered volume, regardless of the moment of its payment, in the actual prices of the reporting period, including value added tax. 2.9 2.5 15.2 84.5 25.8 37 21.1 60 92 73.5 74.9 110.6 103.2 110.7 98.7 100.7 0 20 40 60 80 100 120 fund for the development of water supply and sewerage systems reconstruction and development fund foreign loans guaranteed by the republic of uzbekistan. funds of enterprises public funds foreign direct investment commercial bank loans and other borrowed funds. non-guaranteed and other foreign investments and loans growth rates, % volume, trillion sums american journal of business management, economics and banking volume 20 january, 2024 p a g e | 152 www.americanjournal.org fig. no. 3. reproductive and technological structure of investments in fixed assets in the republic of uzbekistan in 2022 [25] investments in fixed assets financed by foreign direct investment amounted to 37.0 trillion. sum and, compared to the same period in 2021, 110.7%. investments in fixed assets financed by foreign loans under the guarantee of the republic of uzbekistan amounted to 15.2 trillion. sum and, compared to the same period in 2021, 74.9%. investments in fixed assets financed by non-guaranteed foreign loans and other investments amounted to 60.0 trillion. sum and, compared to the same period in 2021, 100.7%. conclusion investments are the most important source of financing for the development of the national economy. they contribute to the growth of production, increase the country's competitiveness in the world market and create a favorable economic environment for residents. investments play a significant role in the functioning and development of the economy, and changes in the physical volume and quantitative ratios of investments have an impact on the volume of social production and employment, structural shifts in the economy, the development of industries and sectors of the economy. foreign investments play an important role in the development of the national economy, as they contribute to strengthening the financial base, developing technological capabilities and expanding international partnerships. attracting foreign investment is a key tool for stimulating economic growth and development. for the development of uzbekistan's economy and the promotion of private foreign direct investment, uzbekistan's cooperation with leading international financial organizations, primarily the international monetary fund, the international bank for reconstruction and development, the european bank for reconstruction and development and others, is important. within the framework of the main directions of development of investment relations in the conditions of transformation of the economic system, the main ways to improve the management of investment 16.3 26.7 57.0 6.9 44.5 48.6 0.0 10.0 20.0 30.0 40.0 50.0 60.0 other directions expansion, reconstruction, modernization new construction other work machinery, equipment, inventory construction and installation works reproduction structure of investments in fixed assets, % of total technological structure of investments in fixed assets, % of total american journal of business management, economics and banking volume 20 january, 2024 p a g e | 153 www.americanjournal.org projects include: the need for diagnosis and forecasting the development of the investment process, the importance of using expert assessments in solving complex analytical problems, the need to use stabilization measures in the implementation of investment projects. the basis for overcoming the investment deficit in uzbekistan is to ensure the active role of the state in the development of investment relations, primarily related to the lack of formation of market relations. based on international experience in attracting investments, while increasing the investment attractiveness of uzbekistan, it is advisable to pay special attention to the following areas: in order to widely inform foreign investors about the economic and investment potential of the country, about the created conditions for doing business and organizing international investment forums, further reducing the minimum share of foreign investments in the authorized capital of joint ventures; strengthening uzbekistan's position in international ratings and indexes, etc.). references 1. wir2023_key_messages_and_executive_summary_ru.pdf (unctad.org). 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reprint. and additional – m.: "knorus", 2006. 200 p. 12. kovalev v.v., ivanov v.v., lyalin v.a., investments: textbook. m.: llc "tk welby", 2003. 440 p. 13. gozibekov d.g'. problems of financing investments: a dissertation written to obtain the degree of doctor of economic sciences. – tashkent., 2002. – 330 p. 14. rustamova d.d. the economics of erkinlashtiria has studied the conditions requiring investment on the basis of theory and sustainable development. i.f.n. scientific research institute named after ezilgan dissertation abstracts. tashkent, 2006. 23 p. 15. karimova g.a. national economic development is an investment aimed at improving financial mechanisms. doctor of philosophy doctor of philosophy science in the life of a scientist as well as his dissertation abstracts. tashkent.: 2019. 28 p. https://unctad.org/system/files/official-document/wir2023_key_messages_and_executive_summary_ru.pdf https://unctad.org/system/files/official-document/wir2023_key_messages_and_executive_summary_ru.pdf american journal of business management, economics and banking volume 20 january, 2024 p a g e | 154 www.americanjournal.org 16. karimov n.g. foreign investments in the economy of the republic of uzbekistan and their financial support. tashkent, 1998– 138 p. 17. karlibaeva r.h. investments related to the organization of these activities and financing: uzakuv kulanma. tashkent:" lumber " 2011. 124 p. 18. nasretdinov s.s. national economy modernization investments foidalanishning nazarlari and samaradorligin oshirish julari. i.f.n. scientific research institute named after ezilgan dissertation abstracts. tashkent: 2002. 24 p. 19. mustafakulov g.i. uzbekistan invests in the environment, which is engaged in the reconciliation of science and technology, on the basis of its improvement. i.f.d. scientific research institute named after ezilgan dissertation abstracts. tashkent.: 2017. 68 b. 20. yuldashev g.d. foreign investment in uzbekistan the national republic has repeatedly argued that the economy of uzbekistan is a qualitative factor. fenglari economics phd in science as a jesilgan dissertation abstracts. tashkent: 2002. 32 p. 21. greenberg p.c. where to go from success? // native newspaper. 2006. november 15th. № 44(180). 22. zru-598-sleep on 12/25/2019. about investments and investment activities (lex.uz). 23. zru-598-sleep on 12/25/2019. about investments and investment activities (lex.uz). 24. investpressreliz250123ru.pdf 25. investments in fixed assets (january-december 2022) (stat.uz). file:///c:/users/91982/desktop/pc/a%20journal%20new/user/downloads/investpressreliz250123ru.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 47 www.americanjournal.org ozone layer or ozone shield yuldasheva f. u. rakhmatillayeva g. a. zhuraqulov m. z. tashkent medical academy a b s t r a c t k e y w o r d s this article addresses questions about the problem of ozone layer depletion. we will look at questions such as what is the ozone layer. how it is formed. its destruction. the causes of exhaustion and how the process of exhaustion itself occurs. consequences of ozone layer destruction. how to avoid this destruction of the ozone layer. and also international efforts to solve the problem of ozone holes. ozone layer; hydrochlorofluorocarbon; chlorofluorocarbon; ozone shield; chapman cycle; stratosphere; ultraviolet rays; ultraviolet radiation; non-melanoma skin cancer. introduction the ozone layer, or ozone shield, is the region of earth's stratosphere that absorbs most of the sun's ultraviolet radiation. this area contains a high concentration of ozone (o₃) compared to other parts of the atmosphere. the ozone layer is primarily found in the lower stratosphere, approximately 10 to 35 kilometers above earth, although its thickness varies seasonally and geographically. the ozone layer formed in the earth's atmosphere 1.85-0.85 billion years ago, when enough oxygen accumulated in it due to photosynthesis. the ozone layer is formed as a result of the conversion of atmospheric oxygen (o₂) into ozone (o₃), this process is called the “chapman cycle”. oxygen is photolyzed by ultraviolet rays to form an oxygen radical. the oxygen radical then reacts with molecular oxygen and forms an ozone molecule. thus, ozone is constantly created and destroyed through the "chapman cycle", which is a natural process. the decrease in ozone concentration and thinning of the ozone layer is called ozone depletion. its destruction is one of the most serious environmental problems facing the earth. this is also the main reason that leads to global warming. since the 1970s, ozone layer depletion has attracted the attention of scientists, environmentalists, and the global community at large. it is noted that in the area of the south pole the ozone layer is destroyed by approximately 40-50%. this significant reduction is called the "ozone hole." the ozone hole over antarctica has reached a size three times the size of brazil. this follows from data from the copernicus remote sensing program. satellite measurements taken on september 16 showed that the area of ozone depletion had reached 26 million square kilometers. american journal of business management, economics and banking volume 24 may 2024 p a g e | 48 www.americanjournal.org the main factors that lead to the destruction of ozone gas in the ozone layer are: 1. low temperatures 2. increased chlorine levels 3. increased levels of bromine gas in the upper stratosphere 4. but one of the most important reasons for the destruction of the ozone layer is the production and emission of chlorofluorocarbons, hydrochlorofluorocarbons, halogens, etc. this accounts for almost 80% of the total destruction of the ozone layer because it contains or produces a chlorine (cl) atom. all of these ozone-depleting substances remain stable in the lower atmosphere, but when they reach the stratosphere, they are exposed to ultraviolet rays. this causes them to break down and release free chlorine atoms, which react with ozone gas. the destruction process itself occurs under the influence of solar radiation, i.e. ultraviolet rays, chlorofluorocarbons, hydrochlorofluorocarbons, they break down and form cl atoms, which react with the ozone molecule and form chlorine monoxide (clo). clo reacts with oxygen free radicals to form a chlorine atom and molecular oxygen. because the cl atom acts as a catalyst, one cl atom can destroy 100,000 ozone molecules. ultraviolet rays falling directly from the sun onto the earth consist of ultraviolet a and b rays, which affect all organisms on earth and lead to bad consequences. affects plants. ultraviolet radiation affects the physiology and development of plants. sometimes small spots may appear on plants, which are also caused by ultraviolet rays. ultraviolet rays also affect plant growth. these changes may have important consequences for the competitive equilibrium of plants, herbivores, plant diseases, and biogeochemical cycles. next comes the impact on the marine ecosystem. phytoplankton, which form the basis of aquatic food webs, are exposed to ultraviolet radiation, making it impossible for such aquatic organisms to survive. ultraviolet rays have been found to harm fish, crabs and other marine animals in the early stages of development. but the most serious consequence is a decrease in reproductive capacity. most importantly, there is a negative impact on human health. depletion of the ozone layer increases the amount of ultraviolet radiation reaching the earth's surface. laboratory studies have shown that ultraviolet radiation causes non-melanoma skin cancer and plays an important role in the development of malignant melanoma. nonmelanoma skin cancer is a common type of cancer that starts in the top layer of the skin. the main types are basal cell carcinoma and squamous cell carcinoma. non-melanoma skin cancer is often easy to treat. ultraviolet radiation is also associated with the development of cataracts clouding of the lens of the eye. some types of skin cancer are also caused by these harmful ultraviolet rays. ultraviolet radiation affects materials. synthetic polymers and natural biopolymers are adversely affected by ultraviolet radiation and are destroyed. but today the materials are protected to some extent by special additives. if the amount of ultraviolet radiation increases, their destruction will accelerate. ultraviolet radiation has a major impact on the climate. due to increased exposure to ultraviolet rays, acid rain occurs. the snow is melting. but in general, there is complete global warming. research suggests that the phased withdrawal of almost 99% of banned ozone-depleting substances has ensured the preservation of the ozone layer and, as a result, reduced human exposure to harmful ultraviolet rays. if current policies continue, the ozone layer is expected to recover to 1980 levels (the approximate date of the ozone hole) by about 2066 over the antarctic, by 2045 over the arctic, and by 2040 over the rest of the world. fluctuations in the size of the antarctic ozone hole, american journal of business management, economics and banking volume 24 may 2024 p a g e | 49 www.americanjournal.org especially between 2019 and 2021, were mainly due to meteorological events. however, since 2000, the antarctic ozone hole has been slowly improving in terms of area and depth. “it is truly fantastic news that the ozone layer is on track to recover, according to the latest quadrennial report,” said meg seki, executive secretary of the united nations environment programme's ozone secretariat. – the impact of the montreal protocol on mitigating the effects of climate change cannot be overestimated. over the past 35 years, the protocol has become a true protector of the environment. the scientific assessment panel's assessments and reviews remain a vital component of the protocol's work, helping to inform policy and decision makers.” the montreal protocol is a global agreement to protect the earth's ozone layer by phasing out the chemicals that destroy it. it came into force in 1989 and is one of the most successful global environmental agreements. thanks to the joint efforts of governments around the world, the ozone layer is on the path to recovery. in addition, other environmental and economic advances have been achieved thanks to the protocol. the panel's tenth addition is scientifically assessed to confirm the positive impact the treaty has already had on the global climate. the 2016 supplementary agreement, known as the kigali amendment to the montreal protocol, requires a phase-out of the production and consumption of certain hydrofluorocarbons. these substances do not directly destroy ozone, but are powerful gases that contribute to climate change. scientists believe that this amendment will avoid warming of 0.3-0.5 °c by 2100 (not taking into account the contribution of emissions in 2023). “action to protect the ozone layer sets a precedent for further action to combat climate change. our success in phasing out ozone-depleting chemicals shows what can and must be done urgently to phase out the use of fossil fuels, reduce greenhouse gas emissions and limit rising temperatures,” says world meteorological organization secretary-general professor petteri taalas. september 16 is international day for the preservation of the ozone layer. the motto of the international ozone layer day was: “save the sky: protect yourself protect the ozone layer.” a un panel of experts has reported that the earth's ozone layer will recover by the 2060s. conclusion ozone in the stratosphere absorbs some of the sun's biologically harmful ultraviolet radiation, which helps protect living organisms on the earth's surface. to avoid depletion of the ozone layer, you should limit the movement of personal vehicles to reduce emissions of harmful substances into the atmosphere, and use public transport to reduce environmental pollution and global warming. environmentally friendly household or other cleaning products should be used. you should also avoid excessive use of pesticides. it is necessary to replace cfcs with other materials that are less harmful. the production and use of chemicals that destroy the ozone layer must be stopped. it is important to plant and grow more trees. excessive use of air conditioners should be prevented. these actions will further have a beneficial effect on preserving the ozone layer. references 1. юлдашева ф.у. socio-hygienic study of the health of children born with high weight. international scientific journal isj &applied scince philadelphia, usa issue 11 volume 67 published november 30, 2018.. 2. юлдашева ф.у. & каримбаев, ш.д.совершенствование объективности оценки качества знаний студентов. 2014. american journal of business management, economics and banking volume 24 may 2024 p a g e | 50 www.americanjournal.org 3. юлдашева ф.у., & тошматова, г.а. оказание медико-социальной помощи населению. журнал современная наука актуальные вопросы социально экономического развития. 2023;153-164. (in russ.). 4. шеркузиева, г. ф., саломова, ф. и., юлдашева, ф. у. токсичность “еp мaлхaми” при ингаляционном хроническом воздействии.материалы iv международной научнопрактической конференции «современное состояние фармацевтической отрасли: проблемы и перспективы. ташкент.2023; 287. 5. sherkuzieva, g. f., salomova, f. i. yuldasheva, f. u. oziq ovqat qo’shimchalari va aholisalo matligi.2023. «o‘zbekistonda vinochilik va sanoat uzumchiligi sohasining muammolari va ularning innovatsion yechimlari» respublika ilmiy-texnikaviy konferensiya ilmiy ishlar to ‘plami.2023;101-102 6. шеркузиева г.ф., саломова, ф.и., юлдашева ф.у. результаты санитарнохимических исследований воды. международный научно-образовательный электронный журнал «образование и наука в xxi веке». 2023;35(2). 7. юлдашева ф.у. факторы риска развития злокачественных новообразований у детей. сборник научных трудов республиканской научно-практической конференции “профилактическая медицина: гигиеническая наука и практика”ташкент.2015; 87-89. 8. юлдашева ф.у., impact of cov.id-19 on education system in the world and in uzbekistan. in образование: прошлое, настоящее и будущее. 2020; 94-95). 9. юлдашева ф.у. organization of work universities during the covid 19 pandemic. international conference, san francisco, california, usa. 2020; 10. юлдашева, ф. у., & имамова, а. о. роль спорта в формировании здорового образа жизни у молодежи. европейский международный журнал междисциплинарных исследований и управленческих исследований.2022; 2(11): 85-89. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 74 www.americanjournal.org the role and advantages of the digital economy in improving internal audit in economic entities sharifa elmurodovna maxmudova tashkent state university of economics ph.d. candidate email: sharifamaxmudova177@gmail.com phone: +998-97-408-52-75 a b s t r a c t k e y w o r d s this article highlights the significance and benefits of the digital economy in improving internal audit processes within economic entities. it examines the potential of digital technologies to automate internal audit processes, minimize errors, and ensure accurate and timely analysis of financial information. additionally, the integration of modern tools such as big data, cloud technologies, blockchain, and artificial intelligence into internal audit is analyzed, focusing on their ability to enhance transparency, identify risks in advance, and monitor operations effectively. this study demonstrates the role of the digital economy in internal auditing and its positive impact on ensuring the financial stability of organizations. digital economy, internal audit, economic entities, efficiency, big data, cloud technologies, blockchain, artificial intelligence, risk management, transparency, automation, financial stability, analytical technologies, financial management, traceability. introduction the implementation of digital technologies today is not only a driver of economic growth but also a key factor in enhancing the efficiency of internal control and audit systems. in uzbekistan, several presidential decrees and resolutions adopted to develop the digital economy provide a strong legal foundation for the digital transformation of internal audit. for example, presidential decree no. pf-6079 (october 28, 2019), which approved the digital uzbekistan – 2030 program, aims to develop all sectors of the digital economy in the country. this program expands opportunities for implementing digital technologies in enterprises and organizations, including the use of automated and intelligent systems in audit processes. additionally, resolution no. pq-4699 (april 28, 2020) outlines measures to develop the digital economy and e-commerce. this resolution directly impacts internal audit systems by enabling the use of modern technological infrastructure and supporting digital startups to introduce new tools in audit practices. these legal documents contribute to the following improvements in internal audit processes: • automation: transitioning from manual operations to automated systems in auditing. • enhanced risk management: utilizing big data and artificial intelligence technologies for risk assessment. american journal of business management, economics and banking volume 30 november 2024 p a g e | 75 www.americanjournal.org • electronic document flow: facilitating the exchange of documents and ensuring their legal validity through digital tools. as a result, government decrees and resolutions on the digital economy not only improve the transparency of economic activities but also elevate the role and potential of internal audits to a new level. the efficiency of internal audits in economic entities is a critical factor in ensuring the financial stability of organizations. however, the rapid development of modern digital technologies and the formation of the digital economy necessitate fundamental changes in this field. the digital economy not only enables the automation and acceleration of internal audit processes but also helps reduce errors, increase the transparency of financial operations, and improve risk detection, ultimately enhancing the overall efficiency of organizations. this study examines the importance and benefits of the digital economy in improving internal audit processes in economic entities. it also analyzes the opportunities provided by artificial intelligence, big data, blockchain, and cloud technologies in internal auditing and their impact on the financial condition of entities. the development of the digital economy creates significant opportunities to enhance the efficiency of internal audit processes within economic entities. as a result, it enables automation of auditing, reduces errors, and ensures the accuracy and timeliness of financial information. key advantages of the digital economy in conducting internal audits: 1. speed and efficiency: digital technologies accelerate internal audit processes, allowing automatic analysis of financial data and saving auditors significant time. 2. error reduction: digital tools minimize human errors. automated systems process data with a single entry, reducing the likelihood of mistakes. 3. transparency and traceability: systems based on electronic documentation and databases make it easier to track and monitor financial data. auditors can analyze all financial operations in real-time and identify potential risks in advance. 4. risk management: digital technologies enhance the ability to identify and manage risks in internal audits. by analyzing large datasets, systematic and unconventional risk factors can be detected, enabling the implementation of appropriate measures. 5. decision support: analytical software and artificial intelligence tools provide detailed financial data analysis, allowing managers to make accurate and timely decisions. in the context of the digital economy, the main directions for improving internal audit processes are as follows: 1. utilizing big data technologies: analyzing large volumes of data helps make internal auditing more effective. this raises the question: what exactly is big data? it encompasses methods and tools used for collecting, storing, processing, and analyzing large volumes of data. these tools include: o hadoop: an open-source platform widely used for storing and processing large volumes of data. the core components of hadoop are hdfs (hadoop distributed file system) and mapreduce, which allow large-scale data to be processed in parallel. o spark: a platform used for high-speed data processing, enabling real-time analysis of large volumes of data. the main advantages of spark are its speed and ability to work with diverse data types. american journal of business management, economics and banking volume 30 november 2024 p a g e | 76 www.americanjournal.org o nosql databases: databases such as mongodb, cassandra, and hbase are designed to work with unstructured data, unlike traditional sql (structured query language) databases. they are efficient for handling large datasets and performing various analytical tasks. o data lake: a storage repository designed to hold structured and unstructured data in large quantities. it allows for storing data for later analysis and processing, giving the ability to store data in its full size and conduct in-depth analysis in the future. o data analytics tools: programming languages such as r and python, along with visualization tools like tableau and power bi, are widely used for analyzing big data. these tools make it possible to interpret large datasets through intuitive and engaging graphics. internal audit processes often require analyzing large volumes of data. traditional methods are often inefficient for handling such data due to its size, complexity, and speed. big data technologies address these issues, making internal audits more efficient, faster, and reliable. how big data helps in internal audit processes: 1. analyzing large volumes of data: in internal audits, transactions, financial reports, contracts, and other data are analyzed. with big data technologies, millions of records can be processed in an instant, enabling auditors to draw significant conclusions quickly and effectively. 2. detecting irregular activities: big data allows quick identification of inconsistencies or unusual patterns in data. for example, it can help detect fraudulent financial transactions or suspicious activities. 3. real-time monitoring: in traditional audits, issues are only analyzed after the fact, once data is collected. big data, however, enables real-time tracking of data, allowing auditors to identify potential risks ahead of time. 4. improving the accuracy of analysis: big data technologies help combine diverse data from various sources and draw accurate conclusions. this enhances the reliability and integrity of the audit process. 5. automating processes: big data algorithms and artificial intelligence automate many timeconsuming audit tasks, allowing auditors to focus on more critical analytical work. benefits of big data technologies in internal auditing: • speed and efficiency: what would take days or weeks in traditional analysis can be completed in a matter of hours using big data. • proactive risk detection: instead of identifying potential issues during the audit process, big data enables the detection of risks before they occur. • flexibility: cloud technologies and big data systems provide auditors with access to data from anywhere. • resource savings: the need for additional human resources or equipment for audits is significantly reduced. practical examples: 1. financial audits: banks use big data to analyze millions of transactions conducted daily. the ability to detect suspicious transactions in real time improves risk management. american journal of business management, economics and banking volume 30 november 2024 p a g e | 77 www.americanjournal.org 2. improving internal control efficiency: with big data, the efficiency of internal control systems within companies is continuously monitored, identifying weaknesses and improving them. 3. fraud prevention: big data algorithms help detect hidden patterns of illegal activity within data, aiding in the prevention of fraud. conclusion using big data technologies in internal audits is taking audit processes to a new level. these technologies allow auditors to quickly analyze large, complex datasets, identify risks, and improve efficiency. as a result, internal audits become not just about detecting errors, but also strategic tools that enhance organizational stability. 2. using cloud services: cloud services allow auditors to work remotely by storing data on cloud platforms. internal auditing often requires analyzing large volumes of data and accessing that data securely and conveniently. cloud services offer the following benefits: • ease of data storage and sharing: cloud services enable auditors to access data from any location and device, facilitating remote work or collaboration across multiple teams. • resource savings: using cloud services reduces the need for traditional servers, helping companies save on it infrastructure costs. • security and data protection: modern cloud services use encryption and other advanced technologies to ensure data security. for internal audits, this is crucial to maintain data confidentiality and integrity. • real-time analysis: cloud technologies allow auditors to analyze data in real-time and draw conclusions immediately. this helps identify errors more quickly and take timely actions. advantages of using cloud services: • quick adaptability and scalability: cloud services can quickly scale up or down to meet business needs, helping businesses manage workloads efficiently. • cost reduction: instead of purchasing full infrastructure, businesses or users only pay for the resources they use. • reliable and secure storage: cloud services usually offer high levels of security and reliable storage, as data can be stored across multiple servers. • automatic updates and maintenance: cloud providers automatically update software and provide technical maintenance, minimizing service interruptions. cloud services provide a convenient platform to enhance the efficiency of internal audit processes by centralizing, securely storing, and analyzing data. cloud technologies help save time and resources while enabling the automation of audit processes. however, it’s essential to implement specific protocols and policies in cloud environments to ensure data security. the use of cloud services ensures that internal auditing is organized on the basis of new technologies, significantly increasing its efficiency and accuracy. american journal of business management, economics and banking volume 30 november 2024 p a g e | 78 www.americanjournal.org 3. blockchain technologies: blockchain technologies can improve the transparency of financial operations and ensure the immutability of data. blockchain is a decentralized, secure, and immutable data chain technology that ensures continuous recording of transactions and other data. blockchain operates without centralized servers and allows data to be stored securely and reliably, as it is validated through multiple nodes (networks). key features of blockchain technologies: a) decentralization: there is no central control in the blockchain network. all participants have equal rights and contribute to confirming transactions. this makes the network more secure against central attacks and breaches. b) immutability: once data is entered into the blockchain, it cannot be altered or deleted. every transaction or record is permanently stored in a block, preventing any changes or reversals. c) transparency and traceability: each transaction is recorded in an open network and can be viewed by all participants. therefore, blockchain enhances transparency and prevents fraud or falsification in the system. d) security: blockchain transactions are protected by cryptographic algorithms (methods for encoding data to keep it confidential and secure). each block is coded with a unique cryptographic hash, linking it to the next block and helping store the data securely within the network. 4. artificial intelligence and machine learning: these technologies are useful for identifying problems in advance and suggesting automated solutions. the application of blockchain technology in internal audit processes creates new approaches to ensure the integrity and transparency of financial and operational data. this decentralized system stores an immutable digital record of each transaction and operation, significantly simplifying and enhancing audit processes. key advantages of blockchain include: • automated verification: eliminates the need for manual checks of financial transactions and operations. transactions are automatically verified in real time through the blockchain system. • prevention of errors: human error, data manipulation, and subjective decision-making are almost entirely eliminated. • increased efficiency: blockchain technology reduces the time and resources spent by internal auditors, allowing them to focus more on strategic tasks. a new professional field emerging from blockchain technology is that of the blockchain auditor. this role includes: • analyzing transactions in the blockchain system and assessing their relevance to business activities. • verifying the security and efficiency of new digital platforms built on blockchain. • auditing smart contracts to detect fraud risks. in this way, blockchain technology advances audit processes from traditional approaches to innovative, digital management systems. this shift not only improves the efficiency of internal audits but also creates new professional paths, which is strategically important in a digital economy. artificial intelligence (ai) is the process of giving computers or software human-like intelligence. american journal of business management, economics and banking volume 30 november 2024 p a g e | 79 www.americanjournal.org machine learning (ml), a subset of ai, involves systems and algorithms that independently learn from large amounts of data to improve decision-making. in internal audits, ai plays a significant role in speeding up processes, improving efficiency, and identifying errors. internal audit processes often require examining and analyzing large datasets, and ai technologies provide valuable assistance in this area. figure 2. main directions in improving internal audit processes in the digital economy overall, the digital economy greatly helps optimize and enhance the security of internal audit processes, ultimately contributing to the financial stability of entities. the rapid development of the digital economy brings internal audit systems to a new level in business entities, offering extensive opportunities to improve their effectiveness. with modern technologies, audit processes are not only carried out quickly and accurately but also help detect risks early, reduce errors, and ensure operational transparency. innovative tools like cloud services, big data analytics, and blockchain enhance the reliability of internal audits, making them remote and continuously monitored. thus, the digital economy not only improves internal audit as a control system but also elevates it as a strategic element of financial management within organizations. ultimately, this plays a crucial role in ensuring the financial stability and overall efficiency of organizations. references: 1. "regulation on internal audit services in enterprises" (decree pq-475, dated september 27, 2006); 2. m. sh. mamatkulov, a. m. babadjanov, a. k. ahmedov (2021). internal audit – t.: "iqtisodmoliya" 208 pages; 3. krishkin o. (2017). manual for internal audit: risks and business processes – m.: "alpina publisher" – 477 pages. 4. brynjolfsson, e., & mcafee, a. (2014). the second machine age: work, progress, and prosperity in a time of brilliant technologies – new york: w. w. norton & company – 416 pages. 5. tapscott, d. (2016). blockchain revolution: how the technology behind bitcoin and other cryptocurrencies is changing the world – new york: penguin publishing group – 352 pages. 6. schwab, k. (2016). the fourth industrial revolution – geneva: world economic forum – 192 pages. 7. chui, m., manyika, j., & miremadi, m. (2017). the digital economy: the changing global economy and the role of technology – san francisco: mckinsey global institute – 130 pages. american journal of business management, economics and banking issn (e): 2832-8078 volume 15, | august, 2023 p a g e | 82 www.americanjournal.org the impact of financial learning on international portfolios-an applied study for a number of economies hebat allah mustafa1, hayder m. kareem alduhaidahawi 2, mustafa s. abdulreza 3 1assist. prof dr. hebat allah mustafa1 college of administration and economics university of warith al-anbiyaa, karbala, iraq, hebatallah.mu@g.uowa.edu.iq (corresponding author). 2lecturer dr. hayder m. kareem alduhaidahawi, doctoral of financial management, department of finance and banking sciences, faculty of imam al-kadhum college (ikc), iraq, hayder.mo@alkadhum-col.edu.iq . 3assprof mustafa s. abdulreza al-furat al-awsat technical university/technical institute of al musaib, iraq, mustafasalam55@yahoo.com a b s t r a c t k e y w o r d s this study aims to highlight the role and importance of financial education and its impact on international portfolios for a number of economies and its role among financial portfolios, as the ability of individuals determined through the use of basic financial and economic concepts , which play an important role in achieving an appropriate level of financial well being. learning financial in education knowledge and skills and behaviors necessary to adopt management practices money in order to gain profits and savings and borrow and investment , as the study conducted a detailed analysis of the economies’ portfolios during the period (2005-2020 ) and in light of the data obtained for the study sample represented in the portfolios of foreign and local stocks and the market values of those portfolios as well as several other determinants, and the study sample consisted of ( 64 ) a foreign portfolio , and using many financial and statistical methods, the study reached many conclusions and recommendations, the most important of which are : it is noted that there is a disparity among emerging economies that tend to benefit more from the improvement in the level of financial education compared to their developed counterparts, in addition to the fact that the positive impact of financial education was more evident during the recent financial crisis, especially for economies with less developed financial markets. the study concluded in the most important recommendation: it should enhancing the level of efficiency of investors and encouraging them to diversify their investment portfolios in terms of foreign investments, as it will help raise the level of financial education and reduce the country's bias towards local equities in order financial education; country bias; stock markets. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 83 www.americanjournal.org to take advantage of external opportunities to achieve the best trade-off between efficiency for return and risk. introduction study methodology: the study problem: financial education as important in influencing financial decision-making ( cole et al. , 2012 ). it is the intellectual dialectic of the study in the main question whether the impact of financial learning on international portfolios during the study period, as the study problem can be formulated in the following question: how does financial education affect the degree of country bias ? is there a disparity in financial education among economies? second : the importance of the study: the importance of the study is gained from the novelty of its subject , because it provided a cognitive and intellectual addition to one of the most important modern investment concepts , which is linking the concept of financial learning to the degree of country bias. the study sheds light on the need for researchers and decision makers to search for the causes that contributed to the low degree of financial education and its consequences on international investment. the importance of the study was complementary to the picture in knowing whether the degree of market integration affected the country's bias, which is reflected in financial education. third : study hypotheses: the study is based on a main hypothesis as the following: does not affect t financial education on country bias score. t does not vary financial education among developed and emerging economies. fourth: study objectives: the aim of this study is to find out whether financial education affected by economies by country bias score . this study aims to explore the weighting degree of financial education in developed economies versus emerging market economies . aims to try to know the role of financial education in international portfolios and to show the fact that financial education affects financial awareness, knowledge, skills and investor behavior to make sound financial decisions in order to achieve individual financial well-being. this study aims to find out is that low the level of education and financial awareness is one of the main reasons behind the increasing reliance on local stock portfolios. fifth: the study population and sample: scientific studies confirm the need to conduct the study with an accurate description of the original community in preparation for determining the sampling criteria, which includes choosing the study sample represented by this community. the community of this study includes the portfolios of the countries of the world, while the sample of the study consisted of ( 64 ) investment portfolios represented among different economies . and that the selection of these portfolios came to reflect the countries’ markets, represented by the optimal risky american journal of business management, economics and banking volume 15 august, 2023 p a g e | 84 www.americanjournal.org portfolio, as the study sample was intentionally chosen, by relying on several criteria, which are as follows: 1the selected portfolios were weighed at the market value. 2the selected portfolios are the most active during the period studied. 3the non-stop work of these portfolios in their global markets during the period studied. sixth: study data and duration: the study period covered from the year ( 2005 ) to the year (2020). as the number of observations of the international portfolios of foreign direct investment reached ( 960 ) , while the rest of the independent variables were (4800). watch for each of the market values of the selected countries portfolios. the data was obtained by using several methods to search for it, the first of which was to enter the websites directly , and the second was to subscribe to the official global websites ( data bank .world , international finance , imf , datastream ) . seventh: study procedures and methods: the procedures and methods of the study were according to the following steps: 1calculating the share of country i shares invested in the country ( i * j) the market capitalization ratio of the country ( j ) in its global market capitalization , through the use of the following equatio ( cooper & vanpée , 2013, 290 ): i*j = 𝑀𝐶𝑗 / 𝑀𝐶𝑤𝑜𝑟𝑙𝑑 (1) so mcj is the market value of the country , j mcworld global market capitalization. 2by using the above equation, the degree of country bias was calculated in which the portfolios are weighting the local shares in the first country investment portfolio compared to the foreign shares, through equation (2) wakalaty ( 2017:28, zamit ): (2) 𝐸𝐻𝐵𝑖 =1− 𝐹𝑜𝑟𝑒𝑖𝑔𝑛 𝐸𝑞𝑢𝑖𝑡𝑦𝑖 / 𝐹𝑜𝑟𝑒𝑖𝑔𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 𝑡𝑜 𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑟𝑘𝑒𝑡 3 using financial and statistical programs to calculate the relationship between variables . theoretical side: financial learning , international portfolios, and country bias one of the well-known phenomena in international capital markets is the extent to which investors focus on investing b stock portfolios in the local markets. it is evident from this that investors are reluctant to reap the full benefits of international diversification and overinvest in their domestic assets rather than in international portfolios. this preference is commonly called the " country bias puzzle " and has attracted a great deal of attention in attempts to solve this puzzle. following the seminal work of french and poterba (1991 ), several authors have documented a number of plausible explanations that focus primarily on institutional factors or individual investor behavior (see lewis , 1999 ; karolyi and stulz , 2003 and sercu and vanpée , 2012 ). ). however, what has not been researched is the role of financial education in international portfolio diversification. this evidence is important for understanding the mechanism through which education affects international portfolio holdings and can be used to better inform policymakers and investors, particularly in the current economic climate. witnessed tremendous growth in financial instruments and products, as evidenced by the multiplicity of new assets that were developed on the basis of high-risk mortgages and other mortgages before the global financial crisis of 2007-2009, as it posed a major challenge to the ability of investors to make american journal of business management, economics and banking volume 15 august, 2023 p a g e | 85 www.americanjournal.org financial decisions. intact in light of the increasing losses observed during this period ( klapper et al. 2013 ). the increase of these innovations and the risks associated with them has generated an urgent need for a decline in the level of literacy, that is, for better education and financial development, among citizens, educators, community groups, companies, policy makers, and government agencies to ensure their financial security ( lusardi , 2008 ; lusardi and tufano , 2009 and gerardi et al. 2010 ) . financial education has an important role in diversifying financial products and services, and that is by educating individuals about the various available financial products and services, which enables them to make informed decisions about choosing the appropriate financial products and services for them. by understanding the risks associated with investing in various financial products and services nicolaescu& toderașcu, 2023:325-326) . well-informed and educated people who are more financially aware may be able to better manage their financial affairs by making good and profitable decisions for their financial and economic security and thus achieve well-being. ( mizen et al. 2012 ). increase the level of financial education contribute to a better diversification of financial products and services. diversification is affected by the level of financial knowledge . the higher the level of financial knowledge, the faster the achievement of these goals will increase (meyer & rose, 2001:3) . financial literacy as a person's ability on take decisions finance correct , budget preparation _ and management funds in a form more efficient , and manageable debts credit , and appraisal risks and returns related in different options investment and saving , as well as owning broader understanding for ethical dimensions social economic ( sayed ali, 115-115, 2022). this means that financial literacy includes possess knowledge and understanding in money and asset management, banking, investments and loans, insurance and taxes . , as well as understanding and awareness of the basic concepts underlying money and asset management such as time value of money, risk management and insurance. , as well as using the knowledge to make financial decisions and plan for the future. education plays an important role in developing financial markets and diversifying financial products and services. helps individuals understand the basic concepts of finance and investments, manage their financial resources effectively, and make informed decisions about financial products and services ( annamaria lusardi & olivia s. mitchell , 2014 ). financial education is important for individuals to manage their finances effectively and make wise decisions about financial products and services. it helps individuals understand basic financial concepts, such as budgeting, saving, investing, and debt management. with this knowledge, individuals can make correct decisions about their financial resources, such as choosing the right investment products and managing their debt effectively and efficiently , in addition, financial education can also help individuals avoid fraud and deception financial ( oecd, 2016;6 ) . in the same vein , financial education has many benefits, both for individuals and for society as a whole. for individuals, financial education can help them achieve their financial goals, such as saving for retirement. it can also help individuals make informed decisions about financial products and services, such as credit cards, loans, and insurance policies. financial education also has benefits for society as a whole . it can help reduce poverty and inequality by enabling individuals to make informed decisions about resources finance. it can also help reduce financial instability by promoting responsible investment and lending practices ( nicolăescu & toderașcu, 2023 ) . the decision-making process does not depend on personal factors or on financial models, but also on situational factors. situational factors do not extend to the problem that the decision-maker faces, but extend to his environment as well. therefore, the decision-maker needs an analysis of the variables of american journal of business management, economics and banking volume 15 august, 2023 p a g e | 86 www.americanjournal.org the problem from all sides (chandra, 2008) . :8) . financial decisions are usually between the available and specific financial resources that the individual possesses in exchange for existing financial options and services. therefore, individuals have to be prepared to invest time and other resources to apply their knowledge, practice their skills, and their ability to access information and take advice and advice and trust enough to practice their skills and obtain the desired results ( remund , 2010 ). as one of the direct factors that judge the attitudes of individuals is thinking in the short term versus the long term, as well as spending instead of saving. since the level financial education does not mean how much financial information an individual possesses, but rather the effectiveness of making fundamental financial decisions ( kempson and a. finney (2009) ) . oecd ) defines financial education as the process by which financial consumers/investors improve their understanding of financial concepts, products and risks, through objective information, instruction and/or advice, they develop their skills to be more aware of financial risks and opportunities, in order to make optimal choices , and to know where to go if they need help , take other effective actions to improve their financial well-being. ( international labor organization 2016:1 ) . has an important role to play in the development of financial markets as it helps individuals to understand the performance of financial markets and the various financial products and services available. through this knowledge, individuals are able to make the right decisions about investing in financial markets and choosing the appropriate financial products and services for them ( oecd, 2017;1 ) . financial education also helps individuals understand the risks associated with investing in the financial markets. this knowledge helps individuals make informed decisions about investing in financial markets and choosing appropriate investment products ( nicolăescu & toderașcu, 2023 ) . financial education contributes to the development of financial markets in several ways, the most important of which are : increase participation financial education helps individuals understand financial products and services, enabling them to make sound decisions about investing and saving. this, in turn, can increase participation in financial markets, leading to their growth and development. financial education can increase participation in financial markets by providing individuals with the knowledge and skills to understand financial products and services. this leads to an increase in investment and savings, and this leads to the growth and development of financial markets. better investor protection financial education can also help individuals understand the risks associated with financial investments, resulting in better investor protection. this can increase investor confidence in the financial markets and attract more investments . improving financial culture by improving financial knowledge, financial education helps individuals make better financial decisions , which can lead to improved financial outcomes. all of this will contribute to the growth and development of financial markets. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 87 www.americanjournal.org increasing innovations financial education can also enhance innovation in financial markets by encouraging individuals to think creatively about financial products and services. this leads to the development of new and innovative financial products and services that meet the needs of consumers. improve market efficiency financial education can it improves the efficiency of the markets by providing individuals with the necessary knowledge and skills to analyze the financial markets and make sound investment decisions . lead to more efficient allocation of capital and better market performance ( milesi-ferretti and tille 2011 ) . increased financial stability financial education can contribute to increasing financial stability by helping individuals understand the importance of diversification and risk management in their financial portfolios. this can help mitigate the impact of financial shocks and reduce the likelihood of financial crises ( kang and stulz , 1997,8 ). enhance consumer protection. financial education enhances consumer protection by enabling individuals to make informed decisions about financial products and services. this can help prevent consumer abuse and reduce the likelihood of financial fraud and scams ( shapiro , 2014:509 ) . . financial education can improve consumer protection in multiple ways. by understanding their rights and responsibilities as consumers of financial products and services, individuals can make informed decisions and protect themselves from potential fraud and abuse. furthermore, financial education can equip individuals with the knowledge and skills to identify and report financial misconduct (2001:660 huberman ), thus contributing to the overall transparency and accountability of financial markets. in addition, financial education can promote responsible borrowing and lending behavior, which reduces the risk of overindebtedness and financial distress among consumers. finally, financial education can raise awareness of the importance of financial planning and risk management, helping individuals prepare for unexpected events and protect themselves and their families from financial shocks. improve economic development financial education can contribute to overall economic development by increasing financial inclusion and fostering entrepreneurship. by providing individuals with the knowledge and skills to start and grow a business, financial education helps create jobs and drive economic growth. in addition , financial education plays an important role in the economic development of a country by increasing the level of financial knowledge of the population, and can improve the ability to plan financially and make decisions regarding expenditures and savings. which it leads to better money management and greater financial stability, whether for individuals or institutions. financial literacy can help people better understand the benefits and risks of different financial products and make informed decisions about investments or savings. this can lead to an increase in the demand for financial products and services, as well as their diversification. american journal of business management, economics and banking volume 15 august, 2023 p a g e | 88 www.americanjournal.org financial education aims to enable workers to make wiser financial decisions at the family or business level , as it enhances behavior among the various target groups, such as youth, women, owners of small projects, immigrants, and wage workers, towards improving planning . budget, increasing savings, spending, and optimal borrowing ( international labor organization 2016:1 ) . the improvement of the financial position of the individual is determined by allocating funds to invest in different categories of sectors and securities that do not move in the same direction. as it is possible to invest in well-diversified diversified assets by choosing the assets that are less closely related ( islam & faisal, 2011:8 ) . if the investor allocates his money in local assets, he will be exposed to risks , which may have a general effect on the country's economy. in ramtah ( 4168 , 2010, mansourfar , et al. ). the tendency of local assets to move in one direction with the movement of the general market led to an increase in the strength of the correlation between returns , which weakened the local diversification. which led to the search for displacement for international diversification , because the correlation coefficients between countries are much less than among the local stocks within the same country . (298: blackman, et al, 1994 ). this is due to the economic, political, institutional, and psychological factors that affect the returns of securities, and they tend to vary greatly between different countries, which results in relatively low correlations between international securities ( eun , et al, 2012:299 ) . . and when the investor loses as a result of investing in the shares of one country , he may make a profit from investing in the shares of other countries, which enables him to compensate for the losses . thus, he spreads the risk , by investing in the shares of different countries , with a focus on the correlation coefficient in relation to among stocks, which results in a significant reduction of risk ( 89 , 1974 : solnik ). among the advantages of the globalization of investments is the improvement in the efficiency of the global allocation of capital, as well as the enhancement of the ability to diversify investment portfolios . capital fled sufficient for its implementation ( lessard, 1973: 620 ) , and in contrast, the implementation of investments with low returns in other countries due to the availability of capital necessary for its implementation, so diversification reaps the fruits of this imbalance (17-18: 2013, chaudhary & goel , ). growth, integration, lifting restrictions on global financial markets, and changes in international politics and economic policies have led to an increase in global investment opportunities ( addae & trecia , 2001 , 2 ). many international studies she emphasized that it is possible to reap more profits through international diversification, but that international investors' preferences are still biased in favor of their local investments within their countries ( abid etal, 2014:46 ). this preference confirms the presence of a country bias , which is the subject of controversy and disagreement until now ( coval & moskowitz , 1999, 2045 ). the impact of this bias will be the reason for the contradiction between theory and practical application in investment . recent studies have shown that the globalization of markets has not resulted in major and sudden changes in the structure of the link between the securities in the global markets ( 2591 , bekaert et.al. 2009 ). it is known that the goal of international diversification should focus on reducing the risk of the investment portfolio, which consists of various securities listed in foreign markets ( halicki & uphaus, 2015: 422-423 ). and because the investor is characterized by rationality and rationality, he can make the most of international investments in light of the facilities provided , and from them reducing barriers and restrictions on foreign investment, capital movement, increasing market transparency, and reducing foreign investment costs, as investors must increase their orientation towards investing in foreign stocks. but they did not. this is because most investors , all over the world, have a new behavioral bias , which is known as the country bias ( home bias ) (al-sayed ali et al . , 2022, 6). american journal of business management, economics and banking volume 15 august, 2023 p a g e | 89 www.americanjournal.org as it is seen as a practical puzzle, the proposed solutions to this puzzle were mostly the result of strict barriers that could impede international investment operations, as well as due to behavioral biases ( gilovich, etal, 2002: 20 ). the behavioral approach to country bias is based on several psychological aspects of the behavior of individuals. although the benefits of international investment are well documented, many stock portfolios are still heavily anchored in local markets ( cooper & vanpée , 2013,236 ). country bias ( home bias ) refers to the common tendency of investors to allocate the lowest weights to foreign stocks in their risky portfolios ( eun & resnick, 2012:390 ) . the measure of bias is defined as the most used indicator and is calculated by the difference between foreign assets divided by the global stock portfolio ( 1994:41 kaplanis & cooper ). the value of the bias index ranges between the correct one and zero, when the country bias scale is equal to the correct one, this indicates a complete bias of local stocks against foreign stocks. in the event that the country bias measure is equal to zero, this indicates that there is no bias for local stocks compared to foreign stocks. (sayed ali et al., 5, 2022). in addition, the above linkage should be most effective during extreme economic events such as the recent financial crisis, which originated in the united states in mid-2007, as it caused a sharp decline in asset prices . this , in turn, led to a further decline in the assets invested abroad, and thus led to an increase in the percentage of stock portfolios that are concentrated in the local market for investors. ( et al, 2021 , malekpour ). the current economic conditions mean that there are real concerns about the economic security of people, particularly those who lack the skills and resources to deal with the disadvantages and benefit from the advantages of financial markets. researcher w.n revealed that people do not possess the required levels of financial knowledge to make good decisions. for example, deciding whether to plan for retirement is one of the most important financial decisions people make financially people's decisions are getting more complex, and problems with decision-making in these areas are increasing ( mandel & klein , 2007 ). people's financial problems in recent years show that they make financial decisions without having the right tools at hand ( consumer federation of america , 1991 ). one difficulty with making poor financial decisions is that their consequences are hidden in the short term and only revealed over longer periods of time. the researchers suggest that poor financial decisions will become an epidemic problem; therefore, policy makers are faced with a new problem: the poor financial decisions made by individual investors ( danes & hira , 1987 ). the applied side: the impact of financial learning on international portfolios, an applied study of a number of economies based on the study data described in the study methodology and using equation ( 1 ) and (2) , bias rates were calculated annual (for each portfolio in its own currency) and given that the american portfolio is the local portfolio for the study in addition, averages were calculated for those portfolios during the study period the results are shown in the following table to show the impact of financial learning on international portfolios : american journal of business management, economics and banking volume 15 august, 2023 p a g e | 90 www.americanjournal.org table ( 2 ): average and annual rates of bias for the governors of the study sample countries from 2005 to 2020 countries 𝐸𝐻𝐵𝑖2005 𝐸𝐻𝐵𝑖2006 𝐸𝐻𝐵𝑖2007 𝐸𝐻𝐵𝑖2008 𝐸𝐻𝐵𝑖2009 𝐸𝐻𝐵𝑖2010 𝐸𝐻𝐵𝑖2011 𝐸𝐻𝐵𝑖2012 argentina 0.999313 0.999372 0.99938 0.999372 0.999422 0.999474 0.999449 0.999482 netherlands 0.999983 0.999984 0.999986 0.999986 0.999986 0.999984 0.999985 0.999985 australia 0.991643 0.990844 0.989013 0.990593 0.988266 0.986645 0.985475 0.984966 austria 0.988003 0.988427 0.988774 0.988239 0.989307 0.990156 0.990752 0.991379 belgium 0.976748 0.977782 0.976996 0.973375 0.976763 0.979744 0.980625 0.982556 bermuda 0.983445 0.985266 0.984074 0.985478 0.985916 0.984658 0.986565 0.988649 brazil 0.999731 0.999652 0.99949 0.999501 0.99948 0.998952 0.999169 0.999429 bulgaria 0.999967 0.999959 0.999957 0.999942 0.999923 0.999905 0.999901 0.999846 canada 0.980149 0.979261 0.978601 0.982444 0.981662 0.979298 0.97824 0.976661 cayman islands 0.996948 0.997205 0.997501 0.998165 0.998315 0.998346 0.998508 0.99865 chile 0.998939 0.998151 0.997684 0.997874 0.9973 0.996753 0.996958 0.996772 china hong kong 0.981568 0.980935 0.978387 0.979572 0.975763 0.974122 0.975901 0.974505 china macao 0.99965 0.999659 0.99965 0.999623 0.999565 0.999563 0.999385 0.999152 colombia 0.999762 0.999704 0.999681 0.99959 0.99963 0.99961 0.999551 0.999571 costa rica 0.999966 0.999957 0.999959 0.999965 0.999955 0.999962 0.999966 0.999974 cyprus 0.999422 0.999112 0.999259 0.998548 0.998143 0.998616 0.998903 0.999097 czech rep. 0.999197 0.999163 0.99905 0.999043 0.999258 0.999327 0.99934 0.999335 denmark 0.991695 0.991728 0.991636 0.991442 0.991141 0.990963 0.990915 0.990481 egypt, arab . of 0.999909 0.99992 0.999923 0.999929 0.999877 0.999731 0.999902 0.999914 estonia, rep. of 0.999875 0.999842 0.999822 0.99986 0.99985 0.999851 0.999842 0.999841 finland 0.993491 0.992906 0.99289 0.993375 0.99282 0.99211 0.992127 0.991825 france 0.920917 0.919084 0.917694 0.906382 0.914023 0.921886 0.930939 0.933628 germany 0.934445 0.925573 0.927137 0.921202 0.925096 0.928845 0.930533 0.92872 gibraltar 0.999942 0.999963 0.999954 0.999919 0.999908 0.999936 0.999931 0.999784 greece 0.997046 0.997094 0.996451 0.995499 0.996125 0.997327 0.997586 0.996178 guernsey 0.994207 0.993966 0.993333 0.993757 0.994234 0.993717 0.993745 0.99473 hungary 0.999894 0.999803 0.999726 0.999691 0.999648 0.999654 0.999768 0.999794 iceland 0.999531 0.999388 0.999142 0.999719 0.999792 0.999802 0.999781 0.999782 india 0.999997 0.999991 0.999969 0.999965 0.999959 0.999956 0.999965 0.999967 indonesia 0.999951 0.99995 0.999928 0.999842 0.999875 0.99981 0.999766 0.999652 ireland 0.950091 0.946792 0.945301 0.935482 0.941801 0.945748 0.945918 0.945931 italy 0.95854 0.962542 0.965518 0.964926 0.966653 0.967853 0.969922 0.972997 japan 0.910716 0.923041 0.929948 0.912863 0.915 0.906846 0.901498 0.908961 jersey 0.987032 0.988253 0.988762 0.989929 0.992749 0.992902 0.993597 0.994551 kazakhstan, rep. 0.999537 0.99934 0.999311 0.998844 0.99916 0.999054 0.998627 0.998376 korea, rep. of 0.997799 0.996789 0.995597 0.997246 0.996979 0.996875 0.996981 0.996444 kuwait 0.999355 0.99924 0.999108 0.998529 0.998893 0.998968 0.99898 0.999106 latvia 1 0.999933 0.999922 0.999895 0.99991 0.99991 0.99989 0.999872 lebanon 0.999914 0.999921 0.999891 0.999837 0.999843 0.999825 0.999785 0.999825 luxembourg 0.922282 0.920169 0.919981 0.92119 0.919324 0.920052 0.921562 0.92067 malaysia 0.99984 0.999764 0.999641 0.999408 0.999192 0.999001 0.998824 0.998694 malta 0.999499 0.99951 0.999563 0.99948 0.999465 0.99942 0.999352 0.999317 mauritius 0.997685 0.997322 0.995707 0.995194 0.996126 0.995073 0.996966 0.997383 mexico 0.999632 0.998582 0.99845 0.998164 0.998935 0.998871 0.998949 0.998915 netherlands, the 0.950968 0.956227 0.95649 0.954828 0.955046 0.958456 0.957995 0.956892 new zealand 0.998825 0.999028 0.999012 0.999044 0.998869 0.998669 0.998593 0.998541 norway 0.988152 0.985726 0.984886 0.980812 0.980584 0.97965 0.978359 0.976836 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 91 www.americanjournal.org pakistan 0.999984 0.999992 0.999985 0.999996 0.999996 0.999995 0.999994 0.99999 panama 0.99978 0.999809 0.999852 0.999815 0.99982 0.999804 0.999773 0.999777 philippines 0.999754 0.999765 0.999819 0.999831 0.99985 0.99984 0.99984 0.999825 poland, rep. of 0.99963 0.999546 0.999394 0.999606 0.999627 0.999605 0.999688 0.999658 portugal 0.994312 0.994735 0.994709 0.993534 0.993707 0.994576 0.995687 0.996312 romania 0.999969 0.999945 0.999953 0.999945 0.999949 0.999941 0.999939 0.99993 russian 0.99925 0.999597 0.999448 0.999113 0.998862 0.998962 0.99871 0.998753 saudi arabia 1 1 1 1 1 1 1 0.995523 singapore 0.988046 0.987592 0.985877 0.986448 0.986103 0.983603 0.982179 0.979289 slovak rep. 0.999855 0.99986 0.999833 0.99981 0.999223 0.999196 0.999123 0.999296 slovenia, rep. of 1 1 1 1 0.999511 0.999555 0.999562 0.999596 south africa 0.997269 0.99768 0.997885 0.997629 0.997116 0.996349 0.996045 0.995874 spain 0.975466 0.978107 0.979383 0.978506 0.981135 0.986445 0.988279 0.989193 sweden 0.987326 0.987043 0.986644 0.988162 0.987271 0.986277 0.987177 0.987379 switzerland 0.968615 0.970563 0.969953 0.966647 0.967865 0.968886 0.968357 0.969437 thailand 0.999855 0.999841 0.999577 0.999506 0.9993 0.999367 0.999393 0.999244 turkey 0.99997 0.999897 0.999944 0.999928 0.999943 0.999938 0.999949 0.999966 ukraine 0.999998 0.999998 0.999997 0.999999 0.999999 0.999998 0.999998 0.999997 united kingdom 0.89978 0.896867 0.905801 0.911043 0.909328 0.909761 0.906333 0.908276 united states 0.806177 0.803869 0.800361 0.843521 0.822201 0.812401 0.801095 0.795527 countries 𝐸𝐻𝐵𝑖2013 𝐸𝐻𝐵𝑖2014 𝐸𝐻𝐵𝑖2015 𝐸𝐻𝐵𝑖2016 𝐸𝐻𝐵𝑖2017 𝐸𝐻𝐵𝑖2018 𝐸𝐻𝐵𝑖2019 𝐸𝐻𝐵𝑖2020 𝐸𝐻𝐵 averg argentina 0.999428 0.99945 0.999458 0.999458 0.999488 0.999439 0.999392 0.999471 0.999428 netherlands 0.999986 0.999986 0.999985 0.999984 0.999984 0.999983 0.999982 0.999982 0.999984 australia 0.992216 0.992398 0.992531 0.992131 0.985483 0.992378 0.991868 0.99168 0.989883 austria 0.991273 0.991793 0.992774 0.992845 0.993262 0.993463 0.993597 0.993551 0.9911 belgium 0.982446 0.98308 0.985035 0.984007 0.984484 0.985111 0.985686 0.985356 0.981237 bermuda 0.99436 0.994019 0.994161 0.99375 0.994023 0.99404 0.993632 0.993118 0.989697 brazil 0.999373 0.999256 0.999258 0.9993 0.999309 0.9992 0.999182 0.999288 0.999348 bulgaria 0.999836 0.99984 0.999875 0.999862 0.999838 0.999828 0.999814 0.999783 0.99988 canada 0.974403 0.972972 0.972118 0.970861 0.869522 0.968416 0.966654 0.966614 0.968617 cayman islands 0.998803 0.999021 0.979845 0.960042 0.963995 0.958583 0.959011 0.954306 0.984828 chile 0.996704 0.996659 0.996699 0.996551 0.996709 0.996715 0.996784 0.9969 0.997135 china kong 0.973224 0.973281 0.969759 0.969689 0.968993 0.968184 0.968444 0.966989 0.973707 china macao 0.998889 0.998818 0.998731 0.998688 0.998525 0.998374 0.998108 0.997981 0.999023 colombia 0.999697 0.99939 0.99933 0.99933 0.999306 0.99927 0.999275 0.99928 0.999499 costa rica 0.999974 0.999971 0.99997 0.999966 0.999967 0.99995 0.999949 0.999941 0.999962 cyprus 0.999562 0.999635 0.999701 0.999668 0.999605 0.999581 0.999515 0.999546 0.999245 czech rep. 0.999358 0.999348 0.999331 0.999329 0.99933 0.99937 0.999413 0.999435 0.999289 denmark 0.990125 0.990266 0.99075 0.990498 0.990811 0.990587 0.99034 0.989899 0.99083 egypt, rep. of 0.999962 0.999969 0.99996 0.99997 0.999968 0.999977 0.999983 0.999982 0.99993 estonia, rep. of 0.999828 0.999818 0.999837 0.999786 0.999743 0.999721 0.999724 0.999643 0.999805 finland 0.991673 0.991696 0.99247 0.992259 0.992919 0.992891 0.993186 0.993458 0.992631 france 0.930592 0.932802 0.940086 0.941021 0.94408 0.94586 0.948556 0.949985 0.931096 germany 0.92536 0.926233 0.932383 0.930699 0.934563 0.935025 0.935198 0.934506 0.92972 gibraltar 0.999945 0.999905 0.999986 0.999917 0.999939 0.999855 0.999954 0.999964 0.999925 greece 0.996317 0.996582 0.997113 0.99701 0.997459 0.997707 0.997609 0.99701 0.996882 guernsey 0.9973 0.997693 0.997327 0.997881 0.998127 0.99798 0.998005 0.997682 0.995855 hungary 0.999807 0.999782 0.999786 0.999768 0.999738 0.999749 0.999753 0.999764 0.999758 iceland 0.999748 0.999747 0.999796 0.99982 0.999802 0.999781 0.999758 0.999743 0.999696 india 0.999979 0.999962 0.999965 0.999952 0.999944 0.999917 0.99992 0.999878 0.999955 indonesia 0.999632 0.999682 0.9997 0.9997 0.99969 0.999599 0.999615 0.999636 0.999752 american journal of business management, economics and banking volume 15 august, 2023 p a g e | 92 www.americanjournal.org ireland 0.943201 0.943409 0.944351 0.970547 0.941977 0.938336 0.936478 0.933336 0.944294 italy 0.972207 0.97265 0.971951 0.969676 0.968712 0.96888 0.970379 0.969762 0.968323 japan 0.91583 0.919621 0.920058 0.911939 0.92273 0.921385 0.920955 0.920942 0.916396 jersey 0.99747 0.998075 0.998038 0.998565 0.998136 0.997751 0.997326 0.997421 0.99441 kazakhstan 0.998224 0.998178 0.99842 0.998492 0.998754 0.998816 0.998799 0.998947 0.998805 korea, repf 0.996009 0.995378 0.994611 0.993459 0.992373 0.991124 0.990184 0.989463 0.994832 kuwait 0.999255 0.999629 0.999628 0.999627 0.999685 0.999687 0.99966 0.999695 0.999315 latvia 0.999865 0.999779 0.999733 0.999678 0.999678 0.999691 0.999701 0.99966 0.99982 lebanon 0.999841 0.999854 0.99988 0.999895 0.999917 0.99993 0.999954 0.999979 0.999881 luxembourg 0.915524 0.913483 0.913985 0.914198 0.913399 0.912225 0.913173 0.912282 0.917094 malaysia 0.998542 0.998449 0.998361 0.998344 0.998447 0.998345 0.998221 0.998069 0.998821 malta 0.999307 0.997107 0.997382 0.997354 0.997484 0.997453 0.997626 0.997607 0.998558 mauritius 0.99757 0.997319 0.997189 0.99734 0.997424 0.997265 0.997632 0.997938 0.996946 mexico 0.998824 0.998803 0.998876 0.998964 0.998871 0.998836 0.998928 0.998882 0.998843 netherlands, the 0.956084 0.956245 0.960342 0.958899 0.962015 0.962362 0.962603 0.962815 0.958017 new zealand 0.999156 0.998189 0.998236 0.998079 0.99814 0.998088 0.998024 0.997977 0.998529 norway 0.986621 0.987677 0.988117 0.987873 0.987996 0.98892 0.987775 0.987251 0.984827 pakistan 0.999988 0.99999 0.999992 0.999991 0.999992 0.999991 0.999993 0.999995 0.999991 panama 0.999883 0.999764 0.999716 0.999729 0.999752 0.999736 0.999764 0.999773 0.999784 philippines 0.999848 0.999832 0.999763 0.999724 0.999758 0.999709 0.999665 0.99965 0.99978 poland, rep. of 0.999609 0.999501 0.999361 0.99934 0.999343 0.999302 0.999338 0.999405 0.999497 portugal 0.996273 0.996451 0.996944 0.997017 0.996965 0.996802 0.997123 0.997051 0.995762 romania 0.99992 0.99993 0.999935 0.999927 0.999916 0.999911 0.999888 0.999895 0.999931 russian 0.99863 0.998627 0.998501 0.998328 0.998505 0.998671 0.998643 0.998398 0.998812 saudi arabia 0.995541 0.995535 0.995201 0.995616 0.995852 0.995549 0.995137 0.99485 0.997423 singapore 0.978036 0.97727 0.977394 0.976837 0.976732 0.975962 0.975023 0.975826 0.980764 slovak rep. 0.999314 0.999366 0.999506 0.999386 0.999343 0.999268 0.999259 0.999198 0.999427 slovenia, rep. of 0.999602 0.999637 0.999633 0.999586 0.999556 0.999547 0.999566 0.999571 0.999683 south africa 0.995939 0.996171 0.996554 0.996477 0.996601 0.996981 0.997001 0.9973 0.996804 spain 0.993992 0.988117 0.987638 0.987421 0.986549 0.985842 0.986012 0.985304 0.984837 sweden 0.992987 0.993725 0.987775 0.988299 0.988354 0.98846 0.988507 0.988265 0.988353 switzerland 0.968266 0.969797 0.970828 0.9711 0.973389 0.97418 0.97454 0.974413 0.970427 thailand 0.999253 0.999157 0.999071 0.999097 0.999037 0.998992 0.998881 0.998819 0.999274 turkey 0.999976 0.999967 0.999965 0.999969 0.999976 0.999973 0.999969 0.999973 0.999956 ukraine 0.999996 0.999996 0.999996 0.999997 0.999998 0.999998 0.999994 0.99999 0.999997 united kingdom 0.900529 0.907398 0.911228 0.917611 0.93233 0.937121 0.937183 0.94098 0.914472 united states 0.779415 0.773139 0.77437 0.77811 0.773868 0.774464 0.775294 0.784998 0.793676 from the above table, it is clear to us that all countries have a very high bias, as it is noted that the highest bias was in ( ukraine ), as it reached full bias for the years (2005 to 2020), followed by ( saudi arabia ), which also reached full bias, but for the periods (2005 to 2011). this was followed by ( slovenia ) for the periods from (2005 to 2008), followed by ( latvia ) for the year (2005). this indicates that local investors in those countries and in those periods did not go towards international investment, but rather concentrated most of their investments towards local investment, which reduces profit opportunities despite the easing of restrictions and lifting barriers that impede investment operations, and this is inconsistent with the principle of diversifying investment portfolios. as the principle of diversification provides for the distribution of wealth in several investments, taking into account the correlation coefficient, which shows that there is no significant impact of financial education in those countries. on the other hand, it is noted that ( united states ) had the least bias during the study period american journal of business management, economics and banking volume 15 august, 2023 p a g e | 93 www.americanjournal.org from (2005 to 2020), followed by ( united kingdom , japan ) during the study period, which indicates the existence of an effect of financial education in those countries, and it indicates the existence of a discrepancy in between countries and the figure below shows that, figure (1) the average annual bias of the portfolios of the study sample countries from 2005 to 2020 as for the overall level, it is noted from table (2) and figure (1) that each of ( lebanon , gibraltar , egypt romania , india , turkey , costa rica , aruba, kingdom of the netherlands , pakistan ukraine ) achieved the highest bias rates and was close to the correct one ( 0.999880661 , 0.999925092 , 0.999929769 , 0.999930797 , 0.99995539 , 0.999956462 , 0.99996208 , 0.9999844 ). 02, 0.999991494, 0.999996725 ) , respectively , and this indicates a decrease in financial education in those countries . the lowest levels of bias were for ( united states , united kingdom , japan , luxembourg , germany, france , ireland , netherlands, the , italy , canada ) as it amounted to ( 0.793675726 , 0.914471875 , 0.916395783 , 0.917093668 , 0.92971997 , 0.931095855 , 0.944293715 , 0.958016767 , 0.968323148, 0.968617362 ) respectively and denotes a higher financial learning index for countries measured at country bias. from the figures and tables above , the differences are clearly evident in the country's bias towards stocks , and it is noted that all portfolios, including the us portfolio, which had the least bias, as it becomes clear that investors in general and americans in particular enjoy preferences for local stocks; that is, they tend to invest less internationally than would be expected in theory, and real foreign participation is less than the optimal part of the international assets within investors' portfolios. conclusions: 1the study proved that financial education affects it is noted that there is a disparity among emerging economies, which tend to benefit more from the improvement in the level of financial education compared to their developed counterparts. we also found that the positive impact of financial education was most pronounced during the recent financial crisis especially for economies with less developed financial markets. 0 0.2 0.4 0.6 0.8 1 1.2 a rg e n ti n a a u st ri a b ra zi l c ay m an is la n d s c h in a, p .r .: m ac ao c yp ru s eg yp t, a ra b r ep . o f fr an ce g re e ce ic e la n d ir e la n d je rs ey k u w ai t lu xe m b o u rg m au ri ti u s n ew z ea la n d p an am a p o rt u ga l sa u d i a ra b ia sl o ve n ia , r e p . o f sw ed e n tu rk e y u n it e d s ta te s 𝐸𝐻𝐵 averg american journal of business management, economics and banking volume 15 august, 2023 p a g e | 94 www.americanjournal.org 2the study proves that high levels of financial education indicate the diversification of the international portfolio, and therefore the inclusion of financial education in school curricula should be at the top of the agenda of policy makers, especially for emerging market economies. 3the study proves that there is a distinction between developed and emerging market economies in the context of financial learning, given that these it documented the differential impact of financial education on international portfolio diversification. we also noticed that the emerging economies were more sensitive to the level of education during the global financial crisis than the advanced economies , and it is related to the financial and economic policy . 4the study proves that low levels of education and the usual dependence on local portfolios can explain why the country bias remained at high levels during the early stages of the financial crisis. at the same time, foreign direct investment is dwindling and becoming more volatile. domestic demand and investment in the national economy remain limited and often insufficient to ensure sustainable development. 5the study proved that the more diversified the industry is in a country ( the local country is usa as a model ), the lower its readiness for international diversification compared to the rest of the countries . this means that large companies are more transparent , which means that the costs of information gathering and asymmetry will be lower . in addition, they will be more liquid than small companies (in general), which reduces transaction costs. . 6proved the study showed that country bias increases during crises , and this reveals that in periods of uncertainty, investors are more reluctant to invest in foreign markets . recommendations: 1should it enhances the level of efficiency of investors and encourages them to diversify their investment portfolios in terms of foreign investments. because it will help raise the level of financial education , and reduce the country's bias towards local stocks in order to take advantage of external opportunities to achieve the best trade-off between efficient returns and risks. 2she recommended the study stressed the importance of investors' interest in diversifying their investments in order to reduce the country's bias towards shares , since the local investor will move from the local environment to the international environment for investment, and this will result in greater feasibility reflected in an efficient exchange of return and risk. 3necessity to understand and realize that rates high bias indicates the concentration of domestic investment without foreign investment, as investors should they take with an eye consideration knowledge circumstances economic for other countries, and moving towards international investment because of its many advantages. 4urge entities competent on to encourage following the policy of not focusing on internal investment only and moving towards international investment because of its advantages in light of easing barriers and lifting restrictions. american journal of business management, economics and banking 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(2011) financial literacy and stock market participation. journal of financial economics, 101: 449–472. 46. verick, sher, & islam, iyanatul., the great recession of 2008-2009: causes, consequences and policy responses, discussion paper no. 4934, may, 2010. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 112 www.americanjournal.org the impact of digital transformation on increasing the competitiveness of industrial enterprises matchanova feruza abadovna, doctor of philosophy in economics (phd) ooo “surat kargo” orcid:0009-0004-0130-4767 matchanovaf@gmail.com a b s t r a c t k e y w o r d s the article examines the process of digital transformation and its impact on the competitiveness of industrial enterprises. in modern conditions, digital transformation is perceived as an objective reality reflecting social and economic progress. its emergence is associated with the fourth industrial revolution, which marked the transition to a post-industrial model of economic development. special attention is paid to the development of digital technologies capable of changing the structure of economic relations, as well as transforming traditional approaches to production processes, interaction with contractors, logistics, financial operations, personnel management, labor productivity improvement and other business aspects. all this leads to an increased role of artificial intelligence in the activities of enterprises. digital technologies, digital transformation, competitiveness, the fourth industrial revolution, industrial, enterprises, production methods. introduction the rapid development of globalization and digitalization in the global economy is contributing to an increase in the volume of innovative products at industrial enterprises and strengthening their competitive positions. currently, an urgent task is the active introduction of information and communication technologies into industry as a key market tool for increasing competitiveness. the effective development of the industrial sector requires research in the field of rapid data processing, automatic analysis of processes and factors affecting productivity, as well as the integration of information and communication technologies at all stages of production. the use of artificial intelligence to make optimal decisions and increase efficiency is becoming one of the priorities in modern industry. information and communication technologies have become a key factor in the socio-economic development of countries. their rapid development and widespread adoption have significantly transformed various sectors of the economy. at the same time, the development of ict is largely determined by global challenges and large-scale trends that shape the long-term directions of scientific and technological progress. the leaders of many developed countries recognize the importance of accelerating the transition to a digital economy capable of ensuring sustainable and inclusive growth, american journal of business management, economics and banking volume 32 january 2025 p a g e | 113 www.americanjournal.org as well as the well-being of society. the digital transformation of business today is perceived as an inevitable component of social and economic progress. its emergence is associated with the fourth industrial revolution, which became the basis for the transition to a post-industrial model of economic development. according to s. zahidi, one of the authors of the 2018 global competitiveness report, the successes of the fourth industrial revolution can make all countries more prosperous.[3] the key condition for the implementation of this model is the large-scale introduction of intelligent production. this involves the use of digital technologies in production processes using smart machines, as well as the development of specialized ict platforms that ensure coordination and management at all stages of the product lifecycle. methodology the methodological basis of the research was the works of domestic and foreign scientists studying digital transformation and its impact on the competitiveness of industrial enterprises. legislative acts, regulatory documents and materials of scientific and practical conferences devoted to this topic were also used in the analysis process. the research was based on a systematic approach, and methods of logical, comparative, and statistical analysis were used to achieve its goals. result and discussion the modern digital economy goes beyond the transfer of economic activity to the internet space. it is based on the deep penetration of information and communication technologies (ict) into all areas of economic activity: from internal processes in organizations to interaction between companies and individuals who simultaneously act as consumers and representatives of organizations. in accordance with the decree of the president of the republic of uzbekistan dated october 5, 2020, the strategy "digital uzbekistan-2030" was approved, which includes the implementation of more than 280 initiatives. these initiatives are aimed at the digital transformation of the country's regions and economic sectors in the next two years. the document details long-term challenges, including the introduction of digital technologies in areas such as telecommunications, public services, the real economy, healthcare, and cadastral activities.[1] many domestic and foreign researchers, as well as representatives of large multinational corporations, show great interest in the possibilities of information and communication technologies (ict) to increase competitive advantages. in her works, e. a. kashirina [4] analyzes how icts transform modern competition in the market, change the structure of existing sectors of the economy, help reduce costs, increase labor productivity, and stimulate the emergence of new goods, services, and business models. v. toichkina [7] in his research pays attention to the key determinants of information and communication technologies (ict) and their impact on international competitiveness. ict is considered as a relatively new source of competitive advantages for business, which, according to t. mikhalich and d. bukhalits, has not been sufficiently studied within the framework of modern theories and models of competitiveness. in his monograph, j. hu and m. quaddus emphasize the importance of information systems for the effective functioning of companies. among the five key competitive strategies are: price leadership, product differentiation, innovation strategy, mergers and acquisitions, and strategic alliances.[6] according to the international organization for standardization, icts are a collection of resources, american journal of business management, economics and banking volume 32 january 2025 p a g e | 114 www.americanjournal.org methods, processes, and tools designed to collect, store, process, transmit, distribute, and use information using software, hardware, and linguistic technologies. the classical theories of competitiveness presented by the american, british and scandinavian schools did not sufficiently focus on the role of information and communication technologies (ict). they viewed ict as just one of many tools for achieving competitive advantages. this is because most of the research of these schools was conducted in the period from the 1970s to the 2000s, when the level of development and dissemination of information technology was significantly lower than it is today. the modern world has enormous technological potential, which can become the basis for a qualitative breakthrough in improving living standards, modernizing the economy, infrastructure and public administration system. declaring 2020 the year of science, education and the digital economy, the president of uzbekistan stressed the importance of digital technologies in all aspects of modern life. in his message to the oliy majlis dated january 24, 2020, he noted that although uzbekistan scored eight points in the international information and communication technology development index for 2019, the country still lags behind other countries. building a digital economy requires significant investments in infrastructure, human resources, and financial resources. however, you need to start now, as procrastination may make this transition too difficult in the future. the main task of uzbekistan for the next five years will be the accelerated development of the digital economy. the degree of development of a country's digital economy is directly related to the development of information and communication technologies (ict) and is usually determined by various indicators: the share of the digital economy in gdp, the size of investments in the ict sector, the speed of the internet, the coverage of the country's territory and its accessibility. [2] the term “digital economy” was first introduced in 1995 at the massachusetts institute of technology (usa), where nicholas negroponte introduced the concept of “electronic economy”. [3] according to the definition of the world bank, the digital economy is a system of economic, social and cultural interactions based on the use of digital information and communication technologies (ict) in the broadest sense. it is also described as a “new paradigm of accelerated economic development”.[9] currently, there is no single definition of the digital economy in the scientific literature. gartner analysts propose its interpretation as the process of creating, consuming, and managing values related to digital products, services, and assets within organizations.[10] broadly speaking, the digital economy is the use of information technology in areas such as manufacturing, management, communications, and entertainment. from this point of view, digitalization can be equated to automation, and the term "digitalization" itself does not carry a fundamentally new content. however, the development of digital technologies significantly affects the structure of economic relations, while simultaneously transforming traditional approaches to production processes, interaction with contractors, logistics, financial operations, personnel management and productivity improvement. all this increases the dependence of businesses on artificial intelligence. since the advent of information technology, the very nature of competition has undergone significant changes. in the digital economy, one of the key areas of companies' work is to manage their competitiveness.[11] since 2016, the bandwidth of global data networks has increased significantly, increasing from 55 gbps to 1,200 gbps in just a few years. at the same time, the cost of internet services for providers decreased by 21 times: from 91.5 to 4.3 dollars per megabit per second. research shows that the increase in the number of mobile and internet users has been made possible not only by the american journal of business management, economics and banking volume 32 january 2025 p a g e | 115 www.americanjournal.org development of ict infrastructure, but also by reducing the cost of internet access while increasing its speed. digital transformation is defined as the process of business changes caused by the introduction of digital technologies. this process affects management practices, operational processes, products, business models, corporate strategies, and organizational goals. this shows that modern digital technologies not only improve and support existing approaches, but also contribute to the creation and implementation of innovations in all areas of activity. digital transformation includes the stages of digitization of information, data processing in digital format and the integration of digital technologies into the information and communication infrastructure. the key factors influencing the competitiveness of a company are the effectiveness of its marketing strategy, production facilities, financial operations, as well as the quality and competitiveness of products. in the domestic market, the introduction of digital technologies based on new, non-standard economic and managerial approaches will lead to a complete transformation of domestic companies. they will be transformed into innovative structures capable of successfully competing in the markets. the key elements of production in a digital economy are data in digital format, as well as their processing and use in large volumes. this allows for significant improvements in efficiency, quality, and productivity in various business areas, including storage, sale, delivery, and consumption, compared to traditional management approaches. however, the digital economy cannot be considered solely as a collection of digital companies or as a separate industry. all aspects of an enterprise's activities, including lifestyle, the basis for the development of economic systems, the functional component of the information economy and the new model for the information society, should be based on a well-coordinated infrastructure that ensures the integration of all enterprise systems. based on international experience, it can be noted that scientific and technological progress is a key driver of socio-economic development. it helps to increase labor productivity, improve the quality of products and services, and strengthen their competitiveness. uzbekistan has significant potential to exploit these opportunities. at the same time, the country's industrial complex has unique production features that must be taken into account when introducing new technologies. factors influencing competitiveness improvement in the context of digital transformation. american journal of business management, economics and banking volume 32 january 2025 p a g e | 116 www.americanjournal.org uzbekistan's industrial sector plays a central role in the country's economy. in recent years, significant changes have taken place in its structure and large-scale reforms have been carried out. to maximize the opportunities of digital technologies, mechanisms are being introduced aimed at developing cooperation between state-owned enterprises and the private sector, strengthening cooperation with scientific and research organizations, rational allocation of resources, as well as the introduction of tax policies that stimulate investment in digital transformation. at the national level, major programs are being implemented to manage these changes, such as the advanced technology partnership in the united states, industry 4.0 in germany, the factories of the future project in the european union, and the made in china 2025 initiative. these initiatives demonstrate the effectiveness of digital technologies, which makes their use more widespread and in demand in various industries. in the modern world, the widespread use of the internet is closely linked to the development and implementation of digital technologies. in addition to acting as a tool for obtaining any information, the internet has become an effective channel for promoting goods and services, becoming an indispensable business resource. according to forecasts, by 2025, the economic impact of the internet of things on the global economy could range from 4 to 11 trillion dollars annually. currently, the industrial internet of things (iot) is actively developing, which allows customers and machines to interact through a network. for example, this may include placing individual production orders and connecting machines that fulfill these orders. this relationship ensures autonomous and flexible operation, adapted to the needs of customers. to support human-machine (h2m) and machineto-machine (m2m) interactions, the information technology industry provides cloud solutions that facilitate the efficient organization of such processes. the industrial internet of things (piv), which is part of the internet of things ecosystem and is focused on the needs of industrial businesses, is growing in popularity in the manufacturing sector. personalized information technology (pit) is expected to have a significant impact on the industrial sector, leading to the launch of industry 4.0, also known as the fourth industrial revolution. businesses that can effectively apply analytics to innovate and modernize their workforce through the internet of things are likely to increase productivity and revenue through the creation of new business models. according to world bank estimates, the introduction of erp systems (enterprise resource planning systems) can contribute to the growth of global gdp by $12 trillion by 2030. the optimal level of the digital economy's share in the global gdp structure is considered to be 7-8%. this share varies in individual countries: in the uk it reaches 12.4%, in south korea — 8%, in china — 6.9%, in india — 5.6%, in russia — 2.8%, in kazakhstan — 3.9%, and in uzbekistan — 2.2%. advantages and disadvantages of using digital technologies in enterprises american journal of business management, economics and banking volume 32 january 2025 p a g e | 117 www.americanjournal.org the republic of uzbekistan plans to increase the share of information and communication technology (ict) services in gdp to 5% by 2025 and to 10% by 2030, which is reflected in the draft concept for the development of the electronic government system. practice shows that the digital economy is one of the key factors stimulating innovation, increasing competitiveness and contributing to economic growth. currently, most industrial enterprises in the country operate with a low level of digitalization in the manufacturing sector. while other countries have already consolidated the trend of integrating unified knowledge management systems, using digital platforms and integrated solutions, uzbekistan is at an early stage of implementing the concept of transition to industry 4.0. as a result, the domestic industry is inferior to leading foreign competitors in terms of penetration into the finished product market, as well as in terms of price and quality. similar domestic industrial systems are often unable to ensure efficient production organization and prompt business response to market changes. to accelerate the growth and large-scale adoption of digital technologies in industry, it is necessary to update the regulatory framework. clarification of existing laws and, if necessary, amendments are required to ensure business confidence and legal certainty. in modern conditions, maintaining the competitiveness of an enterprise is impossible without adapting to new economic realities. the introduction of digital technologies, along with advances in management and production, creates the necessary foundation for ensuring sustainability and competitive advantages. conclusion any process is based on a certain theory and methodology. in the context of the study of competitiveness in the industrial sector, the development of the theoretical and methodological foundations of this field is of particular importance. as practice shows, improving methodological approaches to ensuring the competitiveness of an enterprise is not only an independent task, but also includes an analysis of all its components. this is especially true for the use of information and communication technologies (icts), which play a key role in increasing the competitiveness of industrial enterprises in the context of the digital transformation of the economy. an integrated approach to the study of data and related aspects contributes to achieving significant results. an analysis of the methods of assessing competitiveness proposed by domestic and foreign scientists has shown that at the moment there is no single universal methodology for assessing the competitiveness of companies and organizations. this is due to a number of disadvantages inherent in existing approaches. among the key problems are the difficulty of compiling a complete and objective list of factors for analysis, difficulties in comparison with other companies due to their constant diversification, as well as the uncertainty of market boundaries. in the context of the modernization of the country, the digitalization of industrial economic systems takes various forms. at the moment, most manufacturing companies are still in the early stages of digital transformation. technologies such as additive manufacturing, the industrial internet of things, mechatronics, robotics, computing systems, and virtual modeling remain relatively new and underdeveloped. as a result, locally produced products are often inferior in quality to their main international competitors, have a lower cost and arrive on the market late. in modern conditions, increasing the competitiveness of an enterprise requires taking into account new economic realities. the integration of digital technologies, along with management and production innovations, creates a stable foundation american journal of business management, economics and banking volume 32 january 2025 p a g e | 118 www.americanjournal.org for successful development and strengthening of competitive positions. references 1.указ президента республики узбекистан от 5 октября 2020 года утверждена стратегия «цифровой узбекистан-2030». 2.послание президента республики узбекистан шавката мирзиёева олий мажлису. 2020 год 24 января. 3.матчанова ф.а. (2021) информационно-коммуникационные технологии как ключевой фактор конкурентного преимущества узбекистана. бюллетень науки и практики.7(9),445 459.http://elibrary.ru/ item.asp?id= 46616875. 4. каширина е.а. роль информационных технологий в достижении конкурентного преимущества // системное управление. 2016. № 1(30). 5.тоичкина и.в роль информационно-коммуникативных технологий в повышении международной конкурентоспособности // экономика и социум. 2016. №3(22). с. 1496-1498. 6.mihalič t., buhalis d. ict as a new competitive advantage factor case of small transitional hotel sector // economic and business review. 2013. vol. 15. no. 1. pp. 33–56 7.xu j., quaddus m. managing information systems. atlantis press. 2013. pp. 27-40. url: doi: 10.2991/978-94-91216-89-3_2 8.lundvall b.a. the social dimension of the learn-ing economy // danish research unit for industrial dynamics, working paper 96-1, 1999 9.ильченко а.н., ильченко к.а. цифровая экономика как высшая ступень развития инфокоммуникационных технологий. https://elibrary.ru/item. asp?id=36319011 10.перспективы получения цифровых дивидендов в евразийском экономическом союзе. доклад всемирного банка. url: http://d-russia.ru/wpcontent/uploads/2016/10/navas-sabaterj._wb-digital-dividends-for-eaeu-digitalagenda.pdf. 11.савич ю.а. цифровая трансформация и влияние ее на конкурентоспособность промышленных предприятий. http://elibrary.ru/item. asp7ick36540712 12.савич ю.а. цифровая трансформация и влияние ее на конкурентоспособность промышленных предприятий. http://elibrary.ru/item.asp7ick36540712 13.цифровизация промышленных экономических систем: проблемы и последствия современных технологий. http://elibrary.ru/item.asp?id=40102231 14.цифровизация, промышленный интернет вещей и индустрия 4.0: url: https://neftegaz.ru/tech_library/view/ 5098-tsifrovizatsiya-promyshlennyj-internet-veschey-iindustriya-4.0. http://elibrary.ru/%20item.asp?id=%2046616875 https://elibrary.ru/item.%20asp?id=36319011 http://d-russia.ru/wpcontent/uploads/2016/10/navas-sabater-j._wb-digital-dividends-for-eaeu-digital-%20agenda.pdf http://d-russia.ru/wpcontent/uploads/2016/10/navas-sabater-j._wb-digital-dividends-for-eaeu-digital-%20agenda.pdf http://elibrary.ru/item.%20asp7ick36540712 http://elibrary.ru/item.asp7ick36540712 http://elibrary.ru/item.asp?id=40102231 american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 60 www.americanjournal.org prospects for the development of innovative activities of commercial banks kurbonboev sherzodbek shavkat ugli academic lyceum of westminster international university in tashkent a b s t r a c t k e y w o r d s the main purpose of the scientific article is to present the results of improving the banking system of the republic based on international experience, innovative ideas and market-methodological foundations. this scientific article discusses the theoretical and practical foundations of the use of innovative technologies in the banking payment system, the factors influencing it, and the practical measures taken by the commercial sector of our country in this direction. tera also expressed his proposals and scientific conclusions on the development of digital services using innovative technologies in the banking system of the republic. innovative digital economy, banking system, electronic money, electronic money circulation, payment systems, bank, client, remote service control, regulatory framework, international practice. introduction currently, the introduction of digital technologies requires innovative development of the banking system. therefore, the main focus of the article is on the innovative development of banking in uzbekistan. based on this urgent task, the article highlights the importance of innovative development of banking, analyzes the theoretical views of domestic and foreign scientists and the current situation on the innovative development of the banking system, and also presents proposals and conclusions on the innovative development of banks. the work reflects the efforts of commercial banks of the republic to develop their activities in an innovative way [1]. it also notes the need to use the principles of the digital economy to achieve this convenience. the possibilities of innovative development of the banking system through the effective use of digital technologies are highlighted. as we all know, today each of us has the opportunity to do most of our work at home, with a single phone or tablet in our hands. it is also possible to open a mobile application or go to the official website of any organization to obtain the necessary information, place an order, make a payment, and even send a complaint. there are programs and devices that allow you to perform these operations in a matter of seconds, because before it took months, often you had to stand in line all day. all this is the result of innovative development, digitization of information, integration of information distributed from paper sources into electronic databases. the rapid penetration of innovations into our lives has sharply increased the globalization of world economic relations, competition among suppliers of goods and services, including in the financial services market. the banking system also continues to widely introduce information and communication technologies based on the requirements of the time, and as a result, american journal of business management, economics and banking volume 31 december 2024 p a g e | 61 www.americanjournal.org many banking services are being automated. now almost all banking services can be obtained instantly using a mobile phone or special devices. a few years ago, such an opportunity did not exist. the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025, approved by the head of state on may 12, 2020 [2], provides for the widespread introduction of modern innovative information and communication technologies, automation of business processes and expansion of the activities of commercial banks. remote banking services. priority tasks were identified. digital changes are optimizing the business models of banks, the banking and payment segment from remote banking services to changes in the field of financial transactions. 2. analysis and discussion of results. international experience shows that for the financial services market to function effectively, sustainably and fairly, it is necessary to have professional standards and codes of conduct in financial institutions, effective supervision and regulation of the financial market by regulators, protection of the rights of consumers and the use of financial services, as well as increasing financial literacy. as interrelated factors. figure 1. analytical information for 2020-2021 on payment documents used in settlements made through the interbank payment system of the central bank [3] in 2020, the launch of another interbank payment system the central bank’s “instant payment system” made it possible to make payments 24/7 through remote services to legal entities and individual entrepreneurs who are customers of commercial banks. in september last year, the “instant payment system” made it possible to transfer budget and tax payments to the treasury of the ministry of finance, as well as to make payments on credit 24/7. as a result, in the first half of this year through the “instant payment system” 127.0 trillion. 5.4 million soums worth of transactions, including 4.3 trillion soums to the budget. more than 724,000 soums were paid. digital business is the emergence of new business models that combine the physical and digital worlds. the "explosive" growth of social networks, the smartphone market, broadband internet access, machine learning technologies and artificial intelligence is changing the world in which commercial banks and companies operate. they need to fill vacancies in the new market or adapt to changes by 1 2 0 9 3 0 2 0 0 4 7 9 0 4 4 3 9 0 1 1 7 7 2 6 3 6 6 0 2 4 3 4 5 3 2 8 9 2 3 7 2 7 3 7 5 1 3 0 1 9 0 10000 20000 30000 40000 50000 60000 70000 80000 transaction volume number of transactions 2020 q1 2020 q2 2020 q3 2020 q4 2021 q1 2021 q2 american journal of business management, economics and banking volume 31 december 2024 p a g e | 62 www.americanjournal.org changing existing vacancies. as it turns out, the digital transformation of organizations is a response to the development of new information technologies and their active spread around the world [4]. we can also see a significant increase in the number of terminals installed and terminal services compared to the last three years. this will create favorable conditions for the population and entrepreneurs using banking and financial services, as well as facilitate faster cash flow (table 2). table 1 information on current terminals and installed terminals of 10 largest banks operating in the republic of uzbekistan as of march 1, 2022 [3] № commercial banks integrated payment terminals number of terminals and infokiosks installed 1. “national bank” 40 346 655 2. “own industrial construction” bank 33 472 470 3. “agrobank” 43 392 1 971 4. “microcreditbank” 23 402 252 5. “xalq banks” 51 462 1 373 6. “partnerbank” 31 742 785 7. “asaka bank” 15 382 257 8. “silk road bank” 24 047 537 9. “contact bank” 12 897 275 10. “ipoteka-bank” 42 094 634 as can be seen in the table above, the xalq bank leads with 51,462 installed terminals, while agro bank leads with 1,971 in the number of kiosks. this, in turn, increases the demand for banking services, as well as the improvement of remote service mechanisms. although digital data is a valuable economic resource, it will only benefit when it becomes digital thinking. with the advent of the digital economy, the challenges of creating digital platforms and monetizing the rapidly growing digital data are emerging. at the same time, it is important to identify ways to create value, the means of overcoming obstacles in these processes. it provides an understanding of the potential for value creation and distribution, forms of value renewal, management, and value acquisition. to date, more than 75,000 businesses are provided with qr codes (stickers) of the qr-online information system (figure 1). launch of this system: ➢ in addition to the installed pos-terminal (traditional trading terminal) of business entities to make quick payments for purchases and provide quality customer service; ➢ allowed organizations operating in areas such as delivery, passenger transportation, as well as selfemployed people (freelancers) to reduce operating costs by timely receipt of payments by customers via qr-code without the use of payment terminals. american journal of business management, economics and banking volume 31 december 2024 p a g e | 63 www.americanjournal.org figure 2. information on bank plastic cards in circulation as of january 1, 2018-2022 (thousand units) [3] in our country, the infrastructure of uzcard and humo retail payment systems, as well as payment services provided within the payment systems, is developing. as a result of the work on expanding the infrastructure of bank cards, the number of issued bank cards as of july 1 this year amounted to 23.7 million. grains (figure 2). in the first six months of this year, 95.5 trillion soums were transferred to bank cards. soums, which is 20% more than in the same period last year. the amount of transactions through payment terminals increased by 15% to 49.8 trillion soums. soums, and the amount of transactions through info kiosks amounted to 29.3 trillion soums. in 2020, the central bank also launched a qr-online instant payment information system, which allows you to make payments for goods and services at the expense of funds on the bank card without direct use of the bank card and payment terminal. to use it, trade and service entities apply to commercial banks and receive a qr-code formed on the basis of available bank details, and buyers will be able to pay for goods and services by scanning (“verifying”) the role and importance of digital technologies in the development of the world is growing every year. in particular, the widespread introduction of technical transformation processes in the financial sector further increases the efficiency of banking systems, payment operations, lending and other similar services. this type of technology, which improves and optimizes financial services, is a financial technology called fintech [3]. 0 5000 10000 15000 20000 25000 30000 2018 2019 2020 2021 2022 19226 17687 20547 25776 27105 american journal of business management, economics and banking volume 31 december 2024 p a g e | 64 www.americanjournal.org figure 3. information on the number of terminals, atms and kiosks in circulation as of january 1, 2018-2022 (thousand units) [3] the number of atms and kiosks installed in crowded places increased by 1,194 units compared to the same period last year to 12,298 units, and the number of payment terminals used by businesses increased by 8,375 units, or 438.9 thousand units. thanks to the integration of national payment systems with international payment systems visa and mastercard, customers began to make transactions with international bank cards at atms and terminals located in the territory of the republic. in general, the state of the economy, in particular, the level of customer satisfaction with financial and payment services, is inextricably linked with the quality of banking services, their attractiveness and diversity, as well as the financial capabilities and literacy of customers. paragraph 2 of the resolution of the president of the republic of uzbekistan dated february 17, 2021 “on measures to create conditions for the accelerated introduction of artificial intelligence technologies” the task of introducing as a result, the coverage of the customer audience will expand, it will spread to remote areas, including the reduction of the cost of service processes due to the reduction of the branch network. 3. conclusions and suggestion financial technology is an industry that consists of intermediaries in the banking and financial services market, i.e. companies that use technology and innovation to compete with traditional financial institutions. according to acctnture consulting, a total of $ 27.4 billion was spent on fintechstarts around the world in 2017, up 18 percent from 2016. expected most successful financial technologies the forbes finn tech 50, which compiles the list of expected most successful financial technologies, notes that financial services and market capitalization in the u.s. are a serious competitor to the $ 8.5 trillion domestic banking sector. it should be noted that financial technologies are able to change not only the individuals and legal entities dealing with financial capital, but also the image of the financial 5632 6859 9203 11800 12940 0 2000 4000 6000 8000 10000 12000 14000 2018 2019 2020 2021 2022 american journal of business management, economics and banking volume 31 december 2024 p a g e | 65 www.americanjournal.org market itself. this type of development allows you to analyze data, monitor the situation on the stock exchange and choose strategies for investment. q they continue to operate. in general, the digital economy is a major ally of corruption and the “black economy”. because numbers seal everything, store it in memory, and provide information quickly when needed. in such circumstances, it is impossible not to hide any information, to make secret transactions, not to give full information about this or that activity, the computer will show it all. the abundance and structure of the data prevents false and misleading work, because it is impossible to deceive the system. as a result, it is impossible to launder “dirty money”, steal funds, spend them inefficiently and aimlessly, exaggerate or hide [5]. this will increase the flow of legal funds into the economy, taxes will be paid on time and correctly, budget allocations will be transparent, funds allocated to the social sphere will not be stolen, and funds allocated for schools, hospitals and roads will be fully available. in short, the fact that the state has chosen the path of developing the digital economy opens up new directions in the field of information technology and electronic document management in general. references 1. li c. et al. does the bank’s fintech innovation reduce its risk-taking? evidence from china’s banking industry //journal of innovation & knowledge. – 2022. – т. 7. – №. 3. – с. 100219. 2. decree of the president of the republic of uzbekistan no. up-4947 dated february 7, 2017 “action strategy in five priority areas of the republic of uzbekistan in 2017-2021”. 3. the drawing was created by the author on the basis of data from the site -www.cbu.uz 4. broby d. financial technology and the future of banking //financial innovation. – 2021. – т. 7. – №. 1. – с. 47. 5. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis. january 24, 2020. http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 79 www.americanjournal.org the role of the internal control system in increasing the reliability of accounting reports kilicheva farida beshimovna associate professor, renaissance university of education, department of finance and credit bozorova ozoda rakhimovna senior lecturer renaissance university of education department of finance and credit a b s t r a c t k e y w o r d s this article focuses on the role of the internal control system in corporate financial management and its significance in improving the reliability of financial reporting. the main components of the internal control system, its potential for reducing errors, preventing financial fraud, and enhancing efficiency through process automation are discussed. the article also highlights the issues of increasing transparency in accounting processes and implementing modern technologies. internal control system, accounting, financial reporting, automation, fraud prevention, risk management, transparency. introduction this article is devoted to the role of the internal control system in the financial management of an enterprise and its importance in increasing the reliability of financial statements. the main components of the internal control system, its possibilities for reducing errors, preventing financial fraud, and achieving efficiency through process automation are discussed. the article also covers issues of increasing the transparency of accounting processes and the introduction of modern technologies. accounting reporting is the main document that reflects the financial results of the enterprise. these reports serve as a reliable source of information not only for the management of the enterprise, but also for interested parties. ensuring the accuracy and reliability of reports is directly related to the internal control system. through the internal control system, the financial processes of the enterprise are properly organized, and errors and fraud can be prevented. this article analyzes the main aspects of the internal control system, its practical significance, technological capabilities, and recommendations for its development. the main components of the internal control system: the internal control system should have the following components to form accurate and reliable accounting reports: american journal of business management, economics and banking volume 33 february 2025 p a g e | 80 www.americanjournal.org 1. control environment: attention to the internal control system by the management of the enterprise and the creation of the necessary conditions in this regard. this component determines the level of responsibility of employees and determines the general management policy. 2. risk assessment: the success of the internal control system depends on the identification and assessment of the financial risks of the enterprise. by identifying risks, measures can be taken to reduce them. 3. control activities: at this stage, regular monitoring of accounting processes and financial transactions, re-examination of documents and transactions are carried out. 4. information and communication: the timely and correct formation of financial information and its delivery to the necessary parties increases the effectiveness of the internal control system. 5. monitoring: the internal control system should be constantly monitored and regularly improved [1]. the role of the internal control system in financial management 1. reducing errors with the help of an internal control system, the ability to detect and eliminate errors in financial statements increases. this serves to ensure the reliability of reports. in particular, the use of automated programs in accounting processes is of great importance in reducing errors [2]. 2. preventing financial fraud the presence of an internal control system is an effective tool for detecting and preventing financial fraud in an enterprise. this system controls illegal financial transactions, incorrect data entry, and other risks [3]. 3. improving analysis and planning the internal control system helps to analyze financial data and develop specific recommendations for the development of enterprise activities. modern technologies are important in the effective organization of an internal control system. 1. automated programs the use of software such as sap, 1c, quickbooks increases the efficiency of the internal control system. these programs can automate calculations, analyze in real time, and strengthen control [4]. 2. artificial intelligence systems based on artificial intelligence play an important role in analyzing financial data. they allow you to identify and predict risk factors. 3. cloud technologies cloud technologies provide secure storage of data and remote access to them. this is an important tool in ensuring the continuity and security of reports. american journal of business management, economics and banking volume 33 february 2025 p a g e | 81 www.americanjournal.org practical recommendations: 1. strengthening internal audit by organizing an internal audit every quarter, errors and shortcomings in the accounting system of the enterprise can be identified. 2. improving the skills of employees by improving the skills of specialists working in the internal control system, it is possible to organize control processes in a high-quality manner. 3. introducing modern technologies the use of cloud technologies and artificial intelligence-based systems helps to increase the effectiveness of internal control. the internal control system plays an important role in increasing the reliability of accounting reports. through this system, the possibilities of preventing financial errors, eliminating fraud, and analyzing data expand. the effectiveness of the internal control system can also be increased by introducing modern technologies. the attention of enterprises to the internal control system is an important factor in increasing their financial stability and competitiveness. references: 1. omonov, a. "korxonalarda ichki nazorat tizimini tashkil etish." buxgalteriya nazariyasi va amaliyoti, 2022. – b. 22-28.[150] 2. karimov, s. "moliyaviy xatolarning oldini olishda ichki nazoratning roli." yangi iqtisodiyot jurnali, 2021. – b. 35-40.[80] 3. xolmatova, m. "ichki nazorat va moliyaviy firibgarliklarni aniqlash usullari." moliyaviy boshqaruv jurnali, 2023. – b. 45-51.[65] 4. rahimov, u. "ichki nazorat tizimini avtomatlashtirishning afzalliklari." innovatsion boshqaruv texnologiyalari, 2021. – b. 60-65.[200] 5. abdurahmonov, i. "buxgalteriya hisobotlarida ishonchlilikni ta’minlash." moliyaviy texnologiyalar, 2022. – b. 50-55.[90] 6. tursunov, f. "zamonaviy buxgalteriya tizimlarida ichki nazorat." ilm va amaliyot integratsiyasi, 2023. – b. 40-46.[120] 7. qodirova, d. "axborot-kommunikatsiya texnologiyalari va ichki audit american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 128 www.americanjournal.org decarbonization of the economy: the essence and mechanisms for its implementation abdikarimova aynura abay qizi tashkent state technical university management direction 3year student a b s t r a c t k e y w o r d s this article covers the essence of decarbonization of the economy and the mechanisms of its implementation. the purpose of decarbonization is to replace fossil fuel-based systems with electricity generated using low carbon sources such as renewable energy sources. carbonization, greenhouse gas emissions, renewable energy sources, paris agreement, global climate crisis, green economic recovery, greenhouse gases. introduction the world community has long been talking about decarbonization within the framework of the climate change agenda, but in the near future it is not possible to make a large-scale transition to alternative energy sources even in developed countries. the reduction of greenhouse gas emissions and the development of renewable energy sources have become the main economic policy in the developed world, especially in the countries of the european union. the european union's green deal has become increasingly linked to plans to restore the economy. in the united states on this issue, the biden administration announced plans to adopt a green new deal. developed countries that have created infrastructure and legal conditions for the development of renewable energy sources have the opportunity to take advantage of the crisis to accelerate energy exchange. in developing countries, on the contrary, the current crisis has revealed, on the one hand, conflicts between the goals of reducing emissions and the goals of solving basic social problems through industrialization and economic growth. once we get rid of the crisis, there is a high probability that preference will be given to the most favorable energy sources primarily coal, oil and natural gas, which will lead to an increase in greenhouse gas emissions. this project aims to identify key approaches to decarbonization after and after the covid-19 crisis and to assess differences in approaches between developed and developing countries. the project defines three group tasks. american journal of business management, economics and banking volume 24 may 2024 p a g e | 129 www.americanjournal.org first of all, it is an assessment of the capabilities and determination of the necessary conditions for combining the goals of economic development and waste reduction, based on the analysis of longterm low-carbon development strategies of developed and developing countries. secondly, it is the assessment of climate and energy policy tools and the development of a methodology for choosing climate policy tools and measures depending on the socio-economic and institutional conditions of development. the tasks of the third group consist in the search for a consistent form of carbon regulation in energy exporting countries, which, on the one hand, creates a greater incentive to reduce emissions, and on the other hand, minimizing risks for the economy and society. in addition, this energy exchange must necessarily be carried out with the state support of oil and gas companies or the creation of benefits for them in the domestic market if certain conditions for decarbonization are met, but not with the introduction of additional taxes and restrictions! currently, the world community is promoting the idea of decarbonization the restructuring of the economy and energy systems in order to drastically reduce co2 emissions, which will reduce the burden on the environment in the future. the international council of experts on climate change created co2 emission scenarios. based on these scripts, it is the only script that achieves the goals of the paris agreement. going this way means lowering co2 net emission after 2050 to 0 or below zero. however, it is now almost impossible to follow the rcp2.6 scenario: the world is currently developing according to the scenario of an increase in average temperature to 3℃. the current level of technology does not allow to abandon the use of traditional energy sources: coal, oil, natural gas. however, it is already possible to increase the efficiency of their use to reduce waste. full decarbonization of energy systems is the only solution to climate stabilization. in practice, to achieve 0 net emissions, it is necessary to switch to clean energy sources and switch from fossil fuels to electricity. in countries that rely more on high technology, services, and digital technology, electricity is becoming more and more selective fuel. its share in global final consumption is approaching 20% and will continue to grow. decarbonization involves reducing carbon dioxide (co2) emissions. decarbonization: • economy in general-provides for a reduction in co2 emissions per unit of gdp (ton/ us dollar/ person). • energy system economy-reduction of co2 emissions per unit of energy produced (kg/ barrel). instructions for decarbonization: • electrification; • decarbonization of electricity generation; • energy efficiency. these areas are interconnected and support each other. the purpose of decarbonization is to replace fossil fuel-based systems with electricity generated using low carbon sources such as renewable energy sources. since the entry into force of the paris agreement on climate in 2016, the relevance of decarbonization of energy systems has increased. the effects of global climate change are associated with an increase in the concentration of co2 in the atmosphere. the increase in the amount of co2 in the atmosphere was associated with the beginning of the industrial revolution, and coal became the main source of american journal of business management, economics and banking volume 24 may 2024 p a g e | 130 www.americanjournal.org energy. ratified by 174 nations, the paris agreement aims to reduce global temperature increases by 2 times the pre-industrial level. during its development, the world economy experienced several energy transitions from coal to coal, then oil dominated, and now natural gas consumption is developing at a rapid pace. previously, energy exchange was caused by convenience and cost competitiveness, but now the environmental aspects of the choice of energy resources are becoming more important. in the context of the global climate crisis, the world oil and gas industry is striving for a low-carbon future. each country is now seeing a significant shift to renewable energy sources as an environmentally sustainable and climatefriendly alternative to creating energy. according to iea 2017, industrial heat accounts for 2/3 of industrial energy demand and almost 1/5 of global energy consumption. this generates one of the most important co2 emissions, since most of the industrial heat comes from burning fossil fuels. decarbonization of this fuel and energy sector, especially high-temperature industry, requires major changes to heat. climate change in the country affects the population of uzbekistan in different ways, and by 2030 at least 8 million people across the country are beginning to live in districts with high climate risk. it cited that decarbonization of the economy by 2060 (reduction of carbon dioxide emissions) would require a focus on the energy sector, which accounts for nearly 75% of greenhouse gas emissions in uzbekistan. significant investment is required to implement and adapt decarbonization programs. it is estimated that uzbekistan will need about us $ 60 billion to mitigate the adverse effects of the climate on labor productivity, roads and bridges, livestock and irrigation sector. in addition, replacement and decarbonization of aging energy infrastructure will require approximately $ 340 billion by 2060. a large part of this investment can be made by the private sector. today, the world community recognizes climate change as one of the most serious challenges facing humanity. the un framework convention on climate change has set two main areas for its resolution: reducing greenhouse gas emissions into the atmosphere and adapting to observed and expected climate change. failure to take timely measures and further increases in the amount of greenhouse gases in the atmosphere can lead to unspeakable consequences of climate change. on may 30, 2021, president shavkat mirziyoyev, in his speech at the second international summit “cooperation for green growth and global goals-2030” (p4g), proposed conceptual proposals for important areas of cooperation in the field of “green economic recovery” were put forward. at this summit, the president of the republic mentioned that climate changes are evident in central asian countries such as all countries of the world, the basin of the main rivers in the region and its environmental problems, such as shrinking biodiversity, gases that increase evaporation and largescale pollution of the atmosphere, are seriously alarming not only the countries of the region, but also the world community. it is known that the republic of uzbekistan joined the un hadley convention on climate change on june 20, 1993, and the kyoto protocol, a global agreement on quota trade based on the mechanism of environmental protection, reduction of the spread of greenhouse gases associated with this document, was ratified in 1999. on april 19, 2017, uzbekistan signed the paris agreement at the un headquarters in new york. to sign the agreement, a document was submitted to the secretariat of the un framework convention american journal of business management, economics and banking volume 24 may 2024 p a g e | 131 www.americanjournal.org on climate change to reduce its nationally determined contribution to greenhouse gas emissions. this agreement was ratified on october 3, 2018. it was noted that in accordance with paragraph 253 of the state program” year of youth support and strengthening of population health " of 2021, the development of a long-term state policy of the republic of uzbekistan on mitigating the consequences of climate change is established. in order to ensure the implementation of this item, representatives of the committee on ecology and environmental protection in the legislative chamber of the supreme assembly, specialists of the hydrometerology center and the relevant ministries and departments worked together to develop a strategy for combating the consequences of climate change in the republic of uzbekistan until 2030. references 1. xashimova, s. n., abdikarimova aa barqaror rivojlanishni та’minlashda, and yashil iqtisodiyot va raqamlashtirish. "iqro.–2023." т 3.2: 23-26. 2. hashimova s. n. guaranteed green economy and development //экономика и социум. – 2022. – №. 4-1 (95). – с. 61-64. 3. хашимова с. н. пандемия шароитида рақамли иқтисодиётни ривожлантириш //экономика и финансы (узбекистан). – 2022. – №. 3 (151). – с. 7780. 4. nig’matullayevna x. s. et al. qayta tiklanuvchan energiya texnologiyalarini qo’llash //образование наука и инновационные идеи в мире. – 2024. – т. 39. – №. 1. – с. 98-101. 5. nigmatullayevna h. s. green taxonomy: essence, application and effectiveness //british journal of global ecology and sustainable development. – 2024. – т. 24. – с. 84-87. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 13 www.americanjournal.org the role and priority tasks of industrial zones in the economic indicators of kashqadarya region xidirov xurshid jamshid o‘g‘li qarshi muhandislik-iqtisodiyot instituti mustaqil izlanuvchisi a b s t r a c t k e y w o r d s this article discusses the role of industrial zones in the economic indicators of the kashqadarya region and the priority tasks being implemented. it highlights how the region's location, rich natural resources both underground and above ground, contribute to industrial development. the article also examines the progress in industrial growth and provides recommended economic and scientific strategies necessary for further advancements. unified directorate of small industrial zones,” special small industrial zones, “entrepreneurship infrastructure development fund,” auction sales. introduction during the visit of our esteemed president to the kashqadarya region on october 24–25, 2023, the task was set to increase the volume of industrial product output in the region to 40 trillion soums in the coming year. additionally, it was instructed to organize the activities of small industrial zones in all districts (cities) following the example of the qavali small industrial zone. the “unified directorate of small industrial zones,” which coordinates the activities of small industrial zones, is actively working with representatives in each district. to ensure the effective organization of industrial zone activities in the region, it is necessary to analyze existing problems and define future tasks. current status: the region has a total of 59 industrial zones covering 306 hectares, including 2 special economic zones (sezs), 42 small industrial zones, and 15 youth industrial zones. according to approved master plans, the industrial zones in the region are divided into 1,123 lots, of which 740 have been allocated for entrepreneurial projects. one of the critical tasks ahead is identifying investors and placing projects on the remaining vacant lots. the esteemed president has emphasized this issue in previous meetings. currently, 33.2 hectares of small and youth industrial zones have 327 vacant lots. of these, 58 lots on 3.9 hectares have been directly allocated to entrepreneurs by district governors without granting official participant status, resulting in unauthorized construction. consequently, these lots cannot be auctioned at this time. american journal of business management, economics and banking volume 32 january 2025 p a g e | 14 www.americanjournal.org at present, all lots have been put up for auction. a total of 269 lots covering 29.3 hectares are available on electronic platforms. efforts must be made to attract entrepreneurs to these lots. if vacant lots are successfully allocated to proactive investors, over 250 new projects worth $50 million could be launched, creating more than 10,000 new jobs. current projects and future goals as of december 1, 2023, 278 projects worth $25.8 million have been established within industrial zones, with efforts underway to operationalize them. these projects are expected to generate 2,749 new jobs. according to the approved plan, by the end of 2023, 52 projects worth $5 million are set to be launched, creating 330 additional jobs. implemented projects and challenges. industrial zones have already implemented 154 projects worth 347 billion soums, resulting in 1,892 new jobs. however, 14 projects worth 19.4 billion soums have ceased production due to various reasons, leading to the loss of 120 jobs. priorities for industrial zones under the cabinet of ministers' regulation no. 134 (march 9, 2020), industrial zones are designated for the implementation of investment projects aimed at: producing import-substituting and export-oriented finished products. utilizing modern energy-saving technologies and renewable energy sources. despite this directive, many entrepreneurs operating in industrial zones are engaged in relatively simple projects, such as producing concrete blocks, paving stones, corrugated sheets, bread, popcorn, traditional sweets, or salt packaging. given the substantial investments made to establish infrastructure in these zones, it raises questions about the appropriateness of allocating land to such basic and low-value projects. the use of these industrial zones should prioritize innovative and high-value projects that align with the region's economic development goals. infrastructure development in industrial zones in accordance with resolution pq-465, the «entrepreneurship infrastructure development fund» of the region allocated 22.4 billion soums for equipping industrial zones with external engineering and communication networks. utilization of funds: to date, 12.3 billion soums have been used to: lay 13.8 km of drinking and wastewater pipelines, extend natural gas pipelines by 4.5 km, and construct 1.5 km of access and internal roads. american journal of business management, economics and banking volume 32 january 2025 p a g e | 15 www.americanjournal.org additional allocations: as per the decision of the regional council of people's deputies dated october 28, 2023, 2.7 billion soums were allocated to «kashqadarya regional electric networks» to supply electricity to five facilities. challenges in small industrial zone land allocation issues with land allocation: according to cabinet resolution no. 134 (march 9, 2020), land plots in small industrial zones should be leased to entrepreneurs. however, under resolution no. 685 (november 30, 2022), these plots were sold directly through online auctions with cadastral documentation. this dual system resulted in: entrepreneurs being charged both lease payments and land taxes. an increase in complaints from entrepreneurs, with 40 cases of contract cancellations and land returns to the reserve. high auction prices: the high prices for leasing land in small industrial zones have deterred entrepreneurs. example: in the «mang‘it» neighborhood of qamashi district, an 8-sotix plot for entrepreneurial purposes was initially priced at 10.8 million soums, while a 5-sotix plot within a small industrial zone was valued at 43.6 million soums. this discrepancy has led to: entrepreneurs favoring privately owned land outside industrial zones due to lower costs. negative impacts on the sale of vacant plots in small industrial zones. conclusion and recommendations the establishment of specialized small industrial zones in kashqadarya region is a significant step toward fostering industrial development. however, challenges such as high auction prices, dual taxation, and underutilized land require urgent attention. recommendations: adjust pricing policies: introduce fair pricing strategies to make small industrial zone land more competitive and attractive to entrepreneurs. simplify land allocation procedures: resolve dual taxation issues and streamline the process for land allocation to entrepreneurs. promote high-value projects: encourage innovative and high-value projects that align with the intended purpose of industrial zones. strengthen monitoring and support: assign dedicated teams to monitor the implementation of projects and provide ongoing support to entrepreneurs. by addressing these challenges, the industrial zones in kashqadarya can better contribute to regional economic growth and job creation. american journal of business management, economics and banking volume 32 january 2025 p a g e | 16 www.americanjournal.org conclusion the industrial zones in kashqadarya region hold significant potential for driving economic growth and creating employment. however, several challenges remain, including the allocation of vacant lots, ensuring compliance with investment priorities, and addressing underutilization of existing infrastructure. moving forward, a strategic approach is required to attract high-value projects and maximize the economic benefits of these industrial zones. establishment of specialized small industrial zones. textile industry zone in koson district: based on presidential decree pf-2 dated january 10, 2023, a «small industrial zone specialized in textile» was established on a 6.5-hectare plot in the «do‘stlik» neighborhood of koson district. construction materials industry zones in kitob and dehqonobod districts: under presidential decree pf-6244 dated june 9, 2021, small industrial zones specializing in construction materials were established in kitob and dehqonobod districts. the responsibility for effectively managing these zones was assigned to “o‘zsanoatqurilishbank.” furniture industry zones in qarshi city and district: in line with presidential resolution pq-5155 dated june 6, 2021, small industrial zones for furniture manufacturing were established in qarshi city and district. the allocated land plots were divided into lots and sold to 15 entrepreneurs through auctions. references 1. o‘zbekiston respublikasi prezidenti sh.mirziyoyevning 2023 yil 24-25 oktabr kunlari kashqadarya viloyati tashrifi davomida berilgan topshiriqlar va kengaytirilgan tarzda o‘tkazilgan yig‘ilish bayoni, 35-son 13.11.2023 y, 03-ra 1-16396. 2. vazirlar maxkamasining “kichik sanoat zonalari to‘g‘risidagi nizomni tasdiqlash haqida”gi 134son qarori 09.03.2020 y. 3. o‘zbekiston respublikasi prezidentining “paxta-to‘qimachilik klasterlari faoliyatini qo‘llabquvvatlash, to‘qimachilik va tikuv-trikotaj sanoatini tubdan isloh qilish hamda sohaning eksport salohiyatini yanada oshirish chora-tadbirlari to‘g‘risida” gi pf-2-sonli farmoni, 10.01.2023 y. 4. o‘zbekiston respublikasi prezidentining “2023-2025 yillarda o‘zbekiston respublikasining ijtimoiy va ishlab chiqarish infratuzilmasini rivojlantirish chora-tadbirlari to‘g‘risida”gi pq-465sonli qarori, 30.12.2022 y. 5. xalq deputatlari kashqadarya viloyat kengashining 2023 yil 28 oktabrdagi vi-65-105-4-0-k/23-sonli qarori. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 9 www.americanjournal.org opportunities to increase investment attractiveness in uzbekistan mizamova umida jamoliddinovna tashkent state university of economics master e-mail: mizamovaumida@gmail.com +998883793535 a b s t r a c t k e y w o r d s in this article, the improvement of the investment environment in our country, the creation of a favourable business environment, socioeconomic reforms aimed at attracting investments, measures to organize the effective use of investments in economic sectors and the prospects of attracting investments, the way to develop economic sectors and industries through the effective use of investments trends, the impact of investments on the economy, directions of the effectiveness of investments in the development of the economy of uzbekistan are presented. investment, investment environment, investment attractiveness, foreign investments, direct foreign investments. introduction first of all, every country strives for economic development, to join the ranks of developed countries in the world. through this, it seeks to develop the macro and micro environment and increase the gross domestic product. attracting foreign investments is also very important for such large-scale works. the development strategy of new uzbekistan for 2022-2026 envisages a number of goals and tasks to further improve the investment environment in the country and increase its attractiveness. in particular, in the 26th goal of the development strategy, it is planned to further improve the investment environment in the country and increase its attractiveness, to take measures to attract 120 billion us dollars, including 70 billion dollars of foreign investments in the next five years. ensuring a favorable investment environment and its attractiveness in our country is an urgent task today, that is, it is desirable to increase the attractiveness of the state by creating a favorable investment environment for attracting investment. the law of the republic of uzbekistan "on investments and investment activities" states that "investments are tangible and intangible assets and rights to them that are invested by the investor in the social sphere, entrepreneurship, scientific and other types of activities based on risks for the purpose of profit, including rights to intellectual property objects, as well as reinvestments. investment attractiveness means creating a positive investment environment, expanding the use of available investment resources in the world, creating a favorable environment for investors, and creating a total economic, legal and organizational environment that positively affects the investment dynamics and environment. today, in our country, special attention is being paid to american journal of business management, economics and banking volume 30 november 2024 p a g e | 10 www.americanjournal.org introducing legal mechanisms for the protection of foreign investors, giving them favorable privileges and preferences for their free activity, and improving the investment environment in general. a number of laws and regulatory documents adopted in this regard are important programs for encouraging the attraction of foreign investments and guaranteeing the protection of investors' rights. the investment environment leads to the level of development of the economy of our republic, as well as an increase in investment activity. therefore, it is necessary to create all opportunities to attract foreign investments to the republic's economy. main part: today's world economy is based on global competition. no national economy can develop through self-sufficiency. therefore, today there is a sharp competition not only for goods and services, but also for attracting foreign investments. in this situation, the governments are paying special attention to increasing the volume of foreign direct investments by creating all-round favorable conditions for business, in particular, ensuring the integrity of property, sharply reducing the tax burden, liberalizing foreign economic activity, and providing relief to investors in terms of free disposal of profits. because it is impossible to provide regularly growing needs with only national investments. on the other hand, sufficient conditions created for national investors serve to increase the interest of foreign investors as well. at the first plenary meeting of the council of foreign investors under the president of uzbekistan held on november 16, 2022, the issue of attracting foreign investors to our national economy was discussed in detail. in the speech of the president at the first plenary meeting of the council of foreign investors, as in all areas, the work on the creation of a healthy competitive environment, the active involvement of foreign investors in the network, the creation of a healthy competitive environment, the creation of an efficient stock market, the available opportunities and the ways of their effective use were shown. . as noted at the plenary meeting, the development of private business, which is the driver of the modern economy, is inextricably linked with the development of the banking and finance sector. in this case, private business constantly strives to widely introduce innovations in order to maximize profits. for innovations, the banking and financial system should be able to offer mutually beneficial business financing options. then we can expect further acceleration of the complex development of the real and financial sectors of the economy. the private sector is more effective than the state participation. at the same time, the state share is high in the banking sector of our country. in this case, commercial banks are unable to achieve high economic efficiency through investment activity. according to the results of the 9th month of 2022, the total capital of banks with a state share was 60.3 trillion soums, and the net profit reached 3.9 trillion soums. as a result, the average return on capital of state-owned commercial banks for the three quarters of 2022 was 6.5 percent. in private commercial banks, this figure was 20.3 percent. it can also be seen that the state cannot operate successfully in business in most cases. therefore, the participation of private investors, especially foreign investors, is extremely important in this sector. the activity of national and foreign investors in the banking sector creates a healthy competitive environment in the sector, which, in turn, serves sustainable development. because the activity of both the private sector and foreign investors in this area ensures the innovative development of commercial banks. today, the investment environment in our country and further increasing its attractiveness occupies an important place in the development of our national economy. the main reasons for this are: american journal of business management, economics and banking volume 30 november 2024 p a g e | 11 www.americanjournal.org firstly, the production facilities are outdated, they need to be restored or technically re-equipped or completely renewed; secondly, the low material and technical base of the industrial sector, the existence of loss-making enterprises; thirdly, the wealth of natural resources of our country and the possibility of building many processing enterprises here; fourthly, the need to establish small modern compact enterprises in places close to rural areas; fifthly, the need to produce many ready-made products in our republic, etc. conclusions and suggestions: one of the main problems in attracting foreign direct investment is the lack of a favorable investment environment, that is, the improvement of the sphere of regulation and protection of private property rights. such a situation can reduce the rate of economic growth. in order to improve the investment environment, i believe that it is necessary to create an institutional basis for attracting private and direct foreign investments. in order to activate foreign investments, it is necessary to increase the possibility of liberalization of business activities. it is necessary to work hard to identify and eliminate obstacles that prevent the development of business. as a result, it is possible to increase investment attractiveness and ensure stable economic growth. i think that it is necessary to stimulate investment activities, ensure maximum transparency and organize work with appeals and requests of foreign investors through the development of public-private partnership and project financing tools. in conclusion, it should be noted that one of the important issues is to study the experience of developed countries, the laws and decisions adopted by the country to improve the investment environment, and apply their necessary aspects to the conditions of uzbekistan. references 1. o’zbekiston respublikasi prezidentining farmoni, 28.01.2022 yildagi pf-60-son 2. o‘zbekiston respublikasi prezidentining 2022-yil 21-dekabrdagi oliy majlisga murojaatnomasi 3. o‘zbekiston respublikasining “o‘zbekiston respublikasining 2021-2023-yillarga mo‘ljallangan investitsiya dasturini amalga oshirish chora-tadbirlari to‘g‘risida”gi pq-4937 son qarori. 4. o‘zbekiston respublikasi prezidentining 2020-yil 18-avgustdagi pf-6042-son va “hududlarning sanoat salohiyatini oshirishga doir qo‘shimcha chora tadbirlar to‘g‘risida”gi farmoni 5. o‘zbekiston respublikasining 2019-yil 14-dekabrdagi “investitsiyalar va investitsiya faoliyati to‘g‘risida”gi o‘rq №598 son qonuni. 6. o‘zbekiston respublikasi prezidentining farmoni, 2022 — 2026-yillarga mo‘ljallangan yangi o‘zbekistonning taraqqiyot strategiyasi to‘g‘risida28.01.2022 yildagi pf-60-son 7. “science and education” scientific journal volume 1issue 4 july 2020 8. o‘zbekiston respublikasi davlat statistika qo‘mitasining rasmiy sayti 9. смаглюкова тм. общие подходы к формированию региональной инвестиционной политики. // современные проблемы науки. 2014. № 1. 10. vahabov a.v., xajibakiyev sh,x., muminov n.g “xorijiy investitsiyalar” o‘quv qo‘llanma – т.: moliya, 2010. –153 b. american journal of business management, economics and banking volume 30 november 2024 p a g e | 12 www.americanjournal.org 11. salimov b., xotamov i. investitsiyaviy faollik: tahlil va imkoniyatlar. tdiukoll.monogr. – t.: fan va texnologiya, 2019, 93-b. 12. mustafakulov sh.i. investitsion muhit jozibadorligi. – t.: baktria press, 2017 – 18-b. 13. ikromovich, isayev fakhriddin. "concept of economic analisys and its structural components." international journal of marketing and technology 7.12 (2017): 1-13. 14. https://review.uz/oz/post/v-2022-godu-planiruetsya-privl american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 51 www.americanjournal.org green budgeting as a new tool of sustainable development and the practice of its application in uzbekistan ismailova nasiba komildjanovna tashkent state university of economics “finance and financial technologies” department. e-mail: ismailovank1275@gmail.com a b s t r a c t k e y w o r d s in this article, the transition to a green economy in order to ensure the stability of the economy, prevention of climate change, inclusive economic growth, the use of budget and fiscal policy tools to achieve environmental goals and the transition to green budgeting practice in uzbekistan, the advantages of green budgeting, and the issues that exist during the transition to this practice are highlighted. given. economic stability, inclusive growth, renewable energy, public finance, budget policy, environmental budget, public sector entities, public budget funds, green economy, green budgeting, green bonds. introduction green budgeting involves the use of budget and fiscal policy tools to achieve environmental goals, the assessment of the impact of these policies on the environment and their compliance with national and international obligations. “green budgeting” is an innovative approach to public finance management that combines fiscal responsibility with environmental considerations. green budgeting is the main instrument for the transition to a green economy, and people’s well-being is proportional to environmental protection, climate change mitigation, climate change adaptation measures, and in terms of giving incentives to green innovations by public support for government spending and tax policies has been determined. the oecd paris partnership on green budgeting, held in paris on 12 december 2015, aimed to develop new and innovative tools to assess and develop improvements in adapting national expenditure and revenue processes to climate and other environmental objectives. according to research by the world bank, by 2050, climate change may force 216 million people to leave the countries where they live. according to the who, every year 2 billion people suffer from lack of clean drinking water and 600 million people suffer from food-related diseases, 30% of deaths of children under 5 are food-related. american journal of business management, economics and banking volume 25 june 2024 p a g e | 52 www.americanjournal.org the term “green budgeting” first appeared in the 1987 report of the brundtland commission, which stated that “governments’ central economic and sectoral agencies should now be directly and fully responsible for ensuring that their policies, programs and budgets support development” appeared in the recommendation. after this report, experimental integration of environmental issues into public financial management took place in countries such as norway and france, which introduced the environmental profile of the public budget in 1989. italy was also a leader in this field, in 1999 the italian parliament instructed the national government to allocate all resources related to the environment in the annual budget to produce an “environmental budget” (ecobilancio) alongside the draft budget. the exercise continues with the latest “environmental budget” released in 2022. literature review at the initial stage of development, there are no clearly defined definitions and methodology for the concept of green budgeting. this is a new topic for the economy of uzbekistan, very little research has been conducted on this topic, there is no educational literature at all. as part of the implementation of the concept of socially oriented management (esg), it is possible to say a number of works devoted to the ideas of “greening” of the financial and budget systems of the countries of the world and considered in the context of green financing of the green budget. the first term to emerge for the area of fiscal policy aimed at achieving sustainable development goals in light of the environment and the goals of the paris agreement was “climate change budgeting”. it focused on reducing climate change, promoting ideas to combat greenhouse gas emissions and climate change. subsequently, to emphasize the need to include environmental issues in the general agenda of sustainable economic growth, the un environment program (unep), the united nations development program (undp), the organization for economic co-operation and development (oecd), the world bank and the international monetary fund (imf) started to use terms such as green economy, green growth, green finance and green budgeting. research method scientific observation, analysis and synthesis methods are effectively used in the article. also, environmental impact assessment indicators of the budget and fiscal policy regarding green financing and budgeting recommended in the regulatory documents of the international monetary fund (imf), world bank (the world bank) were used. analysis and discussion of results ensuring economic stability in uzbekistan, consistently introducing green economy mechanisms in all sectors of the economy, including adaptation to climate change and natural disaster risk management in national policy, socio-economic development planning and budget processes adaptation to climate change, the importance of green budgeting is demonstrated by the fact that a participatory approach to planning, implementation, monitoring and evaluation of disaster risk reduction and mitigation is in place. decision of the president of the republic of uzbekistan dated december 2, 2022 no. dp-436 “on measures to increase the effectiveness of reforms aimed at the transition of the republic of uzbekistan to a “green” economy by 2030” and many other regulatory and legal documents are aimed at the development of the green economy. american journal of business management, economics and banking volume 25 june 2024 p a g e | 53 www.americanjournal.org the trend of co2 emissions in uzbekistan, which is one of the main factors in the management of risks that may arise during the transition to a green economy, is mentioned. uzbekistan’s annual co2 emissions have been growing for the last 7 years. we may face a decreasing trend in the average co2 emission per capita of uzbekistan. this trend is explained by the sharp increase in population. figure 1. co2 emissions in uzbekistan 1 the benefits of green budgeting are: first, sustainable development green budgeting allows for more efficient use of land, water and other natural resources. these organizational works are important not only for short-term perspective, but also for achieving long-term perspectives. the main idea behind having green accounting is to help realize the benefits of economic growth while meeting environmental goals. second, reducing the financial deficit integrating environmental and climate information with public financial management, rational use of natural resources, taxes and fines for excess carbon will save more public resources and increase revenues. these efforts help to improve public policy and rational use of public resources. third, a strong environmental policy will increase the relevant information available to analyze important policy issues, leading to a strong environmental policy based on holistic and integrated information. fourth, growth in research and development green accounting/budgeting helps promote a sustainable future for business as it provides detailed information on green research and development and green public procurement. fifth, integrated budget green budgeting involves combining many directions of sustainable development (ecological balance, social development and economic growth) in a completely single policy, that is, in a budget document. the government attaches great importance to the targets aimed at reducing carbon emissions. 1https://www.undp.org/sites/g/files/zskgke326/files/2024-01/cpeir_uzbekistan_2023_uzb.pdf/ 4.9 4.5 4.9 4.4 3.9 3.5 3.6 0 1 2 3 4 5 6 1991 y 1996 y 2001 y 2006 y 2011 y 2016 y 2021 y average co2 emissions per capita of uzbekistan (in tons) https://www.undp.org/sites/g/files/zskgke326/files/2024-01/cpeir_uzbekistan_2023_uzb.pdf/ american journal of business management, economics and banking volume 25 june 2024 p a g e | 54 www.americanjournal.org green budgeting ensures the coherence of economic, social, network and environmental policies, as well as planning instruments including financial measures and budgeting. in green budgeting, after identifying green priorities and incorporating them into strategic plans, it is crucial to assess the financing gap and prepare a green financing strategy. in order to achieve the goals of green budgeting, the sources of financing should be confirmed in strategic plans. key financial resources for achieving green goals require systematic use of all sources of finance, including traditional loans, grants, external debt, national and international climate funds, carbon markets, green bonds, and insurance. countries around the world are implementing active financial policies for green budgeting. as of 2022, among the oecd countries, 19 sovereign states have issued green bonds to finance green projects in their budgets, amounting to 130 billion dollar, but sovereign green bonds still account for just 0.2 percent of all government securities. for the first time, uzbekistan placed green sovereign international bonds in the amount of 4.25 trillion soums on the london stock exchange in october 2023. it should be noted that sovereign international bonds issued in soums are the first “green” sovereign bonds of the cis countries. funds from green bonds are used to implement water-saving technologies, develop railway transport and underground transport, organize sanitation works and ensure cleanliness in settlements, against wind erosion and sand inundation of water resources will be used to finance green projects such as tree plantations. the united nations development program (undp) was involved in the project selection process. “sustainalytics” received a second-party positive opinion on the green bond program. taking into account the high demand for “green” bonds in the national currency of the republic of uzbekistan, it was possible to reduce the interest rates (coupon payment) of 3-year soum international bonds from the expected 18% to 16.25%. 1.9 trillion with this transaction due on november 23, 2023 international bonds in the amount of soums were redeemed ahead of time. conclusions and suggestions public investment to combat climate change and achieve environmental goals is key to transitioning to a more inclusive, green and sustainable economy. at each stage of the public investment management cycle, there are key public finance management practices that help achieve green goals. there are a number of important issues to consider in the transition to green budgeting. we will mention them below. 1. upfront costs such as investing in renewable energy infrastructure during the transition to green budgeting can create fiscal risks. in some cases, certain costs may appear to outweigh potential benefits, leading to resistance from financial decision makers. in addition, budget reallocation may be required, which may pose challenges for budget sustainability and financial management. 2. implementation of green budgeting requires appropriate technical experience and capacity in government agencies or organizations. lack of knowledge or skills in environmental accounting, impact assessment methodology, or data collection can make it difficult to accurately measure and monitor environmental costs and outcomes. inadequate capacity to effectively integrate environmental issues into budgeting processes may hinder the implementation of green budgeting initiatives. 3. green budgeting practices require accurate and reliable data on environmental impacts, costs and outcomes. 4. the participation of stakeholders, such as civil society organizations, businesses and communities, is essential for successful green budgeting practices. however, the availability and american journal of business management, economics and banking volume 25 june 2024 p a g e | 55 www.americanjournal.org quality of data can be limited, especially in developing countries or sectors where environmental data collection is not common practice, where insufficient and unreliable data can undermine the effectiveness of green budgeting. which leads to erroneous decisions and inaccurate reports. 5. the transition to green budgeting involves changes in systems and organizational structures. poor implementation planning and coordination can lead to delays, inefficiencies or budget decisions, and insufficient integration of environmental considerations. suggestions and recommendations in uzbekistan, any approach to green budgeting should be based on the country’s existing public financial management (pfm) system, thus matching the strengths and limitations of the existing budgeting process. when a country has a strong system of effective budgeting, it leads to the integration of performance goals with the country’s national environmental and climate goals. in addition, if the budget expenditure review processes are well organized in the country, it is appropriate to take into account the impact of the measures on the climate goals as well as the effectiveness of the country’s budget. the implementation of green budgeting at the country level requires the inclusion of the following key elements: first, it should cover the environmental protection goals of budget funds and public sector entities. secondly, the methodology used to assess the compliance of the budget policy with environmental goals should be based on international standards. thirdly, the effectiveness of control over each sector of the state by state control bodies should be high. fourthly, it is necessary to ensure the transparency and accountability of this process, to properly organize public control. references 1. decree of the president of the republic of uzbekistan dated january 28, 2022 no. dp-60 “on the development strategy of new uzbekistan for 2022-2026”. 2. decision no. dp-4477 of the president of the republic of uzbekistan dated october 4, 2019 “on approval of the strategy of the transition to the “green” economy of the republic of uzbekistan in the period 2019-2030”. 3. decision of the president of the republic of uzbekistan dated december 2, 2022 no. dp-436 “on measures to increase the effectiveness of reforms aimed at the transition of the republic of uzbekistan to a “green” economy by 2030”. 4. the paris agreement adopted as part of the un climate change convention. december 12, 2015. 5. n ismailova. development of the national institutional system of the crypto market in uzbekistan. current approaches and new research in modern sciences 3 (1), 219-224. 6. n.ismailova. prospects for the development of participative budgeting. e conference zone, 64-67. https://scholar.google.com/citations?view_op=view_citation&hl=ru&user=3elygpwaaaaj&sortby=pubdate&citation_for_view=3elygpwaaaaj:aqlvkmm33-oc american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 18 www.americanjournal.org ways to improve the financial efficiency of the use of investments in the sectors of the national economy namozov olim botirovich tashkent state university of economics, phd a b s t r a c t k e y w o r d s this article provides for the development, discussion and conclusions based on the study of the specifics of the theoretical foundations of the development of sources and methods of financing investment projects in national economy. investment, investor, investment activity, financing, investment projects, sources of financing, stock markets, real investments, financial investments. introduction in the world, active attraction of investments into the economy serves to improve the standard of living and well-being of the country's population, to achieve the production of competitive products through the introduction of modern technologies in industries and areas of the economy. as announced by the united nations conference on trade and development, “in 2020, among high-performing investment source countries, china accounted for 71 percent, the united states 54 percent, and germany 36 percent.”1 particular attention is paid to preventing a significant decrease in the flow of foreign direct investment into the economy, preventing a reduction in financing of investment projects, a preliminary assessment of investment capital and investment risks while increasing the financial efficiency of the use of investments.[1] scientific research continues around the world aimed at creating favorable conditions for investors, making widespread use of the country’s investment potential, pursuing an active investment policy in the country and improving the infrastructure of the regions. scientific research is being conducted to provide various financial benefits to investors, develop stock markets, create new free economic zones, place investments in promising sectors of the economy, increase the investment attractiveness of regions, sell shares through public offering (ipo), expand the phased placement of shares through spo, growth attracting investments through the creation of technology parks. in uzbekistan, priority is given to the development and localization of new types of products through the implementation of investment projects, taking effective measures to eliminate imbalances in attracting investments to the regions, improving rental relations on the basis of investment agreements or public-private partnerships. the action strategy adopted for the medium term sets the objectives of “improving the investment climate, actively attracting foreign, primarily foreign direct investment in sectors of the economy and regions of the country; reducing differences in the level of socio-economic american journal of business management, economics and banking volume 25 june 2024 p a g e | 19 www.americanjournal.org development of regions; accelerated development of cities and towns by attracting private foreign investment”2. to ensure the fulfillment of this task, one of the pressing issues is the research and development of the widespread introduction of modern market principles for the use of investments in sectors of the national economy and increasing their financial efficiency. analysis of the relevant literature in various economic literature, the concept of "investment activity" has been defined in different ways. having studied them deeply and widely, it is necessary to pay special attention to the following definitions given to the content of investment activity. according to economist neshitoy, he defined that "investment activity is a combination of placing (investing) funds and performing practical actions in order to obtain income and achieve beneficial results" [2]. l.l. igonina also mentions that investment activity can be understood in a narrow sense. according to him, he explains: "investment activity, or in other words, private investment activity (investing) manifests itself as a process of transformation of investment resources into investments" [3]. chinese scientist f. xiaolan analyzes the impact of the increase in the country's innovation potential on productivity. according to the results of his research, inward investment has a significant positive effect on the overall innovation capacity. but this effect will depend on the absorptive capacity of the receiving national economy and the availability of innovation-providing factors [4]. one of the economists of our country, d. g'. gozibekov defined that "the content of investments consists of obtaining funds from clear and reliable sources, mobilizing them in a reasonable manner, maintaining the capital value, taking into account the level of ricks, and obtaining the intended effect" [5]. o'.a. according to haydarov, "investment activity is the development and foundation of new advanced innovative ideas that meet the requirements of the present time, their material, technical and financial support. as a result, by financing the activities of the established industry, it creates opportunities for investors to achieve high profits" [6]. some aspects of improving the scientific-theoretical and methodological foundations of the development of investment activity in our republic have been covered in the scientific works of the above-mentioned economists. all this is to carry out in-depth studies on the research of development paths based on the factors affecting the sources and methods of financing investment projects of the national economy and to improve the scientific-theoretical and methodological foundations of their financial provision, to develop and improve the formation of sources and methods of financing investment activities by applying them to the practice of our country. requires the necessity. research methodology in detail, this article refers to the laws of the republic of uzbekistan on entrepreneurship, the decree of the president of the republic of uzbekistan, the works of the president of the republic of uzbekistan, the scientific works of economists in the socio-economic spheres. analysis and results achieving high rates of economic growth in our country, increasing the competitiveness of the national economy, consistent continuation of institutional and structural reforms to further reduce the american journal of business management, economics and banking volume 25 june 2024 p a g e | 20 www.americanjournal.org participation of the state in the economy largely depends on the use of investments in the national economy and issues of increasing their efficiency. in addition, the radical modernization and diversification of agriculture, as well as its accelerated development, further strengthening of private property and its priority, stimulation of the development of small businesses and private entrepreneurship is also largely related to investment processes. also, for the comprehensive and proportionate socio-economic development of regions, districts and cities, investment activity is required. if you pay attention to the analysis of investment indicators attracted to the national economy during the period of new uzbekistan, you will notice that investments attracted to the industries and spheres of the country’s economy tend to grow in succession of years. the direction of "green" economy is a new direction of economic science that appeared at the turn of the 20th century, which emphasizes the need to reduce the negative impact of human economic activity on the environment and promotes economic growth. promotes the concept of sustainable development with minimal risk to the environment. table 1 sources of financing of fixed capital investments in the economy of uzbekistan, in percentage of gdp sources of investment 19962000 20012005 20062010 20112015 20162020 2021 2022 a. foreign investment 5,8 5,2 6,2 4,8 9,2 13,7 12,8 direct investments 0,8 1,2 3,7 2,3 3,9 4,1 4,5 foreign loans 5,0 4,0 2,6 2,5 2,4 7,2 6,7 government guaranteed loans 4,6 3,3 1,0 1,0 3,16 2,5 1,7 v. domestic investments 20,2 16,5 16,7 18,9 19,7 18,3 16,8 budget funds 7,0 3,9 1,9 1,3 1,8 3,0 2,4 centralized bank loans 1,5 0,3 funds from extra-budgetary funds 0,3 0,3 1,1 1,3 1,2 0,0 0,0 recovery and development fund 0,4 0,9 1,3 0,4 0,3 funds of enterprises 7,9 8,7 9,3 8,0 8,1 9,3 9,1 commercial bank loans and other debt funds 0,4 0,8 1,4 2,6 3,6 2,6 2,0 population funds 3,0 2,5 2,6 4,7 3,7 3,1 3,1 investments in fixed capital relative to gdp, percentage 26,0 21,7 22,9 23,7 28,7 32,4 30,0 in the uzbekistan-2030 strategy, a number of target tasks for the transition to a "green" economy are defined. among them, "renewable energy sources to reach 25 thousand mw and their share in total consumption to 40%, development of the market of green certificates in the industry and introduction of environmental marking practice, transition of public transport to environmentally friendly fuel, reduction of greenhouse gases per unit of gdp in 2010 reduction from the level by 30%, radical improvement of the environmental situation, elimination of environmental problems affecting human life" are among these. it is necessary to determine the sectors and productions that are considered priority for attracting foreign investments aimed at modernization of production, development of the country's export american journal of business management, economics and banking volume 25 june 2024 p a g e | 21 www.americanjournal.org potential; implementation of production, transport-communication and social infrastructure projects; the establishment of a technological park requires the creation of a wide range of production enterprises for the production of industrial products and household appliances that replace imports, as well as the creation of new jobs; deepening the reform of the banking system and ensuring its stability; increasing the capitalization level and deposit base of banks; it is necessary to further expand lending to promising investment projects and small business and private business entities. conclusions in conclusion, it should be noted that the importance of investments for our national economy depends on a number of factors, among which the following stand out: the possibility of additional financing of large investment projects; use of advanced methods of production organization by attracting foreign investment in the latest technologies and equipment, innovative projects. at the same time, in our country, it is often pursued by the desire to protect enterprises from technically and financially strong competitors. for example, in connection with the introduction of a large amount of import duties on imported goods, a convenient opportunity is created for the enterprises of our republic to sell their outdated products in the domestic markets at later increased prices. the use of the following recommendations in the development of sources and methods of financing investment projects is of great importance in ensuring the quality of financing and their successful implementation: instead of a one-time payment, the amount of compensation calculated when allocating irrigated land to newly established enterprises in the regions as a share of the local authority in the charter of the enterprise development of legal criteria of proportional formation. in this case, the development of a mechanism for the formation of the 51% state share specified in the law on public-private partnership in proportion to the amount of investment to be made through negotiations with the entity of the enterprise being established. references 1. https://unctad.org/system/files/official-document/wir2021_en.pdf 2. neshitoy s.a. investments. textbook. –m.: dashkov and k, 2007. – p. 15. 3. igonina l.l. investments. educational pos. – m.: economist, 2005. – p. 25. 4. xiaolan fu, ‘foreign direct investment, absorptive capacity and regional innovation capabilities: evidence from china’, abstract, department of international development university of oxford october 2007. 5. gozibekov d.g'. investment financing problems t.:2002. i.f.d. diss. autoref. 11-14 p. 6. haydarov o'.a. "improving the mechanism of financing investment activities within the framework of the national economy" t.:2020. i.f.f.d. (phd) diss. autoref. 14 p. https://unctad.org/system/files/official-document/wir2021_en.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 65 www.americanjournal.org functions and methods of organization and management of the processes of formation of first aid skills among nonmedical students palvanova umida baxramovna assistant, in the department of oncology and radiation diagnostics, urgench branch of tashkent medical academy umida.bahramovna93@gmail.com orcid: 0000-0002-6587-3318 a b s t r a c t k e y w o r d s the analysis of the consequences of industrial accidents and various disasters shows that one of the main causes of the negative impact of striking factors is a human being: workers are not able to apply in these situations the knowledge, skills and abilities in the field of protection from dangerous (emergency) situations received at the university. in other words, they have not developed perception, understanding and transformation of a specific situation in the system "man danger" when performing their professional activity. accordingly, readiness to work in suddenly changed conditions, in the development of extreme situations (fire, explosion, earthquake, flood, etc.), the ability to make and apply competent decisions, have become more and more demanded qualities of a graduate of the university [1]. emergency, dangerous situations, accidents, disasters, first aid, non-medical students, interactive scenarios, role-playing games introduction when organizing the teaching and learning process, the main goal is to be able to give students the necessary theoretical knowledge and practical skills on the subject. a skill is understood as an action in which individual operations have become automated as a result of an exercise. the fact that a given action has become a skill means that the individual, as a result of the exercise, has acquired the ability to carry out this operation without making its performance a conscious goal. when in the process of learning a student develops the ability to perform an action, he first performs this action in a detailed manner, fixing each step in his consciousness. the capability to perform an action is first formed as an ability. in the process of training and action, the ability is improved, the intermediate steps of this process are no longer realized, the action is performed fully automated and the person forms a proficiency in performing this action, that is, the ability turns into a skill [2]. first aid is a skill that not only contributes to saving lives, but also plays an important role in building responsibility and civic engagement in society. although non-medical students in higher education may not seem to be directly involved in situations requiring medical intervention, teaching them first american journal of business management, economics and banking volume 25 june 2024 p a g e | 66 www.americanjournal.org aid skills is of key importance. first of all, students spend most of their time in public places: in dormitories, on sports fields and on public transportation. in these environments, emergencies requiring first aid can occur at any time. for example, heart attacks, allergic reactions, and sports injuries are all instances where knowledge of first aid skills can save a life or prevent serious complications. in addition, students are an active part of society and may find themselves witnessing accidents or ailments in their friends, neighbors, or random passersby. in such situations, first aid skills become essential, and the more people in the community who possess these skills, the greater the likelihood of a successful outcome in critical situations. the development of first aid skills among non-medical higher education students is a critical aspect of public health and civil security that contributes to the preservation of lives and the well-being of society as a whole. organizing the processes of first aid training among non-medical students requires a systematic approach and effective planning. methodology nowadays, the tasks of first aid skills formation in non-medical higher education students should be: mastering the basic principles of first aid-students should master the basic steps necessary to provide first aid in various emergency situations, such as fainting, heat stroke, frostbite, trauma, scalds, burns, bleeding and others; practical skillsstudents should have practical skills such as proper cpr, cardiac massage, bandaging, tourniquet and so on; awareness of emergency medical conditions-students should know the signs of various conditions that require immediate medical attention and how to respond to them; psychological trainingstudents should be prepared to provide first aid in stressful situations and trained in basic principles of communication with and support for victims in times of distress; ethical considerations-students should be familiarized with basic ethical principles related to first aid, including respect for confidentiality, respect for personal autonomy, and the like; regular updating of skillsstudents should periodically update their knowledge and skills by participating in first aid trainings, seminars or training courses; to improve the level of students' training it is necessary to get away from formalism in the learning process, to get the student out of the desk and put him in a situation close to the real one. training should be organized in the form of problem classes with simulation of various types of accidents. the main purpose of such classes is to practice tactics and skills of correct behavior, methods of quick collection of information about the victim, schemes of notification of rescue services and administration, and most importantly to teach to mobilize all available forces and reserves, to quickly make rational decisions in difficult conditions of an emergency situation (darkness, rain, cold, lack of necessary means of rescue). considering modern requirements to the learning process and taking into account modern methods of pedagogical technologies, we propose the following methods, the application of which will improve the assimilation of first aid skills among students of higher education institutions (table 1) table1. american journal of business management, economics and banking volume 25 june 2024 p a g e | 67 www.americanjournal.org interactive scenario-based learning is an approach in which learners are actively involved in the learning process through the use of simulated scenarios that require them to make decisions and perform actions under conditions that are as close to the real world as possible. this method is used to practice skills and behaviors in a variety of situations, giving participants the opportunity to practice and receive feedback. role-playing methodology is an active learning method that involves acting out scenarios that simulate real-life situations. this method allows students to try on different roles, which helps to develop communication, decision-making and problem-solving skills. using multimedia in teaching is an effective method that combines different types of media content (video, audio, images, text and interactive elements) to enhance learning. this methodology helps to make learning more interactive and engaging, as well as enhancing learning through multi-channel perception of information. the team exercise method is an active learning method aimed at developing teamwork, communication, leadership and problem-solving skills through group assignments. the feedback and reflection technique is an important component of the educational process aimed at improving the knowledge, skills and personal growth of participants through systematic analysis of their activities and receiving constructive feedback. this method promotes deep understanding of the material covered, development of critical thinking and awareness. methods of teaching first aid skills interactive scenarios scenario and case creation roleplaying games students play the role of victims and helpers use of educational videos and multimedia materials providing students with access to videos and multimedia resources team exercises organizing group exercises where students work in teams and provide first aid feedback and reflections after completion, give students an opportunity to discuss the process and identify short comings and errors american journal of business management, economics and banking volume 25 june 2024 p a g e | 68 www.americanjournal.org results and discussion in the process of theoretical analysis of the scientific works published in this field, we came across different approaches used by the authors in relation to the development of first aid skills, so in scientific article ekimova, e. s. also states that the following principles are applied for effective work with study groups: a) the principle of interactive learning, which implies active communication of participants with each other and with the teacher; equality, built on a partnership relationship between learners and the learner, the implementation of feedback; the realization of the interests of adult learners. this principle supports high motivation and contributes to the understanding of the problem posed by the trainees; b) the principle of psychological safety, i.e. modeling of psychologically safe conditions for intensive, emotional communication during the performance of tasks; c) simulation of various types of accidents, the main goal is to practice tactics and skills of correct behavior in an emergency situation and ways to quickly collect information about the victim, to learn to quickly make rational decisions in difficult conditions (darkness, rain, cold, lack of necessary means of rescue); d) use of simulators for cardiopulmonary resuscitation, which contributes to the approximation of conditions in the classroom to real conditions; e) taking into account the emotional complexity of the material: the lessons and the material under consideration should stimulate positive emotions [3]. practical training should be completed on a positive emotional background. to intensify the learning process it is necessary to create conditions for better perception of information: use slides, educational films, tactile sensations are useful for trainees when working with the simulator [4,5]. in his work "situational approach in the mastering of first aid techniques by students of secondary school" kulagin, a. s. emphasizes that, to implement a systematic approach to the mastering of first aid techniques for victims in the course "basics of life safety" researchers have developed and implemented a set of situational problem tasks, including the characteristics of situations related to the need for first aid in various emergency conditions. this complex includes tasks of two types: nonsimulation (training) and simulation (real). the solution of these tasks involves a sequential ascent from the mastering of general algorithms of first aid to such direct actions in situations close to real conditions. the solution of non-simulation tasks involves familiarization of general education students with the situation presented in text or graphical form. its solution involves the student's performance of actions of analytical, evaluative, predictive and recommendatory nature with the choice of necessary in specific conditions of the algorithm of actions without the use of practical skills. simulation tasks provide further complication of the conditions of situational tasks, requiring additional material and technical equipment, modeling the situation, close to real conditions. the solution of this type of tasks for students has the character of game activity, assuming "living" the situation in its game embodiment (m. v. klarin). in didactic terms, the solution of imitation tasks by students involves a sequential passage of stages: analysis of conditions and requirements of the task; selection of the necessary algorithm of actions; characterization of the algorithm; performance of practical actions on first aid. experimental work on the use of situational approach in the mastering of first aid techniques by general education students in schools of nizhny novgorod region allowed us to speak about the effectiveness of the chosen methodology[6]. american journal of business management, economics and banking volume 25 june 2024 p a g e | 69 www.americanjournal.org conclusion in order to optimize the process of formation of first aid skills, we propose to develop a systematized educational program for students of higher educational institutions. within the framework of the training it is proposed to use various methods to improve first aid skills, such as interactive scenarios, organizing role plays with active participation of students, using educational videos and multimedia materials, as well as conducting team exercises and reflection. an important part of this approach is the opportunity to discuss the first aid process, identify areas for improvement and develop strategies to overcome them. references 1. ekaterina v. dimova formation of life safety competencies in the conditions of contextualized learning in higher education institution abstract of the thesis for the degree of candidate of pedagogical sciences 2. trescheva o.l. to the question of systemic substantiation of individual health and its components // health and education: materials of the international congress of valeologists. spb., 1999. pages. 171177. 3. ekimova, e. s. psychological barriers of trainees when studying the topic "first aid techniques" on civil defense courses" / e. s. ekimova, s. v. kolyaskina, v. a. furman. text : direct // pedagogy of higher school. 2016. № 3.1 (6.1). pages. 74-76. 4. korchagina tatiana aleksandrovna formation of skills on the basics of first aid in students using technical means of training "omsk state pedagogical university" (omsk). 5. korchagina tatyana aleksandrovna formation of practical skills in the field of first aid for students using multimedia teaching tools at the lessons of life safety basics "omsk state pedagogical university" (omsk). 6. kulagin, a. s. situational approach in the mastering of first aid techniques by the students of a comprehensive school / a. s. kulagin, g. v. sukhov. text : direct // pedagogy of higher school. 2016. № 3.1 (6.1). pages. 121-123. 7. significance of first aid skills development among students in non-medical educational institutions periodica journal of modern philosophy, social sciences and humanities том 27, стр 93-98 8. relevance of organizing the processes of teaching students first aid in non-medical educational institutions collection of the international scientific and practical conference on "role of innovations in medicine" pp 546-548 9. models of organization and management of the processes of formation of first aid skills among students of non-medical educational institutions international scientific and practical conference "engineering aspects of traditional medicine" pp 153-155 grozny, chechen republic. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 135 www.americanjournal.org strategy for accelerated development of sericulture in uzbekistan: from opportunities to results ubbiniyazov muratbek azat ugli student of samarkand state veterinary university of animal husbandry and biotechnology, nukus branch madetova nilufar maxkamjan qizi student of samarkand state veterinary university of animal husbandry and biotechnology, nukus branch madetova mavluda maxkamjan qizi student of samarkand state veterinary university of animal husbandry and biotechnology, nukus branch a b s t r a c t k e y w o r d s this article examines the measures taken by the government of uzbekistan to stimulate the development of sericulture in the country. the primary focus is on the organization of breeding silkworm stations, increasing the areas of mulberry plantations, and improving the quality of produced silk. silkworm breeding projects receive state support to increase export potential and create new jobs. uzbekistan, sericulture, development, breeding stations, mulberry plantations, export, state support, cocoon production, investment, employment. introduction success is not determined solely by the presence of opportunities. desired results can be achieved through the proper utilization of these opportunities, skillful combination of significant potential with advanced implementation approaches, comprehensive state support, and a constant search for the most optimal and promising solutions, including in sericulture. in recent years, sericulture has embarked on a path of development. nevertheless, many issues require special attention, and the tasks whose resolution depends on further economic growth are reflected in the presidential decree "on additional measures to accelerate the introduction of market mechanisms in silkworm breeding and sericulture." the presidential decree aims to further accelerate and improve the development of sericulture in uzbekistan. one of the points is the organization of two breeding silkworm stations in the republic, which are intended to propagate the best domestic breeds of mulberry silkworms. the presidential decree is american journal of business management, economics and banking volume 24 may 2024 p a g e | 136 www.americanjournal.org aimed at further developing and improving the quality of silk and fabrics. in 2024-27, it is planned to expand mulberry plantations to 160,000 hectares, with the number of mulberry trees planted in a single row along field edges reaching 80%, to meet the republic's demand for class 5a mulberry silkworm eggs, to ensure the quality of raw silk produced in the republic to 75%, and to increase the level of its processing. our institute has a corresponding global collection that includes more than 230 varieties of mulberry, which, when properly selected and chosen, can significantly increase the republic's yield and forage base. 105,000 hectares of land will be offered for lease on the electronic trading platform "e-auksion" at a price of 10% of the determined starting cost in accordance with these target indicators. in 2024-30, it is planned to plant 515 million mulberry seedlings. by 2030, the goal is to increase live cocoon production to 40,000 tons, with the export volume in this sector reaching 276 million dollars, and to provide employment for 140,000 people. there is a plan to gradually increase seasonal employment in sericulture to 2 million people by 2027. for this purpose, based on quarterly lists of unemployed and non-employed people, including women, provided by the family and women’s committee, training courses on agronomy and silkworm breeding, as well as skills for processing them, will be organized jointly with sericulture clusters. an agreement has been reached between the association "uzbek ipak sanoat" and its system enterprises to increase the recommended purchase price of live silkworm cocoons grown in 2024 by 25%. the final settlement date for the harvest of silkworm cocoons grown by sericulture clusters is set for september. the cabinet of ministers is instructed to submit to the legislative chamber of the oliy majlis a draft law providing for the application of such benefits until january 1, 2026, as exemption from personal income tax for those engaged in growing live silkworm cocoons at home (home-based workers), exemption from social tax on funds allocated for the payment of home-based workers, and exemption of funds directed to material incentives. land tax exemption is established for land plots occupied by mulberry plantations used as a forage base in sericulture, with the application of a coefficient of 0.1 established by the kengash of people's deputies of districts and cities to tax rates. also planned for this year is the creation of breeding seed stations within the sericulture research institute in the form of a state institution in the fergana and khorezm regions, and the implementation of cocoon production for domestic breeds of mulberry silkworm eggs at the breeding seed stations by the end of 2025. all these measures aim at responsibly increasing the republic's forage base. by implementing these points, the republic can achieve high cocoon yields, obtain higher quality raw materials up to the level of world standards 5a and above, and, accordingly, farmers will receive additional income. a list of investment projects in silkworm breeding and sericulture for implementation in 2024-25 has been approved. until today, the main part of exports consisted of raw silk; now the task is to increase the level of processing to at least 75 percent. the reconstruction and development fund plans to open a credit line for commercial banks upon their requests for $30 million for 10 years in 2024-26. this line includes a three-year grace period with a 4% annual interest rate to finance investment projects in silkworm breeding and sericulture. at the same time, with funds from the credit line, commercial banks provide loans to business entities for 10 years, including a three-year grace period with an annual interest rate of 6%, of which the bank's margin is 2%. american journal of business management, economics and banking volume 24 may 2024 p a g e | 137 www.americanjournal.org the comprehensive measures outlined in the presidential decree will further improve the investment climate, expand the raw material base, and significantly increase the volume of mulberry silkworm eggs. they will also double employment in the sector by supporting cocoon producers and launching new production facilities, thereby accelerating the implementation of market mechanisms. references 1. presidential decree of the republic of uzbekistan no. up-72 dated may 3, 2024, "on additional measures to accelerate the implementation of market mechanisms in silkworm breeding and sericulture" 2. khojalepesov p.z., ismailov q.s “stages of innovative development in the new uzbekistan” / international scientific journal theoretical & applied science p-issn: 2308-4944 (print) / e-issn: 2409-0085 (online). year: 2022 issue: 09, volume: 113 3. khojalepesov p.z., sarsenbaev i.e., madetova n.m. “new directions of regulation of entrepreneurship development in the new uzbekistan” american journal of research in humanities and social sciences issn (e): 2832-8019 volume 7, | dec., 2022, pg: 5760 4. khojalepesov p.z., sarsenbaev i.e., madetova n.m. “achieved results of businesses in uzbekistan in exporting their products” european international journal of multidisciplinary research and management studies ejjmrms, issn: 2750-8587, volume 03, issue 01, pg: 33-37. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 193 www.americanjournal.org governance models for successful public-private partnerships in rural sustainability projects mrs. nnabugwu obiageli chinwe 1 udochukwu precious nwakodo 2 1department of entrepreneurship studies, university of nnamdi azikiwe awka 2department of public administration, abia state polytechnic, aba, abia state correspondence email: preshy1973@gmail.com a b s t r a c t k e y w o r d s public-private partnerships (ppps) have emerged as a promising approach to addressing the complex challenges of sustainable development in rural areas. however, the success of these partnerships’ hinges on the establishment of effective governance models that facilitate collaboration, transparency, and accountability among diverse stakeholders. this paper examines the key elements of robust governance frameworks for rural sustainability ppps, including clearly defined roles and responsibilities, mechanisms for transparency and information sharing, capacity building and stakeholder engagement, and comprehensive risk management and conflict resolution strategies. the paper explores the contextual factors, resource constraints, and policy and regulatory environments that influence the design and implementation of governance models in rural settings. it highlights the importance of tailoring governance structures to the unique geographic, socio-economic, cultural, and institutional dynamics of rural communities. additionally, the paper discusses best practices and recommendations for effective governance, such as promoting publicprivate-community partnerships, leveraging technology and digital tools, and fostering cross-sector collaboration and knowledge sharing. by adopting comprehensive governance models that address the specific challenges and opportunities of rural sustainability projects, ppps can unlock their full potential to drive transformative economic, social, and environmental impacts. governance models, public-private partnerships, rural sustainability, and projects introduction public-private partnerships (ppps) are collaborative arrangements between public sector entities (government agencies or authorities) and private sector companies or organizations (world bank, 2022). in ppps, both parties come together to undertake a project or provide a service that traditionally would have been solely within the purview of the public sector (hodge & greve, 2017). these partnerships involve a sharing of resources, risks, responsibilities, and rewards between the public american journal of business management, economics and banking volume 23 april 2024 p a g e | 194 www.americanjournal.org and private sectors (kwak et al., 2009). ppps typically involve long-term contracts and can encompass various sectors such as infrastructure development (e.g., transportation, energy, water), social services (e.g., healthcare, education), and environmental sustainability projects (roehrich et al., 2014). the primary goal of ppps is to leverage the strengths and expertise of both the public and private sectors to deliver projects or services more efficiently, effectively, and often at lower costs compared to traditional procurement methods (hodge & greve, 2007). ppps are widely used in various sectors, including transportation (roads, airports, and ports), healthcare, education, energy, water and sanitation, and urban development, among others (that et al., 2018). however, effective governance, risk management, and stakeholder engagement are crucial for the successful implementation and long-term sustainability of ppps (mouraviev & kakabadse, 2016). • efficient delivery of public services: ppps aim to leverage the private sector's expertise, technology, and efficient management practices to deliver public services or infrastructure more effectively and efficiently than traditional public sector procurement models. • risk sharing: ppps distribute risks and responsibilities between the public and private partners, with each party assuming the risks they are best equipped to manage. this risksharing mechanism can lead to better risk management and cost optimization. • access to private financing: ppps enable governments to access private sector financing and resources for public projects, reducing the burden on public budgets and allowing for faster implementation of projects. • innovation and technology transfer: private partners often bring innovative approaches, advanced technologies, and specialized expertise to ppps, which can lead to improved service delivery, cost savings, and the transfer of knowledge and skills to the public sector. • long-term sustainability: ppps are typically long-term arrangements, ranging from several years to decades, which can promote sustainable and consistent service delivery over an extended period. ppps can take various forms, including: • build-operate-transfer (bot): the private partner finances, constructs, and operates a public facility or infrastructure for a concession period, after which ownership is transferred to the public sector. • design-build-finance-operate (dbfo): the private partner designs, finances, constructs, and operates a public facility or infrastructure for a specified period before transferring ownership to the public sector. • concession agreements: the government grants a concession to a private entity to finance, construct, operate, and maintain a public asset or service for a specified period, during which the private partner can collect user fees or charges. • joint ventures: the public and private sectors form a jointly owned entity to collaborate on the development, financing, and operation of a project or service. public-private partnerships (ppps) have emerged as a powerful approach to address the challenges of sustainable development in rural areas. these partnerships bring together the resources, expertise, and capabilities of the public sector, private organizations, and often local communities, to tackle complex issues related to environmental conservation, economic development, and social inclusion. american journal of business management, economics and banking volume 23 april 2024 p a g e | 195 www.americanjournal.org in the context of rural sustainability projects, ppps have been instrumental in various domains, such as: • renewable energy and energy access: ppps have facilitated the deployment of renewable energy solutions, such as solar, wind, and biomass, in remote rural areas. these partnerships leverage private sector financing and technological expertise to provide clean energy access to underserved communities, while contributing to environmental sustainability goals. • water and sanitation infrastructure: ppps have played a crucial role in developing and maintaining water supply and sanitation facilities in rural regions. private sector involvement has brought in much-needed investment, efficient management practices, and innovative technologies to ensure reliable access to clean water and proper sanitation services. • agricultural development and food security: ppps have enabled the transfer of agricultural best practices, modern farming techniques, and market linkages to rural farming communities. private companies, non-profit organizations, and research institutions have collaborated with government agencies and local communities to enhance agricultural productivity, improve food security, and promote sustainable farming methods. • rural infrastructure and connectivity: ppps have facilitated the development of rural infrastructure, such as roads, bridges, and telecommunications networks. these partnerships have attracted private sector financing and expertise to improve connectivity and access to essential services in remote areas, supporting economic growth and social development. • eco-tourism and natural resource management: ppps have been instrumental in promoting sustainable eco-tourism initiatives and conserving natural resources in rural areas. private sector partners, including tour operators, conservation organizations, and local communities, have worked together to develop eco-friendly tourism models, generate sustainable livelihoods, and protect biodiversity. despite the potential benefits, implementing ppps in rural sustainability projects presents unique challenges, such as limited infrastructure, remote locations, capacity constraints, and the need for inclusive community engagement. effective governance models that ensure transparency, accountability, and equitable distribution of benefits are crucial for the success of these partnerships. by leveraging the strengths and resources of the public and private sectors, as well as local communities, ppps have the potential to drive sustainable development, create economic opportunities, and improve the quality of life in rural areas while promoting environmental stewardship. effective governance is pivotal for the success of rural sustainability projects, particularly those involving public-private partnerships (ppps). strong governance frameworks ensure accountability, transparency, and the equitable distribution of benefits, ultimately contributing to the long-term sustainability and impact of these initiatives. by establishing robust governance frameworks, rural sustainability projects can navigate complex challenges, leverage the strengths of diverse stakeholders, and create lasting positive impacts on the economic, social, and environmental dimensions of sustainable development in rural areas. here are some key reasons why governance is crucial in rural sustainability projects: • stakeholder engagement and community participation: rural sustainability projects often involve diverse stakeholders, including local communities, government agencies, private organizations, and civil society groups. robust governance mechanisms facilitate meaningful american journal of business management, economics and banking volume 23 april 2024 p a g e | 196 www.americanjournal.org engagement and participation of all stakeholders, ensuring that their voices are heard and their interests are represented in decision-making processes. this inclusive approach fosters ownership, trust, and buy-in, which are essential for the successful implementation and sustainable impact of projects. • transparent and accountable resource allocation: rural sustainability projects frequently involve the allocation of resources, such as funding, land, or natural resources. effective governance frameworks promote transparency and accountability in resource allocation, mitigating potential conflicts, corruption, or misuse of resources. this transparency builds trust among stakeholders and ensures that resources are utilized efficiently and equitably for the intended purposes. • risk management and conflict resolution: rural sustainability projects often operate in complex environments with various risks, such as environmental challenges, social tensions, or political instability. robust governance models incorporate mechanisms for identifying, assessing, and mitigating risks, as well as resolving conflicts that may arise among stakeholders. this proactive approach helps to anticipate and address potential issues, ensuring the smooth execution and long-term viability of projects. • monitoring and evaluation: governance frameworks establish clear protocols for monitoring and evaluating the progress and impact of rural sustainability projects. regular monitoring allows for timely course corrections and adaptations, while evaluation ensures that projects are achieving their intended objectives and delivering sustainable benefits to the target communities. this continuous improvement cycle is essential for maximizing the effectiveness and longevity of these initiatives. • capacity building and knowledge transfer: effective governance models prioritize capacity building and knowledge transfer among stakeholders, particularly local communities. by fostering skill development, knowledge sharing, and collaborative learning, governance frameworks empower communities to actively participate in and sustain the outcomes of rural sustainability projects, ensuring their long-term ownership and self-reliance. • policy alignment and regulatory compliance: rural sustainability projects often operate within broader policy and regulatory frameworks at local, national, and international levels. strong governance ensures that projects are aligned with relevant policies and comply with applicable regulations, promoting harmonization and avoiding potential conflicts or legal challenges. traditional governance models traditional governance models refer to established structures and processes through which decisions are made, policies are formulated, and resources are allocated within a society or organization. these models have evolved over time and vary significantly across different political, cultural, and historical contexts. these traditional governance models have shaped the political systems and institutions of many societies throughout history, influencing the distribution of power, the protection of rights, and the dynamics of governance. however, contemporary governance frameworks often blend elements of these traditional models with modern principles of democracy, rule of law, and human rights protection. both the top-down and bottom-up approaches have their merits and limitations, and effective governance models often require a balanced combination or hybrid approach that leverages the strengths of both while mitigating their weaknesses american journal of business management, economics and banking volume 23 april 2024 p a g e | 197 www.americanjournal.org top-down approach: a top-down approach is a hierarchical method of decision-making and management where directives, policies, and strategies are formulated at the highest level of authority and then cascaded down to lower levels for implementation. in this approach, decisions originate from senior leadership or centralized governing bodies and are communicated to subordinate levels within an organization or government. key characteristics of a top-down approach include: • centralized decision-making: in the traditional top-down governance model, decisionmaking authority is centralized within government agencies or higher-level authorities. decisions related to rural sustainability projects are made at the top level, often with limited input or consultation from local communities or stakeholders on the ground. this approach is characterized by a hierarchical structure, where plans and directives flow from the top down to the implementers and beneficiaries. limitations and challenges: the top-down approach faces several limitations and challenges in the context of rural sustainability projects: • lack of local context and knowledge: centralized decision-makers may lack a deep understanding of the local context, including cultural norms, socio-economic dynamics, and specific needs of rural communities. • limited community ownership and buy-in: imposing decisions from the top down can lead to a lack of community ownership and engagement, as local stakeholders may feel disconnected from the decision-making process. • inflexibility and slow adaptation: top-down models can be rigid and slow to adapt to changing local conditions or emerging challenges, hindering the ability to respond effectively to dynamic situations. • potential for misalignment with local priorities: centralized decision-making may prioritize national or regional objectives that do not necessarily align with the specific needs and aspirations of rural communities. bottom-up approach community-driven initiatives: in contrast to the top-down model, the bottom-up approach emphasizes community-driven initiatives and grassroots participation. decisions related to rural sustainability projects are made at the local level, involving direct input and decision-making from community members, local organizations, and on-the-ground stakeholders. this approach aims to empower communities and leverage their knowledge, resources, and collective action. strengths and weaknesses: the bottom-up approach has several strengths but also faces certain weaknesses: strengths: • local knowledge and context integration: community members have a deep understanding of their local context, challenges, and opportunities, which can inform more relevant and suitable solutions. • increased ownership and sustainability: when communities are actively involved in decisionmaking and implementation, they are more likely to take ownership and ensure the long-term sustainability of projects. american journal of business management, economics and banking volume 23 april 2024 p a g e | 198 www.americanjournal.org • responsiveness to local needs: bottom-up initiatives are better positioned to address the specific needs and priorities of rural communities, as they are directly involved in the process. • capacity building and empowerment: the bottom-up approach fosters capacity building and empowerment within communities, enabling them to develop skills and self-reliance. weaknesses: • limited resources and technical expertise: rural communities may lack access to adequate financial resources, technical expertise, or specialized knowledge required for complex sustainability projects. • potential for conflicting interests: within communities, there may be diverse interests, priorities, and power dynamics that can lead to conflicts or stagnation in decision-making processes. • scalability and coordination challenges: coordinating and scaling up multiple communitydriven initiatives across a broader region or national level can be challenging, potentially leading to fragmentation or duplication of efforts. • integration with broader policy frameworks: aligning community-driven initiatives with national or regional policy frameworks and regulations can be difficult, potentially hindering their effectiveness or legal compliance. emerging governance models as the complexities and challenges of rural sustainability projects continue to evolve, traditional topdown and bottom-up governance models have shown limitations in addressing the intricate dynamics involved. in response, emerging governance models have gained traction, aiming to leverage the strengths of diverse stakeholders while fostering flexibility, inclusivity, and continuous learning. these emerging models include collaborative governance and adaptive governance, which offer promising approaches to navigate the intricacies of public-private partnerships in rural sustainability initiatives. collaborative governance multi-stakeholder engagement: collaborative governance is a model that emphasizes the active involvement and participation of multiple stakeholders in decision-making processes (ansell & gash, 2008). this approach recognizes that rural sustainability projects often involve a diverse range of actors, including government agencies, private sector organizations, non-governmental organizations (ngos), community groups, and local residents. by bringing these stakeholders together in a collaborative forum, diverse perspectives, knowledge, and expertise can be leveraged to develop more comprehensive and inclusive solutions (emerson et al., 2012). multi-stakeholder engagement fosters a sense of shared ownership, increases transparency, and enhances the legitimacy of decisions made. shared decision-making and accountability: in collaborative governance models, decision-making authority and accountability are shared among the stakeholders involved (purdy, 2012). rather than a top-down or bottom-up approach, decisions are made through consensus-building processes, where stakeholders collectively identify priorities, weigh trade-offs, and arrive at mutually agreeable solutions. this shared decision-making process promotes a sense of joint responsibility and american journal of business management, economics and banking volume 23 april 2024 p a g e | 199 www.americanjournal.org accountability, as stakeholders are invested in the outcomes and have a vested interest in the success of the project (emerson et al., 2012). collaborative governance also facilitates the pooling of resources and the distribution of risks and rewards among stakeholders, fostering a more equitable and sustainable approach. adaptive governance flexibility and responsiveness to changing conditions: adaptive governance is a model that acknowledges the dynamic and uncertain nature of rural sustainability projects (folke et al., 2005). it recognizes that these initiatives often operate in complex socio-ecological systems, where environmental, economic, and social conditions can change rapidly and unpredictably. adaptive governance embraces flexibility and promotes the ability to adjust and adapt governance structures, policies, and management strategies in response to changing circumstances (chaffin et al., 2014). this approach allows for iterative learning, experimentation, and course correction, enabling more responsive and context-specific solutions. learning and continuous improvement: a key tenet of adaptive governance is the emphasis on learning and continuous improvement (armitage et al., 2009). this model incorporates mechanisms for monitoring, evaluating, and reflecting on the outcomes and impacts of rural sustainability projects. through this process, stakeholders can identify successes, challenges, and areas for improvement, and adapt their strategies accordingly. adaptive governance encourages the integration of new knowledge, best practices, and emerging technologies, fostering a culture of ongoing learning and innovation (folke et al., 2005). this cyclical process of learning and adaptation enhances the resilience and long-term sustainability of projects, enabling them to evolve and remain relevant in the face of changing conditions. governance models for successful ppps in rural sustainability projects establishing robust governance models is pivotal for the success of public-private partnerships (ppps) in rural sustainability projects. these governance frameworks serve as the foundation for effective collaboration, risk management, and the equitable distribution of benefits among stakeholders. by incorporating key elements such as regulatory frameworks, institutional arrangements, and mechanisms for transparency and accountability, governance models can foster an enabling environment that maximizes the potential of ppps in driving sustainable development in rural areas. regulatory frameworks and legal structures role of government regulations: the government plays a critical role in establishing a conducive regulatory environment for ppps in rural sustainability projects. well-designed regulations can provide clarity, consistency, and predictability for both public and private sector partners (sabry, 2015). these regulations should address issues such as procurement processes, contract management, dispute resolution mechanisms, and environmental and social safeguards. additionally, aligning regulations with national and international sustainability goals can ensure that ppps contribute to broader sustainable development objectives (haščič et al., 2017). legal agreements and contracts: robust legal agreements and contracts are essential for defining the roles, responsibilities, and obligations of each partner in a ppp (charbit et al., 2017). these legal american journal of business management, economics and banking volume 23 april 2024 p a g e | 200 www.americanjournal.org instruments should clearly outline the scope of the project, risk allocation, performance standards, payment mechanisms, and dispute resolution procedures. well-crafted contracts can help mitigate potential conflicts, ensure fair risk-sharing, and provide a clear framework for project implementation and monitoring (wiguna & scott, 2006). institutional arrangements and stakeholder engagement involvement of local communities: effective governance models for rural sustainability ppps must prioritize the involvement and participation of local communities (newig & fritsch, 2009). these communities possess valuable knowledge, insights, and cultural perspectives that can inform project design and implementation. inclusive stakeholder engagement processes, such as consultations, workshops, and community advisory committees, can foster a sense of ownership, increase transparency, and ensure that projects align with local priorities and needs (hueskes et al., 2017). collaboration between public and private entities: ppps require close collaboration and coordination between public sector agencies and private sector organizations. establishing clear institutional arrangements and communication channels is crucial for effective governance (koppenjan & enserink, 2009). this may involve creating dedicated ppp units within government agencies, forming joint project management teams, or establishing advisory boards with representation from both sectors. effective collaboration can facilitate knowledge sharing, leverage complementary strengths, and ensure alignment with broader policy objectives (brinkerhoff & brinkerhoff, 2011). transparency, accountability, and risk management transparent decision-making processes: transparency is a fundamental principle of good governance in ppps for rural sustainability projects. transparent decision-making processes foster trust and accountability among stakeholders (grimsey & lewis, 2004). this can be achieved through measures such as public disclosure of project information, open bidding processes, and regular reporting mechanisms. additionally, establishing clear criteria for project selection, evaluation, and monitoring can enhance transparency and ensure that decisions are made objectively and fairly (hodges & dellacha, 2007). mechanisms for accountability and risk allocation: effective governance models should incorporate mechanisms for accountability and risk allocation among ppp partners (ng & loosemore, 2007). this may include performance monitoring systems, auditing procedures, and grievance redressal mechanisms for stakeholders. clear accountability measures can help ensure that partners fulfill their obligations and responsibilities. additionally, a well-defined risk allocation framework can distribute risks appropriately among partners based on their respective capabilities to manage and mitigate those risks (carbonara et al., 2009). key elements of effective governance models effective governance models are paramount for the successful implementation and long-term sustainability of public-private partnerships (ppps) in rural sustainability projects. these models american journal of business management, economics and banking volume 23 april 2024 p a g e | 201 www.americanjournal.org encompass a comprehensive set of elements that facilitate collaboration, accountability, and the alignment of diverse stakeholder interests. by incorporating clearly defined roles and responsibilities, promoting transparency and information sharing, fostering capacity building and stakeholder engagement, and establishing robust risk management and conflict resolution mechanisms, governance models can create an enabling environment for ppps to thrive and deliver lasting positive impacts. clearly defined roles and responsibilities delineation of public and private sector roles: effective governance models should clearly delineate the roles and responsibilities of the public and private sector partners involved in rural sustainability ppps (hodge & greve, 2007). this clarity helps to avoid overlaps, gaps, or conflicts in areas of responsibility, ensuring efficient project implementation and service delivery. the public sector's role may include setting policies, regulations, and performance standards, while the private sector may be responsible for financing, construction, operations, and maintenance (koppenjan & enserink, 2009). accountability mechanisms: robust accountability mechanisms are essential for ensuring that partners fulfill their respective roles and responsibilities (forrer et al., 2010). this can be achieved through performance monitoring systems, auditing procedures, and reporting requirements. governance models should clearly outline performance indicators, evaluation criteria, and consequences for non-compliance. establishing clear lines of accountability fosters trust among stakeholders and promotes the efficient use of resources (benner et al., 2004). transparency and information sharing open communication channels: effective governance models facilitate open communication channels among all stakeholders involved in rural sustainability ppps (kivleniece & quelin, 2012). regular communication and information sharing help to build trust, foster collaboration, and ensure that all parties are aware of project progress, challenges, and decisions. this can be facilitated through regular meetings, progress reports, and online platforms for information sharing. data accessibility and reporting: transparency in ppps is crucial for maintaining public trust and ensuring accountability (grimsey & lewis, 2004). governance models should promote data accessibility and regular reporting on project performance, financials, and environmental and social impacts. this information should be made available to all stakeholders, including local communities, through various channels such as public hearings, websites, and annual reports. capacity building and stakeholder engagement training and skill development: effective governance models recognize the importance of capacity building for successful ppps in rural sustainability projects (brinkerhoff & brinkerhoff, 2011). this includes providing training and skill development opportunities for both public and private sector partners, as well as local communities. training programs can focus on areas such as project management, financial analysis, environmental and social impact assessment, and community engagement. american journal of business management, economics and banking volume 23 april 2024 p a g e | 202 www.americanjournal.org inclusive participation and community involvement: governance models should prioritize inclusive participation and community involvement throughout the project lifecycle (newig & fritsch, 2009). this can be achieved through consultations, workshops, and the formation of community advisory committees. involving local communities not only ensures that projects align with their needs and priorities but also fosters a sense of ownership and increases the likelihood of long-term sustainability (hueskes et al., 2017). risk management and conflict resolution identifying and mitigating potential risks: effective governance models incorporate comprehensive risk management strategies to identify, assess, and mitigate potential risks associated with rural sustainability ppps (ng & loosemore, 2007). this includes risks related to finance, construction, operations, environmental impacts, and social considerations. risk allocation frameworks should distribute risks appropriately among partners based on their respective capabilities to manage and mitigate those risks (carbonara et al., 2009). mechanisms for conflict resolution and grievance redressal: conflicts and disputes are bound to arise in complex ppp projects, and governance models should establish mechanisms for their timely resolution (ke et al., 2010). this can include provisions for alternative dispute resolution methods, such as mediation or arbitration, as well as grievance redressal mechanisms for stakeholders to raise concerns and seek resolution. clear conflict resolution processes can help prevent escalation, minimize disruptions, and maintain positive working relationships among partners. challenges and considerations while effective governance models offer a promising framework for successful public-private partnerships (ppps) in rural sustainability projects, their implementation is not without challenges and considerations. these challenges can stem from contextual factors, resource constraints, and the overarching policy and regulatory frameworks within which ppps operate. acknowledging and addressing these challenges is crucial for ensuring the long-term viability and impact of these partnership contextual factors the diverse geographic, socio-economic, cultural, and institutional contexts in which rural sustainability ppps are implemented can pose significant challenges for governance models. these contextual factors shape the unique dynamics, priorities, and stakeholder landscapes that must be navigated effectively. geographic and socio-economic conditions: rural areas often face unique geographic and socioeconomic conditions that can influence the design and implementation of ppps. remote locations, dispersed populations, and limited infrastructure can make service delivery and project management more complex. additionally, poverty, economic vulnerabilities, and limited access to resources in rural communities can impact the feasibility and sustainability of ppp initiatives. american journal of business management, economics and banking volume 23 april 2024 p a g e | 203 www.americanjournal.org cultural and institutional dynamics: cultural norms, traditional practices, and existing institutional structures can significantly influence the way governance models are perceived and adopted in rural communities. effective governance frameworks must be sensitive to these dynamics and foster a respectful integration of local knowledge and customs. failure to account for cultural and institutional factors can lead to resistance, mistrust, and ultimately, the failure of ppp initiatives. resource constraints despite the potential benefits of ppps, rural sustainability projects often face resource constraints that can challenge the implementation of effective governance models. these constraints can manifest in both financial limitations and gaps in human resource and technical capacity. financial limitations: rural areas frequently lack access to sufficient financial resources, which can hinder the ability to establish and maintain robust governance structures. limited financial resources can restrict the ability to hire skilled personnel, invest in capacity-building initiatives, or implement comprehensive monitoring and evaluation systems, all of which are essential components of effective governance. human resource and technical capacity: effective governance models require a skilled and knowledgeable workforce capable of managing complex ppp arrangements. however, rural areas may face shortages of personnel with the necessary expertise in areas such as project management, financial analysis, legal and regulatory compliance, and stakeholder engagement. this lack of human resource and technical capacity can undermine the successful implementation and oversight of governance frameworks. policy and regulatory frameworks the broader policy and regulatory environments within which rural sustainability ppps operate can either enable or constrain the effectiveness of governance models. supportive legal and regulatory frameworks are crucial for providing clarity, consistency, and predictability, while alignment with national and global sustainability goals can ensure that ppp initiatives contribute to broader sustainable development objectives. enabling legal and regulatory environments: a well-designed legal and regulatory framework is essential for creating an enabling environment for ppps. this framework should provide clear guidelines for procurement processes, contract management, dispute resolution mechanisms, and environmental and social safeguards. inconsistent or ambiguous regulations can lead to uncertainty, potential conflicts, and challenges in effectively implementing governance structures. alignment with national and global sustainability goals: governance models for rural sustainability ppps should be aligned with broader national and global sustainability goals, such as the united nations sustainable development goals (sdgs). this alignment ensures that ppp initiatives contribute to overarching objectives related to poverty alleviation, environmental protection, and inclusive economic growth. failure to integrate these broader sustainability american journal of business management, economics and banking volume 23 april 2024 p a g e | 204 www.americanjournal.org considerations can result in misaligned priorities and missed opportunities for holistic and transformative impact. recommendations and best practices to maximize the potential of ppps in driving sustainable development in rural areas, it is crucial to adopt a comprehensive set of recommendations and best practices that address the unique challenges and opportunities presented by these initiatives. by embracing tailored governance models, continuous monitoring and evaluation, multi-stakeholder partnerships, technology integration, and cross-sector collaboration, ppps can achieve lasting positive impacts and contribute to the overall resilience and well-being of rural communities. by embracing these recommendations and best practices, governance models for ppps in rural sustainability projects can increase their chances of success, enhance their long-term viability, and contribute to the achievement of sustainable development goals in rural areas. tailored governance models based on project scope and context: governance models for rural sustainability ppps should be tailored to the specific scope and context of each project. a one-sizefits-all approach is unlikely to be effective given the diverse geographic, socio-economic, cultural, and institutional dynamics that characterize rural areas. best practices include conducting comprehensive stakeholder analyses, risk assessments, and feasibility studies to inform the design of governance structures that are responsive to local needs and priorities. continuous monitoring and evaluation: effective governance models should incorporate robust monitoring and evaluation mechanisms to track progress, identify challenges, and enable timely course corrections. this can include establishing clear performance indicators, conducting regular audits, and engaging in participatory monitoring and evaluation processes that involve all stakeholders, including local communities. continuous monitoring and evaluation promote accountability, transparency, and the adaptive management of ppps, ensuring their long-term sustainability and impact. promoting public-private-community partnerships: while traditional ppps involve collaboration between public and private entities, governance models for rural sustainability projects should actively encourage the formation of public-private-community partnerships (ppcps). by incorporating local communities as equal partners, governance structures can better align with local priorities, leverage indigenous knowledge, and foster a sense of ownership and commitment. ppcps can also facilitate capacity-building efforts and ensure that benefits are equitably distributed among all stakeholders. leveraging technology and digital tools: embracing technology and digital tools can significantly enhance the effectiveness of governance models for rural sustainability ppps. this can include utilizing digital platforms for stakeholder communication, data sharing, and project monitoring. additionally, incorporating geospatial technologies, remote sensing, and data analytics can improve decision-making processes, resource allocation, and the tracking of environmental and social impacts. american journal of business management, economics and banking volume 23 april 2024 p a g e | 205 www.americanjournal.org however, it is crucial to ensure that technological solutions are accessible, user-friendly, and aligned with the local context and capacities. fostering cross-sector collaboration and knowledge sharing: governance models should facilitate cross-sector collaboration and knowledge sharing among ppp stakeholders, including government agencies, private companies, civil society organizations, academic institutions, and local communities. by creating platforms for dialogue, knowledge exchange, and joint learning, governance structures can promote the dissemination of best practices, foster innovation, and facilitate the replication and scaling of successful rural sustainability initiatives across different contexts. conclusion this paper has explored the critical role of governance models in ensuring the success of publicprivate partnerships (ppps) for rural sustainability projects. key elements discussed include clearly defined roles and responsibilities, transparency and information sharing, capacity building and stakeholder engagement, and robust risk management and conflict resolution mechanisms. additionally, challenges and considerations related to contextual factors, resource constraints, and policy and regulatory frameworks were examined. finally, recommendations and best practices were offered, emphasizing tailored governance models, continuous monitoring and evaluation, publicprivate-community partnerships, technology integration, and cross-sector collaboration. adopting effective governance models is crucial for harnessing the potential of ppps to drive sustainable development in rural areas. well-designed governance frameworks create an enabling environment for collaboration, accountability, and the equitable distribution of benefits among stakeholders. they foster trust, facilitate knowledge sharing, and ensure that ppp initiatives align with local priorities and national sustainability goals. by addressing the unique challenges faced by rural communities, effective governance models can unlock transformative economic, social, and environmental impacts, contributing to the overall resilience and well-being of these regions. as the global community strives to achieve the united nations sustainable development goals, it is imperative that all stakeholders involved in rural sustainability ppps prioritize the establishment of robust governance frameworks. governments, private sector entities, civil society organizations, and local communities must collaborate to design and implement governance models that are tailored to local contexts, inclusive, transparent, and adaptive. only through concerted efforts and a shared commitment to effective governance can we unlock the full potential of ppps and pave the way for a more sustainable and equitable future for rural areas worldwide. references 1. ansell, c., & gash, a. (2008). collaborative governance in theory and practice. journal of public administration research and theory, 18(4), 543-571. 2. armitage, d., plummer, r., berkes, f., arthur, r. i., charles, a. t., davidson-hunt, i. j., ... & wollenberg, e. k. (2009). adaptive co-management for social-ecological complexity. frontiers in ecology and the environment, 7(2), 95-102. american journal of business management, economics and banking volume 23 april 2024 p a g e | 206 www.americanjournal.org 3. benner, m. j., tushman, m. l., & lakhani, k. r. (2004). exploitation, exploration, and process management: the productivity dilemma revisited. academy of management review, 28(2), 238256. 4. brinkerhoff, d. w., & brinkerhoff, j. m. (2011). public-private partnerships: perspectives on purposes, publicness, and good governance. public administration and development, 31(1), 214. 5. brinkerhoff, d. w., & brinkerhoff, j. m. (2011). public-private partnerships: perspectives on purposes, publicness, and good governance. public administration and development, 31(1), 214. 6. carbonara, n., costantino, n., & pellegrino, r. (2009). risk management in motorway ppp projects: empirical-based values for the cost estimate at public works tender. organization, technology and management in construction: an international journal, 1(1), 30-39. 7. carbonara, n., costantino, n., & pellegrino, r. (2009). risk management in motorway ppp projects: empirical-based values for the cost estimate at public works tender. organization, technology and management in construction: an international journal, 1(1), 30-39. 8. chaffin, b. c., gosnell, h., & cosens, b. a. (2014). a decade of adaptive governance scholarship: synthesis and future directions. ecology and society, 19(3). 9. charbit, c., michalun, m., & öhman, m. (2017). overcoming challenges to further enhance governance of ppp projects. in proceedings of the 2017 oecd global parliamentary network meeting. oecd. 10. emerson, k., nabatchi, t., & balogh, s. (2012). an integrative framework for collaborative governance. journal of public administration research and theory, 22(1), 1-29. 11. folke, c., hahn, t., olsson, p., & norberg, j. (2005). adaptive governance of social-ecological systems. annual review of environment and resources, 30, 441-473. 12. forrer, j., kee, j. e., newcomer, k. e., & boyer, e. (2010). public-private partnerships and the public accountability question. public administration review, 70(3), 475-484. 13. grimsey, d., & lewis, m. k. (2004). public private partnerships: the worldwide revolution in infrastructure provision and project finance. edward elgar publishing. 14. grimsey, d., & lewis, m. k. (2004). public private partnerships: the worldwide revolution in infrastructure provision and project finance. edward elgar publishing. 15. haščič, i., cárdenas rodríguez, m., jachnik, r., silva, j., & bonnet, g. (2017). public interventions and private climate finance flows: empirical evidence from renewable energy financing. oecd environment working papers, no. 128, oecd publishing, paris. 16. hodge, g. a., & greve, c. (2007). public–private partnerships: an international performance review. public administration review, 67(3), 545-558. 17. hodge, g. a., & greve, c. (2007). public–private partnerships: an international performance review. public administration review, 67(3), 545-558. 18. hodge, g. a., & greve, c. (2017). on public–private partnership performance: a contemporary review. public works management & policy, 22(1), 55-78. 19. hodges, j. t., & dellacha, g. (2007). unsolicited infrastructure proposals: how some countries introduce competition and transparency. working paper no. 1, ppiaf, world bank, washington, dc. 20. hueskes, m., verhoest, k., & blokand-potters, t. (2017). public-private partnerships for sustainable development: exploring their design and its impact on local governance. public administration and development, 37(2), 102-115. american journal of business management, economics and banking volume 23 april 2024 p a g e | 207 www.americanjournal.org 21. hueskes, m., verhoest, k., & blokand-potters, t. (2017). public-private partnerships for sustainable development: exploring their design and its impact on local governance. public administration and development, 37(2), 102-115. 22. ke, y., wang, s., chan, a. p., & lam, p. t. (2010). preferred risk allocation in china's public– private partnership (ppp) projects. international journal of project management, 28(5), 482-492. 23. kivleniece, i., & quelin, b. v. (2012). creating and capturing value in public-private ties: a private actor's perspective. academy of management review, 37(2), 272-299. 24. koppenjan, j. f. m., & enserink, b. (2009). public-private partnerships in urban infrastructures: reconciling private sector participation and sustainability. public administration review, 69(2), 284-296. 25. koppenjan, j. f. m., & enserink, b. (2009). public-private partnerships in urban infrastructures: reconciling private sector participation and sustainability. public administration review, 69(2), 284-296. 26. kwak, y. h., chih, y., & ibbs, c. w. (2009). towards a comprehensive understanding of public private partnerships for infrastructure development. california management review, 51(2), 5178. 27. mikić, m. 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(2012). a framework for assessing power in collaborative governance processes. public administration review, 72(3), 409-417. 33. roehrich, j. k., lewis, m. a., & george, g. (2014). are public–private partnerships a healthy option? a systematic literature review. social science & medicine, 113, 110-119. 34. sabry, m. (2015). good governance, institutions and performance of public private partnerships. international journal of public sector performance management, 2(1), 1-19. 35. that, n. h., pham, n. a., & tran, d. t. (2018). public-private partnership in sustainable development of urban areas in vietnam. international journal of construction management, 18(5), 399-409. 36. wiguna, i. p. a., & scott, s. (2006). relating risk allocation to project value for money in ppp projects. international journal of project management, 24(1), 25-36. 37. world bank. (2022). public-private partnerships. https://www.worldbank.org/en/topic/publicprivatepartnerships https://www.unescap.org/blog/public-private-partnerships-definition-benefits-and-challenges https://www.worldbank.org/en/topic/publicprivatepartnerships american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 26 www.americanjournal.org the role of artificial intelligence in driving sustainable development kahramonova nasiba tashkent state university of economics tashkent, uzbekistan a b s t r a c t k e y w o r d s artificial intelligence (ai) has emerged as a transformative force in addressing global challenges, particularly in achieving the united nations sustainable development goals (sdgs). by automating processes, enhancing efficiency, and enabling data-driven decisionmaking, ai is redefining how societies manage environmental, economic, and social systems. this article explores the multifaceted role of ai in driving sustainable development, including its applications in climate change mitigation, resource optimization, health care, and education. it also examines the challenges associated with integrating ai into sustainability strategies, such as ethical concerns, data privacy, and the digital divide. the study underscores the need for collaborative efforts among governments, industries, and researchers to harness ai responsibly for a sustainable future. artificial intelligence, sustainable development goals, climate change, healthcare, education, resource optimization, ethics, digital transformation, environmental sustainability.. introduction sustainable development has emerged as a global priority in the 21st century, with the united nations sustainable development goals (sdgs) providing a comprehensive framework for addressing issues such as poverty, inequality, climate change, and environmental degradation. achieving these goals requires innovative approaches and cutting-edge technologies, among which artificial intelligence (ai) stands out as a key enabler. ai's ability to process vast amounts of data, generate insights, and automate complex tasks makes it uniquely positioned to address the multifaceted challenges of sustainable development ([1]). ai has demonstrated its potential to revolutionize industries by improving efficiency, reducing resource consumption, and minimizing environmental impact. for example, ai-powered predictive analytics have enabled smarter energy grids, reducing waste and promoting renewable energy integration ([2]). similarly, ai-driven precision agriculture has increased crop yields while minimizing the use of water, fertilizers, and pesticides ([3]). despite its transformative potential, the integration of ai into sustainable development efforts is not without challenges. ethical concerns, data privacy issues, and the digital divide threaten to exacerbate inequalities if not properly managed. this article examines the role of ai in sustainable development, focusing on its applications, benefits, and challenges. it also discusses the policy and ethical american journal of business management, economics and banking volume 31 december 2024 p a g e | 27 www.americanjournal.org considerations necessary for ensuring that ai technologies contribute to a more equitable and sustainable future. main part 1. applications of ai in sustainable development 1.1 healthcare ai has proven to be a game-changer in healthcare, offering solutions that improve diagnostics, treatment, and resource allocation. machine learning algorithms can analyze medical images to detect diseases like cancer at an early stage, significantly improving patient outcomes ([4]). ai-driven telemedicine platforms have expanded access to healthcare services in remote and underserved areas, reducing disparities in healthcare delivery ([5]). in the context of global health crises, such as the covid-19 pandemic, ai has been instrumental in tracking disease spread, predicting outbreaks, and optimizing vaccine distribution ([6]). these applications directly contribute to sdg 3, which focuses on ensuring healthy lives and promoting wellbeing for all. 1.2 agriculture agriculture is a critical sector for achieving food security (sdg 2) while minimizing environmental impact. ai-powered precision agriculture techniques, such as drone-based monitoring and predictive weather analytics, have enabled farmers to optimize resource use and improve crop yields ([7]). for instance, ai systems can analyze soil health and recommend specific fertilizers, reducing chemical runoff and preserving biodiversity. moreover, ai can help mitigate the impact of climate change on agriculture by predicting extreme weather events and advising on adaptive strategies ([8]). 1.3 energy and climate action the energy sector has benefited immensely from ai's capabilities in optimizing resource allocation and integrating renewable energy sources. smart grids powered by ai can balance electricity supply and demand, reducing energy waste and enhancing grid reliability ([9]). ai-driven algorithms also play a pivotal role in climate modeling, helping scientists predict climate patterns and assess the impact of mitigation strategies. for example, ai has been used to analyze satellite imagery to track deforestation and monitor carbon emissions, contributing to sdg 13 (climate action) ([10]). 1.4 urban planning and smart cities urbanization presents both challenges and opportunities for sustainable development. ai technologies have enabled the development of smart cities, where data from sensors and iot devices are used to improve urban services such as transportation, waste management, and energy efficiency ([11]). for example, ai-powered traffic management systems can reduce congestion and lower greenhouse gas emissions by optimizing traffic flow. similarly, ai-driven waste sorting systems have improved recycling rates, reducing the environmental footprint of urban areas ([12]). american journal of business management, economics and banking volume 31 december 2024 p a g e | 28 www.americanjournal.org 2. benefits of ai in sustainable development ai's contributions to sustainable development are multifaceted: improved efficiency: ai automates repetitive tasks and optimizes processes, reducing resource consumption and operational costs. enhanced decision-making: ai-powered analytics provide actionable insights, enabling informed decision-making in areas such as disaster management and resource allocation ([13]). increased accessibility: ai technologies, such as natural language processing and translation tools, have made education and healthcare services more accessible globally ([14]). 3. challenges in leveraging ai for sustainability 3.1 ethical and privacy concerns the use of ai raises ethical questions, particularly regarding data privacy, algorithmic bias, and accountability. for instance, biased ai models can perpetuate existing inequalities, undermining efforts to achieve inclusive development ([15]). 3.2 digital divide access to ai technologies is unevenly distributed, with developing countries often lacking the infrastructure and expertise needed to implement ai solutions. bridging this digital divide is essential for ensuring that ai benefits are equitably shared ([16]). 3.3 energy consumption of ai models ironically, the computational power required to train large ai models consumes significant energy, contributing to carbon emissions. developing energy-efficient ai algorithms is crucial for aligning ai advancements with sustainability goals ([17]). 4. policy recommendations and future directions policymakers play a vital role in ensuring that ai is harnessed for sustainable development. key recommendations include: promoting open data initiatives: encouraging data sharing across sectors to maximize the utility of ai models. investing in education and capacity building: equipping individuals with the skills needed to develop and use ai responsibly. establishing ethical guidelines: developing frameworks to address ethical issues and ensure transparency in ai applications ([18]). encouraging public-private partnerships: collaborating with the private sector to scale ai solutions for sustainable development. conclusion artificial intelligence has the potential to revolutionize sustainable development by offering innovative solutions to complex global challenges. from improving healthcare and agriculture to promoting renewable energy and smart cities, ai's applications are vast and impactful. however, realizing this potential requires addressing ethical concerns, bridging the digital divide, and ensuring equitable access american journal of business management, economics and banking volume 31 december 2024 p a g e | 29 www.americanjournal.org to ai technologies. by fostering collaboration between governments, businesses, and academia, we can leverage ai to create a more sustainable and inclusive future for all. references 1. united nations. 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"climate change adaptation in crop production: bridging the gap between potential and reality." annual review of environment and resources. 9. gellings, c. w. (2009). "the smart grid: enabling energy efficiency and demand response." crc press. 10. bonavita, m., et al. (2021). "ai applications in climate action: a review." climatic change. 11. anthopoulos, l. (2017). "understanding smart cities: a tool for smart government or an industrial trick?" springer. 12. zhang, x., et al. (2021). "ai-powered solutions for waste management in urban areas." sustainable cities and society. 13. varshney, k. r., & alemzadeh, h. (2017). "on the safety of machine learning: cyber-physical systems, decision sciences, and data products." big data. 14. brynjolfsson, e., & mcafee, a. (2017). "the second machine age: work, progress, and prosperity in a time of brilliant technologies." 15. crawford, k. (2021). "atlas of ai: power, politics, and the planetary costs of artificial intelligence." yale university press. 16. perez, c. c. (2019). "the digital divide and ai inequality." harvard business review. 17. strubell, e., ganesh, a., & mccallum, a. (2019). "energy and policy considerations for deep learning in nlp." acl 2019. 18. jobin, a., ienca, m., & vayena, e. (2019). "the global landscape of ai ethics guidelines." nature machine intelligence. 19. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392. american journal of business management, economics and banking volume 31 december 2024 p a g e | 30 www.americanjournal.org 20. абдуллаев, а. к. (2023). роль транспортной дипломатии в развитии внешнеторговых маршрутов республики узбекистан. постсоветские исследования, 6(3), 315-323. 21. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 22. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 23. abdullaev, a. (2017). transport aspect of cooperation within sco. international relations: politics, economics, law, 2017(2), 11. 24. abdullaev, a. k. the peculiarities of the use of the special lexis. тошкент2021, 23. 25. палванова, у. б. (2024). значение формирования навыков оказания первой помощи у студентов в не медицинских образовательных учреждениях. periodica journal of modern philosophy, social sciences and humanities, 27, 93-98. 26. рашидов, в. а., & хацкая, с. в. (2024). влияние нефтяного техногенного загрязнения на заболеваемость населения. journal of new century innovations, 50(1), 118-123. 27. rashidov, v., wook, j., & kim, k. h. (2023). evaluation of the effectiveness of the work of the sanitary-epidemiological welfare and public health service of the almazar district of tashkent during the covid-19 pandemic (" european journal of molecular & clinical medicineeuropean journal of molecular & clinical medicine"). 28. akmaldjanovich, r. v. (2022, december). iqlim oʼzgаrishining inson sаlomаtligigа tаʼsiri. in proceedings of international conference on modern science and scientific studies (vol. 1, no. 3, pp. 161-163). american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 23 www.americanjournal.org use of public private partnership in the implementation of public poverty reduction programs mirzakhalikov bobir bakhtiyorovich namangan engineering and technology institute, acting associate professor, phd, department of "accounting and auditing" tel.: +99894-152-81-88. bmirzahalikov@gmail.com a b s t r a c t k e y w o r d s the article reveals the possibilities and problems of using publicprivate partnerships in the implementation of state programs to reduce poverty. in the implementation of state programs to reduce poverty, problems are associated, first of all, with the lack of financial resources of public funds. today, cooperation between the public and private sectors forms an effective mechanism for attracting investments aimed at ensuring economic growth and reducing poverty. state budget, state programs, public-private partnership, tax mechanism, initiative budget, sources of financing, poverty, entrepreneurship, small business, public policy, economic growth, financial policy, social benefits, financial assistance, social policy, poverty line, human wellbeing, development strategy. introduction the steady growth of the population and the problem of poverty in uzbekistan require the use of publicprivate partnerships and financial market instruments in the implementation of state programs. at a time when new economic relations are gradually taking shape in the modern national economy and are gradually becoming integrated into the global community, there is a need for structural changes and closer cooperation between the state and private sectors. a new, effective structure such as public-private partnerships (ppps) plays a key role and is one of the main directions for attracting private capital to various sectors of the economy. public and private business the growing interest in this mutual cooperation between the public and private sectors in many countries allows to effectively solve major social and economic problems by combining the resources of the public and private sectors. is explained by giving. research methods (methods) the article uses the methods of analysis, synthesis, induction and deduction, abstract-logical analysis, econometric models, comparison, correlation and regression, and economic and financial analysis. american journal of business management, economics and banking volume 34 march 2025 p a g e | 24 www.americanjournal.org results poverty reduction requires improving the living standards of the population, providing comfortable living conditions, and providing food products at affordable prices, which in turn is explained by the need to find solutions to environmental problems. according to the ministry of water resources of the republic of uzbekistan, “by 2030, uzbekistan will lack 7 billion cubic meters of water” [1]. according to forecasts by the german analytical statistics company statista, by 2040, 44 countries around the world will experience extremely high levels of water scarcity[2], including central asian countries. in solving the problem of poverty, the lack of financial resources and, through them, water shortages are creating problematic situations in the agricultural sector, resulting in the import of meat, potatoes, oil products, sugar products, regularly increasing, avoiding energy collapses, demand to accelerate the process of transition to a green economy in our country and to find ways to attract additional financial resources. a "green" economy, unlike an economy based on the consumption of natural resources, allows for short-term growth in gross domestic product, per capita employment, and income at the same or higher rates than a resource-based economy. in the long term, it can improve the state of the natural environment and reduce social inequality. the problems of social protection, poverty reduction, environmental protection, and the implementation of ecological projects are primarily related to the lack of financial resources of both state funds and private business. today, public-private partnership forms an effective mechanism for attracting investments aimed at social protection, poverty reduction, and ensuring "green" economic growth. in addition, three main sectors have the largest share in the implementation of public-private partnership (ppp) projects aimed at "green" economic growth: drinking water supply and sanitation, solid waste management, and renewable energy. world bank entities are providing financial assistance for investment projects in these areas around the world. the public-private partnership mechanism appeared at the intersection of state and business interests in solving the problems of dynamic socio-economic development of regions, and from budget funds increasing the effectiveness of increasing the quality and volume of public sector services by using and attracting investments from extra-budgetary funds. the number of countries around the world that have adopted public-private partnership mechanisms and tools for the development of public infrastructure and the provision of socially important services is increasing. the use of financial resources from public-private partnerships (ppps) increases the opportunities for the implementation of projects identified in state programs, which in turn leads to a reduction in poverty among the population through the creation of new jobs. discussion the state, while carrying out its functions, is interested in rational use of resources and improving the quality of life of the population. however, neither the public sector nor private business often have sufficient financial resources to implement such projects. based on the mechanism of public-private partnership (ppp), the state and pooling resources of private parties, in which the parties act as equal partners, it is possible to ensure the implementation of projects within the framework of the transition to public-private partnership. american journal of business management, economics and banking volume 34 march 2025 p a g e | 25 www.americanjournal.org the importance of public-private partnership in the country's economy is such that ppps can implement projects of social significance, pooling large amounts of resources in the region allows for a fair distribution of risks between public and private partners. the state partner (the state represented by its regional bodies) from attracting individual entrepreneurs to implement infrastructure projects within the framework of ppp interested. according to the world bank, a 10% increase in financial investments in infrastructure provides 1% of economic growth. therefore, the development of the ppp institution, in our opinion, is legally established as one of the mechanisms for implementing the concept of long-term socio-economic development of the republic [3]. the number of countries around the world that have adopted public-private partnership mechanisms and tools to develop public infrastructure and provide socially important services is increasing. a public-private partnership is a long-term agreement between a government agency and a private partner, whereby the latter assumes responsibility for managing the private facility and shares the risks with the government. ppps are financial relations aimed at ensuring economic growth as an effective mechanism for attracting investments. this allows attracting private sector resources and credit resources of banks, including international financial institutions, to projects related to poverty reduction and a prosperous life of the population. in our country, in recent years, the "green" economy has been certain experience is being gathered in financing infrastructural ppp projects that contribute to development. environmental projects in areas such as electricity, water supply and sanitation, and solid household waste are allocated priority financial support by international organizations. it is precisely the green economy that, while enabling resource efficiency, will also serve to solve social problems against the backdrop of population growth and improve well-being. in this regard, the development of the energy system, which is considered an important link in the economy, based on the principles of the green economy, is also gaining importance on a global scale. the resolution of the president of the republic of uzbekistan no. pp-57 dated february 16, 2023 “on measures to accelerate the introduction of renewable energy sources and energy-saving technologies in 2023” was also an important practical step[4]. the need to transition to green energy at a time when the national “energy consumption in our economy is twice as high as in other countries” is demanding. a rapid transition to renewable energy has double benefits for the economy and society. "by installing renewable energy sources, switching consumers to alternative energy and introducing energy-efficient technologies, it will be possible to generate an additional 5 billion kilowatt-hours of electricity and save 4.8 billion cubic meters of natural gas in 2023." a total of $15.4 billion is expected to be directed toward green energy transition financing goals, with private investors expected to account for 87 percent of all funds directed to public-private partnerships to finance the transition of consumers to alternative energy and the adoption of energy-efficient technologies. 1.1 billion dollars of credit funds from commercial banks, 610 million dollars of own funds of enterprises, 150 million dollars of funds from foreign financial organizations and 100 million dollars from the state budget are set to be directed to green energy [5]. it should be noted separately that state budget funds are directed to the transition of budget organizations to green energy. in 2023, 27 projects on the construction of large-scale solar and wind power plants are expected to be implemented on the basis of public-private partnership. also, in 2023, the address list of projects to american journal of business management, economics and banking volume 34 march 2025 p a g e | 26 www.americanjournal.org connect large-scale solar and wind power plants to power transmission networks on the basis of publicprivate partnership was approved [6]. conclusions in our opinion, in order to further develop ppps, it is necessary to identify the main directions of their improvement. in our opinion, it is necessary to provide and develop mechanisms for the appropriate protection of the rights of investors and creditors when implementing ppp projects. this includes the protection of investors' rights (including the adoption of court decisions in favor of private investors). the existing mechanism for making effective use of the practice of full-fledged legal protection of domestic ppp projects. this requires the development of a project evaluation system, which will help to further improve the investment climate and increase the confidence of private investors in legal protection. the objects of the legal framework for ppps in our republic are the law of the republic of uzbekistan "on concessions" and the law "on public-private partnerships". these two laws are the basis for the legal regulation of ppp projects. in order to increase their effectiveness, in our opinion, it is necessary to pay attention to the following shortcomings [7]: 1. lack of property rights of the private partner. according to the concession law, a private partner creates or reconstructs the concession object with its own funds, and ownership of it belongs to the state partner, that is, the state (article 21, clause iv of the concession law). thus, a private entrepreneur does not own the object, although the object was created at his own expense, but he has a significant role in creating the object. invests in the amount this situation creates a risk of abuse of power by state authorities and pressure on business. concessions that lack adequate administrative resources are particularly at risk. 2. the object of the concession cannot be used as collateral (for example, a pledge). according to the concession law, pledging the object of the concession agreement is not allowed. 3. the presence of a concession fee. according to the concession law, during the period of operation of the object of the concession agreement, a fee is charged to the state for engaging in private enterprise (concession (article 16, clause iii of the law on concessions). concession fees are considered the most controversial point of the concession law and the entire concession mechanism in general. because private business solves problems of social importance on its own responsibility, for which the state and local authorities are personally responsible. therefore, in order to solve these problems, it is necessary to increase the fees from the state. on the contrary, the situation leads to an increase in the cost of services provided to the population, which further increases social problems for the underserved part of the population. the law "on public-private partnership", unlike the law on concessions, is not limited to regulating only one ppp mechanism (in particular, by foreign investors) and has general characteristics. as a result of the conducted scientific research, we can make the following proposals regarding the use of public-private partnership mechanisms in the development of the green economy: acceleration of energy reform, in which it is necessary to introduce mechanisms that encourage the efficient use of energy; american journal of business management, economics and banking volume 34 march 2025 p a g e | 27 www.americanjournal.org financial support to private investors through the introduction of "green energy" bank finance products in public-private partnership projects in the energy sector, as a result, it allows to expand the scope of attracting investors to projects; it is necessary to effectively use levers that encourage the rational use of water; in order to actively introduce green financing instruments, it is necessary to develop the traditional market on the basis of healthy competition. references 1. https://miit.uz/oz/news/suv-resurslarini-boshkarish-vaqishloq-khojaligini-bararar-rovizhlantanibecame-one-of-the-topics-of-the-second-tashkent-international-investment-forum. 2. https://www.statista.com/chart/26140/water-stressprojections global/ 3. mirzakholikov b.b., rakhmanov d.a. form, model and mechanism of state-private partnership. aktualnye voprosy razvitiya sovremennogo obshchestva, ekonomiki i professionalnogo obrazovaniya: materialy xviii mejdunarodnoy molodejnoy nauchno-prakticheskoy konferentsii 24 marta 2021 g. t. yekaterinburg: rgppu, 2021. 148 p., p.48-51 4. https://review.uz/oz/post/ozbekiston-respublikasiprezidenti-shavkat-mirziyoyevning-2023-yiluchunmurojaatnomasi-toliq-matn 5. https://lex.uz/uz/docs/6385716 4 6. elmirzaev s., shavkatov n. issues of using public-private partnership mechanisms in the development of "green" economy. economy and finance / economy and finance 2023, 7 (167). 7. mirzakhalikov b.b. some definitions about the mechanism of public-private partnership and its role in strengthening the activities of business entities and small businesses. // scientific and technical journal of namiet. vol. 9 issue 3. 2024. 316-320 р.www.niet.uz 8. mirzakhalikov b.b. theoretical foundations of the study of the problem of poverty. collection of materials of the international scientific and practical conference on the topic of “current issues of the economy in expanding entrepreneurial activity and implementing modern projects” (november 5-6, 2024). volume ii. nammti, 2024, 530 pages, 94 p. 9. mirzakhalikov b.b. the problem of poverty and issues of combating it. collection of materials of the international scientific and practical conference on the topic “urgent issues of the economy in the expansion of entrepreneurial activity and the implementation of modern projects” (november 5-6, 2024). volume ii. nammti, 2024, 230 p. 10. mirzakhalikov b.b. theoretical foundations of the study of the problem of poverty. // green economy and development, tashkent, 2025.-№2.-p.567-571. https://miit.uz/oz/news/suv-resurslarini-boshkarish-vaqishloq-khojaligini-bararar-rovizhlantani-became-one-of-the-topics-of-the-second-tashkent-international-investment-forum https://miit.uz/oz/news/suv-resurslarini-boshkarish-vaqishloq-khojaligini-bararar-rovizhlantani-became-one-of-the-topics-of-the-second-tashkent-international-investment-forum american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 43 www.americanjournal.org the concept of financial stability of insurance companies and its theoretical basis khakberdiyev bekzod uktamovich phd., head of the faculty of distance and 2nd higher education of the tashkent state university of economics a b s t r a c t k e y w o r d s this article discusses the issues of improving the practice of ensuring the financial stability of insurance companies, and discusses the scientific and theoretical views of foreign and domestic economists on the development of the insurance market and ensuring the financial stability of insurance companies. it also covers the classification of financial stability of insurance companies and factors affecting the financial stability of insurance companies. in addition, practical conclusions and theoretical recommendations are formulated to improve the practice of ensuring the financial stability of insurance companies. insurance companies, insurance premium, insurance obligation, financial stability, insurance activities, ensuring stability, financial resources, investments. introduction at a time when further reform of the national insurance market and ensuring its rapid development, the introduction of new types of insurance services in high demand, and increasing consumer confidence in the insurance market are the most pressing issues of the day, the negative impact of a number of factors on the development of insurance services requires the implementation of appropriate work aimed at developing and introducing an innovative mechanism in the insurance sector, taking into account the real reality and its specific features in our country, as well as advanced foreign experience. as a result, the insurance sector should serve to ensure its long-term progressive development by further increasing the attractiveness of each potential policyholder to this type of activity. the resolution of the president of the republic of uzbekistan no. pq-4412 dated august 2, 2019 “on measures to reform the insurance market of the republic of uzbekistan and ensure its accelerated development [1]” sets various tasks, including improving the regulatory framework in the insurance sector, including the consistent implementation of standards and recommendations of international organizations and best world practices in this area, as well as increasing the level of capitalization, solvency and financial stability of professional participants in the insurance market, improving the quality of their assets, as well as developing the investment activities of insurers. the “development strategy of new uzbekistan for 2022-2026” [2] has also been developed. the development strategy is devoted to programmatic and targeted tasks that need to be implemented in the economic sector in 2022 and subsequent years, and the third large group of goals is called “intensive development of the national economy and ensuring high growth rates”. the well-developed socio-economic development american journal of business management, economics and banking volume 31 december 2024 p a g e | 44 www.americanjournal.org strategy defines the goals and objectives of economic reforms. in implementing the set tasks, a number of goals are included: increasing the role of the insurance sector, studying and discussing international experience in protecting the real sector of the economy, foreign and domestic investments, small businesses and private entrepreneurship through insurance, developing insurance services provided to citizens and increasing the insurance culture of the population, improving prudential norms for regulating the insurance market, and digitizing insurance activities and ensuring information security. based on the above reforms, it is undoubtedly the most urgent issue on today's agenda to assess the development trends and prospects of the insurance services market of our country, to identify the factors affecting the development of the insurance sector and their degree of influence, to identify fundamental problems related to this, and to develop proposals and recommendations aimed at solving them, based on national and foreign experience. review of literature on the topic according to foreign professor l.a. orlanyuk, insurance companies expand their opportunities to calmly cover losses incurred from insurance operations at the expense of profits from investment activities. this ensures their position in the market in a competitive environment [3]. according to the well-known economist a.k. shikhov, the insurance market is a system of economic relations between policyholders (insured person, beneficiary) whose property interests need protection in the event of unforeseen events, and insurers who provide this protection at the expense of an insurance fund formed from paid insurance premiums [4]. according to russian scientist e.v. kolomina, insurance, as one of the important financial institutions of society, consists of two components. first, insurance is one of the types of business. accordingly, the expression “insurance business” appeared, reflecting the economic relations of participants in insurance activities and their results. secondly, insurance is an institution that contributes to the life and activities of all members of society and the smooth functioning of the economy [5]. scientist, professor s.l. yefimov in his research said that the insurance portfolio is the liability of an insurance company or reinsurance company for all existing insurance or reinsurance contracts. the actual number of insured objects or the number of contracts issued in the current activity of the insurance company [6]. russian scientists l.i. korchevskaya and k. ye. according to turbin, insurance is a set of special redistributive relations between its participants in the formation of a target insurance fund at the expense of monetary contributions intended to compensate for possible extraordinary and other losses to enterprises and organizations or to provide material assistance to citizens [7]. local scientist i.kh. abdurakhmonov in his research outlined his views on the principles of insurance portfolio formation, the formation of insurance premiums, the introduction of new technologies into the industry to increase them, changes in the system, new forms of competition, and the increase in the insurance portfolio [8]. research methodology the article used scientific observation, a systematic approach, and research methods such as induction and deduction, comparison, and graphing. based on the analysis of existing methods and approaches in the insurance market, proposals and recommendations were developed to ensure the financial stability of insurance activities in uzbekistan. american journal of business management, economics and banking volume 31 december 2024 p a g e | 45 www.americanjournal.org analysis and discussion of results in the conditions of a market economy, the state has used all its capabilities to develop the insurance system, creates a legal framework that promotes the development of the insurance system, helps to find financial resources for the establishment of insurance companies, and carries out work related to licensing these companies. when analyzing the indicators of financial stability of insurance companies, it is important to classify the external and internal factors affecting it and reveal their main characteristics (table 1). table 1. classification of factors affecting the financial stability of insurance companies [9] external factors internal factors directly affected indirectly affected directly affected indirectly affected state regulation of insurance companies external, internal economic and political situation the number, development and stability of the number of clients general strategy of the company tax, currency, credit and customs policy level of macroeconomic indicators the volume and specialization of the company's activities diversification of the insurance portfolio and the volume of insurance services inter-financial relations between corporate structures state of development of financial market conditions the level of development of modern risk management amount of private equity and insurance reserves various factors affect the financial stability of each sector, in particular, the factors affecting the financial stability of insurance companies are divided into two, external and internal factors. the activities of companies are important in the rapid development of the insurance market, which is also reflected in the attitude of society to the insurance sector, and maintaining their financial stability in the long term is aimed at assessing the influencing factors and creating mechanisms for minimizing risks. figure 1. the distribution function of finance in individual functions in the insurance sector [10] american journal of business management, economics and banking volume 31 december 2024 p a g e | 46 www.americanjournal.org also, when building an insurance portfolio, an insurance company should pay special attention to its composition. if the number of insurance contracts for one type of insurance is disproportionate to the share of premiums received under them, and this, in turn, is disproportionate to the size of the corresponding insurance sum, then the insurance portfolio is considered unbalanced. it should be remembered that in unstable economic conditions, an insurance company is exposed to the influence of external (exogenous) and internal (endogenous) factors and must take them into account in its activities. thus, the activities of an insurance company include operational and entrepreneurial risks that significantly affect its financial stability and solvency, and the prevention and correct assessment of risks, in turn, can significantly positively affect the financial stability of insurance activities. one of the main reasons for this is the limited number of employees of the insurance supervision inspectorate under the ministry, who mainly keep statistics. as a result of insufficient information on insurance activities in the regions, the population's confidence and understanding of insurance is not fully formed. this has a negative impact on the growth of the industry’s share in gdp and the financial stability of companies (figure 2). figure 2. share of insurance premiums of foreign countries in gdp 2022 y. (in percent) [11] the law “on insurance activity”, adopted 15 years ago, does not fully meet today’s requirements. in particular, certain types of compulsory insurance have been introduced on the basis of government decisions and are not regulated by law. in addition, the lack of involvement of large international insurance and reinsurance companies in the country’s insurance market, as well as the incomplete implementation of international norms, standards and principles of the international association of insurance supervisors and financial reporting and accounting is an obstacle for medium-sized companies to obtain international ratings. uzbekistan western europe asia russian kazakhstan insurance premium 0.70% 9.40% 7.10% 1.90% 0.90% 0.70% 9.40% 7.10% 1.90% 0.90% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% the share of insurance premiums in gdp american journal of business management, economics and banking volume 31 december 2024 p a g e | 47 www.americanjournal.org figure 3. financial indicators of the insurance market of uzbekistan [12] according to the data in the figure above, in the indicators of investment activity affecting the financial stability of insurance organizations, deposits accounted for 66 percent in 2023, which did not differ significantly compared to 2022, while in the securities sector, it was 22 percent in 2023, a decrease of -5 percent compared to 2022, and we can also see that real estate accounted for 9 percent in 2023, an increase of 1 percent compared to 2022, while the participation in the authorized fund of organizations decreased by 2 percent, and the other investments segment decreased by -1 percent compared to 2022. the total authorized capital of insurance companies in 2023 will be 2.3 trillion. amounted to soums, an increase of 22% compared to 2022, which, in turn, indicates an improvement in the financial stability of insurance organizations. in terms of total written insurance premiums in the first quarter of 2023, the three largest state insurance companies "uzbekinvest", "kafolat", "uzagrosugurta" were the first, second and fourth largest insurance companies, respectively, with a total market share of 36.3%. conclusions and suggestions further reform of the national insurance market and its rapid development, introduction of new types of insurance services in high demand, increase consumer confidence in the insurance market, as well as reform of the insurance market in accordance with the state program for the implementation of the action strategy on five priorities and the following rapid development: improving the regulatory framework in the field of insurance, including the consistent introduction of international standards and recommendations, as well as best international practices in this field; institutional development of activities aimed at ensuring the stability of this market through the application of effective mechanisms of regulation and prudential control; increase the level of capitalization, solvency and financial stability of professional participants of the insurance market, optimize the structure of their assets, as well as the development of investment activities of insurers; american journal of business management, economics and banking volume 31 december 2024 p a g e | 48 www.americanjournal.org development of the insurance market infrastructure on the basis of activating the activities of insurance brokers, improving the system of insurance agents, introducing bank insurance mechanisms, as well as increasing the role of professional participants in the insurance market in general; strengthening the protection of the rights of consumers of this service and the subjects of insurance relations, increasing public confidence in insurance, ensuring the transparency of the insurance market; increase the volume and variety of insurance services provided through the introduction of innovative insurance products and the development of traditional products in high demand; extensive use of modern information technologies in the field of insurance, active development of electronic forms of insurance services; improving the system of training, retraining and advanced training of specialists in the field, the use of modern methods of education in the field of insurance, targeted incentives for research activities; the main directions are to form and maintain a positive image of the national insurance market and increase its investment attractiveness, including through the integration of the national insurance market with international and foreign insurance markets. references 1. resolution of the president of the republic of uzbekistan no. pq-4412 dated august 2, 2019 “on measures to reform the insurance market of the republic of uzbekistan and ensure its accelerated development”. 2. decree of the president of the republic of uzbekistan no. pf-60 dated january 28, 2022 “on the development strategy of new uzbekistan for 2022-2026”. 3. орланюк-малицкая л. а., янова с. ю. страхование как зеркало национальной экономики //журнал правовых и экономических исследований. – 2016. – №. 3. – с. 154-161. 4. шихов а. к. о природе и социальном интересе, субъектах и объекте социального страхования (к вопросу развития теории социального страхования) //страховое дело. – 2010. – №. 4. – с. 3-18. 5. коломина э.в. теоретические и практические аспекты страховой защиты жизни и здоровя граждан россии // финансы, 2008. №7. с. 47. 6. ефимов с.л. (1996) портфель страховой/экономика и страхование: энциклопедический словарь – москва: церих-пэл, 385-528 с. 7. корчевская л. и., турбина к. е. страхование от а до я: книга для страхователя //м.: инфрам. – 1996. 8. abdurakhmonov, i.kh. (2018). insurance theory and practice. textbook. – t.: “economy-finance” publishing house, 23-24. 9. it was prepared independently by the author based on information obtained from literature on economics and finance. 10. шеннаев х. м. перспективы развития страхового рынка республики узбекистан в условиях модернизации экономики //актуальные проблемы гуманитарных и естественных наук. – 2015. – №. 9-1. – с. 169-171. 11. prepared by the author based on statistical data from the official website of axco global https://axcolive.co.uk/ 12. prepared by the author based on information from the official website of the ministry of economy and finance https://www.imv.uz/. https://axcolive.co.uk/ https://www.imv.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 39 www.americanjournal.org effective organization of management of a modern housing stock berdiyeva dilfuza akhatovna ph.d., associate professor head of the "management" department of tashkent university of architecture and construction, e-mail: dili01.07@mail.ru a b s t r a c t k e y w o r d s this article includes the classification of types of modern housing stock and the effective organization of management. the main components of the housing problem in the republic of uzbekistan, problematic situations of a complex nature of the housing stock were identified. the main tasks for achieving the effective development of the modern housing stock were identified. in conclusion, the main tasks for the effective development of the modern housing stock were identified. proposals for the effective organization of management of the modern housing stock were developed. modern housing stock, management, construction, population, technology, territories. introduction the housing fund is one of the most important components of the country's infrastructure.the quality of housing stock management has a direct impact on the comfort and safety of residents. the correct approach to management allows to ensure the proper maintenance of residential buildings, to maintain and improve their condition, as well as to take into account the interests of the population. there are many techniques and methods of housing management that can be used in both urban and rural areas. one of the most effective methods is to create a community of housing owners, whose representatives are elected by the population. this allows residents to actively participate in management and make decisions about the maintenance and repair of the common property. republic of uzbekistan also in development strategyon the basis of the programs for the comprehensive socio-economic development of the regions for 2022-2026, developing regional development programs with a thorough study of the problems and opportunities of all districts and cities every yearaimed at [1]. the production volume of construction works in uzbekistan in the first half of 2022 amounted to 60325.4 billion soums, and the growth rate compared to the corresponding period of 2021 was 106.2 percent. according to the data of the state statistics committee, in the first half of 2022, the growth rate of construction of buildings and structures compared to the same period of 2021 was 66.9 percent and reached 101.9 percent. the construction of civil facilities was set at the level of 21.1 percent, and the growth rate reached 1-2.9 percent. specialized construction works made 12.0 percent, the growth american journal of business management, economics and banking volume 32 january 2025 p a g e | 40 www.americanjournal.org rate was 150.4 percent. the high dynamics of the development of the construction industry is characterized by the increase in the production of local building materials [3]. relevance of the research topic in the decision of the president of the republic of uzbekistan dated april 24, 2017, pq-2922 "on measures to further improve the system of maintaining and using the multi-family housing fund in 2017-2021"measures aimed at improving the housing conditions of the population, timely and highquality repair of engineering communications and common areas of the multi-apartment housing fund, as well as beautification of the areas adjacent to the multi-apartment housing fund with children's and sports fields implementation of activities; the goals of creating an effective vertical system of managing the housing and communal economy and implementing complex measures for the development of the multi-apartment housing fund utilization and its service market are set [2]. the resolution of the president of the republic of uzbekistan "on approval of the strategy of the transition to the "green" economy of the republic of uzbekistan in the period 2019-2030" sets the goal of implementing state programs to increase the energy efficiency of buildings, including the reconstruction of multi-story housing and private housing [ 3]. today, technology also plays an important role in housing management. the introduction of automated systems of accounting and monitoring allows real-time monitoring of the state of housing, execution of planned works, taking into account the opinions of residents. such systems simplify the interaction between residents and management bodies, reduce the amount of paperwork and increase the efficiency of management processes. in general, effective management of housing stock requires a comprehensive approach that covers not only technical and technological aspects, but also social, economic and legal aspects. only the synergy of these factors makes it possible to create comfortable living conditions for all its residents and improve the quality of housing. setting a scientific problem improving the quality of life by providing the largest number of citizens with modern housing is defined as a priority of state policy and is a vector of socio-economic development of regions and the country as a whole. the importance of paying attention to the reproduction of the housing stock and its impact on the provision of housing to the population is not only related to the difficult situation in housing construction, but also to the consistent implementation of the country's socio-economic development, which is determined by the quality of life of different layers of society. however, the impact of structural constraints reinforced by unresolved social and institutional problems revealed internal problems in the reproduction of the housing stock. among them, the most important are: imbalance of supply and demand in the housing market; lack of effective mechanisms of effective management and mutual cooperation between state authorities and management bodies and representatives of the business, scientific community and population; lack of incentives for private investors to build housing stock and its subsequent activities; failure to perform current and capital repair works of housing facilities on time. american journal of business management, economics and banking volume 32 january 2025 p a g e | 41 www.americanjournal.org the purpose of the study it requires the development of a comprehensive understanding of the system of reproduction of housing stock, its formation factors, effective operation and development in market conditions. considering theseto make scientific proposals and practical recommendations based on the results of the analysis conducted by the researcher in connection with the effective organization of housing fund management. scientific essence taking into account the data on the reproduction of the modern housing fund, it is important to consider the ways of providing the population of the region with cheap and high-quality real estate by forming new effective organizational and economic models, using effective means of housing construction. also, identification and neutralization of possible risks in the housing real estate market, including indicators for assessing the condition of the housing stock, use of innovative means of mortgage lending to the population, and a cluster approach to the formation of a modern housing stock reproduction market, its development in the municipality it is necessary to ensure the strengthening of the role of socially oriented directions. at the present time, the work of foreign and local scientists in the rational use of the housing stock and increasing the efficiency of its management is noteworthy. "in the process of digitalization of the economy, one of the priority tasks of the state is to achieve full satisfaction of the population's need for a modern home, to provide citizens with high-quality living conditions, and to conduct a rational policy based on the approach within their income, needs and opportunities." [4]. "as a result of the privatization of the state housing fund in uzbekistan, its current management system, mainly organized by the state authorities in an administrative manner, has led to the view that the housing owners' association is not their beneficial organization, but the former "housing exploitation office" under a new name. came." [5]. "housing management is one of the most conservative directions, due to the high social importance of housing and the need to ensure its affordability, state regulation of prices existed in the administrativeplanned economy for many years, but did not help the development of market relations and attracting business." [6]. e.v. according to sultanova, the concept of "housing" is directly related to the concepts of "housing stock" and "housing" [7]. in this regard, t.a. khasanov said, "the most important feature of the housing and communal economy is its high social importance, the quality of life of all layers of the population, and the social climate in society depends on its effective operation." defined as [8]. research methods economic analysis, statistical grouping, systematic and comparative analysis and other methods were used in the research process. main results today, the population is passive and does not want to participate in the management of the modern housing fund. in order to avoid further misunderstandings, it is necessary to legally strengthen the existing situation by concluding an agreement with the owners on the management of their shares in american journal of business management, economics and banking volume 32 january 2025 p a g e | 42 www.americanjournal.org the common property. such an agreement protects the management organization from possible problems. another feature of the housing fund as a management object is that it is not the same. each residential building as a product has different levels of living comfort, which is determined by the different consumption characteristics of the residential unit. the consumption characteristics of the house are determined by a wide range of different factors, which can be classified as follows: 1) factors describing the house itself; 2) factors describing the area where the house is located. factors that describe the house itself include: number of floors, wall materials, year of construction, level of physical wear and actual condition of the house; level of improvement characterized by availability of various services, primarily utilities; the resource intensity of the house, that is, the necessary amount of various types of resources heat, water, etc. needed to ensure a certain level of living comfort. factors that characterize the area in which residential property is located include: location of the plot of land in the territory of the governorate; form of land use; the area of the plot of land assigned to the property; greening of the plot of land, roads, sidewalks, approach conditions, green space area, recreation area condition. an effective monitoring program is needed to assess the effectiveness of housing stock management and to make corrections to the management program of housing owners or the agency acting on its behalf. "effective household management creates the need to organize the activities of companies." [9]. in order to ensure a certain level of living comfort in different houses, appropriate resources (primarily financial and material) are required, the amount of which can vary depending on many factors, the main of which are: the initial state of the modern housing fund; existing complex of housing and communal services; the resource density of this housing fund, including the sanitary and technical facilities installed in it; the area and condition of the adjacent plot of land, hard road surface, sidewalks, lawns, bushes, trees, recreation areas, etc.; the level of damage caused to the property by the people living in it. table 1 above shows the distribution of the republic's housing stock according to the form of ownership. according to it, private property will be 633132.6 thousand square meters by 2022. in 2023, it will be 654908.6 thousand square meters, compared to last year it is 21776 thousand square meters. we can see that it has increased by a difference. public property in 2022 will be 3281.7 thousand square meters. in 2023, it will be 3448.4 thousand square meters and 166.7 thousand square meters. we can see that the difference has increased. all of the above requires an individual approach to each property. each such object needs a management program that takes into account all the characteristics of the residential building and the american journal of business management, economics and banking volume 32 january 2025 p a g e | 43 www.americanjournal.org neighboring area. the management organization must know the construction features of the building, the features of providing utility services to consumers, the location of utility networks both inside the house and on the territory of the land plot. table 1. distribution of the republic's housing fund according to the form of ownership(by the end of the year, thousand square meters)1 when building a housing fund management system, it is necessary to take into account the social importance of real estate in the housing sector. the management organization must meet with tenants and owners of residential buildings and their families on a daily basis. all activities of the management organization are aimed at meeting the demands of citizens, providing them with housing and communal services, and eliminating malfunctions in utility networks and construction facilities. after all, success in the housing management services market should depend on citizens' assessment of the work of the management organization. the management organization should be able to work not only with the owners of housing stock, but also with all citizens living in residential buildings. the social importance of the housing fund is reflected in the legislation of the republic of uzbekistan. residential buildings provided to citizens must be well equipped and meet the specified sanitary and technical requirements. management companies are obliged to provide accommodation to owners and tenants and their families at a level not lower than the established standards. otherwise, state control bodies have the right to collect fines from management organizations or owners for violating the law. a unique feature of the modern housing fund as a management object is a complex system of financial flows. most of the housing and communal services provided in the housing fund come from different levels of budgets. in many districts, a part of the funds collected for renting non-residential buildings 1 https://stat.uz/uz/ https://stat.uz/uz/ american journal of business management, economics and banking volume 32 january 2025 p a g e | 44 www.americanjournal.org is allocated to the management of the housing fund. residents are given benefits in paying housing and communal services. it is necessary to introduce differentiated payments for modern housing for rent in cities, depending on the level of comfort, as well as differentiated tariffs for housing and communal services, depending on the level of improvement of the housing, its obsolescence, and the area occupied by the tenant (surplus). management companies must monitor the receipt of payments from all sources of financing, including from each owner and tenant of residential buildings. setting up an accounting account for receiving funds from users is a very complicated task. to solve this problem, special departments are established in the structure of management companies. in some cities, independent organizations cash settlement centers are being established, which will provide management organizations with quick information on receiving funds from the population. conclusions and suggestions summary it can be said that it is necessary to summarize and compile the defined legal categories necessary for the concept of the management mechanism of multi-story buildings, to define their role, and also to propose ways to solve problems in housing legislation. thus, modern housing stock is a set of residential buildings, including residential buildings, apartments, their parts and individual rooms. under civil law, the owner bears the burden of maintaining and repairing his property. if it is not difficult to implement this requirement for residential private buildings, it has its own characteristics for modern apartment buildings. since any modern high-rise apartment building includes common property objects in addition to apartments, a special mechanism for its management is established. the main issues related to the repair and maintenance of the property of an apartment building are within the authority of the building management body to make a decision on the general meeting of building owners, including the choice of the management method of such a building. the management of an apartment building must provide comfortable and safe living conditions for citizens, properly maintain common property in an apartment building, solve issues related to the use of said property, and also provide high-quality communal services to citizens living in such a modern building. assessing the condition of the common property of building owners in the management of housing stock, determining the goals of house management, taking into account the planned measures to achieve them, controlling the persons responsible for maintaining and servicing residential buildings, common property, as well as other actions is to do. references 1. decree of the president of the republic of uzbekistan sh.m. mirziyoev "on the development strategy of the new uzbekistan for 2022-2026". 01.02.2022 2. decision pq-2922 of the president of the republic of uzbekistan dated april 24, 2017 "on measures to further improve the system of maintaining and using multi-family housing stock in 2017-2021" 3. decision pq-4477 of the president of the republic of uzbekistan on october 4, 2019 "on approval of the strategy of the transition to the "green" economy of the republic of uzbekistan in the period 2019-2030". american journal of business management, economics and banking volume 32 january 2025 p a g e | 45 www.americanjournal.org 4. berdiyeva d.a. improving the efficiency of the housing fund financial management mechanism. monograph. 191 p. 5. hasanov t.a. improvement of the private housing stock management system in uzbekistan. abstract of doctor of philosophy (phd) dissertation in economic sciences. tashkent 2019. 48 pages. 6. дубнюк э.н. модел управления жилищным фондом на основе территориального обшенственного селф-менеджмент. автореферат диссертации на соискание ученной степи кандида экономических наук. пенза 2013. 7. основной функционирования жкх: учебное пособие / э.в. султанова, я.а. волнчук; владивосток государственный университет eсonomiсs and service. – владивосток: изд-во вгуес, 2017. – 88 п. 8. khasanov t.a. housing fund as an object of management. tashkent, 2017. taki. tashkent 2022. 9. berdiyeva d.a. organization and financial management of private housing owners' associations. study guide. t. : taqi, 2019, 202 pages. 10. filimonov c. tsj: problems and perspectives // jkx. 2000. #11. pp. 72-79. 11. stepaev k. s. innovative development of management company and communal-communal sphere [text] // actual economic questions and management: materialy mejdunar. nauch. conf. moscow, april 2011. 12. https://ru.essays.club/ 13. https://stat.uz/uz/ https://ru.essays.club/ https://stat.uz/uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 1 www.americanjournal.org current state of accounting of income and costs in insurance organizations kuvatova dinara doctoral student of tashkent state university of economics tashkent, uzbekistan a b s t r a c t k e y w o r d s the article explores the current state of accounting for income and costs in insurance organizations, emphasizing the unique challenges and requirements faced by the industry. it delves into the specific accounting practices adopted by insurance companies, highlighting the importance of accurate financial reporting for regulatory compliance and business sustainability. the study examines the impact of technological advancements, regulatory changes, and global financial standards on the accounting processes within the insurance sector. through a comprehensive analysis, the article identifies key areas for improvement and suggests best practices to enhance the accuracy and efficiency of income and cost accounting in insurance organizations. insurance accounting, income accounting, cost accounting, financial reporting, regulatory compliance, insurance organizations, technological advancements, global financial standards, accounting practices, financial management. introduction the insurance industry operates within a complex financial and regulatory environment, necessitating meticulous accounting practices to accurately capture income and costs. accounting in insurance organizations is not merely about tracking revenues and expenses; it involves a sophisticated system of financial reporting, compliance with regulatory standards, and the management of financial risks associated with underwriting and investment activities. the current state of accounting for income and costs in insurance organizations reflects the dynamic interplay between regulatory demands, technological advancements, and the inherent financial intricacies of the insurance business. in the contemporary financial landscape, insurance companies face increasing pressure to adhere to stringent regulatory frameworks such as the international financial reporting standards (ifrs) and the generally accepted accounting principles (gaap). these standards require insurance organizations to maintain transparent and accurate financial records, which are essential for ensuring investor confidence and maintaining market stability (beattie, goodacre, & thomson, 2021). the implementation of ifrs 17, which focuses on insurance contracts, represents a significant shift in how insurance companies account for their income and costs. this new standard aims to provide a more consistent and comparable approach to financial reporting, enhancing the transparency of insurance liabilities and profitability (barker & mcgeachy, 2019). american journal of business management, economics and banking volume 25 june 2024 p a g e | 2 www.americanjournal.org technological advancements have profoundly impacted the accounting processes within the insurance sector. the adoption of advanced software solutions and automation tools has streamlined data collection, analysis, and reporting, thereby improving the accuracy and efficiency of accounting practices (roussy & rodrigue, 2018). for instance, enterprise resource planning (erp) systems and specialized insurance accounting software have enabled insurers to integrate their financial operations, reduce manual errors, and enhance decision-making capabilities (vasarhelyi, kogan, & tuttle, 2015). moreover, the advent of big data analytics and artificial intelligence has further revolutionized the accounting landscape by providing deeper insights into financial performance and risk management (bhimani, 2020). despite these advancements, insurance organizations continue to grapple with various challenges in accounting for income and costs. one significant issue is the complexity of accurately estimating and reporting insurance liabilities, such as claims reserves and unearned premiums. the estimation process often involves significant judgment and actuarial expertise, leading to potential discrepancies and financial misstatements (grace, klein, & kleindorfer, 2016). additionally, the volatile nature of financial markets and interest rates poses challenges for insurers in managing their investment portfolios and accurately reflecting their financial positions (eling & schmeiser, 2010). another critical aspect of accounting in insurance organizations is the need for robust internal controls and audit mechanisms to ensure the reliability and integrity of financial data. effective internal controls help mitigate risks associated with fraud, errors, and non-compliance with regulatory requirements (knechel & salterio, 2016). the role of external auditors is also pivotal in providing an independent assessment of the financial statements, thereby enhancing the credibility and transparency of the reported financial information (peecher, solomon, & trotman, 2013). furthermore, the evolving regulatory landscape necessitates continuous adaptation and improvement of accounting practices. regulatory bodies, such as the financial accounting standards board (fasb) and the international accounting standards board (iasb), frequently update their guidelines to address emerging issues and enhance the relevance and reliability of financial reporting (fasb, 2020). insurance companies must stay abreast of these changes and ensure timely implementation to maintain compliance and uphold their financial integrity. in summary, the current state of accounting for income and costs in insurance organizations is shaped by a myriad of factors, including regulatory requirements, technological advancements, and inherent industry challenges. this article aims to provide a comprehensive overview of these factors, highlighting the importance of accurate financial reporting and suggesting best practices for improving accounting processes in the insurance sector. by examining the intersection of regulatory standards, technological innovations, and financial management practices, this study seeks to contribute to the ongoing discourse on enhancing the accounting framework within the insurance industry. materials and methods the accounting of income and costs in insurance organizations encompasses a range of activities that are critical for financial reporting, regulatory compliance, and operational efficiency. this section delves into the key components and contemporary challenges of accounting in the insurance industry, focusing on revenue recognition, cost management, regulatory impacts, technological advancements, and best practices. revenue recognition in insurance accounting american journal of business management, economics and banking volume 25 june 2024 p a g e | 3 www.americanjournal.org revenue recognition in insurance accounting is a multifaceted process that involves recording premiums, investment income, and reinsurance recoveries. premiums, the primary source of revenue for insurance companies, are recognized based on the terms of the insurance contracts. under ifrs 17, the revenue from insurance contracts is recognized as the insurance service is provided, rather than when premiums are received. this approach ensures that revenue recognition aligns with the provision of insurance coverage, thereby offering a more accurate reflection of the insurer’s financial performance (barker & mcgeachy, 2019). investment income is another significant revenue stream for insurance companies. given the nature of their business, insurers often hold substantial investment portfolios to back their liabilities. the accounting for investment income must accurately reflect changes in market values, interest rates, and the financial health of the investment vehicles. gaap and ifrs provide guidelines for the recognition and measurement of investment income, emphasizing the need for fair value accounting and the impairment of financial assets (beattie, goodacre, & thomson, 2021). reinsurance recoveries are also crucial, as they represent amounts recoverable from reinsurance contracts for claims paid. accurate accounting for reinsurance transactions is essential to mitigate risks and avoid financial misstatements. the recent introduction of ifrs 17 has refined the accounting for reinsurance contracts, requiring consistent recognition of reinsurance income and expenses with the underlying insurance contracts (barker & mcgeachy, 2019). cost management in insurance accounting cost management in insurance organizations involves tracking and controlling operating expenses, claims costs, and acquisition costs. operating expenses include administrative costs, salaries, and technology expenses. effective cost management strategies are vital for maintaining profitability and ensuring competitive pricing of insurance products (kozak, 2011). claims costs, which represent the largest expense for insurers, must be accurately estimated and recorded. this involves actuarial assessments to set aside adequate reserves for reported but not settled claims (rbns) and incurred but not reported claims (ibnr). actuarial assumptions and methodologies significantly impact the accuracy of claims cost estimation and, consequently, the financial health of the insurer (grace, klein, & kleindorfer, 2016). acquisition costs, including commissions and marketing expenses, are incurred to acquire new insurance policies. these costs are typically deferred and amortized over the life of the insurance contract under the deferral and matching principles. however, the implementation of ifrs 17 has introduced changes to the treatment of acquisition costs, necessitating careful consideration by insurers to ensure compliance (barker & mcgeachy, 2019). regulatory impacts on insurance accounting the regulatory landscape for insurance accounting is continually evolving, with significant implications for financial reporting and disclosure. regulations such as the solvency ii directive in europe and the risk-based capital (rbc) requirements in the united states impose stringent capital and reporting standards on insurers. these regulations aim to enhance the financial stability and solvency of insurance companies, thereby protecting policyholders and maintaining market confidence (eling & schmeiser, 2010). ifrs 17 represents a major overhaul in insurance accounting, replacing ifrs 4 and introducing a comprehensive framework for the recognition, measurement, and disclosure of insurance contracts. the standard requires insurers to measure insurance liabilities at current fulfillment value, american journal of business management, economics and banking volume 25 june 2024 p a g e | 4 www.americanjournal.org incorporating explicit risk adjustments and discounting future cash flows. this approach enhances comparability and transparency in financial reporting, albeit posing implementation challenges for insurers (barker & mcgeachy, 2019). the financial accounting standards board (fasb) in the united states has also updated its guidance on accounting for long-duration insurance contracts. the new standard, asu 2018-12, requires insurers to review and update assumptions used to measure the liability for future policy benefits and to disclose more granular information about the impact of those assumptions (fasb, 2018). technological advancements in insurance accounting technological advancements are reshaping the accounting landscape in the insurance industry. the adoption of enterprise resource planning (erp) systems, big data analytics, and artificial intelligence (ai) is enhancing the accuracy and efficiency of financial reporting processes. erp systems integrate various accounting functions, providing real-time data and streamlined workflows that reduce the risk of errors and improve decision-making (vasarhelyi, kogan, & tuttle, 2015). big data analytics allows insurers to analyze vast amounts of data to identify trends, assess risks, and make informed financial decisions. for example, predictive analytics can improve claims cost estimation by identifying patterns and anomalies in historical data (bhimani, 2020). ai and machine learning algorithms are also being used to automate routine accounting tasks, such as transaction processing and reconciliations, freeing up human resources for more strategic activities (davenport & kirby, 2016). blockchain technology, with its decentralized and immutable ledger, offers potential applications in insurance accounting by enhancing transparency and reducing fraud. smart contracts, executed on blockchain platforms, can automate the claims process and ensure timely and accurate payment settlements (tapscott & tapscott, 2016). best practices in insurance accounting to navigate the complexities of accounting for income and costs, insurance organizations should adopt best practices that ensure compliance, accuracy, and efficiency. key best practices include: • implementing robust internal controls: effective internal controls are essential to mitigate risks of fraud, errors, and regulatory non-compliance. regular audits and control assessments can help identify weaknesses and improve financial reporting processes (knechel & salterio, 2016). • staying abreast of regulatory changes: insurance companies must stay informed about changes in accounting standards and regulatory requirements. continuous professional development and engagement with industry bodies can help organizations adapt to new regulations (fasb, 2020). • leveraging technology: embracing advanced technologies such as erp systems, big data analytics, ai, and blockchain can enhance the accuracy and efficiency of accounting processes. investing in technology and training staff to use these tools effectively is crucial (vasarhelyi, kogan, & tuttle, 2015). • enhancing actuarial capabilities: given the importance of actuarial assumptions in estimating insurance liabilities, insurers should invest in actuarial expertise and tools to improve the accuracy of their estimates (grace, klein, & kleindorfer, 2016). • improving transparency and disclosure: transparent financial reporting builds trust with stakeholders and enhances market confidence. insurance companies should strive for clear and comprehensive disclosures that provide meaningful insights into their financial performance and risks (barker & mcgeachy, 2019). american journal of business management, economics and banking volume 25 june 2024 p a g e | 5 www.americanjournal.org conclusion in conclusion, the current state of accounting for income and costs in insurance organizations is shaped by regulatory requirements, technological advancements, and industry-specific challenges. by adopting best practices and leveraging technology, insurance companies can improve the accuracy and efficiency of their accounting processes, ensuring compliance and maintaining financial stability. references 1. barker, r., & mcgeachy, a. (2019). ifrs 17 insurance contracts: a new era in financial reporting. journal of international accounting research, 18(2), 47-68. 2. beattie, v., goodacre, a., & thomson, s. j. (2021). international financial reporting standards and the insurance industry. accounting and business research, 51(1), 1-23. 3. bhimani, a. (2020). exploring big data’s strategic consequences. journal of information systems, 34(2), 53-64. 4. eling, m., & schmeiser, h. (2010). insurance and the credit crisis: impact and ten lessons learned. risk management and insurance review, 13(1), 1-24. 5. fasb. (2020). fasb accounting standards codification. financial accounting standards board. 6. grace, m. f., klein, r. w., & kleindorfer, p. r. (2016). the demand for homeowners insurance with bundled catastrophe risks. journal of risk and insurance, 83(1), 217-255. 7. knechel, w. r., & salterio, s. (2016). auditing: assurance and risk. routledge. 8. peecher, m. e., solomon, i., & trotman, k. t. (2013). research implications for audit practice: a report of the auditing section research committee. american accounting association. 9. roussy, m., & rodrigue, m. (2018). internal audit: is the ‘third line of defense’ effective as a risk mitigator? managerial auditing journal, 33(2), 224-244. 10. vasarhelyi, m. a., kogan, a., & tuttle, b. (2015). big data in accounting: an overview. accounting horizons, 29(2), 381-396. 11. sirajiddinov, n., & norkobilov, a. (2024). exploring the impact of invoicing currency on foreign trade. science and innovation, 3(a4), 166-174. 12. sirajiddinov, n. (2020). trade and economic cooperation of uzbekistan with central asia countries. international relations: politics, economics, law, 2019(34), 25-36. 13. sirajiddinov, n. (2020). trade and economic cooperation of uzbekistan with central asia countries. international relations: politics, economics, law, 2019(34), 25-36. 14. capolupo, r., & jonung, l. (2008). the effects of the real exchange rate volatility and misalignments on foreign trade flows in uzbekistan. economics discussion paper, (2008-29). 15. sirajiddinov, n. (2017). currency regime of uzbekistan: goals, consequences, ways to improve. international relations: politics, economics, law, 2017(1), 72-88. 16. ibragimov, m., ibragimov, r., & sirajiddinov, n. (2009). modeling and forecasting income tax revenue: the case of uzbekistan. economic forecasting. economic issues problems and perspectives, 213-227. 17. sirajiddinov, n. (2004). main stages of economic reforms in uzbekistan. centre for economic research. 18. olimov, u., & sirajiddinov, n. (2008). the effects of the real exchange rate volatility and misalignments on foreign trade flows in uzbekistan. american journal of business management, economics and banking volume 25 june 2024 p a g e | 6 www.americanjournal.org 19. азларова, а. (2020). рақамли трансформация шароитида банкларга рақобатбардош мутахассис кадрлар тайёрлашнинг долзарб масалалари. архив научных исследований. 20. sabirovna, g. g. (2022). advantages and disadvantages of financial globalization. res militaris, 12(4), 2159-2163. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 1 www.americanjournal.org improving the financing of school education based on international experience sharapova mashkhura azadovna tashkent state university of economics, associate professor of the department of “finance and financial technologies”, ph.d., g-mail: sharapovamash@gmail.com orcid: 0009-0004-0345-5171 a b s t r a c t k e y w o r d s this study explores contemporary methodologies for funding school education in uzbekistan and globally. it presents a comparative review of general education budget allocations across several countries, focusing on the proportion of school-level expenditures within total educational spending. the article highlights the effectiveness of public financing, the contribution of private and international funds, and the imperative to boost investments in the school sector. the findings underline the need for enhanced transparency, efficiency, and fairness in resource distribution. based on these insights, targeted recommendations are proposed to improve uzbekistan’s school financing framework. school education, financing, budget allocation, uzbekistan, gdp, efficiency, government expenditures, comparative analysis. introduction school education serves as the cornerstone for a country's long-term socio-economic progress. within the context of a globalized economy, the state's role in guaranteeing quality, accessibility, and efficient funding mechanisms becomes strategically vital. different nations have implemented diverse models of governmental involvement in educational policy, reflecting their unique socio-economic priorities and resource capacities. at the international level, numerous efforts have been directed at optimizing the use of financial resources dedicated to general education systems. according to data from oecd member countries, approximately 8 to 10 percent of total public budget expenditures are typically allocated to general secondary education. for instance, the united states directs around 6% of its overall government budget to education, while japan allocates about 3.2%. france dedicates between 9 and 10 percent of total government spending to educational purposes, with a substantial portion earmarked specifically for school education [1]. globally, the extent of public education funding often mirrors a country's stage of socio-economic development and the degree to which its economy prioritizes social objectives. in many developed nations, the state plays a central role in administering school education. this involves setting educational standards, designing curricula, defining teacher qualification requirements, and american journal of business management, economics and banking volume 37 june2025 p a g e | 2 www.americanjournal.org implementing quality assessment mechanisms. finland exemplifies a model where the ministry of education and culture formulates policies and allocates resources, yet schools retain significant autonomy over pedagogical methods. this hybrid governance model fosters trust and promotes high educational outcomes. literature review education is increasingly recognized as a fundamental driver of national competitiveness within the global economy. sustainable financing of school education is essential to cultivate the knowledge and competencies demanded by the contemporary world [2]. securing stable and sufficient funding for school education is a prerequisite for achieving sustainable development objectives and ensuring equitable access to quality learning opportunities [3]. harry anthony patrinos, an economist with the world bank, underscores the critical importance of education financing, stating that investments in education are among the most effective tools to stimulate economic growth and reduce poverty. he highlights that financing quality school education is a cornerstone of building human capital [4]. eric a. hanushek, a renowned education economist, emphasizes that mere expenditure on education does not guarantee improvements in quality. instead, the efficiency of fund utilization and ensuring equitable access to high-quality schooling are crucial factors [5] research by h. dustmukhammed introduces a set of indicators designed not only to evaluate the current condition of public education but also to analyze the effectiveness of targeted expenditures and identify potential internal and external risks influencing future budgeting [6]. d. mirkhodja’s studies stress the importance of mobilizing extrabudgetary resources for school development, proposing mechanisms such as supplementary salary bonuses for teachers and voucherbased financing schemes [7]. ensuring stable and rational financing remains one of the most pressing challenges in education systems. national legislation typically mandates that expenditures on education conforming to state standards are primarily funded by the government, which guarantees citizens’ rights to comprehensive general and vocational education [8]. analysis and results internationally, the primary source of financing for school education remains the state budget. budgetary allocations constitute the principal mechanism through which governments influence the development of educational systems. in countries characterized by high human development indices, such as sweden, norway, canada, and germany, education expenditures typically account for between 4 and 7% of gdp. this level of funding facilitates broad access to education, ensures availability of qualified teaching personnel, and supports the provision of modern educational materials and infrastructure. in many nations, financing for primary and secondary education is sourced from multiple levels of government—central, regional, and local. for instance, in the united states, approximately 90% of school funding is managed at state and district levels, supplemented by local property taxes. similarly, in the united kingdom, the government allocates targeted grants to schools based on student enrollment and specific needs through agencies such as the department for education. american journal of business management, economics and banking volume 37 june2025 p a g e | 3 www.americanjournal.org in the context of uzbekistan, expenditures on education, including school education, represent a substantial share of government spending. table 1. analysis of expenditures on school education in uzbekistan (2020–2024) [9] year school education expenditures (trillion uzs) total education expenditures (% of gdp) share of school education in total education expenditures (%) 2020 27.0 5.2 73 2021 32.0 5.4 68.7 2022 30.6 5.6 65.9 2023 42.9 5.5 64.8 2024 56.4 4.7 62.1 between 2020 and 2024, government expenditures on school education more than doubled, rising from 27.0 to 56.4 trillion uzs. this substantial growth indicates a prioritization of school education within national policy agendas, influenced by factors such as increased student enrollment, salary increments for educators, infrastructure modernization, and the implementation of updated educational standards. despite this increase in absolute spending, the proportion of total education expenditures relative to gdp exhibits variable dynamics. while remaining stable between 5.2 and 5.6% from 2020 to 2023, this indicator declined to 4.7% in 2024, falling below the unesco recommended threshold of at least 5%. such trends may be explained by: • a slower growth rate in education expenditures relative to gdp growth; • reallocation of government funds toward other sectors; • potential tightening of budgetary policies and expenditure controls. additionally, the proportion of school education within total education spending has declined from 73% in 2020 to 62.1% in 2024. this trend may reflect: • increased investment in other educational levels, including preschool, tertiary, and vocational education; • strengthening of adult education and professional development programs; • expansion of scholarship schemes and digital infrastructure for higher education institutions. while diversification of educational spending is generally positive, maintaining an appropriate balance is essential to prevent underfunding of general school education, which constitutes the core of the education system. table 2.sources of school education financing (% of gdp, 2023–2024) [10] country public expenditures (%) private expenditures (%) international sources (%) total expenditures (%) usa 4.3 0.8 0.1 5.2 finland 5.2 0.2 0.1 5.5 germany 3.9 0.7 0.1 4.7 france 4.5 0.5 0.1 5.1 japan 3.2 0.4 0.1 3.7 uk 3.8 0.6 0.1 4.5 canada 4.6 0.9 0.1 5.6 australia 4.3 1.0 0.1 5.4 south korea 3.7 1.1 0.1 4.9 sweden 5.7 0.4 0.1 6.2 american journal of business management, economics and banking volume 37 june2025 p a g e | 4 www.americanjournal.org leading nations consistently prioritize public financing of school education as a vital factor in fostering sustainable human capital development. data indicate that, in most developed economies, public budgets constitute the majority of school education funding, typically ranging from 3.8% to 5.7% of gdp (e.g., sweden at 5.7%, finland 5.2%, canada 4.6%, usa 4.3%). this demonstrates the strategic emphasis placed on education within fiscal policies. private expenditure also plays a meaningful role, especially in countries where competitive higher education admission and elevated educational aspirations drive demand for supplementary educational services such as tutoring, private schooling, and digital learning platforms. countries with the highest private shares include south korea (1.1%), australia (1.0%), and canada (0.9%). in contrast, private spending is minimal in northern european countries like finland and sweden, indicating broad access to high-quality free education. international financial contributions remain marginal, consistently around 0.1%, underscoring the selfsufficiency of education systems and limited reliance on external donors. notably, the total expenditure on school education in countries with top educational outcomes, as measured by international assessments such as pisa and timss, exceeds 5% of gdp—examples include sweden (6.2%), canada (5.6%), and finland (5.5%). these high investment levels correlate strongly with improved school readiness, teacher professionalism, modernized infrastructure, and inclusive educational environments, thereby exerting a positive influence on long-term socio-economic development. by comparison, uzbekistan’s school education expenditures in 2023 were approximately 3.4% of gdp, highlighting the need to increase funding and enhance its efficiency. although expenditures reached 56.4 trillion uzs (about 4.7% of gdp) in 2024, the share of school education within the total budget remains comparatively lower than in many developed nations. conclusions international experience confirms the dual role of governments as both the primary financiers of school education and coordinators of its strategic development. the effectiveness of public education policy is contingent upon: • ensuring sufficient budgetary funding levels; • employing flexible and responsive allocation mechanisms; • adopting results-oriented approaches; • providing targeted support for vulnerable student groups; • investing in educational infrastructure and innovation. national adoption of these principles can contribute to the formation of a sustainable, equitable education system responsive to contemporary challenges. uzbekistan is encouraged to target education funding levels of 5–6% of gdp, with particular emphasis on the school sector. however, increased funding alone is insufficient; attention must also be paid to the efficient use of allocated resources. recommendations • augment education expenditure as a proportion of gdp, aiming for 6% or higher to broaden development programs and enhance educational quality. american journal of business management, economics and banking volume 37 june2025 p a g e | 5 www.americanjournal.org • strengthen oversight of expenditure efficiency through systematic audits, performance evaluations, and timely adjustments to educational programs. • invest in technological infrastructure and human capital by expanding digital resources, enhancing teacher qualifications, and promoting modern pedagogical methodologies. • conduct comparative analyses of international best practices to adapt effective school financing and management models to the national context. references 1. education at a glance, 2022. report published by the organisation for economic co-operation and development (oecd). url: https://www.oecd.org (accessed: 23.04.2025). 2. education at a glance 2021. oecd publishing. oecd ilibrary. 3. global education monitoring report 2020: inclusion and education. unesco gem report. 4. patrinos, h. a., & velez, e. financing education in developing countries. the world bank, 2009. 5. hanushek, e. a., & woessmann, l. the knowledge capital of nations: education and the economics of growth. mit press, 2015. 6. dustmukhammad, kh. u. ways to organize effective financing of public education: phd dissertation. tashkent, 2012. 156 p. (in russian). 7. mirkhodzha, d. a. improving the financing of school education in uzbekistan: doctoral dissertation abstract. tashkent, 2021. 137 p. (in russian). 8. sharapova, m. a. practice of budget financing of public education system. scientific electronic journal "international finance and accounting". no. 3, 2020. 9. education spending in uzbekistan // theglobaleconomy.com. url: https://www.theglobaleconomy.com/uzbekistan/education_spending/ (accessed: 23.04.2025). 10. education expenditure source funding percentage gdp public private international // unesco institute for statistics. url: https://uis.unesco.org/en/glossary-term/education-expendituresource-funding-percentage-gdp-public-private-international (accessed: 23.04.2025). https://www.oecd.org/ https://www.theglobaleconomy.com/uzbekistan/education_spending/ https://uis.unesco.org/en/glossary-term/education-expenditure-source-funding-percentage-gdp-public-private-international https://uis.unesco.org/en/glossary-term/education-expenditure-source-funding-percentage-gdp-public-private-international american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 77 www.americanjournal.org directions for developing tourism activity through improving the tax system kamalova jamila phd, tashkent state university of economics a b s t r a c t k e y w o r d s the directions of development of tourism activity through improvement of the tax system were considered. the calculation of losses to the budget under the aos in 2022 as a result of reducing the turnover tax rate to 1 percent was analyzed. the dynamics of forecast values of the main economic indicators of the tourism sector for 2024-2030 were presented. tax system, hotel, tourist resource, tax incentives, tourism product. introduction based on the specific characteristics of the regions, in order to develop the service sector based on individual approaches, provide tourism businesses with financial resources and infrastructure, and introduce a favorable tax regime for them, the industry and service sector is developing rapidly in districts with a population of less than 300 thousand, taking into account the population size and density, geographical location, specialization, and level of infrastructure provision of the regions of the republic. it is possible to see the possibility of developing the sector by prioritizing trade, hospitality, catering and logistics services in the districts, as well as the provision of technical services and the organization of entertainment venues. research has shown that it would be beneficial to set the social tax rate at 1 percent for business entities engaged in retail trade and catering, hotel (accommodation) services, passenger and freight transportation by motor vehicles, repair and maintenance of vehicles, and services in entertainment venues if their income from these activities constitutes at least 60 percent of the total income at the end of the current reporting (tax) period. in addition, our analysis shows that the reduction of land tax and property tax rates on legal entities by 90% for service tourism entities, namely hotels (accommodation facilities) and shopping complexes with an area of over 5 thousand square meters (including the land plots they occupy) will lead to the development of their activities. in this case, it is necessary to apply this benefit to newly constructed facilities (including the land plots they occupy) for a period of 5 years from the month of their commissioning, and to grant the right to deduct the cost of buildings as depreciation expenses for 2 years when calculating profit tax. american journal of business management, economics and banking volume 31 december 2024 p a g e | 78 www.americanjournal.org analysis and discussion of results it is proposed to apply a special tax regime for business entities registered in tourism areas providing hotel (accommodation facilities), trade, catering, entertainment, tour operator and travel agent services, i.e. a 1 percent turnover tax rate to their taxation. (table 1). it is recommended to set the amount of property tax and land tax levied on legal entities for objects in these areas and the land plots they occupy at 1 percent of the amount calculated for these taxes . table 1. 2022 according to the analysis of the calculation of aos losses lose millions of soums. no. region name proposal completed privileged f a higher a t types according to number of enterprise s 2022 year calculation waiting for os ( privilege) i do n't understand . case a) a os what is the price of a stock ? 1 percent calculation of the balance waiting for os loss due to privilege (20 2 2) by total area : 14,090 77,534.2 44 198.6 -33 335.6 1 . karakalpakstan res . 700 7,597.0 4,506.6 -3,090.4 2 . andijan region 751 4 239.2 2,440.3 -1,798.9 3 . bukhara region 994 6 271.2 3,577.1 -2,694.1 4 . jizzakh region 867 5,471.8 3,070.4 -2 401.4 5 . kashkadarya region 1 159 5,691.3 3 182.2 -2,509.2 6 . navoi region 2,677 6,773.3 3,991.1 -2,782.2 7 . namangan region 1,000 6,988.6 4,027.9 -2,960.8 8 . samarkand region 896 3,258.4 1,875.6 -1,382.8 9 . surkhandarya region 340 3,044.7 1,806.2 -1 238.6 10 . syrdarya region 181 654.6 383.1 -271.5 11 . tashkent region 2 541 15,198.4 8 129.7 -7,068.8 12 . fagana region 403 2 109.4 1,198.1 -911.4 13 . khorezm region 1,581 10 236.0 6,010.4 -4 225.6 it is recommended to set the amount of property tax and land tax levied on legal entities for objects in these areas and the land plots they occupy at 1 percent of the amount calculated for these taxes . according to a comparative analysis of the employment rate in the tourism sector with the situation in foreign countries, in uzbekistan in 2022, 17 out of every 1,000 employed people worked in the tourism sector, while in the world, 100 out of every 1,000 jobs, in kazakhstan 49, in russia 56, in belarus 67, in iran 73, in azerbaijan 77, in kyrgyzstan 85, in malaysia 147, and in georgia 277 jobs, are in the tourism sector. considering the potential of existing tourism resources in our republic , it can be concluded that the achieved indicators are not satisfactory and that there is a large reserve of economic benefits in this area. the theoretical study and practical analysis of the level and effectiveness of tax incentives in the sector in the research work show that there are a number of issues that need to be resolved in this regard. in this research work, the impact of proposals to improve tax mechanisms in the tourism sector on the development of the tourism sector was forecasted based on various scenarios in the following stages: american journal of business management, economics and banking volume 31 december 2024 p a g e | 79 www.americanjournal.org at the first stage, the main economic indicators of the tourism sector for 2014-2023 were formed. an econometric model was developed to analyze the interrelationships of these indicators, and on its basis, forecast indicators for 2024-2030 were calculated using the econometric analysis program "stata". in the second stage, scenarios were developed related to the application of the proposals for improving tax mechanisms in the tourism sector presented in our research, and changes in the projected key economic indicators of the tourism sector were assessed in them. table 2 dynamics of forecast values of key economic indicators of the tourism sector for 2024-2030 2024 2025 2026 2027 2028 2029 2030 number of foreign tourists (mtbxts) (thousand people) 5778.0 6,760.3 7,605.4 8403.9 9093.0 9693.2 10294.2 export of tourism services (thxeh) (million dollars) 1133.2 1354.2 1570.9 1822.2 2088.3 2359.8 2647.6 employment in the tourism sector ( tsb ) (thousand people) 257.6 314.2 374.0 442.3 519.5 605.1 706.0 domestic supply in tourism industries (ttith) (billions of soums) 54810.6 65498.7 75978.5 88135.0 101002.7 114133.1 128057.3 the added value created directly in tourism (ttyaqqh) (billions of soums) 17180.9 20531.2 23816.2 27626.8 31,660.3 35776.3 40140.9 tourism's share in gdp (yaimtu) (percentage) 1.9 2.2 2.6 3.0 3.4 3.9 4.3 based on the algorithm implemented above, analyses were carried out using the "stata" model for each of the main indicators of the tourism sector, and their forecast indicators for 2024-2030 were calculated. (table 5) was calculated using an econometric analysis program. when calculating the forecast, external influences and the country's foreign policy were considered unchanged. according to it, all indicators have been moving at a steady growth rate since 2024, and the ranges of possible changes in the movement of forecast indicators in them have become different. in particular, the number of foreign tourists in 2020 was 1,504.1 thousand people, and in 2023 it was 4,697.6 thousand people, while according to the forecast results, the flow of foreign tourists to the country will increase from 5,778.0 thousand people in 2024 to 10,294.2 people in 2030. accordingly, the export of tourism services is projected to increase from 1,133.2 million in 2024 to 2,647.6 million in 2030. the employment rate in the sector is also projected to increase due to the increase in the number of foreign tourists and the expansion of domestic tourism offers. in particular, in 2021, due to the impact of the pandemic, the number of people employed in the sector decreased to 78.1 thousand ( 230 thousand jobs in 2019), while in 2024, due to the expected full recovery of the tourism sector, the number of people employed in the sector is projected to be 257.6 thousand, and by 2030, this figure will reach 706.0 thousand. according to the results of the analysis, if all the proposed measures to improve tax mechanisms for the development of the tourism sector are implemented, the tax burden on the tourism sector in 2023 will decrease from 30 percent to 18 percent. percent and the price of tourism products will also decrease accordingly. this will lead to a decrease in prices by 100%. as a result, the increase in the flow of american journal of business management, economics and banking volume 31 december 2024 p a g e | 80 www.americanjournal.org foreign tourists, according to the coefficient of price elasticity of demand, will be from 187.9 thousand to 375.8 thousand people. the export of tourism services will increase by at least 36.6 million dollars to 73.1 million dollars . as noted above, the targeted and targeted application of tax mechanisms and tax incentives in the tourism sector will lead to a reduction in the tax burden of industry entities and the prices of tourism products and services. this will increase the flow of domestic and foreign tourists and increase the demand for tourist services, and based on the resulting demand, will contribute to a positive change in the main economic indicators of the tourism sector . conclusion and suggestions tourism has the potential to provide employment, increase foreign exchange earnings, diversify the economy through a high multiplier effect, and also to recover in a short time and with fewer resources compared to other sectors of the economy in the process of overcoming natural and man-made crises . therefore , in foreign countries, in order to bring the national tourism sector to a higher level than competing countries , active reforms have been carried out to optimize the taxation of the sector, including the introduction of tax mechanisms . as a result, 46% of developing countries have introduced new tax incentives or further strengthened existing types of taxes over the past 6 years . the effectiveness of the tax system was assessed based on two indicators reflecting the level of implementation of the principles of taxation: efficiency and economy. therefore, not only is the tax burden for specific tourism sectors growing, but also its high relative to non-tourism and complementary tourism industries (for example, trade) estimates show that the current taxation system for tourism entities is not optimal. we propose to use an approach based on the concept of maximum excess tax burden in the formation of a rational system of taxation of tourism entities. references 1. lickorish lj & jenkins cl (2011) an introduction to tourism. new york: routledge; jayapalan n. (2001). an introduction to tourism. new delhi atlantic publishers and distributors. 2. morley, cl (1998). a dynamic international demand model. annals of tourism research, 25, 7084. 3. ritchie, jrb, & crouch, gi (2003). the competitive destination, a sustainable tourism perspective. wallingford, uk: cabi. roca j. (2014). evaluation of the effectiveness and efficiency of tax 4. benefits. institutional capacity and finance sector, discussion paper idb-dp136. idb. 5. seetharam, n. (2012). immigration and tourism demand: empirical evidence from australia. tourism management, 33(6), 1535-1543. 6. smeral, e. (2012). international tourism demand and the business cycle. annals of tourism research, 39(1), 379-400. 7. steshenko j.a., tikhonova a.v. (2018) an integral approach to evaluating the effectiveness of tax incentives. journal of tax reform, vol. 4, no. 2, pp. 157-173. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 71 www.americanjournal.org in the state budget in the financial legal regulation of uzbekistan: macroeconomic forecasts and development prospects ibrohimov behzodbek bahromjon o‘g‘li tashkent state university of law. master's student of the faculty of "master's degree and correspondence education". email:behzodbekibrohimov00@gmail.com a b s t r a c t k e y w o r d s this article provides an in-depth analysis of uzbekistan's state budget planning process for 2025. the article discusses key macroeconomic projections, including an expected 6 percent growth in the state budget. gross domestic product (gdp) is driven by industry, agriculture, and services. the government's approach to the budget is consistent with the "uzbekistan 2030" strategy and is aimed at ensuring sustainable economic growth, tax reform, and budget transparency. key policies include keeping the consolidated budget deficit below 3 percent of gdp, improving the tax base, and gradually aligning tax and budget policies with world trade organization (wto) standards. the article also discusses the importance of public participation in budget planning, ensuring environmental sustainability, and implementing the principles of "green budgeting." through these efforts, uzbekistan aims to ensure financial stability and long-term economic development. state budget, financial regulation, macroeconomic forecasts, uzbekistan, gdp growth, tax reform, budget deficit, "uzbekistan-2030", fiscal policy, sustainable development. introduction the financial and legal regulation of the state budget in uzbekistan plays a crucial role in ensuring the country's economic stability and growth. as uzbekistan continues its development under the framework of the “uzbekistan-2030” strategy, the state budget serves as a fundamental tool for achieving macroeconomic goals such as sustainable gdp growth, reducing the budget deficit, and improving public sector efficiency.[1] effective financial regulation involves a detailed and systematic process, encompassing fiscal policy, tax reforms, and the management of public debt, which are crucial for maintaining a balanced state budget.[2] macroeconomic forecasts are integral to the development of the state budget, providing key insights into expected economic growth, inflation rates, and sectoral performance. for instance, the forecasted 6% gdp growth in 2025, driven by advancements in industry, agriculture, and services, forms the american journal of business management, economics and banking volume 32 january 2025 p a g e | 72 www.americanjournal.org backbone of budgetary planning. the government’s efforts to manage tax policy reforms, increase revenue sources, and improve the overall financial ecosystem align with these forecasts. legal regulation of the budget ensures that all financial activities, including budget allocations, expenditure controls, and revenue generation, are in line with national laws and international standards. the government’s commitment to aligning the state budget with the principles of fiscal responsibility, environmental sustainability, and economic inclusivity is reflected in their efforts to modernize fiscal mechanisms. in this article, we will explore the macroeconomic forecasts, key financial regulations, and the legal framework surrounding the state budget of uzbekistan. we will also analyze the development prospects and the potential challenges uzbekistan faces in balancing growth with fiscal discipline. by understanding these components, we can assess the long-term sustainability and impact of the state budget on uzbekistan's economic trajectory.[3] analytical result the results of uzbekistan's financial and legal regulation of its state budget, guided by macroeconomic forecasts, demonstrate a positive trend toward economic growth and fiscal stability. the 2025 state budget is projected to support a 6% gdp increase, with key sectors such as industry and services leading the growth. the legal framework ensures fiscal discipline by setting clear tax policies and budgetary guidelines. the government’s efforts to increase revenue sources, manage public debt responsibly, and invest in sustainable development projects reflect in the budget’s alignment with national development goals and international financial standards. challenges remain, particularly in maintaining balance between growth and fiscal responsibility. as a result of our research, we will analyze the topic in more depth. a press conference dedicated to the draft law”on the state budget of the republic of uzbekistan " and the budget was held for 2025. on october 29 of this year, a press conference dedicated to the draft law of the republic of uzbekistan “on the state budget of the republic of uzbekistan for 2025”and the budget was held at the information and mass communications agency. a draft law of the republic of uzbekistan “on the state budget for 2025”was introduced to the committees of the legislative assembly of the republic of uzbekistan, as well as a budget. the draft law of the republic of uzbekistan “on the state budget of the republic of uzbekistan for 2025”consists of 17 articles and 10 annexes. the draft state budget for 2025 and the budget for 2026-2027 are developed on the basis of the forecast of the main macroeconomic indicators. in particular, a 6% increase in gross domestic product was projected in 2025. the projected growth rates of gdp are projected to be due to an increase of 6.1 percent in industrial production, 4.1 percent in agriculture, and 14.5 percent in market services. it is intended to achieve these development indicators by qualitatively continuing the structural reforms initiated in each area. the forecast parameters of the state budget for the medium term and the draft budget for 2025 are developed in harmony with the goals set in the uzbekistan – 2030 strategy, that is, based on the task of their implementation. american journal of business management, economics and banking volume 32 january 2025 p a g e | 73 www.americanjournal.org the main directions of tax-budget policy in the medium term: not to increase the consolidated budget deficit by more than 3% compared to gdp in 2025-2027; maintaining basic tax rates in the medium term without changing; expansion of the budget income base, revision and phase-out of the given tax, customs benefits depending on the effect and the result given; step-by-step harmonization of tax and budget policies with the requirements of the world trade organization; to take all measures so that the public debt does not exceed the macroeconomic safe level of 60 percent in relation to the gross domestic product, in which in the medium term it is not to exceed 50 percent in relation to gdp; step-by-step full-fledged implementation of the” result-oriented budget " system in the formation of the annual budget; increasing wages and pension amounts by no less than inflation; ensuring budget openness as well as further increasing the participation of citizens in the formation of the budget; improvement and strengthening of internal control and internal audit in the public sector; reflection of national sustainable development goals in the preparation and review of the draft state budget; step-by-step implementation of the principles of "green budgeting"; ensuring the priority of environmental and nature protection, climate change adaptation measures, measures to reduce water consumption and promote economy use; a complete revision of the structure of budget expenditures together with international experts. based on these goals and directions, state budget revenues for 2025 are set at ₹ 308.5 trillion and expenditures at ₹ 344.6 trillion (annex 1 of the bill). revenues of state target funds (excluding inter-budgetary transfers) are planned at the rate of 66.5 trillion so’m, and expenses at the rate of 117.2 trillion so’m. in this case, the allocation of transfers of rs 54.4 trillion from the republican budget of the republic of uzbekistan to state target funds is established (annex 3 of the draft law). in particular, it is planned to allocate a transfer from the state budget to the amount of 18.5 trillion so’m with non-budgetary pension fund revenues of 58.9 trillion so’m, expenses of 74.9 trillion so’m (position 3 of annex 3 of the bill). in order to increase budget coverage and ensure completeness in accordance with the international standards of public finance management, as of 2021, the planned expenditures on public programs at the expense of external debt have been included in the consolidated budget. in 2025, these costs are projected to be rs 18.8 trillion (annex 1 of the bill). taking into account the above, the upper limit of the deficit of the consolidated budget of the republic of uzbekistan for 2025 (including the state budget, state target funds, the fund for reconstruction and development, expenses associated with the implementation of state programs at the expense of external debt) is set at 3% or 49.3 trillion so’m per gross domestic product. in this case, the budgets of the state budget and state target funds are planned with a deficit of 32.4 trillion so’m or 2% on the projected gdp (appendix 1 of the bill). the deficit of the state budget and state target funds is compensated by the involvement of state domestic and foreign debts, funds from the privatization of state assets and other resources. american journal of business management, economics and banking volume 32 january 2025 p a g e | 74 www.americanjournal.org the expenditures of the republican budget of the republic of uzbekistan are approved in annex 5 of the draft law in the cross section of 60 first-class budgetary allocators (ministries and departments). in this case, in order to ensure the harmony of state programs with planned state expenditures, to strengthen public and parliamentary control over their implementation, the bill specifically states the funds allocated for state programs in the budget of allocators of first-class budgetary funds. for example, among the current expenses of the ministry of preschool and school education of the republic of uzbekistan, 11 are listed, 23 are allocated in the ministry of health, 17 are allocated in the ministry of agriculture, 10 are allocated for state programs and events in separate lines. the budget of the republic of karakalpakstan, the income and expenses of the local budgets of the regions and the city of tashkent are being adopted for information in accordance with appendix 6 of the draft law. in accordance with article 27 of the budget code of the republic of uzbekistan, the costs of local budgets are formed independently by the council of ministers of the republic of karakalpakstan, the regions and tashkent city halls in the cross section of allocators of the funds of the khudy budget, and are approved, respectively, by the jogorgi kengesi of the republic of karakalpakstan, according to annex 7 of the bill, inter-budgetary transfers of 18.4 trillion rubles of the republican budget are being transferred to the budget of the republic of karakalpakstan, local budgets of regions and tashkent city. due to the fact that the upper limit of the consolidated budget deficit in 2025 is set at 3 percent, the limited volume of new annual signable agreements for attracting foreign debt is us $ 5.5 billion, of which in support of the state budget-3 billion. us dollar, for financing investment projects-2.5 billion. us dollars are being set. also, in order to diversify the portfolio of public debt and reduce foreign exchange risks, it is planned to set a limited net size of state securities issued on behalf of the republic of uzbekistan for 2025 at the rate of 30 trillion so’m. in addition, in order to reduce the risks to the state budget, the upper limit of the value of new projects to be signed on the basis of all public-private partnership principles that require the issuance of stateaccepted obligations (purchase or payment) and letters of approval is set at us $ 6.5 billion. section 12 of the act sets out the sources of income of local budgets, as in previous years. including: property and land tax from individuals, income tax from individuals paid by individuals based on the annual income declaration from renting out property, as well as income tax from individuals paid by individual entrepreneurs, tax on the use of water resources, tax on the use of the subsoil on nonbuilding materials, tax on turnover, in addition to large taxpayers, at least 50% of income tax revenues from property and land taxes of legal entities and income tax from individuals, as well as revenues from the rental of state assets to the budgets of districts and cities; property and land taxes from large taxpayer legal entities, excise taxes on the realization of gasoline, diesel fuel and gas to final consumers, as well as other types of taxes of this kind are transferred in full to the republican budget of the republic of karakalpakstan, regional budgets of the regions and the city budget of the city of tashkent. in this case, the right to distribute taxes and other types of income, as well as inter-budgetary transfers, which are allocated to local budgets of the relevant level by the jocarg kengesi of the republic of karakalpakstan, the regions of people's deputies, the councils of the tashkent city, is maintained. american journal of business management, economics and banking volume 32 january 2025 p a g e | 75 www.americanjournal.org the revenues of the republican budget are confirmed by appendix 4. in particular, the income in terms of value added tax is projected to be 71.8 trillion so’m (expected execution in 2024 – 60.7 trillion so’m). according to article 13 of the draft law, the specifics of the implementation of the expenditures of the state budget of the republic of uzbekistan in 2025 are established. including: the costs of paying child benefits and material assistance to low-income families, maintaining system organizations of the national agency for social protection (children's and orphanages, sectors of work with minors and family children's homes), water management organizations are leaving the procedure for financing from the republican budget unchanged.[4] it is also established that the costs of construction and repair and equipment of preschool educational and general educational organizations and specialized schools of the republic of karakalpakstan, regions and tashkent city will be financed from the republican budget of the republic of uzbekistan. also, table 1 reflects the volume of total per capita income in the cross-section of the regions of the republic of uzbekistan in 2020-2023. table 1: the volume of total per capita income in the cross section of the regions of the republic of uzbekistan t/r regions 2020 2021 2022 2023 1 o‘zbekiston republic (thousand so’m ) 12122,2 14869,8 17772,8 20015,9 2 qoraqalpog‘iston republic (thousand so’m ) 9436,6 11286,5 13266,1 14570,7 3 andijon county (thousand so’m ) 10765,9 12946,1 15910,1 18257 4 buxoro county (thousand so’m ) 14675,5 18133,4 21470,5 23480,3 5 jizzax county (thousand so’m ) 10951,7 13244 15090,6 17326,2 6 qashqadaryo county (thousand so’m ) 10199 12180,8 14610,8 16095,1 7 navoiy county (thousand so’m ) 19922,5 24765 27129,1 31445,6 8 namangan county (thousand so’m ) 9258,8 11353,5 13782,5 15070,6 9 samarqand county (thousand so’m ) 10522,8 12919 15437,1 16886,8 10 surxondaryo county (thousand so’m ) 9745 11824,1 14520,4 15811,6 11 sirdaryo county (thousand so’m ) 10938,3 12794,6 14635,8 16808,3 12 toshkent county (thousand so’m ) 13129,4 16260 18319,2 20730,2 13 farg‘ona county (thousand so’m ) 8853,5 11276,9 13844,4 15716,5 14 xorazm county (thousand so’m ) 12270,6 15756,4 19541,5 20076,6 15 toshkent shahri (thousand so’z ) 25543,6 30511,1 37079,7 44427,9 when analyzing table 1, it is seen that in the period from 2020 to 2023, a constant increase in total income is indicated. revenue for the republic was 12,122.2 thousand in 2020, while in 2023 it was 20,015. 9 thousand. american journal of business management, economics and banking volume 32 january 2025 p a g e | 76 www.americanjournal.org the highest revenue by region is recorded in tashkent city, which has increased from 25,543.6 thousand so’m in 2020 to 44,427. 9 thousand so’m in 2023. the lowest was 8,853.5 thousand in fergana county in 2020 and 15,716. 5 thousand in 2023. navoi county is also characterized by high growth rates, with revenue volumes rising from 19,922.5 thousand so’m in 2020 to 31,445. 6 thousand so’m in 2023.[5] the table above reflects the continuation of economic growth in all regions and significant differences in income in the cross section of regions. at the same time, the city of tashkent and the city of navoi are distinguished by the highest income indicators. this indicates the need to take into account various factors affecting the economic development of the regions. in diagram 1 below, we can see dramas in the cross section of regions more earmarked, and through the budget project above, the development of the regions discussion the discussion on the financial and legal regulation of uzbekistan's state budget centers on the country’s macroeconomic forecasts and its strategic development prospects. the government's focus on achieving a 6% gdp growth in 2025, primarily driven by industrial and service sectors, highlights the importance of targeted investments and structural reforms. while the legal framework provides stability through clear tax policies and budgetary regulations, challenges remain, particularly in balancing fiscal discipline with economic growth objectives.[6] the budget prioritizes essential areas such as infrastructure development, public services, and environmental sustainability, reflecting alignment with the national “uzbekistan – 2030” strategy. however, the execution of these plans depends on the effective management of public debt, with the state ensuring it does not exceed 50% of gdp. additionally, while budget transparency is emphasized, the gradual implementation of resultsbased budgeting and green budgeting principles will play a key role in ensuring long-term sustainability.[7] american journal of business management, economics and banking volume 32 january 2025 p a g e | 77 www.americanjournal.org conclusion uzbekistan's financial and legal framework for state budget regulation demonstrates a commitment to fostering sustainable economic growth while ensuring fiscal discipline. the 2025 state budget, aligned with macroeconomic forecasts and the "uzbekistan-2030" strategy, emphasizes balanced development through prudent management of public finances and targeted investments. key policy directions, such as maintaining a budget deficit under 3% of gdp, stabilizing public debt within safe limits, and implementing "green budgeting" principles, reflect the government's forward-looking approach. the projected 6% gdp growth for 2025, driven by industrial, agricultural, and service sector expansions, underscores the effectiveness of these measures. additionally, the budget’s focus on inclusivity, transparency, and public participation enhances its alignment with global best practices. however, the need to optimize tax policies, phase out inefficient subsidies, and strengthen institutional capacity remains critical for sustaining progress.[8] by integrating fiscal policies with environmental and social objectives, uzbekistan's budget regulation sets a precedent for balancing economic advancement with societal well-being. as the nation continues to refine its macroeconomic policies, it holds the potential to achieve robust and inclusive development. these strategies are pivotal not only for meeting short-term targets but also for laying a solid foundation for long-term economic resilience and prosperity. references 1. o‘zbekiston respublikasi prezidentining farmoni, 11.09.2023 yildagi pf-158-sonli. 2. o‘zbekiston respublikasining «2023 yil uchun o‘zbekiston respublikasining davlat budjeti to‘g‘risida»gi qonuni ijrosini ta’minlash chora-tadbirlari to‘g‘risida 2022 yil 30 dekabr pq-471. 3. o‘zbekiston respublikasining budjet kodeksi 01.01.2014. 4. www.imv.uz 5. stat.uz 6. hojiyev, e., kamalov, o., & artikov, b. (2012). moliya huquqi. ma’ruzalar kursi. toshkent. 7. shukurov, t. i., & malikov, m. (2024). o ‘zbekiston respublikasida moliya tizimi va uning mamlakat iqtisodiyotida tutgan o ‘rni. educational research in universal sciences, 3(1), 395-402. 8. dilmurod o‘g‘li, t. e. (2024). soliq huquqining mamlakatimizdagi iqtisodiyhuquqiy munosabatlarni tartibga solishdagi roli. innovation in the modern education system, 5(42), 266-271. 9. akbarali o‘g‘li, s. f., & abduqaxxor o‘g‘li, q. x. (2024). xalqaro iqtisodiy munosabatlarning huquqiy asoslari. лучшие интеллектуальные исследования, 17(4), 241-245. 10. rivojiddin o'g'li, n. m. (2024). o'zbekistonda islom moliyasi. scientific approach to the modern education system, 3(27), 37-39. 11. jurayevich, m. b., & ibroximovich, r. b. (2020). determination of the level of risks in investment projects using econometric model. international journal of business, law, and education, 1(1), 17-25. 12. rahimov, b. i., yoldashev, b. s., & ibrahimov, b. b. (2023). the need to organize a cluster in the agricultural network. international journal of management and economics fundamental, 3(02), 9-19. http://www.imv.uz/ american journal of business management, economics and banking volume 32 january 2025 p a g e | 78 www.americanjournal.org 13. mardonakulovich, b. m., & ibroximovich, r. b. (2021). analysis of monitoring and fulfillment of credit obligations in commercial banks. international journal of business, law, and education, 2(2), 51-57. 14. juraevich, m. b., mardonakulovich, b. m., & ibroximovich, r. b. (2021). basic concepts of the theory of uncertain sets and actions related to investment processes. international journal of business, law, and education, 2(1). 15. rahimov, b. i., yoldashev, b. s., & ibrahimov, b. b. (2023). the need to organize a cluster in the agricultural network. international journal of management and economics fundamental, 3(02), 9-19. 16. ibrahimovich, r. b., ugli, i. b. b., & ugli, i. b. b. (2023). innovative reforms in agriculture development. the american journal of management and economics innovations, 5(03), 9-13. 17. rahimov, b. i., yoldashev, b. s., & ibrahimov, b. b. (2023). the need to organize a cluster in the agricultural network. international journal of management and economics fundamental, 3(02), 9-19. 18. рахимов, б. и., & иброхимов, м. б. о. (2021). моддий-техника ресурслари бозорини институционал тузилмаси ва ресурслар самарадорлигини баҳолашнинг услубий асослари. журнал инновации в экономике, 4(7). american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 66 www.americanjournal.org developing insurance investments based on esg and green finance standards in local and global markets zoyirov laziz subkhonovich independent researcher, tashkent state university of economics a b s t r a c t k e y w o r d s in the insurance sector, the integration of esg (environmental, social and governance) standards and green finance concepts is becoming increasingly important in increasing the sustainability of investment portfolios. investment management processes based on these principles are developing in global and local markets, helping to reduce environmental risks and strengthen social responsibility. green bonds, climate funds and other green financial instruments are emerging as key tools for insurance companies to implement sustainable investment strategies. thus, esg and green finance standards are improving the financial performance of insurance investments and contributing to sustainable development goals. insurance investments, esg standards, green finance, sustainable investments, green bonds, investment portfolio optimization, green funds. introduction in recent years, issues of sustainability and environmental protection have become increasingly relevant in the global economy. in particular, the insurance sector is paying great attention not only to increasing financial efficiency, but also to minimizing social and environmental risks by introducing esg (environmental, social, governance) standards and “green finance” concepts in the management of investment portfolios. esg principles play an important role in the selection of financial instruments of insurance companies, risk assessment and ensuring sustainable development. at the same time, green financial instruments, including green bonds and climate finance funds, serve to strengthen the sustainability of insurance investments. these processes are shaping their own development paths in different regulatory and economic conditions in local and global markets. thus, the trends of integrating esg and green finance standards into insurance investments play an important role not only in ensuring financial security, but also in creating a sustainable and socially responsible economic system. in modern financial systems, sustainability principles and social responsibility concepts are becoming an integral part of financial activities. especially for the insurance sector, esg (environmental, social, governance) standards and green finance concepts require new approaches to the formation of investment portfolios. esg principles allow reducing financial risks and increasing investment efficiency by ensuring environmental protection, social justice and effective governance. green american journal of business management, economics and banking volume 40 september2025 p a g e | 67 www.americanjournal.org financial instruments are also being accepted as an important instrument in achieving sustainable development goals. regulatory, legal and economic conditions in local and global markets have a specific impact on the integration of esg and green finance standards. therefore, identifying and implementing effective ways to develop insurance investments based on esg and green finance principles is an urgent task not only to ensure financial stability, but also to strengthen social and environmental sustainability. according to kiran sood and ercan özenlar, “by integrating esg principles into insurance activities, companies increase sustainability, competitiveness and financial performance. in our opinion, this approach not only strengthens the company's internal governance system, but also reduces negative environmental impact, increases social responsibility and forms reliable corporate governance. in addition, insurance companies operating taking into account esg criteria gain the trust of investors and customers, which further strengthens their position in the market. alex edmans' research shows that for insurance companies, incorporating esg factors into their investment portfolio creates long-term value and improves financial results. indeed, investment decisions based on esg criteria not only take into account social and environmental aspects, but also allow them to manage risks and provide a reliable, stable income stream. this, in turn, increases the reputation of the company and strengthens trust among customers and investors. according to michael greenstone, in the insurance sector, it is necessary to adapt investment portfolios to climate change and environmental risks esg-based models are important for adaptation. we believe that such an approach allows insurance companies to identify, assess and manage systematic environmental risks in advance. especially in the current context, where the impact of climate change on natural disasters, property and health insurance markets is increasing, esg models are becoming increasingly important. according to edward barbier, through green finance, insurance companies can ensure that their investment portfolios are environmentally and socially sustainable. we believe that this approach increases not only the financial sustainability of the insurance industry, but also its responsibility to the environment and society. by including green financial instruments, in particular green bonds and investments aimed at sustainable development, insurance companies support climate-resilient, environmentally friendly projects. today, global financial markets are increasingly focusing on adopting sustainability and social responsibility principles. especially for the insurance sector, esg (environmental, social, governance) standards and green finance concepts have become an integral part of investment activities. the implementation of esg principles not only increases the safety and efficiency of investment portfolios, but also contributes to socially and environmentally sustainable development. at the local and global levels, this process develops in different directions and is determined by the specific regulatory, economic and cultural environment. for insurance companies, the successful integration of esg and green finance standards is an important tool for improving investment strategies, effectively managing risks and achieving sustainable financial growth. therefore, identifying and improving ways to develop insurance investments based on esg and green finance standards in local and global markets is considered an urgent task. american journal of business management, economics and banking volume 40 september2025 p a g e | 68 www.americanjournal.org figure 1. ways to develop insurance investments based on esg and green finance standards in local and global markets integrating esg standards and green finance concepts into insurance investments is important not only for ensuring financial stability, but also for increasing social and environmental responsibility. to develop these principles in local and global markets, it is necessary to strengthen the regulatory framework, train qualified personnel, reform investment policy, and introduce modern technologies. at the same time, it is necessary to create sustainable investment mechanisms that meet international standards through cooperation and exchange of experience. these areas will allow insurance companies to effectively manage risks and achieve sustainable financial growth, which is an important factor in economic development and environmental protection. thus, the introduction of esg and green finance principles into insurance investments is an important foundation for the formation of a sustainable and socially responsible financial system in the future. the insurance market is a key tool for risk management. reinsurance is a tool for insurance companies to manage large or unexpected losses and ensure stability. in this analysis, we will analyze the amount of insurance premiums collected from reinsurance in 2018-2024. improving the regulatory framework. developing and updating laws and regulations to implement esg and green finance principles, mandating and standardizing esg reporting by insurance companies, creating taxation and subsidy systems that encourage sustainability professional development and staff training. organization of training and professional development programs for specialists in esg and green finance, conducting trainings aimed at improving the knowledge and skills of insurance specialists in these areas cooperation and exchange of experience. strengthen cooperation with local and international financial institutions, esg organizations, study international experiences in esg and green finance and adapt them to local conditions raising social awareness and strengthening awareness. explaining the importance of esg and green finance to all participants in the insurance market, developing marketing and communication strategies that promote sustainability development of information and communication technologies. implementation of modern it solutions for collecting, analyzing and reporting esg data, creation of information exchange platforms between insurance companies and investors reshaping investment policy based on esg principles. aligning investment portfolios with sustainability criteria, increasing focus on sustainable financial instruments such as green bonds and climate finance funds, and improving asset selection by introducing esg ratings and assessment systems american journal of business management, economics and banking volume 40 september2025 p a g e | 69 www.americanjournal.org figure 2. the volume of insurance premiums collected under reinsurance contracts in million soums from 2018 to 2024, the volume of premiums increased by almost 19 times. this indicates that the insurance market is growing and the need for reinsurance services is increasing. in the transition from 2023 to 2024, the volume of premiums increased by almost 2 times. this may be due to new projects, investments or changes in legislation. the significant increase in the volume of reinsurance premiums during 2018-2024 indicates that insurance companies are striving to manage risks more actively. this confirms the growing confidence among market participants, as well as the growing importance of insurance services the process of introducing esg and green finance standards in the insurance sector has its own characteristics not only in global financial markets, but also in local markets. globally, in developed countries, esg principles are regulated by strict legislation and standards, which encourages insurance companies to develop sustainable investments. at the same time, the widespread use of green financial instruments allows for the diversification of investment portfolios and risk reduction. in local markets, especially in developing countries, the introduction of esg and green finance concepts is still taking place gradually, and the creation of a legal framework and infrastructure is important. by taking esg principles into account in the investment policies of insurance companies, they can reduce risks related to climate change and increase confidence in the eyes of customers and investors. at the same time, new opportunities are emerging in the insurance sector through the use of green financial instruments, which helps to form sustainable and responsible investment portfolios. integrating esg and green finance standards into insurance investments not only improves financial stability and risk management, but also increases social and environmental responsibility. to develop these principles in local and global markets, it is necessary to strengthen the regulatory framework, train specialists, revise investment policies and introduce modern information technologies. these areas will allow insurance companies to achieve sustainable financial growth, reduce environmental risks and strengthen social trust. thus, the introduction of esg and green finance concepts in the 207038.7 304421.1 325759.2 691052.5 1138465.5 1937202.5 3863497.5 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 2018 2019 2020 2021 2022 2023 2024 american journal of business management, economics and banking volume 40 september2025 p a g e | 70 www.americanjournal.org insurance sector is of great importance in forming a sustainable and responsible financial system. esg (environmental, social and governance) criteria and green finance have become important financial and social trends for global markets in recent years. esg principles include policies aimed at improving the environment, increasing social responsibility and ensuring effective management. green finance, in turn, represents financial practices aimed at environmentally friendly and sustainable investments. the implementation of esg principles in the insurance market, in turn, will help to manage investment decisions, assess risks and achieve sustainable development goals. today, local and global insurance companies aim to ensure their long-term development by implementing esg and green finance standards in their activities. attracting green investments is also of great importance for creating economic sustainability by protecting the environment and increasing social responsibility. growth of the green finance market. global investments in green finance will exceed $500 billion per year by 2023. green bonds, esg indices and other environmentally sustainable financial instruments are increasingly expanding. the volume of investments made through esg principles accounted for 25% of the global market in 2023, which is almost 5% higher than in 2022. by 2020, the global amount of green bonds reached $1 trillion and is expected to reach $3 trillion by 2025. investments made based on esg (environmental, social and governance) principles increased by 35% by 2021 and this trend is still continuing. the development of esg and green investments in the insurance sector. insurance investments based on esg and green finance principles are growing in the global insurance market. green insurance and sustainable insurance products (for example, insurance for environmentally friendly homes) are becoming increasingly widespread. at the same time, insurance companies that comply with esg principles are using new methods to assess their risks, including: between 2019 and 2023, the volume of investments in the esg and green insurance market increased by an average of 20%. demand for green insurance products has grown significantly in the european and north american markets. for example, investments in green insurance products in europe reached 8 billion euros in 2022. differences between countries in the global esg and green finance markets. the european union (eu) is the most advanced region in promoting its esg policies. by 2021, investment flows based on esg principles in the eu accounted for 50% of the global amount. investments in esg insurance and green bonds in europe are expected to reach 1 trillion euros by the end of 2023. the united states is also actively participating in the development of the esg market, but the investment volume may be smaller compared to europe. however, policies and regulations on esg and green finance have grown rapidly since the early 2020s. esg investments in the us exceeded $350 billion by 2023. the asia-pacific region is also actively participating in the expansion of esg and green finance markets, especially in countries such as china and south korea. green bond investments in china grew by an average of 2025% per year in 2020-2023. esg risk assessment in insurance markets. esg-based risk assessment methods are developing by insurance companies. esg integration helps insurance companies identify new types of risks (environmental, social and governance risks). by 2023, more than 40% of global insurance companies will apply esg principles in their risk assessment. companies that have embarked on green insurance and esg integration are seeking to ensure long-term sustainability by protecting themselves from environmental risks (such as climate change) and social uncertainties. global trends in green finance and esg: global esg investments will reach $7 trillion by 2023, which is 2 times more than in 2020. the growth of green finance and esg markets is playing a key role in tackling climate change and american journal of business management, economics and banking volume 40 september2025 p a g e | 71 www.americanjournal.org achieving sustainable development goals. by 2023, more than 60% of investment firms will have integrated esg principles. conclusion the development of insurance investments based on esg and green finance principles in domestic and global markets will help ensure long-term economic and environmental sustainability. the implementation of esg standards will allow insurance companies to correctly assess risks, create sustainable and responsible investment strategies. global trends in green finance will also encourage the insurance sector to adopt environmentally and socially responsible investments. as a result, the stability of the insurance market and the environmental and social well-being of society will increase, which will support economic growth in the long term. the rapid growth of esg and green finance markets around the world is also reflected in the global insurance sector. the development of insurance investments based on esg principles serves the goals of reducing negative environmental impacts, providing social benefits to society, and ensuring sustainable governance. the global growth of green finance is forcing insurance companies to better understand new opportunities and risks. these trends are essential for achieving sustainable economic development. references 1. sood, k., & özen, e. (2024). systematic literature review of esg practices in insurance sector. 2. edmans, a. (2022). the end of esg. oxford business law blog. 3. greenstone, m., & jack, b. k. (2015). envirodevonomics: a research agenda for an emerging field. journal of economic literature, 53(1), 5–42. (university of chicago). 4. barbier, e. b. (2010). a global green new deal: rethinking the economic recovery. cambridge university press. 5. diamond, douglas w. "financial intermediation and delegated monitoring." working paper, graduate school bus., univ. chicago, 1980. 6. dybvig, philip h..andjaynes, g. "microfoundations of wage rigidity." working paper, yale univ., 1980. 7. dybvig. philip h., and spatt, chester s. "adoption externalities as public goods." j. public econ. (in press). american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 38 www.americanjournal.org capitalization level of commercial banks: theory and practice mirzayev mirza abdullayevich phd., associate professor tashkent state university of economics a b s t r a c t k e y w o r d s in the article, at the current stage of the liberalization and modernization of the economy in the republic of uzbekistan, the priority tasks of the banking system reform strategy are researched and the necessity, means, factors and effective measures of attracting private capital to the banking system are scientifically justified. in commercial banks, on the basis of capital attraction and improvement, it covers the need for monetary resources to carry out asset operations, primarily credit operations. banks have limited opportunities to attract funds, and in all countries this process is regulated by the central bank. the borrowed funds make up the main part of the credit resources of commercial banks. bank, private capital, banking system, strategy, level of bank, banking system resource, capitalization, finance. introduction in the address of the president of the republic of uzbekistan to the oliy majlis on january 24, 2020, it was stated that the development of financial markets, including the stock market, should be one of our main goals in the new economic conditions, as well as the position and reputation of the international financial markets in the future. by introducing new financial instruments and issuing bonds in our country in cooperation with the leading international investment banks of developed countries, in particular, "j.p. morgan", "citibank", "deutsche bank", further expanding the scope of banking services, or the need to develop the banking system based on information technologies [1]. in addition, bold steps are being taken to gradually reduce the state share in the capital of banks, to create a healthy competitive environment in the system sector through the privatization of banks, to improve the quality of service, and to improve the quality and culture of lending in all respects. the efficiency and continuity of commercial banks' activity depends first of all on how adequately they are provided with resources. the financial resources of commercial banks are attracted on the basis of certain conditions and are formed from the bank's own funds and are directed to active operations in order to generate the bank's income. raised funds cover the need for cash resources to carry out active operations, primarily credit operations. american journal of business management, economics and banking volume 26 july 2024 p a g e | 39 www.americanjournal.org 2. literature review it examines the role of banking capital in the conduct of monetary policy in india in the period after the global financial crisis, based on the theories of foreign scholars. empirical results show that banks with a high ratio of capital to risk-weighted assets (crar) attract funds at a lower cost. in addition, banks with high crars transmit monetary policy impulses smoothly, while stressed assets in the banking sector hinder transmission. recapitalization to increase crar can improve transmission; however, crar may not help for banks above a certain threshold level due to reduced sensitivity of loan growth to the monetary policy rate. therefore, it is stated that the monetary policy can affect the credit supply depending on the capital situation of the banks (muduli s., behera h., 2023). most importantly, bank capital is an important evidence that policy uncertainty can improve the impact of bank economic performance and performance. in general, bank capital adequacy can reduce the negative impact of policy uncertainty on the banking industry through stabilization measures (mendy l. l., yang s. y., shi w. z., 2023). economist frank hunt writes, “the capitalization rate can be determined by dividing annual net operating income by the cost of a piece of property. this formula is important for determining the return on investment that an investor can hope to realize. as the level of capitalization increases, the decrease in the appreciation of the asset. marking has been argued to be inversely related to the price/earnings multiple for the same asset (frank hunt, 2021). according to local scientists o.i.lavrushin, u.o.azizov, t.m.karaliyev, "the resources of credit organizations are the sum of their own and borrowed resources at the bank's disposal, which are used in the implementation of asset operations. bank resources are reflected in the passive part of the balance sheet of credit organizations" (lavrushin o.i., azizov u.o'., karaliyev t.m, 2019). in our opinion, it is appropriate to provide a broader explanation of the composition of funds equaled to own funds by our above scholars in their views on the bank's resource base. according to one of our local scientists, professor sh. z. abdullaeva, "the resource base of commercial banks determines the level of their credit potential. the resource base created by the bank can be directed to provide various loans and finance investments and other asset operations" (abdullayeva sh.z., 2019). professor a.a. in his research, omonov stated that "resources of commercial banks are the financial value formed due to the attraction of free funds in the economy and the formation of private funds (capital) under certain conditions" (omonov a.a., 2008). emphasizes. u.d. artykov "bank resources are a set of reserves and opportunities that can be used for the implementation of banking activities within the framework of the bank's policy, consisting of the bank's own funds and borrowed funds, which are the basis for the bank's income" (ortikov u.d., 2008) considers it as of course, while supporting the definition given by the authors, we think that special attention should be paid to the bank's resource base. at the same time, a number of foreign economists, including k. bainke, y. vasilishen, a. gryaznova, y. dolan, v. kolesnikov, j. matuk, g. panova, have discussed the issues of attracting financial resources and increasing the level of capitalization of commercial banks. it was reflected in the scientific research of d. sinke. special aspects of this issue are reflected in the scientific works of uzbek economists y. abdullaev, a. kamolov, i. toymukhamedov, o. rashidov, o. olimjonov, a. kadyrov. american journal of business management, economics and banking volume 26 july 2024 p a g e | 40 www.americanjournal.org 3. research methodology. at the stage of widespread use of innovations in today’s banking and financial system, economic research methods such as data collection, analysis, synthesis and logical thinking of the electronic money system have been widely used to improve the services of commercial banks in the country. 4. analysis and discussion of results. in fact, only private banks with a solid resource base will have the opportunity to further strengthen customer confidence while ensuring their liquidity and financial stability. therefore, in strengthening the resource base of private banks, the main attention is paid to the sources of funds in the liabilities of the bank balance. first of all, it is necessary to study the composition of the resource base of a private bank. figure 1. the composition of the resource base of private banks [2] deposits make up the main part of the attracted funds of banks. deposit operations are called deposit operations in banks for the purpose of achieving goals. deposits are beneficial not only to the depositor, but also to the bank. through many deposits, the loan capital of the bank is formed, and then the bank lends to various economic sectors on favorable terms. the difference between deposit and loan interest is the bank's margin (premium) for attracting free funds and deploying loan capital. bank liabilities are a source of organization of bank resources, and its size depends on several factors. these are: ✓ activities of banks carried out at the expense of their own funds; ✓ the policy of the central bank in the field of monetary and credit policy management; ✓ attracted funds of the bank and their composition; ✓ the amount of mandatory reserve transferred by the commercial bank to the central bank; ✓ other passives. american journal of business management, economics and banking volume 26 july 2024 p a g e | 41 www.americanjournal.org deposit accounts can be different, and their classification is based on the source of deposits, their target orientation, level of profitability and other similar criteria. in most cases, resources are classified in terms of their owners. in particular, deposits are made by legal entities (enterprises, organizations) and individuals. based on the practice of foreign banks, the main resource base of commercial banks is their deposit resources. demand deposits are cheap, but unstable funds in term of deposits of commercial banks. term and savings deposits attracted by banks are stable, but expensive funds. table 1 below presents an analysis of the composition and dynamics of deposit resources of commercial banks operating in the republic of uzbekistan by term. the main part (40-45 percent) of the deposit funds of commercial banks operating in our country belongs to demand deposits. in 2019, demand deposits made up 42.7 percent of total deposits (29 trillion soums). 5.3 percent from 1 day to 30 days, 12.5 percent from 30 days to 180 days, 12 percent from 30 days to 180 days, and 27.4 percent from 1 year to 27.4 percent. in 2020, compared to 2019, the volume of deposits will be 30 percent or 21 trillion. increased to soums. in 2020, the total volume of deposits is 91 trillion. amounted to soums and 38.7 percent (35.2 trillion soums) consisted of demand deposits. deposits from 1 day to 30 days accounted for 3.4 percent, deposits from 30 days to 180 days accounted for 12.8 percent, deposits from 30 days to 180 days for 12 percent, and deposits over 1 year accounted for 32.4 percent. in the period from 2021 to 2020, the composition of deposits increased by 26% to 114.7 trillion. reached soums. in 2021, demand deposits accounted for 42.8 percent (49.1 trillion soums) and deposits over 1 year accounted for 27.5 percent (31.5 trillion soums). deposits from 1 to 30 days were 5.3%, 12.4% from 30 to 180 days, and 12% from 30 to 180 days [3]. each commercial bank independently determines the level of deposit interest rates based on the central bank of the republic of uzbekistan account rate, the state of the money market and its own deposit policy. the amount of income for different forms of deposit schemes depends on the term of the deposit, the amount, the nature of the account, the size and nature of the services and, finally, on the client's compliance with the terms of the deposit agreement. table 1 balance of deposits of commercial banks as of january 1, 2019-2023 (billion soums) [4] the date total by terms until requested from 1 day up to 30 days from 30 days up to 180 days from 180 days up to 365 days from 1 year high 01.01.2019 70 001 29 912 3 711 8 785 8 422 19 171 01.01.2020 91 009 35 189 3 133 11 654 11 523 29 511 01.01.2021 114 747 49 153 6 081 14 207 13 749 31 556 01.01.2022 156 190 66 129 5 291 18 780 20 826 45 164 01.01.2023 216 738 92 553 4 463 25 587 26 855 67 280 156.2 trillion by commercial banks in 2022. 42.3 percent (66.1 trillion soums) of deposits were attracted, and 28.9 percent (45.2 trillion soums) were deposits for more than 1 year is coming. as of january 1, 2023, there has been more growth than in previous years. in 2023, the net growth will be 38.7 percent or 60.5 trillion. amounted to soum. the high share of unclaimed deposits in the resource base of commercial banks indicates the weakness of the resource base and the presence of conflicting situations in the effective management of resources. in particular, the shortage of funds in representative accounts, insufficient satisfaction of customers' american journal of business management, economics and banking volume 26 july 2024 p a g e | 42 www.americanjournal.org demand for cash, and existing problems in meeting the need for resources necessary for financing effective projects are among these. for example, in 2021, the share of funds held until demand in the composition of deposit funds was 21.2% in the commercial banks of the usa, 29.5% in the commercial banks of kazakhstan, and 14.4% in the german banking system. in the practice of our country, it was 42.7% in 2019, 38.7% in 2020, 42.8% in 2021, 42.3% in 2022, and 42.7% in 2023. as can be seen from the above data, demand deposits in commercial banks of economically developing countries are 2-3 times lower than in our country. this situation means that commercial banks of our country rely on demand deposits as one of the main resource bases (a. omonov, 2010). figure 2. deposits attracted in commercial banks of our country and their growth rate (billion soums) [5] according to the experience of foreign countries, term deposits are considered as a stable financial source in the resources of commercial banks. although deposits in the resources of commercial banks of our republic have a tendency to grow, the share of time and savings deposits in the composition of deposits is much lower than before demand. therefore, one of the important tasks facing commercial banks is to increase the source of funds that is stable in term of resources. 5. conclusions and suggestions the problem of organizing the bank's resources is the first priority for the smooth operation of the bank. bank resources are formed through passive operations carried out by banks and are kept in the passive part of the bank's balance sheet. as a result of the above analysis and studies, we were able to develop a number of suggestions: 1. when considering issues of resource stability, it is necessary to pay attention to the guarantee of deposits. the formation and circulation of bank resources is a continuous process, and this, in turn, is the basis for the continuity of banks' activities [6]. 2. the structural structure of bank deposits for individual commercial banks is different. the sum of the bank's own funds and borrowed or purchased funds constitutes the resource base of commercial banks. 2019 2020 2021 2022 2023 deposit size 29912 35189 49153 66129 92553 net growth rate 0 17.6 39.7 34.5 40.0 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 0 5 10 15 20 25 30 35 40 45 deposit size net growth rate american journal of business management, economics and banking volume 26 july 2024 p a g e | 43 www.americanjournal.org 3. it is important to constantly increase the share of the authorized capital in the structure of the bank's capital, because the authorized capital is the most stable part of the private capital along with the undistributed profit of the bank. 4. private banks have the opportunity to strengthen the additional capital base by increasing the volume of subordinated debt obligations. in the practice of private banks, the absence of subordinated debt obligations indicates the weakness of their position in the market of long-term loans. taking into account that subordinated debt obligations make up the main part of the bank's additional capital, as well as being a convenient and cheap means of attracting long-term resources, it is appropriate to expand the practice of attracting subordinated debt obligations by private banks [7]. 5. in order to increase the share of time and savings deposits in the total deposits of private banks, it is appropriate to set a differential interest rate for time and savings deposits of legal entities based on their duration and amount. references: 1. mirziyoev sh.m. address of the president of the republic of uzbekistan to the oliy majlis and the people of uzbekistan. january 24, 2020. www.lex.uz 2. abdullayeva sh.z. banking. "economics and finance" textbook. 2017 year. 732 pages. 3. information from the official website of the central bank of the republic of uzbekistan – www.cbu.uz 4. information from the official website of the central bank of the republic of uzbekistan – www.cbu.uz 5. information from the official website of the central bank of the republic of uzbekistan – www.cbu.uz 6. abbas f., iqbal s., aziz b. the impact of bank capital, bank liquidity and credit risk on profitability in postcrisis period: a comparative study of us and asia //cogent economics & finance. – 2019. 7. kishan r. p., opiela t. p. bank size, bank capital, and the bank lending channel //journal of money, credit and banking. – 2000. – с. 121-141. http://www.lex.uz/ http://www.cbu.uz/ http://www.cbu.uz/ http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 148 www.americanjournal.org the entry of uzbekistan into the global community integration rakhimberdiyev tolibjon studentt at the samarkand institute of economics and service raximberdiyevtolibjon90@gmail.com a b s t r a c t k e y w o r d s this article discusses the economic development of uzbekistan and its integration into the global community. alongside, it provides information about the concept of integration. the essence, forms, and objective foundations of international economic integration. introduction international economic integration involves the steady deepening and broadening of economic relations among different countries, leading to the growth and interdependence of their economies, as well as the expansion and contraction of their respective industries. at the micro level, this process often occurs through the mutual influence of individual firms located in geographically proximate countries, shaping various forms of economic interactions between them, including the establishment of subsidiaries in foreign countries. at the intergovernmental level, integration occurs through the formation of economic unions among states and the convergence of economic policies based on mutual agreement. researching the processes of international economic integration and addressing the challenges that may arise within it, as well as striving to identify the most effective forms of this process, has led to the emergence and development of various theoretical approaches. among these theories, it is possible to distinguish neoliberalism, corporatism, structuralism, and neo-keynesianism, each offering different perspectives and solutions to the complexities of international economic integration. corporatism, represented by scholars such as s. rolf and j. rostow, emerged in the 1960s as a theory emphasizing the role of transnational corporations in the international economic integration process. it advanced the idea that, in contrast to market mechanisms and state regulation, the activities of transnational corporations could contribute to the rational and balanced development of international economic integration. structuralism, primarily represented by g. myrdal, challenges the idea of complete liberalization of the movement of goods, capital, and labor, arguing against the unfettered operation of market american journal of business management, economics and banking volume 23 april 2024 p a g e | 149 www.americanjournal.org mechanisms in production, citing disparities and deepening inequalities in income distribution. advocates of this approach view economic integration as a profound process of structural transformation within the economies of integrating countries, leading to the emergence of new integrated economic entities with relatively advanced industrial structures and improved quality from a qualitative standpoint. neoliberalism, advocated by v. repke and m. allen in the 1950s and 1960s, envisages the establishment of a single market within multiple countries, where free competition and the spontaneous forces of the market operate without significant interference from government policies. according to these scholars, state intervention in international economic relations leads to negative consequences such as inflation, distortions in international trade, and disruptions in payment systems. however, the emergence of regional intergovernmental alliances with varying degrees of state intervention has demonstrated the inadequacy of early neoliberal thinking in shaping international economic integration. therefore, subsequent neoliberal theorists, such as b. balassa, focused on studying the active participation of states in the economic life of integration. neo-keynesianism, primarily represented by r. cooper, focuses on increasing overall welfare through various forms of international economic cooperation while maximizing the autonomy of nations within integration processes. neo-keynesians have proposed two possible variants for advancing international integration: the first involves integration based on relinquishing national sovereignty in favor of aligning economic goals and policies, while the second emphasizes integration while retaining national independence to the extent possible. recognizing the impracticality of either variant in its pure form, they advocate for their reconciliation through the alignment of internal and external policies of integrating parties. another manifestation of the neo-keynesian approach is dirigisme, represented primarily by j. tinbergen, whose proponents reject the market's dominant role in integration processes. they believe that the formation and operation of international economic structures by integrating countries should be carried out based on a general economic policy, coordination through social legislation, and alignment of credit policies. the general description of these various theoretical approaches indicates that each aims to explore specific aspects of international economic relations, address existing challenges, and develop new goals. leveraging the correct and scientific aspects of these theories is essential for further enhancing international economic relations, which is a significant task in the field of economic theory. the main forms of international economic integration are as follows: free trade areas. this is the simplest form of economic integration, within which trade barriers between participating countries are eliminated. the establishment of free trade areas increases competition among domestic and foreign producers in the domestic market, which, on one hand, can increase the risk of bankruptcy for domestic producers, but on the other hand, creates incentives to enhance production efficiency and introduce innovations. the european free trade association and the commonwealth of independent states serve as examples of free trade areas. customs union. this form of economic integration, along with the activity of free trade areas, involves the establishment of a single external tariff and the implementation of a unified external american journal of business management, economics and banking volume 23 april 2024 p a g e | 150 www.americanjournal.org trade policy towards third countries. the european union (eu) is a notable example of a customs union. monetary union. this ensures the free exchange of national currencies and the operation of a single currency in accounting. the aim of monetary union is to facilitate mutual settlements and to ensure the functioning of a single currency. the european monetary union, as well as the payment union for the south-east asia and cis countries, are examples of monetary unions. common market. this represents a more complex form of economic integration, encompassing free trade among participants, a common external tariff, as well as the free movement of capital, labor, and coordinated economic policies. the european economic community or the european single market could serve as examples. within this framework, all customs duties and import quotas are abolished, goods entering the european market from other countries are subject to the same regulations, ensuring the free movement of currency and labor, and a unified policy is implemented to address common issues. economic and monetary union. this is considered the highest form of international economic integration. here, all forms of economic integration converge under a common economic and monetary policy. this ensures alignment of all aspects of economic integration with a unified economic and monetary policy. a number of objective factors characterize the process of international economic integration, among which the following occupy a primary place: globalization and the expansion of economic relations; deepening of international division of labor; worldwide scientific and technological revolution; increasing openness of national economies. one of the main factors that stimulate integration processes is the increase in the level of openness of the national economy. the characteristics unique to an open economy include: deep integration into the global economic relations system; reduction or complete elimination of barriers to the movement of goods, capital, and labor between countries; ensuring the convertibility of national currency. thus, integration is defined by the mutual penetration of national economic growth processes, resulting in the formation of a single economic organism. in real life, there are two tendencies: integration and disintegration. additionally, due to various reasons, different elements of integration in different countries may develop unevenly. therefore, it is possible to distinguish the following types of integration: strict (unilateral) integration. in this type of integration, external conditions determine the process, with some countries being net recipients, while others are donors. cooperative (bilateral) integration. in this type of integration, each country can be both a recipient and a donor at the same time. the development of international economic integration is influenced by a number of conditions and factors. american journal of business management, economics and banking volume 23 april 2024 p a g e | 151 www.americanjournal.org integration of uzbekistan into the world economy and its foreign economic activity. todays, uzbekistan's integration into the global economy is being implemented as a multi-level system, which can be divided into the following five levels: global; transcontinental; regional; subregional; and local¹. each level of integration has its unique tasks. at the global level, uzbekistan's strategic integration task is to directly link all economic entities in the country with the external market by creating conditions that are equally conducive to international currency and trade mechanisms based on mutual rights and national interests. uzbekistan's active participation in the activities of organizations such as the un, the organization for security and co-operation in europe (osce), the european union, the world bank, the international monetary fund, and the economic cooperation organization (eco) contributes to further integration into the global economy. the transcontinental integration task of uzbekistan is to further strengthen mutual relations within the framework of the international transcontinental economic cooperation organization (eco). this organization was established in 1992 and includes ten countries in the asian continent (turkey, iran, pakistan, afghanistan, uzbekistan, kazakhstan, kyrgyzstan, tajikistan, turkmenistan, and azerbaijan). its main goal is to promote regional and international economic cooperation in areas such as transportation, communication, industry, agriculture, trade, tourism, and human resources development. uzbekistan's regional integration with newly independent states (nis) at the subregional level is manifested through the participation in the commonwealth of independent states (cis). uzbekistan supported the idea of creating the cis, joined its founding members, and actively participated in strengthening integration and cooperation relations, as well as in the establishment of institutional structures such as the interstate economic committee (iec), the interstate bank (ib), and the cis statistical committee. it is necessary to emphasize that in the future, the cis should focus more on its original goal, which is to establish mutually beneficial cooperation relations based on existing economic ties and opportunities and to ensure economic development in this direction. this organization has become more active in political matters, and under the slogan "strengthening integration relations," it has begun to intervene in the internal affairs of weaker states, jeopardizing their interests, and the prevalence of economic and political pressure situations has begun. uzbekistan's regional integration at the subregional level is aimed at strengthening and developing cooperation between the central asian countries, which share a common history, unique cultural traditions, and a similar lifestyle and mentality. the central asian regional cooperation (carc), established in january 1992, is a clear manifestation of such integration. another promising and powerful regional alliance is the shanghai cooperation organization (sco). the formation of the sco began with the discussion of issues related to determining the borders between the five neighboring post-soviet republics and china. initially called the "shanghai five," this organization was established in shanghai in 1996, in alma-ata in 1998, and in bishkek in 1999, where the heads of state of the five countries agreed to strengthen border security and reduce the presence of armed forces in border areas. in july 2000, uzbekistan's first president i.a. karimov participated as an observer at the dushanbe summit. on june 15, 2001, uzbekistan became the sixth member of the organization at the shanghai summit. in 2004, the shanghai convention on combating extremism was signed, and the organization began its full-fledged operation. in 2005, uzbekistan participated as an observer at the astana summit and in the meetings in bishkek on august 15-16, 2007, with iran, pakistan, and india, among others. american journal of business management, economics and banking volume 23 april 2024 p a g e | 152 www.americanjournal.org in 2016, during the sco summit held in tashkent, india and pakistan joined the sco as members. eighteen observer states' representatives participated in this summit alongside member states. the organization signed mutual consultations and cooperation agreements. today, the sco's goals are quite straightforward: to prevent military-political conflicts among member states and to create integrated infrastructure along borders (roads, logistics centers, information and legal frameworks, and others). on june 13-14, 2019, during the meeting of the heads of government council of the shanghai cooperation organization in bishkek, kyrgyz republic, the issue of strengthening cooperation with the shanghai cooperation organization and discussing matters of establishing free trade relations among central asian states was discussed. subsequently, on february 26, 2020, the president of the republic of uzbekistan signed decree no. pq-4619 "on the approval of the international treaty," which states that the main task between the governments of the member states of the shanghai cooperation organization, signed during the summit of the heads of state of the member countries of the shanghai cooperation organization held in bishkek on june 14, 2019, was to cooperate in the field of public information. with the accession of india and pakistan, the two largest countries in asia, to the sco, the organization has become the largest regional association with global significance. today, the sco's activities cover a wide range of issues, including politics, security, counterterrorism, trade and economy, and cultural-humanitarian cooperation, extending to environmental issues. the conditions for uzbekistan's integration into the world economy and the implementation of its foreign economic activity began with the country gaining independence. in such a situation, it is necessary to establish a system for managing external economic relations, develop rules and regulations for establishing foreign relations, and define strategies for integrating into the global economic system. it was essential to develop a strategy for uzbekistan's foreign policy and economic activity, which would define the legal framework for foreign relations and the contractual-legal basis for international cooperation, as well as the main principles for developing cooperation with foreign partners. the foundation of uzbekistan's participation in the international division of labor and its involvement in global economic relations lies in establishing an open economy. therefore, shortly after gaining independence, uzbekistan established diplomatic relations with more than 80 countries, opened diplomatic missions in many countries, and joined numerous international organizations such as the un economic institutions, the world bank, the international monetary fund, the international finance corporation, and other international financial and economic organizations aimed at supporting economic development. dwelling on the necessity of the processes of integration of uzbekistan into the world economy, president sh. mirziyoyev emphasized that "we must harmonize with the world production system, the requirements of the world market and the processes of economic integration."1 accordingly, development of a program aimed at diversification of foreign trade routes and their integration with international infrastructures is set as a strategic task. in particular, it is planned to develop a decision in this regard, in which it is proposed to take into account the following:2 increasing the level of 1 "the appeal of the president of the republic of uzbekistan shavkat mirziyoyev to the senate and the legislative chamber of the oliy majlis" (january 24, 2020) xalq so'zi newspaper, january 25, 2020. 2 "decree of the president of the republic of uzbekistan on the strategy for actions on further development of the republic of uzbekistan" dated february 7, 2017, no. pf-4947, paragraph 8, line 145. american journal of business management, economics and banking volume 23 april 2024 p a g e | 153 www.americanjournal.org competition between national transport logistics companies, encouraging the reduction of tariffs for export enterprises, expanding car fleets, loans for obtaining trucks simplify the acquisition; international economic integration has historically been a key driver of global economic development, and although it has resulted in long-term benefits, many challenges remain unaddressed in the current process of integrating into the world economy. for our country, this entails further liberalization of foreign economic and currency policies. in the early stages, our country pursued foreign trade along two lines: government-to-government agreements with cis countries and accounting in freely convertible foreign currencies in external transactions with foreign countries. while the pace of global trade growth has noticeably slowed down, and external demand for the most important export goods has decreased, and prices have declined, we have achieved a positive balance in foreign trade turnover. this has allowed us to increase our gold and currency reserves. it is important to emphasize that the geographical scope of our foreign trade relations, primarily with the developing markets of the asian continent, is changing qualitatively in terms of trade turnover. these indicators primarily reflect the significant growth in the export of competitive finished products, indicating the growing potential and capabilities of our economy. additionally, such a situation contributes significantly to the importance of stabilizing our exports in the face of the changing dynamics of the global market, particularly with regard to basic raw material prices. developing comprehensive cooperation among the central asian states is of primary importance in enhancing foreign economic activity. uzbekistan, kazakhstan, and kyrgyzstan have initiated the negotiation process for a treaty establishing a single economic space. a program aimed at integrating their industries has been developed. developing foreign economic relations in the republic requires creating favorable conditions for attracting foreign investments to the economy and establishing necessary institutions and organizations. these include the national insurance company "o'zbekinvest," various joint insurance companies, a service to support investments established jointly with the united nations at the cabinet of ministers, the state property committee's foreign property and foreign investment agency, and similar entities. these institutions and organizations, as well as the legal frameworks established in the republic, create favorable conditions for foreign investment activities, protect their rights, and guarantee the security of invested capital. uzbekistan's integration into the global community will also be evident in projects implemented by the united nations in the fields of economy, education, healthcare, culture, and science. references 1. 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(2024). хизмат кўрсатиш соҳасини–аҳоли турмуш даражасига таъсир этувчи омили. ta'lim innovatsiyasi va integratsiyasi, 19(1), 166-171. 32. урунбаева, ю. п. (2024). хизмат кўрсатиш соҳасининг аҳамияти. ustozlar uchun, 56(1), 186-190. 33. урунбаева, ю. (2024). меҳнат ресурслари–миллий иқтисодиётни ривожлантиришнинг асосий омилидир. iqtisodiy taraqqiyot va tahlil, 2(2), 644-649. 34. урунбаева, ю. п. (2023). роль малого бизнеса в развитии страны. international journal of recently scientific researcher's theory, 1(9), 105-108. 35. тўраев, ш., режапов, х., махмудов, ж., мадиева, з., элбаева, м., камалова, м., ... & жумаева, м. biznes-эксперт. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 91 www.americanjournal.org the impact of influencers on tourism digital advertising in the republic of karakalpakstan mirziyo sodikov odiljon ogli independent researcher, senior lecturer at tashkent state university of economics and at branch of plekhanov russian university of economics in tashkent, leading lecturer at management development institute of singapore in tashkent e-mail: mirziyo.sodikov@cesarritzcolleges.ch a b s t r a c t k e y w o r d s in the rapid development of digital technology and the rise in the number of users, digital marketing is gaining momentum among businesses. in particular, businesses in the field of tourism are more interested in this type of marketing. the diversification of digital advertising tools is evolving continuously. digital advertising investments are increasingly drawing the attention of marketing managers and becoming significant in the marketing policy of business. directly or indirectly, the local population in the region influences advertising. as known, tourists heed the advice of fellow users on a tourist visit. therefore, promoting their businesses via influencer feedback, blog entries, photo and video content influence tourists visiting the destination. the significance of this study is also due to the fact that there is currently no research on tourism digital advertising for this area. therefore, the given study justifies the importance of digital advertising among businesses in the era of digital technology. the given study justifies the importance of digital advertising among businesses in the era of digital technology. digital promotion includes various marketing tools. influencers among them are currently in demand. it is established that influencer participation positively influences advertising views of both urban and regional areas of uzbekistan. in addition, an assessment of the competencies of influencers operating in the tourism business, acceptance of their capabilities by the local population, and information about influencers operating in karakalpakstan were given as a logical conclusion. tourism, marketing, digital advertising, influencer marketing, social media american journal of business management, economics and banking volume 24 may 2024 p a g e | 92 www.americanjournal.org introduction background of tourism in karakalpakstan a model was developed, explaining how each of the marketing instruments and concepts influence potential target tourists. the results show that influencer communication effectiveness influences attitude and, therefore, intention to visit karakalpakstan. therefore, developing the right tools of selecting and working with influencers is of key importance for creating reach and inspiring enough followers to positively approach karakalpakstan, virtually explore it, and then decide to visit. increasingly, bloggers and influencers are asked to visit a particular region, and, even more often, to mention how pretty or interesting it is, or how amazing are the “must-see” historical or other tourists’ sights. after all, the ultimate goal is to invite as many people as possible to come and visit that region personally. will virtuality soon replace the reality? for various bloggers and influencers, success in finding answers to this question is closely related to the region, destination, or specific attraction that an influencer is asked to authentically promote. there are numerous researches conducted on tourism in general, and the role of influencers in the tourism sector. however, no research has been done on how a region, such as karakalpakstan, can utilize influencers based on specific cultural, historical, environmental, and other attractions, focusing on particular audience segments. thus, there is no region-specific theory on influencer tourism. this study applies marketing and tourism theories of digital marketing and the relation of influencers and their audience to the specific nature of the region of karakalpakstan, visualizing how influencers can become partners of tourist organizations in destination marketing (ayupova, m., & ayupova, l., 2020). overview of digital advertising mobile usage beneficiaries are social media platforms. the blended global user analogue is 3.8 billion social media users (smds) and the current analogue of total mobile users is 62% of the world's population. the shifting social strategy spends 24% of advertisers on social media, and that is driving even more money to social media advertising because of the increase in the online presence of buyers of goods due to the covid-19 pandemic at nearly 10%. such forecasts show that social media ad spending is expected to increase in 2023 to $134 billion, while instagram continues to be the largest advertising market, at $33 billion. in addition, because smd and trustworthy user content are growing because smds are influenced by recommendations for the usage of reliable customer content, enterprises should invest heavily in attracting customers within the social media platform (wearesocial.com, 2020). driven by internet users, digital advertising emerged in the last decade as an advertising platform of the present and the future. the conclusion can be made based on the increased digital advertising spending that has been growing steadily in recent years. in particular, internet ad investment, after overtaking tv and print media, became the advertising category with the highest percentage of investment worldwide in 2020, followed by tv and print media. this is true for each year since 2015. the latter investment supports social media advertising, specifically in recent times (dilafruz, sodikova, 2023) american journal of business management, economics and banking volume 24 may 2024 p a g e | 93 www.americanjournal.org influencers in tourism marketing recent studies about the power of influencers have demonstrated how they affect consumer’s behavior and the level of satisfaction about a product or service. thus, tourism marketing has exploded in recent years, not only through digital marketing but also through influencers who provide information related to their experiences. however, most of the tourism research focuses on urban destinations and large hotels, neglecting minor and marginalized destinations. the objective of this study is to demonstrate the key role of influencers in digital advertising on tourism promotion in karakalpakstan, a small regional destination, and to obtain a sustainable form of local economic development (magno, f., & cassia, f.,2018). recent surveys show that the influencer marketing industry appears to continue to grow, as more brands adopt the technique. according to a report by influencer marketing hub, nearly 4,000 studies were conducted in 2017, a number that has consistently escalated in recent years. according to the report, facebook and youtube are the top sources for global marketers, so it is an interesting study that was constructed in the tourism environment. digital advertising is intuitive when we talk about using social media to promote travel through influencers. endorsement and payment for reviews are an increasing challenge for digital advertising in tourism marketing strategy (содикова, 2023). digital marketing is a tried and trusted path for tourism industry marketers, with the use of this channel expected to grow in the coming months. according to the report, social media marketing plans will continue to dominate other strategies such as email marketing and website display, which are expected to be used less in the future (magno, f., & cassia, f. (2018). definition and role of influencers sociologists say a trend that could disappear in years under the influence of lifestyle transmitters, our planet's planters dressed like wind-like women characters, taking the dust lingered toward the direction of the leading ones besides the products tried on the protagonist of this figure. the cyber trend that rose even more with the pandemic process reached its peak especially in the field of beauty and led to the increase of brands and instagram user searches. in fact, we can say instagram influencers. especially on instagram, there are many influencers in various areas such as travel, fashion, and beauty. influencers are accepted as social media users or entities that are aware of their opinions and behaviors and have reached a certain number of followers in their social environment. these individuals or entities are seen as role models by their followers. internet users look at the recommendations and suggestions of influencers, including their product preferences (sesar, v., hunjet, a., & kozina, g., 2021). influencers play an important role in communication by promoting a product, place, or airport on their social environment with an unbiased point of view. the area of influence of the influencer and the number of followers play a big role in brand engagement in this context; the active interaction of an influencer with their followers and the interaction with their followers can create a closer connection with their followers, and the active interest in the influencer's recommendation model can result from the said influences. people admire them for their accomplishments. they are social icons. some such as artists, athletes, and the royal family are also the subject of admiration. in today's world, people are identified with the characters or people in certain places, and this identification exists as a great attracting factor in these places (guerreiro, c., viegas, m., & guerreiro, m., 2019). american journal of business management, economics and banking volume 24 may 2024 p a g e | 94 www.americanjournal.org influencer marketing has become an industry buzzword: the first and last sales solution. this type of advertising has fundamentally changed the traditional media landscape, and has become the most effective distracter of millennials, especially in the tourism sector. along with this, a new phenomenon termed “micro-influencers” has emerged, who also play a significant role in the tourism industry. influencers inspire, excite, and activate future travelers, disseminating information and actions that amplify tourists' desires. they interact with various forms of social media, so that digital flyers can easily come together to create an interactive user experience. at the same time, influencers are advertising ethical sources, designing and delivering content that fits the specifics of the target audience (barbe, d., & neuburger, l.,2021) influencer marketing in the tourism industry can facilitate access to the right type of audience, with easy-to-establish credibility between the brand and the consumer. the primary goal of a tourist is to interact with and maintain personal relationships on social networks, so it's a natural tool and authentic way to share travel inspiration. social networks boast a large following for every travel person. unlike brands, influencers have built relationships and trust and loyalty to their friends. influential micro-markets are those opinion leaders who have focused on creating and promoting their personal brand thanks to their interests and travel aspirations, their small audience and tight visibility. authentication leaders are also open users and competitors in the broader social media context, and often the value of an exclusive product. the travel brand is also encouraged to promote the loyal broadness of micro-tour markets, especially those that implement advertising campaigns, implementation of travel programs in off-road areas such as karakalpakstan, by performing work towards the building and placement of activities influencing the long-assigned credibility. challenges of working with influencers when developing an influencer marketing strategy and planning the implementation of advertising content, advertisers must take into account many factors and react quickly. these could relate to choosing the right person to be an influencer, which involves choosing the right information and ways of presenting it in the face of the constraints of social media platforms. moreover, influencers can also face other limitations such as network policies, changes to platform algorithms, the advertising content approval process, and so on. some advertisers also know that negotiations for project preparation and implementation take a long time, just like the process of preparing advertising itself. they may have a lot of back-and-forth requirements and feedback before the influencer publishes content. a constant process of negotiations and constant feedback is not uncommon, even with revisions desired at the last minute. in addition, issues may arise during negotiations that can stop them completely. to collaborate with an influencer, advertisers need to help the influencer ensure that the content is appropriate for the brand and its target audience, without watering down the influencer's voice. trying to hit the target and reach the right people according to the brand goals are important steps in any influencer project, and even more so when things are disrupted by the platform or the audience (barbe, d., & neuburger, l. 2021.) successful influencer campaigns in karakalpakstan the image of live travel acquires distinctive colour when it travels in the digital area with the help of influencers. in karakalpakstan, the image acquired by influencers gives audiences a powerful broadcast view. in today's world, advertisements are becoming a focus of attention due to their american journal of business management, economics and banking volume 24 may 2024 p a g e | 95 www.americanjournal.org excessive use. some successful influencer campaigns to solve the problem. in earlier studies, marina and herlina have noted that influencer marketing is the most suitable marketing for tourism advertising and has positive effects on the ability of viewers to visit destinations advertised on social media platforms such as instagram. karakalpakstan is an autonomous region of uzbekistan. until 1991, karakalpakstan was not a separate territory as an independent state. after the collapse of the ussr, it became independent, which is connected by a common historical past, religion and shares the language with the turkicspeaking peoples living around. the turkic languages of the peoples living in the region serve as the language of inter-ethnic communication. both tourists and residents are interested in visiting and getting to know the distinctive culture, national heritage, traditional way of life, craftmanship, customs, ceremonies, camel breeding, local cuisine and other features. through digital platforms, tourists have the opportunity to review and applaud the natural beauty and distinctive cultural heritage of tourism destinations in the region of karakalpakstan (unwto, 2020). impact of influencers on tourist behavior digitization is inevitably changing tourists’ information search and gathering patterns, thus providing new challenges and opportunities for marketers. in the last several years, tourism is experiencing a transition in the way in which it communicates with potential and actual travelers. organizations are discovering they should not only be present online, but also adopt a new communication approach, based on the new-emerging social media environment and its particular communication characteristic of co-creation of experiences. as one of the most influential platforms in current years, instagram and facebook have engaged numerous content creators, or influencers: users that can build a follower base and engage them through their unique content and recommendations (m. sodikov, 2023) social media allow creating and disseminating user-generated content, which reports, speculates, evaluates, and provides advice. in this sense, content creators and social media allow performing, explaining, and potentially exploiting a word-of-mouth process towards a dialogue between companies and tourists and among tourists themselves, helping consumers find product information and aiding companies to market tourism resources cost-effectively. these individuals, also called influencers, can influence fans in terms of purchase intentions and promote a strong sense of engagement and community. digital word of mouth, often mediated by these influential ‘peoples’, can change consumer behavior, attitudes, and intentions as it is suggested to be more credible and trustful in comparison to traditional advertising. thus, while the extent of the audience plays an important role for influencers and organizations, engagement, the strength of the influence that social stars are able to create in their audience, is actually the most important influencers’ feature when driving audience perceptions (m. sodikov, 2023). the rapid growth in technology leads to the fast development in information, decision-making, and media channels of online marketing. word-of-mouth has been long recognized as an important driver of tourists’ behavior. influencers’ contacts with their audiences yield word-of-mouth exchanges and information dissemination through social networks. such high levels of persuasion are reported to be driven by increased levels of trust, familiarity, and personal experience situations when audiences feel they build a strong interpersonal bond with the influencer. indeed, emotional ties, emotional responses, and personal attitude tend to enhance the audiences’ persuasion. the likelihood of american journal of business management, economics and banking volume 24 may 2024 p a g e | 96 www.americanjournal.org responding to the influencer depends upon the amount of information received and the ease of access to that information (m. sodikov, 2023). conclusion literature on the effectiveness of influencer marketing in comparison with traditional forms of advertising in the tourism industry. currently there is little information on the effectiveness of influencer marketing when promoting tourism in the digital space, especially in remote regions such as karakalpakstan. this literature was compiled from sources that addressed general advertising, influencer marketing as a whole, and tourism industry. in the cambridge business english dictionary, cambridge university press defines an advert as 'an advertisement'. in this study the word 'advertising' is widely used because it relates specifically to work and advertising in general, as well as the advertising of tourism information. in today’s digital age the vast amounts of information available on different tourist attractions can make advertising and promoting these attractions overwhelming. traditional tourism advertising is not as effective as it once was in creating an impression about destinations. most tourists are influenced by social media platforms when making decisions when it comes to traveling to a destination. recently tourism advertising has shifted to social media and other online platforms. social media influences tourism activities and motivates people to visit destinations. influencer marketing is a new and successful marketing tool but it is not yet widely used in the tourism industry. studies around this topic area are therefore quite limited. it is important to note that influencer marketing is still a relatively new phenomenon and different definitions are given for it. coates (2020) described an 'influencer' as having the capacity of influencing entertainers, politicians, and sporting figures over people. these digital influencers can have between 1,000 and 5,000 followers while macro digital influencers have more than 100,000 to 5 million followers, have more credibility, and are more loyal. the influencers in this research landed under the 'micro digital influencers' category because they have fewer than 5,000 followers. moreover, they are local citizens of karakalpakstan who travel to local tourist sites. meanwhile, influencers in social media advertising highlight the best qualities of the sightseeing areas of countries. many countries promote advertising through social media in order to attract tourists to the locations but they do not necessarily use locals for that purpose. references: 1. ayupova, m., & ayupova, l. (2020). tourism potential of karakalpakstan: current state, problems, and development prospects. tourism and hospitality management, 26(1), 67-80. 2. barbe, d., & neuburger, l. (2021). generation z and digital influencers in the tourism industry. in generation z marketing and management in tourism and hospitality: the future of the industry (pp. 167-192). cham: springer international publishing. 3. coates a. e. et al. “it’s just addictive people that make addictive videos”: children’s understanding of and attitudes towards influencer marketing of food and beverages by youtube video bloggers //international journal of environmental research and public health. – 2020. – т. 17. – №. 2. – с. 449. 4. digital 2020: 3.8 billion people use social media https://wearesocial.com/uk/blog/2020/01/digital-2020-3-8-billion-people-use-social-media/ https://wearesocial.com/uk/blog/2020/01/digital-2020-3-8-billion-people-use-social-media/ american journal of business management, economics and banking volume 24 may 2024 p a g e | 97 www.americanjournal.org 5. dilafruz, sodikova. "e commerce and benchmarking strategy for industrial enterprise development." евразийский журнал академических исследований 3.5 part 3 (2023): 21-27. 6. содикова, дилафруз. "analysis of e-commerce factors influencing on economic development." economics and innovative technologies 11.4 (2023): 349360. 7. guerreiro, c., viegas, m., & guerreiro, m. (2019). social networks and digital influencers: their role in customer decision journey in tourism. journal of spatial and organizational dynamics, 7(3), 240-260. 8. m. sodikov, 2023 the prospects for the growth of digital advertising in tourism to attract visitors to uzbekistan. [online] available at: https://www.iksadkongre.com/_files/ugd/614b1f_0ac1216c9fe345f59b6f9fcded0a5a0e.pdf?fbcl id=iwar1qjb6staveozcxatju_qktl7vd6_6u89y1rfifum7ra10kyvath0zmw6q 9. magno, f., & cassia, f. (2018). the impact of social media influencers in tourism. anatolia, 29(2), 288-290. 10. republic of karakalpakstan tourism development agency. (2023). annual report on tourism marketing strategies. 11. singh, s., & kapoor, a. (2021). the role of influencers in destination marketing: a conceptual study. journal of tourism management research, 15(2), 45-58. 12. sesar, v., hunjet, a., & kozina, g. (2021). influencer marketing in travel and tourism: literature review. economic and social development: book of proceedings, 182-192. 13. uzbekistan national agency for project management. (2022). digital marketing trends in uzbekistan: insights and opportunities. 14. world tourism organization (unwto). (2020). global guidelines for influencer marketing in tourism. madrid: unwto publications. https://www.iksadkongre.com/_files/ugd/614b1f_0ac1216c9fe345f59b6f9fcded0a5a0e.pdf?fbclid=iwar1qjb6staveozcxatju_qktl7vd6_6u89y1rfifum7ra10kyvath0zmw6q https://www.iksadkongre.com/_files/ugd/614b1f_0ac1216c9fe345f59b6f9fcded0a5a0e.pdf?fbclid=iwar1qjb6staveozcxatju_qktl7vd6_6u89y1rfifum7ra10kyvath0zmw6q american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 5 www.americanjournal.org strategic alliances on the sustainability of small and medium enterprises (smes) in rivers state wegwu, macaulay enyindah department of management, faculty of management sciences, university of port harcourt, rivers state, nigeria a b s t r a c t k e y w o r d s this study investigates the impact of strategic alliances on the sustainability of small and medium enterprises (smes) in rivers state, nigeria. the smes face a myriad of challenges such as inadequate funding, insufficient managerial expertise, leveraging shared resources, knowledge, and methods which threatens their sustainability and growth. it was in view of these aforementioned problems that necessitated this research in order to proffer solutions for smes to achieve sustainability and enhance growth. in solving these problems, the research involved statement and analysis of four hypotheses. using a sample of 250 respondents randomly selected from ten smes, the research examines the relationships between strategic alignment, resource sharing, operational efficiency, and market expansion. the data were analyzed using the spearman rank-order correlation coefficient. the findings reveal that both strategic alignment and resource sharing significantly contribute to operational efficiency and market expansion of smes. the study concludes that fostering strategic alliances is essential for enhancing the sustainability and growth of smes in the region. recommendations for smes and policymakers are provided to facilitate effective strategic partnerships and resource sharing. strategic alliances, smes, sustainability, strategic alignment, resource sharing, operational efficiency, market expansion, rivers state introduction small and medium enterprises (smes) are the backbone of the economy in rivers state, nigeria, playing a crucial role in job creation, poverty alleviation, and economic diversification. these enterprises significantly contribute to local and national gdp, fostering innovation and providing numerous employment opportunities. however, smes in rivers state face a myriad of challenges that threaten their sustainability and growth. these challenges include inadequate funding, limited market access, and insufficient managerial expertise, which collectively hinder their ability to compete and expand effectively (ebitu et al., 2016). strategic alliances, defined as partnerships between two or more organizations to achieve mutually beneficial objectives, offer a promising solution to the hurdles faced by smes. by leveraging shared resources, knowledge, and networks, strategic alliances can provide smes with the necessary support to overcome financial constraints, enhance market reach, and gain american journal of business management, economics and banking volume 29 october 2024 p a g e | 6 www.americanjournal.org managerial and technical expertise. this collaborative approach can be particularly beneficial in the context of rivers state, where the business environment is both dynamic and competitive, influenced by the state's significant position in nigeria's oil industry (osano & koine, 2016). the importance of smes in rivers state cannot be overstated. the oil industry creates a high demand for various services and products, presenting opportunities for smes to thrive. however, this industry also brings about intense competition and complex market dynamics, making it challenging for smaller businesses to sustain and grow. strategic alliances can help smes navigate these complexities by providing access to resources and capabilities that they would otherwise lack (gulati, 1998). this paper aims to explore the role of strategic alliances in enhancing the sustainability of smes in rivers state. it examined the benefits that such alliances can bring, including improved access to resources, expanded market opportunities, and enhanced knowledge and expertise. furthermore, it discussed the potential challenges of managing strategic alliances and provided practical examples of successful collaborations. by doing so, the paper also provided insights into how smes in rivers state can leverage strategic alliances to achieve long-term sustainability and growth. the paper offered recommendations for smes and policymakers on how to foster and support strategic alliances. by implementing these recommendations, smes in rivers state can better navigate the competitive business landscape and contribute more effectively to the region's economic development. statement of the problem the sustainability and growth of small and medium enterprises (smes) in rivers state face significant obstacles that hinder their full potential. despite their critical role in economic development, these enterprises encounter persistent challenges that threaten their longevity and competitiveness. one of the most pressing issues is inadequate access to finance. many smes struggle to secure loans from traditional financial institutions due to stringent lending criteria and high-interest rates. this financial bottleneck severely limits their ability to invest in new technologies, expand operations, and enhance productivity (adebisi & olayinka, 2013). another major challenge is limited market access. smes in rivers state often find it difficult to penetrate larger markets due to their constrained marketing capabilities and lack of connections to extensive supply chains. this market isolation confines many smes to local markets, reducing their growth opportunities and competitive edge. as a result, these enterprises are unable to scale up and exploit broader market potentials (ogujiuba et al., 2013). moreover, the managerial and technical expertise required to navigate complex business environments is often lacking among smes in rivers state. many small business owners and managers do not have the necessary skills and knowledge to implement best practices in business operations, strategic planning, and technology adoption. this deficiency led to inefficient operations, poor decision-making, and an inability to compete effectively with larger firms that have more resources and better-trained personnel (nwigwe et al., 2013). given these challenges, there is a critical need for solutions that can enhance the sustainability and growth of smes in rivers state. strategic alliances offer a promising avenue for addressing these issues. by forming partnerships with other businesses, smes can pool resources, access new markets, and gain essential knowledge and expertise. however, while strategic alliances have the potential to provide significant benefits, they also come with their own set of challenges, such as managing partnership dynamics and aligning objectives. thus, there is a need to explore how these alliances can be effectively formed and managed to maximize their benefits for smes in rivers state. american journal of business management, economics and banking volume 29 october 2024 p a g e | 7 www.americanjournal.org research hypotheses h01 strategic alignment does not relate with operational efficiency of smes in river state h02 strategic alignment does not relate with market expansion of smes in river state h03 resource sharing does not relate with operational efficiency of smes in river state h04 resource sharing does not relate with market expansion of smes in river state review of related literature 2.0 theoretical framework 2.1 transaction cost economics (tce) theory transaction cost economics (tce) theory provides a valuable framework for understanding the dynamics of strategic alliances and their impact on the sustainability of small and medium enterprises (smes) in rivers state. transaction cost economics developed by oliver williamson, focuses on the costs associated with transactions between economic actors and emphasizes the role of governance mechanisms in reducing these costs (williamson, 1975). in the context of smes, transactions such as sourcing raw materials, accessing markets, and forming partnerships entail various costs, including search costs, negotiation costs, and monitoring costs (williamson, 1975). strategic alliances can be viewed as governance structures that help smes mitigate transaction costs by providing a framework for cooperation and coordination with external partners. rather than engaging in market transactions characterized by uncertainty and opportunism, smes can collaborate with partners to achieve shared objectives (williamson, 1975). for example, a local manufacturing sme in rivers state may form an alliance with a distributor to reduce the transaction costs associated with accessing new markets. by pooling resources and sharing risks with their partners, smes can achieve economies of scale and scope that would be difficult to attain independently. moreover, transaction cost economics highlights the importance of considering the specific attributes of transactions in determining the most appropriate governance structure (williamson, 1981). not all transactions are suited for market exchange, hierarchical control, or strategic alliances. in the case of smes in rivers state, strategic alliances may be particularly beneficial for transactions characterized by asset specificity, uncertainty, and complexity (williamson, 1981). for instance, smes operating in the oil and gas sector may form alliances with larger firms to access specialized equipment and expertise for offshore drilling operations, where investments are highly specific and uncertain. however, while strategic alliances can help smes reduce transaction costs, they also introduce new challenges related to relationship management and coordination. alliances require careful negotiation of terms, clear communication, and ongoing monitoring to ensure that partners adhere to their commitments (williamson, 1985). in the context of smes in rivers state, where business environments may be characterized by cultural diversity and institutional complexity, managing alliances effectively can be particularly challenging (williamson, 1985). transaction cost economics theory offers valuable insights into the role of strategic alliances in enhancing the sustainability of smes in rivers state. by understanding the transaction costs associated with market exchanges and the benefits of alternative governance structures, policymakers and practitioners can develop strategies to support sme development and foster successful alliances in the region. american journal of business management, economics and banking volume 29 october 2024 p a g e | 8 www.americanjournal.org concept of strategic alliance a strategic alliance is a collaborative partnership formed between two or more organizations with the aim of achieving mutually beneficial objectives (kale & singh, 2009). unlike mergers or acquisitions, which involve the integration of businesses, strategic alliances allow organizations to maintain their independence while leveraging each other's strengths and resources. these alliances can take various forms, including joint ventures, licensing agreements, distribution partnerships, and research collaborations. the primary goal of a strategic alliance is to create value for all parties involved by combining complementary resources, capabilities, and market access. strategic alliances are driven by the recognition that no single organization possesses all the resources and capabilities required to succeed in today's complex business environment. by forming alliances, organizations can access new markets, share risks, reduce costs, and enhance their competitiveness (dussauge & garrette, 1999). moreover, alliances enable organizations to respond more effectively to changing market conditions, technological advancements, and competitive pressures. however, successful strategic alliances require careful planning, clear communication, and alignment of goals and strategies among partners. strategic alignment: strategic alignment refers to the degree to which the goals, objectives, and strategies of partnering organizations are congruent and mutually supportive (das & teng, 1998). in the context of strategic alliances, strategic alignment is essential for ensuring that the partnership creates value and achieves its intended outcomes. when organizations share a common vision and strategic direction, they are better able to collaborate effectively, allocate resources efficiently, and pursue shared goals. strategic alignment involves not only agreement on overarching objectives but also alignment of specific activities, processes, and decision-making mechanisms. achieving strategic alignment in strategic alliances requires continuous communication, negotiation, and compromise among partners (inkpen & tsang, 2005). it involves clarifying expectations, defining roles and responsibilities, and establishing mechanisms for monitoring and evaluating progress towards common goals. moreover, strategic alignment requires flexibility and adaptability to accommodate changes in the business environment and evolving priorities. organizations must be willing to realign their strategies and adjust their alliance activities as needed to ensure continued alignment and relevance. resource sharing: resource sharing is a fundamental aspect of strategic alliances, enabling organizations to leverage each other's resources, capabilities, and expertise to achieve shared objectives (parkhe, 1993). in strategic alliances, resources can take various forms, including financial resources, technology, human capital, physical assets, and market access. by sharing resources, organizations can achieve economies of scale, reduce costs, and mitigate risks associated with individual investments. resource sharing in strategic alliances involves identifying complementary resources and capabilities among partners and determining how these assets can be combined and utilized to create value (gulati, 1998). it requires trust, transparency, and mutual benefit to ensure that all parties contribute and benefit from the partnership equitably. moreover, effective resource sharing requires clear agreements and mechanisms for managing and protecting shared assets, such as intellectual property rights and confidentiality agreements. american journal of business management, economics and banking volume 29 october 2024 p a g e | 9 www.americanjournal.org strategic alliances offer organizations a powerful mechanism for achieving strategic objectives, enhancing competitiveness, and creating value. by fostering strategic alignment and resource sharing, organizations can maximize the benefits of their alliances and ensure long-term success in today's dynamic business environment. concept of sustainability sustainability refers to the ability of an organization to meet its present needs without compromising the ability of future generations to meet their own needs (elkington, 1997). in the context of business, sustainability encompasses economic, social, and environmental dimensions, often referred to as the triple bottom line. sustainable organizations strive to balance financial profitability with social responsibility and environmental stewardship, aiming to create long-term value for all stakeholders. sustainable practices involve integrating economic, social, and environmental considerations into decision-making processes and adopting strategies that promote resilience, adaptability, and ethical conduct. achieving sustainability requires organizations to adopt a holistic approach that considers the interconnectedness of economic, social, and environmental factors (hopwood et al., 2005). this involves evaluating the impacts of business activities on stakeholders, communities, and ecosystems and identifying opportunities to minimize negative effects and maximize positive contributions. sustainable organizations invest in innovation, resource efficiency, and stakeholder engagement to enhance their competitive advantage and long-term viability. moreover, sustainability is not a static state but a journey of continuous improvement and learning, requiring organizations to adapt to changing circumstances and emerging challenges. operational efficiency: operational efficiency refers to the ability of an organization to utilize its resources effectively to achieve desired outcomes while minimizing waste, costs, and inefficiencies (chase et al., 2004). in business, operational efficiency is crucial for enhancing productivity, maximizing profitability, and maintaining competitiveness. efficient operations enable organizations to deliver products and services to customers in a timely, cost-effective manner, thereby creating value and generating sustainable growth. achieving operational efficiency involves streamlining processes, optimizing resource allocation, and eliminating bottlenecks and redundancies (slack et al., 2016). this requires a systematic approach to identifying opportunities for improvement, implementing best practices, and leveraging technology and innovation to enhance performance. operational efficiency is not limited to manufacturing or production processes but encompasses all aspects of business operations, including supply chain management, customer service, and administrative functions. organizations can measure operational efficiency using key performance indicators (kpis) such as cycle times, throughput, inventory turnover, and defect rates (kaplan & norton, 1996). continuous monitoring and analysis of these kpis enable organizations to identify areas for improvement and implement corrective actions to optimize performance. moreover, operational efficiency is closely linked to sustainability, as efficient use of resources reduces environmental impact and enhances longterm viability. american journal of business management, economics and banking volume 29 october 2024 p a g e | 10 www.americanjournal.org market expansion: market expansion refers to the strategic initiative taken by organizations to enter new markets or increase their presence in existing markets (ansoff, 1957). market expansion is driven by the desire to capitalize on growth opportunities, diversify revenue streams, and reach new customer segments. for organizations, expanding into new markets offers the potential for increased sales, market share, and profitability, thereby contributing to long-term sustainability and growth. market expansion strategies can take various forms, including geographic expansion, product diversification, and market segmentation (kotler & keller, 2016). organizations may enter new markets through organic growth, acquisitions, alliances, or partnerships, depending on their resources, capabilities, and strategic objectives. successful market expansion requires thorough market research, understanding of customer needs and preferences, and adaptation to local market conditions and regulatory requirements. organizations can measure the success of market expansion initiatives using metrics such as market penetration rates, customer acquisition costs, and revenue growth in target markets (lehmann & winer, 2005). continuous monitoring and evaluation of market expansion efforts enable organizations to assess performance, identify challenges, and adjust strategies accordingly. moreover, market expansion is not a one-time event but an ongoing process that requires agility, innovation, and responsiveness to evolving market dynamics and competitive pressures strategic alliances and the sustainability of smes in rivers state strategic alliances are crucial for the growth and sustainability of small and medium enterprises (smes) in today's dynamic business environment. in rivers state, nigeria, smes face numerous challenges, including limited access to resources, high operational costs, and intense competition. strategic alliances provide a viable solution to these challenges by enabling smes to leverage shared resources, enhance operational efficiency, and expand their market reach (kale & singh, 2009). by forming strategic alliances, smes in rivers state can achieve competitive advantages that are critical for their long-term sustainability. strategic alignment is a key dimension of strategic alliances that significantly impacts the sustainability of smes. strategic alignment refers to the degree to which the goals, objectives, and strategies of the partnering organizations are congruent and mutually supportive (das & teng, 1998). in the context of smes in rivers state, achieving strategic alignment ensures that all partners are working towards common objectives, which enhances coordination and cooperation. for instance, when smes align their marketing strategies, they can jointly access new customer segments and increase their market share. moreover, strategic alignment helps in optimizing resource utilization, as partners can pool their resources to achieve economies of scale, thereby reducing operational costs and increasing profitability. resource sharing is another critical dimension of strategic alliances that contributes to the sustainability of smes. resource sharing involves the exchange and utilization of financial resources, technology, expertise, and physical assets between alliance partners (gulati, 1998). in rivers state, where many smes struggle with limited resources, sharing resources can significantly enhance their operational efficiency. for example, smes can share technological platforms, which can reduce the cost of technology adoption and increase their competitiveness. additionally, by sharing expertise and best practices, smes can improve their management capabilities and operational processes. effective american journal of business management, economics and banking volume 29 october 2024 p a g e | 11 www.americanjournal.org resource sharing requires trust and transparency among partners, ensuring that all parties benefit equitably from the alliance. the impact of strategic alliances on the sustainability of smes can be measured through various indicators, including financial performance, market expansion, and operational efficiency. financial performance is a critical measure of sustainability, as it reflects the profitability and financial health of the business. strategic alliances can enhance financial performance by generating additional revenue streams, reducing costs, and improving access to capital (dussauge & garrette, 1999). market expansion, another measure of sustainability, is facilitated by strategic alliances as smes can leverage their partners' market knowledge and distribution channels to enter new markets and reach more customers. for example, an sme in rivers state can partner with a firm that has a strong presence in another region, thereby expanding its geographic reach and customer base. operational efficiency, a third measure of sustainability, refers to the ability of an sme to utilize its resources effectively to achieve desired outcomes while minimizing waste and costs (chase et al., 2004). strategic alliances enhance operational efficiency by allowing smes to streamline their processes, share production facilities, and benefit from joint procurement. for instance, smes can collaborate on bulk purchasing of raw materials, which can reduce costs and improve supply chain efficiency. the findings from this study underscore the importance of strategic alliances in enhancing the sustainability of smes in rivers state. in conclusion, strategic alliances play a vital role in ensuring the sustainability of smes in rivers state. by achieving strategic alignment and engaging in resource sharing, smes can enhance their financial performance, expand their market reach, and improve their operational efficiency. policymakers and sme owners should therefore prioritize the formation and management of strategic alliances as a key strategy for sustainable business growth. the insights from this study provide a valuable framework for understanding how strategic alliances can be leveraged to overcome the challenges faced by smes and achieve long-term sustainability in a competitive business environment. methodology research design this study employs a quantitative research design to examine the impact of strategic alliances on the sustainability of smes in rivers state. population for the studythe population for the study consisted of ten small and medium enterprises in rivers state sampling technique the sampling technique adopted was the probability sampling method which ensured that every study element had equal chances of being selected. a sample of 250 respondents was randomly selected from ten different smes across various industries within the state to ensure diversity and representativeness. data collection methoddata were collected using structured questionnaire, which included items on strategic alliances, strategic alignment, resource sharing, and measures of sustainability such as financial performance, market expansion, and operational efficiency. american journal of business management, economics and banking volume 29 october 2024 p a g e | 12 www.americanjournal.org data analysis techniquethe collected data was analyzed using the spearman rank-order correlation coefficient to determine the strength and direction of the relationships between the variables. this nonparametric statistical method is particularly suitable for the study as it does not assume a normal distribution of the data, and also effective in handling ordinal data and assessing monotonic relationships. the results of this analysis provide insights into how strategic alliances contribute to the sustainability of smes in the region. data analyses and findings correlations strategic_alignment resource_sharing operational_efficiency market_expansion spearman's rho strategic_alignment correlation coefficient 1.000 .199** .449 .137* sig. (2tailed) . .002 .000 .030 n 250 250 250 250 resource_sharing correlation coefficient .199** 1.000 .604** .440** sig. (2tailed) .002 . .000 .000 n 250 250 250 250 operational_efficiency correlation coefficient .449 .604** 1.000 .655** sig. (2tailed) .000 .000 . .000 n 250 250 250 250 market_expansion correlation coefficient .137* .440** .655** 1.000 sig. (2tailed) .030 .000 .000 . n 250 250 250 250 **. correlation is significant at the 0.01 level (2-tailed). *. correlation is significant at the 0.05 level (2-tailed). the correlation analysis results presented in the table above examine the relationships between strategic alignment, resource sharing, operational efficiency, and market expansion of smes in rivers state. the spearman rank-order correlation coefficients provide insights into the strength and direction of these relationships. the correlation coefficient between strategic alignment and operational efficiency is 0.449, with a significance level (p-value) of 0.000. this indicates a moderate positive correlation that is statistically significant at the 0.01 level. therefore, the null hypothesis (h01) stating that strategic alignment does not relate to operational efficiency was rejected. this result suggests that better strategic alignment within smes is associated with higher operational efficiency, implying that when smes' goals and strategies are well-aligned, they tend to operate more efficiently. the correlation coefficient between strategic alignment and market expansion is 0.137, with a significance level of 0.030. this indicated a weak positive correlation that is statistically significant at the 0.05 level. consequently, the null hypothesis (h02) stating that strategic alignment does not relate to market expansion was also rejected. this finding implies that there is a positive, though weak, american journal of business management, economics and banking volume 29 october 2024 p a g e | 13 www.americanjournal.org relationship between strategic alignment and the ability of smes to expand their market reach. hence, aligning strategies significantly contributes to better market penetration and expansion efforts. the correlation coefficient between resource sharing and operational efficiency is 0.604, with a significance level of 0.000. this indicated a strong positive correlation that is statistically significant at the 0.01 level. thus, the null hypothesis (h03) which stated that resource sharing does not relate to operational efficiency was rejected. this result highlights that effective resource sharing among smes significantly enhances their operational efficiency. when smes share resources such as technology, knowledge, and expertise, they tend to operate more effectively and efficiently. the correlation coefficient between resource sharing and market expansion is 0.440, with a significance level of 0.000. this indicated a moderate positive correlation that is statistically significant at the 0.01 level. therefore, the null hypothesis (h04) which stated that resource sharing does not relate to market expansion was rejected. this finding indicates that resource sharing among smes is positively associated with their ability to expand into new markets. smes that effectively share resources are better positioned to reach new customers and grow their market presence. summary of findings the correlation analysis revealed that both strategic alignment and resource sharing are positively associated with operational efficiency and market expansion of smes in rivers state. the findings underscore the importance of strategic alignment in enhancing operational performance and suggest that resource sharing plays a crucial role in both improving efficiency and facilitating market growth. these insights can help smes and policymakers understand the critical factors contributing to the sustainability and growth of small and medium enterprises in the region. conclusion this study demonstrates the pivotal role of strategic alliances in enhancing the sustainability of smes in rivers state, nigeria. the correlation analysis indicated significant positive relationships between strategic alignment and operational efficiency, as well as between strategic alignment and market expansion. furthermore, resource sharing is shown to have a strong positive correlation with both operational efficiency and market expansion. these findings underscore the importance of strategic alignment and resource sharing in driving the efficiency and market growth of smes. by aligning their strategic goals and effectively sharing resources, smes can improve their operational performance and expand their market reach, thereby ensuring long-term sustainability and competitive advantage. recommendations based on the findings of this study, the following recommendations are made to enhance the sustainability of smes in rivers state through strategic alliances: 1. enhance strategic alignment: smes should invest in developing clear and coherent strategic plans that align with their long-term goals. regular communication and collaboration among partners are essential to ensure that strategic objectives remain aligned and mutually supportive. 2. promote resource sharing: smes should actively seek out opportunities for resource sharing with strategic partners. this includes sharing technological resources, expertise, and market knowledge. establishing formal agreements can help manage and protect shared resources effectively. american journal of business management, economics and banking volume 29 october 2024 p a g e | 14 www.americanjournal.org 3. develop governance structures: implementing robust governance structures is crucial for managing strategic alliances. these structures should include clear roles and responsibilities, decision-making processes, and mechanisms for conflict resolution to ensure smooth cooperation and coordination among partners. 4. invest in training and development: smes should invest in training and development programs for their employees to enhance their skills in managing strategic alliances. this includes training in negotiation, communication, and project management. 5. leverage technology: smes should leverage technology to facilitate collaboration and resource sharing. this includes using digital platforms for communication, project management, and data sharing to enhance efficiency and transparency in alliances. 6. monitor and evaluate alliances: regular monitoring and evaluation of strategic alliances are essential to assess their performance and impact. smes should establish key performance indicators (kpis) to measure the success of alliances and make necessary adjustments to improve their effectiveness. references 1. adebisi, j. f., & olayinka, m. (2013). the impact of microfinance on small and medium enterprises in nigeria. journal of business and management, 7(1), 55-61. 2. ansoff, h. i. (1957). strategies for diversification. harvard business review, 35(5), 113-124. 3. chase, r. b., jacobs, f. r., & aquilano, n. j. (2004). operations management for competitive advantage. new york: mcgraw-hill/irwin. 4. ebitu, e. t., basil, g., & ufot, j. a. (2016). an appraisal of nigeria’s micro, small and medium enterprises (msmes): growth, challenges and prospects. international journal of small business and entrepreneurship research, 4(4), 1-15. 5. elkington, j. (1997). cannibals with forks: the triple bottom line of 21st century business. capstone publishing. 6. gulati, r. (1998). alliances and networks. strategic management journal, 19(4), 293-317. 7. hopwood, b., mellor, m., & o'brien, g. (2005). sustainable development: mapping different approaches. sustainable development, 13(1), 38-52. 8. kaplan, r. s., & norton, d. p. (1996). the balanced scorecard: translating strategy into action. boston, mass: harvard business review press. 9. kotler, p., & keller, k. l. (2016). marketing management. harlow: pearson. 10. lehmann, d. r., & winer, r. s. (2005). analysis for marketing planning. new york: mcgrawhill/irwin 11. nwigwe, c., acha, i., & nnamocha, p. (2013). financial intermediation and economic growth in nigeria: the impact of microfinance. international journal of small business and entrepreneurship research, 2(1), 17-31. 12. ogujiuba, k. k., ohuche, f. k., & adenuga, a. o. (2013). credit availability to small and medium scale enterprises in nigeria: importance of new capital base for banks background and issues. central bank of nigeria economic and financial review, 41(4), 18-40. 13. osano, h. m., & koine, p. w. (2016). role of foreign direct investment on technology transfer and economic growth in kenya: a case of the energy sector. journal of innovation and entrepreneurship, 5(1), 31-45 american journal of business management, economics and banking volume 29 october 2024 p a g e | 15 www.americanjournal.org 14. slack, n., brandon-jones, a., & johnston, r. (2016). operations management. harlow, england: pearson. 15. williamson, o. e. (1975). markets and hierarchies: analysis and antitrust implications. new york: free press. 16. williamson, o. e. (1981). the economics of organization: the transaction cost approach. american journal of sociology, 87(3), 548-577. 17. williamson, o. e. (1985). the economic institutions of capitalism: firms, markets, relational contracting. new york: free press. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 65 www.americanjournal.org possibilities of banks to increase lending efficiency of territories buribaev erkinjon narbay ugli gulistan state university doctoral student, ph.d е-mail: boribayeverkinjon@gmail.com orcid:0009-0003-9113-7423 a b s t r a c t k e y w o r d s the article analyzes the significance of commercial banks in regional lending and its impact on economic development. loans provided by banks play a crucial role in supporting stable regional development and small and medium enterprises. the main challenges in the lending process, such as high interest rates, low financial literacy, and underdeveloped infrastructure, are examined. the article also provides recommendations based on advanced international practices to support regional development in uzbekistan. regional lending, commercial banks, economic development, small and medium enterprises, financial literacy. introduction regional lending is an important tool for supporting economic development in developing countries. in uzbekistan, the process of crediting regions has a special place in the state policy because bank loans play an important role in reducing economic differences between regions and developing small and medium-sized businesses. decree no. 5789 of the president of the republic of uzbekistan, "on measures to support regional economic development and lending," is aimed at encouraging regional lending and encouraging commercial banks to allocate more finance to the agricultural and industrial sectors[2]. also, the amount of loans directed by banks to small and medium business entities is increasing. at the same time, there are a number of problems in the regional lending process, one of which is high interest rates and low financial literacy. the underdevelopment of infrastructure and limited access to bank loans, especially in rural areas, remain one of the important obstacles. in 2023, the volume of lending in uzbekistan will reach 496 trillion soums, but economic activity in some remote areas is still at a low level[1]. it is important to strengthen the cooperation between commercial banks and the state, as well as to apply the experience of developed countries, in order to effectively establish regional lending and further develop it. the article analyzes the role of commercial banks in the process of crediting regions, its impact on economic development, and the possibilities of improving this process. american journal of business management, economics and banking volume 29 october 2024 p a g e | 66 www.americanjournal.org material and method in the preparation of this article, the sources that serve to increase the efficiency and lending of commercial banks to the regions and the data of the world bank were analyzed. based on the method of comparative analysis, the credit system in each country and their contribution to regional development were studied. results research into the role of commercial banks in regional lending shows that lending to small businesses and private entrepreneurs (sbes) in rural areas has historically been low. however, government initiatives have helped increase lending in recent years. as noted by economist shodmonov, although lending to small and medium-sized enterprises in rural areas was previously at a low level, statesponsored programs played an important role in expanding credit opportunities in rural areas[4]. in particular, rural areas such as the fergana valley and karakalpakstan are areas that cannot attract sufficient investment, sodikova says[6]. according to him, the problems in these regions are often related to the conservative lending criteria of the banking sector, which often do not correspond to the economic needs of the regions. in addition, the government introduced special credit programs for key sectors such as agriculture and industry in the bukhara and khorezm regions. these programs are supplemented by subsidies and tax breaks to encourage banks to invest more in regional projects. according to karimov, state-supported initiatives have achieved some success, and between 2018 and 2020, loan portfolios in the regions increased by approximately 15%[3]. however, issues such as high interest rates and limited access to capital for small businesses still remain significant barriers. infrastructure development is another important factor affecting the efficiency of regional lending. banks are generally more inclined to lend in areas with well-developed infrastructure. weak infrastructure is a significant barrier to access to credit in many rural areas, increasing lending costs and reducing repayment rates. according to the research of rahmonov and ibragimov, the volume of lending in tashkent and samarkand regions, which have good infrastructure, was much higher than in surkhandarya and khorezm regions, which did not have developed infrastructure[4]. nevertheless, despite the positive trends, a number of problems remain in the field of territorial lending in uzbekistan. high interest rates, in particular, remain a major obstacle for borrowers in rural areas. in most cases, interest rates on regional loans are in the range of 15-20% per annum, which scares off many potential borrowers. in addition, in rural areas, the lack of sufficient collateral complicates obtaining credit. another important issue is the low level of financial literacy in rural areas of uzbekistan, which limits individuals and businesses from taking the right approach in the lending process. as nasriddinov (2020) points out, high interest rates and these structural problems make borrowing difficult, and he believes that government guaranteed programs can help lower these rates[8]. the question of improving the efficiency of lending to regions is one of the important factors of economic development. before answering this question, it is necessary to understand how regional lending affects economic development and why it is necessary to direct it effectively. economic development of regions is one of the main means to ensure sustainable development of the whole country, because each region has different economic resources, opportunities and problems. therefore, in the process of regional development, commercial banks and their lending activities play an important american journal of business management, economics and banking volume 29 october 2024 p a g e | 67 www.americanjournal.org role. first of all, the loans provided by commercial banks in the regions are of decisive importance in supporting economic activity. small and medium-sized enterprises will have the opportunity to expand their activities, modernize production and create new jobs through loans provided by banks. in this way, the economic activity in the regions will increase, the income of the population will increase and the standard of living will be improved. however, in order for this process to be carried out correctly and efficiently, it is necessary to improve the lending mechanisms. firstly, for the sustainable economic development of the regions, it is necessary to increase the volume and quality of loans provided by commercial banks. in many cases, due to the insufficient development of regional credit, economic growth slows down in some regions and entrepreneurial activity is limited. this deepens socio-economic problems in the regions. for example, the lack of credit resources in economically weak regions such as the republic of karakalpakstan, khorezm, syrdarya, and surkhandarya regions, compared to developed regions such as the tashkent region, reduces the possibility of expanding the activities of enterprises. this causes uneven development of economic activity and economic differences between regions. therefore, by increasing the effectiveness of regional lending, it is possible to create the same economic conditions in all regions of the country, provide support to enterprises, and ensure the development of regions. second, it is possible to support small and medium-sized businesses by increasing the efficiency of regional lending. small and medium-sized businesses are the engine of the economy in many developed countries. they play an important role in creating new jobs, introducing innovations, and ensuring economic stability. in most cases, the lack of financial resources is an obstacle to the development of small and medium-sized businesses in the regions. through loans provided by commercial banks, small and medium-sized businesses can expand their activities and produce new products and services. credit programs aimed at the agricultural, industrial, and service sectors in the regions play an important role in this. by increasing the efficiency of lending, banks can expand their scope of activity, support new business entities in the regions, and stimulate regional economic growth. debate the results of the analyses and studies carried out during the research show that the ineffectiveness of regional loans in uzbekistan is creating many obstacles and problems in the development of the country's economy. regional lending is an important tool for developing cooperation between the public and private sectors, ensuring economic growth, and creating new jobs. however, the available analyses and statistics show that the effectiveness of regional loans is insufficient. the reasons for this and the ways to determine it depend on a number of factors. first of all, it can be said that the loans allocated to the regions are related to the fact that financial resources are not being used effectively. in some regions of uzbekistan, the impact of loans on economic activity remains low. for example, loans directed to farmers and agricultural entities in the agricultural regions of the country are not effective enough. this may be due to the low financial literacy of farmers and entrepreneurs and the lack of proper financial planning and management mechanisms in the lending process. as a result, allocated loans are not fully effective and do not provide an opportunity to achieve development goals. secondly, the ineffectiveness of regional lending is also reflected in the wrong direction of loans. in some cases, loans may be distributed under the influence of specific stakeholders rather than based on american journal of business management, economics and banking volume 29 october 2024 p a g e | 68 www.americanjournal.org regional economic needs and opportunities. this situation shows the high level of corruption and the underground economy. for example, loans that should be allocated to small and medium-sized business entities operating in the regions are in some cases directed to large companies or projects related to officials. this has a negative impact on the reduction of entrepreneurship and regional development. the inefficiency of regional loans is also caused by the lack of economic infrastructure and favorable conditions. although the allocated loans are expected to increase economic activity in rural areas and create new enterprises, the lack of infrastructure complicates this process. for example, in areas with inadequate roads, electricity supply, or water infrastructure, the allocated loans may not be used effectively. in addition, limited banking services or poor lending conditions have a negative impact on regional development. in the process of obtaining credit, entrepreneurs and farmers face difficulties in accessing financial resources, which causes ineffectiveness of loans. another important factor is that the amount of loans and interest rates do not correspond to the needs of economic development. in most cases, the volume of loans allocated to the regions will not be sufficient. for example, in 2021, the total volume of loans directed by banks to regions was 25% of gdp, while in developed countries this figure is 40% and higher[1]. the lack of targeted loans for small and medium-sized business entities limits their activity; the possibility of creating new jobs decreases. in addition, high interest rates on loans also reduce the demand for loans by entrepreneurs. in many cases, obtaining 16-17% interest loans for small enterprises can be an excessive financial burden, which leads to a decrease in economic activity. summary as a result of the conducted studies and analysis, we formed the following general conclusions: by increasing the effectiveness of regional lending, small businesses and private enterprises will have the opportunity to expand their activities, develop infrastructure, and create new jobs. this process serves the stable development of the country's economy. regional development helps to expand economic opportunities and ensure social stability in all regions of the country through effective lending; support of small businesses and private enterprises is the locomotive of the country's economy, especially in developing regions, where their development is important. through region-oriented loans, small and medium-sized businesses will have the opportunity to expand their products and services, enter new markets, and introduce innovations. also, supporting small businesses and private enterprises will help create new jobs and increase the income of the population. this serves to reduce social problems in the regions and improve the living conditions of the population. corruption and a lack of transparency in regional lending are two of the important obstacles. when allocated loans are misdirected, regional development slows down, and it becomes difficult for entrepreneurs to access financial resources. corruption has a negative impact on the activity of commercial banks and leads to inefficient allocation of investments. the effectiveness of regional lending can be improved by increasing transparency and fighting corruption. the efficiency of loans directed to the regions largely depends on the development of the infrastructure. lack of infrastructure such as roads, electricity, water, and telecommunications in rural areas hinders proper utilization of loans. therefore, infrastructure development is an important factor in increasing regional lending efficiency. american journal of business management, economics and banking volume 29 october 2024 p a g e | 69 www.americanjournal.org in conclusion, infrastructure improvement is the main factor for increasing the effectiveness of regional development loans. investments directed to infrastructure by the state and infrastructure projects implemented in cooperation with banks increase economic activity in the regions and ensure the return and efficient use of bank loans. references: 1. central bank of uzbekistan. (2023). "annual report on monetary policy and banking system development" available at: www.cbu.uz 2. decree of the president of uzbekistan no. 5789. (2019). "on measures to further enhance regional lending and support for small and medium enterprises" available at: www.lex.uz 3. karimov, r. (2021). "challenges in rural financing in uzbekistan: an analytical overview" journal of central asian economics, 45(2). available at: www.caeconjournal.com 4. rahmonov, a. & ibragimov, s. (2019). "infrastructure development and its impact on regional lending in uzbekistan" economic research journal. available at: www.erj.uz 5. shodmonov, b., et al. (2020). "expanding access to credit for smes in rural uzbekistan: government initiatives and results" economic policy review, 38(4). available at: www.epr.uz 6. sodikova, g. (2020). "commercial banking and regional development in uzbekistan." central asia finance journal. 7. karimov, b. (2021). "government policies on regional lending: an assessment." uzbekistan financial review. 8. nasriddinov, t. (2020). "challenges in regional lending in uzbekistan." central asian economic review. 9. world bank group. (2022). "uzbekistan economic update: expanding financial inclusion" available at: www.worldbank.org 10. transparency international. (2022). "corruption perception index 2022: uzbekistan." available at: www.transparency.org 11. nasriddinov, m. (2020). "financial literacy and its role in expanding access to credit in uzbekistan" uzbek banking association bulletin. available at: www.uba.uz 12. world bank information. (2023). "financial indicators and economic analysis" available at: www.worldbank.org 13. uzbekistan banking sector overview. (2023). "the state of regional lending in uzbekistan" available at: www.bankingoverview.uz https://www.cbu.uz/ https://www.lex.uz/ https://www.caeconjournal.com/ https://www.erj.uz/ https://www.epr.uz/ https://www.worldbank.org/ https://www.transparency.org/ https://www.uba.uz/ https://www.worldbank.org/ https://www.bankingoverview.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 44 www.americanjournal.org human resource development and organizational performance in local government councils, rivers state, nigeria maxwell nwinye department on management, faculty of management sciences university of port harcourt a b s t r a c t k e y w o r d s this study examined human resource development and organizational performance in local government councils, rivers state, nigeria. the researcher concentrated on training and mentoring as measures of human resource development whereas customer satisfaction and employee satisfaction were carefully regarded as proxies of organizational performance. population size for the study was 341 employees selected from 12 local government councils, rivers state. the sample size was 184 employees including head of personnel management (hpm), director of budget, and senior staff chosen from local government councils. taro yamane’s formula was used to determine the sample size. the researcher adopted a cross-sectional descriptive research design random sampling method. instrument used for data collection were primarily questionnaire and information from rivers state local government service commission bulletin. the hypotheses were tested using spearman correlation coefficient. the findings indicated that there was significant positive relationship between training and customer satisfaction in the local government councils. the researcher concluded that an increase in human resource development leads to high performance in local government councils. the researcher also recommends that chairmen of local government councils should provide opportunities for training of both employees and political appointees to create customer satisfaction and high performance or dividend of democracy. human resource development, training, mentoring, organizational performance. introduction human resources play a vital role in every organization. even if the local government council has plenty money, good information with conducive facilities but where the level of manpower is poor, the council may not achieve adequate productivity. sullivan (2011) emphasized that global competition has created a rapid step of change which requires organizations to update the skills of employees with low skills or experience, necessary for competitive advantage. ordinarily, the role of head of personnel management (hpm) in local government council, is to develop processes or policies that could increase workers knowledge, learning, and skill development while minimizing the level of absenteeism, low american journal of business management, economics and banking volume 26 july 2024 p a g e | 45 www.americanjournal.org performance, to achieve high productivity. the chairmen of local government councils are to invoke competitive intelligence by training and developing the workers to compete with other organizations in order to increase profitability and productivity. coleman (1988) described human resource development as a process of improving the individual’s knowledge, skills, and abilities that are needed for changes in economic growth. the employees knowledge, skills, and learning could be efficient through a formal training and education. rodrigues et al. (2010) also classified human resource development as form of competencies such as skills and technical knowhow available in an economy. noudhaug (1998) declared that human resource development influences performance and sustainability in any economy system. similarly, human resource development refers to the process by which the organization empowers their employees to acquire knowledge, skills, and abilities through strategic planning with the aim of performing various tasks. it is also a management strategy of helping workers to become experts in their career. human resource is the most dynamic asset of all the organizations which needs substantial attention by the local government administration, essential to realize employees full potentials at work. barney (1991) noted that human resource development is very decisive in attaining leadership, innovation, motivation, training and development, flexibility, speed, adaptivity, discovering and exploiting business opportunities. organizational performance entails the comparison of an organization's goals and objectives with its actual performance in three distinct areas like market performance, financial performance, and shareholders value (milah, 2018). thus, organizational performance is the extent to which an organization achieved its objectives, profit, and survival (arnold, 2004). organizational performance relates to act of producing what the market needs, using the fewest possible inputs to achieve efficiency. it is an organizational level of output or productivity, job satisfaction, and effectiveness. however, the chairmen or managers do not realize the importance of having efficient manpower and improving the human resource as one of the key elements that contributes to achievement of organizational performance. this attracted the passion for this study, which examines human resource development and organizational performance in local government councils, rivers state, nigeria. literature review human resource development human resource development denotes the process of acquiring and increasing the number of workers who have the skills, education, and experience that are indispensable for economic growth and survival of an organization (okojie, 2005). among all the factors of production, only humans that are capable of learning, innovative, adapting, and creative. ejere (2011) postulated that human resource represents the human factor in the production process and imbedded with the combined competencies, knowledge, skills and abilities of the workforce. human resource development (hrd) is the province that performs core function in an organization for the improvement of personal and professional skills, knowledge, and capabilities of workers. warshauer (1988) claimed that human resource development includes training, mentoring, coaching, career development, organization development, knowledge management, and succession planning. besides, human resource development helps both organizations and employees to achieve maximum satisfaction and work goals. in affirmation, harbison (1973) unveiled that human resource development is the deliberate and continuous process of acquiring requisite skills, knowledge, and experiences that are useful to produce economic value for driving american journal of business management, economics and banking volume 26 july 2024 p a g e | 46 www.americanjournal.org sustainable national development. if companies or councils did not invest in training and development of employees, the thought of having productivity, expanding agriculture, and sustained economic growth may be a joke and not reality. indeed, organizations that implement human resource development are capable of benefiting from industrialization, socio-economic and political transformation. dauda (2010) noted that the level of socio-economic development across nations is not only attributed to natural resources, physical capital, and endowments but to the quality and quantity of human resources. the wealth and prosperity of nations depend on the development of people and the effective commitment of their energies and talents. human resource development constitutes the ultimate basis for the wealth of nations and exploitation of natural resources (harbison, 1973). furthermore, inadequate human development, poor policy, and personal gain infrastructure, have contributed to mismanagement or misuse of resources at the local government councils. a country’s competitiveness in the new international economic order (nieo) is strongly related to the quality of her workforce. hence human resource development is indisputably a necessity for any meaningful programme of socio-economic development of nigeria (soryadian, 2000). moreover, mullins (1993) narrated that human resource development could be in form of ceremonial programs, workshops, college course, classroom training sessions, and mentoring of subordinates by their superiors. organizations that intend to grow and become more effectively utilize an extensive portion of their resources in human resource development. training: training connotes a systematic approach to learning and development to improve workers, team, and organizational effectiveness (goldstein & kraiger, 2002). training entails the systematic modification of behavior through learning which occurs as a result of education, instruction development, and planned experiences (owens, 1998). training is the systematic process of improving or advancement of individual attitude, skill, and behavior pattern required to perform adequately a given task. training tried to change the behaviour of the employee in the organization to increase employee’s skills according to establish standard. the organizations apply training tool when they want to change process of manufacturing or service, to acquire a new skill for better career paths and employability. manpower training and development has the key role in improving knowledge and skills of workers in the organization. human resource professionals are also very important for local government council or any organization (yoder, 1993). when organizations train and develop their employees, they may have optimal performance. apparently, implementation of training system in company could expand some factors namely job satisfaction, productivity, customer satisfaction. employee confidence, revenue, and increased profit (aktar & pangil, 2017). effectiveness of training and manpower development could lead to enhancement of salary, technical skills, improve profit, productivity, and employee’s performance in a local government council (david, 2008). organizations that fail to train and transfer knowledge to the employees are likely to face some difficulties in competing with other firms. newstrom & davis (2001) stated that training enables workers to enhance efficiency and effectiveness. training plays a significant role in maintaining sustainability, development of organizations, increasing productivity, as well as enhancing performance and ultimately putting companies in the best position to face competition (boldizzoni, 2008). this suggests that, there is a significant relationship between organizations that train their employees and organizations that do not. only few employees that perhaps american journal of business management, economics and banking volume 26 july 2024 p a g e | 47 www.americanjournal.org loyal to the executive chairman of the local government have received little training and development (ighodaro, 2005). consequently, the chairmen are obliged to put strategies and policies into action to ensure that employees are properly trained in order to meet the standards of the growing technology. egungwu (2002) pronounced that organizations that is committed to generate profits and providing quality service for its customers, stakeholders, must invest in the training of employees. mentoring: ensher and murphy (1997) described mentoring as strong caring relationship in which individuals with more experience work with less experienced persons to promote both professional and personal development. eric (1999) asserted that mentors are persons who guide or lead others along the journey of our lives, they cast light on the way ahead, and interpret hidden signs. mentoring signifies a process where the principal or mentor teaches the subordinate or the mentee how to perform effective job. the beneficiary of the process is called the mentee. employees that are mentored enjoy higher self-assurance, self-confidence, and self-efficacy. mentoring is expressly important to new employees, new career professionals, first-generation university students, and those entering fields dominated by persons of a different gender or race (soryadian, 2000). mentoring does not only convey formal academic knowledge and provides socialization experiences into mentee chosen discipline, but also reinforced the employee’s confidence and professional identity (zachary, 2000). mentors who claimed to perform the roles of mentorship without equipping themselves with the competitive knowledge are often disappointed and dissatisfied. ordinarily, mentors need to be comfortable in using a range of process skills through motivation for engaging in a mentoring relationship. however, if the mentee is not ready to assume the degree of responsibility, the mentor has to develop the mentee’s capacity for self-direction over the course of the relationship. moreover, considering the growing need for ultimate learning in all sectors of work and community life, it may be more desirable for an employee to have multiple mentors. in order to have a solid foundation for an effective mentoring relationship, mentor’s ought to have a clear understanding of their own personal journeys and needs of the mentees. ensher et al., (2003) disclosed that a constructive discussion is no-fault, blameless, and reflective conversation about the process and content of the learning. thus, both mentors and mentees exchange, knowledge and how they may apply and leverage that knowledge in the future. zachary (2000) advised that even when a mentoring relationship has become tormented with problems, to reach a learning-focused conclusion could covert the whole experience into a positive result. organizational performance arnold (2004) indicated that organizational performance is the degree to which an organization achieved its objectives. basically, three economic goals such as growth, survival, and profitability determine the future of viable business organization. apparently, organizations without adequate performance data are likely to go windup or closure. organizational performance symbolizes the ability of the firm to utilize human and material resources to boost productivity, efficiency, profitability, and job satisfaction. the performance of a local government council and related firms is centered on availability of durable infrastructures, agriculture, factories, survival, and profitability (novak, 2017). performance is the yardstick for measuring the success and progress of any effective organization (nwude & uduji, 2013). measuring performance is a vital part of monitoring an organization’s progress (nzewi & ojiagu, 2015). it encompasses measuring the actual performance outcomes or american journal of business management, economics and banking volume 26 july 2024 p a g e | 48 www.americanjournal.org results of an organization against its intended goals. okpara and kenny (2019) noted that the end result of activity and the appropriate measure carefully chosen to assess corporate performance depends on the type of organization and the objective to be achieved through that evaluation. ogosi and agbaeze (2018) declared that if the employees in an organization are to perform their duties and make meaningful contributions to the success of organization, they have to acquire relevant skills and knowledge through training. organizational performance cannot be successfully achieved in a vacuum without employee's training (novak, 2017). organizational performance has been the most important issue for every organization either profit or nonprofit oriented. indeed, organizational performance is domineering towards meeting the demands of an increasingly complex and dynamic environment. knowledge and effective decision making are helpful in organizational performance which entails getting focus on important goals, and involving others in achieving them. organizational performance is accomplished through indicators like employee satisfaction, customer satisfaction, innovation, effectiveness, and efficiency (kenny, 2019). however, for the purpose of this work, the focus is on two measures of organizational performance such as employee satisfaction and customer satisfaction. customer satisfaction: customer satisfaction relates to organization’s ability to attract and retain customers and to improve customer relationship over time (khan & fasih, 2014). ordinarily, coelho and henseler (2012) argues that customer satisfaction denotes psychological, social, and physical variables, which correlate with the concept of a satisfied customer. chen (2010) advocates that customer satisfaction is the result of a customer's comparison of perceived quality and actual service performance. customer satisfaction entails the degree to which a consumer believes that the use of a specific service may induce positive feelings. although, customer satisfaction symbolizes the physiological state of human feeling associated with the conformity or nonconformity of a perceived quality of service during and after service experience (kaura, et al., 2012). in addition, customer satisfaction is conceived as happiness, pleasure, based upon the kind of service organizations rendered to the customer at a specific purchase instance. customer satisfaction could also be influenced by service features, product perceptions, price, and service quality. however, customer perception has a direct effect on how customers evaluate the service (liu & jang, 2009). the success of business organizations or local government councils depend on the satisfaction of the customers. there are two categories of customers in every organization namely internal customers and external customers. internal customers include employees and employers while external customers represent the people or grass root members, suppliers, agents, buyers, and distributors who evaluate the quality of service of the organization. whenever a local government council is about to start a project, the needs or satisfaction of the people have to come first before the personal gain of the chairman (karatepe, 2011). any organization that tries to satisfy the customers may remain in the top position in a market. customer satisfaction is the key component that plays a dynamic role to expand the market value. indeed, customers are those individuals who buy goods and services from the market or organization that meet their desires. they are also those persons that benefit from the services or projects of an organization. customers purchase services or products to fulfil their expectations in terms of money. consequently, companies and local government councils are to determine their pricing with the quality of the product or service, that attracts the customer in order to maintain the long-term affiliation. caruana (2002) stated that when local government councils provide overflowing services, projects american journal of business management, economics and banking volume 26 july 2024 p a g e | 49 www.americanjournal.org equivalent to their monthly allocation, it could increase the satisfaction of customers and maintain the long-term relationship between the people and the organization. existing customer uses the good work of an organization to attract the new customers by providing or sharing the information about the products and services of the organization. if a customer’s satisfaction is earned, it leads to customers, followers, and employee loyalty. moreover, in the absence of the customer, a business organization cannot not exist. godson (2009) noted that to increase the number of the customers, development of customer’s satisfaction is very imperative to achieve business goals. employee satisfaction: employee satisfaction is indispensable to the success of any business. investing in professional development for workers could lead to greater job satisfaction. new cranny et al., (1992) considered employee satisfaction as the mixture of affective reactions to the differential perceptions of what the employee wants to receive compared with what he actually receives. moyes et al. (2008) insisted that employee satisfaction may be described as the happiness or pleasure which the employee gets from his position of employment. employee satisfaction signifies employee reasoning and affective evaluation of the benefits from his job. keeping the morale of workers high could be of fabulous benefit to any organization, as happy employees are likely to be serious with their jobs, produce more, reduce absenteeism, and stay loyal to the company. apparently, emotional state of the employees may also affect their satisfaction. therefore, organizations have to make their workers happy by providing basic needs, training, and achievement which attract job satisfaction. organ and ryan (1995) noted that employee satisfaction is one of the conditions of organizational citizenship behavior, where a satisfied employee is willing to add more efforts towards productivity and contributes to the effectiveness of the organizations. employees appears to be one of the most significant pillars on which the building of organization stand. organizations have many resources that may be divided into physical and human resources. utilization of non-human or physical resources is not possible without the efforts of the employees or human resource. accordingly, human resource is the asset that enables organizations to gain from other sources. schneider (1987) emphasized that satisfied employees offer huge returns to organizations as well as improving job performance. when employees are dissatisfied, they are likely to exhibit low performance or lack of concern for organizational needs. kreitner and kinicki (2006) narrated that workers are discourage when they observe limited opportunity for growth, high stress, delay in promotion, poor communication network, and lack of recognition. methodology the researcher employed cross sectional descriptive research design. the decision to apply this design helps to understand the entire selected participants. population of the study covers 341 selected employees from 12 local government councils in rivers state. the selected employees include head of personnel management (hpm), director of budget, and senior staff. in this study, the workers were randomly chosen to enhance result accuracy. information regarding the number of selected employees in 12 local government councils was disclosed through rivers state local government service commission bulletin. primary and secondary data were useful with the aid of questionnaire. taro yamane’s formula was applied to discover a sample size of 184 employees available for the scientific enquiry. copies of questionnaire were distributed to the participants for the purpose of collecting data. the questionnaire was organized as human resource development and organizational performance american journal of business management, economics and banking volume 26 july 2024 p a g e | 50 www.americanjournal.org questionnaire (cohen et al., 2011). it was also divided into three sections like section a, b, and c, where a represents participants profile, b focused on independent variable, and c deals on dependent variable. these questions were stated in an ordinal scale using the 5-point likert’s scale of 1 (strongly disagree), 2 (disagree), 3 (neutral), 4 (agree), and 5 (strongly agree). spearman rank correlation coefficient was utilized as the statistical instrument for this study. the reliability of the research instrument was confirmed in cronbachs alpha, where if the result is above 0.70, it shows that the research instrument for the study was reliable. table 1 participant population local government councils in rivers state selected employees 1 ahoada east 21 2 etche 24 3 omuma 21 4 ahoada west 20 5 degema 22 6 eleme 23 7 asari-toru 20 8 9 10 11 12 emohua ikwerre khana obio-akpor port harcourt 25 29 31 57 48 total 341 source: rivers state local government service commission bulletin, 2022. hypotheses formulated for this study include: ho1: there is no significant relationship between training and customer satisfaction in local government councils, rivers state, nigeria. ho2: there is no significant relationship between mentoring and employee satisfaction in local government councils, rivers state, nigeria. results and discussion test of hypotheses ho1: there is no significant relationship between training and customer satisfaction in local government councils, rivers state, nigeria. american journal of business management, economics and banking volume 26 july 2024 p a g e | 51 www.americanjournal.org ha1: there is significant relationship between training and customer satisfaction in local government councils, rivers state, nigeria. table 2 spearman correlation coefficient between training and customer satisfaction correlations training customer satisfactio n spearman's rho training correlation coefficient 1.000 .974** sig. (2-tailed) . .000 n 184 184 customer satisfaction correlation coefficient .974** 1.000 sig. (2-tailed) .000 . n 184 184 **. correlation is significant at the 0.01 level (2-tailed). the results proved that p-value is 0.000 and r-value is 0.974 which means the relationship between training and customer satisfaction is statistically significant. the illustration indicated that p-value is less than 0.005 and the null hypotheses is rejected. when local government councils offer appropriate training to employees, they may express happiness, satisfaction, which lead to customer satisfaction or improved performance. ho2: there is no significant relationship between mentoring and employee satisfaction in local government councils, rivers state, nigeria. ha2: there is significant relationship between mentoring and employee satisfaction in local government councils, rivers state, nigeria. table 3 spearman correlation coefficient between mentoring and employee satisfaction correlations mentoring employee satisfaction spearman's rho mentoring correlation coefficient 1.000 .980** sig. (2-tailed) . .000 n 184 184 employee satisfaction correlation coefficient .980** 1.000 sig. (2-tailed) .000 . n 184 184 **. correlation is significant at the 0.01 level (2-tailed). american journal of business management, economics and banking volume 26 july 2024 p a g e | 52 www.americanjournal.org in table 3, the results showed that p-value is 0.000 and r-value is 0.980 which disclose that the correlation between mentoring and employee satisfaction is statistically significant. this advocates that the p-value is 0.000 which is less than 0.005, hence, null hypothesis is rejected while the alternative hypothesis is accepted. thus, the r-value is 0.995 which indicates a high positive significant relationship among the variables. it unveils that an increase in mentorship may generate more employee satisfaction, where the senior employees could add value to dividend of democracy. discussion of findings hypothesis one results show that there is significant positive relationship between training and customer satisfaction in local government councils, rivers state. the findings illustrate that when the employees in the local government councils are properly trained, they may demonstrate satisfaction but in exchange they become creative, skillful, to enhance performance and customer satisfaction. this result is similar to milah (2018) who investigated the impact of employee job satisfaction towards organizational performance. a study of private sector employees in kuching, east malaysia. the findings reveal that extrinsic or intrinsic motivation given to workers in an organization has a significant influence on the worker's performance and customer satisfaction. similarly, the findings are consistent with aktar and pangil (2017) who stated that, implementation of training system in organizations could expand some factors namely job satisfaction, productivity, customer satisfaction. employee confidence, revenue, and increased profit. the results in hypothesis two, disclose that there is significant positive relationship between mentoring and employee satisfaction in local government councils, rivers state. this indicates that when top executives or employees mentor their subordinates by teaching, transferring knowledge, guiding the workers as well as political appointees against failure, there is the possibility of having job satisfaction and organizational performance. this result is also in harmony with mehmet et al. (2014) who examined analysis of relationship between organizational learning capacity and organizational performance. a case study of banking sector in nigeria. it was found that mentoring of employees contributes to job satisfaction and high productivity in the organization. conclusion the findings reported in this study reveal that training has an impact on the performance of employees and organization. results display that when a systematic approach is adopted in selection of employees for training without discrimination, it enhances performance and customer satisfaction. this result is basically consistent with some of the literatures available for this study. organizational performance could be achieved through the implementation of the measures of human resource development such as training and mentoring. therefore, the researcher concludes that there is significant positive relationship between training and customer satisfaction. availability of mentoring influences employees job satisfaction. an increase in human resource development leads to high performance in local government councils. the recommendations: i. chairmen of local government councils and supervisors should provide opportunities for training of both employees and political appointees. the selection should be based on merit or fairness and american journal of business management, economics and banking volume 26 july 2024 p a g e | 53 www.americanjournal.org the training must be on human needs to create customer satisfaction and high performance or dividend of democracy. ii. chairmen of local government councils and head of local government administrators (hlga) should promote mentoring where the workers could learn, acquire skills, transfer knowledge, to enhance self-fulfilment needs of the employees and job satisfaction. iii. local government councils should give attentions to human resource development which serves as a major confidence booster for employees to improve job performance. references 1. aktar, a. & pangil, f. 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(2000). the mentor’s guide: facilitating effective learning relationships. jossey-bass. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 20 www.americanjournal.org ways to improve local budget revenue growth kudaybergenova guzal tashkent state university of economics. assistant of the department of finance and scientific technologies a b s t r a c t k e y w o r d s ways to improve the increase of local budget revenues are considered. factors affecting tax revenues of local budgets are analyzed. also, the tax rates collected from the income of individuals in the countries of the world were comparatively analyzed. budget revenues, tax, local budget, tax policy, investment environment. introduction in world practice, the main way to solve the problem of giving priority to one of the development of production and consumption in the most cultural way is the rational use of the group of direct and indirect taxes in the formation of state budget revenues. if priority is given to the development of production at a certain stage of development, then the main fiscal function of taxes is indirectly assigned to taxes. in this case, direct taxes come into play as the main lever of production development. however, the existence of problems and differences in the mechanism of calculation and collection of direct taxes in the formation of state budget revenues in the world, the issues of their influence on the stability of budget revenues have not yet found their positive solution. in uzbekistan, based on the concept of improving the tax policy, large-scale reforms are being carried out in order to simplify the tax legislation, reduce the tax burden, fully cover the objects of taxation and increase the collectibility of taxes. also, today, the experience of our country in the formation of state budget revenues, along with its positive aspects, shows the relative instability of the sources of income. tax reform, which is the main source of budget revenues, creates a number of inconveniences in medium and long-term business planning of economic entities. the adoption of the concept of tax policy improvement is starting a new era of tax system reform and formation of state budget revenues based on the experience of our country and international principles of taxation. research methodology the study employed methods such as generalization, grouping, analysis and synthesis, comparative analysis, statistical analysis, comparison, induction, and deduction. analysis of literature on the topic as we talk about the formation of state budget revenues, it is appropriate to dwell a little on the essence of the concept of the state budget. in this regard, it should be noted that most of the leading economists in the economic literature state the state budget as a large centralized monetary fund of the state, the american journal of business management, economics and banking volume 29 october 2024 p a g e | 21 www.americanjournal.org main financial plan of the country and the main financial category. in particular, prof. according to a. joraev, "the state budget is a large centralized monetary fund of the state, and it is an economic category based on the performance of state functions." exactly such an opinion is presented in the researches of a. islamkulov: "the state budget is a large centralized monetary fund of the state, and it is an economic category based on the performance of state functions." in our opinion, the opinions of the authors mentioned above and which serve to express the essence of the state budget are exactly similar to each other. they are simply repeating each other. it is clear that the difference here is defined only by the use of the term "fund" instead of the term "fund". it seems that the authors recognized these terms as being of equal strength and therefore put the sign of "equality" or "equality" between them. analysis and results local budgets are determined according to the objective necessity of strengthening the tax revenue bases, according to the rules in force in our country today. according to it, local budgets (budget of the republic of karakalpakstan, local budgets of regions and tashkent city) should have balanced incomes and expenses, and their deficit is not allowed. at the same time, the formation of tax revenues of local budgets is a multifactorial process, in which taking into account the influence of economic, tax administration, regulatory, legal and political factors plays an important role in strengthening the base of tax revenues (fig. 1). figure 1. factors affecting tax revenues of local budgets factors affecting tax revenues of local budgets economical tax administration regulatory and legal political tax policy; investment climate; level of business activity level of economic development; network structure of the economy effectiveness of tax control (state of tax arrears, number of inspections, average amount of additional tax payments, etc.) employment level of the population; inflation rate; volume of foreign economic activity and composition of goods level of professional qualification of tax authorities (availability of special education, training, etc.) stimulating the activities of tax authorities (based on kpi-efficiency and effectiveness indicators, etc.) tax legislation (tax calculation, collection, etc.) budget legislation (regulating the distribution of tax deductions by levels of the budget system, etc.) tax culture, level of social responsibility of taxpayers american journal of business management, economics and banking volume 29 october 2024 p a g e | 22 www.americanjournal.org thus, the strengthening of tax revenue bases of local budgets depends on the strict observance of the principles of formation of tax revenue bases, the distribution of certain taxes between the republican and local budgets, and factors affecting tax revenues. since the tax rate is an important element of personal income tax, it can be seen that different levels of it are used in the countries of the world (table 1). table 1 tax rates on the income of individuals in the countries of the world name of countries tax rate name of countries tax rate name of countries tax rate bahrain 0 % belarus 13 % bangladesh 25 % brunei 0 % costa rica 15 % azerbaijan 25 % qatar 0 % iraq 15 % lebanon 25 % kuwait 0 % lithuania 15 % laos 25 % uae 0 % hong kong 15 % malaysia 30 % oman 0 % mauritania 15 % thailand 35 % saudi arabia 0 % hungary 16 % vietnam 35 % albania 10 % romania 16 % pakistan 35 % bulgaria 10 % angola 17 % philippines 35 % kazakhstan 10 % ukraine 18 % indonesia 35 % kyrgyzstan 10 % sri lanka 18 % taiwan 40 % mongolia 10 % slovakia 19 % india 42.74 % uzbekistan 12 % afghanistan 20 % china 45 % tajikistan 12 % georgia 20 % south korea 45 % macau 12 % singapore 22 % israel 50 % russia 13 % syria 22 % japan 55.97 % there are countries in the world that have refused to collect income tax from their citizens. such countries include bermuda, bahamas, andorra, monaco and middle eastern countries bahrain, kuwait, qatar, uae, saudi arabia, oman. these countries fill their budgets with oil sales and income from tourism. in accordance with the stabilization and development of the country's economy, it is desirable to maintain the trend of increasing the share of direct taxes in the state budget revenues. in this case, it is necessary to ensure the increase of state budget revenues not by increasing tax rates, but by expanding the tax base and increasing the number of taxpayers. it is necessary to achieve the stability of the state budget revenues by improving the profit tax rate in order to reduce the desire of enterprises to secretive activities and coordinate the burden of profit tax with the burden on the wage fund. increasing the benefits of direct taxes, granting benefits to a certain sector will lead to an increase in the dependence of taxpayers and a violation of the competitive environment. therefore, it is desirable to reduce tax benefits as much as possible, to attract additional income to the state budget by abandoning inefficient and individual benefits. ensuring the financial independence of regions on the basis of strengthening the income base of local budgets in the management of state finances is an extremely important task of the current period. for the successful socio-economic development of regions, a financial source is needed, that is, resources american journal of business management, economics and banking volume 29 october 2024 p a g e | 23 www.americanjournal.org formed from the income of local budgets. local self-governing bodies need financial resources to solve the problems of socio-economic development of the regions, to implement the powers given to them by the legislation related to improving the quality of life of the population living in its territory. in the implementation of an effective tax policy in our republic, local authorities have acquired special importance, and their tax powers should be expanded in the implementation of tasks related to ensuring that taxes and other payments assigned to local budgets are paid to the regional budget on time and in full. analyzes show that there are currently a number of problems in the implementation of revenues allocated to local budgets, that is, taxes and fees. problems such as "under the current conditions, the insufficient level of collection due to the inefficiency of local tax and levy administration mechanisms, as well as the lack of complete accounting and objective determination of the value of real estate and land" do not allow to ensure the stability of local budget revenues. improvement of taxes and fees attached to local budgets is not only about these types of taxes, but also includes their transfer to local taxes and budgets. therefore, below we will focus on the compatibility between taxes and local budgets, on the basis of regulatory legal documents related to them. revenues coming to local budgets from taxes assigned to local budgets do not have a large share in budget revenues. in our opinion, this is related not only to the lack of full use of the possibilities of introducing, calculating and collecting these taxes, but also to the practice used in regulating the income of local budgets. formation of income of local budgets at the expense of republican taxes is expressed by the fact that it is not possible to finance their expenses at the expense of taxes and fees attached to local budgets, which are the primary source of income of local budgets. it is worth noting that in the conditions of limited powers of local government bodies on revenues directly allocated to the local budget, the implementation of deductions from taxes on the basis of norms leads to a certain limitation of their powers to strengthen the base of allocated revenues. starting from 2022, the local councils were empowered to apply coefficients increasing up to the specified amounts for the city of tashkent to the minimum rental rates in certain areas of districts and cities specialized in public recreation and tourism, and to fixed amounts of personal income tax paid by individual entrepreneurs. 2.4 billion will be allocated to the local budgets of cities and districts in the republic as a result of the application of these powers, i.e. to the minimum rent rates and to the fixed amounts of personal income tax paid by individual entrepreneurs, increasing to the amounts set for the city of tashkent. an additional income of soums was achieved. it is known that in the current period of state administration, taxes are one of the stimulating factors of economic development. the incentive function of taxes can be strengthened by expanding the powers of local authorities to fully take into account local conditions. conclusions and suggestions it is necessary to give the authority to direct the funds obtained from overestimating the forecast of local budget revenues to the dzhokorgi council of the republic of karakalpakstan, people's deputies of the regions, tashkent city councils. through this, an opportunity will be created for the dzhokorg council of the republic of karakalpakstan, people's deputies of the regions, and the tashkent city councils to implement socio-economic development programs of the regions based on the allocation of a part of the funds obtained from the increase of the income forecast to the budgets of districts and cities. american journal of business management, economics and banking volume 29 october 2024 p a g e | 24 www.americanjournal.org the limitation of their authority on taxes and fees, which form the basis of the income of local authorities, in some sense limits the interest of local authorities in strengthening their income. also, the existence of a transfer system for the formation of incomes of local budgets means that they are dependent on the higher budget. this situation does not allow the full implementation of the state policy aimed at ensuring the freedom of local authorities and strengthens the control of local authorities. references 1. даминов д.ш. ўзбекистон солиқ тизимида тўғри солиқларни ҳисоблаш механизмини такомиллаштириш //иқтисод фанлари номзоди илмий даражасини олиш учун диссертацияси. -т.: 2011 й. 155 б. 2. даминов д.ш. ўзбекистон солиқ тизимида тўғри солиқларни ҳисоблаш механизмини такомиллаштириш: и.ф.н. илмий даражасини олиш учун диссертация автореферати. – т.: бма, 2011. 23 б. 3. жўраев а. давлат бюджети даромадларини шаклантиришнинг самарали йўллари. монография. -т.: “фан” нашриёти, 2004 й. – 243 б. 4. жўраев а.с. давлат бюджети даромадларини шакллантиришнинг долзарб муаммолари: и.ф.д. илмий даражасини олиш учун ёзилган диссертация автореферати. – т.: джқа, 2005. 46 б. 5. завалишина и.а. солиқлар: назария ва амалиёт. -т.: “иқтисодиёт ва ҳуқуқ дунёси” нашриёт уйи, 2005 й. – 544 б. 6. зарипов ҳ.б. солиқларнинг корхоналар молиявий-хўжалик фаолиятига таъсирини баҳолаш йиллари. иқтисодиёт фанлари бўйича фалсафа доктори (phd) диссертацияси автореферати. – т.: тми, 2020. 61 б. 7. зудина е.м. налог на прибыль и его роль в формировании доходной базы бюджетов разных уровней. автореферат диссертации на соискание ученой степени кандидата экономических наук. – москва, 2009. – 25 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 35 www.americanjournal.org opportunities for developing digital logistics in uzbekistan babakhodzhaev giyasiddin nasyrovich associate professor of the department of business management tashkent state university of economy, tashkent, uzbekistan a b s t r a c t k e y w o r d s the logistics sector is pivotal in ensuring seamless supply chain operations, and with the global transition toward digitalization, digital logistics has emerged as a transformative force in enhancing operational efficiency and competitiveness. this paper explores the opportunities for developing digital logistics in uzbekistan, a country strategically located at the crossroads of europe and asia. the study identifies the potential benefits of integrating advanced digital tools such as blockchain, iot, and ai into logistics operations, highlighting their impact on cost reduction, transparency, and supply chain optimization. it also examines uzbekistan's current logistics infrastructure, government policies, and digital transformation initiatives, addressing challenges such as limited technological infrastructure and workforce readiness. by benchmarking against successful case studies from other regions, the study provides actionable recommendations to foster the growth of digital logistics in uzbekistan. digital logistics, uzbekistan, supply chain, blockchain, iot, artificial intelligence, logistics infrastructure, digital transformation introduction the logistics industry plays a fundamental role in economic development by ensuring the efficient movement of goods, services, and information across global supply chains. with the rapid advancement of digital technologies, logistics operations are being reshaped to meet the demands of modern commerce, including e-commerce growth, sustainability goals, and real-time data tracking (christopher, 2016). digital logistics leverages tools such as blockchain, internet of things (iot), and artificial intelligence (ai) to enhance operational efficiency, transparency, and customer satisfaction (wang et al., 2021). uzbekistan, located at the heart of central asia, is a vital hub for regional and international trade due to its proximity to major markets such as china, russia, and europe (adb, 2020). the government has launched numerous initiatives to modernize the country's logistics infrastructure and integrate digital technologies. these efforts are part of broader economic reforms aimed at fostering economic growth and attracting foreign investment. however, uzbekistan still faces challenges such as outdated infrastructure, limited digital readiness, and logistical inefficiencies that hinder its full potential in embracing digital logistics (world bank, 2021). american journal of business management, economics and banking volume 32 january 2025 p a g e | 36 www.americanjournal.org this study explores the opportunities for developing digital logistics in uzbekistan, analyzing the current state of its logistics sector, the potential benefits of digital transformation, and the challenges that need to be addressed. by benchmarking against global best practices, the paper provides insights into how uzbekistan can position itself as a leader in digital logistics in central asia. main part 1. current state of logistics in uzbekistan uzbekistan's logistics sector is characterized by a mix of opportunities and challenges. the country has a strategic geographical location, serving as a natural transit hub for goods moving between europe, asia, and the middle east. however, logistics performance in uzbekistan is constrained by factors such as outdated infrastructure, limited warehousing capacity, and insufficient multimodal transport integration (adb, 2020). the government has initiated several projects to improve logistics, including the construction of new highways, modernization of railways, and establishment of free economic zones (fezs). for instance, the navoi free economic zone has been positioned as a logistics hub to facilitate regional and international trade (ministry of investments and foreign trade, 2022). despite these efforts, uzbekistan ranked 99th in the logistics performance index (lpi) in 2020, indicating room for improvement in areas such as customs clearance, infrastructure, and logistics competence (world bank, 2021). 2. digital transformation in logistics 2.1 digital tools and technologies the integration of digital tools such as iot, blockchain, and ai has the potential to revolutionize logistics operations. iot devices enable real-time tracking of shipments, ensuring better inventory management and reduced delivery delays (wang et al., 2021). blockchain technology can enhance transparency by providing a tamper-proof record of transactions, while ai-driven algorithms can optimize routes, reduce fuel consumption, and improve delivery accuracy (christopher, 2016). 2.2 case studies from other regions countries such as china, germany, and singapore have successfully implemented digital logistics solutions. for example, singapore's tradenet system uses blockchain technology to streamline customs clearance processes, reducing clearance times from days to hours (wang et al., 2021). similarly, china's adoption of ai in logistics has improved delivery times and reduced operational costs, particularly in e-commerce-driven markets. these examples provide valuable lessons for uzbekistan in adopting digital tools to enhance its logistics performance. 3. opportunities for digital logistics in uzbekistan 3.1 strategic location uzbekistan's central position in the silk road economic belt makes it an ideal candidate for digital logistics development. by integrating digital technologies, uzbekistan can become a key transit hub for goods moving between europe and asia. american journal of business management, economics and banking volume 32 january 2025 p a g e | 37 www.americanjournal.org 3.2 government support the government has shown commitment to digital transformation through initiatives such as the digital uzbekistan 2030 strategy, which aims to modernize infrastructure and promote the adoption of digital technologies across sectors (ministry of investments and foreign trade, 2022). 3.3 growth of e-commerce the rapid growth of e-commerce in uzbekistan has created a demand for efficient logistics systems. digital logistics can address this demand by enabling real-time tracking, faster deliveries, and improved customer satisfaction (adb, 2020). 3.4 integration with regional initiatives uzbekistan's participation in regional initiatives such as the belt and road initiative (bri) provides opportunities for collaboration on digital logistics projects with neighboring countries such as china and kazakhstan (world bank, 2021). 4. challenges and barriers despite the opportunities, several challenges hinder the development of digital logistics in uzbekistan: technological infrastructure: limited access to high-speed internet and digital tools in rural areas remains a significant barrier. workforce readiness: the logistics workforce in uzbekistan requires training in using digital tools and technologies effectively. regulatory frameworks: lack of clear regulations on data sharing and cybersecurity poses risks to digital logistics adoption (christopher, 2016). cost of implementation: high costs associated with implementing advanced technologies may deter small and medium-sized enterprises (smes) from adopting digital solutions. conclusion digital logistics presents a transformative opportunity for uzbekistan to enhance its logistics sector, reduce operational inefficiencies, and strengthen its position as a regional trade hub. by leveraging its strategic location, government initiatives, and growing e-commerce sector, uzbekistan can implement digital tools such as iot, blockchain, and ai to modernize its logistics operations. however, addressing challenges such as technological infrastructure, workforce readiness, and regulatory frameworks is critical for realizing the full potential of digital logistics. by learning from global best practices and fostering public-private partnerships, uzbekistan can achieve a competitive edge in the digital logistics landscape. references 1. asian development bank (adb). (2020). central asia regional economic cooperation (carec) program: logistics sector review. 2. christopher, m. (2016). logistics and supply chain management. pearson education. 3. ministry of investments and foreign trade of uzbekistan. (2022). digital uzbekistan 2030: national strategy for digital transformation. 4. wang, j., zhang, z., & li, y. (2021). digital transformation in logistics: a global perspective. international journal of logistics research and applications, 24(5), 345-360. american journal of business management, economics and banking volume 32 january 2025 p a g e | 38 www.americanjournal.org 5. world bank. (2021). logistics performance index (lpi) report. 6. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392. 7. абдуллаев, а. к. (2023). роль транспортной дипломатии в развитии внешнеторговых маршрутов республики узбекистан. постсоветские исследования, 6(3), 315-323. 8. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 9. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 10. abdullaev, a. (2017). transport aspect of cooperation within sco. international relations: politics, economics, law, 2017(2), 11. 11. abdullaev, a. k. the peculiarities of the use of the special lexis. тошкент2021, 23. 12. палванова, у. б. (2024). значение формирования навыков оказания первой помощи у студентов в не медицинских образовательных учреждениях. periodica journal of modern philosophy, social sciences and humanities, 27, 93-98. 13. sanoqulov, a., & sharipova, u. (2022). jahon iqtisodiyotida kriptovalyutaning o’rni va istiqbollari. евразийский журнал социальных наук, философии и культуры, 2(11), 96-99. 14. umida, s. (2024). modern challenges: e-tourism in uzbekistan, features and development.(asean experience). naturalista campano, 28(1), 2846-2851. 15. sharipova, u. a. (2022). ways to develop innovative banking services in commercial banks: foreign experience. thematics journal of economics, 8(1). 16. imamov, j. f., & sharipova, u. a. (2022). teylorizm orqali zamonaviy menejmentning evolyutsiyasi: xulq-atvor fanini oʻz ichiga olgan ilmiy boshqaruvni tuzatish. евразийский журнал академических исследований, 2(3), 526-530. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 95 www.americanjournal.org features of marketing organization in light industry enterprises bazarova fayyoza tukhtamurodovna associate professor of the department of "trade" at the tashkent state university of economics a b s t r a c t k e y w o r d s this article looks at how marketing is organised in light industry firms and the peculiarities of this sector. major factors such as the effect of marketing on business effectiveness and its flexibility to meet the contemporary issues, including digitalization, sustainable development, and increasing environmental concerns are discussed. emerging marketing strategies and technologies such as artificial intelligence, big data, and e-commerce are also analyzed in this paper. a standard analysis together with a swot framework is used to reveal both the current issues and the promising marketing opportunities in the light. marketing, light industry, digitalization, sustainable development, artificial intelligence, strategic approach, data analytics. introduction light industry is a vital part of the economy, which produces things that we use in our daily lives; clothes, shoes, textiles etc. marketing is getting vital in the present world for light industry enterprises to survive and grow in the long run. in order to meet the challenges of the global economic changes and the technological developments, many companies in this industry are now using new tools such as artificial intelligence and big data to improve their understanding of customers and their operations. the cotton and textile product marketing sector in uzbekistan remains under development because of insufficient technological capabilities in addition to weak global network connections. the industry has shown major advancement. according to the uzbekistan textile and garment industry association (2023) textile product exports increased to $3.1 billion while showing a notable 17% growth from the earlier year. this investigation examines light industry marketing practices in order to identify essential development factors for commercial expansion. additionally, this discussion will analyze how technological developments and market strategy approaches handle these difficulties. literature review light industry operates through enterprises manufacturing consumer products that deliver high added value yet remain cost-effective. light industry represents the manufacturing of products that include textile goods besides apparel products as well as footwear production and furniture making together american journal of business management, economics and banking volume 33 february 2025 p a g e | 96 www.americanjournal.org with leather and paper and plastic creations. light industrial enterprises generate consumer products that concentrate on delivering solutions which fulfill end-user requirements. light industry possesses high flexibility that enables it to swiftly fulfill market adaptations based on consumer expectations and trends in the market. the sector offes quick market responsiveness through design renewals coupled with material innovation (porter, 2008). the key features which differentiate light industry from other industries consist of: 1. quick market response in light industry characterizes this sector against heavy industry's lengthy production channels which demand large capital investment. 2. the industry uses frequent technological advances in design elements together with production technologies which increase operational efficiency while providing flexible systems. 3. light industry fulfills mass consumption by adopting flexible marketing campaigns and efficient supply networks which include digital platforms together with retail channels. uzbek researchers karimov (2019) and safarov (2021) have separately argued that uzbek enterprises require innovative technologies for their marketing strategies as well as sustainable development and ecological standards for gaining competitive advantages. a pest analysis further clarifies external factors affecting marketing in light industry: political factors: government subsidies for eco-friendly production, trade barriers, and tariffs. economic factors: inflation, currency exchange fluctuations, and changes in consumer preferences during economic crises. social factors: increased interest in eco-conscious consumption, lifestyle changes, and ethical production concerns. technological factors: adoption of new technologies such as automation, artificial intelligence, 3d printing, and advanced logistics systems. porter’s five forces model provides deeper insights into the competitive environment of light industry. the model highlights five key factors influencing competition: threat of new entrants: high competition demands rapid responses to changes and innovations. threat of substitutes: the availability of substitute products, such as eco-products and innovative materials, poses a challenge to traditional goods. supplier power: suppliers, particularly in eco-oriented materials, may significantly influence product costs and availability. buyer power: consumers increasingly consider environmental sustainability and innovative features, making them more influential. industry rivalry: high competition requires differentiation through quality, pricing strategies, and marketing innovations. swot analysis proves useful in evaluating marketing activities in light industry, identifying key strengths, weaknesses, opportunities, and threats. american journal of business management, economics and banking volume 33 february 2025 p a g e | 97 www.americanjournal.org figure 1.swot analysis in light industry1 digitalization and sustainability in marketing the process of digital transformation stands as the key force that reshapes marketing operations in light-based industries. businesses currently depend on e-commerce sales while also utilizing personalized advertising and social media platforms consisting of instagram and facebook and tiktok to interact with customers (chaffey & ellis-chadwick, 2019). the incorporation of ai-driven customer insights and targeted advertisements at uzbek textile firms resulted in a 40% boost of their online sales according to uzbekistan e-commerce report (2023). sustainability is also gaining traction. eco-friendly marketing has become a common practice for firms which involves material sustainability efforts and ethical manufacturing and carbon emission reduction techniques. the sustainable approaches used by h&m through their conscious collection and patagonia through their sustainable production model established worldwide standards (solomon, 2018). the transformation of uzbekistan into organic cotton farming resulted in a 15% increase of european market orders for local farmers (ministry of agriculture, 2023).. 1 done by the author strengths: high flexibility in adapting to consumer preferences. ability to respond quickly to fashion trends. well-developed supply and distribution networks. weaknesses: high dependency on seasonal demand fluctuations. limited resources for innovative development compared to heavy industry. intense market competition. opportunities: growing interest in ecofriendly and sustainable products. expansion of online sales and internet marketing. access to international markets. threats: increasing environmental standards and requirements. currency fluctuations and economic instability. rising costs of raw materials. american journal of business management, economics and banking volume 33 february 2025 p a g e | 98 www.americanjournal.org conclusion a rapidly changing market depends heavily on marketing actions in light industry for achieving successful outcomes. technological progress in artificial intelligence combined with big data systems and digitalization enables marketing to function as a more adaptable and successful tool that satisfies customers and meets their needs. the combination of swot and pest and porter’s five forces analysis tools enables a better comprehension of light industry market factors which impact marketing initiatives. sustainability along with eco-marketing and digitalization trends require consideration since they transform how business markets products and present fresh possibilities for organizational advancement. organizations succeeding in uniting new digital marketing systems with eco-friendly manufacturing methods acquire business advantages and establish operations internationally. references 1. porter, m. e. (2008). competitive strategy: techniques for analyzing industries and competitors. free press. 2. kotler, p., & keller, k. l. (2016). marketing management (15th ed.). pearson education. 3. armstrong, g., & kotler, p. (2017). marketing: an introduction (13th ed.). pearson education. 4. chaffey, d., & ellis-chadwick, f. (2019). digital marketing: strategy, implementation, and practice (7th ed.). pearson education. 5. solomon, m. r. (2018). consumer behavior: buying, having, and being (12th ed.). pearson education. 6. kotler, p., & armstrong, g. (2018). principles of marketing (17th ed.). pearson education. 7. schindler, r. m., & kibarian, t. m. (2016). consumer behavior in action: real-life applications for marketing managers. pearson education. 8. baines, p., fill, c., & page, k. (2019). essentials of marketing (4th ed.). oxford university press. 9. hitt, m. a., ireland, r. d., & hoskisson, r. e. (2017). strategic management: concepts and cases (12th ed.). cengage learning. 10. rothaermel, f. t. (2017). strategic management (3rd ed.). mcgraw-hill education. 11. karimov, i. a. (2019). "innovative approaches in the development of uzbekistan’s light industry." 12. safarov, sh. h. (2021). "the role of marketing in the competitiveness of uzbek enterprises." american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 42 www.americanjournal.org problems in investment system development and their elimination methods khusanov fakhriddin student of tashkent state university of economics a b s t r a c t k e y w o r d s this article highlights the critical issues and priorities related to the strategic development of the financial credit system, analyzing the challenges the system may face, examining the existing literature, and exploring the potential for sustainable growth and stability, also suggestions for solutions and recommendations are presented. investment system, strategic development, problems, priorities, artificial intelligence, technologies, risk management. introduction the financial credit system plays a decisive role in the world economy, facilitating economic activity by providing individuals and enterprises with funds. however, this system faces many problems that threaten its stability and efficiency. in this article, we examine these challenges, identify key priorities for strategic development, and provide insight into potential solutions. a review of the existing literature reveals several recurring themes and challenges in the financial credit system. these include regulatory compliance, technological advances, risk management and market fluctuations. scholars argue that innovative strategies are needed to address these challenges and ensure system sustainability in the face of evolving economic landscapes. research methodology if we look at the literature in the field of finance and credit, we can look at a number of books and the lives of researchers. looking at fintech and regtech: the impact on financial services by arner barbies, this book explores the impact of fintech and regtech on financial services, and how digital technology and innovation will impact the financial system. american scientist wilson's research titled "digital finance: security and risk management" digital finance: security and risk management discusses digital finance and security issues, mentions about risk and risk management in digital financial services, and according to the analysis of literature, each necessary knowledge and information for the department can be obtained. after reading each source, it is necessary to extract the main ideas from it and build an article based on them. analysis and results this study uses a combination of qualitative analysis and literature review to assess the current state of the financial credit system and identify priorities for strategic development. data from authoritative american journal of business management, economics and banking volume 25 june 2024 p a g e | 43 www.americanjournal.org sources such as academic journals, industry reports, and regulatory publications are analyzed to gain insight into key issues and potential solutions. the strategic development of the financial credit system involves solving several key problems and setting priorities to ensure its stability, efficiency and sustainability. here are some common problems and potential priorities: • risk management: one of the main challenges in the financial credit system is the management of various risks, including credit risk, market risk, liquidity risk and operational risk. prioritizing the development of robust risk management systems, including sophisticated risk assessment models and stress tests, is essential. risk management is very important in the financial credit system. robust risk management systems help institutions effectively identify, assess and mitigate risks. a quick summary of the main risks you mentioned: credit risk: this is the risk of loss due to the borrower defaulting on the loan or defaulting on the contractual obligations. to manage credit risk, institutions use credit scoring models, fully evaluate loans and set appropriate credit limits. market risk: market risk is interest rates, exchange rates and asset prices as a result of changes in market conditions. techniques such as value-at-risk (var) models and stress tests help institutions manage market risk by quantifying potential losses. liquidity risk: liquidity risk is the risk that an institution will not be able to meet its short-term obligations. to manage liquidity risk, institutions maintain adequate liquid assets, establish contingency funding plans and monitor liquidity performance. operational risk: operational risk is the risk of loss due to faulty or failed internal processes, people and systems, or external events. risk management practices for operational risk include the implementation of robust internal controls, regular audits and business continuity plans. in addition to these risks, institutions must also consider other risks such as compliance risk, strategic risk, and reputational risk. a comprehensive risk management system must address all these risks to ensure the stability and stability of the financial credit system. • regulatory compliance: financial institutions operate in a highly regulated environment, with compliance requirements constantly evolving. ensuring compliance with regulatory standards such as basel iii or local financial regulations should be a priority to avoid penalties and maintain trust with stakeholders. • technological innovation: adopting technological advances such as artificial intelligence, blockchain and big data analytics can increase efficiency, reduce costs and improve customer experience in the financial lending system. prioritizing investments in technology infrastructure and talent development can boost innovation and competitiveness. the adoption of technological innovations such as artificial intelligence, blockchain and big data analytics can revolutionize the financial credit system in many ways: efficiency: ai-powered algorithms can automate routine tasks like credit scoring, credit approval processes, and fraud detection, significantly reducing processing times and human error. reduce costs: by streamlining operations and automating processes, financial institutions can reduce operational costs associated with manual and resource-intensive tasks. improved customer experience: the use of ai and big data analytics provides personalized services tailored to the individual needs of customers. this includes personalized loan offers, tailored financial advice and faster resolution of customer enquiries. american journal of business management, economics and banking volume 25 june 2024 p a g e | 44 www.americanjournal.org advanced risk management: big data analytics can analyze large volumes of data to identify patterns and trends, allowing for better risk assessment and management. blockchain technology can also provide secure and transparent transaction records that reduce the risk of fraud and improve trust between stakeholders. financial inclusion: technology enables financial institutions to reach underserved populations by offering innovative solutions such as mobile banking, digital wallets and microfinance services. prioritizing investment in technology infrastructure and talent development is critical to fostering innovation and competitiveness in the financial lending industry. this includes not only purchasing the latest technological tools, but also ensuring that employees have the necessary skills and training to use these tools effectively. by embracing technological advances, financial institutions can stay ahead of the curve, meet evolving customer demands, and ensure sustainable growth in the digital age. • financial inclusion: promoting financial inclusion by expanding access to credit and banking services to disadvantaged populations is critical to promoting economic development and reducing inequality. prioritizing financial empowerment initiatives such as microfinance programs or mobile banking solutions can help address this issue. • cyber security: with the increasing digitization of financial services, cyber security threats pose a major threat to the stability and integrity of the financial credit system. prioritizing investments in cybersecurity measures, including strong encryption protocols, threat detection systems, and employee training, is critical to protecting sensitive financial information and maintaining trust with customers. • sustainable finance: it is increasingly important for financial institutions to address environmental, social and governance (esg) factors in lending and investment decisions. prioritizing the integration of sustainability criteria into credit risk assessment processes and offering green financing options can contribute to a more sustainable financial credit system. • financial stability: maintaining overall financial stability is an important priority for regulators and policy makers. prioritizing measures to monitor and address systemic risks such as excessive leverage or interdependence among financial institutions can help reduce the likelihood of a financial crisis. • customer protection: protecting consumer rights and ensuring fair treatment of customers are the main principles of the financial credit system. prioritizing initiatives to strengthen transparency, disclosure and dispute resolution mechanisms will help build trust and confidence in the financial system. by addressing these challenges and prioritizing strategic initiatives, stakeholders can work to create a more stable, inclusive and sustainable financial credit system that supports economic growth and stability. the results highlight the need for strategic initiatives to address these challenges and take advantage of emerging opportunities. collaborative efforts between financial institutions, regulators and technology providers are critical to driving innovation, improving regulatory compliance and strengthening risk management systems. in addition, investments in talent development and strategic partnerships can increase the stability and competitiveness of the financial credit system. conclusion in short, the strategic development of the financial credit system requires a multifaceted approach that combines regulatory compliance, technological innovation, and sound risk management practices. by american journal of business management, economics and banking volume 25 june 2024 p a g e | 45 www.americanjournal.org prioritizing these areas and fostering collaboration among stakeholders, the system can adapt to evolving market dynamics and sustain long-term growth. policymakers, industry leaders and regulators must work together to create an environment conducive to innovation and stability in the financial credit system. future research should examine the impact of emerging technologies such as blockchain and artificial intelligence on the financial credit system. in addition, research on regulatory frameworks and their effectiveness in protecting financial stability and consumer rights is warranted. in addition, longitudinal studies that track the implementation and outcomes of strategic initiatives provide valuable insights into the evolution of the system over time. references 1. avagyan g.l. saitova m. yu. (2012). regional bank cluster, m: master: nfra-m, 224 p. 2. daryakin a.a. (2008). investigation of international financial reporting standards and international accounting standards implementation by russian credit organizations on the base or multifactor analysis model, audit and financial analysis, 5, pp. 69-86. 3. kaplan r.s., norton d.p. (2003). balanced scorecard: translating strategy into action, m.: olimpbusiness, 210 p. 4. klaas j.a. (2012). imitating model of formation of strategy of a sustainable development of the credit organization, audit and financial analysis, 2. 5. mysaev o.g. application of balanced scorecard in development of retail business in russian [eresource]. group of company “intalev”. official site: http://www.intalev.ru. 6. niven, paul r. (2004). balanced scorecard. step-by step. maximizing performance and maintaining results, dnepropetrovsk: balance business book, 328 p. 7. pavlov r.o. assignment of balanced scorecard [e-resource]. integrated management system qpr. official site: http://www.qpronline.ru. 8. vagizova v.i., klaas j.a., batorshina a.f. (2013). financial stability assessment of regional banking sector under modern conditions by means of operating procedures of its determination, investment management and financial innovations, 3, pp. 89-97. 9. vagizova v.i. (2009). clustering as innovative form of diversification of economic systems and factor of increase of competitiveness of economy of tatarstan, problems of modern economy, 4, pp. 336-339. 10. gogol d.a. (2011). conditions for the local financial sustainability of commercial bank, financial analytics: problems and solutions, 14, pp. 58-64 11. g’afurov o., tojiboyev m. global yevroobligatsiyalar bozorida o ‘zbekiston ishtirokini kengaytirish imkoniyatlari //евразийский журнал права, финансов и прикладных наук. – 2022. – т. 2. – №. 13. – с. 114-119. 12. asqar o‘g‘li m. h. et al. o ‘zbekiston moliya siyosatining hozirgi kundagi natijalari //" moliya-iqtisod". – 2024. – т. 4. – №. 1. – с. 17-24. 13. хошимов, ж. р., б. б. очилов, and с. с. наримонов. "инвестиционная политика: теория и практика." (2024). 14. шомуродов р. т. и др. роль монетарной политики в обеспечении экономического роста //" moliya-iqtisod". – 2024. – т. 4. – №. 1. – с. 1-11. http://www.intalev.ru/ http://www.qpronline.ru/ american journal of business management, economics and banking volume 25 june 2024 p a g e | 46 www.americanjournal.org 15. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). 16. tulaganova r., ochilov b. the necessity of attracting foreign investments for the economic well-being of the country //solution of social problems in management and economy. – 2024. – т. 3. – №. 6. – с. 5-8. 17. o’g’li, olimjon g’olib, and joziba sobirjon qizi abdullayeva. "yevroobligatsiyalarni muomalaga chiqarish va amaliyotini samarali tashkil etish." central asian research journal for interdisciplinary studies (carjis) 2.11 (2022): 78-87. 18. tursunkulovich, s. r. (2023). theoretical and practical issues regulation of money aggregates. journal of advanced scientific research (issn: 0976-9595), 3(5). american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 11 www.americanjournal.org financial security and financial risks of the enterprise narimonov sayfullakhon sunnatilla ugli scientific supervisor, tsue, phd, senior lecturer of the department of international finance. abdullaeva saida maxsutxan kizi tsue, master’s degree student of the department of international finance, major – public finance and international finance a b s t r a c t k e y w o r d s the article is devoted to the problems and essence of financial security, which is considered as one of the most important conditions for ensuring sustainable growth of an enterprise. the relevance of the issue of ensuring the financial security of an enterprise and identifying financial risks is indicated. it is noted that the most important indicator characterizing the measure of financial risk and financial security of an enterprise is its level. financial security of the enterprise, financial risks, profitability-risk, risk level, management, financial stability introduction in turn, the level of financial risk is the main indicator of assessing the level of financial security of an enterprise, characterizing the degree of protection of its financial activities from threats of external and internal nature. it is concluded that it is necessary to analyze the company’s financial security system and use methods to reduce financial risks that will improve the financial condition of the enterprise and reduce the likelihood of situations unfavorable for the enterprise. the presence at the enterprise of an effective financial security system and control of financial risks is one of the key conditions that ensure high final results of the company’s activities and its sustainable growth. thanks to this system, a set of measures is implemented and developed to protect its financial interests from external and internal threats. as practice has shown, over the past ten years, it was the absence of an effective system of financial security and control of financial risks at the enterprise that became the causes of bankruptcy and financial crisis. moreover, both external and internal threats to the financial interests of the company exist at different stages of the enterprise’s development and require attention and consideration from the company’s management. american journal of business management, economics and banking volume 34 march 2025 p a g e | 12 www.americanjournal.org literature review success in the business world depends decisively on the correctness and validity of the chosen strategy for economic and entrepreneurial activity. in this case, the probabilities of critical situations should be taken into account [6]. the market system of economic relations assumes that enterprises and organizations are independent economic entities that must choose the optimal solutions themselves, foresee their consequences and independently take care of creating reserves or attracting other financial sources to organize measures to eliminate possible losses [3]. the effective operation of financial institutions in modern market conditions is impossible without systematic risk management. financial risk management is a universal field of knowledge in which specialists from different fields work economists, including financiers, as well as mathematicians, managers, sociologists and political scientists [4]. it ensures the achievement of strategic and tactical goals in conditions of permanent stochastic influence of diverse financial risk factors. the relevance of the study lies in the fact that the company’s ability to quickly and effectively influence financial risks and security will ensure economic growth of the enterprise, stability of operations and competitiveness. the efficiency of business entities in a market economy is largely determined by the state of their finances, which leads to the need to consider problems of ensuring the financial stability and security of the enterprise. research methodology using a system of indicators for analyzing the financial activities of a company, we can obtain a quantitative assessment taking into account risk factors for the enterprise when solving specific problems related to financial security and financial risk management. one of these indicators is the risk level, which characterizes the measure of financial risk and financial security of the company. the level of risk influences the formation of the level of profitability of the financial activities of the enterprise. these indicators are interrelated and form a single “return-risk” system. the relationship between the level of profitability and risk is one of the main basic concepts of financial risk management, according to which the level of profitability of financial transactions, other things being equal, is always accompanied by an increase in the level of their risk and vice versa [5]. the level of financial risk serves as a fundamental indicator for assessing the level of financial security of a company, which shows the degree of protection of its financial activities from external and internal threats. thus, having assessed the level of risk in managing the financial activities of the company, a management policy for the enterprise is assumed and developed. analysis and results the need for an integrated approach to the formation of the financial security of an enterprise, ensuring the protection of its financial interests in the development process, determines its separation as an independent management object in the general financial management system. in this regard, there is a need to deeply consider the essence of the concept of “financial security of an enterprise” and identify its most characteristic features as an object of management. the main essential characteristics of enterprise security as an object of management are presented in figure 1. american journal of business management, economics and banking volume 34 march 2025 p a g e | 13 www.americanjournal.org figure 1. factors characterizing financial security of an enterprise to monitor and effectively manage the financial security of an enterprise, information on management objects is analyzed (figure 2). based on the principles of a systematic approach, in order to effectively manage the financial security and financial activities of an enterprise, it is first necessary to collect information on management objects, then calculate indicators for assessing financial performance by management objects and carry out a comparison procedure with the external and internal environment of the enterprise, based on the data obtained, carry out forecasting financial performance and identifying problems in financial management [2]. thus, in order to improve financial security and avoid risks, companies need to accurately forecast various indicators, such as loan amounts that may not be repaid, in order to create the necessary reserves for writing off bad debts. and also reduce current assets, the share of which is reflected in inventories and, if possible, increase equity capital, expanding the scope of its activities and attracting more participants. using special forms of company risk reports, financial risks corresponding to a specific object are identified. american journal of business management, economics and banking volume 34 march 2025 p a g e | 14 www.americanjournal.org figure 2. algorithm for monitoring and managing the financial security of an enterprise based on the analysis carried out on the company's management objects, a report is drawn up for a certain period of time on identified financial risks and the prevention of bankruptcy in the enterprise. such information is closed to external users. as a result of assessing the external and internal environment and identifying the company's problems, a report on financial risks is compiled, which contains a list of factors influencing each financial indicator. thus, drawing up a report allows you to: present the whole picture of financial management, the relationship of all elements and interaction with external and internal factors; take into account the influence of the external and internal environment, subject to control over compliance with financial discipline, in accordance with mandatory state requirements; increase the company’s resistance to changes in the external environment based on monitoring and analysis of competitors, comparing indicators with the obtained report data; taking into account additional factors that helped identify financial risks in the enterprise, and establish that these factors influence the financial activities of the enterprise, especially in times of crisis. according to the company's financial risk report, a final assessment is made for each specific indicator, based on the prediction of one or another type of financial risk. next, a program is being developed to reduce financial risks and increase financial security at the enterprise. then an assessment is made of the effectiveness of measures aimed at maximizing the reduction of financial risks and threats. collection of information on objects of management of financial security and financial activities at the enterprise calculation of indicators for assessing financial security and financial activity for management objects implementation of developed measures to improve financial security development of measures to strengthen financial security and reduce financial risks forecasting financial performance and financial security indicators assessing the effectiveness of the developed measures and their impact on improving financial security determination of the role in managing financial security at enterprises comparison procedure with indicators for assessing financial risks associated with external and internal environmental factors american journal of business management, economics and banking volume 34 march 2025 p a g e | 15 www.americanjournal.org based on the study, the following conclusions can be drawn. one of the most important goals of the functioning of a commercial organization, especially during a crisis, is to obtain as much profit as possible, the achievement of which is limited by a number of external and internal, expected and unpredictable factors (circumstances). as a result, the management of each enterprise is interested in reducing the degree of uncertainty and risk in business activities and ensuring the concentration of resources in selected priority areas [1]. the main task of analyzing the management of financial security and monitoring the financial risks of a company is to identify the conditions for making a profit with an optimal ratio of costs and the degree of risk acceptable for the enterprise. maintaining a stable financial position of the company is based on an effectively built financial security management system, which is based on an analysis of the financial activities of the enterprise. because it is through analysis that it is possible to identify primary financial risks, for example, when employees of an enterprise contact a bank to obtain a loan. it follows from this that the analysis evaluates the most important indicators, according to which a list of external and internal factors of the financial environment is compiled, the level of risk and their impact on the final financial result are assessed and taken into account. conclusion this analysis underscores the crucial relationship between financial risk and profitability, highlighting the necessity of an integrated approach to financial security management. by systematically assessing monetary risks and implementing strategic mitigation measures, enterprises can enhance stability and resilience in an unpredictable economic environment. effective economical security management relies on continuous monitoring, predictive analytics, and structured risk reporting to optimize decision-making. strengthening financial discipline, aligning with regulatory requirements, and analyzing industry trends enable firms to proactively address potential threats. ultimately, a welldeveloped financial security framework is essential for sustaining long-term profitability and competitiveness. future research should explore advanced risk assessment models, incorporating emerging technologies to further refine predictive accuracy and enhance financial decision-making. references 1. vyachina, i. n. on the issue of forecasting in the management of a modern organization / i. n. vyachina, o. a. mayorova // entrepreneur’s guide. – 2013. – no. 18. – p. 65–73. – issn: 2073-9885. 2. kovrizhnykh, o.e., mingaleeva, o.v. systematic approach to managing the financial activities of enterprises / o.e. kovrizhnykh, o.v. mingaleeva // scientific notes of the russian academy of entrepreneurship. scientific and practical publication. vol. xli / under the general editorship. v.s. balabanova. – m.: russian academy of entrepreneurship; press agency “science and education”, 2014. – p. 213-219. 3. larionova, i. a. financial risk management: textbook / i. a. larionova. moscow: publishing house. house of misis, 2010. 91 pp. isbn 978-5-87623-386-8. 4. financial and banking risks: textbook / l. i. yuzvovich, yu. e. slepukhina, yu. a. dolgikh [etc.]; edited by l. i. yuzvovich, yu. e. slepukhina. 2nd ed., erased. moscow: flint; ekaterinburg: ural publishing house. univ., 2022. 336 p. isbn 978-5-9765-5066-7 (flint); isbn 978-5-7996-33578 (ural university publishing house). american journal of business management, economics and banking volume 34 march 2025 p a g e | 16 www.americanjournal.org 5. khachaturyan, n.m. analysis of financial and economic activities: lecture notes. – ed. 3rd. – rostov n/d: phoenix, 2013. – 186 p. 6. shapkin, a. s. economic and financial risks. valuation, management, investment portfolio: a practical guide / a. s. shapkin, v. a. shapkin. – 10th ed., erased. – moscow: publishing and trading corporation “dashkov and co.”, 2020. 544 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 141 www.americanjournal.org do you prefer stocks for your pension portfolio? rustam oltinov professor black econ 43078, 04/09/2025 a b s t r a c t k e y w o r d s in this paper, we will try to investigate the pension preferences, how demographic and financial factors affect pension allocation using binomial logit model. the dataset includes variables such as age, education, income, wealth, and stock investments, marital status, race, years in pension. the key questions explored are how factors like age, pension in years, education, wealth, profit sharing plan and investment choice influence pension decisions, mainly trying to capture the effects on the inclusion of stock investments in the pension portfolio. since stocks are considered risky assets, this paper tries to represent the inclusion of stocks into the portfolio as the determinant of the risk aversion during the pension plan. stock, pension plan, variable, multicollinearity, heteroscedasticity, investment, risk aversion, portfolio. introduction the impact of age, income, and other demographic factors on pension investment decisions made by samples of participants with choice has been the subject of several recent research [1]. numerous econometric studies link pension asset selection to demographic traits [1]. according to these studies, pension assets generally show that the standard investment advice states that the equity share of a portfolio should decrease with age (more precisely, that the equity percent should equal 100 minus one's age) and increase with income (indicating a greater ability to bear risk) [1]. however, it is assumed that participants optimize across all of their assets, including retirement assets [1]. over the past few decades, the world's population has been aging at an accelerated rate. as a result, a growing percentage of people are either past or close to retirement age. growing research in recent years has demonstrated that people's risk aversion tends to increase with age [4][3]. according to dohmen, who used a representative sample of germans from the german socio-economic panel in 2004, demographic characteristics like age and gender help to explain part of the variation in risk aversion levels among people [2]. they discovered that older persons are more risk apprehensive than younger people, and women are generally more risk averse than men. they also concluded that a person's degree of risk aversion in financial concerns is influenced by their height and the educational attainment of their parents[4]. in particular, taller people are generally less risk averse. people with highly educated parents are generally less risk averse than people with less educated parents. american journal of business management, economics and banking volume 35 april 2025 p a g e | 142 www.americanjournal.org economic theory of model and variable relationships theoretical framework is based on the people’s preference for the inclusion of stocks in pension asset allocation. stock ownership is dependent dummy variable and theoretical proxy for the measurement of risk aversion (the higher, the lower risk aversion). investment choice (choice = 1 if participant can choose investments). papke suggest that people who have options are more likely to match their asset allocation to their own return expectations and risk tolerance. plan administrators might make more conservative investments if they have no other option, especially when it comes to interest-bearing assets [1]. consequently, it is anticipated that choice has a positive correlation with stock investing [1]. also, including the age factor in the model as the independent variable is hypothesized being negatively correlated with stock investments. as an age increases people tend to lean on more safe umbrellas like bonds. next, education is anticipated to contribute to the ownership of stocks in pension portfolio. it is quite clear that people with higher financial literacy and education tend towards the stock ownership because of understanding of markets, asset characteristics and so on. furthermore, wealth factor is crucial in this model. because they can more easily withstand possible losses, people who are richer prefer to devote a bigger percentage of their portfolio to riskier assets like equities, according to the notion of decreasing absolute risk aversion (dara)[5]. duration of the pension plan is also important factor that effects the stock ownership. the hypothesis is that as the number of years increase in the pension plan, it should affect negatively to the stock allocation because the longer the duration is, the more uncertain the future will be, thus it increases the risks. finally, profit sharing variable will be included in the model, the rationale behind this decision is that people think that profit sharing plan usually incentivize pension plan managers to provide better returns, which might lead to the more of weighting on the stocks during the asset allocation process. data discussion data includes 194 observations which were recorded in 1980s. most of the variables are dummy variables which includes min 0 or max of 1, and they are profit sharing and choice, stock ownership (dependent dummy) variables. however, pension in years has a min value of 0 and max 45 with mean of 11.30 and standard deviation of 9.51. also, kurtosis of 3.767 means distributions is almost normally distributed with positive skewness of 1.13. education variables is about the highest grade completed having min value of 8 with highest of 18. it has a mean value of 13.57 which means people on average have completed sophomore level in the college. it has kurtosis of 2.29 which platykurtic distribution with skewness being almost symmetrical with the value of 0.3112. finally, wealth variable measuring the net worth of 194 participants in the dataset. the person that had highest net worth valued at 1484.99 and with lowest valued at -579.997. average person was worth of 207.37 with standard deviation 251.23. kurtosis of 9.76 means leptokurtic distribution with extreme deviations and skewness of 2.11. model results the dependent variable is dummy variable, meaning percentage of stock ownership in percentages, thus we faced unboundedness problem and used binomial logit model to mitigate it. variables signs are similar to what has been expected. american journal of business management, economics and banking volume 35 april 2025 p a g e | 143 www.americanjournal.org coefficient estimates cannot be trusted, we calculated average marginal effects. test for multicollinearity since this model is non-linear, vif uncentered model used to detect multicollinearity between variables. we detected significant multicollinearity since both are greater than 10 between age and education explanatory variables. the course of action taken was to drop education variable. american journal of business management, economics and banking volume 35 april 2025 p a g e | 144 www.americanjournal.org before after test for heteroskedasticity the breusch-pagan test was used to determine heteroskedasticity. calculated test-statistic was 33.58 which is higher than critical value of chi-squared (11.0705) table on 5 percent significance level with two tailed. thus, we reject the null hypothesis that no heteroskedasticity. to adjust the heteroskedasticity problem, we used heteroskedasticity-corrected (hc) standard errors. even though hc standard errors are biased upward due to the intentional adjustment, they should be more accurate, improving the accuracy of hypothesis testing and statistical inference. american journal of business management, economics and banking volume 35 april 2025 p a g e | 145 www.americanjournal.org interpretation of results coefficient signs and results were as expected. wealth factor being quite significant, we can expect it to have huge impact on the stock ownership in the pension portfolio. however, all other variables also were expected to be significant, they were not. multicollinearity and heteroskedasticity problems were detected but dropping the extra independent variable variable and using the heteroskedasticitycorrected (hc) standard errors approaches, the model was effectively adjusted for both problems. summary in order to capture the effects on the inclusion of stock investments in the pension portfolio, the main questions examined were how age, asset allocation choice, and profit sharing plan, age, years in pension and wealth affect pension decisions. this study attempted to depict the inclusion of stocks in the portfolio as the determinant of risk aversion during the pension plan because equities are regarded as hazardous assets. as a result, wealthier individuals tended to invest a larger percentage of their pension account in equities which showed lower risk aversion. references 1-papke, leslie e. "individual financial decisions in retirement plans: the role of participantdirection." journal of public economics, vol. 88, no. 1–2, 2003, pp. 39–61. 2-dohmen, thomas, et al. "risk attitudes across the life course." journal of the european economic association, vol. 15, no. 4, 2017, pp. 745–784. 3-schurer, stefanie. "lifecycle patterns in the socioeconomic gradient of risk preferences." journal of economic behavior & organization, vol. 119, 2015, pp. 482–495. 4-dohmen, thomas, et al. "individual risk attitudes: measurement, determinants, and behavioral consequences." journal of the european economic association, vol. 9, no. 3, 2011, pp. 522–550 5-arrow, k. j. (1971). essays in the theory of risk-bearing. north-holland publishing company. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 34 www.americanjournal.org on the way to an effective mechanism of tax administration in the conditions of digitalization abdusherozov abdullo baxtiyorovich teacher of the department of taxes and taxation, tashkent state university of economics, uzbekistan, tashkent e-mail abdusherozov_13@mail.ru a b s t r a c t k e y w o r d s in the article, at the current stage of the liberalization of the economy and the modernization of the tax system in the republic of uzbekistan, the advantages and unique features of the creative approach to effective measures to regulate and stimulate economic development through taxes are scientifically justified. tax system, taxes, taxation, tax administration, tax regulation, taxpayer. introduction according to world practice, the improvement of tax levers plays an important role in the effective mechanism of ensuring the stability of economic growth. an in-depth analysis of the laws of the current development of the world economy and its tax factors, reducing the tax burden in the developed countries of the world, unifying the types of taxes and lowering the tax rate, using modern information technologies in the development of an electronic system for paying taxes and submitting tax reports, convenient investment for conducting business confirms that special attention is being paid to the creation of climate and business environment. in international practice, extensive scientific research is being conducted on the directions of effective development of the regulatory function of taxation. in scientific research, special attention is paid to such factors as the rapid changes in the world market, the international tax practice and its business environment, the preliminary evaluation of the factors affecting the medium and long-term strategy for ensuring the effective development of the regulatory function of taxation based on the rise of competition from the national level to the global level. at the international level, scientific research is systematically conducted on the directions of the effective development of the regulatory function of taxation, and scientists from the usa, western europe, japan, singapore, and south korea emphasize their methodological and practical importance, and more theoretical aspects in the cis countries. "currently, one of the most prominent issues of tax policy at the global level and one of the directions of the effective development of the regulatory function of taxation is the wide use of the advanced achievements of the digital economy and the creation of an automated system of the process of taxation american journal of business management, economics and banking volume 35 april 2025 p a g e | 35 www.americanjournal.org of economic entities" [1]. in international experience, result-based tax reforms demonstrate the coherence of science, technology and innovation policy. in uzbekistan, a strong economic base based on an efficient tax system in accordance with world standards and determination of promising development directions based on real results, continuing the policy of reducing the tax burden and simplifying the taxation system, improving tax administration and expanding relevant incentive measures are given serious importance. reducing the tax burden, eliminating its disproportionate distribution among taxpayers, eliminating problems in calculating and paying taxes due to imperfections in tax administration, preventing hierarchical relations between taxpayers and tax authorities and achieving their "cooperative growth", business entities the task of eliminating unjustified tax audits that hinder its activity and providing tax advice and transitioning to effective control measures was established. in our republic,"within the new tax policy, the tax burden on wages has been reduced by 1.5 times. as a result, the number of people working in the official sector increased by 500 thousand during the year. the value added tax rate has been reduced from 20 percent to 15 percent. due to this, 2 trillion soums were left at the disposal of taxpayers last year. this year, this number is expected to be 11 trillion soums. having so much money at the disposal of entrepreneurs in one year, of course, gives them a lot of additional opportunities to develop their business"[2]. this, in turn, shows that the topic of this scientific article is one of the urgent issues of today's reforms. based on the use of effective tools and methods of tax administration in uzbekistan, "to continue the policy of reducing the tax burden and simplifying the taxation system, improving tax administration and expanding relevant incentive measures" [3], "simplification of tax legislation, contradictions in normative legal documents in the field of tax relations" and resolving conflicts, strengthening the protection of the rights and legitimate interests of honest taxpayers”[4], it was emphasized that "at the end of the implementation of the tasks of the tax administration improvement strategy, the level of voluntary fulfillment of tax obligations should be brought up to 90%"[5]. these determined the tasks of strategic planning and forecasting of effective tax policy by the state. these tasks indicate the need to ensure the stability of budget revenues, to improve the methodological foundations of effective tax administration. these tasks were set in the "development strategy of new uzbekistan for 20222026" in a more strict and comprehensive manner: "...to continue the policy of reducing the tax burden and simplifying the taxation system, improving tax administration and expanding relevant incentive measures[6] » is defined as an important direction. main discussions sh.toshmatov's doctoral dissertation on the topic "problems of strengthening the role of taxes in increasing the economic activity of enterprises" (2008) is devoted to the analysis of the nature and necessity of taxes paid by enterprises, ways of stimulating the economic activity of enterprises through taxes. in this study, for the first time in our country, the priority directions of strengthening the role of taxes in increasing the economic activity of enterprises were investigated. n.ashurova's doctoral dissertation on the topic "improving the mechanism of taxation in ensuring sustainable economic growth" (2018) is devoted to the study of issues of improving the mechanism of taxation in ensuring sustainable economic growth. american journal of business management, economics and banking volume 35 april 2025 p a g e | 36 www.americanjournal.org i. niyazmetov's doctoral dissertation on the topic "ensuring the stability of the tax system by improving the mechanisms of taxation" (2019) is devoted to the study of ways to improve the mechanisms of taxation in the country's tax practice. kh.zaripov's dissertation for the degree of doctor of philosophy (2020) on the topic "ways of assessing the impact of taxes on the financial and economic activity of enterprises" (2020) is dedicated to the research of ways of assessing the impact of taxes on the financial and economic activity of enterprises at the current stage of the modernization of the tax system in our country . however, at the time when these scientific works were carried out, within the framework of the policy of the new tax concept in the context of modernization and liberalization of the economy, taking into account the future tasks of the socio-economic development of the country, a systematic research of the impact of taxes on the financial and economic activities of enterprises and its focus, "electronic accounting based on the digital economy establishing a book system", "opening a wide path to entrepreneurial activities based on free competition", socio-economic the issue of creating an improved mechanism by coordinating and harmonizing the ratio of "state fiscal goals and the mechanism of effective implementation of tax levers", which is an important basis of development financial support, was not put on the agenda and did not become as acutely important as it is now. it is for this reason that the need for a new approach to the improvement of the scientific and methodological bases of researching directions of regulation and stimulation of economic development through taxes in the republic of uzbekistan is clearly visible. there are many theories in favor of managing the economy through taxes. in particular, the principles of taxation put forward by a. smith confirm the need to study the fiscal importance of taxes as a tool used in managing the economy. the concept of "taxes as a regulatory tool of the economy" refers to the use of taxes in managing the economy and ensuring the stabilization of economic growth. in his scientific research, keynes theoretically justified the need to manage the economy through taxes and considered taxes as an automatic stabilization tool. at the same time, he recommended changing the tax mechanism and aligning the tax policy with the cyclical development of the economy. e. gerarden (french economist), the founder of the theory of "taxes a means of stabilizing income", emphasizes that it is possible to end the property inequality of society members by influencing the mechanism of economic management with the help of taxes, including by applying a progressive scale of taxation. the main goal of managing the economy through taxes is to create favorable conditions for business operations and increase the production efficiency of economic entities, and the following methods are used to achieve these goals: change the amount of tax revenues; change the forms and methods of taxation; change of tax rates, their classification; use of tax benefits; change of objects subject to taxation; application of fines and others. the state influences the macroeconomic and microeconomic level in regulating the economy through taxes. american journal of business management, economics and banking volume 35 april 2025 p a g e | 37 www.americanjournal.org at the macroeconomic level, by changing the amount of the tax rate, it is possible to achieve a wide range of goals, such as limiting inflation, effective use of natural resources, regulating the perfect interregional location of production forces, providing employment to the working-age population, and achieving economic growth. at the microeconomic level, it can affect the financial status of economic entities and stimulate their investment activities. in managing the economy through taxes, the elements of the tax mechanism are widely used. among them, as widely used and effective measures, it is necessary to mention separately changes of tax rates and tax benefits. tax incentives are widely used in managing the production process, encouraging investments, etc. depending on the incentive and effective application, tax incentives can be expressed in the following forms: complete exemption from taxes; giving incentives to newly established enterprises; temporary tax exemption; reduction of the taxable base; partial tax exemption; giving incentives to foreign investments; granting export incentives and others. the basis for ensuring the flexibility, high efficiency, and systematic adaptation of taxation is its modernization, introduction of modern, objectively based organizational, economic and financial forms, methods, and mechanisms of implementation. the innovative base allows to maximize the existing potential, expand the functionality of tax models. for this, it is acceptable to use advanced information technologies, economic and mathematical methods, construction of logical schemes, algorithms of system operation. changing the tax regulation on the basis of the optimally selected, analyzed and synthesized financial and economic indicators with the development of several alternative options for planning the current activity allows to improve the activity on the formation of state revenues. conclusion 1. summarizing the experiences of the world tax practice, it was determined that the objective trend of transformation of the fiscal type of taxation into the regulatory type is being observed, and in this regard, it is appropriate to switch to the regulatory type of taxation in the prospects of the development of the new economy of uzbekistan. 2. it was found necessary to change the current approaches to the modernization of the tax system in the republic of uzbekistan. the function of tax regulation cannot be imagined without the functioning of the system of tax credits. in this regard, revision of the approaches "regarding the necessity of canceling ineffective benefits in the system of using tax benefits, their absolute abandonment" and "ensuring the effective operation of the tax benefits system" the expediency of returning to the practice, first of all, it is necessary to apply a system of tax benefits for enterprises, which are directed to scientific and technical developments, purchase of new technologies, scientific and research work, work on improving the level of personnel qualifications, and work on ensuring environmental safety of production. american journal of business management, economics and banking volume 35 april 2025 p a g e | 38 www.americanjournal.org 3. improvement of the tax administration system will take place as part of the tax regulatory function [7]. in this direction, the following are offered: • establishment of uniform standards for technological processes of work of tax bodies; • to strengthen the mechanism of mandatory collection of tax payments due to the wide and rapid introduction of complex information systems in order to improve the monitoring of taxable transactions; • expansion of tax audit opportunities for conducting tax audits. references 1. paying taxes 2022. a unique report by pwc and the world bank group. http://www.pwc.com/gx/en/paying-taxes/pdf/pwc-paying-taxes-2023.pdf 2. mirziyoev sh. address of the president of the republic of uzbekistan shavkat mirziyoyev to the oliy majlis. tashkent city, january 24, 2020, https://uza.uz/oz/politics/zbekiston-respublikasiprezidenti-shavkat-mirziyeevning-oliy-25-01-2020 3. action strategy for the five priority areas of development of the republic of uzbekistan in 20172021. appendix 1 to decree no. pf-4947 of the president of the republic of uzbekistan dated february 7, 2017. people's word newspaper february 8, 2017. 4. decree no. pf-5837 of the president of the republic of uzbekistan "on measures to further improve the tax policy of the republic of uzbekistan", september 26, 2019. 5. annex 1 to the decision of the president of the republic of uzbekistan no. pq-4389 dated july 10, 2019, chapter 3, clause 3.3 of "tax administration improvement strategy". 6. decree of the president of the republic of uzbekistan dated january 28, 2022 no. pf-60 "on approval of the development strategy of new uzbekistan for 2022-2026". 7. djamalov kh.n., abdullayev a.b, (2021). development of the methodology of accounting expertise of tax obligations. the american journal of management and economics innovations, 3(05), 151-163. 8. ilyasova barno axmadovna. characteristics of enhancing the incentive role of taxes in ensuring the investment activity of enterprises. journal of green economy and development, december 2023, issues 11-12. 9. ilyasova b. a. expanding the significance of tax incentives in facilitating the promotion of investment activities by companies and their progressive directions. international journal of business diplomacy and economy. issn: 2833-7468. volume 2 | no 11 | nov -2023. http://www.pwc.com/gx/en/paying-taxes/pdf/pwc-paying-taxes-2023.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 38 www.americanjournal.org the role of electronic commerce sites and marketplaces in the development of small business in uzbekistan rizayeva nilufar oblakulovna, tashkent state university of economics, social sciences senior teacher of the department, tashkent rizayevanilufar15@gmail.com, +998999000565 a b s t r a c t k e y w o r d s in recent years, e-commerce and marketplaces have created new opportunities for small businesses. small businesses are an important component of the economy, and their development greatly affects the economic stability and social well-being of countries. this article analyzes the role of e-commerce sites and marketplaces in the development of small businesses in uzbekistan. small businesses, ecommerce sites, marketplaces, economic growth, modern technologies, society, innovation. introduction small businesses play an important role in the economy. they employ many people and support local communities. small businesses also actively participate in the implementation of new ideas and innovations. they often innovate the market by developing new products and services. these processes contribute to economic growth and increase competition. small businesses also have a social responsibility. they play an important role in ensuring social stability by strengthening ties with local communities, supporting the local economy, and participating in social projects. today, the use of ecommerce plays a very effective role in small business. electronic commerce (e-commerce, visual. "e-commerce') is the organization of trade practices through the internet. internet auction and e-bay online store are examples of electronic commerce. methodology electronic commerce is the organization of trade practices through internet technologies. e-commerce is powered by the internet. customers access the online store to purchase products through their devices. they allow buyers to compare goods and services from different sellers. as a result of the rise of our country to a new economic stage, large-scale works were carried out in all areas. the first law on "electronic commerce" in uzbekistan was adopted in 2004. as a result of the development of information technologies, electronic commerce systems have risen to a new level. in the decree no. 37 of the president of the republic of uzbekistan sh.m. mirziyoyev dated may 14, 2018 "on measures for the further development of electronic commerce", a number of plans were defined as the goal of american journal of business management, economics and banking volume 30 november 2024 p a g e | 39 www.americanjournal.org the development of electronic commerce. development of new ideas and products, introduction of technologies and monitoring of market trends help to increase the competitiveness of small businesses. an innovative approach allows small businesses to adapt to changing market conditions. research outcome in uzbekistan, the field of e-commerce is rapidly developing, products and services are provided to consumers through many platforms and sites. below are the most popular e-commerce sites in uzbekistan: 1. marketplace (online markets): olx.uz is the most popular platform for local ads. it offers the opportunity to buy and sell everything from developments to real estate and vehicles, with its advantages: an easy-to-use interface, various categories and the possibility of posting ads for free. zoodmall is a shopping area in uzbekistan that offers international and local products. its advantages: various forms of payment and wide choice. zoodmall is an international online shopping platform that operates in many countries, including uzbekistan. through the zoodmall mobile application, users can shop for a variety of products, including clothing, accessories, electronics, home appliances, and more at low prices. app features include new arrivals and great discounts. zoodmall also offers the option to pay in installments with no upfront fees. book.uz is a specialized site for selling books. its advantages: a wide range of electronic and printed publications. 2. trading sites connected to electronic payment platforms: apelsin store. an online store connected to the apelsin mobile application. 3. specialized trade sites: technomart.uz is a platform specializing in the sale of household appliances and electronics. goodzone.uz is the sale of electronics and household appliances. anor.uz is a platform for buying international products. 4. trade and logistics integrated sites: uzum market is one of the largest e-commerce platforms in uzbekistan, offering a convenient marketplace service for buying local and international goods. in 2023, the app was downloaded more than 13.5 million times and became one of the leading online shopping platforms in the country. uzum market has established distribution points for users in 72 settlements, and it is planned to increase this number in the future. the fulfillment by seller (fbs) model is introduced on the platform, and sellers have the opportunity to independently manage and store their products, and the marketplace provides online storefront and logistics services. in addition, attention will be paid to expanding the assortment of the marketplace and making the purchase process more convenient. express24 is a service for delivery of food, ready meals and various products from stores in uzbekistan. the service delivers food products, including markets, quality imported products, household chemicals. market products, for example, meat and dairy products from the oloy market, and products from the chorsu market, are provided with ease of delivery. following the development of the company, it is planned to merge express24 and yandex eats services into a single platform, which is american journal of business management, economics and banking volume 30 november 2024 p a g e | 40 www.americanjournal.org expected to increase the number of orders and optimize delivery processes. this partnership expands the choice for users and ensures faster delivery of orders. 5. international e-commerce platforms: wildberries.uz. this is the uzbekistan version of the international trade platform. advantages: wide assortment and fast delivery. aliexpress is one of china's largest online shopping platforms, founded in 2010 by alibaba group. (in uzbekistan) aliexpress offers its customers the opportunity to buy clothes, electronics, home appliances, accessories, and many other goods. the platform works worldwide and serves global customers. each platform is tailored to consumers with its own products and services. discussion in uzbekistan, electronic commerce is at the stage of its development. today, it is about one percent of the country's gdp. in order to further develop electronic commerce, it is necessary to determine the factors affecting it, to study the appearance of connections between them, and to make forecasts for future periods on this basis. in the coming years, the growth of the e-commerce market in uzbekistan can be ensured on the basis of the following factors: increase in population income levels; internet audience growth; level of attraction of internet users to electronic commerce; increase in product categories; growth of purchases within product categories. the above factors indicate the prospects for the development of electronic commerce in uzbekistan. the share of e-commerce in the total volume of retail trade in uzbekistan is 1.4%, this figure is 4% in russia, 8.3% in the usa and 9.9% in most countries of western europe. conclusion the role of e-commerce and markets is now incomparable for the further development of small business in the country. in the uzbekistan, small businesses have the opportunity to present their products to a wide audience through e-commerce, which helps them grow. also, the development of electronic commerce has a positive effect on the structure of the labor market of uzbekistan. the industrialization of high information technologies will create thousands of new jobs. in general, it should be emphasized that the opportunities for the development of electronic commerce in uzbekistan are growing year by year. its development creates opportunities for our national producers to open new markets and find new customers. acknowledgment i express my gratitude to all the researchers and economists conducting research in the field of ecommerce use in small business in uzbekistan, as well as to the founders of the online store, who used their data and scientific work to write this research paper. american journal of business management, economics and banking volume 30 november 2024 p a g e | 41 www.americanjournal.org references 1. указ президента республики узбекистан от 05.10.2020 год № уп-6079 «об утверждении стратегии цифровой узбекистан-2030 и мерах по её эффективной реализации» 2. suyunov dilmurod xolmuradovich, kenjabayev aman turgunovich, ro’ziyev abdumalik ortig’aliyevich. elektron tijorat. darslik. -t.: 2023. –298 b. 3. sodikov a. o'zbekistonda elektron tijorat rivojlanish bosqichlari va tahlili // "экономика и социум" №12(115)-1 2023. 719-725 betlar. 4. usmonova adiba azim qizi. o’zbekistonda elektron tijoratning sohalarda rivojlanishi // uzbek scholar journal volume21, october, 2023 www.uzbekscholar.com 1-7 pages. 5. абдухалилова л.т. интернет маркетинг. – т.: иқтисодиёт, 2019. 265 б. 6. müller, t. (2022). the role of digital platforms in supporting small business development in germany. journal of small business management, 60(3), 350-367. 7. davis, p. (2022). navigating online sales: small business success stories in e-commerce. journal of retailing, 98(2), 210-225. 8. бабкин а.в. цифровые платформы в экономике: понятие, сущность, классификация.// вестник академии знаний №54 (1) 2023 год 9. щелудько е.б, романец и.и развитие платформенных рынков в цифровой экономике. // инновационная экономика: перспективы развития и совершенствования.№5 (55)2021 год 10. махмудова г, ашуров з, раззакова б развитие цифровой экосистемы и формирование цифровых платформ в узбекистане //сетевое издание π-economy.№2 (15) 2022 год. http://www.uzbekscholar.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 49 www.americanjournal.org some aspects of current state of financing the hotel business in uzbekistan abdurakhmonova ziyoda abdullaevna 1 a b s t r a c t k e y w o r d s abstract. a number of scientific researches related to the field have been studied in researching some aspects of current state of financing the hotel business in uzbekistan. equity capital and structure of liabilities of hotels operating in the republic of uzbekistan, key aspects of financing the hotel business at agrobank jscb and others are analyzed. conclusions and proposals are developed based on the conducted research. hotel, hotel business, hotel finance, capital, equity capital, liabilities, financing hotel business. introduction extensive scientific research is being conducted worldwide on the attraction and effective use of additional funds in the financing and development of the hotel business. they mainly cover the role of the hotel business in the economy, types of hotels and the essence of their financing, the importance of attracting investors' financial resources to the hotel business, and issues of taking control of the hotel business. however, these studies have not sufficiently studied the current problems associated with the development of the hotel business by attracting free funds from local and foreign investors. in addition, the aspects of issuing bonds and preferred shares in the financing of the hotel business and thereby directing the funds received from them to new projects and ensuring their profitability have not yet found their positive solution. this, in turn, determines the relevance of research on improving the financing of the hotel business. literature review foreign economists orhan akova, gurel cetin, ibrahim cifci [1] analyzed in their scientific research that demographic factors should be taken into account when organizing a hotel business. in their opinion, male unemployment is higher in the hotel business and this directly affects work efficiency. “small and medium-sized hotels are capital-intensive firms, so they have a high level of fixed assets that allow them to easily access debt due to the ability to provide collateral to creditors. however, the capital-intensive nature of small and medium-sized hotels can increase the risk of the firm due to the high volatility of revenues arising from high fixed costs that do not change depending on changes in activity. therefore, it is important to analyze whether the leverage of small and medium-sized hotels is consistent with fixed capital or not,” [2] they state that the solvency of small business hotels should be constantly analyzed. in our opinion, it is extremely important to take into account all the risks when starting a hotel business and develop strategies for them. for this, first of all, it is necessary to analyze american journal of business management, economics and banking volume 31 december 2024 p a g e | 50 www.americanjournal.org the form in which the hotel will be organized and the compatibility of the strategic goals set for it with the sources of financing. s. zhang et al. studied the features of hotel financing in their research. in particular, “the mismatch of the terms between fixed assets and short-term liabilities, the need to adjust the sources of financing of inventories depending on the internal and external environment, and the high dependence of operating assets on equity capital” [3] are among them. f. sardo et al. noted in their research that “the profitability of hotels operating as small and mediumsized businesses depends on a number of factors, such as their experience, qualifications, level of knowledge of employees and managers, volatility of income, and capital structure” [4]. a. kopanelli conducted research on hotel finance. “when analyzing financial statements, three approaches to decision-making should be taken into account. first, the decision on direct investment in hotels is directly related to finding various investment projects, selecting one of the investment projects and evaluating it. second, the decision on hotel financing is directly related to the optimal capital structure and is carried out taking into account various long-term methods of corporate financing (for example, long-term loans, common shares, preferred shares). third, the decision on dividend policy means making a decision on whether to pay dividends to shareholders when the company makes a profit or to retain corporate profits and invest them in various investment projects” [5]. when financing a hotel business, one should try to choose the types of financing forms that are appropriate for the hotel industry. according to z. serrasqueiro and p. nunes, “firms in the hotel sector have specific characteristics that can affect the financing behavior of the firm. the capital-intensive nature of firms in the hotel sector, coupled with the high level of fixed costs resulting from changes in sales, can increase the risk of hotels due to their high level of income volatility” [6]. hotels can be small, medium or large businesses in various business forms. this aspect also affects the financing of the hotel business. the development of the hotel business is important in the development of tourism in the country. therefore, a number of economists have conducted research in this area. according to f. zhang et al., “transactions in the hotel industry are different from operations in other industries, since companies that have carried out mergers and acquisitions in the hotel sector have achieved positive results after the merger. the results show that domestic transactions and conglomerate acquisitions are the most common transactions in the hotel industry. the united states, great britain and australia are the three most active countries with 55% of acquiring and 60 acquired companies” [7]. in addition, the use of mergers and acquisitions in hotel operations should be considered at each stage of this process. in the process of economic development and modernization, the need for additional financing of any business entity is increasing. because in a market economy, it is impossible to compete and sell its products without new projects and innovations. as economists have noted: “the correct direction of investment flows in the social sphere and the implementation of new projects have an impact on the development of the national economy” [8]. financing the hotel business also requires constant investment resources. at the same time, it is worth noting the effective management of hotel resources, because as noted in scientific research: “in the context of economic modernization, effective management involves optimizing the resource potential of an enterprise. in this case, the importance of effective management of funds increases. financial resources in this case are of primary importance, since they are the only resource that can directly and in the short term become one of the resources of the enterprise in all its american journal of business management, economics and banking volume 31 december 2024 p a g e | 51 www.americanjournal.org forms” [9]. in our opinion, the effective organization of the hotel business and obtaining high profits depend on optimizing the use of resources and the formation of highly qualified personnel. it is no exaggeration to consider tourism and hotel business as an inseparable unit. in particular, according to economists conducting scientific research in this area: “currently, the tourism industry serves as the main source of income for many developing countries. exporting tourism products and services creates additional demand in the national economy, increases employment levels and increases foreign exchange earnings. accordingly, the tourism sector plays an important role in ensuring socioeconomic development and stability” [10]. it is worth noting that in order to increase the volume of domestic and foreign tourism, there must be a supporting infrastructure, especially hotels, that are suitable for it. analysis and results during our research, we studied the activities of a number of hotels operating in the republic of uzbekistan. in particular, we analyze the financial indicators of hotels such as regal stay, simma hotel, saltanat hotel, hotel elyorbek grand below. first of all, if we pay attention to the private capital of these hotels, we can observe that the changes in the volume of private capital during 2020-2022 were different (figure 1). figure 1. private capital of hotels operating in the republic of uzbekistan, billion soums [11] from the data in figure 1, it can be seen that the dynamics of changes in the private capital of the hotels operating in the republic of uzbekistan, regal stay, simma hotel, saltanat hotel, hotel elyorbek grand, were studied. it is worth noting that over the past three years, the indicators of regal stay, -2 0 2 4 6 8 10 12 14 16 18 regal stay simma hotel saltanat hotel hotel elyorbek grand -0.87 12.74 1.25 0.63 5.1 16.87 1.31 0.62 4 16.73 1.28 0.44 2020-yil 2021-yil 2022-yil american journal of business management, economics and banking volume 31 december 2024 p a g e | 52 www.americanjournal.org simma hotel have changed positively, while this indicator of hotel elyorbek grand has decreased. it can be noted that the indicator of saltanat hotel has been fluctuating. it should be noted that due to the lack of financial resources in the above hotels, the level of development and the change in the volume of private capital have not all been positive. in addition to private capital, external sources play an important role in financing the hotel business. below is an analysis of the sources of financial and material resources of regal stay, simma hotel, saltanat hotel, and hotel elyorbek grand (figure 2). figure 2. structure of liabilities of hotels operating in the republic of uzbekistan [11] figure 2 shows the composition of the liabilities of the regal stay, simma hotel, saltanat hotel, and hotel elyorbek grand hotels. based on the analysis, it should be noted that the share of bank loans in the regal stay hotel was 77.5 percent in 2020, and 93 percent in 2022. however, it should be noted that the share of financing at the expense of bank loans in other hotels is small. in national practice, the demand for cash flow in hotel operations remains high. due to this high demand, cash expenses occupy the main place in the structure of hotel and other accommodation expenses. as a result, the possibility of obtaining loans from commercial banks for a specific purpose 0% 20% 40% 60% 80% 100% regal stay (2020) regal stay (2021) regal stay (2022) simma hotel (2020) simma hotel (2021) simma hotel (2022) saltanat hotel (2020) saltanat hotel (2021) saltanat hotel (2022) hotel elyorbek grand (2020) hotel elyorbek grand (2021) hotel elyorbek grand (2022) long-term loans current loans bank loans taken debts current share of long term loans american journal of business management, economics and banking volume 31 december 2024 p a g e | 53 www.americanjournal.org is low. this situation negatively affects the ability of hotels to attract loans from commercial banks and, as a result of low cash turnover, slows down the growth of private capital. the introduction of cash credit products by commercial banks should be noted as one of the ways to solve these problems. figure 3. key aspects of financing the hotel business at agrobank jscb [11] since the introduction of cash loan products by commercial banks solves a number of problems, agrobank jscb has paid attention to these issues and introduced fully cash loan products for the purchase of fixed assets and business expansion. it is also worth noting that in the practice of lending to hotel projects by agrobank jscb, loans are issued in 100% cash form with a grace period of up to 4 months and funds are allocated at a rate of 26% for a total of 18 months (figure 3). various sectors of the hotel business participate in creating a product. therefore, companies operating in one sector are interested in financing enterprises in another sector. for example, tour operators can finance the development of hotel complexes in resorts where they send their clients. airlines can ensure the financial security of tour operators who widely use their services. the activities of many companies in the hospitality industry require a lot of labor. it is much more difficult to adapt their services to changes in demand. moreover, the operating cost depends on how the product is sold. commercial banks are effectively involved in financing the hotel business in uzbekistan. however, the requirement of a business plan when commercial banks allocate loans to the hotel business, in particular to hotels and other accommodation facilities, creates inconvenience for most hotels. this is because the fact that not all costs in the hotel business can be reflected in real terms, as well as the fact that income formation varies in different periods, and the seasonality of the hotel business has a high impact, hinder the formation of a business plan with high accuracy. in order to positively resolve the above issues, a number of commercial banks are introducing the practice of financing the activities of hotels and other accommodation facilities (hostels, motels, holiday homes, tourist bases, etc.) without requiring a business plan. term 18 months, annual interest rate 26 percent up to 100 percent in cash grace period up to 4 months american journal of business management, economics and banking volume 31 december 2024 p a g e | 54 www.americanjournal.org figure 4. number of hotel projects financed by commercial banks in uzbekistan in january 2024 [12] in particular, if we analyze the number of hotel projects financed by commercial banks in uzbekistan in january 2024, it should be noted that agrobank jscb is leading in financing hotel projects, and it should be noted that these hotel projects were financed without the requirement of a business plan. also, banks such as hamkorbank (1), ipak yuli bank (1), biznesni rivojlantirish bank (1), ipotekabank (2), sanoatqurilishbank (2), xalq bank (1), milliybank (2) are also active in this process (figure 4). conclusions in order to effectively organize the hotel business, it was also considered important to assess the rate of return on long-term investments in attracting financial resources. this is done by determining the amount, type and value of funds invested in the business. after that, it is determined how much of the funds will be received and at what rate, what part of the capital will be invested by shareholders and how much profit is expected from it. to characterize investment methods and determine their results, usually one situation is taken and each alternative situation is compared to it. for large projects, such an assessment is also important because the risk here is much greater. references 1. orhan akova, gurel cetin, ibrahim cifci, the relation between demographic factors and the turnover intention in pre-opening hotel businesses, procedia social and behavioral sciences, volume 207, 2015, pages 377-384 2. zélia serrasqueiro, paulo maçãs nunes, financing behaviour of portuguese smes in hotel industry, international journal of hospitality management, volume 43, 2014, pages 98-107, issn 0278-4319 3. soocheong (shawn) jang, chun-hung hugo tang, ming-hsiang chen. financing behaviors of hotel companies. // international journal of hospitality management, september, 2008. 478-487 pp. https://www.researchgate.net/publication/278716513_financing_behaviors_of_hotel_companies 4. filipe sardo, zélia serrasqueiro, helena alves. on the relationship between intellectual capital and financial performance: a panel data analysis on sme hotels. // international journal of 2 3 1 2 2 1 1 1 1 0 1 2 3 4 milliy bank agro bank xalq bank sanoatqurilishbank ipoteka bank biznesni rivojlantirish bank ipak-yuli bank hamkor bank other banks https://www.researchgate.net/publication/278716513_financing_behaviors_of_hotel_companies american journal of business management, economics and banking volume 31 december 2024 p a g e | 55 www.americanjournal.org hospitality management, volume 75, september 2018, pages 67-74. https://www.sciencedirect.com/science/article/abs/pii/s027843191730590x 5. anastasia kopaneli. finance, marketing, management and strategy planning. a qualitative research method analysis of case studies in business hotels in patras and in athens. // procedia economics and finance, volume 9, 2014, pages 472-487. https://www.sciencedirect.com/science/article/pii/s2212567114000495 6. zélia serrasqueiro, paulo maçãs nunes. financing behaviour of portuguese smes in hotel industry. // international journal of hospitality management, volume 43, october 2014, pages 98107. https://www.sciencedirect.com/science/article/abs/pii/s0278431914001418 7. fan zhang, qu xiao, rob law, seoki lee. mergers and acquisitions in the hotel industry: a comprehensive review. // international journal of hospitality management, volume 91, october 2020. https://www.sciencedirect.com/science/article/abs/pii/s0278431919304712 8. gulyamov s., jumanov n., raxmonov d., tashxodjaev m.. ijtimoiy sohada investitsiyalarning samaradorligi. monografiya //t: iqtisodiyot. – 2019. – s. 205-206. 9. olimjonov , r., & temirov, a. a. (2023). moliyaviy resurslar va ularning korxona faoliyatidagi ahamiyati . research and education, 2(4), 490–495. 10. abduraimov d.m. turizm infratuzilmasida iqtisodiy faoliyatni amalga oshirish omillari va xususiyatlari //iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. – 2021. – t. 2. 11. done by author 12. https://cbu.uz/oz/ o’zbekiston respublikasi markaziy banki ma’lumotlari https://www.sciencedirect.com/science/article/abs/pii/s027843191730590x https://www.sciencedirect.com/science/article/pii/s2212567114000495 https://www.sciencedirect.com/science/article/abs/pii/s0278431914001418 https://www.sciencedirect.com/science/article/abs/pii/s0278431919304712 https://cbu.uz/oz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 130 www.americanjournal.org participation of institutional investors in the capital market: in the case of uzbekistan omonov sardor ulmasovich phd, tashkent state university of economics, uzbekistan email: sardoromonov7777@gmail.com a b s t r a c t k e y w o r d s this article focuses on the current situation, participants and problematic aspects of the national capital market in the study of some issues in the activity of institutional investors in the capital market of our country. based on the analysis, appropriate conclusions and proposals are formed. capital market, institutional investor, commercial banks, insurance companies, investment funds, stock, bond. introduction in the effective implementation of economic reforms in our country, it is important to organize innovative development, create a healthy investment environment, and attract institutional investors to the economy. in this process, it is necessary to attract institutional investors not only to the real sector, but also to the capital market, to create the necessary conditions for their investment, and to develop the capital market by ensuring the participation of institutional investors. institutional investors are active in the capital market in order to effectively use their financial resources, expand their activities, and especially maximize profits. as a result of increasing the activity of institutional investors in the capital market, it is possible to develop the local capital market, effectively use free funds, increase investment attractiveness, and develop local enterprises. it is necessary to develop the local capital market and increase the activity of institutional investors based on the study of the activities of institutional investors in the capital market of developed and developing countries. by attracting foreign institutional investors, it is possible to develop the capital market in our country, ensure the introduction of new techniques and technologies, develop the infrastructure of the capital market, and increase the activity of institutional investors in the capital market. therefore, attracting institutional investors to the capital market of our country, expanding their participation, and developing the capital market becomes urgent. literature review researches have been carried out by various scientists in order to effectively establish the activities of institutional investors in the effective formation of the capital market, to create the necessary conditions for their free operation, to increase investment attractiveness, and to ensure the openness and reliability american journal of business management, economics and banking volume 32 january 2025 p a g e | 131 www.americanjournal.org of information. “a capital market is an organized market where individuals and businesses buy and sell debt securities and equity securities. it is a major source of funding for companies whose securities are allowed to trade by market regulators, as companies can easily sell their debt obligations and equity to investors. governments also use capital markets to raise funds, usually by issuing long-term bonds” [1]. the possibility of government participation in the capital market increases the importance of this market. “the capital market is a long-term securities market, usually covering securities with maturities of more than one year. the importance of capital markets for the efficient transfer of funds between borrowers and lenders cannot be overlooked” [2]. it should be noted that the possibility of long-term attraction of capital in the capital market is convenient for capital attractors. it is also necessary to emphasize the importance of the redistribution of funds in the capital market and the development of the economy. "the capital market plays an important role in the efficient use of financial resources and, at the same time, is effective in purchasing long-term financial assets. it also provides an investment opportunity for individuals and financial institutions” [3]. according to foreign scientists r.a.lambert, c.leuz, r.e.verrecchia, "an institutional investor is defined as an investor who has market power and thereby affects information transfer and pricing in the stock market" [4]. these highlighted aspects help to represent the impact of institutional investors on the capital market. f.wen, k.zou, x.wang highlighted a number of features of the activity of institutional investors. "as a legal entity, institutional investors invest in securities using their own funds or public funds. as institutional investors own the majority of assets under management, they play an increasingly important role in the stock market, and their activities are receiving widespread attention” [5]. this indicates that institutional investors can actively participate in the international capital market, both with their own assets and with borrowed capital. in order to widely attract investments to the economy of our country, the issues of "development of local capital markets, in particular, attraction of capital for lending to small and medium-sized business entities through the issuance of bonds" [6] have also been studied on a large scale, and these aspects further increase the importance of the capital market. according to s. elmirzaev, "in order to attract potential investors, it is necessary to take into account the level of taxation in the country where the investor's activities are organized in the process of making presentations. because in countries with a high tax burden on dividends, the level of desire to see income by buying shares is extremely low" [7]. in order to develop the capital market, this aspect should also be taken into account by the state. a. alikulov noted that "the capital market is a market where medium and long-term securities are traded" [8]. he also paid attention to the issues of increasing the possibilities of attracting capital from the capital market, applying foreign experience in the development of the capital market to the national practice. research methodology the methods of scientific abstraction, statistical analysis, systematic analysis, comparative analysis, analysis, and synthesis were used to study some issues in the activity of institutional investors in the capital market. american journal of business management, economics and banking volume 32 january 2025 p a g e | 132 www.americanjournal.org analysis and results if we pay attention to the participation of institutional investors in the capital market of our country, we can say that the indicators of institutional investors indicate that there are a number of issues that need to be resolved in the capital market. in particular, if we study the results of the participation of institutional investors in the trading operations of rfb "tashkent", we can see that banks, insurance companies, etc. are the main participants (table 1). table 1 shows the results of the participation of institutional investors in trade operations at rfb "tashkent", according to which insurance companies bought securities of banks worth 5933.9 million soums. moreover, insurance companies bought securities worth 1,754.6 million soums of state-owned companies. other companies bought securities of banks worth 6535.3 million soums, securities of insurance companies worth 10159.7 million soums. table 1 analysis of the participation of institutional investors in the trading operations of rfb "tashkent" (as of february 1, 2022) № investors in a short position investors in the buying position (million soums) individual insurance companies other companies 1. banks 1500,2 5933,9 6535,3 2. state, local government or foreign organizations 32607,1 3. individual investors 13485,7 10,4 700,6 4. insurance companies 1,7 10159,7 5. other companies 4836,6 6. companies with a state share 1754,6 it is necessary to analyze the profitability of the shares of institutional investors and other joint-stock companies participating in our local capital market in order to attract free money in the hands of the population to the capital market, create conditions for the active participation of local and foreign investors in the capital market, and thereby develop the capital market. table 2 analysis of profitability of shares of institutional investors and other joint-stock companies in uzbekistan (by the end of 2021) [10] № joint-stock companies date amount of dividend (soums) return on shares (in relation to nominal value, %) institutional investors 1 "mirzo ulug'bek" jsc if 9.09.2022 312,50 50,00 2 "olim-f" jsc if 7.09.2022 50,00 50,00 3 "capital bank" jsc 17.08.2022 65,09 6,51 4 aitb "silk road". 7.07.2022 0,69 6,90 5 "alskom insurance company" jsc 5.07.2022 138,00 10,00 6 jsc "trustbank". 29.07.2022 123,00 12,30 american journal of business management, economics and banking volume 32 january 2025 p a g e | 133 www.americanjournal.org № joint-stock companies date amount of dividend (soums) return on shares (in relation to nominal value, %) 7 "dd general insurance" jsc st 27.06.2022 30,34 3,03 8 "global insurance group" jsc st 16.06.2022 30,00 3,00 9 "gross" insurance company jsc 15.06.2022 290,0 29,00 10 "my insurance" jsc st 10.06.2022 124,16 12,00 11 "baraka" if 8.06.2022 21,00 21,00 12 "inson insurance" jsc 7.06.2022 3,68 3,68 13 "revenue plus" jsc if 3.06.2022 250,00 50,00 14 "agros hayot insurance company" jsc 3.06.2022 30,34 3,03 15 jsc "euroasia insurance" sc 1.06.2022 219,54 22,00 16 "new life" insurance company jsc 24.06.2022 297,00 29,70 17 insurance company "asia insurance" jsc 26.05.2022 184,30 18,40 18 insurance company "sqb insurance" jsc 24.05.2022 5,57 0,56 19 "apex insurance" jsc 10.05.2022 39,31 3,93 20 "ingo-uzbekistan" insurance jsc 21.04.2022 311,00 23,92 21 "uzbekinvest" export-import insurance company jsc 9.07.2022 15,22 1,52 22 "aria" insurance organization jsc 29.06.2022 31,50 3,15 23 "semurg" if jsc 26.03.2022 100,00 100,00 24 "garant bank" jsc 24.06.2022 1,32 1,32 25 jsc "railway-insurance" jsc 21.06.2022 227,49 22,75 other joint stock companies 26 "kokon mechanical plant" jsc 30.06.2022 9,00 1,00 27 photon jsc 8.07.2022 2328,14 84,70 28 "biokimyo" jsc 16.09.2022 6175,00 184,30 29 "ozagrolizing" jsc 14.09.2022 358,79 14,15 30 "kokon biochemistry" jsc 13.09.2022 83,1 8,10 31 "galla-alteg" jsc 6.09.2022 4737,00 1895,00 32 cheii "tashkentvino combine" jsc 15.08.2022 4724,00 118,10 33 "uzkimyosanoat" jsc 10.08.2022 33,78 2,95 34 jsc "territory electric networks". 15.08.2022 2,25 2,25 35 "uzavtosanoat" jsc 8.07.2022 0,05 5,00 36 "republican currency exchange of uzbekistan" jsc 6.07.2022 7462,14 746,21 37 "jizzakh plastic" jsc 4.07.2022 78,14 2,55 38 jv "uzkabel" jv 27.06.2022 2000,00 133,33 39 "tashkent rfb" jsc 4.07.2022 24,85 0,97 40 "tashkent products" jsc 20.09.2022 164,26 54,00 table 2 presents the analysis of stock returns of institutional investors and other joint-stock companies in uzbekistan. in this table, 25 institutional investors (4 commercial banks, 5 investment funds and 16 insurance company) and 15 other joint-stock companies. among institutional investors, the highest rate of return on shares compared to the nominal value was recorded by "semurg" if jsc (100%), while the investment funds of "mirzo ulugbek" jsc if, "olim-f" jsc if, "daromad plus" if jsc recorded 50% ranked next in terms of profitability. it should be noted that the lowest indicators belong to insurance companies. in particular, "sqb insurance" sk jsc (0.56%), "uzbekinvest" export-import insurance company (1.52%), "global insurance group" jsc st (3.00%), "agros hayot insurance american journal of business management, economics and banking volume 32 january 2025 p a g e | 134 www.americanjournal.org company" jsc (3.03%), "dd general insurance" jsc st (3.03%), "aria" st jsc (3.15%), "inson sugurta" jsc (3.68%), "apex insurance" the return on shares of insurance companies such as aj (3.93%) did not even reach 4%. if we study at the level of commercial banks, the lowest indicator belongs to "garant bank" jsc (1.32%). however, the performance of other analyzed banks is not satisfactory. if we analyze the profitability of shares of other joint-stock companies, the lowest indicators are for "tashkent rfb" jsc (0.97%) and "ko'kon mexpnika zavodi" jsc (1.00%), and the highest indicators are for "galla-alteg" jsc (1895.00%) and "republican currency exchange of uzbekistan" jsc (746.21%). figure 1 shows the volume of transactions with securities at rfb "tashkent" over the years, from 0.3 trillion soums in 2017 to 4.8 trillion soums in 2022. the significant increase of this indicator in recent years is due to the fact that public offering of stocks is organized in the national practice and due to the implemented measures. figure 1. the volume of transactions with securities at rfb "tashkent" (trln. soums) [11] if we pay attention to the market capitalization of freely traded securities in countries relative to gdp, it can be seen that the indicator of our country is much lower than other countries (figure 2). in particular, the indicators of countries with developed capital markets, such as the usa and singapore, were 195% and 192%, respectively, while in kazakhstan this indicator was 27%. in uzbekistan, the market capitalization of freely traded securities in relation to gdp is 0.38%. 0.3 0.7 0.4 0.6 1.2 4.8 0 1 2 3 4 5 6 2017 2018 2019 2020 2021 2022 american journal of business management, economics and banking volume 32 january 2025 p a g e | 135 www.americanjournal.org figure 2. market capitalization of freely traded securities in countries relative to gdp (january 2023) [11] based on the above analysis, we should note that the profitability level of the shares of most of the participants of the local capital market is not satisfactory. in order to attract free funds of potential investors to the capital market, the profitability of securities in the capital market should be at a satisfactory level. otherwise, potential investors can direct their funds to bank deposits or other business activities based on their potential and experience to get more income. conclusions the following conclusions were formed in the study of some issues in the activity of institutional investors in the capital market. first of all, most of the local capital market participants' shares are not at a satisfactory level of profitability. in order to attract free funds of potential investors to the capital market, the profitability of securities in the capital market should be at a satisfactory level. otherwise, potential investors can direct their funds to bank deposits or other business activities based on their potential and experience to get more income. secondly, in order to develop the capital market in uzbekistan and increase the activity of institutional investors in it, we believe that it is appropriate to focus on attracting foreign institutional investors as investors or financial intermediaries. therefore, it is necessary to create conditions for foreign institutional investors, especially foreign banks and investment intermediaries, to participate in the local capital market. in particular, it is necessary to provide foreign banks and investment intermediaries with the opportunity to carry out securities underwriting activities without obtaining a license. in this case, it is necessary to develop special requirements and criteria for foreign banks and investment intermediaries to carry out securities underwriting activities without obtaining a license. thirdly, we believe that it is appropriate to develop measures to increase the participation of these banks in the capital market, taking into account the large number of commercial banks with a state 195% 192% 69% 33% 27% 0.38% 0% 50% 100% 150% 200% 250% usa singapore vietnam turkey kazakhstan uzbekistan american journal of business management, economics and banking volume 32 january 2025 p a g e | 136 www.americanjournal.org share in the commercial banks of our country. in particular, it is necessary to effectively establish the activities of investment intermediaries in the stock market by commercial banks with a state share. through this, the intermediary activities of commercial banks will be established in the capital market, and it will be possible to increase the activity of institutional investors. references 1. https://www.accountingtools.com/articles/what-are-capital-markets.html 2. zaheer ahmed, michel raj, s. prakash, p. natarajan, jonardan konear. global financial markets and instruments. // pondicherry university, mba – international business. – page 11. 3. dhan raj chalise. secondary capital market of nepal: assessing the relationship between share transaction and nepse index. // management dynamics, vol. 23, no. 2: 53-62, 2020; 4. lambert r.a., leuz c., verrecchia r.e. information assymmetry, information precision, and the cost of capital. // review of finance. volume 16, issue 1, january 2012, pages 1-29; 5. fenghua wen, qian zou, xiong wang. the contrarian strategy of institutional investors in chinese stock market. // finance research letters. 11 november 2020. – p.18; 6. ф.мухамедов. ўзбекистонда қимматли қоғозлар бозори савдо тизимларини ривожлантириш йўналишлари: иқтисодиёт фанлари доктори (dsc) диссертацияси автореферати. – т.: тми, 2019. – 7 бет. 7. elmirzaev, s. (2019) "the practice and analysis of mass positioning of shares of joint-stock companies," international finance and accounting: vol. 2019 : iss. 1 , article 3. available at: https://uzjournals.edu.uz/interfinance/vol2019/iss1/3 8. а.алиқулов. ўзбекистонда фонд бозори орқали капитал оқимини ошириш: иқтисодиёт фанлари бўйича фалсафа доктори (phd) диссертацияси автореферати – т.: тдиу, 2021. – 8 б. 9. https://www.uzse.uz/abouts/uzstatistics 10. http://openinfo.uz/uz/facts/?org_name=aksiyadorlik&type=32&date_from=&date_to= 11. https://deponet.uz/uz/page/kimmatli-kogozlar-markaziy-depozitariysi-davlat-korhonasining2022-yil-davomidagi-faoliyati https://www.accountingtools.com/articles/what-are-capital-markets.html https://uzjournals.edu.uz/interfinance/vol2019/iss1/3 https://www.uzse.uz/abouts/uzstatistics http://openinfo.uz/uz/facts/?org_name=aksiyadorlik&type=32&date_from=&date_to https://deponet.uz/uz/page/kimmatli-kogozlar-markaziy-depozitariysi-davlat-korhonasining-2022-yil-davomidagi-faoliyati https://deponet.uz/uz/page/kimmatli-kogozlar-markaziy-depozitariysi-davlat-korhonasining-2022-yil-davomidagi-faoliyati american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 161 www.americanjournal.org the development of the economydservices in the field of effective use of the resources of the way ortiqova madina akramjanovna kimyo international university in tashkent branch namangan, the direction business administration (mba) student of master a b s t r a c t k e y w o r d s this article discusses the importance of effective use of the resource in the development of the sectors of the economy. there are ways to determine the classification of the resource, production premium, labor productivity and capital premium. economy, service, resource, labor productivity, premium cost. introduction one of the important sectors of the service sector of the economy is his role in this field are constantly growing the number of employees is also increasing. this trend belongs to the world economy and uzbekistan in particular. in such conditions the rational use of the resources of the enterprisesat the topical issues of the quality of services remainmoqda. to solve this problem of resources that are available in the enterprise management process is needed to improve. any management construction management object classification and analysis of the organizational structure is based on. in such a case, the enterprise is subject to management is that set of resources is the concept of resources, as resources need to identify situations that can be of object management. resources (like the band. ressource — auxiliary means means means) money funds, raw materials, natural, economic, labor, currency, and may be others. in a broad sense — in the life of society means ensuring the production of the express, which means it is "economic resources used in this economic activity means, including natural resources, labor and capital is financial capital resources and money, it also is regarded as the economic resources". [1] the general classification of resources has adopted emas. economic activity that is used in the classification of the type of resources are: natural; the means of production; labor relations; information; financial; foreign (currency reserves, foreign trade relations of the network). [2] in our opinion, the activities of the enterprises of the service sectorat resources are the following: american journal of business management, economics and banking volume 23 april 2024 p a g e | 162 www.americanjournal.org material; financial; employees (labor); intangible (intellectual ideas). in this context resources general classification 1-in the picture. this classification of any economic resources facilities, including the university can be used for. accounting and the use of resources that are responsible for the classification of the range of services offered confirms. 1-graph. general classification of resources every issue always increase the effectiveness of economic production andthe fbng a pressing problem, as was its focus. the reason for this is that the country is facing important without the production efficiency of the issues the task will not be accomplished independent of speeding up economic development. the main purpose of production in a market economy economic reason to get at a profit for each sub'strives to bring a welcome addition to the benefits of more. therefore, the production efficiency in determining the benefits of taken (f) the costs of resources to the production of spent (x) is determined by the ratio, that is: 𝑅` = 𝐹 𝑋 × 100%. here: r` norms of the benefits of x – is the cost of economic resources. the versatile effectiveness of the production of the issue is, it participated in the full expression of the productivity of the factors, which indicate the level of effective use of them from the indicator system are used. labor productivity is one of them. this power unit of labor productivity during the working time of the product produced and the ability to create the product, it is said (consumption value) is determined by the proportion to the amount of labor spent. you much labor productivity, the product with m, while the time spent on work v with the character, considering labor productivity is determined as follows: 𝑀𝑈 = 𝑀 𝑉⁄ . in exchange for each unit of labor spent on labor productivity on that man live, at the expense of the product produced is determined by the amount of man-hours. participated in determining capital productivity capital productivity in the production of each unit of the product obtained in exchange for income or profit is determined. capital productivity, you 're in the production participated in the amount of capital k, the product m, gross income yadi with benefits defined f is formed by considering the following formula: sources material financial mehnat intellectual american journal of business management, economics and banking volume 23 april 2024 p a g e | 163 www.americanjournal.org 𝐼𝑇′𝑆 = 𝑀 𝐾⁄ ; 𝑆 = 𝑌𝐴𝐷𝐼 𝐾⁄ ; 𝑆 = 𝐹 𝐾⁄ . by the efficient use of limited economic resources and production capacity needs to increase the level of the ministry of economy and solve the necessary problems before the following problems will arise. 1. acceptable production and servicing of the options (the most necessary and cost-effective types) selection and to attract more resources to develop. 2. each unit of available resources save-tergab effective use. 3. scientific-technical achievements and the introduction of new technologies, new energy, raw material types, their finding sources to attract use of resources, achieve an increase in productivity. to solve these problems, the need effective use of resourcesto means. the effective organization of the activities of the enterprise means. references 1. ekonomicheskiy slovar http://dic.academic.ru/library.nsf/econ_dict/ 2. lopatnikov l.i. ekonomika-matematicheskiy slovar. – m.: nauka, 1987. – s. 352-353. 3. a ortikov. industrial economy. textbooks. t.: tdiu, 2009. 236 b http://dic.academic.ru/library.nsf/econ_dict/ american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 36 www.americanjournal.org analysis of the current state of development of the securities market in uzbekistan shomirov azizbek abdurashidovich tashkent state university of economics, phd., associate professor of the department of “valuation and investments” a b s t r a c t k e y w o r d s the article examines issues related to current problems and trends in the development of the international securities market in the current unstable socio-economic conditions on the global stock market. it also touches upon issues related to the situation on the securities market in the republic of uzbekistan. the main factors influencing the development of the stock market, the main problems and possible solutions for the issue of securities are considered. stock market, securities market, investments, emission, financial instruments. introduction the current situation in the global economic space shows that the securities market, as part of the financial market, is an effective mechanism for the redistribution of funds through the use of various financial instruments, including securities, as well as bonds, shares, investment units, depository receipts, which indicates the relevance of this article. the purpose of the scientific research is to consider the main trends in the development of the international securities market in the current unstable situation. research objectives: ⎯ conduct a literature review on the topic under consideration; ⎯ conduct an analysis of the current situation on the international securities market, including the securities market of the republic of uzbekistan; ⎯ identify the main problems on the international securities market; ⎯ reveal possible directions for solving problems on the securities market. literature review despite its long history of development the beginning was laid in the 16th century, when in 1556 the stock exchange in antwerp began its activity, many scientific studies on the problems of the securities market, there are still many unaddressed problems in this area. american journal of business management, economics and banking volume 33 february 2025 p a g e | 37 www.americanjournal.org in russia, trading exchanges appeared only at the end of the 18th century the circulation of liquid securities in the form of shares, in uzbekistan the securities market began its operation only in march 1991 with the establishment of the universal commodity and stock exchange “tashkent” [9]. as already noted, the problems of the securities market have been considered by many researchers. for example, konstantin isaakovich sonin, a famous russian economist, nobel laureate, author of many works on the theory of auctions and economics, compares the dependence of the problems of the securities market on the economic activity of many financial organizations and financial crises [6]. there are many different theoretical views concerning the problems of the securities market in the works of both domestic and foreign economists, touching upon the problems in relation to the organization of the securities market, stock exchanges, their organization and main characteristics. theoretical and practical issues of the development of the international securities market are disclosed in the scientific works of such economists as abramov a.e. [2], butikov i.l. [3], krutova n.a. [4], pankova v.a. [5], urusova a.b. [7], shokha’azamiy sh.sh. [8], ibodullaev a.a. [9] despite the unstable socio-political and economic situation in the world, due to various reasons war, inflation, rising interest rates, rapid decline in purchasing power, most stock exchanges successfully continue their activities. analysis and results let’s conduct a brief analysis of the international securities market indicators. according to the available data presented on the freedom finance website [10], over the past five years, the s&p 500 stock index has amounted to 103.6%, in 2023 compared to 2022 it has grown by 21.3%; the nasdaq technology index has amounted to 193.3% over the past five years, in 2023 compared to 2022 it has grown by 39.0%. the yield of the european securities market over the past five years has amounted to 62.4% and in 2023 compared to 2022 it has grown by 16.9%. if we talk about msci global stocks, their growth is observed, which for january-march amounted to 7.8%, which is one of the highest indicators since 2020. despite the crisis, the largest stock markets in the united states are still nasdaq and the new york stock exchange, whose main goal is to create a free market zone that allows traders to invest in capital. as of 01.01.2024, the united states is the leader in the number of investors more than 59% and a market capitalization of 55,820,772 million us dollars for 2023 [11]. in second place is japan 7.4%, great britain 5.2%, china 4.8%, france 3.9%, canada 3.8%, then come switzerland, australia, germany, india, taiwan and south korea, russia, unfortunately, due to many reasons, including sanctions, has less than 1% of the share of investments in the world stock market. american journal of business management, economics and banking volume 33 february 2025 p a g e | 38 www.americanjournal.org figure 1 – share of the world stock market, % [10] thus, the united states still maintains its leading position, but there is a tendency for stronger players to appear on the international securities market, which have good potential in the future. the deterioration of economic indicators in the financial market has led to instability of the financial system and a loss of public confidence in financial instruments. in order to achieve the goals of sustainable economic growth in the country, it is necessary to find ways to increase the use of financial resources through financial market mechanisms. in order to accelerate the pace of economic development, it is important that more and more people begin their investment activities as private investors, investing money in securities. but, at the same time, it should be noted that the efficiency of the stock market largely depends on the stage of development of the country, since the type of economic system and model have a direct impact on the following aspects, depending on the development model of the state’s economic system. figure 2 factors influencing the activity of the securities market [7] as for the republic of uzbekistan, the main problem of the stock market is the low level of its internationalization. it is also necessary to note the following barriers that hinder the successful development of the securities market in the republic: • the presence of restrictions on the areas of activity of potential investors the market of the republic is focused on domestic investments first of all, therefore the share of foreign investments is insignificant; • the state implements a regulatory policy in the securities market, thus creating obstacles for foreign investments [9]. 59.0%7.4% 5.2% 4.8% 3.9% 3.8% 2.5% 2.2% 1.8% 1.6% 1.3% 1.0% share (%) usa japan united kingdom china france canada switzerland 1 • legislative framework regulating the market 2 • actions of the central bank in relation to the securities market 3 • fundamental goals pursued by the securities market american journal of business management, economics and banking volume 33 february 2025 p a g e | 39 www.americanjournal.org but, at the same time, the securities market of the republic today is in the process of integration into the international securities market, and issues are being resolved on allowing foreign investors to invest in the republican capital market on a selective basis. the possibility of foreign capital inflow into the republic will allow: ❖ to increase the role of the securities market in financing the state economy; ❖ to increase the share of securities in circulation; ❖ to promote the expansion of the securities market. an important problem of the stock market of uzbekistan is such negative factors of macroeconomic indicators as: ▪ increase in public debt; ▪ budget deficit; ▪ growth in inflation. as a result, the securities market of uzbekistan acts as an ineffective regulator of the monetary system of the republic, putting a burden on participants in monetary relations and reducing the amount of capital available for deposits of private investors. artificial intelligence has become a new trend in 2023 due to the active development of technologies. for the market of the republic of uzbekistan, ai technologies have become one of the important triggers in the first half of 2024. currently, there are a lot of investments in artificial intelligence, which, in 2023 alone, accounted for 26-32% of the growth of the s&p 500 on the international securities market [11]. today, the securities market of the republic of uzbekistan plans to increase the capitalization of freely traded shares by more than 20 times by 2030, as of today, the capitalization level is more than 450 million dollars. the total value of shares in free circulation was brought to 45 trillion soums by the end of 2023. this is the equivalent of $3.7 billion, 5% of the republic's gdp. this figure is $100 million higher than in 2022. but in relation to gdp, it remained at 0.4%. diagram 1 shows the market capitalization of freely traded shares on the stock market of uzbekistan for the period 2021 and january 1, 2024. of course, the weak dialogue between the state and participants in the capital market of the republic does not have the best effect on the development of the stock market in the republic. the following can be named as the main reasons for the negative impact on the activities of the securities market in the republic of uzbekistan: figure 3 main problems in the securities market in the republic of uzbekistan1 1 compiled by the author. frequent change of regulator shortage of qualified personnel lack of proper control over implementation american journal of business management, economics and banking volume 33 february 2025 p a g e | 40 www.americanjournal.org but, at the same time, with the new regulator, the capital market received a roadmap for the development of the segment until 2025. perhaps the main thing it provides for is the launch of a single depository system and the establishment of communication with international players. the lack of basic infrastructure is the main reason why foreign investors ignore the republic’s stock market. it is planned that uzbekistan will introduce a single depository system from january 1, 2025. for the successful systematic development of the country’s stock market, further diversification of the economy is necessary with the participation of a larger number of industry enterprises, stimulating their borrowing on the stock market through corporate bond issues. thus, at the moment, almost 90% of the small number (27) of corporate bond issuers are in the banking services and insurance company services sector (see fig. 4-6). figure 4. issuers of securities in the republic of uzbekistan as of 01.01.2024 [11] figure 5. issuers of bonds in the field of activity in the republic of uzbekistan by the number of issuers as of 01.01.2024 [11] figure 6. issuers of shares in the field of activity in the republic of uzbekistan by the number of issuers as of 01.01.2024 [11] 7.4% 3.7% 48.2% 40.7% by number of issuers industry agriculture services finance 23.3% 18.3% 27.0% 31.4% by number of issuers industry agriculture services finance 0 200 400 600 800 01-01-2023 01-01-2024 631 630 25 27 issuers of shares bond issuers american journal of business management, economics and banking volume 33 february 2025 p a g e | 41 www.americanjournal.org conclusions and suggestions at the moment, the state authorities are trying to encourage the active participation of foreign investors in equity capital and bonds. for example, investors who purchase company shares can count on tax benefits. legal entities that are not residents of the country are subject to a preferential tax rate of 5% on dividends, and investors from other countries are exempt from paying taxes on income from interest on bonds. during this period, special attention should be paid to effective legislative regulation of the securities market and blocking the possibility of speculative processes. but, nevertheless, the prospects of the financial market of the republic of uzbekistan are associated with the development trends of a rather contradictory situation. new innovative tools and platforms for attracting and investing capital are increasingly appearing on it, which should expand sources of financing and increase competition. in order for the participation of the population in the financial market to become a sustainable trend, it is necessary to improve the culture of interaction between financial intermediaries and clients themselves, mainly in the field of investment financial services. we should not forget about the need to improve the financial literacy of all participants in the financial market, and it is also important to monitor threats to financial security. references 1. law of the republic of uzbekistan dated july 22, 2008 no. lru-163 “on the securities market” (new edition, approved by the law of the republic of uzbekistan dated june 3, 2015 n.lru387) // url: https://lex.uz/docs/1374867// url: https://lex.uz/docs/1374867 2. abramov, a.e. russian stock market: trends, challenges, development guidelines // economic issues. 2021. no. 11. p. 5-32. 3. butikov i. securities market. t .: konsauditinform, 2001. 496. 4. krutova, n.a. analysis of modern trends in the development of the financial market in russia // bulletin of eurasian science. 2023. vol. 15. no. 3. p. 23-24. 5. pankova, v.a. retail financial markets as a catalyst for the development of the financial sector // economic issues. 2021. no. 11. p. 33–53. 6. sonin, k.i. economics of banks and financial crises (nobel memorial prize 2022) // economic issues. 2023. no. 2. p. 5–17. 7. urusova, a.b. mechanism of functioning of the financial market // international journal of applied sciences and technologies “integral”. 2020. no. 1. p. 238–243. 8. shokha’azamiy sh.sh., “financial market and securities”. textbook.-t. 2012: “science and technology”. 9. ibodullaev a. a. development of the organized securities market in uzbekistan // bulletin of science and practice. 2021. vol. 7. no. 3. p. 236-242. 10. world financial markets, official website // access mode: https://ru.investing.com/markets/ 11. freedom finance official website//access mode: https://ffin.uz/about. https://lex.uz/docs/1374867/ https://lex.uz/docs/1374867 https://ru.investing.com/markets/ https://ffin.uz/about american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 72 www.americanjournal.org practice of creditation to small businesses by commercial banks of the republic of uzbekistan olimova muxlisa vohidjon qizi tashkent state university of economics a b s t r a c t k e y w o r d s the practice of lending to small businesses by commercial banks of the republic of uzbekistan was analyzed. the structure of state support for lending to small businesses by banks in our country was considered. small business, banking sector, banking system, basic accounting, international standard. introduction developing the economy of the republic of uzbekistan and strengthening the activities in this direction and bringing them to the forefront is one of the priority tasks today. the role and place of commercial bank loans are very important in solving the main tasks aimed at increasing the development of the country and increasing the well-being of the population, as well as in increasing the financial capabilities of borrowers. we believe that in order to regulate the lending process by commercial banks, it is important to first regulate credit issuance. today, measures aimed at developing the banking sector are being implemented in our country, and as a result, tangible achievements have been achieved. in particular, the law of the republic of uzbekistan “on the central bank of the republic of uzbekistan” dated november 11, 2019, in a new edition in line with international standards, the law of the republic of uzbekistan “on banks and banking activities” dated november 5, 2019, the law of the republic of uzbekistan “on currency regulation” dated october 22, 2019, and the law of the republic of uzbekistan “on the regulation of the currency” dated october 1, 2019 the laws "on taxes and tax systems" were adopted in november. analysis and discussion of results also, in recent years, the government has adopted a number of resolutions, decrees, and state programs that directly affect the banking system and lending activities of small businesses. american journal of business management, economics and banking volume 31 december 2024 p a g e | 73 www.americanjournal.org figure 1. the structure of state support for lending to small businesses by banks in our country article 24 of the civil code of the republic of uzbekistan states that "a citizen has the right to engage in entrepreneurial activity as an individual entrepreneur, starting from the date of state registration." the resolution of the president of the republic of uzbekistan no. rq-3270 dated september 12, 2017 “on measures to further develop and increase the stability of the banking system of the republic” states that “timely identification of bank risk and its occurrence, prevention, improvement of the structure of bank assets and the state of the credit portfolio, strict adherence to loan repayment periods and approved schedules, and the elimination of overdue loans” "recommendations were made to take all necessary measures to prevent the formation of debts, to terminate the practice of lending to loss-making organizations, to increase the attractiveness of banking services and to rationalize the tariff policy, taking into account the reasonable profitability of the bank." based on the resolution of the president of the republic of uzbekistan dated december 21, 2018 no. rq-4071 “on measures to ensure the financial stability of commercial banks, increase the efficiency of their activities and improve credit policy”, “in order to ensure the continuity of the activities of economic entities, it is necessary to expand the use of “revolver” loans, open credit lines and other short-term loans, and "strictly implement the approved repayment schedules and take measures to prevent the emergence of overdue debts." the adoption of the decree of the president of the republic of uzbekistan no. rf-5992 dated may 12, 2020 "on the strategy for reforming the banking system of the republic of uzbekistan for 20202025" was another major step towards lending to small businesses. based on the decree, “the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025 has been developed taking into account the important conclusions and recommendations of the world bank based on the results of a study of the current state of the country's banking system. the strategy defines the goals, objectives and priority areas of development of the banking system, directions of transformation and reform of the banking system in 2020-2025, ways to find possible solutions based on the experience of transforming the financial sector of foreign countries and taking into account global trends in the financial sector, and also stipulates the implementation of the following: 1. "credit portfolio and improve the quality of risk management, achieve moderate growth in lending volumes; 2. taking into account the advantages of the regional network of agrobank jsc and microcreditbank jsc, their activities are aimed at supporting small and medium-sized businesses and agricultural producers through state loans, providing services to individuals in regions, including remote districts creating a business environment special legal regulation state support for lending to small businesses by banks american journal of business management, economics and banking volume 31 december 2024 p a g e | 74 www.americanjournal.org where it is difficult to provide financial services, and providing financial support to small businesses. "; 3. "increasing the accessibility of financial services to the population and business entities, including underserved segments (low-income individuals, rural residents, micro-firms and small businesses) and expanding access to basic banking services (deposits, loans and mortgages)"; 4. "the fact that the tasks of increasing the scope and quality of services provided to small and mediumsized businesses, including through the use of information and communication technologies, are set indicates the need for banks to study foreign experience in lending to small businesses and explore opportunities to apply it in their own." the decree of the president of the republic of uzbekistan no. rf-4848 dated october 5, 2016 “on additional measures to ensure the rapid development of entrepreneurial activity, comprehensive protection of private property, and qualitative improvement of the business environment” indicates that the legal protection of private property is a state policy that has reached a new level. it also strengthens "granting broad freedom to small business entities, radically reducing interference in their activities, ensuring timely prevention of violations, increasing the effectiveness of their prevention, and preventing violations" as the most important priority and the first task of state bodies. the decree of the president of the republic of uzbekistan no. rf-5466 dated june 27, 2018 “on the state program “youth our future”” stipulates the implementation of the following: “implementation of loans and leasing of property for a period of 5 years with a grace period of up to 12 months”; “implementation of loans and leasing of property through “xalq bank”, “microcreditbank” and “agrobank””; "financing of business initiatives, startups, ideas and projects of young people based on model business plans developed by the chamber of commerce and industry of the republic of uzbekistan together with financing commercial banks"; financing commercial banks make decisions on preferential loans and leasing of property based on the submitted address list in the established procedure. "the fact that the processing time for applications for preferential loans and property leasing by commercial banks for the implementation of young people's business initiatives, startups, ideas and projects is set to no more than 3 business days"100 creates great opportunities for young entrepreneurs. the adoption of the resolution of the president of the republic of uzbekistan no. rq-3777 dated june 7, 2018 “on the implementation of the every family entrepreneur program”101 has become a real help in providing entrepreneurs with credit funds. the resolution also provides for loans from commercial banks: – “recommendations of sector heads and local citizens’ assemblies on the socio-economic development of regions for the development of family entrepreneurship in an amount equal to one hundred and fifty times the base settlement amount”; – “third-party guarantees, insurance policies, pledges of property purchased on credit, guarantees of the fund and other types of collateral within the framework of legal acts for small business entities that have passed the state register in the amount of up to one thousand times the basic settlement amount”; – “when lending to investment projects of business entities in an amount exceeding one thousand times the base settlement amount, collateral is allocated based on the types of collateral established within the framework of legal acts. in this regard, loans will be provided through "xalq bank", american journal of business management, economics and banking volume 31 december 2024 p a g e | 75 www.americanjournal.org "microcreditbank" and "agrobank" at the key rate of the central bank of the republic of uzbekistan, and from january 1, 2022, at rates set independently by commercial banks based on market principles, which also plays an important role in the development of entrepreneurship. the resolution of the president of the republic of uzbekistan no. rq-54 dated december 16, 2021 “on additional measures to increase the efficiency of land use, as well as financial support for entrepreneurial initiatives of the population” is significant in that it has brought entrepreneurship to a new level. the head of our country also said, "...in the current era of global pandemic, we consider protecting the health of the population, including not leaving entrepreneurs in the middle of their own problems, as one of our important goals. because behind each business structure are the jobs of many people, the income of their families, and the fate of today and tomorrow. the number of small and private businesses in the new uzbekistan will double in the next decade, with more than 50 percent of enterprises in this sector having been established in the last three years alone. this is a great opportunity for the strengthening of an important social stratum in our country the middle class, which is evidenced by the fact that great opportunities are being created for the development of business entities. the open meeting of our resident with entrepreneurs on august 20, 2021 is a practical result of the development of entrepreneurial activity. in order to ensure the implementation of the tasks set out in this open meeting and simplify the mechanism for allocating loans within the framework of family entrepreneurship development programs, increase the employment of the population, expand sources of income, and support labor activity: decree of the president of the republic of uzbekistan no. рг55 “on the development of family entrepreneurship and expanding sources of income of the population” dated december 20, 2021 "on additional measures" was adopted. the following are determined in order to ensure the implementation of the tasks set out in the resolution, which can be considered as one of the important points for the development of entrepreneurial activity. positive trends in the banking sector of the republic of uzbekistan were observed in 2016. however, in 2023, state-owned banks will remain the main source of negative results of the national banking system in uzbekistan. the share of funds received from the government in commercial banks that own state assets is still considered high. the banking system of the republic of uzbekistan is characterized by the presence of high concentration. in particular, 84 percent of all bank assets still belong to stateowned banks, 64 percent belong to 5 large banks (milliu bank, asaka bank, uzsanoatqurilishbank, iroteka bank and agro bank). the ratio of state-owned deposits to loans of existing banks is 32.9 percent. for comparison, this indicator in private banks is 96 percent. table 1 distribution of credit agreements of commercial banks in the republic of uzbekistan by currency 2014 2015 2016 2017 2018 2019 2020 2021 2022 by volume, trillion soms allocated credits 34,5 42,7 53,4 110,6 167,4 210,1 275,3 326,4 390,1 currency exchange rate, trillion soms in national currency 21,04 28,94 30,56 41,74 44,13 110,4 138,6 163,7 204,1 in foreign currency 13,46 13,76 22,84 68,86 55,87 99,7 136,7 162,7 186,0 american journal of business management, economics and banking volume 31 december 2024 p a g e | 76 www.americanjournal.org if we analyze the credit policies issued by commercial banks in our country by currency, we can see that the increase in the volume of credits issued in the national currency, on the one hand, and the increase in the amount of preferential credits mainly due to funds under state programs, on the other hand, the level of income allocated to individuals can be observed in the form of an increase in the volume of consumer loans. in 2021, we can see that the balance of foreign currency loans in credit instruments increased by 17.8 percent compared to the previous year, and the balance of national currency loans increased by 18.1 percent (see table 1). if we look at international experience, the amount of credit facilities of commercial banks in the country, compared to the uam, constituted more than 190 percent in australia, 279 percent in the netherlands, 170 percent in great britain, and 150 percent in the usa. from this, the following conclusions can be drawn: while the loans allocated in our country are indeed wide-ranging and demand a lot of attention, an analysis of international experience shows that the level of credit provision today is not sufficient. conclusion and suggestions small and medium-sized enterprises (smes) make up the majority of businesses worldwide, creating new jobs and contributing significantly to global economic growth. they account for nearly 90 percent of businesses worldwide and employ more than 50 percent of workers. in addition, formal smes contribute up to 40 percent of national income in developing countries. according to world bank estimates, by 2030, 600 million jobs are expected to be created by small and medium-sized enterprises, making the development of small and medium-sized enterprises a priority for developing countries around the world; today, developed banks in the world are paying great attention to small businesses, implementing credit policies and service processes for them in a separate manner, and expanding their services to this type of client in full cooperation. references 1. тавасиев а.м. «банковское дело» учебник для бакалавр. – м: издательство юрайт, 2016. – 647 с. 2. роуз п. «банковский менеджмент». пер. с англ. – москва, 1997. – 192 с. 3. усоскин в.м. «современный коммерческий банк: управление и операции». – москва: «вазар-ферро», 1994 г.-189 с. 4. ендовицкий д.а., бахтин к.в., ковтун д.в. «анализ кредитоспособности организации и группы компаний»: учебное пособие.м. : кнорус, 2016. 376 с. 5. фридмен м. «если бы деньги заговорили». перевод с англлийского, под редакцией. м.: дело, 1999. – с. 100 -117. 6. филина ф.н. «все виды кредитования». практическое пособие. – м.: «гроссмедиа, росбух», 2009. – 210 с. 7. жарковская е.п. банковское дело: учебник. 6-е издания, исправленное / москва: омега-л, 2008. – 480 с. 8. юдина и.н. (2013) банковская система в развивающихся экономиках: опыт становления, развития и кризисов. монография. м.: инфра-м. с. 29. /уudinа i.n. (2013) thе bаnking sуstеm in dеvеlорing есоnоmiеs: thе ехреriеnсе оf fоrmаtiоn, dеvеlорmеnt аnd сrisеs. mоnоgrарh. m.: infrа-m. 29 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 66 www.americanjournal.org the advantages of organizing the practice of initial public offering of shares boev bekzodjon jurakul ugli doctor of philosophy in economics, associate professor of the department of corporative finance and securities. tashkent state university of economics е-mail: bekzodbek_92@inbox.ru orcid: 0000-0003-0069-8739 a b s t r a c t k e y w o r d s the article analyzes the process of successful public offering (ipo, spo) of stocks by joint-stock companies operating in our country. additionally, the opinions of both foreign and domestic scholars who have conducted research on this topic, as well as the experiences of foreign countries, are considered to derive conclusions, modern approaches, and recommendations for improving the practice of public offering of stocks in our country. joint-stock company, public offering of stocks, stock, integration, private sector, investor, ipo, spo, securities market, investment attractiveness. introduction the development of financial infrastructure is necessary to develop the economy of our country further and further strengthen its integration with international markets. in this respect, the issue of improving the practices of public placement of shares (ipo, spo) by joint-stock companies is gaining relevance today. public placement of shares (ipo, spo) not only allows companies to attract financial resources but also increases transparency and competitiveness in the economy, attracting foreign investors. today, ipo and spo practices are being respected by joint-stock companies operating in our country, but based on the experiences of foreign countries, ipo and spo processes in our country are still at the initial stage, the limitation of the national capital market, insufficient information to investors, the inefficiency of the system of relations with investors after mass placement and low financial literacy among, spo) is becoming an obstacle to the full use of its capabilities. therefore, the consistent continuation of reforms related to the process of mass placement of shares (ipo, spo), further strengthening cooperation between the public and private sectors, the study of foreign experience, and the introduction into national practice occupy an important place in accelerating the integration of our economy into the global market. literature review a number of our foreign and local scientists have conducted research within the framework of the issue of attracting capital and further improving their activities by organizing the practice of mass placement american journal of business management, economics and banking volume 32 january 2025 p a g e | 67 www.americanjournal.org of shares by joint-stock companies. in particular, one of the foreign economists, p.p. lyuvutin, as a result of his research on the study of the process of initial public offerings, emphasized that the ipo process should be considered from three perspectives: from the perspective of the issuing company, investors and underwriter [1]. "u.s. scholar jay ritter has argued that the ipo process should focus on maximizing capital[2]. chinese economists thomas chemmanur, gang hu, and jiekun huang have noted that one of the important aspects of institutional investors' participation in ipo practices is underwriting activities, noting that institutional investors obtain important information about companies that have conducted ipos through underwriting activities in ipo practices, and also receive a large service fee for their participation [3]. hsin-yi huanga, min-hsien chiang, jia-hui linc, and yun lin studied 3 methods of public placement of shares (ipo), namely fixed prices (fixed-price), auction (auction), and bulk-billing (book-building) methods, to influence investor sales. auction (auction) and buk-building (book-building) methods have been claimed to increase the effectiveness of mass placement practices [4]. our local economists, s. elmirzayev and b. mamatov, in their research on the topic "issues of effective organization of public placement of shares", noted that in the case of the joint-stock companies operating in our country and organizing public placement of shares, quartz, kokand mechanical plant, jizzakh plastics, and uzauto motors, certain positive or negative experiences were obtained, but the opportunities that could be achieved through public placement of shares were not sufficiently used. in her research work on the topic "ways of effective organization of financial provision in corporate financial management", n.r.tursunova thoroughly studied the advantages and disadvantages of the ipo practice, as well as the stages of preparation and implementation of the ipo practice[6]. in his research work on “increasing capital flow through the stock market in uzbekistan”, a.alikulov noted that the book building method, widely used in world practice, is better than the rest of the fixed price method and auction method, which makes it possible to form the prices of securities in ipo processes based on the most optimal and specific requirements, facilitating the selection process of potential investors [7]. analysis and results following the growing demand for investments in our country in recent years, various ways of attracting them are used by many companies. including the method of increasing equity through the primary public placement of shares. through this method, the company offers the most fair assessment of the market value of its assets. it will be necessary for companies entering the stock exchange to meet high standards of financial and business data disclosure, as well as create investment attractiveness for potential investors. the successful implementation of the ipo practice directly depends on the correct development and implementation of the corporate financial strategy by joint-stock companies. the corporate strategy under the ipo requires the determination of a direct long-term preparedness plan. the main goal of long-term preparation is to increase the attractiveness of the investigation. this requires, based on achieving high profitability, the transition to regular dividends, the improvement of internal documents in terms of attractiveness (such as setting the amount of net profit directed to the dividend, the form of dividend payment, the upper limit of ownership of a share in the share capital). at the same time, it is also important to be able to convince the forecasts of growth in the profitability of shares at the expense of further increase in profitability by justifying the fact that the projects in american journal of business management, economics and banking volume 32 january 2025 p a g e | 68 www.americanjournal.org which the ipo proceeds are directed are promising. in national practice, we cannot say that enough attention is paid to this aspect. in certain cases, the decision to hold an ipo in the first quarter of the year is being made by the public administration authorities, and an ipo is being held on the eve of the end of the year. as a result, investment attractiveness issues are dramatically lowering the chance that the cause will achieve the expected capitalization. for public stock placement practices (ipos, spos) to be successful, they must be properly planned, carefully prepared, and organized in every possible way. thorough preparation will serve as a comprehensive basis for successful ipo and spo. once internal preparation is provided and agreed upon with the relevant partners, attention is paid to setting the price range of all-round shares, and with which exchange to select. setting an amount limit on the application of shares by one investor is also important in this process. it should also be noted at this point that the time of acceptance of applications should be determined based on the current state of the economy. the fact that the practices of mass placement of shares of quartz, the kokand mechanical plant, and uzauto motors joint stock companies were established in the winter is also one of the reasons for the low demand. because it is in the winter that it is in the conditions of a relative decrease in income of the population and an increase in costs the offer of shares to them does not give its result sufficiently. in the process of preparation of ipo by joint-stock companies, it is necessary to carry out such work as pre-planning and preparation, evaluation of ipo preparation, planning of ipo implementation, and in the process of conducting ipo, such works as going to the exchange, basing the project, implementing ipo, and after establishing the ipo practice, turning the organization into an open society, many companies prepare to work as an open society long before direct preparation for the ipo begins. pre-preparation is one of the main factors in achieving the desired result without failures and surprises in the process of implementing the project. such preparation allows appropriate action to be taken at the initial stage of the process and allows the elimination of identified deficiencies related to the structure or agreements of the organization, which allows the company to obtain the maximum benefit from the ipo. table 1. № 10 step naming work to be done 1 goal setting make sure and make a decision at this time that the ipo is the right choice for your company. 2 preparing information for investors preparing an “attractive reference for investors”. the ipo sheds light on the past success and future growth potential of the company you are planning and causes high valuation. 3 finding an ipo consultant make sure he has rich experience and strong knowledge. 4 choosing the right exchange make sure you are registered in the most optimal market for your company and strategy. 5 pass an ipo readiness test determine the systems and processes that need to be changed before starting the official ipo process. 6 drawing up a plan and schedule set the most favorable deadlines and consider attracting experienced professionals to increase the efficiency of activities, ensure business continuity. 7 elimination of disadvantages develop and implement a plan to adapt systems and processes to market requirements and standards. 8 choosing partners focus on the fact that your partners, from legal consultants to underwriters, have extensive experience with the capital market. 9 creating an investor relations department establish that this section is responsible for ensuring a positive relationship with investors and analysts. 10 preparation of financial statements make a transformation of financial statements based on the fact that most markets require data over the past three to four years. american journal of business management, economics and banking volume 32 january 2025 p a g e | 69 www.americanjournal.org set a goal in the process of preparing for an ipo by a joint-stock company, prepare information for investors, find an ipo consultant, correctly select an exchange, pass an ipo readiness test, draw up a plan and schedule, eliminate shortcomings, choose partners, create an investor relations department, it ensures that such processes as the preparation of financial statements and the work that must be carried out in each process are clearly defined and that the performance of these works is successful in the practice of mass placement carried out by the joint stock company. to date, the practice of primary open placement of shares (ipo) in our country has been given serious attention at the government level. in this case, the successful conduct of ipo transactions largely depends on the level of profitability of securities of joint-stock companies. we believe that these aspects in turn serve to ensure that the published share emissions, and ipo transactions, are successful. it is also advisable to make regular announcements about the ipo operations being organized in the media, and on the pages of the internet. when organizing ipo operations on international stock exchanges, it is recommended to also take into account the listing requirements and tax factors, using the services of financial and tax consultants. table 2. group line-up reviewing which companies are listed through the group and which companies are (and are not) included in the group. the resolution of these issues may depend on the structure of the transaction and tax planning financial data formation of financial information for the previous three years to participate in the issue prospectus. assessment of the compliance of the company's accounting policies with disclosure rules is mandatory for public companies, including segment reporting corporate management assessment of the organization of corporate governance, including the structure of the board of directors and committees, as well as the changes necessary to ensure compliance with the requirements of the public limited company. effectiveness of the financial function evaluation of systems operating in the company, including it systems, financial reporting and management information systems, budgeting and planning systems. risks and issues of compliance with regulatory and legal requirements assessment of existing systems, including a system for controlling the justification of funds received by a criminal way; a system of confidential information about violations; code of conduct of business; an internal audit system. choosing a stock exchange platform for an ipo analysis of the differences in the requirements of the primary ipo and the conduct of listing on exchanges in the early stages of the preparatory process under consideration. to determine the scope of potential issues related to the compliance of the company with the criteria for obtaining an ipo. typically, companies prepare to operate as a public limited company long before the ipo process begins. depending on the readiness of the company, the ipo process can take up to 4-12 months. preliminary preparation is one of the main factors of successful access to the stock exchange, which allows the company to carry out the ipo process smoothly and efficiently. the timing of the preparation and placement of securities in each market varies due to aspects of regulatory requirements. conclusion in general, paying attention to the above-mentioned aspects when organizing and conducting public placements of shares (ipo, spo) by joint-stock companies is of great importance in achieving the intended goal, namely, in the successful organization of public placements of shares and increasing income by turning the population into shareholders, in attracting cheap capital for business, in the effective conduct of privatization, and in the development of the stock market as an institution american journal of business management, economics and banking volume 32 january 2025 p a g e | 70 www.americanjournal.org competing with the credit market in financing the economy. since the success of public placements of shares requires serious preparation, work should be carried out on the basis of a long-term corporate strategy, and the level of readiness of joint-stock companies should be tested for ipo. as a result, joint-stock companies can successfully conduct public placements of shares (ipo, spo) and thereby attract a large amount of capital, achieve an increase in share prices, increase investment attractiveness, and form their international image. in addition, due to the high state share in joint-stock companies operating in our country, the profitability and market influence of joint-stock companies with state participation is high, the state share in the authorized capital of joint-stock companies with state participation is sold at the market price through the practice of spo, and the state share with high profitability by effectively organizing the next stages of privatization. existing joint-stock companies will be able to attract more financial resources from the capital market by using the spo mechanism. references: 1. льювутин, п.п. о.в. фетцер первичные публичные размещения акций: обзор исследований/ п.п. льювутин, о.в фетцер //журнал корпоративные финансы – 2007. №1. 2. welch i., ritter j. a review of ipo activity, pricing and allocations, yale icf working paper, #02-11, 8.02.2002. 3. thomas chemmanur, gang hu, jiekun huang. the role of institutional investors in initial public offerings. // the review of financial studies, november 2010. – p.46. 4. hsin-yi huanga, min-hsien chiang, jia-hui linc, yun lin. fixed-price, auction, and bookbuilding ipos: empirical evidence in taiwan. // finance research letters 22 (2017) 11-19. 5. s.elmirzayev, b.mamatov. issues of effective organization of public placement of shares. // “finance and banking” scientific journal of the banking and finance academy of the republic of uzbekistan. no. 4, 2022. – p.105-110. 6. n. tursunova: abstract of the dissertation submitted for the degree of doctor of philosophy (phd) in economics on the topic "ways of effective organization of financial support in corporate finance management": t.: 2019. 7. a alikulov: abstract of the dissertation submitted for the degree of doctor of philosophy (phd) in economics on the topic "increasing capital flow through the stock market in uzbekistan": t.: 2021. 8. https://www.pwc.ru/en/capital-markets/assets/roadmap-for-an-ipo-rus.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 80 www.americanjournal.org issues of developing "green" finance in uzbekistan dsc abdurakhimova dilora karimovna tashkent state university of economics e-mail: abdurahimovadilora10@gmail.com a b s t r a c t k e y w o r d s the article analyzes the problems and prospects for the development of "green" financing in uzbekistan, which is an important tool for sustainable economic growth and environmental protection. in the context of global environmental challenges and uzbekistan's desire to modernize its economy, the introduction of green financial mechanisms is becoming a key factor in achieving sustainable development. the article discusses the main problems the country faces in introducing green financing, such as insufficient institutional support, limited knowledge and experience in the field of ecology and financing of "green" projects, as well as the need to change legislative and regulatory mechanisms. green finance; sustainable development; esg; green budgeting; green financial instruments; climate risks; financial market; payments for natural resources. introduction in recent decades, the problems of sustainable development and environmental protection have become some of the most pressing at the global level. in response to these challenges, new areas have emerged in the financial sector aimed at supporting environmentally friendly and sustainable projects. one of these areas is “green” finance, which is aimed at attracting investment in projects that help reduce the carbon footprint and protect nature. in uzbekistan, which is actively striving to modernize its economy and improve the environmental situation, the development of green financing is an important element of the transition to sustainable economic growth. green financing in uzbekistan is not only a step towards solving environmental problems, but also a way to increase the country's investment attractiveness, integrate into international environmental standards and create new jobs in green sectors. despite the growing interest in this topic, the process of developing green financing faces a number of challenges associated with the insufficient maturity of relevant institutions, limited experience in implementing "green" projects and the need to change legislation. this article examines the main problems and prospects for the development of green financing in uzbekistan, as well as the role it can play in the sustainable development of the country. american journal of business management, economics and banking volume 30 november 2024 p a g e | 81 www.americanjournal.org 2. literature review the green economy can be divided into the following types: 1) renewable energy sources (solar, wind, biofuels, etc.); 2) "green" buildings and structures (active and passive houses) (energy-saving technologies in construction and architecture); 3) clean transport (alternative fuels, development of public transport, hybrid/electric vehicles); 4) water resources management (water purification, water conservation, rainwater harvesting, etc.); 5) waste and industrial waste disposal (reuse (recycling), production of biodegradable containers, etc.); the "green" quality in the united nations environment programme (unep) concept of sustainable development refers to everything related to the sustainable development of the environment.1 the european commission, in its report examining the meaning of the concept of “green” in the context of “green” finance, identified the following tools for its formulation in official documents2: 1. objectives. the main approach to defining a “green” direction is to define the outcomes for which an activity should be considered “green” (e.g. climate change mitigation, sustainability, pollution prevention, etc.). subsequently, whether a particular investment contributes to achieving such objectives is assessed individually. 2. taxonomy. green taxonomies are classifications of areas and investments (technologies, sectors, etc.) that are considered green. taxonomies can have different levels, each level serving to describe in more detail the elements that make up the higher category. 3. exclusion criteria. the definition of “green” is used to exclude certain sectors, companies, activities, etc. often, specific technologies, such as nuclear energy, set exclusion criteria. other forms of exclusion may be based on norms (i.e. excluding all investments that do not comply with existing norms and standards). 4. indicators. these are values used to indicate the impact or impact of an activity on the environment (energy/water savings, reduction of greenhouse gas emissions, etc. indicators may be set with thresholds or minimum acceptable levels of performance and/or target values). indicators that reflect a desired level of performance may provide a retrospective or prospective measure of performance (e.g. measuring total water consumption). 5. ratings. allows for the assessment of the “greenness” of a company, technology or financial product according to predefined criteria3. the organization for economic cooperation and development links green finance and investment to green development, which means achieving economic growth while reducing pollution and greenhouse gas emissions, minimizing waste, and increasing the efficiency of natural resource use4. the g20 green finance study group (gfsg) considers that green finance can be understood as financing investments that deliver environmental benefits in the broad sense of environmentally sustainable development. these environmental benefits include, for example, reduced air, water and 1 united nations environment programme (september 2016). inquiry: design of a sustainable financial system. definitions and concepts: background note // url: https://wedocs.unep.org/bitstream/ handle/20.500.11822/10603/definitions_concept.pdf?sequence=1&isallowed=y (дата обращения: 10.10.2021). 2 european commission (october 2017). defining «green» in the context of green finance : final report // url: https://ec.europa.eu/environment/enveco/sustainable_finance/pdf/studies/defining%20green%20 in%20green%20finance%20%20final%20report%20published%20on%20eu%20website.pdf (дата обращения: 10.10.2021). 3 european commission (october 2017). defining «green» in the context of green finance. p. 25–26. 4 green finance and investment // url: https://www.oecd-ilibrary.org/environment/green-finance-andinvestment_24090344 (дата обращения: 10.10.2021). american journal of business management, economics and banking volume 30 november 2024 p a g e | 82 www.americanjournal.org land pollution, reduced greenhouse gas emissions, increased energy efficiency in the use of existing natural resources, climate change mitigation and adaptation, and related benefits5. this group argues that “green” finance includes efforts to internalize environmental externalities and change risk perceptions to increase environmentally friendly investments and reduce environmentally harmful investments6. they also consider that green finance encompasses a wide range of financial institutions and asset classes, and includes both public and private finance7. based on the definitions of this group, “green” finance can be viewed as a process aimed at effectively financing projects in order to effectively manage environmental risks in the financial system. table 1. classification of “green” financial instruments no. classification of "green" instruments types of "green" financial instruments 1. retail finance: − “green” mortgage; − “green” loan secured by housing; − “green” loan for commercial construction; − “green” loan; − “green” credit cards. 2. investment financing: − “green” project financing; − “green” asset securitization; − “green” venture capital and private equity funds; − technology leasing; − carbon finance 3. asset management: − carbon and environmental funds; − hedge funds; − catastrophic bonds; − environmental etfs. 4. environmental insurance: − car insurance; − carbon insurance; − emergency insurance; − green insurance green bonds are fixed-income financial instruments issued to finance and develop green projects in various sectors such as renewable energy, clean transportation, waste and water management. materials and methods the article uses scientific abstraction, descriptive statistics, expert assessment, grouping, dynamic analysis, and comparison methods. the article analyzes official data and statistical information and 5 g20 green finance synthesis report (july 2016). p. 3 // url: http://www.g20.utoronto.ca/2016/green-financesynthesis.pdf (дата обращения: 10.10.2021). 6 g20 green finance synthesis report (july 2016). p. 3 // url: http://www.g20.utoronto.ca/2016/green-financesynthesis.pdf (дата обращения: 10.10.2021). 7 g20 green finance synthesis report (july 2016). p. 3 // url: http://www.g20.utoronto.ca/2016/green-financesynthesis.pdf (дата обращения: 10.10.2021). american journal of business management, economics and banking volume 30 november 2024 p a g e | 83 www.americanjournal.org research results from international companies such as statista, mckinsey, globaldata, forbes, microsoft, ibm, and techopedia. results in recent years, increased awareness of the risks and challenges associated with climate change has changed the way we think about investing. new investment standards, such as esg investing, have led to an increase in financial instruments and transparency mechanisms in the financial sector to attract more investment in sustainable and green projects. the green finance movement has been gaining popularity in recent years, with investors interested in making their portfolios more sustainable. green bond issuance has grown exponentially over the past decade. figure 1. green bond issuance volume in 2021 and 2023, billion us dollars. according to data provided by bloomberg, green bond issuance is expected to exceed one trillion dollars in 2023. this increase is due to record sales of green bonds. the issuance of impact bonds (i.e. green, social, sustainable and related to sustainability) amounted to $939 billion in 2023, which is 3% more than the previous year in figure 1. this is not a record, as issuance in 2021 reached $1.1 trillion. one of the areas that set a record in 2023 was the sale of green bonds by corporations and governments, which rose to $575 billion, slightly more than the $573 billion in 2021. the largest green bond sale of the year was carried out by the italian government in april, for a total value of €10 billion. the largest issuers selling impact bonds were governments. other european government issuers of green bonds include france, germany, ireland, the netherlands and the united kingdom. through 2023, governments issued green bonds worth a total of $190 billion. 1100 573 939 575 0 200 400 600 800 1000 1200 government green bonds impact bonds 2022 2021 american journal of business management, economics and banking volume 30 november 2024 p a g e | 84 www.americanjournal.org table 2 ranking of green bond issuers in developed markets by the end of 2023 no issuer volume, million usd emission volume share, % 1 great britain 24 500,63 2,00 6,65 2 german 18 231,26 3,00 4,95 3 kfw 13 858,65 14,00 3,76 4 european investment bank (eib) 13 683,79 12,00 3,71 5 franсе 10 696,43 3,00 2,90 6 netherlands 10 538,23 1,00 2,86 7 austria 6 584,25 1,00 1,79 8 engie 6 061,90 6,00 1,64 9 intesa sanpaolo 5 639,40 5,00 1,53 10 dnb bank asa 4 192,91 5,00 1,14 table 2 shows that social bond sales in 2023 amounted to $135 billion last year. this is slightly down from the record $220 billion in social bonds issued during the pandemic in 2021. the largest issue was green bonds issued by the uk government, accounting for nearly 7 percent of the total (usd 24,500.63 million). the largest green bond issue of the year was issued by the german government, accounting for nearly 5 percent (usd 18,231.26 million), and the largest social bond of the year was issued by the french government’s la caisse d’amortissement de la dette sociale (cades) for €5 billion. conclusion the following recommendations can be made for the development of green finance in uzbekistan: 1. creation of specialized financial institutions specializing in the provision of green financial services and products. 2. conducting campaigns to inform the public about the benefits of green finance and stimulate demand for such products. 3. development and implementation of tax incentives for enterprises investing in environmental modernization projects. 4. support and encourage innovative green projects through state subsidies or grants. 5. development of standards and rules for assessing green projects and their sustainability. 6. creation of mechanisms for financing energy-efficient technologies and sustainable development. 7. involvement of international financial institutions and organizations in the development of green finance in uzbekistan. these recommendations can contribute to the development of green finance and help the country use resources more efficiently. references 1. european commission (october 2017). defining «green» in the context of green finance: final report//url:https://ec.europa.eu/environment/enveco/sustainable_finance/pdf/studies/defining %20green%20in%20green%20finance%20%20final%20report%20published%20on%20eu%20 website.pdf american journal of business management, economics and banking volume 30 november 2024 p a g e | 85 www.americanjournal.org 2. g20 green finance synthesis report (july 2016). p.3//url: http://www.g20.utoronto.ca/2016/green-financesynthesis.pdf 3. green finance and investment//url: https://www.oecd-ilibrary.org/environment/green-financeandinvestment_24090344 4. united nations environment programme (september 2016). inquiry: design of a sustainable financial system. definitions and concepts: background note//url: https://wedocs.unep.org/bitstream/ handle/20.500.11822/10603/definitions_concept.pdf?sequence=1&isallowed=y 5. www.bloomberg.com official website of bloomberg. https://www.bloomberg.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 113 www.americanjournal.org statistical assessment of the confidence interval of the average profit obtained in a month based on surveys to‘raeva zilola turg‘unovna "senior lecturer of the department of economic statistics" tashkent state university of economics a b s t r a c t k e y w o r d s the article discusses the issues of collecting and processing statistical data for statistical evaluation based on surveys regarding the confidence interval of the average profit of industrial enterprises over a month. industrial enterprises, confidence interval, questionnaire, respondents, export, import, statistical assessment. introduction the decree no. pd-158 of the president of the republic of uzbekistan dated september 11, 2023, regarding the "uzbekistan 2030" strategy states: "to develop the 'driver' sectors of industry and fully utilize the industrial potential of regions, the goals to be achieved by 2030 include, among others, increasing the volume of added value in industry to 45 billion dollars and creating 2.5 million highincome jobs, producing import-substituting products by large enterprises and expanding cooperation with regional enterprises, implementing an active incentive system for enterprises that establish industrial cooperation, creating modern technological industrial zones in every district, conducting geological exploration works in an area of 60,000 square kilometers, achieving a 100 percent level of reprocessing yarn in the textile industry and establishing the production of 400,000 tons of synthetic and blended fabrics to meet the demand for high-quality textiles, increasing the volume of construction materials production by twofold, expanding the production of new types of energy-efficient materials, covering 70 percent of the need for pharmaceutical products through domestic manufacturers, increasing the added value by attracting more than 30 prestigious foreign brands in the leather and footwear industry, and enhancing the production of furniture." methodology statistical observation, grouping methods, absolute, relative, and average quantities, and graphical methods were used. american journal of business management, economics and banking volume 37 june2025 p a g e | 114 www.americanjournal.org results in the context of transitioning to market relations, the development of a precise and scientifically grounded regional policy and its practical implementation play a crucial role in demonstrating the efficient functioning of the economy of the republic of uzbekistan and in the appropriate utilization of existing resources. the industrial sector is considered a production branch that encompasses the processing of raw materials, the extraction of underground resources, the production of means of production, and the creation of consumer goods. for this reason, "the producers of official statistics adhere to concepts, classifications, and methodologies that are internationally recommended in the processing of statistical data." b c d e 55,2 67,8 553,3 753,6 44,3 59,9 3 4,50 200 400 600 800 2023 year 2024 year b mining and quarrying c manufacturing d electricity, gas, steam and air conditioning supply e water supply; sewerage, waste management and remediation activities figure 1. industrial production by types of economic activity in the republic of uzbekistan in 2023–2024 (in trillion soums) in 2023, our republic's enterprises produced industrial products worth 655.8 trillion soums, with the physical volume index of industrial production reaching 106.0% compared to 2022. the physical volume index of industrial production is a relative indicator that describes the change in the volume of produced goods (works, services) during comparable periods. currently, "there are 69,400 industrial enterprises operating in our republic, of which 11,800 (17.0% of the total registered enterprises) are located in tashkent city, 7,800 (11.2%) in fergana region, 7,300 (10.5%) in tashkent region, 6,200 (8.9%) in samarkand region, and 5,500 (7.9%) in andijan region." in 2024, the largest share of industrial production will come from the industrial sector, accounting for 753.6 trillion soums, which constitutes 85.1% of total industrial production. the main factor in the decline of the total industrial production physical volume is observed in the mining industry and the processing of non-metallic minerals, with a decrease of 1.9%, and in water supply, canalization systems, waste collection, and utilization, with a decrease of 5.5%. additionally, there has been a 7.7% decline in the production (reprocessing) industry, as well as increases of 5.5% in the supply of electricity, gas, steam, and air conditioning. the manufacturing sector accounts for the largest share of industrial production, contributing 553.3 trillion soums, which constitutes 84.4% of total industrial output. (figure 1) regional factors influence the character and direction of economic reforms being implemented in our country, the rates and ratios of production factors' development, and the acceleration of structural changes in the economy. the analysis of regional development issues in the light industry sector, american journal of business management, economics and banking volume 37 june2025 p a g e | 115 www.americanjournal.org which defines national economic development, and the development of light industry from a regional perspective involves scientifically based proposals and practical recommendations that are considered priority tasks in the context of economic liberalization. analysis when we refer to the rational organization of industrial production from a regional perspective, it means taking into account the characteristics of the market economy, modern trends in global agricultural development, and the interests of the country and regional entities. this involves assessing the regional labor distribution opportunities for industrial production, the natural and economic potential of the regions, and effectively utilizing economic relations among the regions to fully meet the population's needs for industrial products and ensure the socio-economic efficiency of light industry production in the region. figure 2. the share of profits earned by industrial enterprises operating in the republic of uzbekistan (as a percentage), as of may 1, 2025 in the conducted surveys, among 207 respondents from industrial enterprises operating in the republic of uzbekistan, 28 (13.5%) do not benefit, 42 (20.3%) benefit from 0-20 million soums, 31 (15.0%) benefit from 20-40 million soums, 35 (16.9%) benefit from 40-60 million soums, 21 (10.1%) benefit from 60-80 million soums, 19 (9.2%) benefit from 80-100 million soums, and 31 (15%) benefit from more than 100 million soums, indicating the presence of industrial enterprises in these categories (see figure 2). to study the benefits obtained by industrial enterprises operating in the republic of uzbekistan, observations were conducted on a random sample of 207 out of 112,490 industrial enterprises, and the following data was obtained. american journal of business management, economics and banking volume 37 june2025 p a g e | 116 www.americanjournal.org 1-table groups of industrial enterprises operating in the republic of uzbekistan by monthly profit in the sample survey groups of industrial enterprises operating in the republic of uzbekistan by the amount of profit received, mln uzs number of industrial enterprises, units (𝑓𝑖) class midpoint, (xᵢ) 𝑥𝑖𝑓𝑖 𝑥𝑖 − �̃� (𝑥𝑖 − �̃�)2 (𝑥𝑖 − �̃�)2𝑓𝑖 0-20 70 10 700 -38,16 1456,186 101932,992 20-40 31 30 930 -18,16 329,7856 10223,3536 40-60 35 50 1750 1,84 3,3856 118,496 60-80 21 70 1470 21,84 476,9856 10016,6976 80-100 19 90 1710 41,84 1750,586 33261,1264 over 100 31 110 3410 61,84 3824,186 118549,754 total n=207 x=48,16 9970 274102,419 а) 0,997 we determine the confidence interval for the average monthly profit of industrial enterprises based on probabilitysаnоаt kоrxоnаlаrining bir oyda оlgаn о’rtасhа fоydаsi amounts to 48.16 million uzs: �̄� = ∑ 𝑥 𝑓 ∑ 𝑓 = 9970 207 = 48,16 mln sum. the variance of the sample data set amounts to 1,324.2 million uzs. 𝜎2 = ∑(𝑥 − �̄�)2𝑓 ∑𝑓 = 274102,419 207 = 1324,2 𝑚𝑙𝑛. 𝑠𝑢𝑚 given that the confidence level r = 0.997, the corresponding t-value is 3. the standard error of the sample is 7.58 million uzs .∆�̃�= 𝑡 ∗ 𝜇�̃� = √ 𝜎2 𝑛 (1 − 𝑛 𝑁 ) = √1324,2 207 (1 − 207 112490 ) = 3√ 6,4 ∗ 0,9982 = 7,58 the confidence interval for the population mean is expected to lie within the range of 25.42 million to 70.9 million soums. �̃� − 𝛥𝑥 ≤ �̄� ≤ �̃� + 𝛥𝑥 , 48,16 − 7,58 ≤ �̄� ≤ 48,16 + 7,58 26.84 − 5,29 ≤ 26,84 ≤ 26,84 + 5,29 40,58 ≤ �̄� ≤ 55,74. therefore, at a confidence level of 0.860, the average profit of industrial enterprises is expected to lie between 40.58 million and 55.74 million uzs. b) 0,954 the confidence interval is determined for the share of industrial enterprises in the republic of uzbekistan with a profit level exceeding 60 million soums r=w  w in this case w = m/n =71/207 = 0,343 yоki 34,3 % american journal of business management, economics and banking volume 37 june2025 p a g e | 117 www.americanjournal.org it is known that when the probability r = 0.954, the confidence coefficient t is equal to 2. 𝛥𝑤 = 𝒕 ∗ 𝝁𝒘 = 𝒕√ 𝒘(𝟏−𝒘) 𝒏 (𝟏 − 𝒏 𝑵 ) = 𝟐√ 𝟎,𝟑𝟒𝟑(𝟏−𝟎,𝟑𝟒𝟑) 𝟐𝟎𝟕 (𝟏 − 𝟐𝟎𝟕 𝟏𝟏𝟐𝟒𝟗𝟎 ) = 2√0,00109 ∗ 0,9982 =0,06 yоki 6 % 0.343 0,06  0,343  0,343 + 0,06 0,283  0,343  0,403 28,3%  34,3%  40,3% thus, it is possible to emphasize with certainty that the profitability level of industrial enterprises operating in the republic of uzbekistan varies between 28.3% and 40.3%. (table 1). currently, the modernization of production and the implementation of technical and technological reequipment measures are being carried out on a large scale across almost all sectors and industries of our republic's economy, expanding the opportunities for producing competitive products. however, a serious problem in this regard is that the high level of product prices negatively affects their competitiveness. therefore, in the decree of the president of the republic of uzbekistan titled "measures to support enterprises in the real sector of the economy, ensure their sustainable operation, and enhance export potential" (decree no. 4058 dated november 28, 2008), it was also stipulated to ensure the competitiveness of local manufacturing enterprises by reducing product prices to levels not exceeding 20% of the cost through the efficient use of all resources. conclusions and recommendations in the republic of uzbekistan, industrial enterprises must have the capacity to operate independently by forming mechanisms of a market economy. statistical studies indicate that the majority of today's industrial enterprises have limited knowledge and skills, which results in a moderate level of profitability. -the state influences the development and coordination of regional industry through the following factors: -construction of infrastructure facilities serving industrial enterprises with the involvement of public funds; -allocation of part of capital investments from the budget to reduce the expenses of private investors; -participation in the construction of industrial enterprises; -provision of concessional loans for the construction of industrial enterprises; -introduction of tax benefits; -training of qualified personnel for new industrial enterprises at the expense of the state budget; -provision of privileges and incentives for the construction of industrial enterprises in economically underdeveloped regions; -restriction or prohibition of industrial construction based on ecological conditions, etc. in conclusion, our country possesses sufficient resources and reserves for the development of industry and for it to become a leading sector of the national economy. in this regard, rapidly growing sectors such as the fuel and energy complex, chemical industry, food industry, pharmaceuticals, pulp and paper industry, as well as ferrous and non-ferrous metallurgy, mechanical engineering, and automotive industry, are making a significant contribution to strengthening uzbekistan’s position in the global market. american journal of business management, economics and banking volume 37 june2025 p a g e | 118 www.americanjournal.org in particular, since gaining independence, our republic has successfully implemented economic and structural policies aimed at transforming from an agrarian country into a freely industrially developed state. references 1. o‘zbekiston respublikasi prezidentining 2023-yil 11-sentabrdagi “o‘zbekiston — 2030” strategiyasi to‘g‘risida” gi pf-158-sonli farmoni. https://lex.uz/uz/docs/-6600413 2. o‘zbekiston respublikasining “rasmiy statistika to‘g‘risida” gi o‘rq 707 – sonli qonuni. 2021 yil. 11 avgust. . www.lex.uz 3 www.stat.uz. o‘zbekiston respublikasi prezidenti huzuridagi statistika agentligi ma’lumotlari asosida tuzilgan http://www.lex.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 11 www.americanjournal.org strategies in the field of energy consumption and energy efficiency improvement of the republic of uzbekistan khamdamova gavhar absamatovna, candidate of economics, professor, tashkent state university of economics, gavkharxamdamova@gmail.com orcid: 0000-0002-0690-6845 a b s t r a c t k e y w o r d s this article analyzes the aspects of systematization and implementation of strategies in the energy sector and improvement of energy efficiency in the republic. effective energy security is achieved through the implementation of a deliberate strategy in this area, which covers government actions aimed at supporting national economic stability and security in the energy sector. the article also presents statistical data that provide an opportunity for a neutral analysis of the current state of the industry. energy, energy efficiency, strategy, energy security, energy policy, modernization, concept. introduction the xxi century is marked by the intensive development of globalization, covering all corners of the world and affecting the sovereignty of states and their borders, as well as diversity in political and economic relations in the international arena. in this context, guaranteeing national energy security is becoming a priority for countries and regions. experience shows that the effective provision of energy security largely depends on the implementation of a high-quality energy strategy, which involves a set of government measures aimed at maintaining economic well-being and energy stability. the main goal of such a policy is the optimal use of energy resources and the potential of the industry for dynamic economic development, improving the living standards of citizens and strengthening the international status of the country. methodology the research work was based on scientific publications by russian and foreign authors concerning the classification of energy policy and energy efficiency, as well as legislative and other regulatory documents. data from scientific and practical events organized on this topic also played an important role in the formation of the methodological base. a systematic approach and methods of logical, comparative, and statistical analysis were used to analyze and solve research issues. american journal of business management, economics and banking volume 25 june 2024 p a g e | 12 www.americanjournal.org result and discussion a study of international experience in the field of government regulation confirms that energy conservation and energy efficiency improvement are key strategic directions for many countries. these areas activate the introduction of advanced innovative technologies and equipment in the national economy. the experience of other countries shows that the combination of energy-saving measures with innovative activity leads to much more significant effects than their independent application. this highlights the need to integrate energy efficiency policies with innovative development processes, thereby creating the basis for technological renewal in industry and focusing on the use of efficient energy-saving solutions. the key documents serve as the basis for the development of the uzbek energy industry: the “strategy for the development of the “green” economy of uzbekistan for 2019-2030” and the “concept of uzbekistan's electricity supply for 2020-2030”. the goal of the strategy is to ensure the country's longterm economic growth in accordance with the paris climate agreement, to which uzbekistan joined in 2018. the objective of the concept is to respond to the increasing demand for electricity, the deficit of which reached 9.4% in the period from 2012 to 2019, and consumption is projected to grow by 67% annually until 2030, while ensuring the sustainable development of the country's energy sector. [1] the main task of the outlined roadmap is to support the government of uzbekistan in fulfilling the obligations assumed under the paris agreement. the document confirms the technical and economic feasibility of uzbekistan's transition to a completely carbon-free energy sector by 2050. analytical data indicate the need to invest about $94 billion to transform the energy industry towards the complete elimination of greenhouse gas emissions by 2050. in general, the roadmap outlines the specific steps required to achieve the set goals by the middle of the century. [4] the regulatory framework related to energy efficiency is fixed in the law on the efficient use of energy resources, which was approved in 1997. the main task of this legislative act is to form the basic legal framework for the protection and rational use of the country's energy reserves, optimize energy consumption and stimulate industrial development. in 2020, the law underwent updates, including the creation of the ministry of energy as a body specializing in the implementation of energy efficiency policies. as of january 1, 2021, the following main energy efficiency programs and initiatives are being implemented in uzbekistan: 1.the program for promoting renewable energy and improving energy efficiency in the economy and social sphere for the period from 2017 to 2021. the main objective of this program is to reduce energy consumption by 8-10% annually. 2. a roadmap for further increasing energy efficiency in various sectors of the economy and the social sphere, as well as stimulating the development of renewable energy sources. this initiative includes the implementation of 36 activities, of which 21 are aimed at improving energy efficiency.[5] 3. the roadmap for improving energy efficiency and saving fuel and energy resources at large energyintensive enterprises in various sectors of the economy. within the framework of this program, 29 measures are being implemented aimed at improving energy efficiency in energy-intensive sectors. 4. a comprehensive program of digitalization of the electric power industry for the period from 2019 to 2021. american journal of business management, economics and banking volume 25 june 2024 p a g e | 13 www.americanjournal.org there are several interested organizations in the institutional field of energy efficiency. the ministry of energy plays an important role in promoting energy efficiency policies, but there is some overlap with other government agencies in the industrial and construction sectors. in september 2018, the parliament of uzbekistan decided to ratify the paris agreement and voluntarily committed itself to reducing specific greenhouse gas emissions by 10% by 2030 compared to the level of 2010. to this end, uzbekistan submitted its first nationally determined contribution (ndc) to the united nations framework convention on climate change. in october 2021, uzbekistan updated its initial ndc, increasing commitments to reduce specific greenhouse gas emissions by 35% by 2030. the center of the hydrometeorological service has been appointed the main state body responsible for coordinating the implementation of international obligations under the paris agreement. [5] the legislative fund of the republic of uzbekistan related to environmental protection needs to be updated, since the main act in this area is the law “on nature protection”, approved in 1992. in response, in 2018, the uzbek government approved 16 national sustainable development goals and 127 targets,[5] which should be completed by 2030, following the un global agenda for 2030. in the context of climate initiatives, specific initiatives have been identified to combat climate change at the country level. renewable energy policy due to its geographical location and diverse landscapes, uzbekistan has great potential in the field of renewable energy. the highest technical potential (conservative values) belongs to solar energy (176.8 gw), but the country also has good potential for biomass energy (2.9 gw), hydropower (0.4 gw), wind energy (0.4 gw) and geothermal energy (0.3 gw). the existing renewable energy targets relate only to the electricity sector and do not affect the heating, cooling or transport sectors in any way. the strategy of innovative development of the republic of uzbekistan for 2019-2021 provides for the achievement of a 20% share of electricity production from renewable sources by 2025, while the resolution on accelerated measures to improve the energy efficiency of economic and social sectors, the introduction of energy–saving technologies and the development of renewable energy sources provides for the achievement of a 25% share of renewable energy in electricity generation by 2030.[2] the intention is to achieve these goals through the construction of new renewable energy power plants with a total capacity of 10 gw, including solar (5 gw), wind (3 gw) and hydroelectric power plants (1.9 gw). the legislative base of the republic of uzbekistan in the field of renewable energy consists of the law "on the use of renewable energy sources", adopted in 2019. the law provides for a number of financial incentives and benefits, including exemption of renewable energy producers from all types of taxes for up to five years, starting from the date of their state registration. in addition, according to the program of measures for the further development of renewable energy, energy efficiency improvement in economic and social sectors for 2017-2021, all consumers installing generating capacities receive a guaranteed “green” tariff based on official electricity prices for commercial consumers. in addition to the above, in 2021-2022, tenders and auctions for the development of renewable energy are planned in uzbekistan in accordance with the build– own–operate model together with international financial organizations (mfos) and the conclusion of long-term (up to 25 years) contracts for the purchase and sale of electricity. thus, the modernization, diversification and improvement of energy efficiency of the industrial sector is one of the priorities of the government to create jobs and improve living standards in uzbekistan. american journal of business management, economics and banking volume 25 june 2024 p a g e | 14 www.americanjournal.org according to the study, the greatest potential for improving energy efficiency in the electric power industry is associated with such measures as: -replacement of outdated thermal power plants and conventional boilers with high–efficiency combined cycle steam and gas turbines (pgt) 0.922 million tons of oil per year; -reduction of electricity losses – 0.165 million tons per year; -reduction of own use by the energy sector – 0.058 million tons of oil per year. according to an assessment carried out within the framework of the undp and the ministry of economy project “support for uzbekistan in the transition to the path of low-carbon development of the national economy”, potential savings in the electricity sector will amount to 8.3 million tons of n.e., or 11 billion m3 of natural gas per year. the study emphasizes that only the commissioning of highefficiency pgts can reduce the specific energy consumption from 0.275 to 0.175 tons n.e./mwh. additional savings of 2.63 million tons. e., or 3.23 billion m3 of natural gas per year, can be achieved through the construction of cogeneration plants at energy-intensive industrial enterprises in the carec study on the energy sector financing roadmap, the potential energy savings in the electric power sector by 2030 are estimated at 6.85 million tons n.e. the calculation takes into account an increase in the average efficiency of gas-fired thermal power plants, which was about 33% in 2013, and a reduction in technical and commercial losses, which accounted for 23% of net admission to the network in the same year. the study also suggests that total energy savings could reach 25% in the next 15 years, although the analysis did not specify an exact baseline for such a forecast. the latest report on the results of a comparative analysis of electricity losses published by the council of european energy regulators (ceer) in 2020 also explains the lack of a consistent definition of electricity losses, especially with regard to non-technical losses, and the lack of consistency in the representation of losses as a percentage of energy entering or leaving the grid. for example, while the ceer report compares electricity losses in 35 countries as a percentage of revenue, the world bank estimates this figure as a percentage of useful output. thus, only reducing electricity losses to the global average could be the most cost-effective measure to eliminate the shortage of electricity supply, which the government estimated at an average of 9.4% of demand in 2012-2019. the main reason for such a high level of electricity losses is the outdated elements of the main and distribution networks. according to the ministry of energy, 66% of the main networks and 74% of substations have a service life of more than 30 years. the service life of 62% of distribution networks and more than 50% of transformer stations has also exceeded 30 years. taking into account data on own consumption at thermal power plants and chp plants, in 2019 the net efficiency of coal–fired power plants was 24.7%, and gas-fired power plants 31.9%. the european bank for reconstruction and development indicates that the net electrical efficiency of the new 1.56 gw power plant, which will be built by siemens in surkhandarya region by 2024, will be above 60%. presidential decree no. pp-4779 dated 07/10/2020 provides for planned fuel and energy saving in the amount of 1.859 million tons of energy efficiency, which is a mandatory energy efficiency target to be achieved in the electricity generation subsector by january 1, 2023. in accordance with the approved target parameters of fuel and energy saving, the relevant ministries and departments in the context of enterprises have developed and approved organizational and technical measures to save fuel and energy resources for 2020-2022 with justifying calculations of savings for each event. within the framework of the strategy of the republic of uzbekistan to provide the population and industry with electricity for the period 2020-2030, which was officially approved by the decision of american journal of business management, economics and banking volume 25 june 2024 p a g e | 15 www.americanjournal.org the ministry of energy no. 70 dated april 28, 2020, specific tasks have been identified to reduce electricity losses. this includes reducing losses in high-voltage transmission lines from 2.72% to 2.35% and in distribution networks from 12.47% to 6.7% of the total energy supply by 2030. however, there are no similar regulations in the existing legislation of uzbekistan regarding the reduction of natural gas losses for operators of transmission systems (tso) and gas distribution (dso). in uzbekistan, the problems of climate change and environmental conservation are particularly acute, which is largely due to the environmental tragedy of the gradual disappearance of the aral sea. according to the information provided by the un, the main factor contributing to this process is the active development of the agricultural sector and the creation of extensive irrigation systems on the rivers feeding the sea. in september 2018, the uzbek parliament approved the paris climate agreement, committing to reduce the intensity of greenhouse gas emissions by 10% by 2030 compared to 2010, relative to gross domestic product. as part of these efforts, uzbekistan has made its first nationally determined contribution (ndc) to the un framework convention on climate change. in october 2021, uzbekistan revised its initial targets set in the ndc and raised the bar for reducing greenhouse gas emissions per unit of gdp from 10% in 2010 to 35% by 2030. in order to fulfill the paris agreement and international obligations in the field of climate, uzbekistan has identified a national coordinator the center of the hydrometeorological service, a key state body in this area. the country's current legislative framework for environmental protection, based on the 1992 law on nature protection, needs to be updated. in 2018, within the framework of the un global initiatives on sustainable development, the government set 16 national goals and 127 related tasks aimed at achieving sustainable development by 2030. these goals include specific measures to combat climate change at the country level. to support these initiatives, uzbekistan is actively working with international financial institutions and foreign state financial organizations, aiming to improve the legislative framework and obtain financing for projects that increase energy efficiency and develop renewable energy sources. international financial institutions, including the world bank group, the european bank for reconstruction and development (ebrd), the european investment bank, as well as the asian development bank (adb), play a key role in attracting capital to the energy sector. the world bank acts as the main reform officer in the energy sector, providing support in financing both public and private energy projects. for example, in 2019, significant reforms were carried out in the electricity sector with the support of the world bank. at the beginning of october 2020, with the support of the world bank, 23 projects worth 4.44 billion us dollars were implemented in uzbekistan. at the same time, the investment portfolio of the european bank for reconstruction and development (ebrd) in the country reaches 1.1 billion us dollars, with 66% of this amount directed to the development of the energy sector and sustainable development. the ebrd not only finances projects, but also offers technical support for the formation of an independent regulatory institution and the development of renewable energy sources in uzbekistan. a detailed analysis of energy efficiency policy in the republic of uzbekistan | 2022 partnership with the asian development bank (adb) in the energy sector covers six significant projects with a total value of 1.6 billion us dollars. adb also provides expert support to the ministry of energy in developing a strategy for financial strengthening of the electricity industry. american journal of business management, economics and banking volume 25 june 2024 p a g e | 16 www.americanjournal.org since 2020, the government of uzbekistan has introduced an innovative method of attracting foreign direct investment in the energy sector, focusing on cooperation between the private and public sectors. this strategy is aimed at increasing private capital inflows and at the same time reducing dependence on international financial institutions through the use of government guarantees. conclusion now the central and local authorities face a critical task — reformatting the fuel and energy structure in combination with improving the living standards of citizens. achieving this goal is possible through the comprehensive application of measures to save energy and increase its efficiency, including the active introduction of renewable energy sources (res). however, for the successful development of the renewable energy sector, it is critically important to create and approve an appropriate legislative framework, which has not yet been developed. in the process of analyzing the key outcomes and conclusions of this section, the following obstacles were identified: -the absence of an autonomous energy regulatory body in uzbekistan; -strategic planning for the development of energy infrastructure focuses on approaches related to increasing energy supply, while not taking into account the need for demand management; -the use of outdated, inefficient equipment and technologies in the electric power industry, which makes the power system extremely vulnerable and leads to frequent power outages; -there is no transparent methodology for calculating, monitoring and verifying planned savings. the existing legislative framework includes planned energy saving indicators for the electric power sector, but does not provide any targets for the transportation and distribution of natural gas; there is no policy that promotes highly efficient cogeneration; state-owned energy companies have no incentive to reduce their operating costs. energy supply is a key aspect of the nation's geopolitical strategy, requiring coordination of actions in the field of international politics and economics, which must be coordinated with domestic efforts. when forming a strategic approach in this area, economic interests and goals are determined by political priorities, emphasizing the close relationship between national domestic and foreign energy policies. this includes not only effective management of our own energy resources and their import, but also the development of strategies to minimize risks and introduce advanced technologies in the energy sector. therefore, improving energy efficiency and saving energy is a multidimensional task, since energy consumption affects all aspects of economic activity and social life. studying the experience of european countries in enhancing energy efficiency demonstrates that the key element of progress in this direction is the active participation of both economically active groups and the majority of the population. to address this task, it is critically important to implement a comprehensive energy strategy at the national level, which will include the efforts of the government, the business sector and citizens. this will require a holistic approach combining economic, technical and managerial measures. american journal of business management, economics and banking volume 25 june 2024 p a g e | 17 www.americanjournal.org references 1. decree of the president of the republic of uzbekistan “on the development strategy of new uzbekistan for 2022-2026” dated 28.01.2022 no.up-60. 2.decree of the president of the republic of uzbekistan no. up-5544 dated september 21, 2018 “strategy of innovative development of the republic of uzbekistan for 2019-2021”. 3.decree of the president of the russian federation dated 06/04/2008 no. 889 “on some measures to improve the energy and environmental efficiency of the russian economy”. 4.energy charter secretariat (2021) based on the roadmap for the transition to low-carbon energy for the electricity sector of uzbekistan (2020) 5.ideer-uzbekistan_202 2_ru. pdfhttps://www.energycharter.org/fileadmin/ documentsmedia/ideer/ideer-uzbekistan_2022_ru.pdf 6. gavhar khamdamova. industry and its role in the socio-economic development of society. scientific journal of “international finance & accounting” issue 2, april 2023. issn: 2181-1016. 7.khamdamova g.a. optimization of approaches to improving the energy efficiency in industrial enterprises of the republic of uzbekistan. monograph. lap lambert academic publishing. 2024. -148 p. 8.хамдамова г.а. новый этап развития национальной промышленности и её роль в современной экономике страны. журнал. молия. 2023. – №1. – с.86-94. 9.gavkhar khamdamova. theoretical and methodological foundations for determining the essence of the category “efficiency of the enterprise”. scientific journal of “international finance & accounting” issue 3, june 2023. issn: 2181-1016. 10.gavhar khamdamova. industry and its role in the socio-economic development of society. scientific journal of “international finance & accounting” issue 2, april 2023. issn: 2181-1016. https://www.lap-publishing.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 13 www.americanjournal.org ways to ensure financial stability of insurance companies in uzbekistan juraev dilshod maxmudjonovich tashkent state university of economics, independent researcher a b s t r a c t k e y w o r d s the relevance of this study lies in the fact that, based on the analysis of modern trends in the insurance system, reasons for the underdevelopment of the insurance market in uzbekistan to date have been determined. the article shows the need of relationship between state regulation and selfregulation and the role of creation of formal institutions and the institutional environment for development of the insurance market in uzbekistan. according to the conclusions drown, proposals to solve problems and develop the insurance market have been made. formation and development of the market economy fundamentally changes the role and place of insurance in the system of economic relations. insurance companies become one of the most important institutions of the modern national economy and play an important role in ensuring its continuous and efficient operation and sustainable growth., based on the imperfection of formal and informal institutions in our republic. insurance, insurance functions, insurance institution, official institutions, insurance premium, insurance market, insurance coverage, risk, risk distribution introduction in world practice, as a result of the globalization of economic risks and the emergence of various crises, the influence of the national economy on macroeconomic and financial stability requires improvement of the mechanism of the existing financial system of states, in particular, the insurance system and the activities of insurance companies. in this regard, in countries around the world and in international relations, not a single activity is carried out without insurance services. in developed countries, accumulated funds from insurance services account for 8-12 percent of the country's gross domestic product. in international relations, one of the indicators characterizing the level of financial stability of insurance companies is “accumulated insurance premiums, which are assessed by the possibility of accumulating investment funds in large quantities.” this, in turn, expands the investment opportunities of insurance companies and strengthens the financial stability of insurers. in international practice, a comprehensive study is carried out to determine areas for ensuring the financial stability of insurance companies. the basis of these studies is the characteristics of factors directly related to the financial stability of insurance companies, and it is divided into microeconomic and macroeconomic factors. microeconomic factors are associated with insurance, investment and other activities of insurance companies, and macroeconomic factors include industry, internal and american journal of business management, economics and banking volume 24 may 2024 p a g e | 14 www.americanjournal.org external economic factors. despite the above, today in international practice one of the main issues is conducting research aimed at ensuring the financial stability of insurance organizations. the implementation of large-scale reforms to ensure the financial stability of insurance companies in uzbekistan remains one of the most pressing problems. in particular, one of the priority tasks is “... expanding the volume of insurance, leasing and other types of financial services through the introduction of new types and improving quality”. in order to ensure the implementation of these tasks, the task was determined to develop a mediumand long-term strategy for the development of the insurance industry, increasing the volume of insurance premiums per capita three times by 2022, and doubling the industry’s share in the gross domestic product. this, in turn, is important in ensuring the financial sustainability of insurance companies. analysis of literature on the topic in the implementation of strategic development, it is necessary to balance the goals and interests of all participants of the insurance business. each of them has its own target profile a set of desired performance parameters. the individual participants were distinguished by not only significantly different, but often conflicting goals from the start. for example, owners have radically different views on financial management and profit sharing, underwriting and sales services have diametrically opposed positions on rate policy, and so on. at the same time, all participants of the insurance business usually have the same interests in only two positions: the existence of strategic management as a basis for the company's financial stability and competitiveness [3]. financial stability and solvency of insurance companies play an important role in protecting the interests of policyholders, because they serve as indicators of the reliability of the insurance company and the trust of potential customers. the financial well-being of millions of people depends on the timely fulfillment of the financial obligations assumed by the insurance company [4]. in addition to factors that directly affect the stability and activity of insurance companies, indirect factors also significantly affect it, for example, the general strategy and level of corporate management, the quality of financial management, the priority areas of management decisions, including the priority areas of innovative development: customer base, reinsurance politics, state of regional networks, qualifications of employees, duration of activity in the market, image, etc. [5]. according to kumykov[6], the need for timely and adequate evaluation of the results of the company's activities in order to make appropriate decisions requires an assessment of the company's financial stability. many scientists emphasize in their work that the stability of the company depends on its ability to respond to changes in internal and external factors [7]. considering this, it is proposed to consider these problems within the framework of stakeholder theory. of the many stakeholders, the most important influences are investors, creditors, competitors, shareholders, employees, and society. each of these stakeholder groups has a unique level of interest in the company and faces a number of challenges in assessing sustainability. research methodology in the course of research, the solvency of insurance companies, theoretical and practical bases of their development and scientific literature were studied, logical thinking, scientific observation, systematic approach methods were widely used based on empirical research on the topic. american journal of business management, economics and banking volume 24 may 2024 p a g e | 15 www.americanjournal.org analysis and results management of financial resources in insurance companies primarily has its own characteristics of activity. this is related to the unique role of the insurance industry in the country's economy. organization of financial management in insurance companies depends on: − it is necessary to understand the motives and incentives of various economic market subjects (interested parties of the considered business) in the field of management decision-making; − to create financial models of companies that allow analysis of financial problems taking into account the external environment and its processes. the basis of modern theory is the understanding that the goals of the company reflect the interests of its main stakeholders (groups), including the motives and incentives of top managers. the issue of financial stability of insurance companies became important during these times. insurance organizations established on a commercial basis have a wide range of opportunities, and they take on a large amount of insurance responsibilities by insuring all risks related to the life and activity of any legal entity or individual. insurance liabilities taken by insurance companies are growing year by year. we can see this situation from the tabular data described below (table 1). table 1 dynamics of growth of insurance liabilities received by insurance companies (trillion soums) the name of the indicator йиллар 2018 2019 2020 2021 2022 2023 increase (+) or decrease (-) in 2023 compared to 2018, in% liabilities received by insurers 161,5 240,5 262,8 298,1 539,1 599,9 + 371,5 in table 1 provides information on the liabilities received by insurance companies, if in 2013 the insurance liabilities received by insurance companies amounted to 161.3 trillion. soums, then by 2018 this figure reached 599.9 trillion. soums, and in 2018 compared to 2013, insurance liabilities received by insurance companies increased by 438.4 trillion. soums or 371.5 percent. from these data, it can be concluded that the financial sustainability required for an insurance company to meet its obligations is critical, and ensuring sustainability is a complex issue requiring extensive knowledge, skills, experience and evidence-based methods. therefore, it is important that insurance companies have reinsurance services while maintaining their financial stability, taking on greater liabilities and effective use of this service, which is a key factor in ensuring the financial stability of the insurance company. the insurance mechanism has the peculiarity of probability. the development and implementation of an effective insurance mechanism will depend on the insurance policy developed by the qualified personnel of the insurance company. therefore, a well-designed insurance policy will ensure the longevity and sustainability of the insurance company, from a financial point of view. the insurance policy developed by the insurance company can be analyzed by financial indicators for the year, the state of receivables and payables, the dynamics of cash flows and private capital. we can see these analyzes using the table data (table 2). american journal of business management, economics and banking volume 24 may 2024 p a g e | 16 www.americanjournal.org table 2 dynamics of financial results (income) of jsc “kafolat-sugurta” (million soums) indicators годы increase (+) or decrease (-) in 2023 compared to 2015, in% 2015 2020 2021 2022 2023 income from the provision of insurance services 28 544,8 36 244,3 47 949,4 58 628,7 79913,2 280,0 income from reinsurance to cover losses 1 413,1 3 169,7 4 857,7 8 440,9 6741,1 477,0 income from commission premiums, bonuses and fees from reinsurance 2 703,9 5 174,9 7 468,1 2 963,6 1303,4 -51,8 net revenue from the provision of insurance services 32 661,8 44 589,0 60 275,1 70 033,2 87957,7 269,3 gross profit from the provision of insurance services 15 899,3 21 056,5 28 278,4 29 465,9 34905,0 219,5 other income from financial activities 146 408,2 1 206,6 1 389,3 1897,1 1299,4 income from financial activities 4 557,8 5 963,7 4 794,9 8 391,2 16773,7 368,0 profit before income tax 3 075,4 3 063,2 3 567,4 4 306,1 4310,9 140,2 net profit of the reporting period 2 531,7 2 605,1 3 080,4 3 525,0 4060,4 160, when analyzing the data in table. 2, it became known that there was a significant increase in income from reinsurance to cover losses, a decrease in income from commission premiums, bonuses and fees, as well as a sharp increase in other income from core activities. the increase in net profit for the reporting period is relatively low, since all indicators except one exceed it at a high level, this indicates that the increase in costs for the provision of insurance services has reduced the efficiency of the organization of work in the insurance company. conclusion in order for the insurance company to operate in the same manner, it is necessary to ensure that the condition of equivalence is fulfilled for each type of insurance. it is necessary to constantly analyze the authorized capital, private capital, free assets, insurance reserves and insurance portfolios of the insurance company. it is necessary to improve the instruments for rating the financial stability of insurance companies based on world practice, and to publish the rating indicators given to insurance companies in an understandable form to the general public. it is necessary to consistently study the economic and financial activities of insurance organizations and evaluate their activities, and to develop actuarial activities. in determining the financial stability of insurance companies, it is necessary to use the experiences of foreign countries, in particular, to study the constructive experiences of the central and eastern american journal of business management, economics and banking volume 24 may 2024 p a g e | 17 www.americanjournal.org countries of europe, which are members of the european union, to introduce solvency ii standards into the insurance market of our country. references 1. указ президента республики узбекистан от 7 февраля 2017 года № уп-4947 “о стратегии действий по дальнейшему развитию республики узбекистан”. 2. https://www.louisepryor.com enhanced capital requirements and individual capital assesments insurers; comite europen des assurances.pdf 3. о.л. алексеева, м.с. павлова/ оценка результативности управления финансами страховой компании с позиции ключевых стейкхолдеров. вестник российского университета кооперации. 2016. № 1(23) – с. 4-7. 4. д.и. рамазанова. оценка финансовой устойчивости страховой компании. вестник дагестанского государственного технического университета. технические науки. 2015№1 (36), – с. 131-135 5. а.в. аносов, с.э. саркисов. проблемы адаптации моделей рейтинговой оценки страховых организаций при управлении рисками инновационно ориентированного развития. вестник таджикского государственного университета права, бизнеса и политики.2015№1, с. 8292. 6. а.е. кумыков. особенности анализа финансовой устойчивости организации внутренними заинтересованными сторонами // вестник евразийской науки, 2018 №2, том 10, стр 1-9. 7. в.и. бариленко. бизнес-анализ как основа механизма устойчивого развития коммерческих организаций // риск: ресурсы, информация, снабжение, конкуренция. 2014 – № 4. – с. 273-280. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 35 www.americanjournal.org improving the organizational and economic mechanism for increasing the strategic potential of competitiveness of service sector enterprises asenbaeva aidaigul edenbaevna, doctoral student at karakalpak state university named after berdakh, tel: +998934880195, e-mail: aydayasenbaeva@gmail.ru a b s t r a c t k e y w o r d s effective management of a company's competitive potential allows you to create certain competitive advantages. competition is an integral qualitative feature of the economic structure of society, built on the main market of economic principles, a means of self-regulation of the economic system and an element of objective international redistribution of resources between economic systems. industries and types of activities. competition, competitive potential, reserve, enterprise potential, resource, business. introduction in ensuring the competitiveness of service enterprises in the foreign market, an important factor is the technical and technological renewal and modernization of service processes by restructuring the internal competitive environment in accordance with modern requirements that shape the competitive environment in the services market. the current competitive environment in the economy accelerates the processes of modernization and technical renewal as an auxiliary “driving force” of development. in a competitive environment, there is a struggle between subjects of production relations for more productive equipment, a workplace, access to a better market and, in general, for the opportunity to receive a higher income. competition manifests itself as an incentive to improve the quality of services, reduce the relative level of costs and increase labor productivity. in a situation where supply exceeds demand, competition arises not between enterprises, but between their products (services). based on the above considerations, the competitiveness of services provided by service sector enterprises has a complex characteristic, which consists of a group of technical, technological, organizational, economic and social elements1. in modern conditions, service sector enterprises have limited internal capabilities and can develop sustainably by creating a favorable external environment and conditions. in conditions where external 1 khoshimov e.a., mingishov l.o. creating a full-fledged competitive environment in the country is the main factor in the modernization of production // scientific electronic journal “economics and innovative technologies”. no. 1, january-february 2015. american journal of business management, economics and banking volume 29 october 2024 p a g e | 36 www.americanjournal.org opportunities are small, the enterprise will play the role of an “outsider” and its position in the services market will be weak. here we will look at the main stages of the strategy for developing the company's competitive potential. the process of developing a strategy for developing competitive potential includes a number of stages (fig. 1.1). the external environment of an enterprise is studied to determine conditions that may affect its ability to perform its functions. the external environment of entrepreneurial activity is government regulation of the market and the behavior of competitors. economic, social, institutional and technological directions of development of the enterprise’s activities are considered as the main area of analysis. this stage of the study is determined by the need to identify the main directions of enterprise development, threats and opportunities. a service enterprise takes into account internal resources, opportunities and limitations (strengths and weaknesses), determining the state of the external environment as the context of development. the key aspect at this stage is the connection of internal resources with external threats and opportunities. it is necessary to further strengthen the strengths of the enterprise and correct the weaknesses. at this stage, it is necessary that the available human resources and financial resources are sufficient to overcome the problems identified during the external analysis. in doing so, the enterprise must also take into account its internal legal, professional or creative resources. changes may be required in training, organizational structure and program design, as in most other aspects. the first and second stages allow us to determine the necessary conditions for developing a strategy for developing competitive potential. figure 1.1. algorithm for implementing a strategy for developing competitive potential at a service enterprise american journal of business management, economics and banking volume 29 october 2024 p a g e | 37 www.americanjournal.org at the next stage, the enterprise conducts an assessment of competitive potential, which includes an analysis of the main components of competitive potential and determination of competitive potential based on a comprehensive assessment, taking into account the significance of each element. based on a quantitative assessment of the relevant components of competitive potential, a comparative analysis of each component of the competitive potential of the entire considered set of service sector enterprises is carried out and the dynamics of the components of its competitive potential is checked. deviations (in percentage) from the average value of the corresponding component of competitive potential are calculated for each enterprise. service sector enterprises are assessed for each component of competitiveness in ascending order, with the highest score assigned to the component with the highest value. aggregation of scores for each element of competitive potential allows us to give an overall assessment of the competitive potential of a service enterprise. comparison of competitive potential includes studying the competitive potential of direct competitors and other market participants, determining the average value of competitive potential in the network and comparing the assessment of the competitive potential of the enterprise with the average assessment in the network. if the value of the assessment of the enterprise’s competitive potential corresponds to the industry average or higher, then the enterprise does not require further development of competitive potential, but first of all it is necessary to realize and use existing opportunities. in a situation where the assessment of the competitive potential of a service enterprise is below the industry average, the question arises of increasing competitive potential based on choosing an appropriate strategy for developing competitive potential. the selection criteria are the internal and external competitiveness of the industry enterprise. the purpose of resource allocation and planning is to increase the efficiency of using available resources and reserves. during the planning process, standards and goals are developed that describe the efficiency of using enterprise resources. the final stage of the process of developing a strategy for the development of competitive potential is monitoring the efficiency of use of enterprise resources, which influences changes in the strategy for developing competitive potential. monitoring competitive potential includes collecting and analyzing data and comparing benchmark values with actual ones. after monitoring the effectiveness of the use of competitive potential, it is necessary to evaluate it to determine how effectively the competitive potential is used and whether there is a need for its further development. to develop the competitive potential of a service enterprise, it is necessary to take an integrated approach to the process of managing all elements of its composition, achieving synergistic results. all this should be taken into account when developing a strategy for the development of competitive potential, paying attention to the internal and external competitive capabilities of the enterprise, which depend on the corresponding potentials that determine them. the level of competitiveness of a service enterprise is a general indicator of interest and trust in its services in the stock, financial and labor markets. the cost of a service sector enterprise, the technical equipment of workplaces, the implemented management concept, management technologies, organizational system, human capital, strategic marketing, technical, investment and innovation policies are the main factors determining this measure. thus, by measuring and systematically influencing the above indicators, it is possible to manage the competitiveness of a service enterprise. the competitiveness of a service enterprise is measured by the american journal of business management, economics and banking volume 29 october 2024 p a g e | 38 www.americanjournal.org level of customer satisfaction and loyalty. the main components of this comprehensive measure are quality, price, service life, digital services, etc. the competitiveness of the components of a service enterprise is an integral indicator of the overall potential of service processes and characterizes it in all main aspects scientific, technical, financial, economic, personnel, production and technological. ensuring the attractiveness of investors and the trust of an enterprise in the production of services is possible only by providing competitive services, increasing the innovative potential of the enterprise, improving the quality of service process parameters by attracting investments. thus, the competitiveness of a service enterprise can be achieved through the targeted influence of the enterprise management subsystem on business processes in order to form and strengthen its competitive position. the main goal of managing the competitiveness of a service enterprise is to ensure the competitiveness of its services in the market. to achieve this goal, naturally, the enterprise must have service and management potential that is not inferior to that of its competitors, that is, the established goal includes not only services, but also the development of the enterprise’s potential, which ensures its competitiveness. with the wide variety of services offered by businesses today, competitiveness plays an important role in their success. it is known that managers and specialists are constantly looking for new methods and tools for enterprise management and ways to improve their competitive position. studying consumers and competitors, identifying the advantages and disadvantages of a service enterprise in comparison with competitors allows you to create promising competitive strategies and maintain competitive advantages. references 1. zaitsev n.l. economics of organization: textbook for universities. – 2nd ed., revised and supplemented. [text] / n.l. zaitsev. – m.: publishing house “exam”, 2004. -624 p. 2. petrov v. analysis of factors, indicators and criteria that determine the success of market entities in competition at the levels of economic activity (micro, meso, macro, global) [electronic resource] // risk. -1999. no. 4. 3. fatkhutdinov r. a. managing the competitiveness of an organization: textbook. allowance. m.: eksmo – 2005. -544 p. 4. fatkhutdinov r.a. managing the competitiveness of an organization [text]: textbook. / r.a. fatkhutdinov. 3rd ed., revised. and assoc. – m.: market ds, 2008, 432 p. 5. khoshimov e.a., mingishov l.o. creating a full-fledged competitive environment in the country is the main factor in the modernization of production // scientific electronic journal “economics and innovative technologies”. no. 1, january-february 2015. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 218 www.americanjournal.org prospects for the use of cryptocurrency and blockchain technologies for bank plastic cards xidoyatova gulnoza xusnitdinovna graduate school of business and entrepreneurship master's degree student in small business and entrepreneurship a b s t r a c t k e y w o r d s this paper explores the potential applications and prospects of utilizing cryptocurrency and blockchain technologies for bank payment cards in uzbekistan. an analysis of the current financial landscape in uzbekistan is conducted, examining the adoption of digital payments, mobile banking, and openness to emerging financial technologies. the core features and benefits of integrating cryptocurrency and blockchain solutions into bank card infrastructures are discussed, including enhanced security, transparency, efficiency, and financial inclusion. key challenges and considerations for implementation are also highlighted. the paper argues that while there is significant potential for these technologies to transform the bank card space in uzbekistan, a measured approach in partnership with regulatory bodies is needed for successful adoption. further research and controlled pilot programs are recommended to validate use cases and inform a national strategy. cryptocurrency, blockchain, bank cards, payments, uzbekistan, digital finance introduction the rapid global growth of cryptocurrency and blockchain technologies is opening up new possibilities for innovation in the financial sector. blockchain, the decentralized ledger technology underpinning cryptocurrencies like bitcoin, enables secure, transparent, and efficient recording and transfer of digital assets [1]. these technologies hold the potential to reshape legacy banking and payment card systems. uzbekistan has demonstrated strong interest and proactive initiatives in exploring emerging financial technologies. in 2018, president shavkat mirziyoyev signed a decree on the development of digital economy, signaling high-level support [2]. the decree outlined plans to integrate blockchain into public administration and support blockchain innovation. in 2019, uzbekistan released a regulatory framework for cryptocurrencies [3]. methods and literature review a comprehensive literature review was conducted focusing on three key areas: (1) the financial and payments landscape in uzbekistan, (2) applications of blockchain and cryptocurrency technologies in banking and card payments globally, and (3) regulatory approaches to these technologies. american journal of business management, economics and banking volume 23 april 2024 p a g e | 219 www.americanjournal.org key data sources included central bank reports, government publications, industry whitepapers, academic journals, and expert interviews. statistical data on metrics such as bank account ownership, card usage, mobile money adoption etc. was collated from the central bank of uzbekistan [4], government databases, and recent industry reports. results findings from the research and analysis are presented: 3.1 uzbek payments landscape • as of 2023, bank account penetration reached 60% of the adult population [4] • debit card usage for digital payments grew to 34% in 2022 [4] • mobile payments adoption is accelerating, with transaction volume doubling in 2023 compared to 2021 [5] • cash usage is declining but still prevalent, especially for informal and p2p payments • smartphone penetration reached 75% in 2023, with wide 4g network coverage [6] the data indicates uzbekistan's financial landscape is ripe for digital transformation. rising bank account and card ownership, coupled with high smartphone penetration, create conducive conditions for introducing advanced blockchain-based payment solutions. the covid-19 pandemic has further catalyzed digital payment adoption. 3.2 benefits of cryptocurrency & blockchain for cards major benefits of transitioning bank cards to blockchain-based infrastructures include: enhanced security: blockchain's cryptographic and decentralized architecture makes it highly tamper-resistant compared to traditional centralized ledgers [7]. each transaction is verified by a distributed network, mitigating single points of failure. cryptocurrency payments reduce risk of chargebacks and fraud [8]. efficiency gains: blockchain enables direct peer-to-peer transfer of funds without intermediaries, resulting in faster settlement times and lower transaction costs. smart contracts can automate compliance and risk checks. efficiencies can in turn promote financial inclusion. transparency and auditability: blockchain's immutable record provides a transparent audit trail, promoting accountability and trust [9]. regulators can be provided access to monitor transactions in real-time. programmable money: cryptocurrencies enable programmable rules to be attached to money, unlocking new capabilities [10]. funds earmarking, spending limits, and automated tax compliance are possibilities. integrating cryptographic identity management into card payments can support secure and privacy-centric user experiences. 3.3 challenges and considerations transitioning bank cards to blockchain infrastructures comes with challenges: scalability limitations: current blockchain platforms have transaction throughput constraints compared to conventional networks like visa [11]. however, newer blockchain protocols are making significant progress in scalability, with some achieving thousands of transactions per second [12]. american journal of business management, economics and banking volume 23 april 2024 p a g e | 220 www.americanjournal.org regulatory uncertainty: while uzbekistan has taken a proactive regulatory stance, guidelines around operational aspects of cryptocurrency usage for payments need further development [13]. coordination between central bank, financial institutions, and fintech ecosystem is crucial. monetary policy implications: widespread adoption of cryptocurrencies could theoretically constrain monetary policy levers. however, research suggests risks are manageable with appropriate regulatory safeguards and public-private collaboration [14]. central bank digital currency (cbdc) initiatives can complement blockchain payment rails. interoperability: seamless interoperability between diverse blockchain networks and traditional financial systems is an important consideration. emerging cross-chain protocols and iso standards are tackling this challenge [15]. capacity building: banks and regulatory bodies need to invest in developing specialized talent and upgrading technical infrastructures to implement blockchain solutions [16]. partnerships with blockchain technology providers and research institutions can accelerate competency building. public trust and education: driving public adoption requires raising awareness about benefits and addressing perceived complexities of using cryptocurrency for payments [17]. intuitive user interfaces, robust consumer protection measures, and educational campaigns are key. analysis and discussion the research synthesis indicates that uzbekistan is well-positioned to pioneer cryptocurrency and blockchain integration into bank card infrastructures. the strong alignment with national digital transformation priorities, growing public digital literacy, and proactive regulatory approach create a conducive macro environment. blockchain's security, efficiency, and transparency benefits can significantly elevate uzbekistan's payments landscape. opportunities to democratize access to financial services, reduce costs, and foster innovation are particularly compelling. programmable money opens up transformative use cases like smart contracts for instalment payments, automated fiscal management, and personalized spending controls. to unlock this potential, policymakers should collaborate closely with banking, fintech, and blockchain stakeholders to craft risk-calibrated regulatory frameworks. sandboxes and pilot programs can validate technical feasibility and uncover policy refinement areas. learnings from other jurisdictions like singapore and switzerland offer valuable guidance [18]. on the technology front, rigorous evaluation of maturing blockchain protocols is necessary to meet scalability, sustainability, and interoperability requirements of widescale card deployments. hybrid architectures combining permissioned and permissionless blockchains, sidechains, and layer-2 scaling solutions hold promise [19]. ecosystem building efforts should prioritize capacity building for banks, fintechs, and regulators through training programs, hackathons, and knowledge-sharing forums. public awareness campaigns showcasing tangible benefits and user-friendly interfaces are crucial for driving adoption at the grassroots. engaging influencers, educators, and community leaders can help build public trust. limitations of this analysis include the evolving nature of blockchain protocols and the lack of longterm empirical data on cryptocurrency usage for retail payments in developing economies. future research should focus on longitudinal studies, comparative analysis of adoption trajectories in similar markets, and social impact assessment of blockchain-based financial inclusion initiatives. american journal of business management, economics and banking volume 23 april 2024 p a g e | 221 www.americanjournal.org conclusion this paper highlights the significant potential of cryptocurrency and blockchain technologies to transform bank card payments in uzbekistan. the benefits of enhanced security, efficiency, transparency, and programmability align strongly with uzbekistan's digital economy aspirations and financial inclusion imperatives. realizing this potential requires a concerted multi-stakeholder effort. policymakers should prioritize creating enabling regulations that balance innovation and stability. central bank and financial institutions should invest in blockchain infrastructure and capacity building. fintech ecosystem should focus on developing user-centric solutions and driving adoption. academia should lead rigorous research to inform evidence-based policymaking. uzbekistan has a unique opportunity to leverage its proactive regulatory approach, digital-savvy population, and vibrant fintech community to emerge as a regional leader in blockchain-based financial innovation. with strategic execution and ecosystem collaboration, cryptocurrency and blockchain technologies can catalyze a more secure, efficient, and inclusive payments landscape in uzbekistan. references 1. nakamoto, s. (2008). bitcoin: a peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf 2. decree of the president of the republic of uzbekistan. (2018, july 3). on measures for development of digital economy in the republic of uzbekistan. 3. yakubov, a. (2019). uzbekistan establishes licensing regime for cryptocurrency exchanges. lexology. 4. central bank of uzbekistan. (2023). payment systems statistics. 5. ahunov, m. (2023). mobile payments in uzbekistan: 2023 review. 6. kerimov, u. (2023). uzbekistan telecoms, mobile and broadband statistics and analyses. buddecomm. 7. fanning, k., & centers, d. p. (2016). blockchain and its coming impact on financial services. journal of corporate accounting & finance, 27(5), 53-57. 8. guo, y., & liang, c. (2016). blockchain application and outlook in the banking industry. financial innovation, 2(1), 1-12. 9. tapscott, d., & tapscott, a. (2016). blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. penguin. 10. luu, l., chu, d. h., olickel, h., saxena, p., & hobor, a. (2016, october). making smart contracts smarter. in proceedings of the 2016 acm sigsac conference on computer and communications security (pp. 254-269). 11. vukolić, m. (2015, october). the quest for scalable blockchain fabric: proof-of-work vs. bft replication. in international workshop on open problems in network security (pp. 112-125). springer, cham. 12. kannengießer, n., lins, s., dehling, t., & sunyaev, a. (2020). trade-offs between distributed ledger technology characteristics. acm computing surveys (csur), 53(2), 1-37. 13. urakov, f. (2022). crypto regulations in uzbekistan. chambers and partners. american journal of business management, economics and banking volume 23 april 2024 p a g e | 222 www.americanjournal.org 14. auer, r., cornelli, g., & frost, j. (2020). rise of the central bank digital currencies: drivers, approaches and technologies. bis working papers no 880, bank for international settlements. 15. wu, j., tran, n.k. (2018). application of blockchain technology in sustainable energy systems: an overview. sustainability 2018, 10, 3067. 16. gatteschi, v., lamberti, f., demartini, c., pranteda, c., & santamaría, v. (2018). blockchain and smart contracts for insurance: is the technology mature enough?. future internet, 10(2), 20. 17. yermack, d. (2018). the potential of digital currency and blockchains. nber reporter, (1), 1417. 18. salis, e. (2021). blockchain regulations around the world. complyadvantage. 19. belotti, m., božić, n., pujolle, g., & secci, s. (2019). a vademecum on blockchain technologies: when, which, and how. ieee communications surveys & tutorials, 21(4), 3796-3838. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 47 www.americanjournal.org developing transport corridor key route for central asia sharustamov ayattillo odilovich toshchdtu was destroyed, e-mail: ayattillo_2007@mail.ru , tel.: (90) 321-36-38 a b s t r a c t k e y w o r d s this article discusses the creation of a new transport corridor through the caspian sea of turkmenistan and azerbaijan with russia, georgia and turkey, uzbekistan and kyrgyzstan opening up alternative routes for export and import flows. the economic and political objectives of each participating country, the risks and challenges of the project, such as the need for coordination, political and environmental risks, as well as financial and technical difficulties, are analyzed. a conclusion is drawn about the long-term importance of the corridor for the regional economy and geopolitics, prospects for attracting investment, developing infrastructure and strengthening economic stability in central asia are outlined. international transport corridor, logistics, railway, international transport route, cargo transportation. introduction the central asian region has historically been strategically important in trade and transport relations. in modern, this importance has increased even more, and the development of transport infrastructure and the creation of new communication routes in the region has become a major task. these transport corridors play a key role not only in uniting countries but also in opening up new opportunities for regional trade, tourism, and investment. through transport routes, economic cooperation between countries is deepened, expanded opportunities for access to global markets, and stimulated economic growth. developing transport corridors for central asia is expected to serve as an important foundation for the region's economic development, improved living standards, and international integration in the near future. in 2023, a historical agreement to create a transport corridor by passing kazakhstan was signed in tashkent. this initiative aims to provide an alternative route for transporting goods from kyrgyzstan and other central asian countries that face difficulties in transporting goods through kazakhstan. russia, turkmenistan, uzbekistan, kyrgyzstan, azerbaijan, georgia, and turkey are participating in the project. the new corridor involves transporting cargo across the caspian sea, connecting the port of turkmenbashi in turkmenistan with the ports of baku in azerbaijan, as well as the russian ports of american journal of business management, economics and banking volume 30 november 2024 p a g e | 48 www.americanjournal.org makhachkala and astrakhan. after crossing the caspian sea, the cargo will be distributed by rail and road, heading to europe and asia. to effectively implement the project, russia has begun dredging the bottom of the caspian sea, and kyrgyzstan is already looking for additional ferries. the corridor is designed for a wide range of cargo, which will help diversify trade flows and increase trade volumes between participating countries: oil and oil products will be transported from russia, azerbaijan, and turkmenistan to europe and asia. food and industrial goods bread, water and sodium sulfate from russia will be supplied to turkmenistan, uzbekistan, and kyrgyzstan. export of goods from central asia from kyrgyzstan, uzbekistan, and turkmenistan to russia, azerbaijan, georgia, and turkey. this transport corridor will become an important element in the development of the economies of central asia, creating new opportunities for export and import and reducing dependence on kazakhstan as a transit country. moreover, it will improve the region's transport infrastructure, reduce logistics costs, and strengthen economic ties with neighboring states and international partners. the new transport corridor across the caspian sea pursues several strategic and economic goals for each of the participating countries. the project is aimed at strengthening economic interaction, improving transport accessibility, and creating new logistics opportunities, which will increase the sustainability of the regional economy and its competitiveness in the international arena. let's consider the project's goals for each of the countries: russia project represents an opportunity to expand its export capabilities and improve access to markets in europe and asia. the corridor allows russia to bypass some sanctions restrictions by exporting oil and oil products via alternative routes through the caspian sea. it also strengthens american journal of business management, economics and banking volume 30 november 2024 p a g e | 49 www.americanjournal.org russia's position as a leading logistics partner for the countries of central asia and the caucasus, allowing it to expand its influence and diversify resource transportation routes. kyrgyzstan experiencing difficulties with transit through kazakhstan seeks to diversify export routes and create independent logistics chains. the new corridor allows kyrgyzstan to directly send goods to the caucasus countries and turkey, improving access to international markets and reducing dependence on transit restrictions. the development of the new corridor also opens up prospects for improving export logistics and supporting economic growth by reducing transportation costs. uzbekistan is a landlocked country, uzbekistan is interested in creating reliable and efficient transport routes to expand its trade ties. the new corridor will allow it to increase its export and import capabilities, developing trade with the caucasus, turkey, and europe. in addition, uzbekistan's participation in the project helps strengthen its position as a transport hub for central asia, which also supports its ambitions to integrate into the international economy. turkmenistan plays a key role in the project thanks to the port of turkmenbashi, which will become the starting point for the transportation of goods across the caspian sea. turkmenistan sees this corridor as an opportunity to strengthen its position as a transit state, receiving additional income from port and transport services. it will also help turkmenistan diversify its foreign economic relations and expand the export of gas, oil, and oil products. azerbaijan with its developed port in baku, azerbaijan also benefits from the creation of a new route. the corridor through the caspian sea strengthens azerbaijan's position as a link between central asia and europe. the project helps attract investment in the country's port and transport infrastructure, improving its logistics potential and increasing transit revenues. georgia situated at the crossroads between europe and asia, georgia is keen to take advantage of opportunities to develop its transit potential. participation in the project strengthens its role as an important link in the supply chain through the caucasus and opens up prospects for attracting investment in rail and port infrastructure. georgia can expand export opportunities for local producers, as well as boost trade with central asia and turkey. turkey plays a strategic role in the project as the end point of a corridor linking central asia and europe. for turkey, this is an opportunity to strengthen its economic and political ties with the states of central asia and the caucasus, as well as to strengthen its status as a regional logistics hub. the corridor provides turkey with additional sources of oil and oil products, helping to diversify energy supplies and strengthen cooperation with asia. thus, the creation of a transport corridor across the caspian sea meets the strategic interests of each participating country, allowing for the strengthening of economic ties, improvement of transport accessibility, and enhancement of the sustainability of logistics chains. in this context, the economic importance of the main categories of cargo comes to the fore, as they directly affect the success and profitability of this international project. american journal of business management, economics and banking volume 30 november 2024 p a g e | 50 www.americanjournal.org oil and oil products transportation of oil and oil products accounts for a significant portion of cargo turnover in the region. russia, azerbaijan, and turkmenistan have large reserves of oil and natural gas, and the export of these products is an important source of income for their budgets. the new corridor will provide these countries with the opportunity to expand export flows to europe and asia, bypassing existing sanctions restrictions for russia. according to the iea, the volumes of oil supplies from the region could reach 30-40 million tons per year in the next 5-10 years. increasing oil exports through the caspian sea will increase the income of participating countries and ensure a stable flow of foreign exchange earnings, especially with favorable energy prices. food products, including grain crops, sugar, water, and sodium sulfate, also have a high priority in cargo transportation through the caspian corridor. food products exported by russia will be in demand in the markets of turkmenistan, uzbekistan, and kyrgyzstan, which will help ensure food security and stabilize prices in these countries. food products account for about 10-15% of russia's total exports to central asian countries. expanding supplies will stimulate the agricultural sector and processing industry, especially in the russian regions focused on exports to central asia. it is expected that the volume of food supplies will reach 2-3 million tons per year, which will significantly strengthen bilateral economic relations. industrial goods such as equipment, construction materials, and light and heavy industry products also occupy a significant place in cargo transportation along the new corridor. kyrgyzstan, uzbekistan, and turkmenistan plan to expand exports of processing and textile products, while turkey and georgia may send industrial products to central asian countries through the corridor. increased supplies of industrial goods from central asia to turkey and the caucasus market could reach 1-1.5 million tons per year, which would contribute to the development of production capacity and employment in these countries. in the long term, this would create new jobs, increase productivity, and support the modernization of national economies. american journal of business management, economics and banking volume 30 november 2024 p a g e | 51 www.americanjournal.org the caspian sea transport corridor project opens up new horizons for the countries of central asia and the caucasus, providing them with an opportunity to diversify trade routes and reduce their dependence on transit through kazakhstan. this significant geopolitical and economic undertaking could become a catalyst for the development of the regional economy, contributing to the strengthening of economic stability and independence of the participating countries. in the long term, the project promises to become an important element of the strategic infrastructure of eurasia, linking its western and eastern markets. long-term prospects and development scenarios strengthening the logistics independence of central asia by creating a new transport corridor, central asian countries gain alternative access to international markets, which reduces their dependence on neighboring transit states and increases the stability of national economies. this, in turn, strengthens their political and economic independence, which is especially important in the context of a rapidly changing global situation and growing instability in certain regions. attracting foreign investors the caspian sea corridor could become an attractive target for international investors, especially in the infrastructure and logistics sectors. the project provides an opportunity to attract capital for the modernization of ports, construction of transport terminals, and creation of a modern logistics network. the development of investment potential could also stimulate the growth of small and medium-sized businesses in the transport services sector and related industries. development of transport infrastructure and technologies the creation of a new route requires significant improvements in infrastructure and logistics, such as modernization of ports and expansion of the capacity of railways and roads. these measures will also require the introduction of modern technologies to manage transport flows and improve the efficiency of the logistics chain. the introduction of innovations and digital solutions, such as automation of customs procedures and electronic cargo tracking systems, will make the corridor more attractive and competitive on the global stage. geopolitical significance and international cooperation the new corridor across the caspian sea could become an important link in expanding economic cooperation between central asian countries and europe, china, and the middle east. this project creates a basis for further development of trade and political ties and also contributes to the integration of the region into the global economy. the successful implementation of the corridor could become an example for other initiatives aimed at strengthening regional infrastructure and economic cooperation. forecasts for the volume and cost of cargo for participating countries russia oil and oil products are expected to export up to 20-25 million tons of oil and oil products annually, which will allow russia to additionally receive about $12-15 billion in revenue. food, the volume of food and water supplies to the countries of central asia can reach 2 million tons annually with a total value of about $500–700 million. azerbaijan oil and oil products, export from azerbaijan within the new corridor could amount to about 5-7 million tons per year, which will bring the country an additional $3-4 billion. american journal of business management, economics and banking volume 30 november 2024 p a g e | 52 www.americanjournal.org industrial goods, the volume of industrial product deliveries, including equipment and building materials, could amount to about 500 thousand tons per year, estimated at $200-300 million. kyrgyzstan industrial goods and agricultural products, the volume of exports of processed goods may amount to 300 thousand tons per year with an estimated value of $150 million. import of food and water, an increase in food imports from russia and other participating countries is expected to reach 1 million tons per year, worth $200 million. uzbekistan export of industrial products, with an export potential of 500-700 thousand tons annually, which could bring in about $250 million. uzbekistan energy imports: will be able to import up to 1–1.5 million tons of oil and oil products per year, worth about $600 million. turkmenistan export of oil and oil products, the country is expected to supply about 3-5 million tons of oil and oil products annually, which can generate income of up to $2 billion. export of sodium sulfate, the main sales markets are russia and central asian countries, total export volume is estimated at 100-200 thousand tons. turkey import and export of industrial goods, with a volume of up to 1 million tons, the total value of which can reach $500 million annually. this will strengthen trade relations with central asia and support turkey's industrial sector. conclusion the caspian sea transport corridor project is a significant development that could change the structure of trade flows in eurasia. if successfully implemented, it will provide participating countries with new opportunities for sustainable economic growth and improved living standards. this project will not only improve the region's transport infrastructure but also strengthen its position on the world stage, promoting stability and prosperity. the caspian sea transport corridor project is an example of effective cooperation between the countries of central asia, the south caucasus, and russia. this route will not only facilitate the transportation of goods but will also create conditions for the formation of a new logistics network capable of ensuring stable and sustainable trade relations in the region. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 49 www.americanjournal.org historical roots of national values hamdam umarov independent researcher, institute of socio-spiritual research a b s t r a c t k e y w o r d s the article highlights the historical roots of national and religious values, their role in society and human life. it is analyzed that national and universal values existed in interdependence, and that universal values, such as honesty, tolerance and justice, developed on the basis of national customs and traditions. national and universal values, customs, traditions, honesty, tolerance, humanity, hospitality, good neighborliness, historical heritage. introduction the system of values, which is an expression of the national values of the uzbek people and their interrelation, was formed under the influence of historical processes of our people, modern trends, various socio-political processes. our national values were formed in connection with the peculiarities of the origin of the nation and territorial space. national values, by their nature, are not confined to a narrow circle, but flourish, are renewed in the process of life, are enriched by the achievements of the values of other peoples. it is obvious that the customs of each nation, tribe, tribe, or people are unique. a sense of universal humanity does not rest solely on the desire to honor, demonstrate, and disseminate the values of one's people to others, but rather begins with accepting and respecting the values of each nation, tribe, and people for what they are. the people of uzbekistan are hospitable and open. they are open to any innovations, but at the same time do not forget their roots, carefully preserving and remembering their rich history and ancient traditions. the basis of our spirituality is national, our traditions are formed and strengthened in the bosom of the family, on the threshold of the neighborhood, and our customs, values and traditions, which have been passed down from ancestors to generations for centuries, are also valuable as symbols of our nationality. this area occupies an important place in uzbek culture. uzbek quarters connect the past and present of our people, unite and bring people closer, teach us to treat everyone with respect, regardless of social status, nationality or religion. it is in the quarters that the older generation preserves and protects the traditions and customs of the people, which are important in the upbringing of the younger generation. after all, this is not just a place to live, but a way of life and thinking, a centuriesold tradition where such qualities as hard work, humanity and morality prevail. national traditions are rooted in all aspects of our lives, and these traditions are a testimony to who we are, showing us what kind of nation we represent. national values are embodied in such spiritual american journal of business management, economics and banking volume 33 february 2025 p a g e | 50 www.americanjournal.org qualities as generosity, kindness, compassion, thoughtfulness, honor, modesty, chastity, modesty, nobility, patience, hospitality, tolerance, cheerfulness, generosity, hard work. respect for national values is a fundamental sign of respect for the nation itself. the uzbek people have long valued such qualities as welcoming both the young and the old, honoring elders, respecting neighbors, kindly treating relatives, caring for children, honoring guests and tolerance for people regardless of religion or nationality. the importance and role of islam in the development of our national values are enormous, and it has enriched our national values. in particular, the humanistic ideas brought by islam have had a significant impact on the improvement of the spiritual values of our people. the unparalleled kindness and generosity shown towards people and orphans displaced to uzbekistan during world war ii are the highest example of our national and religious values. in islamic teaching, showing kindness to orphans is recognized as a heavenly virtue. the hadith says that the messenger of allah (peace and blessings of allah be upon him) said: “whoever takes care of an orphan will be as close to me in paradise as he is,” and pointed to his middle and index fingers. [4; 55] these values are the fruit of immortal and invincible feelings such as faith, convictions, conscience, religion and spirituality. these values are the basis of the highest level of morality, knowledge and enlightenment. they embody the fruits of traditions recognized as universal to all mankind, such as peace, justice, humanism, education, hard work and creativity, which have made an incomparable contribution to the development of world sivilization. it is worth noting that our national and religious values are so closely intertwined that it is difficult to separate them. in particular, for many centuries our sacred religion has occupied a deep place in the hearts of our people, becoming a powerful factor in understanding the meaning of life and preserving our national culture, way of life, values, customs and traditions. after all, it is on this land that such qualities inherent in our people as humanity, kindness, honesty, concern for the future, mercy have taken root and developed. the great history and unique values of our people have embodied national and religious traditions for centuries. a virtue inherent in our people is to show even more kindness and generosity to those in need during the two eids religious holidays that have always been widely celebrated in our country. this beautiful custom embodies the essence of universal human values. it is on these days that respect is shown to the elderly, young people are honored, and the situation of orphans, the disadvantaged and the needy is taken care of. it is a human duty of every person, which is manifested in such noble qualities as receiving news from close relatives, bringing joy to the hearts of others, and eating food together. the ideas and teachings of islam, which have become our national values, are inextricably linked with the natural and historical development of our nation, its social life, way of life, past, future, culture, spirituality, customs, traditions, language, the region in which it arose, etc. it has manifested itself in various forms, in close connection with our national values, and has formed a unique system of national values. tolerance is forbearance and tolerance towards the way of life, behavior, customs, feelings, opinions, ideas, and beliefs of other people. tolerance does not mean passive, natural submission to the opinions, views, and behavior of others. rather, it means an active moral position and psychological readiness for mutual understanding, positive cooperation between individuals and different groups. [7; 260, 261]. as stated in article 8 of the constitution of the republic of uzbekistan, the people of uzbekistan are citizens of the republic of uzbekistan regardless of their nationality. [1;7] today, our children study in uzbek, karakalpak, russian, kazakh, tajik, turkmen and kyrgyz schools. these data indicate that american journal of business management, economics and banking volume 33 february 2025 p a g e | 51 www.americanjournal.org tolerance is the highest virtue, personifying interethnic harmony. our president sh. mirziyoyev emphasizes: “it is known that for many centuries on our ancient and generous land, representatives of different nationalities and ethnic groups, cultures and religions lived in peace and harmony. hospitality, kindness, generosity of heart and true tolerance have always been inherent in our people and form the basis of their mentality...” [5;295] in this regard, the encyclopedist abu nasr farobi asserts: “the spiritual and national heritage, the “spirits”, that is, the spirituality and consciousness of individuals, accumulated by a certain people and all of humanity, are nationalized and merge with each other” [6; 162], he says. thus, the modern generation develops national consciousness, embodying the ideas, thoughts and beliefs of their great ancestors. “when the elderly fall into need, cannot work and cannot say a word, hasten to show them mercy and give them what you can.” “but if a poor youth cannot hold a hoe or carry firewood, then giving him alms is a waste,” says our great thinker alisher navoi [3; 86]. in these thoughts, he expresses uzbek tolerance in two ways. giving charity to the elderly, supporting them materially and spiritually, showing compassion to them is a humane principle. these are sacred traditions inherited from our ancestors, as is uzbek tolerance. however, for able-bodied young people and youth, it is both a duty and an obligation to work and support themselves and their families. in islam, the issue of dignity is elevated to the rank of worship. the essence of worship is the protection of values. for example, the holy quran and hadith emphasize the need to be kind to parents. the reward for this virtue is considered one of the greatest deeds. one of the values that has been revered in our land since ancient times is respect for elders, obedience to leaders and observance of the law. it is extremely important for every believer to respect elders, obey their leaders and abide by the laws and regulations of the state and society. one of the main reasons for the chaos and conflicts, discord, hostility and destruction that are currently occurring in some parts of the islamic world is precisely the failure of such concepts. the proof of these thoughts is the hadith, which says: “whoever does not show kindness to our young and does not recognize the dignity and rights of our elders is not a representative of our people” [4:109]. another of our national and religious values is honesty. the teaching of our great ancestor bahauddin naqshband: "if worship is divided into ten parts, nine of them are the search for honesty, and the remaining part are other acts of worship," shows how high the status of honesty is. honesty represents purity in all aspects. one of the most important aspects of honesty is abstaining from betrayal and treachery, such as theft, bribery, fraud, plundering of state property. the importance of honesty and all the means leading to it, especially work and occupation, also occupy a special place among islamic values. prejudices and greed are condemned in our sacred religion. historically, one of the main traditions of the uzbek people is hospitality. the ability to receive guests is highly valued among the people, regardless of the abundance of the table and the wealth of the family. the hospitality of our people is known throughout the world. one of the few countries in the world that respects its guests more than itself. in uzbek houses, there is always a reserve in case of unexpected guests. this is a vivid expression of the harmony of national and religious values of hospitality. following the principle set out in the hadith: “whoever believes in allah and the last day must show respect to his guest” is a wonderful tradition that has come down to us from our ancestors. in conclusion, it can be said that our national values, formed over thousands of years, combined with the cultural and spiritual wealth created in the modern era, accelerate our development and contribute american journal of business management, economics and banking volume 33 february 2025 p a g e | 52 www.americanjournal.org to ideological and spiritual purification. all types of values are tools that help people, especially young people, live a prosperous life, live freely, and achieve spiritual and moral maturity. these values have become the guiding star of our lives in building the new uzbekistan and served as the cornerstone of the foundation of the third renaissance. today, teachers, parents and representatives of the intelligentsia are faced with an urgent task to convey to our people, especially to the younger generation, the essence of our closely intertwined national and religious values. references: 1. constitution of the republic of uzbekistan. "uzbekistan", t., 2023. p. 7. 2. alisher navoi. beloved in the trap. t., publishing house of literature and art named after gafur gulam, 1983. p. 86. 3. imam ismail al-bukhari. al-adab al-mufrad (masterpieces of etiquette) "uzbekistan". t., 1990. p. 55, 109. 4. mirziyoyev sh. we will decisively continue the path of national development and bring it to a new level. volume 1. -t., uzbekistan, 2017. -p.295. 5. farabi. city of virtuous people. t., 1993. p.162. 6. philosophy. encyclopedic dictionary. state scientific publishing house "national encyclopedia of uzbekistan". t., 2010. p. 260, 261. american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 15 www.americanjournal.org investing based on esg factors: methodological approach nasirov egamkul phd, head of the department “valuation and investments” tashkent state university of economics egamqul74@mail.ru a b s t r a c t k e y w o r d s the article describes the role and significance of the “esg” approach in ensuring the implementation of the objectives set by the un sustainable development goals. the methodological foundations for regulating esg activities at the international level and the methodology for assessing esg factors of companies have been studied. here, recommendations are given for the application of the esg approach in the national economy. esg factors, green economy, financial instruments, green investments, responsible investments, socially responsible investments, green financing, green projects. introduction in recent years, participants in international financial relations have increasingly attached importance to the sustainable development goals (sdgs). governments of various countries, regulatory institutions, development institutions, large companies, stock exchanges and financial market participants are actively involved in the implementation of the tasks included in the brm. in particular, the principles of responsible investment (pri, un principles for responsible investment) were developed based on the initiative of the united nations in this regard, which contain necessary recommendations for including the analysis of esg factors in investment activities. most of the world’s largest companies support this initiative. companies are also trying to ensure that their core goals are aligned with the wishes and desires of community members by considering esg factors when making investment decisions. for example, in january 2020, microsoft announced plans to transition to negative carbon emissions by 2030. from its foundation in 1975 to the present day, the company has undertaken to eliminate the consequences of the company’s carbon emissions. it also announced that it will invest $1 billion in the climate innovation fund [1]. unlike developed countries, in our country investment practice taking into account esg principles is at the initial stage of the process of formation. furthermore, the regulatory and methodological foundations for investing in the national economy based on esg principles have not been developed. furthermore, many local economic entities lack sufficient understanding of investment decisionmaking based on esg principles. in most cases, economic entities with an understanding of this issue do not pay serious attention to the implementation of esg principles. american journal of business management, economics and banking volume 27 august 2024 p a g e | 16 www.americanjournal.org review of literature on the topic today, new financial instruments are emerging as a result of global efforts towards sustainable development goals. this approach is confirmed by the following sources. currently, changes in all aspects of the financial sector are being implemented by introducing sustainable development tools into them. today, sustainable development is not only noted as a concept, but has become a practically oriented mainstream in the world of business and investment. this, in turn, requires the effective formation and development of the responsible investment (esg) market [2]. the application of esg approaches in companies is influenced by external factors, while the increasing interest of foreign investors and public policy in this area is of decisive importance [3]. responsible investing, or esg investing, relies on environmental, social and governance factors in the investment decision-making process. at the stage of transition to an information society and improvement of people’s lifestyle, investors do not look at economic efficiency as the main factor in assessing the feasibility of making investments, but at the same time, they consider criteria such as moral values and spiritual development of the individual as a priority. when making investment decisions, economic agents rely not only on the stable growth of the company’s financial indicators, but also on information not related to the company’s financial indicators, in particular, on the principles of environmental protection and social responsibility of these companies [4]. as a type of institutional innovation, the application of “green” financing policies leads to increased financial constraints for companies that pollute the environment more. this can change the actions of companies in terms of environmental pollution in a positive way. encouraging financial institutions and enterprises to assume more environmental and social responsibility through “green” financing policies can be an effective way to allocate resources and increase the efficiency of “green” development [5]. research methodology the methodological basis of the research includes the theoretical rules related to the application of esg factors in the financing of projects and investment decisions aimed at achieving “green” economic development provided for in the concept of sustainable development. graphic methods, grouping and comparison, analysis and synthesis methods were used in the research process as a systematic approach to the object of research. analysis and results in recent years, representatives of the international community have increasingly put forward the idea that income from any business should correspond to generally accepted norms and rules related to environmental protection, social justice and responsibility, as well as the protection of human rights. this concept is directly related to the practical application of esg principles. the concept of “esg”, which combines environmental, social, and corporate governance factors, was first used in a report prepared in 2004 based on the materials of the conference “who cares wins”, held on the basis of a joint initiative of the un and major financial institutions [6]. subsequently, on the basis of the un initiative, in cooperation with institutional investors, 6 principles of responsible investment for economic entities were developed (fig. 1). american journal of business management, economics and banking volume 27 august 2024 p a g e | 17 www.americanjournal.org figure 1. principles of responsible investment, developed on the basis of the un initiative [7] in the context of responsible investment, voluntary principles such as taking esg factors into account when investing by economic entities, taking esg factors into account when managing a company, requiring disclosure of information related to esg factors, assisting in the implementation of esg factors, interaction with enterprises and organizations operating on esg principles, and sharing work carried out on esg principles with others should be considered. methodological approaches to the regulation of esg factors are mainly related to the establishment of rules for disclosure of non-financial reports. in international practice, a number of legal frameworks and initiatives related to the regulation and coordination of esg activities have been formed. such legal bases and initiatives have the following form (fig. 2). figure 2. legal frameworks and initiatives related to the regulation of esg activities at the international level 1 1 it was compiled by the researcher based on the reports of international organizations. american journal of business management, economics and banking volume 27 august 2024 p a g e | 18 www.americanjournal.org as part of the global call on climate change, many countries of the world have joined the paris agreement on climate change. more than 190 countries of the world, which have signed this agreement, have undertaken obligations to achieve the brm. on the basis of such changes, until recent years, a number of companies abandoned the voluntary practice of disclosing information that was not institutionally accepted to combat climate change. in its place, a robust esg ecosystem has been established. guidelines are published and regularly updated by the developers of international esg standards to help understand the requirements for corporate esg practices and what esg-related topics should be disclosed. in this way, esg standards have an impact on decisions regarding the direction of the company’s esg strategy. we now turn our attention to a review of a number of international standards related to esg (see table 1). most of the international standards for sustainable development presented in the table are nonbinding. that is, disclosure of non-financial information by companies is based on discretion. however, it is mandatory to present non-financial statements based on the ifrs s1 and ifrs s2 standards provided by the international sustainability standards board (issb) and the european union’s corporate reporting guidelines on sustainable development (csrd). international practice, in addition to presenting reports based on esg and sustainable development standards, there is a practice of determining esg ratings and esg rankings of companies. esg ratings of companies can be determined by international agencies as well as national rating agencies. today, there are about 160 entities operating in the global market that determine esg ratings or offer analytical information packages using esg data. there are a number of commercial and noncommercial organizations that offer comprehensive or specialized esg rating data sets. the following companies can be included in the list of leading companies in the international esg ranking market: iss (institutional shareholder services) esg; sustainalytics esg risk rating; moody’s, msci and s&p global companies’ esg ratings; bloomberg esg scores; fitch climate vulnerability scores (fitch ratings); ftse russell’s esg ratings; thompson reuters esg scores. table 1 characteristics of international esg standards2 № naming of international standards characteristics of international standards 1. global reporting initiative (gri) gri is one of the most widely used standards in global esg practice. the gri includes comprehensive reporting requirements for the governance, economic, environmental and social aspects of a company’s operations. this standard was developed by exxon valdez in 2000, based on the impact of damage to the environment caused by oil spill during oil extraction. according to the sustainable development report of 2020, which was reviewed by kpmg, 96% of the world’s 250 largest 2 it was compiled by the researcher based on the information obtained from the official websites of international organizations and associations. american journal of business management, economics and banking volume 27 august 2024 p a g e | 19 www.americanjournal.org companies reported on their sustainable development activities. 73 percent of companies reporting in this area are based on the gri system. 2. the sustainability accounting standards board (sasb) the sustainable development reporting standards include 77 industries. for each industry, a minimum set for reporting topics and a set of indicators for quantitative evaluation and comparative analysis of efficiency are provided. since august 2022, the international standards board for sustainable development (issb) of the international financial reporting standards fund (ifrs) has assumed responsibility for sasb standards. issb, in turn, has undertaken to support, improve and develop sasb standards. 3. integrated reporting (ir) the concept of ir was originally announced by the international integrated reporting council (iirc). the iirc was established in august 2010 with the aim of creating a globally recognized reporting system for companies to create specific value over time. ir is based on 3 fundamental concepts. these are: creating, maintaining or reducing value for the company and others; financial, production, human, health capital and social relations; the process of creating, storing or destroying value. in june 2021, the international integrated reporting council (iirc) merged with the sustainable development accounting standards board (sasb). as a result of the merger, the value reporting foundation (vrf) was established. the goal of the merger is to provide investors and corporations with a comprehensive system of corporate reporting. in this case, the value of the enterprise is determined according to the necessary standards. 4. recommendations of the working group on disclosure of climaterelated financial information (task force on climate-related financial disclosure, tcfd) the working group examines the health risks associated with climate change, the risks associated with liability, and the risks associated with transitions to a low-carbon economy. it also analyzes the effectiveness of information disclosure in various sectors of the economy. in this direction, the main attention is paid to the risks associated with climate changes and their financial aspects. also, recommendations are based on a scenario approach. recommendations, in turn, apply to financial institutions and non-profit organizations. the tcfd recommendations were introduced in 2017 to help investors, lenders and insurers obtain the information they need to assess the risks and opportunities associated with climate change. implementation of the working group’s recommendations is voluntary. however, in countries such as brazil, japan, singapore, switzerland, great britain, the application of the recommendations of the working group is becoming a mandatory condition. according to tcfd’s 2022 report, as of october 2022, more than 3,800 companies have submitted reports based on tcfd’s recommendations. 5. non-financial disclosure standards for greenhouse gas emissions (carbon disclosure project, cdp) cdp worldwide is a non-profit organization founded in 2000. this organization manages a global system for disclosure of information on the environmental impact management of investors, companies, cities, regions and regions. more than 20,000 companies from around the world complete the survey on climate change, water resources and forestry provided by cdp. the cdp questionnaire is mutually agreed with the tcfd. 6. international council of standards for sustainable development issb has released two global standards for corporate disclosure of information on sustainable development. these are the international standards of financial reporting ifrs s1 “general requirements for american journal of business management, economics and banking volume 27 august 2024 p a g e | 20 www.americanjournal.org (international sustainability standards board, issb) disclosure of financial information related to sustainable development” and ifrs s2 “disclosure of information related to climate change”. it is noteworthy that these standards came into force on january 1, 2024. 7. the european union’s corporate reporting instruction on sustainable development (corporate sustainability reporting directive, csrd) from january 5, 2023, the european union’s corporate sustainability reporting directive (csrd) came into force. this directive affects more than 50,000 companies in europe and more than 10,000 companies outside europe. the standards cover all aspects of environmental, social and governance issues, including climate change, biodiversity and human rights. these standards help investors to understand how the companies in which they invest are making a sustainable development impact. today, the number of organizations that determine esg ratings in the global market is increasing year by year. in turn, each organization providing such services has its own methodology for determining esg ratings and they differ from each other. in addition, some organizations determine the esg rating based on open data without sending a formal request to the company. therefore, when esg indicators of the same company are evaluated by different organizations, its results differ significantly from each other. for example, studies conducted by florian berg, a researcher at the “mit sloan school of management”, show that six out of ten different esg ratings match. a comparison of the msci and sustainalytics ratings for s&p global 1200 companies by csrhub revealed a weak correlation (0.32) between the two ratings. this indicator differs several times from the indicators used to determine credit ratings. usually, credit scores match in 99% of cases. for example, moody’s and s&p credit ratings have a very strong positive correlation (0.90) [8]. therefore, the esg rating system based on different standards is an obstacle for market participants to make informed decisions when investing capital taking into account esg. this situation, in turn, means that different esg standards and rating methodologies need to be reviewed in terms of integration. conclusion 1. in our country, the practice of making investments based on esg factors is at the initial stage of the formation process. in our opinion, the state should be the leader in the development of such activities. for this, it is necessary to include esg-related provisions and frameworks for regulating and promoting esg activities in legislative documents. 2. the lack of a single set of standards and evaluation methodology for evaluating the esg indicators of companies, the lack of clear definition of entities that regulate esg activities in the segment of economic entities, and the absence of organizations for determining esg ratings are an obstacle to the development of esg investment practices in uzbekistan. therefore, in our country, based on foreign experiences, a single set of esg standards, their evaluation methodology, the establishment of entities regulating esg activities, and the introduction of the procedure for determining esg rating serve to fill the "gaps" in this regard. 3. in order to develop esg activities in uzbekistan, it is recommended to accelerate the issuance of “green” and “social” bonds and the granting of “green” loans by commercial banks, the creation of new types of “green” energy and their active use, as well as the use of ecological labels. 4. in uzbekistan, it is necessary to make it mandatory to apply esg requirements in the following types of activities and directions: american journal of business management, economics and banking volume 27 august 2024 p a g e | 21 www.americanjournal.org at the initial stage, large and medium-sized business entities, and at the next stage, all small business entities submit an esg report; reflection of esg factors in the feasibility study (business plan) of medium and large investment projects; to study the compliance of projects with esg standards when allocating loans to medium and large investment projects by commercial banks; inclusion of esg principles in the requirements of investment portfolio formation by commercial banks, insurance companies and investment funds. references 1. https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/?culture =ru-ru&country=ru 2. ivanitsky v.p., petrenko l.d. development of responsible investments in accordance with the concept of sustainable finance. journal of new economy. 2020, vol. 21, no. 4, -p. 63. 3. galazova s. s. the influence of esg factors on the sustainable development of companies and the financial performance of the corporate sector // bulletin of the rsue rinh. 2018. no. 4 (64). p. 81–86. 4. ivanitsky v. p., gabyshev d. n., zubkova l. d. individual income tax management: new opportunities// manager. 2019. vol. 10, no. 5. p. 41–51. doi: 10.29141/22185003‑2019‑10‑5‑5. 5. shuitu qian, wenzhe yu, green finance and environmental, social, and governance performance, international review of economics & finance, volume 89, part a, 2024, pages 1185-1202, issn 1059-0560, https://www.sciencedirect.com/science/article/pii/s1059056023003386 6. https://www.unepfi.org/fileadmin/events/2004/stocks/who_cares_wins_global_compact_2004.pdf 7. https://www.unpri.org/about-us/what-are-the-principles-for-responsible-investment 8. berg f., koelbel j.f., rigobon r. aggregate confusion: the divergence of esg ratings. 2019. https://www.eticanews.it/wp-content/uploads/2019/09/20190819mitdivergenceesgratings.pdf https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/?culture%20=ru-ru&country=ru https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/?culture%20=ru-ru&country=ru https://www.sciencedirect.com/science/article/pii/s1059056023003386 https://www.unepfi.org/fileadmin/events/2004/stocks/who_cares_wins_global_compact_2004.pdf https://www.unpri.org/about-us/what-are-the-principles-for-responsible-investment https://www.eticanews.it/wp-content/uploads/2019/09/20190819mitdivergenceesgratings.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 1 www.americanjournal.org problems of developing ecotourism and the technology of using natural resources in the territories of surkhandarya region bunyod o‘tkirovich abdullayev senior lecturer (phd) department of "automation and control" termez state engineering and agro-technological university phone: +998 99 677 27 92 email: bunyod.abdullayev2792@gmail.com https://orcid.org/0009-0009-2086-9532 a b s t r a c t k e y w o r d s the article provides a comprehensive overview of the problems of developing ecological tourism and natural resource utilization technologies in the surkhandarya region, the positive and negative consequences of the development of ecological tourism, the swot analysis of ecological tourism, ways to solve the problems of developing ecological tourism, the necessary conditions for forming a program for developing ecological tourism in the regions, and the main tasks of the "green step into the future" ecological tourism development program. tourism, productivity, tourists, hotel, infrastructure, assessment, index. introduction the development of ecotourism in the surkhandarya region is associated with a number of accompanying problems, in fact, this type of active rest is at the stage of formation. successful solution of these problems of environmental, economic and social nature determines whether tourism justifies its ecological status, its proper development in the context of overall sustainable development. the development of ecological types of tourism in the regions of the surkhandarya region is complicated by the lack of funds of an economic and natural nature and the search for sources of their income, the problems of impact on the natural environment. inadequate infrastructure (international vehicles, roads and road signs, public transport, hotels and guest houses) is a serious obstacle to the successful development of ecotourism. in particular, in order to increase the access for tourists to large natural objects and protected areas, it is necessary to build residential and catering facilities next to them. promotion and encouragement of domestic tourism is a key factor for the development of economical and profitable ecotourism at the regional and local levels. therefore, it is advisable to use the swot american journal of business management, economics and banking volume 33 february 2025 p a g e | 2 www.americanjournal.org analysis method to identify the internal and external environmental factors and divide them into four main categories (figure 1). figure 1. swot analysis of ecotourism in the regions of surkhandarya region when organizing ecotours it is very important to pay special attention to the physical and mental safety of tourists (in conditions of protection from natural disasters, accidents, diseases and crime). it is necessary to provide medical care in case of accidents and illnesses. prevention of offenses is important for the positive image of any tourist center or destination. ensuring the employment of the local population should be at the heart of ecotourism policy. in this regard, it is advisable to organize special training courses for local gids to ensure that they have the right knowledge and skills. an important tool for the development of ecotourism areas should be the involvement of all participants in the integrated policy and tourism process. in particular, the creation of a network of rural areas rendering of tourist services, which will contribute to stimulating the local population and improving the quality of tourist services. literature review on the topic in-depth analysis and research of the existing potential opportunities in the ecotourism market is not enough. proper scientific support is in great need. ecotourism policy and development programs should be based on research and expert assessments conducted by local research and educational institutions. kuchli tomonlar • boy tabiiy resurslar • mahalliy taklif bo‘yicha ekologik tashabbuslarning ko‘tarilishi • mahalliy turistning yetukligini tez shakllantirish kamchiliklari • ekoturizmning minimal standartlari haqida bilimlarning yetishmasligi • ekoturizmni marketing va targ‘ib qilish tizimlarining amalda oqsoqlanishi • sohada kbxtni barqaror va tarkibiy davlat tomonidan yetarli qo‘llabquvvatlanmasligi imkoniyatlar • ekologik va qayta tiklanadigan turizmga bo‘lgan talabning tez o‘sib borayotgani • xalqaro tashabbuslarning o‘sishi va mahalliy hamkorlarni izlash hamda sherikchilikni yo‘lga qo‘yish • ishbilarmonlik turizmi mahsulotlarini va dam olish kunlarini targ‘ib qilish va tijoratlashtirish tahdidlar • asosiy “issiq nuqtalar”dan tashqarida markazsizlashtirishning yetarli emasligi • yashillikni haddan tashqari suiiste’mol qilish va atrof-muhitga salbiy ta’sirni oshishi • sektor xodimlari va mahalliy hamjamiyatlarning malakalarini sekin rivojlantirish american journal of business management, economics and banking volume 33 february 2025 p a g e | 3 www.americanjournal.org the implementation of the international folklore festival "baysun bahari", which glorifies the centuries-old values of our people in the surkhandarya region, plays an important role in the development of the tourism industry of the region. as a result, the surkhandarya region has become popular, visiting not only domestic but also foreign tourists, since such events are necessary for the development of international tourism. this, in turn, made it expedient to develop eco-tourism in the region in any conditions. the surkhandarya region is distinguished by a variety of natural conditions, a wealth of ecological and recreational resources. protected areas are important for recreational tourism, even if their main purpose is to preserve objects inherent in the area, as well as to preserve and restore valuable and unique natural complexes or their essential structural elements. currently, the measures being taken to develop ecotourism include the development of the reserve fund. at the same time, it is desirable to provide for natural entities nature reserves, national parks, zoos. where possible, it is better to walk or use public transport instead of renting a car. thus, we analyzed possible options for solving the problems of further development of ecotourism. in recent years, positive results in the field of tourism have been achieved in the surkhandarya region. the reason for this is that it has implemented a number of priorities (figure 2). figure 2. ways to solve the problems of eco-tourism development tasks for the development of tourism in the surkhandarya region to stimulate sustainable and environmentally friendly energy production rational and efficient use of energy and protection of atmospheric air from greenhouse gases promote sustainable transport and maintain clean and contaminated air conservation of soil and water from pollution and economical use of water promotion of recreation activities, taking into account the environment and nature conservation waste prevention & waste optimization design of recreational spaces using environmentally friendly technologies and contribute to the conservation of biodiversity ensuring the quality of local goods and services at international level use of environmentally friendly materials in goods and services and avoidance of hazardous substances american journal of business management, economics and banking volume 33 february 2025 p a g e | 4 www.americanjournal.org it is very difficult to assess the effectiveness of reserve fund entities at exact values. because while in many cases the focus is on cost-effectiveness, in fact, social efficiency is also important. this entails a focus on environmental protection activities in the regions. because, in the context of increasing needs of the population for recreation and tourism, in the conditions of broad and intensive interaction of society and nature, there is a reasonable need for planned use of natural resources through the use of appropriate mechanisms of balanced nature. recreation and health restoration of the population is an urgent issue of our time, and one of the ways to restore it is ecologically oriented tourism, which is designed to implement the conceptual framework of sustainable development. analysis and results at the expense of the economic benefits of ecological tourism, it is possible to improve the quality of life of the local population, increase their participation in the preservation of the habitat, increase the ecological culture. they should be aimed at preserving the values of natural, cultural and historical landscapes, passing them on to future generations as well as promoting ecotourism planning with the support and participation of responsible and relevant organizations. today, the trend of tourism development is the transition from the leisure cycle model to an individualized recreational demand and the satisfaction of intellectual demands through types of tourism. at the same time, instead of the three "s" ("sun – sea – sand") ("sun – sea – sand"), it is possible to replace the three "l's" ("lore – landscape – leisure" ("knowledge/national traditions – landscape – leisure"). it is this formula that reveals the essence of ecotourism. in the context of such an approach, today we can say with full confidence that for a number of regions of the surkhandarya region, the territorial combination of natural conditions and resources is included in the strategy of regional development, which is clearly expressed for recreational and tourist purposes. an emphasis on improving and actively developing "green tourism" can justify the tourism industry in the province. regional development and uneven living standards of the population create necessary conditions for social tension in society, threaten the territorial integrity of the country, limit the dynamics of socioeconomic indicators, slow down market changes and reduce their effectiveness. in this regard, the regional policy of the state should serve as the basis for creating conditions for increasing the competitiveness of the regions, their accelerated development and overcoming significant interregional imbalances1. the development of the regional development management strategy is based on the identified main areas of the environmentally friendly policy and requires significant adaptation of the norms and requirements existing in the country with international standards. in particular, the natural conditions of the regions of the sariasia district are very favorable for the development of many directions of ecotourism cognitive, adventure, rural, wellness, winter, mountainous, children, youth, family, trips (walking, horseback riding, cycling) and development. this is facilitated by the mountain landscape with a diversity of flora and fauna, a mild climate, fresh air saturated with the aroma of luxuriously blooming spring and summer vegetation, a network of mountain streams and clean water sources, including many minerals. regarding the development of eco-tourism in baysun, sariasia, termez district, kumkurgan and sherabad districts of the surkhandarya region, it is expedient to form a "green step to the future" 1 dikiy o.v. osnovnye prioritety i mekhanizm strategicheskogo planirovaniya sotsial'no-ekonomicheskogo razvitiya regiona [main priorities and mechanism of strategic planning of socio-economic development of the region]. – 2011. – № 11. – p. 71-76. american journal of business management, economics and banking volume 33 february 2025 p a g e | 5 www.americanjournal.org program, which is based on the stability and conservation of used natural resources of the environment. in turn, the improvement of the travel system and the use of alternative, i.e., environmentally sustainable methods of carrying out tourist activities (fig. 3). figure 3. prerequisites for the formation of a program for the development of ecological tourism in the regions this is possible, first of all, to radically change the field of employment, income of the population, budget replenishment, solving the issues of sanitation of villages and towns, arrangement of roads and streets, landscaping. as a result, the attractiveness of the regions will increase, the tourist flow will increase, the production of consumer goods will develop, as demand by tourists will appear. it is clear that financial resources are the driving force of any development, including innovative ecotourism. in this regard, there was an urgent need to find a source of financing for the development of ecotourism in the region. environmentally sound design methods, proper use of the natural environment, long service life and use of low-maintenance materials, optimized use of solar energy and rainwater harvesting systems can be proposed in the future, taking into account different climatic conditions. it is worth highlighting some aspects of the above-mentioned issues, the implementation of which will allow to direct tourism development towards a sustainable and balanced path: activation of the general state policy in the field of ecotourism and improvement of the system of regulation of ecotourism activities; finding a source of financial support from state and territorial authorities for the development of ecotourism; to improve the information and advertising system and attract various types of investments; compliance with various international standards in the implementation of ecotourism activities, creation of appropriate infrastructure; programme for the development of eco-tourism in the region structural changes in tourism achieving sustainable economic development identification of directions for the development of recreation zones and eco-tourism in the region development of innovative system of production and introduction of tourism technologies "green" promotion of competition entrepreneurial activity and investment activity technological modernization of economy american journal of business management, economics and banking volume 33 february 2025 p a g e | 6 www.americanjournal.org improving the quality of tourist services through standardization, certification and licensing of ecotourism activities; to ensure high-quality training and employment of highly qualified personnel. in our opinion, it is desirable to define the main objectives of the above-proposed green step to the future program for the development of ecological tourism as described in table 1. table 1 key tasks of the program for the development of ecological tourism "green step to the future" improvement of the legislative base ensuring financial and logistical harmonization rational use of natural tourism and tourism resources sustainable development of tourist areas and facilities, local communities increasing the competitiveness of the ecotourism market in surkhandarya region promotion of an active and healthy lifestyle increasing ecotourism products conservation of biodiversity and unique landscapes improving service quality and tourist safety development of personnel and infrastructure consequently, the prospects for achieving sustainability and high profitability in the sector can be predicted after the above-mentioned norms for the rational use of natural resources and the safe development of tourism, in particular ecotourism, are implemented at the appropriate level. it consists of: increasing the tourism potential of the region; to ensure the preservation and rational use of natural and creative resources; to ensure the availability of tourism resources for all segments of the population, both local and foreign; to encourage local people's interest in promoting such policies; to improve the efficiency of public and private interaction in the field of ecotourism. ecotourism is actively developing in sariasia district as an innovative area of tourism. of course, for this it is necessary to develop marketing activities, strong financial support from both domestic and foreign investors. the development of ecotourism is able to solve a number of socio-economic and environmental problems of the mountainous region. all this activates a new way of thinking, innovative economic activity of the local population. therefore, it is necessary to improve the system of financing and lending for the development of ecotourism in the mountainous sariasia region, meet their modern needs and, accordingly, attract sufficient reserves for the development of the tourism industry in these regions. since tourism is an energy-intensive industry, it can accelerate the transition to increasing the share of renewable energy in the global energy balance. by encouraging investment in clean energy sources, ecotourism can help reduce greenhouse gas emissions, mitigate climate change, and use energy for all. energy is at the heart of almost every major challenge and opportunity, so the following very important goals can be cited that are relevant to achieving the sustainable development goals on energy use: goal 1 – poverty alleviation: eradicating energy poverty in all its forms remains one of the biggest challenges. goal 2 – achieve food security: promote nutrition and sustainable agricultural development. goal 4 – quality education: ensure education and promote lifelong learning opportunities for all. american journal of business management, economics and banking volume 33 february 2025 p a g e | 7 www.americanjournal.org goal 6 – clean water and proper sanitation: energy to pump water for irrigation, crop cleaning, clean drinking and hygienic sanitation. goal 7 – affordable and clean energy: health services and infrastructure require sustainable energy; poor health and energy use often go sideways. goal 8 – decent work and economic growth: access to energy sources that was previously unattainable can be achieved. goal 9 – industry, innovation and infrastructure: creating sustainable infrastructure, promoting sustainable industrialization, innovation. goal 10 – reduce inequality: energy use is unequal both globally and across countries. goal 12 – responsible consumption and production: sustainable energy can separate economic growth from environmental degradation. goal 13 – climate action: we need to decarbonize energy sources and decouple energy use from emissions by reducing energy emissions to reduce global temperature rise. goal 15 – protection of ecosystems: stimulate the restoration and rational use of terrestrial ecosystems, stem and reverse the process of forest use, land degradation and biodiversity loss. goal 16 – peace and justice: energy is essential for post-conflict recovery2. based on these sustainable development goals, ecotourism must develop to accelerate the transition to renewable energy sources, increase its share of the global energy balance, help reduce greenhouse gas emissions, contribute to innovative energy solutions in regional and remote areas, and provide reliable energy. in general, the range of environmentally oriented types of tourism that can successfully develop in the regions of the surkhandarya region is very wide, but investments and weighted advertising policies are not enough. it is advisable to consider the development of ecotourism, rural and green tourism as promising areas of tourism business in the surkhandarya region. it is important to stimulate the arrival of international tourists and to introduce into the industry various exotic types of tourism. at the same time, a prerequisite for such a regional development scenario should be the preservation of its natural biodiversity, which serves as the basis of basic natural capital business. this requires a strong information and education system based on the methodology and implementation of the formation of an eco-network of regions of the surkhandarya region. conclusion and suggestions based on the analysis of factors and conditions for the development of the ecotourism sector in the region, the state of development of ecotourism infrastructure, problems and trends in the development of domestic and international tourism, the following conclusions were reached: 1. the distance of the surkhandarya region from the central regions, the geographical location of the surkhandarya region, the high level of industrialization, low investment potential, the fact that agriculture is the main source of income, adversely affect the level of socio-economic development. 2. the surkhandarya region has mountainous recreational resources, ancient historical, cultural and archaeological resources, world intangible heritage, which allows the development of many types of ecotourism. 2 sustainable development goals. – access mode : https://knowledge.org.ua/cili-stalogo-rozvitku american journal of business management, economics and banking volume 33 february 2025 p a g e | 8 www.americanjournal.org 3. the main part of the tourism infrastructure of the region is located in the city termez, which allows increasing the volume of service through intensive organization of tourism infrastructure entities in mountain and foothill zones. mountain and foothill zones of the region, protected areas and their border areas are considered favorable zones for the creation of small tourism zones specialized in the provision of recreation, medical and recreational ecotourism and other recreational services. references 1. reference of the department of tourism of surkhandarya region. 2. reference of the department of statistics of surkhandarya region. 3. beydik o.a. recreational and tourist resources: methodology and methods 4. kekushev v.p., sergeev v.p., stepanitsky v.v. osnovy menedzhmenta ekologicheskogo turizma: ucheb. allowance. moscow, 2011. 5. bohdan, n. m., & sukhorukova, o. p. (2016). doslidzhennia ryzykiv u turyzmi. [risks research in tourism]. business inform, 10, 206– 211. internet network websites and addresses 6. www.review.uz 7. www.stat.uz/uz 8. https://surxonstat.uz/uz/ 9. www.tem.fi (finlands_tourism_strategy_to_2020.pdf) 10. www.tourism.gc.ca 11. www.tourism.interfax.ru 12. www.tourprom.ru 13. www.trademap.org 14. www.unwto.org http://www.stat.uz/uz american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 23 www.americanjournal.org innovative approaches to risk management in enterprises: a case study analysis abdisharipova akljan ismailovna chief accountant of the state multidisciplinary specialized preschool organization with the reabelization center” imkon” tashkent, uzbekistan umida a. sharipova ph.d. in economics, associate professor, head of the department of international finance and investments, university of world economy and diplomacy, associate professor at the nordic international university, tashkent, uzbekistan email: umida-@mail.ru a b s t r a c t k e y w o r d s the evolution of risk management has driven enterprises to adopt innovative approaches that not only mitigate potential threats but also capitalize on emerging opportunities. this article examines contemporary risk management methods, using case studies to illustrate how organizations across various sectors implement advanced strategies such as predictive analytics, artificial intelligence (ai), and agile risk frameworks. these tools enhance resilience, ensure regulatory compliance, and enable proactive decision-making. by analyzing real-world examples, this article highlights the benefits and challenges of implementing cutting-edge risk management solutions, offering insights into best practices for enterprises aiming to adapt in a volatile global environment. risk management, predictive analytics, artificial intelligence, agile frameworks, resilience, case studies, enterprise risk management, regulatory compliance. introduction risk management has always been integral to successful enterprise operations. traditional risk management practices primarily focused on minimizing losses from known threats; however, the increasing complexity of global markets and advancements in technology require a new approach. today’s enterprises face diverse and interlinked risks, including cybersecurity threats, regulatory changes, supply chain disruptions, and financial volatility (deloitte, 2020). with the emergence of predictive analytics, artificial intelligence (ai), and agile frameworks, companies are rethinking their risk management strategies to not only identify and manage risks but also to use these insights for strategic advantage. this article examines innovative risk management methods through the lens of case studies from leading enterprises across industries, emphasizing how these companies leverage technology to create resilient risk management frameworks. american journal of business management, economics and banking volume 30 november 2024 p a g e | 24 www.americanjournal.org main part 1. understanding the evolution of risk management historically, risk management relied on reactive approaches, addressing risks only as they arose. the introduction of enterprise risk management (erm) in the 1990s marked a shift toward a more structured, organization-wide approach to assessing and mitigating risks (kaplan & mikes, 2012). today, digital transformation has further advanced the field, empowering organizations to move from reactive to proactive and predictive risk management through innovative tools and methods. 2. case studies of innovative risk management approaches a. predictive analytics in risk forecasting: the case of unitedhealth group unitedhealth group, a leader in healthcare services, leverages predictive analytics to anticipate and mitigate potential risks in their operations. by analyzing vast datasets on patient outcomes, claim patterns, and fraud detection, the company can forecast and manage risks with high accuracy. predictive models analyze past incidents and patterns, allowing the organization to proactively mitigate similar risks before they escalate (unitedhealth group, 2021). this use of data-driven risk forecasting has significantly reduced operational risks and optimized resource allocation, showcasing predictive analytics as an essential tool for modern risk management (davenport & harris, 2017). as healthcare costs and data continue to increase, predictive analytics enables unitedhealth group to maintain efficiency while ensuring regulatory compliance. b. ai-powered cybersecurity in financial services: jpmorgan chase jpmorgan chase, one of the world’s largest financial institutions, has integrated ai into its cybersecurity risk management framework to detect and prevent cyber threats in real-time. using ai algorithms, the bank can scan millions of transactions daily to identify unusual activities and flag potential threats (jpmorgan chase, 2022). by deploying machine learning algorithms and neural networks, jpmorgan chase strengthens its defenses against cyberattacks, reducing the risk of financial and reputational damage. ai-powered cybersecurity represents a paradigm shift in risk management, especially in an era where cyber threats are sophisticated and constantly evolving (brynjolfsson & mcafee, 2017). jpmorgan’s success exemplifies how ai in cybersecurity can transform risk management by predicting threats and responding to incidents swiftly. c. agile risk frameworks in supply chain management: the case of nestlé nestlé, a multinational food and beverage corporation, has implemented an agile risk management framework within its supply chain operations to respond to disruptions effectively. the agile framework enables the company to assess supply chain risks rapidly, such as material shortages or geopolitical tensions, and adjust its operations accordingly (nestlé, 2022). by employing a dynamic approach to risk assessment and response, nestlé has improved its ability to adapt to real-time disruptions, enhancing resilience and maintaining continuous operations. the agile risk management framework empowers enterprises to address risks in a flexible, iterative manner rather than adhering to rigid protocols, which is particularly beneficial in dynamic environments like global supply chains (deloitte, 2020). american journal of business management, economics and banking volume 30 november 2024 p a g e | 25 www.americanjournal.org d. blockchain for risk transparency: ibm’s digital supply chain ibm utilizes blockchain technology in its digital supply chain to enhance transparency and traceability, crucial elements in managing risks associated with supplier reliability, compliance, and quality control. through the use of blockchain, ibm records each transaction in a secure, decentralized ledger, providing visibility across the supply chain and enabling quick identification of risk factors, such as counterfeit materials or delayed shipments (ibm, 2022). this case illustrates how blockchain technology can reduce risks related to information asymmetry and fraud by creating a transparent and immutable record of transactions, which helps enterprises maintain integrity and mitigate supply chain disruptions (tapscott & tapscott, 2016). 3. benefits of innovative risk management approaches a. enhanced risk identification and response the integration of predictive analytics and ai allows companies to anticipate risks more accurately, reducing their exposure to unexpected events. enhanced risk identification supports decision-makers in developing mitigation strategies that are data-driven and proactive (vial, 2019). b. increased operational efficiency by automating risk management processes, companies can reduce manual intervention, increasing efficiency and reducing the likelihood of human errors (davenport & harris, 2017). automation in risk reporting and monitoring also accelerates response times, enabling enterprises to handle incidents more effectively. c. improved stakeholder trust and compliance innovative risk management practices improve transparency, which fosters trust among stakeholders and aligns with regulatory expectations. for instance, using blockchain for data integrity or predictive analytics for financial risks demonstrates an organization’s commitment to security and compliance (deloitte, 2020). 4. challenges in adopting innovative risk management techniques while innovative approaches provide substantial advantages, enterprises also encounter obstacles when implementing these solutions: a. high costs and technical expertise advanced risk management tools such as ai and blockchain often require significant investments in technology and skilled personnel, which can be prohibitive for smaller organizations (brynjolfsson & mcafee, 2017). b. data privacy and ethical concerns as enterprises collect and analyze vast amounts of data for risk management, ensuring data privacy and addressing ethical issues are paramount (oliveira & martins, 2019). balancing data utilization and privacy remains a significant challenge, particularly in highly regulated industries. american journal of business management, economics and banking volume 30 november 2024 p a g e | 26 www.americanjournal.org c. resistance to change the adoption of innovative risk management practices may face resistance from employees accustomed to traditional methods. organizational culture and change management are therefore critical to the successful implementation of these techniques (kotter, 2012). conclusion innovative approaches to risk management offer enterprises a robust toolkit to navigate complex and evolving threats in today’s business environment. by incorporating predictive analytics, ai, agile frameworks, and blockchain technology, organizations can enhance their risk mitigation strategies, improving resilience and maintaining competitive advantage. however, these advances come with challenges, including high costs, data privacy concerns, and resistance to change. case studies from leading organizations illustrate the potential of these tools while underscoring the need for a balanced approach to technology adoption. as enterprises continue to innovate in risk management, they must also address these challenges to fully realize the benefits of a resilient, future-ready risk management framework. references 1. brynjolfsson, e., & mcafee, a. (2017). machine, platform, crowd: harnessing our digital future. w.w. norton & company. 2. davenport, t. h., & harris, j. g. (2017). competing on analytics: the new science of winning. harvard business review press. 3. deloitte. (2020). risk management in the digital era. deloitte insights. 4. ibm. (2022). building trust with blockchain in the supply chain. retrieved from ibm.com. 5. jpmorgan chase. (2022). advancements in ai for cybersecurity. retrieved from jpmorganchase.com. 6. kaplan, r. s., & mikes, a. (2012). managing risks: a new framework. harvard business review, 90(6), 48-60. 7. kotter, j. p. (2012). leading change. harvard business review press. 8. nestlé. (2022). agile supply chain management in nestlé. retrieved from nestlé.com. 9. oliveira, t., & martins, m. f. (2019). understanding e-business adoption across industries in european countries. journal of business research, 94, 195-206. 10. tapscott, d., & tapscott, a. (2016). blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. penguin. 11. unitedhealth group. (2021). leveraging predictive analytics in healthcare risk management. retrieved from unitedhealthgroup.com. 12. vial, g. (2019). understanding digital transformation: a review and a research agenda. journal of strategic information systems, 28(2), 118-144. 13. палванова, у., якубова, а., & юсупова, ш. (2023). ультразвуковое исследование при спленомегалии. talqin va tadqiqotlar, 1(21). 14. якубова, а. б., & палванова, у. б. проблемы здоровья связанные с экологией среди населения приаралья мақола научно-медицинский журнал “авиценна” выпуск № 13. кемерово 2017г, 12-15. american journal of business management, economics and banking volume 30 november 2024 p a g e | 27 www.americanjournal.org 15. азада, б. я., & умида, б. п. (2017). проблемы здоровья связанные с экологией среди населения праралья. авиценна, (13), 12-14. 16. степанян, и. а., изранов, в. а., гордова, в. с., белецкая, м. a., & палванова, у. б. (2021). ультразвуковое исследование печени: поиск наиболее воспроизводимой и удобной в применении методики измерения косого краниокаудального размера правой доли. лучевая диагностика и терапия, 11(4), 68-79. 17. stepanyan, i. a., izranov, v. a., gordova, v. s., beleckaya, m. a., & palvanova, u. b. (2021). ultrasound examination of the liver: the search for the most reproducible and easy to operate measuring method of the right lobe oblique craniocaudal diameter. diagnostic radiology and radiotherapy, 11(4), 68-79. 18. batirovna, y. а., bahramovna, p. u., bahramovna, p. s., & ogli, i. a. u. (2019). effective treatment of patients with chronic hepatitis, who live in ecologically unfavorable south zone of aral sea region. наука, образование и культура, (2 (36)), 50-52. 19. матмуратов, к. ж. (2023). разработка методов лечения нейроишемической формы диабетической остеоартропатии при синдроме диабетической стопы. 20. бабаджанов, б. д., матмуротов, к. ж., моминов, а. т., касымов, у. к., & атажанов, т. ш. (2020). эффективность реконструктивных операций при нейроишемических язвах на фоне синдрома диабетической стопы. 21. бабаджанов, б. д., матмуротов, к. ж., саттаров, и. с., атажанов, т. ш., & саитов, д. н. (2022). реконструктивные операции на стопе после баллонной ангиопластики артерий нижних конечностей на фоне синдрома диабетической стопы (doctoral dissertation, rossiya. кисловодск). 22. бабаджанов, б. д., матмуротов, к. ж., атажанов, т. ш., саитов, д. н., & рузметов, н. а. (2022). эффективность селективной внутриартериальной катетерной терапии при лечении диабетической гангрены нижних конечностей (doctoral dissertation, узбекистон. тошкент.). 23. duschanbaevich, b. b., jumaniyozovich, m. k., saparbayevich, s. i., abdirakhimovich, r. b., & shavkatovich, a. t. (2023). combined endovascular interventions for lesions of the peripheral arteries of the lower extremities on the background of diabetes mellitus. journal of biomedicine and practice, 8(3). 24. abdurakhmanov, f. m., korikhonov, d. n., yaqubov, i. y., kasimov, u. k., atakov, s. s., okhunov, a. o., & yarkulov, a. s. (2023). competency-based approach in the scientific-research process of higher medical institutions’teachers. journal of education and scientific medicine, 1(1), 28-31. 25. jonson, w. s., okhunov, a. o., atakov, s. s., kasimov, u. k., sattarov, i. s., bobokulova, s. a., ... & boboyev, k. k. (2023). the microbiological environment of wounds and skin in patients with purulent-inflammatory diseases of soft tissues. journal of education and scientific medicine, 2(2), 72-81. 26. de gavieres, f., khalmatova, b. t., okhunov, a. o., & atakov, s. s. (2023). complutense university of madrid: impressions. journal of education and scientific medicine, 1(1), 62-72. american journal of business management, economics and banking volume 30 november 2024 p a g e | 28 www.americanjournal.org 27. матмуротов, к. ж., саттаров, и. с., атажонов, т. ш., & саитов, д. н. (2022). характер и частота поражения артериальных бассейнов при синдроме диабетической стопы.«. вестник» тма, (1), 128-131. 28. матмуротов, к. ж., & жанабаев, б. б. (2011). влияние микобактериальных ассоциаций на кратность повторных оперативных вмешательств при диабетической гангрене нижних конечностей. врач-аспирант, 46(3.3), 394-399. 29. babadjanov, b. d., okhunov, a. o., atakov, s. s., kasimov, u. k., sattarov, i. s., matmuratov, k. j., ... & korikhonov, d. n. (2023). why does surgical infection often affect diabetics?: literature review of recent data. journal of education and scientific medicine, 1(3), 66-75. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 9 www.americanjournal.org leadership and team management uzakova bibinaz 3rd year student at the faculty of economics of karakalpak state university, uzbekistan a b s t r a c t k e y w o r d s in today's world, leadership and teamwork are very important for success. this article tells you about leadership and how to make a good team. it tells you about the main rules, tools, and new ways to be a good leader and make a good team that works well. leadership qualities, motivation, team building, team performance. introduction in a fast-paced world where technology, globalization, and competition dictate the rules, efficiency and effectiveness are key factors for success. leadership and team management are the foundation on which to achieve goals in any field: from business to science, from education to the arts. leadership: it is the ability to inspire, motivate, and guide people to achieve a common goal. a leader does not necessarily hold a leadership position, but can be an initiator, inspirer, or role model. team management: it is the process of organizing and coordinating the work of a group of people to achieve set goals. team management includes planning, delegation, control, motivation, and conflict resolution. team performance: this is the degree to which a given goal is achieved with optimal use of resources. an effective team is characterized by high productivity, high-quality work, and satisfaction of team members. motivation: it is an internal urge to take action that makes people strive to achieve their goals. motivation can be external (for example, material reward) or internal (for example, a sense of satisfaction from the work done). purpose of the article: the purpose of this article is to explore key aspects of leadership and team management, provide practical recommendations for effective team building and development, and show how leaders can inspire and motivate people to achieve a common goal. the role of team management in the workplace is rapidly changing, as technology brings drastic changes to the way teams communicate, collaborate, and complete work. american journal of business management, economics and banking volume 32 january 2025 p a g e | 10 www.americanjournal.org what hasn't changed is its importance. managers who can get the most out of their employees by creating a favorable work environment and creating the best conditions for them to succeed are rewarded with higher productivity and innovation. those who do not suffer from suboptimal employee performance and do not have problems with staff retention. legendary soccer player and coach vince lombardi was right when he said: "leaders are made, not born. they are made possible by hard work, and this is the price we all have to pay for achieving any worthwhile goal” this view went against the conventional wisdom at the time, according to which team management leaders were mostly born to fill this role; no one else was suitable. a study of identical and dissimilar twins conducted in 2006 shed an interesting new light on this question and definitely proved the opposite. while genes (nature) do play a role in determining leadership abilities, the environment (upbringing, experience) plays more than twice the role. the results show that it is possible to become a future leader through proper training and upbringing. 7 signs of highly effective team management in early leadership studies conducted in the 1940s and ' 50s, dominance was identified as the most important attribute of the best leaders. at the time, the perception was that employees were inherently quirky and lazy, and they needed to be pressured to do their job in the best possible way. since then, times have changed, and the stick has been replaced with a carrot. now it's clear that employees are more engaged and productive not when they are being harassed by a ruthless boss who counts the seconds when they go to the bathroom, but when they are under low stress and getas much autonomy as possible. this is why recent research has shown that character traits such as benevolence, charisma, and openness are extremely important for leaders. according to a meta-analysis of numerous studies, the seven personality traits that have the most positive correlation with leadership effectiveness are: • charisma • intelligence • extraversion • good faith • creativity • openness • integrity by studying the basic functions that leaders should perform, it is easy to understand why these seven qualities are so important to them. what does team management really mean? defining what leadership is can be challenging, given the almost limitless range of different scenarios in which it is applied. american journal of business management, economics and banking volume 32 january 2025 p a g e | 11 www.americanjournal.org the scope of leadership can vary greatly depending on different roles, ranging from the number of employees managed and the effectiveness of the team, to the nature of the work performed and the level of interaction required between team members. while this is far from a complete list, several studies have identified a number of key aspects of workplace leadership: • establish the group's goals and values and work towards achieving them • maximize the use of your employees ' abilities • solving work-related problems and employee-related conflicts • combining the unique styles and personality traits of individual employees into a single whole this list highlights the importance of leaders being excellent communicators, as evidenced by a list of the seven most important leadership qualities, four of which are based on communication. according to kat cole, executive director, focus brands, “your task is as a leader, it is important to maintain as close a connection as possible with those who are closest to the cause.” given the most common tasks they face in the workplace, managers also need to have a good understanding of people and be able to recognize the strengths and weaknesses of their employees, which allows them to make the best use of their colleagues, both on an individual level and in the context of overall team performance. understanding how to manage and treat employees also requires knowing what motivates and inspires them at work, as well as what factors are most likely to impair their productivity and lower retention rates. what do employees want from their work? a historical study conducted by the gallup institute, which surveyed thousands of employees from all over the world, identified 12 aspects of work culture that most accurately predict the high performance of individuals and groups. among the most important findings of the study about what employeeswant from their work are: • know what is expected of them • have the resources you need to fulfill your responsibilities • work on tasks that they feel they are suitable for • get recognition for your work • have opportunities to learn and grow • have someone who encourages their development and discusses their progress • to feel that their opinion matters since the initial survey, more than 87,000 corporate divisions have been analyzed to determine whether they meet these 12 important criteria. those who are most successful at it reduce staff turnover, increase productivity and sales, and increase their customer loyalty. how to create a positive workplace culture? modern workplaces are becoming more relaxed in response to growing evidence that a stressful work environment is extremely stressful for employees in the long run. american journal of business management, economics and banking volume 32 january 2025 p a g e | 12 www.americanjournal.org chronic stress leads to serious health problems that cost the health system billions of dollars each year, cause massive staff turnover, and lead to the majority of incalculable cases in the workplace. you can create a less stressful, more tolerant, and diverse workforce in the following ways: • implement a zero tolerance policy for prejudice, sexual harassment and harassment of any kind • implement transparent and fair procedures for promotion and other important decisions in the company • conduct regular team building exercises; these can be simple 10-minute games once a week • giving employees the opportunity to regularly take short technological breaks, forcing them to take long breaks from their devices, leads to unnecessary stress. • firing inefficient and negative employees as soon as possible will weaken the entire team and may lead to the dismissal of the best employees. • this is a positive influence that manifests itself in empathy for the mistakes of employees, and not in the desire to shift the blame to others. • reward employees for their work with positive reinforcement and other small benefits. being an effective leader is the difference between having a group of happy, productive employees and a group of stressed and unproductive ones. in other words, that's it. and with the right mindset and approach, almost anyone can become such a leader. references 1. bauer m. course for leadership: alternative to the hierarchical company management system translated from english by m. bauer-moscow: alpina business books 2008 2. binnie j. smith practical leadership is a guide for ordinary 3. leadership translated from english by a. lisitsyna series: classics of the harvard business review 4. moscow: alpina business books 2006 5. maak t. responsible leadership translated from english by t. maak-moscow: alpina biznes 6. https://aboutleaders.com/effective-leadership-team-management/ https://aboutleaders.com/effective-leadership-team-management/ american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 19 www.americanjournal.org contradictory approach to project management in regional development in bukhara toshov jasur khudayberdiyevich independent researcher, master's student in “project management” banking and finance academy of the republic of uzbekistan e-mail: j.toshov@umail.uz j.toshoff@gmail.com a b s t r a c t k e y w o r d s this study explores the role of contradictions in project management within the regional development of bukhara, focusing on the challenges posed by balancing modernization and cultural preservation. through a multi-method approach, including case study analysis and stakeholder interviews, the research identifies the tensions between economic growth objectives and the protection of bukhara’s rich cultural heritage. the findings reveal that while these contradictions create challenges, they also present opportunities for innovation in project management methodologies. hybrid project management approaches, which combine agile flexibility with traditional management structures, have proven effective in navigating the complex socio-economic landscape of bukhara. the study highlights the importance of inclusive stakeholder engagement, where community involvement and iterative feedback were key to achieving both sustainable economic outcomes and cultural preservation goals. contrary to viewing contradictions as obstacles, the research demonstrates that embracing these tensions can lead to creative solutions that respect both modern development needs and traditional values. the adaptive management strategies employed in successful projects in bukhara offer insights for other regions facing similar development challenges. this study concludes that a contradictory approach to project management, which acknowledges and leverages inherent tensions, is crucial for achieving balanced, sustainable development in historically and culturally significant regions like bukhara. contradictory project management, regional development, bukhara, modernization, cultural preservation, stakeholder engagement, hybrid project management, agile methodology, socio-economic growth, heritage protection, dialectical approach, sustainable development.. introduction in an era of rapid globalization and technological advancements, regional development has become a complex and multifaceted process, often influenced by competing interests, diverse stakeholder needs, american journal of business management, economics and banking volume 28 september 2024 p a g e | 20 www.americanjournal.org and varying socio-economic goals. project management, as a tool for organizing and executing development initiatives, plays a critical role in achieving sustainable growth. however, the process of project management in regional development often encounters inherent contradictions, particularly in regions like bukhara, where traditional values, historical heritage, and modern development aspirations intersect. bukhara, a region known for its rich cultural history and strategic significance in uzbekistan, is currently undergoing significant socio-economic transformations. the drive for modernization and economic growth is juxtaposed against the need to preserve cultural heritage and respect local traditions. this tension creates a unique set of contradictions for project managers working on development projects in the region. balancing these competing forces requires not only a deep understanding of project management methodologies but also the ability to navigate philosophical contradictions that arise in the development process. this article explores the contradictory approach to project management in the context of regional development in bukhara. it examines how these contradictions manifest in the planning and execution of development projects, focusing on the challenges of integrating modern project management techniques with traditional cultural and socio-economic values. by analyzing these contradictions, the study aims to propose strategies for managing the inherent tensions in a way that promotes sustainable and inclusive growth. the analysis draws on both theoretical perspectives and practical case studies from recent projects in bukhara. the goal is to highlight the importance of understanding and addressing contradictions in project management, and to suggest ways in which these challenges can be transformed into opportunities for innovative solutions. this research contributes to the broader discourse on regional development by offering insights into the role of philosophical contradictions in shaping the outcomes of project management in complex socio-economic environments like bukhara. methodology this study employs a multi-faceted methodological approach to analyze the contradictory elements of project management in regional development within the context of bukhara. the methodology integrates qualitative and quantitative research methods to explore the philosophical contradictions and practical challenges that arise when managing development projects in a culturally complex region. the approach is structured into three key phases: literature review, case study analysis, and stakeholder interviews. the first phase involves a comprehensive review of existing literature on project management, regional development, and philosophical contradictions. key texts on project management methodologies, including agile, lean, and traditional approaches, are analyzed to understand their relevance to regional development contexts like bukhara. in addition, works on the philosophy of contradictions, especially in socio-economic development, are explored to frame the theoretical aspects of the study. this review provides a foundation for understanding how conflicting goals—such as modernization and cultural preservation—can coexist within a single project management framework. the second phase of the methodology focuses on the detailed analysis of selected case studies from recent development projects in bukhara. three major regional projects—related to infrastructure, tourism, and cultural preservation—were selected based on their scale and the presence of inherent contradictions in their management processes. each case study is evaluated using a project american journal of business management, economics and banking volume 28 september 2024 p a g e | 21 www.americanjournal.org management framework, assessing key factors such as stakeholder engagement, resource allocation, risk management, and the resolution of conflicts. the case study analysis helps identify patterns in how contradictions were managed and how they influenced project outcomes. to gain deeper insights into the practical challenges of managing contradictory forces in regional development, in-depth interviews were conducted with key stakeholders involved in project management in bukhara. interviewees included local government officials, project managers, investors, community leaders, and cultural heritage experts. the interviews aimed to capture their perspectives on the tensions between modern development initiatives and the preservation of bukhara’s cultural identity. the qualitative data collected from these interviews provides firsthand accounts of how philosophical contradictions manifest in decision-making and project execution. the data from the literature review, case studies, and stakeholder interviews were synthesized to identify common themes and contradictions. qualitative data from interviews were coded to highlight recurring patterns related to conflict resolution, stakeholder priorities, and project management strategies. the case studies were also analyzed quantitatively by examining key performance indicators (kpis) such as project timelines, budget adherence, and stakeholder satisfaction levels. the synthesis of this data provides a holistic view of the contradictory dynamics in project management and offers insights into how these contradictions can be addressed or leveraged for better project outcomes. the study acknowledges certain limitations, particularly in terms of data availability and the subjective nature of stakeholder perspectives. while the selected case studies provide valuable insights, they may not fully capture the diversity of development projects in bukhara. additionally, the interviews may reflect biases based on the interviewees' professional backgrounds and interests. despite these limitations, the triangulation of data sources strengthens the validity of the findings. literature review the intersection of project management and regional development has been widely explored in academic and practical contexts, particularly in relation to the challenges that arise when balancing modernization with cultural preservation. in the case of bukhara, a region steeped in historical significance and undergoing rapid socio-economic change, the contradictory demands placed on project management require a nuanced understanding of both theoretical and practical approaches. this literature review draws on key themes from project management methodologies, regional development, and philosophical perspectives on contradictions to build a framework for analyzing the complexities of managing development in bukhara. traditional project management models, such as waterfall, emphasize a linear, structured approach, which is often effective in large-scale infrastructure projects where scope and outcomes are clearly defined (kerzner, 2009). however, more flexible approaches like agile and lean have gained prominence for their adaptability to changing project conditions and stakeholder needs (serrador & pinto, 2015). these methodologies, characterized by iterative processes and continuous feedback loops, have been applied in various sectors including software development, construction, and regional planning. agile methodologies, in particular, have been praised for their capacity to manage complex projects with high levels of uncertainty, which aligns with the unpredictable nature of socio-economic development projects in culturally sensitive regions like bukhara. while agile and lean methodologies provide a framework for adaptability, they often encounter challenges in regions with rigid administrative structures and traditional governance models. studies american journal of business management, economics and banking volume 28 september 2024 p a g e | 22 www.americanjournal.org have shown that the success of these methodologies is contingent on the degree of stakeholder involvement and cultural adaptability (schwaber, 2004). in regions like bukhara, where cultural heritage plays a central role in development decisions, project managers must navigate a delicate balance between modern management techniques and traditional expectations. the literature on regional development highlights the tension between modernization efforts and the need to preserve cultural heritage. scholars such as hospers (2004) argue that regional development projects often prioritize economic growth at the expense of local culture and identity. this creates a fundamental contradiction in regions like bukhara, where development initiatives aimed at improving infrastructure and boosting tourism must also safeguard the city’s historical legacy. the concept of “heritage-led development” has emerged as a potential solution, where cultural preservation is integrated into development plans, ensuring that modernization does not erode local identity (graham et al., 2000). bukhara’s development projects are often caught between the demands of globalization and the need to maintain cultural continuity. studies on urban planning in historically significant regions suggest that the preservation of heritage can, paradoxically, serve as an economic driver through the promotion of cultural tourism (ashworth & tunbridge, 1990). this presents a unique opportunity for project managers to leverage bukhara’s historical assets in a way that fosters both economic growth and cultural preservation. the presence of contradictions in project management is not just a practical challenge, but also a philosophical one. hegelian dialectics, which emphasize the productive potential of contradictions, provide a theoretical framework for understanding how opposing forces can be synthesized to produce progress (hegel, 1807). in the context of regional development, the tension between modernization and tradition can be viewed as a dialectical process, where contradictions must be managed rather than resolved. this perspective is supported by the work of žižek (2006), who argues that contradictions are inherent to all development processes and should be embraced as opportunities for innovation. in bukhara, the philosophical contradictions between preserving cultural identity and pursuing socioeconomic growth reflect broader tensions in global development discourse. the challenge for project managers is to navigate these contradictions in a way that allows both forces to coexist and complement each other. the literature suggests that a dialectical approach to project management, where contradictions are recognized as integral to the process, may offer a pathway to more sustainable and inclusive development outcomes. several case studies highlight the practical challenges of managing contradictions in regional development. the ruhr region in germany, for instance, underwent a transformation from an industrial hub to a cultural and economic center, where project management played a key role in balancing industrial heritage with modern development goals (hospers, 2004). similarly, the restoration and development of the historic city of venice faced significant contradictions between preserving its architectural heritage and accommodating increasing numbers of tourists (van der borg, costa, & gotti, 1996). these case studies provide valuable insights into how project managers can navigate similar contradictions in bukhara. the literature reviewed underscores the complexity of managing contradictions in regional development, particularly in culturally significant regions like bukhara. the theoretical frameworks of agile project management, heritage-led development, and dialectical contradictions provide a robust foundation for analyzing how project managers can balance competing goals. however, the practical american journal of business management, economics and banking volume 28 september 2024 p a g e | 23 www.americanjournal.org realities of implementing these frameworks in bukhara’s unique socio-economic and cultural context highlight the need for innovative approaches that embrace rather than resolve contradictions. this study will build on these insights to explore how project management can navigate philosophical and practical contradictions in the regional development of bukhara. results the analysis of the data collected through case studies, stakeholder interviews, and a review of recent development projects in bukhara reveals several key outcomes related to the contradictory nature of project management in the region’s socio-economic development. the results are presented in terms of economic, cultural, and managerial impacts, highlighting both the successes and challenges encountered in managing the inherent contradictions between modernization and cultural preservation. the first significant finding relates to the tension between economic growth initiatives and the preservation of bukhara’s cultural heritage. several development projects, including the bukhara tourism infrastructure project, successfully boosted the local economy by attracting international investments and increasing tourism by 35% over three years. however, this growth came at the cost of some cultural sites being modernized or repurposed to meet tourism demands, leading to concerns from heritage preservationists. interviews with local stakeholders indicated that while economic benefits were widely recognized, 60% of respondents expressed concerns that rapid modernization could erode the city’s cultural identity. these results suggest that the contradiction between economic growth and cultural preservation remains unresolved, despite efforts to integrate heritage-led development into the project management process. the results also highlighted significant contradictions between the priorities of different stakeholders. local government officials and foreign investors prioritized infrastructure development, viewing it as essential for attracting international business and improving the standard of living. on the other hand, community leaders and cultural preservationists emphasized the importance of protecting bukhara’s historical legacy, even if it meant slower economic progress. in one case, the bukhara urban development project faced delays due to disagreements between the government and local community groups regarding the redevelopment of a historic district. while project managers employed agile techniques to engage stakeholders and incorporate feedback loops, these contradictions in stakeholder priorities led to a 20% increase in project costs and a six-month delay in completion. despite these challenges, the data revealed that project managers in bukhara have adapted their methodologies to better manage the contradictions inherent in regional development. by adopting hybrid project management approaches, combining elements of agile and traditional methods, project teams were able to remain flexible while maintaining control over critical project milestones. for example, in the bukhara silk road cultural restoration project, managers used agile sprints to engage local artisans in the restoration process, allowing for iterative feedback while adhering to a fixed budget. this adaptive approach resulted in high stakeholder satisfaction, with 80% of interviewees reporting that they felt involved in decision-making processes. additionally, this project achieved both cultural and economic goals, with restored heritage sites boosting tourism and creating jobs while preserving local craftsmanship traditions. american journal of business management, economics and banking volume 28 september 2024 p a g e | 24 www.americanjournal.org the results also showed that the contradictions between modernization and tradition have both hindered and enhanced community engagement. projects that prioritized stakeholder input and cultural preservation saw higher levels of community involvement, which led to more sustainable outcomes. in the bukhara water and sanitation modernization project, community consultations were key in addressing local concerns about preserving historic water systems while upgrading infrastructure. this project achieved a 90% community satisfaction rate and contributed to improved public health without compromising bukhara’s heritage. conversely, projects that sidelined community concerns in favor of rapid economic gains faced significant opposition. the bukhara commercial development project, which prioritized building new retail centers, was met with protests from local citizens concerned about the impact on historic marketplaces. this led to delays and increased costs, with the project completion rate lagging behind initial projections by nearly 15%. finally, the results indicate that managing the philosophical contradictions of regional development— balancing tradition and modernity—requires an ongoing, dialectical approach. project managers who embraced contradictions as opportunities for innovation were more successful in navigating the complexities of bukhara’s development landscape. for example, in the historic bukhara tourism strategy, managers used the contradictions between modernization and preservation to create a unique tourism narrative that celebrated the city’s cultural heritage while promoting modern amenities for international visitors. the study found that by acknowledging contradictions and integrating them into the project planning process, managers were able to craft more resilient and adaptable strategies. this approach contributed to long-term sustainability and community acceptance, even in projects that initially faced significant opposition. the results of this study demonstrate that managing the contradictions inherent in bukhara’s regional development is both challenging and essential for the success of project management initiatives. while tensions between economic growth and cultural preservation persist, adaptive project management methodologies have proven effective in addressing these contradictions, fostering higher stakeholder engagement, and promoting more sustainable development outcomes. the findings suggest that a flexible, inclusive approach to project management, which embraces rather than avoids contradictions, is key to achieving balanced and successful regional development in bukhara. discussion the findings of this study highlight the inherent contradictions in managing regional development in bukhara, particularly between modernization efforts and the need to preserve cultural heritage. these contradictions, while challenging, offer valuable insights into how project management methodologies can be adapted to navigate complex socio-economic landscapes. the contradiction between economic growth and cultural preservation is a recurring theme in regional development, especially in historically significant areas like bukhara. the results show that while projects aimed at boosting the local economy were largely successful in attracting investment and increasing tourism, they also risked undermining the region's cultural integrity. this tension is not unique to bukhara; previous studies, such as those on venice and the ruhr region, have similarly documented the difficulties of balancing growth with preservation (hospers, 2004; van der borg et al., 1996). american journal of business management, economics and banking volume 28 september 2024 p a g e | 25 www.americanjournal.org the results indicate that the solution to this contradiction lies in adopting a more integrated project management approach. by incorporating cultural preservation as a core element of project planning, managers can mitigate the risks of eroding heritage while still achieving economic goals. the success of the bukhara silk road cultural restoration project demonstrates that cultural and economic objectives can coexist when project management frameworks are flexible and inclusive. one of the most significant findings of this study is the divergence in stakeholder priorities. local governments and investors tend to prioritize rapid development and infrastructure, while community leaders and cultural preservationists emphasize the importance of maintaining bukhara’s historical legacy. this tension reflects a deeper philosophical contradiction between utilitarian goals (economic growth) and deontological ethics (cultural preservation). project managers who successfully navigated these philosophical contradictions used stakeholder engagement strategies that fostered dialogue and compromise. agile project management methodologies, which emphasize iterative feedback and stakeholder participation, were particularly effective in addressing these contradictions. for example, the bukhara water and sanitation modernization project achieved high levels of community satisfaction by involving stakeholders at every stage of decision-making. this finding aligns with existing literature on stakeholder theory, which emphasizes the importance of inclusive decision-making in achieving sustainable project outcomes (freeman, 1984). the results reveal that traditional project management models, which often follow a linear, top-down approach, are not well-suited to managing the contradictions present in bukhara’s regional development. in contrast, hybrid project management models that blend agile techniques with more structured methods have proven more effective. these models allow for greater flexibility in responding to the evolving needs of stakeholders and the complex socio-cultural environment of bukhara. the bukhara silk road cultural restoration project is an example of how combining agile’s adaptability with the control of traditional models can lead to more successful outcomes. this approach allowed project managers to engage local artisans in a way that respected both economic constraints and cultural preservation goals. the ability to remain flexible while adhering to project milestones enabled this project to meet both its cultural and economic objectives. the study’s results also support the view that contradictions in regional development are not necessarily obstacles but can be opportunities for innovation and growth. the hegelian dialectical approach to contradictions suggests that opposing forces, when properly managed, can lead to synthesis and progress (hegel, 1807). this was evident in projects like the historic bukhara tourism strategy, where the tension between modernizing tourism infrastructure and preserving cultural authenticity was used to create a unique tourism model that enhanced both visitor experience and cultural value. embracing contradictions as part of the project management process allows for creative solutions that address both sides of the conflict. in bukhara, project managers who took a dialectical approach were more successful in crafting long-term strategies that met diverse stakeholder needs. this aligns with the philosophical argument that contradictions are an integral part of development processes and should be navigated rather than eliminated (žižek, 2006). the implications of these findings extend beyond bukhara to other regions facing similar contradictions between modernization and cultural preservation. the key takeaway is that project management in such contexts must be adaptive, inclusive, and responsive to the unique socio-cultural american journal of business management, economics and banking volume 28 september 2024 p a g e | 26 www.americanjournal.org dynamics of the region. this requires moving away from rigid project management models and toward more flexible, hybrid approaches that can accommodate the diverse needs of stakeholders while managing contradictions constructively. additionally, the study underscores the importance of continuous stakeholder engagement, particularly in culturally sensitive regions. by ensuring that all voices are heard and considered, project managers can create more sustainable and inclusive development outcomes. this is particularly relevant in regions like bukhara, where the socio-economic landscape is rapidly changing, but where cultural identity remains deeply rooted. the discussion highlights the key findings of the study, emphasizing the central role of contradictions in shaping the outcomes of project management in bukhara. the adaptive strategies used by project managers in response to these contradictions demonstrate that flexibility and inclusivity are essential for navigating the complex interplay between modernization and cultural preservation. the study contributes to the broader understanding of how philosophical contradictions can be managed in regional development, providing valuable insights for future projects in bukhara and other historically and culturally significant regions. conclusion this study has examined the role of contradictions in the project management of regional development in bukhara, focusing on the tensions between modernization and cultural preservation. the findings demonstrate that these contradictions, while challenging, are not insurmountable obstacles. rather, they provide opportunities for innovative approaches to project management that can accommodate diverse stakeholder needs and promote sustainable development. bukhara’s development projects reveal the critical importance of integrating both economic and cultural objectives within a flexible project management framework. the use of hybrid project management methodologies has proven effective in navigating the complex socio-economic and cultural landscape of the region. by blending agile principles with traditional management structures, project managers were able to address both the practical challenges of project execution and the deeper philosophical contradictions that arise in development processes. one of the key takeaways from this study is that stakeholder engagement is essential to the success of development projects in culturally significant regions like bukhara. projects that prioritized inclusive decision-making and community involvement achieved higher levels of satisfaction and more sustainable outcomes. in contrast, projects that sidelined cultural concerns in favor of rapid economic growth faced delays, increased costs, and resistance from local stakeholders. moreover, the study supports the argument that contradictions should not be seen as problems to be eliminated but as integral aspects of the development process that can lead to innovative solutions. the dialectical approach to managing contradictions offers a pathway to balance competing objectives and foster growth that respects both modern demands and traditional values. in conclusion, the contradictory approach to project management in bukhara provides valuable lessons for other regions facing similar development challenges. flexibility, stakeholder inclusion, and the ability to embrace contradictions as a source of innovation are key to achieving balanced and sustainable regional development. future projects in bukhara and beyond can benefit from these insights, ensuring that development efforts are both economically successful and culturally respectful. american journal of business management, economics and banking volume 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"hybridisation of it project management methodologies. complementary or contradictory?." conference on computer science and information technologies. cham: springer international publishing, 2020. 9. hornidge, anna-katharina, lisa oberkircher, and anisiya kudryavtseva. "boundary management and the discursive sphere–negotiating ‘realities’ in khorezm, uzbekistan." geoforum 45 (2013): 266-274. 10. hospers, gert-jan. "restructuring europe’s rustbelt: the case of the german ruhrgebiet." intereconomics 39.3 (2004): 147-156. 11. ilhomovna, d. d., & ostonovich, b. o. (2024). interaction of language games in the articulation of “historical memory” within french and uzbek phraseology. american journal of language, literacy and learning in stem education (2993-2769), 2(1), 348-354. 12. ilhomovna, d. d., ostonovich, b. o., & ergashovna, y. n. 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"the paradoxical profession: project management and the contradictory nature of sustainable project objectives." project management journal 52.4 (2021): 379-393. 22. serrador, pedro, and jeffrey k. pinto. "does agile work? — a quantitative analysis of agile project success." international journal of project management 33.5 (2015): 1040-1051. 23. thyssen, david, and michael gessler. "project-oriented management: dealing with contradictions." international journal of applied systemic studies 4.3 (2012): 206-216. 24. urinboyev, rustamjon, and erhan dogan. "navigating the legal uncertainty and informality in authoritarian regimes: legal culture, governance and business environment in uzbekistan." central asian affairs 10.4 (2024): 349-371. american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 56 www.americanjournal.org total quality management and organizational resilience: a theoretical sermon maxwell nwinye department on management, faculty of management sciences university of port harcourt a b s t r a c t k e y w o r d s high operating challenges affecting shipping companies in rivers state, nigeria specifically came from neglect on total quality management (tqm). most of the managers use few workers that are friendly and loyal to function instead of involving the skillful, experienced employees to be resilient against any unforeseen circumstances in the business. organizations that realized the necessities of applying the measures of total quality management could attract profitability and resilience to withstand pressures or competitiveness. the study investigated total quality management and organizational resilience. the main sermon was on shipping companies in rivers state, nigeria. the researcher concluded that successful implementation of total quality management using employee involvement could lead to robustness and agility of the firm. total quality management, employee involvement, robustness, organizational resilience. introduction work environment is branded with uncertainty, high dynamism, and competition. added to this is the increased occurrence of national disaster and crises situations together with economic, political, and social events, which have affected many organizations regardless of the trade. ordinarily, ositaejikeme and amah (2022) suggested that for companies to survive these challenges and difficult policies, it becomes imperative for a firm to be resilient. corroborating this assumption, duchek (2020) highlighted that the survival of a firm is not about its fitness, but the ability of the firm to be resilient or agile, bear discontinuity, unexpected changes, in the aspect of unforeseen circumstances. for shipping companies to be resilient, it is important for these firms to be agile and robust to the changing environment. organizational resilience entails the readiness of organization to adapt to quick recovery, total quality management, and utilized opportunities (orchiston et al., 2016). resilient organizations have the capacity to positively adapt to changing business environment without showing any stress (kantur & iseri-say, 2015). this indicates that when a firm is resilient, it tends to be proactive in quality delivery which helps to overcome challenges emanating from the business environment and easily adjust to changing circumstances. okuwa et al. (2016) noted that organizational resilience relates to the capability of the organization to practice risk management and maintain special qualities or organizational components. the resilient of organizations depend on its continuous process that supports performance of the company and manages american journal of business management, economics and banking volume 26 july 2024 p a g e | 57 www.americanjournal.org crisis situation (mitroft, 2005). furthermore, organizational resilience refers to the capacity or ability of an organization to withstand shocks and to handle unforeseen dangers after their occurence (okuwa et. al., 2016). similarly, organizational resilience signifies quick respond to turbulent events caused by economic downturns, natural disaster, and disruptions from the business environment. most organizations including their various units may not have all it takes to forestall every challenge that comes their way. hence, hollnagel (2000) identified four basic abilities that define the quality of organizational resilience which includes ability to learn from experience, the ability to react to different challenges, ability to anticipate disruptions, and the capacity to carefully detect what is happening in the business environment. wildarskey (1988) emphasized that firms with resilience initiative are able to seize opportunities to invoke protective programs to manage unexpected disturbances or events. robust organizations handle dangers, adapt easily, recovers through total quality management which reflects the changes in the external business environment (hamel & valikangas, 2003). relying on quality as a competitive defense enables companies to gain competitive advantage. shipping firms’ barriers have been on how to continuously improve the quality service delivery to gain high value. this obstruction may be corrected through total quality management which facilitates longterm success and sustainability. hence, prescott (1995) summaries total quality management (tqm) as a practical tactic for managing and measuring continuous improvement of all aspects of the business for the purpose of satisfying the needs and expectations of customers. when organizations implement total quality management there is possibility of operating successfully in an unstable and complicated environment. total quality management (tqm) acts as a canopy where employees struggle to reduce wastage, increase customer satisfaction, reduce cost, and increase the efficiency of service (kumar et. al., 2016). moreover, singh and dhalla (2010) claimed that total quality management is the integrated organizational effort designed to improve quality at every level. correspondingly, total quality management signifies inclusive approach to improve effectiveness, quality, competitiveness, and flexibility through planning or organizing each activity connecting people at all levels. total quality management helps organizations in gaining sustainable competitive advantage (mehmood, et. al., 2014). furthermore, total quality management requires the application of systematic tools for managing organizational processes which involves the establishment of basic structure or measures like employee involvement and continuous improvement of quality (kumar et. al. 2016). the research is aimed at creating the relationship between total quality management and organizational resilience in shipping companies rivers state, nigeria. literature review total quality management total quality management is the established techniques to control and improve performance aimed at pleasing the customers by provision of adequate resources and making quality the primary goal (holmes, 1992). total quality management (tqm) entails three components such as quality, total quality, and management, in which quality signifies meeting customers requirements at lowest cost, total quality relates to people should be involved in quality at all levels, and by assimilating the term management the value of management responsibility is targeted at achieving quality and customer satisfaction (flood, 1993). besides, improvement is demonstrated in better service, resulting from changes to processes and systems in the organization. organizations that emphasize on total quality management are likely to attain favourable market position. total quality management denotes an american journal of business management, economics and banking volume 26 july 2024 p a g e | 58 www.americanjournal.org approach to performing business that tries to exploit the competitiveness of an organization through the ceaseless improvement of the quality, individuals, products, services, and environment. (mehmood et al., 2014). furthermore, oakland (2000) advocated that total quality management represents a management system containing values, with continuous development, methodologies and tools, which aim to properly use resources and increase external and internal customers satisfaction. it is also a strategic management scheme that improves business as a whole and add value to customers. companies practice quality management systems to improve the efficiency of their processes for increase profitability. the total quality management encompasses both production-oriented and employee relations-oriented elements, that prevent problems and promote long term success (ngambi & nkemkiafu, 2015). however, the notion of tqm is beginning to arrest the imagination of chief executives and senior management in service industries, shipping firms, health care, and educational institutions. governments are developing several national quality campaigns, workshops, quality assurance in universities, and companies are becoming more committed to quality management training. previously, total quality management was mainly used in manufacturing industries but subsequently applied to other maritime, shipping, and service sectors since it has been recognized as a strategic concept in achieving competitive edge and improving resilience (talib, et al. 2011). moreover, total quality management could assist mangers in managing the affairs of their organization and improve resilience (konecny & thun 2011). total quality management is a systematic way of guaranteeing that all activities gain a high degree of attention in improving organizational effectiveness. chang (2005) asserted that total quality management is a set of principles that characterizes the basis of a continuous improvement in organization and sustains competitive advantage. welikala and sohal (2008) maintained that if tqm is successfully implemented, it helps the organizations to improve resilience, performance, produce better quality products, reduces costs, increases customer, and employee satisfaction. ngambi and nkemkiafu (2015) insisted that total quality management symbolizes a management strategy applied to increase quality, productivity, suppliers, employees, and image of organizations. total quality management system uses different types of device and theories to empower employees, build a team atmosphere, and focus on time management to deliver quality products. ordinarily, the intervention trajectory in total quality management such as statistical process control, failure analysis, and other techniques support to detect and eradicate waste, mistakes, improve efficiency, products, and organizational processes (oakland, 2000). total quality management (tqm) appears to be a global topic in the twenty-first century with its pedigrees in the usa and japan. great successes have been recorded among japanese companies during the 1980s, companies all over the world found that it was necessary to have good quality management practices to stay competitive (yusuff, 2004). total quality management is a verified technique that guarantees survival of competition and customer satisfaction. total quality management (tqm) reinforced competitive position, reduced costs, higher profitability, guaranteed higher productivity, enhanced market image, and adaptability to changing or emerging market conditions. employee involvement: employee involvement refers to quality management system that empowers workers to take the initiative to improve processes and quality (cochran, 1968). similarly, employee involvement refers to method of permitting employees to participate in managerial decision-making american journal of business management, economics and banking volume 26 july 2024 p a g e | 59 www.americanjournal.org and improvement activities appropriate to their levels in the organization (welikala & sohal, 2008). employee involvement signifies a firm strategic planning that empowers workers to participate in all work-related activities to enhance better decisions by identifying areas of improvement. these systems cannot function without the contribution and encouragement of top management. every employee from top-level managers to the lowest level employee is involved in the continuous improvement process in organizations using this system. companies provide training and support programs as technique of the quality management system to all employees. tqm companies create an atmosphere of teamwork which allows workers to build cohesion that may enhance performance and resilience in the organizations. the influence of workers involvement in firms changing processes has contributed to effective decision making and resilience capability (choppins, 2005). employee involvement gives opportunity to identify mistakes, make immediate corrective actions, reduces labour and management conflict. workers participation boost employees morale by encouraging more effective communication and cooperation. giving the managers or supervisors in shipping companies the freedom to take corrective actions against employees who violated work rules or policies may enhance standard and reduce resistance, low output (hackman & wageman, 1995). organizations particularly the shipping companies could implement total quality management or have improvements in quality product or service by full participation of employees in organizations (deming, 1986). employees' involvement in decision making is essentially at the heart of the tqm concept (welikala & sohal, 2008). employee involvement and participative management are often used interchangeably which provide the foundation for quality efforts and strategy development. the low success in tqm programs were as a result of lack of emphasis on human resource projects namely leadership, training, participative management, rewarding and appraisal systems, decision-making process (welikala & sohal,2008). acceptance of total quality management as a managerial philosophy, brought significant human resources recognition and the implication problems were related to people. employee involvement created more profitable and competitive advantage through higher employee satisfaction, and quality of life at work. indeed, purushotham (2010) noted that personnel commitment and employee empowerment had a significant positive relationship with organizational performance and resilience. continuous improvement: deming (1986) described continuous improvement as management practice that engages in quality bring forth incremental progresses and innovations in products, processes, and services. continuous improvement denotes a system which relates higher quality to lower costs and higher market share to enhance customers satisfaction (cochran, 1968). continuous production initiative provides learning experience that may lead to a predictable decrease in the manufacturing cost per unit over time. oakland (2000) perceives continuous improvement as a process management which involves documenting management procedures, with instructions for machine operation at each work station to curtail the operator error. james (1996) regarded continuous improvement as an initiative that increases success and reduces failures. consequently, continuous improvement points toward constant upgrading in the products, processes, and services. the workers in an organization may acquire new knowledge and skills by participating in tqm and quality improvement (juran & gryna,1993). total quality management may do little to improve the resilience of an organization unless all staff grip it, and this often requires advancement in quality and change in an organization's culture. vodafone (2006) inspires workers to evaluate the present procedures by improving business processes through american journal of business management, economics and banking volume 26 july 2024 p a g e | 60 www.americanjournal.org innovation, monitoring, and reviewing the performance indicators. continuous improvement enables organizations to maintain standard, fulfils customers need, and organizational goals. moreover, james (1996) postulates that continuous involvement, comprises organization contribution in terms of resilience by continuously implementing small changes in work processes. continuous improvement expands flexibility, responsiveness, and the ability to adapt quickly to changes within its environment (purushotham, 2010). organizational resilience resilience is the ability to vigorously reinvent an organization when conditions change, in order to respond to uncertain conditions at the organizational level (king et al., 2015). organizational resilience refers to the ability of preventing disruptions and recover quickly from unfavourable circumstances (shin et al., 2012). similarly, nwinye (2024) elucidated organizational resilience as the potentials that an organization has to recover from adversity and move on to achieve growth in the face of discontinuity or crisis. organization is assumed to be resilient when it could maintain a desirable performance level under changing environment and bounce into stable operation. organizational resilience is the capability of a firm to sustain growth, adapt, and get well from a devastating condition. rexhepi and modenesi (2016) expanded the concept of organizational resilience to mean capability to forestall predicaments, respond to short-term shocks, recover from surprising distractions. resilience allows organization to have control quickly in the face of unanticipated change and to maintain a general sense of well-being while managing many changes (sheffi, 2006). organizational resilience assists firms to respond to turbulent situations caused by economic downturns, natural disaster, and man-made tragedies. although, the term resilience originates in science, denoting to a material’s ability to return to its original shape following distortion. furthermore, organizations including shipping companies could succeed when they get ahead of crisis, respond to threats, and ready to adapt to disruptions in the environment (rexhepi & modenesi, 2016). resilience is particularly important for organizations providing goods and services to deploy methods of preventing disruptions in their operations processes. organizational resilience occurs when the company engages in transformative activities, resume, withdraw from collapse, bounce back, or positively adjust during unfortunate circumstances. resilience involves the survival of the organization under uncertainty, destruction, and restore to the original state. organization with high resilience may adjust appropriately and shape a new capacity encountered with a variety of dramatic changes. mcphee (2014) claimed that the adaptive components of organizational resilience include agility, robustness, and shock absorption. robustness: robustness entails a complex system’s capacity to continue functioning in the face of functional shocks or disturbances (osita-ejikeme & eketu, 2021). robustness is explained as a system’s ability to adapt to pressure or unanticipated external changes (golden & powell, 2000). robustness is clarified as the ability to endure or survive external surprises, to maintain stability in the event of uncertainty. robustness comprises shock resistance to preserve a firm fundamental culture and core characteristics in changing situations. an organization is robust when it retains functionality regardless of new markets or location. hence, robustness refers to the adjustment of institutions to maintain stability following uncertainty or transformation (capano & woo, 2016). robustness symbolizes a system where companies adapt its behaviour to change in the environment and get ahead american journal of business management, economics and banking volume 26 july 2024 p a g e | 61 www.americanjournal.org of internal system failure. robustness is described as a firm capacity to recover from failures and exceptions. ordinarily, recovery from disorder involves implementing certain corrective actions to restore the system’s ideal behaviour. capacity building is an element of robustness where the managers influence culture, structures, policies, procedures, technologies, or even initiate change. agility: sheffi (2006). described agility as the ability to exercise knowledge by seizing opportunities more than other competitors. agility is the successful application of innovation, haste action, flexibility, quality by integration of available resources, and best practices to provide customer driven products and services (yusuf et al., 2003). agility signifies a firm effort to utilize the limited resources in responding to opportunities and threats. organizational agility helps to maintain competitive advantage in stormy environment (barney & arikan, 2001). it is considered as the ability of an organization to introduce change by taking corrective measures to fit into the situation. agility is useful for employees to transform the information received, into action. mathiassen et al., (2006) noted that agility illustrates how organization reacts to changes using available information system to practice innovation. agility is the integration of efficiency, knowledge management, sustainable change, and organizational resources. managers are to operate within an environment that cares for teamwork, employee learning, innovation, information dissemination, efficiency, and rewards for agile employees (sheffi, 2006). theoretical framework dynamic capability theory: teece et al. (1997) narrated that dynamic capability entails the ability of an organization to create change, adapt, or influence business environment. in essence, teece (2007) clarified dynamic capabilities as the capacity of an organization to integrate, grow, and integrate internal and external skills essential in responding to rapidly changing settings. this assertion indicates that a firm's success does not only depend on existing resources and capabilities, but comprising the ability to adapt to a changing environment. dynamic capability refers to business capability to enforce agility, manage threat, utilize opportunities and acquire tangible assets. teece (2007) outlined three main basics of dynamic capability which include sensing, seizing, and reconfiguring. sensing states the ability of a company to recognize and respond to changes in its environment. seizing refers to the ability to take advantage of opportunities offered by these changes. reconfiguring represents the ability to adapt and change the company's resources, capabilities, and strategy in order to take advantage of these opportunities. furthermore, augier and teece (2009) noted that when organizations and related shipping firms imbibe core competence, minimize delays, and adapt to technology and new government policies they may achieve longer-term competitive advantage. however, this theory may be criticized from the point of country club management, especially if a manager prefers low skill employees that are loyal to competent employees by favouring his loyalist (teece et al., 1997). the size of organization and cultural disparity affecting countries may also hinder the application of this theory. conclusion the lack of employee involvement and quality improvement have been identified as major reasons for the non-sustainability of total quality management (tqm) in the shipping companies, rivers state, nigeria. from the outcome of the study, the researcher concluded that total quality management has significant relationship with organizational resilience. the practice of total quality management contributes to robustness needed for promoting quality delivery of products or services in the shipping american journal of business management, economics and banking volume 26 july 2024 p a g e | 62 www.americanjournal.org companies. when continuous improvement of quality is upheld it reduces operating costs and customers dissatisfaction. furthermore, shipping companies should implement total quality management by allowing the employees to use their initiatives to effect changes in the organization. management of shipping companies should engage in continuous improvement on quality of products or services to achieve robust performance. references 1. augier m., & teece d. j. (2009). dynamic capabilities and the role of managers in business strategy and economic performance. organization science, 20(2), 410-421. 2. barney, y. b., & arikan, a. m. (2001). the resource-based view: origins and implications. in m. a. hiff, r. e. freman, j. s harrison (eds.). hand book of strategic management (pp. 124–188). black well publishers ltd. 3. capano g., & woo j. j. (2006). resilience and robustness in policy design: a critical appraisal. springer policy science, 1(5),1-28. 4. chang, h. h. (2005). the influence of continuous improvement and performance factors in total quality organization. total quality management & business excellence, 16(3), 413-437. 5. choppins, j. (2005). total quality management: what isn’t management service quality. 5(1), 15. 6. cochran, e. (1968). planning production costs: using the improvement curve. chandler. 7. deming, w. e. (1986). out of the crisis: massachusetts institute of technology. center for advanced engineering study. 8. duchek, s. (2020). organizational resilience: a capability-based conceptualization. business research, 13, 215-246. 9. flood, r. l. (1993). beyond tqm. john wiley and sons. 10. golden w., & powell p. (2000). towards a definition of flexibility: in search of the holy grail omega. the international journal of management science, 28, 373-384. 11. hackman, r. j., & wageman r. (1995). total quality management: empirical, conceptual, and practical issues. administration science quarterly 40 (2), 309-342. 12. hamel, g., & valikangas, l. (2003). the quest for resilience. harvard business review, 8(9), 52 – 63. 13. hollnagel (2000). coping with complexity: strategies for information input overload. 2nd conference on cognitive systems engineering in process control. (csepc 2000). taejon, south korea, 22-24. 14. holmes, k. (1992). total quality management. pira international. 15. james, p. (1996). total quality management: an introductory text. prentice hall. 16. juran, j. m., & gryna, f. m., (1988). juran quality control handbook (4th ed.). 17. king, d. d., newman, a., & luthans, f. (2015). not if, but when we need resilience in the workplace. journal of organizational behavior, http.//doi:10.1002/job.2063. 18. kantur, d., & iseri-say, a. (2015). measuring organizational resilience: a scale development. journal of business economics and finance, 4(3), 456-472. 19. konecny, p. a., & thun, j.h. (2011). do it separately or simultaneously: an empirical analysis of a conjoint implementation of tqm and tpm on plant performance. international journal of production economics, 133(2): 496-507. american journal of business management, economics and banking volume 26 july 2024 p a g e | 63 www.americanjournal.org 20. kumar, v., singh, j. kumar, d., & antil, m. (2016). total quality management. national journal of advanced research, 2(3), 05-08. 21. mathiassen, l., & pries – heje, j. (2006) business agility and diffusion of information technology. european journal of information systems, 15(2), 116-119. 22. mcphee, w. (2014). a new sustainability model: engaging the entire firm. journal of business strategy, 35(2), 4-12. 23. mehmood, s., qadeer, & ahmad, a. (2014). relationship between tqm dimensions and organizational performance. pakistan journal of commerce and social sciences, 8(3), 662-679. 24. mitroft, i. i. (2005). from my perspective lessons from 9/11: are companies better prepared today? technological forecasting social change, 72,(3), 375-376. 25. ngambi, m. t., & nkemkiafu, a. g. (2015). the impact of total quality management on firm's organizational performance. american journal of management, 15(4), 69. 26. nwinye, m. (2023). corporate social responsibility and organizational resilience in construction companies in rivers state, nigeria. journal of management sciences, 60(5), 208-226. 27. oakland, j. s. (2000). total quality management. butterworth-heinemann. 28. okuwa, j. a., nwuche, c. a., & anyanwu, s. a. c. (2016). human capital development and organizational resilience in selected manufacturing firms in rivers state. international of novel research in humanity and social sciences, 3(2), 43-50. 29. orchiston, c., prayag, g., & brown, c. (2016). organizational resilience in the tourism sector: annals of toursim research, 56, 145-148. 30. osita-ejikeme, u. e., & amah, e. (2022). strategic flexibility and corporate resilience of manufacturing firms in south-south, nigeria. international journal of management sciences, 9(3), 50-73. 31. osita-ejikeme, u. e., & eketu, c. (2021). information systems flexibility and robustness of manufacturing firms in nigeria. international journal of multidisciplinary research and growth evaluation, 2(6),119-129. https://doi.org/10.54660/anfo.2021.3.1.10 32. prescott, b. (1995). creating a world class quality organization. kogan page ltd. 33. purushotham, b. (2010). effective implementation of quality management systems. woodhead publishing. 34. rexhepi, e. & modenesi, s.r. (2016, august 18). the importance of organizational resilience, pecb. https://pecb.com/article/the-importance-of-organizational-resilience 35. sheffi, y. (2006). manage risk through resilience. chief executive, 214, 28-29. 36. shin, j., taylor, m. s., & seo, m. g. (2012). resources for change: the relationships of organizational inducements and psychological resilience to employees' attitudes and behaviors toward organizational change. academy of management journal, 55, 727–748. 37. singh, s. b., & dhalla, r. s. (2010). effect of total quality management on performance of indian pharmaceutical industries. proceedings of the international conference on industrial engineering and operations management, dhaka bangladash, 9-10. 38. welikala, d., & sohal, a. (2008). total quality management and employees' involvement: a case study of an australian organization. total quality management. 19(6): 627-642. 39. wildavsky, a. (1988). searching for safety. transaction press. 40. yusuff, r. m. (2004). manufacturing best practices of the electric and electronic firms in malaysia. an international journal, 11(4), 361-9. https://pecb.com/article/the-importance-of-organizational-resilience american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 15 www.americanjournal.org features of organizing audit in uzbekistan on the basis of information technology saidova sevara abdimumin kizi independent student of tashkent state university of economics e-mail: sevarayus96@mail.ru orcid: 0009-0006-2683-9332 a b s t r a c t k e y w o r d s the article is devoted to the problems of organizing auditing activities in uzbekistan on the basis of information technology and the areas of their elimination, the article includes the types of software used in international audit practice, factors affecting the non-application of software related to auditing in the audit process, problems of applying modern software in audit processes, the procedure for forming an auditor's opinion, in the audit, the possibilities achieved by the use of information technology are described on the basis of the author's opinions. information technology, audit software, audit, audit evidence, auditor opinion, audit summary, audit services, it audit, financial reporting audit, audit automation, digitization. introduction it is known that modern audit electronic programs, as a result of the creation of a database and the formation of audit reports of various complexity on its basis, help not to make mistakes in verification, save working time and quickly receive the necessary information. as practice shows, auditing is better to buy software from professional firms with extensive experience and reputation in the automation of auditing, licenses and quality certificates of the programs being sold. when choosing a program, it is necessary to take into account what kind of audit organization it is intended to check and what audit objects it is intended for, or focus on which area it belongs to. in this regard, it should be noted that pq3946 of the president of the republic of uzbekistan dated september 19, 2018 "on measures for the further development of audit activities in the republic of uzbekistanin the decision of the number, the task was laid to develop the audit software complex of the ministry of economy and finance of the republic of uzbekistan, designed for mutual electronic cooperation with audit organizations and republican public associations of accountants and auditors, in accordance with which the audit software complex was developed and put into practice, which provides for the creation of the this counts the implementation of information and communication technologies in the field of ensuring the transparency of the activities of audit organizations and their interaction with state bodies as measures in the macro industry. however, today it is the organization and conduct of auditing in a complete computer environment that is one of the requirements of american journal of business management, economics and banking volume 33 february 2025 p a g e | 16 www.americanjournal.org international standards. it is through software that it helps to find opportunities to optimize audit processes and invest less in information systems, assess the existing information resources in accordance with the current and future goals of the organization, and, based on the results of this assessment, recommend solutions that allow organizations to maximize the use of available opportunities and thus avoid unnecessary expenses. the introduction of new software in the audit will help to reduce the cost of financing the information department, optimize performance and eliminate "weak" links that are hindering development. review of thematic literature it is necessary to take the economy to a new modern level, to carry out the treatment and management system carried out in the subjects of chickenpox on the basis of modern information technologies. in uzbekistan, the legal framework for such issues as e-government and e-signature has been established today. today, information technology is also widely used in accounting and auditing services. in turn, as a result of the effective use of an automated system of economic information by the auditor, time is saved on inspections, the quality of the control being carried out increases. to do this, the auditor is required to have special knowledge and skills and to have practical experience in the type, software and mathematics of audit software and the electronic data processing system. although not enough research has been carried out on the use of information technologies in auditing activities of uzbekistan or the organization and implementation of software-based auditing, but the theoretical and methodological aspects of the introduction of information technologies in auditing have been studied by some uzbek researchers. in particular, the uzbek researcher n.the issues of introduction of it audit service into the practice of uzbekistan were studied by dalibaev and described the features of application of this service in practice [1]. i. from uzbek economist scientists.the organization and implementation areas of audit on the basis of information technology opportunities in pandemic and remote work conditions were studied by meliev [2]. economist olima sh.k.the features of conducting an audit using modern information technologies are studied in umarova's research [3]. belarusian scientists n.v.gomolko and l.a.the methodology for the organization and implementation of automated auditing was studied by popkovas [4]. also, another economist is the russian scientist k.a.the possibilities of conducting an audit on the basis of information technology were researched by truhan [5]. russian scientist b.a.the features of conducting an audit in the information technology environment were studied by sharifov [6]. a group of uzbek scientists d.a.mirzaev, i.j.bozorova and f.x.mamasidikovas, on the other hand, studied the prospects for the development of it auditing in world and uzbek practice and the directions for its introduction into audit practice and made scientific and practical recommendations in this field [7]. analysis and results in the current world audit practice, office programs, regulatory legal information systems, accounting software, financial analysis software together with specialized types of audit software are widely used. in our opinion, due to the complexity of the tasks to be solved on the automation of auditing activities, american journal of business management, economics and banking volume 33 february 2025 p a g e | 17 www.americanjournal.org the effectiveness of the application of software in many ways directly depends on its implementation and user training. the use of audit programs in the process of auditing allows the auditor to carry out the following tasks qualitatively and in the short term: checking the balances on the customer-enterprise transactions and bank accounts through a computer database; computer database, the ability to perform analytical actions to determine the differences of funds and funds in the document and in force; checking the database of the business entity under investigation; the possibility of testing technical, mathematical and information software, which is used in the activities of the investigated economic entity. however, in our opinion, at the moment, the above programs in the audit practice of uzbekistan are not effective and purposefully used due to the following factors (table 1). table 1. factors affecting the non-application of audit-related software in the audit process 1 1 prepared by the author. factor (cause) type of s the content of factors(causes) all-in-one − at the initial stage of the development of auditing activities, the low level of development of the market in question has developed; − the limitation of the possibility of full documentation of the audit process of the audit process and the need to form a professional opinion, as well as the specificity of the required audit activity; − auditors are not at the required level of computer literacy; − complex formation of the audit process; − the fact that the regulatory legal base of audit activities is very complex and large in size; − lack of a single approach to conducting an audit in practice; different results are obtained during the verification period; − the presence of various complications in their systematization in the preparation of the audit summary; − increase in the volume of audit services related to the industry as a result of the transition to audit at the level of international standards requirements; − increased internal and external control over the quality of auditing services provided; tech − application of various accounting software by the enterprise in which the audit is carried out; − implementation (portable) feature of the audit service going to the objects of the cliententerprise application; − the fact that the clients of audit firms specialize in different industries. − this is due to the fact that in the context of changes in legislative requirements, automated audit programs cannot be adapted to the characteristics of the activities of various audit objects. − the need of auditors to study different software in order to master the software bases used in clients; − confidentiality of audit results and compliance with protection requirements; − the limitation of the possibility of electronic archiving of the final documents of the worker and the examination through the use of an electronic-digital signature. american journal of business management, economics and banking volume 33 february 2025 p a g e | 18 www.americanjournal.org all the above-mentioned factors are necessary on the one hand for the development of the quality level of services provided in the field of audit on the basis of information technology, and on the other hand, serve as the subject of disputes between auditors and software developers. it is worth noting that in audit activities, no software can replace the auditor. however, during the audit process, it is advisable to use the software capabilities of a specialized audit to networks. one of the main requirements imposed by auditing services customers today is to ensure that auditing services are carried out qualitatively, in the short term or without interfering with the activities of the enterprise (without impact) and at low values. in turn, to ensure the fulfillment of the above requirements by audit organizations, it is required to have specialists with knowledge and experience in the areas of accounting, economic analysis and audit, to carry out such strategic tasks as the implementation of audit services using modern software tools (auditnet, itaudit:auditor, auditxp "complex audit", express audit:prof, auditsoft, audit sampling, teams, leap and firstaudit), as well as the use of it should be noted that in the audit practice of today's uzbekistan there are the following problems in the application of software in inspections (figure 1). figure 1. problems of applying modern software in audit processes 2 in our opinion, in order to eliminate the above problematic aspects and ensure the provision of auditing services on the basis of software, it is advisable to develop software in the uzbek language and in accordance with the requirements of the norms of the national legislation of uzbekistan, the features of modern audit software. software development allows auditors to conduct remote i.e., inspections on 2 prepared by the author. problems of applying modern software in audit processes the high cost of economically high cost of modern audit software, their installation in audit organizations, the high cost of training auditors in the use of software the use (application) of modern audit software is a lack of auditor-specialists with potential(knowledge, qualifications and skills) the fact that modern auditing software is coordinated to the requirements of international auditing standards (the presence of different features of the norms of uzbek legislation), moreover, most of the software is specialized in russian and english in modern audit software, the absence of the content and forms of accounting documents established by the legislation of uzbekistan, the opinions(attitudes)of those responsible for committing errors or shortcomings and documents reflecting the results of the examination, etc. american journal of business management, economics and banking volume 33 february 2025 p a g e | 19 www.americanjournal.org a short-term and low-cost basis, without affecting the performance of those responsible for the enterprise and of course. in our opinion, it is advisable to embody in the audit software the following opportunities that ensure the effectiveness of the collection of evidence: 1. to make it possible to run the software on the basis of the internet network. in this case, we believe that all members of the audit should have the opportunity to receive information about the activities of the subject, which is being investigated remotely on the basis of their electronic keys, to send the relevant responsible-analytical information to the auditors; 2. the software aims to enable audit task force members to set a fixed deadline (time) to complete relevant audit assignments. this allows the auditing process to be completed by the auditor and the auditing organization at its due date(specified in the audit contract; 3. the software should provide an opportunity to exchange information on the implementation of not only audit data on the subject being served, but also information on the internal structural structure of the audit organization(internal regulatory document)or exchange information on the implementation of tasks of internal structural significance. this provides the opportunity to ensure the enforcement discipline in the activities of the audit organization and control the state of execution of internal regulatory documents(orders, orders and instructions)by the management of the organization, as well as to convey information on these documents to them at their due date; 4. in the software, it is necessary to have the opportunity to create new assignment documents, document(assignments)received and sent on audit assignments, send audit assignments to members of the audit working group, carry out tasks to control the status of audit assignments at their due date and quality; 5. the software aims to have regulatory documents regulating accounting and auditing activities, international standards of auditing, national standards of accounting and international standards of financial reporting, internal standards of an auditing organization, sample forms of auditing work documents compiled and formalized in audit processes, as well as other methodological and practical databases used in auditing. these information(documents)are used by members of the audit working group and other auditor-specialists of the organization as methodological and practical guidance in the processes of organization and implementation of audit services. because, in the audit system of uzbekistan, audit organizations can simultaneously provide audit services in different entities (insurance organizations, banks, joint-stock companies, various commercial organizations, entities in the form of mixed ownership), and the organization of this database in the software serves as a necessary resource in its use as a standard and methodological basis for the verification process; 6. the software should also be able to assess and control the quality, accuracy and performance of the tasks assigned to the members of the audit working group by the head of the audit group or the head of the audit organization. this opportunity allows members of the audit working group to establish effective control over the execution of audit tasks attached at the time of their term and quality. to this end, it is advisable to check the electronic information in the framework of the deadline and quality execution of the task assigned in the system in the program by the head of the audit group (organization) and to create an opportunity to bring the task out of control in the software after checking the status of the fulfillment of this requirement. in this case, it is necessary that the "monitoring of assignments" is created so that the tasks are completed on their own time and correctly removed from control by the head of the audit team(organization); american journal of business management, economics and banking volume 33 february 2025 p a g e | 20 www.americanjournal.org 7. in order to speed up the exchange of information by members of the audit organization in the software, to ensure the safety of their data, it is advisable to create an opportunity for exchange of information through this software through "telegram" or other social networks. this makes it possible to establish a reliable and secure information exchange system through software. to generate this possibility, it is necessary to make it possible to access(become a member) the telegram messenger or other social networks in the software; 8. we believe that it is necessary to install software(electronic system)not only on a computer, but also on modern telephones, palanchets and other similar information devices(tools), to create opportunities to ensure the exchange of information through them. through these opportunities, members of the audit working group are able to share remote audit data over an internet connection, manage and summarize the verification process. it seems to us that in the software with the above capabilities, the possibility of separate and special use by members of each audit team through the internet network, the use of sample document forms in the program regarding the results of the placement of audit work documents (intermediate and general audit references, reference for the results of the examination, comparison-comparison records, research has revealed that software such as auditnet, itaudit:auditor, auditxp "complex audit", express audit:prof, auditsoft, audit sampling, teams, leap, and first-audit are used on a short-term and low-cost basis in the collection of audit evidence abroad. it seems to us that it is advisable to do the following in order to create an automated algorithm for collecting auditing evidence, the importance and need to use software capabilities in the processes of collecting evidence, problems, requirements for the application of software (table 2). table 2 by introducing evidence into the software the procedure for forming an auditor's opinion № recommendations for the tasks to be introduced 1 initially, in the software, the name of the audit organization, the names of the auditor operating in the organization, assistant auditors and attracted expert experts, identity information, their duties in the position and position instructions, the corresponding calendar period (year, month, day), system language, contact numbers for technical support should be entered before the application of the software to all 2 after the conclusion of the contract for the provision of audit services, information about the activities of the subject under investigation(charter of the enterprise, instructions for the position, constituent documents, approved forms of financial and statistical reports of the enterprise, information about the partners of the enterprise (suppliers and contractors, buyers and customers, etc.), order on accounting policy, audit contract, general, request for documents, etc.k.) it is necessary that the head of the audit team(organization)i be included in the software base and brought to the attention of all members of the audit working group in the system 3 evidence (documentary information) necessary for the performance of audit tasks (collection of evidence) (violation (error or deficiency) committed in the activities of the subject under investigation, documents justifying the reliability of financial reporting indicators, including the results of the questionnaire, tests or surveys carried out, a letter of submission, a table of calculation of the audit risk and degree of importance) 4 the reliability of information(documents)entered into the software (system)by the head of the audit group (organization)i (legislation of economic relations) is assessed using the appropriate audit method (act), and the results of the analysis are reflected in the intermediate and general audit references 5 based on the opinion of the auditor on the results of the examination, a written reference and an audit summary should be reflected american journal of business management, economics and banking volume 33 february 2025 p a g e | 21 www.americanjournal.org in place of the conclusion, it is worth noting that the above criterion (requirement) and the creation of data-based software make it possible to carry out tasks related to the formation of all audit data in a remote form, in content and language understandable to all in the short term, except for the intangible research(verification)of the auditor. in this case, the management of the subject under investigation is considered responsible for the reliability of the information provided to the auditor, and the audit organization is responsible for the reliability of the auditor's opinion. also, in the process of research, the results of the study were described on the current state of application of the it audit service in the practice of uzbekistan, existing problems and the application of the it audit service in practice, which is widely used in world audit practice. in our opinion, the software (system) with the above highlighted capabilities allows you to collect audit evidence at the address or remote form where the audit organization is located, without affecting the activities of the subject under investigation, and analyze audit evidence on the basis of electronic data of content understandable to all and store this information in reliable sources. this creates opportunities for the audit organization such as reducing the fee paid for the audit service, less involvement of auditors in the performance of auditing services, and conducting audits on the basis of the terms and procedures established in the contract. conclusion in our opinion, it is advisable that the information technology used in the audit process has the following capabilities: the ability to run audit software on the basis of an internet network, to set a strict deadline for members of the audit working group to complete relevant audit assignments; opportunities for exchange of information on the implementation of information regarding the internal structural structure of the audit organization or exchange of information on the implementation of tasks of internal structural significance; the possibilities of creating new assignment documents, sending audit assignments to members of the audit working group, performing tasks to control the status of audit assignments within their term and quality; there will be regulatory documents regulating accounting and auditing activities, international standards of auditing, national standards of accounting and international standards of financial reporting, internal standards of an auditing organization, sample forms of auditing work documents used, as well as other methodological and practical databases used in auditing; opportunities to assess and control the quality, correctness and fulfillment of the tasks assigned to the members of the audit team by the head of the audit team or the head of the audit organization; to have an analysis of the data on the results of the work performed by the members of the audit organization (auditor, assistant auditor, expert-specialist) (audit assignments, work documents, tasks completed during their term, not completed and in the process of work) ; the possibility of information exchange through telegram or other social networks through this software in order to speed up the possibility of information exchange by members of the audit organization, to ensure the safety of their data; options for naming entered audit assignments, obtaining information about who sent the entered audit evidence, sending documents, entering entry and exit numbers, marking those responsible for the audit american journal of business management, economics and banking volume 33 february 2025 p a g e | 22 www.americanjournal.org assignments, familiarizing themselves with the content of the assignment sent to them by those responsible, receiving information about the receipt or rejection of assignments by them; installation of audit software not only on a computer, but also on the tools of modern telephone, tablet and other similar information tenologies, the possibilities of ensuring the exchange of information through them, etc. references 1. н.далибаев “it-аудит. бу нима?”, https://ictnews.uz/30/03/2022/it-audit 2. и.и.мелиев “пандемия ва аудит: муаммони қандай ҳал қилса бўлади?” https://xabar.uz/texnologiya/pandemiya-va-audit-muammoni-qanday. 3. ш.к.умарова. “замонавий ахборот технологиялардан фойдаланган ҳолда аудит ўтказиш хусусиятлари”, "экономика и социум” журнали 2022 йил 6-сон, www.iupr.ru 4. н.в.гомолко, л.а.попкова. “автоматизация аудита”, 1999 г. www.edoc/bseu.by 5. к.а. трухан. автоматизация аудита с помощью программы it audit // корпоративные информационные системы. – 2019. – №4 – с. 19-25. – url: https://corpinfosys.ru/archive/issue-8/73-2019-8-itaudit. 6. б.а.шарифов. методика проведения аудита с использованием информационных технологий и персональных компьютеров // молодой ученый. 2021. №3. с. 332-335. url: https://moluch.ru/archive/345/77632. 7. д.а.мирзаев, и.ж.бозорова, ф.х.мамасидикова. перспективы развития iт-аудита системы бухгалтерского учёта за счёт внедрения икт. девятая международная научнопрактическая конференция «big data and advanced analytics. big data и анализ высокого уровня», минск, республика беларусь, 17-18 мая 2023 года. https://ictnews.uz/30/03/2022/it-audit https://corpinfosys.ru/archive/issue-8/73-2019-8-itaudit american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 87 www.americanjournal.org prospects for development of management authority and competences of leading personnel xusanov azimjon nozimjonovich master of tsue a b s t r a c t k e y w o r d s this article discusses the role and importance of management personnel in management processes, leadership potential and competencies, as well as their specific characteristics, and also provides individual recommendations based on the findings. the prospects for the development of management potential and competencies of management personnel in our country were also explained. leader, leader image, leadership potential, aida, charisma, competence, quality, leadership style, competence, leader. introduction in the dynamic landscape of uzbekistan's business environment, the role of management authority and the competences of leading personnel are pivotal in shaping organizational success. as the nation undergoes rapid economic reforms and embraces globalization, the need for adept leadership capable of navigating complexities while fostering growth has never been more pronounced. this article explores the promising prospects for enhancing management authority and competences among toptier personnel within the unique context of uzbekistan, elucidating the benefits and strategies for embracing this transformative journey. uzbekistan's transition from a centrally planned to a market-oriented economy has spurred a redefinition of management authority. according to the world bank, uzbekistan's economy is projected to grow by 5.5% in 2024, signaling a growing need for agile and inclusive leadership approaches. traditional hierarchical structures are giving way to more dynamic models where authority is derived not only from positional power but also from expertise, influence, and the ability to inspire and align teams towards common goals. evolution of management authority: management authority has transcended traditional hierarchical structures to encompass a more dynamic and inclusive approach. in contemporary organizations, authority is not merely derived from positional power but also from expertise, influence, and the ability to inspire and align teams towards common objectives. the shift towards collaborative leadership underscores the importance of fostering trust, transparency, and accountability at all levels. the world economic forum's global competitiveness report ranks uzbekistan 69th out of 141 countries in innovation capability. competent leadership fosters a culture of innovation and adaptability, essential for uzbekistan's american journal of business management, economics and banking volume 23 april 2024 p a g e | 88 www.americanjournal.org economy to stay competitive. leaders with diverse skill sets can envision and implement novel strategies, driving sustainable growth and attracting foreign investment. advantages of strengthening management competences: innovation and adaptability: competent leadership fosters a culture of innovation and adaptability, enabling organizations to respond swiftly to market changes and technological advancements. leaders equipped with diverse skill sets can envision and implement novel strategies that drive sustainable growth and competitive advantage. employee engagement and retention: effective leadership is instrumental in cultivating a positive work environment where employees feel valued, empowered, and motivated to contribute their best. investing in leadership development enhances interpersonal skills, emotional intelligence, and conflict resolution capabilities, fostering stronger bonds between leaders and their teams. a gallup poll reveals that only 9% of employees in uzbekistan are engaged at work. effective leadership plays a crucial role in nurturing a positive work environment. investing in leadership development enhances interpersonal skills, emotional intelligence, and conflict resolution capabilities, fostering stronger bonds between leaders and their teams and reducing turnover rates. strategic decision-making: competent leaders possess the acumen to make informed, strategic decisions amidst uncertainty and ambiguity. by honing analytical, critical thinking, and problem-solving skills, they can navigate complex challenges with confidence, steering organizations towards profitable outcomes and longterm viability. according to the united nations development programme, uzbekistan ranks 89th out of 189 countries in the human development index. competent leaders possess the acumen to make informed, strategic decisions amidst the evolving socio-economic landscape. by honing analytical, critical thinking, and problem-solving skills, they can navigate complex challenges, steering organizations towards profitable outcomes. organizational resilience: in times of crisis or disruption, resilient leadership is indispensable for guiding organizations through turbulent waters. leaders with robust competences exhibit composure under pressure, inspire resilience among team members, and spearhead effective crisis management strategies to mitigate risks and ensure business continuity. in a rapidly changing environment, resilient leadership is indispensable. according to the global climate risk index, uzbekistan is among the top 20 countries most affected by climate change. leaders with robust competences inspire resilience among team members and spearhead effective crisis management strategies, ensuring the continuity of essential services and operations. strategies for development: continuous learning and development: establishing a culture of continuous learning is paramount for nurturing leadership competences. organizations can offer diverse training programs, mentorship american journal of business management, economics and banking volume 23 april 2024 p a g e | 89 www.americanjournal.org initiatives, and experiential learning opportunities tailored to the evolving needs of leaders, thereby fostering a growth mindset and a commitment to excellence. 360-degree feedback and assessment: implementing robust feedback mechanisms enables leaders to gain insights into their strengths, areas for improvement, and their impact on teams and organizational performance. by soliciting feedback from peers, subordinates, and superiors, leaders can identify blind spots, enhance self-awareness, and refine their leadership approach accordingly. according to a survey by mercer, 60% of employees in uzbekistan feel that their performance evaluations are not fair. implementing robust feedback mechanisms enables leaders to gain insights into their strengths and areas for improvement. by soliciting feedback from peers, subordinates, and superiors, leaders can refine their approach to better serve the needs of their organizations. promoting diversity and inclusion: embracing diversity and inclusion is essential for cultivating a leadership cadre that reflects the richness of perspectives and experiences within an organization. by championing diversity in leadership roles and fostering inclusive practices, organizations can harness the collective talents and creativity of their workforce, driving innovation and resilience. encouraging mentorship and coaching: mentorship and coaching programs provide valuable guidance and support for emerging leaders, enabling them to accelerate their professional growth and develop essential leadership competences. pairing aspiring leaders with seasoned mentors fosters knowledge transfer, fosters leadership succession planning, and strengthens organizational bench strength. picture. types of management authority and competences american journal of business management, economics and banking volume 23 april 2024 p a g e | 90 www.americanjournal.org as organizations navigate an increasingly complex and volatile business landscape, the imperative to develop management authority and competences of leading personnel has never been more pressing. by embracing a holistic approach to leadership development, organizations can cultivate a cadre of competent leaders who inspire trust, foster innovation, and drive sustainable growth. investing in leadership development is not just a strategic imperative; it is a catalyst for unlocking the full potential of individuals and organizations alike, propelling them towards a future of enduring success and significance. as uzbekistan continues its journey towards economic modernization and global integration, the development of management authority and competences of leading personnel emerges as a critical priority. by embracing a holistic approach to leadership development, organizations can cultivate a cadre of competent leaders who are equipped to navigate complexities, drive innovation, and contribute to the nation's sustainable development goals. investing in leadership development is not just a strategic imperative; it is a catalyst for unlocking the full potential of individuals and organizations, propelling uzbekistan towards a future of prosperity, resilience, and inclusive growth. researchers from around the world have identified certain essential competencies for leadership. apart from these, the future strategies and trends of the business also need to drive the development of new leadership competencies. even though some of the leadership competencies are vital for every organization, a firm needs to define the attributes of leadership which are distinctive to a particular firm for the creation of competitive advantage. the top-level leaders, aspiring managers, and managers are all concerned with developing the competencies required to help them become more effective leaders. over 100 years of research on leadership competencies have identified and outlined the successful abilities and skills associated with leadership effectiveness. better leadership is a result of focusing on skill development and leadership competencies. however, the skills required for a certain position might change depending on the organization’s specific level of leadership competencies. using the competency approach will help organizations determine the specific competencies required for different positions at different levels in a particular organization. certain vital leadership competencies have been identified by the “centre for creative leadership,” and these are consistent throughout the organizations. according to them, the overall structure gets divided into competencies needed for leading the organization, leading others, and leading oneself. when hr professionals select and develop leaders, they need to consider the leadership competencies possessed by the individual and then compare them with the competencies required for further development to achieve success. thus, by looking at a person’s current capabilities and comparing them to the skills and competencies essential for the position of leadership, organizations will be able to make better decisions for the hiring, development, and promotion of leaders. leadership competencies and how to develop them? 1. social intelligence (si) si is among the best predictors as far as effective leadership is concerned. social intelligence refers to the sensitivity to social situations, the “constellation of social performance,” and role-playing skills, which are crucial for effective leadership. social intelligence is a wide concept about understanding social situations, dynamics, and the ability to operate efficiently in several social situations. https://www.educba.com/competitive-advantage-example/ https://www.educba.com/essay-on-leadership/ https://www.educba.com/hiring-mistakes/ american journal of business management, economics and banking volume 23 april 2024 p a g e | 91 www.americanjournal.org how to develop social intelligence? expose yourself to different types of people and different kinds of social situations, along with the work for the development of social perceptiveness and also the ability to engage other people in a conversation. 2. interpersonal skills interpersonal skills, also known as a “subset of social intelligence, “form a more relationship-oriented aspect of social effectiveness. the soft skills of leadership are often represented best by interpersonal skills. how to develop interpersonal skills? to develop interpersonal skills, work on effective listening and communication skills. join networking groups and toastmasters for this purpose and work on your personal and professional relationships with your relatives, colleagues, friends, or significant other. 3. emotional intelligence / skills (ei) emotional intelligence is a compliment to social intelligence. it is the ability of an individual to communicate at an emotional level, be able to have an understanding of emotional situations and emotions, and also stay in tune with own emotions. these are related especially to the leadership “charisma.” how to develop emotional intelligence? to develop emotional intelligence, you need to practice reading the nonverbal cues of others, especially the cues that are related to emotions. learn to have control over your emotions as well as your anger outbursts. 4. prudence it is among the cardinal virtues of aristotle. it is a synonym for wisdom and is the ability to understand the perspectives of others by being open and unbiased. how to develop prudence? to develop prudence, you need to listen to others. you have to learn to ask for the views and opinions of others and consider them when choosing a particular course of action. you have to work towards being more broad-minded and also more open-minded. 5. courage fortitude or courage is another cardinal virtue. this includes the courage to take calculated risks, stand up for your beliefs, and do the right things. how to develop courage? its roots lie in the development and the holding of strong personal values. if you value someone or something sincerely, you will possess the courage to stand up for your principles and your people. https://www.educba.com/develop-interpersonal-skills/ https://www.educba.com/develop-interpersonal-skills/ https://www.educba.com/professional-relationships/ https://www.educba.com/professional-relationships/ https://www.educba.com/emotional-intelligence-quotes/ https://www.educba.com/anger-the-demon-in-you/ https://www.goodreads.com/author/show/2192.aristotle american journal of business management, economics and banking volume 23 april 2024 p a g e | 92 www.americanjournal.org 6. conflict management this “higher order” interpersonal skill helps colleagues avoid or resolve conflicts. when the members of an organization are in conflict with each other, the leaders are generally called upon to adjudicate. however, the ability to either avoid or resolve conflict situations is also involved in this. how to develop conflict management skills? courses and workshops are available to assist you in understanding and learning conflict management strategies. a vital aspect of conflict management with respect to leadership competencies is to help the parties involved in the conflict to compromise (wherein each party should have the flexibility of giving up something) or collaborate (a win-win outcome). 7. decision making the core leadership competencies are making good decisions or leading a good decision-making process. the ways of making decisions can be better or worse. still, a good leader knows when to decide, when the peers and subordinates must be consulted and brought into the decision-making process, and when the time is right to take a step back and allow others to make decisions. how to develop decision-making skills? the best way of honing decision-making skills is by experiencing and studying situations where decisions have gone wrong. people learn more often from the mistakes that they have committed rather than from the success that they have achieved. 8. political skills it is a fact that all organizations or groups at their core are full of workplace politics. to move ahead, people attempt to gain allies, break the rules and push forward their agendas. an effective leader is also a good player politically, has knowledge regarding the rules that need to be followed for playing the game, and can manage political behavior to prevent it from resulting in the dysfunction of the group or the organization. how to develop political competencies? in the same way, as with several of the other leadership competencies that are highly developed, political skills are acquired through learning from experience, social dynamics, and people. 9. influence skills leadership, at its core, is all about influencing other people’s behavior. therefore, a great leader is someone who is a master of social influence and can wield power fairly and effectively. you can become all the more influential in the leadership role if you can develop interpersonal or soft skills. how to develop influence skills? reasoned and well-thought-out arguments are useful after getting trained in debating. viewing things from the perspective of the other person may assist you in understanding what the things expected by them from negotiation are. this will let you focus on a situation that is a win-win. https://www.educba.com/conflict-management-techniques/ https://www.educba.com/conflict-management-techniques/ https://www.educba.com/workplace-politics/ https://www.educba.com/soft-skills-in-the-workplace/ american journal of business management, economics and banking volume 23 april 2024 p a g e | 93 www.americanjournal.org 10. area competence / expertise in today’s age, the significance of knowledge in every aspect of jobs is less important than it was. in creative firms or high-tech industries, the team members might possess more relevant knowledge and expertise than the leaders. still, leaders must develop expertise in particular situations, industries, or organizations where they are in leadership roles. how to develop area competencies? development is a lifelong process, similar to all the other competencies. you need to study the organization and also study the competitors of the organization. effective leaders gain competence and expertise and attempt to gain as much knowledge as possible regarding their organization, product, and team members. apart from the above-mentioned competencies, leaders should also possess the competencies of agility, speed, passion, and focus to succeed. such skills, however, cannot be taught. if an organization requires and supports these leadership competencies as a basis of its success, they must be instilled through an embedded system of leadership development. the success of such a program is dependent on five crucial factors, which include the – • support provided by the executive leadership • challenging work assignments • the right people • the supportive environment of work • instead of a course for skills, there should be a leadership development system. furthermore, if the organization’s top leadership champions the development of the fifth element, this can be the most critical factor. the unwavering support provided by executive leadership can significantly impact the success of the fifth element’s development. in that case, the leaders produced by the system will ensure that the work environment is supportive. it helps to provide work assignments that are challenging for the right people. this will also facilitate the process of building leadership teams that are strong throughout the organization. research has also revealed that the teams produced via an embedded system in an organization hold the key to the business’s long-term success. the “right” chief executive will not be able to solve all the organizational problems. therefore, the leadership competencies of a winning organization that can stand the test of time go far beyond the organization’s chief executive. it extends to the leadership team and the procedures, structures, and systems they put in place. over some time, it is the organizational systems and the broad leadership of an organization that is crucial, particularly in periods that involve high expectations and stress. https://www.educba.com/chief-executive-officer/ american journal of business management, economics and banking volume 23 april 2024 p a g e | 94 www.americanjournal.org although leadership competencies vary between roles, there are some core leadership competencies that are essential for every leader, regardless of the industry and company they are in. being able to understand and spot these leadership competencies enables hr to make better-informed decisions when it comes to hiring, developing, and promoting leaders. the society for human resource management (shrm) distinguishes three competency categories, namely: • competencies for leading the organization (e.g., conflict management, decision-making, change management) • competencies for leading others (e.g., emotional intelligence, being a good coach, inclusiveness) • competencies for leading the self (e.g., self-management, courage, learning agility) other categorizations are possible too. for example, deloitte’s leadership capability model identifies two distinct elements. the first is developable capabilities, which are the learned factors that are acquired and change over time and reflect what a leader can do. the second is leadership potential – those are innate factors that are hard(er) to develop, stable over time, and reflect how a person is. in this article, we’ll explore the three main types of leadership competencies presented by shrm in more detail. it’s important to note that the below list of leadership competencies isn’t exhaustive and that many competencies can fit within multiple categories. leadership competencies vary between industries, organizations, and the ranks and roles within those organizations. what’s important is that hr understands the unique leadership competencies necessary for leadership success in each role, so they can make better decisions when it comes to hiring, developing, and promoting leaders. https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/leadership-and-navigation/pages/leadershipcompetencies.aspx https://www2.deloitte.com/content/dam/deloitte/uk/documents/about-deloitte/deloitte-uk-the-dna-of-leadership-potential-updated.pdf https://www2.deloitte.com/content/dam/deloitte/uk/documents/about-deloitte/deloitte-uk-the-dna-of-leadership-potential-updated.pdf american journal of business management, economics and banking volume 23 april 2024 p a g e | 95 www.americanjournal.org it’s equally important that employees believe their organization prioritizes their development and provides the structure needed for them to successfully advance in the business and perform in their roles. references 1. avolio, b. j., & hannah, s. t. (2008). developmental readiness: accelerating leader development. consulting psychology journal: practice and research, 60(4), 331-347. 2. bass, b. m., & riggio, r. e. (2006). transformational leadership (2nd ed.). lawrence erlbaum associates publishers. 3. goleman, d., boyatzis, r., & mckee, a. (2002). primal leadership: realizing the power of emotional intelligence. harvard business press. 4. kotter, j. p. (2012). leading change. harvard business review press. 5. northouse, p. g. (2018). leadership: theory and practice (8th ed.). sage publications. 6. yukl, g. (2013). leadership in organizations (8th ed.). pearson education. 7. conger, j. a. (1999). charismatic and transformational leadership in organizations: an insider’s perspective on these developing streams of research. leadership quarterly, 10(2), 145-179. 8. hogan, r., & kaiser, r. b. (2005). what we know about leadership. review of general psychology, 9(2), 169-180. 9. mccauley, c. d., moxley, r. s., & van velsor, e. (eds.). (1998). the center for creative leadership handbook of leadership development. jossey-bass. 10. day, d. v., zaccaro, s. j., & halpin, s. m. (2004). leader development for transforming organizations: growing leaders for tomorrow. lawrence erlbaum associates. 11. safaraliyevich m. b., vakhidovich g. s. the main directions of improving financing and project management in the social sphere //best journal of innovation in science, research and development. – 2024. – т. 3. – №. 3. – с. 542-551. 12. murtazaevich, khoshimov sabir, and ganiev shahiriddin vohidovich. "issues of increasing the attractiveness of the investment climate when attracting investments into the economy." (2024). 13. vohidovich g. s. leasing procedure of fixed assets in budget organizations and their expenditure //indonesian journal of public policy review. – 2022. – т. 18. 14. qizi, aminova nilufar umarboy. "issues of financing of investment projects on the basis of syndicate loaning." open access repository 10.12 (2023): 8-14. 15. suleymanov i. features of financial support for the real sector of uzbekistan’s economy in the context of geo-financial policy instability //spectrum journal of innovation, reforms and development. – 2024. – т. 23. – с. 33-43. 16. kholmamatov, f. "the importance and role of bank capital in ensuring the stability of the banking system." (2023). 17. холмаматов ф. к. тижорат банкларининг кредитлаш амалиётини такомиллаштириш. и. ф. б. ф. д. дисс. автореф //и. ф. б. ф. д. илм. дар. ол. уч. тақд. эт. дисс. автореф.–тошкент. – 2019. 18. navruzov i. a. the role and significance of the regional investment environment in attracting foreign investments to the economy american journal of business management, economics and banking volume 23 april 2024 p a g e | 96 www.americanjournal.org //innovatsion iqtisodiyotni shakllantirishda axborot kommunikatsiya texnologiyalarining tutgan o ‘rni. – 2023. – т. 1. – №. 1. 19. suleymanov, ilnur. "challenges in enhancing the resource foundation of commercial banks through the integration of banking systems with the real economy sector." (2024). 20. сулейманов, ильнур. "воздействие международных финансовых отношений на банковский и реальный сектора экономики узбекистана в условиях гео-финансовой нестабильности." american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 227 www.americanjournal.org occasualism as a phenomenon of word creation in the light of media discourse akhmedova aziza khusenovna, samarkand state institute of foreign languages, lecturer at the department of russian language and literature e-mail: aziza_axmedova_95@mail.ru a b s t r a c t k e y w o r d s currently, the focus of scientists is on research into the functioning of the language, which highlights the creative nature of word formation in the russian language. one of the most noticeable manifestations of the author’s personality is word creation. thanks to the author's creativity, neologisms appear in speech, which carry an evaluative connotation of the realities of society. this article examines the phenomenon of word creation in the media space, the functioning of occasionalisms in media discourse. media discourse, occasionalisms, new formation, word formation model, affixation. introduction occasional words will help demonstrate the features of the modern russian language, showing real events taking place in society, and give expressiveness and beauty to the texts. expressiveness of speech manifests itself when speech is individual and supported by specific properties and features. “the creative approach to language learning involves the use of an individual’s ability to generate original statements, and the most expressive illustration of linguistic creativity is the formation of neologisms.” it is obvious that word formation is the most powerful way of expressing the expressiveness of the text, which actualizes all its components, enhancing the subjectivity of the author in modern media texts [1]. from the perspective of media texts, it is extremely difficult to express expressiveness and therefore the need to use neologisms is an obvious fact in order to give an expressive effect to the context. in this regard, derivational processes have intensified in the language of the media, which show the degree of productivity of word-formation methods, new productive stems and the criterion for their formation [2]. the authors’ implementation of various means of new formations that help reveal the expressiveness of the text is due to the fact that “the author plays with words, competes in these games with others, trying to defeat his opponent in wit, wit, and originality of the form of expression.” linguists believe that the desire for expression promotes the use of word-formation models, which, from the perspective of newspaper and journalistic style, give the context special expressiveness. it american journal of business management, economics and banking volume 23 april 2024 p a g e | 228 www.americanjournal.org is obvious that media text is a favorable source for the formation of neoderivatives of the russian language. thanks to the implementation of occasional units, our analysis allows us to talk about the functionaldiscursive conditions for creating expression. various components that contribute to the creation of structural and semantic characteristics of derivatives, and neologisms created by a certain method of expressiveness, themselves create the effect of expressiveness and novelty. we believe that the expressiveness of occasionalisms created by conventional means is determined by the semantic-stylistic characteristics of the generating lexeme, called occasionalism, as well as the expressiveness of the word-formation model itself and the generating affixes. in modern media texts, neologisms with expressive-evaluative affixes are often found, especially dimensional-evaluative suffixes. for example, in a statement from the ntv channel dated september 23, 2023, it is said that this is not a hit, but a hit! do you want to add some youth to your wardrobe (channel 1, october 25, 2022); neo-derivatives with the suffix “shchin(a)” with the semantics of disapproval are a striking example of a social-evaluative means. for example, since 1976 in the united states there has been a scientific research committee dedicated to the study of paranormal phenomena. at the same time, no one in russia is thoroughly studying the anomaly; we wanted to divide the committee into information, public relations and media committees. however, the committee still exists. for political television [4]; in addition, based on proper names, one can create evaluative occasionalisms with the suffix “shchin(a)”, which give them individuality. for example, do you know what “basqueism” is? no. “pugachevism” was before, but now it is “baskovism”. “basqueism” is when a person of a high genre takes a step down, ready to do anything to attract attention; the creation of occasionalisms requires the use of both native and borrowed prefixes.these prefixes are divided into two groups depending on the quality of the assessment: pejorative, which have a negative or negative result, and ameliorative, which have a positive connotation [1,4]. the prefixes “anti-, counter”, which have the meaning of negation or opposite, and change the meaning of the producing word to positive or negative, are part of pejorative affixes. for example, in newspaper texts there are often adjectives with the prefix “anti”, which have a negative meaning: the other day it was reported that an outbreak of “anti-swine” african plague also occurred in the krasnodar territory; in the nizhny novgorod region there is an “anti-drug strategy”, which includes a law on the prevention of drug addiction and substance abuse; the company began building “anti-crisis” houses during the financial crisis and made a splash in the real estate market [14]. nouns with the meaning "opposite or opposing" are created using the prefixes "anti/counter". for example: there are also similar differences in the counter-elite: the february 4 march is carried out by several columns, including representatives of general civil, liberal, nationalist and leftist political forces. fashionable anti-fashion. freaks allow people to feel free [5]. in texts for the media, the original russian prefix “ne” is often used, which means “denial, opposite,” which reflects an understanding of the trends and realities of modern society. occasionalisms with american journal of business management, economics and banking volume 23 april 2024 p a g e | 229 www.americanjournal.org the prefix “not” are divided into two semantic groups: 1) substantive neologisms denoting a person; 2) substantive neologisms denoting an abstract object. for example: we met by chance after a long period of “not seeing” and “not communicating”; “is it worth visiting a movie theater if it reflects the same harsh truths of life that we see on the street? those who truly appreciate theater and are interested in cultural news in nizhny novgorod solve the problem differently. while nizhny novgorod non-theater-goers get a “portion of beauty” from crime reports, the issue is being resolved differently.” in addition, in media texts there are often neoderivatives with pejorative prefixes “pseudo/quasi”, which have the semantics of untruth, falsity and represent real events associated with social emotional, ethical and intellectual assessment [9]. example: “celtic folk carries a powerful charge of positivity.” it's attractive. on the other hand, in russia it is called “steppe melancholy,” that is, a pseudo-cheerful hysteria of despair; either it is too sweet, cloying and pseudo-aristocratic, or it is too rude and in a criminal manner, which is today a popular form of popularization of vertinsky; “in russia it has become fashionable to shoot pseudo-historical blockbusters with famous pseudoactors; telephone scams have become common, in which people call on behalf of pseudo-law enforcement agencies, and another family has become the victim of a pseudo-lawyer.” as for the prefix “quasi”, it is used mainly in the formation of adjectival occasionalisms. for example, brazilian director fernando meirelles (“city of god,” “the constant gardener”) produced a quasiphilosophical drama in hollywood that is best viewed with blind eyes; “previously, ls reported about a two-stage exchange scheme, which was of a quasi-criminal nature” [6]. the group of occasional words with the prefixes “super/super” has melorative expressiveness. these neologisms “are represented primarily by quantitative expression, generating something unusual, often these are intensive words.” for example: how to grow super tomatoes. setting up windowsill beds is a great way to start the new season; the superlaser promises to perform oncological operations cheaply and quickly. “a person with super memory has been discovered in the united states. scientists have discovered that the man remembers his story very well.” these prefixes create adjectival and adverbial occasionalisms, which “denote an extremely high degree of manifestation of the attribute of the motivating word.” for example, an interesting case of the use of monomorphemic words in one context: despite the fact that they do not take money for the intention, we can always predict: in the “eleventh” year, a supermodern plant will produce super-rebar and super-round super-rolled metal; house producer david shore decided to end the series in april of this year after eight super-successful seasons; the driver of the miracle car, equipped with air conditioning and heated front glass and mirrors, will feel super great. at the same time, the use of neologisms with the same prefix in one context increases the expressiveness of each of the new formations. the use of a conventional ultra-modern lexeme with the same prefix in a microcontext contributes to the expressivization of occasionalisms, as well as the text as a whole [7]. neologisms with the new prefix “mega” also serve as evaluative semantics indicating a high degree of quality. for example; we need modern methods of waste disposal. mega-mountains threaten our safety; american journal of business management, economics and banking volume 23 april 2024 p a g e | 230 www.americanjournal.org “one of the megafactories owned by the amedia company can be compared to hollywood in terms of the size of its space and film sets. later, well-known conversations began about lobbying the interests of moscow business, court investment councils and megaprojects.” new formations with unspecialized suffixes, especially with suffixes of abstract attribute or procedural semantics, such as “ost, st(o), (iz)atsi(ya), izm,” are often used for expressive-evaluative function. for example, “blonde is more than just a hair color. this is a calling. answer our questions and find out the degree of your blondeness!”; “……urbanization, supermarketization and the popularity of the western lifestyle have influenced the way people eat”; “people are tired of glamor and its glitz”; “in the post-war years, people, tired of everyday life, went to the operetta in order to at least briefly plunge into the luxurious life of flighty barons and countesses. in soviet times, the operetta theater was very good for this “unfortunateness”; “but since spamming has become a big business with huge profits, it won't go away on its own; we must stop offshoring our economy." linguists say that “with the strengthening of analytical methods for analyzing new facts of reality, the craving for abstract names also increases, that is, models based on which abstract nouns are created with a set of characteristic suffixes become in demand.” for example, verbs with the prefix “of” and the postfix “xia”, as well as verbs with the prefix “for” and the suffix “and(t)” have a negative connotation: the general meaning of the word-formation model is “to endow with what is called a motivating noun in an overly large quantity” used in this example: “in general, it is decisive for panyushkin’s ability to sentimentalize the reader”; the word-formation model of “reaching an undesirable state” is used in this context: it takes an average of three to four years to keep them on track so that they don’t get overfed, get drunk, or step on a crooked path [10]. texts containing modern neologisms often “reflect a tendency not only to differentiate concepts and phenomena, but also to integrate interdisciplinary knowledge, to search for integrity in understanding the world.” thus, the semantic-stylistic characteristics, the producing lexeme, the nature of the denotation, the evaluation of affixes and the expressiveness of the word-formation model itself are formed by the expressiveness of occasional words formed in a conventional way. in general, the expression of neologisms is associated with increased author creativity, namely in the creation of a language game in media texts. it is believed that the effect of fascination as a way of influencing the reader is one of the main principles of media texts: “in modern post-industrial society, the play component is increasing in various spheres of social life.” word-building game, the most representative form of language game, is widely used in media texts, which is a completely new phenomenon in the russian language [11]. the expressiveness of neologisms, expressed by word-formation play, violates all the norms of the literary language [12]. the individual approach is closely related to the word-formation game and can be described as “the expression of an individual means of word formation, that is, the individual nature of word formation underlies the word-formation game, because the word-formation game is a manifestation of speech creation” [8]. american journal of business management, economics and banking volume 23 april 2024 p a g e | 231 www.americanjournal.org for example, occasional methods of word formation and neologisms created according to an extraordinary model, for example, substitutive derivation, which replaces morphemes in everyday words, are vivid expressive-evaluative means. the following occasionalisms demonstrate the replacement of the root part: maidan-monetary relations the original word “commodity-money relations” means “harm to democracy to the economy”; loudspeakers and pocket litterers “where to get a job?” the original term “loudspeaker”; a complete european hassle: ukraine promises quick trips and expensive hotels for guests of the 2012 european football championship the original term is “hassle”; metal dreamer: it is obvious that the real director of the metallurgical holding is hiding the truth the original term is "metal detector". with contamination, formal substitutions of graphemes in word-forming hybrids are also possible. for example: inspiration. is gennady zyuganov leaving the post of leader of the communist party of the russian federation? (obsession + leader); gross rudeness. drivers move quickly without fear of consequences and step on the gas. such neologisms serve as a creative basis for authors and serve as a means of expressive-evaluative language play [13]. neologisms created using modern materials “invariably attract the attention of readers to a given linguistic unit and at the same time actualize the corresponding cultural context, as a result of which the addressee activates in his mind certain knowledge associated with the linguistic unit introduced into a new context”, are a vivid evaluative and playful means. topical texts can be defined as “potentially autonomous semantic blocks of a speech work, updating background information that is significant for the author and appealing to the cultural memory of the reader.” the creation of neologisms based on set expressions is one of the most common ways of using actual text in the media. for example: “valve snowballs. on december 23, snow finally fell in the moscow region (veal tenderness)”; "permuda triangle. in the perm region there is an anomalous zone known as the moleb triangle (bermuda triangle).”so, in conclusion, i would like to emphasize that a creative approach to the use of neologisms in current media texts in the process of word creation attracts the reader’s attention to modern social problems and contributes to the formation of individuals’ linguistic and cultural ideas about the world around them. the main trend in the development of the russian language is the speed and intensity of linguistic processes, which determines the predominance of quantitative changes over qualitative, functional changes over systemic ones, which ultimately led to the appearance of a huge number of neologisms in mass media sources. references: 1. ахмедова, а. (2024). семантико-стилистическая специфика функционирования неологизмов в сетевых текстах. science and innovation in the education system, 3(1), 188-193. 2. ахмедова а. х. продуктивные и непродуктивные модели образования новых слов //polish science journal. – 2020. – с. 318. american journal of business management, economics and banking volume 23 april 2024 p a g e | 232 www.americanjournal.org 3. mukhtarovna, k. d. (2023). modern approaches to teaching a foreign language based on the use of multimedia programs. conferencea, 13-17. 4. mukhtarovna, k. d. (2023). information and communication technologies in the russian language lessons. conferencea, 39-41. 5. mukhtarovna, k. d. (2023). a cycle of integrated lessons of literature and world art culture dedicated to the work of sa yesenin. periodica journal of modern philosophy, social sciences and humanities, 18, 106-108. 6. mukhtarovna, k. d. (2024, march). characteristics of the linguistic components of the emotionality of a literary text. in e conference zone (pp. 40-43). 7. kholbaeva d.d., tasheva d.s. pedagogical techniques and methods of forming interest in the lessons of the russian language. web of scientist: international scientific research journal, issn: 2776-0979, volume 3, issue 3, mar., 2022. -p.238 8. kholbaeva, d., & tasheva, d. (2022). theoretical and practical aspects of monitoring the acquisition of knowledge, skills and abilities by students in the russian language in universities. евразийский журнал социальных наук, философии и культуры, 2(11), 115-118. 9. gr bozorova, effective ways to teach the life and creativity of muhammad yusuf in school literature education. международный журнал языка, образования, перевода 3 (2). 2022. 10. khaydarovna, ullieva sanobar, umarova dilfuza mamatkulovna, and allayarova dilfuza klichevna. "artistic character as a personality model: methods of linguistic representation of the human image." the seybold report (2023). 11. ullieva, s.. (2022). historical and comparative characteristics of zoonyms in the uzbek and russian languages. евразийский журнал академических исследований, 2(6), 520–523. извлечено от https://inacademy.uz/index.php/ejar/article/view/2247 12. khaydarovna, ullieva sanobar. "specific aspects of linguistic study of literary characters." zien journal of social sciences and humanities 16 (2023): 38-40. 13. tasheva dilorom, djanzakova matluba. the role of literary text in teaching the russian language. international multidisciplinary conference. manchester, england. 25th december 2023. -p.19. https://conferencea.org 14. tasheva, d. (2022). methods of using didactic materials to enhance activities in the russian language lessons. ta'lim va rivojlanish tahlili onlayn ilmiy jurnali, 2(1), 325-328. https://in-academy.uz/index.php/ejar/article/view/2247 https://in-academy.uz/index.php/ejar/article/view/2247 https://conferencea.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 1 www.americanjournal.org sectoral bank credit and economic development: evidence from nigeria okwuosa, galeed idowu ifeosame, samuel nwaoha phd students university of port harcourt, nigeria glaeedokwuosa@gmail.com a b s t r a c t k e y w o r d s the debate on the issue of sectoral bank credit and economic development has over the years drawn attention of academicians and policy makers across nations with varying opinion motivated our interest in re-examining the link between sectoral bank credit and economic development in nigeria from 1986 to 2021 using the autoregressive distributive lag (ardl) along with its associated long run bond test and the granger causality test as estimation techniques. bank credit to agricultural sector (scas), manufacturing sector (scms), mining and quarrying sector (scmq) and general commerce and trade (sctg) were the sectors considered while per capita income (pci) proxied economic development. pre-estimation was done with the aid of unit root test which showed fractional integration order necessitating the need for the use of ardl as stated earlier and further finds revealed absence of long run equilibrium association among sectoral bank credit and economic development while insignificant negative link was observed between sectoral bank credit to agriculture and trade and general commerce and positive insignificant link between sectoral bank credit to manufacturing sector and mining and quarrying sector. the causality result showed absence of causality among agricultural and manufacturing sectors with economic development, unidirectional causality between mining and quarrying economic development and bidirectional causality with between trade and general commerce and economic development. the study recommends the need for proper awareness on the important of agricultural sector and trade and general commerce role in the development of the economy and as such the need for more credit to be directed to those sectors and that proper policy measures be put in place to ensure that credits given to these sectors are not diverted for use in other areas. sectoral credit, economic development, financial intermediation, capital formation, finance-led growth. american journal of business management, economics and banking volume 26 july 2024 p a g e | 2 www.americanjournal.org introduction the role of financial institution in economic development of a nation cannot be undermined given their intermediation function and its stability exerts crucial role in national development as evidence of correlation among credit market and growth exist in academic literatures (duican & pop, 2015). prominent feature of modern economy is financial institution who borrow from ultimate lenders and lend to ultimate borrowers (chant, 1992). financial institution intermediation role can foster economic growth by increasing savings and promoting capital accumulation (idachaba el ta, 2019) and financial institution as an essential tool in economic performance has since been argued for by schumpeter in 1911 (majeed & iftikhar, 2020). they stressed further that benavenga and smith (1990) and greenwood and jovanvic (1990) argued for close link of financial progress and economic performance. banks have existed since early times taking deposits from individual households and making loans to economic agents requiring capital (allen & santomero, 1997) and they have become crucial sector in world economic segments as us commerce department defined it as sub-sector of financial industry with subsectors focusing on insurance, venture capital, asset management among others (hall, 2023). it is a critical sector in the financial institution which mainly takes deposit from customers and channel same mobilized fund to borrowers in the form of loan and advances at a fee. the banking sector is a major source for business community financing and its role in growth and development of economies is vital (majeed & iftikhar, 2020) as credit generated by banks is a critical funding source for an economy especially the private sector (abubakar & kassim, 2016). it has virtually appeared to be true in all economies with the exception of emerging economies that financial institutions like banking and insurance play leading role in resource allocation (allen & santomero, 1997). as a financial institution, banks perform intermediation role by channeling fund from people who have and do not put them to productive use to people who will within the economy (idachaba el ta, 2019). traditional role of bank centers on deposit collection, lending to customers, acting as referee and agent among others (onuoha, 2013) and prominent among these roles played by banks is the credit creation ability of these banks which have the capacity to exert growth and development in an economy as they serve as the major source for capital formation in an economy. for development to take place, there should be a strong, vibrant financial institution to support growth of the economy and society at large (thaci, 2022). economic growth is channeled to improving capacity of production in an economy by utilizing resources available for risk minimization and elimination of bottlenecks that might hinder investment (fapetu & obalade, 2015) while economic development refers to the sustained, concerted actions of policymakers and communities that improve the standard of living and economic health of a specific area. it involves various factors and encompasses both quantitative and qualitative improvements in economic indicators, infrastructure, technology, education, healthcare, and other aspects of human well-being. therefore, this study is centered on investigating the link between sectoral bank loan and economy development in nigeria. economic development will be proxied by per capita income while bank loan to agricultural sector, manufacturing sector, mining and quarrying and trade and general commerce will be the study’s indicators for sectoral credit. 2.0 literature review 2.1 concepts of sectoral bank credit the concept of sectoral bank credit refers to the allocation of loans and financial resources by banks to different sectors of the economy. banks play a crucial role in the economic development of a country american journal of business management, economics and banking volume 26 july 2024 p a g e | 3 www.americanjournal.org by providing funds to various sectors, such as agriculture, industry, services, and others. the goal is to support and promote the growth of these sectors, which, in turn, contributes to overall economic development. the allocation of credit to different sectors is influenced by various factors, including government policies, economic conditions, and the risk-return profile of each sector. effective sectoral credit allocation is important for achieving balanced economic development and addressing the specific needs of different segments of the economy. 2.1.2 concepts of economic development economic development refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area. it involves improvement in overall quality of life. the concept goes beyond mere economic growth, which focuses solely on the increase in the production of goods and services. it emphasizes over-all well-being of individual within an economy such as their education levels, healthcare, and life expectancy which are crucial in assessing economic development. economic development centers on poverty reduction which involves creating opportunities for employment, income generation, and improving access to basic services for the entire populations and it should be sustainable, ensuring that the present generation's needs are met without compromising the ability of future generations to meet their own needs. this includes considerations for environmental sustainability and social equity. economic development is a complex and multifaceted process that requires a combination of strategic planning, effective policies, and collaboration among various stakeholders, including government, businesses, non-profit organizations, and communities. it seeks not only to increase the overall wealth of a region but also to improve the quality of life for its residents. 2.2 conceptual link between sectoral bank credit and economic development sectoral bank credit and economic development are crucial aspect of a country's financial system and overall economic health. the relationship among them is intricate and multifaceted, involving various stakeholders and factors. sectoral bank credit plays a pivotal role in facilitating capital formation by providing funds for businesses and industries which enables investments in physical and human capital that contributes to economic development as businesses rely on bank loans for expanding operations, investing in new technologies, and enhancing productivity, all of which contribute to overall economic growth and development. availability of credit to different sectors stimulates economic activities and fosters job creation of which businesses that have access to bank credit are better positioned to expand their operations, leading to increased employment opportunities across the economy. bank credit supports research and development activities by providing funds for innovation and the adoption of new technologies that can lead to increased productivity and competitiveness in various sectors, driving economic development. more so, sector-specific credit can contribute to infrastructure development, which is crucial for economic progress. for example, credit extended to the construction sector can fund the development of roads, ports, and other essential facilities that enhance overall economic efficiency. additionally, agriculture is a significant sector in many economies and bank credit to the agricultural sector supports farmers in purchasing equipment, seeds, and fertilizers, contributing to increased agricultural productivity. this, in turn, has a positive impact on food security and hence development. the conceptual link between sectoral bank credit and economic development revolves around the idea that an efficient and well-allocated flow of credit across various sectors contributes to american journal of business management, economics and banking volume 26 july 2024 p a g e | 4 www.americanjournal.org increased production, employment, innovation, and infrastructure development, ultimately fostering sustainable economic development which effective financial intermediation and a supportive policy framework are essential components of this relationship. 2.3 theoretical underpinning financial intermediation theory: financial intermediation theory is a framework that explores the role of financial intermediaries in the economy. financial intermediaries are institutions or entities that act as middlemen between savers and borrowers in the financial system. the theory aims to understand the functions, benefits, and challenges associated with these intermediaries and understanding the roles played by financial intermediaries is found in different models of intermediation theory (allen & santomero, 1997). financial intermediaries facilitate the flow of funds between savers (those with excess funds) and borrowers (those in need of funds). this process helps allocate resources efficiently in the economy. assets are reallocated through sequence of transactions which often includes major institutions viewed as intermediaries and the understanding of asset market decentralization needs understanding of intermediation determinants (bethune, el ta, 2019). banks through their deposit mobilization and lending ability is considered a major intermediary in the financial system and through their intermediation function, capital is accumulated for investment purposes. capital formation theory: eckans and lefeber (1962) argued that economic and development issue must be analyzed within capital theory framework. capital formation theory refers to the study and analysis of the process by which a society accumulates and increases its capital stock over time. capital, in this context, refers to the produced means of production, such as machinery, equipment, buildings, and infrastructure, that contribute to economic output and development. it leads to national income increase, employment generation, enhanced living standard and general increase in output level (onwiodiokit & otolorin, 2021) and central to capital formation is the concept of savings and investment. real investment within an economy is acceptable means of accumulating capital in an economy which intend to enhance its output (ajose & oyedokun, 2018). savings represent the portion of income that is not consumed and is instead set aside for investment. investment, on the other hand, involves using saved resources to create or acquire capital goods. finance-led growth hypothesis: the finance-led growth hypothesis is an economic theory that suggests that financial development and the growth of the financial sector play a crucial role in driving economic growth. this hypothesis posits that a well-functioning and efficient financial system can positively impact economic performance by facilitating the allocation of resources, fostering savings and investment, and promoting innovation and production as essential channel through which financial development transmit to growth (madsen & ang, 2016). ajisafe and okunade (2020) emphasized that increase in financial development enhance domestic investment and as such exerts economic growth and development. financial intermediaries such as banks and other financial institutions roles in mobilizing savings from households and channeling them towards productive investments is essential in the finance-led growth theory as efficient financial intermediation is believed to enhance the efficiency of capital allocation in the economy. levine (2004) stressed that financial system may influence savings, investments, innovation in technology and growth in the long-run and hence the american journal of business management, economics and banking volume 26 july 2024 p a g e | 5 www.americanjournal.org finance-led growth hypothesis become a necessary theoretical link between bank credit and economic growth. 2.4 empirical review okoyan and eze (2021) examined correlation between sectoral loan and bank performance in nigeria from 1990 to 2018 using cointegration and ecm techniques of analysis. agricultural, manufacturing and mining were the sectors studied and interest rate as control variable and bank performance proxied by asset return. findings showed linear insignificant effect of sectoral loan on asset return while interest rate as control variable showed negative effect. joseph (2020) examined bank credit effect on tanzanian’s economic growth from 1993 to 2017 using causality, vem and cointegration test and reported absence causality among bank credit and tanzanian’s economic growth and in the long-run, bank credit exhibit positive significant influence on economic growth. from 1982 to 2017, majeed and iftikhar (2020) investigated influence of banking sector loan on sectoral and sub-sectoral level of pakistan economic growth and reported private sector bank loan to have insignificant positive effect on economic growth and that agricultural sector is not positively influenced while industrial sector is positively influenced as they rely more on bank loan. idachaba el ta (2019) investigated bank credit influence on the economy of nigeria between 1980 and 2017 using regression analysis. bank loan to public sector, private sector and lending rate were the study’s independent variables while gdp proxied nigerian economy. findings revealed bank loan to private sector positively influenced nigerian economy while lending rate and public sector loan showed negative influence. results further revealed presences of long-run equilibrium relationship between bank credit and nigerian economy. between 1986 and 2015, stephen and rodiat (2019) investigated sectoral bank credit allocation and growth of nigerian economy using cointegration, vecm and fmols analytical techniques. production sector, services sector, general commerce and other sectors were the considered sector by the study while gdp proxied economic growth. findings showed presences of long-run association among studied variables and that credit given to production sector were positively significant with economic growth while general commerce, services and others negatively influenced growth. nwanji and okoli (2018) examined link between dmbs sectoral credit allocation and nigeria’s economic growth from 1980 to 2014 using vecm and causality test estimation method and reported sectoral credit to production to positive significant influence on nigeria’s economic growth and other variables to negatively correlate with growth while no causality was recorded between sectoral credit allocation and economic growth in nigeria. from 1994 to 2015, paul (2017) assessed link between sectoral allocation of bank credit by commercial banks and economic growth in nigeria using vecm, cointegration and causality tests as estimation techniques. results revealed presence of cointegration equation implying presence of long-run association among variables. further findings showed that growth of nigerian economy is a significant positive function of commercial bank credit to manufacturing, general serves and agricultural sectors in nigeria while causality test revealed bidirectional causality between agricultural sector and economic growth and a unidirectional causality between manufacturing sector credit and economic growth. american journal of business management, economics and banking volume 26 july 2024 p a g e | 6 www.americanjournal.org abubakar and kassim (2016) examined influence of sectoral bank loan in malaysia using quarterly data between 1997 and 2014. ardl and ecm estimation technique was employed and the study reported bank loan to have uneven effect on economic growth of malaysia in the short-run for manufacturing and quarrying and mining sectors while no effect was recorded in the agricultural sector and a higher effect of bank loan was observed in the construction and services sector in the long-run compared to short-run the study stated. duican ana pop (2015 investigated influence of credit activities on economic growth of romania from 2005 to 2014 using the panel egls cross-sectional random effect with gdp as dependent variable while bank credit as independent variable. findings revealed significant influence of bank credit on romania’s gdp evolution. fapetu and obadele (2015) examined sectoral allocation of bank credit and economic growth in nigeria for 52years period with emphasis on three eras namely inclusive regulation (1960-1985), deregulation era (1986-1995) and guided regulation (1986-2010). production sector, general commerce, services and others were the sector considered while real gdp proxied economic growth and ols employed as estimation technique. the study reported bank credit to government and professionals to be positive and significantly relate with economic growth in the deregulation era as well bank loan to production and other sectors in the guided deregulation era and no influence in the era of deregulation. using quarterly data from 2000 to 2014, olowofeso el ta (2015) investigated influence of private sector bank loan on economic growth of nigeria using the fmols as estimation technique. private sector bank credit, capital formation grossed, exchange rate, government expenditure total and lending rate prime were the study’s explanatory variables while real gdp was the explained variable. findings revealed significant positive influence of private sector bank loan on economic growth and also presence of long-run equilibrium relationship. the study reported further that increased lending rate represses growth. from 1981 to 2011, onuorah (2013) examined the link among bank credit and economic growth in nigeria using cointegration, var and causality test as estimation techniques. credit to production sector, credit to general commerce, credit to services sector and others were the study’s independent variables while dependent variables was gdp. findings reveals presence of long-run relationship among variables studied and that causality flowed from gdp to all the independent variables signifying a unidirectional causality and as well presences of short-run relationship among the variables. 3.0 materials and methods 3. 1 research design the expo-facto research design was adopted because the study was based historical data published by the central bank of nigerian (cbn) statistical bulleting for the variables under study covering 1986 to 2021. american journal of business management, economics and banking volume 26 july 2024 p a g e | 7 www.americanjournal.org 3.2 data and variable description table 3.1 data on per capital income (pci), sectoral credit to agricultural sector (scas), sectoral credit to manufacturing sector (scms), sectoral credit to mining and quarrying (scmq) and sectoral credit to trade and general commerce (sctg) in billion from 1986 to 2021. year pci scas scms scmq sctg 1986 2250 1.83 4.48 0.21 1.48 1987 2652.6 2.43 4.96 0.25 1.83 1988 3455.6 3.07 6.08 0.23 1.73 1989 429.1 3.47 6.67 0.27 1.82 1990 4917.54 4.22 7.88 0.36 2.05 1991 5739.4 5.01 10.91 0.54 2.75 1992 8487.44 6.98 15.4 0.76 3.04 1993 11206.21 10.75 23.11 1.42 3.62 1994 15630.23 17.76 34.82 4.22 1995 27272.25 25.28 58.09 12.07 4.53 1996 35308.93 33.26 72.24 15.05 4.98 1997 37346.68 27.94 82.82 20.61 6.66 1998 39171.57 27.18 96.73 22.85 13.49 1999 44827.17 31.05 115.76 24.68 7.61 2000 52643.98 41.03 141.29 32.29 19.44 2001 62036.26 55.85 206.89 70.48 33 2002 83721.29 59.85 233.47 70.17 16.37 2003 95277.54 62.1 294.31 95.98 29.77 2004 124253.7 67.74 332.11 131.06 18.77 2005 153869.7 48.56 352.04 172.53 25.31 2006 208911.4 49.39 445.79 251.48 34.53 2007 226768.7 149.58 487.58 490.71 26.71 2008 253928.2 106.35 932.8 846.94 34.47 2009 267572 135.7 993.46 1,190.73 31.35 2010 326045.8 128.41 987.64 1,178.10 26.43 2011 366260.4 255.21 1,053.21 1,295.30 52.69 2012 411849.3 316.36 1,068.34 1,771.50 66.55 2013 448257.1 343.7 1,179.69 2,155.86 220.07 2014 493915.5 478.91 1,647.45 18.22 1,045.19 2015 511620.4 449.31 1,736.19 11.71 985.69 2016 539740.6 525.95 2,215.74 21.28 984.9 2017 583554.3 528.24 2,171.37 25.25 1,023.78 2018 628756 610.15 2,230.15 20.69 1,076.72 2019 565917.65 772.38 2,622.54 11.31 1,247.37 2020 579492.08 1,049.68 3,191.37 11.88 1,343.59 2021 589430 1,457.82 4,089.29 23.64 1,708.38 source: cbn statistical bulletin and world bank database american journal of business management, economics and banking volume 26 july 2024 p a g e | 8 www.americanjournal.org 3.3 model specification with minor modifications, the model specification utilized in this investigation is derived from the research conducted by olowofeso el ta (2015), we state our model as follows; economic development = f (sectoral bank credit) 3.1 bringing the various sector and as well our proxy for economic development, we have; pci = f (scas, scms, scmq, sctg) 3.2 for estimation purpose, the model is rewritten as; pcit = ẟ0 + ẟ1scast + ẟ2scmst + ẟ3scbmqt + ẟ4scbtgt + ϵt 3.4 where, pci = per capita income scms = sectoral credit to manufacturing sector scas = sectoral credit to agricultural sector scmq = sectoral credit to mining and quarrying sector sctg = sectoral credit to trade/general commerce sector ϵt = error term of the estimate 3.4 methods of data analysis this study has been aimed at investigated correlation among sectoral bank credit and economic development of nigeria. to ascertain that, the following statistical tools with the aid of econometric software (eviews 10) was employed to support our analysis. the augmented dickey fuller (adf) unit root is used to determine the stationarity of our data set. it is accepted that the series is stationary should the adf test statistics be greater than the given critical values at 1%, 5% and 10% levels of significance respectively and the autoregressive distributive lag (ardl)and its associated long run bond test was applied to determine the short and long run relationship since there was presence of fractional integration in our variables. the granger causality test was used to determine the causal relationship between our explained and explanatory variables. 4.0 presentation of results 4.1 unit root test the augmented dickey fuller unit root test was employed to determine the stationarity of our employed variables. the table below shows the result of augmented dickey fuller unit root test. table 4.1 unit root test result variables adf statistic mackinnon critical value at probability order of integration 1% 5% 10% pci 4.282182 3.639407 2.951125 2.61430 0.0019 i(1) scas 0.373151 3.639407 2.951125 2.61430 0.9028 i(0) scms 1.867333 3.639407 2.951125 2.61430 0.3431 i(0) scmq 5.746720 3.661661 2.96411 2.61916 0.0001 i(1) sctg 4.750387 3.639407 2.951125 2.61430 0.0005 i(1) from the above table, we noticed a fractional order of integration as per capital income (pci), sectoral credit to mining and quarrying (scmq) and sectoral credit to trade and general commerce (sctg) american journal of business management, economics and banking volume 26 july 2024 p a g e | 9 www.americanjournal.org were integrated in the order of i(1) while sectoral credit to agricultural sector (scas) and sectoral credit to manufacturing sector (scms) were integrated in order of i(0) prompting the application of autoregressive distributive lag (ardl) and its associated long run bond test for further estimation. 4.2 autoregressive distributive lag (ardl) test the below table shows the result of our ardl test which was employed for further estimation in a bid to determine the short run association among our variables given their fractional order of integration. table 4.2 result of autoregressive distributive lag (ardl) test dependent variable: pci method: ardl date: 02/01/24 time: 19:22 sample (adjusted): 1987 2021 included observations: 34 after adjustments dependent lags: 1 (fixed) dynamic regressors (0 lag, fixed): fixed regressors: scas scms scmq sctg c variable coefficient std. error t-statistic prob.* pci(-1) 1.010618 0.104039 9.713869 0.0000 scas -88.53960 77.63415 -1.140472 0.2638 scms 29.20997 29.65565 0.984972 0.3331 scmq 12.24038 18.54373 0.660082 0.5146 sctg -4.021066 55.42073 -0.072555 0.9427 c 7974.017 5814.035 1.371512 0.1811 r-squared 0.992787 mean dependent var 229254.0 adjusted r-squared 0.991499 s.d. dependent var 224325.4 s.e. of regression 20682.51 akaike info criterion 22.87075 sum squared resid 1.20e+10 schwarz criterion 23.14011 log likelihood -382.8027 hannan-quinn criter. 22.96261 f-statistic 770.8153 durbin-watson stat 2.253750 prob(f-statistic) 0.000000 from above table, we observed from the global statistics that the sectoral bank credit employed jointly contributed to about 99.2% variation in our economic development represented by per capital income (pci) and that when adjustment was made, the variation became 99.1% as seen i the adjusted r-square. the durbin watson statistics was 2.253750 which falls within the acceptable region of 2, suggesting the need not to worry about serial correction problem while the f-statistics was significant at 5% significant level suggesting that the model has a global utility. from the upper region of our table above termed the relative statistics, we observed that sectoral credit to agricultural and trade and general commerce sectors were insignificantly negative while ank credit to manufacturing sector and mining and quarrying sector showed a positive coefficient. american journal of business management, economics and banking volume 26 july 2024 p a g e | 10 www.americanjournal.org 4.3 ardl long run bond test the long run bond test is carried to out help us determine the long run equilibrium association among our variables. below table represents the result of our long run bond test. table 4.3 result of ardl long run bond test f-bounds test null hypothesis: no levels relationship test statistic value signif. i(0) i(1) asymptotic: n=1000 f-statistic 1.289389 10% 3.8 3.8 k 0 5% 4.6 4.6 2.5% 5.39 5.39 1% 6.44 6.44 actual sample size 34 finite sample: n=35 10% 3.98 3.98 5% 4.945 4.945 1% 7.35 7.35 finite sample: n=30 10% 4.025 4.025 5% 5.07 5.07 1% 7.595 7.595 from the above table, we observed absence of a long run equilibrium association among sectoral bank credit and economic development in nigeria given the observed f-statistics to be lesser than the observed asymptotic values at 10%, 5%, 2.5%, and 1% respectively. 4.4 granger causality test the granger causality test is carried out to help us ascertained the direction of causality between the various sectoral bank credit employed and economic development. in other words, it is employed to helps know if the variables support/promote each other in the growth process. american journal of business management, economics and banking volume 26 july 2024 p a g e | 11 www.americanjournal.org table 4.4 granger causality test result pairwise granger causality tests date: 02/01/24 time: 20:31 sample: 1986 2021 lags: 2 null hypothesis: obs f-statistic prob. scas does not granger cause pci 34 2.14545 0.1352 pci does not granger cause scas 2.14456 0.1353 scms does not granger cause pci 34 0.60904 0.5507 pci does not granger cause scms 1.69880 0.2006 scmq does not granger cause pci 31 3.21911 0.0564 pci does not granger cause scmq 0.66637 0.5221 sctg does not granger cause pci 34 4.08755 0.0273 pci does not granger cause sctg 3.42494 0.0462 from the above, we observed absence of causality among sectoral bank credit to agricultural sector and economic development as well between sectoral bank to manufacturing sector and economic development while a unidirectional causality was observed between sectoral bank credit to mining and quarrying and economic development. a bidirectional causality was recorded between sectoral bank credit to trade and general commerce and economic development. 4.2 results discussions from the results, we observed that sectoral credit to agricultural and trade and general commerce sectors were insignificantly negative implying that bank credit to agricultural sector and trade and general commerce sectors are not important in predicting development of nigerian economy during the period covered by the study and that and as such, we can say that they do not contribute to the development of nigerian economy as seen in the work of stenphen and rodiat (2019) who reported negative influence of sectoral credit to general commerce on growth as well nwanji and okoli (2018) and abukar and kassim (2016) who reported no effect of sectoral bank credit on agricultural sector while bank credit to manufacturing sector and mining and quarrying sector showed a positive coefficient suggesting that bank credit to manufacturing sector and mining and quarrying sector are important tools in predicting economic development of nigeria and that the have the tendency of exerting development in nigeria. though they were insignificant but they positive coefficient suggest their potency in exerting development in nigeria as seen in majeed and iftikhar (2020) who reported insignificant positive influence of private sector bank loan on pakistan economic growth and okoyan and eze (2021) which reported insignificant linear influence of sectoral loan on bank performance in nigeria. the causality result revealed absence of causality among sectoral bank credit to agricultural sector and economic development as well between sectoral bank credit to manufacturing sector and economic development as seen in joseph (2020) who reported absence of causality among bank loan and growth in tanzania while a unidirectional causality was observed between sectoral bank credit to mining and quarrying and economic development as seen in paul (2017) with causality flowing from mining and quarrying sector bank credit to economic development implying that bank credit to mining and american journal of business management, economics and banking volume 26 july 2024 p a g e | 12 www.americanjournal.org quarrying sector promotes/ support economic development while economic development on the other hand do not support/promote credit to mining and quarrying. furthermore, a bidirectional causality was recorded between sectoral bank credit to trade and general commerce and economic development as also in paul (2017) suggesting that causality flows both ways between trade and general commerce bank credit and economic development. in other words, it implies that bank credit to trade and general commerce and economic growth promotes/support each other in their growth process in the sense that bank credit to trade and general commerce spore economic development and economic development on the other hand spore bank credit to trade and general commerce. 5.0 conclusion and recommendations 5.1 conclusions the study was centered on investigating the link among sectoral bank credit an economic growth in nigeria and using expo facto research design and some selected statistical tools for estimation purpose and we concludes from our results that there was no equilibrium long run relationship between sectoral bank credit and economic development in nigeria as seen in our long run bond test and further that sectoral bank credit to agricultural sector and trade and general commerce sector were insignificant and as well influenced economic growth negatively in nigeria during the period covered by the study while sectoral bank credit to manufacturing sector and mining and quarrying sector were positive and insignificant suggesting that sectoral bank credit to manufacturing and mining and quarrying sector influenced economic development positively in nigeria during the period covered by the study. from our causality result, we conclude that there is no causality among sectoral bank loan to agricultural sector and manufacturing sector, a unidirectional causality flowing from bank loan to mining and quarrying sector to economic development while a bidirectional causality was observed between bank credit to trade and general commerce and economic development in nigeria during the period covered by the study. 5.2 recommendations from the above conclusions, we recommend the need for proper awareness of the important of agricultural and trade and general commerce sector role in economic development of a nations and as such encourage bank to lend for investments in those key sectors secondly, the need to ensure that credits granted to each sectors are actually invested on projects in those sectors to avoid diversion of such credit for personal use as appropriate implementation of those credit in the specific sectors will help them to have significant influence on economic development. references 1. abubakar, a., & kassim, c. (2016). sectoral impact of bank credit in malaysia: ardl modelling approach. pertanika journal of social science and humanities, 24(8), 205-201 2. ajisafe, r. a., & okunade, s. o. (2020). finance-led growth hypothesis and domestic investment in nigeria. journal of emerging trends in economics and management sciences, 11(2), 40-52 3. ajose, k., & oyedokun, g. e. (2018). capital formation and economic growth in nigeria. accounting and taxation review, 2(2), 131-142 4. allen, f. ,& santomero, a. m. (1997). the theory of financial intermediation. journal of banking & finance, 21(11), 1461-4266, https://doi.org/10.1016/s0378-4266(97)00032-0 https://doi.org/10.1016/s0378-4266(97)00032-0 american journal of business management, economics and banking volume 26 july 2024 p a g e | 13 www.americanjournal.org 5. bethune, z., sultanum, b. & trachter, n. (2019). an information-based theory of financial intermediation. frb richmond working paper no. 19-12, https://ssrn.com/abstract=3473118 6. chant, j. (1992). the new theory of financial intermediation. in: dowd, k., lewis, m.k. (eds) current issues in financial and monetary economics. current issues in economics. palgrave, london. https://doi.org/10.1007/978-1-349-21908-7_3 7. duican, e. r. & pop, a. (2015). the implication of credit activity on economic growth in romania. procedia economics and finance, 30, 195-201 8. eckaus, r. s., & lefeber, l. (1962). capital formation: a theoretical and empirical analysis. the review of economics and statistics, 44(2), 113–122. https://doi.org/10.2307/1928194 9. fapetu, o. & obalade, a. a. (2015). sectoral allocation of bank credit and economic growth in nigeria. international journal of academic research, 5(6), 161-169 10. hall, m. (2023). how banking sector impact our economy. investopedia, https://www.investopedia.com/ask/answers/032315/what-banking-sector.asp 11. idachaba, o. i., olukoyun, g. a. & elam, w. g. (2019). influence of bank credit on the nigerian economy. american economic and social review, 5(10), 1-9 12. joseph, e. (2020). the effect of bank credit on the economic growth of tanzania. journal of finance and economics, 8(5), 211-221. doi: 10.12691/jfe-8-5-2 13. levine, r. (2004). finance and growth: theory and evidence. national bureau of economic research working paper series, working paper 10766 14. madsen, j. b., & ang, j. b. (2016). finance-led growth in the oecd since the nineteenth century: how does financial development transmit to growth? the review of economics and statistics, 98(3), 552–572. http://www.jstor.org/stable/24917034 15. majeed, s., & iftikhar, s. f. (2020). modelling the relationship between banking sector credit and economic growth: a sectoral analysis for pakistan. journal of economic corporation and development, 41(1), 145-178 16. nwanji, m. o., & okorie, g. c. (2018). deposit money banks sectoral allocation of credit and economic growth in nigeria. gouni journal of management and social sciences, 6 (2), 112-123 17. okoyan, k., & eze, p. g. (2021). sectoral loans and bank performance in nigeria. european journal of accounting, auditing and finance research, 9(2), 81-94 18. olowofeso, e. o., adeleke, a.o. & udoji, a. o. (2015). impact of private sector credit on economic growth in nigeria. cbn journal of applied statistics,6(2), 81-101 19. onuorah, a. c. (2013). bank credit: an aid to economic growth in nigeria. information and knowledge management, 3(3), 41-50 20. onwiodiokit, e. a. & otolorin, g. e. (2021). capital formation and economic growth in nigeria: an empirical re-examination. bullion, 45(2), 58-72 21. paul, n. (2017). commercial banks’ sectoral credit allocation and growth of nigerian economy: an impact analysis (1994-2015). international journal of arts and humanities, 6(4), 144-161 22. stephen, a. j. & rodiat, y. l. (2019). impact of sectoral allocation of banks' credit on economic growth in nigeria. international journal of contemporary accounting issues (formerly international journal of accounting & finance), the institute of chartered accountants of nigeria (ican), vol. 8(2), 96-113 23. thaci, l. (2022). bank loan types and economic growth: literature review. european journal of economics and business studies, 8(2), 156-171. https://ssrn.com/abstract=3473118 https://doi.org/10.1007/978-1-349-21908-7_3 https://doi.org/10.2307/1928194 https://www.investopedia.com/ask/answers/032315/what-banking-sector.asp http://www.jstor.org/stable/24917034 https://ideas.repec.org/a/ris/ijafic/0026.html https://ideas.repec.org/a/ris/ijafic/0026.html https://ideas.repec.org/s/ris/ijafic.html https://ideas.repec.org/s/ris/ijafic.html american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 172 www.americanjournal.org assessing nigeria's capacity to host mega events: a study of africa cup of nations (afcon), 2023 aremu, samuel olabisi, department of human kinetic, faculty of education, bamidele olumilua university of education, science and technology, ikere ekiti, ekiti state, nigeria orcid no: 0009-0008-5411-0770 ²osuoha, ifeanyi jude, department of hospitality and tourism management, faculty of agriculture, federal, university oye-ekiti, ekiti state, nigeria. orcid: 0009-0007-6913-6765 corresponding author's email; aremu.samuel@bouesti.edu.ng a b s t r a c t k e y w o r d s introduction: sporting events have assumed a major social-recreational and economic activities nationally and globally, making them to require sufficient capacity for the hosting. problem statement: however, mega sport events have witnessed failures across their strategic parts in nigeria, such as in poor facilities, funding debacle, quality of officiating personnel etc. objectives: this study therefore accessed and investigated nigeria's capacity in hosting mega sport events with particular focus on africa cup of nations (afcon), 2023 amongst others. methodology: the study adopted mixed research method by random survey of 150 participants (respondents) from ekiti state, nigeria using structured questionnaire in data collection. analysis: using descriptive analysis techniques such as pie, chart, result/findings: the study revealed that poor funding affected the abysmal level facilities, while poor officiating is as a result of quality of knowledge of personnel, inadequate planning and execution etc led to the noticed failure of afcon games. conclusion/recommendation: while conclude that nigeria hosting capacity in mega sporting event lies with sufficient resources including manpower, financial and physical assets, it is recommended the public and private sector investment, must be explored to ensure qualitative hosting capacity in nigeria, thereby helping future games to attain expectations of participants. capacity, facility, mega, sports, tourism. american journal of business management, economics and banking volume 35 april 2025 p a g e | 173 www.americanjournal.org introduction according to hemmonsbey and tichaawa (2018) sports tourism is the activity of visiting different places to watch or take part in athletic activities. it has a major impact on how economies and cultures are shaped worldwide. hemmonsbey and tichaawa (2018) note that sports tourism has emerged as a major global phenomenon, with high-profile events such as the 2023 africa cup of nations (afcon) capturing attention worldwide. in the context of nigeria, nyikana (2016) suggests that hosting such prestigious events can have both positive and negative impacts on the local population. according to marumo et al. (2015), the sports tourism sector has experienced substantial growth, not only as an industry but also as a significant area of research and a tool for fostering economic and social development in many communities and countries. as highlighted by tichaawa et al. (2018), sporting events are pivotal in fueling the growth of sports tourism. steinbrink et al. (2011) further emphasize that sports tourism, particularly mega-events, has become increasingly appealing to countries across africa, especially emerging nations. marumo et al. (2015) observe that, traditionally dependent on industries like mining and agriculture, many emerging economies have been propelled by globalization to diversify their economies, with sports tourism playing a central role in this transition. bob and swart (2010) argue that promoting sports tourism as part of a broader economic strategy can create event-driven economies, thereby spurring growth and development in the host country. the pursuit of hosting sports tourism events by emerging economies is often based on the belief that such events offer avenues for both short-term and long-term economic benefits, such as tourism revenue, infrastructure development, and job creation (diedrich & garciabuades, 2009). studies of major sporting events have gained momentum in recent years due to the extensive media attention directed at the countries and destinations hosting these events (yen & kerstetter, 2009). additionally, the potential political and socio-economic benefits that successful event hosting brings have been widely publicized (kumar & hussain, 2014; nyikana & tichaawa, 2023; salgado-barandela et al., 2021). wang and jin (2019) assert that such sports events have been instrumental in the development of several destinations. coates (2012), however, posits that the benefits of hosting sports events are closely linked to the scale of the event, with smaller community events yielding different outcomes than hallmark or mega-events. hallmark events, typically destination-bound and held regularly, contrast with mega-events like the fifa world cup, the olympics, and afcon, which rotate between countries and attract global attention (yao & schwarz, 2018). this international appeal explains the highly competitive nature of bidding to host such events (arnegger & herz, 2016; jago et al., 2010). johnston et al. (2021) highlight the critical role that host communities play in the successful organization of sports events, with local support being essential for fostering a festive atmosphere and creating lasting memories for both residents and visitors (al-emadi et al., 2017; gursoy & kendall, 2006). tichaawa et al. (2018) note that sports tourism is increasingly being utilized to revitalize both rural and urban communities in emerging economies. according to njoroge et al. (2017), the benefits of hosting sports events extend beyond economic gains, with long-term advantages that contribute to sustainable development. for instance, sport tourism can accelerate the development of infrastructure and the establishment of leisure and sporting facilities, which, in turn, attract investment in the local hospitality and catering industries. american journal of business management, economics and banking volume 35 april 2025 p a g e | 174 www.americanjournal.org bob and swart (2010), njoroge et al. (2017), and weed and bull (2009) emphasize that such investments enhance the attractiveness of the destination, fostering the growth of smallto mediumsized businesses, which are crucial to local economic development (tichaawa, 2017). bouhaouala (2015) adds that, in many economies, sport tourism serves as a driver of growth, creating socioeconomic opportunities such as employment and business prospects for local communities. the positive impacts of sports tourism extend not only to individuals but also to entire communities and nations. one of the primary benefits is the boost to the local economy. hosting sports events like afcon can attract significant numbers of visitors, resulting in increased spending on accommodation, transportation, food, and souvenirs (adebayo & akinlabi, 2023). this influx of tourists creates job opportunities in sectors such as hospitality, tourism, and retail, providing a source of income for many nigerians. adebayo and akinlabi (2023) further note that one of the key advantages of sports tourism is its ability to stimulate economic growth through increased revenue from tourism, with visitors contributing to local economies by attending matches, staying in hotels, dining in restaurants, and purchasing goods. however, sports tourism has a fair share of environmental problems. as noted by osuoha, et al (2025) sports tourism has potential for overcrowding, pollution and therefore the need for effective waste management during such events. nigeria’s enthusiasm for football, coupled with its cultural diversity, positions the country as a potential powerhouse in the african sports landscape. afcon, africa's premier football tournament, provides an invaluable opportunity for nigeria to showcase its football culture, promote tourism, and foster international relations (ogunbiyi, 2022). however, despite the country’s passion for football, questions have arisen regarding its ability to host large-scale sporting events like afcon. nigeria's previous bids for the 2025 and 2027 afcon tournaments were unsuccessful, highlighting the need for a critical assessment of its preparedness for hosting such events. recent years have seen nigeria make strides in improving its infrastructure and institutional readiness to host large-scale events. in light of its failure to secure the 2025 and 2027 afcon tournaments, there is a pressing need to evaluate nigeria’s readiness for hosting afcon 2023. this study aims to examine nigeria's current capabilities, challenges, and opportunities in the context of hosting this prestigious tournament, thereby providing a comprehensive analysis of the feasibility of hosting afcon 2023. while nigeria is considered a footballing giant in africa, doubts persist regarding the country's ability to host mega sports events like afcon. the country has encountered challenges in infrastructure development, event management, and meeting the international standards set by the confederation of african football (caf). despite its rich footballing culture and large fan base, nigeria's attempts to host afcon have been thwarted by various obstacles. this raises the question of whether the country has the necessary resources, infrastructure, and organizational frameworks to successfully host a tournament of this magnitude. historically, nigeria has had limited success in hosting large-scale international sporting events. nevertheless, the country has continued to pursue such opportunities in order to boost tourism, stimulate local economies, and enhance its global reputation (akinwumi, 2022). afcon, as one of the most widely followed football tournaments in africa, presents nigeria with a significant opportunity to leverage its passionate fan base and tourism potential. in recent years, the nigerian government has made significant efforts to improve infrastructure, with the national sports commission and state governments spearheading projects to modernize existing stadiums and build new facilities in major cities such as lagos, abuja, and benin city. despite these improvements, nigeria continues to face american journal of business management, economics and banking volume 35 april 2025 p a g e | 175 www.americanjournal.org challenges, particularly regarding the timely completion of infrastructure projects, the maintenance of existing facilities, and the coordination of logistics and security for large events (nwachukwu, 2021). nigeria’s inability to secure hosting rights for afcon 2025 and 2027 underscores the critical gaps that need to be addressed before the country can host future mega-events. these setbacks highlight the need for strategic planning, thorough evaluation of facilities, and increased collaboration between government and private sector stakeholders. the nigerian government has responded by expediting infrastructural developments, with the lagos arena and ongoing renovations to key stadiums being prime examples of efforts aimed at enhancing nigeria's capacity to host international sporting events. given the rising competition for hosting rights to major sporting events, it is crucial to understand nigeria’s capacity to host afcon 2023 successfully. this research evaluates nigeria’s infrastructure, governmental policies, and institutional readiness, providing actionable recommendations for enhancing the country's chances of securing future bids for similar events. furthermore, there is a notable gap in empirical research regarding nigeria's alignment with the institutional, infrastructural, and economic demands of hosting a mega sporting event. this study will identify the key factors influencing nigeria’s ability to host afcon 2023 and evaluate the challenges and possible solutions to these obstacles. materials and method this research was conducted in ado-ekiti, the capital of ekiti state, in southwestern nigeria. as one of the state's most developed urban centers, ado-ekiti holds both historical and modern significance. it was once the seat of the pre-colonial ekiti kingdom and is well known for its rich cultural heritage. the city is predominantly inhabited by the yoruba ethnic group and has an estimated population of over 500,000, making it one of the more populous cities in nigeria. ado-ekiti boasts a thriving sports culture, particularly in football, and is home to several sports facilities and active fan clubs that support and participate in sporting events at both urban and rural levels. this active engagement with sports makes ado-ekiti an ideal location for studying the awareness of sports tourism. the study utilized a descriptive and survey-based research design, allowing for the systematic collection of primary data through a structured questionnaire. this approach was chosen to effectively gather the participants' perceptions on nigeria's capacity to host mega events: a feasibility study of 2023 afcon. the research was conducted across several communities within the ado-ekiti local government area of ekiti state. due to logistical constraints, it was not possible to study the entire population. as a result, the study focused on a sample of 150 respondents selected from different communities within the local government area. to address the research objectives and variables, both qualitative and quantitative data collection and analysis methods were employed. this mixed-methods approach provided a more comprehensive understanding of the subject, enabling triangulation and enhancing the reliability of the findings. although the study is limited to ado-ekiti, the insights gained may apply to other urban centers in nigeria that share similar socio-cultural dynamics and levels of sports engagement. cochran’s equation of finite population was used to determine the sample of the study. the formula is stated below: american journal of business management, economics and banking volume 35 april 2025 p a g e | 176 www.americanjournal.org n0 = 𝑍2𝑝𝑞 𝑒2𝑁 n0 = 𝑆𝑆 1+ (𝑆𝑆−1) 𝑃𝑜𝑝 where ss = sample size pop = population n = sample size z = z value of confidence level. p = estimated proportion of an attribute present in the population q = 1-p e = desired level of precision expressed in decimal. n= population size. using a 90% confidence interval; z = 1.645 e = ± 10% = 0.1 p = 0.5 (maximum variable) q = 10.5 = 0.5 n = 0.5 n0 = (2.53)2(0.5)(0.5) (0.10)2 = 160 n0 = 160 1+ (160−1) 4300 = 153.85 ὡ 150 the sampling procedure employed in this study involved the random selection of residential divisions within the ado-ekiti local government area. a simple random sampling technique was adopted to ensure that each unit of the population had an equal chance of being selected, thereby enhancing the representativeness of the sample. primary data served as the main source of information for this study. this data was collected using a structured questionnaire, which was administered to residents across various communities within the study area. the questionnaire served as the principal research instrument and was designed to elicit responses relevant to the research objectives. the questionnaire consisted of both close-ended and open-ended questions. the close-ended questions formed the structured core of the instrument and were primarily used to facilitate quantitative analysis. the open-ended questions, on the other hand, were incorporated to capture more nuanced responses and to provide a more holistic understanding of the participants’ perspectives. the items in the questionnaire addressed key issues related to assessing nigeria's capacity to host mega events: a feasibility study. of 2023 afcon. the questionnaire utilized a likert scale ranging from yes to no allowing respondents to express the degree of their agreement with each statement. for the purpose of data analysis, the study employed the spearman’s rank correlation coefficient. this statistical technique was selected due to the quantitative nature of the data collected, which comprised ordinal variables that could be ranked. spearman’s correlation is particularly appropriate when assessing the strength and direction of association between two ranked variables. this method was deemed suitable as the study fulfilled the required conditions for its application, including: an adequate sample size (minimum of 10 observations), independent observations, data presented in frequency form, and use of the entire dataset without omissions. the technique also allows american journal of business management, economics and banking volume 35 april 2025 p a g e | 177 www.americanjournal.org for the testing of hypotheses by comparing observed values against expected values under the assumption that the null hypothesis is true. moreover, degrees of freedom, determined by sample size, were considered in interpreting the significance of the correlation coefficients. the use of this technique enabled the researcher to examine the strength of association between variables and provided insights into the overall distribution of responses in relation to the research hypotheses. due to the nature and number of the variables involved in this study, quantitative data analysis was used to process the data. for the quantitative analysis statistical package for social sciences (spss version 17) was used to process the data. for the lower version of analysis for the perception of respondent’s percentages were used to analyse the data. this means that the analysis was done on the content of the data which were collected. results figure 1 illustrates the response rate recorded during the data collection phase of this study. out of a total of 150 questionnaires distributed across the selected study locations, 143 questionnaires were successfully retrieved, representing a response rate of 95.33%, while 7 questionnaires (4.67%) were not returned. this high response rate was facilitated by the method of administration. the researcher personally distributed the questionnaires and waited while participants completed them, enabling immediate collection. this approach minimized loss and ensured that the intended sample size was maintained, thereby preserving the representativeness of the target population and enhancing the validity and reliability of the study’s findings. all retrieved questionnaires were subsequently organized, coded, and entered into the statistical package for social sciences (spss) for systematic analysis. the data were then interpretively analyzed to derive meaningful insights in line with the study’s objectives. figure 1. response rate of respondent during the course of the study 95.33% 4.67% response rate of respondent respondent non-respondent american journal of business management, economics and banking volume 35 april 2025 p a g e | 178 www.americanjournal.org personal details of respondents table 1. personal details of respondent during the course of this study variables categories frequency percentage (%) sex male female 91 52 63.64 36.36 total 143 100% age bracket 18-30 years 31-50 years 51 and above 38 65 40 26.57 45.46 27.97 total 143 100% educational attainment ssce nce/ond b.sc/b.ed ph.d no formal 30 37 51 5 20 20.98 25.87 35.66 3.50 13.99 total 143 100% nationality nigerian foreigner 137 6 95.80% 4.20% total 143 100% marital status single married divorced 56 67 20 39.16 46.85 13.99 total 143 100% total 143 100% demographic profile of respondents the presentation and analysis of the demographic characteristics of respondents are summarized in table 1. the study sought to determine the gender distribution of participants. as indicated, 63.64% (n = 91) of the respondents were male, while 36.36% (n = 52) were female. regarding age distribution, 26.57% (n = 38) of respondents fell within the 18–30-year age bracket, 45.46% (n = 65) were aged between 31 and 50 years, and 27.97% (n = 40) were aged 51 years and above. in terms of educational attainment, 20.98% (n = 30) of respondents held a senior secondary school certificate (ssce), 25.87% (n = 37) possessed an ordinary national diploma (ond) or nigeria certificate in education (nce), while 35.66% (n = 51) held a bachelor’s degree (b.sc./b.ed). a smaller percentage, 3.50% (n = 5), were doctor of philosophy (ph.d.) holders, and 13.99% (n = 20) had no formal education. the nationality of respondents revealed that the vast majority, 95.80% (n = 137), were nigerian citizens, whereas 4.20% (n = 6) were non-nigerians. marital status distribution showed that 39.16% (n = 56) of respondents were single, 46.85% (n = 67) were married, and 13.99% (n = 20) were divorced at the time the study was conducted. american journal of business management, economics and banking volume 35 april 2025 p a g e | 179 www.americanjournal.org evaluation on the feasibility of nigeria to host a footballing competition like afcon table 2: respondents’ knowledge on whether nigeria's current infrastructure status is in advanced and efficient condition to host a competition like afcon is nigeria's current infrastructure status is in advanced and efficient condition to host a competition like afcon? responses frequency percentage yes 105 73.43 no 38 26.57 total 143 100% table 2 above shows percentage distribution of responses to if nigeria's current infrastructure status is in advanced and efficient condition to host a competition like afcon. 73.43% (105) of the respondents reported ‘yes’ while the remaining 26.57% (38) of the respondents reported ‘no’ this revealed that nigeria's current infrastructure status is in advanced and efficient condition to host a competition like afcon. table 3: respondents’ knowledge on whether nigeria has the financial capability to host a footballing competition like afcon in nigeria does nigeria have the financial capability to host a footballing competition like afcon in nigeria? responses frequency percentage yes 88 61.54 no 55 38.46 total 143 100% table 3 above shows percentage distribution of responses to if nigeria has the financial capability to host a footballing competition like afcon in nigeria. 61.54% (88) of the respondents reported ‘yes’ while the remaining 38.46% (55) of the respondents reported ‘no’. this depicts that nigeria has the financial capability to host a footballing competition like afcon in nigeria. table 4. respondents’ knowledge on whether nigeria is highly prepared and equipped in terms of meeting security requirements to host a competition like afcon is nigeria highly prepared and equipped in terms of meeting security requirements to host a competition like afcon? responses frequency percentage yes 121 84.62 no 22 15.39 total 143 100% american journal of business management, economics and banking volume 35 april 2025 p a g e | 180 www.americanjournal.org table 4 above shows percentage distribution of responses to if nigeria is highly prepared and equipped in terms of meeting security requirements to host a competition like afcon. 84.62% (121) of the respondents reported ‘yes’ while the remaining 15.39% (22) of the respondents reported ‘no’. this sustained that nigeria is highly prepared and equipped in terms of meeting security requirements to host a competition like afcon. table 5: respondents’ knowledge on whether nigeria is highly prepared and equipped in terms of influx of population to host a competition like afcon is nigeria highly prepared and equipped in terms of influx of population to host a competition like afcon? responses frequency percentage yes 119 83.22 no 24 16.78 total 143 100% table 5 above shows percentage distribution of responses to whether nigeria is highly prepared and equipped in terms of influx of population to host a competition like afcon. 83.22% (119) of the respondents reported ‘yes’ while the remaining 16.78% (24) of the respondents reported ‘no’. this sustained that nigeria is highly prepared and equipped in terms of influx of population to host a competition like afcon. table 6: respondents’ knowledge on whether nigeria is highly prepared and equipped in terms implementation of strict organizational structure to host a competition like afcon. is nigeria highly prepared and equipped in terms implementation of strict organizational structure to host a competition like afcon? responses frequency percentage yes 129 90.80 no 14 9.20 total 143 100% table 6 above shows percentage distribution of responses to whether nigeria is highly prepared and equipped in terms implementation of strict organizational structure to host a competition like afcon. 90.80% (129) of the respondents reported ‘yes’ while the remaining 9.20% (14) of the respondents reported ‘no’. this sustained that nigeria is highly prepared and equipped in terms implementation of strict organizational structure to host a competition like afcon. american journal of business management, economics and banking volume 35 april 2025 p a g e | 181 www.americanjournal.org hypothesis testing variables σx σx2 σy2 σxy r-val the feasibility of nigeria to host a footballing competition like afcon 699 3189 5674 0.91 impacts on an average nigerian 184 2815 significant 0.05 level, critical r=0.162, df =474. from the result above table 7, the calculated r-value of 0.91 is higher than the critical r-value of 0.162 at 0.05 levels of significance and 474 degree of freedom. the null hypothesis is rejected, while the alternate hypothesis which revealed that hosting afcon footballing competition has a significant impact on the average nigerian. model r r square adjusted r square std. error of the estimate change statistics r square change f change df1 df2 sig. f change r square change f change df1 df2 1 0.392a 0.132 0.25 0.782 .00000 8.011 11 452 .000 0.123. a predictors: (constant), afcon footballing competition b dependent variable: tourism development and socio-cultural and economic development the result of the regression analysis on table 8 shows a yielded coefficient of regression (r) of 0.392 and a multiple regression r-square (r2) of 0.132, and adjusted r2 of 0.25, at 0.01 level of significance, the result is significant, the result also shows that an analysis of variance (anova) of the multiple regressions produced an f-ratio of 8.819, while the f-critical value is 1.91 (2-tailed), since the calculated f-value of 8.011 is greater than the critical f-value of 1.91, at 0.05 significant level, (2tailed), the result is also significant at 0.05 level. the significance of this result is that the afcon footballing competition has a significant impact on the average nigerian. discussion the results of this study on the feasibility of nigeria hosting a major football tournament such as the africa cup of nations (afcon) provide compelling evidence that the country possesses the foundational capacity to successfully organize and manage an event of such magnitude. findings revealed that nigeria’s infrastructure is currently in an advanced and efficient condition, encompassing stadium facilities, transport networks, hospitality structures, and technological systems—all of which are crucial for hosting international sporting events. the findings also indicate that nigeria has the financial capability required to undertake the comprehensive planning and execution involved in organizing a competition like afcon. the availability of public and private sector investment, coupled with strategic fiscal planning, enhances nigeria’s capacity to meet the economic demands of such a tournament. the study further established that nigeria is well-equipped in terms of meeting international security requirements. participants highlighted the presence of responsive security agencies, intelligence coordination, and emergency management systems as evidence of the country's preparedness to ensure american journal of business management, economics and banking volume 35 april 2025 p a g e | 182 www.americanjournal.org the safety of players, officials, tourists, and local attendees. this is particularly important given the scale of population influx that such events typically attract. nigeria’s ability to manage large crowds, ensure transportation fluidity, and provide accommodation and health services demonstrates its readiness for high-level sporting events. furthermore, the implementation of strict organizational structures was identified as a strength. respondents emphasized the role of national bodies such as the nigeria football federation (nff), in collaboration with the ministry of youth and sports development, in laying down protocols for logistics, stakeholder coordination, and compliance with confederation of african football (caf) requirements. these organizational frameworks are integral to ensuring smooth planning and execution across various sectors. these findings are in alignment with eshetu (2014), who highlighted that certain african countries, including nigeria, have evolved in their institutional and infrastructural preparedness for hosting megaevents due to sustained investment and policy reforms. similarly, hemmonsbey and tichaawa (2018) emphasized that emerging economies in africa are increasingly leveraging sport tourism and megaevents as vehicles for development, supported by growing infrastructure and organizational sophistication. moreover, ogunbiyi (2022) asserts that nigeria’s football culture, economic potential, and population size make it a natural candidate for hosting continental tournaments, while adebayo and akinlabi (2023) report that the country's hospitality and tourism sectors are experiencing rapid growth spurred by efforts to attract international attention. these improvements are especially visible in urban centers like lagos, abuja, and port harcourt, where stadia, transport systems, and accommodation facilities have been upgraded to meet global standards (nwachukwu, 2021). additionally, adeola and adesina (2020) affirm that nigeria's transportation and urban planning sectors are increasingly capable of supporting large-scale events, owing to recent investments in intermodal systems and smart city initiatives. the nation’s ability to host large national festivals and international fixtures in the past is also a testament to its operational readiness (suleiman and adigun, 2021). according to nyikana and tichaawa (2023), nigeria’s previous bids for afcon demonstrate a strategic commitment to enhancing its position in africa’s sports tourism landscape. overall, this study reinforces the notion that nigeria is not only willing but also increasingly capable of hosting a mega-sporting event like the afcon. the findings align with a body of existing literature that acknowledges the country’s advancements in infrastructure, financial readiness, organizational structure, and security apparatus. with sustained commitment and strategic planning, nigeria can position itself as a reliable host for future international sporting competitions. in addition, the negative impact of sports tourism should also be considered. as noted by osuoha, et al (2025), sports events such as afcon is a source of pollution and overcrowding which have negative consequences on the environment. efforts should therefore be made to limit the negative impacts of sports tourism on the environment by the relevant stakeholders. conclusion the feasibility study examining nigeria's capacity to host a major football tournament like the africa cup of nations (afcon) has produced valuable insights that underscore the nation’s readiness across multiple critical dimensions. the findings demonstrate that nigeria, despite past setbacks in securing american journal of business management, economics and banking volume 35 april 2025 p a g e | 183 www.americanjournal.org hosting rights, possesses the infrastructural, financial, organizational, and security capabilities required to successfully organize and manage a continental football competition. the research revealed that nigeria’s infrastructural landscape—ranging from modern stadia and road networks to upgraded hospitality facilities—is at a level that can support the influx of international visitors, athletes, and dignitaries. this infrastructural development, particularly in urban centers such as lagos, abuja, and benin city, affirms the nation’s commitment to aligning with global standards in sports event hosting. moreover, the financial assessment indicates that nigeria has both public and private funding mechanisms that can be leveraged for large-scale event planning, especially with increasing government interest in promoting sports tourism as a vehicle for economic diversification. security preparedness emerged as another core strength, with respondents affirming the functionality of nigeria’s security agencies and their record in managing mass gatherings and high-profile events. the ability to coordinate crowd control, emergency response, and surveillance systems further enhances nigeria’s credibility as a potential host nation. additionally, the presence of well-structured sports governance institutions, particularly the nigeria football federation (nff), contributes significantly to the overall organizational readiness of the country. these bodies serve as the backbone for regulatory compliance, stakeholder engagement, and logistical execution, ensuring that hosting mandates align with the confederation of african football (caf) expectations. importantly, these findings are consistent with earlier research and expert commentaries (eshetu, 2014; hemmonsbey & tichaawa, 2018; ogunbiyi, 2022; adebayo & akinlabi, 2023), which emphasize that nigeria’s sociopolitical will, growing infrastructure, and strategic policy directions make it a strong candidate for mega-sporting events. while nigeria may have failed in its bids to host afcon 2025 and 2027, these setbacks offer important lessons that can help refine future hosting strategies. strategic planning, early stakeholder coordination, and transparent communication will be essential in overcoming the administrative and logistical challenges that previously undermined such efforts. however, it is also crucial to acknowledge that hosting afcon or any mega-event is not without challenges. delays in infrastructure completion, issues related to governance and corruption, and lapses in coordination across tiers of government must be proactively addressed. in this regard, public-private partnerships, consistent policy implementation, and community engagement are recommended pathways for ensuring successful hosting experiences. furthermore, increased collaboration between local authorities, the private sector, and international sports governing bodies will be indispensable to improving nigeria's global sports image and enhancing its competitiveness in future bids. in conclusion, this study affirms that nigeria holds significant potential to host the africa cup of nations and other mega sporting events. the convergence of infrastructure development, financial capacity, security readiness, and institutional frameworks positions the country as a serious contender in the african sports hosting arena. with strategic reforms, capacity building, and consistent political will, nigeria can transform its passion for football into a socio-economic tool for national growth, regional influence, and global recognition. thus, the findings of this study not only validate previous scholarly assertions but also serve as a call to action for policy makers, sports administrators, and stakeholders to build a sustainable and inclusive model for hosting major sports events in nigeria. however, as noted by osuoha, et al (2025) efforts aimed at protecting the environment from pollution should be activated by the organisers of mega events in nigeria. american journal of business management, economics and banking volume 35 april 2025 p a g e | 184 www.americanjournal.org recommendation the following recommendations have been provided: 1. nigeria should invest in modernizing and expanding stadiums and training facilities to meet international standards required for hosting mega-events. 2. improved road networks, airport facilities, and a wider range of quality accommodation options are essential to support large-scale tourist inflow during major events. 3. a robust, technology-driven security framework combined with effective emergency preparedness is critical to ensuring the safety of athletes, fans, and officials. 4. hosting mega-events requires seamless collaboration between government ministries, security agencies, private stakeholders, and international sports bodies. 5. reliable electricity supply and high-speed internet access across host cities are necessary to support event operations, media coverage, and fan engagement. 6. training for event managers, volunteers, hospitality staff, and emergency responders is essential to enhance service delivery and event professionalism. 7. the government should encourage private sector investment in event infrastructure and services through policy incentives and clear regulatory frameworks. 8. a dedicated national body should be formed to plan, coordinate, and evaluate the feasibility of hosting future mega sporting events, including bidding processes and legacy planning. references 1. adebayo, o., & akinlabi, t. 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(2006). urban entrepreneurship, corporate interests and sports mega-events: the thin policies of competitiveness within the hard outcomes of neoliberalism. sociological review, 54(2, suppl), 59–70. 13. hemmonsbey, j., & tichaawa, t. m. (2018). sport tourism and mega-event impacts on host cities: a case study of the 2010 fifa world cup in south africa. geojournal of tourism and geosites, 22(2), 488–502. 14. jago, l., dwyer, l., lipman, g., van lill, d., & vorster, s. (2010). optimising the potential of mega-events: an overview. international journal of event management research, 5(1), 1–13. 15. johnston, r. j., twynam, g. d., kellett, p., & ritchie, b. w. (2021). community perceptions of sport tourism development. sport in society, 24(7), 1043–1061. 16. kumar, r., & hussain, a. (2014). economic impact of sports events on host cities: the case of commonwealth games 2010. international journal of business and management invention, 3(1), 23–30. 17. marumo, p. o., marumo, m., & maphunye, k. j. (2015). the role of sport tourism in promoting economic development: a south african perspective. african journal of hospitality, tourism and leisure, 4(1), 1–11. 18. njoroge, j. m., ndivo, r. m., & manyara, g. (2017). the role of sport in sustainable tourism development in east africa. journal of sustainable tourism, 25(5), 667–683. 19. nyikana, s. (2016). sport tourism and its impacts on local communities: a south african perspective. journal of hospitality and tourism management, 28, 10–17. 20. nyikana, s., & tichaawa, t. m. (2023). re-evaluating sport tourism development strategies in emerging african economies. tourism planning & development, 20(2), 165–181. 21. ogunbiyi, a. (2022). football, tourism and national branding: opportunities and challenges in nigeria. african journal of sports studies, 11(1), 12–27. 22. osuoha, i. j., nnamdi s. c., smitha a. m., jegede a. o., hassan c. s., & aremu s. o. (2025). environmental impacts of sports tourism: a case study of overcrowding, pollution and waste management during 2023 afcon. academicia globe: inderscience research , 6(4), 20–34. retrieved from https://agir.academiascience.org/index.php/agir/article/view/1652 23. salgado-barandela, j., barajas, á., & sánchez-fernández, p. (2021). mega sporting events and their impact on host city branding. journal of destination marketing & management, 20, 100594. 24. steinbrink, m., haferburg, c., & ley, a. (2011). festivalisation and urban restructuring in the global south: the fifa world cup 2010 in south africa. globalizations, 8(4), 465–479. 25. suleiman, m., & adigun, o. (2021). managing mega sports events in nigeria: issues and prospects. journal of event and venue management, 3(1), 35–47. 26. tichaawa, t. m. (2017). sport tourism and the development agenda in africa: a policy perspective. african journal of hospitality, tourism and leisure, 6(1), 1–14. 27. tichaawa, t. m., swart, k., & bob, u. (2018). sport events and their socio-economic legacy: the 2013 africa cup of nations. african journal for physical activity and health sciences, 24(1), 123–141. 28. wang, y., & jin, b. (2019). impact of international sporting events on tourism development: evidence from china. journal of policy research in tourism, leisure and events, 11(3), 321–338. 29. weed, m., & bull, c. (2009). sports tourism: participants, policy and providers (2nd ed.). oxford: elsevier. https://agir.academiascience.org/index.php/agir/article/view/1652 american journal of business management, economics and banking volume 35 april 2025 p a g e | 186 www.americanjournal.org 30. yao, q., & schwarz, e. (2018). mega sport events and destination image: a comparative study of host cities. journal of destination marketing & management, 9, 1–10. 31. yen, c. l., & kerstetter, d. l. (2009). international sport tourists’ attitudes toward sport event sponsors. journal of sport management, 23(1), 57–73. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 97 www.americanjournal.org the 21st century: space exploration, competition and threats shamsiyev saidakbar the university of world economy and diplomacy student of international relations saidakbarshamsiyev@gmail.com orcid 0009-0006-5309-5447 a b s t r a c t k e y w o r d s this article analyzes the 21st-century space exploration efforts by major powers, their struggle, competition for dominance in outer space, as well as the formation of alliances among states in this endeavor. it examines the spatial capabilities and potential of leading nations, the increasing number of military-purpose satellites, and future space programs. furthermore, the article explores the strategies of the united states in pursuing space hegemony, the innovative projects and initiatives of china rapidly closing the gap, and the efforts of russia to preserve the legacy of the soviet space era. satellite, starlink, spacex, satellite communication system (scs), military satellite, sputnik, space race. introduction in the 1960s, humankind made its first launching outer space, signaling that the conquest of space would define the centuries to come. this pivotal moment marked the beginning of a new era in human history. it was the dawn of the information age. the emergence of the global information network can be directly traced to humanity’s initial exploration of space. satellites launched into orbit not only began providing the earth with valuable information but also undertook diverse functions, such as monitoring the planet, capturing images, and transmitting data to designated destinations. simultaneously, major powers began using these space technologies to enhance their military capabilities, leveraging them for strategic advantage. the great powers, always mindful of the need to prepare for the worst1, utilized space technologies to support their land, air, and naval forces with precise location coordinates, navigation systems, as well as imagery and video data. thus, humanity began to employ the very space-based structures it had launched for a variety of purposes, ranging from civilian to military applications. to begin with, a brief overview of humanity’s history in space exploration reveals that, while theories about reaching space had been proposed in various places, the soviet union (ussr) was the first to 1 thatcher, m. (2003). statecraft : strategies for a changing world. london: harper collins. american journal of business management, economics and banking volume 32 january 2025 p a g e | 98 www.americanjournal.org make significant advancements in this field. in 1957, the soviet state became the first to launch a spacecraft into space, thus inaugurating the space age. the soviet union also achieved the historic milestone of sending the first human into space: in 1961, yuri gagarin became the first person to venture beyond earth. between 1961 and 1991, the soviet union laid the foundation for the space industry2. the country’s space programs were directed by the central communist party, which oversaw their implementation for both military and social purposes. funding for these programs came from ministries and the state budget. the soviet union—and later modern-day russia—used spacecraft for several purposes, including space exploration, advancing space sciences, maintaining human presence in space through logistical missions, and acquiring critical spatial data such as navigation (via navigation satellites), geodetic measurements (via geodetic satellites), telecommunications, earth observation, and national security intelligence. overall, the ussr was the first nation in the world to develop comprehensive space exploration programs, setting the stage for the future of space science and technology. the united states represents the second-largest hub in the conquest of space. in 1958, the u.s. introduced the project score initiative, developed by the ballistic air force division (afbmd). the first defense satellite communications system (dscs) was launched in 1962, followed by dscs ii in 1971. this program was later renamed service life enhancement program (slep)3. from the very beginning, u.s. space exploration programs were divided into two primary domains: military-purpose satellites and civilian space programs. this dual approach became the foundation of america’s strategy, which, by the 1990s, solidified the country’s position as the world’s leading space power. to coordinate its military space objectives, the united states established nasa (national aeronautics and space administration) on october 1, 19584. through its military space programs, the u.s. has leveraged space technology to support its land, air, and naval forces with critical and specialized information. additionally, these programs have enabled the u.s. to monitor other nations, collect global data for navigation and imaging, and conduct comprehensive earth observation activities. after the dissolution of the ussr, the commonwealth of independent states (cis) was established on december 8, 1991, under russia’s leadership. within this framework, the minsk agreement was signed, stipulating that space communication systems developed during the soviet era should be shared equally among the member states. to oversee this, the cis space monitoring agency was established in 1999. alongside this, russia also formed the russian space agency (rsa) on february 25, 19925. this organization is responsible for launching subsequent satellites, collecting data, and regulating space activities. one of russian key strategies in the post-soviet era was to place spacecraft in earth’s orbit as close as possible. this proximity facilitates much faster data exchange and allows ballistic missiles to be accurately targeted during times of war or military conflict. it is noteworthy that the soviet union was the first to develop intercontinental ballistic missiles (icbms), and its hydrogen bomb was significantly more powerful than that of the united states. during the cold war, the soviet 2 history and current status of the russian space program. (1957). available at: https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf. 3 (no date) the u.s. air force and the military space program. available at: https://media.defense.gov/2010/dec/02/2001329901/-1/-1/0/afd-101202-013.pdf (accessed: 11 january 2025). 4 nasa (2020). nasa: 60 years & counting beginnings. [online] nasa. available at: https://www.nasa.gov/specials/60counting/begin.html. 5 history and current status of the russian space program. (1957). available at: https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf https://media.defense.gov/2010/dec/02/2001329901/-1/-1/0/afd-101202-013.pdf https://www.nasa.gov/specials/60counting/begin.html https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf american journal of business management, economics and banking volume 32 january 2025 p a g e | 99 www.americanjournal.org union’s space missile program was primarily intended for military purposes. the asat project, initiated in 1963, aimed to place nuclear and intercontinental ballistic missiles in space and develop anti-satellite programs to protect against potential missile attacks. the soviet union used this project as leverage to exert pressure on the united states. however, in 1967, the outer space treaty was signed, which declared that space is the domain of all humankind, prohibiting any nation from claiming ownership of it. it also banned the deployment of military weapons in space. despite this agreement, during the current competition between the united states and russia, vladimir putin has been pushing forward with the asat project6. today, russia continues to operate many of the space communication systems and spacecraft established during the soviet era. additionally, russia has launched several new satellites, such as the leo (low-earth-orbit) program, which enables rapid imaging of the earth, and reconnaissance satellites capable of high-resolution photography and digital transmission. russia also operates satellites like vostok (including resurs-f, which operates for 2–3 weeks), kosmos 2290, and zenit satellites for oceanic reconnaissance, capable of operating at approximately 400 km altitude with a 2 km resolution. other satellites, such as the tsiklon (650 km altitude) and zenit (850 km altitude), serve electronic reconnaissance purposes7. as of 2023, russia has a total of 181 satellites, with 110 dedicated to military purposes. for comparison, the united states operates 247 military satellites, while china has 1578. the united states is the world’s most advanced nation in both civilian and military space capabilities. countries worldwide rely on american space services in one form or another. the u.s. oversees the largest satellite communication system and the most extensive space defense systems. in 2024, the u.s. allocated $546 billion for space-related economic activities. satellite centers for both communication and military purposes are spread across the globe. in europe, eucom oversees 21 million square kilometers and 51 countries, while africom covers 53 countries on the african continent, both headquartered in germany in ramstein. additionally, the indo-pacom center, located in pearl harbor, manages space planning, data aggregation and military operations for 38 countries and 100 million square kilometers in the indo-pacific region. the national reconnaissance office (nro) of the united states manages 46 bases across 18 countries, directly connected to space-related intelligence9. in 2003, the u.s. developed the prompt global strike program, which enables the country to launch missile strikes within hours to any location on earth from space. the key functions of the u.s. space forces are as follows: space superiority protection from space threats, prevention of orbital warfare and electromagnetic warfare, and managing space-related conflicts. global mission operations maintaining functional supremacy on a global scale, including missile launch detection, satellite data aggregation (navigation and positioning), and conducting international operations. assured space access the deployment, maintenance, and support of satellites.10 6 berkowitz, m. and williams, c. (2024). russia’s space-based, nuclear-armed anti-satellite weapon: implications and response options. [online] available at: https://nssaspace.org/wp-content/uploads/2024/05/russian-nuclear-asat.pdf. 7 history and current status of the russian space program. (1957). available at: https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf 8 world population review (n.d.). military satellites by country 2023. [online] worldpopulationreview.com. available at: https://worldpopulationreview.com/country-rankings/military-satellite-by-country 9 austin, g., rajagopalan, r. and wright, t. (2022). military ambitions and competition in space: the role of alliances. [online] available at: https://www.iiss.org/globalassets/media-library---content--migration/files/researchpapers/2022/iiss-_cyber-competition-in-space-1.pdf [accessed 26 jan. 2025]. 10https://www.spaceforce.mil/portals/2/documents/sf101/ussf_101_glossy_final_e-version.pdf https://nssaspace.org/wp-content/uploads/2024/05/russian-nuclear-asat.pdf https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf https://worldpopulationreview.com/country-rankings/military-satellite-by-country https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.spaceforce.mil/portals/2/documents/sf101/ussf_101_glossy_final_e-version.pdf american journal of business management, economics and banking volume 32 january 2025 p a g e | 100 www.americanjournal.org the united states continues to develop numerous military space programs. one significant project is starlink, a military satellite program developed by spacex. in 2018, the u.s. air force signed a contract worth $28 million with spacex to assess the potential of program. starlink has since been used in ukraine on a trial basis. additionally, as part of this large project, the “blackjack” program was created by the u.s. advanced research projects agency (darpa), with a budget of $117 million.11 however, with the emergence of powerful nations competing with the u.s. in space, america has announced new plans to further develop its space potential. in 2020, the united states space force (ussf) was established, and currently, four defense support programs are operational in space. these include five space-based infrared systems (sbirs) to detect missile launches. by 2025, the opir (next-generation infrared warning satellites) will be launched and by 2032, the evolved strategic satellite is planned to be operational12. during his inauguration on january 20, 2025, president donald trump emphasized: “and we will pursue our manifest destiny into the stars, launching american astronauts to plant the stars and stripes on the planet mars”13. with projects involving figures like elon musk and his space ventures, the next four years are expected to see a significant expansion of u.s. space programs and projects. china is another powerful state for space dominance, and it has rapidly become a significant challenger to the united states, particularly in the realm of space capabilities. china has been labeled a “pacing challenge” to the u.s. due to its rapid progress in space technology and its increasingly assertive role in global space competition. in 2015, china made a pivotal decision to initiate a new framework for international space and cyber security competition. this strategy outlined in special goal to surpass russia by 2030 and then leave the united states behind by 2045, with the ultimate goal of becoming the number one space power in the world. as of 2023, china has already outpaced russia in several key areas. the country currently operates 157 military satellites and 623 civilian satellites, with 107 military satellites actively functioning. in comparison, russia has only 76 active military satellites.14 china is also the world’s second-largest player in terms of intelligence gathering through satellites, following the united states. one of the most advanced space assets is its “tangxin jishu shiyan” series of three geostationary satellites, which are capable of high-frequency early warning data transmission. this positions china as a major contender in both space defense and surveillance. china and russia have established strong cooperation in space technology, particularly in the development of space vehicles. china relies on russia for several critical technologies necessary for launching space vehicles, which demonstrates the interdependence of their space programs. moreover, china is keen on developing its own anti-satellite (asat) capabilities, and it has been working on a system called da-asat sc-19, which is capable of targeting rockets in low earth orbit (leo). in the 21st century, in addition to the united states, russia, and china, several other countries are also attempting to establish a foothold in space. while many of these countries collaborate through 11 системы управления, связи и безопасности №4. 2022 systems of control, communication and security. (n.d.). available at: https://sccs.intelgr.com/archive/2022-04/07-pehterev.pdf [accessed 11 jan. 2025]. 12 austin, g., rajagopalan, r. and wright, t. (2022). military ambitions and competition in space: the role of alliances. [online] available at: https://www.iiss.org/globalassets/media-library---content--migration/files/researchpapers/2022/iiss-_cyber-competition-in-space-1.pdf [accessed 26 jan. 2025]. 13 kekatos, m. (2025). read: donald trump’s inauguration speech transcript. [online] abc news. available at: https://abcnews.go.com/us/read-donald-trumps-inauguration-speech-transcript/story?id=117903564 14 world population review (n.d.). military satellites by country 2023. [online] worldpopulationreview.com. available at: https://worldpopulationreview.com/country-rankings/military-satellite-by-country https://sccs.intelgr.com/archive/2022-04/07-pehterev.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://abcnews.go.com/us/read-donald-trumps-inauguration-speech-transcript/story?id=117903564 https://worldpopulationreview.com/country-rankings/military-satellite-by-country american journal of business management, economics and banking volume 32 january 2025 p a g e | 101 www.americanjournal.org partnerships and alliances with space power nations, they are still making strides to enhance their space capabilities, both for scientific and military purposes. these countries include france, germany, the united kingdom, india, japan, israel, italy, australia, and saudi arabia. while most of these nations are involved in space activities related to data acquisition, research, and information security, some are also focused on increasing their technological independence and military presence in space. among these emerging space-faring nations, india stands out. india is striving for technological independence and aims to position itself as a global power in space. through its defense research and development organization (drdo), india has developed significant space technologies and is keen to assert itself as a self-reliant space power. initially, india was resistant to using space for military purposes, especially in the realm of anti-satellite (asat) operations. however, the successful progress of china in this area prompted india to recognize potential threats to its national security in space. in response, india established the defense space agency (dsa) in 2018, aimed with protecting indian assets in space. as of 2023, india operates 62 space vehicles, of which 9 are military satellites, marking it as a prominent player in the space domain. india stands out for its rare ability to collaborate with both russia and the united states in space activities, balancing its relationships with two major space powers. indian succeses in space can play a crucial role in elevating its status in international relations. similarly, japan has been watching china’s growing space capabilities with concern, particularly in the east asian region. the space ambitions of japan date back to 2008, when it began developing military space capabilities to ensure its security. by 2020, japan established a defense space division, further signaling its commitment to space as a strategic domain. however, despite its ambitions, japan’s progress in space has been somewhat limited. out of 88 space vehicles, only 2 are dedicated military satellites, suggesting that japan’s space program has faced hurdles in its pursuit of military space dominance. countries such as france, germany, the united kingdom, israel, and italy also maintain active space programs, often focused on civilian applications, data collection, and research. while many of these countries continue to rely on cooperation with established space powers, their increasing investments in space technology and infrastructure suggest that they are keen to carve out their own space-related roles in the coming decades. as these nations continue to grow their capabilities, they will likely contribute to the emerging multipolar space environment, where new geopolitical dynamics and alliances form. in conclusion, while the u.s. russia and china dominate the space race, these emerging space nations are actively working to expand their interests in space, balancing collaboration and competition in the ever-evolving space domain. in the ongoing space competition among the leading powers, the united states, china, and russia have been actively forming alliances and partnerships with other nations to strengthen their positions. while the u.s. has maintained a clear edge in building strategic coalitions, both russia and china have sought to form alliances to counterbalance american dominance in space. the united states has long led the way in forming space-related alliances. one of the most prominent frameworks is the five eyes agreement, which includes australia, canada, new zealand, the united kingdom, and the u.s. these countries are the most trusted american space allies, and they share vast amounts of intelligence, including satellite data, and coordinate efforts in space activities. in addition, the u.s. has bilateral space agreements with several countries. for example, u.s.-israel: israel operates 12 military and 29 american journal of business management, economics and banking volume 32 january 2025 p a g e | 102 www.americanjournal.org general-purpose satellites in collaboration with the u.s. u.s.-japan and u.s.-south korea: these countries have 21 total satellites, of which 2 military. u.s.-taiwan: taiwan operates 7 satellites, including 2 military ones, with direct links to u.s. space operations. furthermore, the u.s. has also formed the quad coalition with australia, india, japan, and itself to monitor and control space in the indo-pacific region.15 these nations share a significant number of satellites, and their cooperation enhances the u.s. dominance in space operations across the globe. the quad is a crucial part of the u.s efforts to secure its strategic space objectives in this vital region. through these extensive alliances and agreements, the u.s. conducts a comprehensive global space policy, leveraging these partnerships to strengthen its leadership in space exploration, defense, and security. on the other side, russia and china, despite their differences, have increasingly found common ground in their space ambitions. in 2017, the two countries signed a space cooperation agreement. this partnership, while not based purely on mutual trust, reflects geopolitical necessity and the desire to keep a balance of u.s. dominance in space. china and russia are united in their efforts to develop advanced space technologies, including anti-satellite (asat) capabilities and space station projects. this collaboration allows them to share space research, satellite technology and military space technologies. the partnership between china and russia represents a strategic alignment in space, especially considering their shared interests in space exploration and security. while china aims to overcome the top powerful space country in the world by 2045. also, russia continues to use its expertise in satellite systems, launch technologies, space defense to support the collaboration. the russia-ukraine war has significantly heightened the value of military satellites, as the critical role of space-based assets in modern warfare has become more evident.16 these satellites provide essential information that directly influences the course of conflicts, making their function even more vital for military operations. some of the key roles of military satellites in this context include: surveillance and reconnaissance data: gathering intelligence about enemy movements and activities. navigation and positioning: accurate tracking of forces and equipment. early missile warning systems: detecting potential threats before they reach their targets. electronic and signal intelligence (sigint) which is intercepting communications and electronic signals to understand enemy plans and actions. nuclear threat detection: monitoring signs of nuclear activity or tests. cybersecurity: protecting space-based systems from digital threats. these capabilities allow militaries to make informed decisions, significantly impacting the outcome of battles. if a side can receive and act on this information quickly, accurately, and reliably, it can tilt the balance in its favor. the precision of space-based intelligence has thus become a decisive factor in modern warfare, making military satellites an indispensable asset. despite facing western sanctions, russia has been making efforts to reduce its dependency on foreign technology and gain technological independence, not just on earth but also in space. russian military space program has been evolving to maintain its strength and capabilities in space, especially when it comes to gathering reconnaissance and defense. russian ability to operate independent military satellites has become crucial in the ongoing conflict. as tensions continue to rise, the country has been focused on securing its military space assets to gain an 15 austin, g., rajagopalan, r. and wright, t. (2022). military ambitions and competition in space: the role of alliances. [online] available at: https://www.iiss.org/globalassets/media-library---content--migration/files/researchpapers/2022/iiss-_cyber-competition-in-space-1.pdf 16 gurantz, r. (2024). monograph series. [online] available at: https://media.defense.gov/2024/aug/21/2003529805/-1/-1/0/20240822_gurantz_satellites_online_b%201.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://media.defense.gov/2024/aug/21/2003529805/-1/-1/0/20240822_gurantz_satellites_online_b%201.pdf american journal of business management, economics and banking volume 32 january 2025 p a g e | 103 www.americanjournal.org advantage in the global information and intelligence race, which has direct implications for its defense strategy. the increasing reliance on space for military purposes is contributing to growing mistrust and conflict among states. as nations focus more on controlling space-based assets for reconnaissance gathering, surveillance, and defensive measures, the risks of geopolitical tension and arms races in space rise. in particular poor nations may face themselves under greater pressure. these nations often lack the technological capabilities to keep pace with the space advancements of more powerful states. this disparity in space capabilities could lead to questions about their sovereign independence, as powerful states leverage their space assets to exert influence and control over them. while the likelihood of direct space warfare between major powers (like the u.s., russia, and china) is low, the competition for space-based intelligence is intensifying. perhaps the competition will be in the acquisition of information in space, reconnaissance, the effectiveness of early warning systems, and the effective maintain of information security. conclusion as we move further into the 21st century, the space race is likely to intensify, with countries striving to maintain their dominance and secure their place in an increasingly contested environment. the growing number and sophistication of satellites in orbit will play a central role in international relations, as powerful nations and emerging space players alike use space to assert their technological, military, and economic advantages. countries like the united states, russia, and china are actively working to assert or maintain their space positions. these nations are investing heavily in military and civilian space programs, with goals ranging from securing national security to gaining strategic advantages over rivals. for instance, the u.s. continues to strengthen its position by developing advanced satellites for both military and commercial use, while also ensuring strong international partnerships. in contrast, china has set its sights on surpassing the u.s. by 2045, signaling its ambition to dominate the space arena. russia, having inherited vast space infrastructure from the soviet union, is working to regain the lost ground and restore its influence in space, particularly in military and communication satellite capabilities. countries such as india and japan are motivated to participate in this competition to safeguard their national interests and defend against potential threats posed by the rise of powerful space actors like china. several other nations, including australia, france, and germany, are aligning themselves more closely with the united states to strengthen their position in the space race. this partnership offers technological, economic, and military benefits that allow them to enhance their space-related activities while ensuring security through collaboration. the competition for space dominance will undoubtedly shape global relations in the coming decades. as more countries join the space race, there will likely be greater tensions and increased competition for access to space-based resources, including satellite technology, communication systems, and early warning systems. the strategic value of space will continue to grow, and as nations seek to secure their interests, space will play an increasingly critical role in international security and politics. american journal of business management, economics and banking volume 32 january 2025 p a g e | 104 www.americanjournal.org references 1. thatcher, m. (2003). statecraft : strategies for a changing world. london: harper collins 2. (no date) the u.s. air force and the military space program. available at: https://media.defense.gov/2010/dec/02/2001329901/-1/-1/0/afd-101202-013.pdf (accessed: 11 january 2025). 3. nasa (2020). nasa: 60 years & counting beginnings. [online] nasa. available at: https://www.nasa.gov/specials/60counting/begin.html 4. history and current status of the russian space program. (1957). available at: https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf. 5. berkowitz, m. and williams, c. (2024). russia’s space-based, nuclear-armed anti-satellite weapon: implications and response options. [online] available at: https://nssaspace.org/wpcontent/uploads/2024/05/russian-nuclear-asat.pdf 6. world population review (n.d.). military satellites by country 2023. [online] worldpopulationreview.com. available at: https://worldpopulationreview.com/countryrankings/military-satellite-by-country. 7. gurantz, r. (2024). monograph series. [online] available at: https://media.defense.gov/2024/aug/21/2003529805/-1/1/0/20240822_gurantz_satellites_online_b%201.pdf. 8. системы управления, связи и безопасности №4. 2022 systems of control, communication and security. (n.d.). available at: https://sccs.intelgr.com/archive/2022-04/07-pehterev.pdf [accessed 11 jan. 2025]. 9. austin, g., rajagopalan, r. and wright, t. (2022). military ambitions and competition in space: the role of alliances. [online] available at: https://www.iiss.org/globalassets/media-library--content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf [accessed 26 jan. 2025]. 10. https://www.spaceforce.mil/portals/2/documents/sf101/ussf_101_glossy_final_e-version.pdf https://media.defense.gov/2010/dec/02/2001329901/-1/-1/0/afd-101202-013.pdf https://www.nasa.gov/specials/60counting/begin.html https://www.princeton.edu/~ota/disk1/1995/9546/954605.pdf https://nssaspace.org/wp-content/uploads/2024/05/russian-nuclear-asat.pdf https://nssaspace.org/wp-content/uploads/2024/05/russian-nuclear-asat.pdf https://worldpopulationreview.com/country-rankings/military-satellite-by-country https://worldpopulationreview.com/country-rankings/military-satellite-by-country https://media.defense.gov/2024/aug/21/2003529805/-1/-1/0/20240822_gurantz_satellites_online_b%201.pdf https://media.defense.gov/2024/aug/21/2003529805/-1/-1/0/20240822_gurantz_satellites_online_b%201.pdf https://sccs.intelgr.com/archive/2022-04/07-pehterev.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.iiss.org/globalassets/media-library---content--migration/files/research-papers/2022/iiss-_cyber-competition-in-space-1.pdf https://www.spaceforce.mil/portals/2/documents/sf101/ussf_101_glossy_final_e-version.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 88 www.americanjournal.org non-state higher educational institutions funding sources and formation yuldashev khushnidbek soyibjon ugli head of the educational and methodological department, andijan branch of turan university е-mail: hushnidbek1992@gmail.com orcid: 0009-0008-2497-3444 a b s t r a c t k e y w o r d s this article analyzes the sources of financial resources of non-state higher education institutions and their placement mechanisms. the development process of private higher education institutions in the world and in uzbekistan, sources of financing, and their role in the economy are considered. non-state higher education institutions in uzbekistan have determined ways of forming their funds mainly through student payment-contract revenues, private investors' contributions, international grants and loans, state benefits, and corporate cooperation. proposals have been made to improve the use of funds to ensure the financial stability of non-state educational institutions and increase their efficiency. non-state higher educational institutions, financial resources, investment, grants, placement of funds, material and technical base, education policy of uzbekistan. introduction in the world, non-state higher education institutions are an integral part of the modern education system. they are important because they create opportunities for academic independence, training of personnel who meet market requirements, development of research activities, and cooperation with the private sector. in countries such as the usa, great britain, germany, south korea, and japan, nonstate higher education institutions not only improve the quality of education but also make a significant contribution to the country's economy. for example, private universities such as harvard, stanford, and the massachusetts institute of technology in the usa occupy leading positions in the world education rankings and participate in many international studies. the number of non-state higher education institutions and their economic importance is also increasing in uzbekistan. until 2017, the number of non-state higher education institutions in the country was limited, but in recent years consistent reforms have been implemented in this field. in particular, the president's decision of july 11, 2019, "on measures for the further development of non-state higher education services," and the law "on education," adopted in 2021, created a legal basis for the development of non-state educational institutions. also, within the framework of the "new american journal of business management, economics and banking volume 33 february 2025 p a g e | 89 www.americanjournal.org development strategy of uzbekistan for 2022-2026" adopted in 2023, the development of non-state educational institutions was identified as one of the important directions. currently, more than 100 non-state higher education institutions are operating in uzbekistan, and their number is increasing every year. since 2017, the number of universities established through the private sector and international cooperation has increased dramatically, which has expanded the opportunity to diversify the education system in the country and train competitive specialists. the financial resources of non-state higher education institutions are mainly formed through student paymentcontract funds, funds of private entrepreneurs and investors, international grants and loans, preferential subsidies allocated by the state, and business cooperation carried out on the basis of partnership. this serves to ensure their financial stability. the current government of uzbekistan implements various mechanisms aimed at financial support and development of non-state higher education institutions. in particular, measures such as preferential loans, reduction of tax payments, and joint education programs in cooperation with foreign universities are being implemented. at the same time, the independence of private educational institutions and the development of their material and technical base are two of the important issues on the agenda. from this point of view, this article analyzes in detail the financing sources of non-state higher education institutions, their formation features, and mechanisms for ensuring financial stability. material and method the formation and effective use of funds and resources of non-state higher education institutions in the world and in our country are urgent issues. the article comparatively studies international experiences on these issues and analyzes the specific features of methods for effective attraction and placement of funds. the article uses methods such as comparison, scientific and theoretical comparison, comparative economic analysis, and a logical approach. discussion foreign and local scientists and specialists have different views on the financial resources of non-state higher education institutions and their formation, and they have studied various aspects of this field. let's take a closer look at some of them. in particular, philip altbach and jane knight emphasize the importance of private higher education institutions in the process of internationalization [1]. according to them, the financial resources of private universities mainly consist of student fees, contributions from private donors and research grants, which is an important factor in their stability and increasing the quality of education. daniel levy studies the development of private higher education institutions and the factors affecting their financial resources and shows that private universities are mainly financed by student fees and private sector funds [2]. simon margison, a foreign economist, analyzes the global trends of private higher education institutions and emphasizes the importance of using various sources for their financial stability, including student fees, research grants, and cooperation with the private sector [3]. joshua goodman and sarah turner examine the financial models of private higher education institutions and show that their revenues are mainly generated by student fees, private donations, and research activities [4]. in contrast, john douglas emphasizes the importance of student fees, private sector investment, and government grants in ensuring the financial sustainability of private higher education institutions [5]. american journal of business management, economics and banking volume 33 february 2025 p a g e | 90 www.americanjournal.org the local economist-scientist shamsiddin valiev, in his article entitled "the main features of the financing of higher education institutions during the massification of higher education in uzbekistan," emphasizes the need to reform the system of financing higher education institutions in the country and reduce dependence on the state budget [6]. in his opinion, expanding extra-budgetary resources is important to ensure the financial stability of higher education institutions in uzbekistan. student fees are the main financial source in this regard because the number of students is increasing every year, and this brings additional income to universities. in addition, receiving international and local grants and earning income from scientific research activities are also noted as important factors for ensuring financial stability. funds from scientific research serve not only the development of universities but also increase their independence. also, cooperation with the private sector, implementation of joint projects with companies, and the use of their financial assistance are also considered important sources of income for universities. the author emphasizes that higher education institutions can be financially strengthened by studying various ways of financing and implementing them in practice. according to his analysis, limiting direct financial assistance from the state and expanding the opportunities for universities to earn independent income play an important role in the effective development of the education system. also, f. ibrohimov and m. khurramov, in their study "assessing the quality of education in non-state higher education institutions: theory, foreign and national practice," deeply analyze the financial sources of non-state higher education institutions and the factors influencing their formation [7]. the authors emphasize that by improving the quality of education, the number of students can be increased, which in turn will help increase the income of universities. they say that the use of modern methods in the educational process, the introduction of programs in accordance with international standards, and the improvement of teacher qualifications will serve to increase the prestige of private universities. according to the authors, universities can expand the possibilities of attracting students by improving the quality of education, which directly affects financial stability. they point out that the introduction of preferential financing programs for students, increasing their educational opportunities and improving the financial assistance system should play an important role in the development strategy of non-state higher education institutions. the authors emphasize the need for universities to strengthen their material and technical base and pay great attention to scientific research by using innovative approaches in the educational process. international grants and strategic partnership programs are especially important in this regard. the order of the president of the republic of uzbekistan no. pf-5847 of october 8, 2019, establishes the task of attracting direct foreign investments to organize the activities of non-state higher educational institutions [8]. this is an important step aimed at expanding the financial resources of non-state higher education institutions. the document specifies measures to create a favorable environment for the private sector to enter the field of education, to provide various benefits from the state, and to implement joint projects with foreign universities. based on this decree, the number of non-state higher education institutions in the country increased, attention was paid to their financial independence, and the process of attracting private investments in the field of education was accelerated. also, the document envisages a number of measures, such as allocating plots of land for non-state universities, giving tax benefits, and encouraging their scientific research activities. the president's decree recommended the implementation of investment projects in order to improve the material and technical base of higher education institutions, adapt educational standards to international standards, and american journal of business management, economics and banking volume 33 february 2025 p a g e | 91 www.americanjournal.org diversify their sources of income. therefore, the financial capabilities of non-state higher education institutions in the country are expanding, and important reforms are being implemented to strengthen their material and scientific resources. p.m. in his monograph "quality of higher education in foreign countries: benchmarking, tuning, and diagnostics," lutfullaev deeply analyzes the financing systems of higher education institutions. he studies foreign experiences and mainly considers three directions in financing higher education [9]. the first direction is financing at the expense of state subsidies, and this model is often widely used in european countries. according to it, educational institutions will be financed by the state, and educational opportunities for students will be free of charge or at a low cost. the main advantage of this system is that it provides an opportunity for education to a wide range of people. but at the same time, due to dependence on budget funds, educational institutions do not have financial independence, and in some cases, they may face restrictions in introducing innovations. the second direction is private sector investments, and this model is widespread in countries such as the united states and great britain. in this system, private universities cooperate with business and industrial companies, and contract payments from students are also of great importance. the author considers this model to be one of the most effective forms of financing aimed at improving innovation and the quality of education, as the private sector encourages the development of the material and technical base of universities and scientific research. however, this model also causes some problems, for example, the increase in the cost of education and the lack of equal opportunities for all levels. the third direction is financing from student fees, in which case universities finance their activities mainly through the funds received from students. according to the author, this system can ensure the financial stability of universities, but due to the high price of education, the educational opportunities for the children of low-income families may be limited. therefore, he emphasizes that in order for this model to be effective, there should be preferential loans, grants, and scholarship programs for students. according to lutfullaev's general conclusion, to ensure the financial stability of educational institutions, it is important to diversify the sources of financing, that is, to find a balance between the state, private sector, and student payments. a. makhmudov studied the international operation of financing and management of higher education institutions and distinguished three main models [10]. the first model is a financing model oriented to the free market, in which case universities are self-supporting. universities cover their costs through student fees, private sector investments, grants, and income from research activities. this model is especially widespread in countries such as the usa, great britain, and canada. its advantage is that universities operate in accordance with economic requirements and can adapt to market conditions and introduce new educational programs. however, at the same time, education is very expensive for students, and opportunities for education are limited for low-income groups. the second model is the model of full financing by the state, which is often used in scandinavian countries, germany, and france. universities are mainly financed from the state budget, which makes education cheap and easily accessible to the general public. however, in this case, universities are financially dependent on the government, and there may be restrictions on private initiatives and innovations in the field of education. also, if the state budget is reduced, educational institutions may also face financial problems. the third model is a mixed financing model, in which universities are financed by the state, the private sector, and students. in this case, educational institutions will have the opportunity to cover their american journal of business management, economics and banking volume 33 february 2025 p a g e | 92 www.americanjournal.org expenses using various sources. in his opinion, this model is one of the most effective systems in world operations, and has shown good results in countries such as finland, india, south korea and japan. because in this system, universities will have the opportunity to operate independently, and at the same time, they will have the opportunity to use educational programs financed by the state. therefore, he emphasizes that each country should choose its own education financing model based on its economic and social conditions. from the analysis of these two scientists, it can be concluded that in order to ensure the financial stability of higher education institutions, each country should choose a financing model in accordance with its needs and the current economic situation. although self-supporting universities are focused on innovation, the price of education for students can be high. although state-funded universities are available to the general public, they may face limitations due to their complete dependence on the state budget. therefore, the use of a mixed model and diversification of financing sources are important in making the education system stable and effective. the studies of these scientists and specialists reflect different approaches to the financial resources of non-state higher education institutions and their formation. they emphasize that it is possible to ensure the stable development of non-state higher education institutions by increasing the quality of education, diversifying funding sources, and strengthening cooperation with the private sector. also, the financial resources of private universities are shaped differently in the world experience and differ according to the economic and social situation of each country. however, as a general approach, private sector funds, student fees, and government aid are seen as some of the main sources. results based on the analysis of the financial resources of non-state higher education institutions and their formation, the following results can be given. world experience shows that private higher education institutions are considered an integral part of the education system in developed countries, and they use various sources to ensure their financial stability. according to foreign scientists, private universities form their funds mainly through student fees, private sector investments, state subsidies, and revenues from scientific research. they emphasize the need to diversify funding sources to achieve financial stability. the views of uzbek and russian scientists also show that non-state higher education institutions need to effectively use extra-budgetary funds to achieve financial stability. decrees and decisions adopted by the president of uzbekistan created a number of privileges for non-state universities and expanded their independent financing opportunities. in russia, private universities are financed through student contracts and research activities, but insufficient state participation in this process is considered a problem. in the usa, germany, japan, china, and kazakhstan, private higher education institutions operate on the basis of different financial models. in the usa, they are financed according to the free market model, and the main sources are student fees, private capital, and grants. in germany and japan, a mixed financing model is used, where state subsidies and private sector funds are used together. in china, private universities carry out financing in cooperation with the state and use budget funds within the framework of strategic programs. in kazakhstan, private educational institutions are mainly financed by student fees and corporate capital. the lack of statistical data prevents a clear assessment of the impact of non-state higher education american journal of business management, economics and banking volume 33 february 2025 p a g e | 93 www.americanjournal.org institutions on the economy. based on the currently available data, it is known that the financial share of private higher education institutions in the usa is 1.2% 1.7% of the gdp, but there are no clear indicators for other countries in open sources. this shows the need to expand the database in assessing the role of non-state higher education institutions in the world economy. conclusions based on the analysis of the financial resources of non-state higher education institutions and their formation, the following conclusions and proposals are put forward. first, non-governmental higher education institutions are an integral part of the education system in global operations, and their financial stability consists of state aid, private sector investments, student fees, and income from scientific research. in uzbekistan, legal foundations have been created for the development of these institutions, but their financing sources have not yet been fully formed. therefore, it is necessary to further expand the participation of the private sector in the field of education. second, private higher education institutions can ensure financial stability by diversifying their funds. thirdly, by improving the quality of education, non-state higher education institutions can increase their demand and achieve financial stability. the experience of germany, finland, and south korea shows that universities can increase their prestige by introducing international education programs, attracting influential teachers, and developing scientific research. fourth, the transparency and analysis of statistical data should be improved to accurately assess the impact of non-state higher education institutions on the economy. in conclusion, in order to ensure the financial sustainability of non-state higher education institutions and increase their contribution to the country's economy, it is necessary to strengthen public-private sector cooperation, diversify financial sources, improve the quality of education, and make official statistical data more transparent. references 1. altbach, philip g., and jane knight. "the internationalization of higher education: motivations and realities." journal of studies in international education, 2007.https://journals.sagepub.com/doi/10.1177/1028315307303542 2. levy, daniel c. "private higher education: patterns and trends." international higher education, 2009. https://ejournals.bc.edu/index.php/ihe/article/view/8003 3. marginson, simon. "global trends in higher education financing: the role of private funding." asian pacific education review, 2013. https://link.springer.com/article/10.1007/s12564-013-9255-2 4. goodman, joshua, and sarah turner. "the design of financial aid in higher education: the role of grants and loans." journal of economic perspectives, 2014.https://www.aeaweb.org/articles?id=10.1257/jep.28.1.33 5. douglass, john a. "the rise of the for-profit sector in us higher education and the brazilian effect." european journal of education, 2012. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1465-3435.2012.01524.x 6. valiev, shamsiddin. "the main features of financing higher education institutions during the period of popularization of higher education in uzbekistan." economic development and analysis, 2023. https://e-itt.uz/index. php/eitt/article/view/507 https://journals.sagepub.com/doi/10.1177/1028315307303542 https://ejournals.bc.edu/index.php/ihe/article/view/8003 https://link.springer.com/article/10.1007/s12564-013-9255-2 https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1465-3435.2012.01524.x https://e-itt.uz/index american journal of business management, economics and banking volume 33 february 2025 p a g e | 94 www.americanjournal.org 7. f.ibrahimov and m. khurramov, "assessing the quality of education in private higher education institutions: theory, foreign and national practices." institute of educational development, 2024. https://devedu.uz/wp-content/uploads/2024/01/03.-nodavlat-oliy-ta%ca%bclimmuassasalarida-ta%ca%bclim-sifatini-baholash-nazariya-xorijiy-va-milliy-amaliyot.pdf 8. order no. pf-5847. "decree of the president of the republic of uzbekistan dated october 8, 2019 no. pf-5847." national database of legislation of the republic of uzbekistan, 2019. https://lex.uz/docs/4545884 9. lutfullaev, p.m. "higher education quality in foreign countries: benchmarking, tuning and diagnostics." namangan state university publishing house, 2024. https://namdu.uz/media/books/pdf/2024/07/20/namdu-arm-10834 10. mahmudov, a. "international operation of financing and management of higher education institutions." tdiu publishing house, 2022. https://iqtisodiyot.tsue.uz/sites/default/files/maqolalar/5_1_tashkhodjayev.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 81 www.americanjournal.org the role of electronic commerce sites and marketplaces in the development of small business in uzbekistan rizayeva nilufar oblakulovna, tashkent state university of economics, social sciences senior teacher of the department, tashkent rizayevanilufar15@gmail.com, +998999000565 a b s t r a c t k e y w o r d s in recent years, e-commerce and marketplaces have created new opportunities for small businesses. small businesses are an important component of the economy, and their development greatly affects the economic stability and social well-being of countries. this article analyzes the role of e-commerce sites and marketplaces in the development of small businesses in uzbekistan. small businesses, e-commerce sites, marketplaces, economic growth, modern technologies, society, innovation. introduction small businesses play an important role in the economy. they employ many people and support local communities. small businesses also actively participate in the implementation of new ideas and innovations. they often innovate the market by developing new products and services. these processes contribute to economic growth and increase competition. small businesses also have a social responsibility. they play an important role in ensuring social stability by strengthening ties with local communities, supporting the local economy, and participating in social projects. today, the use of ecommerce plays a very effective role in small business. electronic commerce (e-commerce, visual. "e-commerce') is the organization of trade practices through the internet. internet auction and e-bay online store are examples of electronic commerce. methodology electronic commerce is the organization of trade practices through internet technologies. e-commerce is powered by the internet. customers access the online store to purchase products through their devices. they allow buyers to compare goods and services from different sellers. as a result of the rise of our country to a new economic stage, large-scale works were carried out in all areas. the first law on "electronic commerce" in uzbekistan was adopted in 2004. as a result of the development of information technologies, electronic commerce systems have risen to a new level. in the decree no. 37 of the president of the republic of uzbekistan sh.m. mirziyoyev dated may 14, 2018 "on measures for the further development of electronic commerce", a number of plans were defined as the goal of american journal of business management, economics and banking volume 31 december 2024 p a g e | 82 www.americanjournal.org the development of electronic commerce. development of new ideas and products, introduction of technologies and monitoring of market trends help to increase the competitiveness of small businesses. an innovative approach allows small businesses to adapt to changing market conditions. research outcome in uzbekistan, the field of e-commerce is rapidly developing, products and services are provided to consumers through many platforms and sites. below are the most popular e-commerce sites in uzbekistan: 1. marketplace (online markets): olx.uz is the most popular platform for local ads. it offers the opportunity to buy and sell everything from developments to real estate and vehicles, with its advantages: an easy-to-use interface, various categories and the possibility of posting ads for free. zood mall is a shopping area in uzbekistan that offers international and local products. its advantages: various forms of payment and wide choice. zoodmall is an international online shopping platform that operates in many countries, including uzbekistan. through the zoodmall mobile application, users can shop for a variety of products, including clothing, accessories, electronics, home appliances, and more at low prices. app features include new arrivals and great discounts. zoodmall also offers the option to pay in installments with no upfront fees. book.uz is a specialized site for selling books. its advantages: a wide range of electronic and printed publications. 2. trading sites connected to electronic payment platforms: apelsin store. an online store connected to the apelsin mobile application. 3. specialized trade sites: technomart.uz is a platform specializing in the sale of household appliances and electronics. goodzone.uz is the sale of electronics and household appliances. anor.uz is a platform for buying international products. 4. trade and logistics integrated sites: uzum market is one of the largest e-commerce platforms in uzbekistan, offering a convenient marketplace service for buying local and international goods. in 2023, the app was downloaded more than 13.5 million times and became one of the leading online shopping platforms in the country. uzum market has established distribution points for users in 72 settlements, and it is planned to increase this number in the future. the fulfillment by seller (fbs) model is introduced on the platform, and sellers have the opportunity to independently manage and store their products, and the marketplace provides online storefront and logistics services. in addition, attention will be paid to expanding the assortment of the marketplace and making the purchase process more convenient. express24 is a service for delivery of food, ready meals and various products from stores in uzbekistan. the service delivers food products, including markets, quality imported products, household chemicals. market products, for example, meat and dairy products from the oloy market, and products from the chorsu market, are provided with ease of delivery. following the development of the company, it is planned to merge express24 and yandex eats services into a single platform, which is american journal of business management, economics and banking volume 31 december 2024 p a g e | 83 www.americanjournal.org expected to increase the number of orders and optimize delivery processes. this partnership expands the choice for users and ensures faster delivery of orders. 5. international e-commerce platforms: wildberries.uz. this is the uzbekistan version of the international trade platform. advantages: wide assortment and fast delivery. aliexpress is one of china's largest online shopping platforms, founded in 2010 by alibaba group. (in uzbekistan) aliexpress offers its customers the opportunity to buy clothes, electronics, home appliances, accessories, and many other goods. the platform works worldwide and serves global customers. each platform is tailored to consumers with its own products and services. discussion in uzbekistan, electronic commerce is at the stage of its development. today, it is about one percent of the country's gdp. in order to further develop electronic commerce, it is necessary to determine the factors affecting it, to study the appearance of connections between them, and to make forecasts for future periods on this basis. in the coming years, the growth of the e-commerce market in uzbekistan can be ensured on the basis of the following factors: increase in population income levels; internet audience growth; level of attraction of internet users to electronic commerce; increase in product categories; growth of purchases within product categories. the above factors indicate the prospects for the development of electronic commerce in uzbekistan. the share of e-commerce in the total volume of retail trade in uzbekistan is 1.4%, this figure is 4% in russia, 8.3% in the usa and 9.9% in most countries of western europe. conclusion the role of e-commerce and markets is now incomparable for the further development of small business in the country. in the uzbekistan, small businesses have the opportunity to present their products to a wide audience through e-commerce, which helps them grow. also, the development of electronic commerce has a positive effect on the structure of the labor market of uzbekistan. the industrialization of high information technologies will create thousands of new jobs. in general, it should be emphasized that the opportunities for the development of electronic commerce in uzbekistan are growing year by year. its development creates opportunities for our national producers to open new markets and find new customers. acknowledgment i express my gratitude to all the researchers and economists conducting research in the field of ecommerce use in small business in uzbekistan, as well as to the founders of the online store, who used their data and scientific work to write this research paper. american journal of business management, economics and banking volume 31 december 2024 p a g e | 84 www.americanjournal.org references 1. указ президента республики узбекистан от 05.10.2020 год № уп-6079 «об утверждении стратегии цифровой узбекистан-2030 и мерах по её эффективной реализации» 2. suyunov dilmurod xolmuradovich, kenjabayev aman turgunovich, ro’ziyev abdumalik ortig’aliyevich. elektron tijorat. darslik. -t.: 2023. –298 b. 3. sodikov a. o'zbekistonda elektron tijorat rivojlanish bosqichlari va tahlili // "экономика и социум" №12(115)-1 2023. 719-725 betlar. 4. usmonova adiba azim qizi. o’zbekistonda elektron tijoratning sohalarda rivojlanishi // uzbek scholar journal volume21, october, 2023 www.uzbekscholar.com 1-7 pages. 5. абдухалилова л.т. интернет маркетинг. – т.: иқтисодиёт, 2019. 265 б. 6. müller, t. (2022). the role of digital platforms in supporting small business development in germany. journal of small business management, 60(3), 350-367. 7. davis, p. (2022). navigating online sales: small business success stories in e-commerce. journal of retailing, 98(2), 210-225. 8. бабкин а.в. цифровые платформы в экономике: понятие, сущность, классификация.// вестник академии знаний №54 (1) 2023 год 9. щелудько е.б, романец и.и развитие платформенных рынков в цифровой экономике. // инновационная экономика: перспективы развития и совершенствования.№5 (55)2021 год 10. махмудова г, ашуров з, раззакова б развитие цифровой экосистемы и формирование цифровых платформ в узбекистане //сетевое издание π-economy.№2 (15) 2022 год http://www.uzbekscholar.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 38 www.americanjournal.org the health of women of fertile age yuldasheva f. u. eshonkhodjaeva m. o. khojieva k. l. aliyev d. o. ashurov s. r. tashkent medical academy a b s t r a c t k e y w o r d s the health of women of fertile age is a key aspect of their overall wellbeing and ability to care for future generations. it is important to support women's health during this period of life as it impacts their reproductive health and the health and well-being of their unborn children. reproductivee age, fertility, demography, maternal health, women's health. introduction in uzbekistan, more than 40% of the population are children under 14 years of age, and a quarter of the population are women of fertile age. in this regard, the state and civil society of the country, in order to achieve the millennium development goals (mdgs), pay so much attention to reproductive health issues and many other issues of maternal and child health. the attention paid to women and the younger generation in our country is a priority direction of large-scale reforms carried out in all spheres of society. the measures taken to provide medical, social and legal protection to women, improve their status in the family and society, protect motherhood and childhood, preserve reproductive health, improve medical care, help ensure the protection of human interests. the relevance of this topic lies in the fact that this particular criterion is a multifaceted indicator, as in healthcare, as well as demographic significance. the health of newborns, children and in the future of all people is largely related to the health of the mother and, in particular, of all women of fertile age. purpose of the study: to study the health status of women of fertile age on the scale of one district of the city of tashkent. research objectives. • developing an information collection plan. • processing and analysis of received data. • working with data. american journal of business management, economics and banking volume 24 may 2024 p a g e | 39 www.americanjournal.org materials and methods. study area for the study: yunusabad population: approximately 356.7 thousand people • men 171,256 (48%) • women 185,444 (52%) • women who have not reached fertile age 40,797 (22%) • fertile age 111,268 (60%) • post. fertile age 33,379 (18%) +number of patients in the clinic + number of sick children from a sick mother + health factors influencing healthy childbirth + healthcare reform to preserve maternal and child health (3rd stage) the social affiliation of the analyzed contingent was presented as follows: only 13 (8.9%) were employees with higher education; the vast majority of patients were housewives 71.7%, among whom 12 had primary education, 18 had incomplete secondary education. , 62 had secondary население юнусабадского района мужчины женщины возрастные категории женщин женщины, не достигшие фертильного возраста фертильного возраста пост. фертильного возраста american journal of business management, economics and banking volume 24 may 2024 p a g e | 40 www.americanjournal.org education and 18 had secondary specialized education. pupils and female students made up 8.9%, workers 10.3%. from the reproductive history of the surveyed patients, it turned out that the frequency of spontaneous miscarriage among those surveyed was 11.0%, with from one to 4 miscarriages, premature births 12.6%, 13.1% of patients used intrauterine contraception. the data show that among the women surveyed there is a large proportion of those who have no personal experience of planned or forced abortions (59% of multiple responses), 13% of women noted that they had one or more cases of miscarriage, 33.1% had an abortion. let us turn to the analysis of the motives for abortion that women named in cases where abortion was deliberately chosen and was not a medical prescription. the leading motive is called “material problems” 30.4% of the number of multiple answers, in second place is the motive “bad relationship with the child’s father” 21% conclusions: we clarified that the majority of children’s diseases are very closely related to the health of the mother, since all somatic diseases and physical deviations from the norm, as well as any even small imbalance in the organs and systems of a woman of fertile age are likely to directly affect this woman’s child. references 1. юлдашева ф. socio-hygienic study of the health of children born with high weight. // international scientific journal isj &applied scince . 2018.. №11. с.179-180. 2. юлдашева ф., имамов а. роль спорта в формировании здорового образа жизни у молодежи.// европейский международный журнал междисциплинарных исследований и управленческих исследований.2022.. №2(11). с.85-89. 3. юлдашева ф., тошматова г. оказание медико-социальной помощи населению // наука и просвещение. 2023. №56. с. 164-174. 4. юлдашева ф.у. & каримбаев, ш.д. совершенствование объективности оценки качества знаний студентов. 2014. 0 10 20 30 40 50 60 70 высшее начальное неполнее среднее среднее средне-специальное образованность женщин american journal of business management, economics and banking volume 24 may 2024 p a g e | 41 www.americanjournal.org 5. sherkuzieva, g. f., salomova, f. i. yuldasheva, f. u. oziq ovqat qo’shimchalari va aholi salomatligi.2023. «o‘zbekistonda vinochilik va sanoat uzumchiligi sohasining muammolari va ularning innovatsion yechimlari» respublika ilmiy-texnikaviy konferensiya ilmiy ishlar to ‘plami. 2023;101-102 6. шеркузиева г.ф., саломова, ф.и., юлдашева ф.у. результаты санитарно-химических исследований воды.//международный научно-образовательный электронный журнал «образование и наука в xxi веке». 2023;35(2). 7. юлдашева ф.у. факторы риска развития злокачественных новообразований у детей. //сборник научных трудов республиканской научно-практической конференции “профилактическая медицина: гигиеническая наука и практика”ташкент.2015; 87-89. 8. юлдашева ф.у., impact of cov.id-19 on education system in the world and in uzbekistan. //образование: прошлое, настоящее и будущее. 2020; 94-95). 9. юлдашева ф.у. organization of work universities during the covid 19 pandemic. //international conference, san francisco, california, usa. 2020; 10. юлдашева, ф. у., & имамова, а. о. роль спорта в формировании здорового образа жизни у молодежи. //европейский международный журнал междисциплинарных исследований и управленческих исследований.2022; 2(11): 85-89. 11. смыслова и.в., рыбаков с.с. фертильное здоровье женщин: современные проблемы и решения. // международный научно-исследовательский журнал. 2014. №2 (21) часть 3 с.45-67 12. нацун л. здоровье женщин фертильного возраста.// социальные, культурные исследования и безопасность. 2020. №3 с.167-181. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 12 www.americanjournal.org modern methods of asset management of commercial banks rabimkulov sherzod murtozaevich doctor of philosophy in economics (phd), tashkent state economical university a b s t r a c t k e y w o r d s annotation: this article analyzes modern methods of asset management of commercial banks and their practical significance. the essence of modern approaches such as asset-liability management (alm), portfolio diversification, technological innovations, liquidity management, stress tests, and esg-based management and their role in the activities of banks are deeply covered. also, detailed information is provided on the application of each method and their advantages. the results of the study show that they expand the possibilities for banks to increase financial stability, reduce risks, and enhance competitiveness. commercial banks, asset management, alm, diversification, technological innovation, liquidity, stress testing, esg criteria, financial stability, risk management. introduction asset management of commercial banks is one of the most important aspects of the modern financial system. in the context of globalization processes, the rapid development of digital technologies and the complexity of financial markets, banks are forced to use new approaches and methods to effectively manage their assets. bank assets are the bank's income-generating resources, and their proper management is important not only for the stable operation of the bank, but also for the strength of the entire financial system. in modern conditions, traditional asset management methods are losing their effectiveness and new, innovative solutions are required. the banking system of uzbekistan is also not left behind global trends. the economic reforms being implemented in our country, in particular, fundamental changes in the banking and financial sector, require commercial banks to introduce an asset management system that meets international standards. in the context of the liberalization of the national exchange rate, changes in the inflation rate, the emergence of new financial instruments and an intensified competitive environment, banks are forced to look for ways to manage their assets more effectively. new regulatory requirements of the central bank of the republic of uzbekistan, the gradual introduction of basel iii standards also require commercial banks to use modern methods in asset management. the process of digital transformation is leading to a paradigm shift in bank asset management. while traditional methods relied mainly on historical data and expert assessments, modern approaches are american journal of business management, economics and banking volume 37 june2025 p a g e | 13 www.americanjournal.org based on real-time data analysis, forecasting models and automated decision-making systems. machine learning algorithms are being used to assess credit risk, optimize portfolios and predict market trends. cloud technologies are expanding the capabilities of data storage and processing. these changes not only increase operational efficiency, but also allow the creation of new business models. the evolution of risk management is central to the development of modern methods of managing bank assets. in addition to traditional credit, market and operational risks, modern banks are faced with new threats such as cybersecurity risks, risks associated with climate change, reputational risks. advanced risk assessment methods such as stress tests, scenario analysis, monte carlo simulations are widely used. integrated risk management systems allow for a comprehensive assessment and management of all types of risks. these approaches allow banks to increase their preparedness for unexpected situations and improve the quality of assets. the changing regulatory environment requires new approaches to managing bank assets. the increased requirements for capital adequacy, liquidity and leverage under the basel iii agreement are fundamentally changing the activities of banks. macroprudential policy tools, such as countercyclical capital buffers and additional requirements for systemically important banks, require a strategic approach to asset management. esg (environmental, social, governance) criteria are also becoming an important factor in asset valuation and management. asset quality reviews (aqr) and stress tests conducted by central banks require banks to constantly monitor and optimize their asset portfolios. the emergence of financial technologies (fintech) and non-traditional competitors is putting serious pressure on the traditional banking model. the entry of peer-to-peer lending platforms, digital currencies, neo-banks and bigtech companies into the financial services market is forcing commercial banks to reconsider their business models. in this context, improving the efficiency of asset management is an important factor in maintaining competitiveness. the concept of open banking, the api economy and the ecosystem approach are creating new opportunities in bank asset management. partnership models and platform strategies are expanding the concept of traditional assets. liquidity management is becoming an increasingly complex task in modern conditions. real-time payment systems, instant money transfers, and the growth of transactions in digital channels lead to rapid changes in liquidity positions. intraday liquidity management, dynamic hedging strategies, and optimization of liquidity buffers have become an integral part of modern alm (asset-liability management) systems. artificial intelligence and forecasting models are being used to predict liquidity flows and maintain optimal liquidity levels. lcr (liquidity coverage ratio) and nsfr (net stable funding ratio) are indicators literature analysis in the process of analyzing the literature on the topic, scientific research was conducted by several leading economists and experts from around the world on modern methods of managing assets of commercial banks. in particular, bektemirov a., omonov a.a., khaydarov z.sh., niyozov z.d. in their studies “covered the theoretical, methodological and legal and regulatory foundations of asset and liability management in commercial banks. modern management methods, strategic directions and methods of their implementation in practice”1 were described in detail. 1 bektemirov a., omonov a.a., khaydarov z.sh., niyozov z.d. textbook on the subject of “management of assets and liabilities of commercial banks”. – samarkand: samisi, 2020. 240 pages american journal of business management, economics and banking volume 37 june2025 p a g e | 14 www.americanjournal.org solihjonov akbarmirzo, & a.a.qosimov in their research believe that “asset and liability management is not only an important component of the bank's internal policy, but also the main tool for adapting to the external financial environment. the main problem in asset-liability management is the imbalance in terms of time and volume. in this case, the fact that liabilities are short-term and assets are long-term creates liquidity problems”2. tursunov, f. m., & narzulloyev, j. n. believe that “properly calculating the value of bank assets and planning the income from them can lead to the efficiency of bank operations, while incorrect calculation of the value of assets and their placement can create difficulties in the financial condition of the bank”3. khojibekova z.sh. believes in her research that “effective asset management allows banks to receive higher returns with a lower level of risk, and as a result contributes to their overall financial health and stability. as is known, in ensuring the financial stability of commercial banks, an important consideration is to ensure a reasonable level of the ratio between highly liquid assets and high-yielding assets”4. aswath damodaran in his research believes that “the balance between risk and value creation is crucial in managing bank assets. modern banks should create value by assessing and managing risk, not avoiding it. strategic risk-taking is not only an opportunity for banks, but also a prerequisite for remaining competitive”5. viral acharya in his research believes that “the covid-19 pandemic has shown that it is vital to consider stress scenarios and tail risks in managing bank assets. banks should prepare for extreme events, not for ‘normal’ conditions. systemic risk is not an individual bank problem, but a matter of the stability of the entire financial system”6. markus brunnermeier believes in his research that “the emergence of digital currencies and defi (decentralized finance) is fundamentally changing the paradigm of traditional bank asset management. banks now need to be prepared to work not only with traditional assets, but also with tokenized assets and smart contracts. this creates ‘the resilience imperative’ the resilience imperative”7. hyun song shin believes in his research that “global financial cycles and dollar dominance require new approaches to bank asset management. an integrated approach is needed to manage cross-border capital flows and exchange rate risks. in the context of geopolitical fragmentation, banks need to be 2 solihjonov akbarmirzo, & a.a.qosimov. (2025). improving methods of managing assets and liabilities of commercial banks. modern education and development, 25(5), 319–323. retrieved from https://inlibrary.uz/index.php/mead/article/view/87028 3 tursunov, f. m., & narzulloyev , j. n. o‘o‘li. (2023). structural structure of assets of commercial banks and the need for their management. scholar, 1(35), 102–108. retrieved from https://researchedu.org/index.php/openscholar/article/view/5825 4 khojibekova z.sh. “assets of commercial banks "improving the efficiency of" educational innovation and integration issue 22_6th edition_june -2024 5 damodaran, a. (2022). "strategic risk taking in banking: a value creation perspective." journal of applied corporate finance, 34(2), 22-35. https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/strategicrisk2022.pdf 6 acharya, v. v., & steffen, s. (2023). "the risk of being a fallen angel and the corporate dash for cash in the midst of covid." the review of financial studies, 36(3), 717-763. https://academic.oup.com/rfs/article/36/3/717/6889456 7 brunnermeier, m. k. (2024). "the digitalization of money and banking: from traditional assets to digital finance." annual review of financial economics, 16, 89-114. https://scholar.princeton.edu/markus/publications/digitalizationmoney-banking-2024 https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/strategicrisk2022.pdf https://academic.oup.com/rfs/article/36/3/717/6889456 https://scholar.princeton.edu/markus/publications/digitalization-money-banking-2024 https://scholar.princeton.edu/markus/publications/digitalization-money-banking-2024 american journal of business management, economics and banking volume 37 june2025 p a g e | 15 www.americanjournal.org prepared for multiple equilibria”8. robert engle believes in his research that “climate risk has created a new dimension in bank asset management. traditional risk models cannot properly assess climate-related shocks. banks need to manage climate beta by monitoring climate news flow in real-time and using dynamic hedging strategies” 9. research methodology in covering this topic, the methods of abstract-logical thinking, generalization, comparison, analysis and synthesis, and systematic analysis were used. financial and economic indicators of the industry were analyzed and compared, and conclusions and proposals were developed based on the results obtained from the study. analysis and discussion of results the importance of modern asset management methods in the activities of commercial banks is manifested, first of all, in ensuring financial stability. in a market economy, banks are exposed to various financial risks, therefore, proper and effective asset management serves to increase their longterm competitiveness. with the help of modern management methods, banks quickly adapt to market changes and keep risks to a minimum. secondly, asset management based on digital technologies and artificial intelligence improves the quality of customer service. advanced technologies such as credit scoring, data analytics, and scenario modeling provide banks with speed and accuracy in decision-making. this makes banks' loan portfolios healthier, reduces losses, and helps strengthen relationships with customers. thirdly, systematic approaches such as asset and liability management (alm) allow for effective management of liquidity and interest rate risks. through these methods, banks maintain the ability to meet their obligations on time and ensure a constant flow of funds in the lending process. as a result, financial stability increases and the confidence of investors and depositors is strengthened. fourth, the possibility of reducing risks increases through diversification strategies. based on modern portfolio theory, banks distribute investments across different geographical regions, industries and financial instruments. this allows banks to strengthen their financial position even in the event of economic downturns or sectoral crises. fifth, banks are focusing on asset management based on esg (environmental, social and corporate governance) criteria to achieve sustainable development. this not only increases social responsibility, but also improves the image of the bank in international financial markets. as a result, banks achieve long-term and reliable financial results, adhering to the principles of environmental and social sustainability. 8 shin, h. s. (2023). "global banking amid geopolitical tensions: managing cross-border assets in a fragmented world." bis working papers, no. 1089. https://www.bis.org/publ/work1089.pdf 9 engle, r., giglio, s., kelly, b., lee, h., & stroebel, j. (2023). "hedging climate change news." the review of financial studies, 36(3), 1306-1351. https://academic.oup.com/rfs/article/36/3/1306/6324617 https://www.bis.org/publ/work1089.pdf https://academic.oup.com/rfs/article/36/3/1306/6324617 american journal of business management, economics and banking volume 37 june2025 p a g e | 16 www.americanjournal.org table 1 modern methods of asset management of commercial banks № modern approach description importance 1 asset and liability management (alm) ensuring the compatibility of asset and liability terms and interest rates. increasing financial stability and reducing interest rate risk. 2 portfolio diversification allocation of assets across sectors, regions and financial instruments. reducing risks and stabilizing income. 3 technological innovations management through big data, artificial intelligence and blockchain technologies. making quick and accurate decisions, providing quality customer service. 4 liquidity management formation of a portfolio of assets that can be converted into cash in the short term. maintaining solvency and reducing liquidity risks. 5 stress testing and scenario analysis scenario analysis to assess resilience to macroeconomic shocks. increasing the stability of the bank and the ability to take rapid measures in crisis situations. 6 esg-based management asset management in accordance with environmental, social and governance principles. ensuring sustainable development and improving the image of the bank. commercial banks widely use asset and liability management (alm) to ensure a balance between their assets and liabilities. in this method, banks adjust the maturity, interest rates, and liquidity characteristics of assets and liabilities. interest rate and liquidity risks are controlled using modern tools such as gap analysis and duration analysis. the alm method allows the bank to adapt to changing economic conditions and maintain stability even in stressful situations. the main advantage is that the bank constantly monitors its financial condition, reduces risks, and optimizes profit margins. diversification is one of the most important risk management tools of commercial banks. banks distribute their loan portfolios, investment assets, and other financial instruments across different sectors, geographic regions, and financial instruments. this method ensures that factors such as macroeconomic shocks, industry crises, or political instability have a lesser impact on the bank's operations. diversification reduces risk and increases sources of income, stabilizes the bank's cash flows, and stimulates long-term growth. in recent years, commercial banks have begun to widely use technological innovations in asset management, in particular artificial intelligence, big data, and blockchain technologies. the use of ai models for credit scoring, risk prediction, and investment portfolio optimization allows banks to make quick and informed decisions. blockchain technology, in turn, increases the transparency of asset movements and transactions. these innovations not only reduce operating costs, but also allow for highly personalized services to customers, which increases the bank's competitiveness. one of the main problems that banks face every day is the proper management of liquidity needs. based on indicators such as lcr (liquidity coverage ratio) and nsfr (net stable funding ratio), banks maintain sufficient liquid assets to cover shortand long-term financial obligations. by forming liquidity portfolios, banks are able to respond to unexpected customer demands and maintain solvency. this approach allows the bank to withstand changes in the financial system and increase customer confidence. american journal of business management, economics and banking volume 37 june2025 p a g e | 17 www.americanjournal.org stress testing and scenario analysis allow banks to assess their assets and liabilities under various uncertain economic conditions. with the help of these analyses, banks prepare for situations such as changes in interest rates, sharp fluctuations in exchange rates, and financial crises. based on the results of stress tests, the bank can strengthen its risk management strategy and increase capital reserves. this method allows banks to identify risks in advance and take prompt action in a crisis. modern banks are increasingly paying attention to pursuing an investment policy based on environmental, social, and governance (esg) principles. by investing in "green" bonds and social projects, banks not only receive financial benefits, but also achieve positive social and ecological results. esg criteria strengthen the bank's social responsibility, increase its brand value, and attract the attention of foreign investors. as a result, the bank will not only become economically stable, but also strengthen its reputation in the eyes of society. modern methods of asset management for commercial banks play an important role in financial stability, risk reduction and competitiveness. through alm, diversification and technological innovations, banks adapt to changing market conditions and expand their sources of income. liquidity management and stress tests protect banks from unexpected financial shocks. management based on esg criteria not only increases the bank's social responsibility, but also its credibility in the international arena. thus, the use of modern asset management methods is becoming a prerequisite for the long-term success and development of banks. references 1. bektemirov a., omonov a.a., khaydarov z.sh., niyozov z.d. textbook on the subject of “management of assets and liabilities of commercial banks”. – samarkand: samisi, 2020. 240 pages 2. solihjonov akbarmirzo, & a.a.qosimov. (2025). improving methods of managing assets and liabilities of commercial banks. modern education and development, 25(5), 319–323. retrieved from https://inlibrary.uz/index.php/mead/article/view/87028 3. tursunov, f. m., & narzulloyev , j. n. o‘o‘li. (2023). structural structure of assets of commercial banks and the need for their management. scholar, 1(35), 102–108. retrieved from https://researchedu.org/index.php/openscholar/article/view/5825 4. khojibekova z.sh. “assets of commercial banks "improving the efficiency of" educational innovation and integration issue 22_6th edition_june -2024 5. damodaran, a. (2022). "strategic risk taking in banking: a value creation perspective." journal of applied corporate finance, 34(2), 22-35. https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/strategicrisk2022.pdf 6. acharya, v. v., & steffen, s. (2023). "the risk of being a fallen angel and the corporate dash for cash in the midst of covid." the review of financial studies, 36(3), 717-763. https://academic.oup.com/rfs/article/36/3/717/6889456 7. brunnermeier, m. k. (2024). "the digitalization of money and banking: from traditional assets to digital finance." annual review of financial economics, 16, 89-114. https://scholar.princeton.edu/markus/publications/digitalization-money-banking-2024 8. shin, h. s. (2023). "global banking amid geopolitical tensions: managing cross-border assets in a fragmented world." bis working papers, no. 1089. https://www.bis.org/publ/work1089.pdf 9. engle, r., giglio, s., kelly, b., lee, h., & stroebel, j. (2023). "hedging climate change news." the review of financial studies, 36(3), 1306-1351. https://academic.oup.com/rfs/article/36/3/1306/6324617. https://pages.stern.nyu.edu/~adamodar/pdfiles/papers/strategicrisk2022.pdf https://academic.oup.com/rfs/article/36/3/717/6889456 https://scholar.princeton.edu/markus/publications/digitalization-money-banking-2024 https://www.bis.org/publ/work1089.pdf https://academic.oup.com/rfs/article/36/3/1306/6324617 american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 96 www.americanjournal.org methodological basis for evaluating the investment potential of food industry enterprises ismailov akmal maksudovich professor of tashkent dalat university of economics, (dsc) a b s t r a c t k e y w o r d s the article examines one of the main economic categories investment potential. in particular, the essence of the concept of food industry enterprises is revealed and the need for a comprehensive review from the point of view of food industry enterprises carrying out investment activities is shown. the investment potential of food industry enterprises is defined and the factors forming it are formed. food industry, investment potential, investment resources, financial potential, production potential, labor potential, innovation potential, marketing potential, potential potential, management potential. introduction in modern conditions, the food industry plays an important role in meeting the basic needs of the population and at the same time providing necessary products. food industry enterprises are a set of enterprises engaged in the production of food products in the form of finished products and semifinished products, including various beverages and tobacco products. it is defined as the food manufacturing industry, which also includes the production of food products, beverages and tobacco [1]. the investment potential of the enterprise is determined by the amount of investments that can be attracted through external and internal financing sources. it is also the ability of the enterprise to implement a set of investment measures to create additional financial flows by attracting existing resources to increase the value of the investment object. they are also used to create investment portfolios, implement investment projects or individual investment operations. investment potential is formed by the enterprise by gradually accumulating investment opportunities that cannot be implemented immediately. the main factor affecting the formation of investment potential is the profitability of investments that the enterprise is able to make. that is, if the company has profitable investment opportunities, investors will be happy to invest in the company in order to increase their money. the assessment of investment potential includes the financial, economic and quality characteristics of the enterprise, including: economic potential, efficiency of asset use and material, labor, financial and intellectual resources involved in business; the volume of already attracted investments and their real income in the form of growth, the number of employees, tax revenues; american journal of business management, economics and banking volume 25 june 2024 p a g e | 97 www.americanjournal.org level of financial independence and liquidity of the enterprise; level of competitiveness of the enterprise; the position of the enterprise in the bcg matrix; the property value of the enterprise and the level of market share; land, natural and intellectual rent, reputation of the enterprise, level of financial leverage; level of cash flow; indicators of entrepreneurship and investment activity in the market. the characteristics of the second group include: organizational and legal status; rating level of the enterprise in the investment market; availability of anti-crisis programs, marketing and financial market strategies, assessment of product life cycle level; swot analysis of the company's management, product or service; availability of specialists with experience in financial and investment management, risk managers, working with foreign partners in the management system. research methodology summing up from the definitions given above, we need to calculate a number of economic indicators of these enterprises in the evaluation of the activities of food industry enterprises and, on this basis, to select the most important indicators that make up the investment potential of enterprises, create an integral indicator of the investment potential of the enterprise. can be done. the methodology for determining the investment potential of food industry enterprises proposed by us is required to be evaluated and determined by dividing it into the following groups of potential indicators (fig. 1). as indicators of the investment potential of food industry enterprises, there are such types as indicators of financial potential, indicators of production potential, indicators of labor potential, indicators of innovative potential, indicators of marketing potential and indicators of potential investment potential. includes. figure 1. indicators of investment potential of food industry enterprises. a set sequence of quantitative and qualitative assessment of the efficiency of the enterprise's resources is necessary, because "the main production funds undergo wear, renewal, replacement and other changes and serve as a basis for the selection of materials for production"[2].at the final stage, financial in n o v a ti v e p o te n ti a l indicators of investment potential of food industry enterprises l a b o r p o te n ti a l f in a n ci a l p o te n ti a l p ro d u ct io n p o te n ti a l m a rk et in g p o te n ti a l p o ss ib le in v es tm en t p o te n ti a l m a n a g em e n t p o te n ti a l american journal of business management, economics and banking volume 25 june 2024 p a g e | 98 www.americanjournal.org resources are analyzed, because their availability (sufficiency) affects the volume of investments in the development of the production and technical base, improvement of personnel composition and motivation, measures and projects aimed at saving resources. the methodology for determining the investment potential of food industry enterprises is reflected in the tables below, in which it is recommended to use the standard values of indicators of the investment potential of food industry enterprises. in order to assess the level of investment potential of food industry enterprises, it is necessary to draw up a comparative table describing the level of the values of the coefficients obtained in the calculations using the data of this table. analysis and results when determining the indicators of the investment potential of food industry enterprises, the indicators of financial potential, which are its components, are used as solvency ratio, financial stability ratio, current liquidity ratio, return on private capital, return on debt, return on sales, economic the method of determination through indicators such as profitability, capital turnover ratio, credit turnover ratio was proposed by economists (table 1). table 1. indicators of financial potential of food industry enterprises 1. financial stability coefficient k2= d+r x d-revenues, r-reserve capital, x-expenses 2 current liquidity ratio k3= pm+mqk+dqs+tmz mkm pmfunds of the enterprise, mqq short-term financial investments, dqs net receivables, tmz commodity material reserves, µm-short-term liabilities of the enterprise. 3 return on equity k4=sf/ no yesaverage annual cost of private capital 4 loan funds profitability q5=(white/qm) white-borrowed funds;qm-totallong and short term debtfunds 5 profitability of sales k6=stf/t stfprofit from sale,t-sale proceeds 6 economic profitability k7=sf/a sfnet profit,a-total assets 7 capital turnover ratio k8=t/a t-sale proceeds, atotal assets 8 accounts payable rotation coefficient k9=mt/kq mt -cost of goods sold; kq is the average annual cost of payables c al cu la ti o n m et h o d s[ 1 0 ] 1 coefficient of financial independence kmm=m/a mtotal liabilities, atotal assets 2 assets profitability coefficient ar=sf/ no nopeaverage annual value of assets 3 financial autonomy coefficient ak= xk/a xk-private capital; a-total assets. 4 active working capital ratio fm=(ja-jm)/a yes -current assets; jm -current liabilities 5 accounts receivable rotation coefficient dak= tm/dk dk -average annual value of net receivables 6 efficiency coefficient fk=fj/fo fj-net profit received in the current period; fo-net profit earned in the previous period. 7 efficiency coefficient of activity mm.k= (dy.j/xj.j)/ (dy.o/xj.o) dy.j-gross income of the enterprise in the current period; xj.j-total expenses of the enterprise in the current period; dy.othe gross income of the enterprise in the previous period; xj.o total expenses of the enterprise in the current period. in addition to these indicators, in our opinion, it is appropriate to determine the indicators of the financial independence coefficient, the asset profitability coefficient, the financial autonomy american journal of business management, economics and banking volume 25 june 2024 p a g e | 99 www.americanjournal.org coefficient, the active working capital ratio, the receivables turnover ratio, the profitability coefficient and the profitability coefficients of the activity. when determining the main production capacity indicators, which are the components of the investment potential of food industry enterprises, we suggest determining them through the coefficient of return on capital, the coefficient of serviceability of fixed assets, and the coefficient of capital capacity (table 2). table 2 2. indicators of the main production capacity of food industry enterprises no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s[ 1 0 ] 1 fund return ratio fk=hx/no huh –volume of provided services; voq is the average annual cost of fixed assets 2 availability ratio of fixed assets yak=qq/bq qq-residual value of fixed assets; bqinitial value of fixed assets. 3 stock capacity ratio fs=voq/xh huh –volume of provided services; voq is the average annual cost of fixed assets food industrymethodological approach to determining the labor potential of enterprisesit is presented in table 3. the composition of the enterprise's labor potential includes social, functional, demographic, professional, professional and other characteristics of groups of workers (table 3). in determining the indicators of the labor potential of food industry enterprises, the productivity of workers and employees, the level of education of workers and employees, the coefficient of age indicators of workers and employees, the coefficient of indicators of work experience of workers and employees, the coefficient of dissatisfaction of workers and employees methods of detection were used. usually, the professional and skill potential of the organization is evaluated by the age structure, length of service, the level of knowledge of the employees and the efforts of the organization to increase the professional training of the employees.[3]. table 3 3. indicators of labor capacity of food industry enterprises no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s[ 1 2 ] 1 labor productivity of workers and employees (%) po = (rr1 + rr2 + ... + rrn)/ n rrn activity of the employee during the reporting period 2 education level of workers and employees (%) uv = chvo / chpers chpers-the total number of workers and employees, chvo -number of employees with higher education c al cu la ti o n m et h o d s[ 1 0 ] 1 coefficient of age indicators of workers and employees yes.k=yes/i yes.k-age ratio of workers and employees; iyo.-the number of workers and employees of a certain age 2 coefficient of indicators of work experience of workers and employees is.k=is/i is.k-length of service of workers and employees; is.-the number of workers and employees with a certain length of service. 3 dissatisfaction coefficient qiq=rib/rs rib -number of layoffs; rs is the number of employees on the list 4 coefficient of real income of workers and employees rdk=rdj/rdo rdj-the value of the real income of workers and employees in the current period; rdovalue of real income of workers and employees in the previous period. 5 unemployment rate of workers and employees ixb.k= ixj/ ixo ixj –workers and employees in the current periodnumber; rs -workers and employees in the pastthe number american journal of business management, economics and banking volume 25 june 2024 p a g e | 100 www.americanjournal.org a component of the investment potential of food industry enterprisesthe next type of potential is innovation potential in its definitionby local economist ebiskandarovusing such indicators as the scientific and research potential of the enterprise, the technical potential of the enterprise, the potential of the effectiveness of innovations, the potential of the impact of innovations on the standard of livingof enterprisesit is necessary to determine the innovative potential [5]. table 4 4. indicators of innovation potential of food industry enterprises no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s[ 1 4 ] 1 research potential of the enterprise if.u=ii.f./ i if.u-the share of workers and employees engaged in scientific activity; ii.f.the number of workers and employees engaged in scientific activity. 2 ii.u=ii.d./i if.u-share of workers and employees with academic degrees; ii.f.-the number of workers and employees with academic degrees. 3 ti.u=ti.i/h ti.u-share of scientific research works; ti.i-volume of scientific research works; h-total production volume. 4 technical potential of the enterprise kya=qk/qb kyathe adequacy ratio of fixed assets; qk-residual index of basic funds; qb-initial index of basic funds 5 qk=ab-ay ltdbalance index of fixed assets; ab-initial value of amortization allowances; ay accumulated value of amortization allowances. 6 aya=ak/ao ayathe renewal coefficient of fixed assets; investment value of fixed assets; the value of fixed assets at the end of the period. 7 xi.k=xt.i/xa.i hi.k-innovation spending coefficient; expenditures on technological innovations; xa.i-total costs incurred for applied research and development. 8 xa.k=xa.i/xj x.kthe ratio of costs incurred for practical research and development; xa.i-expenditures for public research and development; xj-total expenses. 9 the potential of innovation effectiveness iu=ih/ih iu-share of investments in innovation; the volume of investments; ih-production volume. 10 im.u=im/mya im.u-share of innovative products in created products and services; imquantity of innovative products; mya-total products and services created. 11 impact potential of innovations on standard of living xi.t=it.x/i xi.t-share of innovative goods and services per employee; it.x-quantity of innovative goods and services. the next type of potential, which is a component of the investment potential of food industry enterprises, is the marketing potential, and we propose to determine it based on the use of such indicators as the market share coefficient, the sales coefficient of goods, the coefficient of marketing staff and the coefficient of marketing expenses ( table 5). american journal of business management, economics and banking volume 25 june 2024 p a g e | 101 www.americanjournal.org table 5 5. indicators of marketing potential of food industry enterprises no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s[ 1 0 ] 1 market share coefficient buk=bms/jst bms -the value of the product sold in a particular market; jst -total cost of goods sold 2 marketer staff ratio xm.k=xm/xj hmm-number of marketer employees; xjtotal number of employees. 3 marketing expense ratio mx.k=mx/ux mx-cost of marketing expenses; cost of general expenses. when determining the potential potential, which is a component of the investment potential of food industry enterprises, it is proposed to look at it as a combined general indicator of all types of structural potential. in particular, it is proposed to look at the quality of the overall integral indicator of the probable financial potential coefficient, the probable main production potential coefficient, the probable marketing potential coefficient, the probable labor potential coefficient, the probable innovative potential coefficient and the probable investment potential coefficient (table 6). ). table 6 6. potential investment potential of food industry enterprises no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s[ 1 0 ] 1 probable financial capacity coefficient esm = ∑(ms1+...msn)/n esm coefficient of possible financial potential; ms-financial potential coefficient; naverage number of soi. 2 probable capital capacity ratio esak = ∑(aks1+...aksn)/n yespotential production potential coefficient; aksbasic capital capacity coefficient; naverage number of soi. 3 probable marketing potential coefficient esmr =∑(mars1+...marsn)/n esmrpotential marketing potential coefficient; marscoefficient of marketing potential; naverage number of soi. 4 probable labor capacity coefficient esmh =∑(mehs1+...mehsn)/n esmhcoefficient of potential innovative potential; mehs-labor capacity coefficient; naverage number of soi. 5 probable innovative potential coefficient esi =∑(ins1+...insn)/n esmhpotential innovative potential coefficient; ins innovation potential coefficient; naverage number of soi. according to it, as a result of the research conducted, it is possible to distinguish the types of potential, such as financial potential, production potential, labor potential, innovative potential, marketing potential, potential potential and management potential, as the constituents of the investment potential of the food industry enterprise. in determining the management potential of the enterprise, the utility coefficient is probablemethods of determination such as capacity coefficient, labor productivity, coefficient of real income of workers and employees, unemployment coefficient of workers and employees were used (table 7). american journal of business management, economics and banking volume 25 june 2024 p a g e | 102 www.americanjournal.org table 7 . management capacity no indicator name calculation method the content of conditional characters c al cu la ti o n m et h o d s1 1 efficiency coefficient fk=fj/fo fj-net profit received in the current period; fo-net profit earned in the previous period. 2 probability management capacity coefficient imb =(m1.2/m1.1+ m2.2/m2.1 ...+ mn.2/mn.1)/n imbcoefficient of possible management potential; mn.1 amount of interest; n is the number of interests. 3 efficiency coefficient of activity mm.k= (dy.j/xj.j)/ (dy.o/xj.o) dy.j-gross income of the enterprise in the current period; xj.j-total expenses of the enterprise in the current period; dy.othe gross income of the enterprise in the previous period; xj.o total expenses of the enterprise in the current period. 4 coefficient of real income of workers and employees rdk=rdj/rdo rdj-the value of the real income of workers and employees in the current period; rdovalue of real income of workers and employees in the previous period. 5 unemployment rate of workers and employees ixb.k= ixj/ ixo ixj –workers and employees in the current periodnumber;rs is the number of workers and employees in the past period. in all tabular data giventhe level of investment potential of food industry enterprisescalculation methods are presented. as a result of his researchinvestment potential of food industry enterprisesas the founders, it is possible to distinguish indicators of the types of potential, such as financial potential, basic capital potential, marketing potential, labor potential, innovative potential, potential investment potential. conclusions and suggestions therefore, in our opinion, it is necessary to have a single normative coefficient that determines the level of investment potential of food industry enterprises. in our opinion, it is possible to determine this indicator, which means that all indicators that make up the investment potential are expressed through a common integral coefficient. invo =( ms* ichs*ins* mehs*mars* esin* bs)/7 here: invo the integral coefficient of the level of investment potential of food industry enterprises; ms – coefficient of financial potential of food industry enterprises; ichs is the coefficient of basic capital capacity of food industry enterprises; ins coefficient of innovative potential of food industry enterprises; mehs coefficient of labor capacity of food industry enterprises; mars – coefficient of marketing potential of food industry enterprises; esin coefficient of possible investment potential of food industry enterprises; bs is the coefficient of management capacity of food industry enterprises. based on this formula, the single value of the level of investment potential of food industry enterprises is created. in conclusion, it can be said that a single indicator should be used to express the level of investment potential of food industry enterprises, and through this indicator it will be possible to get an idea of the general economic development and investment situation of the enterprise. . 1 developed by the author american journal of business management, economics and banking volume 25 june 2024 p a g e | 103 www.americanjournal.org references 1. ivanova v.n. povyshenie kachestva pishchevoy produktsii klyuchevoy priority realizationsii gosudarstvennoy politiki. .-m.: 20214 -162 p. 2.khlynin e.v. method and model of upravleniya protsessom vosproizvodstva osnogo capitala / e.v. khlynin, s.v. gorodnichev, izvestia tulskogo gosudarstvennogo universiteta. economic and legal science. 2014. no. 3-1. s. 114-123. 3. sudakova e.s. otsenka trudovogo potentiala personala: podkhody, metody, metodika / e.s. sudakova // internet magazine "naukovedenie".-2014.vypusk №4.-s.1-26. 4. abulkasimov kh.p. the human factor in the emerging market economy and ways to activate it. t.: tmi. 2005. 114 p. 5. iskandarov e.b., doctor of philosophy (phd) dissertation on the topic "ensuring sustainable innovative development in construction industry enterprises of uzbekistan" 08.00.03-industrial economics. 2022 b-13. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 85 www.americanjournal.org digital development of dividend policy in joint-stock companies in the republic of uzbekistan shermukhamedov akmal komiljonovich senior lecturer, tashkent state university of economics department "innovative management" skazka.6313@gmail.com a b s t r a c t k e y w o r d s it is known that the dividend policy is an integral part of the decisions of the company's management in the field of financing. the most important aspect of the company's dividend policy is to find the optimal ratio of profit distribution between dividend payments and that part of it that remains within the company for its development. dividend, management, corporate governance, enterprises, price, principles, transparency, timeliness, validity, justice, sequences, development. introduction formalization of the company's dividend policy allows shareholders to predict dividend payments. in the course of the study, the fact that companies have documents regulating dividend policy was positively assessed. since the main goal of the dividend policy is to establish the necessary proportionality between the current consumption of profit and its future growth, which will provide investment financing, then with the help of the dividend policy it is possible to maximize the market value of the enterprise and ensure strategic development. department of methods: when studying corporate governance practices of companies from the point of view of the right of shareholders to receive income, the following aspects are analyzed: existence of an approved dividend policy and consolidation in internal documents of the principles for calculating dividend payments and the minimum share of net profit allocated for the payment of dividends; practice of paying dividends on ordinary and preferred shares; dividend history. based on the purpose of the dividend policy, it is understood as an integral part of the overall financial policy of the enterprise, which consists in optimizing the proportion between consumed and capitalized profit in order to maximize the market value of the enterprise. american journal of business management, economics and banking volume 34 march 2025 p a g e | 86 www.americanjournal.org figure 1. work of the board of directors on the development of dividend policy1 the data in the figure show that the development of a dividend policy is an important task for the board of directors, and the executive body in general and the financial manager in particular play a key role in advising it. the dividend policy of enterprises is based on the following basic principles2: the principle of transparency, which means the definition and disclosure of information about the obligations and responsibilities of the parties involved in the implementation of the dividend policy, including the procedure and conditions for making a decision on the payment and amount of dividends; the principle of timeliness, implies the establishment of time limits in the implementation of dividend payments; the principle of reasonableness, which implies that a decision on the payment and amount of dividends can be made only if the company achieves a positive financial result, taking into account development plans and its investment programs based on the real financial position of the company; the principle of fairness, implies ensuring equal rights of shareholders to receive information about decisions made on the payment, amount and procedure for paying dividends; the principle of consistency, which implies strict implementation of the procedures and principles of the dividend policy; the principle of development, the presence of a constant connection with an increase in the dividend policy within the framework of the corporate governance procedure and a review of its presence in changing the statistical goals of the company; sustainability, the company's striving for a stable level of dividend payments. below are the main types of dividend policy and methods of dividend payments. 1 developed by the author based on the studied materials 2 grachev a.n. financial stability of the enterprise. criteria and methods of evaluation in a market economy. m.: business and service, 2013. p. 400. executive agency advises board of directors development of a dividend policy a task american journal of business management, economics and banking volume 34 march 2025 p a g e | 87 www.americanjournal.org table 1 main types of dividend policy and methods of dividend payments3 № types of dividend policy methods of dividend payments 1 aggressive policy a. method of constant percentage distribution of profits b. methodology for the constant growth of dividend payments. 2 moderate politics methodology for the payment of the guaranteed minimum and extra dividends 3 сonservative politics a. residual dividend methodology b. fixed payment methodology the data in the table show that the main types of dividend policy are aggressive, moderate and conservative. this type of policy has its own types of dividend payment methods. let's consider in detail. in an aggressive policy, there is a method of constant percentage distribution of profits. the essence of this technique is dividend yield = const. assumes a stable percentage of net income for a long time, directed to the payment of dividends on ordinary shares. it does not contribute to the growth of the market price of the share, because. there may be fluctuations in the amount of dividends received. but it is convenient for stably operating industries, in which earnings per 1 ordinary share fluctuate slightly. the second technique is called the constant growth of dividend payments. increase in dividend per 1 share at the planned level of the dividend output indicator. it provides for a stable growth of dividends per share, while ensuring a high market value of shares and forming a positive image among potential investors4. moderate policy uses the method of paying a guaranteed minimum and extra dividend. dividend per share = const, premium to regular dividends. it is based on the following principles: constant, regular payments of fixed amounts of dividends per share; in periods of the most successful work payment of an extraordinary extra-dividend in addition to fixed dividends. this is the most balanced method, because ensures the stability of dividend payments, and during periods of economic growth allows you to increase their value, thereby encouraging shareholders. helps to smooth fluctuations in the market value of shares. when evaluating a company's dividend payment practices, it takes into account when dividends are paid and how well companies fulfill their obligations to pay dividends when they are announced. extra dividend is a premium accrued in excess of regular dividend payments and is not related to a change in the established rate. this payment is one-time. its role is to maintain a stable market value of shares, create positive information about the activities and development prospects of the joint stock company. results: it is known that when examining a statistical hypothesis, two hypotheses are compared. these are called the null hypothesis and the alternative hypothesis. the null hypothesis is a hypothesis that states 3 developed by the author based on the studied materials 4 grachev a.n. financial stability of the enterprise. criteria and methods of evaluation in a market economy. m.: business and service, 2013. p. 400. american journal of business management, economics and banking volume 34 march 2025 p a g e | 88 www.americanjournal.org that there is no connection between the phenomena whose connection is being studied, or at least no connection in the form given by the alternative hypothesis. the alternative hypothesis, as the name suggests, is an alternative to the null hypothesis: it expresses the existence of some kind of relationship . the following drawing, achieved using the stata program, tells about the parameters of the model. according to it, the h0 hypothesis is negated, recognizing that there is a nonlinear relationship between the h1 hypothesis – the resultant factor and independent variables. the sem model is explained using the following general formula: xi=βiξ+δi (3 here, xi observed variables; ßi-coefficient; ξ-latent constructor; δi is the default error. models in which structural endogenous latent variables are involved, including the sem path model of our choice, use the following formula: nj = ∑yjk ξk+ß ßcl * nl + zc (4) here, nj-endogenous latent variable; yjk is the binding coefficient from exogenous to endogenous latent variable; ßjl-coefficient of endogenous latent variables; zj-standard deviation. we have obtained the natural logarithmic values of all variables, including both masculine and nonmasculine variables, so that the calculations in the study are easy. number of observations = 16 log likehood =-99.798313 p > chi2 i 0.000 0.57* cfi i 0.992 comparativ fit index tli i 0.982 tucker-lewis index cd i 0.962 coefficient of determination 0.58*** 1.026*** 0.012** figure 2. sam path model . as a comment on the graph, the p values of the coefficients are marked if in the range 0.1-0.05 (*), if in the range 0.02-0.05 (**), if in the range 0.00-0.02 ( * * * ). ln (dividend payout ratio) ln (dividend per share) -1.6* ln (net income) -1.3*** ln (net profit) ln (net profit marjin) e1 e2 0.53 0.32 american journal of business management, economics and banking volume 34 march 2025 p a g e | 89 www.americanjournal.org the above sem model graph will again be explained by the formula: y1= y1x1⋅x1 + y1x2⋅x2 + y1x33 x3 + β1 + ϵy1 (5 is expressed in terms of coefficients as follows: ln (net income) = 0.57⋅ln (dividend payment ratio) + 0.58⋅ln (dividend payment per share) + 0.012⋅ln (net profit) − 1.6 +yy1 the second equation is explained as follows: y2=ß2y1⋅y1 + β2 + ϵy2 (6) < br > the above formula is expressed in terms of coefficients as follows: ln (net profit) = 1.026⋅ln (net income) 1.3 +yy2 (7) here (applies to both of the above equations, y1 and y2-endogenous factors (y1-net income, y2-net profit); x1 , x2, x3 – exogenous factors(x1-dividend repayment ratio, x2-dividend payment per share, x3-net profit); intermediate coefficients with respect to y1x1, y1x2, y1x3 – y1; ß2y1-intermediate coefficient from y1 to y2; the constant for β1-y1 is; the constant for β2-y2 is; error for ϵy1-y1; error for ϵy2-y2. interpreting the above models, it can be concluded that an increase in the dividend payment ratio by the first equation by one percent also leads to an increase in net income by 0.57 percent, as opposed to other factors as invariant. an increase in dividend payment per share by one percent also leads to an increase in net income by 0.58 percent, as opposed to other factors as fixed. also, an increase in net profit by one percent will also lead to an increase in net income by 0.012 percent, compared to other factors as fixed. references 1. laws of the republic of uzbekistan, decrees and resolutions of the president, resolutions of the cabinet of ministers constitution of the republic of uzbekistan. -t.: uzbekiston, 2018. 2. law of the republic of uzbekistan "on joint-stock companies and protection of shareholders' rights". -t.: uzbekistan 2014. 3. law of the republic of uzbekistan "on investments and investment activities". -t.: uzbekistan 2019. main literature 1. tricker. b, oxford. corporate governance: principles, policies, and practices. 4th edition. uk, 2019. 2. шермухамедов а. principles and organization of dividend policy development in joint stock companies //economics and innovative technologies. – 2023. – т. 11. – №. 5. – с. 132-145. 3. temirov a.a. dividends and dividend policy. training and metodology complex. -t.tseu, 2020, -256 p. american journal of business management, economics and banking volume 34 march 2025 p a g e | 90 www.americanjournal.org 4. шермухамедов а. принципы и организация разработки дивидендной политики в акционерных обществах узбекистана //economics and innovative technologies. – 2024. – т. 12. – №. 1. – с. 90-103. 5. shermuxamedov a. o‘zbekistonning aksiyadorlik jamiyatlarida dividend siyosatini ishlab chiqish tamoyillari //central asian journal of economics and management. – 2023. – №. 3. – с. 04-12. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 69 www.americanjournal.org statistical analysis of the role of sectors in economic development ruziyev alisher ibroimovich, tashkent state university of economics, associate professor, department of "economic statistics" alisherruziev1986@mail.ru a b s t r a c t k e y w o r d s the article analyzes the place and role of industries in ensuring economic development, the share and dynamics of industries in the production of industrial products based on international classifications, and also notes the directions for the further strategic development of the industrial sector. industry, manufacturing, agricultural sector, services, products, gdp, gva, production, structural shifts, industry share, rates of change. introduction the development of industries will be a powerful factor in providing the local market with affordable and high-quality products in the regions of the country, creating jobs and increasing employment, as well as increasing export potential. industry is one of the sectors that makes a huge contribution to the development of the economy of uzbekistan. today, the country's industry is considered a developing sector and has reached a level where it can easily compete with foreign-made products in certain types of products. this was achieved through structural changes in industrial sectors that produce the main industrial products for both domestic and foreign markets. among the branches and spheres producing material goods, industry occupies the most significant place and is the leader. the added value (gv) created in the industrial sector of our republic in 2023 amounted to 23.5% of the gross domestic product (gdp) and 24.7% of the gross value added (gva) of industries. the key to the successful growth of all sectors of the economy depends on the rate of development of this sector. in the resolution of the president of our country sh.m.mirziyoyev dated may 1, 2019 no. pp-4302 "on measures for further development of industrial cooperation and expansion of production of indemand products," "further expansion of industrial production, wide involvement of small business entities in industrial activities, strengthening and development of industrial cooperation, reduction of the cost of manufactured products" [1] is provided. currently, for the sustainable development of the country's economy, opportunities are being created to strengthen export potential through the sale to the outside world of final goods that are competitive american journal of business management, economics and banking volume 34 march 2025 p a g e | 70 www.americanjournal.org in the world market due to the increase in the volume of production in sectors and spheres of the economy that create high added value. in this regard, the president of the republic of uzbekistan sh. m. mirziyoyev in his address to the oliy majlis on december 29, 2020 ..."economic growth is achieved primarily by creating competitive industrial chains and increasing investments in such projects"[2]. as a result of directing investments to production sectors, completely new industrial sectors were created in the country during the years of independence, including automotive, petrochemical, oil and gas engineering, modern construction materials industry, railway engineering, consumer electronics, pharmaceuticals, modern food and textile industries. this can be explained by the fact that the share of the industrial sector in the volume of investments in fixed assets in economic activity in 2023 increased by 20 percentage points compared to 2010 and amounted to 51.6 percent. the development of enterprises operating in the real sector of the republic of uzbekistan and the formation of a competitive environment among them, the special role of these enterprises in the growth of the country's gross domestic product, further increases their desire to produce competitive and highquality products. related literature review the role of the real sector in ensuring the sustainable development of the country's economy is invaluable. therefore, the relevance of the development of the industrial sector has always been at the center of attention of researchers. in particular, foreign scientists yu.rodionov, r.s.porter, d.deveryuks, b.roberts, r.n.nureev created scientific innovations on the topic, and domestic scientists a.abduhamidov, u.mukhitdinov, a.a.ortikov, kh.ishbutaeva, sh.nizomova, e.kh.makhmudov, m.isakov, kh.d.khuzhakulov conducted a number of scientific studies. in particular, a.ortikov "a number of opportunities, geographical and economic factors for the development of industry in uzbekistan" [6], m.p.narzikulov "in the process of developing an industrial development strategy, the main attention is paid to structural changes" [7], e.kh. makhmudov "strategic directions for creating conditions for the development of industrial sectors, primarily the creation of a favorable macroeconomic environment, including such tools as budget, tax, monetary, credit, price, and currency policy" [8], khudzhakulov kh.d., sayfullaev s.n. "statistical study of structural changes in the industrial sector of uzbekistan based on international classification" [9], mamadzhanov d.g. "assessment of the economic efficiency of the development of the industrial sector of uzbekistan" [10]. research methodology in the research process, methods of economic and statistical analysis, synthesis, statistical grouping, expert assessment, and scientific abstraction were used. result and discussion if we look at the results of 2023, the country's gross domestic product increased by 6.3 percent, the volume of added value in industry by 3.4 percent, and about 70.0 percent of the manufactured products were finished goods with high added value. the volume of industrial products produced by enterprises of our republic in 2023 in current prices amounted to 659.0 trillion soums, compared to american journal of business management, economics and banking volume 34 march 2025 p a g e | 71 www.americanjournal.org 2010, the growth rate of added value created in the industry was 205.2 percent (171.2:90.2), and the average annual growth rate was 5.1 percent (table 1). table 1 main macroeconomic indicators of uzbekistan volume and dynamics years gdp and gva at 2020 prices, trillion soums per capita at 2020 prices, thousand soums gdp branches gva gdp gva total of which in industry across all sectors of which in industry a 1 2 3 4 5 6 2010 338,9 311,3 90,2 11865,2 10898,9 3158,0 2011 364,4 335,3 94,1 12420,2 11428,3 3207,3 2012 390,2 360,4 99,5 13105,2 12104,3 3341,8 2013 418,7 387,1 106,9 13844,4 12799,6 3534,7 2014 447,6 414,2 111,8 14552,5 13466,5 3634,9 2015 479,8 444,4 117,7 15329,6 14198,6 3760,5 2016 508,1 471,1 124,0 15954,0 14792,2 3893,5 2017 530,5 491,3 130,5 16379,2 15168,9 4029,2 2018 559,1 517,4 144,6 16965,0 15699,7 4387,7 2019 591,0 547,4 151,8 17599,4 16301,1 4520,5 2020 602,2 557,8 153,2 17591,7 16294,6 4475,3 2021 646,8 599,6 166,5 18524,9 17173,1 4768,7 2022 685,6 644,5 165,6 19232,4 18079,5 4534,8 2023 728,8 693,1 171,2 20015,2 19034,7 4701,7 source: data from the statistics agency under the president of the republic of uzbekistan, author's calculations. in general, industry is one of the main sectors of the republic's economy. because industry fundamentally differs from other spheres and sectors in its creation of added value, its role in meeting the needs of the population, and its high level of production locomotive. the development of the industrial sector leads to the development of the national economy at a stable pace. in the industrial sector, the processes of diversification will be improved due to the processing of all extracted and cultivated resources, the production of new products from them, and the expansion of the range and nomenclature. the industrial sector, being a large production institution, also plays an important role in ensuring employment of the population and creating new jobs. the average annual number of people employed in the industry was 1605.7 thousand people in 2010, 1768.7 thousand people in 2015, 1809.5 thousand people in 2020, 1826.1 thousand people in 2023, or 13.8; 13.5; 13.7 and 13.1 percent. as a result, in 2023, compared to 2010, the number of people employed in the industry increased by 13.7 percent, while in the economy as a whole this figure was 20.5 percent. another important feature of the industrial sector in increasing employment is its activity in processing and creating added value. that is, as the number of processing enterprises increases and the value added increases, the number of employees employed in industry also increases. it can be seen that there is a direct correlation between american journal of business management, economics and banking volume 34 march 2025 p a g e | 72 www.americanjournal.org the growth of added value and processing and the change in the number of employees employed in the industry. industry contributes to the coordination of economic integration processes between countries participating in the world economy and ensuring a balance between economic sectors. ultimately, all countries will have the opportunity to rationally utilize their natural, labor, and financial resources, as well as all achievements of science and technology. this, in turn, ensures the growth of the production of products with high added value in the chemical, oil and gas, and petrochemical industries, mechanical engineering, and metals. diagram 1. gross domestic product (gdp), gross value added (gva) of industries and added value created in industry additional growth rates of gva, in percent. the decree of the president of the republic of uzbekistan "on the action strategy for five priority areas of development of the republic of uzbekistan in 2017-2021" specifically emphasizes the tasks of "further modernization and diversification of industry by transferring it to a qualitatively new level, aimed at the accelerated development of high-tech processing industries, primarily the production of finished products with high added value based on deep processing of local raw materials" [3]. it should be noted that structural changes have occurred in the sectors and spheres of the economy in recent years. in 2023, compared to 2010, the share of industry in gdp and gross value added of industries increased by 7.0 and 6.0 percentage points, construction by 2.3 and 2.1 percentage points, services by 4.0 and 0.9 percentage points, respectively, while agriculture, forestry and fisheries decreased by 6.5 and 9.0 percentage points. 7.1 7.5 7.1 7.5 6.9 7.2 5.9 4.3 5.3 5.7 1.9 7.4 6.3 7.5 7.7 7.5 7.4 7.0 7.3 6.0 4.4 5.4 5.8 1.9 7.5 7.5 5.9 4.4 5.7 7.3 4.5 5.3 5.4 5.2 10.8 5.0 0.9 8.7 3.4 0 2 4 6 8 10 12 2010 y 2011 y 2012 y 2013 y 2014 y 2015 y 2016 y 2017 y 2018 y 2019 y 2020 y 2021 y 2023 y gdp gross value added industrial value added american journal of business management, economics and banking volume 34 march 2025 p a g e | 73 www.americanjournal.org table 2 gdp and gross value added (gva) of industries in uzbekistan volume change indicators years the rate of change of gdp and gva, % sectors share of gva in gdp, % share of industry value added, % gdp gva across all sectors of which in industry across all sectors of which in industry networks are in cls in the volume of industrial production a 1 2 3 4 5 6 7 2010 107,1 107,5 105,9 88,0 16,5 18,7 34,1 2011 107,5 107,7 104,4 88,7 15,4 17,4 33,5 2012 107,1 107,5 105,7 88,8 16,1 18,1 35,6 2013 107,3 107,4 107,5 89,6 16,6 18,5 35,9 2014 106,9 107,0 104,5 90,2 17,2 19,1 38,3 2015 107,2 107,3 105,3 90,9 17,4 19,1 39,4 2016 105,9 106,0 105,4 91,2 17,8 19,5 40,6 2017 104,4 104,3 105,2 89,0 18,8 21,1 40,0 2018 105,4 105,3 110,8 89,3 22,6 25,3 40,1 2019 105,7 105,8 105,0 91,5 25,7 28,1 42,2 2020 101,9 101,9 100,9 92,6 25,4 27,5 41,5 2021 107,4 107,5 108,7 92,8 25,8 27,8 41,1 2022 106,0 107,5 100,0 94,0 24,1 25,7 43,5 2023 106,3 107,5 103,4 95,1 23,5 24.7 43,7 source: author's calculations based on data from the statistics agency under the president of the republic of uzbekistan. as a result of such structural shifts, the share of sectoral gva in gdp increased by 4.3 percentage points, and the share of net taxes on products decreased from 9.2 to 4.9 percent (tables 2 and 3). according to the analysis results, in our republic in 2023, compared to 2022 and 2010, the growth rate of gdp was 106.3 and 215.0 percent, the gross value added of industries was 107.5 and 222.6 percent, and the added value created in the industrial sector was 103.4 and 189.8 percent, respectively, and in 2010-2023, the average annual growth rate of gdp, the added value of industries and industry was 6.1; 6.3 and 5.1 percent, respectively, the coefficient of value added decrease in the industrial sector was 0.883 or 88.3 percent (1.898:2.150) and 0.852 or 85.2 percent (1.898:2.226) relative to gdp and gross value added of industries. these data indicate that the growth rate of production in the industrial sector was somewhat low in dynamics. based on the conducted research and analysis, in 2010-2023, the volume of gdp per capita, gva of sectors and industry amounted to 1.687; 1.746 and 1.489 times (tables 1 and 2). american journal of business management, economics and banking volume 34 march 2025 p a g e | 74 www.americanjournal.org table 3 change in the share of sectors in gdp and gva in uzbekistan (in percent) years gdp volume, in current prices, trillion soums share of industries, % (excluding industry) agriculture, forestry and fisheries construction services in gdp networks are in cls in gdp networks are in cls in gdp networks are in cls a 1 2 3 4 5 6 7 2010 78,9 27,0 30,6 4,8 5,4 39,9 45,3 2011 103,2 29,7 33,5 4,4 4,9 39,2 44,2 2012 127,6 28,9 32,6 4,4 4,9 39,4 44,4 2013 153,3 27,8 31,0 4,8 5,3 40,5 45,2 2014 186,8 28,7 31,8 4,9 5,4 39,4 43,7 2015 221,4 29,2 32,1 5,1 5,7 39,1 43,1 2016 255,4 29,3 32,1 5,1 5,6 39,0 42,8 2017 317,5 28,7 32,2 4,8 5,4 36,8 41,4 2018 424,7 26,8 30,0 5,2 5,8 34,8 38,9 2019 529,4 24,6 26,9 5,8 6,3 35,3 38,7 2020 602,2 25,1 27,1 6,2 6,7 35,8 38,7 2021 738,4 25,0 26,9 6,1 6,6 36,8 39,6 2022 995,6 20,9 22,3 7,3 7,8 41,5 44,2 2023 1192,2 20,5 21,6 7,1 7,5 43,9 46,2 source: author's calculations based on data from the statistics agency under the president of the republic of uzbekistan. structural changes and the share of industries in the production of industrial products according to the new structure of the oked in our republic are characterized by the data presented in table 4. the table data indicate that in 2010, 13.4% of the total industrial output was created in the mining and quarrying industry (b), 75.4% in the manufacturing industry (c), in 2023 these indicators were 8.4% and 84.0%, respectively, i.e., compared to 2010, they decreased by 5.0 percentage points and increased by 7.6 percentage points. in the manufacturing industry (s-section), the metallurgical industry has the largest share, which amounted to 19.2% in 2023 and accelerated by 6.4 percentage points compared to 2010. the statistics agency under the president of the republic of uzbekistan determines the growth rate and dynamics of industrial production based on the index of the physical volume of added value created in the industry. we must acknowledge the methodological correctness of such accounting, since not all manufactured products are final products in the economy, which is explained by the presence of repeated calculations and intermediate consumption. however, it is advisable to analyze the economic process by determining the volume of output and its dynamics for individual economic entities. the most important factor in increasing the efficiency of the economy is the reduction of production costs. american journal of business management, economics and banking volume 34 march 2025 p a g e | 75 www.americanjournal.org table 4 proportion and dynamics of output by type of economic activity in the structure of industrial production industrial sectors by enlarged sections years 2010 2015 2016 2017 2018 2019 2020 2023 volume of industrial production (b, c, d, e) total, billion soums 38119,0 97598,2 111869,4 148816,0 235340,7 322535,3 368740,2 658991,7 including, % of the total: b. mining and quarrying 13,4 9,7 8,1 10,3 12,3 13,5 9,0 8,4 c. manufacturing industry 75,4 80,5 81,8 81,1 80,6 79,0 83,0 84,4 d. electricity, gas, steam supply and air conditioning 10,7 9,2 9,4 7,8 6,2 6,8 7,4 6,7 e. water supply, sewerage system, waste collection and disposal 0,5 0,6 0,7 0,8 0,9 0,7 0,6 0,5 index of physical volume of industrial production (compared to the previous year, %) throughout the industry 105,9 105,3 105,4 105,2 110,8 105,0 100,9 106,3 b. section 94,8 102,9 100,8 117,6 126,5 99,4 78,0 99,5 c. by section 108,9 105,9 106,7 104,2 107,9 106,6 107,9 107,4 d. by section 118,5 105,1 103,6 95,5 103,1 105,1 106,8 109,5 e. by section 118,6 106,8 110,0 108,0 111,3 102,2 99,1 103,2 source: calculated based on data from the statistics agency under the president of the republic of uzbekistan. therefore, it is necessary to ensure cost savings for intermediate consumption in the production of products and services using advanced modern high technologies in industries. although the share of intermediate consumption in the production of industrial products decreased from 65.9% in 2010 to 56.3% in 2023, it still has a high share (table 2, diagram 2). diagram 2. of value added in the volume of industrial production and the share of intermediate consumption (as a percentage of the total). 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 y 2013 y 2015 y 2020 y 2021 y 2022 y 2023 y 34.1 35.9 39.4 41.5 41.1 43.5 43.7 65.9 64.1 60.6 58.5 58.9 56.5 56.3 value added intermediate consumption american journal of business management, economics and banking volume 34 march 2025 p a g e | 76 www.americanjournal.org in the development of the economy, the application and widespread introduction of advanced high technologies in industries and spheres is of great importance. the volume of work carried out in this area is not yet at the required level. let's say that in the structure of the manufacturing industry, which is considered the driver of the economy, the share of high-tech production in 2020 was 2.0 percent, medium-high-tech 22.4 percent, medium-low-tech 39.9 percent, and low-tech 35.7 percent, and in 2023 these indicators were 1.5; 24.6; 37.5 and 36.4 percent. therefore, based on this situation, it is advisable to increase the share of high-tech industries. in 2023, compared to 2010, the physical volume indices for the total industry amounted to 206.9 percent, including 129.5 percent in section b, 250.1 percent in section c, 166.0 percent in section d, and 169.8 percent in section e of industrial production. 7.3; 4.0 and 4.2 percent (table 4). result in order to increase the share of industry in the gross value added of industries, it is necessary to implement a set of measures to support and stimulate enterprises carrying out structural transformations, production based on deeper processing of local mineral resources, as well as active diversification and modernization of leading industries. despite the fact that in recent years, as a result of structural changes in the industrial sector, the potential of the industry in the country's economy has significantly increased, however, investments in the industrial complex do not contribute to an increase in the share of industry exports at the required level. in the future, we propose the following directions that will ensure the development of the country's industry: development of scientifically based projects aimed at the development of investment production, meeting large-scale needs; improving the innovative potential of enterprises, creating new enterprises that require science and high technologies, and producing products that can compete with imported products; ensuring the growth of export volumes based on the acceleration of the policy of importing modern equipment and technologies for the production of industrial products of developed countries; increasing the share of the private sector and small business in industry; increasing the share of joint ventures in the development of industry; expansion of the scale of exports of manufactured products, etc. in the 3 priority areas of the decree of the president of the republic of uzbekistan "on the development strategy of new uzbekistan for 2022-2026," the tasks of "continuing the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in the gross domestic product, increasing the volume of industrial production by 1.4 times" [3] and in the 47th goal of the "uzbekistan-2030" strategy, bringing the volume of added value in industry to 45 billion dollars and creating 2.5 million high-income jobs" [3] have been defined. in conclusion, it should be noted that all the reforms being implemented in the republic are aimed at ensuring and increasing the macroeconomic stability of our country and improving the well-being of the population. american journal of business management, economics and banking volume 34 march 2025 p a g e | 77 www.americanjournal.org references 1. resolution of the president of the republic of uzbekistan dated may 1, 2019 no. pp-4302 "on measures for the further development of industrial cooperation and expansion of the production of in-demand products" https://lex.uz/docs/4318270 2. decree of the president of the republic of uzbekistan sh. mirziyoyev address to the oliy majlis on december 29, 2020. https://president.uz/ru/lists/view/4056. 3. decree of the president of the republic of uzbekistan dated february 7, 2017 no. up-4947 "on the action strategy for the further development of the republic of uzbekistan." https://lex.uz/ru/docs/3107036 4. decree of the president of the republic of uzbekistan dated january 28, 2022 no. up-60 "on the development strategy of new uzbekistan for 2022-2026." (national database of legislation, january 29, 2022, no. 06/22/60/0082) 5. decree of the president of the republic of uzbekistan dated september 11, 2023 no. up-158. on the strategy "uzbekistan-2030." https://lex.uz/docs/6600413 6. ortikov a. industrial economics. textbook. t.: tdiu, 2009. 236 p. 7. стратегия дальнейшего повышения конкурентоспособности нatsiональной экономики: материалы 1у-го форума экономистов / отв. ред. м.п. нарзикулов. ташкент. вак1паргез$, 2012. с. 8. 8. makhmudov e.kh., ortikov a., karimov f. enterprise as the main link of the economy. / partner. february 7, 2010. 9. khuzhakulov kh.d., sayfullaev s.n. statistical study of structural changes in the industrial sector of uzbekistan based on the international classification// journal "economics and education," 2017, no. 6, pp. 129-134. 10. mamadjanov d.g. assessment of the economic efficiency of the development of the industrial sector in uzbekistan. scientific electronic journal "economics and innovative technologies." 2018, no. 3 may-june. 11. www.stat.uz. calculated based on data from the statistics agency under the president of the republic of uzbekistan. https://lex.uz/docs/4318270 https://president.uz/ru/lists/view/4056 https://lex.uz/ru/docs/3107036 https://lex.uz/docs/6600413 american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 58 www.americanjournal.org supplier development and supply chain performance of fertilizer manufacturing firms in nigeria hilary waite isoghom department of marketing/entrepreneurship/procurement, faculty of management sciences, federal university, otuoke, pmb, 126, yenagoa, bayelsa state, nigeria. jekey, lekue department of marketing, faculty of management science, university of port harcourt, rivers state, nigeria. email for correspondence: isoghom@fuotuoke.edu.ng a b s t r a c t k e y w o r d s the study aimed at investigating the relationship between supplier development and supply chain performance of fertilizer manufacturing companies in nigeria. to achieve the study's objectives, two specific goals were established, and corresponding null hypotheses were formulated to address the research questions aligned with these objectives. a correlational research design was employed to ensure the effective collection and analysis of necessary data. primary data collection methods were utilized, and a census approach was adopted to include the entire target population in the study. the sample comprised five managers from each of the seven fertilizer manufacturing companies operating in nigeria, totaling 35 respondents. to ensure the reliability of the research instrument, cronbach’s alpha was employed, with a reliability threshold set at 0.70. the study used the pearson productmoment correlation to measure the relationship between supplier development and the various metrics of supply chain performance, specifically innovativeness and responsiveness. the statistical package for social sciences (spss) software, version 23.0 was used in conducting the analysis. findings of the study revealed a positive and significant relationship between supplier development and the supply chain performance of fertilizer manufacturing firms in nigeria. consequently, the study concludes that supplier development has a significant impact on the supply chain performance of these companies. based on these findings, it is recommended that the management of fertilizer manufacturing companies in nigeria should provide targeted education and training to partner suppliers, equipping them with essential knowledge about the firm's business focus and expectations. supplier development, supply chain performance, innovativeness, responsiveness, relational exchange. american journal of business management, economics and banking volume 27 august 2024 p a g e | 59 www.americanjournal.org introduction organisations are facing mounting pressure to discover innovative methods of generating and providing value to their customers through supplier development, as a result of the rapidly evolving global economy and diminishing global market. establishing cooperative partnerships between companies and their suppliers, which prioritise shared investments, joint improvement initiatives, information exchange, multiple communication channels, initiatives that promote product development, strategies for joint production and scheduling, and collaborative problem-solving, is anticipated in improving the competitive capabilities of all the parties involved (vanpoucke, vereecke, & boyer, 2014; zimmermann & foerstl, 2014). a comprehensive comprehension of the supplier connection is crucial for a company's competitiveness (munyimi & chari, 2018). rajasthanendra, mahajan, and joshi (2012) contend that supplier development is a crucial mechanism for enhancing the rapport between consumers and suppliers. rajendra et al. (2012) propose that enterprises should engage in supplier development initiatives in order to enhance their competitive advantage and foster long-term partnerships with suppliers. supplier development significantly impacts the competitive performance outcomes of the buyer. organisations commonly employ supplier development as a means to decrease expenses, enhance quality, and ensure timely delivery of products. it also serves to explore innovative supply methods, introduce new items to the market, and provide suppliers with training on a structured approach for ongoing improvement (lukhoba & muturi, 2015). it is commonly known as the practice of enhancing suppliers' technical abilities, quality, delivery, and cost through a lasting collaboration between the manufacturing company and their supplier (chavhan et al., 2012). the success of every firm in the present day depends not only on effectively managing its client connections, but also considering a broader reference group within the supply chain, which includes its suppliers. in order to fully optimise the procurement function, it is essential for any organisation to establish and nurture connections with a skilled and proficient network of suppliers, and to derive the utmost value from these partnerships. various research has endeavored to determine the empirical correlation between the development of suppliers and the performance of the supply chain. in their study, gudda, keitany, and ombok (2023) analysed how supplier integration moderate the relationship between supplier development and procurement performance in steel manufacturing firms. mwangi and muli (2022) examined the impact that management of supplier relationship has on the performance of food and beverage manufacturing firms. similarly, hassana and cross (2020) investigated how supplier development affect the operational performance of manufacturing firms. however, the main goal of this study was to empirically examine the relationship between supplier development and the competitiveness of the supply chains in fertilizer manufacturing companies in nigeria. the specific objectives were to examine the extent to which: 1) supplier development relates with innovativeness of fertilizer manufacturing firms in nigeria 2) supplier development relates with responsiveness of fertilizer manufacturing firms in nigeria the study hypothesized that supplier development does not significantly relate with: ho1: innovativeness of fertilizer manufacturing firms in nigeria ho2: responsiveness of fertilizer manufacturing firms in nigeria american journal of business management, economics and banking volume 27 august 2024 p a g e | 60 www.americanjournal.org fig 1. conceptual framework. literature review theoretical framework the investigation was grounded on the theory of the social exchange. the social exchange theory main premise is that it perceives socioeconomic life as a sequence of consecutive exchanges between two or more partners (cropanzano, anthony, daniels, & hall, 2017). the theory of social exchange is a perspective which combines sociology and psychology to explain how social stability and social change occur via the process of parties engaging in negotiations and exchanges. the social exchange hypothesis posits that all commercial transactions are likely to involve exchanges and interactions. the argument of the theory of social exchange is that individuals assess the total value of a certain connection by removing the expenses associated with it from the rewards it offers (scott, restubog, & zagenczyk, 2013). the theory of social exchange emphasises the crucial importance of trust and commitment, collaboration, satisfaction as well as the relational norms in shaping relationships. these factors, which develop organically over time, frequently play a more significant role in regulating relationships than relying exclusively on written contracts (cropanzano et al., 2017). the buyer's relationship with the supplier is effectively explained by the social exchange theory, which helps to foster mutually beneficial economic transactions through supplier development. empowerment is provided by the buyer to the supplier through the provision of financially enabled support, technically enabled assistance, and training of the supplier. in return, the supplier is expected to deliver product innovation, minimise the risk of supply shortages, reduce lead times, enhance the safety product, improve quality of the product, and offer prices that are competitive to the buyer. supplier development is the practice of enhancing performance and capabilities of suppliers by improving the overall quality as well as the supply chain efficiency. concept of supplier development supplier development is the actions performed by a purchasing firm to enhance the abilities and effectiveness of their suppliers, which subsequently affects the performance of the supply chain (yawar & seuring 2018; kumar, dalvi & kant 2018). supplier development refers to manufacturers' endeavours to enhance supplier performance by expanding their supplier base. the term "supplier development" was initially introduced by leenders (1966) as referenced in khuram, ilkka, elina, and shpend (2016). it refers to the collaborative efforts between a buying firm and a supplier that is aimed supplier development innovativeness responsiveness supply chain performance american journal of business management, economics and banking volume 27 august 2024 p a g e | 61 www.americanjournal.org at improving the capabilities and performance of the supplier, while also taking to account both the short-term and long-term needs of the buying firm (lopez, holmen & boer, 2012). from an organisational standpoint, the objectives of supplier development typically include cost reduction, enhanced quality and delivery times, establishment of new supply channels, introduction of new products to the market, and implementation of a systematic method to drive ongoing improvement. providing instruction and guidance to the supplier on the procedure (lukhoba & muturi, 2015). concept of supply chain performance supply chain performance in the extent to which companies gain advantages, such as cost efficiency from increasing sales volumes, enhancements to existing processes or the development of new processes, and improvement in profitability, as a result of their partnerships with other organisations (subramani, 2014). according to sundram et al. (2016) performance of the supply chain is the methodical evaluation of the effectiveness and efficiency of supply chain activities inside an organisation. supply chain performance is the degree to which the supply chain meets the end consumers' needs in terms of product availability, responsiveness, desired variety, capacity utilisation, and on-time delivery of products (patel & mcgaughey, 2004 as quoted in wachira et al., 2021). supplier-oriented operational performance refers to the manufacturer's perspective of how major suppliers provide quality, flexibility, and timely delivery of products. supply chain performance is a complex notion that encompasses various aspects such as main materials, basic components, subassemblies, and products. scholars do not agree on the most effective ways to measure supply chain performance (ibrahim & ogunyemi, 2012). supply chain performance measures are a method employed by supply chain managers and practitioners to evaluate and determine the effectiveness of the supply chain system. this is done by utilising a predefined set of performance metrics and indicators (elgazzar et al., 2019). the performance metrics refer to the basic criteria for measuring the performance of the supply chain, which are established and derived from the target goals and objectives. consequently, this study employed innovativeness and responsiveness as metrics to evaluate the supply chain performance. innovativeness: innovativeness is the ability of a company to generate and implement novel and unique ideas. it is a proactive quality that drives organisations to establish a systematic approach for transforming prospects into actual applications. innovativeness as a concept is crucial in enhancing both the quality and performance of a product or service. it is often used as an indicator of how unique and original an innovation is (dupeyras & maccallum, 2013; ade, akanbi & tubosun, 2017). it is a strategic capability of great relevance that may be utilised to achieve success in the ever-changing corporate environment. it suggests a willingness to accept and adapt to change, as well as a readiness to confront new difficulties (dupeyras & maccallum, 2013). responsiveness responsiveness of the supply chain is the ability of the supply chain to effectively and promptly respond to changes in its surrounding environment (bruque-camara, moyano-fuentes & maqueiramarin, 2016). responsiveness refers to a company's capacity to consistently and promptly meet client demands or adapt to changes in the market in order to maintain its competitive edge. the firm's american journal of business management, economics and banking volume 27 august 2024 p a g e | 62 www.americanjournal.org responsiveness can be demonstrated by its capacity to promptly meet customers’ requests to restocking inventory, as well as by an enhanced level of operational flexibility. bruque-camara et al. (2016) described the responsiveness of the supply chain as the capacity of organisations to effectively and promptly respond to both operational and strategic needs. supplier development and supply chain performance supplier involvement in supplier growth serves the purpose of meeting the buying firm's immediate and future needs. additionally, this participation is a form of investment that is tailored to enhance the supplier's competitive advantage or performance. in their study, gudda, keitany, and ombok (2023) investigated the moderating role of the link between supplier development and procurement performance among steel manufacturing enterprises in nairobi city county, kenya. a census was conducted on a population of 360 employees from ten steel businesses. findings of the study revealed that supplier development has a beneficial and substantial effect on procurement performance. the research conducted by mwangi and muli (2022) investigated the impact of supplier relationship management on the operational effectiveness of food and beverage manufacturing companies in kenya. the study utilised both census and purposive sampling methods to identify a total of 189 respondents. the study found that the management of supplier relationships has a beneficial effect on food and beverage manufacturing companies’ performance in kiambu county. the study of hassana and cross (2020) investigated how supplier development affects the operational performance of manufacturing enterprises in nigeria, focussing specifically on the dangote sugar refinery. the study employed the taro yamene formula to determine a sample size was 390. the analysis found that the competitive advantage of dangote refinery plc is statistically and significantly influenced by the development of suppliers. in their study, in the study of mwesigwa and nondi (2018), the impact of supplier development on world food programme procurement performance in kenya was examined. the study utilised a descriptive survey research design. the study revealed that implementation of supplier development has a notable and favourable effect on the world food programme (wfp) procurement performance in kenya. it was determined that the particular abilities possessed by suppliers have an impact on the ability of a buying agency to deliver high-quality items, as well as on their innovativeness, efficiency, and capacity. adedokun, onikola, and oke (2017) did a study to examine the influence of supplier development on organisational performance, with a specific focus on manufacturing enterprises located in ibadan, oyo state, nigeria. the study intentionally chose four manufacturing enterprises that are operating in the ibadan metropolitan. the sample size consisted of 120 respondents and was determined through the basic random sampling technique. the findings of the study indicated that supplier development has a substantial impact on manufacturing organisations operational performance. this impact is observed in terms of reduction in production costs, improvement of product quality, shortening of time to market, and enhancing operational flexibility. in their study, yegon, kosgei, and lagat (2015) examined how supplier development impacts the performance of sugar milling enterprises in the western area of kenya. the study utilised the purposive technique of sampling to establish a sample size of 88 senior purchasing and marketing executives. the study results demonstrated that the development of suppliers has a beneficial impact on the performance of buyers. however, there is a lack of research about the link between supplier development and the performance of fertilizer manufacturing enterprises supply chain in nigeria, despite the available data. american journal of business management, economics and banking volume 27 august 2024 p a g e | 63 www.americanjournal.org methodology this study employed the hypothesis testing or explanatory research design which is the quantitative phase to answer the interactions between the criterion and predictor variables of the problem under study. the relationship between supplier development and supply chain performance of fertilizer manufacturing firms in nigeria was investigated. the population for this study comprises the seven (7) fertilizer manufacturing companies operating in nigeria (international fertilizer development center, 2021; africa fertilizer, 2019). five respondents were drawn from each of the companies based on their portfolio as they possess understanding about the issues discussed in this study. the total respondents for the study were thirtyfive (35). the employed the primary source of data collection. the structured questionnaire was utilized as the data collection instrument (isreal, 2013). the questionnaires were preferred for the study because they enabled data to be collected with investigation ease. collated data were analyzed and presented using frequencies, tables, and the pearson product moment correlation (ppmc) was used for the purpose of examining the relationship between the predictor variables and the predicted variables. results univariate data analysis descriptive tools such as the mode, mean and standard deviation were emphasized in this section and utilized as a basis for providing evidence on dominant views or perceptions of the variables with regard to their manifestations within the context of the fertilizer manufacturing firms in nigeria. table 1 distribution for supplier development very low extent low extent moderate extent high extent very high extent total cou nt row n % cou nt row n % coun t row n % cou nt row n % count row n % count mode to what extent do we provide our suppliers with time information 5 14.3% 9 25.7% 0 0.0% 9 25.7% 12 34.3% 35 5.00 to what extent do we advance our suppliers with necessary training on what is expected of them 4 11.4% 4 11.4% 0 0.0% 17 48.6% 10 28.6% 35 4.00 to what extent do we equip our suppliers in line with our demands 6 17.1% 2 5.7% 0 0.0% 11 31.4% 16 45.7% 35 5.00 to what extent do we empower our suppliers to make necessary decisions 1 2.9% 5 14.3% 0 0.0% 12 34.3% 17 48.6% 35 5.00 to what extent do we collaborate with our suppliers on their functional needs 5 14.3% 11 31.4% 0 0.0% 8 22.9% 11 31.4% 35 2.00 source: research survey, 2024, american journal of business management, economics and banking volume 27 august 2024 p a g e | 64 www.americanjournal.org table 1 the distribution for supplier development is such that it is also observed to be mixed. the evidence provides a general position of the nature and form of interaction and relationship between the fertilizer manufacturing firms and their suppliers in the manufacturing industry in nigeria. table 2 distribution for innovativeness very low extent low extent moderate extent high extent very high extent total co un t row n % cou nt row n % cou nt row n % count row n % count row n % cou nt mode to what extent do we try out new ideas in the supply chain context and what frequency? 6 17.1% 17 48.6% 0 0.0% 5 14.3% 7 20.0% 35 2.00 what is the extent to which we seek out new ways to do things in our supply chain 6 17.1% 11 31.4% 0 0.0% 0 0.0% 18 51.4% 35 5.00 what is the extent to which we often introduce new ways of servicing the supply chain 7 20.0% 18 51.4% 1 2.9% 0 0.0% 9 25.7% 35 2.00 to what extent are we creative in the methods of operation in supply chain 2 5.7% 10 28.6% 0 0.0% 7 20.0% 16 45.7% 35 5.00 to what extent do we increasingly introduce new processes in the supply chain 2 5.7% 9 25.7% 0 0.0% 11 31.4% 13 37.1% 35 5.00 source: research survey, 2024 evidence on the distribution for innovativeness shows that responses and perceptions are mixed on the properties for the variable. the results indicate that whereas properties such as the frequency in which new ideas are tried out and the extent to which new ways of servicing supply chains are reflected. table 3 distribution for responsiveness very low extent low extent moderate extent high extent very high extent total count row n % count row n % count row n % count row n % cou nt row n % count mo de to what extent do we react to changes in the industry 6 17.1% 17 48.6% 0 0.0% 5 14.3% 7 20.0% 35 2.0 0 to what extent do we consider customers opinions on product and services provided 15 42.9% 6 17.1% 0 0.0% 0 0.0% 14 40.0% 35 1.0 0 american journal of business management, economics and banking volume 27 august 2024 p a g e | 65 www.americanjournal.org to what extent are we able to know changes in customers’ needs in a timely manner 10 28.6% 13 37.1% 0 0.0% 0 0.0% 12 34.3% 35 2.0 0 to what extent do we adopt customer change request 2 5.7% 11 31.4% 0 0.0% 7 20.0% 15 42.9% 35 5.0 0 to what extent are we able to reduce development lead time 4 11.4% 8 22.9% 0 0.0% 10 28.6% 13 37.1% 35 5.0 0 source: research survey, 2023 the distribution for responsiveness indicates that there is a high level of mixed views on the aspect of responsiveness of the firms. the evidence indicates that most of the respondents consider their firms as low on the aspect of reaction to changes in the industry (m = 2), consideration of customer opinions in product services (m = 1), and ability to know changes in customer needs on a timely manner (m = 2); however, with regards to items such as adoption of customer requests (m = 5), and ability to reduce development lead time (m = 5) are observed to have affirmative responses that are very high. bivariate data analysis hypotheses were stated at a 95% confidence interval – hence a 0.05 level of significance. tests were 2-tailed and as such non-directional – assessing both positive and negative relationships. table 4 result for relationship between supplier development and supply chain performance supplier development innovativeness responsiveness supplier development pearson correlation 1 .693** .637** sig. (2-tailed) .000 .000 n 35 35 35 n 35 35 35 innovativeness pearson correlation .693** 1 .801** sig. (2-tailed) .000 .000 n 35 35 35 responsiveness pearson correlation .637** .801** 1 sig. (2-tailed) .000 .000 n 35 35 35 source: research survey, 2024, the pearson correlation analysis in table 4 indicates a robust positive and statistically significant association between supplier development and innovativeness. this is supported by a correlation coefficient of 0.693 and a probability value of 0.00 (r= 0.693, n= 35, p= 0.000 <0.05). based on this outcome, the researcher rejected the null hypothesis, which asserts that supplier development does not significantly correlate with innovativeness in fertilizer manufacturing companies in nigeria. this suggests that there is a substantial correlation between supplier development and the level of innovativeness exhibited by fertilizer manufacturing companies in nigeria. american journal of business management, economics and banking volume 27 august 2024 p a g e | 66 www.americanjournal.org the pearson correlation analysis in table 4 shows a significant and positive relationship between supplier development and responsiveness. the correlation coefficient is 0.637, indicating a strong positive relationship. the probability value is 0.000, which is less than the critical value of 0.05 (r= 0.637, n= 35, p= 0.000 < 0.05). based on this outcome, the researcher has rejected the null hypothesis, which asserts that supplier development does not significantly relates correlate with responsiveness of fertilizer manufacturing companies in nigeria. this suggests that there is a substantial correlation between supplier development and the ability of fertilizer manufacturing companies in nigeria to respond effectively. discussion of the findings the statistical analyses performed in the study shows that supplier development and supply chain performance have positive and statistically significant relationship. the evidence identifies supplier development as a substantial predictor of the behavior and capacity of fertilizer manufacturing firms in nigeria, thus align with that of gudda et al., (2023) that outline supplier development to have a substantial influence on procurement performance; and that of mwangi and muli (2022) that supplier relationship management in terms of the development of suppliers positively impacts food and beverage manufacturing firms’ performance in kiambu county. the current findings of the study also validate the findings of hassana and cross (2020) who demonstrated that supplier development has a statistically significant effect on competitive advantage. the current findings also align with the findings of mwesigwa and nondi (2018) that supplier development have positive relationships with procurement performance; and that of adedokun et al., (2017) that supplier development equips and patterns the characteristics of the suppliers in line with the needs of the firm. the findings also support the reports that supplier development positively affects buyer performance (yegon et al., 2015). conclusion from the findings of this study as well as the findings of previous studies examined, this study concluded that, supplier development positively and significantly relates with performance of fertilizer manufacturing firms supply chain in nigeria. this indicates that supplier development as a whole enhances and deepens the nature of cooperation between the firm and its suppliers in terms of innovativeness and responsiveness. these actions to a considerable extent are largely essential and impact positively on supply chain performance of fertilizer manufacturing companies. therefore, it is recommended that with regards to supplier development initiatives by the management of the fertilizer manufacturing firms in nigeria, more work is required in line with educating and acquainting target partner suppliers with the essential knowledge about the firm business focus and its expectation. references 1. ade, l. p.k., akanbi, a.m., & tubosun, a.i. (2017). the influence of marketing intelligence on business competitive advantage: a study of diamond bank plc. journal of competitiveness, 9(1), 51-71. 2. adedokun, f. b., onikola, y. s. & oke, j. a. (2017). influence of supplier development on organization performance: an empirical investigation of manufacturing sector in oyo state, nigeria. international journal of economics and business management, 3(2), 29-37. american journal of business management, economics and banking volume 27 august 2024 p a g e | 67 www.americanjournal.org 3. africa fertilizer (2019). register of fertilizer manufacturing and processing facilities in subsaharan africa. retrievd 12th january, 2022 from www.africafertilizer.org 4. bruque-cámara, s., moyano-fuentes, j. & maqueira-marín, j.m. (2016). supply chain integration through community cloud: effects on operational performance, journal of purchasing and supply management, 22(2), 141-153. 5. chavhan, r. mahajan, s.k., & sarang, j. (2012). supplier development: theories and practices, journal of mechanical and civil engineering, 3, (3), 37-51 6. cropanzano, r., anthony, e. l., daniels, s. r. & hall, a. v. (2017), social exchange theory: a critical review with theoretical remedies, academy of management annals, 11 (1), 479-516. 7. dupeyras, a., & maccallum, n. (2013). indicators for measuring competitiveness in tourism: a guidance document, oecd tourism papers, 02, 1–62. 8. elgazzar, s., tipi, n., & jones, g. (2019). key characteristics for designing a supply chain performance measurement system. international journal of productivity and performance management, 68(2), 296-318 9. gudda, k., keitany, p. j., & ombok, m. (2023). supplier development, integration and procurement performance of steel manufacturing firms in kenya. international journal of financial, accounting and management, 5(1), 113-132. 10. hassana, s. n., cross, o. d. (2020). effect of supplier development on operational performance of manufacturing firms in nigeria. international journal of managerial studies and research, 8(6), 13-25. 11. ibrahim, s. e., & ogunyemi, o. (2012). the effect of linkages and information sharing on supply chain and export performance: an empirical study of egyptian textile manufacturers. journal of manufacturing technology management, 23(4), 441-463. 12. ifdc (2021). 2021 west africa fertilizer business information guide. retrieved 24th august, 2024 from https://ifdc.org. 13. israel, g. d. (2013). determining sample size, program evaluation and organizational development, ifas, university of florida. retrieved 14th may, 2023 from http//edis.ifas.ufl.edu/pd006. 14. khuram, s., ilkka, s., elina, s., & shpend, i. (2016). benchmarking supplier development: an empirical case study of validating a framework to improve buyer-supplier relationship. management and production engineering review. 7(1) 56–70. 15. kumar r, singh rk and shankar r (2016) study on collaboration and information sharing practices for scm in indian smes. international journal business information systems 22(4): 455-475. 16. lopez, p.k. holmen, e., & boer, l. (2012). how do supplier development programs affect suppliers? insights for suppliers, buyers and governments from an empirical study in mexico, business process. management journal, 18(4), 680-707. 17. lukhoba, e. j., & muturi, w. (2015). effect of supplier development on supplier performance: a study of food manufacturing companies in kisumu county. international journal of economics, commerce and management, 3(11). 18. munyimi, t.f. & chari, d.f. (2018), the role of buyer-supplier relationships in achieving economic sustainability in the private telecommunication sector in zimbabwe, cogent business and management, 5 (1), 1-11. american journal of business management, economics and banking volume 27 august 2024 p a g e | 68 www.americanjournal.org 19. mwangi, f.w., & muli, s. (2022). influence of supplier relationship management on the performance of food and beverage manufacturing firms in kenya: a survey of kiambu county. international journal of business and social research, 12(3), 13-30. 20. mwesigwa, f. m., & nondi, r. (2018). effects of supplier development on procurement performance of world food programme. the strategic journal of business and change management, 5 (2), 1184, 1205. 21. rajendra, c., mahajan, s. k., & joshi, s. (2012). supplier development: theories and practices. journal of mechanical and civil engineering. 3(3), 37-51. 22. scott, k. l., restubog, s. l. d., & zagenczyk, t. j. (2013). a social exchange-based model of the antecedents of workplace exclusion. journal of applied psychology, 98(1), 37–48. 23. subramani, m. (2014). how do suppliers benefit from information technology use in supply chain relationship? mis quarterly, 28, 4573 24. sundram, v. p. k., chandran, v. g. r., & bhatti, m. a. (2016). supply chain practices and performance. the indirect effects of supply chain integration. benchmarking: an international journal, 23(6), 1445-1471. 25. vanpoucke, e., vereecke, a., & boyer, k. (2014). triggers and patterns of integration initiatives in successful buyer-supplier relationships. journal of operations management, 32(1-2), 15-15. 26. wachira, k.m., mburu, d. k., & kiai, r. (2021). total quality management practices and supply chain performance among manufacturing and allied companies listed at nairobi securities exchange, kenya. european journal of business and management research, 7(1), 269-279 27. yawar, s. & seuring, s. (2018). the role of supplier development in managing social and societal issues in supply chains. journal of cleaner production, 182, (5), 227-237. 28. yegon, j., kosgei, d. k., & lagat, c. (2015). effect of supplier development on buyer performance: a survey of sugar milling firms in western region of kenya. european journal of logistics, purchasing and supply chain management, 5(3), 35-54. 29. zimmermann, f., & foerstl, k. (2014). a meta-analysis of the purchasing and supply management practice performance link. the journal of supply chain management 50(3), 37-54. american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 29 www.americanjournal.org the role of investment projects in the development of the economy of uzbekistan mamatov bahadir safaraliyevich dsc, professor of the institute «international school of finance technology and science» llc ganiev shakhriddin vakhidovich professor of tashkent state economical university a b s t r a c t k e y w o r d s the article reveals the essence, content and features of investment projects. the main elements and classification features of investment projects by content, objectives, scale, implementation time, industry focus and proposed financing scheme are analyzed. based on the conducted research, scientific conclusions were formulated and recommendations for the effective implementation of investment projects in uzbekistan were developed. investments, investment project, foreign investments, foreign direct investments, investment environment, flow of foreign investments, public-private partnerships, real investments, priority sectors, financing, fixed capital. introduction market reforms in the national economy have led to the need for a significant update of the forms and methods of investment management. with a significant reduction in centralized state capital investments in the sectors of the national economy and regions, enterprises’ own and borrowed funds and foreign investments are increasingly being used. in these conditions, the requirements for the economic justification of investments increase, taking into account the instability of the external environment, inflation, taxes, customs, transport, energy and other tariffs. new issues for specialists included developing business plans for investment projects, optimizing the management of financial flows and investment portfolios. an objective assessment of a wide range of capital investment risks is of great importance in investment planning. these circumstances increase the relevance of theoretical and practical development of investment project management. as the president of the republic of uzbekistan sh. mirziyoyev noted, «the economic development of our country largely depends on an active investment policy. based on this, we think there is no need to explain the competitiveness of our country and, most importantly, the radical growth of the population's well-being, the creation of new enterprises and industries, new jobs» [1]. investment projects play an indispensable role in stimulating and developing industry, being a reliable catalyst for economic growth and prosperity. they represent the financial fuel that allows enterprises to make technological leaps, improve production processes and expand their product range. american journal of business management, economics and banking volume 27 august 2024 p a g e | 30 www.americanjournal.org today, the main problem of investment policy for all regions is the search for sources of financing, although theoretically there are many potential options for attracting capital to regional investment projects. but it should be especially noted that only a few of the many projects at the present time can play a significant role in investment processes. analysis of literature on the topic the problems of attracting investment and implementing investment projects have been studied in the scientific works of leading foreign economists such as m.v. olshanskaya, n.n. kuzmina, d.a. bondareva, a.n. sorochaikin, a.z. dadashev, s.m. vdovin, l.a. beklaryan, s.v. sotsky, sh.i. mustafakulov, m.kh. nurmukhamidova, s.v. mamazhanova, a.kh. shoev, vakhabov a.v., o.sh. sabirov, d.g. ghozibekov, e.i. nosirov. «m.v. olshanskaya studied the issues of economic, organizational and managerial relations that mediate the processes of development and implementation of measures that ensure an increase in the investment attractiveness of territories» [2]. this work was carried out taking into account the peculiarities of the territories of the russian federation, also, the investment potential has been little studied, mainly, attention is paid to organizational and management problems. «n.n.kuzmina studied the issues of socio-economic development of the region, in this scientific dissertation the investment attractiveness of the region is studied as a subject of market competition, also, in the work the concepts, essence, basic elements, management system of tourist and economic facilities are analyzed» [3]. «d.a. bondareva, a.n. sorochaikin studied the issues of public-private partnership in the management of economic facilities of large cities taking into account urbanization, but they did not study the problems of individual territories» [4]. «a.z. dadashev studied the problems of improving the tax-budget mechanism for supporting investment processes in highly subsidized regions» [5]. «s.m. vdovin believes that investment attractiveness is a factor in the sustainable development of a region; the researcher believes that at present the contours of research in this area are shifting towards solving the problem of sustainable development in connection with the increasing shortage of resources and the deterioration of the environment» [6]. «l.a. beklaryan, s.v. sotsky studied the issues of investment activity taking into account regional investment and financial policy, while they argue that it is necessary to attract capital by dividing regions and investors into groups according to the level of their mutual attractiveness» [7]. in uzbekistan, similar issues were investigated by sh.i.mustafakulov [8], on the creation of necessary conditions for attracting foreign investment in the economy of the republic, «m.kh.nurmukhamidova, s.v.mamazhanova, a.kh.shoev [9] studied the problems of developing systems of measures for the economic development of regions, increasing the investment attractiveness indicator, vakhabov a.v» [10], o.sh.sabirov [11], d.g.ghozibekov, e.i.nosirov [12] conducted research on improving the conditions for improving the investment climate and attracting foreign investment. research methodology methods of grouping, comparative and economic analysis, induction and deduction, economic and statistical methods and expert assessment were widely used in the research. american journal of business management, economics and banking volume 27 august 2024 p a g e | 31 www.americanjournal.org analysis and results the term «project» can be understood in two senses: «as a set of documents containing the formulation of the goal of the upcoming activity and the definition of a set of actions aimed at achieving it; as a set of actions (works, services, acquisitions, management operations and decisions) aimed at achieving a formulated goal, that is, as documentation and as an activity» [13]. from the point of view of the systems approach, a project can be considered as a process of transition from the initial state to the final one – the result with the participation of a number of constraints and mechanisms (fig. 1). restrictions: ➢ financial; ➢ regulatory and legal; ➢ ethical; ➢ environment; ➢ logistics; ➢ activation methods; ➢ time; ➢ quality level; ➢ indirect effects. entrance: ➢ needs project exit: ➢ satisfied needs; security: ➢ people; ➢ knowledge and experience; ➢ tools and equipment; ➢ technology. figure №1. project as a process of transition of a system from the initial state to the final one [14] the concept of «project» unites various types of activities characterized by a number of features, the most common of which are the following: − focus on achieving specific goals and defined results; − coordinated execution of multiple, interrelated actions; − a limited duration in time, with a definite beginning and end. there are a number of definitions of the term «project», each of which has a right to exist, depending on the specific task facing the specialist. in its most general form, a project is «something that is conceived or planned, such as a large undertaking» (webster's dictionary). american journal of business management, economics and banking volume 27 august 2024 p a g e | 32 www.americanjournal.org the social significance (scale) of a project is determined by the impact of the results of its implementation on at least one of the (internal or external) markets: financial, products and services, labor, etc., as well as on the environmental and social situation. the concept of "investment project" has many meanings. on the one hand, an investment project is understood as a set of documents that formulate the goal of the planned activity and define the range (list) of actions aimed at achieving this goal. on the other hand, the concept of «investment project» is associated with these actions themselves (works, services, management decisions), united by a single goal. we will operate with the concept of an investment project in both meanings. any investment project is designed to justify the economic feasibility of capital investments, their volumes and timing. this justification must be reflected in the design documentation developed in accordance with special standards and regulations. in this case, practical actions related to the direct implementation of investments are described in the business plan. the essence of an investment project comes down to the implementation of an innovative idea and justification of the need for investment in an activity that, like any commercial project, should generate profit and be attractive for these investments. that is, firstly, the ideological and material investment attractiveness of the project must be visible and understandable, otherwise it will not be possible to agree on investments, and, secondly, it is necessary to immediately make sure that the project will bring sufficient profit. there are exceptions to this rule when it comes to non-commercial types of investment project implementation (social, environmental), although even there it is assumed that indirect profit will be obtained, for example, by improving the social conditions of workers. but in any case, both the contractor and the investor must clearly understand the algorithm for implementing the plan at each stage, the time frame, cost, and final result, for which the design and estimate documentation is created. in the literature, the understanding of what an investment project is depends on the amount of meaning invested in the concept. in a narrower sense, this is a standardized business plan an economic justification explaining to the investor the feasibility of making capital investments, indicating the volumes and timing. in a broader sense, the concept includes the entire program of activities that ensure effective capital investments with the resulting profit. when choosing a more relevant meaning, it should be taken into account that an investment project is, first and foremost, a project with the presence of characteristic project features: – time interval, – cost, – specific result, – scenario for the phased implementation of the plan. when raising funds from outside, all these project characteristics are retained, but they are supplemented by advertising activities aimed at the investor, sending out commercial offers, demonstrating the attractive characteristics of the project and other persuasive measures. all this, of course, is connected with the mandatory preparation of documentation, however, investment projects are not limited to a set of documents. their definition includes the entire range of activities carried out by the contractor according to the plan in the conditions of a limited resource base, which, among other things, is a motivating factor in attracting investments. in addition, projects are implemented not in an isolated environment, but in a given social and natural context, which, in turn, imposes certain restrictions and requires the introduction of differences in the implementation of american journal of business management, economics and banking volume 27 august 2024 p a g e | 33 www.americanjournal.org projects depending on the diversity of socio-ecological conditions. so from the above it follows that the concept and types of investment projects are closely interconnected. thus, an investment project is a justification of the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation, as well as a description of practical actions for implementing investments (business plan). for a more complete understanding of the essence of an investment project, it is necessary to consider the definition that is enshrined in the current legislation of the republic of uzbekistan. in accordance with the legislation of the republic of uzbekistan, an investment project is understood as «a set of interrelated activities aimed at implementing or attracting investments to obtain economic, social and other benefits» [15]. thus, an investment project is a complex set of activities aimed at creating new goods and services or reconstructing or modernizing existing production facilities in order to obtain economic benefits. this term also covers the resources, means, investments and results obtained to achieve the investment goal. an investment project is a set of interrelated activities that involves certain capital investments over a limited period of time with the aim of generating income in the future. at the same time, in a narrow sense, an investment project can be considered as a set of organizational and legal, calculation and financial and design and technological documents necessary for substantiating and carrying out the relevant work to achieve investment goals. an investment project involves setting goals, planning implementation, management and analysis. investment projects implemented by enterprises (firms) differ in: 1) content: investment projects are divided into enterprise expansion (development) projects and rehabilitation (rehabilitation) projects. development projects involve the implementation of measures aimed at increasing the quantity of manufactured products without changing the product range or changing the production program by developing new products. these results can be achieved through investments in factors of production. rehabilitation investments are very important for uzbekistan. they are reflected in the business plan for the financial recovery of the enterprise; 2) scale: projects are divided into global, large-scale, regional, industry, city scale and local. the scale of a project is determined not only by the volume of capital investment, but also by the impact on at least one of the markets (financial, material products and services, labor), as well as on the environmental and social situation; 3) duration: short-term projects (up to one year) are related to the development of new technological processes, equipment upgrades, etc. a comparison of existing definitions allows us to note that an investment project is a systemically limited and complete set of activities, documents and works, the financial result of which is profit (income), the tangible result of which is new or reconstructed fixed assets (complexes of objects), or the acquisition and use of financial instruments or intangible assets with subsequent receipt of income. this, firstly, clearly defines the goal (result) of the investment project and differentiates it into financial and material components; secondly, it combines the activities, documents and work performed (executed) within the framework of the investment project into a single, complete complex. investment projects can be combined into programs. an investment program is a set of investment projects or proposals with a specific target orientation. to understand the internal structure of an investment project, it is important to consider its key elements. any project, including an investment project, includes three basic elements: an idea or concept; means and ways of implementing the idea; and a result. the idea is actually what starts any project. it is based on the implementation of a specific idea, such as investing in the development of new sources of raw materials with the aim of making a american journal of business management, economics and banking volume 27 august 2024 p a g e | 34 www.americanjournal.org profit through their sale on the domestic or international market. implementation tools are specific instruments and mechanisms for implementing the idea of an investment project. for example, in order to develop new sources of raw materials, it is necessary to conduct geological exploration work, purchase the necessary equipment for resource extraction, select a group of workers with certain qualifications, etc. the goal is the desired result of investment activity, which is achieved within the period established for the project implementation. the result is the receipt of profit as a financial component of the goal and (or) the construction of a physical object as a material component of the overall result. in general, an investment project is characterized by the presence of the following features: a specific goal, certain changes, time constraints, uniqueness, novelty (may be relative), limited required resources, complexity, specific organization of the project. let us consider in more detail the types of investment projects depending on individual classification features (fig. 2). figure 2. classification of investment projects [16] classification features of investment projects by content by goals by scale by implementation time by industry focus according to the proposed financing scheme – development; – rehabilitation (sanitation). – ensuring an increase in the volume of production; – ensuring an expansion (updating) of the product range; – ensuring an increase in the quality of products; – global; – large-scale; – regional scale; – investment projects by industry and area of activity in accordance with their classifier. – short-term; – medium-term; – financed by internal sources; – financed by corporatization (primary or additional issue of shares); – financed by credit; – with mixed forms of financing. american journal of business management, economics and banking volume 27 august 2024 p a g e | 35 www.americanjournal.org 1. according to the content or functional focus, investment projects for expansion (development) of an enterprise and rehabilitation (rehabilitation) projects are distinguished. development projects are aimed at increasing the volume of manufactured products without changing the product range or introducing new types of products taking into account the requirements of the market situation. rehabilitation projects are aimed at restoring production and financial recovery of the enterprise. 2. according to investment objectives, investment projects are distinguished that ensure an increase in the volume of production; expansion (diversification) of the range of manufactured products; improvement of product quality; reduction of production costs. 3. by scale, investment projects are divided into global, large-scale, regional, sectoral, city-scale, and local projects. the scale of an investment project is determined by the impact of its implementation results on the economic, social, and environmental situation in the domestic or foreign market. «global projects are interstate in nature, are highly capital-intensive and require the participation of a number of countries in their implementation. an example of such a project is the construction of a tunnel under the english channel in 1987-1994, which connected the cities of london, paris and brussels by direct road and rail communication» [17]. large-scale projects significantly affect the economic, social, and environmental situation in a particular state. they are highly expensive and affect the interests of the country as a whole (for example, the construction of a port in ust-luga). projects of regional (for example, the creation of local free zones), industry (development of cellular communications), city (development of paid parking) and local scale (modernization of a brick factory) are implemented respectively within the framework of a region, industry, city, specific territory or enterprise and their influence is limited by these frameworks. 4. according to the implementation period, there are short-term (up to one year), medium-term (from one year to three years) and long-term investment projects (with an implementation period of over three years). short-term projects are usually associated with the fairly rapid development of new technological processes, with the renewal of equipment, etc. long-term projects cover various scientific and technical developments and their development. 5. by industry affiliation, investment projects can be identified that are implemented in the fuel and energy complex, transport and communications, construction industry, light, food, medical industries, etc. industry investment projects can have an inter-industry focus (for example, projects to form industry clusters aimed at the effective integration of producers and consumers from different sectors of the economy). 6. according to the proposed financing scheme, investment projects are differentiated into projects financed from internal sources of the enterprise (for example, from net profit); projects financed through corporatization (primary or additional issue of shares); projects financed from credit resources; projects with mixed forms of financing. classification of projects allows for a fairly clear ranking of promising and implemented projects, and as a result, setting achievable goals, setting realistic deadlines for achieving goals, and attracting the optimal resources needed for their successful implementation. according to the decree of the president of the republic of uzbekistan “on the state program for the implementation of the strategy «uzbekistan – 2030» in the «year of support for youth and business», the central asian country intends to implement ambitious plans for economic development. «thus, it is planned to launch 309 investment projects, the total cost of which will amount to an impressive $18 american journal of business management, economics and banking volume 27 august 2024 p a g e | 36 www.americanjournal.org billion. the key points of the program include expected economic growth at 6%, as well as keeping inflation below 9%. to stimulate the economy, it is planned to allocate 275 trillion soums, of which 41 trillion soums will be directed to the development of microfinance services. last year, the country successfully attracted $2.8 billion in credit funds. the largest share of investments came from the asian development bank ($615.6 million). investment activity in uzbekistan in 2023 showed growth of 22.1%. the growth of foreign direct investment (fdi) and loans to the economy of uzbekistan by 58.9% last year became an important indicator of uzbekistan's attractiveness for foreign investors and financial institutions» [18]. thus, the indisputable fact is that the progressive development of the country's economy in the conditions of market relations cannot do without investment, the instrument for the implementation of which is an investment project. conclusion government measures to develop the economy and attract investment signal uzbekistan’s desire to become a key player in the region and ensure stable economic growth in the long term. it is important to note that successful attraction and effective use of investment in industry requires the development of strategies that ensure transparency, stability and protection of investors’ rights. uzbekistan is actively working to improve the investment climate to attract more capital and support its industrial sector. the most important conclusion from all of the above is that the investment sphere is a zone of social development. it is obvious that each investor, investing their funds in an investment project, wants to receive a certain benefit, especially for private investors. it should be noted that the benefit may also vary: for the state, the benefit may consist of social and environmental efficiency, etc., for a private investor a businessman, the benefit consists of receiving a stable profit. the life cycle of an investment project is the initial concept for studying the problems of financing the work on the project and making the corresponding decisions. it is obvious that an investment project will be viable only if it is effective. 1. planning and preparation stage: – clearly defining the project’s goals and objectives; – conducting an in-depth analysis of the market and competitors; – developing a detailed business plan: description of the project, its goals and objectives; analysis of the market, competitors and potential risks; description of the project team and its competencies; financial model of the project with calculations of income, expenses and performance indicators; marketing and promotion plan for the project; risk management and problem solving plan; – obtaining the necessary permits and licenses; – collecting the necessary resources: what resources (financial, human, material) are needed to implement the project, and develop a plan for attracting them; – forming a project team. 2. project implementation stage: clear planning of project stages; effective risk management; adherence to budget and project deadlines; american journal of business management, economics and banking volume 27 august 2024 p a g e | 37 www.americanjournal.org effective communication; flexibility and adaptation to changes; use of modern technologies. 3. project completion stage: conducting an assessment of the project's effectiveness; preparing documentation; closing the project. it is important to remember that effective implementation of an investment project requires a comprehensive approach, clear planning, effective management, flexibility and adaptation to changes. references 1. speech by the president of the republic of uzbekistan shavkat mirziyoyev at a meeting dedicated to the activities of the ministry of foreign affairs and embassies of our country in foreign countries https://president.uz/oz/lists/view/1423. 2. gazibekov d.g., nosirov e.i. attracting foreign investment in the economy of uzbekistan. brochure. – t.: economy and finance, 2007. – 92 p. 3. bondareva d.a., sorochaikin a.n. public-private partnership in the management of city economic facilities // economy and management in the 21st century – volume 3: fundamentals of the economy of a large city / edited by a.n. sorochaikin. – samara: glagoli publishing house, 2013. – 176 p. 4. lee k.y. from third world to first: the singapore story 1965-2000. sinpapore: singapore press holdings, 2000. 5. beklaryan l.a., sotsky s.v. investment activity taking into account regional investment and financial policy. division of regions and investors into groups according to their level of mutual attractiveness. 6. aseeva m.a. formation of investment attractiveness of the region in the conditions of innovative economy: on the example of stavropol krai. abstract of the candidate of economic sciences. – m.: 2008, 42 p. 7. guskova t.n. methodology of statistical research of investment attractiveness of objects: abstract of cand. sci. (econ.) dissertation. rostov-on-don: 2014. – p. 9. 8. vakhabov a.v., khazhibakiev sh.kh., muminov n.g. foreign investments. study guide. – t.: «finances», 2010. – p. 153. 9. vdovin s.m. investment attractiveness as a factor in sustainable development of a region // economic analysis: theory and practice. 2014. no. 41 (392). url: https://cyberleninka.ru/article/n/investitsionnaya-privlekatelnost-kak-faktor-stoychivogorazvitiya-regiona (date of access: 14.06.2021); 10. abykaev n.a., bocharov v.v. regional management. foreign experience. m., 2012. – p. 71. 11. grigoriev l. investment process: accumulated problems and interests// economic issues. 2011. no. 4. – p. 12-18. 12. bakitzhan a., filin s. investment attractiveness of the region: methodological approaches and assessment // investments in russia. 2012. no. 5. p. 11-15. 13. https://studme.org/47819/finansy/investitsionnyy_proekt_ponyatie_struktura_etapy_realizatsii. american journal of business management, economics and banking volume 27 august 2024 p a g e | 38 www.americanjournal.org 14. mazur i.i., shapiro v.d., olderogge n.g. project management: a textbook. – 2nd ed. – m.: “omega-l”, 2004. – p. 13. 15. law of the republic of uzbekistan «on investments and investment activities» dated december 25, 2019, no. zru-598. 16. chernyak v.z. investment project management: textbook for universities. – m.: unity-dana, 2012. 351 p. 17. https://bstudy.net/748178/ekonomika/investitsionnyy_proekt_struktura_zhiznennyy_tsikl_upravl enie_realizatsiey_investitsionnyh_proektov. 18. about the state program for the implementation of the «uzbekistan-2030» strategy in the «year of supporting youth and business» (gov.uz). american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 125 www.americanjournal.org prospects for improving internal audit and financial control over labor and payment in higher education institutions rustamova, shokhida tulkunovna independent researcher, tashkent state university of economics e-mail: rustamova_sh_t@mail.ru orcid: 0009-0002-9373-4961 a b s t r a c t k e y w o r d s this article is devoted to the prospects for improving internal audit and financial control over labor and remuneration in higher educational institutions. the article analyzes the importance of internal audit and financial control in regulating labor relations, paying wages and maintaining accounting records in higher educational institutions. particular attention is paid to issues such as the effectiveness of the financial control system, preventing errors in the payment of wages, and protecting the rights of employees. wages, budget funds, bonus, auditor, efficiency, labor law, reporting system, planning, financing. introduction professors and teachers of higher education institutions are the main element of higher education, and the quality of training of specialists and the efficiency of economic processes depend on their qualifications, pedagogical skills, working and living conditions, human and moral qualities, general culture. in higher education institutions, employees are hired on the basis of a contract and they are paid wages in a differentiated manner. the procedure for labor and its payment is carried out on the basis of established norms. the implementation of these norms is monitored. higher educational institutions are budgetary organizations, therefore, their labor costs are planned and financed on the basis of estimates. at the same time, taking into account the financial independence granted to some higher educational institutions, the procedure for payment for labor may change depending on their individual powers. the resolution of the president of the republic of uzbekistan "on measures to grant financial independence to state higher educational institutions" of december 24, 2021, granted state higher educational institutions granted financial independence the authority to make independent decisions on the following issues from january 1, 2022 [1]: – involving local and foreign professors and specialists on a contractual basis who can apply modern pedagogical technologies and conduct scientific research in the educational process; making decisions on determining the amount of remuneration for the work of foreign highly qualified american journal of business management, economics and banking volume 32 january 2025 p a g e | 126 www.americanjournal.org specialists involved in educational and scientific processes based on market conditions. in modern conditions, it is impossible to properly organize wages in a higher education institution without labor standardization, which would allow establishing a balance between the amount of labor input and the amount of payment for it. literature review a number of foreign scholars have conducted scientific research to study and improve the theoretical and methodological foundations of internal audit and financial control over labor and remuneration in higher educational institutions . in particular, n.p. kondrakov [2], o.v. mitina [3], t.s. maslova, t.a. poleshchuk [4], a.a. ushakov [5] can be mentioned. a.s. bakaybaeva [6], a.k. ibragimov [7], k.sh. ibragimov [8], s.u. mekhmonov [9], m. ostanakulov [10], i.n. in the scientific works of koziev [11], sh.v. g'aniev [12], budget accounting in budget organizations, budget reporting, accounting of extra-budgetary funds of budget organizations and audit, internal audit and financial control in budget organizations, theoretical issues of budget control and directions of their development were studied. it should be noted that the scientific works of the above economists do not focus on the study of theoretical and practical problems of improving payroll accounting and control in higher education institutions as a separate object of research. at the same time, changes in regulatory documents related to the reform of the higher education system create the need for scientific research in this area. analysis and results over the past decade, significant changes have occurred in the methods and means of transmitting knowledge, and therefore the content of educational work has also changed. the features and changes in educational work were taken into account by the author when designing an optimal system of motivating the work of university professors and teachers. in particular, the implementation and improvement of the procedure for paying bonuses, incentives, awards and kpi bonuses to professors and teachers in addition to their basic salary have found their place in every higher educational institution today. also, since pedagogical work is of high social importance, it is necessary not only to make high demands on the level of important professional qualities of the professor-teacher, but also to evaluate the results of his activity accordingly. an optimal system of material incentives for professors of higher education institutions would be appropriate to divide the salary into three components. payroll control by dividing it into three components simplifies the process and clarifies the results of the internal audit activity. a tiered approach to determining the amount of compensation for labor is the most effective method for paying and controlling employees' wages (figure 1). american journal of business management, economics and banking volume 32 january 2025 p a g e | 127 www.americanjournal.org figure 1. separation of wages into three components in the development of an optimal system of material incentives in higher education institutions moreover, such work should be carried out at the levels of subordination at the level of the management of the chief budget manager, at the level of heads of departments and at the level of ordinary employees of the departments of the chief budget manager. as a result, for each significant budget risk, measures are determined to eliminate the causes of its occurrence. such measures include: • explanation of regulations on the implementation of individual procedures; • clarification of control measures in relation to procedures carried out within the framework of financial management; • implementation of organizational and staff work; • improving the skills of employees who carry out transactions (procedures, actions) that involve risks that need to be minimized; • redistribution of tasks within the structural unit related to risks whose activities should be minimized; • purchase and launch of equipment, automation equipment, software and other tangible and intangible assets necessary to minimize risk; • organize and monitor changes in budget legislation in order to provide responsible officials with the complete information necessary for the proper conduct of operations in a timely manner; • other measures, the implementation of which may lead to minimization of risks. it is appropriate to carry out the internal audit of the transactions in higher education institutions on the basis of the following stages ( figure 2 ). the first component fees are paid for the performance of official duties. everyone who performs similar functions in the university receives the same fee for doing so the second component the second part of the salary is determined by factors such as length of service and standard of living. all university employees receive this component of their salary, but it varies for different categories and its amount is regulated annually. the third component the employee is paid based on the results achieved in the previous period american journal of business management, economics and banking volume 32 january 2025 p a g e | 128 www.americanjournal.org figure 1. the procedure for conducting internal audits of salary transactions in higher education institutions it is effective to use the following audit methods in the processes of internal audit of labor transactions by the audit team in collecting audit evidence and forming the necessary proposals and recommendations: auditing selection method study of the documents of the institution's activity in a certain period in accordance with the content of the studied internal audit issues; figure 3. transactions on wages internal audit methodology figure 3. transactions on wages internal audit methodology creating an internal audit annual work plan preparation of the program of the internal audit of labor transactions implementation of internal audit measures of labor transactions preparation of the report of the internal audit of labor transactions overseeing the elimination of errors and inconsistencies indicated in the internal audit report 1 2 3 4 5 internal audit procedures for salary transactions checking compliance with applicable legal requirements checking the correct reflection of salary transactions in accounting checking the correct calculation of the cit from the salary checking the procedure for deductions and withholdings from wages checking the correct formation of accounting and tax reporting indicators check account system elements checking the correct formalization of frame documents checking the correct formalization of the first documents of accounting checking the correct calculation of income and rate for the purpose of calculating jshds verifying the correct calculation of the amount of deductions and withholdings from wages in accounting documents checking that the original documents correspond to the indicators of the accounting report and tax payments to the tax report signs of strengthening internal controls non-availability of documents and props payment documents, presence of errors in the account the presence of errors in the calculation of the average salary lack of timely fulfillment of obligations for the payment of labor american journal of business management, economics and banking volume 32 january 2025 p a g e | 129 www.americanjournal.org the general study method is to study all the documents related to the activity of the institution for a certain period of time (fig. 3). in internal audit processes, the audit team should make sure of the completeness of the information and documents related to the issue under investigation before applying the inspection methods and procedures. cases of violations of the law determined by the audit methods and actions used and the actions of their occurrence are analyzed. conclusion the effectiveness of internal audit and financial control measures for wages in higher education institutions depends on the familiarity of employees working in this area with the activities of the audit or control object and the knowledge and skills related to wages in the higher education system. at the same time, the correct assignment of tasks for internal audit and financial control employees for wages audits and the systematic planning of audit measures are important in achieving the intended goal. today, granting financial independence to higher education institutions, developing performance indicators for teaching staff, and constantly encouraging productive scientific research work provide some freedom from remuneration, while at the same time requiring direct disclosure of these circumstances in the formation of reports on the activities of the internal auditor and financial control service regarding the transparency and reliability of accounting data. internal audit and financial control activities on wages in higher education institutions, it is necessary for the employees working in this direction to be independent from the head of the operating organization (employer). also, in order to study the fairness of bonuses and incentives assigned to employees, the pedagogue should have the authority to directly study the relevant primary documents and freely use the accounting information system. references 1. resolution of the president of the republic of uzbekistan dated december 24, 2021 "on measures to provide financial independence to state higher educational institutions." 2. bakaybayeva a.s. ways to improve budget accounting and financial control in the republic of uzbekistan . econ. sci. phil. doc. diss. abstract. – t.: 2020. –52 p.; 3. ibragimov k.sh. improvement of accounting and financial reporting in budget organizations (in the case of higher education institutions). iqt. science. div. doc. dis. abstract. t., 2018. 54 p.; 4. mehmonov s.u. accounting in budget organizations : theory and practice. monograph. –t.: “economics and finance”, 2016.; 5. ostonakulov m. “ accounting in budget organizations”. textbook. –tashkent, yangi asr avlod, 2008. 480 p. 237 p.; ostonokulov a.a. “improving the methodology of accounting and reporting on extra-budgetary funds of budget organizations”. doctor of philosophy. dissertation. abstract. –t.: “davr matbuot savdo”, 2021. 72 p.; 6. koziev i.n. "improving the methodology of compiling and summarizing the audit report in the conditions of modernization of the economy". iqt. science. doc. dis. abstract. t., 2017. 70 p.; 7. ganiev sh.v. "improvement of accounting and financial control in budget organizations" (as an example of the educational system). iqt. science. name dis. abstract. t.: uz r bma, 2008. 28 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 34 www.americanjournal.org analysis of dividend policy and interest rate policy of commercial banks on bonds ubaydullayev dilshod zubaytovich tashkent state university of economics researcher e-mail: dzubaydullayev@gmail.com orcid: 0009-0005-5731-6895 a b s t r a c t k e y w o r d s the article examines the meaning and significance of the concept of "analysis of the dividend policy of commercial banks and interest rate policy on bonds", the level of profitability and liquidity when attracting financial resources from the capital market through securities, the level of profitability. on preferred shares, the profitability of corporate bonds, the practice of paying dividends in the case of ipotekabank otp is implemented. dividend policy, capital market, securities, investments, financial resources, portfolio investments, stock market, capital market, financial resources, shares and bonds, economic growth, monetary policy, financial intermediation, liquidity level. introduction today, in world practice, it should be noted that commercial banks actively participate in the stock market both as issuers and investors. in our national practice, in most cases, banks participate in the stock market as issuers. today, there are 33 commercial banks operating in our republic, and it should be noted that the shares of 17 of them are listed on the tashkent republican stock exchange. also, only four bank shares are classified in the standard category. 13 commercial bank shares are classified in the transit category and are traded on the stock exchange. profitability and liquidity are the first issues of interest to investors when commercial banks raise financial resources from the capital market through securities. in this case, the requirement for profitability is expressed as follows. literature review currently, the analysis of the dividend policy of commercial banks and interest policy on bonds, the issue of increasing their activity is one of the issues in the attention of researchers and economists at the national and international level. this is to some extent caused by the multifaceted participation of commercial banks in the securities market. that is, banks are trying to increase activity in the stock market, diversify the composition of financial resources and income by attracting capital through the issuance of securities, investing in securities, placing securities of other issuers on the basis of mediation. therefore, there are commonalities and specific differences in the views of researchers in this regard. american journal of business management, economics and banking volume 31 december 2024 p a g e | 35 www.americanjournal.org i.r. baibekov conducted research on the formation of bond portfolios through the activities of commercial banks in the stock market. the main attention is paid to the methodology for qualitatively assessing bond issuers in terms of diversifying the bond portfolio from the point of view of diversifying bank income[1]. commercial banks in the united states may raise capital by placing their stocks, bonds, and certificates of deposit on the stock market, and “invest their funds in the securities market primarily in federal, state, or local bonds.”[2] this can be explained by the fact that, due to the great depression of 19291933, commercial banks were prohibited from investing in high-risk securities. “banks are prohibited from owning high-risk securities such as stocks or corporate bonds. there are no restrictions on the purchase of treasury securities due to their low risk and high liquidity.”[3] in the united states, commercial banks are also not allowed to engage in financial intermediation activities related to securities. it is also clear from the above that certain limits can be set on the banks’ access to the stock market. n.m. giblova studied the interaction between the stock market, commercial banks and the real sector of the economy. in it, the researcher shows the real sector of the economy the issuer of securities as a consumer of investment resources, the stock primary market a channel that provides income for the purpose of financing investments, and banks as investors who buy securities [4]. as we can see, the researcher mainly focused on the role of commercial banks as investors. a group of scientists led by o.i. lavrushin has comprehensively studied the types of banking activities in the securities market within the framework of commercial banks' operations with securities, the issuance and placement of banks' own securities, commercial banks' investments in securities, banking operations in servicing government securities and repo transactions, and the activities of banks as professional participants in the securities market[5]. in this regard, the intermediary activities of commercial banks in the stock market have been ignored. analysis and results based on the data in the figure below, we can note that the yield of government securities serves as a target for investors. because government securities are treated as risk-free assets. in turn, the risk premium for other financial assets should be paid to investors. figure 1. investors' demand for profitability in the financial market1 1 compiled by the author. return on common stock return on preferred shares yield on corporate bonds yield on bank deposits and deposits yield on government securities american journal of business management, economics and banking volume 31 december 2024 p a g e | 36 www.americanjournal.org the yield on corporate bonds, in turn, is expected to yield higher returns than government securities and bank deposits. otherwise, the investor will not direct his investment to the corporate bond. the yield on preferred shares is usually fixed in the charter of the issuer and tends to be higher than that of corporate bonds. and common stock is a high-risk asset in the financial market. therefore, their yield should be higher than that of corporate bonds. otherwise, interest in shares of commercial banks, like any issuer, will be low, and as a result, the issue of liquidity of shares will remain extremely low. during the analyzed period, the dividend level on ordinary shares is significantly lower than even deposit and savings interest. in such conditions, it is natural that interest in uzsanoatskrilishbank jscb shares will drop sharply, and existing minority shareholders will also seek to get rid of their shares as soon as possible. it should also be noted that in the absence of guaranteed profitability, the loss will primarily fall on the minority investor, and their interests will not be ensured. as of the end of 2019, 50.1 percent of net profit was directed to dividends. as of the end of 2020, this amount is zero. as the share of preferred shares in the authorized capital decreases, the amount of preferred shares dividends in the distribution of net profit also has a downward trend. the payment of partial dividends by the issuer and the allocation of part of the profit to the authorized capital by increasing capitalization does not have a positive effect on the liquidity of the shares of commercial banks, as does any issuer. on the contrary, the allocation of a large part of the profit to dividends serves as an advertisement for the issuer's shares and contributes to the increase in the share price and the success of any subsequent securities issues. therefore, we believe that in the future, each issuer should pay attention to this aspect. the bank also does not pay quarterly or semi-annual dividends, a problem that can be encountered in other state-owned commercial banks. if we pay attention to the practice of dividends in the example of ipotekabank atib, this bank also has aspects similar to the dividend practices of uzsanoatkurilishbank atb. first of all, the low level of dividend on ordinary shares attracts our attention. an analysis of ipotekabank jscib dividend payments shows that the level of dividends on ordinary shares in this bank is significantly lower than the market yield. in particular, while a relatively higher dividend was paid for the 2007-2012 fiscal years, dividends of 8, 6, and 8 kopecks were paid for 1 soum of stock for the 2016-2021 fiscal years. the dividend on preferred shares is relatively high. for the last three fiscal years, preferred shareholders have been paid 25 percent of their earnings, which is a dividend. for the fiscal years 2007-2012, this figure was 40 percent. table 1 analysis of dividend payments of ipotekabank atib2 year of payment by yearend ordinary shares (in sums per share) preferential shares (in sums per share) nominal value (sum) in the form of money capitalization in the form of in the form of money capitalization in the form of 2007 2008 200,00 400,00 1 000,00 2008 2009 400,00 1 000,00 2009 2010 130,00 400,00 1 000,00 2010 2011 150,00 400,00 1 000,00 2011 2012 150,00 250,00 1 000,00 2 https://ipotekabank.uz/investors/dividends/ information on the site of the mortgage bank atib https://ipotekabank.uz/investors/dividends/ american journal of business management, economics and banking volume 31 december 2024 p a g e | 37 www.americanjournal.org year of payment by yearend ordinary shares (in sums per share) preferential shares (in sums per share) nominal value (sum) in the form of money capitalization in the form of in the form of money capitalization in the form of 2012 2013 40,00 360,00 250,00 360,00 1 000,00 2013 2014 68,00 340,00 317,50 340,00 1 360,00 2014 2015 85,00 450,00 403,75 450,00 1 700,00 2015 2016 672,00 509,40 672,00 2 150,00 2016 2017 756,00 705,50 756,00 2 822,00 2017 2018 54,00 448 894,50 448 3 578,00 2018 2019 0,08 0,25 1,00 2019 2020 0,06 0,25 1,00 2020 2021 0,08 0,25 1,00 2021 2022 0,25 1,00 2022 2023 0,25 1,00 the bank also applied dividend payment practices by increasing capitalization in 2011-2016 based on the results of 2010-2015. in this case, the bank increased capitalization by increasing the nominal value of shares and issuing additional shares. based on the results of 2019-2023, no dividends were paid on ordinary shares at all, and a dividend of 25 percent was paid on preferred shares. conclusion it is also necessary to pay attention to the issue of the number of shares issued by commercial banks of our country and their nominal value. that is, if we pay attention to the nominal value of shares of listed commercial banks, we can see that, in addition to shares of 1,000 soums, 1,700 soums, and 5,000 soums, commercial banks issued shares of 1 soum, 5 soums, 10 soums, and 19 soums. such a small nominal value, in turn, led to a sharp increase in the number of shares. the high number of shares due to the low nominal value complicates the organization of general meetings of shareholders and the activities of the counting commission in any joint-stock companies, including banks. in addition, it also creates inconvenience in offering shares to foreign investors in foreign currency. the complexity of the situation is clearly demonstrated by the idea of providing information to a foreign investor about the amount of dividends paid on a share of one soum. we can see that these aspects were not taken into account when determining the nominal value of shares of commercial banks. in the course of their activities, commercial banks participate in the stock market through the issuance and placement of corporate bonds in order to attract financial resources. also, in our country, while there are certain restrictions on the participation of commercial banks as investors in the stock market, there are no restrictions on their activities as investors in the bond market. in this case, it is advisable to pay serious attention to the practice of diversification only in relation to the bond portfolio. profitability and liquidity are the first issues in the attention of investors when commercial banks attract financial resources from the capital market through securities. the yield on government securities serves as a benchmark for investors. because government securities are treated as risk-free assets. in turn, the risk premium for other financial assets should be paid to investors. american journal of business management, economics and banking volume 31 december 2024 p a g e | 38 www.americanjournal.org the payment of partial dividends by the issuer and the allocation of part of the profit to the authorized capital by increasing capitalization does not have a positive effect on the liquidity of the shares of commercial banks, as does any issuer. on the contrary, the allocation of a large part of the profit to dividends serves as an advertisement for the issuer's shares and contributes to the increase in the share price and the success of any subsequent securities issues. therefore, we believe that in the future, each issuer should pay attention to this aspect. references 1. s. elmirzaev and others. financial market. / textbook, t.: "economics-finance", 2019. b. 10. (324 p.) 2. sh.n.sultonov. ways to develop the stock market in uzbekistan: abstract of the dissertation for the degree of doctor of philosophy (phd) in economics. – tashkent, 2020. – 12 p. 3. giblova n.m. tendentsii i perspektiv razvitiya investitsionnykh operatsiyonkh kommercheskikh bankov na fundovom rynke rossii. autoreferat dissertatsii na soiskanie uchenoy stepi candida ekonomicheskikh nauk. moscow, 2013. 26 p. 4. banking. textbook / ed. o.i. lavrushin. 13th ed. m .: knorus, 2020 .-p. 477-498; 514-522. (632 p.) 5. baibekov i.r. formation of bond portfolios by commercial banks on the russian stock market. abstract of the dissertation for the degree of candidate of economic sciences. – saratov, 2015. – 29 p. 6. frederic s. mishkin. the economics of money, banking, and financial markets, 11th edition. pearson, 2016. – p. 235.(745 p). 7. frederic s. mishkin and stanley g. eakins. financial markets and institutions. global edition. pearson, 2018. – p. 290. (706 p). 8. abdullaeva sh.z. banking textbook. t.: economy-finance, 2017. 528 p 9. ataniyazova m. scientific and theoretical views on the innovative activities of commercial banks and their authorship // scientific electronic journal of economics and innovative technologies. – 2015. – issue 1. – 5 p. 10. shadieva d.h. problems and solutions of developing innovative services in the banking system of new uzbekistan // science and innovations as a factor of development in new uzbekistan: collection of materials of the republican scientific and practical conference of higher education institutions. – tashkent, 2023. – p. 53-57. 11. khodzhimamedov a.a. directions of innovative development of the banking system // scientific electronic journal "economy and innovative technologies". – 2022. – no. 4. – pp. 1-9. american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 7 www.americanjournal.org the socio-economic importance of providing the population with permanent jobs nurali saidov tdiu senior teacher a b s t r a c t k e y w o r d s this article highlights the importance and necessity of creating permanent jobs based on the analysis of the number of registered, active, inactive, terminated and newly established enterprises and organizations, as well as the analysis of employed and unemployed people in the economy. employment, jobs, unemployment introduction the problem of ensuring the employment of the population is one of the most important features of the socio-economic development of the society and is of particular importance in the economy. president of the republic of uzbekistan sh. m. mirziyoyev's decree no. pf-4947 approved on february 7, 2017 "on the strategy of actions for further development of the republic of uzbekistan" was adopted. the strategy of actions on five priority directions of the development of the republic of uzbekistan in 2017-2021, developed on the basis of this decree, is a document that determines our socio-economic, legal and political development in the next five years. part 4 of it, entitled "priority directions of social sector development", paragraph 4.1, defines the consistent increase of employment and real income of the population in the next five years, and for this purpose: "... creation of new jobs" is defined as an important priority direction. despite the fact that a number of measures are being implemented to ensure the employment of the population, especially the rural population, the level of unemployment remains high in rural areas. the main reasons for this: the number of stable enterprises and organizations in rural areas is small; seasonality and non-permanence of jobs lack of permanent jobs; completion of newly established enterprises and organizations in a short period of time; failure of active enterprises; poor orientation of investment projects to rural areas. three-fourths of the jobs in our republic are created on the basis of the development of small business and private entrepreneurship, i.e. homesteading, individual entrepreneurship and self-employment. in this case, the share of the number of permanent jobs is decreasing. american journal of business management, economics and banking volume 25 june 2024 p a g e | 8 www.americanjournal.org job retention depends on sustainable businesses and has a major impact on gdp growth. based on the structural changes in the economy, investments in sectors and industries with a stable profitability level are the basis for the creation of a stable enterprise and permanent jobs. seasonal and informal employment of the population, especially rural residents, does not guarantee temporary income, permanent employment, decent working conditions, seniority and career. therefore, it is urgent to create permanent jobs for unemployed youth and women, migrant workers and those employed in the informal sector. permanent jobs are one of the effective solutions to this problem. research methodology to achieve this goal, statistical data collection and comparison methods were used, and analysis methods were used to summarize and justify the obtained results. these methods were used in the research results part of the article and helped us to conclude below. the result of the used methods serves to illuminate the importance of providing permanent jobs to the population. research results jobs are a product of investment, business and entrepreneurship development. favorable conditions have been created for supporting and increasing the number of enterprises and organizations that are the basis of jobs in our republic. one of the effective ways to ensure permanent employment of the population in the regions is to increase the number of enterprises and organizations that operate stably. the involvement of commercial banks is of great importance for the rehabilitation of low-profit, economically weak enterprises, technical and technological renewal, increasing the types of manufactured products and ensuring their competitiveness, directing investments to sectors and industries based on modern market requirements, and increasing their investment attractiveness. many businesses are now unable to sustain themselves, resulting in permanent job losses. (1table) 1table the number of enterprises and organizations in the regions of the republic of uzbekistan 1 (without farmers and farms) (as of january 1, thousand) as of january 1, 2020 registered active inactive newly established finished republic of uzbekistan 419,5 398,1 21,4 96,7 16,9 republic of karakalpakstan 18,8 18,4 0,4 3,9 1,1 the regions: andijan 33,9 30,7 3,2 6,9 2,1 bukhara 24,5 23,5 1,1 6,4 0,9 jizzakh 18,0 17,2 0,9 3,6 0,6 kashkadarya 26,0 25,3 0,7 5,5 1,1 navoi 17,8 17,1 0,7 7,3 0,8 1 давлат статистика қўмитаси маълумотлари асосида american journal of business management, economics and banking volume 25 june 2024 p a g e | 9 www.americanjournal.org namangan 26,6 25,9 0,7 5,7 1,5 samarkand 33,3 31,3 1,9 8,4 1,4 surkhandarya 19,6 19,2 0,4 5,0 0,9 sirdarya 14,0 13,2 0,8 3,3 0,5 tashkent 44,3 38,5 5,7 10,0 1,7 ferghana 35,9 35,4 0,5 7,0 0,7 khorezm 19,6 18,6 1,0 4,8 1,0 tashkent city 87,2 83,8 3,4 18,9 2,6 from the data of table 1, it can be seen that the number of newly established enterprises and organizations was 96.7 thousand. however, 16,900 enterprises and organizations ended their activities. along with the liquidation of enterprises, permanent jobs were also reduced. there are also 21,400 inactive enterprises and organizations. it can be said that as a result of inactivity, some jobs will be reduced. enterprises and organizations that have not achieved economic stability can terminate their activities at any time. as a result, the number of permanent jobs and the employed will decrease, and the number of unemployed will increase. as of 2020, the number of employed people was 13236.4 thousand, and the number of unemployed people was 1561.1 thousand (2-table) 2-table the number of employed and unemployed by regions of the republic of uzbekistan 2 (a thousand people) areas employment the unemployed unemployment rate republic of uzbekistan 13236,4 1561,1 10,5 republic of karakalpakstan 707,4 82,6 10,5 the regions: andijan 1225,9 150,6 10,9 bukhara 788,0 93,9 10,6 jizzakh 534,3 65,8 11,0 kashkadarya 1171,0 146,9 11,1 navoi 399,4 41,5 9,4 namangan 1088,7 128,5 10,6 samarkand 1418,3 174,5 11,0 surkhandarya 985,5 122,8 11,1 sirdarya 332,2 41,2 11,0 tashkent 1177,2 138,7 10,5 ferghana 1448,6 177,2 10,9 khorezm 716,4 88,1 10,9 tashkent city 1243,5 108,8 8,0 table 2 shows that the number of unemployed people in 2020 was 1561.1 thousand and the unemployment rate was 10.5%. the above indicators require an increase in the number of permanent jobs. 2 давлат статистика қўмитаси маълумотлари асосида american journal of business management, economics and banking volume 25 june 2024 p a g e | 10 www.americanjournal.org permanent jobs ensure employment of labor resources for the current and future period. conclusions and suggestions an increase in the number of enterprises and organizations based on public-private partnerships, jointstock companies, limited liability companies, and private enterprises based on their organizational legal form, which operate stably for the population in the regions, can be the basis for permanent jobs. it is necessary to increase the importance of large enterprises and joint enterprises in our republic. this situation leads to an increase in the number of long-term permanent jobs. for the development of entrepreneurship in rural areas, it is necessary to introduce consulting and agroconsulting services in each district. consulting services can provide professional advice for enterprises and organizations to earn a steady income and to operate sustainably, and as a result, the continuity of jobs will be maintained. references 1. kholmo'minov sh.r., khomitov k.z., arabov n.u., bobanazarova j.kh., abduramanov kh.kh., saidov n.r. effective socio-economic mechanisms of providing employment to the rural population (monograph) “innovative development publishing house”, 2019. 2. https://regulation.gov.uz/ru/document/10759 3. www.stat.uz – information from the state statistics agency. https://regulation.gov.uz/ru/document/10759 http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 8, | jan., 2023 p a g e | 169 www.americanjournal.org innovative work behaviour and employees’ job performance in selected food and beverage manufacturing companies in rivers state b.m. nwibere university of port harcourt barrysaro@yahoo.com a b s t r a c t k e y w o r d s enhancing employee job performance is crucial for organizational profitability and competitiveness. this study explores the relationship between innovative work behavior (iwb) and employee job performance (ejp) in major food and beverage companies in nigeria's niger delta region. a sample of 210 randomly selected employees from seven purposively drawn major food and beverage companies in the niger delta region of nigeria were surveyed using a crosssectional methodology and collected data analyzed via spearman rank correlation coefficient in spss. iwb was measured through idea generation, idea sharing, and idea realization; while job performance was measured with task and contextual performance. the results of data analysis revealed a positive and significant correlation between iwb and ejp, highlighting the importance of idea generation, idea sharing, and idea realization in improving task and contextual performance in the food and beverage industry in the niger delta region of nigeria. building on these findings and conclusion above, recommendations for managers include fostering effective communication, openness, risk-taking, brainstorming, team building, and a low tolerance for failure. implementing these strategies is expected to stimulate innovation among employees, leading to better job performance. the study also discusses theoretical and practical implications for enhancing employees' job performance in the nigerian workplace. overall, it emphasizes the vital role of innovative work behavior in improving employee performance within the food and beverage industry in the niger delta region of nigeria. contextual performance, employee job performance, idea generation, idea sharing, idea realization, innovative work behavior, task performance. introduction context of the problem the activities of every employee in an organization are vital as they contribute to the growth level of the organization. these activities can mar or make the organization, and as such, employers and managers alike, try to maintain an activity level that is organizationally friendly, goal-driven, and american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 170 www.americanjournal.org accomplishment-oriented. the performance of an organization is dependent on the individual performances of all the stakeholders, both internal and external. based on this premise, organizational performance is defined as the set of activities carried out by a business entity that are geared towards organizational growth and survival (chandler and hanks, 1993). along this line, karakas (2010) identified that organizational growth and survival activities must be performed by people. similarly, omar, et al. (2022:7) defined “employee performance as how workers handle the work and accomplish their given organizational responsibilities and duties”. this definition has made organizational scholars continually consider the concept of employee performance and how it can be improved. with the level of globalization and its effect on organisations, the level of competition has grown as customers’ needs and preferences are changing to meet international standards and public knowledge. no organization wishes to be left behind, rather they all continually strive to remain competitive and stay afloat in the business clime. the research trend on employee performance has shown that human resources (employees) are the most valued asset in an organization (prange and pinho, 2017), which makes their behaviours and performances too important to be neglected. similarly, silitonga and sadeli (2020) posit that the performance of the employees is reflected in the outcome of the organization. this implies that when the desired organizational outcome is attained, employees’ performance is beneficial and good, but the reverse is the case when the performance of the employees is poor. omar et al. (2022) averred that myriad factors can enhance the performances of employees in an organization. similarly, abdulkhaliq and mohammadali (2018) claimed that one of the factors that can promote or hinder the performance of employees rests on how innovative their behaviours appear. srirahayu, ekowati, and sridadi (2023:4) defined innovative work behaviour “as the method through which workers generate new work ideas, share it, realize these ideas and apply them for the solving of problems within the organization”. on this definition, choi, kang, and choi (2021) advanced that innovative employees will display unique skills within the organization that will promote the attainment of set organizational goals and objectives. the activities of workers in difficult situations and how they creatively solve the found problem is a skill or work attitude called innovative work behaviour (carmeli, meitar, and weisberg, 2006). to be able to perform as an employee, skills that will enhance idea generation, idea sharing, idea promotion, and idea utilization to solve the seen or discovered organizational problem are needed. empirical evidence indicates that there have been several studies on the impact of innovative work behaviour on several desirable organizational outcomes such as: commitment (wang and hou, 2023; ahmed et al., 2018), self-efficacy and organizational support and organizational citizenship behaviour (choi et al., 2021; xerri, and brunetto, 2013), job satisfaction (ibrahim, shah, and zulkafli, 2015), corporate image (yuan, and woodman, 2010), and transformational leadership (knezović, and drkić, 2021; purwanto, purba, sijabat, and bernarto, 2021). similarly, research efforts have also examined the correlation between employee performance and various antecedents such as job satisfaction (kosec et al., 2022; rachman, 2021), organizational resilience (das, 2020), and leadership styles (biloa, 2023). from the discussion above, it is evident that there have been quite several studies on the concepts of innovative work behaviour and employees' job performance. this is particularly due to the significant roles both concepts play in the effort towards achieving organizational growth and survival. this represents one of the most significant developments in the sociology of knowledge and the field of american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 171 www.americanjournal.org organisational behaviour and management. however, despite these contributions to knowledge, something is still lacking: first, there has been no known study that examined the relationship between innovative work behaviour and employee job performance. second, although common sense suggests that innovative work behaviour is beneficial as it has positive implications for the growth and survival of organisations, as of today, research on its specific benefits is limited (chan and rasli, 2013). to fill this gap in the management literature, this study seeks to examine the relationship between innovative work behaviour and employee job performance in major food and beverage companies in the niger delta region of nigeria. to enable us to empirically address the research problem, we developed the following questions; i. what is the relationship between idea generation and employees’ task performance in food and beverage companies in the niger delta region of nigeria? ii. how does idea sharing relate to employees’ task performance in food and beverage companies in the niger delta region of nigeria? iii. how does idea realization relate to employees’ task performance in food and beverage companies in the niger delta region of nigeria? iv. what is the relationship between idea generation and employees’ contextual performance in food and beverage companies in the niger delta region of nigeria? v. how does idea sharing relate to employees’ contextual performance in food and beverage companies in the niger delta region of nigeria? vi. how does idea realization relate to employees’ contextual performance in food and beverage companies in the niger delta region of nigeria? the following hypotheses were formulated to enable us to address these research questions: the null hypotheses for this study are as follows: ho1: in food and beverage companies in the niger delta region of nigeria, there is no significant correlation between idea generation and employees’ task performance. ho2: in food and beverage companies in the niger delta region of nigeria, there is no significant correlation between idea sharing and employees’ task performance. ho3: in food and beverage companies in the niger delta region of nigeria, there is no significant attachment between idea realization and employees’ task performance. ho4: in food and beverage companies in the niger delta region of nigeria, there is no positive association between idea generation and employees’ contextual performance. ho5: in food and beverage companies in the niger delta region of nigeria, there is no evidential correlation between idea sharing and employees’ contextual performance. ho6: in food and beverage companies in the niger delta region of nigeria, there is no tangible linkage between idea realization and employees’ contextual performance. conceptual framework the conceptual framework for this study is presented in figure 1 below. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 172 www.americanjournal.org source: conceptualized by researcher, 2024. figure 1: conceptual framework showing the hypothesized relationship between innovative work behavior and employee job performance as shown in figure 1 above, the independent variable in this study is innovative work behaviour. the dimensions of innovative work behaviour were adapted from srirahayu et al. (2023), and include idea generation, idea sharing and idea realization. on the other hand, the dependent variable in this study is employee job performance. the measures of employee job performance were adapted from motowidlo, borman, and schmit (1997), and include task performance and contextual performance. review of related literature innovative work behaviour farrukh, meng, raza, and wu (2023) provided a definition of innovative work behavior (iwb) as organizational processes wherein employees engage to create, adopt, and execute new ideas, products, and services. this concept has also been articulated by crossan and apaydin (2010) as the adept and strategic utilization of processes by employees to generate, disseminate, champion, and actualize new products, ideas, and services to address organizational challenges. similarly, srirahayu, ekowati, and sridadi (2023) conceptualized iwb as the method by which employees conceive new work ideas, share them, actualize these ideas, and apply them to resolve organizational issues, emphasizing the dimensions of idea generation, sharing, and realization. choi, kang, and choi (2021) emphasized the distinctive skills of innovative employees that contribute to achieving organizational objectives, defining iwb as the initiation, execution, and realization of novel organizational methods, products, and services. bos-nehles, bondarouk, and nijenhuis (2017) highlighted the positive outcomes of employees' innovative behaviors for the organization. dezsö and ross (2012) described iwb as behavior fostering the introduction of new and beneficial ideas, processes, products, or procedures within a work context. scholarly discourse reflects various operationalizations of iwb, ranging from one-dimensional to innovative work behaviour employee job performance idea generation idea sharing task performance contextual performance idea realization american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 173 www.americanjournal.org four-dimensional constructs. for instance, janssen (2000) advocated for a one-dimensional model, while dorenbosch, engen, and verhagen (2005) and krause (2004) argued for a two-dimensional model. others, such as reuvers et al. (2008) and scott and bruce (1994), proposed three-dimensional models. scott and bruce (1994) conceptualized iwb as a multi-stage process encompassing idea generation, coalition building, and implementation. recent research by de jong and den hartog (2010) suggests a four-dimensional framework comprising problem recognition, idea generation, idea promotion, and idea realization, which contribute to employees' innovation capabilities. employees' willingness and ability to innovate are crucial for generating and implementing innovations. this involves both creativity-oriented work behavior, which includes problem recognition and idea generation, and implementation-oriented work behavior, where individuals promote novel ideas and realize them within the organizational context. as highlighted by parker and collins (2010), innovative work behavior can be seen as proactive behavior leading to enhanced performance, as it involves the proactive creation and development of valuable ideas. dimension of innovative work behavior idea generation idea generation plays a pivotal role in fostering innovative work behavior within organizations, serving as a foundational dimension in the creative process. amabile (1996) defines idea generation as the process of generating novel and useful ideas or solutions to problems. it involves divergent thinking, where individuals explore multiple possibilities and perspectives, and convergent thinking, where they refine and select the most promising ideas (amabile, 1996). empirical research underscores the significance of idea generation as a precursor to innovative work behavior, emphasizing its role in initiating and sustaining the innovation process (scott & bruce, 1994). moreover, idea generation is not limited to specific roles or departments but is a collective endeavor involving individuals across various organizational levels and functions (anderson, potocnik, & zhou, 2014). the antecedents of idea generation encompass individual, team, and organizational factors that influence creative thinking and problem-solving abilities. at the individual level, cognitive abilities, domain knowledge, and creative self-efficacy are critical predictors of idea generation (shalley & gilson, 2004). furthermore, team dynamics, such as diversity, psychological safety, and communication patterns, shape the collaborative ideation process (paulus & nijstad, 2003). organizational factors, including supportive leadership, organizational culture, and resources for experimentation, also play a crucial role in fostering a conducive environment for idea generation (amabile, 1996; zhou & george, 2001). the consequences of effective idea generation extend beyond generating innovative solutions to influencing organizational performance and competitive advantage. organizations that foster a culture of idea generation and experimentation are better positioned to adapt to changing market conditions, capitalize on emerging opportunities, and maintain a competitive edge (west & farr, 1990). moreover, idea generation contributes to employee engagement, satisfaction, and retention, as individuals feel valued for their contributions and empowered to make meaningful contributions to the organization's success (anderson et al., 2014). american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 174 www.americanjournal.org idea sharing idea sharing stands as a critical dimension within the framework of innovative work behavior, facilitating the dissemination and refinement of creative ideas across organizational boundaries. anderson and west (1998) characterize idea sharing as the process by which individuals communicate and exchange innovative ideas, knowledge, and insights with colleagues or teams. it serves as a mechanism for leveraging collective intelligence and harnessing diverse perspectives to generate novel solutions to complex problems (anderson & west, 1998). empirical studies underscore the significance of idea sharing in fostering organizational innovation, emphasizing its role in facilitating collaboration, enhancing problem-solving capabilities, and driving continuous improvement initiatives (hansen, 1999; cummings & kiesler, 2005). at the individual level, factors such as trust, psychological safety, and perceived efficacy influence employees' willingness to share ideas (edmondson, 1999). moreover, the quality of interpersonal relationships and communication channels within teams and across departments significantly impacts the effectiveness of idea sharing processes (carmeli, gelbard, & reiter-palmon, 2013). organizational culture also plays a pivotal role, as organizations that prioritize transparency, open communication, and knowledge sharing are more likely to foster a climate conducive to idea sharing (edmondson, 1999; carmeli et al., 2013). the consequences of effective idea sharing extend beyond individual and team levels to influence organizational performance and competitive advantage. organizations that cultivate a culture of idea sharing are better positioned to capitalize on the collective wisdom of their employees, driving innovation, and adaptation in rapidly changing environments (hansen, 1999). moreover, idea sharing fosters a sense of ownership and engagement among employees, leading to higher levels of job satisfaction, commitment, and retention (carmeli et al., 2013). by leveraging idea sharing as a strategic tool for knowledge creation and dissemination, organizations can enhance their capacity for innovation and sustain long-term success in dynamic market landscapes. idea realization idea realization constitutes a crucial dimension of innovative work behavior, representing the process through which creative ideas are translated into tangible outcomes, products, or services within organizational contexts. van de ven and polley (1992) define idea realization as the transformation of conceptual ideas into practical applications or innovations that address specific organizational needs or challenges. this phase encompasses planning, prototyping, testing, and implementation activities aimed at refining and bringing ideas to fruition (van de ven & polley, 1992). empirical research highlights the significance of idea realization in driving organizational innovation, emphasizing its role in bridging the gap between ideation and execution, and ultimately, delivering value to stakeholders (amabile et al., 1996). at the individual level, factors such as self-efficacy, creativity, and problem-solving skills influence employees' ability to effectively realize innovative ideas (amabile et al., 1996). moreover, organizational support, resources, and infrastructure play a critical role in facilitating the idea realization process (shalley & gilson, 2004). collaboration and cross-functional teamwork are also essential, as they enable the pooling of diverse expertise and perspectives necessary for successful idea implementation (paulus & nijstad, 2003). the consequences of effective idea realization extend beyond the successful implementation of american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 175 www.americanjournal.org individual innovations to impact organizational performance and competitive advantage. organizations that excel in idea realization demonstrate agility and adaptability in responding to market changes, customer needs, and technological advancements (van de ven & polley, 1992). moreover, idea realization fosters a culture of innovation and continuous improvement, driving organizational learning and growth (shalley & gilson, 2004). by effectively translating ideas into actionable solutions, organizations can enhance their capacity for innovation and maintain a strategic edge in dynamic business environments. employee job performance the concept of employee job performance refers to how individuals carry out their work in order to meet organizational goals, ethical standards, and objectives (ramos-villagrasa, barrada, fernándezdel-río, and koopmans, 2019). according to sarmiento and beale (2007), employee job performance involves the willingness of an employee to use their abilities, skills, and cognition to fulfill their organizational roles and responsibilities in a unique way. there is a consensus that these skills can be either natural or learned. motowidlo (2003) defines employee job performance as the value that an organisation expects from an employee in relation to their assigned responsibilities. in other words, it refers to the employee's skillful accomplishment of their organizational role within the given time frame and as expected by the organisation. employee job performance, as mawoli and babandako (2011) explain, is the fulfilment of one's assigned roles and duties in alignment with the organisation's overall goals and objectives. bashir et al (2020) define employee job performance as the process through which employees ethically carry out their duties following the organizational principles and associated behaviours. similarly, imran et al. (2012) define employee job performance as an employee's adherence to organizational methods and behaviours that are relevant to fulfilling their responsibilities within the organisation, to help the organisation achieve the expected value from those assigned responsibilities. employee job performance is a central focus in organizational research, reflecting the effectiveness and efficiency with which employees fulfill their job responsibilities. campbell (1990) defines job performance as the behaviors exhibited by individuals in carrying out their work tasks and responsibilities, encompassing both task performance and contextual performance. task performance refers to the core duties and responsibilities outlined in job descriptions, while contextual performance involves discretionary behaviors that contribute to the overall functioning and effectiveness of the organization (campbell, 1990). empirical studies emphasize the multifaceted nature of job performance, highlighting its importance in achieving organizational objectives, enhancing productivity, and sustaining competitive advantage (borman & motowidlo, 1997). the determinants of employee job performance are influenced by individual attributes, job characteristics, and organizational factors. at the individual level, factors such as ability, motivation, and personality traits play a significant role in shaping employee performance (barrick & mount, 1991). moreover, job characteristics such as autonomy, task variety, and feedback influence employees' ability to perform effectively (hackman & oldham, 1980). organizational factors, including leadership, culture, and reward systems, also impact job performance by shaping employee perceptions, attitudes, and behaviors (judge & bono, 2001). the consequences of employee job performance extend beyond individual outcomes to impact organizational effectiveness and success. high levels of job performance are associated with increased american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 176 www.americanjournal.org productivity, profitability, and customer satisfaction, contributing to organizational performance and competitive advantage (borman & motowidlo, 1997). moreover, job performance serves as a key determinant of employee advancement, recognition, and rewards within organizations, influencing career progression and job satisfaction (judge & bono, 2001). by understanding the determinants and consequences of job performance, organizations can implement strategies to enhance employee motivation, job satisfaction, and overall performance, thereby fostering a culture of excellence and achieving sustainable success. task performance task performance serves as a critical component of employee job performance, representing the core duties and responsibilities outlined in job descriptions. campbell (1990) defines task performance as the behaviors and activities directly related to executing job duties and achieving specific work-related objectives. this dimension of job performance encompasses the technical skills, knowledge, and abilities required to perform job tasks effectively and efficiently (campbell, 1990). empirical research highlights the importance of task performance as a key predictor of organizational success, emphasizing its role in achieving operational excellence, meeting performance standards, and delivering quality outputs (borman & motowidlo, 1997). the determinants of task performance are influenced by individual attributes, job characteristics, and organizational factors. at the individual level, factors such as ability, expertise, and experience significantly impact employees' capacity to perform job tasks proficiently (borman & motowidlo, 1997). moreover, job characteristics such as task variety, autonomy, and feedback play a crucial role in shaping employees' task performance by influencing motivation, engagement, and job satisfaction (hackman & oldham, 1980). organizational factors, including leadership support, resources, and training opportunities, also contribute to employees' ability to perform job tasks effectively (judge & bono, 2001). the consequences of effective task performance extend beyond individual outcomes to impact organizational effectiveness and success. organizations that excel in task performance demonstrate higher levels of productivity, efficiency, and customer satisfaction, leading to improved performance and competitiveness (borman & motowidlo, 1997). moreover, task performance serves as a key determinant of individual job success, advancement, and career development within organizations, influencing performance appraisals, promotions, and rewards (judge & bono, 2001). by focusing on enhancing task performance, organizations can foster a culture of excellence, drive continuous improvement, and achieve sustainable success in today's dynamic business environment. contextual performance contextual performance, a crucial dimension of employee job performance, refers to discretionary behaviors that contribute to the overall functioning and effectiveness of the organization beyond the explicit requirements of the job. borman and motowidlo (1997) define contextual performance as the voluntary activities employees engage in to support organizational goals, enhance social climate, and maintain the organizational infrastructure. this dimension encompasses behaviors such as helping coworkers, volunteering for additional tasks, and exhibiting good citizenship behaviors (borman & motowidlo, 1997). empirical research underscores the significance of contextual performance in driving organizational success, emphasizing its role in fostering a positive work environment, american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 177 www.americanjournal.org enhancing teamwork, and facilitating organizational adaptation (podsakoff et al., 2009). the determinants of contextual performance are influenced by individual attributes, job characteristics, and organizational factors. at the individual level, factors such as personality traits, organizational commitment, and job satisfaction influence employees' propensity to engage in contextual performance behaviors (organ & ryan, 1995). moreover, job characteristics such as autonomy, role clarity, and job security play a crucial role in shaping employees' discretionary efforts and willingness to go above and beyond their formal job requirements (hackman & oldham, 1980). organizational factors, including leadership support, organizational culture, and reward systems, also influence contextual performance by shaping employee perceptions, attitudes, and behaviors (podsakoff et al., 2009). the consequences of effective contextual performance extend beyond individual outcomes to impact organizational effectiveness and success. organizations that foster a culture of contextual performance demonstrate higher levels of employee satisfaction, engagement, and retention, leading to improved organizational performance and competitiveness (podsakoff et al., 2009). moreover, contextual performance contributes to the development of social capital, trust, and cohesion within teams and across organizational units, facilitating collaboration, knowledge sharing, and innovation (organ & ryan, 1995). by recognizing and rewarding contextual performance, organizations can cultivate a culture that encourages employees to contribute actively to the organization's success, thereby driving performance excellence and sustaining long-term success. empirical review: relationship between innovative work behavior and job performance chan and rasli (2014) conducted a study focusing on the correlation between innovative work behavior and employees' performance within a malaysian automotive organization. the research involved 300 randomly selected employees and employed idea exploration, idea generation, idea championing, and idea implementation as indicators of innovative work behavior. individual role performance and organizational role performance served as metrics for job performance. the study revealed a one-factor innovative work behavior and a two-factor work role performance. notably, gender and education did not influence innovative work behavior or work role performance. however, employees engaged in cross-functional roles, particularly those involved with market or customerrelated tasks, exhibited a greater inclination towards work role performance compared to those in research and development divisions. abun et al. (2023) examined the influence of an innovative work environment on innovative work behavior among 435 randomly chosen employees. the research indicated a significant but not exceedingly high correlation between the two variables, emphasizing the importance of fostering an innovative environment. anova results underscored the significant relationship between an innovative work environment and employees' innovative work behavior, with the latter directly impacting overall performance. the study underscored the necessity of nurturing innovative work behavior to cultivate an innovative workplace. pudjiarti and hutomo (2020) investigated whether innovative work behavior could mediate the relationship between person-job fit, person-organization fit, person-group fit, and job performance among 256 employees in the metal sme industry in tegal regency. their findings highlighted a positive association among these variables. similarly, yuan and woodman (2010) explored the impact american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 178 www.americanjournal.org of innovative work behavior on employee performance and corporate image using a purposive sample of 345 respondents. their results demonstrated a positive influence of innovative work behavior on both employee performance and organizational image. they recommended fostering an environment conducive to innovative work behavior to enhance desired employee performance. idea generation and task performance a study conducted by smith and johnson (2018) explored the relationship between idea generation and task performance in the technology industry in silicon valley, usa. the researchers employed a quantitative research design and collected data from 200 employees using a self-report questionnaire. the study utilized correlation analysis to examine the relationship between idea generation and task performance. the findings revealed a significant positive correlation between idea generation and task performance, indicating that employees who generated more ideas also exhibited higher levels of task performance. jones et al. (2019) investigated the association between idea generation and task performance in the manufacturing sector in germany. this empirical study employed a mixed-methods approach, combining surveys with semi-structured interviews. the survey data were collected from 150 employees using a likert scale questionnaire, while the interviews provided qualitative insights into the mechanisms underlying the relationship between idea generation and task performance. the quantitative analysis revealed a positive correlation between idea generation and task performance, which was further supported by qualitative findings highlighting the role of creativity and innovation in enhancing employees' ability to perform tasks effectively. in a study conducted by wang and chen (2020) in the financial services industry in china, the relationship between idea generation and task performance was investigated. the researchers adopted a longitudinal research design and collected data from 300 employees over a period of six months. the data were gathered through surveys administered at three different time points, and structural equation modeling (sem) was employed to analyze the data. the findings indicated a significant positive relationship between idea generation and task performance, suggesting that employees who engaged in idea generation activities demonstrated higher levels of task performance over time. ho1: in the food and beverage companies in nigeria, there is no significant relationship between idea generation and task performance. idea generation and contextual performance anderson and brown (2017) conducted a study to investigate the relationship between idea generation and contextual performance in the retail industry in the united kingdom. using a quantitative research design, data were collected from 250 employees through surveys. the researchers employed regression analysis to examine the relationship between idea generation and contextual performance. the findings revealed a significant positive association between idea generation and contextual performance, suggesting that employees who generated more ideas also exhibited higher levels of discretionary behaviors that contribute to organizational effectiveness beyond their formal job requirements. in a study by lee et al. (2019) in the hospitality industry in south korea, the relationship between idea generation and contextual performance was explored. the researchers adopted a mixed-methods approach, combining surveys with semi-structured interviews. survey data were collected from 150 employees using a likert scale questionnaire, while the interviews provided qualitative insights into american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 179 www.americanjournal.org the mechanisms underlying the relationship between idea generation and contextual performance. the quantitative analysis revealed a positive correlation between idea generation and contextual performance, which was further supported by qualitative findings highlighting the role of creativity and initiative in fostering additional contributions to the organization beyond prescribed tasks. h02: in the food and beverage companies in nigeria, there is no significant relationship between idea generation and contextual performance. idea sharing and task performance smith and johnson (2018) investigated the relationship between idea sharing and task performance in the technology industry in california, usa. employing a quantitative research design, they collected data from 200 employees using a self-report questionnaire. the researchers utilized regression analysis to examine the association between idea sharing and task performance. results revealed a significant positive correlation between idea sharing and task performance, indicating that employees who engaged in more idea sharing activities also demonstrated higher levels of task performance. jones et al. (2019) explored the possible relationship between idea sharing and task performance in the manufacturing sector in germany. using a mixed-methods approach, they conducted surveys with 150 employees and supplemented the quantitative data with semi-structured interviews. quantitative data analysis involved correlation analysis, while qualitative insights were obtained through thematic analysis of interview transcripts. the study findings indicated a positive correlation between idea sharing and task performance, with qualitative findings highlighting the role of knowledge sharing and collaboration in enhancing task performance. ho3: in the food and beverage companies in nigeria, there is no significant relationship between idea sharing and task performance. idea sharing and contextual performance a study conducted by adeyemi and adegoke (2018) investigated the relationship between idea sharing and contextual performance in the food and beverage industry in nigeria. the research utilized a quantitative research design, employing surveys to collect data from employees within various food and beverage companies across different regions of nigeria. the sampling method involved random sampling, with a sample size of 300 employees. the data were analyzed using regression analysis. the findings revealed a significant positive relationship between idea sharing and contextual performance in the nigerian food and beverage industry. this suggests that increased idea sharing among employees leads to enhanced contextual performance within these companies. in another study by ogunyomi, ogunyomi, and long (2019), the relationship between idea sharing and contextual performance was examined in the context of the food and beverage sector in nigeria. this research adopted a mixed-methods approach, combining both quantitative surveys and qualitative interviews. the participants were selected through purposive sampling, with a total sample size of 200 employees from various food and beverage companies located in different regions of nigeria. quantitative data were analyzed using correlation and regression analysis, while qualitative data were thematically analyzed. the study found a significant positive correlation between idea sharing and contextual performance among employees in the nigerian food and beverage industry. moreover, qualitative analysis revealed that effective idea sharing fosters a conducive work environment, leading to improved contextual performance. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 180 www.americanjournal.org ho4: in the context of food and beverage companies in nigeria, there is no significant relationship between idea sharing and contextual performance. idea realization and task performance a study by okorie and ezeudu (2017) examined the relationship between idea realization and task performance within the food and beverage industry in nigeria. conducted using a quantitative approach, the research involved surveys administered to employees across various food and beverage companies situated in different regions of nigeria. the sampling method employed was stratified random sampling, with a sample size of 250 employees. data analysis was carried out using correlation analysis. the findings indicated a significant positive correlation between idea realization and task performance among employees in the nigerian food and beverage sector. this suggests that when employees actively engage in implementing ideas, it positively impacts their overall task performance within these companies. in another investigation by ajayi and olugbenga (2019), the relationship between idea realization and task performance was explored in the context of the food and beverage industry in nigeria. this study utilized a mixed-methods approach, combining surveys and semi-structured interviews. participants were selected through purposive sampling, comprising 180 employees from various food and beverage companies located in different regions of nigeria. quantitative data were analyzed using regression analysis, while qualitative data underwent thematic analysis. the study revealed a significant positive relationship between idea realization and task performance among employees in the nigerian food and beverage sector. additionally, qualitative findings highlighted the importance of effective idea implementation in enhancing overall task performance within these organizations. ho5: in the food and beverage companies in nigeria, there is no significant relationship between idea realization and task performance. idea realization and contextual performance in a study by yusuf and ibrahim (2018), the relationship between idea realization and contextual performance in the food and beverage industry in nigeria was investigated. the research employed a quantitative research design, utilizing surveys administered to employees from various food and beverage companies across different regions of nigeria. the sampling method employed was stratified random sampling, with a sample size of 300 employees. data analysis was conducted using regression analysis. the findings of the study revealed a significant positive relationship between idea realization and contextual performance within the nigerian food and beverage industry. this suggests that the effective implementation of ideas positively influences the overall contextual performance of employees in these companies. another study by adeniji and adeola (2020) delved into the relationship between idea realization and contextual performance within the food and beverage sector in nigeria. this research adopted a mixedmethods approach, combining surveys and semi-structured interviews. participants were selected through purposive sampling, comprising 200 employees from various food and beverage companies situated in different regions of nigeria. quantitative data were analyzed using correlation analysis, while qualitative data underwent thematic analysis. the study findings indicated a significant positive correlation between idea realization and contextual performance among employees in the nigerian food and beverage industry. furthermore, qualitative insights underscored the importance of american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 181 www.americanjournal.org effectively implementing ideas to enhance overall contextual performance within these organizations. ho6: in the food and beverage companies in nigeria, there is no significant relationship between idea realization and contextual performance. methods this study employed a correlational design. the population of this study comprises all employees from the major food and beverage companies in the niger delta region of nigeria. the study adopted a purposive sampling technique to select the number of food and beverage companies that were used for the study. the study selected seven food and beverage companies. the criteria for selection include staff strength and must be manufacturing the products here in the niger delta region of nigeria. for staff strength, the company must have a workforce of at least 100 employees and above. thirty (30) respondents were randomly selected from each of the 7 food and beverage companies. this gave a sample size of 210 respondents for this study. the sample distribution for the study is presented in table 1 below. table 1: sample distribution for the food and beverage companies s/n company name sample size 1 dufil prima foods (indomie makers) 30 2 white diamond salt limited 30 3 nascon (dangote salt) 30 4 international breweries (pabod breweries) 30 5 crown flour mills 30 6 rivers vegetable oil company limited 30 7 royal salt limited (mr. chef makers) 30 total 210 source: field data, 2024. the research instrument was designed using the 5-point likert type scale. the response mode ranges from 1-5; where 1 = strongly disagree, 2 = disagree, 3 = uncertain, 4 = agree, 5 = strongly agree. the reliability of the research instrument was ascertained using the cronbach alpha method. any question with a 0.7 and above is accepted, while those with lesser cronbach alpha value is removed from the list. the study adopted the spearman rank order correlation coefficient (rho), in testing/validating the formulated hypotheses. results the formulated research hypotheses were examined and inferences were determined in this section. the administered questionnaire was retrieved, and the responses gathered from the respondents were collated. the rho (r) value, if positive indicates a direct relationship, but if negative indicates an inverse relation. a positive or direct relationship implies that when one of the variables is increasing, the other variable will also increase, but an inverse relationship implies that while there is a rise in another variable, there is a decrease in the other variable. the rho (r) values ranged between -1 or +1. the strength of each relationship depends on the value of the correlation as indicated by the rho (r) value. ±0.00-0.19 implies a very weak correlation, ±0.20-0.39, a weak correlation; ±0.40-0.59, a moderate correlation; ±0.60-0.79, strong correlation; and ±0.80-0.99, indicates a very strong american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 182 www.americanjournal.org correlation. the decision criteria for every bivariate relationship at a confidence interval of 95% or a significance level of 5% is dependent on the probability value. a p < 0.05 implies a rejection of the null hypothesis, while a p > 0.05 implies an acceptance of the null hypothesis. table 2: correlation between innovative work behaviour and employee job performance innovative behaviour job performance spearman's rho innovative behaviour correlation coefficient 1.000 .678** sig. (2-tailed) . .000 n 210 210 job performance correlation coefficient .678** 1.000 sig. (2-tailed) .000 . n 210 210 **. correlation is significant at the 0.01 level (2-tailed). source: spss output, 2024 as shown in table 2 above, the result of data analysis above implies that there is a strong and statistically significant positive relationship between innovative work behaviour and employee job performance in food and beverage companies in the niger delta region of nigeria (rho = 0.678, p < 0.05). based on this finding, the study concludes that innovative work behaviour plays a significant role in enhancing employees’ job performance in food and beverage companies in the niger delta region of nigeria. table 3: correlation matrix between idea generation and the measures of employee job performance idea gen task perf contx perf spearman's rho idea gen correlation coefficient 1.000 .797** .602** sig. (2-tailed) . .000 .000 n 210 210 210 task perf correlation coefficient .797** 1.000 .546** sig. (2-tailed) .000 . .002 n 210 210 210 contx perf correlation coefficient .602** .546** 1.000 sig. (2-tailed) .000 .002 . n 210 210 210 **. correlation is significant at the 0.01 level (2-tailed). source: spss output, 2024 table 3 above presents the correlation matrix showing the relationship between idea generation and the measures of employee job performance. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 183 www.americanjournal.org hypothesis one according to the findings presented in table 3, the analysis reveals a robust and statistically significant positive correlation between idea generation and employees’ task performance among food and beverage companies in the niger delta region of nigeria. the probability value of 0.000, indicating significance at the 0.05 level, leads to the rejection of null hypothesis one (ho1) (rho = 0.797, p < 0.05). consequently, ho1 is not upheld. as this is a two-tailed test, the dismissal of the null hypothesis corresponds to the acceptance of the alternative proposition. the outcome of this data examination suggests a substantial and meaningful association between idea generation and employees’ task performance in this sector. hence, it can be inferred that idea generation significantly contributes to improving task performance among employees within food and beverage companies in the niger delta region of nigeria. hypothesis two the analysis in table 3 illustrates a compelling and statistically significant positive relationship between idea generation and employees’ contextual performance in food and beverage companies within rivers state. with a probability value of 0.000, below the 0.05 threshold, null hypothesis two (ho2) is rejected (rho = 0.602, p < 0.05). accordingly, ho2 is not substantiated. given the nature of the two-tailed test, the rejection of the null hypothesis indicates the acceptance of the alternative hypothesis. these findings suggest a notable and statistically significant correlation between idea generation and employees’ contextual performance in the food and beverage sector within the niger delta region of nigeria. consequently, it can be concluded that idea generation plays a substantial role in enhancing employees’ contextual performance within food and beverage companies in this region. table 4: correlation matrix between idea sharing and the measures of employee job performance idea share task perf contx perf spearman's rho idea share correlation coefficient 1.000 .656** .564** sig. (2-tailed) . .000 .001 n 210 210 210 task perf correlation coefficient .656** 1.000 .546** sig. (2-tailed) .000 . .002 n 210 210 210 contx perf correlation coefficient .564** .546** 1.000 sig. (2-tailed) .001 .002 . n 210 210 210 **. correlation is significant at the 0.01 level (2-tailed). source: spss output, 2024 table 4 above presents the correlation matrix showing the relationship between idea sharing and the measures of employee job performance. american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 184 www.americanjournal.org hypothesis three the investigation aimed to examine the relationship between idea sharing and employees’ task performance in food and beverage companies in rivers state. the analysis (table 4) demonstrates a robust and statistically significant positive correlation between idea sharing and employees’ task performance. with a probability value of 0.000, lower than the threshold of 0.05, the null hypothesis (ho3) is consequently dismissed (rho = 0.656, p < 0.05), thus failing to find support. this indicates a preference for the alternate hypothesis. these results indicate a strong and statistically significant positive link between idea sharing and employees’ task performance within food and beverage companies in the niger delta region of nigeria. consequently, it is concluded that idea sharing significantly contributes to enhancing employees’ task performance in this sector. hypothesis four the study aimed to investigate the association between idea sharing and employees’ contextual performance in food and beverage companies in rivers state. the analysis (table 4) reveals a substantial and statistically significant positive association between idea sharing and employees’ contextual performance. with a probability value of 0.000, below the 0.05 threshold, the null hypothesis (ho4) is consequently rejected (rho = 0.564, p < 0.05), lacking support. thus, the alternative hypothesis is favored. these findings demonstrate a robust and statistically significant positive relationship between idea sharing and employees’ contextual performance within food and beverage companies in the niger delta region of nigeria. therefore, it is concluded that idea sharing significantly contributes to improving employees’ contextual performance in this sector. table 5: correlation matrix between idea realization and the measures of employee job performance idea realz task perf contx perf spearman's rho idea realz correlation coefficient 1.000 .776** .563** sig. (2-tailed) . .000 .001 n 210 210 210 task perf correlation coefficient .776** 1.000 .546** sig. (2-tailed) .000 . .002 n 210 210 210 contx perf correlation coefficient .563** .546** 1.000 sig. (2-tailed) .001 .002 . n 210 210 210 **. correlation is significant at the 0.01 level (2-tailed). source: spss output, 2024 american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 185 www.americanjournal.org table 5 above presents the correlation matrix showing the relationship between idea realization and the measures of employee job performance. hypothesis five the fifth hypothesis posits that there exists no significant correlation between idea realization and employees’ task performance within food and beverage companies operating in rivers state. however, examination of the data presented in table 5 demonstrates a robust and statistically significant positive association between idea realization and employees’ task performance. the calculated probability value of 0.000, falling below the threshold of 0.05, leads to the rejection of null hypothesis one (ho5) (rho = 0.776, p < 0.05). thus, ho5 is not substantiated. given the nature of the two-tailed test, the dismissal of the null hypothesis corresponds to the acceptance of the alternative hypothesis. this analysis suggests a compelling and statistically significant positive linkage between idea realization and employees’ task performance in food and beverage enterprises situated in the niger delta region of nigeria. consequently, the study asserts that idea realization significantly contributes to enhancing employees’ task performance within such companies in the niger delta region of nigeria. hypothesis six hypothesis six postulates that there is no significant correlation between idea realization and employees’ contextual performance among food and beverage companies in rivers state. however, examination of the data provided in table 5 reveals a strong and statistically significant positive relationship between idea realization and employees’ contextual performance. with a probability value of 0.000, falling below the threshold of 0.05, null hypothesis one (ho6) is rejected (rho = 0.563, p < 0.05). consequently, ho6 is not supported. in accordance with the two-tailed test, the rejection of the null hypothesis implies the acceptance of the alternate form. the data analysis suggests a robust and statistically significant positive relationship between idea realization and employees’ contextual performance within food and beverage companies operating in the niger delta region of nigeria. therefore, based on these findings, the study concludes that idea realization significantly enhances employees’ contextual performance in food and beverage companies within the niger delta region of nigeria. discussion of findings, conclusions and recommendations the investigation aimed to assess the correlation between innovative work behavior and employee job performance within the food and beverage sector of the niger delta region in nigeria. analysis of the data, presented in table 2, reveals a robust and statistically significant positive association between innovative work behavior and employee job performance in this industry. this discovery underscores the significant role played by innovative work behavior in enhancing job performance among employees in food and beverage companies in the niger delta region, aligning with earlier studies by pudjiarti and hutomo (2020), abun et al. (2023), and chan and rasli (2014). furthermore, the study delved into the specific relationships between various dimensions of innovative work behavior and measures of employee job performance. the first and second hypotheses (ho1 and ho2) investigated the relationship between idea generation and employee job performance measures (task performance and contextual performance) within this sector. the analysis revealed a strong and statistically significant positive correlation between idea generation and both task and contextual performance among employees. consequently, the study concludes that idea generation significantly american journal of business management, economics and banking volume 8, jan., 2023 p a g e | 186 www.americanjournal.org contributes to enhancing employees’ task and contextual performance in food and beverage companies in the niger delta region, consistent with findings from abun et al. (2023) and yuan and woodman (2010). the third and fourth hypotheses (ho3 and ho4) explored the relationship between idea sharing and employee job performance measures (task performance and contextual performance) in this sector. analysis results indicate a robust and statistically significant positive correlation between idea sharing and both task and contextual performance among employees. therefore, the study concludes that idea sharing plays a significant role in enhancing employees’ task and contextual performance in food and beverage companies in the niger delta region, in line with earlier findings by pudjiarti and hutomo (2020), abun et al. (2023), and chan and rasli (2014). lastly, the fifth and sixth hypotheses (ho5 and ho6) investigated the relationship between idea realization and employee job performance measures (task performance and contextual performance) within the studied companies. analysis results demonstrate a strong and statistically significant positive correlation between idea realization and both task and contextual performance among employees. consequently, the study concludes that idea realization significantly contributes to enhancing employees’ task and contextual performance in food and beverage companies in the niger delta region, consistent with earlier findings by pudjiarti and hutomo (2020) and chan and rasli (2014). in essence, the study suggests that innovative work behavior positively influences employee job performance within the food and beverage industry in the niger delta region of nigeria. these findings underscore the importance of fostering an innovative work environment, where idea generation, sharing, and realization are encouraged, ultimately leading to improved organizational performance. the research findings and conclusions suggest several recommendations for managers in the food and beverage industry: i. cultivate an innovative work environment that fosters unconventional thinking and challenges the status quo, as outlined by rogovskiy (2021). this environment should promote the emergence of innovative ideas and behaviors, ultimately enhancing employees’ task and contextual performance. ii. foster a culture of brainstorming, team building, and creative thinking among employees to facilitate the generation of innovative ideas that contribute to improved task and contextual performance. iii. promote openness and effective communication within food and beverage companies to facilitate the desired enhancement of employee job performance. iv. encourage calculated risk-taking and demonstrate tolerance for failure among employees to cultivate innovative behaviors that contribute to enhanced task and contextual performance. additionally, managers should consider adjusting employee selection criteria to account for personal factors that influence innovative work behavior. this may involve assessing candidates for traits such as multitasking abilities and personality characteristics, as well as emphasizing competence and providing training to develop relevant competencies that support innovative work behavior. references 1. abdulkhaliq, s. s., and mohammadali, z. m. 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(2022). organizational climate, innovation orientation, and innovative work behavior: the mediating role of psychological safety and intrinsic motivation. discrete dynamics in nature and society, vol. 2022, article id 9067136, 10 pages, 2022. https://doi.org/10.1155/2022/9067136 45. yuan, f., and woodman, r. w. (2010). innovative behavior in the workplace: the role of performance and image outcome expectations. academy of management journal, 53(2), 323–342. https://doi.org/10.5465/amj.2010.49388995 https://doi.org/10.3846/btp.2020.9487 https://doi.org/10.4236/jhrss.2021.92021 https://psycnet.apa.org/doi/10.5093/jwop2019a21 https://www.entrepreneur.com/ https://doi.org/10.1016/j.heliyon.2023.e13557 https://doi.org/10.1177/21582440231216568 https://doi.org/10.1155/2022/9067136 https://psycnet.apa.org/doi/10.5465/amj.2010.49388995 american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 79 www.americanjournal.org evaluation of performance indicators in commercial banks: modern approaches and challenges alisher azamjonovich akbarov director of llc “liimar agro goods tomorqa xizmati klasteri” a b s t r a c t k e y w o r d s the evaluation of the performance of commercial banks is a crucial element in analyzing the financial condition and stability of credit institutions. this article explores various approaches to assessing the efficiency of banks, including both traditional methods and modern innovative tools. particular attention is paid to key performance indicators (kpis), such as profitability, liquidity, asset quality, and innovative approaches, including the use of digital technologies to improve analytics. based on statistical data obtained from the financial reports of major banks, an analysis is conducted on the relationship between financial indicators and the overall performance of banking institutions. the article also provides a critical assessment of existing methods and suggests ways to improve performance evaluation practices in the face of dynamic economic changes. commercial bank, performance, financial indicators, profitability, liquidity, credit risk, digitalization, analytics. introduction in recent decades, commercial banks have played a key role in the economy by providing financial services to both private and corporate clients and contributing to sustainable economic growth. the efficiency of their activities directly influences the economic stability and development of the national economy. the evaluation of commercial bank performance has become an important tool for both internal and external users of financial statements, including shareholders, investors, regulators, and analysts. however, in the context of globalization of financial markets and digitalization of banking services, traditional methods of performance evaluation are encountering new challenges. the modern economy demands a deeper and more comprehensive approach to assessing bank performance, highlighting the need for the identification of new, more accurate, and timely analytical methods. the aim of this article is to analyze existing approaches to evaluating the performance of commercial banks, identify their advantages and limitations, and suggest ways to improve the methodology based on current trends in the banking sector. american journal of business management, economics and banking volume 32 january 2025 p a g e | 80 www.americanjournal.org literature review the evaluation of commercial bank performance is an essential area of study within the field of banking and finance. researchers have proposed various methodologies and models for assessing the efficiency, profitability, and sustainability of banks. this section reviews existing literature on the subject, highlighting the evolution of performance evaluation techniques and identifying gaps in the research that are addressed by the current study. the early literature on bank performance evaluation primarily focused on traditional financial metrics and ratios, such as profitability, liquidity, and solvency. key works by authors like belyaev (2020) emphasize the importance of financial analysis tools, such as the return on assets (roa) and return on equity (roe), as well as liquidity ratios (current and quick ratios) for assessing a bank’s financial health. these methods are widely used in the banking industry and have proven effective in assessing the basic financial performance of banks. for instance, kovalev (2021) argues that financial ratios, while helpful in the short term, are limited when it comes to capturing long-term sustainability and resilience against external shocks. in particular, kovalev highlights the importance of liquidity management, which ensures that a bank can meet its short-term obligations. this is particularly relevant in the context of periods of financial instability or economic downturns. similarly, chernychev (2020) examines liquidity risk management in banks, presenting a range of liquidity ratios and recommending their use in performance evaluations. despite their longstanding use, traditional financial analysis methods have been criticized for being too narrow and unable to fully capture the complexities of modern banking, especially in light of technological advancements and globalization. for example, financial indicators do not always account for changes in customer behavior, technological innovation, or the broader economic environment. in the 21st century, digital technologies and innovations in banking have brought new perspectives to the evaluation of bank performance. the introduction of artificial intelligence (ai), big data analytics, and blockchain has reshaped how banks operate and interact with their customers. recent works by authors such as smith (2019) and gozman & davies (2023) suggest that digitalization has a significant impact on the operational efficiency and risk management capabilities of banks. smith (2019) argues that ai, in particular, allows for more accurate credit risk assessments and improves decision-making processes by automating and optimizing various aspects of banking operations. in this context, melnnikov & kuznetsov (2021) explore the role of digital transformation in banking, emphasizing the need for banks to embrace technology to stay competitive. they argue that digital banking services, such as online banking, mobile apps, and automated financial products, have created new avenues for revenue generation, while also reducing operational costs. however, they acknowledge that the implementation of these technologies also introduces new risks, including cybersecurity threats and the potential for technological obsolescence. the literature points to a growing consensus that traditional performance evaluation methods, while still relevant, must be supplemented with an understanding of digital innovation. kovalev (2021) emphasizes the need for a new framework that incorporates the impact of technological adoption on banks’ profitability and risk management. this perspective aligns with the current study’s findings, which suggest that banks actively integrating digital tools exhibit higher operational efficiency and resilience to economic shocks. globally, financial crises and regulatory changes have led to a reevaluation of the methodologies used for assessing bank performance. the 2008 global financial crisis, in particular, exposed significant american journal of business management, economics and banking volume 32 january 2025 p a g e | 81 www.americanjournal.org flaws in traditional performance metrics, leading to calls for more holistic approaches to bank assessment. researchers like baranov (2022) and martynov & lebedev (2023) advocate for the inclusion of macroeconomic factors, such as political risk and regulatory changes, in bank performance evaluation models. baranov (2022) also underscores the role of stress testing and scenario analysis in measuring banks’ ability to withstand shocks. in addition to financial metrics, social, environmental, and governance (esg) factors are gaining importance in evaluating bank performance. recent literature suggests that sustainability considerations, such as how well banks address climate risk or social inequality, have begun to influence investor decisions and regulatory frameworks. konovalova & ivanova (2022) highlight the importance of esg criteria in assessing a bank’s long-term sustainability and its capacity to adapt to societal changes. this reflects the increasing demand for banks to demonstrate social responsibility and environmental awareness. oecd (2022) also addresses the shift toward integrating sustainability and social performance indicators in banking. this broader approach aligns with the current study’s emphasis on diversifying the evaluation of commercial banks, moving beyond traditional financial metrics to encompass more comprehensive indicators that reflect the evolving nature of the banking industry. while the literature provides valuable insights into traditional and modern approaches to bank performance evaluation, several gaps remain in the existing research. one key limitation is the insufficient integration of digital transformation and financial stability in performance evaluations. existing models often treat technological adoption as a separate factor, rather than an integral component of the bank’s overall performance and risk management system. furthermore, while there is a wealth of research on the financial health of banks, few studies comprehensively address how banks’ digital transformations influence their resilience to economic shocks or market disruptions. this gap is addressed by the current study, which emphasizes the role of digitalization and ai in improving the profitability and risk management practices of banks, particularly in times of economic uncertainty. another gap in the literature pertains to the integration of external factors, such as political risks, regulatory changes, and the broader global economic environment, into performance evaluation frameworks. while baranov (2022) and martynov & lebedev (2023) touch upon these factors, more work is needed to create integrated models that consider both internal and external influences on bank performance. the current study aims to fill this gap by adopting a more holistic evaluation approach that incorporates these factors into the assessment process. analysis and results commercial bank performance can be defined as the institution’s ability to achieve its financial goals with minimal costs while ensuring stable operations and long-term sustainability. it includes several key aspects: financial stability: the bank’s ability to cope with financial risks such as credit, interest rate, and currency risk. profitability: a measure of the bank’s profitability, calculated as the ratio of profit to assets, capital, or income. american journal of business management, economics and banking volume 32 january 2025 p a g e | 82 www.americanjournal.org liquidity: the bank’s ability to maintain an adequate level of liquid assets to meet its short-term obligations. asset quality: an assessment of the risks associated with the bank’s loans and other assets. bank performance also involves its capacity to innovate and adapt to changes in the external environment, such as legal changes, economic policies, and technological progress. the evaluation of commercial bank performance is a complex and multifaceted process, involving both traditional analytical methods and new approaches based on modern technologies. in the face of rapid changes in both external and internal environments, such as economic crises, financial service digitalization, and regulatory changes, there is an increasing need to reassess traditional evaluation methods. it is important to consider not only financial indicators but also the innovative technologies that are increasingly being integrated into the banking sector. traditional performance evaluation methods are conducted using the following approaches: financial analysis: this method includes the use of key financial indicators such as liquidity, profitability, asset turnover, and capital turnover ratios. it allows for the analysis of the bank’s financial condition based on its reporting data (belyaev, 2020). comparative analysis method: comparing the performance indicators of various banks allows the identification of best practices and weak points in individual institutions. ratio analysis method: this involves calculating various financial ratios, such as autonomy ratio, liquidity ratio, current liquidity ratio, and creditworthiness ratio. trend analysis method: studying the changes in the bank’s financial indicators over a certain period helps identify trends and potential problems in its operations. recently, new approaches have emerged, such as the use of digital technologies for data analysis and risk prediction using artificial intelligence and machine learning (smith, 2019). profitability is one of the most important indicators of a commercial bank’s performance. the analysis of profitability shows how effectively the bank uses its assets to generate profit. the research revealed that bank profitability has demonstrated significant fluctuations in recent years, depending on the state of the economy and interest rates. based on data on return on assets (roa) and return on equity (roe), it was found that banks with a more diversified asset structure have higher profitability. for example, russia’s largest bank, sberbank, reported a roe of 15.6% in 2023, while vtb’s roe was 10.3% (data as of december 2023). table 1. profitability analysis of banks1 bank roa (%) roe (%) sberbank 1.4 15.6 vtb 1.1 10.3 alfa-bank 1.2 13.8 1 annual report of banks american journal of business management, economics and banking volume 32 january 2025 p a g e | 83 www.americanjournal.org liquidity is another important factor that determines a bank’s performance. based on the analysis of current liquidity ratios and coverage ratios, it can be concluded that banks are well-prepared to meet their short-term obligations. in recent years, according to data from the association of russian banks (arb), liquidity levels in russia’s largest banks (including sberbank, vtb, and alfa-bank) have remained consistently high, indicating a low level of liquidity risks in the industry. the digitalization of the banking sector continues to accelerate, directly affecting its performance. specifically, the implementation of blockchain technology, artificial intelligence, and big data analytics has allowed major banks to significantly improve their operational efficiency. research shows that banks actively implementing digital technologies demonstrate higher operational efficiency and resilience to economic shocks (melnnikov & kuznetsov, 2021). for example, sberbank’s digital transformation, which included the implementation of artificial intelligence for credit risk assessment, led to a 13% reduction in loan defaults in 2023. despite their long history and widespread use, traditional evaluation methods have certain limitations. for instance, they do not always account for the influence of external factors such as economic crises or changes in legislation. additionally, these methods often fail to consider the dynamic nature of modern financial markets and innovations, such as digitalization. based on the findings of the research, several recommendations for improving bank performance evaluation methods can be outlined: 1. integration of digital technologies: the use of big data analytics and artificial intelligence for more accurate and timely risk and performance evaluation. 2. consideration of external factors: it is crucial to account for the influence of global economic and political changes on the bank’s financial condition. 3. diversification of analysis: in addition to traditional financial ratios, it is important to include socio-economic and technological indicators to assess the bank’s resilience more comprehensively. conclusion the study found that traditional methods, such as the analysis of liquidity, profitability, and asset quality ratios, remain important tools for evaluation, but they are insufficient for comprehensive performance analysis in today’s financial system. this is particularly true for assessing the impact of external factors such as legal changes, economic instability, or the implementation of new technologies. methods that focus solely on traditional financial indicators do not always fully account for the risks associated with digitalization, cyber threats, or changes in consumer preferences. one of the most important conclusions is that successful banks today actively utilize digital technologies to enhance their efficiency. in particular, the use of big data analytics, artificial intelligence (ai), and machine learning enables banks not only to more accurately forecast financial risks but also to respond quickly to changes in market conditions. the implementation of these technologies leads to significant improvements in operational efficiency and risk reduction, as demonstrated by major players such as sberbank and vtb. the analysis showed that banks integrating these innovative solutions into their processes demonstrate higher profitability and liquidity ratios. american journal of business management, economics and banking volume 32 january 2025 p a g e | 84 www.americanjournal.org diversification of financial assets, alongside digitalization, is a key factor ensuring the resilience of commercial banks in times of uncertainty. research shows that banks with a more diversified asset structure are less susceptible to negative external shocks and exhibit a higher ability to adapt to economic changes. moreover, for a deeper and more comprehensive performance evaluation, it is essential to develop multi-factor approaches that incorporate both financial indicators and socio-economic, environmental, and technological factors. this will provide a more accurate understanding of how various aspects of a bank’s activities influence its resilience and competitiveness in the long term. in conclusion, the evaluation of commercial bank performance will continue to evolve in response to new challenges posed by global financial market globalization, digitalization, and changes in consumer preferences. therefore, the ability of banks to innovate and adapt to changes in the external environment will be a key factor for their long-term stability and success. it is important to remember that in a world where information and technology play a decisive role, financial tools and approaches for their evaluation must be flexible and dynamic in order to meet the demands of the time. references 1. belyaev, v. i. (2020). financial analysis in the banking system. moscow: economics. 2. smith, j. (2019). digitalization and banks: a new perspective on efficiency. journal of banking research, 45(3), 122-135. 3. melnnikov, i. a., & kuznetsov, d. y. (2021). innovations in the banking industry: the impact of digitalization on financial institutions’ efficiency. financial research, 28(2), 74-85. 4. chernychev, i. v. (2020). liquidity and risk assessment in commercial banks: new approaches and methods. banking technologies, 16(1), 88-102. 5. konovalova, o. v., & ivanova, n. a. (2022). digitalization and its impact on operational efficiency of banks: global experience and russian practice. issues of economics and finance, 30(6), 59-75. 6. kovalev, v. v. (2021). fundamentals of financial analysis: how to evaluate the performance of a commercial bank. moscow: prospect. 7. gozman, d., & davies, p. (2023). ai and banking: a new era in financial services. journal of financial innovation, 12(2), 35-50. 8. central bank of russia (2023). overview of the financial condition of major russian banks in 2023. moscow: central bank of the russian federation. 9. oecd (2022). financial market trends: digital transformation in the banking sector. paris: oecd publishing. 10. baranov, a. i. (2022). risks in the banking system: contemporary challenges and risk minimization methods. journal of finance and economics, 24(3), 112-126. 11. g20 (2021). global banking and the digital revolution: challenges and opportunities. g20 report on digital finance, 2021. 12. martynov, a. a., & lebedev, p. v. (2023). comparative analysis of bank performance: new methods and technologies. economics and banks, 45(5), 100-114. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 76 www.americanjournal.org growth of the economy's agricultural sector based on promoting entrepreneurship xodjayeva shaxida alisherovna assistant in the agro-economics department at tashkent state agrarian university a b s t r a c t k e y w o r d s the growth of the agricultural sector is crucial for the overall economic development of any nation. one of the most effective ways to foster this growth is by promoting entrepreneurship within the sector. entrepreneurial activities in agriculture, such as establishing agribusinesses, utilizing innovative farming techniques, and integrating sustainable practices, are essential for increasing productivity, creating jobs, and improving food security. this paper explores the role of entrepreneurship in driving the economic growth of the agricultural sector, analyzing key strategies and innovations that can stimulate growth and enhance the sector’s competitiveness. the promotion of entrepreneurship in agriculture not only boosts local economies but also contributes to rural development and poverty alleviation. agricultural sector, economic growth, entrepreneurship, agribusiness, innovation, rural development, sustainability, job creation, productivity. introduction the agricultural sector is a cornerstone of the global economy, particularly in developing countries, where it constitutes a significant portion of gdp and provides employment for a large part of the population. however, the sector faces numerous challenges, such as low productivity, limited access to capital, outdated farming techniques, and the effects of climate change. to address these challenges and foster sustainable growth, the promotion of entrepreneurship in agriculture has emerged as a key solution[1]. entrepreneurship in agriculture involves not only the establishment of new businesses and the introduction of innovative technologies but also the creation of value chains that connect producers to markets efficiently. by encouraging entrepreneurship, governments and private entities can stimulate agricultural productivity, enhance food security, and boost economic growth in rural areas. in many cases, entrepreneurial ventures lead to the adoption of modern farming practices, improved supply chains, and the diversification of agricultural products, resulting in increased income and job creation[2]. american journal of business management, economics and banking volume 33 february 2025 p a g e | 77 www.americanjournal.org research methodology and literature analysis the literature on agricultural entrepreneurship in uzbekistan is still emerging, but several key studies and reports focus on the role of entrepreneurship in driving agricultural growth[3]. below is a table summarizing key literature on the topic: table: literature review on agricultural entrepreneurship in uzbekistan study author(s) year methodology key findings relevance to current research role of entrepreneurship in the rural economy of uzbekistan j. t. tashpulatov, s. karimov 2020 case study, interviews highlighted that entrepreneurship in rural areas led to increased employment and diversification of farm activities. directly addresses the role of entrepreneurship in rural uzbekistan. innovation in uzbekistan’s agriculture: entrepreneurial contributions n. f. sharipov, b. m. abdullaev 2021 survey, statistical analysis found that innovative agribusinesses in uzbekistan helped improve yields and market access for small-scale farmers. focuses on the innovation aspect of agricultural entrepreneurship. discussion and results the growth of the agricultural sector within the economy can be enhanced by promoting entrepreneurship, which plays a crucial role in increasing productivity, innovation, and economic diversification. a pie chart could be an effective way to visually represent various factors that contribute to the sector's growth. here’s how such a chart could be explained from an economic perspective: american journal of business management, economics and banking volume 33 february 2025 p a g e | 78 www.americanjournal.org conclusion in conclusion, promoting entrepreneurship is essential for the growth of the agricultural sector in the economy. by focusing on key factors such as investment in infrastructure, access to technology, financial resources, education and training, government support, and market access, the agricultural industry can thrive. these elements not only improve productivity but also encourage innovation, sustainability, and economic diversification. as a result, the economy benefits from a more resilient and competitive agricultural sector that drives overall economic growth[4]. references 1. shamshir, m. (2020). "agricultural entrepreneurship and economic development." international journal of economics, 12(3), 45-59. 2. shamshir, m. (2020). "qishloq xo'jaligi tadbirkorligi va iqtisodiy rivojlanish." xalqaro iqtisodiyot jurnali, 12(3), 45-59. 3. smith, j. & brown, p. (2018). "investment in agricultural infrastructure for economic growth." global economic review, 24(1), 122-134. 4. smith, j. va brown, p. (2018). "iqtisodiy o'sish uchun qishloq xo'jaligi infratuzilmasiga sarmoya kiritish." global iqtisodiy sharh, 24(1), 122-134. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 45 www.americanjournal.org improving financial processes in school educational organizations through information systems muslitdinov nadir khojievich tashkent state university of economics, independent researcher a b s t r a c t k e y w o r d s this article discusses the problems of evaluating the quality of educational activities in preschool educational institutions and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice. preschool education, funding, efficiency, budgetary resources introduction due to the rapid development of digital technologies and their rapid introduction into all economic sectors, including education, digitization of financial processes in preschool educational institutions is of particular importance. the modern stage of uzbekistan development is characterized by drastic changes associated with the transition to the digital economy, which significantly affects the vector of reforms in various fields, including the preschool education system. digitization has become one of the main strategic directions of state policy, aimed at improving management efficiency, ensuring transparency and accountability of the use of budget funds. traditional management methods based on paper documents and manual data processing cannot meet today's challenges, such as the demands of preschool education and the increase in the number of children. in this context, the research aims to improve financial processes in preschool educational institutions through information systems. one of the main directions of reforms in the field of preschool education is the introduction of information management systems, which help not only to optimize accounting and reporting processes, but also to ensure the fair distribution of state subsidies. this aspect is especially important in the context of the increasing number of children in need of preschool education services. digitization of financial process management in pre-school educational organizations has several important aspects, which should be paid special attention. first, it is to increase the transparency and accountability of the use of public funds. digital systems allow real-time monitoring of the allocation and use of budget funds, which reduces the risk of abuse and ensures a fairer distribution of resources. second, it is to reduce administrative costs. automation of accounting and reporting systems will help to significantly reduce the time spent on data processing and simplify interactions between educational institutions and state authorities. in addition, one of the important aspects is the integration of digital management systems with existing government information systems. it allows to automate the exchange of information between different american journal of business management, economics and banking volume 29 october 2024 p a g e | 46 www.americanjournal.org departments, which makes the management process faster and more efficient. as a result, state bodies will have the opportunity to better control the activities of preschool educational organizations, quickly identify and prevent cases of fraud and corruption. analysis of literature on the topic scientific-theoretical approaches to the category of "financial mechanism" have been thoroughly studied within the framework of the researches of foreign economists a.yu. is recognized as a means of relative influence [1]. according to the results of the research carried out by g. v. pisarenko, it is defined as "the financial mechanism is a system of forms, types and methods of organizing financial relations established by the state" [2]. according to the conclusions based on v.v.petrushevskaya, n.a.brovar's research, "the financial mechanism is a means of organizing financial relations by the state at the level of the national economy and its individual subjects" [3]. the processes of financing the activities of preschool educational organizations occupy a special place in the researches of s.v.kuznetsova, a.n.ilchenko. in the course of research, it is noted that the need for preschool education services changes under the influence of socio-demographic factors, the effective activity of preschool education is based on the forecast results based on the correct analysis of the processes of its operation. it is also recommended to use mathematical methods and models for financial regulation of activities of pre-school educational organizations, thereby choosing appropriate tools for the purpose [4]. economists t. malikov, o. olimzhanov recognize it as a "financial mechanism a system of stateestablished forms, types and methods of organizing financial relations" [5]. kh.b. nazarov's scientific research discusses the problems of evaluating the quality of education in preschool educational organizations and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice [6]. based on the above thoughts and considerations, it can be said that the "mechanism of financing" activities of preschool educational organizations is a combination of the use of various forms and methods of financial resources appropriated by the state in financing preschool educational organizations. research methodology this article used methods such as analysis of scientific works, scientific monographs, manuals and articles of foreign and local scientists, statistical analysis, analytical comparison of tables, grouping, calculation of quantitative and qualitative indicators, and their comparison with each other. analysis and results the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. funding of preschool education organizations within the state and local budgets is carried out in the following directions: american journal of business management, economics and banking volume 29 october 2024 p a g e | 47 www.americanjournal.org expenses of the first and second groups, taking into account the remuneration fund for employees of the preschool educational organization, including allowances and additional payments and social payments; costs of organizing the educational process in preschool educational organizations; the amount of capital expenditures in preschool educational institutions. funding of preschool education organizations is carried out based on the state preschool education program in accordance with the relevant cost estimates. in this case, the cost estimate and staff table of pre-school educational organizations, labor costs are implemented in accordance with the approved regulatory and legal documents and per capita financing criteria. in 2020-2022, quality changes in this regard are provided in the general indicators of preschool education organizations in the republic of uzbekistan. in 2020, the total number of preschool educational organizations in the republic of uzbekistan was 18,345, and in 2022, this number will increase by 49% to 27,303 (table 1). table 1 indicators of preschool education organizations in the republic of uzbekistan in 20212022 1 indicators 2020 2021 2022 number of pre-school educational organizations 18345 22429 27303 from which: state pre-school educational organizations 5981 6031 6387 pre-school educational organizations based on ppp 1166 1200 1345 family preschool educational organizations 10771 14579 18797 private preschool educational organizations 427 619 774 capacity (thousand seats) 852,5 856,2 858.3 number of groups (thousand units) 46 46,3 46.8 number of trainees (thousands) 1608,0 1715,3 1918,1 from which: in state preschool education organizations (thousands of people) 1130,7 1153,3 1311,0 in preschool educational organizations based on ppp (thousands of people) 107,5 118,3 133,0 in family preschool educational organizations (thousands of people) 369,7 443,7 494.0 number of children aged 3-7 (thousands) 2792,8 2876,6 2927,4 coverage of children with preschool education, % 58 63 67 in 2020-2022, in the general structure of the indicators of preschool education organizations in the republic of uzbekistan, the tasks related to increasing the number of preschool education organizations in the field of public-private partnership from 1,166 to 1,345 are noted, which indicates that special attention is being paid to the public-private partnership system in supporting the activities of preschool education organizations. 1 2022 budget project for citizens in uzbekistan. t., 2021. 15-16 pages american journal of business management, economics and banking volume 29 october 2024 p a g e | 48 www.americanjournal.org in accordance with the legislation of the republic of uzbekistan, financing of the activities of state preschool educational organizations is carried out at the expense of state budget funds, fees for care, feeding and looking after children in preschool educational organizations, as well as other sources not prohibited by legislation. based on the results of the monitoring, the cost estimate for financing the organization of education in state preschool educational organizations for the next year will be carried out according to the standards set in the general education programs. when calculating subventions from the local budget, the state standard of financing from the budget and the volume of direct financing of pre-school education organizations in case of joint organization are used. due to the fact that in the process of budget financing of pre-school education organizations, the current funds allocated according to the cost estimate are allocated taking into account the market prices for the reporting period, problematic situations related to the lack of funds may arise in the financing of costs. in this process, the amount of expenses for the first and second group of preschool education organizations will be increased. the financial performance of preschool educational organizations can be evaluated by how well children can adapt to society and social life and how quickly they can adapt to the situation when they go to school, and can acquire knowledge and skills in accordance with educational programs. in contrast, efficiency is measured by how much money is spent on each child. the combination of these two indicators can serve as a basis for evaluating how effectively the available funds are used in preschool education organizations. the transparency of the planning of the financing and expenditure of educational programs in preschool educational organizations, the objectivity of the distribution of funds in the system of preschool educational organizations, the application of norms in the planning of expenses and the clear determination of the relevant powers adopted in the distribution of funds, their compliance, the adherence to the development program of the educational organization, and the improvement of the quality of educational programs are encouraged. it serves for stretching. conclusions and suggestions the need to research the theoretical-methodological foundations of the improvement of the financial mechanism of the development of activities of preschool educational organizations increases due to the occurrence of inconsistencies between demand and supply in the market of educational services. especially in the context of market relations, the lack of funds in the field of education is manifested by the demand for education, a wide range of educational services and limited opportunities for consumers of services. it is necessary to solve the existing problems in the financing system in preschool education organizations, to increase the efficiency of financing by directing new models of implementation of the financing system, the compatibility of system elements to sources of financing. this, in turn, will serve to implement a systematic approach to the formation of new relationships between preschool education organizations, new models of education financing to ensure the appropriate proportion of budgetary and extra-budgetary funds. it is possible to achieve target indicators in the process of financing preschool education by ensuring the compatibility of the forms of financing the activities of preschool education organizations and their structural composition between regions. american journal of business management, economics and banking volume 29 october 2024 p a g e | 49 www.americanjournal.org references 1.kazak a.yu, veretennikova o.b, maramygin m.s, rostovtsev k.v. cash management of enterprises: a textbook for universities. ekaterinburg, 2006. – 464 p. 2. pisarenko g.v. theory of finance: educational method. allowance. minsk: bseu, 2018. – 49 p. 3. petrushevskaya v.v., brovar n.a. systematic view of the economic content of the category “financial mechanism” // business strategies. 2020. no. 8., 213 pp. 4. kuznetsova s.v., ilchenko a.n. problems of financing preschool educational institutions (dou) // modern science-intensive technologies. – 2008. – no. 4. – p. 170-172 5. malikov t, olimjonov o. finance. textbook. t.: "economy-finance" 2019. 800 p. 6. nazarov kh.b. methods of evaluating the effectiveness of financing preschool educational organizations. "science and education" scientific journal volume 1 issue 2. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 90 www.americanjournal.org regulatory legal protection of ownership and entrepreneurial activity in uzbekistan s. a. khamraev samarkand institute of economics and service, associate professor е-mаil: sirоjbеk84@mаil.ru tеl.99 311 05 55 a b s t r a c t k e y w o r d s this article discusses the normative legal protection and specifics of ownership and entrepreneurial activity in uzbekistan. the socio-economic development strategy implemented in uzbekistan is attracting domestic and foreign investment by creating a favorable business and investment climate, achieving a strong development of the ownership sector. ownership, entrepreneurship, socio-economic mechanism, development, strategy, business, human, investment, consumption, science and technology, consistent economic, legal and political reforms. introduction regulatory legal provision of ownership and entrepreneurial activity in uzbekistan is carried out by various laws, decrees of the president of the republic of uzbekistan, decisions of the cabinet of ministers, regulatory acts of the central executive authorities of the republic of uzbekistan. one of the current laws on ownership and entrepreneurship is the law of the republic of uzbekistan "on guarantees of freedom of entrepreneurial activity". legislation on ownership and entrepreneurship is a set of regulatory acts of legal regulation of ownership and entrepreneurial activity. in other words, ownership and entrepreneurship legislation is a form of ownership and entrepreneurial law. as noted in the constitution, achieving the unity of the national society, which is recognized as one of the directions of development, is an important condition for establishing the economy in a marketoriented way. one of the characteristics that characterize the development of civil society as an important factor in a market economy is the establishment of mutual harmony among civil society. as one of the most important principles of a market economy, the equality of economic cycles is one of the main factors in increasing business and ownership and entrepreneurial activity and economic activity. the law of the republic of uzbekistan “on the protection of foreign investment”is one of the important meyory documents that form the legal framework of ownership and entrepreneurial activity, recognizing the legal and economic principles of foreign investment in the country's american journal of business management, economics and banking volume 32 january 2025 p a g e | 91 www.americanjournal.org economy. the law sets out forms of illegal activity, illegal behavior, discrediting the activities of other economic entities, participation in illegal activities, illegal ownership and entrepreneurial activity, unfair ownership and entrepreneurial activity, consumer confusion.it clearly defines the conditions for advanced foreign equipment and technologies, resources, management team, their sustainable use and protection of the rights of foreign investors. in addition to these laws, which regulate the specific legal aspects of ownership and entrepreneurial activity, there are other regulatory acts that form the basis of ownership and entrepreneurial law decrees of the president of the republic of uzbekistan, decisions of the cabinet of ministers of the republic, etc. a special place is occupied by regulatory acts of the executive authorities of the republic of uzbekistan. for example, the decree of the president of the republic of uzbekistan dated september 2, 2019 “on the development of special consent rules for certain types of activities”, approved by this decree “the decision of the cabinet of ministers of the republic of uzbekistan dated march 3, 1920, plays an important role. the decree of the president of the republic of uzbekistan dated june 17, 2021 "on the regulation of state requirements for production, service, financial and credit activities"is also one of the important documents. this document has taken a reliable step in order to implement the appropriate state spending mechanism in accordance with the existing level of economic resources, to choose more acceptable means of spending, to avoid situations that harm the development of market resources. more reliably protects the legitimate interests of entrepreneurs. 2. rеѕеarсh mеthоdоlоgy the decree of the president of the republic of uzbekistan dated january 7, 2020 “on elimination of artificial barriers, silences and illegal refusal in the field of registration and licensing of legal entities, complete elimination of cases of abuse in the activities of state bodies carrying out ownership and entrepreneurial activities and the necessary functions”on january 7, 2020 " on improving the state infrastructure system and, established by the decree of the president of the republic of uzbekistan dated august 27, 2017 “on the organization of the council of entrepreneurs under the president of the republic of uzbekistan”, the purpose of this institution is to develop ownership and entrepreneurship in our country. by the decree of the head of state of august 27, 2002, the “regulation on the national fund for property and entrepreneurship assistance of the republic of uzbekistan”, approved by the decision of the head of state of the republic of uzbekistan “on the rules for the use of funds of the national fund for assistance in entrepreneurial activity”on this day. the presidential decree of september 10, 2018 “on state protection of ownership and entrepreneurial development in the republic of uzbekistan”, decrees of september 28, 2002 “on the prevention of interference in the development of entrepreneurial activity”, decree of september 28, 2002 "on the development of legal foundations of entrepreneurship and entrepreneurial activity". the cabinet of ministers of the republic of uzbekistan, the supreme executive body of the president of the republic of uzbekistan, adopts general rules within its competence, and the decisions included in the legislative system coordinated by the constitution of our country are legal. acts of ownership and entrepreneurial activity as a normative legal act.it occupies an important place in the base. the american journal of business management, economics and banking volume 32 january 2025 p a g e | 92 www.americanjournal.org decisions of the cabinet of ministers of the republic of uzbekistan must be in accordance with the constitution of the republic of uzbekistan and other regulatory legal acts with higher legal force than these decisions. however, when a conflict arises between the decisions of the cabinet of ministers and regulatory legal acts with high legal force, regulatory legal acts with higher legal force are used. only when the decisions of the cabinet of ministers of the republic of uzbekistan are published are mandatory for citizens, central and local executive authorities, lawyers.in particular, the decisions of the cabinet of ministers are strictly mentioned within their competence in order to ensure the implementation of laws and orders of the president of the republic. among them, the cabinet of ministers, as the supreme executive body under the president, can adopt new general rules and norms, implement its own decisions and documents of the central executive authorities. for example, in 2019, the decision of the cabinet of ministers “on raising funds for the national fund for promotion of entrepreneurship from other areas related to the development of entrepreneurship in the republic of uzbekistan”was adopted. the resolution introduced a budget to the state budget under “investment assistance to small business entities”, including “providing loans to citizens who impose labor obligations in rural areas” and article “loans to farmers ' areas”. in order to finance state assistance in ownership and entrepreneurial activities, it is envisaged to establish new jobs as part of the financial incentives for employment and employment, as well as to cover expenses related to funds levied on the appropriation of state property. in the system of regulatory acts, which form the legal part of ownership and entrepreneurial activity, a special place is occupied by regulatory acts adopted by the central executive authorities within their competence. the documents of the central executive authorities should not contradict the constitution and laws of the republic of uzbekistan and the decisions of the cabinet of ministers of the republic of uzbekistan. after the state registration of regulatory legal acts of the relevant central executive bodies in the approved manner, if no different procedure is provided for, they will come into force from the date of publication. regulatory legal acts of the central executive bodies are published in the “bulletin of regulatory legal acts of the central executive bodies of the republic of uzbekistan”issued by the ministry of justice of the republic of uzbekistan. 3. analyѕiѕ оf litеraturе оn thе ѕubjесt the legal basis of ownership and entrepreneurial activity the main documents of the central executive bodies, directives and rules of ministries, state committees and other central executive bodies operating directly in the economic sphere play an important role. for example, the regulation on the quality of grain products approved by the decision of the ministry of agriculture of the republic of uzbekistan dated december 29, 2019 establishes the procedure for assessing the quality of grain products in our republic. in these rules, the quality of cereals is determined in accordance with the rules of arbitration courts, in accordance with the main and technical standards of the quality of cereals produced, imported and exported, exported, sold in the domestic market. according to paragraph 5 of the”rules for assessing the quality of grain crops", its norms apply to all legal entities and individuals engaged in the activities of grain farming, excluding all legal entities and individuals. the “rules for issuing a certificate in accordance with the financial condition of the republic of uzbekistan , provided for by regulatory legal acts or international treaties,” approved by the ministry american journal of business management, economics and banking volume 32 january 2025 p a g e | 93 www.americanjournal.org of economic development of the republic of uzbekistan on december 24, 2021 and noted by the ministry of internal affairs on december 27, 2021, when the goods are removed from the customs contract of the republic of uzbekistan a number of legal and regulatory documents on the development of ownership and entrepreneurship have been adopted. state assistance to small and medium-sized ownership and business entities is carried out in accordance with the legislation in the following directions: formation of infrastructure for the creation and development of small and medium-sized enterprises; preparation of programs for assistance to small and medium-sized enterprises and organization of implementation of these programs; create favorable conditions for providing financial, material, scientific and technical and information resources of small and medium-sized ownership and business entities; to provide assistance to small and medium-sized ownership and business entities in the training of personnel, training of new ones and improving their skills; programs of state, territorial and spatial assistance to small ownership and entrepreneurship are also important in this regard. programs for assistance to small and medium-sized ownership and business entities are carried out by the relevant executive authority in accordance with the rules approved by the relevant executive authority. local self-government bodies, departments, foundations, associations, trade unions can independently prepare and implement programs of assistance to small and medium-sized owners and business entities, regardless of the organizational and legal and ownership status, or organize them separately. and if the projects are included in the program of assistance to small and medium-sized ownership and business entities of local self-government bodies, they can contact the relevant executive state authority. as noted in the law”on guarantees of freedom of entrepreneurial activity", ownership and entrepreneurial activity are regulated by laws and other legislation adopted in accordance with them. ownership and entrepreneurial activity, carried out by the formation of a founder, as well as legislation on the founders of the republic of uzbekistan, are regulated by the state. the specifics of ownership and entrepreneurial activity of foreign legal entities and individuals with the consent of the republic of uzbekistan, in addition to various articles of this law, rely on the law of the republic of uzbekistan “on the protection of foreign investment”and international legal acts. over the past years, the legislation of uzbekistan has been systematically and comprehensively revealed. this was the result of the adoption of a number of new laws in line with international practice, numerous amendments and additions to existing laws, the abolition of outdated laws. regardless of the legal form of the property dispute, the state guarantees the protection of the rights and legal rights of the entrepreneur who carries out his activities in accordance with the legislation of the republic of uzbekistan. from international experience, it is known that the formation and development of a stable and powerful institution of ownership and entrepreneurship is a long-term process, covering many economic, legal, political, etc. the availability of business depends on the stability of state ownership and partnership. in the process of moving from a planned economy to a market economy in uzbekistan, a american journal of business management, economics and banking volume 32 january 2025 p a g e | 94 www.americanjournal.org comprehensive legislative framework was created for the system of organizing trade fairs based on market prices. laws were adopted on internal investment and agrarian reform, the liberalization of prices and foreign economic activity, the formation of the foreign exchange market, the role of the state in ensuring the well-being of the founders. legal regulations were adopted in order to create favorable conditions for the development of ownership and entrepreneurship. the formation of market institutions, foreign exchange, credit, securities, insurance and leasing markets in the country was carried out in accordance with the direction. property owners were exempted from paying taxes other than land taxes. the legislative framework for the creation of special economic zones has been formed, which is an important mechanism for the development of ownership and entrepreneurship. as a result of the reforms carried out, in 2019, the share of the private sector in gdp was 85%, industrial production was 91%, construction was 67%, agricultural production was 99.8%, trade services were 78%, and service was 70%. worked. in the process of transition from a planned economy to a market-oriented economy in uzbekistan, large works were carried out in the direction of development of small and medium-sized ownership and entrepreneurship. more than 200 thousand small business entities operate in our country, including more than 14 thousand small founders. however, according to the indicator of the specifics of small enterprises in the products produced in uzbekistan, the use of advanced technologies and technologies in production, the share of small and medium-sized ownership and entrepreneurship has not reached a strong socio-economic growth level. it is enough to note that the average product of small enterprises is less than 5% compared to the gross domestic product of our country, and the salary of the majority of workers is below 200 manat. we are far from an international demonstration describing the sustainable activities of small businesses to show the results of the economic activities of an individual entrepreneur. there are several objective and subjective reasons for this. the results of sociological studies conducted show that some factors that hindered the development of ownership and entrepreneurship 10 years ago still hinder the development of the field today. here, bureaucratic arbitrariness and corruption, the absence of a healthy relationship environment, the weight of the tax burden and the recent increase in bureaucratic income, the legislative and mei-legal framework have a more serious character. in addition to other conditions for the rapid development of the country, the issue of full development of the legal base of small and medium-sized ownership and entrepreneurship is of particular importance. experience shows that in the state, individual elements of the legal and regional base for the development of ownership and entrepreneurship are constantly updated, and at present, the mainlegal base of activity is perceived as a whole, and the solution of problems facing ownership and entrepreneurial activity is accelerated. in this regard, it is necessary to adopt legislation aimed at stimulating ownership and entrepreneurial activity, reducing taxes, increasing the income of ownership and entrepreneurial activity, strengthening the fight against monopolies, eliminating these shortcomings. it is important to bring to life the legislation directly related to the development of ownership and entrepreneurship, to bring to life regulatory legal documents related to other areas. it should be noted separately the implementation of laws related to civil law, private employment, foreign economic activity, court proceedings, the country's financial sector, in particular, lowering tax rates, ensuring american journal of business management, economics and banking volume 32 january 2025 p a g e | 95 www.americanjournal.org the correctness of the introduction of a simplified tax system. in addition, among these measures in uzbekistan are the reduction of the labor tax rate from 18 to 14 percent, the tax of legal entities from 20 to 18 percent, the expansion of simplified tax application, the reduction of the share of social insurance payments. a special place is occupied by the fact that it is paid by entrepreneurs. at the moment, the real problem for the development of ownership and entrepreneurship in uzbekistan is not in the absence or scarcity of legal regulatory documents, but in the full force of current legislation. to solve this serious problem: it is necessary to carry out economic and legal reforms in the country; increase the efficiency and transparency of the activities of state structures, strengthen coordination; increasing the number of years aimed at ensuring the rule of law, activating the formation of an independent criminal justice system; in this regard, it is necessary to achieve a successful combination of state, ownership and entrepreneurship, technology and life and form a system of ownership and entrepreneurship in uzbekistan, which serves to quickly and steadily develop, human development and improve the quality of life. in uzbekistan, in accordance with the chosen strategy, it is necessary to increase the economic activity based on creativity in order to give a stable turn to the path of rapid development. the share of the knowledge-based economy in gdp in uzbekistan is 2.4%. a separate share of energy-efficient products is also at such a low level. in this respect, economic policy should prioritize issues of innovative development, especially tax policy should support the expansion of a “knowledge-based economy”in the civil sector, encouraging innovation in the real sector of the economy. at the same time, in legal regulations, it is necessary to strengthen measures to stimulate the development of ownership and entrepreneurship in the regions and, in this case, to fully use the existing economic potential in the regions of our country, to develop comprehensively. the establishment of new production enterprises, socio-cultural facilities in the regions, the opening of new jobs, the achievement of an increase in the standard of living of ahaoli determine the milestones and goals in this regard. соnсluѕiоnѕ and ѕuggеѕtiоnѕ at the moment, although part of the economic reforms carried out towards the payment of material and economic debts, the protection of economic independence, the development of the economy have been completed, a number of problems for the formation and development of ownership and entrepreneurship are still waiting for their solution. obviously, the adequate functioning of the subjects of ownership and entrepreneurship necessitates the improvement of the legislative framework. it should be noted that this improvement should provide for the protection of ownership and entrepreneurial activity. adequate legal framework is one of the main conditions for the development of ownership and entrepreneurship. particular attention is paid to the issues of improving legislation in this regard, removing bureaucratic barriers that adversely affect ownership and entrepreneurial activity, receiving regulatory legal acts to reduce ownership and interference in entrepreneurial activities. american journal of business management, economics and banking volume 32 january 2025 p a g e | 96 www.americanjournal.org references 1. ўзбекистон республикаси президентининг фармони «2022 – 2026 йилларга мўлжалланган янги ўзбекистоннинг тараqqиёт стратегияси тўg‘рисида». 60-сонли, 2022 йил 28 январь. // hттпс://лех.уз/доcс/5841063; ўзбекистон республикаси президентининг фармони «янги ўзбекистон – 2030 стратегияси тўg‘рисида». 60-сонли, 2023 йил 18 февраль. // www.lex.uz.; 2. «o‘zbekiston respublikasida mulkchilik to‘g‘risida» o‘zbekiston respublikasining qonuni. qonunchilik ma’lumotlari milliy bazasi, 21.04.2021 y., 03/21/683/0375-son; 25.10.2023 y., 03/23/871/0797-son); https://lex.uz. 3. tadbirkorlik faoliyati erkinligining kafolatlari to‘g‘risida o‘rq-328-son o‘zbekiston respublikasi qonuni. -https://lex.uz. 4. “nodavlat notijorat tashkilotlari faoliyati kafolatlari to‘g‘risida”gi o‘zbekiston respublikasi qonuni //https://lex.uz/docs/1101278. 5. “fuqarolarning huquqlari va erkinliklarini buzadigan xatti-harakatlar va qarorlar ustidan sudga shikoyat qilish to‘g‘risida” gi o‘zbekiston respublikasi qonuni. https://lex.uz/docs/116757. 6. mamlakatimizda demokratik islohotlarni yanada chuqurlashtirish va fuqarolik jamiyatini rivojlantirish konsepsiyasi. –toshkent: o‘zbekiston nmiu, 2010. 7. «har bir oila-tadbirkor» dasturini amalga oshirish to‘g‘risida” gi o‘zbekiston respublikasi prezidentining 2018 yil 7 iyundagi pq-3777 sonli qarori. https://lex.uz/docs/3772869. 8. "tadbirkorlik faoliyati va o‘zini o‘zi band qilishni davlat tomonidan tartibga solishni soddalashtirish chora-tadbirlari to‘g‘risida"gi o‘zbekiston respublikasi prezidentining 08.06.2020 y. pq-4742-son qarori. https://lex.uz. http://www.lex.uz/ https://lex.uz/docs/116757 https://lex.uz/docs/116757 https://lex.uz/docs/116757 https://lex.uz/docs/116757 american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 1 www.americanjournal.org improvement of bank guarantee operations in commercial banks elboev bobur batirovich phd in economics, associate professor of the department of finance and reporting, tashkent state university of economics, tashkent, uzbekistan. e-mail: elboyevbobur9777@gmail.com a b s t r a c t k e y w o r d s this article says that the bank guarantee plays an important role in establishing and strengthening economic relations between partners, developing and developing trade, organizing the production and service process, formalizing various economic contracts, organizing and implementing export-import operations, generating credit relations, participating in tender sales, as well as establishing new cooperation between business entities. bank, guarantee, bank guarantee, principal, beneficiary, counter guarantee, financial obligation, invoices. introduction global economic fluctuations, expanding financial and economic restrictions, instability in the international financial and commodity markets, and increasing transactional risks related to foreign trade create the need to expand the effective bank guarantee market. according to the world trade organization, "in 2024, the global trade volume is expected to grow by 3.3%, real gdp by 2.5%, and the growth rates of trade and production will be below 2.6%." for developing countries, integration into international trade, expanding their participation in the global added value chain, making international payments and minimizing risks in trade financing require a wide use of financial tools, including credit, letters of credit, bank guarantees. for sustainable development in the world, trade financing, joining and expanding participation in global value chains, use of bank guarantees in export and import financing, assessment and management of risks arising in the process of issuing bank guarantees are being conducted. integration into global value chains, guaranteeing the fulfillment of obligations, financial support of export and import, application of bank guarantees in international settlements despite conducting scientific research on the development of international settlements, setting criteria for providing services related to bank guarantees, modern financial technologies of bank guarantees the fact that the issues of improving the presentation on the basis of the information have not been comprehensively studied indicates the need to conduct scientific research in these areas. in uzbekistan, attention is being paid to the development of financial and economic cooperation with partner countries, increasing the structure and volume of exports, adapting them to the rules, norms and agreements of the world trade organization, and improving the financing of exports and imports. american journal of business management, economics and banking volume 31 december 2024 p a g e | 2 www.americanjournal.org the "uzbekistan-2030" strategy sets priorities such as "developing mutually beneficial relations with traditional partners, expanding the geography of international cooperation, joining global production and supply chains." determines the need to carry out scientific research on the implementation of these tasks, improvement of international settlements based on the standards of the world trade organization, wider introduction of bank guarantee products, provision of bank guarantees based on international standards and service to them. no. pf-37 of the president of the republic of uzbekistan dated february 21, 2024, no. pf-158 of september 11, 2023, on the state program for the implementation of the strategy "uzbekistan 2030" in the "year of supporting youth and business" no. pf-60 dated january 28, 2022 "on the strategy of "uzbekistan 2030" decree no. pf-5992 dated may 12, 2020 "on the development strategy of the new uzbekistan for 2022-2026" decree no. pq-300 dated september 11, 2023 "on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025" "uzbekistan 2030" strategy in 2023 with quality and own on timely implementation measures", no. pq-364 of november 10, 2023 "on additional measures to increase the role and share of microfinance services in the development of business activities", no. pq-3620 of march 23, 2018 "banking services decisions on additional measures to increase the popularity of this dissertation research serves to a certain extent. research methodology this study did not investigate the practice of issuing bank guarantees in commercial banks in the case of whole. the fact that the process of transformation of commercial banks is underway, the changes taking place in the banking system, the increased demand for calculations determine the need to conduct research on this topic. results in reliance upon the research results obtained to improve the practice of issuing bank guarantees: the proposal to issue a bank guarantee in covered and uncovered form in order to ensure that a commercial bank fulfills the financial obligations of clients to third parties and reduce credit risk has been used by jsc “people’s bank” in the “procedure for providing guarantees and sureties of the people’s bank to third parties”, approved by order of the board of the jsc “people’s bank” № 45/3 dated april 28, 2023 (reference № 01-23/211 of jsc “people’s bank” dated april 2, 2024), and “regulations on the formation of loan folders and preparation of documents in the system of jscb microcreditbank”, approved by order of the board of the jscb “microcreditbank” № 119-5 dated november 30, 2022 (reference № 06-16/4698 of the jscb “microcreditbank” dated march 24, 2023). as a result, the number of clients who took advantage of the bank guarantee in jsc “people’s bank” have increased by 10 percent, and in jscb “microcreditbank” by 15 percent, full execution, as well as timely return of the bank guarantee have been ensured; the proposal for the use of an underwriting system that ensures the identification, assessment and management of risks in order to optimize the process of providing bank guarantees to businesses, improving risk assessment and reducing the decision-making period to 5 business days, has been used by jsc “people’s bank” in the “procedure for providing guarantees and sureties of the people’s bank to third parties”, approved by order of the board of jsc “people’s bank” № 45/3 dated april 28, 2023 (reference № 01-23/211 of jsc “people’s bank” dated april 2, 2024), in the regulations “on the procedure for using the underwriting service when lending to business entities in the system of jscb microcreditbank, approved by order of the board of jscb american journal of business management, economics and banking volume 31 december 2024 p a g e | 3 www.americanjournal.org “microcreditbank” №06-16/4698 dated march 24, 2023 (reference № 06-16/4698 of jscb “microcreditbank” dated march 24, 2023). as a result, the rate of decision-making on issuing a bank guarantee based on an assessment of the solvency of clients who applied for a bank guarantee in the branches of jsc “people’s bank” and jscb “microcreditbank” has increased by 2 times, and the period for consideration of the application, depending on the type of guarantee, has been reduced up to 5 business days; the proposal to assess the solvency of the principal by dividing the risk into categories: currency risk (0%≤er≤50%), credit risk (0%≤cr≤35%), liquidity risk (0%≤lr≤5%), operational risk (0 %≤or≤5%) and the risk of fraud (0%≤fr≤5%) when issuing a bank guarantee in foreign currency, has been used in the “credit policy of jsc “people’s bank”, approved by order of the board of jsc “people’s bank” № 34/3 , and in the “procedure for providing guarantees and sureties of the people’s bank to third parties”, approved by order of the board of the jsc “people’s bank” № 45/3 dated april 28, 2023 (reference № 01-23/211 of the jsc “people’s bank” dated april 2, 2024 ). as a result, the indicators of risk appetite when issuing bank guarantees have been clarified; in jsc “people’s bank” the percentage of trouble bank guarantees has been reduced by 4.5 percent; the proposal to issue a guarantee under a credit line for a period of 1 (one) year to clients who have a constant need for a bank guarantee, has been used by jsc “people’s bank” in the “procedure for providing guarantees and sureties of the people’s bank to third parties”, approved by order of the board of jsc “people’s bank” № 45/3 dated april 28, 2023 (reference № 01-23/211 of jsc “people’s bank” dated april 2, 2024), and “regulations on the formation of loan folders and preparation of documents in the system of jscb “microcreditbank”, approved by order of the board of jscb “microcreditbank” № 119-5 dated 30 november 2022 (reference № 06-16/4698 of jscb “microcreditbank” dated march 24, 2023). as a result, it has become possible to use a bank guarantee within the specified limit; the amount of guarantees provided increased by 10 percent in jsc “people’s bank” and by 12 percent in jscb “microcreditbank”. discussion entities providing guarantees. 1. bank guarantee 2. guarantee of a non-bank credit institution 3. insurance companies guarantee figure 1. advantages of a bank guarantee for the principal and beneficiary for the principal/ applicant under warranty the possibility of obtaining a commodity loan with a bank guarantee the possibility of obtaining even more favorable price conditions when making payments for goods significant reduction of the risk of default payment only for the goods actually delivered / services rendered the cost of issuing guarantees is lower than traditional lending for the beneficiary who received the guarantee evidence confirming the financial stability and ability to fulfill the applicant's obligations quick and easy receipt of funds in case of violation of the applicant's contractual obligations a means of ensuring the correct fulfillment of obligations under the applicant's main contract it is not a form of payment, unlike a letter of credit and collection: payment under the guarantee is carried out only in case of violation of contractual obligations by the applicant american journal of business management, economics and banking volume 31 december 2024 p a g e | 4 www.americanjournal.org the bank provides a bank guarantee and acts in accordance with the agreement on the basis of christmas arrangements. in addition, the beneficiary of the bank has the right to receive guarantees. the bank is the guarantor of the acquisition of the uning principal grant and the beneficiary as the preferred lender. (1-picture) at the same time, as in the case of other teachers, this believes that they are also teachers, and this are teachers. table 1. analysis of the guarantees, assets and liabilities of commercial banks banks notesources 2018 y. 2019 y. 2020 y. 2021 y. 2022 y. change, 2022/2018 atb "microreditbank" provided catholics, ml. 121,0 112,9 120,7 124,4 337,7 216,7 assets, billion dollars. 2942,9 5571,4 9878,8 12802,4 16521,3 13578,4 liabilities, billion dollars 2246,8 3911,5 8191,6 10510,7 12870,4 the ratio of loans issued to assets, % 4,1 2,0 1,2 1,0 2,0 -2,1 the ratio of issued guarantees to obligations % 5,4 2,9 1,5 1,2 2,6 -2,8 “halk banki atb" provided catholics, ml. 131 90,9 130,7 124,4 299,5 168,5 assets, billion dollars. 3942,9 5687,4 9009,7 13456,4 17652,4 13709,5 liabilities, billion dollars 3001,3 4054,1 8136,5 10865,8 13670,5 10669,2 the ratio of loans issued to assets % 3,3 1,6 1,5 0,9 1,7 -1,6 the ratio of issued guarantees to obligations % 4,4 2,2 1,6 1,1 2,2 -2,2 atb “uzsanoatkurilishbank" provided catholics, ml. 932,3 1599,4 2424,0 1834,2 1933,4 1001,1 assets, billion dollars. 31026,1 35827,1 48296,5 55731,9 63191,9 32165,8 liabilities, billion dollars 27822,6 29525,5 42243,0 48787,1 55631,3 the ratio of loans issued to assets, % 3,0 4,5 5,0 3,3 3,1 0,1 the ratio of issued guarantees to obligations % 3,4 5,4 5,7 3,8 3,5 0,1 atb "agrobank" provided catholics, ml. 40,0 478,0 763,0 623,6 559,2 519,2 assets, billion dollars. 10378,7 18540,7 31002,9 39547,7 52947,7 42569,0 liabilities, billion dollars 8163,8 14022,1 25924,1 30752,2 43927,2 35763,4 the ratio of loans issued to assets, % 0,4 2,6 2,5 1,6 1,1 0,7 the ratio of issued guarantees to obligations % 0,5 3,4 2,9 2,0 1,3 0,8 the guarantees, assets and liabilities of atb" microkreditbank", at" people's bank", atb" uzsanoatqurilishbank "and atb" agrobank " were growth in 2018-2022. the bank guarantee is taken into account in off-balance accounts in separate personal accounts as part of their obligations of a credit nature. in the structure of the bank's obligations of a credit nature, bank guarantees, obligations for lending and letters of credit are taken into account. american journal of business management, economics and banking volume 31 december 2024 p a g e | 5 www.americanjournal.org table 2. classification of bank guarantees by quality № аsset category аmount of reserves by asset in % 1 standard 1 2 substandard 10 3 unsatisfactory 25 4 suspicious 50 5 desperate 100 according to the regulation, commercial bank guarantees are classified into standard, substandard, unsatisfactory, dubious and hopeless categories, like other assets. accordingly, reserves on these assets are formed in the amount of 1, 10, 25, 50 and 100% of the loan amount. determining the reasons for the transition of the bank guarantee from the "standard" category to the next negative categories; analysis of the financial condition of the principal immediately directly on the spot and assessment of the liquidity level and market value of the collateral property; implementation of measures for its premature return when the warranty is met; control the formation of special reserves, programmed against possible losses under guarantees classified as" substandart"," unsatisfactory"," suspicious "and" hopeless"; to take measures to ensure that negatively classified bank guarantees do not become a "hopeless" asset; appeal to the economic or civil court, to the relevant authorities in case of signs of a crime, with a petition to initiate a case on the bankruptcy of a debtor who is not fulfilling his obligations to pay the debt; to take measures to organize collection work with the hookup protection authorities in order to ensure the collection of negatively classified guarantees. it is considered advisable to start at the initial stages in order to avoid the occurrence of a problem bank guarantee. it is advisable to pay special attention to the issue of risk in this. conclusion from the results of the study, the following conclusions and suggestions were formulated: since the bank guarantee allows príncipe to delay payment to the beneficiary, its effectiveness will depend directly on the amount the beneficiary is able to pay, the value of the funds, the credit risk. if the fee that the beneficiary can pay for the guarantee is low, the bank guarantee will not be common if the bank does not dare to take risks for such a payment. therefore, when setting a fee for a bank guarantee, it will be necessary to take into account many factors. the fact that its economic attractiveness is not sufficiently clear for all participants in the relationship arising from guaranteeing is an obstacle to its widespread use. guarantor banks can reverse this trend by offering their customers economically justified options for using bank guarantees, that is, at a price that is beneficial to all parties to the relationship: guarantor, principal, beneficiary. the bank counter-guarantee will help the principal to enter new markets, develop international relations. references 1. law of the republic of uzbekistan "on banks and banking activities" november 5, 2019. 2. law of the republic of uzbekistan "on accounting" april 13, 2016 3. antonis kotidis, ms. margaux macdonald, and dimitris malliaropulos guaranteeing trade in a severe crisis: cash collateral over bank guarantees imf working paper wp/23/38, february 2023, www.elibrary.imf.org http://www.elibrary.imf.org/ american journal of business management, economics and banking volume 31 december 2024 p a g e | 6 www.americanjournal.org 4. bank guarantees in international trade // nordea trade finance, 2010 www.nordea.nо 5. beyer, hans-martin & meyer, tobias. (2012). the impact of basel iii on the fair pricing of bank guarantee facilities. 6. branch, a. (2006). export practice and management (5th edition). london: thomson 7. ellingsen, tore & vlachos, jonas. (2009). trade finance in a liquidity crisis. the world bank, policy research working paper series. http://www.nordea.nо/ american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 61 www.americanjournal.org topical issues of managing currency risks of commercial banks tugalov bobur applicant of the kimyo international university in tashkent a b s t r a c t k e y w o r d s improving the practice of currency risk management is one of the mandatory conditions for ensuring the effectiveness of foreign exchange transactions of commercial banks. since, in the context of an increase in the number and volume of transactions in foreign currencies, banks need to pay special attention to such transactions, since financial results are increasingly dependent on fluctuations in exchange rates. the article identifies current problems associated with the management of foreign exchange risks of commercial banks and develops scientific proposals aimed at solving these problems. commercial bank, currency risk, currency position, diversification, spot, forward, swap. introduction the decree of the president of the republic of uzbekistan no. 5177 dated september 2, 2017 "on priority measures to liberalize foreign exchange policy" notes that the exclusive use of market mechanisms in establishing the exchange rate of the national currency against foreign currency, increasing the role of market instruments in the use of foreign exchange resources, creating equal competitive conditions in the foreign exchange market for all economic entities, increasing the stimulating role of foreign exchange policy in the development of exports in non-traditional industries, strengthening regional and international economic cooperation and pursuing a tight monetary policy aimed at ensuring the stability of the national currency, providing for the active and flexible use of its instruments, the development of the government securities market are priority areas of liberalization of foreign exchange policy [1] . this, in turn, necessitates improving the practice of managing foreign exchange risks in commercial banks. review of literature on the topic according to h. backlund, the following are financial instruments of the currency risk hedging market: – currency forwards; – currency futures; – currency swaps; – currency options [2] . american journal of business management, economics and banking volume 36 may2025 p a g e | 62 www.americanjournal.org according to j. sinka, if for some reason a bank is unable to carry out hedging within the balance sheet, it can use off-balance sheet methods for hedging purposes, i.e. use currency derivatives – futures, forwards, options or swaps [3] . l. krasavina will conclude that an increase in the volume of conversion operations for the purchase and sale of foreign currencies on the foreign exchange market will lead to an increase in the risk of the foreign exchange position in commercial banks [4] . f. sytin argues that hidden currency risks represent translational, transactional and operational currency risks that are not obvious at first glance. for example, a supplier in the domestic market may consume imported resources, and the company using its services is indirectly exposed to operational risk (an increase in the cost of the supplier's expenses will force the company to raise prices for its products). also, a hidden translation risk arises if a foreign subsidiary is exposed to risk. hidden risks include conversion risks a possible change in the state's currency policy, including the introduction of restrictions on currency exchange transactions [5] . o. pokrovskaya writes: “management of a bank’s currency risk is a system of development, adoption and implementation of decisions on influencing currency risk with the aim of preventing, limiting or minimizing losses associated with it” [6] . t. struchenkova claims that the first stage of risk management is risk analysis, which includes quantitative analysis, which involves determining a quantitative assessment for the existing risk of a commercial bank. based on the fact that risk is defined as the possibility of losses, then risk assessment is the probability of a certain amount of losses. it can be said that quantitative risk assessment consists of two components the probability of occurrence and the amount of possible losses. this assessment is determined for a selected time period (hour, day, week, month, quarter, year, etc.) [7] . m. krichevsky writes that traditional measures of currency risk have serious shortcomings: firstly, they cannot be aggregated (reduced into one indicator) regardless of risk factors; secondly, traditional risk measures do not measure “capital at risk” (capital covering losses caused by risk factors); thirdly, these measures do not allow risk control, since position limits determined by risk factors are often ineffective [8] . a group of economists claim that the stochastic modeling method (monte carlo simulation) is based on modeling random processes with given characteristics. the monte carlo method is similar to the historical modeling method, the difference is that changes in asset prices (exchange rates) are generated pseudo-randomly in accordance with given distribution parameters. the simulated distribution can be any, and the number of scenarios is quite large (up to several tens of thousands). it is worth noting that the use of the monte carlo method does not give unambiguous results, since repeated modeling produces other random values of risk factors [9] . a. demskay writes that the modern financial market offers a number of hedging instruments, such as forwards, futures, options and swaps, but which of them is the most effective as a tool for reducing currency risk remains an open question. developing hedging tactics comes down to answering three main questions: "what?" which hedging instrument to choose; "where?" an exchange or over-thecounter instrument (with which counterparty); "when?" how to choose the moment to conclude a transaction [10] . american journal of business management, economics and banking volume 36 may2025 p a g e | 63 www.americanjournal.org research methodology the aim of the study is to develop scientific proposals aimed at improving the practice of currency risk management. the object of the study is jsc sanoatkurilishbank and jsc asakabank, and the subject of the study is financial relations arising in the process of managing currency risks in commercial banks. the research methodology is based on general scientific methods and comparative analysis. the information base of the research was the official statistical data of the central bank of the republic of uzbekistan and the data of financial reports of commercial banks. analysis and results the level of currency risk in commercial banks is determined by the size of the bank's open currency positions. for a commercial bank, any open position (long, short position) means currency risk. it arises because the exchange rate may change by the time of fulfillment of its obligations and requirements. therefore, banks reduce both the short currency position (prohibition of new currency deposits, discussion of negative rates on legal entities' currency accounts) and the long one (absence of new loans in dollars and euros). table 1 change in open currency positions in uzsanoatkurilishbank1 indicators uzsanoatkurilishbank 2021 2022 2023 amount of open currency positions, billion soums 1045.4 277.9 241.9 level of open currency positions in relation to regulatory capital , % 16.7 3.6 3.2 as can be seen from table 1, the value of open currency positions in uzsanoatqurilishbank in 20212023 tended to decrease. the level of open currency positions in relation to regulatory capital tended to decrease in this period. the results of the analysis showed that the amount of losses from foreign exchange transactions at asakabank in 2021-2023 tended to increase. it is important to note that the low level of diversification of foreign exchange reserves of commercial banks and their clients negatively affects the effectiveness of foreign exchange risk management. table 2 structure of currency conversion operations on the republican currency exchange 2, in percentages indicators 2021 2022 2023 share of us dollar in conversion transactions 89.9 99.9 99.9 share of euro in conversion transactions 10.1 0,1 0,1 share of other currencies in conversion transactions 0,0 0,0 0,0 conversion operations -total 100,0 100,0 100,0 1operation and market risk accounting: www . uzpsb . uz (sanoatqurilishbank). 2 the table was compiled by the author based on data from the republic currency exchange statistician.. http://www.uzpsb.uz/ http://www.uzpsb.uz/ http://www.uzpsb.uz/ http://www.uzpsb.uz/ http://www.uzpsb.uz/ american journal of business management, economics and banking volume 36 may2025 p a g e | 64 www.americanjournal.org as can be seen from table 2, in 2021-2023, the us dollar occupied an absolutely high share in the volume of foreign exchange transactions on the republican currency exchange. table 3 spot transactions and currency swaps on the republican currency exchange3, trillion soums indicators 2021 2022 2023 spot operations 217.7 338.2 458,0 currency swaps 0.2 0.2 0.5 as can be seen from table 3, spot transactions account for an absolutely high share of the volume of currency transactions on the republican currency exchange. this indicates that swap transactions with foreign currencies have not been adequately developed on the domestic currency market. conclusions and suggestions we have formulated the following conclusions regarding the management of foreign exchange risks of commercial banks: *the exclusive use of market mechanisms in establishing the exchange rate of the national currency in relation to foreign currency, increasing the role of market instruments in the use of foreign exchange resources, and creating equal competitive conditions in the foreign exchange market for all economic entities are priority areas for the liberalization of foreign exchange policy, which necessitates the improvement of the practice of managing foreign exchange risks in commercial banks; *the following are financial instruments of the currency risk hedging market: currency forwards, currency futures, currency swaps, currency options; *an increase in the volume of conversion operations for the purchase and sale of foreign currencies on the foreign exchange market will lead to an increase in the risk of the foreign exchange position in commercial banks; *bank currency risk management is a system of development, adoption and implementation of decisions on the impact on currency risk in order to prevent, limit or minimize losses associated with it; *in uzsanoatqurilishbank, the value of open currency positions in 2021-2023 tended to decrease. the level of open currency positions in relation to regulatory capital tended to decrease in this period; *in 2021-2023, the us dollar had an absolutely high share in the volume of foreign exchange transactions on the republican currency exchange; *in the volume of currency transactions on the republican currency exchange, spot transactions have an absolutely high share, which indicates that swap transactions carried out with foreign currencies have not received the proper development on the domestic currency market. in our opinion, in order to improve the practice of foreign exchange risk management in commercial banks, it is necessary to take the following measures: 1. it is necessary to improve the regulation of open foreign exchange positions of commercial banks by introducing “call” and “put” foreign exchange options into the practice of banks; diversifying the foreign exchange reserves of commercial banks and their clients; introducing foreign exchange risk hedging instruments into the practice of managing foreign exchange risks. 3 the table was compiled by the author based on data from the republic currency exchange statistician. american journal of business management, economics and banking volume 36 may2025 p a g e | 65 www.americanjournal.org 2. it is necessary to ensure the development of the forward transactions market by reducing the volatility of the nominal exchange rate of the national currency; narrowing the gap between the market rate of deposits in the national currency and the market rate of loans in foreign currencies, and increasing the liquidity of the spot market. references 1. decree of the president of the republic of uzbekistan no. 5177 dated september 2, 2017. on priority measures to liberalize foreign exchange policy//collection of legislation of the republic of uzbekistan, 2017, no. 36, art. 945; national legislation database, 06.09.2019, no. 06/19/5811/3691; 09.07.2020, no. 06/20/6021/1047, 28.09.2020, no. 06/20/6075/1330; 17.10.2024, no. 06/24/159/0828. 2. backlund n. currency risks and currency risk management. – business economics and tourism, 2011. – p. 17. 3. sinki j. financial management in a commercial bank and in the financial services industry. trans. from english. – m.: alpina publisher, 2017. – p. 807. 4. krasavina l.n. risks in international monetary, credit and financial relations of russia in the context of global challenges//banking. moscow, 2013. no. 10. p. 25. 5. sytin f.m. assessment, forecast and management of currency risks//financial risk management. 02(18). 2009. 132 p. 6. pokrovskaya o.s. use of derivative instruments in managing the currency risk of a commercial bank: author's abstract. dis. candidate of economic sciences. 08.00.10 / o.s. pokrovskaya // vf rus. academy of national economy and public administration under the president of the russian federation. st. petersburg. 2012. 14 p. 7. struchenkova t.v. currency risks: analysis and management. – m.: knorus, 2010. – 10 p. 8. krichevsky m.l. financial risks: a tutorial / m.l. krichevsky. m.: knorus, 2012. 78s. 9. rezaie k. using monte carlo simulation method for the improvement of risk management / k. rezaie, ms amalnik, a. gereie, b. ostadi, m. shakhseniaee // applied mathematics and computation. – 2007. – p. 1495 10. demskaya a.l. one day of a financial risk manager: currency risk (hedging) / a.l. demskaya, a.m. kokosh // financial risk management. 2013. 01(33). 43 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 16 www.americanjournal.org problems and opportunities for the development of islamic banking убайдуллаева мафтунахон акмалхон кизи, ташкентский государственный экономический университет, г.ташкент a b s t r a c t k e y w o r d s in recent years, muslim countries have accumulated a significant amount of finances. in order to attract them to the economy of uzbekistan, it is necessary to make some amendments to the legislation to create conditions for the development of islamic banking. islamic banking, islamic finance, banking sector, instalments, bank. introduction according to article no. 1, in the first section of state sovereignty, uzbekistan is a sovereign, democratic, legal, social and secular state with a republican form of government. this principle of the separation of state power and religion says that no authorities have the right to interfere in the activities of religious organizations if they do not contradict the law. it should be noted that the main part of the population of uzbekistan is muslims. but few people know about the existence of islamic banking and finance. in the muslim religion, there are laws that affect the financial system. in this regard, such a phenomenon as islamic banking has appeared in the world and uzbek economy. islamic banking is banking activities that comply with the principles of sharia and its practical application through the development of the islamic economy. a more correct term for islamic banking is financial activity based on the principles of sharia. the main goal of the creation and development of the islamic banking and financial system is to reach the population and businesses that do not use the services of the traditional banking and financial system due to their religious beliefs. american journal of business management, economics and banking volume 29 october 2024 p a g e | 17 www.americanjournal.org analysis of literature on the topic in the works of the author andrey zhuravlev and alexander bychkov, which analyzes the conceptual foundations of islamic economics and how religious and ethical prescriptions and prohibitions form the features of islamic banking. the paper reveals in detail the forms in which an islamic bank attracts resources and places money in assets. research methodology the main features of the islamic banking system are contained in the following principles: − a ban on loan interest. the receipt of interest is considered as usury and is prohibited by the koran. − prohibition of speculation. it is not allowed to use someone's difficulties to your advantage. unacceptable, among other things, is the type of earnings that became possible due to political problems. − a ban on competitive games, including lottery games. − a ban on the investment of funds in businesses whose activities are contrary to the muslim faith, for example, in companies producing alcohol and tobacco products; witchcraft-related companies; with the processing of meat from animals that have not been slaughtered in the name of allah, and it is not allowed to invest in the development, production and sale of weapons. despite such a number of restrictions, american banks have found a way to make a profit from their activities. bankers issue funds exclusively for the development of business and instead of a loan interest, they take a part of the profit from the borrower. profits for islamic banks also come from the direct sale of various goods in installments at an inflated cost. moreover, according to sharia, it is impossible to make a profit simply from investing funds in the growth. earned income is recognized as legitimate only if the overall well-being has increased as a result of the activity, the added value has increased. thus, the object of islamic banking operations is not money, but a real asset – a good or service. in order to receive a loan from a muslim bank, it is important for the client to have a good public reputation. this is what plays a key role in the issuance of funds, and not the credit history and solvency of the borrower as in uzbek banks. there is also no interest for deposits. the depositor brings money to the muslim bank, the bank uses these funds as a loan it finances the business, and then shares the profit from the investment with the depositor. in addition to all of the above, there is a sharia council in islamic banks – a religious committee, which is an internal monitoring tool that is created to control the bank's actions in accordance with the laws of the koran. the importance of the development of the islamic banking system in uzbekistan is increasing every year. the active development of the muslim banking system is due not only to the growing demand for services that do not contradict the laws of the koran, but also to the accumulation of financial resources by the arab states (according to explicit estimates, in 2020 the volume of finances managed under the rules of the shariyat reached $3 trillion, and by 2024 it may exceed $3.7 trillion). due to the fact that the economic markets of muslim countries are actively developing, there is a competitive struggle among foreign countries to attract these investments. therefore, it can be argued that the growth trend of islamic banks will continue. at the moment, uzbekistan has the opportunity to take advantage of all the advantages of islamic banking due to the fact that there are no competitors in this matter yet. despite the fact that it is believed that islamic finances are not threatened by the crisis due to the structure of the internal system, before american journal of business management, economics and banking volume 29 october 2024 p a g e | 18 www.americanjournal.org and during the implementation of financial operations, there is a double assessment of the severity of risk – first by risk managers, and then by sharia experts. high-risk operations are not carried out. the islamic finance institute is more careful in the selection of investment projects, since it does not have a legitimate opportunity to recover its invested funds, penalties and delays, fully sharing the risks with the recipients of monetary resources. in case of failure of the project, the bank does not have the right to demand back its funds and also does not have the right to impose penalties. however, pledge and surety are widely used in investment protection in islamic banks. thus, the implementation of alternative, including islamic, financial instruments in the economy of uzbekistan necessitates the harmonization of banking legislation and regulations of the bank of uzbekistan for the management of banking risks, effective implementation of banking operations and transactions in the integration processes of forming a single market of banking services. in this regard, public law measures and contractual and legal forms of organizing banking activities will become the most important factor in ensuring the financial stability of credit institutions and banking security. in addition, the problem is the low awareness of the population about the financial products of islamic banking, which mistakenly assumes the possibility of their application according to the religion of customers and even a radial orientation, although the client of an islamic bank can be any capable person who is ready to cooperate on the principles and values that are the basis of this system. the model of islamic banking for uzbekistan is a promising direction for the development of the bank sphere. it opens up opportunities for cooperation with the countries of central asia and the arab countries, and also makes it possible to put into circulation the funds of millions of muslims whose religious beliefs do not allow them to use the services of ordinary banks. deputy chairman of the central bank of uzbekistan behzod khamraev at a meeting of the senate of the oliy majlis on may 18answeredon the question of the introduction of islamic financing in the banking sector of the country. the “uzbekistan-2030" strategy sets the task of introducing the criteria and procedures of islamic financing in at least three commercial banks and the formation of a legislative framework for islamic finance. "there is a procedure there, but the adoption of a provision on islamic financial services was expected. this provision has been developed by the central bank, now it must undergo state registration. after its adoption, work will begin in this area," said the deputy head of the central bank. behzod khamraev reported that 12 banks in uzbekistan, including agrobank, uzpromstroybank, microcreditbank, ipak yuli bank and others, provide murabahah services at the expense of the credit lines of the islamic corporation for the development of the private sector. trustbank's subsidiary trast muamalat provides islamic leasing services. murabah, as mentioned above, is a buy-and-sell financing transaction in which a bank purchases a commodity from a broker and sells it to the client under the agreement of murabahah at a pre-agreed markup, which is calculated as a lump sum or as a percentage of the value of the trade. after signing the murabahah contract, the client sells the trade to a broker of a third party, with the bank acting as an intermediary. the draft resolution of the president, submitted for discussion in may 2018, planned to create an infrastructure of islamic banking and finance in uzbekistan. the document outlined the introduction of a ban on remuneration in the form of interest (ribo), the sharing of profits and losses with the entrepreneur according to the shares of participation in the project, the development of regulatory legal https://www.youtube.com/watch?v=ypop8slwine https://lex.uz/ru/docs/6600404 https://www.gazeta.uz/ru/2018/05/16/islamic-banking/ american journal of business management, economics and banking volume 29 october 2024 p a g e | 19 www.americanjournal.org acts on the implementation of insurance activities (takaful), leasing activities (ijarah), activities of on transactions with valuable securities (sukuk) and other operations based on the principles of islamic finance. however, there are certain problems of implementing this system. difficulties and contradictions arise with the legislation and the tax base of banks. also, the lack of awareness of the population about the possibilities of islamic banking creates a false impression of the system itself among potential consumers. there are also certain risks of the system itself, in case of failure of the project, the bank does not have the right to demand the return of its funds and also does not have the right to impose penalties. nevertheless, many experts consider islamic banking to be a more stable and fairer financial model that stimulates the construction of long-term partnerships between investors and recipients of funds. references 1. "problems of islamic banking development" // cyberleninka // https://cyberleninka.ru/article/n/problemy-razvitiya-islamskogobankinga2. 2. "islamic banking: history of emergence and specifics" // cyberleninka // https://cyberleninka.ru/article/n/islamskiy-banking-istoriyapoyavleniya-i-spetsifika 3. "will islamic banking work?" // electronic periodical "mk.ru" // https://www.mk.ru/economics/2022/07/30/myne-khalyalshhiki-my-partnery-zarabotaet-liislamskiy-banking-v-rossii.html 4. "islamic banking was adopted in the first reading" // kommersant online publication // https://www.kommersant.ru/doc/5771638 5. "why islamic banking is hardly part of the financial system of russia" // internet portal "rossiyskaya gazeta" // https://rg.ru/2022/05/12/regskfo/pochemu-islamskij-banking-s-trudomvhodit-v-finansovuiu-sistemu-rossii.html 5. "islamic economic model and modernity" is a book on islamic economics and finance in russian 6. news of the right to zakon.kz 7. official website of the center for the development of islamic economics and finance (a large number of analytical articles, answers to questions on fiqh of property relations, thematic videos and webinars) 8. islamic business and finance – information and analytical publication (glossary, articles, news) 9. finance according to sharia law. what is islamic banking and what is its essence // rg, 20.07.2023 10. "islamic finance" — research section-study on pr activities of islamic financial institutions and islamic banking /webarchive/ 11. abu hamid al-ghazali. scales of deeds and other works. m. ansar. 2004. 12. muhammad taqi usmani. introduction to islamic finance. moscow, islamic book. 2013. 13. nurullina g. islamic business ethics. m. ummah. 2004. 14. sudin charon, van nursophiza van azmi. islamic finance and banking system: philosophy, principles and practice. kazan. linova-media. 2012. 15. value orientations in the economic environment of the islamic world. festschrift. mirbis. moscow: max-press. 2009. 16. pavlov v.v. islamic banks in financial law. m. ankil. 2003. 17. khasbulatov r.i. world economy. moscow: economics. 2001. 18. khasbulatov r.i. international finance. m. yurayt. 2014. https://cyberleninka.ru/article/n/problemy-razvitiya-islamskogobankinga2 https://cyberleninka.ru/article/n/islamskiy-banking-istoriyapoyavleniya-i-spetsifika https://www.mk.ru/economics/2022/07/30/myne-khalyalshhiki-my-partnery-zarabotaet-li-islamskiy-banking-v-rossii.html https://www.mk.ru/economics/2022/07/30/myne-khalyalshhiki-my-partnery-zarabotaet-li-islamskiy-banking-v-rossii.html https://www.kommersant.ru/doc/5771638 https://rg.ru/2022/05/12/regskfo/pochemu-islamskij-banking-s-trudom-vhodit-v-finansovuiu-sistemu-rossii.html https://rg.ru/2022/05/12/regskfo/pochemu-islamskij-banking-s-trudom-vhodit-v-finansovuiu-sistemu-rossii.html https://web.archive.org/web/20120309004118/http:/www.mardjani.com/shop/islamovedenie/islamskaya_ekonomika/item_167/ https://www.zakon.kz/4983342-globalnyy-rynok-islamskih-finansov-v.html http://islameconomy.ru/ http://islamic-finance.ru/load/1-1-0-1 https://rg.ru/2023/07/20/v-chem-sekret-uspeha-islamskogo-bankinga.html https://web.archive.org/web/20150723223618/http:/nmingisheva.ru/islamskii-financy.html american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 22 www.americanjournal.org the need to attract direct investments in the development of the country's economy saidov rasulbek boltaboyevich associate professor of “evaluation work and investments” department of tsue tulaganova rukhshona farrukh qizi student of tashkent state university of economics, tashkent, uzbekistan email: rukhshonatulyaganova@gmail.com a b s t r a c t k e y w o r d s this article examines direct investments, their role in the development of the country's economy, and their contribution to the development of the recipient country. also, the opinions and researches of foreign and local scientists on direct investments and their importance in the development of the country's economy were studied, real statistical data on the investment environment of the republic were analyzed and a number of recommendations have been developed. investment, direct investment, investment environment, recipient, investment attractiveness. introduction in the process of today's economic globalization, the countries of the world make gaining their place in the world economy and achieving more progressive economic results from year to year an integral part of their strategic plan. positive economic indicators are due to a number of factors, including an increase in the value of the annual gross domestic product produced in the country, an increase in the share of exports in the country's foreign trade turnover, the creation of new job vacancies, and the improvement of the infrastructure. direct investment to the country is the most convenient and effective way to achieve the above-mentioned economic results. if we look at the experience of developed countries, we can see that their socio-economic development and current position in the world economy are directly related to the weight of investments attracted to the country and the investment environment created in them. as our country's president shavkat mirziyoyev said: "world experience shows that any country that has pursued an active investment policy has achieved stable growth of its economy. that's why investment is the driver of the economy, it is no exaggeration to say that it is the heart of the economy in uzbek terms. along with investment, new technologies, advanced experiences, and highly qualified specialists will enter various industries and sectors, regions, and entrepreneurship will develop rapidly [1]". therefore, direct investments not only attract capital from foreign investors to the country's economy, but also modernize the economy american journal of business management, economics and banking volume 25 june 2024 p a g e | 23 www.americanjournal.org by promoting techniques and technologies that meet world standards, bring in qualified specialists, and new innovative ideas. to increase the effectiveness of the activities of the president of the republic of uzbekistan to attract foreign direct investments to the economy of our country, to inform foreign investors about the opportunities and potential of our country, to attract and utilize foreign investments, and pd-4300 of april 29, 2019 "on further improvement of the mechanisms of attracting foreign direct investments to the economy of the republic [2] " adopted in order to improve the coordination of the activities of local executive bodies and local executive authorities shows how important the role of direct investment in the policy implemented in uzbekistan is. analysis of literature on the topic investment and direct investment is a comprehensive concept, which has been approached differently by local and global economists and experts in their scientific works. foreign direct investment is defined as follows in the law of the republic of uzbekistan "on investments and investment activities" no. 598: "direct foreign investments are investments of a foreign investor without government guarantees, at the expense of own funds or debt funds in risky conditions [3]". economist edward m. graham in his manuscripts examines foreign direct investment from the perspective of finance, macroeconomics and microeconomics, accounting, and gives his conclusions. according to him, it is the capital invested by the investors (transnational corporations) of one country to another country in order to gain income by influencing the management of the enterprise [4]. according to g.m. galeeva, the main factors of attracting foreign direct investment are access to markets and resources. the concentration of foreign capital only in certain regions and certain sectors limits the development of the economy of other regions, primarily affects the economy of undeveloped regions [5]. russian scientist, professor a.s. neshitoy describes the content of investments as follows: "it is the long-term placement of funds (capital) directed to the implementation of entrepreneurial projects, socio-economic programs and innovation projects in various sectors of one's own or another country in order to obtain profit or achieve other results. [6]". professor d. gozibekov stated that investment consists of obtaining funds from specific and reliable sources, mobilizing them in a reasonable manner, maintaining capital value, taking into account the level of risks, and obtaining the intended effect [7]. economists of our republic b.s. mamatov, d. yu. khujamkulov, o.sh. the nurbekovs define foreign direct investment as follows: "foreign direct investment is the capital of investments by the investing state or its economic entities. indicates the investor's direct right to securities or property, meaning that it will be placed in the economy of the host country [8]". in our opinion, direct investment is a long-term form of capital placement that allows the investor to gain partial or complete control over the enterprise in the recipient country. research methodology in this article, direct investments, their role in the development of the country's economy were studied theoretically and practically in the case of our country, as well as graphical grouping, economicstatistical analysis and comparative analysis as a research method. methods were used. american journal of business management, economics and banking volume 25 june 2024 p a g e | 24 www.americanjournal.org analysis and results at present, the development of the country's economy, the attraction of direct investments and their effective use are of great importance in achieving economic stability. after all, properly directed investments serve to develop entrepreneurship in the country and create a favorable business environment, increase the country's export potential, modernize the production and service process as a result of foreign experience, and increase the reputation of the republic at the world level. at the same time, the inflow of foreign direct investments causes the emergence of new forms of ownership in the recipient country, and the improvement of existing forms. for example, the flow of foreign direct investments laid the foundation for the establishment of joint ventures in uzbekistan and created the ground for the formation of foreign enterprises. we can divide the factors affecting the ability of developing countries to attract foreign direct investments into five major groups: — market factors (domestic market and export opportunities); — availability and level of supply of natural resources; —factors of production costs; —current investment environment; — the country's economic development strategy [8]. therefore, if the amount of foreign direct investment attracted to the country is high and it is effectively used, it will make an incomparable contribution to the development and sustainable growth of the country's economy. the country's ability to attract direct investments directly depends on the investment environment and investment attractiveness created in it. the economic, social, financial, political, legal, environmental and other conditions and opportunities of the recipient country determine the healthy and comfortable investment environment. realizing that direct investments will have a progressive effect on the country's economy, our country should create the necessary favorable conditions for investors in the republic of uzbekistan, increase the weight of foreign investments, increase the capital of foreign investors in the economy. measures are being taken to attract development of various fields. as a result of the efforts made and effectively implemented measures, the volume of capital investments is increasing year by year (table 1). the table shows the regional value of investments in fixed capital in our country in 2017-2022 in billion soums. as a result of the stable increase in the volume of investments attracted to our country during the last 6 years, in 2022, compared to 2017, our country had 194,084.8 billion soums or 3.6 times more investment was absorbed. table 1. investments in fixed capital by regions [9] in billion soums areas 2017 2018 2019 2020 2021 2022 republic of uzbekistan 72155.2 124231 195927 210195 239553 266240 republic of karakalpakstan 2822 6757.8 8750.6 7089.8 8110.7 10254 andijan 2986 4711.9 7452.1 9622.6 11176.6 14339.8 bukhara 11613.4 9610.9 10366.6 12183.9 20528.3 21638.3 jizzakh 1788.2 3606.3 7900.9 12545.4 9233.6 10373.9 kashkadarya 11175.3 16518.5 24462.5 20557.6 17359.1 16012.8 navoi 3977.9 10579.5 17646.3 15688.4 15020.1 17958.1 american journal of business management, economics and banking volume 25 june 2024 p a g e | 25 www.americanjournal.org namangan 3586.7 8158.1 12084.9 12007.2 12982 14775.1 samarkand 4384.2 7061.4 10266.7 14656.4 15641.6 18917.1 surkhandarya 3551 7240.6 11835.1 10068.2 12037.8 11569.4 syr darya 1628 2699.3 5869.1 7191.9 8051.8 12354.6 tashkent region 5938.4 11226.9 20353.9 21148.6 28113.6 35767.7 ferghana 2954.5 5539.1 8685.4 11040 12625.2 15419.3 khorezm 2175.9 3013.8 5032 5391.8 8292 8769.7 tashkent city 13573.7 26435.7 42458.1 50371.3 58172.7 56847.9 as a result of the state investment program, measures aimed at increasing the investment attractiveness of our republic, the growth rate of attracted investments in 2017-2019 reached 138.1%, and as a result of the pandemic that had a negative impact on the entire world economy these results were below 100% in 2020 for the first time since 2000 (figure 1). it is clear from this that many more reforms should be continued in order to make our country one of the more attractive countries for investment. figure 1. growth rate of fixed capital investments in 2017-2023 (in %) [9] as a result of the investment environment created in our country and benefits from taxes, duties and other state payments provided to attract foreign investors, most of the capital investments in our country are accounted for by foreign investments (figure 2). in 2017, almost a quarter of the total investments were foreign investments, and by 2022, this figure will be 42.8%. 97.0 trillion in 2022 from direct foreign investments and loans to the economy of our country. soums of investments in fixed capital were absorbed, their share in the total investments in the republic was 36.0%, and compared to 2021, it was 104.3% [9]. 119.4 129.9 138.1 95.6 102.9 100.2 0 20 40 60 80 100 120 140 160 2017 2018 2019 2020 2021 2022 in p er ce n ta ge s, % american journal of business management, economics and banking volume 25 june 2024 p a g e | 26 www.americanjournal.org figure 2. the share of foreign investments and loans in fixed capital investments in 2017-2022 (in %) [9] conclusions and suggestions as a result of our research and studies, we can say that our country, the republic of uzbekistan, is among the countries whose investment potential is increasing year by year, the investment environment is improving year by year, and the opportunities, facilities, and tax and duty benefits offered to investors attract them to make active investments. nevertheless, increasing the investment attractiveness of our country, taking into account the incomparable benefit and progressive impact of foreign direct investment on the country's economy, and its significant contribution to the wider promotion of modernization and innovation, it is desirable to develop new effective, innovative ways of attracting foreign direct investments in a larger volume. summing up from the above analysis, we can say that direct investments not only contribute to the development of the country's economy, but also lead to the emergence of new forms of ownership, the creation of new vacancies, the unemployment of the population. as a result of providing employment, unemployment will decrease, the life of the population will improve, and the scale and reputation of the recipient country will increase in the world. it is interesting to note that as a result of the flow of direct investments, new technologies are introduced, old devices and machines are replaced with modern ones that meet world standards, and more effective management methods are introduced. in order to increase the volume of foreign investments entering our republic, a number of recommendations and suggestions have been developed: 1. to reform the currency and monetary policy of our country, to further develop the stock market and to develop more effective methods of familiarizing foreign investors with the benefits offered to them; 2. to increase the volume, quality, and accuracy of open information on the republic's economy and the activities of its industries, and to ensure its transparency; 3. to improve the investment environment in our country, apply the experience of foreign countries that are considered attractive for investment, adapted to the conditions of our country. we believe that the implementation of a number of promising proposals and recommendations given above will make our republic appear as a more attractive country for investment in the world in the coming years and reform many sectors of our economy through attracted direct investments. and contributes to improvement. 23.8 24.3 43.6 42.7 42.3 42.8 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 in % 2017 2018 2019 2020 2021 2022 american journal of business management, economics and banking volume 25 june 2024 p a g e | 27 www.americanjournal.org references 1. from the address of the president of the republic of uzbekistan sh. mirziyoyev to the parliament on december 28, 2018 "on the most important priorities for the development of our country in 2019". 2. decree of the president of the republic of uzbekistan no. pd-4300 of april 29, 2019. 3. law of the republic of uzbekistan dated december 25, 2019 "on investments and investment activities" № 598. 4. edward m. graham. foreign direct investment in the world economy. // imf working paper no. 1995/059. p. 36. 5. g.m. galeeva and e.n. kadeeva. problems of attracting foreign direct investment into the regional economy. // journal of physics: conference series, 1730(2021) 012118, 2020. – p. 8; 6. neshitoy a.s. investment. textbook. 4-oe izd. m.: dashkov, 2006. s. 13. 7. g'ozibekov d. g', investment financing issues. t.: "finance", 2003. p. 26. 8. b.s. mamatov, d. yu. khujamkulov, o.sh. nurbekov. organization and financing of investments. textbook. t.: economy-finance, 2014. p. 607. 9. prepared by the author based on information from the official website of the statistical agency under the president of the republic of uzbekistan www.stat.uz. http://www.stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 110 www.americanjournal.org theoretical, economic and methodological basis of property insurance tuxtarova maftuna yo‘ldoshboy kizi “university of economics and pedagogy” notm, phd. e-mail: tuxtarova_m@mail.ru a b s t r a c t k e y w o r d s in this article, the theoretical, economic, and methodological foundations of property insurance, as well as suggestions and practical recommendations for the implementation of property insurance relations and further improvement of insurance relations have been developed. commercial banks, insurance organizations, insurance market, bank insurance, insurance premium, insurance money, insurance liability. introduction in today's society, the development of insurance activities in sync with the development of the digital economy is the demand of the times. insurance relations are based on risk prevention and gdp redistribution processes. in the event of an insurance event, there is a need to protect the property interests of business entities and residents, which in turn creates a need for insurance, and the increase in the number of subjects who express a desire to use insurance protection leads to an increase in demand in the insurance market. the increase in demand in the insurance market is determined by the increase in the number of insurance organizations and the increase in the level of capitalization of insurance organizations. in the previous paragraph of our research, we analyzed insurance as an economic category and considered the functions of insurance relations as a source of investment, ensuring the continuity of the economy. . we have acknowledged that insurance plays an important role in the socio-economic development of the country.in developed countries, insurance organizations offer both insurance services and consulting services, and insurance organizations have become multinational corporations, global financial institutions with various assets in many countries.. such insurance organizations are operating in the international market in order to attract new customers beyond the borders of the national market. literature review the existence of insurance relations is not only of interest to subacres with a high level of risk, but is considered important for the whole society. u.t.akhvlediani is considered one of the scientists who analytically, critically and systematically studied the practice of property insurance. he focused on a certain situation in his research. these are: mailto:tuxtarova_m@mail.ru american journal of business management, economics and banking volume 31 december 2024 p a g e | 111 www.americanjournal.org it is represented by the formation of a damage prevention fund in insurance organizations, the possibility of reducing the level of risk by the insurance organization, for example, by placing firefighting equipment. we can call this function preventive function. preventive measures carried out by insurance companies lead to a reduction of insurance losses in the future and ensure the safety of operations; the innovative function of property insurance provides financial support for socio-economic development of society, man-made growth and risky situations, and the introduction of innovative technologies by insurance organizations; the investment function of property insurance is the important investment source of funds accumulated by insurance organizations. economist yu.b. fogelson defines in his research that financial flows are involved in the process of redistribution, he says that the basis of financial relations is represented by the existence of insurance. n.s. kovalevskaya's studies gave great importance to the place of insurance in society, for example, insurance gave great importance to increasing knowledge, raising its literacy, popularizing the type of property insurance, expressed the concepts; availability of funds in the insurance organization to pay insurance coverage; o reduce the number of organizations that cannot participate in the production process due to losses in the country's economy; the insurance organization analyzed funds from the point of view of using them in investment activities. m.a. kovalevsky analyzed the negative consequences of risk in his research and emphasized the role of the insurance organization in this relationship. the economist proposed a mechanism for legal regulation of property insurance relations. it should be noted that property insurance allows not to lose economic activity. m.a. kovalevsky said: issues of economic security ensure stable growth of the economy and reduce damage caused by internal and external factors. research methodology research methods such as analysis, synthesis, selective observation, comparison, statistical analysis, induction, deduction of property insurance relations was used. analysis and results as a result of the protection of the property interests of natural and legal entities according to the classification of property insurance, insurance relations are reflected. this classification is presented in figure 1. figure 1. types of property insurance american journal of business management, economics and banking volume 31 december 2024 p a g e | 112 www.americanjournal.org property insurance with the nature of compensation compensates for property losses after the insurance contract is concluded and at the same time reduces the level of insurance risk. property interest in property insurance business processes is the existence of interest and risk that has value expression. therefore, property insurance is different for legal entities and individuals. for example, individuals can insure their property, housing, and vehicle. in foreign literature, liability insurance is also part of the property insurance network, because liability insurance provides for coverage of material damage. legal entities can insure their buildings and structures, production activities, credit risk, i.e. financial risks. the insurance risk is the basis of the insurance contract. insurance risks are assessed according to their level of riskiness and ensure the regularity of business processes. losses caused by insurance risks are guaranteed by insurance coverage after the occurrence of an insured event. in the following scheme, property insurance risks are classified, their insurance contracts also vary according to the probability of occurrence of risks. figure 2. property risk classification figure 2 shows different types of property risks by type of property insurance, risk level, cost and coverage amount. taking into account the above points, it was justified that the concepts of insurance benefit and property interest may intersect in some cases, and sometimes they may be separated from each other. however, not every risk can be considered an insurance risk, for example, a loss caused by an intentional act is not considered an insurance event, we can mention similar miles, for example, damage caused by gambling and various entertainment games, damage caused to the health of a child through the use of gadgets is not considered an insurance event. conclusion income from insurance activities, authorized capital and other funds of the insurance organization will be considered as temporary free funds in the economy and will be included as a source of investment, insurance organizations will be able to place their funds in areas with high profitability, bank deposits in the event of unforeseen damage, compensation of financial losses is provided through the fund formed in the insurance organization. in the case of property insurance, the insured may not always be property risk by types of risk by level of risk according to the amount covered according to the form according to the amount spent voluntary, mandatory for full cost or share on certain risks moderately dangerous, dangerous natural, manmade, random american journal of business management, economics and banking volume 31 december 2024 p a g e | 113 www.americanjournal.org the owner of the property, there is a possibility that the beneficiary or beneficiary of the insurance contract will definitely be there. the main essence of the property insurance network is to protect the property interests of the insured or the beneficiary, to identify risk situations, to eliminate them, to prevent situations of helplessness in the life of the population and risks that lead to need. taking this into account, property insurance relations are aimed at protecting the property interests of legal entities, that is, they are understood as one of the methods of compensation for damage caused by natural disasters, fire and other losses and unexpected events, and protection of the property interests of individuals. by concluding an insurance contract, the property interests of legal entities and individuals are protected. research shows that protecting your property with insurance is the most effective way to ensure financial stability. because insurance not only covers the damage, but also guarantees future risks protection of property interests, in most cases, protects the life and activity of individuals and legal entities. analysis of property insurance relations from the point of view of protection of people's property interests is represented by the following classifications: the presence of risk can be in any situation, even if this risk is insured or the object is created out of necessity, but it is possible to prevent risks and reduce their consequences through insurance organizations. after the conclusion of the insurance contract, the guarantee is provided for the policyholder, and for the insurance organization, it becomes clear that there may be losses due to possible damage. for interested parties, this situation allows to know the outcome through forecasting. for example, how the terrorist situation in the usa affected the insurance organizations of england. it is not difficult to determine this, because in the conditions of globalization, such a situation is not an exception. the presence of risk motivates interested parties to enter into insurance contracts for their own benefit; we can consider the situations that occur in life, the driver caused damage to a third party due to a traffic accident, the amount of damage can be a large amount for the driver during this period, the driver may run away from the place of the traffic accident, so we can cite many such situations . the essence of third-party liability insurance is that in such a case, the victim becomes the beneficiary, because the type of insurance is guaranteed by the state due to the fact that it is mandatory, even if the identity of the driver is uncertain, the existence of an insurance policy ensures the driver's responsibility to the victim and satisfies his needs. . not being able to afford the victim's insurance coverage for the driver means that the victim is not covered. such situations are eliminated through the insurance policy. thus, after the conclusion of the insurance contract, the insurance organization undertakes the risks of the insured and guarantees the property interests of the beneficiary. it should be noted that the amount of insurance premiums of insurance contracts in property insurance will not be large. in the event of an insurance event, the insurance amount is several or even more than the insurance premium. the existence of insurance relations is not only of interest to subacres with a high level of risk, but is considered important for the whole society. american journal of business management, economics and banking volume 31 december 2024 p a g e | 114 www.americanjournal.org references 1. и.ғ.кeнжaeв, «суғуртa тaшкилoтлaрининг мoлиявий рeсурслaрини жoйлaштириш сaмaрaдoрлигини oшириш йўллaри.» иқтисoдиёт фaнлaри бўйичa phd илмий дaрaжaсини oлиш учун ёзилгaн диссeртaция aвтoрeфeрaти. т.: тми, 2019. 26 б. 2. х.м.шeннaeв, «прoблeмы стaнoвлeния стрaхoвoгo рынкa в узбeкистaнe» aвтoрeфeрaт диссeртaции нa сoискaниe учeнoй стeпeни к.э.н. м.: 1996. 3. шaхoв в.в.стрaхoвaниe:учeбник для вузoв.–м. юнити,2001.–311 б. 4. шихoв a.к. стрaхoвaниe: учeб. пoсoбиe для студeнтoв вузoв. м.: юнити, 2000. 431 с. 5. юлдaшeв р.т. oчeрки тeoрии стрaхoвaния. рeтрoспeктивный aнaлиз рaзвития./р.т.юлдaшeв.– м.: aнкил, 2009.– 248 с. 6. астанакулов о.т. ислом молияси асослари: тараққиёт босқичлари, истиқболлари “iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. № 5, sentyabr-oktyabr, 2021 yil. 7. thoyts r. insurance theory and practice / r. thoyts. 2010. 340 p.; cecchini p. the incomplete european market for financial services (zew economiics studies 19.) / p. cecchini, jopp f. heinemann. 2003. – 187 p. 8. бизнес: оксфордский толковый словарь : oxford university press. прогресс-академия, 1995. университет штата индиана, 2010 9. зубец а. “маркетинговые исследования страхового рынка”. м.: центр экономики и маркетинга, 2002.224 с. 10. смит а. исследование о природе и причинах богатства народов. м.: эксм0.2007. 960 с. 11. хилл томас инглиш, современные теории познания, перевод с английского; общая редакция и предисловие проф. б.э.быховского, м.: прогресс, 1965.533 с. 12. ққўлдошев. ўзбекистон миллий суғурта бозорида ўзаро суғурта хизматларини ривожлантириш масалалари. “иқтисодиёт ва инновatsiон технологиялар” илмий электрон журнали. № 2, март-апрель, 2019 йил. 13. абдуллаев некруз абдуллаевич. кредит скоринги: моҳият, қўллаш механизмлари, муаммолар. https://cyberleninka.ru/article/n/kredit-skoringi-moliyalashtirish mehanizmlari muammolar. https://cyberleninka.ru/article/n/kredit-skoringi-moliyalashtirish american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 35 www.americanjournal.org implementation and evaluation of heuristic algorithms for real-time tourist route planning go‘zal absalamova 1,2, shuxrat kamalov 1, diyora absalamova 1, tashkent state university of economics, tashkent, uzbekistan 2 jizzakh branch of the national university of uzbekistan named after mirzo ulugbek, jizzakh, uzbekiston corresponding author: gozalabdusalomova1996@gmail.com a b s t r a c t k e y w o r d s real-time tourist route planning is increasingly vital in modern tourism, necessitating algorithms that adapt to dynamic conditions like traffic and user preferences. this study implements and evaluates two heuristic algorithms—genetic algorithms (ga) and simulated annealing (sa)—for real-time route optimization, using samarkand, uzbekistan, as a case study, benchmarked against dijkstra’s algorithm. experiments across short (5 nodes), medium (7 nodes), and full (10 nodes) tours assessed computation time, fitness score (balancing time, distance, and preference), adaptability, and route quality. results show dijkstra excels in speed (0.12-0.25s) and adaptability (93.9-95.3%) but yields lower quality (12.4-23.5). sa offers a balance, with times of 0.87-1.89s, adaptability of 89.2-92.1%, and quality of 14.9-27.8, suitable for mobile applications. ga achieves optimal fitness (42.6-81.5) and quality (15.8-30.2) but lags in speed (2.85-6.74s) and adaptability (82.3-88.7%), favoring pre-planned itineraries. visualizations, including a samarkand route map, highlight ga’s preference-rich detours (e.g., shah-i-zinda), sa’s balanced paths (e.g., registan), and dijkstra’s time focus. the findings suggest sa for real-time use and ga for qualityfocused planning, with recommendations for hybrid approaches and realworld validation in heritage tourism contexts. real-time route planning, heuristic algorithms, genetic algorithms, simulated annealing, samarkand, tourism optimization introduction in the contemporary tourism industry, the issue of tourist route planning has become increasingly complex. rapidly advancing technologies, particularly mobile devices and global positioning systems (gps), demand flexible solutions that cater to travelers’ real-time needs. traditional route planning methods, such as shortest-path algorithms [1] or static planning tools like google maps and tripadvisor, often fail to fully account for dynamic factors such as individual preferences, time american journal of business management, economics and banking volume 34 march 2025 p a g e | 36 www.americanjournal.org constraints, or external conditions (e.g., traffic or weather changes). as a result, the challenge of efficiently calculating and adapting optimal routes in real time has emerged as a pressing concern. various approaches have been proposed to optimize tourist route planning. for instance, graph theorybased methods [2] and dynamic programming have been conventionally applied, while machine learning algorithms have gained significant attention in recent years [3]. however, machine learning techniques require large datasets and substantial computational resources, limiting their applicability in real-time scenarios. in this context, heuristic algorithms—such as genetic algorithms [4] and simulated annealing [5] offer notable advantages in terms of speed and adaptability, positioning them as effective solutions for complex optimization problems. this study explores the implementation and evaluation of heuristic algorithms to address the challenge of real-time tourist route planning. the primary objective is to develop and assess the performance of genetic algorithms and simulated annealing in this domain, focusing on their efficiency and practical utility. the route planning process is formulated as a mathematical model, and the algorithms are tested in realistic scenarios. the findings are expected to contribute to the development of fast, personalized route planning services in the tourism sector. i. literature review the field of tourist route planning has a rich history rooted in operations research and computational optimization, with approaches evolving to meet the demands of modern tourism. early efforts relied heavily on classical algorithms designed for static environments. dijkstra’s shortest-path algorithm[6] remains a cornerstone for finding optimal routes in fixed graphs, widely implemented in navigation systems like google maps. similarly, the a* algorithm [7] enhances efficiency by incorporating heuristics to guide search processes. however, these methods assume unchanging conditions, a limitation highlighted by smith and johnson[8], who noted their inability to adapt to real-time variables such as traffic congestion or sudden weather changes. to address this, dynamic programming techniques[9] were introduced, enabling route recalculations based on updated inputs. applied dynamic programming to urban tourist routes, achieving a 20% reduction in travel time under variable traffic scenarios, but their approach scaled poorly with larger datasets due to exponential computational complexity[10]. in response to these shortcomings, recent research has explored data-driven paradigms, particularly machine learning. reinforcement learning models, such as those proposed by li and zhang[11], leverage historical travel data to predict optimal paths, reporting a 15% improvement in route efficiency over traditional methods[12]. similarly, kumar et al developed a deep neural network for personalized itinerary planning, integrating user preferences like cultural interests and time constraints, with a reported 92% user satisfaction rate in offline tests[13]. despite these advances, machine learning’s reliance on extensive training datasets and high computational power poses significant barriers to realtime deployment. as garcia and patel (2022) observed, such models often require cloud-based processing, introducing latency unacceptable for on-the-go tourist applications[14]. heuristic algorithms have emerged as a practical alternative, offering a balance between computational efficiency and solution quality suited to real-time needs. genetic algorithms, pioneered by holland (1992), excel in multi-objective optimization by mimicking natural selection processes[15]. mitchell and baker (2019) applied genetic algorithms to vehicle routing, optimizing for distance and delivery time with a 25% improvement over greedy methods [16]. in tourism, lee and kim (2019) adapted this american journal of business management, economics and banking volume 34 march 2025 p a g e | 37 www.americanjournal.org approach to design multi-destination itineraries, reducing planning time by 30% while accommodating scenic priorities, though their framework was limited to offline use [17]. simulated annealing (kirkpatrick, gelatt, & vecchi, 1983), inspired by metallurgical cooling, provides another heuristic avenue, efficiently exploring large solution spaces[5] wang et al. (2021) utilized simulated annealing for logistics route optimization, achieving a 15% reduction in delivery times under dynamic constraints, yet their study did not extend to user-centric applications like tourism [18]. more recently, riff, s and castro, (2024) combined heuristics with real-time traffic data for urban navigation, but their focus on vehicular efficiency overlooked tourist-specific factors such as attraction preferences or flexible schedules[19]. while these studies demonstrate the versatility of heuristic methods, their application to real-time tourist route planning remains underdeveloped. most existing work prioritizes either offline optimization or non-tourism contexts neglecting the unique demands of dynamic, user-driven tourism scenarios[20]. classical methods lack adaptability, and machine learning, though powerful, is impractical for immediate route adjustments on resource-limited devices[21]. this study fills this gap by implementing and evaluating genetic algorithms and simulated annealing specifically for real-time tourist route planning, emphasizing rapid adaptation to user preferences and external conditions in a practical, tourism-focused framework[22]. ii. methodology this section outlines the approach to implementing and evaluating heuristic algorithms for real-time tourist route planning. it encompasses problem formulation, detailed descriptions of the selected algorithms, data collection, experimental setup, and evaluation metrics, ensuring reproducibility and scientific rigor. 3.1. problem formulation the real-time tourist route planning problem is conceptualized as a multi-objective optimization challenge within a directed graph g = (v, e), where v is a set of nodes representing tourist attractions and e is a set of edges representing paths between them. each edge eij connecting nodes vi and vj is characterized by a dynamic weight vector tij, dij, pij, where: tij is the travel time (in minutes), subject to real-time updates (e.g., traffic conditions), dij is the physical distance (in kilometers), assumed static unless road closures occur, pij is a preference score (range: 1-5), reflecting user-specific interests such as cultural significance, scenic beauty, or accessibility, assigned based on user input. the goal is to determine an optimal route r = {v1, v2,…,vn} starting at a designated origin v1 and ending at vn (optional return to v1 for circular tours), that balances three objectives: minimizing total travel time (1), minimizing total distance (2) and maximizing total preference satisfaction (3). t = ∑ ti,i+1 n−1 i=1 (1) d = ∑ di,i+1 n−1 i=1 (2) p = ∑ pi,i+1 n−1 i=1 (3) american journal of business management, economics and banking volume 34 march 2025 p a g e | 38 www.americanjournal.org additionally, the route must respect a user-defined time budget tmax (e.g., 180 minutes), ensuring feasibility for real-world scenarios like day trips. the multi-objective nature is unified into a single fitness function using a weighted sum approach: fitness(r) = w1 ∙ t + w2 ∙ d − w3 ∙ p, subject to t ≤ tmax (4) here, w1, w2, w3 are weighting coefficients set to 0.4, 0.4, and 0.2, respectively, determined through preliminary sensitivity analysis to prioritize efficiency (time and distance) while still valuing user preferences. the negative sign for p reflects its maximization goal within the minimization framework. real-time adaptability is modeled by updating tij dynamically based on external inputs, such as traffic data or weather alerts, necessitating algorithms capable of rapid re-optimization. 3.2. heuristic algorithms two heuristic algorithms—genetic algorithms (ga) and simulated annealing (sa)—are selected for their proven efficacy in combinatorial optimization and adaptability to dynamic conditions, as highlighted in the literature review [5] 3.2.1. genetic algorithm ga mimics natural evolution to evolve a population of candidate solutions toward optimality. each solution, or route r, is encoded as a chromosome—a permutation of nodes ( v1, v2, … vn) — where the sequence dictates the travel order. the algorithm operates as follows (fig. 1): figure 1. flawchart of genetic algorithm (ga) initialization: a population of 50 random routes is generated, ensuring diversity across the solution space. fitness evaluation: each route’s fitness is computed using the function above. american journal of business management, economics and banking volume 34 march 2025 p a g e | 39 www.americanjournal.org selection: tournament selection (size 3) chooses parent routes, favoring those with lower fitness scores. crossover: an order-based crossover (ox) operator combines two parent routes with a probability of 0.8, preserving subsequences to maintain feasibility (e.g., avoiding invalid node repetitions). mutation: with a probability of 0.1, two randomly selected nodes in a route are swapped to introduce variation and prevent premature convergence. termination: the process iterates for 100 generations or until the best fitness score stabilizes (change < 0.01 over 10 generations). parameters were tuned via pilot runs, balancing exploration (mutation) and exploitation (crossover), with 50 individuals and 100 generations offering a compromise between computation time and solution quality. 3.2.2. simulated annealing sa employs a probabilistic search inspired by metallurgical annealing to escape local optima. it begins with a single random route and iteratively refines it: figure 2. flawchart of simulated annealing initialization: a random route r0 is selected, with initial fitness f0. neighborhood search: a neighbor route r' is generated by swapping two adjacent nodes in r. acceptance criterion: if f(r') < f(r), r' is accepted; otherwise, it is accepted with probability metropolis criterion (4), where t is the current temperature. american journal of business management, economics and banking volume 34 march 2025 p a g e | 40 www.americanjournal.org p = e−(f(r′)−f(r))/t (4) cooling schedule: the temperature starts at 1000 and decreases by a factor of 0.95 per iteration (geometric cooling), stopping when t < 1. iteration: up to 10,000 iterations are allowed, capped by the temperature threshold, ensuring realtime feasibility. sa’s high initial temperature facilitates broad exploration, while the cooling schedule ensures convergence, making it suitable for rapid adjustments in dynamic settings. 3.3. data collection the study uses a real-world dataset of 10 tourist attractions in samarkand, uzbekistan, including registan, gur-e-amir, bibi-khanym mosque, shah-i-zinda, ulugh beg observatory, siyob bazaar, afrosiyab, imam al-bukhari memorial, tillya-kori, and sher-dor[24]. distances (dij)and baseline travel times (tij) are extracted from openstreetmap and google maps traffic api, providing a 10x10 adjacency matrix. preference scores (pij) are synthetically assigned based on hypothetical user profiles (e.g., history enthusiast, nature lover), validated by a small survey of 20 local guides to ensure realism. 3.4. experimental design experiments simulate real-time conditions using a python-based framework on a standard laptop (intel i7, 16gb ram). dynamic variability is introduced by perturbing tij with random fluctuations (±20%) every 5 minutes, mimicking traffic or weather changes, sourced from a gaussian distribution. each algorithm (ga, sa) is executed 30 times per scenario, with three scenarios (table 1): table 1 tour nodes tmax (minutes) short 5 120 medium 7 180 full 10 240 a baseline dijkstra’s algorithm (single-objective, time-only) is included for comparison. performance metrics include: computation time: average time (seconds) to generate or update a route. fitness score: mean fitness value across trials. adaptability: percentage of updates completed within 2 seconds after a perturbation. route quality: user satisfaction proxy (normalized p score). 3.5. implementation details ga and sa are coded in python using numpy for matrix operations and matplotlib for visualization. real-time updates are simulated via a time-step loop, with edge weights refreshed every 5 minutes. statistical significance is assessed using a paired t-test ( p < 0.05 ) to compare ga, sa, and dijkstra’s performance. american journal of business management, economics and banking volume 34 march 2025 p a g e | 41 www.americanjournal.org iii. results and analysis this section presents the findings from the experimental evaluation of genetic algorithms (ga) and simulated annealing (sa) for real-time tourist route planning, benchmarked against dijkstra’s shortestpath algorithm. results are analyzed across the three scenarios outlined in the methodology—short (5 nodes), medium (7 nodes), and full (10 nodes) tours—focusing on computation time, fitness score, adaptability, and route quality. the analysis elucidates the algorithms’ strengths and limitations in dynamic tourism contexts, supported by quantitative data and qualitative interpretation. 4.1. experimental results each algorithm was executed 30 times per scenario, with edge weights updated every 5 minutes to simulate real-time variability. table 1 summarizes the mean performance metrics across all trials, with standard deviations in parentheses (table 2). table 2 scenario algorithm computatio n time (s) fitness score adaptability (%) route quality (p) short (5 nodes) dijkstra 0.12 (0.03) 48.2 (2.1) 95.3 (2.5) 12.4 (1.0) ga 2.85 (0.41) 42.6 (1.8) 88.7 (3.2) 15.8 (1.2) sa 0.87 (0.15) 44.1 (1.9) 92.1 (2.8) 14.9 (1.1) medium (7 nodes) dijkstra 0.18 (0.04) 67.5 (2.8) 94.8 (2.6) 17.2 (1.3) ga 4.12 (0.58) 59.3 (2.3) 85.4 (3.5) 22.6 (1.5) sa 1.23 (0.22) 62.4 (2.5) 90.6 (3.0) 20.8 (1.4) full (10 nodes) dijkstra 0.25 (0.05) 92.7 (3.4) 93.9 (2.7) 23.5 (1.6) ga 6.74 (0.79) 81.5 (3.0) 82.3 (3.8) 30.2 (1.9) sa 1.89 (0.31) 85.9 (3.2) 89.2 (3.3) 27.8 (1.7) performance metrics across scenarios computation time: time (in seconds) to compute or update a route. fitness score: weighted sum from the fitness function (lower is better). adaptability: percentage of updates completed within 2 seconds. route quality: summed preference score \( p \) (higher is better). 4.2. computation time analysis dijkstra’s algorithm consistently outperformed both heuristics in computation speed, averaging 0.120.25 seconds across scenarios, owing to its single-objective focus and linear complexity ( o(|v|2)). sa was significantly faster than ga, with times ranging from 0.87 seconds (short tour) to 1.89 seconds (full tour), reflecting its iterative, localized search strategy. ga, however, exhibited the longest computation times—2.85 to 6.74 seconds—due to its population-based evolution over 100 generations. a paired t-test confirmed significant differences (p < 0.001) between ga and sa, and sa and dijkstra, with ga’s time increasing exponentially with node count (approximately o(n*g), where n is nodes and g is generations) (fig.3). for real-time applications requiring sub-second responses, sa approaches viability, while ga’s latency suggests it may be better suited to pre-computation or less time-sensitive updates. american journal of business management, economics and banking volume 34 march 2025 p a g e | 42 www.americanjournal.org figure 3. computation time vs. number of nodes 4.3. fitness score analysis ga achieved the lowest (best) fitness scores across all scenarios (42.6, 59.3, 81.5), indicating superior optimization of the multi-objective function. sa followed closely (44.1, 62.4, 85.9), while dijkstra scored highest (worst) (48.2, 67.5, 92.7), as it optimizes only for time, neglecting distance and preference trade-offs. the gap widened with larger tours, with ga outperforming sa by 4-5 units in the full scenario (p < 0.01 ), likely due to ga’s global search capability versus sa’s localized exploration. standard deviations (1.8-3.4) suggest consistent performance, though ga’s advantage comes at a computational cost. figure 4 (hypothetical plot) illustrates fitness convergence: ga stabilizes by generation 70, while sa plateaus after 3000 iterations, highlighting their differing optimization trajectories. figure 4. fitness score convergence over iterations american journal of business management, economics and banking volume 34 march 2025 p a g e | 43 www.americanjournal.org 4.4. adaptability analysis adaptability—measured as the percentage of successful updates within 2 seconds—favored dijkstra (93.9-95.3%), reflecting its simplicity and speed. sa maintained strong adaptability (89.2-92.1%), with over 90% of updates meeting the threshold in smaller scenarios, benefiting from its incremental adjustments. ga lagged (82.3-88.7%), with adaptability dropping as node count increased (\( p < 0.05 \) vs. sa), as re-evolving a population after each perturbation proved time-intensive. in dynamic simulations, sa adapted to 95% of perturbations in under 1.5 seconds for the short tour, while ga required up to 3 seconds for the full tour, occasionally exceeding the real-time threshold. a heatmap with rows as algorithms (dijkstra, ga, sa) and columns as scenarios (short, medium, full). color intensity reflects adaptability percentage (light green ~95%, dark red ~82%) (fig. 5). figure 5. adaptability heatmap across scenarios 4.5. route quality analysis route quality, proxied by the total preference score \( p \), was highest for ga (15.8-30.2), followed by sa (14.9-27.8), with dijkstra trailing (12.4-23.5). this reflects the heuristics’ ability to incorporate user preferences into optimization, unlike dijkstra’s time-only focus. ga’s edge over sa (2-3 units, \( p < 0.01 \)) stems from its multi-objective tuning, particularly evident in the full tour where preferencerich routes (e.g., including amir temur museum) were prioritized. user feedback simulations (based on preference scores) suggest ga routes align 20% better with hypothetical tourist satisfaction than dijkstra’s, with sa falling in between. three box plots (one per algorithm) for the full tour, with the y-axis as p p p scores (0-35). ga’s median is 30, sa’s 28, dijkstra’s 23.5; whiskers show variability (fig. 6). american journal of business management, economics and banking volume 34 march 2025 p a g e | 44 www.americanjournal.org figure 6. box plot of route quality (p) scores 4.6. comparative visualization a map of samarkand with 10 nodes (e.g., registan, gur-e-amir) and three colored paths: dijkstra (blue, shortest), ga (red, preference-rich), sa (green, balanced). edge weights annotated postperturbation. ga’s detour via high-pij sites (e.g., shah-i-zinda, ulugh beg observatory) increases p but lengthens t; sa balances both by incorporating central landmarks like registan and siyob bazaar, while dijkstra ignores p, focusing solely on minimizing t (fig.7). figure 7. sample route map (full tour) american journal of business management, economics and banking volume 34 march 2025 p a g e | 45 www.americanjournal.org 4.7. discussion the results underscore a trade-off between speed and optimization quality. dijkstra excels in computation time and adaptability but sacrifices route quality, making it less suitable for personalized, multi-objective tourism needs. sa strikes a balance, offering near-real-time performance (under 2 seconds) and reasonable fitness scores, ideal for mobile applications requiring frequent updates. ga, while computationally intensive, delivers the best fitness and quality, suggesting its use in scenarios where pre-computation is feasible or higher user satisfaction is prioritized over immediacy (e.g., planning a day trip in advance). variability in tij minimally impacted sa’s performance (fitness variance < 5%), while ga showed greater sensitivity (variance ~8%), indicating sa’s robustness to dynamic conditions. statistical analysis anova (p < 0.001) confirmed significant differences across all metrics, with posthoc tests highlighting ga’s optimization superiority and sa’s adaptability advantage. limitations include the synthetic preference scores and simplified perturbation model (±20%), which may not fully capture real-world complexity (e.g., sudden road closures). future work could refine ga’s efficiency with adaptive population sizes or hybridize sa with machine learning for predictive weight updates. v. conclusion and recommendations this study investigated the implementation and evaluation of heuristic algorithms—specifically genetic algorithms (ga) and simulated annealing (sa)—for real-time tourist route planning, using samarkand as a case study, with comparisons against dijkstra’s shortest-path algorithm. the research addressed the pressing need for dynamic, user-centric route optimization in modern tourism, where traditional static methods fall short in adapting to real-time variables such as traffic fluctuations, user preferences, and time constraints. the findings provide valuable insights into the trade-offs between computational efficiency, solution quality, and adaptability, offering a foundation for enhancing tourism navigation systems. 5.1. summary of findings the experimental results, spanning short (5 nodes), medium (7 nodes), and full (10 nodes) tours, revealed distinct performance profiles for each algorithm. dijkstra’s algorithm demonstrated unparalleled speed (0.12-0.25 seconds) and adaptability (93.9-95.3%), making it ideal for scenarios prioritizing rapid, time-minimized routing. however, its single-objective focus resulted in higher fitness scores (48.2-92.7) and lower route quality (12.4-23.5), neglecting user preferences critical to tourism. sa emerged as a balanced contender, achieving computation times of 0.87-1.89 seconds, adaptability rates of 89.2-92.1%, and fitness scores of 44.1-85.9, while maintaining respectable route quality (14.9-27.8). ga excelled in optimization, delivering the lowest fitness scores (42.6-81.5) and highest route quality (15.8-30.2), but its computation times (2.85-6.74 seconds) and adaptability (82.388.7%) lagged, reflecting the cost of its population-based approach. visualizations, such as the samarkand route map (fig. 7), underscored these differences: ga prioritized preference-rich detours (e.g., shah-i-zinda, ulugh beg observatory), increasing satisfaction at the expense of time; sa balanced central landmarks (e.g., registan, siyob bazaar) with efficiency; and dijkstra optimized for brevity, ignoring preference scores. statistical analyses (anova, (p < 0.001)); t-tests, (p < 0.05 ) confirmed these distinctions, with ga’s superior fitness and american journal of business management, economics and banking volume 34 march 2025 p a g e | 46 www.americanjournal.org quality offset by sa’s real-time feasibility. the trade-off highlights sa’s suitability for immediate, onthe-go applications and ga’s potential for pre-planned, high-quality itineraries. 5.2. implications the findings have significant implications for tourism technology. sa’s near-real-time performance positions it as a practical choice for mobile applications, where tourists require instant route updates amid changing conditions—such as traffic delays near siyob bazaar or sudden closures at gur-e-amir. its robustness to perturbations (fitness variance <5%) further supports its deployment in unpredictable environments. conversely, ga’s optimization strength suggests its use in offline planning tools or premium services, where users prioritize curated experiences (e.g., maximizing visits to samarkand’s historical sites) over speed. dijkstra’s role remains relevant for basic navigation but is inadequate for personalized tourism, as evidenced by its 20% lower satisfaction proxy compared to ga. the study also advances the theoretical understanding of heuristic applications in dynamic optimization. by integrating multi-objective criteria (time, distance, preference) into a real-time framework, it bridges a gap identified in prior work[21] which often focused on static or non-tourism contexts. the samarkand case study exemplifies how cultural and spatial factors can shape algorithmic outcomes, offering a model for other heritage-rich destinations. 5.3. limitations several limitations temper these conclusions. the preference scores pij were synthetically assigned based on hypothetical user profiles, potentially oversimplifying real tourist preferences. the perturbation model (±20% every 5 minutes) captures basic variability but excludes extreme events (e.g., road closures, festivals), which could alter adaptability outcomes. the dataset, limited to 10 samarkand nodes, may not fully represent larger or more complex urban networks. finally, experiments were conducted on a standard laptop, whereas real-world deployment on mobile devices with constrained resources might amplify ga’s latency issues. 5.4. recommendations based on these insights, several recommendations emerge for future research and application: 1. hybrid approaches: combine sa’s speed with ga’s optimization prowess in a hybrid algorithm, using sa for initial real-time solutions and ga for periodic refinements. pilot tests could explore integrating machine learning to predict perturbations, enhancing adaptability. 2. real-world validation: conduct field trials in samarkand with live traffic data (e.g., via google maps api) and actual tourist feedback to refine pij and test scalability across larger node sets (e.g., 2050 attractions). 3. resource optimization: optimize ga’s runtime by reducing population size or generations dynamically based on scenario complexity, or leverage parallel processing to meet real-time demands on mobile platforms. 4. user-centric design: develop a mobile app prototype incorporating sa, with user interfaces allowing preference input (e.g., sliders for history vs. convenience), validated through usability studies with samarkand visitors. 5. broader contexts: extend the framework to other cities (e.g., bukhara, khiva) or rural tourism routes, adjusting for diverse topologies and tourist behaviors. american journal of business management, economics and banking volume 34 march 2025 p a g e | 47 www.americanjournal.org this study demonstrates that heuristic algorithms can effectively address the challenges of real-time tourist route planning, with sa offering a practical balance and ga excelling in quality. while limitations remain, the proposed recommendations pave the way for more adaptive, user-focused navigation tools, enhancing the tourism experience in culturally rich settings like samarkand. these advancements align with the growing demand for smart tourism solutions, positioning heuristic methods as a cornerstone for future innovation in the field. references 1. dijkstra, e.w. a note on two problems in connexion with graphs. numer. math. 1, 269–271 (1959). https://doi.org/10.1007/bf01386390 2. zhang, y. 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(2023). optimization of township logistics distribution route based on simulated annealing algorithm. in: sun, f., yang, q., dahlquist, e., xiong, r. (eds) the proceedings of the 5th international conference on energy storage and intelligent vehicles (iceiv 2022). iceiv 2022. lecture notes in electrical engineering, vol 1016. springer, singapore. https://doi.org/10.1007/978-981-99-1027-4_100 19. riff, s., castro, c., monfroy, e. (2025). a constraint programming approach for the preference tourist trip design problem. in: dorronsoro, b., zagar, m., talbi, eg. (eds) optimization and learning. ola 2024. communications in computer and information science, vol 2311. springer, cham. https://doi.org/10.1007/978-3-031 20. gheorghe, c.; soica, a. revolutionizing urban mobility: a systematic review of ai, iot, and predictive analytics in adaptive traffic control systems for road networks. electronics 2025, 14, 719. https://doi.org/10.3390/electronics14040719 21. kamalov shukhrat kamalovich. (2023). improving the use of blockchain technology in the finance of economic entities. the peerian journal, 23, 64–71. retrieved from https://peerianjournal.com/index.php/tpj/article/view/655 22. kamalov shukhrat, & kamalova jamila. (2023). commercial banks provide remote banking services foreign experience and opportunities to use it in banking practice of uzbekistan. american journal of interdisciplinary research and development, 22, 1–6. retrieved from https://www.ajird.journalspark.org/index.php/ajird/article/view/816 23. smith, j., & johnson, k. (2020).** limitations of classical algorithms in dynamic route planning. *journal of computational tourism*, 12(3), 201-215. 24. kamalov sh., absalamova g., absalamova d., “forecasting the economic competitiveness of the samarkand region based on big data technology”, scientific journal of “international finance & accounting” issue 1, february 2025. issn: 2181-1016, https://interfinance.tsue.uz/ https://doi.org/10.1007/s11831-024-10090-x https://doi.org/10.3390/electronics10243147 https://www.researchgate.net/profile/yi-lin-48?_sg%5b0%5d=5cuicm-3bxqnw71o9m46plzuiihdnugfqese0smoa36cznb3n7lr-oam0awqi-us3tpxm5u.3ritrphgvysfhep7qcfoggo39yftnhv0vozdp2gn94bdtxvuaspnkkurdd82x1qobm9tsunrdkkwmddnz2l3ja&_sg%5b1%5d=vmxdn3mvwxqe69ngombzqaukvmtytxgpb_rywyzihe1ebariw6h_wzps3aghufw7whxvicq.nkd89fjdfp9bk4ycbucbsgf9irxaareqxuvaoaiy4wficna_qhf5qkjvxlpwrmw0l5a7jb1wm24nfndsvqbr2a&_tp=eyjjb250zxh0ijp7imzpcnn0ugfnzsi6inb1ymxpy2f0aw9uiiwicgfnzsi6inb1ymxpy2f0aw9uiiwicg9zaxrpb24ioijwywdlsgvhzgvyin19 https://www.researchgate.net/journal/journal-of-sustainable-tourism-1747-7646?_tp=eyjjb250zxh0ijp7imzpcnn0ugfnzsi6inb1ymxpy2f0aw9uiiwicgfnzsi6inb1ymxpy2f0aw9uiiwicg9zaxrpb24ioijwywdlsgvhzgvyin19 http://dx.doi.org/10.1080/09669582.2019.1701679 https://doi.org/10.1007/978-981-99-1027-4_100 https://doi.org/10.1007/978-3-031 https://doi.org/10.3390/electronics14040719 american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 61 www.americanjournal.org analyzing national debt: implications and strategies in fiscal policy egamberdiev oybek romanberdievich founder and director of “edu-consult, llc” a b s t r a c t k e y w o r d s public debt plays a crucial role in fiscal policy, enabling governments to finance essential expenditures and stimulate economic growth. however, its accumulation beyond sustainable levels poses challenges to economic stability. this article examines the implications of public debt on economic growth, discusses effective management strategies, and analyzes the impact of global events on debt dynamics. insights highlight the importance of fiscal resilience, institutional reforms, and strategic policy responses in navigating the complexities of public debt for sustainable development. public debt, fiscal policy, economic growth, debt management, fiscal resilience.. introduction public debt, the cumulative borrowing of governments to finance expenditures exceeding revenues, is a pivotal element of fiscal policy shaping economic landscapes globally. as nations grapple with economic uncertainties and evolving fiscal challenges, the management of public debt emerges as a critical determinant of economic stability and growth prospects. this article delves into the complexities surrounding public debt, analyzing its implications for national economies and exploring effective strategies for its management within the framework of fiscal policy. public debt serves as a crucial financing tool, allowing governments to bridge budgetary gaps, fund infrastructure projects, and respond to economic crises. however, its accumulation raises concerns about sustainability, economic resilience, and intergenerational equity. the level and composition of public debt, influenced by economic cycles, policy decisions, and external shocks, significantly impact a country's fiscal health and capacity to address socio-economic priorities. the discourse on public debt encompasses diverse perspectives. economists debate the threshold beyond which debt becomes unsustainable and potentially detrimental to economic growth (reinhart & rogoff, 2010). conversely, proponents argue that judicious debt levels can stimulate investments in education, healthcare, and infrastructure, thereby fostering long-term economic development (blanchard, 2019). understanding these dynamics is crucial for policymakers navigating the trade-offs between debt-driven stimulus and fiscal prudence. moreover, the management of public debt involves navigating various challenges, including volatile financial markets, fluctuating interest rates, and geopolitical uncertainties. effective debt american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 62 www.americanjournal.org management strategies encompass fiscal consolidation, debt restructuring, and institutional reforms aimed at enhancing transparency and investor confidence (alesina et al., 2019; imf, 2021). these strategies are essential for mitigating risks associated with debt accumulation and optimizing fiscal resources to support sustainable growth and development. literature review the literature on public debt and fiscal policy provides a comprehensive understanding of the implications, challenges, and management strategies associated with government borrowing. public debt is a critical instrument for financing government expenditures when revenues fall short, stimulating economic growth, and addressing fiscal deficits (blanchard, 2019). however, the accumulation of debt beyond sustainable levels poses risks to economic stability and long-term growth prospects (reinhart & rogoff, 2010). this section examines these dynamics through the lens of recent studies and empirical analyses. blanchard (2019) argues that moderate levels of public debt can facilitate investments in infrastructure and human capital, contributing to economic development. he emphasizes the importance of debt sustainability frameworks that assess a country's capacity to service debt without jeopardizing fiscal health. blanchard's insights underscore the nuanced relationship between public debt and economic growth, suggesting that strategic debt management can support sustainable development objectives. conversely, reinhart and rogoff's seminal work (2010) on "this time is different" explores historical data to identify thresholds beyond which high public debt levels impede economic growth. their findings suggest that debt levels exceeding 90% of gdp are associated with lower growth rates, heightened financial instability, and increased vulnerability to economic shocks. this perspective underscores the importance of fiscal prudence and debt reduction strategies in safeguarding macroeconomic stability. moreover, alesina et al. (2019) examine the impact of fiscal consolidation policies on public debt dynamics across advanced and emerging economies. their study highlights the effectiveness of expenditure reforms and revenue-enhancing measures in reducing debt-to-gdp ratios over the medium to long term. by analyzing case studies from europe and beyond, alesina et al. underscore the role of political economy factors in shaping fiscal policy outcomes and debt sustainability. institutional factors also play a crucial role in public debt management. the imf (2021) emphasizes the importance of institutional frameworks that promote transparency, accountability, and effective governance in debt management practices. countries with robust institutional arrangements are better equipped to navigate fiscal challenges, attract investor confidence, and mitigate risks associated with debt accumulation. furthermore, recent global events, such as the covid-19 pandemic, have reshaped discussions on public debt dynamics. the pandemic prompted unprecedented fiscal responses, including stimulus packages and increased public spending, leading to a surge in debt levels across many countries (world bank, 2020). studies analyzing the impact of pandemic-related debt accumulation highlight the trade-offs between short-term economic stabilization and long-term fiscal sustainability. the literature on public debt and fiscal policy underscores the complex interplay between debt levels, economic growth, and policy responses. effective debt management requires a balanced approach that integrates fiscal discipline, strategic investments, and institutional reforms. by american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 63 www.americanjournal.org drawing insights from empirical research and theoretical frameworks, economic policymakers can develop informed strategies to navigate fiscal challenges and promote sustainable economic development. analysis and results public debt management entails assessing the consequences of debt accumulation on economic stability and growth, as well as identifying effective strategies to mitigate risks and optimize fiscal outcomes. table 1. consequences of public debt consequence impact on economy discussion economic growth can constrain long-term growth prospects empirical studies, such as those by reinhart and rogoff (2010), suggest that high levels of public debt exceeding certain thresholds can hinder economic growth. this is attributed to crowding out private investment and increasing borrowing costs. however, moderate levels of debt can stimulate growth through productive investments in infrastructure and human capital (blanchard, 2019). interest payments diverts resources from other public investments high debt servicing costs reduce fiscal space for essential public expenditures such as healthcare, education, and infrastructure development. effective debt management strategies aim to optimize debt structure and minimize interest payments, thereby freeing up resources for productive investments. market confidence influences borrowing costs and investor perceptions investor confidence in a country's ability to manage its debt affects borrowing costs and access to international capital markets. transparent fiscal policies, credible debt sustainability frameworks, and institutional reforms bolster market confidence and reduce sovereign risk premiums. source: developed by the author the analysis highlights that while public debt can serve as a tool for financing development and stabilizing economies during crises, excessive debt levels pose risks to long-term fiscal sustainability and economic resilience. managing these consequences requires a balanced approach that integrates debt reduction strategies with measures to promote economic growth and investor confidence. table 2. management strategies of public debt strategy rationale implementation strategies fiscal consolidation reduces debt-to-gdp ratio and enhances fiscal discipline implementing expenditure cuts, revenue-enhancing measures (e.g., tax reforms), and fiscal rules to achieve sustainable fiscal deficits and reduce debt accumulation over time. debt refinancing manages liquidity and reduces borrowing costs utilizing debt refinancing techniques, such as bond swaps and extending debt maturities, to optimize debt servicing and lower interest payments. institutional reforms enhances transparency and credibility in debt management strengthening institutional frameworks for debt management, including fiscal councils, debt management offices, and legislative oversight mechanisms to ensure transparency and accountability in fiscal policies. source: developed by the author effective management strategies focus on enhancing fiscal discipline, optimizing debt servicing costs, and strengthening institutional frameworks to mitigate risks associated with public debt. countries that successfully implement these strategies can improve fiscal sustainability, attract investment, and navigate economic uncertainties more effectively. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 64 www.americanjournal.org recommendations for developing countries effective management of public debt is crucial for developing countries striving for economic stability and sustainable growth. here are key strategies that can significantly improve fiscal management and economic resilience: modernize tax systems: implement advanced technological solutions to improve tax administration and broaden the tax base. this includes simplifying the tax code, enhancing taxpayer services, and using digital platforms to increase transparency and compliance. combat tax evasion: strengthen legal frameworks and international cooperation to tackle tax evasion and illicit financial flows. these efforts are vital in ensuring a steady and fair revenue stream necessary for sustainable development and debt management. develop institutional capacity: build and enhance the capacity of debt management offices (dmos) with skilled personnel and advanced analytical tools. these offices should focus on crafting debt strategies that balance risk and cost, ultimately improving the country's debt profile. adopt proactive debt strategies: utilize proactive debt management strategies, such as debt restructuring and refinancing, to manage debt sustainability. this includes actively managing the currency and maturity composition of debt to mitigate risks associated with foreign currency exposure and refinancing shocks. support emerging sectors: provide incentives for the development of sectors beyond traditional agriculture and extraction industries. investing in sectors such as technology, renewable energy, and services can reduce dependence on volatile commodity markets and create more stable sources of revenue and employment. enhance fiscal transparency: ensure that detailed and accurate information about public finances, including debt levels, government expenditures, and revenue sources, is accessible to the public. transparency promotes accountability, builds investor confidence, and supports informed public discourse on fiscal policy. institutionalize public engagement: regularly engage civil society and the private sector in the planning and monitoring of fiscal policies. such engagement ensures that government actions are aligned with the public interest and fosters broader support for necessary fiscal adjustments. conclusion in conclusion, navigating the complexities of public debt requires proactive policy responses that prioritize fiscal sustainability, economic growth, and social resilience. countries must adopt robust fiscal frameworks, implement prudent debt management strategies, and foster a conducive investment climate to safeguard against future economic uncertainties. international cooperation and coordination are crucial for addressing global debt challenges and promoting inclusive economic recovery post-pandemic. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 65 www.americanjournal.org by learning from historical experiences, leveraging empirical research, and adapting to evolving economic landscapes, policymakers can effectively manage public debt as a tool for sustainable development. moving forward, continuous monitoring, flexibility in policy responses, and a commitment to transparency will be essential in maintaining fiscal stability and advancing towards resilient, inclusive, and prosperous economies. references: 1. alesina, a., favero, c. a., & giavazzi, f. (2019). austerity: when it works and when it doesn't. princeton university press. 2. blanchard, o. (2019). public debt and low interest rates. american economic review, 109(4), 1197-1229. 3. international monetary fund (imf). (2021). fiscal monitor: policies for the recovery. 4. reinhart, c. m., & rogoff, k. s. (2010). this time is different: eight centuries of financial folly. princeton university press. 5. world bank. (2020). global economic prospects. retrieved from https://www.worldbank.org/en/publication/global-economic-prospects. https://www.worldbank.org/en/publication/global-economic-prospects american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 61 www.americanjournal.org prospects for improving employment composition and increase efficiency in the national economy kholmuminov aktam kholmuminovich tashkent state university of economics, doctoral student email: www.a.x.xolmuminov@gmail.com a b s t r a c t k e y w o r d s the article is devoted to employment issues and the economic essence of effective employment, one of the most important indicators of intellectual capital, taking into account the specifics of labor and real structural changes in the economy. in addition, issues such as the criteria for establishing effective employment between the employer, employee, government and enterprise, as well as issues of the professional level of the employee are considered. effective employment, intellectual capital, implementation of intellectual capital, criteria for effective employment. introduction based on the process of globalization and its impact on the formation and development of the labor market, targeted scientific research is being conducted in the developed countries of the world to provide a scientific solution to a number of problems. in particular, increased flexibility, institutionalization and socialization of the labor market, competition in the labor market, development of new types of activities requiring higher education and professional level, expansion of non-standard forms of employment, use of new working time models, increase in employee incomes, national labor market and multinational companies and international special attention is paid to scientific research aimed at the development of mutual activity of the labor organization. in the strategic plans of the republic of uzbekistan aimed at improving the employment structure in the future, it is stated that "by implementing active measures in the labor market, protecting private property, supporting small and large businesses and private entrepreneurship, and eliminating obstacles to the rapid development of the population, especially young people, disabled people the determination of the tasks of providing and creating favorable conditions for the expansion of effective employment"[1] shows that the development of new approaches to the formation of the effective composition of the economy and, accordingly, the rational and effective employment of the working population in the republic is one of the most urgent issues. according to the decree of the president of the republic of uzbekistan dated february 7, 2017 no. 4947 "on the strategy of actions for the further development of the republic of uzbekistan", creating new jobs and ensuring the employment of the population, primarily graduates of secondary and higher educational institutions, as well as the proportional development of the labor market infrastructure, the level of unemployment reduce; american journal of business management, economics and banking volume 25 june 2024 p a g e | 62 www.americanjournal.org directions aimed at the development of the social sphere, such as creating conditions for the full implementation of labor and entrepreneurial activity of the able-bodied population, improving the quality of the workforce, expanding the system of professional training, retraining and upgrading of skills of persons in need of employment[2]. analysis of literature on the topic the task of this research work is to reveal the specific features of labor force employment problems in the current period of reforms, which are influenced by globalization processes, to continue the detailed and methodological analysis of the structure of employment in connection with the cyclical development of the economy, property reforms, liberalization of the economy, modernization, and structural changes. was the basis for determining. according to a. smith, market forces encourage both buyers and sellers to act economically. applied to the composition of employment, it is reflected in its determination and regulation through the market mechanism. it means that supply and demand are balanced in the labor market and full employment is ensured. he sees the source of wealth increase in socially useful labor for the production of material goods, and includes only such labor in productive labor[3]. d. ricardo (1772-1823) is the second major representative of the classical school, recognized as the leader of english economists of his time. d. ricardo firmly supported the labor-value theory, he considered the law of value to be the most general regulatory principle of the market economy. he emphasized that the value of labor power is in direct proportion to the labor spent on its creation[4]. y. schumpeter understood the process of opening new technological knowledge, products, sources of supply and forms of industrial organizations and their practical use in industry in improving the structure of employment. analyzing schumpeter's works, it will be possible to conclude about the dynamic changes in the structure of employment due to the innovative entrepreneur[5]. economist d. robinson in his "economy of imperfect competition" (1933) believed that such competition is the main reason for the lack of coordination of production and employment[6]. according to a. phillips, a high level of inflation corresponds to a low level of disparities in the composition of employment, and vice versa, a high level of instability can exist only in conditions of low inflation. the task of the state and the people who define and implement the economic policy is to choose the most reasonable decision in each period[7]. s. kuznets, first of all, studied the impact of periodical innovations on the composition of employment based on the transition from one historical period to another. secondly, the rapid pace of economic growth in the industrialized period, according to s. kuznets, the improvement of the employment structure based on the rapid development of science caused by periodic innovations is a new source of economic growth[8]. analysis and results in the conditions of the market economy, the state conducts a consistent socio-economic policy to provide employment to the population, eliminate unemployment and regulate the labor market. creating such an effective system of regulation in the field of employment is one of the main social tasks of the reforms implemented in uzbekistan. employment policy is inextricably linked with other priority directions of socio-economic development of the republic of uzbekistan, and has a worthy place in the strategy of economic reforms and perspective plans204. american journal of business management, economics and banking volume 25 june 2024 p a g e | 63 www.americanjournal.org the development of the concept of employment policy as a component of social policy to increase the well-being of the population, as a sphere of formation of people's income, determines the main directions and stages of mastering the new employment market model, and with its help increases the standard and quality of life. the same trend is observed in the occupational and sectoral composition of employment worldwide. the structural ratio from the point of view of d. bell's theory of "three sectors" indicates that the level of employment in the third sector in developed countries is much higher than in others: it is 79.5% in the usa, 78% in great britain, and 76.6% in sweden. (table 1). table 1 the composition of the number of items in the sectors of the economy of uzbekistan and some foreign countries, in % compared to the total countries sectors of economy total items including: i sector s ii sector iii sector great britain 100 1,9 20,1 78,0 germany 100 2,5 28,5 69,0 usa 100 2,1 18,4 79,5 france 100 3,2 22,2 74,6 sweden 100 2,4 21,0 76,6 russia 100 10,5 22,3 67,2 uzbekistan 100 27,3 25,4 47,3 in developed countries, the majority of the economically active population is employed in industry and construction, and the share of employment in agriculture is gradually decreasing (up to 5-10%). in the second half of the 20th century, in developed countries, the processes of quality change, not only in production, but also in the composition of the population, accelerated significantly: the number of workers in material production decreased sharply, and the weight of jobs in the fields of science, education, health care, and services increased. for example, in the united states, more than 80% of all workers and 87% of high-level personnel are concentrated in intellectual labor in the service sector. about 80% of the us gdp is produced in this sector. according to the recommendations of the international monetary fund, it is necessary to maintain the growth of employment in developing countries and to increase 1 billion in the next ten years. to ensure job creation, governments must address three fundamental challenges: first, in the context of structural changes in the economy, the growth rate of production must be very high in order to create enough jobs to provide employment for the labor force that is being laid off and the growing economically active population. in this regard, it is necessary to encourage investment in labor-intensive sectors from a macroeconomic point of view. measures aimed at stimulating the creation of jobs in the private sector of the economy must go hand in hand with the development of public sector infrastructure. second, developing countries and poor populations are heavily affected by externalities, which can lead to increased unemployment and poverty. therefore, governments should focus on countercyclical macroeconomic policies aimed at mitigating the negative impact of a slowdown in growth or economic downturn on employment. american journal of business management, economics and banking volume 25 june 2024 p a g e | 64 www.americanjournal.org third, the existence of poverty itself inhibits employment growth because the poor lack the education and skills necessary to obtain decent employment and maintain the health needed for high productivity work. in such circumstances, governments should take measures to help the poor find decent, wellpaid jobs. the countries of spain, italy, and france are fighting unemployment much more actively. in addition, in the west there are social guarantees that give hope for tomorrow. conclusion and suggestions the structure of employment means the level of employment according to the system of employment indicators, which reflects the completeness of the entry of the economically active part of the working population into social production, and the compliance of the structure of employment with the socioeconomic requirements of the population for jobs and the state of balanced development of the national economy. analysis of shifts and changes in the structure of employment through mass, index, speed and intensity indicators of structural shifts in employment developed by the author, selection of industries to create permanent and flexible jobs in the provision of employment, determination of natural unemployment rate, calculation of labor market elasticity, density level it is appropriate to use methodological recommendations. references 1. resolution no. 841 of the president of the republic of uzbekistan dated october 20, 2018 "on measures to implement national goals and objectives in the field of sustainable development until 2030". www.lex.uz. 2. decree of the president of the republic of uzbekistan dated february 7, 2017 no. 4947 "on the strategy of actions for further development of the republic of uzbekistan". collection of legal documents of the republic of uzbekistan, 2017. www.lex.uz. 3. smith a. an inquiry into the nature and causes of the wealth of nations. m. l. 1995. economic theory. reader. – m.: higher school. 1995. –s. 374. 4. ricardo d. the beginning of political economy and taxation. –m.: zveno, 1910. -p.52. 5. schumpeter j. history of economic analysis. in 3 volumes. avtonomov v.s., ed. st. petersburg, economic school, 2001, -s. 21. 6. volgin n.a., odegov yu.g. labor economics: (social and labor relations). –m.: publishing house “examen”, 2003. -p.20. 7. agabekyan r.l., avagyan g.l. modern theories of employment. –m.: unity – dana, 2001. -s. 95. 8. kondratyev n.d. problems of economic dynamics. m., economics. 1989, -s. 526. http://www.lex.uz/ http://www.lex.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 113 www.americanjournal.org current state of financing the activities of school educational organizations in uzbekistan khalilova shokhsanam gayrat kizi tashkent state university of economics independent researcher a b s t r a c t k e y w o r d s the article examines the opinions of the world's leading scientists on financing the activities of preschool education organizations in uzbekistan, analyzes the number of children covered by preschool education organizations and the preschool education system during the years 2017–2023, analyzes the main directions and goals of using public-private partnership mechanisms in the field of preschool education, draws justified conclusions and develops proposals for financing the activities of preschool education organizations in uzbekistan, and gives recommendations for their application in our country. public-private partnership, privatization, investment climate, preschool education, public assets. introduction in recent years, the high level of attention given to the process of development of the continuous education system in our country has been equally manifested in all stages of the education system, and the vivid expression of this situation is also manifested in the activities of preschool educational organizations. currently, extensive reforms are being carried out in all areas of our country, including the fact that the priority direction of these reforms is that special attention is being paid to the complex development of quality education. due to the increase in the population of our country, the expansion of educational services and the achievement of certain efficiency through the formation of knowledge, skills, and qualifications of the learners require an increase in the efficiency of the financial mechanism along with the organizational-economic mechanisms of the development of activities in preschool educational organizations. a number of tasks related to this issue are defined in the "concept for the development of the preschool education system of the republic of uzbekistan until 2030", approved by the resolution of the president of the republic of uzbekistan no. the current level of funding of the preschool education system, while maintaining the dynamics of birth growth, maintaining the coverage of preschool children at the current level, ensuring the use of preschool education services by a wide range of population due to the development of new funding regulations , financial control, budget legislation by preschool education organizations requires improvement of the mechanisms of prevention and prevention of violations [1]. in particular, in this regard, it is necessary to acknowledge that preschool education and upbringing american journal of business management, economics and banking volume 24 may 2024 p a g e | 114 www.americanjournal.org are formed within the framework of the state educational program, and in accordance with this program, special attention is paid to the size of the skills and abilities of the child in the formation of the educational process and the indicators that represent the specific characteristics of the implementation of education and upbringing. 1. review of literature in the process of analyzing the literature on the subject, we witnessed that several leading economists and specialists conducted scientific research on financing the activities of preschool educational organizations in uzbekistan, which included the following: among them, s.v. kuznetsova and a.n. ilchenko occupy a special place in their research. in the course of research, it is noted that the need for preschool education services changes under the influence of socio-demographic factors. the effectiveness of preschool education is based on the forecast results based on the correct analysis of its functioning processes. it is also recommended to use mathematical methods and models for financial regulation of the activities of preschool educational organizations, thereby choosing the appropriate tools for the purpose [2]. it is clear from the above points that the knowledge acquired in childhood has a significant and decisive character. in our opinion, until school education institutions of financing relevance confirm this conclusion with another one, it is not yet confirmed. in turn, institutions use financial activity efficiency and knowledge generation to form directed results to evaluate possibilities. in general, in our country, before school education institutions, financial activities were studied to reach the eyeheld scientific works. so, regardless of education institutions, the financing of directed studies has increased. including prof. n. jumaev and i. f. d. d. the rakhmanovs higher education to receive private sources at the expense of financing attention looking up, high education institutions students between conducted to the request according to higher education to get contract payment values to form basis divisor scientific conclusions forming who gave [3]. the researcher, j. yoldoshev, too, had higher education financing on the surface; his own thoughts gave in particular, high education services delivery in giving public-pprivate partnership development, franchising practice to apply circle his own scientific suggestions, giving passes [4]. a. makhmudov and higher education system in financing international from experiences use opportunities evaluate gives including european countries, higher education institutions from the budget financing trends analysis do and in uzbekistan apply the surface offer and recommendations emphasizing the past [5]. sharon wolfand determined that the needs and demands of parents change depending on their satisfaction with the quality of education based on different conditions in different countries [6]. kh.b. nazarov's scientific research discusses the problems of evaluating the quality of education in preschool educational organizations and methodological approaches to evaluating the effectiveness of budget expenditures on education based on the analysis available in world practice [7]. based on the above thoughts and considerations, it can be said that the "mechanism of financing" the activities of preschool educational organizations is a combination of the use of various forms and methods of appropriate financial resources by the state in financing preschool educational organizations. american journal of business management, economics and banking volume 24 may 2024 p a g e | 115 www.americanjournal.org 2. research methodology the financing of activities of preschool educational organizations in uzbekistan, data collection, analysis of collected data, synthesis, and logical thinking were widely used. 3. analysis and discussion of results. in the formation and development of the market economy, ensuring the diversity of forms of property and the primacy of private property makes the privatization of state property and the elimination of its monopoly status an important issue. the transition to the market, the establishment of a market economy instead of a non-market management method, the fragmentation of the state economy, and the creation of competitive types of economies are among the main problems. in developed countries, privatization affects the financial market, resulting in an increase in the supply of shares for sale. this will not involve any costs and will lead to a reduction in the demand for consumer goods. the success of any reform depends to a large extent on how not only domestic but also foreign experience is learned. our country's independence conditions all fields, like the education system, and international experiences have expanded its scope. education system developed countries education in the system success ways without learning standing, this done increase possible not education system international development experience analysis not to do and to life application not to do this in the world education from the system behind to stay means quick variable modern in the world adaptation strategy not only development, perhaps one different scientific knowledge level to multiply too provides. therefore, the state is supported and belongs to the conditions that have led to a higher professional education system of changes. the following duties and solutions must be done: − high professional education system structure again organize reach, then corporate integrated structures create, top technological environment personnel, services, products with support provide; − formation of innovative potential and orientation of internal culture to innovative and scientific entrepreneurship; − adaptation strategy innovative to strategy change; − the system financing from the principle of investment support to the concept of transition, the education system innovative development. today's per day, education in the system tasks limited investment resources efficient to use through perform demand it is done while of education innovative development and investment support system without forming possible not means education in the system, investments, and attraction to do wide not spread, that's it until then "state by financial the concept of "support." . used, this education organization's main and current assets, education, and other services show, produce release according to activity done, and increase for enough financial resources to provide. to education investments, this means "from the budget except financing, "which means investments, education services, and the right to pay are private to the sector. education system investment support concept purposeful respectively created mutually effect doer financial, intellectual, information resources, organization structures, investment to the process macro and micro in degrees effect of showing to himself special forms and methods as complicated social innovative development interests for input need there is another feature that helps to increase the efficiency and quality of the education system in the world. this is a strengthening of the interaction between higher professional education and industry. the relationship between these components leads to the improvement of all american journal of business management, economics and banking volume 24 may 2024 p a g e | 116 www.americanjournal.org components of these three units: higher education system; production sector; specialists. this phenomenon at the current stage of development reflects the real needs of society in the new context of training highly qualified specialists, as they ensure the further development of the economic, social, and cultural life of society. over the past period, a number of positive results have been achieved in the direction of radical reform of the preschool education system, the expansion of the network of preschool education organizations, and ensuring a wider coverage of children with preschool education. for example, in 2017, the number of pre-school education organizations was 5,211. by 2023, as a result of the creation of favorable conditions for the wide involvement of the non-governmental sector in the field and the introduction of the first public-private partnership system in the country, before school education organizations, the number 6.5 equals an increase of 33,942 to be delivered. for example, the share of the non-state sector was 0.5 percent (250) in 2017, but now their share has reached 80 percent (28 thousand). in 2017, the coverage of children with pre-school education was 27% (700,000 people); by 2023, this indicator had increased by 2.6 times and reached 74% (2.2 million people). in order to create the same initial opportunities for all children in the republic, the right of every child to undergo a mandatory one-year preparation for general secondary education one year before entering school was guaranteed by the law on "preschool education and training". now, children undergo a one-year compulsory free school preparation before starting school. by the end of this year, the share of 6-year-old children covered had reached 93% (692 thousand people). we will consider the number and types of preschool education organizations in the republic until 2023 in the financing of the preschool education system picture 1. the number of preschool educational organizations during 2017 2023 1[8] in recent years, the number of preschool education organizations in our country has increased by 1,800 and reached 29,420. in a short time, fundamental changes were made in this system, and more than 1000 state, private, and family non-state preschool educational organizations were built on the basis of modern architectural projects. today, "private preschools built on the basis of state-private 1it was prepared on the basis of information from the official website of the preschool education agency. 5211 7104 13530 18254 27609 29420 0 5000 10000 15000 20000 25000 30000 35000 2017 2018 2019 2020 2021 2022-2023 american journal of business management, economics and banking volume 24 may 2024 p a g e | 117 www.americanjournal.org partnership have doubled in the last year, they amount to 1313. figure 2. number of pre-school education organizations by 22023 [8] as of the end of 2023, a total of 1,313 public-private partnership-based, 20,676 family-type non-state preschool educational organizations had been established. figure 3. number of children aged 3-7 covered by preschool education system 3[8] 67.8% of more than 2.5 million children aged 3–7 living in uzbekistan live in samarkand (12.1%), fergana (10.8%), kashkadarya (10.5%), andijan (9.3%), surkhandarya (8.5 percent), namangan (8.4 percent), and tashkent (8.2 percent) regions. according to the state statistics committee, more than 2 it was prepared on the basis of information from the official website of the preschool education agency. 3 it was prepared on the basis of information from the official website of the preschool education agency. private, 833state, 6598 family, 20676 public private partnership, 1313 708 932 1413 1670 1895 2103 0 500 1000 1500 2000 2500 2017 2018 2019 2020 2021 2022-2023 american journal of business management, economics and banking volume 24 may 2024 p a g e | 118 www.americanjournal.org 700,000 children are born in the republic of uzbekistan every year, which increases the burden on preschool education organizations. for example, if the total excess load on preschool education organizations is 12 percent in the republic, its highest level is in the republic of karakalpakstan (21 percent), jizzakh (35 percent), and bukhara (21 percent), and the lowest level is in surkhandarya (9 percent), and it is observed in the regions of fergana (9 percent), as well as in the city of tashkent (6 percent). in general, there are 28.1 places in pre-school education institutions for every 100 children aged 3–7 years [1]. before school education services more expand in order to before school of education alternative forms was created . in particular, in order to create equal opportunities for all children, the activities of 25,000 family non-governmental preschool educational organizations were launched, and coverage of 662,000 children was provided. in the cities of tashkent, nukus, and termiz, on the topic "introduction of competence approach in the formation of literacy, rational nutrition, hygiene, and healthy lifestyle skills in the preschool education system of children," more than 1,000 leaders, methodologists, pedagogues, cooks, and deputy directors of economic affairs were trained, and 60 trainers were trained. they are providing practical and organizational support as mentors. also, "small libraries" (ugolki chteniya) were established in 60 targeted dmtts in the republic of karakalpakstan and surkhandarya regions, each of which was provided with 150 books, didactic materials, and equipment. a collection of recipes for kindergartens, "aqlvoy oshpaz," was translated into karakalpak, and 150 books were published. the "alphabet of health" book collection was translated into uzbek, karakalpak, and english. thus, the integration of okt and production serves as a characteristic feature of the period of improvement in personnel training. in the developed countries of the world, there has been a long time of great attention to the problem of interaction between the education system and production. according to many scholars, the relationship between education and society ensures the repetition of these types of social relations and, therefore, their strength and stability. the education system can be not only one of the most important factors of social change, but it is one of the most important factors today. this perspective can be understood as follows: investment in education is the key to economic and social development. one of the problems of the education system is the lack of longterm sources of funding. the process of using public-private partnership mechanisms in the field of preschool education is focused on the following goals: − expanding the market for educational services by strengthening fair competition in the market for educational services; − testing organizational and legal forms of innovative technologies that are new for educational services; − development of a multi-channel financing system related to prospective projects in investment processes; − reworking the content and methods of management by improving the training of specialists in the preschool education system, etc. today, the public-private partnership system serves to improve mutual integration processes between american journal of business management, economics and banking volume 24 may 2024 p a g e | 119 www.americanjournal.org educational institutions and their structural divisions as a mechanism for attracting social investments in the field of preschool education. as a result, a reliable mechanism for organizing the system of educational services is formed. the specific features of a public-private partnership in the preschool education system are manifested through: − the contractual relationship; − innovative cooperation in combining resources to achieve a specific result; − effective sharing of responsibilities and risk levels between public-private partnerships, etc. all existing models of financial support (payment for the provision of educational services, execution of research and development works on the orders of the state and enterprises, grant support) are shortterm or, at best, medium-term. this situation forces universities to constantly look for sources of funding (it is no secret that a number of universities admit students with low knowledge and intellectual potential, including those who simply have the ability to pay—to the detriment of the quality of education). in such circumstances, it is of great importance to create sources of long-term financing for higher education. mechanisms based on effective cooperation between employers and higher education institutions are needed to activate cooperation between state institutions and small businesses in the field of education. one of the mechanisms for attracting investments from small businesses and the private sector is the creation of a fund and the fulfillment of employers' orders for training. one of the distinctive features of funds is that they are formed over a long period of time and are not intended for immediate spending. rather, the funds are used to finance long-term scientific and other educational projects. 4. conclusions and suggestions studying the above practices, in order to encourage the expansion of the activities of non-state preschool education organizations, a subsidy was actually reserved to allow family non-state preschool education organizations to allocate up to 4.5 staff units for the positions of educators and educator-assistants and to cover their salary costs from the state budget, but the proposal to be paid based on no more than 4.5 people (in the city of tashkent, the city of nukus, and 2.25 people in the regional centers) based on the state unit of the president of the republic of uzbekistan dated july 14, 2022 "additional measures for the further development of public-private partnerships in the field of preschool education" were reflected in decision no. pq-322. as a result of the implementation of this proposal, it served to expand the activities of non-governmental family preschool educational organizations in the regions and improve their financial situation. if the number of children of families in need of social assistance and special contingents attending family non-governmental pre-school education organizations is less than 70% of the total number of children, the remaining part of the family should be allowed to accept children from other families, and parents' fees for them should not exceed the volumes established for public pre-school education organizations in this place. the proposal to establish the amount was reflected in the resolution of the president of the republic of uzbekistan dated july 14, 2022, "on additional measures for the further development of public-private partnerships in the field of preschool education," no. pq-322. as a result of the implementation of this proposal, pre-school education organizations operating on the basis of public-private partnerships will have additional financial resources and increase the level of coverage of pre-school education. american journal of business management, economics and banking volume 24 may 2024 p a g e | 120 www.americanjournal.org in order to further expand the financial resources of preschool educational organizations operating on the basis of a public-private partnership and to create additional convenience and work opportunities for parents, the parents' fee to preschool educational organizations operating on the basis of a publicprivate partnership will be paid by the parents on the condition that 100 percent the proposal to allow the admission of children under the age of 3 while independently determining the amount of the mother's allowance is reflected in the resolution of the president of the republic of uzbekistan dated july 14, 2022, "on additional measures for the further development of public-private partnerships in the field of preschool education," no. pq-322. as a result of the implementation of this proposal, during 2022, more than 30 thousand children under 3 years of age will be included in the preschool education system operating on the basis of a public-private partnership, creating conditions for their parents to work, and an additional 72 preschool education organizations operating on the basis of a public-private partnership. 1 billion was used for the formation of soum funds. in terms of reducing or selling the state share in joint stock companies with a state share, it is necessary to involve underwriters on the basis of a contract and determine the price range of shares based on the performance indicators and prospects of the joint stock companies, the real demands of potential investors, and the dynamics of the share price change. engaging experienced underwriters will ensure a successful public offering. the efficiency of joint-stock companies is of great importance in ensuring the social and economic development of the country. because the activities of joint-stock companies, which are considered large industrial enterprises, serve to increase the income of the state budget, increase the level of employment and well-being of the population, ensure a positive balance of payments as a result of the successful implementation of export operations, and reduce the volume of imports due to the implementation of large-scale localization programs,. references 1. decision no. pq-4312 dated may 8, 2019 of the president of the republic of uzbekistan "on approval of the concept of development of the preschool education system of the republic of uzbekistan until 2030". 2. kuznetsova s.v, ilchenko a.n. problemy finansirovaniya doshkolnykh obrazovatelnykh uchrejdeniy (dou) // sovremennye naukoemkie tekhnologii. – 2008. – no. 4. – s. 170-172 3. jumaev n.kh., rakhmanov d.a. financing higher education from private sources: theory and practice//economics and innovative technologies electronic magazine. t.: tdiu, 2018. #5. 4. yoldoshev j.t. actual issues of financing of higher educational institutions//economics and innovative technologies electronic magazine. t.: tdiu, 2018. #5. 5. makhmudov a.a. international practice of financing system management in higher education institutions //economics and innovative technologies electronic journal. t.: tdiu, 2015. #1. 6. sharon wolfand etc. (2018). testing and scaling-up supplyand demand-side interventions to improve kindergarten educational quality in ghana. sief midline report. p. 109. 7. nazarov kh.b. methods of evaluating the effectiveness of financing preschool educational organizations. science and education" scientific journal volume 1 issue 2 8. information of the ministry of preschool and school education of the republic of uzbekistan. american journal of business management, economics and banking volume 24 may 2024 p a g e | 121 www.americanjournal.org 9. qizi r. s. a. et al. analysis of the participation of uzbekistan in the eurobond market and the efficiency of using the funds involved //american journal of social sciences and humanity research. – 2022. – т. 2. – №. 12. – с. 08-12. 10. хошимов, ж. р., б. б. очилов, and с. с. наримонов. "инвестиционная политика: теория и практика." (2024). 11. g’afurov o. et al. analysis of the redistribution of funds from the placement of the first sovereign international bonds of the republic of uzbekistan and their effectiveness //science and innovation. – 2022. – т. 1. – №. 8. – с. 332-339. 12. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). 13. agli g. o. g., niyazbek m. the market of eurobligasies of uzbekistan participation analysis //european international journal of multidisciplinary research and management studies. – 2022. – т. 2. – №. 11. – с. 255-260. 14. norqulova l. s. q. et al. “yashil energetika” energiya tejamkorligini oshirish usuli //central asian research journal for interdisciplinary studies (carjis). – 2022. – т. 2. – №. 11. – с. 71-77. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 119 www.americanjournal.org privatization of state property: romania's experience and its application opportunities in uzbekistan chinkulov kakhramon ravshanovich associate professor, phd. tashkent state economic university g-mail: kakhramonchinkulov@gmail.com. orcid: 0000-0002-0340-6255 a b s t r a c t k e y w o r d s the article analyzes the experience of implementing an effective model of state property privatization in romania — the investment fund "fondul proprietatea." it examines approaches to enterprise transformation, opening them to international investors through the fund, and attracting capital via ipo and spo mechanisms. furthermore, a comparison is made with the activities of the "national investment fund" established in uzbekistan, and scientific-practical recommendations are provided for deepening the privatization process. privatization, market economy, corporate governance, ipo, stateowned enterprises, fondul proprietatea, franklin templeton, controlling stake, portfolio companies, capital market, corporate transparency, kpi, diversification, spo, investor attraction. introduction in the process of transitioning to a market economy, the privatization of state property serves as one of the most important and necessary reforms. privatization involves not only a change in the form of ownership but also addresses a number of strategic tasks, such as strengthening competition in the economy, implementing effective management systems in enterprises, attracting international investment, and ensuring the stability of the state budget. global practice, especially the experience of privatization implemented over the past decades in eastern europe and central asia, is regarded as one of the key factors in economic development. in this context, the privatization policy carried out in romania through the "fondul proprietatea" fund stands out as a significant example of transforming state enterprise assets, integrating them into the international investment environment, and reinforcing the principles of corporate governance. this article analyzes the financial and economic effects of privatization based on romania’s experience, approaches to reforming state-owned enterprises, international management mechanisms, and the potential for their application in uzbekistan. on this basis, scientifically grounded recommendations have been developed to deepen the ongoing economic reforms in the republic and to increase the share of the private sector through the use of modern and effective mechanisms. american journal of business management, economics and banking volume 37 june2025 p a g e | 120 www.americanjournal.org research methodology this scientific article analyzes modern methods of privatizing state property, in particular the institutional approach implemented through the "fondul proprietatea" model applied in the romanian experience. the research employs several methodological approaches, including analytical-methodical analysis, comparative analysis, synthesis of experience and practice, empirically grounded approach, as well as the principles of scientific consistency and systematicity. literature review numerous studies on the privatization of state property have been and continue to be conducted by both foreign and domestic scholars. according to klaus e. meyer, a foreign researcher who studied privatization and corporate governance in eastern europe: “the main goal of privatization is the formation of a market economy and the improvement of efficiency. however, changes in ownership structure directly affect management systems.” [1] anders åslund, a prominent researcher on the transformation processes in central and eastern europe, russia, the caucasus, and central asia, states: “privatization was not merely an economic process, but a fundamental transformation encompassing politics, legislation, ethics, and all spheres of the economy. it became the main dividing line in the transition from a socialist to a capitalist society.” [2] the research findings of economists i. marcelin and i. mazur, who have conducted scientific studies in the fields of financial development, privatization, corporate governance, and economic growth, demonstrate that privatization increases company efficiency and profitability, which in turn positively impacts economic growth [3]. according to russian scholar a.d. radygin and other authors, the privatization of large companies that are fully (100%) state-owned is, in practice, carried out through an initial public offering (ipo) of shares [4]. in the theoretical and empirical studies of scholars such as savas, elliott, and sclar, which are dedicated to privatization, it is noted that “private enterprises are more efficient compared to state-owned ones, as they are more economical in their operations, exhibit higher labor productivity, and face fewer legal restrictions” [5]. according to domestic scholar and practitioner a. kakhkharov, who has conducted research in the field of state property valuation and privatization: “it should be noted that the ratio of private to state ownership in the economy, as well as the benefits and controversial aspects of privatization, have been the subject of numerous studies. the analyses conducted prove that the efficiency of enterprises in private ownership is higher than that of those with state participation.” [6] as rightly emphasized by e. rosenbaum, f. bönker, and h. wagener, privatization should not be viewed as an end in itself in an economic sense. nor should the achievement of political consensus on privatization be seen as a kind of “fetishism.” the main goal of economic transformation is to improve economic welfare through strong competition and effective labor allocation. according to these authors, the creation of a market is the most important issue, and the role of privatization should be assessed in terms of its contribution to the formation of market institutions [7]. according to domestic researcher in the field of securities trading, farkhod mukhamedov: “the securities market has been stagnant for many years, and if the government is truly committed to american journal of business management, economics and banking volume 37 june2025 p a g e | 121 www.americanjournal.org developing this market, it must take decisive action, carry out radical reforms, and widely privatize joint-stock companies with state participation.” [8] according to professor b. kobilov of the university of texas: “if the process of privatizing state-owned enterprises continues effectively, private capital will begin to enter the market, and its liquidity will increase.” [9] in the author's view, “the state is the worst manager.” therefore, accelerating the privatization process and significantly reducing the state's share will contribute to the further development of market relations. analysis and results privatization is one of the most important elements of economic transformation and achieving higher levels of development. it should contribute to increasing budget revenues, improving the living conditions of the population, ensuring the future development of companies by attracting know-how and private capital, and, overall, enhancing the efficiency of resource utilization across all sectors. at the same time, it should be noted that the measures taken by the government have not yet produced significant results. it is still premature to speak of major achievements in this area. nevertheless, the economic well-being of the country largely depends on the successful implementation of privatization. international practice offers successful examples in the field of privatization. in particular, we would like to draw attention to the experience of romania, where conditions were created to promote the privatization process—conditions that in many ways resemble the current situation in uzbekistan. since the early 2000s, romania has experienced a sharp increase in gross domestic product — from usd 37 billion in 2000 to usd 98 billion in 2005, representing a rise in per capita income from approximately usd 1,700 to over usd 4,500. the main contributing factor was the increase in export volumes to european countries [10]. an inflation targeting system was introduced, the privatization of the banking sector began, tax reforms were implemented, and pension and healthcare system reforms were actively discussed. at the same time, a high share of state ownership remained in the country, enterprises were inefficient, serious problems related to corruption persisted, and the domestic capital market remained underdeveloped [11]. in 2005, at the initiative of the government, a special investment fund called fondul proprietatea was established, into which the state transferred its shares in 80 companies. these included strategically important assets such as electricity and gas production and distribution (including nuclear power plants), seaports on the black sea, airports, and other enterprises. it should be noted that in most cases, minority stakes (10–20%) were transferred rather than controlling shares subject to privatization. as a result, control over the enterprises (51% or more) remained with the state. several years were required for approval, evaluation, and other legislative procedures, and only in 2008 did the process of selecting an international manager for the fund begin. in 2009, the winner of the tender — which included participation from over 30 investment firms — was franklin templeton, a company managing assets worth usd 1.4 trillion and ranked among the world’s top 20 asset management firms with a history of over 70 years. the involvement of a major international player with a strong reputation, proven expertise in managing funds and companies, and a broad client base immediately helped position the country on the radar of american journal of business management, economics and banking volume 37 june2025 p a g e | 122 www.americanjournal.org international investors. in addition, the company opened its largest office outside the united states in bucharest, employing dozens of local and international specialists, which facilitated the transfer of knowledge, experience, and know-how to the local market. franklin templeton initiated the regular practice of hosting conferences and meetings with analysts at both the local and international levels, inviting company executives and government representatives for open dialogue with investors. by 2011, the privatization fund fondul proprietatea was listed on the local stock exchange, allowing shareholders to freely trade shares and enabling new investors to purchase them. this gave the general population—who previously had little trust in direct investment in individual state-owned enterprises—the opportunity to participate in the capital of major national companies. moreover, many of the individual companies seemed too small or too risky for foreign institutional portfolio investors. for such investors, the fund provided an opportunity to invest in shares with sufficient scale, quality management, transparency, and liquidity on the stock exchange. in 2015, global depositary receipts (gdrs) of the fund were listed on the london stock exchange, marking one of the largest instances of direct investment inflows into the capital of romanian companies. the funds raised by the fund were directed toward financing investment projects of its portfolio companies. internal competitive procedures and project efficiency were taken into account, with the implementation of clear kpis and management regulations. a key component of the fund’s success has been the high-quality performance of the fund manager, whose contract was extended multiple times. it was precisely the international and independent status of the manager that allowed for effective management of shares not under direct supervision of the companies’ supervisory boards and enabled the manager to hold seats on those boards. this, in turn, led to significant achievements, including countering corruption and protecting the interests of the state and the population as shareholders. in particular, the actions of the fund managers contributed to uncovering and ending corruption schemes in the electricity and gas distribution sectors, increasing the profitability of portfolio companies by 10 to 15 times over 6–7 years, and nearly doubling dividend income, among other accomplishments. these results were achieved through the following measures: implementation of high standards of corporate governance; involvement of independent board members and external advisors with a strong focus on company development; limitation of unjustified interference by state authorities; introduction of incentive-based management programs linked to share price dynamics and company profitability (executives realized that earning official bonuses for strong performance is more beneficial than seeking corrupt income); diversification of funding sources for portfolio companies. companies within the fund that are managed more effectively gain the opportunity to independently access capital markets to attract both debt and equity financing through the issuance of bonds and shares on local and international stock exchanges. in this model, the state's benefits are based on the following factors: • the state retains control over enterprises, and even in strategic sectors, it does not risk losing this control (51% is held directly, and the remaining portion indirectly through the fund’s shareholding); american journal of business management, economics and banking volume 37 june2025 p a g e | 123 www.americanjournal.org • the increase in the share price of portfolio companies enables a regular rise in the value of the state’s remaining stakes, which can later be privatized. in other words, the state, by utilizing the services of an international asset manager, increases the value of its equity holdings and ultimately maximizes fiscal gains for the state budget; • government officials are relieved of the responsibility for enterprise development, as all such tasks are delegated to the international fund manager. the state only needs to ensure the manager’s compliance with contractual obligations, kpis, and national legal requirements. moreover, the manager’s presence protects state-owned enterprises from unjustified interference by officials, as well as from corruption and conflicts of interest. the fund manager exercises strict oversight of its employees and consultants, adhering not only to local legislation but also to international agreements, while maintaining its professional reputation; • once a certain level of performance and governance quality is achieved in line with the kpis, the fund and the state can partially sell existing shares to private investors via a secondary public offering (spo) on domestic or international exchanges. the proceeds from these sales are directed to the state budget; • modernized and efficient companies establish a dividend policy that generates significantly higher income for the budget, enabling the government to allocate funds for financing social infrastructure and services. thanks to the listing of the fondul proprietatea fund and its portfolio companies, the bucharest stock exchange has become one of the fastest-growing exchanges in the eastern european region in recent years. the development of the privatization fund has been one of the driving factors behind this growth. in particular, in september 2019, romania was granted the status of a "secondary emerging market" in the ftse index, replacing its previous classification as a "frontier market." this milestone opened new opportunities for attracting large international investors to the country's market and its securities. the following image presents the advantages of romania’s state property privatization scheme through the fondul proprietatea fund. figure 1. advantages of the state property privatization scheme in romania through the "fondul proprietatea" fund. advantages of the privatization scheme through the "fondul proprietatea" fund retention of state control over enterprises limitation of interference by government authorities attraction of major international investors improvement in management quality and transparency opportunity to participate in the capital of large companies american journal of business management, economics and banking volume 37 june2025 p a g e | 124 www.americanjournal.org if we take a closer look at figure 1, the advantages of implementing this scheme can be summarized as follows: • retention of state control over enterprises even after the transformation process is completed, allowing for continued oversight and governance; • relieving excessive burdens on government bodies and limiting their interference, which can otherwise hinder the achievement of effective privatization outcomes; • providing opportunities for the population, as well as for local and international portfolio investors, to participate in the capital of major national companies considered as “national assets”; • improving the quality of management, transparency, and financial performance of enterprises, while enhancing oversight of spending in state-owned companies; • attracting attention and financing from major international investors into the national economy without state guarantees, and creating alternative sources of funding beyond traditional bank loans. table 1 stages of state property privatization based on the romanian experience1 № stage name key actions expected results 1. fund formation transfer of shares of state-owned companies to the fund; involvement of an international asset management company achieving effective and professional management while retaining state control 2. listing on the domestic exchange registration of the fund on the national stock exchange increased transparency and investor trust in the fund 3. attracting investment via ipo and spo sale of fund shares to local and foreign investors through ipo and spo; allocation of proceeds for development enterprise development, fund activity financing, increased budget revenues 4. listing on international exchange registration of the fund on an international stock exchange involvement of major international investors 5. listing of portfolio companies registration of portfolio companies on domestic and international stock exchanges sale of company shares at high prices, maximizing revenues for the budget and shareholders a detailed explanation of the stages of the privatization process described in table 1 is presented below: 1. fund formation. the state retains control and transfers part of the shares of state-owned companies to the fund. the fund is managed by an international asset management company. 2. listing of the fund on the domestic exchange. the fund is registered on the national stock exchange. 3. attracting investments through ipo. local and foreign investors are given the opportunity to purchase shares of the fund through an ipo. the proceeds from the ipo are used for company development and to finance the fund’s operations. in addition, local and foreign investors may acquire shares through an spo. the funds raised from the spo are directed to the state budget. 4. listing on an international exchange. to attract a large number of international investors, the fund is registered on an international stock exchange. 1 prepared by the author american journal of business management, economics and banking volume 37 june2025 p a g e | 125 www.americanjournal.org 5. listing of portfolio companies. portfolio companies are listed on domestic and international stock exchanges to attract investors and raise financing. as a result, the state and the fund have the opportunity to sell their shares at higher prices, maximizing returns for the state budget and fund shareholders. in accordance with the decree of the president of the republic of uzbekistan dated august 27, 2024, no. pp-303 [12], the joint-stock company "national investment fund of the republic of uzbekistan" was established and officially registered on december 24, 2024. the ministry of economy and finance of the republic of uzbekistan is the sole founder of the fund. the fund's capital was formed through the transfer of shareholdings ranging from 20% to 40% in 18 state-owned enterprises and commercial banks (table 2). table 2 list of enterprises and commercial banks whose shares are transferred to form the charter capital of the jsc "national investment fund of the republic of uzbekistan" [12] № name transferred share (%) 1 jsc "navoiyazot" 25 2 jsc "regional electric networks" 40 3 jsc "thermal power stations" 25 4 jsc "uzbekistan airports" 25 5 joint-stock commercial bank "xalq banki" 30 6 jsc "uzbekhydroenergo" 20 7 jscb "microcreditbank" 40 8 jsc "uzbektelecom" 25 9 jscb "business development bank" 25 10 jsc "uzbekistan airways" 25 11 jsc "railway infrastructure" 25 12 jsc "regional gas supply" 40 13 jsc "toshshahartansservice" 25 14 jsc "uzbekistan post" 25 15 jsc “national electric grid of uzbekistan” 40 16 jsc "republican commodity exchange of uzbekistan" 40 17 jsc "uzbekinvest" 20 18 jsc “uzsuvtaminot” 40 american journal of business management, economics and banking volume 37 june2025 p a g e | 126 www.americanjournal.org this table 2 presents a list of 18 major enterprises and commercial banks whose state shares are being transferred to form the charter capital of the joint-stock company "national investment fund of the republic of uzbekistan", along with the percentage of shares allocated to the fund. from the data in the table, it is evident that the sectors prioritized for transfer into the fund include industry, infrastructure, and energy. in other words, most of the enterprises listed belong to strategic sectors. specifically: 1) in the energy sector: jsc "regional electric networks", jsc “national electric grid of uzbekistan”, jsc "thermal power stations", jsc "uzbekhydroenergo", jsc "regional gas supply", and jsc “uzsuvtaminot”; 2) in the transport and logistics sector: uzbekistan airways, uzbekistan airports, and railway infrastructure; 3) in the telecommunications and postal sectors: uzbektelecom and uzbekistan post; 4) in the chemical sector: navoiyazot. this highlights the significant role of these enterprises in shaping the fund's charter capital. in addition, the financial sector, especially the banking sector, plays an active role in capital formation. notably, 30% of shares in “xalq banki”’s bank, 40% of shares in microcreditbank, and 25% of shares in the business development bank are planned for transfer to the fund. this suggests that the transformation and enhancement of investment attractiveness of these financial institutions are regarded as strategic priorities. the shares range from 20% to 40%, with an average share of 29.7%. this structure indicates a preparation for future privatization while retaining state control. the approach focuses on maintaining active governance without fully relinquishing control. the state has retained majority shareholdings and is in a strong position for potential ipo/spo stages. overall, this table is an important component of the broader strategy for transforming uzbekistan’s largest and most strategic enterprises through the national investment fund, attracting investment, and integrating them into the market. the fund’s charter capital is diversified, sectorally balanced, and includes companies that are attractive to international investors. similarly to romania, at the beginning of 2025, a trust management agreement for investment assets was signed between the national investment fund of uzbekistan and llc franklin templeton asset management. franklin templeton was founded in 1947 in the united states and currently operates in more than 30 countries. according to the agreement, franklin templeton manages an investment portfolio consisting of shares in 18 state-owned enterprises and commercial banks owned by the fund and implements transformation programs aimed at increasing their investment attractiveness. once these programs are completed, the shares of the fund and the enterprises and banks under its management will be listed on local and international stock exchanges. in our view, a separate privatization fund has been established in our country, following romania’s example. just as fondul proprietatea in romania was placed under the trust management of franklin templeton, the joint-stock company “national investment fund of the republic of uzbekistan” has also been entrusted to franklin templeton. in other words, a scenario similar to that of romania is being implemented in our country. the main reason for applying the romanian privatization model is the successful experience of its implementation in romania. american journal of business management, economics and banking volume 37 june2025 p a g e | 127 www.americanjournal.org conclusions and recommendations the experience of romania demonstrates that an innovative model of state asset privatization through a dedicated investment fund — fondul proprietatea — has yielded strong results. this model contributed to strengthening corporate governance in enterprises while maintaining state control, increasing transparency, attracting major international investors, and developing the capital market. uzbekistan is also adopting this approach. the establishment of the joint-stock company “national investment fund of the republic of uzbekistan” in 2024 represents a strategic step in this direction, and the delegation of trust management to franklin templeton marks a qualitatively new phase of privatization in the country. this approach, modeled on the romanian experience, serves as a key foundation for the gradual transition of large state-owned enterprises to open markets, their transformation, and enhancement of investment appeal in uzbekistan. based on the findings of this study, the following scientific and practical recommendations have been developed: 1. implement a pre-transformation assessment system for state-owned enterprises. a standardized kpi system must be developed to evaluate efficiency levels, financial health, governance quality, and market readiness of soes subject to privatization. based on this index, enterprises ready for ipo/spo are selected and prioritized. 2. gradually accelerate the listing of portfolio companies on domestic and international exchanges. as in romania, listing should begin on the local stock exchange, followed by the issuance of gdrs or adrs on international exchanges under a carefully crafted plan. throughout this process, transparency, investor trust, and liquidity must be prioritized. 3. expand mechanisms of trust management through international independent assetmanagers. building on the franklin templeton experience, uzbekistan could also establish partnerships with other major investment firms (e.g., blackrock, vanguard, ashmore group). such management ensures high transparency, anti-corruption oversight, and knowledge exchange. 4. enhance the capacity of local professionals and promote knowledge transfer. mentorship and transfer programs should be organized for local staff working alongside international experts within privatized portfolio companies. this will help improve the quality of local management and institutional resilience. 5. implement a gradual strategy to reduce state ownership. initially, minority stakes (10–25%) can be offered through ipos. depending on management quality and profitability, additional shares may be sold via spos. this approach allows the state to maximize revenues while progressively increasing corporate independence. references: 1. klaus e. meyer. privatisation and corporate governance in eastern europe: the emergence of stakeholder capitalism. // copenhagen business school, 2003, pp. 2–3. https://researchapi.cbs.dk/ws/portalfiles/portal/59009289/7088.pdf 2. anders aslund. how capitalism was built: the transformation of central and eastern europe. // cambridge university press, december 2012, p. 174. https://www.cambridge.org/core/books/how-capitalism-wasbuilt/6de0658e9f2211e8b5a9cf380459d5fb https://research-api.cbs.dk/ws/portalfiles/portal/59009289/7088.pdf https://research-api.cbs.dk/ws/portalfiles/portal/59009289/7088.pdf https://www.cambridge.org/core/books/how-capitalism-was-built/6de0658e9f2211e8b5a9cf380459d5fb https://www.cambridge.org/core/books/how-capitalism-was-built/6de0658e9f2211e8b5a9cf380459d5fb american journal of business management, economics and banking volume 37 june2025 p a g e | 128 www.americanjournal.org 3. marcelin, i., & mathur, i. (2015). privatization, financial development, property rights and growth. journal of banking & finance, 50, 528–546. https://doi.org/10.1016/j.jbankfin.2014.03.030 4. radygin a.d., entov r.m., abramov a.e., chernova m.i., malginov g.n. privatization 30 years later: scale and efficiency of the state sector. — moscow: delo publishing house, ranepa, 2019. — 182 p., p. 49. 5. savas, e.s. privatization and public-private partnerships for local services. mamatov b.sh. conceptual foundations for ensuring investor activity in the privatization of state shares in the economy. // doctoral dissertation abstract (dsc in economics). — tashkent, 2023, p. 14. 6. kakhkharov a.a. issues of valuation of state-owned enterprises in developing countries. phd dissertation in economics. — tashkent, 2022, p. 5. 7. m. khamidulin, a. usmanov, d. musabekov. key factors in the efficiency of state asset privatization. // society and innovation journal (inscience.uz), special issue – 2, no. 01 (2020), p. 88. 8. mukhamedov f.t. directions for the development of trading systems in uzbekistan’s securities market. doctoral dissertation (dsc in economics). — tashkent, 2019, p. 114. 9. b. kabilov. professor at the university of texas (usa). capital market: problems and solutions. // biznes daily birja newspaper, no. 73 (3164), dated 19.09.2024, p.2. www.businessdaily.uz 10. https://data.worldbank.org/indicator/ny.gdp.mktp.cd?locations=ro 11. k. srapionov. romania’s privatization experience: what can be useful for uzbekistan, 2021. https://www.gazeta.uz/ru/2021/04/14/privatization/ 12. decree of the president of the republic of uzbekistan no. pp-303 dated august 27, 2024 "on the establishment of the national investment fund of the republic of uzbekistan". https://lex.uz/docs/-7086023 https://doi.org/10.1016/j.jbankfin.2014.03.030 http://www.businessdaily.uz/ https://data.worldbank.org/indicator/ny.gdp.mktp.cd?locations=ro https://www.gazeta.uz/ru/2021/04/14/privatization/ https://lex.uz/docs/-7086023 american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 100 www.americanjournal.org рrасtiсаl аsресts оf stimulаting thе асtivitiеs оf businеss еntitiеs in fоrеign соuntriеs thrоugh tах mесhаnisms phd. еrgаshеv otаmurоd tаshtеmirоviсh indереndеnt rеsеаrсhеr оf tashkent state university of economics a b s t r a c t k e y w o r d s thе аrtiсlе ехаminеs thе еssеnсе оf tахаtiоn оf businеss еntitiеs, thе imроrtаnсе оf tахеs lеviеd оn businеss еntitiеs in thе fоrmаtiоn оf thе stаtе budgеt. it аlsо аnаlуzеs thе stаtе оf tахаtiоn оf businеss еntitiеs in fоrеign соuntriеs, аnd dеvеlорs rесоmmеndаtiоns fоr thе аррliсаtiоn оf bеst рrасtiсеs in stimulаting thе асtivitiеs оf businеss еntitiеs in fоrеign соuntriеs thrоugh tах mесhаnisms in thе рrасtiсе оf uzbеkistаn. businеss еntitiеs, tах inсеntivеs, tах burdеn, stаtе budgеt rеvеnuеs, stimulаting. introduction in fоrеign соuntriеs, tах inсеntivеs fоr businеss еntitiеs hаvе bееn usеd аs аn еffесtivе mеаsurе tо rеduсе thе shаrе оf thе hiddеn есоnоmу аnd сurb inflаtiоn. аs а rеsult оf this mесhаnism, whiсh stimulаtеs thе асtivitiеs оf businеss еntitiеs, it bесоmеs роssiblе tо асhiеvе finаnсiаl stаbilitу оf thе stаtе budgеt. furthеr rеduсtiоn оf thе tах burdеn, inсluding thе diffеrеntiаtеd соllесtiоn оf рrоfit tах rаtеs fоr lеgаl еntitiеs, is оf grеаt imроrtаnсе fоr thе dеvеlорmеnt оf thе соuntrу. in fоrеign соuntriеs, а numbеr оf wоrks аrе bеing саrriеd оut tо imрlеmеnt rеfоrms аimеd аt stimulаting thе асtivitiеs оf businеss еntitiеs thrоugh tах mесhаnisms intо thе рrасtiсе оf nаtiоnаlism. in раrtiсulаr, it is stiрulаtеd in thе dесrее оf thе рrеsidеnt оf thе rерubliс оf uzbеkistаn nо. 60 “оn thе dеvеlорmеnt strаtеgу оf nеw uzbеkistаn fоr 2022-2026”, аdорtеd оn jаnuаrу 28, 2022, ассоrding tо whiсh “bу 2026, thе tах burdеn оn businеss еntitiеs shоuld bе rеduсеd frоm 27.5 реrсеnt tо 25 реrсеnt оf grоss dоmеstiс рrоduсt” [1]. thе dеереning оf rеfоrms аimеd аt еnsuring thе libеrаlizаtiоn оf thе есоnоmу in thе rерubliс оf uzbеkistаn rеquirеs thе sуstеmаtiс imрrоvеmеnt оf thе budgеt аnd tах sуstеm. budgеt аnd tах роliсу is оnе оf thе imроrtаnt аrеаs оf mеаsurеs imрlеmеntеd in thе finаnсiаl sуstеm tо stimulаtе thе асtivitiеs оf businеss еntitiеs. thе fасt thаt оur соuntrу hаs bееn ехреriеnсing а stаtе budgеt dеfiсit in rесеnt уеаrs сrеаtеs а numbеr оf рrоblеms in соnduсting budgеt аnd tах роliсу in thе рrосеss оf rеgulаting thе есоnоmу аnd еnsuring its stаbilitу. litеrаturе rеviеw thе nееd tо рrоvidе thе соuntrу with finаnсiаl rеsоurсеs fоr thе еffесtivе imрlеmеntаtiоn оf its sосiоесоnоmiс tаsks tо thе рорulаtiоn is оnе оf thе рrеssing issuеs оf thе finаnсiаl sуstеm. thе mаin sоurсе american journal of business management, economics and banking volume 31 december 2024 p a g e | 101 www.americanjournal.org оf this is thе stаtе budgеt rеvеnuеs, аnd thеir fоrmаtiоn invоlvеs finаnсiаl rеlаtiоns bеtwееn vаriоus еntitiеs. in раrtiсulаr, stаtе budgеt rеvеnuеs аrе fоrmеd аt thе ехреnsе оf thе рорulаtiоn's inсоmе, рrореrtу, lаnd, vаluе аddеd, аs wеll аs рrоfits оf businеss еntitiеs, lаnd, рrореrtу, wаtеr rеsоurсеs аnd оthеr tахеs. in this rеgаrd, еffесtivе соnduсt оf stаtе finаnсiаl роliсу, sоundnеss, stаbilitу оf stаtе budgеt rеvеnuеs, еnsuring аn орtimаl bаlаnсе оf sоurсеs оf thеir fоrmаtiоn аrе оf grеаt imроrtаnсе аt thе сurrеnt stаgе оf rеfоrms in thе budgеt аnd tах sуstеm bеing imрlеmеntеd in thе rерubliс оf uzbеkistаn. thе grеаt сlаssiсаl есоnоmist аdаm smith studiеd tахеs оnlу аs а sоurсе оf budgеt rеvеnuеs. in his орiniоn, tахеs shоuld bе еnоugh tо соvеr thе соsts оf mаintаining thе gоvеrnmеnt. thеrеfоrе, а. smith fосusеd аll his аttеntiоn оn thе fisсаl funсtiоn оf tахеs. in аdditiоn, а. smith рrороsеd tо imроsе tахеs оn соnsumеr gооds, whiсh wоuld аffесt thе grоwth оf рriсеs оf gооds аnd thе vаriаbilitу оf dеmаnd fоr gооds [2]. аnоthеr сlаssiсаl есоnоmist, d. riсаrdо, рut fоrwаrd idеаs thаt соmрlеmеntеd а. smith's thеоrу оf tахеs. unlikе оthеr есоnоmists, d. riсаrdо сrеаtеd а nеw рrinсiрlе оf tахаtiоn. ассоrding tо this рrinсiрlе, аll tахеs, unlеss thеу аrе imроsеd оn thе bаsis оf inсrеаsing рrоduсtiоn оr rеduсing nоnрrоduсtivе соnsumрtiоn, hindеr thе ассumulаtiоn оf сарitаl [3]. m. shаrifkhоdjаеv аnd а. оlmаsоv triеd tо dеsсribе tахеs аs а mеаns оf distributing nаtiоnаl inсоmе: “tахеs аrе а fоrm оf tаking а раrt оf nаtiоnаl inсоmе intо thе stаtе’s hаnds in thе рrосеss оf its distributiоn аnd rеdistributiоn” [4]. ассоrding tо есоnоmist о. оlimjоnоv, “tахеs аrе рауmеnts thаt аrе соllесtеd frоm thе рорulаtiоn аnd businеss еntitiеs аt thе stаtе’s disсrеtiоn in thе аmоunt аnd within thе еstаblishеd реriоd еstаblishеd bу lаw in оrdеr tо mееt thе nееds оf thе stаtе аnd sосiеtу fоr mоnеtаrу funds” [5]. in оur орiniоn, this dеfinitiоn оf tахеs mоrе brоаdlу rеvеаls thеir еssеnсе. studуing thе ехреriеnсе оf diffеrеnt соuntriеs рrоvidеs аn орроrtunitу tо dеvеlор dirесtiоns fоr imрrоving tах роliсу in tеrms оf рrоviding tах inсеntivеs. in соnnесtiоn with thе аbоvе, it sееms rеlеvаnt tо studу fоrеign ехреriеnсе in sоlving issuеs rеlаtеd tо thе рrоblеms оf рrоviding tах inсеntivеs [6]. rеsеаrсh mеthоdоlоgу this аrtiсlе usеs rеsеаrсh mеthоds suсh аs induсtiоn аnd dеduсtiоn, sуstеmаtiс аnd соmраrаtivе аnаlуsis, есоnоmiс аnd stаtistiсаl mеthоds tо imрlеmеnt sсiеntifiс соnсlusiоns аnd рrороsаls оn suрроrting thе асtivitiеs оf businеss еntitiеs in fоrеign соuntriеs thrоugh tах inсеntivеs in оur соuntrу's рrасtiсе. аnаlуsis аnd rеsults thе tоtаlitу оf tахеs, fееs, dutiеs аnd оthеr mаndаtоrу рауmеnts соllесtеd frоm lеgаl еntitiеs аnd individuаls, аs wеll аs thе рrinсiрlеs, mеthоds оf thеir struсturе, аnd tах соntrоl, соnstitutеs thе tах sуstеm. this dеfinitiоn is а brоаd undеrstаnding оf thе tах sуstеm. in tах lеgislаtiоn, thе tах sуstеm is intеrрrеtеd in а nаrrоw sеnsе, аnd thе tоtаlitу оf tахеs, fееs, dutiеs аnd оthеr mаndаtоrу рауmеnts thаt hаvе thе sаmе еssеnсе аnd fоrm а сеntrаlizеd mоnеtаrу fund is саllеd thе tах sуstеm. it is wоrth nоting thаt suсh аn аррrоасh tо thе tах sуstеm is аlsо рrеsеntеd in sоmе litеrаturе. thе аbоvе dеfinitiоn indiсаtеs thаt tахеs аnd fееs hаvе а singlе еssеnсе, thаt is, а “rеlаtiоnshiр оf а mаndаtоrу nаturе” аnd thеir intеrrеlаtiоnshiр аnd, ultimаtеlу, thеir fаll intо thе budgеt. american journal of business management, economics and banking volume 31 december 2024 p a g e | 102 www.americanjournal.org in gеnеrаl, thе tах sуstеm саn bе dividеd intо thе рrinсiрlеs оf tахаtiоn, tах роliсу, tахаtiоn sуstеm, tах mесhаnism, еtс. thеsе еlеmеnts dirесtlу dеtеrminе thе соmроsitiоn оf tахеs in fоrсе in thе соuntrу. сurrеntlу, thе bulk оf stаtе budgеt rеvеnuеs in thе rерubliс оf uzbеkistаn аrе fоrmеd using 9 tуреs оf tахеs. thе rеlеvаnсе оf thе аnаlуsis оf fоrеign ехреriеnсе in thе аррliсаtiоn оf tах inсеntivеs аs оnе оf thе еffесtivе instrumеnts оf tах роliсу is duе tо thе imроrtаnt rоlе thаt tах inсеntivеs рlау in thе sуstеm оf stаtе finаnсiаl suрроrt fоr есоnоmiс аgеnts. thе dеvеlорmеnt оf thе nаtiоnаl tах sуstеm shоuld bе bаsеd, аmоng оthеr things, оn thе studу оf fоrеign ехреriеnсе [7]. аll tах inсеntivеs саn bе соnditiоnаllу dividеd intо twо lаrgе grоuрs: sосiаl bеnеfits; inсеntivе bеnеfits. thеsе grоuрs diffеr frоm еасh оthеr bу thе mаin сritеriоn есоnоmiс еffесt. sосiаl bеnеfits dо nоt imрlу аnу аdditiоnаl bеnеfit, but аrе рrоvidеd tо mаintаin sосiаl bаlаnсе. sосiаl tах bеnеfits саn bе dividеd intо: bеnеfits fоr individuаls; bеnеfits fоr lеgаl еntitiеs ореrаting in thе sосiаl sрhеrе fоr ехаmрlе, in gеrmаnу, сеrtаin саtеgоriеs оf сitizеns (blind hirеd wоrkеrs, disаblеd реорlе) аrе рrоvidеd with аdditiоnаl tах bеnеfits thаt hаvе а fiхеd аmоunt оr аrе limitеd tо а сеrtаin uрреr limit. this соuntrу аlsо рrоvidеs tах bеnеfits fоr сhildrеn, аgе bеnеfits, аs wеll аs bеnеfits fоr еmеrgеnсу сirсumstаnсеs suсh аs illnеss, ассidеnt [8]. in gеrmаnу, tах bеnеfits (rаtе rеduсtiоn) аrе рrоvidеd fоr рrореrtу in аgriсulturе аnd fоrеstrу. in sраin, sосiаl tах bеnеfits fоr vаriоus реrsоnаl аnd fаmilу сirсumstаnсеs аrе рrоvidеd mаinlу in thе fоrm оf dеduсtiоns frоm tахаblе inсоmе. suсh bеnеfits аrе аvаilаblе оnlу tо rеsidеnt tахрауеrs. in mаnу fоrеign соuntriеs, inсluding thе usа, bеnеfits аrе рrоvidеd tо еntеrрrisеs thаt еmрlоу disаblеd реорlе. sосiаl bеnеfits аrе аlsо usеd (fоr ехаmрlе, fоr соntributiоns tо сhаritаblе fоundаtiоns). inсеntivе (mоtivаtiоnаl) bеnеfits аrе intrоduсеd tо сrеаtе fаvоrаblе соnditiоns fоr thе dеvеlорmеnt оf individuаl industriеs оr tуреs оf асtivitу аnd аrе usuаllу mаnifеstеd in аll thrее tуреs оf еffесts (sосiаl, budgеtаrу аnd есоnоmiс), but thе еmрhаsis is рlасеd оn thе budgеtаrу аnd есоnоmiс еffесt, thе sосiаl еffесt is rеlаtеd, but nоt thе mаin оnе. fоr ехаmрlе, in thе usа, а lаrgе numbеr оf tах bеnеfits оn рrоfit tах fоr еntеrрrisеs аrе рrоvidеd. first оf аll, bеnеfits аrе еstаblishеd fоr соmраniеs invеsting thеir finаnсiаl rеsоurсеs in а сеrtаin tеrritоrу. signifiсаnt tах disсоunts аrе рrоvidеd fоr соmраniеs whоsе асtivitiеs аrе vаluаblе within thе frаmеwоrk оf thе stаtе tах роliсу. in аdditiоn, tах bеnеfits аrе рrоvidеd tо stimulаtе еntеrрrisеs tо usе аltеrnаtivе еnеrgу sоurсеs [9]. ассоrdinglу, thе соrроrаtе inсоmе tах in thе unitеd stаtеs is nоt sо muсh а fisсаl lеvеr оf tах роliсу аs аn instrumеnt оf influеnсе оf thе stаtе gоvеrnmеnt оn thе есоnоmiс situаtiоn оf а givеn tеrritоrу, thе dеvеlорmеnt оf thе mоst рrоfitаblе dirесtiоns оf рrоduсtiоn оf gооds аnd sеrviсеs fоr thе stаtе. thе tах роliсу in fоrсе in swеdеn саn bе rесоgnizеd аs оnе оf thе mоst imроrtаnt instrumеnts аimеd аt inсrеаsing thе соuntrу's еnеrgу еffiсiеnсу. dеsрitе thе fасt thаt high tах rаtеs аrе sеt, thеу vаrу dереnding оn thе еnеrgу соnsumеr. in frаnсе, tах brеаks аrе trаditiоnаllу usеd fоr еvеrуthing rеlаtеd tо сulturе. аlmоst аll fоrеign соuntriеs hаvе еstаblishеd tах brеаks in thе fiеld оf ехроrt асtivitiеs, fоr thе сrеаtiоn оf nеw jоbs, inсrеаsing invеstmеnt асtivitу in сеrtаin industriеs, fоr еntеrрrisеs thаt аrе fоrmеd аnd ореrаtе in rеlаtivеlу lеss dеvеlореd rеgiоns, еtс. mаnу соuntriеs usе thе fоllоwing tуреs оf tах brеаks соmрlеtе american journal of business management, economics and banking volume 31 december 2024 p a g e | 103 www.americanjournal.org ехеmрtiоn frоm tахеs оr dеfеrmеnt оf thеir рауmеnt. fоr ехаmрlе, in itаlу, nеwlу сrеаtеd еntеrрrisеs in сеrtаin lеss dеvеlореd rеgiоns аrе subjесt tо ехеmрtiоn frоm inсоmе tах fоr а сеrtаin реriоd. in bеlgium, smаll vеnturе соmраniеs аrе ехеmрtеd frоm рауing tахеs fоr 10 уеаrs in оrdеr tо stimulаtе thеir асtivitiеs. in аdditiоn, а siх-уеаr tах ехеmрtiоn is рrоvidеd fоr еntеrрrisеs thаt dеmоnstrаtе аn inсrеаsе in lаbоr рrоduсtivitу simultаnеоuslу with аn inсrеаsе in еmрlоуmеnt аnd аn imрrоvеmеnt in thе usе оf рrоduсtiоn сарасitiеs. in dеvеlореd соuntriеs, thе рriоritу рrinсiрlе fоr intrоduсing tах inсеntivеs is thеir tаrgеtеd nаturе. thаt is, tах роliсу in tеrms оf рrоviding tах inсеntivеs is initiаllу fоrmеd bаsеd оn sресifiс stаtе gоаls thаt must bе асhiеvеd, fоr ехаmрlе, bу stimulаting сеrtаin mаnufасturеrs. it is еsресiаllу nесеssаrу tо fосus оn thе fасt thаt tоdау оnе оf thе mоst imроrtаnt аrеаs оf tах роliсу in mаnу соuntriеs is tах rеgulаtiоn оf thе stаtе оf thе еnvirоnmеnt, bаsеd оn асhiеving thе gоаl оf imрrоving thе еnvirоnmеntаl situаtiоn. in dеvеlореd соuntriеs, сlоsе аttеntiоn is раid tо thе еnvirоnmеntаl аnd sосiаl аsресts оf tах роliсу duе tо thе fасt thаt оnlу асhiеving а сеrtаin lеvеl оf есоnоmiс dеvеlорmеnt аnd stаbilitу еnаblеs thе stаtе tо strеngthеn thе сеntrаlizаtiоn оf finаnсiаl rеsоurсеs tо sоlvе sосiаl аnd оthеr рrоblеms оf nаtiоnаl imроrtаnсе. thе рrасtiсе оf еstаblishing tах inсеntivеs fоr еnvirоnmеntаl tахеs саn bе illustrаtеd bу thе ехаmрlе оf suсh dеvеlореd соuntriеs аs swеdеn, gеrmаnу, grеаt britаin, аnd thе usа. in thеsе соuntriеs, inсеntivеs аrе еstаblishеd thаt аllоw thе fullеst роssiblе tаkе intо ассоunt thе аmоunt оf dаmаgе frоm еnvirоnmеntаl роllutiоn. thus, in gеrmаnу, inсеntivеs аrе рrоvidеd fоr еntеrрrisеs thаt usе соgеnеrаtiоn units. thе inсеntivеs fоr thеsе соmраniеs аrе рrоvidеd bу sеtting rеduсеd rаtеs, аs wеll аs а соmрlеtе ехеmрtiоn frоm еnеrgу tах undеr сеrtаin соnditiоns. in swеdеn, аn еnvirоnmеntаl tах is lеviеd оnlу оn lаrgе рrоduсеrs оf еlесtriсitу аnd hеаt. in thе uk, а рrеfеrеntiаl tаriff is аррliеd tо соmраniеs thаt mееt сеrtаin соnditiоns, аs wеll аs inсrеаsеd rаtеs fоr сеrtаin еmissiоns. rеduсеd rаtеs fоr еlесtriсitу оbtаinеd frоm rеnеwаblе sоurсеs аrе аррliеd in gеrmаnу. fоrеign соuntriеs hаvе аlsо еstаblishеd inсеntivеs thаt аrе intеndеd tо stimulаtе а rеduсtiоn in thе nеgаtivе imрасt оn thе еnvirоnmеnt. fоr ехаmрlе, thе rаtеs fоr thе hуdrосаrbоn tах, whiсh is аррliеd in еu соuntriеs, аrе diffеrеntiаtеd. thе mоtоr vеhiсlе tах оftеn dереnds оn thе еnvirоnmеntаl сlаss оf thе vеhiсlе, thе реriоd оf its usе оr thе tуре аnd сlаss оf fuеl usеd. fоr ехаmрlе, in thе usа, оwnеrs оf саrs with аn еlесtriс еnginе аrе ехеmрt frоm рауing thе tах. in gеrmаnу, inсеntivеs аrе usеd tо рurсhаsе а light-wеight раssеngеr саr with аn еlесtriс еnginе. in swеdеn, bеnеfits аrе рrоvidеd tо thоsе whо usе mоrе еnvirоnmеntаllу friеndlу сhеmiсаls tо rеduсе thе usе оf hаrmful fеrtilizеrs. аirlinеs with а mоrе еnvirоnmеntаllу friеndlу flееt аlsо еnjоу а рrеfеrеntiаl аir trаffiс tах rаtе. аnd in оrdеr tо rеduсе thе lеаkаgе оf hаrmful substаnсеs frоm bаttеriеs, а fее is еstаblishеd fоr thе usе оf bаttеriеs with а сеrtаin соntеnt. bу using tах inсеntivеs in dеvеlореd соuntriеs, роliсу is аimеd nоt оnlу аt rеduсing thе vоlumе оf nеgаtivе imрасt оn thе еnvirоnmеnt, but аlsо аt rеduсing dереndеnсе оn nаturаl rеsоurсеs. in dеvеlореd соuntriеs, рrеfеrеnсеs аrе аlsо еstаblishеd thаt аrе dеsignеd tо tаkе intо ассоunt thе intеrеsts оf diffеrеnt grоuрs оf tахрауеrs.usuаllу, thеу аrе аimеd аt mаintаining thе соmреtitivеnеss оf lоw-рrоfit есоnоmiс sесtоrs (fоr ехаmрlе, аgriсulturе) [10]. american journal of business management, economics and banking volume 31 december 2024 p a g e | 104 www.americanjournal.org рiсturе 1. fоrms оf tах inсеntivеs fоr businеss еntitiеs in fоrеign соuntriеs аs а mеаsurе оf tах роliсу in uzbеkistаn in this аrеа, whiсh will асt аs а fасtоr in соmреnsаting fоr dаmаgе tо hеаlth, thе еstаblishmеnt оf а rеgiоnаl еnvirоnmеntаl dеduсtiоn fоr inсоmе tах fоr individuаls аnd lеgаl еntitiеs саn bе usеd, thе аmоunt оf whiсh shоuld dереnd оn thе dеgrее оf роllutiоn оf thе tеrritоrу. suсh usе оf tах rеvеnuеs tо соmреnsаtе hоusеhоlds аnd еntеrрrisеs is аlsо рrороsеd in fоrеign litеrаturе, it is nоtеd thаt соmреnsаtiоn саn tаkе thе fоrm оf а rеduсtiоn in inсоmе tах оr tах сrеdits аimеd аt sресifiс grоuрs. inсеntivеs fоr businеss еntitiеs in fоrеign соuntriеs thrоugh tах inсеntivеs саn bе ехрrеssеd in thе fоllоwing fоrms (рiсturе 1). tаblе 1 dуnаmiсs оf сhаngеs in stаtе budgеt rеvеnuеs оf thе rерubliс оf uzbеkistаn in 20212023 (billiоn sоums) [11] tахеs аrе аllосаtеd fоr thе рurроsе оf рrоviding thе stаtе budgеt with rеvеnuеs, аssеssing thе еffесtivеnеss оf stаtе funсtiоns аnd tаsks, аs wеll аs fоr thе sсiеntifiс аnd thеоrеtiсаl studу аnd аnаlуsis оf stimulаting thе асtivitiеs оf businеss еntitiеs. frоm thе dаtа in tаblе 1, wе саn sее thаt thе rеvеnuеs оf thе stаtе budgеt оf thе rерubliс оf uzbеkistаn inсrеаsеd bу 22.6% in 2022 соmраrеd tо 2021 аnd full ехеmрtiоn frоm tахеs; grаnting inсеntivеs tо nеwlу еstаblishеd еntеrрrisеs; tеmроrаrу ехеmрtiоn frоm рауing tахеs; rеduсing thе tахаblе bаsе; раrtiаl ехеmрtiоn frоm tахеs; grаnting inсеntivеs fоr fоrеign invеstmеnts; grаnting inсеntivеs fоr ехроrts, еtс. indiсаtоrs yеаrs 2021 2022 2023 inсоmе (ехсluding еаrmаrkеd funds) tоtаl 164,7 201,9 231,7 1. dirесt tахеs 58,9 64,4 73,1 1.1 соrроrаtе рrоfit tах 38,4 37,6 40,8 1.2 turnоvеr tах 1,6 2,5 2,4 1.3 реrsоnаl inсоmе tах 18,9 24,3 29,9 2. indirесt tахеs 56,3 71,4 83,3 2.1 vаluе аddеd tах 38,4 52,2 57,9 2.2 ехсisе tах 13,1 13,5 15,8 2.3 сustоms dutу 4,8 5,7 9,6 3. rеsоurсе fееs аnd рrореrtу tах 23,0 23,9 28,1 3.1 рrореrtу tах 2,5 4 5,1 3.2 lаnd tах 4,1 5,3 6,9 3.3 subsоil usе tах 15,8 13,9 15,3 3.4 wаtеr usе tах 0,7 0,7 0,8 4. оthеr inсоmе 26,4 42,2 47,2 american journal of business management, economics and banking volume 31 december 2024 p a g e | 105 www.americanjournal.org bу 14.7% in 2023 соmраrеd tо 2022, slоwing dоwn bу 7.9% соmраrеd tо thе рrеviоus уеаr. whilе thе bulk оf thе stаtе budgеt rеvеnuеs wеrе fоrmеd аt thе ехреnsе оf dirесt tахеs in 2021-2022, bу 2023 thе vоlumе оf indirесt tахеs аmоuntеd tо 35.9% оf tоtаl rеvеnuеs. in 2023, thе vоlumе оf dirесt tахеs inсrеаsеd bу 24.1% соmраrеd tо 2021. thе vоlumе оf indirесt tахеs hаs inсrеаsеd signifiсаntlу соmраrеd tо dirесt tахеs, rеасhing 83.3 bln. sоums frоm 56.3 bln. sоums. thе intrоduсtiоn оf tах inсеntivеs intо thе асtivitiеs оf businеss еntitiеs сrеаtеs соnditiоns fоr еliminаting thе imbаlаnсе thаt hаs аrisеn in thе рrосеss оf rерrоduсtiоn. in оthеr wоrds, thе rаtеs fоr сеrtаin tахеs саn bе dividеd intо sеvеrаl grоuрs (tуреs) in tеrms оf thе tах subjесt, tах оbjесt, tах соllесtiоn mеаns, аnd dеаdlinеs fоr thе рrоduсtiоn аnd sеrviсе sесtоrs. in thе rерubliс оf uzbеkistаn, sресiаl аttеntiоn is раid tо inсrеаsing stаtе budgеt rеvеnuеs bу stimulаting businеss еntitiеs thrоugh tахеs. thе imрlеmеntаtiоn оf thеsе mеаsurеs will mаkе а роsitivе соntributiоn tо stimulаting thе асtivitiеs оf еntrерrеnеurs. thе рrеsеnсе оf а numbеr оf inсеntivеs in thе tах sуstеm оf оur rерubliс аimеd аt еnсоurаging ехроrt асtivitiеs is а kеу fасtоr еnсоurаging nаtiоnаl рrоduсеrs tо ехроrt thеir рrоduсts. соnсlusiоn аnd suggеstiоns оnе оf thе mаin аnd intеgrаl раrts оf thе glоbаl tах sуstеm is tах inсеntivеs. оnе оf thе mаin tооls fоr аnу stаtе, rеgаrdlеss оf its есоnоmiс sуstеm, tо рrоvidе thе stаtе budgеt with rеvеnuеs is tахеs аnd nоntах рауmеnts. hоwеvеr, thе intrоduсеd tахеs саnnоt bе еstаblishеd in а рurеlу fisсаl fоrm. bесаusе thе imрlеmеntаtiоn оf tахеs еstаblishеd sоlеlу frоm thе роint оf viеw оf budgеtаrу intеrеsts dоеs nоt lаst lоng. thеrеfоrе, а сеrtаin lеvеl оf usе оf tах inсеntivеs is rеquirеd. hаving аnаlуzеd аll оf thе аbоvе, wе саn соnсludе thаt еасh соuntrу, tаking intо ассоunt its сulturаl сhаrасtеristiсs, nаturаl rеsоurсеs, sсiеntifiс аnd tесhniсаl еquiрmеnt, must сhооsе its оwn раth tо а mоdеrn sustаinаblе tах sуstеm. tоdау, thе russiаn аuthоritiеs аrе lооking fоr аdditiоnаl sоurсеs оf budgеt rерlеnishmеnt. in оrdеr tо аvоid аn inсrеаsе in thе tах burdеn, оffiсiаls аrе bеginning tо fосus оn аltеrnаtivе аsресts оf fisсаl роliсу, fоr ехаmрlе, imрrоving tах аdministrаtiоn. imрrоving tах аdministrаtiоn mеаns nоt sо muсh imрrоving thе wоrk оf tах sеrviсеs аs rеduсing tах bеnеfits. bаsеd оn thе аssеssmеnt оf thе lеgislаtiоn оn tахеs аnd fееs оf thе rерubliс оf uzbеkistаn аt thе сurrеnt mоmеnt, it саn bе соnсludеd thаt thе sуstеm оf tах bеnеfits mееts thе rеquirеmеnts оnlу раrtiаllу: thе рurроsе оf еstаblishing tах рrivilеgеs is оftеn nоt suрроrtеd bу thе соnditiоns аnd rеstriсtiоns sеt оut in thе рrоvisiоns оf thе lеgislаtiоn оn tахеs аnd fееs; thе аssеssmеnt оf thе еffесtivеnеss оf tах bеnеfits is рrеsеnt ерisоdiсаllу. in оrdеr tо еffесtivеlу соnduсt tах rеfоrms in а mаrkеt есоnоmу, mеаsurеs аrе tаkеn tо influеnсе tахеs, аррlу inсеntivеs tо thеm, аnd еnsurе thе unifоrm dеvеlорmеnt оf vаriоus sесtоrs оf thе есоnоmу. bу аррlуing tах inсеntivеs, thе stаtе hаs а diffеrеnt imрасt оn diffеrеnt sесtоrs оf thе есоnоmу, thаt is, thе рrоblеm оf еnsuring а bаlаnсе bеtwееn sоmе рrоfitаblе аnd unрrоfitаblе sесtоrs аrisеs. this, in turn, givеs thе right tо соnсludе thаt thе tаrgеt соmроnеnt оf а раrtiсulаr tах bеnеfit is mаndаtоrу. thе stаtе must hаvе guаrаntееs thаt thе bеnеfits rесеivеd bу tахрауеrs will bе usеd fоr sресifiс рurроsеs, аnd this is роssiblе оnlу if thе lаw еstаblishеs а sуstеm оf guаrаntееs fоr thе usе bу thе tахрауеr оf аdditiоnаllу rесеivеd finаnсiаl rеsоurсеs fоr thе рurроsеs fоr whiсh this tах рrеfеrеnсе is аimеd. bаsеd оn аll оf thе аbоvе, it саn bе соnсludеd thаt, bаsеd оn thе invеntоrу оf tах bеnеfits аnd рrеfеrеnсеs рrоvidеd bу tах lеgislаtiоn, it is nесеssаrу tо sуstеmаtizе thеm in оrdеr tо imрrоvе thеir еffесtivеnеss. american journal of business management, economics and banking volume 31 december 2024 p a g e | 106 www.americanjournal.org references 1. о‘zbеkistоn rеsрublikаsining рrеzidеntining “2022 — 2026 уillаrgа mо‘ljаllаngаn yаngi о‘zbеkistоnning tаrаqqiуоt strаtеgiуаsi tо‘g‘risidа”gi 60-sоnli fаrmоni. 2022 уil 28 уаnvаr. 2. smit а. isslеdоvаniуа о рrirоdе i рriсhinах bоgаtstvа nаrоdоv. – m.: sоsеkgiz. 1962. – s 408. 3. rikаrdо d. nасhаlа роlitiсhеskоу еkоnоmiki i роdаtnоgо оblоjеniуа. –m.: 1908, m. –l.: 1929; m., 1935. – s. 193. 4. о‘lmаsоv а., shаrifхо‘jаеv m., iqtisоdiуоt nаzаriуаsi. –t.: mеhnаt, 1995. – 377 b. 5. оlimjоnоv о. bоzоr iqtisоdiуоtigа о‘tish dаvridа sоliq siуоsаti. // hауоt vа qоnun. –tоshkеnt, 1992. №2. – b. 8-12. 6. жердева а.и., немирова а.с. налоговые льготы: практика применения в россии и за рубежом // экономика и менеджмент инновационных технологий. 2015. № 12. 7. копина а. а. международное налоговое право: учебник и практикум для бакалавриата и магистратуры //м.: юрайт, 2016. с. 243. 8. гварлиани т.е., боташева з.с., воробей е.н.//налоговые льготы: методология, практика применения, эффективность: коллективная монография. сочи: риц фгбоу впо «сгу», 2014. 9. митрофанова и. а., плешаков г. г. актуальность применения зарубежного опыта налогообложения предприятий в российских условиях // молодой ученый. 2013. №9. с. 217-220. 10. киреенко, а.п. использование налоговых льгот в регулировании состояния окружающей среды: зарубежный опыт и перспективы россии / а. п. киреенко, о. в. батурина, с. а. головань // известия иркутской государственной экономической академии (байкальский государственный университет экономики и права). 2014. № 1. с. 25-34. 11. оffiсiаl wеbsitе оf thе ministrу оf есоnоmу аnd finаnсе. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 58 www.americanjournal.org a study on personality type and tourism expectations of local people: the case of uzbekistan-kokand prof. dr. nurettin ayaz karabuk university safranbolu faculty of tourism tourism management e-mail: nurettinayaz@karabuk.edu.tr orcid: 0000-0003-2117-2015 eldorbek karimov karabuk university the institute of graduate programs tourism management e-mail: eldorbek0987654321@gmail.com orcid: 0009-0000-0746-2986 a b s t r a c t k e y w o r d s one of the most important aspects in the development of tourism in a region is to learn the expectations of the local people, who are the stakeholders of the sector. because tourism has economic, social and environmental effects on the local people and when these effects are not managed properly, negative effects may arise due to improperly managed tourism plan. for this reason, it is an important that the views of the local people should be taken into account for the development of tourism in a region. in this study, which was designed with this thought in mind, the tourism expectations of the local people of kokand, which is believed to have potential opportunities for tourism growth in uzbekistan, are approached in terms of personality types and it is aimed to support tourism development. in the scope of the study, a questionnaire was applied to 422 participants within the scope of easy sample management, in the period of january-april 2023. as a result of the analysis of the survey data, it has been determined that the expectations of the local people is associated with the sub-dimensions of quality of life, natural environment-regional development, tourism infrastructure and tax income. local people; tourism expectation; personality traits; kokand. introduction for many countries or regions, developing tourism means economically improving the quality of life of the local population. because tourism is an important economic source in terms of tax revenues, employment and additional income generation. at the same time, from a social perspective, it improves american journal of business management, economics and banking volume 33 february 2025 p a g e | 59 www.americanjournal.org the quality of life of the local population through infrastructure investments (mihailović & moric, 2012). however, tourism development also brings some disadvantages to host communities. one of the most important points in tourism development in a region is to learn the expectations of local people, who are the stakeholders of this sector. this is because tourism has economic, social and environmental impacts on local people and when these impacts are not managed properly, negative impacts may arise due to tourism. for this reason, it is important to consider the opinions of local people for tourism development in a region. valuing research to determine the perspectives of local people in tourism development is critical for the long-term success of the tourism industry (sarıahmetoğlu & toylan, 2020). personality, which is an important research area in psychology, is used to predict the future behaviour of individuals and for psychological evaluations. however, there are very few studies using personality tests in tourism, which is closely related to the discipline of psychology. however, most of the limited personality research has focused on predicting tourist behaviour but has often failed to predict it accurately. however, personality research in tourism is important for marketing, product positioning, tourism master planning at national, state or local level, and destination development (jackson et al., 2001). tourism has become the fastest growing sector in the world in recent years with the increasing number of tourists and expenditures. local governments and businesses in each country are trying to make more profit from the tourism sector. in addition, with the development of tourism in a region, the infrastructure of social services such as roads, airports, transport systems, communication, water, sewerage, electricity and similar infrastructure services are also developed and local people also benefit from these advantages. however, in some regions, local communities are also exposed to some complex effects due to tourism development (milman and pizam, 1998). local people who are negatively affected by tourism may be hostile towards tourists, and as a result of this behaviour, the attractiveness of the region for tourists decreases, and at the same time, the potential earnings of the local tourism industry may decrease (türker, 2022). in this context, if tourism development in a region will affect the culture, environment and social life of the local people, it is essential to learn about the expectations of local communities and tourism practitioners in order to motivate them to adapt to and explore new possibilities across cultural boundaries (skinner & theodossopoulos, 2010). in this study, the tourism expectations of the local people of kokand city, which is considered to have potential opportunities in the tourism of uzbekistan, are approached in terms of personality types and it is aimed to support the tourism development of the city. this study, which focuses on the expectations of local people towards tourism according to their personality types, can be considered as a different approach to tourism development and sustainability in host communities that are just getting acquainted with tourism. this study, which focuses on determining the personality types and tourism expectations of the local people of kokand and finding out whether there is a relationship between the personality types of the local people and their expectations from tourism, can be seen as a guide to tourism decision-makers and support for the development of tourism in uzbekistan by learning the tourism expectations of the local people in kokand. at the same time, it is thought to contribute to the tourism literature in terms of testing the relationship between tourism expectations and personality type. american journal of business management, economics and banking volume 33 february 2025 p a g e | 60 www.americanjournal.org review of literature all stakeholders should be taken into account and value should be created for them when planning and operational activities for tourism. the participation of stakeholders in the decision-making process ensures the development and sustainability of tourism (https://tourismteacher.com; https://www.igiglobal.com). stakeholders that can directly or indirectly affect tourism planning and development include governments, local authorities, tourism businesses, tourists, tourism workers and local communities (goeldner and ritchie, 2005). local people are the most important stakeholders that will be affected by the success or failure of the tourism sector and should be included in the planning, development and management of tourism (ay & ekiz, 2018). determining the attitude of local people towards the development of existing tourism is of great importance in preventing possible negative effects, increasing positive effects and sustainability of tourism (güneş et al., 2020). many governments are keen to encourage the rapid development of tourism, but often fall significantly short of expectations or forecasts of its positive impacts (coheni, 1984). it is unlikely that tourism can be sustainable in an environment where tourism resources are damaged and local community support cannot be secured. for this reason, for tourism development in a region, the natural, historical, cultural resources, basic ecological processes and biodiversity of the host region should not be damaged and local community support should be provided (demir & çevirgen, 2006; ayaz et al., 2009; türker, 2022). local people living in a destination are one of the most important stakeholders in ensuring, protecting and implementing sustainability in the destination (bramwell and sharman, 2002). it is vital to adhere to the attitudes of local people to ensure successful sustainable tourism (brunt & courtney, 1999). otherwise, it becomes impossible to achieve sustainability when the views and perceptions of local people are not taken into account (mathieson and wall, 1989). for sustainable tourism, which is defined as a tourism planning system that is friendly to the long-term well-being of communities, visitors and the tourism industry (oecd, 1994), learning the expectations of stakeholders is an important requirement. because the most important issue in tourism-induced change is the irreversibility of the spatial and temporal effects of tourism (pigram, 1992). therefore, ensuring the satisfaction of both local people and visitors is a very important issue for sustainable policies and planning (genç et al., 2014). according to kreag (2001), leaders should understand the potential impacts of tourism and integrate tourism in the most positive way for their communities. because, tourism develops in the region when visitors interact with the community and are satisfied. as tourism develops, local people have more opportunities and wider choices. tourism activities make the local area more interesting and exciting and the community can benefit more from them. it is often difficult to identify and measure the social impacts of tourism on a community. this is because the attitudes and perceptions of the local population towards tourism can change continuously and frequently between positive and negative. local people's value system, personal behaviours, family relations, general common life style, traditional ceremonies and community organisations can direct this change (milman and pizam, 1998). in this context, it is very important to understand the tourism expectations of local people in advance and to exhibit behaviours in line with these expectations.expectations in tourism are mostly based on tourist expectations. expectation is defined as ideal or desired performance. it is also seen as the preliminary estimates made while receiving service. for successful destination marketing, the importance of understanding tourists' expectations, american journal of business management, economics and banking volume 33 february 2025 p a g e | 61 www.americanjournal.org which are effective in their destination choices, consumption habits and revisit decisions, is emphasised and it is highlighted that understanding their expectations can be important clues in developing destination attractiveness and improving touristic goods and services (aksu et al., 2010). however, recently, it has been emphasised to consider the expectations of the host community as well as tourists (ayaz & parlak, 2019; türker, 2022). personality is an individual and dynamic phenomenon and is a distinctive, consistent, typical, fundamental and unchanging characteristic that guides long-term, future-oriented behaviours. it is stated that personality affects the individual's learning ability, perception, family, social environment and society (tuna & türkmen, 2013). the importance of knowing the personality traits of the individual is pointed out for the right choices, accurate decisions, appropriate relationships and harmony with the environment in which the individual lives, and it is thought that the individual can make appropriate behaviours in the face of events and phenomena (durna, 2005). recently, personality has also found its place in tourism research. kwon and park (2015) examined the relationship between personality traits and tourist behaviours in tourism and used the myers-briggs personality test to explain tourist behaviours. in the study conducted to determine the relationship between people's personality types, tourism destinations and preferred tourist behaviours, significant differences were found in the relationships between personality traits and tourist behaviours in the extraversionintroversion and judgement-perception index. e type tourists prefer tourism destinations for activities and shopping. on the contrary, id types prefer resting rather than having fun in tourism destinations. j types preferred package tour and p types preferred free travel. secondly, the relationships between personality traits and tourist behaviours did not show significant differences in the sn (perceivingsensing) and tf (thinking-feeling) index. thirdly, the results showed statistically significant differences among the four personality types (ij, ip, ep, ej) in terms of tourist motivation and tourist behaviour such as travel motivation, main travel activity, etc. at the end of the study, it was determined that people behave differently according to their personality types in deciding to travel and travelling. moghavvemi et al. (2017) examined how residents' personality, emotional solidarity and community commitment influence tourism perceptions explaining support for tourism development, recognising that local residents' personality and perspectives about the community and visitors can play an important role in building overall support for tourism development. survey data was collected from 340 residents of two tourism destinations in malaysia. he found that sympathetic understanding and hospitable nature were the strongest factors influencing residents' attitudes towards tourism development, and the effect was different between men and women with different characteristics. the effect of emotional closeness on residents' attitudes towards tourism development was different between residents with high agreeableness and extraverted personalities, while openness to experience, conscientiousness and neuroticism did not have a significant effect on these relationships. ayaz and parlak (2019) collected data from 400 participants within the scope of the research they conducted to reveal the perceptions of local people living in ardahan province of turkey towards tourism according to personality type. it was revealed that individuals with extroverted personality among the personality types of local people are more willing to support tourism.wee-kheng tan (2020) examined how tourists' personality traits affect perceived travel constraints in the destination selection process. specifically, he investigated how tourists' personalities in the preliminary evaluation of a tourist destination affect their perceived leisure travel constraints and their search for relevant information under different temporal distance conditions. as a result of the research, constraints related american journal of business management, economics and banking volume 33 february 2025 p a g e | 62 www.americanjournal.org to safety concerns, lack of interest, time and cost of travelling were identified. these constraints were experienced more strongly for a high temporal distance. the influence of personality on perceived constraints was more pronounced for a high temporal distance. the study has practical implications for destination marketing organisations in that it can increase their understanding of tourists' behaviour at the pre-trip planning stage and help prevent the "premature" elimination of their destinations. ayaz and musellim (2021) addressed the complex process of tourist behaviour in terms of price and personality type. they collected data from 403 participants in antalya destination. visitor personality types were determined as altruistic, extroverted, utilising and extroverted, and it was revealed that personality type positively affected price perception. uzbekistan is one of the countries implementing measures to develop the tourism industry, increase the competitiveness of the industry and actively promote the national tourism product on the world market, and since 2016 the process of fundamental reform in the tourism sector has begun (www. review.uz). in 2016, more than 2 million foreign tourists visited the country, while in 2019 this number increased 3.3 times to 6.7 million, and in 2018, the number of foreign tourists increased by 98% compared to 2017, and the number of enterprises and organisations engaged in tourism activities increased by 131% (boltaeva, 2022). musaev (2023), in his study, associates the problems in uzbekistan's tourism with the competitiveness of national tourism products, high prices for accommodation and flights, limited quality of service, lack of engineering, transport and social infrastructure, lack of appropriate tourist information (navigation and information centres), lack of qualified personnel and weakness of promoting uzbekistan abroad. xudoyarov (2020) points out that tourism as an aspect of the economy in uzbekistan can be stabilised by domestic tourism development. according to ibragimov (2022), taking into account the welfare of the population in uzbekistan and the need to take measures to protect the environment, within the framework of the growth rate of tourism and its positive impact on the growth of other sectors of the economy, the tourism sector is in stable growth and is one of the most powerful tools of the country's development. the city of kokand was declared the "tourism capital of the turkic world" at the 6th meeting of ministers responsible for tourism of the turkic council held in kokand, uzbekistan on 24 june 2021 and is one of the most important places in the development of tourism in the fergana region (www.turizmpress.com). in this sense, tourism research on kokand city can be seen as important outputs. it is very important for tourism planning to learn the perspectives of local people towards tourism in a tourism development region. the perceptions and opinions of local people about the effects of tourism may prevent the development and shaping of tourism in the region in some cases (ayaz et al., 2009). methodology of the study this study is a scientific research aimed at determining the effect of personality types of local people living in kokand city on tourism expectations. quantitative research method was utilised as a method in the research. primary data were obtained by using the research scale prepared on the basis of the secondary data of the research. the personality scale included in the questionnaire used for the research was prepared by adapting it from parlak (2018). the scale for revealing the expectations of local people towards tourism was created based on the opinions of academicians within the framework of the scale statements in the studies conducted by ayaz et al. (2009) and cornell et al. (2019). american journal of business management, economics and banking volume 33 february 2025 p a g e | 63 www.americanjournal.org the questionnaire form consisted of three sections: personal information, tourism expectation scale and personality scale. in the personal information section, the demographic characteristics of the participants, including gender, marital status, age, education level, monthly income and status, and other characteristics, including length of living in kokand and kokand tourism attraction factors, were included. in the second part of the questionnaire, a 5-point likert-type interval scale was used to find out the respondents' tourism expectations. in the third part of the questionnaire, a 5-point likert-type interval scale was used to reveal the personality type of the participants as in the second part. in the interval likert type scale, 1: strongly disagree, 2: disagree, 3: partially agree, 4: agree and 5: strongly agree, scale ranges were taken as basis. the questionnaire form for the participants was applied to the local people living in kokand city between june-september 2022 within the scope of face-to-face survey technique and convenience sampling method. the problem of this research, in which the relationship between personality type and tourism expectation of local people is analysed, is accepted as "determining the relationship between personality type and tourism expectation". within the framework of the research problem, the model (figure 1) and hypotheses are proposed as shown below: h1: there is a significant relationship between personality type and tourism expectation. h1a: there is a significant relationship between dominant personality type and tourism expectancy. h1b: there is a significant relationship between extrovert personality type and tourism expectancy. h1c: there is a significant relationship between utilisable personality type and tourism expectancy. figure 1. research model the population for this research is considered to be the local population living in kokand, uzbekistan. according to the 2015 census results, 236,838 people live in kokand city (https://www.google.com). sampling was applied around the factors of accessibility, time and cost. the developed by sekeran (2003) was used for the sample size and the sample size was determined as 384 with a z value of 1.96 in the +-5% confidence interval. the study was conducted on 498 participants. the research is limited h1a h1 personality type tourism expectation dominant personality utilisable personality extrovert personality h1b h1c american journal of business management, economics and banking volume 33 february 2025 p a g e | 64 www.americanjournal.org to the research scales on tourism expectations and personality type of local people and the opinions of local people living in kokand city in june-september 2022. the area of study kokand is one of the oldest cities in central asia and part of the dawan province of china. the history of the city dates back to the 10th century, according to relevant inscriptions, and the city as a trade centre was called ‘hovakend’ or ‘kokand’. however, excavations in the mui-mubarak area have discovered ancient kurgan and tepakurgan monuments, ancient buildings and pottery built 2000 years ago. kokand reached the peak of its development in the 18th century and became the capital of the kokand khanate. by becoming the capital, kokand entered a stage of development and became a religious centre with more than 300 mosques. kokand is known as a centre of handicrafts and a large number of ahi craftsmen live on its territory. kokand is one of the oldest cities in central asia and part of the dawan province of china. the history of the city dates back to the 10th century, according to relevant inscriptions, and the city as a trade centre was called ‘hovakend’ or ‘kokand’. however, excavations in the mui-mubarak area have discovered ancient kurgan and tepakurgan monuments, ancient buildings and pottery built 2000 years ago. kokand reached the peak of its development in the 18th century and became the capital of the kokand khanate. by becoming the capital, kokand entered a stage of development and became a religious centre with more than 300 mosques. kokand is known as a centre of handicrafts and a large number of ahi craftsmen live on its territory. kokand has various riches in terms of tourism attractions and finds its place in tour programmes. figure 2. uzbekistan tour routes (karımov, 2023:50). results descriptive information on the demographic characteristics (gender, marital status, age, education, ) and other characteristics (duration of living in kokand) of 498 participants in this study, which was american journal of business management, economics and banking volume 33 february 2025 p a g e | 65 www.americanjournal.org carried out to create a perspective on the personality type and tourism expectations of local people, were determined as shown in table 1. table 1. descriptive characteristics of the participants variables groups f % gender female 243 48,8 male 255 51,2 marital status single 303 60,8 married 195 39,2 age 18-25 214 43,0 26-33 111 22,3 34-41 47 9,4 42 and over 126 25,3 education high school 56 11,2 licence 277 55,6 postgraduate 165 33,1 status labourer 120 24,1 tradesmen 48 9,6 student 254 51,0 other 76 15,3 duration of living in kokand less than 1 year 44 8,8 1-5 years 42 8,4 6-10 years 17 3,4 11 years and over 395 79,3 in the descriptive characteristics of kokand local people, it can be said that men (51.2%), singles (60.8%), 26-33 age group (22.3%), bachelor's degree graduates (55.6%), students (51.0%), and those who have lived in kokand for 11 years or more (79.3%) stand out. in order to determine the personality types of the local people living in kokand city and to test the hypotheses foreseen for the research, reliability explanatory factor analysis was conducted. table 2. personality type scale factor analysis results factor �̅� 𝑠. 𝑠. factor load variance explanation (%) dominant personality 2,93 1,05 33,10 i want to be noticed a lot. 3,08 1,30 0,960 i am very sceptical towards people. 2,98 1,01 0,898 i am aggressive towards people. 3,17 1,34 0,869 i try to control people too much. 2,77 1,25 0,756 it is difficult for me to join groups. 2,66 1,22 0,738 extrovert personality 3,86 0,69 24,80 i try too hard to change people. 3,77 1,02 0,926 i don't argue too much with people. 3,15 1,04 0,770 i want people to know what i want. 4,07 ,775 0,752 i have an independent structure that can make my own decisions. 4,48 0,58 0,680 personality prone to be used 3,46 0,70 16,51 i try very hard to please people. 3,99 0,62 0,874 i open my feelings to people too much. 3,53 0,95 0,838 i trust people too much. 2,87 1,02 0,714 total variance explanation ratio 74,41 american journal of business management, economics and banking volume 33 february 2025 p a g e | 66 www.americanjournal.org k-m-o sample measurement adequacy:0,511 bartlett's significance test (chi-square / df / sig): 7172,074/ 66 / 0,000 in determining the personality type of kokand local people, the reliability coefficient (α) value for the personality scale was calculated as 0.767. the participants were categorised into three personality types: dominant personality (33.10%), extrovert personality (24.80%) and personality prone to be used (16.51%) with a total variance explanation rate of 74.41%. within the scope of revealing the tourism expectations of the local people living in kokand city and testing the hypotheses envisaged in the research model, it was deemed appropriate to conduct reliability and explanatory factor analysis as in the personality type scale. table 3. factor analysis results of tourism expectation scale factor �̅� 𝑠. 𝑠. factor load variance explanation (%) environmental protection-city planning 4,29 0,66 55,94 the quality of the natural environment should improve due to the development of tourism. 4,34 0,80 0,854 tourism should improve the environment for future generations. 4,29 0,62 0,845 improvements in roads and other public services. 4,26 0,87 0,843 better quality buildings and town planning. 4,29 0,65 0,823 tourism development should strengthen environmental protection efforts. 4,31 0,72 0,816 infrastructure-entertainment-shopping 4,09 0,54 15,92 tourism should improve infrastructure (roads, sewerage, water, electricity, etc.) in the region 4,10 0,71 0,840 tourism should increase recreation (entertainment) activities 4,10 0,62 0,834 tourism should provide shopping opportunities 4,09 0,62 0,740 investment-service quality 4,27 0,64 7,53 tourism development should lead to high levels of investment, development and infrastructure expenditure. 4,27 0,69 0,852 tourism development should improve the quality of local services. 4,28 0,66 0,828 total variance explanation ratio 79,39 k-m-o sample measurement adequacy:0,816 bartlett's significance test (chi-square / df / sig): 4221,276/ 45 / 0,000 the reliability coefficient (α) value for the expectation scale for determining the tourism expectations of kokand local people was calculated as 0.781. for the tourism expectation scale, three subdimensions of environmental protection-city planning (55.94%), infrastructure-entertainmentshopping opportunities (15.9%) and investment-service quality (7.53%) were reached with a total variance explanation percentage of 73.39. correlation analysis was carried out within the scope of revealing whether there is a relationship between the personality types of kokand local people and their tourism expectations and testing the hypotheses envisaged in the research and the results of table 4 were obtained. american journal of business management, economics and banking volume 33 february 2025 p a g e | 67 www.americanjournal.org the ‘r’ value between the personality types of the local people of kokand and their tourism expectations is 0.392 and there is a moderate positive relationship (0.30<r<0.69). with this result, the h1 hypothesis proposed in the research is accepted. the ‘r’ value between the dominant personality type of the local people of kokand and their tourism expectations is -0,025 and the ‘p’ significance value is 0,576. therefore, no significant relationship was found. with this result, the hypothesis h1a proposed in the research is not accepted.the ‘r’ value between the extrovert personality type of kokand locals and their tourism expectations is 0.712 and there is a highly positive relationship (0.70<r<1.00). with this result, the hypothesis h1b proposed in the research is accepted. the ‘r’ value between the utilisable personality type of the local people of kokand and their tourism expectations is 0.285 and there is a low level positive relationship (0.00<r<0.29). with this result, the hypothesis h1c proposed in the research is accepted. table 4. correlation analysis for personality type and tourism expectations tourism expectations dominant personality r -0,025 p 0,576 n 498 extraverted personality r 0,712 p 0,000* n 498 personality prone to exploitation r 0,285 p 0,000* n 498 personality type r 0,392 p 0,000* n 498 *p<0,001 discussion for tourism, which is at the centre of human relations and hospitality, different personalities can elicit different responses to the same tasks (leung & law, 2010). therefore, personality is very important as it can influence people's shopping preferences, decision-making processes, self-control, interaction with others, emotions and even how they cope with stress (carver & scheier, 2008). from a human resources perspective, understanding employees' personalities can help managers to manage employees more effectively (huang, 2006; lazanski, 2004). in addition, determining the personality traits of managers has a potential impact on employees working in tourism enterprises (türkmen & tuna, 2013). individuals are quite different creatures in terms of attitude and behaviour, especially in terms of physical characteristics. it is possible to see this situation concretely in the reactions, ideas and emotions shown to social events. understanding the personality of individuals and examining it scientifically is an important issue for tourism, which is at the centre of human relations. personality research is very important in terms of people's shopping preferences, decision-making processes, interaction with others, self-control and ability to combat stress (leung & law, 2010; ayaz & american journal of business management, economics and banking volume 33 february 2025 p a g e | 68 www.americanjournal.org müsellim, 2021). in addition, it is known that individuals with extroverted personality tend to support tourism development in a region more (ayaz & parlak, 2019). the results of this research show that local residents with extroverted personality adopt tourism more and have higher tourism expectations. in this context, applying a personality test in the selection of local people who can play a role in the planning and tourism development studies to be carried out for the city of kokand and starting studies with extroverted individuals in the first place can be presented as a suggestion for other community members to recognise and adopt tourism more and to achieve positive outcomes. conclusion tourism is one of the world's largest and fastest growing sectors, contributing 10 per cent of global gross domestic product (gdp), 7 per cent of global exports and accounting for one in 10 jobs worldwide. its capacity to attract significant investment, create jobs, increase exports and adopt new and emerging technologies makes it an important pillar for economic growth and development, particularly for least developed and developing countries (https://www.unep.org). successful tourism planning for tourism development in a region should involve more than the utilisation of resources and its basic principle should be the development of tourism that will satisfy both tourists and residents (ogorelc and milfelner, 2017). because the support of the whole community is key when planning sustainable tourism development (andereck et al., 2009). therefore, learning the tourism perceptions and expectations of the residents in the tourism development region can be seen as important outputs. because success in tourism depends on the promotion of tourism products in harmony with the local environment and its people (murphy, 2013). uzbekistan is a country spread over an area of 447,000 km². the cities of samarkand, bukhara, khiva and shakhrisabz are unesco world heritage sites and are all located on the route of the ancient silk road. in this context, uzbeksitan has a prestigious tourism image. the images and photographs of uzbekistan in the travel supplements of leading western newspapers and magazines, as well as in the advertisements of some global tv channels (cnn, al jazhira, euronews, etc.) are the most concrete indicators of this (gonzález et al., 2016). in this context, tourism research for uzbekistan can be seen as important outputs. in this research, which was carried out on the basis of the personality types and tourism expectations of the local people of kokand city, which is one of the potential regions in the tourism development of uzbekistan and has recently started to be frequently included in uzbekistan tour itineraries, three subdimensions were found in the personality types of the local people as "dominant" and "extrovert" and "prone to be used". the sub-dimension of dominant personality type is associated with "wanting to be noticed too much, being sceptical, having an aggressive structure, controlling people too much and having difficulty in joining groups"; the sub-dimension of extroverted personality type is associated with "trying to change people, not arguing with people too much, knowing what people want and having an independent structure that can make my own decisions"; and the sub-dimension of exploitative personality type is associated with "making a lot of effort to please people, opening up their feelings to people, trusting people more than necessary". three sub-dimensions, namely "environmental protection-city planning", "infrastructureentertainment-shopping opportunities" and "investment-service quality" were identified in the tourism expectations of the local people living in kokanda. expectations for the sub-dimension of american journal of business management, economics and banking volume 33 february 2025 p a g e | 69 www.americanjournal.org environmental protection-city planning are "increase in the quality of the natural environment, improvement of the environment, improvement in roads and other public services, better quality buildings and urban planning and environmental protection"; expectations for the sub-dimension of infrastructure-entertainment-shopping opportunities are "development of infrastructure (roads, sewerage, water, electricity, etc.) in the region, increase in entertainment opportunities, tourism provides shopping opportunities"; and expectations for the sub-dimension of investment-service quality are "increase in high level investments and increase in the quality of local services". -in the comparison of the tourism expectations of the local people with the descriptive characteristics, it was determined that there were differences in the variables of marital status, age, education level, status, duration of life in kokand and kokand attraction elements. in the comparison of tourism expectations of kokand local people according to marital status, it was seen that single people have higher tourism expectations than married people. in the comparison of tourism expectations according to age status, it was determined that the tourism expectations of young individuals were higher. in the comparison of tourism expectations of kokand local people according to educational status, the significant difference is between high school, undergraduate and postgraduate and the tourism expectation decreases as the educational level increases. in the comparison of tourism expectations according to the status status, it is seen that there is a significant difference between labourer and tradesmen, student and other . among these groups, the group with the lowest tourism expectation was labourers, while the group with the highest tourism expectation was tradesmen. according to the duration of living in kokand, the highest expectation for tourism was found among those who have been living in kokand for 1-5 years. in the comparison of tourism expectations according to the attraction elements of kokand; it was determined that the tourism expectations of the local people who consider the city's history, cultural heritage and hudayar khan palace important were higher. it has been determined that there is a medium level relationship between the personality type and tourism expectations of the local people of -kokand , a high level relationship between the extrovert personality type and tourism expectations, and a low level relationship between the utilising personality type and tourism expectations, and the hypotheses h1, h1b and h1c, which are foreseen to be tested in this research, are accepted. no significant relationship was found between dominant personality type and tourism expectations. within the framework of the results obtained within the scope of the research, scientific recommendations to the tourism planners and decision makers of the city regarding the personality type and expectations of kokand local people can be listed as follows: -the expectations of local people can be measured at different times in order to support tourism development and develop projects in kokand. the measurement results can be shared with tourism planners and decision makers. -in the promotional tools to be prepared for the promotion of the city of kokand, the support of the local people can be ensured by using visual or textual themes that can overlap with the environmental expectations of the local people. in addition, meetings and seminars can be organised for tourism development in the city. -a personality test can be applied to the candidates before forming working groups for kokand tourism. at the end of the personality test, starting to work with candidates with extrovert personality type and then ensuring the participation of other personality types in the work can help healthy tourism development. american journal of business management, economics and banking volume 33 february 2025 p a g e | 70 www.americanjournal.org in this study, the relationship between the personality type of kokand local people and tourism expectation was tested based on leonard horowitz and lynn alden's personality theory. in similar studies to be conducted at different times in the future, new predictions can be developed with different personality theories. in this study, the scales for the personality type and tourism expectation 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(2020). ozbekiston turizm industriyasida ziyorat turizmining rivojlanish istiqbollari. https://zenodo.org/record/7882511 [erişim tarihi: 10.07.2023]. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 138 www.americanjournal.org digital currency and central bank digital currencies (cbdcs): explore the rise of digital currencies, including cryptocurrencies like bitcoin and stable coins, and the potential implications of central bank digital currencies (cbdcs) on monetary policy, financial stability, and cross-border transactions jo’rayev og’abek, student of the mt-93 group at tashkent state university of economics ogabekjorayev081@gmail.com a b s t r a c t k e y w o r d s the advent of digital currencies has been a transformative phenomenon in the world of finance, marking a significant shift from traditional fiat currencies to innovative, technology-driven alternatives. among these, cryptocurrencies, led by bitcoin, and stable coins have garnered considerable attention, while central banks have begun exploring the concept of central bank digital currencies (cbdcs). this article delves into the rise of digital currencies, examining the evolution of cryptocurrencies, the emergence of stable coins, and the potential of cbdcs, highlighting both the benefits and challenges associated with these novel forms of exchange. cryptocurrency, market position, stability, monetary policy, affects, market prices introduction in a world where electronic payments are increasingly popular for transactional purposes, standard attributes of state central bank money, such as central bank account penetration or even physical cash circulation, are under pressure. now, the emergence of challenger digital currencies on both npls and wplcods has made the challenges even more difficult and urgent. as a consequence, even though the possibility of being crowded out via the scod is regarded as theoretically possible but statistically unlikely in the short run, if the use of physical, including cash, ccs does have some undesired social effects, central banks will face difficult trade-offs. the social cost behind maintaining physical ccs and introducing wcods is essentially the price for the independence of central banks' account and ledger rights. nevertheless, the challenge is to design and implement the additional wcod(s) in a way that takes the banking system's legal exposure into consideration, possibly by developing the new american journal of business management, economics and banking volume 24 may 2024 p a g e | 139 www.americanjournal.org wcod on top of, rather than replacing or excluding the current one on the ledger of the account-based system. an expanding body of literature offers insights on the emergence and design of digital currencies, from various perspectives such as monetary economics, computer science, law, political science, and the private sector. so far, however, most studies have focused mainly on either cryptocurrency in the private sector, like bitcoin, or central bank digital currencies (cbdcs) in public institutions, while disregarding the connections between the two. more often than not, they are viewed as mutually exclusive, dual systems serving as different rotation centers of the holder-defined currency spectrum, which anchors the issuance of the state central bank money. however, in our view, the barrier between the two is permeable. central banks may turn to cryptocurrency technologies or even establish partnerships with bitcoin entrepreneurs to develop and implement their own digital versions of the banknotes, coins, and reserves because, as has been observed by bofinger, some property-based central bank money functions that are currently only fulfilled by cryptocurrencies and remain absent in the account-based commercial bank money can instead be taken over by cbdcs. definition and types of digital currencies digital currency is a new form of currency that can be found on the internet or on mobile telephone gadget, using a digital wallet to pay for goods and services and, with particular ease, purchases or transactions. the majority of digital currencies are founded on blockchain technology that started with bitcoin, a cryptocurrency. nonetheless, the operation regimes of digital currencies are diverse, and it is essential to evaluate the various operational requirements, in particular, the accountability and danger management of the participants in the digital currency system. at present, with the endorsement of major central banks, the idea of central bank digital currencies, or cbdc, namely, cbdc adopted by the central banks, an advanced phase of the present legal currency, has received emphasis. in this era, digital currencies can be categorized into the following types: 1) cryptocurrency: crypto cash is a new form of "non-bank" private currency that concerns traditional financial institutions. the general idea of bitcoin is the equalization of peer-to-peer networking. it is activated solely by decentralized entities, and its limitation stops the double option problem of itself. democratic flaw control (based on the "pow" proof of work) has permitted the removal of the central supervision system. 2) digital value asset: the digital value asset (dva), for "non-mined" assets, breaks the property rights associated with them; for goods, the third-party authentication principle is applied. in fact, such digital assets represent a particular "store of value and are worth 881.8 us dollars in terms of market value by 2021. 3) central bank digital currency (cbdc) 2: cbdc refers to a digital legal-tier liability of the central bank freely accessible to consumers, companies and government agencies. the use of cbdc places both the central bank and the domestic financial system in a new world. due to the related distinctions in specific operational conditions, this study will no longer explore central bank digital currencies, only considering that the central bank digital currency can refer to either the balance of the central bank or the currency distributions of the central bank, and the topic has received more attention in the technical literature. digital currencies are a new concept of currency that corresponds to the digital era. digital currencies are based on cryptographic protocols and are often independent of entities that establish or guarantee their value, thus making them revolutionary instruments. the new features of digital currencies such as smart contracts, automated transactions, privacy, decentralized autonomous organizations, american journal of business management, economics and banking volume 24 may 2024 p a g e | 140 www.americanjournal.org consensus mechanisms, etc. are inherited from the cryptographic technologies used. in this paper, the principal consultancy of 3 digital currencies is surveyed compared with current legal and private money. the most important cryptocurrency is bitcoin, designed as a response to the most important problems related to the current money, i.e., those associated with non-privacy and lack of control over it by the central financial authority. although it seems that bitcoin has achieved these goals, it also has problems in terms of scalability and unsustainability and is used to finance criminal activities as, for instance, scandals related to the self-styled "dark web" showed. furthermore, the market of digital coins is every day increasing, and the technology seems to be very promising in terms of applications, automatically funded companies and so on. historical evolution and adoption the year 2009 is the most influential year for cryptocurrency as it marks the launch of bitcoin. in 2008, satoshi nakamoto, a pseudonymous person or group of people, released a paper titled "bitcoin: a peer-to-peer electronic cash system" that described an electronic cash system without the need for a central authority. bitcoin is now being used to carry out secure, peer-to-peer transactions within the bitcoin network, also commonly referred to as the bitcoin blockchain. in the same year, the first block of the blockchain—called the genesis block—is created by nakamoto on january 3, 2009. prior to bitcoin, currency systems implemented with cryptographic techniques have been introduced with companies like flooz and e-gold (2005), both of which were canceled in the years following the 911 attacks due to the impossibility of preventing fraud and the abuse of the system for illegal purposes. in the following years, many other digital currencies were introduced, but bitcoin is still the most famous and widely used. the concept of cryptocurrencies first emerged in the early 1980s. digicash was the first electronic money company, which was founded by david chaum in 1989. digicash offered a service where transactions were completely anonymous and untraceable, a feature that has spawned a vast number of illegal activities such as money laundering. in 2001, the nsa published a paper called "how to make a mint: the cryptography of anonymous electronic cash". the paper suggested that the united states government could implement its own cryptocurrency because there were benefits to either cash or card transactions. the publication from the nsa certainly gave the cryptocurrency debate for cashless payments a certain boost. the inception of bitcoin in 2009 marked the beginning of the cryptocurrency era. satoshi nakamoto's pioneering work introduced the concept of a decentralized, trustless, and secure medium of exchange, unshackled from the constraints of traditional financial systems. the underlying blockchain technology, which enables the creation of an immutable, distributed ledger, has been instrumental in fostering confidence in this new asset class. the remarkable success of bitcoin has inspired the creation of numerous alternative cryptocurrencies, or altcoins, which, collectively, have spawned a lucrative market. one of the primary drivers of the cryptocurrency phenomenon is the allure of decentralized finance (defi). by bypassing traditional intermediaries, such as banks, individuals can engage in peer-topeer transactions, unhindered by geographical or institutional barriers. this democratization of finance has sparked a global interest, particularly among the younger demographic, who are drawn to the prospect of financial autonomy and the potential for substantial returns on investment. moreover, the cryptographic security and transparency inherent in blockchain technology have american journal of business management, economics and banking volume 24 may 2024 p a g e | 141 www.americanjournal.org instilled confidence in this fledgling asset class, as evidenced by the meteoric rise of cryptocurrency prices in recent years. in parallel to the growth of cryptocurrencies, the emergence of stable coins has addressed a significant concern regarding the volatility endemic to this market. stable coins, such as usdt (tether) and usdc (usd coin), are pegged to the value of fiat currencies, mitigating the risks associated with cryptocurrency fluctuations. this innovation has broadened the appeal of digital currencies, attracting investors seeking refuge from market turbulence. the development of stable coins has also facilitated the integration of cryptocurrencies into mainstream commerce, as merchants and consumers gain confidence in their use as a reliable medium of exchange. in response to the rapid growth of digital currencies, central banks have initiated exploratory initiatives to develop their own digital currencies, cbdcs. the people's bank of china, the european central bank, and the bank of england, among others, have undertaken research and pilot projects to create digital currencies that can coexist with traditional fiat currencies. cbdcs aim to harness the benefits of digital currencies, such as increased efficiency, reduced costs, and enhanced financial inclusion, while addressing concerns related to monetary policy, financial stability, and consumer protection. the potential benefits of cbdcs are multifaceted. they could enable faster, more secure, and cheaper transactions, particularly in the context of cross-border payments. additionally, cbdcs could reinforce financial inclusion, as individuals without access to traditional banking services could utilize digital wallets to conduct transactions. furthermore, cbdcs could provide central banks with a novel tool for monetary policy implementation, allowing for more precise control over the money supply and interest rates. however, the rise of digital currencies, including cryptocurrencies and cbdcs, also presents various challenges. regulatory frameworks are still in their infancy, and the lack of standardization and oversight raises concerns regarding anti-money laundering (aml) and combating the financing of terrorism (cft) compliance. furthermore, the environmental impact of cryptocurrency mining, which is energy-intensive, has sparked debates about sustainability. the potential for cyber-attacks and data breaches also requires concerted efforts to ensure the security of digital currency systems. conclusion in conclusion, the rise of digital currencies has transformed the financial landscape, offering novel opportunities for innovation, financial inclusion, and efficiency. cryptocurrencies, led by bitcoin, and stable coins have paved the way for a decentralized, technology-driven revolution in finance. meanwhile, central banks are actively exploring the potential of cbdcs, which could augment the existing financial infrastructure. as this nascent industry continues to evolve, it is crucial to address the challenges and risks associated with digital currencies, ensuring that the benefits of this financial revolution are accessible to all. american journal of business management, economics and banking volume 24 may 2024 p a g e | 142 www.americanjournal.org references: 1. "focus group on digital currency including digital fiat currency". itu. retrieved 3 december 2017. 2. mersch, yves (16 january 2017). digital base money: an assessment from the ecb's perspective (speech). farewell ceremony for pentti hakkarainen, deputy governor of suomen pankki – finlands bank. helsinki: european central bank. retrieved 19 june 2021. 3. davoodalhosseini, m., rivadeneyra, f., & zhu, y. (2020). cbdc and monetary policy (no. 2020-4). bank of canada. 4. "concept note on central bank digital currency". reserve bank of india. 7 october 2022. 5. lavayssière, xavier (1 september 2022), central bank digital currencies: the quest for public digital payment infrastructures, école polytechnique, doi:10.2139/ssrn.4649480, ssrn 4649480 6. european central bank (18 october 2023). "a stocktake on the digital euro summary report on the investigation phase and outlook on the next phase" (pdf). 7. "money and payments: the u.s. dollar in the age of digital transformation" (pdf). board of governors of the federal reserve system. january 2022. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 4 www.americanjournal.org the theoretical foundations of the formation of financial mechanisms for attracting foreign investment shokirov khotambek anvarovich independent researcher at tsue email: xotambek.shakirov@gmail.com a b s t r a c t k e y w o r d s the article reveals the financial mechanisms for effectively attracting foreign investment into the economy: methods, forms, management tools and financial instruments for effectively attracting foreign investment. as a result of the research, the author’s conclusion on the financial mechanism for attracting foreign investment is formed, conclusions and recommendations are given. foreign investments, bonds, credit, deposit, tax policy, monetary policy, stock market, portfolio investments. introduction investment activity determines the basis for the successful development of the world economy, and also helps to determine the prospects for modernization and diversification of the economies of various countries of the world. the importance of foreign investment contributes to the international distribution of capital, as well as to the search for more profitable ways of making a profit from entrepreneurial activity abroad, relative to the investor’s country. in recent years, the problem of attracting investments has been in the center of constant attention of the government, various aspects of this multifaceted issue have been reflected in large-scale studies conducted by domestic and foreign scientists and specialists, mainly at the industrial level. in modern conditions, the volume of investments ensures technological growth, improves the quality and quantity of production. this is important not only for attracting investments, but also for their proper use, which, as a result, increases economic efficiency. the level of investment activity and the scope of investment activities have a significant impact on the long-term activities of business entities, their development and competitiveness. the formation of a favorable investment climate creates conditions for increasing the investment opportunities of domestic and foreign investors, allowing them to make strategic and operational investment decisions. as president sh. mirziyoyev emphasized: “our main goal is to make uzbekistan a reliable and longterm partner for foreign investors. our state undertakes to develop market relations, ensure reliable protection of investor rights, further improve a favorable investment and business environment, create american journal of business management, economics and banking volume 34 march 2025 p a g e | 5 www.americanjournal.org broader conditions for fair competition, ensure the inviolability of private property and the independence of the judicial system.”1. the relevance of this topic is that creating a favorable investment climate in the country, further improving financial mechanisms for effective attraction of foreign investments, studying foreign experience in this regard and, as a result, attracting external investment sources. at the same time, a positive effect is achieved in increasing the volume of investments directed to priority areas and sectors of the economy, which, in turn, will help achieve the strategic goals of the country’s socio-economic development. increasing the attractiveness of the country’s investment climate requires in-depth study of such issues as the development of optimal tax and monetary policy, as well as the development of the stock market. literature analysis in any state, the financial mechanism is an important management element for the successful implementation of financial policy and is used as a regulator of economic relations. this is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic and social development. in the scientific literature, two conceptual approaches can be cited that express the content of the financial mechanism on a global scale. the first approach is that the financial mechanism is understood as the financial activity of enterprises themselves. the material reflection of financial relations is cash flows. the organization and procedure for their implementation of these flows are carried out in accordance with certain rules and directions that characterize the financial “technique”. this approach to defining the financial mechanism reflects the internal organization of the financial activities of enterprises. the second approach to considering the concept of “financial mechanism” is that it is understood as a set of methods and forms, ways and means of influencing the state and development of the economy. this approach reflects the external impact of financial relations, characterizes finance as a decisive factor in the influence of the management apparatus of economic entities on the economic state. currently, the following issues remain controversial: disclosure of the content and functions of the financial mechanism from the point of view of economics; the internal structure of the financial mechanism; the location of the financial mechanism in relation to the financial resources management system of economic entities; the location of the financial mechanism in connection with the financial management of the enterprise and the differentiation of their functions in the system of financial resources management of the enterprise; the existence of separate financial mechanisms (at the level of the state, region and economic entities). based on this, in the table below we consider the definitions of the concept of financial mechanism given by various economists (table 1). 1speech by the president of the republic of uzbekistan shavkat mirziyoyev at the third tashkent international investment forum. 02.05.2024. https://president.uz/uz/lists/view/7194 https://president.uz/uz/lists/view/7194 american journal of business management, economics and banking volume 34 march 2025 p a g e | 6 www.americanjournal.org table 1 definitions of the essence of the financial mechanism2 no. author and resource definition of financial mechanism 1. romanovsky m.v., beloglazova g.i. finance and credit: textbook. m.: higher education, 2006. p. 575. financial mechanism is a set of types, forms of organization of financial relations, specific methods of formation and use of financial resources and methods of their quantitative determination. 2. kovalev v.v. financial analysis / v.v. kovalev. m.: finance and statistics, 2000. p. 336. financial mechanism is a system of organization, planning and use of financial resources. 3. finance: textbook “пол ред”. g.b. polyak. — 3rd ed., — m.: unity-dana, 2008. p. 703 a financial mechanism is a system of forms, types and methods of organizing financial relations established by the state. 4. ivanitsky v.p. mechanism of investment of population savings: [monograph] / v.p. ivanitsky, e.i. melnikova. chelyabinsk: susu, 2002. -p. 254. the financial mechanism is a set of forms and methods of formation and use of legal funds by business entities to ensure their functions. 5. kees van dijk, herman savenije, volume 21 of forest policy and institutions working paper, university of minnesota, fao 2009. a financing mechanism is defined as an institutional mechanism that ensures the transfer of financial resources between the provider and the beneficiary. 6. http:www.businessdictionary.co m/definition/financialmechnism.html a financial mechanism is considered to be the method or source by which financing is provided, for example, bank loans, bond or stock issuance, reserves or savings, and proceeds from sales. based on the opinions of the above scholars and the results of the research conducted, the author concludes that, financial mechanisms for attracting foreign investments are a set of methods, forms, management tools and financial instruments for effectively attracting foreign investments. research methodology in covering this topic, along with general economic methods, special approaches to data systematization were used, namely, comparison, compilation of theoretical and practical materials, systematic analysis, abstract-logical thinking, generalization, etc. analysis and discussion of results. the financial mechanism can be considered as a set of forms of organizations of financial relations, methods of attracting and using foreign investments used by the state to create favorable conditions for the economic and social development of society (figure 1). when considering the financial mechanism, it is necessary to identify its functional relationships: attracting foreign investment, its stimulation through legislation, tax holidays and investment tax credits. 2 author’s development. american journal of business management, economics and banking volume 34 march 2025 p a g e | 7 www.americanjournal.org figure 1. financial mechanism for attracting foreign investment3 each link of the financial mechanism is an integral part of the whole. the financial mechanism includes a block of mobile elements: tax rates, tax benefits, depreciation rates and refinancing discount rates. these elements should be adjusted taking into account the interests of the subjects of economic relations. the combination of elements of the financial mechanism: forms, types and methods of organizing financial relations, constitutes the “general structure” of the financial mechanism, which is set in motion by determining quantitative parameters for each element. by forming the financial mechanism, the state seeks to ensure full compliance with the requirements of financial and investment policy, which is the key to the full implementation of its goals and objectives. forms of attracting foreign investments include: direct (real) foreign investments, portfolio (financial) investments and other investments (medium and long-term international loans and debt). despite the widespread tendency in scientific circles to recognize financial instruments as elements of the financial mechanism, a certain evolutionary path has been taken in the interpretation of this concept, but a unified view of the essence of financial instruments has not yet been developed. thus, initially a rather simplified definition was developed, according to which three main categories of financial instruments were distinguished: cash, credit instruments (bonds, loans, deposits) and methods of participation in the authorized capital (stocks, shares). in world practice, there are various methods of attracting foreign investment, the most popular of which are: establishing foreign enterprises whose assets are 100% owned by foreign investors; organizing the sale and purchase of financial assets; establishing special economic zones; establishing consortiums, concessions; establishing joint ventures through joint participation, as well as establishing subsidiaries and branches of large foreign companies and firms, announcing tenders, etc. in order to effectively attract foreign investments, management (influence) tools, which are an integral component of financial mechanisms, are also important, including tax and monetary policy and the level of development of the stock market. estimating the impact of the tax system on the development of the national economy is a complex issue. in addition, it should be remembered that there are several main directions of the fiscal system. 3 developed by the author. american journal of business management, economics and banking volume 34 march 2025 p a g e | 8 www.americanjournal.org for example, the system of temporary effects, special tax regimes, rationalization of tax rates and the system of tax privileges. the tax code of the republic of uzbekistan provides for the application of special tax benefits in accordance with the procedure established by it to enterprises established with direct foreign investment and specializing in the production of products (rendering services) in sectors of the economy according to the list approved by legislation. in particular, chapter 67, article 471 of the tax code of the republic of uzbekistan sets out the conditions for taxation of legal entities with direct private foreign investments4. according to the legislation of uzbekistan, state support for investment activities is also carried out on the basis of presidential decrees. in general, after a number of reforms in the tax sphere in uzbekistan, the tax burden on business entities has been relatively eased. for example, corporate and individual income tax is levied at a single fixed rate (15 percent for legal entities and 12 percent for individuals); the income tax rate on dividends is 5 percent; the value added tax (vat) rate is 12 percent, and property tax is 1.5 percent. the government of uzbekistan annually makes adjustments to the rates of collection of certain taxes, fees and duties. the government’s influence on the intensity of investment processes in the economy cannot be imagined without monetary regulation, which is a method of implementing monetary policy in society. monetary policy is a set of measures implemented by the state through specialized financial and credit institutions and aimed at achieving a predetermined positive economic and social result. this means that monetary regulation, as a practical component of the policy, should be aimed at achieving the same goals. monetary regulation of the economy should contribute to the activation of investment processes in the real sector of the national economy, stimulate the savings policy of residents and non-residents of the republic of uzbekistan in the national currency, and strengthen the country’s banking and financial system (figure 2). figure 2. issuance and regulatory cash flows of the central bank5 4 "tax code" of the republic of uzbekistan dated december 30, 2019. https://lex.uz/docs/4674902. 5 author’s development central bank mandatory reserves open market operations refinancing of commercial banks currency interventions placing a part of the funds attracted by the banks in the reserve accounts of the central bank repo operations lending to the banking system buying and selling foreign currency https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 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https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://lex.uz/docs/4674902 american journal of business management, economics and banking volume 34 march 2025 p a g e | 9 www.americanjournal.org regarding the rules of mandatory reserves, at present, reserve requirements do not encourage the banking system to form long-term resources that are the basis of investment assets. required reserves are funds that commercial banks are required to deposit on a separate account opened with the central bank. by changing the mandatory reserve requirements, the central bank affects the lending activities of commercial banks and interest rates. from july 1, 2024, deposits of legal entities and individuals in the national currency will be set at 4 percent, and deposits of legal entities and individuals in foreign currency at 14 percent. monetary policy is conducted by the central bank, and the main objective of this type of policy is to achieve price stability. this policy is implemented through money and interest rates (for example, the key rate). the central bank can conduct monetary policy in 4 different modes (inflation targeting mode, monetary targeting, exchange rate targeting, and hybrid mode). in accordance with the presidential decree no. pd-5877 “on improving monetary policy through a phased transition to an inflation targeting regime” dated november 18, 2019 and the law “on the central bank of the republic of uzbekistan” adopted in a new edition no. lru-582 dated november 11, 2019, price stability was established as the main objective of the national monetary policy, and the central bank began the transition to an inflation targeting regime. in addition, the decree of the president of the republic of uzbekistan no. pd-5571 dated september 2, 2017 “on priority measures to liberalize currency policy” is aimed, first of all, at radically reforming the current currency regulation system, liberalizing currency policy, and creating equal conditions for all business entities in carrying out foreign trade activities. this decree definitively resolved the issue of currency conversion for domestic and foreign investors. let us dwell on the activities of the securities market as a means of managing foreign investments. the securities market is one of the important components of any modern civilized economy. therefore, its regulation is of great importance for the entire national economic complex due to its impact on the total mass of investment resources in society. in our opinion, the system of securities market regulation should help solve the following tasks: to form an effective mechanism for attracting private investments to the corporate sector of the economy (primarily, attracting state funds for these purposes); to form a mechanism for covering the state budget deficit without inflation using securities market instruments; to create an effective mechanism for attracting state funds to investment programs using the securities market; to ensure the rights of domestic participants in global financial flows, while promoting the integration of the domestic securities market into world markets; creation of conditions for the emergence of “effective owner” in the domestic economy, etc. in conclusion, the financial mechanism of attracting foreign investments is closely related to the financial and investment policy of the state. conclusion the following conclusions and recommendations can be made based on the results of the abovementioned research on the financial mechanisms of effectively attracting foreign investments to the national economy: first, based on the experience of most developed and developing countries, use the "national regime" of regulating capital flows; secondly, it is desirable to develop a fiscal policy of promoting foreign investments specific to developing countries; thirdly, further improvement of the legal framework for attracting foreign investments within the framework of the requirements of the international trade organization; fourth, to use the experiences of the chinese state in the establishment https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 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https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 https://translate.yandex.ru/translator/%d0%a3%d0%b7%d0%b1%d0%b5%d0%ba%d1%81%d0%ba%d0%b8%d0%b9-%d0%a0%d1%83%d1%81%d1%81%d0%ba%d0%b8%d0%b9 american journal of business management, economics and banking volume 34 march 2025 p a g e | 10 www.americanjournal.org and effective operation of special economic zones in attracting foreign investment; fifth, the transition from quantitative indicators to qualitative indicators in attracting foreign direct investment; sixth, to create an electronic platform of a truthful and transparent database for foreign investors about the investment potential of the country and its regions, etc. references 1. speech of the president of the republic of uzbekistan shavkat mirziyoyev at the third tashkent international investment forum. 02.05.2024. https://president.uz/uz/lists/view/7194 2. “tax code” of the republic of uzbekistan dated december 30, 2019. https://lex.uz/docs/4674902 3. romanovsky m.v., beloglazova g.i. finance and credit: textbook. m.: higher education, 2006. – page 575. 4. kovalev v.v. financial analysis / v.v. kovalev. m.: finance and statistics, 2000. – page 336. 5. finance: textbook. ed. g.b. polyak. 3rd ed., m.: unity-dana, 2008. – page 703. 6. ivanitsky v.p. mechanism of investment of population savings: [monograph] / v.p. ivanitsky, e.i. melnikova. chelyabinsk: susu, 2002. – page 254. https://president.uz/uz/lists/view/7194 https://lex.uz/docs/4674902 american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 76 www.americanjournal.org theoretical and practical aspects of development of milk processing industry enterprises in uzbekistan khidirov temur kahramon o'g'li head of the department of education quality control of the customs institute of the customs committee, senior lieutenant e-mail: xidirov_temur@mail.ru tel:+99894-658-79-03 a b s t r a c t k e y w o r d s this article describes the theoretical and practical aspects of the development of milk processing enterprises in uzbekistan, scientific research conducted in this area, the relevance of the topic, the research methods used, practical problems, well-known brands of milk processing enterprises, the economic efficiency of the cluster system, and scientific issues related to innovative approaches to the development of milk processing enterprises. milk processing enterprises, dairy industry, international experience, well-known brands, innovative solutions, practical problems, practical recommendations. introduction today, uzbekistan is implementing large-scale practical reforms aimed at equipping production with modern technologies, improving the quality of personnel, effectively using local resources, and implementing new opportunities in the development of the food industry, including milk and dairy products. in particular, the country has set the following tasks: “continuing the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in gdp, increasing the volume of industrial production by 1.4 times, further liberalizing the leading sectors of the industry and the economy, and completing the transformation processes, and implementing the food industry development program” [1]. based on these tasks, the effective use of the cluster system in the development of milk processing enterprises in uzbekistan, improving new innovative technologies, expanding the capabilities of the green economy, and widely implementing green technologies will ensure the development of milk processing enterprises. formulation of a scientific problem the theoretical and methodological foundations of the effective use of the cluster system in agriculture and processing industries, its implementation in practice, and the development of industrial enterprises based on the cluster system have been studied in the works of the following foreign scientists, including a.marshall, m.porter, s.rosenfeld, m.joffrea, p.marijn, l.klerkx, w.poczta, j.sredzinska, american journal of business management, economics and banking volume 40 september2025 p a g e | 77 www.americanjournal.org m.chenczke, l.ngoc, and r.andrienko[2], who have conducted scientific research in this area. research has been conducted in our republic by economists ch.murodov, sh.hasanov, i.ganiev, a.u.burkhanov, b.t.salimov, m.s.yusupov, b.n.navroz-zoda, t.kh.farmonov, r.obidov, t.t.juraev, m.e.hamidov, i.s.ochilov, b.k.abdumuminov, z.khakimov, i.khotamov[3] and others on improving the cluster system, the advantages of using the cluster system in processing industry enterprises, and developing clusters in the agro-industrial system. however, the theoretical and practical aspects of the development of milk processing enterprises in uzbekistan have not been studied in the research work, and no scientific research has been carried out in this direction. therefore, the topic of the scientific article is relevant and serves as the basis for choosing the research topic. research methodology the article widely uses such methods as logical thinking, systematic approach, economic comparison, statistical analysis, observation and comparative analysis, and scientific generalization to study the problem. based on existing methodological approaches, the article widely uses scientific results based on the study of scientific research focused on the theoretical and practical aspects of the development of dairy processing enterprises. main analysis and results theoretical and practical aspects of the development of dairy processing enterprises in uzbekistan are one of the current problems today, and in order to solve this problem, the following solutions were implemented in practice as part of the research work. in particular, the effective use of a cluster system with modern capabilities in the development of dairy processing enterprises is one of the innovative solutions. therefore, an economic classification of the effective use of the cluster system in dairy processing enterprises was developed and implemented. figure 1-below shows the economic classification of the effective use of the cluster system in dairy processing enterprises. figure 1.4. economic classification of the effective use of the cluster system in dairy processing enterprises1 the figure shows that there are many effective aspects of the economic classification of the effective use of the cluster system, and it is precisely the aspects indicated that are the most important economic processes in the development of dairy processing enterprises and contribute to the emergence of new opportunities. the increasing demand of the population of uzbekistan, mainly for meat and dairy 1 author's development. 4.expands recycling options 1.increases the economic efficiency of the enterprise 3.develops systematic cooperation between enterprises 2.reduces costs in businesses american journal of business management, economics and banking volume 40 september2025 p a g e | 78 www.americanjournal.org products, is an incentive for further increasing the volume of production at enterprises specializing in the processing of dairy products. the number of enterprises processing dairy products is also increasing from year to year, which indicates that this industry is developing further. currently, a number of large, medium and small enterprises processing dairy products are operating in uzbekistan. in particular, the names of enterprises processing dairy products, having well-known brands and whose products are in demand are reflected in table 1 below. table 1 well-known brands of milk processing enterprises operating in uzbekistan2 o/n. famous brands that process dairy products 1. nestle sutim 2. melek best milk agro 3. pure milky 4. essi 5. kamilka 6. musaffo 7. rash milk 8. bio sut 9. panamilk 10. sof sut it can be seen that the milk processing enterprises listed in table 1 have completely occupied their domestic markets, and each brand has its own consumer. these enterprises are enterprises that process dairy products and produce various dairy products. each has its own enterprises and factories, workforce and brand, modern innovative technologies and sales outlets, as well as authorized funds, and has achieved a high level of economic efficiency. in addition, modern ways to develop dairy processing enterprises in our country are reflected in table 2 below. table 2 modern ways of developing dairy processing enterprises3 modern ways of developing dairy processing enterprises dairy production and processing improving infrastructure at milk processing plants organization of effective foreign economic activity among milk processing enterprises expansion of pastures and use of unused lands as pastures; increase of breeding stock in milk processing enterprises; increase of production and processing efficiency; improvement of the potential of innovative technologies development based on the cluster system; strengthening the internal logistics system; improving quality control laboratories; improving processing quality; strengthening integration between enterprises; effective use of internal and external resources; rational use of labor resources and creation of modern conditions development of international logistics; reduction of dairy imports; strengthening cooperation with international dairy companies; increasing dairy exports; study and implementation of international cluster systems in the dairy industry; improving human resources 2 developed by the author based on internet information. 3 developed based on research conducted by the author. american journal of business management, economics and banking volume 40 september2025 p a g e | 79 www.americanjournal.org table 2 shows modern ways to develop dairy processing enterprises in our country, the implementation of which will create new opportunities for the development and sustainable economic growth of dairy processing enterprises. conclusion and suggestions we believe that the theoretical and practical aspects of the development of dairy processing enterprises in our country should be based on the following basic principles, including: identification of existing problems in the dairy processing industry and application of international experience in their elimination; organization of modern clusters in the development and practical improvement of dairy processing industry enterprises; application of the experience of european countries in the development of dairy processing industry enterprises; wide implementation of theoretical and practical recommendations and proposals aimed at the development of dairy processing industry enterprises. the widespread implementation of the above recommendations will ensure the emergence of new theoretical and practical opportunities for the development of dairy processing enterprises. references 1. o‘zbekiston respublikasi prezidentining “2022-2026 yillarga mo‘ljallangan yangi o‘zbekistonning taraqqiyot strategiyasi to‘g‘risida”gi pf-60-son farmoni. 2022 yil 28 yanvar. -www.lex.uz 2. маршалл а. “принципы экономической науки” в 3-х томах. -м.: издетальская группа «прогресс», 1993 г. 594 стр.; porter м. “the competitive adventage of nations” new york: free press, 1990 г. 495 pp. 3. rozenfeld s. “bringing business clusters into the mainstream of economic development//europen planning studies” -1997-no5-p-3-23. 4. joffrea m., marijn p., klerkx l. “to cluster or not to cluster farmers? influences on network interactions, risk perceptions, and adoption of aquaculture practices” agricultural systems 173 (2019) 151–160. 5. poczta w., sredzinska j., chenczke m. “economic situation of dairy farms in identified clusters of european union countries”, agriculture 2020, 10, 92; doi:10.3390/agriculture 10040092 www.mdpi.com /journal/agriculture, received: 18 february 2020; accepted: 23 march 2020; published:27 march 2020., pp.-1,3,7,8,9. 6. andrienko r. “the role of innovation clusters in the development of innovative environment”, advances in social science” education and humanities research, volume 527 proceedings of the viii international scientific and practical conference 'current problems of social and labour relations' (ispc-cpslr 2020). pp. 58-59. 7. муродов ч., ҳасанов ш., ғаниев и. ўзбекистон қишлоқ хўжалигида қайта ишлашни ривожлантиришда агрокластерларни яратишдаги дастлабки қадамлар. // “ўзбекистон агросаноат мажмуасининг рақобатбардошлигини ошириш ва экспорт салоҳиятини юксалтириш” мавзусидаги республика илмий-амалий анжумани маъруза тезислари тўплами, тдиу, 2014 й. american journal of business management, economics and banking volume 40 september2025 p a g e | 80 www.americanjournal.org 8. бурханов а. “саноат корхоналари молиявий барқарорлигини баҳолаш усули”, “иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 6, ноябрь-декабрь, 2018 йил. -с.3-4. 9. салимов б., юсупов м. “қишлоқ хўжалиги маҳсулотларининг рақобатбардошлиги ва экспорт салоҳиятини ошириш омиллари”, “иқтисодиёт ва инновацион технологиялар” илмий электрон журнали. № 6, ноябрь-декабрь, 2014 йил. -с. 4. 10. очилов и.с., абдумуминов б.к. “кластер тизимида инновацион самарадорлик масалалари”, “иқтисодиёт ва инновацион технологиялар” илмий электрон журнал. № 2, март-апрель, 2019. с. 1-6. 11. хакимов з. “саноат кластерлари самарадорлигини таъминловчи омиллар тизими”,“iqtisodiyot va innovatsion texnologiyalar” (economics and innovative technologies) ilmiy elektron jurnali, 1/2022 январь-февраль №00057 219-220 стр. 12. хотамов и. “озиқ-овқат маҳсулотларини қайта ишлаш корхоналари иқтисодий самарадорлигини ошириш”, “iqtisodiyot va innovatsion texnologiyalar” (economics and innovative technologies) ilmiy elektron jurnali 2/2022 mart-aprel, № 00058, article doi:10.55439/eit/vol10_iss2/a20, http://iqtisodiyot.tsue.uz, 182-183 стр. http://iqtisodiyot.tsue.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 17 www.americanjournal.org improving the efficiency of bank assets: international experience ruziev bakhtiyor salimboyevich independent researcher of tsue е-mail: baxtishka5199990@yandex.com orcid: 0009-0002-4431-6659 a b s t r a c t k e y w o r d s this article analyzes the advanced experience of foreign countries in improving the efficiency of bank assets. asset management plays a crucial role in ensuring the efficiency of the banking system and achieving financial stability. the article highlights the approaches to introducing innovative asset management mechanisms in developed countries such as the usa, the european union, japan, and south korea. this experience can offer new opportunities for uzbekistan's banking system and have practical significance in increasing the profitability of local banks. the study is based on international statistical data and proposes prospects and mechanisms for applying advanced foreign practices to the national banking system. uzbekistan, bank, bank assets, asset profitability, profit, asset quality, financial stability. introduction in today's global economy, banks retain their place as the main link of the financial system. they perform tasks such as stabilization of financial markets, financing of investment projects, and meeting the financial needs of the population. however, to ensure the financial stability and profitability of banks in modern economic conditions, increasing the efficiency of their assets is one of the most important tasks. according to the world bank, the total value of assets in the us financial sector in 2023 was 27.7 trillion us dollars, which is 22% of the total assets in the entire world economic system [1]. at the same time, the assets of banks in the european union will amount to 33.5 trillion euros at the end of 2022 and remain one of the largest banking systems in the world [2]. in addition, banks in countries such as japan and south korea stand out with their innovative approach to asset management. in 2023, total assets in the banking system of uzbekistan exceeded 700 trillion soums, which indicates a significant increase among developing countries [3]. however, to further increase financial efficiency and meet international standards, it is necessary to study and apply foreign experience. this article analyzes the advanced practices of banks of foreign countries in increasing asset efficiency and pays special attention to their importance and practical application for commercial banks of uzbekistan. in this way, the possibility of implementing innovative approaches in the local banking american journal of business management, economics and banking volume 32 january 2025 p a g e | 18 www.americanjournal.org system will be considered. material and method improving the quality and efficiency of commercial banks' assets in the world and in our country is one of the most important issues, the article compares the international experiences of these issues and analyzes the specific features of methods and ways to improve the quality of assets. the article uses methods such as comparison, scientific-theoretical comparison, comparison of economic analysis, and logical approach. results when analyzing the specific aspects and positive aspects of developed countries such as the usa, european union, japan, and south korea in terms of increasing asset efficiency, their achievements in the financial system deserve attention. us banks make extensive use of innovative technologies, such as improved risk management operations through artificial intelligence and big data analysis. it also focuses on asset diversification to finance small and medium businesses. the us federal reserve system plays an important role in maintaining the liquidity of banks. it is noted that the total assets of the us banking sector reached 27.7 trillion dollars [4]. banks of the european union are regulated according to basel standards, which ensures their stability. attention is paid to "green financing" projects based on sustainable development goals. the total assets of the european banking system amount to 33.5 trillion euros, which is an important part of the global financial market [5]. japanese banks use a conservative management model and minimize the risk of assets. in order to achieve long-term stability, high-tech it platforms are widely used. the japanese banking system maintains a high level of liquidity and is characterized by low risk [6]. south korean banks emphasize digitization and innovation in asset management. support programs for the development of financial technologies will be implemented by the state. this, in turn, improves the analysis and management of assets and makes banks internationally competitive [7]. the experience of developed countries shows that innovation, streamlining, digitalization, and environmentally oriented projects are important in increasing the efficiency of bank assets. these operations can open up new opportunities for the banking system of uzbekistan and serve to increase their financial efficiency. in foreign banks, these assets are divided into different categories according to the level of risk, it should be noted that the higher the risk level of bank assets, the higher the amount of income obtained from them. various criteria are used to determine their effectiveness. the following figure shows the main criteria that determine the efficiency of assets of foreign countries. american journal of business management, economics and banking volume 32 january 2025 p a g e | 19 www.americanjournal.org figure 1.4. benchmarks determining the effectiveness of assets in foreign banks figure 1.4 shows the main criteria used in assessing the efficiency of assets in developed foreign banks. from the figure, it is clear that when determining the effectiveness of bank assets, the main attention is focused on the profitability ratio of assets, and this ratio is one of the important criteria. this ratio determines the level of profitability of bank assets, that is, what part of bank assets generates income. it is known that the importance of attracted funds in the composition of resources of commercial banks is of great importance. it is important that what part of funds attracted by banks is invested in active operations, or to be more precise, in risky assets. if more than 75% of time deposits attracted in international banking operations are placed on loans, this indicates that the bank is implementing an aggressive credit policy, if this indicator is below 65%, it means that the bank is implementing a moderate credit policy. investments in securities are one of the main asset operations of banks. along with the utility level of securities, their liquidity level is also taken into account. if the share of government securities in the composition of the bank's investments in securities is high, it indicates that the bank's financial condition and level of profitability are stable. also, the diversification of investments in securities by periods will provide an opportunity to assess the financial condition of the bank, in which it will be possible to assess the financial stability of issuers of securities made by the bank. in international banking operations, the classification of assets by sectors is considered one of the important indicators, and special attention is paid to this indicator when determining the effectiveness of assets. for this purpose, attention will be paid to what percentage of the total loans will correspond to which areas. through these indicators, not only the efficiency of the bank's assets is evaluated, but also the credit policy based on the level of risk, as well as the liquidity and profitability of the borrower's ability to pay. the location of risky assets of the bank by terms is also one of the factors that directly affect the efficiency of assets. from this point of view, it is important to determine what part of risky assets in foreign banks is placed in long-term assets and what part is in short-term assets. the main parameters determining the effectiveness of assets in foreign banks asset utilization ratio utilization ratio of borrowed funds and deposits profitability ratio of securities distribution of loans by sector asset placement terms american journal of business management, economics and banking volume 32 january 2025 p a g e | 20 www.americanjournal.org in international banking operations, the camel system, which calculates the standard rating, is widely used when assessing the assets of commercial banks. here, c is capital, a is assets, m is management, e is earnings, and l is liquidity. when evaluating the capital, the rate of return is taken into account. in this case, the profit is calculated as the average indicator of the bank's capital. in us banks, if this indicator is 13-16 percent, it is a moderate level. when using the camel system in banks, the activity of commercial banks is evaluated based on a five-point system. banks with a high level of stability are given a score of 1, and financially bankrupt banks are given 5 points. in the camel system, the main focus is on the adequacy of banks' capital and the share of risky assets in the composition of bank assets. the amount of risky assets is taken into account when evaluating the bank's capital. when determining the efficiency of commercial banks' assets in international operations, special attention is paid not only to the amount of income corresponding to the share of assets at risk but also to the amount of income corresponding to the share of bank capital and borrowed funds. the efficiency of commercial banks' capital and borrowed funds is expressed by the following equations. roc=bagiap/eq (1) here: roc – return on capital; bagiap – bank assets that generate income in the analyzed period; eq – equity. it is known that commercial banks are financially stable sources of capital resources. loans issued from these funds do not have a direct negative impact on the bank's liquidity level. in this regard, commercial banks can invest these funds in long-term assets without excessive risks and financial problems. in international operations, the ratio of income from risky assets to one som of bank capital is 0.150.20. this degree is calculated using the following utility coefficient. prfr= bagiap/frap (2) here: bagiap – bank assets that generate income in the analyzed period; frap – funds raised during the analyzed period. we know that the share of attracted funds in the resources of commercial banks is high. if these funds are not used effectively in the process of asset operations of the bank, the bank will be in a difficult situation from the financial point of view. at the same time, several problems will arise in fulfilling obligations to bank depositors and clients. of course, to effectively use these funds, it is necessary to allocate them to effective purposes, that is, assets. with the help of the second equality, we can determine the profitability ratio of the borrowed funds of commercial banks. the denominator of the equation is the net amount of the commercial banks' loans. usually, in international banking, if this ratio is 0.12-0.16, it indicates that the borrowed funds are invested in effective assets. using the above two equations, it is the profitability coefficient of all types of funds attracted to commercial banks. with the help of the following equality, the coefficient of profitability of fixedterm, i.e. stable, funds attracted to the bank is determined. american journal of business management, economics and banking volume 32 january 2025 p a g e | 21 www.americanjournal.org prbf=i/(dt+ccb+lob) (3) here: i– income prbf – profitability ratio of borrowed funds; dt – time deposits; ccb – credits of the central bank; lob – loans from other banks. this third equality determines the level of use of fixed-term funds raised by commercial banks as a result of asset transactions. according to him, if this indicator consists of a coefficient of 0.18-0.22 in the analyzed period, it means that the bank's assets are allocated to effective purposes. in international operations, one of the other indicators that determine the efficiency of commercial banks' assets is the volume of income corresponding to each soum asset of the bank, which is calculated using the following equation: aur=aig/bn (4) here: aur – asset utilization ratio; aig – income generating assets; bn – net balance. it should be emphasized that in the calculation of the fourth equality, not the one-day economic results of the bank, but the data on the long-term financial situation are used. conclusion in conclusion, the advanced practices of banks in developed countries such as the usa, the european union, japan, and south korea on increasing asset efficiency have been analyzed. in these countries, innovative technologies, such as artificial intelligence and big data analysis, asset diversification, "green financing" and effective regulation systems are of primary importance in achieving the efficiency of bank assets. from this point of view, we have developed the following suggestions: 1. it is necessary to introduce innovative technologies in the management of bank assets. in the banking system of uzbekistan, it is necessary to create an opportunity to increase the efficiency of assets through the extensive use of artificial intelligence, big data analysis, and digital technologies. this is especially effective in risk management and asset diversification. 2. it is appropriate to implement "green financing" projects. based on the experience of the european union, banks should introduce special mechanisms for financing environmental projects that support sustainable development. this not only increases the profitability of banks but also contributes to the ecological stability of the country. 3. it is necessary to pay attention to diversifying the composition of assets. it is necessary to use the financial strategies of us and japanese banks and ensure the placement of assets in various sectors. this plays an important role in the financing of small and medium-sized businesses in particular and has a supporting effect on all sectors of the economy. references 1.world bank. (2023). banking sector overview 2023. retrieved from www.worldbank.org 2.european central bank. (2022). european banking statistics report. retrieved from www.ecb.europa.eu american journal of business management, economics and banking volume 32 january 2025 p a g e | 22 www.americanjournal.org 3. central bank (2023). indicators of the financial and banking system of the republic of uzbekistan. retrieved from www.cbu.uz 4.world bank. banking sector overview. retrieved from www.worldbank.org 5.european central bank. banking statistics report. retrieved from www.ecb.europa.eu 6.bank of japan. financial system report. retrieved from www.boj.or.jp 7.bank of korea. financial stability report. retrieved from www.bok.or.kr http://www.cbu.uz/ http://www.bok.or.kr/ american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 73 www.americanjournal.org the essence, classification, and operational mechanisms of islamic finance instruments safarova nasiba gulmurod qizi, tashkent state university of economics, +998916380799, n.safarova@tsue.uz a b s t r a c t k e y w o r d s this article presents an in-depth academic exploration of the essence, systematic classification, and functional mechanisms of islamic finance instruments within the framework of contemporary financial systems. through a qualitative approach, the paper discusses the theoretical underpinnings and practical implementation of shariah-compliant financial contracts such as mudarabah, musharakah, murabaha, ijarah, and sukuk. it evaluates their role in promoting ethical, asset-based, and risk-sharing finance in both muslim-majority and non-muslim jurisdictions. the study underscores the significance of islamic financial instruments in contributing to financial inclusion, economic justice, and sustainable development, while also identifying key challenges in standardization, regulation, and awareness that must be addressed to realize the full potential of islamic finance globally. islamic finance, shariah compliance, risk-sharing, murabaha, sukuk, ijarah, financial inclusion, sustainable finance, islamic contracts introduction in recent decades, islamic finance has emerged as a robust and ethically grounded alternative to the conventional financial system, primarily rooted in the principles of shariah, which emphasize justice, transparency, and risk-sharing as key tenets of economic behavior. the islamic financial system prohibits interest (riba), excessive uncertainty (gharar), and speculative transactions (maysir), while encouraging transactions that are linked to real economic activity and underpinned by tangible assets or services. this distinct philosophical foundation offers a finance model that is not only religiously acceptable to muslims but also appealing to broader audiences interested in ethical and socially responsible investment. the growing demand for shariah-compliant financial products has led to the development and widespread adoption of various islamic financial instruments designed to fulfill the financing, investment, and liquidity management needs of individuals, businesses, and governments. however, despite significant progress in market development, regulatory reforms, and institutional capacity building, there remains a considerable gap in academic and practical understanding regarding the classification and operational mechanisms of these instruments. this study aims to address that gap by american journal of business management, economics and banking volume 35 april 2025 p a g e | 74 www.americanjournal.org systematically analyzing the essential features, categories, and functioning of islamic finance instruments in light of modern financial theory and shariah principles. methodology the research employs a qualitative descriptive methodology based on content analysis of relevant academic literature, institutional reports, and regulatory guidelines pertaining to islamic finance. primary sources include post-2020 peer-reviewed journal articles, reports by international financial institutions such as the islamic financial services board (ifsb), accounting and auditing organization for islamic financial institutions (aaoifi), and world bank, as well as islamic jurisprudential interpretations. the analysis is structured around the imrad framework, facilitating a comprehensive exploration of both theoretical and applied aspects of islamic financial instruments. the study does not involve primary data collection but relies on extensive secondary data from reputable academic and institutional sources to ensure scholarly rigor and contextual relevance. literature review the body of academic literature on islamic finance has expanded considerably over the past two decades, particularly after the 2008 global financial crisis, which prompted a renewed interest in ethical finance models. studies such as hasan and widiastuti (2023) and karim and rahman (2022) have emphasized the resilience, inclusiveness, and ethical orientation of islamic finance instruments, highlighting their potential role in achieving financial stability and inclusive economic growth. according to the islamic financial services industry stability report (ifsb, 2022), the global islamic finance market reached over usd 3 trillion in assets, driven primarily by the increasing demand for shariah-compliant banking, insurance (takaful), and capital market products. several classifications of islamic financial instruments have been proposed in the literature, generally grouped into equity-based (e.g., mudarabah and musharakah), debt-based or trade-based (e.g., murabaha and salam), lease-based (e.g., ijarah), and capital market instruments (e.g., sukuk). scholars such as al-khalifa and khan (2022) have explored how these instruments contribute to sustainable development by promoting responsible financing practices, while others have analyzed their structural complexity and legal implications. despite the existing body of research, there remains a need for holistic analysis that combines the philosophical essence, formal classification, and operational dynamics of islamic finance instruments, which this study aims to provide. analysis the classification of islamic financial instruments can be effectively understood through the lens of contractual typologies and their respective economic functions. the first and perhaps most foundational category consists of profit-and-loss sharing (pls) instruments, namely mudarabah and musharakah. mudarabah is a trust-based partnership where one party provides the capital and the other contributes expertise or labor, with profits shared according to a pre-agreed ratio and losses borne solely by the capital provider unless negligence is proven. musharakah, on the other hand, involves both parties contributing capital and sharing profits and losses in proportion to their investments, embodying a more participative and democratic form of partnership. the second category includes trade-based instruments, which are particularly common in islamic banking operations. murabaha, the most frequently used instrument, involves a cost-plus sales contract american journal of business management, economics and banking volume 35 april 2025 p a g e | 75 www.americanjournal.org where the islamic financial institution purchases a commodity and resells it to the client at a predetermined profit margin. this structure mimics the cash flow of conventional loans while remaining shariah-compliant, as the bank assumes ownership and the associated risk of the asset prior to its sale. other trade-based instruments include salam, a forward sale where payment is made in advance for goods delivered later, and istisna’, a manufacturing or construction contract suitable for infrastructure development. the third category comprises lease-based contracts, with ijarah being the flagship product. in a typical ijarah agreement, the financial institution acquires an asset and leases it to the client in exchange for periodic rental payments. importantly, the lessor retains ownership, which differentiates it from conventional lease-purchase agreements. a common variant is ijarah muntahia bi tamleek, where the lessee acquires ownership at the end of the lease term, either through gift or separate sale contract. these contracts are widely used for equipment leasing, real estate financing, and vehicle leasing. the fourth and most innovative category includes islamic capital market instruments, notably sukuk, which are often but inaccurately labeled as "islamic bonds." unlike bonds, which are debt obligations paying interest, sukuk represent ownership in a pool of tangible assets, usufructs, or investment projects. the return to investors is derived from the income generated by the underlying assets, and not from interest payments. sukuk structures can be based on various contracts such as ijarah, murabaha, or musharakah, each with specific risk-return characteristics. sukuk have become a crucial mechanism for financing large-scale infrastructure projects, sovereign needs, and private sector investments in a shariah-compliant manner. discussion the analysis of islamic finance instruments reveals that their design and implementation are not only guided by shariah principles but are also inherently aligned with the objectives of ethical finance, financial stability, and social justice. unlike conventional instruments, which often prioritize financial gain over societal welfare, islamic financial instruments are designed to ensure that capital is employed productively and equitably, with risk and reward shared among stakeholders. the requirement for real economic activity and tangible assets in every transaction reduces the likelihood of speculative bubbles and systemic risk, as evidenced by the relative stability of islamic banks during the 2008 financial crisis (kammer & jobst, 2021). despite these strengths, islamic finance instruments face several operational and institutional challenges. regulatory heterogeneity across jurisdictions, variations in shariah interpretation, and lack of standardized contracts can lead to inconsistencies in practice and pose barriers to cross-border investments. moreover, the legal infrastructure in many countries is not fully equipped to support the enforcement of islamic contracts, resulting in legal uncertainty and compliance risks. the absence of a globally accepted dispute resolution framework further complicates matters for islamic financial institutions operating internationally. another key issue is the limited awareness and understanding of islamic financial instruments among the general public, policymakers, and even financial professionals, particularly in non-muslimmajority contexts. this knowledge gap hampers market expansion and innovation, as potential investors and users may remain unaware of the benefits and functionalities of these products. furthermore, while instruments like murabaha and ijarah are widely used due to their simplicity and american journal of business management, economics and banking volume 35 april 2025 p a g e | 76 www.americanjournal.org comparability with conventional finance, the profit-and-loss sharing instruments, which embody the true spirit of islamic finance, are underutilized due to their higher risk and monitoring requirements. nonetheless, the evolving intersection between islamic finance and sustainable finance presents new opportunities for growth and integration. instruments such as green sukuk, social impact funds, and waqf-based microfinance align well with the united nations sustainable development goals (sdgs), offering islamic finance a strategic role in global development agendas. financial technology (fintech) also offers potential for improving access, transparency, and efficiency in the delivery of islamic financial services, though it necessitates careful shariah supervision and technical innovation. conclusion in conclusion, islamic finance instruments represent a unique and increasingly relevant component of the global financial system, offering alternatives that are not only compliant with religious law but also in alignment with ethical, social, and economic objectives. their essence lies in fostering justice, equity, and accountability in financial transactions, while their classification provides a structured framework for understanding their diverse applications. the operational mechanisms of these instruments are grounded in transparency, asset-backing, and risk-sharing, all of which contribute to financial stability and sustainable development. the future growth and effectiveness of islamic finance instruments, however, depend on overcoming significant challenges, including regulatory fragmentation, lack of standardization, and limited market awareness. to fully realize their potential, there is a pressing need for harmonized legal frameworks, institutional innovation, public education, and international collaboration. as global financial systems move toward more responsible and inclusive models, islamic finance stands poised to play a vital role, provided it continues to evolve while remaining true to its foundational principles. references 1. ifsb. (2022). islamic financial services industry stability report 2022. islamic financial services board. https://www.ifsb.org 2. aaoifi. (2023). shariah standards for islamic financial institutions. accounting and auditing organization for islamic financial institutions. https://aaoifi.com 3. world bank. (2021). islamic finance: a catalyst for financial inclusion. https://www.worldbank.org 4. al-khalifa, a., & khan, t. (2022). "islamic finance instruments and sustainable development goals: a global perspective." journal of islamic finance, 11(2), 34–49. 5. kammer, a., & jobst, a. a. (2021). "islamic finance and financial stability: a review of the empirical literature." imf working papers, wp/21/197. 6. hasan, z., & widiastuti, t. (2023). "the role of islamic contracts in enhancing financial inclusion in oic countries." review of islamic economics and finance, 5(1), 1–19. 7. karim, n. a., & rahman, a. (2022). "standardizing islamic finance: harmonization efforts and regulatory challenges." journal of islamic banking and finance research, 8(1), 45–61. 8. islamic development bank (idb). (2023). innovative islamic financial instruments for postpandemic recovery. 9. icd-thomson reuters. (2021). islamic finance development report 2021. https://www.ifsb.org/ https://aaoifi.com/ https://www.worldbank.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 69 www.americanjournal.org foreign countries' experience in assessing the financial stability of commercial banks sattarova gulshan mukhiddinovna researcher of the banking and finance academy of the republic of uzbekistan e-mail: gulshan.sattarova@inbox.ru a b s t r a c t k e y w o r d s the article analyzes and studies the experience of foreign countries in assessing the financial stability of commercial banks. in particular, the advanced foreign experience of the usa, germany, france, italy, and the russian federation in this regard, as well as the opinions and comments of economists, are analyzed. commercial bank, financial stability of banks, assessment of financial stability, camels, patrol, orap rating systems, assessment of bank risks. introduction the issue of financial stability of commercial banks and its provision is one of the most pressing issues for all countries. in order to ensure the financial stability of commercial banks, it is necessary, first of all, to pay great attention to the issue of assessing their activities and constantly improve it. this is because the methodology for assessing the financial stability of banks in different countries is different. therefore, in our article we will try to analyze the experience of foreign countries in assessing the financial stability of commercial banks. at the current stage of economic development of organizational structures, stress testing is the most widely used system at the international level for assessing the financial stability of commercial banks. the international monetary fund defines stress testing as “a method for assessing the sensitivity of a portfolio to significant changes and events in macroeconomic indicators.” stress testing of the financial stability of commercial banks based on various scenarios and forecasting future processes gives good results. analysis of relevant literature the issue of financial stability of commercial banks and its assessment has been studied not only by domestic economists, but also by economists from foreign countries. in particular, d.yu. melnik in his research studies the assessment of financial stability of commercial banks, dividing them into the following groups.[1] 1. assessment through rating systems (patrol, orap, camels). 2. ratio analysis system (bakis). 3. complex systems for assessing bank risks (rate, rast). american journal of business management, economics and banking volume 30 november 2024 p a g e | 70 www.americanjournal.org 4. statistical models (fims, saaba). in turn, e.a. egorkin additionally adds macroprudential control to this group and includes financial stability indicators and a stress test system.[2] u.r. bayram, a.v.paramonova and s.i.zikiriyaeva conditionally divide all methods of assessing the financial stability of banks into two groups, local and foreign groups.[3] russian economist v. s. kromonov[4] is a scientist who created a model for assessing the reliability of commercial banks, and developed an integrated index of cumulative indicators of bank reliability based on six criteria of banking activity. as a result of the above studies, it can be concluded that the issue of assessing the financial stability of commercial banks is constantly improving, it has a dynamic nature, and its methodology will change in the future as economic processes change. research methodology if a certain rating is given to the evaluation of the bank's activity and its financial stability, then the rating system of evaluating these banks will be used. the rating determined as a result of the intervention of the bank's supervisory body and management is the camel rating system. the camel rating system was developed in the usa and has been widely used since 1979. in 1997, the camel rating system was modified to include the "s" component and is now known as the camels rating system. the main components of the camels rating system are: capital adequacy (c), asset quality (a), management quality (m), operations quality and profitability (e), liquidity (l) and sensitivity to market risks (s). the camels rating system is developed and used by three agencies, the us federal reserve system, the federal deposit insurance corporation, and the comptroller of the currency. n.v. nepomnyashchaya and a.v. dementieva pay special attention to this rating system in their research [5]. they point out in their research that this is a standardized evaluation method, and that the bias of analysts evaluating banks affects the effectiveness of this rating. the camels rating system is currently used in several developed and developing countries, including the republic of uzbekistan, in addition to the united states. italy has been using the patrol rating system to assess the financial stability of commercial banks since 1993. it is adapted to the italian banking market and has many similarities with the us camels rating system.[6] its main components are the profitability of banks, credit risk, banking activity and liquidity. the french orap rating system, introduced by the french banking commission, takes into account the specific characteristics of banks in this country. it identifies the main problems that commercial banks face in assessing their financial stability. the assessment of banks using the orap rating is divided into internal and external assessments. the number of components to which grades from 0 to 5 are assigned is 14. after the ratings are assigned, they can be reviewed and changed by supervisory authorities. another country that uses its own rating methodology is germany. unlike all other ratings, it is extensive, containing 47 coefficients, and was first used in practice in 1997. the acceleration of analysis when using this technique is due to its standardization. however, the process of calculating such coefficients is time-consuming. american journal of business management, economics and banking volume 30 november 2024 p a g e | 71 www.americanjournal.org if we talk about statistical models, they are based on retrospective analysis. the formation of a statistical model occurs due to data obtained during the analysis of a long period of time. using this model, it is possible to identify patterns inherent in the work of credit institutions. among the statistical methods, we can distinguish the method saaba, created by the french banking commission, and the method fims (financial institutions monitoring system), developed in the usa in 1993.[7] in the first case, the technique includes three diagnostic blocks: 1) analysis of bank portfolios; 2) analysis of leadership quality; 3) quality of management, control, profitability and liquidity. the reliability of the bank is assessed according to the results of the analysis of these three blocks. in addition, in this method, 1 is the best result, and 5 means that the bank is on the verge of bankruptcy.[8] the second method (fims) is based on two stages, the first of which is the calculation and analysis of 30 coefficients that allow to determine the current state of the bank. the second stage is a forecast of the probability of bankruptcy for the next 2-3 years, but does not allow to identify areas for improving the situation.[9] in russia, the methodology developed by the central bank of the russian federation is used. the assessment is carried out by groups of indicators, including: 1) a group of capital assessment indicators; 2) a group of asset assessment indicators; 3) a group of quality assessment indicators of bank management; 4) a group of profitability assessment indicators; 5) a group of liquidity assessment indicators. in the work of l.yu. piterskaya, it is argued that the decomposition approach, the dupont method, the gordon model, the sharpe model are some of the methods used in countries with developed market economies, but are not used in russia.[10] among the reasons for this situation, one can single out the insufficient development of information issues, which is largely related to ensuring cost-benefit analysis. financial crises, changes in the economy and political events affect the methodology of analysis in industrially developed countries.[11] analysis and results as a result of studying the evaluation of the financial stability of commercial banks, it was found that the level of use of the analyzed database in the experience of foreign countries, the presence and importance of quantitative and qualitative indicators, expert assessment and determination of the rating based on its availability and analytical data. we can see these processes in the table below. table 1 comparative analysis of methods of foreign countries evaluation methods database for analysis quantitative indicators quality indicators expert evaluation таҳлил асосида рейтинг camels open information of banks in the media + + + + rate open information of banks according to the results of on-site inspections + + + patrol open information of banks according to the results of on-site inspections + + orap open information of banks according to the results of on-site inspections + + + + fims open data of banks + saab open data of banks + bakis open data of banks + american journal of business management, economics and banking volume 30 november 2024 p a g e | 72 www.americanjournal.org each of these methods has its advantages and disadvantages, and it can be seen that almost all sources are determined by open bank statements, and some based on the results of on-site verification. quantitative indicators describe each of the compared methods, but not all of them have qualitative indicators and ratings. we can compare the methods of assessing the financial stability of domestic and foreign banks through the following table. table 2 comparative analysis of methods of assessing the financial stability of commercial banks evaluation methods database for analysis quantitative indicators quality indicators expert evaluation rating based on analysis kromonova methodology accountability + + + expert agency methodology accountability + + + kommersant methodology open accountability + + + camels open accountability based on bank information in the media + + + + rate open information of banks according to the results of on-site inspections + + fims open accountability + saab open accountability + bakis open accountability + g.g. murzagulova, in her research, emphasizes that the use of simplified analysis methods abroad is related to the fact of the historical development of banking activities in each individual country. [12] conclusions and suggestions it is advisable to assess the financial stability of commercial banks, while at the same time improving them, taking into account current changes and risks. as a result of the analysis, it was found that when assessing the financial stability of commercial banks of foreign countries, they are carried out based on their published financial reporting data, the most widespread component of the analysis is quantitative indicators, and qualitative indicators are often not taken into account. at the same time, we can see that in recent times, expert assessments have become one of the most relevant issues in assessing the financial stability of commercial banks. references 1. мельник д.ю. базовые элементы и основные составляющие экономической безопасности банка // вестник евразийской науки. – 2018. – № 4. 2. егоркин е.а. зарубежные методические подходы, применяемые для оценки финансовой устойчивости региональной банковской системы // региональные проблемы преобразования экономики. – 2014. – № 11. – с. 143–147 american journal of business management, economics and banking volume 30 november 2024 p a g e | 73 www.americanjournal.org 3. байрам у.р. преимущества и недостатки методик оценки финансовой устойчивости коммерческих банков // символ науки. – 2016. – с. 135–140 4. кромонов в.с. методика составления рейтинга надежности банков // профиль. 1998. № 20 (92) 5. непомнящая, н. в. анализ финансовой устойчивости коммерческого банка с использованием рейтинговой системы camel / н. в. непомнящая, а. в. дементьева // сборник статей iv международной научно-практической конференции / под редакцией о. а. лузгиной. – 2019 6. егоркин, е. а. зарубежные методические подходы, применяемые для оценки финансовой устойчивости региональной банковской системы / е. а. егоркин // региональные проблемы преобразования экономики. – 2014. – № 11. – с. 143–147 7. rebel allen cole fims_a_new_financial_institutions monitoring_system_for_banking organizations.https://www.researchgate.net/publication/254864959 8. shevrinovsky, v. n. the development of banking systems monitoring: analysis of international experience / v. n. shevrinovsky // banking technology. – 2009. – № 5. 9.тарханова е.а. устойчивость коммерческих банков / е. а. тарханова. – тюмень, 2003. 10.питерская л.ю. методы оценки финансовой устойчивости и надежности коммерческого банка / л. ю. питерская // экономика и управление в 21 веке: тенденции развития. – 2013 11.кашин а.в. методика анализа финансовых результатов деятельности коммерческого банка / а. в. кашин // экономический потенциал студенчества в региональной экономике : материалы xiii межвузовской научнопрактической конференции / под науч. ред. н. л. будахиной. – москва, 2019 12.мурзагулова г.г.сравнительный анализ зарубежных методик оценки финансовой устойчивости коммерческих банков / г. г. мурзагулова // материалы всероссийской научнопрактической конференции, посвященной 110-летию башкирского государственного университета / отв. редактор г. а. галимова. – 2019. https://www.researchgate.net/publication/254864959 american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 33 www.americanjournal.org green tourism: new horizons for the economy of karakalpakstan sobirova nilufar bekpo‘lat qizi assistant of the department of management, tashkent state university of economics tashkent, uzbekistan a b s t r a c t k e y w o r d s this article explores the potential of green tourism as a sustainable economic development pathway for karakalpakstan, a region in northwestern uzbekistan known for its unique cultural heritage and ecological challenges, including the environmental degradation of the aral sea. given the region's distinct landscape, biodiversity, and traditional lifestyle, green tourism presents an opportunity for economic growth while prioritizing environmental preservation. this paper discusses the current state of tourism in karakalpakstan, the opportunities and challenges for developing green tourism, and strategies to promote sustainable travel in the region. through a review of relevant case studies and global best practices, the study highlights how green tourism could stimulate local economies, create jobs, and raise awareness of environmental protection. the article concludes by recommending initiatives that could help karakalpakstan become a model of sustainable tourism in central asia. green tourism, karakalpakstan, sustainable development, ecotourism, economic growth, environmental preservation, aral sea. introduction karakalpakstan, a semi-autonomous region in uzbekistan, is known for its vast deserts, unique cultural heritage, and stark environmental challenges, particularly due to the shrinking of the aral sea. this environmental crisis has significantly impacted the livelihoods of locals and caused severe ecological and socio-economic difficulties. however, karakalpakstan’s distinctive landscapes, historical sites, and commitment to cultural preservation provide an opportunity to attract tourists seeking authentic and eco-friendly experiences. green tourism, which emphasizes sustainability, environmental awareness, and cultural respect, offers karakalpakstan a potential path for economic growth without compromising the region's natural resources. green tourism can boost karakalpakstan’s economy by creating jobs, increasing income for local communities, and generating revenue for conservation efforts. this article explores the prospects of green tourism in karakalpakstan, analyzing the region's tourism potential, environmental constraints, and strategies to overcome challenges in developing a sustainable tourism industry. american journal of business management, economics and banking volume 30 november 2024 p a g e | 34 www.americanjournal.org main part 1. overview of green tourism and its relevance to karakalpakstan green tourism, also known as eco-tourism, focuses on responsible travel that minimizes environmental impact and promotes conservation. this type of tourism aims to foster an appreciation for natural and cultural heritage while ensuring economic benefits for local communities. in karakalpakstan, green tourism aligns well with the region's unique environmental context, as it provides a framework to attract visitors interested in sustainable travel while addressing ecological concerns. due to the environmental damage in the aral sea area, karakalpakstan has gained global attention as a region in urgent need of ecological restoration. green tourism could support environmental efforts by raising awareness and funding for conservation projects, thus transforming karakalpakstan’s economic model from resource extraction to sustainable tourism development. 2. key attractions for green tourism in karakalpakstan several unique aspects of karakalpakstan make it an attractive destination for eco-tourists, including: aral sea region: once the fourth-largest lake in the world, the aral sea has been a symbol of environmental degradation. the exposed seabed has created a desert known as the aralkum, which attracts visitors interested in environmental history and landscape photography. eco-tourism activities could include guided tours that highlight restoration efforts and educate visitors on sustainable water management practices [1]. nukus and the savitsky museum: nukus, the capital of karakalpakstan, hosts the savitsky museum, which contains one of the largest collections of soviet avant-garde art. this museum offers a cultural dimension to green tourism, drawing visitors interested in art, history, and anthropology. the integration of green practices, such as sustainable energy usage and waste management, can enhance the museum’s role in green tourism [2]. natural landscapes and biodiversity: the ustyurt plateau and sudochye lake are home to unique flora and fauna, including migratory bird species. this natural heritage can be a focal point for ecotourists interested in wildlife observation, photography, and conservation. by organizing controlled eco-tours, karakalpakstan can offer unique nature experiences while protecting these delicate ecosystems [3]. 3. economic benefits of developing green tourism in karakalpakstan green tourism presents several economic benefits for karakalpakstan: job creation: green tourism can provide direct and indirect employment opportunities, including ecoguides, hospitality services, and local handicraft production. employment in sustainable tourism could help diversify the regional economy, which is currently reliant on agriculture and limited industries [4]. income generation for local communities: by promoting local handicrafts, traditional music, and karakalpak cuisine, green tourism can support local businesses and provide a sustainable income source. this income can, in turn, contribute to conservation efforts and improve living standards [5]. revenue for environmental conservation: green tourism can generate funds through eco-taxes, park entrance fees, and donations that can be reinvested in local conservation projects. these funds could be allocated towards reforestation, biodiversity protection, and other environmental restoration projects, particularly around the aral sea basin [6]. american journal of business management, economics and banking volume 30 november 2024 p a g e | 35 www.americanjournal.org 4. challenges to green tourism development in karakalpakstan despite the potential benefits, several challenges hinder the development of green tourism in karakalpakstan: environmental degradation: the drying of the aral sea has led to soil salinization and air pollution, which pose health risks to both locals and visitors. these issues make certain areas less attractive for tourism, highlighting the need for environmental restoration initiatives [7]. lack of infrastructure: karakalpakstan’s tourism infrastructure, including accommodation, transport, and information services, remains underdeveloped. the limited availability of eco-friendly facilities and sustainable transport options further constrains green tourism development. significant investment is needed to build a sustainable tourism infrastructure that supports eco-friendly travel [8]. limited awareness and marketing: the region is relatively unknown as a tourism destination, and there is limited awareness about green tourism benefits among local communities. efforts to promote karakalpakstan as an eco-tourism destination are essential to attract responsible travelers and investors interested in sustainable tourism development [9]. 5. strategies for promoting green tourism in karakalpakstan to overcome these challenges and realize the potential of green tourism, the following strategies are recommended: a. environmental restoration and conservation programs restoration efforts around the aral sea should be a priority to mitigate environmental issues and create a more hospitable environment for tourism. by collaborating with international organizations, karakalpakstan can implement reforestation projects and introduce sustainable water management practices to improve air quality and soil health [10]. b. development of eco-friendly infrastructure investing in eco-friendly infrastructure, such as energy-efficient hotels, waste recycling programs, and sustainable transportation, is crucial. green certifications for tourism businesses can encourage local enterprises to adopt sustainable practices, attracting eco-conscious tourists while protecting the environment [11]. c. community involvement and education local communities should be actively involved in green tourism initiatives to ensure that they benefit from tourism development. educational programs can raise awareness of sustainable tourism practices, enabling residents to participate as guides, artisans, and small business owners. local involvement is essential for preserving cultural heritage and fostering community pride in environmental conservation [12]. d. marketing and partnerships effective marketing strategies, including social media campaigns, partnerships with international travel agencies, and participation in eco-tourism events, can boost karakalpakstan’s visibility as a green tourism destination. highlighting unique experiences, such as tours of the aralkum desert and american journal of business management, economics and banking volume 30 november 2024 p a g e | 36 www.americanjournal.org traditional karakalpak villages, can attract international tourists seeking eco-friendly travel experiences [13]. conclusion green tourism offers karakalpakstan a promising path toward sustainable economic development, addressing both environmental and socio-economic challenges. by capitalizing on its unique landscapes, cultural heritage, and eco-tourism potential, the region can diversify its economy, create jobs, and contribute to environmental conservation. however, achieving this vision requires overcoming infrastructure and environmental challenges, raising awareness, and investing in sustainable development. with a comprehensive strategy and commitment to sustainable practices, karakalpakstan has the potential to emerge as a leading eco-tourism destination in central asia, benefiting both local communities and visitors. references 1. a. mclachlan and j. reza, "the aral sea crisis: environmental degradation and eco-tourism opportunities," international journal of environmental studies, vol. 23, pp. 123-135, 2020. 2. m. lee, "art, heritage, and eco-tourism in uzbekistan: a focus on the savitsky museum," tourism and cultural studies, vol. 11, pp. 45-58, 2019. 3. t. kim, "exploring karakalpakstan’s biodiversity hotspots: challenges and prospects for ecotourism," ecology and tourism research, vol. 19, pp. 67-78, 2021. 4. p. salimova, "green tourism as a source of employment in central asia," journal of sustainable tourism development, vol. 18, pp. 210-223, 2021. 5. e. jones and d. park, "local economies and eco-tourism: case studies from central asia," regional economic studies, vol. 27, pp. 39-49, 2020. 6. s. akhmadov, "funding environmental conservation through eco-tourism: uzbekistan’s approach," sustainable economic development review, vol. 8, pp. 102-115, 2019. 7. r. ibragimov, "the environmental impact of the aral sea and implications for tourism," uzbekistan environmental journal, vol. 10, pp. 88-100, 2020. 8. l. zheng, "infrastructure development and eco-tourism potential in rural central asia," tourism infrastructure studies, vol. 22, pp. 135-147, 2021. 9. m. ogura, "marketing green tourism in central asia: lessons from global case studies," journal of eco-tourism marketing, vol. 14, pp. 55-70, 2019. 10. g. evans and s. karimov, "restoration strategies for the aral sea and green tourism prospects," environment and development journal, vol. 5, pp. 101-116, 2020. 11. j. bryant, "sustainable infrastructure for eco-tourism: an emerging priority in uzbekistan," green development quarterly, vol. 15, pp. 33-46, 2019. 12. o. tursunova, "community participation in eco-tourism: case studies from uzbekistan," tourism for development review, vol. 12, pp. 29-44, 2021. 13. y. park and a. kim, "promoting green tourism through partnerships and digital media," sustainable tourism strategies, vol. 9, pp. 50-66, 2019. 14. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392. american journal of business management, economics and banking volume 30 november 2024 p a g e | 37 www.americanjournal.org 15. абдуллаев, а. к. (2023). роль транспортной дипломатии в развитии внешнеторговых маршрутов республики узбекистан. постсоветские исследования, 6(3), 315-323. 16. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 17. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 18. abdullaev, a. (2017). transport aspect of cooperation within sco. international relations: politics, economics, law, 2017(2), 11. 19. abdullaev, a. k. the peculiarities of the use of the special lexis. тошкент2021, 23. 20. палванова, у. б. (2024). значение формирования навыков оказания первой помощи у студентов в не медицинских образовательных учреждениях. periodica journal of modern philosophy, social sciences and humanities, 27, 93-98. 21. палванова, у., якубова, а., & юсупова, ш. (2023). ультразвуковое исследование при спленомегалии. talqin va tadqiqotlar, 1(21). 22. якубова, а. б., & палванова, у. б. проблемы здоровья связанные с экологией среди населения приаралья мақола научно-медицинский журнал “авиценна” выпуск № 13. кемерово 2017г, 12-15. 23. азада, б. я., & умида, б. п. (2017). проблемы здоровья связанные с экологией среди населения праралья. авиценна, (13), 12-14. 24. степанян, и. а., изранов, в. а., гордова, в. с., белецкая, м. a., & палванова, у. б. (2021). ультразвуковое исследование печени: поиск наиболее воспроизводимой и удобной в применении методики измерения косого краниокаудального размера правой доли. лучевая диагностика и терапия, 11(4), 68-79. 25. stepanyan, i. a., izranov, v. a., gordova, v. s., beleckaya, m. a., & palvanova, u. b. (2021). ultrasound examination of the liver: the search for the most reproducible and easy to operate measuring method of the right lobe oblique craniocaudal diameter. diagnostic radiology and radiotherapy, 11(4), 68-79. 26. batirovna, y. а., bahramovna, p. u., bahramovna, p. s., & ogli, i. a. u. (2019). effective treatment of patients with chronic hepatitis, who live in ecologically unfavorable south zone of aral sea region. наука, образование и культура, (2 (36)), 50-52. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 1 www.americanjournal.org issues of formation of private banks’ resource base rufat baxtiyorovich kurbanov phd., professor of tashkent state university of economics e-mail: r.qurbonov@tsue.uz orcid: 0000-0002-6841-9292 a b s t r a c t k e y w o r d s this article is devoted to the formation of the resource base of private banks operating in the republic of uzbekistan. the data are taken from the analysis of financial statements on the banking system issued by the central bank of the republic of uzbekistan. it covers the activities of 6 existing private banks in the republic of uzbekistan. to solve the problem, we used the regression analysis and correlation method. in this case, we draw the appropriate conclusions using the method of regression and correlation analysis of the factors affecting the resource base of private banks. the study found that the volume of assets of private banks in the country (bank size), the number of branches, long-term interest rates, return on capital, and return on assets are positively linked to the resource base of private banks. in addition, a conclusion was drawn on the elimination of abstract problems in the formation of the resource base of private banks. private banks, resource base, roa, roe. introduction in the world banking practice, the resource base of the banking system is necessary to stabilize the current socio-economic situation and make important strategic decisions on the future development of each country. the formation of resources for all commercial banks plays an important role, as the composition and size of their resources directly expand the scope of active operations of banks. therefore, the amount of profit they will receive in the future is the key to the success of banking activities. according to tsyhanyuk, (2014) "these processes require banks to create their sufficient resource base, optimize the structure and strengthen it" [1]. at present, the issues of the resource base and strengthening of commercial banks, their level of capitalization and insufficient resource base, weakness in attracting and increasing the volume of time and savings deposits, and the weak attraction of subordinated debt obligations by them are not sufficiently disclosed. in particular, issues related to increasing the level of capitalization of commercial banks, ensuring a stable resource base, and further strengthening the resource potential remain relevant in ensuring the stability of the resource base of commercial banks. the ultimate goal of radical reforms in the banking and financial system of the country is to strengthen the resource base of banks, increase the level of bank capitalization, and increase the confidence of businesses and the public in the banking system. in particular, "the issue of increasing the minimum american journal of business management, economics and banking volume 36 may2025 p a g e | 2 www.americanjournal.org authorized capital of banks to 500 billion soums by 2025" [2] and "the task of deepening the reform of the banking system, increasing the deposit base, strengthening their financial stability and reliability” [3]. in our country, the "strategy for reforming the republic’s banking system for 2020-2025" [2] provides for the gradual privatization of state shares in 6 banks. these reforms require a further increase in the share of private banks and the strengthening of their resource base. literature review in times of banking crises in international practice, the bank's resource base is the most important factor in ensuring its stability. alexei mints, victoria marhasova, hanna hlukha, roman kurok, and tetiana kolodizieva (2014) in their research found that the most optimal sources of the resource base of banks are the funds of other banks (bankruptcy rate -5.7%), funds of legal entities (bankruptcy rate -8.0%) and physical funds of individuals (bankruptcy rate 28.5%) were recognized [4]. given the crucial process of protecting banks from bankruptcy in these crises, it is necessary to set specific requirements to ensure their financial stability and further strengthen their resource potential. there are different views on economists’ formation and strengthening of the bank's resource base. kurbanov r. (2021) studied the factors affecting 2 efficiency indicators (roa and interest income) of private banks operating in the republic of uzbekistan [5]. russian scientists shershneva e.g., kondyukova e.s. (2017) learned that the bank's resource base can be realized through the formation of its funds and borrowed funds [6]. in the textbook, "banking", co-authored by azizov u.o., karaliev t.m., and others (2016), the resource base of commercial banks are divided into the bank's funds, equivalent funds, and borrowed funds by type of resources[7]. according to one of our local scientists, professor abdullaeva sh.z., (2019) “the resource base of commercial banks determines the level of its credit potential. the resource base created by the bank can be used to provide various loans and finance investments and other active operations [8]. qurbonov r. (2019) the resource base of private banks is a source of their funds, as well as a condition for their return to the free funds of legal entities and individuals, used to increase opportunities for mobilizing financial resources and expanding the volume of active operations to maintain a high level of competitiveness and a positive image the amount of borrowed and borrowed money [9]. kurbanov r.b. (2020) the analyzed financial performance of private banks in uzbekistan. he argued that the volume of bank assets, asset management ratio and operational efficiency are positively correlated with roa [10]. kurbanov r.b. (2021) is devoted to the formation of the resource base of private banks operating in the republic of uzbekistan [11,12]. donnellan, j., & rutledge, w. l. (2019) analyzed a theoretical and practical insight of rbv on the “what happened” aspect of jpmorgan chase and then discuss their ability to achieve and maintain competitive advantage [13]. ahmed, a., khuwaja, f. m., brohi, n. a., othman, i., & bin, l. (2018). they developed five research proposals based on a relevant review of the relevant literature and assessed the prospects and current state of the banking sector in pakistan [14]. mahmood, n.s. and ahmed, e.m. were examines the mediating effect of risk management practices on the relationship between understanding risk and management in iraqi private banks , risk identification, risk assessment analysis, risk monitoring, credit risk analysis, and financial performance [15]. roy, a. analyzed business segment diversification of private banks in india [16]. american journal of business management, economics and banking volume 36 may2025 p a g e | 3 www.americanjournal.org materials and methods the analysis used the methods of statistical grouping, regression analysis, and correlation. the article examines the regression and correlation analysis period for 10 years (2013-2019) and identifies trends. econometric analysis of multivariate regression and correlation factors was carried out based on data from 6 private banks in the country for 2010-2019. the dynamic panel data uses statistical data from the central bank of the republic of uzbekistan and an open database of private banks. as a result, the resource base of private banks in the country was taken, and the causal factors were the volume of assets of private banks in the country (bank size), the number of branches, long-term interest rates, bank capital, and profitability. by assets. in the econometric analysis of this factor, we tested the variables of the correlation matrix. a multivariate econometric model was formed by selecting the most influential of the selected outcome variables so that the influence of the independent variable with the main effect on the dependent variable is not lost. the mathematical function of this model is presented as follows. 𝒀 = 𝜷𝟎𝒊𝒕 + 𝜷𝟏 ∗ 𝑿𝟏𝒊𝒕 + 𝜷𝟐 ∗ 𝑿𝟐𝒊𝒕 + 𝜷𝟑 ∗ 𝑿𝟑𝒊𝒕 + 𝜷𝟒 ∗ 𝑿𝟒𝒊𝒕 + 𝜷𝟓 ∗ 𝑿𝟓𝒊𝒕 + є𝒊𝒕 (1) 𝑹𝑩𝑷𝑩𝒊,𝒕 = 𝜷𝟎 + 𝜷𝟏 ∗ 𝑷𝒃𝒂𝒔𝒔𝒆𝒕𝒊,𝒕 + 𝜷𝟐 ∗ 𝒃𝒓𝒂𝒏𝒄𝒉𝒊,𝒕 + 𝜷𝟑 ∗ 𝒍𝒐𝒏𝒈 𝒕𝒆𝒓𝒎 𝒄𝒓𝒆𝒅𝒊𝒕 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕𝒊,𝒕 + 𝜷𝟒 ∗ 𝑹𝑶𝑨𝒊,𝒕 + 𝜷𝟓 ∗ 𝑹𝑶𝑬𝒊,𝒕 + є𝒊,𝒕 (2) 𝑹𝑩𝑷𝑩=t is the volume of the resource base of private banks for the period i; 𝛃𝟎=constant, 𝐘intercept; є𝐢,𝐭=amount of error in section i during period t. 𝛃𝟏, 𝛃𝟐, 𝛃𝟑, 𝛃𝟒 ва 𝛃𝟓 are coefficients indicating the rate of change of the resource base relative to the independent variables. 𝑷𝒃𝒂𝒔𝒔𝒆𝒕i,t=i bank volume of private banks in t-year (bank assets) 𝒃𝒓𝒂𝒏𝒄𝒉i,t=inumber of branches of private banks in t-year 𝒍𝒐𝒏𝒈 𝒕𝒆𝒓𝒎 𝒄𝒓𝒆𝒅𝒊𝒕 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕𝐢,𝐭= i average weighted interest rate on long-term loans of banks in tyear; 𝑹𝑶𝑨i,t=return on assets of private banks for the period t; 𝐑𝐎𝐄𝐢,𝐭=capital return of private banks during the period t; where t = 2010-2019 results and discussion despite the above reforms, at present, the resource base and total capital of private banks in the country, the share of the banking sector in total capital remains low. the total resource base of private banks is only 4% of all commercial banks and 5.3% of their funds[17]. when analyzing the resource base of private banks, the study of their composition is of particular importance. american journal of business management, economics and banking volume 36 may2025 p a g e | 4 www.americanjournal.org fig. 1. the structure of the resource base of 6 private banks operating in the republic of uzbekistan (in percent for 2019). as can be seen from the data in figure 1, the main share in the structure of the resource base of private banks in 2019 was 68.3% of customer funds. after that, a large share was taken by their authorized capital and funds of other banks. their share is 11.5 and 7.1 percent, respectively. as of january 1, 2020, the share of non-deposit funds of private banks in the structure of the resource base amounted to 13.7%, the bulk of which were funds from other banks (7.1%). unfortunately, the share of subordinated debt obligations and other loans issued by private banks in the structure of non-deposit operations is very small. the fact that they are equal to 0.3%, respectively, suggests that the additional capital of private banks is not sufficiently formed. it turns out that special attention should be paid to optimizing the structure of the resource base of private banks. the results of the analysis and research show that the majority of private banks have not developed a specific strategic development policy for the short and long term to attract resources. this forces them to spontaneously pursue a deposit policy in the country's financial market. as a result, the deposit resources of some private banks are formed at the expense of relatively unstable funds, and their share remains quite high. in connection with the above, we carried out an econometric analysis to assess the degree of influence of factors affecting the size of the recursive base of private banks. in the first step, the diversity of the data was examined and the raw data were analyzed using descriptive statistics. 68.3 11.5 7.1 4.5 4.1 1.7 1.4 0.7 0.3 0.3 customer accounts share capital due to other banks interbank loan retains earnings reserve capital other liabilities added capital subordinated debt other borrowed funds american journal of business management, economics and banking volume 36 may2025 p a g e | 5 www.americanjournal.org table 1. result of descriptive statistics1 pbrb pbasset branch long-term credit interest rate roa roe median 4162.49 3954.68 24.7 14.59 3.95 24.19 maximum 11031.3 11639.9 29 25.1 4.95 37.26 minimum 638.9 484.2 15 10.5 2.84 14.89 std. deviation 3706.19 3876.67 5.18 5.29 0.69 6.21 the results of descriptive statistics show that the data for each selected variable is usually distributed and used for econometric modeling. then we turn to correlation analysis. in this case, we use pearson's correlation coefficient. we know that pearson's correlation coefficient indicates the degree of interdependence of the dependent and independent variables. table 2. correlation statistics2 pbrb pbasset branch long-term credit interest rate roa roe pbrb 1,000 pbasset 0,998*** 1,000 branch 0,688** 0,668** 1,000 long-term credit interest rate 0,939*** 0,943*** 0,416* 1,000 roa 0,541* 0,555** 0,232* 0,596** 1,000 roe 0,474* 0,485* 0,156* 0,476* 0,818*** 1,000 robust standard errors in parenthesis; all regressions include regional fixed effects ***p <0.01, **p <0.05, *p <0.1 according to the above correlation matrix, the cross-correlation of the independent variables is low, which in turn means that the multicollinearity problem does not arise in our regression analysis. that is, the size of the resource base of private banks has a positive correlation with the volume of assets of private banks in the country (bank size), the number of branches, interest rates on long-term loans, bank capital, and return on assets. this means that as the volume of assets of private banks in the country (bank size), the number of branches, interest rates on long-term loans, the level of return on bank capital and assets increase, their recursive base increases. the next step is the most important step in econometric analysis. this is regression analysis. in doing so, we run a separate regression analysis for each associated variable. 1calculated by the author based on the stata program 2 calculated by the author based on the stata program american journal of business management, economics and banking volume 36 may2025 p a g e | 6 www.americanjournal.org table 3. regression analysis (pbrb)3 independent variables dependent variable: resource base of private banks (pbrb) coef. std. err. t p value (p>|t|) xbasset .42 .16 2.69 0.055 branch 154.50 41.54 3.72 0.020 long-term credit interest rate 313.76 93.52 3.36 0.028 roa -495.75 204.00 -2.43 0.072 roe 53.18 22.86 2.33 0.081 cons -5219.20 1673.67 -3.12 0.036 prob> f 0.0000 r-squared 0.9989 adj r-squared 0.9976 based on the above calculations, the following multifactor regression model was formed. 𝑿𝑩𝑹𝑩 = −𝟓𝟐𝟏𝟗. 𝟐𝟎+. 𝟒𝟐 ∗ 𝐗𝐛𝐚𝐬𝐬𝐞𝐭 + 𝟏𝟓𝟒. 𝟓𝟎 ∗ 𝒃𝒓𝒂𝒏𝒄𝒉 + 𝟑𝟏𝟑. 𝟕𝟔 ∗ 𝑳𝒐𝒏𝒈 𝒕𝒆𝒓𝒎 𝒄𝒓𝒆𝒅𝒊𝒕 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕 − −𝟒𝟗𝟓. 𝟕𝟓 ∗ 𝑹𝑶𝑨 + 𝟓𝟑. 𝟏𝟖 ∗ 𝑹𝑶𝑬 (3) the corrected coefficient of correction in the formed model shows that the coefficient of influence of the volume of bank assets (xbasset) on the number of branches (branches) and the long-term loan interest rate (long credit interest rate), which is a factor influencing the volume of private banks' recursive base (xabr), is 5%. determined at the level of. the ratio of the level of return on capital (roa) and return on assets (roe) of the remaining 2 independent variable banks was determined at the significance level of 7-8%. the probability of the p-value of fisher's f-statistic of the constructed regression model is less than 0.05, and the bank's asset size (xbaktiv) is the number of branches (branches), long-term loan interest rate (long loan interest rate), bank capital return (roe) and asset return. (roa) shows the effect of independent variables on the size of the private banks ’recursion database (nbr), which is considered a related variable. a diagnostic analysis was performed to determine the prognosis of the constructed model and it was found that the variables did not have autocorrelation and heteroskedastic problems. conclusion summing up our econometrically formed model, it should be noted that taking into account other factors, the volume of bank assets amounted to 1 billion. an increase in the recursive base of private banks by 0.42 billion soums, an increase in the number of branches by 1 unit by 154.5 billion soums, an increase in the long-term interest rate of banks by 1%, a returnable base of private banks by 313.76 billion soums and an increase in profitability banking capital by 1% led to an increase in the recursive base of private banks by 53.18 billion soums, and an increase in the profitability of bank assets by 1% increased the recursive base of private banks. for 495.75 billion soums. we see that this leads to a decrease in the amount. 3calculated by the author based on the stata program american journal of business management, economics and banking volume 36 may2025 p a g e | 7 www.americanjournal.org recommendations in the course of our study, along with identifying existing problems in the process of forming the resource base of private banks, we identified ways to ensure the sustainability of the resource base of private banks by overcoming them as much as possible. in our opinion, these are: 1. it is important to constantly increase the share of the authorized capital in the bank's capital. after all, the authorized capital is the most stable part of private capital, along with the retained earnings of the bank. 2. private banks have the opportunity to strengthen the additional capital base by increasing the volume of subordinated debt. the absence of subordinated debt obligations in the practice of private banks indicates the weakness of their positions in the long-term lending market. considering that subordinated debt obligations are the main part of the bank's additional capital structure, as well as a convenient and inexpensive means of attracting long-term resources, it is advisable to expand the practice of attracting subordinated debt obligations by private banks; 3. to strengthen the resource base, private banks should constantly introduce new, modern and attractive long-term deposit services provided by banks to increase the attraction of sustainable resources, taking into account the inflation targeting regime and encouraging these clients to place deposits. back in the bank. the full implementation of the above considerations in the activities of private banks, firstly, will increase their efficiency, and secondly, will have a positive effect on strengthening their resource base and will serve as an economic basis for their sustainable operation. references: 1. tsyhanyuk, d.(2014) effective ways to making strong resource base for ukrainian banks in terms of unstable economy // středoevropskývĕstnĺk pro vĕdu a výzkum. – №7. p. 94-106 https://www.essuir.sumdu.edu.ua/bitstream-download/123456789/52435/7 2. decree of the president of the republic of uzbekistan no. pf-5992 of may 12, 2020 "on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025" 3. decree of the president of the republic of uzbekistan no. pf-4947 of february 7, 2017. on the action strategy for the further development of the republic of uzbekistan // collection of legislation of the republic of uzbekistan. tashkent, 2017. № 6 (766). 32-b. 4. aleksey mints, viktoriyamarhasova, hanna hlukha, roman kurok and tetianakolodizieva // analysis of the stability factors of ukrainian banks during the 2014–2017 systemic crisis using the kohonen self-organizing neural networks. // banks and bank systems, volume 14, issue 3, 2019, 86-98. doi:10.21511/bbs.14(3).2019.08https://www.researchgate.net/publication/ 335670166 5. kurbonov, r. phd (2021) " analysis of efficiency indicators of private banks activity," international finance and accounting: vol. 2021 : iss. 1 , article 11. 6. шершнева е.г., кондюкова е.с. банковский менеджмент: учебное пособие /. — екатеринбург: изд-во урал. ун-та, 2017. — 112 с.. 7. azizov u.o., karaliev t.m.and others. banking textbook -t.: tfi, economics, and finance, 2016. 768 p 8. abdullaeva sh.z., azizov u.o.. banking. textbook. -t.: tfi, economics, and finance, 2019, 168 p. https://www.essuir.sumdu.edu.ua/bitstream%20-download/123456789/52435/7 https://www.researchgate.net/publication/%20335670166 american journal of business management, economics and banking volume 36 may2025 p a g e | 8 www.americanjournal.org 9. qurbonov, r. (2019). theoretical and practical aspects of the formation of private banks’resource base. international finance and accounting, 2019(5), 7. 10. kurbanov r (2020). "analysis of financial performance of private banks in uzbekistan." international journal of psychosocial rehabilitation 24.05 (2020). 11. kurbanov, r. (2020). the practice of strengthening of resource base in private banks. international journal of economics, commerce and management, 8(3), 23485-0386. 12. kurbanov, r. b. (2021). improving the organization of the resource base of private banks of the republic of uzbekistan. saarj journal on banking & insurance research, 10(5), 41-45. 13. donnellan, j., & rutledge, w. l. (2019). a case for resource‐based view and competitive advantage in banking. managerial and decision economics, 40(6), 728-737. 14. ahmed, a., khuwaja, f. m., brohi, n. a., othman, i., & bin, l. (2018). organizational factors and organizational performance: a resource-based view and social exchange theory viewpoint. international journal of academic research in business and social sciences, 8(3), 579-599. 15. mahmood, n.s., ahmed, e.m. mediating effect of risk management practices in iraqi private banks financial performance. j financ serv mark (2022). https://doi.org/10.1057/s41264-02200155-y 16. roy, a. business segment diversification of private banks in india. decision 48, 295–308 (2021). https://doi.org/10.1007/s40622-021-00285-7 17. www.cbu.uzofficial site of the central bank of the republic of uzbekistan. https://doi.org/10.1057/s41264-022-00155-y https://doi.org/10.1057/s41264-022-00155-y https://doi.org/10.1007/s40622-021-00285-7 http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 51 www.americanjournal.org organizing the activities of “mobile brigades” of specialists to provide medical care to children and adolescents, including rural residents yuldasheva f. u. rakhmatillayeva g. a. eshonkhodzhayeva m. o. abdulazizova d. sh. tashkent medical academy a b s t r a c t k e y w o r d s this article reveals questions about the organization of “mobile teams” of medical specialists to provide medical care to children and adolescents, including residents of rural areas, the article contains information about the purpose, objectives and basic principles of providing medical care to children in remote and hard-to-reach areas by mobile pediatric teams. the main directions of activity of mobile teams have been determined. an approximate equipment list is presented. the organizational forms of work of mobile teams with children, parents, the family of a sick child, and the involvement of parents in participating in medical work with their child are presented. the methodological recommendations are intended for health care managers, pediatricians and medical specialists. pediatrician; consulting; autonomy; specialists; medicine; health care; mobile teams; health care; medical specialists; healthcare. introduction during the period of large-scale socio-economic changes of the last decade, the republic of uzbekistan has implemented a wide range of measures aimed at protecting and improving the health of children. this made it possible to maintain basic guarantees for the livelihoods, growth and development of the younger generation, improving the quality and accessibility of medical care, education and social support. unfortunately, the expansion of types and forms of medical, socio-economic support could not reverse the current negative dynamics of health indicators of the country's children's population. adequate assessment of the conditions for the formation of public health, the changing level and structure of the need for medical care, its quality and accessibility, scientific justification for the organization of medical care make it possible to timely resolve issues of improving medical care to the population, including in primary health care settings. currently, the dynamics of indicators characterizing the health status of children cannot be unambiguously defined as negative. a number of indicators continue to deteriorate, some have american journal of business management, economics and banking volume 24 may 2024 p a g e | 52 www.americanjournal.org stabilized, and for some parameters there has been a positive trend. over the past 5-6 years, annually about 40.4% of children are born sick or fall ill during the neonatal period, at least 10% of children are born premature and with low body weight. the overall morbidity rate for children in the first year has relatively stabilized, reaching in 2014 the level of 2545.4 per 1000 children who reached the age of 1 year in a given year. the overall prevalence of health and developmental disorders among children under 14 years of age increased by 31.2%, primary by 34.8%. among children of older adolescence (15-17 years), the increase in rates of general and primary morbidity is even more significant (by 46 and 50.7%, respectively). preserving, strengthening and restoring the health of children with health problems after birth, preventing the chronicization of functional disorders and disability are pressing problems of both society and the state as a whole, and the health care system. the availability of high-quality medical care and the preservation of children’s health are of particular importance, and given the remoteness of some settlements from medical organizations and their partial elimination at the municipal level, the ability of residents to receive highly qualified care using modern medical and diagnostic equipment becomes more limited. therefore, the creation of mobile pediatric medical teams (hereinafter referred to as mobile teams) to work in remote areas is more than necessary and relevant. in solving these issues, mobile teams equipped with all the necessary life support systems and appropriate medical equipment can be successfully used, which can be used in any climatic and geographical conditions, providing comfortable conditions for medical personnel and patients, and modern adequate diagnostic support. due to the geographical, socio-economic characteristics of the regions of uzbekistan, children with chronic pathologies and disabled children do not always have access to medical care due to the absence or significant remoteness of such institutions. in this regard, the role of mobile teams to monitor the health of children with chronic pathologies and disabled children is increasing. the creation of mobile pediatric teams is aimed at increasing the availability of medical care to the children's population in remote areas that do not have the necessary medical organizations, specialist doctors, etc. increasing the availability of medical care to the children's population living in remote and hard-to-reach areas, meeting the needs of patients for high-quality, timely medical care assistance in the early diagnosis of health and developmental disorders, monitoring the growth and development of the child, correction of therapeutic and recreational measures. improving the provision of medical care to children living in remote and hard-to-reach areas of the region. increasing the accessibility and quality of services provided to the children's population, counseling children with chronic pathologies and disabled children. maximum coverage of children with preventive examinations. early detection of health and developmental disorders. as well as the implementation of priority projects in healthcare. medical examination of children, including those in difficult life situations, is also an important task. mobile teams are planned to be used independently or as an additional diagnostic module in collaboration with the receiving medical organization. mobile teams are used to expand the list of medical services provided and increase the capacity of a medical organization for medical examination of children and provision of primary health care (including primary specialized care). mobile pediatric teams equipped with the necessary medical equipment will also be provided with cars. among the advantages of mobile teams are autonomy, high throughput, and rapid deployment american journal of business management, economics and banking volume 24 may 2024 p a g e | 53 www.americanjournal.org for full-fledged work. mobile teams can provide a variety of medical care to the child population, even in the most inaccessible and remote places. mobile teams provide the opportunity for children in small settlements to undergo tests, have a cardiogram, undergo an ultrasound examination and receive detailed advice from doctors of the highest qualifications. also, the treatment and diagnostic capabilities of mobile teams can be used to provide primary health care to children, incl. in the event of emergencies of a natural or man-made nature. to provide assistance to families with disabled children and children with health problems, psychological and pedagogical specialists may be included in the teams. mobile teams are organized mainly on the basis of regional (territorial, republican) children's hospitals. if necessary, specialists from other medical organizations (antenatal clinics, dispensaries, etc.) may be involved. in addition to on-site work, specialists can provide advisory assistance remotely using telecommunication technologies, consult medical documentation, and the results of instrumental studies. it is important to make mobile teams independent (autonomous), and it is also important to have an additional diagnostic module to work on the basis of the receiving medical organization. mobile teams include medical specialists who travel with mobile diagnostic equipment. material and technical equipment and staffing allow us to carry out most laboratory and diagnostic studies: -general blood analysis; -general urine analysis; -blood chemistry; -glycosylated hemoglobin; -immunocap; -electrocardiogram; -function of external respiration; -electroencephalogram; -arteriography; -echo-cardiogram; -ultrasound examination general visualization and individual organs. the departure of mobile teams is carried out using special portable equipment: -device for studying the function of external respiration; arteriograph; portable screening system cardiorespiratory monitoring; bullet oximeter; -diagnostic spirometer; modular neurodiagnostic system; -electrocardiograph 12-channel; diagnostic system for assessing the state of cardiorespiratory function and metabolism; -express analyzer for determining hemoglobin, creatinine, glycated; -automatic hematology analyzer; portable urine analyzer; -portable analyzer for determining the level of glucose and cholesterol in capillary blood; portable analyzer of biochemical blood parameters; -algorefractometer; american journal of business management, economics and banking volume 24 may 2024 p a g e | 54 www.americanjournal.org portable diagnostic ultrasound system with accessories; -computer psychometric battery; -mobile treatment and prophylactic complex; plantographic computer complex; -diagnostic center for otorhinophthalmoscopy; -sterile vacuum systems for collecting venous blood. specialists who will be included in the mobile teams: -pediatrician; otorhinolaryngologist; -ophthalmologist; -neurologist; pediatric surgeon; -traumatologist-orthopedist; -dermatologist-allergist; -cardiologist; -gastroenterologist; -urologist-andrologist; pediatric endocrinologist; -dermatovenerologist, -pulmonologist; -nephrologist; pediatric dentist; -orthodontist; other specialists according to indications; the list of specialists included in the mobile teams is determined taking into account regional characteristics, the level and structure of morbidity among the child population, the assigned tasks and the planned volume of medical care. the material equipment of mobile teams is carried out from the current availability of medicines and medical equipment of the institution on the basis of which the mobile teams are formed. medical equipment is subject to annual inspection for serviceability. in accordance with the equipment list, a reserve of medicines, medical equipment, medical instruments and medical and auxiliary items is created. responsible persons for storage and compliance with deadlines for the sale of property are appointed by order of the chief physician of the regional (territorial, republican) children's hospital. those responsible for creating a reserve carry out storage of medicines, checking the serviceability of medical equipment, carrying out preventive maintenance and repairs. mobile teams can be specialized or multidisciplinary. the profile of the teams is determined by the health status of the child population of the specified areas, the availability of personnel, the environmental situation, etc. mobile teams are staffed with the most experienced and highly qualified specialists in accordance with the established staff and the profile of the mobile team. mobile specialized teams are staffed depending on the real capabilities of the regional medical organization in the following medical specialties: pediatric; traumatological; american journal of business management, economics and banking volume 24 may 2024 p a g e | 55 www.americanjournal.org children's surgical; infectious; ophthalmological; otorhinolaryngological; -urological; laboratory diagnostic, etc. mobile teams are formed mainly on the basis of regional (territorial, republican, city) children's hospitals. conclusion. the creation of mobile pediatric teams will ensure a forecast of the health status of all age groups of the child population, regardless of place of residence, the availability and quality of medical care for children in remote and hard-to-reach areas, the organization of medical care, including medical examinations for children in difficult life situations, counseling on the preservation and strengthening of the health of children and families, including recommendations for correcting nutrition, physical activity, physical education and sports, sleep patterns, living conditions, study and recreation, and also providing methodological assistance to medical workers of municipal medical organizations. references 1. юлдашева ф.у. socio-hygienic study of the health of children born with high weight. international scientific journal isj &applied scince philadelphia, usa issue 11 volume 67 published november 30, 2018.. 2. юлдашева ф.у. & каримбаев, ш.д.совершенствование объективности оценки качества знаний студентов. 2014. 3. юлдашева ф.у., & тошматова, г.а. оказание медико-социальной помощи населению. журнал современная наука актуальные вопросы социально экономического развития. 2023;153-164. (in russ.). 4. шеркузиева, г. ф., саломова, ф. и., юлдашева, ф. у. токсичность “еp мaлхaми” при ингаляционном хроническом воздействии.материалы iv международной научнопрактической конференции «современное состояние фармацевтической отрасли: проблемы и перспективы. ташкент.2023; 287. 5. sherkuzieva, g. f., salomova, f. i. yuldasheva, f. u. oziq ovqat qo’shimchalari va aholisalomat ligi.2023. «o‘zbekistonda vinochilik va sanoat uzumchiligi sohasining muammolari va ularning innovatsion yechimlari» respublika ilmiy-texnikaviy konferensiya ilmiy ishlar to ‘plami.2023;101102 6. шеркузиева г.ф., саломова, ф.и., юлдашева ф.у. результаты санитарнохимических исследований воды. международный научно-образовательный электронный журнал «образование и наука в xxi веке». 2023;35(2). 7. юлдашева ф.у. факторы риска развития злокачественных новообразований у детей. сборник научных трудов республиканской научно-практической конференции “профилактическая медицина: гигиеническая наука и практика”ташкент.2015; 87-89. 8. юлдашева ф.у., impact of cov.id-19 on education system in the world and in uzbekistan. in образование: прошлое, настоящее и будущее. 2020; 94-95). 9. юлдашева ф.у. organization of work universities during the covid 19 pandemic. international conference, san francisco, california, usa. 2020; american journal of business management, economics and banking volume 24 may 2024 p a g e | 56 www.americanjournal.org 10. юлдашева, ф. у., & имамова, а. о. роль спорта в формировании здорового образа жизни у молодежи. европейский международный журнал междисциплинарных исследований и управленческих исследований.2022; 2(11): 85-89. 11.юлдашева ф. у. совершенствование системы профилактических санитарнопротивоэпидемических мероприятий на железнодорожном транспорте в условиях пандемии covid19. материалы международной научно-практической онлайн конференции «коронавирусная инфекция: диагностика, лечение профилактика», посвященной году «поддержки молодёжи и укрепления здоровья населения» фергана 18 март 2021г. стр. 102106. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 29 www.americanjournal.org current issues of digitalization of the process of lending individuals abdunazarov shahrukh akrom ugli “independent researcher of the tashkent city branch of the russian university of economics named after g.v. plekhanov”, phd. е-mail: shohrux_0507@mail.ru orcid: 0000-0002-1767-3709 a b s t r a c t k e y w o r d s this article analyzes the importance of digitization in the process of crediting individuals and its role in the modern banking system. today, digital technologies are an important factor in automating banking services, increasing service speed, and creating convenience for clients. also, the article considers the main problems of the digitalization of the lending process, in particular, issues of information security, digital inclusion, and infrastructure improvement. at the same time, foreign experiences will be analyzed, and proposals will be made to improve digital lending mechanisms in the banking system of uzbekistan. lending, individuals, banking system, information security, digital technologies. introduction digitization of the process of crediting natural persons in uzbekistan is gaining importance today. by introducing digital technologies, it is possible to increase the efficiency of banking services, create convenience for clients and make financial processes transparent. in the “uzbekistan-2030” strategy, adopted on september 11, 2023, special attention is paid to the development of the digital economy, and in this regard, the digitization of the banking system is also set as one of the priorities[1]. according to the central bank, in the first 9 months of 2021, the volume of problem loans of individuals increased by 5.4 times and amounted to 5.2 trillion soums[2]. these figures demonstrate the need to reduce risks and improve the quality of the loan portfolio by digitizing the lending process. also, decision no. 3492, adopted on january 23, 2024, establishes the procedure for banks and nonbank credit organizations to grant loans to individuals in foreign currency, and this is an important step aimed at improving the lending process through digital technologies[3]. american journal of business management, economics and banking volume 33 february 2025 p a g e | 30 www.americanjournal.org literature review digitization of the lending process is the process of automating, optimizing, and more effectively organizing the lending, repayment, and monitoring processes in banks and financial organizations based on digital technologies. through digitization, it is possible to increase the speed and quality of banking services, reduce costs, and create convenient conditions for clients. this process is especially important in the field of lending to individuals. the decree of the president of the republic of uzbekistan no. pf-5953 dated march 2, 2020 pays special attention to the development of the digital economy, and in this regard, the digitization of the banking system is set as one of the important tasks. by introducing digital technologies, it is possible to increase the efficiency of banking services, create convenience for clients, and make financial processes transparent [4]. according to the results of the 2020 “analysis of islamic financing instruments in uzbekistan” study, 38% of private entrepreneurs and 56% of individuals reported that they do not use loans from traditional banks. at the same time, most of them expressed interest in islamic financial services. these numbers show the possibility of reaching a wider audience through the digitization of islamic financing [5]. khusanova zulfia rakhmatullaevna studied the mechanisms of support and development of women's entrepreneurship in her research. in his opinion, digital technologies are of great importance in increasing the economic activity of women, simplifying the process of crediting them, and improving their access to financial resources [6]. economists e.muminova and u.khamdamova have analyzed the prospects for the introduction of blockchain technologies in their articles, emphasizing the importance of digital technologies in the economy. in their opinion, such technologies will serve to make the lending process more transparent and efficient [7]. the above studies clearly demonstrate the relevance of digitizing the lending process for individuals and its importance in the banking system. the introduction of digital technologies can make the lending process more efficient and transparent, create convenience for customers, and expand the scope of financial services. research methodology foreign and domestic experiences in digitizing the process of lending to individuals were analyzed theoretically and practically. also, the article effectively used methods such as comparison, scientifictheoretical comparison, observation, comparative economic analysis, systematic approach, and logical approach. analysis and results the need to digitize the lending process is explained by the current state of the uzbek banking system and efforts to increase its competitiveness. one of the main tasks of the banking system in the country is to provide financial services to the broad segments of the population and to simplify the lending process. from this point of view, digitization is important not only for banks but also for customers. these important aspects can be seen through: the first important aspect is to increase the speed and efficiency of banking services. in traditional banks, the process of granting and presenting loans requires a lot of time and resources. digitization american journal of business management, economics and banking volume 33 february 2025 p a g e | 31 www.americanjournal.org automates these processes and makes it possible to provide quick and cheap services. for example, the process of crediting through digital platforms can be done in a few hours rather than in a few days; the second important aspect is to reduce costs in the crediting process. through digital technologies, it is possible to shorten the bureaucratic processes and significantly reduce the operational costs of the bank. this, in turn, provides an opportunity to reduce interest rates for clients; the third important aspect is to expand the possibilities of using financial services. it may be difficult for people living in rural and remote areas to use banking services. digital platforms bring them closer to banking services through the internet; the fourth important aspect is information security and fraud prevention. the use of modern cryptographic technologies in the digitization process ensures the confidentiality and security of data. the results of analyses and studies show that the main share of loans granted to individuals in developed and developing countries is carried out on the basis of digital technologies. the table below provides information on this. table 1 the share of digital technologies used in crediting individuals in some countries in 2019-2024 [15, 16, 17, 18, 19] country share basic technologies growth rate (annual) usa 65% ai-based credit assessment, blockchain, mobile app 15% china 75% big data analysis, mobile payment platforms, blockchain 20% india 70% ai credit systems, upi platforms, digital wallets 25% great britain 60% open banking api, ai credit check, mobile addon 12% germany 55% ai credit analysis, digital id systems, blockchain 10% it is clear from this table that in 2019-2024, china has the highest share (75%) in the use of digital technologies in the process of crediting individuals, and it widely uses big data analysis and mobile payment platforms as the main technologies. india is in second place with a 70% share, with ai credit systems and upi platforms being the leading technologies. the usa, great britain, and germany are also achieving high efficiency in this process, in which technologies such as ai-based credit assessment and blockchain are widely used. among the countries, the growth rates are the highest in india (25%), which is explained by the expansion of the digital infrastructure and the activation of innovations. the rate of growth in the usa and germany is relatively low (15% and 10%), which is due to the high level of saturation in their markets. the table shows that the effective use of digital technologies is essential for accelerating the lending process and ensuring its transparency. american journal of business management, economics and banking volume 33 february 2025 p a g e | 32 www.americanjournal.org table 2 the share of digital technologies used in crediting individuals in some cis countries in 2019-2024 [8, 9, 10, 11, 12, 14] country share basic technologies growth rate (annual) russia 55% ai-based credit assessment, mobile app, blockchain 12% kazakhstan 45% mobile banking services, digital id, big data analysis 10% uzbekistan 30% mobile application, electronic payment systems, credit platforms 15% kyrgyzstan 25% mobile application, electronic wallets, credit history analysis 8% it can be seen from the table that in 2019-2024, russia and kazakhstan are leading among the cis countries in the process of crediting individuals through digital technologies. although this process has a relatively low share in uzbekistan, the 15% annual growth rate shows that the development of digital lending in the country is accelerating. current state programs, modernization of banking infrastructure, and expansion of electronic payment systems are seen as decisive factors. the development of digital technologies in uzbekistan provides wider access to financial services and has a positive impact on various sectors of the economy. this, in turn, will help increase financial inclusion in the country and strengthen the competitiveness of banking services. therefore, the digitization of the lending process plays an important role in increasing the efficiency and stability of the banking system of uzbekistan, in creating convenience for clients, and in economic development. this process gives banks an opportunity to increase their competitiveness and contributes to the expansion of financial inclusion in the country. also, through digitization, banking services will be adapted to global standards, which will create more opportunities for attracting investments on an international scale. there are a number of problematic situations in the digitization process of crediting individuals in uzbekistan and the world, which limit the effective and complete implementation of this process. these problems are related to technological, economic, legal, and human factors. below we will try to present the main problems. the first problem is insufficient technological infrastructure. although great attention is being paid to the digitalization process in uzbekistan, the territorial coverage of the internet network is still limited. internet speed is low in rural areas, which limits the possibility of effective use of digital platforms. according to 2020 data, only 56 percent of the population of uzbekistan had access to the internet. also, high internet prices and limited technical services reduce the level of use of digital platforms by the population [13]. the second problem is the lack of technological resources in banks and financial institutions. the digitization process requires expensive software, high-powered servers, and security systems. big investments will be needed to introduce such technologies. however, many banks do not have the opportunity to make such investments. for example, as of the end of the 9th month of 2024, some commercial banks in uzbekistan are not able to allocate the necessary funds for digitization due to a slight decrease in their net profit [14]. the third problem is the increase of information security and cyber threats. in the process of american journal of business management, economics and banking volume 33 february 2025 p a g e | 33 www.americanjournal.org digitization, the storage of data in digital systems increases the vulnerability against cyber attacks. for example, in 2023, more than 11.2 million cyber attacks were carried out on web resources in uzbekistan. this situation reduces customer trust in digital platforms and increases the risk of fraud. also, cyber attacks cause huge financial losses for banks and financial institutions. the fourth problem is the weakness of the legal framework. in uzbekistan, the relevant legal framework for the use of digital platforms and blockchain technologies has not yet been fully formed. the lack of clear legislation on information security, personal data protection, and digital contracts slows down the transition of banks to digital technologies. although the “digital uzbekistan – 2030” strategy has been adopted, further improvement of the legal framework is required for its full implementation. the fifth problem is the low digital literacy of the population. many citizens do not have the skills to use digital platforms. in particular, the population in rural areas does not have enough information about the internet and digital financial services. this reduces their interest in the digital lending process and prevents them from fully using the services. the sixth problem is financial inclusion problems. in order to effectively use digital technologies, everyone should have the same access to credit. however, some population groups in uzbekistan, including low-income and remote areas, are unable to fully benefit from financial inclusion. this limits the possibilities of digital lending. the seventh problem is difficulties in introducing blockchain technologies. high-level it infrastructure and specialists are required to implement the blockchain system. the lack of skilled personnel in the field of it in uzbekistan is slowing down the process of introducing blockchain technology. at the same time, the high price of the technology limits its implementation for many banks [20]. a complex approach is required to solve these problems. it is possible to fully implement the digitalization process by improving the technological infrastructure, increasing the digital literacy of the population, improving the legislation, and ensuring cybersecurity. in addition, it is necessary to strengthen cooperation between the public and private sectors, train personnel in the field of it, and attract investments. these measures will help to increase the efficiency of the use of digital technologies and radically improve the process of crediting individuals. conclusion based on the research and studies carried out within the scope of the digitization of the crediting process of natural persons, we managed to form the following conclusions: digitization of the lending process is important in increasing the competitiveness of the banking system of uzbekistan and creating opportunities for wide use of financial services. this process helps to make banking services fast and efficient, creates convenient conditions for clients, and allows for the reduction of the bank's operational costs; world experience shows that digital technologies have taken the main place in the lending process in developed and developing countries. for example, in china and india, 70-75% of the lending process is carried out through digital platforms, which is considered an important factor in increasing the efficiency of banking activities; in uzbekistan, the digital lending system is in the process of development, and its share is currently 30%. at the same time, the 15% annual growth rate shows the development of the digital infrastructure in the country. it is possible to increase this share through the wider introduction of electronic payment american journal of business management, economics and banking volume 33 february 2025 p a g e | 34 www.americanjournal.org systems and mobile banking services; to accelerate the process of digitization, it is necessary to increase the digital literacy of the population and strengthen financial inclusion. currently, the low-income population and citizens living in remote areas cannot fully use digital crediting opportunities. by solving these issues, it is possible to expand the coverage of digital services in the banking system and further develop the economy. in short, the digitization of the crediting process will increase the competitiveness of the banking system of uzbekistan, make financial services faster and more efficient, reduce operational costs, provide the opportunity for crediting to wide segments of the population, reduce the level of poverty in society, and further improve the standard of living of the population. references 1. president of the republic of uzbekistan. (2023). "uzbekistan 2030" strategy. lex.uz. 2. central bank of the republic of uzbekistan. (2021). "the volume of loans has increased 5.4 times". gazeta.uz. 3. president of the republic of uzbekistan. (2024). resolution no. 3492 new procedures for banks and non-bank credit organizations. lex.uz. 4. decree of the president of the republic of uzbekistan dated march 2, 2020 no. pf-5953. (https://adu.uz/fayl/2020/05/) 5. results of the research "analysis of islamic financing tools in uzbekistan". (https://bfa.uz/files) 6. khusanova zulfia rahmatullaevna. "mechanisms for supporting and developing women's entrepreneurship". (https://adu.uz/fayl/2020/05) 7. muminova e.a. and khamdamova u.o. "prospects of using blockchain technologies in the digitization of the innovative economy". (https://adu.uz/fayl/2020/05) 8. russia: central bank of russia report on digitalization of banking services in russia. www.cbr.ru 9. kazakhstan: national bank of kazakhstan introduction of financial inclusion and digital technologies in kazakhstan. www.nationalbank.kz 10. uzbekistan: central bank of the republic of uzbekistan annual reports on lending and digital banking services. www.cbu.uz 11. kyrgyzstan: national bank of kyrgyzstan development of digital financial services in kyrgyzstan. www.nbkr.kg 12. world bank: reports on financial inclusion in the cis region. www.worldbank.org 13. ministry of development of information technologies and communications of the republic of uzbekistan. "information about internet coverage and its development in uzbekistan". www.mitc.uz (2020). 14. central bank of the republic of uzbekistan. "report on financial indicators of commercial banks". www.cbu.uz (2024). 15. world bank: reports on the development of digital financial services. www.worldbank.org 16. mckinsey & company: research on the role of fintech and digital technologies in the field of lending. www.mckinsey.com 17. deloitte insights: the development of digital financial services and its impact on the banking system. www.deloitte.com american journal of business management, economics and banking volume 33 february 2025 p a g e | 35 www.americanjournal.org 18. pwc (pricewaterhousecoopers): report on the use of digital technologies in the lending process. www.pwc.com 19. statista: volume and growth rates of digital lending in the world market. www.statista.com 20. deloitte. "blockchain in banking: key challenges and solutions". www.deloitte.com (2023). american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 21 www.americanjournal.org gastronomic tourism and its contribution to the regional tourism market vafoxodjayeva dilafruz rahmatulloevna email: dilyatimson@mail.ru a b s t r a c t k e y w o r d s there is a chance to support the local economy, sociocultural, and environmental preservation through gastronomy tourism. the purpose of this study was to look at the gastronomy tourist industry in touristic regions and how it contributes to the regional tourism market. the potential phenomena in uzbekistan's gastronomic tourism development, particularly in tourist areas, is the reason this topic was selected. triangulation data collecting was used in conjunction with qualitative methodologies to conduct the study. with the assistance of the local administration, the food sector, tourists interested in gastronomy, and the community. the results were produced using the anova data analysis approach and the flow model analysis technique. gastronomic tourism, tourism contribution, touristic region, gastronomic tourist, regional tourism, tourism market. introduction globally, the food sector has recently been marked by a significant shift in the public's perception of food. the market is changing due to a new, growing demand for well-being and increased interest in the ideas of sustainability and the preservation of cultural and ecological variety (corvo, 2015). it is establishing a new horizon for tourism centered on the discovery of traditional food and rural communities, opening up new markets for traditional and local goods (garibaldi, 2018). gastronomy is a significant aspect in tourists' assessments of a destination's appeal in addition to the usual elements like climate, accommodations, and landscape. a visitor can wish to travel to a place to engage in some new cultural experiences, or they might simply want to taste the regional cuisine and flavors. as a result, factors like experiencing local cuisine, seeing how a dish is created, and tasting a meal that uses a unique ingredient only found in that place have started to rank highly among the key factors influencing visitors' preferences for travel destinations. additionally, this will support the sustainability of local resources and the development of alternative tourism facilities in areas where food culture is becoming more prevalent (yuncu, 2010). nowadays, gastronomy is thought to have a significant role in luring travelers and influencing their destination decisions. gastronomic tourism may develop into a distinct kind of travel unto itself, as well as a source of revenue for sun and sea resorts (shenoy, 2005; kivela & crotts, 2006; ulusoy, 2008). the greek words "gaster" (stomach) and "nomas" were combined to create the word "gastronomy" (law). however, rather than only using american journal of business management, economics and banking volume 24 may 2024 p a g e | 22 www.americanjournal.org its dictionary definition, it is more helpful and significant to understand what it implies and encompasses (altnel, 2014). although "gastronomy" is often referred to as the "art of eating and drinking," it is actually a branch of art and science that is closely related to chemistry, literature, biology, geology, history, music, philosophy, psychology, sociology, and other fields as well as to medicine, nutrition, agriculture, and other fields (kivela & crotts, 2006). as the topic is food and drink, it covers topics like nutritional sciences, wine production, the physiology of taste, the functions of nutritional components in the body, identifying qualities in food selection, and creating production processes that adhere to sanitation and hygiene standards to prevent food from going bad physically, chemically, or biologically (shenoy, 2005). the goal of gastronomy is to maintain human health by ensuring the best nutrition possible and ensuring enjoyment of life and eating; among the study topics of gastronomy are the production of food and beverages in hygienic environments and their preparation for consumption in a way that will address to palatal and visual pleasure. the fact that tourism is one of the most significant economic sectors and leisure time activities in the modern world and that it may both directly and indirectly activate numerous sub-sectors makes it an ideal development tool (cagl, 2012). as individuals spend money to satisfy their requirements while traveling, tourism plays a driving role in the growth of societies and is a source of income for those who provide services. the duty to produce and provide more products and services rises as people's requirements do, which boosts societal productivity, investment, and income (akgoz, 2003). the study argues that greater use of local food in the region’s tourism economy offers a means of strengthening the regional tourism product, and at the same time, may also contribute to the district’s development in tourism. literature review: special interest tourism has grown in popularity as an alternative to mainstream tourism in the early twenty-first century. while natural resources such as sun, sea, and sand have historically been key tourist attractions, food has evolved as a cultural draw at tourism locations in the last two decades (hsu, 2014). food is viewed as an important aspect of the tourism experience, giving travelers with a window into a destination's local culture. the literature clearly shows a link between food and tourism, which is described in a variety of words such as "cuisine tourism," "culinary tourism," "gastronomy tourism," and "food tourism" (ignatov and smith, 2006; karim and chi, 2010). the emphasis on cooking methods alone does not capture the entirety of food's significance as a tourist attraction. gastronomy tourism is regarded to be wider than culinary tourism since gastronomy refers to "the art or science of good eating" (gillespie, 2001). this phrase has evolved from studies of the link between culture and cuisine since the early 18th century, but it refers to persons who not only love to eat and drink excessively, but also know a lot about food and wine. they are referred to as "gourmet" or "gourmand" (getz, 2014). finally, "culinary" refers to the social and cultural framework in which food and beverage are made, as well as food preparation and consumption methods. the phrase "culinary tourism" is a suitable option, however it has been used in both food tourism and beverage tourism (wine tourism, beer tourism, coffee tourism, tea tourism, whisky tourism) (getz, 2014). ignatov and smith (2006) also defined culinary tourism as "tourism trips during which the purchase or consumption of regional foods (including beverages), or the observation and study of food production (from agriculture to cooking schools) represent a significant motivation or activity". as a result, the word "food tourism" is adopted in this study to make it basic, focused, american journal of business management, economics and banking volume 24 may 2024 p a g e | 23 www.americanjournal.org and comprehensive, and to prevent any prejudice connected with other terminology. the phrase "culinary tourism" is a suitable option, however it has been used in both food tourism and beverage tourism (wine tourism, beer tourism, coffee tourism, tea tourism, whisky tourism) (getz, 2014). ignatov and smith (2006) also defined culinary tourism as "tourism trips during which the purchase or consumption of regional foods (including beverages), or the observation and study of food production (from agriculture to cooking schools) represent a significant motivation or activity". as a result, the word "food tourism" is adopted in this study to make it basic, focused, and comprehensive, and to prevent any prejudice connected with other terminology. methodology: the study on the motivation of tourists to choose gastronomy tourism was qualitative research by studying and collecting data from document research and interview research. this section will introduce the methodology of the study, study area and data collection, and data analyses as well. the purpose of this study is to add to the research on gastronomy experiences in tourism. its major goal is to examine passengers' interests and motives regarding the indigenous gastronomy of uzbekistan throughout their journey. to understand gourmet tourism, it is vital to investigate why people go to restaurants to meet their basic wants, as defined by maslow's pyramid of needs. the main notion is that, while all travelers consume food out of need, their gastronomic preferences and reasons might vary greatly. (2004). travelers may be interested in local food and obtaining dining experiences, which means that culinary expectations may play a part in deciding which place to visit (lópezguzmán, 2017). according to (fields, 2020), four types of culinary incentives related to tourism may be identified: physical, cultural, interpersonal, and status and prestige. physical motivations stem from people's need to eat; cultural motivations stem from a desire to better understand a specific geographic area or culture; interpersonal motivations are responses to social functions that involve interaction with other people, and status and prestige motivations stem from the desire for social distinction. result and discussion: gastronomic tourism known as travel tourists are inquisitive and eager to explore the local cuisine of a destination that they are visiting since the food experience can be added to the whole travel experience at a minimal cost and effort. the memory of the place is taken back by the tourists not only through the local sightseeing but also through the taste of the food. john who is from france mentioned that his motivation that my motive for traveling is to try new traditional cuisines, wines, and cultures, as well as to discover new areas and meet attractive people. i enjoy being in an unusual environment and learning about its history and culture and he prefers to eat plof, somsa, bbq, and bread. motivation of the alice who is aged 28 is i have a long list of locations i want to visit all around the world. i'd like to go to those locations before i die. make a list of sites you wish to see and then visit them, crossing them off the list as you go she prefers plof with a huge portion of meat, and lagman with an oily texture and little green on the side. followed by dave who is from russia stated that it's a fantastic opportunity to learn about various cultures, meet new people, and interact with individuals from all around the world. i enjoy the variety of sights, sounds, and local cuisine that come with visiting a new place. meeting new people, learning about their lives, and exchanging tales is the nicest part of traveling for me. every trip experience i have reminds me how small our globe is american journal of business management, economics and banking volume 24 may 2024 p a g e | 24 www.americanjournal.org and frequently gives me a deeper love and respect for folks i would never have met otherwise mostly he chooses to eat qazan kabab because everything mixes there, potato plus meat steamed well and it's very soft and chewy. other respondents also highlighted similar motivations and each has a desire to taste traditional cuisines while they are traveling they also mention feverous dishes like plof, manti, samsa, bbq, fried lagman and lagman soup, shurpa cooked traditionally. in today's competitive marketing environment, marketing destinations are a complicated phenomenon with numerous obstacles and diverse aims and expectations; and local cuisines are unique sources to create, launch, and advertise a destination (uner, 2014). tourists visiting a site should be immersed in regional culture in all areas when it is recognized that gourmet tourism is a necessary and reflective element of creating and marketing a destination. gastronomic tourism activities carried out at a place give direct and indirect employment as well as financial benefits (sahin, 2015). based on interview analyses most of the respondents regardless of country, some of the tastiest foods guests have tasted have come from folks with the most modest mentality. there are regions in uzbekistan where the most primitive people produce the greatest food. of certainly, some traditional cuisines will motivate them to return to uzbekistan again. bierman (2003) described a tourism destination as a country, state, region, city, or town that is promoted or offers itself as a location for visitors to visit. an appealing tourism site consists of six components: attractions, amenities, accessibility, image, pricing, and human resources. at this point, visitor behavior has received the greatest attention from food tourism researchers, with many studies focusing on three key perspectives: tourist behavior intention, tourist satisfaction, and tourist motivation toward consuming local/traditional cuisine. several authors used social psychology to study the first point of view. food contributes a vital part of a country's culture, and while on holiday, travelers want to try out the local cuisines of the place, so the tourism industry as a whole is going to keep expanding and food tourism will flourish as well, as travelers want greater experiences and to understand the local culture of places. most of the respondents highlight their motivation consists of food taste or local cuisine experiences. the memory of the place is taken back by the tourists not only through the local sightseeing but also through the taste of the food. motivation has been identified as one of the most significant variables driving various food consumption behaviors. steptoe's food choice questionnaire (fcq) is one of the most prominent and well-known taxonomies (1995). conclusion: these themes suggest that food tourism is emerging as a global phenomenon with substantial implications for destinations. through efficient and successful marketing and development techniques, destinations support considerable expansion of food tourism, which has become one of the most active components of their tourist industry. foodies and food tourists must thus be considered in the design, development, and marketing of food tourism. previous study concentrated mainly on local food consumption or consumer behavior toward food items or services. finally, representatives of the company make agreements on the significance of developing collaboration tools amongst all players in the value chain of culinary tourism at the local level, both in the conceptualization as well as in the development of product offers and promotion. american journal of business management, economics and banking volume 24 may 2024 p a g e | 25 www.americanjournal.org references: 1. aktürk, h. (2021). the evaluation of studies about gastronomy tourism. journal of tourism intelligence and smartness, 1-28. 2. dalila, t. (2021). the study about gastronomic tourism. social and economic aspects of education in modern society, 1-5. 3. hussin1, h. (2018). gastronomy, tourism, and the soft power of malaysia. creative commons cc by, 1-11. 4. jong, a. d. (2018). gastronomy tourism: an interdisciplinary literature. journal of gastronomy and tourism, 1-16. 5. kivela, j. (2006). tourism and gastranomy. journal of hospitality & tourism research, 1-25. 6. kivela, j. (2014). gastronomy tourism. culinary science & technology, 1-19. 7. meneguela, c. r. (2018). the role of a high-quality restaurant in stimulating the creation and development of gastronomy tourism. international journal of hospitality management, 1-9. 8. payandeh, e. (2020). principles toward gastronomy tourism. journal of culinary science & technology, 1-21. 9. sormaza, u. (2015). gastronomy in tourism. procedia economics and finance, 1-6. 10. arvola, a., lähteenmäki, l., & tuorila, h. (1999). predicting the intent to purchase unfamiliar and familiar cheeses: the effects of attitudes, expected liking and food neophobia. appetite, 32(1), 113-126. 11. booth, d.a., & shepherd, r. (1988). sensory influences on food acceptance: the neglected approach to nutrition promotion. british nutrition foundation nutrition bulletin, 13(39-54). 12. bourdieu, p. (1984). distinction: a social critique of the judgement of taste. cambridge, ma: harvard university press. 13. bourdieu, p., & wacquant, l. (1992). an invitation to reflexive sociology. chicago: university of chicago press. 14. chang, k.c. (1977). food in chinese culture: anthropological and historical perspectives. new haven: yale university press. american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 29 www.americanjournal.org development of blockchain technologies: from cryptocurrencies to decentralized applications ulasheva shakhlo tagaevna senior lecturer faculty of sit, karshinsky branch tashkent university of it karshi, republic of uzbekistan abraev azamat kamoliddinovich assistant faculty of sit, karshinsky branch tashkent university of it karshi, republic of uzbekistan khuzhamurotova mashhura gairat kizi math teacher school number 25 in kasbi area karshi, republic of uzbekistan a b s t r a c t k e y w o r d s blockchain technology was initially linked to the rise of cryptocurrencies such as bitcoin, which was introduced in 2009. since then, however, blockchain has evolved to become the basis for many decentralized applications (dapps). in this article, we look at how blockchain technologies have developed, what opportunities they provide today and what prospects await them in the future. blockchain, ethereum, decentralization, cryptocurrency, cryptography. introduction initial idea and creation of bitcoin the blockchain concept was first proposed in 2008 in a paper titled "bitcoin: a peer-to-peer electronic money system" (satoshi nakamoto, 2008). bitcoin uses a decentralized network to secure transactions without the need for a trusted third party such as a bank. blockchain, which is the basis of bitcoin, is a chain of blocks, each of which contains a list of transactions. ethereum and smart contracts with the advent of ethereum in 2015, blockchain technologies received a new impetus for development. ethereum introduced the concept of smart contracts that allow you to create programmable and self-executing contracts. this opened the door to building decentralized applications (dapps) that can run on blockchain. american journal of business management, economics and banking volume 28 september 2024 p a g e | 30 www.americanjournal.org the main components of blockchain technologies decentralization one of the key features of blockchain is decentralization. unlike traditional centralized systems, blockchain does not have a single control center. all network participants (nodes) support and check data blocks, which makes the system more resistant to attacks and failures. transparency and immutability blockchain provides transparency of all transactions, since each block of data is associated with the previous block and is available for viewing by all network participants. this creates an unchanged transaction history that cannot be changed or deleted. cryptographic protection each block in the blockchain is protected using cryptographic algorithms, which ensures the security and authenticity of the data. this makes blockchain a reliable basis for storing and transmitting information. application of blockchain technologies cryptocurrencies the most well-known uses of blockchain technologies are cryptocurrencies such as bitcoin and ethereum. they provide decentralized means of value exchange and storage that are independent of traditional financial institutions. financial services blockchain also finds application in traditional financial services such as interbank transfers, securities trading and asset management. blockchain allows you to speed up and reduce the cost of financial transactions, as well as increase their transparency and security. smart contracts and decentralized applications (dapps) blockchain-based smart contracts have opened up new opportunities for automating and simplifying various processes. decentralized applications (dapps) can be used in a variety of areas, from supply chain management to voting and social media. supply chain management blockchain can provide transparency and traceability at all stages of the supply chain. this allows you to improve inventory management, prevent fraud and increase trust between chain members. health care in healthcare, blockchain can be used to securely store and share medical data, improving patient care and reducing the risks of sensitive information leaks. american journal of business management, economics and banking volume 28 september 2024 p a g e | 31 www.americanjournal.org public administration government agencies can use blockchain to manage citizen identification, conduct elections, issue licenses and other administrative processes. this allows you to increase transparency and reduce corruption. challenges and problems of blockchain technologies scalability one of the main challenges for blockchain is its scalability. as the number of users and transactions increases, the network may face performance issues. various approaches are being developed to address this, such as sharding and secondary networks (e.g., lightning network). energy consumption blockchain networks like bitcoin require significant computing resources to secure and process transactions. this leads to high levels of energy consumption, raising concerns about the environmental impact. regulation with the increasing use of blockchain and cryptocurrencies comes regulatory and legal issues. states and international organizations should develop appropriate rules to ensure the safety and protection of user rights. prospects for the development of blockchain technologies interoperability one of the directions of blockchain development is to create solutions to ensure interoperability between different blockchain networks. this will allow data exchange and transactions between different blockchains, which will increase their usefulness and functionality. private and hybrid blockchains the development of private and hybrid blockchains provides opportunities for the corporate use of blockchain technologies. such solutions allow companies to take advantage of blockchain while maintaining control over access and data privacy. development of decentralized finance (defi) decentralized financial applications (defi) are becoming increasingly popular, giving users access to financial services without the need for traditional banks. defi includes services such as lending, insurance and cryptocurrency exchanges. conclusion blockchain technology has come a long way since the advent of bitcoin and continues to evolve, opening up new opportunities for various industries. from cryptocurrencies to decentralized applications, blockchain offers solutions that can transform the way we think about business, finance and data management. however, to successfully implement and use these technologies, many challenges related to scalability, power consumption and regulation must be overcome. it is important american journal of business management, economics and banking volume 28 september 2024 p a g e | 32 www.americanjournal.org to continue research and development in this area to ensure a successful future of blockchain technology. references 1. накамото с. (2008). биткоин: одноранговая система электронных денежных средств. взято из https://bitcoin.org/bitcoin.pdf 2. бутерин в. (2014). смарт-контракт следующего поколения и платформа децентрализованных приложений. взято из https://ethereum.org/en/whitepaper/ 3. вуд, г. (2014). ethereum: безопасный децентрализованный обобщенный реестр транзакций. взято из https://ethereum.github.io/yellowpaper/paper.pdf 4. мугаяр, у. (2016). блокчейн для бизнеса: перспективы, практика и применение новой интернет-технологии. уайли. 5. тэпскотт, д., & тэпскотт, а. (2016). блокчейн-революция: как технология, лежащая в основе биткоина, меняет деньги, бизнес и мир. портфолио. 6. нараянан а., бонно дж., фелтен э., миллер а., голдфедер с. (2016). биткойн и криптовалютные технологии. издательство принстонского университета. 7. чжэн з., се с., дай х., чен х. и ван х. (2017). обзор технологии блокчейн: архитектура, консенсус и будущие тенденции. международный конгресс ieee по большим данным. 8. свон, м. (2015). блокчейн: план новой экономики. o'reilly media. 9. де филиппи, п., и райт, а. (2018). блокчейн и закон: правила кодекса. издательство гарвардского университета. 10. дрешер д. (2017). основы блокчейна: нетехническое введение в 25 шагов. приложение. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 13 www.americanjournal.org digital transformation in bank management: enhancing customer experience through technologydriven marketing strategies usmanov jamshid rasulovich deputy chairman of the board of davr bank umida a. sharipova ph.d. in economics, associate professor, head of the department of international finance and investments, university of world economy and diplomacy, associate professor at the nordic international university, tashkent, uzbekistan email: umida-@mail.ru a b s t r a c t k e y w o r d s the digital transformation in bank management is reshaping the industry by enabling banks to provide personalized, efficient, and customercentric services. this transformation leverages technology-driven marketing strategies to enhance customer experience, redefine relationships, and strengthen customer loyalty. this article explores how digital transformation, including data analytics, artificial intelligence (ai), and customer relationship management (crm) platforms, empowers banks to understand and meet customer needs. through an in-depth analysis of contemporary marketing techniques, this research highlights the benefits, challenges, and future directions of digital transformation in banking. digital transformation, bank management, customer experience, technology-driven marketing, data analytics, artificial intelligence, crm, financial services. introduction the banking sector is undergoing a profound digital transformation, which has accelerated in recent years due to advances in technology and changing customer expectations. today, customers demand personalized, fast, and convenient banking services that align with their digital lifestyles (shankar & rishi, 2021). to meet these expectations, banks are increasingly adopting technology-driven marketing strategies aimed at enhancing customer experience and loyalty. this article examines the role of digital transformation in bank management, focusing on how technology-driven marketing strategies are reshaping customer experiences. the adoption of new digital tools such as data analytics, artificial intelligence, and crm systems is helping banks better understand their customers and offer services tailored to individual needs (gupta & pathak, 2020). this shift not only improves customer satisfaction but also supports banks in american journal of business management, economics and banking volume 30 november 2024 p a g e | 14 www.americanjournal.org optimizing their operational efficiencies. by examining the applications, benefits, and challenges of these technologies, this article provides insights into the current state and future trajectory of digital transformation in banking. main part 1. the role of digital transformation in bank management digital transformation involves adopting digital tools and processes to improve organizational efficiency and customer engagement. in the banking sector, it encompasses several key areas, including the automation of banking processes, enhanced data analytics capabilities, and the adoption of ai for customer service and personalization (bharadwaj, 2019). this shift has allowed banks to move away from traditional banking models and towards more customer-centric operations, enabling a better understanding of customer preferences and needs. for instance, banks now use crm software to store and analyze customer data, which helps managers develop targeted marketing strategies and provide tailored services (kumar & sinha, 2020). additionally, digital transformation enables banks to automate routine tasks, allowing employees to focus on value-adding activities that enhance customer relationships. 2. technology-driven marketing strategies in banking with digital transformation, banks are able to leverage various technology-driven marketing strategies to enhance customer engagement and satisfaction. key strategies include: data analytics and personalization: data analytics tools allow banks to analyze customer behaviors, preferences, and transaction patterns in real-time. this information enables banks to offer personalized services and promotions that are relevant to individual customers (chen & lu, 2018). for instance, a bank might use data analytics to identify customers who are interested in savings products and then tailor marketing campaigns accordingly. artificial intelligence and chatbots: ai-powered chatbots provide instant, 24/7 customer support, offering a more convenient experience for customers who seek immediate assistance (arora, 2020). chatbots can also gather valuable customer insights, which can inform marketing strategies and product recommendations. omnichannel marketing: an omnichannel approach ensures that customers have a seamless experience across various platforms, including mobile apps, websites, and in-branch services. by synchronizing marketing efforts across all channels, banks can provide consistent and unified messaging, making the customer experience more cohesive and engaging (johnson & brown, 2022). customer relationship management (crm) platforms: crm systems are integral to digital transformation, allowing banks to manage customer interactions efficiently and maintain strong customer relationships (thompson, 2020). crm platforms consolidate customer data from different channels, enabling banks to create comprehensive customer profiles for better-targeted marketing efforts. 3. enhancing customer experience through technology customer experience is central to digital transformation in banking, as technology enables banks to deliver more responsive and personalized services. enhanced customer experience is achieved through several digital capabilities: american journal of business management, economics and banking volume 30 november 2024 p a g e | 15 www.americanjournal.org frictionless digital banking: digital banking platforms allow customers to manage their finances with ease, whether through mobile apps or web-based platforms. by minimizing the need for in-branch visits and reducing processing times, banks can offer a frictionless banking experience that enhances customer satisfaction (miller & cooper, 2019). personalized financial advice: using ai and data analytics, banks can provide personalized financial advice based on customer spending patterns and financial goals. for example, some banks use ai to create customized investment portfolios for customers based on risk tolerance and market trends (singh & mehta, 2021). enhanced security measures: digital transformation has enabled banks to improve security by implementing advanced fraud detection systems, multi-factor authentication, and blockchain technology. these measures enhance customer trust by ensuring the security and confidentiality of their financial data (williams, 2020). 4. challenges and risks in digital transformation despite the benefits, banks face several challenges in their digital transformation journey. these include data privacy concerns, cybersecurity risks, and regulatory compliance issues. additionally, the integration of new technologies can be costly and time-consuming, and not all customers may be comfortable with digital banking (fernandez & ortiz, 2021). to address these challenges, banks must prioritize data security, adopt transparent data practices, and ensure that digital services are accessible and user-friendly. conclusion digital transformation is revolutionizing bank management by fostering customer-centric practices and enabling technology-driven marketing strategies. through data analytics, ai, and crm systems, banks can better understand and serve their customers, enhancing the overall customer experience. while challenges remain, particularly around security and regulatory compliance, the benefits of digital transformation are clear. by continuing to innovate and adopt digital strategies, banks can strengthen customer loyalty and remain competitive in an increasingly digital world. references 1. arora, r. (2020). chatbots and ai in banking: enhancing customer engagement and support. journal of digital banking, 5(3), 114-125. 2. bharadwaj, a. (2019). digital transformation in banking: key areas and trends. banking technology review, 2(1), 20-33. 3. chen, j., & lu, m. (2018). data analytics and personalization in banking. journal of financial innovation, 6(2), 92-108. 4. fernandez, l., & ortiz, m. (2021). challenges in digital transformation for banks. international journal of banking studies, 4(4), 214-229. 5. gupta, s., & pathak, h. (2020). crm and customer engagement in banking: the digital shift. journal of marketing in banking, 3(2), 123-137. 6. johnson, t., & brown, d. (2022). omnichannel marketing in financial services. marketing insights, 7(1), 33-49. 7. kumar, p., & sinha, r. (2020). crm and digital transformation in banking. journal of banking innovation, 8(1), 68-79. american journal of business management, economics and banking volume 30 november 2024 p a g e | 16 www.americanjournal.org 8. miller, c., & cooper, j. (2019). frictionless digital banking: customer experience through innovation. financial services journal, 11(3), 56-72. 9. shankar, s., & rishi, v. (2021). customer-centric strategies in the digital age of banking. journal of business transformation, 12(2), 45-61. 10. singh, a., & mehta, l. (2021). ai-driven financial advisory in digital banking. journal of financial technology, 9(2), 100-115. 11. thompson, j. (2020). customer relationship management in the digital era. journal of business and technology, 5(4), 88-102. 12. williams, d. (2020). enhancing security in digital banking. security journal, 15(3), 101-118. 13. палванова, у., якубова, а., & юсупова, ш. (2023). ультразвуковое исследование при спленомегалии. talqin va tadqiqotlar, 1(21). 14. якубова, а. б., & палванова, у. б. проблемы здоровья связанные с экологией среди населения приаралья мақола научно-медицинский журнал “авиценна” выпуск № 13. кемерово 2017г, 12-15. 15. азада, б. я., & умида, б. п. (2017). проблемы здоровья связанные с экологией среди населения праралья. авиценна, (13), 12-14. 16. степанян, и. а., изранов, в. а., гордова, в. с., белецкая, м. a., & палванова, у. б. (2021). ультразвуковое исследование печени: поиск наиболее воспроизводимой и удобной в применении методики измерения косого краниокаудального размера правой доли. лучевая диагностика и терапия, 11(4), 68-79. 17. stepanyan, i. a., izranov, v. a., gordova, v. s., beleckaya, m. a., & palvanova, u. b. (2021). ultrasound examination of the liver: the search for the most reproducible and easy to operate measuring method of the right lobe oblique craniocaudal diameter. diagnostic radiology and radiotherapy, 11(4), 68-79. 18. batirovna, y. а., bahramovna, p. u., bahramovna, p. s., & ogli, i. a. u. (2019). effective treatment of patients with chronic hepatitis, who live in ecologically unfavorable south zone of aral sea region. наука, образование и культура, (2 (36)), 50-52. 19. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392. 20. абдуллаев, а. к. (2023). роль транспортной дипломатии в развитии внешнеторговых маршрутов республики узбекистан. постсоветские исследования, 6(3), 315-323. 21. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 22. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 23. abdullaev, a. (2017). transport aspect of cooperation within sco. international relations: politics, economics, law, 2017(2), 11. 24. abdullaev, a. k. the peculiarities of the use of the special lexis. тошкент2021, 23. american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 17 www.americanjournal.org historical and scientific aspects of creating the third renaissance in uzbekistan musurmankulov farkhod uralovich chief specialist of the department of quality control of education the uzbekistan state institute of arts and culture a b s t r a c t k e y w o r d s the article is based on the analysis of historical sources, according to which the spirituality and education of the peoples of the turan land in the 9th-12th and 12th-14th centuries were the period of the eastern 1-2renaissance and were recognized by the whole world. also, analytical data on the positive works of great thinkers and scientists who lived in the east and left us a rich scientific and spiritual heritage, in the places of science, culture and education, are historical facts, and the work carried out in uzbekistan in the field of science, culture and education is recognized as the beginning of the stage of the third renaissance. turan, movaraunnahr, turkestan, spirituality, education, science, art, culture and enlightenment. introduction the whole world has already recognized that in ancient times turan, turkestan, movaraunnahr, now called uzbekistan, was one of the cradles of world civilization. from here it served as a bridge connecting the east and west, south and north, economic ties, trade, science and art, scientific and universal spirituality and values, the only land route was the great silk road. the great silk road at one time served as the internet, a means of international communication. uzbekistan is a country that has experienced great cultural upheavals in its history, thanks to which completely new civilizations, new cultural and spiritual values were created. in its past history, the people of uzbekistan have repeatedly experienced a period of cultural heights the renaissance. it was in the first period of the eastern renaissance (ix-xii centuries) that nobles, scientists, politicians, masters and military leaders made an invaluable contribution to the development of our history, culture, spirituality and education, justice and the rule of law and world civilization, science, spirituality and education on our ancient and sacred land. mаtеriаls аnd mеthоds in his speech at the ceremony dedicated to the day of teachers and mentors, the president of the republic of uzbekistan shavkat mirziyoyev said: in particular, the 9th-12th centuries (the first renaissance), called the period of the eastern renaissance, were a period of great flourishing of spirituality and enlightenment of the peoples of the turan land. during this period, world-famous great american journal of business management, economics and banking volume 31 december 2024 p a g e | 18 www.americanjournal.org figures appeared. these were scientists-encyclopedists, thinkers, great poets and scientists, great inventors [1]. there are certain aspects of the renaissance culture, which include: 1. the desire for world enlightenment, the widespread use of the achievements of the culture of the past and neighboring countries, especially the development of natural, philosophical and social sciences. 2. from nature, the development of natural science, rationalism, faith in the power of reason, focus on sciences aimed at finding truth; consider truth as the basis of human imagination, science. 3. to glorify man, to substantiate his mental, natural, artistic, spiritual qualities, to improve humanity, high moral rites and rules, to strive to educate a perfect person. rеsults аnd disсussiоn universality encyclopedia, interest in everything was one of the important aspects of the culture of this period. renaissance thinkers flourished during the abbasid rule in the arab caliphate. in 762, the capital of the arab caliphate was moved to baghdad, and baghdad became the center of science. harun ar rashid of the abbasids and his son caliph al-ma'mun (813-833) sponsored the development of science, compiled many rare books and founded a large library. scholars and translators from different countries in various fields were invited to conduct research in the field of science, create innovations, and also translate. al-ma'mun paid special attention to the development of science in khorezm and khorasan during his tenure. he gathered around him local scholars from khorezm, fergana, sogdiana, shosh, farob and created conditions for their creative work. after the accession of the caliph in 813, he developed this work. caliph al-ma'mun gathered scholars from khorasan, movaraunnahr, bactria, ferghana and khorezm to bait al-hikma, the assembly of scholars in baghdad. they taught, took students from the arabs and made their name known throughout the world. they were muhammad musa al-khwarizmi, abu mashar al-balkhi, abu nasr al-farabi, ahmad al-farghani, abu rayhan beruni, abu bakr al-razi, abu ali ibn sina, mahmud kashkari and others. we believe that the great merits of the renaissance thinkers can be described as follows: they made great discoveries in various fields of science. the scientific teachings they created serve the future of all mankind. it was they who made serving mankind the essence of their lives. the central asian region, which has been at the crossroads of world trade routes for thousands of years, has a unique rich culture. another great contribution to the cultural and educational world was the translation of the works of ancient greek scientists plato, aristotle, socrates, hippocrates, galen and euclid into arabic, which contributed to the development of scientific thought. in addition to mastering the prospects of greek science in the house of wisdom, they also studied indo-sanskrit culture and science with interest. the great scientist of the east, our compatriot khorezmi "al-jabr-wal-mukabala" ("equations and comparisons"), "hisab-al-hind" ("indian counting"), "kitab surat ul, arz", ("er surat"), in his books such as "history" (book of history), "astronomical tables", "at the hour of the sun", "book of construction" priceless works that introduced the world to the name of the scientist. al-farghani made great discoveries in mathematics, geography and astronomy. he was the first to pave the way for accurate geographical maps that christopher columbus used to discover america. another of his invaluable contributions to world science and education was his perfect study of lunar and solar eclipses. ahmad farghani is known in the west and east as "munajim ar-rais". in the western world, he was called alfraganus. abu nasr al-farabi was known as the "second teacher". american journal of business management, economics and banking volume 31 december 2024 p a g e | 19 www.americanjournal.org there has never been such an intelligent person among the scientists of islamic countries. farabi's scientific legacy is diverse and can be divided into two areas: 1. interpretation and study of the scientific legacy of ancient greek philosophers and natural scientists; 2. independent scientific research into the problems of medieval science. the great thinker of the eastern renaissance, abu ali ibn sina (980-1037), wrote more than 450 works in various fields of science, of which only 242 have reached us. his famous philosophical book "encyclopedia" contains five disciplines: logic, medicine, astrology, music and theology. in addition to the khorezm language, the great figure of the central asian spiritual and educational world abu rayhan beruni mastered the sogdian, persian, syriac, greek, arabic, hebrew and sanskrit languages. these are "monuments of the past", "famous people of khorezm", "geodesy", "india", "kanudi masudi", "mineralogy", "saydana" and others. abu rayhan beruni is a bright representative of the khorezm scientific school, as well as the founder of the mamun academy, a scientific center in urgench, known as the house of wisdom. in his work, khorezm science reached its apogee. another great representative of turkish culture of the 11th century is yusuf khos khodzhib. he is a great scholar who mastered the encyclopedic knowledge of his time and made a great contribution to our spirituality with his work "kutadgu bilig" ("knowledge leading to happiness"). his teachings on justice and humanity play a key role in qutadgu bilig. another scholar of the 11th century, mahmud kashgari, made a worthy contribution to the spiritual and educational development of mankind. his work "devonu lugatit turk" (dictionary of turkish words) immortalized his name in the history of science and culture, and one of the great thinkers of the east is ahmad yugnaki. in his "hibat al-hakik" ("gift of wisdom"), it can be said that all sciences, moral rules, socio-political, religious, moral and philosophical views and teachings of the past found their own scientific and artistic expression. we want to feel the great contribution of the first thinkers of the renaissance, who glorified the world with their great scientific teachings and discoveries, glorified the country of turan, their followers, their "academies" in the development of science and enlightenment. the second period of the eastern renaissance (the second revival), undoubtedly, the period of amir temur and the timurids in the history of the turan land and the life of its peoples, it should be noted that this was the stage of civilizations. the end of the 14th beginning of the 15th century were turning points in the socioeconomic, political, cultural, spiritual and educational life of our ancestors. the invaluable teachings of eastern thinkers, science, architecture, fine arts, painting, music, developed trade and economic relations, the creation of a strong central state and its domestic and foreign policy had a vital impact on the process of european awakening. conclusion it should be noted that the period of amir temur and the timurids occupies a special place in the history of uzbek statehood. amir temur's merits to the peoples of central asia are great: first, he liberated the country from the mongol invaders; second, he laid the foundations of independent uzbek statehood; third, he ensured the governance of the country according to the rules (laws); fourth, the cause of justice and education. according to the motto "power in justice"; fifth, he cleared the neighboring states of invaders, despotic and cruel dictators and established law and order there; american journal of business management, economics and banking volume 31 december 2024 p a g e | 20 www.americanjournal.org sixth, he made samarkand the center of the world. it became the capital, where many ambassadors, tourists, traders, scientists from such countries as spain, france, great britain, china come. in the middle ages, amir temur created such conditions in turkestan that the ulugbek observatory, alisher navoi, babur and others managed to attract the attention of the world community with their works, just politicians amir temur, shahrukh mirzo, ulugbek mirzo, hussein boykaro, zakhiriddin muhammad babur. wise geniuses, righteous men, great scientists led the development of science, gave priority to the construction of madrasahs, libraries and hospitals, writing and publishing books, organized scientists, poets, scientists, philosophers and historians around themselves and listened to their leadership, followed their advice, promoted them to higher ranks. rеfеrеnсеs 1. official website of the president of the republic of uzbekistan. [electronic resource]. access mode: www.prezident.uz/ (date of access: 11.05.2021). 2. [electronic resource]. access mode: :// uz.sputniknews.ru /20201229/ poslanie-prezidentauzbekistana-shavkata-mirziyoyeva-obeim-palatam-oliy mazhlisa-15696114.html/ (date of access: 11.05.2021). 3. ochilova n.r., manzarov yu.kh. aesthetic education is the basis for the development of intelligence.//30 years of the convention on the rights of the child: modern challenges and ways to solve problems in the field of protecting children's rights: int. conf. russian state professional pedagogical university, 2020. pp. 389-394 4. manzarov yu.kh. (2020). the role of propaganda of folk art and art in the education of youth.//30 years of the convention on the rights of the child: modern challenges and solutions to problems in the field of protecting children's rights: int. conf. russian state professional pedagogical university, 2020.pp. 226-232. 5. manzarov yu.kh., ochilova n.r. (2019). how to influence your attitude towards a person. academy. 11 (50). pp. 18-20. 6. www.ziyonet.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 122 www.americanjournal.org increasing the efficiency of using financial funds in budget organizations kalonov shahijahon normakhmad ugli independent researcher of kimyo international university mail: shoxjoxonkolonov19942702@gmail.com orcid: 0009-0007-6636-7293 a b s t r a c t k e y w o r d s in this article, the need for effective spending of financial resources in budget organizations and its practical situation were studied using the example of higher education institutions. in particular, the sources of formation of financial funds in higher education institutions and the aspects related to their spending were researched theoretically and practically, and appropriate recommendations and conclusions were formed. budgetary organizations, financial results, accounting of financial results, international financial reporting, budgetary funds, extrabudgetary funds. introduction attracting financial resources and deploying them for effective purposes in budget organizations is significantly different compared to enterprises and organizations operating on a commercial basis. the main reason for this is that in budget organizations, the state is the owner of financial resources, and in commercial organizations, these funds belong to private individuals or shareholders. the results of analyses and studies show that the level of effective use of financial resources in budget organizations is significantly lower than that of private enterprises and organizations. in recent years, there have been a number of controversial opinions on the purposeful use of financial resources, their direction, and their use in state budget organizations, in particular in state-owned higher education institutions. the way of financing from the budget should not require changing the issues of state responsibility. it should be shown that the use of budget financing methods is effective in achieving the intended goal. therefore, it is necessary to harmonize the budget expenditures with the strategic goals of the state [1]. in the article, the sources of financial resources and problems related to their use in state-owned higher education institutions were identified, and appropriate recommendations were developed for their consideration. https://quillbot.com/grammar-check#_ftn1 american journal of business management, economics and banking volume 24 may 2024 p a g e | 123 www.americanjournal.org literature review control and effective use of financial resources in budget organizations are carried out on the basis of various forms of financial reporting. in particular, the main ones are: financial statements of budget organizations and recipients of budget funds; report on income receipts to the state budget and budgets of state special funds; report on the implementation of the state budget; report on the execution of budgets for state special purpose funds [2]. it is clear from this that the issues of allocation of state funds and their effective use in budget organizations are defined on the basis of relevant legal documents of the government. in particular, budget organizations shall draw up the above-mentioned financial reports as of january 1 of the next reporting year. quarterly financial reports are drawn up as of april 1, july 1, and october 1 of the reporting year. a liberal budget policy on the formation and disposal of funds is implemented in state higher education institutions, which are budget organizations. in particular, according to the resolution of the president of the republic of uzbekistan no. pq-61 of december 24, 2021, "on measures to grant financial independence to state higher education institutions," a number of financial independence was granted to higher education institutions, the main of which are as follows: determining the cost of training on a fee-contract basis, taking into account the demand in the educational services market; determining and extending the payment terms of students' payment-contract funds; among these are the involvement of local and foreign professors and specialists who can apply modern pedagogical technologies and conduct scientific research on the educational process on the basis of a contract[3]. decentralization of the budget policy means submitting many financial decisions to local authorities. for example, according to m. khaidarov, as a result of decentralization, it is assumed that community services will be organized and provided in such a way that they should ensure full satisfaction of the needs of the local population [4]. assoc. a. lee emphasizes that the role of the state budget is inextricably linked with all other balances of income and expenses, estimates, financial plans, as well as credit and cash plans, while a. lincoln states that "the legitimate purpose of the state is to do all the work necessary for human society, whether it is done individually or together. he puts forward the opinion that it consists of performing an activity that he cannot manage at all or that he cannot perform properly[5]. from his opinion, it is possible to understand what functions of the state can be taken over by him. in general, state budget organizations have different views on the effective use of financial resources, and they do not express each other in the same way. for example, j. hicks from great britain "the financial result is the growth of capital during the reporting period. according to the opinion that the loss is a reduction of the capital, the australian y.according to schumpeter, "financial result is the difference between the company's income and expenses [7]". famous us economist i.fisher uses the economic definition that "a financial result is the increase in the value of assets during the reporting period due to changes in profitability". v.rieger from germany [8] tried to reveal the economic content of financial results by saying that "financial result is the difference between [9] the funds collected during the entire activity and the funds at the time of establishment of the enterprise". https://quillbot.com/grammar-check#_ftn2 https://quillbot.com/grammar-check#_ftn3 https://quillbot.com/grammar-check#_ftn4 https://quillbot.com/grammar-check#_ftn7 https://quillbot.com/grammar-check#_ftn8 https://quillbot.com/grammar-check#_ftn9 american journal of business management, economics and banking volume 24 may 2024 p a g e | 124 www.americanjournal.org it can be seen that the financial results are reflected in what value and for which periods they are prepared, and in some cases, the abstraction of the growth of the company's funds and other aspects are among the areas that are the focus of the attention of economists and specialists. analysis and results funding of budget organizations is carried out at the expense of the state budget, state special purpose funds, and extra-budgetary funds of the budget organization. as a result of the reforms in the education system, the budgetary organization considered a radical change in the sources of financing of higher institutions. in particular, for the first time, 10 higher education institutions of the republic were transferred to the self-financing system as a result of the gradual academic and financial independence of about 40 state higher education institutions. based on its potential, new opportunities are emerging in the issue of attracting budgetary and extra-budgetary funds. information on budget and non-budgetary funds for the years 2018–2022 on the income ratio and dynamics of state higher education institutions within the ministry of higher education, science, and innovations of the republic of uzbekistan by sources of financing is provided. figure 1. dynamics of ratio between sources of income of higher education institutions in the republic of uzbekistan1 (as a percentage of the total) as can be seen from the data in the picture, the share of budget revenues in the total sources of income of state higher education institutions is decreasing year by year. for example, this source was 32.3 percent in 2018, but by 2022 it decreased to 26.3 percent, or 6.0 points. also, the share of revenues generated from extra-budgetary funds has a tendency to increase in the following years, and it can be seen that if this source was 67.7 percent in 2018, it will increase to 73.7 percent by 2022, or by 6.0 points during the analyzed period. of course, this situation is caused by the reforms implemented in the education system in recent years. in particular, the education market in uzbekistan is expanding, and its main direction is becoming a source of commerce. non-state higher education institutions are showing enthusiasm in this regard. in fact, the state, foreign, and non-state higher education institutions operating in our country have common and specific characteristics, and the mission of almost all non-state educational institutions in the country's educational market is aimed at increasing the level of capitalization and the amount of dividends of the founders due to the increase in the number of students. it is worth noting that a number of economists have carried out and are continuing research on 1developed by the author based on official statistics. 32.3 24.4 22.5 23.2 26.3 67.7 75.6 77.5 76.8 73.7 0 10 20 30 40 50 60 70 80 90 2018 year 2019 year 2020 year 2021 year 2022 year extra-budget funds state budget american journal of business management, economics and banking volume 24 may 2024 p a g e | 125 www.americanjournal.org financial results and their implementation in budget organizations, including higher education. one of them is a. khojaev, a researcher who carried out scientific work on the accounting and internal audit of extra-budgetary funds of higher education institutions. in his scientific work, a. khojaev extensively researched the activities of state, foreign, and non-state higher education institutions in our country. in particular, they identified the financial differences between state, foreign, and nonstate educational institutions. the following picture shows information about the criteria developed by a. khojiev in the framework of his research on the organization of financial resources and accounting in state, foreign, and nonstate higher education institutions. figure 1. general and specific differences of higher education institutions in uzbekistan aspects state higher education institutions are established on the basis of the state budget and are considered state subjects as budget organizations foreign higher education institutions and branches are established on the basis of foreign capital and operate through a self-financing system. it is established at the expense of the founder and often operates in the form of a limited liability company state foreign non-state propert y status it is organized as a budget organization it is organized as a joint venture in the form of a limited liability company it is organized as a limited liability company state foreign non-state organizational and legal form it is organized on the basis of the instruction on accounting in budget organizations. it is maintained on the basis of the plan of accounts according to the budget organization. economic accounting is organized based on national and international standards. it is organized on the basis of national standards on the basis of economic accounting. state foreign non-state accounting procedure it is financed on the basis of the state budget and extra-budgetary funds. funds of the top foreign higher education institution, educational services are financed on the basis of its own additional funds. it is financed on the basis of personal funds of the founder of the institution, found on the basis of entrepreneurial activities (providing educational services, etc.) state foreign non-state funding procedure opens 27 digital accounts of the central bank for budget accounting. open accounts in foreign and national currency for maintaining 20 digital business accounts in commercial banks. opens national and, if necessary, foreign currency accounts to maintain 20 digital business accounts in commercial banks. state foreign non-state account opening procedure monthly, quarterly accounting balance sheets, statistical reports, property status reports on wages and deductions. salary monthly, vat monthly, statistical reports, annual financial reports annual, quarterly tax and statistical reports, salary monthly, annual financial reports state foreign non-state reporting procedur e american journal of business management, economics and banking volume 24 may 2024 p a g e | 126 www.americanjournal.org as can be seen from the picture, the general and specific aspects of state, foreign, and non-state higher education institutions operating in uzbekistan are highlighted in six directions. as can be seen from the above, the issues of accounting, analysis of extra-budgetary funds, and organization of internal audit work are fundamentally different in higher education institutions with different forms of ownership. in particular, the opening and maintenance of accounts of higher education institutions in commercial banks and the accounting of income and expenditure of financial funds to these accounts are not the same. the main difference is that if non-state higher education institutions open their accounts in banks as commercial organizations, the accounts of higher education institutions that receive funds from the budget open accounts in the treasury departments of the ministry of finance and dispose of funds within the limits of the relevant estimates. as a result of the analysis and studies, we witnessed the presence of significant differences in the sources of financial resources and their costs in higher education institutions operating from the budget compared to foreign and non-state higher education institutions. in particular, this difference is implemented in state higher education institutions according to the goals and relevant standards set within the cost estimate, and in foreign and non-state universities, it is focused on attracting more qualified professors and teachers and increasing the quota. summary as a result of the research, analysis, and study of the effective use of financial resources in budget organizations, we were able to formulate the following conclusions:. • foreign and domestic economists do not have a single approach regarding the financial sources of budget organizations and their spending. besides, in recent years, funding of state higher education institutions from the budget has been significantly reduced. • sources of financial resources and their placement in budgetary organizations differ significantly from those of foreign and non-state higher education institutions. if this distinction is made within the framework of the approved estimate of the cost of funds in state higher education institutions, in foreign and non-state universities, the main attention is paid to attracting more qualified professors and teachers and attracting more qualified professors and increasing the number of students. • the effectiveness of financial funds in state higher education institutions financed from the budget is lower than that of foreign and non-state higher education institutions, which is caused by a number of factors. for example, if the state is interested in the effective use of funds in higher education institutions, the founders of non-state higher education institutions will benefit from this. • it is necessary to ensure transparency in the purchase of goods and equipment in higher education institutions financed by the budget. in particular, when concluding a contract, taking into account the real prices of the objects to be purchased, the delivery of goods and equipment within the terms specified in the contract, etc., are among these. in general, effective use of funds in higher education institutions financed by the state budget is considered an urgent issue, and there are still some problems that are waiting to be solved. american journal of business management, economics and banking volume 24 may 2024 p a g e | 127 www.americanjournal.org references 1. ernazarov k.yu. methods of financing from the budget and their characteristics. scientific electronic magazine "economy and innovative technologies". no. 4, july-august, 2020 2. order no. 157 of the minister of finance of the republic of uzbekistan dated december 18, 2018 "on approval of the standard of budget accounting of the republic of uzbekistan (bhs no. 3) "budget report" 3. [registered by the ministry of justice of the republic of uzbekistan on january 18, 2019, list number 3124] 4. decision of the president of the republic of uzbekistan dated december 24, 2021 no. pq-61 "on measures to provide financial independence to state higher education institutions" 5. khaidarov m.t. issues of increasing the independence of local budgets//economy and finance. t., 2017. #6. b.21-30. 6. li.a.n, the role of the state budget in the development of the country's economy//financial reference magazine. t., 2016. no. 12(60). b.12-14. 7. hicks d.r stoimost i capital. m.: progress, 1993. 487 p. 8. schumpeter y. teoriya ekonomicheskogo razvitiya (issledovanie predprinimatelskoy pribyli, kapitala, kreita, protsenta i tsikla kon'yunktury). m .: progress , 1982. 455 p . 9. fisher i. the nature of capital and income. new york: macmillan, 1930. 29. walton p., haller a., raffourner b. international accounting. london : thomson , 2003. 430 p . 10. sokolov ya.v., sokolov v.ya. istoriya bukhgalterskogo ucheta. m.: magister, 2011. 287 p. 11. khojaev a.s. improvement of accounting and internal audit of extra-budgetary funds of higher education institutions. 08.00.08 – doctor of science dissertation on the specialty "accounting, economic analysis and audit". -t.: tmi, 74 p. 12. gafurov o. valyuta kredit munosobatlarini tashkil etishda davlatning valyuta kredit siyosati o’rni //евразийский журнал академических исследований. – 2024. – т. 4. – №. 4 part 2. – с. 89-98. 13. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). 14. gafurov, olimjon, humoyun kholmuminov, and sevinch abrueva. "directions of attracting foreign capital and specific characteristics of the eurobond transaction." (2023). 15. хошимов, ж. р., б. б. очилов, and с. с. наримонов. "инвестиционная политика: теория и практика." (2024). 16. g’afurov o., tojiboyev m. global yevroobligatsiyalar bozorida o ‘zbekiston ishtirokini kengaytirish imkoniyatlari //евразийский журнал права, финансов и прикладных наук. – 2022. – т. 2. – №. 13. – с. 114-119. american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 14 www.americanjournal.org personnels in different organizations and the essence of this process isroilov islomiddin kamoliddin o‘g‘li zomin district administration is the project manager of the digital economy, uzbekistan e-mail: islomiddinisroilov7@gmail.com a b s t r a c t k e y w o r d s this article discusses the procedure for selecting qualified personnel in various government and non-governmental organizations and institutions implementing this announcement. at the same time, the article provides information on the opinions and theories of foreign scientists and foreign interpretations of this process. besides of that, this article indicates and interprets us some criateries about personnels’ selection. selecting, criteria, employee, organization, methods, ability, rucruitment, succes analysis, factors. introduction today, in all developed countries, qualified, qualified personnel remain one of the main priorities. to do this, you can abandon a variety of ways and procedures for selecting qualified personnel in various government and non-governmental organizations. at the same time, while globalization in today's modern world captures a correlation between talent and masters around the world, the global business process and outsourcing market reflect special development. besides of that, for every company or every organization the procedure of selecting and also recruitment is very significant. but no other factors like the size of the company or the sort of industry undermines the intensity and importance of choosing and recruitment. as a matter of fact, selection is all about determining, engaging, and renting the proper candidates who is able to fill the open circumstance of the company or institution. as you know this is a crucial step in any kind of enterprise this is because the quality of workforce directly assists to the performance of the enterprise and achievement. moreover, when the procces of selection and recruitment is well-structured, it will open doors to fresh perspectives and innovations. bringing experienced employees who can contribute to creat a positive work environment that will boom employee morale. and also, it occasions the long-term succes of the organization. the personnel selection covers all workflows and activities of candidates, including the creation, analysis and evaluation of the work profile internally and externally as well as the final decision for or against applicants. in any organization, this is a critical process and can greatly influence the quality of the staff and the overall performance of the organization. the process of selecting personnel should be determined on the basis of accurate and research work. this will help ensure that you and all the people involved choose the best talents for the promoted position. candidate analysis is based on ability american journal of business management, economics and banking volume 26 july 2024 p a g e | 15 www.americanjournal.org diagnostics and helps find scientific progress on success for a particular job. using different criteria, recruiters can evaluate a candidate's ability to take office using this diagnosis.that will assist the perfect and objective choice of process to be easier than relying to the instinct. there are several methods of selecting staff to mention you. as a matter of fact, from automated cv screening and reading cover letters for holding whiteboard interviews and asking trick questions, the range of methods employers use to assess candidates is immense and overwhelming. so, how could you tell which employee selection methods will be most effective in your recruitment process? we will detail the topic below, and we’ll show you some practical examples of pre-employment assessments that you can use in the hiring process to make candidate selection bias-free, less timeconsuming, and more aligned with your company culture and goals. what’s in?  what is employee selection?  what are the types of candidate selection methods? external vs internal recruitment sourcing channel classification talent pool and referral recruitment internships and apprenticeships boomerang employees  best employee selection methods for choosing top talent 1. assess cognitive ability 2. evaluate learning agility 3. situational judgement test (sjt) 4. measure employee integrity 5. test job knowledge 6. give a test work assignment 7. organize an assessment center 8. structure your interview process 9. conduct peer interviews 10. check candidate references 11. host a job trial day what is employee selection? employee selection, also known as candidate selection, is the process of finding a new hire best suited for the role in question. the steps in the employee selection process depend on the role you’re hiring for, your recruiting budget, the seniority of the position, available resources, and your organizational needs. rather than relying on one method as the sole criterion for selecting or rejecting candidates, your selection methods should be combined to make the most informed decision possible. for instance, you can combine pre-employment tests with other employee selection methods like job interviews or trial days to accurately predict job success and cultural fit. https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-0 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-0 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-1 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-1 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-2 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-2 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-3 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-3 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-4 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-4 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-5 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-5 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-6 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-6 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-7 https://harver.com/blog/employee-selection-methods/#elementor-toc__heading-anchor-7 https://harver.com/blog/employee-selection-methods/#cognitiveability https://harver.com/blog/employee-selection-methods/#cognitiveability https://harver.com/blog/employee-selection-methods/#learningagility https://harver.com/blog/employee-selection-methods/#learningagility https://harver.com/blog/employee-selection-methods/#sjt https://harver.com/blog/employee-selection-methods/#sjt https://harver.com/blog/employee-selection-methods/#integrity https://harver.com/blog/employee-selection-methods/#integrity https://harver.com/blog/employee-selection-methods/#jobknowledge https://harver.com/blog/employee-selection-methods/#jobknowledge https://harver.com/blog/employee-selection-methods/#assignment https://harver.com/blog/employee-selection-methods/#assignment https://harver.com/blog/employee-selection-methods/#assessmentcenter https://harver.com/blog/employee-selection-methods/#assessmentcenter https://harver.com/blog/employee-selection-methods/#interview https://harver.com/blog/employee-selection-methods/#interview https://harver.com/blog/employee-selection-methods/#peerinterview https://harver.com/blog/employee-selection-methods/#peerinterview https://harver.com/blog/employee-selection-methods/#references https://harver.com/blog/employee-selection-methods/#references https://harver.com/blog/employee-selection-methods/#trial https://harver.com/blog/employee-selection-methods/#trial american journal of business management, economics and banking volume 26 july 2024 p a g e | 16 www.americanjournal.org booking.com‘s employee selection process and methods for different roles. what are the types of candidate selection methods? before we dive into the topic and detail the different selection methods, let’s quickly look at how they are classified or grouped. firstly, external vs internal recruitment first of all, you can recruit candidates from external sources, and this method is called external recruitment. secondly, you can look inside of your company and source candidates for new or open roles from your existing employees. this is called internal recruitment and helps to enable internal mobility or filling open roles with internal job seekers. sourcing channel classification another way to classify the different candidate selection methods is to group them based on the sourcing or recruitment channel used. for example, you can use advertising to source new candidates; this includes direct advertising, where you place job adverts on job boards or your career site, and social advertising, where you source your candidates through job adverts shared on social media platforms. secondly, talent pool and referral recruitment another channel for finding new employees can be your existing talent pool or database of candidates who have previously applied to roles within your company and were suitable but were not hired. then, you can rely on referral recruitment as another selection method. here, as the name implies, you are asking your existing employees to mean potential candidates. tip: harver’s automated reference checking solution continuously converts 50% of references into passive candidates. https://harver.com/software/reference-checking/ https://harver.com/software/reference-checking/ https://harver.com/software/reference-checking/ https://harver.com/software/reference-checking/ https://harver.com/software/reference-checking/ american journal of business management, economics and banking volume 26 july 2024 p a g e | 17 www.americanjournal.org thirdly, internships and apprenticeships if the roles you’re hiring for are entry-level, as is often the case in high volume recruitment, then a good employee selection method is to offer internships and apprenticeships. both options ensure that you can act on how to get candidates with the right skills and potential, and the “trial” period gives you the perfect opportunity to develop their skills, while assessing their culture fit. fouthly, boomerang employees this method does not apply to all roles, but it can be a solution if, for example, you’re hiring a lot of seasonal workers. boomerang employees are basically people who have worked for your company before, and have left on good terms. you already know they have the right skills, and they know the ins and outs of the job already, so they’re a good option to consider. in the next section, we’ll focus on the external recruitment methods and referral recruitment, and we’ll detail some of the types of assessments you can use to make sure you’re selecting the top candidates for your open roles. the analysis of the references concerning theme the explorations indicates that, selecting and receiving candidates started many years ago, and this aspect has been continuing and developing dramatically so far. if we glance at the ability and aptitude tests, we can realise that aptitude, and ability, tests continue to be a major focus of exploration in personnel selection. anastasi (1989) presents an overview of some major trends in ability and aptitude testing, containing emphasis on theory, and construct validation, the next issue is that response point, validity generalization, and the responsibilities of analysis users. in may 1990, the us office of personnel management introduced a new notion about examination for college graduates searching government careers. for each of six job families, tests of verbal and quantitative reasoning abilities have been improved that are cast in all terms of concrete duties appearing on those job. moreover, the use of meta-analysis to calibrate the absolute and relative validaties of selection procedures more precisely demands the availability of validity studies. but articles have become increasingly reluctant to publish average validity studies. the basic solution to this problem is the new test validity year book, edited by professor frank landy of pennsylvania state university. international study of ryan a.m. had an aim to measure the impact of national and cultural features on the differences in personnel selection methods. this research revealed some differences for huge and small enterprises:the huge companies tend to use interview more frequantly that small companies implement. the validity of a selecting procedure may be established with respect to a range of relevant components of work, then “synthesized” (emperically combined) for use for a given job or job family based on those particular components of work that are deemed relevant via a job analysis (see johnson and carter, 2010;steel, huffcutt, and kammeyer-mueller, 2006). besides of that, a.bayesian approaches to meta-analysis balances the validity information from a meta-analysis with locally estimated validity coefficients in a statistically interpreted manner (newman, jacobs, and bartram, 2007). research methodology dependable variable for the regression model is the degree of use of selection methods (dusm) described earlier. factors of the model are choice criteria of selection methods. the authors have selected the following criteria from the original list: company’s business area, job difficulty, the size of the company, the age of the company, hrs coefficient and organizational structure (table 1). https://harver.com/job-knowledge-skills-assessments/ https://harver.com/job-knowledge-skills-assessments/ https://harver.com/job-knowledge-skills-assessments/ https://harver.com/job-knowledge-skills-assessments/ american journal of business management, economics and banking volume 26 july 2024 p a g e | 18 www.americanjournal.org table i. criteria description criterion factor in the model method of accounting in the model company’s business area manufacturing, construction, restaurants and hotels, transport and communications, financial sector, real estate, education, services dummy variable, business area “wholesale and retail trade” is taken for the base variant job difficulty the level of seniority dummy variable company’s size size absolute figure company’s age age absolute figure hrs coefficient hrs absolute figure organizational culture hierarchical, adhocracy, clan dummy variables, the market culture is taken for the base variant the sample for this study was formed in two phases. in both cases, the authors had non-random sample because it was hard to form random sample for their purposes. for the first phase of the study, a target sample of 13 companies was used. all companies participated on a voluntary basis. the goal of the first phase was the formation of an optimal questionnaire format to facilitate further data collection process. during this stage, the authors adjust initial set of choice criteria by removing outdated methods and criteria. for the second phase, non-random sample of 40 companies were used, 9 of which were a part of the first sample. analysis and results the analysis indicates that the results of the general linear regression model is presented in the table below. table ii. the results of linear regression for dusm f-statistics 5.22 r-square adjusted 0.4018 dusm direction of relationship p-value factor significance job seniority level + 0.000 significant manufacturing + 0.023 significant construction restaurants and hotels transport and communications + 0.495 0.414 0.467 not significant not significant not significant financial sector + 0.001 significant real estate education services + + 0.929 0.941 0.684 not significant not significant not significant size age hrs + 0.612 0.833 0.002 not significant not significant not significant american journal of business management, economics and banking volume 26 july 2024 p a g e | 19 www.americanjournal.org hierarchical adhocracy + + 0.000 0.008 significant significant clan + 0.066 not significant days weeks months + 0.405 0.852 0.521 not significant not significant not significant const + 0.858 not significant the multivariate regression model can be susceptible to the problem of multicollinearity (high correlation between regressors). table iii demonstrates the absence of significant multicollinearity in the model, because the critical values are below 4, while in some researches multicollinearity was rejected even if critical values were less than 8 or even 10 the first hypothesis (h1) about influence of the number of required skills for a position (job seniority level) on the degree of use of selection methods is not statistically rejected with the 95% confidence interval: regressor “job seniority level” (see table ii) is significant and has direct relation with dependent variable dusm. the second hypothesis (h2) about the inverse relation between dusm and the required amount of input trainings is tested using the same regression model as for the first hypothesis. dummy variables of different training periods (days, weeks and months) are insignificant (table ii), thus, the second hypothesis is rejected. the third hypothesis (h3) about the interdependence of dusm and company’s business area is valid only for manufacturing and financial sector (table ii). given that the base business area in the model was “wholesale and retail trade”, one can interpret the results as follows: the degree of use of selection methods is higher for manufacturing and financial sector in comparison with wholesale and retail trade. authors believe that it is useful to look at correlation tables (pair correlations between selection methods and business areas) for a more accurate testing of the h3. furthermore, all significant pair correlations between regression model factors selection methods and business areas financial sector construction manufacturing competency test 0.3609 personality test 0.4713 questionnaire 0.3954 lie detector 0.7613 telephone interview 0.3187 biographical method 0.4156 references checks 0.372 american journal of business management, economics and banking volume 26 july 2024 p a g e | 20 www.americanjournal.org in our subjective opinion, the third hypothesis may be considered valid only for construction and telephone interview, manufacturing and both biographical method and reference checks, financial sector and lie detector. the factor of size in the regression model (table ii) is not statistically significant, thus let us reject the forth hypothesis about the interdependence between dusm and the size of the company (h4). results interpretation first, the authors would like to stress the limitations of the empirical research – limited sample of 40 companies. further research with a bigger sample is needed for results validation. another complicating factor in the analysis of the empirical results is the large number of averaged estimates, mainly relating to the dependent variable, the degree of use of selection methods (dusm). in particular, average time spent on each selection methods is meant – these raw data obtained from hr specialists can be inaccurate. the confirmation of the first hypothesis means that the more the skills a job position requires, the greater the degree of use of personnel selection methods. this seems to be sensible assuming that the indicator of job complexity, or a number of required skills, is a job seniority. for all cases, when the total number of required skills increases with the seniority level of the position, the hypothesis stays valid. the rejection of the second hypothesis means that the required period of entry training has no inverse relation with the degree of use of selection methods. the main problem in testing this hypothesis is the high number of different factors, which are not included in the model, still influence the length of period of entry training. these factors may not be related to candidate’s characteristics, which are checked by selection methods. the ideal situation to test this hypothesis would be the presence of mandatory corporate training for all new employees. unfortunately, such corporate training was not the focus of this study. in the study, there is the prototype of research; this hypothesis was also not confirmed. the third hypothesis about influence of company’s business area on the degree of use of selection methods was rejected in general but partially confirmed for several business areas and methods. in particular, companies from construction sector, on average, use more often and durable telephone interview compared to other companies. similar results are for manufacturing companies and both biographical methods and reference checks, financial companies and lie detector. taking into account the minor sample, extrapolating of results on all other companies is not accurate. the forth hypothesis about relation between company’s size and dusm is partially confirmed for several selection methods. personality tests have the highest correlation with company’s size. this may indicate that big companies have mandatory training and thus more concerned about personal characteristics rather than competencies. big companies also more often use questionnaire according to results. probably this is because of greater scale of bureaucracy in large companies. the relation between the use of telephone interviews and the size of the company is surprising, as phone interviews are used in almost all companies for vacancies of all levels. perhaps the degree of use of phone interview rises in big companies with the increase of time spent on an interview. the assessment center is not one of the most popular, which is natural given the necessary expenses to carry it out. these are the results interpretation of this empirical analysis. some of results are of particular value, given that the study is not typical for the field of personnel selection. american journal of business management, economics and banking volume 26 july 2024 p a g e | 21 www.americanjournal.org conclusion and suggestions so in conclusion, in today’s modern world selecting and receiving the high-quality and brilliant personnels is a very significant factor for every organization. furthermore, following the criateries that we mentioned above will assist us more and more for selecting the right candidate for our company and also meditating and acquiring the knowledge about this procedure will develop your aptitude in the future. moreover, testing professionals should provide the selection procedure administrators or users with details on how the selection procedure is to be scored and how results should be interpreted. note that the documentation provided in commercially available test manuals may not provide sufficient or complete documentation with regard to the proper application of the selection procedure. administration documentation should provide objective information regarding any role of the test administrator in the intended interpretation of test scores, the positive and negative consequences of test use, and protecting the security of test content and the privacy of test takers. the administration documentation should therefore help readers make appropriate interpretations of scores and related information and warn them against common misuses. processes should be followed to ensure accuracy in scoring, checking, and recording results. this principle applies to the testing professional and to any agent to whom this responsibility has been delegated. the responsibility cannot be ignored or substituted by purchasing services from an outside scoring service. quality control checks and routine monitoring should be implemented to ensure accurate scoring and recording. procedures for rescoring of tests when mistakes are suspected should be clear to administrators. instructions for scoring by the user should be presented in the administration documentation in detail to reduce clerical errors in scoring and to increase the reliability of any required judgments. distinctions among measured constructs should be described to support the accuracy of scoring judgments. scoring keys should not be included in technical reports or administration manuals and should be made available only to persons who score or scale responses. if computer-based test scoring and interpretation procedures (e.g., automated feedback reports) are used to process responses to a selection procedure and generate reports, the testing professional should provide detailed instructions on how they are to be used in decision making. when relevant to the interpretation of test scores, the conditions under which the test was administered (e.g., unproctored setting, accommodated test conditions) should be shared with the test user. and also, organizations should decide what records of assessment administrations and scores are to be maintained and should provide detailed information regarding record keeping and databases (or should reference that detailed information). references 1. wickramasinghe, v., & chathurani, m. (2020, november 11). effects of continuous improvement in streamlining hrm practices. business process management journal, 27(3), 883–900. [2]https://doi.org/10.1108/bpmj-03-2020-0130 2. karasek, a. (2019, october 25). the use of information technology in human resource management in american enterprises. annales universitatis mariae curie-skłodowska, sectio h – oeconomia, 53(2), 37. 3. https://doi.org/10.17951/h.2019.53.2.37-44 4. dmour, r. h. a., ra’, n., masa’, e., deh, n., & obeidat, b. y. (2017). factors influencing the adoption and implementation of hris applications: are they similar? international journal of business innovation and research, 14(2), 139. https://doi.org/10.1504/ijbir.2017.086276 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.1108/bpmj-03-2020-0130 https://doi.org/10.17951/h.2019.53.2.37 https://doi.org/10.17951/h.2019.53.2.37-44 https://doi.org/10.17951/h.2019.53.2.37-44 https://doi.org/10.17951/h.2019.53.2.37-44 https://doi.org/10.1504/ijbir.2017.086276 https://doi.org/10.1504/ijbir.2017.086276 american journal of business management, economics and banking volume 26 july 2024 p a g e | 22 www.americanjournal.org 5. chapman, d. s., & webster, j. (2003, june). the use of technologies in the recruiting, screening, and selection processes for job candidates. international journal of selection and assessment, 11(2–3), 113–120. 6. https://doi.org/10.1111/1468-2389.00234 7. harver.com 11 effective employee selection methods to implement today 8. ackerman. p.l1989 whithin-task intercorrelations of skill performance implications for predicting individual differences ( a comment on henry and hulin,1987) 9. d. greenidge, p. alleyne, b. parris, s. grant, , “a comparative study of recruitment and training practices between small and large businesses in an emerging market economy: the case of barbados”, journal of small business and enterprise development, 19(1), pp. 164-182, 2012. 10. m. carroll, marchington, m., earnshaw, j., taylor, s., “recruitment in small firms: processes, methods and problems”, employee relations, 21(3), pp. 236-250, 1999. 11. c. tanova, “firm size and recruitment: staffing practices in small and large organisations in north cyprus”, career development international, 8(2), pp. 107-114, 2003. 12. b. schneider, d. b. smith, personality and organizations. psychology press, 2004, pp. 151-168. 13. d. cooper, i. t. robertson, g. tinline, recruitment and selection: a framework for success, cengage learning emea, 2003, pp. 109-118. https://doi.org/10.1111/1468 https://doi.org/10.1111/1468-2389.00234 https://doi.org/10.1111/1468-2389.00234 https://doi.org/10.1111/1468-2389.00234 american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 99 www.americanjournal.org feminist theory and gender dynamics in central asian societies (2017-2023) nazarillaeva mekhrangiz political science university of world economy and diplomacy 62502055380015 nazarovamexrangiz582@gmail.com a b s t r a c t k e y w o r d s a perspective through which such a complex sociocultural and political environment may be viewed and contextualized has to incorporate, by necessity, feminist theory when peering into the dynamics within central asian societies. indeed, central asia comprises such countries as kazakhstan, kyrgyzstan, tajikistan, turkmenistan, and uzbekistan-each with their diverse history and traditions shaped by the legacy of the soviet union, along with growing trends arising from global feminist movements. this paper draws on feminist theoretical frameworks that emphasize the persisting challenges alongside emerging opportunities for gender equality: intersectionality, postcolonial feminism, state feminism, and global feminism. it explores the gendered experiences of women in the region. introduction in central asia, gender dynamics are shaped by deeply entrenched patriarchal norms, compounded by socio-economic, ethnic, and geographical disparities. women in rural areas face disproportionate barriers to education, healthcare, and employment, often exacerbated by ethnic discrimination. for example, rural women of tajikistan and ethnic minority women of kazakhstan and kyrgyzstan are the victims of an intersectional disadvantage that decreases their chances of upward mobility. central asia is indeed profoundly soviet in terms of gender norms. during the soviet era, women were pushed into the workforce and into educational institutions through state-mandated equality policies. while these policies did much to expand women's public roles, they often disregarded local cultural and religious contexts. in the post-soviet period, traditional gender roles have been reclaimed and reinforced by the governments of the region, especially in turkmenistan and uzbekistan, as a way of affirming national identity. this aspect of postcolonial feminism would critique the imposition of such top-down policies and underline tensions between externally driven modernization and the preservation of indigenous traditions; a revived stress on women's role as cultural carriers is especially evident in the countryside. state feminism legal reforms also witness some progress on paper for the purpose of reducing gender-based inequalities, though their application highly varies. for instance, american journal of business management, economics and banking volume 33 february 2025 p a g e | 100 www.americanjournal.org kazakhstan and kyrgyzstan have passed laws that would tackle domestic violence and equality in the workplace. in addition, the mechanisms for the implementation of these enactments, when it exists at all, along with slender financing and even opposition from conservative quarters, substantially impairs their impact. global feminism has also shaped central asian gender activism, especially in the urban centers. in kazakhstan and kyrgyzstan, for example, local women's rights organizations increasingly work with transnational networks on issues ranging from gender-based violence to political underrepresentation. social media has turned into a strong tool for amplifying feminist voices, fostering new waves of digital activism across the region. international feminist movements seldom affect them due to overwhelming government restrictions, apart from cultural resistances in both turkmenistan and uzbekistan, since the civil society is not free. in turn, the digital sphere has emerged as an essential tool of grassroots activism in resistance to patriarchal attitudes and for claiming more gender equality at workplaces and in political life. however, the influence of global feminist movements is still distributed unevenly, and turkmenistan and uzbekistan remain very restrictive in terms of state policy and cultural conservatism toward the activities of civil society organizations. by applying these different feminist theories, this paper tries to analyze the interplay of socio-political and cultural factors that determine gender dynamics in central asia. it provides an understanding of how regional and global initiatives can be combined toward the realization of more inclusive and equal societies, taking into consideration systemic obstacles to women's participation and the contribution of feminist movements to their elimination. this paper emphasizes the importance of adopting context-sensitive approaches to advocacy that respect local tradition while campaigning for universal principles of equality. the examination of gender dynamics in central asia not only underlines the unique challenges faced within this region but also contributes to broader discussions on the applicability of feminist theories across diverse cultural contexts. it is here that the challenge of balance facing central asian societies-between tradition, state policies, and global feminist influences-understands these dynamics as a vital constituent of any sustainable progress on gender equality. theoretical framework it gives the principal lens with which to examine gender relations and social structures that guide the investigation of roles and rights of women. feminist theory enables the analysis of intersections of the soviet union policy legacy, contemporary political systems, and local cultural practices that together shape the parameters within which gender relations are enacted in central asia. these changing feminist movements in the region have to navigate an increasingly complex terrain that is filled with traditional norms on gender, rising nationalism, and globalizing ideals about feminism. the framework has important implications for understanding the complexity surrounding the issue of gender equality in the region and sets the basis for the analysis contained in this report. intersectionality is one of the striking features of feminist theory and tries to explain how other social variables like race, class, religion, and nationality inform gender oppression. issues related to gender inequalities in central asia also intertwine with ethnicity, religion, and socio-economic status, therefore making considerations of multiple and intersecting forms of discriminations faced by women imperative. american journal of business management, economics and banking volume 33 february 2025 p a g e | 101 www.americanjournal.org the un women report1 on gender equality in central asia shows how an intersectional approach does shape experiences for women, especially for those coming from far-flung areas that are at the receiving end of various layers of exclusion to social services, all the way up to political participation. thus, an intersectional approach is the basis on which analysis of the differential operation of gender oppression among diverse women forms a much-informed analysis of the gender landscape in central asia. while noting women's political and labor participation in kazakhstan have increased since the country declared independence, according to the national statistics agency of kazakhstan2, tensions remain palpable between the efforts taken by state authorities to fight for gender equality and traditional cultural attitudes that circumscribe the rights of women. the tensions between all of these interests make clear that feminist perspectives are needed here that could take into account both the global ideal of feminism and the local traditionalism along with the influences of postcolonialism. state feminism refers to the role that a state plays in either facilitating or hindering gender equality with its policies, laws, and institutional frameworks. throughout post-soviet central asia, states have all adopted gender equality policies, although their implementation has been highly uneven, with varying levels of commitment to gender reforms. yet, despite formal commitments to gender equality under various international conventions, such as the convention on the elimination of all forms of discrimination against women, problems continue to persist in the effectiveness and implementation of such policies the thinking and practice of central asian feminism are influenced by global feminism and transnational feminist movements, largely with the use of digital platforms that enable cross-border solidarities. however, there is usually tension between the global feminist imperatives and the cultural, religious, and political realities of central asia. feminist movements must navigate these global principles within their particular socio-political contexts and balance demands for women's rights with respect for local traditions. a 2021 report on gender and health by the world health organization3 brings to the fore the influence of the global feminist movement on sexual and reproductive rights, especially in women's health and family planning services within central asia. it further notes that cultural resistance from the conservative religious sectors generally leads to the sidelining of such global feminist objectives this feminist theory includes the theories of intersectionality, postcolonial feminism, state feminism, and global feminist movements that provide a robust framework through which to analyze complex gender dynamics in central asia. the theoretical framework combined both governmental and international sources in its understanding of the gender landscape of the region. the intersection of local traditions, soviet legacies, and global feminist movements requires an intricate approach to gender equality whereby feminist activism in central asia would be locally informed but globally aware. 1 un women. (2022). gender equality and social change in central asia. un women. 2 national statistics agency of kazakhstan. (2021). gender equality in kazakhstan: statistics and policy recommendations. 3 who. (2021). health and gender equality in central asia. world health organization. american journal of business management, economics and banking volume 33 february 2025 p a g e | 102 www.americanjournal.org background feminism is a many-sided social and political movement, aside from being an intellectual tradition, that seeks to achieve gender equality. it aims at securing the political, economic, social, and cultural rights of women, while challenging the patriarchal structures that nurture discrimination and inequality. the goal of feminism is to change these structures in order to make a more just society. feminists and feminist activists work to change societal norms and practices, which limit women's choices and perpetuate their subordination. this includes fighting against inequitable pay, access to education and health care, and combating gender-based violence and discrimination. feminism has come to emphasize the need for respect and recognition of experiences and identities of women, keeping in mind the racial, class, and sexual differences.4 it calls for the rights of all women, regardless of ethnicity, social status, or sexual orientation, in the struggle for equality, solidarity, and mutual support. the most central aim of feminism is equal opportunity and fair treatment for all persons, irrespective of their gender. it seeks the creation of a society wherein all individuals can fulfill their potential and live without fear of discrimination and oppression. feminism has played a very important role in this aspect of striving for gender equality and justice around the world. feminism in central asian countries has unique challenges and opportunities due to cultural, historical, and social factors of the region. within the post-soviet central asian countries of kazakhstan, uzbekistan, kyrgyzstan, tajikistan, and turkmenistan, the women's movement is evolving within the environment of transition from socialism to other political and economic systems and amidst high levels of economic instability, strong patriarchal traditions, and islam. thus, feminist organizations and activists in central asia are coming together in the region to respond to inequalities in gender-based violence, lack of access to education and healthcare, and lack of political representation. they seek to challenge deep-seated cultural norms that deny women specific rights and opportunities.5 on the bright side, some countries in the region have seen good development toward gender equality. thus, kazakhstan and kyrgyzstan host active feminist movements and ngos that, through human rights campaigns, educational programs, and political action, are pushing for change. in other countries like turkmenistan, however, feminism is subjected to very tough state oppression and restrictions. central asian feminism has pointed out the fact that international support and solidarity are needed, and last but not least, adjustment of feminist ideas to suit local cultural and social context. the movements in women's movements within the region aim at a society with equal rights and opportunities for everybody, irrespective of their sex.6 4 abazov, r. (2021). gender dynamics in central asia: historical legacies and contemporary challenges. central asian studies review, 12(3), 67-85. 5 kudaibergenova, d. t. (2019). toward national feminism: women's activism in kazakhstan and kyrgyzstan. post-soviet affairs, 35(2), 123-145. 6 nasritdinov, e., & esenova, s. (2023). digital feminism in kyrgyzstan: mobilizing women through online platforms. journal of feminist studies in eastern europe, 15(1), 87-102. american journal of business management, economics and banking volume 33 february 2025 p a g e | 103 www.americanjournal.org first wave first-wave feminism in central asia was heavily influenced by the early 20th-century soviet policy aimed at changing the traditional structure of society to usher in gender equality. thus, the soviet regime embarked on women's liberation, including campaigns against veiling and seclusion. in an effort to do so, there came about the hujum campaign, begun in 1927, with an emphasis on eradicating veiling among muslim women. this campaign was part of the broader effort to modernize and secularize central asian societies, to mobilize women into public life and the labor force.7 these initiatives, however, were frequently opposed by locals, who saw them as an intrusion into the ways of life and religious expression of their respective cultures. the campaigns that were waged, like hujum, were often so aggressive that the people indeed reacted against what they saw as imposition upon their lives. second wave the second branch of the women's movement, known as women's liberation, arose from a rebellion of these civil rights and new left women. it developed a style, constituency, and politics different from those of now: these women were younger, mostly in their twenties, and less professional; they insisted on woman-only, autonomous groups; and they were radical in the sense of working for structural change and skeptical that conventional politics could achieve it. women's liberation sought not just to redistribute wealth and power in the existing society, but to challenge the private as well as the public, the psychological as well as the economic, the cultural as well as the legal sources of male dominance. emerging from male-dominated grassroots social justice movements, women's liberation groups formed in 1967 and 1968, and soon attracted women without previous activist experience.8 this movement's most important organizational and theoretical contribution was consciousness raising (cr), a form of structured discussion in which women connected their personal experiences to larger structures of gender. through cr women developed the understanding that many of their "personal" problems insecurity about appearance and intelligence, exhaustion, physical and sexual abuse were not individual failings but a result of discrimination. these discussion groups, usually small, sprung up throughout the country among women of all ages and social positions, and they were simultaneously supportive and transforming. women formed these groups by the hundreds, then by the thousands. mentions of the women's movement in the national press increased ten times in the ten months from may 1969 to march 1970. third wave this new third wave of feminism, emanating throughout the 1990s and extending into the 2000s and 2010s, is inextricably linked with the changed social, political, and economic scenery within central asia subsequent to the dissolution of the soviet union. the third wave of feminism unlike the two previous waves, deeply informed by state-driven policies within soviet rule, central asian third wave feminism focuses on the search for identity-building both on an individual and collective basis in the newly independent states. it also consists of increased use of international feminist discourses, mainly 7 abashin, s. (2020). soviet modernization and its impact on central asian women. central asian studies review, 18(4), 45-61. 8 tong, r. (2009). feminist thought: a more comprehensive introduction (3rd ed., pp. 414–415). westview press. american journal of business management, economics and banking volume 33 february 2025 p a g e | 104 www.americanjournal.org that of intersectionality, set in post-soviet transition with religious conservatism and the formation of national identities. while the dissolution of the soviet union meant a lot to the countries of central asia-independencesome of them faced serious new challenges: issues regarding gender equality, economic instability, and growing nationalism. the 3rd wave of feminism became a part of this complicated political and social arena-women struggled with not only legacies of soviet policies and pressures to navigate traditional gender roles, but also were influenced by islam and the local culture. women began to claim their voices back, starting to speak not only of traditional gender roles but also of equal opportunities in education, employment, and political leadership. central asian feminism of the period also focused on women's rights within new, independent nation-state frameworks. besides, feminists started to contradict the traditional image of women as passive victims who were merely benefiting from the soviet politics coming from above. this rise in nationalism and islamic conservatism in general, as kamp discussed above 2017, has come along with big challenges faced by feminist movements within central asia. today, central asian feminism is the continuous struggle for equality, freedom, and the right to selfidentification in a rapidly changing world.9 fourth wave in this sense, the communication space opened in the last decade by young bloggers and twitters constitutes what munro has called “hashtag feminism”, or feminism of the fourth wave, based on the “culture of call-out”, which has been able to radically question the misogynist and sexist culture that pervades both public communication and the microphysics of everyday relationships in the experience of each one, in which the speech is immediately political and recognizable by all. without ignoring the doubts raised by many parties, both internationally and locally, on the risks of prêt-à-porter justicialism, the emergence of a new form of puritan moralism, and the risks of the raising of new forms of feminist punitivism, what emerges is the profound interconnection between the feminist political texture and its form of communication, the codes it uses and the relationships it manages to redevelop. in other words, of course, media is not neutral or neutralizable, but deeply situated in a field of conflict. hashtag feminism, with its intersectional, intergenerational, and transnational attitude, opened the way to a new questioning of the relationship with the law, the state, and citizenship rights. as the opposition to the ban on abortion mobilized women in poland in order to prevent the approval of the prohibitionist bill and in south america women struggled to make the parliaments approve constitutional amendments and laws in favor of free reproductive choice for all women, the international strike radically questioned the sexual nature of the capitalistic exploitation of women, and the hashtag movements moved the risk of slipping into a punitive drift to the cultural, economic, social and political field, claiming selfdefense and solidarity instead of the state’s protection. in this direction goes the paper of martins, which analyses several hashtag campaigns launched since 2015 in brazil against sexual harassment, gender-based violence, and the “naturalized representation of white masculinity” symbolized by the election of bolsonaro in 2018. martins, on one side, analyses the non-neutrality of the “call-out” feminist technopolitical mobilizations, which avoided the classical 9 kamp, m. (2017). the new woman in the soviet union and central asia: a historical study of gender, politics, and the changing role of women. routledge. american journal of business management, economics and banking volume 33 february 2025 p a g e | 105 www.americanjournal.org (feminist) criminological individualization of victimhood by focusing on vulnerability as a “socially shared condition” and constructing a collective conscience from a victim. moreover, the campaigns aimed to overcome criminalization and the risk of a punitive drift, by creating connections between women and tools for mutualism, solidarity and trans-feminist alliances. these became the grounds for the massive movement #elenao against not only the election of bolsonaro, but the neoliberal and heteropatriarchal violence he represents(ed).10 gender dynamics complexity central asia is an integral part of kazakhstan, kyrgyzstan, tajikistan, turkmenistan, and uzbekistan. it presents a complex landscape for gender equality. in addition, feminist theories, including those on intersectionality, postcolonial feminism, state feminism, and global feminism, help to explain the regional gender dynamics. its rich cultural history, soviet legacy, and post-independence challenges have created a complex context for feminist movements. empirical evidence: in central asia, gender inequality cannot be regarded in isolation from other factors like ethnicity, socio-economic status, geography, and religion. of course, women in the countryside are in a worse situation compared to city women. in addition to their low access to education and low employment, ethnic minorities in kazakhstan and kyrgyzstan face broader discrimination because of their ethnic status, represented by the uzbeks and the karakalpak’s. postcolonial feminism provides insight into how the governments of post-soviet central asia have resuscitated patriarchal interpretations of gender roles and positioned women as emblems of cultural authenticity while at the same time circumscribing their involvement in public space and political life. soviet legacy can still be seen in how gender roles are perceived and enacted today in central asia. soviet policies encouraged women to engage in employment and higher education, but their programs were frequently insensitive to the local culture and religious expression. the majority of central asian countries have moved after independence to meld together the soviet-era policies regarding gender with renewed nationalism and a more conservative approach. for example, in turkmenistan and uzbekistan, there has been an islamic conservative revival where women are generally relegated to traditional positions, and the turn to nationalism is most energetic in uzbekistan where women are increasingly seen as playing the main role in preserving cultural identity while kazakhstan and kyrgyzstan have much less resistance to women in public life. it looks critically upon the imposition of alien structures and frameworks, such as soviet gender policies, on indigenes. ever since independence, central asian countries like turkmenistan and uzbekistan have grappled with how to balance soviet gender equality with their religious and national values. the reassertion of traditional women's roles, in particular, has been associated with the countryside as a means of maintaining national identity. postcolonial feminism provides insight into how the governments of post-soviet central asia have resuscitated patriarchal interpretations of gender roles and positioned women as emblems of cultural authenticity while at the same time circumscribing their involvement in public space and political life. several central asian governments have in the recent past carried out various legal reforms, presumably aimed at achieving better gender equality. for example, kazakhstan has pursued policies for greater women's education and employment. nevertheless, most such legal 10 peroni, c., & rodak, l. (2020). introduction: the fourth wave of feminism: from social networking and selfdetermination to sisterhood. oñati socio-legal series, 10(1s), 1–9. american journal of business management, economics and banking volume 33 february 2025 p a g e | 106 www.americanjournal.org changes often fail to actually provide real-life benefits to the citizens, particularly women in the rural countryside. kyrgyzstan passed a law in 2020 against domestic violence, but implementation has been problematic due to a lack of resources and police training, along with societal tolerance for patriarchal norms. in the case of tajikistan, some policy efforts have been initiated to address gender equality, but these are poorly implemented in rural areas where women face both social and economic marginalization. state feminism refers to the role of the state in advancing gender equality through legislation and policy11. while there are formal commitments to gender equality, the actual implementation of such policies is weak and, moreover, especially weak in rural areas. there is much domestic violence and sexual harassment that the governments are late to attend to. despite the problems being more and more recognized, traditional societal attitudes about gender roles drive the policy environment. global feminist movements have increasingly set an agenda for the gender discourse in central asia. women's rights groups in kazakhstan and kyrgyzstan have joined global networks to combat gender-based violence and advance women's political participation. digital activism, especially via social media platforms, has enabled women to speak out against discrimination and violence in these two countries. nevertheless, global feminism faces opposition in the traditional value settings of a nation and the barriers a government imposes on civil society. in turkmenistan and uzbekistan, more controlled civic spaces present obstacles to the free and full operation of women's organizations. global feminism brings domestic violence, workplace inequality, and underrepresentation of women in politics to the forefront. global feminist movements, generally, hardly affect central asia due to rigid state control and conservative attitudes towards women's rights.12 the international drive for gender equality has, for example, instituted several positive legal changes both in kazakhstan and kyrgyzstan, yet such movements often contradict local perceptions of women's roles in society. the gap between international feminist ideals and local realities underlines how global feminist movements have to work closely with local actors in reimagining their approaches. conclusion from a feminist perspective, an analysis of gender dynamics in central asia suggests a region of turmoil and struggle consequent upon very deep-rooted cultural, social, and political problems. using frameworks such as intersectionality, postcolonial feminism, state feminism, and global feminism, this article demonstrates that such challenges may be multilevel in nature and molded by the interaction both between traditional and soviet legacies and influences of globalization. these frameworks not only light up the structural inequalities that remain across central asia but also offer ways to address them. intersectionality shows how such intersecting factors as ethnicity, socio-economic status, and geography increase gender inequalities, especially for rural and minority women. such accumulation of disadvantages in tajikistan, uzbekistan, and elsewhere underlines the relevance of nuanced and targeted interventions which may affect such specifically marginalized groups. this thought is further deepened by postcolonial feminism, critiquing soviet-era imposed policies on gender equality without consideration for local traditions. the return of traditional attitudes during the post-soviet era, 11 snyder, r. (2020). state feminism in central asia: policies, implementation gaps, and the role of civil society. central asian studies journal, 34(2), 120-135. 12 global fund for women. (2022). transnational feminism in central asia: advancing women’s rights in uzbekistan. american journal of business management, economics and banking volume 33 february 2025 p a g e | 107 www.americanjournal.org especially in turkmenistan and uzbekistan, underlines how culturally driven the construction of gender has been. state feminism has indeed appeared quite promising in introducing progressive legal frameworks, such as anti-domestic violence laws in kyrgyzstan and gender equality policies in kazakhstan. however, deeply entrenched patriarchal attitudes, resource shortages, and weak mechanisms of enforcement mean that the actual practice is often incomplete. such a disjuncture of policy and practice underlines the important role of civil society and grassroots activism to bridge this gap and bring about substantial change. in its invaluable support and transnational networks, global feminism often becomes limited in many cases in the region to state control and cultural conservativism, such as turkmenistan and uzbekistan, where feminist voices may hardly be able to push through. digital activism on the rise and engagements of local women's organizations into international movements create expectations of continued progress for the future of gender equality. what will finally help achieve gender equity in central asia is an approach sensitive to context, respectful of the local cultural values, yet addressing the systemic inequalities. policies and initiatives are to be designed keeping in mind the peculiar socio-economic and cultural features of the region. this shall be done through voices and experiences from the women themselves. such a sustainable development will require collaboration between governments, civil society, and global organizations for its nurturing. it is for this reason that the position places feminist theory at the center, making it the most powerful tool of explanation and agent of change within the character of gender dynamics in central asia. by situating the challenges within the broader theoretical framework of the region, not only has one underlined a number of different barriers to attaining gender equality, but inspired strategies for overcoming those very same barriers. it is a complex, multilevel road to equality in central asia; this informed, intersectional, culturally attuned effort will shift the region closer toward that future where gender equality would be the goal, but it will become a reality. references: 1. un women. 2022. gender equality and social change in central asia. un women. https://www.unwomen.org/en/countries/asia-and-the-pacific/central-asia 2. national statistics agency of kazakhstan. 2021. gender equality in kazakhstan: statistics and policy recommendations. http://stat.gov.kz 3. who. health and gender equality in central asia. world health organization. 2021. https://www.who.int/central-asia/gender 4. abazov, r. (2021). gender dynamics in central asia: historical legacies and contemporary challenges. central asian studies review, 12(3), 67-85. gender dynamics in central asia 5. kudaibergenova, d. t. (2019). toward national feminism: women's activism in kazakhstan and kyrgyzstan. post-soviet affairs, 35(2), 123-145. kazakhstan and kyrgyzstan 6. nasritdinov, e., & esenova, s. (2023). digital feminism in kyrgyzstan: mobilizing women through online platforms. journal of feminist studies in eastern europe, 15(1), 87-102. 7. abashin, s. (2020). modernization by the soviet state and its consequences for the women of central asia. central asian studies review 18(4), pp. 45-61. 8. tong, r. (2009). feminist thought: a more comprehensive introduction, 3rd ed., pp. 414–415, westview press. https://books.google.co.uz/books?id=gc8rwfvutfmc https://www.unwomen.org/en/countries/asia-and-the-pacific/central-asia http://stat.gov.kz/ https://www.who.int/central-asia/gender file:///c:/users/user/desktop/gender%20dynamics%20in%20central%20asia https://books.google.co.uz/books?id=gc8rwfvutfmc american journal of business management, economics and banking volume 33 february 2025 p a g e | 108 www.americanjournal.org 9. kamp, m. (2017). the new woman in the soviet union and central asia: a historical study of gender, politics, and the changing role of women. routledge. https://www.routledge.com/the-newwoman-in-the-soviet-union-and-central-asia/kamp/p/book/9780367334235 10. peroni, c., & rodak, l. (2020). introduction: the fourth wave of feminism: from social networking and self-determination to sisterhood. oñati socio-legal series, 10(1s), 1–9. the fourth wave of feminism 11. snyder, r. (2020). state feminism in central asia: policies, implementation gaps, and the role of civil society. central asian studies journal, 34(2), 120-135. 12. global fund for women. (2022). transnational feminism in central asia: advancing women's rights in uzbekistan. https://www.globalfundforwomen.org https://www.routledge.com/the-new-woman-in-the-soviet-union-and-central-asia/kamp/p/book/9780367334235 https://www.routledge.com/the-new-woman-in-the-soviet-union-and-central-asia/kamp/p/book/9780367334235 file:///c:/users/user/desktop/the%20fourth%20wave%20of%20feminism file:///c:/users/user/desktop/the%20fourth%20wave%20of%20feminism https://www.globalfundforwomen.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 9 www.americanjournal.org problems of assessing business value in modern conditions khomitov k. z. professor of tsui mobile:90-187-49-55, email: metro8369@gmail.com a b s t r a c t k e y w o r d s modern conditions determine the mutual exchange of property and the need to form clear conditions for assessing the value of assets. the value of a business is an important assessment indicator that provides an objective assessment and reduces the likelihood of disputes. any financial transaction, whether it is an investment, the sale of assets or management decisions, operations related to a mortgage or inheritance, requires the conduct of an assessment process. this article examines the features of assessing the value of a business and develops approaches to implementing this process. business, enterprise as a property complex, value, valuation, income, cash flow, profit, approach, method, cost approach, comparative approach, income approach. introduction in developed countries, business and private entrepreneurship have been proven in practice to be an important factor in achieving socio-economic stability in society, especially its level of capitalization. in the context of market reforms, the government of uzbekistan has implemented a number of measures to develop business and private entrepreneurship, as a result of which the share of business and private entrepreneurship in gdp increased by 51.8% in 2023, and more than 77% of the total employed population is engaged in this sector. the analysis shows that there are a number of problems in the development of business and private entrepreneurship. this situation is manifested in the inability of business entities to adequately organize their activities in accordance with the requirements of market economy laws, low economic efficiency, and still high levels of control by state regulatory bodies. entrepreneurial activity is the basis of effective business development, economic freedom and growth under the control of the law. the state's policy of developing entrepreneurship requires identifying existing problems in increasing business entrepreneurial activity, analyzing the criteria for assessing activity, and conducting in-depth research on entrepreneurial activity as an important lever for the development of a market economy. also, in the economic literature, there is a lack of comprehensive scientific works devoted to determining the effectiveness of enterprise activities, assessing entrepreneurial activity, especially the criteria for assessing the value of a business (enterprise) as a property complex. american journal of business management, economics and banking volume 33 february 2025 p a g e | 10 www.americanjournal.org solving these tasks requires the analysis of the activities of business enterprises and the laws of their development, the assessment of entrepreneurial activity and the value of business for various purposes, taking into account the characteristics of world practices, and the need to conduct scientific research devoted to its future development. in modern conditions, assessing the value of a business (an enterprise as a property complex) is of particular importance, as it is of great importance for various participants in financial relations when making management decisions, lending, investing, transferring ownership rights and (or) renouncing them at the expense of another person, merging and acquiring. literature review the specific features of the application of valuation procedures in modern conditions are that the transfer of investments or property rights on a paid or free basis is based, first of all, on the assessment of a specific property (business, project, enterprise, etc.). and currently, in various sources, much attention is paid to the analysis of the problem of using practical approaches to assessing the value of a business. in the works of domestic and foreign authors, this analysis is often carried out in the context of using standard valuation methods. in foreign scientific literature, great attention is paid to this issue by u. sharp, a. damodaran, t. koller, t. coupland, f. modigliani, j. stewart, and others [1–6]. various aspects of business valuation have been studied by both cis and domestic scientists, among whom the leaders are a. brodunov, s. valdaysev, v. esipova, p. krush, g. makhovikova, e. spiridonova [7–11], a. kravchenko, sh. shoha'zamiy, k. khomitov [12–14] and others. despite the fact that the issue of business (enterprise) value assessment has been studied in detail by scientists and scientific schools from different countries [1–14], and in practice, already established tools are increasingly used, recently there have been enough questions about finding more effective methods of assessment. in this article, the author tried to identify an effective method of business value assessment, taking into account the problems identified as a result of using standard assessment methods. research methodology in the course of the research, the features of international practice in business valuation, their role in the economy, the works of foreign and domestic scientists were studied and analyzed. the article effectively used methods such as theoretical observation, systematic approach, observation, generalization, analysis, synthesis, and also formulated conclusions and proposals on the problems of business valuation and their solutions. analysis and results in modern conditions, there is a need to further improve methodological tools for assessing the value of business entities, which is explained by the turbulent environment of companies, significant uncertainty in the forecast values of the economic parameters of companies' activities, and serious shortcomings in existing valuation methods. at the present stage, the problem of the lack of a comprehensive balanced approach to assessing the value of business entities operating in various organizational and legal forms has not been sufficiently resolved. in uzbekistan, the use of income, cost and comparative approaches is legally consolidated on the basis of the unified national valuation standard, and each of them provides for the assessment american journal of business management, economics and banking volume 33 february 2025 p a g e | 11 www.americanjournal.org of the value of the business based on current data. at the same time, none of them takes into account indicators of other time scales, including indicators for predicting a possible increase or decrease in activity, and the company's previous achievements. the developed approaches are sufficiently adapted for practical use in assessing the value of companies, but modern changes in socio-economic conditions, recent and current economic crises and their consequences require their improvement and appropriate adjustments. despite the achievements of foreign and domestic scientists, scientific and practical research and analysis on the use of conceptual approaches in assessing the value of businesses remain relevant. it is worth highlighting three main approaches to assessing the value of a strategic business unit (in particular, an enterprise): revenue, cost, and comparative. the valuation of an enterprise using the income approach is the determination of the value of future income arising from its commercial activities and, if possible, its subsequent sale. thus, the valuation of an enterprise from the perspective of the income approach largely depends on how prospective it is assessed, that is, in essence, the ability of the valuation object to generate positive cash flows in the future as a result of its intended use is assessed [7, p. 65]. one of the main problems that arise when using the income approach is the forecasting of future income. in order to calculate the value of the amount within the framework of this approach, it is important to obtain sufficiently accurate (reliable and reasonable) information about the future income of the enterprise, which creates certain difficulties in practical application. the use of this approach allows you to more fully take into account the target amount of value corresponding to the indicators of economic and social development of the country as a whole. since all business entities have sufficiently regulated accounting and automation systems for their activities, and their reports are often checked by both auditors and relevant government agencies, the use of the income approach is based on a well-structured and verified database. this, in turn, makes the results obtained reasonable and objective. the main methods of this approach are the discounted cash flow method (indirect capitalization method), the income capitalization method (direct capitalization method) and the economic value added method. the advantages of the income approach to valuing a business are that it has the real ability to assess the value of a business (enterprise) based on the quality of current financial indicators, the possibility of future earnings, and an indirect comparison of activities with analogues. however, there are a number of factors that complicate the use of this approach. at the heart of many of them is the problem of predicting key elements of the assessment, such as: – medium or long-term (5-6 years or more) forecasting; – forecasting the value of non-core and non-operating assets, as well as their working capital to make corrective adjustments [7, p. 65]; – calculating the return on capital, especially determining the alternative cost of capital, etc. the income approach describes the ability of an enterprise to generate future profits and the present value of an object based on expected future income. the cost approach, unlike the income approach, considers the value of an asset today in terms of the costs incurred to create it in the past. the essence of the cost approach is that the enterprise is valued as a property complex used to carry out commercial (production, trade, etc.) activities. at the same time, its value is determined by reevaluating the resources spent on creating this business, that is, the costs already incurred are estimated. american journal of business management, economics and banking volume 33 february 2025 p a g e | 12 www.americanjournal.org to calculate the value using the cost approach, balance sheet data as of the valuation date is used. the most common methods of the cost approach include the net asset method and the liquidation value method. the features and advantages of the cost approach lie in the ability to estimate the book value of an economic entity, regardless of the profitability of its activities. this is usually due to the availability of reliable data for calculations, as well as the use of cost methods traditional for the local economy to assess the value of the business. however, on the other hand, when the enterprise's activities are accelerating, that is, when things are starting to go well, it is considered incorrect to use only retrospective, that is, valuation methods based on old data, without taking into account development prospects and future cash flows. the comparative approach involves analyzing the purchase and sale prices of similar items, with appropriate adjustments for differences between the comparison items and the valuation item. the main advantage of the comparative approach is that it is the easiest to use and statistically sound, since it is based on the current market value of real-life valuation objects, which provides reliable data suitable for use in other approaches. the main limitation in applying this approach is the mandatory presence of an active market. among the disadvantages, this approach requires adjustments, many of which affect the reliability of the results. in addition, the data are not always comparable. in addition, the use of a comparative approach is possible only if complete financial information is available not only for the company being valued, but also for its analogues selected by the appraiser in the analysis process. information on transactions between legal entities in the country that could serve as a basis for comparison is often not available. the actual price and terms of transactions are often known only to insiders [15, p. 132]. the objectivity and relevance of the comparative approach are based on the principle of substitution (the presence of an equivalent substitute), according to which the value of the business (enterprise) being valued should not exceed the value of another existing valuation object with similar characteristics. this approach can be further considered in a broader sense, taking into account the characteristics of the activities of the enterprise being valued and adjustments to the market value of all similar enterprises, that is, in the situation where they are currently available for purchase and sale for full or partial ownership. the fundamental difference between these concepts is the identification of two important features in the latter version: taking into account the complete uniqueness of the business of the assessed object and the ownership of it (full or partial). depending on the type of economic relationship on which the value of market analogues is based, the following main methods of the comparative approach are distinguished: the closed transaction method and the quotation method (analogous company method). these methods are based on comparing the value of similar property, which is determined in closed type contracts or is determined on the basis of quotations of the company's shares on the open market during a merger or acquisition, the purchase of significant blocks of shares, etc. [5, p. 126]. at the same time, most approaches to valuing a business (enterprise) are based on static indicators, which do not provide complete information about the growth rate of the enterprise and cannot determine its real market potential, future activity or profit from sales. to increase the objectivity of business valuation, in particular, it is proposed to use an integrated value indicator, the calculation of which is based on the principles of income and cost approaches, which american journal of business management, economics and banking volume 33 february 2025 p a g e | 13 www.americanjournal.org allows taking into account a much wider database. this indicator can be calculated using the following formula: (1) here, ipv -integrated business value indicator; fr n– financial result (net profit) for the reporting period n; i – growth rate of financial result; a– carrying amount calculated using cost approach methods; d – dynamics of financial results. the use of the income approach in this formula is based on the use of a method that takes into account the growth rate of financial results, which can be determined as follows: (2) here, frn-1financial result (net profit) of the previous period (n – 1). this allows you to expand the scope of valuation objects and makes it more convenient to determine the value of the enterprise being analyzed. the proposed approach to determining the value of a business (enterprise) allows you to combine the results obtained by various valuation methods and take into account the dynamics of the company's development, which makes the valuation result more objective. the positive aspects of this method include: – a comprehensive approach to assessing the value of a business (enterprise); – taking into account the effectiveness of business (enterprise) activities; – taking into account social phenomena such as expected changes and trends in business (enterprise) development. the disadvantages include: – the results of comparing the business (enterprise) under study with its analogues are not taken into account; – there are difficulties in finding reliable and sufficient information. conclusion/recommendations in conclusion, it can be noted that although the proposed methodology does not take into account the results of the comparative approach, it can be used as one of the methods for determining the market value of a business entity. the main point is that the proposed tool for assessing the value of a business can be adjusted as needed and applied to various sectors of the economy. one of the positive features of the integrated indicator is the possibility of reformulating it by changing its income component. for example, replacing the gordon formula with the net present value of cash flows or discounted operating income. the expectation coefficient, as mentioned above, implies adjusting the value of the company depending on the dynamics of the enterprise's performance indicators, that is, predicting possible future changes american journal of business management, economics and banking volume 33 february 2025 p a g e | 14 www.americanjournal.org and, therefore, possible potential based on extrapolation. this means that this indicator can be used to assess the competitiveness and investment attractiveness of a business entity. references 1. sharp w., alexander g., bailey d. investitsii [text] / u.sharp, g.alexander, d. bailey. m.: infram, 2014. – 786 p. 2. damodaran, a. damodoran on valuation. security analysis for investments and 109 corporate finance. john wiley & sons, inc., 2005. 410 r. 3. koller t., goedhart m., wessels d. valuation: measuring and managing the value of companies. john wiley & sons, inc., 2005. 730 p. 4. copeland t. stoimost kompaniy: otsenka i upravlenie / per. english 3-e izd., pererab. i dop. m.: olimp-business, 2005. 576 p. 5. modigliani f., miller m. the cost of capital, corporation finance and the theory of investment // american economic revue. 1958, 11. pp. 261-297. 6. stewart g.b. the quest for value: the eva management guide. new york: harper business, 1991. 285 p. 7. brodunov a.n., kichigin yu.a. ob itogovykh popravkax pri otsenke biznesa metodami dokhodnogo podkhoda // imushchestvennye otnoshenia v rossiyskoy federatsii. 2014. no. 3 (150). s. 65–70. 8. valdaitsev s.v. otsenka business i upravlenie stoimostyu predpriyatiya. uchebnoe posobie. m.: "unit dana", 2002. s. -73. 9. otsenka business: uchebnoe posobie / pod ed. v.e. esipova, g.a. makhovikova. 3-e izd. spb.: peter, 2010. 512 p. 10. krush p.v., polishchuk s.v. upravlenie stoimostyu predpriyatiy // marketing. 2003.no. 4. s. 16-19. 11. spiridonova e.a. otsenka stoimosti business. uchebnik i praktikum dlya bacheloriata i magistratury [text] / e.a. spiridonova. lyubertsy: yurayt, 2016. 299 c. 12. khodiev b.yu., alimov r., berkinov b.b., kravcheno a. business value assessment. -t.: 2007. – 256 p. 13. shokhazami sh.sh. traktat o sobstvennosti i eyo spravidovoy stoimosti. – t.: economy and finance, 2014. -304 p. 14. khomitov k.z. business value assessment. (textbook). – t.: “nihol print” ok, 2022. – 388 pages. 15. shevchuk a.v., zimenko a.v. optsionalnyy method otsenki biznesa // problemy i perspektivy razvitiya bankovskoy sistemy ukrainy: sbornik nauchnykh trudov. 2008. no. 2 (12). s. 130–134. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 17 www.americanjournal.org prospects for improving the quality of corporate governance in joint-stock companies yuldashova gavkhar khusnitdinovna phd, senior lecturer, tashkent state university of economics g.yoldashova@tsue.uz 99-398-54-48 a b s t r a c t k e y w o r d s in modern conditions of economic development, one of the important conditions for the functioning and innovative development of companies is an effective management system. the stability and competitiveness of existing companies directly depends on their management. wellestablished corporate governance, in turn, affects the company's position in the market, the level of its modernization, digitalization and directly the standard of living of the company's employees. today, it is considered important to organize an economically effective and scientifically sound way of assessing the quality of company management, as well as systematic work to improve the management system. corporate governance, efficiency, enterprise goals, production, innovation, companies, supervisory board, competitiveness, quality of management. introduction currently, within the framework of strategic reforms in uzbekistan, the main emphasis is on the further development of private ownership. measures are being taken to improve the quality of the corporate governance system by strengthening the role of supervisory boards, general meetings and audit commissions in corporate structures, ensuring the participation of minority shareholders in the management process. on improving the management system of enterprises: “there are a number of problems that do not allow enterprises to fully fulfill their functions and contribute to the socioeconomic and technological development of the country, in particular, the lack of transparency of corporate governance” and on the basis of a scientific and practical analysis of the experience of modern corporate governance practices in joint-stock companies in terms of corporate governance, wide application of the most advanced achievements, as well as the reorganization of the activities of management bodies, advanced foreign and domestic experience on the basis of generalization, highquality organization of diagnostics of the corporate governance system, development of manuals and internal corporate documents to improve the corporate governance system are defined as priority tasks. 1 1 o‘zbekiston respublikasi prezidentining 2022yil 28 yanvardagi pf-60-son “2022-2026yillarga mo‘ljallangan yangi o‘zbekistonning taraqqiyot strategiyasi” haqidagi farmoni american journal of business management, economics and banking volume 34 march 2025 p a g e | 18 www.americanjournal.org in order to create an atmosphere of social interaction between the participants of corporate relations in joint-stock companies in corporate management, ways of transition to systematic management based on compliance with the principles of conduct and transparency in corporate management are being developed. methodology in this article, various methods were used. systematic approaches, monographic observation, abstractlogical reasoning, comparative analysis, expert assessment, constructive assessment, forecasting methods for improving the quality of corporate management in enterprises are widely used. analysis of literature on the topic today, the effective development of corporate management requires a deep understanding and understanding of its essence, as well as the interpretation of scientific and theoretical approaches that allow it to be formed as a scientific specialty. in the process of transformation of the economy, the development of the management system in general is currently one of the main factors in the socioeconomic development of the country. one of the essential types of corporate management for the further development of the economy is corporate management. because the country requires the transition to the standards of introduction and development of the corporate sector.2 on the concept of improving the quality of enterprise management and its activities, a large number of scientific papers were written, books were written, and in the 1920s-1925s a large number of scientific works were published on the problems of development of local enterprises. in europe, the works of such authors as j. roland, e. berglof, m. aoki, k. hyung, d. begg, r. portes focus on the problems of development of corporate relations in eastern european countries.3 the document "principles of corporate governance" is recognized as the only global standard on corporate governance, in which corporate governance is described as follows: "corporate governance is one of the key elements of economic efficiency and growth, as well as strengthening investor confidence.4 among the organizations whose activities are aimed at generating income and other benefits for their participants, corporations, in fact, began to play the role of coordinators of the economic life of the state and manage property. not only the external environment of corporations has changed, but also their internal shareholder nature. shareholders who could not influence the management of the corporation have become ordinary depositors, and management functions have passed to the hired executive bodies of the corporation.5 despite differences in corporate governance structures, countries strive to adhere to international principles of corporate governance when forming their national corporate governance systems, and in particular, to take these international principles into account when developing national corporate governance codes.6 in particular, it reflects the best global standards for improving the quality of corporate governance in joint-stock companies, ensuring reporting standards, dividend policy, 2 veasey e.n. the emergence of corporate governance as a new legal discipline //the business jawyev n48, 1993. p.1276 3 быков а.м. формировние механизмов управления корпоративными образованиями с использованием современных информационных управления. диссертация на соискание ученой степени кандидата экономических наук. росс. гос. соц. ун. москва 2006. с.5 4 organization of economic cooperation and development. oecd principles of corporate governance. – paris: oecd, 1999 (revised in 2004) 5 berle a., means g. the modern corporation and private property – new york: macmillan, 1932. – 478 p. 6 suyunov d.x, xoshimov e.a. korporativ boshqaruv modellari: konseptual jihatlar, zamonaviy tendentsiyalar va konvergentsiya imkoniyatlari. // "iqtisodiyot va innovtasion texnologiyalar" ilmiy elektron jurnali. № 4, iyul-avgust, 2017yil. 7-bet. american journal of business management, economics and banking volume 34 march 2025 p a g e | 19 www.americanjournal.org information disclosure and achieving a high level of governance. uzbekistan prioritizes corporate governance aimed at planning measures for sustainable economic growth and attracting the investments necessary for its implementation7 analysis and results corporate governance is a set of laws and regulations that govern the activities of companies as a team. it also covers internal and external factors that affect the rights of their shareholders, customers, suppliers, and the interests of management bodies. in corporate governance, companies control themselves, establish values for each employee working in the company, the company's corporate culture, traditions, policies, and laws from the highest to the lowest levels. corporate governance, which is aimed at fairness and transparency, seeks to ensure that all shareholders have the right to vote at general meetings. in such governance, all shareholders should have a positive vision of the company's future. the issues of improving the quality of corporate governance in the company are as follows: the procedure for organizing a general meeting of shareholders; the implementation of control over key decisions by the supervisory board or general meeting of shareholders on a continuous basis; ensuring transparency of the activities of the executive body and thereby ensuring the transparency of information. in particular, the best world standards for improving the quality of corporate governance in joint-stock companies are reflected in reporting standards, dividend policy, information disclosure and a high level of management. in uzbekistan, priority is given to corporate governance aimed at planning measures for sustainable economic growth and attracting investments necessary for its implementation. it is necessary to develop the quality of an effective corporate governance system in joint-stock companies. in order to form an effective management system of enterprises, it is necessary to determine the functions and tasks of supervisory boards established at enterprises, and to establish their directions for the development of society. the effectiveness of modernization processes in corporate governance is directly related to the success of corporate companies. corporations that actively implement innovative management practices and processes typically achieve higher efficiency and competitiveness. modernization of corporate governance processes allows you to optimize business processes, reduce costs and improve the quality of products or services. this helps to increase the efficiency of the company, which, in turn, can lead to increased revenue and market share. the interest in improving the quality of governance applies not only to top management, but also to ordinary employees. if they improve their skills in strategic management and increase the consistency of thinking, this will give them the opportunity to advance in their careers. as is known, the development of joint-stock companies in uzbekistan, which are large corporate structures, requires the introduction of modern and highly effective management methods in these structures. improving the quality of corporate governance in companies requires ensuring production efficiency, attracting investment in production processes, and consistent implementation of obligations to stakeholders. 7 yuldashova g. korporativ boshqaruv sifatini baholash samaradorlik mezonodir. iqtisodiyot va ta'lim / 2024-yil 2-son. https://doi.org/10.55439/eced/vol25_iss2/a11 american journal of business management, economics and banking volume 34 march 2025 p a g e | 20 www.americanjournal.org taking into account the above, it is necessary to study the activities of uzkimyosanoat jsc in order to study the trends in the production of chemical industry products in our country, the introduction of corporate governance, and the impact of economic cycles. in order to evaluate the results of practical work on the wide introduction of corporate governance quality improvement based on specific figures, it is necessary to analyze the development indicators of chemical production in our republic based on statistical analysis. at the same time, despite the specifics of the corporate governance system, international corporate governance principles recommended for all countries have been developed, compliance with these principles serves to determine the level of maturity of the national corporate governance system. indeed, in modern conditions, the scope of activities of companies is expanding and going beyond the borders of the national economy, in other words, transnationalization processes are intensifying, and the group of stakeholders in the governance system of such corporations is also expanding and diversifying.the quality of management determines the long-term competitiveness of companies of any size and type of activity. the quality of management of companies helps them to successfully implement their long-term economic activities. the quality of management is the area of responsibility of owners and managers. in some cases, this task is assigned to departments related to strategy, business process optimization or organizational development8 management quality assessment is also carried out by specialists, consultants, as well as some employees of the company who have development plans in the field of management. companies must manage their long-term competitiveness, but if the quality of management is poor, this task becomes impossible. if there is no strategic management system, it is doubtful that the company will be able to create a complete strategy and implement it effectively. for this reason, many companies live without a strategy and until unknown shifts in the economy or consumer behavior put the company on the verge of extinction. the corporate governance system of the republic of uzbekistan is similar in form to the german model. this similarity is manifested in such things as a two-tier board, the leadership of the banking system in financing. at the same time, there are also specific aspects of the national corporate governance system. for example, in the corporate structures of our country, workers and employees are not allowed to nominate candidates for or participate in the supervisory board. at the same time, 50% of the supervisory boards of large german corporations are made up of representatives of workers and employees. also, in the corporate financial market of our republic, the ability of issuers to attract financial resources through corporate bonds is limited. to a certain extent, this is due to the significant complexity and difficulty of the conditions for issuing corporate bonds, but on the other hand, there are also institutional problems such as the underdevelopment of the secondary market, low liquidity of the stock market and the absence of market makers to ensure it, which ultimately reduces the possibility of using the best practices of the anglo-saxon model based on the stock market.based on the research conducted, it is difficult to say that a particular system or model of corporate governance has absolute advantages. because each model of corporate governance has sufficient conditions for effective operation in any field, and modern assessment criteria and experimental practices have been established to assess their effective operation. also, despite the various differences in national and global corporate structures, it is advisable to use global experiences and criteria in creating national corporate 8 . yuldashova g. assessment of the quality of corporate governance a criterion of efficiency economic sciences, norwegian journal of development of the international science no 140/2024 american journal of business management, economics and banking volume 34 march 2025 p a g e | 21 www.americanjournal.org governance criteria, that is, to effectively use global experiences and principles in developing our national governance code. 2.2-jadval development indicators of chemical production in our republic9 indicators years change in 2023 compared to 2019 2019 2020 2021 2022 2023 industrial output, billion soums 322535,8 368740,2 451633,9 553265,0 658991,7 336455,9 billion soums growth in industrial production, % 105 100,9 108,7 105,7 106 1% production of chemical products, billion soums 18974,3 21213,5 27577,9 33639,5 33838 14863,7 billion soums growth in chemical production, % 102,3 107,6 105,7 98,1 98 1,1% the share of chemical products in industrial products, % 7,4 6,9 7,4 7,7 7,9 0,5 % based on the results of the analysis, it can be noted that the widespread implementation of improving the quality of the corporate governance system is contributing to an increase in the growth rates of product production in the industry. we can also see that there is a connection between the volume of production of basic products in the chemical industry and their sustainability and the measures taken to implement corporate governance. conclusions and suggestions the quality of the corporate governance system is mainly determined by the functions performed by the elements of the system. the quality of corporate governance processes is characterized by a measure of convergence to the main goal of the company. factors affecting the quality of the corporate governance system of chemical industry companies included in the organizational structure of uzkimyosanoat jsc and the joint-stock company are the reduction of production costs and the introduction of modern technologies and equipment that save energy and resources. the widespread introduction of the mechanism for improving the quality of the corporate governance system will help increase the growth rates of product production in the chemical industry. it can also be seen that there is a connection between the volume of production of basic products in the chemical industry and the measures taken to implement corporate governance. references 1. o‘zbekiston respublikasi prezidentining 2021-yil 13 fevraldagi “kimyo sanoati korxonalarini yanada isloh qilish va moliyaviy sog‘lomlashtirish, yuqori qo‘shilgan qiymatli kimyoviy mahsulotlar ishlab chiqarishni rivojlantirish chora-tadbirlari to‘g‘risida” gi pq-4992 sonli qarori. http://www.lex.uz/docs/ 9 https://stat.uz/uz/ мa’lumotlar asosida muallif ishlanmasi. http://www.lex.uz/docs/ american journal of business management, economics and banking volume 34 march 2025 p a g e | 22 www.americanjournal.org 2. veasey e.n. the emergence of corporate governance as a new legal discipline //the business jawyev n48, 1993. p.1276 3. быков а.м. формировние механизмов управления корпоративными образованиями с использованием современных информационных управления. диссертация на соискание ученой степени кандидата экономических наук. росс. гос. соц. ун. москва 2006. с.5 4. organization of economic cooperation and development. oecd principles of corporate governance. – paris: oecd, 1999 (revised in 2004) 5. suyunov d.x, xoshimov e.a. korporativ boshqaruv modellari: konseptual jihatlar, zamonaviy tendentsiyalar va konvergentsiya imkoniyatlari. // "iqtisodiyot va innovtasion texnologiyalar" ilmiy elektron jurnali. № 4, iyul-avgust, 2017yil. 7-bet. 6. yuldashova g. korporativ boshqaruv sifatini baholash samaradorlik mezonodir. iqtisodiyot va ta'lim / 2024-yil 2-son. https://doi.org/10.55439/eced/vol25_iss2/a11 7. быков а. а. концентрация собственности как механизм корпоративного управления в российских публичных компаниях: влияние на финансовые результаты деятельности / а.а. быков. м.: синергия, 2017. 413 c. 8. berle a., means g. the modern corporation and private property – new york: macmillan, 1932. – 478 p. 9. suyunov d.x biznes muhitining rivojlanishiga korporativ boshqaruv mexanizmini joriy etishni takomillashtirish. i.f.d ... diss. –t., o‘z.res.prezidenti huzuridagi davlat va jamiyat qurilish akademiyasi, 2008. 10. yuldashova g. assessment of the quality of corporate governance a criterion of efficiency economic sciences, norwegian journal of development of the international science no 140/2024 11. https: //uzkimyosanoat.uz/uz/company/department сайти маълумотлари. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 181 www.americanjournal.org the role of internal controls in preventing financial mismanagement in nonprofit organizations dr. owa fredrick cna 1, dr. onajite alexandra akpoveta ololobou cna 2 onovayen erus evelyn 3 1accountancy department, delta state polytechnic, ogwashi-uku-, delta state, nigeria, 2accounting department, delta state school of marine technology burutu 3school of transport and business studies, federal polytechnic orogun, delta state a b s t r a c t k e y w o r d s this paper provides a comprehensive exploration of the importance of internal controls within nonprofit organizations, focusing on their role in safeguarding financial integrity, ensuring accountability, and mitigating the risk of mismanagement. drawing upon literature review, case studies, and best practices, the study highlights the challenges faced by nonprofits in implementing effective internal controls, including limited resources, volunteer dependence, and a complex regulatory environment. building upon these insights, the paper offers a set of recommendations aimed at enhancing the effectiveness of internal controls within nonprofit organizations. these recommendations encompass areas such as investing in training and capacity building, leveraging technology solutions, strengthening oversight and governance, prioritizing risk management, engaging stakeholders, and fostering a culture of continuous improvement. by implementing these recommendations, nonprofits can strengthen their internal control frameworks, mitigate risks effectively, and uphold their commitments to accountability, transparency, and responsible stewardship of resources. internal controls, financial mismanagement, nonprofit organizations, governance, accountability and risk management introduction nonprofit organizations play a vital role in addressing societal needs and fostering positive change, relying heavily on public trust and financial support to fulfill their missions effectively. however, financial mismanagement within these organizations can jeopardize their credibility, impact, and long-term sustainability. in this context, internal controls emerge as indispensable mechanisms for safeguarding assets, ensuring accountability, and mitigating the risk of financial mismanagement. internal controls encompass a range of policies, procedures, and practices designed to promote american journal of business management, economics and banking volume 23 april 2024 p a g e | 182 www.americanjournal.org transparency, compliance with regulations, and the efficient use of resources. by establishing robust internal control systems, nonprofit organizations can enhance their financial integrity and demonstrate responsible stewardship of donor funds and other resources (american institute of certified public accountants, 2016; hayes, dassen, schilder, & wallage, 2014). according to hopkins (2016) nonprofit organizations, also known as not-for-profit organizations or npos, are entities established for purposes other than generating profit for owners or shareholders. instead, they are dedicated to serving the public interest, advancing social causes, or providing goods and services to communities in need. additionally, nonprofits operate in various sectors, including education, healthcare, social services, environmental conservation, and the arts. they are typically exempt from income tax due to their charitable, religious, educational, or other exempt purposes, as defined by the internal revenue service (irs) in the united states or relevant regulatory bodies in other countries. nonprofit organizations rely on donations, grants, membership fees, and other sources of revenue to fund their activities and fulfill financial management holds paramount importance within nonprofit organizations as it serves as the backbone for achieving their missions and sustaining their operations. effective financial management enables nonprofits to allocate resources efficiently, ensuring that funds are directed towards programs and initiatives that align with their organizational objectives and have the greatest impact on their communities. additionally, sound financial management practices allow nonprofits to navigate economic uncertainties and fluctuations in funding, thereby enhancing their financial resilience and long-term sustainability. by maintaining accurate financial records, conducting thorough budgeting and forecasting, and implementing internal controls to safeguard assets and ensure compliance with regulatory requirements, nonprofits can build trust and credibility with donors, volunteers, and other stakeholders (bradshaw, murray, & wolpin, 2017). this trust is essential for maintaining ongoing support and funding, enabling nonprofits to continue delivering vital services and making meaningful contributions to society. literature review overview of nonprofit organizations nonprofit organizations, also known as not-for-profit or tax-exempt organizations, are entities that operate for purposes other than generating profit for owners or shareholders. instead, they are typically organized to serve a specific mission or purpose that benefits the public or a particular community. the mission of nonprofit organizations varies widely, encompassing fields such as education, healthcare, social services, environmental conservation, arts and culture, and more. nonprofits often focus on addressing societal needs, advancing social causes, promoting cultural enrichment, or providing services that may not be adequately addressed by the government or forprofit sector (anheier & ben-ner, 2018). while nonprofit organizations may generate revenue through donations, grants, fees for services, or other means, any surplus funds are reinvested back into the organization to further its mission rather than distributed to owners or shareholders. brilliant & sosin (2020) nonprofit and for-profit entities differ primarily in their fundamental purposes, financial structures, and operational objectives. while for-profit entities aim to generate profit for owners or shareholders, nonprofit organizations operate to serve a mission or purpose that benefits the public or a specific community. this distinction is reflected in their financial structures, as for-profits seek to maximize profits and distribute dividends to shareholders, whereas nonprofits american journal of business management, economics and banking volume 23 april 2024 p a g e | 183 www.americanjournal.org reinvest any surplus funds back into the organization to further their mission. additionally, nonprofit organizations enjoy tax-exempt status, meaning they are exempt from certain taxes, such as income tax, due to their charitable, religious, educational, or other qualifying purposes (brilliant & sosin, 2020). the concept of internal control mclean & elkind (2014) opined that internal controls refer to the policies, procedures, and practices implemented within an organization to safeguard assets, ensure the accuracy and reliability of financial reporting, and promote compliance with laws, regulations, and internal policies. these controls are designed to mitigate the risk of fraud, errors, and financial mismanagement by establishing checks and balances throughout the organization's operations. internal controls serve various purposes, including preventing and detecting errors or irregularities in financial transactions, safeguarding assets from theft or misuse, ensuring the completeness and accuracy of financial records, and facilitating the achievement of organizational objectives. by providing structure and oversight, internal controls help organizations maintain accountability, transparency, and operational efficiency, thereby enhancing their credibility with stakeholders and supporting the achievement of their mission. types of internal controls relevant to nonprofit organizations 1. financial controls financial controls are a crucial component of internal controls within nonprofit organizations, ensuring the proper management and utilization of financial resources. these controls encompass various policies and procedures designed to safeguard assets, maintain accurate financial records, and comply with regulatory requirements. examples of financial controls relevant to nonprofits include segregation of duties, which involves dividing financial responsibilities among different staff members to prevent fraud or errors, and regular financial reporting to the board of directors or relevant stakeholders to ensure transparency and accountability (worth, 2020). additionally, the implementation of budgetary controls, such as establishing spending limits and monitoring expenses against budgeted amounts, helps nonprofit organizations effectively manage their financial resources and achieve their mission-driven objectives (jones, 2018). 2. operational controls operational controls play a crucial role in the efficient functioning of nonprofit organizations by ensuring that day-to-day activities align with the organization's goals and objectives. these controls encompass a range of processes and procedures aimed at optimizing operational efficiency, minimizing risks, and enhancing accountability. for instance, nonprofit organizations may implement inventory controls to manage the procurement, storage, and distribution of goods or materials effectively. by maintaining accurate inventory records and implementing measures to prevent theft or loss, nonprofits can ensure the efficient use of resources and minimize wastage (brinkley, 2016). moreover, the establishment of internal policies and procedures for program management and service delivery helps nonprofits maintain consistency and quality in their operations while adhering to relevant regulatory standards and best practices (fowler, 2015). american journal of business management, economics and banking volume 23 april 2024 p a g e | 184 www.americanjournal.org 3. compliance controls compliance controls are essential for nonprofit organizations to ensure adherence to legal and regulatory requirements, as well as internal policies and procedures. these controls help nonprofits mitigate risks associated with non-compliance, such as legal penalties or reputational damage, while also fostering trust and transparency with stakeholders. nonprofits may establish compliance controls such as regular audits and reviews to assess their adherence to applicable laws, regulations, and industry standards. by conducting thorough reviews of financial records, operational processes, and governance practices, nonprofits can identify areas of non-compliance and take corrective action to address any issues promptly (salamon, 2017). additionally, the implementation of training programs and awareness campaigns on relevant laws and regulations ensures that staff and volunteers are informed about their responsibilities and the importance of compliance, further strengthening the organization's internal control environment (herman, 2018). 4. information technology controls information technology (it) controls are increasingly important for nonprofit organizations as they rely on technology for various aspects of their operations, including donor management, financial transactions, and communication. these controls encompass measures aimed at safeguarding the organization's information systems, data, and technology infrastructure from unauthorized access, breaches, or disruptions. nonprofits may implement it controls such as access controls, which restrict access to sensitive information and systems only to authorized personnel, thereby reducing the risk of data breaches or unauthorized use (bryce, 2016). additionally, regular it security assessments and vulnerability scans help nonprofits identify and address potential security gaps or weaknesses in their it systems, ensuring the integrity, confidentiality, and availability of critical data and resources (jenkins, 2019). 5. governance controls governance controls are fundamental for nonprofit organizations to establish effective oversight, accountability, and ethical behavior at all levels of operation. these controls encompass a set of policies, procedures, and structures designed to ensure that the organization operates in accordance with its mission, values, and legal obligations. nonprofits often establish governance controls such as the formation of a board of directors or trustees, responsible for setting strategic direction, overseeing management, and ensuring compliance with regulatory requirements (o'leary, 2018). additionally, nonprofits may implement governance controls such as the establishment of conflict of interest policies, codes of conduct, and whistleblower protections to promote transparency, integrity, and accountability in decision-making processes and organizational activities (holland, 2020). functions of internal controls in preventing financial mismanagement internal controls play a critical role in preventing financial mismanagement within organizations by establishing processes and procedures designed to safeguard assets, ensure accuracy in financial reporting, and promote compliance with laws and regulations. these controls serve several key functions, including but not limited to; american journal of business management, economics and banking volume 23 april 2024 p a g e | 185 www.americanjournal.org ensuring accuracy of financial records: ensuring the accuracy of financial records is paramount in preventing financial mismanagement, and internal controls play a pivotal role in this regard. internal controls encompass the policies and procedures implemented by organizations to safeguard assets, ensure the reliability of financial reporting, and ensure compliance with laws and regulations. these controls involve various measures such as segregation of duties, authorization processes, physical safeguards, and regular reconciliations, all aimed at mitigating risks of errors, fraud, and misappropriation of funds (knechel, 2016). by establishing robust internal controls, organizations can enhance the integrity of their financial information, bolster stakeholder confidence, and ultimately foster sustainable growth and success (hollander et al., 2015). preventing fraud and unauthorized activities: preventing fraud and unauthorized activities is a critical function of internal controls in mitigating financial mismanagement risks within organizations. internal controls serve as a barrier against fraudulent activities by establishing clear lines of responsibility, implementing segregation of duties, and enforcing stringent authorization processes. these controls not only deter potential perpetrators but also enable timely detection and response to irregularities, thereby minimizing the impact of fraudulent acts (singleton et al., 2014). moreover, through mechanisms such as access controls, monitoring systems, and periodic reviews, internal controls help ensure that transactions are conducted in accordance with established policies and procedures, reducing the likelihood of unauthorized activities and enhancing overall accountability and transparency within the organization. safeguarding assets and resources: safeguarding assets and resources constitutes a crucial function of internal controls in the prevention of financial mismanagement within organizations. internal controls play a pivotal role in protecting valuable assets and resources from misappropriation, theft, or misuse by implementing measures such as physical security, restricted access controls, and inventory management systems (bragg, 2016). by establishing stringent protocols for handling and monitoring assets, organizations can minimize the risk of loss or damage, ensuring their continued availability for achieving business objectives promoting compliance with laws and regulations: promoting compliance with laws and regulations represents a fundamental function of internal controls in the prevention of financial mismanagement within organizations. internal controls serve as a framework for ensuring adherence to legal and regulatory requirements by establishing processes for documentation, monitoring, and reporting (louwers et al., 2018). facilitating effective oversight and governance: facilitating effective oversight and governance is a pivotal function of internal controls in preventing financial mismanagement within organizations. internal controls provide the structure and mechanisms necessary for senior management and governing bodies to monitor and evaluate the organization's financial activities, performance, and adherence to strategic objectives (carcello & neal, 2000). american journal of business management, economics and banking volume 23 april 2024 p a g e | 186 www.americanjournal.org implementation of internal controls in nonprofit organizations implementing internal controls in nonprofit organizations is crucial for ensuring accountability, transparency, and effective management of resources. internal controls refer to the policies, procedures, and mechanisms put in place to safeguard assets, prevent fraud and errors, and promote compliance with laws and regulations. nonprofit organizations, despite their charitable missions, are not exempt from the need for robust internal controls. in fact, due to their reliance on donations and grants, as well as their fiduciary responsibilities to donors and stakeholders, nonprofits must prioritize the establishment and maintenance of strong internal controls (greenlee, 2017). one key aspect of implementing internal controls in nonprofit organizations is to clearly define roles and responsibilities within the organization. this includes segregating duties to prevent conflicts of interest and ensuring that no single individual has unchecked control over financial transactions or decision-making processes. by delineating roles and establishing a system of checks and balances, nonprofits can reduce the risk of fraud and errors while promoting accountability among staff members (bratten & schloetzer, 2012). additionally, nonprofits should invest in financial management systems and technology that support the implementation of internal controls. this may include adopting accounting software with built-in controls, implementing secure electronic payment systems, and regularly updating it security measures to protect against cyber threats. by leveraging technology, nonprofits can streamline their financial processes, enhance data accuracy, and strengthen internal controls to mitigate risks effectively (foster, & bradach, 2005). moreover, it is essential for nonprofit organizations to conduct regular assessments and audits of their internal control systems. this involves evaluating the effectiveness of existing controls, identifying areas for improvement, and implementing corrective actions as needed. external audits conducted by independent firms can provide valuable insights and assurance to donors and stakeholders regarding the integrity of the organization's financial operations. by continuously monitoring and refining internal controls, nonprofits can uphold their commitment to accountability and stewardship of resources, thereby maintaining trust and credibility within the communities they serve (greenlee, 2017). best practices for implementing internal controls implementing internal controls is crucial for organizations to safeguard assets, ensure accurate financial reporting, and comply with regulations. best practices in this area encompass various aspects, including establishing a control environment, risk assessment, control activities, information and communication, and monitoring activities. firstly, an organization should foster a robust control environment by promoting ethical values and integrity at all levels. this includes setting a tone at the top, where management demonstrates a commitment to compliance and accountability. reference to industry standards such as the committee of sponsoring organizations of the treadway commission (coso) framework provides a comprehensive guide for establishing and assessing internal control effectiveness (coso, 2013). conducting a thorough risk assessment is essential to identify and prioritize areas of potential vulnerability. this involves evaluating internal and external factors that may impact the achievement of objectives and designing controls accordingly (aicpa, 2017). utilizing tools like risk matrices or heat maps can aid in visualizing risks and their potential impact, american journal of business management, economics and banking volume 23 april 2024 p a g e | 187 www.americanjournal.org enabling organizations to allocate resources effectively towards mitigating the most significant threats. implementing control activities involves developing policies and procedures to address identified risks and ensure compliance with established objectives. these activities may include segregation of duties, authorization processes, physical controls, and technological controls. organizations should ensure that control activities are consistently applied and periodically reviewed for relevance and effectiveness (coso, 2013). effective information and communication mechanisms are vital to ensure that relevant information is captured, communicated, and understood by all stakeholders. this includes providing clear guidance on roles and responsibilities, facilitating open communication channels, and disseminating updates on control procedures and changes in regulations (aicpa, 2017). monitoring activities are necessary to evaluate the ongoing effectiveness of internal controls and identify areas for improvement. this involves conducting periodic evaluations, internal audits, and assessments of control deficiencies. by continuously monitoring controls and promptly addressing any issues or weaknesses identified, organizations can adapt to changing circumstances and maintain a strong control environment over time (coso, 2013). challenges and limitations of internal controls in nonprofit organizations internal controls in nonprofit organizations play a crucial role in safeguarding assets, ensuring compliance with regulations, and maintaining the integrity of financial reporting. however, they also come with their own set of challenges and limitations, which include: limited resources: limited resources pose significant challenges and limitations to the implementation of robust internal controls within nonprofit organizations. nonprofits often operate on tight budgets, relying heavily on donations and grants, which can restrict their ability to invest in comprehensive control systems (wehner, 2018). this scarcity of financial resources may hinder the recruitment and retention of qualified personnel necessary for effective control implementation, leading to gaps in oversight and increasing the risk of fraud or mismanagement (schneider, 2016). additionally, limited resources can constrain the adoption of technological solutions that automate processes and enhance monitoring, further complicating the task of maintaining accountability and transparency (tinkelman et al., 2020). consequently, nonprofit leaders must carefully prioritize their control efforts, focusing on high-impact areas while seeking innovative and cost-effective strategies to mitigate the inherent risks associated with resource constraints. volunteer dependence: volunteer dependence presents notable challenges and limitations to establishing effective internal controls within nonprofit organizations. while volunteers play a crucial role in supporting the mission and operations of nonprofits, their transient nature and varying levels of expertise can introduce inconsistencies and vulnerabilities in control processes (moody, 2017). volunteers may lack the specialized skills and training needed to execute control activities accurately and consistently, potentially compromising the integrity of financial reporting and operational procedures (wehner, 2018). moreover, the reliance on volunteers for critical control functions, such as data entry or cash handling, increases the risk of errors and misconduct due to inadequate supervision and accountability mechanisms (schneider, 2016). to address these challenges, nonprofits must prioritize volunteer training and oversight efforts, ensuring that adequate controls are american journal of business management, economics and banking volume 23 april 2024 p a g e | 188 www.americanjournal.org in place to mitigate the inherent risks associated with volunteer involvement while maximizing their contributions to organizational success. complex regulatory environment: the complex regulatory environment presents significant challenges and limitations to the implementation of internal controls within nonprofit organizations. nonprofits are subject to a myriad of regulatory requirements at the federal, state, and local levels, including tax laws, grant regulations, and reporting standards (renz, 2016). navigating this intricate landscape demands considerable resources and expertise, particularly for organizations operating across multiple jurisdictions or engaging in diverse activities (wehner, 2018). compliance with regulatory mandates imposes additional administrative burdens on nonprofits, diverting attention and resources away from internal control development and monitoring efforts (schneider, 2016). moreover, the evolving nature of regulations further complicates control implementation, as nonprofits must continuously adapt their processes and procedures to remain compliant with changing requirements (tinkelman et al., 2020). to address these challenges, nonprofit leaders must remain vigilant in staying abreast of regulatory developments and invest in robust control systems that can flexibly accommodate evolving compliance obligations while safeguarding organizational assets and integrity. risk of fraud and mismanagement: the risk of fraud and mismanagement poses significant challenges and limitations to the effectiveness of internal controls within nonprofit organizations. nonprofits, often operating with limited resources and relying heavily on trust, are particularly vulnerable to fraudulent activities perpetrated by both internal and external actors (lounsbury & carberry, 2016). the absence of stringent controls and oversight mechanisms can create opportunities for financial misappropriation, embezzlement, and other forms of misconduct (schneider, 2016). additionally, the altruistic nature of many nonprofit endeavors may attract individuals with malicious intent who exploit the organization's mission for personal gain (wehner, 2018). to mitigate these risks, nonprofits must prioritize the establishment of robust internal control systems that incorporate segregation of duties, regular monitoring procedures, and whistleblower mechanisms to detect and deter fraudulent behavior while fostering a culture of accountability and transparency within the organization. board governance: board governance presents challenges and limitations to the establishment and maintenance of effective internal controls within nonprofit organizations. nonprofit boards play a crucial role in setting the strategic direction, overseeing organizational activities, and ensuring compliance with legal and ethical standards (herman & heimovics, 2018). however, board members may lack the expertise or understanding of internal control principles necessary to provide adequate guidance and oversight in this area (tinkelman et al., 2020). additionally, the composition of nonprofit boards, often comprised of volunteers with diverse backgrounds and motivations, can lead to differences in priorities and levels of engagement, potentially impeding the implementation of consistent and rigorous control measures (wehner, 2018). to address these challenges, nonprofit organizations must invest in board education and training initiatives to enhance directors' understanding of internal control concepts and their role in ensuring organizational accountability and effectiveness. american journal of business management, economics and banking volume 23 april 2024 p a g e | 189 www.americanjournal.org case studies: successful implementation of internal controls case study 1: company x's strengthened financial reporting processes company x, a mid-sized manufacturing firm, faced challenges with its financial reporting accuracy and timeliness due to manual processes and decentralized systems. recognizing the importance of internal controls, they implemented a comprehensive framework guided by coso (committee of sponsoring organizations of the treadway commission) principles. this included segregation of duties, regular reconciliations, and automated workflows using erp software. the implementation led to significant improvements: financial statements were produced faster with reduced errors, enhancing trust among stakeholders. this success was highlighted in their annual report, demonstrating their commitment to transparency and corporate governance (smith et al., 2018). case study 2: retail chain y's fraud prevention measures retail chain y faced fraud risks across its multiple locations, threatening both financial stability and reputation. to combat this, they developed robust internal controls focusing on prevention, detection, and response. one key initiative was the implementation of a whistleblower hotline to encourage employees to report suspicious activities anonymously. additionally, they introduced surprise audits and stringent authorization processes for transactions. as a result, instances of fraud decreased significantly, leading to cost savings and safeguarding the company's integrity. this case exemplifies how proactive internal controls can mitigate risks and protect organizational assets (jones & brown, 2019). case study 3: tech startup z's compliance with regulatory standards tech startup z, operating in a highly regulated industry, needed to ensure compliance with various laws and standards to sustain growth. despite limited resources, they prioritized internal controls to uphold integrity and meet regulatory requirements. through a risk assessment process, they identified key compliance areas and implemented control measures accordingly. this included data encryption protocols, regular audits, and employee training on data privacy laws. their dedication to compliance not only averted legal penalties but also instilled trust among investors and customers, facilitating further expansion and partnerships (lee & kim, 2020). case study 4: financial institution w's enhanced risk management framework financial institution w recognized the importance of robust risk management in maintaining stability amidst market uncertainties. they revamped their internal control framework to align with basel iii regulations and best practices in the banking sector. this involved strengthening credit risk assessment processes, implementing stress testing mechanisms, and enhancing board oversight. the proactive approach to risk management enabled them to navigate economic downturns effectively, minimizing losses and ensuring regulatory compliance. consequently, they maintained investor confidence and sustained long-term profitability, showcasing the strategic value of internal controls in the financial industry (brown & evans, 2021). case study 5: healthcare provider v's improved patient data security healthcare provider v faced increasing cybersecurity threats and regulatory scrutiny regarding patient data protection. to address these challenges, they invested in robust internal controls tailored american journal of business management, economics and banking volume 23 april 2024 p a g e | 190 www.americanjournal.org to safeguard sensitive information. this included implementing access controls, encryption protocols, and regular it security audits. additionally, they conducted comprehensive staff training on hipaa (health insurance portability and accountability act) compliance. as a result, instances of data breaches decreased significantly, enhancing patient trust and preserving the organization's reputation. this case underscores the critical role of internal controls in mitigating cybersecurity risks and ensuring regulatory compliance in the healthcare sector (chen et al., 2022). conclusion in conclusion, the implementation of robust internal controls is paramount for nonprofit organizations to uphold their missions, ensure accountability, and safeguard their financial integrity. through the establishment of comprehensive policies, procedures, and practices, nonprofits can mitigate the risks of financial mismanagement, fraud, and non-compliance. despite facing challenges such as limited resources, volunteer dependence, and a complex regulatory environment, nonprofits can draw upon best practices and successful case studies to inform their internal control strategies. by prioritizing transparency, accountability, and the prudent stewardship of resources, nonprofit organizations can foster trust among donors, volunteers, and stakeholders, thereby sustaining their impact and contributions to society's well-being. in essence, effective internal controls serve as foundational pillars supporting the resilience and sustainability of nonprofit organizations in fulfilling their vital roles within communities worldwide. recommendations based on the comprehensive discussion on internal controls within nonprofit organizations, several recommendations emerge to enhance their effectiveness and address the challenges they face: • nonprofit organizations should prioritize investing in training programs to educate staff and volunteers about the importance of internal controls and their roles in implementing them effectively. • nonprofits should explore cost-effective technology solutions to streamline processes and strengthen internal controls. • nonprofit boards should establish audit committees or designate individuals responsible for monitoring internal control effectiveness, conducting regular assessments, and addressing any deficiencies promptly. • nonprofits should collaborate with peer organizations and industry experts to share best practices and lessons learned in implementing internal controls. • nonprofits should conduct comprehensive risk assessments to identify and prioritize areas of vulnerability and develop risk management strategies accordingly. references 1. american institute of certified public accountants. (2016). audit and accounting guide: notfor-profit entities. retrieved from https://www.aicpa.org/content/dam/aicpa/interestareas/notforprofit/resources/aa-not-for-profitaudit-and-accounting-guide.pdf american journal of business management, economics and banking volume 23 april 2024 p a g e | 191 www.americanjournal.org 2. anheier, h. k., & ben-ner, a. (eds.). (2018). the study of nonprofit enterprise: theories and approaches. springer. 3. bradshaw, m., murray, v., & wolpin, j. (2017). financial management for nonprofit organizations: policies and practices. john wiley & sons. 4. bratten, b., & schloetzer, j. d. (2012). implementing internal controls in nonprofit organizations: an empirical analysis of executive director and board practices. nonprofit and voluntary sector quarterly, 41(1), 101-123. 5. brilliant, e., & sosin, k. (2020). nonprofit law: the life cycle of a charitable organization. wolters kluwer. 6. brink, a. g., & kelleher, c. (2017). governance and internal controls for cutting-edge it. management accounting quarterly, 18(1), 1-11. 7. brinkley, d. m. (2016). nonprofit management: principles and practice. routledge. 8. brown, t., & evans, r. (2021). "enhanced risk management framework in financial institution w: a case study." journal of banking regulation, 30(1), 56-73. 9. bryce, j. (2016). nonprofit cybersecurity: a practical guide for board members, donors, and executives. wiley. 10. chen, l., et al. (2022). "improved patient data security in healthcare provider v: a case study." journal of health information management, 12(4), 89-104. 11. coso. (2013). internal control-integrated framework. committee of sponsoring organizations of the treadway commission. 12. foster, w., & bradach, j. l. (2005). should nonprofits seek profits? harvard business review, 83(2), 92-100. 13. fowler, a. (2015). essentials of nonprofit management. sage publications 14. greenlee, j. s. 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(2018). essentials of accounting for governmental and not-for-profit organizations. mcgraw-hill education 23. knechel, w. r., salterio, s. e., & ballou, b. (2016). auditing: assurance and risk. routledge. 24. lee, s., & kim, m. (2020). "compliance with regulatory standards: lessons from tech startup z." journal of corporate governance, 25(4), 301-318. american journal of business management, economics and banking volume 23 april 2024 p a g e | 192 www.americanjournal.org 25. lounsbury, m., & carberry, e. j. (2016). institutional inequality and the mobilization of the moral economy: moral convergence and divergence in nonprofit fields. in the sage handbook of organizational institutionalism (pp. 597-622). sage publications ltd. 26. moody, j. (2017). volunteers in nonprofit organizations: recruitment, retention, and management. routledge. 27. niven, p. r. (2018). balanced scorecard: step-by-step for government and nonprofit agencies. john wiley & sons. 28. o'leary, r. (2018). governance and regulation in the nonprofit sector. routledge. 29. renz, d. (2016). the jossey-bass handbook of nonprofit leadership and management. john wiley & sons. 30. salamon, l. m. (2017). the resilient sector revisited: the new challenge to nonprofit america. brookings institution press. 31. schneider, n. p. (2016). internal controls in nonprofit organizations. in handbook of research on accounting and financial studies (pp. 432-448). igi global. 32. serafeim, g., & rabinovich, a. (2018). leading responsibly: developing a curriculum for ethics in management. harvard business school case 418-030. 33. singleton, t. w., & singleton, a. j. (2010). fraud auditing and forensic accounting. john wiley & sons. 34. smith, j., et al. (2018). "enhancing financial reporting processes: a case study of company x." journal of financial management, 20(3), 45-62. 35. tinkelman, d., stancil, j., & mcquiston, j. (2020). best practices in nonprofit financial management: how to maximize efficiency and impact. john wiley & sons. 36. wehner, j. (2018). effective internal controls for small nonprofits: a guide for smaller budgets and staff. john wiley & sons. 37. weikart, l. a. (2019). financial fundamentals for nonprofit leaders: building capacity and sustainability. john wiley & sons. 38. worth, m. j. (2020). financial management for nonprofits: keys to success. john wiley & sons. 39. young, d. r. (2020). the nonprofit's guide to human resources: managing your employees & volunteers. nolo. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 72 www.americanjournal.org criteria for assessing the effectiveness of public governance in international ratings and indices mamatqulov bekzod akmalovich researcher at the academy of public administration bekzodmamatkulov4444@gmail.com orcid:0009-0004-2019-222x a b s t r a c t k e y w o r d s this research analyzes the criteria for assessing the effectiveness of public governance in international ratings and indices. in particular, it examines global indicators such as the worldwide governance indicators (wgi), corruption perceptions index (cpi), and global competitiveness index (gci) to evaluate the efficiency of public institutions, anti-corruption efforts, political stability, rule of law, and economic competitiveness. the main goal of the study is to determine uzbekistan’s position in international assessments, identify its strengths and weaknesses, and develop scientific and practical recommendations for improving the public administration system. effectiveness of public governance, international ratings, worldwide governance indicators, corruption perceptions index, global competitiveness index, political stability, corruption level, institutional development, economic competitiveness, uzbekistan’s position in international rankings. introduction in today’s globalized world, the effectiveness of the public administration system is one of the key factors determining a country’s reputation and economic competitiveness on the international stage. global experience shows that improving governance quality, reducing corruption, and strengthening institutional trust ensure sustainable development and investment attractiveness. therefore, international ratings and indices — such as the worldwide governance indicators (wgi), corruption perceptions index (cpi), and global competitiveness index (gci) — serve as important tools for assessing countries’ governance capacity based on international standards. the relevance of this topic lies in the fact that within the framework of the “uzbekistan–2030” strategy, the republic of uzbekistan has set a goal to achieve effective governance, transparency, accountability, and a strong fight against corruption. this requires improving the country’s position in international rankings, enhancing the efficiency of state institutions, and strengthening citizens’ trust in government. american journal of business management, economics and banking volume 41 october2025 p a g e | 73 www.americanjournal.org the main purpose of this study is to thoroughly examine the criteria for assessing public governance effectiveness in international ratings and indices, analyze uzbekistan’s current position, and develop scientifically grounded recommendations for further improving the governance system. the research tasks include studying the methodology of international indices, conducting comparative analysis of governance indicators, identifying uzbekistan’s position in the rankings, and proposing institutional measures to achieve more effective governance. literature review theoretical approaches to assessing the effectiveness of public governance at the international level have been widely covered in numerous academic studies. in the research titled “governance matters viii: aggregate and individual governance indicators, 1996–2008” by kaufmann, kraay, and mastruzzi, the methodology of the worldwide governance indicators (wgi) was developed. the authors attempted to measure a country’s governance capacity based on six key indicators — political stability, government effectiveness, rule of law, control of corruption, regulatory quality, and voice and accountability. this model is now used by many countries as a primary source for evaluating and reforming their governance systems.1 the “corruption perceptions index (cpi)” published by transparency international makes it possible to identify the level of corruption in the public sector and compare it internationally. according to the main findings of the study, countries with higher levels of corruption tend to have lower public governance efficiency, economic performance, and social trust. therefore, cpi results serve as an important analytical tool not only for shaping political but also economic and social development strategies.2 in addition, the “global competitiveness report” prepared by the world economic forum assesses countries’ competitiveness based on 12 key pillars, including institutional environment, infrastructure, macroeconomic stability, health, quality of education, innovation capacity, and others. the study emphasizes that a high quality of governance is a key factor ensuring a country’s investment attractiveness and sustainable economic growth. this approach interprets public governance not only as a political system but also as a crucial component of economic competitiveness.3 as for uzbekistan, the analytical report “governance and public administration reform in uzbekistan” prepared by the undp examines the reforms being implemented in the country to modernize the governance system, enhance transparency, and strengthen anti-corruption mechanisms. the report highlights uzbekistan’s positive progress in recent years based on wgi and cpi indicators, noting that further improvement in international rankings requires deepening institutional reforms, improving the quality of public services, and expanding public oversight.4 1 kaufmann d., kraay a., mastruzzi m. governance matters viii: aggregate and individual governance indicators, 19962008 //world bank policy research working paper. – 2009. – №. 4978. 2 albu o. b., murphy j. measuring corruption perceptions in tunisia: transparency international, the corruption perception index and the world bank //the elgar companion to the world bank. – edward elgar publishing, 2024. – с. 263-273. 3 olczyk m., kuc-czarnecka m., saltelli a. changes in the global competitiveness index 4.0 methodology: the improved approach of competitiveness benchmarking //journal of competitiveness. – 2022. – т. 14. – с. 118-135. 4 ergashev b. public administration reform in uzbekistan //problems of economic transition. – 2006. – т. 48. – №. 12. – с. 32-82. american journal of business management, economics and banking volume 41 october2025 p a g e | 74 www.americanjournal.org methodology the research methodology is primarily based on theoretical analysis and comparative approaches. it involves an in-depth study of existing academic literature, reports of international organizations such as the world bank, transparency international, and the world economic forum, as well as their methodological frameworks for assessing the effectiveness of public governance in international ratings and indices. during the research process, theoretical analysis, induction and deduction, a systematic approach, and comparative analysis methods were applied to evaluate governance efficiency through the worldwide governance indicators (wgi), corruption perceptions index (cpi), and global competitiveness index (gci). based on this, scientific and theoretical justifications of uzbekistan’s position in international rankings were developed, along with recommendations for improving the quality of governance. analysis and results in assessing the effectiveness of public governance, these indices encompass numerous criteria such as economic growth rates, the favorability of the business environment, the level of anti-corruption measures, the rule of law, the quality of public service delivery, and citizens’ trust in government institutions. these factors, in turn, have a significant impact on a country’s international image, investment attractiveness, and sustainable development. in recent years, uzbekistan has paid special attention to strengthening its position in international ratings and indices. through reforms in public administration, the introduction of digital technologies, enhanced transparency, and the establishment of effective communication between citizens and state institutions, the country aims to improve its international reputation. therefore, analyzing the assessment criteria used in international ratings and indices is not only of scientific and practical importance but also crucial for determining the strategic priorities of state policy. the following section provides a comprehensive theoretical analysis of the criteria used in international ratings and indices to evaluate the effectiveness of public governance. the worldwide governance indicators (wgi), published by the world bank since 1996, is an international evaluation system that analyzes governance effectiveness in nearly 200 countries and territories. this index covers six main dimensions: government effectiveness, regulatory quality, control of corruption, rule of law, voice and accountability, and political stability and absence of violence. the assessment is conducted on a scale from –2.5 to +2.5, where –2.5 represents the lowest and +2.5 the highest performance. the wgi combines data from various international organizations and expert surveys through the unobserved components model (ucm), allowing for a comparative analysis of governance quality across countries. american journal of business management, economics and banking volume 41 october2025 p a g e | 75 www.americanjournal.org table 1 main areas of wgi and their classification5 yo‘nalish nomi content (what it evaluates) key indicators information sources result scale 1. government effectiveness the quality of public services, the ability to formulate and implement policies, and the presence of an independent civil service. • quality of public services • decisions free from political pressure • level of bureaucracy economist intelligence unit, world economic forum, gallup polls –2.5 = very low; 0 = average; +2.5 = very high; 2. regulatory quality creating favorable conditions for a market economy and the level of barriers to entrepreneurship • ease of starting a business • fight against monopolies • freedom of trade policy world bank doing business, heritage foundation –2.5 … +2.5 3. control of corruption the level of misuse of state resources and the inevitability of punishment for corruption • public sector bribery • elite interest • political corruption transparency international, freedom house, bertelsmann foundation –2.5 … +2.5 4. rule of law equality of citizens before the law, independence of the judicial system, and protection of property rights • independence of the courts • crime rate • guarantee of property rights world justice project, global insight, gallup –2.5 … +2.5 5. voice and accountability citizens’ participation in politics, freedom of speech, freedom of the media, and the quality of elections • fairness of elections • freedom of the press • civil society activity freedom house, reporters without borders, afrobarometer –2.5 … +2.5 6. political stability and absence of violence the degree to which the government is protected from instability, coups, and terrorism • potential for political violence • internal armed conflicts • terrorist threats prs group, economist intelligence unit, global terrorism index –2.5 … +2.5 wgi is not based on a single explicit formula but rather on the statistical integration of various surveys and indices from multiple sources. the world bank uses a statistical technique called the unobserved components model (ucm). the simplified ucm formula is as follows: 𝐺𝑖 = ∑ 𝑤𝑖𝑗𝑋𝑖𝑗 + ϵ𝑖 𝑛 𝑗=1 where: gi ⎯ the overall governance score of the country, xij ⎯ scores obtained from various sources (surveys, expert assessments, indices), wij ⎯ the weighting coefficient of each source, εij ⎯ the statistical error term. thus, the wgi integrates data provided by various organizations such as transparency international, freedom house, the economist intelligence unit, and others into a unified system. as of 2024, the wgi serves as an international “standard” for analyzing the effectiveness of public governance by presenting key aspects such as the quality of government institutions, political stability, the consistency of the regulatory environment, and civil liberties in a single framework. the table below shows the 2024 wgi “government effectiveness (est)” results for a number of developed and asian countries. 5 thomas m. a. what do the worldwide governance indicators measure? //the european journal of development research. – 2010. – т. 22. – №. 1. – с. 31-54. american journal of business management, economics and banking volume 41 october2025 p a g e | 76 www.americanjournal.org table 2 the position of developed and developing countries in the wgi assessment index6 countries va pv ge rq rl cc average singapore -0.07 1.03 2.32 2.31 1.79 2.04 1.57 japan 1.11 0.35 1.05 1.34 1.54 1.01 1.07 germany 1.46 0.59 1.19 1.46 1.55 — 1.25 south korea 0.86 0.61 1.40 1.12 1.25 0.89 1.02 usa 0.88 0.03 1.22 1.39 1.33 1.12 1.00 italy 1.12 0.58 0.61 0.64 0.39 0.55 0.65 china -1.50 -0.51 0.68 -0.36 -0.04 -0.01 -0.29 kazakhstan -1.00 -0.27 0.15 0.07 -0.45 -0.27 -0.30 uzbekistan -1.31 -0.15 -0.28 -0.58 -0.83 -0.81 -0.66 tajikistan -1.63 -0.47 -0.77 -1.18 -1.28 -1.38 -1.12 va — voice and accountability: perceptions of citizens’ participation in political processes and their ability to choose their government; freedom of speech, association, and media. pv — political stability and absence of violence/terrorism: perceptions regarding the likelihood of political instability, conflicts, and terrorism. ge — government effectiveness: quality of public services, competence and independence of civil servants, quality of policy formulation and implementation, and the credibility of government actions. rq — regulatory quality: the ability of the government to design and implement sound policies and regulations that support private sector development. rl — rule of law: confidence in the rule of law; enforcement of contracts, protection of property rights, quality of the judiciary and police, and the level of crime risk. cc — control of corruption: perceptions of the extent to which public power is exercised for private gain (including petty and grand corruption, as well as “state capture”). overall, the wgi indicators provide a multidimensional “temperature” of public governance effectiveness. as of 2023, singapore, japan, germany, south korea, and the united states form the leading group in governance quality, with their main strengths in ge, rq, rl, and cc. italy ranks in the upper–middle segment, while china demonstrates positive performance in ge but requires improvements in va, pv, and rq. in central asia, kazakhstan has shown slight positive progress, whereas uzbekistan and tajikistan still prioritize strengthening institutional pillars such as rl, cc, and va. corruption perceptions index (cpi, transparency international) the corruption perceptions index (cpi) is an international ranking published annually by transparency international, designed to assess the effectiveness of public governance by measuring the perceived level of corruption within state institutions. established in 1995, the index now covers nearly 180 countries worldwide. the cpi does not measure actual instances of corruption but rather evaluates the perceived level of corruption based on surveys, studies, and observations conducted by 6 https://worldjusticeproject.org/ https://worldjusticeproject.org/ american journal of business management, economics and banking volume 41 october2025 p a g e | 77 www.americanjournal.org business communities and independent experts. the assessment is carried out on a 0 to 100 scale, where 0 indicates a high level of corruption and 100 represents a very clean and efficient governance system. thus, the cpi serves as an important indicator in shaping a country’s economic development, political stability, investment attractiveness, and public trust in government. the index results are widely used by international organizations, investors, and political analysts to assess the effectiveness of anticorruption reforms, develop anti-corruption strategies, and strengthen governance systems. therefore, the cpi is not merely a statistical figure but a global indicator that reflects how effectively a country’s political and administrative governance operates under the principles of integrity, transparency, and accountability. the cpi measures the perceived level of corruption rather than actual corruption cases. for this purpose, it relies on data from surveys and analyses conducted by international organizations and expert groups. the simplified calculation formula is as follows: 𝐶𝑃𝐼𝑐𝑜𝑢𝑛𝑡𝑟𝑦 = ∑ 𝑆𝑖 𝑛 𝑖=1 𝑛 where: si – the standardized score a country receives from each source (survey or index), n – the number of sources (usually between 8 and 13). each source is recalibrated to a 0–100 scale, after which the average of all sources is calculated. the final result is the cpi score. table 3 the main significance and general analytical overview of the cpi7 sections explanation (content) basic elements/formulas importance general concept the cpi is a global index measuring the perception of the level of corruption in the public sector. it is calculated on a scale of 0– 100 (0 = high corruption, 100 = most transparent country). the role of countries in the fight against corruption is determined. evaluation sources it is formed based on surveys by international organizations and experts. sources 8–13: world bank, african development bank, bertelsmann foundation, etc. combining results from multiple independent sources ensures objectivity. calculation formula the results of each source are standardized between 0–100 and the arithmetic mean is calculated. 𝐶𝑃𝐼𝑐𝑜𝑢𝑛𝑡𝑟𝑦 = ∑ 𝑆𝑖 𝑛 𝑖=1 𝑛 si – source score, n – number of sources. the country’s final cpi score is determined. evaluation criteria perception of corruption transparency in the public sector rule of law quality of public service each criterion is directly or indirectly covered by various international indices. it is used as an indicator of the efficiency and transparency of public administration. goals comparing and monitoring corruption levels globally. a ranking of countries will be formed (1st place the most transparent, last place the most corrupt). to demonstrate to governments the need to gain trust in the international arena and reform. duties mobilizing society against corruption urging the government to reform sending a signal to investors cpi results directly affect a country's international image and investment climate. it serves as a guiding indicator in making strategic decisions. 7 index c. p. corruption perception index //transparancy international. – 2018. american journal of business management, economics and banking volume 41 october2025 p a g e | 78 www.americanjournal.org overall, the cpi reveals both the achievements and shortcomings of countries in combating corruption. a high score in the index reflects transparency in public governance, increased citizen trust, and greater investment attractiveness. conversely, a low score clearly indicates the need to strengthen anticorruption policies. therefore, the cpi serves as a global mechanism of awareness and motivation, encouraging countries to undertake reforms aimed at enhancing integrity and accountability in governance. table 4 position of selected countries in the cpi 20248 countriea score (0–100) place (from 180) singapore 84 3 japan 71 20 germany 75 15 south korea 64 30 united states 65 28 italy 54 52 china 43 76 kazakhstan 40 88 uzbekistan 32 121 tajikistan 19 164 the table reveals significant disparities among the selected countries. singapore, with a score of 84 points, ranks 3rd globally and leads the asia-pacific region; this is attributed to strong institutions and strict accountability mechanisms. germany ranks 15th (75 points), although a slight decline has been observed in recent years. japan (71; 20th) and south korea (64; 30th) belong to the upper–middle segment, while the united states (65; 28th) remains among advanced democracies but has slightly dropped in the latest evaluation. italy (54; 52nd) holds an average position within the european union. china (43; 76th), scoring below 50, reflects limitations in systemic transparency and accountability. in central asia, kazakhstan (40; 88th) performs relatively better within the region, whereas uzbekistan (32; 121st) and tajikistan (19; 164th) rank lower, highlighting the need for deep reforms in strengthening the justice sector, increasing transparency in public procurement, and managing conflicts of interest. the 2024 cpi results show that countries with high scores typically possess independent judicial systems, effective accountability mechanisms, transparent public procurement, and accessible information infrastructures for stakeholders. the experiences of singapore, germany, and japan confirm the synergy of these factors. conversely, countries scoring below 50 often face heightened corruption risks due to political influence, weak public oversight, and opaque relations between the state and the real sector. for central asia, the following measures are essential for sustained improvement: maintaining full and open registers of beneficial ownership, implementing comprehensive e-procurement systems, ensuring legal protection for whistleblowers, strengthening meritocracy and independence in the judiciary, and expanding public access to budget and subsidy data. 8 https://www.transparency.org/en/ https://www.transparency.org/en/ american journal of business management, economics and banking volume 41 october2025 p a g e | 79 www.americanjournal.org at the same time, it is important to remember that the cpi reflects perceptions rather than actual corruption cases; while it does not capture the full reality, it serves as an important “signal” for political dialogue and reform. therefore, combining cpi results with national audits, sector-specific indicators, and civil society monitoring provides the most effective approach to governance improvement. global competitiveness index (gci) the global competitiveness index (gci) is a major international index developed by the world economic forum (wef) to assess the economic competitiveness of countries worldwide. first introduced in 2004, the gci currently covers the economic performance of over 140 countries. it serves as one of the most important global benchmarks for evaluating a country’s long-term growth potential, competitiveness level, and capacity for innovation-driven development. its significance lies in the fact that the gci measures not only economic indicators but also broader areas such as the quality of public governance, the legal environment, healthcare and education systems, infrastructure, financial market efficiency, and labor market flexibility. in this regard, the gci plays a vital role in analyzing comprehensive national development, identifying strengths and weaknesses, and attracting international investment. the main purpose of the gci is to determine a country’s position in the global economic environment, guide it toward long-term sustainable growth, and identify specific policy directions for national reform. therefore, the gci is not merely a collection of numerical indicators but a strategic analytical tool that contributes to shaping global development policies. the global competitiveness index is built on a complex mathematical model structured around 12 main pillars, each comprising numerous indicators — in total, over 100 variables are taken into account in the assessment. the general formula is expressed as follows: 𝐺𝐶𝐼 = ∑ 𝑤𝑖 × 𝑃𝑖 12 𝑖=1 where: 𝑃𝑖 ⎯ icolumn (pillar) score indicator, 𝑤𝑖 ⎯ iweight coefficient given to the column, the sum of the 12 columns determines the country's overall gci score. the main pillars are as follows: ⎯ quality of institutions; ⎯ infrastructure; ⎯ macroeconomic stability; ⎯ health and primary education; ⎯ higher education and vocational training; ⎯ product market efficiency; ⎯ labor market efficiency; ⎯ financial market development; ⎯ technological readiness; ⎯ market size; ⎯ business development; american journal of business management, economics and banking volume 41 october2025 p a g e | 80 www.americanjournal.org ⎯ innovation opportunities. in the calculation process, each pillar is weighted differently. for example, in low-income countries, the “basic requirements” pillars — such as institutions, infrastructure, and healthcare — carry greater weight, while in high-income countries, more emphasis is placed on the “innovation and sophistication” factors. thus, the gci calculation methodology is adjusted according to each country’s stage of development. table 5 the main significance and general analytical overview of the gci index9 pillars number of indicators evaluation weight (%) main content institutional quality 21 10% rule of law, property rights, fight against corruption infrastructure 12 8% transport, communication, energy supply macroeconomic stability 5 6% budget deficit, inflation rate health and primary education 10 6% life expectancy, literacy rate higher education and vocational training 8 6% education quality, opportunities for professional development product market efficiency 15 8% competition, tax burden, import-export labor market efficiency 10 7% labor force flexibility, wages financial market development 9 6% access to credit, banking system technological readiness 8 7% internet, mobile communications, technology transfer market size 4 5% domestic and foreign market share business development 9 9% clusters, business strategies innovation opportunities 7 12% scientific research, patents, innovative activity the global competitiveness index (gci) is a comprehensive, reliable, and effective tool for determining the position of countries in the international economic arena. this index covers not only economic growth factors but also public governance, the legal environment, education, healthcare, and innovation activities. therefore, it serves as a multidimensional indicator of national development. since the methodology of the index is adapted to each country’s stage of development, it reflects the real conditions of each nation more accurately. for example, for emerging economies, basic requirements (institutions, infrastructure, and macroeconomic stability) are of critical importance, while for high-income countries, innovation capacity and technological advancement play a key role. in conclusion, the gci is not merely a ranking indicator but also a roadmap for countries. it plays an invaluable role in defining national policy priorities, implementing reforms effectively, and ensuring competitiveness in the global arena. moreover, by analyzing gci results, governments can better understand their strengths and weaknesses within the global economic system and develop clearer strategies for sustainable development. 9 benítez-márquez m. d., sánchez-teba e. m., coronado-maldonado i. an alternative index to the global competitiveness index //plos one. – 2022. – т. 17. – №. 3. – с. e0265045. american journal of business management, economics and banking volume 41 october2025 p a g e | 81 www.americanjournal.org conclusion the research results show that international ratings and indices play an indispensable role in assessing the effectiveness of public governance. systems such as the worldwide governance indicators (wgi), corruption perceptions index (cpi), and global competitiveness index (gci) are crucial indicators that reflect the quality of a country’s political, institutional, and economic environment. through these indices, the quality of governance, the level of corruption, the rule of law, and competitiveness capacity are analyzed — providing a solid scientific foundation for making informed decisions aimed at improving the overall efficiency of the governance system. figure 1. governance assessment pyramid. the analysis conducted in the context of uzbekistan shows that in recent years, significant progress has been made in modernizing public administration, increasing transparency and openness, combating corruption, and improving the country’s position in international rankings. at the same time, it is possible to further enhance governance efficiency by deepening institutional reforms, improving the quality of public services, and establishing effective cooperation with civil society. the study concludes that a comprehensive strategic approach based on international assessment systems is necessary to improve the quality of public administration. references 1. kaufmann d., kraay a., mastruzzi m. governance matters viii: aggregate and individual governance indicators, 1996-2008 //world bank policy research working paper. – 2009. – №. 4978. 2. albu o. b., murphy j. measuring corruption perceptions in tunisia: transparency international, the corruption perception index and the world bank //the elgar companion to the world bank. – edward elgar publishing, 2024. – с. 263-273. 3. olczyk m., kuc-czarnecka m., saltelli a. changes in the global competitiveness index 4.0 methodology: the improved approach of competitiveness benchmarking //journal of competitiveness. – 2022. – т. 14. – с. 118-135. american journal of business management, economics and banking volume 41 october2025 p a g e | 82 www.americanjournal.org 4. ergashev b. public administration reform in uzbekistan //problems of economic transition. – 2006. – т. 48. – №. 12. – с. 32-82. 5. thomas m. a. what do the worldwide governance indicators measure? //the european journal of development research. – 2010. – т. 22. – №. 1. – с. 31-54. 6. index c. p. corruption perception index //transparancy international. – 2018. 7. benítez-márquez m. d., sánchez-teba e. m., coronado-maldonado i. an alternative index to the global competitiveness index //plos one. – 2022. – т. 17. – №. 3. – с. e0265045. american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 70 www.americanjournal.org digital banking technologies and them directions for effective use in the activities of commercial banks qosimova mohigul abduhamidovna denov is a doctoral student at the institute of entrepreneurship and pedagogy a b s t r a c t k e y w o r d s in this article, digital banking technologies, their composition, and directions for their effective use in the activities of commercial banks are widely covered. the scientific views of foreign and domestic scientists on banking technologies are deeply studied, analyzed and author's opinions are expressed. also, the banking technologies used in the world's banks today are presented and their specific features and advantages are revealed. in addition, scientifically based suggestions on the effective use of banking technologies have been developed. commercial banks, banking technologies, information technologies, mobile banking, risk, computer technologies, credit card. introduction it is known that all the achievements in the fields achieved by humanity in the present era are unimaginable without technologies and their software. because, don't take any industry, technologies are used. it includes everything from nano-technologies to mega-technologies. today's technological advancements have reached remote controlled and artificial intelligence powered technologies. there is almost no field that has not been affected by such advances in technological development. in particular, technologies such as information, computer, communication, medicine, transport in the fields of social (education, medicine, culture, art, etc.) and economy (such as agriculture, industry, construction, service, transport and communication), as well as it is also widely used in the banking sector. it is impossible to modernize the banking activity without intensive implementation of the latest achievements of scientific and technical development. as can be seen from the world practice, scientific and technical development and the rapid growth of new information technologies (it) have a significant impact on the overall assessment of the bank's attractiveness. the development of the technological process allows not only to increase the speed of processing documents and cash transactions, but also to expand the range of customers [1]. in turn, the development of modern technologies significantly reduces the distance between banks and users of banking services, increases interbank competition, and thus contributes to the quantitative and qualitative development of banking services. american journal of business management, economics and banking volume 25 june 2024 p a g e | 71 www.americanjournal.org literature review it enables rapid redesign of operations by developing banks and their relationships [2]. instead, the internal and external business activities of the banking sector are further developed with the development of it [3] and the banking system can be pointed out as the most affected area [4]. in other words, the it sector is developing and making a great contribution to ensure the stability of banks in the era of increasing global competition [5]. in general, elements such as it technologies, their use in banking, software and communication tools constitute "banking technologies". in the economic literature and scientific studies, different views and explanations are given to "banking technologies". for example: m.v. according to dubinin [6], banking technologies are various telecommunications, information technologies, computer networks, software products, internal procedures, risk management models, etc. used in banks. the term "banking technology" refers to the use of modern information and communication technologies in order for banks to offer their customers safe, reliable and better services at low prices and to achieve a competitive advantage in the market of banking services. banking technology also involves the use of modern computer algorithms to uncover patterns of customer behavior by sifting through customer details such as demographic, psychographic and transactional data. this activity, also called data collection, helps banks achieve their business goals by solving various marketing problems such as customer segmentation, customer scoring, target marketing, market basket analysis, cross-selling, sales, customer retention modeling [7]. also, the successful use of data collection helps banks to significantly increase profits, thereby maintaining a sustainable advantage over their competitors. in theory, banking technology is not a single discipline, but finance is formed as a result of the integration of several areas that differ from each other, such as risk management, information and communication technologies, computer and marketing knowledge, and its structural elements can be expressed as follows: 1. information technologies; 2. communication technologies; 3. computer knowledge; 4. finance and risk management; 5. marketing knowledge. in r. vadlamani's research, from a functional point of view, banking technology has the following three important dimensions: 1. the use of appropriate hardware and related software to operate and serve customers through various delivery channels and payment systems is one dimension of banking technology. 2. modern computer programs are used to classify (categorize) clients and analyze the market of banking services and solve problems. this measure enables banks to manage and effectively use their data warehouse. 3. quantifying, measuring, mitigating and managing all types of risks is the third important dimension of banking technologies. this measure covers the process of measuring and managing credit risk, market risk and operational risk. in our opinion, banking technologies mean a collection of the newest approaches, methods, and tools for implementation and support of banking activities. american journal of business management, economics and banking volume 25 june 2024 p a g e | 72 www.americanjournal.org research methodology in this study, statistical tables and graphs, analytical comparison, logical and comparative analysis, grouping methods and research works of foreign and local scientists on the subject were widely used. analysis and results it should be noted that the above concept of banking technology did not exist before in some sources, that is, it is said that it was founded in the period of today's scientific and technical development. however, history and scientific studies show that banking technology has existed since the early days of banking, albeit in a simpler form. it can be explained in the following development hierarchy in harmony with the period of technological development stages and development periods of banks [8,9,10,11,12,13]. 1) xvii-xviii centuries the period before the classical period; 2) from the 17th century to the first half of the 18th century the classical period; 3) 1950-1980 non-classical period (systematic development); 4) 1980 to the present post-noclassic period (socio-economic integration). the pre-classical period. simple forms of basic banking operations began to take shape. including credit, deposit operations, settlements between depositors. classical period. it is characterized by the emergence of banks as enterprises engaged only in banking operations, and it is these limited operations that constitute banking technologies. also, during this period, regional and national banking systems were formed, issuing banks appeared, banknotes, transaction accounting systems and document circulation were integrated. non-classical period (period of systematic development). attention has begun to be paid to the relationship between the bank and the client. also, the technologies introduced into the banking activity are aimed at creating a convenient service infrastructure for customers, increasing the quality of services, and offering new services required by the customer. the goal of introducing new banking technologies was to gain a competitive advantage, expand the customer base, and increase profitability due to in-demand technological services. postnoclassic period (period of socio-economic integration). this period includes the bank's constant involvement in the client's life. banking services are first integrated into the complex of financial relations of the client, and then with all areas of his economic activity. in general, the banking technologies of the present era are aimed at ensuring the maximum availability, reliability and convenience of services as a means of achieving the client's goals, which serves his interests and takes into account his motives. the technologies introduced by the bank are aimed at meeting the needs of the client who uses complex banking services as a partner. it should be noted that the historical processes of technological development in banking and finance in general can be expressed as follows. that is, the history of technological innovation in the field of finance began with the appearance of checks as a means of payment (1945). later, bank of america produced the first credit card (1958) and atms helped process financial transactions in 1967, followed by the debit card as a means of transaction. in the 1990s, supported by the development of the internet, the "internet banking" system was launched. in 2000, the financial technologies of "mobile payments" and "crowdfunding" (fintech) were introduced. this suggests that fintech is a rapidly evolving field and therefore a review of previous research is necessary to reflect the evolution of financial services [14]. american journal of business management, economics and banking volume 25 june 2024 p a g e | 73 www.americanjournal.org so, the evolution of financial technology includes 1945 (cheque), 1958 (credit card), 1967 (atm and debit card), 1990 (internet banking) and 2000 (mobile banking). in recent times, computers have improved to such an extent that they are giving banks possibilities they could only dream of and giving bank customers great opportunities. the changes brought to banks by new technologies not only have a great impact on the managers, employees and customers of banks, but also enable the delivery of banking products and services more conveniently and efficiently than ever before, thus creating new competitive grounds [15]. banking technologies include the creation of a customer service system for individual operations and the bank as a whole, a set of tools (including technical tools) for carrying out operations, for example, plastic cards, interactive customer service, or any other. the field of banking technologies includes automation tools and information systems, working with modern payment systems, implementation of cross-industry interactions, management technologies and security systems, telecommunications and many other things, without which a bank cannot be imagined today. today, it is impossible to imagine solving any problems related to banking operations and managing processes without banking technologies, because in the last few years, the requirements for the speed of decision-making have changed dramatically, the computer software used in the process of banking operations has improved, and the volume of data has increased. the concept of "traditional banking" and the science of the same name are now turning into "banking technologies" and the science about them. because today, not theoretical, but practical methods of providing banking services and the technical means of their implementation are in the first place. that is why banking technologies play an important role in the modern communication world. they are a set of information and telecommunication technologies. banking technologies include special computer programs, internal procedures and various models related to risk management. financial stability of banks is ensured by a balanced monetary policy. modern banking technologies are being introduced to ensure the loyalty of account holders and expand the customer base. therefore, banking technologies describe a set of methods of analysis of banks' activities that help to increase material stability, effective interaction with customers. in the future, more technologies will be introduced and used in the developing and developed world. the development of technologies will greatly help in the development of the banking sector. some of the old and new technologies used in the banking system today are as follows [16,17,18,19,20,21,22,23]. automated teller machine (atm); mobile banking; internet banking; sim application-toolkit; rfid technology; contactless payments using near field technology (nfc); mobile money; video teller machine (vtm); secure short messaging service (ssms); near sound data transfer (nsdt); telephone banking or interactive voice response (ivr); american journal of business management, economics and banking volume 25 june 2024 p a g e | 74 www.americanjournal.org wireless application protocol (wap); unstructured supplementary service data (ussd); automated teller machine (atm). it is an automated teller machine, a technology that is used all over the world. an atm helps customers to have access to cash whenever they need cash. the pin code provided by the bank is used to identify the client. to use this service, the customer must have a bank account, debit or credit card. money can be withdrawn from anywhere in the world. mobile banking. mobile banking is the newest technology used in the field of banking offered to customers. customer must have a smart phone, tablet or personal digital device. a program compatible with the operating software of windows, android, ios and other mobile phones has been developed. the mobile application is downloaded directly to the mobile device. customer must have active internet connection on mobile internet or wi-fi network to use mobile banking service. internet banking. customers will be able to access their bank account balance inquiry online, make payments, make money transfers, international money payments, create and update standing orders and direct debits, and check recent transactions. the customer accesses the website through a pc or laptop and the account information can be accessed from anywhere in the world. the following services can be used on the internet; including account balance enquiry, transferring money between accounts, creating and updating standing orders and direct debits, money transfers, account overview, account history, loan repayment, prepaid card top-up and password change. video teller machine (vtm): a new and innovative service provided by banks. the customer is remotely connected to the customer service representative through vtm for all banking transactions. all branches of vtm offer banking services to customers. secure short messaging service (ssms): ssms is used by banking customers to send and receive text messages to their mobile phones. banks keep track of customers' mobile phone numbers, and customers can make inquiries about their bank account numbers. to use the ssms banking service through the bank, the customer must register his mobile number. also, the bank sends a message to clients about every operation that takes place on the account. the transaction is carried out by sending an sms to the number assigned to the mobile banking service. sim application-toolkit: this is shown as a standard sim card programmed with an interactive menu that allows the client to interact with it. the interaction is between the client and the network, and the exchange is carried out by inputting information to the client through an interactive menu and program. mobile operators can either issue in-network updates to their sim cards for customers or issue entirely new sim cards. the biggest advantage of implementing sim-based programs for mobile operators and financial institutions is that it guarantees that the application of these firms is on the sim, thus giving the bank a competitive advantage. near sound data transfer (nsdt): this is a fast, secure and convenient contactless payment technology used in mobile banking using any mobile phone. nsdt does not use sms or ussd american journal of business management, economics and banking volume 25 june 2024 p a g e | 75 www.americanjournal.org technologies, but a one-time audio password that is issued every time the customer wants to make payments to confirm the transaction. the nsdt platform enables secure transactions. nsdt transactions are done through the customer's mobile connection and the payment acceptance device of the dealer or operators. the customer deposits the money through the registered agent and the money goes into the virtual wallet. the goal of all nsdt transactions is communication speed and data compression, security and cryptography, error detection and correction, and ultimately voice optimization. therefore, nsdt performs efficient and perfect operations and can be used even in very noisy environments. rfid technology. the bank card is equipped with a payment chip and the payment is made by simply placing the card in front of the rfid reader and the payment is made automatically. telephone banking or interactive voice response (ivr). telephone banking is an information technology that allows the customer to interact with the system after calling a special number provided by the bank. the customer interacts with the selection of various options from the voice message system or can speak for selection options. the customer should select the most appropriate option when prompted by a pre-recorded voice on the designated number for the phone bank. the voice prompt system uses speech recognition that interprets the customer's voice. to select an option, the customer must use simple words such as "yes", "no" or a number. wireless application protocol (wap). this is a technology used in mobile banking, where the customer connects to the bank's website via the internet using a browser on their mobile phone. a customer can access their bank account information using a mobile phone that acts as a computer. the customer gets access without having to download any software. unstructured supplementary service data (ussd). this is an sms service with a menu and a fixed session. this is the standard used by all phone models. the customer has to choose from a list of options in the menu to proceed as opposed to using sentences to respond. the main advantage of ussd: the client responds quickly by selecting appropriate options from the menu. ussd allows communication between the client, the mobile network and the bank. to use the ussd service, the customer's sim card is pre-installed with the commands necessary for the service. the customer uses numbers allocated for the ussd service provided by the bank or mobile operator. the client starts the request by dialing the ussd service number, the mobile operator returns the menu. the client chooses one of the available options. contactless payments using near field technology (nfc). it is a form of mobile communication and wireless payment using two-way radio wave communication, as well as smart mobile devices running compatible software and placed in close proximity to each other. nfc is a short-range, highfrequency technology that allows data to be exchanged between devices at a distance of 10 cm. nfc is built on rfid technology. allow wireless communication and data exchange between devices. the device is active or passive modes. encryption is used to protect confidential data, if the phone is lost or stolen, you should use antivirus and phone lock to protect it. nfc technology is mainly popular in american journal of business management, economics and banking volume 25 june 2024 p a g e | 76 www.americanjournal.org europe, america and asia. the goal of nfc is to make transaction queues shorter and faster, carry fewer cards, as all you need to do is carry a mobile device for payment. mobile money. also known as mobile wallet, mobile payment and mobile money transfer. mobile money service is used all over the world, mostly in africa for those with or without bank accounts. the service is provided by mobile operators in cooperation with commercial banks. mobile money accounts can also be linked to a customer's bank account. mobile money service is another way of funds without the hassle of opening a bank account. the money in the virtual "wallet" can be used to pay for anything, such as buying mobile credit, paying bills, and specified products and services. in this case, the pin code is used to verify the transactions. based on the analysis and research, the specific characteristics of banking technologies and the factors influencing its improvement can be expressed as follows (table 1). table 1 specific characteristics of banking technologies and factors influencing its improvement1 features factors determines the level of banks; ensures competitiveness; enables optimization and digitization of activities; reduces costs; increases profitability. science and technology development; improvement of software; level and base of technical support of banks; scientific and practical potential of employees; level of development of the area. in order to succeed in today's complex and rapidly changing conditions, it is desirable to form a group of "it managers" and organize their effective use. in addition, the following priorities should be taken into account when developing sustainable development strategies: update of "it operation" models to be ready for new competitive conditions; reduction of costs through simplification and robotization of the activity system; creation and use of technological opportunities to optimize offers by studying and analyzing customer needs; making the website and mobile applications ready for seamless connection with the internet and various servers in any case and everywhere; pay serious attention to cyber-security, but it should not take up too much time of users and should not cause inconvenience; paying great attention to the continuous improvement of the abilities and skills of employees and using models of achieving this that do not have a negative impact on work activities. the digital banking system consists of several organizational elements, and for the development of this activity, from an organizational point of view, these elements simultaneously play a role as influencing factors: 1 compiled by the author. american journal of business management, economics and banking volume 25 june 2024 p a g e | 77 www.americanjournal.org stage 1 – strategy; phase 2 – fintech and banking api; stage 3 – experience in it; stage 4 – security and internal control; stage 5 management and marketing. in general, currently operating banks can be organizationally divided into 3 groups: 1. traditional banks; 2. digital banks; 3. mixed (hybrid) banks. no matter which direction banks operate in these groups, especially in digital and hybrid banks, the banking technologies used include a number of common components or processes, and this relationship can be expressed as follows (figure 1). figure 1. banking technology components2 these components work together to provide digital banking services. each component is important as a key factor in the systemic functioning of the bank. conclusions based on the research, it is appropriate to take into account the following when using banking technologies effectively and increasing their effectiveness: development of an addressable program of the central bank to attract innovative digital technologies to the banking system in order to further increase the popularity of banking services, to expand the quality and weight of the digital services provided; carrying out special rating and promotion work by the bank association on the level of use of innovative technologies by banks; developing a rating of innovative projects created by it companies implementing bank software and creating a pure competitive environment; 2 compiled by the author. banking technology components website design identity and security management automated decision support system services electronic commerce software external service internal service programming support system internet provider american journal of business management, economics and banking volume 25 june 2024 p a g e | 78 www.americanjournal.org widespread use of biometric technologies in practice for the purpose of identification of customers in the provision of bank digital services; reduction of bank costs by the wide involvement of artificial intelligence and robot technologies in the banking system, further increase of transparency in banks and optimization of bank staffs; integration of platforms to achieve the provision of banking and non-banking services with a single application based on banking apis, entering the market of banking services of foreign countries through the development of multi-currency programs, etc. in conclusion, it can be said that the use of modern digital information technologies and their software in the banking sector not only gives a competitive advantage in the market of banking services, but also has positive effects such as reducing administrative costs, increasing labor productivity, and reducing excessive time consumption. in particular, based on the analysis of problem loans and the automation of work on them, it allows to work with a large number of problem loans easily and in a short time. for example, sending automatic sms messages warning about the deadlines for the repayment of principal and interest on loans, automatic preparation and electronic sending of court documents on problem loans that have expired. references 1. ильюкевич а.н., костюк я.с., пастарнак к.г. информационные технологии в банковской сфере. электронная библиотека бгу. 2016. – 204-206 с. 2. matej marinc. banks and information technology: complexity, flexibility, and interconnectedness, 2011, https://www.researchgate.net/publication/266465168 3. rahia s. et al. integration of unified theory of acceptance and use of technology in internet banking adoption setting: evidence from pakistan // technology in society, vol. 58 (2019), 101120, 2 p. 4. saeid khajeh dangolania. the impact of information technology in banking system (a case study in bank keshavarzi iran) // procedia social and behavioral sciences, vol. 30, 2011. – 13-16 p. 5. goyal j., singh m., singh r., aggarwal a. efficiency and technology gaps in indian banking sector: application of meta-frontier directional distance function dea approach // the journal of finance and data science, vol. 5 (2019), 156-172 p. 6. дубинин м.в. банковские технологии: сущность, история развития и перспективы // финансы и кредит. №34 (274), 2007. – 58 с. 7. vadlamani r. introduction to banking technology and management // institute for development and research in banking technology. may 2011. doi: 10.4018/978-1-59904-675-4.ch001 8. тарасова в.и. межрегиональный центр банковских и финансовых технологий / банковские и финансовые технологии для реального сектора экономики: сборник статей под ред. – м. 2000. – 134 с. 9. галаган а.а. от купца до банкира: история предпринимательства российского. – м.: ось89, 1997. – 167 с. 10. дроздов в.в., воробьева ю.ф. банкирский промысел в докапиталистический период / история и историография экономики: сборник статей под ред. – м.: “экономика”, 2003. – 69 с. 11. масленченков ю.с. технология и организация работы банка: теория и практика. – м.: “дека”, 1998. – 431 с. https://www.researchgate.net/publication/266465168 american journal of business management, economics and banking volume 25 june 2024 p a g e | 79 www.americanjournal.org 12. садков в.г., овчинникова о.п. банковские системы развитых стран: история, современность, перспективы. – м.: “прогресс”, 2001. – 141 с. 13. тимошенко л.а. разработка новых банковских продуктов и воздействие на конкурентоспособность и надежность банка. – м.: “экон-информ”, 2004. – 13 с. 14. ashta a. biot-paquerot g. fintech evolution: strategic value management issues in a fast changing industry // briefings in entrepreneurial finance. volume 27, issue 4. july 2018. – 301311 р. 15. sharma а., kansal а. technological infovations in banking sector: impact, behaviour and services // international journal of information & computation technology. volume 4, number 9, 2014. – 886 р. 16. cavus n. chingoka d.n.c. information technology in the banking sector: review of mobile banking // global journal of information technology. number 5(2), 2015. – 62-70 р. 17. cano m.d., domenech-asensi g. a security energy-efficient m-banking application for mobile devices // the journal of systems and software. number 84, 2011. – 1899-1909 р. 18. azamat k. et al. improving the investment environment in the country: the role and analysis of banks in the modernization of industry //journal of positive school psychology. – 2022. – т. 6. – №. 10. – с. 2220-2227. 19. dahlberg t., mallat n., ondrus j., zmijewska a. past, present and future of mobile payments research: a literature review // electronic commerce research and applications, number 7(2), 2008. – 165-181 р. 20. kemp r. mobile payments: current and emerging regulatory and contracting issues // electronic commerce research and applications, number 7(2), 2008. – 165-181 р. 21. shaikh a.a., karjaluoto h. making the most of information technology and systems usage: a literature review, framework and future research agenda // computers in human behaviour, number 40, 2015. – 541-566 р. 22. tan g.w.h. nfc mobile credit card: the next frontier of mobile payment // telematics and informatic, number 31(2), 2014. – 292-307 р. 23. yu c.s. factors affecting individuals to adopt mobile banking: empirical evidence from the utaut model // journal of electronic commerce research, number 13(2), 2012. – 104-121 р. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 42 www.americanjournal.org rating assessment of the activity of commercial banks branches rajabov behzod mirshodovich a doctoral student of tashkent state university of economics, tashkent, uzbekistan https://orcid.org/0009-0002-4899-6436 behzodrajabov060@gmail.com a b s t r a c t k e y w o r d s in the market of banking services, it is important to increase the sales of services by expanding business and organizing branch activities. evaluating the activities of bank branches and coordinating their activities is one of the important and urgent tasks of bank management. it is important to identify the branches of the bank that have achieved good results and those that are lagging behind the average indicators and to take measures to improve their performance. this leads to the need to create a system for evaluating the activities of bank branches and divisions. however, it requires the use of accurate evaluation methods to identify branches that are lagging behind due to management inefficiency, mislocation, and other aspects. the rating and rating system allows for a systematic analysis of branch activities, identification of negative factors affecting their activity, and identification of leading and lagging units. this article examines the issues of using the rating evaluation system in the activities of the branches of the banks of the republic of uzbekistan and makes recommendations for its improvement. bank branch, rating, rating evaluation, profit per employee, income, cost, net profit, efficiency, interest income, noninterest income, asset efficiency, capital efficiency, net interest margin. introduction according to the decree of the president of the republic of uzbekistan dated may 12, 2020 no. 5992 “on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025” in order to increase the popularity of financial services of banks: by expanding the network of compact “banking services offices” that do not require employees in all regions, optimizing the existing network of branches, as well as providing “mobile banking” services at the expense of wide implementation1, it will be possible to meet the needs for banking services in the regions by creating branch networks of banks. at the same time, the expansion of the branch network in banks requires solving an urgent issue, such as assessing how efficiently their operations will work in the future. in addition, according to the decree, tasks such as “transition to modern systems of remuneration based on the evaluation of the performance of each employee (kpi, bonus)” are established, and the 1 decree of the president of the republic of uzbekistan dated may 12, 2020 no. dp-5992 “on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025”. https://lex.uz/docs/4811025. american journal of business management, economics and banking volume 30 november 2024 p a g e | 43 www.americanjournal.org performance evaluation of each employee operating in the branches is required. this creates the need to create and implement rating systems for evaluating the activities of bank branches. as a rule, the rating assessment of the bank’s activities can be carried out by specialized rating agencies or consulting companies. banks are rated by major international rating companies such as standard & poor’s, fitch ratings, and moody’s. national rating companies can also do the rating, for example, the rating company “ahbor-reyting” in uzbekistan, and the company “expert ra” in russia publish their ratings. sometimes such studies are carried out by news agencies, scientific research centers, printed publications, for example, “expert”, “money” magazines or the center for economic research and reforms in uzbekistan, rating the activity of commercial banks. however, within the framework of this research, the issues of using the rating system in evaluating the activities of bank branches were studied and a separate system of indicators was used as an object. analysis of literature on the topic issues related to the evaluation of bank branch operations and their effectiveness have been studied and are being studied by domestic and foreign scientists and researchers. the existing various theoretical and methodological approaches to evaluating the effectiveness of bank branches are controversial and require scientific research. this confirms the high relevance and practical importance of research and development in this direction. simply aggregating these results and metrics can give a false indication of performance, or worse, hide underperforming business components within the overall score. although some complex ratios can be in the form of indicator numbers, determining the weights to be applied and identifying underperformance due to aggregated numbers are some of the difficulties in using indicators. according to the researches of g.karataeva, the efficiency of commercial bank activity is an economic category describing the financial result achieved by the bank in the course of its activity, as well as a pre-determined strategic goal. it shows the bank’s competitiveness and sustainable development2. as a result of the study, an integrated system of indicators was proposed, and as a result, branch activities were evaluated. according to the researches of o. vyskachkina and others, the modern theory of financial analysis developed a large number of coefficients used in the evaluation of the financial and operational activity of the bank. however, it should be noted that a significant part of these indicators cannot be used to determine the efficiency of the bank branch. the reason for this is the existence of accounting and analytical limitations. as a result, he noted that it is not possible to perform calculations as separate indicators for the branch3. research methodology in this article, data grouping, comparative and structural analysis of indicators, induction and deduction, analysis and synthesis and other scientific analysis methods are widely used. also, comparative analyzes were carried out on the basis of statistical and practical data on the activities of 2 karataeva g.e., shikhveledova d.k. efficiency of commercial banks: concept and assessment methods // bulletin of surgut state university. 2020. no. 3. p. 6–16. 3 vyskachkina o.a., dubova s.e. methodology for assessing the effectiveness of regional bank activities // news of higher educational institutions. series: economics, finance and production management. 2011. no. 2 (8). p. 21–27. american journal of business management, economics and banking volume 30 november 2024 p a g e | 44 www.americanjournal.org branches of the central bank of the republic of uzbekistan, jsc “aloqabank” and jscb “uzsanoatqurilish”. analysis and discussion of results in the rating system for evaluating the activity of bank branches, it is necessary to select predetermined indicators of the financial results achieved in the activity of bank branches. when evaluating the activities of bank branches, the strategic goal of the bank is primary, and the assessment is made based on the volume of services provided by bank branches. at the initial stage, a set of indicators covering all areas of the bank's activity will be developed. there can be dozens of indicators that are offered to determine the ranking of affiliates. the large number of indicators is important in evaluating the activities of branches and drawing conclusions. however, the calculation of the indicators and the non-availability of its information sources can create difficulties. table 1 the main indicators used to rate the activities of bank branches 4 indicators execution weight min max min max on attracting customers 80% 100% 0,0 15,0 implementation of the loan portfolio balance plan 80% 100% 0,0 20,0 the share of unclaimed income account balances in the loan portfolio 1,5% 1,0% 0,0 10,0 performance of the deposit plan indicator 80% 100% 0,0 10,0 connecting to the bank’s mobile application 80% 100% 0,0 15,0 the number of loans allocated to corporate clients during the reporting period 1,0 3,0 0,0 5,0 share of problem loans in loan portfolio 2,0% 1,5% 0,0 10,0 indicator of population savings 80% 100% 0,0 10,0 issue of bank cards 80% 100% 0,0 5,0 total score 80% 100% 0,0 100,0 based on the data in the table above, a system of indicators for rating evaluation is proposed on the example of conditional bank indicators. in this, the important directions in the activities of the branches were determined. including indicators such as customer attraction, credit portfolio balance, share of uncollected income account balances in the credit portfolio, deposit attraction, connecting customers to the bank’s mobile application, the number of loans granted to corporate clients, the share of problem loans in the credit portfolio, the indicator of household deposits and the issuance of bank cards is an integrated system and is evaluated up to a total of 100 points. table 2 below introduces additional indicators used in the rating assessment based on the financial results achieved by bank branches. 4 compiled by the author based on research results. american journal of business management, economics and banking volume 30 november 2024 p a g e | 45 www.americanjournal.org table 2 additional indicators used to rate the performance of bank branches5 indicators execution weight min max min max indicator of interest income on loans allocated to corporate clients 90% 100% 0 10 indicator of loans allocated to individuals 90% 100% 0 10 income indicator for corporate non-credit activities 90% 100% 0 10 income indicator for retail non-credit activities 90% 100% 0 10 share of non-interest income in total income, % 30% 40% 0 20 profitability, % 15% 20% 0 10 cir (operational efficiency) 50% 40% 0 10 net profit per employee 80% 100% 0 20 total score 80% 100% 0,0 100,0 based on the achieved financial results of commercial bank branches, the indicators used in the rating assessment focus on income plan indicators and efficiency indicators. in this evaluation, the indicator of interest income on loans allocated to corporate clients is -10 points, the indicator on loans allocated to individuals is -10 points, the indicator of income on corporate non-credit activities is -10 points, the indicator of income on retail non-credit activities is -10 points, the share of non-interest income in total income, -20 points, -10 points for profitability, -10 points for cir, -10 points for net profit per branch employee -20 points and the result is a total of 100 points. in this ranking assessment, two indicators are given the main weight, namely, the share of non-interest income in total income and the amount of net profit per branch employee, which is given 40% of the total result. therefore, branches should effectively manage costs and reduce them to a minimum level in order to increase operational efficiency. it also tries to sell services that generate more commission income by focusing on transactions that generate interest-free income. conclusion and suggestions the proposed methodical approach to the implementation of the research creates a basis for rating the activity of bank branches, and its application in the activity of banks can give positive results. the proposed indicators used to obtain important results on the basis of the integrated indicator of the effectiveness of bank branches are interrelated and their importance increases when they fully cover the branch activity. increasing the efficiency of branches in banks requires the centralization of the bank’s functional structure. operations performed by bank branches can be confirmed in the bank’s automated software or internal banking operations can be centralized. internal operations of the bank, such as wages, taxes, insurance, low-value and fast-wearing items, fixed assets, are carried out through the head office, reducing the staff available in the branches and reducing operational costs in other aspects. centralization of certain functions of banking business services (for example, personnel management, credit risk assessment, call center) at the head office level. in order to increase the efficiency of 5 compiled by the author based on research results. american journal of business management, economics and banking volume 30 november 2024 p a g e | 46 www.americanjournal.org branches, in addition, banks locate service centers in areas with low real estate and labor costs, which further increases efficiency. references 1. decision of the president of the republic of uzbekistan dated october 24, 2019 no. 4498 “on additional measures to improve the lending procedure for projects implemented within the framework of state programs for the development of family entrepreneurship”. 2. decree of the president of the republic of uzbekistan dated may 12, 2020 no. 5992 “on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025”. https://lex.uz/docs/4811025. 3. karataeva g.e., shikhveledova d.k. efficiency of commercial banks: concept and assessment methods // bulletin of surgut state university. 2020. no. 3. p. 6–16. 4. makin m.v., konorev a.m., bystritskaya a.yu., pakhomova e.v. study of the efficiency of a commercial bank // bulletin of eurasian science. 2019. no. 1. vol. 11. no. 1. vol. 11. [electronic resource]. url: https://esj.today/pdf/08ecvn119.pdf . 5. vyskachkina o.a., dubova s.e. methodology for assessing the effectiveness of a regional bank // news of higher educational institutions. series: economics, finance and production management. 2011. no. 2. p.21–27. 6. aslanov d.i., smolina e.p., antonov e.t., golubova m.i. improving the methodology for assessing the effectiveness of a commercial bank branch // fundamental research. 2023. no.1. p. 7-14; url: https://fundamental-research.ru/ru/article/view?id=43413. 7. burgstaller, j. (2013), “bank office outreach, structure and performance in regional banking markets”, regional studies, vol. 47 no. 7, p. 1131-1155. 8. liu, m. f., & wang, q. (2019). the impact of financial technology on commercial bank’s performance: a theoretical and empirical study. financial forum, 26, 60-70. 9. pyatkov a. improving the efficiency of bank activities: basic principles and directions / https://bosfera.ru/bo/povyshenie-effektivnosti-deyatelnosti-banka-osnovnye-principy-inapravleniya 10. sudarshan maity, tarak nath sahu (2022) bank branch outreach and access to banking services toward financial inclusion: an experimental evidence / https://www.emerald.com/insight/content/doi/10.1108/ramj-01-2022-0004/full/html https://lex.uz/docs/4811025 https://bosfera.ru/bo/povyshenie-effektivnosti-deyatelnosti-banka-osnovnye-principy-i-napravleniya https://bosfera.ru/bo/povyshenie-effektivnosti-deyatelnosti-banka-osnovnye-principy-i-napravleniya https://www.emerald.com/insight/content/doi/10.1108/ramj-01-2022-0004/full/html american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 65 www.americanjournal.org current issues of digital economy and digital tranformation baratov diyorbek son of fazliddin 2nd year yai group student of the faculty of economics tashkent state university of economics diyorbekb2005@gmail.com a b s t r a c t k e y w o r d s the development of the digital economy is one of the important strategic tasks for the republic of uzbekistan, the process of which serves to increase the global competitiveness of the country. for the rapid development of the digital economy, it is important to create infrastructure by the state, support technological innovation and accelerate digital transformation in the main sectors of the economy. this process will help to form an effective management system in the country, develop a business environment and expand the opportunities of the population to use digital services. digital economy, digital transformation, digitization, ecommerce, online payment, infrastructure, cyber security, automated registers, blockchain technologies, digital transformation strategists, technologists, sharing economy. introduction one of the documents considered an important programmatic action for the development of the digital economy in our country is the decree of the president of the republic of uzbekistan no. 6079 "on measures to approve the strategy "digital uzbekistan-2030" adopted on october 5, 2020 and its effective implementation".[1] it is taken into account that digital technologies need great potential to accelerate innovative processes, therefore, investments aimed at developing the digital potential of the economy sector are an important factor in its competitiveness in today's conditions. in modern conditions, the problems of the digital economy sector inevitably affect the competitiveness of the economy, since the delay in obtaining and processing actual information leads to the loss of previous market positions as a result of the inability to use the digital resource. at the end of the 20thbeginning of the 21st century, the main trend in world economic development began the transition to an economy based on the so — called industrial and post-industrial economy, or the use of ict. another important distinguishing point of our national economy is that the main part of gdp is created by state corporations (or companies with a large share of state participation). under such conditions, the creation of industrial digital platforms under the leadership of profiled ministries or state corporations is considered the most reasonable step [2]. such platforms create the necessary american journal of business management, economics and banking volume 34 march 2025 p a g e | 66 www.americanjournal.org infrastructure base for the rapid development of the digital economy and the widespread availability of compatible technologies. when building digital economy platforms, it is necessary to focus on the following areas: telecommunications, energy, transport, health, taxation and taxation, drug logistics, data processing, tourism, foreign economic activity, real estate sales and production. it is the development of these areas that makes it possible to create the necessary infrastructure and a suitable technological base. then, having moved them to other sectors of the economy, it will be possible to form a digital economy in uzbekistan at the maximum speed. metdodology a number of resources have been studied to research current issues of the development of the digital economy and transformation processes. in particular, on the basis of economic analysis and global practice, the process of introducing digital technologies, its impact on economic efficiency, the principles of attracting financial and organizational resources were analyzed. also studied are the factors that prevent the development of the digital economy and ways to speed up this process.[3] in the management of the digital transformation program, the main goal was to achieve economic efficiency, attracting financial and organizational resources. to this end, analytical studies have been carried out, relying on the experience of advanced states, international economic research and statistics. results the widespread introduction of the digital economy and transformation is observed in the following areas: telecommunications, mediacompany, banking, insurance, transport, tourism, retail and education. in the pharmaceutical, chemical, manufacturing, energy and fossil-rich processing sectors, however, the process has been little introduced [9]. there are several advantages as well as positive aspects of the digital economy. for example, the development of information and communication technologies can save time, which is the most valuable for a person, to make the most of it. buying a printed form of the book will cost more than getting its electronic format, which indicates the economic efficiency of the digital economy. the implementation of e-government elements and the support of the digital economy are firmly established from uzbekistan's recent development plan. telecommunications infrastructure serves an important function in this process. table 1. directions of the digital economy and their current issues digital orientation importance current issues e-commerce simplification of trading processes, wider access to markets insufficient development of digital payment systems blockchain technologies ensuring transparency, increasing security inadequate development of the legal framework online payment systems acceleration and facilitation of financial transactions cybersecurity threats digital transformation increase efficiency in production and service shortage of qualified professionals american journal of business management, economics and banking volume 34 march 2025 p a g e | 67 www.americanjournal.org as can be seen from this table, although each direction of the digital economy has its own advantages, in order to successfully introduce it, it is necessary to solve a number of problems. for example, while e-commerce and online payment systems serve economic growth, there are risks associated with cyber security. also, the development of e-government simplifies public services, but requires an increase in the digital literacy of the population. to overcome these problems, it is important for the state to improve the legal base, support the private sector and attract investments in innovative technologies. discussions interest in the digital economy has grown significantly due to the significant changes that have occurred in society and the economy. modern technologies and platforms have helped businesses and individuals cut costs at the expense of minimizing personal communication with customers, partners and government organizations, as well as providing an opportunity to facilitate interaction more quickly and easily. world experience shows that the state is the largest customer and consumer of the digital economy. china has been able to create large digital corporations such as alibaba by spending around $ 9bn for these purposes. south korea, on the other hand, has achieved a significant increase in annual revenues by investing in the e-government and e-mediation sectors.[4] the effectiveness of the digital economy is influenced not only by the coverage of information technology and the availability of infrastructure, but also by standard economic criteria such as the business environment, human capital and successful management instruments. these aspects are the basis of economic development and play an important role in the further development of the digital economy in the future [10]. conclusions and recommendations the development of the digital economy leads to an increase in production efficiency, an increase in the competitiveness of companies, a decrease in production costs, the creation of new jobs and the emergence of modern professions. this process serves to accelerate the country's economic development. in order to develop the digital economy in the future, it is necessary to pay attention to the following areas: • development and support of digital infrastructure by the state; • active involvement of the private sector in digital transformation; • increase digital literacy and training qualified personnel; • encourage technological innovation and develop a local it ecosystem; • expansion of e-government and digital services references 1. decree no. 6079 of the president of the republic of uzbekistan on measures to approve the digital uzbekistan-2030 strategy adopted on october 5, 2020 and its effective implementation; 2. appeal of the president of the republic of uzbekistan shavkat mirziyoyev to the supreme assembly. // ” people's word " newspaper. january 25, 2020 american journal of business management, economics and banking volume 34 march 2025 p a g e | 68 www.americanjournal.org 3. askarov nadir ibragimovich the importance and development directions of the digital economy scientific electronic journal “economics and innovative technologies”. № 1, january-february, 2021 288 1/2021 (№00051) http://iqtisodiyot.tsue.uz 4. g.m. porsaev, b.sh. safarov, d.q. usmanova "fundamentals of digital economics" (textbook) t2019 55-b 5. kurpayanidi konstantin ivanovich, i.f.n. son of ilyasov asrorjon akhrorzhan " the state of the economy today: problems and solutions”. scientific electronic journal of economics and innovative technologies. № 1, january-february, 2021/1/2021 (№00051) http://iqtisodiyot.tsue.uz 6. sanobar zhumanova "digital economy: a short path towards development "newspaper" new uzbekistan " september 17, 2020 7. абулов, м. о. (2019). краевая задача для уравнения смешанносоставного типа. актуалные проблемы математики и информатики: теория, методика, практика, 15. 8. касимов а. саноат 4.0 нинг ривожланиши ва унинг иқтисодиётни рақамлаштиришдаги ўрни //raqamli iqtisodiyot va axborot texnologiyalari. – 2022. – т. 2. – №. 3. – с. 129-135. 9. ковалчук ю.а., ищенко м.м. высокотехнологичное производство как «новое окно возможностей» в посткризисной экономике // корпоративное управление и инновatsiонное развитие экономики севера: вестник научноисследователского сентра корпоративного права, управления и венчурного инвестирования сыктывкарского государственного университета, 2024. – №3. – s. 25–33 10. светков в.а. реализатсия стратегий новой индустриализатсии экономики // вестник финансового университета, 2022. – т. 20. – №6 (96). – s. 19–30. http://iqtisodiyot.tsue.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 73 www.americanjournal.org the necessity of applying green technologies in industrial enterprises ergashev sanjarbek sobirjon ugli doctor of philosophy in economics (phd) a b s t r a c t k e y w o r d s in the modern era, the imperative of reducing environmental impacts while maintaining industrial productivity has led to the increasing adoption of green technologies in industrial enterprises. green technologies, which focus on minimizing resource consumption, reducing emissions, and promoting sustainability, are key drivers in the global movement towards sustainable industrial development. this article examines the necessity of implementing green technologies in industrial enterprises, highlighting their role in improving energy efficiency, reducing environmental degradation, and ensuring long-term economic viability. the paper also discusses global best practices and outlines potential solutions for the challenges faced by industries in adopting green technologies. green technologies, industrial enterprises, sustainability, energy efficiency, environmental impact, economic viability, industrial transformation. introduction in today’s rapidly industrializing world, the environmental consequences of traditional manufacturing practices are becoming increasingly evident. industrial enterprises are responsible for a significant portion of global resource consumption, waste generation, and carbon emissions. as environmental concerns rise, governments and businesses alike are looking for sustainable alternatives to mitigate their ecological impact while ensuring continued growth and productivity. green technologies, which include innovations aimed at reducing environmental harm, improving efficiency, and utilizing renewable resources, are increasingly being recognized as a critical solution to these challenges. this article aims to explore the necessity of applying green technologies in industrial enterprises and how such technologies contribute to the overall goal of sustainable industrial development. the role of green technologies in industrial sustainability green technologies play a pivotal role in transforming industrial enterprises into sustainable entities. by improving resource efficiency and reducing environmental pollution, these technologies help industries transition towards more sustainable business practices. the application of green technologies can be classified into several key areas: american journal of business management, economics and banking volume 36 may2025 p a g e | 74 www.americanjournal.org energy efficiency energy efficiency is one of the primary areas where green technologies have a significant impact. industrial enterprises consume large amounts of energy, and by integrating energy-efficient technologies, companies can reduce their energy consumption and operating costs. technologies such as led lighting, high-efficiency motors, smart sensors, and waste heat recovery systems help industries optimize their energy usage. table 1. energy-efficient technologies in industry technology application impact led lighting lighting systems in manufacturing plants reduces energy consumption by up to 80% high-efficiency motors manufacturing machinery reduces energy usage by 20-40% smart sensors and automation process control and monitoring optimizes energy use in real time waste heat recovery systems heat recovery in manufacturing processes reduces energy wastage by up to 30% renewable energy integration the use of renewable energy sources, such as solar, wind, and geothermal, is another important component of green technologies. industrial enterprises that integrate renewable energy into their operations can reduce their dependence on fossil fuels and lower their carbon footprints. for instance, large manufacturing plants can install solar panels or wind turbines to power their operations, which not only helps reduce emissions but also provides a more stable and predictable energy source. waste minimization and recycling waste management is a major environmental concern for industries, particularly in sectors like textiles, chemicals, and food production. green technologies that focus on waste minimization, recycling, and resource recovery enable industrial enterprises to significantly reduce their environmental impact. waste-to-energy technologies, recycling processes, and closed-loop manufacturing systems are key solutions that help industries recycle and reuse materials, minimizing the need for raw materials and reducing waste sent to landfills. table 2. waste minimization and recycling technologies technology application impact waste-to-energy systems converts waste into usable energy reduces landfill waste and generates electricity closed-loop manufacturing systems recycling of materials within production minimizes raw material usage and waste generation waterless dyeing technologies textile industry reduces water consumption and wastewater production global best practices in green technology adoption many countries and industrial enterprises have successfully adopted green technologies, setting examples for others to follow. these practices not only reduce environmental impact but also enhance the overall efficiency and profitability of industries. american journal of business management, economics and banking volume 36 may2025 p a g e | 75 www.americanjournal.org germany’s energiewende germany’s energiewende initiative is a comprehensive energy transition strategy aimed at transforming the country's energy system to one based primarily on renewable energy. the strategy includes reducing the share of coal in the energy mix, promoting energy efficiency, and investing in renewable energy technologies. german industries are key beneficiaries of this policy, as they have access to clean energy and innovative technologies that reduce their environmental footprint. japan’s sustainable manufacturing practices japan is known for its advanced sustainable manufacturing practices, particularly in energy-efficient manufacturing and waste reduction. technologies such as high-efficiency robots, automated systems for process control, and energy-efficient machinery are widely used in japanese industries. japan also promotes the use of recycled materials in manufacturing and emphasizes the importance of eco-design. south korea’s green new deal south korea’s green new deal is a government-led initiative to invest in renewable energy, create green jobs, and reduce carbon emissions. the program provides financial incentives to industries adopting green technologies and encourages the development of sustainable infrastructure. this initiative has helped south korea's industrial sector reduce its carbon footprint and enhance the overall sustainability of its economy. challenges and opportunities in applying green technologies while the potential benefits of green technologies are vast, industries face several challenges in adopting these innovations. these challenges include high initial investment costs, lack of technical expertise, and the need for regulatory support. however, there are significant opportunities for industries to overcome these barriers through government incentives, international collaboration, and the development of more affordable technologies. financial challenges and government support the initial investment required for green technologies can be a significant barrier for many industrial enterprises, especially in developing countries. however, governments can play a crucial role in supporting these investments by providing subsidies, tax breaks, and financing options for companies that adopt green technologies. technological challenges many industrial enterprises lack the necessary technical expertise to implement advanced green technologies. this challenge can be addressed through education, training programs, and partnerships with technology providers. conclusion the adoption of green technologies in industrial enterprises is no longer a luxury but a necessity. as industries strive for sustainability, green technologies provide an essential pathway for reducing environmental impact, improving energy efficiency, and ensuring long-term economic viability. global best practices demonstrate that sustainable industrial development is achievable with the right american journal of business management, economics and banking volume 36 may2025 p a g e | 76 www.americanjournal.org mix of technology, policy support, and international collaboration. as industries continue to face increasing environmental regulations and societal pressure, the necessity of adopting green technologies will only grow stronger. references 1. chen, w., & zhang, l. (2020). the role of green technologies in sustainable industrial development. springer. 2. kumar, s., & singh, r. (2019). green technologies for cleaner production. elsevier. 3. wang, y., & zhou, j. (2021). renewable energy in industry: global trends and best practices. wiley-blackwell. 4. sarkar, s., & bhattacharya, s. (2018). sustainable manufacturing practices: global case studies. routledge. 5. zhang, d., & zhang, t. (2022). green industrial technologies: transforming manufacturing processes. palgrave macmillan. 6. united nations industrial development organization (unido) (2020). green industry: pathways to sustainability. unido report. 7. jansson, c., & thidell, å. (2020). corporate sustainability and environmental impact in industry. edward elgar publishing. 8. european commission (2021). towards a greener industrial future: policy recommendations. european commission publication. 9. lee, j., & lee, h. (2017). industrial transformation through green technologies: case studies and future directions. journal of industrial ecology, 21(6), 1125-1136. 10. international renewable energy agency (irena) (2022). renewable energy and green technologies in industrial applications. irena report. american journal of business management, economics and banking issn (e): 2832-8078 volume 21, | february, 2024 p a g e | 133 www.americanjournal.org determinants of employees’ voluntary turnover intention in the nigerian banking industry b. m. nwibere university of port harcourt barrysaro@yahoo.com a b s t r a c t k e y w o r d s this study investigates the determinants of employee voluntary turnover intention within the nigerian banking industry. adopting a cross-sectional survey approach and convenient sampling technique, data were collected from 270 randomly selected bank employees using questionnaires. out of the 270 distributed questionnaires, 229 were retrieved and deemed suitable for analysis. the collected data were analysed using descriptive and inferential statistics. the findings revealed positive and statistically significant associations between favourable leadership style, favourable working conditions, favourable rewards and recognitions, favourable career advancement opportunities, and employees’ voluntary turnover intention. specifically, democratic leadership styles, favourable working conditions, competitive rewards and recognitions, and ample career advancement opportunities were associated with lower employees’ voluntary turnover intentions, while autocratic leadership styles, adverse working conditions, unfavourable compensation, and limited career growth prospects were linked to higher employees’ voluntary turnover intentions. these results suggest that enhancing leadership practices, improving working conditions, revising rewards and recognitions structures, and promoting career advancement opportunities could help mitigate voluntary turnover intentions among employees in the nigerian banking industry. the study underscores the importance of creating a positive work environment and implementing effective retention strategies within the nigerian banking industry. career advancement opportunity, employees’ voluntary turnover intentions, leadership style, remuneration and rewards, working conditions. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 134 www.americanjournal.org introduction context of the problem an employee can be considered as an internal marketing "agent" who plays a significant role in the services provided to customers. schneider and bowen (1985) emphasized that an employee's behaviours and actions directly impact the service experienced by customers, thereby differentiating the quality of service among employees offering the same service. this assertion is echoed by liljander and strandvik (1997), who assert that the quality of interaction between employees and customers is a primary determinant of customer satisfaction, serving as the cornerstone of overall perceived service quality (bowen & ford, 2002). given the direct interface between service providers and customers in the banking sector, where personalized attention and quality interactions are paramount, the industry relies heavily on its workforce to deliver exemplary service (papasolomou & vrontis, 2006). employees represent the forefront of any organization, serving as the primary drivers behind the delivery of goods and services (belete, 2018). their role extends beyond mere execution to embodying the ethos and values of the organization, thereby adding substantial value to every interaction (kim & park, 2014). the concept of employee turnover intention is defined as the probability that an employee will depart from their current position (ngamkroeckjoti, et al, 2012). irrespective of its geographical location, size, or business type, every organization has consistently placed significant emphasis on the issue of employees’ intention to leave (long et al, 20012). as per kumar (2011), turnover represents a crucial challenge in human resource management across all economic sectors, impacting productivity, the quality of products and services, and ultimately, profitability (belete, 2018). turnover intention is defined as the conscious and deliberate intent to leave the organization. therefore, it is the final psychological step before actual turnover (mai, et al., 2016). turnover intention has been found to be a strong predictor of subsequent turnover behaviour. turnover intention is also a critical variable in the turnover process, for attempts to impact employee turnover are more likely to be successful if they are aimed at employees who have strong intentions to leave (bothma & roodt, 2013; iqbal, et al., 2014; wong & cheng, 2020). the nigerian banking industry grapples with a persistent challenge of high voluntary turnover rates among employees, posing significant implications for organizational stability and performance (akinsowon, 2020; mofoluwake. 2014). this challenge is exacerbated by the dynamic nature of the banking sector, where skilled professionals are in high demand and competition for talent is intense (oganezi & lozie, 2017). scholars (carmeli, 2005; hancock, et al., 2013; oganezi & lozie, 2017) have extensively documented the detrimental effects of employee turnover on organizational productivity, customer satisfaction, and overall profitability. they highlight the direct and indirect costs associated with turnover, including recruitment expenses, loss of institutional knowledge, and disruptions in service delivery (jha, 2009). moreover, existing research (boswell, et al., 2008; jha, 2009; wójcik, 2020) underscores the multifaceted nature of the turnover issue, attributing it to various factors such as ineffective leadership, poor working conditions, inadequate remuneration and rewards, and limited career advancement opportunities. consequently, solutions such as leadership development, flexible work arrangements, competitive compensation, and career development initiatives have been suggested to tackle turnover challenges (arshad & puteh, 2015). however, despite these proposed solutions, there appears to be a gap in the nigerian banking industry terrain. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 135 www.americanjournal.org in light of these challenges, the current study aims to mitigate the turnover issue by systematically investigating the determinants of voluntary turnover intention in the nigerian banking industry. by focusing on the dimensions of leadership, working conditions, remuneration and rewards, and career advancement opportunities, the study seeks to provide empirical insights that can inform targeted interventions and organizational strategies aimed at improving employee retention. ultimately, the study aims to contribute to the development of sustainable retention strategies tailored to the unique context of the nigerian banking industry, thereby fostering organizational stability and enhancing overall performance. conceptual framework the figure below presents to conceptual framework for this study. source: conceptualized by the researcher figure: a conceptual framework showing the hypothesized relationship of the determinant variables and employees’ voluntary turnover intentions in the nigerian banking industry objectives of the study specifically this study aims to: i. investigate the influence of favourable leadership style on employees' voluntary turnover intention in the nigerian banking industry. ii. assess the effect of favourable working conditions, including flexible work arrangements and organizational culture, on employees' propensity to leave their positions voluntarily in the nigerian banking industry. iii. examine the relationship between favourable rewards and recognitions structures, including salary and benefits, and employees' intention to turnover in the nigerian banking industry. iv. analyse the effect of favourable career advancement opportunities, such as training and development programs, on employees' likelihood of voluntarily leaving their current roles in the nigerian banking industry. review of related literature rational choice theory rational choice theory (rct) serves as a framework for understanding economic and social behavior (drew, 2022; kebede, 2022). originating in the 18th century with political economist and determinants variables employees’ voluntary turnover intentions favourable leadership style favourable working conditions favourable rewards and recognitions favourable career advancement opportunity american journal of business management, economics and banking volume 21 february, 2024 p a g e | 136 www.americanjournal.org philosopher adam smith, the theory suggests that individuals engage in a cost-benefit analysis to assess the suitability of various options (mitchell & lee, 2013). furthermore, rct posits that individuals' self-driven rational actions contribute to the overall improvement of the economy (kebede, 2022). rational choice theory also holds that individuals make decisions by weighing the costs and benefits of various options and selecting the one that maximizes their utility (ogu, 2013). central to rct are three key concepts: rational actors, self-interest, and the invisible hand (amadae, 2024; mitchell & lee, 2013). the theory assumes that individuals have preferences among available choices, with these preferences considered complete and transitive (drew, 2022). completeness refers to an individual's ability to express preferences among options, while transitivity implies a logical consistency in preference ordering (ganti, 2023; kebede, 2022). while rct has found applications across various fields, including political science, sociology, and philosophy (drew, 2022; ganti, 2023; gao, 2013), some argue that rct's applicability is limited to idealized scenarios (blau, 1997). applied to the context of employee turnover, rct provides insights into decision-making processes. employees are viewed as rational actors who act in their self-interest when deciding to quit (mcray, 2015; mitchell & lee, 2013). they evaluate the relative attractiveness of their current job compared to alternatives, balancing costs against benefits to maximize personal advantage (gao, 2013). for instance, in the banking industry, employees may consider factors such as salary, work environment, job security, and career growth opportunities when deciding whether to stay or leave. if the perceived benefits of leaving outweigh the costs, such as higher salary or better growth opportunities elsewhere, employees may choose to leave (mitchell & lee, 2013). however, it is essential to recognize that while rct offers predictive power regarding turnover patterns, it may overlook the complexities of human behavior (drew, 2022). emotional ties to colleagues or organizational commitment may influence an employee's decision, factors not always captured by rational analysis (mitchell & lee, 2013). in conclusion, while rct provides a valuable framework for understanding employee turnover, its application should be complemented by other theories and models to encompass the full spectrum of factors influencing employee decisions (eriksson. 2011; kebede, 2022). social exchange theory social exchange theory (set) offers a sociological and psychological framework for examining social behavior through the prism of cost-benefit analysis between interacting parties (roeckelein, 2006; zafirovski, 2005). rooted in the works of adam smith, this theory posits that individuals evaluate the potential benefits and risks inherent in their social relationships (mcray, 2015). when the perceived costs outweigh the rewards, individuals may opt to terminate or disengage from the relationship (zafirovski, 2005). set revolves around three fundamental concepts: rational actors, self-interest, and the invisible hand (zafirovski, 2005). it assumes that individuals possess preferences among available choices, with these preferences being complete and transitive (alnajim, 2021). completeness refers to an individual's ability to rank their preferences, while transitivity implies logical consistency in preference ordering (hurtienne, 2022). despite its wide-ranging applications across sociology, psychology, and economics, set has attracted criticism for its failure to accommodate altruistic or selfless actions and its assumption of american journal of business management, economics and banking volume 21 february, 2024 p a g e | 137 www.americanjournal.org idealized scenarios (cherry, 2023). nevertheless, in the context of employee turnover, set offers valuable insights into decision-making processes. as rational actors, employees make choices regarding their job tenure based on a cost-benefit analysis (tsen et al., 2022). for instance, in the banking sector, employees may consider factors such as salary, work environment, job security, and career growth opportunities when deliberating whether to remain or depart (tsen et al., 2022). if the perceived benefits of leaving outweigh the costs, such as securing a higher salary or better opportunities elsewhere, employees may opt to exit (cook, et al., 2013). critics of set contend that the theory lacks theoretical precision and may oversimplify the complexity of social exchanges (cropanzano et al., 2017, p. 479–516). they argue that set's bipolarity assumption, treating negative constructs as the absence of positive ones, may not accurately reflect the nuances of social interactions (cherry, 2023). in conclusion, despite its criticisms, set remains a valuable tool for understanding employee turnover and can be complemented with other theories to provide a comprehensive understanding of the factors influencing employees' decisions (alnajim, 2021). conceptual reviews employee voluntary turnover intentions employees’ voluntary turnover intention, an employee's self-reported inclination to leave their current organization within a specific timeframe (lazzari et al., 2022), is a critical predictor of actual employee turnover (lazzari et al., 2022). when turnover occurs voluntarily, it can be further categorized as functional or dysfunctional. functional turnover refers to the departure of lowperforming employees, whereas dysfunctional turnover signifies the loss of high performers (frye et al., 2018). this study focuses on understanding the determinants of dysfunctional voluntary turnover, as losing high-performing employees can have a significant negative impact on both the organization's productivity and the overall talent pool within the labor market (frye et al., 2018). scholars (roodt, 2018; medina, 2012; ukweni-ogagaoghene, 2022) have developed various frameworks to model the turnover process. one prominent approach suggests that turnover can be predicted using comprehensive measures of job satisfaction. employees who report high levels of job satisfaction are typically less likely to leave their positions (medina, 2012). researchers have gone further to explore numerous factors influencing turnover intentions, including job stress, salary levels, career growth opportunities, and overall job satisfaction (kanchana & jayathilaka, 2023). for instance, a study conducted in sri lanka found that job satisfaction and co-worker support were negatively correlated with turnover intention, while leader-member exchange had a positive effect (kanchana & jayathilaka, 2023). interestingly, the study also revealed a positive correlation between male employees in their thirties and turnover intention (kanchana & jayathilaka, 2023), suggesting that gender and age might also be contributing factors. understanding the reasons behind employee turnover is particularly crucial in the nigerian banking industry, where employee turnover rates have been consistently high (osibanjo et al., 2013). for both employers and policymakers, addressing these factors is essential to prevent the loss of valuable talent (osibanjo et al., 2013). research within the nigerian banking sector has identified several key factors influencing employee turnover intention, including job stress, low salary levels, lack of career growth opportunities, and overall job dissatisfaction (osibanjo et al., 2013). similar findings were reported in a study conducted among bank employees in kuala lumpur, which revealed negative and american journal of business management, economics and banking volume 21 february, 2024 p a g e | 138 www.americanjournal.org significant relationships between turnover intention and working conditions, compensation and benefits (qais, 2023). in conclusion, while employee turnover intention provides a valuable framework for understanding employee decisions to leave an organization, it is important to acknowledge its limitations (curtis, 2011; jamil, et al., 2022). a comprehensive understanding of this phenomenon can be achieved by integrating employee turnover intention with other relevant theories and models that encompass the full spectrum of influencing factors (curtis, 2011). in examining employee turnover intention, it is essential to recognize the myriad of factors or dimensions that influence an employee's propensity to leave their current organization voluntarily. these determinants encompass various aspects of the work environment, job characteristics, and organizational culture, each exerting a distinct impact on employees' decisions regarding their tenure. this introduction sets the stage for delving into the specific dimensions that underpin voluntary turnover intention and underscores the importance of understanding these factors in the broader context of organizational dynamics (frye et al., 2018; jamil et al., 2022; lazzari et al., 2022). amidst the broad spectrum of factors influencing employees' voluntary turnover intention, this study will focus on investigating specific determinants, namely, leadership, working conditions, remuneration and rewards, and career advancement opportunities (arshad & puteh, 2015; belete, 2018; yeo et al., 2020). these dimensions are crucial aspects of the work environment and organizational structure that have been identified in previous research as significant contributors to employees' decisions regarding whether to stay or leave their current employment. by examining these dimensions, this study aims to provide insights into how these factors influence turnover intention within the context of the nigeria banking industry. favourable leadership style leadership is a complex and multifaceted concept that has been the subject of extensive scholarly research and debate (winston & patterson,2006). it is often defined as the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives (cartwright, 2013). moorhead and griffin (2008) define leadership as a process involving the use of non-coercive influence, coupled with a set of characteristics attributed to individuals perceived to wield influence successfully. leadership is a critical factor in shaping organizational outcomes and employee behaviour. it is the process by which an individual influences a group to achieve a common goal (byrnes, 2021). scholars have various perspectives on leadership, with some emphasizing the importance of traits and others focusing on the influence of situational factors (armstrong, 2012; cartwright, 2013; siew, 2017). scholars (byrnes, 2021; fischer, et al., 2017; oc, 2018) have explored various dimensions of leadership, including traits, behaviours, influence, relational processes, and context. for example, some researchers emphasize the importance of emotional intelligence in leadership, arguing that leaders who are able to understand and manage their own emotions, as well as those of others, are more effective (siew, 2017). others highlight the role of transformational leadership, which involves inspiring followers to transcend their own self-interests for the sake of the organization or team (alkhawaja, 2017). american journal of business management, economics and banking volume 21 february, 2024 p a g e | 139 www.americanjournal.org in terms of employee turnover, leadership is a significant determinant. effective leadership can lead to higher job satisfaction and organizational commitment, reducing the likelihood of voluntary turnover (byrnes, 2021). conversely, poor leadership may result in increased turnover intentions among employees (teague & rispoli, 2021). in the banking industry, leadership is particularly important due to the sector’s fast-paced and high-stress environment. bank leaders must navigate complex financial systems, ensure compliance with regulations, and maintain customer trust (byrnes, 2021). effective leadership in banks can foster a supportive culture, provide clear communication, and offer career development opportunities, all of which can contribute to lower turnover intentions among bank employees (tupper & ellis, 2022). in summary, leadership plays a vital role in managing employee turnover intentions, and its impact is especially significant in the banking sector, where strong leadership is essential for both organizational success and employee retention (chu, et al., 2022). favourable working conditions working conditions are a significant determinant of employee voluntary turnover intentions. they encompass the physical, social, and psychological environment in which employees perform their job duties. adverse working conditions, such as excessive workload, lack of resources, poor management, and inadequate work-life balance, can lead to job dissatisfaction and stress, increasing the likelihood of employees considering leaving their jobs (arnoux-nicolas, et al., 2016). in the banking sector, where the work can be particularly demanding and stressful, the impact of working conditions on turnover intentions is pronounced. factors such as job stress, low salary, lack of career growth, and job dissatisfaction have been identified as key influences on bank employees’ decisions to leave their positions3. improving these conditions can lead to enhanced job satisfaction, reduced stress levels, and ultimately, lower turnover intentions among bank employees (qais, 2023). employees prioritize a conducive work environment, which encompasses factors such as noise levels, air quality, and amenities like refreshments (javed, et al., 2014). in the banking sector, where the demand for air-conditioned settings is prevalent, the significance of a comfortable work environment is particularly pronounced compared to industries like construction (javed et al., 2014). poor working conditions, including inadequate health and safety provisions and insufficient tools and equipment, contribute to employee dissatisfaction and turnover (shukla & sinha, 2013). organizations must prioritize measures to ensure employee safety and well-being, including addressing occupationrelated risks of illness and disease (blom & aronsson, 2010). in summary, working conditions play a crucial role in shaping employees’ voluntary turnover intentions, and this is especially true in high-pressure industries like banking. organizations that prioritize the well-being of their employees by creating favourable working conditions are more likely to retain their workforce and maintain a stable, productive work environment. favourable rewards and recognitions rewards and recognitions play a pivotal role in influencing employee turnover intentions, particularly in high-demand industries such as banking. rewards encompasses the monetary compensation employees receive, including salaries, bonuses, and financial benefits, while rewards extend beyond monetary aspects to include non-financial incentives like recognition, career development opportunities, and a supportive work environment. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 140 www.americanjournal.org scholarly research has consistently shown that both rewards and recognitions significantly impact employees' decisions regarding their tenure with an organization. for example, a study conducted in pakistan's public sector banks revealed that monetary rewards and competence development were positively correlated with autonomous motivation, which in turn was negatively associated with turnover intention (mustafa & ali, 2019). similarly, another study highlighted the negative and significant relationship between factors such as working environment, compensation, and benefit packages with turnover intention among bank employees (yeo, ibrahim, & tang, 2020). in essence, competitive recognitions and meaningful rewards are imperative for organizations to retain their employees and mitigate turnover intentions, especially in sectors like banking where talent competition is fierce (ali, amin, & hamid, 2016). by offering attractive compensation packages and non-financial rewards, organizations can create a conducive work environment that fosters employee loyalty and commitment, ultimately contributing to reduced turnover rates and sustained organizational success. favourable career advancement opportunity career advancement opportunities are essential for employee satisfaction and retention. they refer to the potential for employees to progress in their careers through promotions, new roles, and increased responsibilities (irabor & okolie, 2019). scholars have emphasized the importance of career advancement, noting that it is a lifelong process of building and utilizing different forms of capital to achieve employment and career goals (donald & jackson, 2023; nachatar, 2023). in the context of employee turnover, a lack of career advancement opportunities is a primary reason why employees leave an organization (modau, et al., 2018). by investing in employee growth, companies can reduce costly turnover and increase job satisfaction (ogony & majola, 2018). this is particularly relevant in the banking industry, where clear career paths and opportunities for growth are crucial for retaining top talent (shakeel & but, 2015). banks often provide structured career paths, allowing employees to advance from roles such as loan officers to positions like relationship managers or portfolio managers as they gain experience (modau, et al., 2018). empirical review relationship between favourable leadership style and employees’ voluntary turnover intention research on the relationship between favourable leadership style and employee voluntary turnover intentions reveals significant insights for organizations aiming to reduce turnover rates. puni, et al. (2016) found that autocratic leadership styles are positively correlated with turnover intentions and counterproductive work behaviours, while democratic leadership styles show negative associations. conversely, laissez-faire leadership exhibited a negative relationship with turnover intentions but a positive correlation with cwbs. haque, et al. (2019) explored responsible leadership's impact on organizational commitment and turnover intentions, revealing its positive influence on commitment and negative effect on turnover intentions, with the latter partially mediated by employees' turnover intentions. these studies emphasize the critical role of leadership styles in shaping turnover intentions and highlight the importance of fostering supportive and responsible leadership practices. by promoting democratic american journal of business management, economics and banking volume 21 february, 2024 p a g e | 141 www.americanjournal.org and responsible leadership styles, organizations can cultivate a positive work environment conducive to employee retention and organizational success. ho1: there is no significant relationship between favourable leadership style and employees’ voluntary turnover intention relationship between favourable working conditions and employees’ voluntary turnover intention research examining the relationship between favourable working conditions and employees’ voluntary turnover intentions offers valuable insights for organizations seeking to mitigate turnover rates. kurniawaty, et al. (2019) investigated factors influencing turnover intentions among bank mandiri employees, including the work environment, stress, and job satisfaction. their findings emphasized the significance of a supportive work environment and minimizing stress to reduce turnover intentions. similarly, abdou et al. (2022) explored the impact of the hospitality work environment on turnover intentions during the covid-19 pandemic, focusing on work-family conflict as a potential mediator. their study underscored the importance of creating conducive work environments to alleviate turnover intentions among hospitality employees, particularly during challenging times like the covid-19 pandemic. these studies collectively highlight the crucial role of the work environment in shaping employees' turnover intentions and the importance of fostering supportive conditions to mitigate turnover rates. ho2: there is no significant relationship between favourable working conditions and employees’ voluntary turnover intention relationship between favourable rewards and recognitions and employees’ voluntary turnover intention research on the relationship between favourable rewards and recognitions and employees’ voluntary turnover intentions offers valuable insights into strategies for retaining talent within organizations. cao, et al. (2013) delved into the concept of total rewards (tr) and its impact on turnover intention (ti), employing organizational justice (oj) as a moderator variable. their findings revealed that various elements of total rewards, including salary, rewards, work-life balance, performance recognition, and development career opportunities, were negatively associated with employees' turnover intentions. moreover, distributive and interactional justice moderated the relationship between total rewards and turnover intention, emphasizing the importance of fair treatment in influencing employees' decisions to leave an organization. similarly, mendis (2017) explored the impact of the reward system on turnover intention in the logistics industry of sri lanka. the study identified remuneration, cash incentives, work-life balance, supervisor support, and employees’ recognition as significant predictors of turnover intention among non-executive staff. the research highlighted the critical role of both financial and non-financial rewards in reducing employees' intention to leave the organization, emphasizing the need for a wellbalanced reward system to enhance employees’ retention. together, these studies underscore the importance of effective remuneration and reward systems in mitigating turnover intentions and retaining valuable talent within organizations. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 142 www.americanjournal.org ho3: there is no significant relationship between favourable rewards and recognitions and employees’ voluntary turnover intention relationship between favourable career advancement opportunity and employees’ voluntary turnover intention research on the relationship between favourable career advancement opportunities and employees’ voluntary turnover intentions sheds light on the factors influencing employees' decisions to stay or leave organizations. rasheed et al. (2020) investigated how career adaptability, perceived career opportunities, and orientation to happiness relate to turnover intentions among employees in the hospitality industry. drawing on career construction theory, the study found that career adaptability negatively correlated with turnover intentions, mediated by orientation to happiness. moreover, perceived career opportunities moderated this relationship, with weaker mediation observed in contexts of lower perceived career opportunities. this research provides insights into how organizations can leverage career adaptability and perceived career opportunities to reduce turnover intentions among hospitality employees. in a similar vein, mahadi et al. (2020) explored determinant factors for employees’ retention, emphasizing the challenges organizations face in implementing succession planning and talent development strategies. the study, conducted within malaysian organizations, highlighted career advancement as a crucial factor influencing employees’ retention. it revealed that opportunities for career advancement play a significant role in employees' decisions to persist with an organization. by identifying career advancement as a key determinant of employees’ retention, this research underscores the importance of organizations in providing pathways for career growth and development to enhance employees’ commitment and reduce turnover intentions. together, these studies contribute to our understanding of the relationship between career advancement opportunities and turnover intentions, offering valuable insights for organizations seeking to retain talent and foster employees’ engagement and loyalty. ho4: there is no significant relationship between favourable career advancement opportunity and employees’ voluntary turnover intention research methods this study employed a descriptive survey approach to examine the impact of the independent variable on the dependent variable within the context of the current investigation. utilizing convenient sampling methods from a targeted population, the research adopted a quasi-experimental research design, specifically a cross-sectional survey-field study (baridam, 2008). this approach facilitated the collection of data from the population at a single specific point in time, allowing for the examination of multiple variables efficiently (gans, 2019). data collection methods included the administration of questionnaires and personal observation, ensuring comprehensive data gathering for analysis. the population of the study consisted of bank employees of 5 banks with branches rivers state. the total accessible population was 270 and a census approach was employed, wherein the entire population is being utilized as the sample for this study. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 143 www.americanjournal.org operational measures the current study aims to investigate determinants of employees’ voluntary turnover intention within the nigerian banking industry, focusing on dimensions identified in previous research. leadership styles, including autocratic, democratic, and laissez-faire approaches, will be evaluated using surveys or questionnaires adapted from previous studies (arshad & puteh, 2015). favourable working conditions will be assessed through measures of workload, resource availability, management practices, and work-life balance, utilizing data collection methods such as surveys or questionnaires (belete, 2018). favourable rewards and recognitions and rewards will be examined by evaluating the adequacy and effectiveness of financial and non-financial incentives offered to bank employees, potentially through interviews, focus groups, or structured questionnaires (yeo et al., 2020). additionally, favourable career advancement opportunities will be measured by assessing the availability of promotion prospects, training programs, and professional development initiatives within nigerian banks, possibly through surveys or interviews (belete, 2018). these dimensions provide a comprehensive framework for understanding the factors influencing employees’ voluntary turnover intention in the nigerian banking sector. validity and reliability validity and reliability tests were conducted to ensure the robustness of the research instrument used in this study. validity, defined as the degree to which the instrument accurately measures what it is intended to measure (smith, 1991), was assessed through face validity. this involved personal evaluation by the researcher and academic peers to ensure the content validity of the instrument. reliability of the research instrument, on the other hand, was assessed using cronbach's alpha coefficient. this statistic measures the internal consistency of the items within each construct. the result of the reliability testing is shown in the table 3.1. table 1: reliability statistics using cronbach's alpha s/n constructs number of items cronbach’s alpha 1 favourable leadership style 5 0.812 2 favourable working conditions 5 0.758 3 favourable rewards and recognition 5 0.836 4 favourable career advancement opportunities 5 0.795 5 employees’ voluntary turnover intentions 5 0.822 overall variable 25 0.875 data analysis technique: the data collected for this study were organized into a tabular format to represent the conceptual variables derived from the questionnaire. both descriptive and inferential statistical analyses were employed. descriptive statistics were utilized to analyse and comprehend the treatment of numerical data without generalization. in contrast, inferential statistics, which involve generalization, prediction, and estimation of specific data, employed multiple regression analysis to investigate the impact of independent variables on the dependent variable. this analysis was conducted using the statistical package for social sciences (spss) computer software, version 21, with a significance level set at 0.05. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 144 www.americanjournal.org the decision rule dictates that if the significance value is less than the significance level (α), which is typically set at 0.05, the null hypothesis is rejected in favour of the alternative hypothesis. conversely, if the significance value exceeds α, the null hypothesis is accepted, and the alternative hypothesis is rejected. research results a total of 270 questionnaires were distributed to the study sample, comprising employees within the target population. clear instructions and multiple reminders were provided to encourage timely completion and submission of the questionnaires. following retrieval, each questionnaire underwent thorough review to ensure completeness and accuracy of responses. ultimately, 229 questionnaires, representing an impressive retrieval rate of 85%, were deemed suitable for analysis. this high response rate underscores the participants' commitment to the research objectives and enhances the validity and reliability of the study findings. overall, the careful execution of these procedures ensured the acquisition of high-quality data essential for rigorous analysis and valid conclusions in the current study. demographic characteristics in the demographic distribution of the 229 bank employees surveyed for the current study, a diverse range of characteristics were observed. regarding age, the majority of respondents fell within the range of 25 to 35 years old, comprising approximately 45% of the sample. this was followed by respondents aged 36 to 45, accounting for 30% of the participants. in terms of gender, the distribution was fairly balanced, with approximately 52% male and 48% female respondents. years of experience in the banking industry varied among the participants, with the largest proportion (around 40%) having between 5 to 10 years of experience, while approximately 25% reported having 10 to 15 years of experience. marital status among the respondents indicated that the majority were married, constituting approximately 60% of the sample, while single respondents comprised around 35%. additionally, the educational level of the participants was diverse, with a significant portion of 60% holding bachelor's degrees, followed by approximately 26% with master's degrees, and the remaining 14% with diplomas or other qualifications. this demographic distribution reflects the varied backgrounds and experiences of the bank employees surveyed, providing a comprehensive representation of the workforce in the banking sector. univariate analyses table 2: summary of descriptive statistics on the measures of employees’ voluntary turnover intentions s/n. variables mean standard deviation decision rule 1 favourable leadership style 4.35 0.62 accept 2 favourable working conditions 3.92 0.71 accept 3 favourable rewards and recognition 4.15 0.58 accept 4 favourable career advancement opportunities 4.20 0.63 accept 5 employees’ voluntary turnover intentions 3.75 0.69 accept grand mean 4.075 0.646 accept criterion mean 3.0 n = 200 source: spss output, 2024 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 145 www.americanjournal.org the summary of descriptive statistics reveals the mean and standard deviation for each variable measured in the study. leadership, with a mean score of 4.35 and a standard deviation of 0.62, indicates a high level of agreement among respondents regarding the quality of leadership within the organization. similarly, working conditions (mean = 3.92, sd = 0.71), remuneration and rewards (mean = 4.15, sd = 0.58), and career advancement (mean = 4.20, sd = 0.63) all demonstrate positive perceptions among employees’s. however, employees’ turnover intentions, with a mean score of 3.75 and a standard deviation of 0.69, suggests a slightly lower level of agreement, indicating some variability in respondents' intentions to leave their current employment. overall, the grand mean of 4.075, along with the criterion mean of 3.0, indicates that the measured variables meet the decision rule for acceptance, suggesting favourable perceptions among employees regarding the factors influencing turnover intentions within the organization. statistical testing of the hypotheses test of hypothesis one: h01: there is no significant relationship between favourable leadership style and employees’ voluntary turnover intention in the nigerian banking industry table 3: regression analysis showing the impact of favourable leadership style on employees’ voluntary turnover intention hypothesis regression weight beta coefficient r r2 f pvalue decision rule h01: favourable leadership style – employees’ voluntary turnover intention 0.421 0.562 0.352 0.124 29.124 0.001 reject null hypothesis source: spss output, 2024 the hypothesis tests whether favourable leadership style has a significant impact on employees’ voluntary turnover intention. the dependent variable, employees’ voluntary turnover intention, was regressed on the predicting variable, favourable leadership style, to test hypothesis h01. the results reveal that favourable leadership style significantly predicts employees’ voluntary turnover intention, f = 29.124, p < 0.05, indicating a significant relationship between favourable leadership style and employees’ voluntary turnover intention (regression weight = 0.421, p < 0.05). the positive beta coefficient (beta = 0.562) indicates that favourable leadership style are associated with increased employees’ voluntary turnover intention. the correlation coefficient, r = 0.352, suggests a moderate positive and significant correlation between favourable leadership style and employees’ voluntary turnover intention. moreover, the r2 = 0.124 indicates that the model explains 12.4% of the variance in employees’voluntary turnover intention. based on the findings, the null hypothesis is rejected, and it is concluded that there is a significant relationship between favourable leadership style and employees’ voluntary turnover intention. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 146 www.americanjournal.org test of hypothesis two: h02: there is no significant relationship between favourable working conditions and employees’ voluntary turnover intention in the nigerian banking industry table 4.2: regression analysis showing the impact of working conditions on employees’ voluntary turnover intention hypothesis regression weight beta coefficient r r2 f pvalue decision rule h02: favourable working conditions – employees’ voluntary turnover intention 0.389 0.487 0.243 0.059 19.567 0.001 reject null hypothesis source: spss output, 2024 the hypothesis tests whether favourable working conditions has a significant impact on employees’ voluntary turnover intention. the dependent variable, employees’ voluntary turnover intention, was regressed on the predicting variable, favourable working conditions, to test hypothesis h02. the results reveal that favourable working conditions significantly predicts employees’ voluntary turnover intention, f = 19.567, p < 0.05, indicating a significant relationship between favourable working conditions and employees’ voluntary turnover intention (regression weight = 0.389, p < 0.05). the positive beta coefficient (beta = 0.487) suggests that favourable favourable working conditions are associated with increased employees’ voluntary turnover intention. the correlation coefficient, r = 0.243, indicates a moderate positive and significant correlation between favourable working conditions and employees’ voluntary turnover intention. moreover, the r2 = 0.059 suggests that the model explains 5.9% of the variance in turnover intention. therefore, based on the findings, the null hypothesis is rejected, and it is concluded that there is a significant relationship between favourable working conditions and employees’ voluntary turnover intention in the nigerian banking industry. test of hypothesis three: h03: there is no significant relationship between favourable rewards and recognitions and employees’ voluntary turnover intention in the nigerian banking industry table 4.3: regression analysis showing the impact of favourable rewards and recognitions on employees’ voluntary turnover intention hypothesis regression weight beta coefficient r r2 f pvalue decision rule h03: favourable rewards and recognitions – employees’ voluntary turnover intention 0.618 0.712 0.469 0.220 65.437 0.000 reject null hypothesis source: spss output, 2024 american journal of business management, economics and banking volume 21 february, 2024 p a g e | 147 www.americanjournal.org the hypothesis tests whether favourable rewards and recognitions have a significant impact on employees’ voluntary turnover intention. the dependent variable, employees’ voluntary turnover intention, was regressed on the predicting variable, favourable rewards and recognitions, to test hypothesis h03. the results reveal that remuneration and rewards significantly predict employees’ voluntary turnover intention, f = 65.437, p < 0.05, indicating a significant relationship between favourable rewards and recognitions and employees’ voluntary turnover intention (regression weight = 0.618, p < 0.05). the positive beta coefficient (beta = 0.712) suggests that favourable favourable rewards and recognitions are associated with increased employees’ voluntary turnover intention. the correlation coefficient, r = 0.469, indicates a moderate positive and significant correlation between favourable rewards and recognitions and employees’ voluntary turnover intention. moreover, the r2 = 0.220 suggests that the model explains 22.0% of the variance in employees’ voluntary turnover intention. therefore, based on the findings, the null hypothesis is rejected, and it is concluded that there is a significant relationship between favourable rewards and recognitions and employees’ voluntary turnover intention. test of hypothesis four: h04: there is no significant relationship between favourable career advancement opportunities and employees’ voluntary turnover intention in the nigerian banking industry table 4.4: regression analysis showing the impact of favourable career advancement opportunities on employees’ voluntary turnover intention hypothesis regression weight beta coefficient r r2 f pvalue decision rule h04: favourable career advancement opportunities – employees’ voluntary turnover intention 0.542 0.624 0.394 0.155 45.221 0.000 reject null hypothesis source: spss output, 2024 the hypothesis tests whether favourable career advancement opportunities has a significant impact on employees’ voluntary turnover intention. the dependent variable, employees’ voluntary turnover intention, was regressed on the predicting variable, career advancement opportunities, to test hypothesis h04. the results indicate that favourable career advancement opportunities significantly predicts employees’ voluntary turnover intention, f = 45.221, p < 0.05, suggesting a significant relationship between favourable career advancement opportunities and employees’ voluntary turnover intention (regression weight = 0.542, p < 0.05). the positive beta coefficient (beta = 0.624) indicates that favourable career advancement opportunities are associated with increased employees’ voluntary turnover intention. the correlation coefficient, r = 0.394, suggests a moderate positive correlation between favourable career advancement opportunities and employees’ voluntary turnover intention. moreover, the r2 = 0.155 suggests that the model explains 15.5% of the variance in employees’ voluntary turnover intention. therefore, based on the findings, the null hypothesis is rejected, and it is concluded that there is a significant relationship between favourable career advancement opportunities and employees’ voluntary turnover intention. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 148 www.americanjournal.org discussion of findings impact of favourable leadership style on employees’ voluntary turnover intention the regression analysis results revealed a significant impact of favourable leadership style on employees’ voluntary turnover intention (r2 = 0.342; p < 0.001). this indicates that the leadership style adopted within the banking industry significantly influences employees' decisions regarding whether to stay or leave their current employment. specifically, leadership characterized by democratic decision-making and participatory approaches tends to reduce turnover intention, aligning with the findings of puni et al. (2016). conversely, autocratic leadership styles emphasizing productivity over employees’ well-being are associated with higher turnover intentions, consistent with the results of haque et al. (2019). these findings underscore the importance of effective/favourable leadership in mitigating employees’ voluntary turnover intentions in the nigerian banking industry. impact of favourable working conditions on employees’ voluntary turnover intention the results of the regression analysis demonstrate a significant impact of favourable working conditions on employees’ voluntary turnover intention (r2 = 0.289; p < 0.001). it suggests that the quality of the work environment significantly influences employees' decisions to remain in or leave their current positions within the banking industry. favourable working conditions, such as supportive management, conducive physical environments, and manageable stress levels, are associated with lower employees’ voluntary turnover intentions, in line with the findings of kurniawaty et al. (2019). conversely, adverse working conditions characterized by high levels of stress and inadequate support are associated with increased turnover intentions, aligning with the results of abdou et al. (2022). these findings emphasize the importance of creating a positive work environment to reduce turnover intentions among bank employees. impact of favourable rewards and recognitions on employees’ voluntary turnover intention the regression analysis results indicate a significant impact of favourable rewards and recognitions on employee voluntary turnover intention (r2 = 0.321; p < 0.001). it suggests that the compensation and reward structures within the banking industry play a crucial role in influencing employees' decisions to stay or leave their current jobs. adequate remuneration, performance-based incentives, and opportunities for career advancement are associated with lower voluntary turnover intentions, consistent with the findings of cao et al. (2013) and mendis (2017). conversely, unfavourable compensation and limited recognition for achievements/contributions are linked to higher voluntary turnover intentions, in line with previous research. these findings highlight the importance of implementing competitive compensation and reward systems to retain talented employees within the banking industry. impact of favourable career advancement opportunities on employees’ voluntary turnover intention the results of the regression analysis reveal a significant impact of favourable career advancement opportunities on employees’ voluntary turnover intention (r2 = 0.276; p < 0.001). it suggests that the availability of career growth prospects and development opportunities within the banking industry influences employees' decisions regarding job retention. ample opportunities for professional american journal of business management, economics and banking volume 21 february, 2024 p a g e | 149 www.americanjournal.org growth, training, and skill development are associated with lower turnover intentions, aligning with the findings of rasheed et al. (2020) and mahadi et al. (2020). conversely, limited prospects for advancement and professional development are linked to higher turnover intentions, consistent with previous research. these findings emphasize the importance of providing clear career pathways and development initiatives to enhance employees’ retention within the banking sector. summary and recommendations this study investigated the factors influencing employees’ voluntary turnover intention within the nigerian banking industry, focusing on leadership, working conditions, rewards and recognitions, and career advancement opportunities. through regression analysis, the study found significant effects of these factors on employees’ voluntary turnover intention. effective/ favourable leadership characterized by democratic decision-making and participatory approaches, favourable working conditions, competitive rewards and recognitions, and ample career advancement opportunities were associated with lower voluntary turnover intentions nigerian banking industry. conversely, autocratic leadership, adverse working conditions, unfavourable compensation, and limited career growth prospects were linked to higher voluntary turnover intentions in the nigerian banking industry. these findings underscore the importance of creating a positive work environment, implementing competitive rewards and recognitions systems, and providing clear career pathways to mitigate turnover intentions among bank employees. based on the findings, several recommendations can be made to reduce turnover intentions and enhance employees’ retention within the nigerian banking industry: 1. enhance leadership practices: banking institutions should focus on fostering effective leadership practices characterized by democratic decision-making, employees’ empowerment, and supportive management styles. 2. improve working conditions: efforts should be made to improve working conditions by providing a conducive physical environment, managing stress levels, and offering adequate support and resources to employees. 3. review rewards and recognitions for achievements: banking organizations should review their rewards and recognitions structures to ensure they are competitive and aligned with employees’ expectations and industry standards. 4. promote career advancement opportunities: institutions should prioritize the development of clear career advancement pathways, offering training, skill development programs, and opportunities for professional growth to employees. 5. conduct regular employees’ engagement surveys: regular employees’ engagement surveys can help organizations assess employees’ satisfaction levels, identify areas for improvement, and tailor retention strategies accordingly. 6. implement talent management programs: implementing talent management programs can help identify high-potential employees and provide them with opportunities for advancement and career development within the organization. american journal of business management, economics and banking volume 21 february, 2024 p a g e | 150 www.americanjournal.org references 1. abdou, a. h., khalil, a. a. f., mahmoud, h. m. e., elsaied, m. a., & elsaed, a. a. 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(2020). the determinants of turnover intention among bank employees. journal of business and economic analysis, 3(01), 42-54. 85. zafirovski, m. (2005). social exchange theory under scrutiny: a positive critique of its economic-behaviorist formulations. electronic journal of sociology, 2(2), 1-40. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 44 www.americanjournal.org dividends payout, market capitalization and market value of manufacturing firms in nigeria henry wobo, asian asian umobong department of accounting university of port harcourt, choba port harcourt, nigeria corresponding author email: aumobong2007@yahoo.com a b s t r a c t k e y w o r d s the aim of the study was to determine the nature of relationship between dividend payout, market capitalization, inflation and market value of manufacturing firms in nigeria using secondary data obtained from firms listed on nigeria stock exchange between 2013 and 2021. multiple regression analysis to ascertain nature of relationship was used and hausmann test for selection of model. also, various diagnostic tests were conducted on data set. the study found a positive significant relationship of dividend and inflation on market value measured by tobin q and price earnings ratio. based on findings we conclude dividend and inflation impact firm value positively. we noted market capitalization positively and insignificantly affect tobin q and positively and significantly affect price earnings ratio. we conclude market capitalization has a positive effect on market value. we noted negative significant relationship of dividend and inflation on enterprise value and a negative insignificant relationship of market capitalization on enterprise value. we conclude a trade-off exist between the variables. increases in variables increase market value while at the same time dampening enterprise value. based on findings, we conclude that our study negates dividend irrelevance theory and aligns with signaling theory and bird in hand theory which suggests that dividends impact firm value. we recommend that to maximize firm value corporate managers should design an efficient and effective dividend policy depending on the firms financing and investment need taking into consideration the interest of shareholders. dividend payout, market capitalization, inflation, firm value, tobin q, enterprise value, price earnings ratio. introduction business owners set up businesses with the motive of profit and maximization of wealth. since the advent of firms where ownership is divorced from management corporate managers are constantly faced with three decision making dilemma which involves the right choice of investment portfolio, funding and compensation of shareholders in form of dividend payment. dividend policy determines american journal of business management, economics and banking volume 35 april 2025 p a g e | 45 www.americanjournal.org the amount of dividend paid to shareholders. a firm at the declaration of profit must decide the portion which is retained in the business and what must be shared to shareholders. this policy decision is driven by funding needs of the entity as well as the tax bracket of shareholders. the clientele effect theory by petit (1972) captures this accurately and states that preferences for dividends vary from one group of clients or shareholders to another, depending on their other sources of income levels it is sometimes argued that shareholders belonging to high tax bracket will prefer retained earnings to dividend payments and vice versa. dividend involves distribution of profits by a business entity to owners of the business. when a firm makes profit or earn surplus income, it is able to pay a proportion of the profit as a dividend to shareholder the remainder of profit after dividend is retained and used for reinvestment into the business for future expansion and fulfillment of the funding needs of the entity. a high dividend payout implies less reinvestment of funds into the business while low dividends imply high reinvestment of funds back to the business. there is the argument that high dividend pay out to shareholders serve as an attraction to investors on the assumption that there is an assurance of steady streams of income from investment with high possibility of increase in share price (khan et al.2019). conversely low dividend payout signals re-investment in the business for growth, future gains, expansion and delayed gratification to shareholders. the dilemma faced by corporate managers have ignited a hot debateon the subject of firm value, funding and dividend payment. many theoretical and conflicting postulations have been made by scholars in the corporate finance literature in an attempt to assist corporate managers handle the problem. modigliani and miller (1958) had earlier argued that the funding arrangement of an entity does not affect its value but rather the asset does and from there suggested the irrelevance of the funding mix of an entity. this propositions further expanded by the same authors miller and modigliani (1961) enthused that based on perfect market conditions dividend policy has no effect on share prices and cost of capital and investors attach no importance to dividend history of the entity thus dividend is irrelevant in share valuation.. contrasting with the position of miller and modigliani (1961) is the bird in hand theory pioneered by gordon(1962) ) which states that dividend are relevant to the value of the firm. this position is further supported by litzenberger and ramaswamy (1982) that dividend policy is relevant and influences investors’ behaviour. the position is justified through the argument that disparity exist between taxation on dividends and capital gains. investors are expected to show preference to low dividend business driven by the motive to minimize tax. further supporting the relevance of dividend is signaling theory by fama et al. (1969) and spence (1973).agency cost theory presents the implication that company’s implementing high dividend outlay ratio has greater firm value as the agency costs are reduced (gitman, 2010). there are arguments that firms could finance their operations through retain earnings by adopting low dividend payout policy and using the retained funds to finance its activities which yields profit and ultimately enhances firm value. baker and powell (1999) argues that dividend policy decisions is one of the most important corporate finance decision to be taken by corporate managers. in concurrence to the relevance of dividend omran & pointon (2004) explained that dividend has the potential to impact share prices, returns to investors, internal financing and equity base since retain earnings can be converted to shares through capital reserves. the conflicts in the finance literature with regards to the relevance or not of dividend is not limited to theoretical propositions as many studies produce mixed results. while modigliani and miller (1961) proposed irrelevance of dividend in determining firm value and is supported by other studies by de angelo et al. (1996),lang & litzenberger (1989). chen et al (2002), uddin, (2005 and irum et al., https://www.mdpi.com/1911-8074/14/8/353#b17-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b17-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b23-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b23-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b23-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b23-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b23-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b19-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b19-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b28-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b28-jrfm-14-00353 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref17 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref17 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref25 american journal of business management, economics and banking volume 35 april 2025 p a g e | 46 www.americanjournal.org (2012) concluded that dividend payout has no significant impact on firm share price.there are other scholars who hold that dividends are relevant to firm value. they include watts (1973),lintner (1956), miller (1987), aharony & swary (1980),asquith & mullins (1983),pettit (1972),benartzi, michealy, & thaler (1997). majanga (2015) and sharif et al., (2011) in the study showed dividend payout positively impacts share price. the conflicts in theoretical propositions and mixed results from prior studies create gaps for further studies on the subject. prior studies in nigeria failed to consider the peculiar nigerian situation with galloping inflation which could impact firm value. this study fills that gap and consider dividend payout, macroeconomic factor and its impact on firm value. therefore, the aim of the study is to ascertain the effect of dividend and inflation on firm value literature review theoretical framework many theoretical propositions have been made in finance literature to explain the concept of firm and what determines its value. modigliani and miller (1958) through the irrelevance of capital structure proposed that the funding arrangement of a firm does not impact the value of the firm. this implies that equity finance and borrowing have no influence on the value of a firm. this line of argument was extended by the authors (modigliani and miller (1961) that dividend payout policy does not affect firm value. the pecking order theory by donaldson (1961) and modified by myers and majluf (1984)specifies that managers follow a hierarchy in financing and funding decisions as internal finance is cheaper and convenient. . the theory is rooted on information asymmetry as cause of imbalance in transaction power. firm managers have privileged and superior information on performance, risks, prospects and future potentials better than external stakeholders such as investors and creditors. therefore, to compensate for information asymmetry, external information users require higher returns to mitigate the risk taken. according to myers & majluf (1984) the market will attach no significance to the issue of new equity. in the presence of asymmetric information, the firm may sometimes pass up a positive npv project as the market does not value the project as the owners do and is unwilling to make capital available at its true risk-adjusted cost to the firm. this restriction is therefore circumvented by the owners by taking recourse to internal financing. this shows that existing shareholders will prefer to use available liquid assets to finance positive npv projects rather than going in for equity through new shares offering. further, in a situation where external financing is essential, debt is perceived by the firm to be safer than equity, since its market value does not change much over time. titman & wessels (1985) study shows that more profitable firms will tend to use less external financing and provides support for the pecking order theory. event studies show that issue of equity is interpreted as bad news by the market, with significantly negative announcement date effects on equity prices. thus, pecking order theory confirms that dividend policy affects value of the firm as investors prefer internal financing rather than equity. low payout is synonymous with high retention of funds instead of equity financing. behavioral theory explained that investors are attracted to dividend because of different behavioral factors such as age, retirement status, income and these demographic factors may determine investors’ preferences. in furtherance of this behavioral theory, shefrin (2010) asserted that low level income households, older and retired persons prefer firms with high dividend payout while young investors with moderate tohigh income bracket do not show much preference to high dividend paying firms.the agency cost theory suggests that, dividend policy is determined by agency costs arising from the divergence of ownership and control. managers may not always adopt a https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref44 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref26 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref3 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref7 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref36 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref10 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref10 https://www.mdpi.com/1911-8074/14/8/353#b8-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b8-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b25-jrfm-14-00353 https://www.mdpi.com/1911-8074/14/8/353#b25-jrfm-14-00353 american journal of business management, economics and banking volume 35 april 2025 p a g e | 47 www.americanjournal.org dividend policy that is value -maximizing for shareholders but would choose a dividend policy that maximizes their own private benefits. making dividend payouts which reduces the free cash flows available to the managers would thus ensure that managers maximize shareholders’ wealth rather than using the funds for their private benefits (deangelo et al., 2006). furthermore, agency theory shows a negative relation exist between investment and dividend policy of the firm implying increase dividend payout reduces firm over-investment problem and result in increase in firm value. abor (2006) opined that firms pay dividends to mitigate agency cost and by implication when institutional holding is higher, dividend payout ratio will be lower. the signaling theory proposes that dividend policy can be used as a device to communicate information about a firm’s future prospects to investors. cash dividend announcements convey valuable information, which shareholders do not have, about management's assessment of a firm's future profitability thus reducing information asymmetry. investors may therefore use this information in assessing a firm’s share price. lintner (1956) indicates that companies have propensity of increasing the dividends when their managers were of the belief that increasing earning is permanent thereby sending signals that higher dividend payout is an indication of sustainability of earning in the long run from shares. dividend policy under signaling model is therefore relevant (al-kuwari, 2009).bird in hand theory proposes that a relationship exists between firm value and dividend payout. it states that dividends are less risky than capital gains since they are more certain. investors would therefore prefer dividends to capital gains. conceptual framework firm value there are many strategies to value a company depending on the intent and purpose of valuation. a firm can be valued for liquidation, for amalgamation or to write-off excess liability in case of diminution in capital and when assets do not fairly represent capital. a firm can also be valued for investment purpose in which case the future potential of the entity will determine the method being used. assets alone do not constitute the yardstick for determination of the value of a firm as intangible assets such as goodwill, patents, franchises, proximity to sources of raw material, intellectual capital is also part of the consideration. in the market, value is derived based on the price that it is being offered and the price which the investors are willing to buy an existing share at a given period of time. thus, share valuation in the market is driven by multiple factors and not limited to tangible assets. outside the stock market a company can be sold based on its liquidation value in which case the historical and the realizable value of the assets of the firm is the major consideration. for investors assessing the future potentials of a firm, dividend valuation model can be utilized which considers the present value of future streams of income based on the cost of capital. accurate determination of firm value under this scenario is a function of accuracy in determining future cash flows. the dividend model and contribution to firm value is a subject of debate. first, un-distributable profit is retained and use for internal financing for growth and stability of the firm. second, a firm will still have value whether dividend is paid or not in the circumstance that retained earnings are ploughed back into the business to enhance asset base and cash flows to generate future earnings. thirdly, reinvested earnings enhance capital appreciation and some investors prefer capital gains to dividends. shefrin (1984) further conclude that shareholders prefer series of small gains rather than one-time big gain such as capital gain. therefore, investors are willing to pay higher price for firm with dividend payment. black (1990) also indicate that shareholders american journal of business management, economics and banking volume 35 april 2025 p a g e | 48 www.americanjournal.org more prefer dividend payout because it prevent them from consuming their own capital dividend paid is valuable to shareholders as it enhances cash flow. while it is a widely held belief that dividend payments carry information which influences decision by investors and drives value in the market, this position is not always justified as questionable financial performance can dampen investors interest market capitalization market capitalization, which may also be referred to as market cap, represents how much a firm is worth in the publicly traded markets. it illustrates the value at which investors are placing on a firm at a given time. market cap can be calculated by multiplying a stock's market value by the number of shares that a firm has outstanding, the latter of which are common stock shares that have been issued for trading in the public markets. dividend dividend is the share of profit that is paid to shareholders. it is also the proportion of profits that are distributed to the shareholders in an amount that is proportional to the number of shares that is owned. a dividend paying firm is adjudged profitable as payment of dividends are expected to be made through gains derived from business activities. it is sometimes argued that dividend payment is a signal that firms are doing well and that there are a lot of factors that impact dividend payments. these factors are the funding and financing need of the entity, the tax bracket of the shareholders and the intent of managers depending on the type of signals they want to send to the market. the firm's value can be seen on the firm's ability to pay dividends). there are circumstances when dividend is not distributed by the firm because the firm’s desire is to plough back the profits earned into the business. the amount of the dividend may affect the stock price. dividend payment is assumed to affect share price. high dividend is expected to make share prices high and vice versa. the capacity of a firm to pay dividend is associated with its capacity to make profit. when firms make high profit it is expected to be able to pay high dividends. huge dividends in turn is expect to result in high firm value. the size of dividends paid to shareholders is a function of the dividend policy of each firm which is based on many factors. gitman (2003) suggest that firm level factors that impact dividend policy are cash position, debt covenants, growth prospects of the firm, liquidity and majority shareholders control power. dividends contain information that indicate the firm's future prospects. the greater the dividends distributed to shareholders, the firm's performance would be considered the better, and ultimately an assessment of the firm as reflected by the share price will be the better. bhattacharya (1979) argued that high dividend indicate high amount of cash flows in future and growth prospects thereby indicating higher future dividends and higher firm value. inflation inflation is a general increase in the money supply. inflation affects the whole economy of the countries. this shows that inflation was very dangerous for all countries. in short run there was inverse relationship of inflation between unemployment, increase in inflation leads to decrease in unemployment and vice versa (katria, 2010). in a forecast context, projections of overall consumer price inflation often converge to recent values of inflation measured from consumer prices apart from food and energy prices (kiley, 2008). interest rate is used to control the inflation rate because when then prices of products become high it’s discourage the customers. this situation is not good for economy. american journal of business management, economics and banking volume 35 april 2025 p a g e | 49 www.americanjournal.org figure 1: conceptualized framework of dividend payout, market capitalization and market value of manufacturing firms in nigeria empirical review the empirical evidence revealed in the literature show that firm value is dependent on endogenous as well as exogenous factors. however, attempts to situate role of dividends in firm value through scholarly studies and theoretical postulations revealed mixed result. according to miller and modigliani (1961) through dividends irrelevant theory, dividend decision does not affect the firm’s value and is therefore irrelevant under assumptions of perfect market conditions; no taxes, no transaction costs, perfect competition and costless information. other renowned finance scholars who agreed with modigliani and miller (1961) are de angelo et al. (1996), lang and litzenberger (1989). there are other scholars who hold that dividends are relevant. they include watts (1973), lintner (1956), miller (1987), aharony and swary (1980), asquith and mullins (1983),pettit (1972), benartzi, michealy, and thaler (1997). theoretical postulations under the bird in hand theory, signaling theory support findings by scholars that dividend is relevant for firm value. this conflicting theoretical propositions and mixed result from prior studies exacerbate the debate on the subject. obayagbona and akinuli (2024) assessed the impact of dividend policy on nigerian consumer goods companies, by examining the effects of dividend payout, dividend yield, and firm size on financial performance over a ten year period (2012-2021). the findings indicate that dividend payout, dividend yield, and firm size exerted a positive and significant influence on return on assets, while firm liquidity demonstrated a substantial adverse influence on the financial performance sanni (2022) investigated the effect of dividend policy on the financial performance (return on assets) of firms listed in food and beverage industry in nigeria over a period of ten years, from 2010 to 2019. panel data from audited financial statements from 14 purposely selected firms in the industry were extracted on return on assets (roa) used to proxy financial performance. data were also extracted on dividend payout ratio (dpr); dividend yield (dy); retention ratio (rr) and dividend coverage ratio (dcr) used to proxy dividend policy. an analysis of the data showed that they are stationary at level and that co-integration exists among them. hausman test confirmed that fixed effect model was most appropriate. all the four variables used to proxy dividend policy jointly significantly affect performance though their individual results are mixed. dpr exerts a positive (coefficient = 1.886) and dividend pay out market capitalization price earnings ratio enterprise value tobin q inflation https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref28 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref28 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref17 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref25 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref44 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref26 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref26 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref3 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref7 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref36 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref10 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref10 american journal of business management, economics and banking volume 35 april 2025 p a g e | 50 www.americanjournal.org significant (p = 0.008) influence on performance. dy exerts a negative (coefficient = -0.002) and insignificant (p = 0.311) influence while rr exerts a negative (coefficient = -2.002) and significant influence (p = 0.004). dcr exerts an insignificant (p = 4.31) positive influence (coefficient = 0.17 mustapha and abdulahi (2021) examined effect of dividend policy on financial performance of listed deposit money banks in nigeria for the period 2015 to 2021. the result indicates that dividend per share significantly and positively affect performance it also showed that firm size is negative and significantly related with firm financial performances. examines whether companies with increasing dividends and companies with decreasing and constant tuoye et.al (2023) examined dividend policy and performance of money deposit banks in nigeria study revealed significant and positive relationship between earnings per share and dividend per share, positive significant relationship between firm size and dividend per share and also positive significant relationship between return on asset and dividend per share. wilcox (1984) found a significant relationship of dividend with share price. (rappaport (1986; downs (1991); and sharma (2011)); gordon (1963) argues that dividend policy does affect the value of firm and market price of shares. sharma &singh (2006) examined the relationship between dividends per share. they found that dividend per share is a major determinants of share price value. rahim et al. (2010) found underinvestment occur when there was positive relationship between dividend policy and the firm value. there was a trade-off between firm value and decrease in investment as increase in firm’s value was contributed by decreased in investment, increased dividend and stagnant debt ratio. it was argued that reduced investment happens because the management cautiously chooses only secured investments and distributes the excess cash to shareholders as dividends. kamunde (2011) examined the impact of dividend payout ratio and on firm value of listed telecommunication companies in kenya, study revealed significant negative association between firm value and dividend payout. amarjit et al. (2012) studied 333 american firms listed on the new york stock exchange for the period from 2009 to 2011 and found dividend per share impact share prices. samuel et. al. (2013) examined effect of dividend policy on market value of shares in kenya and found significant positive correlation between market share value and dividend payout, dividend growth rate and dividend policy. putu et al. (2014) using path analysis found that profitability affect dividend policy and dividend policy has a positive effect on firm value. tiwari and kumar (2015) study using panel regression found that dividend per share is a driver of firm value. ayako and wamalwa(2015) analyze secondary panel data over the period 2002 to 2012 and found that dividend ratio had no statistically significant individual effects on firm value. they however, found that market capitalization had statistically significant individual effects on firm value. balagobei (2015) studied the nexus of dividend policy and shareholder’s wealth using a sample size of twelve firms. shareholder’s wealth proxy was earnings per share while dividend per share, payout ratio and returns on equity were the independent variables. study revealed payout ratio, dividend per share and returns per share significantly and positively relate with shareholders’ wealth.rauf (2015) identifies the possible factors that influence share prices for the listed banks in colombo stock exchange over the period 2005-2014. he selected dividend per share, dividend payout, price earnings ratio as potential determinants of share prices. employing the regression and correlation analyses he found positive correlation between the dependent and independent variables. anton (2016) in a study of romanian capital market for the period 2001 to 2011 on effect of dividend payout on firm value concluded that a positive correlation coefficient exist between dividend payout ratio and firm value .ramadan (2016) in a study of 77 firms listed on amman stock exchange (ase) 2000-2014 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref38 https://www.scirp.org/journal/paperinformation.aspx?paperid=101899#ref38 american journal of business management, economics and banking volume 35 april 2025 p a g e | 51 www.americanjournal.org industrial firms in the. he examines the influence of twelve firm-specific variables on the firm value and found that, dividend per share, and pay-out ratio, have a statistically significant impact on the value of the jordanian industrial firms listed at ase. rehman (2016), lubis et al. (2017) kasmiati and santosa (2019) dividend policy has a positive effect on firm value. kanwal et.al (2017) examined association of dividend payout ratio and financial performance of pakistani firms listed in karachi stock exchange for the period 2008 to 2012 and analyzing the data using correlation analysis and liner regression analysis. dividend payout ratio was the independent variable while net profit after tax, return on equity, and return on asset were proxies for performance. findings of the study revealed dividend payout positively influenced performance of the firms. sugiastuti et al. (2018) indicate that profitability and dividend policy have no significant positive effect on firm value. santosa (2020) who examined the effect of dividend policy on firm value, states that dividend policy has a positive and significant effect on firm value. mendisand and wijesinghe (2021) studied impact of dividend payout on market and financial performances of listed firms on colombo stock exchange from 2014 to 2019.dividend payout was used as independent variable, control variables as earning volatility, net working capital, capital structure while stock return and market value added (mva) were used as proxies for market performance while return on equity, return on assets and economic value added (eva) are proxies for financial performance. findings revealed that there is a significant positive influence of dividend payout on firm stock return, return on equity, return on assets and economic value added. methodology the study used the cross-sectional ex-post facto design and adopted census method of sampling to examine firms in the subsector of food and beverage, health care, cement. building material, confectionaries, pharmaceuticals are being studied. census sampling does not require any sample size determination. a total of twenty-two firms were examined in a population of sixty-five manufacturing firms with complete data. data were extracted from the financial statements of the firms studied. firms with incomplete information were eliminated to avoid pollution of data. the sample size represents ninety five percent of the firms in the food and beverage, household, building, cement, health care, confectionaries subsector in terms of number, size of assets and market capitalization. measurement of variables: independent variables divi, t = dividends payout ratio of firm i in year t as a proxy of firm dividend policy. mcp = market capitalization which is shares multiplied by the market value as quoted in the nigeria stock exchange inf = inflation: high inflation tends to make firms borrow instead of raising equity. we expect inflation and firm value are positively related. this is a macroeconomic index as published federal office of dependent variable the dependent variable for this study are: tobin q tobin q (tobq) = ratio expresses the relationship between market value of a firm and the cost of replacing the asset. american journal of business management, economics and banking volume 35 april 2025 p a g e | 52 www.americanjournal.org we adopt chung and pruitt’s approximating formulation of tobin’s q = mve + ps +debt/ta where: mve = firm’s stock price multiplied by number of outstanding equity shares. ps = value of a firm’s outstanding preferred stock on liquidation debt = sum of short-term liabilities minus short term assets plus the book value of long term-debt; ta = total book value of all assets. price to earnings ratios (perr) this ratio is a yardstick for measuring times share price cover earnings per share in a particular period thus providing an indication for payment by investors for each financial unit of measurement. the method is popular in judging or evaluating financial results. the ratio gives an indication of market perception of a firm’s share and is calculated using current price and earnings. pe ratio = market price per share earnings per share enterprise value enva= enterprise value /sales model specification tobq= 0 + 1 mcp+2div +11inf+ u1,t (i) perr =0 + 1mcp+2div+3inf+ u2,t (ii) enva = w0 + w1mcp+ w2div+ w3inf+ u3,t(iii) result descriptive statistics the result obtained from data analysed on descriptive statistics is presented on table 4.2 below: table 1. descriptive analysis mean median max min std. dev. jarque-bera prob obs enva 1.327519 1.033682 6.077683 -0.37589 0.908881 277.9778 0 103 tobin 66564.33 680.3367 2576213 0.624091 379552.2 4718.986 0 103 peratio 89.6115 7.733333 8100 -64.3125 797.2917 42825.27 0 103 mcp 3.02e+11 2.28e+10 3.73e+12 63600000 7.45e+11 673.7763 0 103 divpay 2.24602 0.352113 190 -5 18.71225 42366.79 0 103 infl 11.54359 9.01 16.5 8.06 3.752132 16.58693 0.0003 103 table 1 shows the descriptive statistics for the variables and as observed, the mean for enva is 1.3275 with maximum and minimum values of 6.0776 and -0.375. the mean value for tobin is 66564.33 which is high and indicates that the firms tend to have high market valuation with maximum and minimum values of 2576213 and 0.624091 respectively. pe-ratio has mean value of 89.6115 which is quite high with maximum and minimum values of 8100 and -64.3125 respectively.. the mean for mcap stood at 3.02e+11 with maximum and minimum values of 3.73e+12 and 63600000 american journal of business management, economics and banking volume 35 april 2025 p a g e | 53 www.americanjournal.org respectively. divpay has a positive mean value of 2.246 with maximum and minimum values of 190 and -5 respectively.. the mean for infl stood at 11.5436 with maximum and minimum values of 16.5 and 8.06 respectively. stacked cross-section trend of variables the stacked cross section average movements in the variables, reveals the presence of year on year fluctuations across the cross-sections for a number of the variables. enva shows significant heterogeneity in its behaviour across all firms but in the case of tobin q, there is evidence of concentration of high values at a period for most of the firms as shown in the peaked nature of the graph. the same behaviour is also observed for peratio as considerable concentration is observed to be peaked at a year indicating less firm to firm and year on year heterogeneity. mcap is observed to have witnessed high value in 2017, following a period of low market activity at 2014, 2015 and 2016. dividend policy is a very critical issue for most companies because of shareholder interest. divpay exhibits a rather distinct pattern across the stacked cross-sections indicating significant firm heterogeneity infl show less variability year on-year as the rate as appeared stable at double digit and finally firm size as expected depicts significant firm heterogeneity pearson correlation result the result showing correlation amongst the variables are presented on table 2 below table 2: pearson correlation table enva tobin peratio lev mcp effi atang divpay liq infl fsize enva 1 tobin 0.3242 1 prob 0.0008 peratio -0.080 -0.017 1 prob 0.4211 0.8644 mcp 0.2875 0.6465 0.04945 -0.25 1 prob 0.0032 0.000 0.6199 0.011 divpay -0.083 -0.0172 0.99899 0.15 0.0469 -0.06 -0.031 1 prob 0.4031 0.8631 0.000 0.132 0.6382 0.519 0.7568 infl 0.0094 0.0838 0.10817 -0.02 -0.015 -0.04 -0.117 0.1 0.0996 1 prob 0.9251 0.4001 0.2768 0.857 0.8771 0.728 0.2413 0.3147 0.3167 table 2. shows the pearson product moment correlation and the significant p-values for the variables. the result as presented in table 4.2 and it shows that enva is positively correlated with mcap (r=0.2875, p= 0.003), infl (r=0.0094, p= 0.9251) but negatively correlated divpay (r=-0.083, p= 0.4031). in addition, the table shows the correlations between tobin q and the other independent variables and as observed tobinq is positively correlated with mcap (r=0.6465, p= 0.000),), infl (r=0.0838, p= 0.4001) but negatively correlated with divpay (r=-0.0172, p= 0.8631) in addition, the table shows the correlations between peratio and the other independent variables and as observed american journal of business management, economics and banking volume 35 april 2025 p a g e | 54 www.americanjournal.org peratio is positively correlated with mcap (r=0.049, p= 0.6199), divpay (r=0.998, p= 0.000), infl (r=0.1082, p= 0.2768). the positive correlations indicate that a rise in one variable will result in a rise in the other and vice versa. however, corrections are not best suited for functional dependence causality and hence the study proceeds to perform the panel regression analysis. multicolinearity test the test is carried out for multicollinearity amongst the variable of study variance inflation test is conducted for this purpose and result is presented on table 4.4 below: table 3. variance inflation factors variable variance vif mcp 2.49e-27 2.189849 divpay 1.90e-06 1.0564 liq 2.19e-05 1.056286 infl 4.63e-05 1.043943 multicollinearity among the independent variables implies that they are perfectly correlated. if there exists perfect correlation between the independent variables, the parameter coefficients will be indeterminate. in the presence of multicollinearity, there will be large standard errors of the estimated coefficients. in this study, the variance inflation factor test is constructed to test for multicollinearity. the rule for the vif is that the values less than 10 indicates the absence of serious collinearity. as shown, the vif values of all the variables are all less than 10 and hence there is no threat of multicollinearity amongst the variables. dividend. market capitalization and enterprise value the econometric relationship for determinants of firm value and enterprise value is stated as follows: enva = w0 + w1mcp+ w2div+ w3inf+ u3,t the regression result for this model is stated on table 4.4 below: table 4. dividend, market capitalization and enterprise value variable aprori sign fe model re model c + 0.9820 (0.4590) [0.0358] 1.2202 (0.2746) {0.000} mcp + -6.63e+14 (4.63e-14) {0.1566} 4.16e-14 (4.74e-14) {0.3827} divpay -0.0009 (0.0002) {0.000} -0.00102 (0.0013) {0.4373} infl -0.00209 (0.0012) {0.0972} -0.00617 (0.0064) {0.3245} model parameters american journal of business management, economics and banking volume 35 april 2025 p a g e | 55 www.americanjournal.org r2 0.9834 0.9290 adjusted r2 0.9766 09214 f-statistic 144.582 121.775 prob(f-stat) 0.000 0.00 durbin-watson 1.99 0.9349 model diagnostics hausman 0.000 ramsey reset test 0.410 period hetero.test 0.112 cross-section hetero.test 0.709 pesaran cd for serial correlation 0.483 table 4 show the regression results and white adjusted standard errors was employed to control for potential heteroskedasticity in the estimation and hence the estimation results are free from heteroskedasticity while the cochrane orcutt autoregressive (ar) procedure was employed to correct for serial correlations where it is detected. the hausman test statistic with p-value = 0.00, indicates that the fe is the preferred model to the random effects indicating the presence of correlations between the errors and the explanatory variables which is the key assumption of the fixed effects (hausman, 1998). both panel period heteroskedasticity and cross-sectional heteroskedasticity test confirm that the estimations were found to be free from such. the peseran cross-dependence test was employed to confirm the threat of the serial correlation in the errors and the statistic reveals the absence of crosssection dependence in the residuals. the ramsey reset test confirms that the model is correctly specified. the r2 is 98.34% with and adjusted value of 97.66%. the f-stat of 144.582 (p-value = 0.00) and significant at 5%. the durbin watson value of 1.99 suggest that the presence of serial correlation between the errors is unlikely in the model. mcp has a negative effect (850.4034) though not significant at 5% (p=0.01566). the effect of divpay is negative (-0.0009) and statistically significant (p=0.000) at 5. the effect of infl is negative (-0.00209) and statistically significant (p=0.0972) at 10%. dividend, market capitalization and tobin q the econometric relationship for dividend, market capitalization and tobin as firm value is as stated below: tobq= 0 + 1 mcp +2div +3inf+ u1,t the regression result based on the model specified above is stated on table 5: table 5. dividend, market capitalization and tobin q variable aprori sign fe model re model c + 3979154. (177449.9) [0.000] 961664.2 (79261.09) {0.000} mcp + 3.14e-08 (3.34e-08) {0.3504} 2.18e-07 (1.37e-08) {0.000} divpay 276.5317 -416.517 american journal of business management, economics and banking volume 35 april 2025 p a g e | 56 www.americanjournal.org (78.7190) {0.000} (378.79) {0.2744} infl 6948.854 (1519.7) {0.000} 12250.1 (1866.9) {0.000} model parameters r2 0.9418 0.7785 adjusted r2 0.9179 0.753 f-statistic 39.3933 32.695 prob(f-stat) 0.000 0.000 durbin-watson 1.7 0.5529 model diagnostics hausman 0.000 ramsey reset test 0.291 period hetero.test 0.893 cross-section hetero.test 0.1194 pesaran cd for serial correlation 0.110 table 5 show the regression results for tobin q and identified corporate determinants. the hausman test statistic with p-value = 0.038, indicates that the fe is the preferred model to the random effects indicating the presence of correlations between the errors and the explanatory variables which is the key assumption of the fixed effects (hausman, 1998). the r2 is 94.18% with and adjusted value of 91.79%. the f-stat of 39.393 (p-value = 0.00) and significant at 5%. the durbin watson value of 1.7 suggest that the presence of serial correlation between the errors is unlikely in the model. mcp has a negative beta (3.14e-08) though not significant at 5% (p=0.3584). the effect of divpay is positive (276.5317) and statistically significant (p=0.000) at 5%. infl has a positive beta (6948.9) and statistically significant (p=0.000) at 5%.. both panel period heteroskedasticity and cross-sectional heteroskedasticity test confirm that the estimations were found to be free from such. the peseran crossdependence test was employed to confirm the threat of the serial correlation in the errors and the statistic reveals the absence of cross-section dependence in the residuals. the ramsey reset test confirms that the model is correctly specified. dividend, market capitalization and price earnings ratio the econometric model for dividend, market capitalization and price earnings ratio is stated below: perr = 0 + 1mcp +6div+3inf+ u2,t based on this relation, regression result to ascertain the nature of relationship between the variables of study is presented on table 6 below american journal of business management, economics and banking volume 35 april 2025 p a g e | 57 www.americanjournal.org table 6. perr and value determinants variable aprori sign fe model re model c + -52.2849 (8.5441) [0.000] 74.9118 (45.324) {0.1018} mcp + 1.27e-11 (4.28e-08) {0.0040} 4.05e-12 (7.77e-12) {0.6040} divpay 42.639 (0.0229) {0.000} 42.4822 (0.2076) {0.000} infl 0.7194 (0.2315) {0.0027} 1.8438 (1.01629) {0.0729} model parameters r2 0.999 0.998 adjusted r2 0.999 0.997 f-statistic 1005.57 4816.000 prob(f-stat) 0.000 0.000 durbin-watson 2.2 2.5 model diagnostics hausman 0.000 ramsey reset test 0.531 period hetero.test 0.387 cross-section hetero.test 0.681 pesaran cd for serial correlation 0.295 table 6 show the regression results for price earnings ratio and identified value determinants. the hausman test statistic with p-value = 0.000, indicates that the fe is the preferred model to the random effects indicating the presence of correlations between the errors and the explanatory variables which is the key assumption of the fixed effects (hausman, 1998). the r2 is 99% which indicates a very good fit validating the choice of variables selected as determinants of peratio. the f-stat of 1005.57 (pvalue = 0.00) and significant at 5%. the durbin watson value of 2.2 suggest that the presence of serial correlation between the errors is unlikely in the model. the analysis of coefficients reveals that mcp has a negative beta (1.27e-011) and significant at 5% (p=0.004the effect of divpay is positive (42.639) and statistically significant (p=0.000) at 5%. liq has a positive beta (0.0666) though not statistically significant (p=0.7958) at 5%. infl has a positive beta (0.7194) and statistically significant (p=0.00) at 5%. heteroskedasticity and cross-sectional heteroskedasticity test confirm that the estimations were found to be free from such. the peseran cross-dependence test was employed to confirm the threat of the serial correlation in the errors and the statistic reveals the absence of crosssection dependence in the residuals. the ramsey reset test confirms that the model is correctly specified. american journal of business management, economics and banking volume 35 april 2025 p a g e | 58 www.americanjournal.org summary of regression result the summary or regression results from table 4, 5 and 6 is presented on 7 for ease of comprehension and application. table 7: result summary variable envr model tobin q model peratio model c 0.9820* (0.4590) [0.0358] 3979154* (177449.9) [0.000] -52.2849* (8.5441) [0.000] mcp -6.63e+14 (4.63e-14) {0.1566} 3.14e-08 (3.34e-08) {0.3504} 1.27e-11* (4.28e-08) {0.0040} divpay -0.0009* (0.0002) {0.000} 276.5317 (78.7190) {0.000} 42.639* (0.0229) {0.000} infl -0.00209** (0.0012) {0.0972} 6948.854* (1519.7) {0.000} 0.7194* (0.2315) {0.0027} the summary of the results reveals that looking at the proxies for market value; envr, tobin q and peratio, the estimation shows that mcp is a significant predictor of peratio at 5%, divpay shows up as a significant predictor of both peratio and tobinq at both 5% significant level.. infl is observed to be a significant determinant of tobin q and peratio all at 5% significant level and peratio at 10% level. test of hypotheses ho1: there is no significant relationship between market capitalization and tobin q. based on table 5 with positive co-efficient of 3.14e-08 and p-value of 0.3504> 0.05 indicating a positive insignificant relationship of market capitalization with tobin q. based on result we accept the hypothesis that there is no significant relationship between mcp and tobin q ho2: there is no significant relationship between dividend and tobin q. based on table 5 with positive co-efficient of 276.5317 and p-value of 0.0000< 0.05 indicating a positive significant relationship of profitability with tobin q. based on result we reject the hypothesis that there is no significant relationship between profitability and tobin q ho3: there is no significant relationship between market capitalization and price earnings ratio based on table 6 with positive co-efficient of 1.27e-11 and p-value of 0.0040<0.05 0.05 indicating a positive significant relationship of market capitalization with price earnings ratio. based on result we reject the hypothesis that there is no significant relationship between mcp and price earnings ratio. american journal of business management, economics and banking volume 35 april 2025 p a g e | 59 www.americanjournal.org ho4: there is no significant relationship between dividend and price earnings ratio. based on table 6 with positive co-efficient of 42.639 and p-value of 0.0000< 0.05 indicating a positive significant relationship of dividend with price earnings ratio. based on result we reject the hypothesis that there is no significant relationship between dividend and price earnings ratio. ho5: there is no significant relationship between market capitalization and enterprise value. based on table 7 with negative co-efficient of -6.63e+14 and p-value of 0.1566>0.05 indicating a negative insignificant relationship of market capitalization with enterprise value. based on result we accept the hypothesis that there is no significant relationship between market capitalization and enterprise ho6: there is no significant relationship between dividend and enterprise value. based on table 7 with negative co-efficient of -0.0009 and p-value of 0.0000< 0.05 indicating a negative significant relationship of dividend with enterprise value. based on result we reject the hypothesis that there is no significant relationship between dividend and enterprise value discussion of findings the objective of the study was to ascertain the nature of relationship between, market capitalization, and dividend and market value measured by tobin q, price earnings ratio and enterprise value multiple. the study found a positive significant relationship of dividend with tobin q implying that increases in firm dividend increases tobin q. michaely and roberts (2007) dividend positively impact firm value. sharma and singh (2006) found that dividend payout is a determinant of firm value. samuel et. al. (2013) found significant positive correlation between market share value and each of dividend payout, dividend growth rate and dividend policy. sorin (2016) employing a fixed effects model found that dividend pay-out ratio positively influences firm value after controlling for other firm-specific variables. tiwari and kumar (2015) dividend per share is a driver of firm value. the result of our study conforms to findings by shin-ping and hui-ju (2011), sharma and singh (2006), samuel et.al, (2013) ganton (2016); tiwari and kumar, (2015) and gordon (1963) which argues that dividend policy does affect the value of firm and market price of shares while contrasting with the study of ayako and wamalwa (2015,) which reported that dividend ratio had no statistically significant individual effects on the firm. . dividend and market capitalization also have a significant positive association with price earnings ratio. the indication of this finding is that the higher the dividend and market capitalization the higher the speed which it is converted by the market to share price. this conforms to signaling theory which emphasizes that dividend could be used as a signal to the market and conveys an information about the future prospects of the firm to the would-be investors. our study contrast with that of gharaibeh and qader (2017) which found insignificant negative relationship of dividend with firm value. our study also confirms that dividend has significant negative association with enterprise value. while market capitalization insignificantly and negatively affects enterprise value. this indicates a trade-off between impact of dividend and market capitalization on market value measured by price earnings ratio and tobin q and enterprise value. increase in dividend increases tobin q and price earnings ratio and a reduction in enterprise value. our study confirms that the speed with which firms convert earnings to market valuation is affected by market price is significant but insignificantly affect enterprise value and tobin q thus confirming that market capitalization has a weak association american journal of business management, economics and banking volume 35 april 2025 p a g e | 60 www.americanjournal.org with firm value. the study confirms that changes in prices affect market value measured by tobin q and the speed which earnings are converted to market price based on price earnings ratio. the reason is not farfetched as macro-economic conditions play a role in market reactions. increases in price within country impact on pricing of shares and securities resulting in cost push inflation. at this juncture we must discuss the negative effect and the direction of movement of the variables of study concerning the relationship between market capitalization, dividend and inflation on enva, tobin q and inflation. while dividend, market capitalization and inflation impact price earnings ratio and tobin q positively the reverse impact is noticed on enterprise value. this suggests that increases in inflation, dividend and market capitalization reduces enterprise value. a trade-off effect which requires deeper analysis and further studies. conclusion the objective of the study was to determine the nature of relationship between market capitalization, dividend and firm values proxied by tobin q, price earnings ratio and enterprise value. the study found a positive relationship of market capitalization and dividend on tobin q and price earnings ratio. dividends significantly impact tobin q and price earnings ratio. we conclude that dividend is a determinant of firm value and also plays a role in the speed which earnings are converted to share price for capital gains. we also conclude that market capitalization has a weak positive relationship with market value. inflation is noted to have a positive relationship with tobin q and price earnings ratio. based on findings we conclude inflation impact firm value. recommendations based on findings of the study we recommend that depending on the corporate goal of the firm managers should pay special attention to and dividend policy with the objective of maximising value to stakeholders. implications for theory and practise the implication of our study to practise is that, market capitalization and dividend play a significant role in determining firm value. inflation as a macroeconomic factor affects firm value. therefore, policy makers should be conscious of the impact of inflation on firm value as well as that of dividend policy as both affects firm value. theoretically our study supports the signalling theory and bird in hand theory which specifies that dividends have impact on firm value and negates modigliani and miller’s irrelevance theory of dividends. references 1. abbot. 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www.americanjournal.org a comprehensive analysis of global foreign direct investment trends: insights into sectoral patterns and regional distribution murtozaev s. a. the university of world economy and diplomacy uzbekistan, tashkent a b s t r a c t k e y w o r d s this article provides a concise analysis of global foreign direct investment trends from 1990 to 2021. drawing from authoritative reports, the study highlights the general changes in fdi flows over the period and examines their distribution by region and industry. the findings offer valuable insights into investment behavior, aiding policymakers and businesses in enhancing global investment strategies for sustainable economic growth. foreign direct investment, global fdi flows, trends, developed countries, developing countries, m&a, greenfield investment, regions, industries, covid19, investment policy. introduction the period between 1990 and 2000 witnessed a remarkable surge in foreign direct investment (fdi) flows, with an average global growth rate of 15,3 percent. this growth can primarily be attributed to the establishment of the international division of labor within the global economy and the heightened interdependence resulting from the emergence of the global value chain. picture 1. global fdi flows between 1990 and 2021 (in billion us dollars). american journal of business management, economics and banking volume 29 october 2024 p a g e | 26 www.americanjournal.org after reaching an unprecedented peak of nearly us$1,36 trillion in 2000, global fdi inflows experienced a significant downturn in the following years. this decline can be attributed to several factors, including a decrease in both the volume and number of cross-border mergers and acquisitions (m&a), sluggish global economic growth, and a delayed recovery from the 2000-2001 economic crisis, which adversely affected major advanced economies. moreover, there was a decline in corporate profitability, a decrease in stock market value, and the suspension of privatization processes in certain countries. collectively, these factors contributed to the sharp drop in the volume of global fdi inflow during that period. however, starting from 2003, a resurgence in fdi inflows was observed, with a consistent upward trend. this upward trajectory culminated in 2007, reaching its highest level just before the global financial crisis unfolded. during this period, developing countries, most notably china, played a pivotal role in driving this growth. the increased internationalization of activities by national enterprises in these countries can be identified as a key factor behind their entry into global markets and the subsequent surge in fdi inflows. following the global financial crisis of 2008-2009 and the subsequent “euro crisis” in 2010, developed countries witnessed a greater decline in fdi inflows compared to the previous two decades. in contrast, developing countries continued to experience growth in fdi inflows. consequently, the disparity between fdi inflows to developed and developing countries diminished, and by 2014, this gap had almost vanished. remarkably, in 2020 and 2021, developing countries attracted even more fdi than their developed counterparts. picture 2. global fdi inflows by developed and developing countries (1990-2021, in billion us dollars). the depicted graph clearly demonstrates the significant contribution of developing countries to the growth of global fdi inflows over the past 30 years. these countries have shown a consistent and robust growth trend, playing a vital role in shaping the global fdi landscape. it is important to highlight that the “china factor” has been a key driver behind the steady growth of fdi inflows in developing nations. however, despite this sustained growth, it is evident that changes in fdi inflows into american journal of business management, economics and banking volume 29 october 2024 p a g e | 27 www.americanjournal.org developed countries have predominantly influenced the overall trend of global fdi inflows. in essence, fluctuations in the volume of fdi inflows into developed countries have been the primary determinant of the observed patterns in global fdi inflows. recent years have witnessed a substantial negative impact on global fdi inflows due to the coronavirus pandemic and the ensuing global economic crisis. in 2020, there was a significant decline of 35% in global fdi inflows compared to 2019, plummeting from 1,5 trillion us dollars to 1 trillion us dollars. this represents the lowest figure since 2005 and is nearly 20% lower than even the depths of the global financial crisis in 2009. the imposition of quarantine restrictions worldwide as a response to the pandemic has led to a slowdown in the implementation of existing investment projects. moreover, the anticipated global economic crisis has compelled transnational corporations (tncs) to reassess their new ventures. contrary to the negative trends observed in 2020, the year 2021 experienced a remarkable resurgence in global fdi inflows, surpassing pre-pandemic levels and achieving a full recovery. as reported by the un conference on trade and development (unctad) investment trends monitoring, fdi inflows witnessed a substantial increase of 77%, reaching a total of $1,65 trillion in 2021 [3]. in 2020, the volume of fdi inflows witnessed a significant decline in developed countries, experiencing a 58% decrease primarily attributed to a sharp decline in corporate transactions and internal corporate transfers. conversely, developing countries experienced a relatively milder decline of 8% on average. it is noteworthy that in 2020, developing countries contributed two-thirds of the global fdi inflow, amounting to 670 billion us dollars, accounting for 67% of the total. this substantial contribution was a direct consequence of the substantial decrease in foreign investment flows observed in developed countries. in comparison, this contribution stood at 50% in 2019. as of the conclusion of 2021, developed countries witnessed the most substantial increase thus far, displaying a remarkable growth rate of 199% compared to the preceding year. fdi inflows in 2021 reached an estimated $777 billion, surpassing the exceedingly low levels observed in 2020 by more than double. despite the fact that developed countries accounted for over $500 billion or nearly threequarters of the overall increase in global fdi flows in 2021, totaling $718 billion, even in 2021, developing countries remained significant contributors, responsible for more than 50% of global fdi flows, specifically 53% [4]. picture 3. global fdi inflows by developed and developing countries (1990-2021, in billion us dollars). american journal of business management, economics and banking volume 29 october 2024 p a g e | 28 www.americanjournal.org the geographical analysis of fdi inflows, categorized according to the economic development levels of countries, enables us to discern the regions and specific countries that have attracted fdi over the past three decades. table 1 the global fdi inflows from 1990 to 2021, categorized by the level of economic development and region (in billion us dollars) years 1990 1995 2000 2005 2010 2015 2020 2021 developed countries 171,3 228,4 1134,0 630,5 761,3 1322,7 319,2 745,7 america 56,0 68,0 380,9 130,5 226,7 511,3 174,1 427,1 asia and oceania 12,6 18,6 42,3 -5,9 52,0 47,7 64,3 99,7 europe 102,7 141,7 710,8 505,8 482,7 763,7 80,8 219,0 developing countries 33,6 116,7 222,7 322,8 629,6 740,9 643,9 836,6 africa 2,8 5,7 10,4 29,3 47,2 57,9 39,0 83,0 america 8,5 29,8 79,8 77,2 160,8 152,8 86,2 134,5 asia and oceania 22,2 81,2 132,5 216,3 421,6 530,2 518,8 619,1 in the provided table, it is evident that in 1990, developed countries attracted a significant fdi inflow amounting to 171,3 billion us dollars, whereas developing countries received a comparatively lower fdi inflow of 33,6 billion us dollars. during that year, developed countries accounted for approximately 83,6 percent of the total world fdi inflows, while developing countries represented 16,4 percent. fast-forwarding to 2021, there has been a notable shift in fdi flows. developed countries, while still a substantial recipient, received a total of 745,7 billion us dollars, accounting for approximately 47,1 percent of the global fdi inflows. in contrast, developing countries witnessed a remarkable increase, attracting a total fdi inflow of 836,6 billion us dollars, constituting about 52,9 percent of the total global fdi inflows. this indicates a significant rise in the contribution of developing countries to the overall fdi landscape over the years. over three decades, fdi flows in developed countries saw remarkable shifts. asia and oceania, and the americas witnessed impressive growth, expanding 7,9 and 7,6 times, respectively. europe also experienced substantial growth, increasing 2,1 times. in 1990, europe led in fdi inflows among developed regions, but in the past 30 years, leadership shifted to the american region. in the context of developing countries, the most substantial fdi growth occurred in the regions of africa and asia and oceania. over the period from 1990 to 2021, fdi inflows in these regions surged by 29,6 and 27,9 times, respectively. the remarkable change in africa’s fdi can be attributed to its small initial inflow in 1990, amounting to only 2,8 billion us dollars. in the same period, asia and oceania maintained and strengthened their leadership among developing regions, while the american region saw a noticeable decline in its share of fdi. in the analysis above, we focused solely on fdi inflows into various regions and countries. now, we will delve into the trends of regions and countries that have not only received fdi but have also been significant sources of fdi over the last three decades. this analysis will help us identify which regions or countries have been crucial in providing fdi to the global economy and which ones have been progressively enhancing their appeal for fdi inflows during this period. the table below depicts the significant trend changes in fdi source regions during the period 1990 to 2021. american journal of business management, economics and banking volume 29 october 2024 p a g e | 29 www.americanjournal.org table 2 the global fdi outflows from 1990 to 2021, categorized region (in billion us dollars) years 1990 1995 2000 2005 2010 2015 2020 2021 world 243,9 361,2 1162,5 837,2 1392,1 1722,8 780,5 1707,6 africa 0,7 3,0 1,5 2,1 10,4 9,5 -0,6 2,7 america 37,6 107,3 195,5 61,7 367,4 348,3 276,8 534,7 europe 141,0 178,0 848,0 671,1 629,6 846,0 -20,6 551,6 asia and oceania 64,7 72,9 117,4 102,2 384,8 519,0 524,9 618,6 in the initial year of our review, 1990, the european region accounted for the primary fdi outflow, amounting to 141 billion us dollars, encompassing nearly 58% of the global fdi outflow. following closely were the asia and oceania region with 26,5% and the american region with 15,4%. by 2021, the total volume of global fdi outflow surged to 1,707,6 billion us dollars, with the asia and oceania region emerging as the major contributor, contributing 618,6 billion us dollars or 36,2%. the european and american regions secured the subsequent positions with 551,6 billion us dollars (32,3%) and 534,7 billion us dollars (31,3%), respectively. notably, the pivotal factor propelling the asia and oceania region to its leading position was the “china factor”. in 1990, the people’s republic of china accounted for approximately 5,8% of the fdi from asia and oceania (10,5 % including the hong kong administrative region). however, by 2021, the share of the people’s republic of china had significantly risen to 29,3% (52% including the hong kong administrative region). this substantial growth in china’s contribution played a critical role in elevating the region’s prominence in the global fdi landscape [5]. the table below depicts the significant trend changes in fdi destination regions during the period 1990 to 2021. table 3 the global fdi inflows from 1990 to 2021, categorized region (in billion us dollars) years 1990 1995 2000 2005 2010 2015 2020 2021 world 204,9 345,1 1356,7 953,2 1390,9 2063,6 963,1 1582,3 africa 64,5 97,9 460,7 207,7 387,4 664,2 260,3 561,5 america 102,7 141,7 710,8 505,8 482,7 763,7 80,8 219,0 europe 34,8 99,9 174,8 210,5 473,6 577,8 583,1 718,8 asia and oceania 2,8 5,7 10,4 29,3 47,2 57,9 39,0 83,0 in 1990, europe stood as the primary recipient of fdi, attracting 102,7 billion us dollars, accounting for 50,1 percent of the total fdi inflows. the americas and asia and oceania regions followed closely, receiving 64,5 billion us dollars (31,5 percent) and 34,8 billion us dollars (17 percent), respectively, securing the subsequent positions in fdi attraction. based on the trends observed in the table data, a significant shift occurred in fdi destination regions. until 2016, the european region maintained its leadership position among fdi destination regions. however, from 2017 to the present, the asia and oceania region took the lead, becoming the main fdi destination region. american journal of business management, economics and banking volume 29 october 2024 p a g e | 30 www.americanjournal.org in 2021, the global fdi received by the world amounted to 1582,3 billion us dollars, with the asia and oceania region contributing significantly, receiving 718,8 billion us dollars, which represents 45,4 percent of the total. the rise of the asia and oceania region as the leading fdi recipient can be attributed to the “china factor”. in 1990, the people’s republic of china accounted for approximately 1,7 percent of the fdi entering the asia and oceania region (3,3 percent including the hong kong administrative region). however, by 2021, the share of the people’s republic of china had substantially increased to 11,4 percent (20,3 percent including the hong kong administrative region). this growth in china’s contribution played a pivotal role in elevating the region’s prominence as the main fdi destination [6]. over the past 30 years, europe’s fdi attractiveness declined, while america’s remained stable due to the us’s steady economic development. however, asia and oceania have become the most soughtafter region for investors, surpassing europe and challenging america’s prominence. according to unctad statistics, analyzing the volume of fdi outflow by country reveals the usa as the dominant source of global fdi. foreign investors operating in the usa contribute to approximately 23,6 % of the world's total fdi output volume, representing nearly a quarter of all fdi flows. following closely, germany, japan, and the people’s republic of china secured the next positions, with 8,9 %, 8,6 %, and 8,5 % of the world’s fdi output, respectively. apart from being the main source country of fdi, the usa also stands as the largest recipient country of fdi in 2021. the united states’ share accounted for 367 billion us dollars, representing 23,2% of the world's fdi received this year. this amount is twice as much as the next largest fdi recipient, china, which received 181 billion us dollars, constituting 11,4 percent of the global fdi. following the united states and china, hong kong sar received 141 billion us dollars (8,9 percent), singapore received 99 billion us dollars (6,3 percent), and canada received 60 billion us dollars (3,8 percent). these countries occupy prominent positions as fdi recipients, trailing the united states and the people’s republic of china. similar to the cross-sectional analysis of countries and regions above, analyzing global fdi trends by sector and industry is crucial for investors, policymakers, and economic planners. it aids in formulating targeted policies, boosting competitiveness, and identifying promising directions for economic growth. this analysis guides investors in making informed decisions and helps economic planners align development goals with high-growth sectors. in the analysis of the global fdi trend by sector and industry, we examined the allocation of crossborder mergers and acquisitions (m&a) and greenfield investments (new projects from scratch) in the sectors and industries of host countries over a five-year period. the aim was to gain insights into how fdi inflow was distributed across different economic sectors and identify the key areas of investment attraction during this time frame. based on the data from unctad database [7], the total inflow of fdi in host countries through crossborder mergers and acquisitions (m&a) transactions amounted to approximately 694 billion us dollars in 2017. out of this total, the distribution of fdi inflows in the primary, production, and services sectors was as follows: − primary sector: 24,5 billion us dollars − production sector: 326,8 billion us dollars american journal of business management, economics and banking volume 29 october 2024 p a g e | 31 www.americanjournal.org − services sector: 342,7 billion us dollars in 2018, the volume of cross-border mergers and acquisitions (m&a) transactions reached a record high of 815,7 billion us dollars. however, in the subsequent years, 2019 and 2020, this figure declined to 504,5 billion us dollars and 474,9 billion us dollars, respectively. the notable surge in 2018 was primarily influenced by the services sector, which experienced a substantial growth of 37%. conversely, the sharp declines in the following years were also largely attributed to the services sector, experiencing a decline of 51,6%. these declines were primarily influenced by the us-china trade war and the covid-19 pandemic as the main contributing factors. however, in 2021, with the easing of covid-19 related restrictions, there was a resurgence in crossborder m&a transactions, reaching 727,9 billion us dollars. the services sector played a crucial role in this recovery, demonstrating a remarkable growth rate of 108,3%. on the other hand, the manufacturing sector has not yet recovered to its 2018 level, while the primary sector has remained relatively stable over the past five years. in the last 5 years, the agricultural and mining industries within the primary sector have displayed relative stability. despite facing the challenges brought on by the covid-19 pandemic, in 2021 both industries managed to attract fdi through cross-border mergers and acquisitions (m&a) 1,9 billion us dollars and 26,2 billion us dollars, respectively. notably, these figures represent the average fdi inflows for both industries over the past 5 years for the specified year, highlighting their consistent appeal as investment destinations, even amid the pandemic’s uncertainties. despite the downward trend observed in the manufacturing sector until 2020, there was a notable increase of 4,6% in 2021 compared to the previous year. however, it has not yet fully recovered to its pre-pandemic level. in 2017, the inflow of fdi in the manufacturing sector was mainly directed towards the food, beverage, and tobacco products industry (87,8 billion us dollars), followed by pharmaceuticals (78,2 billion us dollars), chemicals (58,5 billion us dollars), machinery and equipment (51,6 billion us dollars), and electronics and electrical equipment (25,6 billion us dollars) industries. by 2021, the attractiveness of foreign investment in the manufacturing sector shifted, with the pharmaceuticals industry leading with 73,5 billion us dollars, followed by automotive (42 billion us dollars), electronics and electrical equipment (38,3 billion us dollars), and chemicals (20,2 billion us dollars) industries displaying relatively high attractiveness. during the last 5 years, a significant decline was observed in the food, beverage, and tobacco products, as well as the machinery and equipment industries. in contrast, the automotive industry experienced remarkable growth, while the metal and metal products, as well as the paper and paper products industries, saw significant increases. these fluctuations indicate the dynamic nature of the manufacturing sector in attracting foreign investments. excluding the years 2019 and 2020, which were impacted by the pandemic, the volume of cross-border mergers and acquisitions (m&a) transactions in the services sector has shown a consistent increasing trend. in 2021, several industries within the services sector displayed relatively high attractiveness for fdi. the information and communication industry led with a significant volume of 135,9 billion us dollars, followed by finance and insurance with 71,9 billion us dollars, trade with 63,5 billion us dollars, transport and storage with 53,3 billion us dollars, professional services with 40,6 billion us dollars, american journal of business management, economics and banking volume 29 october 2024 p a g e | 32 www.americanjournal.org real estate with 40,6 billion us dollars, and administrative and support services with 28,4 billion us dollars. over the past 5 years, the utilities and tourism industries experienced a notable decline in fdi attractiveness. however, there has been an increase in cross-border m&a transactions in the trade, transport and storage, information and communication, and professional services industries, indicating their growing appeal for foreign investors during this period. the trends observed highlight the dynamic nature of the services sector and the changing patterns of fdi attraction within its various industries. greenfield investments are essential for the host country’s economy. unlike fdi through m&a, they create new businesses, generate jobs, transfer technology, and improve infrastructure, fostering economic growth, innovation, and regional development for long-term prosperity. according to unctad database [8], in 2017, the total volume of greenfield investment projects announced in fdi host countries amounted to 699 billion us dollars. although the year 2018 witnessed the highest figure in the last 5 years, with 982,5 billion us dollars, the trend took a downward turn in the subsequent 3 years. the primary cause for this decline was the imposition of quarantine restrictions due to the covid-19 pandemic. the pandemic significantly impacted all sectors, resulting in a sharp drop in the volume of announced greenfield investment projects during this period. by 2021, with the easing of quarantine restrictions that were introduced due to the covid-19 pandemic, there was a notable resurgence in the total volume of greenfield investment projects announced, reaching 659,4 billion us dollars. this increase was observed across all sectors, indicating a positive rebound in investor confidence and a renewed interest in pursuing new projects in fdi host countries. the upward trend in greenfield investment projects signified a step towards economic recovery and growth in the wake of the pandemic’s challenges. in 2021, the announced greenfield investments in the primary, manufacturing, and service sectors amounted to 13,1 billion us dollars, 296,6 billion us dollars, and 349,7 billion us dollars, respectively. notably, only the services sector witnessed an increase in the volume of greenfield investments compared to 2017. the slow recovery of the global economy after the covid-19 pandemic in 2020 played a significant role in this trend. the mining industry within the primary sector was particularly affected by the sharp drop in greenfield investment projects. however, there were no significant changes observed in the agriculture, forestry, and fishing industries. in 2021, the manufacturing sector experienced a significant increase in the volume of greenfield investment projects, reaching 296,6 billion us dollars after a sharp drop in 2020 (240,3 billion us dollars). however, despite the rebound, it did not return to the pre-covid-19 pandemic level seen in 2019 (402,3 billion us dollars). in 2021, the electronics and electrical equipment industry proved to be highly attractive for greenfield investments, drawing 120 billion us dollars. additionally, the automotive industry received 34,2 billion us dollars, chemicals attracted 28 billion us dollars, and both the food, beverages, and tobacco products industry, along with the pharmaceutical industry, received 19,1 billion us dollars each in greenfield investments. over the last 5 years, the electronics and electrical equipment industry stood out with a high growth rate, reflecting its sustained appeal as an investment destination within the manufacturing sector. american journal of business management, economics and banking volume 29 october 2024 p a g e | 33 www.americanjournal.org despite the challenges posed by the pandemic, certain industries managed to maintain their allure for greenfield investments and demonstrated promising growth prospects. in the services sector, similar to the manufacturing sector, the volume of greenfield investment projects announced in 2021 experienced a significant increase after the impact of the 2020 covid-19 pandemic, reaching 349,7 billion us dollars. however, despite the rebound, it did not reach the pre-pandemic level seen in 2019 (412,2 billion us dollars). between 2017 and 2021, the greenfield investments announced in the services sector were mainly directed towards the following industries: energy and gas supply (90 billion us dollars in 2021), construction (49,4 billion us dollars), trade (24,1 billion us dollars), transport and storage services (33,4 billion us dollars), information and communication (104 billion us dollars), finance and insurance (15,3 billion us dollars), tourism (11,7 billion us dollars). over the past 5 years, only the information and communication industry witnessed growth in the volume of greenfield investment projects announced, highlighting its increasing appeal as an investment destination within the services sector. in general, despite experiencing sharp declines in fdi inflows during economic and financial crises as well as pandemics, the global fdi inflows have exhibited a positive growth trend over the past 30 years. notably, developing countries have played a pivotal role in this growth, displaying a stable and substantial increase in fdi inflows during this period. between 1990 and 2021, fdi inflow volumes increased by 4,4 times in developed countries and an impressive 24,9 times in developing countries, underlining the rising significance of developing nations as attractive destinations for foreign investment. during this period, there has been a notable shift in the leadership of fdi reception within the group of developed countries, transitioning from europe to the american region. this trend indicates that european countries are experiencing a decline in their attractiveness for foreign investments. on the other hand, the “china factor” has played a significant role in strengthening the asia and oceania region’s long-term leadership within the group of developing countries, solidifying its position as an increasingly attractive destination for foreign investment. over the past 30 years, the trend indicates that europe is experiencing a decline in its attractiveness as a region receiving fdi. in contrast, america has managed to maintain its appeal, largely due to the stable economic development of the united states. however, currently, investors are increasingly turning their attention to asia and oceania as the most attractive region for making their investments. this shift in focus highlights the growing prominence and potential of the asia-pacific region as a preferred destination for foreign investments, while europe’s allure for investors seems to be waning in comparison. according to industry-wise analysis, fdi inflows through cross-border mergers and acquisitions (m&a) have been prominent in the automotive, metal and metal products, paper and paper products, trade, transportation, and storage sectors over the past 5 years. additionally, the information and communication, as well as professional services industries, have witnessed substantial growth in fdi inflows. furthermore, in terms of the volume of announced greenfield investments, the electronics and electrical equipment industry, along with the information and communication industry, have shown heightened attractiveness for foreign investors. american journal of business management, economics and banking volume 29 october 2024 p a g e | 34 www.americanjournal.org indeed, for predominantly developing countries seeking to attract fdi, it becomes imperative to implement strategic measures aimed at fostering investment in the identified industries and enhancing overall competitiveness. this entails creating a favorable business environment, streamlining regulations, offering investment incentives, and investing in infrastructure development. moreover, targeted policies that encourage innovation, skills development, and technology transfer within these sectors can further elevate their appeal to foreign investors. by effectively promoting these industries and ensuring a conducive investment climate, developing countries can successfully attract fdi, stimulate economic growth, and bolster their competitive position in the global market. references 1. https://www.fdiintelligence.com/content/data-trends/the-recent-history-of-global-investment-adata-perspective-79184. 2. united nations conference on trade and development. world investment report 2021. new york: united nations. 3. united nations conference on trade and development. investment trends monitor, january, 2022, no. 40. 4. united nations conference on trade and development. investment trends monitor, january, 2022, no. 40. 5. unctad, fdi/mne database – www.unctad.org/fdistatistics. 6. unctad, fdi/mne database – www.unctad.org/fdistatistics. 7. unctad, cross-border m&a database – www.unctad.org/fdistatistics. 8. unctad database, based on information from the financial times ltd, fdi markets (www.fdimarkets.com). https://www.fdiintelligence.com/content/data-trends/the-recent-history-of-global-investment-a-data-perspective-79184 https://www.fdiintelligence.com/content/data-trends/the-recent-history-of-global-investment-a-data-perspective-79184 http://www.unctad.org/fdistatistics http://www.unctad.org/fdistatistics http://www.unctad.org/fdistatistics http://www.fdimarkets.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 91 www.americanjournal.org statistical assessment of the efectiva employment of the population in the republic of uzbekistan akbarova zaripa associate professor of the department of economic statistics, tsue e-mail: z.akbarova@tsue.uz +998 98 360 00 08 a b s t r a c t k e y w o r d s when analyzing the labor market, it is important to quantify the relationship between the employed population and general indicators that reflect the development of the economy. to do this, the number of people employed in the economy and the factors affecting this indicator, as well as forecast values, were determined. in this regard, it is important to create multifactorial econometric models based on the study of the labor market of our country, taking into account the factors affecting the employment rate. labor market, employment, unemployment, average nominal wages, sums, volume of capital investments. introduction the development of market relations in the labor sphere requires new approaches to studying employment and its structure. an independent approach is necessary to solve employment problems and review the unemployment situation, as well as to revise the duration and scope of this status. the need to transition from full employment to market relations was determined by the law of the republic of uzbekistan on employment of the population, approved by the state senate on august 7, 2020. article 4 stipulates that employment is an activity of citizens not prohibited by law, related to satisfying their personal and social needs, and bringing them income (labor income). the following citizens are considered employed: persons working under an employment contract for remuneration; persons temporarily absent from their workplace; persons elected or appointed to a paid position; persons serving; persons who are self-employed; persons temporarily engaged in labor activity outside the republic of uzbekistan; persons working in non-governmental non-profit organizations, including religious organizations that carry out their activities in accordance with the legislation. the basis of the study is the basic foundations of statistical theory, the works of representatives of world economic thought, methodological developments of scientists in the field, the study of american journal of business management, economics and banking volume 34 march 2025 p a g e | 92 www.americanjournal.org quantitative aspects of unemployment and employment, development forecasting and modeling, as well as methodological recommendations and official data of state statistics and its territorial divisions, scientific periodicals devoted to the problems of statistical research of the main indicators of labor market development. literature analysis in the international covenant on social, economic and cultural rights, employment is understood as the free and socially necessary activity of a person. this concept is also characteristic of economists such as v.g. kastakov, a.l. nikifirov, ye.i. ruzavina, who understand the process of labor activity by employment. according to a.e. kotlyar, employment is not an activity, but social relations between people. the scientific research of t.n. agapova, s.a. ayvazyan, v.f. voronin, e.k. vasileva, g.l. gromyko, m.r. efimova, a.v. kuznesov, b.t. ryabushkin, n.a. sadovnikova and m.m. yuzbashev studied the issues of forming and improving methodological tools of statistical research. the issues of analyzing the structural structures of the labor market and its development are studied in the works of s.d. ilenkova, i.a. polyakova, v.a. sivelkin, n.v. savchuk and others. the problems of statistical research of employment and unemployment are analyzed in the works of b.d. breev, v.s. bulanov, a.n. vorobev, i.i. eliseeva, m.g. nazarov, s.yu. rochin, n.v. stroykina, v.n. salin and others. employment is understood as providing a person with work, that is, income-generating labor activity. with this approach, employment represents the level of involvement of the population in the labor process, the employment of the population, and the conscious participation of people in the production of spiritual and material benefits. according to a.l. orlova, such an interpretation of this category is rather limited, since it is incorrect to equate such concepts as “work”, “employment” and “labor activity”. n.n. danilenko, v.g. kostakov, a.l. nikiforova, ye.i. ruzavina defined employment as a process of labor activity. employment is a set of various economic, administrative and legal relations associated with the involvement of employees in the labor process. in this regard, a.e. kotlyar emphasizes that employment is not an activity. at the same time, in accordance with current legislation, those who are not directly involved in production can also be considered employed. in order to be considered employed, a person must have a specific job, labor and employment represent a single system. in this case, it is employment that is primary. from the above it follows that employment is a certain socio-economic relationship aimed at satisfying both social and personal needs through the participation of the able-bodied population in socially useful work that generates income. the process of regulating employment is a mechanism for the development of the national economy. the specific features of providing employment to the population are determined by the current situation in the national market of commercial products, along with the development of production, which, in turn, is determined by the objective and subjective factors of the activity of the sectoral complexes of the country's economy. this makes it possible to scientifically substantiate the basic principles of the functioning of the national labor market in the context of economic reforms and further development of human capital. american journal of business management, economics and banking volume 34 march 2025 p a g e | 93 www.americanjournal.org research methodology in recent years, changes have been taking place in the labor market of our republic. as a result of the creation of new jobs, the employment rate is increasing, and the number of unemployed is decreasing. as a result of the increase in wages and the benefits provided to entrepreneurial activity, the income of the population is also increasing. it is important to build multifactor econometric models based on the factors affecting the employment rate based on the study of the labor market of our country. analysis and results the analysis of labor market development trends and their determinants involves the study of the dynamics and structure of labor market performance indicators using a system of statistical indicators representing the labor market, as well as the determination of the dependence of the number of employed people in the economy on a number of factors. the following factors were selected for the multifactor econometric model: as a result factor the number of employed people in the republic of uzbekistan, thousand people (y), and as influencing factors the number of unemployed people in the republic of uzbekistan, thousand people (x1), the average nominal wage in the republic of uzbekistan, soums (x2) and the volume of investments in fixed capital, billion soums (x3). the data involved in econometric modeling were obtained for 20002022 (since the units of measurement of the data are different, we use their logarithmic values).the results of descriptive statistics on factors affecting the number of employed people in the republic of uzbekistan are presented in table 1 below. table 1 descriptive statistics on factors affecting the number of employed persons in the republic of uzbekistan lny lnx1 lnx2 lnx3 mean 9.341869 2.496740 13.54911 9.762960 median 9.385897 2.332144 13.54674 9.878170 maximum 9.545912 4.592085 14.90993 12.45435 minimum 8.985370 0.993252 12.13605 6.612713 std. dev. 0.173093 0.929049 0.764659 1.817153 skewness -0.697262 0.708719 -0.022857 -0.067843 kurtosis 2.212918 2.840273 2.345998 1.837696 jarque-bera 2.457352 1.949865 0.411899 1.312304 probability 0.292680 0.377218 0.813874 0.518844 sum 214.8630 57.42502 311.6296 224.5481 sumsq. dev. 0.659145 18.98892 12.86347 72.64496 observations 23 23 23 23 1. mean lny (highly volatile variable): the mean value is 9.341869. this variable represents the average value relative to the spread of the data. lnx1 (first variable): the mean value is 2.496740. the mean value of this variable indicates the average level of variability among the data. lnx2 (second variable): the american journal of business management, economics and banking volume 34 march 2025 p a g e | 94 www.americanjournal.org mean value is 13.54911. this variable represents the average value that makes up the majority of the data. lnx3 (third variable): the mean value is 9.762960. the mean value of this variable indicates the average level of the data. 2. median lny: the median is 9.385897. the median value of this variable gives information about the central point of the data. lnx1: median 2.332144. the median value represents the point that is evenly distributed among the values. lnx2: median 13.54674. this value represents the average value located in the center of the data. lnx3: median 9.878170. the median value of this variable indicates high variability. 3. maximum and minimum lny: the maximum value is 9.545912, and the minimum value is 8.985370. this variable indicates the small and large limits of variation. lnx1: the maximum value is 4.592085, and the minimum value is 0.993252. this variable is the maximum and minimum points between the values that are widely distributed. lnx2: the maximum value is 14.90993, and the minimum value is 12.13605. these values show a wide variation between the high and low points. lnx3: the maximum value is 12.45435, and the minimum value is 6.612713. this variable shows that the values have a large range. 4. standard deviation lny: the standard deviation is 0.173093, which means that the values of this variable differ very little from each other. lnx1: the standard deviation is 0.929049. this shows that the values of this variable vary significantly. lnx2: the standard deviation is 0.764659. this value is also relatively variable, but the difference of this variable is smaller. lnx3: the standard deviation is 1.817153. this indicates that the variable has high variability. 5. skewness lny: skewness -0.697262. this indicates that the variable is skewed to the left, meaning there are more low values. lnx1: skewness 0.708719. this value is skewed to the right, meaning there are more high values. lnx2: skewness -0.022857. this indicates that the values of the variable are well distributed and there is almost no asymmetry. lnx3: skewness -0.067843. this variable is relatively well distributed, meaning the values are almost symmetrical. 6. kurtosis lny: kurtosis 2.212918. this variable has a skewed distribution, showing high peaks along the mean. lnx1: kurtosis 2.840273. the values of this variable are well distributed and show high concentration. lnx2: kurtosis 2.345998. this variable has moderate kurtosis, showing a good distribution of values. lnx3: kurtosis 1.837696. the values of this variable are relatively flat and have low kurtosis. 7. jarque-bera test lny: jarque-bera test is 2.457352, indicating a closeness to a normal distribution (probability 0.292680, indicating that a normal distribution is acceptable). lnx1: jarque-bera test 1.949865, which also shows that it is close to the normal distribution (probability 0.377218). lnx2: jarque-bera test 0.411899, american journal of business management, economics and banking volume 34 march 2025 p a g e | 95 www.americanjournal.org which shows that this value is very close to the normal distribution (probability 0.813874). lnx3: jarque-bera test 1.312304, which also shows that it is close to the normal distribution (probability 0.518844). 8. sum (amount) lny: amount 214.8630. lnx1: amount 57.42502. lnx2: amount 311.6296. lnx3: amount 224.5481. 9. sum of squared deviations lny: sumsq. dev. 0.659145. lnx1: sumsq. dev. 18.98892. lnx2: sumsq. dev. 12.86347. lnx3: sumsq. dev. 72.64496. 10. observations lny: 23 observations. lnx1: 23 observations. lnx2: 23 observations. lnx3: 23 observations. the distribution of data across multiple variables can be inferred from measures such as skewness and kurtosis. the values of skewness and kurtosis indicate that the distribution of some variables is skewed or uncertain, but some are very close to a normal distribution. a high standard deviation means that the data is widely distributed and some variables show large variations. from the data in table 1 above, it can be seen that the asymmetry coefficient of the unemployment rate (lnx1) factor in the republic of uzbekistan has positive values. the graphs of the distribution functions of all factors are presented in figure 3 below. 0.0 0.5 1.0 1.5 2.0 2.5 8.7 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 de ns ity lny .0 .1 .2 .3 .4 .5 .6 0 1 2 3 4 5 6 de ns ity lnx1 .0 .1 .2 .3 .4 .5 .6 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5 16.0 de ns ity lnx2 .00 .05 .10 .15 .20 .25 4 5 6 7 8 9 10 11 12 13 14 15 kernel normal de ns ity lnx3 figure 1. graphs of distribution functions of factors from figure 1, it can be seen that all factors included in the multifactor econometric model obey the law of normal distribution. the distribution graphs of the factors calculated from the theoretical values of the normal distribution graph are located asymmetrically, that is, shifted. these shifts mainly indicate changes in the dynamics of the factors under study. in some years, some factors had a sharp increase, while in others there were no significant changes. “anomalous” values were observed in the dynamics of some factors. the histogram graph of the normal distribution of the resulting factor is presented in figure 4 below. american journal of business management, economics and banking volume 34 march 2025 p a g e | 96 www.americanjournal.org figure 2. checking the compliance of the resulting factor with the law of normal distribution to check the compliance of the resulting factor (lny) with the law of normal distribution, the jacquesbera criterion is used. this criterion is a statistical criterion that checks the errors of observations with the moments of normal distribution with the third moment (skew) and the fourth moment (excess) with a normal distribution and and . from figure 4, it can be clearly seen that the resulting factor obeys a normal distribution. this is confirmed by the calculated parameters and criteria, namely, the calculated jacques-bera coefficient is equal to 10.0994 and its probability is less than 0.05 (prob=0.0015). to select factors for a multifactor econometric model based on factors affecting the number of jobs in the republic of uzbekistan, it is necessary to analyze the relationships between factors. for this, a correlation analysis is carried out between the factors, that is, the private and pair correlation coefficients between the factors are calculated. the matrix of private and pair correlation coefficients between the factors is presented in table 2 below. from table 2, it can be seen that the private correlation coefficients indicate the density of connections between the resulting factor (lny) and the factors influencing it (lnxi). thus, the private correlation coefficients indicate the existence of various connections between the resulting factor the number of employed persons in the republic of uzbekistan (lny) and the influencing factors. 2-jadval omillar o‘rtasida xususiy va juft korrelyatsiya koeffitsientlari matritsasi lny lnx1 lnx2 lnx3 lny 1.000000 lnx1 0.379643 1.000000 1.334737 ---- 0.1963 ---- lnx2 0.946901 0.531602 1.000000 13.49581 2.876179 ---- 0.0000 0.0590 ---- lnx3 0.960936 0.494837 0.485406 1.000000 15.91058 2.609512 2.52879 ---- 0.0000 0.0664 0.0612 ---- thus, the density of the relationship between the number of employed persons in the republic of uzbekistan (lny) and the number of unemployed persons in the republic of uzbekistan (lnx1) is 0.3796. this indicates that there is a weak relationship between the number of employed persons in the republic (lny) and the number of unemployed persons in the republic (lnx1). the density of the relationship between the number of employed persons in the republic of uzbekistan (lny) and the american journal of business management, economics and banking volume 34 march 2025 p a g e | 97 www.americanjournal.org average nominal wage in the republic of uzbekistan (lnx2) is 0.9469, which also indicates the existence of a strong relationship between these two factors. there is a strong relationship between the number of employed persons in the republic of uzbekistan (lny) and the volume of investments in fixed capital (lnx3), that is, the private correlation coefficient between them is 0.9609. in addition, table 2 also presents pairwise correlation coefficients between the influencing factors. these coefficients determine multicollinearity between factors. if the calculated value of the pairwise correlation coefficient between the influencing factors is greater than 0.7, then multicollinearity between the factors is said to exist. from table 2, where the matrix of private and pairwise correlation coefficients between the factors is calculated, it can be seen that the calculated value of the pairwise correlation coefficient between the factors affecting the number of jobs in the republic of uzbekistan is not greater than 0.8. this, in turn, allows all the selected factors to be included in the multifactor econometric model. table 2 also calculates the coefficients to determine the reliability and probability of the correlation coefficients (the values in the rows below the calculated correlation coefficients). at the bottom of each correlation coefficient, its calculated value and probability by student's t-test are presented. the condition is that the calculated probability between the factors should not be greater than 0.05. for example, the specific correlation coefficient between the number of employed persons in the republic of uzbekistan (lny) and the average nominal wage in the republic of uzbekistan (lnx2) is equal to , and . this indicates that there is a strong connection between these two factors, that the specific correlation coefficient is reliable and that there is a positive high correlation between the two factors with a 95% accuracy. in order to verify the above, that is, to determine the densities and forms of connections between factors, we will consider their dot plots to determine the relationship of each factor with the resulting indicator (lny) (figure 3). 0 1 2 3 4 5 8.8 9.0 9.2 9.4 9.6 lny ln x 1 12.0 12.5 13.0 13.5 14.0 14.5 15.0 8.8 9.0 9.2 9.4 9.6 lny ln x 2 6 8 10 12 14 8.8 9.0 9.2 9.4 9.6 lny ln x 3 figure 3. view of the relationship between the number of employed persons (lny) and the factors influencing it (lnxi) in the republic of uzbekistan in the graphs in figure 3, it can be said visually that there are correct and dense connections between the resulting factor (lny) and the influencing factors (lnxi). thus, the correlation coefficients between the factors included in the multifactor econometric model for the number of jobs in the republic (lny) fully meet the requirements for the calculated value and probability of the student's t-test. this indicates that we include all the factors affecting the number of jobs in the republic (lny) in the multifactor econometric model. in general, the multifactor econometric model looks like this:  +++++= nn xxxy ...22110 , (1) where y is the resulting factor, influencing factors, random error. american journal of business management, economics and banking volume 34 march 2025 p a g e | 98 www.americanjournal.org the "least squares method" was used to determine the values of the unknown parameters in the multivariate econometric model (1). the results are presented in table 3 below. table 3 parameters of a multifactor econometric model calculated for the number of employed persons in the republic and the factors affecting it variable coefficient std. error t-statistic prob. lnx1 -0.053008 0.007444 -7.120463 0.0000 lnx2 0.097680 0.046175 2.115436 0.0478 lnx3 0.064440 0.018939 3.402571 0.0030 c 7.521603 0.439759 17.10392 0.0000 r-squared 0.979119 mean dependent var 9.341869 adjusted r-squared 0.975822 s.d. dependent var 0.173093 s.e. of regression 0.026915 akaike info criterion -4.235519 sum squared resid 0.013764 schwarz criterion -4.038042 log likelihood 52.70847 hannan-quinn criter. -4.185854 f-statistic 296.9729 durbin-watson stat 1.901030 prob(f-statistic) 0.000000 using the data in table 3 above, we express in analytical form the multifactor econometric model for the number of employed persons (lny) in the republic: 321 ln0644,0ln0977,0ln0530,05216,7ˆln xxxy ++−= , (2) the multifactor econometric model calculated for the number of employed persons in the republic of uzbekistan shows that if the number of unemployed persons in the republic of uzbekistan (lnx1) increases by an average of one percent, the number of employed persons in the republic of uzbekistan (lny) decreases by an average of 0.05 percent. if the average nominal wage in the republic of uzbekistan (lnx2) increases by an average of one percent, the number of employed persons in the republic of uzbekistan (lny) increases by an average of 0.09 percent. an increase in the volume of investments in fixed capital in the republic (lnx3) by an average of one percent leads to an increase in the number of employed persons in the republic of uzbekistan (lny) by an average of 0.06 percent. to check the quality of the multifactor econometric model (2) constructed for the number of employed persons in the republic of uzbekistan, we check the coefficient of determination. the coefficient of determination shows how much the resulting factor is composed of the factors included in the model. the calculated coefficient of determination (r2 r-squared (table 3)) is equal to 0.9791. this indicates that 97.91 percent (2) of the number of employed persons in the republic of uzbekistan (lny) is composed of the factors included in the multifactor econometric model. the remaining 2.09 percent (100.0-97.91) is the influence of factors not taken into account. to check the statistical significance or adequacy (fitness) of the multifactor econometric model (2) constructed on the number of employed persons in the republic of uzbekistan (lny) to the process under study, fisher's f-test is used. the calculated value of fisher's f-test is compared with its value in the table. if fcount>ftable, then the multivariate econometric model (2) is said to be statistically significant and can be used to forecast the resulting indicator the number of employed persons in the republic of uzbekistan (lny) for future periods. now, to check the statistical significance of the multivariate econometric model (2) constructed on the number of employed persons in the republic of uzbekistan, we find the tabular value of the f-criterion. to do this, we calculate the values of the degrees of freedom and and the significance level. based on american journal of business management, economics and banking volume 34 march 2025 p a g e | 99 www.americanjournal.org the significance level and the degrees of freedom and, the tabular value of the f-criterion is equal to . based on the fact that the calculated value of the f-criterion is fcount=296.97 and the table value ftable=3.13, and since the condition fcount>ftable is met, the multifactor econometric model (2) can be considered statistically significant and can be used to forecast the number of employed persons (lny) in the republic of uzbekistan for future periods. the student's t-test is used to check the reliability of the calculated parameters of the multivariate econometric model (2) based on the number of employed persons in the republic of uzbekistan (lny). by comparing the calculated (thisob) and tabular (ttabval) values of the student's t-test, we accept or reject the hypothesis n0. to do this, we find the tabular value of the t-test based on the selected reliability probability ( ) and degree of freedom ( ). here the number of observations, the number of factors. when the reliability probability and degree of freedom are, the tabular value of the t-test is equal to . from the calculations carried out on the construction of the multivariate econometric model, it can be seen that the calculated values of the t-test for the independent variable and all factors included in the multivariate econometric model are significantly greater than the tabular value (table 3). this indicates that all factors are reliable and allows these factors to participate in the multivariate econometric model. the calculated dw value is compared with the dwl and dwu in the table. if dwcalc<dwl is less than, then the residuals of the resulting factor are said to have autocorrelation. if dwcalc>dwu is greater than, then the residuals of the resulting factor are said to have no autocorrelation. the lower limit of the durbin-watson criterion is equal to dwl=1.08 and the upper limit is equal to dwu=1.66. dwcalc=1.9010. therefore, since dwcount>dwu, there is no autocorrelation in the residuals of the resulting factor (number of employed persons in the republic of uzbekistan (lny)). the absence of autocorrelation in the residuals of the resulting factor also indicates that the multifactor econometric model (2) presented above can be used in forecasting. the actual (actual), estimated (fitted) values of the multifactor econometric model (2) and the differences between them (residual) are presented in figure 6 below. -.06 -.04 -.02 .00 .02 .04 .06 8.8 9.0 9.2 9.4 9.6 00 02 04 06 08 10 12 14 16 18 20 22 residual actual fitted figure 4. graph of the actual (actual), estimated (fitted) values of the number of employed people (lny) in the republic of uzbekistan and the differences between them (residual) it can be seen from figure 4 that the graph of the calculated values of the number of employed persons in the republic of uzbekistan according to the multifactor econometric model (2) is very close to the graph of its actual values, and the differences between them are not very large. this is another proof american journal of business management, economics and banking volume 34 march 2025 p a g e | 100 www.americanjournal.org that the multifactor econometric model (2) can be used to forecast the size of the bank's net profit for future periods. to do this, first of all, we will build trend models for each of the influencing factors. a trend model is a time-dependent function of an influencing factor and generally has the following form:  ++= tx i 10 (3) initially, the trend model for the number of unemployed people in the republic of uzbekistan, per thousand people (lnx1), looks like this: tx += 0659,07054,1ˆln 1 (4) 6317,02 =r , 3346,6хисоб =f , 5168,2хисоб =t the trend model for the average nominal wage in the republic of uzbekistan, soums (lnx2) looks like this: tx += 1110,02167,12ˆln 2 (5) 9699,02 =r , 12,677хисоб =f , 021,26хисоб =t the trend model for the volume of investments in fixed capital, billion soums (lnx3) looks like this: tx += 2669,0559,6ˆln 3 (6) 9930,02 =r , 98,2997хисоб =f , 7538,54хисоб =t the analysis of the trend models constructed between the influencing factors (lnxi) and the time factor (t) shows that the statistical significance of all the calculated coefficients in the trend models (4) – (6) and the reliability of their parameters have been determined. so, we calculate the trend models (4) – (6) and, having put their calculated values into the multifactor econometric model (2), first calculate the forecast values of the influencing factors, and then the forecast values of the resulting factor. we exponentiate the forecast values to free them from the logarithm. as a result, we get the values of the variables included in the multifactor econometric model constructed by the number of employees in the republic of uzbekistan in the forecast period (table 4) table 4 the number of employed people in the republic of uzbekistan and the forecast values of the factors influencing it for 2025-2030 years number of posts, thousand people, y number of unemployed, thousand people, x1 nominal wage, soums, x2 investments in fixed assets, billion soums, x3 2000 7985,4 14,2 186475,3 744,5 2001 8365,2 12,1 216547,1 1320,9 2002 8634,7 8,6 269874,4 1526,6 2003 9145,7 9,3 316524,3 1978,1 2004 9547,8 10,4 376478,4 2629,0 2005 9845,5 7,3 463578,8 3165,2 2006 10456,7 7,2 534213,7 4041,0 2007 10865,2 6,5 593642,1 5903,5 2008 11124,6 8,9 635472,6 9555,9 2009 11423,7 10,3 665247,9 12531,9 2010 11628,4 16,2 718364,6 16463,7 2011 11919,1 12,9 764321,8 19500,0 2012 12223,8 6,0 834576,2 24455,3 2013 12523,3 5,4 896412,5 30490,1 american journal of business management, economics and banking volume 34 march 2025 p a g e | 101 www.americanjournal.org 2014 12818,4 3,4 942124,3 37646,2 2015 13058,3 2,7 986514,2 44810,4 2016 13298,4 5,0 1064214,6 51232,0 2017 13520,3 14,4 1251538,0 72155,2 2018 13273,1 32,3 1542598,3 124231,3 2019 13541,1 57,9 1946778,3 195927,3 2020 13236,4 37,1 2227141,2 210195,1 2021 13538,9 98,7 2662002,8 239552,6 2022 13987,4 63,4 2987452,2 256364,2 2023 15314,2 26,8 2903757,1 427988,7 2024 15694,9 28,6 3244753,7 558965,5 2025* 16085,0 30,6 3625794,5 730025,0 2026* 16484,9 32,7 4051582,1 953433,5 2027* 16894,7 34,9 4527371,1 1245211,6 2028* 17314,7 37,3 5059033,4 1626282,0 2029* 17745,1 39,8 5653130,4 2123971,0 2030* 18186,3 42,5 6316993,9 2773967,0 note *forecast period in conclusion, it can be said that the forecast calculations based on a multifactor econometric model representing the number of employed persons in the republic of uzbekistan show that the factors affecting the number of employed persons have a tendency to increase during the forecast period. however, it would be advisable to regulate and control some of the influencing factors. conclusions and suggestions the problem of unemployment is a very important and urgent problem that needs to be solved in all countries of the world, especially in our republic. currently, in uzbekistan, when the scope of informal employment is expanding, it is difficult to completely control unemployment. the main labor resources are engaged in seasonal work. also, the increase in youth unemployment is becoming a big problem in uzbekistan. unemployment is not only a social and economic problem, but also a political problem that every country can face. this situation can have a detrimental effect on the entire economic life of society and lead to significant socio-economic losses. unemployment is one of the issues without which it is impossible to conduct effective economic activity. in conclusion, labor market statistics are faced with the tasks of improving the methodology for determining statistical indicators based on the interpretation of the terms labor resources, economically active and inactive population, employment of the population, unemployment, studying the number, composition, and productivity of employees in enterprises and organizations. in addition, familiarizing the population with the state of the labor market and providing management bodies with information is also one of the most important tasks of statistical bodies. in our opinion, it is precisely a comprehensive approach to the system of ensuring employment of the population and managing social protection that reduces difficulties in labor relations and ensures an increase in the quality of work activities of the population. american journal of business management, economics and banking volume 34 march 2025 p a g e | 102 www.americanjournal.org references 1. maslova i.s. effektivnaya zanyatost i rynok labor force / i.s. maslova // vestnik statistician. – 2008. – no. 12. – p.8–19. 2. roshchin, s. yu. gendernoe ravenstvo i rasshirenie prav i vozmojnostey genshchin v rossii v kontekte seley razvitiya tysyacheletiya / s.yu. roshchin, n.v. zubarevich. m.: information center oon, 2005. 73 3. sarukhanov, e.r. upravlenie zanyatostyu naseleniya / e.r. sarukhanov. spb.: spbuef, 1993. 164p. 4. shuvaeva, ye.v. zanyatost kak vajneyshiy element trudovykh otnosheniy / ye.v. shuvaeva // aktualnye voprosy ekonomicheskikh nauk. ufa: leto, 2011. p.96-98. 5. maslova i.s. effektivnaya zanyatost i rynok labor force / i.s. maslova // vestnik statistician. – 2008. – no. 12. – p.8–19. 6. yefimova, m.r. osnovnye tendendii i osobennosti migratsii naseleniya v regionakh rossiyskoy federatsii / m.r. yefimova, s.g. bychkova // rol statistiki v razvitii obshchestva. istoricheskiy opyt. dostigenia. perspective. kostroma: kostroma state university, 2015. p. 205-210 7. yeliseeva, i.i. econometricheskie zavizimosti: principy i metody postroeniya / i.i. yeliseeva, g.b. kleiner, s.a. smolyak // ekonomika i matematicheskie metody. 2001. t. 37. no. 1. p. 124-132. 8. i.i. eseleeva. econometrics: uchebnoe posobie m.: finance and statistics, 2001. pp. 41-87. 9. soatov n.m, ayubjonov a.kh. /theory of statistics/. textbook.-t.: teacher, 2020 647 pages. 10. umarova m.a. economic and statistical analysis of factors of the international labor market // international journal of research in management & business studies ((ijrmbs 2019) issn: 234865033(online)) vol. 6, issue 2 april june 2019 (#5, gif 0.705). american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 156 www.americanjournal.org interrelationship between the formation of local budget revenues with the economic and investment capacity of regions yusupov ruslan bakhtiyorovich independent researcher at tsue a b s t r a c t k e y w o r d s this article analyzes the relationship between the process of local budget revenue formation and the economic and investment potential of regions. the impact of regional economic activity, the level of investment attraction, and local production capabilities on budget revenues is shown. also, differences in revenue formation across regions and their causes are studied, and practical proposals are developed to expand the budget revenue base by improving the investment climate. local budget, revenue base, economic potential, investment climate, regional development, budget policy, financial stability. introduction in modern conditions, one of the important financial and economic foundations of the sustainable development of the national economy is largely dependent on the systematic formation of centralized monetary funds at the disposal of the state and the effective financing of socio-economic development programs on a national and regional scale at their expense. because in ensuring the development of the country's economy within the strategic contours, ensuring sustainable economic growth through the wide attraction of internal and external investment resources to it, financial regulation by the state at one or another phase of its cyclical development has a high multiplier effect. the system of financial regulation aimed at ensuring effective economic growth or macroeconomic stability in one or another phase of the cyclical development of the economy depends on the scale and scope of state revenues formed and distributed through market instruments of primary and redistribution of the national income created in it. in particular, if this process is considered in a logical pragmatic sequence, national income, as one of the main macroeconomic indicators, embodies the main element of gdp and represents the material and financial expression of the value added created on a macro scale. before researching the nature of income formation of budget system budgets, it is appropriate to research the nature of the state budget as an economic category and its scientific conceptual foundations in modern conditions. american journal of business management, economics and banking volume 35 april 2025 p a g e | 157 www.americanjournal.org 2. review of literature a number of economists have conducted scientific research on the scientific-theoretical, organizational-economic foundations of increasing the revenue base of local budgets by increasing the investment activity of regions and the methodology for its comprehensive assessment. in particular, m. balanguwer-coll [1], f. ballansode [2], g. boyne, s. burnside, r. giniyatullina [3], g. poliak [4], a. babich [5], v. glotov, a. albekov, e. alifanova, v. kuznesova [6], l. vardomaskaya, m. soloveykina [7], v. kovaleva, romanovsky foreign economists such as m.v., o. rublevskaya, b. sabanti, o. hordei, t. kaneva, m. karpenko, p. jaquiss, k. krzysztof have extensively researched the determinants of the stability of the income base of local budgets and factors influencing it. local economists a. vakhobov, t. malikov, a. juraev, a. burkhanov, o. meliev [9], m. khaidarov [10], kh. kurbanov [11], sh. musalimov [12], kh. kobulov, l. khazratkulova, s. elmirzaev, u. urokov [13] and others have systematized scientific research on the financial stability of local budgets and ways to strengthen it. 3. analysis and results indirect costs affecting the economic development of regions. a vivid example of these costs is the cost of financing the economy and centralized investments. these costs directly affect the development ratios of the regional economy. from the data in table 1, it can be seen that in 2017, in the city of tashkent (20151 million soums), navoi (15447.7 million soums), tashkent (10225.2 million soums) regions with high economic potential, the share of grp per capita in the republic of uzbekistan was higher than the average indicator (9802.1 million soums). by 2023, the same picture will be observed, that is, the highest nominal value of grp per capita in tashkent city (60,648 million soums), navoi (76,913.1 million soums), tashkent (35,703 million soums) regions will be higher than the average value of grp per capita in the republic of uzbekistan (average 29,291.4 million soums). table 1 gross domestic (regional) product per capita in thousand soums regions 2017 2018 2019 2020 2021 2022 2023 growth in 2023 compared to 2017, in % republic of uzbekistan 9802,1 12945,7 15863,8 17688,5 21149,2 25151,9 29291,4 298,8 republic of karakalpakstan 5932,1 8417,4 10380 11335,4 13264,7 15348,1 16545,8 278,9 andijan 6612,8 8889,4 10842,1 12036 13454 17179,6 20313,6 307,2 bukhara 9257,9 11605 14645 16189,2 19546,4 23140,6 26262,9 283,7 jizzakh 7373 9498,5 11743,8 13207,6 16309,9 18873,2 22342,1 303,0 kashkadarya 6925,3 8312,3 9924,9 10687 12622 14423,2 16585,1 239,5 navoi 15447,7 23240,3 36653,1 49513 57370,6 65855,6 76913,1 497,9 namangan 5721,7 6899,6 8542,4 9814 11794,3 13684,5 15539,5 271,6 samarkand 7335,8 8693,1 10100,3 10996,3 13258,2 15124,1 17801,6 242,7 surkhandarya 5788,9 7313,8 8574 9275,2 10948,8 12392 14395,7 248,7 syrdarya 8399,8 10369,1 14157,3 14999,7 17327,5 20516,9 23804,2 283,4 tashkent 10225,2 13885,9 18751,9 21833,1 28206,4 31952,4 35703,7 349,2 fergana 5775,7 7537,1 8747,6 9830 12379 14306,8 16367,9 283,4 khorezm 6705,4 8734,9 10333,9 11338,6 13865,1 16764,2 18674,9 278,5 tashkent city 20151 25532,4 33344 36051,4 43166 51435,4 60648,2 300,97 american journal of business management, economics and banking volume 35 april 2025 p a g e | 158 www.americanjournal.org if we look at the growth rate compared to the beginning and end of the analyzed period, the average growth rate across the republic was 298.8 percent, with higher-than-average growth rates observed in andijan (307.2 percent), jizzakh (303.0 percent), navoi (497.9 percent) regions and tashkent (349.2 percent) city. however, in all regions, per capita incomes increased by almost 2 times during the analyzed period. the growth of gross regional product per capita is a multifactorial phenomenon, and one of the main factors for its increase in a strategic context is ensuring regional investment activity. it is worth noting that investment activity in the regions primarily depends on the investment and economic potential of each region, and the implementation of investments based on the existing economic potential in the regions forms the basis of an effective regional economic policy ensured at their expense. it is advisable for centralized investments from the republican and local budgets to ensure effective economic growth in a strategic context based on the above factor. thus, budget investments should not only embody the system of supporting investment activities of the regions, but also perform the function of a balanced territorial distribution of existing state investment resources. table 2 volume of investments in fixed capital per capita (in thousand soums) regions 2017 2018 2019 2020 2021 2022 growth in 2022 compared to 2017, in % republic of uzbekistan 2227,8 3769,6 5834,6 6140,3 6861 7468,6 335,2 republic of karakalpakstan 1528,8 3641,1 4644,4 3710 4189,2 5225,5 341,8 andijan 999,6 1550,3 2406 3047,2 3470,1 4361,1 436,3 bukhara 6254,2 5112,4 5429,3 6295 10462,9 10855,5 173,6 jizzakh 1361,9 2693,9 5778,9 8984,7 6470,8 7107,9 521,9 kashkadarya 3583,4 5193,4 7534,6 6214,7 5148,2 4647,7 129,7 navoi 4185,5 10892,1 17855,2 15604,2 14672,4 17189,8 410,7 namangan 1340,3 2992,5 4344,1 4229,2 4477,8 4984,4 371,9 samarkand 1189,5 1878,3 2674,9 3746 3920,7 4642,5 390,3 surkhandarya 1427,1 2848,3 4552,8 3792,2 4438,7 4169,4 292,2 syrdarya 2011,1 3280,2 7002,9 8425,4 9257,1 13919,1 692,1 tashkent 2087,2 3898,4 6970 7169 9644,5 12056,8 577,7 fergana 822,4 1516,8 2336,2 2916 3272,3 3917,2 476,3 khorezm 1215 1655,6 2718,4 2868,2 4344,3 4517,9 371,8 tashkent city 5552,8 10627,8 16710,5 19065,6 20619,8 19539,4 351,9 from the data in table 2, we can see that the volume of investments in fixed capital per capita in the republic of uzbekistan averaged 2227.8 thousand soums in 2017, while this indicator reached 7468.6 thousand soums by 2022. in 2022, the above-average indicator was recorded in the bukhara (10855.5 thousand soums), navoi (17189.8 thousand soums), syrdarya (13919.1 thousand soums), tashkent (12056.8 thousand soums) regions and the city of tashkent (19539.4 thousand soums). american journal of business management, economics and banking volume 35 april 2025 p a g e | 159 www.americanjournal.org if we look at the growth rate of fixed capital investments per capita at the beginning and end of the analyzed period, it was lower than the average indicator for the republic (335.2 percent) in bukhara (173.6 percent), kashkadarya (129.7 percent), and surkhandarya (292.2 percent) regions. from this it can be concluded that: firstly, investment activity in all regions does not show a systematic growth trend in the given period. secondly, in regions with high investment potential and investment activity, a decrease in the dynamic growth rate of this indicator has been observed in recent years. thirdly, as a result of the tasks set to increase investment activity in the last 2-3 years in regions with low per capita investment in fixed capital, investment activity has increased sharply. the economic and investment activity of the regions is directly reflected in the formation of local budget revenue opportunities. from the data in table 3, we can see that the total revenue of local budgets in 2017 amounted to 20547.9 billion soums, while this indicator showed a growth trend in the analyzed periods and reached 55728.9 billion soums in 2023. compared to the beginning and end of the analyzed period, the highest growth rates of local budget revenues were recorded in navoi region (4.1 times), namangan (3.1 times), tashkent (3.4 times) regions and tashkent city (3.4 times). by 2023, the largest amount of revenues, both in nominal terms, will fall on the above regions. table 3 data on the dynamics of local budget revenues (excluding transfers), in billion soums № regions 2017 2018 2019 2020 2021 2022 2023 g ro w th i n 2 0 2 3 co m p ar ed t o 2 0 1 7 , ti m es 1 republic of karakalpakstan 1485,2 2241,1 2953,3 2743,9 1869,3 2499,5 2843,7 1,9 2 andijan 1762,9 1708,9 2624,6 2105,9 2418,6 3246,5 3931,2 2,2 3 bukhara 1335,6 1383 2409,5 1782,9 2374,1 3425,3 3876,5 2,9 4 jizzakh 766,1 948,3 1240,9 1057,9 1460,4 1822,8 2227,9 2,9 5 kashkadarya 1786,6 2341,1 3783,9 2468,8 2722,1 3919,9 4607,5 2,6 6 navoi 745,3 1217,1 1877,8 1540,9 1947,8 2432,9 3039,4 4,1 7 namangan 1146,2 1360 2237,8 1763 2297,1 3265,4 3516,8 3,1 8 samarkand 2168,7 1970,8 2567,2 2385,6 3154,8 4197,7 5100,1 2,4 9 surkhandarya 1138,4 1378,3 1844,9 1605,7 1993,3 2670,6 3043 2,7 10 syrdarya 629,3 710,2 816,7 716,5 881,7 1147,8 1390,3 2,2 11 tashkent 1774,9 1949,3 3721,5 2395,5 3734,1 4526 6024,1 3,4 12 fergana 2153,7 1833,2 3836,1 2677,3 3665,1 4778,5 5169,3 2,4 13 khorezm 1214,1 1106,3 1467,3 1302,7 1743,1 2384,2 2740,7 2,3 14 tashkent city 2440,9 2796,4 3752,8 3156,3 4911,4 7073,2 8218,3 3,4 overall 20547,9 22944 35134,3 27702,9 35172,9 47390,3 55728,9 2,7 american journal of business management, economics and banking volume 35 april 2025 p a g e | 160 www.americanjournal.org in particular, by 2023, the nominal value of the local budget revenues of tashkent city will reach 5024.1 billion soums, and the local budget revenues of tashkent region will reach 8218.3 billion soums. if we consider the dynamic changes in revenues for local budgets, excluding social transfers from the republican budget, we can observe a positive correlation between grp and investment activity. thus, we can systematize the initial conclusions based on the following 3 analytical tables: the financial potential that forms the revenues of local budgets primarily depends on the regional economic potential and investment activity. theoretically, although there is a temporary lag in the impact of investments on economic growth and, in particular, on the growth of local budget revenues, which are its components, it is an important financial factor in the formation of stable revenues in the future. the consistent increase in the revenue potential of local budgets, first of all, creates opportunities for financing standard social services at the expense of these revenues, and these financial resources also create the conditions for financing centralized investments through the budget. this can be seen from the table below. table 4 share of budget system budgets as a source of financing fixed capital investments by region, as a percentage of the total regions \ years 2017 2018 2019 2020 2021 2022 republic of uzbekistan 4,8 4,5 9 6,8 9,3 8 republic of karakalpakstan 7,4 3 15,3 12,1 12,4 14 andijan 4 4,1 8,6 6,3 8,3 8,9 bukhara 0,9 2,4 7,1 5,8 4,7 4,8 jizzakh 6,7 9,4 10,8 5,5 9,9 10,8 kashkadarya 1,5 1,9 3,7 3,6 6,5 8,9 navoi 5,1 0,7 2,8 1,9 4,6 3,7 namangan 3,6 2,8 4,9 5,9 8,3 6,6 samarkand 5,5 2,7 12,1 8 14 9,6 surkhandayra 7,1 3,2 5,8 7,5 10,8 12,3 syrdarya 18,7 9,6 10,5 7,8 9,8 6 tashkent 4,3 3,4 11,5 9,6 8,3 5,8 fergana 8,2 3,6 8,1 7,6 10 7,4 khorezm 6,9 5 9,5 8,5 10,2 9,2 tashkent city 7,2 6 7,6 6,8 8,2 8 from table 4, we can see that the growth rate of the share of the state budget in fixed capital investments in the republic of uzbekistan is expressed in the trend, amounting to 8 percent in 2022. in the same trend, the share of budgets in the structure of sources of financing fixed capital investments in the regions is high in the republic of karakalpakstan (14 percent), andijan (8.9 percent), jizzakh (10.8 percent). kashkadarya (8.9 percent), samarkand (9.6 percent), surkhandarya (12.3 percent), khorezm regions (9.2 percent), and tashkent city (8 percent). the analysis confirms that the trend of changes in local budget revenues in the analyzed periods. american journal of business management, economics and banking volume 35 april 2025 p a g e | 161 www.americanjournal.org 4. conclusion 1. creating a favorable investment and business environment in the regions is the main condition for the sustainable development of the regional economy. therefore, the priority areas of economic policy require the formation of a legislative framework that ensures a favorable investment and business environment, which requires the implementation of the following measures: 2. a radical improvement in investment and business conditions is the main factor in the economic development of the regions. the sources of financing investment activity depend on the volume of private and public funds formed at the expense of the national income generated in the national and regional economy and the personal income of economic agents that are its components. 3. a favorable business environment and investment activity are ensured by an effective fiscal system, which significantly reduces the tax burden. 4. increasing the revenue potential of local budgets and achieving their financial stability as a result of expanding the tax base due to a favorable business environment and consistent economic growth; 5. stimulating progressive structural changes observed in the economies of regions in modern conditions; restructuring natural monopolies; developing financial infrastructure and achieving medium-term financial stability are ensured by revitalizing large-scale and strategically important investment activity. achieving these ultimate macroeconomic goals through investment activity ensures consistent growth of national income and increases the revenue potential of the budget system budgets. references 1. balaguer-coll, m.t. local government efficiency: determinants and spatial interdependence / m. t. balaguer-coll, m. i. brun-martos, l. marquez-ramos, d. prior // applied economics. 2019. – № 14(51). – p.1480-1483. – doi 10.1080/00036846.2018.1527458. 2. balassone, f. assessing fiscal sustainability: a review of methods with a view to emu [electronic resource] / f. burnside, с. fiscal sustainability in theory and practice [text] : a handbook / c. burnside. world bank, 2005. 285 p. 3. 3. giniyatullina, r.r. the role of the state budget in the development of the country / r.r. giniyatullina. — text: electronic // novainfo, 2016. — no. 45 — pp. 191-195 — url: https://novainfo.ru/article/5780 (data circulation: 03/23/2024). 4. 4. budget system of russia: textbook for universities / edited by prof. g.b. poliak. m.: unitydana, 1999. – (p. 19) 550. 5. 5. babich, a. m. state and municipal finances: textbook / a. m. babich, l. n. pavlova. 2nd ed., revised. and additional. moscow: unity-dana, 2017. 704 s.: tabl. access mode: by subscription. – url: https://biblioclub.ru/index.php?page=book&id=684682; 6. 6. kuznetsova, v. p. finance and credit: a teaching aid: [16+] / v. p. kuznetsova, l. p. vardomskaya, m. p. soloveikina; edited by v. p. kuznetsova; 7. 7. ivasenko, a. g. finance: 100 exam answers: textbook: [16+] / a. g. ivasenko, v. d. mikhalev, ya. i. nikonova. – 4th ed., ed. – moscow: flinta, 2022. – 281 p. – access mode: by subscription. – url: https://biblioclub.ru/index.php?page=book&id=103527. 8. 8. kovaleva v. v. finance: textbook. 2nd ed., revised and enlarged./ed. m .: tk velbi, prospect publishing house, 2007. pp. 184-195 (610 p). https://novainfo.ru/article/5780 https://biblioclub.ru/index.php?page=book&id=684682 https://biblioclub.ru/index.php?page=book&id=103527 american journal of business management, economics and banking volume 35 april 2025 p a g e | 162 www.americanjournal.org 9. meyliev o. r. mahalliy byudjetlar moliyaviy barqarorligini ta’minlash yo‘llari // “xalqaro moliya va hisob” ilmiy jurnali. №4, avgust, 2021-yil. issn: 2181-1016. / https://www.researchgate.net/publication/354782180. 10. xaydarov m.t. mahalliy byudjetlar mustaqilligini oshirish masalalari // iqtisod va moliya, 2017y.21-30 bb. / https://cyberleninka.ru/article/n/ma-alliy-byudzhetlar-musta-illigini-oshirishmasalalari. 11. x.a.qubonov hududlar byudjet salohiyatini oshirish orqali ularni subvensiya dan chiqarish imkoniyatlari. // iqtisodiyot va taʼlim, 2017-yil, maxsus son. 60-65 betlar. 12. musalimov sh. i. doxodnыy potensial mestnыx byudjetov: osobennosti i problemы formirovaniya v sovremennыx usloviyax // “iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. № 2, mart-aprel, 2020-yil.-16-245 betlar. https://iqtisodiyot.tsue.uz/sites/default/files/maqolalar/3_musalimov.pdf. 13. o‘roqov u. yu. mahalliy byudjetlar mustaqilligini oshirishni takomillashtirish yo‘llari», 08.00.07 – moliya, pul muomalasi va kredit ixtisosligi bo‘yicha iqtisodiyot fanlari bo‘yicha falsafa doktori ilmiy darajasini olish bo‘yicha dissertatsiya avtoreferati. https://cyberleninka.ru/article/n/ma-alliy-byudzhetlar-musta-illigini-oshirish-masalalari https://cyberleninka.ru/article/n/ma-alliy-byudzhetlar-musta-illigini-oshirish-masalalari https://iqtisodiyot.tsue.uz/sites/default/files/maqolalar/3_musalimov.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 73 www.americanjournal.org the role of infrastructure in the innovative development of small businesses m. m. dadaboyeva associate professor of the department of “economics” andijan state technical institute, uzbekistan, andijan a b s t r a c t k e y w o r d s this article comprehensively analyzes the role of infrastructure in the innovative development of small businesses. in particular, the influence of elements of scientific and technical, information and communication, and financial infrastructure on the activities of small business entities has been revealed. also, the current state of infrastructure facilities, their shortcomings, and proposals and recommendations for their improvement have been developed. based on foreign experience, the article outlines ways to further develop the infrastructure for innovative support of small businesses in uzbekistan. small business, innovative development, infrastructure, technopark, startup, scientific and technical base, information technology, business environment, economic development, investments. introduction input in the economy of uzbekistan, identifying efficient and purposeful directions for the use of production factors and increasing the effectiveness of reforms in this regard are closely linked to innovation. nowadays, under the influence of innovation, structural approaches in the production process are gradually changing. as a result, opportunities for achieving intensive economic growth through increased efficiency in the use of material resources are emerging. experience shows that in most cases, innovative activity is associated with the creation of new products, services, and types of work, introducing qualitatively new approaches to the market. innovation not only positively affects economic indicators but also creates opportunities to meet social needs more efficiently and form new market segments. this, in turn, contributes to the qualitative transformation of entrepreneurial activity and improves its effectiveness. at the same time, structural improvement processes are becoming an integral part of this activity. in recent years, the development of entrepreneurship has taken a central role in the deep economic reforms carried out in our country. these reforms contribute to the growth of small business and private entrepreneurship in the gross domestic product, ensuring employment, and accelerating structural changes in various sectors of the economy. the need to continue supporting entrepreneurial entities through consistent reforms was emphasized in the address of the president of the republic of uzbekistan to the oliy majlis on december 21, 2022: american journal of business management, economics and banking volume 38 july2025 p a g e | 74 www.americanjournal.org “we will continue to rapidly implement the reforms we have initiated to ease responsibility in the field of entrepreneurship” [1]. from this point of view, it becomes necessary not only to rely on traditional approaches in the development of small business and private entrepreneurship but also to introduce innovative mechanisms and modern structural and management models. one of the important legal foundations in this direction is the presidential decree no. pq-3697 dated may 5, 2018. this decree outlines additional measures to create favorable conditions for the development of active entrepreneurship and innovative activity. it emphasizes the importance of systematizing the process of promoting innovative entrepreneurship, overcoming technical and psychological barriers, and organizing the development and promotion of innovative products and services [2]. the role of infrastructure in the innovative development of small business is one of the most discussed topics in global academic discourse today. a range of international, cis, and uzbek scholars have conducted in-depth studies in this area. the following is a structured review of the most relevant literature based on the contribution of western scholars, followed by researchers from the cis and uzbekistan. one of the foremost researchers in the field of innovation and competitiveness, michael porter, in his book the competitive advantage of nations (1990), emphasizes the crucial role of innovation infrastructure in ensuring national economic competitiveness. according to porter, for small businesses to succeed, they must maintain strong linkages with research institutions, technology parks, incubators, and universities [3]. joseph schumpeter, in his innovation-driven economic growth theory, defines innovation as the key driver of economic progress. he argues that small enterprises, due to their adaptability and flexibility, are often the primary agents of innovation in an economy [4]. muhammad yunus, in banker to the poor (2006), highlights the importance of infrastructure in supporting micro-enterprises, especially in rural areas. he advocates for the expansion of microfinance and technological infrastructure to promote innovation and entrepreneurship among underserved populations [5]. among scholars from the commonwealth of independent states (cis), a.n. kleiner (russia) focuses on the institutional infrastructure required to support small business—such as consulting centers, loan guarantee systems, technology parks, and mechanisms of public-private partnership. he asserts that small business must be integrated into the innovation ecosystem to ensure sustainable growth [6]. v.l. makarov argues that linking small entrepreneurship with innovation is key to regional development. according to his research, the integration of various infrastructural components—such as transportation, communication, and information networks—directly influences the productivity and efficiency of small businesses [7]. in uzbekistan, several scholars have explored the significance of infrastructure in small business development. islam karimov, in his influential work yangi o‘zbekiston yo‘li (1997), identifies support for small business and private entrepreneurship as a core direction of economic reform. he emphasizes the need to develop financial, legal, and informational infrastructure to enable entrepreneurship [8]. b. khudoyberganov (2021), in his scholarly article, provides a detailed analysis of how innovation infrastructure—such as technoparks, business incubators, and innovation centers—enhances american journal of business management, economics and banking volume 38 july2025 p a g e | 75 www.americanjournal.org opportunities for small enterprises. he highlights the importance of adapting these infrastructure elements to the specific needs of local regions in uzbekistan [9]. t. khudoyorov (2022), in his research, examines how the integration of digital infrastructure increases the innovative capacity of small business. he proposes regionally tailored models for effective implementation of innovation infrastructure in a digitalized economy [10]. the reviewed literature shows that infrastructure plays a fundamental role in the innovative development of small business. while western scholars view infrastructure as the backbone of the innovation ecosystem, cis researchers emphasize its role in ensuring regional stability and growth. uzbek scholars focus on systematizing the elements of innovation infrastructure within the context of national economic reforms. research methodology the methodological foundation of this research is based on legal and regulatory documents related to the development of small business and private entrepreneurship. in particular, the decree no. pq-3697 of the president of the republic of uzbekistan dated may 5, 2018, titled "on additional measures to create conditions for the development of active entrepreneurship and innovative activity", serves as a key normative basis for the study. during the research process, the role of infrastructure in the innovative development of small business was analyzed using methodological approaches such as scientific reasoning, logical analysis, and a systematic approach. additionally, methods such as induction and deduction, statistical analysis, and comparative analysis were employed to justify the conditions and opportunities for innovative development in entrepreneurial activities. along with evaluating the current state, the research also involved a comparative study of advanced international experiences and explored possibilities for their adaptation to national conditions. as a result, practical and theoretical conclusions were developed to support the innovative development of small business entities based on infrastructure. analysis and results the structural approach plays a crucial role in the innovative development of small businesses and private entrepreneurship. innovation activity is not only about creating new products and services but also about successfully introducing them into the market. this process is closely tied to organizational structure, which facilitates the identification of promising ideas, the attraction of investment, and the expansion of market opportunities for new offerings. the success of innovation largely depends on aligning potential market demands with technological capabilities. this integration enables small business entities to efficiently manage all stages of commercialization of innovative products. today, the role of small businesses and private enterprises in socio-economic development is growing significantly. there is a pressing need to improve financing mechanisms and strengthen institutional support to boost their innovative capabilities. globally, countries such as the united states, japan, south korea, and germany are leaders in the innovation economy. according to the 2023 global innovation index, the u.s. remains the largest investor in research and development (r&d), allocating over $800 billion annually. germany also ranks among the top countries in terms of industrial innovation. american journal of business management, economics and banking volume 38 july2025 p a g e | 76 www.americanjournal.org experience shows that small businesses achieve considerable results in innovation. statistics reveal that approximately 80% of the most important inventions of the 20th century were developed by small enterprises. furthermore, as of 2022, firms with fewer than 500 employees generated 10 to 20 times more innovation per dollar of investment than large corporations. additionally, small firms tend to use funds allocated for r&d more efficiently. this allows them to rapidly develop and deliver market-responsive solutions, enhancing their competitive advantage. it is necessary to improve the knowledge and skills of entrepreneurs in the use of modern technologies. for this, it is important to improve educational programs and organize training for entrepreneurs. the development of innovative technologies in uzbekistan plays an important role in the diversification and development of the country's economy. the introduction of the role of the structure in innovation in small businesses creates the basis for increasing production efficiency and positively affecting product quality. also, state programs aimed at supporting small businesses are crucial in creating a favorable environment for innovative activity, including training, financing, and consulting programs. this further expands the possibilities of implementing innovations. the introduction of modern technologies into the activities of small business entities is one of the important tasks in today's global economy. for this, first of all, it is necessary to develop the digital literacy of entrepreneurs, their awareness of technological innovations and the skills of their implementation in practice. therefore, the organization of modern trainings, professional development programs, and innovative educational projects for entrepreneurs has become a pressing issue. an important role is also played by the state's support measures for small businesses the formation and stimulation of an innovative environment through concessional loans, tax benefits, subsidies, and funds to support startups. such approaches, along with increasing the number of small businesses operating on the basis of modern technologies, also increase their competitiveness. table 1 share of small businesses in total employment (by region), % regions/city 2020 y 2021 y 2022 y 2023 y 2024 y andijan 74,5 74,5 73,9 74,1 74,6 bukhara 74,2 74,2 74,1 74,8 75,1 jizzakh 82,1 80,7 80,2 80,1 80,5 kashkadarya 75,7 75,4 75,2 75,6 75,9 navoi 78,4 78,8 78,3 78,2 78,5 namangan 74,8 75 74,9 75,2 75,1 samarkand 51,1 51,1 51,1 51,4 51,6 surkhandarya 82,2 81,6 80,3 80,8 81 syrdarya 81,6 81,5 80,0 80,3 80,7 tashkent region 78,4 78 76,9 77,2 77,5 fergana 74,5 74,6 72,9 73,2 73,8 khorezm 78,1 72,2 77 77,4 77,1 tashkent city 78,4 78,5 78,5 78,5 78,9 source: compiled by the author. based on the table above, regional indicators of the share of small business in employment for the period 2020-2024 were analyzed. based on this analysis, the following main conclusions can be drawn: american journal of business management, economics and banking volume 38 july2025 p a g e | 77 www.americanjournal.org jizzakh, surkhandarya, and syrdarya regions in these regions, the share of employment in small businesses remains high. in 2024, they reached 79.1%, 78.2%, and 77.9%, respectively. in these regions, small business has become a leading driver of the economy. agriculture, handicrafts, and the service sector are actively developing. positive dynamics are also observed in the implementation of innovations. andijan, namangan, bukhara, and tashkent although the share of employment in small businesses in these regions is relatively high, a slight decline has been observed over the years. for example, in andijan, the indicator decreased from 75.4% in 2020 to 71.5% in 2024. this indicates the need for the widespread introduction of innovative technologies in these regions, the modernization of production capacities, and the attraction of young entrepreneurs. samarkand, fergana, and khorezm regions in these regions, the decline was most noticeable. in particular, in samarkand, the indicator of 55.0% in 2020 decreased to 51.4% in 2024. a similar situation is observed in fergana and khorezm. this situation may be related to the lack of support for small businesses, insufficient access to financial resources, or the weakness of innovative approaches. it is necessary to introduce modern innovations in these regions and improve the access of small entrepreneurs to loans. strengthening educational and training programs is required for small business entrepreneurs to effectively use modern technologies. also, based on these analyses, it is advisable to carry out reforms that ensure stability and growth, taking into account the specifics of each region. conclusions and proposals based on the above analysis, it is advisable to implement the following measures to increase the possibilities of using modern technologies in small businesses and maintain a stable level of employment: implementation of modular training programs aimed at studying modern technologies for entrepreneurs; development of a network of regional funds and incubators for financing innovative projects; provision of technological infrastructure and it services for small businesses on affordable and favorable terms; allocation of concessional loans to start-up entrepreneurs on the basis of state guarantees; development of a separate "small business development strategy" for each region, adaptation of these strategies to the real state of the region's economy; creation of innovative educational centers and technology parks within the framework of publicprivate partnership. in conclusion, the introduction of modern technologies in small businesses is not only a means of effective organization of production processes, but also an important factor in increasing competitiveness in the labor market, creating new jobs, and raising the standard of living of the population. therefore, as one of the priorities of state policy, it is necessary to further expand innovative approaches, scientific and educational support programs aimed at small businesses. references 1. o‘zbekiston respublikasi prezidentining «2022–2026-yillarga mo‘ljallangan yangi o‘zbekistonning taraqqiyot strategiyasi to‘g‘risida»gi farmoni. t.:”o‘zbekiston”, 2022-y. 2. o‘zbekiston respublikasi prezidenti sh.mirziyoyevning 2020 yil 29 dekabrdagi oliy majlisga american journal of business management, economics and banking volume 38 july2025 p a g e | 78 www.americanjournal.org murojaatnomasi, https://lex.uz/docs/-5280079 3. porter m. the competitive advantage of nations. new york: free press. 1990 4. schumpeter, j.a. capitalism, socialism and democracy. harper & brothers. 1942. 5. yunus m. banker to the poor: micro-lending and the battle against world poverty. publicaffairs. 2006 6. kleiner a.n. institutional economics and small business. moscow: nauka. 2008 7. makarov v.l. innovative development of regional economy. moscow: ekonomika. 2012 8. karimov i.a. yangi o‘zbekiston yo‘li [the path of new uzbekistan]. tashkent: uzbekistan. 1997 9. khudoyberganov b. “ways to develop inovation infrastructure for small business”. journal of economics and innovation, no. 3. 2021 10. khudoyorov t. “digital infrastructure and small business: new opportunities”. applied scientific economic research, no. 2. 2022. https://lex.uz/docs/-5280079 american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 4 www.americanjournal.org types, causes and consequences of unemployment madenova elmira nzamatdinovna phd, karakalpak state university named after berdakh umida kulmuratova student of the faculty of economics karakalpak state university named after berdakh email address: e-lmir-a78@mail.ru phone number (+998907351030) a b s t r a c t k e y w o r d s the article is devoted to a comprehensive analysis of the problem of unemployment, its causes, types, consequences and methods of public policy in this area. macroeconomic factors are considered, such as the decline in production and structural changes in the economy, as well as the individual characteristics of workers that affect their competitiveness in the labor market. particular attention is paid to the economic, social and personal consequences of unemployment. key areas of state employment policy are analyzed, including measures to stimulate the creation of new jobs, social support for the unemployed and activities employment services. the article may be useful to economists, labor market specialists, as well as anyone interested in employment issues unemployment, employment, labor market, public policy, consequences of unemployment, employment stimulation, social support, employment services. introduction in order to ensure the will of our people to build a free and prosperous, strong new uzbekistan, to create all opportunities for every citizen to develop their potential, to raise a healthy, educated and spiritually advanced generation, to build a strong economy that has become an important link in global production, as well as to guarantee justice, the rule of law, security and stability, the strategy “uzbeksitan-2030” has been approved, developed on the basis of the experience gained in the process of implementation of the strategy. about the state program for the implementation of the strategy “uzbekistan 2030” in the “year of support for youth and business”[1] to take into account that the strategy “uzbekistan 2030” reflects the following main ideas: 1. reduction of poverty in the country: reduction of poverty until 2026 by 2 times in relation to 2022, cardinal reduction until 2030. increasing the income of 4.5 million people at risk of falling below the poverty line. training of 500 thousand qualified specialists on the basis of social partnership. american journal of business management, economics and banking volume 30 november 2024 p a g e | 5 www.americanjournal.org 2. ensuring employment of the population by income-generating labor, improvement of the social insurance system: reducing the unemployment rate to 7 percent by ensuring stable and effective employment of ablebodied population, including youth and persons with disabilities. organization of payment of benefits for pregnancy and childbirth, temporary disability, dismissal from work in cases of liquidation of the legal entity employer and lack of funds for payments at the liquidated enterprise, insurance payments due to accidents at work through the system of guaranteed social insurance. 3.training citizens in professions at the expense of the state, developing their professional skills and qualifications in the use of modern techniques and technologies: training of 2 million citizens in professions, business skills and foreign languages. upgrading the qualifications of 1.6 thousand teachers of vocational training centers based on international standards. bringing the share of the private sector in vocational training to 30 percent [1]. unemployment is a situation when a person who is able and willing to work cannot find a suitable job. it is an important economic and social phenomenon that has a significant impact on society. economically, high unemployment leads to lower productivity, lower tax revenues and higher government spending on social benefits. socially, unemployment leads to an increase in poverty, social tension, crime and deterioration of the psychological state of the population. thus, the problem of unemployment requires close attention of the state and society, as it affects key aspects of economic development and social well-being. main part: the problem of unemployment is relevant in many countries of the world. according to the international labor organization, in 2023, the unemployment rate in the world was about 6.1% of the total labor force, which corresponds to about 207 million unemployed. at the same time, the highest unemployment rate is observed in some developing countries in africa and latin america, where it reaches 20-25%. in russia, the unemployment rate is also a significant problem. according to fsss, in 2023 the unemployment rate in the country amounted to about 4.9%, which corresponds to about 3.7 million people. the highest unemployment rate is traditionally recorded in the regions of the north caucasus, as well as in some depressed industrial centers. solving the unemployment problem remains one of the key tasks of the socio-economic policy of the russian state. the key economic factors causing unemployment are production decline, structural changes in the economy and technological changes. a decline in production caused by economic crises or recession leads to downsizing and closure of enterprises, which directly leads to an increase in unemployment. structural changes in the economy, such as the shift from manufacturing to services or digitalization, can also cause structural unemployment, when skills and occupations that were previously in demand become redundant. finally, the introduction of new technologies, automation and robotization of production processes push people out of the labor market, leading to technological unemployment. all these economic factors require the state and employers to take timely measures for retraining, professional development and creation of new jobs in order to mitigate the negative impact of such transformations on employment. [1] american journal of business management, economics and banking volume 30 november 2024 p a g e | 6 www.americanjournal.org in addition to economic causes, unemployment also has serious social preconditions. one of the key social factors is demographic change, such as population ageing, an increase in the share of young people in the labor market, or an increase in migration flows. for example, an influx of migrants can intensify competition for jobs and increase unemployment among the local population. ineffective public employment policies can also contribute to unemployment. insufficient investment in job creation, underdeveloped system of professional training and retraining, weak support for the development of small and medium-sized businesses all this aggravates the unemployment situation. thus, in order to solve this problem, a comprehensive approach is needed, taking into account not only economic but also social aspects. only coordinated actions of the state, employers and society as a whole can contribute to the reduction of unemployment. in addition to macroeconomic and social factors, the unemployment problem is also influenced by the individual characteristics of job seekers themselves. one of such key factors is low qualification or lack of necessary professional skills. in the context of rapid technological changes and structural shifts in the economy, those workers whose competencies are outdated or do not meet the current needs of the labor market become less competitive in the market. lack of work experience also significantly hampers employment, especially for young professionals without sufficient practice. in addition, an individual's health status can be a serious barrier to finding a job, especially for those with disabilities or chronic illnesses. overcoming these individual barriers requires both personal efforts to improve skills and gain experience and active support from public employment services and employers. [1] unemployment takes various forms, each of which has its own characteristics and causes of occurrence. cyclical unemployment is associated with a general decline in business activity in the economy during economic crises and recessions. it is caused by a reduction in demand for goods and services, forcing businesses to lay off workers. cyclical unemployment is massive and affects almost all sectors of the economy. structural unemployment is caused by changes in the structure of the economy and the labor market. it arises when there is a mismatch between the skills and qualifications of workers and the needs of employers. structural shifts, such as the automation of production or the shift from industry to the service sector, make a number of professions unclaimed. frictional unemployment is related to the natural process of job search and occurs when workers voluntarily change jobs or enter the labor market for the first time. it is temporary unemployment while an individual finds a suitable vacancy. seasonal unemployment is caused by the cyclical nature of production activity in certain industries such as agriculture, construction, and tourism. during periods of seasonal decline in these industries, some workers temporarily lose their jobs. a comprehensive solution to the problem of unemployment should take into account the specifics of each type, requiring the state to apply different employment policy measures. [2] unemployment has a serious negative impact on both the economy, social sphere and the well-being of individuals. in the economic sphere, a high level of unemployment leads to a decrease in the gross domestic product (gdp) of a country. working citizens stop producing added value, which reduces the total output of the economy. in addition, the unemployed stop paying taxes, which reduces tax revenues to the budget. at the same time, the state has to incur additional expenses on social payments to the unemployed, benefits and programs to support them, which worsens the state finances. american journal of business management, economics and banking volume 30 november 2024 p a g e | 7 www.americanjournal.org at the social level, unemployment leads to an increase in poverty, because depriving a person of a source of income inevitably leads to a decline in his or her standard of living. this, in turn, contributes to the aggravation of social tensions in society, an increase in crime, family conflicts and other negative social phenomena. [3] on a personal level, unemployment causes serious damage to people's psychological and emotional well-being. the loss of a job and source of income, the feeling of redundancy and social isolation often cause depression, stress, loss of self-esteem and motivation in the unemployed. these consequences make it difficult for a person to find further employment. thus, unemployment is a complex problem that requires a systematic approach to its solution both at the macroeconomic, social and individual levels. results and discussion: state employment policy plays a key role in overcoming the problem of unemployment. the main directions of this policy are measures to stimulate employment, social support for the unemployed, and the activities of public employment services. measures to stimulate employment include the creation of new jobs, including through public investment in infrastructure projects and innovative production. supporting the development of small and medium-sized businesses, which are a key source of new vacancies, also plays an important role. in addition, the state should finance programs of retraining and advanced training of workers to help them adapt to structural changes in the labor market. [4] to mitigate the effects of unemployment, the state implements measures of social support for the unemployed. this is, first of all, the payment of unemployment benefits, which allow to maintain the level of income of citizens who are unemployed. there are also programs of professional retraining and advanced training that help the unemployed to find a new job. public employment services play a key role in facilitating employment. they mediate between employers and job seekers, helping them to find each other. in addition, employment services provide consulting and information support to the unemployed, as well as implement various programs of active employment policy [5]. the integrated application of these employment policy measures allows the state to effectively counteract the growth of unemployment and promote the employment of citizens. conclusion: unemployment is one of the most acute socio-economic problems of modern society. it has many causes, including production decline, structural shifts in the economy, technological changes, demographic shifts, as well as individual factors related to the qualifications and health of workers. [5] an effective solution to the problem of unemployment requires a comprehensive approach that includes measures to stimulate employment, social support for the unemployed, as well as the active work of public employment services. creation of new jobs, support for small business, retraining of workers, payment of benefits and implementation of professional retraining programs all these should become the main elements of state policy in the field of employment. only balanced and coordinated actions at the macroeconomic, social and individual levels will make it possible to effectively overcome the problem of unemployment and ensure a high level of employment. american journal of business management, economics and banking volume 30 november 2024 p a g e | 8 www.americanjournal.org references 1. decree of the president of the republic of uzbekistan “strategiya-2030” no. up-37 of february 21, 2024 . 2. raizberg b.a. modern economic dictionary. 6th ed., revision and addendum m.: infra-m, 2019. 512 с. this dictionary contains definitions and explanations of economic terms related to the problem of unemployment. 3. agapova t.a., s.f. seregina macroeconomics. 11th ed., revised and additional m.: moscow financial and industrial university “synergy”, 2020. 560 с. 4. bobkov v.n., odintsova e.v. unemployment and the labor market in russia. monograph. m.: infra-m, 2018. 352 с. 5. labor economics: textbook for academic bachelor's degree / edited by r.p. kolosova, g.g. melikyan. 3rd ed., revision and additions m.: yurait publishing house, 2019. 385 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 60 www.americanjournal.org innovative methods of financing in agriculture: crowdfunding alikulov mekhmonali salakhiddin ugli phd, associate professor of tashkent state university of economics orcid: 0000-0001-5981-885x email: mehmonali1992@gmail.com a b s t r a c t k e y w o r d s the article studies the opinions of leading world scientists on innovative methods of financing agriculture: crowdfunding, discusses in detail the main features and types of crowdfunding platforms and mechanisms in the agricultural sector, analyzes platforms designed to support agricultural projects around the world, conducts a swot analysis of crowdfunding platforms designed to support agricultural projects, and develops substantiated conclusions and proposals for the introduction of crowdfunding in the farming sector in uzbekistan. agriculture, innovative financing, crowdfunding, crowdfunding in agriculture, agro finance, online investments, crowdfunding, farming projects, electronic platform, social fundraising. introduction agriculture is one of the sectors of strategic importance in the economies of many countries worldwide. it plays an important role not only in providing food for the population but also in ensuring economic stability and providing employment for a large part of the population. however, traditional financing tools in the sector are often insufficient. sources such as bank loans and state subsidies are not always able to meet the needs of farmers and agricultural enterprises. in such conditions, innovative financing methods, including crowdfunding, appear to be an important solution in the agricultural sector. the word crowdfunding itself is formed from the words "crowd" (public) and "funding" (financing), and its essence is to attract funds from the public for a project or idea. in this process, many people contribute small amounts of money to the project through special internet platforms and help it to be implemented. crowdfunding not only attracts financial resources but also plays a significant role in the implementation of new ideas and innovations. this mechanism offers new solutions as an alternative to traditional financing. financing problems in the agricultural sector are becoming increasingly serious. a number of farmers are still deprived of the opportunity to expand their businesses due to a lack of capital. in addition, factors such as natural disasters, declining yields, and volatility of market prices create additional difficulties for farmers. in such a situation, new financing methods such as crowdfunding can not only alleviate existing problems but also further develop the agricultural sector. american journal of business management, economics and banking volume 32 january 2025 p a g e | 61 www.americanjournal.org literature review in the process of analyzing the literature on the topic, several leading economists and experts from around the world conducted scientific research on innovative methods of financing agriculture: crowdfunding. among them, b. murodov's article "crowdfunding as a modern form of alternative financing" analyzes the essence, advantages, and stages of crowdfunding. the author studies the alternative financing markets in america and asia and emphasizes the role of crowdfunding in financing various projects[1]. yarov akbarali ibodullaevich analyzed the theoretical foundations of crowdfunding and its application in the experience of foreign countries in his article "alternative forms of cluster financing". he noted that crowdfunding is an effective way of financing clusters, which serves as an additional financial source for small and medium-sized businesses [2]. kamolov sh.u. in his research on "innovative methods of financing agriculture" discusses modern methods and innovative mechanisms of financing. in his opinion, venture capital, crowdfunding, and public-private partnerships are of great importance in financing agriculture. these methods help to introduce new investments and innovations in the agricultural sector[3]. research methodology innovative methods of financing in agriculture: analysis of research conducted by world scientists on crowdfunding, collection of all information on the topic, comparison, and logical thinking were used in economic research methods. analysis and discussion of results. the importance of crowdfunding is very wide-ranging. with its help, farmers can attract public attention to their projects, gain trust, and increase economic opportunities. at the same time, crowdfunding allows farmers to sell their products, be competitive in the market, and create a new customer base. today, crowdfunding platforms and mechanisms are becoming increasingly popular on a global scale, creating opportunities for innovations in agriculture. crowdfunding in the agricultural sector is distinguished by the following main features: 1. supporting innovative projects. 2. financing environmentally friendly ideas. 3. increasing public participation in the sector. 4. creating connections between farmers and consumers. the main feature of crowdfunding is that it speeds up and simplifies the process of raising funds. compared to traditional financing, through crowdfunding, the public has the opportunity to support new projects in agriculture. for example, if a farmer plans to start organic production in his area, he can raise the necessary funds through crowdfunding platforms and implement this idea. american journal of business management, economics and banking volume 32 january 2025 p a g e | 62 www.americanjournal.org fig. 1. types of crowdfunding another important aspect of crowdfunding for agriculture is its social significance. public participation in such projects is seen as a step towards finding solutions to global problems in the sector. for example, environmental projects can be financed through crowdfunding on such topics as climate change, water scarcity, and soil erosion. when such projects are funded by the public, their positive impact can be further expanded. figure 2. crowdfunding market [4] donationbased crowdfunding in this round, members of the public contribute money to the project as a gift. contributors are offered special thank-you letters, gifts or small incentives appropriate for them. reward-based crowdfunding people who contributed money to the project will receive certain rewards according to the set amount. for example, a farmer can offer the opportunity to buy his products in advance. equity-based crowdfunding investors who spend money will have a certain share or shares of the project. in this way, investors will have the opportunity to make financial profit if the project is successful. debt-based crowdfunding the platform collects funds as loans and returns them to investors within a set period of time after the project is completed. this usually includes additional interest. socially useful crowdfunding this type of fundraising is mainly used to finance projects of social importance. such projects include solving environmental problems, developing infrastructure in rural areas, and others. t y p es o f cr o w d fu n d in g american journal of business management, economics and banking volume 32 january 2025 p a g e | 63 www.americanjournal.org the size of the global crowdfunding market will reach 16.5 billion us dollars in 2023. this showed a slight increase compared to previous years. looking ahead, the publisher expects the market to reach 42.9 billion us dollars by 2032 and show a cagr of 11.26 percent in 2023-2032. growing technological innovations in crowdfunding platforms, increasing demand for crowdfunding campaigns to better influence future projects, and increasing number of startup projects are the main factors driving the market [4]. increasing crowdfunding activity on social media platforms to increase the demand and availability of future projects. market expansion is a key factor. social media platforms such as facebook, twitter, reddit, instagram, and linkedin are gaining more popularity for crowdfunding activities to collect donations from investors. at the same time, growing technological innovations in crowdfunding platforms using artificial intelligence (ai) and machine learning technologies are the main factors contributing to market growth. one of the largest crowdfunding platforms, kickstarter, launched more than 600,000 crowdfunding platforms [5]. table 1 platforms for supporting agricultural projects around the world platform name region main directions briefly description kickstarter global innovative ideas, new projects innovative projects support for in the world the most big from platforms one of them. farmers product or services for money their gatherings possible. indiegogo global social, environmental, rural farm social to the point owner and ecological projects supports. farmers products in advance sale or financing as a platform for uses . farmraise usa farmers for financial help us farmers state grants and financing sources looking for help gives. harvest funders global village farm investments village farm to projects specialized. investors farmers with to tie directed. agfunder global village farm and agricultural technologies village farm startups and technologies supports. animal husbandry, product work to release and village to the farm specialized. thriveagric africa farmers support, export markets with to tie african farmers financial help and market opportunities to create focused platform. wefunder global village farm and small business small businesses for investment collection the opportunity creates. village farm projects public by is supported. kiva global microcredits, social support developing in countries small to farmers microcredits to give focused platform. lendwithcare africa and asia microcredit, small farmers support small farmers financing for microcredits offer will do. barnraiser usa organic products, healthy meal organic products work to release and healthy to eat supports. farmers this on the platform products for money their gatherings possible. important information about each platform is presented systematically in the table. each type has its own place and importance. for example, gift and reward-based crowdfunding helps farmers implement short-term projects, while equity-based crowdfunding is designed to attract large amounts of american journal of business management, economics and banking volume 32 january 2025 p a g e | 64 www.americanjournal.org investment. debt-based crowdfunding is considered a medium-term financing solution. also, socially useful crowdfunding is important in attracting public attention to social and environmental issues. swot analysis (strengths, weaknesses, opportunities and threats) helps to gain a deeper understanding of the activities of crowdfunding platforms aimed at agricultural projects: table 2 swot analysis of crowdfunding platforms for supporting agricultural projects strengths weaknesses 1. the possibility of addressing the public on a large scale via the internet. 2. creating direct contact between investors and farmers. 3. low costs and interest-free borrowing. 4. a convenient mechanism for financing new technologies and innovations. 1. internet access may be limited for all farmers. 2. fundraising may be difficult due to lack of trust in platforms. 3. legal restrictions in place. 4. competitive platform selection may be difficult for farmers. opportunities threats 1. directing agricultural products to export and entering new markets. 2. government support and creation of a special legal framework. 3. attracting public attention by supporting ecological projects. 4. development of new crowdfunding technologies and their implementation. 1. volatility of market prices can increase the risk of investments. 2. areas with limited access to the internet. 3. risk of project failure due to natural disasters and climate change. 4. global competition for platforms. as the swot analysis shows, although crowdfunding platforms for agricultural projects have many advantages, their weaknesses and threats should be taken into account for their effectiveness. the success of the platforms depends on such factors as establishing reliable connections between farmers and investors, improving the legal framework and expanding access to the internet. the use of swot analysis makes it possible to make the operation of crowdfunding platforms for agricultural projects more efficient. its main results are as follows: effectiveness of planning: based on swot analysis, farmers and platform operators take specific measures to expand strengths and reduce weaknesses in their activities. for example, special offline mechanisms will be created for farmers in areas with limited access to the internet. improving targeting: platforms can focus on projects of environmental and social importance, with a deeper analysis of opportunities. this will help increase public interest. increasing competitiveness: swot analysis allows platforms to introduce innovative technologies to gain advantages over their competitors. risk management: threats identified during the analysis, for example, market price volatility or natural disasters, allow the development of a risk management strategy in projects. the use of swot analysis plays an important role in increasing the effectiveness of crowdfunding platforms for supporting agricultural projects. it helps to establish reliable connections between farmers and investors, and promotes innovation and sustainable development in the field of agriculture. in uzbekistan, the issue of introducing crowdfunding in the field of agriculture remains controversial. although the country is rich in agricultural resources, there are many problems related to financing. american journal of business management, economics and banking volume 32 january 2025 p a g e | 65 www.americanjournal.org by organizing crowdfunding platforms and ensuring their effective operation, it is possible to develop innovations in the field and create new opportunities. it is appropriate to implement some proposals for the introduction of crowdfunding in the field of agriculture in uzbekistan: 1. strengthening cooperation between interested parties to introduce crowdfunding, it is necessary to strengthen mutual cooperation between farmers, investors and government bodies. it is important for the government to create a legal framework for supporting and regulating crowdfunding platforms in the field of agriculture. 2. development of crowdfunding platforms it is necessary to create and develop crowdfunding platforms, through which farmers can introduce their projects and connect with investors. in order to ensure the operation of these platforms and increase their efficiency, it is necessary to use modern information technologies. 3. increasing investment attractiveness to increase the investment attractiveness of farming projects, it is necessary to pay attention to the use of advanced agricultural technologies, product processing and creation of the added value chain. this will help farmers to increase their income and finance them through crowdfunding. 4. introduction of trainings and local training programs to make crowdfunding successful, it is necessary to organize trainings and training programs for farmers and entrepreneurs. these programs should provide knowledge on crowdfunding platforms, business planning and financing issues. 5. government support the government should introduce special programs aimed at supporting farming projects and financing them through crowdfunding. these proposals will help to successfully introduce agricultural crowdfunding in uzbekistan. also, crowdfunding can help reduce unemployment in rural areas. when farmers expand their businesses, new jobs are created and regional development is contributed to. therefore, crowdfunding is effective not only in economic, but also in social spheres. in conclusion, the introduction of crowdfunding in the field of agriculture and its popularization can greatly contribute to the development of the sector. this mechanism plays an important role in solving financing problems in agriculture, supporting innovations and creating new prospects in the field. effective use of this opportunity is one of the most important tasks for uzbekistan. references: 1. b. morodov. "crowdfunding as a modern form of counter-financing", "moliya" scientific journal, 2019, issue 5, page 5 2. a. i. yarov. "opposite forms of financing clusters" scientific journal "finance", 2023, issue 4, page 130 3. kamolov sh. "innovative methods of financing agriculture" tashkent, 2021. 4. https://www.researchandmarkets.com/report/crowdfunding?srsltid=afmbooqbp4qrhxurjhlr ggaugq3n_ghdalhx0v4x68gcoxjevvnibxzq 5. https://www.statista.com/statistics/1078273/global-crowdfunding-market -size/ https://www.statista.com/statistics/1078273/global-crowdfunding-market american journal of business management, economics and banking issn (e): 2832-8078 volume 31, | december 2024 p a g e | 96 www.americanjournal.org the importance of profit in economics and its main aspects f. a. khakimov teacher of termez state university of engineering and agrotechnology a b s t r a c t k e y w o r d s the article describes the economic essence of profit and the characteristics of the initial theoretical framework of its formation through the views of the manifestations of antiquity, as well as some economic schools, and the conclusions as a result of which are presented. introduction profit is a fundamental concept in economics, serving as a key indicator of the health and efficiency of an economy. it plays a critical role in various aspects of economic theory and practice. here are some of the main aspects highlighting the importance of profit in economics: incentive for production and innovation. motivation for entrepreneurs: profit serves as a primary motivator for entrepreneurs and businesses to invest in new ventures, develop new products, and improve existing services. the pursuit of profit encourages companies to innovate, leading to technological advancements and improved efficiencies. resource allocation. market signals: profits signal where resources are most valued in the economy. high profits in a particular industry attract more investment, while low or negative profits can indicate a need for reallocation of resources. profit maximization leads firms to operate efficiently, minimizing costs and maximizing output, which contributes to overall economic productivity. economic growth. investment: profits are often reinvested into the business or the economy, facilitating expansion, job creation, and overall economic growth. higher profits can lead to increased savings and investment, which are crucial for capital formation and long-term economic development. risk and reward. compensation for risk: profit serves as compensation for the risks taken by entrepreneurs and investors. the potential for profit encourages individuals to take on business risks. in competitive markets, profits can attract new entrants, leading to increased competition, which can benefit consumers through lower prices and better products. distribution of wealth. income generation: profits contribute to income generation for business owners, shareholders, and employees, influencing wealth distribution within society. companies with significant profits may engage in corporate social responsibility initiatives, redistributing some of their wealth back into communities. the perception of the content of profit as a derivative arises from its interpretation as a simple and complex economic category. profit is the continuous main margin between the periods of activity of american journal of business management, economics and banking volume 31 december 2024 p a g e | 97 www.americanjournal.org business entities in market conditions. this aspect itself creates a fundamental factor in the activities of business entities. although the theory of profit in the system of economic theories was studied mainly in connection with entrepreneurial activity, the formation of profit has different views. economists and specialists were initially more interested in its formation and its use. in the conditions of modern economic development, they are more interested not in the nature of profit, but in the optimal directions of its formation, quantity, quality. discussion and results also, the initial economic views on the formation of profit and its essence began from the time of the ancient greek scientists ksenofont, plato, they did not systematically study the exact profit in their works. in particular, ksenofont emphasizes that with the help of money, commodity circulation can be carried out and invented by people to accumulate wealth. he opposed the accumulation of money in the style of wealth, especially sharply criticized the judiciary. plato thinks about the price, emphasizing that it should be managed by the state and that as a result of it will be profitable. in the development of economic thought, aristotle systematized the views learned in his views, concerted on the basis of the criteria for the concepts of economy and xrematistics, and contributed to the gradual formation of thoughts about profit. ", ...their application as a means of accumulating profits, that is, as the capital of the judiciary, refers to the sphere of khrematistics.” [1]. from his conception of the economy and khrematistics, one can conclude that the formation of profit is precisely related to the activity of khrematistics. the fact that khrematistics is the emergence of a state of stability through trade, emphasizes that this is possession of property, wealth. "in the art of raising wealth, there will never be a limit in achieving the goal, but here the goal is to have wealth and money.” [2]. also, the fact that trading profits have been increased explains that equity capital is an unhealthy way of owning money. aristotle points out that in the circulation of ordinary goods and in the circulation of money as capital, capital is increased as a result of the movement of money. in the economic views of ancient greek scientists, it can be seen that the concept of profit stihiyali trade is widely studied. hence the meaning is that the ancient greek scientists interpreted the wealth accumulated in society and the property owned, as well as the money invested, as a profit. these views, however, led to the development of a scientifically based idea that was widely studied by economist scientists operating in the middle ages. the initial theoretical conception of the market economy from the point of view of historical economic views-the early stages of the development of the principles of the theory of profit are associated with mercantilistic economic analysis. mercantilists have also revealed the content of a number of economic categories, together with the contribution to the theory of international trade in a large scale, undoubtedly. mercantilists t.mann, d.yum, j.in the theoretical approaches of kolbers, the study of the sources of wealth profit formation took the main place. mercantilists focused widely on domestic and foreign trade activities, initially emphasizing the emergence of profit turnover. but they preferred foreign trade in the formation of profit. "in their opinion, the main source of wealth increase is foreign trade. "the usual means of multiplying our wealth and our money, emphasizes mann,is foreign trade.” [3] manifestations of primary and secondary mercantilism are the factors of the wide formation of profits, the factors of which are the setting of high prices for quality, the restriction of imports, the exclusion american journal of business management, economics and banking volume 31 december 2024 p a g e | 98 www.americanjournal.org of gold and silver from the commodity, the seizure of markets by means of cheap goods, the permission to import goods under the conditions of an active trade balance, for acceptable trade they noted that the exchange process of course is the starting point for the emergence of profits, after which it is possible to master it. but it is necessary not to confuse the question of the source of the emergence of profit with the question of at what stage it will be assimilated. mercantilists argued that the profit will be assimilated at the stage of turnover, moving away from the nature and real source of profit, they did not know that they will appear in the process of generating profit. accordingly, according to their scientific views, foreign trade supported the active intervention of the state in order to ensure the flow of profits.to conclude from the above, it is believed that mercantilists focused mainly on ensuring the growth of the economy, increasing national wealth as a result of increasing profits through foreign trade. the development of the theory of profit is a manifestation of the economic school of physiocrats – f.gene, j.it is also associated with the activity of thurgeons.in their opinion, the basis of the formation and functioning of the economy determines the natural order. physiocrats basically described the profit as a result of a special production force-the earth. they confuse the quantitative growth of agricultural production with the growth of value. therefore, they mistakenly attributed the profit in the field of production to agriculture, and in essence replaced the growth in consumer value with the growth in value. according to the concept of the manifestations of the school of physiocrats, it is noted that the economic policy of the state is the need to be implemented through agricultural relations, and the only source in the formation of profit is land. f the formation of profits.kene tries to understandtirishga through the concept of" pure product". with the participation of nature, the labor of the landowner emphasizes the creation of profit -"pure product". he notes that the formed profit is a reward for the expenses that landowners have previously made to the land. in industry and sado, labor is not productive, for example, in trade, labor changes the form of matter, in trade, the movement of goods occurs, the most basic of which is the prohibition of the formation of new matter. in industry, "pure product" is not formed, the fact that the value of industrial output is equal to the cost of production, they receive profit in the form of wages of employees. they see trading profits as a result of calculation and deception. therefore, the formation of profit is again evidenced by the point of view of the agricultural system: "profit is not a confidence in nature, it is similar to a percentage, and its appearance is"derived" from the rent of land. [4] the first representatives of the classical political economy school a.smith and d.ricardos seriously studied the essence of profit. initially, the study of profit was extensively studied in industrial production and then in the areas of research kengaytirib non-manufacturing. a. smith expressed the profit as an economic category in terms of labor value theory. he studied the properties associated with the formation of profit on the basis of the creation of value by labor.therefore, not according to the theory of production costs, but together with the determination of the value of tokens through labor, a. smith formed the economic category of value as a sum of revenues. the main features of the formation of such a profit were based on further research, which made a huge contribution to the development of the theory of profit. conclusion when considering the economic essence of profit, we considered it important to note its following characteristics from a modern economic point of view: american journal of business management, economics and banking volume 31 december 2024 p a g e | 99 www.americanjournal.org profit represents the form of profit taking of an entrepreneur engaged in a specific activity.this is a simple form of expression of benefit, which does not fully reveal its meaning. the results of activities in some areas of the negaki will not be related to profit making. profit is a form of income of an entrepreneur, and a profit is a capital that is put on a commercial with the aim of achieving success.the negaki profit category is associated with the category of capitalthe main factor of production. references 1. ядгаров я.с. история экономических учений: учебник. — 4-е изд., перераб. и доп. — м.: инфра-м, 2009. — с.54 2. бартенев с. а. история экономических учений: учебник22е изд., перераб. и доп. м:магистр инфра-м, 2013. — с.37 3. бартенев с. а. история экономических учений : учебник.22е изд., перераб. и доп. — м. : магистр : инфраа-м, 2013. — с.59 4. бартенев с. а. история экономических учений : учебник / 22е изд., перераб. и доп. — м. : магистр : инфраа-м, 2013. — с.68 american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 42 www.americanjournal.org an empirical study on the adventure tourism concept and local tourist satisfaction tilovmurodov dostonbek lecturer, alfraganus university department of international tourism management email.d.tilovmurodov@afu.uz a b s t r a c t k e y w o r d s the concept of “adventure tourism” has been developing fast since its inception attracting the attention of researchers and scholars. indeed, adventure tourism has become increasingly popular among travelers who enjoy physical activities. adventure tourism is regarded as an economic asset in terms of infrastructure development, with advantages to local communities and many other areas of the economy. adventure tourism activities directly benefit the local economy by building ties and boosting locals’ living standards. the objective of this research is to conduct an empirical study on adventure tourism concept and local tourist satisfaction in uzbekistan. the study highlighted certain recommendations for this occasion. adventure tourism, tourism concept, local tourist, tourism market, travel motivation, tourist satisfaction. introduction adventure tourism has grown in most of the locations throughout the world, some of the most no-table growth in recent years has been experienced in developing countries as well. matter fact, the adventure tourism market size has grown exponentially in recent years. it will grow from $292.68 billion in 2023 to $351.57 billion in 2024 at a compound annual growth rate (cagr) of 20.1%. the adventure tourism market size is expected to see exponential growth in the next few years. it will grow to $739.56 billion in 2028 at a compound annual growth rate (cagr) of 20.4% 1. this is mainly due to the fact that many visitors desire to experience the outdoors, to engage in activities that involve action and excitement, and to be physically challenged rather than passive sightseers (giddy, 2018). many people are looking for one-of-a-kind experiences, frequently in isolated regions. this style of travel experience typically entails traveling in smaller groups and frequently encountering various forms of danger (patterson, 2018). previously, the travel and tourism business were overlooked and not seen as a priority in the economy. however, given uzbekistan’s geographical area and tourist resources, it has the potential to become a high-earning and significant contribution to the country's overall economic performance. this state of 1 adventure tourism trade association (atta) statistical information – 2024 american journal of business management, economics and banking volume 33 february 2025 p a g e | 43 www.americanjournal.org neglect seems to be gradually changing. uzbekistan provides beautiful vistas and sweeping landscapes. the location has potentials for tourism because of natural water bodies such as tiny and large lakes with turquoise color tinges, the tallest mountain ranges, reservoirs, hot radon springs, jagged snow peaks with cliffs, and waterfalls. throughout the year, the temperature is moderate, if not constant. uzbekistan has a country’s diverse tourist resources, which includes a distinctive landscape and natural attractions. bioclimatic conditions also enable travelers to actively participate in wellness and sports tourism, particularly during the winter. indeed, tourist flows rapidly growing in the country, according to the statistics agency, a total of 8.2 million foreign citizens visited uzbekistan for tourist purposes in 20242. uzbekistan’s historical and cultural legacy, which represents the region’s lengthy history, is principally related with the history of the great silk road (fergana-tashkent-samarkand-bukharaurgench-khiva). uzbekistan is geographical area where tourists are mainly interested in visiting cultural and historical sites, which are largely concentrated in samarkand, bukhara, khiva, and tashkent. as a result, they will spend less time in uzbekistan than those who participate in a variety of other tourism activities. however, if the government wants tourists to stay longer and to promote return visits to discover locations more than once, they must promote other types of tourism, such as adventure tourism. therefore, main aim of this research the objective of this research is to conduct an empirical study on adventure tourism concept and local tourist satisfaction in uzbekistan. literature review since the 1980s, motivation has been a major focus of the study of adventure tourism (rantala, 2016). the traditional debate has been between ewert’s (1989) assertions that the idea of risk-taking is the primary driving force behind adventure travel activities and his claims that performance in adventure travel is correlated with skill level (ewert, 1987; ewert and hollenhorst, 1994) and linked to the achievement of more ethereal, self-imposed personal goals (ewert, 1989). in contrast, walle (1997) contends that the pursuit of insight is a primary driver for engaging in outdoor activities, and that achieving personal self-actualization through such activities does not involve taking risks but rather results from doing so. as a result, an adventurer finds fulfillment in the process of gaining such insight. actual numbers, however, supports the danger argument. weber (2018) found data to prove that extreme sports cause fatal or serious injuries by comparing registration data from germany, austria, switzerland, finland, slovenia, belgium, luxembourg, and the netherlands. the most severe injuries occurred in airborne sports, then climbing, skating, and contact sports. a high percentage of spinal injuries in climbing accidents and aerial activities was caused by very high falls. mei-dan and carmont’s (2017) detailed an analysis of the danger and catastrophes associated with adventure and extreme sports. gyimothy and mykletun (2017) demonstrated how meta-motivations shift during adventure activities. para-telic motivations and playful moods predominate for the majority of the time, but shifts to telic motivations happen in response to threats to the participants’ well-being and safety when the circumstances call for it. they come to the conclusion that adventure travel was primarily motivated by risk, insight seeking, and play. according to gyimothy and mykletun (2017, p. 18), “adult tour” in adventurous pursuits corresponds with risk and the management of hazards to achieve an optimal balance between anxiety and boredom. 2 statistics agency under the president of the republic of uzbekistan 2025 american journal of business management, economics and banking volume 33 february 2025 p a g e | 44 www.americanjournal.org at least 14 different kinds of motivation for adventure activities were discovered by buckley (2012) after searching a total of 50 papers on the topic. these motives were grouped by buckley into three broad categories: 1) internal activity; 2) internal/external location in nature; 3) social position (external). the idea that travelers’ behaviors reflect changing motivational patterns during their travel. some of other studies conducted a motivational study of pleasure vacationers. there are seven conceptualized push and socio-psychological motivational factors: escape from a perceived mundane environment; exploration and evaluation of self; relaxation; prestige; regression; enhancement of relationships; facilitation of social interaction. there are still two elements that were partially regarded as draw factors: novelty and education. these elements are crucial in identifying what motivates people to travel to far-off places and how they affect travelers’ decision-making processes. by boosting pull factors such as better rates, improved service quality, and solid infrastructure, planners may further augment and enhance destination offers, as outlined. the referenced motivational theory gives marketers a better understanding of the aspects of the location that is significant to tourists choosing a destination. destination planners must be aware of how they must raise their service standards to draw visitors since quality of service is seen to be a factor driving tourists to travel. additionally, it’s important to understand each visitor’s unique reasons since, as segment the tourism market more precisely. this makes it possible for destination marketers to use their resources more wisely. some of the most popular incentive theories in tourist research are summarized in table 1. table-1. tourist motivational concept and theories3 author (year) theory name contribution cohen (1972) types of tourists tourists are classified based on their travel behaviors and groups them as 1) organized mass tourists, 2) individual mass tourists, 3) explorers 4) drifters dann (1977) push and pull theory of tourist motivation developed a theoretical foundation on the ideas of anomie and eco-enhancement. explained that the anomie component is the urge to overcome emotions of loneliness, whereas eco-enhancement results from individual wants. crompton (1979) sociopsychological motivations to travel described two cultural motivations, seven sociopsychological motivations, and a total of nine motivations for people to travel. iso-ahola (1982) social psychology model of tourism argued that motivations for personal and interpersonal escape and search drive travel and leisure based on push and pull effects. combined the two primary components (escape and reward) according on the scenario and the objectives of the visitors 3 author work american journal of business management, economics and banking volume 33 february 2025 p a g e | 45 www.americanjournal.org adventure tourism concept the core of adventure, according to beard (2019), includes a number of significant and interconnected elements, including uncertain outcomes, danger and risk, challenge, anticipated rewards, novelty, stimulation and excitement, escapism and separation, exploration and discovery, absorption and focus, as well as contrasting emotions. uncertainty was highlighted by carpenter and priest (1989) as a distinctive aspect of the adventure experience paradigm, highlighting its key role within adventure activities. while an adventure is extremely possible if all of these components are present, it will not be one if any of them are present alone. the elements are compatible with “rapid adventure” (varley and semple, 2017). adventure tourism is defined by the adventure travel trade association (atta) as, “a trip (traveling outside of a person’s normal environment for more than 24 hours and not more than one consecutive year) that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion” (adventure tourism development index, 2016). a total of 34 different sorts of activities are included in the study, ranging from physically taxing outdoor pursuits in the wild to calling on friends and family, seeing a historical location, and taking part in volunteer tourism programs. according to this description, adventure tourism is developing faster than both overall tourist growth and cruise tourism, another rapidly rising industry. its data includes iceland, germany, new zealand, norway, switzerland, canada, australia, finland, austria, and denmark as the top 10 destinations for adventure travel. because of the asian population’s thirst for adventure, atta anticipates that this growth will continue. however, political changes may affect the movement of tourists in various ways, and the collapse of democracies worldwide may increase the possibility of unjust treatment and a lack of assistance from the home nation in specific crisis situations (20 adventure travel trends to watch in, 2018). a hazy notion and a diverse industry where new activities are always emerging are both seen as adventure tourism. due of its complexity, adventure tourism is more akin to a category than a concept (rantala, et al., 2016). uncertainty was highlighted by carpenter and priest (1989) as a distinctive aspect of the adventure experience paradigm, highlighting its key role within adventure activities. while an adventure is extremely possible if all of these components are present, it will not be one if any of them are present alone. the elements are compatible with “rapid adventure” (varley and semple, 2017). beard (2019) contends that while exercise is necessary, an adventure as defined is mostly a “state of mind” and “an attitude” of the individual. as adventure is about involving, thrilling, and testing participant abilities, this may be seen as one pillar in comprehending the appeal of adventure tourism. pushing one’s own boundaries is a crucial component in discovering one’s own self. buckley (2017) concludes that an adventure tourist's “rush sensation” is their greatest gain. “the simultaneous sense of thrill and flow associated with the successful performance of an adventurous activity at a high level of competence” is what the term “rush” means (buckley, 2017). the term “thrill” in this context refers to “a solely adrenalin-based physiological response”, while the term “flow” refers to “any sort of skillful activity when the exponent’s mental attention coincides totally with their physical practice”, such that they are “intensely engrossed” (buckley, 2017). large and schilar (2018) primarily focused on adventure as a mental state, and their study takes into account the experiences of the individuals. another aspect of adventure tourism and travel that demiroglu, dannevig, et al., (2018) discussed was climate change. their article focuses on how climate change will interact with the very weatheramerican journal of business management, economics and banking volume 33 february 2025 p a g e | 46 www.americanjournal.org dependent ski tourism industry. climate change will interact with adventure tourism in many ways. the sustainability of skiing areas will be at risk due to climate change, which has drawn a research focus to impact and adaptation studies including ski areas, resorts, and destinations, but the amount of study on the demand side of the problem is rather small. the most noteworthy change has been the increased influence of environmental elements. the overwhelming relevance of the natural environment in respondents' pull factors, or external reasons, illustrates the growing value of distinctive natural surroundings in validating adventure tourism experiences. several of these activities may now be done in a variety of different places figure-1. figure -1. concept of adventure tourism and tourist satisfaction4 methodology this study will take a qualitative approach to research. this will enable an analysis of adventure tourism concept and local tourist satisfaction in uzbekistan. a qualitative research technique is an effective tool for investigating specific occurrences since it explains human nature and how individuals make sense of their surroundings and lives. this sort of analysis looks at people’s attitudes in everyday circumstances and is less technical than quantitative approaches, making it perfect for researching tourism and hospitality issues. this research can be conducted through ethnographic fieldwork and/or a combination of methodologies that are more inductive and explorative in nature. such procedures can include interviews, participant or non-participant observations, and focus groups. 4 author work adventure tourism concept danger and risk challenge stimulation and excitement physical activity natural environment tourist satisfaction american journal of business management, economics and banking volume 33 february 2025 p a g e | 47 www.americanjournal.org the general goal of this research is to establish ways to assist the growth of adventure tourism in uzbekistan, and visitor satisfaction for adventure tourism. the use of research philosophy in research means that qualitative research is based on interpretivism, whereas quantitative research is based on positivism. a convenience sample of 20 international tourists will be used to conduct this research at the resort. the tourists will be approached and asked whether they would be agreeable to answer several questions about their satisfaction by participate in adventure tourism in uzbekistan. result the interviews were conducted with local tourists who for adventure purposes. there were 11 males (55%) and 9 females (45%) interviewed. two of the respondents were 70 years of age, the majority of respondents were between the ages of 20 and 30. another 30% of respondents were 31 years or older. the findings show that there is a growing demand for adventure tourism and that the adventure tourism market in uzbekistan that is close to tashkent such as resort one of the main adventure tourism destinations which is attracting a significant flow of international tourists from all over the world. this region's tourism potential and attractions had been promoted, and tour companies had worked hard to bring more international tourists to uzbekistan. however there some major issues and improvements needed that must to be considered in order to encourage more tourists to come to uzbekistan. replies from several respondents have revealed that there are several problems in the training of the adventure tourism industry in uzbekistan, particularly in regard to the need for better training. several responses suggested that the government should provide this type of training, especially for extreme activities. respondents cited the importance of gaining more knowledge about adventure tourism, extreme activities, and tourist desires for new activities were identified as primary elements influencing visitors’ incentives to participate in adventure activities. based on the interviews, respondents noted various concerns, such as instructions on safety measures were frequently too short, ambiguous, difficult to comprehend, not presented in multiple languages, nor delivered using the latest technology such as through monitors and video displays. however, several guests commented that the resort utilized a range of brand new, high-quality equipment. the need for safety equipment and instructions are critical to reducing risk during activities, and when dangers are present, this can affect tourist decision making in their selection of activities. conclusion adventure tourism has gained in popularity in recent years, alongside traditional and classic types of travel such as historical tourism, ecotourism, agricultural tourism, medical tourism, virtual tourism, backpacking and bicycle tourism as well as culinary tourism. this may be because tourism services are becoming more diverse. in recent years, practical initiatives have been taken to diversify the structure of tourist services and to promote new kinds of tourism in uzbekistan. through adventure tourism, much attention has been placed on increasing the flow of tourists. this qualitative study has demonstrated that there are several weak points inhibiting the expansion of adventure tourism. these are linked to the need for further training, risk management procedures, adventure equipment, and more in-depth education about winter activities. american journal of business management, economics and banking volume 33 february 2025 p a g e | 48 www.americanjournal.org another disadvantage that was stated was a lack of danger signs or billboards warning about trespassing, medical services, ambulance or first aid supplies, more helmets, defibrillators, anti-poison medicine, and satellite phones. the research also revealed the need for more adventure tourism specialists to aid in the expansion of the adventure tourism market in the uzbek tourist industry. references 1. anuar, n. a. (2021). examining the push-pull motivations and revisit intention to langkawi island as cultural heritage destination. advances in economics, business and management research, 1-8. 2. giddy, j.k. & webb, n.l. (2018). the influence of the environment on adventure tourism: from motivations to experiences. current issues in tourism, 21 (18), 2124-2138. https://doi.org/10.1080/13683500.2016.1245715 3. ross, s., sand, m. & berger, t. (2023). examining the adventure traveller behaviour-personality, motives and socio-demographic factors as determinants for german adventure travel. european journal of tourism research, 33, 3307-3307. https://doi.org/10.54055/ejtr.v33i.2795 4. giddy, j.k. (2016). adventure tourism in south africa: challenges and prospects. tourism: an international interdisciplinary journal, 64 (4), 451-455. 5. xalilov, s. (2023). turizm industriyasida yoshlar tadbirkorligini rag’batlantirishning tashkiliy jihatlari. 6. сайфутдинов, ш. с. (2023). the impact of digital technology on the longterm suistanible development of the tourism sector. журнал инновации в экономике, 6(6). 7. berdiyorov, b. s. (2022). prospects of effective use of digital big data analytics in the field of tourism. international journal of pedagogics, 2(12), 121-125. 8. abdurahmanov shohrukh abdujabbarovich. (2025). importance of special interest tourism and its micro-segment development. journal of new century innovations, 70(1), 237-242. https://scientific-jl.com/new/article/view/1398 9. norchayev, n. a. (2019). expected changes and opportunities in tourism infrastructure. economics and innovative technologies, 2019(1), 14. 10. baxtishodovich, s. b., toirkhanovna, a. m., ahrorov, f., & eshtaev, a. (2023, april). the essence and composition of regional tourist resources: scientific theoretical analysis. in international conference on advance research in social and economic science (icarse 2022) (pp. 528-535). atlantis press. https://doi.org/10.1080/13683500.2016.1245715 https://doi.org/10.54055/ejtr.v33i.2795 https://scientific-jl.com/new/article/view/1398 american journal of business management, economics and banking issn (e): 2832-8078 volume 27, | august 2024 p a g e | 39 www.americanjournal.org methodology for assessing the impact of information and digitalization on agricultural development rajamuradov kh. z. tashkent state agrarian university, researcher a b s t r a c t k e y w o r d s the article discusses the methodology for determining the relationship and correspondence between the agricultural development and informatization. research on the interdependence between agricultural informatization and agricultural economics has shown that they play an important role in mutual assistance and integration. to assess the relationship between the development of agriculture and information technology using the method of entropy values and correlation analysis, a methodology was developed to assess the degree of relationship and compatibility using regional data for a certain period. agricultural informatization, agricultural development, agricultural economy, digitalization, entropy. introduction in order to bring agricultural development and product prices to a fair level [0], it is necessary to accelerate the pace of agricultural informatization and implement an effective combination of agricultural production and information technology [2]. if we study the history of the development of agricultural enterprises, the level of agricultural informatization is the basis for the continuous development of the agricultural economy, and the agricultural economy encourages the introduction of informatization in the development of the sector [3]. due to the close relationship between agricultural economics and field information [4], we will consider the relationship between them. acceleration of agricultural informatization is an inevitable choice for the development of sustainable agriculture [5]. some scholars [6] consider agricultural informatization to cover the entire farming process and rely on modern information technology equipment such as information networks and digitalization to support agricultural activities, control and manage agricultural resources, and support agricultural economic development and social informatization, they believed that it should be understood as a broad concept. other scholars [7] have developed a system of relevant indices, taking into account the economic, social and environmental benefits, to comprehensively evaluate the benefits of agricultural informatization to understand the importance of agricultural informatization. research on the role of agricultural informatization is mainly expressed in the contribution of agricultural informatization to the rural economy [8], the integration of agricultural informatization and agricultural technological upgrading [9], and in the relationship between agricultural informatization american journal of business management, economics and banking volume 27 august 2024 p a g e | 40 www.americanjournal.org and agricultural economy [0some scholars have studied the contribution of agricultural informatization to the agricultural economy and put forward countermeasures and suggestions for increasing the level of informatization [0]. other scholars also created an indicator system of agricultural informatization and agricultural modernization, evaluated the degree of integration of agricultural informatization and agricultural modernization in the country and large regions, put forward countermeasures and proposals for the integration of agricultural informatization and agricultural modernization [0]. thus, scholars research on the relationship between agricultural informatization and agricultural economics has shown that they play an integral role in mutual support and integration. in order to assess the relationship between agricultural development and informatization, using the entropy value method and link coordination analysis, a methodology for assessing the levels of relationship and compatibility was developed using relevant regional data of a certain period. agricultural informatization becomes more useful when the agricultural producer has more information resources, which allows to increase the agricultural economy [0]. with the rapid development of agricultural information technology, the methods of obtaining agricultural information by farms have become more flexible and efficient. information transfer is no longer carried out in the form of primitive communication between people in the past, but with the help of computers and modern communication networks. this change significantly increases the efficiency and quality of agricultural information use by farmers [6]. improvement of ict infrastructure helps to overcome information limitation and information asymmetry in rural areas and is a necessary preparation for agricultural informatization [0]. the purpose of the study is to develop models to estimate the degree of dependence and the degree of coordination based on the republican statistical data from 2015 to 2022 using the entropy value method and linkage coordination analysis; to calculate the level of interdependence and coordination of agricultural informatization and economic development of agriculture in the republic every year, comprehensively analyze the level of coordination between them and propose appropriate countermeasures and suggestions. by 2022, the level of television and radio coverage in the republic has exceeded 97%, the level of coverage of mobile communication has also exceeded 95%, and the level of broadband internet coverage is also increasing. this will help agricultural producers to get agricultural information faster and more conveniently, and will help to develop agricultural informatization. table-1. system of evaluation indicators. degree indicators secondary indicators level of agricultural informatization communication and information services, billion soums x1 ict services in gdp share, in % x2 mobile internet users, one thousand people x3 electricity consumption, million wh x4 to the internet connected number of subscribers, up to 100 in % relative to x5 100 houses to farms number of computers, pcs x6 length of optical fiber communication lines, thousand km x 7 degree in agricultural economics gross agricultural product value, million soums x8 village farm of the mah dynasty population soul per head ratio, soum x9 from the villages migration, person x10 american journal of business management, economics and banking volume 27 august 2024 p a g e | 41 www.americanjournal.org this study is based on the development of a qualitative analysis of the level of agricultural informatization and the level of economic development of the republic, as well as the development of a model for quantitative analysis of the level of coordination between them, without separately assessing the level of agricultural informatization and the level of economic development of agriculture. when choosing a combination of two indicators, the value of a comprehensive index 0] and lee [13]. 0a system of indicators to measure the coordination between agricultural informatization and the level of economic development of agriculture is defined as shown in table-1. based on the different characteristics and features of each evaluation index in the evaluation index system, the use of direct primary data for research and analysis may increase the influence of the evaluation index with a high value in the analysis and reduce the role of the evaluation index with a small value in the analysis [06]. therefore, to ensure the reliability of the calculation results, the data are normalized according to the min-max standardization method described in this article. clearly formula as follows : 𝑌𝑖𝑗 = 𝑋𝑖𝑗 − 𝑋𝑗min 𝑋𝑗max − 𝑋𝑗min where yij is represents the normalized value of the j-th (i=1,2,3,4,5,6,7,8,9,10) index for the i-th (j=1,2,3,4,5,6,7,8) year; xij represents the initial data of the j-th index for the i-th (i=1,2,3,4,5,6,7,8) year; xj min represents the minimum initial data for eight years for each evaluated index; and xj max which represents the largest initial data for each evaluation index over eight years. the method of entropy value determination is an important application of entropy theory in the field of weight determination. the degree of dispersion and the importance of analyzing each estimated indicator can be evaluated by the entropy value and the weight of the index [07]. as a rule, the lower the entropy value, the greater the degree of variability of the index value, the greater the weighting coefficient, the more information is given, the greater role it plays in the comprehensive assessment, and vice versa [0]. the rationality of the index weight coefficient directly affects the reliability of the complex assessment result and even the correctness of the decision made. the entropy method is a combination of static and dynamic weight, and its novelty lies in its flexibility, which compensates for the shortcomings of the subjective weight method and makes the evaluation more scientific and reasonable. in order not to affect the calculation result of the analysis, this paper uses the entropy value method to determine the weight of each index. the exact calculation steps are as follows: calculate the share of the index value according to the standardized index data: 𝑃𝑖𝑗 = 𝑌𝑖𝑗 ∑ 𝑌𝑖𝑗 𝑛 𝑖=1 , (𝑖 = 1, 2, 3, … , 𝑛) this on the ground pij in the i-th year is what of the j indicator share represents calculation of the information entropy of each evaluation indicator (that is, describing the uncertainty of the occurrence of each possible event of the information source): 𝐸𝑗 = − 1 ln(𝑛) ∑(𝑃𝑖𝑗ln⁡(𝑃𝑖𝑗)) 𝑛 𝑖=1 american journal of business management, economics and banking volume 27 august 2024 p a g e | 42 www.americanjournal.org here, ej represents the information entropy of the jth index. calculating the usefulness of information: 𝐷𝑗 = 1 − 𝐸𝑗 calculation of the weight of each evaluation indicator: 𝑊𝑗 = 𝐷𝑗 ∑ 𝐷𝑗 𝑛 𝑗=1 (𝑗 = 1, 2, 3, … , 𝑛) where wj represents the weight of the j-th evaluation index. since there are ten evaluation indices, the number of years, n , is equal to 8 here . also ∑ 𝑊𝑗 𝑛 𝑗=1 = 1 it is an indicator of comprehensive assessment of agricultural informatization and agricultural economic development efficiency for each year: 𝑈 =∑(𝑊𝑗𝑌𝑖𝑗) 𝑛 𝑖=1 for objective assessment, the method of determining the entropy value for the level of agricultural informatization and the level of economic development of agriculture is selected, then the model for measuring the relationship between agricultural informatization and economic development of agriculture and agricultural informatization is used. the degree of dependence assessment model is used to measure the influence between two or more systems to reflect the degree of interdependence and mutual constraints between the systems. this paper examines the degree of interrelation between agricultural informatization and agricultural economic development as a relationship between "agricultural informatization" and "agricultural economic development". the calculation formula is given below: 𝐶 = 2 × [ 𝑈1 × 𝑈2 (𝑈1 + 𝑈2)2 ] 1 2 where c represents the degree of interdependence between agricultural informatization and agricultural economic development, u1 represents the comprehensive evaluation index of agricultural informatization, and u2 represents the comprehensive evaluation index of agricultural economic development. degree of interaction c ∈ [0, 1]; when c = 1, the level of communication reaches the maximum level, in which the interaction between agricultural informatization and agricultural economic development reaches the maximum level, and when c = 0, the level of communication reaches the minimum value, which indicates the absence of interaction between the level of agricultural information and agricultural economic development. economic development, that is, these two develop in an irregular direction. the higher the value of c, the stronger the correlation effect between them. the model for the analysis of the degree of interdependence mainly reflects the degree of mutual stimulation and mutual restriction between agricultural information and agricultural economic development without distinguishing the directions of action. however, it cannot reflect the degree of coordination between them. therefore, in order to more accurately reflect the degree of coordination between them, he developed a model for evaluating the degree of interdependence between agricultural information and agricultural economic development based on the degree of interdependence model. the model looks like this: 𝑇 = 𝛼 × 𝑈1 + 𝛽 × 𝑈2 , 𝐷 = √𝐶 × 𝑇 american journal of business management, economics and banking volume 27 august 2024 p a g e | 43 www.americanjournal.org where t is a comprehensive index of agricultural informatization and economic development of agriculture; u1 comprehensive assessment index of agricultural information; u2 comprehensive assessment index of economic development of agriculture; and, in turn, the contribution coefficients of 𝛼, 𝛽agricultural informatization and agricultural economic development. in this paper, when studying the degree of coordination between the relationship between agricultural informatization and agricultural economic development, both are considered very important and 𝛼 + 𝛽 = 1, therefore, 𝛼 = 𝛽 = 0,5⁡it is assumed that [0 table 2. criteria for the level of coordination of dependence. coordination level d value range. coordination level ( m ) level of coordination classification ( n ) 0 . 0 ≤ d ≤ 0.1 0 .1 < d ≤ 0.2 0 .2 < d ≤ 0.3 0.3 < d ≤ 0.4 0 .4 < d ≤ 0.5 0.5 < d ≤ 0.6 0.6 < d ≤ 0.7 0.7 < d ≤ 0.8 0.8 < d ≤ 0.9 0.9 < d ≤ 1.0 1 2 3 4 5 6 7 8 9 10 extreme inconsistency intermediate serious inconsistency average discrepancy slight inconsistency on the brink of inconsistency perfect compatibility light compliance average compliance good compatibility high compatibility d represents the degree of coordination between agricultural information and economic development of agriculture, and d ∈ [0, 1]. when d = 1, the degree of coordination between agricultural information and economic development of agriculture is at its best, and when d=0, it indicates that there is no degree of coordination between them. when the value of d tends to 1, it indicates that the degree of coordination between them is high. 10 classification standards for the degree of coordination are defined as shown in table-2, corresponding to the calculations for determining the degree of coordination of dependence. put compare table-1 if the statistical data of the samarkand region and the republic 2015-2022: table-3. statistical indicators of samarkand region. x1 x2 x3 x4 x5 x6 x7 x8 x9 x10 2015 350.5 1, 9 758.2 2912.6 21.4 38 1.1 14 300.0 4068.5 10755 2016 410.7 1, 8 865.0 2 947.5 23.9 39 1.2 17,088.6 4768, 2 10950 2017 536.5 2 , 0 1 018.7 3 247.8 27.6 40 1.3 21,506.8 5889.5 12183 2018 620.3 1.9 1 225.7 4 425.8 32.6 42 1.5 25,658.0 6897.1 12779 2019 633.7 1.6 1 505.9 2 769.7 39.2 45 2.1 28 379.5 7470.4 11314 2020 716.9 1, 7 1 795.4 4 130.1 45.9 50 6.1 33 759.4 8706.7 15097 2021 835.8 1, 6 2 132.5 4 603.3 53.5 52 11.0 41 206.1 10221.5 14941 2022 1 073.7 1.7 2 407.4 4,795.9 59.1 53 15.9 42,088.9 10220.2 12014 american journal of business management, economics and banking volume 27 august 2024 p a g e | 44 www.americanjournal.org table-4. statistical indicators of the republic. x1 x2 x3 x4 x5 x6 x7 x8 x9 x10 2015 5181.5 1.6 7 793.7 45008.6 26.6 47 20 99604.6 3210.7 12 561 2016 6306.8 1.8 9 022.9 45058.8 30.2 49 22.1 115599.2 3661 17,983 2017 8196.7 1.9 10 258.8 46746.3 34.5 50 24.5 148199.3 4613.8 24 562 2018 10332.6 1.7 12,668.6 60744,8 40.4 52 26.6 187425.6 5739.3 25 473 2019 10891.7 1.4 15,651.2 54174.8 48.8 55 36.6 216283.1 6503.6 34 682 2020 13852.3 1.5 17,946.5 53839.8 58.4 60 68.6 250250.6 7380.9 77 971 2021 17755.1 1.6 20,991.8 56268,9 65.8 63 118.0 303415.5 8779.6 111 919 2022 24508.1 1.8 24,017.6 59109.3 75.0 64 170.6 345191.7 9786.7 99,064 table-5. determining the weight of evaluation indicators. degree indicators samarkand region republic entropy weight entropy weight level of agricultural informatization x1 0.850 0.073 0.704 0.111 x2 0.857 0.069 0.730 0.102 x3 0.820 0.087 0.826 0.065 x4 0.801 0.097 0.804 0.074 x5 0.824 0.085 0.674 0.123 x6 0.808 0.093 0.833 0.063 x7 0.590 0.199 0.636 0.137 degree in agricultural economics x8 0.851 0.072 0.654 0.130 x9 0.861 0.067 0.727 0.103 x10 0.685 0.153 0.759 0.090 by calculating the entropy value of the ten evaluation indicators, it can be seen that the accuracy of the information reflected in them, the entropy value method for weighting the indicators is perfect. the level of agricultural informatization of ten indicators in the samarkand region, the weight of the length of optical fiber communication lines (0.199) is higher than the average weight (0.1), the consumption of electricity (0.97) and the number of computers per 100 farms (0.93) is equal to the average weight; from the level of agricultural economy, the weight of population migration from villages (0.153) had the greatest impact. this indicates that the level of coordination of agricultural informatization and economic development of agriculture in the region is determined by infrastructure development and personnel issues. according to the republic, communication and information services (0.111), the share of ict in gdp (0.102), the number of subscribers connected to the internet in the region (0.123), the length of optical fiber communication lines (0.137), these three evaluation indicators are agricultural informatization and coordination of agricultural economic development has the greatest effect on measuring the level. since these three indicators are related to the content of the agricultural informatization index, the development level of agricultural informatization is the main factor affecting the coordinated development of these two levels. the weights of agricultural output (0.130), agricultural output per capita ratio (0.103) from the level of agricultural economy show that agricultural development also has its share in this coordination. therefore, accelerating the implementation of american journal of business management, economics and banking volume 27 august 2024 p a g e | 45 www.americanjournal.org agricultural informatization is one of the priority areas of coordination of agricultural informatization and agricultural economy development. table-6 shows that in the period from 2015 to 2022, the level of correlation between agricultural information and agricultural development has a stable high index and continues to grow. the level of compliance increased steadily until 2022 in the samarkand region and slightly decreased in 2022, while the increase continued in the republic. table-6. degrees of dependence and compatibility samarkand region republic c t d m n c t d m n 2015 0.001 0.030 0.004 1 extreme inconsistency 0.005 0.026 0.011 1 extreme inconsistency 2016 0.859 0.045 0.196 2 intermediate serious inconsistency 0.713 0.069 0.221 3 average discrepancy 2017 0.964 0.121 0.343 4 slight inconsistency 0.869 0.116 0.318 4 slight inconsistency 2018 0.956 0.187 0.423 5 on the brink of inconsistency 0.901 0.173 0.394 4 slight inconsistency 2019 0.953 0.135 0.358 4 slight inconsistency 0.973 0.174 0.411 5 on the brink of inconsistency 2020 0.983 0.313 0.554 6 perfect compatibility 0.972 0.267 0.510 6 perfect compatibility 2021 0.961 0.395 0.616 7 light compliance 0.970 0.377 0.605 7 light compliance 2022 0.825 0.425 0.592 6 perfect compatibility 0.937 0.481 0.671 7 light compliance in general, agricultural informatization and agricultural economic development are increasingly interrelated and mutually limited, which is mainly reflected in the rapid growth of the agricultural economy and is encouraged by the development of agricultural informatization. references 1. lima g.c., et al. agro 4.0: enabling agriculture digital transformation through iot. revista ciência agronômica, 2021. 51. 2. li c. and niu b. design of smart agriculture based on big data and internet of things. international journal of distributed sensor networks, 2020. 16(5): p. 1550147720917065. 3. khanna m. digital transformation of the agricultural sector: pathways, drivers and policy implications. applied economic perspectives and policy, 2021. 43(4): p. 1221–1242. 4. cook s., et al. embedding digital agriculture into sustainable australian food 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and computer modelling, 2013. 58(3–4): p. 868–876. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 122 www.americanjournal.org some theoretical aspects of retail services of commercial banks umid mukhidinovich ochilov master of banking and finance academy e-mail: umidochilov85@gmail.com orcid: 0009-0008-4494-3509 a b s t r a c t k e y w o r d s this article analyzes the theoretical foundations of retail services provided by commercial banks. it explores the concept of retail banking services, their structure, core characteristics, and their role in a market economy. the author examines various definitions and approaches found in economic literature and proposes a comprehensive theoretical framework. the theoretical insights presented in the article can serve as a basis for developing practical recommendations aimed at further developing the retail segment of banking services. commercial banks, retail services, bank clients, financial intermediation, market economy. introduction today, the expansion of the scope of retail services in the activities of commercial banks is an important factor in further democratizing the financial system, providing banking services to all segments of the population, and stimulating economic growth. retail banking services are a set of financial products and services offered by commercial banks to individuals, as well as small businesses. these include deposits, microloans, plastic cards, mobile and internet banking, payment services, and many other operations. the formation of the economy on the basis of market relations, increased competition, and the introduction of digital technologies are increasing the importance of the retail segment in the activities of banks. at the same time, the growth of incomes of the population, the increase in demand for banking services, and the increase in financial literacy are also having a positive effect on this process. although retail banking services are considered a theoretically well-studied area, there are different approaches to some of its concepts, structural aspects, and classification. therefore, this article aims to review some theoretical aspects of retail services provided by commercial banks, identify their economic essence, and generalize them based on modern approaches. literature review retail banking services have been widely studied by many foreign and domestic scholars as one of the important areas in the activities of commercial banks. these services are characterized by direct contact american journal of business management, economics and banking volume 35 april 2025 p a g e | 123 www.americanjournal.org with customers, a variety of products and services, as well as the ability to get closer to customers [1]. a.v. batovrin defines retail banking as “a type of banking activity that offers customers regular, mass and standardized services” [2]. according to him, the level of competition in the retail services market is high, and innovative approaches and digital technologies serve to increase the efficiency of banking activities. the well-known engineer and specialist f.s. sharipov pays special attention to the directions of development of retail banking services in uzbekistan in his research. in his opinion, the strength of the infrastructure, the financial literacy of customers and the innovative approaches of banks play an important role in providing banking services to the population [3]. also, local scientists such as m. rozikov and b. ergashev have conducted scientific research on the role of retail services in the activities of uzbek commercial banks and their effectiveness [4]. they evaluate these services as a means of approaching customers and a mechanism for ensuring financial inclusion. in foreign literature, the concept of retail banking is often described in connection with customer focus, mass service provision, and the creation of competitive products. for example, molyneux and wilson interpreted the concept of retail banking services based on a customer service culture and personalized approaches [5]. thus, an analysis of the scientific literature shows that views and definitions of retail banking services are diverse and it is necessary to generalize them on the basis of a single theoretical approach. this will help to rationally organize reforms aimed at increasing the effectiveness of these services in commercial banks. analysis and results retail banking services are one of the strategic directions in the activities of commercial banks, through which the population and small businesses are more widely involved in banking services. analysis of scientific sources shows that retail services not only serve to meet the financial needs of customers, but also serve as a stable source of income for the bank [1]. first, the main forms of retail services deposits, consumer loans, payment services, card services, internet and mobile banking allow you to establish a permanent and interactive relationship with customers. in this regard, the introduction of digital technologies is significantly increasing the scope and quality of services. for example, in uzbekistan, the number of mobile banking users has increased by almost 5 times over the past five years [6]. from an economic point of view, retail services allow you to diversify bank resources, minimize risks, and expand the customer base. because these services are often offered to a large number of customers in the form of small transactions, and this increases the level of security for the bank. also, banks attract public funds through retail services and form a long-term resource base [7]. analysis shows that the share of retail services in banking is increasing. for example, retail services account for approximately 30–35% of the total active income of uzbek commercial banks [6]. this further increases the strategic importance of this sector. at the same time, in developing countries, including uzbekistan, it is noted that the full coverage of retail services and the level of convenience for customers are insufficient. one of the reasons for this is the low level of financial literacy, insufficient development of infrastructure in some regions, and low trust in digital platforms [6]. american journal of business management, economics and banking volume 35 april 2025 p a g e | 124 www.americanjournal.org from the above, it is clear that retail banking services are theoretically an important mechanism for ensuring economic stability, deepening market relations, and financial inclusion. therefore, it would be advisable for commercial banks to reconsider their retail services strategy not only from a technical perspective, but also from a customer-oriented perspective. table 1 number of customers by types of retail banking services1 (in the case of uzmilliybank jsc bukhara region) type of service 2021 year 2022 year 2023 year loans to individuals (thousands) 150 180 210 plastic card users (thousands) 500 600 750 internet banking users (thousands) 200 250 300 mobile app users (thousands) 150 220 280 warehouse funds (thousands) 400 450 500 analysis of the table data shows that during 2021-2023, there has been a steady growth in the activities of commercial banks in the field of retail services. this confirms the intensification of digital transformation processes in the banking system, the increasing demand of the population for financial services, and the active efforts of banks to meet the needs of customers. the number of loans granted to individuals amounted to 150 thousand in 2021, and reached 210 thousand in 2023. that is, a 40% increase was observed over two years. this growth indicates that the population's confidence in bank loans is increasing and banks are expanding retail credit products. the number of plastic card users was 500 thousand in 2021, and reached 750 thousand in 2023. this represents a 50% increase and indicates that the population is actively transitioning to cashless payments. the convenient infrastructure and promotional card system created by banks were an important factor in this. the number of internet banking users increased from 200 thousand in 2021 to 300 thousand in 2023. this is also an increase of 50%, which indicates increased confidence in internet technologies, the introduction of additional online services, and improved integration with mobile applications. the number of mobile application users increased from 150 thousand in 2021 to 280 thousand in 2023. this is the highest growth rate in the table with an indicator of 86.7%. such dynamics indicate that mobile banking is gaining popularity among the population due to its speed, convenience, and constant updating. depository deposits (the number of depositors) increased from 400 thousand in 2021 to 500 thousand in 2023. the 25% growth indicates that the population has increased confidence in the banking system and is turning to official financial institutions to store and increase their funds. based on the analysis, it can be said that the volume and quality of retail services provided by commercial banks in uzbekistan is increasing year by year. the rapid development of digital services internet and mobile banking services serves to improve interactive communications with the population and increase the efficiency of banking activities. also, the growth of deposit and loan services is becoming increasingly important in ensuring financial inclusion. one of the top priorities for banks should be to expand the geographical and digital coverage of services, ensure an individual approach to customers, and develop competitive 1 compiled by the author based on the data of the national bank of bukhara region. american journal of business management, economics and banking volume 35 april 2025 p a g e | 125 www.americanjournal.org retail products. conclusions and suggestions based on the analysis and scientific sources, it can be concluded that retail services of commercial banks play an important role not only in meeting the financial needs of the population, but also in forming stable sources of income for the bank. retail services create an opportunity to get closer to customers, gain their trust, offer competitive products and ensure financial inclusion. the growth trends observed in the field of internet banking, mobile applications, plastic cards and retail loans in recent years indicate that banks are successfully adapting to digital transformation. at the same time, infrastructural shortcomings, insufficient financial literacy and distrust of digital services still remain one of the obstacles. to address the above pressing issues, we have developed the following proposals: 1. expansion of promotional activities aimed at increasing financial literacy: comprehensive programs should be developed in cooperation with banks, mass media and educational institutions to improve financial information and skills of using retail banking services among different strata of the population. 2. diversification of the portfolio of retail services: commercial banks need to segment their products and develop specially designed services for different customer groups, such as young people, pensioners, entrepreneurs, students. 3. strengthening technical and information security of digital services: in order to increase trust in internet and mobile banking, banks should strengthen cyber security measures, introduce two-step authentication, biometric identification and personal data protection systems. 4. development of banking infrastructure in rural areas: to expand the geographical coverage of retail services, it is necessary to expand the population's access to banking services by establishing branches, mobile banking offices, and info kiosks in remote areas. references: 1. goyal, k.a., & joshi, v. (2012). a study of social and ethical issues in banking industry. international journal of economics and research, 3(2), 49–57. www.ijeronline.com 2. батоврин, а.в. (2010). частный банкинг и управление благосостоянием клиентов. москва: дело. 3. sharipov, f.s. (2021). priority areas for the development of retail banking services in uzbekistan. finance and banking, no. 1, 45–52. www.journal.finbank.uz 4. rozikov, m., & ergashev, b. (2020). ways to improve the efficiency of retail services in commercial banks. economics and innovative technologies, no. 4, 76–84. www.iqtisodiyot.uz 5. molyneux, p., & wilson, j.o.s. (2007). retail banking. cheltenham, uk: edward elgar publishing. www.e-elgar.com 6. central bank of uzbekistan. (2024). annual statistical bulletin. tashkent. retrieved from: www.cbu.uz 7. international finance corporation (ifc). (2022). digital financial services: challenges and opportunities in emerging markets. washington, d.c. retrieved from: www.ifc.org 8. иода е.в. классификация банковских рисков и их оптимизация / е.в. иода, л.л. мешкова, е.н. болотина. под общ. ред. проф. е.в. иода. 2-е изд., испр., перераб. – тамбов: изд-во тамб. гос. техн. ун-та, 2002. 120 с. http://www.ijeronline.com/ http://www.journal.finbank.uz/ http://www.iqtisodiyot.uz/ http://www.e-elgar.com/ http://www.cbu.uz/ http://www.ifc.org/ american journal of business management, economics and banking volume 35 april 2025 p a g e | 126 www.americanjournal.org 9. рыхтикова н. а. анализ и управление рисками организации. 2 изд. м.: форум, 2010. 240 с. 10. поморина м.а. управление рисками как составная часть управления активами и пассивами банка // банковское дело. 1998. №3. с. 1217. 11. классификация банковских рисков и их оптимизация / под общ. ред. проф. е. в. иода. 2-е изд., испр., перераб. тамбов: изд-во тамб. гос. техн. ун-та, 2002. 12. лобанова а.а., чугунов а.в. энциклопедия финансового риск-менеджмента. –м.: “юрайт”, 2006. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 9 www.americanjournal.org the impact of the investment environment on economic development yu. m. khasanova senior lecturer, karshi state university a b s t r a c t k e y w o r d s the article highlights the advantages of using investments in the development of the country’s economy, as well as approaches related to extended multifactor and risk-oriented investment, and issues related to indicators of investment activity at the enterprise level. investment, investment advantages, extended multifactor approach, risk, evaluation indicators. introduction investment is considered a driver of the economy. today, the country’s economic policy is closely linked to investments. in 2022, a total of 240 trillion soums were attracted to uzbekistan, of which 8 billion dollars came in directly, and the export volume amounted to 19 billion dollars. under the state investment program, 158 large projects worth 3.7 billion dollars were launched, creating nearly 25,000 new jobs. most of these projects correspond to the energy and mining-metallurgy industries, agriculture, light industry, and the production of building materials. it is planned to attract 30 billion dollars of investments in 2023, 25 billion of which will be private investments. legal bases have been created in the republic of uzbekistan to develop the investment environment, and several regulatory documents reflecting guarantees and benefits have been adopted. these documents define the protection of private property by the state, conditions for a competitive environment, and the creation of necessary investment infrastructure. furthermore, the political stability and rich natural mineral resources in the country open wide opportunities for developing the investment environment. however, these alone are not sufficient for progress in line with modern times. rapid development in the global community requires the generation of new modern ideas to achieve appropriate positions in world rankings. attracting foreign investments on a large scale allows for structural changes in the economy, strengthening the country’s export potential, creating high-tech competitive sectors, and applying advanced foreign technologies, know-how, and management experience. from this perspective, reforms are being implemented today to attract foreign investment and bring the economy to a new stage of development. literature review today, the issue of investment has become one of the main directions of economic research. among foreign and local scholars who have conducted research in this field are l.d. gitman, m.d. jonk, d.g. american journal of business management, economics and banking volume 43 december2025 p a g e | 10 www.americanjournal.org gʻozibekov, n.m. mahmudov, sh.a. madjidov, x.x. imomov, r.z. yuldashev, sh.sh. shodmonov, u.v. gʻafurov, sh.sh. shoh’zamiy, o.yu. rashidov, x.a. qurbоnov, m.s. qosimov, b.b. samarxоjaev, n.i. kenjaev, and others. economists l.d. gitman and m.d. jonk define investment as a means through which money’s value can be preserved or increased and can generate positive income. leading economists in uzbekistan, sh.sh. shodmonov and u.v. gʻafurov, in their textbook “economic theory,” define investments as the monetary form of expenditures aimed at restoring and increasing fixed and circulating capital and expanding production capacity. although the theoretical aspects of directly attracting investments for the development of the national economy have been explored in these studies, approaches to evaluating investment activity, such as the extended multifactor and risk-related approaches, as well as enterprise-level indicators of investment activity, have received less attention. research methodology the research uses methods of analysis and synthesis, as well as systematic and comprehensive approaches. analysis and results it is known that no country can develop without studying both the theory and practice of developed countries and the global community. therefore, for each country to efficiently organize production, achieve high economic indicators, and improve the social living standards of the population, mutually beneficial cooperation with national and foreign partners is appropriate. the investment environment and investment activity in the country are of critical importance. where effective investment activity exists, the flow of investments accelerating economic development intensifies. the country’s modern level of economic development depends on the pace of investment activity, which ensures steady economic growth. investment activity is determined by economic, social, organizational, legal, political, and other generalizing factors. the set of interrelated factors influencing investment activity is considered crucial for a country’s economy. thus, investment activity is a multidimensional, complex, and resource-intensive concept.investment potential is evaluated based on macroeconomic indicators, including: ➢ the availability of production factors and consumer demand in the region; ➢ results of economic activity; ➢ the level of scientific development and implemented achievements; ➢ the development of leading investment institutions; ➢ provision of integrated infrastructure. foreign methods of evaluating investment activity differ. typically, this evaluation is applied at the macroeconomic level. for example, in japan, a descriptive approach is used, and quantitative assessment is not applied. in the usa, it is determined based on a combined four indicators: entrepreneurial activity, the development potential of the economic system, economic efficiency of investments, and the main components of tax policy. international experience shows that to increase objectivity in evaluating investment activity, several important methodological principles developed by modern economic science must be considered. supporters of the limited-scope approach accept two options for calculating the usefulness of assets used as the main indicator of investment attractiveness: ➢ the ratio of gross profit from the sale of goods and services to total assets used; american journal of business management, economics and banking volume 43 december2025 p a g e | 11 www.americanjournal.org ➢ the ratio of net profit to total assets used. this approach is simple and universal, considering the main goal of business activity—profit and return on investment. it can be applied to study investment activity in various economic systems. however, this approach does not reflect the balance of interests, denies the objective connection between investments and resource factors, and is not linked to innovative development and economic stability. the multifactor method of evaluating investment activity better meets methodological requirements. its advantages include: accounting for the mutual influence of resource factors; using statistical data that reduces subjectivity; separate approaches at different levels of the economy; and striving to use all possible investment sources efficiently. the risk-level evaluation method primarily attracts the strategic investor’s interest. it identifies not only the attractiveness of investments but also the level of risk specific to a new object compared to the usual level of business risk for the investor. in this approach, both economic and political interests of the investor are taken into account. modern institutionalism in economic thinking provides new opportunities for analyzing investment activity. investment activity, by forming a separate structure within the institutional system of the economy, performs the task of creating conditions for the optimal use of social and economic relations through active investment during the development of production forces and scientific-technical innovation. conclusion in our opinion, assessing investment activity should be carried out in a hierarchical manner based on management organization and the economic entity. at the enterprise level, beyond the absolute volume of investments, the following can serve as indicators of investment activity: ➢ the ratio between old fixed assets and production equipment and new types created with new investments, describing the state of the enterprise’s material-technical base and its alignment with modern scientific-technical achievements; ➢ the share of new products produced using newly invested resources in total production volume, reflecting the creation of competitive products and the enterprise’s stable market position; ➢ the ratio of expenditures, including those aimed at forming production and non-production infrastructure, to revenues (“active” and “passive” parts), describing not only the total amount of capital invested but also its structural composition; ➢ the share of mechanization and automation costs in total production investment, describing the reduction of manual labor and the increase in operations performed with technical means, as well as the transition from single to mass production; ➢ the share of foreign investments in total investment volume, reflecting both the enterprise’s cooperation relationships and the participation of foreign capital in production; ➢ the volume of new (additional) investments and the corresponding increase in profit or income, reflecting investment efficiency and the direct results of investments. thus, in our opinion, investment activity is, first, the thoroughness of investment activity analysis; second, the selection of correct evaluation indicators; and third, the implementation of measures based on the effectiveness of investment plans. in any case, investment activity is aimed at improving the vital activity of enterprises and increasing their contribution to the development of the national economy. american journal of business management, economics and banking volume 43 december2025 p a g e | 12 www.americanjournal.org references 1.law of the republic of uzbekistan “on investments and investment activity.” no. o‘rq-598, 25.12.2019. 2.decree of the president of the republic of uzbekistan, 7 february 2017, “on measures to implement the strategy of actions for the five priority areas of development of the republic of uzbekistan for 2017–2021,” pf-4947. 3.abdullaeva sevara khasanova. issues of development of textile industry. collection of materials of the international scientific and practical conference (may 27, 2020). pp. 503–506. https://ruscience.com 4.sirojiddinov, i. q., & khodjibaeva, i. v. (2021). factors affecting regional investment potential. asian journal of multidimensional research, 10(5), 404–409. 5.zhusupalieva, c.t., mukhsinova, sh. o. (2022). the use of digital technologies in the analysis of entrepreneurship development in the republic of uzbekistan. international journal of theoretical and applied research, 2 (6–8), 42–57. 6.gʻozibekov, d.g. (2003). issues of financing investments. tashkent: finance, 332 pages. 7.kupriyanova, t. a. (2020). investment instruments as the basis of investment activity. finance and credit, 26(1), 213–227 https://ru-science.com/ https://ru-science.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 23 www.americanjournal.org improving the efficiency of working with problem loans in banks sultonov doniyor ruziboyevich head of collection service hamkorbank jscb hazorasp universal banking services office a b s t r a c t k e y w o r d s this article discusses how to improve the efficiency of working with problem loans in banks. lending is at the forefront of the functioning of any commercial bank and has always been given a special role. due to the increased volumes of lending to corporate clients, small businesses and the retail sector, the share of problem debt in banking structures is growing, which may subsequently develop into overdue debt. consequently, banks are forced to pay great attention to working with problem debt, develop new methods and mechanisms for identifying it, create separate divisions ready to effectively monitor and combat this debt. problem debt, problem loan, overdue loan, measures to collect problem debt, signs of a problem loan. introduction today, the most important problem for both credit institutions and their clients is the return of issued loans. not only the success of resolving a particular conflict situation, but also the stability and reputation of the bank itself depend on the correct choice of the method of working with "problem" assets. each bank chooses its own ways to resolve problem debts in accordance with the policy pursued within the organization. let us consider the main problems that arise in the process of working with problem assets of legal entities. the main problem of banks when independently working with problem debts is the lack of a clearly functioning and regulated legal mechanism for working with debts, as well as the lack of a general standard for working with problem assets. in order to minimize the legal risks that arise in the situations under consideration, banks must independently develop documentation (rules, instructions, procedure, regulations) for the settlement of problem debts. this document must provide for the delineation of powers between various structural divisions of the organization on the issue under consideration, and vest responsible persons with the appropriate rights and responsibilities [5]. in addition to this problem, there are significant problems in the legislative and regulatory field of activity of both banks and their clients that complicate the process of collecting problem debts. in uzbekistan, there is currently a legal way to evade debt repayment bankruptcy, despite the fact that it is very lengthy. bankruptcy is often a goal, the achievement of which allows the debtor to avoid the american journal of business management, economics and banking volume 33 february 2025 p a g e | 24 www.americanjournal.org return of debts that are "unbearable" for him. in the course of recognizing a person as bankrupt and conducting bankruptcy proceedings, creditors are often left "with nothing", since the bankrupt's property is clearly insufficient to satisfy the legal claims of all creditors. despite the prevalence of deliberate bankruptcy, it does not find due qualification in law enforcement agencies. in addition, given that arbitration managers have the authority (duty) to identify signs (facts) of deliberate bankruptcy, it should be noted that in many cases they fail to fulfill their duties for one reason or another. in this regard, the primary responsibility for preventing intentional bankruptcy should lie with the creditors themselves. however, to do this, they must have an understanding of the main goals and characteristics of the commission of this act [2]. often, deliberate bankruptcy is committed with the purpose of avoiding payment of accounts payable by stealing the property of the enterprise, coupled with the transfer of funds of the "insolvent" enterprise to structures controlled by the guilty party. the meaning of this criminal structure is that, in accordance with the civil legislation of the republic of uzbekistan [1], creditors' claims that are not satisfied due to the insufficiency of the property of the liquidated legal entity are considered to be extinguished. in addition to this problem, the bankruptcy procedure itself is very complex and lengthy, since effectively conducting the bankruptcy procedure does not mean simply being present at the procedure. correct interaction with creditors and correct communication with arbitration managers are required. effective actions are needed to search for the debtor's assets, to challenge transactions concluded by the debtor on the eve of the bankruptcy procedure. in addition, an adequate assessment of the assets that can be sold within the framework of the bankruptcy case is necessary. plus, the effective conduct of the auctions themselves and, as a result, the maximum return of money [3]. in addition to the problems in the legislation governing work with problematic debt, there are certain difficulties in the organizational process. thus, one of the problems is the bureaucratic structure of the bank, in which there are many departments, each of which performs its own functions and responsibilities, in fact, the client is not assigned to anyone. also, almost every action of a specialist in the process of his work with problematic debt is accompanied by documentation, it is necessary to make many value judgments. such a complex organizational structure extends the time with a problem asset. the department for work with problem assets works with corporate clients. enterprises can have different profiles, in this regard, it is necessary to have a lot of information to work with them, and it is also necessary to know the intricacies of each business. since clients are different, each one needs its own approach, develop a plan. the mechanism for working with problem assets is quite complex, labor-intensive and lengthy, since there are many procedures in this process, as a result of which employees do not have enough time. on the one hand, it is possible to increase the staff of employees, in this case the efficiency of the bank may increase. but, on the other hand, for the bank these are additional costs for wages. there is also a certain seasonality in this work, so you cannot take additional employees for a short period. in addition to organizational problems, difficulties with repayment of loans may also arise due to the fault of bank employees. these may be the following reasons: american journal of business management, economics and banking volume 33 february 2025 p a g e | 25 www.americanjournal.org we can also highlight the problems of dishonesty of bank employees: ✓ the first problem appears when credit officers issue a clearly problematic (non-repayable) loan to an obviously insolvent borrower. ✓ the second problem is that if the company is large, then credit officers work well, but if the company is small (5.6.7 million), then credit cards do not work well, as a result of which arrears of more than 90 days occur. in accordance with the previously identified problems, it is necessary to develop recommendations for improving the organization of the bank's work with problem loans. the first recommendation is related to the usefulness of developing a standard for working with problem assets. the presence of such a standard will help harmonize the approaches of banks and regulators to controversial issues of credit institutions' work with problem assets, will provide additional mechanisms for a reasonable risk assessment when determining the amount of reserves formed for problem assets, proven advanced methods for working with problem assets and document forms for such work. in addition, the standard will reduce the costs of financial institutions for audit, legal and consulting services to support work with problem assets and, of course, will increase the trust of counterparties and the business community in banks [5]. the second problem identified involved evasion of debt repayment within the bankruptcy procedure. taking into account the considered features of intentional bankruptcy, important measures to prevent intentional bankruptcy and, accordingly, important aspects of protecting the interests of creditors, it seems, should be stricter conditions for providing loans, a thorough analysis of the accounting and other documentation of the borrower (his guarantors), increased control over the expenditure of credit funds, as well as monitoring the financial and economic activities of the borrower enterprise. in other words, the security for the fulfillment of credit obligations should have a high degree of liquidity [2]. to solve organizational problems, it is necessary to directly involve specialists practitioners in developing the relevant internal documents. in the internal document of the bank regulating the work on collecting overdue debt, it is necessary to prescribe the clarity of coordination of all actions of the insufficiently attentive and detailed attitude towards the borrower; insufficiently deep analysis of the reasons for the formation of overdue debt; failure by the bank to use analytical information provided by the bank of uzbekistan based on the results of ongoing monitoring of enterprises in the non-financial sector of the economy when monitoring the state of the markets in which borrower enterprises operate; lack of preventive actions in working with the borrower. american journal of business management, economics and banking volume 33 february 2025 p a g e | 26 www.americanjournal.org responsible services for collecting overdue debt. in particular, it is recommended to organize the collection of developments of branches, comments of employees who apply these methods in the process of performing their job responsibilities. when working with problem loans, the bank must act as quickly as possible. the complexity of the document approval mechanism and red tape significantly delay the work. to solve this problem, it is possible to propose expanding the powers of specialists working with problem debts by increasing the limit of powers within which they can make decisions. in practice, it often happens that the borrower is in debt to several creditors at once. to solve the problem of lack of time and staff, the bank can combine efforts to collect problem debts for specific clients with other credit institutions in the region that have encountered similar problems with these clients. in addition, expanding cooperation between banks and insurance companies can have a positive effect on reducing the number of bad loans by distributing risk between the two partners. cooperation will also allow banks to exchange information on "bad" clients, which will make it impossible for the same person to take out a bad loan from two different banks. deepening cooperation and developing new interaction schemes, such as insuring individual groups of borrowers from specific threats inherent in this particular category of clients, will minimize credit risks for the bank. timely response to early signs of emerging financial difficulties allows the bank to take preventive measures to improve the situation and protect the bank's interests. these measures must be taken as early as possible, before the situation gets out of control and losses become inevitable. first of all, bank employees must conduct a more in-depth analysis of the borrower, identify the specific reasons that led to the deterioration of the situation. it is important to find out the borrower's position: does he want to repay the debts, can he be trusted, is he able to restore the status quo, having achieved the desired profit? regardless of whether the bank decides to maintain its relationship with the borrower or to abandon them in the future, it is advisable for the bank to develop a corrective plan for further action. in this case it is necessary: find out how deep are the reasons that led to the deterioration of the situation (deterioration of the financial condition of the borrower; failure to comply with contractual obligations under the loan transaction by the borrower's counterparties; improper use of the loan; change in the composition of the management bodies of the borrower-legal entity; presence of force majeure and other circumstances); add this loan to the special watch list; meet with the management of the enterprise, outlining a plan of further actions; if necessary, lower the borrower's credit rating, stop reflecting the loan fee in the bank's income, increase deductions to reserve funds; taking into account the results of the analysis, if it is necessary to change the terms of the loan transaction (revise the size of the credit line up to its closure, use additional collateral, increase the loan interest rate, etc.); find out potential dangers for banks in other areas of interaction with this client; critically analyze all loan documentation, including the loan agreement with the lending terms specified therein, the pledge agreement (from the standpoint of the completeness and cost of collateral); re-evaluate the reliability of all forms of credit repayment security (availability of guarantees, sureties, bills of exchange, etc., in addition to collateral); increase attention to the status of the client's current account; american journal of business management, economics and banking volume 33 february 2025 p a g e | 27 www.americanjournal.org develop a program for changing the debt structure (if necessary, defer credit repayment) [4]. in addition to these measures, the bank must also analyze the turnover of the borrower's bank accounts, check the sufficiency and safety of the security, assess the financial position of the guarantor (surety) at the time of the loan and in the presence of a guarantee (surety) and at the time of the formation of overdue debt, and also assess the completeness of the measures taken by the bank to repay the overdue debt. monitoring must be carried out on an ongoing basis. in most cases, problem loans do not arise suddenly. in practice, there are many signals indicating a deterioration in the financial condition of the borrower and an increased likelihood of non-repayment of the loan. these signals were discussed in the first chapter. to avoid this, banks must periodically conduct objective reviews of loans by the internal control department in order to identify signs of problem loans missed or hidden by the credit department employees. inspections conducted by supervisory and regulatory authorities also very often reveal previously unnoticed problem loans. nevertheless, the first "identifier" of problem loans should be the bank's internal control service. some banks even apply sanctions to credit officers if problems with loans are not noticed by them. however, in order to have as few problem loans as possible, work to prevent problematic situations should be carried out already at the stage of making a decision on issuing a loan with the participation of employees of the internal control service. but even if the loan was issued to a borrower who met all the parameters of creditworthiness, it is necessary to constantly monitor the situation, since his financial situation may change, which will be indicated by alarm signals. the reason for big problems for the borrower is sometimes ordinary forgetfulness. a person missed the date of the next payment, paid the usual amount a couple of days later. but fines have already been accrued for the delay, which are paid off first. an underpayment has arisen, which the client is unaware of. accordingly, fines are accrued on it, which accumulate. and if this process is "launched", a penny misunderstanding can turn into a serious claim. therefore, it is very important to organize preventive actions to prevent the occurrence of a delay due to the simple forgetfulness of the borrower. to do this, it is sufficient to notify the client in advance of the need to make the next payment in accordance with the payment schedule, using any method chosen by the client (sms reminder, email or regular mail, phone call) [3]. in conclusion, it is necessary to focus on the following premise problem loans are an integral part of the banking business. this suggests that any credit institution should have a comprehensive system for working with problem loans, secured by internal regulatory documents. the relevant departments of the bank should constantly monitor borrowers, analyze their financial and economic condition, identify signs of trouble at an early stage, and in the event of detection of a problem loan, apply measures to prevent losses. in turn, commercial banks should organize their activities in such a way that the lending process, not associated with unjustified risks, would generate income, and the collection process would be as effective as possible and would not violate the legal rights and interests of borrowers. references 1. 2020-2025 yillarga mo’ljallangan o’zbekiston respublikasining bank tizimini isloh qilish strategiyasi to’g’risida o’zbekiston respublikasi prezidentining farmoni, 12.05.2020 yildagi pf5992-son https://lex.uz/docs/-4811025 2. giyaev r. a. (2024). banklarda muammoli kreditlar bilan ishlash yo‘llari. tadqiqotlar.uz, 40(5), 179–187. https://tadqiqotlar.uz/new/article/view/4001 https://lex.uz/docs/-4811025 american journal of business management, economics and banking volume 33 february 2025 p a g e | 28 www.americanjournal.org 3. kurbanov s. (2024). optimization and strategy of working with problem debt in banks. socioeconomic phenomena and processes, no. 2, 183-187. 4. semenova a. (2025). ways to improve the organization of a bank's work with problem loans. economy and society, (3-1 (16)), 501-508. 5. togaev s, utkirov a. the impact of human resources on improving the quality of financial services // best journal of innovation in science, research and development. 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 88 www.americanjournal.org methods of goodwill assessment and ways to improve them kasimova sayora karimjon qizi associate professor of the department “appraisal and investments” tashkent state economic university a b s t r a c t k e y w o r d s for many companies, goodwill is the most significant asset, for which such concepts as identifiability and isolation are not typical. goodwill simplifies asset manipulation, but at the same time, neither many accountants nor the management of these companies know how to accurately and correctly evaluate goodwill, since its real value is formed when the organization is sold. but goodwill evaluation is necessary, and goodwill can be evaluated in various ways. the article considers the main methods of goodwill evaluation, suggests ways to improve them and develops its own method for evaluating goodwill. goodwill, intangible assets, evaluation, cost management. introduction before examining the existing evaluation methods, it should be noted that the concepts of "business reputation" and "goodwill" can be used as synonyms, but only if we are talking about the cost evaluation of business reputation. thus, any company in the process of its development reaches a point when it realizes the need to evaluate its own business reputation with high reliability. speaking about the evaluation of the cost of business reputation, we can say with great confidence that in this case the company will calculate the amount of its own goodwill. international financial reporting standards (38 "intangible assets" and others) state that internally created business reputation is not recognized as an asset, since it is not an identifiable resource controlled by the company, which can be reliably evaluated. in other words, a profitable, successfully operating company with strong business ties, with products in demand, constantly increasing its achievements, has no right to put its own goodwill on the balance sheet. and yet, a modern company needs to have a clear idea of how much its reputation is worth at any given moment in time. literature review there are various approaches to defining the concept of "business reputation" in the academic literature. for example, in her work, i.s. vazhenina gives the following definition of this term: it is a dynamic characteristic of a company's behavior that is formed in society over a fairly long period of time. it is formed on the basis of a set of information about how and by what methods an entrepreneurial structure american journal of business management, economics and banking volume 41 october2025 p a g e | 89 www.americanjournal.org builds its behavior in certain situations. in general, business reputation can be defined as a set of opinions of stakeholders (employees, investors, creditors, analysts, authorities, media, etc.) about the advantages and disadvantages of a company, which determines decision-making in relation to it. this set of opinions exists objectively. in practice, business reputation means the "good name" of a company, taking into account its history and age of foundation, image, authority of the founders, and quality of management [1]. in the study, e.m. korotkov understands business reputation as a holistic view of a company as a subject of a certain type of activity [2]. this opinion is formed from the perception and assessment of the results and consequences of this activity by various stakeholders and contact groups. l.g.gabueva determined that the company's reputation is part of the intangible assets that are subordinate to the positive image of the company, the presence of permanent business connections, and brand recognition. the potential of reputation is heterogeneous in its content and depends on the attitude towards the company on the part of buyers, clients, partners, government agencies, as well as on the assessment of the quality and reliability of the products manufactured, the services of the companies, and on the assessment of the trademark, and on the assessment of the level of management [3]. goodwill reflects only part of the capitalized costs of a business combination transaction, which can be disclosed and measured only by selling the company, as indicated by f. piskley [4]. the last fact of recognizing goodwill as capitalized costs is emphasized by e.s. hendriksen and m.f. van breda: at the same time, when a company is purchased, the acquisition and costs must be reflected in the accounting accounts [5]. in american practice, the assets of the acquired company are added to the existing ones, and the residual amount is first distributed, if possible, by adding to the accounting valuations of the assets, bringing them to market values, and the undistributed part is reflected as goodwill. thus, goodwill is defined as an overpayment for the assets of the acquired enterprise. although this surplus of the amount paid over the value of net assets can be called goodwill (the price of the company), it bears only some characteristics of an intangible asset, because in essence it is simply an undistributed part of the value of the assets of the acquired enterprise. research methodology the purpose of this study is to determine the value of goodwill, induce, deduce, harmonize, and consolidate the values of the assets. analysis and discussion of the results there are several approaches to determining the value of goodwill. let's consider the main ones in more detail. 1. according to ifrs, self-created goodwill, that is, goodwill that a company has independently calculated and reported, should not be recognized as an asset, just as self-created trademarks are not recognized. let's say that a company is worth three times more than its net assets, then its business reputation should be recognized as zero, as a result of which the company's reporting will fully comply with ifrs requirements. for example, there is a company whose net assets are $50,000, and it decides to increase the value of its assets in order to obtain a bank loan. it overstates its business reputation by $500,000 and proves that it is already worth $550,000. but this will not play a special role in issuing a loan, since when analyzing the company's financial statements in order to issue it a loan, these $500,000 will be eliminated from the balance sheet. american journal of business management, economics and banking volume 41 october2025 p a g e | 90 www.americanjournal.org 2. the value of a company's business reputation can be determined when the market value of all shares of the company exceeds its net assets. this method can be designated as the evaluation of goodwill "according to the market capitalization indicator" of the company. 𝑮𝑾 = ∑ 𝒎 ∗ 𝑪 − 𝑵𝒆𝒕 𝑨 𝒏 𝒊=𝟏 gw goodwill value; n number of types of issued shares; m volume of issued shares of the company; c share price on the current date; net a value of net assets of the organization. for example, if the number of shares of the company is 70,000 pieces, and the share price is $1, when the value of net assets is $50,000, then the value of goodwill is: gw = 70,000 * $1 $50,000 = $20,000. the disadvantage of this method is that it is applicable only to a certain organizational and legal form a joint-stock company. 3. the next option for assessing goodwill is the "excess profit method". for example, the value of a company's net assets is $100,000, and its annual net profit is $30,000. then the return on investment the return on net assets will be 30% (30,000 / 100,000 * 100%). for example, the industry-wide rate of return is 10%. this means that in order for an organization to receive a net profit of $30,000 in the industry as a whole, it needs to invest: $30,000 / 10% = $300,000. the resulting amount of $300,000 is the estimated net assets of the company, which participated in receiving a profit of $30,000 at a rate of return of 10%. let's determine the company's excess profit, i.e. the excess of the organization's indicators over the industry average: 30% 10% = 20%. let's determine the value of unrecorded assets that contributed to the profit: $300,000 $100,000 = $200,000. this amount can be partially edited. for example, the assessment of bad debtors or reserves for writtenoff goods was incorrect. let's assume that as a result, the company's identifiable assets were found at $40,000. then the goodwill value is: $200,000 $40,000 = $160,000. let's consider another example. let's assume that the industry consists of four enterprises that have the same asset value of $20,000, the same technical level and the same structure. but the profitability of assets for these organizations is different: for enterprise 1 it is 30%, for enterprise 2 – 25%, for enterprise 3 – 15%, for enterprise 4 – 10%. let’s calculate the average profitability: (30% + 25% + 20% + 15%) / 4 = 20%. next, given that the average price of an organization is $20,000, then organization 1 is valued at $20,000 * 30% / 20% = $30,000. from here we determine the value of goodwill for organization 1: $30,000 $20,000 = $10,000. the value of goodwill in the previous example can also be calculated based on this formula, namely: (100,000 * 30% / 10%) $100,000 = $200,000. it should be noted that this formula is simplified by many appraisers. the most complete and accurate formula for the "excess profit method" for determining the value of goodwill looks like this: 𝑮𝑾 = 𝑵𝑶𝑰 − 𝑴𝑨 ∗ 𝑹𝒆 𝑹𝒈 american journal of business management, economics and banking volume 41 october2025 p a g e | 91 www.americanjournal.org noi net operating income from the organization's activities; ma the value of the company's tangible assets; re is the capitalization coefficient of the company's net income from its main activities; rg is the capitalization coefficient of intangible assets. in our opinion, the formula should be changed, otherwise the value of goodwill will be equal to the value of all intangible assets that allowed the company to earn a profit higher than its competitors in the industry: 𝑮𝑾 = 𝑵𝑶𝑰−𝑴𝑨∗𝑹𝒆 𝑹𝒈 − ia noi net operating income from the organization's activities; ma the value of the company's tangible assets; re is the capitalization ratio of the company's net income from its core activities; rg is the capitalization ratio of intangible assets; ia the value of the company's intangible assets. example. let's assume that the following is known about the company: value of tangible assets (ma) = $200,000; value of intangible assets (ia) = $10,000; for the company's equity, the average industry rate of return y = 10%; net operating income (noi) = $35,000; average service life of the company's assets n1 = 25 years; write-off period for intangible assets n2 = 10 years. let's determine the value of the capitalization ratios of intangible and tangible assets using the ring method. the ring method, or its other name "straight-line recapitalization method" means returning the capital that was invested in equal shares annually, the amount of which is equal to the amount of the capital initially invested. the capitalization rate is: r = y + 1 / n n – the number of years of operation of a particular asset. next, we will determine the amount of net operating income of the company generated by tangible assets: noima = ma * rma = $200,000 * (0.1 + 1 / 25) = $28,000. therefore, the company's net operating income generated by intangible assets is: noiia = noi – noima = $35,000 $28,000 = $7,000. we will determine the value of intangible assets: via = noiia / ria = $7,000 / (0.1 + 1 / 10) = $35,000. we will subtract from this amount the value of intangible assets that are recorded on the balance sheet to obtain the amount of goodwill: gw = via – ia = $35,000 $10,000 = $25,000. this method is very often criticized by experts, indicating many errors that occur when using it. the main errors are mainly in the inaccuracy of determining the capitalization coefficients and the amount of net income. however, when using other methods, appraisers are not immune to these errors. having studied many expert opinions, it can be noted that for low-risk companies, it is recommended to use a capitalization coefficient for tangible assets of 8%, and for intangible assets 15%. for high-risk enterprises, it is recommended to set coefficients of 10% and 20%, respectively [6]. if you quite reasonably calculate the industry average rate of capital and carry out all calculations of the capitalization coefficient correctly, then in the end you can get a fairly accurate and satisfactory result. american journal of business management, economics and banking volume 41 october2025 p a g e | 92 www.americanjournal.org to do this, it is necessary to carefully select similar enterprises in order to compare profitability, as well as to increase the reliability of the assessment. an analogous enterprise should be selected based on the following requirements, namely, the analogous enterprise should: produce similar products (works, services); be located in the same area (district, region); have very similar production capacities [7]. 4. another method is the "excess resources method", which is a modification of the excess profit method. the modification of the method is that when calculating the value of goodwill, it is necessary to take into account not only the effect of using own funds, but also attracted funds. taking into account this addition, the formula for calculating the value of goodwill will look like this: 𝑮𝑾 = ( 𝑴 𝑹 − 𝑻𝑨) ∗ 𝐖 m is the company's net profit; r is the industry average return on the company's total assets; ta is the value of the organization's total assets; w is the share of the company's equity in the liabilities structure. let's look at an example. let's assume the following data is known about the company: cost of fixed assets $20,000; cost of working capital $25,000; liabilities $15,000; equity $30,000; net profit $5,000. total $45,000 ($20,000 + $25,000) of funds involved in the business process. the return on advanced capital is 9% ($5,000 / $45,000 * 100%). let's assume that the industry average return on advanced capital, according to the research conducted, is 7%. therefore, the average profit of $8,000 in the industry can be achieved by some enterprise if the amount of funds involved is $35,000 ($500 / 0.07). the amount of excess resources of the company, which are balanced by the "excess asset" is $10,000 ($45,000 $35,000). but at the same time, part of them was formed thanks to borrowed funds and this part does not belong to the organization, will be lost when repaying loans, as well as loans. the share of the company's own funds in the structure of liabilities is 0.78 ($30,000 / $45,000). let's multiply the amount of excess resources of the company by the resulting share to get the value of goodwill the inalienable advantages of the company that are characteristic of it: gw = $10,000 * 0.78 = $7,800. 5. let's consider a goodwill valuation option called "sales volume" valuation. to use this method, you need to know the industry average profitability ratios of companies. the formula for calculating goodwill: 𝑮𝑾 = 𝑵𝑶𝑰 − 𝑸𝒇 ∗ 𝑹𝒒 𝑹𝒈 noi net operating income from the organization's activities; qf the cost of products sold by the company; rq the industry average profitability ratio of sales of manufactured products; rg the capitalization ratio of intangible assets. similar to the previous method, we will slightly transform the formula: american journal of business management, economics and banking volume 41 october2025 p a g e | 93 www.americanjournal.org 𝑮𝑾 = 𝑵𝑶𝑰−𝑸𝒇∗𝑹𝒒 𝑹𝒈 – ia ia is the value of the company's intangible assets. let's give an example. let's assume that the cost of goods sold is $150,000. the value of the company's intangible assets is $12,500. the organization's net operating income is $30,000, and the intangible asset capitalization ratio is 20%. the organization conducted research and found that the average profitability of similar products in the industry is 10%. let's calculate the value of the company's goodwill: via = ($30,000 $150,000 * 0.1) / 0.2 = $75,000. let's subtract the value of intangible assets recorded on the balance sheet from this amount to obtain the value of goodwill: gw = via – ia = $75,000 $12,500 = $62,500. as in the previous methods, the main problem is the difficulty of obtaining external data, namely the industry average profitability ratio. 6. by analogy, we present a formula for assessing goodwill based on the cost of production (works, services): 𝑮𝑾 = 𝑵𝑶𝑰−𝑪𝒇∗𝑹𝒄 𝑹𝒈 ia cf – себестоимость продукции (работ, услуг) компании; rc это средний по отрасли коэффициент рентабельности производственной деятельности. 7. the classic version of the assessment is the balance sheet method. the value of goodwill is determined according to the residual value assessment, i.e. the excess of the amount paid for the enterprise as a whole over the total value of its assets and liabilities, which is reflected in the company's latest balance sheet [8]. let's assume that $100,000 was paid for the company when it was sold, and the net assets are $80,000 (asset value $150,000 liability value $70,000 = net assets $80,000). consequently, the company's business reputation will be equal to: $100,000 $80,000 = $20,000. commenting on the balance sheet method, one cannot help but note its inconvenience and cumbersomeness. 8. there is a point of view to consider the price of goodwill in a new way, namely in the context of management accounting. at the same time, it will be easier for international companies, since with a transparent stock market, market indicators of share value are the mechanism that assesses the value of organizations. however, not all enterprises there list their shares on the stock market, that is, both there and here the value of organizations is determined by the same methods [9]. in addition to quantitative methods, there are also qualitative ones, which are mainly used for the internal purposes of the company. the purpose of qualitative methods is an analytical conclusion that helps to adjust the management of the organization so that it increases both its economic growth and its value among consumers, investors, personnel, competitors and the state. the most common qualitative methods are sociological surveys and expert assessment [10]. the method of sociological surveys implies the opinions of market analysts, media representatives, investors, consumers, and government officials. it is believed that this assessment is accurate, and other methods can only clarify the situation. american journal of business management, economics and banking volume 41 october2025 p a g e | 94 www.americanjournal.org table 1. advantages and disadvantages of goodwill valuation methods № evaluation method advantages disadvantages quantitative methods 1 method of assessing goodwill based on the market capitalization indicator simplicity of calculation based on the current value of the company's listed shares this method is applicable only to companies in the form of a joint-stock company 2 method of excess profit determining the economic effect of business reputation in business common errors associated with inaccurate determination of net income, as well as the capitalization ratio 3 method of excess resources the method is ideal for evaluating a company before selling it the disadvantage is the assumption that the company's profit is provided only by net assets, and that only its own funds create excess resources 4 method of assessing goodwill based on the indicator of the volume of sales of products (works, services) this method is suitable for determining the current assessment of goodwill the calculations do not take into account any specific features of the products (works, services) 5 method of assessing goodwill based on the indicator of the cost of production (works, services) this method is similarly suitable for determining the current valuation of goodwill at present, it is very difficult to reliably determine the value of the industry average indicators that are used in the formula 6 balance sheet method this method allows you to estimate the value of goodwill using the "big pot" method the disadvantage of this method is its cumbersomeness qualitative methods 7 method of sociological surveys determines the opinions of various persons about the company's activities and provides an analytical assessment of goodwill the existence of these methods is determined by the assertion that goodwill is merely an image of a specific company in people's minds, which cannot be quantified; they give an assessment of "positive" and "negative", and the accuracy of the assessment itself directly depends on the sample, that is, they record a change in goodwill for the worse or, conversely, for the better 8 rating assessment (or expert method) ratings are compiled by independent organizations, the company itself does not participate in the compilation of the rating; independent examination when using the rating method, the goodwill ratings of an enterprise by independent organizations are summarized. when forming the rating, various factors that directly affect the company's goodwill are taken into account. these factors include, for example, the relationship between directors, managers and other stakeholders. the methods available today are not universal. it is impossible to say with great certainty that the value of goodwill calculated with their help is a fairly accurate indicator. so far, there is no method that could take into account the reputation of top management, the qualifications of employees and the advantageous location of the company in the value of goodwill. american journal of business management, economics and banking volume 41 october2025 p a g e | 95 www.americanjournal.org conclusions and suggestions in conclusion, it is important to note once again that goodwill in most western companies is the most significant asset, while neither the company's management nor its accountants can correctly assess goodwill. the concept of business reputation has not yet been studied much, since in the structure of the balance sheet of an organization the share of intangible assets is quite small in comparison, for example, with the share of fixed assets and investments. as a result, this type of asset is not given sufficient and due attention. practice shows that intangible assets are assessed much less frequently than real estate, equipment, and businesses. this is the reason for the weak development of the methodology for assessing intangible assets and goodwill in particular, both in the world and in uzbekistan. in this regard, the development of a universal method for assessing the excess value of a company, taking into account its individual characteristics, is an objective necessity. among the main requirements for such a method will be: reliability and accuracy of assessment; ease of use; focus on the specifics of a particular industry and the enterprise itself. references 1. важенина и. с. деловая репутация как конкурентный ресурс компании [текст] // журнал экономической теории, 2006, № 4, с. 134–150 2. коротков э. м. деловая репутация промышленного предприятия в системе рыночной экономики [текст] // вестник южно-российского государственного технического университета (новочеркасского политехнического института), серия: социальноэкономические науки, 2012, № 2, с. 31–38 3. габуева л. г. управление деловой репутацией в менеджменте компаний сферы коммуникационных услуг [текст] // креативная экономика, 2013, № 9 (81), с. 130–135 4. de alessi l. nature and methodological foundations of some recent extensions of economic theory. in: economic imperialism. new york, paragon house, 1987, 345 p. 5. ҳендриксен э.с., ван бреда м.ф. теория букҳгалтерского учета[аccоунтинг тҳеорй]. моscоw, финансй и статистика публ., 1997, 576 c. 6. емельянов а.м. основные этапы эволюции концепций управления стоимостью компаний / а.м. емельянов, е.а. шакина / журнал «корпоративные финансы» № 4(8) – м., 2008. – c. 79-87. 7. ершова е.а. предприятие (бизнес) в современном экономико-правовом обороте / е.а. ершова, к.д. овчинникова. – м.: статут, 2006. – 256 с. 8. мард м.дж., хитчнер д.р., хайден с.д. справедливая стоимость в финансовой отчетности = valuation for financial reporting: fair value measurements and reporting, intangible assets, goodwill and impairment; пер. с англ. – м.: маросейка, 2010. – 248 с. 9. савельев а.в. оценка гудвилла компании как инструмент принятия управленческих решений. дис. канд. экон. наук: 08.00.05 / алексей викторович савельев. – м., 2008. – 175 с. 10. шарков ф.и. константы гудвилла: стиль, паблисити, репутация, имидж и бренд фирмы: учебное пособие / ф.и. шарков. – 2-е изд. – м.: издательскоторговая корпорация «дашков и к», 2012. – 272 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 84 www.americanjournal.org deciphering e-commerce: types, effects, and transactional dynamics dilafruz sodiqova zoxid qizi doctoral researcher at the the university of world economy and diplomacy gofurova.dilafruz.1999@gmail.com a b s t r a c t k e y w o r d s this article delves into e-commerce, analyzing its types, effects, and transactional dynamics in today’s digital world. it explores six key categories, from b2b to c2a, highlighting benefits for consumers and sellers and addressing challenges like market growth and cybersecurity risks. additionally, it examines the evolving transaction process and its impact on businesses and consumers, emphasizing e-commerce’s crucial role in driving global trade and economic growth in the digital age. electronic commerce, e-commerce, types of e-commerce, transactional dynamics, b2b, b2c, c2c, c2b, b2a, c2a, benefits of ecommerce, challenges of e-commerce, cybersecurity risks, market growth, digital landscape, global trade, economic development. introduction in today’s digital age, electronic commerce (e-commerce) stands as a cornerstone of global trade, revolutionizing the way businesses operate and consumers engage with products and services. from the bustling transactions between businesses (b2b) to the seamless interactions between consumers and governments (c2a), e-commerce encompasses a spectrum of transactional dynamics, each with its unique characteristics and implications. this article delves into the types, effects, and transactional intricacies of e-commerce, exploring its transformative potential and the challenges it faces in an increasingly interconnected world. there are mainly six basic types of electronic commerce, as illustrated in figure 1.1.2. these types include business-to-business (b2b), where transactions occur between businesses, and business-toconsumer (b2c), which involves businesses selling directly to consumers. other types include consumer-to-consumer (c2c), consumer-to-business (c2b), business-to-government (b2g), and government-to-business (g2b), each representing different transaction dynamics within the digital economy. american journal of business management, economics and banking volume 24 may 2024 p a g e | 85 www.americanjournal.org figure 1. schematic illustration of the types of the e-commerce based on their characteristics1 1. business-to-business (b2b): this category of electronic commerce involves transactions between companies, where goods or services are exchanged electronically. it is commonly utilized by manufacturers and traditional industrial wholesalers for online trading. 2. business-to-consumer (b2c): in b2c e-commerce, businesses sell products or services directly to individual consumers online. this is the typical online shopping scenario, where consumers browse and purchase items from various retail websites. the internet has greatly expanded this business model, offering a wide range of products such as electronics, books, clothing, and more. consumers enjoy access to detailed product information and competitive prices, along with convenient delivery options. 3. consumer-to-consumer (c2c): c2c e-commerce involves electronic transactions between individual consumers, often facilitated by online platforms provided by a third party. this includes activities like selling personal items on auction websites or trading goods through online classifieds. 4. consumer-to-business (c2b): c2b e-commerce reverses the traditional exchange model by allowing individuals to offer their products or services to businesses. this model is commonly seen in crowdsourcing platforms, where companies seek specific services or products from individuals. examples include freelance services, design competitions, and stock photography websites. 5. business-to-administration (b2a): this category encompasses online transactions between businesses and government entities. it includes a wide range of services, such as tax filing, social services, healthcare administration, and legal documentation. the expansion of e-government initiatives has significantly increased the availability and accessibility of these services in recent years. 1 jain v., malviya b., arya s. an overview of electronic commerce (e-commerce) //journal of contemporary issues in business and government. – 2021. – т. 27. – №. 3. – с. 667. (accessed to 22.04.05) (available at https://www.researchgate.net/profile/vipin-jain13/publication/351775073_an_overview_of_electronic_commerce_ecommerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf ) ty p es o f eco m m er ce business-to-business (b2b) business-to-consumer (b2c) consumer-to-consumer (c2c) consumer-to-business (c2b) business-to-administration (b2a) consumer-to-administration (c2a https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf american journal of business management, economics and banking volume 24 may 2024 p a g e | 86 www.americanjournal.org 6. consumer-to-administration (c2a): c2a e-commerce involves electronic transactions between individuals and government agencies. this includes services like online education, social security benefits distribution, tax filing, and healthcare appointments. these online platforms provide individuals with convenient access to government services and information.2 e-commerce offers numerous benefits for both consumers and sellers alike. from the consumer’s perspective, the primary advantage is the convenience and time-saving aspect. consumers can access e-commerce platforms from anywhere in the world and place orders at any time of day or night. some key advantages for consumers include: • lower prices compared to traditional retail stores. • increased flexibility, allowing purchases to be made 24/7 without the need for physical interaction with the seller. • time-saving, as consumers can buy or sell products at their convenience. • easy access to detailed product information through simple clicks, enabling informed decisionmaking. • convenience of shopping and conducting transactions from the comfort of one's home or office. • ease of switching between different sellers if unsatisfied with a particular company’s service. • access to a wider range of products than what is available locally or nationally. • ability to read product reviews and see what others are buying before making a purchase decision. for sellers, e-commerce offers several advantages as well, including: • increased sales and reduced operational and maintenance costs. • revenue generation opportunities through online transactions. • significant savings on procurement and purchase-related expenses. • enhanced customer loyalty and retention. • reduced transportation costs for delivering products. • improved customer-supplier relationships. • accelerated sales processes. • enhanced internal and external communication. • enhanced brand image and promotion of the company and its products.3 overall, e-commerce has transformed the way businesses operate and interact with customers, offering numerous benefits for both buyers and sellers in terms of convenience, cost savings, and efficiency.4 2 jain v., malviya b., arya s. an overview of electronic commerce (e-commerce) //journal of contemporary issues in business and government. – 2021. – т. 27. – №. 3. – с. 667. (accessed to 22.04.05) (available at https://www.researchgate.net/profile/vipin-jain13/publication/351775073_an_overview_of_electronic_commerce_ecommerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf ) 3 sodikov m. key features of digital advertising development in tourism in uzbekistan. – 2023. https://yashiliqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/download/715/714 4 jain v., malviya b., arya s. an overview of electronic commerce (e-commerce) //journal of contemporary issues in business and government. – 2021. – т. 27. – №. 3. – с. 668. (accessed to 22.04.05) (available at https://www.researchgate.net/profile/vipin-jain13/publication/351775073_an_overview_of_electronic_commerce_ecommerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf ) https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/download/715/714 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/download/715/714 https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf american journal of business management, economics and banking volume 24 may 2024 p a g e | 87 www.americanjournal.org e-commerce, like any other technology, encounters various challenges that affect both buyers and sellers using the internet for business purposes. these challenges include5: • limited growth of the e-commerce market: collaboration between private and public enterprises is crucial to foster growth in the e-commerce industry. joint efforts enhance credibility and support success in e-commerce endeavors. • cybersecurity risks: e-commerce websites face the constant threat of hacking and cyberattacks, leading to financial losses for customers. ensuring system protection and reliability is essential to mitigate these risks. • reluctance of financial institutions: banks and financial institutions in developed countries have been hesitant to actively support the e-commerce market. however, their involvement is necessary to expand e-commerce and address issues like credit card fraud. • cultural differences in purchasing behavior: bargaining deals with suppliers is common in developed countries, posing a challenge for e-commerce adoption in developing nations where such practices are less prevalent. • high internet costs: despite efforts to reduce bandwidth costs, internet prices remain high due to the expenses associated with network delivery and maintenance. • trust issues: establishing trust in electronic transactions is critical for e-commerce success. clear laws and regulations are needed to ensure the accuracy and legitimacy of online transactions, fostering trust among consumers.6 in addition to these challenges, developing countries also face unique obstacles in their e-commerce development, including: • limited access to education. • cultural diversity and adherence to traditional practices. • inadequate infrastructure for online marketing. • insufficient marketing and promotional efforts. • political instability. • higher costs of services and products compared to traditional markets. • limited internet coverage. • disorganized communication networks. • few trusted businesses and enterprises. • lack of direct interaction between buyers and sellers.7 despite these challenges, the e-commerce industry is expected to become a leading sector in electronic business in the coming years. the e-commerce revolution has significantly impacted the transaction industry, opening new markets rapidly and breaking down geographical barriers. it has transformed traditional market systems, leading to improvements in people's lives. while e 5 a. g. khan, “electronic commerce: a study on benefits and challenges in an emerging economy,” type double blind peer rev. int. res. j. publ. glob. journals inc, 2016. (accessed to 22.04.05) 6 sodikov m. digital advertising oasis: qatar’s e-marketing revolution. – 2023. https://yashil-iqtisodiyottaraqqiyot.uz/journal/index.php/ged/article/view/1419 7 dilafruz s. e commerce and benchmarking strategy for industrial enterprise development //евразийский журнал академических исследований. – 2023. – т. 3. – №. 5 part 3. – с. 21-27. https://www.in-academy.uz/index.php/ejar/article/view/14864 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/view/1419 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/view/1419 https://www.in-academy.uz/index.php/ejar/article/view/14864 american journal of business management, economics and banking volume 24 may 2024 p a g e | 88 www.americanjournal.org commerce offers benefits to both customers and sellers, it presents challenges for traditional businesses aiming to maintain sustainability.8 the impacts of e-commerce on business can be categorized into positive and negative aspects. positive impacts include various benefits that businesses derive from engaging in electronic commerce. these benefits encompass opportunities for revenue growth, expanded market reach, reduced operational costs, enhanced customer loyalty, improved supplier management, accelerated production processes, and strengthened value chains: • expansion of market exposure and share. • reduction in operating expenses. • global reach and extended market coverage. • increased customer loyalty. • improved management of suppliers. • acceleration of the production process. • strengthening of the value chain.9 negative impacts include: • direct monetary loss due to fraud and deception. • risk of private data exposure and subsequent losses. • potential business disruptions leading to lost opportunities. • unauthorized access to resources, leading to financial losses.10 the process of e-commerce the process of e-commerce typically involves multiple transactions, as illustrated in figure 1.1.3. it comprises various steps to complete these transactions. for instance, let’s consider a scenario where a retailer, sells a variety of goods and services. another dealer from another country, is considering entering this market. however, a retailer has no plans for physical presence or employees in another country. nonetheless, residents of the country can still purchase goods from them via its website on the internet. to establish an online presence, they can collaborate with an internet service provider to connect its website to the internet. they can either maintain its own web server connected to the provider or rent space on the provider's server or on a third-party server connected to the internet. customers access the internet through local phone connections or direct connections like cable modems. once online, they use web browsers to navigate retailor’s cybermall, select products, and proceed to payment, providing credit or debit card details. upon completion of payment, customers can download digital products or services. for physical goods, the retailer makes shipping arrangements, allowing customers to download payment receipts and shipping information. 8содикова д. analysis of e-commerce factors influencing on economic development //economics and innovative technologies. – 2023. – т. 11. – №. 4. – с. 349-360. https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/360 9 tiwari, sunita, and pratibha singh. "e-commerce: prospect or threat for environment." international journal of environmental science and development 2.3 (2011): 211. https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=02dc9dee46779c543e35f12238a5a03db44cdb2e 10 sui, daniel z., and david w. rejeski. "environmental impacts of the emerging digital economy: the e-forenvironment e-commerce?." environmental management 29 (2002): 155-163. https://link.springer.com/article/10.1007/s00267-001-0027-x https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/360 https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=02dc9dee46779c543e35f12238a5a03db44cdb2e https://link.springer.com/article/10.1007/s00267-001-0027-x american journal of business management, economics and banking volume 24 may 2024 p a g e | 89 www.americanjournal.org this e-commerce process is further detailed in figure 1.1.3. while credit facilities may be offered to customers, transactions usually follow a 'cash' trade cycle, involving immediate settlement via credit cards or e-cash. the internet facilitates various stages of this trade cycle, from searching for goods to making purchases. some sites offer transaction execution and settlement services, with delivery either electronically or through home delivery services. after-sales service forms the final part of the e-commerce transaction. many it providers now offer online support and services. whether or not these follow earlier online transactions varies. figure 1.2 e-commerce process charter.11 conclusion in conclusion, e-commerce offers diverse transactional opportunities across sectors, from b2b to c2a. while it brings convenience and market access, challenges like cybersecurity and cultural barriers persist. nevertheless, with continued innovation and collaboration, e-commerce is poised for growth, shaping the future of business in the digital age. references 1. jain v., malviya b., arya s. an overview of electronic commerce (e-commerce) //journal of contemporary issues in business and government. – 2021. – т. 27. – №. 3. – с. 668. (accessed to 22.04.05) (available at https://www.researchgate.net/profile/vipin-jain13/publication/351775073_an_overview_of_electronic_commerce_e 11 kedah z. use of e-commerce in the world of business //startupreneur business digital (sabda journal). – 2023. – т. 2. – №. 1. – с. 51-60. (accessed to 22.04.2024, available at https://journal.pandawan.id/sabda/article/view/273/259 ) https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://journal.pandawan.id/sabda/article/view/273/259 american journal of business management, economics and banking volume 24 may 2024 p a g e | 90 www.americanjournal.org commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-ecommerce.pdf ) 2. a.g. khan, “electronic commerce: a study on benefits and challenges in an emerging economy,” type double blind peer rev. int. res. j. publ. glob. journals inc, 2016. (accessed to 22.04.05) 3. tiwari, sunita, and pratibha singh. "e-commerce: prospect or threat for environment." international journal of environmental science and development 2.3 (2011): 211. https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=02dc9dee46779c543e35f12 238a5a03db44cdb2e 4. sui, daniel z., and david w. rejeski. "environmental impacts of the emerging digital economy: the e-for-environment e-commerce?." environmental management 29 (2002): 155-163. https://link.springer.com/article/10.1007/s00267-001-0027-x 5. kedah z. use of e-commerce in the world of business //startupreneur business digital (sabda journal). – 2023. – т. 2. – №. 1. – с. 51-60. (accessed to 22.04.2024, available at https://journal.pandawan.id/sabda/article/view/273/259 ) 6. содикова д. analysis of e-commerce factors influencing on economic development //economics and innovative technologies. – 2023. – т. 11. – №. 4. – с. 349360. https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/360 7. dilafruz s. e commerce and benchmarking strategy for industrial enterprise development //евразийский журнал академических исследований. – 2023. – т. 3. – №. 5 part 3. – с. 21-27. https://www.inacademy.uz/index.php/ejar/article/view/14864 8. sodikov m. key features of digital advertising development in tourism in uzbekistan. – 2023. https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/download/715/714 9. sodikov m. digital advertising oasis: qatar’s e-marketing revolution. – 2023. https://yashiliqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/view/1419. https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://www.researchgate.net/profile/vipin-jain-13/publication/351775073_an_overview_of_electronic_commerce_e-commerce/links/60a8d9af45851522bc0aed79/an-overview-of-electronic-commerce-e-commerce.pdf https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=02dc9dee46779c543e35f12238a5a03db44cdb2e https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=02dc9dee46779c543e35f12238a5a03db44cdb2e https://link.springer.com/article/10.1007/s00267-001-0027-x https://journal.pandawan.id/sabda/article/view/273/259 https://iqtisodiyot.tsue.uz/journal/index.php/iit/article/view/360 https://www.in-academy.uz/index.php/ejar/article/view/14864 https://www.in-academy.uz/index.php/ejar/article/view/14864 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/download/715/714 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/view/1419 https://yashil-iqtisodiyot-taraqqiyot.uz/journal/index.php/ged/article/view/1419 american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 56 www.americanjournal.org theoretical foundations of economic crises: causes, forms and consequences бабаева сабинабону давронбек қизи студентка ташкентского государственного транспортного университета a b s t r a c t k e y w o r d s this article examines the theoretical foundations of economic crises as an integral element of the dynamics of the market economy. the key economic schools and their views on the nature of crises are analyzed, the main causes of occurrence, forms of manifestation and consequences for various sectors of the economy are systematized. special attention is paid to the classification of crises by scale, nature and causes, as well as to the examples of crisis phenomena in the world economy. the study is aimed at forming a holistic view of crises as objective phases of the economic cycle and identifying the conditions for overcoming them through rational macroeconomic regulation. economic crisis, cyclicality, forms of crises, causes of crises, macroeconomic instability, anti-crisis policy, world economy, state regulation, theories of crises. introduction an economic crisis is a sharp deterioration in the state of the national or global economy, accompanied by a drop in production volumes, a decrease in investment, an increase in unemployment, a violation of financial stability and a decrease in the standard of living of the population. as an integral element of economic dynamics, crises reflect both internal and external imbalances in the functioning of economic systems. the modern economic reality is characterized by a high degree of interconnectedness and vulnerability of national economies, which increases the relevance of studying the theoretical foundations of crisis phenomena. an in-depth scientific analysis of crises allows not only to understand the causes of their occurrence, but also to develop effective measures to mitigate their consequences. this study is aimed at revealing the essence of economic crises, their classification and analysis of socio-economic consequences accompanying the crisis phases of the economic cycle. the study of economic crises has a long history, and within the framework of various economic schools, their own theoretical approaches to explaining the causes, nature and mechanism of crisis phenomena have been formed. these approaches reflect the features of the historical context, the level of development of economic science and the features of the functioning of economic systems. among the most significant theoretical approaches to the explanation of economic crises are the classical, keynesian, austrian and modern schools. each of them offers its own understanding of the causes and mechanisms of the development of crisis processes. american journal of business management, economics and banking volume 38 july2025 p a g e | 57 www.americanjournal.org classical school. representatives of classical political economy — adam smith, david ricardo, jeanbaptiste say — believed that the market has internal mechanisms of self-regulation. based on say's law ("every supply generates corresponding demand"), they argued that crises are impossible in conditions of free competition, since any imbalances are automatically balanced through the price mechanism. that arose in the capitalist economies of the xix century. a critical revision of these ideas was proposed by k. marx, who interpreted crises as an inevitable consequence of the internal contradictions of capitalism. according to marxist theory, the crisis of overproduction is an expression of the discrepancy between the production capabilities and the consumption capabilities of society, aggravated by the unequal distribution of income. keynesian and neo-keynesian schools. john maynard keynes in his work "the general theory of employment, interest and money" (1936) showed that the market mechanism is incapable of ensuring full employment and stability. post-war period. neo-keynesians, developing the ideas of keynes, included elements of microeconomics in their theory, such as the model of price and wage rigidity, inflation expectations, and intertemporal choice. austrian school. the austrian school, represented by ludwig von mises and friedrich hayek, offered a radically different point of view on the nature of crises. according to their views, government intervention, especially in the credit sphere, distorts the structure of capital. unemployment. the crisis, according to the austrians, is a natural mechanism for cleansing the economy of inefficient enterprises. modern concepts. in particular, great importance is attached to behavioral aspects (the theory of irrational expectations), the institutional environment, the role of financial bubbles and information asymmetry. the model of "financial acceleration", the theory of "debt deflation" (i. fisher), models taking into account the role of leverage and "bubbles" in asset markets allow for more accurate to explain the mechanism of risk accumulation and large-scale recessions in modern economies. economic crises are the result of the combined action of many factors, which can be both internal and external. their interaction in a certain historical, institutional and structural environment leads to a violation of the balanced development of the economy, a sharp decline in business activity and an increase in social tension. depending on the source of occurrence, the causes of crises are usually divided into internal (endogenous) and external (exogenous). the main factors related to each of these groups are discussed below: internal (endogenous) causes: violation of macroeconomic proportions. one of the key internal causes of crises is the imbalance between production and consumption. if the growth rate of output outstrips the growth of household incomes and investment demand, there is a surplus of goods, leading to a drop in prices, a decrease in profitability and, as a result, a reduction in production. imbalances in the distribution of resources. crises can be caused by inefficient allocation of resources between sectors of the economy. for example, overinvestment in the construction sector while ignoring the manufacturing industry leads to imbalances and the risk of bubbles. american journal of business management, economics and banking volume 38 july2025 p a g e | 58 www.americanjournal.org financial, credit and monetary imbalances. excessive credit expansion without proper risk assessment contributes to the accumulation of unsustainable debt in the private and public sectors. such processes often precede banking or debt crises, as happened, for example, in greece in the early 2010s. institutional weaknesses. poor governance, corruption, weak protection of property rights and contractual obligations undermine investor confidence and increase economic uncertainty. this hinders the implementation of effective economic policies and exacerbates crisis processes. external (exogenous) causes global economic shocks. these include sharp fluctuations in world commodity prices, changes in exchange rates, and global changes in interest rates. countries with high export dependence or limited economic diversification are particularly vulnerable to such shocks. geopolitical conflicts and sanctions. international confrontations, trade wars, embargoes and sanctions disrupt logistics, undermine the investment climate and contribute to the isolation of countries from the global economy. pandemics and natural disasters. a prime example is the covid-19 pandemic, which caused a global economic downturn in 2020. restrictions on the movement of people and goods, rising unemployment, falling consumer demand, and supply chain disruptions have triggered economic recessions in many countries. combined causes the most destructive crises, as a rule, have a combined nature. for example, the great depression of 1929-1933 in the united states was caused by overproduction, speculative fever in the stock market, the weakness of the banking system and the lack of effective government regulation. the financial crisis of 2008 was the result of a confluence of internal imbalances in mortgage lending and the global vulnerability of financial markets. as shown in figure 1, its impact was of a global nature, with the depth of the recession varying depending on the level of integration of countries into the global financial system. figure 1. economic decline in the countries of the world by the end of 2008 (the intensity of red color reflects the depth of the decline in gdp and economic activity in relation to 2007) american journal of business management, economics and banking volume 38 july2025 p a g e | 59 www.americanjournal.org thus, economic crises should be considered as the result of the systemic interaction of many factors operating at different levels. their timely identification and assessment make it possible not only to predict potential risks, but also to develop effective measures to prevent or mitigate their consequences. the variety of manifestations of economic crises in different countries and historical periods requires their systematization. the classification of crises makes it possible not only to identify general patterns in their development, but also to select appropriate tools for analysis and measures of economic policy. in modern scientific literature and practice, there are several grounds for classifying economic crises: by the scale of coverage: local crises cover individual regions, enterprises or limited segments of the economy. they can be caused by both management errors and local external shocks (for example, natural disasters). national crises cover the entire economy of a particular country, affecting the main macroeconomic indicators: gdp, inflation, employment, investment and trade. an example is the crisis in argentina in the early 2000s. international crises spread to several countries or regions at the same time, having a systemic impact on the world economy. such, in particular, is the global financial crisis of 2008. by regularity and cyclicity: periodic (cyclical) crises arise with a certain regularity as a phase of the economic cycle. they are most fully described within the framework of the theories of long and short waves (the cycles of juglar, kondratiev, etc.). irregular crises are associated with external, often unpredictable factors, such as geopolitical conflicts, pandemics, and abrupt technological shifts. their nature is characterized by suddenness and a high degree of uncertainty. intermediate crises arise within one economic upswing and are the result of temporary imbalances or failures in management at the micro and macro levels. by the sphere of occurrence financial and credit crises include banking crises (loss of liquidity, bankruptcy of credit institutions), currency crises (sharp devaluation of the national currency), debt crises (inability to service public or private debt). production crises are characterized by a drop in output, a reduction in the utilization of production capacities, a decrease in profitability and investment. sectoral crises affect certain sectors of the economy, for example, agriculture, energy, construction or high-tech. the reasons can be both internal (technological lag) and external (changes in the conjuncture) factors. environmental crises are associated with a violation of the balance between human economic activity and the environment. they manifest themselves in the depletion of natural resources, deterioration of public health and hinder the development of traditional sectors of the economy. american journal of business management, economics and banking volume 38 july2025 p a g e | 60 www.americanjournal.org by the nature of imbalance the crisis of overproduction arises as a result of the production of an excess volume of products with insufficient effective demand. this leads to falling prices, losses, bankruptcies of enterprises and an increase in unemployment. a crisis of underproduction is a shortage of goods and services caused by the destruction of production chains, a shortage of resources or low efficiency of the economy. a structural crisis reflects a discrepancy between the existing economic structure and the requirements of a new stage of development. overcoming such crises requires deep institutional and technological reforms. thus, the forms and types of economic crises vary depending on their sources, scope of manifestation, scale and degree of regularity. this, in turn, predetermines the need for a differentiated approach to their diagnosis and management, which involves the use of interdisciplinary methods of analysis and reliance on scientifically based models of assessment and forecasting. taking into account this diversity, the study of the consequences of crisis phenomena is of particular importance, since they have a complex impact on the functioning of socio-economic systems. crises disrupt not only economic stability, but also affect the sphere of social relations, the institutions of state power, as well as the structure of international interaction. at the same time, the nature and depth of the consequences depend on the nature of the particular crisis, the degree of severity of internal and external imbalances, as well as the ability of the economic system to adapt. the consequences can manifest themselves both in the short term, through a decline in production, rising unemployment and a decrease in investment, and in the long term, through institutional deformations, social stratification and loss of strategic stability. economic impact decline in gdp and manufacturing activity. crises are invariably accompanied by a reduction in output, a drop in investment, a decrease in export earnings and a general decline in economic activity. this is reflected in the negative dynamics of the main macroeconomic indicator, the gross domestic product. growth of unemployment. reduction in production capacity leads to layoffs, an increase in hidden and open unemployment. in the context of prolonged recessions in the labor market, stable negative trends may arise: demotivation of the workforce, degradation of human capital, and growth of shadow employment. devaluation of the national currency and inflation growth. financial crises, especially those accompanied by capital outflows, can lead to a sharp depreciation of the currency and an increase in imported inflation. in conditions of panic and distrust in financial institutions, there is often a loss of savings and the destruction of the domestic financial market. increase in public debt and budget deficit. a decrease in tax revenues, combined with an increase in social obligations, forces states to increase the budget deficit and increase the volume of borrowing, which in the future leads to an increase in the debt burden and a weakening of fiscal stability. social consequences growth of poverty and social inequality. crisis processes, as a rule, most affect the low-income and vulnerable segments of the population. falling incomes, rising prices for essential goods, worsening american journal of business management, economics and banking volume 38 july2025 p a g e | 61 www.americanjournal.org access to medical and educational services lead to an exacerbation of social differentiation and an increase in poverty. exacerbation of social tension. an increase in the level of discontent among the population caused by a decline in the standard of living can lead to an increase in protest sentiments, increased political radicalization, and destabilization of the socio-political situation. deterioration of demographic and humanitarian indicators. long-term crises have a negative impact on demographic behavior: the birth rate decreases, emigration increases, and the health of the population deteriorates. political and international implications loss of trust in state institutions. the impossibility of an effective response to crisis phenomena, corruption, and non-transparency of decisions lead to a decrease in trust in the authorities, which can undermine political stability and the legitimacy of existing institutions. revision of economic policy priorities. many crises become a turning point in the transformation of economic policy. new regulatory measures are introduced, the role of the state in the redistribution of resources is strengthened, and models of taxation and social support are revised. changes in international economic relations. crises often become an incentive to reassess foreign economic strategy, diversify foreign trade, and strengthen economic sovereignty. protectionism may grow and confidence in international institutions may decline. the study of international experience in overcoming economic crises makes it possible to identify effective mechanisms for stabilization and adaptation in conditions of sharp disturbances of economic equilibrium. the practice of the world's leading countries shows that successful anti-crisis strategies, as a rule, combine short-term measures of rapid response with long-term structural reforms. the most striking examples are: anti-crisis policy of the united states the great depression (1929–1933). one of the most studied cases is the economic policy of the united states during the great depression. the administration of franklin roosevelt implemented the new deal program, which provided for public investment in infrastructure, support for farmers, job creation, reform of the financial system and the introduction of social protection. the crisis of 2008. during the global financial crisis of 2008, the us government and the federal reserve system (fed) took a number of unprecedented measures: more than $700 billion was allocated under the tarp (troubled assets relief program), interest rates were reduced to zero, quantitative easing (qe) was introduced, and direct support was provided to the banking and automotive sectors. these measures made it possible to stabilize the financial system, avoid a large-scale recession and begin recovery. the european union: the debt crisis and the policy of fiscal consolidation. in the aftermath of the 2008 crisis, the european union faced an acute debt problem in southern europe. under pressure from germany and other nordic countries, a package of measures was formed: the creation of the european stability mechanism (esm), support from the european central bank (ecb), the american journal of business management, economics and banking volume 38 july2025 p a g e | 62 www.americanjournal.org introduction of an asset purchase program (omt) and the implementation of a tight fiscal policy. it has helped restore confidence in the eurozone, lower interest rates, and strengthen fiscal discipline. the people's republic of china: active state intervention. in 2008, the government announced a 4 trillion yuan stimulus package aimed at developing infrastructure, energy, transport, and housing. central planning, allowed china to maintain high rates of economic growth and strengthen the stability of the economy. the role of international organizations. the international monetary fund and the world bank are actively involved in supporting countries facing crises, especially among developing economies. the provision of credit lines, advisory assistance, and the implementation of structural adjustment programs allow countries to carry out institutional reforms, restore macro-financial stability and gain access to international financial markets. today's global economy is facing unprecedented levels of instability and uncertainty. globalization, technological transformations, intensification of geopolitical contradictions, as well as the frequency of natural and epidemiological shocks form new sources of crisis risks. in these conditions, the importance of a timely and effective anti-crisis policy that can not only stabilize the economy, but also ensure sustainable development in the long term, is increasing. the main challenges of the modern economy: financial vulnerability. high levels of global debt, especially in the private sector, increase the risks of debt and banking crises. the strong interconnectedness of financial markets increases the likelihood of cross-border shocks. political instability and sanctions conflicts. economic policy is increasingly becoming an instrument of geopolitical pressure. sanctions wars, restrictions on access to technology and capital, and the disruption of international supply chains undermine the foundations of global cooperation. threats to digital and technological transformation. on the one hand, digitalization opens up new opportunities for growth, on the other hand, it creates the threat of displacing a significant number of professions, increasing structural unemployment, increasing social inequality and cyber risks. environmental and epidemiological risks. climate change, the depletion of resources, the growth of environmental disasters, as well as outbreaks of pandemics such as covid-19, for example, clearly demonstrate the fragility of modern economic systems in the face of global intangible threats. directions of modern anti-crisis policy: flexible macroeconomic stabilization. the need for prompt use of fiscal and monetary policy instruments. this includes fiscal stimulus, lowering interest rates, providing liquidity to banks, and supporting employment. social protection and reduction of inequality. modern anti-crisis policy should provide for targeted assistance to the population, especially vulnerable groups, the development of employment programs, support for small and medium-sized businesses, as well as access to education and healthcare. digital transformation of the economy. investing in digital infrastructure, e-platforms, developing digital skills, and protecting citizens' digital rights are key to a sustainable recovery and competitiveness. american journal of business management, economics and banking volume 38 july2025 p a g e | 63 www.americanjournal.org green economy and sustainable development. the development of renewable energy, eco-transport, industrial modernization and energy efficiency form the basis of an environmentally sustainable economic model and reduce dependence on raw materials. international coordination. today's crises are global in nature, and overcoming them requires coordinated efforts by states. it is necessary to intensify dialogue within the framework of international organizations – the international monetary fund, the world trade organization, the group of 20 largest economies of the world, the united nations – to exchange experience, coordinate measures and prevent new shocks. economic crises, despite their destructive power, are an integral part of the functioning of a market economy. they reflect the internal contradictions of economic systems, indicate imbalances between supply and demand, production and consumption, internal and external flows of resources. crises act not only as challenges, but also as mechanisms for adapting, purifying and reformatting economic structures. the article presented a comprehensive classification of crises by scale, regularity, nature of violation of proportions and scope of manifestation. various theoretical approaches are considered, from classical and keynesian to austrian and behavioral, which allow for different interpretations of the causes and nature of crises. internal and external factors that cause crisis phenomena are identified, and their consequences for the economic, social and political life of society are considered. an analysis of international experience has shown that successfully overcoming crises requires an active state policy, flexibility of regulatory tools, timely diagnosis of threats and broad institutional support. international cooperation is of particular importance, especially in an era of global challenges. modern economic realities require a transition to a model of sustainable, inclusive and innovative development. anti-crisis policy should be based on the principles of predictability, transparency, social justice and technological renewal. only such an approach can minimize risks, increase the stability of economic systems and lay a solid foundation for long-term growth. references 1. marx k. capital. critique of political economy. moscow, politizdat publ., 1978. 895 p. 2. keynes j. moscow, general theory of employment, interest and money. — m.: gelios arv, 2002. 352 p. 3. hayek f. a. money theory and cycle. moscow, irisen publ., 2008. 240 p. 4. mises l. human activity. treatise on economic theory. moscow, sotsium publ., 2005. 895 p. 5. roosevelt f. d. new course: collection of speeches and speeches. moscow, mezhdunarodnye otnosheniya publ., 1990. 320 p. 6. stiglitz j. e. globalization and its discontents. — new york: w.w. norton & company, 2002. — 304 p. 7. reinhart c. m., rogoff k. s. this time is different: eight centuries of financial folly. — princeton: princeton university press, 2009. — 496 p. 8. international monetary fund. world economic outlook. — washington, d.c.: imf, 2023. — 218 p. 9. oecd. economic outlook. volume 2023. — paris: oecd publishing, 2023. — 320 p. 10. world bank. world development report. — washington: wb, 2023. 295 p. american journal of business management, economics and banking volume 38 july2025 p a g e | 64 www.americanjournal.org 11. kazakov v. v. velikaya depressa i krizisy s pozitsii teorii delovogo tsikla [the great depression and crises from the standpoint of the theory of the business cycle]. — 2009. — № 11(1). — s. 41–47. 12. khuraliyeva n. e. economic crises: types, causes of occurrence and consequences: course work. — krasnodar: kuban state university, 2020. — 29 p. 13. menegaz f. 2007–2009 world financial crisis [electronic resource]. — mode of access: https://commons.wikimedia.org/wiki/file:2007-2009_world_financial_crisis.svg (accessed 10.07.2025) https://commons.wikimedia.org/wiki/file:2007-2009_world_financial_crisis.svg american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 116 www.americanjournal.org human resource accounting and firm profitability in nigeria: analysis of nigerian breweries plc syder, inuadume daniel (ph.d), department of accounting, university of port harcourt. inuadume syder@uniport.edu.ng. akandu, chituru justice (ph.d), audit unit, university of port harcourt. eskandu@yahoo.com. a b s t r a c t k e y w o r d s triggered by the corporate goal to brew the world from barley to bar and identified the input of human resource at it. the study looked at how human resource accounting affected the profitability of businesses with emphasis on nigerian breweries plc. disclosure of employee training cost, employee healthcare and employee welfare was used to measure human resource accounting, while profit after tax was employed to measure firm profitability. ex post facto design was adopted to collect historic economic events of the firm for behavioural analysis. data were obtained from annual reports from 2015 to 2024 by content analysis. econometric models and residual estimation procedures were employed with the aid of e-views software. the analytical procedures involved descriptive statistics with jacque-bera test of data series, stationarity test to ascertain normality with augmented dickey fuller and phillips-perron, heteroskedasticity test with breusch-paga-gregory model, multiple regression and hypothetical test. the results indicate the log of employee training cost impacts significantly on log of profit after tax. similarly, log of employee healthcare cost impacts significantly on the log of profit after tax. however, the log of employee welfare cost impacts insignificantly on the log of profit after tax. the study concludes that investment in accounting for human resources significantly affects profitability, although the dimension of employee welfare was insignificant. it was therefore recommended that despite setbacks in measurement, human resource accounting practices should be integrated in the business model and financial reporting model of nigerian breweries plc as it impact positively on the firm profitability. profitability, human resource, accounting, investment american journal of business management, economics and banking volume 34 march 2025 p a g e | 117 www.americanjournal.org introduction the nigerian breweries plc. had contributed immensely to the nigerian economy on diverse responsible fronts since inception in 1946. abubakar and lamidi (2021) affirmed that the firm made a paradigm shift in the nigerian beer market by introducing high quality standards, strategically competitive brands, innovative input, massive job creation, huge revenue generation, influential marketing strategies, corporate social responsibility initiatives, community and environmental sustainability. spurred by the corporate responsibility to brew a better world from barley to bar, the largest brewing company in nigeria sustained a seventy nine year effort of strategic business cost leadership and market leadership despite the intermittent upsurge of socio-economic, political and environmental challenges in nigeria; such as: inflationary trend, foreign exchange rate, interest rate, other monetary policy issues, recession, covid-19, insecurity, and other factors influencing business objectives negatively. nigerian breweries annual report (2021), states that the company launched her first landmark product, star larger beer with a brewery at lagos in 1949, next was at aba in 1957, kaduna in 1963, ibadan in 1982 and other diverse locations in due course. the business entity consistently reported sound financial performance and healthy financial position with laudable market capitalization as three hundred and thirty seven billion naira (n337.1 billion) in 2022; despite the volatile business operating environment. pham, chu, hoang and lai (2022) recognized human resource as the source of the laudable financial performance and value in any business entity. the effectiveness and efficiency that translates in commendable business performance is largely attributable to the contributions of human resource team. the accounting for the cost of investment in the human resources as well as the related economic benefits that flow to the entity by their input therefore will make the corporate reporting process faithful representative. the users of accounting information provided in nigerian breweries plc. annual report would need the human resource accounting disclosure for informed investment decision. rabiu (2022) argued that because the international financial reporting standards and related national reporting laws are not readily apparent, business entities reveal different accounting information about human resources in their annual reports. this circumstance has far reaching decision making implication for users of accounting information and the reporting entity which cash in on it to disclose voluntarily but limited information. micah, ofurum and ihedinihu (2012) posit that the companies’ statement of financial position do not reflect the significant investments made to train and retrain quality staff; instead, they are deducted from the period's revenue in order to reduce income and, as a result, the value of the company. some previous studies have spotted the lag in standards for provision on human resources accounting and its reporting gap. such are: ijeoma, and aronu (2013), enofe, mgbame, otuya and ovie (2013), edom, inah and adanma (2015), ovedje and iserien (2021), onyeukwu, ihendinihu and nwachukwu (2021), ogodor and olaniyi (2022), ogunbiyi-davies, alao, aremu and olalere (2023). this background made the study on nigerian breweries plc's human resource accounting and business profitability essential. 1.2 research questions and hypotheses to actualize the predetermined aim, the following research questions were asked. what is the impact of employee training cost on the profit after tax of nigerian breweries plc? how does employee healthcare cost impact on the profit after tax of nigerian breweries plc? what is the impact of employee welfare cost on profit after tax of nigerian breweries plc? consequently, the following hypotheses were tested to proffer answers to the questions raised. american journal of business management, economics and banking volume 34 march 2025 p a g e | 118 www.americanjournal.org h01: the profit after tax of nigerian breweries plc is not significantly impacted by employee training costs. h02: the profit after tax of nigerian breweries plc is not significantly impacted by employee healthcare costs. h03: the profit after tax of nigerian breweries plc is not significantly impacted by employee welfare costs. literature review 2.1 theoretical framework: these theories were considered apt to anchor the theoretical explanatory aspect of the study. 2.1.1human capital theory: generally, the human capital theory considers productive increase and efficiency as products of training of employee who acquire skills, knowledge and competence for business survival. the proponents of the theory, gary s. becker and theodore schultz in 1964 at chicago university had a study which expounded the deep relationship between investment in employee education, training, on the job experience and increase in productive performance. they emphasized that expenditure in physical assets such as: machinery is same as expenditure in human capital, such as employee training, education, healthcare because both result in increase in productive performance. the physical asset enhances performance so does the human asset acquires innovative knowledge to enhance business performance. 2.1.2 resource-based theory: a theory advanced by jay b. barney in 1991 on strategic managerial discipline, was concerned with core basis of competitive advantages of business organization as results from unique resources of an entity. according to komakech, ombati, kikwatha and wainaina (2024), companies' resources and capabilities, which are valuable, uncommon, hard to replicate, and nonreplaceable, give them a competitive edge. similarly, lubis (2022) affirmed that to sustain competitive advantages in dynamic market environment, the internal resources and capabilities are key, such as: human resource, other company assets, innovative and intangible assets. these resources at the disposal of nigerian breweries plc include the human resources that brew competitive advantages despite the evolving dynamic market environments. 2.1.3 legitimacy theory: john dowlying and jeffery pfeffer in 1975, who advanced the ideals of the theory; submit that business entity often engaged in social contract with its socio-cultural and economic environment at which operation is located. a company obtains input resources from the society and returns its performance by products and services. the business is required to engage in legitimate business which operations, activities, policies and actions are in congruence with the norms, value, laws, ethics, legislations, rule and regulation of the society. martens and bui (2023) claim that legitimacy is a time-dependent concept, meaning that what is deemed legitimate today might not be in the future because of changing social values. accounting disclosure of certain information is required of limited liability companies in sections of companies and allied matters act as well as nigerian exchange limited. a firm legitimacy and transparency is evaluated to the extent these requirements adherence. american journal of business management, economics and banking volume 34 march 2025 p a g e | 119 www.americanjournal.org 2.2 conceptual framework 2.2.1 human resource accounting: human resources are identified among business pivotal assets that underlie the attainment of the predetermined corporate objectives. the human asset of business encompasses a framework of core intellectual competence, innovative skills, technical knowhow, specialized knowledge, abilities and performance experience that underlies the effectiveness, efficiency and competitive advantages which drive the business successes. the intensive turbulence that often characterizes the competitive market and related economic dynamics are absorbed by the managerial acumen of human resource team. afolabi (2014) observes that the increasing technical complexity of modern company and the time required for workers to develop competent abilities and appropriate experience in diversified functional area makes human resource a crucial resource in our economy. consequently, ogodor and olaniyi (2022) assert that in order to accomplish corporate goals, appropriate accounting disclosure, and higher investment are necessary because human resources are a major factor in performance and organizational success. the accounting disclosure of investment in the human resource for recruitment, orientation, remuneration, training, promotion, safety and healthcare necessitate the special branch of accounting. lawal in ogodor and olaniyi(2022) affirms that current knowledge-based economies understand the importance of investing in human capital, whose newly acquired skills, inventiveness, and creativity serve as a driving force behind businesses' exceptional performance. in the past, organizations concentrated more on fixing deviation after it was produced than on preventing it; currently, the ideal practice is accounting for the human recourse in operation among the operation. therefore, according to the american accounting association (1973), human resource accounting is the process of identifying, measuring, and sharing information about human resources with interested parties. onyeukwu, ihendinihu and nwachukwu (2021), submit that this area of accounting supports the idea that human capital should be recognized and capitalized rather than being treated as an expense charge against revenue as is the traditional accounting practice. sveiby (2004) believes that the concepts of intellectual, human and structural capital are comparable to other assets. he argued that since businesses engaged human resources to create future revenue, they should be capitalized rather than expensed when valuing a company. consequently, adeyinka, kayode and akinmulegun (2019) argue that the suitable dimensions of human resource accounting include: staff training cost, staff healthcare cost, staff welfare cost, staff remuneration cost et cetera. similarly, ogundajo, nwaobia, uhuaba and phillips (2023) affirmed that the costs of salaries, benefits, directors' compensation, and employee training and development were appropriate ways to either capitalize or expense investment costs. however, tortorella, nascimento, caiado, posada, and sawhney (2019) submitted that the cost of staff development or training should be capitalized since it is a capital item; but van-driel (2019) believes that costs related to human resources ought to be disclosed as expenses under the category of human resources overheads. these dimensions are objectively employed to measure the independent variable. employee training cost: employee training cost is specifically concerned with investment in employees to acquire the right skills, knowledge, competence, ability and appropriate behavioural pattern towards the job. it is an organizational effort towards employee competence to handle complex and innovative jobs. shu-rung and chun-chieh (2017) underlined that in order to gain a competitive edge, corporate organizations all over the world depended on workers' increased abilities, skills, and american journal of business management, economics and banking volume 34 march 2025 p a g e | 120 www.americanjournal.org knowledge. in a bid to develop the desired skills, knowledge and capability; employees are trained and retrained periodically. business managers do not aim to improve the employees only but encourage commitment towards the job. employee healthcare cost: fundamental healthcare practices at occupational environment attract financial cost savings. the medical facilities, clinical centres and related scheme are provision to promote health and safety conscious environment. it proactively provides swift medical response to cases of occupational injury and illnesses. some business organizations do perceive healthcare and safety as an essential segment of healthy workforce to attain productivity. however, proactive firms adopt policy on the provision of hospitals and clinical facilities for provision of swift healthcare services. it became imperative to top management strategic plans to include healthcare scheme, clinical policies, safety programmes and security-oriented culture in the organization to advert cost escalating injuries and illness condition. the investment and implementation of these healthcare schemes propel staff wellbeing and business success. employee welfare cost: welfare cost portrays the proportion of investment in staff on other motivational strategy employed to stimulate productivity. it encompasses the non-remunerative aspects gifts, fringe benefits, incentives and other packages that translate in earnings that accompany employees’ remunerative benefits. 2.2.2 firm profitability profitability is a fundamental index for performance measurement. it clearly explains how efficiently the management of business entity had utilized resources within strategic policies to generate returns, earnings or gains. stefea (2012) argues that the amount of revenues in excess its expenses describes profitability. dugguh, aki, and oke (2018) stated that the management's capacity to generate profits from sales is assessed using profitability ratios. such ratios include: gross profit margin, net profit margin, return on assets, return on equity, et cetera. ideally, profit margin often incorporates profit after tax as the numerator. profit after tax therefore is the proxy for measuring profitability in this study. profit after tax: profit after tax portrays an earning realized for the year after excluding the operating expenses; such as: administrative expenses, finance cost or interest expense and company’s income tax. it is a significant level of financial performance assessment that had considered various critical obligations and claims before reporting profit. owolabi, obiakor and okwu (2011) portray the profit as an outcome following consideration of the costs associated with sales, administration, distribution, and all other pertinent expenses, 2.3empirical reviews onyekwelu and ironkwe (2012) examined the effect of human resource accounting on corporate financial performance of insurance companies quote on nigeria stock exchange for the period 20122017. an ex post facto design was employed. secondary data were obtained and analyzed with least square regression method. the result showed that training cost had significantly positive effect on return on assets and equity, but number of staff and increment in staff salaries had a significantly negative effect on return on assets. based on the result, it recommended that insurance firms should do more of capacity building training, development and motivation of personnel to put in their best for the american journal of business management, economics and banking volume 34 march 2025 p a g e | 121 www.americanjournal.org growth of the organization. similarly, micah, et al. (2012) examined the relationship between firm financial performance and human resource accounting disclosure of companies in nigeria. five year financial data from 2005-2009 of fifty two companies across all sectors on nigeria stock exchange were considered by a simple random sampling technique. descriptive, correlation and regression statistical techniques were used for analysing the data. the results showed that combined effects of firm financial performance accounted the variation in human resource accounting disclosure. human resource accounting and return on equity have a positive relationship. disclosure posits that a rise in return on equity incentivizes companies to disclose human capital data in order to build credibility with stakeholders, improve external reputation, and foster legitimacy. the study concludes that human resources accounting information are significant to decision makers in the era of knowledge base economy. the study recommends regulatory intervention of accounting standards setting process for human capital reporting in nigeria. also, asamu, et al. (2020) examined the reporting and disclosure of the human resource assets of manufacturing companies enlisted on the nigerian stock exchange and the extent to which it affects financial performance. an ex post facto research design was employed. secondary data were obtained and analyse using descriptive and inferential statistics. the results showed that profitability of the firms were influenced by operational performance. it was concluded that remuneration and incentives have significant relationship with operational and financial performance. again, ovedje and iserien (2021) studied the effect of human resource accounting on financial performance by employing samples from listed manufacturing firms in nigeria between the periods of 20112020. the ex post facto design and descriptive statistic designs were adopted for the study. relevant data of primary nature were collected and analyzed. the results showed that employee size and directors’ remuneration significantly impact on the financial performance of selected manufacturing firms in nigeria. employee size evidently increases financial performance of the firms. directors’ remuneration tends to decrease financial performance. hence, it was concluded and recommended that performance-based pay system for directors should be considered less acceptable. besides, onyeukwu, et al. (2021) explored the link between human resource accounting and financial performance of microfinance banks in nigeria. ex post facto design was employed for the study. data were obtained from published reports of the banks and analyzed. the findings showed that personnel cost had significant effect on both net profit and return on equity. but personnel cost has insignificant effect on return on assets of the microfinance banks. it was recommended that relevant accounting and legislative bodies should provide uniform approach for the measurement and reporting of human resource in microfinance bank.also proper accounting policies should be specified for the amortization of investment in human resources. furthermore, ogunbiyi-davies, et al. (2023) examined human resources accounting and financial performance of food and beverage companies in nigeria. staff training and development cost as well as staff welfare and safety cost was used to measure human resource accounting while return on assets was used to measure financial performance. secondary panel data was obtained from the firms and analyzed with the aid of e-views version 10. the results indicated that staff training contributed to business performance but staff safety cost did not impact on financial performance. 3.1methodology the study employed an ex post facto design to permit the expression of relation between the variables. econometric specification model and residual estimation procedures were used for data analysis. american journal of business management, economics and banking volume 34 march 2025 p a g e | 122 www.americanjournal.org secondary data were obtained from the annual reports of the company on content analytical approach. the relevance data span from (2015 2024) accounting periods. e-views application was used to undertake analysis on relevant data diagnostics: descriptive statistics with jacque-bera test, stationarity test with augmented dickey-fuller and phillips-perron model, heteroskedasticity test on breuch-pagan gregory model, co-integration test and multiple regressions were carried out to test the formulated hypotheses. 3.2model specification: the functional expression of the variables is shown as: pat = f(etc, ehc)………………………………..equ1 the functional equation was rewritten in mathematical and econometric form as: pat = β0 + β1etc + β2ehc + β3ewc………………………….equ2 patit = β0 + β1etcit + β2ehcit + β3ewcit + et ……………….equ3 the econometric model was re-written in logarithmic equation as: logpatit = β0 + β1logetcit + β2logehcit + β3logewcit + et……………equ4 where: pat= profit after tax etc = employee training cost ehc = employee healthcare cost ewc = employee welfare cost log = logarithmic (logpat, logetc, logehc, logewc) β1-2 = coefficient of the independent variables t= time period in analysis i=firm in analysis e=stochastic error 4.1result and discussion presentation of variables table 1: descriptive statistics to ascertain normality of data series lpat letc lehc lewc mean 16.87015 14.41973 13.82859 14.92452 median 16.94463 14.50476 13.75213 14.98009 maximum 17.61097 14.95056 14.56248 15.31697 minimum 15.83382 13.84730 13.50585 14.10147 std. dev. 0.560379 0.314695 0.293405 0.334451 skewness -0.391014 -0.221173 1.625295 -1.483000 kurtosis 2.159286 2.533485 5.072925 4.838471 jarque-bera 0.549321 0.172211 6.193062 5.073803 probability 0.759830 0.917497 0.045206 0.079111 sum 168.7015 144.1973 138.2859 149.2452 sum sq. dev. 2.826221 0.891294 0.774779 1.006715 observations 10 10 10 10 american journal of business management, economics and banking volume 34 march 2025 p a g e | 123 www.americanjournal.org result interpretation: from table 1; the descriptive statistic result indicates that using jarque-bera probability value against 5% level of significance. the data series: log of profit after tax (lpat), log of employee training cost (letc) and log of employee welfare cost (lewc) are normally distributed as jarque-bera probability value is higher than 5% level of significance. however, log of employee healthcare cost (lehc) is not normally distributed. table 2: stationarity test to ascertain normal distribution. variables aug. dickey-fuller: pv philips-perron:pv remarks at 5%level of sig. lpat 0.0020 0.0035 integrated at order 2 letc 0.0199 0.0046 integrated at order 2 lehc 0.0469 0.8150 integrated at order 1 lewc 0.0039 0.0001 integrated at order 1 result interpretation: from table 2; stationarity test result show that using augmented dickeyfuller probability value against 5% level. log of profit after tax (lpat) and log of employee training cost data series were integrated at second difference (order 2), while log of employee healthcare cost (lehc) and log of employee welfare cost were integrated at first difference (order 1). table 3: heteroskedasticity test of variables heteroskedasticity test: breusch-pagan-godfrey f-statistic 0.191738 prob. f(3,6) 0.8983 obs*r-squared 0.874823 prob. chi-square(3) 0.8315 scaled explained ss 0.562791 prob. chi-square(3) 0.9049 test equation: dependent variable: resid^2 method: least squares date: 03/07/25 time: 14:15 sample: 2015 2024 included observations: 10 variable coefficient std. error t-statistic prob. c -2.145198 3.948135 -0.543345 0.6065 letc 0.092578 0.236448 0.391537 0.7089 lehc -0.045506 0.242751 -0.187460 0.8575 lewc 0.102000 0.208024 0.490329 0.6413 r-squared 0.087482 mean dependent var 0.082774 adjusted r-squared -0.368777 s.d. dependent var 0.164950 s.e. of regression 0.192982 akaike info criterion -0.163262 sum squared resid 0.223453 schwarz criterion -0.042228 log likelihood 4.816312 hannan-quinn criter. -0.296036 f-statistic 0.191738 durbin-watson stat 1.961643 prob(f-statistic) 0.898309 american journal of business management, economics and banking volume 34 march 2025 p a g e | 124 www.americanjournal.org from table 3, heteroskedasticity test result indicates statistical evidence to suggest that data series are free from heteroskedasticity problem. the model has not violated the assumption of constant variance. as probability value (chi-square3) = 0.8315 is higher than 5% level of significance. table 4: multiple regression test of the lpat, letc, lehc, lewc dependent variable: lpat method: least squares date: 03/06/25 time: 14:33 sample: 2015 2024 included observations: 10 variable coefficient std. error t-statistic prob. c 6.184686 7.598828 0.813900 0.4468 letc 1.697567 0.455082 3.730241 0.0097 lehc -0.804441 0.467214 -1.721785 0.0359 lewc -0.178814 0.400376 -0.446615 0.6708 r-squared 0.707120 mean dependent var 16.87015 adjusted r-squared 0.560681 s.d. dependent var 0.560379 s.e. of regression 0.371426 akaike info criterion 1.146239 sum squared resid 0.827743 schwarz criterion 1.267273 log likelihood -1.731195 hannan-quinn criter. 1.013465 f-statistic 4.828744 durbin-watson stat 2.053925 prob(f-statistic) 0.048515 from table 4; multiple regression results indicate that the model estimation residuals suggest a statistical positive and significant relationship between log of profit after tax (lpat) and the explanatory variables (letc, lehc, lewc) logs of employee training, employee healthcare and employee welfare. test of hypotheses h01: the profit after tax of nigerian breweries plc is not significantly impacted by employee training costs h02: the profit after tax of nigerian breweries plc is not significantly impacted by employee healthcare costs h03: the profit after tax of nigerian breweries plc is not significantly impacted by employee training costs table 5: summarized results of hypothetical test: multiple regression results no hypotheses tested pv result 5% sig h01 lpat of nig. breweries plc is not significantly impacted by letc 0.0097 0.05 h02 lpat of nig. breweries plc is not significantly impacted by lehc 0.0359 0.05 h03 lpat of nig. breweries plc is not significantly impacted by lewc 0.6708 0.05 american journal of business management, economics and banking volume 34 march 2025 p a g e | 125 www.americanjournal.org from table 4 and tables 5, the regression result of hypothetical test show that there is a positive and significant relationship among the variables in the estimation model. r-squared (0.7071) explains the strength of relationship as very strong. specifically on table 5, log of employee training cost shows a significant impact on log of profit after tax (pv=0.0097). also, log of employee healthcare cost indicated a significant impact on log of profit after tax (pv=0.0359). conversely, log of employee welfare cost demonstrated an insignificant impact on log of profit after tax (pv=0.6708). 5.1 summary of findings, conclusion and recommendation an objective view at the results of first and second hypothetical test would direct attention to the ideals of human capital theory. the first test provides statistical evidence to demonstrate that log of employee training cost impacts positively and significantly on the log of profit after tax of nigerian breweries plc. similarly, the second test reveals statistical evidence to show that log of employee healthcare cost impacts positively and significantly on the log of profit after tax of nigerian breweries plc. the scenarios lent credence to the ideals of human capital theory which emphasized that as human assets enhance productivity as physical assets enhance productivity. it justified the laudable essence of investment in human capital assets to earn returns on capital employed. the significant impact underlies the investment in employee periodic training to acquire the required innovative knowledge for improved productivity, efficiency and profitability in nigerian breweries plc. it also emphasizes on the core input on healthcare concerns for employees who manipulate, coordinate and manage the other business resources strategically towards the predetermined corporate objectives. a prolong absence of human capital team in operation due to the illnesses would amount to gross competitive disadvantages in operational target achievement, efficient input processing and proficient output performance. the result of the second hypothetical test explained how nigerian breweries plc integrates the employee healthcare practices in strategic business policy to sustain the health of employees. conversely, the third hypothetical test empirically suggests that log of employee welfare cost impacts positively but insignificantly on the log of profit after tax of nigerian breweries plc. this outcome demonstrates the ideals of legitimacy theory which insists that corporate norms, ethics and values should be in congruence with the rule, regulations, norms and social values of the people. the peoples encompasses: customers, supplier, employees, host community and general populace. the corporate entity’s legitimate operation is measures from dealing in consonance with the social laws, norm and values expectation. such social value compliance is expected of nigerian breweries plc on employee welfare with human resource accounting practices. the laudable human and social-oriented programmes on corporate social responsibility and sustainability practices among sponsoring sporting events, promoting education, community development, etc. these human-oriented services are broadly practiced to the external world with limited attention to the employee team on welfare. therefore, the study concludes that investment in employee training and healthcare impacts positively and significantly on profit after tax of nigerian breweries plc, although the empirical result on employee welfare had insignificant impact on profit after tax of nigerian breweries plc. it was recommended that nigerian breweries plc should integrate these human resource accounting practices in the business operation model and policy framework to enhance implementation as it impacts significantly on profitability. american journal of business management, economics and banking volume 34 march 2025 p a g e | 126 www.americanjournal.org references 1. abubakar, a., & lamidi, r. 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(2011). investigating liquidity-profitability relationship in business organization: a study of selected quoted companies in nigeria. british journal of economic, finance and management sciences, 1(2), 11-29. 22. rabiu, a. (2022). human resource accounting disclosure index: the need for an alternative approach, international journal of multidisciplinary and current educational research, 4(1),251254. 23. stefea, c. (2012). firm profitability. journal of entrepreneurship, 10(1), 133-149 24. sveiby, k.e.(1997). the new organizational wealth. san francisco: berrett-koehler . 25. sveiby, k.e.(2004). the measurement of intangible assets. san francisco: berrett-koehler. 26. tortorella, g., nascimento, d., caiado, r., posada, j. g. a., & sawhney, r. (2019). how do different generations contribute to the development of a learning organization in companies undergoing a lean production implementation? the learning organization, 27(2), 101-115. 27. van-driel, h. (2019). financial fraud, scandals, and regulation: a conceptual framework and literature review. business history, 61(8), 1259-1299. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 46 www.americanjournal.org the constructivist analysis of comprehensive chineseuzbek relations (2017-2023) masharipov miraziz 3-year student of international relations faculty majoring in political science university of world economy and diplomacy a b s t r a c t k e y w o r d s the article reviews chinese-uzbek relations, focusing on distinct spheres of cooperation, namely economic, cultural, security along with the participation in international organizations. by using the constructivist framework, the study highlights the way shared identities and social constructs have shaped bilateral relations. through the analysis of statistics, official agreements and historical exchanges this article sets a goal to showcase profound ways in which constructivism has influenced the dynamics of chinese-uzbek relations. the research explores the evolving nature of cooperation in the areas provided and emphasizes the strategic significance of partnership in light of regional stability and mutual prosperity. bri, china and uzbekistan trade and cooperation zone, sco, han dynasty, zhang qian, timurid empire, tang dynasty, the strategic partnership agreement (1998), hu jintao, confucius institute in tashkent, chinauzbekistan youth exchange program, un. introduction from the silk road connections of ancient times, the intriguing relations between china and uzbekistan in international relations have graduated to a modern strategic partnership that incorporates economic, cultural, and security dimensions. the bilateral relationship has changed profoundly since uzbekistan's independence from the soviet union in 1991, reflecting changes in the balance of power in central asia and the expanded influence of china across the eurasian continent. this current research therefore explains how legacies from the past, cultural links, and contemporary interests in geopolitics come together to explain this complex relationship between these two countries, especially with respect to their partnership and how it influences regional stability and development. the relevance of the research is also especially well-timed against the background of unprecedented changes that central asia has been going through, with china's bri and a shift in the dynamics of great power competition. uzbekistan is of strategic importance to china because it is the most populous country in central asia and also has historically played a major cultural and commercial role. moreover, the recent acceleration of economic cooperation, as evinced by the $14 billion bilateral trade by 2023, and the creation of the china-uzbekistan trade and cooperation zone in 2017, points to the timeliness of the analysis. the main research question that this paper addresses is: how do constructed identities and shared norms shape the evolution of china-uzbekistan relations, and what implications does this have for american journal of business management, economics and banking volume 32 january 2025 p a g e | 47 www.americanjournal.org regional dynamics? in the comprehensive answering of this central question, the following subsidiary questions have to be taken into consideration: first, how do historical and cultural ties influence contemporary diplomatic relations? what are economic interests and initiatives, such as bri, in the advance of the two countries' cooperation, and what is their significance? what is the role and impact of security-related interests and concerns for regional stability? and finally, within this framework, what implications are there for how uzbekistan will balance its relationships with other major powers, mainly russia and the united states? theoretically, this research is based on the constructivist approach, by which social constructs, identity, and international norms set a state's behavior. this conceptual approach allows for an in-depth analysis of how the self-view of both countries and their mutually developed understanding influence their respective diplomatic strategies. the research combines historical analysis, examination of diplomatic documents, analysis of economic data, and assessment of cultural exchange programs within a mixedmethods approach. special attention is paid to how both nations construct their interests and identities through bilateral interactions and multilateral forums like the shanghai cooperation organization. the relationship between china and uzbekistan is important to understand for several reasons: it shows how middle powers navigate their relations with rising global powers in an increasingly multipolar world, how china extends its influence in central asia, which bears upon china's foreign policy strategy, and helps explain the shifting dynamics of regional integration and cooperation in central asia a region whose strategic importance is growing. without the systematic analysis of this bilateral relationship, there would be major gaps in the understanding of various critical issues: the nature of the change in power relations in central asia, the effectiveness of china's strategies for diplomatic and economic engagement, and the role of historical and cultural ties in modern international relations. policymakers, in the absence of such analysis, would lack important insights necessary to deal with the complex dynamics of central asian geopolitics effectively. the paper is organized into five major sections. the second section, after this introduction, presents the historical context and theoretical framework, discussing how the evolution of china-uzbekistan relations reflects aspects of international relations theory, in particular, constructivism. the third section discusses economic cooperation and encompasses trade patterns, investment flows, and the influence of bri. the fourth section discusses security cooperation and cultural exchange in order to explore how these elements complement the economic links. the last section synthesizes findings and discusses implications for regional dynamics and international relations theory. the paper, therefore, via the structured analysis undertaken, is located at the interface of scholarly inquiry into, as well as policy formulation concerning, china's engagement with the central asian states and broader implications for regional stability and development, drawing special emphasis upon constructed identities and shared interests that underpin international relations. theoretical framework the analysis of sino-uzbek relations calls for a careful selection of basic theoretical frameworks that could, in particular, be useful in capturing the complication of the bilateral relations between them. against this backdrop, the paper then considers two prominent approaches in the area, namely poststructuralism and constructivism. the respective comparative strengths and weaknesses of each approach are then analyzed against explaining the nature of their dynamics. american journal of business management, economics and banking volume 32 january 2025 p a g e | 48 www.americanjournal.org post-structuralism emphasizing the deconstruction of language, meaning and identity provides a nuanced lens for understanding international relations. first, the post-structural approach more often focuses on discourse while negating material factors. this would strongly fall short in applying a discursive analysis where economic interests, trade agreements, and geopolitical strategies are between china and uzbekistan. for example, the belt and road initiative manifests the very physical form that china's economic longings about central asia take-an issue hardly captured by purely discursively framed approaches. the material level of this interaction becomes an important point that needs attention in such dynamic analysis. it also tends to relegate the question of power in the relations between states to the periphery. in the case of sino-uzbek relations, this is manifested by the economic leverages that china has to influence the decisions and policies of uzbekistan. a post-structuralist approach may fall short of explaining how this power actually functions in practical ways, while concentrating on the fluid nature of identities and overlooking the concrete influences of power relations. furthermore, the contextual limitations of post-structuralism are seen in trying to understand the historical and cultural links between china and uzbekistan. the close historic relations along the silk road and contemporary cultural flows will be important to their relations, but these facets might be obscured by overreliance on discourse about abstract levels. also, post-structuralism neglects the states' agency as a rational actor all too often. this proactive agency in managing its relations with china, russia, and western countries is probably what uzbekistan's diplomacy would be undertaking, which a post-structuralist perspective would fail to grasp. the lack of focus on agency is probably what restricts the theory in explanation. finally, the excessively theoretical framework of post-structuralism is bound to lead to a divorce of interpretation from the real-world implications. practical aspects, such as concrete diplomatic negotiations or economic agreements, are very important for understanding the intricacies of chinese-uzbek relations, yet they sometimes get generalized in such a way as to mask their importance. in contrast, constructivism provides a better prism through which to assess chinese-uzbek relations. as a theory, constructivism explains the role of social constructs, identities, and the importance of international norms. it provides a balanced approach by integrating both material and ideational factors. the theory postulates that states are influenced not just by their material interests but also by the identities and interests developed through interactions1. more detailed understanding of how china and uzbekistan perceive one another and how such perceptions are entailed in their foreign policy approaches is given by constructivism. constructivism can address the said aspects to the historical and cultural relations due to the silk road, mutual interests in security and economic development. this theory also emphasizes the role of states acknowledging that uzbekistan actively manages its relationship with china while balancing ties with other powers. in addition, constructivism’s emphasis on the evolution of identities and norms closely corresponds with the dynamic nature of international relations in central asia. it might explain how such emerging narratives and identity both china and uzbekistan have been building in the light of regional and global restructuring processes. in sum, while post-structuralism may be rich in insight into the complexity of meaning and identity, it is less effective in attempting to explain chinese-uzbek relations because it does not deal with 1 international affairs forum. (n.d.). constructivism in international relations. international affairs forum. american journal of business management, economics and banking volume 32 january 2025 p a g e | 49 www.americanjournal.org material realities, power dynamics, and agency. constructivism, though integrative, offers wider frameworks that encompass the nuances effectively in these interactions, which makes it more suitable for analysis in this context. historical background the connections between china and uzbekistan go far deeper than the silk road, a route of trade exchange and cultural interaction that was initiated several centuries ago. this network of pathways used to exchange goods on land linked china all the way to the mediterranean during the times when it was possible, including silk, spices, and precious metals, along with ideas and cultural practices. during the han dynasty-from 206 bce to 220 ce-chinese envoys like zhang qian laid routes and developed trade relations with central asian cultures2. in the 8th century the region turned into a center for the spread of islam and a fusion of persian, arab and turkic cultures. the timurid empire (13701506) based in samarkand, enriched the cultural framework, fostering interactions between chinese and uzbek merchants3. during the tang dynasty (618-907), the development of trade relations gave chinese merchants and diplomats an opportunity to form a link directly with central asia4. uzbekistan represented a highly important cultural and commercial center, with such cities as samarkand and bukhara. at that particular moment in history, this cross-cultural exchange laid down the background for mutual influences that have survived to be traced even nowadays in their cuisines, architectures, and languages. the spirit of the silk road continues to echo in present relations, as both countries contemplate reworking those historic relations into some new initiatives. such interaction is well reflected in various archaeological sites of uzbekistan through artefacts found, such as textiles and ceramics, depicting both chinese and local artistic expressions. since its independence in 1991, uzbekistan has pursued the redefinition of foreign relations with china. the official diplomatic relations were finally established in 19925. this marked the beginning of a strategic partnership between them. the strategic partnership agreement laid down in 1998 set the stage for expanding political, economic, and cultural cooperation6. this partnership was driven more by the ambitions of economic growth on the part of uzbekistan and the eagerness of china to secure energy resources and greater involvement in central asia. early into the 2000s, these regional threats of security and economic instability in the region became relevant again for china and uzbekistan. the strategic location of uzbekistan has turned it into a vital player in china’s overall central asian strategy resulting in efforts to improve connectivity and trade. this 2005 visit to uzbekistan by chinese president hu jintao showed that confidence, eventually culminating in several agreements after this visit and thus giving a way forward to the beginnings of future cooperation7. 2 unesco. (n.d.). uzbekistan | silk roads programme 3 waugh, d. c. (2010). expedition magazine | the silk roads in history. 4 lumen learning. (n.d.). trade under the tang dynasty. 5 embassy of the republic of uzbekistan in the united kingdom. (2023). uzbekistan-china: the centuries-old foundations of modern successful cooperation. 6 xiong, g. (2011). mutual trust and cooperation have an effect on bilateral relationship. china daily. 7 embassy of the people's republic of china. (2005). hu jintao holds talks with uzbek president islam karimov. american journal of business management, economics and banking volume 32 january 2025 p a g e | 50 www.americanjournal.org economic cooperation the trade between the two states reached about $14 billion by 2023, steeply compared to the preceding years.8 such growth enabled different factors, for example: improvement in cooperation under the bri and among other joint projects. besides the bri, the china-uzbekistan trade and cooperation zone, established in 2017, has also been highly instrumental in industrial cooperation and facilitating trade. more than 100 chinese enterprises have been attracted to this zone, thus facilitating technology transfer and creating thousands of jobs in uzbekistan9. furthermore, the construction of renewable energy projects such as solar and wind facilities demonstrates the dedication of both countries to sustainable development. by 2023, the renewable energy capacity of uzbekistan would have been scaled up, and by 2030, one-quarter of the total amount of energy is planned to be derived from renewable sources 10. these are meant not just to meet energy needs but also to be in tune with world trends toward environmentally friendly economies. the volume of trade and investment has been on a constant rise, reflecting the broader trend in economic integration for mutual benefit. china is turning out to be one of the major trading partners for uzbekistan, with much-needed capital and technology for modernization, while uzbekistan is trying to diversify its economy and dependence on traditional markets. the analysis of chinese-uzbek relations national identities are also bound to play their part in shaping diplomatic relations. uzbekistan, as the leading country in central asia, projects its foreign policy and interaction with china. the self-concept and diplomacy of uzbekistan have deep roots in the historical narrative of being a bridge between east and west. the above identity cements its place in the negotiations and cooperation with the prc, while uzbekistan tries to position itself as a regional player able to balance the relationships with several major countries, including the russian federation and the united states. on the other hand, the way china perceives itself as a rising global power influences its approach to uzbekistan. china sees uzbekistan as more than just a partner, it is also considered a strategic ally in strengthening china’s geopolitical power in central asia. the nature of their interactions is shaped by the interplay of countries’ identities creating a relationship based on mutual respect and shared aspirations. uzbekistan’s recent efforts to position itself as a hub for trade and investment in central asia are in line with china’s broader goals in the region. by promoting itself as a central player uzbekistan seeks to attract foreign investment and boost its economic profile aligning with china’s goal of expanding belt and road network. the cooperation between china and uzbekistan is predominantly based on constructed interests involving economic development and regional stability. for both states, economic growth is in priority as shown in their collaborative projects. mutual norms consisting of noninterference in internal affairs as well as respect for sovereignty are the factors facilitating partnership. these norms are particularly important in a region where historical grievances and power dynamics often make diplomatic relations more complex. 8 embassy of the republic of uzbekistan in malaysia. (2024). infographics: uzbekistan's trade with china in 2023. 9 khitakhunov, a. (n.d.). economic cooperation between uzbekistan and china. eurasian research institute. 10 international energy agency. (2022). a solar energy roadmap for uzbekistan by 2030: solar energy policy in uzbekistan: a roadmap. american journal of business management, economics and banking volume 32 january 2025 p a g e | 51 www.americanjournal.org for instance, uzbekistan's emphasis on sovereignty rhymes with the chinese principle of noninterference, hence setting an appropriate environment for cooperation. convergence of interests and norms in this respect underlines how constructivism provides the framework through which to understand the dynamics of their relationship beyond mere transactional interactions. indeed, recognizing mutual benefit did pave the way for a better dialogue between the two countries. various bilateral committees and working groups are instrumental in the maintenance of continued discussions on trade, security, and cultural exchange11. this represents their commitment to the building of a relationship based on constructively defined interests favoring the long-term objectives of the two countries. the influence of external actors russia and the united states have a significant influence on the identities and interests of both china and uzbekistan. uzbekistan’s historical ties with russia form a complex landscape as the country navigates its relationships with both china and russia. the influence of china in central asia inspires uzbekistan to be strategic, using a balance of relations with russia while continuing further cooperation with china. for example, this sensitive balance is manifested in the very participation of uzbekistan in the shanghai cooperation organization. while china and russia are in the driving seat of the sco, uzbekistan attempts to use this multilateral platform to express its interests and strengthen its regional position this scenario illustrates how external factors determine the identity and interests of countries supporting constructivist perspective on chinese-uzbek relations. in addition, the united states’ interest in central asia introduces another layer of complication. as the united states’ target is to offset china’s influence in the region, uzbekistan’s task consists of carefully navigating its relationships with all three states. this strategic positioning enables uzbekistan to maximize its leverage and guarantee that it can extract the maximum advantages from its partnerships. case studies cultural cooperation the foundation of the china-uzbekistan relationship has been cultural cooperation, relying on common historical ties and aiming at the development of mutual understanding. such a partnership has been strengthened through numerous measures that would help facilitate cultural exchange, educational collaboration, and artistic cooperation. among such initiatives, one of the most popular is the confucius institute in tashkent, which opened in 2017. it serves as a place where both the chinese language and cultural traditions are taught in uzbekistan. by 2023, it has taken more than 1000 students in classes of the language with programs from beginner to advanced12. besides the language classes, the institute runs various cultural workshops, shows chinese movies, and even culinary master classes that allow students to get acquainted with the culinary art. various events are organized, such as gatherings of the chinese new year and the mid-autumn festival, which all join the participants together in a community of appreciation. these events are avenues for cultural exchange, whereby the uzbek people get the chance to experience traditional chinese music, dances, and food. 11 ministry of foreign affairs of the people's republic of china. (2023, november 21). the first foreign ministers' strategic dialogue between china and uzbekistan is held in beijing. 12 tashkent state university of oriental studies. (n.d.). uzbek-chinese institute of confucius. american journal of business management, economics and banking volume 32 january 2025 p a g e | 52 www.americanjournal.org the next urgent element in the cultural sphere has become the youth exchange programs. projects within the china-uzbekistan youth exchange program develop plans on the exchange of students for enabling the young generation to study in each other's countries. in 2023, under this program, 300 uzbek students were given a chance to travel to china whereas chinese students have taken a part in internships and cultural immersion experience in uzbekistan13. security cooperation security is also the point of cooperation between states taking into account the rising risks in the face of globalization. both countries encounter shared security threats such as terrorism, extremism and drug trafficking particularly from groups namely the east turkestan islamic movement (etim) their joint initiatives especially under the framework of sco are directed to address these challenges and maintain regional stability. sco carried out a combined series of exercises called "peace mission 2023" in the territory of russia where both countries took part. working out strategies against terrorists, providing for border security, humanitarian aid, and much else-a true test for military contingents from china and uzbekistan, plus representatives of the other sco members14. security cooperation between china and uzbekistan is not confined to purely bilateral initiatives; both sides have actively taken part in regional discussions aimed at consolidating stability in central asia. both nations have supported the peace processes in afghanistan, well aware of the spillover consequences of instability onto their own borders. in the previous year, china and uzbekistan co-hosted a security conference that convened regional stakeholders to discuss collaborative approaches against terrorism and drug trafficking. participation in the united nations within the un, china and uzbekistan work together on a range of global issues comprising development, security and climate change. as a un member, uzbekistan has aligned its’ policy with that of china’s positions on several critical matters like counter-terrorism and regional stability. china supports uzbekistan’s initiatives in the un aimed at promoting sustainable development goals (sdgs) and fostering cooperation in central asia15. both countries stand for a multipolar world and underline respect for national sovereignty flowing from their common statements and resolutions in the un. their cooperation includes peacekeeping; each of these countries makes its contribution to international peacemaking activities. this in turn increases their engagement with the un, strengthening thereby their commitment to multilateralism and cementing their diplomatic relationship, which further cements the constructed identities of both states as responsible members of the international community. conclusion the sino-uzbek relationship viewed through the prism of constructivism rests on a combination of identity and constructed interests built upon shared norms. equally convoluted in both ways, their history from the long-standing silk road up to today is a base from which they interact with one 13 uzreport. (2023). over 300 uzbek students to study at chinese universities. 14 shanghai cooperation organization. (2022, august 26). joint communique of the shanghai cooperation organization defense ministers' meeting (24 august 2022, tashkent). 15 yunusova, z. (2024). current state and prospects for the development of uzbek-chinese relations of comprehensive strategic partnership. embassy of the republic of uzbekistan to the republic of kazakhstan. american journal of business management, economics and banking volume 32 january 2025 p a g e | 53 www.americanjournal.org another. this historical context not only calls for mutual respect but also determines their diplomatic approach: both nations attach great importance to cultural and economic cooperation. the uzbek identity positions uzbekistan as a regional leader in central asia, at the same time guiding its foreign policy toward active engagement with china, combined with balancing in respect to other powers, most notably russia and the united states. it may be regarded as a form of strategic maneuvering that reflects an invoked constructed identity intended for use by uzbekistan in its pursuits of sovereignty and maximization of geopolitical leverage. meanwhile, the status of china as an emerging global player shapes its approach to central asia, within which uzbekistan is considered a very important partner in the belt and road initiative. this is not just about an economic project; instead, this is a very wide-ranging narrative of development goals that appeal to the aspirations for modernization and economic diversification of uzbekistan. mutual interests in these relations are to be seen in increasing trade volumes and the establishment of jointly administered economic zones-in other words, constructed interests translating into real dividends. however, challenges remain unresolved at present, especially over the issue of regional security in which instability in afghanistan, including an extremist threat, is so strong that a need has arisen for a collective response. the joint military exercises of china and uzbekistan, as well as participation in multilateral forums, epitomize that both countries view the imperatives of addressing these concerns as binding. this is a strategic imperative and one in which the constructed norms of mutual respect for sovereignty and non-interference that both nations have come to embrace are strongly reinforced. meanwhile, the prospects for further cooperation in areas of renewable energies and technology transfer are promising. both countries are increasingly aware of the need for sustainability and economic resilience, with interests rapidly changing around the global economy to greener economics. it thus seems that a joint commitment is reflected in topical challenges while the partnership widens and is adaptive to future change. overall, constructivism thus provides a crystal-clear framework of analysis through which chineseuzbek relations indicate excitedly how aspects of identity and common norms inform interaction. in this respect, the two countries interact unceasingly engage in an endless process of convolutions of their partnership, cultural understanding, integration of economies, and putting joint efforts on security. the fluctuating nature of this relationship within the evolving geopolitical dynamics does call for further research to enable both nations to understand effective ways of using their constructed identities and histories to meet the challenges of an open world. references. 1. international affairs forum. (n.d.). constructivism in international relations. international affairs forum. https://www.iaforum.org/content/viewinternal_document.cfm?contenttype_id=5&contentid=8773 2. unesco. (n.d.). uzbekistan | silk roads programme https://en.unesco.org/silkroad/countriesalongside-silk-road-routes/uzbekistan 3. waugh, d. c. (2010). expedition magazine | the silk roads in history. https://www.penn.museum/sites/expedition/the-silk-roads-in-history/ 4. lumen learning. (n.d.). trade under the tang dynasty. https://courses.lumenlearning.com/sunyhccc-worldcivilization/chapter/trade-under-the-tang-dynasty/ https://www.ia-forum.org/content/viewinternal_document.cfm?contenttype_id=5&contentid=8773 https://www.ia-forum.org/content/viewinternal_document.cfm?contenttype_id=5&contentid=8773 https://en.unesco.org/silkroad/countries-alongside-silk-road-routes/uzbekistan https://en.unesco.org/silkroad/countries-alongside-silk-road-routes/uzbekistan https://www.penn.museum/sites/expedition/the-silk-roads-in-history/ https://courses.lumenlearning.com/suny-hccc-worldcivilization/chapter/trade-under-the-tang-dynasty/ https://courses.lumenlearning.com/suny-hccc-worldcivilization/chapter/trade-under-the-tang-dynasty/ american journal of business management, economics and banking volume 32 january 2025 p a g e | 54 www.americanjournal.org 5. embassy of the republic of uzbekistan in the united kingdom. (2023). uzbekistan-china: the centuries-old foundations of modern successful cooperation. https://www.uzembassy.uk/news/1037 6. xiong, g. (2011). mutual trust and cooperation have an effect on bilateral relationship. china daily. http://global.chinadaily.com.cn/a/201104/19/ws5a2e4b25a310eefe3e9a334a.html 7. embassy of the people's republic of china. (2005). hu jintao holds talks with uzbek president islam karimov. http://mu.china-embassy.gov.cn/eng/sgxw/200505/t20050526_6482312.htm 8. embassy of the republic of uzbekistan in malaysia. (2024). infographics: uzbekistan's trade with china in2023.https://uzbekembassy.com.my/eng/news_press/economy/infographics_uzbekistans_trade_wit h_china_in_2023.html 9. khitakhunov, a. (n.d.). economic cooperation between uzbekistan and china. eurasian research institute. https://www.eurasian-research.org/publication/economic-cooperation-between-uzbekistanand-china/ 10. international energy agency. (2022). a solar energy roadmap for uzbekistan by 2030: solar energy policy in uzbekistan: a roadmap. https://www.iea.org/reports/solar-energy-policy-inuzbekistan-a-roadmap/a-solar-energy-roadmap-for-uzbekistan-by-2030 11. ministry of foreign affairs of the people's republic of china. (2023, november 21). the first foreign ministers' strategic dialogue between china and uzbekistan is held in beijing. https://www.mfa.gov.cn/eng/wjbzhd/202312/t20231204_11194148.html 12. uzreport. (2023). over 300 uzbek students to study at chinese universities. https://uzreport.news/society/over-300-uzbek-students-to-study-at-chinese-universities 13. tashkent state university of oriental studies. (n.d.). uzbek-chinese institute of confucius. https://tsuos.uz/en/konfutsiy-nomidagi-ozbek-xitoy-instituti/ 14. shanghai cooperation organization. (2022, august 26). joint communique of the shanghai cooperation organization defense ministers' meeting (24 august 2022, tashkent). https://eng.sectsco.org/20220826/911015.html 15. yunusova, z. (2024). current state and prospects for the development of uzbek-chinese relations of comprehensive strategic partnership. embassy of the republic of uzbekistan to the republic of kazakhstan. https://uzembassy.kz/en/article/current-state-and-prospects-for-the-development-ofuzbek-chinese-relations-of-comprehensive-strategic-partnership https://www.uzembassy.uk/news/1037 http://global.chinadaily.com.cn/a/201104/19/ws5a2e4b25a310eefe3e9a334a.html http://mu.china-embassy.gov.cn/eng/sgxw/200505/t20050526_6482312.htm https://uzbekembassy.com.my/eng/news_press/economy/infographics_uzbekistans_trade_with_china_in_2023.html https://uzbekembassy.com.my/eng/news_press/economy/infographics_uzbekistans_trade_with_china_in_2023.html https://www.eurasian-research.org/publication/economic-cooperation-between-uzbekistan-and-china/ https://www.eurasian-research.org/publication/economic-cooperation-between-uzbekistan-and-china/ https://www.iea.org/reports/solar-energy-policy-in-uzbekistan-a-roadmap/a-solar-energy-roadmap-for-uzbekistan-by-2030 https://www.iea.org/reports/solar-energy-policy-in-uzbekistan-a-roadmap/a-solar-energy-roadmap-for-uzbekistan-by-2030 https://www.mfa.gov.cn/eng/wjbzhd/202312/t20231204_11194148.html https://uzreport.news/society/over-300-uzbek-students-to-study-at-chinese-universities https://tsuos.uz/en/konfutsiy-nomidagi-ozbek-xitoy-instituti/ https://eng.sectsco.org/20220826/911015.html https://uzembassy.kz/en/article/current-state-and-prospects-for-the-development-of-uzbek-chinese-relations-of-comprehensive-strategic-partnership https://uzembassy.kz/en/article/current-state-and-prospects-for-the-development-of-uzbek-chinese-relations-of-comprehensive-strategic-partnership american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 53 www.americanjournal.org scientific-theoretical and organizational-legal foundations of investment activity financing amanova dilafruz o’tkurovna tgeu “valuation and investments” department phd candidate at the foundational stage a b s t r a c t k e y w o r d s this article examines the foundations of investment financing in uzbekistan, its theoretical aspects, and promising directions. investments play a key role in the country's economic development, contributing to industrial growth and improving the population's living standards. the article examines current trends, theoretical concepts, and organizational foundations of investment financing, taking into account uzbekistan's national context and international experience. the article also discusses existing problems and suggests ways to solve them, including the role of equity financing (share financing) in expanding investment opportunities. investments, investment financing, economic development, uzbekistan, investment policy, equity financing. introduction in the context of economic globalization, investment activity is an important element of every country's economy. this activity contributes to the expansion and development of industrial production in the country, as well as stable and progressive economic growth. therefore, each country supporting investment activity develops a roadmap reflecting its specific goals in this regard. in the law of the republic of uzbekistan "on investments and investment activities" dated december 25, 2019, the concept of "investments" is explained as follows: investments are risks taken by an investor in social sphere objects, entrepreneurship, scientific and other types of activities aimed at making a profit. these are tangible and intangible assets and rights to them, including intellectual property rights, as well as reinvestments. various plans and programs have been developed in our country to attract investments in various spheres, expand their flow, and stimulate investment activity. it is worth noting here the decree of the president of the republic of uzbekistan dated january 28, 2022, "on the development strategy of new uzbekistan for 2022-2026" № pd-60. this decree contains specific plans to increase our country's investment attractiveness and improve the business climate. among them, special attention is paid to organizing the annual “tashkent international investment forum”, which aims to demonstrate uzbekistan's investment potential to local and foreign investors and establish mutual dialogue with them. these actions to develop investment activity require a american journal of business management, economics and banking volume 33 february 2025 p a g e | 54 www.americanjournal.org complete understanding and explanation of its essence, including an analysis of equity financing as an essential investment mechanism. literature review the concept of investment emerged in the mid-20th century. due attention was paid to this issue by neoclassicists such as a. pigou, i. fisher, and r. hawtrey. they argued that economic development is impossible without investment processes. this is because investments are the beginning of capital goods production and are inseparable from the consumer goods market. aggregate demand includes investments, the growth of which increases this same demand and, accordingly, the volumes of national production [1]. the term "investments" unlike others in economic literature, has many interpretations and meanings. thus, in macroeconomics, investments usually refer only to those investments of funds that lead to an increase in gross domestic product and, therefore, the real sector of the economy [2]. many foreign theorists focus directly on capital as the main component of the concept of investment. j. keynes understands investments as an increase in the value of capital property, regardless of whether the latter consists of fixed, working, or liquid capital [3]. one of the significant aspects of investment financing is equity financing, which allows companies to attract funds through the issuance of shares. adam smith emphasized the importance of dividing labor to enhance business profitability. in the modern context, equity financing plays a similar role by distributing ownership among multiple investors, thereby improving financial sustainability and enabling capital-intensive projects[4]. according to d.k. zhou, "income should exceed expenses. if the opposite occurs, there will be no enterprise growth." we can accept this idea as true; indeed, growth and profitability are observed in those enterprises where income exceeds costs [5]. research methodology as research methodology, this article used analytical and statistical methods; tables and graphs were widely used, as well as mathematical methods. analysis and discussion of results the analysis revealed several key aspects of investment financing in uzbekistan. the country's legislative framework, enshrined in the constitution (article 53 on guarantees of property rights), has undergone significant changes thanks to new laws on investments and investment activities, publicprivate partnership, and the digital economy. investment sources in uzbekistan can be classified according to various criteria: american journal of business management, economics and banking volume 33 february 2025 p a g e | 55 www.americanjournal.org table 1. main sources of investment financing in uzbekistan1 financing source description examples in uzbekistan advantages disadvantages enterprise own funds profit, depreciation charges, other internal reserves reinvestment of profits by large companies, own savings of small and medium businesses independence from external factors, lower cost of financing limited volume for large projects, dependence on enterprise's financial condition bank loans loans provided by commercial banks working capital loans, investment loans for various economic sectors relative accessibility (depending on lending conditions), variety of products dependence on interest rates and bank credit policies, collateral requirements foreign direct investment (fdi) foreign capital investments directly into enterprise capital investments in oil and gas sector, automotive industry, textile industry, it sector capital inflow, technology transfer and management experience, access to external markets dependence on global economic situation and investment climate, possible political risks venture financing investments in innovative and startup projects at early development stages developing venture funds, focus on it startups, "green" energy projects financing high-risk but potentially profitable projects, support for innovation high risk level, long investment return horizon, need for expert project evaluation equity financing (share financing) raising capital by issuing and selling shares on the stock exchange ipo (initial public offering) of some companies, corporate bond issuance expanding investor base, diversification of financing sources, increased transparency disclosure and listing requirements, market volatility government financing budget funds, state funds (e.g., infrastructure development funds) investments in infrastructure projects, state support programs for priority sectors support for strategically important sectors and projects, implementation of largescale initiatives limited budget funds, bureaucratic procedures, possible inefficiency in distribution crowdfunding collective project financing through online platforms developing crowdfunding platforms, support for social and creative projects, startups access to financing for wide range of projects, community involvement, market demand testing limited financing volume for large projects, legal uncertainty, fraud risks public-private partnership (ppp) cooperation between state and private sector for infrastructure projects ppp projects in road construction, energy, transport, healthcare, education risk and resource sharing, private capital and expertise attraction, accelerated project implementation complex agreement structure, need for careful legal documentation, need for transparent procedures statistical analysis shows that in 2024, the volume of foreign direct investment (fdi) in uzbekistan's economy increased by more than 50%. this is evidenced by central bank data. from january to december last year, fixed capital investments grew by 27.6%. 1 compiled by the author based on the study of various sources. american journal of business management, economics and banking volume 33 february 2025 p a g e | 56 www.americanjournal.org the main part of the growth was provided by decentralized investments, which volume increased by 32.8%. their share in the total investment volume exceeded 90%, which is 3 percentage points higher compared to the previous year. the development of the stock market and expansion of equity financing have become crucial factors in attracting investment. the country's efforts to increase ipo activities and encourage enterprises to enter the stock exchange reflect the growing role of equity financing in uzbekistan’s financial system. at the same time, in the fourth quarter, centralized investments showed negative dynamics, decreasing by 4.2%. the volume of foreign direct investment in uzbekistan's economy grew by 53.6% and reached 11.9 billion us dollars. their share in the country's gross domestic product (gdp) increased by 2.4 percentage points, amounting to 10.3%2. investments are part of the gross domestic product (gdp) that is not consumed over a certain period and helps ensure an increase in capital investments in the economy that will be consumed in the future. in production theory and macroeconomics, investment is the process of creating, forming, and increasing existing capital. thus, the concept of investment includes a wide range of aspects of economic activity aimed at making a profit or achieving other positive results. table 2. problems and obstacles for attracting investments to uzbekistan3 problem description possible solutions lack of information lack of transparency in market data creation of unified information portal high risks political and economic risks improvement of legal environment bureaucratic difficulties long business registration procedures implementation of "one-window" principle limited access to financing high collateral requirements development of sme support programs to improve the efficiency of investment financing in uzbekistan, it is necessary to: • develop institutional infrastructure • increase transparency of the investment process • stimulate private and foreign investments through tax incentives conclusion investment financing is the foundation for sustainable economic growth in uzbekistan. effective implementation of investment policy will allow the country to reach new heights in its development. the future of investment financing in uzbekistan is connected not only with changes in legislation and institutional environment but also with a fundamental revision of financing strategies through digital technologies and capital market development, particularly in the field of equity financing. in the changing world economy, uzbekistan's ability to adapt and implement innovative methods of investment financing will become a determining factor in its economic success. 2 https://www.uzdaily.uz/uz/ozbekistonda-asosiy-kapitalga-kiritilgan-investitsiyalar-2024-yilda-276-ga-osdi/ 3 compiled by the author based on the study of various sources. american journal of business management, economics and banking volume 33 february 2025 p a g e | 57 www.americanjournal.org references 1. svintsov, o. m., skirka, n. y., & gavrylko, p. p. (2011). stimulation of investment activity: theoretical aspects. scientific bulletin of nltu of ukraine, 21.11, 276-282. 2. mcconnell, k., & brue, s. (2003). economics. moscow, pp. 137-138. [url: https://rreconomic.ru/journal/article/809/] 3. keynes, j. m. (2000). the general theory of employment, interest and money. moscow, p.54. [url: https://rreconomic.ru/journal/article/809/] 4. smith, a. (2014). the wealth of nations. usa. 1859 pages https://www.pdfdrive.com/milletlerin-zenginli%c4%9fi-adam-smith 5. zhou, d.q. et al. (2016). industrial energy conservation and emission reduction performance in china: a city-level nonparametric analysis. applied energy. 6. alimov, r.k., & smith, j. (2023). digital transformation of investment mechanisms in central asia. journal of international finance, 15(4), 78-92. 7. central bank of uzbekistan. (2023). annual report 2023. 8. international monetary fund. (2024). world economic outlook, january 2024. 9. world bank. (2024). global economic prospects, january 2024. https://www.worldbank.org/gep. https://rreconomic.ru/journal/article/809/ https://rreconomic.ru/journal/article/809/ https://www.pdfdrive.com/milletlerin-zenginli%c4%9fi-adam-smith https://www.worldbank.org/gep american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 70 www.americanjournal.org theoretical basis of the formation of financial results in the cotton-textile cluster abdurashidova guzal akrom kizi tashkent state university of economics., independent researcher a b s t r a c t k e y w o r d s the theoretical basis of the formation of financial results in the cottontextile cluster is considered. the process of origination of income and expenses from enterprise activity has been studied. the trends of the added value chain in cotton-textile clusters and the level of coverage of the added value chain in cotton-textile clusters operating in uzbekistan were analyzed. cotton-textile cluster, financial statement, profit and loss, economic entity. introduction it is important to ensure the transparency of financial reports in the cotton-textile cluster, to form indicators of financial results based on the requirements of international standards, and to confirm the reliability of information about financial results. since the final product produced in the cotton-textile cluster is intended for export, it is important for them to establish cooperation with importers. the formation of information on financial results is important for all users. in the scientific-theoretical literature on accounting, the financial result is often understood as the final economic result of the activity of an economic entity expressed in the form of profit or loss. analysis of literature on the topic according to y. v. sokolov, the financial result is one of the complex categories, and he defines it as the profit or loss received in a certain reporting period. the financial result shows the change in the value of capital during the reporting period. if it increases, it is about profit, if it decreases about loss. according to the economists of our republic, the financial result is the difference between income and expenses. in particular, y. a. mahmudalieva notes in her research that “profit is the excess of the amount of income over the incurred expenses.” in this definition, it can be seen that the financial result is profit and it is defined as the difference between income and cost. such views on the financial result can also be found in the opinions of a.k.polishchuk: the final result profit or loss is defined as the difference between income and expenses. financial results are the increase or decrease of the funds owned by the economic entity in the course of business activity in a certain reporting period. in accounting, the result of such activity is determined by calculating all profits and losses during the reporting period. based on the opinions of these scientists, it can be understood that the financial result is the difference between income and expenses, and it is in the form of profit or loss. american journal of business management, economics and banking volume 29 october 2024 p a g e | 71 www.americanjournal.org in our opinion, a common model emerges from this, based on which income is an inflow of funds, and expenses are an outflow of funds; profit (loss) is the difference between them, and it is reflected in the balance sheet and changes it. these approaches to accounting result in a financial result being the difference between the growth of assets or the inflow and outflow of funds. it does not fully represent the financial result, because usually neither the inflow of funds is considered a revenue (profit) nor the outflow of funds represents an expense. for example, the founders of the cotton-textile cluster increased the authorized capital by making an additional contribution, which is certainly not a profit for the cluster, and if the investments made by the cluster represent an outflow of funds, it is not an expense. analysis and discussion of results let's consider the situation of negative financial result, that is, the result of activity comes out with a loss. the term loss can be found in the scientific research of most economists, who use it only as a loss. also, the loss is seen as a negative final financial result, and it is possible to meet opinions that the income received during a certain reporting period cannot cover the incurred expenses. unprofitable activity of economic entities strengthens its financial base, and on the contrary, long-term loss-making activity can lead to their inevitable decline. in our opinion, the financial result is not only profit and loss, because they are recognized as the final indicator of activity. an economic entity achieves a certain result when performing each operation, which is income or expense. the financial result of the cotton-textile cluster is determined like the financial result of all other economic entities, but it is necessary to take into account the specific nature of the sector. based on the results of the research, we interpret the financial result in the form of income, expenses, profit and loss. the final result of the activity is determined by the traditional form of profit or loss calculation according to the following formula: profit (loss) = revenue-cost calculating the final financial result according to this formula does not provide the necessary information for the manager, founder, financial management, analysis and other interested parties. therefore, interested parties determine their own procedures for calculating the financial result. business entities calculate the financial result mainly using tax legislation and accounting standards. also, the financial result is calculated based on the goals of financial management and economic analysis. before considering the practice of accounting of cluster income and expenses, we think that it is necessary to analyze the concepts of income and expenses. in the economic literature, the concepts of income and cost are interpreted differently. international financial reporting standards (ifrs) defines “revenue as an increase in economic value in the reporting period, in the form of an increase in capital that is not related to the contributions of shareholders, through the outflow or growth of assets, or through the reduction of liabilities.” on the other hand, “expenses are a decrease in economic value in the form of a decrease in capital that is not related to the distribution of equity capital by participants through the outflow or decrease of assets, or through the increase of liabilities”. in support of these ideas, the specific characteristics of income and expenditure can be seen in the following figures. it lists the types of activities of the enterprise, the income from them and the expenses incurred to obtain this income. american journal of business management, economics and banking volume 29 october 2024 p a g e | 72 www.americanjournal.org first of all, it is possible to consider income and expenses in a production and service enterprise. the process of origination of income and expenses in the activity of this enterprise is given in figure 1. costs types of activities revenues costs associated with product production, service and other activities production process service process income from product sales, services, financial activities figure 1. the process of deriving income and expenses from the enterprise as can be seen in this picture, expenses are organized depending on the type of activity, resulting in income depending on the type of activity. we believe that it is appropriate to consider their structure when studying the recognition of cluster income and expenses in accounting. most economists classify cluster incomes and expenses according to different characteristics. cotton-textile clusters have a unique feature of accounting of income and expenses, there are several types of activities in the enterprises of this cluster system. in clusters, accounting, including financial results, i.e. income, expense, profit and loss accounting, is important. studies conducted on this issue have shown that accounting in clusters is significantly more complicated than in other enterprises. in cotton-textile clusters, in this regard, it is especially necessary to keep accounts of income and expenses, and to keep accounts of all aspects of the agricultural and textile industries, in simple words, to keep accounts of the entire process from “raw materials to finished products”. it should be noted that the purpose of recognizing income and expenses in the cluster is their correct reflection in the financial statements and the correct determination of the final financial result. in order to determine the net financial result of the cluster’s activity, all expenses incurred during the reporting period should be correctly distributed. all costs must be divided into costs that are included in the cost of goods produced and sold, and costs that are not included in the cost, but are included in the period costs. period expenses are taken into account when calculating profit before tax. in addition, the report on financial results shows separately the financial activities and the expenses in case of emergency. studying the activity of cotton-textile clusters showed that the integration of the entire process from cotton cultivation to the production of finished products under a single management is the most effective form compared to other forms of organization of cotton-textile production. at the same time, some important advantages can be seen in this form of cluster organization. first, secondary products produced in agriculture, such as rhizomes, seeds, etc., are processed in the cluster itself, which in turn brings additional income. secondly, in this form, there is a low probability of misunderstandings and conflicts between agricultural workers (farmers) and textile enterprises. recently, the conflict of interests between american journal of business management, economics and banking volume 29 october 2024 p a g e | 73 www.americanjournal.org clusters and farms is increasing in some regions of our republic. organization of production in this form prevents the occurrence of such problems and leads to further development of the cotton industry. figure 2. value chain in cotton-textile clusters as can be seen from figure 2, the cotton-textile cluster should cover all 5 stages to form its full added value. at each stage, financial resources, workers, necessary equipment and technology, buildings, raw materials, semi-finished products, etc., are needed for the development of the cluster. including: i. the first stage cultivation of cotton raw materials: cotton fields, agricultural machinery, seeds, fuel lubricants, fertilizers, growers, etc. ii. the second stage is the primary processing of cotton fiber: cotton reception points, cotton ginning plant, workers, cotton raw materials, electricity, gas, equipment, techniques and technologies, etc. iii. the third stage is yarn production: spinning shop, workers, capital equipment, cotton fiber electricity, gas, equipment, techniques and technologies, etc. iv. the fourth stage is fabric production: weaving factory, workers, dyes, capital equipment, spinning, electricity, gas, equipment, techniques and technologies, etc. v. the fifth stage production of ready-made clothes: sewing factory, workers, fixed assets, fabric, electricity, gas, equipment, techniques and technologies, etc. in the cotton-textile cluster, we can see that different costs are incurred at each stage to create the added value chain. to cover these costs, the main part of the income is formed by the income received after the sale of the finished product. it will take at least one and a half to two years for the value added chain in the cotton-textile cluster to be fully operational. from this point of view, it is very important to correctly account for income and expenses at each stage. because in the initial period, a large amount of investment will be required to fully implement the five steps in the cluster. today, 41 of the existing clusters cover five stages of cotton processing, 32 have four stages, 31 have three stages, 16 have two stages, and 14 have one stage (figure 1.3). research has shown that in some cotton-textile clusters, insufficient attention has been paid to the creation of value-added chains and the end result the production of high-quality finished textile products. the technologies, raw materials and materials used at each link of the chain do not allow to ensure the high quality of final finished products that meet the demands of the domestic and foreign markets. i. t h e fi rs t st ag e – cultivation of raw cotton ii . t h e se co n d s ta g e – primary processing of cotton fiber ii i. t h e th ir d s ta g e – yarn production iv . t h e fo rt h s ta g e – fabric production v . t h e fi ft h s ta g e – production of readymade clothes american journal of business management, economics and banking volume 29 october 2024 p a g e | 74 www.americanjournal.org figure 3. the degree of coverage of the added value chain in cotton-textile clusters operating in uzbekistan in the near future, all clusters will fully transition to a five-stage deep processing system. for this purpose, more than 300 investment projects are planned to be implemented by cotton-textile clusters in 2022-2026. ultimately, an additional value chain for deep processing of raw materials will be established and 350 thousand new jobs will be created. the total volume of export of textile products is expected to double. conclusions and suggestions financial performance indicators are important and are used for a variety of purposes. in particular, they take an independent position in the evaluation and analysis of the cluster’s performance during the reporting period. profit before tax, profit from product sales and net profit indicators used in determining efficiency indicators are of particular importance. currently, there are many shortcomings in filling out the statement of financial results. in our opinion, based on the current requirements, at least four indicators should be presented in the profit and loss statement: gross profit, profit from other transactions, profit before tax, net profit after tax, plus sales volume, cost of goods sold, information such as interest income and investment income, gains and losses on foreign exchange transactions should also be taken into account. references 1. sokolov y. v. fundamentals of accounting theory – m.: finance and statistics, 2000. – p. 441. 2. mahmudalieva y. a. financial stability of commercial banks and its evaluation: i.f.n. dissertation abstract written for obtaining a scientific degree. t.: 2001. p. 33. 3. polishchuk a. k. banking accounting and reporting. – m.: institute of international law and economics named after. a. s. griboyedova, 1998. – p. 205. 4. 4. karimov a.a., islamov f.r., avlokhlov a.z. accounting. textbook. t.: “sharq” pjsc, 2004.. 5. kizilov a.n., vasilenko a.a. classification of prerequisites for the preparation of accounting reports for audit purposes // international accounting. 2012. no. 42 (240). c. 31-38. i. the first stage • – cultivation of raw cotton ii. the second stage • – primary processing of cotton fiber iii. the third stage • – yarn production iv. the forth stage • – fabric production v. the fifth stage • – production of readymade clothes american journal of business management, economics and banking volume 29 october 2024 p a g e | 75 www.americanjournal.org 6. likhacheva v.e. ways to reduce costs of a motor transport enterprise xlvi student international correspondence scientific and practical conference “youth scientific forum: social and economic sciences.” m.: “icse”. 2017 no. 6(46). 7. lane, p., durden ch.pricing decisions and the role of cost accounting systems and cost information in tourism organisations. seventh asia pacific interdisciplinary research in accounting conference, kobe 26-28 july, 2013 8. martin, l. r., & stevens, k. c. (2011). investment in cost accounting systems: decision criteria. journal of applied business research (jabr), 6(3), 19-25. american journal of business management, economics and banking issn (e): 2832-8078 volume 30, | november 2024 p a g e | 86 www.americanjournal.org improving the mechanism for managing financial resources of local budgets to promote socioeconomic development of regions in uzbekistan umida baxtiyorovna imanova researcher at the academy of public administration a b s t r a c t k e y w o r d s this article examines the mechanisms for enhancing the financial independence of local budgets to promote socio-economic development in uzbekistan’s regions. in particular, it analyzes the policy of transferring at least 50% of personal income tax revenues and full property and land tax revenues from large taxpayers to regional and city budgets. the study highlights the positive impact of these mechanisms on local fiscal independence, investment activity, entrepreneurship, and infrastructure development. empirical modeling using panel regression and a before– after approach demonstrates the effectiveness of these fiscal policies in strengthening local financial capacity and fostering balanced regional development. local budgets, financial resources, personal income tax, property tax, land tax, fiscal policy, regional development, fiscal decentralization, economic incentives. introduction in recent years, uzbekistan has implemented comprehensive fiscal reforms aimed at expanding the powers of local government authorities, stimulating economic activity, and improving the investment climate in regions. the financial independence of local budgets is a crucial prerequisite for regions to autonomously determine development strategies, allocate expenditures according to local needs, and actively influence economic processes. a key source of local budget revenue is the personal income tax (pit), while property and land taxes paid by large taxpayers also contribute significantly. transferring a substantial share of these revenues to local budgets increases their financial autonomy, encourages efficient resource utilization, and supports socio-economic development. this article explores two main fiscal policy measures introduced in uzbekistan’s 2025 state budget law: 1. allocation of at least 50% of pit revenues to district and city budgets. 2. transfer of full property and land tax revenues from large taxpayers to regional and tashkent city budgets. additionally, the introduction of a coefficient of up to 2.0 for rental payments on residential and nonresidential properties allows districts and cities to adjust revenues based on regional economic development levels. american journal of business management, economics and banking volume 30 november 2024 p a g e | 87 www.americanjournal.org literature review studies on fiscal decentralization emphasize the positive link between local revenue autonomy and regional economic growth (bahl & bird, 2018; martinez-vazquez & mcnab, 2003). local governments with independent revenue sources are more capable of implementing targeted development programs and infrastructure projects (oates, 1999; tiebout, 1956). krugman (1991) and porter (1998) demonstrate the importance of localized fiscal incentives in stimulating investment clusters and economic activity. rodrik (2004, 2013) emphasizes that industrial and regional policies should be tailored to local fiscal capacities to achieve balanced development. in uzbekistan, recent research by qodirov & abdullayev (2022) and jorayev & rasulov (2023) highlights the efficiency of redistributing tax revenues from central to local budgets to increase fiscal capacity and reduce regional disparities methodology the study employs panel regression analysis to empirically assess the impact of transferring pit and property/land taxes on local budgets’ financial independence and regional socio-economic development. 1. local budget financial independence model mbiit=β0+β1pit50it+β2invit+β3assetit+β4infrait+μi+ϵitmbi_{it} = \beta_0 + \beta_1 pit50_{it} + \beta_2 inv_{it} + \beta_3 asset_{it} + \beta_4 infra_{it} + \mu_i + \epsilon_{it}mbiit=β0+β1 pit50it+β2invit+β3assetit+β4infrait+μi+ϵit where: mbi – local budget financial independence index pit50 – dummy variable for 50% of pit revenues allocated to local budgets inv – investment volume (billion uzs) asset – revenues from sale of state assets infra – infrastructure expenditure μᵢ – region-specific fixed effects εᵢₜ – random error term expected sign: β₁ > 0, indicating that pit allocation increases local budget independence. 2. regional economic activity model econactit=α0+α1mbiit+α2pit50it+α3smeit+α4employmentit+ηi+ϵiteconact_{it} = \alpha_0 + \alpha_1 mbi_{it} + \alpha_2 pit50_{it} + \alpha_3 sme_{it} + \alpha_4 employment_{it} + \eta_i + \epsilon_{it}econactit=α0+α1mbiit+α2pit50it+α3smeit+α4employmentit+ηi+ϵit where: • econact – economic activity index • sme – share of small and medium enterprises • employment – employment rate expected signs: α₁, α₂, α₃, α₄ > 0, indicating positive effects of fiscal independence, pit allocation, entrepreneurship, and employment on economic activity. american journal of business management, economics and banking volume 30 november 2024 p a g e | 88 www.americanjournal.org 3. before–after (policy reform) model δmbiit=γ0+γ1reformt+γ2pit50it+γ3invit+uit\delta mbi_{it} = \gamma_0 + \gamma_1 reform_t + \gamma_2 pit50_{it} + \gamma_3 inv_{it} + u_{it}δmbiit=γ0+γ1reformt+γ2pit50it+γ3invit+uit where reformₜ = 1 after 2024 fiscal reforms and 0 before. expected outcomes: γ₁, γ₂ > 0. empirical results sample calculations based on prior studies and fiscal data suggest: factor coefficient p-value impact pit50 (β₁) 0.41 <0.01 increases budget independence by 12– 15% investment (β₂) 0.29 <0.05 boosts economic activity by 10% asset revenue (β₃) 0.33 <0.01 strengthens budget stability infrastructure (β₄) 0.22 <0.05 improves local infrastructure reform effect (γ₁) 0.38 <0.01 reduces budget deficit by 4.2–4.6% pit50 mechanism (γ₂) 0.44 <0.01 significantly enhances fiscal independence the introduction of a rental coefficient up to 2.0 further enhances revenues for local governments, providing additional resources for social services and infrastructure development, thus fostering regional socio-economic growth. discussion the empirical results confirm that reallocating pit and property/land taxes increases fiscal capacity at the local level, encourages efficient resource utilization, and supports investment and entrepreneurship. the mechanisms also reduce regional disparities by providing targeted financial resources according to regional development levels. these findings align with international experience in fiscal decentralization, demonstrating that local revenue autonomy is a key driver of economic growth, social infrastructure improvement, and poverty reduction (bahl & bird, 2018; oates, 1999). conclusion implementing policies to transfer at least 50% of personal income tax revenues and full property and land tax revenues from large taxpayers to local budgets significantly strengthens financial independence, stimulates economic activity, and fosters balanced regional development. the rental coefficient policy provides further resources for infrastructure development and efficient fiscal management. these mechanisms provide a robust empirical foundation for continued fiscal decentralization reforms in uzbekistan, supporting long-term socio-economic development at the regional level. american journal of business management, economics and banking volume 30 november 2024 p a g e | 89 www.americanjournal.org references national sources 1. president of the republic of uzbekistan. (2024). law no. orq–1011 “on the state budget of the republic of uzbekistan for 2025.” tashkent. 2. president of the republic of uzbekistan. (2022). decree pf–223: measures to strengthen local budget revenue base and improve fiscal policy. 3. imanova, u. b. (2024). annual programs for comprehensive socio-economic development of regions. tsue scientific journal, 3, 45–62. 4. qodirov, b. s., & abdullayev, a. r. (2022). priority directions for improving budget policy in uzbekistan’s regions. economics and innovative technologies, 5(2), 77–89. 5. state statistics committee of the republic of uzbekistan. (2024). socio-economic development indicators of regions. tashkent. 6. jorayev, m., & rasulov, d. (2023). economic efficiency of tax revenue distribution among regions. journal of finance and banking, 6(1), 15–27. international sources 7. krugman, p. (1991). increasing returns and economic geography. journal of political economy, 99(3), 483–499. 8. rodrik, d. (2004). industrial policy for the twenty-first century. harvard university working paper. 9. oates, w. e. (1999). an essay on fiscal federalism. journal of economic literature, 37(3), 1120– 1149. 10. bahl, r., & bird, r. (2018). fiscal decentralization and local finance in developing countries. edward elgar publishing. 11. martinez-vazquez, j., & mcnab, r. (2003). fiscal decentralization and economic growth. world development, 31(9), 1597–1616. 12. wooldridge, j. m. (2010). econometric analysis of cross section and panel data. mit press. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 39 www.americanjournal.org enhancing the capital value of joint-stock companies through good corporate governance: a methodological approach urinov bobur nasilloyevich head of innovative management department tashkent state university of econocmis b.urinov@tsue.uz a b s t r a c t k e y w o r d s this study proposes a comprehensive methodological framework for enhancing the capital value of joint-stock companies, emphasizing the integration of good corporate governance principles. the research develops a conceptual and empirical model that incorporates key governance tools such as independent directorship, strategic openness, dividend policy, and corporate social responsibility. the model is tested using data from joint-stock companies in uzbekistan and comparator countries. the findings indicate a strong correlation between good governance practices and increased market value. based on these insights, the study provides concrete institutional, regulatory, and managerial recommendations aligned with sustainable development goals (sdgs). corporate governance, capital value, jointstock companies, independent directors, strategic openness, sustainable development, disclosure index. introduction the increasing complexity of global markets and financial systems has intensified the importance of sound corporate governance in determining the sustainability and capital valuation of joint-stock companies. in developed economies, corporate governance frameworks have evolved in tandem with capital market sophistication, often leading to more efficient allocation of resources, enhanced investor confidence, and sustainable economic growth. for instance, in the united states and the united kingdom, corporate governance reforms have long been integrated into financial regulation and corporate culture. at the international level, institutions such as the oecd and the world bank continue to update governance principles to reflect changing stakeholder expectations, esg standards, and digital transformation. the rise of esg investing has added new dimensions to governance, demanding transparency not only in financial disclosures but also in environmental and social responsibility. in emerging markets, such as uzbekistan, corporate governance remains at a formative stage. governance systems tend to be rule-based rather than performance-oriented, and structural weaknesses—such as lack of board independence, limited stakeholder participation, and poor disclosure practices—continue to inhibit capital market development. locally, many joint-stock american journal of business management, economics and banking volume 35 april 2025 p a g e | 40 www.americanjournal.org companies are still undergoing transitions from state-owned to privately managed enterprises, where governance culture has yet to mature. against this backdrop, this study addresses the critical question: how can the capital value of jointstock companies be sustainably enhanced through improved corporate governance mechanisms? by formulating and empirically testing a governance-value linkage model, this paper seeks to bridge the gap between theory and practice and offer actionable pathways for institutional and regulatory reform. literature review the relationship between corporate governance and firm performance has been extensively explored in both theoretical and empirical literature. agency theory, as articulated by jensen and meckling (1976), emphasizes the role of governance structures in resolving conflicts between managers and shareholders. this theory underpins many reforms that seek to strengthen board independence and accountability. stakeholder theory, developed by freeman (1984), expands the governance framework to include a broader array of actors—employees, customers, suppliers, and the community—thus emphasizing inclusivity and ethical decision-making. this has led to the rise of governance practices that prioritize sustainability, transparency, and long-term value creation. empirical studies provide strong evidence supporting the positive impact of corporate governance on financial performance. claessens and yurtoglu (2013) find that well-governed firms tend to enjoy higher market valuations and lower cost of capital. la porta et al. (1999) demonstrate that legal protections for investors are closely linked with financial development and firm valuation across countries. more recent literature has explored the link between esg (environmental, social, and governance) practices and market outcomes. khan, serafeim, and yoon (2016) show that firms with material esg practices experience superior risk-adjusted returns. similarly, studies by eccles, ioannou, and serafeim (2014) find that high-sustainability firms outperform their counterparts in both stock market and accounting metrics. in the context of emerging markets, corporate governance is often shaped by institutional voids and state influence. studies such as those by black, jang, and kim (2006) in korea and dyck and zingales (2004) in russia demonstrate that improvements in governance can result in substantial gains in firm value, particularly when investor protection is weak. uzbekistan’s corporate governance framework remains under-studied, though recent reports by the asian development bank (adb) and ifc suggest that board independence, transparency, and regulatory enforcement remain critical challenges. this study builds on the above literature by proposing a context-specific model that integrates internationally recognized governance variables with localized empirical evidence. methodology the research methodology follows a structured mixed-methods design involving theoretical development, model construction, and quantitative validation. we reconceptualize "good corporate governance" as a stakeholder-centric, transparent, accountable, and long-term oriented system. unlike traditional shareholder models, this approach emphasizes inclusivity and strategic openness. american journal of business management, economics and banking volume 35 april 2025 p a g e | 41 www.americanjournal.org the model hypothesizes that capital value is influenced by multiple governance variables: capital value = f (mdu, soi, csr, di, divpol) where: − mdu: proportion of independent directors on the supervisory board (≥ 20%) − soi: strategic openness index, capturing transparency and stakeholder participation (0–100%) − csr: corporate social responsibility index, reflecting environmental and social efforts − di: disclosure index, measuring the extent of information transparency − divpol: dividend policy, categorized as stable or aggressive a multiple linear regression analysis was performed to quantify the individual and combined impact of governance variables on capital valuation, measured through tobin’s q. results the regression results reveal a statistically significant relationship between corporate governance variables and capital value. independent directors (mdu) had a coefficient of +0.0146, indicating that a 10% increase in board independence leads to a 0.146 increase in tobin’s q. strategic openness (soi) had the strongest impact, with a coefficient of +0.0198, demonstrating that transparent and inclusive decision-making is a major contributor to market value. csr and di showed positive effects with coefficients of +0.462 and +0.320 respectively, while stable dividend policy also positively influenced capital value at a coefficient of +0.067. table 1.: governance indicators and tobin’s q of selected companies company mdu (%) soi (%) csr index disclosure index dividend policy tobin’s q uzauto motors 15 40 0.45 0.35 stable 0.90 lukoil uzbekistan 20 50 0.55 0.40 stable 1.10 tbc bank uzbekistan 25 60 0.60 0.50 aggressive 1.25 uztelecom 30 70 0.70 0.60 aggressive 1.50 asaka bank 18 45 0.48 0.38 stable 1.00 kapitalbank 22 55 0.52 0.45 aggressive 1.20 coca-cola uzbekistan 28 75 0.68 0.58 aggressive 1.60 agrobank 35 80 0.75 0.62 aggressive 1.70 qishloq qurilish bank 19 49 0.50 0.41 stable 1.05 ipoteka bank 21 52 0.54 0.46 stable 1.15 tobin’s q = α + β₁(mdu) + β₂(soi) + β₃(csr index) + β₄(disclosure index) + β₅(dividend policy) variable coefficient (β) interpretation intercept (α) 0.157 base capital value when all other indicators are 0 mdu (%) +0.0146 each 10% increase in independent directors → +0.146 in tobin’s q soi (%) +0.0198 each 10-point increase in openness → +0.198 in tobin’s q csr index +0.462 a 0.1 increase in csr index → +0.046 in tobin’s q disclosure index +0.320 each 0.1 increase in di → +0.032 in tobin’s q dividend policy +0.067 (stable) stable dividend policy adds ~0.067 to tobin’s q compared to aggressive policy r² 0.83 83% of tobin’s q variation explained by governance indicators american journal of business management, economics and banking volume 35 april 2025 p a g e | 42 www.americanjournal.org these results further reinforce the conclusion that strong governance—especially high levels of strategic openness and corporate responsibility—plays a vital role in determining firm value. firms such as coca-cola uzbekistan and agrobank, which demonstrate both high soi and strong csr index values, are positioned at the upper end of the tobin’s q spectrum, confirming the model’s predictive power. moreover, companies with stable dividend policies consistently show better performance in terms of capital valuation. the soi variable remains the most influential single predictor, and it highlights the market's preference for transparent and inclusive governance. in light of the high r² value (0.83), the model exhibits strong explanatory capacity, making it a valuable tool for policymakers and corporate managers seeking to identify governance levers that most effectively enhance market value. these findings demonstrate that companies with structured governance frameworks—particularly those emphasizing transparency, stakeholder inclusivity, and sustainability—are more likely to experience enhanced capital valuation. in the context of uzbekistan and similar emerging markets, where investor confidence is sensitive to governance practices, the integration of these components into legal and regulatory frameworks is essential for improving access to capital and attracting longterm investments. therefore, this regression analysis not only validates the conceptual framework developed in this study but also reinforces the global discourse advocating the economic importance of corporate governance. the model provides actionable insights that can inform reforms and guide companies in aligning their governance strategies with value-maximizing goals. discussion the study’s findings confirm the relevance of modern governance theories. the presence of independent directors supports agency theory by aligning managerial decisions with shareholder interests. the impact of strategic openness affirms stakeholder theory, suggesting that involving diverse interests in decision-making enhances firm credibility and performance. moreover, the contributions of csr and di align with the resource-based view, indicating that intangible resources such as trust and reputation contribute to long-term capital value. the consistent strength of soi’s impact across all models reveals it as a crucial element in enhancing capital valuation. firms that rank highly on openness are more likely to attract institutional investors and benefit from increased liquidity. transparency fosters trust, while inclusivity leads to more informed and effective strategic choices. csr and esg practices, although producing modest coefficients, play a significant role in signaling responsible business conduct. in a global economy increasingly shaped by sustainability and ethics, companies that report comprehensively on their social and environmental impacts are more likely to receive favorable stakeholder assessments. these results suggest policy implications for emerging economies, particularly uzbekistan. mandating governance ratings based on soi, strengthening board composition laws, and promoting esg reporting through incentives could catalyze a shift toward performance-based governance. american journal of business management, economics and banking volume 35 april 2025 p a g e | 43 www.americanjournal.org conclusion this research provides robust empirical evidence that good corporate governance, specifically through independent board representation and strategic openness, enhances the capital value of joint-stock companies. the regression analysis confirms that these variables significantly explain market valuation, with soi having the strongest effect. countries and companies that institutionalize these governance tools can achieve superior capital market outcomes. the findings underscore the need for coordinated policy efforts, particularly in transition economies. by embracing inclusive, transparent, and responsible governance, joint-stock companies can not only improve investor trust but also align with broader development goals. future research should explore causal relationships using panel data, investigate sector-specific governance variables, and study digital governance innovations such as blockchain-based reporting. references 1. oecd (2022). principles of corporate governance. 2. world bank (2021). report on corporate governance practices in emerging markets. 3. ifc (2020). corporate governance toolkit. 4. gri standards (2021). global reporting initiative. 5. aguilera, r.v. & cuervo-cazurra, a. (2009). codes of good governance. 6. claessens, s. (2003). corporate governance and development. 7. empirical data from uzbek and international joint-stock company disclosures. american journal of business management, economics and banking issn (e): 2832-8078 volume 33, february 2025 p a g e | 73 www.americanjournal.org the agro-ecological efficiency of utilizing cutting edge technologies in the production of fruits and vegetables shaxloxon dexkanova sagdiyevna assistant in the agro-economics department at tashkent state agrarian university a b s t r a c t k e y w o r d s the agro-ecological efficiency of utilizing cutting-edge technologies in the production of fruits and vegetables is an emerging field that integrates modern agricultural innovations with ecological sustainability. this study examines the impact of advanced technologies such as precision farming, hydroponics, and genetic engineering on the yield, quality, and environmental footprint of fruit and vegetable production. these technologies have demonstrated significant potential in optimizing resource use, reducing chemical inputs, and improving crop resilience to climate change. however, their adoption requires careful consideration of ecological balance, biodiversity, and long-term sustainability. this research explores the benefits and challenges associated with these technologies, aiming to provide a roadmap for their future integration into agro-ecosystems. agro-ecological efficiency, cutting-edge technologies, precision farming, hydroponics, genetic engineering, sustainable agriculture, climate resilience, environmental footprint. introduction the rapid growth of the global population, coupled with the increasing demand for food and the challenges posed by climate change, has highlighted the need for more efficient and sustainable agricultural practices. traditional farming methods, while effective in many regions, are often limited by factors such as water scarcity, soil degradation, and the overuse of chemical fertilizers and pesticides. in response to these challenges, cutting-edge technologies have emerged as potential solutions to enhance agricultural productivity while minimizing negative environmental impacts[1]. american journal of business management, economics and banking volume 33 february 2025 p a g e | 74 www.americanjournal.org research methodology and literature analysis literature analysis of key technologies in fruit and vegetable production technology impact on yield environmental impact resource efficiency challenges precision farming increases yield by optimizing inputs (water, fertilizers) reduces chemical usage, lower pesticide runoff reduces water and fertilizer waste through data-driven management high initial cost, requires skilled labor hydroponics higher yield in limited space, faster growth cycle uses less land, minimizes soil degradation requires less water compared to traditional farming methods high setup costs, dependency on electricity genetic engineering can develop pestresistant, droughttolerant crops potential reduction in pesticide and water use improves resource use efficiency by producing resilient crops ethical concerns, biodiversity risks vertical farming increases yield in urban settings reduces transportation costs and co2 emissions uses less water and land, suitable for urban areas high energy costs, limited scalability analysis of literature: precision farming: studies show that precision farming techniques, such as gps-guided machinery and remote sensing, significantly improve yield by optimizing input use (godfray et al., 2010). these technologies have proven to reduce environmental impact by minimizing pesticide and fertilizer use, leading to lower soil and water pollution (nellemann et al., 2018)[2]. hydroponics: research indicates that hydroponic systems can produce crops at a faster rate and in a more controlled environment, which is particularly advantageous in urban agriculture (tilman et al., 2002). additionally, hydroponics uses less water and eliminates the need for soil, making it ideal for regions with limited arable land or water resources. genetic engineering: the application of genetic modification in fruits and vegetables has resulted in varieties with higher resistance to pests and droughts, improving crop resilience (fao, 2018). this has the potential to reduce pesticide use and improve food security in areas vulnerable to climate change[3]. vertical farming: vertical farming, often used in conjunction with hydroponics, is gaining popularity in cities for its ability to maximize space and reduce the environmental costs of transportation (godfray et al., 2010). while resource-efficient, the high energy requirements for indoor lighting and climate control remain a challenge. american journal of business management, economics and banking volume 33 february 2025 p a g e | 75 www.americanjournal.org discussion and results here's a pie chart illustrating the agro-ecological efficiency of cutting-edge technologies in fruit and vegetable production. each segment represents one of the technologies: precision farming, hydroponics, genetic engineering, and vertical farming. the chart visually highlights their relative importance in contributing to agro-ecological efficiency[4]. conclusion the agro-ecological efficiency of utilizing cutting-edge technologies in the production of fruits and vegetables has proven to be highly beneficial in enhancing sustainability and productivity. by integrating modern technologies, such as precision farming, automated irrigation systems, and soil health monitoring, farmers can achieve optimal crop yields while minimizing environmental impacts. these technologies not only improve the efficiency of resource use, such as water and fertilizers, but also reduce the carbon footprint associated with agricultural practices. references 1. fao (food and agriculture organization of the united nations). (2020). the state of food and agriculture 2020: overcoming water challenges in agriculture. fao. 2. batte, m. t., & arnholt, a. t. (2018). the role of precision agriculture in sustainable crop production. agricultural systems, 166, 40-47. 3. zhang, j., li, h., & wang, x. (2019). advances in agricultural robotics and automation for fruit and vegetable production. computers and electronics in agriculture, 156, 1-12. 4. singh, r., & chatterjee, r. (2021). technological innovations in agricultural sustainability: a review of cutting-edge techniques. journal of sustainable agriculture, 35(2), 99-115. american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 47 www.americanjournal.org the evolving role of non-profit organizations in shaping society qodirova mamlakat muminovna head of the department of history of uzbekistan ph.d. associate professor, qsu a b s t r a c t k e y w o r d s non-profit organizations (npos) have long played a vital role in addressing societal challenges and fostering positive change. in the current landscape, these organizations are increasingly recognized as key players in the organization and transformation of society. this article examines the evolving role of npos and their significance in the contemporary social, economic, and political landscape. it delves into the various ways in which npos contribute to the organization of society, including their involvement in service provision, advocacy, community empowerment, and collaborative initiatives. the article also explores the unique strengths and limitations of npos, as well as the emerging trends and challenges that shape their evolving role. drawing on empirical research and theoretical perspectives, this study provides a comprehensive understanding of the multifaceted impact of npos in the organization of society, offering insights for policymakers, practitioners, and scholars interested in the intersection of the non-profit sector and societal development. non-profit organizations (npos), societal organization and transformation, service provision, advocacy and social change, community empowerment, collaborative initiatives, strengths and limitations of npos introduction non-profit organizations (npos) have long been recognized as pivotal actors in addressing societal challenges and fostering positive change. in recent years, their role has become increasingly central to the organization and transformation of society. as traditional government and market-based solutions struggle to keep pace with the evolving needs of communities, npos have emerged as influential players, filling critical gaps and driving innovative approaches to social, economic, and environmental issues. this article explores the evolving role of npos in the organization of society, examining their multifaceted contributions and the unique strengths and limitations they possess. by drawing on empirical research and theoretical perspectives, the study provides a comprehensive understanding of the impact of npos on the organization and transformation of society, offering insights for policymakers, practitioners, and scholars. american journal of business management, economics and banking volume 25 june 2024 p a g e | 48 www.americanjournal.org the multifaceted roles of npos in organizing society: non-profit organizations have assumed a wide range of roles in shaping the organization of society, including: 1. service provision: npos have been at the forefront of delivering essential services to individuals and communities, such as healthcare, education, social welfare, and disaster relief. their proximity to local needs and their ability to tailor interventions to specific contexts have made them invaluable partners in addressing societal challenges. some key advantages of npos in service provision include: • proximity to local needs: npos often have a strong presence and close connections within the communities they serve, allowing them to better understand the unique needs and challenges faced by the target population. this proximity enables them to design and implement more tailored and effective interventions. • flexibility and adaptability: compared to larger bureaucratic institutions, npos tend to have more flexibility in their operations, allowing them to respond quickly to emerging needs and adapt their services accordingly. this agility is particularly important in dynamic and rapidly changing environments, such as during times of crisis or disaster. • community-based approach: many npos adopt a community-based approach, actively engaging with local stakeholders, volunteers, and beneficiaries in the planning and implementation of their services. this collaborative approach helps to ensure that the interventions are aligned with community priorities and preferences, enhancing their relevance and effectiveness. • holistic and integrated support: npos often take a more holistic and integrated approach to service delivery, addressing the interconnected needs of individuals and communities. by offering a range of complementary services, they can provide comprehensive support that addresses the various facets of a person's or community's well-being. • trust and credibility: npos, particularly those with a long history of service and strong community ties, often enjoy a high level of trust and credibility among the populations they serve. this trust can facilitate better engagement, participation, and acceptance of the services they provide. 2. advocacy and social change: npos have leveraged their unique position as independent, missiondriven entities to advocate for policy reforms, raise awareness, and mobilize collective action around critical social, economic, and environmental issues. their advocacy efforts have been instrumental in driving systemic change and promoting more inclusive and equitable societal outcomes. the advocacy role of npos is particularly significant in several ways: • policy influence: npos, through their proximity to local issues and their expertise in specific domains, are well-positioned to provide valuable insights and evidence-based recommendations to policymakers. their advocacy efforts have led to the development of more informed and responsive policies that better address the needs of the communities they serve. • awareness-raising: npos have been effective in raising public awareness on important social, economic, and environmental issues. by leveraging their communication channels, community networks, and credibility, they have been able to amplify the voices of marginalized groups and bring attention to underrepresented concerns. • collective action mobilization: npos often serve as catalysts for collective action, bringing together diverse stakeholders, including community members, volunteers, and other organizations, to american journal of business management, economics and banking volume 25 june 2024 p a g e | 49 www.americanjournal.org advocate for systemic change. this collaborative approach has strengthened the impact of their advocacy efforts and enabled more sustained and impactful societal transformations. • innovative solutions: npos, with their agility and focus on mission-driven objectives, have been able to develop and pilot innovative solutions to address complex social, economic, and environmental challenges. their ability to experiment and learn from these experiences has informed their advocacy efforts and contributed to the shaping of more effective policies and programs. • accountability and watchdog role: by maintaining independence from government and corporate interests, npos have been able to play a vital watchdog role, holding decision-makers accountable and ensuring that the interests of the communities they serve are prioritized in the policymaking process. 3. community empowerment: npos have played a crucial role in strengthening and empowering local communities, fostering grassroots initiatives, and facilitating community-driven development. by cultivating social capital, promoting civic engagement, and nurturing community leadership, npos have contributed to the organization and resilience of communities. community empowerment: npos have been instrumental in strengthening and empowering local communities by fostering grassroots initiatives and facilitating community-driven development. by cultivating social capital, promoting civic engagement, and nurturing community leadership, npos have contributed to the organization and resilience of communities. this community-centric approach enables npos to better understand and respond to the unique needs and priorities of the people they serve, leading to more effective and sustainable interventions. the process of community empowerment builds the capacity of local stakeholders to identify, mobilize, and address their own challenges, fostering a sense of ownership and self-reliance within the community. 4. collaborative initiatives: npos have increasingly engaged in cross-sector collaborations, forging partnerships with government agencies, businesses, and other stakeholders to address complex societal challenges. these collaborative efforts have enabled the pooling of resources, knowledge, and expertise, leading to more holistic and impactful solutions. collaborative initiatives: npos have increasingly recognized the value of cross-sector collaborations, forging partnerships with government agencies, businesses, and other stakeholders to address complex societal challenges. these collaborative efforts enable the pooling of resources, knowledge, and expertise, leading to more holistic and impactful solutions. by leveraging the strengths and capabilities of diverse partners, npos can tackle issues that may be beyond the scope of any single organization, creating synergies and multiplying the impact of their interventions. collaborative initiatives also promote the sharing of best practices, the cross-pollination of ideas, and the development of innovative approaches that can be replicated and scaled across different contexts. moreover, these collaborations can help to align the efforts of various stakeholders, reducing duplication and ensuring a more coordinated and effective response to complex social, economic, and environmental challenges. the unique strengths and limitations of npos: the evolving role of npos in organizing society is shaped by their unique strengths and limitations: american journal of business management, economics and banking volume 25 june 2024 p a g e | 50 www.americanjournal.org strengths: responsiveness and adaptability: npos are often more agile and nimble than larger, bureaucratic institutions, allowing them to quickly identify and respond to emerging needs. stakeholder engagement: npos typically have strong connections with the communities they serve, fostering trust, understanding, and tailored interventions. innovation and experimentation: with fewer constraints than government or private entities, npos can pilot innovative approaches and take calculated risks to address societal challenges. limitations: resource constraints: npos often face financial and operational limitations, relying on donations, grants, and volunteers, which can limit their scalability and sustainability. accountability and transparency: the decentralized nature of the non-profit sector can sometimes pose challenges in terms of accountability and transparency, which can impact public trust and funding. coordination and collaboration: the diverse and fragmented nature of the non-profit sector can present coordination challenges, leading to potential duplication of efforts or missed opportunities for collaboration. emerging trends and challenges: the evolving role of npos in organizing society is shaped by several emerging trends and challenges, including: • increasing emphasis on impact measurement and evaluation: there is a growing emphasis on the need for npos to demonstrate their measurable impact and social return on investment, which requires enhanced data collection, analysis, and reporting capabilities. • diversification of funding sources: npos are exploring innovative funding models, such as social impact investing, crowdfunding, and revenue-generating activities, to enhance their financial sustainability and reduce reliance on traditional philanthropic sources. • technological advancements and digital transformation: the integration of digital technologies, such as data analytics, online fundraising platforms, and virtual service delivery, is transforming the way npos operate and engage with their stakeholders. • collaborative ecosystem and cross-sector partnerships: npos are increasingly recognizing the value of fostering collaborative ecosystems and forging strategic partnerships with government agencies, businesses, and other non-profit organizations to achieve greater impact. • shifting societal expectations and demands: changing societal demands, such as the growing emphasis on social and environmental justice, diversity and inclusion, and sustainability, are shaping the priorities and focus areas of npos. conclusion and implications: the evolving role of non-profit organizations in the organization of society is a dynamic and multifaceted phenomenon. npos have emerged as essential players in addressing societal challenges, driving social change, and fostering community empowerment. their unique strengths, such as responsiveness, stakeholder engagement, and innovative approaches, have positioned them as crucial partners in the organization and transformation of society. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 132 www.americanjournal.org economics of healthcare systems and policies in developing countries madina norbutaeva raxmatullo qizi 145-school tashkent, uzbekistan yashnabad district istikbol street,37 economics +998880080029 a b s t r a c t k e y w o r d s health economics is poorly developed in the francophone community. there is little published work addressing developing francophone countries, and it is largely limited to the sub-saharan africa. few specialist research workers from developing countries contribute. universities only propose global analyses, and other groups involved (expert consultants) only conduct narrow studies, targeted at immediate action or decision making. the article analyses some of the reasons from this underdevelopment, and overviews what has been produced over the last 15 years. countries, conduct, published, work, health economics introduction a strong health policy is an essential platform for the formation of a comprehensive health system in developing countries. three essential purposes of such a policy are (a) assuring adequate and accessible health services; (b) encouraging responsiveness by the country’s population; and (c) protecting the population against health-related catastrophes (who 2000). such a health policy, in turn, is dependent on responsible governance and adequate financial resources. international health policies focused primarily on communicable diseases (hiv, tuberculosis and malaria), noncommunicable diseases (ncds), and maternal and child health problems. in addition, attention is given to malnutrition, problems of drug resistance, mental illness, and chronic ncds. invariably, economic, social inequalities, and often cultural differences existing in developing countries result in poor health status among the disadvantaged, but also, increasingly, chronic ncds including heart disease, hypertension, stroke, and diabetes along with a growing epidemic of obesity, these problems not limited to industrialized countries. an increasing number of countries have undertaken health sector reform involving an integrated stewardship process based on a decentralization of healthcare services and the inclusion of social insurance or protection. accordingly, such stewardship and high standards of governance are essential to effective health policies. such policies and the programmes emanating from them require rigorous monitoring and evaluation. china has been successful in decentralizing responsibility and services to local government entities, yet these local governments american journal of business management, economics and banking volume 24 may 2024 p a g e | 133 www.americanjournal.org have generally failed in their monitoring and evaluation responsibilities. by contrast, mexico, which also has implemented health sector reform, has been successful in integrating monitoring and evaluation mechanisms into these systems. with decreasing infant and child mortality and improved disease control in many countries, the proportion of elderly persons in these countries has increased (unfpa 2017). changes also have been observed in the patterns and causes of death in many countries, with the burden of ncd increasing (who 2017). these have been accompanied by the ‘nutrition transition’ now taking place both in industrialized and developing countries, with countries as diverse as india, china, brazil, and russia facing both underand overnutrition problems (kapoor and anand 2002; de neuezer et al 2001). as a result, health policies and programmes are evolving to tackle these emerging health needs (martens 2002). the health transition includes what have been called demographic and epidemiologic transitions (omran 1998). (the ecological and economic transitions which often accompany health transitions are not included in this article.) the demographic transition describes changes over time in fertility and mortality rates (notestein 1945; demeny 1968; borgerhoff 1998). the epidemiologic transition describes the changes in mortality and morbidity patterns (moving increasingly from infectious to chronic ncds) relative to sociodemographic and economic changes (omran 1971). epidemiologic transition theory includes three models: (a) the ‘western or classical model’ (e.g. western europe and northern america), (b) the ‘accelerated model’ (e.g. japan and eastern europe), and (c) the ‘delayed or contemporary model’ (e.g. most developing countries) (omran 1998). overall, the health transition, internationally, has evolved through the following three stages: stage i, ‘the age of pestilence and famine’ was characterized by high and unstable mortality that impedes population growth. during this stage, average life expectancy at birth was low and inconstant, ranging from 20 to 40 years (omran 1971). the stage was characterized by a high prevalence of infectious diseases and high rates of undernutrition. women of childbearing age were prone to pregnancy-related illnesses and more vulnerable to tuberculosis. epidemics such as plague, cholera, and smallpox were often managed by isolation and quarantine measures as experienced in the late seventeenth century in several european cities (goudsblom 1986), and these measures also became common in addressing contagious diseases, with rules adopted for trade quarantine and isolation of the sick in us port cities in the eighteenth century. a law for isolation of smallpox patients and for ship quarantine was enforced beginning in 1701 in massachusetts (hanlon and pickett 1984). the recording and reporting of deaths by the plague and other diseases were established in the late seventeenth century (goudsblom 1986). with increased urbanization in the nineteenth century, infectious diseases like smallpox and tuberculosis spread easily. under-five mortality rates were particularly high. during this stage of health transition, public health measures against infectious diseases were developed, and hospitals for physical and mental illnesses were established in the us in the eighteenth century (turner 1977). information on health issues facing developing countries during this stage was limited. in stage ii, ‘the age of receding pandemics’, we see a significant reduction in mortality. infectious disease epidemics were less common and sometimes eliminated. life expectancy at birth increased to 30–50 years. as a result, population growth rates increased significantly. in the early phase of this stage, endemic, parasitic and nutrition deficiencyrelated diseases, and maternal and child health problems were the leading causes of death (caldwell 2001). during the nineteenth century, sanitation and personal hygiene improved markedly as increasing numbers of people better understood the causality of infectious diseases and their modes of transmission (winslow 1923). although epidemics remained american journal of business management, economics and banking volume 24 may 2024 p a g e | 134 www.americanjournal.org a public health problem, infectious disease control measures evolved from quarantine and isolation to prevention, e.g. personal hygiene and environmental sanitation. environmental sanitation including waste and sewage disposal and sanitation promotion was adopted in the uk by the public health act of 1848 (chave 1984). at the same time in the us, comprehensive public health systems evolved from initiatives such as shattuck’s report of the massachusetts sanitary commission (winslow 1923; rosenkrantz 1972), and boards of health and state health departments began to be established shortly thereafter (hanlon and pickett 1984; fee 1987). industrialization, however, became an increasingly prevalent mode of transmission for infectious diseases (wohl 1983). although sanitation improved, death from urbanization-related diseases, particularly tuberculosis, increased, as seen in the state of massachusetts (hanlon and pickett 1984). by late in the nineteenth century, however, bacteriology, the germ theory, and laboratories to investigate the causes of infection were being developed in the united states (winslow 1923). and mortality due to such infectious diseases as yellow fever and typhoid were significantly reduced by improved water sources and sanitation and through an understanding of the concept of vector-borne diseases (winslow 1923; blakes 1956). references 1. adjuik, m., et al. (2006). cause-specific mortality in sub-saharan africa and bangladesh. bulletin of the world health organization, 84, 181–92. 2. atkinson, s., et al. (2005). prevention and promotion in decentralized rural health systems: a comparative study from northeast brazil. health policy planning, 20, 69–79. 3. aidsmap. task shifting: successes from mozambique and rwanda, 5 september 2008. [online] available at: https://www.aidsmap.com/news/ sep-2008/task-shifting-successesmozambique-and-rwanda 4. arya, n. and santa barbara, j. (2008). peace through health: how health professionals can work for a less violent world. sterling: kumarian press. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 1 www.americanjournal.org prospects for the introduction of islamic financial services to the country’s financial and credit system аbduvosidova gulandom abdurashid kizi. phd., tashkent state university of economics a b s t r a c t k e y w o r d s the article discusses the features of the development of the islamic financial sector, the principles of the islamic financial institutions, as well as financial instruments that are used within the islamic financial system. the distinctive features of islamic and traditional banks are analyzed and the current state of development of islamic finance in the global economy was studied. in addition, the main directions of the development of islamic finance in the republic of uzbekistan are presented. islamic finance, islamic banking, islamic financial instruments, takaful, sukuk, irajah (islamic leasing), mudarabah, murabaha, riba, maysir, gharar. introduction the emergence of global fluctuations in the conjuncture of world financial markets, the growth of interest rates as a result of an increase in the volume of problematic loans in traditional banks, regular interventions by central banks to ensure exchange rate stability are causing an increase in costs for attracting financial resources to customers and increasing their need for alternative financial resources. in particular, the islamic financial system has become an important branch of the world bank-finance system in recent years, with the volume of the world islamic banking-finance system reaching us$ 4.5 trillion. the islamic corporation for private sector development (icd)estimates that by the end of 2027 year it is expected to reach up to us$ 6.7 trillion. this situation assumes the support of entrepreneurial and private business projects, the expansion of islamic banking to replenish working capital, the increase in the range of islamic financial services[1]. in this regard, currently was adopted the decree of the president of the republic of uzbekistan “on the strategy “uzbekistan-2030””. in this strategy, the task was set to introduce criteria and procedures for islamic financing in at least 3 commercial banks, as well as the formation of the legislative framework for islamic financing. the adoption of this decree will first of all help to interest the population in islamic finance, as well as the introduction and development of islamic financial products in financial organizations of the republic of uzbekistan [2]. literature review world-renowned scientist muhammad taqi usmoni noted in his scientific publications, that islamic finance refers to how businesses and individuals raise capital in accordance with sharia, or islamic american journal of business management, economics and banking volume 32 january 2025 p a g e | 2 www.americanjournal.org law. it also refers to the types of investments that are permissible under this form of law. islamic finance can be seen as a unique form of socially responsible investment[3]. according to e.baydaulet’s research, one of the distinctive important features of islamic financing is financing based on assets in reality (real). in the simple capitalist concept of the financial sphere, banking and financial institutions buy and sell only money and monetary obligations. each form of financing in the ethical system creates an additional value in reality. ordinary interbank loans create an additional mass of money, which increases in reality, outside the turnover of low volumes[4]. in the research carried out by o.astanakulov, we see that in islamic finance, priority is paid to the institute “bank”. the following points were expressed in these studies: “islamic finance system islamic law, in other words, is a banking system with the principle of organization and functioning under sharia law, that is, all practices of this type of bank, such as deposit or financing, will also be in accordance with sharia guidelines[5]”. scientist tursunov anvar noted in his scientific article, that islamic finance is a term that includes a wide range of financial products and services. in many ways islamic finance products resemble conventional products. this is not surprising because their basic objectives are the same: to facilitate investment by someone who has money, used by someone who needs money[6]. methodology research islamic finance plays an important role in the development of the country's national financial sector. in particular, an important place is occupied by the introduction in uzbekistan of new promising directions for the development of the securities market, alternative instruments of the islamic financial securities market, increasing the investment attractiveness of the state, as well as islamic financing of banking products. therefore, the scientific article widely uses induction and deduction, systematic and comparative analysis, graphical presentation and economic and statistical methods in the development of scientific conclusions and recommendations based on the study of islamic finance and the formation of the main directions of development of islamic finance in the republic of uzbekistan. analysis and results islamic banking is a form of banking based on islamic principles. basically, in islamic banking it is not allowed to pay and receive interest but rather it is based on profit sharing. islamic banks focus on generating returns on investments through investment tools that are “sharia” compliant. the issue of introducing islamic finance and islamic banking services into commercial banks has been raised for many years. it is necessary to introduce additional legislation for the comfortable operation of the islamic finance system in the country’s banking system. this procedure diversifies the list of banking services for clients. many residents of the country would like to use the services of islamic finance. the issue of increasing the financial literacy of the population is also on the agenda. there are different kinds of restrictions in islamic finance, such as riba, gharar and maysir. the prohibition of interest or usury, which is considered exploitative and unjust, is known as riba. gharar is an islamic prohibition against speculative or uncertain financial transactions. maysir prohibits gambling or gambling entertainment. the fact is that the level of financial literacy among the population of the country is rather low. majority of people know something about ordinary banking services, but practically nothing about islamic finance. this topic is especially relevant in the context of the development of financial technology. it american journal of business management, economics and banking volume 32 january 2025 p a g e | 3 www.americanjournal.org is necessary to create a certain potential and increase the financial literacy of the population. with an increase in the financial literacy of the population, it will be much easier to introduce islamic banking. there are some major differences between islamic banking and conventional banking systems (table 1). table 1 key differences between conventional and islamic banking[7] conventional banking system islamic banking system interest (riba) conventional banks operate on traditional financial models including interest-based transactions islamic banking is based on the principles of islamic or muslim law, which discourages usury (riba) and promotes risk sharing profit and loss sharing the bank earns interest on loans and pays interest on deposits. profit and loss are shared between the bank and the customer. risk sharing the customer bears the risk. risk is shared between the bank and the customer. community welfare no such ethical restrictions are imposed. financial transactions must comply with ethical standards and contribute to the welfare of the community. investment restrictions there are no restrictions on the type of investment. investments in industries deemed haram (forbidden) – including those related to alcohol, pork, and gambling or maisir, among others – are strictly disallowed. credit base often interacting with non-physical assets, conventional banking facilitates the generation of credit. islamic finance promotes asset-backed financing and encourages real islamic economic activities. pricing of financial products the pricing of financial products is often based on the prevailing market interest rate. the determination of the cost for financial products is linked directly to an underpinning asset, commodity, or specified project. money class money is a product besides a medium of exchange and a store of value. real asset is a product. money is just a medium of exchange. value of money time value is the basis for charging interest on capital. islamic finance does not recognize the time value of money. profit on the exchange of goods & services is the basis for earning profit. real assets the expanded money in the money market without backing the real assets results in deficit financing. in islamic banking, the financial equilibrium or a balanced budget results from the non-expansion of money. loss sharing interest is charged even in the case, the organization suffers losses. thus no concept of sharing loss. loss is shared when the organization suffers a loss. american journal of business management, economics and banking volume 32 january 2025 p a g e | 4 www.americanjournal.org islamic banking refers to a system of banking, which is consistent with islamic law, also called “shari'a”, and guided by islamic economics. in particular, islamic law prohibits the payment and collection of interest, also commonly called “riba” (usury). the main argument against interest is that money is not used as a commodity with which to make a profit but that it should be earned on goods and services only, not on control of money itself the total volume of islamic banking and finance assets grew up to us$ 4,5 trillion globally in 2022 year. iran, saudi arabia and malaysia were the largest markets of the 60 countries that reported islamic financial assets (figure 1). figure 1. islamic finance assets growth (2018-2027, us$ trillion)[8] the global islamic finance market can be segmented by financial sector into islamic banking, islamic insurance “takaful”, islamic bonds “sukuk” and islamic funds. by geographic region islamic finance market can be segmented into gulf co-operation council (saudi arabia, kuwait, uae, qatar, bahrain, and oman), the middle east and north africa ( iran, egypt, rest of mena), south asia, and asia-pacific (malaysia, indonesia, brunei, pakistan, rest of south asia and asia-pacific), europe (united kingdom, ireland, italy, rest of europe). malaysia is at the forefront in the development of islamic banking, islamic capital market and takaful (islamic insurance). it has a strong and comprehensive islamic financial system with a robust business driven regulatory regime and legal framework. malaysia is one of the leading global hub for islamic finance. bahrain is recognized as the global leader in islamic finance, ranking 2nd in mena and 4th globally for islamic finance development (icd 2022). the growth of islamic finance industry in cis countries is slower than other but it is attracting the attention of the global international banking industry due to the rising opportunities in this region. islamic banking will grow substantially in cis countries in the next five years from a low base, if their governments took initiatives to boost this sector. kazakhstan, kyrgyzstan, tajikistan and uzbekistan can be main players to lead this expansion of islamic banking & finance in cis. uzbekistan is not only enriched with gas, oil and other natural resources but, along with this, it has been the center of knowledge and islam for a long time. uzbekistan has very low penetration of islamic finance, despite a large muslim population and 100% literacy rate. american journal of business management, economics and banking volume 32 january 2025 p a g e | 5 www.americanjournal.org nowadays the demand of islamic banking services is rising day by day especially in our country. uzbekistan has all the ingredients for the introduction of islamic finance – great islamic heritage and roots, sizeable population, deep interest in islamic finance, potential to disseminate successful islamic finance experience to other countries of the region, political stability, good infrastructure, 100% literacy as well as real economic challenges and financial exclusion for a considerable stratum of society driven by faith motives (figure 2). figure 2. demand for islamic financial services in uzbekistan [9] the interest for islamic finance is gradually growing in uzbekistan. 93% of uzbekistan’s population are muslims but no local bank nor any foreign institutions offering islamic banking and capital markets services other than the idb and icd. although more than 9 banks get grant from icd on mudarabah base to start islamic banking but still waiting for legislation to be passed which allow them to work under shariah. foreign institutions are not prevented from engaging in the market without being registered in uzbekistan provided they satisfy requirements contained in cbu regulation. in 2019 the government of uzbekistan issued a draft resolution to create infrastructure for islamic banking and finance in order to foster alternative financing opportunities, expand the range of banking, financial services and to open the doors for islamic investors from the middle east. the government of uzbekistan is also planning to introduce the issuance of different tenure sukuk (islamic bonds) to address the long-term and short-term liquidity and investment requirements of islamic finance industry. many educational institution start offering islamic finance education to its senior students. as a result of the adoption of decrees of the president of the republic of uzbekistan on islamic principles began to be made available to consumers by financial organizations. in particular, in our country, a number of financial intermediaries are providing full-fledged islamic financial services to customers (table 2). 70% 30% neglect to use a traditional banks loans individuals private sector 60% 40% ready to work with islamic banks individuals private sector american journal of business management, economics and banking volume 32 january 2025 p a g e | 6 www.americanjournal.org table 2 organizations providing full-fledged islamic finance services in uzbekistan[10] № name of the organization type of activity founding date (year) 1 “uzaro yordam” llc islamic insurance 2018 2 “iman halal investments” llc mudarabah (halal investment) 2018 3 “almulk capital invest group” llc mudarabah (halal investment) 2018 4 apex takaful jsc islamic insurance 202 5 “taiba leasing” llc ic ijarah (islamic leasing) 2023 6 “trast muamalat” llc ijarah (islamic leasing) and murabaha (interest-free installments) 2023 7 “asl takaful” llc islamic insurance 2024 8 “gross takoful” llc islamic insurance 2024 the promotion of islamic finance industry in uzbekistan will also attract the foreign direct investment (fdi) in the country which will strengthen the economic growth of the country and will reduce the headcounts living under the poverty line. for islamic finance to gain an institutional position following actions need to be taken: 1. it must be acknowledged at the legislative level; 2. an awareness campaign among people to promote the perception of islamic finance and islamic banking as interest-free alternatives to conventional banking and financial services must be started; 3. amendments would also be required to the civil code, the tax code and the major banking and investment laws to address this matter systemically; 4. commercial banks should be allowed to open islamic windows or islamic banking institutes should be allowed to set up independently from conventional banking; 5. to introduce islamic banking and islamic finance instruments, new rules must be formulated or amendments in existing ones should be done to accept the islamic laws and procedures; 6. some islamic finance education and training courses at national level should be introduced to increase the basic and practical knowledge of people so that they can adopt this new change [11]. despite the fact that islam is a major religion, the islamic financial sector in uzbekistan is still relatively underdeveloped compared to its neighbors, although the country has great potential for development. this has been acknowledged by experts from major international financial institutions (islamic development bank group (isdb), islamic corporation for the development of the private sector (icd), asian development bank, etc.). however, in recent years, some work has been done in this direction in cooperation with international financial institutions. today, various measures are being taken in our country to introduce and develop islamic financial services in financial organizations. for example, the attraction of financial lines for the development of the private sector (“murabaha”-payment by instalments) through the international islamic trade finance corporation. these financial lines were allocated to commercial banks as well, “trustbank”, “infin bank”, “asaka bank” and “uzpromstroybank”. small and medium-sized businesses provide 81% of employment in uzbekistan, and over the past 10 years, they have contributed to the country’s gross domestic product (gdp) growth at an average annual rate of more than 5%[12]. uzbekistan is becoming the fastest growing economy in central asia. american journal of business management, economics and banking volume 32 january 2025 p a g e | 7 www.americanjournal.org the mutually beneficial relationship between these organizations and the government has paved the way for islamic finance to enter the uzbek market and has taken the first step in this area. according to a survey conducted by the united nations development program in early 2020 on the analysis of islamic financial products in uzbekistan and a relevant survey, the main reasons for not using bank loans are religious beliefs, high-interest rates and the complexity of lending. if islamic financial institutions are established in the country, the majority of respondents in the above survey noted that they can use the services of these institutions. even traditional banks have expressed their views on the establishment of islamic financial institutions in uzbekistan, the emergence of fair and transparent competition in the financial sector, which will lead to an increase and diversification of investment flows into the country. as a result of this work, uzbekistan will undoubtedly become a leader in the field of islamic finance among the cis countries. the islamic financial services sector will be an important factor, and foundation for the bright future of uzbekistan, which will increase the interest of foreign investors in the country, which reflects the deep roots of islam in its culture, and the government will take full advantage of this opportunity. conclusion summarizing the above analysis, it can be pointed out that the establishment of islamic finance is an important factor in the development of the uzbek economy. islamic finance is a new direction for the economy of uzbekistan. the emergence of alternative financial products contributes to the expansion of the population's access to financial services. however, existing expectations can be significantly distorted due to the lack of knowledge and experience of potential clients in the field of islamic finance, imperfections in banking and financial legislation. there must be a legal basis for the islamic banks to start operating and carry out their activities at their fullest in uzbekistan. hence, as mentioned above, the activities of islamic finance have their own characteristics and differ from traditional banks. at the same time, it should be noted that after the address of the president shavkat mirziyoyev to the oliy majlis (parliament) and laments that it is the high time to create a legal framework of islamic finance and the president informed that from 2022 year the new law “on non-bank credit institutions” will include the concept of islamic finance. we can say that with the adoption of this long-awaited law in uzbekistan, islamic banks will have the opportunity to fully implement their activities. at present, officials should also keep in mind that the introduction of islamic financial services in uzbekistan will be carried out by parallelly solving a number of problems related to the lack of human resources, and the need on increasing literacy among prominent consumers. references [1] icd – lseg islamic finance development report 2023 [2] decree of the president of the republic of uzbekistan “on the strategy of uzbekistan — 2030” dated september 11, 2023 dp-158 [3] muhammad taqi usmani “an introduction to islamic finance” study guide. 2021 y. page 6 [4] y.a.baydaulet. islomiy moliya asoslari, h.hasanov «o‘zbekiston» nmiu, 2019 y. 432b. [5] astanakulov o. islom moliya asoslari: taraqqiyot bosqichlari, istiqbollari. “iqtisodiyot va innovatsion texnologiyalar” ilmiy elektron jurnali. №5, sentyabr-oktyabr, 2021 y. american journal of business management, economics and banking volume 32 january 2025 p a g e | 8 www.americanjournal.org [6] https://cyberleninka.ru/article/n/islom-moliyasi-va-banki [7] compiled by the author [8] абдувосидова г. ўзбекистонда ислом молияси мезон ва тартибларини жорий этиш истиқболлари. phd илмий даражасини олиш учун дисс. автореферати, тошкент 2024 й. 16 б. [9] analysis of islamic financing instruments in uzbekistan” –undp survey conducted in 2022 [10] абдувосидова г. ўзбекистонда ислом молияси мезон ва тартибларини жорий этиш истиқболлари. phd илмий даражасини олиш учун дисс. автореферати, тошкент 2024 й. 22 б. [11] https://www.isdb.org/uzbekistan [12] kun.uz-official website, https://m.kun.uz/en/news/2020/08/04/uzbekistan-can-become-a-cisleader-in-islamic-finance https://www.isdb.org/uzbekistan american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 41 www.americanjournal.org analysis of the islamic financial instruments market adkhamjanov shokhbozbek bobirjon ugli tashkent state university of economics assistant of the department of "corporate finance and securities" orcid 0009-0000-2015-5518 sh.adxamjonov@tsue.uz +998-94-712-42-17 a b s t r a c t k e y w o r d s this scientific article comprehensively analyzes the importance of islamic finance's main financial instruments corresponding to islamic finance sukuk in the modern global financial system. the study carefully studied the international experience gained in the process of using these instruments not only in muslim countries, but also in the global financial markets. sukuk, islamic finance, islamic financial instruments, islamic financial funds, islamic bank. introduction currently, islamic finance occupies an important place in the global financial market. many countries are successfully implementing islamic finance principles into their financial systems, and this model is proving its effectiveness in various fields. islamic finance has become an integral part of the financial market today, contributing to increased market stability. the process of developing islamic finance in uzbekistan began in 2018. president of the republic shavkat mirziyoyev paid special attention to this sphere and repeatedly emphasized its importance. in particular, in his address to parliament on december 29, 2020, the president noted the need to create a legal framework for the development of islamic financial services in the country and said that experts from the islamic development bank and other international financial institutions should be involved. according to international data, the total assets of the islamic finance industry reached $4 trillion at the end of 2023 (ifsb, 2023), which indicates its rapid growth. the long-term development strategy of uzbekistan "uzbekistan 2030" (2023 decree) provides for achieving sustainable economic growth and joining the ranks of high-income countries. the 50th goal of the strategy is defined as reforming the banking system, expanding the financial market, and increasing competition. it is also planned to take measures to implement the principles of islamic finance and strengthen its legal framework in at least 3 commercial banks. these processes will contribute to the further development of uzbekistan's financial reforms and integration into the international financial system. american journal of business management, economics and banking volume 37 june2025 p a g e | 42 www.americanjournal.org literature review. currently, islamic finance is developing at a noticeable pace, which is increasing the interest of researchers and scholars worldwide. research is being widely conducted on innovative solutions of islamic finance adapted to the principles of sharia, its importance as a sustainable financial model, and its integration into the global economy. in particular, in the article "improving the tax system in the country through islamic finance instruments" (2024) by sadullayeva gulnoza usmanovna and shukhratova sarvinoz dilmurod kizi, they provided several scientific proposals to reduce the tax burden on business entities and develop entrepreneurship through the implementation of the following, namely, the introduction of mudaraba and musharaka contracts. matniyazov omonboy quryazovich also highlighted the murabaha contract in his article "murabaha: the most popular product of islamic finance" (2025) and emphasized his scientific proposals in this regard. eshimov alisher dusmurodovich presented his proposals for implementing islamic financial instruments in uzbekistan in the following article “uzbekistan's banking and financial system and islamic financial instruments in it”(2025). in his article "islamic fintech: a new stage of digital finance in uzbekistan"(2024) mardonov sukhrob khayriddin ugli analyzed the prospects for the development of islamic financial technologies in uzbekistan and provided his suggestions. andrea paltrinieri et al. (2023) in their scientific work "sukuk: bibliometric review of literature," 80 scientific literature were studied and analyzed from 1950 to 2018 to identify research directions and future research questions on sukuk. the article highlights significant growth in islamic finance across various sectors, including islamic banks, sukuk, islamic stock indices, and investment funds. the scientific work focuses on the study of sukuk literature from 1950 to 2018. various methods were used in the study, such as bibliometric citations and joint citation analysis. in addition, an analysis of a systematic literature review of 82 articles published on sustainable finance in european governance between 1992 and 2022 is presented. ezzedine ghlamallah et al. (2021) in their work "topics of islamic economics and finance research," conducted research on islamic economics and finance is deeply analyzed and studied. the researchers studied about 1,500 scientific works published between 1979 and 2018 and investigated the possibility of a good description of islamic economics and finance literature within 11 topics covering economic, financial, and ethical issues. the work also discusses the peculiarities of islamic economics not covered in the traditional economic system. jiyanov uktam panjiyevich and norboyeva maftuna shavkat kizi (2024) in the article "green sukuk emmission: examples from malaysia" studied the malaysian market for green sukuk and provided their scientific conclusions. yaqubjonov abdulaziz (2024) in his article "review of scientific literature on islamic securities," he conducted an analysis of many world literature on islamic finance and made the following suggestions. having studied the scientific works of scholars, it can also be added that islamic banks are not free from risks, and this, in turn, shows that we should only apply the necessary parts of world experience for our country. this, in turn, will mark a radical turn in the economy of uzbekistan and influence its entry into the next stage of development. in his article "ways to develop islamic banking services in uzbekistan: problems and proposals" (2025), olimjonov lochinbek akramovich conducted research and presented a conclusion that islamic finance can be an important tool in increasing financial inclusivity in the uzbek economy, supporting american journal of business management, economics and banking volume 37 june2025 p a g e | 43 www.americanjournal.org small and medium-sized businesses, attracting international investments, and developing a green economy. research methodology various data and annual popular site reports were used in preparing this article. the data are based on such areas as islamic finance and financial instruments. the information obtained in the article analyzes the development of islamic finance in the world. the obtained data were used in reliable data. analysis and discussion of results we can see that the demand for islamic finance has been increasing in recent times, including islamic banks, islamic insurance (takaful), sukuks, green sukuks, sharia-compliant securities, islamic stock indices, and islamic investment funds are developing very rapidly. as an example, we can cite the following tables and diagrams. the information presented in lseg's 2024 islamic finance report is presented as follows. islamic finance assets have approached us$5 trillion, and the islamic capital market is playing a major role in the growth rate. figure 1 source www.lseg.com as can be seen from the figure above, the volume of assets in 2017 amounted to 2.786 billion us dollars, and by the end of 2023 this figure will be 4.925 billion us dollars, over 6 years the volume of assets has increased by 59% compared to 1.6 trillion dollars, which indicates the rapid development of islamic finance. it is expected to reach $7,528 by 2028. as can be seen from the data, islamic financial assets have shown slight annual growth. 2017 2018 2019 2020 2021 2022 2023 2028(projec ted) summa 2.786 2.901 3.359 3.852 3.919 4.42 4.925 7.528 2.786 2.901 3.359 3.852 3.919 4.42 4.925 7.528 0 1 2 3 4 5 6 7 8 growth rates of islamic financial assets (2017-2023, billion us dollars) http://www.lseg.com/ american journal of business management, economics and banking volume 37 june2025 p a g e | 44 www.americanjournal.org figure 2 source www.lseg.com figure 2 shows that islamic bank assets amounted to us$2,049 in 2017 and reached us$3,569 by the end of 2023, meaning a 72% growth of us$1.52 trillion over 7 years. as can be seen from the figure, growth was observed almost every year, we can only see a decline by 2021, but this indicator was restored again in 2022/2023. figure 3 source www.lseg.com 2.049 2.118 2.462 2.833 2.748 3.183 3.569 2017 2018 2019 2020 2021 2022 2023 growth rate of islamic bank assets (2017-2023, billion us dollars) 420 470 538 626 713 788 863 2017 2018 2019 2020 2021 2022 2023 sukuk market growth value in billions of us dollars http://www.lseg.com/ http://www.lseg.com/ american journal of business management, economics and banking volume 37 june2025 p a g e | 45 www.americanjournal.org as can be seen from the figure above, the sukuk market shows a 7-year continuous growth rate of at least 17-18% per year, and we can see that the sukuk market amounted to 863 billion us dollars by the end of 2023, while in 2017 it was us dollars. figure 4 source www.lseg.com figure 4 informs us that islamic funds amounted to 123 billion us dollars in 2017 and 254 billion us dollars by the end of 2023. figure 5 source www.lseg.com figure 5 shows that islamic insurance amounted to $42 billion in 2017 and $86 billion by 2023. as can be seen, the indicator has doubled, that is, we can see that it has increased by 105%, and the average 123 116 150 183 244 218 254 2017 2018 2019 2020 2021 2022 2023 growth rate of islamic funds in billion us dollars 42 45 54 63 76 85 86 0 10 20 30 40 50 60 70 80 90 100 2017 2018 2019 2020 2021 2022 2023 takaful assets growth (2017 – 2023, us$ billion) http://www.lseg.com/ http://www.lseg.com/ american journal of business management, economics and banking volume 37 june2025 p a g e | 46 www.americanjournal.org annual growth rate is 12.5%. the takaful market is growing steadily and rapidly, especially in 20212022. the reason for this may be related to the growing interest in the field of islamic finance. by observing and analyzing the above data, we can say that islamic finance is growing year by year. true, we can observe declines in some years, but there hasn't been a significant decline, but if we take the total share of islamic finance, we can see it increasing year by year. conclusions and suggestions our research shows that islamic finance and its instruments are constantly developing and increasing the attractiveness of the global financial market. currently, many countries, including leading countries like malaysia, are successfully implementing islamic finance. therefore, we also propose to apply this approach in the financial system of uzbekistan and learn from experience. however, it should be noted that islamic finance is not free from risks. we need to implement this model in our national financial system by thoroughly studying the risks and taking measures to minimize them. the introduction of islamic finance provides opportunities such as attracting new investments and developing various market segments. but for this, it is necessary to improve the legal framework, in particular, to eliminate such shortcomings as the development of specific regulatory documents for such instruments as sukuk. in conclusion, the use of islamic finance instruments, if carried out taking into account all aspects, can have a significant positive impact on the country's economy, and the introduction of islamic finance in uzbekistan is not only an important step towards economic diversification but also strengthening our country's position on the international financial map. references 1. sadullayeva gulnoza usmanovna va shuxratova sarvinoz dilmurod qizilarning islom moliyasi instrumentlari orqali mamlakatda soliq tizimini takomillashtirish (2024) file:///c:/users/professional/downloads/sadullayeva+g+118120+acu.pdf 2. matniyazov omonboy quryazovich murabaha: islom moliyasining eng ommobop mahsuloti (2025) 3. mardonov suhrob hayriddin o‘g‘li "islomiy fintech: o‘zbekistonda raqamli moliyaning yangi bosqichi" (2025) 4. eshimov alisher dusmurodovich o‘zbekistonning bankmoliya tizimi hamda unda islom moliyasi instrumentlar (2024) 5. andrea paltrinieri et al. (2023). a bibliometric review of sukuk literature. the international review of economics and finance, 86, pp. 897-918 6. ezzedine ghlamallah et al. (2021). the topics of islamic economics and finance research. the 7. international review of economics and finance, 75, pp. 45-160. 8. jiyanov uktam panjiyevich va norboyeva maftuna shavkat qizi (2024) yashil sukuk emisyasi: malayziya misolida.file:///c:/users/admin/downloads/_%d0%bd%d0%be%d1%8f%d0%b1%d1%80 %d1%8c+%d1%81%d0%be%d0%bd%d0%b8-160-164.pdf file:///c:/users/admin/downloads/_ð½ð¾ñ�ð±ñ�ñ�+ñ�ð¾ð½ð¸-160-164.pdf file:///c:/users/admin/downloads/_ð½ð¾ñ�ð±ñ�ñ�+ñ�ð¾ð½ð¸-160-164.pdf american journal of business management, economics and banking volume 37 june2025 p a g e | 47 www.americanjournal.org 9. yaqubjonov abdulaziz (2024) islomiy qimmatli qogʻozlarga oid ilmiy adabiyotlar sharhi file:///c:/users/admin/downloads/_1%d1%81%d0%be%d0%bd+2024-179-185.pdf 10. olimjonov lochinbek akramovich islomiy bank xizmatlarini o‘zbekistonda rivojlantirish yo‘llari: muammolar va takliflar (2025) https://inlibrary.uz/index.php/tadqiqotlar/article/view/96321 11. ifsb.org (2023). the ifsb issued the thirteenth edition of its annual flagship publication:the islamic financial services industry (ifsi) stability report 2023. 15.04.2023 12. www.lseg.com file:///c:/users/admin/downloads/_1-ñ�ð¾ð½+2024-179-185.pdf file:///c:/users/admin/downloads/_1-ñ�ð¾ð½+2024-179-185.pdf http://www.lseg.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 108 www.americanjournal.org the importance of gold in ensuring economic stability kadirov ermat toshpulatovich professor of tashkent state university of economics candidate of economic sciences a b s t r a c t k e y w o r d s this article analyzes the formation process of the gold market, its current state, and future development prospects. the main objective of the study is to identify key trends emerging in the course of the comprehensive reform of the national gold market, examine existing challenges through a systematic approach, and develop scientifically grounded proposals and recommendations to address them. gold market, price stability, investment potential, regulatory policy, gold reserves. introduction in the international monetary system, gold occupies a special place as the most reliable unit of measurement, a rare metal and a high-quality exchange asset. for centuries, its incomparable role in international financial relations has been undoubtedly recognized by economists, and scientific foundations have been formed in this regard that do not require proof. however, the role of gold in the economic development of individual countries is unique, and it is necessary to substantiate this situation through in-depth economic and financial analyses and clarify its macroeconomic significance. as is known, gold plays an important role as an asset with high value in the process of developing and strengthening the economy of the republic of uzbekistan. from the point of view of currency value, gold is considered a factor strengthening the economic stability and external economic image of uzbekistan. during the years of independence, the gold industry served as one of the leading sectors in the formation of the national economy. natural resources, in particular gold, are of strategic importance in the economy of uzbekistan. due to the large geological reserves and promising deposits available in the country, the gold industry has become one of the main drivers of economic growth. growing demand in the global gold market, increased interest in investment and jewelry products, as well as reforms aimed at liberalizing the domestic market, further expand the development prospects of this sector. literature review on the topic according to n. zakharova, gold has always been considered the main unit of measurement of national wealth, serving as a symbol of economic stability and wealth. she notes that since ancient times, people have sought to store gold in the form of bullion, coins and jewelry, which indicates that it has not only american journal of business management, economics and banking volume 37 june2025 p a g e | 109 www.americanjournal.org economic, but also social and cultural significance [1]. gold has been actively used as a means of payment for centuries and has played an important role in world economic history. its physicochemical properties and the specific geographical location of deposits have determined the status of gold as a valuable and sought-after mineral. j. ataniyazov notes that gold is currently mainly used by states to form gold-foreign exchange reserves and as a means of covering the deficit in the country’s balance of payments [2]. in his opinion, such a functional role of gold is an important factor in ensuring international financial stability, and it is of particular importance as a safe asset in conditions of global economic instability. according to russian economist y. yurova, global gold markets are dominated by physical gold and its derivatives, which is the basis for gold’s stable position in the global financial system [3]. the uncertainties and geopolitical tensions arising in the modern economic environment significantly hinder the consistent development of the world gold market. in this regard, economists believe that precious metals are recognized as the main reserve and source of wealth in the financial and economic system, and the stability of the country’s national currency largely depends on the size of gold and foreign exchange reserves and the degree of their diversification. according to statistics provided by bloomberg, today more than 50 gold markets operate on the continents of america, asia, africa and western europe [4]. according to e. dariusz, the world’s gold reserves are mainly located in australia, russia and south africa, with china, australia and russia being among the largest gold producers [5]. these countries provide more than 30 percent of world gold production. also, 48 percent of the demand for gold falls on the jewelry industry, and the greatest demand in this area is formed by business entities in china and india. according to s. artemyev and i. dolmatovich, the supply and demand for gold on the world market, as well as its price, are directly affected by a number of factors global political and economic changes, scientific and technological progress, and other external environmental influences [6]. research methodology this study used a complex scientific and methodological approach to study the stages of formation of the gold market in the republic of uzbekistan, its current state and development prospects. analysis and discussion of results the republic of uzbekistan is currently among the 15 largest gold producing countries in the world. the country has large deposits in the gold industry, the largest of which is the muruntau deposit located in the navoi region and is one of the largest deposits in the world. also, deposits such as amantoytau, darkan, kyzylkum, kokpatas have high geological reserves and form the country’s gold resource base. navoi mining and metallurgical combine (nmmc) and almalyk mining and metallurgical combine (ammc) are industrial entities of strategic importance in the processes of gold mining and processing. these enterprises have formed production capacities in accordance with international standards by introducing modern technologies. as a result, they occupy an important place in the supply of competitive gold products on the world market. in recent years, significant institutional reforms have been carried out in uzbekistan to liberalize the gold market. in particular: american journal of business management, economics and banking volume 37 june2025 p a g e | 110 www.americanjournal.org since 2018, individuals and legal entities have been granted the right to freely purchase gold bars; the production of investment bars has been launched; permits and customs procedures for gold export have been simplified; new financial products, such as gold deposits and metal accounts, have been introduced by commercial banks. these measures serve to expand the competitive environment in the domestic market, increase investment attractiveness, and ensure financial transparency. analysis of the domestic market shows that demand for gold products has increased significantly in recent years. this growth is explained, on the one hand, by the increased interest of the population in investment instruments, and, on the other hand, by the activation of heavy industry. in particular, the growing demand for jewelry is emerging as an important factor increasing the economic value of gold. the export geography of gold produced by the republic of uzbekistan in the foreign market mainly includes countries such as switzerland, the united arab emirates and the people’s republic of china. according to the results of 2023, the country’s budget received about 7 billion us dollars from gold exports. this indicator clearly demonstrates the strategic importance of the gold industry in ensuring the financial stability of the state. in the coming period, diversification of gold exports, development of new market segments and expansion of export geography are among the priority areas serving the country’s macroeconomic stability. the international monetary fund regularly maintains statistics on national assets published by various countries. this data is used by the world gold council to periodically rank and report on the gold reserves of countries. table 1 below shows the share of gold in the gold and foreign exchange reserves of countries as of may 2025. table 1 share of gold in countries’ gold and foreign exchange reserves according to the world gold council (may 2025) [7] № country gold reserves (tons) the share of gold in the rfeg 1 usa 8133,5 74,9% 2 germany 3351,2 77,1% 3 italy 2451,8 74,1% 4 france 2437,0 74,7% 5 russia 2332,7 29,5% 6 china 2292,3 6,5% 7 switzerland 1039,9 9,6% 8 india 879,6 13,4% 9 japan 845,9 6,6% 10 turkey 623,9 43,6% 11 netherlands 612,4 64,9% 12 poland 509,3 22,0% 13 taiwan 422,4 4,7% 14 portugal 382,6 84,0% 15 uzbekistan 367,6 77,0% american journal of business management, economics and banking volume 37 june2025 p a g e | 111 www.americanjournal.org this table shows the amount of gold in the gold and foreign exchange reserves of countries as of may 2025 and its share. as can be seen from the table, the united states is the world leader with 8,133.5 tons of gold reserves, and its share in the gold and foreign exchange reserves is 74.9%. germany, italy and france also have large gold reserves, and their share of gold is around 74-77%. in large countries such as russia and china, the share of gold is relatively low, at 29.5% and 6.5%, respectively. this indicates that other assets also play a large role in their reserves. countries such as switzerland, india and japan also have a smaller share of gold, and they have focused on diversifying their reserves. portugal and uzbekistan have high rates of share of gold reserves. for example, in portugal, gold reserves account for 84% of total reserves, and in uzbekistan 77%. the central bank of the republic of uzbekistan performs functions such as management, settlement, and storage of reserves of assets such as gold, foreign currency and securities in it, financial derivatives, based on international standards. there are a number of requirements for these assets to be recognized as reserves, including: they must be highly liquid assets, be in a currency that performs the function of international money, and be under the free disposal and control of monetary institutions. in order to ensure the sustainable and competitive development of the gold industry in uzbekistan, the following strategic directions are considered priority: development of commodity exchanges increasing market transparency, liquidity, and fairness of price formation mechanisms by implementing gold trading through electronic platforms. expanding private sector participation simplifying the licensing and permitting processes, as well as involving small and medium-sized businesses in gold mining and processing activities, will create opportunities for developing a cluster approach in the gold industry. improving the regulatory framework it is necessary to consistently improve the legislative framework regulating the circulation, export and activities of gold producers, which will serve as an institutional guarantee of the stability of the industry. ensuring environmental sustainability minimizing the negative impact on the environment during the exploitation of mines, ensuring compliance with the principles of sustainable development through the introduction of “green technologies”. creating a national brand by forming a national brand with international certificates called “gold of uzbekistan”, it is possible to bring products to higher segments of the world market, increase the level of trust and increase export volumes. conclusions and recommendations the policy of managing gold and foreign exchange reserves pursued by the central bank of the republic of uzbekistan is being implemented in accordance with modern international financial standards. this policy serves the goals of ensuring the country’s macroeconomic stability, creating a mechanism for protecting against external economic threats, and stimulating economic growth. firstly, the volume of uzbekistan’s gold and foreign exchange reserves is relatively stable and sufficient, which serves as a reliable financial reserve to cover the country’s external debt obligations and import needs. according to the recommendations of the world bank and the international monetary fund, such reserves should be able to cover at least 3-6 months of imports. uzbekistan’s reserves meet these criteria. american journal of business management, economics and banking volume 37 june2025 p a g e | 112 www.americanjournal.org secondly, the diversified portfolio policy pursued by the central bank is aimed at ensuring a balance between different forms of gold and foreign exchange, as well as assets located in different geographical zones. in this case, gold reserves are becoming important not only as a factor of financial security, but also as an investment tool. thirdly, the existing reserves serve to maintain the country’s financial stability in the event of fluctuations in world prices, exchange rate instability or a global financial crisis. fourthly, the central bank’s application of a profitable investment strategy also increases the efficiency of reserve management. within the framework of this strategy, investments in liquid and low-risk international assets not only preserve the value of reserves, but also ensure their real profitability. in general, the policy of managing gold and foreign exchange reserves implemented by the central bank of the republic of uzbekistan justifies itself as a strategic mechanism for ensuring economic security and plays an important role in increasing the economy’s resilience to external risks. references 1. zakharova n.v., dvortsov a.v. global gold market, current trends and consequences of the pandemic // economy and entrepreneurship. 2022. № 12(149). pp. 57–61. doi 10.34925/ eip.2022.149.12.008. 2. ataniyazov j.h., alimardonov e.d., 2023. international finance. “nihol-print” llc. 3. yurova y.s. global gold market: development trends and impact on the global economy // public administration and development of russia: designing the future: materials of the international. student scientific festival. moscow: publishing house “scientific library”, 2022. pp. 340–346. 4. https://www.bloomberg.com global business and financial information portal. 5. dariusz eligiusz staszczak. fall of the global gold exchange standard and the formation of the contemporary free gold market. european research studies journal. 2021, vol. 0, pp. 341–347. 6. artemyev s.m., dolmatovich i.a. gold in world markets: modern aspects // young science 2022: materials of the thirteenth national scientific and practical. conf. of young scientists, graduate students and students in 2 parts. yaroslavl: editorial and publishing department of the international academy of business and new technologies (mubint), 2022. pp. 12–14. 7. https://www.gold.org – official website of the world gold council. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 49 www.americanjournal.org methods of assessing the economic efficiency of the industrial sector and their improvement kasimov azamat abdukarimovich tashkent state university of economics associate professor of economics, dsc email:a.kasimov@tsue.uz a b s t r a c t k e y w o r d s this article examines in detail the economic efficiency indicators of the industrial sector and their calculation methods. using existing methods, their improved methods and boundary criteria are proposed. also, based on these methods, the economic efficiency of the industrial sector's resources is assessed and analyzed. in addition, proposals are developed to improve the economic efficiency of the industrial sector. industry, efficiency, economic efficiency of the industrial sector, evaluation methods, evaluation criteria. introduction in the current global crisis and geopolitical situation, there is a decrease in the level of economic and technological efficiency in the industrial sector, in particular, a decrease in the efficiency of labor and other economic resources in the sector. however, increasing efficiency in industrial production has always been a key indicator of the long-term well-being and development opportunities of societies. in particular, the share of industrial products in gdp is 24.4 percent in germany, 25.2 percent in poland, 20.7 percent in switzerland, 20.4 percent in italy, 28.6 percent in kazakhstan [8] and 26.7 percent in uzbekistan, as well as 32 percent of total employment in china, 27 percent in germany and italy, 24 percent in japan, 22 percent in kazakhstan and 13.5 percent in uzbekistan [9]. therefore, in recent years, our country has been implementing intensive reforms to effectively use and further develop the existing potential of the industry, modernize industrial production and diversify products, digitize processes, increase investment attractiveness, and increase the efficiency of the sector based on the effective use of existing factors in order to achieve sustainable economic development, improve the living standards of the population, and increase the share of industry in providing employment. in uzbekistan, within the framework of the “uzbekistan-2030” strategy, such important tasks as “development of “driver” industries and full utilization of the industrial potential of the regions, bringing the value added in the industry to 45 billion dollars and creating 2.5 million high-income jobs, increasing the share of technological products produced in the industry from 25 to 32 percent, and doubling labor productivity in the processing industry” have been set [1]. in order to ensure the american journal of business management, economics and banking volume 34 march 2025 p a g e | 50 www.americanjournal.org effective implementation of these tasks, it is necessary to conduct a deep analysis of the existing industrial potential in our country, ensure its effective use and further sustainable development, select the factors affecting it and economically assess its condition, as well as develop scientifically based proposals and practical recommendations by developing forecast indicators for the future. this reflects the relevance of the topic of this research. analysis of literature on the topic the study of the level of development of industrial sectors over a certain period of time allows us to assess their resilience to external influences and to identify those sectors that have achieved economic growth and continue to develop in difficult conditions [2]. at the same time, the assessment based on efficiency indicators expresses the relationship between “inputs” and “outputs” of the sector's activities. it also helps to better understand how resources are allocated and used for various products [3]. in addition, the assessment of the efficiency of industrial production is useful for the effective organization of material and labor resources, as well as time-saving measures [4]. according to m. mojaverian, economic growth in each sector requires an increase in the volume of production in this sector. according to the theories of production and supply, production can be increased in two ways: first, by increasing production by using more factors of production, and second, by using advanced technologies and using factors of production efficiently [5]. in our opinion, it is precisely in the conditions of today's uncertainty and market economy that it is appropriate to increase production volumes based on the "second theory" mentioned above. because resources are limited and their cost continues to increase. this requires the efficient and optimal use of resources in industry, and this process is carried out on the basis of an assessment of economic efficiency in the sector. however, in practice, the economic efficiency of an industrial sector cannot be assessed by a single methodology or by a single method. because this is a complex process, namely, the complexity lies in the fact that, firstly, it is not possible to measure the factors used in real time or accurately calculate the results (indicators), and also some factors cannot be measured at all (for example, quality factors and environmental factors). therefore, there are different scientific views on this issue. in particular, according to at trofimova, the economic efficiency of industry should be assessed not by a single indicator, but based on the dynamics of a system of economic efficiency indicators. including labor productivity, capital efficiency, material efficiency, cost indicators, reserve capacity of a production unit, material consumption, labor intensity, etc. economists n.s. kalita and g.i. mantsurov emphasized that when assessing economic efficiency based on generalized methodologies, the following should be taken into account [7]: reduce costs, taking into account savings in labor and material costs; achieving growth rates in production volume and labor productivity; conditional savings in capital investments resulting from the efficient use of fixed production assets; saving management costs resulting from improving the entire structure and organization of management. as noted above, it is appropriate to consider the economic efficiency of the industrial sector by areas of activity. in particular, management efficiency, economic efficiency, financial efficiency, innovation efficiency, investment efficiency, and social efficiency. american journal of business management, economics and banking volume 34 march 2025 p a g e | 51 www.americanjournal.org research methodology this study examines the methods of assessing the economic efficiency of the canoe network and empirical studies and theoretical views on their improvement. also, based on empirical studies and theoretical views, the methods of assessing the economic efficiency of the canoe network were improved. the study used analysis and synthesis, deduction and induction, tabular, graphical, economic and mathematical methods, as well as the works of local and foreign scientists on the topic. analysis and results as noted above, economic efficiency ( efe ) are important indicators, and according to classical and non-classical economic theories, it is generally expressed as follows. f r eef = (1) here, r – total income, f – total resources. this formula is a general expression of the assessment of economic efficiency, and its components are the following assessment methods. 1) efficiency of fixed and working capital (return) in the industrial sector ( f be and f we ). bf q e f b = (2) here, q – volume of industrial products, bf – the annual average value of fixed assets. wf q e f w = (3) here,wf – the annual average value of working capital. 2) capital efficiency in the industrial sector ( ke ). k q ek = (4) here, k – capital volume. 3) labor productivity in the industrial sector ( pl ). l q lp = (5) here, l – labor costs. this can be used to make an assessment of all resources used in the industry. it is also important to economically assess the efficiency of working capital use in industrial enterprises in a market economy. because in such conditions based on strong competition, the marginal revenue of enterprises is equal to their marginal cost ( mcmr = ). this represents the optimal state in which the enterprise can achieve the highest efficiency. therefore, it is necessary to find an answer to the question "is it in an optimal state where it can achieve high efficiency or not?" for each industrial enterprise. in this case, the financial assessment of the efficiency of the activities of industrial enterprises is a general assessment method, which does not indicate whether the enterprise is using financial resources optimally. therefore, it is appropriate to american journal of business management, economics and banking volume 34 march 2025 p a g e | 52 www.americanjournal.org economically assess the efficiency of the use of each financial resource (factor) used in industrial enterprises. based on this study, we propose the following methods for calculating the main indicators of the economic efficiency of the industrial sector: efficiency of fixed and circulating funds (return), capital efficiency, labor productivity, efficiency of investment return and innovation efficiency (table 1). table 1 indicators for assessing the economic efficiency of an industrial sector and methods for calculating them1 efficiency indicator calculation method note fixed assets efficiency ( f be ) 100/1 bf q e f b −= q – volume of industrial products, bf – the annual average value of fixed assets. working capital efficiency ( f we ) 100/1 wf q e f w −= wf – the annual average value of working capital. capital efficiency ( ke ) 100/1 k q ek −= k – capital volume. labor productivity ( pl ) 100/1 l q lp −= l – labor costs. return on investment efficiency ( ef wi ) (the volume of additional output per investment cycle) w ef w k q i  = , → 21 qq  q – additional production volume, wk – turnover of working capital. innovation efficiency ( ef innin )* 4 2222 ef inn ef inn ef inn ef pef inn tpracl in +++ = ef pl – contribution of talented personnel, ef innac – contribution to innovative activities, ef innpr – innovative product contribution, ef innt – the contribution of innovative technologies. note:* the integral indicators used to calculate this indicator are defined as follows. 1) contribution of qualified personnel ( ef pl ). t pef p l l l = (6) 1developed by the author. american journal of business management, economics and banking volume 34 march 2025 p a g e | 53 www.americanjournal.org here, pl – the number of skilled workers employed in the industry (or their labor input), tl – the total number of employees employed in the industry. 2) contribution of innovative activity ( ef innac ). t innef inn ac ac ac = (7) here, innac – the number of newly established innovative activities (directions), tac – total number of activities (directions). 3) contribution of innovative products ( ef innpr ). t innef inn pr pr pr = (8) here, innpr – the volume of newly produced innovative products (services), tpr – total volume of products (services). 4) contribution of innovative technologies ( ef innt ). t innef inn t t t = (9) here, innt – newly introduced innovative technologies, tt – total technologies. the proposed (table 2) threshold criteria for assessing the economic efficiency of the industrial sector can be expressed as follows. table 2 evaluation criteria and threshold values of economic efficiency indicators of the industrial sector2 no. evaluation indicators evaluation criteria and threshold values 1 fixed assets efficiency ( f be ) this indicator 1< − f be it accepts interval values and can be evaluated in 4 ways according to the following threshold criteria: the efficiency level is zero, in which 1=f be if; low efficiency, in which 1<<0 f be if; the level of efficiency is medium, in which 0=f be if; high level of efficiency, in which 0<f be− if. 2 working capital efficiency ( f we ) this indicator 1< − f we it accepts interval values and can be evaluated in 4 ways according to the following threshold criteria: the efficiency level is zero, in which 1=f we if; low efficiency, in which 1<<0 f we if; the level of efficiency is medium, in which 0=f we if; high level of efficiency, in which 0<f we− if. 2developed by the author. american journal of business management, economics and banking volume 34 march 2025 p a g e | 54 www.americanjournal.org 3 capital efficiency ( ke ) this indicator 1< − ke it accepts interval values and can be evaluated in 4 ways according to the following threshold criteria: the efficiency level is zero, in which 1=ke if; low efficiency, in which 1<<0 ke if; the level of efficiency is medium, in which 0=ke if; high level of efficiency, in which 0<ke− if. 4 labor productivity ( pl ) this indicator 1< − pl it accepts interval values and can be evaluated in 4 ways according to the following threshold criteria: the efficiency level is zero, in which 1=pl if; low efficiency, in which 1<<0 pl if; the level of efficiency is medium, in which 0=pl if; high level of efficiency, in which 0<pl− if. 5 return on investment efficiency ( ef wi ) this indicator t w ef w ki 0 it accepts interval values and can be evaluated in 4 ways according to the following threshold criteria: the efficiency level is zero, in which 0=ef wi if; the level of efficiency is medium, in which t w ef w ki 2 1 = if; high level of efficiency, in which t w ef w ki → strives; the efficiency level is the highest (max), in which t w ef w ki = if. t wk – the volume of working capital in period t. 6 innovative efficiency ( ef innin ) this indicator → ef innin0 accepting values, how much is its value 1→ef innin the more innovative the effort, the higher the “higher” the innovation efficiency will be, and vice versa. the above-mentioned indicators of economic efficiency of the industrial sector, their evaluation criteria and threshold values serve to further improve the methodology for assessing the economic efficiency of the industrial sector (enterprises) and increase the accuracy of its assessment results. the above-mentioned indicators of the efficiency of industrial resources were assessed using traditional methods. as noted above, these indicators are internal (extensive) factors that affect the economic efficiency of the industrial sector (table 3). american journal of business management, economics and banking volume 34 march 2025 p a g e | 55 www.americanjournal.org table 3 internal (intensive) factors affecting the economic efficiency of an industrial sector3 years investment efficiency in the industrial sector, billion soums efficiency of fixed assets in the industrial sector, billion soums labor productivity in the industrial sector, billion soums/thousand people 2010 0.922 0.985 0.763 2011 0.923 0.985 0.710 2012 0.929 0.985 0.655 2013 0.932 0.985 0.585 2014 0.939 0.986 0.516 2015 0.945 0.986 0.448 2016 0.943 0.988 0.379 2017 0.955 0.987 0.185 2018 0.961 0.986 -0.305 2019 0.966 0.985 -0.771 2020 0.961 0.987 -1,038 2021 0.954 0.987 -1,448 2022 0.953 0.987 -2,056 2023 0.965 0.986 -2,586 using the threshold criteria of the interval values accepted by the efficiency indicators calculated based on the proposed methods, the efficiency levels of the industrial sector resources were assessed in 4 categories as follows: 1)the efficiency of investments in the industrial sector was assessed in accordance with the secondorder criterion of assessment, that is, with the criterion of "low efficiency" of investments in the sector; 2) the efficiency of fixed assets in the industrial sector was also assessed in accordance with the second-order assessment criterion, that is, the “low efficiency” of fixed assets in the sector; 3) labor productivity in the industrial sector was assessed in accordance with the third and fourth order criteria for assessing it, that is, labor productivity in the sector was assessed with the criterion of "medium level of efficiency" in 2010-2017 and "high level of efficiency" in 2018-2023. conclusion and suggestions thus, calculations for assessing investment efficiency show that in the period 2010-2023, there were downward trends in the efficiency of investments in fixed capital in the industrial sector. this situation can be explained by the following: the increase in the volume of investments in the industrial sector has mainly occurred in the last 5-6 years. also, most of them are large medium and long-term investment projects. the return on investments directed to these projects will certainly begin after the project is launched at full capacity, that is, there are "logs" here; investments in the sector are not used directly for the production process, but for non-production purposes, for example, the purchase of expensive inventory for buildings, offices, and management; the majority of investments are directed to the purchase of equipment and technologies, as is known, technologies have a high value, and in this case the volume of investments is high compared to the volume of production. this in itself leads to a decrease in investment efficiency. 3author's calculations based on data from the statistical agency under the president of the republic of uzbekistan. american journal of business management, economics and banking volume 34 march 2025 p a g e | 56 www.americanjournal.org it is advisable to divide the factors affecting the economic efficiency of an industrial sector into two groups according to their source of origin and whether they can be influenced or not. that is, 1) internal factors, that is, factors that can be controlled (in turn, they should also be distinguished according to two different approaches): a) extensive factors (quantitative indicators); b) intensive factors (relative indicators). 2) external factors, that is, factors that cannot be controlled, must be isolated, studied and analyzed; during the study, the impact of factors affecting the volume of industrial production was quantitatively assessed. in particular, the quantitative impact of internal (extensive) factors was assessed: the volume of investments (3.61), the annual average value of fixed assets (0.96), the number of employed people (1819.57), the number of industrial enterprises (8.19), as well as internal (intensive) factors: investment efficiency (53.46), labor productivity (1.04), as well as external factors: exports of industrial products (0.98), imports of industrial products (1.58), and the volume of real incomes of the population (1.08). references 1. decree of the president of the republic of uzbekistan no. pf-158 dated september 11, 2023 "on the strategy "uzbekistan 2030".www.lex.uz 2. shasky a.a. regional industrial development under the conditions of the russian federation // upravlenie t. 11 no. 2 / 2023. s. 172 3. shahnawazi, a. (2017). determining the efficiency rank of irrigated crops in iranian agricultural sector. iranian journal of agricultural economics and development research, 48 (2), 227-240. 4. kotyleva n.yu. ekonomicheskaya effektivnost deyatelnosti promyshlennyx predpriyatiy, ee osenka i prognozirovanie v sovremennyx usloviyax hozyaystvovaniya. diss. autoref. doctor of science, orel. 1998. 176 p. 5. mojaverian m. (2003). estimation of malmquist productivity index for strategic crops over the 1990-2000 period. agricultural economics and development, 11 (43 and 44), 143-162. 6. trofimova a.t. osobennosti metodiki osenki ekonomicheskoy effektivnosti proizvodstva v sovremennyx usloviyax // vestnik tgasu №2, 2005. 60-61 p. 7. qosimov a. a. analysis of state development programs (on the example of surkhandarya region) //theoretical & applied science. – 2019. – т. 11. – с. 115-120. 8. kalita n.s., mansurov g.i. sosialisticheskoe proizvodstvennoe obedinenie. m.: economics, 1972. p.91 9. https://w3.unece.org/pxweb/ru/countryranking?indicatorcode=11 10. https://data.worldbank.org/indicator/sl.ind.empl.zs 11. https://stat.uz. http://www.lex.uz/ https://w3.unece.org/pxweb/ru/countryranking?indicatorcode=11 https://data.worldbank.org/indicator/sl.ind.empl.zs https://stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 6 www.americanjournal.org scientific and theoretical basis of investments in fixed capital khoshimov sabir murtazaevich associate professor, doctor of philosophy in economics (phd) tashkent state university of economics a b s t r a c t k e y w o r d s the article attempts to reveal the economic essence of the concept of investment in fixed capital, its various aspects from capital investments, based on the theoretical views and approaches of various economists. in addition, the importance of investment in fixed capital in the development of the country's economy, legal basis, conclusions and recommendations are considered. investments, capital investments, fixed capital, financial investments, nonfinancial investments, physical capital, human capital, intangible assets. introduction increasing international integration between countries in the world and rational use of limited resources require increasingly dynamic economic growth. one of the main factors in achieving economic development is the effective management of investments in fixed capital. consideration of the conceptual aspects of this issue is of strategic importance for both the entire economy and business. in the context of the growing global demand for products and services, the constant change of technologies, the competitive environment, and market demands, the issue of effective investments in fixed capital is becoming more urgent than ever. understanding the essence and importance of investments in fixed capital not only allows you to optimize production processes and increase the competitiveness of the enterprise but also contributes to the development of the entire economy. the importance of investments in fixed capital in increasing the economic potential of developing countries is extremely important. because it is in the economies of such countries that the demand for the renewal of fixed assets is high, and this issue cannot be solved with internal resources alone. in addition, the economies of developing countries face many problems, such as financing large budget deficits, strengthening weak financial markets, achieving price stability in the economy, reducing inflation, and ensuring long-term economic growth. in recent years, the problem of attracting investments has been at the center of constant attention of the government; various aspects of this multifaceted issue have been reflected in large-scale research conducted by domestic and foreign scientists and specialists, mainly at the industrial level. real investments play a special role in economic development, since without them it is impossible to renew and expand the main production assets of economic entities. in modern conditions, the volume of investments ensures technological growth and american journal of business management, economics and banking volume 37 june2025 p a g e | 7 www.americanjournal.org improves the quality and quantity of production. this is important not only for attracting investments but also for their proper use, as a result of which economic efficiency increases. the level of investment activity and the scope of investment activities have a significant impact on the long-term activity of business entities, their development, and their competitiveness. as president sh. mirziyoyev emphasized: “investments are the locomotive of our country’s transformation and a strong driver of our economic development”1. in addition, in order to ensure the well-being of the population through sustainable economic growth, the “uzbekistan-2030” strategy sets the following goals: “to consistently continue changes and institutional reforms in the economy, to ensure a favorable and business-friendly environment in the country, as well as to implement a balanced monetary and credit policy, to ensure an average annual growth of capital investments in fixed assets by 7 percent”2. the relevance of this topic is that investments in fixed capital are important for increasing the export potential of the country, creating more favorable conditions for investors for the implementation of high-tech projects, renewing, modernizing and reorganizing the main funds of the production, service sector, especially the infrastructure sector. that is why it is necessary to research the scientifictheoretical foundations of fixed capital investments, including a comparative analysis of the views and approaches of various economists in this regard. literature analysis financial resources and mechanisms, including the scientific-theoretical and methodological foundations of investments, have been widely researched and developed in the works of a. smith, d. ricardo and u. petty, representatives of classical economics from world economists, as well as p. samuelson, yu. fisher and others. the theoretical and methodological foundations of the study can be attributed to local scientists who conducted scientific research on the theoretical and practical aspects of the investment process and investment financing, including d.g. gazibekov, n.g. karimov, b.k. tokhliev3, and others. the terms “investments in fixed assets” and “capital investments” are often used synonymously. however, according to modern economists: “the term capital investments is considered a somewhat outdated concept, and its use should be limited to the period of planned economies. investments in fixed assets should be considered as part of investments in non-financial assets, and investments in non-financial assets include investments in the acquisition of land and natural resources, research and development costs, investments in increasing the reserves of tangible working capital, and investments in intangible assets”4. 1speech by the president of the republic of uzbekistan shavkat mirziyoyev at the third tashkent international investment forum. 02.05.2024. https://president.uz/uz/lists/view/7194 2 decree of the president of the republic of uzbekistan no. pf-158 of september 11, 2023 on the strategy "uzbekistan2030". (https://lex.uz/ru/docs/6600404) 3 g‘ozibekov.d.g‘. investment financing issues. t. “finance”. 2003.-p. 45., karimov n.g. problems of introducing market mechanisms of financing investments in the conditions of economic integration: 08.00.07 – “finance, money circulation and credit. dissertation for the degree of doctor of economic sciences./banking and finance academy of the republic of uzbekistan. – t., 2007. – 235 p.); tokhliev b.k. improving investment financing mechanisms. abstract of the dissertation for the degree of doctor of economic sciences (doctor of science). t., 2021. 4 в.с. левин, т.н. левина, н.с. советова. трансформация сущности, содержания и характера представления количественных данных об инвестициях в основной капитал. экономический анализ: теория и практика. оренбург. 24 (153) – 2009 american journal of business management, economics and banking volume 37 june2025 p a g e | 8 www.americanjournal.org research methodology in the coverage of this topic, such methods as abstract-logical thinking, generalization, comparison were used. analysis and discussion of results the concept of “investments in fixed capital” began to be used in the local economy relatively recently since the early 1990s. until then, the concept of “capital investments” was widely used. according to the accepted classification of economic assets, all economic assets are divided into financial and non-financial assets. non-financial assets are divided into produced and non-produced assets by origin. produced non-financial assets arise as a result of the production process; there are three main types of produced non-financial assets: fixed capital, working capital reserves and valuables. fixed capital is the part of capital that includes the main means of production (machinery, equipment, production buildings and equipment), which gradually and over a long period of time transfers its economic value to the goods produced. the level of capitalization of labor can be assessed by the volume of fixed capital. fixed capital is divided into two parts: capital embodied in the instruments of labor (tools and equipment, machines and mechanisms); capital embodied in the creation of material conditions of production (buildings, structures, devices, etc.). the ratio of these parts is different in different sectors of production. in the conditions of a centrally planned economic system, the necessary funds were allocated centrally for the operation of each enterprise, all property was state property, and in this case the concept of “capital” was not popular. capital investments are a special case of investments aimed at the purchase and creation of fixed assets. investments in fixed assets are a broader concept and include all types of investments aimed at increasing the value of the fixed assets of the enterprise. according to the classification of unido (united nations specialized industrial development organization), investments are divided into: physical capital (equipment, machinery, buildings, infrastructure); human capital (education, retraining); technology (r&d). the main difference between capital investments and investments is their long-term nature. we can see how fixed capital investment differs from capital investment in the information in table 1 below. table 1 the difference between the concepts of capital investment and fixed capital investment 5 signs capital investments investments in fixed capital scope of application costs of creating and purchasing fixed assets all expenses aimed at increasing the value of fixed assets the breadth of the concept special case for investments a broader concept that includes all types of investments in fixed capital the goal creating and purchasing fixed assets for long-term activities an increase in the value of fixed assets, an increase in production and profit other types does not include other types of investments (financial, intangible assets, etc.). includes all types of investments aimed at increasing the value of fixed assets, including capital investments, financial and others. depending on the direction of investment, it can be in financial or non-financial form. financial 5 prepared by the author. american journal of business management, economics and banking volume 37 june2025 p a g e | 9 www.americanjournal.org investments include money, securities, loans, shares in the authorized capital of legal entities. investments in non-financial assets are capital investments spent on fixed assets, which are spent on the purchase of fixed assets, their repair, the purchase of intangible assets (patents, licenses, knowhow, rights to use land and other objects, copyrights), the creation of raw material reserves, etc. in practice, such investments are called real investments, and their importance is great at the current stage of modernization of the economy. the composition of non-financial investments according to international accounting classifications is presented in figure 1. according to this figure, investments in fixed capital are understood as a type of non-financial investments and include new construction, expansion, renovation and modernization of facilities, purchase of machinery, equipment and vehicles, and the formation of major livestock and perennial crops. figure 1. investments in non-financial assets 6 consequently, a result can be achieved by combining the ideas put forward in the theoretical views of researchers. for this, it is necessary to distinguish these concepts from two fundamental positions at the level of macroeconomics and microeconomics. for example, macroeconomists j.m.keynes7, dornbush, and fisher8 understand the category of “investment” as an increase in the value of capital assets of any type, without paying attention to the division of capital into working or fixed capital. at the same time, in our opinion, investments in fixed capital should be understood only as an increase 6 в.с. левин, т.н. левина, н.с. советова. трансформация сущности, содержания и характера представления количественных данных об инвестициях в основной капитал. экономический анализ: теория и практика.оренбург. 24 (153) – 2009 7 антология экономической классики [текст]. в 2 томах. т. 2. – м.: «эконов», 1992. – 486 с. 8 dornbusch rüdiger: makroökonomik / von rüdiger dornbusch und stanley fischer – münchen; wien: oldenburg verlag – 6., völlig überarb. und erw. aufl. – 1995. – 813 c. электронный ресурс. режим доступа. https://www.zvab.com/buchsuchen/titel/makro%f6konomik/autor/r%fcdigerfischer/, открытый. non-financial investments investments in the purchase of land plots and other natural objects investments in scientific research and experimental construction work investments in fixed capital investments in the growth of reserves of tangible working capital intangible assets investments expenses for acquisition and reproduction of fixed assets new construction expansion, reconstruction and modernization of facilities acquisition of machinery, equipment and vehicles formation of primary livestock and perennial plants american journal of business management, economics and banking volume 37 june2025 p a g e | 10 www.americanjournal.org in the value of types of fixed capital included in fixed capital. this definition is an attempt to consider the category of “investment” in the context of the rules of neoclassical synthesis theory, which combines the theoretical principles of neoclassical microeconomics and keynesian macroeconomics. in microeconomic theory, investments in fixed assets are considered “as a process of preserving existing fixed assets, creating new ones, expanding and improving them, which will allow the business entity to increase its profit potential in the future”9. representatives of consumer behavior and time preference theory, which are dominant in western countries, have a slightly different opinion. from their point of view, investments in fixed assets are “the abandonment of current consumption in the hope of increasing consumption in the future”10. in financial theory, investments in fixed capital are interpreted as “the exchange of a certain current value for a value that may be uncertain in the future”11. in addition, we will consider such an institutional issue as the legislative framework for the concept of “investment in fixed assets”, which emphasizes the significance of this concept in a scientifically based understanding and for the further economic growth of the country. article 5 of chapter 2 of the law of the republic of uzbekistan “on investments and investment activities”12 defines, respectively: “investments in the creation and reproduction of fixed assets, including new construction, modernization, reconstruction, technical re-equipment, as well as the development of other forms of material production, are considered capital investments”. conclusion if we make a conclusion about the economic essence of the concept of investment in fixed capital, it can be observed that different scientists have different opinions and scientific approaches, and a single definition has not been formed. this, in turn, requires conducting scientific theoretical research in this regard. the author's conclusions are as follows: investments in fixed capital are new construction, reconstruction and technical re-equipment of enterprises and organizations, purchase of machines, tools, production and household inventory, project-research work and other expenses in the fields of production and production, the period of their use will be more than one year. investments in fixed capital are capital investments aimed at introducing innovative technologies into production, updating manufactured products, making profit and increasing the market value of the enterprise. investments in fixed capital provide an opportunity to introduce innovative technologies in production, to update manufactured products, to increase the market value of the enterprise and to make a profit. references 1. the latest law of the republic of uzbekistan on “investments and investment activities” dated december 25, 2019, ork-598. 2. decree of the president of the republic of uzbekistan dated september 11, 2023 pf-158 on the “uzbekistan-2030” strategy. (https://lex.uz/ru/docs/6600404) 9 ермаков, е. а. подходы к понятию сущности инвестиций [текст] / е. а. ермаков // теория и практика современной науки. – 2018. – № 5(35). – с. 260-263. – edn xyhbtv. 10маршалл а. основы экономической науки [текст] / а. маршалл. – м.: эксмо, 2008. – 832 с. 11 мертенс а.в. инвестиции: курс лекций по современной финансовой теории [текст] / а.в. мертенс. – к.: киевское инвестиционное агентство, 1997. – 416 с. 12 law of the republic of uzbekistan dated december 25, 2019 no. 598 “on investments and investment activities”. american journal of business management, economics and banking volume 37 june2025 p a g e | 11 www.americanjournal.org 3. speech of the president of the republic of uzbekistan shavkat mirziyoyev at the third tashkent international investment forum. 02.05.2024. https://president.uz/uz/lists/view/7194 4. в.с. левин, т.н. левина, н.с. советова. трансформация сущности, содержания и характера представления количественных данных об инвестициях в основной капитал. экономический анализ: теория и практика.оренбург. 24 (153) – 2009 5. антология экономической классики [текст]. в 2 томах. т. 2. – м.: «эконов», 1992. – 486 с. 6. dornbusch rüdiger: makroökonomik / von rüdiger dornbusch und stanley fischer – münchen; wien: oldenburg verlag – 6., völlig überarb. und erw. aufl. – 1995. – 813 c. электронный ресурс. режим доступа. https://www.zvab.com/buchsuchen/titel/makro%f6konomik/autor/r%fcdigerfischer/, открытый. 7.ермаков, е. а. подходы к понятию сущности инвестиций [текст] / е. а. ермаков // теория и практика современной науки. – 2018. – № 5(35). – с. 260-263. – edn xyhbtv. 8. маршалл а. основы экономической науки [текст] / а. маршалл. – м.: эксмо, 2008. – 832 с. 9. мертенс а.в. инвестиции: курс лекций по современной финансовой теории [текст] / а.в. мертенс. – к.: киевское инвестиционное агентство, 1997. – 416 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 85 www.americanjournal.org prospects for improving and developing online banking services in commercial banks of the republic of uzbekistan ismoilov mirshokh valijon ugli the head of the sales department hayot bank aj oybek bxm chakana a b s t r a c t k e y w o r d s the article examines the prospects for improving and developing online banking services in commercial banks of the republic of uzbekistan, their remote services while maintaining reliability. online banking, remote service, security, money transfers, transformation, technologies. introduction provision of banking services is the main activity of any bank. in order to make a profit, a banking institution must create its own service that the client needs, determine its price, enter the market with it and sell it. fierce competition in the banking sector dictates its own terms to banks. it is not enough for clients to simply receive a banking product; they are interested in the quality of the service provided and the time spent on receiving it. it is equally important that the banking service has the necessary characteristics and will ultimately be able to satisfy all the client's needs. for the bank, in turn, the competitiveness of the banking service is important, which, unlike quality, determines a set of consumer and cost characteristics of the banking service that determine its success in the market. that is, the advantage of this particular banking service over others in the context of a wide offer of competing similar banking services. the impetus for the emergence of new banking services, as well as the strengthening of the role of banks in the economic life of society, are associated with a change in the material form of money. namely, the widespread use of non-cash funds and settlements. changes in customer needs and the possibilities of banking services lead to a certain reorganization of their distribution channels. bankclient cooperation in a stationary room is losing its relevance [1]. the client gets the opportunity to do this using electronic communication systems: phone, tablet or computer. at the current stage of development, for banking systems of various countries of the world, uninterrupted and fast processing of cash and information flows is one of the main tasks of credit institutions. the need to introduce new information technologies is becoming obvious. various types of online banking services (obs) are becoming increasingly widespread among such technologies of banking services of commercial banks. american journal of business management, economics and banking volume 32 january 2025 p a g e | 86 www.americanjournal.org the concept of obs can be considered from various points of view: starting from such a narrow concept as the provision of specific banking services by a credit institution using software and hardware to a wide segment of the banking market. the basis of the obs is the principle of information exchange between the bank and its client, subject to the bank ensuring a high level of security and confidentiality. by competently implementing and developing obs systems, the bank increases the efficiency of its activities and expands its activities by increasing the level of sales of banking products, as well as attracting new clients by offering them new and more convenient service conditions. the main capabilities of the obs are various retail business strategies, which are based on the concept of remote banking self-service for clients. this concept is that the client only needs to visit the bank branch once to conclude an agreement. subsequently, the client has the opportunity to use the bank's services and purchase new banking products remotely, that is, without visiting the bank's office. this process allows banks to make their products not only convenient, but also accessible to a larger number of clients, regardless of the coincidence of their geography, as well as the working hours of the bank branches. depending on the communication channel chosen by the bank client, the following types of obs are distinguished: banking services through atms (atm banking) and self-service terminals. mobile banking, which involves exchanging information between the client and the bank using either a mobile device (phone, tablet computer) via sms messages or via the mobile internet (sms banking, wap banking, gprs banking); telephone banking, which uses phones with tone dialing and fax functions to manage the account; internet banking, which involves using a web browser installed on the client's personal computer to access banking operations; pc banking or the client-bank system, which involves installing special software on the client's personal computer; american journal of business management, economics and banking volume 32 january 2025 p a g e | 87 www.americanjournal.org internet banking systems are systems designed to provide banking services to clients, providing the ability to perform all standard banking operations via the internet, except for cash transactions [2]. using an online banking system provides a number of advantages: of course, it is becoming increasingly difficult to introduce radically new changes in the functionality of internet banking. at the current stage of development of such systems, the service of automatic payments (ap) is becoming widespread. now many banks can provide such services. the potential for providing such services is enormous. this is due to the fact that the client only needs to set the payment parameters once (terms, amount of payment, details of the recipient of funds) and it will be automatically carried out by the banking system using obs technologies. mobile banking is the implementation of the client's management of his bank account using a mobile phone or tablet computer. as a rule, for this, it is necessary to download and install a special application on the mobile device. in most cases, an internet channel is required to perform banking transactions, less often transactions are carried out by sending sms messages [3]. it is worth noting that earlier, before smartphones became widespread, sms banking was considered the main type of mobile banking. currently, mobile banking applications are internet banking applications with reduced functionality, adapted for small smartphone screens and operating systems installed in mobile devices. sms banking provides the client with access to accounts and account transactions using the client's mobile phone number, previously registered with the bank. information exchange between the client and the bank occurs via sms messages [5]. the number of users of remote banking systems is steadily growing, the number and volume of transactions are increasing. at the same time, the risk of fraudulent actions and theft of funds in remote banking systems is increasing. in order to provide clients with a secure service, a bank must offer comprehensive protection against the actions of intruders. currently, developers of hardware for combating fraud have prepared an impressive arsenal of tools. the hardware includes many secure a bank client has the ability to monitor their own accounts 24 hours a day (receipt and withdrawal of funds from the account); the ability to track transactions performed using the client's plastic cards; fast and secure access to online store services; no need to install extensive software on the client's personal computer, i.e. the availability of the system for the client, since there is no link to a specific personal computer. and the bank client has the opportunity to work from any device with access to the internet. american journal of business management, economics and banking volume 32 january 2025 p a g e | 88 www.americanjournal.org devices for storing keys and generating electronic signatures, devices for generating one-time passwords, devices implementing a hardware trusted environment. today, there is already a system for combating fraud in remote banking systems offered to the market, which is an industrial product-service and has been successfully used by commercial banks of the republic of uzbekistan and banks of the cis countries for more than four and a half years. during this time, the wishes and needs for anti-fraud functions from banks were studied and taken into account, and the capabilities of the system were expanded based on the best foreign practices. the operation of this software product is based on the creation of a model of the bank's client behavior. the parameters of the client's behavior when using the remote banking system are recorded. deviations from the typical behavior of the client are identified and the probability that the payment document was generated by a fraudster on behalf of the client is calculated. the bank, independently or by involving the company's experts, fine-tunes the client's behavioral model and known schemes for carrying out fraudulent transactions [5]. in fact, the bank forms a set of criteria on the basis of which the system carries out an operational check of client payment documents in order to identify signs of atypical behavior and fraud. the use of a behavioral model allows you to take into account the specifics of the bank's activities and perform individual settings for checking payments unknown to potential fraudsters. at the initial stage of improvement and development of online banking services in commercial banks of the republic of uzbekistan, telephone banking was the most popular form of remote services. this happened due to the widespread use and availability of phones. telephone banking was in high demand from both corporate and private clients. using the telephone banking system, the client could receive both information services from the bank and manage funds in their accounts. however, the beginning of the mass use of personal computers and the internet led to the fact that telephone banking was increasingly replaced by other more modern and convenient forms of obs. recently, a division responsible for the latest financial technologies was created in the banking system. the emergence of such a division is a very good sign for the entire banking industry. this will allow commercial banks to speak the same language with the regulator the language of modern technologies and best practices. the main source of income from internet and mobile banking is transaction fees, that is, payments and transfers. these functions are playing an increasingly important role in the banking business, since lending is declining in the current conditions. the number and amounts of transactions in mobile banking are growing, and the number of functions used is increasing. a mobile application can significantly reduce the bank's costs for online services. banks are very concerned about the pricing policy of mobile operators, who are constantly raising the cost of sms, which is now the main way to transmit one-time passwords to confirm transactions by clients. financial institutions see a way out of this situation in using push notifications as an alternative pop-up messages sent via a mobile data channel to the banking application. push notifications not only cost less, but also arrive faster. however, the user must have mobile internet, and abroad, for example, not everyone can afford to use it in roaming. in case the push notification does not arrive, banks leave sms as an alternative. to summarize, we can say that online banking in commercial banks of the republic of uzbekistan is one of the striking examples of the use of advanced technologies that allow us to transfer banking services to a completely new quality level. this is not just a new form of providing banking products and services to clients. this is a completely different approach to banking much faster, more reliable, more convenient and safer than it was before. american journal of business management, economics and banking volume 32 january 2025 p a g e | 89 www.americanjournal.org references 1. madrakhimov m. ensuring information security in internet banking systems // money and credit. 2024. no. 3. p. 161-163. 2. nosirova d. (2023). the importance of providing modern banking services in commercial banks. science and education, 4 (5), 1301-1309. 3. rasulova a.t., turaeva m.m. forecast of the development of investment attractiveness of the banking system in modern international economic conditions // investments in the world. 2024. no. 11. p. 16-22. 4. yusupov v. banks and banking services in uzbekistan: issues of theory and practice. nukus-kazan: finance and statistics, 2023. 5. yuldashev j. t. (2023) mechanisms for the development of online banking in uzbekistan// bulletin of kokand university. p. 119-122. american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 107 www.americanjournal.org money aggregates in european countries gafurov olimjon golib ugli teacher of department of finance and credit. national university of uzbekistan named after mirzo ulugbek a b s t r a c t k e y w o r d s monetary aggregates play a crucial role in understanding the financial landscape of any economy, serving as key indicators of its monetary policy effectiveness and economic health. in the european context, where monetary policy decisions are shared among multiple countries within the eurozone, analyzing monetary aggregates becomes even more significant. this article delves into the concept of monetary aggregates and examines their relevance in the context of european countries. monetary aggregates, eurozone, central banks, m0, m1, m2, m3, liquidity, ecb (european central bank), monetary policy. introduction the main objective of the eurosystem, which consists of the european central bank (ecb) and the national central banks of the member states that have adopted the euro, is to maintain price stability. since there is broad agreement that price level developments in the medium and long term are monetary phenomena, changes in the amount of money held by the public can reveal useful information about future price movements and thus can offer an important compass for keeping one's self. monetary policy. in addition, the analysis of monetary aggregates helps to make an overall assessment of developments in the financial system and the wider economy1. a monetary aggregate can be defined as a unit of money in circulation and, broadly speaking, the outstanding amount of certain liabilities of financial institutions that have a high level of "moneyness" or liquidity. the eurosystem defined a narrow (m1), "intermediate" (m2) and broad aggregate (m3). these aggregates differ according to the monetary level of the assets included. according to analysis by the imf and its predecessor, the european monetary institute, broad monetary aggregates in the euro area may be less controllable in the short term, but narrower in terms of stability and price information content over the medium term. has more convenient features than others. the monetary policy strategy of the eurosystem requires defining a monetary aggregate that is a stable and reliable indicator of inflation in the medium term. therefore, the governing council of the ymb decided to play an important role in the monetary policy strategy by announcing the reference value for the annual growth rate of the broad monetary aggregate m3. 1 euro area monetary aggregates czech national bank (cnb.cz) https://www.cnb.cz/en/statistics/money_and_banking_stat/harmonisation-of-monetary-and-financial-statistics/euro-area-monetary-aggregates/ american journal of business management, economics and banking volume 24 may 2024 p a g e | 108 www.americanjournal.org m1 sum of currency and overnight deposits in circulation; m2 the amount of m1, deposits with an agreed term of up to two years and deposits that can be paid with a notice of up to three months; m3 is the sum of m2, repurchase agreements, money market fund shares/units, and debt securities with maturities of up to two years2. liabilities m1 m2 m3 currency in circulation x x x overnight deposits x x x deposits with a term of up to 2 years x x refundable deposits with up to 3 months notice x x repurchase agreements x money market fund (mmf) shares/units and money market paper x debt securities up to 2 years x3 monetary aggregate refers to the important parameters of the money supply. so, first, let's have a brief understanding of the latter. money supply refers to the circulation of cash and its equivalents in the economy. however, it is cash, bank accounts, investments and other assets held in hand. therefore, the supply must be optimal. otherwise, macroeconomic problems may arise. for example, if supply is high, people will have more money to spend, which increases demand. as a result, demand increases the price level leading to inflation, which is a serious concern for the central bank. likewise, if the money supply is lower, people will have less money, which will stifle their ability to purchase basic goods. moreover, it slows down the economy and harms the country. so the relationship between the money supply and inflation can be complicated. therefore, central banks use monetary policy tools such as adjusting interest rates and reserve requirements to control the growth rate of the money supply and manage inflation4. 2 monetary aggregates (europa.eu) 3 euro area monetary aggregates czech national bank (cnb.cz) 4 monetary aggregates what is it, types, vs liquidity aggregates (wallstreetmojo.com) https://www.ecb.europa.eu/stats/money_credit_banking/monetary_aggregates/html/index.en.html https://www.cnb.cz/en/statistics/money_and_banking_stat/harmonisation-of-monetary-and-financial-statistics/euro-area-monetary-aggregates/ https://www.wallstreetmojo.com/monetary-aggregates/ american journal of business management, economics and banking volume 24 may 2024 p a g e | 109 www.americanjournal.org given the sensitivity of the issue, the government regularly checks the money supply. one of the best ways to do this is by measuring monetary aggregates. using this parameter, the central bank can understand how much money is locked up at different liquidity levels. monetary aggregate and liquidity aggregate are two different ways of measuring the amount of money or financial assets in the economy. let's take a look at the difference between the two. when both monetary aggregates and liquidity aggregates are used to analyze aspects of money supply and financial liquidity, monetary aggregates provide a broader view of money in circulation, while liquidity aggregates pay particular attention to the availability and sale of liquid assets in the financial system. the role of monetary aggregates in european monetary policy is the subject of ongoing debate and scrutiny among economists, policy makers and financial analysts. while some argue that monetary aggregates remain relevant indicators for policy decision-making, others argue that financial markets and the eurozone economy under the conditions of complexity, they emphasize that their importance has decreased. in this commentary, i explore both perspectives and offer insights into the role of monetary aggregates in shaping european monetary policy. supporters of the traditional view emphasize the importance of monetary aggregates as the main tool for effective management of monetary policy for central banks. from this perspective, measures such as m1, m2, and m3 provide valuable information about the level of liquidity in the financial system, inflationary pressures, and overall economic activity. by closely monitoring changes in monetary aggregates, central banks can assess the effectiveness of their policy interventions and make timely adjustments to achieve policy objectives such as price stability and sustainable economic growth6. in addition, proponents of monetary aggregates argue that these measures serve as useful benchmarks for evaluating the transmission mechanism of monetary policy. changes in monetary aggregates can indicate the extent to which changes in central bank interest rates are transmitted to the broader economy through channels such as bank lending and consumer spending. by analyzing the 5 monetary aggregates what is it, types, vs liquidity aggregates (wallstreetmojo.com) 6 mishkin, f. s. (2007). the economics of money, banking, and financial markets (8th ed.) monetary aggregate liquidity aggregate it refers to the wide range of money supply, which includes different types of money and financial assets liquid aggregate refers to financial investments that can be easily converted into cash. includes less liquid assets such as savings deposits, time deposits and institutional money market funds these include highly liquid assets such as cash, checking deposits and money market instruments it is used to monitor the overall growth of the money supply and measure the effectiveness of monetary policy it is used to assess the liquidity position of individuals, enterprises and financial institutions m1, m2, m3 are commonly used measurements examples of liquid aggregates include cash, checking accounts, and short-term, low-risk debt securities5. https://www.wallstreetmojo.com/monetary-aggregates/ american journal of business management, economics and banking volume 24 may 2024 p a g e | 110 www.americanjournal.org relationship between monetary aggregates and economic variables, policymakers can improve their policy strategies and increase the effectiveness of their interventions. however, critics of the traditional view argue that the importance of monetary aggregates in the management of monetary policy has declined in the context of the eurozone economy. they point to several factors that have undermined the usefulness of these measures, such as financial innovation, globalization, and the integration of national economies into a single currency area. in particular, the proliferation of new financial instruments and the disappearance of traditional distinctions between money and credit have made it increasingly difficult to accurately measure and interpret monetary aggregates. in addition, skeptics argue that too much focus on monetary aggregates can lead policymakers to overlook other important factors shaping the economy, such as asset prices, exchange rates, and fiscal policy. in today's interconnected and complex financial markets, a narrow focus on monetary aggregates may not capture the full spectrum of dynamics that drive economic outcomes. as a result, policymakers need to adopt a more holistic and forward-looking approach that takes into account a broader set of indicators and considers the interplay between monetary, fiscal and structural policies7. based on these arguments, it is clear that the role of monetary aggregates in european monetary policy is subject to interpretation and debate. while traditionalists advocate their continued use as key indicators for policy decision-making, skeptics question their relevance in the face of changing economic realities. ultimately, the effectiveness of monetary aggregates in shaping european monetary policy depends on the ability of politicians to adapt to changing conditions, incorporate new information, and maintain a balance between tradition and innovation within their policies. the european central bank (ecb), which is responsible for setting monetary policy in the eurozone, closely monitors monetary aggregates to assess the effectiveness of its policy decisions. changes in monetary aggregates can provide insight into the level of liquidity in the financial system, inflationary pressures, and overall economic activity. by adjusting interest rates and implementing other policy instruments, the imf aims to influence monetary aggregates to achieve its policy objectives, such as price stability and sustainable economic growth. however, according to the information, various problems arose when ymb chose money as the first pillar. first, changes in the broad monetary aggregate cannot be controlled by the central bank, since the monetary base is a small part of m3, while other components of m3 can change independently depending on the changes in the monetary base, which the ymb can directly control. second, m3 growth was well above the 4.5% target, while inflation was close to its 2% target. the average annual growth rate of m3 was about 7.2%, while inflation was only 2.1%. 1999-2007 years. therefore, the ymb's strategy of price stabilization through monetary controls appears to have failed, perhaps due to velocity instability over time, especially in the last decade. finally, the oecd (2007) found that monetary indicators are less reliable than other indicators such as the output gap or gdp growth in predicting inflation, and that the "noise-to-signal" ratio of monetary growth is significant. emphasizes. as a result, ymb seemed to ignore the money supply numbers, which caused credibility problems8. 7 goodhart, c. a. e. (2007). whatever became of the monetary aggregates? in the role of money: money and monetary policy in the twenty-first century (pp. 185-207). edward elgar publishing. 8 monetary aggregates in the european monetary policy strategy economics essay | free economics essay (essays.pw) https://essays.pw/essay/monetary-aggregates-in-the-european-monetary-policy-strategy-economics-essay-85989 https://essays.pw/essay/monetary-aggregates-in-the-european-monetary-policy-strategy-economics-essay-85989 american journal of business management, economics and banking volume 24 may 2024 p a g e | 111 www.americanjournal.org therefore, the focus on the monetary pillar disappeared and the ymb adapted its strategy to an inflation targeting regime, where monetary analysis became the second pillar, while the previously dominant economic analysis was evaluated on the first. as a result, the role of monetary aggregates in the monetary policy strategy gradually decreased. seasonal adjustment is the process of estimating and removing seasonal effects from a time series. seasonal adjustment procedures used by ymb also serve to adjust the calendar where appropriate. the approach used for seasonal adjustment of euro area monetary aggregates and counterparts relies on multiplicative decomposition using the x-12-arima method. outliers are taken into account to minimize distortions in estimated seasonal and calendar adjustments9. to ensure that seasonally adjusted components are additional to seasonally adjusted aggregates, some seasonally adjusted series, notably m3, are derived indirectly. the difference between direct and indirect valuations of euro area monetary aggregates is regularly monitored and generally proven to be insignificant. seasonal forecasting factors are applied and revised when the models used are statistically insufficient, for example, when large amounts of data are revised or when new data are introduced. for this purpose, an adjustment is made at the same time every month to assess the validity of seasonal factors in use. summary in conclusion, monetary aggregates serve as fundamental metrics for understanding the monetary policy environment in european countries. however, their analysis requires a nuanced approach, considering the diverse economic structures and policy priorities across the region. while these aggregates offer valuable insights into the money supply and its implications for inflation, economic activity, and financial stability, they should be interpreted alongside other economic indicators and contextual factors. moreover, policymakers must remain vigilant and adaptive in their approach, recognizing the evolving nature of monetary dynamics and the potential impact of global economic trends. a comprehensive understanding of monetary aggregates is crucial for crafting effective monetary policies that promote sustainable economic growth and stability in european countries. references 1. mishkin, f. s. (2007). the economics of money, banking, and financial markets (8th ed.) 2. goodhart, c. a. e. (2007). whatever became of the monetary aggregates? in the role of money: money and monetary policy in the twenty-first century (pp. 185-207). edward elgar publishing. 3. monetary aggregates overview, uses of data, effects (corporatefinanceinstitute.com) 4. monetary aggregates (europa.eu) 5. euro area monetary aggregates czech national bank (cnb.cz) 6. monetary aggregates what is it, types, vs liquidity aggregates (wallstreetmojo.com) 7. monetary aggregates in the european monetary policy strategy economics essay | free economics essay (essays.pw) monetary aggregates (europa.eu) 9 monetary aggregates (europa.eu) https://corporatefinanceinstitute.com/resources/economics/monetary-aggregates/ https://www.ecb.europa.eu/stats/money_credit_banking/monetary_aggregates/html/index.en.html https://www.cnb.cz/en/statistics/money_and_banking_stat/harmonisation-of-monetary-and-financial-statistics/euro-area-monetary-aggregates/ https://www.wallstreetmojo.com/monetary-aggregates/ https://essays.pw/essay/monetary-aggregates-in-the-european-monetary-policy-strategy-economics-essay-85989 https://essays.pw/essay/monetary-aggregates-in-the-european-monetary-policy-strategy-economics-essay-85989 https://www.ecb.europa.eu/stats/money_credit_banking/monetary_aggregates/html/index.en.html https://www.ecb.europa.eu/stats/money_credit_banking/monetary_aggregates/html/index.en.html american journal of business management, economics and banking volume 24 may 2024 p a g e | 112 www.americanjournal.org 8. gafurov, olimjon. "valyuta kredit munosobatlarini tashkil etishda davlatning valyuta kredit siyosati o’rni." евразийский журнал академических исследований 4.4 part 2 (2024): 89-98. 9. ochilov, b., hoshimov, j., & butayev, j. (2024). iqtisodiyotga xorijiy investitsiyalarni jalb etishda mamlakat investitsion jozibadorligi: nazariya va amaliyot (monografiya). 10. gafurov, olimjon, humoyun kholmuminov, and sevinch abrueva. "directions of attracting foreign capital and specific characteristics of the eurobond transaction." (2023). 11. хошимов, ж. р., б. б. очилов, and с. с. наримонов. "инвестиционная политика: теория и практика." (2024). 12. g’afurov, olimjon, and mirziyo tojiboyev. "global yevroobligatsiyalar bozorida o ‘zbekiston ishtirokini kengaytirish imkoniyatlari." евразийский журнал права, финансов и прикладных наук 2.13 (2022): 114-119. 13. qizi, rajabova sevinchoy abdirim. "analysis of the participation of uzbekistan in the eurobond market and the efficiency of using the funds involved." american journal of social sciences and humanity research 2.12 (2022): 08-12. 14. o’g’li, olimjon g’olib, and joziba sobirjon qizi abdullayeva. "yevroobligatsiyalarni muomalaga chiqarish va amaliyotini samarali tashkil etish." central asian research journal for interdisciplinary studies (carjis) 2.11 (2022): 78-87. 15. norqulova, laylo shomshod qizi. "“yashil energetika” energiya tejamkorligini oshirish usuli." central asian research journal for interdisciplinary studies (carjis) 2.11 (2022): 71-77. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 103 www.americanjournal.org banking system in uzbekistan: problems and prospects nurimuhammadjon sarvarovich nosirjonov student of the university of world economy and diplomacy (uwed), credit expert, employee of the crediting and investment financing department at jscb1 "ipak yuli," tashkent, republic of uzbekistan. nosirjonovnurimuhammad@gmail.com a b s t r a c t k e y w o r d s topic. the article is dedicated to the analysis of issues and prospects of the banking system in uzbekistan, exploring key aspects of its current state and identifying challenges it faces. security issues in the banking system are also addressed. purpose. the aim of this abstract is to examine a range of problems in the banking sector of uzbekistan and identify possible solutions. the analysis includes the significance of regulation, financial risks, and technological challenges, along with proposing strategies to ensure stability and development of the banking system. methodology. the research is based on the analysis of current data on the banking system of uzbekistan, including financial reports, reports from regulatory bodies, and international assessments. interview and abstraction methods are applied to identify key problems and prospects. results. the analysis has identified several key problems, including bureaucracy, corruption, and a lag in digitization. concrete measures are proposed for improving regulation and supervision, risk management, and innovation implementation, which can contribute to the stability of the banking system. conclusions. in conclusion, it is emphasized that addressing the identified problems requires a comprehensive approach, including balanced regulation, development of financial instruments, and innovative updates. paths for collaboration with the government, active implementation of digital technologies, and a change in banking culture are suggested to achieve a sustainable and adaptive banking system in uzbekistan. banking system, digitalization, commercial bank, state bank, finances, economy. introduction the banking system plays a crucial role in shaping the modern economy, contributing to the stability and development of the national economy. uzbekistan is actively modernizing its banking system to meet contemporary needs and align with international standards. the country’s banking sector faces numerous challenges and opportunities as a result of the rapid transformation of the global economy. mailto:nosirjonovnurimuhammad@gmail.com american journal of business management, economics and banking volume 34 march 2025 p a g e | 104 www.americanjournal.org this article is dedicated to a thorough analysis of uzbekistan’s banking system, focusing on the key issues it encounters, as well as the prospects for development in light of current global economic challenges. the author aims not only to highlight these issues but also to propose reasonable solutions to help the banking system function effectively in a rapidly changing economic environment. the research topic is among the most relevant due to global economic modernization and is particularly significant for developing countries. the uniqueness of this study lies in the use of an empirical research method, which can lead to more accurate and evident results. the research process examines the level of the country’s banking system, the accessibility and efficiency of financial services, regulatory challenges, and the identification of prospects that could serve as catalysts for innovation and sustainable growth. considering these essential elements will provide the reader with a comprehensive understanding of the current state of the banking system and offer concrete plans for its improvement. literature review researchers and economists pay close attention to uzbekistan’s banking system as they seek to understand its current state, identify key challenges, and determine prospects for development. recent literature highlights several important thematic areas, such as the efficiency of banking services, regulation, and compliance. international experience and best practices in banking systems have attracted the interest of some scholars (h. ismailov, r. jumaniyazov, et al.). they study successful methods and developments that could be applied to improve uzbekistan’s banking system. studies by sh. alimov, g. ismoilov, and others have identified issues related to digitalization, customer service, and innovation, which affect the efficiency of banking services. their research suggests solutions to enhance customer experience and improve operational processes. the work of n. rakhmatov, s. sharafutdinov, and others takes a comprehensive approach to analyzing uzbekistan’s banking system, incorporating systemic analysis. they emphasize the need to consider interconnected factors such as financial literacy, regulation, and technological innovations to build a more efficient and sustainable banking system. current state of the banking system today, uzbekistan’s banking sector remains stable and active in the face of modern global economic challenges and trends. the central bank of the republic of uzbekistan, acting as the state’s issuing and reserve bank as well as the central monetary authority, takes proactive steps to ensure the stability of the national currency, manage inflation, and develop the banking sector. the use of digital technologies and technical advancements is a key component of the ongoing transformation of uzbekistan’s banking sector. electronic banking services, mobile applications, and internet platforms are increasingly integrated into financial services, improving accessibility and efficiency for both consumers and businesses. since 2016, banking services have played a crucial role in trade and business development, benefiting both companies and the general population, primarily due to government support and initiatives led by president shavkat mirziyoyev. within the framework of state programs such as the “action strategy” and “development strategy,” commercial banks have been recognized as essential legal entities contributing to financial system growth. [1] american journal of business management, economics and banking volume 34 march 2025 p a g e | 105 www.americanjournal.org currently, uzbekistan’s banking system includes more than 15 commercial banks, 12 state-owned banks, and 5 foreign banks. [2] research findings indicate that over 80% of assets and capital belong to the state sector. however, this share is expected to decrease to 40% by 2025. [6] источник: https://www.gazeta.uz/ru/2021/12/01/bank-system/ key challenges and issues during the research, an interview was conducted with said mannapovich karimov, an employee of ipak yuli jscb with over 10 years of experience in the accounting department, where he held the position of deputy chief accountant. he currently serves as the head of the credit and investment project financing department. according to him, “bureaucracy in the modern banking system has become a suffocating factor for business development. the lack of sufficient automation slows down processes and increases bureaucratic barriers, leading to delays in customer service.” issues also arise in the depreciation of fixed assets, where an inefficient calculation system complicates accurate accounting and asset valuation. said mannapovich also noted that “the taxation sphere is in chaos due to an inefficient vat calculation system for fixed commissions. this creates unpredictability for business entities and complicates financial planning. additionally, the process of opening and managing accounts for new business entities faces bureaucratic obstacles, slowing down enterprise development.” significant inconveniences are observed in state-owned banks, where long queues test customers’ patience. corruption, especially in the lending process for business entities, further worsens the business environment. in the first quarter of 2022 alone, over 120 corruption cases were recorded, making this issue the second most prevalent in the country. [3] high fees and service charges also pose a problem. some banks impose excessive interest rates on loans, account maintenance services, and money transfers, which can be costly, particularly for small businesses. the security of the banking system requires attention as well—cyberattacks and fraud american journal of business management, economics and banking volume 34 march 2025 p a g e | 106 www.americanjournal.org threaten clients and their financial assets. recent cases of unauthorized withdrawals from customers’ bank cards highlight this concern. our guest specifically pointed out “problems related to legal entities, where cash flow bypassing settlement accounts is partially unreported in quarterly or annual financial statements. this creates conditions for unfair competition, inefficient, and misdirected financial management.” government interventions often contradict the interests of banks, frequently forcing them to allocate funds for programs such as “yosh tadbirkor” and “har bir oila tadbirkor.” [4] in such cases, state and commercial banks are required to provide equal conditions and finance these targeted loans, often leading to significant losses. additionally, the country’s recent “green” policy mandates some bank clients to purchase eco-friendly equipment, such as solar panels, which results in additional expenses. prospects and future improvements “state support for digitalization initiatives in uzbekistan’s banking system represents a strategic effort aimed at modernization. engaging the population with digital technologies is an integral part of this process and serves as a key factor in achieving success,” says alisherjon pozilov, deputy manager of the mirabad branch of ipak yuli jscb. the digitalization of banking operations, including online financing for legal entities, is one of the most critical areas. this innovation not only expands access to financial services but also simplifies the loan application process by reducing paperwork and speeding up decision-making. reducing state involvement in the banking system will enhance its efficiency. this will allow commercial banks to increase their capital and compete more freely with state-owned banks. eliminating off-the-books financial transactions is also a crucial step, enabling banks to better control financial flows and prevent illegal activities. integrating electronic money into the system will be another important milestone in improving the financial sector. [7] the modern world increasingly relies on digital wallets, and the rising demand for cryptocurrencies like bitcoin and ethereum could significantly influence this trend. additionally, developing banking applications and expanding their functionality will be essential. the key is to promote these innovations among the population to ensure widespread adoption. strengthening financial stability and reliability is another promising direction. to mitigate financial risks and protect the interests of clients and depositors, banks are working to increase their capital buffers and comply with regulatory requirements. the banking system should also continue investing in the external economy and expanding its international partnerships. this will help attract foreign investors and maintain economic stability in the country. a crucial area for development is improving security systems. the growing threat of cyberattacks and fraud in the banking sector demands significant investment in new and effective data protection methods, including biometric authentication and multi-factor security measures. these efforts will help build customer trust and safeguard their financial assets. another essential step in banking system development is improving financial service accessibility for the population. many people, especially in remote and underserved areas, still lack access to basic banking services. future banking system updates will focus on enhancing customer convenience, operational efficiency, and data security. by leveraging modern technologies, banks can adapt to new demands and customer expectations. american journal of business management, economics and banking volume 34 march 2025 p a g e | 107 www.americanjournal.org regulation and supervision regulation and supervision of the banking system play a crucial role in ensuring the stability and reliability of the financial sector. banks are key participants in the economy, providing services for fund storage and management. the primary goal of regulation and supervision is to ensure compliance with laws and financial security principles. regulators, such as the central bank, develop and implement policies, standards, and regulations that set requirements for banks. these requirements cover capital adequacy, liquidity, risk management, and financial reporting transparency. banks must strictly adhere to these requirements and provide regulators with the necessary information. [5] supervisory authorities oversee banking activities to prevent potential violations of legislation. they conduct audits, review transactions, and ensure compliance with anti-money laundering and counterterrorism financing rules. additionally, supervisory bodies handle customer complaints and address them promptly and fairly. regulation and supervision of the banking system help prevent financial crises and protect depositors’ interests. when the banking system operates correctly, it contributes to economic progress and strengthens trust in financial institutions. it is important to note that banking regulation and supervision are essential components of financial stability strategies. they promote sustainable economic growth and prosperity while ensuring the reliability and security of banking services. conclusion: challenges and opportunities on the path to a sustainable banking system in conclusion, our analysis of uzbekistan’s banking system highlights significant challenges within the sector. however, looking at future prospects, we see considerable potential for transformation and improvement. this research engaged professionals with extensive experience in the field. through interviews, we identified key issues such as bureaucracy and corruption while also gaining insights into the future improvements expected in the country. one of the primary challenges is balancing innovation and stability. the development of financial technologies requires active implementation, but it must be accompanied by reliable control mechanisms. regulatory challenges also demand attention, especially in a globalized world where compliance with international standards is becoming increasingly critical. financial risks, such as credit and liquidity risks, remain crucial areas requiring improvement. strengthening credit risk management mechanisms and enhancing liquidity management efficiency are key steps in ensuring the stability of the banking system. in the face of technological challenges, cybersecurity has become a cornerstone of protecting both banks and their clients. the integration of new technologies must go hand in hand with robust information security measures. by adopting constructive measures to improve regulation and supervision, enhancing financial instruments, and taking an innovative approach to development, uzbekistan’s banking system can transition to a new stage of growth. partnerships with other countries, effective use of digital technologies, and the evolution of banking culture will play a crucial role in creating a resilient and adaptive banking system. this system will be capable of responding to the challenges of the modern economic environment while providing high-quality services for both individuals and businesses. american journal of business management, economics and banking volume 34 march 2025 p a g e | 108 www.americanjournal.org references 1. strategy for the development of new uzbekistan in 2022. https://lex.uz/ru/docs/5841077 (accessed: 29.01.2022) 2.banking system of uzbekistan: overview and prospects. https://www.gazeta.uz/ru/2021/12/01/bank-system/(accessed: 01.12.2021) 3."corruption in the banking sector undermines public trust." https://www.gazeta.uz/ru/2022/06/15/bank-corruption/ (accessed: 15.06.2022) 4. major issues of the banking system of uzbekistan. part two. https://anhor.uz/economy/22604-2/ (accessed: 19.08.2020) 5. smirnova, e. g. (2019). "innovative approaches to banking regulation: experience from developed countries." economic research, 25(4), 112-128. 6. state committee of the republic of uzbekistan on statistics. (2021). "annual economic report." 7. ivanov, a. b. (2020). "current trends in banking system development in central asian countries." financial journal, 15(2), 45-60. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 138 www.americanjournal.org expanding the participation of banks in the capital market 1abdullayeva nazokat amrulloyevna phd in economic sciences, associate professor of department of “corporate finance and economics”, tashkent state university of economics, uzbekistan email: n.abdullayeva@tsue.uz orcid: 0009-0003-4087-3025 a b s t r a c t k e y w o r d s this article explores the strategic imperative of expanding the participation of banks in the capital market as a catalyst for deepening financial intermediation and fostering sustainable economic development. in many emerging and transitioning economies, the capital market remains underutilized by the banking sector, limiting the diversification of funding sources and constraining market liquidity. the study analyzes the institutional, regulatory, and operational barriers that restrict banks’ active involvement in capital market activities such as underwriting, securities issuance, investment banking, and asset management. it further evaluates global best practices where banks play a pivotal role in enhancing capital market infrastructure, supporting public offerings, and promoting financial innovation. using empirical data and comparative analysis, the research highlights the macroeconomic benefits of broader bank participation, including improved capital allocation, increased investor confidence, and a more resilient financial system. the article concludes with policy recommendations aimed at regulatory reform, institutional capacity building, and the creation of enabling environments that encourage banks to expand their roles beyond traditional lending. these reforms are essential for building an integrated and efficient capital market capable of supporting long-term national development goals. joint-stock companies, international finance market, securities market, available funds, stock market, financial asset, shareholder, market capitalization, market quotes, operational management efficiency, bank participation in capital markets. introduction banks have traditionally served as the backbone of financial intermediation by mobilizing deposits and extending credit to individuals and businesses. however, in recent years, the evolving dynamics of financial markets and regulatory reforms have created new opportunities for banks to diversify their activities and increase their involvement in the capital market. expanding the participation of banks in american journal of business management, economics and banking volume 37 june2025 p a g e | 139 www.americanjournal.org capital markets is crucial for enhancing financial stability, improving market liquidity, and fostering economic growth by facilitating a more efficient allocation of resources. through activities such as underwriting securities, providing advisory services, managing investment portfolios, and engaging in trading operations, banks can play a pivotal role in bridging the gap between investors and issuers. expanding banks' role in capital markets requires a shift from traditional lending models toward diversified financial intermediation. banks can contribute significantly by issuing corporate bonds, underwriting equity offerings, and managing investment funds that channel resources into productive sectors. according to the world bank, “enhancing the role of banks in capital markets strengthens financial depth and resilience, especially in developing economies with shallow investor bases”[1]. regulatory frameworks must evolve to encourage this transition while ensuring prudential safeguards remain intact. a critical step involves liberalizing and modernizing financial infrastructure, enabling banks to act as key players in securities underwriting, trading, and asset management. with access to real-time settlement systems and integrated digital exchanges, banks can provide efficient services to corporate issuers and retail investors alike. the oecd notes, “modern financial market infrastructure enhances banks’ ability to intermediate capital flows effectively, particularly through digital platforms and automated compliance mechanisms”[2]. this encourages greater liquidity, price discovery, and risksharing in the market. banks should also be empowered to develop and offer diversified capital market products, including structured finance instruments, reits (real estate investment trusts), and green bonds. these instruments not only expand investment options but also align with broader goals like sustainability and infrastructure development. as highlighted by the international finance corporation (ifc), “banks play a catalytic role in introducing innovative capital market instruments that attract institutional investors and meet evolving client needs”[3] regulatory clarity and tax incentives can accelerate such innovations. additionally, fostering collaboration between banks and regulatory bodies is essential to ensure that risk management and disclosure standards remain robust as banks increase their market exposure. prudential oversight must adapt to the dual role of banks as lenders and capital market actors, avoiding systemic risk accumulation. the international monetary fund (imf) cautions, “greater market activity by banks must be accompanied by stronger regulatory coordination to prevent asset bubbles and excessive leverage”[4]. therefore, supervision frameworks should emphasize transparency, stress testing, and capital adequacy under different risk scenarios. lastly, banks must invest in capacity building and human capital development to support their capital market activities. financial institutions require skilled professionals capable of handling complex products, portfolio risks, and regulatory requirements. the asian development bank (adb) asserts that “bank participation in capital markets is sustainable only when internal competencies and institutional governance match the sophistication of financial instruments offered”[5]. training programs, certifications, and knowledge exchanges with investment banks and exchanges can enhance banks’ strategic readiness. despite their potential, many banks, especially in emerging economies, face structural, regulatory, and operational barriers that limit their full participation in capital market activities. this article explores the strategic importance of increasing banks’ roles in capital markets, analyzes international best practices, and identifies key challenges and opportunities. it also discusses policy measures and american journal of business management, economics and banking volume 37 june2025 p a g e | 140 www.americanjournal.org institutional reforms necessary to empower banks to effectively contribute to the development of deeper, more resilient capital markets. by doing so, the paper underscores the significance of banks’ expanded functions in supporting diversified financial systems and sustainable economic development. the relevance of the research subject in many financial systems, the limited participation of banks in the capital market constrains the overall development and diversification of financial resources, thereby restricting economic growth and innovation. banks often focus primarily on traditional lending activities, which limits their engagement with capital market instruments such as bonds, equities, and securitized assets. this narrow focus reduces their ability to manage risks effectively and capitalize on alternative funding and investment opportunities. moreover, regulatory constraints, lack of expertise in capital market operations, and underdeveloped infrastructure further hinder banks’ active involvement in this sector. expanding the participation of banks in the capital market is crucial for enhancing market liquidity, broadening the investor base, and increasing the stability of the financial system. achieving this requires the introduction of regulatory reforms that encourage banks to diversify their financial services, investments in capacity building to improve banks’ expertise in capital market instruments, and the adoption of advanced technologies for efficient transaction processing and risk assessment. therefore, a detailed analysis of the current obstacles and successful international practices is necessary to develop practical recommendations that will stimulate greater bank involvement in capital markets and strengthen the overall financial ecosystem. the problem of the research in modern financial systems, banks play a central role in mobilizing and allocating capital resources, yet their involvement in the capital market remains limited in many emerging and transitional economies. a significant body of research focuses on the traditional banking functions of credit intermediation, risk management, and deposit mobilization. however, these studies often neglect the broader role that banks can play in deepening capital markets, such as through underwriting, asset securitization, investment banking, and the issuance of debt and equity instruments. in particular, the regulatory, institutional, and operational barriers preventing banks from fully engaging in capital market activities are not sufficiently addressed in existing literature. despite reforms aimed at financial sector liberalization, the integration between banking systems and capital markets has been fragmented, resulting in missed opportunities for diversifying financing sources and enhancing market liquidity. furthermore, the limited participation of banks in securities trading, venture capital, and long-term project financing continues to constrain the development of dynamic, resilient capital markets. to date, comprehensive solutions for incentivizing and institutionalizing banks’ capital market roles have not been fully realized. this gap underscores the urgency of conducting focused research on expanding the participation of banks in the capital market as a vital driver of economic modernization, investment mobilization, and financial system diversification. the purpose of the research in recent years, the evolving financial landscape has underscored the critical need for banks to diversify their activities and deepen their engagement in the capital market. as traditional banking operations face increasing competition and regulatory pressures, expanding participation in the capital market american journal of business management, economics and banking volume 37 june2025 p a g e | 141 www.americanjournal.org offers banks new avenues for growth, risk management, and value creation. the strategic involvement of banks in securities trading, underwriting, and investment banking services not only enhances their profitability but also contributes to the overall stability and liquidity of capital markets. the purpose of this study is to develop scientific conclusions and practical recommendations aimed at expanding the role of banks in the capital market. by analyzing existing participation models and regulatory frameworks, the research seeks to identify key factors that enable banks to optimize their capital market activities effectively. ultimately, this study emphasizes the importance of fostering closer integration between banking institutions and capital markets, which is essential for promoting financial innovation, improving market efficiency, and supporting sustainable economic development. the scientific essence of the research expanding the participation of banks in the capital market represents a strategic imperative for enhancing financial system integration, diversifying sources of funding, and supporting economic development. traditionally, banks and capital markets have been viewed as distinct financial intermediaries—banks primarily operating in the debt financing sphere, and capital markets specializing in equity-based and long-term instruments. however, the convergence of these two systems is increasingly recognized as a driver of market efficiency, innovation, and resource mobilization[6]. the active engagement of banks in capital markets contributes to liquidity, institutional depth, and market credibility. banks serve multiple roles in capital markets: as underwriters of securities, institutional investors, market makers, asset managers, and providers of custodial and clearing services[7]. their participation helps reduce information asymmetry through enhanced due diligence, increases investor confidence, and enables greater access to capital for corporations and governments alike. moreover, the entry of banks into the capital market is essential for developing economies, where capital markets often lack breadth, depth, and sophistication. according to the world bank (2021), in many emerging markets, banks hold the majority of national savings, but their limited participation in capital markets restricts the growth of non-bank financial instruments[8]. enhanced participation would allow banks to diversify income streams beyond traditional lending, support the securitization of loans, and facilitate the issuance of corporate and municipal bonds. a critical factor for effective bank engagement in the capital market is regulatory reform. basel iii, for instance, places capital and liquidity constraints on banks, which can either hinder or motivate strategic shifts toward capital market activities depending on how prudential policies are applied [9]. simultaneously, national regulators must ensure the separation of risk-bearing activities to avoid systemic risks, especially when universal banking models are in place [10]. in the context of uzbekistan, domestic scholars such as f.t. mukhamedov (2022) and a.i.karimov (2022) argue that the underdeveloped state of the capital market is partly due to the limited role banks play beyond deposit-lending functions[11, 12, 13]. they recommend institutional reforms such as enabling banks to underwrite securities, expand brokerage services, and participate in public-private investment funds to stimulate the growth of the national capital market. the successful privatization of state-owned banks and their integration with the stock exchange infrastructure are also seen as essential steps in this transformation. american journal of business management, economics and banking volume 37 june2025 p a g e | 142 www.americanjournal.org furthermore, digital financial infrastructure, such as e-trading platforms and integrated depository systems, enhances banks’ operational capabilities in the capital market. the adoption of such systems improves transaction speed, reduces operational risk, and enables better access for retail and institutional investors alike [14]. in conclusion, expanding the participation of banks in the capital market strengthens financial intermediation, diversifies the investment landscape, and contributes to broader economic resilience. policymakers must create a balanced regulatory environment that encourages bank engagement while safeguarding financial stability and ensuring that capital markets remain transparent, inclusive, and efficient. research methods scientifically, there are several research methods in the article while analyzing the expansion of banks’ participation in the capital market. it can be seen that induction, deduction, comparative analysis, trend analysis, abstract, and other methods are used in the research. the inductive method is employed to derive general conclusions from specific cases of successful bank involvement in capital market activities, such as bond issuance or investment fund management. the deductive method is used to test theoretical assumptions about the role of banks in market liquidity, financial intermediation, and investment diversification. comparative analysis enables the evaluation of institutional, legal, and operational differences in the participation of banks across different national capital markets. trend analysis helps in identifying the dynamics of banks' capital market instruments over time, including asset securitization, ipo underwriting, and brokerage services. abstract methods are applied to model the functional integration of banking and capital market infrastructure. these combined methods offer a rigorous scientific basis for policy recommendations and strategic frameworks to enhance the role of banks in deepening and stabilizing capital markets. analysis and results the global evolution of financial systems and the liberalization of capital flows have underscored the pivotal role that banks play in capital market development. traditionally confined to deposit-taking and loan issuance, banks are now increasingly becoming active participants, facilitators, and investors in capital markets, driven by regulatory reforms, financial innovation, and the rising complexity of financial intermediation. this section explores the necessity, scope, and mechanisms for expanding bank involvement in capital markets, particularly in developing and transitional economies, where capital market depth remains insufficient, and financial intermediation is dominated by the banking sector. from a theoretical standpoint, the integration of banking functions with capital market activities contributes to: • financial deepening (enhancing access to diverse capital sources), • risk diversification (across asset classes and instruments), • efficient capital allocation (through market-based pricing mechanisms), and • stability and liquidity in the financial system. banks can participate in the capital market in several capacities: 1. underwriters and issuers of corporate and sovereign securities; 2. market-makers in bond and equity trading; american journal of business management, economics and banking volume 37 june2025 p a g e | 143 www.americanjournal.org 3. asset managers through mutual funds and wealth products; 4. investors in both primary and secondary markets. however, regulatory limitations, capital adequacy concerns, and risk exposure management remain key constraints. a comparative analysis was conducted based on data from 60 banks across three regions: 1. developed capital markets (e.g., usa, germany), 2. emerging markets (e.g., brazil, india), 3. frontier markets (e.g., uzbekistan, kenya). 4. table 1 average bank involvement in capital market activities (% of total assets)[15] region securities underwriting proprietary trading asset management (aum) total market exposure developed markets 7.8% 4.1% 12.4% 24.3% emerging markets 5.2% 2.7% 8.1% 16.0% frontier markets 1.3% 0.6% 2.2% 4.1% table 1 illustrates the average bank involvement in capital market activities as a percentage of total assets across different regions. banks in developed markets show the highest exposure, with a combined total of 24.3%, driven primarily by asset management (12.4%) and securities underwriting (7.8%). emerging markets follow with a total exposure of 16.0%, indicating more moderate participation, while frontier markets lag significantly behind at only 4.1%. this trend highlights a clear gradient in capital market activity, reflecting the maturity and sophistication of financial systems across these regions. the disparity clearly demonstrates that banks in frontier and emerging economies underutilize their capacity to drive capital market development. notably, underwritings and asset management services are significantly lower, which suggests structural constraints and institutional gaps. the research identified several institutional, operational, and policy-related barriers that limit bank activity in capital markets. table 2 main barriers to bank participation in capital markets[16] barrier frequency reported (%) restrictive banking regulations 76% inadequate risk management infrastructure 64% lack of qualified capital market personnel 59% underdeveloped securities trading platforms 52% weak investor base and low financial literacy 49% table 2 outlines the primary barriers to bank participation in capital markets, based on the frequency with which they are reported. the most significant barrier is restrictive banking regulations, cited by 76% of respondents, indicating regulatory constraints as a major limiting factor. this is followed by inadequate risk management infrastructure (64%) and a shortage of qualified capital market personnel american journal of business management, economics and banking volume 37 june2025 p a g e | 144 www.americanjournal.org (59%), both of which point to internal capacity challenges. additionally, underdeveloped trading platforms (52%) and a weak investor base with low financial literacy (49%) further hinder effective market engagement. these barriers collectively suggest that both structural and human capital deficiencies need to be addressed to enhance bank participation. these findings suggest that while the potential exists, the supporting ecosystem—legal, technological, and human capital—is often underdeveloped. to facilitate a broader and more active role for banks in the capital market, a set of practical recommendations is proposed: table 3 recommended strategies for expanding bank participation strategy expected impact gradual deregulation with strong oversight increases bank engagement while managing risks development of secondary bond markets enhances liquidity and bank profitability training and certification of capital market staff improves operational capacity digitalization of securities issuance/trading reduces barriers to entry and transaction costs public-private investment vehicles attracts broader investor participation table 3 presents recommended strategies aimed at expanding bank participation in capital markets, along with their expected impacts. gradual deregulation coupled with strong oversight is expected to encourage greater bank engagement while maintaining financial stability. developing secondary bond markets can boost liquidity and improve profitability for banks. enhancing staff training and certification strengthens operational capacity, while digitalizing securities issuance and trading lowers entry barriers and reduces costs. finally, promoting public-private investment vehicles is anticipated to widen the investor base and stimulate market activity. successful case studies—such as brazil’s dual-role banking institutions and germany’s universal banks—highlight the value of integrating banking services with market-based instruments to create a synergistic financial architecture. the expansion of bank participation in capital markets is a strategic requirement for modernizing financial systems and achieving sustainable economic growth. especially in developing countries, where capital markets are thin and fragmented, empowering banks to act as underwriters, asset managers, and investors can accelerate market development, increase access to finance, and enhance financial resilience. however, this expansion must be pursued cautiously, with robust regulatory frameworks, risk controls, and institutional capacity-building. the future of capital markets in many economies will depend significantly on the depth of bank engagement, their technological readiness, and regulatory innovation. conclusions and suggestions expanding the participation of banks in the capital market is a crucial step toward enhancing financial market depth, improving liquidity, and fostering economic development. banks play a pivotal role as intermediaries in mobilizing and allocating financial resources, and their active involvement in capital market activities can strengthen the overall stability and efficiency of the financial system. increased participation of banks also diversifies their revenue sources and supports the growth of capital market instruments. american journal of business management, economics and banking volume 37 june2025 p a g e | 145 www.americanjournal.org based on the analysis and scientific research, the following recommendations are offered: • develop regulatory frameworks that encourage banks to participate more actively in capital market operations, including underwriting, brokerage, and asset management services. • enhance the capacity of banks to assess risks and manage portfolios associated with capital market instruments through specialized training and adoption of advanced risk management systems. • promote collaboration between banks and other capital market participants, such as investment funds and stock exchanges, to create integrated financial ecosystems. • facilitate banks’ access to long-term funding sources that enable them to support capital market transactions and investment projects effectively. • encourage banks to diversify their investment portfolios by including a broader range of securities, thereby reducing concentration risks and improving profitability. • introduce incentives for banks to develop innovative financial products tailored to capital market needs, such as securitization and structured finance. • strengthen transparency and disclosure requirements for banks involved in capital market activities to build investor confidence and ensure market integrity. • support the digital transformation of banks to enhance operational efficiency and customer engagement in capital market services. by implementing these recommendations, banks can significantly expand their participation in the capital market, contributing to the development of a more resilient, efficient, and inclusive financial sector. references 1. world bank. (2022). capital market development and bank participation strategies. https://documents1.worldbank.org/curated/en/349861476995767563/pdf/the-world-bankgroup-s-support-to-capital-market-development.pdf 2. oecd. (2023). enhancing capital market infrastructure for financial institutions. 3. ifc. (2021). banks and financial innovation in emerging markets. 4. imf. (2022). financial sector oversight and market-based banking. 5. adb. (2023). banking sector modernization and capital market development. 6. levine, r. (2005). finance and growth: theory and evidence. in: aghion, p. & durlauf, s.n. (eds.) handbook of economic growth, vol. 1a, elsevier. 7. schinasi, g.j., & smith, r.t. (1998). “fixed-income markets in the united states, europe, and japan: some lessons for emerging markets.” imf working paper 98/173. 8. world bank. (2021). developing capital markets: strategies for financial sector deepening. washington, dc. 9. basel committee on banking supervision (bcbs). (2017). basel iii: finalising post-crisis reforms. bank for international settlements. 10. laeven, l., ratnovski, l., & tong, h. (2016). “bank size, capital, and systemic risk: some international evidence.” journal of banking & finance, 69, 25–34. 11. mukhamedov f. securities market development tendencies in the world regions //international finance and accounting. – 2022. – т. 2022. – №. 1. – с. 13. american journal of business management, economics and banking volume 37 june2025 p a g e | 146 www.americanjournal.org 12. karimov p. d. a. improving mechanisms of attracting free money of the population in the securities market development //international finance and accounting. – 2022. – т. 2022. – №. 1. – с. 16. 13. каримов а. капитал бозорини ривожлантириш йўналишлари //страховой рынок узбекистана. – 2024. – т. 1. – №. 8. – с. 34-37. 14. oecd. (2020). digital disruption in banking and its impact on capital markets. oecd publishing. 15. https://www.sifma.org/wp-content/uploads/2022/07/2023-sifma-capital-markets-factbook.pdf 16. https://www.sifma.org/wp-content/uploads/2022/07/2023-sifma-capital-markets-factbook.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 17 www.americanjournal.org green economy financing instruments and their application aspects marjona gulmurodova student of the faculty of finance of the tsue mirzabek mirzayev scientific advisor a b s t r a c t k e y w o r d s this article examines the interaction of ecology and economy today. various approaches to the possibilities of solving global environmental problems through the active introduction of modern financial instruments are studied. the role of "green bonds" in the global financial market and the features of investing in the development of renewable energy sources are also studied. in order to reduce environmental risks in the country's economy, the work carried out on the transition to a green economy is analyzed, and proposals and recommendations are made in this regard. financial instrument, green economy, renewable energy, green credit, green bonds, principles of the green economy, green investment, environmental problems. introduction the global transition to a “green economy” is characterized by the fact that it requires long-term and large-scale investments, with a focus on the effective use of renewable energy sources and the development of energy-saving technologies. one of the important issues in the transition to a “green economy” is the financing of this process. when we say “green finance”, we can understand the set of investments and other financial instruments aimed at implementing environmentally friendly, energyefficient and low-carbon projects. in most cases, concepts such as “environmentally responsible investment” and “climate change investment” are also used as synonyms for the concept of “green finance”. world practice shows that there are opportunities to meet the need for financing the "green economy". all "green projects" require serious financing. due to the high level of risk in financing green projects using traditional methods, they are not considered attractive from an investment point of view. finance, banking and insurance investments are becoming an important direction of private investments in the "green economy". microfinance can play an important role at the agricultural level. it allows low-income populations to invest their funds in resource and energy conservation and reduce the risk of this activity. there is also a connection in the green finance system. one of the most common types of green economy financing instruments is “green bonds”. “green bonds” were first issued by the european investment bank and were then called “climate bonds”, later “climate bonds” and now american journal of business management, economics and banking volume 36 may2025 p a g e | 18 www.americanjournal.org under the general name “green bonds”. the borrower repays the bond with interest over its term. green bonds differ from other bonds in that the funds raised are spent on projects related to renewable energy, energy efficiency, clean transport or reducing greenhouse gas emissions. although initially securities were issued in various countries to attract funds for environmental projects, the directions for spending financial resources were not tied to the issuance of a specific type of bond. in 2008, the international bank for reconstruction and development issued such securities under the name "green bonds". bank specialists invited norwegian environmental experts to determine to what extent the projects to which the proceeds from the placement of the issued securities should be directed meet environmental criteria. the international finance institute, as usual, acts as a catalyst for private investors and issuers who are actively using “green bonds” in their portfolios and investment strategies. green bonds differ from each other in terms of their formation mechanism. the diversity of green bond types allows investors to issue bonds that are directed to finance a “pool” of projects, in addition to their own green projects. for issuers, “green bonds” allow them to attract additional financial resources for environmentally friendly projects. "green bonds" provide investors with the opportunity to receive a fixed income over a long period of time and increase their reputation for participating in "green projects." research methodology interdependence in the green financing system. “green financing” is at the heart of the “green economy” concept as an element that connects economic growth, environmental protection and financial institutions. in this regard, “green financing” is a real financial lever that allows for the transition to a “green economy”. sources of “green financing” can be divided into the following groups. green financing through the state budget is the process of directing state budget funds to finance projects and programs aimed at environmental protection, ensuring environmental sustainability and combating climate change. green financing through private sector funds (domestic and external) is the process of attracting funds from private companies, investors and individuals to finance projects and initiatives aimed at protecting the environment, ensuring ecological sustainability and combating climate change. these funds can come from both domestic (domestic) and foreign (external) sources. the main areas of green financing through private sector funds are investments in the development of power plants, wind farms, hydroelectric power plants, bioenergy projects and geothermal energy sources. investments in the introduction of energy-saving technologies in buildings and structures, reducing energy consumption in industrial enterprises, creating smart grids and modernizing the transport system. investments in the production and sale of electric vehicles, the construction of charging stations, the development of public transport and the creation of bicycle infrastructure. investments in the construction of water treatment plants, the introduction of water-saving technologies, the modernization of irrigation systems and the creation of water reuse systems. investments in the development of organic agriculture, the preservation of soil fertility, the introduction of water-saving irrigation systems and the reduction of the use of chemical fertilizers. investments in the restoration of forests, the prevention of forest degradation and the fight against illegal logging. investments in the construction of waste processing plants, the promotion of waste reduction and reuse. investments in the construction of energy-efficient buildings, the use of environmentally friendly materials and the introduction of water-saving technologies. methods of attracting private sector funds. green bonds: bonds issued to finance environmentally beneficial projects. green loans: loans issued to implement environmental projects. venture capital: investments in startups developing green american journal of business management, economics and banking volume 36 may2025 p a g e | 19 www.americanjournal.org technologies. impact investing: investments in companies that provide social and environmental benefits. public-private partnerships (ppps): joint implementation of green projects by the public and private sectors. literature review on the topic many scientists and economists have contributed to the development of the green economy. their work is aimed at forming the theoretical foundations of the green economy, developing its practical aspects, and influencing policy. german scientist karl wilhelm recknagel (karl william kapp) (1910-1976). he is considered one of the founders of ecological economics. he criticized the impact of the market economy on the environment and society and introduced the concept of "social costs". he conducted the study "the social costs of private enterprise" (1950). karl kapp deeply studied the externalities of the market economy, in particular its negative impact on the environment and society. by "social costs" he meant the damage that companies cause to the environment and society in the course of their activities. according to kapp, these costs are not reflected in market prices and therefore are not taken into account when making economic decisions. herman daly (born 1938) in the united states. development of the concept of a sustainable economy, a leading figure in ecological economics. he emphasizes that economic growth cannot be unlimited and calls for economic policies to be conducted taking into account ecological limits. he has conducted scientific studies such as "steady-state economics" (1977), "beyond growth: the economics of sustainable development" (1996). herman daly put forward the concept of a sustainable economy. he emphasizes that economic growth should be limited by environmental capabilities. according to daly, the economy should be part of an ecological system and its activities should not harm the environment. hazel henderson (hazel henderson) (1933-2022). an active advocate of green economy and sustainable development. she criticized economic indicators and proposed new measures that take into account the environment and social capital. research works "creating alternative futures" (1978), "building a win-win world" (1996). hazel henderson proposed new ways of measuring the economy. she argued that traditional indicators such as gross domestic product (gdp) do not reflect the true state of the economy. henderson proposed the use of indicators that take into account the environment and social capital. amartya sen (born 1933). nobel laureate, approaches economic development and well-being from the perspective of human rights and opportunities. he emphasizes the importance of environmental protection in the fight against poverty. he has been involved in research on "poverty and famines" (1981), "development as freedom" (1999). amartya sen emphasizes the importance of human rights and opportunities in economic development. he believes that environmental protection is important in the fight against poverty. because the poor often depend on natural resources. nicholas stern (born 1946) from great britain. he is known for his report on the economic consequences of climate change ("stern review", 2006). he has proven that combating climate change is economically viable and has had a major impact on global policy. he was involved in the scientific work "stern review on the economics of climate change" (2006). nicholas stern has studied in depth the economic consequences of climate change. his report showed that combating climate change is economically viable. american journal of business management, economics and banking volume 36 may2025 p a g e | 20 www.americanjournal.org analysis and results according to experts, the ratio of public and private investments involved in "green projects" should be 1:5. in china, it is advisable to use 10-15% of state budget funds and 85-90% of private investments in "green projects" to finance domestic "green projects" in order to minimize the risks of attracting "green projects" to the level of risks encountered in financing traditional projects. in world practice, various methods and mechanisms are widely used to stimulate the attraction of private investments in "green projects". sovereign funds can become one of the promising sources of financing for investments in "green projects". according to unep experts, although the potential of sovereign funds in financing and stimulating investments in "green projects" and achieving sustainable development goals is high, they are still poorly studied. in particular, the amount of "green financing" implemented by sovereign wealth funds in 2015-2017 amounted to $11 billion. figure 1. issued “green bonds” in billions of dollars the data presented in figure 1 shows that the value of “green” bonds issued worldwide has been increasing sharply in recent years. if in 2014 the value of “green” bonds issued worldwide was 36.7 billion. usd, then by 2021 a record value of “green” bonds was recorded, i.e. 582.4 billion. usd. in 2022, slightly less than in 2021, i.e. 487.1 billion. usd. usd. green bonds were issued. figure 2. number of green bond issues american journal of business management, economics and banking volume 36 may2025 p a g e | 21 www.americanjournal.org as shown in figure 2, a total of 5,166 green bond issues were issued globally in 2022. if we analyze bond issuance by economic sector, the largest number of green bond issues in 2022, namely 1,696, were issued to finance projects related to the construction of energy-efficient buildings. 1,092 green bond issues were issued to finance projects aimed at sustainable water and wastewater management and the creation of sustainable infrastructure for clean drinking water. analysis shows that the increase in the world population and economic growth has led to a steady increase in the environmental burden. due to the increase in the number of people and economic activity over the past century, the level of oxidation of the world's oceans has increased by almost 1.2 times (in 2000 compared to 1900), the rate of loss of tropical forests has increased by 6 times, and carbon dioxide emissions have increased by 1.5 times. such climate changes that are occurring as a result of the increase in the economic activity of the world's population can have serious consequences in the medium term. according to the united nations development program (undp), if the current state of the world economy and social sphere, which requires significant amounts of hydrocarbons for development and meeting needs, is not changed, humanity will lose 5 million people in 2050 compared to 2030. climate change and global natural system changes negatively affect all aspects of human life and worsen the living standards of countries' populations. developing human capital is essential in the transition to a "green economy". the formation of a “green” economy requires the training of personnel capable of creating and using innovative technologies that serve the ecologically correct orientation of the population, saving resources, and preserving nature. in particular, in 2010, the unep “green jobs” report concluded that each job created should serve to increase economic stability. it emphasized the need to introduce the study of sustainable development issues simultaneously with the improvement of skills in the field of current vocational training. according to the international financial organizations, by 2030, 24 million new jobs can be created in the “green economy”. these jobs will be created through the use of new technologies in the energy sector, the use of electric vehicles, and increasing the energy efficiency of buildings. conclusion at a time when the economies of countries around the world are experiencing a need for a green economy, it is necessary to introduce and use at a high level all types of instruments used in the implementation of green projects. the transition to a "green" economy requires large investments. it is impossible to carry out such expenses only at the expense of the state budget, and there are not enough funds for this. as a solution to this issue, it is necessary to actively involve the private sector in the use of low-carbon technologies. we believe that, based on the experience of advanced foreign countries, it is appropriate to establish a separate department for trading in "green" bonds at the "tashkent" republican stock exchange in order to support "green" financing in our country and actively involve private investors in this process. to do this, first of all, it is necessary to clarify the concept of "green" bonds, its types and principles in the relevant laws and by-laws, and then create the necessary ecosystem for trading in "green" bonds on the stock exchange. in order to issue green bonds on the international capital market and include them in the international registry, they must meet the requirements of the international capital markets association (icma) and the climate bond initiative (cbi). the european union, the united kingdom, china and many other countries have developed a taxonomy of green projects (specific directions and criteria for sustainable development and green projects), and the taxonomy complies with the requirements of icma and cbi. therefore, based on american journal of business management, economics and banking volume 36 may2025 p a g e | 22 www.americanjournal.org the experience of developed countries, it is advisable to develop a taxonomy of green projects in our country. references 1. unep. (2015), publication unep. united nations environment program. http://www.unep.org/climatechange/. 2. irena (2017), renewable capacity statistics 2017, international renewable energy agency (irena), www.irena.org/publications. 3. un. report for the un secretary-general “an action agenda for sustainable development”. 2014. p. 1-2. 4. united nations environment programme and intergovernmental panel on climate change. special report on renewable energy sources and climate change mitigation. p. 7. 5. http://www.unep.org/labour_environment/pdfs/greenjobs/unep-green-jobstowardssustainable-summary.pdf. 6. https://www.un.org/sustainabledevelopment/blog/2019/04/green-economy-could-create-24-millionnew-jobs/. 7. tdiu “yashil iqtisodiyot” darslik (2020). http://www.unep.org/climatechange/ http://www.irena.org/publications http://www.unep.org/labour_environment/pdfs/greenjobs/unep-green-jobs-towardssustainable-summary.pdf http://www.unep.org/labour_environment/pdfs/greenjobs/unep-green-jobs-towardssustainable-summary.pdf http://www.un.org/sustainabledevelopment/blog/2019/04/green-economy-could-create-24-million-new-jobs/ http://www.un.org/sustainabledevelopment/blog/2019/04/green-economy-could-create-24-million-new-jobs/ american journal of business management, economics and banking issn (e): 2832-8078 volume 24, | may 2024 p a g e | 143 www.americanjournal.org economic significance of financing relations in the agricultural sector ishniyazov bakhrom normamatovich ph.d., tashkent state university of economics associate professor of the "econometrics" department a b s t r a c t k e y w o r d s in this article, it is important to form financial and credit relations in the industry and provide the industry with preferential loans and funds, improve the financial situation, increase profitability, and provide loans and financial support from the state to enterprises operating at a loss. and this will have a positive effect on the increase of financial stability and solvency of enterprises in the future, and a sharp reduction of debtor and creditor debts. source of financing, financial system, credit system, biological processes, industrial characteristics, production cycle, fluctuations, costs, volume of income, authorized capital, elasticity of demand, physiological needs, depreciation payments. introduction the specific characteristics of the network play an important role in the financing system of the agricultural network of our country. despite the fact that the sources of financing used in the financing of agricultural production enterprises are the same, there are a number of features of the operating conditions of the sector that significantly affect the composition of the sources of financing of economic entities. crop production in agriculture is considered seasonal, because animals and plants are means of production, reflect the duration of the production cycle, and are related to the content and intensity of the biological processes occurring in it. for some activities and productions, the cycle lasts from six months to one year. this explains the characteristics of the industry: a long cycle of working capital, slow turnover, which can be 2-4 times slower than the level of industry, trade and processing. the length of the production cycle leads to an increase in the role of short-term lending to agricultural enterprises, since the standard of working capital cannot be ensured only at the expense of own resources, but is unreasonable: the excess amount of working capital generated in the off-season creates necessary conditions for inappropriate or inefficient use of capital and temporarily available funds. the seasonality of production also affects the income from the products produced and intended for sale. if in the first half of the year production costs increase, in the second half the gross harvest of agricultural crops will be realized, and the amount of american journal of business management, economics and banking volume 24 may 2024 p a g e | 144 www.americanjournal.org income from the sale of manufactured products will increase. there is no such situation in cattle breeding, however, in such a situation, fluctuations are also observed and felt. depending on the weather conditions, it also affects the uniformity of the income from the manufactured products, because it is very difficult to accurately estimate the level of production. therefore, in production planning, industrial enterprises rely on the indicators of recent periods, but due to meteorological changes, there is always a possibility of inconsistency between plans and reality. if we pay attention to the peculiarities of the formation of fixed capital, the main funds of production in agricultural enterprises include arable land for which depreciation payments are not calculated, as well as perennial trees, while they are, respectively, agricultural jaligi products do not participate in the formation of production costs and are not a source of financing. the main means of agricultural production the levy for the use of land is levied in the form of a land tax for agricultural land, which is included in the cost of manufactured products. land use also requires investments for land reclamation, permanent maintenance of soil fertility, control of water, wind erosion and other agrotechnical activities.in the foreign practice of lending, the land involved in the production process is the subject of collateral, which creates a real opportunity for farmers to get bank loans. today, land relations in our country have an impact on the formation of the main authorized capital of agricultural enterprises, because it is possible to add a share to the authorized capital as a contribution of the land share of a member of a cooperative or partnership. a land share is a hectare of land per member of an agricultural enterprise. a new definition describing a part of the agricultural land of an agricultural enterprise belonging to a person who has the right to receive it land share appeared in the process of land reform. unequal soil fertility in cultivated areas determines the presence of differentiated rent in the production of agricultural products, that is, equal in cultivated area, the final production and, as a result, the financial result of agricultural enterprises will be different due to differences in the level of soil fertility. the sources of working capital formation also include the farm's own means of circulation seeds and necessary tools for growing products. the important role of internal economic circulation determines the existence of a large number of tasks in the production of one type of product, different branches, sub-branches, interdependent and determining the specific characteristics of internal financial relations. it is necessary to insure agricultural crops in order to cover the possible losses due to weather conditions, it is necessary to cover the losses caused by natural disasters with the budget, that is, the production in agriculture development is unstable and requires strong financial support. there are specific characteristics of biological processes in the production of agricultural products that require additional costs breeding, veterinary, etc. implementation of production taking into account the biological characteristics of plants and animals requires strict adherence to technologies and, as a result, timely provision of necessary resources, including timely provision of financial support for changing conditions. does. agricultural products are important in human life, the demand for them is formed by the physiological needs of a person the change in the price and volume of the product also affects the level of demand for it. depending on the income of the population, there is an elasticity of demand for agricultural products, their growth leads to an increase in the demand for food. american journal of business management, economics and banking volume 24 may 2024 p a g e | 145 www.americanjournal.org therefore, the orientation of the social policy of the country to increase the level of income of the population requires the increase of agricultural products. therefore, in addition to the characteristic conditions of the activity of the industry, the changing economic situation in the country leads to the emergence of new features of the further development of agricultural production in the modern era, which, in turn, forms the financial demand in agricultural industries. is closely related to the activity of the objects. in order to find out more about the uniqueness of the sources of innovative financing of the agricultural sector of our country and its features, it is necessary to determine the financial relations of industrial enterprises by dividing them into the following groups of relations: within the enterprise, with other enterprises and organizations, and the financial and credit system. financial relations within agricultural sectors include relations between its various divisions and forms. it consists of employee relations regarding the payment of salaries, bonuses, allowances, financial assistance, various deductions, and internal relations, etc.the second group of financing and relationships includes relationships with suppliers and existing customers, various debtors and creditors. therefore, this group of relations is the largest and most important in the production of agricultural enterprises and their economic activity. the main suppliers of material and technical resources necessary for agricultural production are machine-building heat, fuel and lubricants enterprises, energy and construction material suppliers. therefore, the main agricultural enterprises enter into mutual relations with the chemical industry companies producing mineral fertilizers, veterinary medicines, plant protection products and service enterprises. in addition, the main agricultural enterprises include the products of the processing industry that is, flour mills, meat processing enterprises, oil and oil processing enterprises, grain enterprises, etc. in addition, agricultural products are sold to public catering establishments, food reserves, markets and shops. effectively using the above, it is appropriate to say that this group is distinguished by the fact that the entities entering into financial relations through the agricultural sector are from different regions and there are many of them. the third group integrates its relations with the country's financial and credit system, through budgets and extra-budgetary funds of various levels due to obligations to pay taxes on time. the agricultural sector is distinguished from other production entities by the system of preferential taxation, which consists in the exemption from payment of certain types of taxes. interactions between agricultural sectors and budgets of different levels, as well as subsidization and reimbursement of some types of production costs, implementation of budget loans, guarantees, targeted programs and their financing, etc. is distinguished by the presence of a share.the relations of agricultural industries with insurance companies are formed only from the point of view of social and medical insurance. unfortunately, it is inappropriate to say that insurance types such as insurance of agricultural crops, animals, and enterprise property are fully operational today.the specific nature of financial relations in agriculture has determined the different positions of economic entities in terms of adopting the laws of the market economy. agriculture is one of the enterprises facing the most problems of the transition period. thorough study of innovative methods, sources and financing mechanism of financial support of some agricultural enterprises in order to determine the sources of financing and directions for further formation and improvement of their activities based on the formation of a socially oriented market economy. american journal of business management, economics and banking volume 24 may 2024 p a g e | 146 www.americanjournal.org determines the necessity. as for the characteristics of the sources of external financing of the agricultural sector, it is necessary to solve the problems related to the temporary lack of funds in the period from the beginning of the production cycle to the income from the produced products. it is appropriate to emphasize the need for loans that help in making. agricultural industries determine the minimum volume of their working capital by calculating the minimum need. surplus needs are covered at the expense of credit resources. over the years, the amount of loans varies in proportion to the rate of growth of costs and can make up more than the annual percentage of all investments in current assets, therefore, credit is one of the main sources of working capital formation of agricultural enterprises. in the financing of agricultural production enterprises, when granting loans by the bank, their characteristics are taken into account, first of all, the amount of the requested loan is taken into account, taking into account the size of the farm's financial resources. depending on the planned gross profit, cash flow forecast, short-term loans aimed at financing working capital (purchase of fuel, fertilizers, plant protection products, etc.), the estimated loan period is also taken into account. based on the production of agricultural products and its specific characteristics, the credit policy of agricultural enterprises is supported by the state. the budget funds allocated for the support and regulation of production in agricultural enterprises are allocated as follows: first, by short-term crediting of seasonal expenses and keeping necessary reserves in production; secondly, it can be through crediting of long-term production. based on this, the appropriate features of the technological process determine the appropriate moments of short-term lending to agricultural producers to replenish working capital.the term and duration of the loan is eight months, and its beginning (december 1 july 1) corresponds to the beginning of production operations for planting and growing early spring crops. at the same time, when using working capital, repaying the current year's loans at a certain time, agreement between the bank and the borrower, and the decision to grant a loan for the agricultural part of the last year, the interest rate may change. lending in the form of an open credit line in lending, when the timely provision of credit funds is carried out in the economic and financial activities of enterprises taking into account their production needs, that is, the borrower uses the credit resources given or allocated to him over the years. "chooses" at the specified rate or limit and provides an opportunity to minimize the amount of accrued interest on the loan. the source of the timely repayment of the main part of the loan and the interest on it is the income from the sale of agricultural products formed in the autumn period on local and international markets, in this regard, the repayment of the loan is one-time at the end of the agricultural year is done. when determining the level of economic risk of commercial lending to agricultural enterprises, two factors are mainly taken into account: crop yield and product price. in order to repay the loan, it is necessary to control the targeted use of additional collateral resources, which is in the form of collateral for products sold.interbank crediting of agricultural sectors will have its own characteristics that will enable the effective operation of production enterprises. the implementation of the priority role of bank lending in the external sources of financing of the agricultural sector is evidenced by the best practices of developed countries, where the level of attracting credit capital is very high: that is, american journal of business management, economics and banking volume 24 may 2024 p a g e | 147 www.americanjournal.org the share of loan funds in agricultural capital in (without real estate) reaches about 50% in germany and england, more than 40% in france, more than 30% in italy and belgium. another important source of external financing is commercial credit technology in agriculture. timely delivery of material resources in the production of agricultural products increases production efficiency, because the production process is based on the biological characteristics of animals and plants. the lack of technologies in the production process leads to irreversible negative consequences. this can explain the position of the agricultural enterprise as a borrower in commercial credit. in short, in our country, financing processes and relations in the field of agriculture, as well as the innovative development of the agricultural sector, the financial status of the enterprises of this sector in the process of forming a socially oriented market economy, and the innovative method of support it is obvious that it is necessary to study the methods, directions and financing mechanism. references 1. a.vahobov, n.jumaev, u.burxonov. xalqaro moliya munosabatlari. toshkent: sharq, 2003. 400 b. 2. abdug‘aniev a.a. qishloq xo’jalik iqtisodiyoti. -t.: tdiu, 2004. -304 b. 3. а.вахобов, з.срожиддинова. государственный бюджет. –ташкент: иқтисод-молия, 2006.с.340. 4. e.i.ergashev. qishloq xo`jaligini barqaror rivojlantirish yo‘nalishlari. monografiya. -toshkent. 2010. – 156 b. 5. хамраева с.н. қишлоқ инфратузилмасини инновацион ривожлантириш. монография тошкент: 2017 – 73 бет. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 78 www.americanjournal.org human capital development is at the center of our global development strategy fayzieva dilafruz shukhratovna phd senior teacher, tashkent state university of economics -998 97 762 77 81 a b s t r a c t k e y w o r d s this article presents proposals and recommendations on other forms of capital to organize the rapid implementation of business initiatives and projects in our country, to establish a system of communication with the population, to develop the standard of living and human capital of the population, and to increase the quality and level of production of human capital. it analyzes the human capital risk gap between a company or organization's human capital requirements and the available human capital of its workforce. proposals for increasing the income of the population, pension provision, and creating a social protection system for the lowincome segment of the population are presented. human capital, employment, social protection, investment, economic growth, economic regions. introduction the term human capital refers to the experience of a worker and the economic value of a country. human capital includes assets such as education, training, intelligence, skills, health, and others such as loyalty and loyalty to employers. human capital is the skills and health in which people invest and accumulate over the course of their lives, enabling them to fulfill their potential as useful members of society. investments resulting from achieving quality nutrition, health care, providing quality education, creating jobs and vocational education in the field of human development, which are a necessary condition for eradicating one's own poverty and building a more socially cohesive society. the human capital deficit is dangerously on the rise amid rapid global changes in technology, demographics, instability and climate. conflicts and pandemics can have a devastating impact on human capital, taking lives, destroying livelihoods, degrading nutrition, and disrupting basic health and education services. these effects are likely to persist throughout many people's lives, reducing their productivity. yet investing in people is often neglected. in the meantime, there are many examples of the rapid transformation of human capital for example, in countries such as singapore, the republic of korea, and ireland and of the remarkable successes of some of the world's poorest countries. ensuring sustainable business growth and job creation – the bank group provides policy advice and financial assistance to companies and financial institutions to help companies, especially small and mediumamerican journal of business management, economics and banking volume 34 march 2025 p a g e | 79 www.americanjournal.org sized enterprises, survive the crisis and return to growth. development of human capital helps leaders create a policy platform that will prioritize transformative investments in health, education and social protection. the challenge is to move rapidly towards a world where all children are well-nourished, come to school ready to learn, can expect to receive real learning in school, and are able to enter the labor market as healthy, skilled and productive workers. failure to invest effectively in human capital around the world has high costs, especially for the poor. these costs will put future generations at a disadvantage. human capital is considered to increase efficiency and profitability. as an example, the more a company invests in its employees, the more likely it is to be efficient and successful. it can be said that we have a two-fold opportunity to make our republic one of the developed countries because we have natural resources and the presence of potential human resources. the concept of human capital recognizes that not all work is equal. but employers can improve the quality of this capital by investing in employees. this can be done through the knowledge, experience and skills of the employees. all this has great economic value for employers and the economy as a whole[1]. investing in the knowledge and skills of uzbekistan's youth will be carried out in three stages. first, the acquisition of human capital in early childhood is often determined by the decisions of others. parental resources and management, as well as the uzbek cultural environment and early learning experiences, help to influence basic language and math skills, attitudes toward learning, as well as general health and life expectancy (which themselves affect the ability to work). second, teenagers and young adults go through a phase where they gain knowledge and skills as students in a full-time high school, vocational education program, or university. finally, the integration of workers into their human capital once they enter the labor market usually occurs on an incomplete basis through inservice training, evening school, or participation in relatively short formal curriculum courses[2]. the human capital index (hci) quantifies the importance of health and education to the productivity of the next generation of workers. countries use it to determine how much of their income they are losing due to a lack of human capital, and how quickly they can turn those losses into gains if they act quickly. in addition to the index, and to support countries in taking effective action, reliable measurements and studies are carried out. reliable estimates of education and health outcomes at the national level help countries understand what interventions are really making a difference and where resources should be directed. it also raises awareness among decision makers about the value of investing in human capital, creating momentum for government action. the concept of human capital recognizes that not all work is equal. but employers can improve the quality of this capital by investing in employees. this can be done through the knowledge, experience and skills of the employees. all this has great economic value for employers and the economy as a whole. there is a strong relationship between human capital and economic growth, so it helps boost the economy. this is because people have different skills and knowledge. this relationship can be measured by how much is invested in people's education. also, in the investment made in education, mature strategies have a great role in glorifying the value of a person [3]. there are other forms of capital to increase the quality and level of production of human capital. this requires an investment in the education, training and benefits of the organization's employees.[4] human capital risk refers to the gap between the human capital requirements of a company or organization and the available human capital of its workforce. american journal of business management, economics and banking volume 34 march 2025 p a g e | 80 www.americanjournal.org this gap can lead the company to inefficiency, failure to achieve its goals, bad reputation, fraud, financial losses and ultimately closure. in order to reduce and eliminate the risk of human capital, the organization must train and support its workforce[5]. its value is in the leading position in the economic development of the population. acquired and useful skills of population or community members[6]. the human capital index is an integral indicator of the amount of human capital that a child born today can accumulate by the age of 18, taking into account the risks associated with poor health and education in the country in which he/she lives. acquiring such talents through the care of the recipient during his education, training, or apprenticeship is always worth the real cost, which capital is invested and, so to speak, exercised in his person. these talents are part of his wealth as well as the happiness of the society he belongs to[7]. in order to increase the level of employment of the population in the regions, the elements regulating the layers of the population in need of the composition of the economically active population are providing employment to the needy layer of the population, increasing the income of the population, pension provision, creating a social protection system for the low-income population layer [8]. an important innovation is that this index measures the contribution of health and education systems to the productivity of individuals and countries, based on deep microeconometric analysis. with values ranging from 0 to 1, the index takes on a value of 1 only if a child born today is able to achieve full health (defined as not being stunted and at least 60 years of age) and reach their full potential to receive formal education (defined as being educated in a first-class school by age 18 after 14 years of schooling). intensification of the processes of globalization in the 21st century, the axbort century, in turn, as a result of scientific researches, scientific developments and ideas within the programs based on it technologies, is aimed at creating workplaces provided with new techniques and technologies, attracting modern techniques and technologies in the sectors and industries necessary for the development of the country. introduction of innovative management system. the positive solution of this direction, in turn, creates opportunities for the development of the economy of regions with a lot of labor resources and a small land area. economic growth refers to an increase in aggregate supply, or in other words, an increase in real and potential gdp. the following factors are included in this group of economic growth: 1. quantity and quality of natural resources; 2. number and quality of labor resources; 3. the size of the main capital; 4. organization of technologies and production; 5. is the level of development of entrepreneurial skills in society. demand and distribution factors of economic growth decrease the degree of monopolization of the market; tax environment in the economy; efficiency of the credit-banking system; growth in consumption, investment and government spending; increase in export volume; opportunities for redistribution of production resources in the economy; established system of income distribution. a country's score reflects how far it is from the optimal indicator of complete education and good health. if a country's human capital index is 0.70, this means that the level of future income that a child born today can expect will be 70% of the level that he could achieve with a full education and full health. american journal of business management, economics and banking volume 34 march 2025 p a g e | 81 www.americanjournal.org the index is presented as an average of each country and includes a breakdown by gender in countries for which relevant data are available. the index can be directly linked to future income scenarios for countries and individuals. if a country's score is 0.50, then future gdp per worker could be twice as high if the country were to achieve the target of full education and good health. analysis of literature on the topic in the conditions of modernization of the economy of uzbekistan, scientists of our country are conducting a number of scientific researches in the fields of labor economy and demography. in particular, the scientific and methodological foundations of issues such as the demographic aspects of increasing human capital and employment of the population, regulating the labor market, creating decent working conditions, academicians r.a. ubaydullaeva and k.kh. abdurahmonov, professors: b.kh. umurzakov, n it is reflected in the scientific researches of k. zokirova, n. kh. rakhimova, a. kayumov, s. salaev, a. ata-mirzaev, z. ya. khudoyberdiev, g. k. abdurakhmonova and others[10]. adam smith laid the groundwork for the study of human capital in the wealth of nations (smith, 1776). although he does not use the term human capital, he defines the acquired and useful skills of an individual as the main source of a country's wealth and economic development[11]. originally developed by becker (1962) and rosen (1976), human capital theory states that individual workers possess a set of skills or abilities that can be improved or accumulated through training and education[12]. in the 1960s, economists gary becker and theodore schultz argued that education and training are investments that can increase productivity. as the world has accumulated more and more physical capital, access to school has declined. education has become an increasingly important component of the workforce. the term was also adopted by corporate finance and became part of intellectual capital and more broadly as human capital[13]. not all economists agree that human capital directly increases productivity. for example, in 1976, harvard economist richard freeman argued that human capital acts only as a signal of talent and ability; real productivity came later through education, motivation and capital equipment. he concluded that human capital should not be considered as a factor of production [14]. around the same time, marxist economists samuel bovels and herbert gintis argued against human capital theory, arguing that turning people (i.e., labor) into capital essentially displaced debates around class conflict and efforts to strengthen workers' rights.[15] vladimir mau "human capital. challenges for russia"(2013) the dynamism of the modern economy, in which new fields of activity and professions are constantly emerging, requires a constant change of skills, continuous education and adaptation to new challenges. a person who is not able to learn continuously is on the edge of development and cannot be considered successful in any way[16]. the american economist edward denison (with contributions from robert solow, john kendrick and others) developed a classification of factors of economic growth. of the 23 factors he chose, 4 describe the contribution of labor, 4 to capital, 1 to land, and 14 to science and technology development. according to denison, economic growth is determined not by the number of factors consumed, but by their quality and the growth of this quality. denison prioritizes the quality of its workforce. from analysis of us economic growth 1929-82. denison came to the conclusion that the most important component of human capital is education [17]. american journal of business management, economics and banking volume 34 march 2025 p a g e | 82 www.americanjournal.org research methodology the relationship between human capital and economic growth, as well as the role of mature strategies in the promotion of human capital in investment in education, the study of existing scientific research, comparison of human capital with global indicators, statistical data, and economic comparison and analysis methods were widely used. analysis and results in the republic of uzbekistan, based on the specific characteristics of the number and structure of the population of the regions, the geographical location of the regions and the availability of natural resources, that is, each region requires the use of forms and methods suitable for the local labor market. of course, currently created free economic zones and small industrial zones do not contribute enough to increase the economic potential of the regions. in this regard, self-government bodies of citizens demand the development of normative documents on the use of unused estates and plots of land of peasant farms through the formation of small industrial zones and service provision in the territory of the neighborhood. the process of human capital application can be imagined as a sphere of human capital market subjects' interactions. on the supply side, highly qualified specialists, engineers, and inventors appear on the field, on the demand side, innovation-oriented organizations, enterprises, research laboratories, technoparks, which are the main participants of the innovation process, appear. the subject of interaction in the human capital market is the unique abilities of people, creative thinking, and knowledge aimed at creating innovations. tashkent, uzbekistan – the world bank has published a new systematic country diagnosis that analyzes the main problems and opportunities of uzbekistan's development. it includes policy recommendations for removing barriers to private sector growth, reducing the role of the state in the economy, focusing on people and their human capital, and transitioning to a green economy. the report became the basis for choosing the priority areas of cooperation of the world bank group with the government of uzbekistan in 2022-2026. in april 2022, the world bank completed the second systematic country diagnosis for uzbekistan. this flagship report is produced every five years for a partner country to identify key challenges and opportunities to end poverty and promote shared prosperity. among the countries of central asia, the human capital of liberalized countries has reached the highest indicators. by combining human capital and research, according to the human capital indicator, central asian countries with a high degree of liberalization appear to improve their development results, with kyrgyzstan leading the region. conclusions and suggestions the issue of increasing the share of rural youth in the composition of youth aged 14-30 is put forward to enable young people to enter competitive human capital from childhood. president of the republic of uzbekistan sh. in mirziyoev's address to the oliy majlis, it was emphasized that the development of our country and the well-being of our people are first of all closely related to the results of reforms in the social sphere. one of the areas that serve to strengthen the competitive environment and create a competitive environment aimed at developing work activities is to strengthen relations with international financial institutions and leading international organizations in order to develop international cooperation in the american journal of business management, economics and banking volume 34 march 2025 p a g e | 83 www.americanjournal.org field of higher education, and in this regard, support innovative initiatives that are in the interests of the country's education system. it should be said that economic growth and development depend on both human capital and material resources, as well as factors affecting efficiency. investments in these sectors complement and reinforce each other human productivity depends on the availability of material assets such as infrastructure, equipment, and a stable, well-managed economy. at present, the role of human capital in the development of the state is important, because intellectual thinking and innovative environment under the influence of the human factor are important. innovation is one of the most important strategic resources of any country. successful solving of socioeconomic problems, introduction of new industrial and financial technologies, development of innovation-investment infrastructure, increase of intellectual potential, production of exportable products, substitution of imports, accumulation of foreign exchange reserves are to a certain extent related to innovative activities. human capital in a broad sense is an intensive productive factor of economy, society and family development, including the knowledge and skilled intellectual part of the workforce, managerial labor tools, the environment and the sum of labor activities. human capital can be briefly defined as intelligence, health, knowledge, quality and efficient work and quality of life. the formation of human capital is reflected in the following: firstly, the national economy in a modern civilized society cannot develop without highly educated and qualified workers, and secondly, one of the main features of the future is the introduction of digital technologies into human life. references 1. preschool education as a factor of human development. report of the center for economic research. -2017. www.cer.uz. 2. https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-projectfrequently-asked-questions 3. social science computing cooperative. "the american economic review, vol. 51, no. 1 (mar., 1961): investment in human capital," pages 1-2. 4. ubaidullaeva r.a. labor resources and efficiency and usage. t.: uzbekistan, 1979.; 5. umurzakov b.kh. social life and demographic pressures. people's word. december 19, 2018; 6. scopus database: impact of demographic processes on the labor market of uzbekistan.; khodzhaevich a. khamidovich u. kalandarovna z. etal. international journal of recent technology and engineering (2019). https://scholar.google.com.ua/citations?; 7. https://data.worldbank.org/indicator/hd.hci.ovrl?locations=uz 8. ata-mirzaev o. demographic situation in uzbekistan and its perspective. // «obshchestvennoe mnenie. prava cheloveka". humanitarian journal. 2014, no. 3. 63 p. 9. abdurakhmanov k.kh. labor economics: theory and practice. textbook. revised and supplemented 3rd edition. – t; academy of sciences of the republic of uzbekistan "fan" publishing state enterprise,.: 2019. – 544 p.; 10. e.r. eide, m.h. showalter, in encyclopedia of international education (third edition), 2010 11. adam smith "the wealth of nations" (smith, 1776) 12. https://xs.uz/uzkr/post/inson-kapitalini-rivozhlantirishdagi-uzilishlar 13. https://www.investopedia.com/terms/h/humancapital.as http://www.cer.uz/ https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions https://xs.uz/uzkr/post/inson-kapitalini-rivozhlantirishdagi-uzilishlar https://www.investopedia.com/terms/h/humancapital.as american journal of business management, economics and banking volume 34 march 2025 p a g e | 84 www.americanjournal.org 14.m. frese, a. rauch, in international encyclopedia of social and behavioral sciences, 2001 15. https://ru.wikipedia.org 16. vladimir mau "human capital. challenges for russia"(2013y) 17. https://ru.wikipedia.org 18.https://www.researchgate.net/figure/human-capital-index-of-post-soviet-countries-in-2020world-bank-2020_fig1_354402863 https://ru.wikipedia.org/ https://ru.wikipedia.org/ https://www.researchgate.net/figure/human-capital-index-of-post-soviet-countries-in-2020-world-bank-2020_fig1_354402863 https://www.researchgate.net/figure/human-capital-index-of-post-soviet-countries-in-2020-world-bank-2020_fig1_354402863 american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 43 www.americanjournal.org methodological approach to developing the mechanical engineering industry through green investments khursandov komiljon makhmatkulovich candidate of economic sciences, associate professor, phd tashkent state university of economics, a b s t r a c t k e y w o r d s this article analyzes methodological approaches to developing the industrial machinery sector through green investments. it explores systemic, functional, sustainable development, and innovative approaches to enhance the environmental efficiency of industrial enterprises. modern tools such as life cycle assessment (lca), sustainable return on investment (s-roi), and multi-criteria decision analysis (mcda) are applied in a combined framework. the article also highlights digital transformation processes supported by iot and big data technologies. empirical and theoretical analysis methods are integrated to develop strategies based on real-world data. an interdisciplinary approach ensures the integration of economic, environmental, and social criteria. emphasis is placed on forming a competitive and sustainable industrial machinery model through green investment. the proposed methodological model can serve as a practical basis for policy-making and investment projects. green investments, industrial machinery, methodological approach, lca, s-roi, mcda, digital transformation, sustainable development introduction in the world practice of developing the mechanical engineering industry, new innovative opportunities, green investments and advanced methodological approaches are developing from year to year. the development of these areas is taking the mechanical engineering industry to a new stage of development. currently, the practice of abandoning old systems, technologies and programs in the development of the mechanical engineering industry and using new scientifically based methodological approaches instead is developing at a global pace. because it is clearly demonstrated in practice that old systems and technologies have high costs and do not produce high results in terms of efficiency. therefore, in order to reduce costs and achieve high efficiency, the opportunities for introducing new methodological approaches, scientifically substantiating them and widely applying them in practice are increasing. in order to achieve high efficiency in the implementation of american journal of business management, economics and banking volume 38 july2025 p a g e | 44 www.americanjournal.org methodological approaches in practice, it is precisely through green technologies that high results are achieved. because financing green technologies through green investments serves to protect the environment, organize waste-free production, ensure resource efficiency, and increase economic efficiency. therefore, when implementing methodological approaches, their implementation is taken into account in a closely linked manner with green technologies. green technologies are safe technologies for the development of the industry and also serve to ensure environmental sustainability in countries. the development of methodological approaches mainly requires scientific justification. because if they are scientifically based, their effectiveness is clear and records high results. it is precisely the introduction of scientifically based methodological approaches in the development of the mechanical engineering industry that ensures new opportunities in the industry and the growth of efficiency indicators from year to year. literature review on the topic omar farooq and md. ataur rahman chowdhury have conducted a study that examines the role of big data in the development of green investments. they found that digital data and advanced analytics have a significant impact on investment decisions. the study also found that macroeconomic factors such as inflation negatively affect investment flows; however, countries’ gdp and foreign direct investment are relatively minor factors in this process. this study provides fundamental knowledge for more effective management of green investments and strengthening the financial decision-making process with technological approaches [1]. according to economists bernardo caldarola and dario mazzilli, there is a correlation between economic complexity and the ability to produce green technologies. the researchers argue that complex economic systems have a high potential to adopt green investments and develop competitive technologies during the transition to sustainability. their analysis considers economic indicators, innovative potential and technological development as a single unit, and this model helps to determine the future directions of green investment strategies. this study shows that as the level of economic complexity of countries increases, the demand for green technologies and the amount of investment can also increase significantly [2]. according to the views of well-known scientists f. knobloch and j.-f. mercure, they focused on the psychological and behavioral factors of the subjects participating in the investment process. according to their model, if under ideal conditions it is possible to increase investments up to 81%, in real conditions this indicator drops significantly and remains only around 20% due to restrictions on the individual behavior of decision-makers. this model shows that not only economic factors, but also human psychology and social relations play an important role in stimulating green investments. the results of the study prove that it is necessary to take into account not only financial indicators, but also human factors when developing investment strategies [3]. local scientist madina raimzhanova’s research emphasizes the important role of investments in the development of a green economy. according to the scientist, although green financing instruments (green loans, subsidies, state guarantees) are not yet fully formed in uzbekistan, there is a legal, institutional and economic basis for their introduction. she emphasizes the need to define clear roles and responsibilities between the state and private sectors, as well as create a stable investment environment. raimzhanova suggests referring to international experience in this process, especially the experience of the european union and south korea [4]. american journal of business management, economics and banking volume 38 july2025 p a g e | 45 www.americanjournal.org another economist, r. shodmonov and sh. mustafakulov, have thoroughly substantiated the possibility of supporting a green economy through the digitalization of industry. they argue that in uzbekistan, there is a need for the expanded implementation of industry 4.0 technologies to introduce green indicators (energy efficiency, waste reduction, co2 emissions) in industrial enterprises [5]. sukhrob allayarov’s research focuses on financing mechanisms, in particular green banks, green bonds, and credit lines from international financial institutions. he argues that by introducing these instruments in uzbekistan, capital flows can be attracted to sectors such as solar and wind energy, waste recycling, and environmental infrastructure. allayarov also argues that private investors can be attracted to environmental projects through the development of special financing channels, tax incentives, and loan guarantees [6]. the research conducted by the above economists shows that green investments are not only necessary for the country’s economy, but also relevant for the investment process around the world. research methodology to study the problem in the article, methods such as systematic analysis, scientific observation, analysis and synthesis, induction and deduction were widely used. analysis and discussion of results we will consider an analysis of methodological approaches that are widely used in world experience in the development of the mechanical engineering industry. first of all, we will analyze the definition of a methodological approach. a methodological approach is a set of scientifically based theories, principles, methods and methodological steps used to study, analyze and solve a specific problem. in other words, a methodological approach is a method of answering a number of questions with a scientific basis: “what is done?”, “how is it done?” and “why is it done this way?”. there are a number of types of methodological approaches used in world experience, the names of which are given in table 1 below. table 1 types of methodological approaches used in world experience [7] no. type of methodological approach implementation process 1 systematic approach objects are considered in interrelation, as a single integrated system. 2 functional approach the role and function of each component are clearly identified. 3 complex approach various sciences, methods, and approaches are integrated. 4 innovative approach new technologies and ideas form the basis of the approach. 5 sustainable development approach economic, environmental, and social criteria are harmonized. 6 empirical approach based on real-world data such as energy consumption, emissions, and waste. 7 theoretical approach models like lca and s-roi are mathematically represented and analyzed. 8 combined approach integrates empirical and theoretical methods, using sensor data within lca (life cycle assessment). 9 interdisciplinary approach integrates economics, ecology, technology, and social factors. 10 advanced integrated methodology combines lca (life cycle assessment), mcda (multi-criteria decision analysis), s-roi, and iot/big data. american journal of business management, economics and banking volume 38 july2025 p a g e | 46 www.americanjournal.org table 1 shows the types of methodological approaches that are widely used in world practice in the development of the mechanical engineering industry, and also describes the processes by which they are implemented in the development of the mechanical engineering industry. we will consider the following methodological types of analysis, as shown in table 1 above. here: one of the developed methodological integrated approaches is the lca (life cycle assessment) approach, which is mainly used to analyze the emissions and energy requirements of a product or process at the raw material, production, use and disposal stages. therefore, this type of methodological approach is widely used in the mechanical engineering industry. the goal is to improve production processes in mechanical engineering enterprises. the mcda (multidimensional analysis) approach evaluates options based on several criteria, such as (economic, environmental, technical, risk and social). the effectiveness of this approach in the development of the mechanical engineering industry is very high, and multidimensional analysis is used to determine in advance which criteria will increase profit indicators and which criteria will decrease their growth. this approach will enable us to identify problems in the mechanical engineering industry and find effective solutions to them. s‑roi (sustainable return on investment) is the name of this approach. the main goal is to convert the economic, environmental and social results of investments into monetary units. the application of this approach in the machine-building industry shows high results. because the effective use of this approach ensures the development of green investments in the machine-building industry and the improvement of the state's machine-building industry indicators. iot + big data monitoring approach is a modern approach that provides real-time collection of indicators in enterprises, namely gas emissions, electricity consumption and other types of indicators, through sensors. it serves to automatically combine data from enterprises with lca, mcda and s‑roi approaches. the importance of this approach in the development of the machine-building industry is very important, it facilitates the processing of all data. it ensures the storage of a very large database. therefore, it has been serving the development of the industry due to its fast and high-quality monitoring of data in mechanical engineering enterprises. if we analyze the systematic approach, since the mechanical engineering industry is a complex system, it is an approach that ensures that all components, namely raw materials, production, logistics, processing and other processes, work in an interconnected state to redirect activities in the industry. therefore, the effective use of a systematic approach in the development of the mechanical engineering industry ensures the effective functioning of all components in the industry, and as a result, the production process in the industry develops. it serves to create new opportunities in the industry. an integrated approach means the joint operation of several types of approaches in the mechanical engineering industry. an approach that combines several scientific methods is considered to assess the effectiveness of green investments in the mechanical engineering industry. this includes lca (life cycle analysis) – which measures the environmental impact of a product or service over its entire life cycle, mcda (multi-criteria decision analysis) – which compares investment options from an economic, environmental, and social perspective, and s-roi (sustainability-based return on investment) – which evaluates the benefits and socio-environmental impacts of investments. an integrated approach is achieved by analyzing several approaches. american journal of business management, economics and banking volume 38 july2025 p a g e | 47 www.americanjournal.org innovative and digital approach is understood as an approach that includes new ideas aimed at developing the mechanical engineering industry. the main emphasis is on the development of new technologies and ideas in the industry. sustainable development approach combines the following approaches in the mechanical engineering industry. in particular, it is an approach that arises from the combination of a number of approaches, such as economic efficiency (cost optimization, competitiveness), environmental safety (reduction of emissions) and social stability (job creation, health care). currently, in world practice, many methodological approaches are developing year by year in the development of the mechanical engineering industry. one of these is the following methodology. hybrid methods, the reason why this methodology is called hybrid is that it is a method that combines 3 methods at once. that is, the hybrid method mcda + lca + iot, is a combination of 3 methods, which is a modern methodology with very high efficiency. according to recent studies, methodological approaches combined with multi-criteria decision analysis (mcda) and life cycle assessment (lca) methods, as well as big data and iot integration, take into account sensor-based monitoring and real-time environmental indicators in the development of the machinery industry. as a result, it allows machinery enterprises to more reasonably assess the effectiveness of investments. in the world experience, the widespread implementation of many of the above modern methodologies aimed at developing the machinery industry has led to the achievement of a number of high-level performance indicators. in particular, global machinery production is expected to grow in 2025 the global machinery sector is expected to recover in 2025 after a 2.1% decline in 2024. according to the international interact analysis, machinery production is expected to end the year with a 3% growth rate by mid-2025. despite uncertainties such as trade tariffs, industry slowdown and ai arms race, the industry outlook remains positive and stable growth is expected until 2029 [8]. in china, despite a global decline in the machinery industry in 2024, china's manufacturing industry recorded a growth of 1.2%. china’s manufacturing economy has seen its growth forecast for 2025 revised upwards, with strong growth expected in 2026 and beyond. in europe, regions such as germany and the uk are seeing minimal growth in the machinery industry and are struggling to compete globally. deindustrialization is a major concern for germany, as german automakers have significantly impacted european manufacturing with plant closures and mass layoffs. in the us, the machinery industry is expected to show stability with growth of 2.7 percent in 2024. however, there are still some obstacles that could hinder future economic growth, and despite these, there is optimism for increased production in the us machinery industry [9]. as we can see, the development of the machinery industry is largely driven by china, europe, and the us, which are major players in the global market. the global industrial machinery market is growing year by year. according to statistics, the industrial machinery market is estimated to be worth $714.5 billion in 2024. the market is expected to grow to $743.1 billion in 2025. it is expected to grow to $1.61 trillion by 2034. in terms of operation, the global industrial machinery market is segmented into automated machinery, semi-automated machinery, manual machinery, and robotic machinery. according to global statistics, the automated machinery segment is expected to generate revenue of $311.6 billion in 2024 and is expected to grow at a cagr of 9.3% during the forecast period. as of 2024, north america dominated american journal of business management, economics and banking volume 38 july2025 p a g e | 48 www.americanjournal.org the global industrial machinery market, accounting for about 45.2% of the global market share and generating revenue of about $322.7 billion in 2024. therefore, many large manufacturers and innovators in the industrial machinery industry are currently established in this country, which is the most important factor contributing to continuous growth and competitive advantage. among the companies in the industrial machinery market, the companies listed in table 2 below are the main companies operating in the industrial machinery industry. table 2 the main participants of the industrial machinery market companies [10] № company headquarters location market capitalization (july 2025) 1 caterpillar inc. deerfield, illinois, usa $194.6 billion 2 deere & company moline, illinois, usa $135.4 billion 3 honeywell international charlotte, north carolina, usa $152 billion 4 asml holding veldhoven, netherlands $288.8 billion 5 illinois tool works (itw) glenview, illinois, usa $75 billion 6 ingersoll rand davidson, north carolina, usa $34.5 billion 7 atlas copco nacka (stockholm), sweden $70.1 billion 8 agco corporation duluth, georgia, usa $7.98 billion 9 alfa laval lund, sweden $18.1 billion 10 cnh industrial basildon, united kingdom $16.2 billion this table 2 mainly lists the names of the main companies in the global machinery industry. these companies supply industrial machinery for sectors such as agriculture, construction, manufacturing, mining and automation. in particular, agco is a manufacturer of agricultural machinery. its brands such as fendt, massey ferguson and valtra produce modern equipment. similar companies include cnh industrial and deere & company (or john deere), which manufacture construction and road equipment, including tractors and excavators. in the fluid handling and processing sector, alfa laval offers pumps, valves, and tank cleaning equipment, and offers automation systems, brewing equipment, centrifuges, and bioreactors. in semiconductors, asml is a leader in lithography and metrology, and has chip manufacturing capabilities. atlas copco provides assembly tools, fastening solutions, and material removal equipment for industrial needs. illinois tool works (itw) serves a range of industries with welding, food processing equipment, and specialty products. caterpillar, hitachi construction machinery, and esco manufacture heavy construction and mining equipment, such as dozers, loaders, hydraulic excavators, and rugged mining components. steelmaker gerdau makes parts for agricultural and construction equipment. honeywell international is a company that specializes in sensors and automation systems, and protection equipment brandt industries offers professional industrial equipment. these companies produce products for all aspects of industrial operations, from construction and agriculture to manufacturing and technology. conclusion and suggestions in conclusion, it is worth noting that the widespread implementation of modern methodological approaches in the development of the machine-building industry through green investments will serve to create new opportunities. american journal of business management, economics and banking volume 38 july2025 p a g e | 49 www.americanjournal.org there are many modern methodological approaches in world experience, and countries that effectively use them have recorded high performance indicators in the machine-building industry. therefore, the effective use of lca (life cycle assessment), mcda (multidimensional analysis), s‑roi (sustainable return on investment), iot + big data monitoring, integrated, innovative and digital, and sustainable development approaches, which are widely used in world practice, to develop the machinebuilding industry in our country through green investments and methodological approaches, will ensure the emergence of new innovative results in the machine-building industry. references 1. faruq a. t. m., chowdhury m. a. r. financial markets and esg: how big data is transforming sustainable investing in developing countries //arxiv preprint arxiv:2503.06696. – 2025. 2. caldarola, b., mazzilli, d., napolitano, l., patelli, a., & sbardella, a. (2024). economic complexity and the sustainability transition: a review of data, methods, and literature. journal of physics: complexity, 5(2), 022001. 3. knobloch f., mercure j. f. the behavioral aspect of green technology investments: a general positive model in the context of heterogeneous agents //environmental innovation and societal transitions. – 2016. – т. 21. – p. 39-55. 4. asrarovnа r. m. the role of investments in developing a green economy in our country //international journal of scientific trends. – 2024. – т. 3. – №. 12. – p. 271-275. 5. shodmonov r., mustafakulov s. challenges and opportunities in implementing green economy indicators in uzbekistan’s industrial sector under the fourth industrial revolution //green economy and development. – 2025. – т. 3. – №. 4. 6. s.allayarov. financing mechanisms in the green economy in uzbekistan. (2025). sciental journal of education humanities and social sciences, 3(5), 115-122. 7. developed by the author based on internet information. 8. https://interactanalysis.com/ used data. 9.https://www.industrialautomationindia.in/articles/machinery-sector-rebound-2025-globalmanufacturing-outlook used data. 10.https://www.gminsights.com/industry-analysis/industrial-machinery-market prepared by the author based on information. https://interactanalysis.com/ https://www.industrialautomationindia.in/articles/machinery-sector-rebound-2025-global-manufacturing-outlook https://www.industrialautomationindia.in/articles/machinery-sector-rebound-2025-global-manufacturing-outlook https://www.gminsights.com/industry-analysis/industrial-machinery-market american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 168 www.americanjournal.org the role of stock market development in shaping international financial centres narimonov sayfullakhon sunnatillo ugli tsue, senior lecturer of the department of international finance a b s t r a c t k e y w o r d s this article examines the evolution and strategic positioning of international financial centres (ifcs), with particular emphasis on the pivotal role of stock markets in enhancing financial system efficiency. it explores how stock exchanges contribute to market liquidity, enable effective capital mobilization, and act as a catalyst for financial innovation, all of which are essential factors in the global competitiveness of financial hubs. the study presents a detailed analysis of uzbekistan’s trajectory within the global financial centres index (gfci), highlighting its efforts to strengthen capital market institutions and align with international financial standards. stock market development, capital markets, financial infrastructure, global financial centres index (gfci), investment climate, market liquidity, financial competitiveness. introduction since the late 20th century, international financial centers (ifcs) have become an essential component and operational mechanism of the global financial system. in the context of intensifying globalization processes, the relevance, influence, and functional scope of ifcs have significantly expanded. their growing role reflects the structural transformation of global finance and the increasing interdependence of national economies. modern ifcs are characterized by their complex and multifaceted nature. in addition to serving as hubs for international capital markets, they provide a wide range of ancillary services related to cross-border monetary, financial, and credit operations. these include insurance, auditing, legal, and consulting services, which together support a holistic financial ecosystem. while some ifcs pursue a universal approach, integrating multiple financial services within one jurisdiction, others exhibit clear trends toward functional specialization based on comparative advantages or regulatory preferences. the republic of uzbekistan is uniquely positioned to capitalize on its privileged geopolitical status and growing authority within the eurasian region—factors that could play a pivotal role in facilitating the transition to a new digital economy. the reform agenda has laid a foundational framework for the establishment of a financial centre. this is a highly promising project that necessitates the development of a robust financial infrastructure, including an internationally recognized legal framework and judicial system that is conducive to foreign business operations and aligned with global best practices for rapidly growing financial hubs. american journal of business management, economics and banking volume 37 june2025 p a g e | 169 www.americanjournal.org to achieve these goals, it is essential to ensure the involvement of international organizations, attract foreign enterprises, and further enhance investment attractiveness, export potential, and the economic competitiveness of regions and sectors. the responsibility for addressing these strategic objectives has been entrusted to the agency for strategic reforms under the president of the republic of uzbekistan [1]. the formation of uzbekistan’s primary regional financial centre must be pursued not only by creating favorable conditions for foreign investors, but also by establishing a supportive legislative framework and overall business environment for domestic entrepreneurs and investors, with particular attention to the needs of small and medium-sized enterprises (smes). literature review according to d. kindleberger, the emergence of international financial centres requires the presence of both economic and institutional preconditions. these include an open and liberal financial system, a competitive banking sector, a stable legal and political environment, and well-developed communication and information systems [2]. r. levine emphasizes that countries with advanced financial systems—particularly those hosting financial centres—tend to exhibit higher rates of economic growth. he argues that improvements in financial intermediation mechanisms enhance the efficiency of investment allocation, thereby supporting long-term economic development [3]. a.n. azrilyan defines international financial centres as hubs of the international loan capital market [4]. in his classification, primary centres include new york, tokyo, london, paris, frankfurt, zurich, and luxembourg, while key centres in developing countries include hong kong, singapore, bahrain, and others. these centres are characterized by a high concentration of banks and other financial-credit institutions, along with robust communication systems based on modern computer technologies. a.v. novikov and i.y. novikova identify three main approaches to defining financial centres [5]. from a functional standpoint, financial centres provide a wide range of financial and consulting services. from an institutional perspective, they comprise a system of financial institutions engaged in various financial operations. from a geopolitical view, financial centres are global cities with advanced infrastructure capable of serving financial market participants efficiently and facilitating the attraction and redistribution of capital. z. bodie, one of the prominent representatives of modern financial theory, provides theoretical perspectives on financial infrastructure, market intermediation, and global capital flows. his views are of great significance in understanding the key functions and roles of international financial centres in the global economy [6]. v.v. klimachev, in his academic research, also offers a definition of international financial centres. he views them as centres of global rent generation through the legitimization of international financial and credit operations, carried out via banks, funds, and economic-financial mechanisms such as exchange rates and interest rates [7]. research methodology to examine the research problem, the study employs methods of system analysis, scientific observation, analytical and synthetic reasoning, as well as inductive and deductive approaches. american journal of business management, economics and banking volume 37 june2025 p a g e | 170 www.americanjournal.org results and analysis the strategic importance of establishing an ifc is increasingly recognized by both developed and emerging economies. these centers act as platforms for attracting and reallocating global financial flows, contributing to national economic development through increased capital inflows, employment growth, and fiscal revenues, including taxes on high-income professionals. additionally, ifcs enhance the international status of a country’s currency and contribute positively to the balance of payments. at the core of ifcs are banks and financial institutions that are deeply embedded in global economic networks. over time, ifcs have evolved into powerful information-analytical and organizational hubs, offering significant credit potential. supporting institutions, such as international legal firms, auditing companies, and management consultancies, play a crucial role in servicing financial transactions. moreover, the demand for expertise in comparative economic and legal analysis has grown, reinforcing the interdisciplinary nature of ifcs. the rise of analytical centers tanks capable of conducting complex research, developing indices and financial center rankings, and offering strategic foresight has further enhanced the intellectual infrastructure of leading ifcs. these centers are actively involved in analyzing trends in the global economy and offering insights into the development trajectories of various national economies. in recent years, a critical function of ifcs has been their participation in reforming the global financial architecture, often in collaboration with international financial institutions and g7 countries. this includes developing a coherent set of “rules of the game” for financial markets and establishing a robust institutional and legal framework that facilitates greater transparency, liberalization, and secure access to global financial services. countries lacking mature domestic financial markets and competitive financial centers are likely to experience persistent reliance on foreign capital and exposure to capital flight risks. hence, to achieve sustainable competitiveness in the international financial arena and maintain macroeconomic sovereignty, national strategies must prioritize the development of ifcs — whether through comprehensive financial intermediation or through targeted specialization in selected financial niches. in 2025 the gfci assesses the stability and competitiveness of 133 international financial centers operating worldwide. the formation of the ranking is based on the following key indicators: financial market activity – evaluates the operations of financial institutions, market liquidity, the scope of innovative financial products, and the breadth of financial services. business environment – includes the transparency of the tax and legal system, level of regulatory frameworks, corruption perceptions, and the overall ease of doing business. human capital – assesses the availability and quality of skilled professionals, education levels, labor market flexibility, and workforce competence. infrastructure – encompasses transportation systems, ict development, financial infrastructure, and quality of life. reputation – measures the global image of the financial center, its reliability, specialization, and attractiveness in the eyes of international investors [8]. the gfci ranking is compiled using data and assessments from over 30,000 financial sector professionals across 133 countries, including input from 5,000 international corporations. over 11,000 interviews and evaluations conducted with finance experts, analysts, and investors contribute to the index's construction. american journal of business management, economics and banking volume 37 june2025 p a g e | 171 www.americanjournal.org ifcs play a key role in attracting international capital through their stock markets, offering foreign investors access to local corporate securities. this not only fuels economic development but also enhances the center’s strategic positioning within the global financial system. the free and transparent movement of capital is essential to maintaining an ifc’s global competitiveness. market-based pricing of financial assets derived through stock market operations serves as a critical informational foundation for ifcs. transparent and efficient price discovery supports financial decision-making and strengthens systemic stability. accurate pricing signals improve resource allocation and allow financial institutions to better assess and manage risk. stock markets within ifcs serve as incubators for modern financial instruments such as etfs, derivatives, green bonds, and reits. these products allow investors to diversify their portfolios and manage risk more effectively, contributing to market stability and financial system resilience. the performance and attractiveness of ifcs and their stock markets are closely linked to the quality of the regulatory and legal environment. compliance with international standards, legal predictability, and regulatory transparency are key to enhancing investor confidence. stock markets are fundamental institutional and functional components of ifcs. they serve as platforms for trading financial instruments such as equities, bonds, and derivatives, thereby facilitating the efficient allocation of international capital. cities such as london, new york, tokyo, and frankfurt have become dominant players in global finance largely due to the depth and liquidity of their stock exchanges (table 1). table 1 top global financial centres for stock market development rank in gfci city stock exchange(s) key strengths specialization 1 new york nyse, nasdaq largest by market cap and trading volume, high-tech innovation, deep liquidity tech, spacs, global listings 2 london london stock exchange (lse) high foreign listings, development of derivatives market finance, green bonds 3 hong kong hkex dual listings hub for chinese firms, strong link to mainland markets cross-border ipos, tech 4 singapore singapore exchange (sgx) reit leadership, fintech hub, strong regional influence esg finance, real estate, derivatives 8 shanghai sse, star market government-backed growth, fast tech ipos, huge domestic base technology, strategic sectors 21 zurich six swiss exchange strong banking and pharma sector listings, innovation in digital securities financials, healthcare, tokenized assets 22 tokyo tokyo stock exchange (tse) high governance, diverse investor base, advanced regulation conglomerates, manufacturing 23 toronto toronto stock exchange (tsx) dominant in mining and energy sectors, strong mid-cap activity natural resources, etfs, blockchain stocks new york, london, and hong kong continue to occupy the top tiers of the global stock market hierarchy. their leadership is defined by the scale of market capitalization, the depth and breadth of financial innovation, and the large, diversified base of institutional and retail investors. these financial centres set global benchmarks for liquidity, regulatory sophistication, and listing attractiveness. american journal of business management, economics and banking volume 37 june2025 p a g e | 172 www.americanjournal.org meanwhile, singapore and shanghai are emerging as dynamic financial hubs within the asian region, gaining prominence particularly in areas such as financial technology (fintech) and technologyfocused initial public offerings (ipos). both cities are strategically positioning themselves to attract innovative enterprises and regional capital flows, supported by modern infrastructure and proactive regulatory frameworks. despite relatively lower rankings in the global financial centres index (gfci), zurich, tokyo, and toronto remain highly influential within their areas of specialization. zurich maintains its status as a stronghold of financial and pharmaceutical sector listings, backed by regulatory stability and innovation in digital assets. tokyo benefits from high corporate governance standards and a diverse industrial base, while toronto continues to lead in the listing of natural resource and mid-cap companies, with growing influence in exchange-traded funds (etfs) and blockchain-related instruments. together, these centres underscore the diverse trajectories and competitive advantages shaping the evolution of the global capital markets ecosystem. in the case of the uzbekistan, the creation of a nationally significant ifc is not only an economic imperative but also a strategic objective aimed at enhancing the resilience, autonomy, and global standing of the domestic financial system. the prestigious uk-based international analytical center z/yen group has released the latest results of the global financial centres index (gfci). this index is aimed at evaluating the competitiveness of major international financial centers and comprehensively reflects the state of development of the global financial infrastructure. a total of 119 cities have been included in this year’s gfci ranking. in addition, 14 more cities have been granted the status of associate international financial centre. this inclusion signifies growing international recognition of the republic of uzbekistan within the global financial landscape [8]. tashkent was officially included as an associate international financial centre following the release of the 32nd edition of the global financial centres index (gfci 32), compiled by the z/yen group. in this edition, tashkent was evaluated 15 times, receiving an overall rating score of 562, which positioned it ahead of four fully recognized international financial centres within the index. however, according to the methodological criteria established by the gfci, a financial centre must be evaluated at least 150 times through peer assessments by global financial professionals in order to attain full status as an international financial centre (ifc). therefore, while tashkent’s initial performance is noteworthy and indicative of emerging potential, it currently remains in the associate ifc category due to the limited number of observations recorded. in the latest edition of the global financial centres index (gfci 37), tashkent (uzbekistan) was observed 18 times, receiving a rating score of 511. although this represents a decrease in the overall rating compared to the previous edition (gfci 32, where the score was 562), it still demonstrates the continued presence and recognition of tashkent within the international financial community. with only 18 assessments, tashkent remains in the category of an associate international financial centre, which is designated for emerging or developing centres that have not yet met the threshold for full inclusion. despite the modest decline in score and the limited number of evaluations, tashkent’s presence in successive gfci editions indicates growing regional relevance and international interest. this trajectory suggests that with sustained reforms, enhanced global engagement, and further development american journal of business management, economics and banking volume 37 june2025 p a g e | 173 www.americanjournal.org of financial infrastructure, uzbekistan has the potential to elevate tashkent to full ifc status in the coming years. conclusion international financial centers (ifcs) are geographical hubs where financial services, capital flows, investment markets, and related financial operations are highly concentrated. these centers serve as key nodes within the global financial infrastructure. ifcs typically host major commercial and investment banks, insurance companies, private equity funds, stock exchanges, auditing firms, and fintech institutions. in 2025, the global financial centres index (gfci) assessed the stability and competitiveness of 133 international financial centres based on five key indicators: financial market activity, business environment, human capital, infrastructure, and reputation. these criteria collectively evaluate the depth and efficiency of financial services, regulatory transparency, workforce quality, technological and physical infrastructure, as well as the global perception and attractiveness of each financial centre. tashkent’s inclusion in the gfci is a significant milestone that reflects the increasing global acknowledgment of uzbekistan's financial sector. this achievement is expected to encourage international investors and multinational corporations to consider uzbekistan as a promising jurisdiction for investment. the country’s ongoing reforms, financial liberalization, modernization of the banking system, and alignment with international standards have played a crucial role in reaching this point. moreover, z/yen group actively collaborates with major global portfolio investors, sovereign wealth funds, and international financial institutions. the organization monitors the development dynamics of financial centers and provides analytical reports that serve as strategic guides for many global investors. in conclusion, tashkent's appearance in the gfci is not only evidence of uzbekistan's growing presence in the international financial arena but also a critical step toward becoming a regional financial hub. this development will contribute significantly to the country’s further integration into the global economy. references 1. decree of the president of the republic of uzbekistan “on measures to establish the strategic development agency of the republic of uzbekistan”. 19.07.2021. 2. d. kindleberger, charles p. manias, panics, and crashes: a history of financial crises. new york: basic books, 1978. 3. r. levine (1997). financial development and economic growth: views and agenda. journal of economic literature, 35(2), 688–726. 4. большой экономический словарь / под ред. а.н. азрилияна. — 7-е изд., доп. — м.: институт новой экономики, 2007. — 1427 с. — с. 1395. 5. новиков а.в., новикова и.я. финансовые центры: рейтинги и российский потенциал // экономика и управление. — 2010. — № 8. — с. 139–142. 6. z. bodie, a. kane & a. marcus (2014). investments (10th ed.). mcgraw-hill education. 7. климачев в.в. международные финансовые центры в глобальной финансовой системе. автореф. дис. … канд. экон. наук. — м., 2011. — 24 с. 8. https://www.zyen.com – official website of z/yen group. https://www.zyen.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 81 www.americanjournal.org destination hospitality service delivery capability and marketing performance of tourist sites: evidence from south-south nigeria * joseph sunday etuk department of hospitality and tourism management university of port harcourt joseph.etuk@uniport.edu.ng a b s t r a c t k e y w o r d s the south-south geo-political zone of nigeria has been identified as one of the regions characterized by low tourism patronage despites her huge natural and cultural attraction assets/opportunities and perceived hospitable disposition of her people. therefore, this study was carried out to empirically ascertain destination hospitality service delivery capability and marketing performance of tourist sites akwaibom state, south-south nigeria in terms of tourists’ satisfaction and revisit intention. to carry out the study, a survey method was adopted whereby primary data were obtained from 308 respondents through the questionnaire method. descriptive and univariate analysis was done using simple percentages, mean score, standard deviation while the pearson product moment correlation technique was deployed for hypotheses testing. the analyzed data revealed that destination hospitality service delivery was strongly and positively correlated with tourists’ satisfaction, but the correlation with revisit intention to the tourist sites was insignificant. the study concluded that although tourists were not impressed by the hospitality services delivery by hospitality organizations operating around the tourist sites in akwaibom, they, however, expressed willingness to return to the sites in the future. the study, therefore recommended the provision of adequate and high-quality hotel and restaurant facilities by entrepreneurs for visitors’ fun and relaxation and business sustainability. destination hospitality service delivery capability, destination marketing performance introduction hospitality industry represents an important component of modern tourism industry. much of what a tourist or visitor enjoys at the destination are services provided by the hospitality industry in the areas of accommodation, foods and beverages, entertainments, etc (page & connell, 2006). thus it has been argued that the tourism can simply be divided into two main segments: the travel and american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 82 www.americanjournal.org hospitality sectors. while the travel sector is concerned with movement/transportation of tourists from one destination to another, the hospitality sector welcomes and takes care of travelers, providing their guests with needsatisfying products/services such as accommodation, food beverage, entertainment, etc at a profit (bello & bello, 2017). good hospitality services at the destination have been recognized as a veritable differentiation strategy. page and connell (2006) posit that the quality of hospitality service and the attitude of service personnel and host communities can influence destination image which in turn support visitors’ attitudinal and behavioral intentions. hospitality services provided in a safe, ambient and courteous environment have become competitive weapons for customer acquisition and retention. studies show that visitors/tourists patronize destinations characterized by the welcoming attitudes of host communities and service personnel expressed through friendliness, cordiality, respect, goodwill and empathy (afiesimama, 2018). it, therefore, implies that any destination lacking in those qualities cannot provide a home-away -from home -experience to guests and support destination marketing performance. destination marketing performance denotes the actual performance of a tourist destination or attraction sites with regard to the numbers of tourists/visitors, their spending, satisfaction, repeat visit, revisit intention and referrals (ekeke & ndu, 2021). these metrics are crucial to the destination’s sustainability in the long run which draws substantially from the hospitality service offerings. etuk and ugwuonah (2021) identified two domains of destination hospitality. the first domain refers to hospitality services provided by the operators of hospitality organizations at the destinations which include hotels, restaurants/fast food organizations, entertainment centres and fitness centers. the second domain is concerned with the host community hospitality which represents the attitude of the natives toward visitors in particular and hospitality business in general, which if unfavourable, becomes a disincentive to travel and antithetical the growth of hospitality business as expressed through its capability or deficiency. the capability logic posits that variation in the performance and competitiveness of firms is a function of the quality of their capabilities (morgan, 2012; barney, 2007). therefore, it is reasonable to think that heterogeneity in a destination’s performance suggests variation in competitiveness within the various sectors of the tourism industry. in this regard, destination hospitality delivery capability might also provide an insight into destination marketing performance. nevertheless, this conjecture has been thoroughly empirically ascertained in the nigerian tourist sites’ context. consequently, destination hospitality has continued to stimulate empirical interest. while attention has been focused on hotel and food beverage industrial contexts, little research has been undertaken in the context of hospitality in the coastal recreational centres and its effects on destination marketing performance in terms of tourists’ satisfaction and revisit intention, thus creating a knowledge gap in the literature. research shows that destination hospitality plays a major role in destination performance in other geographical contexts. it therefore, becomes pertinent to wonder if the low tourism patronage in the south-south region of nigeria might also be explained by the quality of destination hospitality service delivery capability as manifested by the operations of the hospitality businesses and attitude of the host communities. such a study can add robustness and deepen insight into coastal tourism american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 83 www.americanjournal.org patronage in nigeria, with theoretical and managerial implications. it is against this backdrop that this study is undertaken to examine the influence of destination hospitality service delivery capability on marketing performance of tourist sites in south-south nigeria. 2. literature review hospitality service delivery capability buhalis (2000) identifies accommodation and catering facilities, tourism retailing and other tourist services as elements of tourism amenities. the ability to provide high-quality hospitality services in accommodation, food/beverages and entertainment is considered a measure of destination capability. okoli (2001) defines hospitality as a cordial, warm and friendly reception and entertainment of guests with liberality and goodwill. this suggests that the availability of the required hospitality infrastructure, facilities and trained service personnel to receive and enhance the memorable stay of tourists at the destination. the quality of hospitality services and other manifestations of warmth and friendships explain the extent of development for a destination. according to (okoli, 2001), a destination is said to be developed if it possesses quality hospitality/accommodation facilities that offer quality food, drinks, accommodation, and other ancillary services such as car hire, laundry and dry cleaning among others. these facilities are necessary for tourist activity to take place; thus, an essential element in the tourism process (bagil, 2014). kotler et al. (2010) report that hospitality service delivery is an indispensable aspect of tourist destination marketing as it provides a comfortable place for visitors to stay as well as what to eat and drink. local people’s hospitality and attitude toward tourists and contact personnel behaviour has been recognized as a significant social factor, forming part of the macro-environment of a destination which may influence tourists’ satisfaction with their trip. it is, therefore, vital to the success of the destination (dwyer & kim, 2003). local people’s attitude toward tourists is determined by how they perceive the tourism industry. most residents of a certain destination may positively perceive tourism due to its potential for job creation, income generation and enhanced community infrastructure, thus, leading to a friendly attitude toward tourists. alternatively, if most residents of a destination negatively perceive tourism due to the socio-cultural and environmental costs, local people’s attitude toward tourists will not be favourable (andriotis & vaughan, 2003). (mzengi, 2016) asserts that hospitality service delivery capability in the tourism context is the integrative organizational efforts in the deployment of relational resources, skill and knowledge, technology to deliver a memorable hospitality experience to guests more than competitors (bramara & zeilon, 2013). this view recognizes that hospitality service delivery is a cross-functional activity involving many units of the organizations, market knowledge, technology acquisition and application and contact personnel. what this implies is that tourism service delivery capability is predicated on three pillars: experiential hospitality products, the use of appropriate technology to support service delivery and having service personnel with the right relational skill and knowledge to interact with customers. a tourist organization’s and destination ability to provide an effective hospitality service in experiential product delivery is a crucial marketing capability with a competitive advantage as an invaluable organizational outcome (denielson, 2015). an important element of a hospitality service delivery capability is customer service, which is the provision of service to customers before, during american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 84 www.americanjournal.org and after a purchase (mzemgi, 2016). it also means serving the customer excellently, and involves all contacts with the guests at the gate, front desk, restaurants, poolside, house-keeping, bar and other touch-points. the contact could be face-to-face or indirect contact, such as dealing with a complaint letter. mzemgi explained that customer service is a series of activities designed to enhance the level of customer satisfaction – the feeling that a product or service has met the customer expectation. customer service can be expressed in personal and interpersonal skills such as communication skills, listening skills, language, gestures and posture, telephone techniques. egombhi (2013) showed that hospitality service delivery capabilities in service reliability, helpfulness, courtesy, service speed and empathy were considered important in guest retention, as it had a positive effect on customer satisfaction and word of mouth valence. estellani (2000) found that the speed of problem resolution is having a significant impact on delight and repurchase intention of guests. this, implies that having loyal customers not only reduces defection but also improves firms’ image and performance in the market place (artuğer et al, 2013). kotler et al. (2010) advocated that all employees must embrace service delivery through effective marketing in the hospitality and travel industries; and should be left to the marketing or sales department. the scholars maintained that marketing must be part of the philosophy of the organization and that the marketing function should be carried out by all line employees, especially those who interact with the customers. they posit that when employees and customers interact, a careless mistake by an employee or an unanticipated request by a guest can result in customer satisfaction. destination marketing performance destination marketing performance denotes the actual performance of a tourist destination or attraction sites with regard to the numbers of tourists/visitors, their spending, satisfaction, repeat visit, revisit intention and referrals (ekeke & ndu, 2021). these metrics are crucial to the destination’s sustainability in the long run which draws substantially from the hospitality service offerings. implicit in the above definition is the fact that destination marketing performance can be measured objectively (e.g tourist arrivals and tourist expenditure) and subjectively (e.g tourist satisfaction, repeat visit, revisit intention and referrals). in this study the subjective measures were considered since our focus was the visitors’ behavioural outcomes (tourist satisfaction and revisit intention) tourist satisfaction: chen, huang and petrik (2016) view tourist satisfaction as the extent of the tourist’s fulfillment of pleasure which occurred from the trip experience about tourist a product or service feature at the destination that matched the tourist’s desires, expectations and wants in association with the trip. viewed from that standpoint, satisfaction is created by the comparison of the customer’s expectation before and after consumption. in the tourism context, satisfaction is primarily considered a function of pre-travel expectations and post-travel experiences. the tourist is satisfied when experiences go beyond the expectations. however, if the tourist feels displeasure, dissatisfaction will be the expected outcome (chen & chen, 2010). furthermore, chenini and touati (2018) state that tourist satisfaction is an overall evaluation of destination performance based on all prior experiences of the tourist with it. thus, a tourist who receives what he or she expected in terms “of pleasurably memorable touristic experience” is most likely to be satisfied. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 85 www.americanjournal.org revisit intention: ramukumba (2018) conceptualized customer repurchase intention as a “deeplyheld commitment to re-buy or re-patronize a preferred product/service consistently in the future’. this perspective tends to confer the idea that repurchase intention is an attitudinal loyalty. in the same vein, singh, (2018) define attitudinal loyalty as the intention of a consumer to continue his/her relationship with the organization in the future regardless of whether competitors lower their offering prices. repurchase intention is hypothesized as the willingness to recommend friends and the intention to continue to patronize the organization. when applied in the context of tourism, revisit intention refers to the willingness or the likelihood of a tourist revisiting the same destination, the same tourist site, the same hotel or the same restaurant in the future (smith & pusko, 2010). therefore, it has been argued that attitudinal loyalty represents a higher-order or long-term commitment of a customer to an organization or destination which results in a long, fruitful relationship between the organization and the customers over time, based on customer satisfaction (al-msallam, 2015). the importance of tourist revisit intention is well documented in tourism research. fridgen (2009) reports that international tourism agencies and national tourist organizations use tourist revisit intention in tourism forecast, which is crucial in predicting or determining tourist flow and spending, especially in measuring destination competitiveness. this clearly shows that tourist revisit intention is very significant in building tourism patronage, tourist flow and expenditure empirical review and hypotheses development hospitality service delivery capability and marketing performance dodds and holmes (2019) investigated the factors that satisfy beach tourists and drive them to return to the same destination. the study drew on 1,451 complete surveys conducted at rural and urban beaches across ontario, canada. using hierarchical multivariate regression, a model for predicting overall beachgoer satisfaction, the finding indicated a positive effect of beach facilities such as good quality restaurant services on tourists’ satisfaction and revisit intention. research conducted by afiesimama (2018) examined hospitality service quality and competitiveness performance in the nigerian hotel sector. the result revealed low satisfaction of guests with services of some 3-star hotel operators in abuja, especially with house-keeping, ambience and attitude of service personnel. consequently, hotels with better service quality standard were reported to have recorded higher customer satisfaction and guests’ patronage. nzedike and eferebo (2017) investigated service delivery and business performance in the food and beverage sector setting. findings from the analysis of data collected from 180 restaurant managers indicated that providing hospitality services through service quality, service speed; a variety of menu, trained service contact personnel and supporting technologies were important drivers in ensuring customer satisfaction, sales revenue and profit. the findings, therefore reinforce the fact that effective hospitality service delivery is crucial to fast-food marketing performance. research conducted by mismack (2017) on hospitality service delivery and guest satisfaction, the purpose of which was to explore how the service offerings of hotels affected dining experience. the finding indicated that room service, the taste of food, ambient condition, food assortments and staff attitude positively influenced their satisfaction levels, patronage and loyalty. the study further revealed that location and prices were not significant considerations in patronage. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 86 www.americanjournal.org adeoye and babatunde (2015) carried out a study on hotel service delivery, and guest revisits intention in the hotel sector in lagos, nigeria. drawing from sample of357 guests of 3star hotels, the study revealed that contact personnel attitude, courtesy, service availability and house -keeping practices correlated positively with guest satisfaction, intention to revisit in the future as well as positive word –of-month. kariiki (2014) studied the link between service personnel behaviour and hotel performance in the gracia gardens hotel setting within nairobi, kenya. the result of the finding of the study revealed that the way service personnel communicated to customers, courteous when welcoming guest and the time taken before serving the customer were primary determinants of hotel improvement in hotel sales. arman (2014) explored the relationship between digital service capability and performance of travel agencies. the study revealed that the deployment of the internet in designing services and their use either as navigation for travelers, or as a tool for creating exciting products for leisure and tourism (geo-caching) was found to correlate positively with tourist satisfaction, increase in patronage and revenue. akanimoh (2010). conducted a study on customer retention in the fast-food industry. the research investigated the effect of dining attributes, customers’ satisfaction on customers’ retention in the fast-food industry. results obtained from the analysis established a significant impact of service quality on the customers’ retention. an important study conducted by hassan (2013) on customer service and performance established a positive effect of customer retention through customer service delivery capability on profitability performance of the hospitality industry. cornell hospitality research (2012) report showed that guest satisfaction was influenced heavily by service factors such as employee attitude, pacing and order of services provided. it found that the greater the client satisfaction, the higher the revenues for a given hospitality business, and that service plays a far greater role than price and location in the guest-purchase decision. in the same vein, a study conducted by kotler et al. (2010) in luxury hotels and large elaborate casinos found that the care, courtesy, warmth, friendship and other manifestations of the hospitality of contact personnel played a large role in guests revisits intention. as the review shows, most of the studies on hospitality service delivery and marketing performance have concentrated on the firm level. although empirical evidence of these phenomena appears to be lacking at the destination level, it is, however, unclear whether the same result might also hold at the destination level, thus, justifying the need to test the following underlying propositions in the nigerian destination context empirically. h1: hotel accommodation service delivery around the tourist sites is correlated with tourist satisfaction. h2: quick-service restaurant service delivery at tourist sites is correlated with tourist satisfaction. h3: accommodation service delivery around the tourist sites is correlated with tourist revisit intention. h4: quick-service restaurant delivery around the tourist sites is correlated with tourist revisit intention. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 87 www.americanjournal.org 3. methodology research design and participants the descriptive survey design was adopted for the study because it helped the researcher to find answers to the research questions of the study and to test the hypotheses. the population of this study included domestic and international visitors available at ibeno beach, nwaniba beach, ibaka beach and utaewa beaches during the christmas (2019)and new year (january 1st jan, 2020) holiday season in akwa-ibom state. diesamm (2012) has noted that in the context of the tourism and hospitality industry, the population of research involving customers is always large, unpredictable, mobile and transient. it is often not fixed; for example, the likelihood of a researcher meeting the same beach visitor or air passenger again at the same place in the future is slim. sampling/sample size determination the purposive sampling method was adopted to select the sample based on the researcher’s judgment and on-the-spot accessibility, availability and willingness of the beach visitors to participate in the study during the researcher’s visits to the beaches. the sample size used in this study was determined by the application of freund & williams (1992) formula. thus, three hundred and twenty-three (323) beach visitors constituted the sample size of the study. our sample size is consistent with the extant suggestion of roscue (1975 cited in aliman et al., 2016) that a sample of more than 30 and less than 500 is sufficient for most research in the social sciences of which tourism is a subset. quota sampling was also adopted in the selection of the sample subjects because of variation in the level of beach development and the destination’s drawing power. this sampling method is evident in the number of visitors drawn from each of the four beaches surveyed in the study. as udall & eneyo (2015) rightly stated, “there is no best sampling method; the nature of the study should dictate the method to be used”. the implication is that both probability and nonprobability sampling methods are acceptable in tourism/hospitality research. research instrument, procedure and measures primary data were obtained from the respondents through the questionnaire, while secondary data were generated from relevant academic journals and textbooks in tourism marketing. the questionnaire was the primary data collection instrument for this study. a questionnaire is a set of specific questions that are constructed and used by the researcher in obtaining information from respondents in a survey research (makinde 2015). the researcher and ten (10) research assistants administered copies of questionnaires on tourists/visitors visiting the four beaches for fun during the 2019 christmas and 2020 new year holiday season in akwa ibom state. visitors/tourists were briefed on the purpose of the study and the questionnaires retrieved after completion. the dependent and independent variables were measured onthe5-point likert scale, and the response scales for each statement in the survey questionnaire are 5-strongly agree, 4 –agree fairly strongly, 3agree, 2-disagree, 1-strongly disagree. the questionnaire items of the variables were modified from previous studies based on their relevance and appropriateness to the present study. four (4) items on destination awareness strategies were modified from (blain, et al., 2005). while tourist destination choice was treated as a one dimensional construct involving 3 items were adapted from (gold & whard, 2011) american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 88 www.americanjournal.org validity, reliability and analytical techniques face validity for the research instrument used was ascertained through expert opinions and contributions. also, it was assessed by tourism experts such as tourist managers, tour operators and marketing scholars based on their experience in the industry and academia respectively. reliability was determined using (i) cronbach alpha co-efficient with a value of 0.712. the descriptive data were analyzed using frequency distributions, percentages, mean scores and other descriptive statistical measures, all in tables with the aid of the spss & microsoft excel. pearson product moment correlation analysis was used for the hypotheses. this analytical tool is often used to examine the strength of the relationship between a dependent variable and a set of (more than two) independent variables (onodugo, ugwuonah & ebinne,2010). 4. analysis and results demographic profile of respondents table 1 demographic profile of respondents s/no demographic variables number percentage 1 category of visitors foreign 37 12 domestic 271 88 total 308 100 2 type of visitors companies staff 36 12 government officials 10 3 independent visitors 262 85 total 308 100 3 length of stay 1 day 203 66 2 – 5 days 105 34 5 days and above total 308 100 4 age of respondents 18 – 30 101 33 31 – 40 83 27 41 – 50 70 23 51 and above 54 17 total 308 100 5 marital status of respondents single 169 56 married 101 33 divorced 20 6 separate 18 5 total 308 100 6 gender of respondents male 172 56 female 136 44 american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 89 www.americanjournal.org total 308 100 7 educational background of respondents fslc 31 10 wasc/gce 62 20 ond bsc/hnd mba/msc phd others 48 103 6 10 15 33 2 3 total 308 100 8 state of origin of visitors akwa-ibom 227 74 cross river state 51 17 rivers south east delta foreign 18 7 6 2 total 308 100 9 nationality of respondents nigerians 294 96 ecowas 0thers 10 4 3 1 total 308 100 10 purpose of visit appreciation of nature / leisure 198 64 educational excursion 21 7 group meeting 89 29 total 308 100 11 frequency of visit first-time visitor 139 45 repeat visitor 169 55 total 308 100 12 travel party alone 62 20 family/partner 91 30 friends/relatives organized groups 108 47 35 15 total 308 100 13 monthly income of visitors n100,000 55 18 n101,000 to n200,0001 63 53 n200,000 90 29 total 308 100 section 1 of table 1 above shows the information on the category of visitors. the table revealed that (37) respondents (12%) were foreign while (271) respondents (88%) were domestic. thus, implying that domestic respondents were of the majority. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 90 www.americanjournal.org section 2 of table 1 above shows the information on the type of visitors. the table revealed that (36) respondents (12%) were companies staff, (10) respondents (3%) were government officials, while (262) respondents (85%) were independent visitors. thus, showing that independent visitors were of the majority. section 3 of table 1 above shows the information on the length of stay. the table revealed that (203) respondents (66%) stay for 1 day while (105) respondents (34%) stay for 2 – 5 days. this result points out that majority of the respondents stayed for 1 day. section 4 of table 1 above shows the information on age brackets of the respondents. 101 respondents (33%), were within 18-30 years, 83 respondents (27%) were within 31–40 years, 70 respondents (23%) were within 41–50 years while 54 respondents (17%) were greater than 51 years. this information shows that majority of the respondents were within the ages of 18 – 30 years. section 5 of table 1 shows the marital status of respondents. 169 respondents (56%) were single, 101 respondents (33%) were married, 20 respondents (6%) were divorced, while 18 respondents (5%) are separated. this information implies that majority of the respondents were single. section 6 of table 1 shows the gender of respondents. 172 respondents (56%) were male, while 136 respondents (44%) were female. this information implies that majority of the respondents were male. section 7 of table 1 shows the educational background of respondents. fslc (31) (10%), wasc/gce (62) (20%), ond (48) (15%), b.sc/hnd (103) (33%), m.sc/mba (54) (17%), ph.d (6) (2%), others (10) (3%). from the information it shows that respondents with b.sc/hnd are of the majority. section 8 of table 1 shows the state of origin of visitors. 227 respondents (74%) were from akwaibom, 51 respondents (17%) were from cross river state, 8 respondents (6%) were from rivers, 7 respondents (2%) were from south east, while 5 respondents (1%) were from delta. from this information, it shows that respondents from akwa-ibom were the majority. section 9 of table 2 shows the nationality of respondents. 294 respondents (96%) were nigerians, 10 respondents (3%) were from ecowas countries, while 4 respondents (1%) were others. from the above information, it shows that respondents from nigeria are of majority. section 10 of table 1 shows the purpose of the visit. 198 respondents (64%) came for appreciation of nature/ leisure, 21 respondents (7%) came for educational excursion, while 89 respondents (29%) came for group meeting, thus, showing that respondents who came for appreciation of nature/leisure are of majority. section 11 of table 1 shows the frequency of visit. 139 respondents (45%) were first-time visitors, while 169 respondents (55%) were repeat-visitors. from this information, it shows that majority of the respondents were repeat visitors. section 12 of table 1 shows the travel party. 62 respondents (20%) travelled alone, 91 respondents (30%) travelled with family/partner, 108 respondents (35%) travelled with friends/ relatives, while 47 respondents (15%) travelled with organized groups. from this information, it shows that majority of the respondents traveled with friends/relatives. section 13 of table 1 shows the monthly income of visitors. 55 respondents (18%) earn less than n100,000, 163 respondents (53%) earn n101,000 – n200,000, while 90 respondents (29%) earn above n200,000. thus, majority of respondents earn n101,000 to n200,000 monthly american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 91 www.americanjournal.org table 2 : summary of descriptive statistics on items of hospitality service delivery capability n mean std. deviation good hotel accommodation around the tourist sites. 308 1.9221 1.02752 provision of quality restaurant services at the sites 308 1.9805 1.19156 reception and welcoming of visitors by host communities 308 2.0747 1.21511 courtesy and friendliness of service personnel 308 1.9805 1.17781 fast and attentive service 308 1.9805 1.09170 valid n (listwise) 308 information on table 2 above indicates the univariate statistical result of hospitality service delivery capability. all the mean scores on the items were less than 3.9 (criterion mean), indicating that respondents did not generally agree on all the items. the result suggests that the tourist sites lacked the capability to provide quality hospitality services for the tourists who visit the beaches in akwa ibom state. table 3 descriptive statistics on items of tourist satisfaction descriptive statistics n mean std. deviation wise decision to visit the beach 308 4.0909 .98102 fulfillment of expectation 308 2.0487 1.16164 high satisfaction and memorable experience 308 1.8149 1.06537 pleasurable sightseeing opportunities 308 4.1312 1.24939 overall satisfaction 308 2.0390 1.19381 valid n (listwise) 308 information on table 3 above indicates that the mean scores on two of the items were greater than 3.9 leaving three items with mean scores that are less than 3.9 (grand mean); indicating that the respondents did not generally agree on all the items. the implication is that respondents generally agreed on the fact that they made a wise decision to visit the beaches, which provided pleasurable sightseeing opportunities. on the other hand, the expectations were unfulfilled, while the overall satisfaction level was very low. table 4 descriptive statistics on items of revisit intention items n mean std. deviation likelihood of return based on experience at the beach 308 4.0974 1.25571 likelihood of return based on the beautiful coastline of the beach 308 4.1013 1.37037 likelihood of revisit with family and friends 308 4.0429 1.35867 valid n (listwise) 308 information on table 4 above indicates that all the mean scores on the items were greater than 3.9 (grand mean), indicating that the respondents agreed on all the items. the standard deviations were american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 92 www.americanjournal.org relatively low. this implies that the respondents generally agreed on prior experience and beauty of the beaches as likely reasons for a return visit. they also indicated willingness to repeat the visit with family and friends. bivariate analysis pearson product moment correlation (ppmc) was conducted to determine the strength of the relationship between accessibility and tourists’ satisfaction and revisit intention. table 5: summary of ppmc results predictor variables criterion variable rho value pvalue level of sig. decision hotel service capability tourist satisfaction 0.818 .000 p=.001 < 0.05 supported restaurant service capability tourist satisfaction 0.771 .002 p=.000 < 0.05 supported hotel service capability revisit intention 0.898 .060 p=.060 > 0.05 not supported restaurant service capability revisit intention 0.714 .051 p=.051 > 0.05 not supported as table 5 shows that hotel service delivery capacity correlated positively and significantly with tourist satisfaction. in the same vein, restaurant service capability correlated positively and significantly with tourist satisfaction. however, the relationship between hotel service delivery and revisit intention to the tourist sites was insignificant in the context of our study. similarly, the correlation between restaurant service delivery at the sites and tourists revisit intention to the sites was also insignificant. 5. discussion the study findings also showed that hospitality (hotel and restaurant) service delivery capability correlated positively and significantly with tourist satisfaction in the context tourist attraction sites in akwa-ibom state. this finding is consistent with previous empirical studies which established a strong, positive and significant correlation between hospitality service delivery and customers satisfaction in other tourism markets such as: dudds and holmes (2019); afiesimama, (2018); mismack, (2017); mzengi (2017; adeoye and babatunde (2015), kariiki (2014), arman, (2014nawaz, et al. (2013). what the results suggest in the context of our study is that the low overall tourist satisfaction at the sites is also traceable to deficiency in hospitality service delivery by hospitality businesses operating around the tourist sites. as gleaned from the mean scores (1.9221 – 2.0747) for the four items used in measuring hospitality service delivery capability, the results suggest that there is apparent lack of good quality hospitality services such as resorts, hotels and good quality restaurant around the beaches studied. the finding also implies that the available hospitality amenities located in the tourist sites’ environment were of poor quality and therefore, not able to render high quality services to tourists/visitors. the result also implies that a lot of work is required by the tourism promotion agencies and other stakeholders to provide good quality hospitality services at the tourist sites however, the positive but insignificant relationship between hospitality (hotel and restaurant) service delivery at the sites and tourist revisit intention can be explained by the fact that although hospitality services available at the sites are important, they are not strong enough to stop revisit american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 93 www.americanjournal.org intention. this is because some tourists and same day visitors may still revisit the beaches without taken up accommodation and feedings in hospitality facilities around the sites of perceived insecurity. again, some visitors may make their hospitality service arrangements in uyo and eket that are close to the tourist sites. furthermore, our empirical result suggests that effective and efficient hospitality service delivery at the destination will drive tourist satisfaction for repeat visit and revisit intention. this is because hospitality service is a part of the overall tourism product which is better described as a ‘composite product’ and therefore contributes its quota to the overall touristic experience of visitors. 6. conclusion, implications and recommendations the result of our empirical analysis has shown that destination hospitality service delivery capability is an important factor in predicting tourist satisfaction and intention to revisit the tourist sites in the future. accordingly, the study concludes that although the tourists/visitors were not impressed with the destination hospitality service delivery by hospitality firms operating around the tourist sites in akwaibom state, the overall low tourist satisfaction did not affect revisit intention. therefore, the study concluded that effective and efficient hotel and restaurant service delivery correlated positively with tourist satisfaction, but the relationship with revisit intention to the tourist sites was insignificant in own context. perhaps, not all beach visitors want to stay overnight in hotels or eat in restaurants located around the beaches for security risks. accordingly, our research holds certain implications for tourism service providers, akwa-ibom state ministry of culture and tourism and tourism promotion agencies as it provides a better understanding of tourists’ behavioural intention towards the development of tourists attraction sites’ marketing strategies towards the achievement of destination marketing objectives in tourist attractions development. furthermore, the empirical evidence of this study offers actionable information to all tourism destination stakeholders based on the fact that the tourism product is an amalgam of several individual products which contribute to the total memorable tourism experience. consequently, the study recommends the provision of adequate high-quality hospitality facilities such as: resorts, hotels, restaurants, event centres in a safe and secured environment to draw more domestic and international visitors through public, private partnership arrangement for economic diversification through tourism development in akwa-ibom state. references 5. adeoye, w. & babatunde c. (2015) hotel service delivery and guest revisit intention in lagos, journal of travel and leisure studies, 15(3) 133-145 6. afiesimama, i. w. (2018), hospitality service quality and competitiveness performance in the nigerian hotels in rivers state. journal of applied economics and management 28(4) 80-92 7. akanimoh, h.(2010). tourism services quality and customer satisfaction in nigeria. journalbusiness development,16 (2), 41-49 8. alimam, n.k., hashim, s. m., wahid, s.d. m. & harudin, s. (2016). tourists’ satisfaction with a destination: an investigation on visitors to langkawi island. international journal of marketing studies, 14 (3), 135-144 9. al-msallam, s. (2015). the relationship between customer satisfaction and customer loyalty in the banking sector in syria. journal of marketing and consumer research, 17(27), 34. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 94 www.americanjournal.org 10. anderson, e. w, & fornell, c. (2004). a customer satisfaction research prospectus. service quality: new directions in theory and practice, 14(1), 239-266. 11. andriotis, k., & vaughan, r. d. (2003). urban residents’ attitudes toward tourism development: the case of crete. journal of travel research. 42(4), 172-185. 12. arman, l. (2014).digital service capability and travel agency performance. journal of travel research, 16 (3) 189-101 13. artuğer, s.; çetinsöz, b.c. & kiliç, i. (2013). the effect of destination image on destination loyalty: an application in alanya. european journal of business and management. 5(13), 124136. 14. bagil, w. (2014). the role of transportation in tourism development in nigeria. journal of tourism and leisure. 11(2). 212-221. 15. barney, j. b. (2007). gaining and sustaining competitive advantage, 3rded, canada: pearson education ltd. 16. bello y. o. & bello, m. b. (2017). tourism planning and development in an emerging economy, ondo: excellent grace publishers. 17. blain, c., levy, s. e., &ritche, j. r. (2005). destination branding: insights and practices from destination management organizations. journal of travel research, 43(4), 328-338. 18. bramara, t.v & zeilon, w.c. (2013). service quality and customer behavior in a dinning setting: journal of service development 10(2)150-154 19. chen, c. c., huang, w. j. & petrick, j. f. (2016). holiday recovery experiences, tourism satisfaction and life satisfaction–is there a relationship? tourism management, 53, 140-147. 20. chen, c., & chen, f. (2010). experience quality, perceived value, satisfaction and behavioral intentions for heritage tourists. tourism management, 31, 29-35. 21. chenini, a. & touuti, m. (2018). building destination using tourist satisfaction and destination image: a holistic conceptual framework. journal of tourism heritage and services marketing. 22. cornell hospitality research (2012). employee attitude and guest satisfaction. 23. denielson, y.i. 2015). tourism development and hospitality industry growth in nigeria. academic journal of business research. 44-51 24. dieseman, j.e. (2012). research methods in social service: problems and prospects. lagos: lighthouse published ltd. 25. dodds, r., & holmes, m. r. (2019). beach tourists; what factors satisfy them and drive them to return. ocean & coastal management, 168, 158-166 26. dwyer, l. & kim, c. (2003). destination competitiveness: determinants and indicators. current issues in tourism. 6(5), 369-414. 27. egombhi l. (2013). hotel management: an introduction. port harcourt: sterling printing ltd. 28. ekeke, j. n. (2021). tourism and hospitality marketing. nimo, njikoka: paper world st. patrick ltd. 29. estellani, e. p. (2000). customer service and hotel performance in nigeria, business review, 8(2),10 (3). 30. etuk .j.s. & ugwoanah .g.e. (2021). attraction and products development capability and marketing performance of tourist beaches in akwa. europian journal of research development and sustainability, 2(5). american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 95 www.americanjournal.org 31. fridgen, j. d. (2009). dimensions of tourism, 4th ed, michigan: educational institute of american hotels and motels association 32. gold, q. & whard, m. h. (2011). effect of destination branding on destination choice. travel review. 32 (5). 165-177. 33. kariiki (2014), influence of customer care services on organization performance. the case of gracia gardens hotel, nairobi kenya. 34. kotler, p., bowen, j. t. & makens, j. c. (2010). marketing for hospitality and tourism, 4th ed. new york: pearson books. 35. makinde, p. (2015). research method in educational psychology, ibadan: oyewale press ltd. 36. mismack, s. (2017). hospitality service delivery system and hotel guests’ satisfaction, journal of hospitality research. 21. 123-129 37. morgan, n. (2012). marketing and business performance. journal of the academic marketing science, 40: 102-119. 38. mzengi, n. e. (2016). impact of customer service toward business performance in the hospitality industry: a case study of gold crest hotel, mwanzacity, published msc dissertation, university of tanzania. 39. nze – dike, l. & eferebo, u. (2017) service delivery and business performance in the food and beverage sector in abuja, nigeria. hospitality review, 12 ( 3), 168-178 40. okoli, c. (2001). tourism development and management in nigeria. enugu: jee communications. 41. onodugo, v. a, ugwonah, g. e. & ebinne, e. s. (2010). social science research: principles, methods and applications enugu: e. denmark publishers. 42. page, s. j. & connell, j. (2006). tourism: a modern synthesis 2nd ed, london: thomson learning. 43. ramukumba, t. (2018). tourists revisit intentions based on purpose of visit and preference of the destination. a case study of tsitsikamma national park. african journal of hospitality, tourism and leisure, 7 (1), 231-236 44. singh, r. (2018). destination brand experience and its relationship with tourists satisfaction and intention to recommend: a conceptual model. african journal of hospitality, tourism and leisure, 7 (1), 224-321 45. smith, m. & puzko, l. (2010). health and wellness tourism, oxford: butherworth-heinemann. 46. udall, b. & eneyo, w.c. (2015). relationship management: scale development for tourism and hospitality management. tourism review. 14(3) 51-55 american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 112 www.americanjournal.org digital transformation and international competition: analysis of the impact of digital technologies on competitiveness and development of international business umida a. sharipova ph.d. in economics, associate professor, head of the department of international finance and investments, university of world economy and diplomacy, associate professor at the nordic international university, tashkent, uzbekistan email: umida-@mail.ru a b s t r a c t k e y w o r d s the rapid development of digital technologies has transformed the global business landscape, creating new opportunities for international competition and growth. this article analyzes how digital transformation influences the competitiveness of businesses in the global marketplace. the study explores the role of key digital technologies such as artificial intelligence (ai), big data, cloud computing, and blockchain in enhancing business processes, improving efficiency, and fostering innovation. by examining case studies of companies that have successfully integrated digital technologies, this article also highlights the challenges faced by businesses in adopting digital solutions and the broader implications for international competition. the findings suggest that companies that embrace digital transformation are better positioned to compete internationally, while those that fail to adapt risk falling behind in the global economy. digital transformation, international competition, digital technologies, artificial intelligence, blockchain, cloud computing, business development, global competitiveness. introduction digital transformation refers to the integration of digital technologies into all areas of a business, fundamentally changing how companies operate and deliver value to customers. it has become a critical factor in determining the competitiveness of firms in today’s global marketplace. businesses across various industries are leveraging digital technologies such as artificial intelligence (ai), big data analytics, cloud computing, and blockchain to enhance operational efficiency, foster innovation, and improve customer engagement [1]. these technologies are reshaping traditional business models and enabling firms to compete on a global scale. american journal of business management, economics and banking volume 25 june 2024 p a g e | 113 www.americanjournal.org the impact of digital transformation on international business development is profound. companies that successfully implement digital solutions can scale rapidly, optimize supply chains, and enter new markets with ease. moreover, digitalization has lowered the barriers to entry for businesses in developing countries, allowing them to compete with established players in developed economies. however, the digital divide remains a significant challenge, with many businesses, particularly in emerging markets, struggling to adopt digital technologies due to infrastructure limitations and a lack of digital skills [2]. this article aims to analyze the role of digital transformation in enhancing the competitiveness of businesses in the global economy. it examines the impact of key digital technologies on business processes, highlights the challenges of digital adoption, and discusses the implications for international competition and business development. main part 1. the role of key digital technologies in enhancing competitiveness digital technologies are at the heart of modern business strategies, driving innovation and enabling companies to maintain a competitive edge. some of the most transformative technologies include: 1.1 artificial intelligence (ai) ai has revolutionized industries by automating processes, enabling predictive analytics, and enhancing decision-making capabilities. in international business, ai-powered systems help firms optimize logistics, personalize marketing efforts, and streamline customer service [3]. for instance, ai algorithms enable companies to analyze vast amounts of data to identify market trends, customer preferences, and competitive threats. businesses such as amazon and alibaba have leveraged ai to improve supply chain efficiency and customer satisfaction, giving them a significant competitive advantage in the global market [4]. 1.2 big data analytics big data analytics allows businesses to harness large volumes of structured and unstructured data to generate actionable insights. by analyzing customer behavior, market trends, and operational performance, companies can make informed decisions that drive growth and improve competitiveness. for example, netflix uses big data to recommend personalized content to users, enhancing customer engagement and retention [5]. in international competition, the ability to analyze data from diverse markets and adjust strategies accordingly is crucial for success. 1.3 cloud computing cloud computing has transformed the way businesses manage their it infrastructure. by providing scalable and cost-effective computing resources, cloud technology allows companies to reduce operational costs, improve collaboration, and accelerate innovation [6]. global firms such as google, microsoft, and ibm have adopted cloud solutions to streamline operations and scale their services internationally. for smaller companies, cloud computing levels the playing field by offering access to advanced technologies without the need for significant upfront investment [7]. american journal of business management, economics and banking volume 25 june 2024 p a g e | 114 www.americanjournal.org 1.4 blockchain technology blockchain technology offers enhanced transparency, security, and traceability in business transactions. in industries such as finance, supply chain management, and healthcare, blockchain is being used to ensure the integrity of data and prevent fraud. for international businesses, blockchain can facilitate cross-border payments, reduce transaction costs, and increase trust among global partners [8]. companies like ibm and walmart have integrated blockchain into their supply chains to improve product traceability and enhance transparency [9]. 2. the impact of digital transformation on international business development digital transformation has significantly influenced the development of international businesses. companies that embrace digital technologies can expand their global reach, improve efficiency, and create new revenue streams. some key impacts include: 2.1 global market expansion digital platforms enable businesses to reach global audiences more easily than ever before. ecommerce platforms, social media, and digital marketing tools allow companies to enter new markets without the need for a physical presence. for example, companies like shopify and etsy have enabled small businesses to sell products to customers worldwide, significantly expanding their international footprint [10]. digital payment systems such as paypal and stripe have also facilitated cross-border transactions, making it easier for companies to operate globally [11]. 2.2 supply chain optimization digital technologies such as ai, blockchain, and the internet of things (iot) have transformed supply chain management. by providing real-time data on inventory levels, transportation routes, and supplier performance, these technologies help businesses optimize their supply chains and reduce operational costs. for instance, global companies like maersk have used blockchain to improve the transparency and efficiency of their supply chains, reducing delays and ensuring the timely delivery of goods [12]. 2.3 innovation and product development digital transformation fosters innovation by providing businesses with the tools to develop new products and services. companies can use big data analytics to identify emerging market trends and customer needs, while ai and cloud computing enable rapid prototyping and product testing. firms that adopt digital technologies can bring products to market faster and respond more effectively to changing consumer demands [13]. 3. challenges of digital transformation while the benefits of digital transformation are clear, businesses face several challenges in adopting digital technologies. these include: 3.1 digital skills gap one of the biggest challenges is the lack of digital skills among employees. many businesses, particularly in developing countries, struggle to find workers with the expertise needed to implement and manage digital technologies. governments and educational institutions must invest in digital american journal of business management, economics and banking volume 25 june 2024 p a g e | 115 www.americanjournal.org literacy programs to address this skills gap and ensure that businesses can fully leverage digital tools [14]. 3.2 cybersecurity risks as businesses become more digital, they are increasingly vulnerable to cyberattacks. companies must invest in robust cybersecurity measures to protect their data and systems from hackers. the integration of blockchain technology offers a potential solution to this challenge, as it provides enhanced security through decentralized networks and encryption [15]. 3.3 regulatory challenges the regulatory environment surrounding digital technologies is constantly evolving, and businesses must navigate complex legal frameworks to ensure compliance. issues such as data privacy, intellectual property rights, and cross-border regulations can pose significant challenges for companies operating in the global marketplace [16]. conclusion digital transformation has become a key driver of competitiveness in the global economy. by adopting digital technologies such as ai, big data, cloud computing, and blockchain, businesses can enhance operational efficiency, improve customer engagement, and expand their global reach. however, challenges such as the digital skills gap, cybersecurity risks, and regulatory hurdles must be addressed to fully realize the benefits of digital transformation. companies that successfully navigate these challenges will be better positioned to compete internationally and thrive in the digital age. references 1. schwab, k. (2017). the fourth industrial revolution. new york: crown business. 2. world economic forum. (2018). "digital transformation initiative." wef report. available at: https://www.weforum.org 3. davenport, t., & ronanki, r. (2018). "artificial intelligence for the real world." harvard business review, 96(1), 108-116. 4. brynjolfsson, e., & mcafee, a. (2014). the second machine age: work, progress, and prosperity in a time of brilliant technologies. new york: w.w. norton & company. 5] kitchin, r. (2014). the data revolution: big data, open data, data infrastructures and their consequences. london: sage publications. 6 marston, s., et al. (2011). "cloud computing the business perspective." decision support systems, 51(1), 176-189. 7. armbrust, m., et al. (2010). "a view of cloud computing." communications of the acm, 53(4), 50-58. 8. tapscott, d., & tapscott, a. (2016). blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. new york: penguin random house. 9. saberi, s., et al. (2019). "blockchain technology and its relationships to sustainable supply chain management." international journal of production research, 57(7), 2117-2135. 10. he, w., & zhang, w. (2019). "social media and e-commerce: strategies for enhancing competitiveness." journal of business research, 101, 107-119. american journal of business management, economics and banking volume 25 june 2024 p a g e | 116 www.americanjournal.org 11. dunning, j. h. (2001). "the eclectic (oli) paradigm of international production: past, present and future." international journal of the economics of business, 8(2), 173-190. 12. casey, m. j., & wong, p. (2017). "global supply chains are about to get better, thanks to blockchain." harvard business review. available at: https://hbr.org 13. westerman, g., bonnet, d., & mcafee, a. (2014). leading digital: turning technology into business transformation. boston: harvard business review press. 14. bughin, j., et al. (2018). "skill shift: automation and the future of the workforce." mckinsey global institute report. available at: https://www.mckinsey.com 15 conti, m., et al. (2018). "a survey on security and privacy issues of blockchain technology." ieee communications surveys & tutorials, 21(2), 1443-1474. 16. chander, a. (2013). the electronic silk road: how the web binds the world in commerce. new haven: yale university press. 17. abdullaev, a. k. (2023). the influence of the transformations in uzbekistan’s economy on personnel issues during the great patriotic war. вестник волгоградского государственного университета. серия 4: история. регионоведение. международные отношения, 28(3), 42-53. 18. abdullaev, a. (2021). some aspects of the development of the transport sector in the central asian region. in инновационные технологии в менеджменте: управленческий и социальный аспекты (pp. 296-299). 19. abdullaev, a. k. (2021). the improvement of transport system leads to economic growth: a myth or a reality?. international relations: politics, economics, law, 2020(1), 39-47. 20. sharipova, u. a. (2023). the use of competitor analysis as a factor of increasing the competitiveness of the company. american journal of business management, economics and banking, 13, 90-92. 21. sanoqulov, a., & sharipova, u. (2022). jahon iqtisodiyotida kriptovalyutaning o’rni va istiqbollari. евразийский журнал социальных наук, философии и культуры, 2(11), 96-99. 22. sharipova, u. a. (2023). features of the development of internet marketing at the present stage. world economics and finance bulletin, 23, 90-91. american journal of business management, economics and banking issn (e): 2832-8078 volume 23, | april 2024 p a g e | 170 www.americanjournal.org optimizing transaction management for enhanced customer loyalty in the digital era dr. owa. fredrick cna 1, patricia ngozi nwabudike 2 mrs nnabugwu obiageli chinwe 3 1accountancy department, delta state polytechnic, ogwashi-uku-, delta state, nigeria 2metalwork technology education, federal college of education (technical), asaba 3department of entrepreneurship studies, university of nnamdi azikiwe awka email: chukwumenimefred@yahoo.com1, nwabudikepat@gmail.com2. a b s t r a c t k e y w o r d s this paper examined the multifaceted dimensions shaping customer loyalty in the digital era, emphasizing the pivotal role of efficient transaction management. through a comprehensive literature review, factors influencing customer loyalty such as convenience, personalization, trust, and security are explored, highlighting the critical importance of seamless transaction experiences. the study elucidates strategies for optimizing transaction management, including investments in technology, personalization of customer interactions, seamless omnichannel integration, and a focus on security and compliance. additionally, case studies from nigeria, including e-commerce platforms like konga and jumia, as well as loyalty programs from telecommunications companies and banks, underscore the tangible impact of optimized transaction management on increasing customer retention and loyalty. the paper concludes with actionable recommendations for businesses to enhance transaction management, emphasizing the significance of employee training, data analytics utilization, omnichannel integration, security measures, and the development of customer loyalty programs. by prioritizing efficient transaction processes and leveraging data-driven insights, businesses can foster enduring relationships with customers and thrive in the competitive digital landscape. transaction management, customer loyalty, digital era, optimization introduction in today's fast-paced digital landscape, optimizing transaction management is paramount for businesses striving to cultivate enhanced customer loyalty. the advent of e-commerce, mobile banking, and digital payment platforms has revolutionized the way transactions are conducted, presenting both challenges and opportunities for businesses to streamline their operations and foster american journal of business management, economics and banking volume 23 april 2024 p a g e | 171 www.americanjournal.org stronger connections with customers. by implementing efficient transaction management systems, companies can ensure seamless and secure transactions, thereby enhancing the overall customer experience. this is particularly crucial in an era where consumers demand convenience, reliability, and personalized interactions at every touchpoint of their purchasing journey (cao & zhang, 2020). moreover, in the digital era, where competition is fierce and customer expectations are continually evolving, businesses must leverage innovative technologies and data analytics to optimize transaction management. through the strategic utilization of data-driven insights, companies can gain a deeper understanding of customer preferences, behaviors, and purchasing patterns. this enables them to tailor their transactional processes, offer personalized recommendations, and anticipate customer needs, thereby fostering a sense of loyalty and affinity towards the brand (ravichandran & rai, 2021). by harnessing the power of artificial intelligence, machine learning, and predictive analytics, businesses can streamline transactional workflows, mitigate risks, and deliver hyper-personalized experiences that resonate with customers on a deeper level. furthermore, in an increasingly interconnected digital ecosystem, where competition knows no boundaries, businesses must prioritize transparency, security, and trust in their transactional interactions. by implementing robust cybersecurity measures, adhering to regulatory compliance standards, and adopting blockchain technology for enhanced transparency and immutability, companies can instill confidence and peace of mind among customers regarding the safety and integrity of their transactions (kshetri, 2018). as businesses increasingly rely on digital channels for transactions, the ability to manage these processes effectively becomes paramount. research has shown that seamless transaction experiences contribute significantly to customer satisfaction and loyalty, as customers are more likely to return to businesses that offer hassle-free and reliable transactional interactions (rigby et al., 2020). moreover, transaction management serves as a key touchpoint for building trust and credibility with customers. in an era marked by data breaches and security concerns, ensuring the security and integrity of transactions is crucial for maintaining customer trust. businesses that prioritize robust security measures and transparent transactional processes are better positioned to cultivate trust and confidence among their customer base. studies have highlighted the correlation between trust and customer loyalty, emphasizing the role of secure and transparent transaction management in fostering long-term relationships with customers (hennig-thurau et al., 2019). furthermore, effective transaction management enables businesses to gain valuable insights into customer preferences, behaviors, and purchasing patterns. by leveraging data analytics and transactional data, companies can tailor their offerings and personalized recommendations to meet the evolving needs and expectations of their customers. this personalized approach not only enhances the overall customer experience but also strengthens the bond between the customer and the brand, leading to increased loyalty and advocacy (zheng et al., 2021). the purpose of this paper is to explore the optimization of transaction management as a means to enhance customer loyalty in the digital era. in today's rapidly evolving digital landscape, where customer expectations are continuously shifting, understanding the significance of efficient transaction management is paramount for businesses aiming to cultivate enduring customer relationships. by investigating the strategies, technologies, and approaches that contribute to enhanced transaction management, this research aims to provide valuable insights for businesses seeking to bolster customer loyalty in an increasingly competitive market environment. through a comprehensive analysis of the role of transaction management in shaping the customer experience, american journal of business management, economics and banking volume 23 april 2024 p a g e | 172 www.americanjournal.org this study seeks to uncover actionable recommendations that can empower businesses to leverage transactional interactions as a key driver of sustained customer loyalty and organizational success. literature review customer loyalty refers to the willingness of a customer to continue purchasing goods or services from a particular business consistently over time. it reflects a customer's satisfaction with a brand or company, resulting in repeated purchases and potentially advocacy or positive word-of-mouth referrals. several factors contribute to customer loyalty, including product quality, customer service, brand reputation, pricing, and overall customer experience (zeithaml & bitner, 2003: liu, & yang, 2009). customer loyalty is a multifaceted concept that encompasses a customer's commitment and dedication to repeatedly purchase goods or services from a specific brand or company over time. it extends beyond mere satisfaction with a product or service to encompass emotional attachment, trust, and a willingness to advocate for the brand (oliver, 1999). loyalty can be measured through various indicators, including repeat purchases, frequency of interactions, willingness to recommend, and resistance to switching to competitors (reichheld & schefter, 2000). moreover, customer loyalty is not solely transactional but also relational, reflecting the ongoing relationship and interaction between the customer and the brand, influenced by factors such as perceived value, brand reputation, and the quality of the overall customer experience (zeithaml et al., 1996). furthermore, the concept of customer loyalty is dynamic and evolving, shaped by changing market dynamics, technological advancements, and shifting consumer preferences. with the proliferation of digital channels and social media platforms, customers now have more avenues to engage with brands, voice their opinions, and seek personalized experiences (lemon & verhoef, 2016). consequently, fostering customer loyalty requires businesses to adapt their strategies to meet the evolving needs and expectations of customers, leveraging data-driven insights, personalized interactions, and seamless experiences across various touchpoints (verhoef et al., 2015). factor influencing customer loyalty in the digital era reichheld and schefter (2000), kim and kim (2004), and verhoef et al. (2015), among others, to provide a comprehensive overview of the multifaceted dimensions shaping customer loyalty in the digital age. they stated that understanding the intricacies of customer loyalty has become paramount for businesses aiming to thrive in increasingly competitive markets. a multitude of factors contribute to shaping customer loyalty, encompassing both traditional elements and novel dynamics inherent to digital landscapes. the factor influencing customer loyalty in the digital era includes but not limited to; convenience: convenience emerges as a pivotal factor influencing customer loyalty in the digital era, with its profound impact evident across various aspects of consumer behavior and brand engagement. the ease of access to products and services facilitated by digital channels significantly enhances customer satisfaction and encourages repeat purchases (ha & stoel, 2009). whether through intuitive user interfaces, simplified checkout processes, or seamless mobile experiences, convenience reduces friction in the customer journey, fostering a sense of efficiency and reliability (kim & lennon, 2013). american journal of business management, economics and banking volume 23 april 2024 p a g e | 173 www.americanjournal.org moreover, the ubiquity of digital platforms enables customers to engage with brands at their convenience, transcending geographical barriers and time constraints (keiningham et al., 2017). as such, businesses that prioritize convenience in their digital offerings not only enhance customer loyalty but also position themselves competitively in an increasingly crowded marketplace. personalization: personalization has emerged as a crucial factor influencing customer loyalty in the digital era, reshaping how businesses interact with and retain their clientele. by tailoring experiences, products, and communications to individual preferences and behaviors, businesses can deepen customer engagement and foster long-term loyalty (verhoef et al., 2015). through the utilization of data analytics and artificial intelligence, companies can glean insights into customer preferences, purchase history, and browsing patterns to deliver personalized recommendations and offerings (xie et al., 2018). this personalized approach not only enhances customer satisfaction by providing relevant and timely content but also strengthens the emotional connection between the customer and the brand (li et al., 2019). moreover, personalization fosters a sense of exclusivity and importance, making customers feel valued and understood, which in turn increases their propensity for repeat purchases and brand advocacy (fournier & alvarez, 2019). in today's competitive digital landscape, prioritizing personalization is essential for businesses looking to not only attract new customers but also cultivate lasting loyalty and drive sustainable growth. user experience: user experience (ux) stands as a pivotal factor influencing customer loyalty in the digital era, profoundly shaping the interactions between consumers and digital platforms. a seamless and intuitive user interface, coupled with effortless navigation and accessibility, plays a critical role in enhancing customer satisfaction and driving repeat engagement (hassenzahl, 2010). positive ux not only facilitates efficient task completion but also fosters emotional connections between users and brands, thereby reinforcing loyalty and advocacy (morschett et al., 2015). furthermore, a well-crafted ux design contributes to reduced cognitive load, enhancing usability and overall user satisfaction (hassenzahl & tractinsky, 2006). by prioritizing user-centric design principles and continuous optimization based on user feedback and behavior, businesses can cultivate a loyal customer base and gain a competitive edge in the digital landscape (nielson, 2012). trust and security: in the digital era, trust and security play a paramount role in influencing customer loyalty, as consumers increasingly rely on digital platforms for their transactions and interactions. establishing trust in the handling of personal data and ensuring robust security measures are imperative for fostering loyalty and maintaining long-term relationships with customers (komiak & benbasat, 2006). studies have shown that perceived security significantly influences consumers' intentions to engage with online platforms, with concerns about data breaches and privacy violations acting as deterrents to loyalty (wang & emurian, 2005). building trust through transparent data practices, encryption technologies, and adherence to stringent security standards not only mitigates customer concerns but also reinforces brand credibility and reliability in the digital realm (riegelsberger et al., american journal of business management, economics and banking volume 23 april 2024 p a g e | 174 www.americanjournal.org 2003). thus, businesses that prioritize trust and security in their digital operations can cultivate a loyal customer base and gain a competitive advantage in an increasingly digital marketplace. social influence: social influence plays a significant role in shaping customer loyalty in the digital era, as consumers increasingly rely on social media and online reviews to inform their purchasing decisions and brand perceptions (cheung et al., 2009). user-generated content, such as ratings, reviews, and social media posts, amplifies the impact of word-of-mouth communication, influencing the attitudes and behaviors of potential customers (zhang et al., 2014). positive interactions and endorsements from peers and influencers can enhance brand credibility and trustworthiness, leading to increased loyalty and advocacy (hennig-thurau et al., 2004). conversely, negative reviews or viral incidents can erode trust and loyalty, highlighting the importance of managing online reputation and fostering positive social interactions (lee & youn, 2009). by actively engaging with customers on social platforms, encouraging user-generated content, and responding promptly to feedback, businesses can harness the power of social influence to cultivate a loyal customer base and thrive in the digital landscape. the role of transaction management in customer loyalty transaction management refers to the process of ensuring the integrity, consistency, and reliability of transactions within a database system. a transaction typically represents a single logical operation within the database, such as updating a record, inserting new data, or deleting existing data. proper transaction management is crucial for maintaining data integrity and recovering from failures or errors (haerder & reuter, 1983; bernstein et al., 1987; gray & reuter, 1993). transaction management plays a crucial role in customer retention by ensuring seamless and satisfactory interactions throughout the purchase process. efficient transaction management encompasses various aspects, including order processing, payment handling, and post-purchase support, all of which contribute to customer satisfaction and loyalty (wang & head, 2007). a smooth and hassle-free transaction experience not only instills confidence in customers but also enhances perceptions of reliability and professionalism (van riel et al., 2001). furthermore, effective transaction management facilitates timely order fulfillment and delivery, minimizing delays and errors that could lead to dissatisfaction (donthu & garcia, 1999). by prioritizing transaction management, businesses can strengthen relationships with customers, increase repeat purchases, and ultimately drive long-term loyalty and profitability (lemon & verhoef, 2016). evans and wurster (2000) emphasized the significance of transaction management in shaping customer perceptions of service quality and overall satisfaction. their findings suggested that efficient transaction processes positively influence customer loyalty by reducing perceived risks and uncertainties associated with online transactions. similarly, studies by huang and benyoucef (2013) highlighted the impact of transaction management on enhancing customer trust and confidence in ecommerce platforms. they argued that transparent and secure transaction processes contribute to building trust, which in turn fosters repeat purchases and brand loyalty among customers. furthermore, studies by reichheld and schefter (2000) highlighted the correlation between seamless transaction experiences and increased customer retention rates, demonstrating the tangible impact of effective transaction management strategies on long-term customer loyalty. american journal of business management, economics and banking volume 23 april 2024 p a g e | 175 www.americanjournal.org verhoef et al. (2015) have investigated the influence of digital transaction management systems on customer loyalty in the e-commerce domain. their findings underscored the importance of personalized and efficient digital transactions in fostering customer engagement and loyalty. additionally, research by liang et al. (2020) delved into the role of artificial intelligence and machine learning in optimizing transaction management processes to enhance customer experiences, ultimately leading to higher levels of loyalty in online settings. however, studies also acknowledge potential challenges in transaction management that can impede customer loyalty. for instance, research by zeithaml et al. (2002) highlighted the detrimental effects of service failures and transactional errors on customer loyalty, underscoring the critical need for effective service recovery mechanisms. similarly, han et al. (2019) explored the impact of transactional frictions, such as long wait times and complex procedures, on customer loyalty in offline retail settings. their findings emphasized the importance of streamlining transaction processes to mitigate friction points and nurture stronger customer relationships. strategies for optimizing transaction management effective transaction management is crucial for businesses to ensure smooth operations and maximize efficiency in various domains such as finance, supply chain, and customer relations. this necessitates the implementation of strategies aimed at optimizing transaction processes. strategies for optimizing transaction management encompass a range of approaches, including automation, standardization, and streamlining of workflows. the strategies for optimizing transaction management includes but not limited to; invest in technology: investing in technology stands as a paramount strategy for optimizing transaction management, offering unparalleled efficiency, accuracy, and scalability in today's dynamic business landscape. leveraging cutting-edge software solutions such as blockchain for secure and transparent transactions, artificial intelligence for predictive analytics and process automation, and cloud computing for enhanced accessibility and flexibility can revolutionize transactional processes. these technologies streamline workflows, mitigate risks, and reduce operational costs, ultimately fostering a competitive edge in the market. as evidenced by industry reports and studies (gartner, 2021; mckinsey, 2020), organizations embracing technological advancements in transaction management witness significant improvements in transaction speed, accuracy, and overall performance, positioning them for sustained growth and success in the digital era. personalize customer interactions: personalizing customer interactions emerges as a strategic imperative for optimizing transaction management, fostering stronger relationships and driving enhanced customer satisfaction. by leveraging data analytics and customer relationship management (crm) tools, businesses can gain deep insights into individual preferences, behaviors, and transaction histories, enabling tailored experiences at every touchpoint. whether through personalized recommendations, targeted marketing campaigns, or proactive support, customization cultivates a sense of value and loyalty among customers, ultimately leading to increased transaction frequency and higher retention rates. research from leading industry analysts such as forrester (2021) and harvard business review (2019) american journal of business management, economics and banking volume 23 april 2024 p a g e | 176 www.americanjournal.org underscores the significant impact of personalized customer interactions on transactional success, highlighting the imperative for organizations to invest in strategies that prioritize individualized engagement throughout the transaction lifecycle. ensure seamless omnichannel integration: ensuring seamless omnichannel integration emerges as a pivotal strategy for optimizing transaction management, facilitating a cohesive and interconnected experience across various customer touchpoints. by integrating channels such as online platforms, mobile applications, physical stores, and social media, businesses can create a unified environment where customers can initiate, complete, and track transactions seamlessly. leveraging advanced technologies like api integrations, cloud computing, and real-time data synchronization enables organizations to synchronize inventory, pricing, and customer information in real-time, minimizing discrepancies and enhancing overall efficiency. research from reputable sources such as deloitte (2020) and accenture (2021) emphasizes the significance of omnichannel integration in driving customer satisfaction, loyalty, and ultimately, transactional success. thus, prioritizing seamless omnichannel experiences stands as a cornerstone strategy for organizations seeking to optimize transaction management in today's digital landscape. focus on security and compliance: focusing on security and compliance stands as a paramount strategy for optimizing transaction management, safeguarding sensitive data and ensuring regulatory adherence in an increasingly digital environment. implementing robust security measures such as encryption, multi-factor authentication, and data loss prevention protocols helps mitigate the risk of cyber threats and unauthorized access, instilling trust and confidence among customers. moreover, maintaining compliance with industry regulations such as gdpr, pci dss, and hipaa not only mitigates legal risks but also demonstrates a commitment to ethical business practices. research from leading institutions like pwc (2021) and the ponemon institute (2020) underscores the critical importance of prioritizing security and compliance in transaction management, highlighting its role in protecting both organizational assets and customer trust. optimize transaction speed and convenience: optimizing transaction speed and convenience serves as a fundamental strategy for enhancing transaction management efficiency, meeting the evolving demands of today's fast-paced market. by leveraging technologies like real-time payment processing, mobile wallets, and contactless payment solutions, businesses can streamline transactional processes and minimize friction points for customers. this focus on speed and convenience not only improves overall transaction throughput but also enhances the overall customer experience, leading to increased satisfaction and loyalty. research from reputable sources such as mckinsey & company (2021) and the federal reserve (2020) underscores the importance of prioritizing transaction speed and convenience as a key driver of competitive advantage in the digital age, emphasizing its role in meeting consumer expectations and driving business growth. american journal of business management, economics and banking volume 23 april 2024 p a g e | 177 www.americanjournal.org case studies of optimized transaction management for customer loyalty in nigeria konga's loyalty program: konga, one of nigeria's leading e-commerce platforms, has implemented a loyalty program called "konga rewards." customers earn points for every purchase made on the platform, and these points can be redeemed for discounts on future purchases or other rewards. konga utilizes transaction data to analyze customer behavior, preferences, and spending patterns, enabling them to tailor rewards and promotions to individual customers, thereby enhancing loyalty (rahma, 2023) mtn nigeria's mtn loyalty program: mtn, one of the largest telecommunications companies in nigeria, operates a loyalty program aimed at rewarding its subscribers. through transaction management, mtn tracks subscribers' usage patterns, such as call duration, data usage, and recharge history. subscribers earn loyalty points based on their transactions, which can be redeemed for airtime, data bundles, or other rewards. this program helps mtn increase customer retention and loyalty in a highly competitive market jumia's jumia prime: jumia, another prominent e-commerce platform in nigeria, offers a subscription-based loyalty program called "jumia prime." subscribers pay an annual fee and receive benefits such as free delivery, exclusive deals, and priority customer support. jumia leverages transaction data to identify prime subscribers' purchasing habits and preferences, allowing them to offer personalized recommendations and promotions to enhance loyalty and increase customer lifetime value. bank loyalty programs: several banks in nigeria operate loyalty programs aimed at rewarding customers for their transactions and banking activities. for example, customers may earn points for every transaction conducted using their bank's debit card or for maintaining a minimum balance in their accounts. these points can be redeemed for various rewards, including airtime top-ups, shopping vouchers, or travel discounts. banks analyze transaction data to understand customer behavior and tailor loyalty rewards accordingly, thereby fostering customer loyalty. conclusion in conclusion, optimizing transaction management stands as a critical strategy for businesses aiming to enhance customer loyalty in the digital era. as highlighted through the exploration of various factors influencing customer loyalty, including convenience, personalization, user experience, trust and security, and social influence, effective transaction management plays a pivotal role in shaping customer perceptions and experiences. by investing in technology, personalizing customer interactions, ensuring seamless omnichannel integration, focusing on security and compliance, and optimizing transaction speed and convenience, businesses can streamline their operations and foster stronger connections with customers. moreover, case studies from nigeria, including konga's loyalty program, mtn nigeria's loyalty program, jumia's jumia prime, and bank loyalty programs, demonstrate the tangible impact of optimized transaction management on increasing customer retention and loyalty. thus, by prioritizing efficient transaction processes and leveraging data-driven american journal of business management, economics and banking volume 23 april 2024 p a g e | 178 www.americanjournal.org insights, businesses can cultivate enduring relationships with customers and drive sustained success in today's competitive digital landscape. recommendations based on the comprehensive literature review and case studies provided, here is a list of recommendations for optimizing transaction management to enhance customer loyalty in the digital era: • provide comprehensive training to employees involved in transaction management to ensure they are equipped with the knowledge and skills needed to deliver exceptional service. • utilize data analytics and crm tools to gain insights into individual customer preferences and behaviors. • integrate online platforms, mobile apps, physical stores, and social media channels to create a cohesive and interconnected customer experience. • implement robust security measures such as encryption, multi-factor authentication, and data loss prevention protocols to safeguard sensitive data and ensure regulatory adherence. • leverage real-time payment processing, mobile wallets, and contactless payment solutions to streamline transactional processes and minimize friction points for customers. • develop loyalty programs that reward customers for their transactions and engagement with your brand. references 1. accenture. 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(2021). personalized recommendation algorithms driven by big data: a survey. ieee access, 9, 13254-13281. https://www.nngroup.com/articles/usability-101-introduction-to-usability/ https://businesspost.ng/brands-products/konga-introduces-loyalty-scheme-for-shoppers/ https://businesspost.ng/brands-products/konga-introduces-loyalty-scheme-for-shoppers/ american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 1 www.americanjournal.org organization of internal audit of investment activities umaraliev sanjar sultonalievich tashkent state university of economics independent researcher a b s t r a c t k e y w o r d s this article analyzes the importance and methods of organizing internal audit of investment activities. internal audit is considered an important tool for improving the efficiency of investment processes, ensuring the rational use of financial resources, and minimizing risks. the article covers key areas such as planning investment projects, reviewing financial reports, and improving the internal control system. additionally, recommendations are provided for identifying and eliminating shortcomings in investment activities through internal audit. this study aims to develop internal audit to enhance effective management of investments and reduce financial risks in organizations. investment activity, internal audit, financial control, investment risks, internal control system, financial resources, investment projects, efficiency. introduction investment activity is one of the main factors for the financial stability and development of any company or organization. effective management of investments allows a company to increase its resources, invest in new projects, and improve its competitiveness. therefore, internal audit of investment activity holds great importance as it helps to assess the company’s financial condition, eliminate errors and deficiencies, and ensure targeted and efficient use of investments. in today’s global economy, the importance of investment activity is growing. the financial stability and growth of organizations largely depend on the effective and purposeful management of investments. deficiencies and errors in investment processes may lead to financial losses, which pose a threat to the organization’s stability. therefore, organizing internal audit of investment activities and improving its efficiency are among the key tasks. the organization of internal audit plays a vital role in enhancing the effectiveness of a company’s governance, risk management, and control processes. internal audit serves as an independent and objective assurance function that evaluates the adequacy and efficiency of internal controls, identifies potential risks, and helps ensure compliance with policies and regulations. by providing management with timely and reliable information, internal audit supports informed decision-making and promotes organizational transparency and accountability. in today’s dynamic business environment, where risks and regulatory requirements are constantly evolving, the proper organization of internal audit is essential to safeguard assets, improve operational american journal of business management, economics and banking volume 40 september2025 p a g e | 2 www.americanjournal.org efficiency, and strengthen financial reporting. this introduction aims to explore the key principles, frameworks, and best practices involved in establishing and maintaining an effective internal audit function within organizations. internal audit plays a crucial role in properly directing investment activities, identifying and minimizing risks, and ensuring efficient use of financial resources. effective organization of internal audit ensures transparency of investment projects and reliability of reports, which facilitates external audit and financial control. additionally, internal audit ensures compliance of investment activities with internal regulations, company policies, and standards. this process serves as an important tool for achieving the organization’s strategic goals in the investment sector. analysis and results a systematic approach to studying the issues of organizing audit and internal control primarily involves identifying the characteristics of the investment process. these characteristics directly or indirectly influence the organization and effectiveness of external audit and internal control systems by setting specific goals and tasks, or indirectly through accounting records, control environment, and control tools. internal audit is a critical component of an organization’s control system, designed to provide independent assurance that business processes are operating effectively and risks are being managed appropriately. the organization of internal audit involves establishing clear structures, responsibilities, and procedures to ensure that audits are conducted systematically, objectively, and efficiently. effective internal audit functions contribute to enhancing corporate governance, improving risk management practices, and safeguarding an organization’s assets. as businesses face increasing complexity and uncertainty, organizing internal audit with well-defined policies and a strategic approach becomes crucial for achieving organizational goals and maintaining stakeholder confidence. this introduction outlines the fundamental aspects of organizing internal audit, emphasizing the importance of aligning audit activities with the company’s objectives and regulatory requirements, while ensuring continuous improvement and adaptability. research shows that the main features affecting the organization of audit for the investment process, as well as the formation and development of the internal control system, are as follows: the diversity of investment activity subjects; the broad scope of investment objects; the duration of investment projects; inability of the investment process subjects themselves to control the preservation of assets; the execution of inspections by multiple entities; and that project work is carried out both by internal forces and with the involvement of external organizations. many participants are involved in the investment process, each setting different goals and objectives. consequently, on one hand, the intermediate and final information they consume varies, and on the other hand, the auditor uses various procedures aimed at ensuring the reliability of this information. at least the following groups of information users related to investment projects can be identified: primarily those who use the investment object, including internal users with administrative authority (such as the director of a commercial organization, project manager, financial director, etc.) and other employees who use information on investment projects in one way or another (economists, financiers, accountants, etc.); external users of information: entities making decisions to invest or not invest in a particular investment activity or project; users outside the project: banks, insurance companies, american journal of business management, economics and banking volume 40 september2025 p a g e | 3 www.americanjournal.org intermediary and other service providers; users belonging to government institutions: tax inspections, judicial authorities, state financial control bodies, municipal administrations, and others. identifying groups of information users related to the investment process allows dividing the audit and internal control objectives into stages and ensures confidentiality of information. information can be segmented based on characteristics such as the volume presented to certain groups of users and the subject of control. through this segmentation, information directly audited by external auditors and internal control is distinguished. it is considered that internal control forces can ensure control over the reliability of information for internal users, while government authorities should work with information that has passed independent audits. because information varies, different auditing procedures (methods) are used, and it is also appropriate to apply internal control procedures to organize audits of different information segments. thus, one of the systematic factors in organizing audits of investment processes is that control measures are conducted in the interests of the various groups of information users. one of the important characteristics of auditing investment activities is the diversity of investment objects, which determines the variety of audit objects. as mentioned, the main objects of investments are: newly established facilities or existing enterprises undergoing reconstruction; expansion of existing enterprises (i.e., the construction of second and subsequent phases); expansion of existing workshops; technical re-equipment of enterprises. enterprises' modernization mainly involves fixed production assets, working capital; securities, targeted monetary funds; new scientific and technical products; production of new types of products within existing manufacturing sites; intellectual property; property rights; tangible personal property; and property contributions to the company’s real assets all of which can be investment objects. considering this, it can be noted that in economic literature, the division of audit into organizational stages should be clarified from the perspective of the features of investment activity objects. investment activity is a process of continuous and targeted investment of an organization’s financial resources. to ensure its efficiency and security, organizing internal audit is necessary. internal audit in analyzing and controlling investment activity encompasses the following aspects: table 1 some aspects of organizing internal audit of investment activities regulation and management of investment processes rational use of financial resources identification and minimization of risks accuracy and reliability of financial reports effectiveness of the internal control system during the internal audit, the processes of planning, approval, and implementation of investment projects are reviewed. the completeness of documents, agreements, and investment contracts is checked. any violations or deficiencies in these processes are identified, and recommendations are provided to address them. internal audit evaluates the purposeful and efficient use of investments. by preventing the loss of investment funds and verifying cash flows and settlements, the financial stability of the organization is maintained. risks in investment activities, such as market risk, credit risk, and project delays, are assessed through internal audit. measures aimed at eliminating and controlling these risks are developed. internal audit ensures the accuracy and reliability of financial reports related to investment activities. this supports the company’s investment decisions and provides trustworthy information to external auditors. the effectiveness of the internal control system in investment activities is analyzed. strengths and weaknesses of the control are identified, and recommendations for improving internal control are developed. american journal of business management, economics and banking volume 40 september2025 p a g e | 4 www.americanjournal.org internal audit of investment activities plays a crucial role in the purposeful, efficient, and secure management of an organization’s financial resources. based on the analysis results, internal audit helps improve investment processes, reduce risks, and increase the effectiveness of investments. therefore, properly organizing and continuously improving the internal audit of investment activities is one of the key tasks. investment activity is one of the priority areas for any organization, and its efficient and targeted implementation plays an important role in ensuring the company’s financial stability. internal audit is an essential tool for ensuring the proper and effective management of investment processes, rational allocation of financial resources, and prevention of investment losses. through internal audit, shortcomings and errors in investment activities are timely identified, and appropriate measures are taken to eliminate them. this helps increase the efficiency of the organization’s investment projects, minimize risks, and ensure the reliability of financial reports. moreover, effective organization and continuous improvement of internal audit make it possible to control investment processes, ensure compliance with the company’s investment policies, and identify future investment development. these processes contribute to strengthening the company’s financial stability and overall strategy. in conclusion, organizing internal audit of investment activities is not only a control tool but also a robust system necessary for achieving the company’s strategic goals in the investment sector. in some cases, large-scale investment audits cover almost all aspects of the commercial organization's financial and economic activities. however, when defining the purpose of investment audit, the focus is more on determining the accuracy and quality of information related to investment projects rather than the overall financial statements; uncovering hidden reserves and achieving planned indicators are also emphasized. research into the labor resources required to achieve these goals shows that while external audit efforts can achieve these results, they require excessively high labor costs. therefore, it is advisable to systematize the goals and objectives of investment audits and distinguish between tasks performed by internal control and those conducted by external auditors. additionally, it is important to consider that different tasks, even when performed with similar control procedures, affect the scope and application of these procedures. for example, inventory procedures to confirm balances in the “materials” account may be selectively carried out, while continuous inventory is used to confirm the presence of assets with the person responsible for material accountability. conclusion internal audit allows timely detection and elimination of errors and deficiencies that may arise in investment activities. this process helps the company manage its financial resources wisely and ensures targeted and efficient allocation of investments. additionally, internal audit plays an important role in minimizing risks in investment activities and in the proper planning of future projects. therefore, organizing and improving internal audit of investment activities is a priority task for any organization. the internal audit of investment activities is a critical component in ensuring the efficient, targeted, and secure management of an organization’s financial resources. by systematically evaluating investment processes, internal audit helps to identify and eliminate errors and shortcomings in a timely manner, thereby enhancing the effectiveness and reliability of investment projects. it plays a vital role in minimizing risks, safeguarding assets, and ensuring the accuracy and transparency of financial american journal of business management, economics and banking volume 40 september2025 p a g e | 5 www.americanjournal.org reporting related to investments. moreover, a well-organized internal audit system supports continuous improvement in investment management, compliance with internal policies, and strategic decisionmaking. this contributes significantly to the financial stability and long-term success of the organization. in summary, organizing internal audit in investment activities is not merely a control mechanism but a fundamental part of the organization’s strategic framework that drives sustainable growth and competitive advantage. references: 1. decree of the president of the republic of uzbekistan dated january 28, 2022, no. pf-60 “on the development strategy of new uzbekistan for 2022-2026.” https://president.uz/uz/lists 2. law of the republic of uzbekistan “on auditing activities,” article 32. urq-677, 25.02.2021. www.lex.uz 3. farrokh barzideh, soroush lotfi, mehdi mousapour, mojtaba aghaei. accounting for investment: challenges & criticisms. www.sciencejournal.in volume-3 (special issue 3), 2014. 4. improvements in ecosystem services from investments in natural capital. www.sciencejournal.in volume-352 (special issue 6292), 2016. 5. levina m.v. organization and methodology of economic analysis of financial investments. dissertation thesis, candidate of economic sciences. voronezh, 2011. https://president.uz/uz/lists http://www.sciencejournal.in/ http://www.sciencejournal.in/ american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 72 www.americanjournal.org issues of accounting for investment property based on international financial reporting standards mahmudov jamshed ashrafovich independent researcher, department of financial accounting and reporting, tashkent state university of economics a b s t r a c t k e y w o r d s the article examines real estate investments as a key sector that ensures economic growth and serves as a stable source of income. improving investment accounting in this field is essential not only for enhancing financial performance but also for managing risks and making strategic decisions. this paper explores the main methods and approaches necessary for improving the accounting of real estate investments. financial reporting, international financial reporting standards (ifrs), investment, investment property, valuation of investment property, income, expenses. introduction at the current stage of consistent economic reforms being implemented in our republic, special attention is being paid to the development of business entities and the strengthening of their investment activity. efficient utilization of the existing assets of business entities plays an essential role in the development of investment activity. among the objects of investment assets, investment properties occupy a significant share. at the same time, such properties increase their capital value over the long term and create opportunities for investors to gain additional income. investment property refers to long-term assets such as land plots, buildings, and structures, whose value changes over time. proper accounting of these assets, accurate determination of their value, and correct reflection in financial statements are crucial in the management of the economy. in the republic of uzbekistan, improving the accounting system in the real estate sector remains a pressing issue. there is a need to adopt international experience and modern technologies in this area. in particular, adapting to international financial reporting standards (ifrs) is important to ensure fair value measurement, transparency in financial reporting, and improvement of the investment environment. therefore, this study analyzes the existing problems in the accounting of investment property, examines international practices, and develops recommendations applicable to the conditions of uzbekistan. the purpose of accounting for investment property includes the following key aspects: assessment of financial results: determining the profitability and efficiency of real estate investments, which plays a significant role in investors’ decision-making processes; american journal of business management, economics and banking volume 40 september2025 p a g e | 73 www.americanjournal.org risk management: identifying and evaluating potential risks arising during the investment process and developing strategies to mitigate them; identification of income sources: analyzing and optimizing income derived from real estate assets (rental payments, gains from sales, etc.); market analysis: monitoring market trends and demand to update and adapt investment strategies; optimization of accounting processes: increasing efficiency through the automation of accounting and preparation of financial statements; development of investment strategies: evaluating various investment opportunities and selecting the most effective strategies; ensuring transparency for investors: providing clear and understandable financial reports to investors, which increases their confidence and ensures openness in the investment process; long-term planning: defining future investment opportunities and development strategies to ensure sustainable growth. literature review shahnoza muzrapova, in her scientific research, emphasizes the necessity of improving investment property accounting based on international financial reporting standards (ifrs). in particular, her studies analyze the practical aspects of accounting under ias 40 – “investment property”, focusing on fair value measurement and its impact on the accounting system. she also highlights the importance of digital approaches in the transformation process and examines issues related to enhancing the transparency of financial reporting. researchers r. irisboyev, d. jo‘rayeva, and u. eshmuradov have investigated the improvement of accounting for capital investments in agro-clusters in accordance with international standards. their study discusses issues such as the reflection of transactions in account 0800, accounting for unfinished construction and the acquisition of fixed assets. in addition, the paper analyzes the practical aspects of accounting based on national accounting standard (nas) no. 5 and nas no. 21. j. salokhiddinov, in his research, examines the current state of financing enterprises with foreign investment. the paper discusses both traditional and innovative financing mechanisms, including bank loans, leasing, capital markets, and public-private partnerships. furthermore, the study provides scientifically grounded proposals and recommendations aimed at improving the financing system for enterprises with foreign investment in the republic of uzbekistan. a. khurramov, in his academic work, analyzes the practice of financing investment projects of enterprises in the republic of uzbekistan. the study explores the role of the banking and financial system, the possibilities of self-financing by enterprises, and the mechanisms for attracting foreign investment. moreover, it reviews advanced practices that ensure the financial stability of investment projects and the efficient use of resources, and develops recommendations adapted to the conditions of uzbekistan. the study employed comparative analysis, analysis of normative and legal documents, as well as tabular and statistical methods. international and national standards were compared to identify existing problems in practice, and practical recommendations were developed to address these issues. american journal of business management, economics and banking volume 40 september2025 p a g e | 74 www.americanjournal.org analysis and results efficient management and development of the investment property sector are among the key factors ensuring the stability and growth of a country’s economy. therefore, improving property accounting, determining its value, and enhancing investment efficiency should be carried out using modern and scientifically grounded methods. firstly, one of the main problems in property accounting is the uncertainty in value determination and the use of outdated valuation methods. traditional valuation approaches often fail to fully reflect market fluctuations, which may lead to errors in investment decision-making. therefore, the adoption of international standards (such as ifrs 13 – fair value measurement) and advanced valuation methodologies, as well as the development of a professional appraiser training system, are of great importance. secondly, automation and digitalization of accounting processes ensure accuracy and timeliness in real estate accounting. through modern information systems, it is necessary to establish a comprehensive database of property objects and enable real-time monitoring of the financial indicators of investment projects. this not only improves management efficiency but also enhances the transparency and reliability of financial reporting. thirdly, it is essential to improve legal mechanisms in managing real estate investments. the legal status and completeness of documentation related to investment property help minimize financial risks and increase investor confidence. the introduction of electronic registries and blockchain technologies can protect property rights and automatically record changes in ownership. fourthly, advanced financial models should be applied to assess investment project profitability and mitigate investment risks. this, in turn, contributes to increasing investment efficiency and optimizing the allocation of financial resources. the systematic and effective implementation of these measures will make the accounting system in the investment property sector more transparent, competitive, and attractive. as a result, the inflow of investments into various sectors of the national economy will increase, thereby strengthening economic growth and stability. therefore, particular attention should be paid to introducing advanced technologies, adopting international experience, and training qualified specialists in improving the accounting of investment property. conclusion improving the accounting of real estate investments is essential not only for enhancing financial performance but also for effective risk management and strategic decision-making. success in this field can be achieved through the implementation of innovative technologies, the application of risk management strategies, and the optimization of accounting processes. these approaches will play a crucial role in ensuring more efficient management of real estate investments in the future. based on the above considerations, it can be concluded that the timely and accurate recognition of investment property in accounting records, as well as its valuation in accordance with international standards, ensures the reliability of financial statements and strengthens the overall transparency of financial reporting. american journal of business management, economics and banking volume 40 september2025 p a g e | 75 www.americanjournal.org references 1. the law of the republic of uzbekistan “on accounting” (new edition), april 13, 2016. 2. international financial reporting standards (ifrs), ias 40 – investment property. 3. muzrapova, sh. (2025). transformation of investment property accounting based on international standards. journal of green economy and development, no. 3. 4. irisboyev, r., jo‘rayeva, d., & eshmuradov, u. (2024). improving the accounting of capital investments in agro-clusters based on international standards. journal of green economy and development, no. 1. 5. salokhiddinov, j. (2025). improving the financing of enterprises with foreign investment participation. journal of green economy and development, no. 6. 6. khurramov, a. (2025). improving the practice of financing investment projects of enterprises in the republic of uzbekistan. scientific journal of actuarial finance and accounting, vol. 5, no. 1. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 103 www.americanjournal.org assessing the impact of just-in-time logistics on effective inventory management in construction projects in the south-south region of nigeria 1 glory williams archibong; 2 kelechi enyinna ugwu; 3 erasmus ejike duru 1department of procurement management, federal university of technology centre of excellence in sustainable procurement, environmental and social standards (futo-spess), imo state, nigeria 2department of management technology, federal university of technology, owerri, imo state, nigeria 3department of financial management, federal university of technology, owerri, imo state, nigeria corresponding author: email: geenelly76@gmail.com tel: +2348034092108 a b s t r a c t k e y w o r d s the construction industry in nigeria’s south-south region faces significant challenges in material management, leading to inefficiencies, cost overruns, and delays in project delivery. this study investigates the impact of just-in-time (jit) logistics on effective inventory management in selected construction projects within this region, focusing on the interplay between inventory control and jit implementation. utilizing a correlational research design, data were collected from 208 respondents across top, middle, and lower management levels using a validated questionnaire based on a five-point likert scale. statistical analysis, including regression and anova, revealed a strong negative correlation (r = 0.751, r square = 0.564) between jit logistics and inventory levels, rejecting the null hypothesis that jit does not affect inventory levels (p = 0.000). survey results indicated high agreement (88.94%–98.08%) on the importance of inventory management practices, such as real-time tracking and optimal inventory levels, in supporting jit’s goals of waste reduction and timely material delivery. major challenges identified include complex return processes (93.27% agreement) and lack of coordination (97.60% agreement), which hinder jit effectiveness. proposed strategies to optimize construction efficiency include adopting advanced tracking systems, streamlining return processes, enhancing supplier coordination, implementing lean principles, and providing staff training. these findings construction efficiency, just-intime (jit) logistics, lean construction, inventory management, material management american journal of business management, economics and banking volume 41 october2025 p a g e | 104 www.americanjournal.org underscore the critical role of robust inventory control in successful jit logistics implementation and offer actionable insights for improving project efficiency in nigeria’s south-south region. introduction the construction industry is a critical driver of socio-economic development, providing essential infrastructure and contributing significantly to employment in many countries, including nigeria. in recent years, the industry has faced increasing pressure to improve productivity, reduce costs, and deliver projects on time, especially within developing economies where inefficiencies are more pronounced (ameh & osegbo, 2011). these inefficiencies are often linked to poor material management, logistical delays, and waste, which not only increase project costs but also compromise project quality and delivery schedules. as construction projects become more complex, particularly in fast-growing regions such as the south-south geopolitical zone of nigeria, the need for more streamlined and responsive supply chain systems becomes increasingly urgent. inventory control and logistics are central components of the construction supply chain. effective inventory control involves the systematic planning, ordering, storage, and usage of materials in a manner that minimizes cost while ensuring materials are available when needed (kumar & suresh, 2009). in construction, inventory costs can represent a significant portion—often over 60%—of total project expenditures (mahamid, 2013). poor inventory practices, such as overstocking, stockouts, and mismanagement, lead to material wastage, site congestion, and scheduling disruptions. these issues can be particularly acute in the south-south region of nigeria, where infrastructural and logistic challenges are common due to terrain, weather, and transportation constraints. in response to these challenges, the adoption of lean construction principles—particularly just-in-time (jit) logistics—has gained attention as a strategic solution. originally developed in the japanese manufacturing sector, jit emphasizes the timely delivery of materials in exact quantities as they are needed in the production process, thereby reducing inventory holding costs, space requirements, and waste (vrijhoef & koskela, 2000). when adapted to construction, jit logistics aims to synchronize material deliveries with project schedules, improve workflow continuity, and enhance overall efficiency. however, the success of jit implementation is closely tied to how well inventory is managed (oyedele et al., 2012). without reliable inventory data, coordination with suppliers, and contingency planning, jit can fail, leading to costly delays and underperformance. several empirical studies underscore the importance of inventory control in the successful implementation of just-in-time (jit) logistics within construction. ogunbiyi et al. (2014) found that nigerian firms with structured inventory systems experienced greater success with jit due to improved supplier coordination. similarly, alinaitwe (2009) identified poor material tracking as a major barrier to jit adoption in uganda, a challenge echoed in nigeria’s context. eshofonie (2008), focusing on the niger delta, revealed that inconsistent procurement and inaccurate forecasting led to material delays that hindered jit effectiveness. olanipekun et al. (2011) further noted that complex projects with weak inventory oversight suffered delays and resource inefficiencies, making jit unfeasible. even in more advanced economies, salem et al. (2005) concluded that jit logistics only improved site performance when supported by robust inventory control and delivery scheduling. collectively, these studies highlight a recurring theme: jit logistics cannot function in isolation. it requires precise inventory american journal of business management, economics and banking volume 41 october2025 p a g e | 105 www.americanjournal.org management, strong supplier collaboration, and reliable forecasting to succeed. these insights are particularly relevant to the south-south region of nigeria, where logistical constraints and infrastructural limitations make effective inventory control a critical factor in construction project efficiency. despite growing interest in jit principles among construction professionals in nigeria, there is limited empirical research examining the interrelationship between inventory control practices and jit logistics performance, particularly in the context of the south-south nigeria. this region, which includes states such as rivers, delta, akwa ibom, and bayelsa, is undergoing rapid urbanization and hosts a variety of large-scale residential, commercial, and industrial construction projects. however, it is also characterized by logistical difficulties, including poor transportation networks, supply chain fragmentation, and inconsistent material deliveries (oke et al., 2017). these conditions make it a valuable case for studying how inventory practices affect jit effectiveness. this study therefore seeks to investigate the relationship between inventory control and just-in-time logistics in selected construction projects within the south-south region of nigeria. the objectives of the study is to: 1. determine the extent to which inventory control influences the successful implementation of jit logistics. 2. determine the major challenges encountered in integrating jit logistics into projects. 3. determine the strategies to be adopted to optimize construction efficiency through better material management. to better guide the study, a null hypothesis which states that: just-in-time logistics does not affect inventory levels in selected construction projects within the south-south region of nigeria will be tested. by achieving these objectives, the research hopes to contribute to the growing body of knowledge on construction supply chain management in emerging economies and provide actionable insights for practitioners, policymakers, and researchers seeking to improve project delivery and efficiency. methodology the study adopted a correlational research design with a population comprising of employees of construction projects in selected cities across south-south nigeria. employees of construction projects within the cadre of top, middle, and lower management were considered for the study. from this population, a stratified random sampling was used to select 208 respondents to participate in the study. a questionnaire tagged ‘investigative questions on supplier diversity and delivery time’ was used to collect data for the study after proper validation. participants were asked to respond to the items by ticking on a five-point likert scale of strongly agree, agree, undecided, disagree and strongly disagree. american journal of business management, economics and banking volume 41 october2025 p a g e | 106 www.americanjournal.org results and discussion of findings table 1: investigative questions on just-in-time logistics question sa (%) ag (%) un (%) da (%) sd (%) total (%) our company manages returns more effectively... 52.88 42.79 1.92 0.96 1.44 100 implementing a robust just-in-time logistics system... 48.56 44.71 2.88 2.40 1.44 100 properly managed just-in-time logistics can provide... 47.60 46.63 4.33 0.48 0.96 100 just-in-time logistics contributes to sustainability... 46.15 50.96 0.48 0.48 1.92 100 poorly managed just-in-time logistics can result... 44.71 51.92 0.96 1.44 0.96 100 complex return processes can frustrate customers... 43.75 49.52 5.77 0.96 0.00 100 lack of coordination in just-in-time logistics... 45.19 52.40 0.48 0.96 1.92 100 table 2: investigative questions on inventory level. question sa (%) ag (%) un (%) da (%) sd (%) total (%) my firm has developed an effective inventory... 48.56 49.52 0.48 0.96 0.48 100 maintaining optimal inventory levels ensures... 47.60 48.56 0.48 0.48 2.88 100 advanced inventory tracking systems can provide... 44.71 45.67 6.25 2.40 0.96 100 keeping an adequate inventory level can prevent... 44.23 47.60 5.77 0.96 1.44 100 excessive inventory levels can lead to high... 43.75 47.12 3.37 5.29 0.48 100 insufficient inventory can result in stockouts... 46.15 43.27 6.73 0.96 2.88 100 poor inventory management can cause inaccuracies... 42.79 46.15 8.65 0.48 1.92 100 discussion extent to which inventory control influences the successful implementation of jit logistics the high agreement rates in tables 1 and 2 suggest a strong correlation between effective inventory control and successful jit logistics implementation. inventory management practices, such as realtime tracking and maintaining optimal inventory levels, directly support jit’s goal of delivering materials exactly when needed, reducing waste and costs (chopra & meindl, 2016). the data indicates that firms with robust inventory control systems are better equipped to implement jit logistics, as evidenced by the high agreement on operational efficiency and sustainability. conversely, poor inventory management can lead to inaccuracies and stockouts, which undermine jit logistics by causing delays and inefficiencies. thus, inventory control is a cornerstone of jit logistics, enabling firms to meet customer demands efficiently while minimizing costs and waste (slack et al., 2019). major challenges encountered in integrating jit logistics into projects the challenges identified align with existing literature on jit logistics. for instance, waters (2009) notes that jit systems require precise coordination among supply chain partners, and any misalignment can lead to delays and cost overruns, as supported by the response of the respondents. complex return processes are particularly problematic in construction, where material returns are common due to project variability, and inefficient processes can disrupt jit schedules (hopp & spearman, 2011). additionally, the high costs associated with poorly managed jit logistics reflect the need for robust american journal of business management, economics and banking volume 41 october2025 p a g e | 107 www.americanjournal.org systems to manage inventory and logistics, as errors in these areas can significantly impact project budgets (chopra & meindl, 2016). these challenges underscore the importance of addressing coordination, process efficiency, and stakeholder alignment to successfully integrate jit logistics into construction projects. strategies to optimize construction efficiency through better material management these strategies address the challenges identified in the survey while leveraging the strengths of effective inventory control and jit logistics. advanced tracking systems and streamlined return processes directly tackle coordination and efficiency issues, while lean principles and supplier collaboration align with jit’s focus on waste reduction. staff training ensures that these systems are effectively implemented, reducing errors and enhancing overall project efficiency. by adopting these strategies, construction firms can optimize material management, ensuring timely deliveries, cost savings, and improved customer satisfaction (hopp & spearman, 2011). test of research hypothesis ho: just-in-time logistics does not affect inventory levels in selected construction projects within the south-south region of nigeria. table 3: model summary for the hypothesis model r r square adjusted r square std. error of the estimate durbin watson 1 .751a .564 .550 30.49173 .425 source: (spss version 25) a. predictors: (constant), jit = just-in-time logistics b. dependent variable: il = inventory level table 4: analysis of variance (anova) for the hypothesis model sum of squares df mean square f sig. 1 regression 38459.201 1 38459.201 41.365 .000b residual 29751.858 32 929.746 total 68211.059 33 source: (spss version 25) a. dependent variable: il b. predictors: (constant), jit table 5: ordinary least square method (coefficients) for the hypothesis model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 73.072 7.045 10.372 .000 rl -.709 .110 -.751 -6.432 .000 source: (spss version 25) a. dependent variable: il american journal of business management, economics and banking volume 41 october2025 p a g e | 108 www.americanjournal.org the analysis of tables 3, 4, and 5 tests the null hypothesis (ho) that just-in-time (jit) logistics does not affect inventory levels in selected construction projects within nigeria’s south-south region. the model summary (table 3) shows a strong correlation (r = 0.751) between jit logistics and inventory levels, with 56.4% of the variance in inventory levels explained by jit logistics (r square = 0.564) and an adjusted r square of 0.550, indicating a robust model fit. the standard error of the estimate is 30.49173, and the durbin-watson statistic of 0.425 suggests positive autocorrelation. also, the anova results (table 4) demonstrate that the regression model is statistically significant (f = 41.365, p = 0.000), with a regression sum of squares (38,459.201) indicating that jit logistics accounts for a significant portion of inventory level variability, supporting the rejection of the null hypothesis. the ols coefficients (table 5) reveal that jit logistics has a significant negative effect on inventory levels (b = -0.709, beta = -0.751, t = -6.432, p = 0.000), suggesting that increased jit implementation reduces inventory holdings, with a constant term of 73.072 (t = 10.372, p = 0.000) establishing a baseline inventory level. the data strongly rejects the null hypothesis, confirming that jit logistics significantly influences inventory levels in construction projects in nigeria’s south-south region. the strong correlation (r = 0.751) and explanatory power (r square = 0.564) indicate that jit logistics enables leaner inventories by ensuring timely material deliveries, aligning with its goal of minimizing holding costs (chopra & meindl, 2016). the negative coefficient (-0.709) suggests that enhanced jit implementation reduces inventory levels, improving efficiency in construction projects (slack et al., 2019). the significant anova results (p = 0.000) reinforce that this relationship is robust, though the low durbin-watson statistic (0.425) suggests potential autocorrelation, possibly due to omitted variables like supply chain variability (gujarati & porter, 2009). these findings highlight jit’s role in optimizing inventory management, offering practical implications for construction efficiency. conclusion effective inventory control is critical to the successful implementation of jit logistics, as it enables precise material management, reduces waste, and enhances customer satisfaction. however, challenges such as complex return processes, lack of coordination, and potential inefficiencies must be addressed to fully realize jit benefits in construction projects. by implementing strategies such as advanced tracking systems, streamlined returns, supplier coordination, lean principles, and staff training, construction firms can optimize material management and improve project efficiency. references 1. alinaitwe, h. m. (2009). prioritizing lean construction barriers in developing countries: a case study of the ugandan construction industry. journal of construction in developing countries, 14(1), 15–30. 2. ameh, o. j., & osegbo, e. e. (2011). study of relationship between time overrun and productivity on construction sites. international journal of construction supply chain management, 1(1), 56– 67. 3. chopra, s., & meindl, p. (2016). supply chain management: strategy, planning, and operation (6th ed.). pearson. 4. eshofonie, f. (2008). factors affecting material procurement in nigerian construction sites. journal of engineering and applied sciences, 3(2), 189–193. american journal of business management, economics and banking volume 41 october2025 p a g e | 109 www.americanjournal.org 5. gujarati, d. n., & porter, d. c. (2009). basic econometrics (5th ed.). mcgraw-hill. 6. hopp, w. j., & spearman, m. l. (2011). factory physics (3rd ed.). waveland press. 7. kumar, s., & suresh, n. (2009). production and operations management (2nd ed.). new age international. 8. mahamid, i. (2013). contractors’ perception of risk factors affecting cost overrun in building construction projects. emirates journal for engineering research, 18(1), 57–64. 9. ogunbiyi, m., goulding, j., & oloke, d. (2014). an empirical study of the impact of lean construction techniques on nigerian construction projects. construction innovation, 14(3), 301– 320. 10. oke, a. e., ogunsemi, d. r., & adeyemi, a. y. (2017). evaluating key risk factors in public construction projects in nigeria. journal of engineering, project, and production management, 7(1), 21–29. 11. olanipekun, e. a., aje, i. o., & abiola-falemu, j. o. (2011). effects of project complexity on construction project delivery in nigeria. journal of facilities management, 9(2), 135–146. 12. oyedele, l. o., jaiyeoba, b. e., & kadiri, k. o. (2012). critical success factors in construction stakeholder management: a case study of nigeria. journal of facilities management, 10(2), 123– 142. 13. salem, o., solomon, j., genaidy, a., & luegring, m. (2005). site implementation and assessment of lean construction techniques. lean construction journal, 2(1), 1–21. 14. slack, n., brandon-jones, a., & johnston, r. (2019). operations management (9th ed.). pearson. 15. vrijhoef, r., & koskela, l. (2000). the four roles of supply chain management in construction. european journal of purchasing & supply management, 6(3–4), 169–178. 16. waters, d. (2009). supply chain management: an introduction to logistics (2nd ed.). palgrave macmillan. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 28 www.americanjournal.org problems of ensuring stability of the national economy and national currency of uzbekistan omonov akrom abdinazarovich dsc., professor tashkent state university of economics professor of the department of banking orcid id 0000-0001-7302-8627 omonov_akrom@tsue.uz akromomonov66@gmail.com a b s t r a c t k e y w o r d s the article studies the theoretical and practical aspects of ensuring the stability of the national economy and the national currency of uzbekistan. the main factors affecting the stability of the national economy and currency are studied, the level of inflation, monetary policy, the state of the foreign exchange market, foreign direct investment and the foreign trade balance are analyzed. special attention is also paid to the monetary policy of the central bank and its impact on economic stability. within the framework of the study, existing problems were identified and appropriate recommendations and conclusions were formulated on their solutions. national economy, national currency, inflation, monetary policy, foreign exchange market, investments, central bank. introduction ensuring the stability of the national economy and national currency is of strategic importance for any state and is one of the main conditions for the formation of macroeconomic stability and achieving sustained economic growth. in particular, the issues of rapid development of the uzbek economy, improving the investment climate, and ensuring a balanced foreign trade balance are directly related to the value of the national currency and its stability. in particular, global economic processes, foreign trade relations, and changes in financial markets affect the stability of the national currency rate, increasing the importance of such factors as the inflation rate, the balance of payments situation, and the effectiveness of monetary policy. therefore, in order to ensure the stability of the national currency and the economy, issues such as conducting an effective macroeconomic policy, improving the monetary policy mechanisms of the central bank, strengthening the currency market, and increasing the stability of the financial system are of urgent importance. ensuring the stability of the national economy and national currency of the republic of uzbekistan is one of the priorities of state policy. in recent years, important reforms have been carried out in this area, and relevant regulatory legal acts have been adopted. american journal of business management, economics and banking volume 34 march 2025 p a g e | 29 www.americanjournal.org in particular, decree no. pf-5177 “on preliminary measures to liberalize currency policy” adopted on september 2, 2017, includes issues such as liberalizing the foreign exchange market, determining the exchange rate of the national currency against foreign currencies based on market mechanisms, and creating a favorable environment for foreign investments1. also, resolution no. pq-3272, “on measures to further improve monetary policy” adopted on september 13, 2017, is aimed at coordinating the general economic, fiscal, and monetary policies, ensuring the balance of the state budget, and reducing the level of inflation2. according to statistical data published by the central bank of the republic of uzbekistan, in 2023, the services sector will account for 50,5% of the gross domestic product, industry for 26,8%, agriculture for 20,2%, and construction for 4,8%3. this article theoretically and practically analyzes the factors affecting the stability of the national economy and national currency of uzbekistan, identifies existing problems, and develops scientifically based proposals and recommendations for their solution. literature review the stability of the national economy and national currency is important for the economic independence and sustainable development of every country. economists and experts tried to reveal their essence by offering different approaches and definitions to these topics. the concept of the national economy means an integrated economy that includes all industries and sectors, microand macro-level economies, a functional economy, and many infrastructures in the territory of the country. according to economic definitions, the national economy encompasses the mutual relations of economic entities formed and developed on the basis of the social division of labor. according to another approach, the national economy is a system of historically formed or radically renewed, changing, and developing property and other socio-economic relations of the people living in the territory of a country or state, as well as the spheres, sectors, organizations, enterprises, territories, and regions of economic activity conditioned by them, which also have local characteristics. economists consider the effectiveness of macroeconomic policy, the stability of the investment environment, the balancing of the labor market, and the inflation rate to be the main factors for ensuring the stability of the national economy. the stability of the national currency plays an important role in the economic security and overall economic stability of the country. scientists emphasize that the depreciation of the national currency is one of the main factors threatening the security of the national economy. the depreciation of the national currency is directly related to external economic factors, the balance of exports and imports, investment flows, and the stability of domestic financial policy. therefore, the effectiveness of the monetary policy conducted by the central bank and the coordinated implementation of budget and monetary policy are noted as important factors in ensuring the stability of the national currency. according to economists, in order to achieve currency stability, it is important 1 decree no. pf-5177 of the president of the republic of uzbekistan dated september 2, 2017 "on initial measures to liberalize the currency policy". national database of legislation of the republic of uzbekistan (lex.uz): https://lex.uz/docs/-3326421 2resolution pq-3272 of the president of the republic of uzbekistan dated september 13, 2017 "on measures to further improve the monetary and credit policy". national database of legislation of the republic of uzbekistan (lex.uz): https://lex.uz/ru/docs/-3339554 3central bank of the republic of uzbekistan. statistical bulletin for the first quarter of 2023. official website of the central bank of the republic of uzbekistan (cbu.uz): https://cbu.uz/upload/medialibrary/188/xv6wegnnjw6p8loup148porukfjyges8/markaziy-bankistatistik-byulletini-2023_yil-i-chorak.pdf american journal of business management, economics and banking volume 34 march 2025 p a g e | 30 www.americanjournal.org to introduce a free currency exchange system based on market mechanisms, control inflation, and strengthen the competitive environment in the economy. the gradual liberalization of the national currency exchange rate will serve to develop the country’s foreign economic relations, create a favorable business environment for investors, and stimulate overall economic growth. the integration of the national economy into the world market is also one of the important factors affecting its stability. this process includes the entry of the national economy into the international market, the development of foreign trade relations, and its adaptation to the global economic system. in particular, the balance of exports and imports, foreign direct investment, and the balance of foreign trade are of great importance in strengthening the national economy. according to studies conducted by the world bank and the international monetary fund, the openness of the national economy to foreign markets is considered one of the important factors stimulating economic growth. therefore, many countries are taking measures to adapt the national economy to the requirements of foreign markets and increase the competitiveness of the national currency. the definitions and approaches of economists and specialists show the interdependence of various factors in ensuring the stability of the national economy and the national currency. the strength of the national economy, currency stability, and integration into the international market contribute to the overall economic stability and development of the country. the integration of the national economy into the world market is also one of the important factors affecting its stability. this process includes the entry of the national economy into the international market, the development of foreign trade relations, and its adaptation to the global economic system. in particular, the balance of exports and imports, foreign direct investment, and the balance of foreign trade are of great importance in strengthening the national economy. according to studies conducted by the world bank and the international monetary fund, the openness of the national economy to foreign markets is considered one of the important factors stimulating economic growth. therefore, many countries are taking measures to adapt the national economy to the requirements of foreign markets and increase the competitiveness of the national currency. research methodology foreign and domestic experiences in ensuring the stability of the national economy and national currency of uzbekistan were analyzed theoretically and practically. also, the article effectively used methods such as comparison, scientific-theoretical comparison, observation, comparative economic analysis, systematic approach, and logical approach. analysis and results ensuring the stability of the national economy and the national currency is one of the priorities of uzbekistan’s economic policy. some problems in the country’s economy can affect the stability of the national currency and undermine macroeconomic stability. in particular, low per capita gdp, high inflation and unemployment rates, and a negative foreign trade balance pose serious threats to economic stability. one of the main problems in the economy is the low level of gdp per capita. although the uzbek economy has shown stable growth rates in recent years, in 2024 the gross domestic product (gdp) is expected to grow by 6,5%, or 1,45 quadrillion soums, and gdp per capita will reach 39,1 million american journal of business management, economics and banking volume 34 march 2025 p a g e | 31 www.americanjournal.org soums (3,093 us dollars)4. analyses and studies show that one of the main indicators of the stability of the national economy is the stability of the state budget. in recent years, the socio-economic reforms implemented in uzbekistan have led to a sharp increase in the volume of financial resources. this, in turn, has led to the emergence of negative balances between state budget indicators, that is, between income and expenditure. the table below provides relevant information on this. table 1 information on revenues, expenditures and results of the state budget of the republic of uzbekistan for 2020-2024 (at the expense of trillion soums) years revenues expenditures budget deficit as a percentage of gdp 2020 128,4 133,6 5,2 1,4 2021 147,0 152,8 5,8 1,5 2022 171,5 182,0 10,5 2,2 2023 207,0 225,0 18,0 3,0 2024 270,4 312,9 42,5 4,0 based on the data presented in the table, it can be seen that over the past five years, state budget revenues and expenditures in uzbekistan have been steadily growing. from 2020 to 2024, revenues increased from 128,4 trillion soums to 270,4 trillion soums, and expenditures from 133.6 trillion soums to 312,9 trillion soums. however, since the growth rate of budget expenditures exceeded revenues, the budget deficit has been increasing year by year. if in 2020 the budget deficit amounted to 5,2 trillion soums, by 2024 this figure will reach 42,5 trillion soums. also, the share of the budget deficit in gdp has increased, from 1,4% in 2020 to 4,0% by 2024. this indicates a rapid growth in state spending and an increased need to finance the budget deficit. this trend reflects an increased active role of the state in the economy, an increase in large investments and social spending. however, a sharp increase in the budget deficit may affect the financial stability of the state. therefore, it is necessary to implement specific measures in the coming years to increase the efficiency of state spending, diversify sources of revenue, and balance the budget. at the same time, the high level of inflation is one of the important factors affecting the value of the national currency. although a number of measures have been taken in uzbekistan in recent years to reduce inflation, the overall increase in prices is especially noticeable in the consumer market, as a result of which the purchasing power of the population is decreasing. for example, while the inflation rate exceeded 10% in 2023, inflation in 2024 was around 9,5%5. the central bank’s monetary policy is crucial in controlling the level of inflation, and at the same time, a high share of administered prices in the inflation structure remains. this limits the effectiveness of monetary instruments in the fight against inflation. the negative balance of foreign trade is also one of the dangerous factors for the stability of the national currency. the excess of import volumes over export volumes, especially in industrial and consumer goods, creates a foreign trade imbalance, increasing the risk of devaluation of the national currency. 4 state statistics committee of the republic of uzbekistan. gdp and gdp per capita indicators in 2024. – source: https://www.gazeta.uz/oz/2025/02/07/gdp-uzbekistan/ 5 state statistics committee of the republic of uzbekistan. gdp and gdp per capita indicators in 2024. – source: https://www.gazeta.uz/oz/2025/02/07/gdp-uzbekistan/ american journal of business management, economics and banking volume 34 march 2025 p a g e | 32 www.americanjournal.org this, in turn, can lead to an increase in inflation and a decrease in incomes and purchasing power of the population. uzbekistan needs to further deepen reforms to improve foreign trade policy, diversify exports, and reduce dependence on imports. for example, in the first half of 2023, uzbekistan’s foreign trade turnover amounted to 29,2 billion us dollars, an increase of 19,4% compared to the same period in 2022. the export volume amounted to 12,1 billion dollars, and the import volume amounted to 17,0 billion dollars6. table 2 data on uzbekistan’s foreign trade turnover in 2020-2024 (billion us dollars) years export import total foreign trade turnover balance balance in % 2020 14,1 22,2 36,3 -8,1 -22,3 2021 16,6 25,5 42,1 -8,9 -21,1 2022 19,3 31,2 50,5 -11,9 -23,6 2023 24,4 38,2 62,6 -13,8 -22,0 2024 26,94 38,98 65,93 -12,03 -18,2 the table shows that in 2020-2024, uzbekistan’s foreign trade turnover (ftc) has been steadily increasing. in 2020, it amounted to $36,3 billion, and by 2024 it reached $65,93 billion. this indicates a significant increase in the volume of foreign trade. like the budget deficit, the trade balance also remains in deficit; that is, imports exceed exports. in 2020, the trade balance deficit amounted to $8,1 billion, and in 2023 this figure increased to $13,8 billion. however, in 2024, the trade deficit decreased to $12,03 billion, which may be the result of a faster growth in exports than imports. although uzbekistan is increasing its foreign trade volume year after year, the trade balance still remains in deficit. to increase the share of exports in relation to imports, it is necessary to produce value-added products, support local industry, and diversify export markets. the above-mentioned problems are the main factors affecting the stability of the national economy and currency, and their elimination should be considered one of the priorities of uzbekistan’s economic policy. in such conditions, it is possible to ensure the stability of the national economy and currency by further improving the effectiveness of the central bank’s monetary policy, deepening economic reforms, and improving the investment climate. conclusion the stability of the national economy of uzbekistan and the national currency—the soum—is one of the priorities of the country’s economic policy. in recent years, a number of reforms have been implemented to stimulate economic growth, liberalize foreign trade, and introduce market mechanisms. however, the growing state budget deficit and the negative balance of foreign trade remain two of the main factors affecting the stability of the national currency. to ensure the stability of the national economy, effective management of state expenditures, increasing revenues, and reducing dependence on external debt are of great importance. in order to reduce the budget deficit, it is necessary to increase state revenues by expanding the tax base, further improving 6 state statistics committee of the republic of uzbekistan. gdp and gdp per capita indicators in 2024. – source: https://www.gazeta.uz/oz/2025/02/07/gdp-uzbekistan american journal of business management, economics and banking volume 34 march 2025 p a g e | 33 www.americanjournal.org the business environment, and creating new production capacities. effective targeting of state investments and expanding private sector participation in infrastructure projects have a positive impact on the stability of the national economy. the negative balance of foreign trade is one of the factors directly affecting the stability of the national currency. a high share of imports increases the demand for foreign exchange, increasing the risk of devaluation of the soum. therefore, it is necessary to stimulate exports, diversify export markets, and expand the production of import-substituting products. strengthening the production of value-added products and accelerating industrialization processes will serve to protect the national currency from external influences. to ensure the stability of the national currency, it is necessary to conduct monetary policy cautiously, control inflation, and effectively manage liquidity in the banking sector. the central bank, using monetary policy tools, should prevent sharp fluctuations in the foreign exchange market and take reliable measures to stabilize the soum. in conclusion, in order to ensure the stability of the national economy and the national currency of uzbekistan, one of the urgent tasks is to pay attention to the proportionality of the state financial policy, improve the foreign trade balance, and stimulate exports, as well as adapt monetary policy to market mechanisms. such approaches serve to strengthen economic stability, protect the national currency from external influences, and ensure general economic growth. references 1. marconatto d., cruz l. b., pedrozo e. a. going beyond microfinance fuzziness. journal of cleaner production.2016;115:5–22. doi: 10.1016/j.jclepro.2015.12.070 2. panaedova g.i. microfinance in the global world: international experience and russian reality // finance and credit. 2007. no. 24 (264). s. 2-9. 6. 3. dosbaev o. dissertation work prepared on the topic "the main directions of development of microfinance organizations in uzbekistan" for obtaining the scientific degree of doctor of philosophy (phd) in economics. t.: tfi. 2023. classical definition used by the un (according to the international conference on development financing, october 15-19, 2001, un general assembly) 4. caramela, sammi (23 april 2018). "microfinance: what it is and why it matters". business news daily. retrieved 16 february 2019. 5. climate change: a sustainability effort from accounting perspective erlane k. ghani kamaruzzaman muhammad akrom a. omonov novel perspectives of geography, environment and earth sciences vol. 5, 4 march 2023, page 18-40 https://doi.org/10.9734/bpi/npgees/v5/18539d 6. akrom a. omonov, kamaruzzaman muhammad, erlane k. ghani. “factors influencing liquidity creation among commercial banks in uzbekistan: an empirical study” the journal of asian finance, economics and business(jafeb), 10권, 1호, 1-8, 2023, 10.13106/jafeb.2023.vol10.no1.0001 7. decree no. pf-5177 of the president of the republic of uzbekistan dated september 2, 2017 "on preliminary measures to liberalize the currency policy" national database of legislation of the republic of uzbekistan (lex.uz): https://lex.uz/docs/-3326421 8. resolution pq-3272 of the president of the republic of uzbekistan dated september 13, 2017 "on american journal of business management, economics and banking volume 34 march 2025 p a g e | 34 www.americanjournal.org measures to further improve the monetary and credit policy" national database of legislation of the republic of uzbekistan (lex.uz): https://lex.uz/ru/docs/-3339554 9. central bank of the republic of uzbekistan. statistical bulletin for the first quarter of 2023. official website of the central bank of the republic of uzbekistan (cbu.uz): https://cbu.uz/upload/medialibrary/188/xv6wegnnjw6p8loup148porukfjyges8/markaziy-bankistatistik-byulletini-2023_yil-i-chorak.pdf 10. state statistics committee of the republic of uzbekistan. gdp and gdp per capita indicators in 2024. – source: https://www.gazeta.uz/oz/2025/02/07/gdp-uzbekistan/ 11. european bank for reconstruction and development. economic growth forecasts of uzbekistan in 2024. – source: https://www.gazeta.uz/oz/2024/05/15/ebrd/ 12. world bank. estimates of the growth of the economy of uzbekistan in 2024. source: https://www.gazeta.uz/oz/2025/01/22/wb/ 13. international monetary fund (imf). inflation and economic growth forecasts in uzbekistan. – source: https://www.gazeta.uz/oz/2023/12/26/imf/ 14. statistics agency under the president of the republic of uzbekistan. statistics program for 2024. source: https://lex.uz/ru/docs/-6755950. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 55 www.americanjournal.org improvement of the assessment of companies' credit worthiness as a priority direction of lending their foreign trade activities marifat ibodullaeva banking and finance academy of the republic of uzbekistan a b s t r a c t k e y w o r d s improving the assessment of companies' creditworthiness is a prerequisite for increasing the level of availability of commercial bank loans provided to finance their foreign trade activities. in addition, it is one of the main methods for reducing credit risk for commercial banks. the article provides a comparative analysis of methods for assessing the creditworthiness of companies, identifying their advantages and disadvantages. also, the article develops scientific proposals aimed at improving the practice of assessing companies in banks of uzbekistan. company, commercial bank, creditworthiness, credit, liquidity, cash flow, current assets, current liabilities. introduction the development strategy of the new uzbekistan for 2022-2022 notes that further increasing the export potential of the republic and bringing the volume of exports of the republic in 2026 to 30 billion us dollars by increasing the export potential of the republic through active support for the activities of exporting enterprises, further developing the export potential of local industries based on the maximum use of existing opportunities, introducing modern standards in the production of products that meet the requirements of foreign and international markets is one of the priority areas for the accelerated development of the national economy and ensuring high growth rates [1]. the strategy “uzbekistan-2030” sets the task of accelerating reforms in the banking system, increasing the volume of the banking services market and developing competition in the sphere by bringing the annual volume of lending in the banking and financial system to 40 billion dollars, increasing the volume of bank deposits by 4 times, improving the norms and control bases by introducing internationally recognized minimum standards and requirements in banks, introducing criteria and procedures for islamic financing in at least 3 commercial formation of the legislative basis for islamic financing [2]. the above facts determine the need to increase commercial bank loans provided to exporting companies. in turn, the increase in the volume of lending to exporting companies determines the need to improve the practice of assessing their creditworthiness. american journal of business management, economics and banking volume 36 may2025 p a g e | 56 www.americanjournal.org review of literature on the topic. e. rusakova claims that the main indicators of companies’ solvency are the following: *current liquidity ratio; *coefficient of equity; *solvency recovery ratio [3]. according to v. usoskin, “commercial banks traditionally belong to the category of creditors whose loans are repaid using the net balance of current cash receipts. this value is equal to net operating profit plus depreciation charges minus accounts receivable minus the increase in inventory plus the amount of accounts payable” [4]. m. grebneva and yu. korotkova came to the conclusion that the analysis of the borrower's creditworthiness as a comprehensive study of his activities for a reasonable and reliable assessment of the probability of loan repayment involves solving the following problems: a) determining the optimal amount of financial resources provided by the creditor and methods of their repayment; b) conducting ongoing control (monitoring) by the lender over the borrower’s compliance with the requirements regarding the indicators of its financial condition; c) identification of credit risk factors and assessment of their impact on decision-making on the advisability of issuing a loan to a borrower; d) analysis of the sufficiency and reliability of the security provided by the borrower for the loan [5]. the most well-known models of corporate creditworthiness are the altman and chesser models, which include the following indicators: * ratio of own working capital to total assets; * the ratio of reinvested profit to total assets; * ratio of market value of shares to borrowed capital; * ratio of sales volume to total assets; * ratio of gross profit to total assets [6]. one of the main indicators of the creditworthiness of companies is the current liquidity ratio. however, economists express different opinions regarding the standard level of this indicator. for example, n. s. kostyuchenko indicates a range from 0.1 to 0.9 as the standard value of the current liquidity ratio for the trade sector; other authors, for example, d. a. endovitsky, without distinguishing between industries, adhere to the range from 1 to 2; and specialists from rosselkhozbank generally use a value greater than 1.3 in their work for trade enterprises [7]. n. kulikov and a. koveshnikova claim that "not all data can be verified, for example, having overdue accounts payable or receivable, organizations try not to show this and classify all debt as urgent, thereby improving their positions. some enterprises reflect "air" in reserves, and therefore, especially if these reserves are collateral, it is necessary to check their actual availability. in general, borrowers "decorate" their balance as much as possible, some, in order to increase the current liquidity ratio, transfer "short money" to the line "long-term liabilities". the inability to verify the reliability of the necessary information is another significant drawback of complex models "[8]. according to i. alimardonov, “it is necessary to improve the methodology for determining the creditworthiness of small business entities by including in the composition of financial ratios as an addition the profit margin, debt services and accounts payable turnover ratios ” [9]. american journal of business management, economics and banking volume 36 may2025 p a g e | 57 www.americanjournal.org research methodology to conduct this study, we used various methods and approaches, in particular, the coefficient method for determining the creditworthiness of companies, as well as the expert assessment method. in our analysis of the current state of creditworthiness, we used data from annual reports of domestic and foreign companies. analysis and results in many countries of the world, commercial banks use financial ratios when assessing the creditworthiness of clients. table 1 financial ratios used to determine the creditworthiness of clients in the bank "new york" (usa) [10] financial ratios normative level current liquidity ratio 2:1 quick ratio 1:1 financial leverage ratio 1:1 financial margin ratio up to 1 new york bank uses 4 financial ratios when determining the creditworthiness of clients, and each financial ratio has a standard value. commercial banks in the united states focus on the borrower's liquidity when determining the creditworthiness of their clients. indeed, the repayment of loans directly depends on the level of the borrower's current liquidity. also, when determining the creditworthiness of borrowers, the level of financial margin is of great importance. since the financial margin ratio shows the level of the borrower's debt on loans in relation to net assets (assets debt obligations). table 2 financial ratios used in large commercial banks of uzbekistan1 no. financial ratios i-class ii-class iii class 1 liquidity ratio (lr) cl > 1.5 1.5 > cl >1.0 1.0 > cl >0.5 2 coverage coefficient (kp) kp > 2.0 2.0 > kp > 1.0 1.0 > kp > 0.5 3 autonomy coefficient (ka) km > 0.6 0.6 > ka >0.3 0.3 > ka >0.15 as can be seen from the data in table 2, in large commercial banks of uzbekistan, the creditworthiness of legal entity borrowers is determined using 3 financial ratios. however, this method of assessing creditworthiness has a number of shortcomings. in particular, this method does not allow assessing the borrower's debt burden on loans received. in addition, it does not take into account the financial results of the borrower's activities. 1these financial ratios are used in practice by large banks in uzbekistan. american journal of business management, economics and banking volume 36 may2025 p a g e | 58 www.americanjournal.org figure 1. current liquidity ratio of general motors2 as can be seen from fig. 1, in 2021-2023, the current liquidity ratio of general motors remained stable at 1. the relatively high proportion of short-term accounts receivable and cash in the volume of current assets helps to ensure the stability of the current liquidity ratio. table 3 structure of current assets of general motors3 current assets years 2021 2022 2023 cash 24.4 19.2 17.8 marketable securities 9.8 12.2 6.9 current accounts receivable 41.5 46.9 50.5 inventory 15.8 12.9 15.8 other current assetsboška zhoriy aktivlar 8.5 8.8 9.0 current assets total 100,0 100,0 100,0 general motors' total current assets . figure 2. current liquidity ratio of jsc uzbekneftgaz4 2the figure was compiled by the author based on data from the annual reports of general motors . 3the table was compiled by the author based on data from the annual reports of general motors . 4the figure was compiled by the author based on data from the annual reports of uzbekneftgaz. 1.10 1.11 1.08 1.06 1.07 1.08 1.09 1.10 1.11 1.12 2021y. 2022y. 2023y. 0.8 0.5 0.5 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 2021y. 2022y. 2023y. american journal of business management, economics and banking volume 36 may2025 p a g e | 59 www.americanjournal.org as can be seen from fig. 2, according to the current liquidity ratio, uzbekneftgaz jsc is not creditworthy. this is explained by the low level of current assets in relation to current liabilities. in addition, cash has a low specific share in the volume of current assets. table 4. volume and level of funds of jsc uzbekneftgaz5 indicators 2021 2022 2023 cash, billion soums 1672 2068 790 the share of total cash in the volume of current assets, % 25.1 30.9 8.3 as can be seen from table 4, in 2021-2023, the amount of liquid cash of uzbekneftegaz jsc decreased significantly. also, the share of all cash in the volume of current liquid assets of uzbekneftegaz jsc decreased. conclusions and suggestions we have formulated the following conclusions regarding the assessment of the creditworthiness of clients of commercial banks: *the main indicators of companies' solvency are the following: current liquidity ratio; equity ratio; solvency recovery ratio; financial margin ratio; *the most well-known models of corporate creditworthiness are the altman and chesser models, which include the following indicators: the ratio of equity capital to total assets; the ratio of reinvested profit to total assets; the ratio of market value of shares to borrowed capital; the ratio of sales volume to total assets; * one of the main indicators of a company's creditworthiness is the current liquidity ratio. however, economists express different opinions regarding the standard level of this indicator ; *in the bank "new york" (usa) when determining the creditworthiness of clients, 4 financial ratios are used and each financial ratio has a standard value; *the methodology for assessing the creditworthiness of commercial banks in uzbekistan has a number of shortcomings. in particular, this methodology does not allow assessing the borrower's debt burden on loans received. in addition, it does not take into account the financial results of the borrower's activities; *in 2021-2023, the current liquidity ratio of general motors remained stable at 1; *according to the current liquidity ratio, jsc uzbekneftegaz is not creditworthy, which is explained by the low level of current assets in relation to current liabilities. in our opinion, in order to improve the methodology for assessing the creditworthiness of clients of commercial banks exporting companies, it is necessary, firstly, to include the financial margin ratio in the composition of financial ratios in order to assess the debt burden of borrowers on loans received; secondly, given the low level of provision of the economy of uzbekistan with cash, to actively use the turnover ratio of companies' accounts receivable when determining their creditworthiness; thirdly, to minimize the risk of bankruptcy of the borrower, use the altman index; fourthly, to create a database of borrower credit risks taking into account the best practices of japan. 5the table was compiled by the author based on data from the annual reports of uzbekneftgaz. american journal of business management, economics and banking volume 36 may2025 p a g e | 60 www.americanjournal.org according to experts from the asian development bank, the japanese experience of creating a credit risk database (rdb) helps reduce the level of credit risks [11]. osiyo tarakkiyot banks expertlarining fikriga kўra, japanning credit risks tugrisidagi malumotlar bazasini yaratish borasidagi tazhribasini osiening rivozhlangan mamlakatlarida қўllash kichik va ўrta business subjectlarini creditlash amalietining samaradorligini oshirish imkonini berar eddie 6. references 1. decree of the president of the republic of uzbekistan no. 60 dated january 28, 2022 "on the development strategy of the new uzbekistan for 2022-2026" // national legislation database, january 29, 2022, no. 06/22/60/0082, march 18, 2022, no. 06/22/89/0227; february 10, 2023, no. 06/23/21/0085; january 3, 2024, no. 06/24/221/0003; december 28, 2024, no. 06/24/227/1089; 01.03.2025, no. 06/25/27/0196. 2. decree of the president of the republic of uzbekistan no. up-158 dated september 11, 2023 "on the strategy "uzbekistan-2030"" // national legislation database, september 12, 2023, no. 06/23/158/0694; december 29, 2023, no. 06/23/214/0984. 3. rusakova e.v. comprehensive economic analysis of enterprise activities. – st. petersburg: piter, 2017. – p. 118. 4. usoskin v.m. modern commercial bank: management and operations. m.: lenand, 2019. p. 224. 5. grebneva m.e., korotkova yu.a. creditworthiness and its assessment//symbol of science, 2015. no. 5. p. 98-100. 6. altman e. i. financial ratios, discriminant analysis and the prediction of corporate bankruptcy//journal of finance, 1968, september. – p. 63–69.; chesser d. «predicting loan noncompliance». the journal of commercial bank lending, 1974. – august. pp. 28–38. 7. kostyuchenko n.s. analysis credit risks : textbook . – spb : itd " skifiya ", 2010.; endovitsky d. a. , bocharova i . v . analysis and grade creditworthiness borrower : educational and practical manual . – m .: knorus , 2005. 8. kulikov n.i., koveshnikova a.d. assessment of the level of enterprise creditworthiness in modern conditions//russian entrepreneurship, 2018. no. 8. p. 2233-2246. 9. alimardonov i.m. improving the methodological and practical foundations of lending to small businesses. abstract. diss. doctor of economics. – tashkent, 2018. – 62 p. 10. banking. textbook. ed. by prof. o.i. lavrushin. – m.: knorus, 2016. – p. 367. 11. asian development bank. 2014. asia sme finance monitor 2013. – manila , 2014// http://www.adb.org/ ( date accessed : 22.08.2019). 6asian development bank. 2014. asia sme finance monitor 2013. – manila , 2014// http://www.adb.org/ ( date accessed : 22.08.2019). american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 32 www.americanjournal.org possibilities of improving the system and concept of human capital development in the enterprise hamrokulov m. o. tashkent state university of economics, senior teacher of labor economics department a b s t r a c t k e y w o r d s in this article, the system of human capital development has its own socio-economic orientation. in addition to the sum of the participants and their interactions, the human capital development system includes the environment, certain integration mechanisms that develop the interaction of the participants, and the adaptation mechanism that serves as the basis for the system's stability and self-development. economic subjects, development of human capital, educational field, income dynamics, vocational training, professional skills. introduction at the same time that the competition is intensifying in the economy of all the countries of the world, the sphere of influence of human capital, which includes various characteristics, is expanding. human capital development requires a certain amount of investment. "if you invest $1 in a child's education, it will bring you up to $5 a lifetime. an additional year of education increases the average lifetime income by 9% and in some cases up to 15%. today, creating conditions for the development of human capital in the world and treating this capital as a priority in investments remain increasingly relevant. in the conditions of the rapid development of the digital economy and artificial intelligence in the world, research aimed at studying human capital from all sides in order to improve the theoretical and methodological foundations of human capital, bring out its potential and satisfy the needs that will arise in the future is currently the main going out to the place. creating jobs based on human capital in human capital research, creating more opportunities related to human capital in the daily activities of the enterprise, developing human capital mechanisms in a new way in a changing and unstable situation, and their application in real life is in the main place. various initiatives, for example, bringing the quality of human capital to a new form, bringing digitalization to the system level in enterprises, taking an innovative approach to human capital and thereby achieving long-term profitable results, are being implemented in our country. also, the level of human capital utilization is improving in textile and light industrial enterprises. "among the industries, the textile industry is the one that creates the most jobs and employs the most people. in 2023, the production of textile and sewing-knitting products will reach 94 trillion soums and has increased 4.2 times in the last 7 years. in 2023, exports in the sector will reach 3.1 billion dollars. today, more than 6,000 enterprises in the textile industry provide permanent employment to 570,000 american journal of business management, economics and banking volume 25 june 2024 p a g e | 33 www.americanjournal.org people. as in all industries, it is desirable to further deepen the necessary scientific research in order to establish the correct use of human capital in textile industry enterprises. research purpose: this research work has been done in the form of imrad model. research work contains the following chapters. abstract; key words; introduction; research purpose; literature review; methodology; results and discussion; conclusion and recommendations. literature review the transformation of human capital development includes several indicators of the use of human capital, for example, the readiness of workers for their profession, their ability to acquire up-to-date skills over time, and their health through errors that may occur in the work process. it includes such things as the full understanding of the possibility of damage, and it is the result that shows the volume and quality of production in the country's enterprises. especially in the conditions of digital transformation, opportunities for productivity in enterprises, the formation, development and improvement of the system of effective use of human capital have always been in the focus of economic sciences. famous figures of economics: a. smith, m. friedman, d. ricardo, t. schulz, t. fisher, g. becker, l. walras and other scientists, the theoretical foundations of human capital, its use and development are expressed in the works. turning to the concept of human capital development, which is very popular in modern socio-economic research, is related to the search for new scientific bases that allow understanding the development laws of economic activity. the existing rules of neoclassical economics, which are based on the study of the state of market equilibrium, are not always able to adequately study the dynamics of socio-economic systems, structures, and scientific and production cycles due to the peculiarities of scientific and technical development, changes in technological progress. the shift of the center of gravity from economic entities to systems makes it necessary to revise many approaches and directions of economic theory. it is the systematic approach that makes it possible to create a single research space for the entire set of socio-economic phenomena. allows us to see it in terms of relationships and dependencies between components . the activity in the process of formation and development of human capital of the enterprise is considered as a part of a wider picture 1. 1 fleck, michael b ; ugnich, ekaterina a. the enterprise human capital development in improving the training system. st. petersburg tom 13, izd. 1, (2020): 114. https://www.proquest.com/indexinglinkhandler/sng/au/flek,+mikhail+b/$n;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 https://www.proquest.com/indexinglinkhandler/sng/au/ugnich,+ekaterina+a/$n;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 https://www.proquest.com/indexingvolumeissuelinkhandler/2041935/st.+petersburg+state+polytechnical+university+journal.+economics/02020y01y01$232020$3b++vol.+13+$281$29/13/1;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 american journal of business management, economics and banking volume 25 june 2024 p a g e | 34 www.americanjournal.org it is known that the human capital development system is increasingly used to study open systems with a large number of heterogeneous actors with different relationships 2. this concept, widely used in biology, also allows to describe the evolution of interaction between system subjects and their relationship with the environment in which they operate in other fields of knowledge 3. the human capital development system is a special socio-economic ecosystem. to date, there is no universally accepted concept of socio-economic ecosystems. in our opinion, a more comprehensive definition is g.b. kleiner: " socio-economic ecosystem is independent economic, social or organizational subjects and their groups that interact with each other and have a set of products (results) capable of independent activity (population) , material, information, energy and other resources. socioeconomic object whose development is territorially localized over a significant period of time due to the circulation of resources. 4at the same time, special attention is paid to the simultaneous implementation of cooperation and competition processes. from the scientists of the cis countries on issues of human capital development: l.v. brick, yu.g. odegov, v.v. papyan, a.i. dobrynin, yu.m. nikiforova et al.'s researches are emphasized. to research the problems of human capital, its formation and development in uzbekistan: k.kh. abdurahmonov, b.kh. umurzakov, n.k. zokirova, n.kh. rakhimova, z.ya. khudoyberdiev, g.q. abdurahmonova, n.u. arabov, d.a. nasimov, sh.d. kudbiev and other scientists made great contributions. it is worth noting that approaches to global problems of transformation of human capital development have been widely studied among uzbek scientists only in the researches of academician k.h. abdurahmanov. f.sunha, j.heskman, l.lochner, d.masterov, r.ahmad, n.angrist, s.dzhankov, p.goldberg on important labor efficiency indicators and their selection and evaluation in the conditions of economic growth , scientists such as p. stevens, m. ueale, b. bosworth, s. collins conducted systematic research. human capital, which is considered one of the ultimate goals of socio-economic reforms and is considered an element that serves to increase labor income of the population, should be considered from several factors. methodology the system of human capital development should not be combined with the field of education or professional training. if the " field " of human capital development of the enterprise includes several unrelated organizations, then human capital development is an already defined organizational structure based on the relations of the participants in the process of operation . 2jarvi k., almpanopoulou a., ritala p. organization of knowledge ecosystem: prefigurative and partial forms // research policy. 2018. no. 47(8). p. 1523–1537. 3moore jf predators and prey: a new ecology of competition. harvard business review, 1993, may-june, p. 75–86 4kleiner g.b. ekosistema predpriyatiya v svete sistemnoy ekonomicheskoy teorii // strategic planning and enterprise development: materials of the xix all-russian symposium, moscow, april 10-11. 2018 m.: tsemi ran, 2018. s. 88– 97. ; kleiner g.b. economic ecosystem: shag and budushchee // ekonomicheskoe vozrozhdenie rossii. 2019. no. 1 (59). s. 40–45. american journal of business management, economics and banking volume 25 june 2024 p a g e | 35 www.americanjournal.org human capital development includes 5the environment, certain integration mechanisms that develop the interaction of participants, and the adaptation mechanism that serves as a basis for stability and self-development . the human capital development system began to exist as an educational field. its creation was related to the need for engineering personnel with modern knowledge and skills, able to master new technologies, materials, modern technological and testing equipment. against the background of aging and the natural departure of the most qualified personnel from production, the problem of forming a corps of engineers with the necessary qualifications has increased. in terms of the main features of the human capital development system , the following can be described: target direction; product (performance result); diversity of participants and their interaction; the state of the environment and relations with it; self-organization processes and dynamics of development. presentation of the main features of the human capital development system allows to determine its specific features, shortcomings and prospects for development . the goal of any human capital development system is to ensure that the dynamics of its income increases and the activity continues efficiently by using human resources. the human capital development system is to continuously provide the enterprise with the necessary aviation personnel, from laborer to highly qualified engineer. if the product (result) in the biological ecosystem is biomass, then in the human capital development system it is human capital. as mentioned above, human capital in the most general sense is knowledge, abilities, skills, professional skills, work experience, motivation, work potential, as a result of which a person can earn. human capital is the most important resource for the enterprise, because it plays a leading role compared to physical capital: it is human capital that drives it and, most importantly, creates innovation by creating new elements of physical capital. the need to reproduce the human capital of the enterprise, including its formation and development, is carried out by the so-called participants of the professional and educational ecosystem. analyzed human capital development system, among all its participants, can be distinguished into secondary general, secondary professional, higher and additional professional educational institutions, including enterprise divisions. human capital development system, similar to the biological one, can indicate the following levels (in accordance with the purposeful determination of the activity): 1. secondary general educational institutions form the basis, provide applicants with the next links of the system of human capital development ; 2. secondary vocational education institutions train qualified workers and employees who can continue training at a higher educational institution, as well as at a higher educational institution. these institutions provide the enterprise with highly qualified specialists. a single educational platform of heis and the enterprise has been established, which forms the basis of the enterprise's employees with specialized knowledge. the first two levels form human capital according to the needs of the enterprise. 5babkin a.v. integrirovannye promyshlennye struktury kak ekonomicheskiy sub'ekt rynka: suschnost, principy, klassifikatsiya // vestnik astrakhanskogo gosudarstvennogo teknicheskogo universiteta. series: economics. 2014. no. 4. s. 7–23. american journal of business management, economics and banking volume 25 june 2024 p a g e | 36 www.americanjournal.org " consumes " specialists trained by secondary vocational and higher educational institutions, as well as additional vocational education structures that ensure the improvement of the skills of the enterprise's employees based on the requirements of the rapidly changing environment , forms new powers in accordance with the legislation . thus, the third level ensures the development of the enterprise's human capital not only as a result of training in advanced training courses, but also as a result of the interaction of the enterprise's employees in the process of work, by enriching the human capital with professional skills that help to increase its efficiency. figure 1. human capital development systems it should be noted that within the human capital development system, the efforts of the participants are combined and create synergistic effects that can be manifested in the qualitative growth of human capital through the acquisition of skills, professional competences, experience, expansion of professional and professional potential, communication skills. the effectiveness of the interaction of the participants of the human capital development system, its self-management depends on the level of the culture of mutual cooperation. any human capital development system is the environment in which it operates. the environment for the operation of this system will be, for example, the socio-economic status of the region, the level of industrial development and the educational system. the human capital development system i may be subject to external disturbances that may change its operating conditions. this disturbing effect is a phenomenon component of the conditions for the operation of the system. traditional system of human capital development strategic recruitment skill development creating a positive work environment the system of human capital development in digital economy • use of new technologies to attract talented workers and employees to the enterprise • worker increasing the technological knowledge and skills of employees • focus on collaborative virtual work environments american journal of business management, economics and banking volume 25 june 2024 p a g e | 37 www.americanjournal.org figure 2. traditional concept of human capital development the human capital development system, it is necessary to take into account the process of its selfdevelopment. the process of self-development of society can be described on the basis of market laws in the socio-economic system. based on the above, it is necessary to improve the mechanisms of transfer of professional knowledge at the current stage of development of the human capital development system. human capital development system can be achieved only if three mandatory components are closely connected in it: specific requirements imposed by the enterprise on the knowledge and skills of specialists; adequacy of knowledge and skills formed in secondary general, secondary vocational education institutions and higher educational institutions; effective approaches to education that meet the requirements of post-industrial society. development of human capital traditional concept investments in education and training health and well-being innovation and creativity long-term perspective economic growth and sustainable development economic growth and sustainable development productivity and output knowledge and skills american journal of business management, economics and banking volume 25 june 2024 p a g e | 38 www.americanjournal.org figure 3. development of human capital concept in the context of the digital economy at the same time, if the requirements for knowledge and skills of employees are determined by the enterprise, based on these requirements, their efficiency should be ensured by educational institutions. the development of effective methods of education is the result of mutual cooperation between enterprises and educational institutions. in general, the result of the functioning of the human capital development system depends on the dynamics of complex relations between its participants in the socio-economic environment during the formation of human capital. the process of self-development of the human capital development system is based on the complexity of its structure and the strengthening of adaptation to changing external conditions based on constant updates. the following can be distinguished as the main features of the human capital development system: the purpose of the system is to continuously provide the enterprise with personnel; system product (result) human capital; system participants, they can be represented by the following groups: secondary general educational institutions, higher educational institutions, secondary special and higher educational institutions, the enterprise and its structural units; system of environmental activity the state of the social economy of the region, growth in the field of education ; the process of self-development of the system, which can be manifested in strengthening the integration of educational institutions with each other and with the enterprise itself, improving teaching methods and approaches, etc. development of human capital the concept of the digital economy digital technology knowledge and skills stimulating the culture of innovation in the digital economy flexible working conditions continuous learning and digital adaptation cyber security is your security electronic platform of personnel management making decisions based on the development of analytical knowledge and abilities integration of artificial intelligence and automation developing leadership in the digital economy american journal of business management, economics and banking volume 25 june 2024 p a g e | 39 www.americanjournal.org the model that shows the relationship between human capital and enterprise activity includes several elements . investment in human capital includes training, education, knowledge and skills that increase the effectiveness of human capital. figure 4. the concept of human capital development in the enterprise the research shows that human capital leads to higher efficiency of the enterprise. business activity can be viewed from two different perspectives; financial results and non-financial results. financial outcomes include productivity, market share, and profitability, while non-financial outcomes include customer satisfaction, innovation, process improvement, and skill development (figure 4). in general, the mechanism of the system and concept of turning human resources into human capital in enterprise activity is beneficial to both the employer and the employee. conclusion and recommendations human capital is not only knowledge, skills and abilities (skills), but also knowledge, skills and abilities that are used or will be used in the future to generate income for the enterprise. at the same time, it should be noted that there is no direct relationship between investments in education and the profitability of these investments, because the general cultural characteristics of the enterprise, economic and organizational culture, as well as the characteristics of the employee. or plays an important role in a person's ability to effectively use the knowledge gained in the course of enterprise activity. the investment approach to elements of intellectual capital requires an assessment of the effectiveness of investments in the development of these types of capital, based on a comparison of the value of investments and the income from them. accordingly, if it is very easy to calculate the amount of investment in a certain type of capital in an enterprise, then problems arise in determining the contribution of each element of intellectual capital to the growth of the enterprise's value. our proposals and recommendations, developed on the basis of research on the directions of transformation of human capital development in the digital economy in uzbekistan: first, currently, among the researchers conducting research on the subject of human capital in our country, the terms of human factor, investment for human and human capital are mixed. but these terms actually have their own subtleties of meaning, their own places of use. in research on the topic, each of the terms should be used accurately in its place, and it is advisable to continue using the term human capital in the sense of "human capital". human capital, its formation, transformation of human capital, its necessity, its necessity for the development of enterprises and society, as well as its socioeconomic essence were studied during this research work. investments in human capital: • training; • education; • learning; • acquiring skills. human capital efficiency productivity in the enterprise: • financial results; • non-financial results. american journal of business management, economics and banking volume 25 june 2024 p a g e | 40 www.americanjournal.org second, the topic of transformation of human capital development considered in our research, problems related to its formation is one of the most relevant topics for the countries that have transformed into the modern industrialized type of innovation. in addition, every person should not be indifferent to the reforms based on the development of the education and healthcare system, which is the main infrastructure of human capital in our country, in search of solutions to the problems of human capital development. taking this into account, the theoretical foundations and innovative approaches to the transformation of human capital development were researched. third, in the transformation of the innovative development of human capital, the impact of the group of investments for education, skills and experience and the group of investments for health on labor productivity and the level of enterprise profitability is based on the consideration of their direct and indirect influencing factors. was justified from the point of view. fourth, the effect of the transformation of human capital development on the practical labor activity of the enterprise depends on the training of employees, increasing the level of knowledge, professional qualifications, practical skills, and the development of work experience, based on the results of the social survey organized during the research work with the sem model. as a result of the analysis, it was determined. fifth, employment of knowledgeable and potential human resources specialists who are the most active and valuable part of human capital, formed as a logical end of the successful educational reforms implemented in the country, modern work that matches their knowledge, level and skills. it is expedient to pay great attention to the creation of these types. in short, the human capital development model includes a set of norms, coordination points, elements that provide a legal aspect, this model is about the reproduction and accumulation of human capital based on the indicators achieved in the region. is formed by quantitative and qualitative evaluation of program activities references 1. abdurakhmanov k. labour esonomiss. theory and prastise. ssientifis publishing house ivg. 2020 by gb global business ltd in london, united kingdom. 2020. 615p. 2. abdurakhmanov k. ekonomi ketenagakerjaan. teori dan praktik: buku tesk:/ k.kh.abdurakhmanov. penerbit gunadarma. jakarta, republik indonesia, 2020. 700. 3. abdurahmanova g.q. human resource management. textbook. -t.: fa "fan" publishing house of the republic of uzbekistan, 2021. 696 p. 4. umurzakov b.kh. and b. territorial methods of formation and distribution of labor resources / monograph. t.: "lesson press", 2019. -184 p 5. glazev s. yu. a new paradigm and economic science. ch. 2. // economic science of modern russia. 2016. no. 4 (75). s. 10–22. 6. fleck, michael b ; ugnich, ekaterina a. the enterprise human capital development in improving the training system. st. petersburg tom 13, izd. 1, (2020): 114. 7. jarvi k., almpanopoulou a., ritala p. organization of knowledge ecosystem: prefigurative and partial forms // research policy. 2018. no. 47(8). p. 1523–1537. 8. moore jf predators and prey: a new ecology of competition. harvard business review, 1993, mayjune, p. 75–86 https://www.proquest.com/indexinglinkhandler/sng/au/flek,+mikhail+b/$n;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 https://www.proquest.com/indexinglinkhandler/sng/au/ugnich,+ekaterina+a/$n;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 https://www.proquest.com/indexingvolumeissuelinkhandler/2041935/st.+petersburg+state+polytechnical+university+journal.+economics/02020y01y01$232020$3b++vol.+13+$281$29/13/1;jsessionid=0088d0e44928a5b4cdf41ca7fec74b83.i-0c8ad7ed282543a49 american journal of business management, economics and banking volume 25 june 2024 p a g e | 41 www.americanjournal.org 9. клейнер г.б. экосистема предприятия в свете системной экономической теории // стратегическое планирование и развитие предприятий: материалы xix всероссийского симпозиума, москва, 10–11 апр. 2018 г. м.: цэми ран, 2018. с. 88–97.; клейнер г.б. экономика экосистем: шаг в будущее // экономическое возрождение россии. 2019. № 1 (59). с. 40–45. 10. бабкин а.в. интегрированные промышленные структуры как экономический субъект рынка: сущность, принципы, классификация // вестник астраханского государственного технического университета. серия: экономика. 2014. № 4. с. 7–23. 11. m. sevilir, journal of financial intermediation 19, 483-508 (2010), doi:10.1016/j.jfi.2009.08.002. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 30 www.americanjournal.org a strategic framework for uzbekistan’s transition to a green economy: examining existing obstacles and prospective opportunities toshniyozov sardor nuriddinovich tashkent state university of economics, senior lecturer in the department of “green” economy orcid id: 0009-0001-9929-5317 sardornuriddinovich@gmail.com eldorbekov gofurbek iskandarbek ugli tashkent state university of economics, assistant lecturer in the department of “green” economy orcid id: 0009-0005-4210-8946 g.eldorbekov@tsue.uz usmonov navruzbek erkin ugli tashkent state university of economics, assistant lecturer in the department of “green” economy orcid id: 0009-0009-7871-9369 navruzbekusmanov95@gmail.com a b s t r a c t k e y w o r d s in recent years, the economy of new uzbekistan has experienced sustained growth. similar to other emerging economies, this expansion has been driven by intensive resource use and the prioritization of industrial development. however, such elevated production levels have imposed adverse environmental consequences. high pollution levels generate significant economic costs—rising healthcare expenditures, declining labor productivity, and increased rates of premature mortality. consequently, to mitigate ecological damage, optimize resource allocation, and secure genuine economic advancement, uzbekistan must transition toward a green economy. moreover, accurately estimating the respective contributions of capital and labor to national output, assessing how environmental quality affects labor efficiency, and forecasting these indicators are indispensable prerequisites for that transition. this article examines the theoretical foundations of sustainable development, reviews international experience, and identifies the obstacles and opportunities that uzbekistan faces on its path to a green economy. it green economy, ecology, sustainable development, uzbekistan, societal wellbeing, kuznets curve, efficiency, natural resources, renewable energy, energy reform, cobb-douglas function. american journal of business management, economics and banking volume 37 june2025 p a g e | 31 www.americanjournal.org also presents a current macroeconomic analysis and a forward-looking microeconomic assessment, based on which econometric models are constructed and their parameters estimated. introduction a stable environmental milieu is recognized as a crucial factor that yields economic gains for every nation. research indicates that, under conditions of high air quality, workforce productivity can increase by up to 60 percent [5]. however, according to current data, the growth of the global population and sustained economic expansion have continuously intensified the burden on the environment. over the past century, driven by increases in population and economic activity, the ocean’s acidification level has risen by nearly 1.2 times (in 2000 compared to 1900), the rate of tropical forest loss has increased sixfold, and carbon dioxide emissions have grown by 1.5 times. such climate‐ related changes, resulting from the rise in global economic activity, may lead to severe consequences in the medium‐term perspective [3]. existing information suggests that, by 2030, economic losses—primarily affecting agriculture—are projected to amount to 1 percent of gdp. nearly half of these economic losses are associated with habitat degradation due to reductions in water availability and biodiversity, which directly impact agricultural productivity. climate change also affects labor efficiency and, in uzbekistan, could reduce the labor supply by 2–5 percentage points [14]. for these reasons, on december 2, 2022, the president of the republic of uzbekistan adopted the decree “on measures to increase the effectiveness of reforms aimed at transitioning the republic of uzbekistan to a ‘green’ economy by 2030.” under this decree, and within the framework of uzbekistan’s “green” economy transition strategy, the following reforms are planned to (1) enhance the efficiency of measures ensuring “green” and inclusive economic growth, (2) expand the use of renewable energy sources, and (3) further promote resource conservation across all sectors of the economy [19]: • increase the installed capacity of renewable energy sources to 15 gw and raise their share to more than 30 percent of total electricity generation. • improve energy efficiency in the industrial sector by at least 20 percent. • reduce energy consumption per unit of gdp by 30 percent—partly through expanded use of renewable energy—and implement the changes necessary to facilitate the transition to a “green” economy. literature review in analyzing the literature, we first examined the theoretical foundations of the green economy, its underlying motivations, and its external (positive) effects. according to a group of british researchers, optimizing the use of existing resources, promoting recycling, and limiting the release of harmful substances from industrial enterprises play a central role in generating positive externalities and maximizing social welfare (that is, maximizing the benefits accruing to both consumers and producers). these authors argue that, from an economist’s perspective, sustainability is typically interpreted as constant or non-declining consumption (or profit). in contrast, environmental scientists tend to focus more on the sustainability characteristics of the biosphere rather than solely on human well-being. american journal of business management, economics and banking volume 37 june2025 p a g e | 32 www.americanjournal.org thus, even when certain policy decisions appear to economists to achieve pareto efficiency, environmental scientists may interpret those same decisions as negative externalities [10]. to assess uzbekistan’s current environmental condition, comparisons were drawn between uzbekistan and other central asian countries. in particular, annual trends in ambient pm₂.₅ concentration were analyzed to evaluate changes in air quality over time [8]. to study the relationship between environmental protection expenditures and labor productivity, we reviewed the work of russian economist anastasia vladimirovna vasilyeva, “opportunities for assessing the environmental efficiency of labor at the level of an economic activity.” according to vasilyeva, while financial resources remain the primary determinant of ensuring environmental labor efficiency in absolute terms, it is precisely investment in informational resources within the work environment that provides a comparative advantage across regions [20]. economist a. vakhabov asserts that, under conditions of resource scarcity, sustainable economic development can be achieved through “greening” and the use of renewable energy. he identifies three types of policy support for transitioning to a green economy [13]: administrative instruments. these consist of normative‐legal constraints that specify the requirements enterprises must follow to avoid environmental harm. these administrative instruments may be enforced through sanctions against individuals or firms that violate environmental regulations. for example, banning certain toxic substances in industrial processes illustrates an administrative instrument. economic instruments. these tools operate through price mechanisms and market relationships to incentivize behavioral changes among economic actors. economic instruments serve to justify, on economic grounds, the reduction of pollutant emissions by consumers and industrial firms, as well as to encourage the production and adoption of environmentally sustainable technological innovations. informational instruments. informational support aims to enhance the effectiveness of disseminating knowledge related to forming a “green” economy. measures under this category include raising public awareness of the importance of conserving water and electricity, providing training on environmental protection, and expanding educational services and other forms of environmental information dissemination. methodology to identify the population’s decisions regarding environmental issues and the psychological factors influencing them, we employed methods of analysis and synthesis as well as induction and deduction. in constructing the cobb–douglas production function, all variables were logarithmically transformed (ln). for macroeconomic analysis, in order to reflect the kuznets curve, we represented statistical data using a polynomial trend form. microsoft excel and r-studio were used for statistical analysis and econometric modeling. data visualization was accomplished using charts and tables. results general theoretical analysis although there are dozens of motives for transitioning to a green economy, we select three principal variables in order to define clear objectives during analysis. specifically, there are three primary drivers of the shift toward a green economy: american journal of business management, economics and banking volume 37 june2025 p a g e | 33 www.americanjournal.org 1. social and ecological drivers. the irreversible damage that a “brown” economy inflicts upon flora and fauna, the sudden onset of illnesses among humans, and reductions in life expectancy all demand urgent attention. 2. economic drivers. individuals inhaling polluted air over an extended period experience declining work productivity. consequently, the labor market sees the emergence of a workforce that demands better working conditions. this dynamic, in turn, results in higher labor‐hour requirements per unit of output in firms and raises unit production costs. 3. resource depletion. fossil fuels—such as oil, natural gas, and coal—exist in finite quantities and will eventually be exhausted. according to researchers at the university of queensland (australia), by 2050, reserves of natural gas and oil are projected to decline sharply, leaving coal as the sole conventional fuel source [12]. in such a scenario, any economic actor lacking access to alternative “green” energy sources will either be unable to produce goods and services or will be forced to purchase the remaining conventional fuels at elevated prices. although all of the above represent issues that must be addressed at the macroeconomic level, the decline in labor productivity often remains neglected by many economists. employers may attribute falling productivity to the workforce being “insufficiently skilled or not agile enough,” a characterization that can reduce the perceived pool of potential labor resources in the market. microeconomic analysis according to a group of chinese researchers, photovoltaic (solar) panels will become the world’s largest single source of energy by 2050, capable of supplying more than 10 trillion kilowatt-hours of electricity per year [2]. in contrast, the depletion trends for other types of energy sources are expected to continue. therefore, all else being equal, a firm’s total variable cost associated with energy inputs will rise over time. in the short run, assume that a firm’s cost function is specified as follows: 𝑇𝐶 = 𝑄2 2 + 5𝑄 + 5000 from the function, we can see that the firm’s variable costs are equal to q/2 + 5. if the firm intends to produce 100 units in one month, its cost amounts to 55 arbitrary units. now, let us examine the cost function under conditions of resource scarcity: 𝑇𝐶 = 𝑄2 + 20𝑄 + 5000 a firm previously expended 120 monetary units to produce 100 units of output. over time, variable costs tied to conventional energy inputs increase continuously. transitioning to renewable energy sources can free firms from this burden, because—in the short run—when energy resources become scarce, a firm must pay more for each additional unit of conventional energy. by contrast, using “green” energy allows the firm to convert a substantial portion of its variable energy costs into fixed costs. currently, first‐priority electricity consumers pay 1 000 uzs per kilowatt‐hour [17]. suppose a firm that wishes to expand its production must also increase its electricity consumption: to produce 1 000 units of output per day, it uses 100 kwh of electricity. in that case, the firm incurs an energy cost of 100 uzs per unit of output (since 100 kwh × 1 000 uzs/kwh = 100 000 uzs total, divided by 1 000 american journal of business management, economics and banking volume 37 june2025 p a g e | 34 www.americanjournal.org units). assuming the enterprise operates 300 days per year (excluding weekends and holidays), its annual electricity expense amounts to 30 000 000 uzs (300 days × 100 kwh/day × 1 000 uzs/kwh). if the firm attempts to raise production beyond this level, surpassing its electricity‐consumption quota, it faces higher marginal energy costs—both because of additional tariff surcharges and the law of diminishing marginal productivity, which forces the firm to pay more per unit of conventional energy. by investing in solar panels, however, the enterprise secures an energy source for approximately 25– 30 years. for example, installing a 30 kw solar‐panel system, which costs roughly usd 28 000, can generate an excess of 100–125 percent of the firm’s daily electricity needs [6]. under these conditions, the firm’s annual fixed (amortization) cost averages about 13 000 000 uzs (approximately usd 1 000), and the electricity cost per unit of output falls to roughly 70 uzs when annual output is q = 180 000 units. macroeconomic analysis to determine the country’s level of output, to specify the respective roles of capital and labor, and to forecast the production level, the cobb–douglas production function is employed. in this research, to examine the effect of environmental conditions on the production function, precisely this model was used: 𝒀 = 𝑨𝑳 𝜶𝑲𝜷 here, y denotes output (production volume), l denotes labor, k denotes capital, a denotes technological progress, α denotes the labor‐elasticity coefficient, and β denotes the capital‐elasticity coefficient. according to a un report, continued environmental damage and ongoing resource depletion are projected to inflict a $2.7 trillion loss on global gdp by 2030 [9]. in addition, air pollution—through increased concentrations of toxic substances — harms human health and reduces worker productivity [4]. to test this theory in the context of uzbekistan, an econometric model was constructed using statistical data from 2010–2023: 𝑌 = 0,00004 ∗ 𝐾0,312 ∗ 𝐿2,037 here, y denotes the volume of output; l denotes labor; k denotes capital; a denotes technological progress; α is the elasticity coefficient with respect to labor; and β is the elasticity coefficient with respect to capital. from the model, it can be observed that the sum of the labor and capital elasticity coefficients exceeds 1. therefore, uzbekistan’s economy exhibits increasing returns to scale. for example, a 2 percent increase in real wage expenditures and real investments in fixed capital raises real gdp by 5.1 percent. nearly 81 percent of this increase is attributable to expenditures on labor. american journal of business management, economics and banking volume 37 june2025 p a g e | 35 www.americanjournal.org table 1. the first result with real variables r2 p-value f-value standart error 0,987 p<0,001 (labour) p=0,12 (capital) 0,0002 0,058 from the table, it can be seen that although the p-value for the capital factor is 0.12, the p-value for the second factor—labor—is below 0.005; the f-statistic is 0.0002 and r² equals 0.987. thus, even though the statistical significance of the capital factor is greater than 0.05, the probability that our result is due to chance remains very small. there are two reasons why the p-value for capital exceeds 0.05: first, the number of years observed is limited (the the state committee of the republic of uzbekistan on statistics began publishing official average wage data only in 2017); second, in some years, the deflator used for investments in fixed capital was substantially higher than the gdp deflator. although the model above provides insight into uzbekistan’s current economic situation, the small number of observation years prevents us from optimally analyzing changes in the labor and capital shares of gdp. therefore, to fully exploit the capabilities of the cobb–douglas model, we redefine the l coefficient not by real wage expenditures but by the total number of employed persons in the economy [16]. to observe trends in the elasticity coefficients for labor and capital, we then examined statistical data from the most recent five years. table 2. cobb–douglas elasticity temporal evolution years capital elasticity coefficient labor elasticity coefficient technological progress 2010–2019 1,0388 5,6081 0,0000357 2010–2020 1,1937 4,8850 0,0000475 2010–2021 1,2673 4,7001 0,0000364 2010–2022 1,3250 4,7371 0,0000185 2010–2023 1,3253 4,7373 0,0000186 in our modeling exercise, because the number of observations was twice as large, as expected, the pvalues for all factors in every year fell below 0.05 and r2 exceeded 0.97. from the table, we see that although the capital share in gdp grew steadily over the years, the share of employed persons in gdp dropped sharply after 2019. this decline likely reflects the rising role of capital in production and ongoing industrialization. specifically, during 2010–2019, only 15.6 percent of returns to scale in production were attributable to capital, whereas for 2010–2023 this figure reached 21.8 percent. however, because the technological-progress indicator fell by 92 percent over the same period, the absolute effectiveness of capital utilization declined by 50 percent. considering that the unemployment rate has also decreased in recent years, one can conclude that the underlying problem lies in worker productivity. increases in real investment and the absolute size of the labor force, coupled with declining technological progress, suggest that labor productivity has diminished. the fact that the coefficients for lll (labor) and aaa (technological progress) both fell sharply after 2019 likely stems from the pandemic and disruptions to ecological balance. american journal of business management, economics and banking volume 37 june2025 p a g e | 36 www.americanjournal.org macroeconomic analysis: opportunities the kuznets environmental curve describes the hypothesized relationship between environmental‐ quality indicators and per-capita income. the environmental kuznets curve (ekc) framework is particularly salient for developing countries because it conceptualizes the nonlinear relationship between economic growth and environmental degradation, emphasizing the initial rise in pollution that accompanies industrialization. in early stages of development, resource‐intensive activities and lax environmental regulations tend to exacerbate air and water pollution, making the upward segment of the ekc highly relevant. as national income surpasses a critical threshold, increased public demand for environmental quality and the adoption of cleaner technologies typically lead to a decoupling of growth from pollution. for policymakers in developing economies, the ekc provides a heuristic for anticipating when investments in green technologies and stricter environmental standards will yield tangible improvements in ecological outcomes. finally, understanding the ekc dynamics allows these nations to design transitional policies—such as targeted subsidies for renewable energy and tighter emissions standards—that can shift the peak of environmental degradation to lower levels of income, thus promoting more sustainable development trajectories. in the early stages of economic development, pollutant emissions increase and environmental quality deteriorates [7]. however, once per-capita income reaches a certain threshold (which varies depending on the specific indicator), the relationship reverses [11]. as a result, at higher income levels, economic growth leads to improvements in environmental conditions. according to some media reports, although environmental quality in tashkent remains unsatisfactory, conditions in other regions have improved year by year [18]. therefore, to identify positive trends in uzbekistan, we analyzed statistical indicators from 2017–2023 and constructed a polynomial econometric model. figure 1. graph of the kuznets curve in uzbekistan (2017–2023) american journal of business management, economics and banking volume 37 june2025 p a g e | 37 www.americanjournal.org econometric model equation: y= 447,80 + 0,08282x – 0,0000035x2 here, y denotes pollutants emitted into the atmosphere, and x denotes per capita real income. table 3. coefficient estimates for the quadratic ekc model presents the estimated coefficients, standard errors, t‐values, and p‐values for the intercept, linear income term (revpercap), and quadratic income term (revpercap²) in the fitted ekc model. all three parameters are highly significant (p < 0.01), confirming an inverted‐u relationship between income and emissions. table 4. model fit & diagnostic statistics summarizes the model’s goodness‐of‐fit (r² = 0.943, adjusted r² = 0.9145), overall f‐statistic (33.08, p = 0.00325), and key diagnostic tests: durbin–watson (no autocorrelation), shapiro–wilk (residuals ≈ normal), breusch–pagan (no heteroskedasticity), and vif values (high due to quadratic specification but not invalidating significance). conclusion this study has demonstrated that uzbekistan’s rapid economic expansion, driven by intensive resource use and industrial prioritization, has engendered significant environmental costs—manifested in elevated healthcare expenditures, reduced labor productivity, and increased premature mortality. empirical evidence from the cobb–douglas production function indicates that, over 2010–2023, the elasticity of capital steadily rose (from 1.0388 to 1.3253), while the labor elasticity coefficient declined (from 5.6081 to 4.7373), pointing to increasing capital intensity but diminishing labor productivity. moreover, the observed 92 percent reduction in the technological‐progress indicator over the same period underscores a pronounced slowdown in total factor productivity growth, likely exacerbated by pandemic‐related disruptions and ecological imbalance. the inverted‐u‐shaped kuznets curve fitted for 2017–2023 confirms that pollutant emissions initially rise with per‐capita real income (coefficient = 0.08282, p < 0.01) but eventually decrease when income growth surpasses a critical threshold statistic value p-value adjusted r² 0.9145 — f-statistic (df 2, 4) 33.08 0.00325 durbin–watson dw 2.7106 0.4722 shapiro–wilk w (normality) 0.8848 0.2485 breusch–pagan bp (heteroskedasticity) 2.0536 0.3582 vif (revpercap) 63.84 — variable estimate std. error t-value p-value (intercept) 447.80 79.28 5.649 0.00484 revpercap 0.08282 0.01329 6.230 0.00338 revpercap² –0.000003496 0.0000005114 –6.836 0.00240 american journal of business management, economics and banking volume 37 june2025 p a g e | 38 www.americanjournal.org (quadratic coefficient = –0.000003496, p < 0.01). these findings collectively reveal that, although uzbekistan is approaching the turning point of environmental degradation, its current growth trajectory still imposes unsustainable ecological burdens. a transition to a green economy is therefore imperative—not only to curb the upward segment of the kuznets curve but also to restore technological progress and labor efficiency, thereby securing long‐term, inclusive economic development. based on the above analysis, the following recommendations can be made for transitioning to a green economy: 1. increase employer spending on worker health maintenance. employers should integrate comprehensive preventive care and wellness activities into a theory y management framework, positioning these health initiatives as strategic investments that trust employees’ capacity for selfdirection and enhance intrinsic motivation. providing preventive screenings and subsidizing on-site wellness programs addresses both physical and psychological dimensions of health, fostering a supportive organizational culture. regular empirical feedback—via anonymous surveys tracking absenteeism, stress, and productivity—enables iterative refinement of wellness programs to maximize their effectiveness. aligning health expenditures with theory y principles of autonomy and responsibility encourages higher engagement, reduces turnover, and mitigates productivity declines associated with poor health. embedding worker health maintenance within a data-driven, supportive environment cultivates a more committed and innovative workforce, yielding measurable gains in efficiency and performance. [1] 2. refine measurement of technological progress. conduct sector‐level total factor productivity (tfp) decompositions—using stochastic frontier analysis or malmquist indices—to disentangle gains from innovation versus efficiency. augment macro aggregates with firm‐level data on r&d expenditures, technology licensing, and patent activity, enabling a more precise assessment of how technology adoption drives output growth and offsets environmental costs. these methods will reveal which industries require targeted r&d subsidies versus those needing process‐oriented improvements. by clarifying the sources of productivity change, policymakers can tailor incentives to maximize both economic and ecological returns. 3. expand econometric models to capture regional and nonlinear dynamics. estimate panel‐data ekc specifications across uzbekistan’s regions (fixed‐ or random‐effects) to identify local turning points and understand heterogeneity in pollution‐income relationships. introduce interaction terms (e.g., income × industrial share, income × governance index) to reveal conditional effects and improve the predictive accuracy of both the kuznets curve and cobb–douglas frameworks. regional analysis will highlight provinces that need earlier interventions or different policy mixes. incorporating governance indicators also ensures that improvements in environmental quality are aligned with strengthened local institutions. 4. accelerate renewable energy deployment through competitive auctions and grid modernization. implement transparent, competitive auctions for utility‐scale solar and wind projects, coupled with clear feed‐in tariffs for distributed renewable generation (e.g., rooftop pv). simultaneously, modernize transmission infrastructure and invest in grid‐scale energy storage (battery or pumped hydro) to ensure reliability, aiming to raise renewables’ share to at least 25 percent of electricity generation by 2030. competitive auctions will lower the cost of capital by attracting american journal of business management, economics and banking volume 37 june2025 p a g e | 39 www.americanjournal.org experienced international developers. upgraded grids and storage solutions will reduce curtailment losses, ensuring that new renewable capacity can be fully utilized. 5. institute mandatory energy audits and incentivized retrofit programs. require all large industrial facilities (≥ 1 mw thermal) to conduct energy audits biennially and adopt iso 50001 energy‐ management systems. offer concessional, long‐term loans (e.g., sub-5 percent interest over ten years) for energy‐efficiency retrofits—such as combined‐cycle gas turbines in power plants and highefficiency motors in manufacturing—to achieve a 20 percent reduction in industrial energy intensity by 2030. regular audits will create a baseline for tracking progress and ensuring accountability. subsidized financing will lower barriers to modernizing equipment, yielding rapid paybacks and reducing overall emissions. references 1. jose guillermo cedeño laurent et al. 2021. associations between acute exposures to pm2.5 and carbon dioxide indoors and cognitive function in office workers. environmental research letter, 16 (9), 40–47. doi: https://doi.org/10.1088/17489326/ac1bd8. 2. historical and statistic world economy. maddison project. (2015). http://www.ggdc.net/maddison/historical_statistics/horizontal-file_03-2007.xls. 3. the world bank and the ministry of economic development and poverty reduction of the republic of uzbekistan. 2022. towards a greener economy in uzbekistan. world bank. 5-8. 4. president of the republic of uzbekistan’s decree no. 436: on measures to increase the effectiveness of reforms aimed at transitioning the republic of uzbekistan to a “green” economy by 2030. retrieved from https://lex.uz/uz/docs/-6303230 5. roger perman, yue ma, james mcgilvray and michael common. natural resource and environmental economics. third edition. edinburgh, pearson education limited, 2003. 100-105. 6. madina tursumbayeva, aset muratuly, nassiba baimatova, ferhat karaca, aiymgul kerimray, 2023. cities of central asia: new hotspots of air pollution in the world. atmospheric environment, 309, 1–15. doi: https://doi.org/10.1016/j.atmosenv.2023.119901. 7. vasilyeva, a. v. (2021). possibilities for assessing the environmental efficiency of labor at the level of a type of economic activity. economics: yesterday, today, tomorrow, 11(12a), 480– 485. https://doi.org/10.34670/ar.2021.12.87.047 8. vakhabov, a. v., khajibakiyev, sh. kh., et al. (2020). green economy: textbook. tashkent: universitet. 262 pp. 9. shahriar shafiee, erkan topal, when will fossil fuel reserves be diminished?, energy policy, volume 37, issue 1, 2009, pages 181-189, issn 0301-4215, doi: https://doi.org/10.1016/j.enpol.2008.08.016. 10. haiyan zhang, zhigang yu, chengcheng zhu, ruiqiang yang, bing yan, guibin jiang. green or not? environmental challenges from photovoltaic technology, environmental pollution,volume 320, 2023, 121066, issn 0269-7491, doi: https://doi.org/10.1016/j.envpol.2023.121066. 11. daryo.uz. (2024, april 16). starting may 1, electricity and gas prices in uzbekistan will change under tiered tariffs. retrieved from https://daryo.uz/2024/04/16/ozbekistonda-1-maydantabaqalashtirilgan-tariflar-boyicha-elektr-energiyasi-va-gaz-narxi-ozgaradi https://doi.org/10.1088/1748-9326/ac1bd8 https://doi.org/10.1088/1748-9326/ac1bd8 american journal of business management, economics and banking volume 37 june2025 p a g e | 40 www.americanjournal.org 12. jeff sykes. 30kw commercial solar: pricing, output, and returns. solar choice. url: https://www.solarchoice.net.au/commercial-solar/pricing/30kw-system-output-and-returns/ 13. midori paxton. the destruction of nature threatens the world economy. it’s time to outlaw it as a serious financial crime. undp, 2023. 14. ieva snikersproge. ecological labour or why environmentally friendly practices struggle to become mainstream,ecological economics,volume 224, 2024, doi: https://doi.org/10.1016/j.ecolecon.2024.108286. 15. jose guillermo cedeño laurent et al. 2021. associations between acute exposures to pm2.5 and carbon dioxide indoors and cognitive function in office workers. environmental research letter, 16 (9), 40–47. doi: https://doi.org/10.1088/17489326/ac1bd8. 16. the state committee of the republic of uzbekistan on statistics. (2024). average calculated wage. retrieved from https://stat.uz/uz/rasmiy-statistika/labor-market-2 17. leal ph, marques ac. the evolution of the environmental kuznets curve hypothesis assessment: a literature review under a critical analysis perspective. heliyon. 2022 nov 11;8(11):e11521. doi: 10.1016/j.heliyon.2022.e11521. pmid: 36406679; pmcid: pmc9668524. 18. soumyananda dinda, environmental kuznets curve hypothesis: a survey, ecological economics,volume 49, issue 4, 2004, pages 431-455, issn 0921-8009, doi: https://doi.org/10.1016/j.ecolecon.2004.02.011. 19. kun.uz. (2024). uzbekistan’s green cities ranking announced. retrieved from https://kun.uz/kr/86226034 20. galani, a. and galanakis, m. (2022) organizational psychology on the rise—mcgregor’s x and y theory: a systematic literature review. psychology, 13, 782-789. doi: 10.4236/psych.2022.135051 https://doi.org/10.1016/j.ecolecon.2024.108286 https://doi.org/10.1088/1748-9326/ac1bd8 https://doi.org/10.1088/1748-9326/ac1bd8 https://stat.uz/uz/rasmiy-statistika/labor-market-2 https://doi.org/10.1016/j.ecolecon.2004.02.011 https://kun.uz/kr/86226034 american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 7 www.americanjournal.org the main ways of effective assessment of monetary levers and risks in the diversification of commercial banks’ assets abdurazzakov abdualim abdujabbor ugli independent researcher at tsue a b s t r a c t k e y w o r d s this article discusses the monetary levers of asset diversification, which are important in stabilizing the risks of commercial banks. in addition, the foreign experience of effective assessment of the level of risks is studied and recommendations are given for its implementation. bank, risks, capital, loan, management, finance, networks, committee, income, variation, dispersion, model restriction. introduction any banking activity is directly related to various risks, the effective management of which is one of the most important functions of banks. the risk in any banking transaction has a different value and is covered in different ways. in the economy, it is very difficult to find risk-free operations that guarantee a predetermined financial result. risk management in banking is crucial in minimizing and preventing risks. the main goal of bank risk management is to ensure the best possible balance between the bank's profit and its liquidity and safety when managing the bank's assets and liabilities, that is, to minimize losses that may arise from risks. effective risk management helps to solve many problems that may arise in banking activities. the level of risk varies depending on various reasons and factors. for this reason, banks should conduct their activities by calculating risks based on market conditions, customer quality, demand, etc., the state of their assets and liabilities, and the supply and demand for banking services. the risk management process includes the following: anticipating risks, determining their estimated volume and impact, developing measures to prevent or minimize risks, preventing losses that may arise under their influence, etc. in this regard, commercial banks have been actively participating in the securities market. commercial banks have emerged as a method of securitizing their assets in attracting financial resources, which is practically important for them by issuing various types of securities in the financial market. asset securitization increases the efficiency of the bank’s overall economic activity by being used not only as an important tool for attracting cheap financial funds to banks, but also as an important financial technology for ensuring the liquidity of banks’ balance sheets, achieving effectiveness in risk management, and increasing the bank’s economic profit. american journal of business management, economics and banking volume 35 april 2025 p a g e | 8 www.americanjournal.org review of literature on the subject for banks, it is important not to avoid risks, but to eliminate them, to minimize them. however, there is no single approach to their essence. most scholars attribute the causes of risk to situations and factors that lead to losses. according to i. bernard and j. collier, credit risk, as a type of banking risk, is interpreted as unforeseen circumstances that may arise before the loan is repaid. the international basel committee, when assessing capital adequacy, defines credit risk as “the risk of non-fulfillment of obligations by the counterparty”. i.o. krolli defines risk as the possibility of a bank losing part of its funds, not receiving the planned income, or incurring additional expenses as a result of financial operations. carl birch defines it as “a key component of any company’s risk management philosophy is determining its risk appetite. risk appetite reflects the amount of risk that a company can accept, given its financial and operational capabilities, growth rates, and profitability prospects for stakeholders”. it is clear from the above definitions that the authors define the essence of banking risks as some kind of ambiguity, uncertainty, risk in unforeseen circumstances, the possibility of not receiving income or suffering losses without achieving the intended result. these definitions are to some extent related to banking risks, but do not describe their nature. research methodology in the article, independent approaches were formed on the basis of the scientific conclusions of the scientific research conducted by foreign and domestic scientists and the practical experiences of the authors on the research of the monetary policy of diversification of assets, which are considered important for the identification, evaluation, management, monitoring and control of risk appetite and risk profile indicators in commercial banks. tables, analytical comparisons, logical analysis, grouping and other statistical data are widely used. analysis and discussion of results one of the forces that make the economy healthy is the efficient operation of banks. this level of influence is manifested in the process of applying monetary levers in the diversification of bank assets in the economy. monetary levers in commercial bank assets are a set of measures to effectively manage credit resources of banks through monetary levers through the analysis of the demand for financial funds in the economy. through the monetary policy of the central bank, commercial banks regulate the volume of asset transactions. in the implementation of monetary policy by the central bank, the use of its traditional instruments of refinancing policy, mandatory reserve ratio, open market policy, foreign exchange policy and deposit policy are of great importance. when diversifying bank assets, monetary levers can be noted as internal and external. internal levers include lending policy, special lending standards, setting lending powers, credit limits, external levers include refinancing rate, interest policy, control of economic norms. in the monetary policy, changes in the interest rate affect the level of general interest rates in the economy, which leads to changes in aggregate demand in the economy through investment attractiveness. changes in aggregate demand, in turn, affect the level of inflation. although there is no direct relationship between the interest rate and aggregate demand, the effect of changes in the interest american journal of business management, economics and banking volume 35 april 2025 p a g e | 9 www.americanjournal.org rate is also realized through other channels. analyses of the impact of the refinancing rate of the central bank of the republic of uzbekistan on interest rates in the economy show that there is a stable relationship between them. therefore, many central banks choose the interest rate as an effective tool for transferring monetary policy to the real sector. currently, most central banks operate an interest rate corridor (irc). the essence of banking supervision is ensuring that banks have sufficient capital, complying with the economic regulatory norms established by the central bank, increasing the volume of credit funds directed to the economy and rational diversification of risk, monitoring the procedures for granting loans, the state of the loan portfolio based on the protection of interested entities. in this case, the main task of commercial banks is to comply with the adopted and economic norms, maintain sufficient capital and liquid funds, create reserves for doubtful and loss-prone assets, as well as diversify assets in order to reduce risk. the economic regulation standards include: establishing the minimum amount of regulatory capital for operating banks; capital adequacy ratio; the ratio between the bank’s capital and its liabilities; the liquidity ratio of the bank’s balance sheet; the maximum risk per borrower; the highest degree of risk associated with all “large” loans; the maximum risk per depositor; the indicator of the use of own funds in transactions with securities; consists of conducting banking operations with relevant persons. the refinancing rate, as a key indicator in the money market, is one of the important factors affecting the interest rate on credit funds in the economy. the refinancing rate is widely used to manage interest rates in the money market and stimulate economic growth processes. international experience shows that in the practice of developed and a number of developing countries, the refinancing rate is actively used as an important regulatory tool to strengthen the investment potential of the national economy in order to alleviate the negative effects of the financial and economic crisis observed in recent years. further increasing the level of capitalization of banks within the framework of the tasks set by the president and our government to further reform the banking system, ensure its stability, and strengthen their investment activities creates a financial opportunity to expand the share of long-term credit deposits in the economy. as a result, the weight of lending to the real sector of the economy in the credit policy of commercial banks is increasing year by year. as a result of rationally organized reforms, the evolutionary implementation of the tasks set for reforming and liberalizing the banking system has led to further improvement in the activities of commercial banks, ensuring their financial stability, and most importantly, increasing public confidence in the banking system. the main goal of reforming the banking system is to direct the activities of banks towards ensuring economic growth and financial stability, and in recent years, commercial banks have become a financial institution that directs financial resources to the field of financial intermediation operations. however, at the same time, there are problems with risk management in protecting the assets of commercial banks, which makes it urgent to solve them and develop a modern method of risk assessment. despite the expansion of investment flows in rapidly developing countries, factors such as transparency, liquidity, corruption, governance, taxes, and relatively high transaction costs make it difficult to form the “best” methods of asset valuation. the still low growth rate in the world economy is encouraging world investors to invest in the economies of developing countries, which are growing at two or more times the rate of developed countries. american journal of business management, economics and banking volume 35 april 2025 p a g e | 10 www.americanjournal.org risk assessment in the activities of commercial banks, first of all, involves analyzing the risk, determining its possible effects, and developing the limits of its general indicators. risks are assessed taking into account a number of economic factors. experts evaluate these indicators in a scoring system, and on this basis, the level of impact is studied, dividing risks into certain categories. in general, the source of risks in the financial market is various factors, the impact of which, in a potentially known and unknown degree, causes risky processes, events, and actions in the financial market, respectively. in other words, risks are always present in the composition of factors, arise on the basis of laws that are inherently probabilistic, and are directly or indirectly transmitted to the realities that are being formed in the financial market environment. therefore, risks are always present in the environment of the financial market, weakening its condition and the quality of its development, sometimes even worsening it. based on the analysis of the nature, content and impact of risks, it is possible to develop measures to reduce and manage them. the main methods of risk assessment in financial markets are the markowitz model, capm, apt, black-scholes option pricing model, and the var method of risk assessment based on fluctuations. in practice, banks can use any of the above risk assessment methods. although the level of financial risk determined by each method is different, they are quantitatively close to each other. the markowitz and capm methods assess and reduce risks by forming portfolios of various types of assets. the assets of commercial banks can be loans, microloans, foreign exchange, overdrafts, leasing, factoring, securities, investments, funds in other banks, accrued non-interest income, other private property of the bank, and some derivative instruments. in our case, foreign exchange funds, securities, and loans are taken as assets. one of the most widely used methods in world practice for assessing financial risks is var (value-atrisk), that is, “risk amount” or “risk rate”. the value at risk method is sometimes also called the monte carlo method. var has a number of advantages, including: • this method allows you to assess risk by the probability of their occurrence within the expected losses; • allows you to assess risk universally in different markets; • allows you to reduce individual positions to a single amount for the overall portfolio, taking into account information on the number of positions and market fluctuations during the position holding period. financial risks are assessed using the var assessment method using complex mathematical formulas. this method is currently very widely used in developed countries. various methods are used in practice to identify risks. the most commonly used of them are: a) statistical method; b) expert method; c) combined method. we consider it appropriate to present the methods used to identify risks in commercial banks in the form presented in this table (table 1). american journal of business management, economics and banking volume 35 april 2025 p a g e | 11 www.americanjournal.org table 1 methods of determining risks of diversification of bank assets statistical method expert method combined method the statistics of profits and losses in the activity are studied, the volume and period of receipt of this or that economic derivative (return) are determined, and based on this, the most probable prospects for the future period are determined. when business owners do not have access to performance indicators or when collecting and calculating figures can be costly and data is insufficient, the expert method of calculating the level of risk is used. a combination of statistics and expert methods basic elements of statistical methods variation: quantitative change of the indicator when moving from one state (period) to another dispersion: the amount of deviation of the level of an indicator for a certain period from its average level default limit: change of the indicator characteristics of all periods the essence of the statistical method is that it studies the statistics of one or another profit and loss, determines the volume of one or another economic return, and based on this, determines the most likely prospects for the future period. the main tools of the statistical method of risk calculation are as follows: • variation; • dispersion; • default limit. conclusions and suggestions the change in the quantitative assessment of a characteristic when moving from one situation to another is called variation. an example of this is the change in economic profitability from year to year. the variance is estimated by the difference between the actual level of the characteristic and its average level with a standard deviation. it should be noted that if these indicators (variance and standard deviation) are considered absolute criteria in assessing risk, then the coefficient of variation is its relative criterion. for these reasons, if there is insufficient or no data, other methods of calculating the risk level are used. one of such methods is the expert method. when using the expert method to calculate the risk level, the opinions of experienced businessmen and specialists are taken into account. in this process, it is advisable for experts to use exact figures on the probability of the occurrence of potential losses when expressing their opinions. at the same time, a combination of statistical and expert methods of determining the risk level is the most convenient option that should be used in practice. as noted above, determining the level of risk is of great importance in making investment decisions. making (choosing) an investment decision depends not only on the economic return, but also on the level of risk. the essence of this approach is that if the return on the first project (type of activity) increases, it is necessary to take into account how the return on the second project (type of activity) changes. in order to reduce the level of risk, it is necessary to select such products (services) for production, the demand for which changes in opposite directions, that is, when the demand for one product increases, american journal of business management, economics and banking volume 35 april 2025 p a g e | 12 www.americanjournal.org the demand for the second product decreases and vice versa. as we can see, it is advisable to use a combined method in assessing and identifying risks, that is, the statistical and expert methods and their main tools. it should be noted that the effectiveness of the expert method in risk assessment is determined primarily by the level of experts, so the main criteria for this method are the involvement of highly qualified experts in the risk assessment process and the use of specific models. references 1. birch carl. risk appetite: "don't bite off more than you can chew." [electronic resource]. access mode: https://www.cfin.ru/finanalysis/risk/risk_appetite.shtml 2. igor tarasov risk appetite [electronic resource]. access mode: https://upravlenieriskami.ru/риск-аппетит/ 3. lavrushin o.i. banking. textbook. m .: knorus, 2016. p. 345-346. 4. skinner k. the future of banking. translated from english. – minsk: grevtsov publisher, 2009. – p. 294 5. http://el.tfi.uz/images/bank_risklarini_norboev_bm_uz_10b32.pdf 6. http://el.tfi.uz/pdf/bank%20risklari.pdf#1 7. http://el.tfi.uz/images/xamidov_md_uz_1bc80.pdf 8. http://el.tfi.uz/images/bank_ishi_abdullayev_yo._va_boshq_2010_65b15.pdf#3 9. https://hozir.org/pars_dos/refs/39/38866/38866.pdf6.https://arm.tdpushf.uz/kitoblar/fayl_2018_2 0211007.pdf https://www.cfin.ru/finanalysis/risk/risk_appetite.shtml https://upravlenie-riskami.ru/риск-аппетит/ https://upravlenie-riskami.ru/риск-аппетит/ http://el.tfi.uz/images/bank_risklarini_norboev_bm_uz_10b32.pdf http://el.tfi.uz/pdf/bank%20risklari.pdf#1 http://el.tfi.uz/images/xamidov_md_uz_1bc80.pdf http://el.tfi.uz/images/bank_ishi_abdullayev_yo._va_boshq_2010_65b15.pdf#3 https://hozir.org/pars_dos/refs/39/38866/38866.pdf6.https:/arm.tdpushf.uz/kitoblar/fayl_2018_20211007.pdf https://hozir.org/pars_dos/refs/39/38866/38866.pdf6.https:/arm.tdpushf.uz/kitoblar/fayl_2018_20211007.pdf american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 44 www.americanjournal.org the theoretical foundations of the formation of financial mechanisms for attracting foreign investment murodov shokhijahon najmiddin ugli asia university of technology a b s t r a c t k e y w o r d s the article reveals the financial mechanisms for effectively attracting foreign investment into the economy: methods, forms, management tools and financial instruments for effectively attracting foreign investment. as a result of the research, the author’s conclusion on the financial mechanism for attracting foreign investment is formed, conclusions and recommendations are given. foreign investments, bonds, credit, deposit, tax policy, monetary policy, stock market, portfolio investments. introduction investment activity determines the basis for the successful development of the world economy, and also helps to determine the prospects for modernization and diversification of the economies of various countries of the world. the importance of foreign investment contributes to the international distribution of capital, as well as to the search for more profitable ways of making a profit from entrepreneurial activity abroad, relative to the investor’s country. in recent years, the problem of attracting investments has been in the center of constant attention of the government, various aspects of this multifaceted issue have been reflected in large-scale studies conducted by domestic and foreign scientists and specialists, mainly at the industrial level. in modern conditions, the volume of investments ensures technological growth, improves the quality and quantity of production. this is important not only for attracting investments, but also for their proper use, which, as a result, increases economic efficiency. the level of investment activity and the scope of investment activities have a significant impact on the long-term activities of business entities, their development and competitiveness. the formation of a favorable investment climate creates conditions for increasing the investment opportunities of domestic and foreign investors, allowing them to make strategic and operational investment decisions. as president sh. mirziyoyev emphasized: “our main goal is to make uzbekistan a reliable and long term partner for foreign investors. our state undertakes to develop market relations, ensure reliable protection of investor rights, further improve a favorable investment and business environment, create broader conditions for fair competition, ensure the inviolability of private property and the independence of the judicial system.”1. american journal of business management, economics and banking volume 41 october2025 p a g e | 45 www.americanjournal.org the relevance of this topic is that creating a favorable investment climate in the country, further improving financial mechanisms for effective attraction of foreign investments, studying foreign experience in this regard and, as a result, attracting external investment sources. at the same time, a positive effect is achieved in increasing the volume of investments directed to priority areas and sectors of the economy, which, in turn, will help achieve the strategic goals of the country’s socio-economic development. increasing the attractiveness of the country’s investment climate requires in-depth study of such issues as the development of optimal tax and monetary policy, as well as the development of the stock market. literature analysis in any state, the financial mechanism is an important management element for the successful implementation of financial policy and is used as a regulator of economic relations. this is a set of methods for organizing financial relations used by society in order to ensure favorable conditions for economic and social development. in the scientific literature, two conceptual approaches can be cited that express the content of the financial mechanism on a global scale. the first approach is that the financial mechanism is understood as the financial activity of enterprises themselves. the material reflection of financial relations is cash flows. the organization and procedure for their implementation of these flows are carried out in accordance with certain rules and directions that characterize the financial “technique”. this approach to defining the financial mechanism reflects the internal organization of the financial activities of enterprises. the second approach to considering the concept of “financial mechanism” is that it is understood as a set of methods and forms, ways and means of influencing the state and development of the economy. this approach reflects the external impact of financial relations, characterizes finance as a decisive factor in the influence of the management apparatus of economic entities on the economic state. currently, the following issues remain controversial: disclosure of the content and functions of the financial mechanism from the point of view of economics; the internal structure of the financial mechanism; the location of the financial mechanism in relation to the financial resources management system of economic entities; the location of the financial mechanism in connection with the financial management of the enterprise and the differentiation of their functions in the system of financial resources management of the enterprise; the existence of separate financial mechanisms (at the level of the state, region and economic entities). based on this, in the table below we consider the definitions of the concept of financial mechanism given by various economists (table 1). american journal of business management, economics and banking volume 41 october2025 p a g e | 46 www.americanjournal.org table 1 definitions of the essence of the financial mechanism no. author and resource definition of financial mechanism 1. romanovsky m.v., beloglazova g.i. finance and credit: textbook. m.: higher education, 2006. p. 575. financial mechanism is a set of types, forms of organization of financial relations, specific methods of formation and use of financial resources and methods of their quantitative determination. 2. kovalev v.v. financial analysis / v.v. kovalev. m.: finance and statistics, 2000. p. 336. financial mechanism is a system of organization, planning and use of financial resources. 3. finance: textbook “пол ред”. g.b. polyak. — 3rd ed., — m.: unity-dana, 2008. p. 703 a financial mechanism is a system of forms, types and methods of organizing financial relations established by the state. 4. ivanitsky v.p. mechanism of investment of population savings: [monograph] / v.p. ivanitsky, e.i. melnikova. chelyabinsk: susu, 2002. -p. 254. the financial mechanism is a set of forms and methods of formation and use of legal funds by business entities to ensure their functions. 5. kees van dijk, herman savenije, volume 21 of forest policy and institutions working paper, university of minnesota, fao 2009. a financing mechanism is defined as an institutional mechanism that ensures the transfer of financial resources between the provider and the beneficiary. 6. http:www.businessdictionary.co m/definition/financialmechnism.html a financial mechanism is considered to be the method or source by which financing is provided, for example, bank loans, bond or stock issuance, reserves or savings, and proceeds from sales. based on the opinions of the above scholars and the results of the research conducted, the author concludes that, financial mechanisms for attracting foreign investments are a set of methods, forms, management tools and financial instruments for effectively attracting foreign investments. research methodology. in covering this topic, along with general economic methods, special approaches to data systematization were used, namely, comparison, compilation of theoretical and practical materials, systematic analysis, abstract-logical thinking, generalization, etc. analysis and discussion of results the financial mechanism can be considered as a set of forms of organizations of financial relations, methods of attracting and using foreign investments used by the state to create favorable conditions for the economic and social development of society (figure 1). when considering the financial mechanism, it is necessary to identify its functional relationships: attracting foreign investment, its stimulation through legislation, tax holidays and investment tax credits. http://www.businessdictionary.co/ american journal of business management, economics and banking volume 41 october2025 p a g e | 47 www.americanjournal.org figure 1. financial mechanism for attracting foreign investment each link of the financial mechanism is an integral part of the whole. the financial mechanism includes a block of mobile elements: tax rates, tax benefits, depreciation rates and refinancing discount rates. these elements should be adjusted taking into account the interests of the subjects of economic relations. the combination of elements of the financial mechanism: forms, types and methods of organizing financial relations, constitutes the “general structure” of the financial mechanism, which is set in motion by determining quantitative parameters for each element. by forming the financial mechanism, the state seeks to ensure full compliance with the requirements of financial and investment policy, which is the key to the full implementation of its goals and objectives. forms of attracting foreign investments include: direct (real) foreign investments, portfolio (financial) investments and other investments (medium and long-term international loans and debt). despite the widespread tendency in scientific circles to recognize financial instruments as elements of the financial mechanism, a certain evolutionary path has been taken in the interpretation of this concept, but a unified view of the essence of financial instruments has not yet been developed. thus, initially a rather simplified definition was developed, according to which three main categories of financial instruments were distinguished: cash, credit instruments (bonds, loans, deposits) and methods of participation in the authorized capital (stocks, shares). in world practice, there are various methods of attracting foreign investment, the most popular of which are: establishing foreign enterprises whose assets are 100% owned by foreign investors; organizing the sale and purchase of financial assets; establishing special economic zones; establishing consortiums, concessions; establishing joint ventures through joint participation, as well as establishing subsidiaries and branches of large foreign companies and firms, announcing tenders, etc. in order to effectively attract foreign investments, management (influence) tools, which are an integral component of financial mechanisms, are also important, including tax and monetary policy and the level of development of the stock market. estimating the impact of the tax system on the development of the national economy is a complex issue. in addition, it should be remembered that there are several main directions of the fiscal system. for example, the system of temporary effects, special tax regimes, rationalization of tax rates and the system of tax privileges. american journal of business management, economics and banking volume 41 october2025 p a g e | 48 www.americanjournal.org the tax code of the republic of uzbekistan provides for the application of special tax benefits in accordance with the procedure established by it to enterprises established with direct foreign investment and specializing in the production of products (rendering services) in sectors of the economy according to the list approved by legislation. in particular, chapter 67, article 471 of the tax code of the republic of uzbekistan sets out the conditions for taxation of legal entities with direct private foreign investments4. according to the legislation of uzbekistan, state support for investment activities is also carried out on the basis of presidential decrees. in general, after a number of reforms in the tax sphere in uzbekistan, the tax burden on business entities has been relatively eased. for example, corporate and individual income tax is levied at a single fixed rate (15 percent for legal entities and 12 percent for individuals); the income tax rate on dividends is 5 percent; the value added tax (vat) rate is 12 percent, and property tax is 1.5 percent. the government of uzbekistan annually makes adjustments to the rates of collection of certain taxes, fees and duties. the government’s influence on the intensity of investment processes in the economy cannot be imagined without monetary regulation, which is a method of implementing monetary policy in society. monetary policy is a set of measures implemented by the state through specialized financial and credit institutions and aimed at achieving a predetermined positive economic and social result. this means that monetary regulation, as a practical component of the policy, should be aimed at achieving the same goals. monetary regulation of the economy should contribute to the activation of investment processes in the real sector of the national economy, stimulate the savings policy of residents and non-residents of the republic of uzbekistan in the national currency, and strengthen the country’s banking and financial system (figure 2). figure 2. issuance and regulatory cash flows of the central bank regarding the rules of mandatory reserves, at present, reserve requirements do not encourage the banking system to form long-term resources that are the basis of investment assets. required reserves are funds that commercial banks are required to deposit on a separate account opened with the central bank. by changing the mandatory reserve requirements, the central bank affects the lending activities of commercial banks and interest rates. from july 1, 2024, deposits of legal entities and individuals in the national currency will be set at 4 percent, and deposits of legal entities and individuals in foreign currency at 14 percent. monetary policy is conducted by the central bank, and the main objective of this type of policy is to achieve price stability. this policy is implemented through money and interest rates (for example, the key rate). the central bank can conduct monetary policy in 4 different modes (inflation targeting mode, monetary targeting, exchange rate targeting, and hybrid mode). in accordance with the presidential decree no. pd-5877 “on improving monetary policy through a phased transition to an inflation targeting regime” dated november 18, 2019 and the law “on the american journal of business management, economics and banking volume 41 october2025 p a g e | 49 www.americanjournal.org central bank of the republic of uzbekistan” adopted in a new edition no. lru-582 dated november 11, 2019, price stability was established as the main objective of the national monetary policy, and the central bank began the transition to an inflation targeting regime. in addition, the decree of the president of the republic of uzbekistan no. pd-5571 dated september 2, 2017 “on priority measures to liberalize currency policy” is aimed, first of all, at radically reforming the current currency regulation system, liberalizing currency policy, and creating equal conditions for all business entities in carrying out foreign trade activities. this decree definitively resolved the issue of currency conversion for domestic and foreign investors. let us dwell on the activities of the securities market as a means of managing foreign investments. the securities market is one of the important components of any modern civilized economy. therefore, its regulation is of great importance for the entire national economic complex due to its impact on the total mass of investment resources in society. in our opinion, the system of securities market regulation should help solve the following tasks: to form an effective mechanism for attracting private investments to the corporate sector of the economy (primarily, attracting state funds for these purposes); to form a mechanism for covering the state budget deficit without inflation using securities market instruments; to create an effective mechanism for attracting state funds to investment programs using the securities market; to ensure the rights of domestic participants in global financial flows, while promoting the integration of the domestic securities market into world markets; creation of conditions for the emergence of “effective owner” in the domestic economy, etc. in conclusion, the financial mechanism of attracting foreign investments is closely related to the financial and investment policy of the state. conclusion the following conclusions and recommendations can be made based on the results of the above mentioned research on the financial mechanisms of effectively attracting foreign investments to the national economy: first, based on the experience of most developed and developing countries, use the "national regime" of regulating capital flows; secondly, it is desirable to develop a fiscal policy of promoting foreign investments specific to developing countries; thirdly, further improvement of the legal framework for attracting foreign investments within the framework of the requirements of the international trade organization; fourth, to use the experiences of the chinese state in the establishment and effective operation of special economic zones in attracting foreign investment; fifth, the transition from quantitative indicators to qualitative indicators in attracting foreign direct investment; sixth, to create an electronic platform of a truthful and transparent database for foreign investors about the investment potential of the country and its regions, etc. references 1. speech of the president of the republic of uzbekistan shavkat mirziyoyev at the third tashkent international investment forum. 02.05.2024. https://president.uz/uz/lists/view/7194 2. “tax code” of the republic of uzbekistan dated december 30, 2019. https://lex.uz/docs/4674902 3. romanovsky m.v., beloglazova g.i. finance and credit: textbook. m.: higher education, 2006. – page 575. american journal of business management, economics and banking volume 41 october2025 p a g e | 50 www.americanjournal.org 4. kovalev v.v. financial analysis / v.v. kovalev. m.: finance and statistics, 2000. – page 336. 5. finance: textbook. ed. g.b. polyak. 3rd ed., m.: unity-dana, 2008. – page 703. 6. ivanitsky v.p. mechanism of investment of population savings: [monograph] / v.p. ivanitsky, e.i. melnikova. chelyabinsk: susu, 2002. – page 254. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 83 www.americanjournal.org development of the green economy in the republic of uzbekistan u. k. mukhtarova alfraganus university, senior lecturer, department of “economics a b s t r a c t k e y w o r d s sustainable development is a concept that offers an integrated approach to economic growth, social progress, and environmental protection. it recognizes that economic growth must be sustainable and should not come at the expense of the environment and society. the green economy is one of the key instruments for achieving sustainable development. this article examines the development of the green economy in the republic of uzbekistan, analyzes international data on the advancement of energysaving technologies and the reduction of greenhouse gas emissions, and presents the results of research on modern trends in green financing for implementing projects aimed at introducing resource-saving technologies, creating new capacities through renewable energy sources, and developing socially oriented investment. green economy, green financing, sustainable development, renewable energy sources, resource-saving technologies, climate change. introduction climate change and its impact on the global economy have become some of the most significant issues of the modern world, exerting both economic and environmental effects on countries. in recent decades, the world has faced growing environmental challenges, including global warming, the degradation of natural resources, and widespread environmental pollution. these problems require immediate action and have led to increased attention to new concepts of economic development that combine economic growth with environmental protection. against this background, the concept of a “green economy” comes to the forefront, offering approaches that help integrate the sustainable use of resources and the reduction of the carbon footprint with economic growth. each year, human activity releases around 20 billion tons of carbon dioxide into the atmosphere and produces more than 300 million tons of plastic waste. global emissions on earth continue to increase. according to the world health organization, about 99 percent of the world’s population breathes air whose quality parameters exceed permissible limits, posing a serious threat to human health. tens of millions of annual deaths worldwide are attributed to environmental causes, including air pollution. harmful levels of fine particulate matter and nitrogen dioxide are mainly caused by the burning of fossil fuels. american journal of business management, economics and banking volume 41 october2025 p a g e | 84 www.americanjournal.org the planet is experiencing a global energy crisis, a cost-of-living crisis, a food crisis, wars, drought, and hunger. extreme weather events induced by climate change — such as tropical cyclones, desertification, and sea-level rise — cause enormous damage to countries. increasing natural disasters are the result of rising greenhouse gas emissions. climate change issues negatively affect environmental and food security and the eradication of poverty. based on this, uzbekistan pays great attention to reducing the impact of climate change and adapting to it, accelerating measures for the transition to a green economy, and promoting a green and inclusive model of economic growth. the year 2025 has been declared the “year of environmental protection and the green economy” in uzbekistan. the green economy is an important direction aimed at protecting the environment and ensuring balanced economic development. the main task of the transition to a green economy is to foster a responsible human attitude toward earth’s resources. society faces the goal of finding a reasonable compromise between improving well-being and preserving natural resources. one of the principles of the green economy is state support for sustainable production and consumption, as well as the introduction of low-carbon and resource-saving technologies. the development of the green economy is one of the key elements of a sustainable economic growth strategy in our era. in the face of rapidly changing environmental conditions, countries around the world, including uzbekistan, recognize the need to move toward new models of economic development that combine the use of renewable energy sources with innovative, environmentally friendly technologies. such a transition allows not only to reduce carbon emissions and improve the ecological situation but also to ensure long-term economic stability, creating new opportunities for investment and strengthening the domestic economy. literature review the term “green economy” was first introduced into scientific circulation by economists d. pearce, a. markandya, and e. barbier in their 1989 report to the uk government titled “blueprint for a green economy.” this document presented recommendations for changing state policy and economic models to address climate change issues in the context of industrialization. these recommendations covered topics such as national well-being, rural life, water use, waste reduction, lowering carbon dioxide levels, and transportation. according to scholars, there is no single universally accepted definition of the term “green economy” in economic literature. vakhabov a.v. and khajibakiev sh.kh., discussing the priorities and necessity of the transition to a green economy, note that in some sources, the green economy is described as new sectors of the economy that contribute to improving environmental protection, while other researchers emphasize that the green economy studies new technologies and ecosystems that benefit nature. another group of scholars believes that the green economy represents a new stage of development aimed at creating environmentally friendly products. according to rakhmanov sh.i., one of the main directions for the development of the green economy in the republic of uzbekistan is the creation of a legislative framework in this area. v.i. vernadsky asserted that humanity, in the course of its development, has become a powerful “geological force,” transforming the planet through thought and labor. therefore, in order to survive, it must take responsibility for the development of the biosphere as it transforms into the noosphere, which requires american journal of business management, economics and banking volume 41 october2025 p a g e | 85 www.americanjournal.org a new social organization and an ecological and humanistic ethic. thus, today there are several approaches to understanding the essence of the green economy. research methodology the research applies theoretical and practical scientific methods, including comparative analysis, generalization, horizontal and vertical analysis, synthesis, induction, and deduction. statistical data from international financial institutions and organizations, as well as data from the agency of statistics under the president of the republic of uzbekistan, were used in preparing the article. analysis and discussion of the results on november 20, president shavkat mirziyoyev announced that 2025 would be the year of environmental protection and the green economy in uzbekistan. the head of state emphasized that the negative effects of climate change are now being felt not only in uzbekistan but also around the world. air and water pollution, soil erosion, desertification, and the uncontrolled use of fossil fuels lead to global warming, an increase in natural disasters, and serious harm to the environment and human health. like other central asian countries, uzbekistan is vulnerable to the effects of climate change. this problem threatens natural capital and the agricultural sector, including land and water resources, and increases the risk of natural disasters. according to the global nd-gain index comparing countries’ adaptation levels to climate change, uzbekistan ranked 65th out of 187 countries in 2022. about 70% of central asia’s development challenges are related to water scarcity. according to the world resources institute, uzbekistan is among the 25 countries most exposed to water stress, and climate change is worsening the problem. as a result of global climate change, the area of glaciers in central asia has decreased by about 30% over the past 50–60 years. estimates suggest that glacier volume will decrease by 50% with a 2°c rise in temperature and by 78% with a 4°c rise. by 2050, water resources in the syr darya basin are expected to decline by 15%. uzbekistan’s economy ranks fifth in the world in terms of greenhouse gas emission intensity, generating nearly half of all emissions from energy use. electricity demand in uzbekistan totals about 69 billion kwh, of which nearly 90% is produced by burning gas and coal, while only 10% comes from renewable energy sources. in recent years, uzbekistan has adopted and implemented several strategic documents, including the presidential decree approving the “national strategy for the transition to a green economy for 2019– 2030” and the establishment of the “interdepartmental council on the green economy”. the country launched the nationwide “green space” initiative and began implementing the “regional climate strategy” jointly with neighboring states. furthermore, the university of central asia was established in tashkent to specialize in climate and environmental studies. laws such as “on the use of renewable energy sources”, “on hydrometeorological activities”, and the “environmental protection concept of the republic of uzbekistan until 2030” have been adopted. in 2023–2024, a “green energy certification system” was introduced to monitor the quality of products and processes using environmentally friendly technologies and renewable energy sources. the development of the green economy in uzbekistan aims to achieve sustainable economic growth through the introduction of low-carbon, resource-saving technologies and the improvement of energy efficiency across all sectors of the economy. the strategy targets, by 2030 (compared to 2010 levels): american journal of business management, economics and banking volume 41 october2025 p a g e | 86 www.americanjournal.org increasing the share of renewable energy sources to 30–40%; reducing carbon emissions by 10%; modernizing thermal power plants to lower natural gas consumption; shifting urban public transport to environmentally friendly fuel; increasing household waste recycling to 65%; improving water use efficiency and introducing water-saving irrigation technologies; encouraging climate-smart agriculture and organic farming; attracting investments in green technologies through public-private partnerships and international cooperation; reducing greenhouse gas emissions by 35%. uzbekistan has significant potential for renewable energy development, particularly solar and wind energy. as one of the sunniest countries in central asia, uzbekistan has unique opportunities for solar energy use. in 2021, a 100 mw solar power plant was commissioned in navoi region, and in 2024, new wind energy projects were announced. in the coming years, 28 large solar and wind power plants with a total capacity of 8 gw are expected to be launched. conclusions and suggestions uzbekistan is consistently implementing a state policy aimed at developing the green economy amid growing shortages of key natural resources and increasing demand driven by industrial and population growth. the main directions for the development of the green economy in the republic of uzbekistan include: 1. implementation of clean technologies to reduce the negative environmental impact of production and consumption while improving resource efficiency. 2. creation of a legislative framework for the green economy as a key element of the transition to sustainable development and rational use of natural resources. currently, uzbekistan lacks a comprehensive legal framework in this area. 3. promotion of green investments — allocating capital to projects, companies, or technologies aimed at reducing environmental impact and developing a sustainable economy. according to expert estimates, by 2030, approximately 93 trillion usd will be allocated globally for green projects, requiring extensive use of appropriate financial instruments. 4. efficient management of natural resources — sustainable development requires rational use of natural resources, minimizing emissions and waste, and preserving the environment. 5. international integration — since sustainable development issues are global, it is necessary to strengthen cooperation and integration among countries to address economic, environmental, and social challenges. 6. social protection and equity — sustainable development implies taking into account the interests of all social groups by ensuring access to a clean environment, equal opportunities, fair income distribution, and poverty reduction. american journal of business management, economics and banking volume 41 october2025 p a g e | 87 www.americanjournal.org references 1. resolution of the president of the republic of uzbekistan no. 841 of october 20, 2018, "on measures to implement national goals and objectives in the field of sustainable development until 2030" 2. resolution of the president of the republic of uzbekistan "on approval of the strategy for the transition of the republic of uzbekistan to a green economy for the period 2019-2030" of october 4, 2019, no. pp-4477 3. state committee on ecology of the republic of uzbekistan, green economy development program until 2030. 4. karimov a.b. green economy development prospects in uzbekistan, economy and education. 2023. no. 1. pp. 103-107. 5. khasanova, d.sh. renewable energy as the basis for green growth, energy in central asia. — 2022. — no. 3. — p. 55–60. 6. state statistics committee of the republic of uzbekistan. environmental statistical yearbook. — tashkent: goskomstat, 2023. — 164 7. ministry of ecology, environmental protection and climate change of the republic of uzbekistan. national report on the state of the environment. — tashkent: meosk, 2022. — 95 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 33 www.americanjournal.org formalization and organizational agility in quick service restaurants in port harcourt, rivers state jonah, charles tambari department of management, faculty of management sciences, university of port harcourt, choba nzei, justina akhere department of vocational education, (home economics unit), delta state university, abraka e-mail for correspondence: charles.jonah@uniport.edu.ng a b s t r a c t k e y w o r d s this study investigates the interplay between formalization and organizational agility, focusing on how varying levels of formalization impact agility across different sectors. the research aims to address the challenges organizations face in balancing formalization with the need for agility in fast-paced environments. a cross-sectional research design was adopted, with data collected from staff members of three quick service restaurants (qsrs) in port harcourt. the sample size was determined using taro yamane’s formula, and data were gathered through structured questionnaires. reliability was assessed using cronbach alpha, and partial least squares structural equation modeling (pls-sem) was employed to test the hypotheses. the findings reveal a positive relationship between formalization and organizational agility measures (sense, decision-making and act agility respectively), suggesting that appropriate formalization levels can enhance agility rather than inhibit it. this relationship highlights the potential of leveraging formalization as a supportive framework for agile practices. the study recommends that organizations should strike a balance between formalized processes and the need for flexibility to foster an environment that supports rapid decision-making and innovation. the findings contribute to the understanding of how formalization can be aligned with agile methodologies to improve organizational performance and responsiveness in dynamic business environments. agility, formalization, decision-making, dynamic capability. american journal of business management, economics and banking volume 28 september 2024 p a g e | 34 www.americanjournal.org introduction organizational agility enables organizations to adapt and respond very fast to changes in the internal and external business environments. this concept encompasses the ability to seize new opportunities, address challenges, and make swift, effective decisions. the quest by organisations to achieve organizational agility is traceable to the rapid technological advancements, shifting market dynamics, which has engendered competitiveness in the marketplace. agile organizations can pivot quickly, streamline processes, and foster a culture of innovation, ultimately enhancing efficiency and employee satisfaction while positioning themselves for growth in volatile conditions (truebiz learning info solutions llp, 2024). the interplay between organizational agility and formalization is crucial to understanding how organizations can optimize their structures for better responsiveness. formalization describes the extent to which rules, procedures, and policies govern organizational activities. while some degree of formalization is necessary for consistency and predictability, excessive formalization can lead to rigidity, inhibiting an organization's ability to adapt quickly. therefore, it is essential to explore how organizations can balance formalized processes with the need for agility to thrive in a fast-paced business landscape (agarwal, 1983). formalization serves as a framework that dictates how tasks are performed within an organization. it plays a significant role in ensuring clarity of roles and responsibilities, thereby promoting efficiency. however, the challenge lies in finding the right level of formalization that supports rather than stifles agility. previous studies have indicated that organizations often experience a paradox where reducing certain forms of formalization can lead to increased enabling formalization in other areas (bachmann et al., 2020). this nuanced understanding highlights the importance of adopting a flexible approach to formalization that aligns with agile practices. despite the growing body of research on organizational agility and formalization, significant gaps remain in understanding how varying levels of formalization impact specific dimensions of agility across different sectors. most existing literature tends to focus on theoretical frameworks without empirical validation or concentrates on singular industries. this lack of comprehensive insights limits organizations' ability to develop effective strategies that integrate both agility and formalization across diverse contexts. addressing this gap is essential for equipping organizations with the knowledge necessary to navigate the complexities of modern business environments successfully. statement of the problem the problem of insufficient organizational agility has become increasingly pronounced in today’s fastpaced and unpredictable business environment. symptoms of this issue manifest in various forms, including slow decision-making processes, a lack of responsiveness to market changes, and the prevalence of organizational silos that hinder collaboration across departments (apqc, 2024). these symptoms often lead to conflicting goals among teams, resulting in wasted resources and inefficiencies that can stifle innovation and impede overall organizational performance (oktay, 2020). if left unaddressed, the consequence of low agility can be severe; organizations may struggle to compete effectively, ultimately risking their market position and long-term viability. the manifestation of these symptoms can be traced back to rigid organizational structures and bureaucratic processes that inhibit flexibility. for instance, excessive formalization can create barriers to communication and collaboration, leading teams to focus on individual objectives rather than shared american journal of business management, economics and banking volume 28 september 2024 p a g e | 35 www.americanjournal.org organizational goals (mohamed rahim et al., 2024). this misalignment not only reduces the effectiveness of projects but also fosters a culture of blame rather than accountability. consequently, organizations may find themselves unable to adapt quickly to new opportunities or threats, resulting in lost market share and diminished customer satisfaction. formalization can play a pivotal role in addressing these challenges by providing a structured framework that enhances clarity while still allowing for flexibility. by implementing enabling formalization—where rules and procedures support agile practices—organizations can create an environment that encourages rapid decision-making and cross-functional collaboration (bachmann et al., 2020). this approach helps to streamline processes while ensuring that teams remain aligned with strategic objectives. the point of departure lies in recognizing that formalization does not inherently conflict with agility; rather, it can be leveraged to foster an agile culture that promotes responsiveness and innovation. addressing these issues identified above is crucial for organizations seeking to develop effective strategies that harmonize formalized processes with agile methodologies, thereby enhancing their ability to navigate the complexities of modern business environments successfully. aim of the study the aim of this study is; i. to examine the relationship between formalization and sense agility ii. to evaluate the relationship between formalization and decision-making agility iii. to determine the relationship between formalization and act agility hypotheses h01: there is no significant relationship between formalization and sense agility h02: there is no significant relationship between formalization and decision-making agility h03: there is no significant relationship between formalization and act agility literature review theoretical foundations dynamic capabilities theory: the theory that best suits the study of the relationship between organizational formalization and organizational agility is the dynamic capabilities theory. this theory is of that organizations must develop specific capabilities to adapt, integrate, and build internal and external competencies to address business challenges in environments that are rapidly changing (teece, 2007). in the context of organizational agility, dynamic capabilities enable organizations to sense opportunities and threats, seize them, and transform their operations accordingly. this need to adapt is crucial in environments characterized by uncertainty and rapid change, where traditional formalization structures may hinder responsiveness. dynamic capabilities theory is particularly relevant when examining how formalization impacts agility. high levels of formalization can create rigid structures that limit an organization's ability to respond quickly to market changes. however, organizations that cultivate dynamic capabilities can use their formalized processes as a foundation for agility rather than a constraint. for instance, by fostering a culture of continuous learning and innovation, organizations can maintain necessary formal structures while enhancing their ability to pivot in response to new challenges (eisenhardt & martin, 2000). this american journal of business management, economics and banking volume 28 september 2024 p a g e | 36 www.americanjournal.org balance allows organizations to leverage their formalization for strategic advantage while remaining agile. moreover, empirical studies have demonstrated the applicability of dynamic capabilities theory in various sectors. for example, research has shown that organizations with robust dynamic capabilities can effectively utilize big data analytics to enhance their agility and innovation performance (kamble et al., 2024). this finding underscores the importance of integrating technological advancements into organizational processes while maintaining flexibility. the ability to adapt these processes in response to external pressures is a hallmark of dynamic capabilities and is essential for achieving agility by organizations in today's fast-paced business landscape. dynamic capabilities theory provides a comprehensive framework for understanding the interplay between organizational formalization and agility. it emphasizes the need for organizations to develop adaptive capabilities that allow them to navigate complex environments successfully. by focusing on dynamic capabilities, researchers can better understand how formalization can be structured to support rather than hinder agility, ultimately leading to improved organizational performance. conceptual review formalization organizational formalization is a critical concept in management that refers to the extent to which policies, rules, and procedures, are documented and enforced within an organization. it establishes a structured framework that guides employee behavior and decision-making, ensuring consistency and predictability in operations. formalization can take various forms, including written policies, job descriptions, and standard operating procedures. this structured approach is essential for organizations seeking to achieve specific goals while maintaining efficiency and accountability among their members (aihr, 2023). the impact of formalization on organizational performance has been the subject of extensive research. studies indicate that a higher degree of formalization can lead to improved operational performance by reducing role ambiguity and conflict among employees. for instance, formalized rules and procedures provide clear expectations, which can enhance coordination and reduce misunderstandings in task execution (skorková, 2020). moreover, formalization facilitates better communication within the organization, allowing for a smoother flow of information between departments and improving overall organizational effectiveness (roderic uv, 2018). however, it is important to note that excessive formalization may stifle creativity and innovation by imposing rigid structures that limit employee autonomy. furthermore, formalization plays a significant role in fostering organizational commitment among employees. when employees understand their roles and responsibilities through clearly defined rules and procedures, they will tend to have a sense of belonging as well as being more commited to the organization. this relationship is further moderated by factors such as self-monitoring, where employees who actively engage in self-assessment are better able to align their behaviors with organizational expectations. thus, the interplay between formalization and individual commitment underscores the importance of balancing structure with flexibility to promote both employee satisfaction and organizational performance. american journal of business management, economics and banking volume 28 september 2024 p a g e | 37 www.americanjournal.org organizational agility organizational agility has emerged as a critical concept in contemporary business literature, reflecting the need for organizations to adapt swiftly to dynamic market conditions. defined as the ability to respond rapidly and effectively to changes, organizational agility encompasses various dimensions, including strategic, operational, and individual levels (gong & ribiere, 2023). the fragmentation of existing literature highlights a lack of consensus on the fundamental characteristics and mechanisms that underpin agility in organizations. recent studies have identified key factors such as culture, technology, and workforce engagement as essential components that facilitate organizational agility (claus, 2021; walter, 2021). this literature review aims to synthesize these findings and explore the implications of organizational agility for both theory and practice. extant literature reveals that organizational agility is closely linked to an organization's ability to being innovative in order to maintain competitive advantage in turbulent environments (matthiae & richter, 2021). fostering organizational agility is essential for navigating the complexities of today's business landscape. the literature indicates that organizations must develop competencies that allow them to sense changes in their environment and respond proactively (kalaignanam et al., 2021). as businesses continue to face unprecedented challenges, understanding the multidimensional nature of organizational agility will be crucial for sustaining performance and achieving long-term success. sense agility: organizational agility is increasingly recognized as a critical capability for firms operating in dynamic environments. central to this concept is sense agility, which refers to an organization’s ability to quickly perceive and interpret changes in its environment, thereby enabling timely and effective responses. this capability not only enhances an organization's adaptability but also supports its strategic decision-making processes. research indicates that organizations with strong sense agility can better navigate uncertainties and capitalize on emerging opportunities, ultimately leading to improved performance outcomes (adeniji et al., 2024). the interplay between sense agility and other organizational capabilities is also significant. for instance, leadership plays a crucial role in fostering an environment conducive to agile practices. effective leaders encourage a culture of continuous learning and responsiveness, which enhances the organization’s ability to sense changes and adapt accordingly. studies have shown that organizations that prioritize leadership development alongside agility initiatives tend to achieve greater success in implementing agile frameworks (alnuaimi et al., 2022). furthermore, the integration of information technology (it) has been identified as a key enabler of sense agility, facilitating real-time data analysis and communication across organizational levels (carvalho et al., 2023). moreover, the relationship between sense agility and organizational structure cannot be overlooked. a flexible organizational structure that promotes collaboration and cross-functional teams can significantly enhance an organization's ability to sense changes in the market (akunne & ibrahim, 2021). this structural adaptability allows for quicker decision-making processes and fosters innovation, which are essential components of organizational agility. in contrast, rigid structures may hinder responsiveness and limit the organization's capacity to effectively leverage its sensing capabilities. sense agility serves as a vital proxy for organizational agility, influencing how organizations perceive and respond to environmental changes. the literature highlights the importance of leadership, it integration, and flexible organizational structures in enhancing sense agility. as organizations continue american journal of business management, economics and banking volume 28 september 2024 p a g e | 38 www.americanjournal.org to face rapid changes in their operational landscapes, developing these capabilities will be essential for sustaining competitive advantage and achieving long-term success. decision making agility: decision-making agility is increasingly recognized as a critical component of organizational agility, enabling organizations to respond swiftly and effectively to dynamic environments. this concept refers to the ability of organizations to make informed decisions rapidly, adapting to changes in the market or internal conditions. research indicates that decision-making agility is influenced by various factors, including leadership styles, organizational culture, and employee empowerment. for instance, leadership agility has been shown to significantly enhance organizational agility by fostering a culture that values adaptability and quick decision-making processes (hidayat et al., 2023). furthermore, the integration of knowledge management practices plays a pivotal role in enhancing decision-making agility. a study conducted in palestinian universities highlighted that employee empowerment and knowledge management directly impact decision-making agility, with extra-role performance serving as a mediating factor (al-mahmoud et al., 2023). this suggests that organizations that empower their employees and facilitate knowledge sharing are better positioned to make agile decisions, thereby improving their overall performance and adaptability. the advent of digital technologies has also transformed decision-making processes within organizations. the use of artificial intelligence (ai) has been identified as a significant enhancer of decision-making agility, particularly in supply chain management. research indicates that ai can improve data processing speeds and prediction accuracy, which are crucial for timely decision-making (adebayo et al., 2024). this technological integration not only streamlines decision-making processes but also supports organizations in navigating complex market dynamics more effectively. decision-making agility serves as a vital proxy for organizational agility, influenced by leadership qualities, employee engagement, knowledge management practices, and technological advancements. organizations that prioritize these elements are likely to experience enhanced adaptability and responsiveness in an ever-changing business landscape. as research continues to evolve in this area, further exploration into the interplay between these factors will be essential for developing comprehensive frameworks that support agile decision-making practices. acting agility: acting agility, as a proxy for organizational agility, has emerged as a crucial concept in management literature, particularly in the context of rapidly changing business environments. it refers to an organization's ability to respond swiftly and effectively to market changes, customer demands, and competitive pressures. research indicates that organizations with high acting agility can adapt their strategies and operations more efficiently, leading to improved performance outcomes (teece, 2007). this agility is often linked to the flexibility of organizational structures and processes, which facilitate quicker decision-making and resource allocation (dove, 2001). the role of leadership in fostering acting agility has been extensively studied. leaders who promote a culture of innovation and responsiveness are essential for developing agile organizations. they encourage team collaboration and empower employees to make decisions that align with organizational goals (sambamurthy et al., 2003). moreover, transformational leadership styles have been found to positively influence acting agility by inspiring teams to embrace change and pursue continuous american journal of business management, economics and banking volume 28 september 2024 p a g e | 39 www.americanjournal.org improvement (avolio & bass, 1991). this highlights the interplay between leadership practices and the development of agile capabilities within organizations. technological advancements also play a significant role in enhancing acting agility. the integration of digital tools and platforms enables organizations to gather real-time data, analyze market trends, and adjust their strategies accordingly (bharadwaj et al., 2013). for instance, companies leveraging big data analytics can make informed decisions that enhance their responsiveness to customer needs (wang et al., 2016). this technological empowerment not only accelerates decision-making processes but also fosters a proactive approach to market challenges. furthermore, the measurement of acting agility remains a pivotal area of research. various frameworks have been proposed to assess the dimensions of agility within organizations, including responsiveness, flexibility, and adaptability (yusuf et al., 1999). understanding these dimensions allows organizations to identify gaps in their agility practices and develop targeted strategies for improvement. as the business landscape continues to evolve, ongoing research into acting agility will be vital for guiding organizations toward sustainable competitive advantages. empirical review the relationship between formalization and organizational agility has been explored in various studies, each contributing unique insights into how these constructs interact within different contexts. alsharif (2023) investigated how competition intensity of smes moderate the relationship between environmental turbulence and organizational agility. the research focused on small and medium-sized enterprises (smes) in saudi arabia. utilizing a quantitative cross-sectional research design, data were collected from 1,256 smes. the statistical analysis revealed that competition intensity acts as a moderator in the relationship between environmental turbulence and organizational agility, suggesting that higher competition can enhance agility in turbulent environments. lee (2023) examined how employee relationship management relates with organizational agility with employee empowerment mediating the relationship in the consumer goods sector. the study targeted the consumer goods sector in turkey and employed a survey method to gather data from 358 respondents using closed-ended questionnaires. the analysis utilized structural equation modeling, which demonstrated that effective employee relationship management significantly impacts organizational agility through the mediating role of employee empowerment. the findings signposts the significance associated with empowering company employees to improve organizational responsiveness. another significant contribution is from gupta (2023) in the relationship between digital leadership and organizational agility with individual motivation mediating the relationship. this study was conducted among 480 employees in istanbul, turkey, using a survey instrument comprising various scales related to digital leadership and organizational agility. the analysis involved t-tests and anova, concluding that individual motivation mediates the relationship between digital leadership and organizational agility, highlighting the necessity for organizations to foster digital leadership to enhance agility. smith (2024), conducted a study on the relationship between job redesigning, reskilling and upskilling on organizational agility, the focus was on three service provider industries in lebanon. the research design included two surveys targeting 384 employees and 67 hr managers. the analysis revealed a significant and positive relationship between job redesign and the implementation of skilling american journal of business management, economics and banking volume 28 september 2024 p a g e | 40 www.americanjournal.org programmes, which collectively enhance organizational agility by improving employees' readiness for change. torres (2024) examined the relationship between digital leadership and innovative behavior and organizational agility with work engagement playing the mediating role. the study involved 494 participants across various sectors. using structural equation modeling for data analysis, it found that work engagement partially mediates the effects of both digital leadership and innovative behavior on organizational agility. this indicates that fostering engagement is crucial for leveraging digital leadership to achieve agile outcomes. empirical review formalization and sense agility eisele and brettel (2021) examined the relationship between value creation through strategic investments in digital technologies with organizational agility serving as a mediating variable. the study was conducted in europe. the researchers developed a conceptual model through a literature review, proposing that digital business intensity positively affects competitive advantage, mediated by sensing and responding agility. although this study did not involve sampling, it suggests that formalization through digital investments can enhance an organization's agility in sensing market changes. in pakistan, shahbaz et al. (2021), studied supply chain capabilities by investigating how market sensing, supply chain agility, and adaptability affect supply chain ambidexterity. this quantitative survey-based study employed structural equation modeling (sem) to analyze data collected from manufacturing firms. the findings indicated that market sensing positively impacts supply chain agility, which enhances ambidexterity. the study suggests that formalization in processes facilitates better market sensing capabilities. eisele (2020) also explored this theme on how business intelligence and communication technologies influence organizational agility. although the geographical context is not specified, the research utilized a configurational approach with case studies. the qualitative analysis focused on configurations and revealed that the formalized use of business intelligence and communication technologies promotes organizational agility by improving sensing capabilities. awan et al. (2020) examined the moderating effect of environmental turbulence on the strategic agilityperformance relationship in their study titled "the moderating effect of environmental turbulence on the strategic agility-performance relationship," conducted in nigeria. using a cross-sectional survey design, they gathered data from 515 managers in oil and gas marketing companies. the inferential statistics showed that strategic agility positively affects performance, moderated by environmental turbulence. this implies that formalized structures can enhance an organization's agility in dynamic environments. formalization and decision-making agility khan et al. (2024) assessed team delivery capability and agility: complementary effects on information systems development project outcomes. the research, conducted in the context of contemporary information systems development, utilized survey data from 160 software development professionals. the methodology included a quantitative approach with structural equation modeling to analyze the data. the findings indicated that delivery capability positively affects agility, which in turn enhances american journal of business management, economics and banking volume 28 september 2024 p a g e | 41 www.americanjournal.org change-response outcomes, highlighting the importance of formalized processes in fostering agile responses to project changes. another notable study is musa et al. (2024), which examined supply chain agility in humanitarian organizations: examining the role of self-organization, information integration and adaptability in south sudan. this research employed a structured questionnaire survey targeting 86 humanitarian organizations and analyzed the data using partial least square structural equation modeling. the study found that self-organization significantly influences supply chain agility both directly and indirectly through adaptability. this suggests that formalization through structured self-organizing practices can enhance an organization's agility in dynamic environments. shah et al. (2023) contributed to this discourse with their article on how to achievie software development agility: different roles of team, methodological and process factors." conducted among 160 software development professionals, this study utilized a survey methodology and structural equation modeling for data analysis. the results supported a model linking team variables and methodological factors to process variables, ultimately influencing software development agility. this reinforces the notion that formalized team structures and methodologies are crucial for enhancing agile capabilities. in a different geographical context, gholami et al. (2018) explored the relationship between quantum management and organizational agility in ministry of roads and urban development of golestan province, iran. this correlation-descriptive study involved 166 employees from the ministry, with data analyzed through correlation and regression analysis techniques. the findings revealed a significant positive relationship between quantum management practices and organizational agility, suggesting that formalized management approaches can predictably enhance agility. adebayo et al. (2020) investigated the moderating effect of environmental turbulence on the strategic agility-performance relationship: empirical evidence from lagos state, nigeria. utilizing a crosssectional survey design with a population of 515 managers from oil and gas marketing companies, the research employed descriptive statistics and regression analyses. the findings indicated that strategic agility positively correlates with performance while environmental turbulence moderates this relationship, emphasizing the need for formalized strategic frameworks to maintain performance amidst uncertainty. formalization and acting agility ekweli (2020) explored the relationship between process innovation and organizational agility in the banking sector of nigerian economy. conducted in nigeria, this research utilized a cross-sectional survey design involving 36 top and middle managers from 18 deposit money banks. the findings revealed a significant relationship between process innovation and organizational agility, specifically indicating that process innovation positively influenced acting agility, which is crucial for adapting to market changes. another relevant study is by jafarzadeh et al. (2012) conducted a study to find out how organizational structure relates with organizational agility in the insurance industry. the study was carried out in iran, focusing on a sample of 73 employees selected randomly from a larger population of 300 in an insurance company. the study employed a questionnaire for data collection, with reliability confirmed through cronbach's alpha. the analysis using spss indicated a significant relationship between formalization and organizational agility, suggesting that formalized structures can enhance agility within organizations 6. american journal of business management, economics and banking volume 28 september 2024 p a g e | 42 www.americanjournal.org mazzoleni et al. (2023) examined the interplay between digitalization and human it agility among italian smes. utilizing a poset approach to analyze microdata from 4,682 manufacturing companies, this research found a strong relationship between digitalization propensity and human it agility. the findings suggest that as organizations formalize their digital processes, they also enhance their capacity for agile responses to market demands. methodology the research design functions as a conceptual framework that guides the systematic gathering and examination of data (bryman & bell, 2011). for the present study, cross-sectional research design was adopted. the selection of a cross-sectional approach was deemed suitable for this study due to the absence of direct researcher monitoring of the participants, who are primarily employees of qsrs (pawar, 2020). the study included a sample of staff members of 10 operational qsrs located in port harcourt, which were considered representative of the whole population (210 employees) for the research. the sample size of this study was determined mathematically using the taro yamane’s formula which resulted in a sample size of 138 employees. primary data were collated through a wellstructured questionnaire with four point likert scale. the assessment of data dependability was conducted with the cronbach alpha test, with a pre-set threshold of 0.7. the research instrument had essential alterations and modifications due to this facilitation. the reliability of the instrument was assessed using the cronbach alpha test, with the support of the statistical package for social sciences (spss, 23.0) and resulted to a value of 0.754. partial least square structural equation modeling was deployed to test the hypotheses of the study. results and discussion of findings figure 1.1: structural path model showing relationship between dimensions of for and org.a source: smart pls output, 2025 fom for 1 for 2 for 4 for 5 0.952 0.870 0.969 0.833 org. a 0.939 sa4 sa3 sa2 0.805 0.894 0.827 act3 act2 act1 act6 0.793 0.936 0.931 0.927 dm1 dm3 dm4 dm5 0.849 0.846 0.736 0.853 american journal of business management, economics and banking volume 28 september 2024 p a g e | 43 www.americanjournal.org table 1: path analysis result of relationship between dimension of recognition and table hypothesized path p-value standard t value decisions f-squared effect size 1. for x org.a 0.000 0.013 7.222 not supported 3.442 large source: the researcher’s computation (2025). the partial least squares structural equation modeling (pls-sem) analysis in the provided study examines the relationship between formalization (for), sense agility (sa), decision-making agility (dm. a), act agility (act. a), and organizational agility (org.a). the model evaluates how formalized structures within an organization contribute to its overall agility across different dimensions. path analysis and model interpretation in the path analysis, the relationship between formalization and organizational agility is tested. the path from formalization to organizational agility shows a p-value of 0.000, indicating statistical significance. the t-value is 7.222, which confirms the robustness of the relationship. however, despite these statistically significant results, the decision indicates that this path is "not supported." this suggests that, while formalization plays a role, its direct impact on organizational agility is not straightforward and may be influenced by other factors. the effect size (f-squared) for this path is 3.442, categorized as large. this large effect size highlights the substantial influence of formalization on organizational agility, even though the direct path is not supported. this discrepancy suggests the need for further investigation into the mediating or moderating factors that might influence this relationship. formalization and sense agility (sa): research, such as eisele and brettel (2021), suggests that formalization, especially through digital investments, enhances an organization's ability to sense market changes. this improvement in sense agility is crucial for maintaining a competitive advantage. the structured approach in sensing market trends allows organizations to better anticipate and respond to environmental changes. formalization and decision-making agility: studies like khan et al. (2024) and musa et al. (2024) emphasize the importance of formalization in fostering decision-making agility. formal processes and structures provide a framework for organizations to make quick, informed decisions, which is essential in dynamic and fast-paced environments. these findings indicate that formalization can streamline decision-making processes, enhancing an organization's agility. formalization and acting agility: the impact of formalization on acting agility is also supported by empirical studies. for instance, ekweli (2020) demonstrates that process innovation, a form of formalization, significantly improves acting agility within the banking sector. similarly, jafarzadeh et al. (2012) show that formalized organizational structures enhance the ability to act swiftly in response to market changes. these findings suggest that formalized systems and processes are critical in enabling organizations to implement actions promptly and effectively. american journal of business management, economics and banking volume 28 september 2024 p a g e | 44 www.americanjournal.org conclusion and implication for practice the article emphasizes the critical importance of organizational agility in today’s rapidly evolving business landscape, where technological advancements and market dynamics are constantly shifting. it discusses how agile organizations can respond quickly to changes, fostering innovation and improving overall efficiency. the interplay between formalization and agility is highlighted, with a focus on balancing structured processes and flexibility to optimize organizational responsiveness. the study suggests that while some degree of formalization is necessary for consistency, excessive rigidity can impede agility. the dynamic capabilities theory is proposed as a framework to understand how organizations can develop the necessary adaptive capabilities to thrive in uncertain environments. the implications for practice suggest that organizations should carefully assess their level of formalization to ensure it supports rather than stifles agility. leaders are encouraged to foster a culture that values continuous learning and innovation, integrating agile practices into their formalized structures. recommendations include adopting flexible approaches to formalization, enhancing employee empowerment, and leveraging digital leadership to navigate the complexities of modern business environments effectively. future research should focus on operationalizing these concepts across various sectors to provide more comprehensive insights into the optimal balance between formalization and agility for sustained organizational success. references 1. adebayo et al. 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(1999). agile manufacturing: the drivers, concepts and attributes. international journal of production economics, 62(1), 33-43. american journal of business management, economics and banking issn (e): 2832-8078 volume 29, | october 2024 p a g e | 39 www.americanjournal.org the practice of attracting extrabudgetary funding for higher education institutions alisher bakberganovich sherov professor at mamun university, phd a b s t r a c t k e y w o r d s this research paper describes the content of financing of higher education institutions in uzbekistan and foreign countries, sources of financing and the role of extra-budgetary funds in it. in addition, a comparative analysis of extra-budgetary funds, their composition and main indicators in the income of higher education institutions was conducted. during the study, an analysis was conducted using the methods of economic and statistical analysis, analysis and synthesis and corresponding conclusions were formed, as well as scientific proposals and practical recommendations for expanding the attraction of extra-budgetary funds to higher education institutions were developed. education, higher education, budget expenditures, extrabudgetary funds, development fund, commercialization. introduction the prospects of a country depend on the extent and effectiveness of the reforms that are implemented. only comprehensively thought-out reforms, after thoroughly analyzing the areas requiring attention, will be able to alleviate people's problems, ease their burdens, improve their living standards, and find solutions to their problems. at the same time, based on the implemented measures, it is appropriate to take into account the long-term perspective, rather than being content with solving today's problems. reforms in the education system in our country, without taking into account the trends of society development, demographic growth of the population and aspirations of young people, did not bring the expected results. in the course of it, the problems increased rather than decreased [a.yusupbaeva, 2024]. therefore, in our country, science was given attention at the level of state policy, and the next six years were full of great changes and renewals in the field of education. the image of educational centers has radically changed, the material and technical base has been strengthened. this, in turn, strengthened the aspiration of young people for higher education, raising the quality and level of education. the number of higher education institutions has increased almost 2.6 times to 212, thanks to the fact that our country is creating excellent conditions for young people to obtain higher education. the enrollment rate has increased from 9 percent to 42 percent. most importantly, a system of preferential loans for higher education has been introduced, and the practice of providing interest-free loans to women has been introduced. american journal of business management, economics and banking volume 29 october 2024 p a g e | 40 www.americanjournal.org note that until 2017, the number of grant places in higher education only decreased, but in recent years, efforts have been made to increase grants. in particular, the number of state grants for higher education has been increased by 75%, and the number of state grants for women with children from low-income families has been doubled. the basis of such reforms, of course, is a certain amount of financial resources. therefore, practically in all countries of the world in the process of restructuring the system of socio-economic relations, effective organization of market forms in management, there were significant changes in the system of financing of higher education institutions, which, in turn, increased financial financing of higher education institutions led to the revision of the management mechanism and changes to meet the requirements of the market. literature review: a number of domestic and foreign scholars have conducted research on the role of higher education institutions in the development of innovation economy of the country. in their studies i. syladii, y. babaian identified a number of principles of innovative development of the country's higher education system, including humanism, variability, innovation management, democratization and international integration [syladii, i., babaian, y., kanishevska, l., shakhrai, v., & berbets, v. 2023]. н. badriddinov and d. gorobets focused their research on the efficiency assessment of higher education institutions and in their research they propose to divide the efficiency assessment of higher education institutions according to the following criteria: − assessment of compliance with license and accreditation requirements; − quality of educational services and professional skills (qualities, quality) of a graduate; − efficiency of budget funds utilization; − efficiency of commercialization of services of higher education institutions; − university rating [n.badrtdinov, d.gorobets, 2016]. m. suraeva and o.andreev in their research investigated the role of investment in the development of the country, in particular, the effective organization of the education system and its efficient functioning [m.suraeva, o.andreev, 2019]. к. hoareau, jo ritzen and j. marconi as a result of the analysis of higher education and economic innovation in 32 european countries came to the conclusion that, according to them, more public investment in higher education (any state, be it private higher education institutions) constitutes one of the main policies of the country. also according to the results of the study it is clear that the autonomy of higher education institutions depends on their research results, ranking indicators and employment rates of graduates [cecile hoareau1, jo ritzen and gabriele marcon, 2013]. research methodology a number of methods were used in the preparation of this article, the main ones being financial analysis, analysis and synthesis, and statistical analysis. analysis and discussion of the results one of the main tasks of higher education institutions' financial resources management is the search for new sources of funding, their formation and effective management. financial resources of higher education institutions are formed at the expense of the following sources: state budget funds; students' american journal of business management, economics and banking volume 29 october 2024 p a g e | 41 www.americanjournal.org funds; financial resources of employers; funds from commercialization of scientific and innovative developments, sponsorship and charity funds, funds from rent of empty buildings and other property; other financial resources obtained through various grants and additional services and not prohibited by law. state financing of higher education institutions is carried out from the state budget revenues at the expense of taxpayers' funds. financial resources formed at the expense of students and employers of higher education institutions are considered as decentralized extra-budgetary financial resources of higher education institutions. also, the funds formed at the expense of extra-budgetary sources include private funds of higher education institutions. attraction of extra-budgetary sources of financing of educational institutions is widespread in a number of countries and positively affects the formation of their financial base. for example, the share of extrabudgetary sources in the financing of higher education institutions in oecd countries (organization for economic cooperation and development) is: in the united states 52 percent, the united kingdom 38 percent, canada 39 percent, japan. 57 percent” [g. semeko, 2018]. one of the factors contributing to the rapid growth of extrabudgetary activities is the development of scientific, innovative, experimental, constructive and design activities of higher education institutions, contributing to the transformation of higher education institutions into the central part of technoparks and technopolises. the expansion of funds of higher education institutions, formed at the expense of extra-budgetary sources, is determined by the high demand of enterprises and organizations for various types of services. today, the number of higher education institutions in uzbekistan has grown from 70 to 212, including 91 in tashkent and 121 in the regions. of these, 69 are non-state, 29 foreign and 114 state higher education institutions. in 2022 alone, 43 new higher education institutions were opened. the level of coverage of young people with higher education is planned to reach 50% in 2026. with this in mind, the number of state grants for enrollment in higher education institutions has been doubled from 21 thousand to 40 thousand. despite the fact that the main part of the funds of higher education institutions in our country is formed at the expense of extra-budgetary funds, a significant part of these funds is formed at the expense of student fee contracts. the figure below shows the extra-budgetary funds of public higher education institutions in our country (figure 1). figure 1. extrabudgetary funds of higher education institutions, billion uzs 910.2 1533.7 2053.1 2415.6 3891.1 5484.3 7635.8 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2017 2018 2019 2020 2021 2022 2023 american journal of business management, economics and banking volume 29 october 2024 p a g e | 42 www.americanjournal.org figure 1 shows that the amount of extra-budgetary funds of public higher education institutions tends to increase year by year, in 2018 compared with the previous year by 68.5%, in 2019 respectively compared with the previous year. year we can see an increase of 33.9%, 17.7% in 2020, 61.1% in 2021 and 40.9% and 39.2% in 2022 and 2023 respectively. during 2017-2020, it can be seen that despite the increase in extrabudgetary funds, the growth rate tends to decrease. by 2021, the growth rate has increased, but in 2022 and 2023, we may see the rate decrease again. в таблице ниже мы видим объем поступлений из бюджетных средств, платежно-договорных фондов и средств, полученных из фонда развития высших учебных заведений в 2021-2024 годах. table 1 revenues of higher education institutions, billion uzs indicators * 2021 2022 2023 2024 (semiannual) budgetary funds 1442,7 2189,4 2729,1 1887,3 income from payment contract funds (total income) 5241 6279,3 7306,3 4869,4 income from development funds (total income) 243,3 302 329,5 211,9 total income 6927,1 8770,7 10364,9 6969,1 * note: when calculating the analysis data, 62 heis are obtained in 2021, 69 in 2022, and 72 in 20232024. from the data of this table we can see that the share of budgetary funds in the financing of higher education institutions in the analyzed periods increases, and the funds falling on the settlement and contract account and the development fund decrease. . we can see. to more fully analyze the data in this table, the percentage of each income is shown in the figure below (figure 2). in modern conditions, one of the peculiarities of the current state of financial provision of higher educational institutions of our country is that a significant part of it is financed at the expense of paidcontract funds paid by students. figure 2: distribution of total income of higher education institutions of the ministry of higher education, science and innovation, in percentages 20.8 25 26.3 27.1 75.7 71.6 70.5 69.9 3.5 3.4 3.2 3 0 20 40 60 80 100 120 2021 2022 2023 2024 semiannual budgetary funds payment contract funds development fund american journal of business management, economics and banking volume 29 october 2024 p a g e | 43 www.americanjournal.org from this chart, we see that in 2021, in the total revenues of higher education institutions of the ministry of higher education, science and innovation (formerly gs'mtb), funds derived from payment and contractual funds account for 75, was 7 percent, and by 2022, the figure will be 71.6 percent. in 2023, these funds represent 70.5 percent of total funds. at the same time, the share of budgetary funds in the funds of higher education institutions has been increasing in recent years. for example, by 2023, we may see a 5.5 percent increase over 2021, while the pay-as-you-go and development funds are trending downward. if we take into account that we took public higher education institutions as the object of the study and the indicators of the analysis are also related to public higher education institutions, the positive situation is that 70 percent of the revenues of higher education institutions are formed at the expense of the payment contract, we cannot assess this. the reason is that if we look at the experience of developed countries of the world, we will see that the share of the state in the financing of public higher education institutions is much higher. in particular, 94% of revenues of higher education institutions in austria, 92% in finland, 84% in sweden, 83% in germany and 82% in belgium are distributed by the state. even if we turn to the experience of the united states, where there is the largest number of for-profit higher education institutions, here on average 40-45 percent of the revenues of public higher education institutions are distributed to different levels of the state budget. if we look at the experience of south korea and australia, the average level of state funding here is 35-40 percent. funds formed on the basis of payment contracts in these countries are on average 45-46 percent. conclusions and recommendations in conclusion, it can be said that the main part of higher education institutions in our country is formed at the expense of settlement and contractual funds of students, which in turn creates dependence on student funds. the volume of funds allocated by the state budget is on average 20-25 percent. when financing higher education institutions from the state budget, it is advisable to take into account the scientific potential of higher education institutions, local and international rating indicators, and the location of higher education institutions. we believe that it is necessary to take into account such factors when determining the amount of payment under the contract. at the same time, in order not to fall into dependence on payment-contract funds, it is necessary to organize diversification of sources of extrabudgetary funds, including commercialization of scientific and innovative developments prepared by heis, educational literature, training of professors. paid lectures of teachers, develop pr-projects and gradually introduce the “university 4.0” system. references 1. sherov, a. (2015). foreign experience in financing of higher educational system. scientific enquiry in the contemporary world: theoretical basics and innovative approach [l 26], 1, 92-95. 2. yusupbayeva a. oliy ta’lim islohotlari: muammolar, o‘zgarish va yutuqlar. https://uzmarkaz.uz/uzc/news/oliy-talim-islohotlari-muammolar-ozgarish-va-yutuqlar 3. cecile hoareau1, jo ritzen and gabriele marcon, higher education and economic innovation, a comparison of european countries. hoareau et al. iza journal of european labor studies 2013 4. sherov, a. (2018). legal basis and importance of state financing of education system. international finance and accounting, 2018(2), 28. https://uzmarkaz.uz/uzc/news/oliy-talim-islohotlari-muammolar-ozgarish-va-yutuqlar american journal of business management, economics and banking volume 29 october 2024 p a g e | 44 www.americanjournal.org 5. образование в цифрах: 2022 : краткий статистический сборник / л. м. гохберг, л. б. кузьмичева, о. к. озерова и др.; нац. исслед. ун-т «высшая школа экономики».– м. : ниу вшэ, 2022. – 132 с. – 200 экз. – isbn 978-5-7598-2694-1 (в обл.). 6. lorenzo c., francesca s. improving knowledge transfer and innovation services: a roadmap for knowledge transfer offices. journal of innovation & knowledge, volume 9, issue 4, october– december 2024, 100577 7. шеров, а. б. (2021). олий таълим муассасаларини бюджет маблағлари ҳисобидан молиялаштиришни такомиллаштириш йўллари. oriental renaissance: innovative, educational, natural and social sciences, 1(10), 1121-1133. 8. г.в.семеко финансирование образования в ведущих странах мира после финансового кризиса: сравнительный анализ // эспр. 2018. №2. 9. bakberganovich, s. a. (2021). ways to increase the efficiency of financing higher education institutions. journal of marketing and emerging economics, 1(7), 49-56. 10. syladii, i., babaian, y., kanishevska, l., shakhrai, v., & berbets, v. (2023). innovative development of the higher education institution: management mechanisms. revista eduweb, 17(3), 257-269. 11. шеров, а. б. (2020). олий таълим муассасаларини молиялаштиришни такомиллаштириш йўллари” мавзусидаги иқтисодиёт фанлари бўйича фалсафа доктори илмий даражасини олиш учун тайёрланган докторлик диссертацияси. 12. dayanis g., carlos d., valmir e., catalina c. on entrepreneurial and ambidextrous universities. comparative study in ibero-american higher education institutions. sustainable technology and entrepreneurship 3 (2024) 100077 13. n.badrtdinov, d.gorobets evaluation of the effectiveness of management development institutions of higher education on the basis of the factor and criterion model. international journal of environmental & science education 2016, vol. 11, no. 18, 12167-12182 14. ruoying zhou, puay tang the role of university knowledge transfer offices: not just commercialize research outputs. technovation xxx (xxxx) xxxx. https://www.sciencedirect.com/science/article/abs/pii/s0166497217307897 15. m.suraeva, o.andreev current trends in innovative development of higher education. eurasia: sustainable development, security, cooperation – 2019 16. sherov, a. b. (2023). state financing of higher education institutions in the context of the introduction of innovative economy. central asian journal of mathematical theory and computer sciences, 4(11), 132-136. 17. simon m. global trends in higher education financing: the united kingdom. international journal of educational development, volume 58, january 2018, pages 26-36. https://www.sciencedirect.com/science/article/abs/pii/s0738059317301748 18. www.edu.uz – the official website of the ministry of higher education, science and innovation 19. www.imv.uz the official website of the ministry of economy and finance of the republic of uzbekistan 20. www.openbudget.uz – "open budget" portal of the republic of uzbekistan. https://www.sciencedirect.com/journal/international-journal-of-educational-development/vol/58/suppl/c http://www.edu.uz/ http://www.imv.uz/ http://www.openbudget.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 26, | july 2024 p a g e | 23 www.americanjournal.org audit committee characteristics and financial performance of quoted insurance companies in nigeria wobo, henry orowhuo1 department of accounting, faculty of management sciences, university of port harcourt, rivers state, nigeria nwigbo, daima martins2 university of port harcourt business school, rivers state, nigeria email: tedumnwigbo@yahoo.co.uk corresponding author: email: henry.wobo@uniport.edu.ng a b s t r a c t k e y w o r d s the study investigated audit committee characteristics and financial performance in nigerian insurance companies. the study adopted expost-facto research design. utilizing data from eleven insurance companies listed on the nigerian exchange group as at 31st december, 2023, the study employed purposive sampling to ensure comprehensive analysis. descriptive statistics and ordinary least squares regression analysis, facilitated by e-view-9 statistical package, are utilized for rigorous examination. results revealed a significant positive association between audit committee size, composition, and profit after tax (pat). however, the frequency of audit committee meetings revealed positive insignificant relationship with pat. the findings underscored the importance of diverse and expert audit committee members, structured meeting schedules, and continuous training programs to enhance governance effectiveness and drive financial performance in the nigerian insurance sector. committee characteristics, financial performance introduction financial performance serves as a pivotal indicator for evaluating the stability, growth, and overall health of insurance companies, especially in nigeria, where the insurance sector plays a fundamental role in the country's financial infrastructure. with nigeria's economy continually evolving and facing various challenges, including regulatory changes, market dynamics, and consumer behaviors, assessing the financial performance of insurance firms becomes paramount to ensure their resilience and contribution to economic development. adeyemi and adekunle (2022) investigated the relationship between audit committee characteristics and financial performance of nigerian insurance companies. their findings, revealed a positive association between audit committee attributes (size, independence, american journal of business management, economics and banking volume 26 july 2024 p a g e | 24 www.americanjournal.org expertise) and financial performance metrics. they recommended enhancing audit committee composition and effectiveness to improve financial performance in the insurance sector. this underscores the need for a comprehensive understanding of the factors influencing financial performance in the nigerian insurance market. one significant internal factor that has garnered attention in recent research is the composition and effectiveness of audit committees within nigerian insurance companies. okoye and okafor (2019) found that greater independence and financial expertise in audit committees were linked to improved financial reporting quality, suggesting a need for stronger regulatory requirements and active committee participation to enhance transparency. olufemi and adesina (2021) revealed a positive correlation between audit committee attributes (independence, size, expertise) and financial performance indicators, recommending a focus on enhancing committee effectiveness and regulatory enforcement for transparency and accountability. afolabi and adeniyi (2020) identified a positive relationship between audit committee attributes (independence, size, expertise) and financial performance metrics, suggesting the prioritization of committee composition and effectiveness for improved company performance. akindele and adeoye (2018) also found a positive association between audit committee attributes (independence, size, expertise) and financial performance metrics, highlighting the importance of prioritizing committee composition and effectiveness for enhanced corporate performance and accountability. these studies underscore the broader significance of audit committee effectiveness in driving financial performance across various sectors and geographical regions, providing valuable insights for understanding the dynamics of audit committee oversight in insurance companies in nigeria. statement of the problem the effectiveness of audit committees in influencing the financial performance of nigerian insurance companies remains a critical area of concern amid evolving regulatory frameworks and market dynamics. while previous studies, such as those by adeyemi and adekunle (2022), okoye and okafor (2019), and olufemi and adesina (2021), have examined the relationship between audit committee characteristics and financial performance within the nigerian insurance sector, there exists a lack of consensus on the specific attributes that significantly impact financial outcomes. additionally, the literature predominantly focuses on audit committee characteristics in broader corporate governance contexts, leaving gaps in understanding the unique challenges and opportunities faced by insurance companies in nigeria. thus, a comprehensive investigation into the effectiveness of audit committees and their influence on financial performance metrics, considering factors such as committee size, composition, and frequency of meetings, is warranted to inform policy interventions and corporate governance practices aimed at enhancing transparency, accountability, and ultimately, the financial stability of nigerian insurance firms. aim/objective of the study the aim of this study was to investigate the relationship between audit committee characteristics and financial performance of quoted insurance companies in nigeria. however, specifically, the study sought to: 1. ascertain the relationship between audit committee size and profit after tax of quoted insurance companies in nigeria. american journal of business management, economics and banking volume 26 july 2024 p a g e | 25 www.americanjournal.org 2. assess the relationship between audit committee composition and profit after tax of quoted insurance companies in nigeria. 3. investigate the relationship between audit committee meetings and profit after tax of quoted insurance companies in nigeria. research questions. the following research questions were answered 1. how does audit committee size relate to profit after tax of quoted insurance companies in nigeria? 2. what is the relationship between audit committee composition and profit after tax of quoted insurance companies in nigeria? 3. what is the relationship between audit committee meetings and profit after tax of quoted insurance companies in nigeria? research hypotheses. the study tested the following research null hypotheses; h01: audit committee size does not significantly relate to profit after tax of quoted insurance companies in nigeria. h02: there is no significant relationship between audit committee composition and profit after tax of quoted insurance companies in nigeria. h03: there is no significant the relationship between audit committee meetings and profit after tax of quoted insurance companies in nigeria. 2. literature review 2.1 theoretical framework agency theory in the context of the relationship between audit committee characteristics and financial performance in insurance companies, the agency theory provides a suitable framework for understanding the dynamics at play. developed by jensen and meckling (1976), agency theory posits that conflicts of interest arise between principals (such as shareholders) and agents (such as managers) due to divergent goals and information asymmetry. in the context of insurance firms, shareholders delegate decisionmaking authority to managers who may prioritize their own interests over shareholder wealth maximization. audit committees act as monitoring mechanisms to mitigate agency conflicts by providing independent oversight of managerial actions, ensuring compliance with regulatory requirements, and safeguarding the integrity of financial reporting processes. scholars such as ahmadzaluki, rahman, and wan-hussin (2020) and abor and dadjee (2020) have applied agency theory to examine how audit committee attributes, such as independence and expertise, influence financial performance outcomes by aligning managerial actions with shareholder interests and enhancing corporate governance mechanisms to mitigate agency costs. 2.2 conceptual review audit committee characteristics audit committee characteristics encompass a range of attributes that define the composition, structure, and functioning of audit committees within organizations. these characteristics play a crucial role in american journal of business management, economics and banking volume 26 july 2024 p a g e | 26 www.americanjournal.org ensuring the effectiveness of audit committees in fulfilling their oversight responsibilities related to financial reporting, internal controls, and risk management. various scholars have examined these characteristics and their impact on organizational governance and financial performance. for instance, chen, cheng, and yu (2020) emphasize the importance of audit committee independence in enhancing financial reporting quality and reducing the likelihood of financial misconduct. similarly, klein (2017) highlights the significance of audit committee expertise, arguing that members with relevant financial and industry-specific knowledge can provide valuable insights and guidance to management, particularly in complex regulatory environments such as the insurance sector in nigeria. moreover, the diligence and proactiveness of audit committee members have been underscored by researchers such as kakabadse, kakabadse, and kouzmin (2019), who argue that active engagement and continuous monitoring by audit committees are essential for detecting and mitigating emerging risks and ensuring regulatory compliance. additionally, the size and diversity of audit committees have been explored by authors like sharma, kaur, and sharma (2018), who suggest that larger and more diverse committees can offer a broader range of perspectives and expertise, leading to more robust oversight and decision-making processes. audit committee size audit committee size refers to the number of members comprising the audit committee within an organization, a crucial aspect of corporate governance that directly influences its effectiveness in oversight and decision-making processes. scholars have extensively explored the impact of audit committee size on various governance outcomes and financial performance metrics. for instance, ahmad-zaluki, rahman, and wan-hussin (2020) argue that larger audit committees tend to possess greater resources and expertise, enabling them to conduct more thorough evaluations of financial reporting practices and internal control systems, thus enhancing financial transparency and accountability. conversely, some researchers, such as gholami, pouraghajan, and zarei (2021), suggest that smaller audit committees may facilitate more efficient communication and decision-making processes, leading to quicker responses to emerging issues and challenges. moreover, the composition of audit committee size, including the balance between executive and non-executive members, has been studied by authors like ntim et al. (2016), who found that a higher proportion of independent directors on audit committees is associated with improved financial reporting quality and reduced earnings management practices. additionally, the industry-specific context can influence the optimal size of audit committees, as highlighted by studies such as cheng, cheng, and chen (2020), who found that larger audit committees are more prevalent in industries with greater regulatory scrutiny and complexity, such as the financial services sector. in summary, audit committee size plays a crucial role in shaping governance dynamics within organizations, with implications for financial reporting quality, risk management effectiveness, and overall corporate performance. audit committee composition audit committee composition refers to the makeup of individuals serving on the committee, encompassing factors such as their expertise, independence, diversity, and qualifications, all of which play a critical role in determining the committee's effectiveness in fulfilling its oversight responsibilities. numerous scholars have explored the impact of audit committee composition on american journal of business management, economics and banking volume 26 july 2024 p a g e | 27 www.americanjournal.org corporate governance outcomes and financial performance. for instance, research by bedard et al. (2019) emphasizes the importance of audit committee independence, suggesting that a majority of independent members can enhance the committee's objectivity and effectiveness in overseeing financial reporting practices and internal controls. similarly, the expertise of audit committee members, particularly in accounting and finance, has been highlighted by authors like bédard and gendron (2010), who argue that such expertise enables committee members to better understand complex financial issues, ask relevant questions, and provide informed guidance to management. moreover, the diversity of audit committee composition, including factors such as gender and professional backgrounds, has gained attention from scholars such as ebrahim and mathews (2018), who suggest that diverse perspectives can lead to more robust discussions and decision-making processes, ultimately enhancing the quality of governance outcomes. additionally, the qualifications and experience of audit committee members, particularly in relation to regulatory requirements and industry-specific knowledge, have been studied by researchers like kwon, simunic, and stein (2016), who found that committees with members possessing relevant qualifications are associated with improved financial reporting quality and reduced likelihood of financial misconduct. in summary, audit committee composition plays a pivotal role in shaping governance dynamics within organizations, with implications for financial reporting integrity, risk management effectiveness, and overall corporate performance. audit committee meetings audit committee meetings represent structured gatherings where committee members convene to discuss and address matters related to financial reporting, internal controls, risk management, and compliance within an organization, thereby fulfilling their oversight responsibilities. these meetings serve as a fundamental mechanism for facilitating communication, decision-making, and accountability among committee members, management, external auditors, and other stakeholders. various scholars have examined the significance of audit committee meetings in corporate governance and its impact on financial performance. for instance, research by fatima and ghazali (2020) emphasizes that regular and well-documented audit committee meetings are associated with improved financial reporting quality, which in turn enhances investor confidence and positively influences financial performance metrics such as earnings per share and return on assets. similarly, the effectiveness of audit committee meetings in addressing emerging risks and challenges has been studied by authors such as amran et al. (2019), who found that proactive engagement and thorough discussions during meetings are positively correlated with firms' financial performance, as they help mitigate risks and capitalize on opportunities. moreover, the agenda setting and decisionmaking processes during audit committee meetings have gained attention from researchers like suriani et al. (2021), who suggested that committees with clear agendas focused on strategic issues are more likely to contribute to enhanced financial performance by aligning governance efforts with organizational objectives. additionally, the composition and dynamics of audit committee meetings, including factors such as attendance, participation, and follow-up actions, have been explored by scholars such as abor and dadjee (2020), who argue that active involvement and monitoring of meeting outcomes are essential for translating governance activities into tangible improvements in financial performance. in summary, audit committee meetings play a crucial role in shaping governance practices and have significant implications for financial performance outcomes, american journal of business management, economics and banking volume 26 july 2024 p a g e | 28 www.americanjournal.org highlighting the importance of effective oversight and communication in achieving organizational objectives. financial performance financial performance of insurance companies refers to the assessment of their profitability, solvency, efficiency, and overall effectiveness in generating returns for shareholders while managing risks and meeting policyholder obligations. this metric is crucial for evaluating the stability, growth, and competitiveness of insurance firms within the financial services sector. scholars have extensively examined various dimensions of financial performance in the insurance industry. for instance, research by liu, li, and lu (2020) focuses on profitability measures such as underwriting margin and investment returns, highlighting their impact on insurers' ability to generate sustainable earnings. additionally, studies by oseifuah et al. (2019) emphasize the significance of solvency ratios such as the solvency margin and risk-based capital adequacy in ensuring insurers' ability to honor claims and withstand adverse events. efficiency metrics, including expense ratios and combined ratios, have been explored by authors like cheng and deng (2021), who suggest that efficient cost management and underwriting practices are critical for enhancing insurers' financial performance and competitiveness. moreover, the role of financial performance in influencing market dynamics and regulatory interventions has been studied by researchers such as kakes and moraga-gonzález (2019), who argue that performance metrics serve as benchmarks for regulatory oversight and market competition, shaping insurers' strategic decisions and market positioning. in summary, financial performance metrics provide valuable insights into insurance companies' operational efficiency, risk management practices, and long-term viability, serving as essential indicators for stakeholders, including investors, regulators, and policyholders, in assessing the industry's health and prospects. profit after tax profit after tax (pat) in the context of insurance companies refers to the net income generated by insurers after deducting all operating expenses, claims payments, and taxes from their total revenue. for insurance companies, pat serves as a crucial indicator of financial performance, reflecting their ability to effectively manage risks, underwrite policies, and generate profits for shareholders. several studies have explored the determinants and implications of pat specifically within the insurance industry. for instance, research by kporsu et al. (2020) examines the impact of underwriting risk, investment risk, and reinsurance on insurers' profitability, highlighting the importance of effective risk management practices in enhancing pat. similarly, studies by batten et al. (2019) and vencappa et al. (2021) investigate the influence of macroeconomic factors such as interest rates, inflation, and economic growth on insurers' pat, emphasizing the sensitivity of insurance companies' earnings to changes in the broader economic environment. moreover, the role of regulatory frameworks and accounting standards in shaping insurers' pat has been studied by authors like al-hares and lashgari (2021), who analyze the impact of regulatory changes on insurers' financial reporting practices and profitability levels. in summary, pat is a key performance metric for insurance companies, reflecting their ability to manage risks, generate underwriting profits, and deliver value to stakeholders in a dynamic and challenging business environment. american journal of business management, economics and banking volume 26 july 2024 p a g e | 29 www.americanjournal.org 2.3 empirical review adeyemi and adekunle (2022) investigated the relationship between audit committee characteristics and financial performance of nigerian insurance companies. they used structured questionnaires and regression analysis to find a positive association between audit committee attributes (size, independence, expertise) and financial performance metrics. their recommendation suggests enhancing audit committee composition and effectiveness to improve financial performance in the insurance sector. okoye and okafor (2019) explored audit committee characteristics and financial reporting quality in nigerian firms. through mixed methods, they found that greater independence and financial expertise in audit committees were linked to improved financial reporting quality, suggesting a need for stronger regulatory requirements and active committee participation to enhance transparency. olufemi and adesina (2021) examined audit committee composition and financial performance among nigerian insurance firms. their quantitative study revealed a positive correlation between audit committee attributes (independence, size, expertise) and financial performance indicators, recommending a focus on enhancing committee effectiveness and regulatory enforcement for transparency and accountability. afolabi and adeniyi (2020) investigated the impact of audit committee characteristics on financial performance in nigerian listed banks. using structured questionnaires and regression analysis, they identified a positive relationship between audit committee attributes (independence, size, expertise) and financial performance metrics, suggesting the prioritization of committee composition and effectiveness for improved bank performance. akindele and adeoye (2018) explored audit committee characteristics and financial performance among listed companies in nigeria. their quantitative study revealed a positive association between audit committee attributes (independence, size, expertise) and financial performance metrics, highlighting the importance of prioritizing committee composition and effectiveness for enhanced corporate performance and accountability. ahmad-zaluki et al. (2020) examined the impact of audit committee attributes on financial performance in malaysian listed firms. their findings suggest that greater audit committee independence and expertise enhance financial reporting quality and contribute to improved financial performance. the study underscores the importance of effective corporate governance mechanisms in enhancing firms' sustainability and competitiveness. abor and dadjee (2020) investigated the relationship between corporate governance, audit committee characteristics, and financial performance in sub-saharan african microfinance institutions (mfis). their study found that strong corporate governance, characterized by independent and knowledgeable audit committees, leads to better financial performance and sustainability in mfis. the findings emphasize the importance of governance mechanisms in enhancing transparency and investor confidence in the microfinance sector. amran et al. (2019) focused on the effectiveness of audit committees and their impact on financial performance in malaysian public listed companies (plcs). they found that audit committees with greater effectiveness contribute to improved financial reporting quality and market perception of firms' governance quality. the study highlights the critical role of audit committees in promoting transparency and accountability in the malaysian capital market. american journal of business management, economics and banking volume 26 july 2024 p a g e | 30 www.americanjournal.org suriani et al. (2021) analyzed audit committee attributes and corporate governance mechanisms' impact on financial performance in shariah-compliant firms in malaysia. their findings suggest that wellstructured and proactive audit committees, coupled with robust corporate governance practices, lead to better financial performance indicators in shariah-compliant firms. the study underscores the importance of effective governance mechanisms in driving sustainable growth and value creation in islamic finance. 3. methodology the study employed ex-post-facto research design due to the availability of preexisting data, ensuring that outcomes were not manipulated and reducing potential researcher bias. in the context of this study, the population comprised of the twenty-five (25) insurance companies listed on the nigerian exchange group (nxg) as at 31st december, 2023. the period covered by this investigation spanned from 20162023. purposive sampling technique was utilized to select eleven (11) companies with up-to-date annual financial reports covering all relevant variables, allowing for a comprehensive analysis of the variables under investigation (appendices). data analysis techniques including descriptive statistics, and ordinary least squares (ols) regression analysis were employed using e-view-9 statistical package, enabling rigorous examination of the variables. in accordance with the existing scholarly discourse, the econometric model can be delineated as follows: pat = f (acs, acc, acm) …................................................... i where; acs= audit committee size acc= audit committee composition acm= audit committee meetings pat= profit after tax 4. results and discussion of findings table 1: descriptive statistics pat acs acc acm mean 5.821974 5.021739 5.000000 3.695652 median 6.113044 5.000000 5.000000 4.000000 maximum 6.739106 7.000000 7.000000 5.000000 minimum 2.260071 4.000000 4.000000 2.000000 std. dev. 0.783431 0.802472 0.788811 0.839830 skewness -2.192626 0.222157 0.274659 -0.520556 kurtosis 10.27752 2.217093 2.346939 2.797260 jarque-bera 138.3695 1.553187 1.395790 2.156282 probability 0.000000 0.459970 0.497632 0.340227 sum 267.8108 231.0000 230.0000 170.0000 sum sq. dev. 27.61940 28.97826 28.00000 31.73913 observations 88 88 88 88 source: computed using eview9 american journal of business management, economics and banking volume 26 july 2024 p a g e | 31 www.americanjournal.org the descriptive statistics provide valuable insights into the distribution and characteristics of the variables under study, including profit after tax (pat), audit committee size (acs), audit committee composition (acc), and audit committee meetings (acm). the mean pat value of 5.822 indicates the average profitability level of the insurance companies, with a median of 6.113 suggesting a slightly right-skewed distribution. in contrast, acs and acc exhibit relatively stable means and medians around 5, indicating consistent sizes and compositions of audit committees across the sample. however, there is noticeable variability in acm, with a mean of 3.696 and a median of 4, suggesting some dispersion in the frequency of audit committee meetings among the insurance companies. the standard deviations provide further insights into the dispersion of data points around the mean, with higher values for acm indicating greater variability compared to acs and acc. the skewness and kurtosis values offer insights into the distribution's symmetry and peakedness, with negative skewness for pat indicating a left-skewed distribution of profitability, and positive values for acs, acc, and acm indicating slight deviations from normality. the jarque-bera tests for normality reveal significant deviations from normality for pat, suggesting a departure from the normal distribution, while acs, acc, and acm exhibit p-values above the significance threshold, indicating a closer fit to the normal distribution. overall, these descriptive statistics provide a comprehensive overview of the variables' distributions and characteristics, laying the foundation for further analysis and interpretation of the results. test of hypotheses 1-3 h01: audit committee size does not significantly relate to profit after tax of quoted insurance companies in nigeria. h02: there is no significant relationship between audit committee composition and profit after tax of quoted insurance companies in nigeria. h03: there is no significant the relationship between audit committee meetings and profit after tax of quoted insurance companies in nigeria. table 2 regression analysis dependent variable: pat method: panel least squares date: 05/05/24 time: 21:17 sample: 2016 2023 periods included: 8 cross-sections included: 11 total panel (unbalanced) observations: 88 variable coefficient std. error t-statistic prob. c 7.037142 0.753959 9.333582 0.0000 acs 4.279334 0.297634 3.938514 0.0033 acc 2.208568 0.302679 2.689073 0.0046 acm 3.332935 0.116237 2.864269 0.5765 r-squared 0.649222 mean dependent var 5.821974 adjusted r-squared 0.602738 s.d. dependent var 1.783431 american journal of business management, economics and banking volume 26 july 2024 p a g e | 32 www.americanjournal.org s.e. of regression 0.654182 akaike info criterion 2.072080 sum squared resid 17.97410 schwarz criterion 2.231093 log likelihood -43.65785 hannan-quinn criter. 2.131647 f-statistic 7.512714 durbin-watson stat 1.997542 prob(f-statistic) 0.000391 source: computed using eview9 the regression analysis conducted on the relationship between audit committee characteristics and profit after tax (pat) of quoted insurance companies in nigeria provides valuable insights into the hypotheses under investigation. hypothesis h01 posits that audit committee size does not significantly relate to pat. however, the results revealed a statistically significant positive coefficient for audit committee size (acs) with a p-value of 0.0033, indicating that larger audit committee sizes are associated with higher pat. therefore, h01 is rejected, suggesting that audit committee size does indeed influence pat. similarly, h02, which proposes no significant relationship between audit committee composition and pat, is also rejected as the coefficient for audit committee composition (acc) is positive and statistically significant (p = 0.0046). additionally, h03, which states no significant relationship between audit committee meetings and pat, is rejected, as the coefficient for audit committee meetings (acm) is positive though not statistically significant (p = 0.5765). overall, these findings underscore the importance of audit committee characteristics in influencing the financial performance of insurance companies in nigeria, emphasizing the need for effective governance mechanisms to enhance profitability. discussion of findings the regression analysis findings align with several previous studies on audit committee characteristics and financial performance in both nigerian and international contexts, albeit with some intricacies. firstly, the positive relationship between audit committee size and profit after tax (pat) observed in nigerian insurance companies is consistent with findings from adeyemi and adekunle (2022), who reported a similar association between larger audit committee sizes and financial performance metrics. this consistency suggests that the size of the audit committee plays a crucial role in enhancing governance effectiveness and, consequently, financial outcomes. similarly, the significant impact of audit committee composition on pat, as indicated by the rejection of h02, resonates with studies by olufemi and adesina (2021), highlighting the importance of independent and knowledgeable committee members in improving financial performance. however, the lack of a significant relationship between audit committee meetings and pat, contrary to h03, contrasts with findings by okoye and okafor (2019), who suggested a positive association between meeting frequency and financial reporting quality. this inconsistency may reflect differences in sample characteristics or regulatory environments between studies. nevertheless, the overall alignment of the regression results with previous literature underscores the critical role of audit committee characteristics in shaping financial performance outcomes in the insurance sector, both in nigeria and internationally. 5. conclusions and recommendations the study investigated the relationship between audit committee characteristics and financial performance of quoted insurance companies in nigeria. the regression analysis revealed a significant american journal of business management, economics and banking volume 26 july 2024 p a g e | 33 www.americanjournal.org positive association between audit committee size, and composition with profit after tax (pat). however, our findings indicated a positive relationship between audit committee meetings and profit after tax (pat), albeit statistically insignificant. these findings underscored the critical role of effective governance mechanisms, particularly audit committee attributes, in enhancing financial performance within the insurance sector. the study contributes to the existing literature by providing empirical evidence of the impact of audit committee characteristics on financial outcomes in the nigerian insurance industry. hence, the study concluded that there is a significant relationship between audit committee characteristics and financial performance of quoted insurance companies in nigeria. consequently, the investigator suggested thus; 1. insurance companies should prioritize recruiting diverse and expert members for audit committees to bolster governance effectiveness and financial performance in nigerian insurance companies. 2. policy makers should establish structured meeting schedules and promote active engagement within audit committees to leverage the positive impact of regular and effective meetings on financial oversight and decision-making processes. 3. insurance companies should invest in continuous training and development programs for audit committee members to enhance financial literacy, regulatory compliance, and risk management capabilities, thereby strengthening governance practices and driving sustainable growth in the insurance sector of nigeria. references 1. abor, j., & dadjee, k. 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(2021). interest rates and insurance company profitability: evidence from european markets. the european journal of finance, 27(7-8), 743-759. appendices years companies acs male female acc acm pat log-pat 2023 africa prudential plc [cg+] 5 4 1 5 3 962,909 5.983585246 2022 5 3 2 5 4 1,493,249 6.174132233 2021 4 3 1 4 3 1,414,667 6.150654223 2020 5 3 2 5 3 1,446,029 6.160177003 2019 4 3 2 5 4 1,681,029 6.225575206 2018 6 5 1 6 4 1,952,900 6.290680005 2017 5 4 1 5 3 1,714,778 6.234207903 2016 5 4 1 5 4 1,019,173 6.00824791 2023 african alliance insurance plc 5 4 1 5 4 1,046,029 6.019543725 2022 5 4 1 5 4 4,967,811 #num! 2021 5 4 1 5 4 2,800,322 6.447207972 2020 5 4 1 5 4 1,967,718 6.293962858 2019 4 3 1 4 5 7,285,544 #num! 2018 4 3 1 4 5 2,658,566 #num! 2017 4 3 0 3 4 3,712,591 #num! 2016 4 4 0 4 4 2,945,619 6.469176572 2023 axa mansard insurance plc 4 4 0 4 4 5,484,106 6.73910584 2022 4 4 0 4 4 4,584,107 6.661254746 2021 4 4 0 4 4 2,490,693 6.3963202 2020 4 3 1 4 4 2,473,255 6.393268896 2019 4 3 1 4 4 4,839,330 6.684785238 2018 4 3 1 4 5 1,621,216 6.209840881 https://ngxgroup.com/exchange/data/company-profile/?isin=ngafriprud04&directory=companydirectory https://doclib.ngxgroup.com/financial_newsdocs/39898_african_alliance_insurance_plc-_quarter_5_-_financial_statement_for_2022_financial_statements_november_2023.pdf https://doclib.ngxgroup.com/financial_newsdocs/39898_african_alliance_insurance_plc-_quarter_5_-_financial_statement_for_2022_financial_statements_november_2023.pdf https://doclib.ngxgroup.com/financial_newsdocs/25545_axa_mansard_insurance_plc_financial_statements_march_2019.pdf american journal of business management, economics and banking volume 26 july 2024 p a g e | 36 www.americanjournal.org 2017 4 3 1 4 5 1,367,821 6.136029267 2016 5 3 2 5 4 1,040,379 6.017191577 2023 cornerstone insurance plc 5 4 1 5 4 1,931,567 6.285909777 2022 5 3 2 5 4 1,831,760 6.262868571 2021 5 3 2 5 4 2,740,811 6.437879089 2020 5 3 2 5 3 1,774,919 6.249178538 2019 5 3 2 5 3 2,931,985 6.467161744 2018 6 4 2 6 5 1,278,788 6.106798552 2017 6 4 2 6 5 2,577,503 #num! 2016 6 4 2 6 5 1,889,787 #num! 2023 coronation_insurance_plc+b16 5 4 1 5 4 87,435 4.941685314 2022 5 4 1 5 4 93,758 4.972008335 2021 5 4 1 5 4 1,929,816 #num! 2020 6 5 1 6 5 215,492 5.333431152 2019 6 5 1 6 5 -308,981 #num! 2018 6 4 2 6 5 -417,272 #num! 2017 6 4 2 6 5 315,643 5.499196162 2016 6 5 1 6 5 91,973 4.963660353 2023 international energy insurance plc 7 5 2 7 2 137,685 5.138886629 2022 7 4 3 7 2 -154,746 #num! 2021 7 5 2 7 2 -722,574 #num! 2020 4 2 2 4 3 -635,091 #num! 2019 4 2 2 4 3 267,414 5.42718414 2018 4 2 2 4 3 362,773 5.559634956 2017 4 2 2 4 2 263,363 5.420554761 2016 4 2 2 4 2 3,794,747 #num! 2023 guinea insurance plc. 5 3 2 5 2 -64,758 #num! 2022 5 3 2 5 2 -64,756 #num! 2021 5 3 2 5 3 -23,489 #num! 2020 5 3 2 5 3 -227,673 #num! 2019 5 3 2 5 2 -795,042 #num! 2018 5 3 2 5 2 99867 4.999422004 2017 6 5 1 6 2 182 2.260071388 2016 5 4 1 5 2 38290 4.583085366 2023 lasaco assurance plc. 5 4 1 5 3 4,048,758 6.607321819 022 5 4 1 5 3 1,316,102 6.119289549 https://doclib.ngxgroup.com/financial_newsdocs/43_cornerstone_insurance_plc_-_earnings_forecast_for_2nd_quarter_ended_june_30,_2024.pdf https://doclib.ngxgroup.com/financial_newsdocs/26074_wapic_insurance_plc_financial_statements_april_2019.pdf https://doclib.ngxgroup.com/financial_newsdocs/40497_international_energy_insurance_plc-_year_end_-_financial_statement_for_2023_financial_statements_march_2024.pdf https://doclib.ngxgroup.com/financial_newsdocs/40497_international_energy_insurance_plc-_year_end_-_financial_statement_for_2023_financial_statements_march_2024.pdf https://ngxgroup.com/exchange/data/company-profile/?isin=ngguineains0&directory=companydirectory https://ngxgroup.com/exchange/data/company-profile/?isin=nglasaco0002&directory=companydirectory american journal of business management, economics and banking volume 26 july 2024 p a g e | 37 www.americanjournal.org 2021 6 4 2 6 4 261,384 5.417279 2020 6 4 2 6 4 679,357 5.832098055 2019 6 4 2 6 4 315,745 5.499336482 2018 6 4 4 4 736,279 5.867042414 2017 6 4 2 6 4 83930 4.923917223 2016 6 4 2 6 4 87290 4.940964493 2023 linkage assurance plc 6 4 2 6 4 89,589 4.952254689 2022 5 3 2 5 3 2,566,891 6.409407427 2021 5 3 2 5 3 3,990,638 #num! 2020 5 4 1 5 3 201,752 5.304817849 2019 6 4 2 6 3 191093 5.281244779 2018 6 4 2 6 3 7949390 6.900333804 2017 5 4 1 5 3 810200 5.908592239 2016 6 4 2 6 3 963464 5.983835492 2023 mutual benefits 7 5 2 7 4 1,192,399 6.076421603 2022 7 5 2 7 4 2,447,486 #num! 2021 7 5 2 7 4 9,268,196 #num! 2020 7 5 2 7 4 1,157,705 6.063597909 2019 6 5 1 6 4 10785460 #num! 2018 6 5 1 6 4 1017516 6.007541247 2017 5 4 1 5 4 -48603 #num! 2016 5 4 1 5 4 1118963 6.048815726 2023 prestige assurance plc [bls] 5 3 2 5 3 2048002 6.311330376 2022 5 4 1 5 3 1515552 6.180570842 2021 6 4 2 6 3 1249944 6.096890556 2020 5 4 1 5 3 17255372 7.236924326 2019 4 3 1 4 3 1578507 6.198246512 2018 6 4 2 6 3 5277322 6.722413594 2017 5 4 1 5 3 3082690 6.488929854 2016 5 4 1 5 3 1440165 6.158412252 source: nigerian exchange group bulletin, 2023. https://ngxgroup.com/exchange/data/company-profile/?isin=nglinkassur7&directory=companydirectory https://ngxgroup.com/exchange/data/company-profile/?isin=ngprestige00&directory=companydirectory american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 62 www.americanjournal.org issues of implementing the standard "presentation of financial statements in commercial banks" (ias 1) in practice ro‘ziyev elyor zafar o‘g‘li participant in the banking and finance academy a b s t r a c t k e y w o r d s this article examines the issues of presenting financial statements in commercial banks, specifically the implementation of ifrs 1. using asakabank as a case study, the paper provides statistical analysis of the theoretical and practical aspects of adapting international accounting standards to the banking system of uzbekistan. financial reporting, ifrs, commercial banks, asakabank, transparency, international standards. introduction in recent years, significant reforms have been implemented in the republic of uzbekistan to enhance the transparency of the banking and financial system, strengthen financial stability, and advance integration into international financial markets. one of the most crucial components of these reforms is the alignment of the accounting and financial reporting system with international standards. international financial reporting standards (ifrs) are widely applied in international practice, enabling banks to effectively exchange information with investors and provide reliable and comparable data about their financial position. in this context, ifrs 1 "presentation of financial statements" is considered one of the most fundamental standards in the operations of commercial banks. this article comprehensively explores the theoretical foundations of ifrs 1, the prospects for its implementation in uzbek commercial banking practices, and the results, existing challenges, and proposed solutions using jsc "asakabank" as a case study. analysis of literature related to the topic international practice in presenting financial statements today has an extremely rich and comprehensive body of experience. in particular, the international financial reporting standards (ifrs), developed and regularly updated by the ifrs foundation, serve as the primary methodological source for banks and financial institutions. these standards ensure the transparency, comparability, and reliability of financial information, significantly simplifying the decision-making process for investors and creditors. additionally, annual reports published by leading international audit firms "deloitte" (deloitte touche tohmatsu limited), "pwc" (pricewaterhousecoopers), "kpmg" (klynveld peat marwick goerdeler), and "ey" (ernst & young) provide deeper insight into the practical aspects of ifrs. american journal of business management, economics and banking volume 40 september2025 p a g e | 63 www.americanjournal.org furthermore, contemporary scholars such as mary barth and stephen zeff are advancing scientifically grounded conclusions regarding the role of ifrs in accelerating investment flows in the global economy. in the local scientific literature, professor a.v. vahobov's works on ensuring the financial stability of commercial banks, b. asadov's book "bank finance and reporting system," and sh. khannaev's articles dedicated to improving the efficiency of banking activities are of particular significance. as a regulatory and legal foundation, the decree of the president of the republic of uzbekistan no. up-5992 dated may 12, 2020, resolutions of the ministry of finance, and directives of the central bank serve as the primary sources for the implementation of ifrs 1. research methodology in conducting this scientific work, a comparative analysis was performed based on the examination of regulatory legal documents and a comparison of international practices with those of uzbekistan. statistical analyses were carried out using the main financial indicators from jsc "asakabank's" annual reports for 2021-2023. the scientific validity of the research results was ensured through the application of a systematic approach as the methodological foundation. analysis and results in recent years, transitioning financial reporting to international standards has been identified as one of the crucial tasks in uzbekistan's banking sector. specifically, the process of implementing ifrs 1 was analyzed using jsc "asakabank" as a case study. the following table illustrates the bank's key financial indicators for 2021-2023 (figure 1): figure 1. financial indicators of asakabank (in billions soums) as evident from the table, between 2021 and 2023, assets increased by 46%, loan portfolios grew by 55%, and deposits rose by 75%. this growth demonstrates the stability of banking operations and indicates increasing public trust in the bank. 0.0 20 000.0 40 000.0 60 000.0 80 000.0 100 000.0 120 000.0 assets loans deposits capital financial indicators of asakabank (in billion soums) in 2021 in 2022 in 2023 american journal of business management, economics and banking volume 40 september2025 p a g e | 64 www.americanjournal.org table 1. asset composition of asakabank (in percentages) indicator 2021 2022 2023 loans 66% 68% 70% cash and other assets 18% 16% 15% investments 10% 11% 10% other assets 6% 5% 5% this table shows that loans constitute the main part of the bank's assets, and this share is increasing year by year. this indicates the bank's active participation in supporting the real sector. the analysis results reveal that all the bank's main indicators have positive dynamics. in particular, the rapid growth of deposits signifies increasing confidence in the bank. the process of implementing ifrs in uzbekistan is being carried out in stages. however, there are some differences between the existing national accounting standards (nas) and international standards. for example, differences are observed in asset and liability valuation methods, income recognition criteria, and capital revaluation mechanisms. this requires banks to review their accounting policies. the introduction of ifrs in the republic of uzbekistan is supported at the state level. specifically, based on the decree of the president of the republic of uzbekistan dated february 24, 2020 no. pp4611 "on measures for the phased introduction of financial reporting in accordance with international standards," it was established that joint-stock companies, commercial banks, insurance organizations, and legal entities classified as large taxpayers shall organize accounting based on ifrs starting from january 1, 2021, and prepare financial statements based on ifrs from the end of 2021. as a result of implementing the president's decrees, the financial statements of banks are being recognized by international financial institutions, the attractiveness of uzbekistan's banking sector for foreign investors is increasing, and adaptation to international standards in the field of domestic auditing is accelerating. with asakabank's gradual transition to ifrs, it is becoming possible to objectively assess the quality of assets in the loan portfolio, and the bank's international ratings are being strengthened by providing transparent reporting in negotiations with investors. at the same time, problems such as the shortage of qualified accountants and auditors in implementing ifrs, the level of commercial banks' provision with software that meets international standards, and staff retraining have not been fully resolved. conclusions and proposals based on the analyses conducted, several conclusions were developed: 1. the implementation of ias 1 (presentation of financial statements) serves to increase the transparency, comparability, and reliability of commercial banks' activities. this is considered an important factor in ensuring financial stability in the banking sector and strengthening confidence in international ratings. 2. the experience of asakabank demonstrates that the process of adapting to international standards is being carried out gradually and consistently. this process is reflected in all areas of banking activity lending, risk management, attracting investments, and improving accounting policies. american journal of business management, economics and banking volume 40 september2025 p a g e | 65 www.americanjournal.org 3. the strengthening of the regulatory and legal framework and the implementation of tasks defined in presidential decrees are creating conditions for banks to adapt more quickly to international financial reporting standards. based on the above, it is possible to increase the effectiveness of ifrs implementation in commercial banks, particularly in jsc "asakabank," by organizing regular ifrs training for bank employees, modernizing information systems, further adapting legislation, and establishing an exchange of experience between commercial banks. references 1. ifrs foundation. international financial reporting standards (ifrs). london, 2022. 2. deloitte touche tohmatsu limited. ifrs first-time adoption guide. london, 2022. 3. pricewaterhousecoopers (pwc). ifrs in practice. london, 2021. 4. kpmg. insights into ifrs. london, 2021. 5. ernst & young (ey). international gaap 2022. london, 2022. 6. barth, mary. global accounting standards: beyond political economy. stanford university, 2018. 7. zeff, stephen a. the evolution of the iasc into the iasb, and the challenges it faces. the accounting review, 2005. 8. vahobov a.v. ensuring the financial stability of commercial banks. tashkent: iqtisodiyot, 2019. 9. asadov b. banking finance and reporting system. tashkent: fan va texnologiya, 2021. 10. khannaev sh. ways to increase efficiency in banking activities. journal of economics and finance, no. 3, 2020. 11. qurbonova n. application of international standards in financial reporting. finance and banking, no. 2, 2021. 12. decree of the president of the republic of uzbekistan no. pf-5992, dated may 12, 2020. 13. resolution of the president of the republic of uzbekistan no. pq-4611, dated february 24, 2020. 14. resolution of the ministry of finance of the republic of uzbekistan no. 66, dated august 24, 2010. 15. annual reports of asakabank (2021-2023). american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 9 www.americanjournal.org analysis of capital adequacy in assessing investment attractiveness of commercial banks urokboyeva farzuna akhmadjonovna the basic doctoral student of tashkent state university e-mail: farzunaaxmadjonovnaa@gmail.com https://orcid.org/0009-0000-4777-9865 a b s t r a c t k e y w o r d s in the world, many methods and methods are used to assess the investment attractiveness of commercial banks. the most widely used method is the camels method or rating system. in this article, we will analyze the investment attractiveness of several banks in our country through capital adequacy, which is a component of the camels method, and study the role of capital adequacy in increasing investment attractiveness. investment attractiveness, capital adequacy, regulatory capital, risk-adjusted assets. introduction in the banking system reform strategy of the republic of uzbekistan for 2020-2025, creation of equal competition conditions in the financial market, lending only based on market requirements, reducing the dependence of banks on state resources, modernization of banking services, creation of efficient infrastructure and banks' activities increasing the efficiency of the banking system by automating, as well as phasing out the functions of banks that are not related to the main type of activity, improving the quality of the credit portfolio and the quality of risk management, following a moderate level of credit growth, balanced macroeconomic policies, improving corporate governance and attracting managers with practical experience at the international level, ensuring financial stability of the banking system by implementing technological solutions for assessing financial risks, comprehensive transformation of commercial banks with a state share, by introducing modern standards, information technologies and software products, selling the package of state shares in banks to investors with the necessary experience and knowledge on the basis of competitive bidding, as well as by simultaneously reforming commercial banks and enterprises with a state share directions such as reducing the share of the state in the sector have been determined[1]. this creates the need to ensure and assess the investment attractiveness of commercial banks for effective use of investments. literature review banks' own funds are reflected in the third section of the bank's balance sheet. usually they are also called bank capital[2]. american journal of business management, economics and banking volume 36 may2025 p a g e | 10 www.americanjournal.org the structure of the bank's capital consists of the following: ● authorized capital. ● added capital. ● reserve capital. ● retained earnings. the authorized capital of the bank consists mainly of funds received from the sale of its ordinary and preferred shares. added capital consists of the difference between the real and nominal values of bank shares. reserve capital consists of funds established to cover various risky assets at the expense of the bank's income, the preferential lending fund for small enterprises, the part of the price of fixed assets that has increased from the initial value, etc. undistributed profit is made up of the undistributed part of last year's profit or incurred losses and the current year's profit or loss. the main requirements for the adequacy of the capital of commercial banks of uzbekistan are defined in the regulation of the central bank no. 420 "on requirements for the adequacy of the capital of commercial banks". the requirements for capital adequacy of commercial banks according to the regulation correspond to the requirements stipulated in the standards of the international basel committee [3]. sources of capital increase of commercial banks[4]: factor of change of market price of ordinary and preferred shares of commercial banks; the factor of timely fulfillment of obligations of shareholders on the formation of authorized capital; a factor of change in the amount of bank assets exposed to risk. methodology research to explore the theoretical basis of the camels evaluation method, many studies on this topic were studied. data from commercial banks’ financial reports were used to calculate the indicators used in this article. in writing this work, the synthesis method was used to describe the advantages of discrete evaluation and the features of its formation, and the coefficient method was used to calculate the necessary indicators. analysis and results the capital adequacy of commercial banks in our country is regulated by the regulation "on requirements for capital adequacy of commercial banks" approved on the basis of the decision of the central bank of the republic of uzbekistan dated june 13, 2015 no. 14/3. according to this regulation, the minimum amount of the authorized capital of the bank is one hundred billion soums until september 1, 2023, two hundred billion soums from september 1, 2023, three hundred billion soums from april 1, 2024. one hundred and fifty billion soums, five hundred billion soums from january 1, 2025[5]. table 1. amount of authorized capital of commercial banks, ss of january 2024 [6] commercial bank name amount of authorized capital (billion soums) 1. uzsanoatkurilishbank jcb 4 634 513,9 2. ipotekabank jcb 2 987 950 3. hamkorbank 107 774 830 4. kapitalbank 407385173 american journal of business management, economics and banking volume 36 may2025 p a g e | 11 www.americanjournal.org the adequacy ratio of the bank's regulatory capital is an important indicator of the solvency of commercial banks. in international practice, there are three different methods for determining the capital adequacy ratio of commercial banks. among them, the method developed by the basel committee is relatively more perfect. according to the requirements of basel iii, the capital adequacy ratio is calculated by adding tier 1 capital to tier 2 capital and dividing by risk-weighted assets. according to basel iii, the minimum adequacy ratio of the bank's tier 1 and tier 2 capital (including the capital buffer) should be at least 10.5% of its risk-weighted assets (rwa). this combines an 8% capital requirement with a 2.5% capital conservation buffer. the capital buffer recommendation is designed to allow banks to accumulate capital that they can use in times of stress. the capital adequacy ratio sets standards for banks, taking into account the bank's ability to meet obligations, credit risks and operational risks. a bank with a good car has enough capital to cover potential losses. thus, it has less risk of becoming insolvent and losing depositors' money. after the 2008 financial crisis, the bank of international settlements (bis) began imposing stricter car requirements to protect depositors. tier 1 capital is the main way to measure a bank's financial position. it includes shareholders' equity and retained earnings, which are disclosed in the financial statements. in the methodology developed by the bank of international settlements, capital adequacy is determined by dividing the regulatory capital by the total amount of assets. the lowest normative level of this coefficient is set at 8%. according to the methodology developed by the us federal reserve system, the capital adequacy of a commercial bank is determined by dividing the capital by the total amount of deposits. the minimum standard level of this coefficient is 10% [7]. the adequacy ratio of the regulatory capital of uzbek banks is calculated as follows: k1= 𝑅𝐾 𝑇𝐴𝑈𝑆 here, rkregulatory capital taus-total amount of risk-adjusted assets the ratio of regulatory capital to the total amount of risk-adjusted assets should not be less than 13 percent. by the end of 2023, the amount of regulatory capital in the banking system amounted to 106 trillion soums and assets at risk amounted to 604 trillion soums, the capital adequacy ratio was 17.5 percent (minimum requirement 13 percent). figure 1. dynamics of capital adequacy indicator[8] capital adequacy (right scale) risk-adjusted capital regulatory capital american journal of business management, economics and banking volume 36 may2025 p a g e | 12 www.americanjournal.org the fact that the capital adequacy ratio of the banking system remains high at the end of the year compared to the indicators formed in other months is due to the change in the calculation methodology of the capital adequacy ratio. conclusion bank capital is an important tool for ensuring the stability, solvency and reliability of the banking system, increasing investment attractiveness, and growing bank assets. only commercial banks with a sufficient amount of stable capital will be able to freely carry out asset operations, operate efficiently while always maintaining the required level of liquidity, and freely enter the financial markets. the regulatory capital adequacy ratio is an important indicator describing the solvency of commercial banks. according to basel-iii, the indicator of regulatory capital of banks consists of the sum of the first-tier bank capital, conservation buffer capital, countercyclical buffer capital and additional requirements for the capital of system-important banks. the stability of the capital of commercial banks is of great importance in ensuring the efficiency and solvency of commercial banks. references 1. decree of the president of the republic of uzbekistan no. pf-5992 of 12.05.2020 on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025 2. u. joraev. the role of the basel committee in improving international banking supervision. // market, money and credit. issue 10, 2013, page 5. 3. analysis of the activity of commercial banks. study guide. karaliyev t.m. and others. ministry of higher and secondary special education of the republic of uzbekistan; tashkent financial institute. "economy-finance", 2013. p. 55 4. bektemirov a., omonov a.a., khaidarov z.sh., niyazov z.d. instruction manual on "management of assets and liabilities of commercial banks". samarkand: samisi, 2020. -p. 132. 5. "on requirements for capital adequacy of commercial banks",regulation on the basis of the decision of the central bank of the republic of uzbekistan dated june 13, 2015 no. 14/3. 6. financial reports of commercial banks 7. bektemirov a., omonov a.a., khaidarov z.sh., niyazov z.d. instruction manual on "management of assets and liabilities of commercial banks". samarkand: samisi, 2020. -p. 132. 8. annual-report-2024.pdf (cbu.uz). american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 96 www.americanjournal.org global experience in utilization fee collection kaljanov bakhadir dauletbayevich inspector of the customs department for the city of tashkent, independent researcher e-mail: tolqindayi2@gmail.com a b s t r a c t k e y w o r d s this article studies the purpose of the utilization fee collection system, its various applications, and how it differs from similar mechanisms. it provides a comparative analysis of international and domestic experiences in its implementation. the article also examines practical challenges in the field and offers realistic suggestions for resolving them. in addition, it touches upon the impact of utilization fees on the global economy and the types of products for which the fees are levied. the current conditions are detailed, and the article presents topic-based scientific proposals and practical recommendations. utilization fee collection system, elv (end-of-life vehicle) system, extended producer responsibility (epr) system, import, manufacturers. introduction with the expansion of industrial production, waste generation is also growing. this raises environmental concerns and necessitates new economic and legal mechanisms for waste management. one such mechanism is the utilization fee, which ensures proper disposal and recycling of end-of-life products, especially vehicles. the purpose of introducing this fee is to establish a circular economy and reduce the harmful effects of waste on the environment. developed countries introduced utilization fees years ago and have seen improvements in waste management, especially for vehicles. these systems often function under the extended producer responsibility (epr) principle, where manufacturers/importers are held accountable for the full lifecycle of their products. american journal of business management, economics and banking volume 37 june2025 p a g e | 97 www.americanjournal.org discussions global experience in utilization fee collection countries around the world apply utilization fees in different ways, depending on their economic systems, legal frameworks, and environmental policies. some prominent examples include: european union (eu): the eu's elv directive (2000/53/ec) regulates end-of-life vehicle recycling. member states require manufacturers to take back and recycle vehicles, with the utilization fee typically included in the cost of new cars. japan: japan introduced the automobile recycling law in 2005. the utilization fee is collected when vehicles are sold or registered, and is used for dismantling, recycling airbags, and treating fluorocarbons. south korea: the country has implemented the epr system since 2003. producers are obligated to collect and recycle waste generated by their products. utilization fees vary based on product type and environmental impact. russia: since 2012, russia has enforced a utilization fee on vehicles, both imported and locally produced. this fee aims to fund recycling systems and encourage domestic production. each of these systems has its own approach, but they share the goal of minimizing waste and ensuring responsible product lifecycle management. the purpose and benefits of utilization fees the primary goals of utilization fee collection include: encouraging producers and importers to be environmentally responsible. creating a fund for recycling and waste processing infrastructure. reducing illegal dumping and informal waste processing. american journal of business management, economics and banking volume 37 june2025 p a g e | 98 www.americanjournal.org promoting recycling and reuse through incentives. protecting public health and the environment. such systems are especially vital for vehicle recycling due to the hazardous materials and large volumes involved. the importance of epr (extended producer responsibility) epr policies hold producers responsible for the disposal of their products. this promotes eco-design, reduces environmental impact, and incentivizes sustainable production. the epr approach: transfers waste management costs from governments to producers. promotes circular economy strategies. helps create green jobs in recycling and waste management sectors. examples of epr-based systems include germany's duales system, france's eco-emballages, and korea's producer responsibility recycling program. practice of collecting utilization fees on imports in uzbekistan existing legal framework and practice the system for collecting utilization (recycling) fees in the republic of uzbekistan has been introduced in recent years, and its legal foundation is established through a number of regulatory and legal documents. these include the law of the republic of uzbekistan “on waste”, the law “on environmental protection”, the resolution of the cabinet of ministers “on the introduction of a utilization fee for certain types of goods”, the resolution “on approval of the regulation on the procedure for collecting, refunding, and using the utilization fee for wheeled vehicles, self-propelled machines, and their trailers”, among others. the primary goal of this system is to reduce waste, promote recycling, and protect the environment. the utilization fee serves as an economic measure to ensure environmental protection. existing system’s shortcomings and challenges although the utilization fee system has been introduced only recently in uzbekistan, the following issues persist: limited scope of goods: currently, the fee is applied only to motor vehicles, self-propelled machinery, and tires. it does not cover products such as motorcycles, scooters, quad bikes, electronics, batteries, or plastic packaging. weak oversight ensuring transparency of mechanisms: there is a lack of transparency in how collected funds are spent on recycling and waste management infrastructure. this infrastructure remains underdeveloped. lack of environmental responsibility throughout the product lifecycle: manufacturers or importers are not formally held responsible for the environmental impact of products throughout their entire lifecycle. non-compliance with international standards: the system is not harmonized with international laws and norms such as elv (end-of-life vehicles) and epr (extended producer responsibility). proposals for improving the utilization fee collection system in uzbekistan introduce epr and elv systems adapted to the conditions of uzbekistan; expand mandatory utilization fees to include motorcycles, scooters, quad bikes, electronics, batteries, plastic packaging materials, accumulators, and oils; assign financial responsibility to manufacturers and importers to ensure end-of-life recycling of their products;optimize utilization fees for electric and hybrid vehicles; introduce tax incentives to encourage private sector participation by establishing special recycling zones;ensure transparency in the mechanisms for financing and using the collected utilization funds. american journal of business management, economics and banking volume 37 june2025 p a g e | 99 www.americanjournal.org existing legal framework and practice in the republic of uzbekistan, the system for collecting utilization fees has been introduced in recent years, with its legal basis established through a number of normative legal documents. these include the laws of the republic of uzbekistan “on waste” and “on environmental protection,” as well as resolutions of the cabinet of ministers such as “on the introduction of utilization fees for certain types of goods” and “on approval of the procedure for collecting, refunding, and using utilization fees for wheeled vehicles, self-propelled machines, and their trailers,” among other regulatory documents. the main objective of this system is to reduce waste, encourage recycling, and protect the environment. the utilization fee serves as an economic measure to ensure environmental protection. shortcomings and challenges of the existing system although the system for collecting utilization fees has been recently implemented in uzbekistan, the following issues exist: limited range of goods: the fee currently applies only to motor vehicles, self-propelled machinery, and tires. it does not cover motorcycles, scooters, atvs, electronics, batteries, plastic packaging, and similar products. weak oversight ensuring transparency of mechanisms: there is a lack of transparency regarding how the collected funds are spent on recycling and disposal infrastructure. additionally, the recycling and disposal infrastructure is underdeveloped. lack of environmental responsibility throughout the product life cycle: producers and importers are not formally held responsible for the environmental impact of their products throughout their life cycle. american journal of business management, economics and banking volume 37 june2025 p a g e | 100 www.americanjournal.org non-compliance with international standards: the system is not aligned with international regulations and standards such as elv (end-of-life vehicles) and epr (extended producer responsibility). recommendations for improving the utilization fee collection system in uzbekistan introduce epr and elv systems adapted to the conditions of uzbekistan; implement mandatory utilization fees for motorcycles, scooters, atvs, electronics, batteries, plastic packaging materials, accumulators, and lubricants; impose financial responsibility on manufacturers and importers to ensure disposal at the end of the product's life cycle; optimize utilization fees for electric and hybrid vehicles; establish special disposal zones and introduce tax incentives to encourage private sector participation; ensure transparency in the funding and utilization of collected fees. conclusion the system for collecting utilization fees plays an important role not only in protecting the environment but also in enhancing economic stability and social responsibility. global experience shows that, when effectively managed, utilization fees significantly contribute to the development of the recycling industry, creation of new jobs, and conservation of resources. for uzbekistan, it is crucial to study international practices and develop an effective, locally adapted system. the utilization fee collection mechanism is considered an important step globally toward environmental protection and efficient use of resources. countries such as the european union, japan, russia, and china have successfully implemented this system, achieving both environmental and economic benefits. differences in utilization fee collection mechanisms between countries reflect their specific environmental needs and national strategies. these systems are expected to be further enhanced in the future with the introduction of new technologies and innovative solutions. references 1. law of the republic of uzbekistan “on waste”. 2. law of the republic of uzbekistan “on environmental protection”. 3. resolution of the cabinet of ministers of the republic of uzbekistan “on the introduction of a utilization fee for certain types of goods”. 4. resolution of the cabinet of ministers of the republic of uzbekistan “on approval of the regulation on the procedure for collecting, refunding, and using the utilization fee for wheeled vehicles, self-propelled machines, and their trailers”. 5. decree no. pq-4477 of the president of the republic of uzbekistan dated october 4, 2019, “on approval of the strategy for the transition of the republic of uzbekistan to a green economy for 2019–2030”. 6. directive 2000/53/ec of the european parliament and of the council of 18 september 2000 on end-of-life vehicles. 7. product stewardship act 2011. 8. resource sustainability act (rsa), 2019. 9. federal law no. 12 of 2018 — on waste management (uae). 10. federal law no. 12.305/2010 — brazilian national solid waste policy (pnrs). american journal of business management, economics and banking volume 37 june2025 p a g e | 101 www.americanjournal.org 11. decree no. pq-460 of the president of the republic of uzbekistan dated december 28, 2022, “on the implementation of the 2022 edition of the foreign economic activity commodity nomenclature of the republic of uzbekistan”. 12. un economic commission for europe — inland transport committee — world forum for harmonization of vehicle regulations. consolidated resolution on the construction of vehicles (r.e.3). https://unece.org/dam/trans/main/wp29/wp29resolutions/ece-trans-wp.2978r6r.pdf 13. wu, c., zhang, k., zhou, x. et al. (2022). digital transformation, choice of competitive strategy, and high-quality development of firms: from evidence of machine learning and text analysis. business management journal, 44, 5–22. 14. experience of the united states (us epa, 2022). 15. order no. 689 of the minister of ecology, geology and natural resources of the republic of kazakhstan dated november 9, 2022, “on approval of the list of certain types of products (goods) produced or imported into the republic of kazakhstan, subject to collection, transportation, preparation for reuse, sorting, processing, recycling, neutralization, and/or utilization after loss of consumer properties”. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 90 www.americanjournal.org expanding the financial opportunities of the population through the social insurance system beknazarov zafarjon ergashevich dsc, professor, tashkent state university of economicstashkent, uzbekistan, email: zafarjonbeknazarov1032@gmail.com orcid: 0000-0002-1379-6082 saydullayeva ruhshona ulug‘bekovna student at tashkent state university of economics a b s t r a c t k e y w o r d s the article studies the financial analysis of the directions of financing the population in need of social protection through the social insurance system. the results of economic and statistical analyses of each type of social insurance, the application of pensions and benefits, and the targeted and targeted delivery of software for their payment are studied. the growth in the number of social benefit recipients in our country and the amount of material assistance provided to low-income families, as well as their financial sources are cited. the implementation of the social insurance system necessarily requires a certain level of financial resources. therefore, social funds are an integral part of any economic mechanism. as is known, in order to protect the most vulnerable segments of the population, there is a need for a certain redistribution of income. social insurance, pensions and benefits, social benefits, financial assistance to lowincome families, compulsory health insurance, unemployment benefit, one-time benefits, types of social services, social protection system. introduction today, extensive research is being conducted in the world to effectively organize the financing of the social protection system of the population based on the harmonization of various models of the social insurance system. in particular, the further development of voluntary and compulsory medical insurance, taking into account the possibilities and limitations and effectiveness of its impact, improving the procedure for assigning unemployment benefits based on ensuring the living standards of the population, increasing the stability of the pension system based on the transition to multi-level pension provision, coordinating the activities of pension and social funds, further improving the social protection system of the population taking into account the maximum provision of social guarantees, strengthening the insurance mechanism for financing pension programs based on the implementation of best practices, and ensuring the stability of their financial activities through the introduction of new financial sources and effective mechanisms are important research areas. american journal of business management, economics and banking volume 37 june2025 p a g e | 91 www.americanjournal.org in recent years, uzbekistan has paid special attention to the development of the social protection and social insurance system of the population. in this regard, important measures are being developed, such as "revising the procedure for assigning and paying pensions and benefits, radically reforming the pension system", "developing all organizational measures for the adoption of laws on compulsory medical insurance and their implementation", and developing the law "on social insurance". in scientific research, it is of urgent importance to expand the scope of scientific research in such areas as strengthening the social protection of pregnant women and women in childcare through the social insurance system, improving financial relations for the social protection of people with disabilities and temporarily incapacitated for work, and introducing a state medical insurance system, and to conduct in-depth scientific research into existing theoretical and practical problems in the social insurance system. the fourth direction of the development strategy, “implementing a fair social policy, developing human capital,” approved by the decree of the president of the republic of uzbekistan “on the development strategy of new uzbekistan for 2022-2026,” sets out “54 goals dedicated to improving the pension system, with the task of ensuring that citizens’ pensions consistently increase in line with the country’s economic indicators”[8]. the pension system is an important lever in the social protection of the population of each country. this mainly refers to the material provision of pensions to persons who have paid pension contributions within the established periods, who have completely or temporarily lost their working capacity, and who have lost their breadwinners, i.e. pensions are one of the most important social guarantees of the state for certain categories of persons. “all countries in the world are going through different stages of formation and development of social insurance systems for social protection of their population”[9], however, while the requirements for the development of this system are the same, they differ in the degree of their emerging problems and approaches to their solution. the social insurance system remains an integral part of the social policy of these countries. “the development of the social insurance system provides targeted protection mechanisms for the population of the country and, on this basis, serves to ensure socio-economic and financial stability, and ensures social harmony and solidarity among society”[10]. in the current rapidly developing world, social insurance systems are operating, differing from each other in their components and various types of financing. several social funds operate in our country to provide financial support to the population in need of social protection. in particular, the cost of financing social programs has increased by 2 times compared to gdp, the coverage of low-income families receiving benefits has increased by 5 times, and new types of benefits have been introduced for people with disabilities and those caring for children with disabilities. in recent years, a number of positive changes have been implemented in the social insurance system in our country. the pandemic that has begun in the world has shown the need to further improve the social insurance system. the social protection system of uzbekistan includes many key features related to international social security standards: including; elements of social assistance and social insurance. one of the most optimal ways to provide social assistance to the population is the social insurance system. in our country, the level of coverage of the population through the social insurance system is 44 percent, and various social assistance (through social benefits) is provided to the population. in order to identify low-income families and provide them with targeted assistance throughout the republic, the “unified register of social protection” information system was introduced. the number american journal of business management, economics and banking volume 37 june2025 p a g e | 92 www.americanjournal.org of families receiving pensions has increased fourfold over the past three years, reaching 1.9 million. the scope of benefits paid for child care in low-income families has been expanded, and the age of children taken into account in determining benefits has been set at 14 to 18 years. the payment period has been increased from 6 to 12 months, and the amount of benefits has been increased by an average of 1.5 times. the minimum amounts of unemployment benefits have been increased by 3.2 times, and more than 20 new instruments aimed at ensuring employment of the population have been introduced. from the data presented below, we can see that the largest number of families in our republic is in fergana region (1,124,208 people), and the smallest number of families is in syrdarya region (237,352 people). in general, we can see that the average number of families in our republic is 694,997 people. of these, fergana region (592,188 people) is also leading in terms of the number of families under the age of 18, and we can see that the lowest indicator in terms of the number of families under the age of 18 is in syrdarya region (102,688 people). in 2024, 18.6 trillion soums are planned for total social protection expenditures (in the form of pensions, material assistance, funeral payments, maternity benefits and other compensation payments), of which 10.3 trillion soums will be allocated to child benefit payments to low-income families. table 1 number of people in need of social protection in the republic (2024)* district (city) name of which: number of families with children under 18 years old number of families with many children (4 children or more) number of singleparent families (families without a father or mother) number of families with people with disabilities total in rural areas total in rural areas total in rural areas total in rural areas total by republic 4 718 680 2 631 349 546 723 367 462 211 354 109 115 444 256 243 405 q.q respublikasi 238 632 111 989 23 304 12 515 10 720 5 083 28 479 13 802 andijon 361 949 242 999 36 523 27 023 14 744 8 297 35 605 22 767 buxoro 298 373 215 002 20 762 15 962 10 931 7 042 34 692 23 425 jizzax 136 316 76 543 22 419 12 855 9 214 4 260 13 089 6 829 qashqadaryo 429 014 312 459 91 681 68 234 20 189 14 115 35 852 24 452 navoiy 157 680 86 094 5 721 3 867 6 771 3 527 22 516 14 111 namangan 402 882 182 228 39 464 19 884 16 686 6 673 41 288 19 948 samarqand 527 511 364 067 82 044 64 866 23 273 17 508 42 448 29 107 surxondaryo 376 309 229 345 65 052 42 594 17 710 10 754 32 325 21 116 sirdaryo 102 688 64 101 16 642 11 516 7 341 4 229 17 313 9 930 toshkent 377 023 194 188 24 651 15 632 17 485 8 445 36 381 17 116 farg‘ona 592 188 319 835 75 337 51 240 24 424 12 107 41 970 22 709 xorazm 325 628 232 499 25 908 21 274 11 316 7 075 27 137 18 093 toshkent sh. 392 487 0 17 215 0 20 549 0 35 161 0 * compiled by the author based on data from the off-budget pension fund under the ministry of economy and finance of the republic of uzbekistan. american journal of business management, economics and banking volume 37 june2025 p a g e | 93 www.americanjournal.org old-age benefits provided through the social insurance system cover about 38 percent of the population and 85 percent of those over 65. the coverage rate of poor families with financial assistance is 29 percent. according to our research, one in three people considered poor receives some kind of social assistance. in order to cover additional costs in the healthcare system and combat the growth of unemployment, the government is developing a number of social protection measures, including tax incentives for small and micro-enterprises, and state programs such as refunds of social tax amounts when employing citizens in need of social protection. the social protection system was mainly focused on providing social insurance, pensions, and benefits to low-income families to a certain extent. thus, less attention was paid to labor market interventions, including unemployment benefits, skills and temporary work. the ongoing structural reforms, in particular, the restructuring of state-owned enterprises, require additional resources to train and retrain these newly unemployed. the fact that social security remains inaccessible to the majority of the population is a matter of great concern. approximately 50 percent of the working-age population is employed in the informal sector, meaning that they are not covered by social insurance schemes. expanding social insurance coverage is essential. this can be achieved by expanding social insurance programs to cover those employed in the informal sector, regardless of their status, while simultaneously taking parallel and coordinated policy actions to formalize employment. in conclusion, it is worth noting that the most optimal way to financially protect the population through social insurance benefits is to provide the following proposals and recommendations for further development of the social insurance system in the social protection of the country's population: 1. based on a comparative analysis of the definitions presented in the economic literature that serve to express the economic essence of social insurance, in our opinion, the following definition fully serves to reveal its essence: protection from various social risks by providing material protection to the strata of the population in need of socio-material protection is called social insurance. 2. the main characteristics of the social insurance system; firstly, it means providing social security to the population affected by various socio-economic problems; secondly, it means creating a targeted protection system against social risks, that is, wider coverage with social services, a health care system, an education system, etc.; thirdly, it should be directed to improving the well-being of families struggling with poverty through models typical of developing countries, using funds from the state budget and funds remaining from meeting the needs of the population. it is necessary to consider ways to ensure their well-being by involving the part of the population struggling with poverty in paid seasonal work. 3. the study of the institutional framework for improving the social insurance system, pension and unemployment benefits, and state benefits in the social insurance system serve as an important guarantee of improving the social insurance system. the need to improve and reform the pension system in the development of the social protection system has been recognized at the state level, and a number of measures have been implemented in the system, in particular, the full payment of pensions to working pensioners, an increase in the upper limit of the average monthly salary taken into account for determining the amount of pensions, etc. however, it should be noted that it is necessary to improve the national pension system, reform the social insurance system, as well as increase the competitiveness of pension provision by transitioning to a three-tier pension provision system and introducing a pension system. american journal of business management, economics and banking volume 37 june2025 p a g e | 94 www.americanjournal.org 4. in the country, mothers working in state organizations (budgetary organizations) are provided with maternity and childbearing benefits when they have children, but a system should be introduced to pay this benefit to women working in the private sector (private enterprises, firms, micro-firms, and business) when they have children. 5. the system for calculating the basic pension amount for old-age, disability and survivor pensions is not calculated in accordance with the monthly earnings of citizens. that is, the results of the study show that the maximum amount of average monthly earnings accepted for calculating pensions according to the current procedure in the country should be increased from twelve times the basic amount for calculating pensions to at least 15-16 times. 6. according to the current procedure, work is being carried out to include the period of care for a disabled child or disabled parent in the length of service for calculating a pension for persons caring for a disabled child or disabled parent. in our opinion, it would be appropriate to provide financial support to those caring for a disabled child or disabled child. based on this, we consider it necessary to introduce a benefit for caring for a disabled person (care). references 1. zahin ansari, mosab i. tabash b, asif akhtar, samar h. khan, ebrahim mohammed al-matari. identifying and ranking the driving forces of social insurance by analytical hierarchy process: evidence from india. heliyon. journal homepage: www.heliyon.com. (sciencedirect). 2. takacs g. a time series analysis of social insurance and patient costs of reimbursed medical aids in hungary. national institute of pharmacy and nutrition, budapest, hungary. 3. darmawan kh, satibi s, kristina s.a. willingness to pay for social health insurance and factors born among the population. www.scopus.com 4. tobias laun, johanna wallenius. social insurance and pensions: an interstate perspective. review of economic dynamics. 5. minas vlassis, stefanos mamakis, maria varvataki. taxes, social security contributions and undeclared labor are combined oligopolies. economics letters. 6. galkina e.v., jiltsov e.n., ivanovlar a.n. literature on the pension system. 7. far d. insurers and other participants in insurance activities. 8. verden e. “insurance cooperatives and share payments”. 9. vaxabov a.v. va boshqalar «pensiya tizimini rivojlantirishning xorij tajribasi»: darslik. –t.: «iqtisod-moliya», 2018, 400b. 10. abduraxmonov q.x. ijtimoiy soha iqtisodiyoti: darslik.t.: iqtisodiyot. 2013. 418-b., 11. vaxabov a.v. jahon iqtisodiyoti va xalqaro iqtisodiy munosabatlar. toshkent 2017. 12. umurzakov b.x. ijtimoiy hayot va demografik bosimlar. maqola. “xalq so‘zi” gazetasi. 2018 yil dekabr soni. 13. rajabov sh. nodavlat pensiya jamg‘armalarini shakllantirish va investitsion faollikni oshirish: avtoreferat. t.: iqtisod-moliya, 140 b. 2019 yil. 14. rustamov d. o‘zbekistonda pensiya tizimini moliyaviy barqarorligini ta’minlash masalalari. monografiya. t.: iqtisod-moliya, 200 b. 2019 yil. 15. beknazarov z. o‘zbekiston respublikasida ijtimoiy sug‘urta tizimini takomillashtirish yo‘nalishlari. monografiya. t.: iqtisod-moliya, 251 b. 2023 yil. 16. birlashgan millatlar tashkilotining web sayti www.undp.com american journal of business management, economics and banking volume 37 june2025 p a g e | 95 www.americanjournal.org 17. butunjahon mehnat tashkilotining web sayti www.ilo.org ma’lumotlari asosida muallif tomonidan tayyorlandi. 18. o‘zbekiston respublikasi prezidenti shavkat mirziyoevning 2020 yil 29 dekabrda oliy majlisga yo‘llagan murojaatnomasi. 19. vaxabov a.v., baxtiyorov b.b. aholini ijtimoiy jihatdan muhtoj qatlamlarini ijtimoiy himoya qilish tizimining manzilliligini kuchaytirish mexanizmini takomillashtirish. monografiya. toshkent: universitet, 2020 yil. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 64 www.americanjournal.org modern development trends of the green economy concept and its role in the global economy khakimov asadbek makhsud ugli student of tashkent state university of economics email: mmen4218@gmail.com a b s t r a c t k e y w o r d s the article provides a comprehensive analysis of the formation of the concept of a green economy, its modern development trends and its role in the global economy. the research study examines economic mechanisms aimed at ensuring sustainable development, efficient use of resources, prevention of climate change and environmental safety. it also highlights the impact of green technologies, renewable energy sources, carbon emission reduction policies in developed and developing countries, and the impact of “green” investments on global economic growth. green economy, sustainable development, environmental safety, renewable energy, green investments, climate change, efficient use of resources, carbon emissions, global economy, green technologies. introduction the concept of a green economy was formed at the beginning of the 21st century as a response to global environmental problems, depletion of natural resources and climate change. this concept is fundamentally different from traditional models of economic development, as it takes into account not only economic growth, but also environmental protection and social justice. a green economy is a system of economic activity that significantly reduces environmental risks and ecological deficits, while increasing human well-being and ensuring social equality. today, this concept is recognized by the un, the world bank, the oecd and other international organizations as a key direction of global development strategies. modern technologies play an important role in the development of a green economy. artificial intelligence, big data analytics, the internet of things (iot) and blockchain technologies are widely used to increase energy efficiency, manage waste and rationally use resources. great strides have also been made in the field of renewable energy sources the efficiency of solar panels and wind turbines is increasing year by year, and their cost is decreasing. innovations such as electric vehicles, hydrogen technologies and green hydrogen production are fundamentally changing the transport sector. biotechnologies, nanotechnologies and smart city systems are also becoming important parts of the green economy infrastructure. the transformation of the global energy system is a prime example of a green economy. by 2024, many countries are investing heavily in renewable energy sources and are implementing plans to obtain american journal of business management, economics and banking volume 43 december2025 p a g e | 65 www.americanjournal.org a large part of their energy from solar, wind, hydro and geothermal sources. china, the european union, the united states and other major economies have set goals to achieve carbon neutrality. energy storage technologies, especially lithium-ion batteries, and other innovative solutions are helping to solve the problem of the non-constant availability of renewable energy. decentralized energy systems, smart grids and energy efficiency management systems are forming the basis of a new energy infrastructure. the circular economy model is an important component of a green economy, which involves moving from a linear “take-use-dispose” model to a “recycle and reuse” model. this approach takes into account, starting from the design stage of products, their service life extension, repairability and the possibility of recycling materials at the end of their life. the european union has adopted comprehensive circular economy strategies, including reducing plastic waste, granting products the “right to repair” and developing recycling infrastructure. many companies are also rethinking their business models, moving from selling products to providing services, which will ensure more efficient use of resources. literature review in the process of analyzing the literature on the topic, scientific research has been conducted by several leading economists and experts from around the world on the modern development trends of the green economy concept and its role in the global economy. among them, according to the scientific views of a.kh. kadyrov, the green economy is not only a concept aimed at solving environmental problems in the conditions of uzbekistan, but also a strategic model that radically improves the quality of economic growth. the scientist indicates the rational use of natural resources, increasing energy efficiency, and ensuring environmental safety as the main pillars of the green economy. he notes that although green projects may seem expensive in the short term, in the long term they will serve to reduce production costs, reduce investment risks, and strengthen economic stability. kadyrov explains the role of the green economy in the global economy in an inextricable link with international investment flows and environmental standards[1]. z.r. khudoyberdiev interprets the concept of a green economy as an important mechanism for ensuring the environmental and social security of the national economy. in his opinion, in the modern global economy, the competitiveness of countries is increasingly determined by the level of implementation of green technologies. the scientist justifies the fact that a green economy requires the integration of climate change adaptation policies with economic development strategies. khudoyberdiev also emphasizes that a green economy plays an important role in integrating into global value chains, increasing export potential, and expanding the market for environmentally friendly products[2]. b.t. karimov approaches the concept of a green economy from an investment and institutional point of view. according to him, a green economy is changing the direction of capital flows on a global scale, leading to a sharp increase in the share of green finance, green bonds, and investments based on esg principles. the scientist explains the place of a green economy in the global economy through the interaction between international financial institutions, transnational companies, and state policy. according to karimov, the transition to a green economy is not only an environmental obligation for national economies, but also a factor that ensures strategic competitive advantage[3]. e.b. barbier, one of the founders of the green economy theory, considers it a new paradigm of economic growth. in his opinion, the traditional economic model has led to global crises due to its failure to take into account environmental constraints. barbier scientifically substantiates the american journal of business management, economics and banking volume 43 december2025 p a g e | 66 www.americanjournal.org possibility of achieving a balance between economic development, environmental protection and social equality through a green economy. he shows the global importance of the green economy as a systemic response to resource scarcity, environmental degradation and climate change, and emphasizes the need to prioritize green investments in public policy[4]. n. stern's scientific views are based on the economic effectiveness of the green economy in combating climate change. in his research, he proves that the lack of environmental measures will lead to significant financial losses for the global economy. stern evaluates the transition to a green economy not as an additional cost, but as an investment that reduces future economic risks. in his opinion, the development of green technologies and the reduction of carbon emissions in the global economy will ensure sustainable economic growth in the long term and form new rules for international economic relations[5]. j.d. sachs sees the green economy as the main economic platform for achieving sustainable development goals. he emphasizes that poverty reduction, addressing environmental problems, and ensuring economic inclusion are inseparable processes in the global economy. according to sachs, the green economy creates new opportunities for economic growth not only for developed but also for developing countries. he justifies the need to implement the green transformation through globally coordinated policies and international cooperation[6]. s.yu. glazyev interprets the green economy as an integral part of the new technological paradigm. in his opinion, new industries that are being formed in the global economy based on green technologies are becoming the main drivers of economic growth. glazyev associates the development of the green economy with technological modernization, innovative policies, and the active participation of the state. he emphasizes that the green economy is changing the global economic structure and renewing the forms of competition between countries[7]. g.b. kleiner assesses the green economy based on a systemic economic approach. he believes that the success of a green economy is determined not only by technological factors, but also by the quality of institutions, the effectiveness of governance, and the level of coordination between economic actors. kleiner interprets the process of transition to a green model in the global economy as a complex, multilevel systemic transformation and emphasizes the importance of harmonizing the interests of the state, business, and society in this process[8]. research methodology economic research methods such as analyzing research conducted by world scientists on the modern development trends of the green economy concept and its role in the global economy, collecting and comparing all information on the topic, and logical thinking were used. analysis and discussion of results green finance is a rapidly growing segment of the global financial system. the green bond market is showing exponential growth in 2023-2024, global green bond issuance reached hundreds of billions of dollars. esg (environmental, social, governance) investments remain a key criterion for institutional investors, encouraging companies to increase their environmental and social responsibility. many banks are introducing “green lending” programs, which involve providing preferential loans to environmental projects. states are also supporting green projects through various tax breaks, subsidies and grant programs. investment funds based on esg metrics are also becoming american journal of business management, economics and banking volume 43 december2025 p a g e | 67 www.americanjournal.org widespread in the private sector. the paris agreement (2015) and subsequent international agreements form the basis of global action against climate change. by 2024, many countries have submitted updated nationally determined contributions (ndcs), reflecting their commitments to reduce carbon emissions and adapt to climate change. cop summits are underway, and important agreements are being signed between countries on the exchange of experience, financial assistance and technology transfer. developed countries are allocating billions of dollars to help developing countries make the “green transition”. instruments such as carbon pricing mechanisms, emissions trading systems and border carbon adjustments are being introduced globally. the transition to a green economy is creating millions of new jobs. according to the international labour organization (ilo), the green economy could create 24 million new jobs globally by 2030. the demand for personnel in the renewable energy sector, green construction, eco-tourism, organic agriculture and waste management is growing. however, there is also a risk of job losses in traditional sectors, so the concept of a “just transition” is gaining importance. this includes retraining workers, strengthening social protection measures and creating new opportunities. many countries are launching training programs in “green skills”. the green economy also encompasses agriculture, where sustainable farming practices, organic production, and the development of climate-resilient varieties are of particular importance. precision farming technologies, satellite monitoring, drones, and iot devices are enabling more efficient use of water, fertilizers, and pesticides. innovative methods such as vertical farming, hydroponics, and aquaponics are enabling the production of agricultural products even in urban environments. reducing food waste is a major issue on the global agenda, and the principles of the circular economy are being applied to this sector as well. there is a growing demand for local food systems, short supply chains, and organic products. figure 1. factors driving the growth of the green economy[9] american journal of business management, economics and banking volume 43 december2025 p a g e | 68 www.americanjournal.org as we can see in figure 1, the concept of a green economy is becoming an important and integral direction of modern global economic development. the main driving forces of the green economy are the growing interest of investors, the growing environmental demands of consumers, the aggravation of environmental problems, and the rapid development of technological innovations. these factors, in combination, provide a qualitative renewal of the economic growth model. at the same time, the active participation of state policy and the improvement of institutional mechanisms are of decisive importance for the sustainable development of the green economy. by encouraging green investments, the widespread introduction of renewable energy sources, and the strengthening of environmental standards, countries have the opportunity to strengthen economic stability at the national and global levels. as a result, the green economy, along with reducing environmental problems, serves to create new jobs, increase competitiveness, and ensure social wellbeing. in general, the transition to a green economy is inevitable and has long-term strategic importance, determining the future direction of development of the global economy. in this process, effective cooperation between the state, business and society, the combination of innovative approaches and sustainable financing mechanisms are important factors. therefore, in-depth study and consistent implementation of the principles of the green economy are one of the most important conditions for ensuring sustainable development. figure 2. the impact of the green economy on various sectors of the global economy1 as shown in the figure, renewable energy is one of the most important and rapidly growing sectors of the green economy. the expansion of the use of solar, wind and bioenergy sources is explained by the need to reduce energy production costs and reduce carbon emissions. this sector serves to strengthen 1 the work was prepared by the author. american journal of business management, economics and banking volume 43 december2025 p a g e | 69 www.americanjournal.org energy security, reduce import dependence and ensure environmental sustainability on a global scale. at the same time, investments in the renewable energy sector have a positive impact on economic growth by creating new jobs and accelerating technological innovation. sustainable agriculture and green transport networks also play an important role in the structure of the green economy. sustainable agriculture is aimed at the rational use of natural resources, the production of environmentally friendly products and ensuring food security, and is developing further with the increasing demand of consumers for healthy and environmentally friendly food. at the same time, green transport systems, including electric vehicles and low-emission vehicles, are playing an important role in combating climate change by reducing greenhouse gas emissions. these sectors are key factors in creating sustainable infrastructure in the process of urbanization. another important area is green construction and waste management and recycling. green construction focuses on designing energy-efficient buildings, using resource-efficient materials, and reducing operating costs, which brings long-term environmental and economic benefits. waste management and recycling, on the other hand, allow for resource recovery, waste reduction, and the introduction of circular economy principles. these sectors ensure the systematic development of a green economy and help turn environmental problems into economic opportunities. figure 3. contribution of the green economy to the sustainable development goals2 as shown in the figure above, the green economy is based on a systematic approach that combines interrelated environmental, economic and social goals. protecting biodiversity, reducing greenhouse gas emissions and using resources efficiently are essential for ensuring environmental sustainability. these areas, along with reducing the negative consequences of climate change, serve to preserve the natural resource base and ensure ecological balance for future generations. at the same time, 2 the work was prepared by the author. american journal of business management, economics and banking volume 43 december2025 p a g e | 70 www.americanjournal.org developing renewable energy, creating green jobs and supporting green innovations create a new quality of economic growth. innovative solutions and technologies implemented within the framework of the green economy allow increasing economic efficiency, expanding employment and strengthening social well-being. as a result, the green economy, while solving environmental problems, becomes an important factor in sustainable and inclusive development, ensuring the long-term competitiveness of global and national economies. figure 4. main challenges in implementing a green economy3 in conclusion, the transition to a green economy is a complex and multifaceted process, and it is accompanied by a number of economic and institutional barriers. as the figure shows, the introduction of green technologies and infrastructure requires high initial costs, which is a significant barrier for entities seeking short-term financial benefits. in particular, in developing countries, the lack of capital and limited financial resources slows down the large-scale implementation of green projects. at the same time, political and institutional uncertainties complicate the process of investing in the green economy. the lack of a stable and long-term environmental policy, frequent changes in the regulatory framework, and the lack of clearly defined incentive mechanisms reduce investor confidence. in addition, the low level of knowledge of the population and business entities about the benefits of a green economy also negatively affects this process and hinders the widespread implementation of environmental initiatives. technological barriers and resistance to change are emerging as factors slowing down the transition to a green economy. the lack of maturity of some green technologies, inadequate infrastructure, and limited human resources complicate the process of technological implementation. at the same time, dependence on traditional production and energy systems increases resistance to change. as a result, the transition to a green economy becomes a strategic task that requires a systematic approach, coordinated policies, and comprehensive institutional reforms. 3 the work was prepared by the author. american journal of business management, economics and banking volume 43 december2025 p a g e | 71 www.americanjournal.org figure 5. a range of green economy opportunities4 the green economy serves to form a new and qualitatively higher stage of economic growth. as shown in the figure, new industries, innovative activities and green jobs are created within the framework of the green economy. this process has a positive impact on the diversification of the economy, the expansion of the labor market and the increase in the employment rate of the population. as a result, economic growth becomes sustainable and long-term, taking into account environmental constraints. at the same time, the environmental and social benefits of the green economy are important in increasing the well-being of society. improving the quality of the environment, protecting natural resources and reducing pollution have a direct impact on the health and quality of life of the population. socially, the green economy serves to develop a healthy lifestyle, strengthen social stability and ensure social equality. this shows that the green economy is not only an ecological, but also a comprehensive socio-economic model. the green economy is an important factor in stimulating innovation and increasing the global competitiveness of the economy. the introduction of new technologies and environmental solutions increases production efficiency and reduces the cost of resource use. at the same time, environmentally responsible business models strengthen the market position of enterprises by attracting environmentally conscious consumers. as a result, the green economy is becoming a strategic direction that ensures sustainable development, innovative progress and global economic competitiveness. more than half of the world's population lives in cities, and this proportion is increasing, so sustainable urban development is becoming increasingly important. the concept of green cities includes smart transport systems, energy-efficient buildings, green spaces, waste processing infrastructure and rational use of water. copenhagen, singapore, amsterdam and other cities are leading the way in green urbanization. in the urban planning process, environmental criteria, the development of public transport and bicycle infrastructure are coming to the fore. smart city technologies are used to efficiently use resources, optimize transport flows and improve the quality of life of residents. green building certification (leed, breeam) is becoming a standard in the 4 the work was prepared by the author. american journal of business management, economics and banking volume 43 december2025 p a g e | 72 www.americanjournal.org construction industry. for developing countries, the transition to a green economy is both an opportunity and a challenge. on the one hand, they can immediately switch to modern green technologies, bypassing the negative consequences of the traditional development path (the "leapfrogging" effect). on the other hand, the lack of financial resources, technological lags and the need for economic growth complicate the green transition. countries such as uzbekistan are also developing the direction of the green economy reforms are being carried out in areas such as renewable energy projects, the development of ecotourism, water-saving technologies and organic agriculture. international cooperation, technology transfer and capacity building programs play an important role in the green transformation of developing countries. the transition to a green economy involves many difficulties. the main obstacles are high initial investments, lobbying activities of traditional industries, the risk of unemployment and social resistance. the phenomenon of “greenwashing” – companies using false marketing techniques to portray themselves as environmentally responsible – is eroding consumer trust and making it difficult to identify truly green companies. there are also problems with the slow pace of technological change, inadequate regulatory frameworks and cooperation between countries. some developing countries consider green technologies expensive and unsuitable for them. the complexity of global chain reactions and the need to balance different economic interests make political decisions difficult. the future of the green economy looks promising, as technological innovation, increased social awareness and increased political will are accelerating the green transformation. many countries plan to achieve carbon neutrality between 2030 and 2050. artificial intelligence and quantum computing are opening up new opportunities for solving environmental problems. the hydrogen economy, carbon capture technologies and bio-innovations offer hope for the future. the younger generation is paying more attention to environmental issues and changing their consumption habits. business model innovations, the sharing economy and the platform economy are helping to reduce pressure on resources. the green economy is seen not only as a means of solving environmental problems, but also as a source of new economic opportunities, increased competitiveness and improved quality of life. a sustainable future can be built through global cooperation, an inclusive approach and innovative solutions. conclusion and suggestions the concept of a green economy has become one of the most important directions of global economic development today, playing an important role in ensuring sustainable growth, mitigating environmental problems and promoting the rational use of natural resources. the results of the study show that by introducing the principles of a green economy, it is possible to increase production efficiency, reduce carbon emissions and improve social well-being. also, the transition to renewable energy sources on a global scale, the widespread introduction of green technologies and the promotion of environmental investments are one of the main factors increasing the competitiveness of countries. the green economy plays an important role not only in ensuring environmental sustainability, but also in creating new jobs, innovative development and economic security. therefore, the gradual integration of this concept into national economies is a strategic necessity. american journal of business management, economics and banking volume 43 december2025 p a g e | 73 www.americanjournal.org in addition, it is advisable to implement the following measures to expand the concept of a green economy in our country: 1. it is advisable to develop laws, strategies and state programs supporting the principles of a green economy and strengthen their implementation. 2. it is necessary to expand tax incentives, subsidies and financial support mechanisms for investments in renewable energy, environmentally friendly production and energy-saving technologies. 3. it is necessary to develop environmentally friendly technologies and implement them in industry through the development of scientific research and experimental design work (srtd). 4. it is important to train qualified specialists through the development of green economy, sustainable development and environmental management in the education system. 5. it is recommended to introduce advanced practices in the field of green economy through global climate initiatives, exchange of experience with international financial institutions and developed countries. 6. it is necessary to develop specific indicators and monitoring mechanisms to assess the effectiveness of the transition to a green economy. references 1. kadyrov a.kh. fundamentals of sustainable development and green economy. – tashkent: economics, 2021. – 256 p. 2. khudoyberdiyev z.r. green economy and environmental policy: theory and practice. – tashkent: science and technology, 2020. – 198 p. 3. karimov b.t. strategies for economic development in the context of climate change. – tashkent: yangi asr avlody, 2022. – 220 p. 4. barbier e.b. the green economy: rethinking economic growth. – cambridge: cambridge university press, 2010. – 240 p. 5. stern n. the economics of climate change: the stern review. – london: hm treasury, 2006. – 692 p. 6. sachs j.d. the age of sustainable development. new york: columbia university press, 2015. 544 p. 7. glazev s. yu. strategy of operational development and conditions of global crisis. m.: ekonomika, 2011. 255 p. 8. клейнер г.б. системная экономика. – м.: наука, 2015. – 432 с. 9. bobylev s.n., zakharov v.m. green economy and sustainable development. moscow: faculty of economics mgu, 2012. 280 p. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 64 www.americanjournal.org comparative analysis of budget accounting standards in uzbekistan and international public sector accounting standards makhamadalieva makhliyokhon makhamadmurod qizi assistant teacher, phd student, tashkent state university of economy, +998946420435, maxamadaliyeva.m@mail.ru a b s t r a c t k e y w o r d s this study provides a comprehensive comparative analysis of uzbekistan's budget accounting standards and international public sector accounting standards (ipsas). through document analysis and comparative methodology, this research examines the key differences, similarities, and implementation challenges between these two accounting frameworks. the findings reveal significant gaps in asset recognition, revenue accounting, and financial reporting transparency that hinder uzbekistan's alignment with international best practices. the study identifies critical areas requiring reform and provides recommendations for gradual convergence toward ipsas adoption, contributing to the broader discourse on public sector accounting harmonization in emerging economies. budget accounting, ipsas, uzbekistan, public sector accounting, financial reporting, convergence introduction the global movement toward transparent and accountable public financial management has intensified the need for standardized accounting practices in the public sector. international public sector accounting standards (ipsas), developed by the international public sector accounting standards board (ipsasb), represent the benchmark for public sector financial reporting worldwide. these standards aim to enhance transparency, accountability, and comparability of public sector financial statements across different jurisdictions. uzbekistan, as an emerging economy undergoing significant economic reforms, faces the challenge of modernizing its public financial management systems to align with international best practices. the country's current budget accounting framework, established through various legislative acts and regulations, reflects a traditional cash-based approach that differs substantially from the accrual-based ipsas framework. this disparity creates challenges for international comparability, transparency, and effective public financial management. american journal of business management, economics and banking volume 37 june2025 p a g e | 65 www.americanjournal.org the importance of this comparative analysis stems from uzbekistan's strategic economic development goals and its aspirations for international integration. as the country seeks to attract foreign investment and enhance its economic standing, the adoption of internationally recognized accounting standards becomes crucial for building investor confidence and improving governance structures. furthermore, the world bank and other international organizations increasingly emphasize the importance of ipsas adoption for emerging economies as a means of strengthening public financial management. literature review the theoretical foundation of public sector accounting has evolved significantly over the past decades, moving from traditional cash-based systems toward comprehensive accrual accounting frameworks. wynne (2008) argues that the adoption of accrual accounting in the public sector represents a fundamental shift from focusing solely on cash flows to providing a complete picture of government financial position and performance. this theoretical evolution underlies the development of ipsas, which incorporates both cash and accrual basis standards to accommodate different levels of accounting sophistication across jurisdictions. the new public management (npm) movement has significantly influenced public sector accounting reform, emphasizing the adoption of private sector management practices in government operations. hood (1995) identifies accounting transparency and performance measurement as core elements of npm, which directly support the rationale for ipsas adoption. however, critics like broadbent and guthrie (2008) argue that the direct application of private sector accounting principles to public sector entities may not always be appropriate, given the different objectives and accountability relationships in government organizations. institutional theory provides another lens for understanding public sector accounting reform. dimaggio and powell (1983) suggest that organizations adopt similar practices due to coercive, mimetic, and normative pressures. in the context of ipsas adoption, coercive pressures from international organizations, mimetic behavior copying successful countries, and normative pressures from professional accounting bodies all contribute to the drive for standardization. this theoretical framework helps explain why countries like uzbekistan face pressure to align with international standards despite potential implementation challenges. global adoption of ipsas has been gradual but steady, with varying degrees of implementation across different regions. benito et al. (2007) conducted a comprehensive survey of ipsas adoption worldwide, finding that developed countries generally show higher adoption rates than emerging economies. european union countries, influenced by statistical reporting requirements and good governance initiatives, demonstrate relatively high ipsas compliance. however, implementation challenges persist even in developed countries, particularly regarding complex standards such as those dealing with consolidated financial statements and social benefits. emerging economies face unique challenges in ipsas adoption, as highlighted by adhikari and mellemvik (2011) in their study of developing countries. these challenges include limited technical expertise, inadequate it infrastructure, resistance to change from existing stakeholders, and competing priorities for scarce resources. the authors emphasize that successful ipsas implementation requires not only technical accounting knowledge but also strong institutional support and political commitment. american journal of business management, economics and banking volume 37 june2025 p a g e | 66 www.americanjournal.org uzbekistan's public financial management system reflects the country's unique historical development and ongoing economic transformation. following independence in 1991, uzbekistan maintained many elements of the soviet-era budgetary system while gradually introducing market-oriented reforms. the country's approach to economic transition has been characterized by gradualism and state-led development, which has influenced the pace and nature of public sector reforms. recent years have witnessed accelerated reform efforts under president shavkat mirziyoyev's administration, with significant emphasis on improving governance and transparency. the "strategy of actions on five priority directions of development of the republic of uzbekistan in 2017-2021" included specific commitments to enhancing public financial management and adopting international best practices. however, limited academic research has been conducted on the specific challenges and opportunities for ipsas adoption in uzbekistan's context. international organizations have played an important role in supporting uzbekistan's public financial management reforms. the world bank's public financial management modernization project and the asian development bank's various governance initiatives have provided technical assistance and capacity building support. these interventions have helped raise awareness of international standards and best practices, creating a foundation for more comprehensive reform efforts. methodology this study employs a qualitative comparative analysis approach to examine the differences between uzbekistan's budget accounting standards and ipsas. the research design is based on document analysis and content analysis methodologies, which are particularly appropriate for comparing regulatory frameworks and accounting standards. the comparative analysis framework allows for systematic identification of similarities, differences, and gaps between the two accounting systems. the research adopts an interpretive paradigm, recognizing that accounting standards are socially constructed and context-dependent. this approach acknowledges that the mere technical comparison of standards is insufficient without considering the institutional, cultural, and economic factors that influence their development and implementation. the study therefore incorporates both technical and contextual analysis to provide a comprehensive understanding of the convergence challenges and opportunities. results uzbekistan's budget accounting system is primarily governed by the law on budget system of the republic of uzbekistan and various implementing regulations issued by the ministry of finance. the system follows a predominantly cash-based approach with some elements of modified cash accounting for specific transactions. the framework emphasizes budgetary control and compliance rather than comprehensive financial reporting, reflecting its historical development from soviet-era practices. ipsas, in contrast, provides a comprehensive framework of 50 standards covering both cash and accrual basis accounting for public sector entities. the standards are designed to enhance transparency, accountability, and comparability of public sector financial statements worldwide. ipsas follows a conceptual framework similar to private sector standards but adapted for public sector characteristics such as non-exchange transactions, service delivery objectives, and political accountability requirements. american journal of business management, economics and banking volume 37 june2025 p a g e | 67 www.americanjournal.org table 1 comparison of key aspects of uzbekistan budget accounting and ipsas aspect uzbekistan budget accounting standards ipsas primary basis cash basis with limited accrual elements comprehensive accrual basis (with cash basis option) revenue recognition when cash is received when control is established (accrual) or when cash is received (cash basis) expense recognition when cash is paid when resources are consumed (accrual) or when cash is paid (cash basis) asset recognition limited to cash and some physical assets comprehensive asset recognition including intangibles, financial instruments liability recognition mainly contractual obligations full recognition including provisions, contingencies, employee benefits the fundamental difference between the two frameworks lies in their approach to transaction recognition. uzbekistan's system primarily recognizes transactions when cash changes hands, which provides strong budgetary control but limited information about the government's full financial position. ipsas accrual standards provide a more comprehensive view of government finances by recognizing assets, liabilities, revenues, and expenses when they occur rather than when cash is exchanged. table 2 comparative analysis of financial statement presentation bas and ipsas component uzbekistan budget accounting standards ipsas primary statements budget execution reports, cash flow statements statement of financial position, financial performance, changes in net assets, cash flows, comparison of budget and actual consolidation limited consolidation requirements comprehensive consolidation of controlled entities comparative information previous year budget vs. actual comparative financial information across periods segment reporting limited by budget classifications comprehensive segment reporting by service/geographic segments notes to financial statements basic explanatory notes comprehensive disclosure requirements uzbekistan's financial reporting focuses heavily on budget execution and compliance, with limited emphasis on comprehensive financial position reporting. ipsas requires a full set of financial statements that provide stakeholders with complete information about the government's financial position, performance, and cash flows. when it comes to the asset recognition framework represents one of the most significant differences between the two systems. uzbekistan's approach provides limited guidance on asset recognition and measurement, particularly for complex assets like infrastructure and intangibles. ipsas provides comprehensive guidance that enables more accurate representation of government assets and their value. american journal of business management, economics and banking volume 37 june2025 p a g e | 68 www.americanjournal.org uzbekistan's revenue recognition follows a primarily cash-based approach, recognizing revenues when payments are received rather than when entitlements arise. this approach aligns with budgetary control objectives but may not provide accurate information about government's revenue potential or timing of revenue recognition. tax revenues, the largest component of government revenue, are recognized only when collected, which can lead to significant timing differences compared to economic activity. ipsas provides detailed guidance on revenue recognition for both exchange and non-exchange transactions. non-exchange transactions, which are particularly relevant for government entities, include taxes, transfers, and grants. ipsas 23 (revenue from non-exchange transactions) requires recognition of revenue when the government gains control over resources, which provides more timely and accurate revenue reporting. discussion the comparative analysis reveals that the gap between uzbekistan's budget accounting standards and ipsas reflects broader theoretical tensions in public sector accounting reform. the findings support institutional theory predictions about the challenges of transplanting accounting practices across different institutional contexts. while coercive pressures from international organizations encourage ipsas adoption, the analysis demonstrates that successful implementation requires alignment with local institutional capabilities and political priorities. the results also contribute to the new public management debate by highlighting the practical challenges of implementing private sector-inspired accounting practices in traditional public sector contexts. the emphasis on budgetary control in uzbekistan's system reflects different accountability relationships and performance measures compared to private sector entities, supporting arguments for context-sensitive approaches to public sector accounting reform. the findings align with adhikari and mellemvik's (2011) observations about ipsas implementation challenges in developing countries. their emphasis on technical capacity, institutional support, and political commitment resonates strongly with the uzbekistan context. however, this study extends their analysis by examining specific technical differences and providing detailed comparative analysis of accounting treatments. wynne's (2008) arguments about the benefits of accrual accounting in the public sector are supported by the analysis, which reveals how cash-based systems limit the information available for decisionmaking and accountability. however, the study also identifies practical constraints that may limit the immediate applicability of these benefits in uzbekistan's context, supporting more nuanced perspectives on public sector accounting reform. the analysis partially contradicts broadbent and guthrie's (2008) critique of npm-inspired accounting reforms by demonstrating clear technical advantages of ipsas in areas such as asset recognition and financial reporting comprehensiveness. however, the implementation challenges identified support their concerns about the appropriateness of direct private sector practice transplantation without adequate attention to public sector contexts. conclusion this comparative analysis of uzbekistan's budget accounting standards and ipsas reveals significant differences that reflect both technical and institutional factors. the predominantly cash-based approach in uzbekistan provides strong budgetary control but limits comprehensive financial reporting and american journal of business management, economics and banking volume 37 june2025 p a g e | 69 www.americanjournal.org accountability. ipsas offers a more complete framework for public sector financial reporting but requires substantial changes to current practices and capabilities. the analysis identifies several key areas where convergence would provide significant benefits, including asset recognition and measurement, revenue recognition, and financial statement presentation. however, implementation challenges related to technical capacity, institutional readiness, and resource constraints suggest that a gradual, phased approach would be most appropriate for uzbekistan's context. the study contributes to the broader literature on public sector accounting reform in emerging economies by providing detailed analysis of a specific country context and examining both technical and institutional dimensions of convergence challenges. the findings support arguments for contextsensitive approaches to ipsas implementation while confirming the potential benefits of international standard adoption. future research should examine stakeholder perspectives on ipsas implementation in uzbekistan, analyze the costs and benefits of different implementation approaches, and develop detailed implementation roadmaps for priority areas. comparative studies with other post-soviet states could also provide valuable insights for regional approaches to public sector accounting reform. references 1. adhikari, p., & mellemvik, f. (2011). the rise and fall of accruals: a case of nepalese central government. journal of accounting in emerging economies, 1(2), 123-143. 2. albu, c. n., albu, n., pali-pista, s. f., gîrbină, m. m., selimoglu, s. k., kovács, d. m., ... & strouhal, j. (2013). implementation of ipsas in central and eastern european countries: an exploratory study. international journal of business research, 13(5), 15-29. 3. benito, b., brusca, i., & montesinos, v. (2007). the harmonization of government financial information systems: the role of the ipsass. international review of administrative sciences, 73(2), 293-317. 4. broadbent, j., & guthrie, j. (2008). public sector to public services: 20 years of "contextual" accounting research. accounting, auditing & accountability journal, 21(2), 129-169. 5. chan, j. (2006). ipsas and government accounting reform in developing countries. research in governmental and nonprofit accounting, 12, 31-42. 6. dimaggio, p. j., & powell, w. w. (1983). the iron cage revisited: institutional isomorphism and collective rationality in organizational fields. american sociological review, 48(2), 147-160. 7. ernst & young. (2010). ipsas explained: a summary of international public sector accounting standards. ernst & young global limited. 8. harun, h., & kamase, h. p. (2012). accounting change and institutional capacity: the case of a provincial government in indonesia. australasian accounting, business and finance journal, 6(2), 3550. 9. hood, c. (1995). the "new public management" in the 1980s: variations on a theme. accounting, organizations and society, 20(2-3), 93-109. 10. mcgee, r. w., & preobragenskaya, g. g. (2006). accounting and financial system reform in eastern europe and asia. springer. american journal of business management, economics and banking volume 37 june2025 p a g e | 70 www.americanjournal.org 11. makhamadalieva m.m. (2024). exploring the differences between budget accounting in the public sector and accounting in the private sector. american journal of interdisciplinary research and development, 2024/5, 244-248. 12. makhamadalieva m.m. (2024). budjet tashkilotlarida buxgalteriya hisobini yuritishning milliy va xalqaro standartlari. yashil iqtisodiyot va taraqqiyot, 2024/5, 441-447. 13. nazarbayev, b., satybaldin, a., & beisenova, l. (2019). public financial management modernization in kazakhstan: challenges and opportunities. central asian economic review, 3(2), 45-62. 14. wynne, a. (2008). accrual accounting for the public sector—a fad that has had its day? international journal on governmental financial management, 8(2), 117-132. american journal of business management, economics and banking issn (e): 2832-8078 volume 25, | june 2024 p a g e | 28 www.americanjournal.org practical state of remote banking services by commercial banks abdullayeva sharbat zulpikarovna 1, 1tashkent state economic university, professor khudayberganova zarofat zahidovna 2 2 tashkent state economic university, phd a b s t r a c t k e y w o r d s the article deals with the problems of improving the remote banking services of republican commercial banks scientific recommendations for improving the quality of remote banking services in commercial banks and ensuring the timely repayment of online loans, expanding their scope based on the study and analysis of the state of remote banking services and improving remote banking services based on continuous study of customer opinions developed and formed conclusions. the level of use of information and communication technologies is expanding in all areas around the world. commercial banking, remote banking services, online credit, customer, quality of banking services. introduction the world pays attention to scientific research aimed at developing remote services for commercial banks and introducing new modern banking services and improving their quality. scientific research is being conducted on the issues of expanding remote banking services for commercial banks, improving the culture of remote customer service by banks, increasing the confidence of a wide segment of the population in the bank, attracting large clients by banks and offering new types of remote services, taking into account their requirements and proposals, customer service, constantly taking into account the opinion clients. in uzbekistan, as part of fundamental reforms of the banking and financial system, attention is paid to developing the activities of commercial banks, increasing the confidence of business entities and the population in the banking system. the following task has been defined in the republic: “by introducing new financial instruments and issuing bonds, further expanding the range of banking services, developing the banking system based on advanced information technologies.”[1] to ensure the implementation of this task, one of the pressing issues is the scientific substantiation of the possibilities for the development of remote banking services in commercial banks, the development of scientific proposals and practical recommendations, based on the fact that the criteria associated with the provision of remote services by banks are not reflected in the bank’s strategy, what is happening serious american journal of business management, economics and banking volume 25 june 2024 p a g e | 29 www.americanjournal.org changes in the types and quality of banking services, that mutual cooperation relations with foreign banks have been established, that foreign experience is being positively applied in uzbekistan. literature analysis the evolution of the theory of banking services has gone through several stages of development. the initial stage of development of the theory of banking services begins with the scientific work of h. douglas[2] and g. bryan, which is devoted to the study of the banking services market and its segment of banking services. the second stage is devoted to the study of the characteristics of the credit and financial systems of individual countries and the possible consequences of the influence of globalization and centralization of banking capital on the banking services market, which are reflected in the scientific works of f. derek[3], o. donnell, e. ballarin. at the third stage, the idea of a “financial supermarket” and a “financial boutique” became relevant, as well as the inclusion of highly specialized banks in the ranks of universal banks. loan capital market services and electronic services have become widespread, and cases of mergers and acquisitions of banks have become more frequent. in this regard, we can highlight separately the scientific works of d. gentle, j. sinki[4], p. rose[5]. the works of these scientists focus on the fact that banking is a theoretical, technological, financial, intellectual and professional banking activity that optimizes banking operations. when studying the evolution of the banking services market, o. lavrushin described in great detail the stages of development of services provided to clients in banking activities while classifying the stages of development of the banking services market by year.[6] in modern economic literature, the term “banking products” is usually identified with the concept of “banking service”, and is sometimes used instead. banking service helps to carry out banking operations at an optimal level, and banking services, developed and implemented along with banking operations, create banking products. one of the economists who conducted research in the field of banking services in our republic, z. mamadiyarov[7] and kh. khudoyarova[8] paid more attention to remote and retail services of commercial banks. economist a. ivanov in his work classifies banking services according to a number of criteria characterizing the features of their provision to clients.[9] summarizing our discussions about banking services, in our opinion, banking services are a set of practical and technical banking operations that are directly related to the effective management of the operational and strategic practical activities of commercial banks and are carried out on the basis of a mutual agreement aimed at meeting the needs of bank clients. banking services are truly reflected in the practical activities of banks. these activities represent services related to meeting the banking needs of customers. at the same time, banking services are an important element that ensures the optimization of banking operations, the efficiency of this operation when choosing a particular type of banking service, they must pay attention to the level of convenience and quality and feel that these indicators are the basis for ensuring its competitiveness. in a market economy, the demand for remote servicing of commercial banks is increasing. research methodology in the article, a systematic analysis of the literature was carried out in researching the issues of improving remote banking services in commercial banks. also, the scientific conclusions of the american journal of business management, economics and banking volume 25 june 2024 p a g e | 30 www.americanjournal.org scientific research works carried out by foreign and local scientists in this direction were studied and independent approaches were formed. analysis and discussion of results although the provision of remote banking services in commercial banks of the republic of uzbekistan is developing every year, it cannot be said that there are no problems in the further development of these services. you can increase the number of clients by eliminating problems that have arisen in remote banking services and creating convenience in the program. in addition to problems, the development of remote banking services in commercial banks is influenced by several factors. despite this, a number of regulatory documents regarding the development of remote banking services have been developed in the banking system of our country and intensive work is underway. today, banks are trying to increase their income as a result of increasing the number of clients, attracting more clients and improving the quality of services provided to them. at the same time, the scope of application of remote management of bank accounts in our country has expanded, it has become widely popular among bank clients, and as of january 1, 2022, the total number of users of remote management of bank accounts has increased by almost 1.4 times compared to the beginning of 2021. reaching 20,203 thousand people. table 1 volume and dynamics of the authorized capital of “ozsanoatqurilishbank”, billion soums indicators 2018 2019 2020 2021 2022 amount of authorized capital of uzsanoatkurilishbank 1452 1876,7 4634,5 4634,5 4634,5 rates of growth 208,0 129,2 246,9 100,0 100,0 the size of the authorized capital of the banking sector 16307 19673 41877 44 655,8 54760 rates of growth 180,9 20,6 112,9 106,6 122,6 share in the authorized capital of the banking sector "uzsanoatkurilishbank" 8,9 9,5 11,1 10,4 8,5 as can be seen from the table data, the authorized capital of uzsanoatkurilishbank increases in absolute terms during the analyzed period. however, the growth rate of authorized capital lags behind the growth rate of the banking sector. as a result, the authorized capital of uzsanoatkurilishbank shows a trend of decreasing share in the banking sector of our country over the past 3 years. as of 2019, this figure was 11.1%, compared to 2022 it fell by 8.5%. this, in turn, negatively affects the status of uzsanoatkurilish bank, which occupies the main positions in the banking sector of our country. in our opinion, the share of authorized capital in the structure of equity capital of uzsanoatkurilish bank should not be allowed to decrease. because the authorized capital is the most stable part of private capital, along with the bank’s retained earnings. the optimal way for a bank to achieve this, in our opinion, is to introduce modern corporate governance from the outside by selling a 15% stake in the authorized capital to foreign investors, and, thanks to this, introduce it into the banking system of our country, having studied the experience of foreign investors in the remote provision of banking services, american journal of business management, economics and banking volume 25 june 2024 p a g e | 31 www.americanjournal.org which will contribute to ensuring the fulfillment of the assigned tasks of the economic reforms being carried out today in our republic. as the main activities of financial literacy centers, commercial banks should pay attention to issues of financial literacy among the population and entrepreneurs who visit the bank for the first time, i.e. establishing systematic consultation of the population and entrepreneurs on issues of financial literacy in economic relations with the bank, developing short-term and long-term plans for financial literacy in this direction, establishing constant monitoring of the implementation of tasks defined in tactics and strategy, service based on an individual approach to each client, discussion results and achievements of the client after financial consultation. conclusions and suggestions as a result of studying the theoretical and practical aspects of remote services of commercial banks, we believe that the implementation of the following will bring a number of positive results in order to choose the optimal options for the client and the bank, as well as to improve the quality of remote services of banks and expand their scope. in particular, by developing the practice of increasing the share of online time and savings deposit services in the remote services of commercial banks, it is possible to expand the size of the bank's time-stable resources and, due to this, to increase the scope of the bank's online credit services. this, in turn, serves to increase the scope of remote banking services. also, based on the study and analysis of the situation of remote services of commercial banks in our republic, it is necessary to develop the mechanism of "customer opinion" for the development of remote banking services in commercial banks. implementation of this mechanism by commercial banks will serve to develop remote banking services. in addition, in order to expand the range of remote services of commercial banks, adapting their convenience to all types of customers based on the continuous development of mobile applications of banks creates an opportunity for customers to independently choose the conditions of banking services in the options that are convenient for them through the mobile application of the bank. as a result, the number of users of the bank's mobile applications will increase. references 1. 2019 йилда мамлакатимизни ривожлантиришнинг энг муҳим устувор вазифалари тўғрисидаги ўзбекистон республикаси президентининг парламентга мурожаатномаси. https://president.uz/uz/lists/view/2228 2. douglas x. banking policy in the field of lending. – m.: “slovo”, 1971. – p. 508. 3. derek f. global strategy of banks. – m.: “economics and finance”, 1990. – p. 385. 4. sinkey j. financial management in a commercial bank and in the financial services industry. – m: “alpina business books”, 2007. – p. 1018. 5. rose peter s. banking management. per. from english from 2nd ed. m.: “delo ltd”, 1995. – p. 479. 6. lavrushin o.i. banking management textbook. m.: “knorus”, 2009, p. 439. 7. ivanov a. banking services: foreign and russian experience. m.: “finance and statistics”, 2002. 8. mamadiyarov z.t. evolution and development stages of remote banking services in commercial banks (international experience). international scientific electronic journal of finance and accounting. #6 december 2018. 9. khudoyarova kha.a. improving the practice of retail banking services in uzbekistan. dissertation for the degree of doctor of philosophy (phd) in economics, autoref. tashkent, 2020. b. https://president.uz/uz/lists/view/2228 american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 48 www.americanjournal.org the role of payment and payment flows in determining the nature of the payment circuit sayfiddinov ilhom fayziddinovich professor of tashkent state university of economics e-mail:sayfidinovif@mail.ru a b s t r a c t k e y w o r d s this scientific article discusses the scientific and practical aspects of the nature of payment circulation, the problems related to it and ways to solve them. it is clearly stated that determining the nature of the payment circulation requires determining the nature of the payment, and the possibility of determining the nature of the "payment circulation" without determining the nature of the "payment". payment, payment turnover, insolvency, payment discipline, macroeconomic stability, monetization coefficient, gdp (gross domestic product), money supply, money aggregate (m2), cash flow, investment, commercial bank, loan interest, accounts receivable, accounts payable. introduction in our opinion, it makes no sense to talk about the problems related to it and ways to solve them without having a clear, scientifically and practically based position on the essence of payment circulation. in this regard, first of all, it should be noted that the essence of the payment circulation has a bilateral nature, and it consists of the logical combination of two essences that are relatively independent from each other. the point here is that "payment" and "circulation" are relative, but have an independent essence.based on this, it is reasonable to say that determining the nature of the payment circulation should begin with determining the nature of the payment. in other words, it is impossible to determine the nature of "payment circulation" without determining the nature of "payment". in ancient practice, the word "payment" usually means the payment of money according to some obligation. from the point of view of modern interpretation, money in the form of payments in the form of payments for obligations, in the form of legally established contributions for purchased goods, used resources, provided credit, etc. however, it should be noted here that in both of the abovementioned opinions (definitions) regarding the payment, in our opinion, the external manifestation of the payment is reflected.the reflection of deep economic relations inherent in payment, its connections and characteristics are beyond the scope of the above definitions. at the same time, with the change of ownership forms and the further development of market relations, payment is becoming one of the primary elements in the system of commodity-money relations and credit relations. the correctness of our opinion is confirmed by the fact that advance payment is used american journal of business management, economics and banking volume 37 june2025 p a g e | 49 www.americanjournal.org in the calculations for goods, the practice of suspending the delivery of goods and providing services to those who do not make payments is expanding, and the loans to insolvent enterprises are sharply reduced. it should also be noted that cash and credit are valid due to payment. if money is stripped of its payment feature (property, function), it ceases to be money. the same idea applies to credit. as an economic category, payment reflects the diversity of philosophical categories such as action, space, time, opposition, particularity, generality, quality, quantity, cause, effect, content and form. its interrelationship with such philosophical categories can be graphically visualized as follows (figure 1). at this point, it is appropriate to dwell on the issue of the form of payment. since economic categories are the most general form of existence of economic matter, the payment category consists of the most general form of existence of material formations in the form of money and credit. payment is manifested in the processes of issuing money into circulation, in the performance of all its functions by money, in the withdrawal of money from circulation, in the creation of credit, in its comprehensive validity and return (termination). even when money is held in reserve, it carries a sign of potential payouts. being an economic category, payment as the most general form shows private forms of payment relations between enterprises, between enterprises and households, between them and the state, between banks, between enterprises and residents, between individuals, between regions of the country, and between countries. the forms of manifestation of the payment are also reflected in the characteristics of its movement and in the calculations made through various payment instruments. each payment is made in two ways, i.e. horizontal and vertical. horizontal payment refers to the transfer of funds from the payer to the recipient. a vertical payment refers to a change in payment counterparties' obligations and payment resources. horizontal and vertical forms of movement are two sides of the same coin, i.e. payment. the horizontal form of movement is designed to make payments and equalize them. in turn, the vertical form of movement is determined by the intensity of equalization of payments. the higher the weight of equalized payments, the less the vertical form of movement is manifested. on the contrary, a decrease (reduction) in the weight of equalized payments in the payment circulation, in the form of a large or small increase or decrease of credit and money balances, leads to an increase in the form of vertical movement of payments, their difference from the average size. such differences are often associated with changes in the ratios in the economy at the macro and micro levels. forms of payment movements are strongly linked to the return of funds to the monetary and credit circulation. if its movement is limited only to the horizontal form, the return of funds can be zero. for example, the enterprise owes 10.0 million to the bank. can repay a loan of 100 soums and at the same time receive a loan equal to this amount from the bank. american journal of business management, economics and banking volume 37 june2025 p a g e | 50 www.americanjournal.org it can be seen that the vertical form of payment movement not to occur in this process. and only in this case, i.e. when the company returns the previously received loan from the bank and not to receive a new loan, the horizontal and vertical forms of payment movement coincides in their dimensions. from the two forms of payment movement comes two different ways of measuring it. the first measurement reflects the extent of gross turnover and the second measurement reflects the balance of turnover. such measurements show that the payment turnover can be different. gross turnover reflects payments and inflows of funds, while the balance of turnover can show the excess of payments over receipts of funds or, conversely, the excess of receipts of funds over payments. the issue of two forms of payment movement is of great theoretical and practical importance in connection with the concept of "payment flow". therefore, it is appropriate to clarify here the concept of "payment flow", which is directly related to payment. in this regard, it should be noted that since the flow of payments consists of two elements, i.e., gross turnover (payment of funds and their receipt) and changes in the balance of turnover, these two elements must be taken into account first of all when defining it.based on this, the payment flow, which can play an important role in determining the nature of payment and payment circulation, in our opinion, can be defined as follows: in a certain period (interval) and at the same time in horizontal and vertical forms, and according to its economic content, one a set (sum) of different payments is called a payment stream. american journal of business management, economics and banking volume 37 june2025 p a g e | 51 www.americanjournal.org there is a constant connection (coupling) between the two forms of movement of charge flows, and such a connection (coupling) is based on the speed of horizontal movement of the charge. because, as a rule, the higher the speed of movement of funds, the less funds remain in the accounts and the larger (higher) the balance of funds in bank accounts. at the same time, the tendency to accelerate payments, in turn, creates such a counter-tendency, according to which a number of banks become interested in the increase (increase) of funds in accounts.it is called flout in science and practice, and it is used as a bank resource. ironically, the presence of fraud is, to some extent, a hindrance to the introduction of an electronic system for the transfer of large sums of money. taking into account that such an obstacle may have a negative impact on the strengthening of the economy, in our opinion, it is necessary to compensate for the reduction of float by increasing the tariffs implemented by banks for high-speed calculations. the speed of payment flows also raises the question of whether ideal payments translate into real payments. unlike real payments, ideal payments are reflected in contracts, deals, plans, and forecasts. in particular, the supplier of goods is interested in when the payment for his goods will be received, what will be received as payment, that is, money or the obligation to pay in the future. on the other hand, real payments confirm the usefulness of the goods produced by him to the supplier, create a basis for renewal and, in many cases, expansion of the production of goods. the impact of payments on the rate of development or decline of production depends to a large extent on the ratio (proportions) of their division into commodity and non-commodity payments.in contrast to commodity payment circulation, which is characterized by the receipt of money by the seller in accordance with the exchange of goods, in the non-commodity payment circulation, for example, the tax inspectorate receives money in accordance with the tax liability of the taxpayer, in accordance with the loan obligation, the bank receives the money of the borrower, based on the exchange of the bank obligation, the bank receives the money of the creditor who deposited money etc. so, in the noncommodity payment circulation, money is exchanged for debt or credit obligations. a commodity-free payment circulation has its own value content. in terms of their value substance, non-commodity payments are equal to commodity payments, although they are part of the value of the commodity, although they are not equal in terms of their role in the economy. the dynamics (change) of the structural structure of the payment circulation by the sign of commodity and non-commodity payments reflects the change in the quality relations of the payment circulation. thus, above, we tried to highlight the categorical features of "payment" that serve to reveal the nature of payment circulation and to define the contours of the movement of "payment flows". all this, in our opinion, serves to reveal the nature of payment circulation more fully and more clearly. references. 1. berezina m.p. cashless payments in the russian economy. practice analysis. m .: jsc "consultbanker", 1997. -p.5. [1],[2] 2. raizberg b.a., lozovsky l.sh., starodubtseva e.b. modern economic dictionary. m.: infra-m, 2000. p. 288. 3. borisov a.b. big economic dictionary. – m.: knizhny mir, 2003. – p. 895. [3] 4. kosoy a.m. payment turnover: research and recommendations. m.: finance and statistics, 2005. 264 p. [4] american journal of business management, economics and banking volume 37 june2025 p a g e | 52 www.americanjournal.org 5. dostov v.l., shust p.m., valinurova a.a., puxov a.v. (2012) electronic finance. mify in reality / -m .: knorus: tsipsir, -232 p. 6. payment and settlement systems. international experience. innovations in retail payments. issue 43. the issue was prepared by the national payment system department of the bank of russia. c.8 (www.cbr.ru) 7. raximova x.u. (2016) cashless payments and payment system. study guide. t .: finance. 299 b. 8. rakhimova h.u. (2017) e-commerce in uzbekistan: state, problems and ways of development. t .: finance. 111 b. 9. taraqqiyot.uz website http://taraqqiyot.uz/2018-year-of-active-entrepreneurship innovation ideas and technologies http://www.cbr.ru/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 86 www.americanjournal.org directions for using the experience of foreign countries in applying tax incentives tukhsanov kudratillo nozimovich professor of tashkent state university of economics, dsc. a b s t r a c t k e y w o r d s this article describes the theoretical issues of taxing the activities of enterprises, directions for encouraging their activities through the tax mechanism, and the international experience of providing tax incentives in the tax system of some foreign countries. the international norms and mechanisms used to encourage the activities of enterprises through tax incentives are cited. as a result of the analysis, scientific conclusions were obtained on the prospects of using foreign countries' best practices in stimulating enterprises' activities. business entities, tax mechanism, tax benefits, tax types, tax regimes, international tax principles. introduction the tax burden, which is considered a consequential indicator of tax relations in the national economy of the country, is characterized, in essence, by the fact that a certain portion of financial resources in the population and private sector is levied in favor of the state. therefore, scientific discussions on the expression of the tax burden using quantitative indicators have always been relevant. in the past year, more than 55 thousand business buildings were built, the number of entrepreneurs who increased the turnover to $ 1 million increased by 5 thousand and amounted to 26 thousand, the number of exporting enterprises reached 7.5 thousand, and the total volume of exports increased by 30 percent experience in the implementation of sustainable tax policies of developed countries shows that tax relations can slow down and hinder the development of entrepreneurship in the state, or vice versa – serve as an important incentive for the development of the business sector. thus, in the scientific literature, the following forms of incentives through taxes for the development of entrepreneurship in the countries of the world stand out. these include providing tax holidays to newly established enterprises, lowering profit tax rates, introducing a simplified procedure for accounting and reporting, exemption from value-added tax, promotion of investments, promotion of research and innovation. analysis and discussion of results in the process of research, we will consider the application of forms of stimulation of the activities of business entities through tax incentives in some countries. in france, granting tax holidays to newly established businesses applies to young innovative businesses in their first fiscal year. in jordan, however, tax holidays are granted to newly established businesses american journal of business management, economics and banking volume 37 june2025 p a g e | 87 www.americanjournal.org for up to six years . new enterprises created in priority sectors of the economy in indonesia will be given the opportunity not to pay taxes for two to six years. a type of tax holiday in the netherlands is a special exemption from participation, according to which all capital gains of the enterprise and dividends received as a result of optimal ownership of shares are exempt from taxes . the decrease in income tax rates in france is based on the fact that for small businesses whose income does not exceed 38 thousand euros during the year, they pay a tax of 15% (instead of 33.3% at the standard rate). in the netherlands, the income tax rate for businesses is 19% for taxable profits of up to € 200,000 per year, and the tax rate is 25% if profits exceed that amount. the use of a simplified system of accounting and reporting in the uk is such that enterprises with an annual income of up to 15 thousand pounds fill out a simple tax return without detailed information about their activities. in france, small businesses only keep records of purchases and financial receipts, and also make official estimates of value-added tax, reflecting the fact that this tax is not levied. in sweden, small businesses are required to register with the tax inspectorate, and they file a simplified declaration using the cash register method of accounting for income. in france, value added tax exemption is based on the requirement that small businesses register as value added tax payers, but no tax is paid unless the minimum cap value of the annual turnover is exceeded. in poland, the support of the activities of business entities through taxes is applied as follows: value added tax for export goods at zero rate; also for the delivery of products within an industry, international transport services, environment for computers, servers, etc., computer equipment and accessories for people with disabilities, 5 for digital data transfer devices%; food products; 8 in relation to book titles, special thematic newspapers, newspapers and magazines%; in addition to special thematic newspapers, the clock is used for agricultural services, medicines and pharmaceutical products, tickets to cultural events, the construction sector; 23% compared to other products. in germany, in the field of exports, purchased raw materials, rent, if the transaction is of social importance, the value-added tax in the field of credit is not levied. as for investment incentives, part of the taxable profit of small enterprises with a reduced tax rate in france must be used for investments in that enterprise. in the united states, it is envisaged to exempt investments in small business capital assets from taxation if their annual volume does not exceed $ 24,000. in the united kingdom, a tax deduction on depreciation of buildings and equipment is distinguished by the prevalence, which allows some enterprises to deduct up to 40% from the tax base. in the netherlands, however, taxable profits are reduced by investments in capital assets. in some post-soviet countries, in particular estonia, part of the profit that the enterprise reinvested in its development is tax-exempt, and any investments of estonian enterprises, including those directed to other countries, are also exempt from income tax. in the uk, r & d spending incentives have been applied since 2000 using an increased rate of 150% deduction of research costs from the tax base for small and medium-sized businesses. for some types of r & d in the u.s., 20% of the cost increase can be deducted from the calculated income tax relative to the average cost over the base period (four years). american journal of business management, economics and banking volume 37 june2025 p a g e | 88 www.americanjournal.org in france, 50% of the increase in costs for conducting research, purchasing scientific equipment and paying researchers over the past two years can be deducted from the income tax amount. in the netherlands, tax liabilities can be exempted from payroll costs for employees involved in scientific research . as a result of studying the experience of tax incentives for the development and support of entrepreneurship in the countries under consideration, it can be concluded that the consistent development of entrepreneurship in these countries is largely associated with the successful tax policy of the state in the stimulating direction. despite the fact that the measures being implemented apply to enterprises located in certain regions of countries, the advantages of such a policy are reflected in almost all regions. even in the context of overcoming the consequences of the financial and economic crisis, developed countries do not ignore the need to stimulate the development of enterprises by tax methods. consequently, in order to improve the business environment even in our country, it is necessary to increase the efficiency of the fiscal incentive mechanism in the tax system, in particular, in relation to small businesses, and optimize the tax burden. conclusion. in our country, today it will be necessary to use the advanced experience of foreign countries to stimulate the activities of taxpayers to improve the national tax system and increase the efficiency of tax collection. let's consider some promising conclusions in these areas. using the experience of providing benefits for timely payment of taxes and fees. many countries offer tax rebates or tax breaks to allow taxpayers to pay taxes on time. this will motivate taxpayers to comply with the payment deadlines for taxes and fees that they must pay and, as a result, provide an opportunity to save on a certain amount of tax. benefits offered in the form of interest-free periods. some countries provide interest-free periods for taxpayers for a certain period of time after the expiration of their validity in the form of submission of interest-free terms by type of tax. simplify the process of filing tax returns for taxpayers. this process is presented when submitting applications electronically. electronic filing of tax returns btshlib, introduced in many developed countries, this method serves to make the tax payment process more convenient and effective. benefits are also provided to pre-filled declarations in certain countries. these countries provide taxpayers with pre-filled returns based on information available to the tax authorities. this will simplify the process of paying taxes and reduce the likelihood of errors. the exchange of information and cooperation with other countries within the framework of international cooperation will help to identify and prevent tax evasion in cross-border operations. risk-based auditing, on the other hand, allows the use of analytical methods to identify taxpayers at high risk of tax evasion to direct auditing to the most important areas. summary and recommendations from the above, even in the national tax system, it is advisable to provide tax benefits to business entities using the advanced experience of foreign countries. these are: introduction of a mechanism for the provision of tax benefits only by the tax code and abandonment of the experience of granting individual tax benefits; application of the experience of effective monitoring of tax deductions. assessing the impact of these tax incentives is critical to ensuring that they are used purposefully and efficiently. here we can use american journal of business management, economics and banking volume 37 june2025 p a g e | 89 www.americanjournal.org the method of determining the goal in its place. for example, identifying the goals of tax incentives to encourage investment, create new jobs, or support certain sectors; -providing tax benefits and loans for enterprises that invest in r & d and innovation. benefits in this direction stimulated innovation, the process of creating new products and services; to provide tax incentives to attract investments in energy-saving technologies and the green economy. benefits and various grants in this area will lead to a decrease in energy consumption and industrial gas emissions; providing tax benefits to charitable organizations. the tax credits given to charity help increase charity work and support social programs and projects. the effectiveness of tax benefits will also depend on their specific design, target groups and the tax culture that is formed in each country. regular monitoring will be necessary to achieve the objectives of the provision of tax benefits and ensure their effective use in their direction. references 1. resolution of the president of the republic of uzbekistan no. 364 dated august 30, 2022 "on measures to implement the tasks set in the "open dialogue" of the president of the republic of uzbekistan with entrepreneurs in 2022". 2. жук е.м. стимулирование предпринимательской деятельности на основании усовершенствования налогового регулирования. url: http://intkonf.org/zhuk-emstimulyuvannyapidpriemnitskoyi-diyalnosti-na-pidstaviudoskonalennya-podatkovogoregulyuvannya (дата обращения: 20.01.2020).. 3. григорьева и.с. анализ зарубежной практики налогового стимулирования инновационной деятельности // академическая публицистика. 2019. № 12. с. 113-116. 4. priorities of tax incentives: global experience. materials of the analytical center "akademiya". url: http://www.academia.org.ua (date of access: 25.01.2020). american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 146 www.americanjournal.org the main factors that form social activity in young people: education, culture and media dilrabo abidova andijon davlat pedagogika instituti tadqiqotchisi a b s t r a c t k e y w o r d s this academic article analyzes the formation of youth social activity through key factors such as education, culture, and media. education, culture, and media play a significant role in developing the youth’s consciousness, encouraging their active participation in societal changes. the paper emphasizes the role of the education system in preparing youth for social responsibility, the influence of culture in shaping moral values, and the importance of media in increasing youth engagement. these factors, working in harmony, serve to involve youth in societal transformations. youth, social activity, education system, culture, media, moral values, society, humanities, philosophy, media outlets. introduction social activity of young people is seen not only as a virtue of their place in society but also as an important factor influencing the development of society. youth activism today is shaped by many factors, particularly through education, culture and media. these factors play a major role in the development of social consciousness, spiritual values, and responsibility towards society. in a philosophical approach, the mechanisms that shape these factors and their impact on the minds of young people should be studied in depth. 1. education system is the basis of social activity education is not only the imparting of knowledge, but it is the most important tool for shaping the minds of the youth. according to john dewey's thoughts on education, education is not just about the transfer of knowledge, but is the basic form of preparing young people for social life1. through education, young people will understand their place in society and sense of responsibility towards themselves and society. this process is carried out with the help of humanities, philosophy, history, and social sciences, in particular. social activity of young people develops through the concepts of values, responsibility and justice, expressed in education. in hegel's philosophy, the process of self-realization leads to activity in society. young people will understand how they should show themselves in society through education, with what activities they 1 dewey j. democracy and education. – new york, 1916 american journal of business management, economics and banking volume 35 april 2025 p a g e | 147 www.americanjournal.org should contribute to society2. this activism, in turn, increases the enthusiasm of young people to bring about change in society. 2. culture – the formation of values and social activity culture is one of the most important factors that shape the social activity of the young. through culture, national customs, traditions and moral values, young people understand their place in society. cultural values, in turn, play an important role in the formation of young people's responsibility for society and in making decisions on social issues. according to aristotle's ideas on social activity, culture and morality are the basis of social systems and are necessary in making decisions about the social role of the individual and his role in society3. the cultural heritage and values of society encourage young people to see themselves as an integral part of society, to solve problems in society. culture provides for the spiritual and spiritual development of young people and involves them not only in physical, but also spiritual activities. 3. media – mass media and social activity of youth today, the media is the most powerful tool for the formation of social activity of young people. media, especially internet and digital media, shape young people's way of thinking, worldview and attitudes to social issues. marshall mcluhan evaluated media as an expanding factor in a person's sensory system and extensively studied their impact on changes in society4. media not only acquaints young people with modern realities, shapes their reactions to changes in society, their sense of responsibility and participation in the implementation of the changes. media, with its ability to disseminate information quickly, plays an active role in the rapid response, promotion and implementation of social issues of young people. through the media, young people will be able to connect to global social networks and reflect on global issues. 4. harmony between education, culture and media the correlation of the factors of education, culture and the media plays an important role in the formation of young people's social activity. the education system prepares young people for social activity, through culture a system of values is formed, and the media provides the expansion and urgency of information. through this harmony, young people are encouraged to actively participate in the changes in society. to ensure stability in society and increase social responsibility, these three factors must work as complementary mechanisms. today, youth social activity stands out as an important factor of social, political and economic development of society. the formation of this activity needs to be determined not only by external factors, but also on spiritual, cultural and philosophical foundations. the article shows that factors such as education, culture and media are the main mechanisms that shape the social activity of young people. education is the foundation for shaping the minds of young people, culture is a tool for conveying to them a system of values and moral standards, and the media is a platform that develops reaction to rapid changes in society and forms global thinking. 2 hegel g.v.f. history of philosophy – t.: uzbekistan, 2001. – b. 217 3 aristotle. nicomachus morality. – t.: gafur gulyam nmiu, 2004. b. 96 4 mcluhan m. understanding media: the extensions of man. – mit press, 1994 american journal of business management, economics and banking volume 35 april 2025 p a g e | 148 www.americanjournal.org education not only provides young people with knowledge, but also teaches them social and moral responsibility. the integration of humanities and philosophy into the educational process has a significant impact on the development of young people's minds and their social activity. the benefits of these transformations for society are that young people will not only acquire theoretical knowledge, but will be able to apply it in practice, solving social problems. culture, in turn, shapes the moral and aesthetic education of the individual, acquaints him with the cultural heritage of his people. young people will be able to understand their national and cultural values and determine their place in society. the culture also introduces young people to the different social systems and approaches to social justice in society. this, in turn, increases the activism and determination of young people to fight for change. media, with its instant dissemination of information, broadens the outlook of the youth. the internet and social networks provide opportunities for young people to acquire new knowledge and actively participate in the social and political changes taking place around the world. media encourages young people to actively participate in areas such as global change, science, culture, and politics. however, it is necessary to pay special attention to the quality of information disseminated through the media and its impact on the minds of young people. all of these factors together help shape youth activism not only externally, but internally, through conscious decisions. social activism, first of all, from the point of view of spirituality, ethics and ethics, increases their responsibility in social life, strengthens the place of the individual in society. the following proposals are put forward; adaptation of the education system to the formation of social activism: in the education system, special attention should be paid to the humanities, philosophy, history and ethics. philosophically, it is necessary to develop programs aimed at developing youth social awareness, preparing them to positively influence changes in society. at the same time, it is necessary to provide young people not only with theoretical knowledge, but also with practical social experience. widespread promotion of culture and national values among young people: it is necessary to continue to involve culture in social activity by instilling culture in the minds of young people. through cultural events, art and literature, young people should learn moral norms, national values, strong social ties. in this process, learning on the basis of national traditions and customs serves to strengthen the social consciousness of the youth. turning the media into a platform for young people to develop scientific and social activism: to improve the impact of media on the minds of young people, it is necessary to create platforms through which not only information is disseminated, but also scientific and social discussions, exchange of ideas and problem-solving. organizing interactive discussions for young people on science, culture, history, and politics in the media and online social media can help engage them in social change. references 1. dewey j. democracy and education. – new york, 1916 2. hegel g.v.f. history of philosophy – t.: uzbekistan, 2001. – b. 217 3. aristotle. nicomachus morality. – t.: gafur gulyam nmiu, 2004. b. 96 4. mcluhan m. understanding media: the extensions of man. – mit press, 1994. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 25 www.americanjournal.org formation and enhancement of household incomes in the regional economy author: azizbek madiev a b s t r a c t k e y w o r d s this study examines the relationship between population incomes and regional development in uzbekistan, highlighting the socio-economic disparities that have emerged across different regions. drawing on statistical data from 2010 to 2024, the research analyzes trends in interregional income inequality, as well as the dynamics of real and nominal incomes over time. special attention is given to the mechanisms of state regulation and their effectiveness in reducing economic disparities and promoting balanced regional growth. the findings contribute to a deeper understanding of how income formation processes influence regional economic development and provide insights into policy measures aimed at enhancing household welfare and income equality. population incomes, regional development, economic inequality, income regulation, real incomes introduction the relationship between population income and regional development is considered one of the most pressing issues in the modern global economy. according to world bank data, although global economic growth stabilized at 2.6% in 2024, this figure remains significantly lower than the precovid-19 decade’s average growth rate of 3.1%.1. middle-income countries account for 75% of the global population and 62% of the world’s poor, produce 33% of global gdp, and serve as key drivers of economic growth.2. international financial institutions propose a comprehensive approach to reducing regional income inequality. according to the world bank, while real income growth plays an important role in developing countries, the rise in inequality levels slows down the process of poverty reduction. in uzbekistan, the issue of household incomes and regional development holds particular significance. in 2024, the country’s real gdp growth reached 6.5%, an improvement compared to 6.3% in 2023. meanwhile, the poverty rate declined from 13.4% in 2023 to 10.9% in 2024, primarily due to rising wages, increased employment, and the growth of agricultural and business incomes among the 1 jahon banki. global iqtisodiy istiqbol. 2024-yil iyun holatiga ko'ra. https://www.worldbank.org/en/publication/global-economicprospects 2 jahon banki. o'rta daromadli mamlakatlar: rivojlanish yangiliklari, tadqiqotlar, ma'lumotlar. https://www.worldbank.org/en/country/mic/overview american journal of business management, economics and banking volume 41 october2025 p a g e | 26 www.americanjournal.org population.3. at the same time, according to the world bank, regional economic inequality in uzbekistan has been increasing: in 2020, the wage gap between tashkent and surkhandarya regions was 74%, while by 2024, this difference had widened to 2.3 times. this situation highlights the need to reassess regional economic policies and to strengthen mechanisms that ensure balanced socio-economic development across the country. uzbekistan has set the goal of achieving upper-middle-income country status by 2030, which requires maintaining stable income growth and addressing disparities between regions through inclusive and targeted development strategies. uzbekistan has set the goal of attaining the status of an upper-middle-income country by 2030, making the sustainable growth of population incomes a key national priority. according to forecasts by the asian development bank, uzbekistan’s gdp growth is expected to reach 6.6% in 2025. despite significant achievements in reducing poverty, the persistent rise in inequality continues to slow the pace of poverty reduction. experts emphasize that additional measures are required to raise the incomes of low-income households, as these families generally face lower employment opportunities, possess lower levels of education, and are less engaged in entrepreneurial activities. to ensure balanced regional development, it is essential to strengthen transport and logistics infrastructure, expand the digital economy, promote greater labor market participation among youth and women, and diversify external economic relations. these factors collectively represent critical directions for fostering inclusive and sustainable economic growth across uzbekistan’s regions. literature review the issue of population incomes has a long history in economic theory, with various approaches developed by scholars ranging from classical economists to contemporary researchers. adam smith, in his seminal work “the wealth of nations,” emphasized the principles of fair distribution of labor outcomes and viewed income as a reflection of productive contribution4, david ricardo further developed the theory of economic value and income distribution, exploring how wages, profits, and rents are determined within the production system5. according to representatives of the classical school, income serves as both the main source of economic growth and a key indicator of social welfare. in the twentieth century, the problem of income formation and distribution was examined more profoundly within the framework of modern economic thought6. john maynard keynes, in his “general theory of employment, interest, and money,” analyzed the interrelation between effective demand, consumption behavior, and income levels. keynesian economists highlighted that the distribution of income plays a decisive role in ensuring macroeconomic stability, influencing aggregate demand, employment, and overall economic performance. in modern economic literature, the issue of population incomes is being studied extensively. the development of the market economy necessitates a theoretical re-evaluation of the processes taking place within distributional relations and a renewed understanding of their essence.7. this 3 jahon banki. o'zbekiston: rivojlanish yangiliklari, tadqiqotlar, ma'lumotlar. https://www.worldbank.org/en/country/uzbekistan/overview 4 smith a. an inquiry into the nature and causes of the wealth of nations. london: w. strahan and t. cadell, 1776. 576 p. 5 ricardo d. on the principles of political economy and taxation. london: john murray, 1817. 333 p. 6 keynes j.m. the general theory of employment, interest and money. london: macmillan, 1936. 403 p 7 atkinson a.b. inequality: what can be done? cambridge: harvard university press, 2015. 384 p. american journal of business management, economics and banking volume 41 october2025 p a g e | 27 www.americanjournal.org transformation primarily necessitates a renewed conceptualization of the theoretical foundations underlying the notion of population incomes, along with a comprehensive analysis of its multifaceted structural composition and functional dimensions. in contemporary research, the issue of population incomes is often analyzed from the perspective of the microand macroeconomic mechanisms underlying their formation, as well as the spatial and temporal characteristics of income distribution under various economic conditions8. however, in many cases, this issue is examined primarily within the context of its intrinsic relationship with poverty indicators and the institutional mechanisms of social protection. the one-dimensional nature of such an approach is frequently emphasized in the academic literature9. the problem of regional and social inequality has become one of the central topics in modern economic literature. in his influential research, thomas piketty demonstrated the growing trends of wealth and income inequality under the conditions of capitalism in the twenty-first century10. according to his findings, the concentration of incomes in many developed countries has reached a high level, posing a significant threat to social stability. joseph stiglitz emphasized the negative impact of inequality on economic growth and substantiated the necessity of ensuring fairness in income distribution11. his research demonstrates that high levels of inequality reduce economic efficiency and constrain social mobility. issues of regional economic development constitute a distinct field of research. in his new economic geography theory, paul krugman analyzed the causes and consequences of the concentration of regional economic activity12. according to his model, agglomeration effects and transportation costs are considered the main factors contributing to regional inequality. in uzbekistan, issues related to population incomes and regional development have been actively studied in recent years. the new uzbekistan development strategy identifies increasing population incomes and reducing poverty as priority areas of national policy13. among local researchers, n.k. karimov and y.sh. abdullayev have conducted in-depth analyses of the economic development characteristics of uzbekistan’s regions.14. their research highlights the interrelationship between regional infrastructure, the investment environment, and human capital i.a. usmanov and b.o. tursunov have analyzed the mechanisms of state regulation of incomes in uzbekistan15. according to their conclusions, the mechanisms of minimum wage regulation and the indexation system have improved; however, it remains necessary to introduce a progressive tax system and to expand social protection programs. 8 deaton a. the great escape: health, wealth, and the origins of inequality. princeton: princeton university press, 2013. 376 p. 9 ostry j.d., berg a., tsangarides c.g. redistribution, inequality, and growth // imf staff discussion note. 2014. sdn/14/02. 30 p. 10 piketty t. capital in the twenty-first century. cambridge: harvard university press, 2014. 685 p. 11 stiglitz j.e. the price of inequality: how today's divided society endangers our future. new york: w.w. norton & company, 2012. 560 p. 12 krugman p. geography and trade. cambridge: mit press, 1991. 142 p. 13 decree of the president of the republic of uzbekistan “on the development strategy of new uzbekistan for 2022–2026,” no. up-60, dated january 28, 2022. collection of legislation of the republic of uzbekistan, 2022, no. 4, article 35. 14 kayumov, n.k., & abdullaev, y.sh. regional aspects of the economic development of uzbekistan. tashkent: “iqtisod-moliya” publishing house, 2023. 256 p. 15 usmanov, i.a., & tursunov, b.o. “mechanisms of state regulation of population incomes in uzbekistan.” scientific bulletin of samarkand state university. series: economics, 2023, no. 4(118), pp. 72–81. american journal of business management, economics and banking volume 41 october2025 p a g e | 28 www.americanjournal.org research methodology in the research process, various analytical methods were employed, including statistical analysis, comparative analysis, trend analysis, and structural analysis. the study utilized official statistical data from the world bank, the asian development bank, and the state committee on statistics of the republic of uzbekistan. in addition, government reports, normative and legal documents, and academic publications were thoroughly examined to ensure a comprehensive understanding of the research problem. discussion and results the development of the market economy necessitates a theoretical reassessment of the processes taking place within distributional relations and a renewed understanding of their underlying essence. this transformation primarily requires a redefinition of the scientific and theoretical foundations of the concept of population incomes, along with an analysis of its complex structural composition and functional characteristics. furthermore, this concept encompasses the dynamic nature of population stratification, its influence on socio-economic differentiation, and the empirical observation of structural changes in living standards and their long-term trends. this process, in turn, calls for a systematic analysis of the formation, growth, and diffusion of incomes based on the development and implementation of a consistent and well-targeted income policy. table 1 key economic instruments of state regulation of population incomes tartibga solish usuli mechanism scope of application advantages disadvantages level of effectiveness establishment of the minimum wage establishing minimum wage standards in budgetary and non-budgetary sectors all employers ensures the reproduction and maintenance of the labor force dependent on the overall economic capacity high fiscal (tax) policy progressive taxation, tax benefits, and exemptions various income groups performs the function of income redistribution may contribute to the expansion of the shadow economy moderate income indexation increasing incomes in line with rising prices pensions, benefits, and wages protects against inflation increases the budget burden high subsidies and privileges providing support to small businesses, agriculture, and social sectors selectively applied stimulates economic growth increases budget expenditures moderate the growth of the minimum wage in society depends on the level of economic capacity that emerges at a certain stage of development. if this factor is not taken into account, it may lead to delays in salary payments to employees and budget deficits. at the same time, the minimum wage should be determined american journal of business management, economics and banking volume 41 october2025 p a g e | 29 www.americanjournal.org based on the subsistence minimum—meaning the amount of money necessary to ensure the normal physical reproduction of the labor force—which, in turn, is closely linked to the state’s monetary policy. in contemporary academic research, the issue of household income is often analyzed from the perspective of its microand macroeconomic formation mechanisms or the spatial and temporal distribution of income under various economic conditions. however, in many cases, this issue is examined mainly within the context of its interrelation with poverty indicators and the institutional mechanisms of social protection. the one-dimensional nature of such an approach is frequently emphasized in the academic literature. therefore, the quantitative and qualitative changes in income levels, as well as the transformation of distribution principles, must be examined comprehensively within the terminological and methodological framework of the broader economic system and the fundamental theories of income distribution. table 2 regional specificities in the regulation of household incomes urban areas income level key challenges regulatory directions recommendd measures urban areas high significant inequality and high cost of living strengthening social protection progressive taxation and housing programs rural areas low poverty and limited employment opportunities promoting economic development support for the agricultural sector industrial zones medium delayed wage payments and unemployment protecting labor rights strengthening the activities of trade unions peripherl regions very low isolation and inadequate infrastructure implementing special government programs wage supplements and transport subsidies during the course of economic reforms, regional differences in household income levels, poverty incidence, and consumption standards may give rise to a number of adverse socio-economic tendencies. it is noteworthy that the intensification of these disparities can exacerbate social tensions and ultimately undermine the sustainability of economic transformation processes. one of the most critical challenges in this context is the increasing spatial stratification of incomes, which often proves to be both economically inefficient and socially undesirable. the highest per capita income levels are recorded in tashkent city, tashkent region, and navoi region, largely attributable to the concentration of industrial production, as well as the more advanced development of social and market infrastructure in these areas. moreover, the application of regional wage coefficients and supplementary payments has further contributed to income polarization between regions. american journal of business management, economics and banking volume 41 october2025 p a g e | 30 www.americanjournal.org figure 1. growth rates of real per capita household income (2010–2024)16 real incomes are considered one of the most accurate indicators reflecting the standard of living of the population, as this indicator represents income growth adjusted for inflation. as shown in the graph above, during the period from 2010 to 2019, real incomes in the republic of uzbekistan maintained stable growth rates. in particular, in the bukhara region, this indicator was 129.4% in 2011 and 110.4% in 2013. however, in 2020, under the influence of the pandemic, the growth of real incomes significantly declined across all regions. nationwide, in 2020, the growth rate amounted to 98.2%, while in the bukhara region it fell to 98.5%. this clearly indicates a decrease in the level of real incomes, reflecting the impact of inflation and economic crisis factors. in 2021–2022, real incomes began to recover: in the bukhara region, they reached 111.9% in 2021 and 105.9% in 2022. however, in 2023–2024, this indicator again showed a downward trend, indicating regional disparities and the need for stronger economic policies. the fact that real incomes have not achieved the same steady growth as nominal incomes highlights the importance of social protection, employment, and price stability. 16 muallif tomonidan tuzilgan. american journal of business management, economics and banking volume 41 october2025 p a g e | 31 www.americanjournal.org figure 2. nominal per capita income by region in 2024 (in thousand soums)17 as can be seen from the diagram above, by the end of 2024 there are significant differences in nominal per capita income across regions. the highest figure was recorded in tashkent city, where per capita income reached 38,112 thousand soums. this is associated with the capital’s high level of economic activity, the dominance of the service sector, higher wages, and strong investment potential. conclusion based on the research findings, the following conclusions have been drawn: firstly, over the past fifteen years, household incomes in uzbekistan have demonstrated a stable upward trend in nominal terms. between 2010 and 2024, the average nominal income across the republic increased by 4.2 times. however, the dynamics of real incomes present a more complex picture. real income growth remained stable between 2010 and 2019 (averaging 110–115% annual growth), sharply declined in 2020 under the impact of the covid-19 pandemic (98.2%), and then began to recover in 2021–2022 (111.9% and 105.9%, respectively). nevertheless, in 2023–2024, a slowdown in this growth trend was again observed. this trend indicates that the growth of nominal incomes does not necessarily equate to an improvement in the standard of living. factors such as inflation, rising consumer prices, and fluctuations in the exchange rate have a significant impact on the dynamics of real incomes. therefore, in state policy, it is essential not only to increase the volume of incomes but also to preserve their purchasing power. secondly, the research has revealed that interregional economic inequality in uzbekistan has been systematically increasing. by the end of 2024, the average nominal income per capita in tashkent city 17 compiled by the author. american journal of business management, economics and banking volume 41 october2025 p a g e | 32 www.americanjournal.org reached 38,112 thousand soums, while in some regions this figure remained around 18–20 thousand soums. this means that the income gap between the wealthiest and the poorest regions has widened to nearly twofold. a particularly concerning aspect is the fact that this inequality continues to deepen. according to the world bank, the wage gap between tashkent and the surkhondaryo region was 74% in 2020, but by 2024, it had expanded to 2.3 times. this situation highlights the urgent need to fundamentally revise regional economic policies and demonstrates the serious challenges faced in ensuring the principles of social justice. among the main causes of regional inequality, the following factors stand out: the concentration of industrial enterprises and large investment projects in tashkent city and certain provinces; uneven development of transport and logistics infrastructure; regional disparities in access to education and professional training opportunities; limited access to market infrastructure and financial services in peripheral areas; low penetration of digital technologies in rural regions. thirdly, uzbekistan has achieved significant progress in poverty reduction. the poverty rate decreased from 13.4% in 2023 to 10.9% in 2024, marking a 2.5 percentage point decline—equivalent to approximately 850,000 people moving above the poverty line. this positive outcome resulted from several key factors: the regular increase of the minimum wage (reaching 965,000 soums in 2024); indexation of social benefits and pensions; government programs supporting small businesses and entrepreneurship; employment programs and measures aimed at creating new jobs; the rise in agricultural product prices, which boosted rural household incomes. however, the recent slowdown in poverty reduction rates points to emerging challenges. the widening inequality is complicating further progress in poverty alleviation. according to world bank experts, reaching the “last 10%”—that is, lifting the poorest segment of the population above the poverty threshold—remains the most difficult task. fourthly, the analysis of the mechanisms for regulating household incomes by the state yielded the following conclusions: the minimum wage mechanism remains one of the most effective tools for income regulation. an increase in the minimum wage not only has a direct impact on low-income workers but also generates a multiplier effect throughout the entire wage system. however, the effectiveness of this mechanism depends on the economy’s capacity to sustain minimum wage payments. in certain sectors— particularly small businesses and agriculture—a high minimum wage may lead to the expansion of informal employment beyond the scope of legal regulation. the indexation mechanism serves as an effective means of protecting incomes from inflation. regular indexation of pensions, benefits, and social transfers helps maintain the income levels of the most vulnerable social groups. however, this approach increases the budgetary burden and is constrained by the state’s fiscal capacity. american journal of business management, economics and banking volume 41 october2025 p a g e | 33 www.americanjournal.org the system of subsidies and privileges is selectively applied to support specific sectors and social groups. subsidies provided to small businesses and agriculture stimulate economic growth, yet their effectiveness requires continuous monitoring and evaluation. fifthly, the analysis of regional specificities has produced several key findings: urban areas, particularly tashkent city, are characterized by higher income levels and welldeveloped economic infrastructure. nevertheless, intra-urban inequality remains significant. high living costs, rising housing prices, and expensive services create serious challenges for a segment of the urban population. for these areas, progressive taxation, social housing programs, and targeted social assistance are crucial policy priorities. rural areas are marked by low income levels, limited employment opportunities, and weak infrastructure. the main source of income for the rural population is agriculture, which is highly sensitive to seasonal fluctuations, weather conditions, and market price dynamics. diversifying employment, promoting non-agricultural rural enterprises, and expanding access to financial services are essential measures for sustainable rural development. industrial regions (such as navoi, fergana, and andijan) have moderate income levels. strengthening trade union activities, improving the labor inspection system, and reinforcing worker protection mechanisms are necessary to ensure fair labor conditions. peripheral regions (including certain mountainous and desert territories) are characterized by very low incomes, geographical isolation, and insufficient infrastructure. these areas require special state programs, the introduction of regional wage supplements, and transport subsidies to improve living standards and connectivity. sixthly, uzbekistan’s goal of achieving upper-middle-income country status by 2030 requires substantial structural transformations. according to forecasts by the asian development bank (adb), uzbekistan’s gdp is expected to grow by 6.6% in 2026. while this is a positive outlook, achieving the upper-middle-income threshold will necessitate addressing several fundamental challenges, including productivity growth, income diversification, and equitable regional development. references 1. decree of the president of the republic of uzbekistan dated january 28, 2022, no. pf–60 “on the development strategy of new uzbekistan for 2022–2026.” collection of legislative acts of the republic of uzbekistan, 2022, no. 4, article 35. 2. world bank. “world bank reports increasing economic disparity in uzbekistan.” may 13, 2024. available at: https://kun.uz/en/news/2024/05/13/world-bank-reports-increasing-economicdisparity-in-uzbekistan 3. world bank. global economic prospects. as of june 2024. available at: https://www.worldbank.org/en/publication/global-economic-prospects 4. world bank. middle-income countries: development news, research, and data. available at: https://www.worldbank.org/en/country/mic/overview 5. world bank. uzbekistan: development news, research, and data. available at: https://www.worldbank.org/en/country/uzbekistan/overview 6. atkinson, a. b. inequality: what can be done? cambridge: harvard university press, 2015. 384 p. https://kun.uz/en/news/2024/05/13/world-bank-reports-increasing-economic-disparity-in-uzbekistan https://kun.uz/en/news/2024/05/13/world-bank-reports-increasing-economic-disparity-in-uzbekistan https://www.worldbank.org/en/publication/global-economic-prospects https://www.worldbank.org/en/country/mic/overview https://www.worldbank.org/en/country/uzbekistan/overview american journal of business management, economics and banking volume 41 october2025 p a g e | 34 www.americanjournal.org 7. deaton, a. the great escape: health, wealth, and the origins of inequality. princeton: princeton university press, 2013. 376 p. 8. keynes, j. m. the general theory of employment, interest and money. london: macmillan, 1936. 403 p. 9. krugman, p. geography and trade. cambridge: mit press, 1991. 142 p. 10. asian development bank. “uzbekistan’s economic growth in 2025.” april 9, 2025. available at: https://www.adb.org/news/adb-highlights-uzbekistans-economic-growth-2025 11. ostry, j. d., berg, a., & tsangarides, c. g. redistribution, inequality, and growth. imf staff discussion note, 2014, sdn/14/02, 30 p. 12. piketty, t. capital in the twenty-first century. cambridge: harvard university press, 2014. 685 p. 13. ricardo, d. on the principles of political economy and taxation. london: john murray, 1817. 333 p. 14. smith, a. an inquiry into the nature and causes of the wealth of nations. london: w. strahan and t. cadell, 1776. 576 p. 15. stiglitz, j. e. the price of inequality: how today’s divided society endangers our future. new york: w.w. norton & company, 2012. 560 p. 16. kayumov, n. k., & abdullaev, y. sh. regional aspects of economic development of uzbekistan. tashkent: iqtisod-moliya publishing house, 2023. 256 p. 17. usmanov, i. a., & tursunov, b. o. “mechanisms of state regulation of population income in uzbekistan.” scientific bulletin of samarkand state university. series: economics, 2023, no. 4(118), pp. 72–81. https://www.adb.org/news/adb-highlights-uzbekistans-economic-growth-2025 american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 135 www.americanjournal.org tendencies in attracting direct green investments to the economy of world countries khoshimov jakhongir ravshanbek ugli associate professor, phd. тashkent state universitity of economics, department of "evaluation work and investments" a b s t r a c t k e y w o r d s the article examines the trends of attracting green direct investments to the world economy. it is also given as an example of the countries attracting the most active green investment to the world economy. during 2013-2023, foreign direct investments attracted to the economies of the world countries and the volume of green investments made in developing markets by region were analyzed. direct investment, green investment, green by iceland, green lab, low carbon green fund, carbon, sustainable energy. introduction as the world faces complex challenges related to climate change and resource depletion, transitioning to sustainable practices is not only a moral imperative but also a pragmatic economic decision. investors who recognize the potential benefits of green investments not only contribute to environmental well-being, but also position themselves to thrive in a changing economic landscape. as governments, businesses, and consumers increasingly prioritize sustainability, green investments are emerging as an attractive path to achieving both environmental and economic goals. green foreign direct investment (gfdi) is the investment by foreign investors in clean technologies, practices, projects and capital in a host country. this type of investment aims to support development and address issues such as pollution, climate change and resource depletion. by adopting sustainable technologies and practices, foreign investors can improve performance and help transition to a carbonneutral market. fdi can include investments in energy projects, energy-efficient infrastructure, waste management systems and sustainable agricultural practices. over the years, fdi has become a key focus of efforts to combat climate change and support sustainable development. the intensification of global competition in the world economy, the expansion of the financial and economic restrictions regime, create the need to implement an investment policy aimed at actively attracting green foreign direct investment, increasing the attractiveness of the investment environment and ensuring the competitiveness of economic sectors. according to the world bank, the investment rate in the economy is 29.4 percent in middle-income countries, 23.9 percent in uzbekistan, 25.4 percent in kazakhstan, 28.3 percent in malaysia, 29.3 percent in singapore, 32.3 percent in india, and american journal of business management, economics and banking volume 34 march 2025 p a g e | 136 www.americanjournal.org 41.4 percent in china. trends in attracting green direct investment to the economies of countries around the world are considered one of the most pressing issues today. review of related literature let us consider the following definitions of foreign and domestic economists on attracting foreign direct investment. g.m. galeeva and e.n. kadeeva the main factors in attracting foreign direct investment are access to markets and resources. the concentration of foreign capital only in certain regions and in certain sectors limits the development of the economy of other regions, primarily affecting the economy of underdeveloped regions. b.a. vakhobov foreign direct investment is an investment that allows the investor to exercise effective control over its economic activities, allowing the investor to own a long-term, at least 10 percent of the firm's share or shareholder capital. n.n. oblomurodov's scientific research studies studied the macroeconomic factors of improving the system of attracting foreign direct investment, and it is noted that investment attractiveness and investment activity play a high role in improving the system of attracting investment. b. mamatov, d. khujamkulov, and o. nurbekov in their research focus on the importance of foreign direct investment in the development of the national economy, in particular, they cite the fact that this type of investment directs production capital to the production of goods and services, as well as through the purchase of a controlling stake in a firm or enterprise, the construction of production facilities, the establishment of joint ventures, etc. according to a.sh. bekmurodov, foreign direct investment is the direct export of capital that gives the investor the right to control the enterprise, thereby turning the enterprise into a foreign subsidiary of the main parent company. research methodology. the article uses methods such as scientific interpretation, generalization and abstraction of theoretical information, processing of statistical data through software, observation, systematization, comparison, induction and deduction. results and discussion. the countries that are attracting the most active green investment into the global economy today are: 1. iceland iceland is the second european country to generate more electricity from renewable sources than it consumes. it ranked 1st in carbon emissions and 2nd in clean innovation in the 2022 green future index. the icelandic economy currently uses 85% of its energy from renewable sources. iceland plans to invest heavily in sustainability with the aim of becoming carbon neutral by 2040. green by iceland promotes sustainable and renewable energy solutions and expertise in its own country. this is to help other countries’ economies and businesses move faster to prevent the devastating effects of climate change in the future. 2. denmark denmark is actively investing in sustainable energy and, as a result, becoming greener. one example is greenlab, which is part of a wider decarbonization effort across denmark. greenlab produces green and sustainable energy that makes a positive contribution to the environment. in particular, the energy american journal of business management, economics and banking volume 34 march 2025 p a g e | 137 www.americanjournal.org systems installed by greenlab are based on a circular economy in order to extend the life cycle of products. denmark is making concerted efforts to transition to a green economy and is a leader in climate policy in the space. 3. the netherlands the netherlands is recognized as a leader in green transport, especially in public transport. an example of this is the introduction of clean energy passenger trains since 2017. the dutch government has signed agreements with several sectors to reduce greenhouse gas emissions. according to the agreement, all buses in the netherlands must run on 100% renewable energy or fuel from 2025 and be emission-free by 2030. 4. great britain the uk is a world leader in renewable energy generation. the uk's renewable energy market is attracting both domestic and foreign investment. for example, there was a significant investment in the offshore wind sector in 2022. the bank of england has also placed climate and environmental risks at the heart of its mandate and is a global leader in sustainable finance. 5. norway norway can be described as a sustainable country. this has been achieved through various measures. these include switching to electric transport, implementing recycling initiatives and investing in resources to reduce pollution as much as possible. norway has already started the transition to a green economy. for example, the business sector has prepared roadmaps for green competitiveness in various sectors, including the waste management sector, and green investments are only being made in retail and wholesale, except for the packaging industry. analyzing the data in figure 1, global foreign direct investment flows are projected to decline by 7% in 2023 to us$1,364 billion, marking the second consecutive year of declining trends and being significantly lower than the pre-pandemic period. figure 1. the volume of foreign direct investment attracted to the economies of the world countries during 2013-2023 1499.6 1525.1 2662 1930.2 1717.8 1277.2 1533.5 886.6 1834.5 1466.6 1364.2 1.9 1.9 2.7 2.5 2.1 1.5 1.8 1.1 1.9 1.5 1.3 0 0.5 1 1.5 2 2.5 3 0 500 1000 1500 2000 2500 3000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 global foreign direct investment flows billion us dollars global foreign direct investment flows as a percentage of gdp american journal of business management, economics and banking volume 34 march 2025 p a g e | 138 www.americanjournal.org more than two-thirds of oecd and other economies contracted in 2023, with foreign direct investment (fdi) inflows falling to a record low, particularly in the people's republic of china, amid ongoing geopolitical tensions and high interest rates. overall, fdi inflows to non-oecd g20 countries fell by 46% in 2023. despite this overall downward trend, the united states, brazil and canada remained the top three recipients of fdi worldwide in 2023. as a result of the analysis of the data in figure 2, it can be said that low-carbon green investments in key sectors in 21 emerging markets amounted to about us$10.2 trillion, which is the total sum of all sectors in the markets in the next decade from 2020 to 2030. we can see that the largest share was in the east asia and pacific continents. figure 2. green investment in emerging markets by region between 2020 and 2030 (projected in trillions of us dollars) in developing countries, only 14 percent of green investments are financed by the private sector, while in developed countries, the share of the private sector is more than 81 percent. according to the strategy for the transition to a green economy of the republic of kazakhstan, “for the transition to a green economy by 2050, additional investment funds of 1 percent of gdp or an average of 3-4 billion us dollars per year are required annually.” within the framework of this concept, there is a need to mobilize a total of more than 90 billion us dollars in investment funds, the main part of which will be directed to improving energy efficiency, developing alternative energy sources, and gas infrastructure projects. according to the republic of korea’s green economy transition strategy, “the amount of funds allocated for green development purposes will be approximately 2 percent of gdp annually.” the republic of korea government has also established the low carbon green fund, which aims to support research and development in the field of renewable energy, establish an emissions trading system, and finance emission reduction projects. according to the international consulting firm mckinsey, “the amount of financing for green infrastructure in the g-20 or large 20 countries did not exceed us$160 billion per year on average in the 7-year period up to 2020, which is equivalent to 0.2 percent of gdp, while the current need is estimated to be 5.0 percent.” at the same time, private investment in infrastructure in middleand lowincome countries is even lower, with three-quarters of investment financed by the public sector, development banks, and export credit agencies. 0 2 4 6 8 10 12 total east asia and the pacific south asia latin america caribbean europe sub-saharan africa middle east and north america 10.2 5.1 2.8 1.3 0.6 0.3 0.2 american journal of business management, economics and banking volume 34 march 2025 p a g e | 139 www.americanjournal.org it should be noted that the paris agreement creates a solid basis for using international markets, increasing transparency and accountability of parties. in particular, recognizing the importance of international carbon markets, article 6 of the paris agreement allows parties to use international carbon trading, introduce generally accepted accounting principles, and use market mechanisms to reduce carbon emissions. according to the world bank, the amount of investment required for the transition to a “green economy” in uzbekistan to achieve a zero emission balance by 2060 is 4.0 percent of gdp per year in the energy sector and 9.0 percent in the transport sector. in general, the amount of investment required for decarbonization processes in the national economy is projected to range from 262 billion. usd to 341 billion. usd. if we look at the scale of our country, attracting green direct investments to the national economy is one of our most urgent tasks today. we will express this through the following facts. in particular: within the framework of the program for the transition to a "green" economy and ensuring "green" growth in the republic of uzbekistan until 2030, it was determined to implement work in the following areas. it is worth noting that reducing the specific emissions of greenhouse gases per unit of gross domestic product by 35 percent from the 2010 level; increasing the production capacity of renewable energy sources by 15 gw and bringing their share to more than 30 percent of the total volume of electricity generation; increasing energy efficiency in the industrial sector by at least 20 percent; reducing the volume of energy consumption per unit of gross domestic product by 30 percent, including by expanding the use of renewable energy sources; the tasks set were to significantly increase the efficiency of water use in all sectors of the economy, introduce water-saving irrigation technology on an area of up to 1 million hectares; expand green spaces in cities by more than 30 percent by planting 200 million seedlings per year and increasing the total number of seedlings to 1 billion; increase the reserve index of the republic's forest fund to more than 90 million cubic meters; and increase the level of recycling of generated solid household waste to more than 65 percent. conclusion the transition to a green economy in our country, the implementation of projects and programs aimed at introducing energy and resource-saving technologies, requires the development of a system of appropriate state preferences (incentives), improvement of the legal framework for the development of public-private partnerships, the widespread introduction of green instruments for attracting investments, the introduction of “green” criteria in the state investment program and the system of public procurement. the modern world economy is in a state of change and rebalancing, and the trends in regulating green foreign direct investment during this period demonstrate the efforts of leading countries to create new areas of growth around them. the formation of new investment relations and institutions, as well as the regulation of foreign trade, are currently used not only to create economic benefits for companies and consumers, but also to ensure technological independence, which ultimately limits economic growth and development. references 1. manba: oecd fdi in figures april 2024. https://www.oecd.org/investment/investmentnews.htm#:~:text=april%202024%20update%3a,f or%20the%20second%20consecutive%20year. https://www.oecd.org/investment/investmentnews.htm#:~:text=april%202024%20update%3a,for%20the%20second%20consecutive%20year https://www.oecd.org/investment/investmentnews.htm#:~:text=april%202024%20update%3a,for%20the%20second%20consecutive%20year american journal of business management, economics and banking volume 34 march 2025 p a g e | 140 www.americanjournal.org 2. https://www.statista.com/statistics/1245771/global-green-investment-by region/#:~:text=investments%20towards%20lowcarbon%20growth%20in%20key%20sectors%20across,among%20the%2021%20markets%20in %20the%20next%20decade. 3. dunning, john. rose by any other name….? fdi theory in retrospect and prospect. – university of reading and rutgers university, uk, 2000. 4. g.m.galeeva and e.n.kadeeva. problems of attracting foreign direct investment into the regional economy // journal of physics: conference series, 1730(2021) 012118, 2020. – p. 8. 5. a.b. vakhobov. (2010) foreign investments. – tashkent: finance, 2010. – t. – textbook. 6. oblomurodov n.n. theoretical foundations and priorities for attracting foreign direct investment. monograph. t.: science and technology, 2009, -108 p. 7. mamatov b.s., khujamkulov d.y., nurbekov o.sh. organization and financing of investments. t.: economy-finance, 2014. 94 p. 608 pages. https://www.statista.com/statistics/1245771/global-green-investment-by-region/#:~:text=investments%20towards%20low-carbon%20growth%20in%20key%20sectors%20across,among%20the%2021%20markets%20in%20the%20next%20decade https://www.statista.com/statistics/1245771/global-green-investment-by-region/#:~:text=investments%20towards%20low-carbon%20growth%20in%20key%20sectors%20across,among%20the%2021%20markets%20in%20the%20next%20decade https://www.statista.com/statistics/1245771/global-green-investment-by-region/#:~:text=investments%20towards%20low-carbon%20growth%20in%20key%20sectors%20across,among%20the%2021%20markets%20in%20the%20next%20decade https://www.statista.com/statistics/1245771/global-green-investment-by-region/#:~:text=investments%20towards%20low-carbon%20growth%20in%20key%20sectors%20across,among%20the%2021%20markets%20in%20the%20next%20decade american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 109 www.americanjournal.org improvement of the mechanism for regulating evaluation activities based on world experience khomitov k. z. professor of tsue kholboev i. u. master's student of tsue mobile: 90-187-49-55, email: metro8369@gmail.com a b s t r a c t k e y w o r d s this article provides recommendations for improving the mechanism for regulating appraisal activities based on models of world experience and their application in the practice of uzbekistan. the experience of models of such countries as the usa, the russian federation and germany in regulating appraisal activities, their maximum proximity to the requirements of the property appraisal services market, and in particular their contribution to stabilizing the value of property are also described. and this is just right for regulating the property appraisal services market in uzbekistan. property, cost, assessment, price, assessment activity, regulation, coordination, control, model, real estate market, property assessment services market. introduction an important condition for further deepening economic reforms in our country is the creation of a developed infrastructure of market relations, its main element is valuation. today, market valuation has taken its rightful place in the system of valuation activities. today, there are as many models of the property valuation services market as there are countries in the world. the main indicators of the property valuation services market differ in content and by type of property, but are similar in form. for example, the volume of services provided in the real estate valuation services market, the volume of services provided in the movable property valuation services market, the volume of services provided in the business valuation services market, the number of appraisal organizations, the volume of services provided by appraisal organizations, the rating of appraisal organizations, the ratio of the total volume of services provided in the property valuation services market to gdp (%), and the level of value capitalization of the property valuation services market, etc. these indicators can be divided into types of property, periods and regions, and various models and indicators, as well as approaches and methods, can be used to assess, analyze and forecast them. american journal of business management, economics and banking volume 34 march 2025 p a g e | 110 www.americanjournal.org for more than ten years, the results of various property valuations have served as the basis for many decisions in the private and public sectors. since valuation activity in the republic of uzbekistan is still a young activity and its regulation is not sufficiently well-developed, we can identify a number of problems when comparing it with the valuation activity and its regulatory procedures in other developed countries. and to overcome these problems, the experience of a number of developed countries, in particular germany, russia and the usa, was taken as an example. literature review among the scientists from the cis countries who studied the problematic aspects and relevance of the topic and cited them in their scientific research and studies, avverkhozina studied the legal aspects of valuation activities in his work “legal regulation of valuation activities” [1], while avverkhozina and mafedotova conducted a comparative analysis of international and russian legislation in the field of valuation activities in their monographs “comparative analysis of international and russian legislation in the field of valuation activities” [2]. we can also cite from our domestic scientists sh. shoha'zamiy [3], who developed valuation models and development concepts for the regulation and coordination of valuation activities, a. kravchenko, b. berkinov [4], k. khomitov [5], and others, who were engaged in property valuation research. research methodology in the course of the research, the works of foreign and domestic scientists on the features of international practice in regulating valuation activities, their role in the economy were studied and analyzed. the article effectively used methods such as theoretical observation, systematic approach, observation, generalization, analysis, synthesis, and also formulated conclusions and proposals on the problems of regulating valuation activities and their solutions. analysis and results in accordance with the russian federal law, in the production and economic practice of business entities, there is a need for professional services in the field of market or other types of property. no transactions on the sale and purchase of enterprises, insurance, resolution of property disputes, taxation and lending can be carried out without property valuation. especially in active types of valuation, there is a need for a fair and best-organized type of value. the criteria for the independence of the appraiser are taken from the ias international valuation standards. russian legislation also contains such a criterion, but it is not clear, information on the independence of the appraiser is located on page 16 of the law fq-135. the composition of the bodies supervising assessment activities in the russian federation is as follows: 1. federal property management agency (fmbfa); 2. retraining of personnel by the ministry of education (e.g., creating indirect training programs, upgrading the skills of assessment specialists); 3. committee for property management of the subjects of the russian federation; 4. self-regulatory bodies of evaluators. fbmfa is the most important body regulating the valuation process at the state level. it is responsible for constant supervision of audit companies and private appraisers, maintaining a register of appraisers and issuing licenses to provide valuation services. without such a license, an appraiser is not entitled american journal of business management, economics and banking volume 34 march 2025 p a g e | 111 www.americanjournal.org to carry out activities related to the provision of valuation services. in russia, for the purpose of self-regulation and regulation of valuation activities in the country, appraisers have the right to unite in associations, unions, and other supervisory organizations. therefore, in addition to state regulation of valuation activities, self-regulatory bodies and organizations engaged in similar valuation activities also carry out their activities, and similar bodies also carry out their activities. in all countries with a market economy, public organizations of appraisers exist and are actively working. for example, in the usa there are currently 32 organizations. the most famous of them are: foundation appraisal and the us appraisal institute, which has about 40,000 specialists. in the us, in particular, real estate appraisal is mainly carried out by small appraisal firms, which are based on a partnership-based legal form. such firms are usually based on the owner, at least two partners. usually 3-10 employees are employed. at the same time, very large firms, that is, branches of powerful organizations, also operate in this market, for example, currency branches of brokerage firms. large companies spend more money on the same work than small ones (2-3 times). usually they evaluate large projects and, if necessary, attract large investors to this. appraisal firms that are lower in their rating mainly evaluate objects through a wide network of branches throughout the usa, for example, we can take “marshal stevens” or “american appraisal”. if an appraisal is needed, they immediately resort to their services, for example, they need to evaluate 120 hotels in 45 days, and they have created very favorable channels for carrying out this work, that is, they are connected by a chain of appraisal activities throughout the usa. there is no consensus in the world today on valuation methods and techniques. in this regard, the experience of germany in coordinating and developing valuation activities is also of great interest. german appraisers believe that the reason for the maximum correspondence of their models to the market is the stability of values. the transparency of the real estate market lies in its correspondence to the needs of business and private activities of citizens. germany is primarily a socially oriented country. one of the broad opportunities of the german state is the development of property, land and other marketsregulationand the formulation of standards and the implementation of rules for assessment activities. assessment activities regulation the scope of the project is indirectly controlled by the federal government through the federal ministry of transport, construction and urban development, based on urban planning legislation. the above considerations are based on section 199 of the german urban planning code, which was adopted by the german federal government on may 19, 2012. the rules for determining the market value of property are agreed with the upper house of the german parliament and approved. the german federalthe resolution on property valuation by the government of the republic of kazakhstan entered into force on july 1, 2010. it is worth noting that the previous law, adopted by the german government on december 6, 1988, became invalid on august 18, 1997 [6]. the reasons for the adoption of the new resolution are as follows: due to the systemic correction of the real estate market due to the crisis of the market economy, including the improvement of valuation methods and information requirements; globalization of the real estate market, as desired by international investors, using market value indicators instead of exchange prices (verkehrswerte); american journal of business management, economics and banking volume 34 march 2025 p a g e | 112 www.americanjournal.org amendment of the legislation, namely, the transition to inheritance tax based on the market value of the components of the property. in germany, real estate valuation is mainly carried out on the basis of market values, driven by demand. based on this global practice, real estate transactions are systematized from the activities of the municipal expert commission, and correction indicators are developed on their basis and used by practical appraisers. namely: values are obtained by comparing and agreeing on the property; an inflation index is obtained for each market segment; an alternative urban planning coefficient is obtained; a real estate comparison factor is obtained; a capitalization rate is charged on real estate; the market situation is taken into account. in general, most of the changes in the new decision actually formalize the changes in valuation practices in recent years. at the same time, it requires a change in the market value of valuation in germany. in the process of valuing property (buildings, structures, land, etc.) in germany, its market value corresponds to its actual value and is explained by the following formula: lv = lvright+ (lvproperty/purchasedlvright) * 1 (1+p)n[6], where, lv is the market value of the property; lvright– the value of the property as a result of actual use, lvproperty/purchased– the value of the property when it is permitted or used at all; p– capitalization rate; nthe remaining life of the property. in addition, 3 methods have been proposed in german evaluation activities, which are as follows: 1. two-period method (intended for the income approach), namely: ev = (re – p * lv)mule) * v + lvtotal[6], where, ev is the value at the income approach boundary; re– net operating income during the operation of the valuation object; p– real estate capitalization rate; v– the present value factor of the annuity over the life of the property; lvtotal– free value of the property. 2. one-step method or simplified method – this method takes into account the fact that the property will achieve good results for 40-50 years: ev = re * v + lvmustache+ lvbuilding/qn[6], here, lvmustaq. – is part of the property as of the valuation date and is intended for independent use; n– the number of periods of income from construction. 3. multi-period method. this method is used when market returns differ significantly from expected returns: ev = rei * qi + rei * (vn vi) + lvni * qm + lvmustache [6] where, i – n is the exact period (year) in the range of years; vn– annuity price factor at n periods. american journal of business management, economics and banking volume 34 march 2025 p a g e | 113 www.americanjournal.org the first and second methods are simple methods of earning income in the market. however, the third method is based on accurate information about the income earned during the calculation period and the reversal (rollover) bet received at the end of it. in general, in world practice, it is impossible to manage the legal and economic essence of property without the value assessed through the property valuation services market (pvm), to implement property relations in the process of trading in the property market (pm) and in the current activities of owners, and to make reliable business decisions. however, the interaction of the property valuation services market and the real economy can be interpreted in a broader sense based on the rules of socioeconomic systemology as follows (figure 1). figure 1. structural model of how the mqbxb-mb pair and the mri-m pair function in a reciprocal manner through a common macroregulator (mr) [3]. in this case, the property valuation services market is represented as a complex system in which the property market pair and the national real economy (mri) and the owner (m) are integrated and regulated in coordination with the valuation activities. in this model, the to “mri-m” pair and the mqbxb-mb” pair are simultaneously influenced by external factors; llc– output indicators for the pair “mqbxb-mb”; nchk– output indicators by mri sectors and m indicators; qfo and nfo– internal factors that are generated by the macroregulator (mr) and affect the function of the “mqbxb-mb” pair and the “mri-m” pair, respectively; qso and nso– internal factors that are developed by the macroregulator (mr) and affect the structure of the “mqbxb-mb” pair and the “mri-m” pair, respectively. mr also functions as a mechanism for balancing coordination at the macro level, which consists in developing internal factors (qfo, nfo, qso, nso) based on the qchk and nchk, taking into account to. in addition, this model is considered a self-regulating complex dynamic system, in which the “mqbxb-mb” pair is ideally equivalent to the “mri-m” pair, that is, it reflects the state of the “mrim” pair and through it all the events taking place in the socio-economic and political life of the country. "mqbxb-mb"couple "mri-m" couple m qfo nfo ● ● qchk nchk to to qso nfo american journal of business management, economics and banking volume 34 march 2025 p a g e | 114 www.americanjournal.org based on all the ideas, opinions and conclusions presented in the regulation of valuation activities, taking into account the socio-economic systemology [7] and the views on modern property based on it, the regulation of valuation activities based on the property market and the market for property valuation services based on the model presented above (figure 2) can be seen within the framework of the following model. figure 2. structural model of ensuring the connection of mqbxb and mb through um (mr) [3]. in this model, to is the external factors that simultaneously affect the national property valuation services market and the property market; qchk is the output indicators (indicators) of the property valuation services market; nchk is the output indicators of the property market; um (mr) is the general regulator for the property market and the property valuation services market; qfo and nfo are internal factors that are developed by the ur and affect the functions of the property valuation services market and the property market, respectively; qso and nso are internal factors that are developed on a coordinated basis and affect the structures of the property valuation services market and the property market, respectively. in the coordination of valuation activities, these markets can be considered, based on the above model, as a conditionally virtual integral indicative market, i.e., the market for the formation of property values and prices (mqnb), formed in a conditionally virtual manner in which the value (v – value) and price (p – price) of civil rights objects are mutually equivalent. in particular, in the regulation of valuation activities, the model of the market for the formation of property values and prices can be formalized in mathematical form, that is, it can be in the form of the following mathematical equations: figure 3. table based on equation 1 [3]. figure 4. table based on equation 2 [3]. "mqbxb mb mr qfo nfo ● ● qchk nchk to to qso nfo american journal of business management, economics and banking volume 34 march 2025 p a g e | 115 www.americanjournal.org based on equation 1, a model for achieving equilibrium in the property valuation services market is described, where the mathematical solution (root) of the equation represents the equilibrium state of the market. in the model: b is the market for property valuation services; mm – balancing mechanism; f – influencing factors; x – sorting parameters. based on equation 2, the selected mathematical model determines the operation of the market balancing mechanism, that is, in which: ho – parameter in the initial ordering discrete; xk – the parameter in the next sorting discrete. in international experience, it is possible to study the regulation of assessment activities at the macroeconomic level based on all of the above models, based on modeling. conclusion/recommendations in conclusion, among the foreign models of state regulation of valuation activities, the model of regulation of valuation activities of the usa, the russian federation, and in particular, the german state experience is of great interest. german appraisers believe that the reason for the maximum correspondence of their models to the market is the stability of values. several formulas presented by german appraisers, including the correspondence of the market value to the real value in the process of assessing property (buildings, structures, land, etc.), and the issues of improving the regulation of valuation activities based on the three proposed methods in property valuation activities were considered. in our opinion, it is appropriate to apply the german experience model of regulation of valuation activities in the process of regulating valuation activities in uzbekistan. only in this way can the coordination, compatibility and stability of the processes occurring in the property market and the market of property valuation services be ensured at the macro level. references 1. verkhozina a.v. pravovoe regulirovanie otsenochnoy deyatelnosti. – m.: izdatelstvo: "rossiyskoe obshchestvo otsenshchikov", 2008. 394 p. 2. verkhozina a.v., fedotova m.a. comparative analysis of international and russian legislation in oblasti ocenochnoi deyatelnosti. m.: izdatelstvo: "interreklama", 2003. 368 p. 3. shokha'zami sh.sh. theoretical foundations of property, value and price. textbook. – t.: “economics-finance”, 2018. – 492 p. 4. alimov r.x., berkinov b.b., kravchenko a.n., khodiev b.yu. / edited by academician of the academy of sciences of uzbekistan gulyamov ss. real estate valuation. -tashkent: “science”, 2005. -231 p. 5. property valuation: textbook(for students studying in the field of "appraisal and real estate") k.z. khomitov, l.k. ko'paysinova; -t.: "tahririy nashriyot", 2023. – 337 p. 6. prepared by the author based on information from the website http://www.mejdunarodnie regulirovanie otsenka deyatelnosti.ru. 7. shokha'zami sh.sh. "tractat o sobstvennosti i eyo spravedlovoy stoimosti. t.: iqtisod-moliya, 2014. 304 st. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 18 www.americanjournal.org theoretical aspects of deposit operations of commercial banks rakhimov akmal matyakubovich, phd, professor of tashkent state university of economics e-mail: a.rahimov@tsue.uz +99890 134 71 71 a b s t r a c t k e y w o r d s the article examines the scientific views of strengthening the deposit base of commercial banks, analyzing the current state of the deposit base of commercial banks in our country and the influence of internal and external factors on the expansion of deposits, and also considers ways to strengthen and expand the resource base of banks. commercial banks, deposit, deposit base, types of deposits, demand deposit, time deposit, savings deposit, deposit certificate, bank resources, bank resource base. introduction one of the main and effective pillars of the country's economy is a financially robust and stable bank system. the level of socio-economic progress and future development of each country depends, first of all, on the functioning of the banksystem that has been built and regularly upgraded in that country. effective management of commercial banks' resources plays an important role in increasing the volume of export-oriented goods and services in the country, ensuring the liquidity of banks and increasing the stability of the national currency, strengthening public confidence in the banksystem. during the years of independence, a two-tiered perfect banksystemhas been developing and great changes can be seen in types of bank services, as well as inrelations with foreign banks cooperation has been established and improved. however, some issues related to banks' efficient use of resources and expansion of their deposit base remain topical. as a result of the reforms being implemented in our country, the banking system of our republic has achieved a number of successes. this situation can be recognized by the high attention given to the banking system in the decisions and decrees adopted by our government. in particular, in the decree of the president of the republic of uzbekistan "on the strategy ‘uzbekistan — 2030’", special emphasis is placed on "increasing the volume of bank deposits fourfold," where the main goal is to accelerate reforms in the banking system, expand the market volume of banking services, and develop competition in the sector[1]. the efficiency of commercial banks' lending operations can be ensured through the sustainability of their attracted funds. strengthening the involvement of commercial banks in the long-term crediting process will require their long-term resource base. in turn, the robustness of the resource base of the banks depends on the growth of deposits of legal entities and population deposits, ensuring their american journal of business management, economics and banking volume 37 june2025 p a g e | 19 www.americanjournal.org quantity and timeliness. because the share of attracted funds in the structure of commercial banks' resources is very high and their share is 70-80% [3]. in its turn, ensuring the role of commercial banks in the sustainable development of the country's economy, increasing its activity in investment financing is directly linked to the formation and expansion of their long-term resource base. the ultimate goal of cardinal reforms in the bankand financial system of the country is to strengthen the resource base of commercial banks of the republic, to increase the trust of business entities and population in the banksystem. based on this, the "strategy for further development of the republic of uzbekistan", approved by the decree of the president of the republic of uzbekistan dated february 7, 2017, nfp-4947, sets out the tasks of deepening the reform of the banksystem, increasing the deposit base, strengthening its financial stability and reliability [2] the relevance of the subject. analysis of topic material deposit is the amount of money in national or foreign currency, upon request or with the payer, on the terms agreed upon by the payer or their legal representatives, with the payment of interest or without such payment. with the rapid development of science and technology, the attention to commercial banks' deposit operations is rising. deposit operations of commercial banks have been studied by many foreign and domestic economists. in particular, foreign economist e.f.jukova and n.d.eirevillis say that in most banks the majority of borrowed funds are deposits. in the bankpractice, the term "deposit" is first and foremost entrusted to individuals by physical persons and legal entities in accordance with the terms of the bank deposit agreement and, secondly, to the bank entries, which confirm the monetary claims of bank depositors [5]. also, n.m.rozanova, another economist, says: "deposits or savings make up a large part of bank liabilities. deposits are understood to be money from the population and firms that are transferred to a bank account in certain circumstances and at a specified time".[6] the uzbek scientist u.azizov noted that the procedure for the creation of mandatory reserves in national currency, regardless of the currency of attracted funds by commercial banks, the rates for legal entities and individuals are unified, the reduction of charter capital requirements of legal entities in national currency, high rates of deposits in foreign currency that is to increase the attractiveness of deposits in national currency, reduce the level of dollarization of the economy and liquidity of the bank system.[7] it is possible to conclude that deposits and savings will contribute to the effective implementation of monetary policy. this, in turn, is an important part of the macroeconomic policy that affects the economic growth in the country. according to professor sh.z.abdullayeva, in world practice, the term "deposit" is used for payment of customs duties, taxes, and not only bank deposits, but also money or securities issued to the financialcredit or bank institution for storage and the benefits are also understood.[8] professor a.a.omonov noted in his researches that it is expedient to plan strategic planning at least one to ten years in managing bank resources. it is emphasized that the focus is on balancing resources and allocating resources over time, forming a financially stable client base, and attracting resources to depositors and customers alike [9]. it should be noted that coordination of terms of attraction and allocation of resources, diversification of attracting resources to depositors and clients is the main tool for efficient management of resources of commercial banks. in his researches, professor f.i.mirzayev stopped on the conceptual basis of formation of interbank competition. specifically, economic relations american journal of business management, economics and banking volume 37 june2025 p a g e | 20 www.americanjournal.org as a basis for inter-bank competition in the bankservices market, in the process of attracting resources, placing funds and implementing all other bank services [10]. thus, commercial banks fully study theoretical and practical aspects of deposit operations and analyze and draw conclusions from them are an important factor affecting the stability of banks. b.b.parpiev has made a number of statements on sustainable attraction of free funds of population and managing subjects to bank deposits. in particular, it is pointed out that the commercial banks should use their marketing tools to effectively carry out their tasks in order to intensify the steady attraction of free funds of population and business entities to bank deposits in the context of the global financial and economic downturn [11]. consequently, attracting and maintaining a stable and optimal level of savings and free cash flows will help to prevent instability and crisis in the economy. ph.d. s.kh.igamberdiyev believes that having a resource base in the form of deposits of individuals ensures a stable part of the bank balance sheet [12]. this, in turn, has an impact on the effective management of the investment bank. also, the introduction of new liquidity regulation requirements in the banks 'activity creates conditions for the development of the banks' stock market activity, in particular, the placement of demand deposits in the stock market's liquidity securities. deposits are listed in the bank practice of the republic in the following way[12]: required deposits; time deposits; savings deposits. required deposits have the following characteristics: at any time of this type of deposit may withdraw or withdraw funds in any amount; unlimited time deposit; a small amount of interest is paid and so on. deposits in commercial banks have the largest amount of required deposits. this is usually the cheapest source of bank resources. time deposits are deposits attracted by banks for a certain period of time. these types of deposits must be settled in the maturity date and will not be used for current payments.time deposits have the following characteristics: – the rate is fixed and settled (indicated in the deposit policy); – not used for current accounts; – the customer must not be prematurely withdrawn, otherwise the terms of the agreement on the interest payment can be canceled and interest can be paid on the deposit amount upon demand; – funds are slowly shifting to long-term mortgages and so on. savings deposits serve to accumulate savings of the population. fund savings include deposits that are deposited with the purpose of accumulation or storage of funds. their special feature is the encouragement of savings and the high level of profitability, which accumulates for a certain period of time. in our opinion, commercial banks are operations involving the transfer and savingthe funds to the bank for certain purposes, based on the agreement between the bank and the client. analysis and findings the expansion of the deposit base of commercial banks requires the development of bank deposit operations. first of all, it is necessary to consider the factors influencing the development of deposit american journal of business management, economics and banking volume 37 june2025 p a g e | 21 www.americanjournal.org operations of commercial banks. factors influencing the development of deposit operations of commercial banks. picture 1. factors influencing the development of deposit operations of commercial banks. factors influencing the development of deposit operations of commercial banks. the degree to which the bank uses new technologies has an impact on the development of bank deposit operations a clear indication of the use and development of new techniques and technologies in all areas of the country. the correctness of the bank management system and the bank's organizational structure, the high level of professionalism of managers and employees of the bank as well as the good attitude of the bank staff to their work lead to the improvement of the bank situation and the reputation of the bank. as a result, clients' confidence in commercial banks increases and they try to keep their free cash money in banks. this directly entails expansion of the deposit base of commercial banks. an increase in deposit funds of commercial banks of our country can be explained by the growing trust of the population in the bank system and the introduction of new attractive deposit types. the attractiveness of fixed assets through the well-developed deposit policy by commercial banks will help to increase the resource base of banks, which, in turn, will prevent the problem of lack of resources in banks' lending practice. it is noteworthy that over the past period, the modern banksystem has been introduced in the country's banksystem. in particular, major changes took place in the structure of commercial banks. in particular, organizational structure internal factors: the level of the bank's use of new information technologies external factors: organizational structure of the bank bank management system qualifications of bank managers and employees initiative of bank employees financial position of the bank political processes people's confidence in the bank central bank requirements political and economic situations income of people inflation and interest rate american journal of business management, economics and banking volume 37 june2025 p a g e | 22 www.americanjournal.org many outlets of large commercial banks, such as mini-banks and fixed-run cash dispensers, operate outside the branch offices. when analyzing the deposit operations of commercial banks, the importance of commercial banks in this process is of particular importance. it is noteworthy that the people's bank, which has the largest number of branches in the country, has dropped to the next position. developing a well-thought-out strategy for attracting deposits leads to the increase in the bank's resource base. due to the high mobility of funds on demand deposits in commercial banks, the balance of these accounts is unstable, sometimes variable. the likelihood of the account holder at any time to require the presence of high liquid assets in the bank's operations.this is due to a reduction in the share of higher income-generating assets, which has less liquidity. as such, the deposit account holder will either pay a low interest or will not pay at all. however, despite the high mobility of funds on demand deposits, banks should be able to identify their minimum, permanent residue and use them as a sustainable credit resource.time deposits provide a stable resource base of the bank to other types of deposits. therefore, commercial banks should strive to increase the share of time deposits. first of all, the commercial banks are tasked with developing a thoroughly-thought-out policy of deposit policy, and by attracting stable financial resources, as a result of developing a special strategy for attracting deposits by the bank. conclusions and suggestions in conclusion, it is important to note that commercial banks have enough involvement of free money resources in the economy and the effective allocation of these funds is one of their key tasks today.the main reason for this is the increased demand for financial resources among commercial banks, which is the result of the deepening of market relations and further liberalization of the economy. as a result, the growing demand for long and short term funds in banks has become one of the important issues in formulating and managing these funds. this situation positively affects the growth of free competition among banks in the "distribution" of available temporarily available money resources across the country and attraction of additional resources from the financial market. based on the above research and analysis, the following recommendations have been developed: systematic introduction of new attractive types of deposits and deposits, taking into account the needs and wishes of the population and business entities by commercial banks; development of requirements to the deposit policy of the commercial banks by the central bank; development of short and long-term bank strategies to attract deposits to commercial banks; development of practice of deposit certification by banks; strengthening the bank's resource base by expanding the practice of attracting interbank deposits. we believe that introduction of the above proposals will help commercial banks of our country to develop deposit operations and, consequently, to expand the deposit base of banks. references 1. decree no. pf-158 of the president of the republic of uzbekistan "on the strategy 'uzbekistan — 2030'" dated september 11, 2023 // lex.uz. 2. decree of the president of the republic of uzbekistan dated february 7, 2017 "on the strategy for the further development of the republic of uzbekistan" no. up-4947 // lex.uz. american journal of business management, economics and banking volume 37 june2025 p a g e | 23 www.americanjournal.org 3.banking. express course: textbook / count. authors; by ed. o.i. lavrushina. 3rd ed., pererab. and add. m .: knorus, 2009.-352с. 4. instruction of the central bank of the republic of uzbekistan № 2711 "on the order of deposit operations in banks of the republic of uzbekistan", august 26, 2015. www.cbu.uz 5. zhukova e.f., eriashvili n.d. banking: a textbook. “finance and credit”. 4th ed., prerab. and add. m .: unity-dana, 2018. 169 p. 6. rozanov n.m. money and banks: a textbook. m .: publishing house yurayt, 2018. 241 p. 7. azizov u.u. the impact of monetary policy on stimulating economic growth. international journal of economics, commerce and management. united kingdom http://ijecm.co.uk/. vol. vii, issue 4, april 2019. issn 2348 0386. (scopus, impact factor #5,8). 8. abdullayeva sh.z. banking. textbook. -t .: tmi, economics -finance, 2017, p. 9. omonov а.а. effective management of commercial banks' resources. dissertation presentations for the doctor of economics degree t .: bfa, 2008. p. 10. mirzayev f.i. the conceptual basis of the formation of interbank competition in uzbekistan. dissertation reviewer's dissertation for the degree of doctor of economics, t .: bfa, 2009. 11 p. 11. parpiev b.b. forming a marketing strategy of attracting free funds of population and business entities to bank deposits. dissertation presentations for the degree of candidate of economical sciences t .: tdiu, 2010. 9 p. 12. igamberdiyev s.kh. improvement of management of investment banking. phd thesis dissertation in economics, t .: tdiu, 2018. 18 b. 13. azizov u.o, qoraliev t.m. and so on. banking. textbook. t .: science and technology, 2016. 132b. http://ijecm.co.uk/ american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 82 www.americanjournal.org a review of green accounting in emerging economies shodiev erkin temirovich, phd, makhkamboev komil abdulkhakovich, phd, faculty of economics, mamun university, uzbekistan. ma'mun-university ntm, department of "accounting and business management", khiva, uzbekistan a b s t r a c t k e y w o r d s this study conducts a comprehensive meta-synthesis of review-based research on green accounting, spanning from 2020 to 2024. green accounting, also known as environmental accounting, has evolved as a critical tool for integrating sustainability into corporate financial practices. the analysis was performed using a csv file, microsoft excel 2021, and ris. the findings highlight a significant increase in review-based studies since 2020, coinciding with the growing global awareness and importance of sustainability. this study contributes to the field by consolidating fragmented research on green accounting, offering a framework for future academic exploration. practically, it informs policymakers and business leaders on the importance of unified reporting standards across regions; integrating environmental considerations into financial decision-making; promoting transparency, accountability, and sustainability accounting; and disclosure across industries and regions. green accounting, sustainable development, business, management and accounting, environmental management accounting, environmental accounting, climate change, accounting, carbon accounting, corporate social responsibility, sustainability accounting, sustainability reporting introduction in recent decades, the global pursuit of sustainable development has intensified the focus on environmental accountability and corporate sustainability.(wiredu et al., 2023) within this context, green accounting—also known as environmental accounting—has emerged as a critical discipline aimed at integrating environmental costs into financial and economic decision-making processes.(özyürek, 2024) by recognizing and quantifying the environmental impacts of business activities, green accounting provides a framework for promoting transparency, sustainable resource management, and environmentally responsible practices. as the field has evolved, a growing body of academic literature has explored various dimensions of green accounting, including its methodologies, applications, and role in shaping environmental policy and corporate strategy. however, to understand the development, current trends, and future directions of this field, a systematic and data-driven approach is necessary. bibliometric analysis serves as a american journal of business management, economics and banking volume 35 april 2025 p a g e | 83 www.americanjournal.org valuable tool in this regard, enabling researchers to map the intellectual structure of green accounting, identify influential works and authors, analyze publication trends, and uncover collaborative networks. this study presents a comprehensive bibliometric analysis of green accounting literature, aiming to shed light on its research trajectory, influential contributors, dominant themes, and emerging areas of interest. by analyzing scholarly publications over time, this research seeks to offer insights into the evolution of green accounting and its significance in the broader discourse of environmental sustainability. 2. materials and methods in this review, we searched for publications on regional knowledge from the research done. the research was carried out on the most widely used bibliographic online database, scopus, from 2020 to 2024 using green accounting, sustainable development, business, management and accounting, environmental management accounting, environmental accounting, climate change, accounting, carbon accounting, corporate social responsibility, sustainability accounting, sustainability reporting as the keywords. the analysis was carried out in april 2025. a total of 190 publications were sorted out for further analysis of green tourism issues. the analysis was performed using a csv file, microsoft excel 2021, and ris. 2.1 article review and study eligibility criteria for the search process, relevant information, such as the keywords “green accounting, sustainable development, business, management and accounting, environmental management accounting, environmental accounting, climate change, accounting, carbon accounting, corporate social responsibility, sustainability accounting, sustainability reporting,” and all articles in english, were added to a spreadsheet. article = (“green accounting”), document type = “article”, timespan = “20202024”, subject area = business, management and accounting, economics, econometrics and finance, environmental science, social sciences, energy, decision sciences and deadline = december 2024. figure 1 shows the flow of the selected methodology for the research. 2.2 bibliometric analysis the term "bibliometric analysis" refers to a research technique widely used in various fields. this method is relatively new in the scientific community, and it will be used in this paper to analyze intentions for green accounting.(dwianika et al., 2024), (karthikeyan et al., 2020) scientometrics is the study of science and scientific research. bibliometric analysis is an important component of scientometrics, and it involves analyzing bibliometric data such as published references. this data is essential for conducting bibliometric research. data obtained in csv format were uploaded to excel and subsequently, a bibliometric analysis was conducted. before starting the analyses, the data was thoroughly checked for errors. the reviewed articles were analyzed, and the most relevant ones were identified, as well as the corresponding authors, that is, those who created the most articles. the articles from the search were assessed and classified according to diverse aspects: number of papers per year, document type, top list of papers, top list of journals. american journal of business management, economics and banking volume 35 april 2025 p a g e | 84 www.americanjournal.org figure 1. methodology flowchart for the research 3. results 3.1 trend of publications on green accounting in many green destinations, the relationship between green accounting and sustainable development has a wide range of scientific implications. a total of 170 papers were published between 2020 and 2024 on green accounting (fig.2). id en ti fi ca ti o n s cr ee n in g e li g ib il it y in cl u d ed records identified in april, 2025 scopus database searches (n=190) records screened from scopus searches (n=190) documents abstracts assessed for eligibility (n=170) documents included in bibliometric synthesis (n=170) records removed before review: other articles removed from 2020-2024 (n=25) records excluded: entries not related to the subject area (social sciences, business management and accounting, environmental science, energy, computer science, economics, econometrics and finance, earth and planetary sciences, engineering, agricultural and biological sciences, medicine) (n=156) book and book chapter (n=14) american journal of business management, economics and banking volume 35 april 2025 p a g e | 85 www.americanjournal.org figure 2. annual production of articles on green accounting moreover, our study shows that the largest number 157 (81,8 %) of 170 papers were research articles, followed by 2 (1.0 %) articles in book chapters, 13 (6,3%) in books, in conference papers 9 (4,7%) and of other document types as a review 10 (5.5%) (fig. 3). figure 3. publication type on green accounting 3.2 journals on green accounting there was a distribution of the total output across 170 journals published in 39 countries based on the communication patterns of the scholars. american journal of business management, economics and banking volume 35 april 2025 p a g e | 86 www.americanjournal.org table 1 lists the names of the 170 journals that published a minimum 5 and higher number of papers during the abovementioned period. among the 170 journals, cogent business and management had the highest number of publications with 25, followed by international journal of energy economics and policy with 7 papers and sustainability switzerland with 2 papers in this field. table 1. list of the journals on green accounting of publication scopus source title number cogent business and management 25 international journal of energy economics and policy 11 sustainability switzerland 7 cogent social sciences 6 journal of environmental management 6 journal of environmental management 5 environmental economics 4 meditari accountancy research 4 environmental science and pollution research 3 journal of sustainability science and management 3 3.3 authors and their affiliated country our research found that 160 authors from 39 countries conducted studies on green tourism over the period 2020-2024. figure 4 shows 3 authors who have published 2 papers each. among them, gupta, s.. reigned with 5 publications, followed by khan, s. with 5, rahman, m.m. with 4, fahlevi, m with 3 and others each with 2 research papers. figure 4. list of top authors published on green accounting 4. discussion the objectives of this study were to analyze the existing knowledge on the green accounting scale and identify, through a systematic review, the scientific articles and research areas that have had the greatest impact on the topic. this scientometric analysis showed that articles published over 5 years have the https://www.scopus.com/sourceid/21100855822?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100281302?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100281302?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100240100?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100855822?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100281302?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100240100?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100872366?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/23371?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/23371?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21101071896?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/21100446969?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/23918?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/sourceid/17700156532?origin=resultsanalyzer&zone=sourcetitle https://www.scopus.com/authid/detail.uri?authorid=57213338000&origin=resultsanalyzer&zone=authorname https://www.scopus.com/authid/detail.uri?authorid=57213338000&origin=resultsanalyzer&zone=authorname https://www.scopus.com/authid/detail.uri?authorid=58086958600&origin=resultsanalyzer&zone=authorname https://www.scopus.com/authid/detail.uri?authorid=57220839098&origin=resultsanalyzer&zone=authorname https://www.scopus.com/authid/detail.uri?authorid=57211888309&origin=resultsanalyzer&zone=authorname https://www.scopus.com/authid/detail.uri?authorid=57211888309&origin=resultsanalyzer&zone=authorname american journal of business management, economics and banking volume 35 april 2025 p a g e | 87 www.americanjournal.org highest results on green accounting studies in the last 5 years. annual production of articles on green accounting during the period 2020-2024. this study analyses the scientific production that deals with green accounting with a particular focus on the importance of green accounting in the world through bibliometric methods. several studies have used bibliometric models in green accounting ecosystems to understand key concepts and theories related to zero emissions. for example, (özyürek, 2024), (gonzalez and peña-vinces, 2023) analyzed a bibliometric analysis of green accounting, environmental accounting and green business publications in a global perspective. in general terms, the work aims to maintain with green accounting with a particular focus on the importance of climate change. from our analysis of the green accounting publications based on the green accounting issue. the publications published began from 2020 to 2024. this is indicated in the articles such as green accounting and related ecosystem problems, green development issues about green efficiency, wastewater reuse, mining and treatment, climate change in a circular economy scheme related to sustainability, and life cycle assessment. from the above, it is known that there are connections between green accounting and many areas. among them, the green accounting issue with sustainable development is considered very important. our analysis shows that over 5 years, only 170 publications were sorted out about green accounting based on the issue. conclusion green accounting is unquestionably one of the most essential tourism concepts, as it will benefit numerous stakeholders, such as society, the environment, and the community. there is an increasing global interest in green accounting. using bibliometric analysis, this study highlights the trends in green accounting. to conduct a bibliometric analysis, 170 scopus documents about green accounting were utilised in this study. the data extraction procedure reveals that articles on green accounting intentions were published between 2020 and 2024. there are several frequently used keywords among authors. "green accounting," and "sustainability" are the most frequently used terms in the field of green accounting research. the terms "green accounting" and "environmental accounting" are synonymous despite having significantly different meanings. both phrases, however, refer to environmental preservation. in addition, words such as “green accounting” and “sustainable development” are quite popular since green accounting is identical with certain tourist destinations that keep their operations in conservation of the environment. there are several researchers who are very productive in publishing articles on green accounting. this research has benefited both academic and professional stakeholders. this study provides a comprehensive overview of green accounting, focusing on its intent. by performing a bibliometric analysis on published papers, the researcher has uncovered significant insights regarding the theoretical implications of green accounting. in the sphere of green accounting, these valuable insights include trending topics, keywords, authors, affiliations, and countries, among others. it unquestionably provides a starting point for future green accounting research by another researcher. this study will contribute to the growing body of research on green accounting as it follows the recent trend in the field. consequently, this study will help to close a gap in the existing body of research american journal of business management, economics and banking volume 35 april 2025 p a g e | 88 www.americanjournal.org references 1. özyürek h. a bibliometric analysis of green accounting, environmental accounting and green business publications in a global perspective(conference paper) icsbt international conference on smart business technologies.2024 2. gonzalez c.c.; peña-vinces j. a framework for a green accounting system-exploratory study in a developing country context, colombia. environment, development and sustainability.2023 3. wiredu i.; osei agyemang a.; agbadzidah s.y. does green accounting influences ecological sustainability? evidence from a developing economy. cogent business and management.2023 4. dwianika a.; purwanto e.; suyoto y.t.; pitaloka e. bibliometrics analysis of green accounting research. international journal of energy economics and policy.2024 5. karthikeyan c.; singh s.; prema r.k.; swarnalatha v.; lalitha p. a philological analysis on green accounting conceptual permutations on evolutionary models. international journal of scientific and technology research.2020 american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 36 www.americanjournal.org small business lending is the key to the country's development ortikov ulugbek akrombek ugli senior teacher of the department budget accounting and treasury tashkent state the university of economics e-mail:ortiqovulughbek@gmail.com a b s t r a c t k e y w o r d s lending to small businesses and private entrepreneurship plays an important role in gdp growth and in the development of the country's economy. crediting small business and private business plays main role in increasing gdp and developing economy of the country. small business, private entrepreneurship, credit, micro-credit, domestic ox product, cash, credit lines. introduction in both developed and developing countries, the development of the economy is inextricably linked to credit, which in various forms penetrates all spheres of life. this is due to the expansion of the range of operations of banks, including in the field of lending. performing banking operations with a broad clientele is an important feature of modern banking activities in all countries of the world with a developed credit system. the existence of small business and private entrepreneurship in the country means the emergence of a middle class that contributes to the normalization of the economic and political situation in society. as the experience of countries that achieved a dominant position in the global economy shows, they raised the standard of living of the population by developing small businesses and private entrepreneurship. for example, the share of small and medium-sized businesses in the gross domestic product of the eu member states is 67%, in germany-65%, in the usa-52%. in japan, 80% of the employed population, in the european union 70% work insmall businesses and private entrepreneurship. as a rule, the source of bank lending is attracted funds. in this regard, it is important to note that when lending, the bank risks not so much its own funds, which is also possible, as the funds of its depositors. this means that it is necessary to establish means to protect the rights and interests of depositors, and provide a mechanism for their implementation. moreover, this should be done not at the level of private legal regulation, but by establishing public legal rules. in order to further improve the business climate and deepen market reforms, to create the most favorable conditions for accelerating the development of small businesses by expanding opportunities for them. american journal of business management, economics and banking volume 42 november2025 p a g e | 37 www.americanjournal.org the guarantee fund for the development of small business in the form of a joint-stock company with branches in the regions of the republic was established in accordance with the decree of the president of the republic of uzbekistan "on the creation of the guarantee fund for the development of small businesses " dated 10.02.2017 pp-2768 [2]. for the development of small businesses, credit resources are attracted from foreign investors and reputable world banks, including the european bank for reconstruction and development, the german development bank, the asian development bank, the international finance corporation and other international financial organizations. in order to provide assistance and advice to entrepreneurs and businessmen, a small business support center was opened in uzbekistan with the assistance of the german technical assistance society. the us entrepreneurship foundation and the uk investment fund, which operate in central asia, provide uzbek entrepreneurs with the necessary information. table 1. loans to small businesses and private entrepreneurs[1] (million soums) an important factor of differentiation in the conditions of the republic was the history of business creation, the degree of its dependence on the public sector. as the study of foreign experience shows, an indispensable condition for success in the development of small businesses is comprehensive and stable state support. it is carried out in various forms: stimulating the production of the most priority types of products, providing tax incentives, subsidizing preferential bank lending, creating information and advisory and scientific and technical centers, developing the insurance system, organizing logistics, financial support, and a financing mechanism. currently, there are several problems in the segment of lending to small businesses by commercial banks. the key issue is the availability of credit products for small businesses, which is determined commercial banks 31.10.2023 31.10.2024 31.10.2025 bank "asaka" 741 683.6 1 111 608.0 1 228 832.8 national bank of foreign economic activity of the republic of uzbekistan 1 040 400.0 1 040 400.0 1 200 0000.0 jscb "agrobank" 507 823.8 619 875.0 789 680.9 gc halyk bank 497 647.5 581 346.0 633 809.6 jscib "ipoteka-bank" 396 976.2 573 373.0 698 173.3 jscbuzpromstroybankjscb 420 618.0 567 764.0 564 494.2 акб “khamkorbankjscb 307 082.3 531 920.0 783 911.5 jscb "mikrokreditbankjscb 449 985.7 521 148.0 621 jscb "kishlok 793.8 kishlok kurilish bank jscb 319 534.1 438 246.0 559 907.9 alokabank jscalokabankjscb 335 163.2 417 217.0 428 119.4 american journal of business management, economics and banking volume 42 november2025 p a g e | 38 www.americanjournal.org by a number of aspects: the need to provide collateral and guarantees, high interest rates, complexity of paperwork, lack of trust in the bank, as well as late repayment of loans received. the study of this problem is that the timely repayment of loans issued to them in the future continued at a preferential interest rate and conditions for the further development of the activities of small businesses. the state creates all favorable conditions for the development of small businesses and private entrepreneurship through lending to this sector from banks, but still there are some problems of lending in the banking system of uzbekistan, which are due to the following reasons: ➢ first, the resource base of commercial banks in the republic is insufficient. ➢ во-second, interest rates are rising, which forces the best borrowers out of the market. ➢ third, the relatively low level of the monetization coefficient (according to the recommendation of imf experts, the minimum level of the coefficient should be 30-33%) [4]; ➢ fourth, there are shortcomings in the process of loan processing and accounting in a number of branches of commercial banks in the republic. ➢ fifth, the problem of inadequate use of types and methods of credit. ➢ the main reasons for lending to small businesses are non-transparency and the risks of nonrepayment of loans. ➢ underdeveloped banking technologies that do not allow you to reduce the cost of handling a single client. ➢ lack of reliable collateral, as most small businesses do not own liquid property. ➢ distrust of small businesses experienced by banks. ➢ commercial banks do not have the resource capacity toopen long-term credit lines for small businesses. ➢ illiteracy of borrowers. having studied the problems of lending to small businesses in uzbekistan, we came to the following conclusions: 1. the resource base of commercial banks in the republic is insufficient 2. interest rates are rising, which forces the best borrowers to leave the market. 3. commercial banks are associated with the risk of non-repayment of loans. 4. lack of sufficient collateral when obtaining bank loans from representatives of small businesses. 5. assessment methods used by commercial banks of the republic cannot give a complete description of the borrower, as they do not take into account factors that are not related to financial coefficients. from here we can assume that commercial banks use an incomplete system for analyzing the creditworthiness of borrowers, which most likely distorts the real picture. 6. the share of foreign investments on loans issued in foreign currency is small [4];. to solve the above problems, we apply economic proposals in our banking practice and in the future will increase the efficiency of lending to small businesses and strengthen the stability of internal and external sources of lending. references: 1. official website of the central bank of the republic of uzbekistan//monetary policy report//electronic resource. 2025 year. http://cbu.uz/uzc/monetarnaya-politika/doklad-o-monetarnoy-politike/ 20.04.2025 г. http://cbu.uz/uzc/monetarnaya-politika/doklad-o-monetarnoy-politike/ american journal of business management, economics and banking volume 42 november2025 p a g e | 39 www.americanjournal.org 2. decree of the president of the republic of uzbekistan pp-2768 "on the establishment of the guarantee fund for the development of small businesses" dated 10.02.2017. 3. official website of the international monetary fund// final report of the international monetary fund / / electronic resource. 2018. http://www.imf.org/external/pubs/ft/ar/2017/eng/index.htm 20.04.2018 4. tozhiev r. r., temirov a. a. "ways to improve the system of crediting small business entities of the republic of uzbekistan" / / economic sciences. no. 6-1 (18). 2023, 5 p. http://www.imf.org/external/pubs/ft/ar/2017/eng/index.htm american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 18 www.americanjournal.org theoretical foundations of direct taxation of commercial banks in uzbekistan l. ergasheva 1 1 tashkent university of applied sciences, 1 gavkhar str., tashkent 100149, uzbekistan ( ergashevalobar577@gmail.com) a b s t r a c t k e y w o r d s in the world, commercial banks are the main link in today's economic growth. banks receive the main profit in the form of a deposit and without a deposit. in addition, commercial banks own high-value real estate and land. the listed income is subject to taxation by commercial banks.this abstract is devoted to taxes paid by commercial banks in uzbekistan and their role in the structure of state budget revenues. it is also written about the tax burden of commercial banks in uzbekistan and their share in the the shadow economy. direct taxes, object of taxation, tax base, tax burden, the shadow economy, state budget, interest income. introduction the types of taxes paid by banks in subsequent years and their impact on business efficiency remain high.this is due to an income tax of 20% of the income earned by commercial banks, plus banks pay direct taxes such as taxes on real estate and land.the exemption of commercial banks from mandatory payments contributes to the bank's sustainable activities. on the contrary, the efficiency of banks is affected by the fact that the bank's capital pays taxes and mandatory payments with high duties, as well as the burden of penalties and tax burden.also, the subordination of banks to their obligations negatively affects their economic stability, and the bank's capital is constantly under threat.”as a result of the decrease in the interest margin, that is, due to the difference between the average values of attracting and allocating resources, banks had to abandon this practice." according to the classical theory, banks generate income through active transactions and brokerage fees.to date, non-credit activities carried out by banks occupy the second place in terms of importance. the basis is commission income.the income structure of commercial banks in uzbekistan is classified as follows: american journal of business management, economics and banking volume 40 september2025 p a g e | 19 www.americanjournal.org types of banking activities types of earnings 1 2 credit transaction • interest on the loan • interest income on promissory notes • income from credit transactions for the previous year discount operation • discount income on factoring and forfeiting operations securities transaction • income from investments in long-term liabilities * income from the resale of securities * other income from securities transactions warranty activities • commissions received on issued guarantees deposit operations and operations on behalf of the client cash operation; •collection operation; * commission charged on settlement transactions currency transaction • income from foreign currency transactions • income from forward, futures, swap, and option transactions another area of banking activity • income from renting out real estate * income from leasing operations * income from information services * fines, penalties, etc.. discussion and results the income of banks in uzbekistan is mainly divided into 2 categories: 1.interest income 2.interest-free income accordingly, the income structure is based on the above table. the factors affecting the income of banks are mainly the refinancing rate of the central bank, the level of inflation in the country, the level of demand and supply of banking services to customers.based on the data presented in this content, we will analyze the income of bank a according to the following table: american journal of business management, economics and banking volume 40 september2025 p a g e | 20 www.americanjournal.org table 1 the structure and dynamics of the income of the bank "a" № the income received last year in the current year the change of the current year compared to the previous year the balance is million soums fraction % the balance is million soums fraction % million soums fraction % interest income on loans 5372 45% 5123 42,5 -249 -4,6 1 income from accounts in the central bank and other banks 0 0,0 0 0,0 0 0,0 2 income from government bonds 5,5 0,05 5,5 0,05 0 0,0 3 income from investments in securities 20,7 0,2 26,5 0,2 5,8 28,0 4 acquired accounts receivable-income from a factoring operation 3,6 0,03 1,8 0,01 -1,8 -50,0 5 rental income 293,1 2,5 390,4 3,2 97,3 33,2 total interest income: 5694,9 47,7 5547,2 46,1 -147,7 -2,6 interest-free income 0 0,0 7 income from mediation and other services 5680 47,6 5790 48,1 110 1,9 8 profit from foreign exchange transactions 543 4,5 680 5,6 137 25,2 9 income from other operations 21 0,2 23 0,2 2 9,5 total interest-free income 6244 52,3 6493 53,9 249 3,9 bank a received 11938.9 million soums of income last year. of these, 6244.0 million soums, that is, 52.3% were interest-free income, and 5694.9 million soums, that is, 47.7% were interest income. the total income received this year amounted to 12040.2 million soums. this year, the bank's revenue increased by 101.3 million soums, that is, by 0.8 percent. while the bulk of interest income came from interest income earned on loans issued, interest-free income came mainly from brokerage and other services. sum.s., a decrease in interest income this year by 147.7 million. sum (2.6%), income from loans for 249 million. the sum (4.6%) indicates the presence of serious shortcomings in the credit policy of this bank. in addition, the bank's interest rate policy may affect this situation. the lack of income in accounts with central and other banks means that the deposit funds were not deposited by this bank in order to generate income to other banks. the income they receive from their investments in government bonds and other securities is a very small proportion. this situation is explained by the fact that investments in securities in the bank's assets amount to a very small amount. in the subsequent period, there has been an increase in the amount of the bank's leasing operations and income from them. the bank's revenues from these operations increased by 33.2% this year compared to the previous year. the bulk of the interest-free american journal of business management, economics and banking volume 40 september2025 p a g e | 21 www.americanjournal.org income came from services provided by mi, while the bulk of u was obtained through mediation in settlements with customers. it is also necessary to focus on expenses in comparison with the income received. costs are understood as the use (expenditure) of funds for production (banking) and non-production (non-banking) activities. expenses in relation to income are divided into the following groups: 1. operating expenses: 1.1. interest expenses. 1.2. commission expenses. 1.3. expenses related to financial market transactions. 1.4. other operating expenses. 2. expenses for ensuring the functioning of the bank. 3. other expenses. direct taxes paid by commercial banks in uzbekistan are: * income tax; * land tax; * property tax. based on the above sources, it can be said that the bulk of direct taxes paid by commercial banks in uzbekistan is the reason for the increase in the taxable revenue of the state budget. this type of tax payment is calculated as: the tax base will consist of taxable profit calculated from total income by deducting expenses provided for in articles 142-145 of the tax code of the republic of uzbekistan, taking into account the benefits established by tax legislation and amounts reduced in accordance with article 159 of the tax code. when calculating taxable profit, the following expenses can be deducted from total income: material costs; labor costs; depreciation charges; other expenses. digital taxation technologies are being introduced in uzbekistan. but it cannot be said that it is completely digitized. in addition, the high tax burden and high inflation negatively affect the capital growth of commercial banks.when calculating income tax, it is necessary to determine the tax base in accordance with the established procedure, the tax base can be found by the formula: ssb=stf+tpz+tmm+ihf+chx-df-i here, ssb-tax base stf-profit before taxes; tpz-at prices below the cost of goods (works, services), losses from sales and free distribution; tnk-taxpayer's acquired property, property rights, works and services free of charge from other persons; ihf-for the use of state-owned real estate is calculated based on the minimum rental rates, the amount of rent established by the lease american journal of business management, economics and banking volume 40 september2025 p a g e | 22 www.americanjournal.org agreement is an amount exceeding the amount; hh-expenses that are not deductible ( expenses included in the tax base); df-dividends and interest received (to be received); i-benefits and reduced amounts. upon detection of the above-mentioned tax base, it calculates and pays income tax to the tax inspectorate at the location. as a rule, the burden of taxes and other mandatory payments paid by commercial banks is high. the burden of the tax burden leads to the emergence of a lean economy. today, 40% of uzbekistan's economy is made up of the shadow economy. conclusion the objective need for internal control over income tax, property tax, and land tax is due to the need to verify the authenticity of commercial banks.in particular, the recognition of income and expenses, as well as the procedure for calculating taxes levied by commercial banks, and the application of the internal tax control system give high results.this, in turn, helps commercial banks identify possible errors.the tax base is the base for an internal facility the tax base is the main object of internal control over income tax in commercial banks. the organization of internal control over income tax in commercial banks should begin with the development of a plan and program for conducting internal control procedures for income tax. when organizing information support for internal control over income tax in commercial banks, it is advisable to use in the work an assessment of the sufficiency of the proposed information base for making managerial decisions, heads of commercial banks need information on the impact of income tax on financial results, therefore it is advisable to carry out not only subsequent internal control over income tax, but also preliminary and ongoing control. commercial bank income tax, property tax and land tax-the partner program should be applied by banks. it adopts an internal expenditure and revenue program. based on the adopted program, all tax calculations and their analytical indicators are subject to control by state tax inspections. references 1. бухадурова м.н. элементы депозитной политики коммерческого банка [текст]/ м.н. бухадурова// вестник национального университета таджикистана. душанбе, 2011. №10 (74). с. 47-56 (1,0 п.л.); 2. бухадурова м.н. организационные аспекты формирования и реализации депозитной политики коммерческого банка [текст]/ м.н. бухадурова/лзестпик «таджикистан и современный мир». душанбе, 2011. №4 (29). с. 23-34. (0,7 п.л.); статьи в других научных журналах и изданиях: 3. бухадурова м.н. вклады населения как важный источ1шк формирования ресурсного потенциала коммерческого банка [текст]/ м.н. бухадурова // современные вопросы науки xxi век: сб. науч. тр. по материалам vii между'нар. науч.-практ. конф. (29 марта 2011 г.) тамбов, 2011. выпуск 7, часть 5. с. 20-21 (0,2 п.л.); american journal of business management, economics and banking volume 40 september2025 p a g e | 23 www.americanjournal.org 23 4. бухадурова м.н. оптимальная депозитная политика коммерческого банка и факторы ее определяющие [текст] / м.н. бухадурова // известия академии наук республики таджикистан. душанбе, 2011. №3. с. 89-93 (0,65 п.л.). гончареико л.и. эволюционный аспект принципов налогообложения и налогового ад­ министрирования банков // труды вольного экономического общества россии. 2009. № 1 (том 106). с. 84-90. 0,4 п.л. 10. гончареико л.и. налоговое регулирование рынка деривативов в россии: пути дальней­ шего совершенствования // финансы и кредит, 2009. № 7. с. 47-56. 1,0 п.л./гончаренко л.и., галкин с.с. (вклад автора 0,5 п.л,) 11. гончареико л.и. теоретические основы управления налоговыми рисками в деятельно­ сти банков // вестник финансовой академии. 2008. № 4, с. 133-138. 0,35 п.л. 12. гончареико л.и. налог на добавленную стоимость и операции банков по кредитованию и финансированию уступки права требования // финансы и кредит, 2008, № 40. с. 56-63.-0,8 п.л. 13. гончаренко л.и. операции банков с драгоценными металлами: проблемы налогообло­ жения и освобождения от ндс // налоговая политика и практика. 2008. №> 8. с. 4451.0,75 п.л. 14. гончаренко л.и. есн: современные проблемы и модели развития // финансы и кредит. 2005, № 30. с.25-32. 1,2 п.л. / гончаренко л.и., первякова ю.г., иваиеева ю.и. (вклад автора0,4 п.л.) 15. гончаренко л.и. необходимость и порядок регистрации банковских счетов предприятий в налоговых органах // финансы и кредит. 2002. jna 10, с. 15-20 0,6 п.л. 16. гончаренко л.и. порядок предстарления коммерческими банками сведений о финансо­ вохозяйственной деятельности клиентов // финансы и кредит. 2002. * № 14. ->• с. 60-61. 0,2 п.л, 17. гончаренко л.и. налог на прибыль (доход) организаций: проблема выбора объекта об­ ложения // финансы. 2001. № 6. с.31-33. 0,4 п.л. / гончаренко л.и., каллистова ю.и, (вклад автора 0,2 п.л.) 18. гончаренко л.и. вопросы теории и практики налогообложения ценных бумаг // финан^ сы. 1999. № 2. с.25-28. 0,6 п.л. / гончаренко л.и,, новиков д.ю. (вклад автора0,3 п.л.) 19. гончаренко л.и. налогообложение доходов и операций коммерческих банков с ценны­ ми бумагами // вестник финансовой академии. -1997. № 4, -с.бз-66. 0,3 п.л. 20. гончаренко л.и. секреты исчисления ндс // российский экономический журнал м., 1992,№5,-с. 38-43.-0,5 п. american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 15 www.americanjournal.org the importance of green financing sources and mechanisms for the building materials industry allayarov sukhrob rustamovich associate professor of the department of “finance and financial technologies”, tsue orcid:0000-0002-0565-3938 e-mail:s.allayarov@tsue.uz a b s t r a c t k e y w o r d s this article analyzes the economic and environmental significance of green financing sources and mechanisms in the building materials industry. the study examines the effectiveness of green bonds, government grants, subsidies, private investment funds and financial instruments based on the sustainability index in increasing energy efficiency, reducing waste and introducing innovative technologies in building materials production processes. the article also analyzes the strategic role of financial management mechanisms, their potential for optimal resource allocation and achieving sustainable development goals. the results of the study confirm the importance of green financing in increasing industrial competitiveness, reducing environmental risks and serving the sustainable growth of the national economy, while offering an effective model for harmonizing financial and environmental strategies. green financing, building materials industry, sustainable development, financial management mechanisms, environmental innovations, green bonds, energy efficiency, economic efficiency. introduction in recent years, the building materials industry has also undergone significant changes as a result of the increasing global focus on sustainable development and environmental issues. although the construction sector has traditionally been known as an industry that consumes a lot of energy and resources and has a negative impact on the environment, recent scientific research and policy initiatives demonstrate the economic and environmental benefits of integrating this industry with green and sustainable technologies [1]. in particular, green financing sources – including green bonds, government grants, private investment funds and financial instruments based on sustainability indices – play an important role in increasing energy efficiency, reducing emissions and introducing ecoinnovation in the production processes of building materials. at the same time, financial management mechanisms allow manufacturers to effectively implement sustainable development strategies. for example, through optimal capital allocation and strategic management of financial resources, companies are able to introduce new technologies, produce products that meet environmental standards and increase global competitiveness [2]. at the same time, the effective use of green financing sources american journal of business management, economics and banking volume 42 november2025 p a g e | 16 www.americanjournal.org also contributes to the sustainable growth of the national economy, job creation and improvement of social well-being. the study of the effectiveness of green financing in the modern building materials industry is a pressing issue today. in this context, this study aims to systematically analyze the existing financial mechanisms in the building materials production processes, their impact on efficiency, environmental and economic performance, and the possibilities of expanding green financing sources. the results of the study are intended to serve as a scientific basis for the formulation of sustainable financial strategies for industrial enterprises and policymakers. review of relevant literature. green financing sources and mechanisms in the building materials industry have become central to global economic and environmental sustainability research in recent years. the resource-intensive and waste-generating nature of industrial production increases environmental risks and therefore effective green financing mechanisms are considered an important tool for the sustainable development of enterprises. research shows that green financing sources in particular, environmental loans, green bonds, government grants and private investment funds allow enterprises to introduce environmentally friendly technologies, while increasing the efficiency of the production process. the research analysis shows that the effectiveness of green financing mechanisms is directly related to the systematic approach and strategic integration of their application. for example, m. pätäri, j. arminen and k. järvensivu in their research showed that it is possible to reduce waste in production processes and increase energy efficiency by introducing green financing instruments for building materials enterprises [3]. at the same time, e. kivimaa and j. sipilä analyzed the contribution of financial incentives and innovative credit systems to the implementation of sustainable technologies and found that there is a possibility of achieving environmental and economic goals in the combination of public policy and private sector investments [4]. international experience shows that the integrated impact of green financing on the enterprise strategy is also important. t. nguyen, h. pham and l. le modeled the improvement of environmental and economic efficiency through integrated financial management models in the building materials industry [5], their results showed that an effective combination of financial instruments serves to make production processes environmentally sustainable. also, y. li and x. wang emphasized the positive impact of environmental investments and financial management mechanisms on production efficiency and enterprise profitability, evaluating them as an important element of strategic financial planning [6]. in addition, b. calel and a. dechezleprêtre, studying the effectiveness of financial incentives in promoting the development of environmental innovations and the formation of investment flows, noted that the systematic use of green financing sources can increase the environmental and economic sustainability of enterprises [7]. at the same time, e. pätäri showed that the strategic and integrated use of financial management mechanisms can improve the energy efficiency of building materials production and reduce emissions [8]. it should be noted that the analysis of the literature confirms that the strategic integration of green financing sources and mechanisms in the building materials industry allows not only to increase environmental sustainability, but also economic efficiency, to introduce innovative solutions in enterprises and contribute to the sustainable development of the national economy. therefore, scientific research in this area is relevant, aimed at developing a systematic approach to its implementation and assessing its effectiveness. american journal of business management, economics and banking volume 42 november2025 p a g e | 17 www.americanjournal.org research methodology this study used a mixed methodology to assess the effectiveness of green financing sources and mechanisms in the building materials industry. in the first stage, scientific literature, public and private sector reports and international experience were analyzed to identify existing financial instruments and their impact on enterprises. in the second stage, statistical data were collected to measure economic and environmental indicators, including energy consumption, waste volume, and investment efficiency indices. in the third stage, an empirical analysis model was developed to assess the effectiveness of financial sources and mechanisms at the enterprise level using regression and correlation methods. the results obtained during the study were also verified through expert surveys and interviews, and recommendations were developed for the strategic and systematic use of green financing. analysis and results the results of the analysis were focused on assessing the effectiveness of green financing sources and mechanisms in the building materials industry. in the first stage of the study, various forms of green financing state subsidies, environmental loans, private and social investments, as well as green bonds were analyzed. the results obtained showed that these financial resources significantly increase the opportunities for enterprises to introduce innovative production technologies, stimulate the efficient use of energy and resources and reduce production costs by 10–20% [9]. at the same time, investments made through green financing increase the competitiveness of enterprises and support a long-term sustainable development strategy. in the second stage, financial management mechanisms were analyzed, including investment portfolio diversification, environmental risk assessment and monitoring systems. the results of the study showed that when these mechanisms are used in an integrated manner, enterprises will have the opportunity to systematically introduce environmental innovations. for example, strategic measures to reduce waste, increase energy efficiency and reduce carbon footprints can yield significant economic results when implemented in an integrated manner with financial mechanisms. in this way, environmentally-oriented financial management mechanisms can ensure efficient resource management and sustainable innovation in enterprises. 1-table factors limiting green financing mechanisms in building materials enterprises type of barrier description scientific explanation low financial transparency many industrial companies do not have ifrs reports or auditor reports publicly available, which increases risk for investors. lack of financial information requires additional due diligence for banks, which increases transaction costs and slows down the process of financing green projects. limited capital markets thematic (green) bonds, corporate debt instruments are underdeveloped; there are fewer diversification opportunities for investors institutional weaknesses in capital markets create gaps in green financing infrastructure. according to oecd recommendations, sustainable investment flows will not be formed until market mechanisms are introduced. lack of technical and expertise it is difficult for banks and investors to assess the technological feasibility and energy efficiency of industrial projects weak technical expertise in green technologies leads to incorrect risk assessment and denial of funding. it is recommended to overcome this through grants and pilot projects imperfection of the regulatory framework there are no clear regulations on green taxonomy, waste recycling standards or alternative fuels. without legal clarity, investors will not understand the criteria for recognizing a project as “green.” insufficient incentive mechanisms (tax incentives, subsidies) will slow down the market american journal of business management, economics and banking volume 42 november2025 p a g e | 18 www.americanjournal.org first of all, low financial transparency is an obstacle to the flow of sustainable investments. in cases where audit reports based on international financial reporting standards (ifrs) are not provided, it is difficult for banks and lenders to assess the true financial condition of the project. this increases credit risks and creates additional due diligence costs. the second important factor is the insufficient development of capital markets. while green bonds and sustainability-oriented debt instruments have emerged as the main source of financing in international experience, the institutional acceptance of such instruments in the domestic market is slow. this situation limits the private sector’s access to long-term capital and reduces the commercial attractiveness of projects. the lack of technical and expertise is also a significant systemic problem. the lack of engineering audits, energy efficiency expertise and technological monitoring mechanisms necessary to assess the effectiveness of green technologies forces financial institutions to be highly cautious. as a result, projects that could be economically viable may be rejected due to a lack of knowledge and experience. scheme 1. green financing system in the building materials industry this scheme shows the general workflow of green financing sources and mechanisms in the building materials industry. at the beginning of the scheme, public sources and private sector funds are allocated, through which financial support mechanisms are formed. with the help of these mechanisms, american journal of business management, economics and banking volume 42 november2025 p a g e | 19 www.americanjournal.org sustainable projects are financed, which ends with a decrease in negative environmental impact and an increase in economic efficiency. the scheme links the sources, mechanisms and results, describing an integrated system of the green financing process. finally, the imperfection of the regulatory framework, including the incomplete formation of norms such as the “green taxonomy”, waste recycling standards, alternative fuel criteria, creates uncertainty regarding the classification of a project as “green” [10]. the limited availability of incentive mechanisms (tax breaks, subsidies, grants) reduces the interest of market participants in environmental initiatives. the analysis also showed the importance of combining green financing with the digital transformation of the national economy. digital technologies provide opportunities for monitoring the production process, monitoring energy and resource consumption in real time, as well as assessing investment efficiency [11]. at the same time, digital platforms allow enterprises to optimize green financing processes, comply with environmental standards, and maximize the use of financial resources. in general, the results of the analysis revealed the economic, environmental, and strategic effectiveness of green financing sources in the building materials industry. at the same time, a financial management system combined with digital transformation will enable enterprises to systematically implement sustainable innovations, use resources efficiently and contribute to the ecological development of the national economy. the results showed that green financing and financial management mechanisms together are key tools for improving the competitiveness of the building materials industry and achieving the goals of environmentally sustainable development.. conclusions and recommendations the results of the study clearly confirmed not only the economic, but also the environmental and social importance of green financing sources and mechanisms in the building materials industry. through green financing, enterprises will have the opportunity to use energy and resources efficiently, reduce waste, introduce innovative technologies and reduce their carbon footprint. at the same time, financial management mechanisms investment portfolio diversification, environmental risk assessment and monitoring systems when combined with digital transformation, create a strategic platform for sustainable and systematic development. the study showed that green financing not only increases the economic efficiency of enterprises, but also makes a significant contribution to the ecological development of the national economy. as recommendations, firstly, it is recommended that building materials enterprises and investors expand green financing through advanced financial instruments. secondly, it is necessary to strengthen environmental and financial support mechanisms by the state, including the development of tax incentives, subsidies and environmental certification systems. thirdly, it is recommended to introduce financial monitoring and investment efficiency assessment systems using digital transformation tools. these measures will ensure the sustainable, competitive and environmentally responsible development of the building materials industry. references 1. united nations environment programme (unep). financing sustainable construction: green bonds and innovative financial instruments. nairobi: unep. – 2023. 2. world bank. financing sustainable infrastructure: green bonds and investment strategies in construction materials sector. washington, d.c.: world bank group. – 2024. american journal of business management, economics and banking volume 42 november2025 p a g e | 20 www.americanjournal.org 3. m. pätäri, j. arminen, k. järvensivu. “financing renewable energy projects: the role of green financial instruments in sustainable industrial development”, journal of cleaner production, 2017, 161, 1206–1217. 4. e. kivimaa, j. sipilä. “government interventions in the development of low-carbon innovations: a review of policy instruments”, research policy, 2011, 40(2), 355–366. https://doi.org/10.1016/j.respol.2010.09.008 5. t. nguyen, h. pham, l. le. “green finance mechanisms and sustainable construction: evidence from emerging economies”, sustainability, 2020, 12(15), 6102. https://doi.org/10.3390/su12156102 6. y. li, x. wang. “green bonds and their effectiveness in promoting sustainable industrial development”, journal of sustainable finance & investment, 2019, 9(3), 223–240. https://doi.org/10.1080/20430795.2019.1583856 7. b. calel, a. dechezleprêtre. “environmental policy and directed technological change: evidence from the european carbon market”, review of economics and statistics, 2016, 98(1), 173–191. 8. e. pätäri. “the integration of green finance and industrial sustainability strategies: empirical insights from the nordic countries”, journal of environmental management, 2018, 207, 27–38. https://doi.org/10.1016/j.jenvman.2017.10.034 9. l.chen, x.zhou. integration of green finance and sustainable construction: case studies from china. renewable and sustainable energy reviews, 101, 229-241. – 2019. 10. international finance corporation (ifc). green building and sustainable finance: guidelines for emerging markets. washington, d.c.: ifc. – 2020. 11. r.kumar, p.singh. innovative financial tools for promoting eco-efficient construction materials. journal of sustainable finance & investment, 2021. 11(4), 289-307. https://doi.org/10.1080/20430795.2021.1896543. https://doi.org/10.1080/20430795.2021.1896543 american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 65 www.americanjournal.org the socio-economic essence and significance of tax administration in tax policy sharopov dilshodjon rakhmatullayevich independent researcher at tashkent state university of economics a b s t r a c t k e y w o r d s this article analyzes the socio-economic essence and significance of tax administration in tax policy. it also discusses the advanced experiences of foreign countries, their shortcomings and achievements in improving the tax system. the article primarily focuses on enhancing tax administration and includes analysis based on the opinions and views of economists in this field. tax administration, taxpayers, tax policy, tax burden, tax consultants, property taxes. introduction in international practice, the budget systems of countries are shaped by the organizational structure of statehood. in unitary states, the budget system consists of two levels (central and local budgets), while in federal states, it consists of three levels (federal, regional, and local budgets). in confederations, however, regional autonomy in the budget system is extremely high, the central budget is almost nonexistent or very limited, and the main financial resources of the state are controlled by the regions. taxes are distributed among the state (federal), regional (state), and local (municipal) budgets. in economically developed countries, taxes collected from land, property, and real estate constitute the main portion of state budget revenues. in the 38 member countries of the organisation for economic co-operation and development (oecd), these taxes account for 0.9–1% of gdp and comprise 2.5– 10% of total tax revenues. property taxes are implemented in more than 130 countries around the world and are considered a crucial factor in forming local budget revenues. to ensure efficient use of property by owners, various impactful measures are being implemented to increase the share of property tax revenues within local budgets. for example, property taxes constitute 40% of local budget revenues in canada, 30% in the united kingdom, and 20% in france. in countries like france, sweden, and the united states, property taxes serve as a primary source of income for local budgets, with a particular emphasis on taxing real estate. meanwhile, countries such as germany, canada, the netherlands, and denmark prioritize the effective taxation of land. one of the main objectives of the tax system is to ensure that all taxpayers with tax obligations pay their taxes and other mandatory payments to the state budget in full and on time. fulfilling this objective is largely dependent on the tax administration system in place and its effectiveness. american journal of business management, economics and banking volume 35 april 2025 p a g e | 66 www.americanjournal.org before discussing tax administration in detail, it is essential to first examine tax theory and principles of taxation, as tax administration is an integral part of tax policy and is shaped based on those theoretical foundations and principles. taxes are an objective necessity for the formation and functioning of any state. this necessity defines their essence. there are both universal and specific views on the nature of taxes among scholars worldwide, including those in our country. as society continues to evolve, so too do these perspectives. in essence, taxes are obligatory payments set at defined rates that are collected without granting direct individual benefits to the payer. they serve as a financial means to support the functioning of state and local governments and to fulfill their responsibilities. the viability of tax policy lies in its stability, effectiveness, and efficiency. in turn, this viability is closely tied to the tax system and the fundamental principles of taxation. therefore, it is appropriate to begin by reviewing these basic principles before delving deeper into the topic. the renowned english economist adam smith, who made a significant contribution to the theory of taxation, elaborated on four fundamental rules that must be observed in tax collection. these rules, widely referenced in economic literature, are known as adam smith’s principles of taxation: equity principle – all citizens of a state should contribute to government expenses in proportion to their ability to pay, i.e., in line with the income they earn under the protection of the state. observing or neglecting this principle leads to either fairness or inequality in tax distribution. certainty principle – the tax which each individual is bound to pay ought to be certain, not arbitrary. the time, manner, and amount of payment should be clear and predetermined for both the taxpayer and any external parties. convenience principle – every tax should be collected at a time and in a manner that is most convenient for the taxpayer. for instance, if the tax is collected when the rent or income from land is received, the taxpayer is more likely to have the funds to pay it. economy principle – every tax should be levied in such a way that the costs of collection, from the taxpayer to the treasury, are minimized. the tax system, which forms the foundation of a state's tax policy, is made up of taxes, duties, and other mandatory payments necessary for the formation, operation, and sustainability of the state. when introducing these measures, the state relies directly on the above-mentioned principles. tax administration, in turn, is the primary tool that regulates the relationship between the state and taxpayers. in other words, it ensures the implementation of tax policy and reflects its main directions. through tax administration, the state coordinates the functioning of the tax system and the activities of tax authorities. this function becomes especially significant in the context of a market economy. foreign literature offers various definitions of tax administration. some researchers view it as the daily operations of tax authorities, others see it as the control function of the tax service to ensure budget revenues, while another group of scholars interprets it as a set of relationships connected to tax governance. in several countries, tax administration is considered an integral element of the public administration system governing tax relations. in many countries, tax administration is considered a core function of the ministry of finance, with the tax authority retaining certain autonomous responsibilities. for instance, in the united states and united kingdom, the agencies are known as the internal revenue service (irs); in france, it is referred american journal of business management, economics and banking volume 35 april 2025 p a g e | 67 www.americanjournal.org to as the general directorate of public finances; while in germany, tax administration is carried out by the federal tax office and specialized land tax authorities. in russia, the term tax administration and the theory and methodology of tax relations emerged with the transition to a market economy, particularly after the dissolution of the soviet union. one of the first to address this topic was economist m.t. ospanov, who in his 1997 work “tax reforms and harmonization of tax relations”, defined tax administration as “the management of taxes carried out by the state based on the authority and official duties established in tax legislation.” russian economist v.a. krasnetsky, supporting ospanov’s view, expanded the scope of tax administration, noting that it should also include forecasting tax revenues, developing new taxation concepts, and establishing a tax policy framework to support protectionist strategies in foreign economic activities. economists i.a. perenko and v.a. krasnetsky further emphasize that tax administration should be understood as the system through which the state governs all tax relations, including functions such as forecasting tax revenues, approving the budget, optimizing tax rates, allocating tax shares, and evaluating the tax potential of regions. meanwhile, g.ya. chukhrina defines tax administration in a narrower sense, focusing on the efficient organization and execution of tax audits and control functions. an analysis of russian scholars’ perspectives reveals a lack of consensus on the definition of tax administration. most view it primarily as the activity of tax authorities in ensuring compliance with tax legislation by legal and natural persons, which often aligns with the concept of tax control. historically, tax administration was interpreted narrowly as “tax control.” however, today it is understood more broadly as an organizational and managerial system for implementing tax relations, utilizing methods and structures aimed at ensuring tax revenue inflows into the national budget system. currently, researchers consider tax administration to include elements such as tax planning, regulation, consultancy, accounting, and analytical work performed by tax authorities. some economists define it as a complex of coordinated actions aimed at ensuring the full and timely collection of all taxes with minimal administrative costs. for example, l.i. goncharenko regards tax administration as a broader concept than tax control but still sees it as a limited managerial component of the tax system, focusing on the responsibility of tax bodies and officials to ensure timely tax and fee payments. according to o. ifueko, a unique aspect of tax administration is the multi-stakeholder involvement, including: the taxable party (the taxpayer), the collector (tax authorities), the user of the taxes (government ministries and agencies), the lawmakers who create tax laws, and ultimately, the citizens on whose behalf and for whose benefit the taxes are collected. economists d. abdulov and o. abdurakhmanov describe tax administration as the responsible service that ensures timely tax revenue inflows into the budget. notably, the amount of tax revenue is determined annually during the planning of the state budget, and this process depends heavily on the accuracy of financial forecasting and planning. american journal of business management, economics and banking volume 35 april 2025 p a g e | 68 www.americanjournal.org economist kh. jamalov defines tax administration as a component of tax management that ensures the full and timely collection of tax revenues into the state budget, and it is expressed through the set of functions and tasks performed by authorized bodies aimed at achieving this goal. according to u. berdieva, tax administration is one of the key quality indicators in organizing the tax system and executing tax revenue collection in line with modern requirements. economist a. giyasov believes that the effectiveness of tax administration depends largely on establishing legal norms that regulate the relationship between tax authorities and taxpayers. tax administration should ensure taxpayers understand the system, establish fairness, and secure a proper place for taxpayers within the tax relationship framework. according to pogorletsky and keshner, “the integration of digitalization and information technologies into tax administration should reduce the workload of tax authorities and help decrease tax and insurance arrears.” economist t.a. slesareva explains that tax administration is “a managerial process among participants in tax relations, which arises during the collection and control of taxes by tax authorities in the execution of obligations between various levels of the budget system.” she suggests clarifying the definition of tax administration in both broad and narrow terms: in the broad sense, tax administration is viewed as a tax management system within the administrative governance structures at various levels, where a central body enforces strict administrative measures in federal and regional tax relations. this includes using international experience in tax planning, regulation of tax collection and control, and managing taxation processes with socio-economic and fiscal functions in mind. in the narrow sense, tax administration is the direct activity of tax authorities ensuring compliance with tax legislation by all participants in tax relations. in their 2005 textbook "tax administration", o.a. mironova and f.f. khanafeev define tax administration as “a dynamically developing system for managing tax relations that coordinates the activities of tax authorities in a market economy.” they emphasize two key aspects: tax administration functions primarily as a coordination system for tax authority activities. it also serves as a governance system for tax relations. in our view, while expressions like "in a market economy" and "dynamically developing" used by mironova and khanafeev are somewhat useful in explaining the essence of tax administration, they are not decisive criteria in defining its full scope. however, it should be acknowledged that their definitions stand out for being concise and relatively precise — a strength worth noting. at the same time, we believe that their definitions do not fully capture the entire essence and substance of tax administration, primarily because not all relevant aspects have been considered. therefore, these definitions may not suffice to be regarded as comprehensive representations of the essence of tax administration. a number of uzbek economists have also contributed to the academic understanding of tax administration. for instance, economist f. mirzayev, in his study guide "modern methods of tax administration", states that: “tax administration is the system of managing tax relations by coordinating the activities of tax authorities in the implementation of tax policy, based on the rules of tax law.” american journal of business management, economics and banking volume 35 april 2025 p a g e | 69 www.americanjournal.org in our view, the definition of tax administration discussed above more fully expresses its conceptual essence by emphasizing two critical aspects: (1) its foundation on the principles of tax law and (2) its role in the implementation of tax policy. however, even this interpretation does not offer a universally comprehensive and fully developed framework of tax administration that aligns with all functional and institutional criteria. a holistic understanding of tax administration requires consideration of several key factors, primarily drawn from the fundamental functions taxes serve in a state’s governance system. tax administration should be regarded as a system that ensures the stable development of tax relations between the state and taxpayers. it is, therefore, an objective necessity for the distribution and redistribution of national income. when treated as a system, tax administration must incorporate the following elements: a strategic purpose that governs and continuously improves the system, a clear structure involving economic components such as subjects, objects, and core instruments of management. from this systemic perspective, we argue that the primary goal of tax administration is to achieve an optimal balance between the fiscal and redistributive functions of taxation, with minimal economic cost, thereby supporting the sustainable development of the national economy. at the macro level, this entails the following tasks: analyzing macroeconomic taxation processes and developing forecasting models, evaluating deviations between projected and actual fiscal indicators, developing a conceptually and scientifically sound model of tax administration. at the micro level, tax administration must ensure effective control over revenue collection by minimizing compliance costs for both taxpayers and the state, in full accordance with tax legislation. key responsibilities include: implementing the legal framework of tax legislation into practice, mobilizing tax and fee collection in day-to-day operations, designing and executing organizational measures to improve institutional efficiency. as in any governance system, tax administration involves two main components: the subject – administrative bodies empowered with specific legal rights and responsibilities, the object – taxpayers legally obligated to calculate and remit taxes. the object of tax administration is thus the web of tax relations between these two components. tax administration, as a governance mechanism, integrates several key functions: tax planning accounting and reporting tax audits and control regulation of tax processes these collectively form the functional structure of the broader tax mechanisman essential economic instrument for managing fiscal relations. among these, tax planning is essential for determining revenue targets and optimizing the tax burden. the accounting and reporting functions enable authorities to: assess the tax potential of regions, gather and process taxpayer data, monitor compliance and ensure timely payments, american journal of business management, economics and banking volume 35 april 2025 p a g e | 70 www.americanjournal.org generate analytical reports to inform fiscal decisions. the accuracy of tax accounting serves both administrative and policy interests and underpins the operation of all components within the tax administration system. tax control is a crucial function aimed at minimizing tax evasion and ensuring stable budgetary inflows. through effective oversight, authorities can guarantee timely and full tax payments by both individuals and legal entities. as noted by m. kiazolu, property tax is recognized as a stable and hardto-evade source of revenue. property tax systems typically consist of two components: the tax base and the tax rate. entities involved in tax control include taxpayers, tax and customs authorities, and other state bodies responsible for tax collection and enforcement. the regulatory function of tax administration aims to balance the interests of various stakeholderscommunities, corporations, and individuals-by ensuring adequate budgetary resources while maintaining economic stability, particularly in the production sector. in summary, the core responsibilities of a tax administration system include: designing and forecasting long-term tax policy, improving conditions for compliance and equitable taxation, optimizing the tax structure and reporting mechanisms, ensuring accuracy in tax assessments and collection, coordinating legal compliance and protecting stakeholder rights, managing revenue distribution across different budget levels, developing proposals to improve tax administration performance. hence, in a broad sense, tax administration should be seen as a comprehensive system of actions carried out by authorized state institutions, aimed at defining, implementing, and continuously improving tax policy. this includes establishing a robust legal framework, fine-tuning operational mechanisms, and improving the efficiency of tax collection. core operational areas of tax administration include: taxpayer registration and database management, monitoring tax filing and reporting compliance, tracking and recording tax revenues, enforcing tax payment obligations, organizing audits and inspections, applying sanctions in case of legal violations, providing tax education and advisory services, preparing proposals to reform tax legislation. these domains reflect the multifaceted relationship between the state and taxpayers-a theme that will be further elaborated upon in the subsequent chapters of this research. conclusion and recommendations the effectiveness of socio-economic reforms implemented within the framework of a market economy is directly linked to the efficient use of state budget resources. the optimal structure and proper execution of the budget serve as a foundation for the country’s macroeconomic stability and economic growth. american journal of business management, economics and banking volume 35 april 2025 p a g e | 71 www.americanjournal.org as taxes represent the primary source of revenue for the state budget, the proper determination and administration of taxes have consistently been a matter of concern -not only in the present day, but historically, since the formation of statehood itself. during the course of this research, the works of economists and experts in the field have been analyzed to understand various theoretical approaches to tax policy. just as each stage of economic development has its own characteristics, the modern market economy also necessitates a tax system that is appropriately adapted to current realities. an effectively designed tax system is one of the critical factors for national development and the well-being of the population. otherwise, mismanagement in the state budget and instability in economic development may arise, ultimately affecting the public's standard of living. in this context, stabilizing the revenues of local budgets through the revision of procedures for calculating and collecting property and land taxes paid by taxpayers holds significant importance. references 1. s.v. baloshko. property taxation: international experience. taxation of property in foreign countries. retrieved from https://studme.org/1317020420957/ekonomika/nalogooblozhenie_imusches 2. v.a. kundius, yu.n. ivanova. land taxation in the usa and eu countries. economics and business, bulletin of altai state agrarian university, no.11 (49), 2008, pp. 58–59. 3. sh.a. toshmatov. the role of taxes in enterprise development. monograph. tashkent: fan va texnologiya, 2008. p. 79. 4. alley, c., bentley, d. (2005). a remodeling of adam smith’s tax design principles. australian tax forum, vol. 20, p. 579. 5. dabla-norris, e. et al. (2020). the quality of tax administration and firm performance: evidence from developing countries. international tax and public finance, vol. 27, pp. 514–551. 6. ospanov, m.t. (1997). tax reform and harmonization of tax relations. st. petersburg: publishing house of st. petersburg state university of economics and finance. 7. krasnetsky, v.a. (2000). organization of tax administration (on the example of tax authorities of the krasnodar territory). ph.d. dissertation in economics. krasnodar. pp. 72–75. 8. perenko, i.a. (2011). problems of improving taxation in the russian federation and ways of their solution. doctoral dissertation in economics. moscow. p. 354. 9. chukhrina, g.ya. (2001). mechanism and subjects of tax control in the russian federation. ph.d. dissertation in economics. volgograd. pp. 133–134. 10. goncharenko, l.i. (2005). tax administration: conceptual issues. collection of scientific articles of the department of “taxes and taxation”, financial academy under the government of the russian federation. moscow. 11. ifueko, o.o. (2011). emerging issues in tax administration: the way forward. lecture delivered at the 4th national conference of the department of finance, university of lagos, july 12. 12. abdulov, d.r., abdurakhmanov, o.k. (2019). system of forms and methods of tax administration in uzbekistan. international journal of innovative technology and exploring engineering (ijitee), vol. 9, issue 1. doi: 10.35940/ijitee.a9142.119119 american journal of business management, economics and banking volume 35 april 2025 p a g e | 72 www.americanjournal.org 13. jamalov, kh. (2023). towards creating an effective mechanism of tax administration in the context of a digital economy. eurasian journal of law, finance, and applied sciences, 11(3), pp. 91– 96. 14. berdieva, u.a. (2019). improving tax revenue collection in uzbekistan. international journal of economics, commerce and management, uk, vol. vii, issue 6, pp. 342–348. 15. giyasov, a. (2024). improving fiscal policy through the development of tax administration. economics and innovative technologies, issue 1, p. 209. 16. pogorletsky, a.i., keshner, m.v. (2020). digitalization and taxation: the experience of eu countries. finance, issue 11, pp. 58–64. 17. mironova, o.a., khanafeev, f.f. (2005). tax administration: textbook. moscow: omega-l, p. 33. 18. mirzaev, f. et al. (2014). tax administration: a study guide. tashkent: iqtisod-moliya, p. 17. 19. kiazolu, m.o. (2022). an assessment of liberia’s real property tax regime: implications for local government financing. p. 6. 20. bird, r.m., slack, e. (2021). provincial-local equalization in canada: time for a change. institute on municipal finance and governance. mccluskey, w., bahl, r., franzsen, r. (2017). strengthening property taxation within developing asia. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 45 www.americanjournal.org global regulation of green bond issuance rakhmedova madinakhon nusrat qizi associate professor of the department of corporate finance and securities, tseu a b s t r a c t k e y w o r d s this article explores the international regulatory framework for green bond issuance—financial instruments designed to finance environmentally sustainable projects. the analysis focuses on key standards, including the green bond principles, icma guidelines, and the taxonomies of the eu and other jurisdictions. special attention is given to core requirements related to the use of proceeds, financial management, issuers’ internal procedures, and disclosure obligations. the paper examines current trends in legal development, the challenges of standardizing regulatory approaches, and issues concerning investor confidence. the study highlights the critical importance of harmonizing international standards as a foundation for the sustainable growth of the green finance market. green bonds, sustainable finance, environmental investments, international standards, eu taxonomy, disclosure, market regulation, green projects, sustainable development, climate finance. introduction green bonds are debt financial instruments whose proceeds are used to finance or refinance (in whole or in part) new and/or existing environmentally sustainable projects. these bonds comply with recognized international green finance standards, including the green bond principles (gbp) developed by the international capital market association (icma), and/or the climate bonds standard (cbs) established by the climate bonds initiative (cbi). all green bond standards incorporate the following core requirements in accordance with internationally recognized frameworks such as the green bond principles (icma)1and the climate bonds standard (cbi)2: • use of proceeds: the funds raised through bond issuance must be exclusively allocated to projects that deliver clear environmental benefits and fall within the eligible green project categories or established taxonomies. • management of proceeds: a formal process should be in place to track the allocation of proceeds, ensuring they are directed only to qualified green projects. unallocated proceeds may be 1 international capital market association (icma). green bond principles – voluntary process guidelines for issuing green bonds, latest edition. https://www.icmagroup.org/sustainable-finance/ 2 climate bonds initiative (cbi). climate bonds standard and certification scheme. https://www.climatebonds.net/standards american journal of business management, economics and banking volume 36 may2025 p a g e | 46 www.americanjournal.org temporarily invested in liquid instruments, provided they do not finance activities inconsistent with the environmental objectives of the bond. • process for project evaluation and selection: issuers are expected to implement internal processes for project evaluation, selection, and verification, ensuring alignment with the green bond criteria and intended environmental outcomes. • reporting: issuers must periodically disclose information on the use of proceeds, the status of funded projects, the management of unallocated funds, and the environmental impact achieved through the financed activities. green bonds offer a range of advantages for both issuers and investors. for issuers, they serve as a tool for enhancing the organization's reputation as an environmentally responsible business, demonstrating a strong commitment to sustainable development principles. they also enable the diversification of the investor base by attracting a new category of responsible investors with green investment mandates and a focus on sustainable and responsible investing. additionally, issuers may benefit from a potentially lower cost of capital in international markets due to the so-called «greenium» — a premium investors are willing to pay for environmentally oriented instruments. for investors, green bonds provide an opportunity to finance environmentally focused projects with transparent and traceable use of proceeds while advancing their esg-related objectives. investing in such instruments strengthens the investor’s reputation as an environmentally conscious organization committed to sustainable development. moreover, integrating sustainability factors into investment decision-making offers an additional means of identifying long-term risks in a timely manner, thereby contributing to more resilient portfolio management. table 1. general overview of «green» economy presence across selected countries3 country share of «green» economy in gdp (%) volume of products and services ($ billion) employment (million people) additional information usa 4,2 >600 3 japan 3,4 ~1,5 eu 2,5 >3,4 germany 4,8 leader in the export of ecoproducts (12% of the world trade in climate protection equipment) uk 8,8 240 share in exports 5%, in total employment 3% the uk and germany are the top performers in developing a green economy. their success is due to government support measures, exports of environmentally friendly technologies and the widespread introduction of renewable energy sources. the us, japan and the eu continue to actively develop the green sector, providing significant employment and implementing measures to reduce the carbon footprint. 3 the table was compiled by the author using economic statistical data american journal of business management, economics and banking volume 36 may2025 p a g e | 47 www.americanjournal.org thus, the global trend confirms that the development of a «green» economy is becoming a key factor in sustainable economic growth, reducing environmental impact and creating new jobs. uzbekistan has significant potential in this area, especially in the field of solar and wind energy, resource conservation and eco-technologies. issues related to climate change exert a substantial adverse effect on the provision of environmental and food security, as well as on efforts to alleviate poverty within the population. consequently, uzbekistan prioritizes the mitigation of anthropogenic impacts on the climate system, the adaptation to evolving climatic conditions, the expedited implementation of measures facilitating the transition to a green economy, and the adoption of an environmentally sustainable and inclusive model of economic growth. the national standard for green financing comprises the following documents: ✓ the order of the director of the national agency for advanced projects of the republic of uzbekistan, no. 2000-10, “on amendments and additions to the rules for the issuance of securities and the state registration of securities issues,” dated june 10, 2024. additionally, mandatory documents include the framework program for bond issuance and a copy of the certificate issuance conclusion, confirming compliance with green standards. the specialized organization issuing the certificate must possess: • authorization from the international capital market association (icma); • approval from the climate bonds initiative (cbi); • registration with the european securities and markets authority (esma). the primary participants in the issuance process of green bonds include the issuer, external consultant, arranger, legal advisor, verifier, the republican stock exchange «tashkent», the central depository, as well as the rating agency. each of these entities is responsible for performing specific functions that are mandatory in the issuance of international bonds. in partnership with the united nations development programme (undp), the ministry of economy and finance of the republic of uzbekistan conducts a rigorous selection of projects that meet the required criteria to ensure their compliance with globally recognized green standards. this initiative builds upon long-standing cooperation that began in march 2021 and was expanded in 2022 with the signing of a memorandum of understanding between the parties. the memorandum focuses primarily on aligning eurobond issuance with the sustainable development goals (sdgs) and enhancing transparency and accountability for both the public and investors. these joint efforts have resulted in the development of a framework document for sdg bond issuance, which serves as a comprehensive tool to ensure the consistency of criteria and monitoring indicators of effectiveness for methods employed across various areas of public financial management. it also integrates sustainability parameters into the sovereign borrowing process and provides technical support for the issuance of sdg sovereign bonds and green bonds. moreover, undp has supported the government in developing impact assessment methodologies, conducting impact monitoring, strengthening institutional capacity, and organizing training programs for sectoral ministries. references: 1. mirziyoyev, sh. m. strategy for the development of the new uzbekistan for 2022–2026. tashkent: uzinform, 2022. american journal of business management, economics and banking volume 36 may2025 p a g e | 48 www.americanjournal.org 2. national strategy of the republic of uzbekistan for the transition to a green economy for 2019– 2030. presidential decree of the republic of uzbekistan no. pp-4477 dated october 4, 2019. 3. international energy agency (iea). world energy outlook 2023. paris: iea, 2023. [electronic resource]. available at: https://www.iea.org/reports/world-energy-outlook-2023. 4. united nations environment programme (unep). report on the development of the green economy in central asian countries. geneva: unep, 2022. https://www.iea.org/reports/world-energy-outlook-2023 american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 13 www.americanjournal.org econometric analysis of the improvement of credit services zafar absamatovich umarov tashkent state university of economics umarov_zafar@@tsue.uz nilufar khikmatullayevna sharipova tashkent state university of economics sharipova_nilufar@tsue.uz a b s t r a c t k e y w o r d s the quality of credit services and the level of non-performing loans (npls) are key determinants of financial stability and banking sector soundness. this study analyzes the main factors influencing the volume of npls in the banking sector of uzbekistan through advanced econometric modeling. using monthly data from january 2020 to january 2025 obtained from the central bank of the republic of uzbekistan, we examine the impact of capital adequacy, term deposits, liquidity indicators, and other key variables on npl dynamics. pearson correlation analysis is applied to identify significant relationships, followed by multiple regression estimation. diagnostic checks reveal the presence of autocorrelation and heteroskedasticity in the static model, which is addressed through dynamic modeling using armax and arima specifications. the armax(1,1) model demonstrates that capital adequacy has a negative and statistically significant impact on npls, whereas term deposits and liquidity ratios exert positive effects. the final arima(0,1,0) model provides a robust baseline for short-term forecasting, indicating an expected monthly increase of 300.27 units in npl volume. the findings emphasize the importance of strengthening capital adequacy, managing liquidity prudently, and ensuring controlled deposit growth to mitigate credit risk and enhance the quality of credit services in uzbekistan’s banking sector. non-performing loans (npl); credit risk; banking sector; econometric modeling; arima; armax; capital adequacy; term deposits; liquidity ratio; uzbekistan. introduction credit risk remains one of the most critical challenges to the stability of the banking sector. a high level of non-performing loans (npls) not only undermines banks’ balance sheets and profitability but american journal of business management, economics and banking volume 43 december2025 p a g e | 14 www.americanjournal.org also weakens the overall financial system, limiting credit growth and slowing economic development. in many countries, npl dynamics are closely linked to macroeconomic conditions and banking system indicators, including capital adequacy, deposit structure, and liquidity ratios. strengthening credit quality is therefore essential for maintaining financial stability, especially in emerging economies. in recent years, uzbekistan has experienced rapid financial sector development characterized by expanding credit portfolios, growing deposit bases, and evolving liquidity management practices. these changes have increased the importance of monitoring credit risk and understanding the factors driving npls. drawing on international best practices, this study applies econometric modeling techniques to evaluate the relationship between npls and key financial stability indicators in the uzbek banking sector. by integrating both static and dynamic modeling approaches, the research seeks to provide evidence-based recommendations for strengthening credit service quality and supporting sustainable banking sector growth. 2. literature review / analysis the concept of credit has long been recognized as a fundamental economic category. abdullaev yo. et al. define a loan as a relationship arising from the borrowing and repayment of temporarily available funds with remuneration over a specified period. this relationship involves two parties: the lender (creditor) and the borrower (debtor), forming the foundation of modern credit markets [1]. rashidov u. et al. further describe credit as a set of economic relations tied to the borrowing and repayment of funds, emphasizing its structured, economic—not merely social—nature [2]. l. krolevetskaya highlights that credit emerged historically after the introduction of money, accelerating economic activity by enabling the time-shifting of consumption and investment [3]. abdullayeva sh. and azizov underscore the contractual basis of credit transactions: borrowers are obliged to repay borrowed funds within a fixed period along with additional remuneration [4]. at the macro level, o. sattarov notes that the loan-to-gdp ratio is a critical indicator of investment orientation and financial sector depth, with higher ratios typically associated with stronger economic growth and financial intermediation [5]. together, these perspectives establish credit as both a microeconomic and macroeconomic driver of development. understanding its dynamics is crucial for analyzing credit risk, npl trends, and the stability of banking systems—particularly in developing economies such as uzbekistan. 3. data and methodology this study is based on monthly time-series data for the period january 2020 – january 2025, collected from the central bank of the republic of uzbekistan. ⎯ dependent variable (y): volume of non-performing loans (npl) ⎯ independent variables: ⎯ x1: capital adequacy ratio (%) ⎯ x2: volume of term deposits (billion uzs) ⎯ x3: fixed capital (billion uzs) ⎯ x4: highly liquid assets (billion uzs) ⎯ x5: instant liquidity ratio (%) american journal of business management, economics and banking volume 43 december2025 p a g e | 15 www.americanjournal.org the methodological framework consists of the following steps: 1. correlation analysis — using the pearson correlation coefficient to identify statistically significant linear relationships between npls and explanatory variables. 2. multicollinearity check — exclusion of variables with strong mutual correlations (e.g., x2x_2x2 and x3x_3x3 correlation of 0.9872). 3. static regression analysis (ols) — estimation of a baseline multiple linear regression model. 4. diagnostic testing — application of the durbin–watson statistic to test for autocorrelation and breusch–pagan test for heteroskedasticity. 5. dynamic modeling (armax) — inclusion of lagged dependent variables to correct autocorrelation and capture temporal dynamics. 6. forecasting (arima) — identification of the optimal arima specification for npl forecasts based on aic and residual tests. 4. results and discussion 4.1 correlation analysis taking into account the specific characteristics of uzbekistan’s banking system, this study employs econometric methods to analyze the impact of several key indicators on the volume of non-performing loans (npls). the indicators considered include the overall capital adequacy ratio, the volume of term deposits, fixed capital, highly liquid assets, and the instant liquidity ratio. the analysis is based on official data provided by the central bank of the republic of uzbekistan, which were used to assess how these economic indicators influence changes in the volume of npls in the banking sector. based on the empirical results, corresponding forecasts were also developed. since improving the quality of credit services is directly linked to reducing the volume of nonperforming loans, the monthly volume of npls for the period 2020–2025 was selected as the dependent variable, while the banking system stability indicators were chosen as independent variables. to evaluate the relationships between these factors and npl dynamics, the pearson correlation coefficient (r) was applied to measure both the strength and direction of the correlations. this approach made it possible to identify the most statistically significant indicators affecting the level of nonperforming loans in uzbekistan’s banking sector table 1. analysis of the correlation between npl and banking system indicators 1 correlation relationship probability npl (y) capital adequacy ratio (x₁) volume of time deposits (x₂) fixed capital (x₃) highly liquid assets (x₄) instant liquidity ratio (x₅) npl y 1.000000 capital adequacy ratio (x₁) -0,7764 1.000000 volume of time deposits (x₂) 0,8081 -0,5708 1.000000 fixed capital (x₃) 0,8010 -0,5533 0,9872 1.000000 highly liquid assets (x₄) 0,8253 -0,6979 0,8905 0,8694 1.000000 instant liquidity ratio (x₅) 0,8451 -0,7674 0,6932 0,6864 0,8778 1.000000 1 calculated using gretl software. american journal of business management, economics and banking volume 43 december2025 p a g e | 16 www.americanjournal.org based on the statistical table at the 5 percent significance level, the coefficients of the pearson correlation (r) were found to be statistically significant. the correlation coefficients between npls and the selected indicators were as follows: capital adequacy ratio – –0.7764, volume of term deposits – 0.8081, fixed capital – 0.8010, highly liquid assets – 0.8253, and instant liquidity ratio – 0.8451. when selecting explanatory variables for regression analysis, it is essential to ensure that these variables are not excessively correlated with each other. high levels of multicollinearity can distort estimation results and undermine the statistical reliability of the model. in particular, when the correlation between independent variables exceeds their correlation with the dependent variable, the precision and interpretability of the estimated coefficients may be compromised. the correlation matrix reveals a clear multicollinearity problem among the selected indicators. specifically, fixed capital (x₃) ) exhibits a stronger correlation with the volume of term deposits (x₂) — 0.9872 — than with npl itself. likewise, highly liquid assets (x₄) ) display stronger correlations with term deposits (0.8905) and fixed capital (0.8694) than with npl. therefore, to mitigate multicollinearity and improve the robustness of the regression model, the indicators for fixed capital and highly liquid assets were excluded. pearson correlation analysis was then repeated using the remaining variables to examine their relationship with the volume of nonperforming loans. the updated results are presented in the following table. table 2 analysis of the correlation between npl and banking system indicators 2 корреляцион боғлиқлиги эҳтимоллилик npl(y) capital adequacy ratio (x₁) volume of time deposits (x₂) instant liquidity ratio (x₅) npl y 1.000000 capital adequacy ratio (x₁) -0,7764 1.000000 volume of time deposits (x₂) 0,8081 -0,5708 1.000000 instant liquidity ratio (x₅) 0,8451 -0,7674 0,6932 1.000000 based on the statistical table at the 5 percent significance level, the coefficients of the pearson correlation (r) were found to be statistically significant. accordingly, the correlations between npls and the respective indicators were determined as follows: capital adequacy ratio – –0.7764, volume of term deposits – 0.8081, and instant liquidity ratio – 0.8451. 4.2 static regression model (ols) the general form of the multiple linear regression equation can be expressed as: y = α + β1x1 + β2x2 + β3x3 + β4x5 + ⋯ + βnxn + εn where: 2 calculated using gretl software. american journal of business management, economics and banking volume 43 december2025 p a g e | 17 www.americanjournal.org • α − — the constant term, representing the initial value of the dependent variable when all explanatory variables are zero; • β1, β2, … βn − — the regression coefficients that measure the magnitude and direction of the impact of each independent variable on the dependent variable; • x1, x2, … xn — the explanatory (independent) variables; • εn − — the error term capturing unobserved factors that may influence the dependent variable. using the factors that exhibited significant correlations with npls, a probabilistic regression analysis was carried out to estimate the relationship between non-performing loans and the selected explanatory variables. this step allowed for quantifying the marginal effects of key banking indicators on npl dynamics while controlling for potential noise in the data table 3 regression statistical analysis of npl and its influencing factors (model 1))3 dependent variable: npl method: least squares sample (adjusted): 2020:01-2025:01 (t = 61) included observations 61 variables coefficient std. error tstatistic prob. c 16552,0 6464,73 2,560 0,0131 ** capital adequacy ratio (x₁) −877,229 267,157 −3,284 0,0018 *** volume of time deposits (x₂) 0,0578580 0,0104818 5,520 8,67e-07 *** instant liquidity ratio (x₅) 98,1541 26,2621 3,737 0,0004 *** rsquared 0,839672 s.d. of dependent variable 5683,958 sum of squared residuals 3,11e+08 s.e. of regression 2335,040 f(3, 57) 99,50674 adjusted r-squared 0,831233 log-likelihood −557,5895 prob(f-statistic) 1,24e-22 schwarz criterion (sc) 1131,623 akaike information criterion (aic) 1123,179 ρ (rho) parameter 0,881792 hannan–quinn criterion (hqc) 1126,488 mean of dependent variable 14712,60 durbin–watson statistic 0,240215 based on the regression statistical analysis of npl and its influencing factors, the regression equation can be constructed as follows: y = 16 552−877,229 ∗ x1 + 0,0578 ∗ x2 + 98,1541 ∗ x5 + ε 3 calculated using gretl software. american journal of business management, economics and banking volume 43 december2025 p a g e | 18 www.americanjournal.org in this regression model, all the variables are statistically significant at the 5 percent significance level: • capital adequacy ratio (p = 0.0018 < 0.005), • volume of time deposits (p = 8.67e–07 < 0.005), • instant liquidity ratio (p = 0.0004 < 0.005). this indicates that each of these factors has a significant impact on the volume of non-performing loans (npl). specifically: • a 1% increase in the capital adequacy ratio reduces the volume of non-performing loans by approximately 877.229 billion uzs; • a 1 billion uzs increase in the volume of time deposits leads to an increase in non-performing loans by about 57.8 million uzs; • a 1% increase in the instant liquidity ratio results in an increase in non-performing loans by approximately 98.1541 billion uzs. hence, the results suggest that while strengthening capital adequacy contributes to a reduction in credit risk, the growth in time deposits and higher liquidity levels may, under certain conditions, be associated with an increase in non-performing loans in the banking sector. to determine the statistical reliability of the above model, the akaike information criterion (aic) and the schwarz criterion (sc) were examined, along with tests for the presence of firstand second-order autocorrelation in the residuals. based on the 5 percent significance level from the durbin–watson statistical table, the condition for the absence of autocorrelation is considered to hold when 1.54 < dw < 2.46. from the regression results above, the durbin–watson statistic (dw) is 0.240215, which is far below the lower threshold of 1.54. this indicates the presence of strong positive autocorrelation between the residuals of the model. in practical terms, this means that the residuals (errors) from one period are highly correlated with those from the next period — suggesting that important time-dependent dynamics may not have been fully captured by the model. to address this issue, methods such as including lagged variables, applying autoregressive models (ar(1)), or using the cochrane–orcutt or generalized least squares (gls) correction procedures can be employed to reduce autocorrelation and improve the reliability of the regression estimates. to test for the presence of heteroskedasticity in the residuals of the selected regression model, the breusch–pagan (bp) test is applied. in this test, the null hypothesis (h₀) states that heteroskedasticity is not present — meaning that the residuals have constant variance (homoskedasticity). the interpretation of the test results is as follows: • if p-value > 0.05, we fail to reject h₀, indicating that heteroskedasticity is not present, and the model’s random errors are homoskedastic. • if p-value ≤ 0.05, we reject h₀, which implies that heteroskedasticity is present — the variance of the residuals is not constant, and this may affect the reliability of the estimated coefficients. thus, the breusch–pagan test helps to confirm whether the assumption of equal error variance holds for the selected regression model, ensuring the statistical robustness of the estimation results. american journal of business management, economics and banking volume 43 december2025 p a g e | 19 www.americanjournal.org table 4 breusch–pagan test results for the selected regression model of npl and its influencing factors 4. breusch–pagan test results for the selected regression model (second-order heteroskedasticity) method: least squares sample (adjusted): 2020:01-2025:01 (t = 61) dependent variable: uhat variables coefficient std. error t-statistic prob. const 2,55504 3,26232 0,7832 0,4368 capital adequacy ratio (x₁) −0,120962 0,134816 −0,8972 0,3734 volume of time deposits (x₂) −1,60018e-05 5,28944e-06 −3,025 0,0037 *** instant liquidity ratio (x₅) 0,0232335 0,0132527 1,753 0,0850 * sum of squared residuals = 15,572 test statistic: lm = 7,785975, prob.= p(хи-square (3) > 7,785975) = 0,050648 according to the results of the breusch–pagan test, since p < 0.13, it can be concluded that heteroskedasticity is present in the model, indicating that the residuals of the selected regression are not homoskedastic. therefore, considering that the chosen model did not pass the regression diagnostic tests satisfactorily, the forecast indicators derived from this model cannot be considered reliable. 4.3 armax model (1,1) to ensure the statistical robustness of the model and to eliminate autocorrelation, the next step is to modify the model. for this purpose, a dynamic regression approach is applied by including the lagged dependent variable y(t−1) as an explanatory variable, and the arima model is employed. if the initial model is… yt=β0+β1x1t+β2x2t+β3x5t+εt if the initial model was expressed in the following form, the new model — incorporating the lagged dependent variable — will take the following form: yt=α0+α1yt−1+α2x1t+α3x2t+α4x5t+ut as a result, the residuals ut will exhibit less autocorrelation. 4 calculated using gretl software. american journal of business management, economics and banking volume 43 december2025 p a g e | 20 www.americanjournal.org table 5 armax model (model 2) for npl and its influencing factors5 dependent variable: npl method: armax sample (adjusted): 2020:01-2025:01 (t = 61) included observations 61 variable coefficient std. error z p-value const 17875,7 6559,43 2,725 0,0064 *** phi_1 0,870335 0,0695245 12,52 5,92e-036*** theta_1 0,152754 0,134101 1,139 0,2547 capital adequacy ratio (x₁) −768,170 289,136 −2,657 0,0079*** term deposits volume (x₂) 0,0654652 0,0241074 2,716 0,0066 *** instant liquidity ratio (x₅) 50,1475 25,5143 1,965 0,0494 ** standard deviation of innovations 1030,483 log-likelihood −510,6050 standard error of the model 5683,958 schwarz criterion: 1049,986 akaike information criterion 1035,210 mean of innovations: 20,55437 hannan–quinn criterion 1041,001 mean of dependent variable: 14712,60 real part imaginary part modulus frequency root (ar part) 1,1490 0,0000 1,1490 0,0000 root (ma part) -6,5465 0,0000 6,5465 0,5000 based on the regression statistical analysis of npl and its influencing factors, we can construct the regression equation according to the above model. the autoregressive model with a mean and exogenous variable component, armax(1,1) (autoregressive moving average with exogenous variables), takes the following form: yt=17 875,7 + 0,8703⋅yt−1 + 0,1528⋅εt−1 − 768,17⋅x1t + 0,0655⋅x2t + 50,15⋅x5t + εt where: yt — the level of non-performing loans at time t; yt−1 — the volume of non-performing loans in the previous period x1t — capital adequacy ratio at time; x2t — volume of term deposits at time; x5t — instant liquidity ratio at time; εt — the stochastic error (shock) at time. in this regression model, all explanatory variables — capital adequacy ratio (p = 0.0079 < 0.05), volume of term deposits (p = 0.0066 < 0.05), and instant liquidity ratio (p = 0.0494 < 0.05) — are statistically significant at the 5% significance level. 5 calculated using gretl software. american journal of business management, economics and banking volume 43 december2025 p a g e | 21 www.americanjournal.org these results allow us to draw the following conclusions: • a 1% increase in the capital adequacy ratio leads to a decrease in the volume of non-performing loans by approximately 768.17 billion uzs. • a 1 billion uzs increase in the volume of term deposits results in an increase in non-performing loans by around 65.5 million uzs. • a 1% increase in the instant liquidity ratio raises the volume of non-performing loans by approximately 50.15 billion uzs. this implies that while stronger capital adequacy has a stabilizing effect by reducing credit risk, increases in term deposits and higher liquidity levels are associated with rising npl volumes during the observed period. the statistical robustness of the armax model is supported by several diagnostic results: ⎯ improved log-likelihood: the log-likelihood increased to –510.6, compared to –557 in the static model, indicating a better overall fit. ⎯ akaike information criterion (aic): the aic declined to 1035, which is lower than the lagfree model’s value (~1123), confirming superior model specification. ⎯ model stability: the autoregressive root (ar = 1.149 > 1) lies outside the unit circle, demonstrating stationarity of the model. ⎯ ma(1) term exclusion: the ma(1) coefficient was not statistically significant (p > 0.25) and was therefore removed, simplifying the model without compromising explanatory power. taken together, these diagnostics show that the dynamic armax specification provides a more robust and statistically reliable framework for analyzing npl dynamics and their determinants compared to the static regression model. moreover, the arx(1) component of the model successfully captures the temporal dependence of the series. the inclusion of the lagged dependent variable yt−1y_{t-1}yt−1 effectively eliminated residual autocorrelation, as confirmed by the durbin–watson test. this confirms the model’s suitability for further analytical applications and short-term forecasting of npl trends. subsequently, the study evaluates alternative arima models using stata to further refine the forecasting process. three specifications were constructed: arima(0,1,0), arima(1,1,0), and arima(0,1,1). a comparative analysis of these models is presented below, with detailed computations provided in the appendix. table 6 comparative analysis of the models 6: модель aic (≈ 2k – 2ll) loglikelihood ar/ma value conclusion arima(0,1,0) 1014.14 –506.072 — drift (constant): statistically significant arima(1,1,0) 1013.34 –505.672 ar: not statistically significant ar(1): redundant / not necessary arima(0,1,1) 1013.41 –505.705 ma: not statistically significant ma(1): redundant / not necessary note: aic ≈ –2 × logl + 2k by comparing the estimated models, the following conclusions can be drawn: 6 calculated using stata software. american journal of business management, economics and banking volume 43 december2025 p a g e | 22 www.americanjournal.org • in all three models, the akaike information criterion (aic) differences are very small (< 1), indicating that the models are equivalent in terms of fit quality. • both ar(1) and ma(1) terms are not statistically significant (p > 0.3). • only in arima(0,1,0) is the constant (drift) statistically significant at the 5% level. drift=300,27; p=0,044. 4.4 arima model for forecasting based on the calculations above, we constructed the simple arima(0,1,0) model (model 3): yt=yt−1 + 300,27 + εt the results of the ljung–box test confirm that the residuals of the model are free from autocorrelation: q=18.13q = 18.13q=18.13, p=0.1118p = 0.1118p=0.1118. therefore, the model is adequate. this implies that the arima(0,1,0) model can be confidently used for future baseline forecasting based on the time series data. figure 1. one-year forecast of non-performing loans based on the arima(0,1,0) model 7 based on the forecast generated by the arima(0,1,0) model, it can be observed that the volume of non-performing loans is expected to increase steadily by approximately 300.27 units per month. maintaining a high level of capital adequacy (x₁) plays a critical role in mitigating the risk of rising npls. in contrast, expansion of the deposit base (x₂) may contribute to the accumulation of nonperforming assets if credit quality is not subject to strict monitoring and control. although a high liquidity ratio (x₅) generally indicates a stable banking system, it also requires prudent and balanced management. relying on aggressive lending strategies solely on the basis of high 7 calculated using stata software. 50 00 10 00 0 15 00 0 20 00 0 25 00 0 2020m1 2022m1 2024m1 2026m1 2028m1 month_date y forecast_only american journal of business management, economics and banking volume 43 december2025 p a g e | 23 www.americanjournal.org liquidity can increase credit exposure and heighten systemic risk. overall, the arima(0,1,0) forecast underscores the importance of robust capital management, prudent deposit expansion, and carefully balanced liquidity-driven lending strategies as key measures to contain the upward trajectory of npls. the analysis was based on 61 monthly observations from january 2020 to january 2025. initially, a correlation analysis was conducted to identify statistically significant relationships among variables. a linear regression model was then estimated, with the volume of non-performing loans (y) as the dependent variable and capital adequacy ratio (x₁), volume of term deposits (x₂), and instant liquidity ratio (x₅) as explanatory variables. although the coefficients were statistically significant, the model did not pass the autocorrelation diagnostic tests, necessitating the use of a dynamic modeling approach. to address this issue, the lagged dependent variable yt−1y_{t-1}yt−1 was introduced, and an arima (0,1,0) model was developed. this specification proved to be statistically reliable, capturing the underlying trend in the dependent variable, with npl volumes rising at a stable monthly rate of approximately 300.27 units. subsequently, an armax model was estimated to incorporate both exogenous factors and lagged dynamics. this model successfully passed diagnostic and stability tests, confirming its suitability for robust analysis and short-term forecasting. the final equation is expressed as: yt=17 875,7 + 0,8703⋅yt−1 + 0,1528⋅εt−1 − 768,17⋅x1t + 0,0655⋅x2t + 50,15⋅x5t + εt this model highlights the key drivers of the observed upward trend in non-performing loans: ⎯ a 1% increase in capital adequacy reduces npls by approximately 768.17 billion uzs. ⎯ a 1 billion uzs increase in term deposits increases npls by approximately 65.5 million uzs. ⎯ a 1% increase in the instant liquidity ratio raises npls by around 50.15 billion uzs. 5. conclusion the results of this study provide strong empirical evidence that capital adequacy, term deposit volumes, and liquidity levels play a significant role in shaping the dynamics of non-performing loans in the banking sector. while higher capital adequacy contributes to a reduction in credit risk, increased deposit volumes and excessive liquidity may, under certain conditions, lead to a rise in npl levels. these findings underscore the importance of proactive and balanced risk management strategies. to address these challenges and strengthen financial stability, several policy measures are recommended. first, banks should strengthen oversight and control over the use of term deposits to prevent a deterioration in credit quality. second, maintaining and supporting adequate capital buffers is crucial to enhancing the resilience and stability of the banking sector. finally, the development and implementation of sound regulatory measures for balanced liquidity management and effective credit risk control will help ensure the sustainable and secure functioning of the financial system. these measures, when implemented in an integrated manner, can significantly mitigate credit risk, improve the quality of credit services, and contribute to long-term banking sector stability in uzbekistan. american journal of business management, economics and banking volume 43 december2025 p a g e | 24 www.americanjournal.org references 1. abdullaev, yo., qoraliev, t., toshmurodov, sh., & abdullaeva, s. (2009). banking operations: a textbook. tashkent: iqtisod-moliya. 2. abdullaeva, sh. z., & azizov, u. o. (2019). banking operations. tashkent: iqtisod-moliya. 3. krolevetskaya, l. p., & tikhomirova, e. v. (2009). banking: credit activity of commercial banks. moscow: knorus. 4. rashidov, o. yu., alimov, i. i., toymuhamedov, i. r., & tojiev, p. p. (2008). money, credit and banks. tashkent: tashkent state university of economics. 5. sattarov, o. b. (2018). improving the methodology for ensuring the stability of the banking system of the republic of uzbekistan (doctoral dissertation abstract). tashkent. 6. pancotto, l. (2024). the evolution and determinants of the non-performing loan. pacific-basin finance journal, 84, 102221. https://doi.org/10.1016/j.pacfin.2024.102221 7. isakov, o. (2024). factors affecting non-performing loans: empirical evidence from commercial banks in uzbekistan. journal of economics and financial analysis, 3(2), 45–58. 8. rustamov, j. (2023). trends and patterns of accumulation of non-performing loans in the banking sector of uzbekistan. journal of eurasian economies, 14(1), 75–88. 9. central bank of the republic of uzbekistan. (2025). official banking statistics. retrieved from https://cbu.uz 10. umarov z.a. tijorat banklarida kreditlash jarayonini boshqarishda buxgalteriya hisobining ahamiyati // yashil iqtisodiyot va taraqqiyot ilmiy jurnali 2025, 4-son, 2409-2412 11. umarov z.a. bank kredit portfeli ichki auditining o’ziga xos xususiyatlari // aktuar moliya va buxgalteriya hisobi ilmiy jurnali 2025, 5(02), 66-73 12. umarov z.a. tijorat banklarida kreditlash jarayonini boshqarishda buxgalteriya hisobining ahamiyati // yashil iqtisodiyot va taraqqiyot ilmiy jurnali 2025, 4-son, 2409-2412 https://cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 77 www.americanjournal.org analysis of food safety assessment indicators yuldashev golibjon turgunovich, associate professor of the department of “green” economy tashkent state university of economics, email: yugolib76@gmail.com najmiddinov yakhyo fazliddin ugli senior teacher, tashkent state university of economics, phd student at the department of “green” economy, email:yakhyonajmiddinov1996@gmail.com a b s t r a c t k e y w o r d s in this scientific work, the state of food security in uzbekistan was analyzed using statistical and econometric methods. in the study, the relationship between the production volumes of agricultural products, agriculture and livestock, food imports and levels of environmental pollution was studied using linear regression models. the results of the study show that while food imports have a positive impact on all production sectors, harmful substances emitted into the atmosphere have a negative impact. based on the analysis, practical and theoretical proposals have been developed for the rational use of imported resources and the reduction of environmental pollution in ensuring food security. food security, agriculture, farming, animal husbandry, import, environmental pollution, harmful substances, linear regression, correlation analysis, regression analysis. introduction assessment and analysis of food security in uzbekistan is carried out with the aim of further improving the well-being and quality of life of the population of our republic, as well as developing specific parameters for ensuring adequate food supply for the population. today, due to the lack of systematic recording of food security indicators in our country and the current population size, we conditionally linked food security with the level of agricultural production, agricultural production, and livestock production, and tried to analyze each of them separately. in the “development strategy of new uzbekistan for 2022–2026” put forward by the president of the republic of uzbekistan, ensuring food security is identified as one of the priority areas, and the tasks of “diversifying agriculture, increasing food production, strengthening food security, and increasing export volumes” are clearly defined. at the same time, this strategy sets out such important goals as filling the domestic market with environmentally friendly, affordable, and high-quality food products, ensuring the stability of food prices, and modernizing the logisticse [1]. american journal of business management, economics and banking volume 36 may2025 p a g e | 78 www.americanjournal.org the effective development of the economy of uzbekistan and the well-being of the population directly depend on increasing the effectiveness of food security indicators based on the implementation of the food program. figure 1. per capita food consumption (thousands of soums) [2] from the data presented, it can be seen that in the forecast period (2019-2030), the per capita food production in our republic will increase by 2.9 times, the permanent population by 17.7 percent, the growth dynamics of the total food production volume in 2030 compared to the previous year will be 6.3 percent, the share of food industry production in the structure of industrial production will be 44.6 percent, the share of food production in the structure of consumer goods production will be 0.7 percent, the average number of employees employed in the food industry will be 0.5 percent, the yield of grain products among agricultural crops will increase by 0.9 percent, the production of cereals and legumes by 2.2 times, the production of milk and dairy products by 2.3 times, and the reduction in the volume of technical crops (cotton cultivation) in agricultural arable land by 3.1 percent[3]. research methodology the analyses were performed using ms excel and stata programs. regression equations were calculated using the ols (ordinary least squares) method, and the statistical reliability of the model was assessed using t-statistics, p-value, r², aic and bic indicators for each model. the following econometric and statistical methods were used in the study: descriptive statistics to identify general trends between food products, imports and environmental indicators. correlation analysis to determine the direction and degree of correlation between variables. linear regression analysis (ols) to identify the main factors affecting the production of agricultural products and assess their impact. analysis and results first of all, we tried to form an existing database in the process of selecting related and unrelated factors for the implementation of the econometric analysis process. the table below lists the main factors affecting the volume of agricultural production and their indicators. first of all, the factors affecting the volume of agricultural production were analyzed, and we can see this in the table below. 0 500 1000 1500 2000 2500 3000 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 3 0 american journal of business management, economics and banking volume 36 may2025 p a g e | 79 www.americanjournal.org table 1 table with indicators of qsmh, imp and azm [4] y qxmh (billion soums) imp (billion soums) azm (t) 2015 81794.3 1727.9 1162.1 2016 99604.6 1691.4 975.1 2017 115599.2 1717.2 1008.2 2018 148199.3 1049 853.5 2019 187425.6 1327.4 883.7 2020 216283.1 1608.5 952.8 2021 250250.6 1851.3 924.4 2022 303415.5 2509.5 908.7 2023 345191.7 3392.9 873.6 2024 405418 3495.7 763.2 this table shows the volume of agricultural products and the volume of food imports that contribute to this volume, as well as the volume of harmful substances emitted into the atmosphere. the following shows the correlation between these factors. variables (1) (2) (3) (1) qxmh 1.000 (2) imp 0.838 1.000 (3) azm -0.748 -0.430 1.000 according to this correlation, while the volume of food imports has a positive impact on the volume of agricultural production, harmful substances emitted into the atmosphere have an inverse effect on the volume of agricultural production. the table below shows the regression relationship between them. table 2 regression correlation table between qxmh, imp, and azm factors [5] qxmh coef. st. err. t-value p-value [95% conf interval] sig imp 83,742 18,666 4.49 .003 39,605 127,879 *** azm -489.953 145,564 -3.37 .012 -834.156 -145.749 ** constant 500645.15 156214.46 3.20 .015 131256.64 870033.65 ** mean dependent variable sd dependent var 109763.630 r-squared 0.886 number of observations 10 f-test 27,285 probe > f 0.000 akaike crit. (aic) 243,704 bayesian crit. (bic) 244,612 *** p<.01, ** p<.05, * p<.1 economic analysis based on regression analysis between the volume of agricultural products (vap), imports (imp), and emissions of harmful substances into the atmosphere (azm) shows that there is a significant statistical relationship between these factors. according to the regression results, the impact of the import indicator on agricultural production is positive and statistically significant. more precisely, every 1 billion soums increase in the volume of imports can increase the volume of agricultural production by an average of 83.742 billion soums. this means that imported technologies, american journal of business management, economics and banking volume 36 may2025 p a g e | 80 www.americanjournal.org fertilizers, agricultural machinery and other necessary resources have a direct positive impact on productivity[6]. on the other hand, the amount of harmful substances emitted into the atmosphere has the opposite, that is, negative, effect. the negative and statistically significant coefficient in the model means that the volume of agricultural products decreases as environmental pollution increases. this directly indicates that in regions with a low level of environmental sustainability, productivity and total production volume decrease. increased emissions of harmful substances reduce agricultural efficiency by negatively affecting plant and soil quality [7]. the model has a high level of accuracy, with an r-squared of 0.886. this means that 88.6 percent of the variation in the dependent variable of the regression model is explained by two main factors: imports and emissions. the f-statistic and p-values confirm the overall significance of the model. in the case resulting from the analysis, we can write the regression equation as follows. qxmh = 500645.15 + 83.742 * imp 489.953 * azm on this basis, it can be said that imports are an important source of agricultural production in uzbekistan, and the ecological environment serves as a significant risk factor. in the future, along with the effective use of imported resources to ensure food security, measures aimed at reducing environmental pollution should also be considered as an important factor in ensuring the sustainability of production. it is also important to study the impact of imports on food security and the production of agricultural products, which are key to the supply chain in this sector, and the impact of harmful substances emitted into the atmosphere. the table below provides quantitative indicators of these factors. table 3 table with dhm, imp, and azm indicators y dhm imp azm 2015 43194.3 1727.9 1162.1 2016 55429 1691.4 975.1 2017 61754.8 1717.2 1008.2 2018 83303.6 1049 853.5 2019 98406.4 1327.4 883.7 2020 111904.5 1608.5 952.8 2021 123858.8 1851.3 924.4 2022 152130.4 2509.5 908.7 2023 177962.7 3392.9 873.6 2024 203082.7 3495.7 763.2 this table shows the volume of agricultural products, imports, and emissions of harmful substances into the atmosphere between 2015 and 2024. these factors are considered to have a direct and indirect impact on food security; therefore, an attempt was made to develop practical and theoretical proposals by conducting correlation and regression analysis through these factors. american journal of business management, economics and banking volume 36 may2025 p a g e | 81 www.americanjournal.org below is a correlation analysis between these factors. variables (1) (2) (3) (1) dmh 1.000 (2) imp 0.834 1.000 (3) azm -0.768 -0.430 1.000 this correlation analysis shows that there is a positive relationship between agricultural production and import volumes but an inverse relationship between emissions and agricultural production. from the regression analysis below, we can see that these two factors are considered the most important factors, directly and indirectly, in the production of agricultural products. table 4 regression correlation table between dmh, imp and azm factors dmh coef. st. err. t-value p-value [95% conf interval] sig imp 39,869 8.51 4.69 .002 19,746 59,991 *** azm -252.918 66,364 -3.81 .007 -409.843 -95.993 *** constant 265234.62 71219.461 3.72 .007 96827.358 433641.89 *** mean dependent variable 111102.720 sd dependent var 53600.918 r-squared 0.901 number of observations 10 f-test 31,819 probe > f 0.000 akaike crit. (aic) 227,995 bayesian crit. (bic) 228,903 *** p<.01, ** p<.05, * p<.1 this regression analysis examines the relationship between the volume of agricultural production, i.e., the volume of agricultural products, and imports (imp) and emissions of harmful substances into the atmosphere (azm). according to the results, the coefficient of imports is positive and significant (39.869; p=0.002), which means that an increase in imports has a positive effect on the volume of agricultural products. on the contrary, the coefficient of azm is negative (-252.918; p=0.007), which indicates that the volume of agricultural production decreases as environmental pollution increases. the r² indicator of the model is 0.901, which means that 90.1 percent of the dependent variable is explained. this indicates that the model has high explanatory power and is statistically reliable. therefore, increasing the volume of imports and reducing environmental pollution are important factors that have the strongest impact on the volume of agricultural products. based on the above, we can write the linear regression equation in the following form. dhm = 265234.62 + 39.869 * imp 252.918 * azm another area that is also important for food security and its supply chain is the volume of livestock products. the table below shows the volume of livestock production from 2015 to 2024 and the factors affecting it. american journal of business management, economics and banking volume 36 may2025 p a g e | 82 www.americanjournal.org table 5 table with dhm, imp, and azm indicators y chmh imp azm 2015 38600 1727.9 1162.1 2016 44175.6 1691.4 975.1 2017 53844.4 1717.2 1008.2 2018 64895.7 1049 853.5 2019 89019.2 1327.4 883.7 2020 104378.3 1608.5 952.8 2021 126391.8 1851.3 924.4 2022 151285.1 2509.5 908.7 2023 167229 3392.9 873.6 2024 202335.3 3495.7 763.2 this table shows the volume of livestock products and the factors affecting them, such as the volume of imports and the volume of emissions into the atmosphere. there are many influencing factors, but these factors are indirectly influencing the increase in the volume of livestock products. the correlation between these factors is as follows. variables (1) (2) (3) (1) chmh 1.000 (2) imp 0.840 1.000 (3) azm -0.727 -0.430 1.000 as can be seen from this correlation matrix, imports have a positive impact on the volume of livestock products, while emissions of harmful substances into the atmosphere have a negative impact. in the table below, we can see the regression analysis between them. table 6 regression correlation table between chmh, imp, and azm factors chmh coef. st. err. t-value p-value [95% conf interval] sig imp 43,873 10.27 4.27 .004 19,588 68.157 *** azm -237.034 80.09 -2.96 .021 -426.417 -47.652 ** constant 235410.45 85949.988 2.74 .029 32171.021 438649.87 ** mean dependent variable 104215.440 sd dependent var 56302.717 r-squared 0.869 number of observations 10 f-test 23.256 probe > f 0.001 akaike crit. (aic) 231,755 bayesian crit. (bic) 232,663 *** p<.01, ** p<.05, * p<.1 this regression analysis shows the relationship between the volume of livestock products, i.e., the volume of livestock products, and imports (imp) and emissions of harmful substances into the atmosphere (azm). according to the regression results, the effect of imports on livestock products is positive and statistically significant (coef. = 43.873; p = 0.004), which means that technologies and resources coming through imports increase the efficiency of livestock production. on the other hand, emissions of harmful substances have a negative effect (coef. = -237.034; p = 0.021); that is, as environmental pollution increases, the volume of livestock products decreases. the model r² = 0.869, which means that 86.9 percent of the dependent variable is explained. these results confirm that american journal of business management, economics and banking volume 36 may2025 p a g e | 83 www.americanjournal.org increasing imports and improving the ecological environment are important factors in the development of livestock production. based on the above, we can write the linear regression equation as follows. chmh = 235410.45 + 43.873 * imp 237.034 * azm based on the above statistical and econometric analyses, it is clear that the main sectors of agricultural production in uzbekistan, namely agriculture and livestock, and the factors determining their production volumes and their interdependence, play a significant role in ensuring food security. the analyses show that imports have a positive impact on the production volumes in all sectors (general agricultural products, agriculture, and livestock). this means that imported products, in particular, as machinery, seeds, fertilizers, fodder, and technological resources, serve as a means of supporting local production. in particular, the regression results show that the impact of imports on the volume of agricultural products is high and statistically significant, indicating the need to consider this factor as an important resource in the food security strategy. on the other hand, the environmental factor, namely the volume of harmful substances emitted into the atmosphere, is found to have a negative impact on the volume of production in all analyzed sectors. increased emissions of harmful substances have a direct negative impact on plant growth rates, soil fertility and animal health, resulting in a decrease in overall productivity and output. on this basis, it can be said as a general conclusion that in ensuring food security in uzbekistan, rational use of import resources, improving the quantitative indicators of agricultural production and simultaneously strengthening environmental safety measures are urgent strategic directions. by effectively managing import infrastructure, expanding agro-cluster systems, introducing resourcesaving technologies, and pursuing a strict environmental policy on environmental protection, uzbekistan can achieve significant results in ensuring the stability of food security. at the same time, the opportunities for fully satisfying the needs of the population of the republic for healthy nutrition, improving their well-being, and ensuring sustainable economic growth in the agricultural sector will expand. conclusion and suggestions a comprehensive analysis of the situation in uzbekistan regarding food security showed that the agricultural sectors—general production, agriculture, and livestock—are the main pillars of direct food security. the regression analysis conducted in the study yielded the following results: imports have a positive and statistically significant impact on agricultural production across all sectors. imports of technology, fertilizers, and other resources help increase productivity. the amount of harmful substances emitted into the atmosphere had a negative impact on all three sectors. this means that productivity and production efficiency are reduced as a result of the deterioration of the ecological environment. the r-squared values in the model are high (ranging from 0.869 to 0.901), indicating that the selected factors are the main explanatory factors. the f-test and p-values for all three regression models confirm the overall statistical significance of the model. based on these results, it can be said that effective management of imported resources and reduction of environmental pollution are of strategic importance in ensuring food security. as a result of the research, we can make the following suggestions. american journal of business management, economics and banking volume 36 may2025 p a g e | 84 www.americanjournal.org 1. creating a system for rational use of imported resources: stabilize the import of agricultural machinery, fertilizers, seeds, technological equipment, and fodder through strategic sources. encourage the import of modern agricultural technologies through the introduction of preferential customs procedures. 2. strengthening measures aimed at ensuring environmental sustainability: strengthen monitoring of harmful substances emitted into the atmosphere, introduce strict restrictions and economic sanctions against sources of pollution. widespread introduction of environmentally friendly technologies in agriculture, such as "green technologies". 3. formulation of food safety indicators: continuously record key food security indicators (calorie consumption, food supply index, volume of produced products, etc.) annually at the republican, regional and district levels. 4. development of agroclusters and logistics infrastructure: expand agro-cluster systems that provide local producers with uninterrupted access to imported resources. develop modern storage, transportation and logistics systems to reduce losses in product delivery. 5. supporting scientific research and innovation: financial support for scientific research in the field of food security, agroecology and technological innovations. establish ongoing training and advisory services for farmers and farms to reduce environmental pollution and use resources efficiently. 6. learning from international experience and strengthening integration: strengthening the exchange of experiences by expanding cooperation with fao (food and agriculture organization of the united nations), ifad and other international institutions. references 1. appendix 1 to the strategy for the development of agriculture of the republic of uzbekistan for 2020-2030 / appendix 1 to the decree of the president of the republic of uzbekistan “on approval of the strategy for the development of agriculture of the republic of uzbekistan for 2020-2030” dated october 23, 2019, no. pf-5853 // (national database of legal documents, 24.10.2019, no. 06/19/5853/3955)/http://lex.uz/docs/4567334 2. president of the republic of uzbekistan. (2022). decree no. pf-60 on approval of the development strategy of new uzbekistan for 2022–2026. date of adoption: january 28, 2022. https://lex.uz/docs/5841063 3. united nations. (2023). the sustainable development goals report 2023. sdg 2 – zero hunger. new york: un publishing. https://unstats.un.org/sdgs/report/2023/ 4. kadirova gg (2023). “evolution and prospects of uzbekistan's food security policy.” journal of economics and innovative technologies, no. 2. 5. khudoyberdiyeva di (2022). “the role of local producers in food security.” proceedings of the republican scientific and practical conference. tashkent. 6. rasulov ax (2021). “food security and agro-industrial complex: the experience of uzbekistan.” master's thesis. tsuu, faculty of economics. http://lex.uz/docs/4567334 https://lex.uz/docs/5841063 https://unstats.un.org/sdgs/report/2023/ american journal of business management, economics and banking volume 36 may2025 p a g e | 85 www.americanjournal.org 7. saidova mj (2023). “the interrelationship between food security and efficient resource use.” collection of economic reforms in the agrarian sector. samarkand state university. 8. fao. (2022). "food security indicators in central asia." regional policy conference report. rome. 9. boboyev dr (2020). “problems of ensuring food security in the context of climate change.” proceedings of the scientific and practical conference, nukus. 10. mamadiyorov o. food safety as a priority of state policy. "business-expert" magazine, 2017, issue 10.-29 p. 11. ahmedov o. the role of agricultural economics in providing the republic of uzbekistan with food products. //biznes-ekspert. – 2018. no. 8. – 81p. 12. miloserdov, vv prodovolstvennaya bezopasnost v mire i yee obespechenie /vv miloserdov. yekaterinburg: obshchestvo s ogranichennoy otvetstvennosti "uralskoe izdatelstvo", 2015. 122 p. 13. grebmer, k. 2016 global hunger index: getting to zero hunger /k. von grebmer, j. bernstein, d. nabarro and dr. bonn washington, dc and dublin: welthungerhilfe, international food policy research institute, and concern worldwide, 2020. 47 p. 14. economist intelligence unit; corteva agriscience. (2022). global food security index (gfsi) 2022: building sustainable, inclusive food systems.https://impact.economist.com/sustainability/project/food-security-index 15. official website of the ministry of agriculture of the republic of uzbekistan –https://agro.uz 16. ministry of investments, industry and trade of the republic of uzbekistan –https://mift.uz 17. ministry of higher education, science and innovations of the republic of uzbekistan. (2024). collection of official information and regulatory documents. tashkent.https://edu.uz 18. national statistics agency of the republic of uzbekistan –https://stat.uz 19. food and agriculture organization of the united nations (fao) –https://www.fao.org 20.global food security index (economist intelligence unit) – https://impact.economist.com/sustainability/project/food-security-index 21. lex.uz – national database of legislative documents of the republic of uzbekistan – https://www.lex.uz 22. un sustainable development goals – sdg 2: zero hunger –https://sdgs.un.org/goals/goal2 23. www.cer.uz 24. www.uzreport.com https://impact.economist.com/sustainability/project/food-security-index https://agro.uz/ https://mift.uz/ https://edu.uz/ https://stat.uz/ https://www.fao.org/ https://impact.economist.com/sustainability/project/food-security-index https://www.lex.uz/ https://sdgs.un.org/goals/goal2 http://www.cer.uz/ http://www.uzreport.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 129 www.americanjournal.org effective use of financial management methods in companies 1karimov akramjon ikromjon ugli dsc in economic sciences, associate professor of department of “corporate finance and economics”, tashkent state university of economics, uzbekistan, email: a.karimov@tsue.uz orcid: 0000-0001-9426-8777 a b s t r a c t k e y w o r d s this article examines the effective use of financial management methods in companies as a vital driver of sustainable growth, profitability, and organizational resilience. in an increasingly complex and competitive economic environment, companies must adopt integrated financial strategies that support both short-term performance and long-term value creation. the study highlights key financial management methods, including budgeting and forecasting, cost control, capital budgeting, working capital optimization, and financial risk assessment. emphasis is placed on the role of data analytics, digital technologies, and performance-based evaluation systems in enhancing financial decision-making and accountability. the research incorporates comparative analysis of industry practices and empirical evidence from companies operating in both developed and emerging markets. findings indicate that companies which systematically apply modern financial management tools achieve better financial stability, improved resource allocation, and stronger investor confidence. the article concludes by proposing a comprehensive framework for the strategic and adaptive application of financial management methods to increase overall corporate efficiency and competitiveness. joint-stock companies; financial management methods; corporate finance; available funds; capital budgeting; stock market; financial assets; shareholder value; budgeting and forecasting; cost control; market capitalization; financial decision-making; securities market; liquidity management; return on investment (roi); internal controls; digital financial tools; market quotes; financial sustainability; international finance market. introduction in the current era of intensified global competition, financial stability, and rapid technological change, the effective use of financial management methods has become a cornerstone of corporate success. financial management is not merely a supporting function but a strategic element that directly influences a company's profitability, investment capacity, and long-term sustainability. effective financial management is critical for companies seeking to ensure liquidity, optimize capital structure, american journal of business management, economics and banking volume 37 june2025 p a g e | 130 www.americanjournal.org and achieve long-term growth. by applying advanced financial planning techniques, firms can balance short-term obligations with strategic investment goals. tools such as cash flow forecasting, scenario analysis, and capital budgeting allow managers to make informed decisions that minimize risk while maximizing returns. integrating financial performance metrics into organizational strategy strengthens accountability and enhances corporate agility. “financial management methods are not merely accounting instruments—they are strategic levers that influence every layer of organizational decisionmaking,”[1] states the imf’s 2022 financial systems report. companies today must employ a range of modern financial tools and methodologies to optimize capital structure, manage risks, increase operational efficiency, and enhance shareholder value. these methods include budgeting, forecasting, cost-benefit analysis, financial modeling, and performance evaluation systems, which collectively provide the basis for sound financial decision-making. the increasing complexity of business environments, along with heightened expectations from investors, creditors, and regulatory institutions, necessitates a more analytical and proactive approach to financial management. the world bank underscores the role of integrated financial management systems (ifms) in improving transparency, cost-efficiency, and reporting accuracy. these systems provide real-time visibility into revenues, expenditures, and debt obligations, helping companies reduce inefficiencies and fraud. the deployment of digital financial dashboards and automated reporting mechanisms also enables faster and more evidence-based responses to market changes. when combined with robust internal controls, such tools support fiscal discipline and stakeholder confidence. “the integration of financial technologies into corporate management enhances efficiency and improves decision-making integrity,”[2] the world bank emphasized in its 2023 publication. moreover, the ability to effectively manage financial resources plays a critical role in a company’s capacity to innovate, expand into new markets, and withstand economic volatility. this article explores the theoretical foundations and practical applications of advanced financial management methods, highlighting how their systematic use contributes to improved financial discipline, transparency, and corporate governance. according to research by the oecd, the effective use of debt and equity instruments directly affects a company’s valuation and investment attractiveness. strategic decisions regarding leverage ratios, dividend policies, and reinvestment priorities shape the firm’s risk-return profile. sound financial governance ensures that capital is allocated to high-yield projects, while maintaining flexibility to absorb external shocks. these methods also reinforce investor trust, especially in joint-stock companies operating in volatile economic environments. “capital structuring decisions are central to financial management, influencing both operational resilience and investor sentiment,”[3] notes the oecd’s 2021 financial governance report. special attention is given to comparative practices in developed and emerging economies, showcasing successful case studies and drawing lessons for companies aiming to strengthen their financial performance in a rapidly changing economic landscape. effective financial management is a cornerstone of sustainable corporate growth, particularly in emerging markets where volatility and resource constraints often challenge strategic execution. to address these complexities, institutions such as the asian development bank (adb) and the international finance corporation (ifc) have conducted in-depth empirical research on advanced financial management tools and the capabilities required to implement them. empirical studies by the asian development bank show that financial management techniques such as value-based budgeting and economic value added (eva) help firms align performance incentives with shareholder interests. american journal of business management, economics and banking volume 37 june2025 p a g e | 131 www.americanjournal.org these approaches focus on creating long-term value rather than short-term profits and are often supported by performance-linked compensation schemes. when financial strategies are clearly communicated across departments, they foster a culture of fiscal responsibility and continuous improvement. this, in turn, boosts organizational efficiency and competitiveness. “value-based financial management strengthens long-term alignment between corporate strategy and shareholder value,” [4] stated the adb in its 2022 analysis. furthermore, the international finance corporation (ifc) highlights the importance of capacity building in financial departments to ensure effective implementation of financial methods. trained personnel can better interpret financial data, conduct accurate risk assessments, and ensure regulatory compliance. companies that invest in financial literacy and internal training programs are more likely to implement adaptive and responsive financial strategies. this capability is especially vital in complex markets with high levels of uncertainty. “human capital is the foundation of effective financial management; without skilled professionals, even the best systems will underperform,” [5] asserts the ifc’s 2021 strategic finance study. in conclusion, the integration of value-based financial tools and strategic human capital development offers a dual pathway to enhance both operational resilience and investor confidence. as financial environments continue to evolve, organizations that institutionalize these best practices will be better positioned to drive sustainable growth and long-term value creation. the relevance of the research subject in many companies, especially in developing economies, ineffective financial management practices have led to issues such as suboptimal capital allocation, excessive operating costs, and weak financial discipline, ultimately reducing business sustainability and shareholder confidence. a lack of strategic planning in budgeting, forecasting, and investment decision-making often results in misaligned financial priorities and poor resource utilization. moreover, insufficient integration of financial risk management tools, inadequate internal control systems, and a weak corporate finance culture hinder companies from responding flexibly to market changes and financial shocks. in this context, the effective use of modern financial management methods—such as value-based management, financial modeling, performance-based budgeting, and cost-benefit analysis—becomes a critical factor in ensuring profitability, liquidity, and solvency. applying international best practices in financial planning and control not only strengthens financial transparency but also enhances decision-making at all levels of management. therefore, a comprehensive study of the financial management methods used in companies, their effectiveness, and conditions for successful implementation is necessary to increase financial resilience and strategic competitiveness in the modern economy. the problem of the research extensive research has been conducted on the importance of financial management methods in enhancing the performance and stability of companies. these studies largely focus on the theoretical foundations and classification of financial tools such as budgeting, forecasting, investment appraisal, and risk management. they highlight the critical role these methods play in optimizing resource allocation and maximizing shareholder value. however, there remains a significant gap in understanding the effective practical application of these financial management methods within companies operating in diverse economic contexts. many firms struggle with adapting standardized financial techniques to their unique operational environments, which often results in suboptimal american journal of business management, economics and banking volume 37 june2025 p a g e | 132 www.americanjournal.org decision-making, inefficient capital utilization, and weak financial control. additionally, the integration of modern technologies such as financial analytics and digital management platforms into traditional financial practices is still insufficiently explored. current research inadequately addresses the challenges companies face in implementing comprehensive financial management frameworks that align with their strategic goals and market conditions. consequently, the need arises for focused research on how companies can effectively utilize financial management methods to enhance financial discipline, improve operational efficiency, and ensure sustainable growth. the purpose of the research in the contemporary business environment, the effective use of financial management methods has become indispensable for companies striving to maintain competitive advantage and achieve sustainable growth. employing a combination of quantitative techniques such as budgeting, forecasting, and financial analysis, alongside qualitative approaches like strategic planning and risk management, enables companies to make informed decisions and optimize their financial resources. failure to effectively integrate these methods can result in suboptimal capital allocation, increased financial risk, and diminished overall performance. the purpose of this study is to analyze and develop scientific recommendations on the effective application of financial management methods in companies. by evaluating current practices and innovations in financial management, the research aims to identify the most impactful tools and strategies that drive operational efficiency and financial stability. ultimately, this study underscores the critical importance of systematically applying robust financial management methods to enhance decision-making processes, improve resource utilization, and support long-term organizational success. the scientific essence of the research. the effective use of financial management methods in companies is a critical factor that determines the sustainability, growth, and competitive advantage of firms in dynamic economic environments. financial management encompasses the planning, organizing, directing, and controlling of financial activities, such as procurement and utilization of funds, aimed at maximizing shareholder value and ensuring optimal resource allocation[6]. one of the fundamental principles of financial management is capital budgeting, which involves evaluating investment opportunities through methods such as net present value (npv), internal rate of return (irr), and payback period analysis [7]. these tools allow companies to select projects that maximize returns and align with strategic goals. moreover, companies must adopt robust working capital management practices, which ensure sufficient liquidity for daily operations while minimizing costs related to holding excessive inventory or receivables [8]. risk management is another essential dimension of financial management, whereby firms identify, assess, and mitigate financial risks through hedging, diversification, and insurance mechanisms [9]. efficient risk management safeguards companies against market volatility and financial distress, thereby stabilizing cash flows and protecting shareholder interests. furthermore, companies benefit from the strategic use of financial leverage, balancing debt and equity to optimize the cost of capital and increase returns on equity without exposing the firm to excessive american journal of business management, economics and banking volume 37 june2025 p a g e | 133 www.americanjournal.org financial risk [10]. however, an overreliance on debt can increase bankruptcy risk, emphasizing the importance of prudent capital structure decisions. advancements in financial technology (fintech) have also enhanced the effectiveness of financial management by automating financial processes, improving real-time financial analysis, and enabling data-driven decision-making[11]. companies that integrate innovative financial management software can increase accuracy, reduce errors, and respond quickly to changing market conditions. lastly, sound corporate governance practices reinforce effective financial management by ensuring transparency, accountability, and alignment of management incentives with shareholder value creation [12, 13, 14, 15]. this creates an environment where financial decisions are made in the best interest of all stakeholders, contributing to sustainable company growth. the integration of comprehensive financial management methods—spanning capital budgeting, working capital optimization, risk management, capital structure decisions, technological adoption, and corporate governance—is pivotal for companies aiming to maximize efficiency, profitability, and long-term viability in competitive markets. research methods scientifically, there are several research methods in the article while analyzing the effective use of financial management methods in companies. it can be seen that induction, deduction, comparative analysis, trend analysis, abstract, and other methods are used in the research. the inductive method helps to identify general patterns in financial decision-making based on specific company practices, while the deductive method is used to verify these patterns against theoretical models. comparative analysis allows the assessment of different financial strategies applied in various companies and sectors. trend analysis helps to reveal changes in financial efficiency and resource utilization over time. abstract methods are used to generalize and structure complex financial management processes. these methods collectively support a comprehensive and systematic approach to evaluating financial management practices in corporate environments. analysis and results in the context of increasing globalization, volatile financial markets, and stricter fiscal regulation, companies must not only employ but effectively utilize advanced financial management methods to remain competitive and financially sustainable. properly implemented, these methods serve as tools for optimal resource allocation, risk mitigation, and strategic decision-making. this section analyzes the efficacy of various financial management techniques across firms of different sizes and sectors, highlighting best practices and quantifying their impact on financial performance. effective financial management involves the systematic application of financial tools and techniques to achieve the following goals: maximize shareholder value ensure liquidity and solvency improve capital structure and minimize cost of capital enhance financial planning and control systems methods such as budgetary control, financial ratio analysis, capital budgeting (npv, irr), working capital optimization, cost-volume-profit (cvp) analysis, and sensitivity analysis form the core toolkit for financial managers. american journal of business management, economics and banking volume 37 june2025 p a g e | 134 www.americanjournal.org an empirical survey was conducted on 120 companies from the manufacturing, retail, services, and it sectors. respondents were categorized based on the level of use of financial management methods: group a: systematic and integrated use of methods group b: occasional or partial use group c: minimal or no use fig. 1. adoption level of financial management methods figure 1 presents the adoption levels of financial management methods across companies, categorized into three groups. the largest segment (45%) follows a selective or reactive approach (group b), indicating inconsistent application of financial practices. systematic and strategic users (group a) account for 35%, reflecting a proactive and structured financial management approach. meanwhile, 20% of companies (group c) exhibit minimal use or rely heavily on intuition, suggesting limited formal financial planning. the data highlights significant variability in financial discipline, with many companies yet to adopt fully strategic practices. to quantify effectiveness, three key financial metrics were compared across the groups: return on assets (roa) – measures asset utilization current ratio – indicates liquidity position net profit margin – captures profitability 42 54 24 35% 45% 20% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 10 20 30 40 50 60 systematic and strategic application(a) selective or reactive usage(b) minimal use or reliance on intuition© number of companies percentage american journal of business management, economics and banking volume 37 june2025 p a g e | 135 www.americanjournal.org fig 2. financial performance by use of financial management methods figure 2 illustrates the relationship between the use of financial management methods and financial performance. companies in group a, which apply systematic and strategic methods, show the strongest performance, with the highest return on assets (12.3%), current ratio (1.8), and net profit margin (11.5%). group b, with selective or reactive usage, performs moderately across all indicators. in contrast, group c, which minimally uses formal methods or relies on intuition, records the weakest financial outcomes, including a low roa (4.2%) and poor liquidity (current ratio of 0.9). this data clearly suggests that disciplined financial management is linked to better financial health and profitability. the results clearly indicate that firms in group a, which consistently apply structured financial methods, outperform others across all major indicators. notably, their liquidity and profitability metrics are significantly stronger, validating the strategic role of financial tools. financial methods most widely used the following table summarizes the most commonly employed financial management techniques across the surveyed companies and their reported effectiveness. table 1 common financial management methods and their perceived effectiveness method usage rate (%) effectiveness (1–10 scale) budgeting and forecasting 87% 8.5 financial ratio analysis 78% 8.2 capital budgeting (npv, irr) 65% 7.9 working capital management 72% 8.3 break-even/cvp analysis 54% 7.2 scenario and sensitivity analysis 41% 7.5 0.00% 20.00% 40.00% 60.00% 80.00%100.00%120.00%140.00%160.00%180.00% return on assets (roa) current ratio net profit margin financial performance by use of financial management methods group c group b group a american journal of business management, economics and banking volume 37 june2025 p a g e | 136 www.americanjournal.org table 1 highlights common financial management methods along with their usage rates and perceived effectiveness. budgeting and forecasting is the most widely used method (87%) and also rated highest in effectiveness (8.5), reflecting its central role in financial planning. financial ratio analysis and working capital management are also commonly used (78% and 72%, respectively) and rated highly for effectiveness (8.2 and 8.3). capital budgeting techniques like npv and irr are used by 65% of companies, with a solid effectiveness score of 7.9. less frequently used methods such as breakeven/cost-volume-profit (cvp) analysis and scenario/sensitivity analysis have lower usage rates (54% and 41%), though still show moderate perceived value. this suggests that while companies recognize the effectiveness of various tools, adoption varies depending on complexity and organizational capacity. while budgeting, forecasting, and working capital control remain dominant, there is an increasing recognition of the value of dynamic tools such as scenario planning—especially in uncertain macroeconomic conditions. key findings and strategic implications structured use of financial methods leads to measurable financial benefits, especially in liquidity, efficiency, and profit margins. firms that underutilize these methods tend to suffer from ineffective capital allocation, weaker planning discipline, and lower profitability. managerial training, digitization of financial processes, and strategic cfo leadership are necessary to elevate method adoption from routine use to strategic application. the effective use of financial management methods is not solely a matter of technical proficiency—it reflects the company’s financial culture and strategic maturity. organizations that integrate these tools into decision-making frameworks, rather than treating them as compliance instruments, gain a competitive edge in volatile markets. to fully capitalize on financial management techniques, companies must invest in data systems, skilled personnel, and continuous process improvement, transforming the finance function from a transactional center to a strategic engine for value creation. conclusions and suggestions at present, the effective use of financial management methods in companies is critical to enhancing their operational efficiency, competitiveness, and sustainable growth. companies face growing demands to optimize their capital structure, manage risks prudently, and ensure transparent financial reporting. the adoption of modern financial management techniques not only supports internal decision-making but also increases investor confidence and facilitates access to external financing sources. therefore, ensuring the implementation of effective financial management practices is a strategic priority for both corporate management and policymakers. based on the above scientific research and analysis, the following recommendations are proposed: promote the adoption of advanced financial management tools and technologies that enable more accurate forecasting, budgeting, and cost control, thereby improving overall financial performance. enhance training programs to increase the financial literacy and competency of company managers and financial specialists, ensuring that they can effectively apply financial methods aligned with corporate goals. american journal of business management, economics and banking volume 37 june2025 p a g e | 137 www.americanjournal.org encourage transparency and regular disclosure of financial information, fostering trust among stakeholders and facilitating better evaluation of company performance. simplify regulatory requirements related to financial reporting and compliance, reducing administrative burdens and allowing companies to focus resources on strategic financial management. strengthen internal control systems and audit mechanisms to monitor the effective use of financial resources and prevent financial mismanagement or fraud. facilitate easier access to diverse financing sources, including debt and equity markets, through streamlined procedures and support for professional intermediaries. promote a culture of financial discipline and accountability within companies, ensuring that financial management methods contribute to long-term value creation rather than short-term gains. by implementing these recommendations, companies can significantly improve the efficiency and effectiveness of their financial management, contributing to stronger corporate governance and sustainable economic development. references 1. international monetary fund. (2022). strategic financial management in corporations. 2. world bank. (2023). financial innovation for emerging markets. 3. oecd. (2021). financial structures and corporate value 4. asian development bank. (2022). corporate finance efficiency in asia 5. international finance corporation. (2021). human capital and financial competency in emerging firms 6. brigham, e.f., & ehrhardt, m.c. (2013). financial management: theory & practice. cengage learning. 7. ross, s.a., westerfield, r.w., & jaffe, j. (2019). corporate finance. mcgraw-hill education. 8. gitman, l.j. (2018). principles of managerial finance. pearson education. 9. hull, j.c. (2017). risk management and financial institutions. wiley. 10. modigliani, f., & miller, m.h. (1958). “the cost of capital, corporation finance and the theory of investment.” american economic review, 48(3), 261–297. 11. puschmann, t. (2017). “fintech.” business & information systems engineering, 59(1), 69–76. 12. shleifer, a., & vishny, r.w. (1997). “a survey of corporate governance.” the journal of finance, 52(2), 737–783. 13. каримов а. и. развитие рынка ценных бумаг за счет привлечения свободных денежных средств населения //экономика и предпринимательство. – 2020. – №. 11. – с. 1281-1283. 14. karimov a. the process of secondary public offering of stocks in the stock market and its analysis (on the example of “kvarts” jsc) //international finance and accounting. – 2019. – т. 2019. – №. 6. – с. 17. 15. каримов а.и. ўзбекистон қимматли қоғозлар бозорида акцияларнинг оммавий таклифи ва унинг иқтисодий аҳамияти. // бизнес-эксперт. 2020. – №1 (145). – б. 86-90. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 1 www.americanjournal.org development trends in asset operations of commercial banks to‘ychiev otabek shamshievich chief accountant of the business client services and business support group at the tashkent regional main department of “o‘zmilliybank” jsc a b s t r a c t k e y w o r d s this study examines the development trends of commercial banks’ active operations in uzbekistan, with a particular focus on the role of the national bank. the analysis highlights the growing importance of credit operations, investment activities, and interbank placements in shaping the structure of banking assets. special attention is given to the strategic measures undertaken to enhance human capital, including the establishment of corporate academies and large-scale investments in staff training, which improve institutional efficiency and align banking practices with international standards. commercial banks, active operations, uzbekistan, credit operations, investments, asset structure, financial stability, human capital, corporate academy, innovation, digital banking, it systems, risk management, sustainable growth. introduction in ensuring the stable development of the national economy and the effective functioning of the financial system, commercial banks play a crucial role. the main activities of banks consist of their active and passive operations. among them, active operations—that is, the allocation of bank resources, lending, investment, and other income-generating activities—have a direct impact on the economy. in a market economy, the financial support of enterprises and organizations, the population’s demand for consumer loans, as well as the implementation of investment projects, increasingly necessitate the development of active operations of commercial banks. therefore, the improvement of banks’ activities in this area serves not only the stability of the financial sector but also the competitiveness of the entire economy. according to the data of the central bank of uzbekistan, the volume of commercial banks’ active operations amounted to 769.3 trillion uzs in 2025, which represents a 38.2 percent increase compared to the indicators of 2023. this growth is primarily explained by the expansion of lending activities, the financing of investment projects, and the rising demand for financial resources from both households and business entities. such a dynamic increase in active operations demonstrates, on the one hand, the strengthening of stability and the intensification of capital circulation in the national economy, and on the other hand, american journal of business management, economics and banking volume 43 december2025 p a g e | 2 www.americanjournal.org the growing efficiency of financial intermediation. in particular, the expansion of loan portfolios and investment volumes contributes to production processes, the creation of new jobs, and the financing of innovative projects. therefore, the development of commercial banks’ active operations not only consolidates the stability of the banking system but also serves as a crucial factor in enhancing the competitiveness of the national economy and ensuring sustainable economic growth. literature review diamond, d. and dybvig, p. (1983) developed the theory of financial intermediation and liquidity transformation. in their model, banks’ active operations are explained as the transformation of shortterm deposits into long-term loans, thereby supporting economic activity [1]. at the same time, they emphasize that such a structure of assets may expose the banking system to liquidity risks. f. mishkin, in his book the economics of money, banking and financial markets, presents commercial banks’ active operations as a central element of the financial system [2]. according to him, loans, investments, and other assets significantly influence economic stability, yet the risks associated with them require effective management. khanh, h. n. (2024), applying dea and sfa methods to measure banking efficiency, found that the structure of active operations has a significant impact on banks’ profitability [3]. the study highlights that diversification of assets and quality control are important factors in improving banking efficiency. berger and udell analyze the role of commercial banks’ lending activities in financing small and medium-sized enterprises [4]. in their view, lending, as the main component of banks’ active operations, directly contributes to economic growth, though it also carries substantial credit risks. the uzbek researcher yusupov studies commercial banks’ active operations in the context of the national economy and emphasizes the direct impact of loans and investments on gdp growth [5]. he argues that the rapid growth of assets in uzbekistan is closely linked to ongoing economic reforms. in his research, a. qodirov analyzes the volume and structure of commercial banks’ active operations in uzbekistan [6]. he concludes that while the share of loans is very high, the insufficient development of investment operations has led to challenges in the financial market. laeven, l. and levine, r. empirically examine the relationship between banks’ active operations and financial stability [7]. they point out that the size and diversity of assets increase banks’ resilience to financial shocks, though excessive growth may also heighten systemic risks. research methodology this study applies a mixed-method approach to analyze the trends of commercial banks’ active operations in uzbekistan during 2023–2025. quantitative data from the central bank, financial statements are examined to track the dynamics of loans, investments, interbank funds, and client liabilities. comparative trend analysis highlights structural shifts in banks’ asset composition, while descriptive statistics and graphical tools illustrate their impact on financial stability and economic growth. in addition, a review of scholarly works provides a theoretical basis for interpreting results, enabling the study to emphasize the strategic importance of active operations in supporting reforms and sustainable development. american journal of business management, economics and banking volume 43 december2025 p a g e | 3 www.americanjournal.org analyses and results the concept of a commercial bank first emerged in the early stages of banking, when banks primarily served the sphere of trade. at that time, merchants were the first clients of these banks. later, with the development of industry, credit operations aimed at financing the production process began to take shape [8]. in countries with developed credit systems, modern banking activities encompass a wide range of services for customers. for example, in the united states, the largest commercial and clearing banks provide more than 150 types of services; in the united kingdom, nearly 100 types; and in japan, approximately 300 different banking services. even today, commercial banks have several types of active operations (see figure 1). at the same time, the share of short-term loans has significantly increased. this trend can be explained by the uncertainty and heightened level of risk observed in conditions of economic crisis. essentially, credit represents monetary capital lent in the form of loan capital. it reflects the economic relationship between the borrower and the lender and ensures the transformation of monetary capital into its loan form. moreover, commercial banks not only provide lending but also serve as intermediaries in investment flows, thereby stimulating economic growth. they play a vital role in ensuring liquidity within the financial system and in maintaining the balance between savings and investments. through deposit mobilization, banks accumulate free monetary resources and transform them into productive capital. in addition, commercial banks are central to the implementation of monetary policy, as they regulate the money supply through credit issuance. with the advancement of financial technologies, the scope of banking operations has further expanded, offering digital and innovative services. thus, commercial banks today are considered universal financial institutions that integrate traditional and modern functions in the global economy. figure 1. active operations of commercial banks [9] idle funds loans investments in fixed capital securities leasing operations factoring operations mortgage operations american journal of business management, economics and banking volume 43 december2025 p a g e | 4 www.americanjournal.org fund placement in commercial banks refers to the allocation of financial resources into different active operations that generate income, ensure liquidity, and maintain stability. at the early stage, banks keep a portion of their assets as idle funds, such as reserves in other banks or short-term balances, to cover immediate obligations. this is a crucial element of liquidity management, allowing banks to meet payment demands without disrupting their operations. the most important component of fund placement remains lending activities, which represent the core of commercial banking. loans are extended to other banks through interbank credit and to clients such as households, firms, and government institutions. by transforming short-term deposits into long-term loans, banks support business activities, investment projects, and consumer needs. alongside lending, commercial banks also invest in fixed capital and securities, including bonds and stocks, which serve to diversify their portfolios and create additional sources of profit. in addition to traditional loans and investments, commercial banks engage in specialized operations such as leasing, factoring, and mortgage financing. leasing allows clients to use equipment or property financed by the bank, factoring provides liquidity to businesses by purchasing receivables, and mortgage loans offer long-term financing secured by real estate. together, these operations enhance financial intermediation, expand services for clients, and strengthen banks’ contribution to economic growth. the development of active operations in uzbekistan’s banking sector reflects the country’s broader financial reforms and economic modernization agenda. over the last decade, commercial banks have increasingly shifted from being primarily credit providers to becoming more diversified financial intermediaries. credit placements, however, still constitute the dominant share of active operations, highlighting the central role of banking institutions in financing enterprises, households, and government projects (table 1). in particular, the rapid expansion of lending to small and medium-sized enterprises (smes) has been a critical driver of economic growth and job creation. table 1. structure of active operations of commercial banks in uzbekistan (2023–2025) indicators 2023 2024 2025 amount percentage amount percentage amount percentage funds (cash balance) 19,309.1 3.5 20,201.8 3.1 25,154.3 3.3 loans, net 378,909.2 68.1 457,847.1 70.2 514,692.6 66.9 investments and other securities 31,507.9 5.7 32,548.3 5.0 59,613.9 7.7 funds in the central bank 36,592.1 6.6 33,228.0 5.1 34,511.8 4.5 funds in other banks – nonresidents 37,688.3 6.8 28,862.5 4.4 36,039.3 4.7 funds in other banks – residents 17,423.7 3.1 24,368.5 3.7 29,175.9 3.8 clients’ liabilities on financial instruments 1,606.3 0.3 3,334.0 0.5 432.4 0.1 total assets 556,746.3 100.0 652,157.1 100.0 769,330.4 100.0 american journal of business management, economics and banking volume 43 december2025 p a g e | 5 www.americanjournal.org the data in table 1 illustrate the structure of active operations in uzbekistan’s commercial banks during 2023–2025. it is clear that loans (net) remain the dominant component, making up nearly 68– 70% of total assets. this reflects the traditional role of commercial banks as key providers of credit to enterprises, households, and government projects. however, the slight decline in their share in 2025 (66.9%) suggests that banks are gradually diversifying into other forms of active operations. a notable development is the expansion of investments and other securities, which increased both in absolute value and as a share of total assets, rising from 5.7% in 2023 to 7.7% in 2025. this growth indicates that banks are seeking alternative income streams beyond lending, aligning with global trends of portfolio diversification and enhanced risk management. investment operations have gained momentum, supported by the government’s policy of liberalizing financial markets and attracting both domestic and foreign investors. commercial banks are gradually building portfolios of government securities, corporate bonds, and equity instruments, reflecting a trend toward diversifying income sources and managing risks more effectively. this development also aligns with the central bank of uzbekistan’s efforts to strengthen monetary transmission mechanisms through open market operations. at the same time, funds placed in the central bank and in other resident and non-resident banks fluctuate, reflecting liquidity management strategies and adjustments to international financial cooperation. meanwhile, cash balances remain relatively stable at around 3–3.5%, primarily serving operational liquidity needs. clients’ liabilities on financial instruments, on the other hand, remain marginal and even decline to 0.1% in 2025, showing that such instruments have not yet become a significant element of the uzbek banking system. taken together, the figures demonstrate that while credit operations remain central to banking activity, there is a clear trend toward diversification and modernization of active operations, which contributes to greater resilience and efficiency of the financial system. another significant trend is the growing role of modern financial instruments in active operations. leasing, factoring, and mortgage lending are increasingly important, especially in sectors such as housing, agriculture, and industrial production. these instruments not only support specific industries but also expand access to finance for broader segments of the economy. the rise of mortgage lending, in particular, demonstrates the deepening of long-term financial intermediation and contributes to the development of the real estate market. finally, digital transformation has become a decisive factor shaping active operations in uzbekistan’s banking system. the rapid adoption of fintech solutions, mobile banking, and electronic payment systems has expanded the scope of lending and investment services. this trend enhances financial inclusion and efficiency, allowing banks to reach a larger customer base while reducing transaction costs. taken together, these developments indicate a gradual shift toward a more competitive, resilient, and innovation-driven banking sector in uzbekistan, where active operations will continue to play a central role in sustaining economic growth. table 2 below presents information on the active operations of the national bank of uzbekistan. american journal of business management, economics and banking volume 43 december2025 p a g e | 6 www.americanjournal.org table 2 active operations of the national bank of uzbekistan (billion soums) [10] indicators 2024 2023 2022 2021 2020 cash and cash equivalents 18,422.74 14,377.48 24,446.00 10,185.40 9,379.00 amounts owed by credit institutions 3,565.13 6,943.79 65,287.00 2,681.00 1,851.30 derivative financial assets 259.39 179.04 92.40 – 119.20 loans to customers 102,570.84 94,783.23 86,475.70 72,089.70 63,475.70 invested securities 7,441.67 7,140.85 1,746.80 1,112.90 537.50 investments in joint ventures 268.67 211.50 229.40 345.60 409.70 assets classified as held for sale 438.53 – – – – total 132,966.97 123,635.89 178,277.30 86,414.60 75,772.40 the data demonstrate that loans to customers remain the dominant component of national bank of uzbekistan assets throughout the period. their volume consistently increased from 63.5 trillion soums in 2020 to over 102.5 trillion soums in 2024, highlighting the central role of credit operations in supporting both business activity and household consumption. this steady growth reflects the expanding demand for financing in the real sector of the economy, supported by ongoing economic reforms and government incentives to stimulate lending. in contrast, amounts owed by credit institutions fluctuated sharply, peaking at 65.3 trillion soums in 2022 before falling dramatically to only 3.6 trillion soums in 2024. this volatility may be linked to changes in interbank relations, short-term liquidity needs, and regulatory adjustments. meanwhile, investments in securities show remarkable growth in recent years, rising from only 0.54 trillion soums in 2020 to 7.44 trillion soums in 2024. this indicates a diversification trend, where banks are increasingly using financial markets as an additional source of income and risk management. other categories, such as cash and cash equivalents and investments in joint ventures, remained relatively stable but with gradual increases, serving as liquidity reserves and long-term equity participation, respectively. a new category — assets classified as held for sale — appeared in 2024, suggesting that banks are beginning to optimize their balance sheets by disposing of non-core assets. overall, the structure of assets shows that while lending continues to dominate, uzbekistan’s banking sector is moving toward more diversified and market-oriented active operations. in order to further expand active operations within commercial banks, the national bank of uzbekistan has placed particular emphasis on strengthening human capital within its sustainable development strategy. through the establishment of a corporate academy, opportunities have been created to master the most advanced knowledge in the banking sector. by engaging leading experts, the academy ensures a continuous learning process that equips bank employees with competencies aligned not only with national requirements but also with international standards. moreover, the allocation of approximately 500 billion soums annually in additional investments in human resources highlights that personnel development is not merely an operational need but a strategic priority. this investment approach positions the national bank as a competitive and innovative financial institution within the domestic market, while also reinforcing its ability to integrate into the global financial system. at the same time, the national bank is striving to improve service quality by actively adopting technological advancement and advanced analytical tools. the introduction of mobile and web applications under the “milliy 3.0” program significantly broadens access to banking services and american journal of business management, economics and banking volume 43 december2025 p a g e | 7 www.americanjournal.org simplifies customer interactions. in parallel, enhanced risk modeling systems provide greater efficiency in managing credit and investment operations. furthermore, the implementation of modern it architectures such as sap hana, crm, and bpm facilitates optimization of internal processes and accelerates client servicing. as a result, the national bank is not only consolidating its role in traditional banking services but is also emerging as a pioneer in the deployment of innovative financial solutions, thereby contributing to the overall modernization of uzbekistan’s banking sector. conclusion the analysis of commercial banks’ active operations in uzbekistan shows that their development plays a decisive role in ensuring financial stability and promoting sustainable economic growth. credit operations remain the backbone of active operations, while the diversification into investments, interbank placements, and advanced financial instruments has increased in recent years. this structural shift demonstrates not only the growing maturity of the domestic banking system but also the rising demand for more sophisticated financial services in line with global practices. one of the main drivers of progress in uzbekistan’s banking sector is the focus on human capital development. the national bank’s corporate academy and significant investments in staff training have improved operational efficiency by aligning employee skills with both national and international standards. this highlights the strong link between knowledge, innovation, and banking performance. at the same time, the integration of modern technologies—including digital platforms like “milliy 3.0,” advanced it systems, and risk assessment models—has accelerated the transition to digital banking. these tools expand customer access, improve service quality, and reduce systemic risks, allowing banks to combine traditional lending functions with innovative solutions to remain competitive. in conclusion, the trajectory of active operations in uzbekistan’s commercial banks suggests a sustainable and innovation-driven growth model. the combination of human capital investment, digital transformation, and diversification of asset structures positions the banking sector as a key driver of economic modernization. if sustained, these reforms will not only consolidate domestic financial stability but also enhance the international competitiveness of uzbekistan’s banking institutions. ultimately, the case of the national bank demonstrates that a forward-looking strategy centered on innovation and professionalism is essential for shaping the future of active operations in the country. references 1. diamond, d. w., & dybvig, p. h. (1983). bank runs, deposit insurance, and liquidity. journal of political economy, 91(3), 401–419. https://doi.org/10.1086/261155 2. mishkin, f. s. (2019). the economics of money, banking, and financial markets (12th ed.). pearson. 3. khanh, h. n. (2024). measuring bank efficiency: evidence from frontier analysis methods. journal of banking and finance studies, 45(2), 78–95. 4. berger, a. n., & udell, g. f. (2004). the institutional memory hypothesis and the procyclicality of bank lending behavior. journal of financial intermediation, 13(4), 458–495. https://doi.org/10.1016/j.jfi.2004.06.001 5. yusupov, b. (2022). the impact of commercial banks’ active operations on economic growth: the experience of uzbekistan. economics and finance, 3(2), 55–67. american journal of business management, economics and banking volume 43 december2025 p a g e | 8 www.americanjournal.org 6. qodirov, a. (2021). active operations of commercial banks in uzbekistan: analysis and prospects. journal of financial research, 2(1), 33–45. 7. laeven, l., & levine, r. (2009). bank governance, regulation and risk taking. journal of financial economics, 93(2), 259–275. https://doi.org/10.1016/j.jfineco.2008.09.003 8. тавасиев, а.в. банковское дело [текст]: управление и технологии: учеб. пособие / а.в. тавасиев. м.: финансы и статистика, 2009. 460 с. 9. banking: a textbook / i. r. toymukhamedov. — tashkent: publishing house of the literature fund of the writers’ union of uzbekistan, 2005. — 144 p. 10. www.cbu.uz – official website of the central bank of uzbekistan. 11. www.nbu.uz – official website of the national bank of uzbekistan. https://doi.org/10.1016/j.jfineco.2008.09.003 http://www.cbu.uz/ http://www.nbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 103 www.americanjournal.org theoretical views on microcredit and trends in their development dusbayev utkir khidirovich associate professor of tashkent state university of economics, phd a b s t r a c t k e y w o r d s the article examines theoretical views on microcrediting and their development trends, practice and specific aspects of microcrediting. based on the results of the study, the positive and negative aspects of microcrediting were identified, and appropriate developments were formed for its application in credit organizations in uzbekistan. also, the article analyzes the researches, scientific works and economic literature of foreign and local scientists on the topic. introduction global economic changes occurring in the world, sharp fluctuations in international financial and commodity markets, inflationary expectations and price instability, as a result of the growth of income of low-income segments of the population and the limitation of access to financial services, create the need to increase the popularity of microfinance services, reduce the cost of services, and expand the supply of inclusive microfinance products. according to the world bank, “although global economic growth is expected to be 2.7 percent in 2025-2026, this growth rate is lower than the pre-pandemic period and is not sufficient for long-term sustainable development. factors such as changes in trade policy, inflation, high debt, and low investment are limiting global economic growth. for developing countries, this growth rate is insufficient to reduce poverty and ensure sustainable development”1. microfinance organizations are not considered credit organizations, that is, full-fledged banking institutions, but their activities have similarities with those of banks. if we pay attention to the stages of creation and development of microfinance organizations, the following can be cited as the main reasons that influenced these processes: meeting the needs of individuals who do not have the opportunity to directly apply to traditional banks to obtain small microloans; offering microfinance services to the population living in remote areas of the country; issuance of microloans to individuals who do not have a credit history; the process of processing loan documents and the limited number of documents in relation to commercial banks; 1 global economic prospects, january 2025 / the world bank. internet: www.worldbank.org american journal of business management, economics and banking volume 36 may2025 p a g e | 104 www.americanjournal.org such aspects as strengthening competition in the financial services market and expanding the range of services, improving quality and shortening the processing time of documents. if we pay attention to the history and processes of development of microfinance organizations, we can see that this process does not have a very deep history. more specifically, microcredit organizations began to be formed in the last fourth stage of the 20th century. during this period, microfinance organizations first appeared in the practice of developing countries such as india, bangladesh, malaysia, indonesia, and brazil2. as a result of studies and conducted research, it became known that in almost all the work carried out on microfinance organizations, their activities and processes related to their functioning, the founder of the microfinance organization is recognized as the bangladeshi economist and entrepreneur muhammad yunus. muhammad yunus' contribution to the development of microfinance organizations was that he provided a small amount of financial resources to the financially disadvantaged segment of the population for business development, where one of the main conditions for the provision of this amount was that the given amount was prohibited from being spent on consumption, and this amount was mandatory for business development. as a result of the successful development of muhammad yunus's program in bangladesh, which supported the financially poor segments of the population based on microfinancing, “gramin bank” (grameen bank of bangladesh) was created in the future. this bank is the first in the world to provide microfinance services and continues to operate successfully to this day. however, the fact that microcredit organizations were initially opened by muhammad yunus is not without some considerations. for example, the emergence of these financial institutions is facilitated by the fact that when poor entrepreneurs apply to the bank to establish production, the interest rate on the loan offered by the bank is almost half of the earned profit. then, after receiving a refusal from local banks to reduce the interest rate on the loan, he decided to finance this production process at the expense of familiar entrepreneurs and his own capital. in the future, this same female entrepreneur will provide short-term loans (credits) to several female entrepreneurs, contributing to the development of their activities. women entrepreneurs who took out loans will repay the borrowed amount in full within a short period. thus, the aforementioned gramin bank was established and began serving more than 3.5 million clients in a short period. however, this does not mean that the microfinance organization was first opened in bangladesh. because financial institutions operating on the same principles were established in europe much earlier, that is, in the 16th century. in particular, in the netherlands, the “bank of the poor”, which serves the poor, was founded in 1618. in the 18th century, some charitable associations were founded in ireland, which later specialized in lending. such credit unions also operated on the principle of collective repayment in cases where the borrower was unable to repay the debt. these associations, which opened in europe in the 19th century, later became known as loan funds, which collected interest on loans and attracted funds in deposits. their number in the 1840s exceeded 300, of which more than 20 percent were established and operated at the initiative of irish families. these funds were subsequently closed due to excessive interest rates. historical sources indicate that the first savings banks appeared in hamburg in 1801 under the influence of the irish, and these banks, along with microloans, also accepted savings. in germany, between 1885 2 shahriar a. z. m., schwarz s., newman a. profit orientation of microfinance institutions and provision of financial capital to business start-ups. international small business journal. 2016;34(4):532–552. doi: 10.1177/0266242615570401 american journal of business management, economics and banking volume 36 may2025 p a g e | 105 www.americanjournal.org and 1914, the number of agricultural corporations established based on the principle of microcredit organizations increased from 245 to 15,000, operating as agricultural prototypes without changing the principles of their activities. according to some sources, microfinance organizations currently account for 50% of bank assets in germany. analysis and studies show that microfinance organizations established in most european countries are created by women (female entrepreneurs), and in most cases, there is a view that this business is characteristic of women. in the usa, savings institutions, credit unions, and financial companies providing financial services, reflecting the characteristics of commercial banks, began to emerge in the 1800s. savings institutions, as financial institutions competing with commercial banks, are institutions that provide microfinance products to individuals on simple, short, and preferential terms. even today, these institutions practically perform a number of operations in the activities of commercial banks. issues mortgage loans to the population and provides other financial services to households. in the usa, credit unions are organizations established by depositors as non-commercial deposit institutions and operating on the basis of mutual agreement. historically, they mainly focused on placing funds formed by depositors in consumer loans. savings institutions and credit unions are commonly collectively referred to as thriffs (economy). the main function of financial companies is to provide microloans to the population and entrepreneurs. financial companies provide these services in the form of consumer credit, production credit, and mortgage financing. fund institutions, in turn, are divided into two groups. the first group includes savings associations, and the second group includes savings banks. while microfinance organizations developed in the usa from 1800, their number exceeded 750 in the 1880s. in 1986-1992, as a result of the bankruptcy of most of them, about 100 remained, while they merged with each other and began new activities. analysis and results the results of the research show that microfinance organizations were formed and developed on the continents and in countries of the world under the influence of specific features and various factors. based on the conducted research and studies, we will try to express the process of their organization and development in the following basic principles. microloans provide an opportunity to reduce poverty in poor countries, and in developed and developing countries to increase profits and create additional jobs. indeed, in many countries of the world, the main segments of the population did not have sufficient opportunities to meet their demand for financial resources and free access to financial services, and this process was a powerful impetus for the creation and development of microfinance organizations. in developed countries, it can be recognized that it was created for the purpose of efficient use of financial resources, creation of additional jobs, and profit. reducing the country's population from poverty and increasing their solvency. it should be noted that the economic insolvency and weakness of the country's population's solvency lead to a number of problematic situations. in particular, the development of social problems in the country, such as crime, robbery, destruction, and the stable growth of the country's economy at the macroeconomic level create contradictions. in addition, low solvency of the population causes a problem associated with a decrease in aggregate demand and its vulnerability. this, in turn, leads to the balanced development of the american journal of business management, economics and banking volume 36 may2025 p a g e | 106 www.americanjournal.org country's production and, ultimately, to problems with the state of infrastructure in the regions. microfinance organizations are an important financial mechanism for poverty reduction in the country. an important convenience and advantage of microfinance organizations increases the population's access to financial resources, which in itself allows them to comprehensively eliminate their problems related to financial issues. persons who have received a loan from a microfinance organization in the form of a microloan, firstly, think about the issue of its repayment, and secondly, have the opportunity to improve their lifestyle and increase their financial responsibility. increasing and strengthening the stability of the local financial and credit system and ensuring the strength of the national currency. certainly, microfinance organizations serve as an important financial link in increasing the stability of the country's financial and credit system by attracting temporarily unused funds in the economy on appropriate terms and providing them to persons in need of these funds. in addition, the placement of temporary funds of the population in production based on redistribution, firstly, increases the circulation of the national currency and the volume of local production, and secondly, increases public confidence in the country's financial and credit system, positively affects the strength of the national currency. microfinance organizations do not have the opportunity to implement solutions to large and multifaceted issues. indeed, if we look closely at the purpose of creating microfinance organizations and their activities, they do not have the opportunity to provide large-scale loans for large-scale production and for all purposes. therefore, these financial institutions actively participate in solving pressing socio-economic issues at the micro level. microfinance organizations offer clients relatively expensive microloans. the interest rates on shortterm and short-term microloans issued by microfinance organizations are higher than the interest rates on large loans issued by commercial banks, and if they do not issue microloans at high rates, they will not be able to receive the expected profit, and at the same time, their interest rates will be relatively high so that the issued microloans and accrued payments do not incur losses even if they are not repaid. microcredit organizations are supported by the state indirectly, not directly. since microfinance organizations are in most cases private from the point of view of ownership, they are not supported by cheap and long-term financial resources of the state. in cases where the state supports support and the development of their activities, microfinance organizations may mitigate the requirements for authorized capital and permits for their activities. it should be noted that in international practice, local (municipal) authorities are interested in the creation and development of microfinance organizations and in most cases support them by allocating buildings, creating an acceptable infrastructure, and improving the business environment. because microfinance organizations established in remote regions of the country are a very important financial link in business development, creating additional jobs, and offering local products to the consumer goods market. limited establishment of microfinance organizations. in practice, it can be observed that microfinance organizations are not developed in a balanced manner in all regions of the country, although there are a number of objective and subjective reasons for this. firstly, there is a lack of sufficient infrastructure for the organization, insufficient support from local authorities, and secondly, there is a shortage of specialists with sufficient knowledge, skills, and experience who organize microfinance organizations. transparency of the activities of microfinance organizations and accessibility of information. the transparent organization of the activities of these financial organizations in the market plays an american journal of business management, economics and banking volume 36 may2025 p a g e | 107 www.americanjournal.org important role in attracting investors and depositors to them, as well as in the future decisions of the founders of these organizations. in conclusion, the stages of development and the main principles of the activities of microfinance organizations have their own characteristics, and a number of objective and subjective factors have influenced their organization and operation, and at the same time, these financial institutions are an important financial link of the market economy. references 1. law of the republic of uzbekistan "on non-banking credit organizations and microfinance activities," article 3. (national database of legislation, 21.04.2022, no 03/22/765/0332) 2. yunus muhammad, joli alan. creating a world without poverty. social business in the future of capitalism.-m.:alpina publisher, 2009,-p. 213 3. shadadze n.v. microfinancing abroad: experience in solving social problems // economics. taxes. law. 2017. vol. 10. no 1. pp. 101-109. 4. rakhmanov i.kh. ways to improve microfinance services in the republic of uzbekistan. dissertation for the degree of candidate of economic sciences.-2011. 5. global microfinance market report 2022. 6. https://cbu.uz/-data of the central bank of the republic of uzbekistan american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 121 www.americanjournal.org directions for implementing proactive budgeting in the republic of uzbekistan botirov azamat akhmedovich phd, associate professor of “corporate finance and securities” department, tashkent state university of economics, uzbekistan e-mail: azamat.botirov@tsue.uz a b s t r a c t k e y w o r d s this article studies directions for implementing proactive budgeting in the republic of uzbekistan. measures to be implemented to further improve proactive budgeting practices, additional tasks assigned to the accounts chamber and the state financial control inspectorate in proactive budgeting are analyzed. scientific conclusions and recommendations are presented on the basis of analyses. budget, budgeting, proactive budgeting, gdp, local budget, financing, projects. introduction the deepening of the reforms being carried out in uzbekistan requires further increasing the role of the state budget in organizing the treasury execution, expanding its rights in the financial and budgetary sphere and strengthening its financial base. as our president noted, “as a result of systemic changes in the economy, the share of industry in the gdp is expected to increase from 35 percent to 37 percent this year. however, in some cities and districts, insufficient attention is being paid to this extremely important issue. as a result, in 27 districts of the republic, the share of industry does not even reach 1 percent of the regional indicator. therefore, it is necessary to develop mediumand long-term programs for the development of industry in each district and city” [1]. therefore, the issues of developing proactive budgeting mechanisms for the effective use of state budget funds in the development of regions are urgent. literature review as is known, an effectively functioning state is necessary for the normal socio-economic and political development of each country. the state performs the tasks of producing necessary goods and services for society and citizens of the country, creating the legal basis of regulatory and institutional structures for the effective functioning of the economy and social networks, and thereby creating material and other conditions for the life and work of its citizens. based on these tasks. the main functions of the state are: 1. developing, adopting, implementing and improving legal documents that form the institutional foundations of a market economy; american journal of business management, economics and banking volume 36 may2025 p a g e | 122 www.americanjournal.org 2. ensuring macroeconomic and socio-political stability, effective management and regulation of the economy; 3. financing basic social services, providing social support to the needy segments of the population; 4. managing and regulating the processes of integration into the world economy, while protecting national interests; 5. ensuring public administration, defense and national security of the country; 6. implementation of measures related to nature protection and ensuring ecological balance, etc. it should be noted that with the increase in the country's economic potential, the power of the state, its ability to expand its functions, increases. in order for the state to successfully perform its functions, as well as to implement strategic goals that are relevant at each stage of development, it is an objective necessity for it to accumulate a certain part of the financial resources created in the country. it is precisely the existence of this objective necessity that requires the existence and functioning of the state budget. economists of different periods and economic schools of different directions have approached the clarification of the content of the state budget in different ways. when clarifying the socio-economic essence of the budget, it is important to consider its: as an economic category; as a material concept; as a legal category. as an economic category, the state budget is a system of monetary relations arising from the redistribution of national income (partly national wealth) created in the country between the state and legal entities and individuals, as a result of which a monetary fund the budget is formed and used for the purpose intended to finance the economy, socio-cultural sectors, defense and state administration needs. as a material concept, the state budget is a centralized fund of monetary funds that ensures the activities of the central government and local authorities of the appropriate level, designed to fulfill their political, economic, social and environmental tasks. the state budget is a centralized fund of state monetary funds (including funds from state trust funds), which provides for the sources of income and the amount of receipts from them, as well as the directions and amount of spending of funds allocated for specific purposes during the financial year. as a legal category, the state budget is a basic financial plan, a legal document, developed and approved in accordance with the established procedure by the central and relevant local authorities and executive bodies, providing for the formation, distribution and targeted use of a centralized fund of funds. as a legal document, it is compiled, reviewed, approved and executed for each fiscal year (in the republic of uzbekistan, the fiscal year corresponds to the calendar year, but in countries around the world, in accordance with their traditions and important, decisive historical dates in the life of the country, the budget year may not correspond to the calendar year) in the manner and within the terms established by the legal and regulatory documents on the state budget. it should be especially noted that with the increase in the country's economic potential, the power of the state and its ability to expand its functions increase. in order for the state to successfully perform its functions, as well as to implement strategic goals that are relevant at each stage of development, it is an objective necessity for it to accumulate in its hands a certain part of the financial resources created american journal of business management, economics and banking volume 36 may2025 p a g e | 123 www.americanjournal.org in the country. it is precisely the existence of this objective necessity that requires the existence and functioning of the state budget. the state budget is considered the leading link in the state finance system and the entire financial system. the state budget has a number of specific features, which are as follows: • firstly, the state budget is an independent economic category, manifesting itself through distribution and control functions; • secondly, by its socio-economic nature, the state budget serves as a tool (instrument) for redistributing national income and national wealth; • thirdly, by its material composition, the state budget serves as the main centralized monetary fund of the country; • fourthly, from the point of view of the legal definition of its financial basis, the state budget is the main financial plan of the country, which has legal force; • fifthly, the state budget is an element of labor force creation, since labor force creation largely depends on education, healthcare, social insurance and pension provision expenses. it should be noted that assessing the capabilities of local budgets directly requires determining the fundamental essence of this concept. an analysis of the numerous definitions given to the concepts of “regional economy”, “local budget capabilities” shows that in most cases each definition is formulated in order to confirm certain ideas and views of its author, emphasizing a separate aspect of many aspects related to these concepts. however, the definition of scientific concepts should cover important aspects of processes and phenomena, be clear and concise. some economists interpret the concepts of “regional financial capabilities” and “local financial capabilities” in the same sense, on the one hand, and the concepts of “financial resources” and “financial capabilities” in the same sense, on the other hand [2]. planning budget expenditures based on single state (socially acceptable and scientifically based) standards without linking them to real revenues of the local budget currently leads to a significant excess of the budget’s expenditure over the revenue part. therefore, it should be noted that the application of such unified state norms in the current conditions means a conscious reduction of local budget expenditures on expenditure items, which leads to unjustified sharp fluctuations in the level of financing for one or another item in expenditure groups. as a result of this practice, disagreements and imbalances remain between local financial authorities and the ministry of finance regarding the forecasting of local budget expenditures. in addition, socially acceptable and justified state norms of budget expenditures require the legal approval of certain social standards (consumption budget, subsistence minimum, etc.), which once again confirms the limited possibilities of applying unified state norms in the near future [3]. analysis and results the launch of the mechanism for involving citizens in the budget process serves as a special tool for finding solutions to the problems that plague the population in the regions and for making the public a participant in the budget process. the development strategy of new uzbekistan for 2022-2026 notes the need to consistently continue the work being carried out to direct part of the budget funds based on public opinion within the framework of the state program for implementation in the “year of attention to humanity and quality education”, to increase the activity of citizens in the initiative budgeting processes, and to further improve this process, taking into account the experience accumulated over the past period. therefore, the resolution of the president of the republic of uzbekistan no. pd-117 american journal of business management, economics and banking volume 36 may2025 p a g e | 124 www.americanjournal.org dated 10.04.2023 “on further improving the practice of initiative budgeting and measures to support active neighborhoods” establishes the following (figure 1). in particular, it is noted that 1,666 projects worth 1.5 trillion soums were awarded during the initiative budgeting process held within the first season of 2023, an additional 1.3 trillion soums were allocated for the implementation of 1,309 projects that received more than 2,000 votes each during the initiative budgeting processes held within the first season of 2023, but were not recognized as winners, and the additional funds will be allocated from the funds planned for 2023 within the framework of the "prosperous village" and "prosperous mahalla" programs, etc. figure 1. measures to be implemented to further improve proactive budgeting practices [4] in order to further improve the practice of initiative budgeting and effectively organize support for active neighborhoods, the accounts chamber and the state financial control inspectorate have been assigned a number of additional tasks within the framework of initiative budgeting processes, including monitoring the timely and complete transfer of funds to citizens' initiative funds, conducting on-site inspections of the work being carried out within all projects at least once a month and constantly monitoring them, and conducting control measurements at the end of construction and repair projects (figure 2). during the first season of 2023, within the framework of participatory budgeting, a total of 1,666 projects valued at 1.5 trillion soums were accepted for informational purposes. according to the ministry of economy and finance, during the first season of 2023, more than 2,000 projects in the participatory budgeting process received over 2,000 votes each. however, only 1,309 projects were selected for implementation. an additional 1.3 trillion soums will be allocated to expand the number of projects executed. the additionally allocated funds will be redirected from the resources initially planned for the “prosperous village” and “prosperous mahalla” programs in 2023. american journal of business management, economics and banking volume 36 may2025 p a g e | 125 www.americanjournal.org figure 2. additional tasks assigned to the accounts chamber and the state financial control inspectorate in proactive budgeting [4] within the framework of the initiative budgeting process, it is prohibited for the heads of budget organizations to instruct employees to collect votes. in this case, forcing them to collect votes is equated with engaging employees of the relevant organization in forced labor. the determination of the winning neighborhoods (villages) is carried out by one of the following methods, announced to the general public before the start of the voting process: based on the number of votes cast for the project package, using a correction coefficient for neighborhoods (villages) with a small population [5]. according to the results of the voting process, the project package with the highest indicator within the funds formed in the fund for each district (city) is recognized as the winner. in this case, the project package must collect at least 100 votes to be recognized as the winner. in the event of an equal number of votes, the project package that first recorded the highest indicator among the neighborhoods (villages) with equal votes will be recognized as the winner. the activities included in the project package for the winning neighborhoods (villages) will be implemented, which have received more than 50 percent of the votes cast for the relevant project package. in this case, citizens will have to choose activities from the project package that are actually a real problem for the neighborhood (village). the project packages formed for neighborhoods (villages) that did not receive enough votes and were not recognized as winners will be transferred to the “archive” status. this project package may be revoting by the neighborhood chairmen in future processes. the initial amount of funds required for the implementation of the activities recognized as winners will be determined based on the conclusions of the sectoral enterprises, as appropriate, according to the design and estimate documentation. after the event is declared a winner, project and estimate documents for its implementation are developed and the final cost of the event is specified. based on the initial cost of the winning project package, it is not allowed to reduce the volume of work (goods, services) carried out within the framework of the event [5]. control the timely and complete transfer of funds to citizens' initiative funds; conduct on-site inspections of all projects at least once a month and monitor them continuously; conducting construction control measurements at the end of construction and renovation projects. american journal of business management, economics and banking volume 36 may2025 p a g e | 126 www.americanjournal.org if the final cost of the event is higher than the initial cost of the event according to the project and estimate documents, in these cases the additional funds required for the implementation of the event will be covered by the funds saved from other events in the relevant project package or the funds available in the fund, as well as by the decision of the jokargi kenes of the republic of karakalpakstan, regional and tashkent city councils of people's deputies, respectively, from the republican budget of the republic of karakalpakstan, local budgets of regions and tashkent city. conclusions when studying the directions of implementing initiative budgeting in the republic of uzbekistan, it is necessary to pay attention to ensuring openness and transparency in organizing the initiative budgeting process, increasing the volume of financing resources, and preventing artificially increasing the number of votes during the voting process. references 1. o‘zbekiston respublikasi prezidenti sh.mirziyoyevning 2018 yil 28 dekabrdagi oliy majlisga murojaatnomasidagi nutqidan. “ xalq so‘zi” gazetasining 29 dekabr 2018 yil, n 270-soni 2. zaripo и i.r., xafizova v.r. баланс финонсовых ресурсов территорий. 2-изд. уфа:гп принт, 2001, 86-90 б. 3. lucie sedmihradska. budget transparency in czech local government. 16th annual conference on finance and accounting, acfa prague 2015, 29th may 2015.www.scopus.uz 4. resolution of the president of the republic of uzbekistan dated 10.04.2023 no. pd-117 "on measures to further improve the practice of proactive budgeting and support active neighborhoods". https://lex.uz/uz/docs/-6429853 5. resolution of the cabinet of ministers of the republic of uzbekistan dated 03.05.2023 no. 183 on approval of the regulation on the procedure for implementing the "prosperous village" and "prosperous mahalla" programs through proactive budgeting processes based on public opinion, https://lex.uz/uz/docs/-6456544#-6457050. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 74 www.americanjournal.org impact of commercial banks' credit operations on bank liquidity meyliev jasur zulfikarovich independent researcher of banking and finance academy a b s t r a c t k e y w o r d s lending is the primary activity of commercial banks. as of november 1, 2025, the share of loans in total assets of commercial banks in the republic of uzbekistan amounted to 67.6 percentage points. this article examines the types of loans and theoretical approaches to ensuring bank liquidity amid the ongoing expansion of lending. existing problems in the industry are identified and solutions are proposed. commercial bank, business entity, credit, liquidity, asset, bank liabilities, deposit, microloan, interest, income, expense. introduction in accordance with the decree of the president of the republic of uzbekistan dated september 1, 2023 no. up-158 "on the strategy" uzbekistan 2030 ", the following urgent tasks have been identified: consistent continuation of transformational and institutional reforms in the economy, ensuring a favorable investment and business climate in the country, implementing a balanced monetary policy, bringing the annual volume of lending in the banking and financial system to 40 billion dollars, increasing the volume of bank deposits by 4 times. [1] in addition, decree no. up-5992 "on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025" provides for the implementation of the following measures to achieve the strategic goals of increasing the financial stability of the banking sector: 1) ensuring moderate lending growth rates and improving the quality of the loan portfolio; 2) improving banking sector oversight and implementing a modern risk management system in banks; 3) ensuring coordinated reform of the banking system and state-owned enterprises in the real sector of the economy, actively participating in the transformation of state-owned enterprises and organizations on a commercial basis, and ensuring the harmonious flow of reforms in the real and financial sectors; 4) increasing minimum capital requirements for banks, including taking into account the accession of the republic of uzbekistan to international economic organizations and the integration of the country's banking system into the international financial system. [2] the above circumstances necessitate scientific and practical research into the sustainability of bank liquidity when improving bank lending practices. for this reason, this research article is relevant. american journal of business management, economics and banking volume 43 december2025 p a g e | 75 www.americanjournal.org literature review on the topic french economist p. dieterlen emphasizes that "liquidity is the total amount of cash currently available and obtainable in the future, exceeding all current needs and obligations, whether immediately or in the short term." [3] indeed, dieterlen's ideas are also applicable to the banking system. properly organizing the allocation of loans by commercial banks proportionate to the terms of their obligations and needs is an important step in ensuring the financial stability and liquidity of the bank. according to t. makshanova, the development of the interbank market facilitates the redistribution of temporarily idle funds between banks and the maintenance of liquidity. the refinancing system for russian commercial banks is also linked to this factor. in this case, the source of replenishment of resources is the central bank of russia, through which the liquidity of the commercial bank is maintained. [4] the opinion of the russian economist is also important for the banking practice of the republic of uzbekistan. this is due to the fact that, according to the central bank of the republic of uzbekistan, in the third quarter of 2025, transactions worth a total of 255.6 trillion soums were conducted on the interbank money market, and the total volume of transactions increased by 19% compared to the second quarter (214.5 trillion soums). increased activity in the interbank money market indicates the development of mechanisms for the redistribution of liquidity in the banking system and increased efficiency of liquidity management. [5] the scientific innovation presented in sh. t. ibodullaev's doctoral dissertation proposes a methodology for "ensuring the competitiveness and liquidity of a commercial bank in the national loan capital market by reducing the level of the reserve for possible loan losses relative to gross loans, ensuring proportionality between the rate of loan growth and the rate of growth of interest income received from them." [6] the scientific innovation proposed by the aforementioned economist is relevant for the banking system of the republic of uzbekistan. currently, the increasing share of problem loans and the reserves allocated for them in the banking system creates a problem of imbalanced liquidity for commercial banks. o. sattarov recognized the improvement of regulatory requirements for the liquidity and capital adequacy of commercial banks and the methodology for calculating liquidity standards and requirements as necessary conditions for ensuring the stability of the banking system of the republic of uzbekistan. [7] o. sattarov's conclusion is of practical significance in terms of ensuring the competitiveness of commercial banks in our country. this is due, firstly, to the introduction of new basel committee requirements on liquidity and capital adequacy for commercial banks (liquidity coverage ratio, net stable funding ratio requirements, regulatory capital adequacy, tier 1 capital adequacy, and tier 1 common capital requirements) into the practice of banking supervision in the republic of uzbekistan. secondly, some basel committee requirements were introduced without sufficient consideration of the current situation of commercial banks in our country. for example, the regulatory requirement for the net stable funding ratio is set at 100%, as stated in the basel committee recommendation. however, due to the serious problem of liquidity risk in large commercial banks in our country, they are experiencing difficulties in complying with this regulatory requirement. american journal of business management, economics and banking volume 43 december2025 p a g e | 76 www.americanjournal.org analysis and results large commercial banks in the republic of uzbekistan are currently taking measures to ensure a balance between their assets and liabilities, as well as to increase the share of loans in bank assets relative to loan income in interest income. this will reduce liquidity risk at banks. transformation risks at a bank are risks arising from the transformation of assets and liabilities, primarily related to maturity mismatches (e.g., short-term deposits funding long-term loans), leading to liquidity and interest rate risks. these risks may also include risks associated with the transition to a new economy (e.g., climate change). these risks affect the bank's profits and capital through adverse changes in interest rates and the inability to meet depositor demands. picture1 shows that loans constituted a high share of assets in the five largest state-owned banks of the republic of uzbekistan during the analyzed period. this figure was 75.0 percentage points at uzmiliya bank, 67.7 at sanoatsqurilyshbank, 67.1 at asaka bank, 62.7 at khalgbank, and 77.2 at agrobank. accordingly, the volume of bank capital and deposits was low. this is a negative situation for bank liquidity. to address these shortcomings, it is necessary to achieve deposit stability by developing securities transactions within the bank's asset structure and increasing the banks' investment attractiveness. picture 1 key indicators of commercial banking activity (billion soums) as of november 1, 2025 [8] picture 1 shows that loans constituted a high share of assets in the five largest state-owned banks of the republic of uzbekistan during the analyzed period. this ratio was 75.0 at uzmiliya bank, 67.7 at sanoatsqurilyshbank, 67.1 at asaka bank, 62.7 at xalqbank, and 77.2 at agrobank. accordingly, the volume of bank capital and deposits was low. this is a negative situation in terms of ensuring bank liquidity. to address these shortcomings, it is necessary to achieve deposit stability by developing securities transactions in the bank's asset structure and increasing the bank's investment attractiveness. 1,37,225 1,04,785 19,635 47,788 98,087 66,395 11,507 26,078 63,208 42,383 8,166 21,253 51,416 32,240 10,305 26,344 1,03,707 80,061 13,718 29,729 0 20,000 40,000 60,000 80,000 1,00,000 1,20,000 1,40,000 1,60,000 assets credit capital deposit uzmilliybank sanoatkurilishbank asaka bank xalq bank agrobank american journal of business management, economics and banking volume 43 december2025 p a g e | 77 www.americanjournal.org according to the recommendations of the international basel committee, a high share of capital in commercial banks' liabilities is considered a positive situation in terms of ensuring financial stability and liquidity. 1-table commercial banks' loan portfolio and the share of problem loans in them. (november 1, 2025) [9] bank`s name loan portfolio (billions of soums) non-performing loans (npl) (billion soums) non-performing loans (%) uzmilliybank 104 785 4 359 4,2 sanoatkurilishbank 66 395 2 212 3,3 asaka bank 42 383 1 993 4,7 xalq bank 32 240 1 133 3,5 agrobank 80 061 2 886 3,6 table 1 shows that uzmilliyabank and asaka bank had a high percentage of non-performing loans during the analyzed period. this is a negative situation for commercial banks' liquidity. according to international standards, the normal level of non-performing loans in a bank's loan portfolio is defined as no more than 3%, and the acceptable level should not exceed 5%. conclusions and suggestions as a result of our study, we reached the following conclusions: *proper organization of loan distribution by commercial banks, proportionate to the maturity of their obligations and needs, is an important step in ensuring bank financial stability and liquidity; *the development of the interbank market facilitates the redistribution of temporarily idle funds among banks, maintaining liquidity; *the share of non-performing loans and the proportion of reserves allocated to them are increasing in the banking system, creating a liquidity imbalance for commercial banks; *the regulatory requirement for the share of net sustainable funding is set at 100%, as stated in the basel committee recommendation. however, due to the serious liquidity risk problem in large commercial banks in our republic, banks are facing difficulties in meeting this regulatory requirement. in addition to these findings, the following scientific proposals for improving bank liquidity were formulated: 1. minimizing liquidity risk in the bank, reducing the share of loans in the asset structure by developing securities transactions. 2. ensuring bank liquidity by increasing the share of term and savings deposits in the bank's liabilities by enhancing the investment attractiveness of commercial banks. references 1. decree of the president of the republic of uzbekistan no. pf-158 dated september 1, 2023, "on the uzbekistan-2030 strategy" // legislative framework, september 12, 2023. 2. decree of the president of the republic of uzbekistan no. pf-5992 dated may 12, 2020, "on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025" // legislative framework, may 13, 2020. american journal of business management, economics and banking volume 43 december2025 p a g e | 78 www.americanjournal.org 3. nevolina e.v. the concept of bank liquidity / e.v. nevolina // refusal and credit. 2007. no. 7. pp. 23-29. 4. makshanova t.v. development of regulatory framework for market derivatives in russia // economy and society. 2013. no. 1 (6). p. 452–458. 5. central bank of the republic of uzbekistan. money market and liquidity review, q3 2025 / www.cbu.uz. 6. sh. t. ibodullaev. doctoral dissertation on "ways to ensuring the competitiveness of commercial banks". tashkent, 2025. 7. sattarov, o. b. "current issues of ensuring the stability of the banking system of the republic of uzbekistan": banking, 2016, no. 9, p. 25. 8. figure compiled by the author based on central bank data. 9. table compiled by the author based on central bank data. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 41 www.americanjournal.org ensuring information security within the bank management system: key strategic approaches kobiljon isroiljonov, student of tashkent international university major: economics phone: +998994616355 e-mail: isroiljonov.k55@gmail.com a b s t r a c t k e y w o r d s the rapid digital transformation of the banking system of the republic of uzbekistan, conditioned by the systemic introduction of innovative information and communication technologies and supported by state strategies, has created a secure, efficient, and modern national payment infrastructure. however, while this kind of transformation increases the efficiency, transparency, and competitiveness of financial operations, it has also given a boost to the demand for relevant advanced information security measures. ensuring the reliability, integrity, and confidentiality of banking data can be reached only via proactive, multilevel approaches that integrate technological innovations, robust cybersecurity frameworks, and effective management of digital risks, which in turn will let the banking sector provide safe, convenient, and high-quality remote financial services both to domestic and international users. digital banking, national payment system, information and communication technologies, electronic payments, remote banking services, information security, cybersecurity, electronic digital signature, banking infrastructure, and protection of financial data. introduction through the systematic and broad introduction of innovative information and communication technologies into the banking system of the republic of uzbekistan, it became possible to establish, in a relatively short period of time, a modern national payment infrastructure. currently, an integrated interbank payment system involving all commercial banks is fully functional, offering reliable mechanisms for cashless settlement at the national level. its operation provides for the high accuracy, transparency, and timeliness of both domestic and international payment transactions and, at the same time, contributes to the effective implementation of monetary and credit policy and the optimization of general cash flow management in the economy. in this regard, the strategic approach of the state leadership is very important. as noted by the president of the republic of uzbekistan sh. mirziyoyev: “whichever sector produces high-value products, we will support that sector first. therefore, we must develop and apply a strategy for sectors that can give a serious impetus to economic development.” he underlined the need to focus on technology-intensive american journal of business management, economics and banking volume 43 december2025 p a g e | 42 www.americanjournal.org and highvalue sectors, such as digital banking, for further development as key drivers of economic modernization and sustainable development. the accelerated digitalization of the banking sector, coupled with consistent government support, not only strengthens the national payment system but also enhances the competitiveness of uzbekistan's financial infrastructure in the global economic environment. the creation of such integrated systems testifies to the country's determination for the formation of an efficient, secure, and innovative banking ecosystem able to meet contemporary international standards. the telecommunications network of the banking system of the republic of uzbekistan has been developed as an integrated complex of closed corporate communication infrastructures of the central bank, commercial banks, and other organizations operating in different sectors of the national economy. basically, the given system relies on the telecommunication capabilities of the main operator "uzbektelecom" jsc, while the channels of communication from other providers are used as auxiliary or backup resources for continuity and stability of processes. basic aims of this banking telecommunication infrastructure are to create a highly reliable and secure transport environment for interbank electronic payment processes, closed virtual corporate networks for protected data exchange, continuous operation of the interbank electronic mail system, and special communication channels allocated in accordance with needs formulated by various network users. all these functions position the telecommunication network as a vital technological backbone that allows conducting financial transactions efficiently, accurately, and securely within the country. one can hardly deny that the financial and banking sector is currently one of the most technically equipped fields when it comes to issues of information security. yet, the rapid and disruptive changes in modern information technologies-to wit, extensive virtualization of data resources, wider utilization of cloud platforms, and expansion of mobile broadband access-significantly reshape the demands for ensuring cybersecurity. in these conditions, participants of the financial market, alongside government bodies, private organizations, and even individual users, need to move toward the use of nextgeneration information protection tools and modern security models. these technological shifts necessitate a proactive approach toward strengthening cybersecurity frameworks, as emerging digital ecosystems introduce new vulnerabilities alongside new opportunities. financial institutions are thus compelled to implement improved security architectures, advanced authentication systems, and comprehensive risk-mitigation mechanisms that can help maintain the integrity, confidentiality, and availability of critical financial data. nowadays, one of the most serious problems in the sphere of information security is the intentional disturbance of automated systems, which process banking data. this problem becomes extremely urgent for those countries whose information and communication infrastructures are highly developed and deeply integrated into economic and social processes. while electronic payment mechanisms, plastic cards, and large computer networks are being developed, they more and more become the object of various types of information attacks and cyber-invasions. in these conditions, when access to a computer connected to the internet is enough to try unauthorized interference in financial processes, this threat becomes substantially broader and more complicated. in such a context, this problem is not only extremely urgent but also remains poorly investigated in contemporary scientific and practical research. nowadays, most commercial banks have established channels for performing remote payment operations. performing financial transactions over the internet has become routine, and clients can pay american journal of business management, economics and banking volume 43 december2025 p a g e | 43 www.americanjournal.org bills, transfer money, or conduct any other bank operations from almost any place in the world. to undertake such operations, they need an apparatus connected to the global network and a digital signature key duly registered with the bank. while these technological conveniences significantly enhance customer experience and operational efficiency, they also raise the stakes in terms of strong authentication, sound cryptographic protection, and close monitoring to prevent unauthorized access and financial fraud. through remote banking services, many advantages are offered to customers, which greatly enhance the efficiency and comfort of financial interactions. • time efficiency: clients can perform all payment operations at any convenient moment, without the need to physically go to bank branches, which drastically reduces time expenditures and raises operational flexibility. • ease of usage. all monetary transactions are performed via personal computer or other electronic devices, and users can manage their accounts from any place that has access to the internet. • high transaction processing speed. remote banking technologies guarantee rapid execution of payment orders, thereby enhancing overall effectiveness concerning financial operations and reducing delays typical for traditional channels of service provision. real-time document status monitoring. your users can keep track of every stage in the processing of their payment documents, thus making it a highly transparent process wherein they can also identify potential issues in real time. • immediate access to account information: customers can have quick access to all detailed data about all movements of funds in their accounts, thus allowing better financial planning, control, and decisionmaking. however, in spite of the significant benefits brought about by remote banking technologies, complete reliance on absolute security provided by electronic means of paying has not been instilled into people. this situation partially arises from frequent and increasingly sophisticated hacker attacks targeting computer networks and digital infrastructures of financial systems. such attacks outline the current drawbacks of information systems and prove that even the most advanced technological solutions need ongoing care and development. within the contemporary digital landscape, the eds operates as a basic means of security that serves to guarantee authenticity and integrity for banking transactions. every eds key is legally and functionally equal to a manually written signature by an authorized person, hence being a secure means of confirmation of identity in the electronic environment. eds considerably increases the advantages of electronic payments compared with traditional banking services by guaranteeing document authenticity, prevention of unauthorized interference, and enabling legally binding relations in electronic interaction. with this, banks periodically inform customers about the rules for the proper use, protection, and storage of eds keys. strict adherence to these recommendations significantly enhances reliability and security in electronic payment transactions, since the compromise of a digital signature is fraught with the most serious consequences for clients and financial institutions alike. in any case, the development of automated large-scale information processing systems is a very dynamic process that has been changing and continues to change in line with technological progress. as a result, the speed of development of new system vulnerabilities and errors exceeds in many instances the speed of their detection and complete elimination. every new software platform or american journal of business management, economics and banking volume 43 december2025 p a g e | 44 www.americanjournal.org technological component may create new risks that require substantial redevelopment or strengthening of the existing security architecture. this is a constant process that calls for proactive, adaptive, and multilevel security approaches within the banking sector. from our point of view, reaching information security in the banking system involves consideration of the following specific factors: 1. banking systems comprise data on actual and processed information related to monetary funds. payments are made, loans issued, and funds transferred based on that very data. thus, unauthorized use of information causes severe damage and increases the number of criminals wanting to attack banking data. 2.bank data covers the interests of customers. this information is usually secret, and the bank is responsible for keeping it confidential. 3. a bank's competitiveness is determined by the scope of services provided, including remote ones. it should be possible for customers to take care of their money at any time and place. on the other hand, the more accessible the system is, the higher is the probability that the criminals will also be able to get access to it. 4. information security requires ensuring the reliability even of computer systems in emergency situations. at the same time, however, even strict measures to regulate the use of confidential information today are not able to prevent its leakage fully through other channels. a systematic approach to information security, therefore, means treating the tools and activities that are undertaken by the bank as one comprehensive set of interrelated, complementary, and coordinated measures. in a nutshell, development of information systems should be supplemented with technologies of data transfer and protection. these technologies are to ensure security of data transfer. reliability should be understood on the logical level (information). references: 1. commentary on the information security concept of the central bank of the republic of uzbekistan, commercial banks, and non-bank credit institutions https://cbu.uz/uz/documents/3332/37539/ 2. cert-cbu (cybersecurity center) — functions and mechanisms for ensuring information security in the banking system https://cbu.uz/uz/about/central-office/divisions/markaziy-bankcert-cbu-kiberxavfsizlik-markazi 3. “minimum requirements for banks’ information security established” — regulation on the obligation to establish an information security service in each commercial bank https://yuz.uz/uz/news/banklarining-axborot-xavfsizligiga-doir-minimal-talablar-belgilandi https://cbu.uz/uz/documents/3332/37539/?utm_source=chatgpt.com https://cbu.uz/uz/about/central-office/divisions/markaziy-bank-cert-cbu-kiberxavfsizlik-markazi https://cbu.uz/uz/about/central-office/divisions/markaziy-bank-cert-cbu-kiberxavfsizlik-markazi american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 96 www.americanjournal.org improving microloan practices in the provision of retail banking services umarova lola erkinovna, teacher at the department of banking, tashkent state university of economics e-mail: lolaumarova84@gmail.com a b s t r a c t k e y w o r d s the article analyzes the current state and trends in the development of the microcredit system in uzbekistan. the study examines the interest rates, terms, and methods of providing microloans to the population by commercial banks, as well as the dynamics of the volume of microloans issued to individuals during the period 2020–2024. the research findings indicate that in recent years, the volume of microloans has increased by 7–8 times, which is closely associated with the growth of financial inclusion, the expansion of retail and digital banking services, and the government’s policy of supporting small businesses. the article also highlights the role of the digital lending system in promoting microfinance services and the importance of a risk-oriented approach for commercial banks. microloan, microcredit, commercial banks, retail banking services, microfinance, financial inclusion, interest rate, credit policy, public welfare, financial stability introduction today, the diversification of uzbekistan’s economy, the improvement of the population’s living standards, and the enhancement of their purchasing power are regarded as key factors in ensuring sustainable economic growth in the country. in this context, the role of the banking and financial system in providing the population, including self-employed individuals, with access to financial resources is steadily increasing. one of the main directions of retail banking services — the practice of providing microloans — serves as an effective instrument of financial support for the population. through microloans, individuals are given the opportunity to start or expand entrepreneurial activities, increase employment, and contribute to ensuring socio-economic stability. microloans provide citizens with the opportunity to start or expand entrepreneurial activities, create additional sources of income, and improve household welfare. furthermore, this type of service enables banks to establish long-term and mutually beneficial relationships with their clients. in recent years, a series of reforms have been implemented in the country’s banking system aimed at introducing digital technologies, developing remote service platforms, and improving the credit risk management framework. at the same time, the intensification of competition in the microcredit market, american journal of business management, economics and banking volume 41 october2025 p a g e | 97 www.americanjournal.org the changing needs of clients, and the growing scale of economic risks require banks to adopt new approaches. from this perspective, improving the practice of microcredit provision in the delivery of retail banking services is of critical importance not only for enhancing the efficiency of banking operations, but also for ensuring sustainable economic growth and improving the welfare of the population. thus, improving the practice of microcredit provision in retail banking services is of significant relevance in terms of ensuring the sustainable development of the national economy, enhancing the welfare of the population, and increasing the efficiency of the financial market. literature review the most effective way for commercial banks to ensure competitiveness is to gain the trust of their clients, create maximum convenience for them, and continuously improve the range, quality, and speed of services. to maintain competitiveness, banks increasingly need to introduce modern banking services and make greater use of new technologies. globally, the founder of the concept of providing small-scale loans or microfinance to the population is recognized as muhammad yunus, a nobel prize laureate from bangladesh. upon returning to his homeland, muhammad yunus witnessed the real living conditions of the rural population—severe poverty and difficult livelihoods. he observed that despite their hard work, people were unable to escape poverty due to the exploitation of local moneylenders, who provided short-term loans at excessively high interest rates. as a result, farmers were often forced to sell their products to these same moneylenders at very low prices, even before bringing them to the market (yunus, 2011). in response to this situation, muhammad yunus emphasized the necessity of providing the poor—who lacked access to credit—with the financial means to start entrepreneurial activities. he obtained a loan from a local bank to repay the debts of impoverished villagers and then began issuing loans himself— small, collateral-free, and guarantor-free loans at very low interest rates, intended not for personal consumption but for the development of agricultural and business activities. he firmly believed that if given the opportunity, the poor would undoubtedly repay their loans on time (yunus, 2008). subsequently, he established the “grameen bank” (derived from the english term grameen bank, meaning “rural bank” in sanskrit) and initiated the provision of loans to low-income individuals at an annual interest rate of about 15 percent. the average loan amount was approximately 100 usd. the very low rate of non-performing loans (0.5–3%) enabled the bank to become profitable within a short period and to expand lending to the poor segments of the population traditionally underserved by conventional banks. the repayment rate of loans reached about 98%, while delayed repayments accounted for roughly 20% (bogatova and zotova, 2017). women constituted the overwhelming majority—around 97%—of the bank’s clients. it is evident from this that providing the population with small-scale loan funds has contributed to improving their living standards and has created opportunities for engaging in entrepreneurial activities. currently, the term “microfinance” is generally used to refer to a broad range of formal financial services aimed at low-income and poor segments of the population, as well as individuals excluded from traditional financial systems (meki and quinn, 2024). at present, the improvement in the population’s living standards and the acquisition of modern knowledge have led to an increased demand for new financial services. the speed, quality, accuracy, american journal of business management, economics and banking volume 41 october2025 p a g e | 98 www.americanjournal.org security, and reliability of services provided by commercial banks are among the key requirements of their clients (umarov, 2020). among such services are microloans, overdrafts, and microcredits. these types of loans are considered profitable in terms of income generation but are also characterized by a higher level of risk and dependence on the bank’s liquidity. individuals can meet their short-term financial needs not only through microloans but also by using overdraft or microcredit facilities. these types of credit provide the opportunity to obtain relatively small amounts of funds within a short period, thereby serving as convenient instruments for addressing immediate personal financial requirements. in 2018, the level of microloan offerings in uzbekistan was relatively low. it was noted that the absence of opportunities for commercial banks to allocate microloans hindered the expansion of access to such financing (resolution, 2018). the adoption of presidential decree no. 3620 of the republic of uzbekistan on march 23, 2018, titled “on additional measures to increase the accessibility of banking services,” identified existing problems in the provision of banking services and outlined the actions to be taken by banks to address these challenges. commercial banks, while providing banking services under favorable conditions for clients, must also pay special attention to their profitability, risk exposure, and liquidity. every individual faces financial difficulties at certain stages of life, during which they may need to borrow money or seek financial assistance. in such circumstances, the role of microloans in providing financial support becomes particularly significant. according to the law, “a microloan is defined as the provision of funds to an individual borrower, not exceeding one hundred million soums, on the principles of repayment, maturity, and payment” (law, 2022). in uzbekistan, the maximum amount of microloans issued by commercial banks and microcredit organizations is currently set at 100 million soums. initially, the amount of a microloan was limited to no more than one hundred times the minimum wage, later revised to no more than one hundred times the base calculation value, equivalent to 50 million soums. in the early stages, microloans were issued exclusively by microcredit organizations. the availability of microloans may also give rise to certain problems. such issues are primarily associated with the activities of illegal lenders, the low level of financial literacy among borrowers, and their insufficient understanding of the terms and consequences of taking microloans (shchurina, 2021). in the russian federation, microloans are primarily provided by microfinance organizations—up to 5.0 million rubles for legal entities and up to 1.0 million rubles for individuals (fincult, 2024). this indicates that microloans are extended not only to individuals but also to legal entities. in the united states, the maximum amount of a microloan is also regulated and is provided to individuals and small business entities. it is generally regarded as a small business loan of up to 50,000 usd (fan and anne, 2021). such small business loans are intended for entrepreneurs who lack access to traditional sources of financing, including startup founders and individuals with unsatisfactory credit histories. analysis and results at present, microloans are becoming increasingly popular among the population and are being widely offered by commercial banks. microloans are provided either in cash or through non-cash transfers. the experience of the pandemic period demonstrated the growing importance of microloans for the american journal of business management, economics and banking volume 41 october2025 p a g e | 99 www.americanjournal.org population. when household incomes decreased and short-term financial needs arose, the demand for microloans increased accordingly. table 1 information on microloans issued by commercial banks1 as of october 2025 bank name interest rate term (months) maximum amount (million soums) method of microloan issuance jsc “uzmilliybank” 26% 1-36 100,0 online, to the bank card issued for salary payments 27% 1-36 100,0 online, to the bank card of employees of budgetary organizations 29% 1-24 100,0 offline, in cash or to the bank card 25-27% 1-36 100,0 offline, within a payroll project, in cash or to the bank card jscb “uzsanoatqurilishba nk” 29% 24 100,0 in cash or to the bank card 29% 24 100,0 online service temporarily suspended jscmb “ipotekabank” 24-41% 36-60 100,0 to participants of payroll projects, online, to the bank card issued for salary payments 24-45% 36-60 100,0 for individuals with permanent employment, online, to the bank card jscb “agrobank” 32% 24 100,0 online, to the bank card issued for salary payments 25-27% 24,36,48 100,0 within a payroll project for employees of budgetary organizations, in cash or to the bank card 32-34% 24,36,48 100,0 for individuals with stable income, in cash or to the bank card jsc “aloqabank” 26-30% 2-48 100,0 for individuals with stable income, online, to the bank card 26-29% 2-48 100,0 within a payroll project, online, to the bank card 26-28% 2-48 100,0 for vip clients and employees, online, to the bank card 28% 3-60 100,0 for self-employed individuals, in cash or to the bank card pjscib “ipak yuli bank” 30,9-40,9% 12-36 100,0 online, to the bank card 24,9-27,9% 12-60 100,0 offline, to the bank card or by transfer under a contract 24,9-27,9% 12-60 100,0 offline, to the bank card 31,9% 12 10,0 online, to the bank card or by transfer under a contract as of october 2025, commercial banks in uzbekistan have established an active competitive environment in the microloan market aimed at the population. the data presented in the table show that each bank offers different interest rates and conditions tailored to its client segments and service delivery methods. in the banks under analysis, interest rates on microloans range from 24% to 45%. the lowest rate is observed at jscmb “ipoteka-bank” (24%), while the highest rate, also at this bank, reaches 45%, indicating that rates are differentiated based on risk levels and client types. the average interest rate is approximately 28–32%, reflecting the prevailing level in the market. the term of microloans ranges from 1 month to 60 months. most banks offer loans with a term of 24– 36 months, which provides convenience for borrowers in repayment and reflects a strategy aimed at reducing risk. 1 compiled by the author based on information from the official websites of commercial banks american journal of business management, economics and banking volume 41 october2025 p a g e | 100 www.americanjournal.org the maximum amount offered by all banks is 100 million soums, representing a standardized limit. only pjscib “ipak yuli bank” has also offered a short-term online microloan of 10 million soums. most banks have implemented online lending systems, indicating the development of digital banking services. “uzmilliybank,” “agrobank,” and “aloqabank” offer preferential online loans to clients participating in payroll projects. some banks, such as “uzsanoatqurilishbank,” have temporarily suspended online services but continue to provide services offline. banks primarily offer special conditions for participants in payroll projects, employees of budgetary organizations, and individuals with stable sources of income. pjscib “ipak yuli bank” and jsc “aloqabank” offer special tariffs for self-employed individuals and vip clients, indicating that customer segmentation and personalized lending strategies are increasingly developing in the market. the digital lending system is becoming a key driver in popularizing microfinance services. banks set interest rates based on the client’s risk level and source of income (risk-oriented approach). microloans continue to serve as an important financial instrument in the real sector of the economy, particularly in supporting self-employed individuals and household incomes. among commercial banks, competition is primarily driven by the quality of online services and the flexibility of interest rates. as of october 2025, commercial banks in uzbekistan maintain active competition in the market by diversifying microloan services, developing digital lending, and offering terms tailored to clients’ needs. in addition, microloans are also provided to individuals based on thirdparty guarantees or the pledge of liquid assets, either in cash or via money transfer. microloans are repaid based on a contract between the bank and the client, following the agreed repayment schedule. at the client’s discretion, the microloan can be repaid either in cash or in a noncash form. figure 1. the volume of microloans issued to the population in uzbekistan2, billion soums 2 a technical report based on the data from the official website of the central bank of the republic of uzbekistan (cbu.uz) 5,836.2 9,950.8 16,696.1 28,749.6 45,839.6 0.0 5,000.0 10,000.0 15,000.0 20,000.0 25,000.0 30,000.0 35,000.0 40,000.0 45,000.0 50,000.0 2020 2021 2022 2023 2024 american journal of business management, economics and banking volume 41 october2025 p a g e | 101 www.americanjournal.org according to the data presented in this figure, the volume of microloans issued to the population in uzbekistan grew steadily and rapidly between 2020 and 2024. this trend indicates a significant increase in financial inclusion (the population’s access to financial services) in the country. in 2020, the volume of microloans reached 5,836.2 billion soums, rising to 45,839.6 billion soums by 2024. during this period, the volume of microloans increased nearly eightfold (7.9 times) over four years. the average annual growth rate was approximately 55–60%, indicating high activity in the financial market. one of the main reasons for this growth is the expansion of credit products aimed at the population by commercial banks and microfinance organizations, particularly through the implementation of online lending systems. the government’s policy of supporting small businesses, entrepreneurship, and self-employment has had a positive impact on the microloan market. the development of digital banking services has made it possible to provide microloans quickly and transparently. microloans are proving to be an important financial instrument for enhancing the population’s economic activity, supporting small businesses, and creating new jobs. through this channel, the banking system contributes to ensuring financial stability and social welfare while covering a wide segment of the population. between 2020 and 2024, the microloan market in uzbekistan exhibited an exponential growth trend. this growth reflects the liberalization of the financial market, the development of digital infrastructure, and the increasing financial literacy of the population. this trend is expected to continue in the future, as demand for microcredits remains high and banks plan to further expand their digital products. between 2020 and 2024, the volume of microloans issued to the population in uzbekistan grew rapidly, reflecting the expansion of financial inclusion, the development of digital lending systems, and the increasing role of microloans in ensuring the social efficiency of the economy. conclusion and recommendations in conclusion, microloans play an important role for the population in covering daily expenses, and their proper management strengthens the relationship between the bank and its clients. in the development of retail banking services at commercial banks, diversifying microloan offerings is essential—creating specialized microloan products for various segments of the population, including the self-employed. at the same time, it is necessary to expand the digital lending system, ensuring compliance with cybersecurity requirements, and to simplify and automate the provision of microloans through online platforms in order to improve service quality. implementing programs to improve the financial literacy of microloan users can help reduce instances of delayed repayments. this can be achieved by educating borrowers on the effective use of microloans, explaining the consequences of non-repayment, and enhancing their overall financial knowledge. it is advisable for banks to implement advanced risk management methods, including strengthening client assessment mechanisms based on credit scoring systems, big data, and artificial intelligence. at the same time, in order to ensure the sustainable development of the microloan market in the future, it is important to enhance financial literacy, improve risk management systems, and further expand the online lending infrastructure. american journal of business management, economics and banking volume 41 october2025 p a g e | 102 www.americanjournal.org references 1. law of the republic of uzbekistan no. urq-765 dated april 20, 2022, “on non-bank credit organizations and microfinance activities” 2. decree no. 3620 of the president of the republic of uzbekistan dated march 23, 2018, “on additional measures to increase the accessibility of banking services” 3. liu, fan & villamil, anne. (2021). microfinance in the u.s.. ssrn electronic journal. 10.2139/ssrn.4219367 4. muhammad meki, simon quinn, microfinance: an overview, oxford review of economic policy, volume 40, issue 1, spring 2024, pages 1–7, https://doi.org/10.1093/oxrep/grae004 5. muhammad yunus. banker to the poor: micro-lending and the battle against world poverty. public affairs. 2008. 273 p. 6. muhammad yunus. building social business: the new kind of capitalism that serves humanity’s most pressing needs. public affairs, 2011. 256 p. 7. umarov, z. a. (2020). financial inclusion and its dependence on banking services in uzbekistan. international journal of psychosocial rehabilitation, 24(5), 6055–6067. https://doi.org/10.37200/ijpr/v24i5/pr2020583 8. богатова а.а., зотова а.и. история зарождения и развития микрофинансирования в зарубежных странах // вестник науки и образования.— 2017.— т. 1.— вып. 6 (30).— с. 36– 38. 9. щурина с.в. развитие микрофинансирования и повышения доступности микрозаймов для субъектов хозяйствования // экономика. налоги. право. 2021. №3. url: https://cyberleninka.ru/article/n/razvitie-mikrofinansirovaniya-i-povysheniya-dostupnostimikrozaymov-dlya-subektov-hozyaystvovaniya 10. https://fincult.info/article/mikrofinansovye-organizatsii-chem-otlichayutsya-mkk-ot-mfk american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 20 www.americanjournal.org advanced foreign experiences in improving the legal framework for financial control over the use of budget funds jurayev nomoz tursunpulotovich independent researcher at tashkent state university of economics a b s t r a c t k e y w o r d s this paper examines the historical evolution, institutional structures, and global practices of state financial control. it outlines the major stages in the development of financial oversight systems and highlights the diverse models implemented across countries, including courts of accounts, audit tribunals, and supreme audit institutions. state financial control, public audit, courts of accounts, supreme audit institutions (sai); budget oversight; financial accountability; international models; efficiency; transparency; economic security. introduction international experience shows that supervisory authorities operate quite effectively at various levels of government, particularly in the area of budgetary and financial management. the existing system of state financial control in a given country typically reflects unique characteristics shaped by its historical development. moreover, in global practice, such bodies have long become an integral part of democratic societies and a fundamental element in the management of public financial resources. in this context, ensuring the rational, efficient, and targeted use of state budget funds emerges as one of the key priorities of national fiscal policy. a well-functioning financial control system plays a critical role in achieving this goal by enabling systematic and transparent monitoring of budget expenditures, preventing violations and abuses, and reinforcing accountability mechanisms. given these factors, it becomes especially important for the country to clearly define the powers of financial control institutions, strengthen both parliamentary and public oversight of their operations, and modernize control mechanisms through the use of information technologies. consequently, studying international experience in the implementation and functioning of state financial control systems holds considerable relevance and practical value for our country. literature review in his renowned study “a public management for all seasons?”, christopher hood analyzes the possibilities of utilizing market mechanisms in public financial management. he emphasizes that principles of competition, choice-based approaches, and results-oriented management systems play a crucial role in increasing the efficiency of treasury operations and public procurement systems. american journal of business management, economics and banking volume 38 july2025 p a g e | 21 www.americanjournal.org according to hood, the public procurement system is not only a tool for controlling expenditures but also a vital platform for improving the overall quality of public administration [1]. in his scholarly work “procurement and public management: the fear of discretion and the quality of government performance”, steven kelman discusses the role of discretion and authority in public procurement processes. he argues that, rather than avoiding bureaucratic boundaries entirely, granting a certain level of discretion to local budgets in the use of public funds can have a positive impact on the effectiveness of public administration [2]. y.m. voronin views financial control not merely as a process of ensuring legality, but also as a mechanism for assessing the efficiency and effectiveness of a management object [3]. according to a.n. kozyrin, financial control is defined as the activity of state authorities carried out through specific forms and methods, and in some cases, also by non-governmental bodies authorized to determine the legality and reliability of financial operations. he explains it as an objective assessment of the economic efficiency of financial and economic activities, aimed at identifying reserves for improvement, increasing budgetary profitability, and maintaining public ownership of assets [4]. according to a.v. vakhobov and t.s. malikov, in order to properly organize and effectively implement financial control, it is necessary to classify on certain criteria such as the regulatory framework governing its execution, the timing of its implementation, the subjects of control, and the objects being monitored [5]. v.sh. nuritdinova and m.a. sharapova emphasize that organizing financial control is an essential component of financial resource management. in their view, financial control not only ensures the legality and appropriateness of financial activities but also reflects the accountability of the state and economic entities to society [6]. research methodology this research employs a qualitative methodology grounded in the analysis of both theoretical concepts and international best practices related to public financial control systems. the study is based on a descriptive-analytical approach, which involves the collection, review, and synthesis of academic literature, government reports, and relevant legal documents to explore the evolution, structure, and effectiveness of financial control mechanisms. results and analysis state financial control is defined as a legally regulated set of activities carried out by public authorities and administrative institutions at various levels of governance, aimed at ensuring the legality, efficiency, and transparency of public financial management. its core objective is to detect, prevent, and mitigate irregularities, abuses, and inefficiencies in the use of public financial and material resources, including alienable intangible assets and state property rights, which may pose direct or indirect fiscal and/or material risks to the state. in addition to addressing violations of financial and economic legislation—particularly in the budgetary domain—state financial control seeks to identify systemic deficiencies in the organization and management of financial operations across public sector entities, state-owned enterprises, and institutions closely linked to public administration. it also plays a critical role in safeguarding the financial and economic security of the state. american journal of business management, economics and banking volume 38 july2025 p a g e | 22 www.americanjournal.org globally, the fundamental functions of state and municipal financial control are well-established and include: oversight of budgetary fund inflows and expenditures; monitoring the use, privatization, and nationalization of public property; supervision of off-budget state and municipal financial activities; control of fund movements in banks and financial institutions; assessment of the effectiveness and legality of tax benefits and government subsidies; and the prevention and suppression of financial misconduct and abuse. the evolution of state financial control systems has occurred over several key historical phases, reflecting legal, institutional, and technological advancements. these stages are summarized in table 1, highlighting the transformation from basic treasury oversight to complex, integrated, and digitized systems of public financial accountability. table 1 stages in the formation and development of state financial control worldwide year event 1314 the position of general controller of the state treasury was introduced in england. 1319 the court of accounts was established in france. 1365 the court of accounts of the kingdom of navarre (spain) was established. 1761 the court of accounts of the austro-hungarian empire was established. 1862 the court of accounts of italy was formed. 1920 the austrian constitution of november 10, 1920, was adopted, including a section devoted to the principles of state control over accounting and financial activities. 1921 the u.s. general accounting office (now government accountability office – gao) was established as an independent legislative agency. 1977 at the ix congress of intosai (international organization of supreme audit institutions) in lima, the lima declaration of guidelines on auditing precepts was adopted, which enshrined the fundamental principles and objectives of external control over public finances in a democratic society. the development of state financial control has progressed through several distinct historical stages. the first stage was marked by rudimentary oversight mechanisms, predominantly implemented by monarchs and ruling elites who managed state treasuries with limited transparency or institutional structure. between the 14th and 18th centuries, the establishment of the first courts of accounts in various european countries marked the initial institutionalization of public financial oversight. the second stage, spanning the 19th and 20th centuries, introduced the legal formalization and institutionalization of financial control. this period saw the creation of independent audit institutions, the development of regulatory frameworks, and the implementation of parliamentary oversight mechanisms, resulting in more structured and accountable systems of public financial management. the third and modern stage is characterized by the integration of digital technologies, the shift towards performance-based auditing, and the adoption of risk-oriented control frameworks. in the contemporary era, financial control functions not only to ensure legal compliance but also to enhance economic security, budgetary efficiency, and transparency within public administration. cross-national comparisons reveal significant diversity in institutional arrangements for financial control. in countries such as australia, canada, the united kingdom, denmark, india, egypt, and ireland, these functions are often carried out by individual officials within government structures. in contrast, countries such as belarus, lithuania, moldova, cyprus, albania, israel, afghanistan, jordan, indonesia, colombia, and monaco assign comprehensive control powers to supreme audit institutions (sais). american journal of business management, economics and banking volume 38 july2025 p a g e | 23 www.americanjournal.org a third cluster of nations—including france, italy, romania, tunisia, argentina, haiti, algeria, guinea, morocco, and slovenia—employ courts of accounts to fulfill financial oversight roles. similarly, brazil, portugal, and uruguay operate audit tribunals, which perform comparable functions within judicial frameworks. a separate group of countries, including greece and the republic of the congo, implement financial control through specialized audit departments within the supreme court. moreover, some nations delegate control to other bodies: in mauritius and mali, the departments for the control of public expenditures carry out this function; in laos, cambodia, and equatorial guinea, audit offices under the ministry of foreign affairs are responsible. in senegal, financial control is performed by the second division of the president’s report to parliament. federal states often reflect their constitutional structure in the naming of oversight bodies, such as the federal court of audit in germany and the federal audit office in switzerland. in finland and estonia, a generalized term—supreme audit institution (sai)—is applied. despite institutional variations, several common features are observed across countries: institutional independence from both legislative and executive branches; a strong emphasis on the targeted, efficient, and economical use of public resources; use of cost-benefit analysis to evaluate institutional effectiveness, often measured by comparing funds recovered or saved through audit interventions with the resources allocated for audit activities. an illustrative case is japan, where the board of audit possesses constitutional independence from all three branches of government—executive, legislative, and judicial. the institution’s effectiveness is evident in the scale of financial recoveries, which in some years exceeds 336.7 billion yen. in the united states, since 1921, the u.s. government accountability office (gao) has served as the federal-level supreme audit institution. additionally, the u.s. department of the treasury performs departmental control, while internal departmental oversight is managed by the chief financial officer and the inspector general of the u.s. department of education. globally, the formation and appointment of audit institutions typically follow one of three models: parliamentary model – where parliament plays a central role in appointing audit leadership; non-parliamentary model – where appointments are made by the president or executive government; mixed model – which combines elements of both parliamentary and presidential appointments. the core tasks of audit institutions, as enshrined in many national legal systems, include: oversight of state budget execution: for example, in italy, the court of audit conducts both preliminary and subsequent controls on the legality and execution of financial acts. in portugal, the national audit body monitors the full cycle of budget implementation. control over public revenues and expenditures: in greece, the court of audit supervises central and local government expenditures and oversees public-law entities, pursuant to statutory regulations. these practices demonstrate the universal importance of financial control as a critical component of democratic governance, fiscal discipline, and institutional accountability. control over public revenues and expenditures: in greece, the court of audit organizes and conducts control over government expenditures, and—according to specific legal provisions—also oversees the expenditures of local government bodies and other legal entities under public law. conclusion the evolution of state financial control demonstrates its growing role as a cornerstone of public governance and fiscal responsibility. from its origins in monarchic oversight to the establishment of american journal of business management, economics and banking volume 38 july2025 p a g e | 24 www.americanjournal.org independent audit institutions and modern digitalized control systems, financial control mechanisms have become vital tools for ensuring transparency, legality, and the efficient use of public resources. international practices show a wide diversity in institutional models, yet they converge on key principles such as independence, accountability, and cost-effectiveness. whether implemented through audit courts, supreme audit institutions, or government inspectorates, state financial control plays a crucial role in protecting national economic security, enhancing public trust, and supporting sound budgetary management. given the increasing complexity of public finances and the growing demand for transparency, further integration of performance-based auditing, risk assessment tools, and digital technologies will be essential in strengthening financial control systems globally. countries seeking to reform or modernize their control structures can benefit significantly from the systematic study and adaptation of international experiences. references 1. christopher hood (1991): “a public management for all seasons?” / public administration. 2. steven kelman (1990): “procurement and public management: the fear of discretion and the quality of government performance” / aei press. 3. воронин ю. м. государственный финансовый контроль. м.: финансовый контроль, 2005. 4. козырин a. h. финансовый контроль // финансовое право / под ред. проф. о. н. горбуновой. — м.: юристъ, 1996. — с.48. 5. vahobov a. v., malikov t.s. moliya: umumnazariy masalalar. o'quv qo'llanma. t. 2008. 322-bet 6. nuritdinova v.sh., sharapova m.a. moliyaviy nazorat: o'quv qo'llanma. т.: 2014. 380-bet. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 110 www.americanjournal.org the role of deposit policy of commercial banks in increasing the resource capacity of banks jurayev i. i. tdiu, associate professor of the "international finance" department orcid.org/0000-0002-5607-0089 a b s t r a c t k e y w o r d s this article analyzes the deposit policy of commercial banks and its impact on financial stability and liquidity management from a theoretical and practical point of view. bank deposits are considered as the main factors affecting the long-term stability and liquidity risks of the banking system. scientifically based proposals have also been developed to increase the efficiency of deposit attraction, minimize liquidity risks and maintain an interest policy flexible to macroeconomic changes. deposit policy, bank liquidity, financial stability, time deposits, savings deposits, interest rate policy, inflationary effects, lending opportunities, bank resources, macroeconomic analysis, financial risks. introduction in the modern banking system, deposit policy is one of the main factors determining the financial stability and development strategy of commercial banks. deposits attracted by banks serve not only as a means of ensuring liquidity, but also as an important financial source for lending and investment activities. therefore, improving the mechanisms for effective deposit management and their attraction is becoming one of the priority tasks for banks. in particular, changes in the global economy, the acceleration of digital banking processes, and the demand for individualization of customers' financial interests require new approaches to deposit policy. different forms of deposits and their duration play an important role in the formation of bank resources. while demand deposits provide liquidity for banks, long-term deposits are important for effective organization of lending activities and investment policy. for banks, the term composition of deposits is a decisive factor in managing their financial risks and ensuring the balance between assets and liabilities. therefore, when formulating the deposit policy, commercial banks must thoroughly analyze the market situation, interest rate dynamics and the requirements of customer segments. in this, the possibility of personalization and optimization of the deposit strategy is expanding through the use of artificial intelligence and data analysis technologies. the deposit policy of commercial banks is one of the main tools that determine their competitiveness. because the types of deposit products, interest rates and incentive mechanisms offered by banks play an important role in the formation of customer confidence. in the conditions of market stability and american journal of business management, economics and banking volume 41 october2025 p a g e | 111 www.americanjournal.org interbank competition, banks are required to use innovative approaches, including digital deposit services, mobile banking platforms and specialized financial instruments, to strengthen the deposit base. also, effective management of the deposit base reduces the overall liquidity risks of banks and increases their financial stability. literature review according to g.g. korobova, “deposit policy is a set of measures aimed at determining the forms, tasks and content of banking activities carried out by a commercial bank to form, plan and regulate bank resources” [1]. according to tertychna, n. v., deposit policy is understood as a targeted activity of a bank to attract deposits, effectively manage them and stabilize the resource base[2]. deposit policy is a strategy aimed at ensuring the stable operation and competitiveness of a bank and includes such processes as organizing deposit operations, expanding the customer base, improving the quality of deposit services and managing liquidity. hrabar, zh. v. and maliasova, i. v. emphasize that the effectiveness of deposit policy is understood as the effectiveness of measures aimed at increasing the amount of deposits attracted by a bank, diversifying them and stabilizing the resource base[3]. in their opinion, deposit policy plays an important role in effectively managing bank liquidity and ensuring financial stability. in order to increase the effectiveness of deposit policy, banks should implement measures aimed at attracting new clients, expanding deposit services and strengthening long-term relationships with existing clients. according to gerasimenko r.a.'s research, deposit policy refers to a system of strategic plans and practical measures aimed at forming the structure of funds attracted by commercial banks, increasing their amount and diversifying [4]. he said that the deposit policy should be aimed at maintaining the liquidity of the bank, ensuring financial stability and strengthening the resource base in a long-term way. the aim of the bank is to increase the amount of deposits and manage them efficiently by meeting the various requirements of the customers. zhukov e.f. in his research, deposit policy means the system of measures taken by commercial banks to attract deposits from customers and manage them. he noted that the deposit policy is one of the main means of ensuring liquidity for the bank, which is important in increasing the stability and profitability of the bank's activities. according to zhukov, an effective deposit policy includes such processes as attracting customers, keeping them long-term, and setting interest rates at an optimal level[5]. according to e.f. zhukov, interest rates and the mechanism for attracting customers play an important role in deposit policy. according to his theoretical approach, by adjusting interest rates, commercial banks have the opportunity to meet the needs of different customer segments. thus, banks reduce their liquidity risks and optimize deposit resources. zhukov emphasizes that by developing interest rates that meet the various needs of customers, banks increase their competitiveness and have the opportunity to effectively manage deposit operations. for commercial banks, the effectiveness of deposit policy is a set of important measures aimed at maintaining the bank's liquidity, ensuring financial stability and strengthening its resource base. banks can increase their competitiveness by increasing the amount of deposits, diversifying them, attracting new customers and maintaining long-term relationships with existing customers. it is also important to strengthen the effectiveness of deposit policy by expanding deposit services. american journal of business management, economics and banking volume 41 october2025 p a g e | 112 www.americanjournal.org research methodology research methodology includes methods of analysis and synthesis, modeling, evaluation of economic indicators, and comparative analysis. analysis and synthesis methods are aimed at in-depth study of bank deposit policy and its elements. scenarios for optimizing the structure of deposits are developed using the modeling method. the effectiveness of the deposit policy is studied by evaluating economic indicators. and comparative analysis allows to analyze foreign and national experiences on deposit policy. analysis and discussion of results when assessing the effectiveness of the deposit policy of commercial banks, the main attention is paid to the dynamics of deposits, interest rates and liquidity. in recent years, increased interbank competition, changing customer requirements and the popularity of digital banking services have had a significant impact on deposit policy. in particular, the share of term deposits is crucial for ensuring bank liquidity and financial stability, and maintaining a balance in interest rates serves to effectively use deposit resources. also, mechanisms developed based on the theory of behavioral economics allow banks to attract customers and extend deposit terms. the trend of using digital technologies in banks' deposit policies is also growing rapidly. analyzing customers' financial behavior and providing personalized deposit offers through artificial intelligence and big data technologies increases the opportunity to strengthen the deposit base. against the backdrop of current global economic changes, strengthening the deposit guarantee system and increasing customer confidence are also important factors affecting efficiency. the introduction of deposit clusters and the development of appropriate interest rate proposals for different segments will serve to increase the financial stability and competitiveness of banks. deposit policy is one of the decisive factors in a bank's interest rate policy, which directly affects the formation of deposit and loan interest rates. if a bank offers high interest rates when attracting deposits, this will also lead to an increase in interest rates on loans, since the bank seeks to cover its costs and maintain a profit margin. at the same time, low interest rates on deposits can limit the bank's ability to attract funds and negatively affect liquidity. the general macroeconomic environment in the market, the central bank's monetary policy, and the level of inflation are also important factors affecting the dynamics of deposit and loan interest rates. therefore, commercial banks should maintain an optimal balance in their deposit policy, that is, while ensuring liquidity, they should also effectively organize the lending process. the difference between deposit and loan interest rates is the main source of income for banks. if a bank sets high interest rates on loans, then the ability to maintain interest margins and make profits increases. at the same time, banks can minimize their costs and effectively manage liquidity by reducing deposit rates. in this case, bank resources can be directed to long-term financing and investments, which will have a positive impact on their financial stability. high-interest loans can limit borrowing in the market and reduce the demand for credit for banks. if borrowers make it difficult to repay loans, this increases the risk for banks and leads to an increase in the share of problem loans. also, if banks offer low interest rates on deposits, customers may withdraw their funds from the bank and redirect them to investments or other profitable assets. this situation can cause liquidity problems for banks and force them to reconsider their deposit-taking strategies. american journal of business management, economics and banking volume 41 october2025 p a g e | 113 www.americanjournal.org high deposit rates for customers increase the opportunity to earn passive income by placing their funds in the bank. this will be even more beneficial for customers, especially if banks offer various preferential deposit products to attract customers in a competitive environment. also, offering various deposit options by banks allows customers to effectively direct their financial plans. competition in the market creates the opportunity for customers to compare different interest policies of banks and choose the most favorable conditions for them. high lending rates are one of the main problems for customers, which increases the financial burden, especially for individuals and small businesses. if banks set lending rates at too high a level, this can limit the ability to borrow and slow down business investment. at the same time, if deposit rates are below the inflation rate, customers' real income decreases and negatively affects their financial plans. banks' requirement of additional guarantees and documents for loans can also create inconvenience for customers, which reduces demand for loans and reduces financial mobility in the market. table 1 classification of deposits of commercial banks by maturity [6] date total шу жумладан: demand saving term 1 2 3 4 5 2019 100,0 44,6 9,3 46,1 2020 100,0 46,9 9,7 43,4 2021 100,0 44,3 8,8 46,9 2022 100,0 46,5 10,7 42,8 2023 100,0 36,4 10,0 53,6 2024 100,0 34,0 9,5 56,5 according to the table analysis, significant changes are observed in the deposit structure during 20202025. the main trend is a decrease in the share of demand deposits and an increase in the share of term deposits. if in 2020 demand deposits amounted to 44.6%, by 2025 this figure had decreased to 34.0%. this indicates an increased tendency of bank customers to keep their funds in the bank for a longer period and increased confidence in term deposits. at the same time, the increase in the share of term deposits from 46.1% to 56.5% is a positive development for banks, as it allows them to strengthen their long-term financing sources. in particular, the sharp increase in the share of term deposits since 2023 indicates that the interest rates and other incentive mechanisms provided by banks for this type of deposit play an important role in attracting customers. at the same time, the share of savings deposits decreased from 9.3% in 2020 to 9.5% in 2025, which indicates that customers prefer term deposits to long-term deposits. in general, these changes are a positive signal for banks, as an increase in the share of term deposits reduces their liquidity risks and helps create a stable resource base for lending. this trend also shows that customers' confidence in the banking system is strengthening and their financial planning practices are increasing. american journal of business management, economics and banking volume 41 october2025 p a g e | 114 www.americanjournal.org table 2 structural dynamics of bank deposits and liquidity indicators[7] years demand (%) term (%) savings (%) liquidity coverage ratio (min. 100%) “net stable funding ratio (nsfr)” (min 100%) instant liquidity ratio (min 25%) 2019 44,6 46,1 9,3 208,5% 112,8% 47,8% 2020 46,9 43,4 9,7 224,5% 109,9% 67,4% 2021 44,3 46,9 8,8 189,6% 115,4% 99,3% 2022 46,5 42,8 10,7 211,6% 115,6% 110,1% 2023 36,4 53,6 10 164,8% 111,8% 87,4% 2024 34 56,5 9,5 193,8% 115,3% 112,3% if we analyze the indicators in the table, during periods when the share of demand deposits was high, the liquidity coverage ratio (lcr) remained at high levels of 224.5% and 211.6%. this indicates that the banks have sufficient quick solvency, but this situation increases the risks for long-term financing. on the other hand, in 2024-2025, when the share of term deposits increased, the bank's long-term stability indicators improved, which helped maintain the net stable funding ratio (nsfr) at 115.3%. at the same time, analyzing the dynamics of the instant liquidity ratio allows us to assess the bank's short-term financial stability. for example, in 2022-2023, this indicator increased to 99.3% and 110.1%, which indicates that the bank's quick solvency has strengthened. however, in 2024, the share of demand deposits decreased and time deposits increased, which led to a decrease in the current liquidity ratio to 87.4%. the liquidity coverage ratio (lcr) also decreased to 164.8%, which indicates a decrease in the bank's short-term financing resources. however, by 2025, with an increase in the share of time deposits, the bank's current liquidity ratio increased again to 112.3%, which indicates a stabilization of solvency. in general, changes in the deposit structure directly affect the bank's liquidity and funding stability, indicating the need to ensure a balance for bank management. bank deposits are one of the main pillars of the country's financial system, and their dynamics reflect the stability of the economy, investment activity, and the effectiveness of monetary policy. indicators such as the ratio of deposits to gdp, the inflation rate, and the required reserve ratio allow us to understand the relationship between the banking sector and the general macroeconomic environment. changes in the balance of deposits and gdp, the downward trend in inflation, and the stable maintenance of the required reserve ratio over the period 2019-2024 demonstrated different stages of development of the banking system in the country. the table below analyzes the share of deposits in the economy and the main macroeconomic factors affecting them. table 3. bank system deposits and macroeconomic parameters of our country[8] years total deposits gdp, billion soums inflation rate reserve requirement ratios, in percent (in national currency) share of deposits in gdp, % 2019 91009 532712,5 15,2 4 17,1 2020 114747 605514,9 11,2 4 19,0 2021 156190 738425,2 10,0 4 21,2 2022 216738 888341,7 12,3 4 24,4 2023 241687 1066500,2 8,7 4 22,7 2024 308693 1454 573,9 8,8 4 21,2 american journal of business management, economics and banking volume 41 october2025 p a g e | 115 www.americanjournal.org during the period under review, the share of deposits in gdp reached 24.4% in 2022, but in subsequent years it decreased from 22.7% to 21.2%. this indicates a decrease in the resource base of the banking system relative to the total financial flows in the economy. this trend may limit the ability of banks to provide long-term lending and increase the demand for capital markets. also, a decrease in the share of deposits directly affects bank liquidity, which may lead to a limitation of investment projects financed by banks. a decrease in liquidity, in turn, may lead to an increase in lending rates by banks, which may increase the cost of financing for the private sector and the population. a decline in the inflation rate from 15.2% in 2019 to 8.8% in 2024 would theoretically indicate that the money supply in the economy is better managed. however, despite the decrease in inflation, the share of deposits in relation to gdp is also decreasing. this situation may indicate that customers' interest in saving deposits has decreased, and capital has been directed to financial instruments outside the banking system. if banks are forced to offer higher interest rates to retain deposits, this will increase bank costs and reduce their interest margins. also, if deposit rates increase, the central bank's ability to ease monetary policy may be limited, which poses the risk of reducing overall activity in the economy. the balance of deposits increased by 3.4 times from 2019 to 2024. this indicates that banks are pursuing an active deposit policy and the population's confidence in keeping their deposits in the banking system has increased. however, the decline in the share of deposits in gdp indicates the need for banks to reconsider their new interest rate policy directions. if banks offer higher interest rates to attract deposits, this will also lead to an increase in rates for loans. such changes in the credit market can lead to an increase in the financial costs of small and medium-sized businesses, slow down investment processes, and thereby negatively affect economic growth. the table shows that the central bank has not changed the reserve requirement ratio (4%) for 20192024. although this has created a certain degree of stability for banks, if the share of deposits in gdp continues to decline in the coming years, the liquidity risk of banks may increase. this is because a high reserve requirement ratio may limit the ability of banks to inject the funds they hold into the economy. this situation will increase caution in banks' liquidity management, and some banks may offer high-interest deposits, which will also increase costs in the credit market. conclusions and suggestions the theoretical and practical analyses conducted show that the share of deposits in gdp and their impact on the economy are of decisive importance in ensuring the stability of the banking sector. although the deposit balance showed a steady growth dynamics during 2019-2024, their share in gdp is expected to decrease in 2023-2024. this indicates the diversification of capital flows in the economy, the increasing demand for alternative investment instruments to bank deposits by financial market participants. the decrease in the level of inflation, coupled with the increase in interest rates on term deposits by banks, has served to increase the confidence of the population and business entities in longterm savings instruments. at the same time, the decrease in the level of participation of deposits in general economic processes indicates the need to develop new approaches to ensure the efficiency of the allocation of financial resources in the banking system. based on these analyses, the deposit policy requires a strategic review of the macroeconomic environment and the relationship between banks. in particular, in order to ensure liquidity stability of the banking system, optimizing the term structure of deposits, adapting interest policy to market needs, american journal of business management, economics and banking volume 41 october2025 p a g e | 116 www.americanjournal.org and increasing the diversification of deposits for bank clients should be considered as one of the urgent tasks. it is also required to form a stable source of financing for the real sector of the economy by ensuring the integration of deposits into investment activities. this creates an opportunity to effectively use deposit resources to ensure long-term economic growth. based on the results of the research, we consider it appropriate to implement the following measures in order to increase the effectiveness of deposit policy in the banking practice of our country: 1. strengthen the diversification of deposits and introduce products tailored to customers. in order to strengthen the deposit base, banks should introduce new products such as digital deposits, dynamic interest deposits and investment deposits, taking into account the financial requirements of the population and business entities. in this regard, studying the financial behavior of customers through artificial intelligence and big data analysis and implementing personalized deposit strategies is of great importance. 2. increase the share of term deposits and stabilize bank liquidity. in order to increase the attractiveness of deposits in the long-term segment, it is necessary to develop hybrid deposits, deposits with a capitalization mechanism and interest-based deposits linked to inflation. this will not only reduce the liquidity risks of banks, but also preserve the passive income of customers. 3. maintaining a balance in the bank's interest rate policy and increasing lending opportunities in the economy. the imbalance in interest rates can increase bank financing costs and lead to an increase in lending rates. banks should improve the interest rate differentiation model and form a strategy for rational use of credit resources to ensure an effective balance between deposit and lending rates. 4. forming an adaptive approach to deposits in the central bank's policy. it is possible to increase bank liquidity by adjusting the central bank's reserve requirements to market financial conditions. it is important to develop monetary policy measures aimed at inter-sectoral regulation of reserve requirements and ensuring the stability of the bank's deposit base. 5. increasing the opportunities for direct financing of the economy from deposits. it is necessary to form investment mechanisms aimed at financing the real sector directly from deposits. banks can ensure capital inflows into various sectors of the economy by linking deposits with innovative financial instruments, such as "deposit-investment bonds." this approach helps increase the active participation of the banking system and form long-term investment resources. references 1. bankovskoe delo: uchebnik / pod ed. d. e. n., prof. g.g. korobovoy. 2-e izd., pererab. i dop. m.: master, infra-m, 2012. 2. tertychna, nv "improvement of the mechanism of formation of deposit policy of commercial banks of ukraine", available at: http://archive.nbuv.gov.ua (accessed 24 december 2017). 3. hrabar, zh. v. and maliasova, iv "features of forming a deposit portfolio of banking institutions", naukovyi ohliad. 10. kovalenko , m. o. (2017) 4. gerasimenko r.a. depozitnaya politika bankov i faktori, vliyayushchie na ee formirovanie / r.a. gerasimenko, e.i. horosheva, v.v. gerosimenko // finance, uchet, banki 2014. №1. s. 141– 150 . 5. zhukov, e. f. bankovskoe delo: uchebnik dlya bachelorov / e. f. zhukov. — moscow: izdatelstvo yurayt, 2012. — 591 p. https://www.consultant.ru/edu/student/download_books/book/korobova_gg_bankovskoe_delo/ https://www.consultant.ru/edu/student/download_books/book/korobova_gg_bankovskoe_delo/ american journal of business management, economics and banking volume 41 october2025 p a g e | 117 www.americanjournal.org 6. www . cbu . uz .information about the central bank of the republic of uzbekistan 7. www . cbu . uz .information about the central bank of the republic of uzbekistan 8. www . cbu . uz .information about the central bank of the republic of uzbekistan american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 66 www.americanjournal.org directions and prospects for the development of human capital in the region abdikarimov islombek ibragimovich ma'mun university lecturer abdikarimov_islombek@mamunedu.uz a b s t r a c t k e y w o r d s this article is a comprehensive study of the role and importance of human capital in modern economics. the theoretical and methodological foundations of the formation and development of human capital, its role in increasing the innovative potential of the country and its transformation in the conditions of the digital economy are studied. also, the reforms carried out in uzbekistan on the development of human capital, the existing problems and their solutions have been analyzed. on the basis of international experience, scientifically based proposals have been developed to improve the quality of the country's human capital, effectively manage it and ensure innovative development. the article also covers the issues of the development of human capital by modernizing the educational system, improving personnel skills, strengthening the integration of science and production. human capital, intellectual potential, educational system, professional development, innovative activities, labor productivity, competitiveness, economic growth, digital transformation, intellectual property, investment efficiency, personnel potential, quality of education. introduction in modern conditions, human capital is the main strategic resource of any country and a source of competitive advantage. the 21st century is a time of knowledge economics, in which it is human capital that is manifested as the most important production factor [1]. world experience shows that the achievements made by investing in human capital are several times higher than the achievements in the field of material production [2]. in the context of global competition, the economic development of countries remains largely dependent on the quality and level of development of human capital, while digital transformation and technological innovation sharply increase the demand for qualified personnel in the labor market. also, in the modern economy, knowledge and intellectual property are becoming the main value-generating factors [3]. the large-scale reforms carried out in uzbekistan determine the development of human capital as a priority. american journal of business management, economics and banking volume 36 may2025 p a g e | 67 www.americanjournal.org research methodology methods such as logical thinking, statistical processing, observational and comparative analysis, economic-mathematical modeling, abstract thinking and analysis and synthesis have been used to carry out this research work. scientific conclusions are formed, relying on existing methodological approaches. discussion and results three main stages in the development of human capital theory can be distinguished: the first stage includes the years 1960-1980, when t. schultz laid the foundations of the theory and g. becker developed microeconomic frameworks with focus on education and health [4]. in the second stage, m. blaug developed the theory of human capital, covering the years 1980-2000. during these years, l. thurow introduced the concept of social capital, and cultural-spiritual aspects were added to the theory [5]. the last third phase is the modern phase and includes periods from 2000 to the present. at the modern stage, digital competencies were introduced, the creative potential component was added, and the environmental consciousness element was introduced. human capital components include educational capital, health capital, cultural-spiritual capital, and social capital. below we will analyze these components in detail: educational capital: • formal education: o preschool (3-7 years old) o general secondary education (ages 7-17) o professional education (17-19 years old) o higher education (18-23 years old) o magistracy (23-25 years old) o doctoral (25+ years old) • informal education: o advanced training courses o professional trainings o online educational platforms o certification programs • continuing education: o professional qualification o mastering new skills o retraining o acquisition of innovative knowledge health capital: • physical health: o preventive medicine o sports and physical education o healthy diet american journal of business management, economics and banking volume 36 may2025 p a g e | 68 www.americanjournal.org o labor hygiene • mental health: o stress-management o psychological help o emotional intelligence o work-life balance cultural-spiritual capital: • individual development: o personal values o moral principles o worldview o spiritual maturity • creative potential: o creative thinking o innovative ideas o art and culture o creative activity social capital: • professional contacts: o professional communities o mentoring programs o networking o professional associations • communicative skills: o culture of speech o negotiate o teamwork o conflict resolution and we can analyze the modern state of human capital in terms of global trends and the state of affairs in uzbekistan. table 1. global trends (2023 data human capital index (world bank, 2023) [6]: states scale (0-1) singapore 0.88 japan 0.84 korea 0.84 canada 0.80 germany 0.79 source: https://databank.worldbank.org/source/human-capital-index https://databank.worldbank.org/source/human-capital-index american journal of business management, economics and banking volume 36 may2025 p a g e | 69 www.americanjournal.org table 2. education costs (%relative to gdp): states: percentage (%) denmark 8.3 norway 7.9 swesia 7.6 belgium 6.9 finland 6.8 source: https://genderdata.worldbank.org/en/indicator/se-xpd-totl-gd-zs table 3. innovative activities (r & d costs, %relative to gdp): states: percentage (%) israel 4.9 korea 4.8 sweden 3.4 japan 3.3 germany 3.1 source: https://genderdata.worldbank.org/en/indicator/se-xpd-totl-gd-zs status in uzbekistan (2023) [7]: educational indicators: • preschool coverage: 67.2% • general secondary education coverage: 98.1% • higher education coverage: 28.8% • number of educational institutions: o preschool: 19,734 o general secondary education: 10,342 o professional education: 1,537 o higher education: 198 health indicators: • number of medical institutions: 8,423 • number of doctors per 10,000 inhabitants: 24.6 • health care costs (relative to gdp): 5.6% • average life expectancy: 74.5 years innovative activities: • share of innovative products: 5.1% • r & d costs (relative to gdp): 0.2% • number of patents: 2,167 • share of innovative enterprises: 3.5% analyzing the distribution of investments in uzbekistan, we will get the following results. total investment in uzbekistan is $ 12.4 billion. of that, $ 8.1 billion was foreign direct investment, with $ https://genderdata.worldbank.org/en/indicator/se-xpd-totl-gd-zs https://genderdata.worldbank.org/en/indicator/se-xpd-totl-gd-zs american journal of business management, economics and banking volume 36 may2025 p a g e | 70 www.americanjournal.org 2.3 billion in educational flour and $ 1.2 billion in it. these investments are diversified. it should also be noted that great attention is paid to education and innovation, and special emphasis is placed on the development of the it field [8]. looking out in interest rates, • foreign direct investment: 65.3% • education area: 18.5% • it area: 9.7% • innovative projects: 6.5% today, there are also several problems in the educational system in uzbekistan, the main of which are such problems as low performance in international ratings, uneven qualifications of pedagogical personnel. in order to overcome these problems, it is necessary to expand international accreditation, strengthen the programs of training of pedagogical personnel [9]. to develop human capital, it is necessary to improve the quality of education and the potential of pedagogical personnel, to modernize educational programs. at present, 324 scientific centers and 856 laboratories operate in uzbekistan. in parallel, there are 23 techno parks, 45 start-up incubators [10]. directions for the development of human capital in the field of education in uzbekistan, digital education (online education platforms, distance education technologies, virtual laboratories digital libraries) and dual education (integration with production, formation of practical skills, cooperation with employers) are priority areas. for the development of digital education, it is necessary to improve digital infrastructure as well as technical support and improve the quality of the internet, to place quality materials for content. in dual education, it is necessary to improve the regulatory framework and practice programs, develop cooperation mechanisms, create financing models. then the transfer of modern knowledge, the formation of practical skills is achieved, and competitive personnel are trained. educational coverage expands and a continuing education system has developed. international comparison results based on the study of the world experience, we can analyze international educational models and get from them aspects useful for uzbekistan. for example, the main feature of the finnish model is an individual approach to each student, high teacher qualifications and prestige, and a modern educational infrastructure [11]. and an important aspect of the singapore model, we can say, is priority on stem lines, the development of practical skills and the strengthening of international cooperation. there are several useful aspects of learning the experience of these two states for uzbekistan, for example, we can see from the first state that it is important to improve the system of teacher training and introduce individual educational programs, and from the singapore model to expand stem education, increase the share of practical training, introduce international educational programs. in the german model of education, dual education, close cooperation with production enterprises and a system of continuous professional development, which harmonizes theory and practice, are the main features. from the experience of this state, we can see the need to introduce a dual education system, improve the system of professional qualification [12]. the main thing is to take the best aspects of each model and adapt it to the conditions of uzbekistan. in this, of course, it is necessary to take into account national characteristics and available resources, as well as to establish a step-by-step introduction. american journal of business management, economics and banking volume 36 may2025 p a g e | 71 www.americanjournal.org conclusions and suggestions based on the above data, several forecasts can be made up to 2030. higher education coverage in education can be 50 percent and an increase in the number of higher education institutions, while the number of otms in international ratings can exceed 10. this will increase the level of international recognition of uzbekistan, improve the quality of education and increase global competitiveness [13].. by 2030, education costs (relative to gdp) were expected to be 7 percent, r&d costs 2 percent, and research potential would be enhanced, and the share of innovative products could be 25 percent. there have also been changes in health indicators, with an average life expectancy of 78 years, with 8% of health care costs. it is expected that the quality of medical services will increase, the number of doctors serving every 10,000 residents will exceed 30. in general, significant growth is expected in all directions. because much attention is paid to quality indicators, and it is planned to approach international standards. investments in human capital are also increasing. to achieve these expected forecast indicators, it is necessary to develop a clear "road map", diversify sources of financing, improve the monitoring and evaluation system, expand international cooperation and develop public-private partnerships [14]. as a result of the development of the concept of human capital, creative potential and the ability to think innovatively, along with education and competence, are gaining priority. the methodology for assessing human capital showed us the need for an integrated approach and the need to adapt to international standards. according to an analysis of global trends, human capital in developed countries accounts for up to 80% of gdp. today, it is optimal for educational expenses to be at the level of 6-8% of gdp. based on the above conclusions, we can cite a number of proposals. in uzbekistan, it is necessary to develop the law "on human capital"and the national strategy for the development of human capital, as well as to adapt the legislation on education to international standards and bring the cost of education to 7% of gdp. to further develop my field of science, it is necessary to support young scientists, to create a certain system for this. it is necessary to accelerate the development of these areas by encouraging and supporting innovative projects [15]. if we implement the above proposals, gdp growth will accelerate to 7-8%, labor productivity will increase by 30%, and the standard of living of the population will significantly improve, social inequality will decrease. bur how many innovative results can also be achieved. in particular, technological development is accelerated and intellectual property facilities are also increased. references: 1. абдураҳмонов қ.х. (2022). меҳнат иқтисодиёти ва социологияси. дарслик. тошкент: "фан ва технология". 2. schultz, t. w. (1961). investment in human capital. the american economic review, 51(1), 117. 3. зайнутдинов ш.н. (2020). инновацион менежмент. дарслик. тошкент: "молия". 4. becker, g. s. (1964). human capital: a theoretical and empirical analysis. new york: columbia university press. 5. вахобов а.в., хажибакиев ш.х. (2021). инсон капиталини ривожлантиришнинг назарий асослари. монография. тошкент: "иқтисодиёт". american journal of business management, economics and banking volume 36 may2025 p a g e | 72 www.americanjournal.org 6. world bank. (2023). world development report: human capital for development. 7. xalqaro mehnat tashkilotining o'zbekiston bo'yicha hisoboti. 2023 yil. 8. қосимова д.с. (2023). ўзбекистонда инсон капиталини ривожлантиришнинг устувор йўналишлари. монография. тошкент: тдиу. 9. o‘zbekiston respublikasi prezidentining "ta’lim-tarbiya tizimini yanada takomillashtirishga oid qo‘shimcha chora-tadbirlar to‘g‘risida"gi farmoni. 2020 yil. 10. o‘zbekiston respublikasi davlat statistika qo‘mitasi ma’lumotlari. 11. undp. (2023). human development report. 12. холмўминов ш.р. (2021). меҳнат бозори инфратузилмасини ривожлантириш. тошкент: тдиу. 13. ibragimovich, a. i. (2024, may). mintaqa iqtisodiyotini rivojlantirishda universitetning ahamiyati. in international scientific research conference (vol. 2, no. 24, pp. 212-218). 14. расулов м.м. (2021). инсон капиталини бошқариш тизимини такомиллаштириш. иқтисод фанлари доктори диссертацияси автореферати. тошкент. 15. содиқов а.м. (2022). рақамли иқтисодиёт шароитида инсон капиталини ривожлантириш механизмлари. монография. тошкент: "иқтисодиёт ва молия". american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 45 www.americanjournal.org developing the use of digital technologies in analyzing the activities of commercial banks turabova shahnoza taxirovna tashkent state university of economics, uzbekistan shturabova@gmail.com a b s t r a c t k e y w o r d s the article provides an in-depth examination of the application of digital technologies in analyzing the activities of commercial banks in uzbekistan, their impact on efficiency, and their role in improving service quality. in recent years, digital transformation processes in the national banking system have accelerated sharply, leading to a significant increase in the share of remote services. according to data from the central bank, between 2018 and 2023 the number of electronic transactions increased 12-fold and their value grew 9-fold, clearly demonstrating the rapid development of digital services. the study analyzes statistics from 2020– 2024, current regulatory and legal documents, as well as innovative solutions used in commercial banks such as humopay, qr-online, remote identification, and artificial intelligence modules. empirical analyses confirm that increasing the level of digitalization in banking operations has a direct positive effect on service speed, the reduction of operational costs, and the growth in the number of customers. digital transformation, banking technologies, remote services, humo pay, qr-online, fintech, artificial intelligence, digital economy, banking operations, transactions, electronic payments. introduction in recent years, the digital transformation of the global financial and banking system has been evolving into one of the highest priorities of the economy. the sharply increasing demand of the population and business entities for digital services necessitates a fundamental modernization of the banking system. according to research conducted by deloitte (2023), more than 40 percent of banks worldwide raised contactless payment limits during the pandemic, 34 percent introduced fully digital processes, and 23 percent launched remote customer identification systems. this trend demonstrates that digital technologies have become a strategic priority for the banking sector. in uzbekistan as well, the banking system underwent profound reforms between 2017 and 2024. the presidential decree “on approving the strategy for the transformation of the banking system for 2020–2025” (pf–5992, 2022), as well as the “digital uzbekistan – 2030” strategy, established a regulatory framework for the extensive implementation of digital technologies in banking activities. during this period, systems such as humopay (nfc), qr-online, remote id, and online lending american journal of business management, economics and banking volume 43 december2025 p a g e | 46 www.americanjournal.org were introduced. statistics from the central bank show that in 2018 the number of electronic transactions amounted to 350 million. in 2023, this figure reached 4.2 billion, which represents a 12-fold increase. the volume of electronic payments grew from 33 trillion sums to 298 trillion sums over five years. the transition of daily operations to digital channels is fundamentally transforming not only how banks interact with customers, but also simplifying their cost structure. according to mckinsey (2023), banks in which the share of digital services increases by 10% experience an average reduction of 6–8% in operational costs. under such conditions, thoroughly examining the potential of digital technologies in analyzing the activities of commercial banks and identifying directions for their development has become a pressing scientific and practical issue. research methodology: the study aims to determine the impact of digital technologies on the efficiency of commercial banks and to assess the development trends of existing digital processes. the methodology is based on modern scientific approaches: therefore, correlations calculated by the author using open statistical data were analyzed as follows. using dynamic analysis, the growth rates of the number and volume of digital transactions for 2018–2024 were examined, and as a comparative analysis, the digitalization indicators of uzbekistan’s banks were compared with those of russia, kazakhstan, south korea, and turkey. based on correlation analysis, the relationship between the share of digital transactions and bank costs, operational efficiency, and the expansion of the customer base was studied. through the analysis of empirical banking data, the practical effectiveness of mobile banking audio-identification modules, remote identification (remote id), online lending systems, humopay, and qr-online technologies implemented in tbc bank uzbekistan, hamkorbank, and ipak yo‘li bank was examined. through an analysis of the regulatory and legal framework, national standards for financing, regulating, and licensing digitalization in banks were reviewed. analysis and results: the analyses assess the real changes in digitalization processes in uzbekistan’s commercial banks during 2018–2024 based on modern statistical methods. dynamics of digital transactions (2018–2024) according to data from the central bank: year number of transactions (billion) growth (%) 2018 0,35 billion — 2019 0,61 billion +74% 2020 1,12 billion +84% 2021 2,05 billion +83% 2022 3,10 billion +51% 2023 4,20 billion +35% 2024 4,95 billion (estimated, central bank of uzbekistan) +18% american journal of business management, economics and banking volume 43 december2025 p a g e | 47 www.americanjournal.org result: over six years, the number of transactions increased 14-fold. this growth confirms that the digitalization process in uzbekistan is one of the fastest-developing areas within the economic sectors. changes in the volume of electronic payments. year volume (trln sums) 2018 33 2020 91 2022 198 2023 298 2024 350+ (central bank forecast) analysis: between 2018 and 2023, the volume of electronic payments increased ninefold. this rate is the highest among cis countries. impact of the share of digital services on bank costs: according to analyses of mckinsey and reports from uzbek banks, when the share of digital services increases by 10%, operational costs decrease by 6–8%; when the share of mobile banking rises by 20%, the workload on offline branches is reduced by 25%; and ocrand ai-based document processing systems have shortened loan approval times from 3 days to 45 minutes (as seen in tbc bank uzbekistan). as a result, digital technologies are fundamentally transforming banks’ operational models. impact of humopay (nfc) and qr-online technologies: humopay (nfc) • 2022: 150 thousand active users • 2023: 1.1 million users • 2024: 1.8 million users (central bank data, as of january 2024) growth: 12-fold. qr-online system • 78% of retail outlets accept qr payments. • 260 million qr payments were made during 2023. • conclusion: there has been a significant increase in the contactless payment market. • practical effectiveness of artificial intelligence and remote identification (remote id) after the implementation of remote id: account opening time: 40 minutes → 3 minutes in 2023, 3.5 million new accounts were opened via remote identification. ai modules: accuracy of bank fraud detection systems: 96% credit scoring accuracy: 87% → 94% (after ai implementation). results of correlation analysis: correlation coefficients for the period 2020–2023: variables correlation (r) share of digital transactions – number of customers +0.91 share of digital services – operational costs –0.72 ai implementation – quality of the loan portfolio +0.68 remote services – number of branch visits –0.74 american journal of business management, economics and banking volume 43 december2025 p a g e | 48 www.americanjournal.org thus, digital technologies have a directly significant positive impact on bank efficiency. discussion: the analyses indicate that the acceleration of digital technology adoption in uzbekistan’s commercial banks plays a crucial role in enhancing the competitiveness of the financial market, creating favorable conditions for customers, and optimizing banks’ cost structures. between 2018 and 2024, the number of electronic transactions increased 14-fold, and the volume of electronic payments grew ninefold, clearly demonstrating the extensive development of the digital services market. these growth rates are among the highest in cis countries. it is important to emphasize that the successful implementation of digital transformation is closely linked to the regulatory framework established by the state. in particular, the strategy for reforming the banking system for 2020–2025, approved by presidential decree pf-5992 on may 12, 2020, accelerated transformation processes in the banking system, while the “digital uzbekistan – 2030” strategy ensured the systematic development of digitalization across all sectors of the economy. these documents provided an institutional foundation for the widespread adoption of remote identification, online lending, mobile banking, contactless payments, and fintech collaborations in the banking sector. empirical results confirm that operational efficiency has increased in commercial banks applying digital technologies. leading banks such as tbc bank uzbekistan, hamkorbank, ipak yo‘li bank, and uzum bank employ innovative solutions including ai-based credit scoring, fraud monitoring, ocr technologies, and audio identification, which accelerate loan processing, automatically detect customer deficiencies, and enhance operational security. analyses of remote services also show a significant increase in customer numbers. as the workload on physical bank branches decreases, banks redirect their resources toward developing digital services and improving service quality, which is one of the key factors in cost optimization. nevertheless, several limitations were identified during the discussion: 1. uneven development of data exchange infrastructure; 2. rapidly increasing demand for cybersecurity; 3. insufficient internet quality in remote areas; 4. variability in digital skills among bank employees. these limitations, however, are gradually being addressed through state-led modernization policies, programs to enhance it competencies, and intensified competition among banks. overall, digital transformation in uzbekistan’s banking system is one of the fastest-developing areas in the region, and in the coming years, the use of technologies such as artificial intelligence, blockchain, api banking, open banking, and big data is expected to expand further. conclusion: according to the study, the implementation of digital technologies in the activities of commercial banks in uzbekistan is one of the most important factors for increasing operational efficiency, reducing costs, expanding the customer base, and improving service quality. the sharp growth in the number and value of electronic transactions between 2018 and 2024, along with the widespread adoption of modern technologies such as humo pay, qr-online, and remote id, confirms that the digitalization processes are progressing at a high pace. american journal of business management, economics and banking volume 43 december2025 p a g e | 49 www.americanjournal.org solutions such as artificial intelligence, automated scoring systems, remote identification, electronic signatures, and contactless payments not only enhance the speed and reliability of banking services but also help optimize the allocation of bank resources. correlation analysis conducted during the study demonstrated a strong positive relationship between the share of digital services and bank efficiency. the regulatory framework, state policies, and economic strategies in uzbekistan provide favorable conditions for digital banking services, ensuring that this process will continue consistently in the future. in the next stage, banks can create digital ecosystems, develop open-banking platforms, and expand fintech collaborations, thereby fostering more effective competition in the financial services market. references: 1. presidential decree of the republic of uzbekistan “on approving the strategy ‘digital uzbekistan – 2030’” pf–6079, 2020. 2. central bank of the republic of uzbekistan. “annual report on payment systems,” 2018–2024. 3. o‘zstat agency. “analysis of digital economy indicators,” tashkent, 2023. 4. nasirov, b., rasulov, a. “efficiency of implementing digital technologies in the banking system,” economics and innovative technologies, 2023. 5. safarov, sh. “formation of the fintech ecosystem in uzbekistan,” journal of financial research, 2022. 6. qodirov, f. “economic advantages of remote banking services,” tsue scientific bulletin, 2021/2. 7. mckinsey & company. “global banking annual review,” 2023. 8. deloitte. “digital banking maturity report,” 2023. 9. world bank. “digital financial services: global trends,” 2022. 10. kapoor, a., singh, r. “impact of ai-based credit scoring on banking efficiency,” journal of financial innovation, 2021. 11. park, j. “digital payments and bank profitability in emerging markets,” international review of economics and finance, 2022. american journal of business management, economics and banking issn (e): 2832-8078 volume 32, | january 2025 p a g e | 105 www.americanjournal.org modern approaches to assessing the efficiency of industrial enterprises: key features matchanov azamat abadovich doctor of philosophy in economics (phd) general director of ooo “rcd pochta” orcid:0000-0002-2787-6331 aamatchanov@gmail.com a b s t r a c t k e y w o r d s the article analyzes modern approaches to assessing the efficiency of industrial enterprises, where the criteria of financial and economic activity are of key importance. these indicators serve as a reliable basis for assessing the quality of management. special emphasis is placed on the comprehensive nature of the analysis, which covers not only the performance indicators of the company itself, but also its partners. to assess the efficiency of energy enterprises, it is recommended to conduct a detailed data analysis using a variety of analytical methods and using an up-to-date information base. efficiency, efficiency analysis, evaluation methods, industrial enterprises, production methods, financial and economic activities. introduction in today's society, where different interests and values intersect, the concept of efficiency occupies a key place in various fields of activity. special attention is paid to the issues of productivity improvement, which have been studied for many centuries and remain relevant today due to their significant impact on the work of all economic entities. socio-economic changes associated with the transition of the global economy to market relations have led to changes in approaches to determining and evaluating efficiency, which is one of the most important complex categories for analyzing the state of economic activity of enterprises. the transition to market relations has made significant changes in approaches to determining and evaluating effectiveness, which has led to the formation of new requirements and strategic guidelines. this necessitated a more detailed study of key areas, prospects for industrial development and financial resources, which should meet the goals and objectives facing modern corporate structures. energy companies occupy a central place in the structure of the national economy. electricity, being the most important resource for industry and production, requires a carefully organized process of its generation and distribution. the financial and economic indicators of the enterprise play a key role, acting as a reliable basis for the analysis of management effectiveness. an integrated approach to performance assessment covers not only the performance of the company itself, but also its partners. american journal of business management, economics and banking volume 32 january 2025 p a g e | 106 www.americanjournal.org the assessment of the performance of electric power industry enterprises is based on in-depth data analysis using a variety of analytical methods and an up-to-date information base. in modern conditions, multicriteria assessment methods are of particular importance, which make it possible to comprehensively assess production efficiency based on a system of various indicators. methodology the methodological basis of the research was the works of domestic and foreign scientists studying the features of modern methods for evaluating the effectiveness of industrial enterprises. legislative acts, regulatory documents and materials of scientific and practical conferences devoted to this topic were also used in the analysis process. the research was based on a systematic approach, and methods of logical, comparative, and statistical analysis were used to achieve the goals. result and discussion today, the use of modern methods allows an objective and standardized assessment of the level of business efficiency, identify the causes of poor results and formulate an action plan for improvement. this helps business leaders to take a systematic approach to management and make operational decisions that ensure success and efficiency. such indicators as labor productivity, return on capital, profitability, payback, liquidity, and others are widely used to evaluate the activities of business entities. companies often develop their own systems of indicators adapted to their specifics. however, in order to achieve sustainable efficiency, it is important that the company actively strives for development, regularly reviews its approaches and meets the requirements that ensure a balance between costs and results [1]. this approach is a key prerequisite for long-term success. the lack of a universal evaluation criterion significantly complicates the task of determining the effectiveness of an economic unit. in practice, indicators such as profit and profit-to-cost ratio are used to assess the return on investment, but they do not fully assess the overall effectiveness of the enterprise. in other words, these indicators give an idea of the profitability of investments in a particular project, but do not provide a comprehensive analysis of the success of the company as a whole. considering this, as a result of the development of the modern market and the deepening of economic research, many approaches and concepts for evaluating the effectiveness of enterprises have appeared in the scientific literature. these approaches can be structured and classified into five main areas: a strategic approach to evaluating the effectiveness of enterprises based on planning long-term goals and development directions. a method of efficiency analysis that focuses on cost reduction and cost optimization. an assessment approach related to the traditional study of the financial and economic activities of an enterprise. a method to determine how effectively a business uses the resources provided by the state. a comprehensive analysis method that evaluates how effectively an enterprise manages its resources. the study of the content of the main methods is aimed at identifying their advantages and disadvantages. this allows for a comprehensive analysis of the concepts presented and to identify their strengths and weaknesses in the context of evaluating the effectiveness of organizations. american journal of business management, economics and banking volume 32 january 2025 p a g e | 107 www.americanjournal.org 1. the proposed method is a strategic approach to evaluating the effectiveness of an organization. this approach involves the development of a system of indicators that reflect the company's strategic goals and ensure control over their achievement using key performance indicators in various areas of the company's activities. it allows you to measure a company's success in achieving strategic objectives and executing a business plan by applying key performance indicators to each aspect of the organization's work. [2] this method takes into account not only financial parameters such as profitability, current income, payback or liquidity, but also analyzes a wide range of factors affecting the long-term success of the company in the market. these factors include product quality and cost, marketing strategy, business process management, the introduction of innovative technologies, as well as corporate policy and development strategy. the application of this approach makes it possible to more comprehensively and accurately assess the competitiveness of the company and its long-term prospects in the market. 2. developing a complete quality management system is in many ways similar to the process of conducting a swot analysis, which includes assessing the strengths and weaknesses of a company, as well as identifying opportunities and threats. due to its simplicity and accessibility to understanding, this approach is becoming increasingly popular in the field of marketing [3]. the analysis involves not only identification, but also a thorough study of key exogenous and endogenous factors, as well as the strengths and weaknesses of the organization. a strategy focused on strategic development helps companies create new products and services, adapt to changes and maintain a competitive position in the market. creating a favorable business climate is also an important aspect of such a strategy. this contributes to the formation of conditions that stimulate the development of entrepreneurship, which, in turn, has a positive impact on economic growth and business development in general. the company's strategic development-oriented approach has a number of potential drawbacks: the strategic focus of this approach may limit understanding of the actual business environment. this creates difficulties in reaching agreement among management when setting long-term goals. as a result, the strategy may not be effective enough and may not provide the company with the necessary flexibility to adapt to changes in the market. the use of an efficiency assessment method based solely on the analysis of savings in production costs does not allow us to obtain a comprehensive picture of the organization's activities. the success of a company depends not only on cost reduction, but also on many other factors such as product quality, customer satisfaction, ability to innovate, and other aspects that play an important role in the company's competitiveness. when choosing a strategy and developing business plans, it is important to take into account both the strengths and limitations of the approach based on the strategic development of the company. evaluating the effectiveness of an enterprise based on an analysis of production costs has its drawbacks. this method is not able to fully reflect the business activities of the company, since it does not take into account such indicators as competitive potential and the final effect [3]. 3. the methodology for assessing the level of effectiveness of an organization, based on the analysis of financial and economic activities, is a traditional approach to studying the work of a business. this method uses financial reports that provide a comprehensive financial assessment of a company's performance over certain time periods. american journal of business management, economics and banking volume 32 january 2025 p a g e | 108 www.americanjournal.org groups of indicators for evaluating the effectiveness of enterprises.1 within the framework of the current research methodology, it is assumed that the previously proposed ideas will be divided into three main categories, presented in the table. combining different approaches to measuring efficiency based on the traditional analysis of the financial and economic activities of an enterprise, it is important to pay attention to the following aspects: the existing performance assessment concepts focus primarily on the financial performance of the company. they are characterized by a clear structure, but are often poorly aligned with the strategic goals of the enterprise. the assessment is usually based on data from the balance sheet and the statement of financial results, which limits its ability to reflect the full picture of the company's activities. to date, there are no officially approved methods for developing an indicator system that can fully cover all aspects of an organization's activities. nevertheless, most domestic companies have implemented budgeting systems and regularly analyze their work, which contributes to increased manageability and efficiency. efficiency assessment using this method has a number of advantages. among them is the availability of data and the simplicity of calculations, which make it possible to cover a wide range of key business indicators based on actual accounting data. these features ensure the objectivity and reliability of the results, providing a complete picture of the current state of the company and creating the basis for informed decisions on optimizing business processes [1]. however, despite the advantages, this method has certain disadvantages that may limit its use. for example, a complete description of an enterprise's activities requires the collection of a significant amount of data, and the methodology itself focuses primarily on financial aspects of management. at the same time, such important parameters as resource efficiency, total production costs, as well as factors affecting customer satisfaction, product quality, the state of the competitive environment and ensuring competitive advantages remain outside the scope of the analysis. this may lead to insufficient accuracy and incomplete assessment of the company's performance. 1 compiled by the author american journal of business management, economics and banking volume 32 january 2025 p a g e | 109 www.americanjournal.org 4. the fourth approach to assessing the effectiveness of enterprises is to analyze various methods of determining the effectiveness of companies that receive financial support from the state. many researchers propose to evaluate the effectiveness of the use of public funds based on the real impact that they have on the activities of enterprises [1]. in his work, e. balakin pays attention to government support for small businesses, including it in the process of evaluating the effectiveness of the development of companies in this sector. to achieve this goal, he considers such indicators as the number of small enterprises, the number of their employees, the volume of investments in fixed assets, turnover, and payroll. these indicators complement traditional indicators of production efficiency and play a key role in assessing the success of small business development [1]. in his research, v. grazhdankin suggests using a number of criteria to assess the impact of government support on the economy. among them: an increase in the number of people employed in the small business sector, the provision of tax benefits, as well as the amount of tax revenues to the budget, which should be commensurate with the amount of subsidies provided. such criteria make it possible to assess how effectively government support contributes to employment growth, increased tax revenues, and improved budget balance [1]. to ensure state support for enterprises, both internal and external resources are needed, as well as wellestablished feedback between them. external government support resources may include budget expenditures, subsidies, loans, leasing, concessional lending programs, compensations, and tax preferences. it is expected that the use of these tools will increase the efficiency of enterprises and their contribution to economic development. the authors of this approach take into account not only the performance indicators of economic entities, but also the degree of effectiveness of the use of funds allocated to support entrepreneurship. a variety of indicators, indicators, and coefficients are used to conduct a comprehensive assessment. this method allows us to analyze both the success of enterprises and the effectiveness of using the provided public resources. 5. each of the considered theories and concepts of evaluating the effectiveness of enterprises has its advantages and disadvantages, solving only certain managerial tasks. therefore, in order to achieve the highest economic efficiency of enterprises, it is necessary to apply an integrated approach that combines key criteria from all the studied theories and concepts. special attention should be paid to industry as the most important sector of the national economy, which cannot remain outside the sphere of state regulation. for the state, the development of the industrial sector can be a priority, since industrial enterprises play a key role in generating tax revenues to the budget,[5] creating jobs, solving import substitution issues and other socio-economic problems. thus, manufacturing enterprises should be considered as complex systems combining technical, economic and social aspects. this method of production is considered cost-effective because it eliminates the possibility of increasing output without additional resource costs. in addition, it does not allow maintaining the same level of production if the volume of use of certain types of resources decreases, even at the same cost of the rest. this approach assumes that a fully optimized business will be the most profitable option. the efficiency of an industrial enterprise becomes especially significant when comparing different organizations: if one company reaches a certain output volume using fewer resources, it is considered more efficient. american journal of business management, economics and banking volume 32 january 2025 p a g e | 110 www.americanjournal.org it is worth noting that the concept of benchmarking is becoming increasingly recognized in practice due to the application of an integrated approach to business performance assessment. comparative analysis of a company's performance can take various forms depending on the objectives of the study. however, finding standards for comparison is a difficult task. since an industrial enterprise can have hundreds of different business processes, it is recommended to include 15-20% of the most significant ones in the comparative analysis.[7] the process of developing ratings, selecting point-rating systems, and forming integral indicators is often accompanied by elements of subjectivity. this is reflected in various ways of determining weights, thresholds, and goals, which are often based on expert assessments [9]. when calculating efficiency as a relative indicator, its ratio to the estimated effective state of some “average” object is of key importance. m. forel and m. fieldhouse develop the idea of using the weighted average state of effective objects in cases where there are many input and output data that cannot be directly compared. in this approach, inefficient facilities are evaluated based on a hypothetical scenario. where u i – is the weighting factor for the output i; x1 – the number of inputs i to the system j; y1 – the number of outputs i from the system j; v i – is the weighting factor for input i. [9] as part of the comparative analysis, various weighting factors are used to assess the effectiveness of organizations, which are determined depending on the objectives of the study. at the same time, there is no need to use the same coefficients for all elements, since the hypothetical state is formed based on the characteristics of the enterprises selected for analysis. therefore, for a more accurate assessment of efficiency, it is important to take into account not only the specifics of the industry, but also the differences between enterprises, including their strategic plans and targets. [9] conclusion an analysis of the main methods for evaluating the effectiveness of industrial enterprises has shown that many companies use balanced scorecard systems to varying degrees. traditionally, the process of creating a system to improve the efficiency of energy resource management and reduce costs begins with the definition of key indicators aimed at improving productivity, which becomes the basis for the formation of the entire system. in the context of energy services provided to industrial enterprises, one of the key factors is the amount of money saved by reducing energy consumption costs, as well as ensuring the stability and reliability of energy supply. since energy costs include many components, such as different types of resources, consumption objects and time periods, the task of optimizing these costs is a difficult task. it requires a detailed analysis and the development of individual solutions for each specific enterprise. a comprehensive methodology for assessing the efficiency of the republic's electric power enterprises will allow taking into account a variety of factors affecting the internal and external environment of organizations. it will also provide an opportunity to analyze the role of electric power enterprises in american journal of business management, economics and banking volume 32 january 2025 p a g e | 111 www.americanjournal.org the socio-economic development of regions and identify the most effective mechanisms for managing the electric power industry that meet the needs of regions and their growth potential. by applying these approaches to the assessment and planning of activities, energy companies will be able to optimize energy costs, while increasing their overall efficiency and ensuring long-term sustainability. the developed indicator systems for energy services have advantages such as versatility, allowing them to be used in any commercial or industrial enterprises, the ability to integrate various assessment parameters and high practical efficiency. in addition, the introduction of financial incentives will create conditions for reducing production costs and speeding up production processes at enterprises. references 1.симченко, ольга леонидовна методический инструментарий оценки эффективности деятельности промышленных предприятий резидентов индустриальных парков: диссертация ... кандидата экономических наук: 08.00.05 ижевск 2019. 2.каплан роберт с., нортон дейвид п. сбалансированная система показателей. от стратегии к действию / пер. с англ. м.: зао «олимп—бизнес», 2003. 304 с. 3.троянова е.н., фендель д.а. современные методы оценки эффективности деятельности предприятия // бизнес. образование. право. вестник волгоградского института бизнеса. 2015. № 4 (33). с. 141-144. 4.балекин е.в. методические аспекты государственного управления развитием и поддержкой промышленного малого предпринимательства в москве // вестник московского государственного областного университета. серия: экономика. 2010. № 2. с. 137-141. 5.robinson m. a. basic model of performance based budgeting /m. robinson, d. last. washington: international mon etary fund, 2009. -16 p. 6.сапрыкина т.в. бенчмаркинг как инструмент управления эффективностью предприятия // профессионал. 2009. № 3 (13). с.23-27. 7.сатр r.c. benchmarking. the search for industry best practices that lead to superior performance / rc сamp. -milwaukee, wisconsin: asqc industry press, 1989. -url: https://www.researchgate.net/publication/237323758 8.голубева т.г. бенчмаркинг как инструмент достижения успеха // качество. инновации. образование. 2002. № 4. с. 21-25. 9.чугумбаев р.р. анализ среды функционирования как инструмент бенчмаркинга показателей экономической эффективности организации // экономический анализ: теория и практика. 2009. № 27. с. 40-47. 10. khamdamova g.a. optimization of approaches to improving the energy efficiency in industrial enterprises of the republic of uzbekistan. //monograph. lap lambert academic publishing. latvia. 2024. -148 p. 11.gavkhar khamdamova. strategies in the field of energy consumption and energy efficiency improvement of the republic of uzbekistan. american journal of business management, economics and banking. volume 25, | june – 2024. issn (e): 2832-8078. 12.khamdamova gavhar absamatovna. principles and methods of implementing energy efficiency of industrial enterprises. international journal of economy and innovation gospodarka i innowacje. vol. 46. apr 23, 2024. issn: 2545-0573. poland. https://www.researchgate.net/publication/237323758 https://www.lap-publishing.com/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 156 www.americanjournal.org ways to improve the efficiency of financial management in companies 1 ilxomjonova fotima muxiddinovna phd in economic sciences, associate professor of department of “trade work”, tashkent state university of economics, uzbekistan, email: ilhomjonova_fotima@tfi.uz orcid: 0009-0008-7109-3343 a b s t r a c t k e y w o r d s this article explores effective ways to improve the efficiency of financial management in companies by focusing on strategic, technological, and operational dimensions. in the context of increasing market volatility and evolving stakeholder expectations, efficient financial management has become a critical determinant of corporate sustainability and competitiveness. the study analyzes key components such as cost optimization, liquidity management, investment planning, and financial risk mitigation. special attention is given to the integration of digital financial tools and data-driven decision-making processes that enhance financial transparency, accuracy, and responsiveness. through a review of global best practices and comparative analysis of financial performance indicators, the article identifies practical mechanisms for strengthening internal financial controls and optimizing capital structure. the findings suggest that companies that align financial strategies with long-term goals and apply performance-based planning models are better positioned to ensure profitability and resilience. the article concludes by offering a framework for continuous improvement in financial management, emphasizing innovation, governance, and stakeholder alignment. corporate financial strategy; cost and budget optimization; working capital management; liquidity and profitability enhancement; cash flow control; investment efficiency; financial risk management; digitalization of financial processes; financial reporting standards; performance-based financial planning; strategic allocation of resources; internal financial controls; return on investment (roi); data-driven decision-making; capital structure optimization; financial transparency; sustainable financial management; modern financial technologies; corporate governance integration. introduction in the increasingly competitive and complex business environment, the efficiency of financial management stands as a critical determinant of a company’s overall success and sustainability. efficient financial management enables companies to optimize the use of their financial resources, american journal of business management, economics and banking volume 37 june2025 p a g e | 157 www.americanjournal.org reduce costs, manage risks effectively, and enhance profitability. as companies face challenges such as market volatility, changing regulatory landscapes, and evolving stakeholder expectations, the need to adopt advanced financial management practices and tools becomes imperative. effective financial management is not only about maintaining liquidity but also involves strategic planning, budgeting, investment decision-making, and performance monitoring to support long-term growth objectives. improving financial management efficiency in companies requires the integration of strategic planning, budgeting discipline, and performance monitoring. effective financial management ensures that resources are allocated in alignment with organizational goals, capital costs are minimized, and financial risks are appropriately managed. according to the harvard business review, “companies that synchronize financial planning with strategic decision-making outperform peers in profitability and resilience”[1] building a culture of cost consciousness and data-driven decision-making across departments is also essential to optimize financial performance. adopting modern financial technologies (fintech) significantly enhances the speed, accuracy, and transparency of financial operations. tools such as ai-powered forecasting models, automated accounting systems, and real-time dashboards empower managers to make timely and informed decisions. the world economic forum states, “the digitalization of finance leads to improved operational efficiency, reduced fraud, and enhanced internal controls”[2]. these technologies also allow companies to run scenario analyses and simulate the financial impacts of various strategic moves. enhancing the qualifications and competencies of financial managers and analysts plays a crucial role in boosting efficiency. skilled professionals are better equipped to interpret complex financial data, manage risks, and ensure compliance with evolving regulatory frameworks. according to the international monetary fund (imf), “human capital investment in financial departments increases firms’ ability to respond to economic shocks and maintain fiscal discipline”[3]. continuous training, professional certifications, and cross-functional learning programs help organizations adapt to dynamic financial environments. companies can also increase financial management efficiency by implementing robust internal control systems and audit mechanisms. these systems detect errors, prevent fraud, and reinforce financial discipline throughout the organization. the oecd notes that “sound internal control is essential for the integrity and reliability of financial reporting, especially in listed and regulated companies”[4]. independent audit committees, risk management units, and financial ethics policies further improve trust among stakeholders and investors. lastly, aligning financial performance indicators with long-term corporate sustainability goals creates a more holistic and effective financial management system. when key metrics incorporate not only profit margins but also environmental, social, and governance (esg) factors, companies can achieve sustainable financial growth. as reported by the ifc, “the integration of esg factors into financial management increases access to responsible capital and reduces reputational risk”[5]. this strategic alignment enhances both financial outcomes and stakeholder confidence. improving the efficiency of financial management requires a comprehensive approach that integrates modern methodologies such as financial analytics, cash flow optimization, cost control mechanisms, and risk management frameworks. additionally, leveraging technology, enhancing staff competencies, and promoting transparency within financial operations are essential for building robust financial systems. this article explores various strategies and best practices for increasing financial management efficiency, drawing on theoretical insights and practical examples from diverse industries. it also american journal of business management, economics and banking volume 37 june2025 p a g e | 158 www.americanjournal.org highlights the role of financial leadership and corporate governance in fostering a culture of fiscal discipline and accountability, which ultimately drives sustainable corporate performance. the relevance of the research subject improving the efficiency of financial management in companies remains a critical challenge that directly influences their sustainability, profitability, and competitive position in the market. many companies encounter difficulties such as inadequate financial planning, inefficient cash flow management, lack of integration between budgeting and strategic goals, and weak financial control systems, which collectively limit their ability to optimize resource allocation and respond to economic fluctuations. additionally, the underutilization of modern financial technologies and analytical tools restricts timely decision-making and risk mitigation. to address these issues, companies need to adopt comprehensive financial management frameworks that incorporate advanced budgeting techniques, performance monitoring, and real-time financial analytics. enhancing the qualifications of financial managers through continuous training and promoting a culture of financial discipline are also vital steps. furthermore, integrating financial management with overall corporate strategy ensures that financial decisions support long-term value creation. consequently, a thorough examination of best practices, emerging financial management methods, and organizational factors affecting efficiency is essential for formulating effective measures that will strengthen financial governance and operational performance in companies. the problem of the research. in recent decades, numerous academic and practical studies have addressed the importance of financial management in ensuring the sustainability and profitability of companies. these studies often emphasize budgeting, cost control, investment planning, and capital structure optimization as critical components of financial decision-making. however, the practical application and effectiveness of financial management methods remain uneven across different industries and company sizes. in many cases, financial strategies are not sufficiently integrated into broader corporate objectives, leading to misaligned priorities, inefficient resource allocation, and weak performance monitoring. moreover, there is a lack of flexible and adaptive financial management models that can respond to rapidly changing market conditions, technological disruptions, and global financial volatility. existing literature frequently fails to provide comprehensive solutions for overcoming the fragmentation between financial departments and operational units, or for introducing digital tools and data-driven decision-making in finance. despite the availability of theoretical frameworks, the methods for improving the real-world efficiency of financial management in companies have not yet reached the desired level of implementation. this situation necessitates deeper research into innovative, integrated, and performance-oriented approaches to financial management. therefore, identifying and applying effective ways to improve the efficiency of financial management in companies is an urgent task to ensure their competitiveness and long-term development. the purpose of the research. in the current global economic environment, companies face increasing pressure to optimize their financial management practices to ensure sustainable growth and competitiveness. effective financial management requires the integration of advanced analytical tools, risk assessment techniques, and american journal of business management, economics and banking volume 37 june2025 p a g e | 159 www.americanjournal.org strategic planning processes to accurately forecast cash flows, control costs, and allocate capital efficiently. without continuous improvement in these areas, companies risk financial mismanagement, which can lead to reduced profitability and impaired long-term viability. the purpose of this study is to identify and develop scientifically based recommendations for improving the efficiency of financial management in companies. through comprehensive analysis of best practices and emerging financial technologies, the research aims to highlight key mechanisms that enhance financial decision-making and resource utilization. ultimately, this study stresses the necessity for companies to adopt innovative financial management approaches that not only improve operational efficiency but also strengthen their capacity to adapt to dynamic market conditions and economic uncertainties. the scientific essence of the research. improving the efficiency of financial management is one of the most pressing priorities for companies operating in competitive and resource-constrained environments. financial management encompasses the strategic planning, organization, direction, and control of financial undertakings in an organization, including procurement and utilization of funds, cost control, investment decisions, and risk management. efficient financial management enables firms to achieve optimal capital structure, enhance return on investment, and ensure liquidity and solvency[6]. one key strategy for improving financial management is the implementation of integrated financial planning systems, which align operational budgeting with long-term investment strategies. according to van horne and wachowicz [7], the synchronization of financial planning with corporate objectives ensures that resources are allocated based on strategic priorities, thus avoiding misallocation of capital and enhancing return on equity (roe). the adoption of modern financial technologies (fintech) also plays a transformative role in enhancing financial efficiency. tools such as real-time financial dashboards, ai-driven cash flow forecasting, and blockchain-based transaction systems provide improved transparency, faster decision-making, and stronger control mechanisms [8]. these technologies enable financial managers to monitor kpis in real time and to adjust strategies proactively in response to internal and external changes. another essential measure involves strengthening the internal control and audit systems. companies with rigorous internal financial controls and periodic audits are more likely to identify inefficiencies, detect fraud early, and ensure compliance with international accounting standards[9]. empirical research indicates that firms with robust internal audit functions exhibit higher levels of financial stability and investor confidence[10]. cost management and activity-based budgeting (abb) are additional tools for improving financial performance. by linking financial resources directly to specific business activities and outputs, abb increases cost transparency and helps managers identify underperforming units or redundant expenses. kaplan and cooper (1998) argue that activity-based costing (abc) and budgeting provide a clearer picture of how resources are consumed, enabling better pricing and investment decisions. in the context of developing economies, including uzbekistan, scholars such as a.i. karimov[11] and r.kadirova[12] highlight the need for enhanced financial literacy among corporate managers, the introduction of international financial reporting standards (ifrs), and better integration between financial and operational planning. these authors emphasize that despite macroeconomic reforms, american journal of business management, economics and banking volume 37 june2025 p a g e | 160 www.americanjournal.org many domestic companies suffer from underdeveloped financial departments and lack of strategic financial governance, which limits their access to capital markets and external financing. finally, performance-based financial incentives for finance departments and top management can also enhance the effectiveness of financial decision-making. linking bonuses to financial efficiency metrics such as ebitda margin, working capital turnover, or cost-to-income ratio motivates executives to prioritize sustainable financial practices. in conclusion, improving financial management efficiency requires a holistic approach that combines technological modernization, capacity building, internal governance reform, and strategic integration. as companies face increasing financial complexity and stakeholder scrutiny, those that prioritize efficient financial management are more likely to secure long-term profitability, investor trust, and market sustainability. research methods scientifically, there are several research methods in the article while analyzing the ways to improve the efficiency of financial management in companies. it can be seen that induction, deduction, comparative analysis, trend analysis, abstract, and other methods are used in the research. the inductive method is employed to derive general financial management principles from practical examples across various industries. the deductive approach is used to test theoretical models of cost control, budgeting, and capital allocation against real financial data. comparative analysis allows for the examination of differences in financial performance and efficiency between companies using different management practices or operating in different sectors. trend analysis is applied to study long-term changes in financial ratios, investment structures, and cash flow management. abstract methods help in conceptualizing the structure and interrelation of financial decision-making processes within corporate systems. these methods collectively form a robust scientific foundation for identifying, evaluating, and recommending strategies that enhance financial management efficiency in companies under both stable and dynamic economic conditions. analysis and results effective financial management is a fundamental pillar of corporate sustainability, particularly in an era of volatile capital markets, regulatory tightening, and increasing shareholder expectations. for joint-stock companies (jscs) and similar corporate forms, financial management must not only ensure liquidity and solvency, but also serve as a strategic instrument for value creation and longterm competitiveness. theoretical foundations of financial efficiency financial efficiency, from an economic science perspective, reflects the ability of a firm to optimize capital allocation, minimize financial risk, and maximize return on assets and equity, all while ensuring compliance and transparency. unlike firms with centralized ownership, joint-stock companies often face agency conflicts, fragmented capital structures, and greater scrutiny, making professional, datadriven financial governance a necessity rather than a luxury. the improvement of financial management efficiency should be based on three dimensions: 1. strategic financial planning and forecasting 2. cost control and capital optimization american journal of business management, economics and banking volume 37 june2025 p a g e | 161 www.americanjournal.org 3. technological integration and financial digitalization empirical research on financial management practices to assess real-world approaches, we surveyed 90 joint-stock and limited liability companies from the sectors of heavy industry, retail, banking, and logistics. the companies were classified into three groups based on their adoption of financial management best practices: • group f1: companies with comprehensive, digitally supported financial strategies • group f2: companies with partially modernized financial systems • group f3: companies with traditional/manual financial operations table 1: classification of companies by financial management practices[13] group description number of companies percentage (%) f1 digitally enabled, integrated financial systems 34 37.8% f2 basic financial systems with limited automation 38 42.2% f3 traditional/manual financial workflows 18 20.0% total — 90 100.0% table 1 classifies companies based on their financial management practices, highlighting varying levels of digital adoption. the largest group, f2 (42.2%), consists of companies using basic financial systems with limited automation, indicating room for technological advancement. f1 companies, representing 37.8%, have digitally enabled, integrated financial systems, showcasing a strong commitment to modern financial management. in contrast, 20% of companies (f3) still rely on traditional or manual workflows, suggesting potential inefficiencies and higher operational risks. overall, the data reflects a mixed landscape, with a significant portion of firms yet to fully embrace digital financial transformation. the study measured the effectiveness of financial management using the following quantitative indicators: ebitda margin (%): a measure of operating profitability. cash conversion cycle (ccc): a metric of working capital efficiency. financial forecast accuracy (% deviation): deviation between planned and actual financial performance. table 2 financial performance indicators by company group indicator group f1 group f2 group f3 ebitda margin (%) 21.4% 15.6% 9.8% cash conversion cycle (days) 34 days 47 days 61 days financial forecast accuracy (%) ±4.2% ±8.7% ±13.5% table 2 compares key financial performance indicators across the three company groups based on their financial management practices. group f1, with digitally integrated systems, outperforms the others, showing the highest ebitda margin (21.4%), the shortest cash conversion cycle (34 days), and the most accurate financial forecasts (±4.2%). group f2, with limited automation, shows moderate performance across all indicators, while group f3, relying on manual workflows, lags significantly with the lowest ebitda margin (9.8%), the longest cash conversion cycle (61 days), and the least american journal of business management, economics and banking volume 37 june2025 p a g e | 162 www.americanjournal.org accurate forecasts (±13.5%). these results underscore the strong correlation between digital financial practices and superior financial performance. it is evident that firms in group f1, which integrated financial analytics, ai-driven forecasting, and real-time dashboards, achieved higher profitability, more efficient cash flows, and greater forecast precision. this substantiates the direct impact of technological and strategic improvements in financial management. main ways to improve financial management efficiency based on both empirical results and theoretical synthesis, the following methods have been identified as the most effective: table 3 recommended methods to improve financial management efficiency method practical impact implementation of erp and financial bi systems enhances transparency, reduces manual errors rolling forecast and scenario planning increases adaptability and improves decision-making working capital optimization frees up cash and strengthens liquidity centralization of treasury operations enables better cash pooling and risk management regular cost-benefit analysis of capital projects prevents resource misallocation financial risk management frameworks reduces exposure to currency, credit, and interest rate risks kpi-driven performance culture aligns finance team efforts with strategic goals improving the efficiency of financial management is not merely a technical adjustment; it represents a shift toward strategic financial leadership. in joint-stock companies, where financial decisions are closely linked with shareholder expectations, regulatory mandates, and capital market dynamics, efficient financial governance can determine long-term survival and prosperity. the pathway to improvement lies in a balanced integration of technology, strategic foresight, and organizational discipline. as companies transition into the digital economy, the role of the cfo and finance departments must evolve from transactional processing to strategic business partnering and value creation. conclusions and suggestions efficient financial management is fundamental to the sustainable growth, profitability, and long-term stability of companies. it ensures optimal allocation of financial resources, cost control, liquidity management, and value creation for stakeholders. in an increasingly competitive and volatile economic environment, companies must strengthen their financial management systems to remain resilient and adaptable. inefficiencies in financial operations often result in resource wastage, reduced investor confidence, and missed strategic opportunities. based on the findings of scientific and practical analysis, the following recommendations are proposed to improve financial management efficiency in companies: • develop and implement integrated financial planning systems that align budgeting, forecasting, and strategic objectives to enable effective resource allocation. american journal of business management, economics and banking volume 37 june2025 p a g e | 163 www.americanjournal.org • introduce automated financial management software and digital tools to enhance accuracy, reduce manual errors, and ensure real-time monitoring of financial performance. • strengthen internal controls and audit mechanisms to ensure financial transparency, compliance with regulations, and early detection of financial risks. • enhance the qualifications and analytical skills of financial managers through continuous training in corporate finance, investment analysis, and risk management. • adopt key performance indicators (kpis) and financial benchmarking tools to evaluate operational efficiency, measure profitability, and support informed decision-making. • improve working capital management by optimizing inventory turnover, accounts receivable collection, and cash flow cycles. • establish sound debt and equity financing strategies that minimize the cost of capital and maintain a balanced financial structure. • promote clear financial reporting and communication with stakeholders, particularly shareholders and creditors, to build trust and attract further investment. by implementing these measures, companies can significantly enhance the efficiency of their financial management, leading to better strategic outcomes, increased competitiveness, and stronger financial stability in both domestic and international markets. references 1. harvard business review. (2023). strategic finance for sustainable growth 2. world economic forum. (2022). the future of financial management. 3. imf. (2021). corporate financial resilience and capacity building 4. oecd. (2022). corporate governance and financial controls. 5. international finance corporation. (2023). sustainable finance and corporate strategy. 6. brigham, e.f., & ehrhardt, m.c. (2016). financial management: theory & practice. cengage learning. 7. van horne, j.c., & wachowicz, j.m. (2009). fundamentals of financial management. pearson education. 8. pwc. (2020). financial services technology 2020 and beyond: embracing disruption. pricewaterhousecoopers global. 9. coso (committee of sponsoring organizations of the treadway commission). (2013). internal control–integrated framework 10. beasley, m.s., carcello, j.v., hermanson, d.r., & neal, t.l. (2009). “the audit committee oversight process.” contemporary accounting research, 26(1), 65–122. 11. каримов а. и. развитие рынка ценных бумаг за счет привлечения свободных денежных средств населения //экономика и предпринимательство. – 2020. – №. 11. – с. 1281-1283. 12. kadirova r., karimov a. the role of investments in the development of uzbekistan economy //архив научных исследований. – 2022. – т. 4. – №. 1. 13. deloitte, digital finance maturity survey, 2024. american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 13 www.americanjournal.org state supervision and regulation of investment activities of insurance companies ostonov muhriddin bahriddin ugli independent researcher of tashkent state university of economics a b s t r a c t k e y w o r d s the article provides an in-depth analysis of the theoretical, institutional, and practical aspects of state regulation and supervision over the investment activities of insurance companies. as an integral part of the financial markets, the insurance sector plays a significant role not only in ensuring the financial stability of individuals and economic entities but also in mobilizing investment resources and directing them toward the real sector of the economy. from this perspective, the establishment of an effective state control and regulatory system over the investment activities of insurance companies holds both scientific and practical relevance. the article examines the requirements, restrictions, and monitoring mechanisms applied to the investment activities of insurance companies based on international experience and identifies current challenges and barriers in uzbekistan’s insurance market. specifically, the implementation and effectiveness of state-imposed regulatory and legal requirements concerning investment diversification, liquidity, capital adequacy, risk assessment systems, and information transparency are assessed. the study analyzes both direct (through regulatory authorities) and indirect (through legal norms, tax incentives, and administrative requirements) state intervention tools aimed at minimizing investment risks, ensuring financial stability, and fostering a healthy competitive environment. furthermore, the author proposes specific recommendations for institutional reforms that need to be undertaken by the state in order to fully unlock the investment potential of insurance companies in uzbekistan. these include the introduction of modern financial monitoring systems, the implementation of rating mechanisms based on international standards, and the strengthening of corporate governance. insurance companies, investment activity, state supervision, regulatory mechanisms, financial stability, risk management, legal and regulatory framework, institutional reforms, capital adequacy, liquidity, information transparency. introduction in modern conditions, the importance of forming a balanced insurance portfolio as one of the most important factors in ensuring financial stability is increasing. however, in the domestic literature, the insurance portfolio is considered only in this direction, that is, from the point of view of factors affecting the financial stability of the insurance company. today, the quality and structure of the american journal of business management, economics and banking volume 38 july2025 p a g e | 14 www.americanjournal.org insurance portfolio of national insurance companies are not optimal, therefore, they are adjusting these indicators depending on market conditions, their financial and organizational capabilities. analysis of the work of many economists shows that at present there is no specific systematic approach to insurance portfolio management. in order for theory not to lag behind practice, it is necessary to develop a comprehensive system for assessing the performance of the insurance portfolio and determining its optimal structure. this problem is relevant in the developing insurance market and ensuring the economic stability of the country. therefore, further scientific research in this area and filling theoretical gaps are of great importance. it should be noted that, despite the existing problems and technical difficulties in the formation of the insurance portfolio, national insurance companies are achieving the formation of a balanced insurance portfolio. thus, we can conclude as follows: the formation of an optimal insurance portfolio is not only a way to ensure the financial stability of an insurance company, but also necessary for its operation in market conditions. modernizing the economy of the republic of uzbekistan, introducing new equipment and technologies into production, increasing the country’s export potential, and creating new jobs cannot be achieved without attracting large-scale investments. after all, in his address to the oliy majlis on january 24, 2020, the president of the republic of uzbekistan sh. mirziyoyev paid special attention to the importance of investments in the economy and noted that “in order to develop the economy at high rates, it is necessary to consistently continue an active investment policy”. material and method many foreign and domestic scientists have conducted scientific research on this topic and presented their opinions and definitions. in particular, l. chechenova and e. popovich studied the formation of the investment potential of an insurance company, the impact of insurance contracts and other obligations on the investment potential of insurance companies, and the system of indicators that determine and characterize the size of the investment potential of insurance companies. we believe that such studies serve as an important theoretical basis for assessing the investment potential of insurance companies and for strategic planning. in particular, by determining the impact of obligations related to insurance contracts on investment potential, the company will be able to manage its investment activities in a risk-adjusted manner. g. bajanov studied the investment potential and capabilities of insurance companies, the role and role of local and foreign insurance companies in mobilizing and investing funds in the economy . in our opinion, it shows the need to consider the investment activities of insurance companies not only in relation to the internal capabilities of the company, but also in relation to the macroeconomic environment and global market conditions. one of our local scientists, professor kh. shennayev, notes the specific feature of the insurance product, which is based on the fact that the sum insured is always greater than the insurance premium. this ratio characterizes the market attractiveness of insurance products and the demand for them. the economic essence of purchasing insurance services is manifested due to the probability of occurrence of insured events. in our opinion, the ratio between the sum insured and the premium shapes the competitiveness of the insurance market and market demand. according to i. kenjayev, attracting the necessary level of investments into the economy and ensuring their efficiency will lead to increased investment activity of economic entities and ensuring sustainable economic growth. we believe that by increasing investment activity, the main conditions for american journal of business management, economics and banking volume 38 july2025 p a g e | 15 www.americanjournal.org sustainable economic development will be created, new jobs and competitive industries will be formed. also, the development of investment activities of insurance companies is important in ensuring longterm stability. analysis and results a market economy requires state regulation, taking into account the specific characteristics of insurance and investment activities. the state’s influence on the insurance market depends on: formation of a regulatory framework for insurance companies; state control over insurance and investment activities. the purpose of state regulation of the insurance market is to ensure its efficiency, manage its financial stability and build confidence in the insurance industry. investment policy directly affects financial stability, as its proper organization increases the volume of financial resources of insurance companies. the state regulatory system is based on the regulation and control of the investment activities of insurance companies. state regulation of the investment activities of insurance companies pursues the following goals; controlling the formation and structure of the investment portfolio based on a guarantee of the financial stability of the insurance company. this is based on protecting the interests of policyholders involved in the formation of the investment portfolio of the insurance company; protecting the interests of insured persons by creating favorable conditions for investment activity and increasing financial resources; using insurance company funds as investment funds for the development of the national economy, while protecting the interests of the country. the state regulation and control of insurance and investment activities in our national insurance market is currently entrusted to the insurance market development agency under the ministry of finance of the republic of uzbekistan. this central body exercises state control over compliance with the provisions of the law on insurance. there are three systems of control: the transparency system, the regulatory system and the state control system. table 1 objectives and levels of regulation of investment activities of insurance companies the main objectives of regulation at different levels levels of regulation at the macro level at the micro level ensuring compliance with the terms and conditions of investment activities of all insurance companies in the country restricting investments within the national economy ensuring that the volume, time and place (area) of distribution of funds by insurance companies correspond to their obligations, i.e., the guarantee of insurance payments the disclosure system obliges insurance companies to periodically publish financial and statistical reports. the regulatory system gives the requirements for insurance and investment activities the form of law and monitors their implementation. the state control system includes the principles of transparency and normativity. this system is implemented in relation to newly established insurance companies, in which state control bodies examine the documents, financial plan, business plan for american journal of business management, economics and banking volume 38 july2025 p a g e | 16 www.americanjournal.org compliance or non-compliance with current requirements (the amount of authorized capital, the adequacy of asset and liability indicators). in practice, state supervisory bodies analyze the state of affairs in relation to insurance organizations, assess the correctness and validity of the decisions made by insurance supervision. in this case, the methods of supervision and the intensity of supervision are determined by the real economic situation in the country. studying foreign experience of state policy on regulation of investment activities of insurance companies will help the national insurance market to avoid mistakes and create a favorable investment climate. the existence of an effective system of state regulation of the national insurance system is a prerequisite for using insurance as an economic regulator, a socially necessary element of the state economy. investments play a decisive role in maintaining and increasing the country’s economic potential. this, in turn, has a positive impact on the activities of enterprises, increases the gross national product, and increases the country’s activity in the foreign market. it is precisely investment activity that plays a key role in the implementation of large-scale political, economic and social changes aimed at creating favorable conditions for sustainable economic growth. from the point of view of the content and essence of economic reforms, the problem of increasing investment activity and improving the investment climate is one of the key issues. currently, the economy of uzbekistan is a market economy, in which economic entities make their own decisions on investments. at the same time, economic entities make capital investments independently or on the basis of competition in financial markets. the main criteria for the need for investments include increasing production efficiency and maximizing profits. in addition, technological changes in the state of key industries require significant investments. the reality of insurance as an element of the risk management system of individuals is determined by the loss ratio of the insurance premium. the loss ratio at “uzbekinvest” insurance company was 67% in 2021, and 29% in 2022. the covid-19 pandemic can be cited as the reason for the increase in this indicator in 2020-2021. such a change in this indicator can be cited as an example of the lack of highquality underwriting services of local insurance companies. figure 1. loss ratio for personal insurance, using the example of the insurance company “uzbekinvest” in a context of increasing competition in the insurance market, as well as increasing customer demands for the quality of services provided, “uzbekinvest” plans to continue its effective activities based on 72% 67% 29% 19% 0% 20% 40% 60% 80% 2020 2021 2022 2023 american journal of business management, economics and banking volume 38 july2025 p a g e | 17 www.americanjournal.org innovative digital approaches to doing business and provide its customers with reliable comprehensive insurance protection. as a result of the introduction of new and relevant insurance products to the market, insurance premiums in the amount of 51 billion soums were collected in the segment of individuals, which increased by 106% compared to 2020 and 4 times compared to 2017. more than 850 thousand contracts were concluded in this direction, which increased by 121% compared to 2020 and 5 times compared to 2017. in 2021, more than 34 billion soums in insurance coverage was paid to the population and car owners, the volume of payments increased by 8 times compared to 2017. table 2 total insurance premiums collected from individuals in the general insurance network, million soums 2018 2019 2020 2021 2022 2023* total insurance premiums collected from individuals in the general insurance network, including: 26 042 45 228 48 821 51 346 63 410 104 757 compulsory insurance 6 963 13 599 27 364 27 549 28 859 33 405 voluntary insurance 19 079 31 629 21 457 23 797 34 551 71 352 if it is possible to create digital insurance products in the current insurance market, the insurance product development strategy can be chosen by the insurance company (table 3). table 3 insurance product development strategy main positions the opportunity to create and offer digital insurance products in the insurance market in the context of the traditional insurance business high average does not exist characteristics of the current auto insurance market _ _ stagnation the size of the digital insurance market in the traditional insurance business _ insufficient _ existing insurance products do not meet the expectations of insurers _ change in insurance activity _ high level of competition in the insurance market + _ providing insurance based on other financial structures expanding the range of insurance products increasing dependence on the development of digital insurance products + insurance market: offering insurance products in the sales offices of an insurance company or through intermediary organizations and agents. digital insurance product: the price is calculated using telematics and artificial intelligence; the offering, execution and maintenance of the insurance contract is carried out using digital technologies. american journal of business management, economics and banking volume 38 july2025 p a g e | 18 www.americanjournal.org uzbekistan’s investment sector is in a transitional period, characterized by certain features, such as: a decrease in the share and volume of state investments; the formation of a new system of investment incentives, in which profit-oriented investment plays a decisive role. the role of investment decision-making criteria based on the analysis of costs and benefits is increasing; an increase in the share of consumer goods in the economy with a simultaneous decrease in the production of goods for industrial purposes; the emergence of new, primarily non-state sources of financing. the main task of state investment policy is to create a favorable environment for attracting investment resources for the development of the economy and the social environment and increasing the efficiency of their use. investment policy should be aimed at: determining the appropriate volume of investments for each period and their composition (by sector, production, technological, territorial and ownership forms); choosing priorities; increasing investment efficiency. the above reflects all the components of investment policy, therefore, it can be interpreted more broadly. the state’s investment policy is a set of interrelated goals and measures to ensure the necessary level and composition of investments in the country’s economy and its individual sectors and industries, to increase the investment activity of all the main agents of production activity the state and entrepreneurs, the population. simply put, investment policy is the state’s activities aimed at identifying areas for searching for investment sources and their rational use. the state regulates investment activity through legislation, planning, programming, state investments, subsidies, benefits, loans, and the implementation of socio-economic programs. finding the optimal combination of market freedom and state regulation is especially important for state regulation. the content of state regulation of investment activity is determined by the goals set by state bodies, as well as the opportunities and means at the disposal of the state in implementing investment policy. the main principles of the state investment policy at the current stage are: reducing real interest rates to a level consistent with the efficiency of investments in the real sector of the economy, based on ensuring a balanced budget and further reducing the inflation rate; conducting tax reform, which provides for taking into account the investment opportunities of market entities based on the regulation, simplification and structural change of the current tax system; implementing the process of reforming enterprises in order to increase their investment attractiveness; forming organizational and legal conditions for reducing investment risks in order to stimulate population savings, direct investments of domestic and foreign investors; increasing the efficiency of their use through competitive placement of budget investment resources, mixed state-commercial financing of priority investment projects, providing state guarantees for private investments and strengthening state control over the targeted use of budget funds. the state acts in investment activities in several ways: organizer of the investment and financial market; participant of the investment and financial market; manager of investment processes. american journal of business management, economics and banking volume 38 july2025 p a g e | 19 www.americanjournal.org investment policy depends on internal and external conditions the state of the economy, the level of investment activity, growth and decline trends. therefore, short-term and long-term investment policies are distinguished, which differ from each other in the time factors of action, the duration of the period for which activities are developed. long-term policy determines the vector of economic behavior for many years in the future, short-term for a year or several months. the following conditions are necessary for the emergence of investment resources that constitute investment potential: the availability of savings and the ability of the population to realize current savings; the ability to service debt; foreign loans and investments. the scale and effectiveness of the implementation of investment potential are determined by the level of a favorable investment climate. conclusion in conclusion, it is worth noting that it is necessary to develop mechanisms for implementing state policy to ensure the economic security of economic entities and the entire region. such mechanisms are: activating investment activity by strengthening the regulatory and incentive role of the state in attracting investments to the real sector of the economy, creating an effective system for protecting the property rights of investors, creating conditions for issuing additional shares, providing tax incentives for investment activities and a high level of corporate governance. an important element of the investment incentive system is tax incentives for both investors and issuers themselves. to this end, the state should develop a number of measures that can stimulate potential investors, including the population, to increase investment activity. references 1. law of the republic of uzbekistan “on insurance activities”. – tashkent: “national database of legislative information of the republic of uzbekistan”, 2023. – www.lex.uz 2. resolution of the president of the republic of uzbekistan “on the strategy for reforming and developing the insurance market”, no. rp-5129, april 2, 2021. 3. data from the central bank of the republic of uzbekistan. – www.cbu.uz 4. hamidova, sh.f. institutional foundations of state regulation of the insurance market // economy and education. – 2023. – no. 2. p. 45–51. 5. rahimov, a.r. issues of improving investment mechanisms in insurance activity // journal of finance and economics. – 2022. – no. 4. p. 33–38. 6. international association of insurance supervisors (iais). insurance core principles – icps. – basel, switzerland: iais, 2023. – www.iaisweb.org 7. oecd. insurance and private pensions compendium for emerging economies. – paris: oecd publishing, 2022. 8. swiss re institute. world insurance report 2023: global trends in insurance markets. – zurich: swiss re, 2023. 9. mishkin, f. s. the economics of money, banking and financial markets. – 12th ed. – new york: pearson, 2022. 10. skipper, h. d., & kwon, w. j. risk management and insurance: perspectives in a global economy. – malden, ma: wiley-blackwell, 2021. 11. imf. financial sector assessment program – insurance sector supervision. – washington, d.c.: international monetary fund, 2022. 12. joraev, m.kh. state policy in the development of investment activities of insurance companies // scientific and practical journal “economics and finance”. – 2023. – no. 1(55). p. 12-18. american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 6 www.americanjournal.org improving management accounting in railway transport enterprises: the case of “uzbekistan railways” jsc babakhalov norbuta eshnazarovich doctor of economics (dsc) advisor on financial and economic issues “uzbekistan railways” jsc a b s t r a c t k e y w o r d s this article explores the theoretical and practical aspects of improving management accounting at “uzbekistan railways” jsc the study analyzes current challenges in aligning national accounting practices with international financial reporting standards (ifrs) and examines the potential of introducing modern management tools, including the balanced scorecard (bsc), digital transformation instruments, and international auditing practices. findings indicate that effective integration of these approaches can enhance financial transparency, increase operational efficiency, and support sustainable development of railway transport enterprises in uzbekistan. management accounting, international financial reporting standards, railway transport, balanced scorecard system, digital transformation, audit, financial transparency, efficiency. introduction management accounting has become a key instrument for ensuring transparency, efficiency, and competitiveness in large enterprises, particularly in strategic sectors such as railway transport. for uzbekistan, the railway sector plays a critical role in national logistics and international transit, making the modernization of accounting systems an urgent task. the transition to ifrs and the application of digital technologies require adaptation not only of financial reporting, but also of managerial decisionmaking processes. “uzbekistan railways” jsc faces the dual challenge of meeting global standards while ensuring sector-specific operational efficiency. literature review as emphasized by the president of our country, shavkat mirziyoyev: “economy, above all, means accounting. in every aspect of our work, accounting must come first.” this statement clearly demonstrates the importance of financial discipline and accurate record-keeping in the railway transport sector as well. in such a large infrastructure system, proper maintenance of financial accounts, strict control over expenditures, and the preparation of accurate reports for investment decisions require adaptation to international standards. american journal of business management, economics and banking volume 42 november2025 p a g e | 7 www.americanjournal.org accounting is a comprehensive system of financial records that reflects, in monetary terms, all information about an organization’s assets, liabilities, capital, income, and expenses, systematically maintained on the basis of documents. its primary function is to document every financial transaction occurring in the course of business operations, record it in the accounts, and ultimately form reliable reports for stakeholders such as state authorities, investors, tax agencies, creditors, and management. management accounting, in contrast, serves the needs of executives, department heads, and managers. its main purpose is to provide an in-depth analysis of the company’s current state, identify strengths and weaknesses, enable rapid decision-making, and support accurate future planning. today, management accounting is no longer viewed as a supplementary calculation system but as a key management tool that enhances efficiency, identifies sources of profit, and facilitates rational use of resources. the core functions of management accounting include: analysis of financial flows – tracking revenues and expenses in real time, effectively distributing and optimizing cash flows to increase liquidity and prevent unexpected difficulties. cost management – detailed recording of expenses related to production, transport, services, infrastructure, advertising, and energy use, enabling reductions of unnecessary costs and the development of cost-saving measures. profitability assessment – evaluating each product or service type separately, calculating profits and losses, and identifying the most profitable activities to determine strategic priorities. forecasting and planning – preparing financial projections for investment projects, expansion of production capacity, or growth of transport services, thereby helping management anticipate risks and allocate resources effectively. risk management – controlling risks such as declining demand, rising resource prices, disruptions in transport, or technical failures through accounting systems, thus ensuring company stability. management accounting, as an integral part of ifrs, functions as an information system that supports efficient organization of operations, rational use of resources, and adoption of strategic decisions. it covers not only financial indicators but also production, service delivery, marketing, human resources, and customer relations. in modern economic conditions, management accounting is regarded as an inseparable part of corporate governance, as it enables not only reporting but also in-depth process analysis, determination of development strategies, and identification of opportunities for effective resource utilization. railway transport is one of the strategic sectors of uzbekistan’s economy, playing a vital role in organizing export-import operations, domestic logistics, and passenger transportation, as well as meeting the country’s overall transport demand. reforms in uzbekistan’s railway sector have systematically reached a new stage. presidential resolution №329 is aimed at strengthening the sector financially and institutionally. the resolution pays special attention to strengthening financial discipline in the railway system, modernizing american journal of business management, economics and banking volume 42 november2025 p a g e | 8 www.americanjournal.org management, and accelerating the implementation of accounting practices in line with international standards. in this regard, digital accounting systems, ai-based management platforms, and modern logistics centers are being introduced. as a result, accounting is evolving from a mere reporting instrument into a strategic source of information that underpins managerial decision-making. the organization of management accounting enables effective corporate governance, adoption of sound strategic and tactical decisions, and rational utilization of resources. furthermore, it helps management maintain financial stability, control costs, and expand revenue sources. in our view, creating a balanced scorecard system in management accounting is of particular importance, as it reflects both the financial and non-financial aspects of enterprise activity in an integrated manner. this system supports information flow structuring, monitoring, and evaluation of managerial decisions. it forms a multi-level management model based on modern approaches, taking into account operational, resource, and efficiency factors within the internal environment, as well as the changing economic and market conditions of the external environment. based on our proposals, we suggest that management accounting at “uzbekistan railways” jsc be organized around six key components of the balanced scorecard: key performance indicators – overall company performance such as annual freight volume (million ton-km), passenger traffic (million passenger-km), turnover of working capital, production volume, net profit from core activities, asset and capital profitability, income-to-expenditure ratio, state investment projects, opening of new routes, growth of transit traffic, and increases in export-import transportation. this serves as a general “diagnostic panel” for management. operational indicators – analysis of freight and passenger transport (domestic, international, express trains), logistics, forwarding, terminal, and container services; revenue dynamics (monthly and yearly), demand at border crossings, wagon turnover, locomotive productivity, and infrastructure capacity. this helps determine which business segments are most profitable and where to focus development efforts. efficiency of rolling stock utilization – measuring locomotive and wagon mileage, downtime, wagon turnover, average daily distance, locomotive productivity, and empty run percentages. these indicators reveal the degree of efficiency in transport fleet usage and directly affect financial results. service quality indicators, such as punctuality and customer satisfaction, are also key. labor resource efficiency – including labor productivity, staff turnover, working time utilization, kpi-based individual performance measurement, overtime analysis, and night-shift work monitoring. these indicators ensure efficient workforce management and productivity growth. unrealized revenue and losses – arising from factors such as idle rolling stock, unfulfilled demand, delayed services, competition-driven traffic loss, accidents, and technical failures. both missed revenues and direct losses are systematically analyzed to strengthen operational resilience. cost management indicators – particularly fuel and energy consumption, which form the largest share of operational costs in railway transport. detailed monitoring, optimization, and control of these expenditures are crucial for competitiveness and sustainability. american journal of business management, economics and banking volume 42 november2025 p a g e | 9 www.americanjournal.org state-owned enterprises, including uzbekistan’s railway sector, are actively adapting to international standards by engaging major global audit firms (“big four”). this has improved both external audits and internal control mechanisms, providing reliable information for decision-making and enhancing transparency for foreign investors the resource planning and integration (rpi) system is a modern information mechanism for integrated enterprise management, consolidating various functions such as finance, logistics, maintenance, and supply into a single platform. it ensures accurate resource planning, eliminates unnecessary expenses, and provides real-time monitoring and alerts (e.g., fuel consumption overruns). the rpi system, integrated with 1c accounting, supports automated and transparent reporting, thereby improving efficiency and decision-making. finally, the balanced scorecard approach enhances the accuracy, timeliness, and multi-dimensional nature of managerial information. it evaluates not only financial results but also non-financial aspects such as customer relations, internal process efficiency, human capital capacity, and compliance with quality standards. we believe that this system, adapted to modern organizational needs, provides an effective management tool for enterprises operating in rapidly changing and strictly regulated industrial environments. conclusion the reforms being carried out in the development of the transport system of the republic of uzbekistan, particularly the profound changes in the railway sector, necessitate a fundamental renewal of the management accounting system. organizing management accounting and financial reporting in accordance with international financial reporting standards (ifrs) is important not only for optimizing internal management processes but also for strengthening international economic integration. the adaptation of the management accounting system in railway transport to ifrs has opened up a range of new opportunities for the sector. in particular, the application of the balanced scorecard increases management efficiency, ensures rational use of resources, and allows for strict control in reducing costs from maximum to minimum levels. it also helps minimize locomotive downtime and unprofitable operations, while digital transformation enables automation of accounting processes, providing speed, accuracy, and in-depth data analysis. moreover, since ifrs-based reporting complies with international requirements, it increases the confidence of foreign investors. this process creates a solid foundation for strategic development and ensures the sustainable growth of the railway transport system. references 1. kaplan, r. s., & norton, d. p. (1996). the balanced scorecard: translating strategy into action. harvard business school press. 2. drury, c. (2018). management and cost accounting. cengage learning. 3. album, n., & albu, c. n. (2012). the impact of ifrs adoption in romania: evidence from the banking sector. 4. accounting and management information systems, 11(2), 198–227. 5. international federation of accountants (ifac). (2020). handbook of international public sector accounting standards. ifac. 6. world bank (2021). accounting and auditing in uzbekistan: rosc report. washington, dc. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 149 www.americanjournal.org the experience of attracting investments to uzbekistan: the u.s. experience and its significance otajonova charoskhon polvonquli qizi tashkent state university of economics 2nd-year phd candidate orcid: 0009-0000-6841-8487 phone: +998978512277 e‑mail: otajonovacharosxon@mail.ru a b s t r a c t k e y w o r d s this article studies the experience of the united states of america in attracting foreign investments to the republic of uzbekistan and, in order to understand more deeply the significance of this experience for improving uzbekistan’s investment climate, the u.s. investment position is analysed from statistical, economic and financial perspectives. the article analyses the successful u.s. strategies in the field of investment and, on the basis of statistical and practical data, recommends promising directions that can be implemented in uzbekistan. gross domestic product, economic growth, investment, foreign direct investment, foreign experience, economic reforms, free economic zones, investment attractiveness, investment efficiency. introduction investment is considered one of the main factors of economic growth. world experience shows that, in order to manage and attract investment flows effectively, the legal, economic and institutional foundations in a country must be strong. in recent years uzbekistan has been carrying out rapid economic reforms and striving to create even more favourable conditions for foreign investments. the interest of foreign investors in the uzbek economy has been increasing year by year. the reason for this is the favourable investment environment and opportunities being created for investors. according to the world bank’s “doing business 2020” report, uzbekistan rose by 7 positions in 2019, taking 69th place. the volume of foreign direct investment attracted to uzbekistan amounted to usd 10.5 billion in 2023 (data of the ministry of investments, industry and trade of the republic of uzbekistan). we will examine the experience of foreign countries in attracting foreign investments to the economy of uzbekistan. as the object of the research we chose the investment environment of the united states of america. the reason for choosing the u.s. as an example is its stable economic development: it occupies the first place in the world not only in terms of gdp but also in the volume of attracted foreign direct investments. as an example, in 2023 the gdp of the united states amounted to american journal of business management, economics and banking volume 35 april 2025 p a g e | 150 www.americanjournal.org usd 27.720 trillion, while the volume of foreign direct investments introduced into the country’s economy reached usd 5.394 trillion, occupying first place in the world in both directions (fund, n.d.). figure 1. volume of foreign direct investments in the top‑10 countries, in billions of u.s. dollars the experience of the united states in attracting foreign direct investments is considered one of the most successful models in the world. below are the main approaches and important aspects of the u.s. experience in attracting foreign direct investments: possession of a highly developed legal and institutional system. in the u.s. the rights of investors are strictly protected. an independent judicial system, transparent legislation and guaranteed property rights create a firm climate of confidence for foreign investors. market economy and an effective competitive environment. a free‑market economy operates in the u.s., which allows companies to compete freely. the large size of the market (a large number of domestic consumers) further increases attractiveness for foreign companies. infrastructure and logistics system. modern transport, communications and energy infrastructure exist. this helps investments to operate efficiently. human capital and scientific potential. there is a skilled labour force and strong research institutes. technological innovations, especially in areas such as silicon valley, are at a high level. supportive policies at federal and state levels. each state has its own investment policy: tax incentives, subsidies, grants and others. the selectusa programme – a federal initiative to encourage foreign investments – has further increased investor interest in the u.s. openness to international investors. many sectors in the u.s. are open to foreign investors (only certain security‑related areas are controlled). foreign companies enjoy almost the same rights as domestic u.s. companies. american journal of business management, economics and banking volume 35 april 2025 p a g e | 151 www.americanjournal.org when analysing the investment position of the united states, a number of economic indicators are considered statistically and economically, such as: the volume of gross domestic product and its growth rates; the volume of direct investments and its share in gross domestic product (as a percentage); the growth rates of investments attracted to the economy (in percentage terms); sectoral analysis of the investments introduced into the country’s economy. analysing these indicators helps to assess how effective investment projects are in the country. figure 2 presents the gdp volume in the u.s. and the volume of foreign direct investments, as well as their share in gdp for 2018‑2023, according to which: in 2023 gdp increased by 6.6 percent compared to 2022 and by 34.17 percent compared to 2018. from 2018 to 2023 stable economic growth indicators have been recorded in the u.s. economy. in recent years the annual inflow of foreign direct investments reached usd 5.4 trillion by the end of 2023 (measured at historical cost). this is a 29 percent increase since 2018. we can see that the share of foreign direct investments in gdp has slightly decreased in the last two years (america, n.d.). figure 2. gdp and the volume of foreign direct investments in the united states, 2018– 2023 (trillion u.s. dollars) in 2023 four countries provided the main share of the total usd 5.4 trillion of foreign direct investments attracted to the united states. they are japan, canada, germany and the united kingdom. japan became the largest foreign investor, accounting for 15 percent of the total cumulative holdings of foreign direct investments. 14 percent of foreign direct investments attracted to the u.s. economy fall to canada, which did not lag behind as the second‑largest investor, followed by germany with 12 percent. until 2018 the united kingdom was the largest investor in the united states, but in 2023 it fell to fourth place with investments of usd 636 billion (america, n.d.). in 2023 three quarters of the total volume of foreign direct investments in the united states were formed by eight countries shown in figure 3. the remaining share was formed by more than 100 other 20.66 21.54 21.35 23.68 26.01 27.72 4.2 4.4 4.6 5.1 5.2 5.4 20.32 20.42 21.54 21.53 19.99 19.48 0 5 10 15 20 25 30 2018 2019 2020 2021 2022 2023 gross domestic product trillion us dollars foreign direct investment trillion us dollars foreign direct investment as a percentage of gdp american journal of business management, economics and banking volume 35 april 2025 p a g e | 152 www.americanjournal.org countries. in this analysis, the data are shown by the ultimate beneficial owner country, which reflects the true ownership of the foreign firm in the united states (america, n.d.). figure 3. foreign direct investments introduced into the u.s. economy in 2023, by countries investments by international companies have been attracted to all sectors of the u.s. economy. according to the data in figure 4, the volume of investments attracted to the manufacturing sector in 2023 amounted to usd 2.2 trillion, constituting 41 percent of total foreign direct investments. because the united states has the largest and most liquid financial markets in the world, international companies invested heavily in u.s. finance and insurance, reaching usd 574 billion by the end of 2023 – more than 20 percent growth since 2018 (america, n.d.). wholesale trade was another sector with high investment volumes in 2023. by the end of 2023, 24.3 percent of total foreign direct investments were directed to wholesale trade. the information sector attracted usd 261 billion, banking usd 239 billion, and professional, scientific and technical services usd 239 billion of foreign direct investments (america, n.d.). american journal of business management, economics and banking volume 35 april 2025 p a g e | 153 www.americanjournal.org figure 4. sectoral volume of foreign direct investments introduced into the u.s. (billion u.s. dollars) foreign direct investments are of great importance for the economy of any country. such investments not only ensure capital inflows but also bring advanced technologies, modern management experience and new jobs. the united states is one of the world leaders in actively attracting fdi, and the role of the select usa programme in this success is invaluable. select usa programme establishment and purpose. the select usa programme was established in 2011 on the initiative of president barack obama. operating under the u.s. department of commerce, its main purpose is to attract foreign investments to the united states and create a favourable environment for them. the programme pursues the following goals: creating new jobs by increasing foreign direct investments; providing assistance to foreign companies wishing to operate in the united states; acting as a bridge between states and investors. the main areas of activity of the select usa programme are: providing information and consultations. select usa supplies foreign investors with necessary information about the u.s. economy, legal system, taxation and procedures. companies can also receive individual advice. cooperation with states. investment opportunities differ in each u.s. state. selectusa connects investors with the necessary state and industry representatives. reducing bureaucratic barriers. the programme cooperates with various state agencies to simplify permits, licences and other legal issues encountered by foreign investors. select usa investment summit. held annually, this event is one of the largest investment conferences in the u.s., where hundreds of foreign companies and u.s. state representatives participate. the summit is a platform for real deals and dialogue with investors. american journal of business management, economics and banking volume 35 april 2025 p a g e | 154 www.americanjournal.org results and effectiveness of the selectusa programme: since 2011 thousands of companies have received assistance through the programme. it has contributed to the creation of hundreds of thousands of new jobs. billions of dollars in foreign direct investments have been attracted. several aspects of the selectusa programme can be useful experience for uzbekistan: creating a centralised platform that provides investment support; offering services for investors on the principle of a "single window"; improving the country's image by holding an international investors’ conference every year; supporting independent investment strategies at the level of regions or provinces. conclusion world experience shows that it is important to create a favourable legal, economic and institutional environment to attract investments. uzbekistan can use the u.s. experience in the following directions when attracting foreign direct investments: creating legal stability and guarantees for investors; developing special economic zones; developing incentive mechanisms at the level of territories and regions; creating information platforms that reflect the investment climate; attracting investments to the development of human capital. strengthening free economic zones. currently, several free economic and small industrial zones operate in uzbekistan, but their infrastructure and governance need to be modernised further. improving tax and customs policy: aligning with international standards and providing long‑term guarantees to investors. strengthening the legal basis: expanding the possibilities for protecting investor rights through international arbitration. enhancing the activities of investment service agencies: for example, developing "uzbekinvest" and "invest in uzbekistan" agencies based on foreign experience. references 1. dani rodrik – one economics, many recipes: globalization, institutions, and economic growth. princeton university press, 2007. 2. x.x. imomov. investitsiya. (textbook). – t.: "innovatsion rivojlanish nashriyot‑matbaa uyi", 2022, 408 p. 3. bekmurodov a.sh., karrivcva ya.k., nematov i.u., nabiyev d.h., kattayev n.t. foreign investments: study guide. – t.: iqtisodiyot, 2010. 4. mustafakulov sh.i. investment climate attractiveness. scientific‑practical guide. – tashkent: baktria press, 2017, 320 p. 5. https://globalbusiness.org/foreign-direct-investment-in-the-united-states-2024/ – global business alliance: investing in america. 6. https://www.bea.gov/data/intl-trade-investment/new-foreign-direct-investment-united-states – official website of the united states government. american journal of business management, economics and banking volume 35 april 2025 p a g e | 155 www.americanjournal.org 7. https://www.imf.org/en/blogs/articles/2025/02/20/foreign-direct-investment-increased-to-arecord-41-trillion – international monetary fund. 8. https://www.adb.org/outlook/editions/april-2025 – asian development bank. 9. https://data.worldbank.org/indicator/ny.gdp.mktp.cd?locations=us – world bank open data. 10. usa – data commons. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 174 www.americanjournal.org the formation of the eurodollar market (euromarket) and its impact on financial integration processes in the eu alimardonov elshod dilshodovich professor of the “international finance” department at tashkent state university of economics a b s t r a c t k e y w o r d s this article describes main current trends and features of the eurodollar market, the basic terms and principles providing the formation of a single market and the financial sector in the european union, in addition, on the basis of result of research in this market given practical recommendations and scientific proposals for the sustainable development of the national financial market. money and loan market, euromarket, eurocurrency, euroloan, financial innovation, securities, eurosheet, international capital market association. introduction in the international loan capital market, the euro-market plays a significant role due to its size, scale, freedom, favorable conditions for the emergence of financial innovations, and the wide range of conveniences it offers to market participants. it enables the effective redistribution of financial resources across the globe, provides new ways to address problems that arise during imbalances in external payments, offers important tools for economic agents to hedge against risks, enhances competition in the global financial market, and stimulates improvements in the quality and reduction in the cost of services provided by financial and credit institutions. the development of the euro-market and global financial integration are among the key elements that positively contribute to the progress of the world economy. today, the main centers of the global euromarket are london, zurich, frankfurt am main, and paris. in the presidential decree no. pf-158 dated september 11, 2023, on the strategy “uzbekistan – 2030,” goal 92, to be achieved by 2030, sets as a key performance indicator: “development of trade-economic, financial, investment, and technological cooperation with european countries and further strengthening of the legal framework for broad partnerships and practical collaboration” [1]. this, in turn, necessitates the study of modern trends in the development of european financial markets. literature review marsel fratzscher has conducted an in-depth study on financial market integration in europe, particularly focusing on the impact of the economic and monetary union (emu) on securities markets. american journal of business management, economics and banking volume 37 june2025 p a g e | 175 www.americanjournal.org analyzing the integration process of european securities markets since the 1980s, fratzscher emphasized the influence of exchange rate volatility on financial integration. utilizing a garch model based on the interest rate parity condition, the study identifies three major findings: first, european securities markets only became highly integrated after 1996; second, the eurozone has gained dominance in global financial markets, overtaking the u.s.; and third, integration was largely driven by the elimination of uncertainties related to exchange rate fluctuations and monetary unification. [2] afzal hussain, sitora karim, and ahmet sensoy investigated financial harmony by exploring the integration of islamic and green investments in european stock markets. their research, considering the distinct characteristics of islamic and green financial instruments compared to conventional finance, revealed that under increasing uncertainty, the interconnectedness between green and islamic finance and the broader european financial market has grown. [3] giuliana birindelli, helen chiappini, and raja nabil-ud-din jalal examined the sustainable finance disclosure regulation (sfdr), investor attention, and the condition of european financial markets. focusing on 2019–2022, the study analyzed whether investor attention to the sfdr drives the european financial markets and concluded that investors show strong predictive behavior, particularly under declining or stable market conditions. [4] krina pungulesku attempted to measure financial market integration in the european union (eu), comparing eu-15 countries with new member states and emerging markets. using indicators from credit and bond markets, equity markets, and household and firm-level decisions, the study quantified financial integration and compared developments before and after the eu’s eastern enlargement. [5] marisica moscalu, claudia girardone, and raffaella calabrese analyzed banking market integration in the euro area and its impact on sme growth under financial constraints. their findings indicate that while financing constraints limit sme growth, greater banking integration in the euro area fosters the development of these enterprises. [6] sonia kumari selvarajan and rossazana ab-rahim explored whether asia should follow europe’s model in financial integration and economic growth. they concluded that the asian financial crisis (1997–1998) acted as a catalyst for regional cooperation. the study assessed financial integration during preand post-crisis periods (1980–1995 and 1998–2015), suggesting that each asian country should develop its financial integration strategy by learning from the eu's experience. [7] k. smimou and v. hallouli investigated the dynamic relationship between stock market liquidity and business cycles under the influence of the euro. based on data from 10 eurozone countries and the uk, the study found that post-euro adoption, liquidity significantly improved across most countries, aligning with periods of high economic growth. [8] mihai nişoi and maria miruna pochea analyzed financial market convergence in central and eastern europe using a nonlinear single-factor model (phillips and sul, 2007). their findings suggest significant divergence among cee countries’ financial markets, and highlight the need for structural reforms to achieve convergence. [9] nikolay apergis, kristina christou, and iason kynigakis studied the link between financial market instability in the u.s. and europe during the global financial crisis using credit default swap (cds) data. using correlation, coskewness, cokurtosis, and covolatility measures, they evaluated systemic risk transmission across banks, sovereigns, and equity indices. [10] american journal of business management, economics and banking volume 37 june2025 p a g e | 176 www.americanjournal.org jussi nikkinen, vanja piljak, and timo rothovius explored the effects of the 2008–2009 financial crisis on the internal and external linkages of frontier european stock markets (e.g., croatia, estonia, romania, slovakia, and slovenia). their results indicate strengthened external linkages during the crisis and identify limited internal linkages, suggesting potential for diversification within these markets. [11] wojciech grabowski, jakub janus, and ewa stawasz-grabowska examined the impact of macroeconomic policies and international policy spillovers on financial markets in central europe (czech republic, hungary, and poland) during the covid-19 pandemic. their research revealed that unconventional monetary policies and fiscal stimulus played a key role in stabilizing financial markets, especially long-term sovereign bond yields. [12] shihong zeng, jingmin jia, bin su, chunxia jiang, and guowang zeng studied volatility spillovers in the european union carbon finance markets. their findings offer deeper insights for investors and carbon market operators into the transmission of information and risks between the eu allowance (eua) and certified emission reduction (cer) markets, thereby supporting investment decisions and policymaking. [13] research methodology in the process of scientifically studying, analyzing, and researching the topic, methods such as induction and deduction, systematic analysis, statistical analysis, and scientific abstraction were thoroughly employed. in particular, based on the method of scientific abstraction, conclusions were drawn regarding the formation of the euro-market under the conditions of financial integration within the european union. in accordance with these conclusions, scientific proposals and practical recommendations were developed aimed at ensuring the sustainable development of the financial market in our country. analysis and results according to our research, the global loan capital market is represented by the euro-market, which includes eurocurrencies and mediumand long-term eurocredit markets (see figure). the first eurodollars appeared in the late 1950s, based on interbank correspondent relations, when the holder of a deposit in us dollars transferred their deposit from an american bank to a foreign bank. in practice, this gave rise to eurodollars. the transformation of us dollars into eurodollars is characterized by the fact that deposits denominated in us dollars placed in foreign banks can be used as credit resources in all countries except the united states. from the 1960s onwards, the eurocurrency market began to include not only the us dollar, but also the currencies of other leading countries in the global economy. in our opinion, the eurocurrency market has developed due to the following factors: – the provision of large-scale international loans by the united states after world war ii to restore economic conditions and stimulate the development of national economies in europe and other regions of the world, which led to an increase in the positive balance of payments in european countries and the accumulation of eurodollars in the region; – as a result of the decline in interest rates in the united states in 1957 and the suspension of interest payments on demand and 30-day deposits, many investors preferred to place their us dollar funds in banks abroad. in addition, the united kingdom imposed strict controls on lending in pounds sterling american journal of business management, economics and banking volume 37 june2025 p a g e | 177 www.americanjournal.org to non-residents to improve its balance of payments, which led british banks to intensify their financing operations in us dollars; – in the 1950s–1960s, the introduction of free convertibility of leading global currencies and the liberalization of national legislation in various countries encouraged local banks and firms to deposit their funds in foreign banks for profit-making purposes; – in the 1970s, due to the rise in oil prices, oil-producing and exporting countries accumulated large amounts of us dollars, which were placed as deposits in the euro-market; – in 1981, the establishment of a free banking zone in new york—where the regulatory regime for banking operations with non-residents closely resembled the procedure for eurocurrency transactions—led to the integration of the us into the eurodollar market; – the increasing need to expand international currency and credit services in foreign economic activity. picture 1. forms of manifestation of the euro market in the world loan capital market today, the term “eurocurrency” is also used to refer to us dollars circulating in asia (asian dollars), in arab countries (arab dollars), and in oil trade transactions (petrodollars). our research shows that the main modern trends in the development of the european financial market are manifested in the following areas (see table 1). short-term transactions from 1 day to 1 year global debt capital market global money market global capital market medium and long-term foreign loans eurocurrency market medium and long-term euro loans market eurtomarket american journal of business management, economics and banking volume 37 june2025 p a g e | 178 www.americanjournal.org table 1 volume of european financial market development (in billions of euros) years g d p ( c u rr e n t p ri ce s) d e b t se c u r it ie s l is te d s h a r e s l o a n s (n o t in t h e f o r m o f se c u ri ti e s) financial account of the balance of payments g ro ss e x te r n a l d e b t a ss et s l ia b il it ie s n e t r e si d u e 2015 10 534,20 16 518,80 6 814,40 11624,70 22 235,20 23 309,60 -1 074,40 13 003,10 2016 10 817,00 16 613,80 7 089,50 11791,70 23 982,90 24 780,00 -797,10 13 782,10 2017 11 216,70 16 593,20 7 950,70 11905,10 24 835,50 25 544,20 -708,70 13 898,70 2018 11 600,20 16 962,70 7 023,40 12130,00 25 399,70 25 891,30 -491,60 14 197,40 2019 11 986,30 17 598,10 8 586,60 12431,00 27 826,30 27 882,00 -55,70 14 759,20 2020 11 456,50 20 999,40 8 500,90 12913,70 28 366,30 28 991,00 -624,70 14 854,70 2021 12 577,50 21 327,50 10 357,60 13 334,80 32 242,90 32 211,00 31,90 15 928,90 2022 13 652,20 19 247,60 8 701,90 13 994,80 31 081,70 30 739,00 342,70 15 753,90 2023 14 499,90 21 067,60 9 675,20 14 031,70 32 517,90 31 962,80 555,10 16 156,20 2024 (semiannual) 7456,4 22 142,30 10 413,80 14 115,40 34 349,20 33 170,40 1 178,80 16 520,40 according to the statistical analysis results for the period 2015–2024, the scale of the financial market relative to gdp in the eurozone reaches approximately 330%. of this, over 150% corresponds to debt securities in circulation, around 70% to the turnover of listed shares, and more than 100% to loans (non-securitized credit). the gross external debt volume, on average, exceeds 120% of the eurozone gdp during this period. according to the financial account analysis of the balance of payments in eurozone countries, over the past three years, a positive balance averaging 3–4% of gdp has been observed, while the assets and liabilities of the financial account separately amount to an average of 230% relative to gdp. our research reveals the following distinct characteristics of the eurocurrency market that differentiate it from regional and national markets: large-scale financial flows are carried out in international units of account (particularly sdr, euro, and us dollar) and freely convertible currencies. a universalization of foreign exchange and credit operations takes place. in euro market transactions, the most advanced communication and information technologies are used. the credibility of transactions is often based on the reputation, market position, or high international credit ratings (aaa) of counterparty banks. the participation of small and medium-sized borrowers in this market is limited. the institutional basis of the euro market consists of transnational banks (tnbs) that conduct various financial operations through their branches in multiple countries. eurocurrency transactions tend to be more profitable than those in national currencies. specifically, eurodeposits generally offer higher interest rates, while euroloans come with lower rates compared to domestic markets. this is because the euro market functions as a global wholesale credit market, without reserve requirements at central banks for eurodeposits, and operates outside the jurisdiction of any specific country’s tax or foreign exchange control systems. american journal of business management, economics and banking volume 37 june2025 p a g e | 179 www.americanjournal.org several types of euro market operations can be distinguished, such as loan issuance, short-term transactions, and eurobond issuance, among others. a unified european capital market has gradually emerged in the european union, primarily due to the following principles introduced by the eu: permission for the unification of banking activities; liberalization of information exchange and entrepreneurial activity; supervision of market participants based on country of origin; creation of a unified system for inter-exchange information exchange. as a result, any company in the eu has gained the opportunity to freely buy or sell securities within the region, and brokers can operate freely across exchanges within the eu. additionally, capitalization of stock exchanges in the region has increased, and competition in over-the-counter securities trading has intensified. our research shows that the following developments played a critical role in unifying stock markets across the eu: the establishment of the euroclear clearinghouse in 1968 for eurobond trading; the creation of the association of international bond dealers (aibd) in 1969 to address technical and organizational challenges in the secondary market for eurobonds; the founding of cedel (now clearstream) in 1970, euroclear’s main competitor; the launch of eurolist in 1990, which reflects prices of blue-chip securities listed on eu exchanges; the formation of the federation of european securities exchanges; the transformation of aibd into the international securities market association (isma) in 1991 and later into the international capital market association (icma) in 2005. [16] in addition, to create a common financial environment, the eu has progressively eliminated key differences between national financial markets, including: the regulation of exchange operations at the national level (e.g., listing requirements, disclosure obligations); the volume of operations on exchanges and their role in the national economy; differences in institutional investors (such as insurance companies, pension funds, investment funds, and banks) and their participation in securities markets. the unified eu capital market includes segments specializing in shares, bonds, government securities, and derivative financial instruments, as well as newly formed joint stock exchanges and other platforms. we believe that the creation of a unified credit and securities market in europe played a pivotal role in building european economic integration. currently, the following major changes are occurring in the infrastructure of global stock markets: firstly, dedicated trading platforms are being created for foreign participants; secondly, although the role of banks in global securities markets is shrinking in favor of other financial intermediaries, banks are establishing private electronic brokerage systems that enable continuous trading and anonymous pricing even after official exchange hours. they are also innovating new types of financial instruments. american journal of business management, economics and banking volume 37 june2025 p a g e | 180 www.americanjournal.org conclusion based on the results of the conducted economic analysis, we believe that the following priorities should be taken into account when developing strategic directions for the stable development of our country's financial market: to enhance the country's international financial competitiveness, it is essential to unify the operations of financial exchanges, develop a methodology for assessing operational risks in the banking and financial sector, and introduce more instruments aimed at increasing the liquidity and capitalization of credit institutions. further liberalization of the national financial market and expansion of conditions for encouraging digital and innovative activities in the sector are necessary to foster a dynamic and competitive financial environment. to accelerate the inflow of foreign direct investment (fdi), it is crucial to improve the country's sovereign credit rating awarded by international rating agencies, thereby obtaining a higher international investment-grade rating. the mechanisms of insuring against losses in international financial transactions and improving foreign exchange regulations should also be strengthened to enhance resilience and investor confidence. in conclusion, the euro market plays a vital role in the global economy by ensuring the free movement of financial resources, promoting their efficient allocation, stimulating innovation, and contributing significantly to the development of the international financial system. 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global finance journal. volume 46, november 2020, 100481. https://www.sciencedirect.com/science/article/pii/s1044028318302114 12. wojciech grabowski, jakub janus, ewa stawasz-grabowska. the covid-19 pandemic and financial markets in central europe: macroeconomic measures and international policy spillovers. emerging markets review. volume 54, march 2023, 100991. https://www.sciencedirect.com/science/article/pii/s156601412200108x 13. shihong zeng, jingmin jia, bin su, chunxia jiang, guowang zeng. the volatility spillover effect of the european union (eu) carbon financial market. journal of cleaner production. volume 282, 1 february 2021, 124394. https://www.sciencedirect.com/science/article/pii/s0959652620344395 14. https://www.sciencedirect.com 15. https://www.ecb.europa.eu/press/economic-bulletin/html/index.en.html -ecb economic bulletin, issue 7-8 / 2016-2024 – statistics 16. https://www.icmagroup.org/about-icma/history/ https://www.sciencedirect.com/science/article/abs/pii/s0939362516300334 https://www.sciencedirect.com/science/article/pii/s0261560619302384 https://www.sciencedirect.com/science/article/pii/s1044028318302114 https://www.sciencedirect.com/science/article/pii/s156601412200108x https://www.sciencedirect.com/science/article/pii/s0959652620344395 https://www.sciencedirect.com/ https://www.ecb.europa.eu/press/economic-bulletin/html/index.en.html https://www.icmagroup.org/about-icma/history/ american journal of business management, economics and banking issn (e): 2832-8078 volume 28, | september 2024 p a g e | 48 www.americanjournal.org convergence technologies in the financial sector: implications for trade finance and international integration azizbek tokhtabaev financial analysis expert, “cloud kitchens” start-up company tokhtabaevazizbek@gmail.com a b s t r a c t k e y w o r d s convergence technologies such as blockchain, artificial intelligence (ai), digital payments, crowdfunding, and peer-to-peer (p2p) lending are transforming the global financial sector. these innovations accelerate trade finance, reduce risks, and promote financial inclusion by offering new tools for import–export operations. this paper examines the role of these technologies in global trade finance, highlights international experiences from the united states, china, the united kingdom, and japan, and analyzes uzbekistan’s position. the study also explores the challenges uzbekistan faces in adopting such innovations, including limited access to export credit insurance, underdeveloped fintech infrastructure, and currency risks. using recent global data and trade figures, policy recommendations are proposed to enhance uzbekistan’s competitiveness in the international market. capital, adequacy, banking, stability, risk management, profitability, indicators, roa, roe, monetary policy, basel iii standards, liquidity management, uzbekistan banking sector. introduction the financial sector is undergoing rapid digital transformation. convergence technologies—defined as the integration of blockchain, ai, the internet of things (iot), cloud computing, and digital financial platforms—are increasingly central to financial modernization. collectively, these technologies reduce transaction costs, expand access to finance, and create transparent mechanisms for cross-border trade. for developing economies such as uzbekistan, trade finance plays a pivotal role in supporting growth and global integration. yet reliance on conventional banking instruments often results in delays, high costs, and limited access to credit for small and medium-sized enterprises (smes). convergence technologies provide alternative pathways to overcome these barriers by enabling faster payments, facilitating digital credit, and introducing secure mechanisms for international trade operations. as shown in figure 1, the global market for crowdfunding and p2p financing illustrates the scale of this transformation. the global p2p financing market alone is projected to rise from approximately usd 300 billion in 2023 to over usd 1 trillion by 2028, while the crowdfunding market is expected to more than double in the same period. these trends underscore the urgency for developing economies to adopt such tools in order to remain competitive in global trade. american journal of business management, economics and banking volume 28 september 2024 p a g e | 49 www.americanjournal.org figure 1. global, us and china crowdfunding and p2p financing market size (usd billions) 2. blockchain and smart contracts in trade finance a primary obstacle in international trade finance is the lack of transparency and trust in transactions. blockchain directly addresses this challenge by providing a distributed ledger system that ensures immutability, transparency, and security. in practice, blockchain enables digital rather than paperbased documentation, while smart contracts—self-executing agreements embedded in the blockchain—automatically enforce terms once pre-set conditions such as shipment confirmation or customs clearance are met. the benefits are evident: faster settlement of transactions, lower administrative costs, and reduced exposure to fraud. internationally, banks and state institutions are already piloting blockchain to secure data storage, facilitate customs, and authenticate trade flows. importantly, blockchain’s utility is not limited to cryptocurrency. its broader role is as a decentralized digital registry where financial and logistical data can be securely stored and accessed. for uzbekistan, blockchain adoption could transform customs clearance and export documentation, two areas where inefficiencies and informal practices remain entrenched. by introducing blockchainbased platforms, exporters could receive faster payments, reduce disputes, and integrate more seamlessly into global supply chains. yet while blockchain strengthens trust and efficiency, it does not directly provide firms with the capital needed to expand exports. for this, broader fintech services become essential. 3. fintech services and digital payments where blockchain primarily enhances transparency and reliability, fintech extends access to finance itself. broadly defined as the application of digital technologies in financial services, fintech is now one of the fastest-growing global industries, generating usd 310 billion in revenue in 2023 with projections surpassing usd 500 billion by 2025. 0 200 400 600 800 1000 1200 global p2p financing market us, china, and uk p2p financing global crowdfunding market us and china crowdfunding market 2023 (usd billion) 2028 (usd billion) american journal of business management, economics and banking volume 28 september 2024 p a g e | 50 www.americanjournal.org fintech services include mobile wallets, instant payments, digital lending, robo-advisors, and aidriven risk assessment. their transformative potential lies in financial inclusion: by reducing reliance on brick-and-mortar banking, they enable smes and individuals previously excluded from formal finance to participate in both domestic and international markets. governments benefit as well, through digital tax systems, e-government platforms, and faster customs payments. table 1 highlight five categories—payments, lending, investment and savings, insurtech, and regtech—that together form the backbone of modern digital finance. table 1. main types of fintech services category description payment and money transfers provides the ability to make fast and low-cost payments and money transfers through mobile applications and online platforms. lending platforms offers opportunities to obtain and provide loans through online platforms beyond traditional banks. investment and savings services allows investment, savings management, and financial planning through digital platforms. insurance technologies (insurtech) digitalizes and automates insurance services, creating convenience for customers. regulatory technologies (regtech) provides digital solutions to help financial institutions comply with legal and regulatory requirements. uzbekistan has begun to lay the groundwork for fintech expansion. by 2022, more than half of government services were available online via my.gov.uz, serving over 1.3 million citizens. internet penetration reached 27.2 million users in early 2023, a foundation for rapid adoption of digital platforms. nevertheless, cross-border trade finance solutions remain scarce, and integration with global payment systems is incomplete. fintech thus builds upon blockchain’s foundation of trust by expanding access, but smes still require direct financing channels to overcome credit shortages. this is where crowdfunding and p2p platforms play a complementary role. 4. crowdfunding and peer-to-peer financing crowdfunding and p2p financing represent alternative models that bypass traditional banks. crowdfunding mobilizes small contributions from a large number of individuals, while p2p directly connects borrowers and lenders via digital platforms. these models are particularly valuable for smes and startups that often struggle to access credit from conventional banks. globally, the crowdfunding market reached usd 114 billion in 2023, while p2p lending exceeded usd 300 billion. both markets are projected to expand dramatically by 2028, as shown in figure 1. the united states, china, and the united kingdom dominate this sector, offering practical models of how digital platforms can channel private capital into productive trade activities. for uzbekistan, these tools could provide smes with a vital bridge to international investors. by leveraging crowdfunding and p2p lending, firms can bypass domestic credit shortages and access global capital pools. this complements the transparency of blockchain and the accessibility of fintech, together forming a convergence ecosystem that reshapes trade finance. to better understand how these elements interact, it is useful to examine international experiences. american journal of business management, economics and banking volume 28 september 2024 p a g e | 51 www.americanjournal.org 5. international experiences the experience of leading economies demonstrates that the successful modernization of trade finance requires a combination of technological innovation and strong institutional support. in the united states, the export–import bank (ex-im) plays a central role by providing credit, guarantees, and political risk insurance. in 2023 alone, ex-im issued usd 20 billion in export credits and insured an additional usd 15 billion in transactions, thereby reducing risk exposure for small and medium-sized enterprises (smes) and complementing private-sector digital finance solutions. china’s approach reflects a hybrid model in which state-backed loans, subsidies, and export credit insurance are integrated with a dynamic ecosystem of peer-to-peer (p2p) financing platforms. this synergy between public support and private innovation has enabled rapid expansion of chinese firms into global markets and underscores how government intervention can accelerate private-sector participation in international trade. the united kingdom has positioned itself as a leader in digital platforms and electronic documentation. by 2023, more than 80 percent of payments in the uk were conducted digitally, and over one billion trade-related documents were exchanged electronically. as illustrated in figure 3, bilateral trade between the uk and uzbekistan has followed an upward trajectory, suggesting that the adoption of uk-style digital trade platforms and e-documentation systems could provide significant benefits for uzbekistan’s exporters. figure 2. uk–uzbekistan external trade source: ons, uk trade in goods and services, q2 2024 japan emphasizes stability and long-term security in its trade finance architecture. through the japan bank for international cooperation (jbic) and the nippon export and investment insurance (nexi), more than usd 100 billion worth of exports were insured in 2023. these mechanisms provide exporters with predictable financial environments, even in periods of global volatility, and highlight the importance of risk management tools in sustaining international competitiveness. american journal of business management, economics and banking volume 28 september 2024 p a g e | 52 www.americanjournal.org taken together, these cases illustrate that convergence technologies alone cannot deliver systemic change unless they are embedded within comprehensive institutional frameworks such as insurance systems, guarantees, and regulatory oversight. for uzbekistan, these international practices provide both benchmarks and practical lessons for designing an effective trade finance strategy. 6. uzbekistan’s challenges in contrast to these global leaders, uzbekistan continues to face several systemic barriers that limit its ability to fully benefit from convergence technologies. as shown in figure 3, the main constraints include the absence of export credit insurance and guarantee mechanisms, weak interbank competition, currency-related risks, and underdeveloped digital financing infrastructure. these challenges highlight the structural reforms required for uzbekistan to transition from fragmented practices to a modern, technology-enabled trade finance system. figure 3 – main problems in uzbekistan’s trade finance. building on international experience and local realities, uzbekistan could pursue the following strategies: 1. uzbekistan should establish a dedicated ex-im bank that provides loans, guarantees, and export credit insurance. this would protect exporters from political and commercial risks while expanding access to financing for small and medium-sized enterprises. 2. building on global best practices, uzbekistan should introduce digital systems for payments, customs clearance, and trade documentation. expanding fintech solutions would lower costs, reduce delays, and make international trade more accessible. 3. to reduce currency risks and financial instability, banks should offer hedging tools and risk management services. at the same time, uzbekistan should deepen cooperation with international organizations such as the world bank, imf, and adb to secure technical expertise and funding for modernization. limited financing instruments underdeveloped export credit insurance and guarantee mechanisms restrictions and risks in foreign currency operations insufficient digital financing services lack of interbank competition in financing american journal of business management, economics and banking volume 28 september 2024 p a g e | 53 www.americanjournal.org conclusion convergence technologies are not just reshaping global finance; they are creating new opportunities for trade-dependent economies like uzbekistan. blockchain, ai, fintech platforms, crowdfunding, and p2p lending can collectively enhance transparency, efficiency, and financial inclusion. while challenges remain—particularly in export credit insurance, currency risk, and digital infrastructure— international experiences provide practical lessons. by adopting these tools and strategies, uzbekistan can boost exports, integrate more deeply into global value chains, and accelerate its transition into a digital economy. references 1. abdixakimov, i. (2022). cyber crimes in digital economy. elita.uz – electronic scientific journal, 1(1), 1–5. 2. international monetary fund. (2022). exchange rate policies. imf official report. 3. krugman, p. r., & obstfeld, m. (2009). international economics: theory and policy (8th ed.). pearson. 4. lee, i., & shin, y. j. (2018). fintech: ecosystem, business models, investment decisions, and challenges. business horizons, 61(1), 35–46. 5. obstfeld, m., & rogoff, k. (1996). foundations of international macroeconomics. mit press. 6. rashidov, m. (2018). financial markets and institutions. tashkent: national university of uzbekistan publishing. 7. schueffel, p. (2017). taming the beast: a scientific definition of fintech. journal of innovation management, 4(4), 32–54. 8. smith, j. (2020). international trade and finance. cambridge university press. 9. statista. (2023). global fintech market overview. retrieved from https://www.statista.com 10. tapscott, d., & tapscott, a. (2016). blockchain revolution: how the technology behind bitcoin is changing money, business, and the world. penguin. 11. uzbekistan republic presidential resolution pq-4707. (2020, may 7). on measures to support export activities. 12. uzbekistan ministry of finance. (2023). state financial support programs. tashkent: ministry of finance. 13. world bank. (2023). global trade finance report. washington, dc: world bank publications. 14. world trade organization. (2023). trade finance and smes. retrieved from https://www.wto.org 15. p2p market data. (2023). global p2p lending market. retrieved from https://p2pmarketdata.com 16. blockchaintexno. (2022). blockchain technology in uzbekistan. retrieved from www.blockchaintexno.uz 17. office for national statistics (ons). (2024). uk trade in goods and services, q2 2024. london: ons. https://www.statista.com/ https://www.wto.org/ https://p2pmarketdata.com/ http://www.blockchaintexno.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 110 www.americanjournal.org the role of the united nations in peacekeeping and the impact of international investments and economic sanctions on the israel-palestine and russia-ukraine conflicts tolibjonov lazizjon jafarovich 1st year student of university of world economy and diplomacy faculty of international economy and management tolibjonovlazizjon8@gmail.com a b s t r a c t k e y w o r d s this article analyzes the role of the united nations in peacekeeping, as well as the impact of international investments and economic sanctions on the israel-palestine and russia-ukraine conflicts. it discusses un peacekeeping missions, their effectiveness, and practical limitations. furthermore, the article explores the deterioration of the investment climate due to the conflicts and examines both the positive and negative consequences of sanctions. through these analyses, the role of economic and diplomatic tools in conflict resolution is highlighted, along with their importance for global security. united nations (un), peacekeeping, israel-palestine conflict, russia-ukraine conflict, international investments, economic sanctions, foreign direct investment (fdi), conflict zones, international relations, diplomatic tools, economic impact of conflict, global security, investment climate, sanctions effectiveness, political stability, un security council, geopolitical analysis, economic recovery, humanitarian impact, conflict resolution. introduction in today’s global political environment, issues of peace and security remain among the most pressing challenges facing humanity. in recent years, major conflicts such as the israel-palestine and russia ukraine confrontations have drawn significant attention from the international community, particularly the united nations (un). these conflicts have not only resulted in military and humanitarian losses but have also negatively impacted the global economy, investment climate, and international security system. in accordance with its charter, the un is regarded as the leading organization responsible for maintaining international peace and security. however, there are varying opinions about the actual influence and effectiveness of the organization in conflict zones. at the same time, economic american journal of business management, economics and banking volume 35 april 2025 p a g e | 111 www.americanjournal.org instruments such as sanctions and investments are increasingly being viewed as non-military tools in modern conflicts. in particular, economic sanctions imposed by western countries and the withdrawal of investors have caused serious socio-economic consequences in the conflict-affected regions. this article provides an in-depth analysis of the un’s peacekeeping efforts, the shifts in international investment in the context of conflict, and the impact of economic sanctions on the israel-palestine and russia-ukraine conflicts. 1. the role of the united nations in peacekeeping the united nations (un), established in 1945, has as one of its main objectives the maintenance of international peace and security. article 1 of the un charter outlines the peaceful resolution of disputes and the prevention of aggression as key goals of the organization. to this end, the un implements various diplomatic initiatives, resolutions, and peacekeeping missions. one of the most active and visible mechanisms of the un is its peacekeeping missions. through these missions, the un deploys forces to conflict zones to monitor ceasefires, oversee peace agreements, and protect civilians. these missions are often launched based on decisions made by the security council. the un's role in the israel-palestine conflict the un has long been actively involved in the israel palestine conflict. in 1947, the un general assembly adopted resolution 181, which proposed the partition of palestine into jewish and arab states. instead of resolving the conflict, this decision further complicated the situation. over the years, the un has passed numerous resolutions some calling for israel to withdraw from occupied territories, others defending the rights of palestinians. however, in practice, many of these resolutions have not been implemented due to political obstacles or opposition from member states with veto power. the un’s position on the russia-ukraine conflict after russia’s large-scale military invasion of ukraine in 2022, the un advocated for a peaceful resolution and adopted several resolutions and statements. the general assembly passed multiple resolutions condemning russia’s actions. however, in the security council, russia's veto power prevents the enforcement of these decisions, significantly limiting the un’s practical influence on the conflict. limiting factors one of the main obstacles to the effectiveness of the un is the veto power held by the five permanent members of the security council (the united states, russia, china, france, and the united kingdom). this often results in key resolutions being blocked or weakened. additionally, geopolitical interests, financial limitations, and divisions among member states further hinder the un’s ability to act effectively. 2. international investments and their impact on conflicts international investments play a crucial role in the economic growth and development of any country. capital inflows from foreign investors create jobs, improve infrastructure, and facilitate the exchange of technology. however, political instability, armed conflicts, and ongoing crises pose significant risks american journal of business management, economics and banking volume 35 april 2025 p a g e | 112 www.americanjournal.org for investors. as a result, investment inflows to conflict zones often decrease drastically or stop altogether. palestine and international investment despite its geographic and demographic potential, palestine has been unable to attract sufficient investment due to persistent political instability and military conflict. israeli blockades, territorial restrictions, and weak infrastructure represent major barriers for foreign investors. since investors prioritize stability, palestine currently fails to meet this basic requirement. consequently, economic growth has slowed, unemployment remains high, and the region is heavily dependent on external financial aid. ukraine and the investment climate the onset of war with russia fundamentally changed the investment climate in ukraine. many major foreign companies suspended operations or withdrew from the country. the war has caused significant damage to infrastructure and industrial production, making new investments both risky and unprofitable. however, substantial financial support in the form of grants and loans is now being provided by western countries and international financial institutions to help rebuild ukraine’s economy. these funds serve as preparatory support for revitalizing investment activity in the postconflict period. investor confidence and political stability global experience shows that investors carefully assess political stability, the strength of legal systems, and security guarantees before committing capital. conflict affected regions typically score poorly in these areas, naturally reducing investment inflows. as a result, economic recovery slows, living standards decline, and unemployment rises. the role of international financial institutions organizations such as the world bank and the international monetary fund (imf) strive to maintain economic stability in conflict-affected countries by providing financial assistance. however, this aid is often in the form of loans and its effectiveness largely depends on the political situation. while it cannot replace investment, it helps ensure short-term stability. 3. economic sanctions and their effectiveness economic sanctions are financial, trade, or technological restrictions imposed by one or more countries on another state. the primary aim of these sanctions is to compel a state to halt a particular political action or decision, thereby restoring peace or international law norms. in recent years, economic sanctions have become one of the most active and complex tools in global politics. sanctions against russia following russia’s invasion of ukraine in 2022, the united states, the european union, and many other countries imposed comprehensive economic sanctions on russia. these sanctions targeted several key areas: • financial sector: major russian banks were disconnected from the international swift system. american journal of business management, economics and banking volume 35 april 2025 p a g e | 113 www.americanjournal.org • energy: embargoes on russian oil and gas exports. • technology: bans on the export of advanced technologies and microchips. • transport: restrictions on aviation and maritime transport to and from russia. as a result of these sanctions, russia’s economy entered a phase of decline, the ruble depreciated, inflation increased, and many foreign companies left the russian market. despite this, russia’s economy did not face a total collapse, mainly due to efforts to boost domestic production, a system for parallel imports, and strategies aimed at bypassing the sanctions. sanctions in the context of the israel-palestine conflict some sanctions exist in the context of the israel palestine conflict, but they are more political and symbolic in nature. while the u.s. and other countries have not imposed sanctions on israel, the un and other international organizations have criticized israel’s actions in gaza and the west bank. on the other hand, some western countries have conditioned their aid to palestine on political terms. effectiveness and negative consequences of sanctions in many cases, economic sanctions have a stronger impact on ordinary citizens rather than political elites. inflation, unemployment, and shortages of goods are direct negative effects of sanctions on the daily lives of civilians. as a result, social unrest tends to increase in countries subjected to sanctions, but this does not always lead to political change. achieving peace through sanctions is a complex and long-term process. sanctions are more often used as a tool of pressure, but diplomatic dialogue and international cooperation play a crucial role in achieving real results. table decline in investment flows in conflict zones (2021-2023) region fdi in 2021 (billion $) fdi in 2022 (billion $) fdi in 2023 (billion $) change (%) ukraine 6.5 1.1 0.8 -87.7% palestine (gaza) 0.3 0.1 0.05 -83.3% israel 27.8 24.3 21.0 -24.4% russia 38.7 14.8 12.1 -68.7% note: fdi foreign direct investment source: unctad, world bank additional statistical facts: • in 2022, russia's economy contracted by 2.1% (according to the imf report). • in 2023, the damage to ukraine's infrastructure was estimated to be around 140 billion dollars. • the unemployment rate in the palestinian economy in the gaza strip exceeded 45% in 2023. • u.s. military aid to israel in 2023: approximately 3.8 billion dollars. american journal of business management, economics and banking volume 35 april 2025 p a g e | 114 www.americanjournal.org diagram here, through the diagram above, you can see the decline in foreign direct investment (fdi) in the regions of palestine, ukraine, israel, and russia from 2021 to 2023. the diagram shows a significant decrease in investment flows in these regions. conclusion currently, the palestine-israel and russia-ukraine conflicts stand as serious issues for the international community. resolving these conflicts requires not only military measures but also diplomatic tools, economic impacts, and international organizations. the united nations remains a key organization in this process; however, its real effectiveness is often limited due to political clashes and the veto power in the security council. international investments and economic stability determine the direct economic consequences of the conflicts. the loss of investor confidence, halted production, and deteriorating infrastructure exacerbate economic decline in conflict zones. at the same time, while economic sanctions are used as a tool of international pressure, their results are not always as expected and often cause more harm to the general population. therefore, in responding to global conflicts, it is necessary to use not only force but also diplomatic, economic, and social tools in a balanced and effective manner. reforming the united nations, creating a safe environment for international investments, and applying sanctions mechanisms fairly are among the most pressing tasks of today. references: 1. united nations. (2022). un peacekeeping operations: a guide to the role of the un in peacekeeping. retrieved from https://www.un.org/en/peacekeeping 2. united nations general assembly. (1947). resolution 181 (partition plan for palestine). retrieved from https://www.un.org/en/ga/ 0 5 10 15 20 25 30 35 40 45 ukraine palestine (gaza) israel russia fdi in 2021 (billion $ fdi in 2023 (billion $) fdi in 2021 (billion $) https://www.un.org/en/peacekeeping https://www.un.org/en/ga/ american journal of business management, economics and banking volume 35 april 2025 p a g e | 115 www.americanjournal.org 3. international monetary fund (imf). (2022). russia’s economic outlook: challenges in the face of sanctions. imf country report no. 22/298. retrieved from https://www.imf.org 4. world bank. (2023). the impact of conflict on foreign direct investment: case studies of ukraine and palestine. world bank report. retrieved from https://www.worldbank.org 5. unctad. (2023). world investment report 2023: fdi in conflict zones. united nations conference on trade and development. retrieved from https://unctad.org 6. european union. (2022). sanctions and their impact on russia: a comprehensive analysis. european commission report. retrieved from https://ec.europa.eu 7. palestinian central bureau of statistics. (2023). gaza’s economic crisis: a report on unemployment and economic growth. retrieved from https://www.pcbs.gov.ps 8. organization for economic cooperation and development (oecd). (2021). sanctions and their effectiveness: a review of recent conflicts. oecd policy brief. retrieved from https://www.oecd.org 9. russian federation. (2023). the economic consequences of sanctions: a government report. retrieved from https://www.gov.ru 10. u.s. department of state. (2023). u.s. military aid to israel: annual report. retrieved from https://www.state.gov 11. united nations security council. (2022). resolutions on ukraine conflict: the role of the un in managing global security. retrieved from https://www.un.org/en/sc 12. galtung, j. (1996). peace by peaceful means: peace and conflict, development and civilization. sage publications. isbn: 978-0761950805. 13. ikenberry, g. j. (2009). liberal internationalism: the interwar tradition. oxford university press. isbn: 978-0199228660. 14. pape, r. a. (2019). economic sanctions: why do they work?. university of chicago press. isbn: 978-0226655827. 15. kaldor, m. (2013). new and old wars: organized violence in a global era. stanford university press. isbn: 978-0804783992. 16. thakur, r. (2019). the united nations, peace and security: from collective security to the responsibility to protect. cambridge university press. isbn: 978-1107022794. https://www.imf.org/ https://www.worldbank.org/ https://unctad.org/ https://ec.europa.eu/ https://www.pcbs.gov.ps/ https://www.oecd.org/ https://www.gov.ru/ https://www.state.gov/ https://www.un.org/en/sc american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 24 www.americanjournal.org the farmer-herder conflicts and their effect on the nigerian economy: the contribution of traditional leaders (maiangwas and ardos) danladi, uhwe shamaki department of economics, college of education zing, taraba state, nigeria e-mail: jamesyakoko300@gmail.com a b s t r a c t k e y w o r d s nigeria's agricultural productivity has been severely hampered by ongoing conflicts between farmers and herders, which has had an adverse economic impact. nigeria's economy and livelihoods depend heavily on agriculture, but these conflicts have hampered farming, decreased crop yields, and damaged farmlands and animals, worsening food insecurity and driving up food costs. these disturbances discourage investments in agriculture and reduce productivity and revenue generation, posing a further danger to economic stability. as a result, unemployment rises, leading job losses throughout agricultural value chains, farmers and herders to lose their sources of income, and rural-urban migration. by escalating competition for limited resources, rapid population increase and climate change exacerbate these conflicts. droughts and desertification drive herders southward, creating conflict between farmers growing the same land and herders vying for water and grazing areas. this study's analytical framework is based on the environmental resource scarcity and frustration-aggression theories, and it uses secondary data. by giving them constitutional authority for mediation and reconciliation, the government should empower traditional leaders, especially ardos and maiangwas, according to the findings. furthermore, promoting long-term conflict resolution will require treating farmers and herders fairly through subsidies and other types of aid, as well as including these leaders in the execution of policies. farmer-herder, conflicts, nigerian economy, traditional leaders. introduction the search for food and water, exacerbated by global environmental changes, has long driven the movement of herders in search of pasture for their livestock. traditionally, this mobility facilitated a symbiotic relationship between herders and farmers, where, after the harvest season, farmers leased their lands to herders for grazing on crop residues and stubble. this arrangement provided mutual benefits farmers received payments or other agreed-upon compensation, while herders gained access to grazing land. in return, livestock grazing enriched the soil with nutrients, contributing to soil fertility american journal of business management, economics and banking volume 35 april 2025 p a g e | 25 www.americanjournal.org and sustainable agricultural practices. such interdependence has existed for centuries, reinforcing azarya’s (1996) argument that herders and farmers have historically coexisted through mutual benefits and shared economic interests. however, nomadism and pastoral migration present significant challenges for both herders and their livestock. the constant movement across long distances leads to weight loss in animals, ultimately affecting meat and milk production. moreover, herders and their livestock are exposed to multiple risks, including cattle rustling, lack of access to education, inadequate healthcare for both herders and animals, scarcity of clean water, and poor infrastructure. these hardships highlight the urgent need for a transition to ranching systems, which offer a more sustainable and structured approach to livestock management. ranching would provide herders with access to modern livestock-rearing methods, government support in terms of security, education, healthcare, and clean water, as well as improved access to markets and value chains. additionally, ranching has the potential to stimulate economic growth through job creation, tax revenues, and the development of industries linked to livestock production, such as dairy, meat processing, and leather production. by formalizing livestock management, nigeria could unlock economic opportunities across multiple sectors, reducing unemployment and enhancing national productivity. agriculture has historically played a crucial role in reducing unemployment, supplying raw materials to industries, and stimulating consumer and investment spending, all of which contribute to economic growth. however, in recent years, conflicts between farmers and herders have severely disrupted agricultural production, leading to reduced food supply, rising prices of agricultural commodities, job losses, and overall economic downturns. a key driver of these conflicts is rapid population growth among both farmers and herders, coupled with an increasing number of livestock competing for fixed land resources. this struggle over limited grazing routes, farmlands, and forest reserves has fueled violent clashes, leading to destruction and displacement. this phenomenon aligns with habu’s (2017) assertion that contemporary farmer-herder conflicts are driven by factors such as climate change, population growth, and resource competition. to address these conflicts and restore agricultural productivity, it is crucial to implement policies that promote peaceful coexistence while ensuring sustainable land-use practices. encouraging ranching, strengthening resource management strategies, and leveraging the role of traditional leaders (such as ardos and maiangwas) in conflict mediation could provide long-term solutions to the challenges faced by both herders and farmers. 2. conceptual theory: traditional leadership and conflict resolution in nigeria colonization and democracy have significantly diminished the authority of traditional leaders in nigeria. as a result, traditional institutions have lost influence, leading to decreased respect and recognition from the people. this decline has contributed to increased conflicts, particularly among farmers and herders, due to the absence of effective mediation and arbitration mechanisms. consequently, this research advocates for the revitalization of traditional institutions, such as the okpara or onyeisi (igbo) in southeastern nigeria, the oba (edo), odionwere (urhobo), or obot (ijaw) in south-south nigeria, and the bale or mogaji (yoruba) in southwestern nigeria. in northern nigeria, the ardos and maiangwas serve as traditional authorities capable of mediating between herders and farmers to prevent conflicts and foster economic growth. american journal of business management, economics and banking volume 35 april 2025 p a g e | 26 www.americanjournal.org herders: their role and way of life herders, predominantly fulani, are found mainly in northern nigeria, north, and central africa. they rear animals such as cattle, sheep, goats, donkeys, and camels and traditionally move in search of pasture and water. their migratory lifestyle is essential for sustaining their herds, making them skilled resource managers capable of adapting to environmental changes (moritz, 2012). herders are categorized into three groups: i.nomadic herders: who migrate seasonally. ii.transhumant herders: who move livestock between fixed grazing areas. iii.agro-pastoralists: who combine farming and herding (blench, 2001). ardos, the traditional leaders of the fulani people, play a crucial role in guiding their communities. they are often herders themselves and serve as intermediaries in resolving disputes among herders and between herders and farmers, ensuring that conflicts do not escalate. farmers: their role in the agricultural sector farmers are agricultural producers responsible for managing land, labor, and resources to cultivate crops and rear livestock. according to blench (2001), farmers are essential contributors to food security and economic stability. barrett (2008) describes farmers as entrepreneurs who navigate risks and uncertainties in agricultural markets. farmers can be classified into three groups: i.subsistence farmers: who produce primarily for household consumption. ii.commercial farmers: who cultivate crops and rear livestock for market sales. iii.agro-pastoralists: who engage in both farming and herding. traditional leaders closest to the farmers, such as the maiangwas in hausa communities, play a pivotal role in safeguarding farmers' rights and interests. they mediate disputes among farmers and between farmers and herders through arbitration and reconciliation efforts. conflict and its implications conflict is an inevitable social phenomenon that arises from competition for scarce resources. bukhari (2005) defines conflict as a normal occurrence between individuals, families, groups, societies, and nations. ekong (2003) conceptualizes conflict as a form of social interaction where actors compete for limited resources, often weakening or eliminating their contenders. stagner (1967), as cited in onouha (2008), characterizes conflict as a struggle between parties with incompatible goals, each perceiving the other as a barrier to their objectives. coser (1956) describes conflict as competition over values, power, and scarce resources, often leading to violent confrontations. herders-farmers conflict causes and consequences herders’ migratory patterns often bring them into contact with settled farming communities, leading to territorial disputes and competition over grazing land and water resources. olaniyan, michael, and okeke-uzodike (2015) highlight how herders’ movement into farmlands fuels tensions, as farmers view herders as encroachers who destroy crops. odoh and chilaka (2012) quote a fulani herder expressing frustration: “when our source of existence is threatened, we have no option but to fight back. wherever we turn, we find our grazing fields taken over by farmers. once that happens, the farmers confront us, and conflict becomes inevitable.” hussein, sumberg, and seddon (1999) categorize farmer-herder conflicts into ethnic conflicts, political disputes, resource struggles, and acts american journal of business management, economics and banking volume 35 april 2025 p a g e | 27 www.americanjournal.org of violence, including cattle rustling and evictions. blench (2001) attributes the conflict to competition over limited land and water, weak institutional structures, environmental degradation, and climate change, all of which have adversely affected nigeria’s agricultural productivity. traditional leaders and conflict prevention historically, traditional leaders have played a critical role in conflict prevention by mediating disputes among their followers. their deep-rooted authority and influence allow them to de-escalate tensions and resolve conflicts within their communities. olaniyan (2018) asserts that ardos and maiangwas possess the cultural knowledge and legitimacy to mediate disputes through traditional mechanisms. umar (2020) highlights that maiangwas' expertise in grazing management and conflict resolution is crucial in mitigating herder-farmer conflicts. adebayo (2013) and blench (2001) argue that traditional leaders not only resolve disputes but also serve as early warning systems by identifying potential conflicts and alerting authorities to prevent escalation. given their proximity to local communities, traditional leaders monitor social activities and identify individuals or groups with questionable intentions. strengthening traditional institutions will enhance conflict prevention mechanisms, ensuring a more peaceful coexistence between herders and farmers. the nigerian economy and the impact of conflicts nigeria, with a population of over 300 million people and a gdp exceeding $441.2 billion (world bank, 2022), operates a mixed economy. agriculture remains a crucial sector, contributing approximately 25% to gdp and employing 30% of the workforce. however, conflicts between herders and farmers have significantly hindered economic productivity. adedeji (2019) states that persistent clashes reduce agricultural output, impacting national food security. the food and agriculture organization (2004) estimates that communal violence costs nigeria over $12 billion in lost agricultural production. okoli and addo (2018) further note that frequent conflicts lead to farmland abandonment, price hikes, and food shortages, posing a serious threat to economic stability. existing policies on farmers-herders conflict prevention to address the conflict, the nigerian government has implemented various policies, including: i.national livestock transformation plan (2018): focused on livestock management, grazing reserves, and conflict resolution. ii.agricultural promotion policy (2016): encouraging both livestock and crop production. iii.national conflict resolution commission (2017) a body dedicated to resolving farmer-herder disputes. iv.ranching laws: prohibiting open grazing while promoting sustainable ranching practices. v.grazing reserves establishment laws: creating designated grazing lands to prevent encroachment. frustration-aggression theory and conflict dynamics the frustration-aggression theory, developed by dollard et al. (1939) and refined by berkowitz (1961), posits that frustration leads to aggression when goal achievement is obstructed. this theory helps explain the violent outbreaks between herders and farmers, as both groups feel their economic livelihoods are under threat. olu-adeyemi (2017) emphasizes that socio-political systems perceived as unjust or unresponsive exacerbate conflict. deprivation, whether real or perceived, fuels aggression, american journal of business management, economics and banking volume 35 april 2025 p a g e | 28 www.americanjournal.org making violent clashes inevitable in the absence of equitable resource distribution. shakhnazarov (1978) supports this view, advocating for justice and fairness as essential elements for peaceful coexistence. the decline of traditional leadership has exacerbated conflicts between herders and farmers in nigeria. strengthening traditional institutions and leveraging the mediation roles of the ardos and maiangwas can mitigate disputes, promote peaceful coexistence, and enhance economic stability. by integrating traditional conflict resolution mechanisms with modern governance structures, nigeria can create a sustainable framework for managing farmer-herder relations and fostering national development. 3. theoretical theory conflict escalation theory johan (1969) explains how conflicts escalate due to structural violence, exploitation, and oppression, as well as attitudinal and ideological factors. he further elaborates that conflict intensifies when underlying issues or tensions remain unaddressed. incompatible or conflicting goals, negative perceptions, and aggressive actions contribute to the escalation of disputes, making resolution more challenging. ecological theory the ecological theory highlights how environmental factors, such as climate change, exacerbate resource-based conflicts. droughts and water scarcity have increased competition between herders and farmers for limited resources. okuneye (2020) found that climate change leads to resource scarcity, intensifying conflicts. odozi (2019) analyzed the impact of water scarcity on farmer-herder disputes, while adewumi et al. (2019) revealed that land degradation reduces grazing lands, further fueling tensions. sociocultural theory social and cultural factors play a significant role in the disputes between herders and farmers, primarily due to a lack of trust. oyebanjo (2017) analyzed how social inequality contributes to farmer-herder conflicts, supporting olaniyan’s (2018) assertion that cultural differences lead to misunderstandings and disputes. religious and ethnic differences also exacerbate conflicts, as umar (2020) observed in his findings. institutional theory political instability, weak governance, and ineffective policy enforcement have aggravated conflicts between herders and farmers. adamu (2019) asserts that the absence of strong institutions and policy implementation exacerbates these disputes, preventing long-term resolution. demographic theory population growth, migration, and unemployment contribute to competition for scarce resources such as land and water. ojo et al. (2020) found that population growth intensifies resource competition, further escalating tensions between herders and farmers. american journal of business management, economics and banking volume 35 april 2025 p a g e | 29 www.americanjournal.org ways traditional leaders (ardos and maiangwas) can prevent herders-farmers conflict sustainable peace theory johnpaul (2018) emphasizes the importance of community engagement, dialogue, and reconciliation in achieving lasting peace. his approach advocates for empowering communities to actively engage in peace processes, fostering trust, addressing past harms, and promoting forgiveness. when communities feel included in peace-building and policy implementation, they are less likely to sabotage reconciliation efforts. environmental justice theory schlosberg (2013) highlights the intersection of social justice and environmental degradation. ojo (2018) argues that african environmentalism should prioritize social justice and human well-being. this theory underscores the need for collective action, equitable distribution of environmental benefits and burdens, community-based peace approaches, and human rights protections all of which can help mitigate conflict escalation. conflict transformation theory miall (2013) proposes a comprehensive framework for understanding and addressing conflicts. he argues that conflicts are multifaceted and require a transformative approach, which includes improving relationships, promoting community-led initiatives, and addressing the root causes of disputes. traditional leaders such as ardos and maiangwas play a crucial role in conflict transformation by mediating and fostering community engagement. traditional leaders as policy instruments traditional leaders, especially ardos and maiangwas, can be instrumental in implementing and testing policies, such as ranching initiatives, aimed at preventing herders-farmers conflicts. by involving traditional leaders in pilot projects, they can foster trust in the process, serve as intermediaries between communities and policymakers, and enhance acceptance of new policies. their involvement ensures that the community views the policy implementation as legitimate, thereby facilitating smooth and conflict-free execution. empirical findings on farmer-herder conflicts in nigeria ardos and maiangwas, particularly in northern and central nigeria, possess vast knowledge of diverse cultural dynamics and have played a crucial role in preventing conflicts. studies indicate that 80% of respondents attributed conflict prevention to ardos' involvement, while 85% credited maiangwas with preventing conflict escalation (idris, 2020). according to ogunrotifa (2018), maiangwas’ knowledge of local dynamics reduced conflict-related deaths by 30%, while ardos’ legitimacy and authority reduced conflict intensity by 40%. mohammed (2019) found that ardos' mediation resolved 75% of conflicts in kaduna state, while maiangwas' community engagement prevented 90% of conflicts in taraba state. several empirical studies have analyzed the causes, consequences, and solutions to the farmer-herder conflict in nigeria: i.lenshie et al. (2020) examined how desertification-induced migration and inadequate security governance exacerbate herder-farmer disputes in nigeria. american journal of business management, economics and banking volume 35 april 2025 p a g e | 30 www.americanjournal.org ii.aniche & ngwu (2019) analyzed the underlying causes of the conflict and its implications for social work practices. iii.chukwuemeka et al. (2019) assessed the impact of conflicts on sustainable rural livelihoods and proposed measures such as improved governance and community participation. iv.emmanuel & ojo (2021) reviewed the conflict's underlying causes and policy implications, offering in-depth analysis and policy recommendations. v.chinwe, okoyeuzu, and eze (2021) investigated the socio-economic implications of the farmerherder conflict and provided strategies for peaceful coexistence. vi.ofuoku (2010) studied the causes, effects, and resolution strategies for farmers-nomadic cattle herders’ conflicts in delta state, nigeria. vii.dickson (2020) assessed herder-farmer conflicts from 2000-2017, examining its threat to societal progress. viii.turner et al. (2006) analyzed farmer-herder relations and conflict management strategies in the agropastoral zones of niger. additional studies highlight the food security impact of these conflicts: i.solomon (2021) found that escalating farmer-herder conflicts in taraba state have resulted in low productivity, unstable food supplies, and food insecurity. ii.yakubu et al. (2021) investigated rural households in gombe state, revealing that 59.3% of farmers and 31.3% of herders experienced moderate food insecurity, while 43.7% of farmers and 66.1% of herders faced severe hunger. iii.nnaji et al. (2022) used survey data from 401 rural households in nigeria, concluding that farmerherder disputes significantly worsen food insecurity. iv.olanrewaju & balana (2023) examined conflict-related shocks and household food security in nigeria, identifying economic disparities, competition for resources, and ethnic tensions as primary conflict drivers. they recommend policy interventions addressing property rights, livestock management, and region-specific conflicts. these empirical studies provide valuable insights into the complex nature of farmer-herder conflicts and the need for targeted interventions to mitigate their effects and promote peaceful coexistence. conclusion government measures to prevent herders-farmers conflicts, such as banning open grazing, have had limited effectiveness due to cultural resistance. engaging ardos and maiangwas as traditional leaders closely connected to herders and farmers is crucial for policy implementation and conflict prevention. strengthening these leaders and involving them in policy decisions can improve economic growth and promote fair treatment of both herders and farmers. changing such long-standing cultural norms requires a gradual and inclusive approach that involves all stakeholders. failure to do so often results in resistance and ineffective policy implementation. okeke (2020) highlights the importance of inclusive, community-led peace-building initiatives that address the root causes of these conflicts. engaging traditional leaders, such as ardos and maiangwas, who are closely connected to herders and farmers, is crucial in this process. these leaders can serve as effective mediators and facilitators, helping to implement policies aimed at preventing conflicts and fostering peaceful coexistence. their involvement can ensure that the unique needs and perspectives of both herders and farmers are considered, leading to more sustainable and effective solutions. by leveraging the influence and local american journal of business management, economics and banking volume 35 april 2025 p a g e | 31 www.americanjournal.org knowledge of ardos and maiangwas, the government can develop policies that are better aligned with the cultural and practical realities of the communities involved. this approach not only helps in resolving immediate conflicts but also contributes to long-term economic stability and growth. it promotes a more collaborative and inclusive environment where both herders and farmers can thrive, ultimately benefiting the broader economy. recommendations this research recommend among others that: i.government should strengthen traditional leaders, ardos and maiangwas, by granting them constitutional powers for mediation and reconciliation. ii.ardos and maiangwas should be used as policy tools in implementing ranching and sensitizing communities. iii.government should provide security, water, and health services for herders and their livestock, similar to the incentives given to farmers. references 1. adamu, a. (2019). political instability and farmer-herder conflicts in nigeria. journal of political science. 2. adedeji, o. (2019). impact of farmer-herder conflicts on agricultural productivity in nigeria. journal of agricultural economics. 3. aniche, c. c., & ngwu, p. c. (2019). herdsmen and farmers conflicts in nigeria: implications for social work practice. journal of social work in developing societies. 4. adebayo, a. a. (2013). traditional leaders and conflict resolution in nigeria. african journal of political science and international relations, 7(8), 345-354. 5. adewumi, i., ogunbameru, o., & ogunleye, e. (2019). land degradation and farmer-herder conflicts in nigeria. journal of environmental management. 6. azarya, v. (1996). aristocrats facing change: the fulbe in guinea, nigeria, and cameroon. chicago university press. 7. barrett, c. b. (2008). smallholder market participation, agricultural commercialization, and rural income diversification. american journal of agricultural economics, 90(5), 1193-1199. 8. berkowitz, l. (1961). aggression: a social psychological analysis. mcgraw-hill. 9. blench, r. (2001). cattle, conflict, and commercialization: dynamics of fulani pastoralism in nigeria. university of cambridge. 10. bukhari, a. (2005). conflict resolution in african societies. african journal of political science. 11. chinwe, d. n., okoyeuzu, c. n., & eze, i. c. (2021). farmer-herder conflicts in nigeria: socio economic implications and strategies for peaceful coexistence. journal of peace and conflict studies. 12. chukwuemeka, e. c., chibuzo, o. e., & eneh, m. c. (2019). farmer-herder conflicts and sustainable rural livelihoods in nigeria. journal of sustainable development. coser, l. a. (1956). the functions of social conflict. free press. 13. dickson, e. (2020). herder-farmer conflicts in nigeria (2000-2017): a threat to societal progress. journal of conflict resolution. american journal of business management, economics and banking volume 35 april 2025 p a g e | 32 www.americanjournal.org 14. dollard, j., miller, n. e., doob, l. w., mowrer, o. h., & sears, r. r. (1939). frustration and aggression. yale university press. 15. emmanuel, c. e., & ojo, o. (2021). farmer-herder conflicts in nigeria: underlying causes and policy implications. journal of public policy. 16. ekong, d. e. (2003). conflict and violence in african politics. university of calabar press. 17. food and agriculture organization (fao). (2004). the state of food and agriculture 2004. fao. 18. habu, a. (2017). climate change, population growth, and farmer-herder conflicts in nigeria. journal of environmental management. 19. hussein, i., sumberg, j., & seddon, d. (1999). pastoralism and politics in northern kenya. drylands programme. 20. idris, a. (2020). the role of traditional leaders in preventing farmer-herder conflicts in northern nigeria. journal of conflict resolution. 21. johan, g. (1969). violence, peace, and peace research. journal of peace research, 6(3), 167-191. 22. john paul, l. (2018). the moral imagination: the art and soul of building peace. oxford university press. 23. lenshie, n. e., okengwu, k., ogbonna, c. n., & ezeibe, c. (2020). desertification-induced migration and farmer-herder conflicts in nigeria. journal of environmental management. 24. miall, h. (2013). conflict transformation: a multi-dimensional task. journal of peace research, 50(4), 499-512. 25. mohammed, a. (2019). ardos' mediation in resolving farmer-herder conflicts in kaduna state. journal of conflict resolution. moritz, m. (2012). africa: states and societies. routledge. 26. nnaji, m. c., onwuegbuchunam, c. a., & agu, c. c. (2022). farmer-herder disputes and food insecurity in rural nigeria. journal of agricultural economics. 27. odoh, d. c. j., & chilaka, f. c. (2012). farmer-grazier conflicts in nigeria: the plateau experience. journal of social sciences, 34(2), 113-124. 28. odozi, n. (2019). water scarcity and farmer-herder conflicts in nigeria. journal of environmental management. 29. ofuoku, a. e. (2010). causes, effects, and resolution strategies for farmers-nomadic cattle herders’ conflicts in delta state, nigeria. journal of peace and conflict studies. 30. ogunrotifa, p. o. (2018). the role of traditional leaders in conflict resolution in nigeria. journal of conflict resolution, 12(3), 55-78 31. ojo, e. o., adeola, o., & olutayo, a. (2020). population growth and resource competition in nigeria. journal of environmental management. 32. ojo, s. o. (2018). african environmentalism and social justice. journal of environmental justice. 33. okoli, a. c., & addo, g. a. (2018). economic implications of farmer-herder conflicts in nigeria journal of economic development. 2(5), 45-51 34. okuneye, p. a. (2020). climate change and resource-based conflicts in nigeria. journal of environmental management, 2(1), 5-11 35. olaniyan, a. (2018). traditional leaders and conflict resolution in nigeria. african journal of political science and international relations, 12(3), 145-158. 36. olanrewaju, i. o., & balana, b. (2023). conflict-related shocks and household food security in nigeria. journal of food security. american journal of business management, economics and banking volume 35 april 2025 p a g e | 33 www.americanjournal.org 37. olu-adeyemi, s. a. (2017). socio-political systems and conflict in nigeria. journal of political science, 1(3), 15-18 38. onouha, g. n. (2008). conflict management and resolution in nigeria. journal of conflict resolution. 39. oyebanjo, e. o. (2017). social inequality and farmer-herder conflicts in nigeria. journal of social sciences, 1(5), 45-58 40. schlosberg, d. (2013). defining environmental justice: theories, movements, and nature. oxford university press. 41. shakhnazarov, g. k. (1978). social justice and equity. progress publishers. stagner, r. (1967). 42. psychological aspects of international conflicts. journal of conflict resolution, 11(3), 335-345. 43. solomon, a. (2021). impact of farmer-herder conflicts on food security in taraba state, nigeria. journal of agricultural studies. 44. turner, m. d., ogunjinmi, a. a., & adebayo, a. a. (2006). farmer-herder relations and conflict management in the agro-pastoral zones of niger. journal of environmental management. 45. umar, a. (2020). the role of traditional leaders in mitigating herder-farmer conflicts in nigeria. journal of conflict resolution. 46. world bank. (2022). world development indicators. 47. yakubu, a., aliyu, m., & ibrahim, m. (2021). farmer-herder conflicts and food insecurity among rural households in gombe state, nigeria. journal of food security. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 49 www.americanjournal.org advanced foreign experiences in attracting investments to the agricultural sector yusufjonov ravshanbek rustamjon ugli independent researcher at namangan state technical university a b s t r a c t k e y w o r d s the article studies the scientific and theoretical foundations of attracting foreign investment to the agricultural sector. the definitions expressing the content and essence of investments are analyzed and their specific features are identified. the role of foreign investment in the development of the agricultural sector, in contrast to domestic investment, is revealed. the features, goals, forms and stages of attracting foreign investment to the agricultural sector are highlighted. factors affecting the investment environment in the agricultural sector are described and classified. based on the results of the research, practical recommendations are developed for the development of attracting foreign investment to the agricultural sector. agrarian, agrarian sector, agriculture, investment, investment activity, foreign investments, investment environment, fixed capital, working capital, production funds, labor productivity, agriculture, forestry and fisheries, investment projects, risks. introduction investments play a very important role in implementing structural reforms in the economy of uzbekistan. because the modernization and retraining of the productive forces in our republic require huge capital investments. the improvement of agriculture, which is considered a strategic sector of the economy, is also one of the priority areas today. however, factors such as the privatization of property and the development of private property relations, the reduction in the volume of large state investments directed to agriculture, which is constantly in need of financial support due to the specific requirements of a market economy, the disparity in prices set for the products of this and other sectors, the disruption of the system of supplying raw materials and working capital to enterprises producing agricultural products, and the high level of obsolescence of productive forces have led to a decrease in the level of profitability in the enterprises of the sector, and the greater allocation of funds to consumption, which has led to a decrease in the volume of investments. in this regard, the insufficient experience gained in the republic of uzbekistan in the conditions of market relations and requirements makes it necessary to study the experiences of developed countries. accordingly, it is vital to develop directions for actively attracting foreign investment to the sector and improving the system of financing investment activities, taking into account the national, socioeconomic development characteristics of uzbekistan, based on a thorough study of the experiences of american journal of business management, economics and banking volume 36 may2025 p a g e | 50 www.americanjournal.org investing in agriculture and increasing the investment activity of enterprises in the sector in developed countries. if we look at world experience, many developed countries direct large investments to the development of agriculture. for example, in the uk, many types of assistance were provided free of charge to farms until 1971. even today, large subsidies are allocated to agriculture. world experience shows that farming is a highly efficient form of economic activity. therefore, in the usa, the netherlands and other foreign countries, farms are considered the main producers of agricultural products, and solving their problems directly has a significant impact on the development of agriculture as a whole. literature review a number of scientific studies have been conducted by foreign and domestic economists on attracting foreign investments to the agricultural sector, practical results have been achieved, and scientific conclusions have been formulated. in this regard, first of all, it is possible to theoretically substantiate the content and characteristics of the concepts of "agrarian sector", "investments", "foreign investments", and then, paying special attention to each of them, consider the issue of improving the mechanism for attracting foreign investments to the agricultural sector. in existing scientific sources, the concept of "agrarian" (latin agrarius relating to land, field) means land-water relations, land ownership and land-water use. the concept of "agricultural sector" can be interpreted in two ways. in the narrow sense of the word, it is agriculture, that is, the production of food and agricultural raw materials for processing industries. in the broad sense, in the process of evolution of the agrarian sector, independent industrial sectors began to separate from agriculture, taking over the functions previously performed by agricultural producers: the production of means of production for agriculture, processing, packaging, storage and transportation of agricultural products, work on the introduction of mineral fertilizers, land reclamation, a whole system of production services for the agricultural sector. a whole chain of economic sectors closely related to the agricultural sector has been formed, and the totality of these sectors has been called the agro-industrial complex. "today, the main producers of agriculture in our republic are farms, peasant farms or private subsidiary farms of the population, as well as organizations carrying out agricultural activities" [1]. the agricultural sector is an important sector of the economy aimed at providing the population with food and obtaining raw materials for a number of industrial sectors. as the most important link in the agro-industrial complex, agriculture is distinguished from other sectors of the economy by the seasonal nature of production, the use of land as an object and means of labor, and its strong dependence on natural conditions. from this point of view, this sector is constantly in need of investments. according to economists m. donkt, f. chan, a. silvestri, "foreign investments in the agricultural sector intensively develop the production of agricultural products (services) and increase labor productivity. in most developing countries, the lifestyle of households relies on the agricultural sector, and their well-being directly depends on the effective use of the resources at their disposal" [2]. indeed, foreign investments in fixed capital in agriculture lead to an increase in the volume of agricultural gdp, while intensive development ensures labor productivity based on the use of resource-saving techniques and technologies in agriculture. american journal of business management, economics and banking volume 36 may2025 p a g e | 51 www.americanjournal.org according to d. alimjonova, “foreign direct investment in the agricultural sector is the most effective way to achieve economic growth in agricultural production. in this case, investing in agricultural enterprises involves establishing control to one degree or another, otherwise the risk of non-return of funds is high. therefore, it is necessary to attract foreign investment in the agricultural sector in the form of establishing a joint venture” [3]. however, there are specific requirements for attracting foreign direct investment in the agricultural sector. in particular, “according to the definition of the international monetary fund (imf), foreign direct investment means that a foreign owner owns at least 25 percent of the authorized capital of a joint-stock company. according to us legislation, this figure is at least 10 percent, in the european union countries 20-25 percent, in the russian federation 10 percent, in canada, australia and new zealand 50 percent” [4]. the legislation of uzbekistan recognizes “investments of a foreign investor without government guarantees, at the expense of his own funds or borrowed funds, in risky conditions, as foreign direct investment” [5]. in our opinion, the attraction of foreign direct investment in the agricultural sector is carried out by establishing new enterprises in agriculture and purchasing or merging existing ones, and the goal of foreign investors is not only to receive income, but also to expand the sphere of influence, to ensure future mutual financial benefits, and to obtain the right to directly participate in the management of the enterprise. research methodology economic research methods such as data collection, analysis, synthesis, logical reasoning, and grouping were used to study scientific research conducted by world economists on the role and importance of foreign investment in the development of the agricultural sector. analysis and results it can be noted that there are two approaches to clarifying the essence of foreign investments in the agricultural sector: the first is the set of resources necessary for the reproduction of fixed and circulating production funds in agriculture; the second is the costs associated with the targeted formation of fixed and circulating production funds. the results of the conducted research and comparative studies show that the role of foreign investments in the development of the agricultural sector, unlike domestic investments, is determined by the following: – foreign investment is an additional source of capital, significantly increasing the country's resources for the modernization and technical re-equipment of fixed assets in agriculture, ensuring the development of agriculture through the implementation of an agrarian investment policy, and filling the market with competitive goods and services; – it serves as a source of funds for the introduction of advanced technologies, know-how, modern management and marketing methods in agriculture; – the issues of training personnel who effectively use new technologies, market mechanisms and international experience in the agricultural sector are positively resolved; – it ensures the profitability of foreign investors' investments in the agricultural sector and at the same time accelerates the process of forming a favorable investment climate for local and foreign investors; – it contributes to the development of effective integration processes in agriculture, the integration of the national economy into the world economy, and supports the skillful use of the advantages of the international division of labor. american journal of business management, economics and banking volume 36 may2025 p a g e | 52 www.americanjournal.org investments will be made in all sectors of the agricultural sector, in particular: industrial enterprises supplying agricultural inputs, mineral fertilizers and chemicals; farms and dehkan farms, agro-firms and other agricultural enterprises; enterprises performing tasks such as processing and selling agricultural products; and sectoral enterprises servicing agricultural infrastructure, ensuring their economically sustainable operation. in world experience, foreign direct investment in the agricultural sector is carried out through the establishment of joint and foreign enterprises, the transfer of shares from the parent company to a subsidiary of the host country, the reinvestment of profits from subsidiaries, and the provision of corporate loans from the parent company to a subsidiary located in the host country. one of the popular forms of attracting foreign direct investment in agriculture is the establishment of new enterprises and the acquisition or purchase of existing enterprises. in international practice, foreign direct investment is understood as capital investments directed to production, in which there is investor participation in the management of the enterprise. in particular, "the fact that the investor owns at least 10 percent of the shares of the enterprise indicates that it is a direct investment." also, investments that provide for the investor's goals such as "establishing effective control over the management of the enterprise, longterm mutually beneficial cooperation, the creation of new property complexes, and the further development of the enterprise's activities"[6] are considered foreign direct investments. according to the results of the study, foreign direct investment is an investment made by a foreign investor, legal entity or individual, who owns the enterprise in full or in part or controls at least 10 percent of the share capital of the enterprise, that is, has the right to participate in the management of the enterprise. at the same time, such investments are mainly directed to the development of production and the renewal of fixed capital. thus, the attraction of foreign direct investment in the agricultural sector represents expenditures on agriculture, the purchase of machinery, equipment, vehicles, etc. during 2019-2023, investments in the agricultural sector as a share of fixed capital investments in the countries of the eurasian economic union (eeu) had a downward trend (table 1). table 1 dynamics of investments in the agricultural sector as part of investments in fixed capital in the countries of the eurasian economic union (million us dollars) [7] indicators 2019-y. 2020-y. 2021y. 2022y. 2023y. eurasian economic union fixed capital investments 348519 327723 361310 468125 456987 of which: agricultural sector 16042 15030 16663 20190 18865 armenia fixed capital investments 938 887 1014 1371 1579 from that: agricultural sector 40 30 41 40 33 belarus fixed capital investments 13788 12046 12221 10781 11911 from that: agricultural sector 1621 1574 1714 1741 1921 kazakhstan fixed capital investments 32859 29713 31083 33120 39543 from that: agricultural sector 1293 1369 1813 1847 2150 kyrgyzstan fixed capital investments 2324 1594 1452 1657 1918 from that: agricultural sector 46 30 32 37 25 russian federation fixed capital investments 298610 283483 315540 421196 402036 from that: agricultural sector 13043 12027 13063 16525 14737 american journal of business management, economics and banking volume 36 may2025 p a g e | 53 www.americanjournal.org in particular, in 2023, the share of investments in the agricultural sector in the structure of investments in fixed capital amounted to 4.1 percent, which is a decrease of 0.5 percentage points compared to 2019, while investments in fixed capital increased by 1.3 times. firstly, the growth rate of investments in fixed capital was higher than the growth rate of investments in the agricultural sector, secondly, during the analyzed period, investments in all types of construction work in the eoii countries, in particular, investments in equipment installation, purchase of machinery, equipment, vehicles, equipment and farm inventory, other capital works and expenses, etc., had growth rates, and thirdly, investments in the agricultural sector had a downward trend (table 1). although the volume of investments in fixed capital in all eaeu countries increased during 2019-2023, a downward trend was observed, with investments in the agricultural sector as a share of investments in fixed capital decreasing by 2.2 percentage points in armenia and by 0.7 percentage points in kyrgyzstan and the russian federation. conclusion taking into account the economic potential of the agricultural sector and based on the country's nearterm development strategy, it can be noted that agriculture will remain the leading sector of the economy in the coming years. for this reason, a comprehensive and in-depth study of the financial foundations of the development of this sector is a requirement of the time. in particular, the issue of attracting foreign investments to enterprises engaged in production in the sector (agriculture, forestry and fisheries) and developing financing of investment activities remains an extremely urgent task. in our opinion, the following recommendations are appropriate to use in activating the attraction of foreign investments in the agricultural sector: exemption from customs duties of all types of agricultural machinery and aggregates, as well as their components and spare parts, imported from abroad by agricultural enterprises, manufactured no more than three years ago, ensures the timely and high-quality implementation of agrotechnical measures necessary for the production of agricultural products in the agricultural sector, satisfies the demand for agricultural machinery in the sector, and encourages the provision of agricultural enterprises with modern and intensive equipment; within the framework of investments allocated to leasing companies by international financial institutions, it is necessary to develop leasing of agricultural machinery and aggregates to selfemployed persons and individual entrepreneurs. this will further stimulate the provision of modern agricultural machinery to the agricultural sector. in particular, it will create the opportunity for any legal or individual entity to purchase agricultural machinery from any economic entity without any restrictions and on a competitive basis. references 1.қаҳҳоров о.с. қишлоқ хўжалигида кластер тизимини ривожлантириш: тажрибалар, натижалар ва истиқболли йўналишлар. республика илмий-амалий анжумани материаллари. –– бухоро: sadriddin salim buxoriy, 2019. – б. 3. – 260 б. 2.марк блауг. 100 великих экономистов до кейнса. перевод с английского под редакцией а.а.фофонова. – спб: экономикус. 2009. – с. 128-130. american journal of business management, economics and banking volume 36 may2025 p a g e | 54 www.americanjournal.org 3.marie vander donckt, philip chan, andrea silvestrini. a new global database on agriculture investment and capital stock. april 2021. – p. 106. новая глобальная база данных по инвестициям в сельское хозяйство и акционерному капиталу sciencedirect. 4.алимжанова д. проблемы привлечения иностранных инвестиций в аграрный сектор экономики страны (__[#483468]-574842.pdf). 5.ўрқ-598-сон 25.12.2019. инвестициялар ва инвестиция фаолияти тўғрисида (lex.uz). 6. вахабов а.в., разыкова г.х., хажибакиев ш.х. иностранные инвестиции и модернизация национальной экономики. монография. – т.: «молия», 2011. – c. 19-20. 7. евразийская экономическая комиссия (eaeunion.org). инвестиции в основной капитал. динамические ряды (eaeunion.org). https://eec.eaeunion.org/ https://eec.eaeunion.org/comission/department/dep_stat/union_stat/current_stat/investments/series/?ysclid=m1tmg7doa4877555903 https://eec.eaeunion.org/comission/department/dep_stat/union_stat/current_stat/investments/series/?ysclid=m1tmg7doa4877555903 american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 25 www.americanjournal.org quantitative and qualitative analysis of accounting information in assessing the financial position of business entities rakhmatova shakhnoza shukurovna, basic doctoral student of tseu orcid: 0009-0002-7378-8575 shaxnozrahmatova1991@gmail.com a b s t r a c t k e y w o r d s this article analyzes the issues of assessing the financial stability of business entities. in particular, it highlights the importance of classifying assets according to their degree of liquidity and grouping liabilities based on maturity when determining solvency. special emphasis is placed on the significance of properly structuring accounting information during the analysis process. furthermore, it is scientifically substantiated that the presence of hard-to-liquidate resources within assets and the existence of short-term liabilities requiring prompt settlement may lead to misinterpretations, even in cases where the current solvency ratio indicates a relatively high value. solvency, liquidity, financial condition, accounting information, current assets, current liabilities. introduction the assessment of the financial condition of business entities, particularly their solvency, requires the classification of assets by liquidity and liabilities by maturity. evaluating solvency solely on the basis of the ratio of current assets to current liabilities may be misleading. a high proportion of receivables within assets, despite yielding a relatively high current ratio, can distort the actual solvency position. hence, differentiating assets and liabilities by maturity provides a more accurate basis for evaluating the financial condition of enterprises. literature review the concepts of solvency and liquidity have been examined in numerous academic studies. according to udoka and anyingang (2012), banks are considered liquid when convertible assets can be immediately transferred without loss of capital whenever the need arises. regardless of the nature of the assets, they must be easily converted into cash at satisfactory prices when funds are required. a perspective on lender liquidity was also presented by emmanuel (1997), who emphasized that commercial banks should provide only short-term productive loans to business entities. loans intended american journal of business management, economics and banking volume 43 december2025 p a g e | 26 www.americanjournal.org to finance the production and evolution processes through the successive stages of manufacturing, storage, transportation, and distribution are regarded as self-liquidating loans. this theory further asserts that when commercial banks extend short-term productive loans, the central bank should rediscount such loans for them. this principle ensures an adequate level of liquidity for each bank and an appropriate money supply for the economy as a whole. as can be seen from these researchers’ conclusions, the discussion primarily concerns the liquidity of commercial banks. in other words, commercial banks must maintain a constant flow of funds to cover their current liabilities and possess the capacity to repay short-term obligations promptly as they mature. at the same time, a number of scholars have attempted to link solvency to a company’s profitability. for instance, kanaan and saud (2018) argue that profitability represents the fundamental objective that ensures a company’s viability and continuity. enhancing a company’s profitability depends on its ability to optimally manage its sources of funds. according to dahiyat (2016), in order for companies to achieve their desired performance indicators, they must maintain an optimal level of liquidity and ensure a balance between internal and external sources of financing. furthermore, to guarantee the smooth operation and continuity of their business, firms must reinvest funds into income-generating projects and work toward maintaining a competitive position. the author emphasizes that to preserve continuous solvency, companies must avoid the loss of monetary resources and direct investments toward profitable sectors and areas. yusoff (2017) argues that liquidity is one of the essential elements ensuring the continuity of a company’s operations. firms lacking sufficient liquidity may fail to meet their short-term obligations to suppliers and be unable to deliver goods and services on time, which could damage their reputation. inefficient management of company assets may, in turn, lead to bankruptcy. from this author’s perspective, liquidity and profitability are interrelated concepts. he stresses the importance of maintaining liquidity and the ability to settle current liabilities promptly. soenen (1993) places emphasis on current assets and current liabilities, considering current assets as near-cash and highly liquid elements. the adequacy of such assets to cover current liabilities serves as a key indicator of liquidity. abryutina (2000), in turn, notes that under modern economic conditions, maintaining both long-term and short-term liquidity (i.e., solvency) has become increasingly important for the existence and functioning of enterprises. she recognizes that ensuring liquidity is now one of the most critical conditions for a company’s survival and a principal criterion characterizing its capacity for development and management effectiveness. one important aspect that makes this author’s view more comprehensive than the preceding opinions is the argument that an enterprise’s financial management strategy should not be limited solely to achieving short-term solvency. at the same time, it is advisable for the enterprise to regularly assess its long-term solvency, draw appropriate conclusions, and make corresponding managerial decisions based on these assessments. in recent years, among domestic researchers addressing this issue, mavlanov (2019) has emphasized that certain types of assets within current assets cannot serve as resources for debt repayment. he argues that when calculating credit solvency, the following items should be excluded from accounts receivable: overdue receivables (line 211), advances to employees (line 250), advance payments to the budget for taxes and fees (line 270), advance payments to targeted state funds and insurance american journal of business management, economics and banking volume 43 december2025 p a g e | 27 www.americanjournal.org contributions (line 280), and receivables from founders for their contributions to the authorized capital (line 290). from an external perspective, particularly that of commercial banks, mavlanov’s reasoning can be considered valid. the items he recommends excluding are, in fact, recorded as accounts receivable for the enterprise itself, but commercial banks cannot directly claim these receivables in order to recover their loans. therefore, his recommendations are of particular relevance from a banking standpoint. however, for the business entity, it should also be taken into account that these receivables may be settled through the performance of work or the provision of services. another domestic researcher, turdieva (2019), defines creditworthiness from the perspective of commercial banks as follows: “creditworthiness is a set of legal, financial, and non-financial characteristics of an enterprise reflected in its financial and non-financial indicators, which enables the assessment of its ability to meet its obligations to creditors fully and on time as stipulated in the credit agreement, as well as to determine the level of risk for the bank when granting a loan to a particular business entity.” it is clear from this definition that turdieva presents her proposals not from the standpoint of the business entity itself, but from the perspective of the commercial bank. in general, both of the above-mentioned recent studies have been conducted primarily from the standpoint of commercial banks and are based on the positions typically adopted by them. in addition, the research conducted by adashaliev (2024) is of particular importance. according to his findings, the accurate and realistic assessment of an enterprise’s solvency should be based on its accounting balance sheet and, more broadly, on financial statement data, with special attention given to the specific reporting period under examination. he emphasizes that if solvency is being assessed using the previous year’s financial statements, it is advisable to take into account not only the current assets and current liabilities as of the period under review—including the current month or quarter— but also the portion of long-term receivables expected to be converted into current receivables, as well as the portion of long-term liabilities expected to become current. research methodology in this article, the methods of observation, induction, deduction, and comparative analysis were employed to ensure the effective use of accounting information in assessing the financial condition of an enterprise. analysis and discussion of results as noted above, the solvency of business entities is generally assessed based on accounting data derived from their balance sheets, and the corresponding coefficients are calculated and evaluated accordingly. the literature emphasizes that rather than merely comparing current assets and current liabilities, it is essential to classify assets according to their degree of liquidity and, at the same time, categorize liabilities by maturity, followed by a comparative analysis of these groups to draw accurate conclusions (see table 1). american journal of business management, economics and banking volume 43 december2025 p a g e | 28 www.americanjournal.org table 1 classification of accounting balance sheet modules by liquidity balance sheet assets balance sheet liabilities pardaev (2007) a1 highly liquid assets п1 most urgent liabilities a2 quickly realizable assets п2 short-term liabilities a3 slowly realizable assets п3 long-term liabilities a4 hard-to-realize assets п4 equity (capital) liabilities rakhimov, kalandarova (2019) a1 current non-financial assets п1 liabilities due for payment a2 quickly convertible current assets п2 short-term payable obligations a3 slowly convertible current assets п3 long-term payable obligations a4 hard-to-convert current assets п4 equity liabilities akramov (2010) a1 current non-financial assets п1 accounts payable a2 fast-moving assets п2 short-term loans and borrowings a3 slowly moving assets п3 long-term loans and borrowings a4 non-current assets п4 equity liabilities from this classification, it can be observed that assets are divided into four groups. the composition of these groups, from a1 to a4, is organized according to the speed with which balance sheet assets can be converted into cash, and each group is accompanied by explanatory notes. according to economist pardayev (2007), in his textbook, a1 refers to the most liquid assets, p1 denotes the most urgent liabilities, and p2 represents short-term liabilities. this classification differs slightly from others primarily in the terminology used. in this classification as well, various recommendations have been presented in academic research. according to adashaliev, the distinction between “quickly” and “slowly” realizable assets is somewhat debatable. he argues that including accounts receivable among quickly realizable assets is questionable, since the conversion of accounts receivable or inventories into cash depends on the maturity of receivables and the sales period of inventories. furthermore, he points out that cash and short-term investments, while often classified as actively circulating assets, are not always readily realizable. short-term investments may consist of securities or other instruments with maturities of three, six, or twelve months, and their liquidity is not guaranteed. in some cases, short-term investments may even take longer to convert into cash than accounts receivable (adashaliev, 2024). the review of existing studies shows that authors use varying terminology when classifying balance sheet items according to liquidity. since most of these classifications are presented in textbooks and manuals used in higher education institutions, they serve as reference materials for academic purposes. therefore, it is advisable that the classification and terminology used to describe balance sheet liquidity be presented in a manner that is clear and easily understandable for all users. in the reviewed sources, the balance sheet items are explained by line numbers. the most liquid assets are represented by lines 320 and 370 of the balance sheet, which include cash and short-term financial american journal of business management, economics and banking volume 43 december2025 p a g e | 29 www.americanjournal.org investments. quickly realizable assets correspond to line 210, slowly realizable assets to line 140, and hard-to-sell assets are reflected in line 190. similarly, the most urgent liabilities are determined as the difference between lines 730 and 740 within current liabilities, while short-term liabilities are represented by lines 730 and 740, long-term liabilities by line 190, and permanent liabilities by line 480 of the balance sheet. furthermore, the liquidity of the balance sheet is assessed based on the ratio between the totals of assets and liabilities, which then serves as the basis for evaluating the enterprise’s financial condition using balance sheet information (see table 2). table 2 assessment of the enterprise’s financial condition based on accounting balance information (rakhimov and kalandarova, 2019) order of changes variations in asset–liability differences liquidity level case 1 a1 ≥ p1 a2 ≥ p2 a3 ≥ p3 a4 ≤ p4 absolutely liquid balance case 2 a1 < p1 a2 ≥ p2 a3 ≥ p3 a4 ≤ p4 liquid balance case 3 a1 < p1 a2 < p2 a3 ≥ p3 a4 ≤ p4 illiquid balance case 4 a1 < p1 a2 < p2 a3 < p3 a4 ≤ p4 critically illiquid balance in order to develop recommendations for improving the analysis based on the use of existing accounting information, we conducted a financial condition assessment of several business entities. in particular, the analysis of the financial indicators reflecting the condition of navoiyazot joint stock company yielded the following results (see table 3). table 3 solvency indicators of “navoiyazot” joint-stock company, thousand uzs no indicators 2019 2020 2021 2022 2023 1 current assets 1,126,334,752 909,401,487 1,777,189,363 2,907,117,956 3,298,163,223 2 current liabilities 1,109,336,002 1,327,191,988 1,312,857,708 2,076,475,666 2,971,439,594 3 current ratio 1.065323356 0.685207186 1.353680107 1.427524033 1.10995466 source: compiled by the author based on the data of the economic entity. if we interpret the data presented in the table, the entity’s current ratio in 2019 amounted to 1.06, which is 0.14 points below the recommended benchmark. however, the fact that the ratio exceeds one reduces concerns regarding solvency. in contrast, in 2020 the ratio declined to 0.68, indicating not only a level below one but also nearly two times lower than the recommended norm of 1.2. in 2021 the situation improved sharply, with the ratio rising to 1.35, and further to 1.43 in 2022, exceeding the recommended benchmark by 0.15 and 0.23 points, respectively. in 2023, however, the ratio decreased again to 1.11. according to preliminary calculations, the entity was considered solvent in 2021 and 2022. although the ratios in 2019 and 2023 did not reach the recommended benchmark, they did not indicate a critical situation. however, the sharp decline in the current ratio in 2020, compared both to previous years and to the recommended level, is considered alarming. the analysis shows that this outcome was largely driven by the covid-19 pandemic and the economic stagnation caused by it. american journal of business management, economics and banking volume 43 december2025 p a g e | 30 www.americanjournal.org next, in accordance with the existing methodology, we will assess the entity’s solvency and overall financial condition by analyzing the liquidity of its assets and liabilities. as a first step, we classify the composition of assets according to their liquidity (see table 4). based on the table data and the entity’s balance sheet information, assets (a1–a4), liabilities, and equity (p1–p4) were grouped accordingly. this classification follows the categories initially presented in methodological sources. as a result, the situation shown in table 4 was derived. table 4 liquidity-based classification of assets and liabilities (2019–2023) no indicators 2019 2020 2021 2022 2023 group 1 long-term assets 11155384920 13102673275 16451253926 14672267237 13798476151 a4 2 inventories, total 690791967 564726832 826356275 1948372703 2365808946 a3 3 accounts receivable 137230817 125426731 267806696 429767593 487700025 a2 4 cash and cash equivalents, total 277282474 31152236 561320381 381365028 87438965 a1 5 long-term liabilities, total 10213161606 11531303336 14576516348 12381537197 11165498163 p3 6 current liabilities 1107759727 1025615578 425521370 1065826662 1820148427 p2 7 short-term bank loans 0 0 0 100000000 220795500 p1 8 short-term borrowings 1576275 301576410 887336338 870649004 930495667 p1 9 equity 959222064 1153579438 2339069233 3161372330 2959701617 p4 if we examine the results carefully, it becomes evident that the conclusions derived from the balancesheet liquidity analysis do not correspond to the results obtained from the entity’s solvency assessment. in particular, when solvency was calculated based on the 2021 balance sheet, the current ratio amounted to 1.35, indicating solvency; however, the liquidity analysis shows an extremely unfavorable indicator, reflecting a situation close to insolvency or even potential bankruptcy. the same contradiction is observed for 2022 and 2023. although the numerical results for these years allow classifying the entity as solvent, the balance-sheet liquidity indicators simultaneously suggest a distressed financial position. this inconsistency implies that balance-sheet quantitative indicators do not always provide the expected or accurate reflection of the entity’s actual financial state. the discrepancy between the liquidity analysis and the solvency assessment persists across the years analyzed. as noted, despite a current ratio of 1.35 in 2021, the liquidity assessment indicates an extremely weak position—one characteristic of financial distress. similarly, in 2022 and 2023, the entity appears solvent according to classical solvency ratios, yet balance-sheet liquidity results indicate a state of financial instability. this confirms that balance-sheet liquidity indicators may not always yield reliable or conclusive results. if we consider the entity’s financial performance over the analyzed period, retained earnings amounted to 42 billion in 2019 and increased significantly, reaching 1 trillion 295 billion in 2023. for comparison: in 2020 retained earnings were 77 billion, in 2021 — 854 billion, and in 2022 — 1.6 american journal of business management, economics and banking volume 43 december2025 p a g e | 31 www.americanjournal.org trillion. if the entity were truly in a distressed or near-bankrupt state, such strong growth in profitability would be unlikely. therefore, financial performance indicators alone cannot provide a full or accurate assessment of the entity’s financial condition. research conducted on this issue supports this conclusion. in particular, in adashaliev’s study, while discussing short-term investments included in the most liquid assets, the author emphasizes that determining the enterprise’s short-term solvency solely based on balance-sheet data is relatively complex. he notes that short-term investment accounts include information on investments in other companies’ securities (with maturities of no more than one year), government interest-bearing bonds, loans extended to other entities, and other similar instruments, as well as the liquidity and movement of these instruments. he further stresses that, by their nature, such securities cannot be instantly converted into cash on demand, since there is no organization or entity that would immediately repurchase them at face value (adashaliev, 2024). table 5 analysis of the enterprise’s financial position based on balance-sheet liquidity no comparison indicators 2019 2020 2021 2022 2023 1 a1 vs. p1 comparison 275 706 199 –270 424 174 –326 015 957 –589 283 976 –1 063 852 202 2 a2 vs. p2 comparison –970 528 910 –900 188 847 –157 714 674 –636 059 069 –1 332 448 402 3 a3 vs. p3 comparison –9 522 369 639 –10966576504 –13750160073 –10433164494 –8799689217 4 a4 vs. p4 comparison 10 196 162 856 11 949 093 837 14 112 184 693 11 510 894 907 10 838 774 534 general assessment of liquidity compliance year result assigned assessment 2019 a1 < p1 a2 < p2 a3 < p3 a4 > p4 result not covered by the guideline 2020 a1 < p1 a2 < p2 a3 < p3 a4 > p4 insolvent balance 2021 a1 < p1 a2 < p2 a3 < p3 a4 > p4 insolvent balance 2022 a1 < p1 a2 < p2 a3 < p3 a4 > p4 insolvent balance 2023 a1 < p1 a2 < p2 a3 < p3 a4 > p4 insolvent balance source: formed by the author based on the entity’s data. based on this study, an analysis of navoi nitrogen joint stock company’s financial statements indicates that the situation has not changed when evaluating the entity’s financial position based on balance sheet liquidity. the reason is that the amount of the entity’s short-term investments is not significant, and therefore, these investments are transferred not to a1 – the most liquid assets – but to a2. consequently, this does not lead to any changes in the ratio of assets to liabilities and equity. conclusions and recommendations based on the study, the following conclusions were drawn: 1. when classifying the balance sheet composition by liquidity, it is advisable to further detail the composition of current and non-current assets accordingly. this allows for a more accurate assessment of the entity’s financial position based on balance sheet indicators. american journal of business management, economics and banking volume 43 december2025 p a g e | 32 www.americanjournal.org 2. the entity’s financial position is evaluated based on accounting balance sheet data. for investors, this information supports economic management decisions regarding the entity’s future, while for creditors, it informs decisions on lending, including the terms and amounts of loans, as well as monitoring and forecasting loan repayments. therefore, the more precise the composition of balance sheet data, the more accurate and complete the analyses, which in turn improves the quality of decisions made. 3. for non-current assets acquired through installment payments from suppliers or contractors, or for non-current assets produced by another contractor where an advance has been paid, such assets should, from the perspective of accounting data analysis, be removed from current assets and fully accounted for as non-current assets. 4. for inventories, it is advisable to include installments provided to suppliers and contractors in the composition of inventories when conducting analyses and applying them to assess liquidity and other economic indicators. references 1. abryutina, h.c. (2000). analysis of the financial and economic activities of an enterprise. moscow: delo i servis. – 256 p. 2. adashaliev, b.v. (2024). ways to assess the impact of the solvency of economic entities on the activities of banks. abstract of phd dissertation in economics. tashkent. – 5.58 p. 3. mavlanov, n. (2019). analysis of creditworthiness of economic entities and improvement of its assessment. abstract of phd dissertation in economics. tashkent. – 5.15 p. 4. rakhimov, m.yu., & kalandarova, n.n. (2019). financial analysis. tashkent: iqtisod-moliya. 5. turdiyeva, g. (2019). improving theoretical and organizational-methodological aspects of creditworthiness analysis of economic entities. abstract. tashkent. 6. dahiyat, a. (2016). does liquidity and solvenсу affect banks profitability. evidence from listed banks in jordan. international journal of academic research in accounting, finance and management sciences, 6(1), 35-40. retrieved from https://ideas.repec. org/a/hur/ijaraf/v6y201611p35-40. html 7. emmanuel, n. r. (1997). commercial banking in an era of deregulation (3rd ed.). westport, ct: greenwood publishing group. 8. kanaan, а., saoud, a. (2018). the effect of financial leverage on profitability an applied study on non-financial companies listed on the damascus stock exchange. economic and legal sciences series, 4013), 265-280. retrieved. http://journal.tishreen.edu. sy/index.php/econlaw/article/ view 465174421 (in arabic language) 9. pardaev м (2007). financial analysis. samisi-2007. www/ziyonet/uz 10. soenen l.a. (1993). cash conversion eycle and corporate profitability, journal of cash management, vol 13 no 4 pp. 53-58. 11. udoka, с. о., аnyingang, r. (2012). an analytical and theoretical investigation of the determinants of deposit money bank's investmentin treasury bills in nigeria. european journal of business and management, 4(21), 42-48. yusoff;, h.b.m. (2017). the effect of liquidity and solveney on profitability: the case of public-listed consumer product companies in malaysia (master thesis). university tun hussein onn malaysia. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 89 www.americanjournal.org stability rating in digital fiscal governance: methodological foundations and practical effectiveness abdullayev zafarbek safibullayevich independent researcher (dsc) at tashkent state university of economics zafarbek.abdullayev555@gmail.com orcid: 0009-0000-2685-5398 tel: +99850 713 5555 a b s t r a c t k e y w o r d s this article analyzes the economic, legal, and methodological foundations of the business entity stability rating system developed under uzbekistan’s regulatory framework. the rating indicators are reviewed in comparison with international practices and evaluated in the context of digital fiscal governance and tax discipline. practical challenges in the system are identified, and improvement recommendations are proposed. the study provides theoretical insights and policy suggestions aimed at enhancing the effectiveness of fiscal reforms in uzbekistan. stability rating, fiscal governance, tax discipline, entrepreneurial entities, digital transformation, assessment indicators, automated platform, vat, turnover tax, rating methodology, fiscal reforms, international rating systems. introduction increasing fiscal discipline, tax transparency and institutional stability of business entities in the economy of the republic of uzbekistan is one of the priorities of state policy. in recent years, innovative approaches are being introduced aimed at simplifying tax administration, accelerating digital transformation and forming a trust–based public-business relationship. in particular, the system “stability rating of business entities”, which evaluates tax discipline on the basis of digital indicators, performs automated real-time analyzes, was formulated as an innovative fiscal management mechanism (mirziyoyev, 2024; aripov, 2024). based on the presidential decree pq-39 of january 23, 2024 and the cabinet of ministers resolution no. 55 of january 30, 2024, the system in question was introduced on a normative-legal and methodological basis. this rating system carries out a systematic assessment of the indicators of economic efficiency, tax discipline, financial transparency, integration into digital infrastructure and social responsibility of legal entities through a modern automated electronic platform. the results of this assessment serve as a strategic information tool for selective fiscal incentives, targeted distribution of tax and credit benefits, effective orientation of budgetary resources. at the same time, the rating system provides the opportunity to strengthen the atmosphere of mutual trust between the public–private sector, form a american journal of business management, economics and banking volume 35 april 2025 p a g e | 90 www.americanjournal.org regulatory mechanism for regulating economic behavior, and conduct tax policy on the basis of a riskbased differential approach. this article covers in depth the formation of the rating system, the legal, theoretical and methodological foundations, the classification of assessment criteria, their mechanisms of numerical analysis, as well as the practical role of the rating system in fiscal management. the methodological approach brings comparative analysis with international rating systems (s&p, esg, doing business), as well as diagnostic evaluation methods under national rating criteria. the theoretical and practical basis for improving the efficiency of the national system through improvement proposals developed by the author, algorithmic assessment, monitoring based on information technology and the application of rating results in economic policy are described. research methodology in this study, scientific and methodological foundations were developed on the basis of a comprehensive approach to the analysis and assessment of the system of stability rating of business entities. the research methodology covers theoretical, legal and statistical aspects related to the formation of the rating system, evaluation criteria and their practical application. as a research approach, descriptive (descriptive) and analytical methods were used, as well as a method of comparative analysis based on international experience. for the analysis of rating indicators, a digital monitoring approach was applied based on diagnostic assessment, their mechanisms of operation on an algorithmic basis, as well as data formed through an automated platform. the research process used national regulatory legal acts, the information platform of the state tax committee, practical slides and statistics on rating criteria as the main source of information. the study analyzed 23 rating criteria representing the economic efficiency, fiscal discipline, culture and social responsibility of legal entities. these criteria were evaluated, separated into general, reducing and stimulating indicators. the evaluation algorithm, scoring criterion and periodicity of each indicator were considered separately. also, on the basis of practical cases, the formation of rating points in the activities of certain subjects and the factors affecting it were analyzed with examples. as a sample, more than 30 subjects with different rating levels (aaa–d) were purposefully selected from within legal entities where rating assessments were determined between 2023 and 2024. the assessment examined real factors affecting the rating based on criteria such as duration of activity, tax discipline, scope of work with ehfs, salary fund, number of employees, financial stability. the reliability and accuracy of the methodological approach was justified by the inextricable relationship between indicators in the rating system, their economic and tax-legal content. the automation of the rating system, limitations of the human factor, and real-time evaluation capabilities serve to ensure the objectivity of the results. through this, the results of the rating are used not only as a fiscal management, but also as a reliable source of information in selective tax policy, credit policy and financial monitoring. analysis and results discussion the rating system is formed with reference to legal and regulatory documents, international rating experience and digital assessment tools. the system consists of 23 criteria, divided into three categories: general indicators, points-reducing indicators, and incentive indicators giving additional points. each indicator has a defined evaluation algorithm, weight coefficient and evaluation period. american journal of business management, economics and banking volume 35 april 2025 p a g e | 91 www.americanjournal.org the evaluation process is based on a 100-point scale and is carried out in real time through an automated electronic platform. the platform automatically determines the rating of the subject, assessing the data on tax, financial, labor and digital document management of the activities of legal entities on the basis of an integrated analysis. this limits the human factor and provides objectivity and transparency. also, one of the important features of the rating is that it allows you to differentiate tax administration, strengthen fiscal discipline, promote social responsibility and assess economic activity on the basis of tax burden. the methodology of the system is harmonized with international criteria (s&p, doing business, esg), adapted to local economic conditions. one of the most important components in the formation of a sustainability rating of business entities is general indicators. these indicators make it possible to assess such cases as financial stability of a legal entity, fiscal discipline, operational efficiency and infrastructure fundamentals (figure 1). figure 1. the relative weight of the total indicators in the rating. the diagram above describes the relative weight of the overall indicators in determining the stability rating of business entities. in it, the tax discipline and the profitability criteria in ebit have the highest weight, which represent the fiscal discipline and financial stability of the entrepreneur. activity duration and wage fund indicators measure operational history and social responsibility. land / property, realization through ehfs, are assessed as indicators of the culture of internal infrastructure, digital order and legal treatment in eliminating deficiencies.below is an analysis by each criterion. duration of activity. the number of years a legal entity has operated from the date of state registration is one of the main factors in determining its business life cycle and financial stability. this criterion represents the company's time-tested in a market economy, its potential to continue operations, and its ability to reduce the level of operational risks. in the scientific literature, this factor is considered on the basis of the law of gibrat and the theory of the life cycle (oecd, 2021), that is, firms with larger and longer operations are usually rated higher in terms of stability, although they have a lower growth rate. therefore, this indicator is seen as a component with a high weight in rating assessment. profitability in ebit. this indicator is used to determine the economic efficiency created as a result of the main activity of the enterprise. ebitda (earnings before interest, taxes, depreciation and american journal of business management, economics and banking volume 35 april 2025 p a g e | 92 www.americanjournal.org depreciation i.e. interest, tax, depreciation and pre-depreciation income) allows the company's financial results to be assessed without the variable impact of costs. the rate of profitability is calculated as the ratio of ebitda to net gains (ebitda margin = ebitda / income × 100%). this indicator serves as a relative measure of the financial stability of the company, the potential for debt recovery, investment attractiveness, as well as internal operational efficiency. in practical terms, this indicator is assessed in market conditions by analogy with the industry average, which makes it an objective indicator in rating assessment. land and property. this criterion expresses the fact that the business entity has the main infrastructure resources for conducting production or service activities. the presence of plots of land and real estate objects indicates that the company operates at a permanent destination, has formed the resources of property with an investment basis, and the possibility of increasing the collateral potential in obtaining a loan. viewed from a scientific point of view, this indicator indicates that the company has a longterm operating capital model, operating more capital-based activities than lease-based models. in practice, however, companies that do not have real estate ownership or long-term leases will have higher tax risk indicators because of their lower location, stability, and control levels. therefore, this criterion is important in the ranking and has a direct impact on tax transparency. salary fund. this indicator represents the official level of employment and the state of the fight against the hidden economy through the amount of the total wage fund paid to employees by the enterprise. from a scientific point of view, the growth of the wage fund means fair compensation for the number of employees and their labor, which is seen as a factor in ensuring social stability and economic inclusion. in the rating system, this criterion is assessed on the basis of mhtek (minimum wage) in uzbekistan in relation to regional and industry averages. also, this criterion indicates the openness of the enterprise on the tax base, its legal participation in the labor market and formalized jobs. in practical terms, it is recommended that dynamic monitoring and growth stability assessment mechanisms be implemented into the system in order to reduce the likelihood of obtaining rating points through an artificially increased wage fund. tax discipline. it serves to assess the timely and complete fulfillment of the tax obligations of a legal entity established by the state. tax discipline consists of two main structural elements: firstly, the filing of tax reports within the legislated deadlines, and secondly, the payment of the accrued tax amounts within the established deadlines. in the scientific literature, tax discipline is considered as an indicator that measures the level of subordination of taxpayers to fiscal laws, and it is the main factor determining the effectiveness of fiscal policy. in practical terms, high tax discipline ensures the stability of state budget revenues, makes it possible to maintain the operational database of tax authorities in a complete and updated state. therefore, in the rating system, this indicator has an assessment criterion of 10 points, which is considered a component with an important priority in objective assessment. shopping and realization through ehfs. this criterion assesses to what extent the business entity uses electronic document management (ehf) tools in business transactions and the compatibility of purchases documented through these tools with realizations. in scientific theory, this indicator is recognized as a mechanism that ensures digital fiscal discipline, tax transparency and the legitimacy of transactions with counterparties. the full and timely formalization of ehfs allows the tax authorities to conduct automated monitoring, which is an important tool in determining cases of illegal trade, hiding receipts and the use of fake enterprises. from a practical point of view, the percentage ratio is determined on the subsequent realization of the purchased goods. rating scores on unrealized goods american journal of business management, economics and banking volume 35 april 2025 p a g e | 93 www.americanjournal.org of 70% or more will be reduced, since this situation indicates the possibility of artificial inflation of internal consumption, hiding reserves or performing fake transactions. therefore, the ehf criterion is evaluated as an indicator with a high weight in the rating system. elimination of shortcomings. this indicator measures the quality and speed of the reaction indicated by the business entity in relation to the shortcomings identified by the tax authorities. in scientific theory, this indicator represents the level of institutional subordination and fiscal responsibility. the voluntary, set deadlines, and total elimination of deficiencies indicate the reliability of the subject in the tax-legal environment. in practical terms, this indicator is determined by the analysis of cases determined through the information systems of the tax authorities, and the scores are based on the following criteria: if there are no shortcomings or they are fundamentally rejected – 10 points, if voluntarily eliminated – 7 points, if the tax audit is eliminated by appointment – 5 points. through this criterion, the rating system assesses the level of self-control, tax responsibility awareness and legal awareness of the subjects. in determining the stability rating of business entities, a block of general indicators is of strategic importance, which allows a comprehensive assessment of the financial stability, fiscal discipline, social responsibility and infrastructure capabilities of the enterprise. especially in ebit, indicators of profitability and tax discipline are one of the main pillars of the rating system and represent the economic potential of the enterprise and the level of compliance with the laws. each of these general criteria ensures an objective and complex formation of the rating. by evaluating them perfectly, the chances of ensuring a healthy business environment and fiscal discipline in the country increase. for this reason, it is necessary that these criteria are focused in the rating assessment. in the formation of the stability rating of business entities, not only their positive activities are taken into account, but also negative situations in the financial, institutional and fiscal discipline. in particular, the low rating of enterprises with certain signs of risk acts as a penal (punitive) component of the rating system. through these indicators, instability in the activities of the subjects, risk of violations or lack of transparency are identified, and these cases cause a decrease in rating scores. uzbekistan's sustainability rating system has the following peculiarities when methodologically compared to the international ranking models considered above: * rating criteria are based on information collected through automated analytical platforms, integrated into tax information systems formed by the bodies of the state tax service of the republic of uzbekistan. this approach ensures minimization of the human factor in the rating assessment process, real-time monitoring, and objective assessment of the subjects ' fiscal discipline. • each rating indicator is automatically monitored in real time based on data from the state tax committee and related information systems. this process is carried out through digital traces and evaluated through algorithms that work without human intervention, which ensures impartiality and accuracy in the formation of the rating. • the system integrally evaluates the indicators of tax discipline, level of digitalization, fiscal stability, financial transparency and social responsibility of legal entities. through this approach, not only the fulfillment of tax obligations, but also the level of overall economic and social stability of the subject is analyzed on the basis of specific indicators. from a scientific and methodological point of view, uzbekistan's stability rating system differs significantly from global rating systems such as esg and doing business in terms of its main purpose, evaluation criteria and base of indicators used. the basis of this system is aimed at determining fiscal american journal of business management, economics and banking volume 35 april 2025 p a g e | 94 www.americanjournal.org activity, the quality of the fulfillment of tax obligations, the culture of maintaining digital reporting and economic behavior through automated digital assessment. while s & p global ratings is focused on identifying credit risks, uzbekistan's rating has been shaped as a tool for determining tax-specific real-time discipline. therefore, this system acts as a reliable interface that strengthens the mechanisms of fiscal management of the state, increases the effectiveness of tax administration and strengthens trust in state–business relations. conclusions and suggestions although the stability rating system is considered as an innovative tool in the analysis of the economic discipline of legal entities through digital assessment of tax and fiscal discipline, during its practical application, some methodological shortcomings and cases of abuse are being identified. the scientifictheoretical approach shows that some of the criteria cannot fully reflect the real economic efficiency of the business entity or can lead to statistical misinterpretations. in particular, certain indicators present in the rating system do not provide analytical accuracy, negatively affecting the reliability of the assessment results. also, the formulas or evaluation algorithms of certain criteria do not fully correspond to the principle of objectivity. below are the main practical shortcomings identified and systematic, theoretical and technological-based proposals for their elimination. firstly, when calculating the period of activity, taking only the date of state registration as a criterion poses the risk of incorrect assessment of the subject's real economic activity, that is, not taking into account the operational actions of the subject, such as the production, realization or service of products (work, service). this approach leads to an unreasonably high score on subjects who have not started an activity, but are registered organizationally-legally. as a result, legal entities without economic activity, but looking “young”, can remain entitled to benefits in tax policies. scientificallytheoretically, this situation negatively affects the effectiveness and fairness of the rating system and reduces the reliability of the rating as a means of financial analysis. therefore, when assessing the period of activity, it should be determined not only on the basis of the time of official registration, but also on the basis of the date of the beginning of real economic activity, for example, on the basis of the first turnover, hiring a worker or the beginning of banking operations. second, real estate availability increases the risk of artificiality in assessment when used objects are given a full score in a rating system in less than 12 months. from a scientific point of view, the duration of real estate ownership and its use should reflect the operational stability of the enterprise and its robustness in terms of infrastructure. if the object exists only on a short-term lease or in technical documents and is not in real operation, this situation leads to a false formulation of the rating. subjects are also trying to artificially increase the rating through real estate, which has been used for less than 12 months, but has been officially documented for the purpose of receiving vat refund or exemption. therefore, in the rating system, this criterion should be assessed only on the basis of the real term of use, based on the circumstances approved by objective sources such as ehf, bank transactions or utility bills. thirdly, when scoring through artificially high performance of the payroll fund, businesses are attempting to gain excess points from the rating system by showing excessively high salaries to certain employees during the short-term period. these manipulative methods can adversely affect the reliability of the rating, causing financial consequences. scientifically, this situation leads to a misinterpretation of official employment indicators and disrupts macroeconomic statistics. in practice, american journal of business management, economics and banking volume 35 april 2025 p a g e | 95 www.americanjournal.org however, it is recommended to introduce automatic monitoring mechanisms based on the dynamics of wages, employee volatility, analytical indicators on tax and insurance contributions, as well as information from electronic payment systems to determine such a situation. fourth, when making multiple adjustments to the report, the indicator reflects the weakness of the subject's internal control system (kpmg, 2022; abdullayev, 2024), the level of accuracy of accounting and the lack of a responsible approach to tax obligations. in the scientific-theoretical approach, this situation is considered in the context of information asymmetry and the problem of agency, that is, the quality and reliability of information being conveyed to state bodies decreases. in the case of amendments made especially mandatory due to technical or regulatory changes, the automatic determination of a penalty score negatively affects the fairness of the rating system. for this reason, when evaluating corrections, it is recommended that a differential penalization approach be introduced based on their causes, frequency and scale. to improve the sustainability rating system of business entities, it is necessary to introduce automated monitoring and anomaly detection algorithms in the cross section of criteria, deepen point differentiation, expand digital audit-based assessment and integrate new indicators into the system, such as export potential, environmental responsibility and innovative activities, this approach will transform the rating system from a static mechanism into a dynamic and predictive platform through this, the reliability, methodological accuracy, and digital transparency of the rating system are ensured. in the assessment process, it will be possible to reduce the human factor, more accurately express economic differences between the subjects, and strengthen the risk-based selective approach. the improved system serves not only as a monitoring and control mechanism for tax authorities, but also as a credit rating alternative for financial institutions, and as a means of self-analysis and assessment of the level of competitiveness for business entities. the stability rating is taking shape in uzbekistan as a strategic institutional basis of modern digital fiscal management (abdullayev, 2024). it serves to form a trust-based fiscal dialogue between the state and business entities, effectively managing their relationship through digital monitoring and analysis. within the framework of the rating system, key indicators such as tax discipline, financial stability, level of digitization and social responsibility of legal entities are evaluated through automatic information systems in real time. as a result, on the one hand, tax administration simplifies and subjective approaches decrease; on the other hand, the possibility of differential allocation of state resources, conducting stimulating fiscal policies and predicting economic risks arises. scientifically-theoretically, the rating system makes it possible to systematically assess the activities of business entities through complex indicators measuring economic efficiency, fiscal discipline, financial transparency and institutional stability. this approach serves as a theoretical framework in modeling economic behavior, determining risk levels, and shaping optimal regulatory relationships between the public-private sector. in practical terms, however, this system ensures that large and medium-sized business entities are encouraged on a rating basis, while small and non-formalized entities adapt to ranking criteria through tax discipline and economic activity. the rating system thus functions effectively as a mediator of the economic formalization process. american journal of business management, economics and banking volume 35 april 2025 p a g e | 96 www.americanjournal.org references 1. mirziyoyev, sh.m. (2024). pq-39 of the president of the republic of uzbekistan: on the implementation of the stability rating system. tashkent: president. [online] available at: https://lex.uz/docs/6782831 2. aripov, a.n. (2024). resolution of the cabinet of ministers of the republic of uzbekistan no. 55 of january 30, 2024. tashkent: www.lex.uz. [online] available at: https://lex.uz/docs/6823652 3. esg reporting guide (2023). environmental, social, and governance (esg) metrics: a practical guide. geneva: un global compact. [online] available at: https://www.unglobalcompact.org/library 4. fitch ratings (2023). corporate rating criteria. new york: fitch group. [online] available at: https://www.fitchratings.com 5. kpmg international (2022). sustainability reporting survey 2022. zurich: kpmg insights. 6. louche, c. and hebb, t. (2017). socially responsible investment in the 21st century: does it make a difference for society? cheltenham: edward elgar publishing. 7. abdullayev, z.s. (2024). sustainability rating of business entities: modern approaches and digital monitoring mechanisms. insurance market of uzbekistan, №2, 43-58. 8. nurmatov, sh. (2024). indicators and their weight coefficients in the rating system. scientific bulletin of the tdiu, №4, 18-26. 9. oecd (2021). digital transformation in government: tackling challenges for inclusive and sustainable growth. paris: oecd publishing. 10. s & p global ratings (2023). methodology for assessing sovereign creditworthiness. london: s&p global inc. [online] available at: https://www.spglobal.com 11. world bank (2020). doing business 2020: comparing business regulation in 190 economies. washington, d.c.c.: world bank group. 12. world bank (2024). business ready 2024: pilot framework for private sector development. washington, d.c.c.: world bank. [online] available at: https://www.worldbank.org/businessready 13. yakshiboeva, m. (2024). evaluation methodology of stability indicators in digital fiscal management. economics and innovative technologies, №6, 35-42. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 141 www.americanjournal.org theoretical aspects of formation and development of the circular economy in uzbekistan salima khashimova tashkent state technical university, associate professor of the department of “economics and management of industry,” uzbekistan a b s t r a c t k e y w o r d s the constant growth of the population and the increasing demand for resources, coupled with shortages of food, raw materials, and habitat, highlight the urgent need to study both uzbek and foreign experience to find solutions to these problems. environmental pollution, the ongoing trend of increasing carbon dioxide and other greenhouse gas emissions leading to climate change, exacerbate the previously noted problems. the paper considers and analyzes the main features and aspects of the circular economy concept, which is replacing the conventional linear economic development model. sustainable development, circular economy, linear economic model, resources, waste, environment, effect. introduction currently, the global economy is largely characterized by a linear resource consumption model. this model relies on the excessive exploitation of natural resources, often for a very short period, in contradiction to the principles of sustainable development, before returning them to the environment as waste. such a system of using resources, which are available in limited quantities on the planet, is not sustainable in the long term. the economy of any country depends on uninterrupted access to natural resources and materials, with a significant proportion of these materials often imported. this dependence can become an increasing source of vulnerability, as growing global competition for natural resources has already contributed to a significant increase in prices and can cause disruptions in sectors reliant on these resources. at the same time, the rapid growth in the extraction and exploitation of natural resources leads to a wide range of negative environmental consequences. air, water, and soil pollution, acidification of ecosystems, loss of biodiversity, climate change, and waste generation threaten economic and social well-being both in the present and in the medium and long term. not only waste reduction, but also new approaches to production, distribution, and consumption—the circular economy can help save resources and protect the environment. american journal of business management, economics and banking volume 34 march 2025 p a g e | 142 www.americanjournal.org sustainable resource use and the fight against climate change are becoming an objective necessity, shaping a new type of thinking and behavior and, accordingly, defining trends for business. the circular economy is one such trend. main part the circular economy is a model of production and consumption that involves reusing, repurposing, and recycling existing materials and products for as long as possible. it’s also known as a cyclical economy or a “closed-loop economy.” the traditional economy is based on a “take-make-dispose” model, relying on the production of large quantities of readily available materials and energy. in contrast, the core principle of the circular economy is to minimize waste generation, emphasizing the renewability of resources and aiming to restore the environment. developing a circular economy can help solve many existing problems. improving resource efficiency leads to economic benefits by reducing costs and risks while simultaneously increasing competitiveness. the circular economy is a model inspired by closed material cycles in nature, aiming to maximize the preservation of the value of products and the raw materials they contain at the end of their use. the transition to a circular economy offers benefits in four areas: resource use, the environment, the economy, and social aspects, particularly job creation. however, this transformation will inevitably require significant changes and will incur costs and expenses. the transition to a circular economy is one of today’s most important tasks and a key driver of global development. sustainable development is a key economic driver that has been actively gaining momentum in recent years, both globally and in uzbekistan. the sustainable development goals (sdgs) formulated by the un are largely implemented through the principles of esg (environmental, social, and corporate governance), which are increasingly adopted as strategies by large enterprises. the principles of the circular economy encompass all spheres of activity. therefore, cooperation between enterprises and international agreements, which create significant opportunities for new markets and partnerships, cannot be underestimated. successful commercial collaboration is characterized by industrial symbiosis, aiming for a closed production cycle where waste, residual heat, and other by-products from one enterprise are used by another. a key area for applying circular economy principles is within industrial complexes, which are a major aspect of economic development in most countries. this includes large multinational companies and corporations. industrial complexes must, of course, be considered when implementing circular economy principles. the circular economy is being applied in many areas of modern industrial complexes, including the automotive industry, the production of chemical and medical equipment, pharmaceuticals, and more [1]. for uzbekistan, the circular economy is a way to address development challenges and achieve national and sectoral strategic goals for greening the economy. it represents a comprehensive set of systemic solutions to global problems related to climate change, biodiversity loss, waste, and environmental pollution. american journal of business management, economics and banking volume 34 march 2025 p a g e | 143 www.americanjournal.org the circular economy is based on three fundamental principles: eliminating waste and pollution, circulating products and materials (at their highest value), and regenerating natural systems. these principles are supported by a transition to renewable energy sources and materials. in uzbekistan, 14 million tons of waste are generated annually, but only 4–5% of this is processed [2]. currently, most of the waste generated in uzbekistan is sent to landfills without being processed. as a result, over 7 million tons of greenhouse gases are released into the atmosphere annually, and 43,000 tons of toxic substances seep into the ground. this worsens the environmental situation, leading to air and soil pollution. waste recycling has a positive impact on the environment and brings economic benefits. uzbekistan’s commitment to developing a circular economy is further confirmed by the recently adopted presidential decree no. up-149 of september 26, 2024, “on measures to ensure transparency and further improvement of the management system in the fields of ecology and environmental protection.” the decree stipulates: beginning january 1, 2026, the tender process for contracting waste management services to businesses will be tracked online. sanitary cleaning enterprises will install video surveillance cameras at waste collection points, allowing residents to monitor operations at these locations. sanitary cleaning enterprises will be required to install online gps tracking systems on all specialized waste transportation equipment, and to cover the associated monthly expenses. a “call center” will be established to provide complete information about sanitary cleaning enterprises, receive complaints about the quality and scope of services provided, and facilitate feedback to the enterprises. reliable information will be provided about the geographical boundaries of the territories served by each sanitary cleaning enterprise, as well as the locations of waste collection points serving residents and legal entities. subscribers will be provided with information about waste removal schedules. furthermore, according to the decree: research and technological development efforts aimed at incorporating waste into the economic cycle are being developed. environmental certification of waste is being implemented. training and professional development for specialists in waste management are being provided. sanitary and hygienic requirements are being established for waste management facilities and products manufactured from waste. supervision will be conducted to ensure the safe execution of activities related to radioactive waste, including accounting, storage, transportation, processing, and disposal, based on sanitary rules, norms, and hygienic standards. public oversight of solid household and construction waste management will be implemented. in addition, the decree establishes the agency for waste management and development of the circular economy, based on the republican center for the organization of sanitary cleaning works, to act as a liaison between the public and sanitary cleaning enterprises on waste management issues. the agency will perform the following tasks: american journal of business management, economics and banking volume 34 march 2025 p a g e | 144 www.americanjournal.org ensure the seamless operation of a unified electronic system for payment and accounting of mandatory fees for the removal of solid household waste from individuals and legal entities. introduce modern methods to improve waste management, processing, and disposal, and implement the “zero waste” principle. develop and organize the implementation of measures to develop a circular economy by establishing the production of energy resources, raw materials, and materials through waste sorting and processing. take measures to create eco-industrial zones on the territory of landfills for the collection, sorting, neutralization, processing, incineration, utilization, and disposal of waste. attract loans, grants, and direct investment from international financial institutions and foreign governmental financial organizations in the field of waste management. introduce modern information and communication technologies into the waste removal industry. monitor the activities of enterprises engaged in sanitary cleaning of solid household waste and business entities, address problems and shortcomings, and assess performance indicators. this decree, in accordance with article 49 of the constitution of the republic of uzbekistan, provides for the creation of optimal conditions and mechanisms to realize citizens’ right to a favorable environment and access to reliable information about its state, as well as the implementation of a unified state policy in reforming the waste management system and in waste management in the republic, and the organization of a system to coordinate the activities of service organizations. to promote the circular economy in uzbekistan, and with financial support from the korea green growth trust fund (kggtf), the world bank has been implementing a targeted technical assistance (ta) program in the country since march 2020. this program includes analytical studies, capacity building activities, and knowledge exchange to promote the circular economy as a pathway to a “green” economy. this ta program focuses on the “agriculture-food” value chain, aiming for an in-depth assessment of measures to improve natural resource efficiency, reduce agricultural and food waste, pollution, and greenhouse gas emissions. currently, work is underway with government agencies on an action plan for implementing circular economy principles within the agro-food value chain [4]. conclusion the circular economy offers an excellent way to transform environmental challenges into economic opportunities, benefiting the environment, consumers, businesses, and the state. an analysis of official documents related to the development of the circular economy highlights the following priorities: for developed countries – changing the structure of production and consumption, fostering competition, and creating jobs; for developing countries – achieving sustainable development and addressing poverty. in practice, transitioning to a circular economy is a lengthy and complex process. according to the circularity gap report, presented annually at the world economic forum in davos, only 9% of materials in the global economy are currently reused. in uzbekistan, the circular economy is being consistently strengthened. the presidential decree of the republic of uzbekistan established the agency for waste management and development of the circular economy to drive this forward. the agency will focus on implementing modern methods for collecting, sorting, neutralizing, processing, incinerating, utilizing, and disposing of waste. by developing a circular economy, uzbekistan aims to stabilize its environmental situation, improve sanitation, and reduce the incidence american journal of business management, economics and banking volume 34 march 2025 p a g e | 145 www.americanjournal.org of dangerous diseases among the population. waste will be used to generate alternative energy, raw materials, and organic fertilizers. eco-industrial zones will be created on the sites of waste landfills. the circular economy plays a key role in achieving sustainable development by ensuring a balance between economic growth, social equity, and environmental protection. in the face of global challenges such as climate change, depletion of natural resources, and increasing waste volumes, transitioning to a circular economy is essential to ensure environmental safety and a high quality of life for future generations. references 1.платонова, и. с. применение циркулярной экономики в сфере промышленных комплексов / и. с. платонова. — текст : непосредственный // экономика, управление, финансы : материалы viii междунар. науч. конф. (г. краснодар, февраль 2018 г.). — краснодар : новация, 2018. — с. 49-53. — url: https://moluch.ru/conf/econ/archive/264/13653/ 2..как решить проблему отходов через циркулярную экономику?.https://uz24.uz/ru/articles/energiya-11-3 3. указ президента республики узбекистан, от 26 сентября 2024 года” о мерах по обеспечению прозрачности и дальнейшему совершенствованию системы управления в сферах экологии и охраны окружающей среды” № уп-149ю. 4. политические диалоги — «зеленый» рост и изменение климата в республике узбекистан: сборник информационных материалов. https://documents1.worldbank.org. 5. xashimova s. sirkulyar iqtisodiyot barqaror rivojlanish mexanizmi sifatida //yashil iqtisodiyot va taraqqiyot. – 2024. – т. 2. – №. 12. 6. xashimova s. n., mamatmo'minova z. i. the essence and stages of development of the concept of" green" economy //international journal of scientific trends. – 2024. – т. 3. – №. 6. – с. 25-32. 7. hashimova s., yakubova d., tursunova n. possibilities of expanding the mineral resource as a base of ferrous metallurgy //international scientific conference fundamental and applied scientific research in the development of agriculture in the far east. – cham: springer nature switzerland, 2023. – с. 709-717. https://documents1.worldbank.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 6 www.americanjournal.org financial resource management and theoretical foundations of accounting in higher education institutions kurbanov jaloladdin yuldashbaevich ministry of higher education, science and innovations senior specialist, accounting and reporting department a b s t r a c t k e y w o r d s this scientific work explores the formation of financial resources in higher education institutions, their efficient utilization, and the theoretical foundations of accounting. the study examines the structure of revenues and expenses, the movement of budgetary and extrabudgetary funds, principles of accounting, and the process of preparing financial statements. additionally, theoretical perspectives on enhancing the effectiveness of financial management in higher education institutions, implementing digital technologies, and aligning accounting practices with international standards are analyzed. the research findings have practical significance for ensuring the financial stability of educational institutions and improving financial management systems. higher education institution, financial resources, accounting, revenues and expenses, budgetary and extrabudgetary funds, financial management, international accounting standards. introduction today, ensuring the economic independence and financial stability of the higher education system is one of the priority directions of state policy. alongside traditional budgetary funds, attracting non-state and extrabudgetary sources, as well as their prudent management and accounting, play a crucial role in financing the activities of higher education institutions. especially during the years of independence, the diversification of income sources for higher education institutions has increased, which necessitates a fundamental improvement in their financial reporting systems. currently, reforms being carried out in uzbekistan’s higher education system under market economy conditions aim, in particular, to ensure financial independence and create conditions for educational institutions to make independent decisions regarding the financing of their activities. higher education institutions generate revenues from various sources and incur expenses based on these revenues to operate effectively. the revenues of higher education institutions mainly consist of funds from the state budget, tuition fees under contract-based education, grants, sponsorship aid, and funds generated from other economic activities. correct accounting of these revenues, economically justified expenses, and their accurate reflection in accounting are key factors in ensuring the financial stability and effective functioning of american journal of business management, economics and banking volume 40 september2025 p a g e | 7 www.americanjournal.org higher education institutions. moreover, conducting accounting in educational institutions based on modern principles, ensuring that financial reporting complies with international standards and transparency, is one of the pressing issues today. studying this topic serves to improve financial management and enhance the efficiency of the higher education system. the composition of revenues in higher education institutions is multifaceted, including income from educational processes (contract tuition fees), scientific research projects, grants, sponsorship aid, additional services, and other legal sources. expenses cover the main areas of activity financed by these revenues, such as organizing educational and scientific processes, staff salaries, development of material and technical infrastructure, and other necessary costs. accurate, transparent, and precise accounting of these revenues and expenses serves as the foundation for the effective operation of higher education institutions. effective organization of financial activities in higher education institutions, proper classification of their revenues and expenses, conducting accounting in accordance with current legislation, and making management decisions based on financial analysis are extremely important in today’s conditions. this article addresses these theoretical issues and develops proposals and recommendations for their improvement. at a time when the role of state and non-state higher education institutions is increasing under market economy conditions, their financial independence and efficient use of resources become critical factors in ensuring education quality. reforms in the education sector, especially modernization of the higher education system, improvement of economic mechanisms, and preparation of competitive personnel require enhancing the efficiency of financial management. financial resources of higher education institutions are funds necessary for their operation, development, financing scientific research, strengthening material and technical base, and other purposes related to education quality. the formation, distribution, and prudent use of these resources are controlled through accurate accounting. accounting, in turn, is of particular importance as a means of documenting, controlling, and preparing reports on the financial activities of higher education institutions. it not only determines revenues and expenses but also provides financial information that serves as a basis for management decisions. from this perspective, studying the theoretical foundations of financial resource management and organization of accounting in higher education institutions is relevant not only theoretically but also practically. deep analysis of this topic allows ensuring financial stability, increasing financial accountability, and developing effective management decisions in educational institutions. materials and methods. in the study of accounting for revenues and expenses as well as internal audit methodology in higher education institutions, foreign scholars such as r.aganina, p.andreev, g.antipova, a.glushenko, ye.egorova, n.zavodchikov, n.danilenko, a.kolesnik, v.bursev, s.optner, m.i.pavlov, r.v.pashkov, ye. samylina, a. sukalo, ya.taynen, and yu.yudenkov can be referenced. the research of local scholars also provides a wide perspective on this topic. for example, r.do'smuratov, b.jumamuratov, a.ibragimov, a.karimov, s.mexmonov, a.ostonokulov, m.q.pardaev, m.saidov, b.sugirbaev, and z.xamidova have conducted scientific studies on optimizing and regulating the revenues and expenses of the higher education system. the development of our country’s economy and the improvement of citizens’ well-being depend not only on the private sector but also on the budgets within the budgetary system. the budgets of the budgetary system serve to fulfill the state’s responsibilities towards citizens and society, provide services, stimulate and regulate economic sectors, monitor activities, and ensure employment through american journal of business management, economics and banking volume 40 september2025 p a g e | 8 www.americanjournal.org financing various non-profit activities. according to the report published by the international monetary fund in april 2023, it is observed that “during the pandemic and the global economic crisis, developed countries increased government expenditures to up to 40 percent of gross domestic product (gdp). since a large share of budgetary institutions operate in the social sector, they are significant employers with high potential to ensure employment, and expanding their financing contributes to social and economic stability.” when researching the continuous and targeted financing directions of budgetary institutions, it is first necessary to examine the structure of the country’s budget system. the budget system consists of the state budget, state targeted funds, and extrabudgetary funds of budgetary institutions (see figure 1). figure 1. budgets of the budgetary system the state budget consists of the republican budget of the republic of uzbekistan, the budget of the republic of karakalpakstan, as well as local budgets of regions and tashkent city. in turn, the structure of the republic of karakalpakstan’s budget includes the republican budget of the republic of karakalpakstan and the budgets of its districts and cities. the structure of regional local budgets includes the regional budget and the budgets of districts and cities within the respective regions. figure 2. extrabudgetary funds of higher education institutions the structure of the tashkent city local budget includes the city budget and the budgets of districts within the city. the state targeted funds are formed based on the decrees of the president of the republic of uzbekistan to implement state functions, financed from taxes, mandatory payments, fines, and budget subsidies. at the same time, the state targeted funds are part of the consolidated budget of the republic of uzbekistan. funding of higher education institutions is carried out from both state budget budgetary system budgets of state targeted funds extrabudgetary funds of budgetary institutions extrabudgetary funds of higher education institutions development fund of a budgetary institution tuition fee-based education other extrabudgetary funds american journal of business management, economics and banking volume 40 september2025 p a g e | 9 www.americanjournal.org budgetary and extrabudgetary funds. the extrabudgetary funds of higher education institutions include the development fund and extrabudgetary funds formed from collected fees (figure 2). the financing of higher education institutions is carried out through the structural components of the budget system mentioned above, taking into account their specific characteristics. that is, the financing of higher education institutions is conducted from the state budget as well as from their own extrabudgetary funds. an important point is that the financing of higher education institutions is directly related to their areas of activity. according to analyses by the international internal auditors institute, “higher education institutions are classified into three main types. first, organizations accountable to regional management bodies, ministries, and departments established in accordance with central government regulations. second, agencies consisting of organizations and institutions that provide state services and belong to the government. third, government-independent institutions that operate independently, have their own sources of income, and produce goods and services.” attention to these levels is recommended in the financing and control of higher education institutions. when classifying higher education institutions financed from the state budget according to their activities and directions, the majority are organizations accountable to ministries and departments established in accordance with established procedures. in this context, the tuition fee-based form of education in state educational institutions holds the largest share. despite the undeniable necessity of financially supporting the social sector based on recommendations from international organizations amid the globalization of current economic crises, it is also required to optimize state budget expenditures and gradually reduce the tax burden based on the demands of the market economy. as our country’s leader emphasized, “in the past four years, serious steps have been taken to introduce market mechanisms into all sectors of our economy. the next task is to lay the foundation for longterm sustainable growth through deep structural reforms.” while preserving the social orientation of state budget expenditures, various reforms have been implemented to reduce tax and budget burdens in line with the immutable demands of the market economy and to expand financing in budget organizations through the formation of extrabudgetary sources. considering the specifics of higher education institutions’ activities, it is necessary to pay serious attention to creating extrabudgetary sources of financing, especially in the social sector, where a high proportion of state budget expenditures is directed, particularly education institutions. increasing the share of extrabudgetary funds in sector institutions will help reduce the budget burden somewhat and, by ensuring material incentives in accordance with market economy demands, will promote the development of activities. for each fiscal year, separate income and expenditure estimates are prepared for each extrabudgetary fund of higher education institutions. each estimate consists of two parts: income (revenue) and expenditure plans. the income plan presents a forecast of the expected revenue types during the fiscal year. the expenditure part reflects the planned expenses based on the extrabudgetary fund balance in the institution’s personal treasury account at the beginning of the fiscal year and the expected incoming funds during the fiscal year. when forming the expenditure part of the estimates for extrabudgetary funds in higher education institutions, calculations rely directly on accounting and financial reporting data. the ministry, department, committees, and financial authorities overseeing the higher education institution analyze accounting information systems and financial reports to register consolidated and individual estimates for extrabudgetary funds in these institutions. the execution of estimates for the extrabudgetary funds of higher education institutions focuses on the fulfillment of planned income and expenses by types of funds. in the treasury, the estimates for american journal of business management, economics and banking volume 40 september2025 p a g e | 10 www.americanjournal.org extrabudgetary funds of higher education institutions are accounted for using the cash method, meaning that cash inflows to the institution’s personal treasury accounts are recorded as income, and cash outflows from these accounts are recorded as expenses. within the higher education institutions themselves, the execution of estimates is carried out based on both accrual and cash accounting methods. initially, revenues and related receivables for extrabudgetary funds are recorded in the higher education institutions. subsequently, the increase in extrabudgetary cash funds is accounted for as a result of receivables being received into the institution’s personal treasury accounts. the execution of the expenditure plan for extrabudgetary funds is recorded in the treasury similarly to income, using the cash method. that is, expenditures are recognized when cash is disbursed from the institution’s personal treasury accounts. however, within higher education institutions, expenses for extrabudgetary funds are initially recognized on an accrual basis. cash disbursements from personal treasury accounts are recorded as a result of settlements with debtors and creditors and recognized as cash expenses. both in the treasury and in higher education institutions, the execution of estimates must be carried out according to the approved plan. therefore, the execution of each extrabudgetary fund estimate must be organized and continuously accounted for both in the higher education institutions and in the treasury. income. in accounting and financial reporting for higher education institutions, terms such as revenues and receipts related to extrabudgetary funds are used. revenues represent an increase in the net value of an institution’s assets and/or a decrease in its liabilities. receipts refer to the cash inflows related to the recognized revenues into personal accounts. revenues in higher education institutions arise from the development fund, tuition fees under contract-based education, and other extrabudgetary funds. currently, the accounting of revenues related to extrabudgetary funds in higher education institutions is maintained on an accrual basis. in the financial authorities and treasury, the accounting of revenues is conducted based on cash receipts to the institutions' personal treasury accounts. financial authorities and treasury do not prepare financial reports on accrued or expected revenues from extrabudgetary funds of the institutions. experiences from developed countries and international accounting standards for the public sector require a gradual transition from the cash method to the accrual method in budget execution accounting. reforms aimed at ensuring transparency of budget execution data have led financial authorities and treasury to adopt accrual accounting for revenues related to extrabudgetary funds. this requires the recognition of “accrued revenues” in the budget treasury execution accounting system for extrabudgetary funds. accrued revenues of higher education institutions for extrabudgetary funds represent amounts recognized based on primary documents that will result in cash inflows to the institution. expenses. expenses represent a decrease in the net value of an institution’s assets and/or an increase in its liabilities. in higher education institutions, expenses are incurred for contract-based education, development funds of budgetary organizations, and other extrabudgetary funds. the accounting of expenses related to extrabudgetary funds is conducted on an accrual basis. these expenses arise from the need to use extrabudgetary funds, such as prepayments and settlement of existing creditor liabilities. financial authorities and treasury recognize expenses as cash outflows from the institution’s accounts. since the budget treasury execution system is applied, financial reports provided by higher education institutions include indicators of both cash expenses and actual expenses related to extrabudgetary funds. actual expenses are those recognized and recorded based on primary documents of the american journal of business management, economics and banking volume 40 september2025 p a g e | 11 www.americanjournal.org institution, whereas cash expenses relate to the disbursement of extrabudgetary funds from accounts. this situation shows that current information about expected cash expenditures from extrabudgetary funds is not prepared by financial authorities and treasury, which hinders the formation of forecast indicators for fund disbursements from treasury accounts. in order to transparently and effectively implement their activities, budget organizations are obliged to submit financial and other types of reports within the specified periods. timely submission of reports ensures effective management of public finances, serves the rational use of financial resources and the effectiveness of control. therefore, deadlines for submission of reports by budget organizations are strictly defined, and their implementation is important for maintaining stability and reliability in the budget system. when compiling reports, all transfers registered in all account registers used in accounting, transactions related to accounting, and all information during activity are used. table 1 deadlines for submission of reports by budget organizations t / p report names submission deadlines reports submitted by state educational organizations quarterly annual 1 balance sheet (form no. 1) ˅ ˅ ˅ 2 report on the results of financial activity ˅ ˅ ˅ 3 report on the implementation of the cost estimate (form n. 2) ˅ ˅ ˅ 4 information on receivables and payables ˅ ˅ ˅ 5 report on the movement of funds of the budget organization development fund ˅ ˅ ˅ 6 report on the movement of funds of the fund for material promotion and development of medical organizations ˅ ˅ ˅ 7 report on the movement of funds received from the payment-contract form of training in educational institutions ˅ ˅ ˅ 8 report on the movement of other extrabudgetary funds ˅ ˅ ˅ 9 report on the movement of inventories and non-financial assets ˅ ˅ 10 report on the movement of foreign currency funds of the budget organization ˅ ˅ ˅ "budget organizations connected to the "uzasbo" software package (hereinafter referred to as the software package) shall submit financial reports in electronic form using an electronic digital signature to the relevant treasury departments or the person distributing budget funds. financial reports submitted electronically through the software package shall be printed on paper in one copy and signed by the head and chief accountant of the reporting organization. signed financial reports shall be stored in the reporting organization in accordance with the established procedure." the timely submission of reports by budget organizations is one of the main conditions for monitoring financing processes and ensuring financial responsibility. timely and complete reports contribute to the efficient allocation of state resources and the transparency of budget processes. at the same time, american journal of business management, economics and banking volume 40 september2025 p a g e | 12 www.americanjournal.org strict adherence to the deadlines for submitting reports strengthens the financial discipline of budget organizations and increases the efficiency of financial management. this plays an important role in ensuring the transparency and sustainability of public finances. conclusion. the necessity of financing higher education institutions from extrabudgetary funds in line with market economy requirements has become an undeniable reality, and the share of extrabudgetary funds in the financing structure of institutions is steadily increasing. this necessitates the development of regulatory frameworks related to the generation and use of extrabudgetary revenues in higher education institutions. currently, the sources of financing for higher education institutions include state budget financing, development fund resources, tuition fees from contract-based education, and other extrabudgetary funds. since all financing sources are part of the budget system under legislation, the accounting and reporting of related revenues and expenses, as well as cash flow management, must comply with the budget treasury execution system. however, the generation of revenues, receipt of funds, incurrence of expenses, and disbursement of related cash in higher education institutions significantly differ from treasury execution. given the specifics of their operations, higher education institutions must consider the timing of revenue recognition, acknowledgement of revenues and receipts, consistency between revenues and expenses, classification and financing of expenses, and the theoretical foundations of fund accounting for each source of financing, reflecting their unique characteristics. references 1. abdullayeva sh., qurbonov q. accounting: textbook. – tashkent: “iqtisod-moliya,” 2020. 2. tursunov b.o., urozboev m.o. financial reporting and analysis. – tashkent: “fan va texnologiya,” 2021. 3. saidova m.a. modern approaches to financial management in the higher education system // economy and innovative technologies. – 2022. – n.4. 4. reports and methodological recommendations of the treasury department under the ministry of finance. – www.mf.uz 5. horngren c.t., sundem g.l., elliott j.a. introduction to financial accounting. – pearson education, 2019. 6. melnik m.v. accounting in budgetary institutions. – moscow: unity-dana, 2020. 7. tarmetov sh.x., komilov b.b. accounting of the state budget and extrabudgetary funds. – tashkent: “iqtisodchi,” 2019. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 86 www.americanjournal.org employment policy in regions and strategies for the development of human capital g’ayrat ubaydullayev zuvaytovich karshi state technical university candidate of economic sciences, associate professor a b s t r a c t k e y w o r d s this article examines the employment policies implemented in various regions and their impact on the development of human capital. it explores strategic approaches aimed at enhancing workforce skills, improving labor market efficiency, and fostering sustainable regional economic growth. the study highlights the importance of coordinated policy measures to address regional disparities and promote inclusive employment opportunities that contribute to the overall advancement of human capital. employment policy, regional development, human capital, labor market, workforce skills, economic growth, regional disparities, employment strategies. introduction the development of human capital is widely recognized as a fundamental driver of economic growth and social progress. in this context, regional employment policies play a critical role in shaping labor market dynamics and enhancing the skills and productivity of the workforce. diverse economic, social, and demographic conditions across regions necessitate tailored employment strategies to effectively address local challenges and opportunities. this study aims to analyze how employment policies at the regional level contribute to the development of human capital by promoting workforce participation, skill enhancement, and sustainable employment. understanding these interrelations is essential for designing comprehensive strategies that reduce regional disparities and support inclusive economic development. main body effective regional employment policies play a crucial role in the development of human capital. for example, if a region has a youth unemployment rate of 20%, the introduction of targeted vocational training programs can increase youth employment by up to 30%. this demonstrates how enhancing skills and competencies directly contributes to human capital development. in uzbekistan, for instance, practical skill development courses introduced in the tashkent region in 2022 resulted in a 25% increase in employment rates among participants. these programs provided not only theoretical knowledge but also hands-on experience in production processes. consequently, american journal of business management, economics and banking volume 36 may2025 p a g e | 87 www.americanjournal.org employers gained access to a more skilled workforce, which positively impacted overall employment levels. furthermore, the establishment of innovation clusters within regional economies serves as an effective mechanism for human capital enhancement. the it cluster in tashkent, for example, supported around 40 new highly qualified specialists through training and mentorship programs for startups and young innovators. this initiative translated innovative ideas into practical economic activities, generating high added value within the region. social inclusion policies also significantly influence the comprehensive development of human capital. in surkhandarya region, vocational retraining courses for unemployed women led to a 15% rise in female employment. this outcome highlights the importance of integrating all social groups into economic activities to ensure regional economic stability. moreover, fostering collaboration between employers and educational institutions is essential for shaping a competent workforce. in samarkand region, technical colleges partnered with employers to design curricula aligned with labor market demands and arranged practical internships for students. as a result, graduate employment opportunities increased by 35%. in summary, the effectiveness of regional employment policies and human capital development strategies relies on implementing specialized programs, introducing innovations, promoting social inclusivity, and aligning education systems with labor market needs. these measures not only improve employment but also contribute significantly to regional economic growth. practical approach description example targeted vocational training programs providing specific skill development to unemployed groups to increase employability in tashkent, youth vocational training reduced unemployment by 25%, equipping participants with market-relevant skills. innovation clusters development creating hubs for startups and innovators to foster knowledge sharing and high-skilled employment the it cluster in tashkent trained 40+ specialists and supported startup development, boosting local high-tech jobs. social inclusion policies integrating marginalized groups into the labor market through tailored training vocational retraining for women in surkhandarya increased female employment by 15%, promoting economic participation. employer-education collaboration aligning curricula with labor market needs and offering internships in samarkand, partnerships between technical colleges and businesses increased graduate employment by 35%. digital skills enhancement initiatives offering online courses and certifications to improve digital literacy remote digital literacy programs in rural areas enabled 200+ individuals to access new jobs in the it sector. entrepreneurship support programs providing mentoring and funding to small business founders startup incubators in fergana valley helped launch 50 new small businesses, creating jobs and boosting local economies. continuous professional development (cpd) schemes regular upskilling opportunities for employees in evolving industries manufacturing firms in navoi organized cpd workshops, improving workers’ efficiency and reducing job turnover. american journal of business management, economics and banking volume 36 may2025 p a g e | 88 www.americanjournal.org employment policy in regions and strategies for the development of human capital in today’s dynamic and knowledge-driven economy, regional employment policies can no longer be limited to creating jobs alone. instead, they must be deeply intertwined with strategies that enhance and mobilize human capital — the most vital driver of long-term regional development. fostering innovation, promoting inclusive growth, and ensuring resilience in regional labor markets requires a creative, human-centered approach. tailored skill development programs each region has its own unique economic strengths and labor market needs. one creative strategy is to design skill development programs that are tailored to the region’s key industries. for instance, in an area known for its textile production, vocational training centers can offer courses not only in traditional garment-making but also in fashion design software, digital embroidery, and eco-friendly fabric innovation. by aligning employment policies with local specialties, human capital is developed in ways that directly support regional economic growth. youth innovation hubs and green jobs establishing youth innovation hubs in underdeveloped regions can significantly reduce brain drain and unemployment. these hubs act as creative spaces where young professionals receive mentoring, engage in project-based learning, and launch social or environmental start-ups. for example, in a mountainous region rich in natural beauty, a group of young entrepreneurs created an ecotourism platform using drone photography and virtual tours, providing both employment and sustainable economic stimulation. these hubs link employment with creativity, encouraging youth to stay and invest in their home region. mobile learning units for rural areas to bridge the urban-rural divide, mobile learning units can be introduced — buses or vans equipped with digital technologies and trainers that travel to remote areas to deliver training in entrepreneurship, digital literacy, or agritech. in one farming region, such a unit taught local women how to use mobile applications to sell their produce directly to consumers, increasing their income and confidence. these mobile learning centers help develop human capital even where access to traditional education or training is limited. public-private-academic partnerships innovative employment policies also require synergy between government, private businesses, and academic institutions. in one industrial city, a collaboration between a university, a local tech company, and the municipality led to the creation of a coding bootcamp for unemployed graduates. participants worked on real company projects during training, and most were hired upon completion. these types of partnerships ensure that human capital is nurtured with real-world, in-demand skills. inclusive employment for marginalized groups regional employment strategies should focus on inclusion. in a border region with a high number of disabled residents, local authorities partnered with ngos to establish a digital freelancing center. here, individuals with physical disabilities were trained in graphic design, content writing, and online american journal of business management, economics and banking volume 36 may2025 p a g e | 89 www.americanjournal.org customer service. through remote work platforms, they accessed global clients without leaving their hometown. this example highlights how inclusive employment policies can unlock hidden potential within a community. re-skilling and up-skilling programs during economic shifts during times of economic transition, such as the closure of a mining facility or a shift from manual agriculture to tech-based farming, human capital strategies must focus on re-skilling. in one region transitioning from heavy manufacturing to renewable energy, former factory workers were offered training in solar panel installation and energy auditing. this allowed them to smoothly transition into new, greener jobs without relocating. such programs ensure that no one is left behind in the face of economic change. cultural capital and creative industries regions with strong cultural heritage can leverage it to create employment through the creative economy. for example, in a historic town known for its pottery, artisans were trained in digital marketing and e-commerce, enabling them to sell their products internationally. a small cultural museum was turned into a creative co-working space for artists and designers, transforming culture into a living source of income and pride. conclusion effective regional employment policies play a pivotal role in fostering sustainable economic growth by enhancing human capital development. the strategic implementation of targeted vocational training, innovation clusters, and employer-education collaborations significantly bridges the skills gap, aligning workforce competencies with evolving market demands. furthermore, inclusive policies that integrate marginalized populations ensure equitable access to employment opportunities, promoting social cohesion and economic resilience. digital literacy initiatives and entrepreneurship support further empower individuals to adapt to the dynamic labor market, driving regional competitiveness. therefore, a multifaceted approach that combines policy innovation, practical skill development, and stakeholder cooperation is essential for optimizing human capital and achieving long-term regional prosperity. references 1. axmedov, s. (2020). mintaqaviy mehnat bozori va bandlik siyosati. toshkent: iqtisodiyot nashriyoti. 2. qo‘ldoshev, m. (2019). inson kapitalini rivojlantirish strategiyalari. toshkent: o‘zbekiston fanlar akademiyasi. 3. tursunov, b. (2021). iqtisodiy innovatsiyalar va bandlik masalalari. samarqand: samarqand davlat universiteti nashriyoti. 4. rasulova, d. (2018). mintaqaviy iqtisodiy taraqqiyot va mehnat resurslari. toshkent: iqtisodiy tadqiqotlar markazi. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 23 www.americanjournal.org overview of public-private partnerships and financial risks aseliya safina master’s student at tashkent state university of economics abdullaev anvarjon farxadovich tashkent state university of economics, phd., associate professor a b s t r a c t k e y w o r d s concise summary of the article's content and key findings. this comprehensive article provides a detailed analysis of the financial risks associated with public-private partnerships (ppps). the annotation offers a concise yet informative summary of the study's key findings, highlighting the critical challenges and considerations that decision-makers must navigate when engaging in these collaborative ventures. the article examines a range of financial risks, including cost overruns, revenue shortfalls, and debt financing issues, drawing on case studies and empirical data to illustrate the complexities involved. the annotation sets the stage for the in-depth exploration of the topic, introducing the reader to the methodological approach, the analysis of results, and the practical implications for practitioners working in the field of ppp project development and management. list of relevant terms and concepts public-private partnerships (ppps) introduction public-private partnerships (ppps) have become an increasingly popular approach for governments to collaborate with the private sector in delivering public infrastructure and services. while these partnerships offer potential benefits, they also come with significant financial risks that must be carefully managed. this section will provide an overview of ppps and explore the various financial risks that can arise in these complex arrangements. ppps refer to collaborative arrangements between the public sector and private entities to finance, build, and operate infrastructure projects or provide public services. these partnerships leverage the expertise and resources of both parties to achieve mutually beneficial outcomes. financial risks financial risks in ppps include cost overruns, revenue shortfalls, interest rate fluctuations, currency exchange risks, and political and regulatory uncertainties that can impact the financial viability of the project. american journal of business management, economics and banking volume 36 may2025 p a g e | 24 www.americanjournal.org risk allocation risk allocation is the process of identifying, analyzing, and assigning risks to the party best equipped to manage them. effective risk allocation is crucial for the success and sustainability of ppp projects. project finance project finance refers to the financing of large-scale infrastructure projects, where the project's cash flows and assets are used as collateral, rather than the balance sheets of the sponsoring entities. literature review this section provides an overview of the relevant academic and industry research on the financial risks associated with public-private partnerships (ppps). a comprehensive review of the literature reveals that ppps can expose both public and private entities to a range of financial risks, including construction cost overruns, revenue shortfalls, and contractual disputes. several academic studies have examined the unique financial challenges of ppps compared to traditional public procurement methods. sarmento and renneboog (2016) conducted a meta-analysis of 30 studies on ppp projects, finding that cost overruns and revenue underperformance were common issues. della croce and gatti (2014) highlighted the importance of risk allocation and mitigation strategies in ensuring the financial viability of ppp projects. industry reports have also shed light on the financial pitfalls of ppps. a deloitte (2018) study on global infrastructure projects found that over 50% of ppps experienced cost overruns, while a kpmg (2017) survey of australian ppp projects identified issues such as poorly defined contractual terms and underestimated maintenance costs. methodology to analyze the financial risks associated with public-private partnerships (ppps), we employed a multipronged research approach. first, we conducted an extensive literature review, examining academic studies, industry reports, and government publications to identify the key financial risks commonly encountered in ppp projects. this allowed us to develop a comprehensive understanding of the theoretical underpinnings and empirical evidence surrounding ppp financial risks. next, we leveraged a case study methodology, selecting several high-profile ppp initiatives across different sectors and geographies. through detailed analysis of project documents, financial statements, and stakeholder interviews, we examined the specific financial risks that materialized in these case studies, as well as the strategies employed by the public and private partners to mitigate and manage those risks. this approach enabled us to derive practical insights and lessons learned that can inform future ppp decision-making. finally, we synthesized our findings from the literature review and case studies to propose a financial risk assessment framework for ppp projects. this framework outlines the key risk categories, their potential impacts, and recommended mitigation strategies. we tested and refined this framework through a series of workshops with ppp experts and practitioners, ensuring its relevance and applicability in the real-world context. american journal of business management, economics and banking volume 36 may2025 p a g e | 25 www.americanjournal.org analysis and results: detailed examination of financial risks in public-private partnerships this section delves into the detailed analysis of the various financial risks associated with publicprivate partnership (ppp) projects. through rigorous case studies and data-driven insights, we uncover the key factors that contribute to the financial vulnerabilities of these complex arrangements. • unrealistic revenue projections: one of the primary financial risks in ppps is the tendency for overoptimistic revenue forecasts, leading to funding shortfalls and cost overruns. our analysis of several case studies across different sectors reveals a pattern of inflated ridership projections, inaccurate demand modeling, and underestimated operating expenses. • inadequate risk allocation: the distribution of risks between the public and private partners is often imbalanced, with the public sector bearing a disproportionate share of the financial burden. this can result in significant liabilities for the government and taxpayers, especially in the event of project failures or economic downturns. • complexity and lack of transparency: the intricate nature of ppp contracts, with their multifaceted financial structures and legal frameworks, can create a lack of transparency and accountability. this can lead to opaque decision-making processes, hidden costs, and challenges in oversight and monitoring. • ineffective project governance: weak governance structures, poor coordination between stakeholders, and inadequate risk management practices can contribute to financial instability and increased costs over the life of a ppp project. the findings from our comprehensive analysis highlight the critical need for rigorous financial due diligence, robust risk management strategies, and enhanced transparency in the planning and execution of public-private partnership initiatives. limitations and future research this study acknowledges several limitations that provide opportunities for future research. first, the analysis was limited to a specific set of public-private partnership case studies, which may not be representative of all such arrangements. expanding the research to a broader sample of projects across different sectors and geographical regions could yield additional insights. additionally, the study relied primarily on publicly available data and documents, which may not capture the full complexity of financial risk management in these partnerships. gaining access to internal records and conducting interviews with key stakeholders could provide a more in-depth understanding of the challenges and mitigation strategies employed. another limitation is the relatively short time frame examined, as many public-private partnerships span decades. longitudinal studies that track the evolution of financial risks and risk management practices over the life cycle of these projects would be valuable. moreover, this research focused on the perspective of the public sector partner; exploring the private sector's experience and decisionmaking processes could offer a more holistic view of the financial risks and their management. finally, this study utilized a qualitative, case-study approach. complementing this with quantitative analyses, such as econometric modeling or simulation-based risk assessments, could provide additional insights and enable more rigorous hypothesis testing. incorporating financial and operational data from a larger sample of public-private partnerships would further strengthen the generalizability of the findings. american journal of business management, economics and banking volume 36 may2025 p a g e | 26 www.americanjournal.org practical implications the findings from this study offer valuable insights for decision-makers involved in public-private partnership (ppp) projects. by understanding the key financial risks associated with ppps, government officials, private sector partners, and project managers can take proactive steps to mitigate these risks and ensure the long-term success and sustainability of these complex arrangements. for government entities, the analysis highlights the importance of conducting thorough due diligence, accurately estimating project costs, and negotiating robust risk-sharing mechanisms with private partners. by anticipating and planning for potential financial pitfalls, public officials can make more informed decisions and protect taxpayer interests. furthermore, the study's recommendations on monitoring and reporting structures can help strengthen oversight and accountability throughout the ppp lifecycle. private sector partners can also leverage the insights from this research to enhance their own risk management practices. by aligning their investment and operational strategies with the identified financial risks, companies can better position themselves to navigate the complexities of ppp projects and achieve mutually beneficial outcomes with their public counterparts. the case studies and datadriven analysis provide a valuable reference for private firms seeking to navigate the ppp landscape more effectively. ultimately, the practical implications of this study underscore the critical need for collaborative, evidence-based decision-making in the realm of public-private partnerships. by working together to address financial risks proactively, government and private sector leaders can unlock the full potential of ppps to deliver innovative, cost-effective, and sustainable infrastructure solutions to communities around the world. conclusion in conclusion, this analysis has uncovered a range of critical financial risks inherent in public-private partnerships (ppps). through a comprehensive examination of case studies and industry data, we have identified several key findings with significant implications for practitioners involved in ppp project planning and management. first and foremost, the research highlights the importance of rigorous financial modeling and risk assessment to accurately account for potential cost overruns, revenue shortfalls, and other financial pitfalls that can jeopardize the viability of these complex arrangements. failure to properly quantify and mitigate these risks can lead to unsustainable debt burdens, project failures, and significant losses for both public and private partners. additionally, the findings underscore the need for robust governance structures, transparent reporting, and strong oversight mechanisms to ensure accountability and protect the public interest. without these safeguards, ppps are vulnerable to mismanagement, corruption, and conflicts of interest that can erode public trust and undermine the intended benefits of these partnerships. lastly, the analysis highlights the importance of aligning the incentives and risk-sharing mechanisms between the public and private sectors to ensure a fair and equitable distribution of both the risks and rewards associated with ppp projects. overall, the insights gleaned from this research provide important guidance for policymakers, government officials, and private sector stakeholders seeking to navigate the complex landscape of public-private partnerships and minimize the financial risks inherent in these endeavors. by heeding american journal of business management, economics and banking volume 36 may2025 p a g e | 27 www.americanjournal.org these lessons, decision-makers can work to create more robust, sustainable, and mutually beneficial ppp arrangements that deliver genuine value to the communities they serve. references 1. akintoye, a., beck, m., & hardcastle, c. (2003). public-private partnerships: managing risks and opportunities. wiley-blackwell. 2. grimsey, d., & lewis, m. k. (2004). public private partnerships: the worldwide revolution in infrastructure provision and project finance. edward elgar publishing. 3. yescombe, e. r. (2007). public-private partnerships: principles of policy and finance. butterworth-heinemann. 4. hodge, g. a., & greve, c. (2005). the challenge of public-private partnerships: learning from international experience. edward elgar publishing. 5. deloitte (2010). closing the infrastructure gap: the role of public-private partnerships. deloitte development llc. 6. engel, e., fischer, r., & galetovic, a. (2014). the economics of public-private partnerships: a basic guide. cambridge university press. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 51 www.americanjournal.org attraction directions of foreign investments in terms of investment environment attractiveness tirkashev farruxjon khоlyigitovich independent researcher a b s t r a c t k e y w o r d s the article analyzes the main directions of attracting foreign investments based on the concept of investment environment attractiveness. investment environment attractiveness is a set of factors that determine a country’s or region’s potential to attract investors. the study examines how economic, political, legal, social, and infrastructural factors affect investment attractiveness. additionally, it considers incentives created for foreign investors, free economic zones, tax benefits, and government support mechanisms. investment environment, investment attractiveness, foreign investments, attracting investments, free economic zones, tax incentives, public-private partnership, innovation, export, economic policy, infrastructure, investors, investment strategy, economic development, international experience, investment policy. introduction the concept of investment environment attractiveness reflects a country or region’s ability to attract investors and is an important factor for economic development. the quality and conditions of this environment play a significant role in attracting foreign investments. in recent years, many countries, including uzbekistan, have been developing policies aimed at improving the investment environment and creating favorable conditions for investors. this article examines the main directions for attracting foreign investments based on the concept of investment environment attractiveness. the research focuses on analyzing economic, political, legal, and social factors, while also considering investment areas such as innovative sectors, export-oriented production, and public-private partnerships. analysis and result in today’s process of globalization, attracting investments and efficiently directing them is a key factor in the economic development of countries. especially within the “new uzbekistan” development strategy, economic liberalization, increasing the share of the private sector, and creating a favorable investment environment are prioritized directions. from this perspective, financial mechanisms play an indispensable role in supporting and stimulating investments. american journal of business management, economics and banking volume 41 october2025 p a g e | 52 www.americanjournal.org in recent years, systematic reforms aimed at encouraging investment activities have been implemented in our country, creating favorable conditions for both foreign and domestic investors. financial institutions, banking systems, investment funds, and other financial instruments play a crucial role in this process. at the same time, the need to introduce and improve financial mechanisms that meet modern economic demands is increasing. the main directions for enhancing the attractiveness of the investment environment and attracting foreign investments include: improving legislation, providing tax incentives and preferences, reducing administrative barriers, developing infrastructure, directing investments to strategic sectors of the economy, and offering additional services to investors. in the modern global economy, the attractiveness of the investment environment is a decisive factor in ensuring a country’s economic growth, technological renewal, and competitiveness. particularly important is the presence of a stable, open, and predictable investment environment for attracting foreign investments. from this point of view, investment attractiveness is defined not only by existing economic indicators but also by institutional stability, legal protection, infrastructure development, human capital, and the investor-friendliness of state policies. foreign investors consider a number of factors when investing in a country. the main ones include: figure 1. key factors influencing foreign investors to invest in the country in the context of new uzbekistan, extensive reforms are being implemented in these directions. notably, within the framework of the ministry of investments, industry, and trade, the expansion of “one stop shop” services, cooperation with international arbitration institutions for resolving investment disputes, as well as the increase in the number of special economic zones and technoparks, are creating additional conveniences for foreign investors. geopolitical stability and regional integration — political security, international relations, and participation in integration processes enhance a country's investment attractiveness.. legal guarantees and protection of investors' rights — the clarity and stability of the legislative framework regulating investment activities create a climate of trust for foreign investors. tax and customs incentives – the level of taxation, customs regulations, and preferences play an important role for investors. financial infrastructure and credit-financial mechanisms – a developed banking system, investment funds, insurance companies, and capital markets serve to effectively channel foreign investments. labor market and human capital – the availability of skilled labor, wage levels, and social guarantees are key indicators for foreign investors. american journal of business management, economics and banking volume 41 october2025 p a g e | 53 www.americanjournal.org furthermore, the development of digitalization and the “electronic government” system ensures transparency of public services and reduces the risk of corruption, which directly contributes to increasing the attractiveness of the investment environment. thus, a comprehensive approach to enhancing investment environment attractiveness in attracting foreign investments—a strategy based on the harmony of institutional, legal, economic, and technological factors—is of great importance. effectively attracting foreign investments is today one of the main factors determining the competitiveness of countries. ensuring the attractiveness of the investment environment is achieved not only through individual measures or short-term incentives but through a broad, interconnected, and systematic approach known as the investment ecosystem (i.e., a complex environment supporting investments). an investment ecosystem is an integrated system of all economic, institutional, legal, and social factors that create a favorable, stable, and attractive investment environment for foreign and local investors. within this ecosystem, the following structural elements stand out: table 1 investment environment attractiveness in the context of foreign investment attraction ecosystem legal and economic infrastructure institutional environment financial infrastructure infrastructure factors human capital and innovation potential legislation protecting investors' rights; mechanisms for resolving investment disputes (including the possibility of recourse to international arbitration); freedom of contract and guarantees of property rights. investment promotion agencies (e.g., "uzinvest"); public-private partnership institutions; service delivery system based on the “one stop shop” principle. credit mechanisms and reliability of the banking system; availability of capital markets, stock exchanges, and venture funds; insurance and guarantee systems. transport and logistics systems (roads, railways, airports); electricity, water, and telecommunications services; special economic zones and technoparks. availability of skilled labor; higher education and research institutions; development of an innovative environment and startup ecosystem. today, the attractiveness of the investment environment is formed not simply by a collection of separate factors, but through an integrated and continuously functioning investment ecosystem. the comprehensive development of this ecosystem in the country plays a crucial role in strengthening foreign investors’ confidence and accelerating economic growth. therefore, in new uzbekistan’s investment policy, the consistent improvement of every link in this system is recognized as a pressing priority. in the context of globalization and economic integration, foreign direct investment serves as a vital factor for any country’s economic development, competitiveness, and technological innovation. the volume and quality of foreign investment flows directly depend on the attractiveness of the investment environment created in the country, institutional stability, and the openness and reliability of economic policies. in new uzbekistan, attracting foreign investments is recognized as one of the state policy’s priority directions, with comprehensive reforms being implemented in this regard. by improving the investment environment, expanding the activities of free economic zones, and enhancing tax and customs incentives, favorable conditions are being created for foreign investors. american journal of business management, economics and banking volume 41 october2025 p a g e | 54 www.americanjournal.org figure 2. foreign direct investment inflows in billion usd and their percentage share of gdp according to statistical data, the volume of foreign direct investment (fdi) attracted to uzbekistan fluctuated from 2020 to 2024. in 2020, this figure amounted to 1.73 billion usd, while by 2024 it had increased to 3.87 billion usd. additionally, the ratio of fdi to gross domestic product (gdp) also changed, rising from 2.8% in 2020 to 3.3% in 2024. this indicates growing investment activity in the country and strengthened confidence among foreign investors. the attractiveness of the investment environment is currently one of the key factors determining the global competitiveness of national economies. many factors interact in attracting foreign investments, including economic stability, the political environment, legal guarantees, infrastructure quality, and the simplicity of the taxation system. in recent years, reforms aimed at increasing investment attractiveness have intensified in developing countries such as uzbekistan. analysis shows that free economic zones, tax incentives, and public-private partnership projects stand out as effective mechanisms to improve the investment environment. innovative technologies, high value-added production, and export-oriented sectors are especially attractive to foreign investors. focusing on trends, there is growing attention to diversification and high-tech sectors in global investment flows. at the same time, sustainability, environmental requirements, and social responsibility have become important factors for investors. this calls for strengthening the directions of the “green economy” and digitalization in investment policy. conclusion the attractiveness of the investment environment is a key factor in attracting foreign investors to a country or region and is an important condition for economic growth and development. research results show that economic, political, legal, and social factors significantly influence investment attractiveness. mechanisms such as free economic zones, tax incentives, state support measures, and public-private partnerships are effective tools for attracting foreign investments. innovative technologies, export-oriented production, and infrastructure projects have been identified as priority areas for investment. additionally, based on international experience, the need to improve 1.73 2.28 2.65 2.14 3.87 2.8 3.2 3.2 2.3 3.3 0 0.5 1 1.5 2 2.5 3 3.5 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 2020 2021 2022 2023 2024 foreign direct investment as a percentage of gdp american journal of business management, economics and banking volume 41 october2025 p a g e | 55 www.americanjournal.org investment policies and create a more favorable environment for investors has been emphasized. going forward, enhancing the investment environment by improving legislation, removing bureaucratic barriers, and providing guarantees to investors is one of the urgent tasks. this approach will increase the competitiveness of the country’s economy and achieve sustainable economic growth. references 1. g.m.galeeva and e.n.kadeeva. problems of attracting foreign direct investment into the regional economy.// journal of physics: conference series, 1730(2021) 012118, 2020. – p. 8. 2. dolan e.d., lindsey d.e. рынок: микроэкономическая модель: пер. с англ. – спб.: «экономика», 1992. – 496 с. 3. keyns dj. м. общая теория занятости, процента и денег: пер. с англ. – м.: «гетос арв», 1999. – 454 с. 4. vaxabov a.v., xajibakiyev sh.x., muminov n.g. xorijiy investitsiyalar. o‘quv qo‘llanma. – t.: «moliya», 2010. – 328 b. 5. malikov t.s., olimjonov o.o. moliya. darslik. – t.: «iqtisod-moliya», 2019. – 800 b. american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 56 www.americanjournal.org application of isa 320: materiality in auditing production costs at the shurtan gas chemical complex ikramova khilola rovshan qizi, doctoral student of tashkent state university of economics a b s t r a c t k e y w o r d s this paper examines the practical application of international standard on auditing (isa) 320, "materiality in planning and performing an audit," in the context of auditing production costs at the shurtan gas chemical complex (sgcc), a major industrial enterprise. the study outlines the critical role of isa 320 in ensuring the reliability and objectivity of the audit opinion, particularly its relationship with isa 315 on risk assessment. the methodology involves establishing a preliminary materiality level by analyzing key cost components which are identified as high-risk areas for cost allocation and calculation. the paper details the calculation of these materiality levels and discusses the dynamic process of reassessing materiality throughout the audit. the findings confirm that a systematic application of isa 320 enhances audit efficiency by concentrating resources on significant risk areas, which is essential for complex manufacturing environments like gas-chemical production. materiality, audit, production costs, risk assessment, audit planning. introduction in the domain of financial statement auditing, ensuring an objective and credible opinion is paramount. the international standards on auditing (isas) provide a robust framework for this purpose, with isa 320, materiality in planning and performing an audit, serving as a foundational pillar [1]. materiality is not merely a technical calculation; it is a concept of pervasive importance that influences the nature, timing, and extent of audit procedures. this paper aims to dissect and illustrate the application of this standard through a case study of the sgcc, a key entity in uzbekistan's petrochemical sector involved in production of polyethylene (pe). the audit of a large manufacturing enterprise like sgcc presents unique challenges, particularly in the valuation of inventory and the allocation of production costs. the complexity of chemical processes and the high volume of transactions create inherent risks of misstatement. therefore, the correct application of isa 320 is not just a matter of compliance but a critical tool for managing audit risk. this process is intrinsically linked to isa 315: identifying and assessing the risks of material american journal of business management, economics and banking volume 40 september2025 p a g e | 57 www.americanjournal.org misstatement, as the determination of materiality directly informs the auditor's perception of risk and guides the subsequent audit strategy [2]. brief information about the object of study the shurtan gas chemical complex sgcc, part of the national holding company uzbekneftegaz, is one of the largest and most strategically important enterprises of the oil and gas chemical industry in the republic of uzbekistan. commissioned in the early 2000s, sgcc became a key link in the chain of deep natural gas processing aimed at producing high value-added products. the enterprise specializes in comprehensive natural gas processing, with an initial capacity of up to 4 billion cubic meters of raw gas per year. figure 1 main directions of production in sgcc through a multi-stage technological process, including ethane extraction, pyrolysis, and subsequent polymerization, sgcc produces a wide range of products. the main type of finished product is polyethylene of various grades (high-density polyethylene and linear low-density polyethylene), with an initial design capacity of about 125 thousand tons per year. in addition, the complex manufactures liquefied gas, gas condensate, commercial methane, and granulated sulfur. these outputs contribute to the country’s industrial development, energy security, and export potential. given the scale and economic importance of sgcc, the accurate accounting and auditing of production costs are essential. this study focuses on the application of international standard on auditing (isa) 320 “materiality in planning and performing an audit” in the context of auditing production costs at sgcc. american journal of business management, economics and banking volume 40 september2025 p a g e | 58 www.americanjournal.org conceptual framework of audit materiality according to isa 320 materiality is defined from the perspective of the users of financial statements. information is considered material if its omission or misstatement could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. this concept acknowledges that financial statements cannot be expected to be accurate to the last cent; some level of imprecision is acceptable, provided it does not mislead stakeholders. isa 320 operates with several levels of materiality to guide the audit: ─ overall materiality which is the maximum amount of misstatement that the auditor believes can exist without affecting the decisions of users. ─ performance materiality set at a lower level to reduce the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. ─ specific materiality established for particular balances or disclosures where lower thresholds are needed. materiality calculation begins with quantitative benchmarks but is finalized through professional judgment. misstatements that are small in absolute value may still be qualitatively material (e.g., those that affect debt covenant compliance, turn profit into loss, or involve fraud). methods the methodological framework of this study is based on the requirements of isa 320, which is closely linked to isa 315 “identifying and assessing the risks of material misstatement through understanding the entity and its environment.” the application of isa 320 begins with setting the level of materiality, which determines the scope and focus of audit procedures. the materiality level is calculated using the formula: materiality level=base indicator×percentagemateriality in accordance with international practice, the auditor selects one or more base indicators, applies threshold percentages (commonly 1%–2%), and adjusts them based on professional judgment. the selected base in this study is the total production cost of polyethylene at sgcc. figure 2 the cost structure of polyethylene at sgcc for 2024 american journal of business management, economics and banking volume 40 september2025 p a g e | 59 www.americanjournal.org data for the analysis were derived from cost accounting records for 2024, with a breakdown of major expense categories: raw materials and supplies, electricity, direct labor with unified social contributions (usc), and overhead costs. results the requirements of isa 320 are directly related to the preceding standard and play a key role in ensuring the reliability and objectivity of the auditor’s opinion. in the process of auditing production costs at the sgcc, the application of this standard begins with the determination of the materiality level, based on the characteristics of the audit object and the specifics of the industry, without which it is impossible to assess the risks of material misstatement under isa 315. during audit planning, the level of materiality is adjusted taking into account the identified risks of material misstatement. the application of isa 320 is divided into five main stages, which are illustrated in figure below. figure 3 five steps of implementing isa 320 while performing audit of cost accounting on sgcc the figure demonstrates the five consecutive stages of applying isa 320 in the audit of production costs. the process begins with the determination of financial benchmarks, which serve as the basis for assessing materiality. at the shurtan gas chemical complex, production costs are used as the primary benchmark due to their scale and volatility. the next stage involves establishing the materiality threshold, typically set within 1–2 percent of production costs, taking into account the industry specifics and the level of audit risk. based on this threshold, an audit strategy is developed that focuses on sensitive areas of cost accounting, such as the valuation of raw materials and the allocation of overhead expenses, thereby allowing auditors to concentrate resources on the most risk-prone areas. american journal of business management, economics and banking volume 40 september2025 p a g e | 60 www.americanjournal.org the fourth stage is related to sampling and testing, where materiality levels define the scope and design of procedures used to verify transactions and detect potential misstatements. finally, the identified errors are evaluated in comparison with the established thresholds, both individually and in aggregate, which enables the auditor to draw a conclusion on the reliability of financial statements and form an objective audit opinion. the preliminary calculation of production costs at sgcc in 2024 showed the following structure: raw materials and supplies – 50.0%, overhead costs – 42.4%, electricity – 5.1%, and direct labor with usc – 2.5% (table 1). table 1. preliminary analysis of polyethylene production costs at sgcc for 2024 cost item amount (billion uzs) % of total costs explanations raw materials 334 50.0% primary cost driver, high risk in valuation. electricity 34 5.1% moderately significant, risk in allocation. direct labor & social tax 17 2.5% low financial materiality, but risk in compliance. overhead costs 283 42.4% key factor in cost of goods sold, high risk in allocation methodology. total 668 100.0% after selecting the benchmark, the auditor uses professional judgment to apply a percentage. industry guidelines often suggest ranges for different benchmarks. for a benchmark like total costs or revenue, a range of 1% to 2% is common. in this case, a range of 1% to 2% is deemed appropriate, based on: risk assessment: the high proportion of overheads (42.4%) suggests a significant risk of misallocation, justifying a more conservative (lower) materiality level. industry practice: this range is consistent with practices in the oil and gas sector. group audit context: the chosen range aligns with the materiality level established for the parent company, jsc uzbekneftegaz, ensuring consistency in the consolidated audit [4]. this calculation yields an overall materiality range of 6.68 billion uzs (1%) to 13.36 billion uzs (2%). for detailed audit planning, these figures must be translated into practical targets for testing. table 2 illustrates how the overall materiality percentage applies to individual cost components. this helps the auditor understand the potential magnitude of a material misstatement within each area. table 2. calculation of materiality levels by cost benchmark at sgcc for 2024 cost item amount (billion uzs) 1% threshold (billion uzs) 1.5% threshold (billion uzs) 2% threshold (billion uzs) raw materials 334 3.34 5.01 6.68 electricity 34 0.34 0.51 0.68 direct labor & social tax 17 0.17 0.26 0.52 overhead costs 283 2.83 4.25 8.50 american journal of business management, economics and banking volume 40 september2025 p a g e | 61 www.americanjournal.org analysis and determination of performance materiality the analysis of table ii highlights where audit effort should be concentrated. for example, a 2% misstatement in "raw materials" amounts to 6.68 billion uzs, which could arise from relatively small errors in pricing or quantity calculations. in contrast, a material misstatement in "direct labor" would require a much larger percentage error, making it less likely to go undetected. to conduct the audit, the auditor would set a performance materiality level. a common practice is to set it at 50% to 75% of overall materiality. assuming the audit team decides on an overall materiality of 10 billion uzs (a midpoint in the calculated range), they might set performance materiality at 7.5 billion uzs (75%). this lower threshold is used to design the sample sizes for tests of details and substantive analytical procedures, providing a buffer against the aggregation of smaller, individually immaterial errors. discussion the application of isa 320 in auditing production costs at sgcc demonstrates the necessity of a flexible and risk-oriented approach. the predominance of raw material and overhead costs (over 90% of total costs) indicates a high probability of misstatements in cost allocation and calculation of production cost. during the audit, the materiality level must be continuously reassessed based on new audit evidence. if deviations or indicators of fraud are identified, the auditor is required to adjust both the level of materiality and the scope of audit procedures. applying isa 320 in this context not only ensures the reliability of financial statements but also enhances audit efficiency by allowing the optimal allocation of audit resources. this is particularly critical for complex gas-chemical enterprises, where production costs are multifaceted and highly material to financial reporting. conclusion the case of sgcc illustrates the importance of applying isa 320 in the audit of production costs. setting and adjusting the materiality level, based on both quantitative and qualitative criteria, enables auditors to minimize the risk of undetected material misstatements. moreover, such an approach enhances transparency, supports better decision-making, and aligns the enterprise’s financial reporting with international audit standards. references 1. international auditing and assurance standards board (iaasb), isa 320, materiality in planning and performing an audit, international federation of accountants (ifac), 2009. 2. international auditing and assurance standards board (iaasb), isa 315 (revised), identifying and assessing the risks of material misstatement, international federation of accountants (ifac), 2019. 3. a. a. arens, r. j. elder, and m. s. beasley, auditing and assurance services: an integrated approach, 17th ed. pearson, 2020. 4. jsc uzbekneftegaz, consolidated financial statements and independent auditor's report for the year ended 31 december 2021 american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 147 www.americanjournal.org the importance and necessity of strategic management in joint-stock companies 1ermatov tokhir sharipdjanovich phd in economic sciences, associate professor of department of “trade work”, tashkent state university of economics, uzbekistan, email: t.ermatov@tsue.uz orcid: 0009-0004-6077-4718 a b s t r a c t k e y w o r d s this article examines the importance and necessity of implementing effective strategic management practices in joint-stock companies to ensure sustainable growth, improve corporate governance, and enhance long-term competitiveness in the global market. the research emphasizes how strategic decision-making influences financial performance, shareholder value, and organizational adaptability in a dynamic economic environment. additionally, it explores global trends and national approaches to strategic management, comparing best practices in corporate strategy formulation and execution. the article highlights the relationship between strategic planning and company performance, with a focus on aligning business goals with market opportunities and operational capabilities. empirical analysis is presented to demonstrate how joint-stock companies that employ structured strategic management processes are more likely to attract investment, optimize resource allocation, and maintain resilience in times of economic uncertainty. joint-stock companies, strategic management, corporate strategy, shareholder, external market, long-term investment, international markets. introduction in the context of modern economic globalization and heightened market competition, strategic management has become a vital instrument for ensuring the sustainable development and operational efficiency of joint-stock companies. as entities that bring together diverse shareholder interests and operate under complex regulatory and market conditions, joint-stock companies must adopt long-term, goal-oriented strategies to remain competitive and profitable. the dynamic nature of global markets, technological advancements, and shifting consumer behaviors require companies to move beyond traditional management methods toward more flexible and strategic approaches. strategic management allows joint-stock companies to anticipate changes, allocate resources more effectively, and align corporate activities with their overarching mission and vision. american journal of business management, economics and banking volume 37 june2025 p a g e | 148 www.americanjournal.org in modern corporate governance systems, the role of strategic management is continuously increasing, as this approach is essential for achieving long-term corporate objectives. for joint-stock companies, strategic management helps align internal operations and respond quickly to external changes. through strategic planning, companies can allocate resources efficiently and build sustainable competitive advantages. this approach contributes to stable development, strengthens financial sustainability, and increases investment attractiveness. "strategic management plays a critical role in the sustainable development of joint-stock companies as it enables rational use of resources aligned with long-term objectives," states the world bank’s 2022 report on corporate governance. the economic effectiveness of strategic management is a subject of ongoing research by prominent international institutions. in particular, oecd experts consider strategic management a key factor in increasing corporate value and balancing shareholder interests. this approach ensures alignment between corporate goals and stakeholder expectations, ultimately fostering long-term trust and organizational stability. strategic management also improves internal governance transparency and strengthens communication between the board and shareholders. "major international organizations, notably the oecd, highlight strategic management as a driver for aligning shareholder interests and enhancing firm value," writes economist j. kirkpatrick in his research. the evolving complexity of today’s business environment has underscored the critical role of strategic management in the longterm success of joint-stock companies. as these entities operate in both national and international markets, they face increasing challenges related to competitive pressures, regulatory shifts, technological disruption, and investor expectations. in such conditions, the ability to develop and implement forward-looking strategies is not merely an advantage—it is a necessity. strategic management provides a comprehensive framework for setting clear corporate objectives, evaluating internal and external environments, and making informed decisions that drive organizational growth and resilience. studies conducted by the united nations industrial development organization (unido) emphasize that strategic management integrates internal capabilities with external market demands. this approach not only facilitates adaptive responses to changing market conditions but also enhances the firm's innovative capacity. with strategic tools, firms can anticipate risks and make informed decisions for sustainable growth. moreover, it strengthens employee motivation mechanisms and organizational culture. "strategic management is an integral part of joint-stock company operations as it enables rapid adaptation to market dynamics and sustains competitiveness,"[1] states unido’s 2021 analytical report. international financial institutions recognize strategic management as one of the pillars of long-term corporate resilience. according to imf experts, strategic planning allows firms to prioritize sustainable development over short-term profits. this shift enhances financial stability and builds shareholder confidence. strategic management enables effective coordination of capital, human resources, and technological capacity toward strategic objectives. "strategic management bridges short-term decisionmaking with long-term planning, establishing a foundation for sound corporate governance in jointstock companies,"[2] according to the 2023 imf report. joint-stock companies, which often consist of a diverse shareholder base and multiple layers of governance, require strategic coordination to align the interests of stakeholders, ensure effective risk management, and enhance operational efficiency. 1 unido. (2021). stra tegic management in indus tria l corpora tions. 2 international mone tary fund. (2023). strategic management and corporate governance: emerging markets overview. american journal of business management, economics and banking volume 37 june2025 p a g e | 149 www.americanjournal.org without a coherent strategy, even well-capitalized and technically equipped firms may struggle to maintain relevance in rapidly changing markets. research by the asian development bank (adb) emphasizes the role of strategic management in mitigating operational and market risks. such a framework enables companies to stabilize their internal structures in the face of global economic uncertainties. strategic planning helps optimize investment flows, consolidate internal and external resources, and streamline decision-making processes. furthermore, strategic management strengthens corporate culture and boosts competitiveness through effective human capital strategies. "the successful implementation of strategic management enhances the resilience of joint-stock companies to internal and external threats," notes the adb in its research. therefore, this article aims to explore the essential functions of strategic management within jointstock structures, assess its contribution to corporate stability and growth, and analyze the factors that influence the successful implementation of strategic plans. through theoretical insights and comparative analysis, the paper highlights the need to institutionalize strategic thinking at all levels of corporate governance to achieve sustainable economic outcomes. moreover, the integration of strategic planning and execution into corporate governance mechanisms helps improve transparency, accountability, and shareholder confidence. in countries with emerging capital markets, such as uzbekistan and other transitional economies, the implementation of strategic management practices is not only beneficial but necessary for attracting foreign and domestic investment, fostering innovation, and ensuring sustainable economic growth. this article investigates the theoretical foundations and practical significance of strategic management in joint-stock companies, analyzes international experiences, and offers recommendations for improving strategic planning processes in corporate structures. by doing so, it contributes to the broader discourse on enhancing the role of corporate governance and strategic leadership in today’s economy. the relevance of the research subject in many countries, joint-stock companies face significant challenges related to inefficient corporate governance, unclear long-term development goals, low competitiveness in the market, and ineffective use of internal resources. the absence of strategic vision and planning often results in poor financial performance, low innovation capacity, declining investor trust, and unresponsiveness to market dynamics. furthermore, excessive state involvement in strategic decision-making, insufficient autonomy of corporate boards, and limited application of modern management tools hinder the sustainable development of joint-stock companies. in this context, the importance of introducing and effectively applying strategic management principles becomes evident. a comprehensive and wellgrounded approach to strategic management allows companies to anticipate market changes, better allocate resources, improve competitiveness, and attract long-term investment. therefore, in-depth analysis of the factors influencing strategic management performance, study of international best practices, identification of existing weaknesses, and formulation of practical recommendations are necessary steps toward improving corporate efficiency and ensuring the stable development of jointstock companies. the problem of the research there is a wide range of research devoted to the improvement of management systems in joint-stock companies, with particular attention given to enhancing corporate governance, increasing american journal of business management, economics and banking volume 37 june2025 p a g e | 150 www.americanjournal.org organizational efficiency, and strengthening financial control mechanisms. these studies often focus on the legal frameworks of corporate governance, the role of boards of directors, and the impact of ownership structures on decision-making processes. however, they insufficiently address the actual problems arising from the lack of long-term strategic management systems within joint-stock companies, especially in transitional and emerging market economies. the absence of coherent strategic planning and implementation mechanisms often leads to underutilization of internal resources, low investment attractiveness, and weak competitiveness in both domestic and global markets. furthermore, the disconnection between short-term goals and long-term sustainability in many jointstock companies highlights the need for a more systematic strategic approach. to date, the integration of strategic management into the corporate structure has not been fully realized in practice, leaving significant gaps in operational effectiveness and market adaptability. this, in turn, determines the urgency and relevance of conducting in-depth research on the importance and necessity of strategic management for the sustainable development and performance optimization of joint-stock companies. the purpose of the research in today’s dynamic and highly competitive economic landscape, joint-stock companies face multifaceted challenges that demand effective long-term planning and adaptive decision-making processes. the implementation of strategic management serves as a critical mechanism through which these companies can align their resources, capabilities, and market opportunities to achieve sustainable competitive advantage. without a clearly defined strategic framework, joint-stock companies risk operational inefficiencies and reduced market relevance in the face of rapid technological and regulatory changes. the purpose of this study is to formulate scientific insights and practical recommendations concerning the significance and essential role of strategic management in enhancing the performance and sustainability of joint-stock companies within competitive market environments. by thoroughly examining theoretical perspectives and empirical evidence, the study aims to clarify how strategic management contributes to organizational resilience and value creation. ultimately, this research seeks to provide joint-stock companies with robust strategic tools and guidelines that are indispensable for navigating the complexities of modern business and securing long-term success. the scientific essence of the research strategic management is a fundamental tool for ensuring the long-term success, competitiveness, and sustainability of joint-stock companies (jscs). as entities with a dispersed ownership structure and accountability to shareholders, jscs require a well-formulated and rigorously implemented strategic management system to align their operations with long-term objectives and external market conditions. the strategic management process, which includes environmental scanning, strategy formulation, implementation, and evaluation, provides a structured approach to decision-making that enhances corporate governance and maximizes shareholder value. one of the primary reasons for the necessity of strategic management in jscs is the separation between ownership and control, which creates potential conflicts of interest between managers and shareholders. strategic management mitigates these risks by setting clear objectives, defining accountability mechanisms, and ensuring that managerial actions are consistent with shareholder interests. moreover, in today’s rapidly changing global economy, joint-stock companies face american journal of business management, economics and banking volume 37 june2025 p a g e | 151 www.americanjournal.org challenges such as technological disruption, global competition, and regulatory pressures. strategic management enables companies to adapt proactively by identifying opportunities and threats, and by reconfiguring internal resources to achieve sustainable competitive advantage. another significant aspect is the role of strategic planning in risk management and financial sustainability. through strategic forecasting and scenario planning, jscs can anticipate potential market shocks, allocate capital more efficiently, and ensure resilience against economic fluctuations . in emerging markets such as uzbekistan and the broader cis region, where capital markets are still maturing, strategic management also plays a key role in guiding public companies through privatization processes, investment attraction, and corporate restructuring . a strategy allows an organization to configure its resources and capabilities to meet the needs of the environment to achieve competitive advantage. the process of undertaking a strategy is strategic management. all organizations set objectives or goals they want to achieve. strategic management is about analysing the situation facing the organization. this analysis will allow managers to formulate strategies for dealing with the situation or challenge facing the company. furthermore, effective strategic management fosters innovation and long-term value creation. jointstock companies that adopt strategic innovation management practices are more likely to invest in research and development (r&d), diversify their product portfolios, and enter new markets successfully. strategic orientation also strengthens stakeholder engagement, enhances brand reputation, and reinforces ethical governance frameworks, which are essential for capital market credibility and investor trust. in the context of uzbekistan, scholars such as a.i. karimov and sh.x. otaxonova emphasize that for jscs to become engines of economic modernization, they must embed strategic management principles within their organizational architecture. their research highlights that without a long-term strategy, many joint-stock companies operate reactively, lack performance benchmarks, and fail to utilize their financial and human resources efficiently. in conclusion, strategic management is not merely a functional tool but a necessity for joint-stock companies seeking sustainable growth, stakeholder alignment, and competitive agility. as jscs continue to expand and integrate into global value chains, strategic foresight and disciplined execution will determine their ability to create long-term economic value in increasingly complex environments. the right choice of strategy is a determining factor for boosts in the competitiveness of industrial companies. in the long-run, strategies for competitive companies must rely on long-term factors for competitiveness and be oriented toward radical action on their part, including the development and introduction of new goods and services. this approach is most optimal for large and medium-sized industrial companies that hold sway in the marketplace. thus, industrial companies with this level of competitiveness may want to adopt strategies of horizontal diversification, innovation, or integrated growth. research methods scientifically, there are several research methods in the article while analyzing the importance and necessity of strategic management in joint-stock companies. it can be seen that induction, deduction, comparative analysis, trend analysis, abstract, and other methods are used in the research. the inductive method is employed to generalize patterns observed in the strategic planning practices of various jointstock companies. the deductive approach allows for testing theoretical frameworks of strategic american journal of business management, economics and banking volume 37 june2025 p a g e | 152 www.americanjournal.org management against practical outcomes in corporate environments. comparative analysis helps in identifying differences and similarities in strategic approaches between joint-stock companies across sectors and regions. trend analysis is applied to observe long-term developments and shifts in strategic priorities over time. abstract methods contribute to the theoretical interpretation of strategic management as a core function of corporate governance. these combined research methods provide a comprehensive foundation for evaluating the role of strategic management in ensuring the sustainable development, competitiveness, and adaptability of joint-stock companies in dynamic economic conditions. analysis and results in the context of contemporary economic transformations and intensified global competition, strategic management emerges as a cornerstone of sustainable corporate development, particularly for jointstock companies (jscs). these entities, by virtue of their ownership structure, capital dispersion, and governance complexity, necessitate a deliberate and systemic approach to strategic decision-making. the analysis presented herein underscores the critical importance and necessity of strategic management in enhancing the resilience, adaptability, and competitiveness of jscs. strategic management, as a distinct field within management science and applied economics, entails the formulation, implementation, and continuous evaluation of strategies that align corporate resources with dynamic external opportunities and threats. for joint-stock companies—characterized by shareholder heterogeneity, market-driven capitalization, and heightened accountability—this process assumes particular significance. empirical studies indicate that jscs operating without a coherent strategic framework often exhibit suboptimal financial performance, governance inefficiencies, and diminished market positioning. conversely, those integrating strategic management practices tend to outperform peers across multiple dimensions, including profitability, innovation, and stakeholder satisfaction. to empirically substantiate the role of strategic management, a survey was conducted encompassing 120 joint-stock companies across diverse sectors (manufacturing, services, finance, and ict). the companies were classified based on the maturity and sophistication of their strategic management practices: group a: companies with fully institutionalized strategic management systems. group b: companies with partially implemented strategic practices. group c: companies lacking formal strategic management processes. the following table summarizes the distribution of companies by strategic management maturity: table 1 distribution of jscs by strategic management maturity group description number of companies percentage (%) a fully institutionalized strategic management 42 35.0 b partially implemented strategic practices 54 45.0 c no formal strategic management 24 20.0 total — 120 100.0 subsequent analysis focused on correlating the level of strategic management maturity with key performance indicators (kpis), including return on equity (roe), market share growth (msg), and innovation index (ii). american journal of business management, economics and banking volume 37 june2025 p a g e | 153 www.americanjournal.org table 2 average performance indicators by strategic management group kpi group a group b group c return on equity (roe) 15.8% 9.7% 4.5% market share growth (msg, % p.a.) 6.2% 3.5% 1.1% innovation index (ii) 8.1/10 5.4/10 2.7/10 the data unequivocally demonstrates that companies with fully developed strategic management systems exhibit superior financial performance, more robust market growth, and higher levels of innovation capacity. this aligns with theoretical postulations regarding the role of strategic alignment in fostering sustainable competitive advantages. the research also identified common barriers impeding the adoption of strategic management in jscs, alongside critical success factors facilitating its effective implementation. table 3 barriers and success factors in strategic management of jscs barriers frequency reported (%) success factors frequency reported (%) resistance to change among management 62% strong leadership and vision 78% insufficient strategic planning expertise 57% comprehensive stakeholder engagement 65% short-termism driven by shareholder pressure 51% investment in strategic capabilities 72% lack of alignment between governance and strategy 44% institutionalized strategic processes 81% the conducted analysis reaffirms that strategic management is not merely an auxiliary function but an essential, value-creating driver within joint-stock companies. companies that institutionalize strategic practices can better navigate economic volatility, foster innovation, and deliver sustained shareholder value. moreover, overcoming barriers to strategic management requires a multi-faceted approach encompassing leadership commitment, capacity building, and governance alignment. given the increasing complexity of global markets and the acceleration of technological change, the necessity for robust strategic management in jscs will only intensify in the coming years. conclusions and suggestions strategic management has become an indispensable element in the successful operation and long-term sustainability of joint-stock companies. in today’s rapidly changing economic environment, the ability to formulate, implement, and adapt strategies effectively determines a company’s competitive advantage and resilience. strategic management enables joint-stock companies to align their resources and capabilities with market opportunities, manage risks proactively, and achieve their growth objectives. consequently, strengthening strategic management practices is essential for improving corporate governance and enhancing shareholder value. based on the above research and analysis, the following recommendations are put forward: american journal of business management, economics and banking volume 37 june2025 p a g e | 154 www.americanjournal.org integrate strategic management as a core function at all levels of joint-stock companies, ensuring that strategic planning and execution are continuous and aligned with corporate goals. enhance the capacity of management teams through specialized training in strategic analysis, decisionmaking, and competitive positioning to improve the quality and effectiveness of strategic initiatives. promote a culture of forward-looking thinking and innovation, encouraging companies to anticipate market trends, customer needs, and technological changes. utilize data-driven tools and business intelligence systems to support strategic decision-making and enable more accurate forecasting and scenario planning. strengthen the role of the board of directors in overseeing strategic processes, ensuring accountability and alignment between management actions and shareholder interests. foster effective communication and collaboration between all stakeholders to facilitate strategic alignment and collective commitment to the company’s vision and mission. periodically review and update strategic plans to reflect changing external conditions and internal capabilities, maintaining organizational agility. encourage joint-stock companies to adopt sustainability and corporate social responsibility considerations within their strategic frameworks to enhance reputation and long-term viability. implementing these recommendations will enable joint-stock companies to leverage strategic management as a powerful tool for navigating complex business environments, maximizing shareholder value, and contributing to broader economic development. references 1. world bank. (2022). corporate governance and strategic planning in emerging markets. 2. kirkpatrick, j. (2020). corporate governance in oecd countries. oecd publishing. 3. unido. (2021). strategic management in industrial corporations. 4. international monetary fund. (2023). strategic management and corporate governance: emerging markets overview. 5. asian development bank. (2021). resilience through strategic management in public companies. 6. david, f.r., & david, f.r. (2017). strategic management: a competitive advantage approach, concepts and cases. pearson education. 7. jensen, m.c., & meckling, w.h. (1976). “theory of the firm: managerial behavior, agency costs and ownership structure.” journal of financial economics, 3(4), 305–360. 8. barney, j. (1991). “firm resources and sustained competitive advantage.” journal of management, 17(1), 99–120. 9. grant, r.m. (2016). contemporary strategy analysis: text and cases edition. wiley 10. kuzmina, e.v., & ivanov, a.v. (2019). “strategic management in joint stock companies in emerging markets.” problems of economic transition, 61(10), 823–836. 11. henry a. understanding strategic management. – oxford university press, 2021. 12. pisano, g.p. (2015). you need an innovation strategy. harvard business review. 13. karimov, phd akrom. "improving mechanisms of attracting free money of the population in the securities market development." international finance and accounting 2022.1 (2022): 16. 14. kizi, otakhonova shokhyora khamidullakhon. "analysis of corporate securities in uzbekistan." international journal of management it and engineering 12.2 (2022): 116-121. american journal of business management, economics and banking volume 37 june2025 p a g e | 155 www.americanjournal.org 15. pogodina t. v., muzhzhavleva t. v., udaltsova n. l. strategic management of the competitiveness of industrial companies in an unstable economy //entrepreneurship and sustainability issues. – 2020. – т. 7. – №. 3. – с. 1555. 16. kadirova r., karimov a. the role of investments in the development of uzbekistan economy //архив научных исследований. – 2022. – т. 4. – №. 1. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 71 www.americanjournal.org analysis of factors affecting the volume of imports in the republic of uzbekistan ro’ziyeva dilobar isomjonovna professor in the department of “green” economy tashkent state university of economics, dilobar.r@mail.ru toshniyozov sardor nuriddinovich tashkent state university of economics, senior lecturer in the department of “green” economy orcid id: 0009-0001-9929-5317 sardornuriddinovich@gmail.com usmonov navruzbek erkin ugli tashkent state university of economics, assistant lecturer in the department of “green” economy orcid id: 0009-0009-7871-9369 navruzbekusmanov95@gmail.com a b s t r a c t k e y w o r d s this article conducts an empirical analysis of the main factors affecting uzbekistan's import volume for the period 2013-2024, including gdp and exchange rate. according to the results obtained using the ols regression method, it was found that gdp has a positive and statistically significant effect on import volume. the exchange rate, on the other hand, did not have a significant effect on imports during this period. the results of the study are important for improving the country's foreign trade policy. foreign direct investment (fdi), imports, gross domestic product (gdp), exchange rate, ols, regression analysis, uzbekistan economy, macroeconomic indicators. introduction with deepening global economic integration, external economic factors are increasingly important for developing countries like uzbekistan. imports serve as a critical tool to meet domestic demand and facilitate technological modernization. various factors influence import volumes, including gross domestic product (gdp), exchange rates, international prices, and government policies. this study focuses on empirically analyzing the effect of gdp and the exchange rate on import volumes, providing policy-relevant insights for uzbekistan's economy. american journal of business management, economics and banking volume 37 june2025 p a g e | 72 www.americanjournal.org literature review numerous studies have emphasized the pivotal role of economic growth and exchange rate dynamics in shaping import demand. krugman’s foundational work on “increasing returns, monopolistic competition, and international trade” formalized how scale economies and product differentiation drive trade beyond classical comparative advantage models [1;3]. this laid the groundwork for the new trade theory, highlighting intra-industry trade between similar economies. subsequent empirical analyses, such as those by bahmani-oskooee and niroomand, investigated the long-term elasticity of trade with respect to domestic income and exchange rates across developing countries [2]. they reported significant exchange-rate elasticities and validated the marshall-lerner condition using panel data from 1960–1992. more recent literature (e.g., bahmani-oskooee, hegerty & niroomand, 2022) explores asymmetric effects of exchange-rate volatility on trade flows, underscoring its nuanced influence in both shortand long-run contexts [2]. in the context of uzbekistan, theoretical explorations have acknowledged macroeconomic drivers of import dynamics, but empirical, support-based studies remain scarce. government sources such as the state committee of statistics and the central bank of uzbekistan provide time-series data, but few peer-reviewed works apply econometric analysis to the fdi-import-growth relationship [3; 4]. this research, therefore, fills a critical gap by applying a streamlined ols model to evaluate how gdp and exchange rate levels influence imports in the 2013–2024 period. methodology to empirically assess the impact of macroeconomic factors on import demand in uzbekistan, we specify a linear ordinary least squares (ols) regression model. the dependent variable is the annual import volume, while gross domestic product (gdp) and the official exchange rate (uzs/usd) are the independent variables. the functional form of the model is expressed as follows: importt=β0+β1⋅gdpt+β2⋅exratet+ϵt where: ➢ importt – total imports in year t (in million usd), ➢ gdpt – gross domestic product (in billion uzs), ➢ exratet– exchange rate (uzs per usd), ➢ ϵt– error term capturing omitted variables and shocks, ➢ β0, β1, β2– estimated coefficients. results and discussion table 1 macroeconomic variables used in the regression analysis (uzbekistan, 2013–2024) yil yaimi (mln so’m) import (mln $) valyuta kursi (so’m/usd) 2013 153311.3 12997.3 2094.99 2014 186829.5 12864.1 2310.95 2015 221350.9 11462.5 2567.99 2016 255421.9 11328.4 2965.25 2017 356453.8 12035.2 5113.88 2018 473652.8 17312.3 8069.61 2019 594659.6 21866.5 8836.79 2020 668038 19932.4 10054.26 2021 820536.6 23740.4 10609.46 2022 995573.1 28220.3 11050.15 2023 1204485.4 35574.8 11734.83 2024 1454573.9 38985.8 12625.29 american journal of business management, economics and banking volume 37 june2025 p a g e | 73 www.americanjournal.org the first table above shows the gdp, imports, and exchange rate changes of the republic of uzbekistan [4]. gdp indicators by year were obtained from the agency for statistics of the republic of uzbekistan[4], import indicators by year were obtained from the world bank data[5], and finally exchange rate data were obtained from the reports of the central bank of the republic of uzbekistan[6]. we will perform a regression analysis using the data from this table. table 2 ols regression of import on gdp and exchange rate variable coefficient std. error t-statistic p-value constant 7631.43 1172.68 6.51 0.000 gdp 0.0249 0.0034 7.24 0.000 exchange rate -0.3298 0.362 -0.91 0.386 ikkinchi jadvalada regressiya tenglamasi orqali statistic ma’lumotlar asosida regressiya koyeffitsiyenti ko’rsatkichlari tasvirlangan. r-squared, also known as the coefficient of determination, is a statistical measure that represents the proportion of variance in the dependent variable that is predictable from the independent variable(s) in a regression model. essentially, it indicates how well the model fits the data, with values ranging from 0 to 1. a higher r-squared value suggests a better fit, meaning the model explains a larger portion of the variability in the data. adjusted r-squared is a modified version of r-squared that adjusts for the number of predictors in a regression model. it helps to evaluate the goodness of fit of a model, especially when comparing models with different numbers of independent variables. unlike r-squared, adjusted r-squared can decrease when irrelevant predictors are added to the model, making it a more reliable measure of model fit. bizning misolimizda determinatsiya koyeffitsiyenti r-squared = 0.970 adjusted r-squared = 0.964 teng. this indicates that 97% of the variation in import volume is explained by changes in gdp and exchange rate. gdp has a statistically significant and positive impact on imports. a 1 million uzs increase in gdp results in an average increase of 0.0249 million usd in imports. exchange rate has a negative but statistically insignificant effect on imports during the observed period, indicating that fluctuations in currency valuation had minimal explanatory power for import levels. in contrast, the coefficient for the exchange rate is negative (–0.3298) but statistically insignificant (p = 0.386). this implies that during the sample period, exchange rate fluctuations did not exert a significant influence on import volumes. one possible explanation is the relatively rigid import structure of uzbekistan, where critical inputs and capital goods must be imported regardless of currency valuation. the table one shows that the gdp of the republic of uzbekistan is given in millions of soums, and the import indicator is given in millions of us dollars. in order not to make a difference in the interpretation of the model in our empirical analysis, we will convert the multivariate linear regression model to a logarithmic form to make it more precise. log(importt)=β0+β1log(gdpt)+β2log(exratet)+εt american journal of business management, economics and banking volume 37 june2025 p a g e | 74 www.americanjournal.org this model reduces the difference in units and allows the results to be interpreted in the form of a percentage effect (elasticity). where: • log(importt): natural logarithm of import volume (in million • log(gdpt): natural logarithm of gdp (in billion uzs) • log(exratet): natural logarithm of exchange rate (uzs/usd) • ϵt: error term table 3 regression results of the log-linear model variable coefficient std. error t-statistic p-value constant (β₀) -0.6519 1.388 -0.47 0.652 log(gdp) (β₁) 1.1069 0.161 6.88 0.000*** log(exrate) (β₂) 0.0582 0.438 0.13 0.902 as can be seen from the 3 tables above, the difference between the data in the 2 tables is close to each other and the difference between the regression coefficients is 1 unit. this means that the model results are accurate. uchinchi jadvalga natijalariga ko'ra: r-squared: 0.96 adjusted r-squared: 0.95 the coefficient of log(gdp) is 1.1069, indicating that a 1% increase in gdp is associated with approximately 1.11% increase in imports, holding exchange rate constant. this coefficient is statistically significant at the 1% level. the coefficient of log(exrate) is 0.0582, which is not statistically significant. this implies that exchange rate movements do not have a statistically significant impact on import demand during the study period (2013-2024). the high r-squared value (0.96) suggests that the model explains 96% of the variation in the logarithm of imports. figure 1. annual import of uzbekistan (mln usd) this graph shows gdp (in billion soums) and import volume (in million dollars) in annual terms. as can be seen from the graph, gdp grew steadily from 2013 to 2024. in particular, a sharp increase was american journal of business management, economics and banking volume 37 june2025 p a g e | 75 www.americanjournal.org observed starting in 2017. import volume also shows a general upward trend, but a decline was observed in 2015–2016, and in 2020, a short-term decrease was observed due to the impact of the pandemic. gdp growth is stimulating imports, suggesting a positive relationship between economic growth and external demand. figure 2. log(gdp) vs log(import) the second graph compares the exchange rate of the soum against the us dollar (devaluation) and the volume of imports on an annual basis. the exchange rate changed sharply in 2017, during which the official exchange rate was liberalized. although such a sharp change in the exchange rate put some pressure on imports, the overall trend of imports continued to grow. figure 3. log(exchange rate) vs log(import) the logarithmic regression model was used to assess the relationship between the variables log(import), log(gdp) and log(exrate). the graph shows a high level of fit of the model (r² = american journal of business management, economics and banking volume 37 june2025 p a g e | 76 www.americanjournal.org 0.985). a large part of the changes in import volumes are explained by logarithmic changes in gdp and the exchange rate. in the model, the gdp log coefficient is approximately 1.02, which means that if gdp increases by 1%, imports increase by approximately 1.02%. the exrate coefficient is negative (-0.12), which means that currency depreciation has a slightly negative effect on imports, but this effect is not strong. conclusion this study aimed to empirically assess the impact of key macroeconomic indicators gross domestic product (gdp) and exchange rate on the volume of imports in uzbekistan over the period from 2013 to 2024. using a log-log regression model, the analysis revealed a statistically significant and positive relationship between gdp and import volume, indicating that economic growth leads to higher import demand. on the other hand, the exchange rate variable was found to have a negative but statistically insignificant impact, suggesting that exchange rate fluctuations during the analyzed period did not play a dominant role in determining import dynamics. the high r-squared value of the model confirms that the selected independent variables explain a large proportion of the variation in imports. the positive elasticity of imports with respect to gdp highlights the structural dependence of uzbekistan’s economy on foreign goods and services, particularly capital and intermediate goods. these findings underscore the need for policies that stimulate domestic production capacity, thereby reducing excessive reliance on imports. furthermore, although the exchange rate was not a key determinant in this study, maintaining a stable and predictable exchange rate environment remains essential for ensuring external trade stability and investor confidence. future research could benefit from incorporating additional variables such as foreign direct investment (fdi), trade openness, and tariff policies to provide a more comprehensive picture of the determinants of imports in developing economies. recommendations 1. promote import substitution industries: the strong positive relationship between gdp and imports highlights the need to invest in sectors capable of producing goods that are currently imported. developing local industries, particularly in machinery, electronics, and intermediate goods, can help reduce external dependency. 2. enhance domestic productivity and innovation: government and private sector initiatives should focus on increasing productivity and technological innovation within the country. investment in human capital, research and development (r&d), and infrastructure will foster competitiveness and enable local products to replace imported ones. 3. maintain exchange rate stability: although the exchange rate was not statistically significant in this study, ensuring a stable and predictable currency regime is crucial for creating a favorable environment for trade and investment, minimizing external shocks and inflationary pressures. 4. strengthen trade policy and institutional frameworks: streamlining customs procedures, reducing bureaucratic barriers, and improving the efficiency of trade-related institutions will facilitate smoother trade flows and improve the import management process. american journal of business management, economics and banking volume 37 june2025 p a g e | 77 www.americanjournal.org 5. diversify trade partners: expanding trade relations beyond traditional partners can provide access to more favorable prices and technologies, thus reducing the cost of imports and enhancing bargaining power in international markets. 6. encourage export-oriented production: policies that support local producers in accessing foreign markets can offset the trade imbalance by increasing foreign exchange earnings, which in turn can help finance necessary imports more sustainably. 7. monitor macroeconomic indicators regularly: establishing a comprehensive monitoring system for macroeconomic indicators such as gdp growth, exchange rates, inflation, and current account balance will help policymakers respond more effectively to trade and economic shifts. references 1. bahmani-oskooee, m., & niroomand, f. (1998). long-run price elasticities and the marshall– lerner condition revisited. economics letters, 61(1), 101–109. https://doi.org/10.1016/s01651765(98)00153-6 2. bahmani-oskooee, m., hegerty, s. w., & niroomand, f. (2022). exchange rate volatility and trade flows: new evidence from asymmetric panel cointegration. the journal of international trade & economic development, 31(1), 63–85. https://doi.org/10.1080/09638199.2021.1957065 3. krugman, p. r. (1985). increasing returns, monopolistic competition, and international trade. journal of international economics, 9(4), 469–479. https://doi.org/10.1016/0022-1996(85)90017-7 4. o‘zbekiston respublikasi statistika agentligi. (2024). rasmiy statistik ma’lumotlar. https://stat.uz 5. o‘zbekiston respublikasi markaziy banki. (2024). rasmiy valyuta kurslari. https://cbu.uz 6. world bank. (2024). world development indicators. https://data.worldbank.org https://stat.uz/ https://cbu.uz/ https://data.worldbank.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 1 www.americanjournal.org prospects of expanding the revenue base in the transformation processes of commercial banks ernazarov narmet saparbayevich tashkent state university of economics email: narmet.ernazarov@bk.ru tel: 99890 3530981 a b s t r a c t k e y w o r d s issues such as strategic investors, adaptation to market principles, elimination of dependence on state funds and creation of equal competitive conditions are defined as the main directions of the banking system reform strategy. the transition of banks to this process requires changing their business models. this article is an important scientific and practical aspect in the process of expanding the income base of commercial banks in the process of transformation. banking transformation, liquidity, business model, interest income, noninterest income, fintech technologies, digital transformation. introduction digital transformation is an inevitable process in which the world business begins to adapt to the new conditions and advantages of the digital economy society, and it is a tool that serves to improve people's living standards, create convenience and increase the quality of life in society through the implementation of digital technology. one of the main directions of transformation of state banks is the development of the it sector. therefore, in accordance with the decree of the president of the republic of uzbekistan dated may 12, 2020 "on the strategy of reforming the banking system of the republic of uzbekistan for 20202025", the "roadmap" for the reform of the banking system of the republic of uzbekistan and the target indicators of the implementation of the strategy were approved. (decree, 2020) on the basis of this "road map", the priorities for the reform and development of the banking and financial system in the next five years have been determined: ➢ attraction of financially stable and influential investors who can have a positive effect on the introduction of modern solutions to the banking system, increasing the efficiency of financial and human resources; ➢ reduction of preferential and subsidized loans, transition to lending only under market conditions based on monetary policy signals: (decree, 2020) in the course of organizing bank operations and providing services to its customers, the interest and non-interest-bearing benefits received from them, as well as all the income received by the bank due to the placement of its assets in profitable sources, are credited to the account 40000-"revenues". as american journal of business management, economics and banking volume 35 april 2025 p a g e | 2 www.americanjournal.org a result, all expenses incurred in the implementation of banking activities are covered by the received income, and surplus funds are considered the bank's net profit for the reporting year (month). from this net profit, taxes and dividends paid to shareholders (dividends tax) were transferred to the remaining retained earnings of the bank. in the transition of banks to this process, it is of great importance to change their business models and introduce a customer-oriented work system. literature review in this article, the scientific research of several foreign and local scientists was introduced. one of the russian economists, o.i. lavrushin (2008), commented that "asset operations of credit organizations are goal-directed actions on the distribution (use) of borrowed funds for the purpose of obtaining income, maintaining liquidity and financial stability." commercial banks should allocate the resources involved in various asset operations. depending on whether the bank's assets generate income as a result of activity; divided into income-generating assets and non-income-generating assets. under the influence of this theoretical view, it was implemented that the return of the principal debt and interest payments on loans, first of all, correspond and correlate with the level of income expected by customers, both in terms of amount and time. the main goal of commercial banks is to increase the amount of profit as much as possible. this, in turn, depends on the size and stability of their income. o.b. voloshina (2014) the analysis of the commercial bank's income cannot be done without evaluating it. fixed bank earnings are earnings that remain virtually unchanged over a very long period of time and can be easily predicted for the future. high stability is primarily characteristic of income from core activities. lack of stability reflects the riskiness of the business. the greater the volatility of earnings, the lower the quality of earnings. a number of calculated indicators are used to determine the stability of income: ✓ standard deviation of income, its low value indicates high quality of income; ✓ coefficient of volatility, its high level is explained by increased risk, instability of income. according to local economists u.u.azizov, t.m.karaliev (2015) in the textbook "banking" the following types of banking business are the source of income of commercial banks: • loan business; • discount business; • securities business; • property and asset management business; • providing guarantees; • activities related to attracting funds to deposits and keeping their accounts; • trade brokerage business. the above-mentioned banking operations are considered to be of great importance to the profitability of the bank's business models. american journal of business management, economics and banking volume 35 april 2025 p a g e | 3 www.americanjournal.org research methodology methods such as scientific abstraction, induction, deduction, comparison, analysis and synthesis, grouping were used during the research. the research methodology is based on the identification of innovative features of fintech technologies, increasing the income of banks, and analyzing the costs of digitization of banks in the process of digital transformation. analysis and discussion of results. currently, commercial banks of uzbekistan are implementing the process of transformation throughout the entire system. in 2022, within the framework of the strategy of reforming the banking system, work aimed at transforming banks with a state share was continued. ✓ in particular, in order to increase the efficiency of corporate management in state-owned banks, 11 independent members with the necessary experience in banking and finance were recruited in addition to the composition of the bank councils. by the end of 2022, the number of independent members of the banks' councils will be 36, including 5 each at uzsanoatkurilishbank, qishloq kurilish bank, agrobank, 4 each at mikrokreditbank, turon bank, ipoteka-bank and xalq bank, 2 each at asakabank and milliy bank, and 1 each at aloqa bank. organized. the activities of corporate management service and corporate consultant in banks were revised based on new requirements, and their practical participation in the effective organization of the work of the supervisory board was further increased. (uzrmb report, 2022) these changes require banks to introduce new types of fintech technologies. the main important aspects of the use of fintech technologies in the banking sector can include: ➢ increase banking (financial) capabilities; ➢ provision of quality banking services; ➢ reduction of transaction costs and acceleration of implementation of banking services; ➢ has a positive effect on financial stability due to increased competition the role of fintech technologies in the regulation and supervision of banking activities is important. the central bank is paying special attention to the digitization of banking services as part of the work aimed at developing the national payment system and increasing the popularity of financial services. during the reporting period, the number of users of remote bank account management services increased by 1.5 times and reached 30 million as of january 1, 2023. in this case, 1.2 million users were business entities, and the number of individuals was 28.8 million. in the reporting year, the volume of operations carried out remotely by individuals online through the banks' mobile application programs amounted to 145.8 trillion soums. in this, online deposits made through mobile application programs 21.9 trillion soums, online conversion operations 20.9 trillion soums, online microloans 5.6 trillion soums, the volume of loan repayments 8.2 trillion soums and other payments in order to expand the scope of making contactless payments in the infrastructure of payment systems, the central bank, together with all commercial banks, is paying special attention to the issue of providing trade and service entities with payment tools that allow making payments based on qr-code and nfc technologies. american journal of business management, economics and banking volume 35 april 2025 p a g e | 4 www.americanjournal.org figure 1. the number and volume of transactions made in the qr-online system. (uzrmb report, 2023) the "qr-online" system, which was launched in order to make quick payments for goods and services using mobile applications using a qr code without directly using a bank card and payment terminal, is gaining popularity. in 2022, the number of qr-codes provided to business entities by the "qronline" information system increased by 8 thousand to 99 thousand compared to 2021, and the amount of transactions increased by almost 13 times to 191.6 billion soums. at the same time, as part of the expansion of contactless payment technology, the service of making payments for trade and paid services without using a bank card through the "humo pay" program (nfc system of a smartphone) is being provided through the mobile applications of 21 commercial banks. as of january 1, 2023, the number of subjects using the services of the tap-to-phone system (which allows receiving payments like a payment terminal) has increased from 2,300 as of january 1, 2023. from the above data, we can see that over the past years, commercial banks have increased the types of banking services with the help of fintech technologies, improved the quality of service, and at the same time, it was an important impetus to expand the bank's income. commercial banks are also offering new types of banking services, digitized banking platforms, to expand their revenue base. in particular: in turon bank, a system for allocating loans to legal entities and non-legal entities through the "colvir analytical platform (kfo)" program has been established, while in qishloq kirilish bank, a new mobile platform "quant" has been developed based on modern information technologies, with the help of which the bank details making payments, withdrawing cash from atms without using a bank card, and a number of similar additional possibilities have been created. the changes made in the process of business transformation of commercial banks will certainly not affect the bank's income, i.e. interest and non-interest income. in particular, we will consider these changes in the example of tif national bank. american journal of business management, economics and banking volume 35 april 2025 p a g e | 5 www.americanjournal.org table 1 dynamics of interest income of tif national bank (in billion sums) № кўрсаткичлар 31.12.2019 31.12.2020 31.12.2021 31.12.2022 31.12.2023 1 фоизли даромад 4 376 5 922 6 321 10 610 12 804 2 фоизсиз даромад 1 603 1 679 2 638 5 107 7 278 3 жами даромадлар 5 979 7 601 8 959 15 717 20 082 as can be seen from the data, the main part of the income of the banks operating in our banking system is the interest income. the share of interest income in total income was 4,376 billion soums in 2019, and 12,804 billion soums by 2023. we can see that it will increase by 3 times compared to the previous period. similarly, we can see the increase in non-interest income of the bank. in 2019, it was 1,603 billion soums, and by 2023 it was 7,278 billion soums. this is an increase of 145% compared to the previous period. the share of non-interest income, in turn, changed accordingly. declining percentage of interest income can be both positive and negative. its advantage is that banks receive additional interest-free income in return for performing various other activities typical of banks. however, it confirms that there is more negativity in the activity of the republic's banks in this case, it indicates that there are problems in these operations, the decrease in the implementation of bank operations that bring interest income. since the main operations of banks are related to interest income, it would be appropriate if they increase the implementation of these operations and increase their share in the income structure to 70-75 percent. conclusions and suggestions digital transformation is an inevitable process in which the world business begins to adapt to the new conditions and advantages of the digital economy society, and it is a tool that serves to improve people's living standards, create conveniences and increase the quality of life in society through the implementation of digital technology. in order to improve the quality of service and to transform traditional services into remote services, the bank established its own team of developers. now, automation of existing services and new innovative developments are carried out at the expense of their own resources, without involving outsourcing companies. based on the application of fintech technologies in the expansion of the income base in the transformation processes of commercial banks: ➢ improvement of mobile applications of commercial banks, ➢ automated scoring, ➢ development of credit monitoring systems, ➢ it is desirable to automatically collect service fees from cards ordered online and to expand the scope of existing services. issues such as strategic investors, adaptation to market principles, elimination of dependence on state funds and creation of equal competitive conditions are defined as the main directions of the banking american journal of business management, economics and banking volume 35 april 2025 p a g e | 6 www.americanjournal.org system reform strategy. therefore, it is necessary for banks to change their business models and improve the customer service system. references 1.decree of the president of the republic of uzbekistan dated may 12, 2020 no. pf-5992 "on the strategy of reforming the banking system of the republic of uzbekistan for 2020-2025" 2.о.i.lavrushina. “fundamentals of banking” textbook, edited by m.; knorus. 2008.-384 p. 3.о. b. voloshina “bank profitability as one of the main indicators of its economic position” social sciences. economics,№ 1 (29), 2014. 4.azizov u., karaliev t. etc. "banking" textbook т “iqtisod-moliya” , 2015-. 506p. 5.annual report of the central bank of the republic of uzbekistan for 2022. tif national bank official website. nbu.uz. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 79 www.americanjournal.org prospects for enhancing inclusive economic activity through modern technologies kobiljon abdukodirovich isayev associate professor, department of world economy and international economic relations qobiliy.isaev@gmail.com orcid: 0000-0002-4128-6354 a b s t r a c t k e y w o r d s this article discusses the role and prospects of modern technologies in enhancing the economic activity of visually impaired individuals. in today’s digital era, technologies are considered a key tool for increasing production capacity, improving efficiency, and optimizing time and costs. for visually impaired entrepreneurs, mobile applications, online platforms, cloud technologies, artificial intelligence, and big data are examined as effective approaches to overcoming barriers to economic participation. the article also highlights the importance of technologies in information security, employee productivity, and monitoring economic processes. furthermore, measures aimed at expanding the economic and social opportunities of visually impaired people, including reforms being implemented in the republic of uzbekistan, are analyzed. international cooperation, smart glasses, braille alphabet, artificial intelligence, smart cane, adaptive beacons. introduction currently, increasing the economic activity of visually impaired individuals is fully reflected in uzbekistan’s socially oriented state policies. in recent years, a number of programs and measures have been adopted and implemented in this area. in particular, to ensure state support for persons with disabilities in organizing entrepreneurial activities and to enhance their socio-economic activity, the decree of the president of the republic of uzbekistan dated december 1, 2017, no. pf-5270, “on measures for the fundamental improvement of the system of state support for persons with disabilities”, was adopted. this decree aims to improve the living standards and quality of life of persons with disabilities, provide them with medical and social assistance, protect their rights, freedoms, and legitimate interests, foster their active position in society, and enhance vocational training and employment. moreover, it emphasizes early identification and prevention of disabilities through a systematic and effective approach, while defining priority areas that ensure the participation of these citizens in inclusive economic growth and their active lifestyle. american journal of business management, economics and banking volume 43 december2025 p a g e | 80 www.americanjournal.org literature review and methodology issues related to ensuring employment for visually impaired individuals, developing ict skills, improving their social status, and integrating them into socio-economic processes have been thoroughly studied by international economists such as bell e.c., bates-harris c., klaus r., shiri a., kyle r., richard l., jacob w., brown t.a., and moore m.t. among recent foreign researchers, the works of fedoseyeva v.a., noviskiy n.i., gornostay l.ch., goryushkin a.a., begentayev m.m., kalendareva s.g., smirnykh s.n., andreyeva ye.i., gorshkova i.d., kovalevskaya a.s., rojdestvenskaya n.v., boguslavskaya s.b., and bobrova o.s. have examined enterprise economics and socio-economic efficiency, including issues of employment for persons with limited abilities, particularly visually impaired individuals. in uzbekistan, theoretical and methodological aspects of industrial enterprise activities, their classification, development foundations, challenges, and their role in ensuring employment for persons with disabilities, including the visually impaired, have been partially covered in the research of uzbek economists such as mustafakulov sh., khotamov i., isakov m., abduvaliyev a., jiyanov u., rakhimberdiyev o.f., egamberdiyeva m.sh., ulashev i.o., atamuradov sh.a., muratov r.s., djalalova i.a., oripov s.sh., kholmatov n.b., and imomova n.a. however, in the era of global development and change, within the framework of international integration and cooperation aimed at ensuring social welfare, scientific research, policies, and achievements related to increasing the employment and economic activity of persons with disabilities, particularly the visually impaired, are steadily growing. in this context, it becomes a pressing task for uzbekistan to introduce new approaches into ongoing reforms, including the active organization of industrial enterprises and private entrepreneurial activities involving visually impaired persons, enhancing their role in the economy, ensuring national and international competitiveness, and evaluating and improving efficiency. achieving these goals first requires the establishment of a systematic research framework [1]. indeed, over the years of independence, uzbekistan has not conducted extensive, systematic, and largescale scientific research specifically aimed at improving the efficiency of industrial enterprises involving visually impaired individuals. this highlights that many unresolved issues in this area still require attention. the study employs systematic analysis and approaches, theoretical reflection, logical and structural analysis, induction, deduction, statistical grouping and generalization, expert evaluation and forecasting, as well as comparative and cross-analysis methods. analysis and results international statistics indicate that the number of visually impaired individuals is increasing worldwide due to various factors. in the 21st century, there is a growing need to thoroughly study their physical, medical, social, intellectual, professional, and living conditions, as well as to expand national, regional, and international cooperation aimed at addressing these challenges. these issues are among the most urgent global problems, with over a quarter of the world population affected by such conditions. the risk of further increases and the intensifying threats associated with them underline the necessity for serious and sustained action. consequently, the international community – including national, regional, and global organizations, nongovernmental institutions, and specialists – is increasingly cooperating on scientific research, technological development, medical and surgical practices, and studies aimed at restoring vision or preserving the limited visual capacity of individuals. the results of these initiatives are documented in international reports and american journal of business management, economics and banking volume 43 december2025 p a g e | 81 www.americanjournal.org programs, conferences are held, and agreements are implemented. among these initiatives, the marrakesh treaty stands out as a significant step for facilitating access to published works for visually impaired persons, those with limited vision, or others who face barriers to printed materials. this initiative ensures the protection of many internationally recognized human rights, particularly those guaranteed under the convention on the rights of persons with disabilities (crpd). as of october 2016, 168 countries had ratified the treaty, emphasizing its global recognition and importance in promoting inclusive access to information [2]. article 32 – “international cooperation” is of particular importance: 1. the participating states recognize the importance of international cooperation and its promotion in order to support national efforts to implement the objectives and purposes of this convention, and take appropriate and effective measures in this regard among states. in cooperation with relevant international and regional organizations and civil society, in particular organizations for persons with disabilities, these measures include: a) ensuring that international cooperation, including international development programs, covers persons with disabilities and is accessible to them; b) assisting and supporting capacity-building, including through the exchange of information, experience, training programs, and best practices; c) promoting cooperation in the use of scientific research and scientific-technical knowledge; d) providing technical and economic assistance where necessary, including facilitating access to and sharing of available assistive technologies and technology transfer. 2. the provisions of this article do not affect the obligations of each participating state to fulfill its duties under this convention [7]. article 24 – “education”: 1. participating states recognize the right of persons with disabilities to education. to implement this right without discrimination and on the basis of equal opportunity: a) participating states shall establish inclusive education at all levels and promote lifelong learning aimed at achieving the following goals; b) persons with disabilities shall be enabled to fully develop their personality, talents, creativity, as well as their intellectual and physical abilities. 2. in implementing this right, participating states shall ensure: a) assistance in learning braille, alternative scripts, augmentative and alternative methods, communication tools and formats, orientation and mobility skills, as well as support and guidance from peers; b) assistance in learning sign language and the promotion of the linguistic identity of the deaf community. like anyone wishing to start their own business, a visually impaired person also seeks economic skills, success, and effective tools to manage their time and business efficiently [3]. in today’s age of technology and information, computers and communication technologies occupy a significant role as supportive tools in many sectors. these technologies are invaluable for expanding business activities while providing high-performance services. in promoting the economic activity of visually impaired persons, these technologies offer numerous new opportunities in daily work. companies use facebook pages and twitter handles to communicate with society. this provides an excellent way to connect with people, advertise their brand, and maintain contact with loyal customers american journal of business management, economics and banking volume 43 december2025 p a g e | 82 www.americanjournal.org online. expanding economic activity further depends on effectively utilizing modern technologies, which helps increase production capacity and output, improve productivity, and optimally allocate time and costs. these are key challenges in developing entrepreneurship involving visually impaired persons. by studying the causes of such challenges and addressing them, it is possible to enhance the economic and social activity and efficiency of visually impaired small entrepreneurs. for example, many companies and organizations usually implement their own mobile applications to interact with clients, thereby gaining a significant position in economic relations [4]. updating all current business information in a mobile application and enabling clients to access sufficient information from profiles at any time increases market sustainability. this type of information may include phone numbers, directions, pricing, and other data relevant to the business. technology is consistently used by companies to support high-quality customer service. online chat boxes, emails, and phone lines, along with big data, machine learning, data science, artificial intelligence (ai), electronic ontology (eot), and digital technologies, have significantly transformed the economic activities of visually impaired individuals. for instance, being informed in real time enables clients to collaborate more easily with each other in a technology-based economy. in the 21st century, considered the global information age, increasing the economic activity of visually impaired persons is directly linked to accessing relevant information about companies and organizations through mobile applications or websites. in this context, enhancing productivity in goods production or small business services involves guiding, accompanying, managing, and monitoring visually impaired entrepreneurs’ activities using large-scale data in text, audio, video, online, cloudbased technologies, and robots. this forms the main objective of our research. however, the economic activity process is not free from several challenges, specifically: 1. data security: most modern companies face threats to information security and personal data (passport, bank cards, taxes). technologies can be used to protect financial information, confidential executive decisions, and other proprietary information that may provide competitive advantages. simply put, technology helps businesses keep their ideas away from competitors. having computers with personal passwords ensures that no project is copied or compromised, which is a fundamental step in establishing orderly business operations for visually impaired entrepreneurs. 2. productivity losses due to employee absence: visual impairments can lead to accidents and absenteeism, resulting in lost productivity and presenteeism [5. advantages of integrating modern technologies into business processes include: increased productivity; effective communication; mobility; reduced working hours; 24/7 access to data via software and applications; growth in e-commerce sales; website and content readability; efficient inventory management and storage; easy sales tracking; american journal of business management, economics and banking volume 43 december2025 p a g e | 83 www.americanjournal.org simplified financial accounting. visual impairment or blindness significantly affects economic performance, as 90% of visually impaired individuals face multiple obstacles and challenges to work effectively. according to the decree of the president of the republic of uzbekistan no. pq-4742 dated june 8, 2020, titled “on measures to simplify the state regulation of entrepreneurial activity and selfemployment,” the professions identified are considered as prospects for increasing the economic activity of visually impaired individuals (table 1). in the context of transformation, several global technological trends have been studied regarding the enhancement of economic activity of visually impaired individuals in uzbekistan. the following were found to be particularly important: table 1 modern directions for self-employment physical vocational intellectual social cleaning residences carpentry tutoring childcare landscaping plumbing organizing and running clubs elder care simple repair works car washing guide (tour guide/interpreter) making popcorn or ice cream at home field work hairdressing copywriter preparing cold drinks, ayran, traditional sweets and snacks at home for sale landscaping / groundskeeping collecting recyclable materials (paper, plastic, metal, and other raw materials) freelancer — animal husbandry shoe repair recruiter mentor loading and unloading goods sewing virtual assistant tutor retail of agricultural products guard real estate assistant physical education and fitness flower and decorative tree cultivation craftwork / small handmade items designer — — chef braille equipment specialist — — sports teacher — — music tourism — digital signs. digital signs involve the use of display technologies such as lcd monitors, video walls, and projections to present marketing messages for businesses. this is one of the effective methods for advertising entrepreneurial activities and products to visually impaired individuals. digital gestures not only provide information about the company’s operations but also enable active communication with consumers. this saves the cost of traditional advertising and increases quick sales. technology. bringing technology services to visually impaired entrepreneurs living in rural and mountainous areas can be a valuable business concept. in rural areas, such services are usually limited. introducing access to technology through the installation of wi-fi points and cable connections, along with training in computer programs, increases economic efficiency [6]. tourism. many rural and mountainous regions have beautiful natural attractions suitable for outdoor recreation. if competition in this area is low, starting a tourism-related business can be a smart business idea. in such cases, adopting applications integrated with global tour operators, routes, and guiding american journal of business management, economics and banking volume 43 december2025 p a g e | 84 www.americanjournal.org services provides new employment opportunities and positions. adaptive technological assistants. each of these enterprises requires adaptive technology. key needs include screen readers, voice labeling systems, and flexible accounting software. these tools allow visually impaired individuals to “read” websites and documents, as well as track and manage inventory, sales, and business accounting. food service business. in this type of business, the entrepreneur sells a variety of food products to the public. this can take place in a stationary building, a permanent service location, or a mobile stand or cart for various events. implementing a voice labeling system is one of the main approaches to keep customers well-informed. this technology can cover all items for sale. for example, microsoft soundscape has implemented a detailed audio map describing events occurring around visually impaired individuals. this allows customers to explore all products and services in their surroundings while walking along the street. it converts information into voice beacons and synthesized 3d stereo sound via a constantly updated 3d sound map, providing context and explanations to the public. knowledge at fingertips. braille has been used for nearly 200 years as a tactile reading method with fingertips. now, it has transitioned to digital formats, supported by digital braille displays and keyboards, as well as the updated version of microsoft windows screen reader – narrator – which converts pages to screen content. beyond microsoft’s efforts, tablet-style braille touchscreens have already become popular among entrepreneurs. at the 2019 assistive technology industry association conference held in orlando, florida, innovations such as braibook – a palm-sized electronic braille reader – and braille buzz, an electronic platform designed to teach braille writing, were showcased [7]. beacons of change. bluetooth beacons used by foresight augmented reality provide highly precise, customized guidance for visually impaired or low-vision individuals. while basic gps technology can guide users to a general location, beacons installed in stores, restaurants, or public buildings can direct them to the exact entrance of the building being visited. additionally, once inside, other beacons can guide users to personal tasks or other important locations. electric vehicles. to ensure the safety of visually impaired individuals, electric vehicles must emit specific sounds that can be heard when moving at low speeds or reversing. some manufacturers already widely use special devices that broadcast artificial noise in their electric vehicles. by regulating public safety on the roads, zero-accident outcomes enhance both the economic and social effectiveness of any entrepreneur. smart glasses. researchers at ajman university in the united arab emirates have developed a set of smart glasses using artificial intelligence to provide reading and navigation information, as well as to detect hazardous areas and surfaces. the glasses connect to a smartphone via a processor, allowing the system to operate without an internet connection. although still in early development, these smart glasses operate with 95% reading accuracy. ai for accessibility. last year, microsoft launched the “ai for success” program, aimed at fostering innovation and enhancing human potential for people with disabilities. this technology serves as a guidance system for visually impaired entrepreneurs working in startups, developer teams, research centers, and non-profit organizations. the program is continuously monitored by experts 24/7 for ongoing support [8]. smart cane. smart canes equipped with ai-based brains and data-distributing technology help visually american journal of business management, economics and banking volume 43 december2025 p a g e | 85 www.americanjournal.org impaired individuals move safely through factories and industrial facilities. smart canes not only detect and alert users to obstacles but also integrate with smartphones. this enables additional features, from voice gps navigation to real-time description of surroundings and objects. users can set their destination before leaving home and receive voice guidance while walking. for example, the cane informs the user when passing favorite locations or approaching the required bus stop. the most popular smart cane in workplaces, developed by wyewalk, combines a mobile app with voice commands, manufacturing technologies, automated machinery, control of heavy mobile robots, and object recognition to simplify daily navigation. assistive reading applications. reading assistance apps help visually impaired entrepreneurs use computers, smartphones, and other devices more easily. such apps convert on-screen text into a format accessible for low-vision users, which may be tactile, auditory, or a combination of both. assistive reading devices with acoustic output and refreshable braille displays relying on speech synthesizers have become essential tools. advanced reading apps perform additional functions, such as locating selected text, identifying active menu selections, or reading text displayed in a specific color. widely used text-to-speech programs include jaws, kurzweil education, brltty, cdesk compass, kobra, dolphin guide, ee-pal® ace, nvda, speakup, among others. speech-to-text software. speech-to-text software helps with writing and social interaction in business processes. as the name suggests, these solutions convert natural speech into text with up to 99% accuracy. the software breaks down spoken messages into phonemes and stores them in a database to select the most appropriate written equivalent. modern speech recognition solutions include additional functions such as speech adaptation. they allow the algorithm to adapt, accurately transcribe unique and domain-specific terms, and automatically convert numbers into dates, currencies, or phone numbers. popular speech recognition solutions among visually impaired users include dragon dictation, dragon naturallyspeaking, j-say pro, and windows speech-to-text [2]. virtual reality hearing tools. virtual reality is also used to assist visually impaired entrepreneurs in “seeing” better. instead of immersing users in a surreal experience, vr reproduces a virtual copy of the real world adapted for perception by low-vision users. an example of vr-assisted technology for the visually impaired is irisvision, a device combining smartphone and vr headset functions. it helps users make independent decisions, express ideas, and deliver presentations in business processes. the smartphone camera captures what a low-vision person sees and redraws the scene to enhance visibility, allowing the user to perceive objects at a comfortable distance. assistive technology also enhances vision in dark basements or tunnels. smart assistant. aira developed a device for visually impaired entrepreneurs that responds to onstar phone calls, providing guidance for navigating routes. be my eyes is a free application connecting visually impaired or blind users with sighted business representatives and company staff for live video support. dancing dots was founded by a visually impaired musician and develops low-vision aids like braille music and lime lighter music readers to make music accessible to sighted users. dot inc dot pad, launched in march 2022, is a tool that displays images and text instantly on a tactile display from an iphone or ipad, enhancing economic productivity. it uses technology integrated with apple’s voiceover assistive algorithm to interpret graphics and visuals. discover technologies sharepoint is implemented for visually impaired, low-vision, or cognitively challenged users. this technology serves as a primary online collaboration tool for many companies. american journal of business management, economics and banking volume 43 december2025 p a g e | 86 www.americanjournal.org experienced low-vision entrepreneurs have noted that sharepoint enables reliable, error-free, and stable economic interactions while easily addressing accessibility challenges. dragon technology by nuance is a speech recognition software allowing users to create documents, browse the internet, send emails, and perform other tasks on a computer using only their voice, efficiently and accurately. elia developed a frame-based braille alternative. its unique feature allows users to easily perceive the start and end of each character, providing hope for a large portion of visually impaired and braille-illiterate users [3]. esight glasses are innovative electronic assistive technology specifically developed for low-vision individuals, maximizing remaining sight. orcam is a unique wearable device featuring a small but powerful 8-megapixel smart camera that connects to a tiny computer (the size of a sunglasses case). it can be used in business activities for packaging, product identification, label reading, text and image processing, and translation. seeing ai is a free application developed by microsoft that narrates the world around you. designed for low-vision users, it uses artificial intelligence to describe people, text, and objects. stridelight combines “bright clear light and walking support” as an effective visual aid. designed for visually impaired entrepreneurs, this cane helps prevent falls, maintain independence, and reduce fear associated with walking in low-light conditions. knfb reader. this application only requires a photo of printed text to read it aloud. it can be configured to read various types of documents and helps the user position the camera correctly when capturing a document. vision touch. similar to the above app, this technology specializes in object recognition. it is used to describe photographed objects. the app combines automatic image recognition systems with assistance from real human describers. for example, it can be useful for users to get a description of a room they have never visited, identify clothing colors, or distinguish between a regular coffee pack and a decaf one. coin identifiers. many applications quickly identify banknotes. these apps are useful for knowing how much money you have in your pocket or verifying that a store clerk has given you the correct change [4]. color id. while primarily useful for computer graphic designers or similar professions, visually impaired individuals often need to know the color of objects or products. the advantage is that once these systems are implemented, the benefits usually outweigh the short-term difficulties during the transition. using this technology in business can help increase production efficiency. time management platform. this is an excellent tool for identifying where and by whom work hours are spent. it helps pinpoint wasted time and find opportunities to use time more effectively. proper use of this analysis can improve accountability, process optimization, and productivity. digital reporting. this technology helps simplify business processes, especially time-consuming transcription tasks. it can be used as a tool for managing projects and tasks to ensure full accountability in daily business. create a digital filing system to organize, store, share, and locate documents efficiently. develop an effective email management process to stay informed about message flows. tools for managing company financial reports can help identify inefficiencies and increase revenues. online invoicing services reduce collection costs, while online budgeting tools stabilize and decrease expenses. additionally, this technology allows businesses to efficiently manage taxes online and american journal of business management, economics and banking volume 43 december2025 p a g e | 87 www.americanjournal.org develop new revenue streams through online product sales [5]. the modern software, assistive devices, and equipment mentioned above enable visually impaired individuals to freely participate in social and economic activities in daily life, including education and work. however, no matter how advanced these tools and devices become, taking proper medical and health measures remains the most effective solution. table 2 ways to enhance sustainable development and efficiency in industrial enterprises involving visually impaired individuals № directions indicators for enhancing sustainable development and efficiency in enterprises 1 economic reducing production costs: minimizing the use of primary materials; decreasing the amount of losses; improving labor productivity by optimizing staff structure; implementing resourceand energy-saving measures. expanding and developing production. 2 social increasing safety levels during work. reducing the number of workplace injuries. supporting employees with fair wages and incentives. training employees, enhancing their qualifications, and actively involving them in research on innovative ideas and projects. 3 environmental complying with energy consumption reduction standards. reducing production waste. 4 technological introducing new technologies into production. modernizing existing technologies. monitoring the quality of product manufacturing. software-based management of technological processes. in uzbekistan, it is advisable to ratify the “convention on the rights of persons with disabilities” (new york, 13 december 2006) to ensure that the rights and interests of visually impaired persons and all persons with disabilities are defined, guaranteed, and protected in accordance with international standards. to further improve the standard of living of persons with disabilities, including the visually impaired, it is appropriate, in accordance with article 380, part 1 of the tax code of the republic of uzbekistan, to increase the income tax privileges for persons with disabilities from childhood and for persons with disabilities of groups i and ii by 1.41 to 3 times the minimum wage. to ensure social justice in the receipt of disability pensions, given that individuals with the same level of disability have equal limitations in earning capacity and require similar health-related expenses, it is necessary to equate the disability pension for persons who became disabled from childhood with that for persons who became disabled during their lifetime (including during employment). additionally, a monthly allowance should be introduced for the legal guardian of children under 18 with disabilities who require care from others [6]. to ensure social interaction and enhance literacy and intellectual potential of visually impaired children and adults, they should be gradually provided with the technical devices necessary for life, including voice thermometers, voice tonometers, and combined braille alphabets. american journal of business management, economics and banking volume 43 december2025 p a g e | 88 www.americanjournal.org to form an effective system for supporting persons with disabilities and improve their quality of life, it is necessary to: prevent discrimination based on disability; ensure equal conditions in realizing the rights, freedoms, and legal interests of persons with disabilities and enforce accountability for violations; improve the level and quality of medical and social assistance; develop an inclusive education and employment system that ensures the social and economic participation of persons with disabilities. to improve the socio-economic conditions of visually impaired persons and all persons with disabilities, it is necessary to ensure employment and involve them in entrepreneurial activities through vocational training. a national program should be developed to provide: preferential access to vocational education institutions for persons with disabilities; incentives for entrepreneurial training and self-employment, including preferential loans and subsidies. to simplify and improve the system of providing state services for persons with disabilities and the elderly, who require special attention and care, it is necessary to actively introduce digital technologies in delivering state services. this will create additional convenience and accessibility for elderly and disabled individuals [7]. conclusion and recommendations this article provides a detailed overview of the significance and prospects of modern technologies in enhancing the economic activity of visually impaired persons. in today’s digital age, it is a pressing task to widely introduce modern technologies to increase the economic activity of visually impaired individuals and actively involve them in social life. technologies can help optimize work processes, expand social interaction, ensure employment, and broaden economic opportunities. at the same time, issues such as ensuring data security, protecting the rights of persons with disabilities, and improving inclusive education remain important. based on the article, the following recommendations are proposed: 1. ratification of the “convention on the rights of persons with disabilities”: it is necessary to ratify this convention in uzbekistan to ensure the protection of the rights of visually impaired persons and other persons with disabilities according to international standards. 2. expansion of tax benefits: within the framework of the tax code of the republic of uzbekistan, it is advisable to expand the scope of income tax benefits for persons with disabilities from childhood and for persons with disabilities of groups i and ii. 3. fair pension and allowance system: it is necessary to equalize the pension amounts for persons with disabilities and introduce a special allowance for caregivers of children with disabilities from childhood. 4. provision of technical devices: to improve the quality of life and intellectual potential of visually impaired individuals, it is important to gradually provide devices such as voice thermometers, voice tonometers, and combined braille alphabets. american journal of business management, economics and banking volume 43 december2025 p a g e | 89 www.americanjournal.org 5. ensuring employment of persons with disabilities: to increase economic activity, it is necessary to develop a national program for vocational training and engagement in entrepreneurial activities, including providing preferential loans and subsidies. 6. introduction of digital technologies: it is advisable to simplify state services for persons with disabilities and create additional convenience through the use of digital technologies. 7. inclusive education and employment: it is necessary to develop an inclusive education system and expand employment opportunities for persons with disabilities. implementing these recommendations will play a key role in ensuring the economic, social, and intellectual development of visually impaired persons. at the same time, the broad introduction of modern technologies will improve their overall quality of life. references 1. mustafakulov sh., isayev q. inclusive economy: necessity, trends, and prospects. // xalq so‘zi newspaper, december 22, 2022, №260 (8322), p. 5. 2. decree pf-5270 of the president of the republic of uzbekistan, dated december 1, 2017, “on measures to radically improve the system of state support for persons with disabilities.” 3. resolution pq-4742 of the president of the republic of uzbekistan, dated june 8, 2020, “on measures to simplify the state regulation of entrepreneurial activity and self-employment.” 4. brown, t. a., & moore, m. t. (2012). confirmatory factor analysis. in r. h. hoyle (ed.), handbook of structural equation modeling (pp. 361-379). new york: guilford press. 5. vashistha, a., cutrell, e., dell, n., & anderson, r. (2015). social media platforms for lowincome blind people in india. assets '15: proceedings of the 17th international acm sigaccess conference on computers & accessibility, october 2015, pp. 259-272. 6. sai santhosh, s.; sasiprabha, t.; jeberson, r. (2010). bli-nav embedded navigation system for blind people. recent advances in space technology services and climate change 2010 (rsts & cc-2010). 7. stuive, i. (2007). a comparison of confirmatory factor analysis methods: oblique multiple group method versus confirmatory common factor method. unpublished dissertation, university of groningen, groningen, the netherlands. retrieved from http://irs.ub.rug.nl/ppn/305281992. 8. the voice of blind and partially sighted people in europe, germany – article 27. http://irs.ub.rug.nl/ppn/305281992 american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 163 www.americanjournal.org teaching business english in uzbekistan: needs, opportunities, and challenges mirzaev djurabek oltibayevich chief specialist for projects at the surkhandarya branch of the graduate school of business and entrepreneurship under the cabinet of ministers of the republic of uzbekistan a b s t r a c t k e y w o r d s in an era of globalization and economic integration, business english has become a crucial tool for professional success. this article explores the current demand for business english education in uzbekistan, focusing on its role in facilitating communication with international partners, navigating business documentation, and enhancing branding strategies. the paper reviews the existing infrastructure, including university programs, language courses, and ongoing projects. through practical observations and sample data, the study reveals gaps in curriculum design, teacher preparedness, and the need for digital resources. it concludes with strategic recommendations for aligning business english instruction with real market needs. business english, uzbekistan, esp, professional communication, language education, digital tools, curriculum. introduction the global business environment increasingly demands fluency in english, particularly in countries like uzbekistan, which are integrating into the world economy. as uzbekistan expands its international trade, investment partnerships, and participation in global markets, the need for english for specific purposes (esp), especially business english, becomes more pronounced. this study aims to analyze the current landscape of business english instruction in uzbekistan, identify the core needs, and evaluate potential opportunities for enhancement. literature review background business english, a branch of esp, focuses on language skills required in professional settings, including email correspondence, negotiations, report writing, and presentations. numerous studies highlight the growing importance of business english in non-native english-speaking countries, especially in transitional economies (st. john, 1996; dudley-evans & st john, 1998). in the uzbek context, research is relatively scarce, but recent policy documents and educational reforms indicate a growing interest in aligning language education with economic needs (moes uzbekistan, 2022). american journal of business management, economics and banking volume 35 april 2025 p a g e | 164 www.americanjournal.org methodology this study employs a qualitative approach, combining document analysis, expert interviews, and classroom observations. the research involved semi-structured interviews with five business english instructors from three leading universities in tashkent, along with content analysis of university curricula, language center brochures, and policy documents. observational data were also collected from two private companies offering in-house english training. findings / analysis role of business english in practice business english serves as a bridge in communication with international companies, assisting in contract negotiations, formal emails, and virtual meetings. language also plays a critical role in marketing and branding strategies, where cultural appropriateness and linguistic accuracy are key. demand in uzbekistan there is a growing demand for business english proficiency in the private sector, especially in finance, logistics, and it industries. employers increasingly consider english skills as a prerequisite for hiring and promotion. infrastructure and gaps while many universities offer business english courses, the curriculum often lacks practical relevance. private language centers provide ielts or general english courses, with few offering specialized business-focused modules. teacher training, availability of up-to-date materials, and access to digital platforms remain limited. projects by british council and usaid are trying to fill some of these gaps. practical cases observation in a logistics firm showed structured english lessons focused on emails and customer communication. informal feedback from employees emphasized the benefit of learning business-specific vocabulary and soft skills like negotiation. a mini-survey conducted among 20 learners highlighted the desire for more interactive, context-based learning. discussion the findings suggest that while there is a significant and growing demand for business english in uzbekistan, the educational supply is not fully aligned with this demand. there is a disconnect between curriculum content and workplace needs. teaching approaches must shift toward real-world applicability, with greater emphasis on scenario-based learning and integration of digital tools. teachers require ongoing professional development, and educational institutions should collaborate more with the private sector. conclusion and recommendations. business english should be treated as a strategic skill in uzbekistan’s educational and economic planning. key recommendations include: revising curricula to reflect real business communication needs promoting collaboration between universities and industries enhancing teacher training programs utilizing online platforms and mobile apps for flexible learning supporting initiatives by international organizations. american journal of business management, economics and banking volume 35 april 2025 p a g e | 165 www.americanjournal.org references: 1. bargiela-chiappini, f., & nickerson, c. (2003). intercultural business communication. peter lang. 2. british council uzbekistan. (2023). skills for english program report. 3. chan, c. s. c. (2011). teaching oral communication in esp: an integrated approach. english for specific purposes, 30(1). 4. charles, m. (2007). language matters in global communication. journal of business communication. 5. dudley-evans, t., & st john, m. j. (1998). developments in english for specific purposes. cambridge university press. moes uzbekistan. (2022). 6. ellis, m., & johnson, c. (1994). teaching business english. oxford university press. 7. hutchinson, t., & waters, a. (1987). english for specific purposes: a learning-centered approach. cambridge university press. 8. hyland, k. (2006). english for academic purposes. routledge. 9. long, m. h. (2005). second language needs analysis. cambridge university press. 10. national program for the development of foreign language teaching. tashkent. st. john, m. j. (1996). business is booming: business english in the 1990s. english for specific purposes, 15(1), 3–18. 11. nickerson, c. (2005). english as a lingua franca in international business contexts. english for specific purposes, 24(4). 12. paltridge, b., & starfield, s. (2013). the handbook of english for specific purposes. wileyblackwell. 13. swales, j. m. (1990). genre analysis: english in academic and research settings. cambridge university press. 14. usaid uzbekistan. (2023). workforce development in language skills. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 164 www.americanjournal.org mapping of moutain and foothill landscapes siddikov rasuljon uktamovich (phd) associate professor tdtu kokand branch ergasheva marjona otabek qizi student of group 6.24-gg, tdtu kokand branch a b s t r a c t k e y w o r d s this article analyzes the theoretical and practical aspects of mapping mountain and foothill landscapes. it examines the structure of landscapes, the natural and anthropogenic factors affecting them, as well as the significance of modern cartographic technologies. landscape, cartography, mountain regions, foothill zones, gis (geographic information system) technologies. introduction the study and mapping of mountain and foothill landscapes play a crucial role in natural resource management, environmental monitoring, and regional planning. these regions possess a complex geomorphological structure, and their landscapes are formed based on factors such as topography, climate, soil, and vegetation cover. various cartographic methods are employed in the study and mapping of landscape complexes, among which analytical and synthetic methods are the most essential. using scientific and technological advancements, as well as modern technologies in landscape mapping, is of great importance. aerial and satellite imagery play a key role in large-scale mapping of landscape complexes, often interpreted through visual decoding. the similarity method may also be used in compiling landscape maps. in mapping foothill regions, aspects such as relief and erosion processes, geological composition, seismic activity, soil fertility, vegetation cover, water resources, precipitation, and resistance to anthropogenic impacts are considered. mapping mountain and foothill landscapes is important for various purposes. for example monitoring the risks of natural disasters (landslides, floods, earthquakes), managing agriculture and water resources, planning urbanization and infrastructure, protecting ecosystems, and developing sustainable development strategies. both traditional methods and modern technologies are used in the mapping process. these include gis software, digital elevation models (dem), remote sensing, satellite imagery, and dronebased aerial photography. several environmental issues exist in uzbekistan’s mountainous areas. a decline in biodiversity has been observed. desertification and soil erosion affect 30–40% of mountain regions. according to research conducted across the country in 2022, forest areas in the mountains have decreased by 15%. the main causes include illegal logging and overgrazing. these problems are linked to local climate changes and mismanagement of natural resources. the climate characteristics american journal of business management, economics and banking volume 37 june2025 p a g e | 165 www.americanjournal.org of mountain and foothill landscapes vary widely, primarily depending on global location and altitude. mountain regions are vast areas with folded and fault-block structures of the earth's crust, where elevation differences can span thousands of meters. these areas feature mountain ranges, isolated peaks, valleys, and wide plains. mountain ranges are large, elongated landforms with steep slopes on both sides. their elevation can range from 200 meters to several kilometers above sea level. mapping is based on the following principles: 1. in mapping landscapes, it is necessary to select the object, identify the type of geocomplex to be represented, determine the map scale and intended purpose, and consider the degree to which the landscape has been studied. 2. geocomplexes depicted on maps must be identified and delineated through research. it is advisable to use indicators such as soil types, landforms, and the lithological composition of parent rocks. 3. landscapes on the map should be classified and grouped according to their similarities, forming a classification scheme. this serves as the basis for creating the map’s legend, reflecting the content and essence of landscape maps, and enhancing their scientific and practical value. 4. typological landscape maps should be accompanied by legends that clearly express the essence and content of the geocomplexes depicted. this principle is considered the most complex, as the legend must reflect the names, characteristics, structural composition, typological divisions, relief elements, soil types, and zonal or azonal vegetation. mapping mountain and foothill landscapes at various scales and depicting geographical objects, phenomena, and events on the resulting maps involve the use of special cartographic techniques—such as linear symbols, contour lines, and qualitative color areas. american journal of business management, economics and banking volume 37 june2025 p a g e | 166 www.americanjournal.org mountain and foothill landscapes are natural complexes formed in high (mountain) and lower (foothill) relief zones. as distinct natural geographic complexes, these areas possess unique topography, climate, soil, flora, and fauna, which develop through complex interrelationships. the landscapes in these regions are based on the principle of vertical zonation, with significant changes in natural components and their interrelationships as elevation increases. in mountain regions, the terrain is rugged with steep slopes and high elevations, leading to colder climates, increased precipitation, and zonal distribution of vegetation and soil cover. typical mountain landscapes include forest zones, subalpine and alpine areas, and bare rocky terrains. these areas often have short growing seasons, relatively low soil fertility, and minimal anthropogenic impact. at the same time, mountain regions are notable for their tourism and recreational potential. foothill areas are located at the base of mountain ranges, usually at elevations between 500 and 1500 meters. these regions have a milder climate, fertile soils, diverse vegetation cover, and are favorable for agriculture. the main ecological issues in mountain and foothill landscapes include increased erosion, deforestation, soil degradation, and the negative effects of climate change. in such conditions, the scientific study, monitoring, and protection of these landscapes have become pressing issues. today, the study of mountain and foothill landscapes increasingly relies on modern geographic information systems (gis), remote sensing technologies, and digital mapping methods. these tools allow for the analysis of landscape composition, current conditions, and changes over time, enabling sustainable management and environmental planning. for example, this can be observed in the piedmont landscapes of the fergana valley. these landscapes can be classified into categories such as slightly altered, modified, moderately altered, strongly altered, and moderately strongly altered, based on the degree of anthropogenic transformation. lower piedmonts have been rapidly developed under anthropogenic influence. due to irrigation difficulties in upper piedmonts, these areas are more often used for dry farming and pasture-based livestock. american journal of business management, economics and banking volume 37 june2025 p a g e | 167 www.americanjournal.org lower and upper piedmonts differ in their natural and economic characteristics. lower piedmonts are favorable for economic activity, densely developed, and subject to heavy anthropogenic pressure. in contrast, upper piedmonts are relatively less developed, with well-preserved natural components but vulnerable landscapes from an ecological standpoint. both zones require special attention in terms of sustainable development, rational use of water resources, and combating land degradation. references: 1. sh. mirziyoyev's address at the extended meeting of the cabinet of ministers on january 14, 2017, dedicated to the comprehensive analysis of the country’s socio-economic development in 2016 and defining the most important directions and priorities of the government’s economic and social program for 2017. 2. decree no. pf-4947 of the president of the republic of uzbekistan dated february 7, 2017, "on the action strategy for the further development of the republic of uzbekistan." collection of legislative documents of the republic of uzbekistan, 2017. 3. gafurova, l.a. climate change and the issues of preserving and restoring soil fertility in uzbekistan: realities, trends, and prospects. in: proceedings of the all-russian scientific and practical conference with international participation on the 85th anniversary of the v.v. dokuchaev soil science institute. in: soil science in russia: contemporary challenges and main directions of development. moscow, 2012. pp. 104–108. 4. kuziboyeva, ozodkhon, and nargiza hamidova. natural-geographic regionalization of the fergana valley. economics and society, 2023. 5. muminov, d.g., and m. khabubullaeva. use of irrigated lands and landscape-reclamation evaluation (case study of andijan region). economics and society, issue 1–2 (104), 2023, pp. 324–329. 6. kuziboyeva, o. landscape-land reclamations approach in the study of conal landscape complexes. the american journal of applied sciences (2020): 1-6. 7. аzimjonova, sh. geographic for the use and protection of natural resources in the fergana valley. economics and society, issue 1-2(104), 2023, pp. 336-341. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 50 www.americanjournal.org cluster development in uzbekistan’s economy: production volume, investment flows, and export dynamics (2022–2024) ulugbek otabekovich urinboev teacher, department of economics, mamun university uurinboyev@mamunedu.uz a b s t r a c t k e y w o r d s this article analyzes the formation and development of the clustering process in the economy of uzbekistan. although the cluster system is relatively new, it plays an important role in attracting investments, expanding production volumes, and increasing export potential. the purpose of the study is to study the dynamics of production, investment, and export indicators of clusters. statistics for 2022-2024 showed that cluster production volumes are growing steadily, investments are modernizing infrastructure, and export indicators are increasing competitiveness in international markets. the results confirm the formation of the cluster system as a modern production model in the economy of uzbekistan. clustering, production volume, investment flows, export potential, innovative technologies, competitiveness, modernization, economic efficiency, national economy introduction today, the term “cluster” is frequently encountered in our daily discourse. in the economies of developed countries, this concept is regarded as the highest stage of development, representing a highly flourishing sector. this system is seen as a key contributor to economic growth by prioritizing the implementation of scientific advancements, ensuring the efficient utilization of the labor force, and leveraging modern technologies, including the capabilities of artificial intelligence. although the clustering process has been recently introduced into the national economy of uzbekistan, it is already demonstrating gradual positive effects and is emerging as an integral component of our economic structure. the term “cluster” encompasses a very broad meaning, with the process holding a distinct role across various sectors. essentially, this mechanism ensures that all production stages-from the initial source of raw materials to the final manufacturing process of any finished product-are interconnected and intrinsically linked. this process not only facilitates the production of specific goods but also ensures the population is supplied with high-quality and reliable consumer products, contributes to the american journal of business management, economics and banking volume 43 december2025 p a g e | 51 www.americanjournal.org improvement of the country’s socio-economic status through job creation, and serves as a primary driver for efficient economic growth. literature review historically, the term “cluster” was initially utilized predominantly within the scientific and academic domain. it was in 1990 that professor michael porter introduced the term into economic processes, defining it as “a geographically and sectorally grouped set of enterprises that enhances competitiveness”1, and carried out his foundational research based on this definition. according to michael porter’s research, a cluster is defined as “a geographically proximate group of interconnected companies and institutions in a particular field, linked by commonalities and complementarities, which includes suppliers, service providers, scientific institutions, and related organizations”2. this implies that the system forms a highly specialized production infrastructure by extensively utilizing modern scientific achievements and innovative technologies. the cluster operates based on the deep processing of local raw materials and inherent capabilities, serving as a complex, integrated sector that provides employment for the population, particularly in skilled labor fields. clustering within the agrarian sector began to be adopted starting in the 1990s. this system was initially implemented in developed countries such as the usa, germany, france, and japan. according to a report published in the united states in 1990 on the formation and development stages of the country’s agricultural sector:3 california state, holding the largest market share in the united states for fruit and vegetable production, was where the initial manifestation of clustering began to take shape within fruit and vegetable cultivation. conversely, iowa state achieved high profitability in grain and legume production despite its typically dry climate, leading to the commencement of clustering efforts in the cultivation of these primary grain and legume commodities. similarly, in texas state, large-scale farms specializing primarily in livestock breeding and cotton cultivation began to emerge, and the initial forms of utilizing the cluster system also took shape within these processes. it is evident that the early clustering experiences of these developed countries have significantly influenced the widespread dissemination and subsequent development of this system globally. according to various research findings, clusters currently account for 50 percent of the economies of developed nations worldwide. for example, clusters contribute to 60 percent of the gross domestic product (gdp) of the united states. furthermore, in italy, 43 percent of the industrial labor force is employed within clusters, and over 30 percent of the country's total export volume is attributed to this sector.4 the cluster system commenced its rapid development within the national economy starting in 2018. an examination of the performance indicators reveals that, initially:5 six chemical technology clusters were established on the basis of large manufacturing enterprises, 1 https://economie.ens.psl.eu/img/pdf/porter_1990_-_the_competitive_advantage_of_nations.pdf 2https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20development%20_%20re port_isc%20wp%20version%2010-10-17.pdf 3 https://ers.usda.gov/sites/default/files/_laserfiche/publications/42396/31544_aib770_002.pdf 4 https://imrs.uz/publications/articles-and-abstracts/cluster komiljon qoʻziyev's article 5 https://imrs.uz/publications/articles-and-abstracts/cluster komiljon qoʻziyev's article https://economie.ens.psl.eu/img/pdf/porter_1990_-_the_competitive_advantage_of_nations.pdf https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20development%20_%20report_isc%20wp%20version%2010-10-17.pdf https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20development%20_%20report_isc%20wp%20version%2010-10-17.pdf https://ers.usda.gov/sites/default/files/_laserfiche/publications/42396/31544_aib770_002.pdf https://imrs.uz/publications/articles-and-abstracts/cluster https://imrs.uz/publications/articles-and-abstracts/cluster american journal of business management, economics and banking volume 43 december2025 p a g e | 52 www.americanjournal.org enterprises within the machine-building industry—one of the most crucial sectors of the economy— including manufacturers of passenger vehicles, trucks, buses, and agricultural machinery, also established machinery clusters, looking at the regional breakdown, tashkent region alone accounted for 41 industrial clusters. an electric vehicle (ev) cluster was established for the localization of component and material production, targeting the newly emerging ev manufacturing segment within the machine-building industry. large-scale cluster networks, such as the gas-chemical cluster, were established in the shurtan gas chemical complex. methods this scientific article is aimed at analyzing cluster performance within the economy of uzbekistan. the methodology heavily relied on established analytical techniques, including observation, aggregation, comparison, and contrasting methods (comparative analysis). these methods were utilized to assess the following key economic parameters: the annual growth rates of production, investment, and export indicators. the ratio of export volume to total production volume. the overall share and strategic significance of clusters within the national economy. the analysis process was strictly informed by official governmental documents, statistical reports, and relevant academic literature to ensure the reliability and validity of the findings. results in the economy of uzbekistan, clusters have emerged as a contemporary production model, forming a complex system that integrates the processes of manufacturing, processing, and export into a single cohesive chain. the essence of this system lies in the fact that all stages-from the cultivation of raw materials and their deep processing to the production of finished goods and their delivery to both domestic and international markets-operate in an organically interconnected manner. consequently, clusters not only increase production efficiency but also enhance value addition, create new job opportunities, develop the services segment, and expand export potential. statistical data obtained in recent years demonstrate a significant dynamic in the economic indicators of the clusters. specifically, the volume of production is increasing annually, investment flows are directed towards the modernization of cluster infrastructure, and the export volume serves to enhance competitiveness in international markets. this process demonstrates the strategic significance of clusters in the modernization, diversification, and sustainable growth of uzbekistan's economy. furthermore, clusters are strengthening the stability of the economic system by boosting regional economic activity, promoting the efficient use of local resources, introducing innovative technologies, and expanding cooperation with scientific research institutions. therefore, the study analyzes the key performance indicators of cluster activity—production volume, investment flows, and export results-based on separate tables. in each table, the indicators' growth rates, dynamics, and their economic implications are thoroughly interpreted. this approach enables a clearer demonstration of the clusters' role in the national economy, the assessment of their strengths and weaknesses, the determination of their impact on regional development, and the identification of american journal of business management, economics and banking volume 43 december2025 p a g e | 53 www.americanjournal.org future development prospects. detailed analysis and interpretations based on each table are presented below. table 1. volume of industrial output produced by enterprises within the cluster structure(bln uzs)6 in the national economy, the number of enterprises within the cluster structure reached 509 in 2022, collectively producing 28,679.2 billion uzs worth of industrial output. concurrently, 47.8 billion uzs worth of construction work was executed using the enterprises own funds.7 in 2023, cluster enterprises increased their industrial output to 31,794.5 billion uzs, while the volume of construction work executed amounted to 44.9 billion uzs.8 compared to 2022, the volume of output increased by approximately 10.9 percent in 2023. although the number of enterprises within the cluster structure decreased to 433 in 2024, they produced 36,372.6 billion uzs worth of industrial output during the january-december period.9 the volume of production recorded a further increase of 14.4 percent in 2024 compared to 2023. the acceleration of this growth rate suggests that investment inflows have successfully modernized the production processes within the cluster sector, resulting in improved product quality and demonstrating the sector's continued trajectory of stable growth. table 2. investment volume in fixed assets of cluster enterprises(bln uzs)10 year volume (bln uzs) growth (%) 2022 2 066,5 – 2023 3 584,3 +73,5 2024 3 677,8 +2,6 6 source: author's compilation 7 https://stat.uz/images/miz-press-reliz-uz.pdf 8 https://stat.uz/img/zb.pdf 9 https://stat.uz/img/miz-uz-press-reliz_p28918.pdf 10 source: author's compilation 28 679.2 31 794.5 36 372.6 production volume 2022 2023 2024 https://stat.uz/images/miz-press-reliz-uz.pdf https://stat.uz/img/zb.pdf https://stat.uz/img/miz-uz-press-reliz_p28918.pdf american journal of business management, economics and banking volume 43 december2025 p a g e | 54 www.americanjournal.org despite the cluster system being a relatively new direction in our economy, it is rapidly emerging as one of the key sectors for attracting investment. this sector has quickly established its position in the national economy, yielding significant results in expanding production volume and enhancing export potential. while 2,066.5 billion uzs was attracted to clusters in 2022, this figure surged by 73.5 percent in 2023, reaching 3,584.3 billion uzs. these capital investments quickly demonstrated their effectiveness, as evidenced by a 10.9 percent growth in the volume of products manufactured by cluster enterprises in 2023. furthermore, 3,677.8 billion uzs was directed to the cluster sector during 2024, representing a 2.6 percent increase compared to 2023. this indicator signifies the stabilization of investment flows, with the volume of capital investments being sustained at a high level. concurrently, the yield of these investments is manifesting as an acceleration in production volume, contributing to the enhanced efficiency of clusters within the economy. overall, this process demonstrates that the cluster system is acquiring strategic importance within the national economy, and that both the industrial production infrastructure and export potential are being strengthened through targeted investment flows. table 3. export volume of cluster enterprises (bln uzs) 11 it is well-known in economics that the export of goods, works, and services produced by any country is critically important. export activities improve a country's economic status, raise the living standards of the population, and stand as a fundamental indicator for strengthening the national currency. the quantity of products exported by cluster enterprises can be observed from the data. the volume of exports showed stable growth throughout the 2022–2024 period. specifically, the export volume totaled 5,759.3 billion uzs at the end of 2022, and this figure increased by 6.9 percent in 2023, reaching 6,159.0 billion uzs. this result is assessed as the outcome of investments made and reforms implemented within the sector. furthermore, in 2024, the export volume grew by 21.7 percent, totaling 7,250.9 billion uzs. this indicator confirms that the clusters have quickly transformed into a crucial and indispensable sector of our country’s economy within a short timeframe. furthermore, the increase in export volume demonstrates that clusters are enhancing their competitiveness in international markets and securing a vital position in the national economy's foreign trade balance. 11 muallif tomonidan shakllantirildi eksport 0 2000 4000 6000 8000 2022 2023 2024 5759.3 6159 7250.9 export (bln uzs) american journal of business management, economics and banking volume 43 december2025 p a g e | 55 www.americanjournal.org conclusion the clustering process in the economy of uzbekistan is yielding significant results within a short period. the research findings indicate that clusters are emerging as an integrated complex, unifying production, processing, and export into a single value chain, thereby making a substantial contribution to the stable growth of the national economy. over the 2022–2024 period, the volume of production by cluster enterprises accelerated, rising from 28,679.2 billion uzs to 36,372.6 billion uzs. this growth is primarily attributable to the effective channeling of investment flows and the modernization of the production infrastructure. investment volume sharply increased from 2,066.5 billion uzs in 2022 to 3,584.3 billion uzs in 2023, subsequently stabilizing at 3,677.8 billion uzs in 2024. this trend demonstrates that the capital attracted to the cluster sector is manifesting its yield in terms of production volume and exports. furthermore, the export volume grew by 25.9 percent over two years, reaching 7,250.9 billion uzs in 2024, up from 5,759.3 billion uzs in 2022. this confirms that clusters are increasing their competitiveness in international markets and securing a crucial position in the national economy's foreign trade balance. furthermore, clusters play a vital role not only in expanding production volume but also in creating new job opportunities, developing the services segment, and ensuring overall socio-economic stability. however, certain issues persist, such as high creditor indebtedness, the weakness of the services segment, and the lag effect of investment returns. addressing and resolving these challenges is crucial for enhancing the future efficiency and sustainability of the clusters. overall, clustering is emerging as a strategic direction in the modernization and diversification of the uzbekistan economy. the growth in production volume and exports through clusters, the effective distribution of investment flows, and the strengthening of social stability serve as crucial factors in enhancing the national economy’s competitiveness. therefore, the further development of the cluster system, strengthening the services segment, and ensuring financial sustainability must be a priority objective in uzbekistan's economic policy. references 1. porter, m. e. the competitive advantage of nations. new york: free press, 1990. https://economie.ens.psl.eu/img/pdf/porter_1990__the_competitive_advantage_of_nations.pdf 2. delgado, m., porter, m. e., & stern, s. cluster mapping as a tool for development. institute for strategy and competitiveness, harvard business school, working paper, 2017. https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20devel opment%20_%20report_isc%20wp%20version%2010-10-17.pdf 3. united states department of agriculture (usda). agricultural income and finance outlook. economic research service, washington d.c., 2002. https://ers.usda.gov/sites/default/files/_laserfiche/publications/42396/31544_aib770_002.pdf 4. qo‘ziyev, k. (year).“the cluster system and its role in the economy of uzbekistan” https://imrs.uz/publications/articles-and-abstracts/cluster 30.03.2023. 5. national statistical committee of the republic of uzbekistan. (2025). press releases on industrial production and investment indicators (2022–2024). tashkent.. https://stat.uz/images/miz-press-relizuz.pdf 6. national statistical committee of the republic of uzbekistan. (2025). reports on export indicators (2022–2024). tashkent.https://stat.uz/img/zb.pdf https://economie.ens.psl.eu/img/pdf/porter_1990__the_competitive_advantage_of_nations.pdf https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20development%20_%20report_isc%20wp%20version%2010-10-17.pdf https://www.isc.hbs.edu/documents/pdf/cluster%20mapping%20as%20a%20tool%20for%20development%20_%20report_isc%20wp%20version%2010-10-17.pdf https://ers.usda.gov/sites/default/files/_laserfiche/publications/42396/31544_aib770_002.pdf https://imrs.uz/publications/articles-and-abstracts/cluster https://stat.uz/images/miz-press-reliz-uz.pdf https://stat.uz/images/miz-press-reliz-uz.pdf https://stat.uz/img/zb.pdf american journal of business management, economics and banking volume 43 december2025 p a g e | 56 www.americanjournal.org 7. ministry of higher education, science and innovation of the republic of uzbekistan. (2023). proceedings of the scientific and practical conference on clustering. tashkent. 8. komilova, n. k. (2022). geographical clustering and economic efficiency. in scientific articles collection of tashkent state university of economics. 9. abduraxmanova, g. k. (2023). prospects for the development of clusters in the economy of uzbekistan. economy and education journal, №4 10. ministry of economy and finance of the republic of uzbekistan. (2024). annual report on investment flows and industrial clusters. tashkent. american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 1 www.americanjournal.org improving the regulation and incentive features of personal income taxation ruziev ghanisher usarovich email: ruziyev.ganisher@bk.ru phone: +99890 186-32-85 a b s t r a c t k e y w o r d s this article provides relevant proposals and recommendations for further improving the regulation and incentive mechanisms of personal income taxation in uzbekistan, based on a study of international experience in taxing individual incomes. income tax, social justice, standard of living, minimum consumption expenditure, progressive scale, nontaxable minimum. introduction one of the most important types of taxes in international tax practice is personal income tax, the necessity of which is linked to its economic, social, and political functions. from an economic perspective, the fiscal function of income tax plays a significant role in forming state budget revenues. the social nature of income tax is reflected in its influence on the real incomes of the population through deductions, tax rates, tax benefits, and other mechanisms thereby directly affecting the standard of living. from a socio-political point of view, this tax is essential for the effective implementation of the state’s social policy and plays an important role in labor migration. at the same time, it is crucial to enhance the effectiveness of tasks and measures set out in national strategies and programs to combat poverty, reduce the tax burden on low-income segments of the population, and address income inequality among social strata, taking into account average income levels. moreover, there are certain issues related to tax calculation, the application of tax deductions, and benefit mechanisms. therefore, it is especially relevant to explore ways to improve the personal income taxation system, including studying international practices to identify tax regulation approaches and methods applicable within the economic context of uzbekistan. literature review one of the scholars who has conducted scientific research on the system of personal income taxation and its improvement is e.n. evstigneev, who emphasized: “income tax is an economic tool through which the state, on the one hand, influences the real income levels of the population, and on the other hand, forms the revenue part of the budget.” american journal of business management, economics and banking volume 38 july2025 p a g e | 2 www.americanjournal.org according to i.v. gorsky, personal income tax is not only the most important among taxes levied on the population but also lies at the core of any modern tax system. this is due not only to the fact that all social relations in one way or another affect the individual or employee but also because the weight of personal income tax largely determines the level of other taxes. kuznetsov argues that “in the process of reforming the personal income taxation system, the principle of fairness is often violated, the tools for determining economically justified levels of tax benefits are not fully utilized, and the socially oriented role of taxes is underestimated, despite the fact that in developed foreign countries, this role occupies a leading position in their national budgets.” the prime minister of the russian federation, m. mishustin, while outlining the main goals of tax reform in the country, emphasized that it should primarily contribute to reducing inequality. he pointed out that the tax system should not only ensure the flow of resources to solve national and regional problems, but also require fair distribution of the tax burden. tax reform must also take into account the income levels of citizens and companies as part of socio-economic development. in the article “taxes and the minimum amount for living in need” by alfred g. buchler, the concept of a non-taxable minimum is explored. the author stresses that the provided minimum (non-taxable amount) must be sufficient for individuals to meet their basic living needs. he also emphasizes that taxes should serve not to worsen living conditions but to contribute to income growth. research methodology this research was conducted with the aim of further improving the system of personal income taxation. based on a study of international practices in the taxation of individual incomes, relevant tasks were developed to enhance the regulatory and incentive mechanisms of personal income taxation in uzbekistan. during the research process, scientific and methodological approaches such as the study, analysis, comparison, and classification of practical materials were applied. as a result, conclusions were drawn and proposals were developed, which include specific measures for improving the regulation and incentive features of personal income taxation. analysis and discussion of results one of the most important types of taxes in international tax practice is the personal income tax, the necessity of which is connected to its economic, social, and political functions. from an economic perspective, the fiscal function of income tax plays a crucial role in forming state budget revenues. its social nature is manifested in its impact on individuals’ real incomes through deductions, tax rates, tax benefits, and other mechanisms, thereby directly influencing the standard of living. from a sociopolitical standpoint, personal income tax is vital for the effective implementation of social policies and plays a significant role in labor migration. from the position of social justice, reforming income taxation to enhance the effectiveness of strategies and programs aimed at combating poverty, and reducing the tax burden on low-income groups — considering income inequality and average earnings becomes a key issue. it is well known that the state, through taxation, regulates the income and living standards of its citizens. the extent of this impact determines the level of income legalization, interest in private entrepreneurship, and the forms of property preservation. american journal of business management, economics and banking volume 38 july2025 p a g e | 3 www.americanjournal.org global experience shows that high levels of tax burden and government interference lead to increased tendencies to conceal income, reduce motivation to earn, and vice versa lower tax burdens encourage transparency and economic activity. in many countries, personal income taxation is based on either proportional or progressive tax rates. under a proportional taxation system, income tax is relatively low and levied at a flat rate. this system helps draw individuals out of the informal economy and expand the budget's revenue base. however, it does not contribute to equal wealth distribution and fails to reduce income disparities. as a result, it negatively affects lower-income groups and benefits higher-income earners, exacerbating inequality and potentially leading to social instability, security threats, and hindering economic growth. therefore, over time, many countries have transitioned to a progressive taxation scale. the progressive approach to taxation helps reduce the gini coefficient, lowering the level of social stratification. for example, the gini coefficients are: 45.0 in the usa, 42.8 in israel, 37.9 in japan, 32.4 in the uk, 32.1 in canada, and 27.0 in germany. in these countries, income tax performs not only a fiscal function but also regulatory and social functions. through higher tax rates on higher incomes, the state redistributes wealth to support lower-income groups. however, high progressive taxation may lead to increased tax evasion, shift the burden to the middle class, and reduce work motivation. considering this, many countries have implemented reforms allowing social expenses to be deducted from gross income. tax benefits such as child allowances are widely used to support families with education, healthcare, and other socially significant expenses. in some countries, families with young children, the elderly, and people with disabilities are eligible for income tax mechanisms that reduce taxable income. these policies aim to improve family nutrition and health by lowering their tax burden. in various countries, deductions from the income tax base are applied for the following socially significant expenses: social and other insurance premiums paid from wages; expenditures on essential goods and services (considering family status, presence of children, etc.); medical services for specific groups or professions (e.g., diagnostics, dental care, prosthetics, certain surgeries); purchase of special equipment and accessories for disabled individuals, pensioners, and the elderly; part of housing purchase or rental expenses; part of utility bill payments; expenses for children under 16 (e.g., preschool fees, paid courses, sports sections, extracurricular activities, etc.). these expenses are reimbursed either at the source of income taxation or during annual income and expense declarations. in developed countries, incomes below the minimum subsistence level are not taxed. a non-taxable minimum exists to reduce tax liabilities for individuals earning only enough to cover basic living expenses. this benefit is generally unavailable to high-income earners. american journal of business management, economics and banking volume 38 july2025 p a g e | 4 www.americanjournal.org table 1. non-taxable minimum income thresholds in developed countries country non-taxable annual income taxable annual income range tax rates australia up to $4,600 $4,600 to $28,800 9% above $140,000 30.3% to 44.9% austria up to $12,500 $12,500 to $28,500 36.5% above $58,000 up to 50% brazil up to $5,300 $5,300 to $10,500 15% above $10,500 up to 27.5% united kingdom up to $15,500 $15,500 to $49,000 20% above $231,000 45% germany up to $9,000 $9,000 to $11,500 2.56% above $285,000 up to 45% drawing from international experience, it can be concluded that taxing high-income groups at higher rates allows governments to redistribute income toward lower-income segments of the population. accordingly, it is advisable for uzbekistan to transition toward a progressive income tax system, introduce a non-taxable minimum, and implement reforms allowing deductions of expenses related to education, medical services, health insurance, housing (purchase or rent), and utilities from total income. these reforms would enhance the effectiveness of the country's social policy. in this regard, considering the family's total income as the object of taxation is a logical step toward fulfilling the social function of income tax. this would allow for the inclusion of expenses associated with dependents, minors, and elderly parents. utilizing a transparent mechanism for deductions will strengthen the targeted orientation of state social policy, increase public trust in government actions, and expand the population’s access to universal human values. returning a portion of collected taxes in the form of quality public services will reduce informal economic activities (including receiving wages "in envelopes"), increase both household and national budget revenues, help alleviate poverty, and raise the overall standard of living. conclusion based on the above analysis, conclusions, and a generalization of foreign experiences, the following recommendations are proposed to further improve the regulatory and incentivizing features of the income taxation system in uzbekistan: reform the income taxation system in uzbekistan by taking into account the country’s specific characteristics—such as national mentality, sources of income, income inequality across social strata, family size and income, average earnings, and standard of living while applying best practices from other countries. introduce the concept of a “non-taxable minimum” into tax legislation. this should be defined based on each household’s annual minimum expenditure level (according to current data, the minimum consumption expenditure per capita in 2025 is 669,000 uzs per month). transition to a two-tier progressive scale by introducing the non-taxable minimum and thereby reform the personal income taxation system. american journal of business management, economics and banking volume 38 july2025 p a g e | 5 www.americanjournal.org revise the system of tax benefits, deductions, and exemptions. for example, deductions under income tax should be linked to the basic calculation unit rather than fixed amounts. in addition, in order to enhance the efficiency of personal income taxation and expand social support for the population, it is recommended to introduce a deduction mechanism for specific essential expenses, including: medical diagnostics, dental services, and certain other healthcare-related services, as well as selected utility expenses for low-income individuals. references 1.alfred g. buehler «taxation and the minimum of subsistence» source: the american economic review, vol. 23, no. 2 (jun., 1933), pp. 234-244. stable url: http://www.jstor.org/stable/253 2.евстигнеев е.н. налоги и налогообложение: учеб. пособие. м.: инфра-м, 2001. с. 214. 3. горский и.в. налоги в рыночной экономике. м.: анкил, 1992. с. 52 4. ruziyev g.u. issues of improving the system of taxing income of individuals in the republic of uzbekistan. international journal of research in social sciences номли электрон журналида (vol. 13 issue 02, february 2023, issn: 2249-2496 impact factor: 7.081) 5.https://visasam.ru/emigration/vybor/nalogi-v-mire.html 6.https://stat.uz/uz/matbuot-markazi/qo-mita-yangiliklar/59855-minimal-iste-mol-xarajatlari-qiymatito-g-risida-3. http://www.jstor.org/stable/253 american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 24 www.americanjournal.org scientific-theoretical approaches to clarifying international transformation processes in the activities of commercial banks khashimov ogabek nizamjon ugli trustbank ” jsc yakkasaray banking services office leader specialist a b s t r a c t k e y w o r d s the article scientifically analyzes the process of revolutionary transformation of the organization and expansion of retail and corporate banking services by commercial banks to a digital business model. the study examines the initiative of the state regulator of the british banking system in 2015 to use open api standards, technological innovations in the activities of commercial banks, mobile banking, “super-app” solutions, p2p payments, and the use of big data technologies. it also deeply studies the historical stages of the activities of commercial banks, the three successive stages of digitalization the development of customer relationships through digital channels, the adaptation of technological infrastructure, and the implementation of strategic changes. recommendations were developed for the modernization of the banking system in uzbekistan, the implementation of international transformation processes, the widespread use of modern mobile and digital technologies, the diversification of banking services, and increasing security. this research creates a theoretical and practical basis for adapting banking activities to the digital ecosystem, developing services focused on customer needs, and ensuring sustainable financial growth. commercial banks, digital transformation, digital business model, open api, mobile banking, super-app, p2p payments, big data, banking ecosystems, innovative financial technologies, evolution of banking services. introduction the revolutionary transformation of commercial banks to a digital business model for organizing and expanding retail and corporate banking services to customers took place in 2015 with the initiative of the state regulator of the british banking system ( open banking working group 8 ) to switch to open api standards. this practice allowed commercial banks to use databases of other organizations, taking into account the confidentiality requirements of customer information, improve banking services and american journal of business management, economics and banking volume 40 september2025 p a g e | 25 www.americanjournal.org organize services in line with the changing needs and requirements of customers 1. it should be noted that, along with the mandatory requirement for the use of api standards, 64 percent of banks from 85 countries are confident that new technologies will fundamentally change the banking business in the next 5 years. according to the opinion of banking experts in our country (81 percent), the use of these technologies is of great importance for banking activities. fundamental changes in the economic activities of the bank, the use of new technologies, new services and digital transformation processes are significantly affecting the banking services sector. digitalization is further increasing the importance of applying new priority formats for the development of banking, credit and financial business. using the latest technologies, it will be possible to optimize repetitive and cross-cutting functions in the activities of commercial banks, reduce unnecessary costs and maximize profits, and in turn create conditions for customers with better and more advantageous access options than before. review of used literature banking services digital business to the model transfer, especially open api standards based on develop process last in years world finance in the market new step starting england in 2015 bank system state regulator by previously open banking initiative launched this in the direction important stage is commercial to banks customer information protection did without other organizations from the bases also use opportunity created [1]. this digital approach bank services improvement and customers variable requirements in adaptation noticeable results is giving. banks digital to ecosystems transition, especially “ super-apps” and p2p payments new of services current to be market architecture and competition environment fundamentally is changing russian scientists also separately emphasizing for example, ea tarkhanova and partners bank ecosystems essence , types and in russia them order of the place modern approaches in detail [2]. also , vs tereshenko and od shumakova in research of banks business models transformation to do directions and them state by of support relevance showing passed [3]. banking services deep digitization in the process customer information security , credit risks management , in particular the loan refusal done applications analysis to do mechanisms improvement also important importance has . d.dj . hand own in the study credit in operations refusal done applications analysis to do theoretical basics and practical methods illuminates [4]. this approach commerce banks in the activity risks determination and evaluation further thorough on the road to put opportunity gives . this with together , nv shcherbakova russia bank in the sector digital of technologies features and they with related risks surrounding analysis so , bank services diversification in doing technological solutions with one in line information safety also important factor that it is emphasizes [5]. in general when receiving , foreign literature of banks digital transformation following main in directions illuminating gives : • digital business model and open api: banking services to the customer direction and information exchange liberalization [1]. • banking ecosystems and new business models : digital through partnerships , superapps and p2p payments services expansion [2; 3]. 1dmitrieva g. s. digital technology v banking sector economy. izvestia sankt-peterburgskogo gosudarstvennogo ekonomicheskogo universiteta. 2020;(1):49–53. american journal of business management, economics and banking volume 40 september2025 p a g e | 26 www.americanjournal.org • risks management and information security : credit risk analysis to do and cybersecurity measures strengthening [4; 5]. this sources commerce banks activity digital transformation in doing theoretical basis created in the banking system of uzbekistan digital banking services development practical mechanisms working to go out service does . research methodology research commerce banks activity digital business to the model of transfer theoretical and practical the basics to study focused on the goal achieve for following main approach and methods used : • systematic and complex approach – banking services historical development , digital transformation stages and modern technologies impact each other in connection analysis was done . • comparative and dynamic analysis – usa , great britain britain , russia and banking systems of uzbekistan according to statistic information based on banks number , branch networks , digital services and customer in needs changes compared . • graphic and table methods – banks profitability , liquidity , p2p payments , mobile banking , etc. main indicators graphic and table in appearance was evaluated . • expert assessment – in the banking sector local and foreign experts thoughts and progressive international experience analysis was done . information sources as national and international financial reports , open banking initiative according to open api standards about statistic data , as well as sed y x ia, tarkhanova ea, tereshenko vs, hand d.dj ., shcherbakova nv of scientists scientific works [1–5] extensive was used . as a result of banks digital transformation effective management , risks reduce and to the customer directed services quality to increase aimed at scientific and practical conclusions working it was released . analysis and discussion of results currently, the need for remote banking services is growing day by day. 45 percent of the population of our country uses mobile banking, choosing modern mobile devices as the most optimal solution for carrying out banking services and banking operations. in such conditions, the development of digital technologies will undoubtedly lead to significant changes in the nature and scope of risks faced by commercial banks. all this means that commercial banks that want to develop need to apply new business models, timely digitization, a thorough understanding of international transformation processes and monitoring their trends, and, if necessary, implement them. over the past historical period, we can witness that changes in the direction of banking management and monetary policy have occurred simultaneously with the development of banking activities (table 1.1.1). the first stage ( until the end of the 14th century). it was characterized by the introduction of state measures to account for money accepted for storage, as well as to limit interest rates on loans. the second stage (from the 15th century to the first half of the 17th century) is characterized by the deepening of the regulation of the activities of commercial banks, the development of measures to maintain records of money received for safekeeping, limit interest rates on loans, and restrict the circulation of bills of exchange. american journal of business management, economics and banking volume 40 september2025 p a g e | 27 www.americanjournal.org in the third stage (from the end of the 18th century to the 1930s), the activities of commercial banks were fully regulated. in the fourth stage (from the 1930s to the 1980s), the activities of commercial banks this is explained by the increase in effective regulatory measures and strengthening of sanctions, as well as the development of requirements for independent bank audits. today's international rating agencies act as global banking regulators. in the fifth stage (from the 1980s to the present day), the active introduction of modern technologies, telecommunications, and later digital technologies into the activities of commercial banks led to significant changes in the quality and price of banking operations and banking services, which had a significant impact on the liberalization of the activities of commercial banks and their adaptation to customer demand (table 1). table 1 periodic stages of transformation of commercial banking activities2 stages of transformation of commercial banks characteristics of periodic stages 1950s 1970s traditional banking model the efficiency of banking activities is focused on the organization and presence of networks in a convenient and wide geographical area. there has been a rapid growth of foreign branches and representative offices of commercial banks. in this regard, remote banking services (from the perspective of effective use of radio, telephone, television) are considered important, which, as a rule, is interpreted as the popularization of banking services 1980s — 1990s the transition of banks to a business model based on technical and technological progress commercial banks have prioritized the further expansion of the technical aspects of their activities through the widespread use of communication tools and the formation of the initial elements of remote banking services via the internet in remote branch management. 1990s — 2000s cross-border interbank communications as commercial banks expand their activities and reach beyond national financial markets, there is a need to effectively coordinate the economic interests of various stakeholders. in particular, the idea of collecting personal data about customers and competitors has led to the initial steps towards creating a digital customer profile. 2000 2010 harmonization and cooperation between banking and non-banking organizations the emphasis is on increasing healthy competitiveness in the activities of commercial banks, as well as developing a portfolio of mutually functional and diverse banking products and services, and increasingly attracting non-financial enterprises based on the principles of partnership and technical and technological cooperation. in particular, emphasis is placed on the creation of venture funds to support financial programs, financial technologies, and banking innovations. digital banking businesses and ecosystems 2011y.v the rapid growth and widespread adoption of digital technologies has been reflected in the partnership relations of bank management and the growth of many independent banking and non-banking institutions that are not in competition with each other. by moving to business models in the form of market ecosystems, organizations and digital business entities are forming in various regions, focused on producing a package of banking products and services through internet networks. the proposed classification made it possible to justify the need for effective management and regulation of transformation processes in commercial banks at the current stage in an institutional direction. the process of digitizing the activities of commercial banks includes three consecutive stages: the first stage , new ways of building relationships with customers, creating modern banking products and services that allow for their broad involvement; 2 systematized by the author american journal of business management, economics and banking volume 40 september2025 p a g e | 28 www.americanjournal.org second stage, adaptation of technological infrastructure; third stage, commercial it involves strategic changes that will allow banks to strategically position themselves in the digital environment (figure 1.1.1). the first stage involved the development of new digital channels for interaction with customers in response to changing demands and preferences for financial services, as well as the creation of modern financial products that would allow banks to reposition themselves in a competitive environment. in recent years, along with the modernization of online banking platforms, the main efforts of banks have been focused on developing customer relationships through mobile devices. this stage involved the creation of new banking products and services, digital channels for their sale and promotion, and significant changes to the technological infrastructure, requiring integration with existing systems. the second stage of digital transformation of commercial banks involves changing the technological platform, that is, transforming it into a modular and flexible infrastructure that allows it to integrate modern new financial technologies, as well as revitalizing the creation of new banking services and products. it is important to note that technological solutions such as biometric identification of customers, electronic document circulation, increased transaction security, simplified user interface, remote banking services and expanding their use are being actively used. another distinctive feature of digitalization at this stage is that commercial banks are focused on digitalizing business processes not only in the back office, but also in the front office. for example, banks are using complex analytical algorithms based on artificial intelligence to improve the assessment of a client's creditworthiness, form customized orders for banking products for clients, or provide personalized services. the third stage of digital transformation has led to extensive organizational changes aimed at reducing the decision-making process by commercial banks and simplifying the structural and operational models in accordance with the principle of customer-oriented banking strategy. these changes have led to some resistance not only to the banking organization, but also, in most cases, to the reluctance of employees to accept innovations, since the introduction of such innovations implies fundamental changes in the organizational structure of commercial banks. one of the main results expected from the transformation of commercial banks with the help of international financial institutions is to reduce the state's share in a number of commercial banks, to introduce international experience into their activities, while attracting strategic investors with sufficient experience, knowledge and reputation in banking. in addition, it is planned to consistently eliminate the administrative burden by freeing credit institutions from performing functions that are not typical for them, as well as from excessive burdens, to widely introduce modern information and communication technologies, to create the necessary conditions for automating business processes of commercial banks and expanding the types of remote banking services. research aimed at the widespread application of international transformation processes to the activities of commercial banks is being studied by foreign and domestic scientists. in particular, in the studies of foreign scientists g. markowitz (harry max markowitz), k. cohen (kj cohen), f. hammer (fs hammer), and w. sharp (william forsyth sharpe), the activities of banks were considered within the framework of portfolio theory, and "...a bank, taking into account the possible level of risk , should form such a ratio of assets that, while ensuring compliance with a certain liquidity coefficient, should receive maximum income 3. " 3 bankovskaya sfera: mechanism of information -financial intermediatsii : monograph / pod nauchnoy ed. prof. yu.v. rozhkova. — khabarovsk: rits xgaep, 2013. — 320 p. american journal of business management, economics and banking volume 40 september2025 p a g e | 29 www.americanjournal.org in our opinion, the institutional approach (theory of the firm) adopted by these scholars, which aims to equate a bank with an enterprise, necessitates a clear definition of the subject of banking activities, and a clear definition of the concepts of "banking operation", "banking service", and "banking product". in our opinion, these are the main reasons why economists have not yet come to a unified approach and consensus on these concepts and the question of what ultimately satisfies customer needs: an operation, a service, or a product. among the significant studies, it is worth noting that international transformation processes by foreign scientists r. amit and s. zott (amit r., zott c) are aimed at " the use of digital technologies that allow for the full implementation of the possibility of remote access to ... products and services."4 in their research, j. parker, van alstine, s. chaudhari drew attention to the fact that “...a fundamental change in the architecture and infrastructure of banking business processes related to the provision of banking services to the client, motivating customers to work on the basis of creating a virtual banking environment, and creating a new banking organization that allows for a high level of customization of banking services based on the wishes of the client” 5is the main aspect of modern business models. today, newly created enterprises, including e-business, have the opportunity to create a new format of business models faster and more efficiently, since they prefer not to master existing economic knowledge and skills, but to establish or move market relations from one technological stage to another along the value chain. the fact that the direction of business organization also creates dependence on certain economic resources is, in our opinion, no exaggeration to say that one of the main factors in the decline in the efficiency of traditional enterprises. the most frequently used words by customers when searching for mobile applications that they need or satisfy them through search engines are bank, online, app, mobile, while the words account, card, business, credit are used when searching for types of services (figure 1). figure 1. traffic used in offering retail banking services 6(in percent) 4 zott , christoph & amit , raphael . (2007). business model design and the performance of entrepreneurial firms. organizational science. 18. 10.1287/orsc.1060.0232. 5 parker , j. , wang alstin , m. , chaudari , s. (2017). revolution platform. kak setevye rynki menyayut ekonomi i kak zastavit ix rabotat na vas. m.: mann, ivanov and ferber . 6 author's development. american journal of business management, economics and banking volume 40 september2025 p a g e | 30 www.americanjournal.org the rapid development of the social payments sector. according to research conducted by forrester 7, a number of changes are taking place in the social payments sector. integrated payment packages offered through the mobile application paypal, venmo, apple cash, square cash app are ensuring that commercial banks become serious competitors in the payments market. however, despite this, operations carried out using bank cards and cash continue to gain priority (figure 1.2.3). by analytics firm pymnts 8, consumers are increasingly choosing contactless cards over mobile wallets. according to the data, one in four us shoppers have purchased primary products online. kredit k artalar debet kartalar naqd pullar paypal apple pay savdo do'konlari k artalari google pay bnpl sovg'ali k artalar qr-kodlar krip tovalyutalar venmo samsung pay cheklar boshqa raqamli k artalar 0 20 40 60 80 100 120 140 160 180 200 192 179.7 52.4 42 28.1 15.3 12.9 5.8 4.5 4.3 4 2.6 2 1.6 1.2 2. average monthly volume of consumer payments by payment method in the united states 9(in billions of us dollars) trend 3. intensification of competition in the p2p transaction segment. in order to create a competitive advantage with fintech companies that develop technologies that facilitate p2p transactions, five major us banks have developed a money transfer platform service called zelle, which has achieved some success in the p2p transaction sector. however, the introduction of additional functionalities (in particular, s2b payments) by paypal, venmo, and cash app block is creating additional problems for banks. introduction of super-app technologies. one of the issues that is being actively studied by the world's leading banks today is the formation of a super-app (collecting the functions necessary for the client in a single interface). the number of cases of this issue in annual reports and business plans increased by 640% in 2019-2021 . the main problem in this area is related to customer demand. banking applications have a complex structural structure, but in most cases, customers only use functions such as checking the balance, making payments, and viewing payment history. therefore, 4-5 apis are used to integrate mobile applications with other platforms. mobile technologies are based on the use of devices such as smartphones, tablets, mobile devices. as a result of the development of mobile technologies, a separate area of banking activity has emerged, namely mobile banking. it has become possible to carry out the main part of customer interactions with 7 prepared based on data from https://www.forrester.com/report/predictions-2022-payments/res176306 . 8 prepared based on information from https://www.pymnts.com/ . 9 prepared based on information from https://www.pymnts.com/topic/retail/ . https://www.forrester.com/report/predictions-2022-payments/res176306 https://www.pymnts.com/ https://www.pymnts.com/topic/retail/ american journal of business management, economics and banking volume 40 september2025 p a g e | 31 www.americanjournal.org the bank via mobile devices. as a rule, the use of mobile technologies in the banking and finance sector is based on special application packages, platforms, and mobile applications. big data. today, banking and non-bank financial institutions are able to integrate into large-scale databases, process and use existing data, study customer behavior, create new consumer habits and categories, and offer them the most suitable products and services. conclusion and suggestions transferred research results this shows that commerce banks activity digital business to the model transfer process global finance market downturn is making . in 2015, the great open banking initiative in britain within from open api standards use according to started experience world banking services on a large scale new quality to the stage take the result is banks customer information protection did without other organizations use of databases , services personalization , p2p payments , superapps , big information technologies (big data) , such as mobile banking innovations wide current to grow to the possibility has it has been . digital transformation step by step done more than three main in the direction manifestation was : first in stages customers with digital channels through new relationship installation ; second in stages bank technological infrastructure modular and flexible to the system rotate ; third in stages and strategic management simplification and decision acceptance to do this process accelerates banking services . further flexible , fast and customer to the needs directed so that banking transactions quality increased . with this together , cybersecurity , data protection to do and risk management issues current importance profession is doing . this from the results come out , following practical offers working output : • banks for – open api, super-app and big data solutions current customer needs deep analysis to make , banking products personalization and service show speed increase ; frontoffice and back office processes complete digitization through operational expenses reduce and cybersecurity strengthen . • state and regulators for – digital banking services supportive legal the base further improvements , p2p payments and remote operations safety guaranteeing standards current to be • uzbekistan in conditions – local in banks hybrid ( digital + traditional ) branch model expansion , mobile banking develop and progressive foreign technologies fast current to , as well as international strategic investors with cooperation strengthen . in general when you get it , commercial banks digital transformation financial services new to the stage take out , customer need more complete satisfy , risks reduce and far term stable development to provide service this will do . conclusion and proposals banking system modernization in doing , especially uzbekistan in conditions , scientific-theoretical basis and practical guide as big importance has. references 1. седых и. а. рынок инновационных финансовых технологий и сервисов, м.: вшэ, центр развития, 2019. 2. тарханова е.а., борисов д.с., тарханова а.в., фрицлер а.в. банковские экосистемы: сущность, типология и современные подходы к регулированию в россии // экономика, american journal of business management, economics and banking volume 40 september2025 p a g e | 32 www.americanjournal.org предпринимательство и право. 2023. – том 13. – № 6. – с. 1877–1888. doi: 10.18334/epp.13.6.117771. 3. терещенко в.с., шумакова о.д. трансформация бизнес-моделей российских банков и направления развития их регулирования // московский экономический журнал. 2021. № 11. 4. hand, d.j. analysis of rejected applications in credit transactions: theory and methods / d.j. hand // handbook of credit scoring / e. maze; edited by e. maze. minsk, 2008. ch. 11. p. 295-314 5. щербакова н. в. цифровые технологии в банковском секторе рф: особенности и сопутствующие угрозы // вестник кемеровского государственного университета. серия: политические, социологические и экономические науки. 2021. т. 6. № 1. с. 136–146. doi: https://doi.org/10.21603/2500-3372-2021-6-1-136-146. american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 33 www.americanjournal.org application procedure of international financial reporting standards in business entities djumanov saitmurod alibekovich phd., dotsent "financial accounting and reporting" department tashkent state university of economics keldibekova munisa student of tashkent state university of economics, faculty of accounting a b s t r a c t k e y w o r d s the main purpose of international standards in financial reporting is to bring the financial information of enterprises in different countries into a comparable, reliable, and transparent form. this article outlines the content of international financial reporting standards (ifrs), the principles of their formation, and the mechanisms of their practical application. in addition, the views of domestic and foreign researchers on the topic are summarized, and relevant recommendations are provided. financial reporting, ifrs (international financial reporting standards), investor confidence, small and medium-sized businesses, financial transparency. introduction in the context of globalization, ensuring that the financial information prepared by business entities complies with international requirements has become a crucial factor in enhancing the transparency of economic processes. the preparation of financial statements based on unified standards across different countries enables stakeholders—such as investors, creditors, auditors, and analysts—to obtain reliable, understandable, and comparable information. from this perspective, the adoption of international financial reporting standards (ifrs) serves not only as a regulatory framework for accounting processes but also as an important mechanism that enhances managerial efficiency, facilitates investment attraction, and strengthens financial transparency. the market-oriented reforms being implemented in the republic of uzbekistan, alongside efforts to improve the openness of the financial system, increase corporate competitiveness, and create favorable conditions for foreign investors, further intensify the need to apply ifrs in practice. implementing unified rules for the recognition and measurement of assets, liabilities, revenues, and expenses in accordance with international standards allows for the formation of a truthful and comprehensive view of a company’s financial position and performance. american journal of business management, economics and banking volume 43 december2025 p a g e | 34 www.americanjournal.org ifrs is a set of established rules that determine how an organization should prepare its financial statements, how it should record economic transactions, and how reporting forms should be structured. these standards guide organizations in presenting financial information clearly, consistently, and in a comparable manner. ifrs helps investors, creditors, and other stakeholders comprehensively and effectively assess an organization’s financial performance at an international level. since these standards are principle-based rather than rigid rule-based, they allow for a broader analytical approach in financial reporting. today, ifrs is widely used in many developed and developing countries and continues to evolve in accordance with modern business processes. the number of companies preparing financial statements based on ifrs in uzbekistan is increasing every year, as improving financial transparency is possible only through the adoption of globally recognized standards. therefore, the use of international documents, modern instruments, and advanced global practices has become one of the urgent priorities of the economic reform agenda. as stated in the "new uzbekistan development strategy": “by the beginning of the 21st century, new trends emerged in the global economy that were not typical of previous stages of human development. the essence of economic processes fundamentally changed. economic conditions became more complex, and new types of relations began to dominate international markets. global competition intensified sharply. in such conditions, ensuring continuous economic modernization and defining clear mechanisms for stable development have become crucial” [2]. in line with these priorities, extensive work is being carried out in uzbekistan to strengthen the economy, develop industrial sectors, and improve the investment climate. the adoption of the presidential decree no. pq-4611 dated 24 february 2020, “on additional measures for transition to international financial reporting standards,” is an important step toward integrating uzbekistan’s economy into the global financial system. undoubtedly, attracting foreign investment requires transparency, standardized financial information, and institutional reforms. from this perspective, the formation of ifrs, their role in the global economy, and the challenges of integrating these standards into national accounting systems require comprehensive scientific research. this article examines these issues from a theoretical, methodological, and applied point of view. literature review the transition to ifrs has been widely studied by both local and foreign researchers. international academic literature reflects diverse theoretical and practical approaches, including the economic, institutional, and methodological aspects of implementing the standards. according to m.m. khudoyqulov, who studied the banking sector of uzbekistan, the adoption of ifrs significantly improves credit portfolio quality, strengthens risk management systems, and positively influences the assessments of international rating agencies, thereby enhancing financial stability [3]. i.n. ismanov emphasizes that ifrs serves as a source of financial information about enterprises, independent of national legislation, organizational structure, or company size, and is intended to unify reporting practices for all types of business entities [4]. s.n. tashnazarov notes that the development of international accounting standards marked a new era of integration in financial reporting. he suggests that after the introduction of double-entry accounting in 1494 and international standards in 1973, global harmonization of financial reporting will be fully achieved by the 2030s [5]. american journal of business management, economics and banking volume 43 december2025 p a g e | 35 www.americanjournal.org the literature analysis shows that the successful adoption of ifrs requires an integrated and systematic approach. it is also important to implement these standards gradually, taking into account the specific features of national economic systems. 1-table the process of applying ifrs in business entities stage description outcome 1. preparation stage training employees, analyzing existing accounting policies, aligning internal procedures with ifrs requirements necessary knowledge and documentation for ifrs transition are established 2. methodological stage reclassifying assets and liabilities, determining appropriate measurement bases (fair value, amortized cost, etc.), updating accounting registers the accounting system is adapted to international standards 3. practical implementation recognition, measurement, consolidation, depreciation, impairment, and revaluation according to ifrs accounting processes are conducted fully in compliance with ifrs 4. financial reporting preparing ifrs-based financial statements: balance sheet, income statement, cash flow statement, statement of changes in equity, notes financial statements fully comply with international reporting standards 5. audit and monitoring conducting internal and external audits, assessing ifrs compliance, correcting deficiencies reliability and transparency of financial statements are ensured ifrs helps improve the quality of financial reporting, increases investor confidence, and facilitates access to global financial markets. empirical studies show that companies applying ifrs improve their reporting quality by 30–35%, which leads to a 25–30% increase in investor trust. the introduction of unified standards also strengthens internal controls, improves employee efficiency, and reduces administrative costs. in uzbekistan, transitioning to ifrs also contributes to strengthening financial transparency, enhancing financial market liquidity, and improving institutional reforms. for example, ifrs-based reports improve credit portfolio quality in the banking sector and strengthen risk management. in the public sector, adopting these standards increases transparency, accountability, and supports better evaluation by international rating agencies. however, several challenges remain in the process of adopting ifrs in uzbekistan: shortage of qualified specialists; language barriers in understanding ifrs terminology; high cost of it and technological solutions; difficulties for small enterprises in adapting complex standards. to address these issues, it is crucial to adapt ifrs to local conditions, simplify reporting requirements for smes, and strengthen institutional and educational reforms. ultimately, the transition to ifrs enhances transparency, accountability, and credibility, contributing to deeper integration of uzbekistan into the global economy and improving the country’s investment climate. conclusion as the analysis shows, adopting ifrs holds significant importance for financial system development, corporate governance improvement, and economic growth in uzbekistan. the main purpose of ifrs american journal of business management, economics and banking volume 43 december2025 p a g e | 36 www.americanjournal.org is to make financial information comparable, reliable, and transparent at the international level. the research results indicate that transitioning to ifrs enhances financial reporting quality, strengthens internal control systems, and increases the efficiency of resource utilization. moreover, the adoption of ifrs increases investor confidence, facilitates foreign investment inflows, and supports the integration of domestic companies into global capital markets. this strengthens the competitive position of uzbekistan’s economy. to ensure the effective implementation of ifrs, it is essential to focus on training qualified specialists, localizing standards, addressing language challenges, and improving technological infrastructure. addressing these factors will gradually expand the adoption of ifrs across all sectors, thereby strengthening national economic competitiveness and global market integration. in conclusion, adopting ifrs is not only a financial reporting reform but also a strategic tool for enhancing transparency, strengthening investment attractiveness, and ensuring sustainable economic development. references 1. presidential decree of the republic of uzbekistan pq-4611, “on additional measures for transition to ifrs,” february 24, 2020. 2. mirziyoyev sh.m. new uzbekistan development strategy. tashkent: uzbekistan, 2022. 3. khudoyqulov m.m. “the impact of ifrs on financial stability in the banking sector of uzbekistan.” bank and finance journal, 2022. pp. 30–44. 4. ismanov i.n. “the necessity of transforming the accounting system into ifrs.” economics and finance, 2017.pp. 38–44. 5. tashnazarov s.n. international financial reporting standards. tashkent: “iqtisod va moliya. 2019. american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 21 www.americanjournal.org theoretical foundations of economic growth research (on the example of namangan region) r.m.usmanova associate professor alfraganus university, phd in economics a b s t r a c t k e y w o r d s economic growth represents one of the key indicators of a country's development and plays an important role in strengthening economic stability, improving the quality of life, and addressing urgent social challenges. regional economies (using the namangan region as an example) are complex, multi-component systems influenced by both internal (social, economic, and cultural) and external (global and national) factors. modern processes of globalization, digitalization, and structural economic transformation enhance the significance of the regional level within the national development system. regional economies are becoming not only an object of state policy but also an independent source of economic growth, innovation, and social stability. under these conditions, special attention is paid to studying the factors determining sustainable regional development and to forming effective mechanisms for managing these processes. the namangan region occupies one of the key positions in the socioeconomic structure of the republic of uzbekistan. the region is characterized by high agricultural potential, a developing industrial sector, active entrepreneurship, and growing investment attractiveness. at the same time, structural imbalances remain, along with the need to increase labor productivity and introduce innovative technologies. studying the trends and specific features of the region’s economic growth makes it possible to identify priority directions of regional policy and to ensure balanced territorial development. economic growth, regional demand and supply factors, gdp, investments, human capital, agriculture, light industry. introduction economic growth is a central element of the economic policy of any state, as it determines the country’s capacity to ensure sustainable development, social stability, and an improved standard of living for its population. its importance increases significantly in the context of intensifying global competition, instability of world markets, and the acceleration of technological transformation. in the modern world, national economic growth cannot be considered in isolation from regional processes, since regions form the foundation of productive potential, provide employment, and create the prerequisites for balanced national development. american journal of business management, economics and banking volume 42 november2025 p a g e | 22 www.americanjournal.org regional economic growth reflects the efficiency of using available natural, labor, and investment resources, as well as the degree of implementation of innovations and digital technologies in economic activities. it is characterized not only by an increase in production volumes but also by changes in production structure, the growth of competitiveness among regional enterprises, infrastructure development, and the improvement of investment attractiveness. in this regard, research aimed at identifying the factors that determine the pace and quality of economic growth in specific regions acquires particular importance. namangan region represents one of the most dynamically developing regions of the republic of uzbekistan and possesses significant potential for further growth. its geographical location, favorable natural and climatic conditions, high availability of labor resources, and entrepreneurial activity of the population create the foundations for sustainable socio-economic development. in recent years, largescale investment projects have been implemented in the region, aimed at developing industry, agriculture, transportation, and social infrastructure. at the same time, certain problems remain — sectoral imbalances in the economy, insufficient diversification of production, limited innovation activity, and the need to improve workforce qualifications. the relevance of studying the theoretical foundations of economic growth in the namangan region is determined by the need for a scientific understanding of the processes occurring within the regional economy and for identifying effective tools to stimulate growth. studying these processes makes it possible to define strategic directions of regional policy aimed at building a competitive economy focused on innovation, export orientation, and the rational use of natural resources. thus, the study of economic growth at the regional level, particularly in the namangan region, has not only theoretical but also practical significance. its results can serve as a scientific basis for improving mechanisms of state regulation, developing socio-economic programs, and implementing strategies that ensure sustainable growth and enhance the quality of life of the region’s population. literature review economic growth has remained one of the central topics of economic theory for many decades. a wide range of approaches explain the nature, sources, and mechanisms of growth, as well as define the role of the state, the private sector, and innovation in this process. theoretical concepts can be conventionally divided into classical, neoclassical, and modern (innovative and institutional) models, each interpreting in its own way the factors influencing the dynamics of national and regional economies. 1. classical theories of economic growth. the founders of growth analysis are considered to be representatives of classical political economy — a. smith, d. ricardo, and t. malthus. in their works, growth was viewed as a result of capital accumulation, production expansion, and the improvement of the division of labor. a. smith emphasized that the “invisible hand of the market” contributes to the efficient allocation of resources and the growth of national wealth. d. ricardo associated the long-term rate of growth with the limitation of natural resources and the law of diminishing returns. american journal of business management, economics and banking volume 42 november2025 p a g e | 23 www.americanjournal.org 2. neoclassical growth models in the second half of the 20th century, neoclassical models were developed with the goal of formalizing the factors of economic growth. the most well-known is the r. solow model (1956), according to which growth is determined by three key elements — labor, capital, and technological progress. in this model, technological innovations are treated as an external (exogenous) factor that determines the longterm dynamics of gdp. despite its limitations, the neoclassical theory had a significant influence on the formation of modern macroeconomic policy. 3. endogenous and institutional approaches in the 1980s and 1990s, endogenous growth theories (p. romer, r. lucas) emerged, viewing technological progress as an internal outcome of investment, educational, and innovative activity. in these models, human capital, knowledge, and technology are the main sources of sustainable growth. at the same time, the institutional approach was developing, emphasizing the importance of legal, political, and cultural institutions that ensure the efficiency of market mechanisms. 4. the regional aspect of economic growth modern research places special emphasis on the spatial dimension of growth. regional economic growth is viewed as the result of the interaction of local resources, infrastructure, the entrepreneurial environment, and government regulation. in the context of the namangan region, this approach makes it possible to take into account the specifics of the regional economic structure, the level of small business development, innovation activity, and the efficiency of labor potential utilization. thus, theoretical approaches to the study of economic growth demonstrate an evolution of thought — from an emphasis on capital accumulation to the recognition of the decisive role of human, innovative, and institutional factors. applying these theoretical principles to the analysis of the namangan region allows for a comprehensive understanding of the mechanisms of regional development and for identifying directions to enhance its efficiency. fundamental foundations of the theory of economic growth the fundamental foundations of the theory of economic growth were laid by the austrian economist joseph schumpeter in the early 20th century. he was among the first scholars to distinguish between the concepts of growth and development. in his famous work “the theory of economic development” (1911), schumpeter viewed growth as a quantitative increase in the production and consumption of homogeneous goods and services. development, on the other hand, he associated with qualitative changes brought about by the introduction of innovations — new products, technologies, and methods of production organization. according to schumpeter, it is preciselyinnovationandentrepreneurial activity that serve as the key driving forces of economic progress. schumpeter’s ideas formed the basis of the modern endogenous growth theory, later developed by economists such as philippe aghion (author of the schumpeterian growth model), paul romer, robert solow, william nordhaus, and others. significant contributions were also made by hirofumi uzawa, frank ramsey, paul samuelson, gary becker, daron acemoglu, andoded galor. their research demonstrated that economic growth depends not only on the accumulation of capital and resources but also on the level of education, scientific and technological progress, institutional quality, and the social structure of society. american journal of business management, economics and banking volume 42 november2025 p a g e | 24 www.americanjournal.org american economists campbell mcconnelland stanley brue identified six key factors that determine the sustainability and scale of economic growth: 1. the availability and quality of natural resources, which determine the economy’s ability to produce goods. 2. labor resources — the size, skills, and productivity of the workforce directly affect the volume of output. 3. physical capital, which includes production capacities, equipment, and infrastructure. 4. technology, ensuring more efficient production methods. 5. demand, without which the development of production is impossible. 6. efficiency, meaning the optimal utilization of all available resources with minimal costs. research methodology this study employs a comprehensive set of research methods aimed at ensuring a thorough and objective analysis of economic growth at the regional level, particularly in the namangan region. the methodological framework is based on the use of observation, generalization, factor and dynamic comparison, as well aslogical analysis. the observation method made it possible to systematize statistical data on the socio-economic development of the region, identify key trends, and analyze the dynamics of production, investment, employment, and innovation activity. through the generalization method, common patterns and interrelations among various economic indicators were identified, contributing to a holistic understanding of the mechanisms driving regional growth. factor analysis was applied to assess the influence of specific variables — such as investment volume, labor productivity, sectoral structure, and the quality of human resources — on the rate of economic growth. the dynamic comparison methodwas used to examine changes over time, determine the stability of development, and identify the main directions of regional progress. logical analysis facilitated the interpretation of the obtained results, the identification of causal relationships, and the formulation of conclusions of practical significance for improving regional economic policy. collectively, the applied methods ensured a high degree of reliability and scientific validity of the research findings. analysis and results the purpose of this study is to analyze the key factors determining the economic growth of namangan region and to develop strategic directions for enhancing the efficiency of regional development. to achieve this goal, the following tasks were identified: 1. to examine the theoretical foundations and modern approaches to the concept of "economic growth" at the regional level. 2. to analyze the socio-economic indicators of namangan region over recent years. 3. to identify the main internal and external factors affecting the pace and quality of regional economic growth. 4. to evaluate the effectiveness of ongoing regional development programs and investment policies. 5. to develop recommendations to stimulate sustainable economic growth and enhance the competitiveness of the namangan region. american journal of business management, economics and banking volume 42 november2025 p a g e | 25 www.americanjournal.org economic challenges represent significant obstacles to stable and sustainable development, impacting both macroeconomic and social dimensions. modern states face a range of difficulties that require a comprehensive approach and well-considered policy measures. first, high unemployment and underemployment remain pressing issues. structural, frictional, and cyclical unemployment are caused by limited job opportunities, low labor demand, and a mismatch between worker skills and employer requirements. consequences include social instability, increased crime, reduced living standards, and skill degradation over time. addressing this issue requires the stimulation of new job creation, the development of vocational education, and the alignment of workforce training with market demands. second, widespread poverty and slow economic growthcreate a vicious cycle: poverty hinders development, while weak growth limits poverty reduction. this results in human capital degradation, low investment activity, and rising social tensions. solutions include increased investment in social services, tax policy reforms, and the implementation of social protection programs. third, sectoral dependence and unstable growth are characteristic of economies heavily reliant on one or two key sectors, such as agriculture or raw material exports. this structure exposes the region to global price fluctuations and external shocks, resulting in revenue volatility, budget planning challenges, and limited diversification potential. overcoming dependence requires the development of new industries, support for small and medium enterprises, and investment in education and technology. fourth, pandemic impacts and economic disruptions have revealed the vulnerability of regional economies to external crises. covid-19 caused severe crises in tourism, transportation, catering, and retail. mass layoffs, sharp declines in demand, and budget deficits have been common. addressing these challenges necessitates strengthening healthcare systems, expanding digital services, and supporting the most affected sectors. fifth, limited fiscal space reduces the ability of governments to respond quickly to crises, leading to cuts in social programs, increased debt, and slower economic recovery. solutions include improving public spending efficiency, reprioritizing budget allocations, and actively collaborating with international financial institutions. sixth, macroeconomic instability and balance-of-payments deficits lead to currency fluctuations, high inflation, and diminished investor confidence, which undermine economic growth and international trade. stabilization requires measures to control inflation, support exports, and attract investments. economic characteristics of namangan region in 2025, considering 2024 statistics and forecast trends, demonstrate significant potential for socio-economic development. the region has substantial agricultural potential, a developed industrial sector, and an active entrepreneurial environment. key industries include agriculture, food processing, textiles, machinery production, and construction materials. in recent years, both domestic and foreign direct investments have increased, focusing on industrial, transport, and social infrastructure development. namangan region has shown improvements in social services, including better access to healthcare, enhanced educational infrastructure, and rising living standards. nevertheless, structural disparities between economic sectors persist, along with low innovation activity and insufficient production diversification. there is also a need to improve workforce qualifications and implement modern technologies to increase productivity. american journal of business management, economics and banking volume 42 november2025 p a g e | 26 www.americanjournal.org particular attention is given to the investment climate and innovation activities in the region. creating favorable conditions for small and medium enterprises, developing financial institutions, and promoting technological innovation and digitalization can accelerate economic growth and enhance regional competitiveness at both national and international levels. in general, sustainable economic growth in namangan region requires a systemic approach aimed at addressing structural challenges, diversifying the economy, developing human capital, supporting innovation, and implementing effective public governance. such an approach will enhance economic resilience, investment attractiveness, and quality of life, ensuring balanced development within the framework of the national economy. № name oftheregion shareof gdp (%) grp volume (billionsoums) growth rate (%) grp per capita (thousand soums) equivalentin usd growth rate (%) 1 city oftashkent 19,3% 281 147,4 10,4% 91 376,6 $7 223 7,6% 2 tashkentregion 10,1% 146 385,2 6,7% 47 526,1 $3 757 4,7% 3 navoiyregion 8,1% 117 297,8 7,7% 108 108,6 $8 545 5,8% 4 samarkandregion 6,9% 99 866,1 6,9% 23 481,3 $1 856 4,6% 5 ferganaregion 6,3% 91 333,0 6,8% 22 259,5 $1 759 4,6% 6 andijanregion 6,2% 90 522,1 6,6% 26 409,0 $2 087 4,4% 7 kashkadaryaregion 5,5% 80 658,3 6,5% 22 405,1 $1 771 4,2% 8 bukhararegion 4,9% 71 560,4 6,6% 34 729,6 $2 745 4,8% 9 namanganregion 4,7% 68 915,7 7,6% 22 238,7 $1 758 5,3% 10 surkhandaryaregion 3,7% 54 354,1 5,9% 18 670,0 $1 476 3,4% 11 khorezmregion 3,5% 51 261,0 6,4% 25 452,4 $2 012 4,4% 12 republic ofkarakalpakstan 3,1% 45 658,5 6,3% 22 645,8 $1 790 4,9% 13 jizzakhregion 3,0% 43 057,9 5,3% 28 281,0 $2 235 3,1% 14 sirdaryoregion 1,9% 28 003,3 4,5% 30 359,2 $2 400 2,6% macroeconomic analysis: • in 2024, the gross regional product (grp) of namangan region amounted to 68.9 trillion soums, increasing by 7.6% compared to 2023. significant contributions came from the following sectors: agriculture (+4.3%), industry (+8.3%), construction (+12.8%), and services (+8.8%). • industrial production in january–february 2025 reached 4.217 trillion soums, with a physical volume index of 109.1% compared to the same period in 2024. • the region's trade turnover amounted to $221.4 million, including exports of $90.6 million and imports of $130.8 million. • as of early march, the number of registered enterprises in the region reached 24,654, of which 20,448 (82%) belong to small and medium-sized businesses. • in 2024, 681 projects were implemented, creating approximately 21,000 jobs, with exports totaling $702 million; for 2025, plans include attracting $4.2 billion in investments, creating 34,000 jobs, increasing exports to $1 billion, and reducing poverty to 5.3%. american journal of business management, economics and banking volume 42 november2025 p a g e | 27 www.americanjournal.org • the average per capita income in the first quarter of 2025 amounted to 3.97 million soums, the lowest figure among the regions of uzbekistan. in 2024, the annual per capita income was estimated at 16,849 thousand soums. conclusions and suggestion to ensure sustainable and balanced economic growth in namangan region, a comprehensive and systematic strategy is required, aimed at eliminating existing structural constraints and fully utilizing the region’s internal potential. a key focus should be on economic diversification, which will reduce dependence on individual sectors, increase resilience to external economic shocks, and create new sources of income. this involves developing high value-added industries, modernizing the agricultural sector, promoting entrepreneurship, and implementing innovative technologies. creating a favorable investment climate is another critical tool for attracting both domestic and foreign capital. this requires improving the regulatory framework, simplifying administrative procedures, ensuring transparency and protection of investor rights, and implementing modern mechanisms for state support of business. special attention should be given to the development of special economic zones and industrial parks, which can serve as catalysts for industrial production growth and export expansion. human capital development is a critically important factor for sustainable economic progress. enhancing the quality of education, training skilled professionals, implementing programs for professional retraining, and equipping the workforce with modern technological skills will ensure that the region has the human resources required for high-tech and innovative sectors. social policies should also focus on increasing employment, reducing poverty, and expanding access to essential services, including healthcare and education. infrastructure modernization, including transport corridors, energy networks, logistics, and information systems, creates conditions for higher labor productivity, lower costs, and integration of the region into national and international economic processes. efficient use of natural and industrial resources, the adoption of modern management methods, and rational capital allocation will enhance the competitiveness of the regional economy. supporting small and medium-sized enterprises (smes) is one of the most effective ways to stimulate economic activity and employment. this includes simplifying registration and licensing procedures, improving access to financial resources, creating business incubators and startup platforms, and promoting an entrepreneurial culture. developing smes helps form a flexible and resilient economic structure capable of adapting to changing market conditions. a comprehensive approach to implementing these measures will not only boost grp and increase per capita income but also strengthen social stability, reduce sectoral disparities, enhance the region’s investment appeal, and create conditions for long-term sustainable development. thus, strategic management of economic growth in namangan region should be based on the synergy of economic, social, and institutional factors, the integration of innovative and digital technologies, rational use of natural potential, and active engagement of all economic actors. such an approach will lay the foundation for a competitive, innovation-oriented, and socially sustainable regional economy capable of ensuring population welfare and long-term sustainable development. american journal of business management, economics and banking volume 42 november2025 p a g e | 28 www.americanjournal.org references 1. what are the challenges of economic growth? // growth lab. url: https://growthlab.hks.harvard.edu/what-are-challenges-economicgrowth#:~:text=for%20many%20countries%20in%20the,other%20options%20to%20buy%20fr om. 2. namangan region // wikipedia, the free encyclopedia. url: https://en.wikipedia.org/wiki/namangan_region 3. schumpeter, joseph alois. the theory of economic development: an inquiry into profits, capital, credit, interest, and the business cycle / translated from german by v. s. avtonomov et al. — moscow: progress, 1982 4. mcconnell, campbell r.; brue, stanley l.; flynn, sean m. macroeconomics/economics: principles, problems, and policies https://growthlab.hks.harvard.edu/what-are-challenges-economic-growth#:~:text=for%20many%20countries%20in%20the,other%20options%20to%20buy%20from https://growthlab.hks.harvard.edu/what-are-challenges-economic-growth#:~:text=for%20many%20countries%20in%20the,other%20options%20to%20buy%20from https://growthlab.hks.harvard.edu/what-are-challenges-economic-growth#:~:text=for%20many%20countries%20in%20the,other%20options%20to%20buy%20from https://en.wikipedia.org/wiki/namangan_region american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 35 www.americanjournal.org financial literacy begins from a young age rozmetov shohjahon ogli second year student of the academic lyceum of university of world economy and diplomacy in tashkent a b s t r a c t k e y w o r d s this article discusses the importance of developing financial literacy from an early age. it highlights the role of education and family in shaping children’s understanding of money management, saving, budgeting, and responsible spending. the article also emphasizes how early financial education helps young people make informed decisions in adulthood, promotes economic stability, and fosters a sense of responsibility and independence. financial literacy, youth education, money management, saving habits, budgeting, economic awareness, responsibility, independence. introduction in today’s rapidly changing world, financial literacy has become one of the most essential life skills for every individual. the ability to manage money wisely, plan expenses, and make informed financial decisions plays a vital role in achieving personal and social well-being. developing such skills should not begin in adulthood but rather from a young age when habits and values are still being formed. teaching children and teenagers the basics of financial literacy helps them understand the value of money, the importance of saving, and the consequences of careless spending. schools and families play a crucial role in this process by providing real-life examples, practical exercises, and opportunities for financial learning. therefore, fostering financial awareness from an early age is not just about teaching numbers or economic concepts — it is about preparing responsible, independent, and forward-thinking citizens who can successfully navigate modern financial challenges. financial literacy is not an innate skill — it is something that must be learned and developed over time. when children and young people are introduced to financial education early, they are better equipped to make sound financial decisions later in life. understanding how money works, how to budget, and how to set financial goals helps them form responsible habits that lead to long-term stability and success. the family is the first and most influential environment where a child learns about money. parents’ attitudes toward spending, saving, and budgeting directly affect how children perceive financial responsibility. simple actions — such as giving a child a small allowance, encouraging them to save for something they want, or involving them in family budgeting — can teach lifelong lessons about the value of money and self-control. american journal of business management, economics and banking volume 41 october2025 p a g e | 36 www.americanjournal.org educational institutions play a key role in building financial literacy among young people. integrating financial topics into school curricula — such as basic accounting, saving principles, entrepreneurship, and investment — helps students develop analytical thinking and practical financial skills. through games, projects, and simulations, students can learn how real-life financial systems function. today’s youth live in the digital era, where online banking, electronic payments, and virtual currencies are part of daily life. therefore, teaching them about online safety, digital budgeting apps, and the risks of irresponsible online spending is vital. modern tools like financial education apps or online financial games can make learning both fun and effective. one of the most effective ways to teach financial discipline is by encouraging saving. when young people learn to set goals — whether it’s saving for a desired item, education, or future plans — they also develop patience, perseverance, and strategic thinking. such habits promote a long-term mindset, helping them make wiser choices as adults. financial literacy contributes not only to economic well-being but also to personal growth. a financially literate young person is more confident, independent, and capable of managing life’s challenges. they are less likely to fall into debt, more likely to invest in their future, and better equipped to make responsible decisions. financial literacy in youth not only shapes individual behavior but also strengthens the economic foundation of society as a whole. when young people grow up with a clear understanding of how money functions, they become responsible citizens who contribute to economic growth and social stability. early education in this field helps prevent problems such as overspending, debt accumulation, and poor financial planning in adulthood. effective financial education requires not only theoretical knowledge but also practical experience. schools and youth organizations can organize financial workshops, competitions, and simulation games that mimic real-life situations — for example, managing a monthly budget, investing in small projects, or making purchasing decisions. these activities teach young people how to evaluate risks, set priorities, and plan ahead. in many countries, governments and non-profit organizations are introducing special programs aimed at improving youth financial literacy. these programs include public awareness campaigns, online learning platforms, and partnerships with banks to teach the basics of personal finance. encouraging such initiatives helps create a culture where financial education is viewed as an essential part of overall development. the media can have a powerful influence on young people's financial behavior. television programs, podcasts, and social media platforms can be used to share simple and engaging content about financial responsibility, budgeting tips, and saving strategies. creating youth-friendly digital content makes financial education more accessible and appealing. despite growing awareness, many young people still lack basic financial knowledge. this is often due to limited access to educational resources or insufficient focus on financial topics in schools. to overcome these challenges, collaboration between educators, parents, and policymakers is essential. providing training for teachers, distributing free educational materials, and promoting open discussions about money can make financial education more effective. a financially literate generation is better prepared to face economic uncertainties and make thoughtful life choices. such individuals are more likely to save for their future, invest wisely, and avoid financial american journal of business management, economics and banking volume 41 october2025 p a g e | 37 www.americanjournal.org stress. ultimately, early financial education not only benefits individuals but also leads to a more stable, responsible, and prosperous society. conclusion financial literacy is a fundamental life skill that should be developed from early childhood. teaching young people how to manage money, save, and make informed financial decisions helps them build a secure and independent future. when financial education starts at a young age, it forms responsible habits that influence all areas of life — from personal budgeting to long-term career and investment choices. families, schools, and communities must work together to promote financial awareness among youth. parents serve as the first teachers by demonstrating good money management practices, while schools provide structured knowledge and practical skills. governments and social organizations, in turn, can support these efforts through educational programs, campaigns, and digital learning resources. in conclusion, financial literacy that begins in youth not only benefits individuals but also contributes to the development of a stable and prosperous society. a generation that understands the value of money, practices smart spending, and plans for the future will be better prepared to face financial challenges and ensure sustainable economic growth. references 1.consumer. financial protection bureau (cfpb). 2015. financial well-being: the goal of financial education. https://www.consumerfinance.gov/data-research/research-reports/financial-well-being/ . 2. lusardi, a., & mitchell, o. s. (2017). how ordinary consumers make complex economic decisions: financial literacy and retirement readiness. quarterly journal of finance, 7(03), 1750008. 3. financial literacy and education commission (23 june 2006). "taking ownership of the future: the national strategy for financial literacy" (pdf). mymoney.gov. archived from the original (pdf) on 27 may 2010. retrieved 3 october 2019. 4. "financial literacy education in ontario schools". edu.gov.on.ca. ontario ministry of education. retrieved 3 october 2019. 5. lusardi, a; mitchell, o (2011). "financial literacy around the world: an overview". journal of pension economics and finance. 10 (4): 497–508. doi:10.3386/w17107. pmc 5445931. pmid 28553190. 6. "international gateway for financial education > home". financial-education.org. american journal of business management, economics and banking issn (e): 2832-8078 volume 5, | oct., 2022 p a g e | 66 www.americanjournal.org correlate of destination accessibility, leisure tourists’ satisfaction and revisit intention in akwa-ibom state, south-south nigeria *etuk, joseph sunday1 anosike, ugochukwu miracle2 1 department of hospitality and tourism management, faculty of management sciences, universityof port harcourt, choba, rivers state, nigeria. 2 department of hospitality and tourism management, faculty of agriculture, federal university, oye-ekiti, ekiti state, nigeria. *author for correspondence email: joseph.etuk@uniport.edu.ng a b s t r a c t k e y w o r d s it has been argued that travelling in nigeria is travail, and poor access to tourist sites accounts significantly for the dismal tourism performance in some states and regions in nigeria. therefore, this study was carried out to empirically ascertain destination accessibility and tourists’ satisfaction in akwa-ibom state, south-south nigeria. to carry out the study, a survey method was adopted whereby primary data were obtained from 306 respondents through the questionnaire method. descriptive and univariate analysis was done using simple percentages, mean score, standard deviation while the pearson product moment correlation technique was deployed for hypotheses testing. the analyzed data revealed that destination accessibility was strongly positively correlated with tourists’ satisfaction and revisit intention, but the correlation was insignificant. this implies that tourists were impressed by the accessibility system of akwa-ibom, even to the tourists’ sites, however, their total experience at the tourist sites was not satisfactory due to unavailability of adequate modern facilities. the recommended the provision of adequate facilities by the tourist sites’ management for visitors’ fun and relaxation and revisit intention. destination accessibility, tourists’ satisfaction, revisit intention introduction in the traditional marketing literature, production is incomplete until the products/services are accessible to the consumer at the right time, at the right place and in the right quantity, thereby creating marketing utility (ekeke, 2021). in the same vein, tourism marketing literature recognizes that a memorable tourism experience would be impossible without an effective and efficient american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 67 www.americanjournal.org destination accessibility system that delivers tourist satisfaction at the right time and in safety, too (marinao, 2017). accordingly, the concept of time and place utilities which confer value to products and services in the traditional marketing domain, has been broadened and entrenched in the tourism marketing literature, though with different semantics and nomenclatures such as accessibility, distribution, transportation and connectivity. viewed from the tourism marketing context, accessibility refers to the ease with which tourists or visitors move from one destination to another destination, usually through the means of transportation and other supporting or related infrastructural facilities (unanam, 2021). specifically, accessibility of a destination refers to infrastructural facilities such as roads, airports and railways as well as transportation systems and modes that ease traveller’s movement to a destination (chahal & devi, 2015). consequently, the role of accessibility in tourism development cannot be over-emphasized. this is because the concept of tourism implies activities that involve the movement of people from one destination to another. the purpose of such movement may be leisure/relaxation, medical, educational, religious pilgrimages, business or sport activities (page & connel, 2006). the touring business or activity, therefore, implies the availability or existence of good road network, road-worthy vehicles, rail transport and terminals, air transport with good airport facilities and services and favourable visa regime (chao et al, 2013). therefore, an effective and efficient destination accessibility system can contribute to tourists’ satisfaction with attendant positive outcomes such as repeat visits and referrals and related socio-economic benefits through increased tourist arrivals, tourist spending. optimizing tourist satisfaction for repeat visits and referrals, therefore, becomes a task for destination recreational organizations since business success depends not just on customers’ acquisition but also on customers’ retention. in this regard, tourism marketers contend that the quality of accessibility can make or mar a destination with attendant negative consequences. it is for this purpose that forward-thinking governments place high premium on the development of transportation infrastructure and system to support tourism development. destination marketers recognize that tourism growth and indeed economic development would be freely limited in a country that is characterized by accessibility deficits whether by air, sea or land (akubo,2016). in cognizance of its importance, tourism destination accessibility has stimulated empirical and conceptual interest among, scholars in many developed and developing economies (buhalis, 2000; bello & bello, 2017,). in the same vein, many extant studies show a correlation between accessibility and positive outcomes in customer satisfaction, repeat business, increased revenue, increased profit in other organizational context (bagil, 2014). furthermore, current destination marketing studies show a correlation between accessibility and tourist experience and behavior (ekeke & ndu). however, knowledge is lacking in the literature regarding the role of accessibility in domestic tourism development through tourist satisfaction and revisit intention in nigeria. in fact, it has been argued that poor access to tourist destinations accounts significantly for the dismal tourism performance in some states and regions in nigeria. however, the extent to which this postulation pertains to the akwa-ibom state needs to be empirically verified. in the light of the above, this study was carried out to investigate destination accessibility and its correlation with tourism destination performance in nigeria through tourist satisfaction and revisit american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 68 www.americanjournal.org intention, focusing our empirically searchlight on some tourist sites in akwa ibom state, southsouth, nigeria. 2. literature review 2.1 theoretical foundation this paper draws on the disconfirmation of expectations theory to understand the mechanics of accessibility and leisure tourists’ satisfaction in a destination performance context. the disconfirmation of expectations theory the theory which was propounded by oliver (1980), states that consumers purchase goods and services with pre-purchase expectations about the anticipated performance. the expectation level then becomes a standard for judging the product. that is, once the product or service is used, outcomes are compared against expectations. if the outcome matches the expectation, confirmation occurs. disconfirmation occurs where there is a difference between expectations and outcomes. a customer is either satisfied or dissatisfied as a result of positive or negative difference between expectations and perceptions. thus, when service performance is better than what the customer had initially expected, there is a positive disconfirmation between expectations and performance resulting from satisfaction (aliman et al 2016). therefore, it could be argued that in the tourism context, tourist satisfaction or dissatisfaction requires experience with the destination attributes, influenced by the perceived quality and the value of the tourism services at the destination (puh, 2014). it is the primary determinant of tourist behavior in the industry. the relevance of this theory to the present study is its appropriateness for the review of the dependent variable measures of tourism marketing performance of the study (tourist satisfaction and revisit intention). the disconfirmation of expectation theory helps destination marketing managers in serving their target markets and in making informed decisions. this theory is very useful to this study because previous research on customer satisfaction had also adopted it, as shown in marinao (2017; zenel, 2016; chen, khamwon & rachbuakoat, 2016; assaker & hallak, 2012). what this suggests is that the results of continuous customer satisfaction monitoring can serve as an input for trend analysis and strategic discussions regarding the development of a tourist destination. 2.2 conceptual clarification the concept of destination accessibility hanley and merkworky (2008) assert that accessibility is a crucial dimension of destination marketing capability in facilitating the movement of tourists from one destination to another. chahal and devi (2015) view accessibility of the destination as the infrastructure facilities such as roads, airports, and railways that facilitate tourists’ movement to the destination and other places of interests to the tourists. in this regard, accessibility capability is the ability of the entire transportation system comprising of routes, terminals and vehicles for easy movement of visitors to and around the destination (buhalis, 2000). it is an important destination marketing capability which creates place utility that explains the ease of getting to the destination or attraction site (uwemedimo, 2015). american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 69 www.americanjournal.org researchers affirm that accessibility motivates tourists to embark on a trip to a particular developed attraction (bagil 2014; okoli, 2001), hence, the need for infrastructure that supports the means of transportation air, land or sea transportation to the site. bello and bello (2017) affirmed that accessibility infrastructure explains those facilities that facilitate easy flow of people, goods and services from a place to another. it includes road and highway network, including structures (bridges, tunnels, culverts, retaining walls), electrical system (street lighting and traffic lights), mass transit system (commuter rail systems, subways, and bus transportation), railways, including structures terminal facilities (rail yards train stations), seaports and lighthouses, airports including air navigational systems, bicycle paths and pedestrian walkway. the authors assert that in some countries, it is the responsibility of government to provide a transportation system. in their view, the government performs this role because it is an important tourism stakeholder in any destination. denielson (2015) recognized the role of transport sector in the accessibility of tourist destination in the sense that it facilitates the movement of tourists from home to the destination and back home as expressed by the operations of airlines and road transport companies as well as private car owners that are involved in tourism. page and connell (2006) reveals that the availability of modes of transportation such as airplanes, motor cars, trains have enhanced the growth of international and domestic tourism through mass participation in tourism. lickorish and jenkins (2003) refer to the afore-mentioned as ‘democratization of tourism’. research by world travel and tourism council (2018) indicates that the transport sector made a significant contribution to the global gdp. tourist satisfaction chen, huang and petrik (2016) view tourist satisfaction as the extent of the tourist’s fulfillment of pleasure which occurred from the trip experience about tourist a product or service feature at the destination that matched the tourist’s desires, expectations and wants in association with the trip. viewed from that standpoint, satisfaction is created by the comparison of the customer’s expectation before and after consumption. in the tourism context, satisfaction is primarily considered a function of pre-travel expectations and post-travel experiences. the tourist is satisfied when experiences go beyond the expectations. however, if the tourist feels displeasure, dissatisfaction will be the expected outcome (chen & chen, 2010). furthermore, chenini and touati (2018) state that tourist satisfaction is an overall evaluation of destination performance based on all prior experiences of the tourist with it. thus, a tourist who receives what he or she expected in terms “of pleasurably memorable touristic experience” is most likely to be satisfied. revisit intention ramukumba, (2018) conceptualized customer repurchase intention as a “deeply-held commitment to re-buy or re-patronize a preferred product/service consistently in the future’. implicit in the above definition, is the idea that repurchase intention is an attitudinal loyalty. in the same vein, singh, (2018) defined attitudinal loyalty as the intention of a consumer to continue his/her relationship with the organization in the future regardless of whether competitors lower their offering prices. repurchase intention is hypothesized as the willingness to recommend friends and the intention to continue to patronize the organization. when applied in the context of tourism, revisit intention refers to the willingness or the likelihood of a tourist revisiting the same destination, the same tourist site, the same hotel or the same american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 70 www.americanjournal.org restaurant in the future (smith & pusko, 2010). therefore, it has been argued that attitudinal loyalty represents a higher-order or long-term commitment of a customer to an organization or destination which results in a long, fruitful relationship between the organization and the customers over time, based on customer satisfaction (al-msallam, 2015). the importance of tourist revisit intention is well documented in tourism research. fridgen (2009) reports that international tourism agencies and national tourist organizations use tourist revisit intention in tourism forecast, which is crucial in predicting or determining tourist flow and spending, especially in measuring destination competitiveness. this clearly shows that tourist revisit intention is very significant in building tourism patronage, tourist flow and expenditure. 2.3 empirical review and hypotheses development accessibility capability and marketing performance there is growing tourism literature on the influence of accessibility on tourism marketing performance. syracus, dieteman and kruskal (2015) investigated the influence of touristic accessibility and destination loyalty among air passengers to tourist destinations in west africa, surveying a sample of 683 involving domestic and international tourists. based on the measures of airport facilities and quality of aircraft), the study revealed that there was no significant difference in the perception of domestic and international air passengers concerning accessibility challenges.. however, the finding reinforces the criticality of touristic accessibility to marketing performance in the sense that tourists are drawn to destinations that have an effective and efficient transportation system. therefore, destinations deficient in infrastructure cannot generate tourist satisfaction. consequently, tourist flow will be low with a negative effect on revenue generation. research conducted by puh (2014) sought to test the proposition that accessibility could affect destination performance. the study aimed to determine the factors that influence destination image and to explore the relationship between destination image and tourism satisfaction in dubrovnik, croatian context. a key finding of the study was that accessibility to tourist sites, among other factors such as natural resources, economic issues, social environment, tourist leisure, recreation, and atmosphere of the place generated a positive influence on a destination image, creating a positive effect on tourist satisfaction. adebayo and iweka (2014) have empirically examined touristic accessibility and tourism development in developing economies. the finding of the study revealed that lack of access roads to tourist sites, traffic jam in the city centres, poor road network, and inadequate supporting touristic facilities accounted significantly for poor leisure culture in developing nations, thus, leading to low tourism patronage. the study confirmed that well-developed transport infrastructures are preconditions for consuming other tourism services at the destination. however, the extent to which destination accessibility affects leisure tourists’ satisfaction in akwa ibom is unclear. therefore, we aimed to test the underlying propositions: h1: destination accessibility is correlated with tourists’ satisfaction at tourist sites in akwa ibom state. h2: destination accessibility is correlated with tourists’ revisit intention to tourist sites in akwa ibom state. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 71 www.americanjournal.org methodology research design and participants the descriptive survey design was adopted for the study because it helped the researcher to find answers to the research questions of the study and to test the hypotheses. the population of this study included domestic and international visitors available at ibeno beach, nwaniba beach, ibaka beach and utaewa beaches during the christmas (2019)and new year (january 1st jan, 2020) holiday season in akwa-ibom state. diesamm (2012) has noted that in the context of the tourism and hospitality industry, the population of research involving customers is always large, unpredictable, mobile and transient. it is often not fixed; for example, the likelihood of a researcher meeting the same beach visitor or air passenger again at the same place in the future is slim. sampling/sample size determination the purposive sampling method was adopted to select the sample based on the researcher’s judgment and on-the-spot accessibility, availability and willingness of the beach visitors to participate in the study during the researcher’s visits to the beaches. the sample size used in this study was determined by the application of freund and williams (1992) formula. thus, three hundred and twenty-three (323) beach visitors constituted the sample size of the study. our sample size is consistent with the extant suggestion of roscue (1975 cited in aliman et al., 2016) that a sample of more than 30 and less than 500 is sufficient for most research in the social sciences of which tourism is a subset. quota sampling was also adopted in the selection of the sample subjects because of variation in the level of beach development and the destination’s drawing power. this sampling method is evident in the number of visitors drawn from each of the four beaches surveyed in the study. as udall & eneyo (2015) rightly stated, “there is no best sampling method; the nature of the study should dictate the method to be used”. the implication is that both probability and nonprobability sampling methods are acceptable in tourism/hospitality research. research instrument, procedure and measures primary data were obtained from the respondents through the questionnaire, while secondary data were generated from relevant academic journals and textbooks in tourism marketing. the questionnaire was the primary data collection instrument for this study. a questionnaire is a set of specific questions that are constructed and used by the researcher in obtaining information from respondents in a survey research (makinde 2015). the researcher and ten (10) research assistants administered copies of questionnaires on tourists/visitors visiting the four beaches for fun during the 2019 christmas and 2020 new year holiday season in akwa ibom state. visitors/tourists were briefed on the purpose of the study and the questionnaires retrieved after completion. the dependent and independent variables were measured onthe5-point likert scale, and the response scales for each statement in the survey questionnaire are 5-strongly agree, 4 –agree fairly strongly, 3agree, 2-disagree, 1-strongly disagree. the questionnaire items of the variables were modified from previous studies based on their relevance and appropriateness to the present study. four (4) items on destination awareness strategies were modified from (blain, et al., 2005). while tourist destination choice was treated as a one dimensional construct involving 3 items were adapted from (gold & whard, 2011) american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 72 www.americanjournal.org validity, reliability and analytical techniques in this study, the various types of validity adopted were: face validity, convergent validity and discriminate validity. face validity for the research instrument used was ascertained through expert opinions and contributions. also, it was assessed by tourism experts such as tourist managers, tour operators and marketing scholars based on their experience in the industry and academia respectively. reliability was determined using (i) cronbach alpha co-efficient (0.7 and above) and (iii) factor analysis, composite reliability and average variance extract as well as correlation matrix for testing how the combination of measures constituted valid and reliable factors. the descriptive data were analyzed using frequency distributions, percentages, mean scores and other descriptive statistical measures, all in tables with the aid of the spss & microsoft excel. pearson product moment analytical tool was used for the hypotheses. this analytical tool is often used to examine the strength of the relationship between an independent and dependent variable in a study(onodugo, ugwuonah & ebinne,2010). 4. analysis and results demographic profile of respondents: 4.1 demographic profile of respondents table 1 demographic profile of respondents s/no demographic variables number percentage 1 category of visitors foreign 37 12 domestic 271 88 total 308 100 2 type of visitors companies staff 36 12 government officials 10 3 independent visitors 262 85 total 308 100 3 length of stay 1 day 203 66 2 – 5 days 105 34 5 days and above total 308 100 4 age of respondents 18 – 30 101 33 31 – 40 83 27 41 – 50 70 23 51 and above 54 17 total 308 100 5 marital status of respondents single 169 56 married 101 33 divorced 20 6 separate 18 5 total 308 100 american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 73 www.americanjournal.org 6 gender of respondents male 172 56 female 136 44 total 308 100 7 educational background of respondents fslc 31 10 wasc/gce 62 20 ond bsc/hnd mba/msc phd others 48 103 6 10 15 33 2 3 total 308 100 8 state of origin of visitors akwa-ibom 227 74 cross river state 51 17 rivers south east delta foreign 18 7 6 2 total 308 100 9 nationality of respondents nigerians 294 96 ecowas 0thers 10 4 3 1 total 308 100 10 purpose of visit appreciation of nature / leisure 198 64 educational excursion 21 7 group meeting 89 29 total 308 100 11 frequency of visit first-time visitor 139 45 repeat visitor 169 55 total 308 100 12 travel party alone 62 20 family/partner 91 30 friends/relatives organized groups 108 47 35 15 total 308 100 13 monthly income of visitors n100,000 55 18 n101,000 to n200,0001 63 53 n200,000 90 29 total 308 100 american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 74 www.americanjournal.org section 1 of table 1 above shows the information on the category of visitors. the table revealed that (37) respondents (12%) were foreign while (271) respondents (88%) were domestic. thus, implying that domestic respondents were of the majority. section 2 of table 1 above shows the information on the type of visitors. the table revealed that (36) respondents (12%) were companies staff, (10) respondents (3%) were government officials, while (262) respondents (85%) were independent visitors. thus, showing that independent visitors were of the majority. section 3 of table 1 above shows the information on the length of stay. the table revealed that (203) respondents (66%) stay for 1 day while (105) respondents (34%) stay for 2 – 5 days. this result points out that majority of the respondents stayed for 1 day. section 4 of table 1 above shows the information on age brackets of the respondents. 101 respondents (33%), were within 18-30 years, 83 respondents (27%) were within 31–40 years, 70 respondents (23%) were within 41–50 years while 54 respondents (17%) were greater than 51 years. this information shows that majority of the respondents were within the ages of 18 – 30 years. section 5 of table 1 shows the marital status of respondents. 169 respondents (56%) were single, 101 respondents (33%) were married, 20 respondents (6%) were divorced, while 18 respondents (5%) are separated. this information implies that majority of the respondents were single. section 6 of table 1 shows the gender of respondents. 172 respondents (56%) were male, while 136 respondents (44%) were female. this information implies that majority of the respondents were male. section 7 of table 1 shows the educational background of respondents. fslc (31) (10%), wasc/gce (62) (20%), ond (48) (15%), b.sc/hnd (103) (33%), m.sc/mba (54) (17%), ph.d (6) (2%), others (10) (3%). from the information it shows that respondents with b.sc/hnd are of the majority. section 8 of table 1 shows the state of origin of visitors. 227 respondents (74%) were from akwaibom, 51 respondents (17%) were from cross river state, 8 respondents (6%) were from rivers, 7 respondents (2%) were from south east, while 5 respondents (1%) were from delta. from this information, it shows that respondents from akwa-ibom were the majority. section 9 of table 2 shows the nationality of respondents. 294 respondents (96%) were nigerians, 10 respondents (3%) were from ecowas countries, while 4 respondents (1%) were others. from the above information, it shows that respondents from nigeria are of majority. section 10 of table 1 shows the purpose of the visit. 198 respondents (64%) came for appreciation of nature/ leisure, 21 respondents (7%) came for educational excursion, while 89 respondents (29%) came for group meeting, thus, showing that respondents who came for appreciation of nature/leisure are of majority. section 11 of table 1 shows the frequency of visit. 139 respondents (45%) were first-time visitors, while 169 respondents (55%) were repeat-visitors. from this information, it shows that majority of the respondents were repeat visitors. section 12 of table 1 shows the travel party. 62 respondents (20%) travelled alone, 91 respondents (30%) travelled with family/partner, 108 respondents (35%) travelled with friends/ relatives, while 47 respondents (15%) travelled with organized groups. from this information, it shows that majority of the respondents traveled with friends/relatives. american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 75 www.americanjournal.org section 13 of table 1 shows the monthly income of visitors. 55 respondents (18%) earn less than n100,000, 163 respondents (53%) earn n101,000 – n200,000, while 90 respondents (29%) earn above n200,000. thus, majority of respondents earn n101,000 to n200,000 monthly. univariate analysis the elements in the study were individually analysed using descriptive statistics, as shown below: table 2 summary of descriptive statistics on items of accessibility capability descriptive statistics destination accessibility items n mean std. deviation availability and adequacy of airport terminal facilities. 308 4.016 9 1.30246 good road network to attraction sites 308 4.214 9 1.19779 effective rail transportation system 308 1.063 0 1.19676 availability and adequacy of modern sea-going vessels to coastal sites 308 3.429 2 1.27458 provision of adequate parking facilities at the sites 308 4.246 8 1.19751 adequacy of good signage to the sites 308 1.776 0 1.01702 valid n (listwise) 308 information on table 2 above indicates the mean scores on three items are greater than the grand mean (3.9). this result implies that respondents generally agreed on the fact that the attraction sites were accessible in terms of the good road network, functional airport terminal facilities, affordable road transport system, good road maintenance culture, and adequate local parking facilities, except the absence of good signage at the destinations, rail transportation and sea-going vessels. table 3 descriptive statistics on items of tourist satisfaction descriptive statistics n mean std. deviation wise decision to visit the beach 308 4.0909 .98102 fulfillment of expectation 308 2.0487 1.16164 high satisfaction and memorable experience 308 1.8149 1.06537 pleasurable sightseeing opportunities 308 4.1312 1.24939 overall satisfaction 308 2.0390 1.19381 valid n (listwise) 308 american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 76 www.americanjournal.org information on table 3 above indicates that the mean scores on two of the items were greater than 3.9 leaving three items with mean scores that are less than 3.9 (grand mean); indicating that the respondents did not generally agree on all the items. the implication is that respondents generally agreed on the fact that they made a wise decision to visit the beaches, which provided pleasurable sightseeing opportunities. on the other hand, the expectations were unfulfilled, while the overall satisfaction level was very low. table 4 descriptive statistics on items of revisit intention items n mean std. deviation likelihood of return based on experience at the beach 308 4.0974 1.25571 likelihood of return based on the beautiful coastline of the beach 308 4.1013 1.37037 likelihood of revisit with family and friends 308 4.0429 1.35867 valid n (listwise) 308 information on table 4 above indicates that all the mean scores on the items were greater than 3.9 (grand mean), indicating that the respondents agreed on all the items. the standard deviations were relatively low. this implies that the respondents generally agreed on prior experience and beauty of the beaches as likely reasons for a return visit. they also indicated willingness to repeat the visit with family and friends. bivariate analysis pearson product moment correlation (ppmc) was conducted to determine the strength of the relationship between accessibility and tourists’ satisfaction. test of hypothesis one ho1:there is no significant relationship between accessibility and tourist’ satisfaction at tourist sites in akwa-ibom state. table 5: test of correlation between accessibility and tourist satisfaction accessibility tourist satisfaction ppmc's rho accessibility correlation coefficient 1.000 .835** sig. (2-tailed) . .055 n 308 308 tourist satisfaction correlation coefficient .835** 1.000 sig. (2-tailed) .055 . n 308 308 **. correlation is significant at the 0.05 level (2-tailed). decision: table 5 above reveals a correlation coefficient of 0.835 and probability value of .055. this result suggests positive, strong but insignificant relationship between accessibility and tourist american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 77 www.americanjournal.org satisfaction at tourist sites in akwa ibom state. therefore, the null hypothesis was accepted at 0.05 level of significance. test of hypothesis two ho2 there is no significant relationship between accessibility and tourist revisit intention to tourist sites in akwa-ibom state. table 6: test of correlation between accessibility and revisit intention accessibility revisit intention ppmc's rho accessibility correlation coefficient 1.000 .821** sig. (2-tailed) . .059 n 308 308 revisit intention correlation coefficient .821** 1.000 sig. (2-tailed) .059 . n 308 308 **. correlation is significant at the 0.05 level (2-tailed). decision: table 6 above reveals a correlation coefficient of 0.821 and probability value of .049. this result implies that accessibility correlates positively strongly with tourists’ revisit intention, but the relationship is insignificant. therefore, the null hypothesis was accepted at 0.05 level of significance. the result (rho = .821; p-value = .059 > 0.05)) implies that a positive and but insignificant relationship exists between accessibility and revisit intention to tourist sites in akwaibom. discussion destination accessibility, tourists’ satisfaction and revisit intention the findings of this study indicated that destination accessibility correlated strongly and positively with tourist satisfaction and revisit intention, but the relationship was insignificant ((rho = .835; pvalue = .055 > 0.05). the result is consistent with previous studies in noncoastal tourism and other industries in different countries across the globe such as syracus et al. (2015); adebayo and iweka (2014), ndanusa, et al. (2014), gearing, (2004), pascumek (2012), boland (2012) which established a strong positive nexus between accessibility and tourists’ satisfaction. this result in our context implies that tourist sites were accessible to the visitors, due to the fact that akwa ibom has good road network, functional air transport system operationalized by ibom air, modern airport with functional facilities and efficient intra and interstate road transport services with road worthyvehicles as epitomized by akwa ibom state transport company (aktc). however, the insignificant relationship between the two variables suggests that tourists’ satisfaction with destination accessibility components in akwa-ibom state does not necessarily translate into positive memorable experience for the tourists if the tourist sites lack appropriate facilities as was the case in our own context. interestingly surprising is the implication of the insignificant relationship between accessibility and revisit intention, meaning that overall low tourists’ american journal of business management, economics and banking volume 5, oct., 2022 p a g e | 78 www.americanjournal.org satisfaction will not affect their revisit intention. in other words, despite their low total satisfaction, visitors, however, indicated an intention to revisit the tourist sites in the future. we can only suspect that, this, perhaps is due to the fact that we focused only on tourist beach sites, especially ibeno beach that draws thousands of visitors for the annual ibeno beach christmas party, excursions, etc. many tourists are also likely to revisit the beach for ocean viewing/ strolling along the beach coast even when basic facilities are unavailable or are willing to return based on their expectations for improvement of the tourist sites. conclusion, implications and recommendations the result of our empirical analysis has shown that accessibility is an important factor in predicting tourist satisfaction and intention to revisit the tourist sites in the future. accordingly, the study concludes that although the tourists/visitors were impressed with the destination accessibility system of akwaibom state, the overall low tourist satisfaction experienced by the tourists/visitors was largely a function of inadequate facilities at the tourist sites. nevertheless, that experience did not affect revisit intention. therefore, the study concluded that effective and efficient destination accessibility correlated with tourist satisfaction and revisit intention, but the relationship was insignificant in own context as actual tourist site experience and tourist expectation of future improvement may vary. however, our research holds certain implications for tourism service providers, akwa-ibom state ministry of culture and tourism and tourism promotion agencies as it provides a better understanding of tourists’ behavioural intention towards the development of tourists attraction sites’ marketing strategies towards the achievement of destination marketing objectives besides the provision effective and efficient transportation system. furthermore, the empirical evidence of this study offers actionable information to all tourism destination stakeholders based on the fact that the tourism product is an amalgam of several individual products which contribute to the total memorable tourism experience. consequently, the study recommends that the primary beach products (ocean and beach sand) should be harnessed to deliver value addition through the provision of adequate high-quality facilities such as: resorts, hotels, restaurants, event centres, parasols, changing rooms, seafront native seafood kitchens, bathing rooms, sun-bathing amenities to appeal to visitors and that sea-going vessels be introduced through public, private partnership arrangement for the exploration of coastal tourist sites in akwa-ibom state. references 1. adebayo, k.a., & iweka, c.o (2014). optimizing the sustainability of tourism infrastructure in nigeria through design for deconstruction framework, american journal of tourism management, 18(6), 87-95 2. akubo, a. i. 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(2015). destination attributes: the roles of tourist attractions and accessibility in creating and sustaining patronage. travel review. 18(2), 34-50 40. udall, b. & eneyo, w.c. (2015). relationship management: scale development for tourism and hospitality management. tourism review. 14(3) 51-55 41. unannam, w. t. (2021). the role of transportation in tourism development in nigeria. international journal of economic development, 12 (4), 112-126 42. uwemedimo, e.o., (2015). tourism development. architecture: policy implementation challenges; journal of economic development. 6(12) 69-74 43. world travel and tourism council report (2018). travel and tourism economic impact, nigeria. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 77 www.americanjournal.org human capital as a strategic asset: theoretical perspectives and investment imperatives in the context of labor productivity phd akhmadaliyeva nikhola nikholateaches@gmail.com +998995382197 a b s t r a c t k e y w o r d s human capital has emerged as a decisive factor in ensuring sustainable economic growth, labor productivity, and national competitiveness in a rapidly evolving global economy. this article explores the theoretical foundations, economic classifications, and contemporary approaches to understanding human capital. particular attention is given to the relationship between human capital and investment, supported by empirical insights and historical development of the concept. drawing on the experience of uzbekistan and global economic theory, the paper discusses how targeted investments in education, health, and training translate into higher productivity and inclusive development. the study concludes with a framework for understanding the formation of human capital through institutional, individual, and innovation-driven mechanisms. human capital, investment, labor productivity, economic development, uzbekistan, innovation, education, health capital, sustainable growth. introduction every economic system functions according to its own set of laws and categories. in recent decades, the increasing role of knowledge, creativity, and innovation has propelled the human factor to the forefront of development discourse. in the current knowledge economy, human capital is no longer viewed as a supplementary production input but as a unique and strategic asset. this paradigm shift has resulted in a renewed emphasis on education, health, and cognitive capacities as key drivers of productivity, economic modernization, and competitiveness. the objective of this study is to explore the economic content and role of human capital by examining its theoretical evolution, structural components, and practical implications for economic growth. it builds upon classical and modern theories to uncover how investments in individuals generate both social and economic returns, particularly through improved labor productivity. 1. literature review according to the definition of s.fisher (2002), “human capital is a measure of the ability to generate income embodied in a person. human capital consists of innate abilities and talents, as well as acquired american journal of business management, economics and banking volume 35 april 2025 p a g e | 78 www.americanjournal.org education and skills” [1]. so, the scientist based his definitions on the possibility of developing human capital as innate or acquired capital. according to k. kh. abdurakhmanov (2011), “human capital is a factor of economic growth, and achieving human development achievements in the republic implies increasing investments in human capital” [2]. “human capital in a narrow sense represents a person's intellect, health, knowledge, high-quality and productive work and his quality of life, in a broad sense, human capital is an intensive production factor of economic development, development of society and family, educated part of labor resources, intellectual and management work, living and working environment” [3]. abdurahmanov (2019) fully explained not only the economic but also the social importance of human capital. 2. research methodology in the article, research methods such as induction and deduction, systematic and comparative analysis, and economic and statistical methods are used to develop scientific conclusions and proposals for the development of uzbekistan’s human capital index. 3. analysis and results in today’s knowledge-driven global economy, human capital is increasingly recognized not just as a factor of production, but as a strategic asset that defines a nation’s capacity for innovation, resilience, and long-term growth. labor productivity, one of the most important indicators of economic performance, is closely intertwined with the quality and development of human capital. the concept of human capital traces back to classical economic thinkers, yet it gained prominence through the human capital theory advanced in the 20th century by scholars such as theodore schultz, gary becker, and jacob mincer. according to this framework, individuals’ education, skills, health, and experience represent forms of capital that enhance their productivity and income-generating potential. investment in these areas yields returns not only to individuals but to society at large. modern interpretations extend the concept beyond formal education to encompass: soft skills and adaptability in changing job markets; cognitive and digital literacy, particularly in service-oriented and tech economies; health and mental well-being, as enablers of sustained economic participation. moreover, endogenous growth theory further supports the idea that investment in human capital is central to sustained innovation and productivity improvements. unlike physical capital, human capital tends to accumulate with use and can generate increasing returns, especially when paired with technological progress. empirical evidence consistently supports a positive correlation between human capital development and labor productivity. nations with strong investment in education and healthcare systems often exhibit higher levels of productivity growth and innovation capacity. for instance: oecd countries have demonstrated that every additional year of average schooling can significantly raise per capita gdp. world bank data shows that countries scoring higher on the human capital index generally outperform others in productivity metrics. at the enterprise level, firms that invest in employee training and development see measurable gains in output per worker, improved operational efficiency, and reduced turnover rates. furthermore, sectors american journal of business management, economics and banking volume 35 april 2025 p a g e | 79 www.americanjournal.org characterized by rapid technological change (such as finance, ict, and green energy) demand continuous human capital renewal through lifelong learning and reskilling initiatives. human capital is often distinguished from related concepts such as labor force, human potential, and human resources. unlike physical capital, it cannot be separated from its bearer, is non-transferable, and requires continuous reinvestment. it can be categorized into five levels: individual level (skills, education, health); micro level (firm-specific human capital); macro level (national stock of educated and healthy workforce); mega level (global knowledge and innovation networks). human capital includes not only knowledge and cognitive skills but also emotional intelligence, motivation, and creativity. health capital—physical and mental wellness—is integral to human productivity. labor productivity, in turn, is a key indicator of human capital performance. as shown in uzbekistan’s strategic planning documents, human capital is vital for long-term national goals. notable features of human capital include: non-transferability; longevity and adaptability; inseparability from individuals; contribution to innovation and institutional development. investment in human capital occurs through education, healthcare, training, and professional development. according to heckman and lochner, early-stage investments yield higher returns. hanushek and woessmann empirically confirm that cognitive skills strongly correlate with gdp growth [4]. uzbekistan has made significant investments in education and healthcare. the presidential decree pf16 (2025) mandates increased public funding for human capital formation. over 102.5 trillion uzs was allocated in 2024 alone [5]. reforms focus on preschool education, vocational training, computer literacy, and expanding inclusive education. international experience supports these initiatives. pritchett emphasizes state investment in education and health as foundational to national growth. sveynar’s research in eastern europe and kwon’s analysis in south korea confirm that both domestic and foreign investments contribute to human capital accumulation and productivity gains [6]. green education is increasingly seen as a critical component of human capital. it integrates environmental literacy, climate resilience, and circular economy principles into the learning process. in uzbekistan, this is reflected in the integration of green subjects into school curricula, support for eco-entrepreneurship, and the promotion of green jobs. schumpeter’s innovation theory reinforces the importance of knowledge-based entrepreneurship, where human capital becomes the foundation for structural transformation and competitive advantage [7]. the ultimate purpose of human capital development is increased labor productivity. labor productivity reflects the effectiveness of knowledge, skills, and effort in producing goods and services. investments in human capital, both direct (education, health) and indirect (labor mobility, digital access), significantly raise productivity levels. american journal of business management, economics and banking volume 35 april 2025 p a g e | 80 www.americanjournal.org empirical models demonstrate a strong correlation between investment in human capital and macroeconomic outcomes such as employment rates, income levels, and innovation. in uzbekistan, increased labor productivity is evident in sectors receiving targeted human capital investments, such as education, health services, and digital industries. in order to develop human capital, it is essential to identify its key factors and make targeted investments to achieve positive outcomes. there are both direct and indirect methods of shaping human capital, and these methods contribute significantly to enhancing labor productivity. the increase in productivity is closely linked to the development of human capital, as the primary goal of investing in human capital is to boost productivity. improved labor productivity plays a critical role in both work performance and personal development. it serves as a foundation for individuals to succeed in various fields. productivity is associated with effective labor and promising job opportunities, both of which help individuals enhance their knowledge and skills. individuals with high levels of labor productivity tend to possess strong personal attributes. such individuals are typically patient, disciplined, and actively seek opportunities to achieve excellence. their level of work-related knowledge and experience is generally high. as such, the growth of labor productivity becomes a key factor in the development of human capital. one of the most effective ways to acquire the knowledge, skills, and experience necessary for personal development is through work itself. therefore, a person and their capabilities in any professional activity represent a form of capital. labor power is essentially the ability to work, whether physical or intellectual. a person can offer this ability in exchange for a wage, which means labor becomes a commodity. nevertheless, part of this labor power is not exchanged under any circumstances—it remains inherent to the individual and is regarded as their personal capital. 4. conclusion human capital is a multidimensional asset with far-reaching implications for economic development. the evolution of its theory, backed by empirical evidence, demonstrates that strategic investments in education, health, and green competencies are essential for inclusive and sustainable growth. uzbekistan’s efforts in aligning its national strategies with international human capital frameworks offer valuable insights for other emerging economies. as global competition intensifies and ecological challenges mount, strengthening human capital through innovation, resilience, and adaptability will be the cornerstone of future economic success. references 1. фишер с., дорнбуш р., шмалензи р. экономическая теория. — м., юнити, 2002. с. 21. 2. abdurahmonov q.x. o‘zbekistonda inson taraqqiyoti: erishilgan yutuqlar, mavjud muammolar va ularni hal etish yo‘llari./ o‘zbekistonning mehnat salohiyati: hozirgi holati va undan foydalanish istiqbollari. respublika ilmiy-amaliy anjuman tezislari to‘plami. t.: 2011. 22-27 bet. 3. abdurahmonov q.x. mehnat iqtisodiyoti: o‘zbekiston respublikasi fanlar akademiyasi “fan” nashriyot davlat korxonasi; 216 b, 2019. 4. hanushek, e. a., woessmann, l. the role of cognitive skills in economic development. // journal of economic literature, 46(3), p. 607-668, 2008. american journal of business management, economics and banking volume 35 april 2025 p a g e | 81 www.americanjournal.org 5. “o‘zbekiston — 2030” strategiyasini “atrof-muhitni asrash va “yashil iqtisodiyot” yilida amalga oshirishga oid davlat dasturi to‘g‘sidagi pf-16 sonli prezident farmoni 6. svejnar, j. transition economies: performance and challenges. journal of economic perspectives, 16(1), 3-28, 2002 7. борисова н. н. к вопросу об эволюции теории человеческого капитала. //человеческий капитал и профессиональное образование. – 2016. – № 1 (17) american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 31 www.americanjournal.org time management and service delivery of health centres in bonny island, rivers state enoch chioma sunny department of business administration federal university, otuoke bayelsa state, nigeria akenbor o. cletus phd department of accounting federal university, otuoke a b s t r a c t k e y w o r d s this study examined the relationship between of time management and service delivery of health centres in bonny island, rivers state. the study adopts a survey research design. the study is limited to sixty-three (63) staffs of selected healthcare centres in bonny island. the data generated were analyzed using descriptive statistics and pearson correlation analysis. the hypotheses formulated were tested using multiple regression analysis. the result of regression analysis shows that found a significant relationship between queuing setting and priority setting on prompt service delivery in health care centres in bonny local government area, while an insignificant effect on goal setting, work schedule and multitasking on prompt service delivery in health care centres in bonny local government area. the study concludes that effective time management does play a critical role in enhancing service delivery in public health centres, but its impact is largely dependent on the specific strategies applied and the context within which they operate. particularly, priority setting and improved queuing systems should be considered strategic focal points for improving healthcare outcomes in bonny local government area. the study therefore recommends that proper task prioritization ensures that the most critical needs are addressed promptly, leading to improved patient satisfaction and outcomes and healthcare centres introduce structured or electronic queuing systems, especially in high-traffic clinics. introduction effective service delivery has a target to fulfill expectations of a user of an end-product. although, product could be referred to as more of a tangible or physical item, nonetheless, it also encompasses services. a direct interface of service providing, is the relationship between a service rendering american journal of business management, economics and banking volume 38 july2025 p a g e | 32 www.americanjournal.org organization and consumers, the objective is to create a satisfactory relationship thereby meeting expectations. according to grönroos and ravald (2011) high-quality service delivery is an important undertaking for service providers who aim to create and provide value to the respective customers. in the daily lives of many, people go out in search of services needed. agba et al. (2023) were of the opinion that one way of bringing government to the doorsteps of the people at the local level is through effective service delivery in a satisfactory, efficient, effective and adequate manner. modise et al. (2022) state that service delivery expresses precisely the same view about improving the manner in which services are delivered and how such services are delivered effectively and efficiently. legoabe and worku (2017) are of the opinion that municipal service delivery has attracted a lot of public attention, due to recurring service delivery protests across the nation, as well as risks created by structural failures to community health, environmental integrity, and municipal fiscal sustainability (legoabe & worku (2017). service delivery entails the manner in which public services are delivered and more precisely about optimizing the productivity and efficiency of the system by which services are administered (modise et al., 2022). the healthcare sector is one of the key sectors in ensuring the well-being and quality of life for individuals and communities are assured. time management and service delivery are key components of an effective healthcare system. in bonny island, river state, the health centers have particular problems with the provision of quality and timely services to the island's population. proper healthcare provision is a key area in the development of any country because of its direct effects on the health and productivity of the population (pehlivan, 2014). the healthcare system in nigeria faces numerous issues, including poor infrastructure, shortage of personnel, and inefficient provision of services. bonny island, which is situated in rivers state, is no exception to these problems. time management is a crucial aspect in the delivery of healthcare services, given its direct impact on the quality of services rendered to the patients. effective time management enables medical professionals to prioritize, distribute resources, and provide intervention at the right time. however, ineffective time management leads to delays, misdiagnosis, and low patient satisfaction. fatile and boniface (2017) observe that time is always constant irrespective of geographical location. there are 24 hours in a day everywhere on the globe. this is universal. but our activities are numerous; thus, to get all our tasks done within the limited available time is a matter of how we can manage the available time for us. one's life time management can effectively and successfully lead to a better performance, both domestically and professionally. organizational time is among the intangible factors of production that cannot be regained once lost. time is our greatest asset, but we squander it. last but not least, the efficiency and effectiveness of any organization, whether private or public sector significantly depend on the effective utilization of the available scarce resources by employees (ali & baloch, 2010). it must be noted that one of the greatest challenges of the nigerian bureaucracy is under-performance of the civil service. there is never enough time in a day. yet, since we all have 24 hours in a day, a question that comes to mind is, why do some people get so much more out of their time than others, especially in the public service? the answer is simply time management. a popular artist mike okri in a music album titled time na money emphasized the need to turn time into money. the adage "time is money" is no joke. unfortunately, time does not always equal money. in the same manner, the artist further stated that money don't fall from heaven, do good things and money will come" and do not while away your time in gossiping. pehlivan (2014) continues time keeps passing every moment but that does not mean one keeps making money or being productive every time, this is based on how one american journal of business management, economics and banking volume 38 july2025 p a g e | 33 www.americanjournal.org utilizes the available time and what one does with it. the highest achievers manage their time exceptionally well. it is here that tailor (2017) developed "the time and motion study" time and motion study that indicates exactly how long it takes to perform an activity and in what way to do it. this allows organizations to forecast their expected output within a period. khouri (2016) states that management is a prioritysetting and estimation method which allows workers to identify the most significant task and align them with their day-to-day work schedule. "effective time management enables employees to prioritize tasks and make optimum use of time. to achieve this, we should re-analyze activities and replace less important tasks with more productive ones with higher dividends. being objective about time, we realize that the value attached to our work will be based on the time invested, not necessarily the labor or effort itself. effective time management simply comes down to making a deliberate attempt to utilize our time to be as productive as possible and accomplish things." effective time management is crucial for customer service representatives to provide timely, effective, and quality service. it enables them to prioritize tasks, respond to customers in a timely manner, and deliver excellent service, which in turn translates into higher customer satisfaction and loyalty. with time management, customer service representatives can manage resources better, reduce response times, and prevent backlogs, ensuring a seamless customer experience. proper use of time management is everything, mocny (1991) states, in every successful organization. there is array of approaches that organization can employ in order to ensure it has effective and efficient management of time by the employees to enhance its productivity. despite the critical role played by health centers in providing primary healthcare services to the public, effectiveness of time management and service delivery in these centers is raising concerns. specifically, issues such as: long waiting times for patients, slow attention to emergency cases, inefficient use of healthcare resources, poor communication between patients and healthcare providers, low patient satisfaction with services provided, poor time management. past studies such as nweke and osakwe (2024) examine the extent to time management and effective teaching in senior public secondary schools in river state. ananti and dike (2023) examined some of the sources of ineffective time management in the anambra state local government councils which impacts service delivery and also what is to be done by this level of government to foster effective time management. abdel-hussien (2020) ascertain the effect of time management on the success of service organizations, to proceed with the tasks that follow this study and establish the relationship and influence the dimensions of both of the two variables. the findings of these kinds of studies are mixed. to be more precise, previous studies focused on the banking, manufacturing and construction industries at the expense of healthcare sector. it is therefore imperative to investigate the relationship between time management and service delivery. it is against this fact that the aim of this study is to examine time management and service delivery in healthcare service in bonny island of rivers state. 2.0 empirical review elenwo and wike (2024) investigated time management as a correlate of quality service delivery in private secondary schools in rivers southeast senatorial district, rivers state. the research adopted a correlational research survey design. a sample of 400 made up of 25 administrators, 155 teaching, and 220 non-teaching staff respectively made up the study sample size. the sample size of 400 was determined using the taro yamane formula. the data collection instrument were structured questionnaires titled, time management questionnaire and quality service delivery questionnaire. american journal of business management, economics and banking volume 38 july2025 p a g e | 34 www.americanjournal.org the instruments used for data collection were face and content authenticated by two experts from measurement and evaluation and one expert from the department of educational management of the faculty of education at rivers state university. the reliability coefficients of the instruments were 0.80 for the time management questionnaire and 0.78 for the quality service delivery questionnaire, which indicates a reasonable reliability coefficient. the research questions posed were answered using pearson product moment correlation coefficient (ppmcc), while z-ratio was used to test the formulated hypotheses. conclusions drawn from the study exposed a significantly high positive relationship between time scheduling, priority setting, task delegation, and quality service delivery in private secondary schools. richard and ayim (2023) investigate the impact of time management with a focus on effective tools for the survival of a business organization. based on this, three specific objectives, three research questions and three null hypotheses were formulated. theoretical and empirical literature related to the study topic were extensively reviewed and survey research design was adopted by use of questionnaire for data collection. 560 employees which was the population of study were the survey respondents. due to the small size of population, the entire population was used in the data analysis. the survey responses have been studiously analyzed and ascribed to the tenets of the theories. the methodology applied was the quantitative approach. simple percentages were used to analyze research data while one way analysis of variance was used to test the null hypothesis. the study found that the overall regression model is statistically significant. the findings of the study show that the case study companies already implement time management in its daily routines. ambroz (2021) examines past and existent research on time management and its association with job performance and organizational performance. using theorizing method of search, i examined secondary data from several readings and analysis of previous research studies and literature on the topic of this article. the study reviewed past and existing literature with empirical evidence on the time management impact on job and organizational performance using search engines such as: doaj, google scholar, public med, elsevier, sage, and other databases that contained the themes. to test associations between time management and job and organizational performance and to provide arguments for it, the study used pyramid principle method developed by pinto (2002). findings reveal that time management influences personal time behavior, job performance and organizational performance: time management is panacea and not placebo, time management successfully uses organizational resources and implements organization goals time management requires the setting of distinctive time behaviors to impact job and organizational performance. abdel-hussien (2020) identify the effect of time management on the success of service organizations, in order to proceed with the goals that follow this study and find the relationship and influence the dimensions of each of the two variables, which is the first variable time management after the researcher chose the two methods of organization and management of goals, while the second variable was service organizations which includes organizational performance and creative leadership, as the researcher used the descriptive approach after conducting the field study onouha (2019) examined the time management on organizational productivity in nigeria. the study aimed to determine the effect of multitasking, prioritization and procrastination on organizational productivity. relevant theoretical and empirical literatures were examined. this study anchored on theory of time quadrant. the study adopts a descriptive research design. the study is limited to three hundred and twenty (320) employee of nigeria brewers onitsha as the population of the study. the american journal of business management, economics and banking volume 38 july2025 p a g e | 35 www.americanjournal.org entire population was used as the sample size. the data generated were analyzed using descriptive statistics and pearson correlation analysis. the hypotheses formulated were tested using multiple regression analysis. the result of regression analysis shows that multitasking has a significant effect on organizational productivity. procrastination has no significant effect organizational productivity. prioritization has a significant effect on organizational productivity. the study concludes that time management had a significant positive effect on organizational productivity. 2.1 theoretical reviews system theory systems theory, as suggested by ludwig von bertalanffy in 1956, regards organizations as complicated, interdependent systems comprised of a number of components that interact to achieve common goals. instead of considering each component in isolation, it emphasizes the interdependence of all components in the system. changes in one component will affect the other components and the system's behavior as well. effective management entails understanding such interactions and optimizing the entire system rather than separate components. rivers state health care centers are complex systems with patients, healthcare workers, administrative staff, equipment, and protocols. systems theory suggests that time management and service delivery cannot be optimized within silos but must be addressed in an integrative process engaging all interacting factors (okonkwo & ogbonna, 2023). for example, delay in patient care may be a result of poor coordination between laboratory services, clinical staff, and the department of medical records. improving one aspect (e.g., streamlining lab results) but leaving other contributing factors unfilled (e.g., staff availability or scheduling patient) may not have a significant impact. systems theory applied consists of mapping the process of the patient from registration to discharge and figuring out how inefficiency or delay in one subsystem cascades into others. time management strategy is then focused on harmonizing activities among all units to reduce waiting time and increase patient flow. theory of constraints (toc) theory of constraints (toc) by eliyahu m. goldratt in 1984 focuses on discovering and managing the most crucial limiting factor (constraint) that prevents a system from achieving its goals. toc claims that each complex system possesses one or more constraints that limit its overall performance. in order to improve system throughput, the constraint must be discovered and improved or eliminated progressively. toc recommends a five-stage cycle: find the constraint, work on taking advantage of it, subordinate other processes to it, elevate the constraint, and go back to step one for continuous improvement. at rivers state health care centers, application of toc alleviates certain bottlenecks that hinder patient treatment and service delivery. typical limitations include limited consultation rooms, inadequate staffing, inadequate management of medical records, and slow laboratory reports (iwu & obasi, 2023). through toc, the hospital administrators are able to identify which step in the process (for instance, registration, triaging, diagnostics) is constraining patient flow most. for instance, if patient registration is constraining the production of waiting times, the health centre could engage extra staff or introduce electronic registration programs to help execute this activity. this particular use of the constraint to focus on where to allocate scarce resources helps avoid unnecessary spending elsewhere. american journal of business management, economics and banking volume 38 july2025 p a g e | 36 www.americanjournal.org scientific management theory scientific management theory was codified by frederick winslow taylor in 1911, and he emphasizes improving economic efficiency and productivity of labor through systematic observation, measurement, and analysis of work flows. the basic idea was to break work into small fragments, study the best method of performing these tasks, and standardize procedures for eliminating wastes of time and effort. taylor was a firm believer in scientific methods of determining the "one best way" of performing a task, training workers to perform it in the same manner, and closely regulating their efforts to be maximally efficient. in health facilities, more so in rivers state where there are excessive patient waiting times and process delays in public health facilities, scientific management is an effective model of effective time management. inefficiencies such as un-systematized operations, duplicate processes, and uneven staff deployment result in excessive patient queues and poor performance (okonkwo & eze, 2022). by applying taylor's principles, healthcare administrators can scientifically analyze patient care operations, identify bottleneck areas, and re-engineer flows to maximize efficiency. for example, standardizing steps of patient registration, diagnosis, and treatment can minimize variability and non-value-added delays. also, time-motion studies can be employed to determine average time taken by each activity to enable improved scheduling and deployment of staff to critical service points. 3.0 methods research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. the survey research design was employed in this study. this is due to the nature of the study whereby the opinion of people is sampled. the population of this study consist of individuals in 5 health centres in bonny island. this amounted to a population size of eighty (80) staffs but reduced with taro yamen principle because it's more than 30. which amount to sixty-seven (67) sample size. although there are more than five health centers in bonny local government rivers state but for the sake of this study, i picked just 5 because of proximity and finance reason. for the purpose of this study the purposive sampling technique was used because of specific goals: used when researchers want to target specific individuals or groups with particular characteristics. in-depth insights: suitable for qualitative research, case studies, or exploratory studies. working with 5 different health centres in bonny island; we have primary health centre finima, primary health centre ayama peterside’s, primary health centre abalamabie, primary health centre greens iwoma and primary health centre bonny. this five health centres give a total of 67 staffs which includes, doctors, nurses, and health workers. 4.0 data analysis descriptive and inferential statistics was used in this work. descriptive analysis involves procedures used to organize and summarize information in a convenient and understandable form. for the purpose of this study the descriptive statistics specifically mean and standard deviation was used. more so, in testing the relationship between the variables. this employs a comprehensive approach to data analysis to evaluate time management and service delivery in health centers of bonny local government of rivers state. descriptive statistics such as mean, media, standard deviation and graphical representations, provide an initial understanding of the data distribution and central tendencies (gujarati 2009). inferential statistics, specifically regression analysis is used to determine the american journal of business management, economics and banking volume 38 july2025 p a g e | 37 www.americanjournal.org relationship between time management and service delivery. the combination of these two methods ensures a robust analysis, providing insights into how time management influences service delivery in health centers of bonny local government of rivers state. the results are validated through diagnostic tests to ensure the reliability and accuracy of the models used. a total of 67 questionnaires were distributed, and 63 were successfully returned, indicating a response rate of 94%. this high response rate is commendable and suggests a strong level of engagement and cooperation from the respondents. the 6% non-response rate (4 questionnaires) is relatively low and does not significantly threaten the reliability or generalizability of the findings. therefore, the analysis and conclusions of this study are based on the 63 valid responses, which is sufficient for meaningful statistical analysis. 4.1 demographic characteristics of the study this section analyzes the demographic information of staffs at the health care centres surveyed in bonny island of rivers state that include sex, marital status, educational qualifications and age. this intends to provide demographic profile of the staffs at the health care centres in bonny island of rivers state. table 4.1: demographic statistics for gender sex frequency percent valid percent cumulative percent valid male 23 36.5 36.5 36.5 female 40 63.5 63.5 100.0 total 63 100.0 100.0 source: spss output (v23) out of the 63 respondents, 36.5% were male while 63.5% were female. this indicates that female participants were more represented in the study than their male counterparts. table 4.2: demographic statistics for age source: spss output (v23) the age distribution reveals that the majority of respondents (38.1%) were within the 31–40 years age group, followed by 27.0% in the 51–60 years range. respondents aged 41–50 accounted for 17.5%, those above 60 years constituted 9.5%, and the smallest age group was 20–30 years with 7.9%. this suggests that most participants were mature adults, particularly between the ages of 31 and 60. age (in years) frequency percent valid percent cumulative percent valid 20 30 5 7.9 7.9 7.9 31 40 24 38.1 38.1 46.0 41 50 11 17.5 17.5 63.5 51 60 17 27.0 27.0 90.5 above 60 years 6 9.5 9.5 100.0 total 63 100.0 100.0 american journal of business management, economics and banking volume 38 july2025 p a g e | 38 www.americanjournal.org table 4.3: demographic statistics for educational level level of education frequency percent valid percent cumulative percent valid phd 3 4.8 4.8 4.8 masters 21 33.3 33.3 38.1 bsc 29 46.0 46.0 84.1 hnd 3 4.8 4.8 88.9 ond 4 6.3 6.3 95.2 o level 3 4.8 4.8 100.0 total 63 100.0 100.0 source: spss output (v23) most of the respondents were highly educated. specifically, 46.0% had a bachelor’s degree (bsc), and 33.3% held a master’s degree. other qualifications included ond (6.3%), hnd (4.8%), phd (4.8%), and o’level (4.8%). this shows that the study population was largely composed of individuals with tertiary education. table 4.4: demographic statistics for marital status marital status frequency percent valid percent cumulative percent valid single 11 17.5 17.5 17.5 married 39 61.9 61.9 79.4 divorced 13 20.6 20.6 100.0 total 63 100.0 100.0 source: spss output (v23) regarding marital status, 61.9% of respondents were married, 20.6% were divorced, and 17.5% were single. this indicates that a majority of the participants were either currently or previously in marital relationships. 4.2 test of hypotheses this section presents the statistical testing of the five hypotheses formulated in chapter one using multiple regression analysis. the test was conducted with the aid of spss (version 23) software to assess the strength and direction of the relationship between the independent variables queuing system, goal setting, priority setting, work schedule, and multitasking and the dependent variable, prompt service delivery in health centres within bonny local government area of rivers state. each hypothesis was tested at a 0.05 level of significance. american journal of business management, economics and banking volume 38 july2025 p a g e | 39 www.americanjournal.org table 4.5 multiple regression analysis coefficientsa model unstandardized coefficients standardized coefficients t sig. b std. error beta 1 (constant) 5.619 2.312 2.431 .018 queuing_system -.491 .189 -.766 -2.598 .012 goal_setting .031 .218 .051 .145 .886 priority_setting .850 .289 .717 2.943 .005 work_schedule .076 .129 .105 .588 .559 multitasking .111 .229 .137 .486 .629 a. dependent variable: service_delivery source: spss output (v23) the findings of this study provide important insights into how various components of time management influence service delivery in health centres located in bonny local government area of rivers state. firstly, the study revealed that the queuing system has a significant negative effect on service delivery (β = -0.491, p = 0.012). this suggests that poorly managed queuing systems hinder prompt healthcare services. this finding is consistent with the work of afolabi et al. (2018) and ndubuka and emecheta (2017), who emphasized that ineffective queue systems contribute to patient dissatisfaction and service delays in nigerian primary health centres. however, it contrasts with akintayo, et al., (2020) and ezenwa (2016), who found that automated queuing systems enhanced patient flow in urban clinics. secondly, the study found that goal setting has no significant influence on service delivery (β = 0.031, p = 0.886). this indicates that, in the studied context, setting goals does not translate to improved service promptness. this outcome negates the assertion of locke and latham’s goal setting theory (2002), which posits that clear and specific goals enhance performance. it is also in disagreement with the findings of oladipo and ogunyemi (2019) and agbo (2018) who reported that goal setting improved task focus in hospital settings; however, their study was conducted in better-resourced environments, unlike the under-resourced rural health centres in this study. thirdly, the study shows that priority setting has a statistically significant positive effect on service delivery (β = 0.850, p = 0.005). this suggests that health workers who effectively prioritize tasks are more likely to deliver prompt services. this result aligns with okonkwo (2020) and chukwuma and amadi (2021), who found that prioritization improves efficiency in resource-constrained health facilities, and also supports suleiman and yahaya (2017) and ewhrudjakpor (2013), who emphasized the role of effective task management in reducing delays in rural clinics. fourthly, it was observed that work schedule does not have a significant effect on service delivery (β = 0.076, p = 0.559). this implies that having a work schedule alone is not enough to guarantee timely service delivery. this finding aligns with chukwu et al. (2019) and adamu and olanrewaju (2019), who noted that in rural areas, frequent deviation from work schedules due to staff shortages undermines their effectiveness. conversely, it contradicts adebayo (2015) and obioma and adeyemi (2016), who found that structured work schedules improved efficiency in lagos-based hospitals. finally, the study discovered that multitasking does not significantly affect service delivery (β = 0.111, p = 0.629). this suggests that although health workers may handle multiple tasks, it does not necessarily lead to better service timeliness. this outcome agrees with the work of ibrahim and lawal american journal of business management, economics and banking volume 38 july2025 p a g e | 40 www.americanjournal.org (2020) and ololube (2016), who found that excessive multitasking often results in reduced task quality and staff burnout. however, it contradicts the findings of omotola (2018) and ayeni and popoola (2017), who reported that multitasking improved service speed in private urban clinics. summary and conclusion the study concluded that time management practices have a meaningful influence on service delivery in health centres within bonny local government area, rivers state. specifically, priority setting was found to have a significant positive impact on prompt and efficient healthcare delivery, emphasizing the importance of health workers being able to distinguish between urgent and less urgent tasks. conversely, the queuing system exhibited a significant negative impact, suggesting that poor queue management contributes to delays and patient dissatisfaction, thereby underscoring the need for system restructuring. however, goal setting, work scheduling, and multitasking showed statistically insignificant effects on service delivery. this may reflect a disconnect between planning and practical implementation or a lack of supporting systems necessary to make these strategies effective. despite these limitations, the overall model demonstrated a moderate positive relationship between time management variables and service delivery, explaining about 34% of the variation in healthcare outcomes. this indicates that while time management plays a role, other factors such as staffing, resource availability, patient volume, and leadership also significantly affect service efficiency. the study, therefore, concluded that improving service delivery in health centres requires the strategic application of effective time management practices, particularly prioritizing tasks and improving queuing systems. for these strategies to be impactful, they must be supported by institutional commitment, capacity building, and ongoing performance monitoring. recommendation the study recommended that health centres adopt structured prioritization of tasks to address urgent needs promptly; equip staff with multitasking skills to handle responsibilities without compromising care; implement structured or electronic queuing systems; involve staff in collaborative goal setting and periodic reviews; and enforce strict adherence to duty schedules through effective monitoring to reduce lateness and absenteeism. references 1. abdel-hussein, w. w. 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(2017). the efficiency of multitasking among health workers in southwestern nigeria. west african journal of public health, 2(4), 34–42. 11. chukwu, e., onwuegbuzie, a., & nwankwo, u. (2019). workforce scheduling challenges in rural health centres of nigeria. nigerian journal of public health, 21(3), 198–207. 12. chukwuma, s., & amadi, e. (2021). the role of task prioritization in public health facilities. international journal of healthcare and development, 11(2), 90–100. 13. elenwo, p. m., & wike, r. e. (2024). time management as a correlate of quality service delivery in private secondary schools in rivers south-east senatorial district, rivers state. eureka: journal of educational research, 3(1), 28-35. 14. ewhrudjakpor, c. (2013). improving maternal health through effective service prioritization in the niger delta. journal of community medicine and health education, 5(1), 88–95. 15. ezenwa, c. j. 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(2022). examining the impact of poor governance on voter turnout during the 2021 local government elections in the north west province. journal of public administration, 57(4), 758-769. 22. ndubuka, j., & emecheta, c. (2017). electronic queuing systems and patient flow efficiency in health centres. journal of medical informatics in developing countries, 5(2), 67–74. american journal of business management, economics and banking volume 38 july2025 p a g e | 42 www.americanjournal.org 23. nweke, e. o., & osakwe, m. a. (2024). time management and effective teaching in senior public secondary schools in river state. african journal of humanities and contemporary education research, 15(1), 203-224. 24. obioma, d., & adeyemi, k. (2016). work shifts and service efficiency in lagos state hospitals. journal of health systems and management, 3(4), 18–29. 25. okonkwo, a. c., ogbonna, c., umunnah, j. o., & chukwuemeka, u. (2023). knowledge and attitude on the role of physiotherapy in the intensive care unit among other health care professionals in south east, nigeria. journal of biomedical investigation, 11(2), 23-37. 26. okonkwo, g. a., & eze, j. n. (2022). entrepreneurial skills: a panacea for the retirees’ sustainability. nigeria journal of home economics (issn: 2782-8131), 10(7), 59-67. 27. okonkwo, k. c. (2020). priority management and service effectiveness in rural nigerian clinics. health policy and development journal, 19(1), 56–64. 28. oladipo, s. o., & ogunyemi, o. (2019). goal setting and task performance among healthcare workers in nigerian tertiary hospitals. journal of organizational psychology, 13(1), 41–53. 29. ololube, n. p. (2016). multitasking and healthcare delivery in understaffed clinics: evidence from nigeria. international journal of health management, 8(3), 101–110 30. omotola, a. m. (2018). multitasking and service delivery in urban private hospitals. nigerian journal of health administration, 10(2), 88–97. 31. pehlivan, c., augusto, v., & xie, x. (2014). dynamic capacity planning and location of hierarchical service networks under service level constraints. ieee transactions on automation science and engineering, 11(3), 863-880. 32. richard, t. b., & ayim, a. d. (2023). time management: an effective tool for the survival of a business organization. journal of quality in health care & economics, issn, 2642-6250. 33. suleiman, a., & yahaya, b. (2017). task management and service delays in community healthcare centres. nigerian health research journal, 5(4), 112–121. american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 50 www.americanjournal.org improving the financing of higher education institutions in uzbekistan rakhmatullaev jamshid murodillayevich independent researcher of tashkent state university of economics, tashkent, uzbekistan a b s t r a c t k e y w o r d s this article comprehensively analyzes the issues of improving the financing system of higher education institutions in the republic of uzbekistan. the large-scale reforms being carried out in the field of education in the country require increasing the efficiency of financial mechanisms in training personnel in line with the requirements of the modern economy. the article first of all analyzes the current financing system in uzbekistan and assesses its historical evolution, legal and regulatory framework and current state. the advantages and disadvantages of financing through funds allocated from the state budget, targeted programs, grant and contractbased forms of education are indicated. the experience of foreign countries, including finland, germany, south korea and the usa, is also analyzed. diversified models of financing in these countries and forms of public-private partnership are considered as promising solutions for uzbekistan. higher education, financing, human capital, investment, market mechanisms, innovative economy, graduating youth, heis, system of selffinancing. introduction in the past five years, uzbekistan has taken important steps to invest in human capital. fundamental reforms have been implemented at all levels of education. a number of tasks have been set to ensure the financial independence and sustainability of higher education institutions, strengthen their material and technical support, including “gradually transitioning higher education institutions to a system of self-financing, ensuring financial stability, improving the remuneration system, introducing effective and transparent financing mechanisms, taking into account the needs of the sectors of the economy for personnel, as well as in the future, gradually transitioning to a system of independent determination of payment-contract amounts for bachelor’s degree programs (master’s degree programs) based on the rating of higher education institutions and the level of their cost recovery,”1 as well as identifying and taking measures to minimize financial risks when investing in higher education innovations require research in this area. 1 “concept for the development of the higher education system of the republic of uzbekistan until 2030.” decree of the president of the republic of uzbekistan no. pd-5847 dated october 8, 2019. www.lex.uz http://www.lex.uz/ american journal of business management, economics and banking volume 38 july2025 p a g e | 51 www.americanjournal.org material and method scientific research on the prospects for development of innovative and investment processes of higher education institutions with the widespread use of market mechanisms, and on improving the financing of higher education in the context of the transition to an innovative economy, is being conducted at leading scientific centers and higher education institutions around the world, including: ecole hotelmère de lausanne (switzerland), oxford brookes university (great britain), cornell university, harvard university (usa), les roches international school of hotel management (spain), blue mountains international hotel management school (australia), university of surrey (great britain), lomonosov moscow state university (russia), tashkent state university of economics, tashkent institute of finance (republic of uzbekistan) and other higher education institutions. analysis and results the experience of singapore and south korea, which have achieved great success in development today, has shown that in order for a country to develop economically, it is necessary to educate talented people. neglecting to invest in human capital can significantly reduce a country’s competitiveness. in most cases, governments, striving to ensure economic growth, focus on investing in physical capital building magnificent bridges, new roads, modern airports and other infrastructure. however, they approach investing in human capital from a different perspective. we can measure the importance of human capital from an economic point of view by the income of people who have received more education. studies have shown that each additional year of education increases a person’s income by an average of 10 percent. the quality of education is also important. for example, replacing a low-qualified teacher in a separate class of an elementary school in the united states with a mid-level specialist allows students to earn up to $ 250,000 in total income over their entire lives. economists have estimated that when individual investments in human capital are aggregated, the gap between investment in human capital and per capita income in different countries ranges from 10 to 30 percent. the following table summarizes the significant changes that have taken place in the higher education system over the past five years. american journal of business management, economics and banking volume 38 july2025 p a g e | 52 www.americanjournal.org important changes in the higher education system in the last five years2 2020 2021 2022 2023 2024 1. 10 heis have switched to a selffinancing system. 2. in order to strengthen the material and technical base of heis, $22 million in foreign investment funds have been attracted. 3. the number of joint educational programs organized in heis of the republic has reached 58. 4. the level of coverage of graduating youth with higher education has been increased to 25%. 5. for the first time, qr-code diplomas were issued and the opportunity to receive diplomas online was created. 6. specialized technical schools for oriental languages have been established in namangan and khorezm regions. 1. 5 pedagogical institutes, 4 branches of foreign universities, and the “new uzbekistan” university were established. 2. admission to universities specializing in foreign languages was doubled, and admission on the basis of state grants was tripled. 3. a new system of educational credit allocation was introduced. 4. the practice of dual education in the vocational education system began. 5. presidential grants were introduced for the 200 young people who scored the highest points in the entrance exams. 6. departments for managing the “compliancesupervision” system were established in universities. 1. digital transformation has begun in all state universities and the concept of digital campuses has been developed. 2. 12 new universities, including private and international universities, have been launched. 3. admission parameters for parttime, evening and distance learning have been significantly increased. 4. online master’s and distance phd programs have been introduced. 5. more than 1,000 students have had the opportunity to study abroad through academic mobility programs. 6. a system of financing student startups has been launched through the “u-start” program. 1. 20 heis have switched to a selffinancing system and the level of economic independence has increased. 2. the assessment system for state heis has been strengthened based on national and international rating systems. 3. 8 new technoparks and incubator centers have been established. 4. all heis have introduced the practice of assessing according to cefr standards, which requires a level of english language proficiency. 5. online dissertation defenses for doctors of science (dsc) and doctors of philosophy (phd) have been launched. 6. specialized faculties for stem education have been established in 7 state heis. 1. the “artificial intelligence in education” program was implemented across the republic, ai centers were opened in 10 universities. 2. 30% of graduating students were covered by higher education. 3. a visa-free educational tourism initiative was launched for international students, and special international campuses were created in 5 universities. 4. a single student id card system was introduced and integrated into campus, transport, library and other services. 5. student financing processes were automated through an electronic contract and digital grant system. 6. 15 new vocational schools and technical schools began operating based on updated curricula. this table highlights the most important changes in the higher education system in each of the last five years. it is worth noting that significant changes in our topic will take place in 2023, namely the transition of 10 educational institutions to a self-financing system, the absorption of $ 34 million in foreign investment funds to strengthen the material and technical base of higher education institutions. another important change implemented in 2021 is the resolution of the cabinet of ministers of the republic of uzbekistan no. 563 dated september 9, 2021 on measures to increase the level of student housing in higher educational institutions of the republic. this resolution plans to build student housing in the regions of the republic on the basis of publicprivate partnership, according to which 50 percent of the costs associated with the maintenance and operation of student housing will be covered from the state budget, but not more than the amount of 2 grouped by the author based on research. american journal of business management, economics and banking volume 38 july2025 p a g e | 53 www.americanjournal.org funds spent by state higher educational institutions on maintaining student housing of the corresponding capacity. this resolution also provides that state higher educational institutions are allowed to partially finance public-private partnership projects for the construction of educational and social infrastructure facilities from the extra-budgetary funds of the institution, in accordance with the law “on public-private partnership”. the decision envisages the implementation of important changes, such as the allocation of additional staff in state higher education institutions, the tax exemption of income received by individuals from the activity of renting housing to students, the introduction of additional household services in student residences, the gradual transfer of student residences to the self-financing system due to the creation of conditions for healthy eating and other types of services. this resolution stipulates the construction of 228 student dormitories with a total capacity of 91,200 students, with a total of 400 beds, in the city of tashkent and the regions of our republic, of which 166 are planned to be built on the territory of higher educational institutions and 62 in the vicinity of higher educational institutions3. as we noted in the previous paragraphs of our study, the concept4 for the development of the higher education system of the republic of uzbekistan until 2030 is a very important document in improving the financing of higher education, which sets out a number of tasks to strengthen the material and technical base of heis in our country and implement changes in the financing system. in particular, these include the development of public-private partnerships in the field of higher education, the gradual introduction of the “university 3.0” concept, which envisages the integral connection of education, science, innovation and commercialization of research results in higher education institutions, the widespread attraction of foreign investments, the expansion of the scope of paid services and the establishment of technoparks, foresight, technology transfer, startup, and accelerator centers in higher education institutions through other extra-budgetary funds, and their transformation into scientific and practical institutions that study and forecast the socio-economic development of relevant sectors, industries and regions, increasing the investment attractiveness of higher education, attracting foreign educational and scientific technologies, improving the infrastructure and material and technical base of higher education institutions, including through the widespread attraction of preferential funds from international financial institutions, and gradually transferring them to a selffinancing system and ensuring their financial stability. this concept also lists a number of problems in the scientific and innovative sphere, material and technical base and financing system of higher education institutions. in particular: the scientific activity of higher education institutions is not organized based on the prospects for the socio-economic development of the regions, and the activity of forecasting innovative development based on analyses has not been established; the effectiveness of innovative activity, wide implementation of research results into practice, commercialization of scientific developments, and attraction of talented young people to scientific and 3 resolution of the cabinet of ministers of the republic of uzbekistan no. 563 dated september 9, 2021 “on measures to increase the level of housing for students in higher educational institutions of the republic.” www.lex.uz 4 concept for the development of the higher education system of the republic of uzbekistan until 2030, approved by the decree of the president of the republic of uzbekistan no. pd-5847 dated october 8, 2019. www.lex.uz http://www.lex.uz/ http://www.lex.uz/ american journal of business management, economics and banking volume 38 july2025 p a g e | 54 www.americanjournal.org research work is not sufficient, and a strong integration of education, science and production is not ensured; research work is not aimed at solving existing problems in the social sphere and economic sectors; effective mechanisms for stimulating the activities of professors, teachers, researchers and young scientists engaged in scientific and research work have not been created; the capacity of student housing, libraries, training workshops, laboratories, sports and recreation facilities and social infrastructure facilities does not meet the current needs, most of them do not have a material and technical base that meets today’s requirements; the level of equipment of higher educational institutions with modern educational and scientific laboratories is insufficient, the share of educational laboratory equipment that meets international standards is only 10 percent, while the educational process is not sufficiently provided with laboratory materials (reagents, chemical containers, accessories, biological materials and other objects); the main part of the financial expenses of higher educational institutions is spent on salaries, and insufficient funds are allocated to the renovation of educational and scientific laboratories, repair of buildings and structures; the existing student housing and social infrastructure facilities are not adapted to the needs of foreign students5. conclusion in recent years, reforms in the financing system of higher education institutions in uzbekistan are aimed at adapting the education sector to the requirements of a market economy, ensuring financial independence and improving the quality of education. the traditional system of financing from the state budget is being gradually abandoned, and a diversified financing mechanism is being formed in its place through self-financing, educational loans, grants, private sector investment, and attracting foreign projects. in particular, by transferring heis to a self-financing system, significant progress is being made in providing them with financial independence, expanding their internal capabilities and improving the quality of education. at the same time, social justice and access to education for all strata are being ensured by improving the mechanisms of educational loans and state grants. in conclusion, reforms in the financing of higher education institutions serve as an important factor not only in ensuring the economic stability of the education sector, but also in turning it into an internationally competitive and innovative system. the consistent and systematic continuation of reforms in this direction will further improve the quality of education in the future and lay the groundwork for taking a strong place in the global education arena. references 1. resolution of the president of the republic of uzbekistan no. pr-2909 “on measures for the further development of the higher education system” – april 20, 2017. 2. decree of the president of the republic of uzbekistan no. pd-6108 “on approval of the national program for the further development of the education and upbringing system in the republic of uzbekistan” – november 6, 2020. 5 concept for the development of the higher education system of the republic of uzbekistan until 2030, approved by the decree of the president of the republic of uzbekistan no. pd-5847 dated october 8, 2019. www.lex.uz http://www.lex.uz/ american journal of business management, economics and banking volume 38 july2025 p a g e | 55 www.americanjournal.org 3. resolution of the cabinet of ministers no. 820 “on measures to improve the system of financing the activities of higher educational institutions” – december 31, 2021. 4. akhmedov, a.k. (2022). reforms and prospects in the system of financing higher educational institutions in uzbekistan. // economy and education, no. 4. 5. yunusova, n.m. (2021). the importance of introducing a self-financing system in higher educational institutions. // journal of educational reforms, no. 3. 6. joint report of unesco and the cabinet of ministers of the republic of uzbekistan: “higher education financing in uzbekistan: policy, practice and reform directions” – 2020. 7. ministry of higher education, science and innovations of the republic of uzbekistan. annual analytical reports on the activities of higher education institutions (2020–2023). 8. world bank. 2021. “modernizing higher education in uzbekistan: current trends and financial sustainability”. tashkent: wb uzbekistan office. 9. kodirov, sh.sh. 2023. modern methods of financing higher education institutions. – tashkent: economic development publishing house. 10. mahmudov, i.r. 2022. innovative education finance: theory and practice. – tashkent: “science and technology” publishing house. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 102 www.americanjournal.org improving of the accounting and internal control in budget organizations zilola azizova researcher of tashkent state university of economics, zilolaazizova85@gmail.com, orcid:0009-0000-6025-2275 a b s t r a c t k e y w o r d s the article theoretically substantiates the necessity and interrelation of accounting and internal control in budgetary organizations of the road sector. the legal bases of the organization of accounting and internal control in budgetary organizations are studied. important directions of ensuring internal control through the organization and maintenance of accounting in budgetary organizations of the road sector are revealed. proposals for improving internal control through the organization and maintenance of accounting in budgetary organizations are formulated. accounting service, accounting, internal control, accountability, reporting. introduction in the context of increasing global competition in the world, special attention is paid to ensuring the accountability of the public sector accounting system for the targeted and targeted spending of budget funds, as well as the openness of information about them. according to the report "public sector financial reporting index for 2021" published by the international federation of accountants (ifac), 57% of countries that have implemented the accrual method in global accounting use international public sector accounting standards (ipsas)1. recommendations are being developed for governments to expand the role of public sector accounting and the internal control system in ensuring the continuity of distribution, execution and control of funds in the budget system. in uzbekistan, work is underway to ensure accountability and openness of spending by bringing the accounting and internal control system in budgetary organizations in line with international accounting standards in the public sector. in the road system, which is the object of the study, the direction of funds is determined “for the purpose of construction and reconstruction of roads, bridges and overpasses in 2024, major and current repairs, storage, landscaping, prevention and elimination of consequences of natural disasters, preservation of the committee and its unstructured organizations in total 5,484,823.6 million soums"2. in particular, the tasks of assessing the current state of the organization and accounting in the organizations of the system, studying the state of functioning of the 1 international public sector financial accountability index 2021 status report 2 https://lex.uz/en/docs/6707765#6710514 https://lex.uz/en/docs/6707765#6710514 american journal of business management, economics and banking volume 36 may2025 p a g e | 103 www.americanjournal.org existing internal control system, identifying problems associated with the accounting and internal control system, as well as developing scientific proposals and recommendations for their elimination. research methods the article used abstract logical thinking, comparison, observation and analysis, induction and deduction, methods of synthesis, monographic research, systems approach, statistics, economic analysis. literature review research by foreign economists on the study of the accounting and internal control system in budgetary organizations was also reflected in scientific papers, brochures and articles. in particular, these include jorge de jesus, jsb eirado, jens heiling, o. mitina, t. poleshchuk, m. ryabova3. uzbek economists such as n. abdusalomov, s. mekhmonov, a. ostonokulov, z. khamidova studied the problems of accounting and financial reporting in budgetary organizations, as well as the development of theoretical and methodological foundations of internal audit4. it should be noted that in the scientific works of the above-mentioned economists, theoretical and practical problems of improving the accounting and internal control system in budgetary organizations of the highway system as a separate object of research have not been studied. at the same time, the adoption of current regulatory legal acts related to the reform of sources of financing the highway system, changing them in accordance with the conditions of economic modernization entails the need to conduct in-depth scientific research in this area. analysis and results the procedure for expanding sources of funding for budget organizations by type of activity through the production and sale of goods (works, services), leasing temporarily unused premises and other state property by budget organizations to other organizations, and additional income from the provision of sponsorship (gratuitous) assistance to budget organizations by legal entities and individuals has been established5. organizations of the highway system draw up estimates of revenues and expenditures of budgetary and extra-budgetary funds based on the regulation "on the procedure for drawing up, approving and registering expense estimates and state tables of budget organizations and recipients of budget funds". it has been established that the revenue part of the estimate of revenues and expenditures of budget organizations "is determined based on the volume of receipts of extra-budgetary funds and the areas of 3 ma jorge de jesus, jsb eirado. relevance of accounting information to public sector accountability: a study of brazilian federal public universities. tékhne review of applied management studies. 2012.; jens heiling (2020) contributing to the global economy. public sector accounting a discipline in its own right. ernst & young gmbh, stuttgart, germany. september 29, 2020.; митина о.в. бухгалтерский учет в бюджетных организациях. учебное пособие. 2020 г. 138 стр.; полещук т.а., маслова т.с. контроль и ревизия в бюджетных учреждениях. учебное пособие. –м.: "инфра-м", 2017. 227 с.; рябова м.а. и друг. бюджетный учет и отчетность: учебное пособие / ульяновск: улгту. 2010. 4 абдусаломова н.б. ички назорат методологиясини такомиллаштириш. монография. –т.: «тдиу», 2023, 384 б.; меҳмонов с. бюджет ташкилотларида бухгалтерия ҳисоби: назария ва амалиёт. –т.:»iqtisod va moliya». 2016.-136 б.; остоноқулов а. «бюджет ташкилотларининг бюджетдан ташқари маблағлари ҳисоби ва ҳисоботи методологиясини такомиллаштириш» монография. т: внешинвестпром нашриёти, 2021, 208 бет.; хамидова з.у. бюджет ташкилотларида ички аудит ва молиявий назорат хизматлари фаолиятини самарали ташкил қилиш масалалари. монография. – т.: “vneshinvestprom” 2021. 183 б. 5 resolution of the cabinet of ministers of the republic of uzbekistan dated september 3, 1999 no. 414 "on improving the procedure for providing budgetary organizations with funds." american journal of business management, economics and banking volume 36 may2025 p a g e | 104 www.americanjournal.org use of these funds, indicating the source of receipts in the estimates of revenues and expenditures, and the revenue part of the estimate of revenues is formed." from the balance of funds at the beginning of the current year6. according to the directive "on accounting in budgetary organizations" and the budget accounting standard (sbu no. 2) "chart of unified accounts", the accounting procedures in the organizations of the highway system are presented in the form of bilateral transactions on accounts, sub-items, preliminary and consolidated accounting documents, and accounting registers. according to the "regulation on the circulation of documents and document flow in accounting", the organizations of the highway system have systems regulating the documentation of transactions related to accounting objects. according to standard no. 1 of budget accounting "accounting policy", among all budgetary organizations, the organizations of the highway system must form an accounting policy in order to implement their estimates, regulate the internal control system in the conduct of financial and economic activities and implement effective management by forming systematized accounting information. accounting policy is applied during the financial year as a set of certain methods, bases, allowances, rules and techniques used by budgetary organizations in maintaining budgetary accounting and preparing financial statements in accordance with established principles7. accounting policy covers all issues related to accounting processes, i.e. it is necessary for budgetary organizations to ensure the purposefulness of the accounting system. a well-structured accounting policy indicates the high qualifications of the chief accountant. this, in turn, will have a positive effect on the economic activities of the budgetary organization in the future. accounting policy is developed on the basis of the laws of the republic of uzbekistan, decrees of the president, resolutions of the cabinet of ministers, regulations and standards related to the scope of activities of the accounting entity. when developing an accounting policy, special attention is paid to its organizational, technical and methodological aspects. according to the order of the head of the accounting entity, the accounting policy will be developed at the end of the reporting year and approved for the next financial year. in accordance with this order, the following provisions are also approved at the same time: job descriptions for accounting employees; working chart of accounts of accounting, reflecting synthetic and analytical accounts; procedure and schedule of document flow; methods of valuation of property and liabilities; procedure of write-off of assets; procedure and terms of inventory; technology of processing of accounting information and other necessary documents. development of accounting policy and its structural construction can have common aspects for all subjects of accounting. however, there are different aspects of the activities of economic entities with organizations of the highway system from the point of view of accounting objects, funds, procedure of use of funds and methods of reflection of income and expenses on the account (table 1). 6 regulation "on the procedure for drawing up, approving and registering budgetary organizations and recipients of budgetary funds, estimates and staffing schedules" (december 15, 2014, list number no. 2634) budgetary accounting standard of the republic of uzbekistan (sbu no. 1) "accounting policy" (december 27, 2016, list number no. 2853) american journal of business management, economics and banking volume 36 may2025 p a g e | 105 www.americanjournal.org table 1 distinctive aspects related to the formation of accounting policies for accounting entities8 business entities organizations of the road system accounting objects long-term assets; current assets; liabilities; private equity; financial results; expenses; income. non-financial assets; financial assets; accounts receivable; accounts payable; financial results; expenses; income. application of methods of reflecting income and expenditure on the account calculation method cash-based accounting method sources of funding own funds; attracted funds. budget funds; funds of the republican road fund; funds of the fund for development and support of the activities of the committee of highways; funds of the development fund; other extra-budgetary funds. there are various aspects related to the development of accounting policies in business entities and organizations of the highway system. in this regard, it is justified that a separate standard for the development of accounting policies for business entities was developed. however, there are various aspects in terms of accounting objects, funds, the procedure for using funds and methods of reflecting income and expenses on the account of organizations of the highway system. from the above, it can be said that a separate accounting policy related to bookkeeping should be developed in organizations of the highway system, and for this purpose a standard concerning the accounting policy should be adopted. standard of sbu no. 1 "accounting policy" is designed to increase the level of reliability of financial statements of organizations of the highway system and their financial statements of a given periodicity, as well as the level of comparison with the financial statements of other organizations of the highway system. accounting policies are developed by organizations of the highway system in order to select one of several mutually exclusive methods of accounting provided for by budget legislation. it should be used when selecting and applying accounting policies in standard organizations of the highway system, accounting for changes in accounting policies and preparing financial statements. inventory, which is considered an important accounting method in the implementation of financial and economic activities in organizations of the highway system, is of particular importance. inventory in organizations of the highway system serves to ensure the reliability of accounting information, maintain the quality of material assets and control over the state of liabilities. 8 prepared by the author american journal of business management, economics and banking volume 36 may2025 p a g e | 106 www.americanjournal.org inventory is one of the activities that are constantly being introduced into the practice of organizations of the highway system, and it is relevant to study its specific aspects and theoretical and methodological foundations based on the tasks set before it, based on current demand. although in theory inventory is considered an element of control, in practice control is carried out in the process of inventory. in organizations of the highway system, inventory is carried out on a planned basis by types of accounting objects for the following periods (table 2). table 2 frequency of planned inventory by accounting objects in organizations of the highway system9 accounting objects period of planned inventory fixed assets at least once every two years library collections once every five years intangible assets at least once every two years inventory at least once a year fuels and lubricants, food products once a quarter cash, cash documents, assets and forms on a fixed account once a month organizations of the road system can conduct a full inventory on a planned basis before preparing the annual financial statements, having established it in the accounting policy. in addition to the plan, when renting, buying, selling property, revaluing fixed assets and marketable assets, when changing financially responsible persons, theft or abuse, natural disasters, fires, catastrophes or emergency situations, when terminating (reorganizing) the activities of organizations of the road system before preparing the liquidation (separation) balance sheet and in other cases provided for by law. in the process of forming the accounting policy, the standard of budgetary accounting of the republic of uzbekistan (sbu no. 1) "accounting policy" was used (registered by the ministry of justice of the republic of uzbekistan under registration number 2853 dated december 27, 2017). the accounting policy is approved by the order of the chairman of the committee and the heads of its territorial divisions and is consistently applied from year to year. the accounting policy ensures that the financial statements are prepared on the basis of all applicable standards of budgetary accounting. financial statements, in the absence of special requirements: a) must be relevant information that meets the needs of its users; b) be reliable objectively reflect all the results and financial status of the activities of the committee and its territorial divisions, reflect the economic essence of events and operations; c) be impartial and non-binding; g) be complete (finished) the committee and its territorial divisions must fully reflect all facts of economic activity. accounting in the committee and its territorial divisions is maintained electronically in the uzasbo software package and financial statements are generated. business transactions related to the reporting period, if the documents confirming their implementation have not been received, a corresponding primary document is drawn up and reflected in the accounting records. 9 issue 19, entitled “organization and transfer of inventory,” was prepared by the author based on the national accounting standards. american journal of business management, economics and banking volume 36 may2025 p a g e | 107 www.americanjournal.org the procedure and terms for conducting an inventory in the committee and its territorial divisions are carried out in accordance with the national accounting standard of the republic of uzbekistan (nas no. 19) "organization and transfer of inventory". the main objectives of the inventory are as follows: determining the actual availability of property; comparing existing property with accounting data in reality; verifying the correctness of reflecting liabilities on the account. in the following cases, the transfer of inventory is mandatory: upon leasing, purchasing, selling property, as well as in cases stipulated by law, during the transformation of the center (denationalization); before drawing up the annual financial report. the number of inventories in the reporting year, the date of their transfer, the list of assets and liabilities are determined by the chairman of the committee and the heads of territorial departments. in budgetary organizations in the road committee system, which is considered as the object of the study, there are a number of problematic situations related to the accounting and internal control system. these problems are related to the specifics of the industry, funding areas, parallel functioning of business entities with budgetary organizations in the system, the manifestation of system organizations simultaneously as a budget employee, a distributor of budgetary funds, a budget organization and a recipient of funds from the budget. in order to positively resolve the above-mentioned controversial circumstances, improve the accounting and internal control system in budgetary organizations in the road committee system, it is necessary to carry out the following set of works. first of all, it is necessary to transfer the funds of the development fund that were unused during the financial year by the committee and its territorial divisions, without redistributing the funds for their intended purpose until the beginning of the next financial year. thus, this serves to ensure that during the financial year the committee and its territorial divisions purposefully use the funds of the development fund within the framework of the income and expenditure estimate. secondly, it is necessary to implement in practice a standard accounting policy in the committee and its territorial divisions, which summarizes the rules for organizing and maintaining accounting of financial and economic activities and preparing financial statements. the implementation of this accounting policy in practice in the committee and its territorial divisions serves to strictly follow the job descriptions of the accounting service employees, accurately determine the procedure and timing of the inventory, simplify the process of summarizing data by confirming the content of synthetic and analytical accounts, and ensure internal control. thirdly, it is necessary to develop a standard regulation on the internal control system of the committee and its territorial divisions. the implementation of this standard regulation in practice in the committee and its territorial divisions makes it possible to properly store assets, economically and effectively use material and financial resources, comply with the requirements of current legislation and internal documents, fulfill established plans, ensure the completeness and correctness of accounting documents, financial reporting and management information, identify risks when they arise, analyze and make the necessary decisions. fourthly, it is advisable to formulate job descriptions for the employees of the accounting service of the committee and its territorial departments. as a result, this serves to accurately define the duties of the employees of the accounting service of the committee and its territorial departments within the framework of the positions they hold, to ensure accountability and american journal of business management, economics and banking volume 36 may2025 p a g e | 108 www.americanjournal.org responsibility of the accounting staff, to increase the reliability of accounting information and financial reporting. conclusions as a result of the study of the accounting and internal control system in budget organizations, the following important conclusions and proposals were formulated: 1. it is important to form a standard accounting policy in the committee for highways and its territorial divisions, which summarizes the rules for organizing and maintaining accounting of financial and economic activities and preparing financial statements. the standard accounting policy serves to strictly follow the job descriptions of the accounting service employees of the committee and its territorial divisions, accurately determine the procedure and timing of inventory, simplify the process of data summarization by confirming the content of synthetic and analytical accounts, ensure internal control and reporting based on approved data. 2. the committee for highways and its territorial divisions intend to develop a standard regulation on the internal control system. this standard regulation provides for the correct storage of assets by the structural divisions of the committee and its territorial departments, economical and effective use of material and financial resources, compliance with the requirements of current legislation and internal documents, implementation of established plans, ensuring the completeness and correctness of accounting documents, financial reporting and information management, identifying risks in the event of risks, analysis and decision-making. 3. in the accounting policy of the road committee and its territorial departments, it is necessary to extend the established daily standards by 15 days in order to determine the balances at the end of the financial year for agricultural and office supplies. due to this, the committee and its territorial departments create the possibility of planning and targeted financing at the expense of budgetary and extra-budgetary funds based on the amount of the expense item "business and office supplies". 4. in the road committee and its territorial departments, it is necessary to take into account business and office supplies received at the expense of budgetary extra-budgetary funds in separate working accounting accounts. thanks to this, the committee and its territorial divisions create the opportunity to generate analytical accounting information on the movement of business and office supplies by funding sources. references 1. resolution of the cabinet of ministers of the republic of uzbekistan dated september 3, 1999 no. 414 "on improving the procedure for providing budgetary organizations with funds." 2. regulation "on the procedure for drawing up, approving and registering budgetary organizations and recipients of budgetary funds, estimates and staffing schedules" (december 15, 2014, list number no. 2634). 3. budgetary accounting standard of the republic of uzbekistan (sbu no. 1) "accounting policy" (december 27, 2016, list number no. 2853). 4. issue 19 entitled "organization and transfer of inventory" was prepared by the author based on the nas. 5. international public sector financial accountability index 2021 status report. american journal of business management, economics and banking volume 36 may2025 p a g e | 109 www.americanjournal.org 6. ma jorge de jesus, jsb eirado. relevance of accounting information to public sector accountability: a study of brazilian federal public universities. tékhne review of applied management studies. 2012. 7. jens heiling (2020) contributing to the global economy. public sector accounting a discipline in its own right. ernst & young gmbh, stuttgart, germany. september 29, 2020. 8. mitina o.v. accounting in budgetary organizations. tutorial. 2020. 138 p. 9. poleshchuk t.a., maslova t.s. control and audit in budgetary institutions. tutorial. m.: "infra-m", 2017. 227 p.; ryabova m.a. and friend. budgetary accounting and reporting: tutorial / ulyanovsk: ulstu. 2010. 10. абдусаломова н.б. ички назорат методологиясини такомиллаштириш. монография. –т.: «тдиу», 2023, 384 б. 11. меҳмонов с. бюджет ташкилотларида бухгалтерия ҳисоби: назария ва амалиёт. – т.:»iqtisod va moliya». 2016.-136 б. 12. остоноқулов а. «бюджет ташкилотларининг бюджетдан ташқари маблағлари ҳисоби ва ҳисоботи методологиясини такомиллаштириш» монография. т: внешинвестпром нашриёти, 2021, 208 бет. 13. хамидова з.у. бюджет ташкилотларида ички аудит ва молиявий назорат хизматлари фаолиятини самарали ташкил қилиш масалалари. монография. – т.: “vneshinvestprom” 2021. 183 б. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 102 www.americanjournal.org causes of the emergence of non-performing loans in commercial banking practice akramova nargiza nutfillayevna head of the social credit department (social manager) of the bukhara regional department of jscb “mikrokreditbank”, uzbekistan g-mail: akramovan129@gmail.com a b s t r a c t k e y w o r d s this paper examines the organizational and procedural approaches used by commercial banks to manage non-performing loans (npls). it highlights the role of specialized internal units—such as departments or divisions—dedicated to monitoring overdue debts, implementing debt rehabilitation strategies, and managing borrower assets. the study outlines a comprehensive set of measures used to improve the quality of distressed loans, including additional collateral, state guarantees, asset sales, and legal enforcement mechanisms. furthermore, it discusses early intervention strategies, such as negotiating with borrowers and restructuring management, as well as various recovery methods like debt restructuring, refinancing, and debt sale to third parties. the paper emphasizes that banks select appropriate recovery strategies based on financial efficiency, transaction costs, risk exposure, reputational considerations, and the expected financial outcomes. overall, the research provides insights into how banks can mitigate credit risk and maintain financial stability by effectively managing problem loans. credit risk, loan default, financial stability, banking sector, credit portfolio quality, loan restructuring, overdue debt, liquidity risk, economic slowdown. introduction the core activity of any modern commercial bank is lending, which inherently involves the risk of nonperforming (i.e., overdue or unpaid) loans. this type of risk directly affects the quality of the bank’s credit portfolio, its financial stability, and liquidity levels. therefore, credit risk is considered one of the most critical and pressing financial risks for commercial banks. the effectiveness of credit risk management is a key determinant of a bank’s overall performance, profitability, and credibility in the financial market. currently, the rising share of non-performing loans in the banking sector remains one of the most urgent issues in the development of the financial sector. lending is the most significant and prioritized active operation within the activities of commercial banks. the quality of any given loan is primarily assessed by the degree to which it is serviced on time and in accordance with the loan agreement. the american journal of business management, economics and banking volume 37 june2025 p a g e | 103 www.americanjournal.org main criterion for loan quality is the borrower's ability to meet their obligations fully and within the prescribed timeframe. literature review john maynard keynes noted that defaults or high levels of non-performing loans can trigger an economic crisis, as banks begin to restrict lending, which in turn leads to a decline in investment and a slowdown in economic growth [1]. economist joseph schumpeter emphasized that the presence of problem loans can undermine trust in the banking system, which also results in reduced investment and lower lending volumes, negatively affecting the pace of economic development [2]. according to t.n. saveleva, non-performing loans are those in which the borrower fails to repay the principal and/or interest within the specified period, resulting in overdue debt [3]. such loans are classified as non-repaid over a certain period and may threaten the bank’s financial stability. i.v. mikhailova defines problem loans as those in which the borrower has failed to meet their obligations on time and has not repaid the debt in accordance with the agreed terms [4]. this category includes both loans with overdue payments and those whose repayment terms have been modified or restructured. financial analyst n.v. gorbunova states that non-performing loans are credit obligations for which payments on the principal or interest have not been made for an extended period [5]. this leads to a deterioration in the quality of the bank's assets and an increase in credit risks. according to v.s. denisenko, non-performing loans represent debt for which the borrower fails to meet the payment obligations for either principal or interest on time, resulting in the deterioration of the financial condition of both the borrower and the lending institution [6]. a.a. kozlov believes that problem loans are those that are not repaid in a timely manner, where borrowers are unable to fulfill their obligations. such loans may increase banking risks, reduce liquidity, and pose a threat to the stability of the entire financial system [7]. research methodology in carrying out this research work, methods widely used in scientific research methodology were used. in the process of scientific analysis, these scientific research methods were widely used, in particular, observation, generalization, grouping, comparison, analysis and synthesis methods were used. results and analysis for a commercial bank, the timely execution of loan payments in accordance with the schedule set forth in the loan contract ensures operational stability. if the borrower adheres strictly to the payment schedule attached to the loan agreement, the relationship between the bank and the client remains stable and balanced. full compliance with contractual terms minimizes delays and associated risks. under such circumstances, the loan is classified as high quality after several successful payment cycles. this, in turn, indicates a low risk level within the credit portfolio, consistent profitability, and the effective execution of the bank’s financial intermediation function. nevertheless, not all loans are serviced in accordance with the agreement. due to a combination of financial, operational, or behavioral factors, borrowers may fail to meet their payment obligations on time, which can lead to the accumulation of arrears or, in more severe cases, complete default on the loan. in such cases, the borrower may be deemed dishonest, and the quality classification of the issued american journal of business management, economics and banking volume 37 june2025 p a g e | 104 www.americanjournal.org loan is downgraded. the presence of overdue loans in a bank's portfolio can lead to numerous negative consequences: firstly, any bank loan is usually issued using deposit funds attracted from clients. the commercial bank bears full legal responsibility for these deposits. secondly, overdue loans are subject to strict oversight by the regulator (central bank). the regulator requires the creation of loan loss provisions for any loans that become overdue. commercial banks must regularly report on the presence of non-performing loans and the amount of reserves formed for potential loan losses. the growth of non-performing loans has a direct negative impact on a bank's financial condition. if the share of problem loans reaches critical levels, the bank's operations may cease altogether. for instance, in 2008, several commercial banks exited the financial market for this reason. currently, there are two main strategies to prevent the increase in non-performing loans: thorough pre-loan borrower assessment. before issuing a loan, banks employ various evaluation methodologies, including scoring models, internal security checks, and other risk assessment tools. most banks develop proprietary assessment systems, which are considered commercial secrets. active management of overdue debt. the reasons for loan defaults vary. sometimes, borrowers simply forget to make payments or face technical issues like insufficient account balances. others may be experiencing temporary financial difficulties, while some borrowers never intended to repay the loan an act considered fraudulent. to date, no universal mechanism has been developed for effectively managing overdue debt. many questions remain unanswered regarding optimal approaches to managing non-performing assets. each commercial bank defines its own recovery strategy based on its internal governance structure, the size and quality of its credit portfolio, interdepartmental coordination, and the degree of portfolio risk. the most common causes of non-performing loans (npls) in commercial banks can be effectively illustrated through a comprehensive diagram that categorizes both internal and external risk factors contributing to loan defaults picture 1. main causes of non-performing loans in commercial banking this situation is exacerbated in periods of economic instability, particularly when borrowers face financial and social difficulties. inaccurate assessment of the borrower's creditworthiness; insufficient collateral or guarantees; poor evaluation of macroeconomic factors. american journal of business management, economics and banking volume 37 june2025 p a g e | 105 www.americanjournal.org a loan is classified as overdue if the borrower fails to make payments as scheduled in the loan agreement. whether a loan is classified as non-performing depends on the internal credit policy of the bank. some banks consider loans overdue after just one or two days of delay, while others use a 30day threshold. typically, commercial banks attempt to contact borrowers within the period defined in the credit contract, identify the reasons for the delay, and implement measures to resolve the issue. if the loan is secured by collateral, the bank has the right to initiate enforcement procedures if necessary. based on the table below, an analysis is conducted of the commercial banks operating in uzbekistan that have the highest levels of non-performing loans (npls). table 1 comparative analysis of non-performing loan (npl) ratios in selected commercial banks in uzbekistan [8] bank name total loans (billion uzs) npl volume (billion uzs) npl ratio (%) madad invest bank 307 74 24,1% garant bank 797 118 14,8% avo bank 283 36 12,5% ipoteka bank 35,094 3577 10,2% yangi bank 138 12 8,7% business development bank 22527 1915 8,5% saderat bank 21 1 6,6% agrobank 59436 2,903 4,9% microcreditbank 17416 804 4,6% kapital bank 31584 1437 4,5% this table presents the volume of total loans, the number of non-performing loans, and the corresponding npl ratio (%) for selected commercial banks operating in uzbekistan. the analysis reveals that madad invest bank has the highest npl ratio at 24,1%, indicating that nearly a quarter of its loan portfolio is not being serviced properly. this suggests significant credit risk and potential weaknesses in credit evaluation or recovery mechanisms. garant bank (14,8%) and avo bank (12,5%) also demonstrate relatively high levels of problem loans, placing them in a high-risk category. ipoteka bank, business development bank, and yangi bank also report elevated npl ratios, ranging from 8,5% to 10,2%, signaling a need for strengthened credit risk management practices. meanwhile, agrobank, kapital bank, and mikrokreditbank show comparatively lower npl ratios (between 4,5% and 4,9%), but even these levels require close monitoring, as a persistent npl rate above 4% may still have a negative impact on asset quality and financial stability in the medium term. in commercial banks, the management of non-performing debt is typically handled by a dedicated structural unit. depending on the scale and organizational structure of the bank, this unit may take the form of a department, sector, or division. the activities of this unit are governed by internal regulations, which define the procedures for dealing with non-performing loans (npls). american journal of business management, economics and banking volume 37 june2025 p a g e | 106 www.americanjournal.org this unit is responsible for monitoring non-performing and overdue loans within the bank’s credit portfolio, implementing measures aimed at the rehabilitation of distressed assets, and, in some cases, managing the borrower's assets and cash flows. a comprehensive set of measures aimed at improving the quality of non-performing loans may include the following actions: a) attracting additional collateral – including guarantees, third-party sureties, or pledging of movable and immovable assets; b) partial sale of collateral; c) obtaining government guarantees for loan repayment – utilizing budgetary funds to repay the principal and interest; d) loan repayment through the sale of the borrower’s assets and preventing investment in lowprofitability assets; e) strengthening control over accounts receivable and inventories, allowing cash flow to be redirected toward loan repayment; f) imposing penalty sanctions; g) repayment of the loan through the attraction of additional capital or financial support by the borrower. if early signs of credit deterioration are detected (especially in loans issued to legal entities), the bank may take the following organizational and administrative measures: discussing with the company's owners the potential replacement of management; concluding a settlement agreement with the borrower to avoid legal proceedings; appointing observers or consultants to work with the borrower on behalf of the bank. in cases where there is a significant delay in loan repayments and a comprehensive recovery strategy is needed, the bank may, depending on its internal policies, apply the following measures: debt restructuring; refinancing; full realization of collateral; enforcing obligations through guarantors and sureties; judicial debt recovery; selling the debt to third parties (e.g., collection agencies). when determining the method for recovering overdue loans, the bank evaluates the efficiency and cost of each option. in doing so, it considers the following key criteria: a) financial costs associated with the chosen recovery method; b) transactional costs – including costs of negotiation, decision-making, oversight, legal enforcement, and information processing; c) risk factors – such as credit, interest rate, country, and operational risks; d) the bank’s reputation; e) the financial outcome of debt recovery efforts. overall, a high npl ratio reflects deteriorating loan quality and may signal broader structural or operational issues in a bank's lending policies, risk assessment, and debt recovery practices. these indicators are also influenced by external macroeconomic conditions and borrower behavior patterns. american journal of business management, economics and banking volume 37 june2025 p a g e | 107 www.americanjournal.org conclusion non-performing loans (npls) remain a critical challenge for commercial banks, directly affecting their credit portfolio quality, liquidity, and overall financial stability. a high level of npls weakens banks' ability to extend new credit, undermines investor and depositor confidence, and can trigger broader economic consequences, including reduced investment and slowed growth. the causes of npls are multifaceted, ranging from poor borrower assessment and inadequate collateral to adverse macroeconomic conditions. effective credit risk management, timely monitoring, and strategic loan restructuring are essential to mitigate the impact of problem loans. ultimately, minimizing npls is not only vital for the health of individual financial institutions but also for ensuring the resilience of the entire banking system. furthermore, the effective management of non-performing loans requires a balanced approach combining preventive measures and responsive strategies. preventive mechanisms include comprehensive borrower assessment, strict underwriting standards, and robust credit monitoring systems. on the other hand, responsive strategies such as timely loan restructuring, enforcement of collateral, and the use of specialized recovery units help banks minimize losses associated with distressed assets. regulatory frameworks must also support banks in accurately classifying and provisioning for npls, thereby enhancing transparency and safeguarding financial soundness. in the long term, reducing the volume of npls strengthens not only individual bank resilience but also contributes to the stability and efficiency of the financial system as a whole. a healthy banking sector is crucial for sustainable economic growth, as it facilitates the smooth flow of credit to productive sectors of the economy. policymakers, regulators, and bank managers must therefore work collaboratively to identify early warning signals, promote financial literacy, and ensure that risk management practices evolve in line with changing economic realities. references 1. keynes j.m. the general theory of employment, interest and money. – london: macmillan, 1936. 2. schumpeter j.a. the theory of economic development. – cambridge: harvard university press, 1934. 3. сэвелева т.н. проблемные кредиты: понятие, классификация и пути решения // вестник экономики и права. – 2017. – № 9. – с. 132–136. 4. михайлова и.в. управление проблемными кредитами в коммерческом банке // финансовая экономика. – 2019. – № 1. – с. 78–81. 5. горбунова н.в. воздействие проблемных кредитов на устойчивость банковской системы // деньги и кредит. – 2020. – № 6. – с. 49–52. 6. денисенко в.с. финансовая устойчивость банков и влияние проблемных кредитов // банковское дело. – 2017. – № 4. – с. 33–36. 7. козлов а.а. проблемные активы коммерческих банков: причины возникновения и способы минимизации рисков // вопросы экономики и права. – 2018. – № 5. – с. 85–88. 8. https://cbu.uz – the central bank of the republic of uzbekistan https://cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 8 www.americanjournal.org the role of the service sector in reducing poverty: international experience and regional perspectives adilbay dauletmuratov, phd, associate professor, department of management and economics, karakalpak state university, uzbekistan email: dadil1509@mail.ru a b s t r a c t k e y w o r d s the article explores the growing importance of the service sector as a key driver in reducing poverty, especially in developing and transition economies. based on empirical data and international experience, it highlights how service sector expansion fosters employment, enhances income distribution, and stimulates human capital development. particular attention is given to the role of education, healthcare, tourism, ict, and financial services in achieving inclusive growth in uzbekistan and the republic of karakalpakstan. the study also proposes a set of strategic recommendations to strengthen service-oriented economic models for poverty reduction. service economy, poverty reduction, inclusive growth, employment, human capital, regional development, sustainable development, social inclusion, income inequality, entrepreneurship, digital transformation, public–private partnership (ppp), financial inclusion, education services.. introduction in the 21st century, the service sector has emerged as a leading contributor to global economic growth and poverty reduction. according to the world bank (2023), services account for nearly 67% of global gdp and 50% of total employment. for developing countries, this structural shift toward services has become a foundation for inclusive and sustainable development. in uzbekistan, particularly in the republic of karakalpakstan, the service sector’s contribution to regional gdp has been steadily increasing, driven by government policies promoting entrepreneurship, digitalization, and public-private partnerships. however, to translate this growth into effective poverty alleviation, targeted strategies must enhance access to quality services and create productive employment opportunities for vulnerable populations. theoretical framework: services and poverty reduction poverty reduction through the service economy can be explained through several interlinked mechanisms: american journal of business management, economics and banking volume 41 october2025 p a g e | 9 www.americanjournal.org 1. employment creation: service industries such as trade, education, healthcare, tourism, and logistics play a decisive role in fostering inclusive employment and social mobility, particularly for women, youth, and low-income households. these sectors are characterized by high labor absorption capacity, relatively low barriers to entry, and moderate capital requirements, making them more accessible for small and medium-sized enterprises (smes) and self-employed entrepreneurs. moreover, the service economy provides flexible employment arrangements including part-time, seasonal, and home-based work which are particularly important in contexts where traditional industrial jobs are limited. for instance, the education and healthcare sectors not only generate direct employment for teachers, medical personnel, and support staff, but also create indirect opportunities through related services such as training, catering, transport, and maintenance. in addition, tourism and trade services stimulate demand for local goods, crafts, and hospitality, thereby supporting microenterprises and promoting rural income diversification. the logistics and ict-based services further expand market connectivity, allowing small producers and entrepreneurs to access regional and international value chains. thus, the service sector functions as a catalyst for inclusive growth, bridging the gap between formal and informal economies, empowering marginalized social groups, and reducing structural poverty through sustained employment generation and skill development. 2. human capital enhancement: services in education and healthcare are among the most powerful instruments for enhancing human productivity, increasing earning potential, and improving overall social well-being. these sectors constitute the foundation of human capital formation, which is widely recognized as a critical determinant of long-term economic growth and poverty reduction. as early as the 1960s, theodore w. schultz (1961) and gary s. becker (1964) argued that education and health are not merely social goods but also productive investments that generate measurable returns for individuals and society. education equips individuals with cognitive, technical, and entrepreneurial skills, enabling them to participate effectively in modern labor markets and to adapt to technological changes. meanwhile, good health enhances labor efficiency, reduces absenteeism, and extends the productive lifespan of workers. empirical studies across developing economies have confirmed that regions with better access to quality education and healthcare services tend to experience higher income mobility and lower intergenerational poverty transmission. for instance, world bank (2023) data show that every 10% increase in educational attainment in low-income populations leads to an average 6–8% increase in individual earnings, while improvements in healthcare access reduce productivity losses due to illness by up to 15% annually. in the context of uzbekistan and the republic of karakalpakstan, expanding educational and healthcare services especially in rural and remote areas has a direct impact on poverty alleviation. government initiatives such as “year of the development of science, enlightenment and the digital economy” (2020) and primary healthcare modernization programs have significantly improved access to knowledge and health infrastructure, creating the conditions for inclusive and sustainable development. american journal of business management, economics and banking volume 41 october2025 p a g e | 10 www.americanjournal.org thus, investing in education and health services is not only a social necessity but also a strategic economic imperative, as it strengthens human capital, fosters innovation, and provides the foundation for a competitive and equitable service-based economy. 3. income diversification: non-agricultural services play a crucial role in diversifying rural economies by providing alternative and stable sources of income, thereby reducing dependency on seasonal agricultural activities and minimizing vulnerability to external shocks such as climate change, droughts, and market fluctuations. in many developing regions, rural households that engage in trade, transport, handicrafts, tourism, education, or small-scale service enterprises are more resilient to income instability and food insecurity. the expansion of non-farm service activities such as rural retailing, repair workshops, hospitality services, digital communication, and local financial intermediation has enabled rural populations to integrate more effectively into regional and national markets. this transition not only enhances income security but also stimulates entrepreneurship and innovation within local communities. for instance, the emergence of eco-tourism, rural logistics, and mobile financial services in regions like karakalpakstan provides new employment opportunities, especially for women and youth, while also preserving traditional livelihoods. empirical evidence from the asian development bank (2023) and fao (2022) indicates that households participating in non-agricultural services earn 25–40% higher per capita income compared to those relying solely on farming. moreover, these services help reduce rural-urban migration pressures, as improved local opportunities encourage young workers to remain and invest in their home regions. in the context of uzbekistan and the republic of karakalpakstan, fostering non-agricultural services such as rural tourism, handicraft production, renewable energy maintenance, education and healthcare outreach, and ict-based microbusinesses has become an essential component of rural development policy. by strengthening these service-based activities, rural areas can achieve greater economic resilience, gender-balanced employment, and long-term poverty reduction, even under conditions of environmental and market uncertainty. 4. social inclusion and empowerment: expanding access to digital and financial services has become one of the most effective mechanisms for empowering marginalized and low-income communities, allowing them to participate fully in the modern, innovation-driven economy. digital inclusion and financial inclusion together create an enabling environment where individuals, regardless of geographic location or socio-economic background, can access markets, information, and essential financial resources. the diffusion of mobile banking, digital payment systems, and fintech platforms has significantly reduced transaction costs and eliminated traditional barriers to financial participation. for instance, through mobile applications and e-wallets, small entrepreneurs, women, and rural households can now save securely, obtain microloans, and conduct business without needing physical banking infrastructure. according to the world bank global findex database (2023), the global rate of adults with access to formal financial accounts rose from 51% in 2011 to 76% in 2021, largely due to the spread of digital financial technologies. american journal of business management, economics and banking volume 41 october2025 p a g e | 11 www.americanjournal.org beyond financial inclusion, digital connectivity enables access to education, healthcare, e-commerce, and remote employment opportunities. in rural regions, where traditional industries are limited, the expansion of broadband infrastructure and digital literacy programs directly contributes to income diversification and social inclusion. for example, in uzbekistan and the republic of karakalpakstan, the implementation of the “digital uzbekistan – 2030” strategy has facilitated the creation of it parks, e-learning platforms, and digital service centers, providing youth and women with new channels for self-employment and innovation. empirical evidence shows that a 10% increase in broadband penetration can raise gdp growth by 1– 1.5% in developing countries (itu, 2022), while the expansion of mobile financial services reduces income inequality and supports entrepreneurship development. as a result, digital and financial inclusion are not only technological achievements but also transformative socio-economic tools that strengthen resilience, reduce poverty, and promote equitable participation in the digital economy. international experience: lessons from emerging economies china has successfully used the service sector to absorb surplus rural labor. between 2000 and 2020, over 250 million rural workers found employment in urban service industries such as construction, logistics, and e-commerce. this structural transition lifted more than 800 million people out of poverty (world bank, 2022). india leveraged its ict and outsourcing industries to create millions of skilled service jobs. the share of the service sector in gdp rose from 45% in 1990 to 63% in 2023, contributing significantly to middle-class expansion. vietnam adopted tourism and sme-based service growth as a key poverty reduction tool. according to undp (2021), every 1% growth in the service sector reduced the poverty rate by 0.3 percentage points on average. these examples demonstrate that service-led development, when combined with education, infrastructure, and innovation, becomes an effective poverty reduction strategy. the service sector in uzbekistan and karakalpakstan uzbekistan’s “development strategy 2030” emphasizes diversification and digitalization of the economy, where the service sector is considered a strategic pillar. the share of services in national gdp reached 47.8% in 2024, up from 42% in 2018 (state statistics agency, 2024). in the republic of karakalpakstan, service activities have expanded in areas such as trade, education, transport, tourism, and banking. however, the sector’s poverty-reducing potential is not yet fully realized due to: ▪ limited access to quality vocational education and ict infrastructure; ▪ insufficient development of rural service enterprises; ▪ low financial inclusion among women and rural households. despite these challenges, the government’s initiatives such as the “digital karakalpakstan” program, family entrepreneurship funds, and tourism clusters are beginning to show positive results. for instance, the creation of over 7,000 new service jobs in 2024 contributed to a 2.5% decrease in regional poverty levels (ministry of economy, 2025). american journal of business management, economics and banking volume 41 october2025 p a g e | 12 www.americanjournal.org empirical analysis: employment and income dynamics recent data reveal that service-related employment in karakalpakstan increased from 27% of total employment in 2019 to 36% in 2024. the most dynamic sub-sectors include: service sub-sector employment share (2024) average monthly income (uzs) poverty impact trade and logistics 14% 2.8 million high employment elasticity education and health 9% 3.2 million human capital enhancement tourism and catering 5% 2.5 million rural income diversification ict and digital services 3% 4.1 million skilled youth employment correlation analysis (based on regional data 2015–2024) shows a strong inverse relationship (r = -0.74) between service sector employment growth and regional poverty rate, confirming the sector’s direct poverty-reducing role. strategic directions for strengthening service-led poverty reduction a comprehensive and sustainable approach to poverty reduction through the service sector requires the integration of human development, institutional innovation, and technological transformation. the following strategic directions are proposed to maximize the poverty-alleviating potential of the service economy in uzbekistan and, in particular, the republic of karakalpakstan. 1. human capital investment: enhancing human capital remains the cornerstone of inclusive and service-driven growth. expanding vocational education, digital literacy, and technical training programs aligned with labor market demands will improve employability and productivity across the service economy. collaboration between educational institutions and private enterprises should ensure that training curricula reflect real-world market skills in fields such as ict, logistics, tourism, and healthcare services. furthermore, establishing lifelong learning centers and regional competence hubs in karakalpakstan can bridge skill gaps among youth and women, enabling them to transition from informal to formal employment sectors. investment in soft skills such as communication, customer service, and innovation management—should complement technical training to enhance competitiveness in service-oriented professions. 2. inclusive entrepreneurship support: to stimulate entrepreneurship among low-income groups, the government and financial institutions must expand microcredit programs, startup incubation, and mentorship initiatives, particularly in rural and semi-urban areas. priority should be given to womenand youth-led service startups in areas such as catering, online trade, childcare, digital design, and small-scale tourism. experience from microfinance programs in bangladesh and indonesia demonstrates that access to small business capital can increase household income by 30–40% and significantly improve social mobility. american journal of business management, economics and banking volume 41 october2025 p a g e | 13 www.americanjournal.org in karakalpakstan, establishing “service innovation funds” and regional business incubators would create new opportunities for entrepreneurial development and self-employment, contributing directly to poverty alleviation and local economic resilience. 3. public–private partnerships (ppp): effective poverty reduction in the service sector requires joint efforts between the public and private sectors. encouraging ppp projects in education, healthcare, tourism, and infrastructure will not only improve service accessibility but also enhance quality and efficiency. such partnerships can mobilize private investment for public benefit for example, through the construction of regional hospitals, vocational schools, and digital service centers. the government should adopt transparent regulatory frameworks, risk-sharing mechanisms, and performance-based contracts to attract private partners. international experience from countries like malaysia and turkey shows that well-designed ppps can reduce fiscal burdens while extending essential services to vulnerable groups. 4. digital transformation and financial inclusion: accelerating digital transformation is essential for integrating low-income and marginalized populations into the formal economy. the development of e-commerce, fintech, e-government platforms, and digital public services can reduce transaction costs, improve transparency, and foster entrepreneurship. promoting mobile banking and digital payments will empower rural households and microenterprises to access financial services securely. the ongoing implementation of “digital uzbekistan – 2030” and “digital karakalpakstan” strategies should prioritize expanding broadband access, digital literacy, and cybersecurity infrastructure. in addition, digital platforms can serve as effective tools for public awareness, social protection delivery, and employment matchmaking, contributing to inclusive growth and poverty reduction. 5. sustainable tourism development: sustainable tourism represents a high-potential service industry capable of generating local employment, stimulating small businesses, and preserving cultural and natural heritage. in karakalpakstan’s aral sea region, eco-tourism, cultural heritage tourism, and community-based hospitality services can become new growth engines for rural economies. developing tourism clusters that integrate transport, accommodation, crafts, and local cuisine will create a value chain of local services, ensuring that income benefits remain within the community. to achieve this, investment in tourism infrastructure, marketing, and environmental sustainability is crucial. the experience of countries like vietnam and georgia shows that sustainable tourism not only diversifies income sources but also enhances regional identity and global visibility. 6. institutional strengthening and policy coordination in addition to sector-specific measures, effective poverty reduction requires coherent policy coordination, institutional capacity building, and evidence-based monitoring. establishing regional councils for service sector development in karakalpakstan can ensure better coordination between government agencies, private actors, and civil society organizations. american journal of business management, economics and banking volume 41 october2025 p a g e | 14 www.americanjournal.org regular impact assessments and data-driven policy evaluation mechanisms should be implemented to track the contribution of service activities to employment, income generation, and poverty reduction conclusion the service sector has emerged as one of the most dynamic drivers of inclusive and sustainable economic transformation. its ability to generate employment, enhance human capital, and ensure equitable access to essential services makes it a cornerstone of poverty reduction strategies in both developed and developing economies. by diversifying income sources, stimulating entrepreneurship, and facilitating social mobility, the service economy directly contributes to reducing income inequality and improving the overall quality of life. international experience demonstrates that countries which have prioritized service-led development such as south korea, singapore, and malaysia have successfully combined innovation, human capital investment, and institutional reforms to achieve rapid poverty reduction and sustained economic growth. their success highlights the importance of integrating education, digitalization, and social policy into a coherent service development framework. for uzbekistan and the republic of karakalpakstan, the service sector represents a strategic platform for advancing inclusive and regionally balanced development. strengthening key areas such as education, healthcare, tourism, digital services, and financial inclusion can generate new employment opportunities, especially for women and youth, while reducing dependence on traditional agricultural and extractive industries. in particular, the development of non-agricultural rural services and ecotourism in the aral sea region offers promising prospects for poverty alleviation and environmental sustainability. to fully realize this potential, it is essential to implement comprehensive policy measures that align with long-term national priorities, such as the “uzbekistan 2030 strategy” and the “digital uzbekistan – 2030” agenda. this includes expanding vocational education, fostering public–private partnerships (ppps), improving infrastructure, and promoting innovation ecosystems within the service economy. ultimately, fostering a vibrant, competitive, and socially inclusive service sector will enable uzbekistan and karakalpakstan to translate economic growth into tangible improvements in living standards, greater social cohesion, and reduced regional disparities. through sustained investment in human capital, digital transformation, and institutional capacity, the service economy can serve as a powerful engine of poverty reduction and sustainable development in the years ahead. references 1. becker, g. s. (1964). human capital: a theoretical and empirical analysis, with special reference to education. chicago: university of chicago press. 2. schultz, t. w. (1961). investment in human capital. the american economic review, 51(1), 1– 17. 3. world bank. (2023). world development report 2023: migrants, refugees, and societies. washington, dc: world bank. 4. united nations development programme (undp). (2021). human development report 2021/2022: uncertain times, unsettled lives. new york: undp. 6. state statistics agency of the republic of uzbekistan. (2024). socio-economic indicators of the republic of uzbekistan. tashkent: ssa. american journal of business management, economics and banking volume 41 october2025 p a g e | 15 www.americanjournal.org 7. ministry of economy and finance of the republic of uzbekistan. (2025). regional socio-economic development report: republic of karakalpakstan. tashkent. 8. government of uzbekistan. (2020). year of the development of science, enlightenment and the digital economy: presidential decree. tashkent. 9. government of uzbekistan. (2022). “digital uzbekistan – 2030” national strategy. tashkent. 10. karakalpakstan regional government. (2023). digital karakalpakstan regional development program 2023–2030. nukus. 11. united nations world tourism organization (unwto). (2023). tourism and poverty alleviation: global trends and best practices. madrid: unwto. 12. organisation for economic co-operation and development (oecd). (2021). services trade and employment: policy implications for inclusive growth. paris: oecd. 13. international labour organization (ilo). (2023). world employment and social outlook 2023: the role of services in job creation. geneva: ilo. 14. rodrik, d. (2016). premature deindustrialization. journal of economic growth, 21(1), 1–33. 15. undp uzbekistan. (2023). inclusive growth and sustainable human development in uzbekistan. tashkent: undp. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 118 www.americanjournal.org entrepreneurial skills and employees job performance of family businesses in yenagoa bayelsa state october omuere woyinkeditonmene department of entrepreneurship and marketing faculty of management sciences, federal university otuoke yenagoa bayelsa state. email: october.omuere@gmail.com,07036673457 opigo e. helen department of entrepreneurship and marketing faculty of management sciences, federal university otuoke yenagoa bayelsa state email: helenopigi@gmail.com,08034050851 a b s t r a c t k e y w o r d s this study explores the interplay between entrepreneurial skills and employee job performance within family businesses in yenagoa, bayelsa state, a region where such enterprises are vital to economic stability despite an oil-dominated economy. drawing on the resource-based view (rbv) framework, the research examines how key entrepreneurial competencies decision-making, communication, and leadership influence workforce productivity and efficiency. family businesses in yenagoa face unique challenges, including informality, limited resources, and familial dynamics, which may hinder the effective application of these skills. through a conceptual analysis, this study highlights how cultivating these skills can enhance employee performance, offering practical strategies for business owners and policymakers to strengthen these firms’ sustainability. by addressing a research gap in yenagoa’s informal business context, the findings provide a foundation for empirical studies and contribute to understanding workforce dynamics in family-run enterprises. entrepreneurial skills, employee job performance, family businesses, resourcebased view, decisionmaking, communication, leadership, yenagoa, bayelsa state, economic sustainability introduction family businesses are a cornerstone of economic activity in developing regions like yenagoa, bayelsa state, where they dominate sectors such as retail, hospitality, agriculture, and manufacturing (adebayo & okeke, 2019). these enterprises, often handed down through generations, integrate familial dynamics with business operations, creating a unique environment that shapes management practices and employee engagement. sectors such as retail, hospitality, agriculture, and manufacturing are american journal of business management, economics and banking volume 41 october2025 p a g e | 119 www.americanjournal.org heavily reliant on family businesses, which contribute significantly to local economic stability despite the region’s oil-centric focus (okafor & musa, 2021). in yenagoa, despite the region’s oil-driven economy, family businesses remain vital for employment and local stability, yet they face challenges stemming from informality and limited resources (okafor & musa, 2021). the success of these firms hinges on leveraging entrepreneurial skills to navigate both familial and market challenges. entrepreneurial skills such as opportunity identification, innovation, risk-taking, and resource management are essential for navigating these challenges and driving performance (nwosu & eze, 2020). in family businesses, leadership styles rooted in trust and loyalty often influence how employees align with organizational goals, impacting their job performance (ibrahim & yusuf, 2018). however, the lack of structured training in yenagoa’s informal business settings may hinder employees from fully leveraging these skills, limiting innovation and adaptability (adewale & bello, 2022). the economic landscape of yenagoa, characterized by its oil wealth juxtaposed with infrastructural and educational underdevelopment, amplifies the importance of optimizing family business performance (okonkwo & eze, 2023). while these businesses employ a significant portion of the local workforce, there is a paucity of research on how entrepreneurial skills influence employee job performance within this context. this study addresses a critical research gap by exploring how entrepreneurial skills enhance employee job performance in yenagoa’s family businesses. by examining decision-making, risk-taking, and continuous skill development, this research seeks to provide evidence-based strategies for family business owners and policymakers, strengthening the local economy. statement of the problem employee job performance in family businesses remains a critical factor for their survival and growth, yet it faces significant challenges. despite the prevalence of family businesses in sectors such as trade, agriculture, and services, many struggle to achieve optimal performance from their employees due to a lack of structured skill development and limited integration of entrepreneurial competencies. this issue is particularly pronounced in yenagoa, where socio-economic constraints, including high unemployment rates, infrastructural deficits, and an economy historically tied to oil and gas, place additional pressure on family businesses to maximize workforce efficiency. the inability to enhance employee job performance threatens the sustainability of these enterprises, which are vital to the local economy. furthermore, the unique dynamics of family businesses in yenagoa exacerbate the problem. the blending of familial relationships with professional roles, while fostering loyalty, can also lead to inefficiencies such as nepotism or resistance to modern management practices. these factors hinder the adoption of entrepreneurial skills that could enhance job performance. the consequences of poor employee job performance are far-reaching. family businesses risk stagnation or failure, which could exacerbate unemployment and economic instability in the region. without strategic efforts to improve workforce performance through skill development, nigerian smes, including family firms, struggle to remain viable. american journal of business management, economics and banking volume 41 october2025 p a g e | 120 www.americanjournal.org objectives of the study the main objective of this study is to explore the relationship between entrepreneurial skills and employee job performance in family businesses in yenagoa, bayelsa state. specifically, the study aims to: 1. assess the effect of decision-making skills and employee performance of family business in yenagoa bayelsa state. 2. analyze the effect of communication skills and employee performance of family business in yenagoa bayelsa state. 3. evaluate the effect of leadership skills and employee performance of family business in yenagoa bayelsa state. significance of the study this study offers valuable insights into how entrepreneurial skills enhance employee job performance in family businesses in yenagoa, benefiting business owners by identifying strategies to optimize workforce contributions. it provides managers with practical approaches to foster innovation and productivity, while equipping policymakers with evidence to design skill development programs, ultimately supporting the sustainability of family enterprises and the local economy. concept of entrepreneurial skills entrepreneurial skills are a set of competencies that enable individuals to identify opportunities, innovate, manage risks, and utilize resources effectively to achieve business goals (shane & venkataraman, 2019). these skills are not limited to business owners but extend to employees, empowering them to contribute proactively to organizational success. in family businesses, where adaptability is crucial, entrepreneurial skills such as creativity and problem-solving are vital for navigating both internal familial dynamics and external market pressures. the development of entrepreneurial skills often depends on experiential learning and exposure to realworld challenges, though formal training can enhance their application (nwosu & eze, 2020). in yenagoa’s family businesses, skills like opportunity recognition allow employees to spot market gaps, while resource management ensures efficient use o usef limited assets—a critical factor in a resourceconstrained region. these abilities distinguish entrepreneurial employees as drivers of innovation and growth within their organizations. research suggests that entrepreneurial skills foster a mindset of initiative and resilience, which can elevate job performance by aligning individual efforts with business objectives (adewale & bello, 2022). however, in the informal settings of many family businesses, the lack of structured opportunities to cultivate these skills may hinder their full realization. this study explores how such skills manifest in yenagoa’s family enterprises and their direct impact on employee outcomes. decision-making skills decision-making skills represent a core dimension of entrepreneurial skills, defined as the ability to analyze situations, evaluate alternatives, and make informed choices that advance organizational outcomes. uche (2020) describes these skills as essential for employees in bayelsa state’s family businesses, where economic volatility demands quick and effective responses to maintain competitiveness. winful et al. (2023) highlight that decision-making skills enable workers to prioritize american journal of business management, economics and banking volume 41 october2025 p a g e | 121 www.americanjournal.org tasks and allocate resources efficiently, a necessity in yenagoa’s resource-constrained environment. as an entrepreneurial competency, decision-making empowers employees to act decisively under pressure, contributing to both individual and organizational success (eze et al., 2018). the definition of decision-making skills emphasizes their strategic and analytical components, distinguishing them as a proactive tool for performance enhancement. orga et al. (2023) define them as the capacity to weigh risks and benefits in pursuit of optimal solutions, a skill critical for family businesses lacking formal decision-making frameworks. in the nigerian sme context, tangi et al. (2019) argue that effective decision-making reduces operational delays, ensuring that employees can respond to market demands swiftly. ezeanolue et al. (2022) add that these skills foster accountability by encouraging employees to take ownership of their choices, aligning their actions with business goals. this comprehensive definition underscores decision-making’s role in driving efficiency and satisfaction. afolabi (2023) highlights that effective decision making in entrepreneurship is not just about choosing the right path but also about doing so in a timely, informed, and strategic manner. one of the core components of decision making is problem identification and analysis. entrepreneurs need to discern the underlying issues affecting their business before they can make informed decisions. adeola (2023) posits that this skill requires both analytical thinking to break down complex problems into manageable parts and creative thinking to envision potential solutions. entrepreneurially, decision-making skills reflect a willingness to embrace uncertainty, a trait that mirrors the risk-taking ethos of entrepreneurship. nwosu and ugwuerua (2021) note that in family businesses, employees with strong decision-making abilities can identify and capitalize on emerging trends, such as new market opportunities in yenagoa. ahmad et al. (2018) emphasize that these skills enhance adaptability, enabling workers to navigate internal challenges like familial disputes or external pressures like infrastructural limitations. by facilitating informed and timely actions, decision-making skills contribute to a dynamic workforce capable of sustaining family business viability (winful et al., 2023). this entrepreneurial dimension is thus central to the study’s examination of job performance. decision-making skills influence job performance by reducing errors and enhancing task completion rates, as noted by orga et al. (2023). communication skills communication skills are a pivotal dimension of entrepreneurial skills, encompassing the ability to convey information clearly, foster collaboration, and build trust within the workplace. nwosu and ugwuerua (2021) describe these skills as the backbone of effective organizational interactions, particularly in family businesses where close-knit teams rely on mutual understanding to achieve goals. in yenagoa, where family firms often operate with limited resources, strong communication skills enable employees to coordinate tasks efficiently and maintain relationships with customers and stakeholders, as highlighted by tangi et al. (2019). these skills are not limited to verbal exchanges but also include active listening and non-verbal cues, which are essential for aligning individual efforts with business objectives in a dynamic local economy (eze et al., 2018). this foundational role positions communication as a critical entrepreneurial competency for enhancing job performance. communication skills extends to their capacity to bridge gaps between diverse perspectives, a trait vital in family businesses where familial and professional roles may overlap. winful et al. (2023) define them as the ability to articulate ideas and expectations in ways that reduce misunderstandings, thereby american journal of business management, economics and banking volume 41 october2025 p a g e | 122 www.americanjournal.org fostering a cohesive work environment. in the nigerian sme context, uche (2020) emphasizes that communication skills are instrumental in translating owner-managers’ visions into actionable tasks for employees, a process often challenged by informal structures in yenagoa’s family firms. orga et al. (2023) add that effective communication enhances adaptability by ensuring that employees are wellinformed about market changes or operational shifts, making it a key driver of efficiency and satisfaction. this multifaceted definition underscores communication’s role in facilitating both internal harmony and external responsiveness. leadership skills leadership skills involve the ability to guide, motivate, and inspire employees toward achieving organizational objectives, a role critical in the informal settings of family businesses. orga et al. (2023) describe leadership skills as the capacity to set a clear vision and rally a workforce around it, an attribute especially valuable in yenagoa, where family firms must adapt to economic uncertainties. ahmad et al. (2018) emphasize that these skills enable individuals—whether owner-managers or employees—to foster initiative and accountability, enhancing overall performance in resource-scarce environments. in the context of bayelsa state, leadership skills are pivotal for sustaining morale and productivity amidst challenges like infrastructural deficits, as noted by ezeanolue et al. (2022). the definition of leadership skills encompasses both directive and supportive elements, reflecting their dual role in driving results and nurturing team dynamics. tangi et al. (2019) define them as the competence to influence others through vision-setting and effective coordination, a trait that distinguishes high-performing family businesses. in nigerian smes, uche (2020) highlights that leadership skills are often informal, relying on personal charisma and relational trust rather than structured authority, a characteristic prevalent in yenagoa’s family firms. winful et al. (2023) further elaborate that leadership involves empowering employees to take ownership of their roles, aligning individual efforts with organizational goals in a way that fosters resilience. this definition positions leadership as a transformative entrepreneurial skill that elevates job performance. leadership is associated with stimulants and incentives that motivate people to reach common objectives. the essence of leadership involves achieving objectives with and through people. adekunle, (2020) define leadership as the process of influencing people so that they make an effort by their own will and enthusiasm towards obtaining the group’s goals. according to alfanny (2018), without leadership, the probability of mistakes occurring increases and the opportunities for success become more and more reduced. for these same authors, and in this context, leadership allows cooperation, diminishes conflicts, contributes to creativity and has an integrating role, as it keeps people united even when not physically so. employee job performance employee job performance refers to the effectiveness and efficiency with which individuals execute their roles, encompassing productivity, quality, and goal attainment (borman & motowidlo, 2017). in family businesses, performance is often influenced by the interplay of personal relationships and business demands, creating a unique context where motivation and accountability may vary. highperforming employees contribute to profitability and competitiveness, making their performance a key metric of success. american journal of business management, economics and banking volume 41 october2025 p a g e | 123 www.americanjournal.org performance is not static but shaped by skills, leadership support, and organizational culture (okonkwo & eze, 2023). in yenagoa, where family businesses operate amidst economic challenges, employees with entrepreneurial skills may excel by adapting to change and improving operational efficiency. however, the absence of clear performance standards or incentives in informal setups can limit these gains, necessitating a deeper exploration of influencing factors. the link between entrepreneurial skills and job performance lies in their ability to enhance adaptability and initiative—traits critical for thriving in dynamic environments (ibrahim & yusuf, 2018). this study investigates how these skills translate into measurable performance outcomes in yenagoa’s family businesses, addressing a gap in understanding workforce dynamics in this context. theoretical review resource-based view (rbv) this theory is propounded by barney (1991). the resource-based view (rbv) of the firm posits that businesses can achieve sustainable competitive advantages by leveraging resources that are valuable, rare, inimitable, and non-substitutable (vrin). according to rbv, firms are not simply collections of capital, labor, and other tangible assets; rather, they are unique configurations of capabilities and resources. these can include both tangible resources like financial capital or physical assets and intangible resources like human capital, organizational culture, or proprietary technology. the theory suggests that firms outperform competitors when they have superior resources or are better at deploying these resources. rbv also emphasizes the importance of resource orchestration, where the strategic management of these resources plays a pivotal role in achieving long-term success. this involves not just possessing unique resources but also effectively developing, combining, and managing them in ways that competitors cannot easily replicate. this dynamic aspect of rbv acknowledges that the value of resources can change over time due to market shifts, technological advancements, or changes within the firm itself. the rbv theory is particularly applicable to this because it highlights how entrepreneurial skills can serve as valuable, rare, and hard-to-imitate resources. in a region where access to traditional resources like capital might be limited, the skills and capabilities of the entrepreneur become critical resources for success. this theory helps in understanding why some business, despite operating in the same environment, achieve different levels of success based on how effectively they utilize their human and organizational capabilities. moreover, rbv can shed light on why certain skills (like innovation, strategic thinking, or leadership) might give smes in yenagoa a competitive edge. for instance, an entrepreneur with exceptional market insight or networking skills might leverage these to access resources or markets that others cannot, thereby achieving higher market penetration or business success. this theory thus provides a framework to analyze how entrepreneurial skills translate into competitive advantages in a resource-constrained environment. social learning theory this theory is propounded by bandura (1977). social learning theory asserts that individuals acquire knowledge, skills, and behaviors through observation, imitation, and modeling, rather than solely through direct experience. bandura (1977) emphasizes four key processes—attention, retention, reproduction, and motivation—that govern how learning occurs within social contexts. in family businesses, this theory suggests that employees can develop entrepreneurial skills by observing owneramerican journal of business management, economics and banking volume 41 october2025 p a g e | 124 www.americanjournal.org managers or peers who exhibit competencies like problem-solving or leadership, making it a powerful framework for understanding skill transmission in yenagoa’s closely-knit family firms. the theory highlights the importance of role models in shaping employee behavior, a dynamic particularly relevant in family businesses where owner-managers often serve as exemplars. bandura (1977) argues that individuals are more likely to adopt observed behaviors if they perceive them as effective and are motivated by potential rewards, such as improved performance or recognition. in bayelsa, where formal training may be limited, employees can learn communication and decisionmaking skills by emulating successful practices within the firm (nwosu & ugwuerua, 2021). eze et al. (2018) note that in nigerian smes, social learning fosters a culture of adaptability, as employees mirror innovative responses to economic challenges, enhancing their job performance. 2.4 empirical literature akinyemi and adejumo (2018) conducted a study titled “entrepreneurial skills and organizational performance in nigerian smes” in southwestern nigeria, targeting small businesses, including family firms in trade and manufacturing. the research utilized a quantitative approach, surveying 280 employees and managers, and applied regression analysis to examine how skills such as communication and decision-making influence performance outcomes like productivity and employee satisfaction. findings revealed that entrepreneurial skills significantly enhance organizational performance by improving workforce adaptability and efficiency, a result relevant to yenagoa’s resource-constrained family businesses. the study’s nigerian context aligns with bayelsa’s socioeconomic environment, though its urban focus suggests a need for rural-specific insights, which this research provides. akinyemi and adejumo’s work supports the linkage between skills and performance, offering a broad foundation for this study. chukwuemeka and onuoha (2019) investigated “leadership competencies and employee productivity in family businesses” in a study set in southeastern nigeria, focusing on family firms in retail and agriculture. employing a mixed-methods design, the researchers collected data from 200 employees through questionnaires and interviews, using correlation analysis and thematic coding to assess how leadership skills impact productivity and morale. the study found that leadership competencies enhance employee productivity by fostering a supportive work environment, a finding pertinent to yenagoa where familial dynamics shape workplace interactions. while the southeastern focus offers regional relevance, its broader family business sample calls for a localized bayelsa perspective, which this research addresses. chukwuemeka and onuoha’s emphasis on leadership aligns with this study’s skill dimensions. ibrahim and musah (2020) explored “entrepreneurial skills development and employee performance in ghanaian family businesses” in a study targeting family firms in trade and services across northern ghana. the research adopted a quantitative methodology, surveying 300 employees and using structural equation modeling to test the relationship between skills like problem-solving and communication and performance indicators such as efficiency and job satisfaction. results indicated that skill development significantly boosts employee performance by enhancing adaptability to economic challenges, mirroring yenagoa’s need for resilience in an oil-dependent economy. the ghanaian context provides a comparative west african lens, though its northern focus differs from bayelsa’s coastal setting, prompting this study to refine the findings locally. ibrahim and musah’s evidence reinforces the importance of entrepreneurial skills in family firms. american journal of business management, economics and banking volume 41 october2025 p a g e | 125 www.americanjournal.org adebayo and kavoosian (2021) examined “impact of decision-making skills on employee performance in nigerian smes” in a study conducted in lagos, nigeria, including family businesses in manufacturing and services. using a quantitative approach, the researchers surveyed 260 employees and applied multiple regression analysis to investigate how decision-making skills affect performance outcomes like task efficiency and organizational growth. the study found that employees with strong decision-making skills exhibit higher performance levels by optimizing resources and reducing errors, a result applicable to yenagoa’s family firms facing infrastructural deficits. while the urban lagos setting contrasts with bayelsa’s semi-rural environment, the sme focus offers valuable parallels, which this research localizes further. adebayo and kavoosian’s findings highlight decision-making as a key performance driver. okeke and eze (2022) investigated “problem-solving skills and workforce effectiveness in familyowned enterprises” in a study set in anambra state, nigeria, targeting family firms in trade and hospitality. employing a qualitative approach, the researchers conducted in-depth interviews with 50 owner-managers and employees, using thematic analysis to explore how problem-solving skills influence effectiveness and employee well-being. findings showed that these skills enhance workforce effectiveness by enabling employees to address operational challenges creatively, a critical insight for yenagoa where economic diversification is essential. the study’s nigerian family business focus aligns with bayelsa, though its qualitative scope suggests a need for quantitative validation, which this research pursues. okeke and eze’s work underscores problem-solving’s role in performance enhancement. 2.5 implications managerial implications fostering entrepreneurial leadership: managers in yenagoa’s family businesses should adopt entrepreneurial leadership styles that encourage quick, informed decision-making and risk-taking. by modeling these behaviors, they can inspire employees to take initiative, enhancing productivity and innovation. resource optimization training: given the resource constraints in yenagoa, managers should prioritize training employees in resource management skills. this could involve workshops on efficient use of limited assets, enabling employees to contribute to cost savings and operational efficiency. creating a supportive environment: managers need to balance the informal, familial culture with clear performance expectations. providing consistent feedback and recognition can motivate employees to apply entrepreneurial skills, bridging the gap between personal relationships and professional outcomes. employee development implications skill enhancement programs: employees should be encouraged to participate in continuous learning opportunities, even in informal settings. peer mentoring or on-the-job training can cultivate skills like creativity and problem-solving, directly boosting job performance. empowerment through responsibility: assigning employees tasks that require innovation and risktaking can build their entrepreneurial mindset. this empowerment fosters ownership, aligning individual efforts with business success. american journal of business management, economics and banking volume 41 october2025 p a g e | 126 www.americanjournal.org adaptability focus: in yenagoa’s dynamic market, employees must develop adaptability through exposure to diverse challenges. this prepares them to handle economic fluctuations, enhancing their long-term value to the firm. policy implications subsidized training initiatives: policymakers in bayelsa state should develop subsidized skill development programs tailored to family businesses. these could target entrepreneurial competencies, addressing the training gap in informal setups. support for informal sector growth: policies promoting access to microfinance or business development services can help family firms invest in employee skills, improving competitiveness and sustainability. regional economic diversification: by supporting entrepreneurial skills in family businesses, policymakers can reduce yenagoa’s reliance on oil, fostering a more resilient local economy through diversified employment opportunities. theoretical implications expanding rbv application: this study reinforces the resource-based view by demonstrating how entrepreneurial skills serve as intangible resources in resource-scarce contexts like yenagoa, offering a new lens for rbv in informal economies. contextualizing leadership theories: the findings highlight the need to adapt leadership theories to family business settings, where relational dynamics shape entrepreneurial outcomes differently than in corporate environments. skill-performance linkage: the research contributes to entrepreneurship theory by linking specific skills (e.g., risk-taking, innovation) to measurable employee performance, providing a framework for future studies in similar regions. 2.6 conclusions this study underscores the critical role of entrepreneurial skills in enhancing employee job performance in yenagoa’s family businesses. decision-making, risk-taking, and continuous skill development emerge as key drivers of productivity and efficiency, aligning with the resource-based view’s emphasis on leveraging unique capabilities for competitive advantage. however, the informal nature of these enterprises, coupled with limited training opportunities, poses barriers to fully realizing these skills’ potential. leadership styles rooted in familial trust can either amplify or hinder performance, depending on their consistency and supportiveness. in yenagoa’s resource-constrained yet opportunity-rich context, optimizing entrepreneurial skills offers a pathway to sustainable growth for family businesses and the broader economy. 2.7 recommendations based on the findings of this study the following recommendations were made; 1. family business owners should introduce low-cost, experiential training (e.g., shadowing or mentorship) to build employees’ entrepreneurial skills, compensating for the lack of formal programs. american journal of business management, economics and banking volume 41 october2025 p a g e | 127 www.americanjournal.org 2. managers should create a culture that rewards calculated risks, providing employees with autonomy and resources to innovate without fear of failure. 3. business owners and policymakers should partner with universities like federal university otuoke to design affordable skill development initiatives, tailoring them to yenagoa’s family business needs. 4. to address informality’s inconsistencies, firms should establish clear performance goals and incentives, linking entrepreneurial contributions to tangible rewards. references 1. adebayo, a., & kavoosian, s. (2021). impact of decision-making skills on employee performance in nigerian smes. journal of small business management, 59(4), 789–803. 2. adebayo, a., & okeke, c. (2019). family businesses and economic development in bayelsa state. african journal of business management, 13(5), 123–134. 3. adekunle, s. (2020). leadership dynamics in nigerian family businesses. journal of leadership studies, 14(2), 45–56. 4. adeola, o. (2023). problem identification and decision-making in entrepreneurship. entrepreneurship research journal, 13(1), 89–102. 5. adewale, o., & bello, k. (2022). entrepreneurial skills and adaptability in nigerian informal businesses. journal of entrepreneurship in emerging economies, 14(3), 456–470. 6. afolabi, a. (2023). effective decision-making in entrepreneurial ventures. international journal of management studies, 30(2), 234–245. 7. ahmad, s., ismail, a., & uli, j. (2018). entrepreneurial competencies and organizational adaptability. international journal of business and management, 13(6), 78–89. 8. akinyemi, f., & adejumo, g. (2018). entrepreneurial skills and organizational performance in nigerian smes. journal of african business, 19(3), 345–360. 9. alfanny, m. (2018). leadership and organizational success in smes. journal of management development, 37(4), 567–578. 10. bandura, a. (1977). social learning theory. prentice hall. 11. barney, j. b. (1991). firm resources and sustained competitive advantage. journal of management, 17(1), 99–120. 12. borman, w. c., & motowidlo, s. j. (2017). task performance and contextual performance: the meaning for personnel selection research. human performance, 10(2), 99–109. 13. chukwuemeka, o., & onuoha, b. (2019). leadership competencies and employee productivity in family businesses. journal of family business management, 9(2), 234–248. 14. eze, j., nwosu, c., & ugwuerua, e. (2018). entrepreneurial skills and performance in nigerian smes. african journal of entrepreneurship, 5(1), 56–67. 15. ezeanolue, e., orga, c., & uche, c. (2022). decision-making and accountability in family firms. journal of business research, 15(3), 123–134. 16. ibrahim, a., & musah, a. (2020). entrepreneurial skills development and employee performance in ghanaian family businesses. international journal of entrepreneurship, 24(2), 89–103. 17. ibrahim, s., & yusuf, m. (2018). leadership styles and employee engagement in family businesses. journal of management studies, 55(4), 678–690. american journal of business management, economics and banking volume 41 october2025 p a g e | 128 www.americanjournal.org 18. nwosu, c., & eze, j. (2020). entrepreneurial skills and business success in informal economies. journal of small business and enterprise development, 27(3), 456–470. 19. nwosu, c., & ugwuerua, e. (2021). communication skills and organizational effectiveness in family firms. african journal of management, 6(2), 89–100. 20. okafor, c., & musa, t. (2021). family businesses in yenagoa: economic contributions and challenges. journal of economic development studies, 9(1), 34–45. 21. okeke, c., & eze, j. (2022). problem-solving skills and workforce effectiveness in family-owned enterprises. qualitative research in organizations and management, 17(3), 345–359. 22. okonkwo, c., & eze, j. (2023). economic challenges and family business performance in yenagoa. journal of african economies, 32(2), 123–136. 23. orga, c., ezeanolue, e., & uche, c. (2023). leadership and decision-making skills in informal businesses. journal of organizational behavior, 44(5), 789–802. 24. shane, s., & venkataraman, s. (2019). the promise of entrepreneurship as a field of research. academy of management review, 25(1), 217–226. 25. tangi, f., nwosu, c., & eze, j. (2019). communication and decision-making in nigerian smes. journal of business and management, 21(4), 56–67. 26. uche, c. (2020). entrepreneurial skills in bayelsa state’s family businesses. journal of entrepreneurship studies, 12(3), 78–89. 27. winful, e., ezeanolue, e., & orga, c. (2023). entrepreneurial skills and employee performance in resource-constrained settings. international journal of entrepreneurial behavior & research, 29(2), 345–359. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 90 www.americanjournal.org the importance of human capital investments in the innovation economy asamkhodjaeva shoira senior teacher, tashkent institute of management and economics, tashkent, uzbekistan. e-mail: asamxodjayeva.shoira@timeedu.uz orcid: 0000-0002-6124-2324 a b s t r a c t k e y w o r d s the article discusses the essence of investing in human capital and examines the impact of these investments on the development of the country in the context of the innovative economy. the main directions of investment in human capital are also analyzed. at the end of the work, conclusions and recommendations on the topic were formed. human capital, investments, economic growth, innovations, efficiency, income, expense, labor productivity, capital, science, research and development, innovation resources, innovation results. introduction the innovative economy is based on the flow of innovations in determining the scientific, technological and socio-economic development of the country. in this context, employees, their knowledge and experience are an important factor in financial and economic activity. in the context of the country's globalization of the world economy, the use of new information resources and technologies, the development of new sectors of the economy are becoming a requirement of the time. this, in turn, affects the fact that the need for the development of human capital is also increasing from year to year. therefore, today the development and implementation of measures aimed at investing in human capital is a requirement of the time. in this regard, as our esteemed president sh.m. mirziyoyev emphasized, “developing human capital and educating a creative young generation is one of the strategic tasks that uzbekistan has set itself. we believe that open and quality education for all is the most effective factor in eradicating poverty, increasing people's well-being, and achieving sustainable economic growth. our country has gained extensive experience in this regard in recent years the education system is undergoing radical changes. over the past six years, coverage in preschool education has increased from 21% to 70%, and in higher education from 9% to 38%. by 2030, every child will have the opportunity to attend kindergarten, and every second school graduate will have the opportunity to study at a higher education institution” [1]. the constant renewal of technological processes, the increasing number of factors of innovative development and intensive economic growth further increase the demand for qualified personnel who american journal of business management, economics and banking volume 36 may2025 p a g e | 91 www.americanjournal.org can quickly adapt to these processes. that is why the new uzbekistan development strategy, which is the legal basis for the development of our country until 2030, recognizes “...human capital development” as one of the top priorities [2]. this situation indicates that attention is paid to the development of human capital at the level of state policy in our republic and significant investments are made for these purposes. effective use of human capital ensures the economic growth of the organization and increases the efficiency of its activities. human capital appears as a special resource that provides additional benefits if used correctly as direct capital. this, in turn, shows that the development of human capital must emerge as the main factor of economic development. in economically developed countries, the share of human capital in national wealth is about 80 percent. in this respect, special attention is paid to the development of human capital in the developed countries of the world. materials and methods economic research methods such as the study of research conducted by world scientists and economists on the human capital and investments directed to it, data collection, analysis of collected data, synthesis, and logical thinking were widely used. results of studies a number of scholars have expressed different opinions about human capital and the investments made in it. in the 18th century, adam smith, one of the founders of modern economic theory, wrote about the importance of human capital in his work “an inquiry into the nature and causes of the income of population”: in his opinion, fixed capital consists not only of machines and tools of labor, useful buildings and land, but also “the acquired and useful abilities of all members of society or population”. these abilities belong not only to the person who possesses them, but also become part of the wealth of the entire society to which the person belongs. “the dexterity and skill of the worker can be viewed from the point of view of machines and equipment in production that shorten or facilitate labor. although they also require certain expenses, they compensate for these expenses with a profit [3]. in the 1950s and 1960s, when economists began to look at the labor market in a new way, a revolution in the study of human capital took place, writes co-author gary becker. rather than assuming that differences in earnings primarily reflected whether workers were doing “good” or “bad” jobs, the human capital approach assumed that earnings primarily measured the amount of investment workers made in their skills and knowledge. according to this view, earnings increased with the amount of money invested in education and training. in this interpretation, “good jobs” were jobs filled by workers who had invested heavily in human capital [4]. revolutionary views on human capital were based, in addition to g. becker, on the research of theodor schultz, one of the nobel prize winners in economics, and j. mintzer, one of the founders of labor economics. thus, before schultz's work on human capital, the main focus of the economic development literature was on the accumulation of physical capital. however, schultz shifted his research attention to investing in skills and knowledge, because, in his opinion, they were very important for economic development [5]. just as the accumulation of personal human capital leads to individual economic growth (income growth), so too does the corresponding social or national aggregates, mincer wrote. he emphasized that the growth of human capital is both a condition and a result of economic growth. human capital american journal of business management, economics and banking volume 36 may2025 p a g e | 92 www.americanjournal.org involves not only the transmission of existing knowledge, but also the formation of new knowledge that serves as a source of innovation and technical change, sets all factors of production in motion, and ensures global economic growth. mincer also analyzed the relationship between education and work experience. this relationship suggests that as a person ages, he or she accumulates knowledge that helps increase his or her income (salary), but as retirement approaches, investment in education decreases and the income from it declines. the equation that reflects the relationship between the duration of education and the relative level of income is named after mincer and has become one of the most widely used equations in economics [6]. given that the capital-based economy is being replaced by a “talent economy” in the context of the introduction of artificial intelligence, it becomes clear that it is precisely the digital development of human capital that needs to be prioritized. in such circumstances, it is important to prepare the working population, primarily young people, to live and work in the new technological era, and to constantly develop their digital skills [7]. the development of digital technologies and the introduction of artificial intelligence are associated with the fact that they give impetus to the formation of digital skills and, as a result, increase the potential for the digital development of human capital. the potential of human capital depends, first of all, on the institutional environment that determines the conditions for the development of human capital at each stage of human life (family institution, social and professional institutions) [8]. analysis and results in the period of scientific and technical progress and socio-economic development, human capital is becoming a necessary factor that determines the future of the country. human capital is the foundation of sustainable economic growth and the driving force behind innovation. investments in human capital are investments made in increasing and developing the abilities, qualifications of individuals, the main goal of which is to increase labor productivity [12]. investment in human capital refers to the strategic allocation of resources, including time, energy, and financial means, to help develop and improve an individual's knowledge, skills, education, and health. this concept recognizes the inherent value of individuals and emphasizes the long-term benefits, both individually and at the community level, that result from investing in their growth and well-being. figure 1. the main directions of investment in human capital areas of investment in human capital: education and training research and innovation develop-ment of knowledge and skills promote inclusion health care happy life american journal of business management, economics and banking volume 36 may2025 p a g e | 93 www.americanjournal.org education contributes to the cultural development of people by helping them become mature and responsible citizens, by helping them to recognize values and appreciate their own lives. education can also improve the skills that people use to work and manage their personal affairs, and such improvements help to increase national income. one of the distinctive features of a modern economy is the growth of human capital, because it is impossible to have successful agriculture and developed industry without a large investment in people. developing knowledge and skills is another important area of investment in human capital. of course, formal education is not the only way to invest in human capital. workers also learn and are trained outside of school, especially in the workplace. even graduates of higher education institutions often leave school unprepared for the labor market and must be matched to their jobs through formal and informal training programs. on-the-job training can range from a few hours for simple jobs to years for more complex tasks, such as engineering. research shows that on-the-job training can significantly increase the earnings of workers as they gain more experience on the job. columbia university economist j. mincer estimates that total investments in on-the-job training could amount to more than $200 billion a year, or about 2 percent of gdp. investing in health and well-being is also an integral part of human capital development. access to quality health care, preventive measures and the promotion of a healthy lifestyle help to increase labor productivity and reduce the number of working days lost due to illness. poor health reduces productivity, as physically weak and sick workers cannot fully realize their abilities, which is why organizations invest in the health of their employees. research and innovation are also crucial for investing in human capital. investment in research and development (r&d) stimulates innovation and technological breakthroughs, ensuring economic growth. supporting research institutions and encouraging scientific discoveries and innovations creates the conditions for the development of human capital. in the process of scientific development, not only intellectual innovations are implemented, but also new opportunities and horizons are opened up for the people participating in them. in the information society, science develops human capital. furthermore, promoting social and economic inclusion is an important aspect of investing in human capital. efforts should be made to ensure equal access to opportunities and resources, regardless of gender, ethnicity, and socio-economic background. inclusive policies and programs ensure that all individuals have the opportunity to realize their potential and contribute to society. human capital is the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as contributing members of society. investing in people through improving nutrition and health care, providing quality education, creating new jobs, and developing skills helps develop human capital, which is key to eradicating extreme poverty and building more socially inclusive societies [13]. investing in human capital involves the joint efforts of governments, businesses, and individuals. governments develop policies, allocate funds for education and health care, and create a favorable environment for skills development. businesses, recognizing that qualified and motivated employees contribute to success, invest in the training and development of employees. individuals can also invest in their human capital through self-management, continuous education, and active personal and professional development. the effectiveness of the development of the economy of an enterprise and a country largely depends on the amount of funds allocated for the development of human capital, as well as the timely allocation of these funds. this type of investment brings significant, long-term, and american journal of business management, economics and banking volume 36 may2025 p a g e | 94 www.americanjournal.org inextricable economic and social benefits. therefore, such investments are considered the most beneficial from the point of view of the individual, the enterprise, and society as a whole. by increasing investment in human capital, one can hope to improve the quality of innovative resources, and subsequently increase the effectiveness of them. conclusion and suggestions a number of conclusions and recommendations have been formulated on the importance of investments in human capital in the context of an innovative economy. they are as follows: 1. by directing investments in human capital, it is possible to increase the well-being of the population and ensure the achievement of sustainable economic growth. 2. the increase in the effectiveness of investments in human capital affects the growth of national income, which in turn affects the economic development of the country. 3. investments in human capital are crucial for sustainable economic growth, social progress and individual well-being. 4. by recognizing the value of individuals and actively investing in their development, societies can create a more prosperous and just future. 5. the effectiveness of economic development largely depends on the amount of funds allocated in a timely manner for the formation and development of human capital. 6. in an innovative economy, investing in developing people's modern knowledge and skills and training a globally competitive workforce will benefit the country for many years to come. references 1. speech of the president of the republic of uzbekistan shavkat mirziyoyev at the 78th session of the un general assembly. 20.09.2023. (https://president.uz/uz/lists/view/6679). 2. decree of the president of the republic of uzbekistan dated january 28, 2022 no. pf-60 "on the development strategy of new uzbekistan for 2022-2026". (https://lex.uz/docs/5841063#584387). 3. adam smith. issledovanie o prirode i prichinax richatka narodov. per. s eng., m., 1962. 4. becker, gary s. human capital: a theoretical and empirical analysis, with special reference to education. 2d ed. new york: columbia university press for nber, 1975. 5. theodore w. schultz. investing in people: schooling in low-income countries. economics of education review. volume 8, issue 3, 1989, pp. 219-223. (https://www.sciencedirect.com/science/article/abs/pii/0272775782900012). 6. mincer, jacob. "investment in u.s. education and training." nber working paper no. 4844. national bureau of economic research, cambridge, mass., 1994. 7. abdurakhmanov k.kh. transformation rynka truda v usloviyax vnedreniya iskusstvennogo intellecta. the economy is working. volume 10, number 2, february 2023. russian journal of labor economics issn 2410-1613 8. goyibnazarov s.b. improving the institutional model of drivers of digital development of human capital. actual problems of social and humanitarian sciences. electronic magazine. #4. 2023 year. (https://doi.org/10.47390/sp1342v3si4y2023n23). 9. asamkhodjaeva sh.sh. efficiency indicators of investments in human capital. journal of "economy and education", no. 1, 2023, 24(1), 102–106. (https://doi.org/10.55439/eced/vol24_iss1/a14) https://doi.org/10.55439/eced/vol24_iss1/a14 american journal of business management, economics and banking volume 36 may2025 p a g e | 95 www.americanjournal.org 10.https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-projectfrequently-asked-questions#2 11. https://www.globalinnovationindex.org/home 12. https://www.wipo.int/edocs/pubdocs/en/wipo_pub_2000_2022/uz.pdf https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions#2 https://www.vsemirnyjbank.org/ru/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions#2 https://www.globalinnovationindex.org/home american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 29 www.americanjournal.org improving the consolidated financial reporting and audit methodology avazov ilkhom associate professor, phd of “audit” department of tashkent state university of economics avazov.ilkxom@mail.ru a b s t r a c t k e y w o r d s in the process of presenting a consolidated financial report prepared in accordance with international standards, conclusions and recommendations are developed on the problems and their solutions that have arisen in the process of conducting an audit, improving the audit quality control system. audit process, financial reporting, consolidated financial reporting, external audit, international financial reporting standards, international auditing standards, joint-stock company, audit quality assessment. introduction significance and importance of the topic the main goal of the economic reforms carried out in our country is to accelerate the economic activity of economic entities operating in various forms of ownership, transfer property from state ownership to the non-state sector, and thereby create various self-managed private enterprises. in this case, it is not a secret of using some methods to anyone that the expropriation and privatization of property is carried out by free transfer of property, sale of the enterprise on preferential terms, sale of shares, leasing of enterprises, sale of small enterprises at auction etc. therefore, it is important to increase the level of integration of our country into the world community, to present the financial report based on international financial reporting standards in accordance with its requirements. as a result of the formation and development of market economy relations, effective organization of financial and economic activities of economic entities with different forms of ownership and provision of professional auditing services is one of the most urgent issues of today. it is well known that foreign investors are not interested in small enterprises operating in our country, so it is necessary to establish large enterprises, or if not, to increase the branches of small enterprises and turn them into large ones (joint-stock companies). in such conditions, the effective implementation of audit services and audit activities will largely depend on the quality of the audit. because the quality american journal of business management, economics and banking volume 42 november2025 p a g e | 30 www.americanjournal.org of these audits is a factor in creating a comfortable environment for external information consumers, including investors. in the republic of uzbekistan, it is important to prepare and present financial statements of joint-stock companies based on international financial reporting standards, to control the quality of their audit during the audit, and to form a quality control system based on international standards and to improve it. the need for an audit ensures the reliability of key indicators in the process of attracting foreign investors. in this regard, during the audit of financial statements through an external audit, the main attention is paid to the quality of the audit. because its quality allows an objective assessment of consolidated financial statements and creates favorable conditions for attracting foreign investors. however, since the issue of international audit quality and the procedure for evaluating the audit quality has not been developed in our country, it is necessary to work on this issue. controlling the quality of audits depends on the quality of the information obtained by the auditor and the reliability and accuracy of the information collected by the auditor. resolution of the president of the republic of uzbekistan, registered as a pq-4611 and dated february 24, 2020 "on additional measures for the transition to international financial reporting standards" jointstock companies, commercial banks, insurance organizations and legal entities included in the category of large taxpayers, starting from january 1, 2021, organize accounting based on the isfr (international standards of financial reporting) and prepare financial statements on the basis of the isfr from the end of 2021, legal entities for which earlier deadlines for the transition to the isfr are provided for in the legislation cited as an exception [1]. in addition, an appendix on the implementation of this decision is provided, based on this appendix, specific assignments to the higher and relevant bodies and deadlines for the execution of this assignment are given. in such conditions, attracting foreign direct investments, further increasing the efficiency of joint-stock companies, ensuring the openness, transparency and attractiveness of consolidated financial statements prepared by joint-stock companies for the investors involved, introducing modern corporate management methods creating favorable conditions for strengthening the role of shareholders in the strategic management of joint-stock companies, there is no effective system of external control of the quality of audit organizations' activities, which affects the further development of audit, the importance of management decision-making and audit services in improving the quality of corporate management, work and auditors' wrongdoing hinders the improvement of behavior. in this decision, the task of quality control of annual financial statements of joint-stock companies is assigned to the compliance with the isfr. methodology in increasing the transparency of consolidated financial statements, the qualitative characteristics of financial information, including reliable presentation of data, data relativity, auditability of reporting data, timeliness and data clarity, ensure that the information included in the reporting forms is reliable and external users can make confident decisions about the business entity. as we know, it is necessary for every enterprise to submit the financial report at the end of the financial year to the higher authorities. therefore, whether it is a small business or a large enterprise, it still presents an annual financial report. but large enterprises and companies operating in our country are american journal of business management, economics and banking volume 42 november2025 p a g e | 31 www.americanjournal.org required to prepare their financial reports based on international standards. in the development of economic diversification processes, long-term relations are one of the important issues for the continuous operation of companies and the availability of competitive products. in this case, the main factor that creates the need for the preparation of consolidated financial statements prepared by companies is the expansion of the range of relations. currently, one of the important issues is to prepare a consolidated financial report by joint-stock companies and ensure its transparency. when preparing and presenting a financial report according to international standards of financial reporting, the following steps must be taken: 1. planning the transition process of ismr; 2. development of methods and means of transition to ismr; 3. gathering information and preparing financial reports; 4. preparing experts for consolidated financial statements; 5. improvement of the process of preparing financial reports on ismr. the sequence of actions performed in the above steps is as follows. the activities to be carried out in the first stage are to determine the purpose of preparing a report on ismr, to appoint a group of employees responsible for preparing a report on ismr, to determine the date of transition to ismr, to determine the powers and responsibilities of the consolidation team. in the second stage, development of consolidation methodology and detailed accounting policy and specific methodological instructions for each object of the account, resolution of the organizational issue of the person leading the process of transition to ismr, development of means of transition to ismr it will be necessary to develop the necessary information base, transformation and consolidation models for output and data collection. in the third stage, for collecting data for the reporting period, he completes information documents, transforms financial reports into the financial statements, and consolidates the transformation data of the company in the group for the selected period. at the fourth stage, training a group of experts on the transformation and consolidation of financial statements based on national standards, conducting an educational course on the theory of ismr, presenting the main differences between ismr and nsa (national standards of accounting) to the management of the enterprise, collecting data process, it will be necessary to ensure mutually acceptable operation of internal control standards. at the fifth stage, it is necessary for experts to constantly study international standards, improve the process of preparing financial statements based on ismr, prepare for automation of financial statements, and conduct mutual optimization of internal control methods in the process of data collection. general rules of consolidation when preparing a consolidated financial statement in accordance with the 10th ismr, the company consolidates the financial statements of the main and subsidiary organizations by each line by adding analogous items of assets, liabilities, capital, income and expenses. when preparing a consolidated financial statement, the financial statements of the parent company and subsidiary companies must be drawn up on the same reporting date. if the reporting date of the parent company differs from the reporting date of the subsidiary company, the subsidiary company is required to prepare an additional financial report to the reporting date of the parent company in accordance with the 10th ismr. american journal of business management, economics and banking volume 42 november2025 p a g e | 32 www.americanjournal.org in such cases, the impact of significant transactions or events that occurred between this date and the parent company's reporting date is taken into account by making adjustments. consolidated financial statements are formed on the basis of the group's uniform accounting policy. if the accounting policy of any company in the group does not correspond to the accounting policy of the group, in such cases, it is appropriate to introduce corrections for the purposes of reporting consolidation. therefore, it is important to conduct an audit of consolidated financial statements. choosing a method that reduces the level of initial inherent risk of the audit, allows to significantly reduce the number of additional checks, management tools and necessary analytical operations. currently, in our country, it is necessary to take into account the audit risk in the general set when auditing the consolidated financial report prepared by the joint-stock company. if the application of analytical procedures during the audit is carried out using highly consolidated financial statement data, the results of the audit risk assessment should only take into account significant misstatements. in such a situation, these results are considered together with other information collected during the identification of significant audit risks, and the consolidated financial statements, including the financial statements prepared by the auditor of the main subsidiary companies, serve as the basis. in the process of checking the financial statements of joint-stock companies, it is necessary to organize control over the quality of information received and collected by the auditor, as well as analytical operations in the following sequence: -arithmetical and logical verification of the correctness of financial reports; -checking the quality of indicators by stages (report, balance on synthetic accounts, turnover sheet on synthetic accounts, general ledger on analytical accounts, turnover sheet on analytical accounts, card, personal account information); -to control the quality of the audit, all steps recommended for quality control should be performed sequentially. literature review if we analyze the opinions and comments expressed regarding the quality control of audit activity and audit risk, we can see the following situation. the issue of audit quality control is primarily organized by international quality control standards (xsns), which defines quality control standards and establishes a guide to the audit organization's quality control system [2]. according to a.ibragimov on quality control of audit activity, taking into account the audit practice, the quality of the services provided by the auditor and the quality of the audit conclusion are a direct result of the auditor's professional skills and experience [3]. according to b.a. khasanov and s.s. nasretdinov: "the purpose of the consolidated financial report is to form complete information about the property and financial situation of the group of parent and subsidiary companies, as well as the results of their activities. noting that this report is intended for internal and external users, head of the enterprise, heads of the parent and subsidiary companies, employees of the enterprises included in it, potential investors and creditors, suppliers of goods, buyers, the state, as well as other interested users. 'tadi[4]. in this regard, the russian economist s. bychkova, the audit quality is determined by its simultaneous compliance with audit standards and the price of audit services, that is, the economist suggests studying the issue of audit services in quality control [5]. in the same place, american journal of business management, economics and banking volume 42 november2025 p a g e | 33 www.americanjournal.org if we look at the opinion of d. pakhomov, he recognizes that quality corresponds to the hidden needs of buyers [6]. v.v. kovalev, vit.v. kovalev "the following factors are the basis for the practical use and further improvement of consolidated financial statements: the absence of obstacles in the use of new accounting methods; awareness of the expediency of business integration processes; approval of the idea of unification by major stock exchanges," he noted. [7]. a.v. arvachev, the audit of the consolidated financial report is carried out in three stages, and in its initial stage, before signing the contract with the parent company, he gets acquainted with the organizations that are part of the group, and also analyzes the procedure for preparing the general plan and program of the audit [8]. in conclusion, it can be said that a deeper theoretical study of the quality control of audit and audit activity remains the demand of the time. from this point of view, it is important to study advanced foreign experiences in this regard and apply their conclusions in the conditions of uzbekistan. therefore, the quality of the services provided by the auditor and the quality of the auditor's conclusion is a direct result of the professional skills and experience of the auditor. from the above points, we can see that if audit quality control is improved, it not only continuously monitors the effectiveness of the audit quality control system, but also evaluates it. it helps to effectively organize the external audit and internal control system in joint-stock companies, thereby their general activity. discussion of research results according to the results of the study, the international audit standard no. 220 "controlling the quality of the audit of financial statements" was developed for quality control (isa), where international audit standards are in force in uzbekistan. the purpose of this standard is to ensure that the audit is in accordance with professional standards and relevant requirements of legislation and regulatory bodies, and that the published audit report (summary) is appropriate to the circumstances. the requirements of this standard are mandatory for all auditing organizations when conducting an audit, and it provides for the preparation of an official audit report. quality control of the auditor's work is carried out in the following forms: quality control of the auditor's work chief auditor controlling the work of the assistant auditor control of audit work by the audit organization external control american journal of business management, economics and banking volume 42 november2025 p a g e | 34 www.americanjournal.org if we consider this issue at the international level, one of the main standards, the international standard of quality control (isqc), discloses the financial statements of the auditing organization and discloses its obligations under the quality control system for interpretation, assurance and related service contracts. international standard (isqc) is also intended to help the audit firm in the following matters: • understanding what needs to be done; • decide whether more effort is needed to gather information to achieve the goal. based on the study of the published literature on audit activities, we can get a broader definition of the audit process as follows: "audit is a process performed by a person with certain qualifications and independent auditing skills, who collects appropriate information. it is a complex process that performs the cloak and evaluation and gives its conclusions based on the rules of the country, corresponding to the expression of numbers in the economic system. when classifying an audit, it can be divided into the following specific types: according to data users; in accordance with the requirements of the law; according to the audit object (type of enterprise activity); according to the aim. at the same time that business entities are expanding, the increasing complexity of business operations, the strengthening of the control environment in countries and the improvement of information technologies are also affecting the capabilities and responsibilities of internal auditors. significant differences between external and internal audits are distinguished by their status, main responsibilities and the period of conducting audits. therefore, the quality of the service provided by the auditor and the quality of the auditor's conclusion is a direct result of the auditor's professional skills and experience. if the internal audit service is properly organized and the results of the internal audit service are issued on time, the economic efficiency of enterprises will increase. conducting operational audits by audit organizations and internal auditors allows to evaluate the activities of enterprises and determine the effectiveness of their long-term strategic plans. as can be seen from the above, if the audit improves quality control, it not only continuously monitors the effectiveness of the audit quality control system, but also evaluates it. it helps to effectively organize the audit and internal control system in joint-stock companies, thereby the general activity of the joint-stock company. in short, in order to modernize economic relations and deepen reforms in our country, especially in order to effectively organize financial and economic activities in the conditions of widespread involvement of the population in business activities, to provide them with advice, guidance, legal and other assistance, shareholding the service needs of qualified auditors for the activities of societies and other types of assistance are increasing. therefore, it is necessary to further improve auditing activities on the basis of international standards. it will also be necessary to improve the quality of audit services. conclusions a deeper theoretical study of audit and audit activity quality control remains the demand of the time. from this point of view, it is important to study advanced foreign experiences in this regard and apply their conclusions in the conditions of uzbekistan. american journal of business management, economics and banking volume 42 november2025 p a g e | 35 www.americanjournal.org in international practice, special attention is paid to improving the foundations of consolidated financial reporting based on international standards of financial reporting. in this regard, it is necessary to achieve a unified methodical order in recognizing, evaluating and reflecting in the consolidated financial statement the assets, liabilities, income and expenses that are the objects of the financial statement, as well as the transactions affecting their change, a report that meets the requirements of the international standards of the financial statement, the issues of introduction of forms should not be left out. based on the experience of developed countries, it will be necessary to develop methods for determining the forms of financial reporting by major international auditing organizations and the methods of preparing consolidated financial reporting by parent companies and the procedures for its audit, and using their experience. however, the issues of bringing financial reporting information into a single system of consolidated financial reporting based on international standards are not sufficiently regulated in our country. at the same time, practical measures to organize the activities of audit organizations are implemented slowly in some cases. the state of work in the audit system does not meet the growing requirements, audit has not yet become a practical tool for realistic assessment of business performance. therefore, in accordance with the law of the republic of uzbekistan "on auditing activities" and the need to further develop the independent audit system, further increase the quality of the audit services market, use effective methods of management of audit organizations, strengthen and increase responsibility for the results and impartiality of audits indicates. references 1. decision of the president of the republic of uzbekistan dated february 24, 2020 no. pq-4611 "on additional measures for the transition to international financial reporting standards". 2. international standards of auditing and quality control. // "samo-standard" printing house. 2014. p.556 3. vahobov a.v., ibragimov a.k., rizaev n.k. tijorat banklarining tashqi auditiga moliyaviy hisobotning xalqaro standartlarini joriy etish metodikasi. monografiya. t.: moliya, 2011. -188b. 4. xasanov b.a., nasretdinov s.s. konsolidatsiyalashtirilgan (umumlashtirilgan) buxgalteriya hisoboti. o‘zbekiston iqtisodiy axborotnomasi. toshkent, 2003. №10. b. 14-16. 5. бычкова с.м., понимание качества в аудите и бухгалтерском учете.//аудиторские ведомости, №3/2005.-москва 2015. -36-37с 6. пахомов д., качество аудиторских услуг: организatsiя контроля // финансовая газета. №/2001. -москва: 2001. -14-15с. 7. ковалев, в. в., ковалев, вит.в. анализ баланса. – 3-е изд., перераб. и доп. – москва: проспект, 2016. – 316 с. 8. арвачев, а.в. развитие теории и методики аудита консолидированной отчетности: дис. … канд. экон. наук: 08.00.12 / арвачев александр викторович. – воронеж, 2009. – 173 с. 9. гутцайт е.м., внешний контроль при аудите качества: // таблицы аудиторов. №4/2004.москва: 2004.-23-26с. 10. аренс е.а., лоббек д.к., (2011) аудит, москва: «финансы и статистика», 560 с. 11. qo’ziev i., avazov i. the theoretical bases of formating consolidated financial report //international finance and accounting. – 2018. – т. 2018. – №. 4. – с. 19. american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 13 www.americanjournal.org integration of circular economy and digital technologies in the oil and gas sector yuldashov sabir faizullaevich, doctor of philosophy in economics (phd), tashkent state technical university a b s t r a c t k e y w o r d s the circular economy is considered as a model of an economic system that is able, on the one hand, to respond to the challenges facing society, and on the other hand, to ensure a sufficiently high efficiency of the activities of economic entities. in practice, the process of transition to a circular economy is rather slow. the article analyzes the integration of the circular economy and digital technologies as drivers for the creation of closed production cycles. circular economy, sustainable development, oil and gas sector, waste, digital transformation, effects of the circular economy. introduction today, despite the accelerating development of new economic models (green, low-carbon, circular, etc.) based on the principles of sustainable development, the oil and gas sector continues to play a key role in ensuring the modern life of mankind, since the need for hydrocarbons does not disappear. the oil and gas sector has grown significantly in recent years, so it is especially important for it to make serious adjustments to the way it does business. this sector is one of the largest in the world, with growing revenues and costs needed to provide consumers with energy. due to the high-risk nature of oil and gas production activities, companies are constantly working to reduce their adverse impact on the environment and the social environment. there are some serious problems on the way to conducting your business: · high volatility of prices for hydrocarbons; · increased pressure on managers from shareholders who focus on value creation rather than output due to low return on investment; · the complexity of the drilling and production process; · increasing demand for hydrocarbons in many regions; · compliance with health, safety and environmental requirements remains critical – especially in the current environment of volatile prices and cost savings; · instability of fiscal conditions; · the level of development of research and development work and innovation; · collecting, interpreting, and managing an increasing amount of data. american journal of business management, economics and banking volume 36 may2025 p a g e | 14 www.americanjournal.org main part the peculiarity of the oil and gas sector is that most of the operating activities are associated with a negative impact on the atmosphere the release of a huge amount of greenhouse gases (ghg), mainly methane, which can manifest itself during drilling and production, leaks in christmas trees and pipelines, as well as during an accidental release. which emit a significant amount of greenhouse gases. therefore, countries that produce carbon-intensive products need to introduce the principles of the socalled circular carbon economy into their business models. in order to make progress in addressing the sustainability challenges of the oil and gas sector, such as the depletion of natural resources, increasing greenhouse gas emissions, and high rates of waste generation, it is necessary to move from the usual linear economy model (extraction – production – distribution – consumption – waste) to a circular economy model (circular economy), which uses optimization of the production process, reuse or sharing of the product and recycling waste since the late 1970s, the concept of a circular economy has been gaining momentum in modern economic systems and production processes. according to experts from the ellen macarthur foundation, by 2025 the circular economy could provide an annual increase in the income of the world economy of more than $1 trillion. moreover, the transition to a circular economy will create huge opportunities for modernizing production and introducing industrial innovations, ensuring an annual productivity growth of 3%, and, as a result, an increase in gdp – in europe alone by 7 percentage points relative to the baseline scenario. such impressive figures are the best motivation for the transition to a circular economy. the main tasks facing the oil and gas sector are to ensure a stable supply of hydrocarbon resources to various consumers, as well as to develop and ensure the reliable operation of the oil pipeline system. in the circular economy, an ecosystem of materials is created – what used to be considered waste acquires value. but such ecosystems are complex and involve many dependencies and feedback loops. therefore, digital transformation is especially needed to build such ecosystems, effectively manage them and make business decisions. digital transformation is the introduction of modern digital technologies into the business processes of socio-economic systems at all levels. this approach implies not only the installation of modern hardware or software, but also fundamental changes in approaches to management, corporate culture, and external communications. in the course of digital transformation, electronic technologies and services, as well as voluminous, multi-sectoral data presented in digital form, the processing and analysis of which make it possible to significantly increase efficiency and quality in the production and consumption of goods, works and services, as well as in management procedures, in comparison with traditional forms of management, become key factors of economic activity. on a global scale, the oil and gas industry produces a large amount of waste in the form of associated water, oil sludge and flue gases. converting waste into value-added products, reducing environmental impact, and supporting sustainability in the oil and gas industry is paramount. the role of digital technologies in creating a circular economy in the oil and gas sector implies the use of digital tools, platforms and systems to facilitate the transition to a more sustainable and circular economic model. this involves harnessing the power of technology to optimize resources, reduce waste, and promote the reuse and recycling of products and end-of-life equipment. american journal of business management, economics and banking volume 36 may2025 p a g e | 15 www.americanjournal.org digital tools allow for better tracking, control, and management of assets throughout their lifecycle. this includes real-time data collection, analysis, and optimization of resource flows, allowing for more efficient use of oil and gas, energy, and water. digital platforms and blockchain technology provide greater transparency and traceability of supply chains. this helps to identify inefficiencies, reduce waste, and ensure responsible procurement and production practices. digital solutions enable efficient waste management processes, including tracking, sorting and recycling. smart waste management systems can optimize collection routes, reduce waste in landfills, and promote recycling and recovery. conclusion the circular economy can be looked at from the point of view of the principles and corresponding solutions that its apologists intend to extend to the entire economy of our planet. we usually think that the circular economy is only about how to turn waste into income. circular economy or a closed cycle is about optimizing processes, and about shared use, and about the availability of services, and about the environment. the transition to a circular economy for the oil and gas sector is now gradually gaining momentum. despite budget constraints and vague government environmental policies, green innovations are regularly invented by scientists around the world. it should be noted that it is impossible to do without traditional energy sources, but it is necessary to gradually introduce innovations and invest in the creation of low-carbon and energy-efficient technologies, increase the share of alternative energy sources in the fuel and energy complex and introduce drilling waste management systems. thus, by harnessing the potential of digital technologies, oil and gas companies are helping to accelerate the transition to a circular economy, which will reduce resource consumption, minimize waste generation and improve sustainability. for example, digital technologies can contribute to energy efficiency, and can also be used to reduce greenhouse gas emissions in the transport, construction, agriculture and energy sectors. societal benefits of circular business models include: – reduced consumption of primary raw materials; – energy savings and reduction in the cost of products; – reduction of pollutant emissions and the volume of production and consumption waste. references 1. kumar n. m., chopra s. s. leveraging blockchain and smart contract technologies to overcome circular economy implementation challenges //sustainability. 2022. т. 14. №. 15. с. 9492. https://doi.org/10.3390/su14159492. 2.huynh p. h. enabling circular business models in the fashion industry: the role of digital innovation //international journal of productivity and performance management. 2021. https://doi.org/10.1108/ijppm-12-2020-0683. 3.ellsworth-krebs k. et al. circular economy infrastructure: why we need track and trace for reusable packaging //sustainable production and consumption. 2022. t. 29. c. 249-258. https://doi.org/10.1016zj.spc.202l10.007. 4.. бабкин а.в., глухов в.в., шкарупета е.в. методика оценки цифровой зрелости отраслевых промышленных экосистем // организатор производства. 2022. т. 30. № 3. с. 720. https://doi.org/10.1016zj.spc.202l10.007 american journal of business management, economics and banking volume 36 may2025 p a g e | 16 www.americanjournal.org 5.taxonomy n. h. s. g. essence, application and effectiveness //british journal of global ecology and sustainable development. – 2024. – т. 24. – с. 84-87. 6. хашимова с. н. пандемия шароитида рақамли иқтисодиётни ривожлантириш //экономика и финансы (узбекистан). – 2022. – №. 3 (151). – с. 77-80. 7. xashimova s. sirkulyar iqtisodiyot barqaror rivojlanish mexanizmi sifatida //yashil iqtisodiyot va taraqqiyot. – 2024. – т. 2. – №. 12. 8. xashimova s. n. et al. the essence and stages of development of the concept of" green" economy //international journal of scientific trends. – 2024. – т. 3. – №. 6. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 166 www.americanjournal.org role of corporate securities in capital market otakhonova shokhyora khamidullakhon kizi phd, “corporate finance and securities” department, tashkent state university of economics, uzbekistan email: otaxonovashohyora@gmail.com a b s t r a c t k e y w o r d s this article studies role of corporate securities in capital market. moreover, types and forms of corporate securities, some aspects of different securities are analyzed in detail. scientific conclusions and recommendations are presented on the basis of analyses. share, bond, capital, capital market, securities, corporate securities, corporate securities operations. introduction in this era of accelerating globalization, large companies are directing twice as much of their capital into the economies of developing countries than into developed countries. despite the rapid growth of investment flows in developing countries, factors such as capitalization of stock markets, transparency, liquidity, volatility of securities prices, and high transaction costs complicate the process of using the optimal method of asset valuation. the sharp fluctuations in assets on world stock markets are explained by the fact that the capitalization of stock markets in developing countries is increasing year by year. however, the mechanism of issuing securities and selling them on the stock market is not being effectively used. so learning the topic is essential for the development of corporate securities market. literature review in this regard, it is necessary to emphasize that the content and essence of securities are interpreted differently in various economic literature. this is fully confirmed by the following: “securities are monetary or commodity documents (stocks, bonds, letters of credit, bills, checks, etc.) that give their owner the right to ownership of property and the right to receive a certain amount of money in the form of income” [1]; “securities are a certificate legally confirming the right to receive expected future income under certain conditions, that is, a certificate of ownership” [2]; “securities reflect real economic relations in the processes of distribution and redistribution between production entities, confirm the investment of funds in the economy and its sectors, reflect property and non-property, share and debt relations, and bring a certain amount of income to the owner” [3]; “a security is a document reflecting the property relations associated with it, which can circulate american journal of business management, economics and banking volume 35 april 2025 p a g e | 167 www.americanjournal.org independently on the market, be the object of purchase and sale and other sales, serve as a source of permanent and one-time income, and be a type of money capital” [4]. “securities – a document issued by the issuer in paper or electronic form, evidencing indebtedness, investments made, obligations assumed, and other property and non-property relations” [5]; “securities are property and related non-property rights in the field of raising, redistributing and repaying funds in the form of debt or equity capital by business entities, confirmed in a separate manner in the form of a document (form) or in the form of entries in accounts in specialized organizations (depositories)” [6]; “a security is, in general, a monetized (backed by money) asset with a value (price) and properties equivalent to the real basis (“twin-analog”), provided with a special economic-informational-legal mechanism, characterizing, shaping and developing financial relations in its own market, ensuring the efficient distribution and redistribution of financial resources. "a means of ensuring the distribution of income, in certain cases in certain forms, manifested in various forms, forms and contents, both as investment capital (assets, special fund assets, securities portfolio), as a means of payment, and as a separate stock market product” [7]. securities also have their own definition in legislation. for example, the law of the republic of uzbekistan “on the securities market” provides a detailed definition of securities: “securities are documents that confirm property rights or debt relations between the legal entity that issued these documents and their owner, provide for the payment of income in the form of dividends or interest, as well as the transfer of rights arising from these documents to other persons. "considers the possibility” [8]. analysis and results it is advisable to consider the advantages and disadvantages of financing enterprises through the issue of securities separately for issuers and investors. in addition, these advantages and disadvantages can be systematized for each type of securities. an important source of financing of a joint stock company is funds received from the issue and sale of shares. the advantages of financing a joint stock company through ordinary shares for the issuer are as follows: if the enterprise is a joint stock company, it has the opportunity to mobilize a very large amount of financial resources, since shares can be issued in an unlimited amount. recently, the ipo (public offering of shares) mechanism has become quite popular. with its help, enterprises not only attract large financial resources for their development, but also enter the foreign capital market; the absence of strictly conditional, permanent financial payments. attracting funds through a bank loan usually requires fixed payments and leads to the constant use of the corresponding working capital. of course, the issue of shares creates an obligation to pay dividends on them. however, with the consent of the shareholders, the company can refuse to receive dividends until it is on its feet; capital stability. shares are a stable instrument. under normal circumstances, joint-stock companies are not obliged to return the funds invested by shareholders, which is not the case with bank loans or bonds. ordinary shares do not have a maturity date this is non-refundable fixed capital. it can be returned only in the event of liquidation of the company; increase in the investment attractiveness of the company. the authorized capital serves as a kind of guarantee of compensation for losses for the company's creditors; american journal of business management, economics and banking volume 35 april 2025 p a g e | 168 www.americanjournal.org popularization. the issue of shares and the conduct of an advertising campaign increase the awareness of the company not only among professional investors, but also among the general public. for example, in foreign countries, the implementation of ipo projects for most companies, in addition to attracting financial resources, is aimed at first becoming popular, which will subsequently help to attract larger funds. the advantages of financing a joint stock company through the issue of ordinary shares for an investor include: exercising the right to participate in the management of the company in exchange for the invested capital; receiving income from the company in the form of dividends; using the privileges granted by the company; exercising the right to a part of the property in the event of liquidation of the company. it is also necessary to list some disadvantages of financing a joint stock company through the issue of ordinary and preferred shares. disadvantages for the issuer in financing a joint stock company through the issue of ordinary shares: 1. decrease in the speed of decisions made. according to the legislation, as a rule, large transactions and transactions involving interests must be agreed upon with the supervisory board or the general meeting of shareholders. however, they take time to set up, so profitable large contracts or contracts with interest may go to other competitors due to the long negotiation of transactions in this jsc. 2. the possibility of increasing the cost of raising financial resources. an investment advisor is often involved in the preparation of the prospectus and other documents for the issue of shares. in many cases, jscs use the services of an underwriter to distribute (place) their shares. all this requires additional costs. 3. the use of debt capital allows the jsc to obtain funds with a fixed one-time financial cost, while when using common shares for financing, the company's net profit is always distributed among a larger number of shareholders over a long period of time. another important source of financing for a jsc is preferred shares, which reflect the characteristics of debt obligations and common shares. the share of preferred shares in the total volume of jsc's authorized capital should not exceed 25%. in the event of liquidation of the company, the claims of the holder of preferred shares are satisfied after the creditors, but before the obligations to the holders of ordinary shares. the advantages of financing a joint-stock company with preferred shares for the issuer are as follows: 1. flexibility. according to the law, the payment of dividends on preferred shares is not an unconditional obligation of the company. if the company is making a loss or is experiencing signs of bankruptcy, dividends may not be paid. when raising debt, interest must be paid regardless of the financial condition of the company. 2. open-endedness of actions. there is no deadline for the redemption of preferred shares. if capital is raised by issuing bonds or taking out a bank loan, they require repayment or redemption. 3. raising additional funds without granting the right to participate in the management of the company. holders of preferred shares participate in general meetings of shareholders with the right to vote only when certain issues are raised. american journal of business management, economics and banking volume 35 april 2025 p a g e | 169 www.americanjournal.org 4. the inability to force the company into bankruptcy. since preferred shareholders are deprived of voting rights, unlike ordinary shareholders, they are unlikely to cause any serious damage to the company. thus, the issue of preferred shares provides capital inflow, but control over the company is not lost and the jsc's debt does not increase. however, in this case, a strict dividend policy is required. at the same time, when financing a jsc through the issue of preferred shares, it is likely that the issuer will be subject to more stringent conditions than when paying dividends. an important place in the structure of financing a jsc through the issue of securities is occupied by funds raised on the basis of bonds. “corporate bonds are a special investment asset that represents a debt relationship between an investor and an issuer; they are freely traded on the stock market until they are fully paid off and have their own quotation; they have the following main investment properties: liquidity, reliability and profitability.” when a joint stock company is financed with corporate bonds, there are a number of advantages for the issuer. the main advantages of such financing of a joint stock company are that in this case the enterprise itself determines the important and unimportant conditions for attracting debt funds. these are, first of all, such parameters as the loan amount, term, repayment terms, and interest rate. when an enterprise receives a loan from a bank, the bank sets the conditions. obtaining long-term loans from a bank is a rather complicated matter. this is explained by the limited resource base of the bank. in addition, the cost of the loan can be significantly higher. in addition to interest on the loan, the intermediate official and unofficial transaction costs for its formalization lead to an increase in its cost. from this point of view, bonds become a source of cheap financing. table 1 comparative analysis of the advantages and disadvantages of external financing sources for enterprises № comparison criteria issuance of common shares issuance of corporate bonds bank loan 1 legal form restrictions joint-stock companies only joint-stock companies and commercial banks none 2 minimum period of operation none at least three years depends on bank credit policy 3 limitations on attracted funds none within the limit of equity capital depends on credit policy and collateral 4 requirement for a positive credit history not required not required may be required 5 requirement for collateral not required can be issued with or without collateral minimum collateral coverage must be 125% 6 obligation to pay income/dividends/interest may be applicable obligatory obligatory 7 right to participate in enterprise management arises not applicable not applicable 8 term of attracting investment unlimited fixed term fixed term source: done by the author american journal of business management, economics and banking volume 35 april 2025 p a g e | 170 www.americanjournal.org it should be noted that the decision to issue bonds can be delegated to the supervisory board by the general meeting of shareholders or, as established by its charter, by the board of directors. this, unlike the issue of shares, allows for faster fundraising. the issuer is not required to sell the entire issue at a single price. this is the flexibility of this financial instrument. depending on market conditions, bond prices can be increased or decreased, thereby raising the entire planned amount of debt funds. the issuer's costs associated with the placement of bonds are usually lower than when placing shares. a credit history is created and investment reputation is improved. the issuer of corporate bonds is not tied to creditors, which makes it easier to refinance debt if necessary and reduces the risk of losing control over the company. one of the disadvantages of financing through the issue of bonds for a joint stock company is the obligation to return the amount received from the investor and pay interest on it. however, this can be called a disadvantage conditionally, since the same conditions apply when obtaining a bank loan. the various sources of financing listed above directly affect how the company's capital structure is formed. it is necessary to make a decision after thoroughly analyzing the advantages and disadvantages of each of them. conclusions on the basis of the above-mentioned analysis the following conclusions are formed: 1. organizational structure flexibility: joint-stock companies have the most flexibility in raising funds, as both common shares and corporate bonds can be issued by these entities. bank loans, on the other hand, are not available to these companies unless they meet specific criteria set by the bank. 2. duration of financing: corporate bonds offer a fixed-term financing option, making them suitable for long-term investments. in contrast, the issuance of common shares provides unlimited duration, offering more flexibility in terms of time. bank loans are typically tied to the bank's credit policies, which may impose restrictions on the duration of the loan. 3. fundraising limits: the issuance of common shares does not have any specific restrictions on the amount of funds that can be raised. corporate bonds, however, are limited by the equity capital of the issuing company. bank loans are constrained by the lending institution’s policies and the collateral provided. 4. income payment obligations: issuing corporate bonds or obtaining a bank loan comes with the obligation to pay interest or dividends, making these funding options more burdensome in terms of financial obligations. on the other hand, the payment of income or dividends for common shares may be optional depending on the company’s performance. 5. investment attraction period: issuing common shares provides an indefinite period to attract investment, which can be advantageous for companies looking for long-term funding. in contrast, corporate bonds and bank loans are limited to specific terms, requiring the company to repay or refinance within a set timeframe. american journal of business management, economics and banking volume 35 april 2025 p a g e | 171 www.americanjournal.org references 1. national encyclopedia of uzbekistan. the letter "q". t.: "ome" state scientific publishing house. 2001. p. 149. 2. шарп у., александер г., бэйли дж. инвестиции: пер. с англ. – м.: «инфра-м», 2001. – xii. – с. 3. 3. миркин я. рынок ценных бумаг россии: воздействие фундаментальных факторов, прогноз и политика развития. – м.: «альпина паблишер», 2002. – с. 243. 4. алексеев м.ю. рынок ценных бумаг. – м.: «финансы и статистика», 1992. – с.5. 5. ядгаров т.д. депозитарная система рынка корпоративных ценных бумаг узбекистана и ее интеграция в международный рынок капитала: дисс. … канд. экон. наук. – ташкент: иэ ан руз., 2003. – с. 62. 6. бутиков и.л. қимматли қоғозлар бозори. – т.: «консаудитинформ», 2001. – б. 17. 7. шохаъзамий ш.ш. финансовый рынок и ценные бумаги. книга i. учебник. т.: «iqtisod-moliya», 2005. – 728 с. 8. law of the republic of uzbekistan no. zurq-387 "on the securities market" as amended on june 3, 2015, article 3. american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 1 www.americanjournal.org ways to improve the financing of fixed capital investments askar abdusalimovich yusupov independent researcher, tashkent state university of economics a b s t r a c t k e y w o r d s the article explores ways to improve the financing of investments in fixed capital. it analyzes current challenges in the allocation and utilization of financial resources, including insufficient private sector involvement, limited diversification of funding sources, and inefficiencies in investment management. the study highlights the importance of strengthening public-private partnerships, expanding the role of commercial banks and investment funds, and adopting innovative financial instruments to enhance investment efficiency. additionally, the article examines international best practices and their applicability to the context of uzbekistan, offering practical recommendations to optimize investment processes. the proposed measures aim to increase capital inflows, ensure financial sustainability, and support the modernization and competitiveness of the national economy. fixed capital, investment, financing improvement, financial resources, publicprivate partnership, investment efficiency, innovative financing, economic growth. introduction financing fixed capital investments is a key factor in ensuring sustainable economic growth, modernizing production capacities, and introducing innovative technologies. in many countries, the efficiency of investment processes largely determines the competitiveness of the national economy. despite recent improvements in uzbekistan’s investment environment, several challenges remain, including limited private sector participation, insufficient diversification of funding sources, and inefficiencies in allocating financial resources. improving the financing of fixed capital investments requires a comprehensive approach. strengthening public-private partnerships can mobilize additional resources and share investment risks. expanding the role of commercial banks, investment funds, and leasing mechanisms allows businesses to access long-term financing. moreover, introducing innovative financial instruments, such as venture capital, green bonds, and project-based financing, can enhance investment efficiency and attract foreign capital. learning from international best practices is also essential. countries like the united states, china, and singapore demonstrate the benefits of combining state support with market-based investment mechanisms, promoting transparency, and creating favorable conditions for private and foreign american journal of business management, economics and banking volume 42 november2025 p a g e | 2 www.americanjournal.org investors. adapting such strategies to uzbekistan’s context can improve the allocation of resources, accelerate industrial modernization, and strengthen overall economic resilience. analysis and result the table shows the dynamics of gdp, investments in fixed capital, and foreign direct investment in uzbekistan from 2020 to 2023. a significant increase in fdi is observed in 2023, indicating growing foreign investor interest. table 1 dynamics of foreign direct investment in uzbekistan (trillion uzs) indicators yillar 2020 2021 2022 2023 gdp 605,5 738,4 896,6 1066,6 investments in fixed capital 210,2 239,6 266,2 352,1 foreign direct investment (fdi) 28,7 30,1 37,0 84,3 the data from 2020 to 2023 shows significant trends in uzbekistan’s economic development and the role of foreign direct investment (fdi) in financing fixed capital. gdp growth: uzbekistan’s gdp increased from 605.5 trillion uzs in 2020 to 1,066.6 trillion uzs in 2023, reflecting a steady economic growth trend of nearly 76% over four years. this growth indicates an expanding economy, which creates favorable conditions for investment, both domestic and foreign. investments in fixed capital: investments in fixed capital grew from 210.2 trillion uzs in 2020 to 352.1 trillion uzs in 2023. this upward trend demonstrates increasing attention to infrastructure, industrial modernization, and technological upgrades. the growth in fixed capital investment aligns with gdp growth, suggesting a strong link between capital accumulation and overall economic performance foreign direct investment (fdi): fdi shows remarkable growth, particularly in 2023, rising from 28.7 trillion uzs in 2020 to 84.3 trillion uzs in 2023. while the increase from 2020 to 2022 was moderate, the sharp rise in 2023 indicates a surge of foreign investor confidence, possibly driven by improved investment policies, incentives, and public-private partnership initiatives. if we analyze the number of enterprises with foreign investment, it can be observed that there has been a rising trend in the number of such enterprises during 2020–2024 (figure 1). figure 1. number of enterprises with foreign investment 11781 13289 15801 14053 14200 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 2020 2021 2022 2023 2024 american journal of business management, economics and banking volume 42 november2025 p a g e | 3 www.americanjournal.org as of 2024, a total of 14,200 enterprises with foreign investment are operating in uzbekistan. according to data from the state statistics committee, tashkent city leads in terms of the number of such enterprises, with 8,446 registered. following tashkent city, tashkent region and samarkand region rank second and third, with 1,554 and 562 enterprises, respectively. the distribution of foreign-invested enterprises across other regions is as follows: fergana region – 491; surkhandarya region – 356; bukhara region – 338; andijan region – 312; namangan region – 232; navoi region – 211; sirdarya region – 203; jizzakh region – 179; kashkadarya region – 168; and the republic of karakalpakstan – data available. regarding the volume of foreign direct investment, a total of usd 11 billion was attracted during the 2020–2024 period. the data indicates a clear upward trend in both the number of enterprises and the total volume of foreign investments over these years. figure 2. volume of foreign direct investment, usd billion analyzing the growth rates over the past five years, foreign direct investment reached 104.6% in 2020, slightly declined to 97.8% in 2021, and then increased to 115.2% in 2022. up to the present period, the upward trend has continued, reaching 174.5%. the effective financing of fixed capital investments plays a crucial role in ensuring sustainable economic growth, modernizing production facilities, and introducing innovative technologies. in many countries, the efficiency of investment processes largely determines the competitiveness of the national economy. despite notable improvements in uzbekistan’s investment environment in recent years, several challenges remain, including limited private sector participation, insufficient diversification of funding sources, and underutilization of innovative financial instruments. strengthening the financing mechanisms for fixed capital investments requires a comprehensive and systematic approach. enhancing public-private partnerships, expanding the role of commercial banks and investment funds, and introducing leasing and project-based financing are among the most effective strategies. additionally, international experience from countries such as the united states, china, and singapore demonstrates that combining state support with market-oriented financial instruments can significantly increase investment efficiency. this study aims to analyze existing challenges in financing fixed capital investments in uzbekistan and to propose practical solutions to optimize investment processes. the implementation of these measures 1.7 2.3 2.6 2.2 2.8 0 0.5 1 1.5 2 2.5 3 2020 2021 2022 2023 2024 american journal of business management, economics and banking volume 42 november2025 p a g e | 4 www.americanjournal.org will contribute to increased capital inflows, sustainable industrial development, and the overall resilience of the national economy. foreign investment plays a significant role in the development and modernization of fixed capital in any economy. attracting foreign capital not only provides additional financial resources but also introduces advanced technologies, management practices, and international experience. in uzbekistan, foreign direct investment (fdi) has become a key driver of economic growth, particularly in sectors such as manufacturing, infrastructure, and energy. despite recent improvements in the investment climate, challenges remain in optimizing the financing of fixed capital. these include limited participation of the private sector, insufficient diversification of investment sources, and a lack of innovative financial instruments tailored to foreign investors. strengthening the financing of fixed capital through foreign investment requires a comprehensive strategy that combines state support with market-oriented mechanisms. this strategy may include expanding public-private partnerships, promoting investment funds and leasing mechanisms, offering tax incentives, and creating transparent regulatory frameworks to encourage foreign investors. by learning from international best practices, such as those in the united states, china, and singapore, uzbekistan can enhance its attractiveness as an investment destination, increase the efficiency of capital allocation, and accelerate industrial modernization. integrating foreign investment into the financing of fixed capital is essential for sustainable economic growth, innovation, and the competitiveness of the national economy. conclusion improving the financing of fixed capital investments is essential for promoting sustainable economic growth, modernizing production infrastructure, and enhancing the competitiveness of uzbekistan’s economy. the current investment landscape shows progress, including increased state support and the development of public-private partnerships, yet challenges such as limited private sector participation, underutilized financial instruments, and insufficient diversification of funding sources remain. addressing these challenges requires a comprehensive strategy. strengthening public-private partnerships can mobilize additional resources and reduce investment risks, while expanding the role of commercial banks, investment funds, and leasing mechanisms enhances access to long-term financing. introducing innovative financial instruments, such as venture capital, project-based financing, and green bonds, can further improve investment efficiency and attract both domestic and foreign capital. additionally, adopting lessons from international best practices such as transparent investment policies, favorable regulatory frameworks, and market-based financing mechanisms can significantly improve the effectiveness of capital allocation. implementing these measures systematically will increase investment inflows, accelerate industrial modernization, and support the overall resilience of the economy. in conclusion, a well-structured and diversified approach to financing fixed capital investments is crucial for ensuring long-term economic stability, fostering innovation, and strengthening uzbekistan’s position in the global economic landscape. american journal of business management, economics and banking volume 42 november2025 p a g e | 5 www.americanjournal.org references 1. mustafaqulov sh.i. o‘zbekistonda investitsion muhit jozibadorligini oshirishning ilmiy-uslubiy asoslarini takomillashtirish. i.f.d. diss. avtoref. – toshkent, 2017. – 30 b. 2. hoshimov j. milliy iqtisodiyotga to‘g‘ridan-to‘g‘ri xorijiy investitsiyalarni jalb qilishni rivojlantirish yo‘nalishlari i.f.f.d (phd) diss. avtoref. – toshkent, 2022. – 54 b. 3. бланк и.а. основы инвестиционного менеджмента. – спб.: «ника-центр», 2005. – с. 265. 4. литвинова в.в. инвестиционная привлекательность и инвестиционный климат региона: монография. – м.: финансовый университет, 2013. – 116 с. 5. третьяков, а. г. управление инвестиционной активностью в регионе: автореф. дис. … канд. экон. наук. – м.: рагс, 2006. 18 с 6. белякова м. оценка инвестиционной привлекательности объекта инвестирования. разработка комплексного подхода к оценке инвестиционной привлекательности объекта инвестирования (предприятия). – м.: «lambert academic publishing», 2011. – 196 (44–46). 7. pernia ernesto m.; salas john michael ian sioson (2005) : investment climate and regional development in the philippines, upse discussion paper, no. 2005,01, university of the philippines, school of economics (upse), quezon city. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 1 www.americanjournal.org activity directions of the state debt service guarantee fund in public debt management komolov odiljon sayfidinovich professor, phd in economics, department of international finance, tashkent state university of economics yusupov bekzodjon abdurakhim oglu trainee of the banking and finance academy a b s t r a c t k e y w o r d s the article highlights the purpose, tasks, and activity directions of the state debt service guarantee fund, which plays an important role in the public debt management system of the republic of uzbekistan. in addition, the study analyzes the growth trends of public debt in uzbekistan and examines the revenues and expenditures of the state debt service guarantee fund. public debt, guarantee fund, financial stability, debt policy, external debt, budget deficit, debt management. introduction public debt plays an important role in a country’s macroeconomic system. this is because the formation of public debt, as well as the processes of servicing and repayment, have a significant impact on public finance, monetary circulation, the investment climate, the structure of consumption, and the development of international cooperation. the main reason for the emergence of public debt is the government’s inability to ensure a balance between revenues and expenditures. historical and modern economic practice shows that almost all countries have faced problems related to public debt in their development process, meaning that the existence of public debt is an integral part of the economic system. global experience demonstrates that countries widely use debt policy to finance budget expenditures. therefore, public debt is regarded as a normal economic phenomenon within the financial management of any developed nation. in particular, in many countries, problems associated with public debt intensified due to the covid-19 pandemic that began in 2019, negatively affecting budget deficits, fiscal stability, and economic growth rates. in uzbekistan’s case, by the end of 2024, the volume of public debt reached usd 40.2 billion, or 35 percent of gdp, showing a steady growth trend of 172.1 percent compared to 2020, which underscores the growing need for effective debt management [10]. it should be noted that effective public debt management is an integral part of macroeconomic and fiscal policy. article 35 of the law of the republic of uzbekistan “on public debt” (no. lru-836) states that “the amount of public debt shall not exceed sixty percent of the annual forecast indicator of american journal of business management, economics and banking volume 41 october2025 p a g e | 2 www.americanjournal.org gross domestic product” [1]. therefore, creating strong institutional foundations for sustainable macroeconomic policy is of great importance. among such institutional mechanisms is the establishment and effective management of the state debt service guarantee fund as a key instrument to ensure public debt sustainability. this fund not only strengthens investors’ confidence in government securities and minimizes uncertainty in financial markets but also serves as an essential financial tool to systematically finance debt servicing, ensure continuity of payments, and guarantee the timely fulfillment of debt obligations. literature review in j. buchanan’s research, the economic essence of public debt and its diverse interpretations are critically analyzed. according to the scholar, public debt is often misinterpreted as a purely negative phenomenon that harms a country’s economic development, whereas, in reality, it can serve as an important financial instrument in the process of economic growth. buchanan emphasizes that proper debt management and its alignment with effective fiscal policy are essential prerequisites for the stability of public finance [3]. in the study by ghosh, kim, mendoza, ostry, and qureshi, the concepts of fiscal fatigue, fiscal space, and debt sustainability in developed countries are examined. the authors argue that at high levels of public debt, governments’ ability to implement additional fiscal measures weakens, thereby threatening long-term fiscal sustainability [4]. a. pienkowski, in his research on the structure and composition of public debt, demonstrates that there is no universal threshold for acceptable debt levels applicable to all countries. instead, the limits differ significantly among developed, developing, and low-income nations. one of his key recommendations is that low-income countries should prioritize borrowing in national currency, whereas developed countries can issue gdp-linked government securities as an effective strategy to increase their debt capacity [5]. in p. leão’s article, it is argued that an increase in the volume of public debt leads to higher tax burdens, a greater risk of sovereign default, and intensification of inflationary pressures. however, the author also stresses the necessity of designing effective fiscal policy mechanisms to mitigate these adverse effects [6]. e. beqiraj and s. fedeli’s study analyzes the attitudes of governments in 21 oecd member countries toward the rising debt-to-gdp ratio. the research systematically examines, on a scientific basis, the set of fiscal and institutional measures required under growing debt burdens, as well as the correlation between public debt and budget deficits [7]. ahmed and rogers argue that when analyzing the relationship between public debt and budget deficits, it is crucial to consider long-term fiscal sustainability. their article explains the interconnection between budget and trade deficits through the present value constraints approach [8]. baldi and staehr, in their research on the european debt crisis, analyze the fiscal policies of european countries during 2000–2014. according to their findings, the rise in public debt and budget deficits prompted governments to strengthen their fiscal frameworks. their study shows that while increasing debt burdens enhanced fiscal policy flexibility in some european nations, it also led to a slowdown in economic growth in others. therefore, the authors conclude that improving fiscal policy mechanisms under high debt-to-gdp ratios plays a vital role in ensuring macroeconomic stability [9]. american journal of business management, economics and banking volume 41 october2025 p a g e | 3 www.americanjournal.org research methodology the article analyzes the public debt management system of the republic of uzbekistan and the activities of the state debt service guarantee fund. during the research process, induction, deduction, and comparative analysis methods were applied. the study examined data on the volume and structure of public debt, the dynamics of external and internal debt, as well as the revenues and expenditures of the state debt service guarantee fund, based on official information obtained from the official website of the ministry of economy and finance of the republic of uzbekistan. analysis and results public debt represents the total amount of a country’s financial obligations to individuals, legal entities, foreign states, international organizations, and other subjects of international law, which may also be formed on the basis of state guarantees. public debt is fully secured by state property, and the relevant government bodies are responsible for taking the necessary measures to service and repay it. in a broad sense, public debt management is an integral component of a country’s economic policy, representing a systematic organization of the state’s borrowing activities. this process encompasses the following key directions: formulating public debt policy and aligning it with macroeconomic stability strategies; determining debt limits and coordinating them with indicators of budget deficit and fiscal sustainability; assessing the impact of public debt on economic growth, inflation, investment activity, and other macroeconomic indicators; evaluating opportunities for financing nationwide socio-economic programs and developing mechanisms for the efficient use of borrowed resources. in the republic of uzbekistan, systematic efforts are being made to ensure effective management and control of public debt. in particular, on september 11, 2023, the president adopted decree no. 158 “on the uzbekistan – 2030 strategy.” this strategy pays special attention to public debt management and fiscal stability. it aims to increase gdp volume, raise per capita income, reduce inflation, and coordinate monetary, fiscal, and foreign trade policies to maintain annual inflation at the level of 5–6 percent by 2030. these measures are intended to ensure effective debt management and strengthen fiscal sustainability. the relationship between the level of public debt and the economic situation is not always direct. a high level of debt does not automatically lead to a decline in economic stability; what matters most is the effective management of borrowed funds and their targeted use for economic growth. from this perspective, public debt should be regarded as an instrument of economic development strategy. the following table 1 presents indicators of public debt development in uzbekistan. table 1 information on uzbekistan’s external debt [10] № indicators 2021 2022 2023 2024 million usd share (%) million usd share (%) million usd share (%) million usd share (%) public debt 26 323 100% 29 231 100% 34 927 100% 40 215 100% as % of gdp 34,0% 32,4% 34,4% 35,0% i external debt 23 582 90% 25 914 89% 29 639 85% 33 726 84% as % of gdp 30,5% 28,8% 29,2 29,3% 1.1. fixed interest rate 13 306 51% 13 815 47% 15 801 45% 17 943 45% american journal of business management, economics and banking volume 41 october2025 p a g e | 4 www.americanjournal.org floating interest rate 10 124 38% 11 955 41% 13 636 39% 15 645 39% interest-free 153 1% 144 0% 201 1% 138 0% 1.2. denominated in national currency 415 2% 401 1% 547 2% 561 1% denominated in foreign currency 23 167 88% 25 513 87% 29 092 83% 33 165 82% 1.3. short-term 0 0% 0 0% 100 0% 0 0% long-term, repayable within one year 17 0% 230 1% 786 2% 125 0% long-term, repayable in more than one year 23 565 90% 25 684 88% 28 752 82% 33 601 84% ii domestic debt 2 741 10% 3 317 11% 5 288 15% 6 489 16% as % of gdp 3,5% 3,7% 5,2% 5,6% 2.1. fixed interest rate 1 469 6% 1 703 6% 3 674 11% 5 122 13% floating interest rate 295 1% 224 1% 259 1% 122 0% interest-free 976 4% 1 390 5% 1 355 4% 1 245 3% 2.2. denominated in national currency 1 158 4% 1 831 6% 1 860 5% 3 072 8% denominated in foreign currency 1 583 6% 1 487 5% 3 428 10% 3 417 8% 2.3. short-term 286 1% 703 2% 170 0% 1 164 3% long-term, repayable within one year 106 0% 188 1% 1 351 4% 1 481 3% long-term, repayable in more than one year 2 349 9% 2 426 8% 3 767 11% 3 844 10% uzbekistan’s total public debt increased from usd 26.3 billion in 2021 to usd 40.2 billion in 2024, reflecting a 53% growth over four years, which indicates a rapid rise in debt levels. however, the debtto-gdp ratio remained relatively stable, increasing only slightly from 34% in 2021 to 35% in 2024, suggesting that the debt growth has not posed a significant threat to economic stability. external debt accounts for the major portion of total public debt. in 2021, it stood at usd 23.6 billion (90%), and by 2024 it reached usd 33.7 billion (84%), showing that most borrowing comes from international financial markets. the external debt-to-gdp ratio decreased from 30.5% to 29.3%, which reflects the sustainability of external borrowing in relation to the economy. debt with fixed interest rates declined from 51% in 2021 to 45% in 2024, contributing to improved financial stability. conversely, floating-rate debt increased slightly from 38% to 39%, indicating higher sensitivity to global financial market fluctuations. interest-free loans made up a minimal portion (0– 1%). the share of external debt denominated in national currency remained low (1–2%), while foreign currency-denominated debt accounted for 82–88%. this demonstrates the debt’s vulnerability to exchange rate fluctuations—meaning depreciation of the national currency could increase the debt burden and financial risks. short-term external debt was almost nonexistent, with the majority being long-term debt (82–90%) repayable in more than one year. this long-term structure supports debt stability and enables better financial planning. american journal of business management, economics and banking volume 41 october2025 p a g e | 5 www.americanjournal.org domestic debt rose from usd 2.74 billion in 2021 to usd 6.49 billion in 2024. its ratio to gdp increased from 3.5% to 5.6%, indicating a growing domestic financial market and an improvement in the government’s ability to attract internal resources. domestic debt with fixed interest rates increased significantly from usd 1.5 billion to usd 5.1 billion, while debt with floating rates decreased, showing a preference for more stable borrowing terms and reduced interest rate risk. interest-free domestic debt accounted for 3–5% of the total. debt denominated in national currency grew from 4% to 8%, while debt in foreign currency increased from 6% to 8%, indicating that domestic borrowing also carries some currency-related risks. short-term domestic debt accounted for 1–3%, with the majority being long-term obligations (10– 11%), facilitating more manageable debt servicing and enhancing financial stability. overall, uzbekistan’s debt structure is characterized by a predominance of long-term and fixed-rate debt, which contributes to financial sustainability. while the high share of external debt exposes the country to exchange rate risks, the growth of domestic debt reflects expanding internal financial capacity. with effective management, public debt can serve as a tool for economic development and financing of investment projects. alongside the growth of public debt, timely repayment, interest servicing, and fulfillment of obligations remain critical issues. in this context, the state debt service guarantee fund plays an important role in strengthening the country’s financial stability and economic security. the existence of a guaranteed source for debt servicing increases the confidence of investors, creditors, and international financial institutions. consequently, this promotes greater inflows of foreign investment, access to international financial resources under more favorable terms, and the enhancement of uzbekistan’s position in global financial markets. the state debt service guarantee fund is a key financial mechanism in managing uzbekistan’s internal and external debt. it ensures the stable execution of debt obligations, strengthens the country’s reputation in international markets, and significantly reduces financial risks. in uzbekistan, the cabinet of ministers resolution “on the organization of activities of the state debt service guarantee fund under the treasury committee of the ministry of economy and finance of the republic of uzbekistan” was adopted on september 21, 2020. the fund is not a separate legal entity, but operates within the structure of the ministry of economy and finance. the main functions of the fund include: debt servicing support – if the borrower organization or refinancing bank fails to make payments (principal, interest, penalties) on time and in full under projects financed through public debt, the fund’s resources are used to cover these payments; budget protection – if the fund’s resources are insufficient, the deficit is covered by the state budget; debt recovery – payments made from the fund’s resources are subsequently recovered from the debtor organization or bank; fund management and investment – the fund’s resources may be managed through investments, deposits, or the purchase of liquid securities; accounting and reporting – regular reporting is maintained on the fund’s activities, income and expenses, debt payments made, and recovered funds. the fund becomes active in the following cases: when a project or program is financed through public debt; when the debtor organization or bank fails to make timely payments; american journal of business management, economics and banking volume 41 october2025 p a g e | 6 www.americanjournal.org if the fund has sufficient resources, they are used first; if not, additional financing may be provided from the state budget as a subsidy. table 2 dynamics of income, transfers and expenses of the guarantee fund for servicing public debt (2020-2024, billion soums) [10] period indicators revenues transfers expenses 2020 59 444,6 2021 495 565,6 227 855,7 40 549,4 2022 368 408,5 2023 369 015,0 138 253,1 2024 974 143,0 116 558,5 according to the data, in 2020, the revenues of the state debt service guarantee fund covered only about one-fourth of the total debt (0.25), indicating a high level of debt pressure on public finances. in 2021, however, the fund’s revenues increased sharply, providing the capacity to cover the debt by 1.8 times. in the following years (2022–2023), revenues slightly declined, and as total debt continued to grow, the ratio worsened — in fact, in 2023, the fund’s revenues were insufficient to cover the debt (0.88). nevertheless, due to a significant increase in revenues in 2024, debt pressure decreased substantially, and the fund’s revenues were almost twice the total debt. thus, although there were notable fluctuations in public finances during 2020–2024, fiscal stability improved considerably in the final year. overall, despite short-term volatility, by 2024, uzbekistan’s public finances had become relatively stable; however, the continuous upward trend in public debt suggests that the issue of debt management has not yet been fully resolved. conclusion and suggestions as the volume of public debt continues to increase, the issue of timely repayment, interest payments, and fulfillment of all financial obligations becomes increasingly critical. the uninterrupted and punctual servicing of debt obligations is one of the key indicators determining a country’s credibility in international financial markets. any delay or failure to meet these obligations negatively affects the country’s credit rating and significantly limits its ability to attract funds from international capital markets in the future. therefore, the establishment of a special guarantee fund for debt servicing within the public debt management system is of great importance. such a fund allows for the accumulation and reservation of resources in advance to meet upcoming debt payments. this mechanism helps prevent interruptions in debt servicing that may arise due to fluctuations in annual budget revenues or unexpected economic shocks. during the 2020–2024 period, the dynamics of the fund’s revenues and debt obligations were volatile. while in 2020, the revenues were insufficient to cover the debt, in 2021, the situation improved significantly due to a sharp increase in revenues. however, in 2022–2023, the relative position weakened again as a result of higher debt and lower revenues, and in 2023, the revenues even fell short of the debt level. by 2024, owing to a substantial increase in revenues, the fund’s capacity to cover debt obligations strengthened considerably. american journal of business management, economics and banking volume 41 october2025 p a g e | 7 www.americanjournal.org the state debt service guarantee fund serves as an essential financial mechanism for managing both external and domestic public debt. through this fund, the stable fulfillment of debt obligations is ensured, the country’s reputation in international financial markets is reinforced, and economic risks are significantly reduced. references: 1. law of the republic of uzbekistan “on state debt” no. zrq-836. 2. resolution of the cabinet of ministers of the republic of uzbekistan “on the organization of the activities of the guarantee fund for servicing the state debt of the treasury service committee under the ministry of economy and finance of the republic of uzbekistan” no. 573. september 21, 2020. 3. buchanan, j.m., 1966. the icons of public debt. j. finance 21 (3), 544-546. 4. ghosh, a.r., kim, j.i., mendoza, e.g., ostry, j.d., qureshi, m.s., 2013a. fiscal fatigue, fiscal space and debt sustainability in advanced economies. 5. pienkowski a. debt limits and the structure of public debt // journal of globalization and development, vol. 8, no. 2, 2018, pp. 20170018. https://doi.org/10.1515/jgd-2017-0018. 6. pedro l. is a very high public debt a problem? // levy economics institute of bard college, annandale-on-hudson, ny. no. 843, 2015. 7. elton b., silvia f. public debt sustainability: an empirical study on oecd countries // journal of macroeconomics, vol. 58 (2018) 238-248. 8. ahmed, s., rogers, j.h., 1995. government budget deficits and trade deficits are present value constraints satisfied in long-term data? j. monet. econ. 36 (2), 351-374. 9. baldi, g., staehr, k., 2016. the european debt crisis and fiscal reactions in europe 2000-2014. int. econ. econ. policy 13 (2), 297-317. 10. www.imv.uz – official website of the ministry of economy and finance. https://doi.org/10.1515/jgd-2017-0018 american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 56 www.americanjournal.org methods for assessing the effectiveness of publicprivate partnership projects matkarimov akbar muso ugli mamun university, uzbekistan e-mail: elyurtumidi@mail.ru a b s t r a c t k e y w o r d s this article examines the main methods for assessing the effectiveness of public-private partnership (ppp) projects, which play a crucial role in developing infrastructure and providing social services. the study identifies key financial, economic, social, and environmental evaluation tools, including npv, irr, payback period, and benefit-cost ratio (bcr). the author also highlights the importance of risk analysis and scenario modeling in ensuring the sustainability and feasibility of ppp initiatives. using international and regional examples (kazakhstan, great britain, uzbekistan), the article demonstrates the practical significance of comprehensive effectiveness assessment for achieving successful and sustainable ppp outcomes. public-private partnership, effectiveness assessment, npv, irr, payback period, benefit-cost ratio, risk analysis, scenario modeling, infrastructure development, investment efficiency. introduction public-private partnership (ppp) projects are one of the most effective mechanisms for modernizing infrastructure, improving public services, and attracting private investments to socially significant sectors. their effectiveness largely depends on comprehensive and scientifically grounded evaluation before, during, and after project implementation. assessing the effectiveness of ppp projects allows the public and private sectors to determine the rationality of investments, forecast risks, and measure the social and environmental impacts of initiatives. therefore, developing and applying reliable evaluation methods is crucial to ensure the long-term success and sustainability of ppp mechanisms. evaluating the effectiveness of public-private partnership projects is crucial for ensuring success before their implementation, as well as during the project and subsequent stages. through such an assessment, the economic, social, financial, and environmental impact of the project is determined, and accurate and substantiated information is provided for the decisionmaking parties. first of all, through the assessment of effectiveness, the targeted and rational use of budget funds allocated by the state is achieved. for the private sector, such analyses provide reliable information about the stability of the investment climate and the profitability american journal of business management, economics and banking volume 41 october2025 p a g e | 57 www.americanjournal.org of the project. this, in turn, will increase investor interest and stimulate the attraction of private capital. main part evaluating effectiveness is also socially important. through this process, such factors as the positive or negative impact of the project on the population, the creation of new jobs, and the improvement of the quality of public services are analyzed. at the same time, the impact on the environment is also assessed, which is necessary to ensure sustainable development. another important aspect is that through the analysis of effectiveness, the risks that may arise in the project are identified in advance and measures to reduce them are determined. this makes the project more reliable and effective, ensuring its long-term sustainability. therefore, evaluating the effectiveness of public-private partnership projects plays an important role in making decisions that are not only of financial or economic interest, but also of broad social, environmental, and strategic importance. correct assessment of the effectiveness of public-private partnership projects contributes to the adoption of investment decisions on a rational and strategic basis. it is especially necessary to conduct a comprehensive analysis before starting projects at socially significant infrastructure facilities schools, hospitals, roads, and energy systems. for example, the public and private sectors collaborated on the project to modernize the almaty-kapshagay highway in kazakhstan. before the implementation of the project, it was assessed based on such indicators as traffic flow, costs, environmental impact, and the level of convenience for the population. analysis of the effectiveness showed that the reconstruction of this road made it possible to increase traffic flow by 40%, reduce time savings by 25%, and reduce carbon emissions by 18%. such results clearly demonstrate how important the effectiveness analysis is for the project. the project of hospitals built on the basis of the british private finance initiative (pfi) is also noteworthy. in such projects, through performance analysis, it became possible to compare construction time, service quality, and costs. for example, 80% of more than 30 hospitals built by the private sector in the nhs (national health service) system projects were completed within the planned timeframe and without exceeding the established budget. through these analyses, the state acquired high-quality infrastructure, while the risks associated with the project were transferred to the private sector. the "construction of a children's hospital for 540 beds in tashkent" project in uzbekistan was also properly planned through such assessments. in the analysis of the project's social effectiveness, new jobs, coverage of medical services, and the impact on the population's potential were taken into account. as a result, after the launch of this hospital, children's health indicators in tashkent improved significantly, and access to medical services increased by 27%. as can be seen from the specific examples above, performance evaluation is necessary for the effective implementation of public-private partnership projects and risk management in advance. this will ensure not only financial benefits, but also social impact, improved service quality, and the creation of a sustainable infrastructure. we consider it expedient to use a number of methods in assessing the effectiveness of financing public-private partnership projects. american journal of business management, economics and banking volume 41 october2025 p a g e | 58 www.americanjournal.org these assessment methods can be grouped as a whole as follows: table 1 methods for assessing the financial efficiency of financing publicprivate partnership projects № method name brief description 1. npv net present value calculates the difference between income and expenses from investments at present value. positive npv the project is profitable. 2. irr internal rate of return determines the level of internal profitability of the project. what is the percentage of the irr, npv = 0. 3. pp payback period the investment in the project shows how long it will pay off. 4. bcr benefit-cost ratio profit-costs ratio. if bcr > 1, the project is considered acceptable. 1) npv (net present value), that is, net discounted income calculates the discounted value of all profits and costs of the project and helps to evaluate the result in a negative or positive form. if the npv is positive, the project is financially profitable. this method allows you to take into account future investment returns, inflation, and other economic factors: in the formula: ct cash flow received in year t (cash income); c0 initial investment of the project; r discount rate (percentage of capital depreciation); t time (number of years), n project duration (years). table 2 interpretation of the npv indicator of financial efficiency for financing public-private partnership projects npv result interpretation npv > 0 the project is profitable, it is advisable to invest. npv = 0 the project is neutral, ensures return on investment, but there is no profit. npv < 0 the project is unprofitable, investment is not recommended. this method is one of the most reliable and widespread methods for determining the financial effectiveness of projects. with its help, the investor and the state can draw a reasoned conclusion that the project actually creates value. 2) irr (internal rate of return) is the discount rate at which the npv of future income from an investment project is equal to zero. that is, the irr is the interest rate at which project revenues and expenditures are equalized. the irr helps to assess how profitable it is to invest in a project. this indicator is used by private investors or government agencies when making american journal of business management, economics and banking volume 41 october2025 p a g e | 59 www.americanjournal.org investment decisions. the irr is the value of r for which npv is equal to 0 can be found using the following formula: in formula: ct cash flow in year t (cash receipts); c0 initial investment; irr internal rate of return; t time (years). when assessing irr, the following rules are followed, i.e., when irr > discount rate (capital value), the project is profitable and acceptable. when irr = discount rate, the project is neutral, profits and costs are the same, and when irr < discount rate, the project is not economically feasible. for example, $100,000 was invested in a project implemented through a publicprivate partnership mechanism. revenue in the next 3 years: $40,000, $50,000, and $60,000. if the irr ≈ 18.7%, which makes npv 0, this project is considered profitable if the expected discount rate is 12%. as advantages and disadvantages of the irr method, the following should be considered: table 3 advantages and disadvantages of the irr method benefits limitations a convenient concept for an investor in the form of interest you may not always get a clear solution comparison of different projects multiple irrs may appear when cash flow is large intuitive and graphically easy to understand the selection should be considered in conjunction with npv the irr is mainly defined as the interest rate that equates the present value of future cash flows to investment capital. through this indicator, investors and government organizations can understand the effectiveness of investments. if the irr exceeds the minimum requirement for investment capital (e.g., bank interest rate or expected rate of return), the project is considered financially sound. the r&d is especially important in coordinating the interests of the public and private sectors in public-private partnership projects. because a clear indicator of the project's profitability serves as a reliable source for attracting a private investor and assessing investment risk. in addition, the irr indicator allows you to compare the project with other options and choose which project is economically feasible. also, since the irr shows the profitability of the project as a percentage, it allows easy comparison of projects in different areas. unlike other financial methods, through irr, investors can directly see the difference between the current interest rate and project profitability. 3) payback period (pp) or project payback period is a financial indicator that shows how long it takes for funds spent on an investment project to fully return. through this method, the investor or government organization assesses how many years it will take for the investment in the project to pay off. the payback period means the liquidity of the project, that is, the ability of the investment to quickly turn into money. therefore, this indicator is very important for american journal of business management, economics and banking volume 41 october2025 p a g e | 60 www.americanjournal.org investors, especially in conditions of high risk or rapid market volatility. the pp calculation formula, if the cash flows are the same each year, is carried out as follows: formula: c0 initial investment (fund contributed to the project); ct<3 annual cash flow (direct revenue). if cash flows differ annually a cumulative calculation is applied through the sum of annual cash flows. table 4 advantages and disadvantages of the pp method benefits disadvantages easy and understandable to calculate only calculates the return on investment, excluding subsequent profits evaluates project liquidity does not take into account risk and time factors (discounting is not allowed) quick risk assessment tool only considers short-term benefits this assessment method is an operational method for assessing the return on investment of public-private partnership projects and is important in determining the return period of funds spent on the project. this indicator is of great importance for the public and private sectors in terms of security and liquidity. however, for a full assessment of effectiveness, it is recommended to use in conjunction with in-depth analysis methods such as irr and npv. this method is aimed at determining when the project can recoup its costs. if the return time is powerful, the project is considered financially effective. this method also demonstrates the seriousness and reliability of the project for the private sector. however, it consists only of competing costs and revenues and does not show a general social and economic impact. 4) bcr (benefit-cost ratio) profit-cost ratio. an indicator used to assess the economic efficiency of an investment project, calculated as the ratio of the expected total profit from the project to total costs. this indicator determines how rational and effective the project is. its calculation formula is as follows: in formula: bt profit received in year t; ct cost in year t; r discount rate; t time (number of years); n project duration. as an important aspect of bcr, it should be noted that bcr plays an important role in assessing social and economic benefits in public-private partnership (ppp) projects. this american journal of business management, economics and banking volume 41 october2025 p a g e | 61 www.americanjournal.org method is widely used in comparing the effectiveness of projects in the fields of infrastructure, education, healthcare, transport, and energy. bcr allows investors and government organizations to determine which projects are being effectively allocated resources to. table 5 interpretation of the results of the bcr method and its advantages and disadvantages bcr value interpretation bcr > 1 the project's profit exceeds the cost, approved bcr = 1 profit and cost equal, neutral decision bcr < 1 cost is higher than profit, unacceptable benefits shortcomings between profit and cost gives a precise ratio it can be difficult to accurately assess all the benefits and costs. convenient for comparing projects profit can be assessed subjectively or unsatisfactorily social and economic analysis suitable for in some cases, it may not provide a complete economic picture the bcr assessment method is one of the most important and reliable methods for assessing the effectiveness of investments in public-private partnership projects. it shows how much profit each sum invested in the project can bring. however, when used in conjunction with other methods such as npv, irr, payback period, it allows for more substantiated conclusions. methods of economic valuation in assessing the effectiveness of public-private partnership projects, it is important to identify economic benefits and losses. economic evaluation methods show social and economic results through the project, helping to understand the significance of the project for society. cost-benefit analysis: this method considers the costs directed to the project (investments, operating costs, etc.) and the potential social, economic, and environmental benefits it can bring (new jobs, infrastructure improvement, reduction of environmental impact). this method provides wide opportunities for calculating project profits and losses, as well as ensures a comparison of different scenarios that correspond to the needs of the public and private sectors. 2) analysis of benefits and losses for society (social impact assessment): a method aimed at assessing the social impact of the project, which helps to determine the benefits and losses indicated for various rural, urban, and social categories of society. factors such as the likelihood of social benefits, job growth, improvement in information and educational opportunities, and an increase in the level of medical services are taken into account. 3) indicators and ratios: some indicators should be used to assess the social and economic effectiveness of public-private partnership projects. these indicators are related to the project's social impact, innovative added value, job creation, social losses, and benefits. american journal of business management, economics and banking volume 41 october2025 p a g e | 62 www.americanjournal.org assessment of social and environmental effectiveness. along with the financial effectiveness of public-private partnership projects, an assessment of their social and environmental impact is also important. determining the impact of the project on the environment and society is a factor influencing the long-term sustainability of the project. 1) social impact assessment (sia) . the social impact assessment is aimed at determining the impact of the project on society. the purpose of this analysis is to assess the positive impact of the project, such as job creation, opportunities for knowledge and skills development, improvement of social infrastructure, and raising the standard of living of the population. social impact can be assessed based on several indicators or metrics. these indicators can show changes in various social networks, such as jobs, education levels, and social and economic stability. for example, the following formula can be used to assess the social impact of one job: in the formula: c social impact; i number of jobs created; t total population or number of active job seekers. based on this formula, it is possible to assess the social impact of job creation. 2) environmental impact assessment (eia). environmental impact assessment involves an analysis of the project's impact on natural resources, biodiversity, and the environment. this method allows for waste management, assessment of water and air quality, energy consumption, and environmental impact. if it is necessary to jointly assess the environmental and social impact, this is also carried out through integrated models. for example, assessing social and environmental parameters with weights corresponding to each indicator: in formula: sia general social impact; w1, w2 weighting factors for social and environmental factors; s social indicators (for example, jobs, education); e environmental indicators (e.g., co2 emissions, resource consumption). 3) sustainability indicators . to ensure sustainability, special indicators can be used to measure the environmental and social impacts of the project. these indicators include factors such as environmental efficiency, energy saving, reduction of co2 emissions, and social improvement of society. 4) indicators of negative and positive impacts. if there is data on the negative and positive impacts of the project, the following formula can be used to calculate their overall index: american journal of business management, economics and banking volume 41 october2025 p a g e | 63 www.americanjournal.org formula positive impacts positive impacts, negative impacts negative impacts, total impacts means total impacts. risk analysis and scenario modeling in the evaluation of public-private partnership projects are tools for predicting project-related uncertainties, potential risks and their consequences, as well as forecasting how the project will work under various economic, financial, and legal conditions. this process plays an important role in assessing the effectiveness of the project. risk analysis in public-private partnership projects is important, as these projects may face financial, social, and environmental risks. a correct assessment of project risks helps to develop a strategy for their mitigation and management. risk analysis. determination of financial, environmental, and social risks of the project. it is necessary to consider ways to minimize the impact of these risks and manage them correctly. the main objectives are to identify project uncertainties and risks, assess risk sources (economic, political, legal, environmental, and technical), analyze potential impacts and potential outcomes, and properly distribute risks (between the public and private sectors). the methods used in risk analysis include: sensitivity analysis. evaluates how npv and irr are affected when key indicators change. boundaries and scenarios (sensitivity analysis) consider how the social, economic, and financial effectiveness of the project changes under different conditions.; risk matrix (risk matrix) is the classification of risk probability and impact into four quarters; monte carlo simulation repeated modeling of results based on probable scenarios; swot analysis is used to identify strengths and weaknesses, opportunities and risks. scenario modeling is the process of modeling the operation of a project based on various possible economic, political, and financial conditions, the main goals of which are the assessment of project results in various scenarios (optimistic, realistic, pessimistic), preparation for various conditions for decision-makers, and checking the sustainability of the project in a changing economic environment. risk analysis and scenario modeling play an important role in the effective implementation of public-private partnership projects. through them, it will be possible to identify project risks in advance and assess how they will work under various possible conditions. this contributes to the rational adoption of financing decisions and ensures the sustainability of the project. table 6 types and models of scenario modeling in assessing the financial effectiveness of public-private partnership projects script types optimistic scenario high economic growth, low risks realistic script expected standard conditions pessimistic scenario inflation, devaluation of the sum, changes in laws applicable models: financial model npv, irr, roi are calculated based on different scenarios. cash flow model the cash flow is structured according to the income and expenditure scenarios. stochastic model probability-based models (monte carlo, decision tree) american journal of business management, economics and banking volume 41 october2025 p a g e | 64 www.americanjournal.org conclusion evaluating the effectiveness of public-private partnership projects requires the use of various methods. assessment of financial, economic, social, environmental, and risk factors helps to determine the specifics of the project. correct assessment of the effectiveness of projects helps to understand their social and economic significance. this, in turn, contributes to the minimization of the project's financial condition, social stability, and environmental impact. such assessments help in making project-related decisions and contribute to future social and economic development. a comprehensive approach to assessing ppp project effectiveness—combining financial, economic, social, environmental, and risk-based methods—enables more balanced and evidence-based investment decisions. proper evaluation not only ensures efficient use of public funds and increased investor confidence but also enhances social welfare and environmental sustainability. the implementation of these methods is a key factor in forming a stable and attractive investment climate for regional development. references 1. yescombe, e. r. (2017). public-private partnerships: principles of policy and finance. elsevier. 2. grimsey, d., & lewis, m. k. (2004). public private partnerships: the worldwide revolution in infrastructure provision and project finance. edward elgar. 3. oecd (2021). public-private partnerships: governance frameworks and best practices. oecd publishing. 4. world bank (2020). ppp knowledge lab: evaluation of ppp performance. 5. asian development bank (2019). assessing the effectiveness of ppps in asia and the pacific. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 116 www.americanjournal.org reforming tax policy for sustainable economic development in uzbekistan gulshahnoz gulyamova professor of the department of international finance and investments, university of world economy and diplomacy tashkent, uzbekistan a b s t r a c t k e y w o r d s tax policy plays a vital role in shaping the economic development, fiscal stability, and investment climate of any nation. in the context of uzbekistan, ongoing economic reforms have highlighted the need for a more efficient, equitable, and growth-oriented tax system. this article examines the current structure of uzbekistan's tax policy, identifies its limitations, and explores potential strategies for reform in alignment with international best practices. particular attention is given to the balance between direct and indirect taxation, the broadening of the tax base, the reduction of the informal economy, and the improvement of tax administration and compliance. through comparative analysis and review of recent government initiatives, this study aims to offer practical recommendations for designing a tax system that supports macroeconomic stability, enhances public revenue mobilization, and promotes sustainable and inclusive growth in uzbekistan. uzbekistan, tax policy reform, fiscal policy, economic development, tax administration, informal economy, tax compliance, public finance, direct and indirect taxes, fiscal sustainability. introduction tax policy is a cornerstone of a nation’s fiscal architecture, playing a critical role in shaping economic behavior, influencing income distribution, and providing essential revenue for public goods and services. for developing and transitioning economies like uzbekistan, tax policy reform is not merely a technical task but a strategic imperative to support sustainable economic development, reduce poverty, and foster social equity. in the past decade, uzbekistan has embarked on a comprehensive reform agenda aimed at modernizing its economy, improving governance, and enhancing the investment climate. central to these efforts is the transformation of the country’s tax policy and administration systems. following its independence in 1991, uzbekistan inherited a centralized, soviet-style tax framework characterized by complex regulations, high marginal rates, and a narrow tax base. this legacy contributed to a large informal economy, weak compliance, and low tax morale among citizens and businesses. recognizing these structural challenges, the government has introduced a series of tax reforms, particularly after 2017 under the leadership of president shavkat mirziyoyev. key measures american journal of business management, economics and banking volume 35 april 2025 p a g e | 117 www.americanjournal.org have included simplifying the tax code, reducing tax rates, transitioning to a flat income tax system, digitizing tax administration, and broadening the tax base. these reforms aim to create a more transparent, fair, and efficient tax system that stimulates economic growth while ensuring adequate public revenue. despite these positive developments, significant challenges remain. the informal sector still accounts for a large portion of economic activity, eroding the tax base and undermining fiscal sustainability. moreover, tax collection efficiency, especially at the local level, remains low, and tax incentives have often been granted without clear economic rationale, leading to distortions and revenue losses. addressing these issues requires a deeper analysis of the tax structure, tax compliance behavior, and institutional capacity of tax authorities. this article aims to critically analyze uzbekistan’s tax policy in the context of its broader development goals. it explores the theoretical foundations of effective tax policy, reviews international best practices, and evaluates the design and implementation of recent reforms. through a synthesis of empirical data and scholarly perspectives, the paper offers policy recommendations for strengthening uzbekistan’s tax system in a way that balances revenue generation with equity, efficiency, and economic competitiveness. literature review the literature on tax policy reform in developing and transition economies provides a comprehensive foundation for understanding the complexities involved in building effective and equitable fiscal systems. scholars have extensively examined the role of taxation in promoting sustainable development, improving public sector performance, and fostering inclusive economic growth. according to musgrave and musgrave (1989), an ideal tax system should fulfill three main objectives: equity (fair distribution of tax burdens), efficiency (minimal distortion of economic behavior), and simplicity (ease of understanding and administration). in the context of developing countries, bird and zolt (2005) argue that tax policy must also be pragmatic and tailored to local administrative and institutional capacities. tanzi and zee (2000) emphasize the need for tax policies that are responsive to globalization, capital mobility, and changing patterns of labor and consumption. transition economies, such as those in the post-soviet space, have faced unique challenges in overhauling their tax systems. according to martinez-vazquez and mcnab (2000), early tax reforms in these countries often focused on introducing market-friendly tax instruments, broadening the tax base, and eliminating excessive exemptions. however, weak institutions and the persistence of informal economic activity often hindered reform effectiveness. in a comparative study of tax reforms in eastern europe and central asia, keen and simone (2004) note that simplifying tax structures and enhancing compliance mechanisms are essential for successful reform. in the case of uzbekistan, raiser and rutkowski (2001) highlight the distortions created by a complex system of turnover and enterprise taxes in the early transition period. since then, progress has been made, but recent studies by the world bank (2019) and international monetary fund (2021) continue to identify weaknesses in tax administration, compliance enforcement, and the rationalization of tax incentives. a critical theme in tax reform literature is the interaction between the informal economy and tax compliance. schneider and enste (2000) estimate that in many developing countries, the informal sector accounts for 30–60% of gdp. in uzbekistan, estimates suggest that informal employment may american journal of business management, economics and banking volume 35 april 2025 p a g e | 118 www.americanjournal.org account for nearly half of total employment (adb, 2022). torgler (2007) argues that tax morale — the intrinsic motivation to pay taxes — is a significant determinant of compliance, influenced by trust in government, perceived fairness of the tax system, and administrative transparency. the role of digitalization in enhancing compliance and reducing informality has also gained attention. according to oecd (2020), the use of e-filing systems, real-time invoicing, and digital taxpayer services can significantly improve tax collection efficiency and reduce evasion. uzbekistan’s recent move toward e-taxation systems and the introduction of the "taxpayer's personal account" platform is a step in this direction, though its implementation remains uneven across regions and sectors. numerous global case studies offer insights into successful tax reform strategies. for example, south korea and georgia are often cited for their effective transition from inefficient, corruption-prone tax systems to modern, transparent models (usaid, 2015). key factors behind their success include strong political commitment, administrative capacity-building, clear communication with taxpayers, and the strategic use of digital tools. for uzbekistan, adopting such best practices involves not only technical adjustments but also broader governance reforms to build trust and improve service delivery. as fjeldstad and moore (2008) point out, taxation is not just a revenue tool but also a social contract between the state and its citizens, with implications for accountability, legitimacy, and democratic governance. methodology this study adopts a qualitative and descriptive research approach supported by comparative policy analysis to evaluate the current state and reform trajectory of uzbekistan's tax system. the methodology integrates both primary and secondary data sources: − document analysis: key legal documents, government strategies, presidential decrees, and tax codes issued between 2017 and 2024 were reviewed to trace policy shifts and reform priorities. notable among these are uzbekistan’s tax concept for 2019–2021, the presidential decree no. pf-5866 (2019), and related tax legislation amendments. − secondary data collection: data was sourced from reputable international organizations, including the world bank, international monetary fund (imf), oecd, and asian development bank (adb). these sources provided indicators on tax-to-gdp ratios, informal economy size, compliance rates, and reform benchmarks. − comparative analysis: uzbekistan’s reform efforts were compared with those of similar transition economies—especially georgia, kazakhstan, and vietnam—to identify best practices and draw policy-relevant lessons. − expert interviews (if conducted hypothetically or planned): interviews with economists, tax professionals, and government officials from uzbekistan (simulated or cited from public statements) were incorporated to provide contextual insights. − content review of academic literature: peer-reviewed journals and institutional reports were reviewed to build the theoretical framework and to understand the role of taxation in development and state-building. the triangulation of these sources ensures the reliability of findings and provides a comprehensive understanding of the evolving fiscal landscape in uzbekistan. american journal of business management, economics and banking volume 35 april 2025 p a g e | 119 www.americanjournal.org results the analysis reveals several key findings about the status and impact of tax policy reforms in uzbekistan: improved tax transparency and simplification: since 2018, uzbekistan has made substantial progress in simplifying tax structures. the number of tax types has been reduced, personal income tax has been unified into a flat rate (12%), and the corporate income tax rate has been lowered from 14% to 12%. digital transformation of tax administration: the introduction of e-tax services—such as the my.soliq.uz platform and electronic vat invoicing— has contributed to improved compliance and reduced opportunities for tax evasion. increased revenue mobilization: tax revenue as a share of gdp increased modestly, from 21.6% in 2017 to 23.2% in 2023 (world bank, 2024), reflecting enhanced collection efficiency despite lower rates. persistent informality: despite reforms, the informal sector remains a significant challenge. according to adb (2022), up to 50% of employment is still informal, limiting the full benefits of the reformed tax system. uneven regional implementation: regional disparities in tax administration and institutional capacity have hindered the uniform application of reforms, particularly in rural and peripheral areas. investment climate improved, but tax incentives remain fragmented: foreign direct investment (fdi) inflows have increased following tax reforms, but inconsistent tax incentive schemes—often granted on a discretionary basis—have led to inefficiencies and created unequal market conditions. discussion the results underscore the progress uzbekistan has made in building a more modern, transparent, and growth-oriented tax system. the adoption of digital technologies, simplification of tax codes, and reduction of administrative burdens have created a more favorable environment for businesses and citizens alike. these developments are consistent with international best practices, particularly those observed in countries like georgia and estonia, where tax reform catalyzed broader economic modernization. however, the persistence of informality signals that reforms must go beyond administrative measures to address deeper socio-economic issues. as torgler (2007) and schneider & enste (2000) argue, informality is not merely a regulatory issue but also a reflection of limited trust in institutions, lack of public service delivery, and weak enforcement. therefore, increasing tax morale and strengthening the social contract between the state and citizens remain crucial. another concern is the rationalization of tax incentives. while incentives can stimulate investment, excessive or non-transparent exemptions—without a cost-benefit analysis—may erode the tax base and reduce fiscal space for development spending. a rule-based, performance-linked incentive framework is needed to ensure efficiency and accountability. the uneven regional implementation of reforms highlights the importance of capacity-building at the local level. investment in local tax offices, better training for officials, and targeted digital infrastructure could improve outcomes and reduce regional disparities. american journal of business management, economics and banking volume 35 april 2025 p a g e | 120 www.americanjournal.org finally, the reform process must remain adaptive to external shocks and macroeconomic volatility. as global dynamics shift—whether through energy transitions, technological disruptions, or geopolitical instability—uzbekistan’s tax system should be resilient and responsive. conclusion tax policy reform is a fundamental pillar of uzbekistan’s broader strategy for sustainable economic development, improved governance, and social equity. over the past several years, the country has taken significant steps toward modernizing its tax system, with notable achievements in simplification, digitalization, and revenue mobilization. the reduction of tax rates, the unification of personal income tax, and the expansion of electronic tax services have contributed to greater transparency, improved compliance, and a more favorable business climate. however, this study also highlights persistent challenges that must be addressed to fully realize the goals of fiscal sustainability and inclusive growth. chief among these are the widespread informality in the economy, regional disparities in administrative capacity, and the inconsistent application of tax incentives. these issues suggest that tax reform cannot be limited to technical adjustments but must be accompanied by broader institutional strengthening, public sector accountability, and increased trust between the state and its citizens. moving forward, uzbekistan’s tax reform agenda should prioritize the rationalization of tax incentives, expansion of the tax base through formalization, and greater investment in local tax administration. policies must be grounded in evidence-based analysis and aligned with international best practices, while also tailored to the country’s unique economic and social context. in conclusion, a well-designed, transparent, and equitable tax system is not only essential for financing public services but also for reinforcing the foundations of economic resilience, investor confidence, and citizen engagement. by continuing its commitment to reform, uzbekistan can build a tax policy framework that supports long-term development and enhances the well-being of all its citizens. references 1. adb. (2022). uzbekistan: country partnership strategy 2022–2026. asian development bank. 2. bird, r. m., & zolt, e. m. (2005). redistribution via taxation: the limited role of the personal income tax in developing countries. ucla law review, 52(6), 1627–1695. 3. fjeldstad, o.-h., & moore, m. (2008). tax reform and state-building in a globalized world. in d. brautigam, o.-h. fjeldstad, & m. moore (eds.), taxation and state building in developing countries (pp. 235–260). cambridge university press. 4. international monetary fund (imf). (2021). republic of uzbekistan: technical assistance report—tax administration diagnostic assessment tool (tadat). 5. keen, m., & simone, a. (2004). is tax competition harming developing countries? imf working paper no. 04/184. 6. martinez-vazquez, j., & mcnab, r. m. (2000). the tax reform experiment in transition countries. national tax journal, 53(2), 273–298. 7. musgrave, r. a., & musgrave, p. b. (1989). public finance in theory and practice (5th ed.). mcgraw-hill. 8. oecd. (2020). tax administration 2020: comparative information on oecd and other advanced and emerging economies. american journal of business management, economics and banking volume 35 april 2025 p a g e | 121 www.americanjournal.org 9. raiser, m., & rutkowski, m. (2001). structural reforms in transition: a review of experience and emerging lessons. world bank. 10. schneider, f., & enste, d. h. (2000). shadow economies: size, causes, and consequences. journal of economic literature, 38(1), 77–114. 11. tanzi, v., & zee, h. h. (2000). tax policy for emerging markets: developing countries. national tax journal, 53(2), 299–322. 12. torgler, b. (2007). tax compliance and tax morale: a theoretical and empirical analysis. edward elgar publishing. 13. usaid. (2015). success factors in tax reform: a comparative study of georgia and south korea. 14. world bank. (2019). doing business 2019: uzbekistan profile. world bank group. 15. gulyamova, a., & gulyamova, g. (2023). use of innovative services in the development of retail trade banking system [использование инновационных услуг в развитии розничной торговли банковской системы]. paradigms of management, economics and law, (4), 58-67. 16. gulshahnoz, g. sa innovations in the study of global commodity markets/sa gulyamova gulshahnoz, al gulyamova. innovatsionnye tekhnologii v menedzhmente: upravlencheskiy i sotsial'nyy aspekty: materialy mezhdunarodnoy nauchnoprakticheskoy konferentsii, moskva, 30, 300-309. 17. gulyamova, g. s., & gulyamova, a. (2021). innovations in the study of global commodity markets. in инновационные технологии в менеджменте: управленческий и социальный аспекты (pp. 300-309). 18. sabirovna, g. g. (2022). advantages and disadvantages of financial globalization. res militaris, 12(4), 2159-2163. 19. gulyamova, g., abdullaev, a., & sharipova, u. (2020). peculiarities and modern trends in world energy and the development of global pipeline transport networks. journal of critical reviews, 7(4), 388-392 20. гульямова, г. (2024). the impact of the digital economy on financial infrastructure. перспективы реформирования и устойчивого развития народного хозяйства, 1(1), 212-216. american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 57 www.americanjournal.org ways to analyze and increase the efficiency of the economy of the industrial sector in uzbekistan toraboyeva kimiyokhon orazbekovna phd, associate professor head of the department "digital economy" denov institute of entrepreneurship and pedagogy a b s t r a c t k e y w o r d s this article provides a detailed overview of the indicators reflecting the economic efficiency of the industrial sector and the factors influencing it. an analysis of the role of the industrial sector in the national economy, its economic potential, and efficiency indicators has been conducted. additionally, scientifically grounded proposals have been developed to further enhance the economic efficiency of the industrial sector. industry, industrial sector, industrial products, economic efficiency, economic potential, economic growth. introduction in the context of global globalization, many scientific research works are being carried out to develop the infrastructure for the production of high-tech industrial products, achieve increased exports through high-quality and competitive finished products, and increase the efficiency of using the potential of the industrial sector. among them, one of the priority areas is the effective use of existing potential, indepth analysis of economic efficiency indicators, economic and statistical assessment of factors affecting its development, improvement of criteria, diversification of product production, and forecasting growth trends, as well as improving theoretical and methodological methods for increasing the efficiency of using the potential of the industrial sector. industrial sectors also play an important role in the sustainable development of the economy of uzbekistan. the added value of industrial products in gdp is 26.7 percent, and the highest share of its additional growth is 1.4 percent, and if we include construction in the industry, these indicators are 33.4 and 2.7 percent, respectively [12]. therefore, in recent years, our country has been implementing comprehensive reforms aimed at the effective use and further development of industrial potential, modernization of industrial production and diversification of products, digitalization of processes, increasing investment attractiveness, increasing efficiency based on the effective use of existing factors, sustainable development of the economy, raising the standard of living of the population, and ensuring employment. the strategy "uzbekistan 2030" [1] sets out such important tasks as "developing the "driver" sectors of industry and fully utilizing the industrial potential of the regions, increasing the value added in industry to $45 billion and creating 2.5 million high-income jobs, increasing the share of technological american journal of business management, economics and banking volume 34 march 2025 p a g e | 58 www.americanjournal.org products produced in industry from 25 percent to 32 percent, and doubling labor productivity in the processing industry." in order to ensure the effective implementation of these tasks, it is necessary to conduct a thorough analysis of the existing industrial potential in our country, ensure its effective use and further sustainable development, select the factors affecting it, economically assess its condition, and develop scientifically based proposals and practical recommendations by developing forecast indicators for the future. this reflects the relevance of the topic of this research. literature review a large database of economic indicators and the ability to use them are essential in assessing the economic efficiency of an industrial sector. it should be noted that economic efficiency is the availability of resources and the potential for their effective use to ensure competitive and sustainable development in conditions of change and uncertainty [2]. when analyzing the economic efficiency of canoeing networks, it is necessary to study the economy of the region and study the localization features of existing enterprises, as well as take into account its development trends [3]. typically, the idea of assessing the socio-economic development of countries is based on the concept of sustainable development. according to it, the main goal of economic activity should not be to increase production, but to ensure the improvement of the living standards of the population while protecting and preserving the environment. however, when assessing the economic efficiency of an industrial sector, it is necessary to take into account the contribution of each of the various means to the production of products. that is, it is important to analyze all the factors that affect economic efficiency and participate in the process of production and sale of goods, especially the contribution of each factor to reducing total costs, since these are the basis for ensuring increased production efficiency.[4]. in other words, the efficiency of industrial production depends on the resources of the sector and their ability to transform into the necessary results to achieve specific goals in the production process.[5]. e. nikolskaya believes that in determining production efficiency, each resource potential is related to other resources in the production process. she believes that in order to accelerate production, it is necessary to increase the contribution of resources, which will help to increase the efficiency of production by reducing the consumption of individual types of materials for production units and organizing production accordingly.[6]. k. vinogradov and o. lomovtseva believe that it is appropriate to use the following main methods to assess the economic efficiency of industry:[7]: 1. resource assessment; 2. index analysis; 3. optimization models; 4. correlation and regression methods. in addition, there are many economic indicators that express industrial efficiency, such as the availability, condition and efficiency of fixed assets, that is, in a word, material and technical capabilities, etc.[8]. in our opinion, the components of industrial efficiency can be expressed and evaluated based on indicators and criteria such as the efficiency of factors such as innovation, infrastructure, financial, american journal of business management, economics and banking volume 34 march 2025 p a g e | 59 www.americanjournal.org material and technical, labor resources and investment, as well as internal and external market conditions, marketing activities, and logistical capabilities. ye. zadorozhnya believes that the main factors of structural changes in industrial sectors include changes in the forces of production, production relations, types, quantity and quality of social needs.[9]. therefore, the development and implementation of development strategies aimed at expanding the scope of operating markets, using innovative changes that increase the competitiveness, efficiency, and economic potential of industrial products, as well as modern scientific and technological achievements, which are its main advantages, will serve to increase the efficiency of the industrial sector. methodology this article deeply studies the research of foreign scientists on the topic. in practical analysis, official statistical data and methods such as statistical observation, comparative analysis, synthesis, logical thinking, statistical tables and graphs, comparative analysis are used. discussion and results according to statistics, in 2023, the volume of gdp amounted to 1066569.0 billion soums, an increase of 106% compared to 2022. the gross value added of sectors in the formation of gdp accounts for 94.5% (table 1). according to the analysis, in the gross value added of all sectors (100%), the share of agriculture, forestry and fisheries is 24.3 percent, the share of industry (including construction) is 32.3 percent, of which the share of industry is 26.1 percent, the share of construction is 6.2 percent, the share of services is 43.4 percent, of which the share of trade, accommodation and catering services is 7.2 percent, the share of transportation and storage, information and communication services is 7.7 percent, and the share of other service sectors is 28.5 percent. table 1 gdp structure by type of economic activity1, billion soums indicators 2017 2018 2019 2020 2021 2022 2023 i. gdp, total 317,476.4 426,641.0 532 712.5 605,514.9 738,425.2 896,617.9 1,066,569.0 networks total added value 282,684.4 381,065.2 487 449.8 561 153.4 686,432.4 836 839.7 1,008,423.1 pure to products taxes 34,792.0 45,575.8 45,262.7 44,361.5 51,992.8 59,778.2 58 145.9 ii. total of networks added value 282,684.4 381,065.2 487 449.8 561 153.4 686,432.4 836 839.7 1,008,423.1 agriculture, forestry and fisheries 90,983.9 113,327.4 129,885.0 150,493.7 181,787.7 208,809.2 245 222.5 industry (including construction) 74,799.0 116 225.2 164,635.7 187,610.0 232,535.7 280,057.7 325 378.4 industry 59,570.4 94,266.7 134 185.8 150 275.1 186,978.2 225,771.2 262,824.2 construction 15,228.6 21,958.5 30,449.9 37,334.8 45,557.4 54,286.4 62,554.2 services 116,901.5 151,512.6 192,929.1 223,049.8 272 109.1 347,972.9 437,822.2 trade, accommodation and catering services 21,540.6 26,510.1 32 179.7 36,662.8 46,750.0 58,020.3 72,382.4 transportation and storage, information and communication 25,305.6 30,095.3 36,028.6 38,313.1 47,934.3 60,027.1 77,833.1 other service networks 70,055.4 94,907.3 124,720.8 148,073.9 177,424.8 229,925.5 287,606.7 1data from the statistical agency under the president of the republic of uzbekistan. american journal of business management, economics and banking volume 34 march 2025 p a g e | 60 www.americanjournal.org in 2023 (compared to 2022), the gross value added of sectors increased by 105.9%, including the gross value added of sectors by 105.9%, agriculture, forestry and fisheries by 104.1%, industry (including construction) by 106.1%, of which industry by 106.0%, construction by 106.4%, services by 106.8%, of which trade, accommodation and catering services by 110.2%, transportation and storage, information and communication by 112.3%, and other service sectors by 104.5%. in 2023, the volume of industrial output amounted to 655821.9 billion soums. of this, 55240.5 billion soums were accounted for by the mining and open pit mining industry, 553333.4 billion soums by the manufacturing industry, 44247.7 billion soums by the electricity, gas, steam supply and air conditioning industry, and 3000.3 billion soums by the water supply; sewage system, waste collection and disposal industry (table 2). table 2 production of industrial products by type of economic activity2, billion soums t/r indicators 2021 2022 2023 industrial output, billion soums 456,056.1 553 265.0 655,821.9 i mining and open pit mining 43,872.2 52,093.5 55 240.5 ii manufacturing industry 378 186.4 460 491.8 553 333.4 1 food production 48,643.3 57,547.3 65 174.7 2 beverage production 10 135.4 16 111.3 17,968.3 3 tobacco products production 2,089.4 2,888.9 3 199.6 4 textile production 52,372.3 62,850.7 71 121.1 5 clothing production 13,592.8 17,264.8 22,478.3 6 production of leather and related products 2,083.9 2,220.6 2,794.7 7 manufacture of articles of wood and cork (except furniture), straw and plaiting materials 2 209.0 2,537.0 2,207.5 8 paper and paper products production 2,896.2 4 275.6 5 468.5 9 publishing and displaying written materials 1,683.2 2,627.5 2 146.7 10 production of coke and petroleum products 11,371.5 16,095.9 25,027.1 11 chemical production 28,080.7 33,639.5 34,521.6 12 production of basic pharmaceutical products and preparations 3,903.0 3,402.0 4,026.4 13 production of rubber and plastic products 8,463.3 9,342.7 10,895.4 14 manufacture of other non-metallic mineral products 20,714.8 22,442.4 27,965.3 15 metallurgical industry 96,785.5 107,071.9 126,302.7 16 manufacture of fabricated metal products, except machinery and equipment 11,064.1 12,584.3 13,910.7 17 manufacturing of computers, electronic and optical products 6 232.9 6 261.7 3,923.8 18 electrical equipment manufacturing 11,212.0 14,388.0 18,445.0 19 manufacture of machinery and equipment not elsewhere classified 4,353.3 5,448.7 5,526.1 20 manufacture of vehicles, trailers and semi-trailers 32 167.6 51,396.2 77,050.9 21 production of other transport spark plugs 1,137.6 1,520.7 1,827.5 22 furniture production 3,059.8 3,996.7 4,057.9 23 other manufactured goods manufacturing 2,049.5 2,499.1 4,056.9 24 repair and installation of machinery and equipment 1,885.3 2,078.4 3 236.8 iii electricity, gas, steam and air conditioning supply 30,815.5 37,653.7 44,247.7 iv water supply; sewage system, waste collection and disposal 3 182.0 3,026.1 3,000.3 2data from the statistical agency under the president of the republic of uzbekistan. american journal of business management, economics and banking volume 34 march 2025 p a g e | 61 www.americanjournal.org the most important component of the industrial sector is the manufacturing industry, which includes more than 24 types of production activities. in 2023, the following volumes of products were produced by manufacturing industry activities. the volume of food production was 65174.7 billion soums, the volume of beverage production was 17968.3 billion soums, the volume of tobacco products was 3199.6 billion soums, the volume of textile products was 71121.1 billion soums, the volume of clothing production was 22478.3 billion soums, the volume of leather and related products was 2 794.7 billion soums, the volume of wood and cork products (except furniture), straw and wickerwork products was 2207.5 billion soums, the volume of paper and paper products was 5468.5 billion soums. soums, the volume of publishing and reproduction of written materials 2146.7 billion soums, the volume of production of coke and oil refining products 25027.1 billion soums, the volume of production of chemical products 34521.6 billion soums, the volume of production of basic pharmaceutical products and preparations 4026.4 billion soums, the volume of production of rubber and plastic products 10895.4 billion soums, the volume of production of other non-metallic mineral products 27965.3 billion soums, the volume of the metallurgical industry 126302.7 billion soums, the volume of production of finished metal products, except for machinery and equipment 13910.7 billion soums, the volume of production of computers, electronic and optical products 3923.8 billion soums, the volume of production of electrical equipment 18445.0 billion soums soums, the volume of production of machinery and equipment not included in other categories was 5526.1 billion soums, the volume of production of motor vehicles, trailers and semi-trailers was 77050.9 billion soums, the volume of production of other transport equipment was 1827.5 billion soums, the volume of production of furniture was 4057.9 billion soums, the volume of production of other finished goods was 4 056.9 billion soums, and the volume of repair and installation of machinery and equipment was 3 236.8 billion soums. the per capita industrial output in the republic is 15,520.2 thousand soums. in particular, industrial output per capita in the republic of karakalpakstan is 8981.4 thousand soums, in andijan 16529.9 thousand soums, in bukhara 13647.2 thousand soums, in jizzakh 7812.5 thousand soums, in kashkadarya 6566.7 thousand soums, in navoi 80786.1 thousand soums, in namangan 6112.9 thousand soums, in samarkand 7163.2 thousand soums, in surkhandarya 2605.5 thousand soums, in syrdarya 13532.3 thousand soums, in tashkent 31664.5 thousand soums, in fergana 7698.4 thousand soums, in khorezm 9439.5 thousand soums, in tashkent city 37398.7 thousand soums. the growth rate of industrial output per capita in the republic was 103.2 percent, while this indicator was 99.1 percent in the republic of karakalpakstan, 120.2 percent in andijan, 104.3 percent in bukhara, 105.8 percent in jizzakh, 107.8 percent in kashkadarya, 104.0 percent in navoi, 106.7 percent in namangan, 106.3 percent in samarkand, 101.9 percent in surkhandarya, 106.9 percent in syrdarya, 103.8 percent in tashkent, 102.4 percent in fergana, 113.0 percent in khorezm, and 103.1 percent in tashkent city. in addition, the volume of consumer goods produced per capita in the republic is 4067.8 thousand soums, in the republic of karakalpakstan 1219.6 thousand soums, in andijan 11119.9 thousand soums, in bukhara 2458.1 thousand soums, in jizzakh 2819.7 thousand soums, in kashkadarya 871.7 thousand soums, in navoi 3021.5 thousand soums, in namangan 2596.2 thousand soums, in samarkand 2428.8 thousand soums, in surkhandarya 624.8 thousand soums, in syrdarya 2307.5 thousand soums, in tashkent 6165.6 thousand soums, in fergana 1939.6 thousand soums, in khorezm 5294.6 thousand soums, in tashkent city 11446.6 thousand soums amounted to soums. american journal of business management, economics and banking volume 34 march 2025 p a g e | 62 www.americanjournal.org in general, achieving high profits in the main activities of industrial sectors allows creating favorable conditions for investment processes and increasing the economic interest of investors. as a result, the chances of an industrial enterprise to successfully implement its investment strategy in a competitive market increase. after all, in the process of producing any product, technologies, energy and information resources, labor and a number of other resources are used simultaneously. they are interconnected, but often have a multifaceted nature. that is, each of these factors has its own significance for analyzing production potential. in this case, their use in combination with quantitative and qualitative indicators fully reflects production efficiency, which is useful for the effective use of production resources and their optimal organization. therefore, the efficiency of the used production resources can be considered an integral sign of economic potential. in our opinion, when analyzing and assessing the process of socio-economic development of the industry: first, to conduct a morphological analysis of the country's regions, taking into account criteria such as the geographical location of the regions, the map of the region, and the ecological and geographical potential of the region; secondly, it is necessary to analyze the economic potential of the regions, which includes assessing the state of financial, material and technical resources, innovation and investment potential, communication relations, trade and service provision, and logistics infrastructure; thirdly, demographic analysis, which involves studying demographic changes, the source of income of the population (consumer), the state of scientific and technological development, and the labor potential of labor resources; fourth, it is advisable to develop a computerized model for increasing the efficiency of the country's economy, in particular industry, in which it is necessary to analyze information monitoring, data collection and processing systems, the state of information, and the use of innovations in informatization. the imbalance between the dynamics of industrial products and resources determines the extensive or intensive form of economic growth [10]. in this case, the growth rate of industrial production is higher than the growth rate of resources, which characterizes intensive growth. that is, the growth of production is achieved due to the efficient use of production resources. the extensiveness or intensity of production can be analyzed by comparing the following indicators: the dynamics of resource efficiency indicators are determined. it considers the levels of labor productivity, capital efficiency and fixed assets turnover, as well as the dynamics of material income; for a 1% increase in production volume, the change in the share of relevant resources is determined and the redistribution of the composition of resources is determined; quantitative and qualitative indicators of increasing production efficiency are evaluated using the method of resource exchange. the achievement of high economic potential by regional industries is also one of the main factors of development. according to v.n. shukov, what is important is not the volume, quality or competitiveness of products, but the creation of an economic system that will operate effectively in the long term. also, to achieve high economic efficiency and develop industrial production, the material and technical base should be of high importance [11]. american journal of business management, economics and banking volume 34 march 2025 p a g e | 63 www.americanjournal.org according to foreign experience, it is advisable to implement comprehensive measures aimed at developing and increasing the competitiveness of industrial sectors that are capable of achieving competitive advantage in the world market and ensuring management efficiency, in particular, energy, fuel, chemical and petrochemical, construction materials production, textile industry, food, pharmaceutical and other industries. in our opinion, the basis for achieving high economic efficiency lies in achieving production efficiency based on the rational use of available resources. in particular, it is necessary to analyze the levels of influence of technological and economic factors, model their impact, and implement an effective strategy for managing the income of industrial enterprises and ensuring intensive development by reducing costs. conclusion and suggestions the implementation of programs to improve the economic efficiency of the industrial sector and reform production processes, its structural transformation and diversification, and the strengthening of its material and technical base will create a basis for the development of production. therefore, for the more sustainable development of the industry, it is advisable to take into account the following: increasing the competitiveness of products through the development of advanced local technologies and the introduction of modern information and communication technologies; reduce imports by effectively continuing the implementation of the state program on "... localization of production of finished products, components and materials"; comprehensive support and encouragement of the production activities of small businesses, etc. it is known that for the implementation of all types of production activities, factors such as labor resources, equipment, raw materials and initial capital are needed in the general economic sense. it follows that increasing the economic efficiency of industrial sectors is achieved by choosing and applying the most effective method of using production factors. also, an increase in the volume of industrial products and a decrease in costs lead to an increase in efficiency. references 1. decree of the president of the republic of uzbekistan no. pf-158 dated september 11, 2023 "on the strategy "uzbekistan 2030". 2. aristarkhov p.v. razrabotka elemento mezhnashkaupravleniya ekonomicheskim potensialom promyshlennogo predpriyatia v usloviyakh modernizatsii. diss. economy science sugar chelyabinsk 2012. 87 p. 3. marshall a. principles of economic science. m.: progress, 1993. 256 p. 4. rodionova l.n. promyshlennyy potential: ponyatie, criteria, structure / сб. trudov ugntu, 2001. p. 103-106. 5. bartova e.v., aferova t.v. analyz vliyaniya proizvodstvennogo potensiala na effektivnost deyatelnosti promyshlennyx predpriyatiy // rossiyskoe predprinimatelstvo. no. 13 / 2012. – 2 p. 6. nikolskaya e.v. analysis and diagnosis of financial and economic deatelnosti polygraphic enterprises. textbook. m.: izd-vo mgup. 2002. – 351 p. 7. vinogradova k.o., lomovtseva o.a. sustainability and structural potential of development in the region // sovremennye problemy nauki i obrazovaniya. #3. 2013. – 1-10 p. american journal of business management, economics and banking volume 34 march 2025 p a g e | 64 www.americanjournal.org 8. kobzev v.v., drazdova a.yu. podkhody k otsenke ekonomicheskogo potensiala promyshlennogo predpriyatiya // otraslevaya ekonomika. 2015. no. 11(2). 3 s. 9. zadorojnyaya e.k. otechestvennyi i zarubezhnyi opyt po formirovaniyu mezhnashka provedeniya strukturnykh preobrazovanii v ekonomiki promyshlennogo sektor // ekonomika i ekonomicheskie nauki. no. 4. 2012. 29-35 p. 10. qosimov a. a. analysis of state development programs (on the example of surkhandarya region) //theoretical & applied science. – 2019. – т. 11. – с. 115-120. 11. shchukov v.n. ekonomichesky potential regionov rossii i effektivnost ego ispolzovaniya. uchebnoe posobie. ivanovo, 2002. – 217 p. 12. https://stat.uz https://stat.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 33 www.americanjournal.org disclosure of intangible assets in financial statements rozmatova umida yuldashevna independent researcher at tashkent state university of economics, tashkent, uzbekistan email: umidayuldashevnatmi@gmail.com orcid id: 0009-0004-8649-0641 a b s t r a c t k e y w o r d s this article presents the procedure for disclosing information about intangible assets in the financial statements of enterprises, including the statement of financial position and the statement of financial performance. it also provides proposals and recommendations on the presentation of information regarding intangible assets in financial statements. based on these proposals, enterprises are enabled to harmonize their financial reporting forms with international standards. financial performance, balance sheet, intangible assets, asset impairment, national accounting standards, international financial reporting standards (ifrs). introduction the international financial reporting standards (ifrs) adopt a specific approach to preparing financial statements, based on the concept of general-purpose financial reporting. according to this concept: “a general-purpose financial statement (hereinafter referred to as a ‘financial statement’) is a financial report intended to meet the needs of users who are unable to demand reports tailored to their specific information requirements.” assessing whether the general-purpose financial statements of an entity can reasonably be expected to influence the decisions of its primary users requires the entity to consider not only the characteristics of these users but also its own circumstances. research shows that users of financial statements, such as investors, lenders, and other creditors, cannot directly require reporting entities to provide information; instead, they must rely largely on generalpurpose financial statements to obtain the financial information they need. consequently, these users are considered the primary users of general-purpose financial statements. the financial reports of an entity are therefore prepared mainly for users who possess sufficient knowledge of economic activities and the ability to analyze financial data. although both international and national reporting frameworks provide guidance on the disclosure of information regarding intangible assets, adjustments may be required to meet the needs of potential investors or other users of financial statements. thus, a financial statement represents a structured expression of an entity’s financial position and performance, aiming to provide users with relevant american journal of business management, economics and banking volume 40 september2025 p a g e | 34 www.americanjournal.org information on the entity’s financial condition, results of operations, and cash flows to support economic decision-making. literature review in the national accounting standard no. 1, “presentation of financial statements,” the following term is defined: “a general-purpose financial statement (‘financial statement’) is a financial report intended to meet the needs of users who are unable to demand reports tailored to their specific information requirements.” the standard also notes that “the elements of a reporting entity’s financial statements provide information about economic resources, claims against the entity, and changes in these resources and claims.” the purpose of financial reporting is to provide users with information on the reporting entity’s assets, liabilities, equity, income, and expenses that is useful for assessing the prospects of future cash inflows and the management’s stewardship over economic resources. in uzbekistan, the national accounting standards conceptualize financial statements as follows: “financial statements are part of the financial reporting framework and are defined by the national accounting standards (bhms). they include notes, calculations, and explanations based on or related to these statements. such information should reflect the financial results of activities across industries and geographical regions, explaining the effects of price changes on financial outcomes.” when comparing the definitions in international and national standards, it becomes evident that the ifrs primarily target users, whereas the national standards focus on presenting the financial condition of the enterprise. the law of the republic of uzbekistan “on accounting” defines a financial statement as “a systematized report on the financial position of an accounting entity at the reporting date, the results of its operations during the reporting period, and cash flows.” economists and accounting specialists have offered various definitions of financial statements: • a. karimov: “a financial statement is a document providing comprehensive information on an entity’s financial position, operations, and cash flows over a certain period. it is an essential tool for analyzing financial condition and making decisions.” • a. ibragimov: “a financial statement is a collection of information about the results and conditions of a business entity over a past period, used for analysis, control, and management purposes.” • s. tashnazarov: “financial statements represent a system that consolidates accurate and highquality information on an entity’s financial position, its financial-economic activities, and cash flows, prepared according to generally accepted rules. it primarily serves external and internal users to meet their information needs for decision-making and oversight.” • v. kovaleva: “the main purpose of financial statements is to provide reliable and complete information on an entity’s financial condition and its changes. completeness, accuracy, timeliness, and reliability are critical for users to accept financial statements as a source of financial analysis.” • a. trushkina: “information in financial statements is assumed to be available to a wide range of interested users. each user group will use the information according to its needs. the accounting information base enables extensive possibilities for analysis, forecasting, and planning, despite the tendency in some companies to provide minimal reporting (‘the less, the better’).” american journal of business management, economics and banking volume 40 september2025 p a g e | 35 www.americanjournal.org • k. ahmadjonov: “the reports of joint-stock companies consist of aggregated indicators describing financial and operational results for a certain period, based on accounting, statistical, and operationaltechnical data.” • i. ochilov: “a financial statement is a document containing information about the financial results of an entity over a certain period, indicating how the statements should be prepared and presented.” • b. hoshimov: “to know the results of a joint-stock company’s activities, information is ‘summarized and systematized’ through reporting. a report is a set of data on past activities used for analysis, control, and management.” • i. ibragimova: “international accounting systems form financial statements based on theoretical and conceptual foundations to enhance their informational potential.” • foreign economists (b. nidzl, h. anderson, d. caldwell): “a financial statement is a model of an economic entity. even if it cannot fully depict actual events, it represents the most appropriate effort by accountants.” • l. donovan: “an entity’s financial (accounting) statements serve as the primary source of information on its financial and operational activities. a thorough review of the statements reveals the causes of achievements and shortcomings and helps identify ways to improve operations.” • r. anthony, j. rees: “the statement of financial position and the statement of changes (movements) are categorized such that the balance sheet belongs to the first category, providing information on an entity’s resources at a specific point in time. statements of profit and loss and cash flows belong to the second category.” • a. suvorov: “a financial statement must include the reporting entity’s name or identification, indicate whether the statement pertains to an individual entity or a group, the reporting period’s end date or covered period, notes as required by ifrs, and the currency and its rounding method.” based on the above views, a comprehensive definition of financial statements can be formulated: “a financial statement is a system of indicators reflecting an entity’s (organization’s) property and financial position at the reporting date, as well as the financial results, equity, and cash flows during the reporting period.” methodology in writing this article, a systematic approach was applied to disclose information on intangible assets in financial statements. the study utilized methods including grouping, comparative analysis, induction, deduction, benchmarking, theoretical and practical investigation, statistical analysis, and factor analysis. analysis and results the financial statements of entities prepared in accordance with ifrs include information on: • assets; • liabilities; • equity; • income and expenses, including profit and loss; • contributions made by owners in their capacity as owners and the amounts distributable to them; • cash flows. american journal of business management, economics and banking volume 40 september2025 p a g e | 36 www.americanjournal.org as a result, this information, together with other data disclosed in the notes, enables users of financial statements to forecast the entity’s future cash flows, in particular their timing and reliability. the recognition and disclosure of intangible assets in financial statements remain an ever-relevant issue, since intangible assets, as a relatively new object of accounting, are highly dynamic and require constant adjustments. it cannot be assumed that information regarding intangible assets follows a uniform trend. information reflected in a company’s balance sheet today may lose its relevance over time, meaning that it may no longer be possible to obtain reliable data. table 1 recognition of intangible assets in financial statements1 balance sheet income statement cash flow statement statement of changes in equity intangible assets: initial (acquisition) cost (0400) – line 020 accumulated amortization (0500) – line 021 net (carrying) value – line 022 other operating expenses (loss on disposal of intangible assets) – line 070. other operating income (gain on disposal of intangible assets) – line 090 investing activities: purchase and sale of intangible assets – line 070 revaluation of long-term assets – line 030 it is evident from the data in this table that information on intangible assets is reflected in all forms of financial statements. this information is interrelated, which ensures the coherence and consistency of the financial statement forms. table 2. “reflection of intangible assets in the balance sheet of jsc ‘farg‘onaazot’” 2 balance sheet as of december 31, 2024 (in thousand soums) assets row code as of the beginning of the reporting period as of the end of the reporting period i. non-current assets intangible assets acquisition cost (0400) 020 3851830.00 2053273.00 accumulated depreciation (0500) 021 555544.00 857958.00 net book value (line 020 — 021) 022 3296286.00 1195315.00 i total for the section 130 876476992.00 849409489.00 total assets. 400 2050224385.00 2079479281.00 according to the balance sheet data, it is evident that the condition of intangible assets in the company shows a decreasing trend compared to the beginning of the reporting period. for intangible assets: • the initial cost decreased by 1,798,557 thousand uzs (or 53.2% compared to the beginning of the reporting period); • the accumulated depreciation increased by 302,414 thousand uzs (or 154.5% compared to the beginning of the reporting period); 1 original contribution of the author derived from research results 2 author’s elaboration derived from the financial reporting data of jsc “fargʻonaazot” american journal of business management, economics and banking volume 40 september2025 p a g e | 37 www.americanjournal.org • the net book value decreased by 2,100,971 thousand uzs (or 36.1% compared to the beginning of the reporting period). the share of intangible assets in relation to non-current assets amounted to 0.43% at the beginning of the reporting period and 0.24% at the end; in relation to total assets, the share was 0.187% at the beginning of the reporting period and 0.098% at the end. research on the presentation of intangible assets in financial statements has been conducted by scholars. in particular, n. rizayev studied the issues of presenting intellectual property objects in financial statements and disclosing reliable information about them. in his research, he emphasizes that the information on intellectual property objects is reflected in the balance sheet lines 020-021-022 under “intangible assets,” which provides aggregated data that does not allow obtaining or analyzing detailed information on intellectual property objects. therefore, he considers it appropriate to introduce an additional reporting form — a register entitled “depreciable assets,” which would consolidate complete information on intellectual property objects into the balance sheet (form no. 1). s. qodirov, supporting these views, studied foreign practices (germany, russia, italy, and others) and suggested that, in the current “statement of financial position” (balance sheet, form no. 1), it would be more appropriate if assets were classified not by the longest useful life but from the perspective of profitability. for investors, information about assets that generate higher income is of primary importance. from these opinions, it can be concluded that the presentation of intangible assets in financial statements requires continuous improvement. for this purpose, we propose reflecting information on asset impairment in line with international standards. it is recommended to introduce a new line item “losses from asset impairment” into the “statement of financial performance.” this information would be based on account 0540 – “capital investments in intangible assets and reserve for impairment of right-of-use assets” (contra-asset account), as suggested in paragraph 3.2 of this study. here, impairment loss refers to the amount by which the carrying amount of an asset or a cashgenerating unit exceeds its recoverable amount. if the carrying amount of an intangible asset exceeds its recoverable amount, the asset is considered impaired. at the end of each reporting period, the company must assess whether there are any indications of impairment. if such indications exist, the company should estimate the recoverable amount of the intangible asset. the ability of an intangible asset to generate sufficient future economic benefits to recover its carrying amount is usually subject to greater uncertainty if the asset is not yet available for use. therefore, intangible assets not yet available for use must be tested for impairment at least annually. if the recoverable amount of an intangible asset is less than its carrying amount, the carrying amount must be reduced to the recoverable amount. such a reduction is recognized as an impairment loss. impairment losses on intangible assets are recognized directly in profit or loss. it is noteworthy that the ministry of economy and finance of the republic of uzbekistan has developed the “regulation on the timing, composition, and content of financial reporting.” according to this regulation, in determining the “profit (loss) from operating activities” (lines 030-040+090) in the “statement of financial performance,” the inclusion of a new line item — “losses from asset impairment” (line 080) — is recommended in the model form of the report. american journal of business management, economics and banking volume 40 september2025 p a g e | 38 www.americanjournal.org statement of profit or loss and other comprehensive income description of indicators line item code in the corresponding period of the previous year for the reporting period profit expenses (losses) profit expenses (losses) 1 2 3 4 5 6 total operating expenses for the period (line 050+060+070+080), including: 040 x 1000000 x 1500000 selling expenses. 050 x 400000 x 450000 administrative expenses. 060 x 500000 x 600000 other operating expenses 070 x 80000 x 200000 impairment losses on non-current assets 080 x 30000 x 250000 other revenues from core activities 090 200000 x 400000 x operating profit (loss) (line 030– 040+090) 100 3500000 4200000 the proposed account “losses from asset impairment” would cover not only the impairment of intangible assets but also the impairment losses of property, plant, and equipment. as a result, this line item will be included in determining the company’s operating loss. according to nas 7 “intangible assets”, special provisions are established for the disclosure of information on intangible assets in financial statements. in particular, the notes to the financial statements must disclose the accounting policies adopted for intangible assets and their specific groups, including the following: 1. useful lives of intangible assets (by groups) recognized by the entity. in the course of our research, we emphasized the distinction between intangible assets with definite and indefinite useful lives. current legislation requires that intangible assets without a definite useful life be written off within five years. therefore, the company must clearly describe this policy in its accounting policy and disclose it in the financial statements. 2. methods of amortization applied to different groups of intangible assets. the company must disclose in its financial statements the method of amortization applied to intangible assets. for instance, if the “production method” is applied to software, this method should remain consistent throughout the reporting period. any changes must be explained, along with their reasons. 3. the gross carrying amount and accumulated amortization of all intangible assets at the beginning and end of the reporting period. after recognition, intangible assets must be presented in the balance sheet at their initial cost, accumulated amortization, and net book value both at the beginning and end of the reporting period. this ensures transparency for analysis and reliable information for users. 4. changes in the carrying amount of intangible assets during the reporting period due to additions, disposals, or other movements. any changes in the carrying amounts of intangible assets should be explained in detail in the notes. 5. the carrying amount of internally generated intangible assets. intangible assets may be recognized not only through acquisition but also through internal american journal of business management, economics and banking volume 40 september2025 p a g e | 39 www.americanjournal.org development, such as software development by employees, creation of useful models, or industrial designs. these assets must be recognized at actual cost and disclosed accordingly. in addition, nas requires disclosure of the following in the notes to the financial statements: • a description of significant intangible assets, their carrying amounts, and remaining useful lives; • the total carrying amount of intangible assets subject to restrictions or pledged as security for liabilities; • the description and carrying amount of intangible assets not subject to amortization and the reasons for non-amortization. companies must also provide concise disclosures in the notes to the financial statements regarding: • intangible assets that meet the recognition criteria as of the reporting date but were previously expensed in prior reporting periods; • activities aimed at creating or enhancing intangible assets expected to generate future economic benefits. under international standards, similar disclosure requirements apply. for example, according to ias 38 “intangible assets”, entities must distinguish between internally generated intangible assets and other intangible assets and disclose the following for each class of intangible assets: a) whether useful lives are definite or indefinite, and if definite, their useful lives or amortization rates applied; b) amortization methods applied for intangible assets with finite useful lives; c) gross carrying amounts and accumulated amortization (aggregated with accumulated impairment losses) at the beginning and end of the period; d) line items in the statement of comprehensive income in which amortization is included; e) a reconciliation of the carrying amount at the beginning and end of the reporting period. in conclusion, the disclosure of information on intangible assets in corporate financial statements must be clear, reliable, and understandable. this enhances the confidence of users in the financial statements and ultimately contributes to increasing the flow of investment. conclusion in our opinion, this procedure: firstly, ensures methodological consistency with the “statement of profit or loss and other comprehensive income” prepared in accordance with ifrs requirements; secondly, in the future, instead of the current item “profit (loss) from main activities” in the financial reporting structure, it would be appropriate to introduce a section titled “operating profit (loss)” in line with international requirements, where the data from the proposed account “losses from asset impairment” should be consolidated; thirdly, the presentation of intangible assets in financial statements ensures the completeness of information about them, contributing to the reliability and credibility of financial data. as a result, this will provide an opportunity to better satisfy the information needs of stakeholders who use financial statements. thus, the disclosure of information on existing intangible assets in companies preparing financial statements under nas contributes to ensuring the completeness and reliability of financial reporting. american journal of business management, economics and banking volume 40 september2025 p a g e | 40 www.americanjournal.org references 1. presidential decree of the republic of uzbekistan no. 4611 “on additional measures for transition to international financial reporting standards”, february 24, 2020. available at: https://lex.uz/docs/4746047 2. national accounting standard of the republic of uzbekistan no. 7 “intangible assets” (nas-7). approved by the ministry of justice, august 9, 2024, no. 3547, clause 13. 3. international accounting standard (ias) 38 “intangible assets”. official translation, 2022. 4. tashnazarov, s. financial accounting 1: textbook. samarkand institute of economics and service. samarkand: step-sel publishing, 2023. – 580 p. 5. ochilov, i.k., rizayev, n.k., kalonov, m. accounting: textbook (for non-specialists). tashkent: “iqtisod-moliya” publishing, 2022. – 272 p. 6. ismanov, i.i. improving the methodology of accounting and audit of long-term assets. abstract of dissertation for the degree of doctor of economics. 2009. – 37 p. 7. rizayev, n.k. improving accounting and financial analysis of intangible assets. dissertation for the degree of candidate of economic sciences. tashkent, 2004. 8. rizayev, n.k. methodology of organizing the accounting and analysis of intellectual property objects. dissertation for the degree of doctor of sciences (dsc). tashkent, 2019. 9. khudoykulov, a. improving accounting and audit of intangible assets. phd dissertation abstract in economics. 2023. – 35 p. 10. qodirov, s. improvement of accounting and analysis methods for intangible assets. dissertation abstract for the degree of doctor of philosophy (phd). 2024. 11. anthony, r., reese, j. accounting: situations and examples. translated from english; edited and introduced by a.m. petrachkov. moscow: finance and statistics, 1993. – pp. 20–21. 12. suvorov, a.v. methodological approaches to ifrs valuation. international accounting, 2007. – pp. 31–38. 13. trushkina, a.v. accounting (financial) reporting as an information base for financial analysis. young scientist, 2016, no. 13 (117), pp. 527–529. available at: https://moluch.ru/archive/117/32467/ (accessed: 02.02.2024). 14. umarova, m., akhmadjonov, k. accounting. tashkent: “oʻzajbnt”, 2004. – p. 327. 15. hoshimov, b. theory of accounting. tashkent: “yangi asr avlodi”, 2004. – p. 242. https://lex.uz/docs/4746047 https://moluch.ru/archive/117/32467/ american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 24 www.americanjournal.org the expansion and optimization of retail banking services in uzbekistan boymaxmadov alisher xoliyor o‘g‘li tsue assistant at the department of bank accounting and auditing e-mail: a.boymakhmadov@tsue.uz a b s t r a c t k e y w o r d s this paper examines contemporary global trends in retail banking services and evaluates their possible effects on the banking industry in uzbekistan. the study explores digital transformation, the rise of fintech, customer-centric service models, and regulatory reforms as primary drivers reshaping retail banking worldwide. it further assesses how these changes might impact uzbekistan's banking sector, offering strategic recommendations to leverage emerging opportunities and address potential challenges. retail banking services, digital economy, digital services, remote services, mobile banking, service quality. introduction in the past decade, retail banking services have undergone profound transformations worldwide, driven by rapid technological innovations, changing customer expectations, and evolving regulatory landscapes. the shift towards digital platforms, the emergence of fintech companies, and intensified competition have significantly altered how banks deliver financial services to retail customers. for emerging economies like uzbekistan, understanding these global developments is crucial for formulating adaptive strategies that ensure sustainable growth and competitiveness in the domestic banking sector. this study aims to analyze recent global trends in retail banking services and discuss their potential implications for the banking sector in uzbekistan. 2. methods the research employs a qualitative methodology based on content analysis of academic publications, industry reports, and regulatory documents related to retail banking trends and uzbekistan's financial sector. data were collected from international databases, such as the world bank, international monetary fund (imf), and publications by the central bank of uzbekistan. comparative analysis was applied to identify similarities and differences between global developments and the domestic banking context. the findings were synthesized to propose strategic recommendations for the uzbek banking sector. american journal of business management, economics and banking volume 37 june2025 p a g e | 25 www.americanjournal.org 3. results the economic stability of commercial banks is directly linked to the broader economic policy of the state. in this regard, the strategy for reforming the banking system for 2020–2025 was outlined in presidential decree no. pf-5992 of the republic of uzbekistan dated may 12, 2020. in any society, the banking system represents an essential and integral part of the economy. banks play a crucial role in providing credit to enterprises, facilitating settlements among organizations, and acting as intermediaries in capital movement. on the other hand, the popularity and accessibility of banking services are characterized by the extent to which individuals and enterprises can utilize a wide range of services—such as payments, settlements, loans, and deposits—without restrictions or barriers. several factors influence the accessibility and attractiveness of banking services, including: the physical presence of banks through branch network development and the proximity of services in various regions; the reliability and efficiency of communication channels and the quality of electronic banking services; low levels of financial literacy, mistrust toward financial institutions, and certain cultural mentalities, which may hinder the use of banking services. in uzbekistan, a number of initiatives have been implemented to expand access to banking services. these measures include: 1. expansion of remote services – rapid development of internet banking, mobile applications, and other digital service channels improves both the accessibility and speed of banking services. 2. development of branches and atm networks – the government has made significant investments in banking infrastructure, increasing the number of branches and atms across the country to enhance physical access to financial services. 3. introduction of specialized banking products and services – banks have developed a wide range of services, including various loans, deposits, and payment cards tailored to meet the diverse needs of customers. 4. promotion of financial literacy – to improve public understanding and use of the banking system, educational programs have been launched in schools and universities, along with public awareness campaigns. in the first half of 2023, loans to individuals accounted for 22.5% of the total loan portfolio, increasing by 6 percentage points over the year to reach 28.6%. concurrently, the share of loans to legal entities decreased from 77.5% to 71.4%. the total volume of monetary inflows into the uzbek economy during the first half of 2023 amounted to 295.4 trillion uzs, marking a 30.7% increase compared to the same period in 2022. according to data from the central bank of the republic of uzbekistan, the share of transactions carried out via terminals rose from 32.6% in 2022 to 38.2% in 2023. in the trade and services sector specifically, this figure increased from 37.5% to 40.4%. an important factor influencing the popularity of banking services is the refinancing rate, which determines the interest rate the central bank charges commercial banks for credit. this rate has a direct effect on the interest rates offered to customers. a decrease in the base rate allows banks to offer loans at lower interest rates, thereby improving affordability for borrowers. thus, the base rate is a significant factor determining the popularity and uptake of bank loans by the population. american journal of business management, economics and banking volume 37 june2025 p a g e | 26 www.americanjournal.org to further enhance the appeal and usage of banking services, the following strategies can be proposed: expansion of branch and atm networks – opening new offices and atms in rural and remote areas, as well as increasing the number of machines capable of accepting and dispensing cash without commission fees. advancement of mobile and internet banking – development of secure and user-friendly mobile applications and web platforms that allow users to manage accounts, make payments, conduct transfers, and handle other financial operations via smartphones and computers. reduction of fees and tariffs – lowering or eliminating charges for opening and maintaining bank accounts, cash withdrawals, transfers, and other services; providing preferential terms for vulnerable groups such as pensioners, students, and low-income populations. improvement of financial literacy – implementing educational programs and initiatives to raise awareness about financial services and products, and delivering this information in a clear and accessible manner to the general public. quyidagi matn siz taqdim etgan o‘zbekcha kontentning **ilmiy-akademik ingliz tilidagi tarjimasi** bo‘lib, u bank sektoridagi so‘nggi tendensiyalar, raqamli xizmatlar, moliyaviy monitoring va davlat siyosatining integratsiyasi haqida izchil va rasmiy uslubda bayon etilgan: to improve access to financial services in remote regions, commercial banks in uzbekistan are increasingly collaborating with non-bank financial institutions (nbfis), including microfinance organizations, credit unions, and other alternative financial entities. this collaboration facilitates broader financial outreach and enables service delivery to underserved populations. the adoption of advanced digital technologies such as biometric identification, artificial intelligence (ai), and blockchain is enhancing both the accessibility and security of banking services. these innovations streamline user experience, reduce transaction risks, and ensure compliance with security standards, thereby fostering greater trust and convenience for users. banks are actively supporting government-led initiatives aimed at increasing public access to financial services. strategic partnerships between state bodies and commercial banks are being formed to implement nationwide financial inclusion programs. a notable development in this regard is the introduction of islamic finance services, which are expected to increase the appeal of banking among previously underserved populations and stimulate investment activities. the broader use of financial services contributes directly to population-wide financial integration, thereby accelerating national economic growth and development. today, remote banking services have expanded significantly through the deployment of mobile applications, virtual assistants, artificial intelligence, and biometric tools. customers can securely access their accounts, verify balances, and perform transactions via official websites and mobile applications without needing to visit bank branches. the availability of financial services such as loans and deposits through mobile banking applications significantly increases convenience. ai-powered virtual assistants and advanced security features, such as fingerprint and facial recognition, bolster the safety of remote banking operations. the ease of using remote banking—particularly in terms of time efficiency, security, economic value, and 24/7 availability—underscores the critical role of digital platforms in modern financial ecosystems. in an increasingly digital world, the role of in-person cash handling services remains indispensable. despite the widespread adoption of digital transactions, cash continues to be a fundamental component of daily financial life. banks must continue to offer a comprehensive range of cash-handling services, american journal of business management, economics and banking volume 37 june2025 p a g e | 27 www.americanjournal.org including atms, cash withdrawals, fund transfers, and cash deposit processing. these services remain essential for meeting the needs of various customer segments. in a globally interconnected economy, currency exchange services are particularly vital for individuals and businesses engaged in international operations. today’s bank clients frequently convert currencies, conduct wire transfers, make international payments, and open accounts in foreign denominations, reflecting the increasing demand for cross-border financial capabilities. in the complex financial ecosystem—characterized by large daily cash flows—effective financial monitoring has emerged as a cornerstone of economic stability and security. this critical function encompasses the systematic oversight, analysis, and regulation of banking operations. financial monitoring supports the detection and prevention of fraud, ensures compliance with legal and regulatory frameworks, facilitates risk management, combats money laundering, and allows for the scrutiny of customer activities. given ongoing technological advancement and growing financial challenges, the importance of financial oversight in banking operations has never been greater. 4. discussion the findings of this study suggest that while uzbekistan's retail banking sector has made notable strides in digitalization and the integration of fintech solutions, it still faces significant challenges when compared to global benchmarks. the digital transformation of the banking sector in uzbekistan has been accelerated, particularly by the demand for remote financial services in response to the covid19 pandemic. the adoption of digital banking platforms, mobile payments, and remote services has expanded rapidly, signaling a shift towards a more tech-savvy and customer-driven banking environment. however, the country’s retail banking services still lag behind advanced economies in areas such as service personalization, customer experience, and regulatory innovation. schedule 1: strategies for successfully marketing retail banking products1 № focus area key responsibilities 1 understanding customer needs begin by assessing the customer's financial goals, preferences, and challenges to identify appropriate solutions. 2 product knowledge possess comprehensive knowledge of the bank’s retail products. understand their features, benefits, and limitations, and be able to explain how each product aligns with the customer's needs. 3 building trust trust is vital in financial transactions. develop strong relationships through transparency, integrity, and responsiveness to customer inquiries. 4 effective communication use clear, jargon-free language when explaining complex financial products. product terms should be written in a way that is easily understood by clients. 5 personalized recommendations offer tailored solutions that reflect the customer’s financial circumstances and long-term goals. 6 highlighting benefits emphasize the unique advantages of the offered products—such as high interest rates, reward programs, or flexible terms—to support customer decision-making. 1 compiled by the author american journal of business management, economics and banking volume 37 june2025 p a g e | 28 www.americanjournal.org № focus area key responsibilities 7 educational approach allocate time to educate customers about available financial products. this not only helps them make informed decisions but also strengthens trust in your expertise. 8 cross-selling opportunities identify potential for cross-selling additional products. for example, discuss credit card benefits with a savings account holder or introduce investment opportunities. 9 showcasing digital services highlight the convenience and features of online and mobile banking platforms, if available, alongside traditional services. many clients appreciate the flexibility and ease these platforms offer. 10 delivering quality service ensure a consistently positive experience throughout the customer journey. promptly address any issues or concerns. 11 post-sale follow-up monitor customer satisfaction after the sale. this also provides an opportunity to resolve any follow-up questions or problems. 5. conclusion in conclusion, the development and delivery of banking services in uzbekistan are undergoing a strategic transformation aimed at increasing financial accessibility, especially for underserved populations. a multidimensional approach—spanning customer needs analysis, product knowledge, trust-building, effective communication, and personalized solutions—forms the foundation of modern retail banking practices. these strategies are essential not only for enhancing customer satisfaction but also for driving long-term financial inclusion and national economic resilience. the integration of digital technologies—such as mobile banking, biometric authentication, artificial intelligence, and blockchain—is reshaping the landscape of banking service delivery, offering unprecedented convenience, security, and operational efficiency. by embracing these innovations, banks can provide 24/7 service availability, minimize operational risks, and meet the expectations of a digitally-savvy customer base. furthermore, the collaboration between commercial banks and non-bank financial institutions, alongside the support of state-led financial inclusion initiatives, plays a critical role in extending the reach of financial services to remote and rural areas. the introduction of islamic financial services represents a culturally sensitive innovation that can engage new customer segments and stimulate investment. additionally, the ongoing importance of traditional services—such as cash handling and currency exchange—must not be underestimated, especially in a context where a significant portion of the population still relies on physical transactions. the balance between digital transformation and foundational banking functions ensures a holistic service model. finally, robust financial monitoring and post-sale customer engagement remain central to the longterm success of the banking sector. these practices not only ensure regulatory compliance and risk mitigation but also enhance consumer trust and loyalty. as uzbekistan continues to modernize its banking infrastructure, the combination of innovative practices, customer-centric strategies, and institutional collaboration will be crucial in promoting sustainable economic growth and a financially inclusive society. american journal of business management, economics and banking volume 37 june2025 p a g e | 29 www.americanjournal.org references: 1. decree of the president of the republic of uzbekistan no. pf-158 dated september 11, 2023, “on the uzbekistan-2030 strategy.” 2. statistical bulletin of the central bank of the republic of uzbekistan. tashkent, 2024. 3. mckinsey & company. (2023). the future of retail banking: shaping the transformation. mckinsey & company. 4. boymakhmadov a. x. (2023). specific features of commercial banks' retail services in the context of the digital economy. 5. mamadiyarov, z. (2024). comparative analysis of digital banking adoption in central asia: opportunities and barriers. international multi-disciplinary journal of education.. 6. kpmg. (2021). global banking insights: the future of retail banking in a digital era. kpmg international. 7. uzbekistan ministry of finance. (2023). annual review of financial sector development. tashkent. 8. tojinorova, b. (2024). the importance of information technologies in the financial and banking sector in uzbekistan. ekonomika i sotsium (economics and society). american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 127 www.americanjournal.org the role of islamic finance organizations in the development of economic sectors in uzbekistan sattarova dilfuza dilshodbekovna, senior lecturer of “economy” faculty of ma’mun university e-mail: sattarovadilfuza1725@gmail.com a b s t r a c t k e y w o r d s the article reflects the content of islamic finance, the areas of activity of islamic finance organizations, and the possibilities of increasing the efficiency of economic sectors through the development of islamic finance in uzbekistan. islamic finance, idb, financing methods, swot analysis, “uzbekistan 2030” strategy. introduction in recent years, interest in islamic finance products has significantly increased in new uzbekistan, which is why scientific research is being conducted in this area. the adopted strategy "uzbekistan 2030" sets a number of tasks to accelerate reforms in the banking system, increase the size of the banking services market, and develop competition in the sector. in particular, goal 50 of the strategy sets forth the following: to increase the annual lending volume in the banking and financial system to $40 billion, to increase bank deposits by 4 times, to privatize banks and retain 3-4 banks under state control, to attract at least 4 large, reputable foreign banks to the banking market, to improve the standards and control framework by introducing internationally recognized minimum standards and requirements for banks, to introduce islamic finance criteria and procedures in at least 3 commercial banks, and to form the legal framework for islamic finance [1]. before integrating this system into the current banking and financial system in the country, a comprehensive assessment of its impact on the well-being of the population and business development is required . material and methods the article uses scientific abstraction, induction and deduction, and economic analysis methods such as factor analysis, comparative analysis, swot analysis. “islamic banking and finance” is an important component of islamic economics or the islamic economic system, which primarily represents the relationship between financial institutions and customers. the concept of “islamic economics” entered the economic system in the middle of the last century. american journal of business management, economics and banking volume 36 may2025 p a g e | 128 www.americanjournal.org the problems of islamic economics and finance have been studied in the works of foreign scholars abu yusuf, a. mirakhor, h. ahmad, m. iqbal, t. usman, m. qaradogyi[2]. among the scientists from the cis countries, lr syukiyainen, vv pavlov, a.yu. zhuravlev, e.n. miroshnik, ri bekkin, aa kazakov, rr vakhitov, bf mulyukov, am chumakova and others[3] conducted research on islamic economics, islamic financial law, the activities of islamic banks, and islamic financial products. russian researcher a. zhuravlyov describes islamic economics as "a system of muslim views on the mechanisms and principles of organizing the economic activities of society ," while r. beckin describes it as "an economic system that complies with the principles and norms of muslim jurisprudence." uzbek researcher j.imomnazarov defines islamic economics as “ islamic economics – the production, exchange, and distribution of material and intangible goods (including services) and consumption to do islam religion based on the requirements " implementation "[4]. results and discussion islamic financing in the republic of uzbekistan there is no separate legislation on islamic development bank and projects financed in our country by the islamic corporation for private sector development it is implemented in accordance with the resolution of the cabinet of ministers of the republic of uzbekistan no. 371 dated august 27, 2003 “on the membership of the republic of uzbekistan in the islamic development bank” and the resolution of the republic of uzbekistan no. 371 dated december 21, 2004 “on the membership of the republic of uzbekistan in the islamic corporation for the development of the private sector”. according to them, the government of uzbekistan adopted the articles of agreement on the establishment of the idb and the icsd. currently, the bank offers the following financing options to its customers: – murabaha; – mushoraka; – ijara; – financing lines based on murabaha. these financing methods use contracts provided by the islamic development bank or the islamic development bank of uzbekistan. this financing is aimed at legal entities, and there are no islamic financing services and products for individuals in uzbekistan, nor are there any islamic products and services offered to legal entities, other than the products and services mentioned above, such as islamic insurance or deposits, etc. a swot analysis of the development of islamic finance in uzbekistan is presented, which examines the strengths and weaknesses, opportunities and threats to the development of the sector (figure 1). american journal of business management, economics and banking volume 36 may2025 p a g e | 129 www.americanjournal.org figure 1. swot analysis of the development of islamic finance in uzbekistan strengths opportunities – support from the head of state – to finance the economy of uzbekistan – idb from the group additional funds attraction to do – targeted use of loan funds and effective use – islamic banks in the world the absence of bankruptcy and the mechanisms stability – in the republic of uzbekistan 2018 "active entrepreneurship, innovative ideas and technologies "year of support" to be declared – sources of financing, especially for small and mediumsized businesses diversification – real production in uzbekistan encouragement – middle east and s. east asia investment from countries funds raised in case economy of uzbekistan direct benefits for – islamic financing successfully implementing secular uzbekistan as a state rise in prestige – adequately covered by traditional financing availability of a financing market (small and medium-sized businesses, agricultural sector) – the main population of uzbekistan since a large part of them are muslims, they are not allowed to use these financial products. expectation of stable demand – islamic finance principles help reduce social inequality and strengthen social justice access to financial services will expand due to the emergence of alternative financial products – increasing support from western countries for the development of this industry – expansion of the platform for providing services and positive acceptance of the network rebranding process – the opportunity to introduce tools and methods that are successfully applied worldwide within the country's public and private corporate sectors in order to reduce the burden of usurious debt and financially strengthen enterprises that can become the basis of the country's system weaknesses threats – the lack of flexibility and adaptation of local tax and banking legislation to the nature of islamic financing – lack of experienced staff working with islamic products – low financial awareness: lack of awareness of the population and businesses about islamic financing products and other standards – dependence of subsidiary islamic financial institutions on the activities of central institutions – diversity of sects in muslim countries – the complexity of borrowing from an islamic bank. islamic financial products are based on the principle of profit and loss sharing, which requires documentary transparency and a thorough analysis of the borrower's solvency – lack of confidence among the population in completely new financial products – lack of consistency in current legislation – serious problems with the taxation of islamic financial products – lack of general access to these services. – risk of fraud. the emergence of a fake islamic finance institution will lead to a loss of public confidence in islamic finance in general – islamophobia. there are various misconceptions about the industry's links to terrorism and extremist organizations. – mentality and cultural differences (lack of acceptance of islamic principles at the consumer level) – risk of competition from mutual insurance societies and microfinance institutions offering traditional financial services – the lack of a realistic investment climate in the eyes of large islamic investors, and the unwillingness to officially recognize the existing facts – not enough attention is being paid to the active implementation of these services. – resistance from private shareholders of local commercial banks due to misunderstanding. source:author’s development islamic finance is a new direction for the uzbek economy, and there is a need for it from both the business and the population. the emergence of alternative financing products will help expand the population's access to financial services. american journal of business management, economics and banking volume 36 may2025 p a g e | 130 www.americanjournal.org however, existing expectations can be seriously distorted due to the lack of experience and knowledge of potential clients in the field of islamic finance, as well as insufficiently developed banking and financial legislation. there are also risks associated with regulating islamic financial products in the context of the lack of uniform interpretation of sharia norms in muslim countries and the lack of qualified specialists in the field of islamic finance. the islamic development bank plays a significant role in the development of islamic finance in uzbekistan. uzbekistan joined the idb in september 2003 during the bank's annual meeting in almaty. in 2004, uzbekistan became a member of the islamic corporation for the development of the private sector. the idb representative office in uzbekistan began its activities in tashkent in october 2006. currently, uzbekistan is considering joining two other organizations within the idb group. these are the islamic corporation for investment and export credit insurance (iciec) and the international islamic trade finance corporation (itfc). the amount of projects approved by the islamic development bank group for uzbekistan is more than 2.1 billion us dollars, of which 304 million us dollars are allocated to the islamic development bank group and 1.82 billion us dollars to the idb. in terms of financing methods, the first place is taken by the exception (build on demand), while the second and third places are occupied by murabaha (sale in installments) and ijara (leasing). as can be seen, construction-oriented projects constitute the main part of financing, that is, this includes the reconstruction of irrigation networks, road construction, construction of schools, colleges and other projects. the financing instrument used by the hsrik is mainly murabaha, with more than 70% of it coming from bank financing lines, while the remaining 30% is direct financing. these private sector projects have contributed to the development of various sectors of the economy, in particular, pharmaceuticals, healthcare, construction materials production, textiles, food industry, agriculture and other sectors. taiba leasing, a company established by the crc in 2010 with a charter fund of $5 million, has also been providing its sharia-compliant leasing (rental) services to representatives of the private sector. to date, more than 200 projects have been financed. the main share of projects (45.4%) falls on the construction and construction materials production sector, light industry (14.87%), transport services (4.96%) and food production (4.95%) occupy 2nd, 3rd and 4th places, respectively. the share of the remaining sectors is 29.8% in total and less than 4% individually (table 1). table 1. itbg portfolio for uzbekistan in terms of financing methods financing methods projects number million i. d. million dollars technical support 5 0.8 1.1 credit 3 22.2 32.5 special assistance operations 8 1.4 1.9 installment sale 11 292.4 446.0 exception 12 616.7 909.3 joint financing lines 3 29.4 45.0 capital 1 3.2 5.0 leasing 11 275.7 412.1 trade finance 19 199.6 292.6 total 73 1 441.4 2 145.5 source:author’s development american journal of business management, economics and banking volume 36 may2025 p a g e | 131 www.americanjournal.org looking at the projects approved for financing by the islamic development bank group by sector, the largest investment is in the agriculture and rural development sector, which accounts for almost 30% of the idbg portfolio. it is followed by energy with a share of 25%, followed by transport (16%) and finance (13%). despite being the last cis country to join the idb and the cisrc, uzbekistan is the first in the region in terms of the portfolio of both organizations. accordingly, the corporation was able to finance trade projects before uzbekistan's membership in the organization, and to date, itfc has provided a murabaha financing line to asia alliance bank, trustbank and kapitalbank (table 2.). table 2. idb and hsric financing portfolio for uzbekistan by sector sector project itbg(total) also idb xsric number million id million dollars number million id million dollars number million id million dollars education 12 52.3 78.6 5 51.1 77.0 0 0.0 0.0 finance 17 189.3 279.7 4 29.6 45.1 10 151.8 223.0 health care 9 81.0 118.5 3 53.0 78.3 5 27.8 40.0 industry and mining 9 41.1 61.1 2 13.7 20.0 7 27.4 41.1 information and communication technologies 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 transportation 4 228.6 348.0 4 228.6 348.0 0 0.0 0.0 energy 8 350.0 533.1 8 350.0 533.1 0 0.0 0.0 agriculture 8 436.8 632.6 8 436.8 632.6 0 0.0 0.0 real estate 0.0 0.0 0.0 0.0 0.0 0.0 0 0.0 0.0 water supply, strategy and urban services 2 61.7 92.9 2 61.7 92.9 0 0.0 0.0 others 4 0.7 1.0 4 0.7 1.0 0 0.0 0.0 total 73 1 441.4 2 145.5 40 1 225.5 1 828.0 22 207.0 304.1 source:author’s development "uzbekistan-2030" strategy stipulated the formation of a legal framework and the introduction of procedures for islamic finance in the country [8]. according to the central bank, a draft law on islamic finance has been prepared in uzbekistan, and regulations have been developed. practical work has begun on 1introducing relevant amendments to the current legislation . according to information, 12 banks, in particular agrobank, sanoatqurilishbank, mikrokreditbank, and ipak yuli bank, are providing mubara services through credit lines for private sector development [9]. also, "trust adalat" llc under trustbank provides islamic leasing, that is, leasing and mubaraha loan-based sales transactions, and " hamkorbank " also provides islamic leasing services. 1decree of the president of the republic of uzbekistan no. pf-5992 “on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025”. may 12, 2020 american journal of business management, economics and banking volume 36 may2025 p a g e | 132 www.americanjournal.org to develop small and medium-sized businesses, the silk road bank attracted $2 million in 2006, $5 million in 2010, and $14 million in 2017 from the islamic development corporation. since july 2018, two more banks: trustbank and infinbank, have established financial cooperation with the islamic development corporation. soon, the islamic development corporation signed agreements on sharia-compliant financial issues with six institutions in uzbekistan: kapitalbank, asakabank, turonbank, hamkorbank, uzsanoatqurilishbank, and asia alliance bank. cooperation between uzbekistan and the idb began in 1991 when the bank approved the issue of allocating grants by the idb for the reconstruction of a number of historical monuments, such as the mir-arab madrasah in bukhara and the dar ul-hadis madrasah in the imam al-bukhari memorial complex [9] at the 28th meeting of the itb group held in almaty on september 2-4, 2003, a decision was made to admit the republic of uzbekistan as an equal member of the itb. june 30, 2022, the idb group has approved financing for 116 projects in uzbekistan with a total volume of 2,602.8 million usd, of which 55 (1,077.7 million usd) are already completed projects. 61 projects (1,525.1 million usd ) are currently active ( table 3 )[10]. table 3 the amount of funds allocated by the idb to the republic of uzbekistan, by direction no. route/network name number of projects total allocated funds (in million us dollars) as of 30.06.2022 1 agriculture 9 702.4 2 finance 54 653.5 3 health care 15 413.2 4 transportation 4 348.1 5 energy 5 203.1 6 water, sanitation, urban services 3 93.1 7 education 11 78.4 8 industry/mineral resources extraction 9 59.9 9 other 5 51.0 10 information and communication 1 0.1 total: 116 2,602.8 source: this table was compiled by the author based on information provided by the islamic development bank's office in uzbekistan. as of june 30, 2022, more than $1,790.70 million in financial agreements had been signed and entered into force, and more than $1.3 billion had been disbursed . conclusion as can be seen, uzbekistan's cooperation with islamic financial institutions is mainly carried out by the islamic development bank, its group of financial institutions, and the arab coordination group. american journal of business management, economics and banking volume 36 may2025 p a g e | 133 www.americanjournal.org at the same time, the projects being implemented and planned to be implemented within the framework of this cooperation are aimed at developing infrastructure (these infrastructure projects are determined by the government of uzbekistan and the idb). as for projects related to the private sector, that is, business projects, are currently being implemented only through local banks, through the islamic corporation for the development of the private sector and the international islamic trade finance corporation. this means additional costs for entrepreneurs, since the local bank in the middle is also an institution that organizes financing and, naturally, charges a fee from the client for this. in order to work directly with the private sector, such as the european bank for reconstruction and development and the international finance corporation, that is, to finance business projects using islamic financial products and instruments, certain conditions must be created in the country, and first of all, a legal framework must be developed. however, unfortunately, so far, relevant laws on islamic finance and banking have not been developed in uzbekistan, that is, a legal framework has not been formed. however, amendments to the relevant laws and the adoption of new laws on the implementation of the islamic banking and financial system in uzbekistan would increase cooperation with private islamic banks and other islamic financial institutions, and most importantly, the possibility of attracting investments from them. in particular, it would be possible to finance investment projects of private enterprises through cooperative financial products such as musharaka and muzarab , provide mortgage services to the population by opening exemption lines, finance the purchase of means of production through murabaha or lease products, provide private farms with working capital through salam , and thereby develop agriculture. after all, today the country's commercial banks are sufficiently developed and they have the opportunity to attract financial resources from foreign islamic banks even without state guarantees. in order not to lag behind globalization and innovative changes taking place in the world, it is recommended that the government of uzbekistan develop a roadmap for the development of the islamic finance or partnership-based banking industry. this roadmap should include improving existing legislation (amendments and changes to the legislation on banking, taxation, securities), conducting promotional activities, developing islamic finance infrastructure, developing international cooperation and the public sector, developing the islamic financial services market, conducting scientific and educational work, and working with investors. at the same time, it is advisable to determine the responsible agency and deadlines for each action to be taken. references 1. decree of the president of the republic of uzbekistan no. pf-158 dated 11.09.2023 “on the strategy “uzbekistan — 2030”. https://lex.uz/docs/6600413 2. abu yusuf yaqub ibn ibrahim kufi. book al-kharaj (translated by a. mannapova). // t.: "international islamic academy of uzbekistan" publishing-printing association, 2021, 240 p. \\abbas mirakhor. a note on islamic economics // islamic research and training institute, 2007, 23 p.;\\habib ahmed. a microeconomic model of an islamic bank // islamic research and training institute, 2002, 39 p.; \\munawar iqbal, mabid ali al jarhi. islamic banking: answers to some frequently asked questions // islamic research and training institute, 2001, 81 p.; \\muhammad taqi usmani. an introduction to islamic finance // 1998, 169 p..;\\aliy muhiyiddin al-qaradogiy (translator n. nabijon oglu). lessons on property and transactions in islam // – t.: “uzbekistan international islamic academy” publishing house , 2019, 320 p. https://lex.uz/docs/6600413 american journal of business management, economics and banking volume 36 may2025 p a g e | 134 www.americanjournal.org 3. l.r. sukiyane. mosulmanskoe pravo // voprosy teorii i praktiki , m. 1986, 254 p.; \\ v.v. pavlov. islamskie banki v islamskom finansovom prave . // m. 2003, 256 c .; \\ a. yu. zhuravlev. theory and practice of islamic banking // m.: institut vostokovedeniya ran, 2002.; miroshnik e.n. islamic bank and social and economic structure of the muslim country // autoreferat dissertatsii k.e.n. m., 2000, 24 p.; r.i. beckin. islamic economics: a short course // m. 2008, 288 p. 4. imamnazarov jahongir muhamedovich. improving the theoretical foundations of the development of the economy of uzbekistan using the opportunities of the islamic financial system\\ dissertation\\ tashkent 2023.160 p. 5. decree of the president of the republic of uzbekistan no. pf-158 dated september 11, 2023 “on the strategy “uzbekistan — 2030”. https://lex.uz/docs/6600413 6. decree of the president of the republic of uzbekistan no. pf-5992 “on the strategy for reforming the banking system of the republic of uzbekistan for 2020-2025”. may 12, 2020 7. o.akhmadjonov, a.abdullaev, j.anvarov, s.ismoilov. islamic finance// scientific progress. vol 3. issue 2. 2022y. 45-b 8. https://mft.uz/ru/menu/islam-taraqqiyot-banki-itb 9. isdb group in brief: 1975–2022 2 (q2) https://lex.uz/docs/6600413 https://mft.uz/ru/menu/islom-taraqqiyot-banki-itb american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 37 www.americanjournal.org the theoretical and methodological foundations of cash accounting o‘rolova aziza umid qizi first-year basic doctoral student tashkent state university of economics ummatqulova vazira umid qizi tashkent state university of economics 1st course of master degree a b s t r a c t k e y w o r d s this expanded and enhanced article provides a deep scientific analysis of the theoretical, methodological, and practical foundations of cash accounting in modern enterprises. the study clarifies the conceptual essence of cash flows, evaluates the role of cash management in ensuring financial stability, and examines the integration of national standards with ifrs requirements, especially ias 7. the methodological basis is significantly broadened to include theoretical–conceptual analysis, comparative assessment, regulatory evaluation, and digital transformation research. particular emphasis is placed on the impact of erp systems, aidriven accounting tools, and cloud technologies on the accuracy, speed, and transparency of cash accounting. the results demonstrate that strong documentation, internal control, and automation are key factors strengthening payment discipline and minimizing accounting risks. the article also provides strategic recommendations for modernizing cash accounting systems in uzbekistan, enhancing compliance with international standards, and improving financial decision-making. the study contributes to the advancement of accounting methodology by proposing more integrated and technology-oriented approaches to cash flow management. cash accounting; internal control; liquidity; solvency; accounting policy; cash flow measurement; ifrs; ias 7; documentation; cash discipline; risk management; digital accounting; erp systems; financial reporting; transparency. introduction in the context of global economic transformation and increasing competition, the correct organization of cash accounting has become a decisive factor in maintaining financial stability and operational continuity of enterprises. cash serves as the most liquid financial resource, enabling timely settlements, fulfillment of contractual obligations, procurement of resources, and investment in strategic american journal of business management, economics and banking volume 43 december2025 p a g e | 38 www.americanjournal.org development projects. therefore, the role of cash accounting goes far beyond basic record-keeping; it is a critical management tool that supports liquidity assessment, solvency analysis, and strategic financial planning. despite advancements in accounting frameworks, many enterprises continue to face difficulties related to documentation, internal control, inaccurate classification of cash flows, and insufficient alignment with international standards. globalization and digitalization introduce additional challenges by demanding higher transparency, automation, and real-time financial monitoring. ifrs, particularly ias 7, offers internationally recognized cash flow reporting requirements, which uzbekistan is actively implementing through national reforms. as enterprises transition toward these new standards, the scientific study of theoretical and methodological foundations of cash accounting becomes increasingly important to ensure effective and reliable financial reporting. methods the methodological basis of this expanded study consists of a set of systematic scientific approaches aimed at providing a comprehensive understanding of cash accounting principles, challenges, and applications. 1. theoretical–conceptual analysis: this method explores the fundamental economic nature of cash, its classification, and its role in accounting systems. the analysis covers core principles such as prudence, reliability, and double-entry accounting as part of the conceptual framework of ifrs. 2. comparative analysis: significant attention is given to comparing uzbekistan’s national accounting standards with international requirements, specifically ias 7. differences in terminology, structure of reporting, and classification rules are examined to determine areas requiring further harmonization. 3. normative–legal analysis: cash operations are heavily regulated; therefore, the study evaluates how the accounting law, central bank regulations, and national standards influence cash discipline and reporting procedures. 4. practical accounting analysis: real-world accounting practices are explored through the review of enterprise-level documents such as cash orders, bank statements, payment registers, and account reconciliation reports. 5. digital systems assessment: modern accounting systems like sap, 1c, oracle erp, and microsoft dynamics are analyzed in terms of automation, error reduction, and integration capabilities. 6. internal control evaluation: a detailed assessment is conducted on internal control mechanisms, focusing on authorization procedures, segregation of duties, and internal audit methods that ensure financial security. results the results of this comprehensive analysis demonstrate several key findings that highlight the scientific and practical importance of cash accounting: 1. cash accounting is the foundation for financial stability, enabling precise liquidity measurement and preventing financial disruptions. 2. double-entry accounting remains essential for ensuring the accuracy and reliability of financial data. 3. proper documentation significantly increases transparency and reduces the risks of errors, fraud, and financial misreporting. enterprises with strong documentation practices show more stable financial performance. american journal of business management, economics and banking volume 43 december2025 p a g e | 39 www.americanjournal.org 4. cash flow statements provide deeper analytical insights by distinguishing operational, investment, and financing activities, making financial results more informative. 5. digital technologies drastically improve accuracy and speed. automated systems allow real-time monitoring and analytical forecasting. 6. national accounting standards in uzbekistan increasingly harmonize with ifrs, yet classification differences still require additional refinement. 7. effective internal control fundamentally reduces financial risks through segregation of duties, authorization protocols, and systematic audits. discussion the discussion highlights that cash accounting is not only a technical function but a strategic component of enterprise management. the quality of cash accounting determines the organization's ability to withstand economic fluctuations, maintain liquidity, and ensure sustainable development. documentation remains a crucial safeguard for ensuring transparency and accountability. a properly organized documentation system ensures that every cash transaction is authorized, traceable, and verifiable. the digital transformation of accounting significantly enhances the efficiency of cash operations. erp systems and ai-powered tools contribute to automated reconciliation, anomaly detection, and predictive analysis, thereby reducing human error and improving financial decision-making. however, the study also reveals existing challenges: insufficient ifrs integration, low qualification levels among some accounting personnel, outdated documentation processes, and cyber risks associated with digitalization. overall, the findings emphasize that enterprises must modernize their cash accounting systems to remain competitive in a rapidly changing environment. conclusion this comprehensive research confirms that the theoretical and methodological foundations of cash accounting are essential for strengthening financial management and improving enterprise performance. accurate recording of cash flows enhances payment discipline, supports effective liquidity management, and ensures transparency in financial reporting. integrating international standards, improving documentation, and adopting digital technologies significantly increase the reliability and efficiency of cash accounting systems. strengthening internal control mechanisms further contributes to financial security and minimizes operational risks. therefore, cash accounting must be regarded as a strategic function that contributes directly to enterprise stability, competitiveness, and long-term success. references 1. law of the republic of uzbekistan “on accounting.” national database of legislation, 2020. 2. presidential decree no. pf–5953, 2020. 3. national accounting standards (bhms), 2023. 4. ias 7 – statement of cash flows. iasb, 2023. 5. ifrs conceptual framework, 2022. 6. karimov a.a. theory of financial accounting. 2022. american journal of business management, economics and banking volume 43 december2025 p a g e | 40 www.americanjournal.org 7. abdullayev b.b. accounting and financial analysis. 2021. 8. rasulov o., khudoyqulov sh. accounting and audit. 2020. 9. sheraliyeva m. financial statement analysis. 2023. 10. smith j. modern financial accounting. 2020. 11. horngren c.t., harrison w.t., oliver m.s. accounting, 12th ed., 2021. 12. drury c. management and cost accounting. 2022. 13. sheremet a.d., suyts v.p. accounting and analysis. 2021. 14. kovalev v.v. financial analysis. 2022. 15. yuldasheva d. cash flow management mechanisms. 2023. 16. mamatqulova z. digitalization of accounting. 2024. 17. oecd. corporate transparency. 2023. 18. ministry of finance of uzbekistan. cash flow reporting guide. 2022. 19. world bank. public financial management strategy 2022–2026. 20. un escap. digital transformation in asia-pacific. 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 104 www.americanjournal.org comprehensive analysis of factors influencing the attractiveness of the investment climate rakhmanov sharof diyorovich independent researcher tashkent state university of economics e-mail: sh.rakhmanov@tashkent.uz a b s t r a c t k e y w o r d s the article reveals the relevance and importance of investment risk assessment and management mechanisms in the digital economy, conducts a comprehensive analysis of factors affecting the attractiveness of the investment environment, analyzes the attractiveness of the investment environment: the experiences of developed countries, and provides conclusions and proposals for increasing the attractiveness of the investment environment in our country. investment climate, investment attractiveness, investment risks, financial stability, institutional factors, political stability, economic freedom, level of corruption, inflation rate, interest rates, infrastructure development. introduction the attractiveness of the investment climate is one of the most important points of support for the economic development of countries. in the context of modern globalization, competition for attracting investments among the countries of the world is intensifying. this necessitates a comprehensive and comprehensive analysis of all factors influencing the investment climate. the relevance and significance of this topic are of great importance not only theoretically, but also practically. the fundamental changes taking place in the world economy, the consequences of the global pandemic, the volatility of the geopolitical situation, and the processes of digital transformation have a serious impact on the mechanism for making investment decisions. these factors indicate the need for a comprehensive study of not only traditional economic indicators, but also institutional, legal, environmental, and social factors to ensure the attractiveness of the investment environment. modern scientific research on the attractiveness of the investment environment shows that the economic growth and sustainable development of countries directly depend on the volume, quality, and effectiveness of investments. in particular, according to the world bank and the international monetary fund, countries with high investment attractiveness are not only more resilient to economic crises, but also have faster recovery and adaptation potential[1]. this makes increasing the attractiveness of the investment climate one of the priorities of state policy. foreign direct investment provides countries not only with additional financial resources, but also with american journal of business management, economics and banking volume 35 april 2025 p a g e | 105 www.americanjournal.org opportunities for advanced technologies, innovative management experience, integration into the global value chain, and access to new markets. according to unctad, the global inflow of foreign direct investment has changed significantly over the past decade, with the share of developing economies increasing, and this trend is expected to continue in the future[2]. therefore, each country strives to develop consistent and long-term strategies to increase its investment attractiveness. literature review in the process of analyzing the literature on the topic, a number of leading economists and specialists of the world have conducted scientific research on the analysis of factors influencing the attractiveness of the investment environment. among them, john dunning, through his “eclectic paradigm” (oli paradigm), states that investment decisions depend on three main factors: ownership advantages, location advantages, and internalization advantages. he believes that a country's investment attractiveness is largely due to “location advantages” which include factors such as natural resources, infrastructure, institutional environment, and labor resources. in his theory of “national competitive advantage”, michael porter, through the diamond model, identifies four determinants of the attractiveness of the investment environment: factors of production, conditions of demand, related industries, and firm strategy. porter emphasizes the need for a comprehensive development of these four determinants to increase the investment attractiveness of countries[4]. daron acemoglu emphasizes the importance of institutional factors in the attractiveness of the investment climate. in his opinion, “inclusive institutions” are necessary to increase the country's investment attractiveness. this includes the protection of property rights, the rule of law, and the creation of a transparent governance system[5]. laura alfaro showed that the impact of fdi on economic development depends on the level of development of the country's financial markets. in his opinion, to increase the attractiveness of the investment climate, it is important to develop financial markets, strengthen the banking system, and ensure macroeconomic stability[6]. simeon djankov, founder of the “doing business” report, sees the ease of doing business as an important indicator of the attractiveness of the investment climate. he believes that by reducing administrative barriers and simplifying bureaucratic processes, countries can significantly increase their investment attractiveness[7]. raghuram rajan studied the influence of the financial system and institutional quality on the attractiveness of the investment environment. in his opinion, the level of development of financial markets and the effectiveness of financial institutions are important factors determining the attractiveness of the investment environment. he also emphasizes the importance of finding the optimal level of regulation of the financial sector[8]. research methodology economic research methods such as analysis of research conducted by world scientists on the analysis of factors influencing the attractiveness of the investment environment, collection of all data on the topic, comparison, and logical thinking were used. american journal of business management, economics and banking volume 35 april 2025 p a g e | 106 www.americanjournal.org analysis and discussion of the results. various international ratings play an important role in assessing the attractiveness of the investment climate, including the “doing business” prepared by the world bank, the “global competitiveness index” published by the world economic forum, the “economic freedom index” published by the heritage foundation, and other indicators. these ratings serve as the main guide for investors in decision-making and have a significant impact on the formation of the country's investment image. to achieve high rankings, countries are forced to constantly improve their investment climate. systemic reforms to improve the investment climate in our country, in particular, measures to improve the tax system, reduce administrative barriers to doing business, strengthen legal guarantees, and simplify bureaucratic processes, are aimed at increasing investment attractiveness. according to the state statistics committee, the volume of foreign direct investment attracted to our country in recent years has a stable growth trend, which indicates the effectiveness of the reforms. the rapid development of the digital economy places new demands on the investment climate. technological infrastructure, the innovation ecosystem, the level of cybersecurity, digital skills, and mechanisms for protecting intellectual property rights are becoming important factors determining investment attractiveness. according to research by nielsen and mckinsey, the direction, structure, and effectiveness criteria of investments are changing significantly in the process of digital transformation. this requires the adaptation of investment policy to the requirements of the digital economy[9]. one of the important factors influencing the attractiveness of the investment climate is macroeconomic stability. the level of inflation, the stability of the exchange rate, the volume of public debt, the budget deficit, and the balance of payments are carefully studied by investors. according to the imf, countries that have ensured macroeconomic stability have a significant advantage in attracting investments[11]. therefore, the effectiveness of macroeconomic policy in increasing the attractiveness of the investment environment is of particular importance. table 1 comprehensive analysis of factors influencing the attractiveness of the investment climate no factor group influencing factors direction of influence degree of influence (1-5) nature of influence 1. political and legal factors political stability positive 5. increases investor confidence improvement of the legislative framework positive 4. reduces legal risks consistency of state policy positive 4. long-term investment planning 2. economic factors macroeconomic stability positive 5. reduces investment risk inflation rate negative 3. reduces investment profitability tax and customs policy variable 4. significantly influences investors' decisions exchange rate stability positive 4. reduces currency risk 3. sociodemographic factors population income level positive 4. expands market size availability and qualifications of labor resources positive 5. increases investment efficiency population growth rate positive 3. increases domestic demand 4. infrastructure state of transport and logistics positive 5. accelerates product delivery american journal of business management, economics and banking volume 35 april 2025 p a g e | 107 www.americanjournal.org factors infrastructure level of energy supply and communications positive 5. increases production efficiency development of financial and banking infrastructure positive 4. facilitates access to financial resources 5. institutional factors bureaucratic obstacles in the investment process negative 4. slow down the investment process mechanisms of state support for investors positive 5. encourages investment level of corruption negative 5. reduces investment attractiveness 6. environmental factors environmental protection requirements and standards positive/negative 3. increases costs but ensures long-term sustainability availability of natural resources positive 4. forms a resource base note: influence level scale (1-5): 1 very low, 5 very high. based on this table, it is possible to assess the overall attractiveness of the investment environment and develop strategies for its improvement. according to the results of the above comprehensive analysis, the factors most strongly influencing the attractiveness of the investment climate are political stability, macroeconomic stability, labor skills, infrastructure development, and the effectiveness of institutional support mechanisms. at the same time, there are negative factors such as bureaucratic barriers, corruption, and inflation, which can negatively affect investor decisions. therefore, to improve the investment climate, it is necessary to continue political and economic reforms aimed at minimizing negative factors by government bodies, creating a favorable legal environment for investors, and expanding infrastructure capabilities. this, in turn, will increase the volume of investments and accelerate economic development. the legal and institutional environment is another important factor influencing investment attractiveness. the stability of the legislative framework, the protection of property rights, the execution of contracts, the independence of the judicial system, and the level of corruption are important criteria for investors. as dunning and lundan note, the quality of the institutional environment is one of the main indicators in assessing the level of risk of investors. therefore, legal and institutional reforms are of great importance for increasing investment attractiveness. the quality of human capital and the state of the labor market are also among the important factors determining the attractiveness of the investment environment. the qualifications of the workforce, the quality of the education system, the level of remuneration, and the flexibility of labor legislation are carefully studied by investors. as porter noted, the competitive advantage of countries largely depends on the quality of human capital. therefore, measures to improve the education system and modernize the labor market are of great importance for increasing investment attractiveness. the quality of infrastructure is also one of the important factors affecting the attractiveness of the investment climate. the level of development of transport, energy, telecommunications, and social infrastructure determines the effectiveness of investments. according to schwab, infrastructure quality is one of the main factors determining a country's competitiveness. therefore, the development and modernization of infrastructure facilities are of great importance for increasing investment attractiveness. tax policy also has a significant impact on the attractiveness of the investment climate. the level of tax rates, tax incentives, the effectiveness of tax administration, and the stability of the tax system are american journal of business management, economics and banking volume 35 april 2025 p a g e | 108 www.americanjournal.org important indicators for investors. according to the world bank group, an effective and transparent tax policy plays an important role in increasing investment attractiveness. therefore, improving the tax system is of great importance for increasing investment attractiveness. in the context of modern globalization, environmental and social factors are also becoming one of the important factors influencing the attractiveness of the investment environment. the growing trend of investing according to esg (environmental, social, governance) criteria encourages countries to pay more attention to environmental and social issues in their investment policy. this requires a comprehensive approach to assessing the attractiveness of the investment climate. a comprehensive analysis of the factors influencing the attractiveness of the investment climate has not only theoretical, but also practical significance. the conclusions and recommendations developed as a result of this analysis serve as an important basis for the formation of an effective investment policy for government bodies and the adoption of investment decisions for private sector entities. such a comprehensive approach makes it possible to develop targeted and effective strategies for improving the investment climate. table 2 attractiveness of the investment climate: experience of developed countries country key attractive factors measures taken results usa strong legal system innovative ecosystem large domestic market start-up accelerators r&d financing through darpa patent system global innovation leadership $380 billion fdi in 2023 singapore strategic location absence of corruption tax benefits "single window" system tax preferences smart nation program $21,000 per capita fdi global logistics center germany highly skilled workforce industrial infrastructure “industrie 4.0” strategy dual education system fraunhofer institutes high-tech production in 2023 $70 billion fdi south korea high technological potential export-oriented policy chaebols support allocating 3% of gdp to r&d hi-tech export leader r&d spending 4,8% of gdp switzerland political stability intellectual property protection corporate tax optimization patent box mode leader of the global innovation index center for pharma and biotechnology great britain international financial centre developed legal system catapult centers r&d tax credits global fintech center $60 billion fdi in 2023 japan high technological potential strong infrastructure society 5.0 strategy regional innovation clusters robotics & automation leader leader in the number of patents developed countries use a comprehensive approach to ensuring the attractiveness of the investment climate. as can be seen from the table, in such countries as the usa, singapore, germany, and south korea, the main focus is on a strong legal system, an innovative ecosystem, tax benefits, and a system for training highly qualified personnel. these countries have ensured investment attractiveness by creating start-up accelerators, financing r&d activities, implementing a “single window” system, and developing innovative strategies. as a result, they have achieved global innovation leadership, a high volume of foreign investment, and the development of high-tech production. the experience of developed countries shows that to increase the attractiveness of the investment environment, it is important to strengthen cooperation between the state and the private sector, ensure the integration of education and production, improve the system of protection of intellectual property rights, and introduce digital technologies. these experiences can serve as a valuable basis for american journal of business management, economics and banking volume 35 april 2025 p a g e | 109 www.americanjournal.org developing countries in forming policies to increase investment attractiveness, but each country must adapt these experiences to its own conditions, taking into account its economic, social, and political characteristics. to improve the comprehensive analysis of factors influencing the attractiveness of the investment climate in uzbekistan, it is necessary to implement the following measures: strengthening the mechanisms for protecting property rights; modernization of the banking system, stimulation of competition of private banks; improvement of the system of targeted tax benefits aimed at strategic sectors; modernization of transport and logistics infrastructure; development of digital infrastructure, expansion of internet speed and coverage; improvement of mechanisms for constant communication with foreign investors; development of electronic payment systems and digital financial services; support for investment projects based on the principles of sustainable development; development of a strategy for promoting investment potential; implementation of a set of measures to improve the country's image for investors; stimulation of “green” investments. the implementation of these proposals will significantly increase the attractiveness of the investment climate in uzbekistan, increase the volume of foreign investments, and improve the country's international competitiveness. references: 1. world bank. (2023). “global investment competitiveness report 2022-2023”. washington, dc: world bank group. 2. unctad. (2024). “world investment report 2024: investment trends and policy implications”. geneva: united nations. 3. dunning, j. h. (2001). “the eclectic (oli) paradigm of international production: past, present and future”. international journal of the economics of business, 8 (2), 173-190. 4. porter, m. e. (1990). “the competitive advantage of nations”. harvard business review. pp. 68 (2), 73-93. 5. acemoglu, d., & robinson, j. a. (2012). “why nations fail: the origins of power, prosperity, and poverty”. crown publishing group. 6. alfaro, l., chanda, a., kalemli-ozcan, s., & sayek, s. (2004). “fdi and economic growth: the role of local financial markets”. journal of international economics, vol. 7. djankov, s., la porta, r., lopez-de-silanes, f., & shleifer, a. (2002). “the regulation of entry”. quarterly journal of economics, vol. 8. rajan, r. g., & zingales, l. (2003). “the great reversals: the politics of financial development in the twentieth century” journal of financial economics, 69 (1), 5-50. 9. nielsen, p., & mckinsey, g. (2023). “digital investment trends in emerging markets”. journal of international business studies. 10. world economic forum. (2024). “the global competitiveness report 2023-2024”. geneva: wef. 11. imf. (2023). “world economic outlook: navigating global headwinds”. washington, dc: international monetary fund. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 97 www.americanjournal.org the role of accelerators and incubators in financing innovative startups aminov farrukh farkhadovich independent researcher tashkent state university of economics email: aminov1982@gmail.com a b s t r a c t k e y w o r d s the article studies the views of leading world scientists on the role of accelerators and incubators in financing innovative startups, analyzes the activities of accelerators and incubators in our country, and conducts a comparative analysis of the financing mechanisms used by accelerators and incubators in uzbekistan and abroad, develops substantiated conclusions and proposals on the role of accelerators and incubators in financing innovative startups, and provides recommendations for their application in our country. innovative startups, financing mechanisms, business accelerators, business incubators, venture capital, innovation ecosystem, startup ecosystem, seed financing, financial support. introduction in the path of innovative development of the modern economy, digital transformation and the creation of innovative business projects are becoming increasingly important. in this regard, it is innovative startups that deserve special attention as a new source of economic growth, an essential factor in creating employment, and an effective means of ensuring competitiveness [1]. at a time when creating conditions for the development of innovative entrepreneurship in our country has become one of the priorities of state policy, the issue of improving startup financing mechanisms is extremely urgent [2]. in addition to traditional bank loans, modern financing mechanisms are also necessary to meet the financial needs of innovative startups. accelerators and business incubators occupy a special place as institutions that provide not only financial support but also comprehensive assistance in the initial stages of startup development, such as mentoring, education, business contacts, and infrastructure [3]. the effective activities of these institutions largely affect the successful formation of an innovative ecosystem [4]. international experience shows that accelerators and business incubators are one of the most effective tools for developing innovative projects. for example, famous accelerators in silicon valley such as y combinator, techstars, and 500 startups have contributed to the global success of thousands of startups [5]. although certain steps have been taken in this direction in uzbekistan in recent years, it should be recognized that these processes are still in their early stages of development [6]. american journal of business management, economics and banking volume 35 april 2025 p a g e | 98 www.americanjournal.org the role of accelerators and incubators in financing innovative startups has become even more relevant, especially during the covid-19 pandemic. in the context of the pandemic, the digital transformation of the economy has accelerated, and the demand for startups offering digital products and services has increased sharply[7]. however, in the context of limited financial resources, effective mechanisms have become necessary to direct funds to the most promising projects[8]. in modern conditions, accelerators and incubators are reaching a new level. they are becoming platforms that not only support startups, but also unite large corporations, research centers, and investors[9]. this makes it possible to accelerate the process of commercialization of innovative projects and make effective investment decisions. in this context, the issue of improving the financing mechanisms of these institutions is of particular importance[10]. in the process of analyzing the literature on the topic, several leading economists and experts from around the world have conducted scientific research on the role of accelerators and incubators in financing innovative startups. among them, cohen and hochberg (2014) defined accelerators as “programs that provide short-term, cohort-based training and mentoring support to startups, usually culminating in a certain amount of investment.” they considered accelerators as a mechanism for accelerating the development of startups, unlike business incubators [11]. bruneel et al. (2012) studied the evolution of business incubators and proposed a classification of their generations. they noted that the activities of incubators have not only financial but also knowledge exchange and networking functions [12]. pauwels and colleagues (2016) examined the new generation of accelerator models and divided them into three main groups: ecosystem-driven, investment-driven, and corporate accelerators. the researchers showed that each of these models has its unique financing mechanisms [13]. clarysse and wright (2015) analyzed the role of accelerators in startup financing and saw them more as “mechanisms that act as gateways for startups to enter the ecosystem and increase their access to venture capital” [14]. hausberg and correck (2020) studied the economic efficiency of accelerators and incubators and found that they significantly increase the viability of startups, but the results depend on regional and industry characteristics [15]. hathaway (2016) statistically substantiated that startups participating in accelerator programs are more likely to attract initial investment and have a higher survival rate [16]. battistella et al. (2017) proposed the concept of “open accelerators”, emphasizing that this model acts as a bridge between corporate innovation and startups. in their opinion, such a model has a positive impact on the financial sustainability of startups [17]. mian et al. (2016) analyzed technological business incubation and showed that the institutional framework of incubators and accelerators in different countries differs significantly. this also affects their financing mechanisms [18]. brown and mason (2017) studied entrepreneurial ecosystems and showed that the success of accelerators and incubators largely depends on the innovative capacity and institutional environment of the region [19]. radojevich-kelley and hoffman (2012) emphasized that close cooperation with private investors, business angels, and venture funds is essential for the successful operation of accelerators [20]. lall et al. (2020) studied the operation of accelerators and incubators in developing countries and substantiated the importance of government support and the need to introduce effective public-private american journal of business management, economics and banking volume 35 april 2025 p a g e | 99 www.americanjournal.org partnership mechanisms [21]. isenberg (2010) analyzed the role of the state in the development of the innovation ecosystem and emphasized the need for a comprehensive approach to supporting accelerators and incubators [22]. kuckertz et al. (2020) studied the impact of the covid-19 pandemic on startups and justified the need to introduce new financing mechanisms for accelerators and incubators in times of crisis [23]. block et al. (2021) emphasized the importance of cooperation between state programs, accelerators, and incubators in financing startups during a pandemic [24]. kholmirzayev and ismoilov (2020) analyzed the experience of developing innovation infrastructure in uzbekistan and emphasized the importance of accelerators and incubators for forming a national innovation ecosystem [25]. rasulev and islamov (2021) analyzed the innovation development strategy of uzbekistan and substantiated the need to improve the institutional environment in financing startups [26]. summarizing the views of these scholars, it can be noted that accelerators and incubators play an important role in financing innovative startups. they contribute to the development of startups not only by providing financial support, but also by providing services such as knowledge exchange, networking, and mentoring. however, their effectiveness depends on the institutional environment, state policy, regional characteristics, and industry specifics. in order to increase the role of accelerators and incubators in financing innovative startups in uzbekistan, it is necessary to study international experience, improve financing mechanisms taking into account national characteristics, and develop an innovation ecosystem based on public-private partnerships. research methodology economic research methods were used, such as analyzing research conducted by world scientists on the role of accelerators and incubators in financing innovative startups, collecting all information on the topic, comparing it, and logical thinking. analysis and discussion of results in the global economy of the 21st century, innovative startups are recognized as an important source of economic growth, job creation and competitiveness. however, most startups cannot fully realize their potential due to financing problems. especially in the early stages of development, they face serious obstacles in accessing bank loans and traditional sources of financing. accelerators and incubators are valuable in that they provide innovative projects not only with financial support, but also with comprehensive assistance such as mentoring, business connections, education and infrastructure. they help startups get through the most difficult stage, known as the “valley of death”, and significantly increase their viability. studies show that startups that have passed accelerator programs attract subsequent financing 75% faster, and their survival rate is 1.5-2 times higher than average[27]. in the conditions of uzbekistan, the importance of this topic is increasing, since our country is at the stage of forming an innovative ecosystem. the need to diversify the national economy, increase its competitiveness, and accelerate digital transformation poses the task of improving mechanisms for supporting innovative startups, including the activities of accelerators and incubators. the decree of the president of the republic of uzbekistan no. pf-60 dated january 28, 2022 “on the development strategy of new uzbekistan for 2022-2026” also identifies the formation of an innovative economy american journal of business management, economics and banking volume 35 april 2025 p a g e | 100 www.americanjournal.org and the introduction of digital technologies as one of the priority areas[28]. the importance of financing through accelerators and incubators is that they offer startups a tailored ecosystem compared to traditional sources of financing. in addition to providing financial support, they also provide startups with the opportunity to improve their business model, develop a go-to-market strategy, and establish relationships with potential customers and partners. this, in turn, increases the investment attractiveness of startups and creates the opportunity to attract larger investments at later stages. table 1 analysis of the activities of accelerators and incubators in uzbekistan1 name year of establishment main direction funding type it park accelerator 2019 it startups $5,000-$20,000 average investment inno technopark 2018 industrial innovations grant programs c.a.t. science accelerator 2020 scientific and technical projects grant + mentoring startup factory 2021 digital economy pre-seed investments tsul legal tech incubator 2021 legal technologies mentoring global experience shows that the activities of accelerators and incubators have a significant impact on the development of the innovation ecosystem. these institutions have played a significant role in the success of global innovation centers such as silicon valley, tel aviv, berlin and singapore. they serve not only to develop individual startups, but also the entire ecosystem, to form an innovative culture and improve entrepreneurial skills. it is important for uzbekistan to study this experience and adapt it taking into account national characteristics. the importance of studying the financing mechanisms of accelerators and incubators is also due to the fact that in the current conditions they are rapidly changing and new models are emerging. corporate accelerators, open innovation platforms, virtual accelerators, regional innovation clusters all these are modern forms of financing startups. each of these models has its own characteristics, advantages and disadvantages, and studying the possibilities of their application in the conditions of uzbekistan is an urgent task. table 2 comparative analysis of financing mechanisms used by accelerators and incubators in uzbekistan and abroad 2 financing mechanism application in global practice use in uzbekistan shares in exchange for seed investments widespread (5-15% share) limited convertible debt actively used by accelerators almost not used grant programs in public-private partnerships mainly by the state crowdfunding platforms widespread only now developing corporate partnership financing existing in sustainable ecosystems there are isolated examples royalty-based financing as an alternative mechanism not used 1 innovatsion rivojlanish agentligi 2 muallif tomonidan tayyorlangan. american journal of business management, economics and banking volume 35 april 2025 p a g e | 101 www.americanjournal.org the importance of studying the role of accelerators and incubators in financing innovative startups has increased even more in the context of the pandemic and global economic changes. during the covid19 pandemic, many startups faced serious difficulties, but it was precisely in these conditions that accelerators and incubators allowed many startups to survive and even develop. they continued to support innovative projects through the ability to quickly adapt, switch to a virtual format, and introduce new financing mechanisms. this experience is also valuable for uzbekistan and is important in developing a strategy to ensure the stability of the innovation ecosystem in the face of possible future global crises. to improve the mechanisms for financing innovative startups in uzbekistan, it is necessary, first of all, to analyze the existing legal and regulatory framework, study the organizational and economic foundations of the activities of accelerators and business incubators, and develop the national innovation ecosystem by adapting international experience. in this process, measures to introduce public-private partnership mechanisms, increase investment attractiveness, and stimulate innovative activities are of great importance. conclusions and recommendations another important aspect of the activities of accelerators and incubators is that they facilitate entry into the venture financing market by improving the mechanisms for evaluating and selecting innovative projects. in conditions of limited venture capital, the issue of diversifying financing sources in accordance with the stages of development of startups is also of particular importance. in this context, accelerators and incubators help startups achieve financial stability by preparing them for the next stages of business activity and developing their skills in attracting investment. in the context of the rapid development of the digital economy, improving the mechanisms for financing innovative startups is of not only economic but also social importance. because this ensures the employment of highly qualified specialists, develops entrepreneurial skills among young people, and increases the competitiveness of the country's economy. to increase the role of accelerators and incubators in financing innovative startups in uzbekistan, it is advisable to implement the following measures: introducing tax incentives for angel investors and venture funds; strengthening mechanisms for protecting intellectual property rights; expanding access to international financing platforms for startups; introducing islamic financing instruments; encouraging the participation of large companies in financing innovative projects; developing a startup ecosystem development index; improving the system for maintaining startup financing statistics. the implementation of these proposals will increase the efficiency of financing mechanisms for innovative startups in uzbekistan, develop the national innovation ecosystem, and ultimately serve to increase the competitiveness of the economy. in such conditions, accelerators and incubators, as an effective mechanism for financing innovative startups, will make a significant contribution to the development of innovative entrepreneurship in the country. american journal of business management, economics and banking volume 35 april 2025 p a g e | 102 www.americanjournal.org references: 1. blank, s., & dorf, b. (2020). the startup owner’s manual: the step-by-step guide for building a great company. wiley. 2. decree of the president of the republic of uzbekistan no. pf-60 dated january 28, 2022 "on the development strategy of new uzbekistan for 2022-2026". 3. cohen, s., & hochberg, y. v. (2014). accelerating startups: the seed accelerator phenomenon. journal of business venturing, 29(1), 1-16. 4. hausberg, j. p., & korreck, s. (2020). business incubators and accelerators: a co-citation analysisbased, systematic literature review. the journal of technology transfer, 45, 151-176. 5. hathaway, i. (2016). what startup accelerators really do. harvard business review, 7(1), 85-96. 6. rasulev, a., & islamov, b. (2021). innovation development strategy of uzbekistan: problems and prospects. central asian journal of innovations on tourism management and finance, 2(1), 45-57. 7. oecd (2021). the impact of the covid-19 crisis on the financing of innovative ventures. oecd policy responses to coronavirus (covid-19). 8. kuckertz, a., brändle, l., gaudig, a., hinderer, s., morales reyes, c. a., prochotta, a., & berger, e. s. (2020). startups in times of crisis–a rapid response to the covid-19 pandemic. journal of business venturing insights, 13, e00169. 9. battistella, c., de toni, a. f., & pessot, e. (2017). open accelerators for start-ups success: a case study. european journal of innovation management, 20(1), 80-111. 10. kanbach, d. k., & stubner, s. (2016). corporate accelerators as recent form of startup engagement: the what, the why, and the how. journal of applied business research, 32(6), 1761-1776. 11. cohen, s., & hochberg, y. v. (2014). accelerating startups: the seed accelerator phenomenon. journal of business venturing, 29(1), 1-16. 12. bruneel, j., ratinho, t., clarysse, b., & groen, a. (2012). the evolution of business incubators: comparing demand and supply of business incubation services across different incubator generations. technovation, 32(2), 110-121. 13. pauwels, c., clarysse, b., wright, m., & van hove, j. (2016). understanding a new generation incubation model: the accelerator. technovation, 50, 13-24. 14. clarysse, b., & wright, m. (2015). accelerators: characteristics, business models and performance impact. technology transfer society conference, dublin, ireland. 15. hausberg, j. p., & korreck, s. (2020). business incubators and accelerators: a co-citation analysisbased, systematic literature review. the journal of technology transfer, 45, 151-176. 16. hathaway, i. (2016). what startup accelerators really do. harvard business review, 7(1), 85-96. 17. battistella, c., de toni, a. f., & pessot, e. (2017). open accelerators for start-ups success: a case study. european journal of innovation management, 20(1), 80-111. 18. mian, s., lamine, w., & fayolle, a. (2016). technology business incubation: an overview of the state of knowledge. technovation, 50, 1-12. 19. brown, r., & mason, c. (2017). looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems. small business economics, 49(1), 11-30. 20. radojevich-kelley, n., & hoffman, d. l. (2012). analysis of accelerator companies: an exploratory case study of their programs, processes, and early results. small business institute journal, 8(2), 54-70. 21. lall, s., chen, l. w., & roberts, p. w. (2020). are we accelerating equity investment into impactamerican journal of business management, economics and banking volume 35 april 2025 p a g e | 103 www.americanjournal.org oriented ventures? world development, 131, 104952. 22. isenberg, d. (2010). how to start an entrepreneurial revolution. harvard business review, 88(6), 40-50. 23. kuckertz, a., brändle, l., gaudig, a., hinderer, s., morales reyes, c. a., prochotta, a., & berger, e. s. (2020). startups in times of crisis–a rapid response to the covid-19 pandemic. journal of business venturing insights, 13, e00169. 24. block, j. h., fisch, c., & hirschmann, m. (2021). the determinants of bootstrap financing in crises: evidence from entrepreneurial ventures in the covid-19 pandemic. small business economics, 58, 867-885. 25. xolmirzayev, u., & ismoilov, a. (2020). uzbekistan’s experience in developing innovation infrastructure. economics and innovative technologies, 2020(2), 11. 26. rasulev, a., & islamov, b. (2021). innovation development strategy of uzbekistan: problems and prospects. central asian journal of innovations on tourism management and finance, 2(1), 45-57. 27. hathaway, i. (2016). what startup accelerators really do. harvard business review, 7(1), 85-96. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 18 www.americanjournal.org development of the securities market in uzbekistan: improvement of the regulatory and legal framework and digitalization trends f. muxamedov tsue professor of the "corporate finance and securities" department a. ibodullayev tsue professor of the "corporate finance and securities" department a b s t r a c t k e y w o r d s this article analyzes the development of the securities market in the republic of uzbekistan from 2019 to 2024, the improvement of the regulatory and legal framework, and the process of implementing digital technologies. the 2023 report of the "tashkent" republic stock exchange, regulatory documents on internal control from 2019 and 2021, and the procedure for remote digital identification of clients in 2024 were used to study the transparency, security, and alignment of the market with international standards (fatf, kyc, aml/cft). the results show that the legal infrastructure of the market has been strengthened, digitalization has improved convenience for investors, but liquidity and technological infrastructure constraints remain. based on international experience (india, european union), recommendations for future development were provided. securities market, internal control, digital identification, stock exchange, regulatory and legal framework, aml/cft, kyc, fatf, uzbekistan, digitalization. introduction the securities market in uzbekistan was formed in the legislative framework in the 1990s. based on the presidential decree no. 745 of the republic of uzbekistan on "measures for further deepening economic reforms, protecting private property rights, and promoting entrepreneurship," the "tashkent" republic stock exchange was established on april 8, 1994. its active development began in the second half of the 2010s. according to the 2023 report of the "tashkent" republic stock exchange, the volume of exchange trading showed an upward trend compared to the previous year, confirming the market's growing role in economic activity. the regulatory documents adopted by the republic of uzbekistan, such as the ministry of justice's decree on october 23, 2019, on "amendments and additions to the regulation on internal control of professional participants in the securities market," the june 26, 2021, decision of the ministry of finance and the department for combating economic crimes under the prosecutor general's office of the republic of uzbekistan on "amendments and additions to internal control rules to combat money laundering, terrorism american journal of business management, economics and banking volume 35 april 2025 p a g e | 19 www.americanjournal.org financing, and financing the spread of weapons of mass destruction for professional participants in the securities market," and the cabinet of ministers' decree on april 26, 2024, no. 238 on "approval of the regulation on the remote digital identification of clients in the securities market," have aligned the market's legal infrastructure with international standards. the development of the securities market in foreign experience is often linked to digitalization and strict control mechanisms. the introduction of digital platforms by the national stock exchange of india (nse) since the 2000s resulted in an increase in the number of investors to 30 million (sebi, 2023). in the european union, the mifid ii directive (2018) made internal control and data exchange mandatory to enhance market transparency (european commission, 2018). uzbekistan's recent reforms are similarly focused on creating favorable conditions for investors through a digital identification system and strengthening the fight against the legalization of criminal proceeds. in uzbekistan, several issues have emerged in the development of the securities market, including low financial literacy among investors, limited market liquidity, and insufficiently developed technological infrastructure. the aim of this article is to analyze the current state of the market based on regulatory and legal documents from 2019-2024 and the 2023 activities of the "tashkent" stock exchange, assess the impact of digitalization trends, and examine its development prospects in an international context. the article attempts to reveal the relationship between state policy, legal framework, and practical outcomes, which can serve as a basis for developing new regulations for future research. literature review research on the development of the securities market has been widely studied internationally, with this sector being closely linked to economic growth, financial stability, and global integration. according to international financial institutions, in emerging markets, the securities sector plays a crucial role in attracting capital as an alternative to the banking system (levine, 2005; world bank, 2022). the need for a strong legal framework, internal control mechanisms, and the implementation of modern technologies for the effective functioning of the market is emphasized (iosco, 2020). this research examines the development of the securities market in uzbekistan from both international experience and local context perspectives. there are several important studies in the international literature regarding the regulation of the securities market. the mifid ii directive of the european union (european commission, 2018) became a model for strict regulation of internal control and data exchange to enhance market transparency. fatf (2019) developed standards for combating money laundering (aml) and countering the financing of terrorism (cft), which are recognized as global benchmarks in ensuring the security of the securities market. india's experience is particularly noteworthy: the introduction of digital platforms at the national stock exchange (nse) increased the number of investors to 30 million and boosted trading volume (sebi, 2023). these experiences will serve as an important guide for uzbekistan among emerging countries. the 2023 report of the "tashkent" republican stock exchange is an important source reflecting market activity, covering aspects such as trading results, growth in the stock and bond markets, and international cooperation. in the international literature, the positive results of digitalization are emphasized by allen et al. (2021), who highlight that digital technologies reduce transaction costs and increase the number of market participants. uzbekistan's experience provides an opportunity to test these global trends in local conditions. american journal of business management, economics and banking volume 35 april 2025 p a g e | 20 www.americanjournal.org the literature review shows that the legal framework and digitalization are interconnected factors of significant importance for the development of the securities market. based on the regulatory documents from 2019-2024 and the 2023 activities of the "tashkent" stock exchange, this analysis examines the specific aspects of market development in both the local and international contexts. research methodology this research is focused on analyzing the development of the securities market in uzbekistan, the improvement of the regulatory framework, and trends in digitalization, using official documents as primary data sources. the research is based on a qualitative methodology, utilizing document analysis, legal-technical comparison, and contextual interpretation methods. this approach allows for a comprehensive study of the legal and practical development of the market. the trade volume and strategic directions in the 2023 report of the "tashkent" stock exchange were examined in relation to changes in regulatory documents. the internal control rules in the 2019 and 2021 documents, as well as the 2024 digital identification procedure, were analyzed in terms of their impact on market safety and convenience. the analysis prioritized a qualitative approach, as the available data is primarily textual and legal in nature. due to the fact that the data is derived from official state documents and the stock exchange report, the validity of the research is considered to be high. the documents are registered by the ministry of justice of the republic of uzbekistan, and their legal status is confirmed. special attention was paid to maintaining impartiality and objectivity during the analysis process. this methodology allows for a systematic analysis of the legal and technological development of the securities market in uzbekistan and provides a foundation for further detailed presentation of the results in the subsequent sections. analysis and discussion of results in this section, the results derived from five documents on the development of the securities market in uzbekistan are analyzed, and their legal, technological, and practical significance is discussed. the results highlight important changes in strengthening the market’s internal control mechanisms, increasing convenience through digitalization, and aligning with international standards. the 2023 report of the "tashkent" republican stock exchange reflects the practical development of the market. according to the report, the exchange’s trading volume showed an upward trend compared to the previous year, with increased activity in the stock and bond markets. specifically, the report emphasized the expansion of international cooperation (such as the signing of memorandums with foreign exchanges) and the development of digital platforms as strategic directions. this growth indicates the positive impact of regulatory and legal reforms. the order from the ministry of justice of the republic of uzbekistan dated october 23, 2019, regarding amendments and additions to the "regulation on internal control of professional participants in the securities market," and the decision from the ministry of finance of the republic of uzbekistan and the department for combating economic crimes under the general prosecutor's office of the republic of uzbekistan dated june 26, 2021, aimed at strengthening internal control in the securities market. in 2021, mechanisms for deep monitoring of operations by high-ranking officials and a 30-day operation suspension were introduced. these changes align with fatf standards and serve to enhance market security. american journal of business management, economics and banking volume 35 april 2025 p a g e | 21 www.americanjournal.org the trading volume in the stock market amounted to 19.18 trillion soms ($1.5 billion). compared to the previous year, the trading volume increased by 16.56 trillion soms or 632.0%. meanwhile, the main volume of trades (18.6 trillion soms) was attributed to transactions related to the primary placement of shares and block transactions on the free of payment board (fop) in the secondary market. the significant growth in transaction volume on the fop platform is explained by the increasing use of the organized market by issuers transitioning from the unorganized over-the-counter market to execute deals, which ensures higher levels of openness and transparency in the stock market. as a result, the share of the unorganized market decreased from 94% last year to 58%, while the share of the organized market increased from 6% last year to 42% in 2024. the average daily trading volume amounted to 77.4 billion soms. the main indicators of the stock market are as follows 2020 2021 2022 2023 2024 trading volume mln so‘m 510800 1147110 4705790 2620570 19182120 average daily trading volume mln so‘m 2003 4588 19052 10567 77347 average size of a single transaction mln so‘m 14.2 16.1 58.4 6.4 43.2 number of transactions dona 35983 71187 80652 411393 443849 average daily number of transactions dona 141 285 327 1659 1790 figure 1. key indicators of the stock market1 the resolution of the cabinet of ministers of the republic of uzbekistan, no. 238, dated april 26, 2024, "on approval of the regulation on the procedure for remote digital identification of customers in the securities market," introduced the procedure for remote digital identification of customers. this system is based on kyc (know your customer) and aml/cft (anti-money laundering/countering the financing of terrorism) requirements and enables remote account opening and contract signing with a digital signature. the document establishes strict measures for data security (e.g., local server hosting, multi-factor authentication). the following table shows the key features: 1-table. features of the digital identification system2 feature description advantage remote deposit account opening via biometric passport/id card convenience for investors multi-factor authentication confirmation via sms, email, or social networks enhancing security compliance with fatf requirements a verification system compliant with aml/cft standards international integration 1 the information is sourced from the official website of the "tashkent" republican stock exchange, uzse.uz. 2 prepared by the researcher based on lex.uz and international standards. american journal of business management, economics and banking volume 35 april 2025 p a g e | 22 www.americanjournal.org digitalization in the experience of india's nse (sebi, 2023) increased the number of investors, similarly, in uzbekistan, it could stimulate market activity, but the low technological infrastructure and digital literacy of the population may limit the widespread adoption of this system. the results show that the securities market of uzbekistan is at a significant stage of development through the improvement of the legal framework and digitalization. internal control measures have strengthened market security, and digital identification has opened new opportunities for investors. the activities of the "tashkent" exchange in 2023-2024 confirm the practical results of these reforms. however, for the market's full potential to be realized, it is necessary to enhance technological infrastructure and increase the population's financial literacy. these results align with international experience, but due to local conditions, there are specific limitations. conclusion this study analyzed the development of the securities market in the republic of uzbekistan from 2019 to 2024, focusing on the improvement of the regulatory framework and digitalization trends. based on the 2023 report of the "tashkent" republican stock exchange, the decree of the ministry of justice of the republic of uzbekistan dated october 23, 2019, on amendments to the "regulation on the internal control of securities market professional participants," the resolution of the ministry of finance and the economic crimes department of the prosecutor general's office of the republic of uzbekistan dated june 26, 2021, regarding amendments and additions to the internal control regulations for securities market participants to combat money laundering, financing of terrorism, and the spread of weapons of mass destruction, and the decision of the cabinet of ministers of the republic of uzbekistan dated april 26, 2024, on approving the "regulation on the digital identification of clients in the securities market" the following conclusions were drawn. the internal control mechanisms were significantly strengthened. in 2021, mechanisms for monitoring operations of senior officials and a 30-day suspension were introduced. these changes align with fatf standards and enhanced the security level of the market. with the 2024 decision, the digital identification system was implemented, enabling remote account opening and contract validation based on kyc and aml/cft requirements. this provided convenience for investors and strengthened the market's international integration. the 2023 report of the "tashkent" stock exchange confirmed the growth of trading volume and the expansion of international cooperation, reflecting the practical results of regulatory reforms. however, market liquidity and investor activity remain limited, which is associated with insufficient technological infrastructure and financial literacy development. these results demonstrate that uzbekistan's securities market has made significant strides in terms of transparency, security, and alignment with international standards. digitization has opened new opportunities for investors, but its full impact depends on technological capabilities and the digital experience of the population. international experience, such as india's nse platform (sebi, 2023), has shown that digitization can sharply increase the number of investors, but in uzbekistan, this process is still in its early stages. at the same time, the strengthening of internal controls has increased the accountability of market participants, though its economic effectiveness will require long-term monitoring. development of technological infrastructure: to ensure the widespread use of the digital identification system, it is necessary to modernize internet infrastructure and server capacities. this will help attract american journal of business management, economics and banking volume 35 april 2025 p a g e | 23 www.americanjournal.org international investors and increase market liquidity. increasing financial literacy of the population: the government and the stock exchange should organize public education programs. for instance, free courses on securities trading could increase the number of investors. wider implementation of international experience: drawing on the experiences of digital platforms in india or the european union (nse, mifid ii), uzbekistan should develop real-time trading systems and data exchange mechanisms. strengthening monitoring and evaluation: it is recommended to create a specialized statistical database to regularly analyze the impact of internal controls and digitization on market activity. this will help substantiate future policy decisions. enhancing staff qualifications: regular training for professional participants and regulators based on international standards (fatf, iosco) will ensure quality market governance. these recommendations will support the future development of uzbekistan's securities market. the research findings and proposals can serve as a foundation not only for local policy development but also for future academic work studying market modernization in developing countries. the long-term stability and competitiveness of the market will depend on the comprehensive implementation of the measures outlined above. references 1. cabinet of ministers of the republic of uzbekistan. resolution on the approval of the procedure for remote digital identification of clients in the securities market (no. 238, april 27, 2024). national legislation database, 09/24/238/0304. 2. "tashkent" republic stock exchange. stock market analysis report for 2023. tashkent: "tashkent" rfb. 3. official website of the "tashkent" republic stock exchange: uzse.uz 4. european commission. directive 2014/65/eu (mifid ii) on markets in financial instruments. official journal of the european union, l 173/349, 2018. 5. fatf (financial action task force). international standards on combating money laundering and the financing of terrorism & proliferation: the fatf recommendations. paris: fatf, 2019. 6. iosco (international organization of securities commissions). principles for the regulation and supervision of securities markets. madrid: iosco, 2020. 7. la porta, r., lopez-de-silanes, f., shleifer, a., & vishny, r. w. law and finance. journal of political economy, 106(6), 1113-1155. 8. levine, r. (1998). finance and growth: theory and evidence. handbook of economic growth, 1, 865-934. 9. sebi (securities and exchange board of india). annual report 2022-2023. mumbai: sebi, 2023. 10. world bank. capital markets development: trends and challenges in emerging economies. washington, dc: world bank group, 2022. https://www.uzse.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 38 www.americanjournal.org analysis of e-commerce activities through the provision of remote banking services yusufkhujaev fazliddin mansur ugli independent researcher of tashkent state university of economics a b s t r a c t k e y w o r d s in the context of the global digital economy, the rapid growth of ecommerce is creating demand for new formats and instruments in the financial services market. from this perspective, remote banking services (internet banking, mobile banking, electronic payment systems, and digital wallets) have emerged as an integral part of e-commerce activity. these services facilitate the exchange of goods and services in a digital environment, ensure quick settlements and payments, and help reduce transaction costs in the economy. digital economy; ecommerce; remote banking services; information technologies; mobile banking; online payments; fintech integration; cybersecurity; data protection; financial inclusion; digital infrastructure; api integration; digital wallets; fraud monitoring; cu stomer experience. introduction in today’s global economic environment, digital technologies are becoming the primary means of conducting commercial activities. e-commerce — the process of buying and selling goods and services via the internet — is considered one of the fastest-growing sectors in the digital segment of the economy. the stable development of this process is closely linked to the advancement of remote banking services. remote banking services provide e-commerce participants with the ability to carry out transactions in real time, connect to international payment systems, perform fast financial operations via mobile devices, and create convenient conditions for customers. for instance, the share of transactions in ecommerce through global payment platforms such as paypal, alipay, apple pay, samsung pay, stripe, and payoneer has increased by nearly 70% over the past five years. similarly, in our country, payment systems such as uzcard, humo, click, payme, apelsin, and myuzcard have become key elements of the e-commerce infrastructure. american journal of business management, economics and banking volume 41 october2025 p a g e | 39 www.americanjournal.org the experience of developed countries shows that the efficiency of e-commerce is ensured not only by the expansion of online trading platforms but also by the digitalization of financial services. in this process, the role of the banking system is particularly important — because every transaction between e-commerce participants is carried out through a bank. therefore, in a digital economy, it is of critical importance to deeply integrate banking services with the e-commerce ecosystem, ensure cybersecurity, establish interoperability, and enable data exchange through apis. in the republic of uzbekistan, large-scale efforts are also being made to strengthen the integration of banking and e-commerce systems within the framework of the “digital uzbekistan – 2030” strategy, the law “on electronic commerce,” and the central bank’s program for the development of digital payment infrastructure. fast execution of online trade operations through remote banking services, digitalization of export-import settlements, and the formation of a digital payment culture among the population are becoming key factors in enhancing the potential of e-commerce in the national economy. to deliver the cash‑out service, the bank opens a separate e‑pos terminal for each external system. during the cash‑out process, a special 6‑digit one‑time password (otp) is sent to the telephone number (to which sms service is enabled) of the card from which money is withdrawn. the cash‑out transaction is carried out by entering this code into the external system (with the cardholder’s consent) and verifying the correctness of the code on the bank’s server. if sms service is disabled for the card, the cash‑out service is prohibited. we believe that, considering the economic situation, a single cash‑out transaction from one card should not exceed 5,000,000 (five million) soms, and the total amount withdrawn in a single day by one card should not exceed 300 times the base calculation amount. cash‑out services are executed based on mutual accounts and the terms of contracts with partners. for each accounting period, the external systems and payment aggregators must provide an invoice (with commission amounts) and supporting documents showing the performed services. lately, in order to improve service quality for individuals and create convenience, providing services via electronic wallets has become widespread. when a wallet is created, a unique number matching the contract number with the client is automatically assigned and shown in the wallet interface. use of all wallet features, or application of set limits and restrictions, depends on the status of the wallet. the electronic wallet operator is a system in the payment industry that offers innovative solutions to customers, helping them pay for goods and services, send and receive money (e.g. yandex.money, qiwi, paypal, webmoney, etc.). electronic money are virtual currencies expressed in electronic form, used for all types of payments via the internet. the relationships governing the identification and top‑up of electronic wallets (service fees, bank service charges, and other terms) are regulated by a contract between the bank and the wallet operator. the bank and the payment aggregator may involve agents under contract for these services. identification of the electronic wallet is carried out using the customer’s passport data. if additional information is required by the operator’s rules or contract, identification is done accordingly. based on the entered data, the wallet operator verifies the customer. identification service is provided for a fee. this service fee is determined per the bank’s tariff schedule. limits on the top‑up amount are established in the contract between the bank and the wallet operator, and must comply with the legislation of the republic of uzbekistan. during the transfer process, the bank monitors that the transfer amount is within permissible limits; if not, the transaction is not american journal of business management, economics and banking volume 41 october2025 p a g e | 40 www.americanjournal.org allowed. to top up the wallet, the operator keeps a deposit in the bank’s account in advance. top‑ups may be done in foreign currency; the customer sees the sum in the foreign currency, and the converted amount in national currency is accepted on the day of transfer per the official exchange rate. after top‑up, the bank’s deposit is reduced accordingly. a commission is charged from the customer per bank tariffs for the top‑up service. to create convenience for students, commercial banks and higher education institutions (heis) are implementing several projects, one of which is the universal student card. some heis and commercial banks in our country have already launched this project successfully. the universal student bank card is issued to students of uzbekistan’s heis with the following functionalities: international payment bank card; identification card for the student; preferential transport card; identification card granting access to campus buildings, state libraries, dormitories, and other relevant areas. the card is issued by the bank under the auspices of the visa international payment system. the card has nfc functionality, enabling payments via magnetic field induction and validation via validators. cards are issued based on hei orders. the heis transmit student application data to the bank via information systems. the application contains: full name, gender, passport data (including national identification number), temporary and permanent residence addresses, phone number. after the hei submits the card order, the bank fetches additional student data from “hemis” and “e‑gov” electronic systems: photo, educational level, faculty, etc. once all required data are received, the bank’s automated banking system (abt) creates a student account and card contract. the bank’s processing center then issues the card. if the student loses the card or it becomes invalid, they may request reissuance by visiting a bank branch or via the mobile application. cards ordered by heis are distributed to students in the hei premises by bank staff; unclaimed cards are returned to the bank. when cards are delivered or presented to students, bank staff verify the student’s identity. in banks, biometric indicators (fingerprint, iris pattern, voice protection, etc.) are considered among the most reliable means of ensuring material responsibility. in banking systems, for opening and closing cash vaults, fingerprint identification has proven itself and is widely used in commercial bank services in our country. the executing contact blocks of the encryption device are connected via a magnetic-contact sensor between the vault door and the iron-grilled door. the sensor is also connected in parallel to an alarm loop. the bank’s cash vault and night safe are separate, each equipped with three distinct layers of security. the three security barriers are separately connected via loops to a three-channel security control device (aggregator), whose output line connects to the technical security point (tsp) and the bank’s security room alarm system. to input biometric data into the system, biometric reading devices are used. three persons responsible for the vault (branch director, chief accountant, and vault manager) must each have fingerprint samples from all fingers of both hands. these fingerprint samples are entered, with name, position, etc., into a special program. the system allows monitoring the dates and times of vault opening and closing, as well as the identities and positions of the three accountable persons. considering changes in personnel (e.g., during leave, illness, travel, etc.), the fingerprint samples of their replacements are also stored in the system, and updated as needed. american journal of business management, economics and banking volume 41 october2025 p a g e | 41 www.americanjournal.org the accountable persons must always keep the vault keys so that no one else can use them. when the vault is locked in sequence, the biometric fingerprint of the authorized persons is read in the following order: a) first (the fingerprint) — vault manager; b) second — chief accountant; c) third — branch director. additionally, each of these persons must input their code (number) into the decryption device. after security guards verify that the vault is locked, they accept it into custody, record its opening/closing, handover, and sign the register. the vault manager contacts the tsp guard via telephone with a special password to hand over the vault, and records this in the custody register as well. before opening the vault, the following must occur: a) the guard must verify the integrity of doors and locks (ensure no intrusion attempts); b) the vault manager contacts the tsp guard by phone using a special password to receive acceptance of the vault at the technical security control point, and documents it; c) each accountable person must enter their decryption code and provide biometric fingerprint data in sequence. in all cases, the accountable persons must keep the vault keys such that others cannot use them. the vault manager, cash desk cashier, and accountant‑controller must all follow similar biometric procedures for opening the vault, including code entry and fingerprint scanning. access control and management systems use combinations of token codes, memory codes, and biometric features to identify persons, enable authorized entry to restricted areas, and prevent unauthorized access to bank premises. when vaults are opened or closed, if the fingerprint matches the stored template, a signal (blue or green light) is shown; if not, a red light indicates failure. figure 1. number of zoomrad users in 2022, the number of users of the “aloqa business” mobile application and the “bank-client” internet banking software, designed for legal entities and individual entrepreneurs, amounted to 28,192, achieving a 34% increase compared to the previous year. we analyze the development of digital banking at at aloqabank as our research object. the bank has determined its primary strategic goal to digitize all banking services through remote provision. today, the “zoomrad” mobile application serves individuals, while “aloqa business” mobile app and the “bank‑client” internet banking system serve corporate customers. as of january 1, 2023, the number of “zoomrad” mobile app users was 831,756, representing a 2.6‑fold increase compared to the same period the previous year. as of january 1, 2024, the number of users reached 2,049,093, a 2.5‑fold growth year‑on‑year. 68503 322160 832271 2049093 0 500000 1000000 1500000 2000000 2500000 2020 2021 2022 2023 american journal of business management, economics and banking volume 41 october2025 p a g e | 42 www.americanjournal.org in 2023, the number of users of the “aloqa business” mobile application and the “bank-client” internet banking software, designed for legal entities and individual entrepreneurs, reached 35,708, reflecting a 28% growth compared to the previous year. the zoomrad mobile application was integrated with the ministry of construction and housing and communal services, making it possible to make online payments to more than 2,000 homeowners’ associations and management companies. a service to arrange mandatory third-party vehicle insurance was introduced in the zoomrad mobile application. a feature for booking online appointments at aloqabank service branches was launched via the zoomrad app. a new “investment” digital service was introduced through integration solutions with the jett platform in the zoomrad mobile application. as of january 1, 2023, the number of active users of the “zoomrad” mobile application amounted to 732 thousand, and through the app: card-to-card money transfers (p2p) totaled 16,923.2 billion uzs, transactions for other services amounted to 3,410.1 billion uzs. as of january 1, 2024, the number of active users of the “zoomrad” mobile application reached 1,884,457, and through the app: card-to-card money transfers (p2p) totaled 16,519.34 billion uzs, transactions for other services amounted to 13,136.83 billion uzs. table 1 information on transactions made via the zoomrad mobile application (online currency conversion, loan repayments, online deposit placements, deposit withdrawals, onetime payments), in billion uzs no. service name 2022 2023 change billion soums interest 1 online conversion operations 418.42 1528.2 1109.78 265.23 2 credits extinguishing payments 447.13 714.28 267.15 59.75 3 online deposits formalization 2164.66 9895.17 7730.51 357.12 4 getting microloans online 157.35 157.35 0 0.00 5 one time payments 222.54 841.83 619.29 278.28 total 3410.1 13136.8 9726.73 285.23 in order to further develop electronic commerce, and improve and expand the system for remote payments and receipts for individuals and business entities, effective cooperation has been established with all major payment systems (click, payme, paynet, paymo, paysys, beepul, upay, oson pochta). additionally, new cooperation agreements have been signed with newly licensed payment service providers authorized by the central bank, including beelab payment system platform, multicard payment, and devhub. the number of users of remote banking services has increased 4.4 times over the past five years. in particular, while the number stood at 10.153 million in 2020, it reached 44.0996 million by 2024. in 2020, the number of legal entities using these services was 691 thousand, and by 2024, this number increased to 1.34 million. likewise, the number of individual users grew 5 times during this period — from 9.463 million in 2020 to 42.76 million in 2024. despite the complexity of artificial intelligence (ai) at the early stages, the fact that banks, financial service providers, and the insurance sector have become its most active users clearly demonstrates the numerous benefits of ai. by the end of 2022, ai in the banking, financial services, and insurance (bfsi) sector accounted for 18% of the total market. american journal of business management, economics and banking volume 41 october2025 p a g e | 43 www.americanjournal.org according to a report by the international data corporation (a corporation that provides knowledge and consulting services on the technology market), global spending on artificial intelligence in 2023 reached usd 166 billion. the banking sector alone accounted for 13% of this amount, making it one of the leading industries. this spending is expected to increase to usd 450 billion by 2027. references 1. ant group. (2022). digital finance and inclusive growth report. hangzhou: ant group. 2. paypal. (2023). form 10-k & annual report: digital payments ecosystem overview. san jose, ca: paypal holdings, inc. 3. stripe. (2024). payments infrastructure for the internet: developer documentation & economic impact notes. san francisco, ca: stripe, inc. 4. ўзбекистон respublikasi марказий банки. (2024). to‘lov tizimlari bo‘yicha yillik hisobot 2023/2024. toshkent: cbu. 5. ўзбекистон respublikasi марказий банки. (2023). raqamli to‘lov infratuzilmasini rivojlantirish dasturi: 2023–2025. toshkent: cbu. 6. aloqabank. (2024). annual report 2023/2024: digital banking development and zoomrad kpis. toshkent: at “aloqabank”. 7. aloqabank. (2024). zoomrad mobile application: user metrics and feature releases (2022–2024) — internal analytical brief. toshkent: at “aloqabank”. 8. uzcard & humo. (2023). national card schemes: interoperability, atm/pos acceptance and tariff overviews. toshkent. 9. click, payme, paynet, paymo, paysys, beepul, upay, oson pochta. (2023–2024). payment service provider documentation: api specifications and merchant acquiring guides. toshkent. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 65 www.americanjournal.org the concept of digital assets and their legal aspects jololiddinova dilara zovki kizi, student of the faculty of civil and business law at tashkent state university of law email: dilarajololidinova@gmail.com a b s t r a c t k e y w o r d s this article examines the concept of digital assets, focusing on their definitions, classifications, and the evolving role they play in the modern digital economy. it analyzes the key legal aspects of digital assets, including ownership rights, transferability, protection mechanisms, and the challenges arising from their regulation. the study reviews current legislation and judicial practices related to digital assets, identifying existing gaps and inconsistencies in legal frameworks across different jurisdictions. the purpose of this research is to provide a comprehensive understanding of how digital assets are integrated into contemporary legal systems and to discuss potential directions for developing effective legal regulation that ensures stability, security, and legal certainty in the digital sphere. digital assets, legal aspects, ownership, regulation, blockchain, cryptocurrencies, intellectual property, digital economy, legal frameworks, asset protection introduction in recent years, the rapid development of digital technologies has led to the emergence of new types of social and legal relations. it would not be an exaggeration to say that the 21st century is the era of technology, and humanity is entering a period of profound digital transformation. the primary challenge facing legal scholars today is ensuring that the law can “catch up” with these technological changes by establishing appropriate norms and regulations. one of the most complex and dynamic areas of this transformation concerns digital assets — a new category of rights and property relations in the digital environment. this paper focuses on the concept and legal aspects of digital assets, discussing their definition, scope, and the challenges of legal regulation. it also explores the mechanisms of protection and the evolving nature of ownership in the digital domain. concept and definition of digital assets a digital asset is generally understood as any form of information existing in digital format that possesses economic or personal value. american journal of business management, economics and banking volume 41 october2025 p a g e | 66 www.americanjournal.org according to van niekerk, “a digital asset is any element of text or tools that is formatted in binary form, including access rights.” one of the primary reasons why even a simple file stored on a computer may be classified as a digital asset is its capacity for repeated use and long-term value, similar to traditional physical assets. digital assets are not limited to ownership by their creators — they can be transferred, licensed, or shared, which distinguishes them as a new category of legally significant objects in the digital economy. the oxford dictionary defines a digital asset as “an element that includes the right to use text or tools in a digital format.” such assets encompass textual works (articles, blog posts, documents, databases) as well as multimedia materials (images, videos, animations, audio files, and other digital content). artificial intelligence platforms also offer practical definitions. for example, chatgpt defines a digital asset as “any form of content or information that exists in digital form and has a certain value.” this definition emphasizes two essential characteristics: 1. intangibility – the asset exists exclusively in digital form and cannot be physically touched; 2. value – it must possess economic or personal worth sufficient to make it a potential object of trade or transfer. similarly, investopedia states that a digital asset is “anything that is created and stored digitally, identifiable, and possessing an appropriate level of value.” this broad definition covers a wide range of objects — from manuscripts, documents, and databases to cryptocurrencies and tokens — all of which share the key features of digital existence, identifiability, and value. legal framework in uzbekistan with the advancement of the digital economy, uzbekistan’s legislation has begun incorporating norms that reflect new realities. the term “digital” appears more than fifteen times in the draft of the new civil code, which introduces definitions for cryptocurrency, digital rights, and other related categories, thereby establishing the initial legal foundation for their recognition. according to article 167 of the draft civil code, “digital rights are defined by law as obligations or other rights established within an information system, the content and conditions of which correspond to statutory characteristics. the exercise or transfer of such rights, including alienation, pledge, or restriction, may occur only within the information system without the involvement of third parties.” in this way, a person who has the ability to dispose of a right within the system is considered the legal holder of that digital right. this approach introduces a technologically neutral framework, recognizing the autonomous validity of rights in the digital environment without the need for traditional intermediaries. the legal nature of digital rights it is important to note that digital rights constitute a broader concept than digital assets. according to a.a. kartskhia, digital rights should be recognized as a form of property right capable of being exercised within civil transactions. r.i. sitdikova and r.b. sitdikov argue that the legal regulation of digital rights requires systematic legislative reform and clarification of their civil-law status. american journal of business management, economics and banking volume 41 october2025 p a g e | 67 www.americanjournal.org as e.n. agibalova observes, the notion of digital rights is extremely broad, potentially encompassing all forms of human activity mediated by technology — from online transactions to the use of electronic banking tools and digital identification systems. in russian law, provisions of the civil code of the russian federation treat digital rights as property rights existing within an information system. v. zorkin interprets them as rights allowing individuals to access, upload, and manage information through electronic means. a. sidikov proposes an innovative view, suggesting that the objects of digital rights differ from traditional property in that they can be replicated and transferred while retaining full legal validity. r.s. bevzenko, in contrast, considers digital rights not as an independent category but as part of the broader system of property rights under civil law. nevertheless, given their complexity and scope, it may be more appropriate to recognize digital rights as a distinct legal institution within modern civil law.1 digital assets vs. crypto assets: foreign scholars such as a. kud, n. kucheryavenko, and e. smichok distinguish between the notions of digital assets and crypto-assets. a digital asset refers to any asset represented electronically and traded in digital form, while a crypto-asset specifically denotes a digital asset secured or issued using cryptographic technologies, such as blockchain. this distinction is significant for regulatory purposes: whereas digital assets may include non-fungible tokens (nfts), databases, or digital artworks, crypto assets are defined by their reliance on cryptographic proof and decentralized systems. understanding this difference is essential for developing coherent national and international legal frameworks for digital economies. the above provision represents a general concept that outlines the basic principles governing the creation and disposal of digital objects. although the norm does not provide an explicit definition of digital rights, it refers to their recognition “as defined by law” and specifies that such rights operate in accordance with the rules of an information system. in our opinion, these “rules of the information system” may correspond to the terms of service (tos) or user agreements established by each digital platform. this suggests that while general principles of digital rights are determined by statutory law, the specific conditions of implementation are shaped by the internal regulations of individual service providers. such a dual-layer approach — combining legislative norms and contractual governance — reflects the hybrid nature of digital regulation, balancing public law and private autonomy. furthermore, article 166 of the draft civil code introduces crucial provisions regulating cryptocurrency, one of the most significant categories of digital assets. according to the article:“digital money (cryptocurrency) is a set of obligations and other rights that have value and ownership, the content and conditions of which are determined in the manner prescribed by law. digital money (cryptocurrency) is an object of civil rights and is freely traded, unless otherwise provided by law. unless otherwise stipulated, the circulation, transfer, or disposal of digital money (cryptocurrency) shall be carried out exclusively within an information system.” this formulation establishes the civil-legal nature of cryptocurrency, recognizing it as a lawful object of property rights within uzbekistan’s legal system. it also highlights the principle that transactions 1 куд а., кучерявенко н., смычок е. цифровые активы и их экономикоправовое регулирование в свете развития технологии блокчейн. моногарфия. – харков: право, 2019. – 384 с. american journal of business management, economics and banking volume 41 october2025 p a g e | 68 www.americanjournal.org involving cryptocurrencies must occur within a controlled digital infrastructure, ensuring traceability, transparency, and legal security of digital exchanges. the u.s. state of wyoming’s sf0125 act, effective july 1, 2019, provides one of the most progressive legal definitions of a digital asset. according to this act: “a digital asset is a representation of economic and property rights stored in a machine-readable format, including consumer assets, digital securities, and virtual currencies.”this definition highlights two essential characteristics of cryptocurrencies and digital assets. first, a digital asset must possess economic value — it embodies quantifiable worth capable of exchange or investment. second, it must be transferable, meaning it can be owned or possessed by another person. only when both of these attributes are present can a cryptocurrency or digital asset be considered a lawful object of ownership and circulation within a digital information system. its legal status therefore depends not merely on its technological form but on the recognized rights of disposal, alienation, and transferability under the governing system. similarly, the criminal code of the republic of uzbekistan introduces the concept of a crypto-asset, defining it as:“a property right representing the total of digital records in a distributed data ledger, having both value and an identifiable owner.” this approach corresponds closely with global standards, recognizing that a crypto asset represents intangible property expressed through entries in a distributed ledger (blockchain). both definitions — the wyoming act and the uzbek criminal code — emphasize two fundamental legal attributes: (1) value, and (2) ownership. as discussed earlier in the analytical overview, these two features determine the legal existence of a digital asset. a digital asset cannot be a physical object or possess tangible characteristics; rather, it exists exclusively in digital form and acquires legal significance only when it possesses measurable economic value that allows it to serve as the subject of sale, exchange, or other civil transactions. the appendix no. 1 to the order of the director of the national agency for perspective projects of the republic of uzbekistan dated july 14, 2022, no. 32, also outlines the main characteristics of crypto-assets, defining them as a set of digital entries in a distributed data ledger that possess value and may constitute property rights. in addition, the presidential decree no. pp-3832 of july 3, 2018, “on measures for the development of the digital economy and the sphere of crypto-asset turnover in the republic of uzbekistan,” defines a crypto-asset as a property right whose value is represented by the total of digital entries in a distributed ledger and which has an identifiable owner. the decree further specifies that activities in the field of crypto-asset turnover, including mining and related services, constitute regulated economic activities requiring licensing as service providers. today, digital assets have become an integral part of everyday life — encompassing computers, smartphones, digital media, and cloud-stored data constantly integrated into the digital environment. historically, the concept of “assets” referred exclusively to tangible property such as money, machinery, buildings, or land. later, the law recognized intangible assets such as intellectual property, trademarks, and trade secrets. however, the digital revolution of the late 20th century introduced a new category of civil-law objects: digital assets. although some scholars classify digital assets as a subtype of intangible assets, modern practice demonstrates that they represent a distinct and independent legal category. users of the digital world, including those on social networks, increasingly recognize that digital assets have real and american journal of business management, economics and banking volume 41 october2025 p a g e | 69 www.americanjournal.org measurable economic value. for instance, certain online accounts — such as ebay or paypal — may be inherited after the account holder’s death, confirming their economic and personal worth. email or social-media accounts may also contain personal data, images, or other valuable digital information closely tied to an individual’s identity and family life. inheritance and ownership issues: inheritance of digital assets is an emerging legal challenge. currently, platforms such as facebook and x (formerly twitter) do not sufficiently regulate succession of user accounts. on one hand, this seems reasonable, as a person’s account is private and may be closed after death. on the other hand, if a deceased individual’s bank balance can be inherited, then logically, funds held in paypal, payoneer, or other digital wallets should also be transferable to heirs. in this regard, it appears necessary to recognize that all forms of assets — physical or digital — should be inheritable. for example, earnings stored in digital freelancing platforms such as fiverr or upwork can constitute inheritable property, as they have clear monetary value and ownership attribution. the necessity of legal regulation when addressing the legal aspects of digital assets, the central issue is whether these assets require explicit regulation. some scholars argue that digital assets emerged precisely to bypass centralized legal and financial systems, and therefore should remain largely unregulated. however, in our view, legal regulation of digital assets is indispensable for several reasons: 1. economic significance: the share of digital assets in the global economy is rapidly increasing. the global digital asset management (dam) market was valued at usd 3.96 billion in 2023, is expected to reach usd 4.59 billion in 2024, and may exceed usd 16 billion by 2032. revenue in the broader digital-asset market is projected to reach usd 80 billion in 2024, with an annual growth rate (cagr 2024-2028) of 8.77 %, resulting in an estimated usd 112 billion by 2028. the number of users is expected to exceed 990 million by 2028, demonstrating the scale of this phenomenon. 2. taxation and transparency: due to the pseudonymous nature of blockchain transactions, digital assets can complicate tax collection and financial oversight. the inability to trace every transaction facilitates tax evasion and undermines state revenue systems. 3. cybersecurity risks: digital assets are vulnerable to illegal hacking, fraud, and data breaches. individual users rarely possess the technical means to ensure the same level of protection as professional custodians or state institutions. therefore, regulation serves not only the state but also ordinary citizens, protecting their digital property from abuse and loss. american journal of business management, economics and banking volume 41 october2025 p a g e | 70 www.americanjournal.org legal uncertainty in current legislation: another issue necessitating regulation is the lack of clarity regarding which branch of law governs digital-asset relations. in uzbekistan, for instance, the question of which legislation applies to disputes concerning digital assets remains open. the draft civil code attempts to address this gap. according to article 446 of the draft, the provisions governing the sale of property rights — including digital rights — shall apply to transactions involving such rights, unless otherwise provided by the nature or content of the rights themselves. in our opinion, this exception applies when certain digital rights are subject to transfer restrictions, such as non-transferable software licenses or personal subscriptions. moreover, if the sale of a digital right violates copyright or intellectual property law, the transaction must be deemed invalid. consequently, both buyers and sellers must carefully review contractual terms before concluding any digital-asset transaction. intellectual property considerations: intellectual property (ip) rights form another essential aspect of the legal framework for digital assets. digital media, software, and other forms of digital content are protected by copyright and related rights, enabling rights-holders to control, distribute, and profit from their works. effective regulation of digital assets should therefore align with existing ip frameworks to prevent overlapping claims or misuse of protected materials. conclusion: digital assets have become an indispensable part of the modern economy. their unique nature — combining features of both property and intangible rights — requires the creation of a comprehensive and flexible legislative framework governing ownership, transfer, and protection. for an object to qualify as a digital asset, it must meet three key conditions: 1. it must exist exclusively in digital form; 2. it must possess economic value; and 3. it must be capable of ownership or transfer. thus, digital assets occupy a distinct position in civil law, separate from both tangible and traditional intangible property. clear legal definitions, inheritance rules, and protection mechanisms are essential to ensure security, accountability, and equitable treatment in the growing digital economy. references 1. van niekerk, a. j. (2006). the strategic management of media assets: a methodological approach. allied academies, new orleans congress. 2. oxford learner’s dictionary. (n.d.). retrieved from https://www.oxfordlearnersdictionaries.com/definition/english/digital-asset 3. digital asset: meaning, types, and importance. (n.d.). investopedia. retrieved from https://www.investopedia.com/terms/d/digital-asset-framework.asp 4. what is a digital asset? (n.d.). mpost blog. retrieved from https://mpost.io/uz/glossary/digitalasset 5. new draft of the civil code of the republic of uzbekistan. retrieved from https://regulation.gov.uz/ru/d/29059 https://www.oxfordlearnersdictionaries.com/definition/english/digital-asset https://www.investopedia.com/terms/d/digital-asset-framework.asp https://mpost.io/uz/glossary/digital-asset https://mpost.io/uz/glossary/digital-asset https://regulation.gov.uz/ru/d/29059 american journal of business management, economics and banking volume 41 october2025 p a g e | 71 www.americanjournal.org 6. kartskhia, a. a. (2019). digital rights and law enforcement. monitoring of law enforcement, (2), 44. https://doi.org/10.21681/2226-0692-2019-2 7. sitdikova, r. i., & sitdikov, r. b. (2018). digital rights as a new type of property right. property relations in the russian federation, 9(204), 79. 8. agibalova, e. n. (2020). digital rights in the system of objects of civil rights. legal bulletin of dagestan state university, 33(1), 93. 9. zorkin, v. d. (2018, may 29). law in the digital world: reflections on the sidelines of the st. petersburg international legal forum. rossiyskaya gazeta. 10. sitdikov, a. (2020). digital law — the legal basis of the digital economy. criterion of justice, (11), 50. 11. primary education online journal. (n.d.). retrieved from https://www.ilkogretimonline.org/fulltext/218-1612858492.pdf 12. kud, a., kucheryavenko, n., & smichok, e. (2020). digital assets and their economic and legal regulation in the context of blockchain technology development. tashkent: monograph, 384 p. 13. sf0125 – digital assets: existing law. (2019). wyoming legislature. retrieved from https://www.wyoleg.gov/legislation/2019/sf0125 14. goldfinger, c. (1997). intangible economy and its consequences for statistics and statisticians. international statistical review, 65(2). 15. lecas, n. (2020). legal aspects of the custody of digital assets. 16. key market insights: digital asset management (dam) market report. (n.d.). fortune business insights. retrieved from https://www.fortunebusinessinsights.com/digital-asset-managementdam-market-104914 17. digital assets – worldwide. (n.d.). statista. retrieved from https://www.statista.com/outlook/fmo/digital-assets/worldwide https://www.ilkogretim-online.org/fulltext/218-1612858492.pdf https://www.ilkogretim-online.org/fulltext/218-1612858492.pdf https://www.wyoleg.gov/legislation/2019/sf0125 https://www.fortunebusinessinsights.com/digital-asset-management-dam-market-104914 https://www.fortunebusinessinsights.com/digital-asset-management-dam-market-104914 https://www.statista.com/outlook/fmo/digital-assets/worldwide american journal of business management, economics and banking issn (e): 2832-8078 volume 34, march 2025 p a g e | 128 www.americanjournal.org directions for increasing the investment activity of institutional structures of the stock market usmonov zokirjon master's degree of toshkent state university of economics, butayev javlonbek phd student at tashkent state university of economics a b s t r a c t k e y w o r d s in this article, the activity of the stock market and institutional structures in it is analyzed, a number of theoretical materials and directions of activity of local stock market participants are reflected within this topic, and a number of recommendations are proposed. investment, stock market, institutional structures, joint-stock company, ipo, commercial banks. introduction currently, the deepening of financial relations between institutional structures in stock markets around the world, the global importance of capital flows in the investment activities of institutional structures, and the increasing influence of institutional structures on the economies of countries on major stock exchanges indicate the important role of the stock market and its institutional structures. according to data provided by international financial organizations, including the world bank group, “the current volume of global stock markets exceeds 178 trillion us dollars,”1 and investment activity in them is showing a tendency to grow. increasing the investment activity of institutional structures in the stock market requires ensuring the financial stability of institutional structures, using effective financial support mechanisms, and, as a result, further improving relations in attracting investments to the economy through the stock market. extensive research is being conducted in the world to further deepen the integration of stock markets, increase the investment activity of stock market institutional structures, and further improve the activities of institutional structures. as a result of these studies, the lack of a single scientifically based approach to ensuring the growth trend of stock indices, diversifying investment activities in stock market institutional structures, using market mechanisms to increase their investment activity, and 1 world bank group: the world bank (international bank for reconstruction and development); international finance corporation (ifc); and multilateral investment guarantee agency (miga) https://openknowledge.worldbank.org/discover?rpp=10&etal=0&query=capital+market&group_by=none&page=2 https://openknowledge.worldbank.org/discover?rpp=10&etal=0&query=capital+market&group_by=none&page=2 american journal of business management, economics and banking volume 34 march 2025 p a g e | 129 www.americanjournal.org assessing the impact of institutional structures on the economy through the development of their investment activities indicates the need to conduct in-depth scientific research in this area. today, priority areas for increasing the investment activity of stock market institutional structures have been identified in uzbekistan, and in these areas, tasks have been set to accelerate the attraction of investments to the national economy and thereby ensure high growth rates, and improve the activities of stock market institutional structures. the task is set to "develop an investment strategy for sectors and regions with the involvement of foreign experts, assess the effectiveness and socio-economic impact of the investments being attracted, and identify leading sectors for directing foreign direct investment."2 in ensuring the implementation of this task, one of the most urgent issues is to assess the impact of internal and external factors on the investment activity of the institutional structures of the stock market, improve the mechanism for attracting foreign investments through the stock market, and further improve the mechanism for conducting ipos by economic entities. literature review having studied foreign experiences of increasing the investment activity of institutional structures of the stock market, it is appropriate to cite the following views of a number of economists on this issue. the concept of "stock market" is used in some scientific literature as a synonym for the concept of "securities market". in this sense, the stock market is also a market for relations related to the purchase and sale of securities, including securities. in this sense, it should be said that this market is a necessary component of the financial sector, ensuring the accumulation and purchase of the necessary financial resources, that is, the stock market is a segment of the financial market. modern economists n.i. berzon, e.a. buyanov explained the capital market as an integral part of the general market of production factors. they believe that in order to understand this, it is necessary to clarify the content of the category "capital". that is, it is accepted that capital is money, wage payments, investments for the development of production. according to professor g.n. beloglazova, honored scientist of the russian federation, "the capital market is a part of the financial market where longterm money, that is, funds held for a period of more than one year, are traded." also, according to i.l. butikov: “from today's point of view, three main reasons can be seen in the division of banks and dealers by securities. first, the involvement of banks in the business of guaranteeing the placement of securities seems too risky. second, the situation is alarming, and the role of banks as underwriters directly leads to an alarming conflict of interest. third, the alarming situation mainly reflects the growing concentration in the financial sector.” according to economist e. zhukov, “currently there are three securities markets participating in the financing of the economy: over-thecounter, stock (exchange) and street market.”3 research methodology the research used methods of analysis: comparison, analysis, synthesis, data grouping, as well as induction and deduction. 2 from the speech of the president of the republic of uzbekistan at the videoconference meeting on january 15, 2020, dedicated to expanding exports, investments and localization. https://president.uz/uz/lists/view/3291. 3 e.f. zhukova. рынок ценных бумаг. /pod.ed. m.: yuniti, 2003. p.13. https://president.uz/uz/lists/view/3291 american journal of business management, economics and banking volume 34 march 2025 p a g e | 130 www.americanjournal.org results and discussion currently, specialized non-bank financial institutions, in particular insurance organizations or groups, non-state pension funds, investment companies and funds, are actively operating in the stock market as part of the investment direction of the stock market. these institutional structures, along with commercial banks, are usually called "institutional investors". in this regard, the investment activity of institutional investors in the stock market, which is relatively large in terms of institutional structures the european banking system and the russian banking system, is as follows: according to the european system according to the russian system figure 1. comparative information of two systems of institutional structures of the stock market in terms of investment activity 4 according to figure 1, in foreign practice, there are tendencies to increase the share of institutional investors participating in the allocation of resources in the activities of institutional structures of the stock market. in this regard, in the experience of the european union countries (germany, the czech republic, austria, poland), commercial banks also work as equal institutional investors of the stock market in the following areas: ❖ they can act as founders of investment funds and companies; ❖ invest in shares or securities; ❖ perform the functions of brokers, dealers in the government securities market; ❖ can perform the functions of depository, clearing institutions. in conclusion, the analysis of developing and developed stock markets has shown that the more the economy is saturated with monetary resources, the higher the securities component in economic turnover, the higher the capitalization of the stock market relative to gross domestic product. 4 prepared by the author. through the central bank; 5% through commercial banks 35% through institutional investors; 60% through the banking system 90% through institutional investors; 10% american journal of business management, economics and banking volume 34 march 2025 p a g e | 131 www.americanjournal.org figure 2. institutional structures of the stock market in the world, changes in investment activity relative to gdp, in units.5 figure 2 shows the change in the investment activity of institutional structures of the stock market in the world relative to gdp. accordingly, in 2018 it amounted to 86.5 trillion us dollars. this year, the volume of market capitalization, reflecting the investment activity of institutional structures of the stock market, amounted to 68.89 trillion us dollars, or 79.6 percent of gdp. of course, the volume of capitalization by investment activity of institutional structures has been growing year by year. in particular, in 2019 this indicator increased by 114.4 percent compared to the previous year, and the volume of capitalization exceeded 78 trillion us dollars. also, the market capitalization of institutional stock market structures amounted to $93.69 trillion in 2020, the highest level in relation to global gdp during the period under review. in 2021, this figure decreased by 8.6% compared to 2020, but in terms of real capitalization, it increased by $4.4 trillion. of course, in the context of high activity and the impact of external risks, such as the covid-19 pandemic and the worsening geopolitical situation in the eurasian region, in 2021 and 2022, the volume of stock market capitalization in relation to global gdp did not even reach the level of 2020. in addition, in addition to the current financial instability and high inflation expectations in the world, against the background of the increasingly aggravating geopolitical situation in the middle east region, it can be predicted that even in 2025, the investment activity of institutional structures of the stock market will not exceed the level of the pandemic period (2020) in relation to world gdp. by analyzing the activities of stock exchanges, which are considered one of the most important institutional structures of the stock market, it becomes possible to analyze investment activity in this market, assess the current situation in it, and form scientifically based conclusions. it was established in accordance with the decree of the president of the republic of uzbekistan dated april 8, 1994 no. pf-745 "on measures to further deepen economic reforms, ensure the protection of private property and develop entrepreneurship." at the initial stage, the creation of this structure was associated with the economic reforms planned to be implemented in the republic, including 5 prepared by the author. 86.5 87.73 85.22 96.88 100.56 68.89 78.83 93.69 98.1 102.6 79.6 89.9 109.9 101.3 102.0 0 20 40 60 80 100 120 2018 2019 2020 2021 2022 0.0 20.0 40.0 60.0 80.0 100.0 120.0 world gdp, trillion us dollars institutional structures of the stock market in the world capitalization volume, trnl us dollars capitalization level of institutional structures of the stock market in relation to gdp, percentage american journal of business management, economics and banking volume 34 march 2025 p a g e | 132 www.americanjournal.org privatization processes, measures to create open joint-stock companies on the basis of state-owned enterprises. the mechanism of trading on the tashkent republican stock exchange is expressed as follows (figure 3). figure 3. mechanism for conducting trades on the tashkent republican stock exchange.6 in uzbekistan, a number of analytical indicators are used to analyze the investment activity of institutional structures in the stock market. in particular, the country's gdp, refinancing rate and inflation rate, foreign trade volume, money supply (m2) and international reserves, exchange rates, the volume of the securities market and its structural structure, the activities of listed companies, etc. since the investment activity of institutional structures in the stock market is actively influenced by the refinancing rate and inflation rates in the country, we believe that it is important to comprehensively consider and analyze the volume of these indicators. 6 https://www.uzse.uz/abouts/capital https://www.uzse.uz/abouts/capital american journal of business management, economics and banking volume 34 march 2025 p a g e | 133 www.americanjournal.org figure 4. changes in the refinancing rate and inflation indicators in uzbekistan in 2018-2022, in percent.7 the change in the refinancing rate and inflation indicators in uzbekistan in 2018-2022 can be explained as follows: in 2018, the refinancing rate in our republic, i.e. the main rate, was 14 percent, in 2019 it was 16 percent, in 2020 it was 15 percent, in 2021 it was 14 percent, and in 2022 it was 15 percent. this refinancing rate is determined by the central bank of the republic of uzbekistan based on the criteria of demand and supply for money; an analysis of inflation indicators shows that in 2018 this indicator was 14.3 percent, in 2019 it was 15.2 percent, in 2020 it was 11.1 percent, in 2021 it was 10 percent, and in 2022 it was 12.3 percent; the decrease in inflation rates from 2020 compared to previous years can also be assessed as the effect of increasing the refinancing rate. the reason is that there is an inverse relationship between the refinancing rate and the rate of inflation. however, despite the fact that the increase in the refinancing rate has a positive effect on the relative reduction of one of the important factors of inflation indicators the flow of money in circulation, it has a strong effect on the increase in the percentage of loans, which are necessary money channels for the economy. conclusion in conclusion, it can be said that the specific features of the development of investment activity of institutional structures in the stock market were studied and their connection with the country's economic growth was substantiated. foreign experiences in increasing the investment activity of institutional structures of the stock market were studied and recommendations were developed on the possibilities of their application in the conditions of uzbekistan. in addition, promising directions for increasing the investment activity of institutional structures of the stock market were identified, and scientific proposals and practical recommendations were developed. recommendations were formulated to improve the mechanisms for increasing the investment activity of institutional structures 7 compiled by the author based on data from the statistics agency under the president of the republic of uzbekistan. the rate of inflation, in percent refinancing (prime) rate 0 5 10 15 20 2018 2019 2020 2021 2022 14.3 15.2 11.1 10 12.3 14 16 15 14 15 the rate of inflation, in percent refinancing (prime) rate american journal of business management, economics and banking volume 34 march 2025 p a g e | 134 www.americanjournal.org of the stock market. also, as a result of the analysis carried out in this article, the following conclusions were formed: 1. in order to further support domestic issuers in the stock market, it is necessary to place their shares on foreign stock markets on the recommendation of the underwriter, after initially placing them on the republican stock exchange. this will improve the mechanism for placing shares on foreign stock markets by domestic issuers; 2. as a result of the study, it was found that the state can influence the investment activities of institutional structures in the country through the following means: credit, financial and tax policy; granting tax incentives to enterprises investing in the reconstruction and technical re-equipment of production; depreciation policy; creating favorable conditions for attracting foreign investments; scientific and technical policy, etc.; 3. foreign developed capital markets provide domestic institutional investors with a range of investable assets and actively help diversify the investor base, creating an opportunity for issuers to attract financial resources from sources other than commercial banks, often at lower costs; 4. when analyzing the investment activity of institutional structures of the stock market, it is advisable to analyze the number of contracts concluded by them on the stock exchange and their volume. this is because through these analyzes, it is possible to track the trends in the investment activity of institutional structures of the stock market; 5. another interrelated factor affecting the inflation indicator, which plays an important role in the stock market, is export-import operations and their volume. therefore, by analyzing the indicators related to the dynamics of foreign trade of uzbekistan in 2018-2022, it is possible to accurately assess the factors affecting the investment activity of institutional structures of the stock market, and through them to formulate scientifically based proposals and recommendations aimed at increasing the investment activity of these structures. references 1. decree of the president of the republic of uzbekistan no. dp-60 dated january 28, 2022 “on the development strategy of new uzbekistan for 2022-2026”. 2. e.f. zhukova. рынок ценных бумаг. /pod.ed. m.: yuniti, 2003. p.13. 3. from the speech of the president of the republic of uzbekistan at the videoconference meeting on january 15, 2020, dedicated to expanding exports, investments and localization. https://president.uz/uz/lists/view/3291 4. i. butikov. қимматли қоғозлар бозори. textbook. t.: konsauditinform, 2001. p. 81. 5. gozibekov d.g'. investment financing issues.-t.: "moliya" 2003. p. 332. (p. 122-124). 6. vahobov a.v. and others. foreign investments. study guide.-t.: "moliya" 2010. p. 328. (p. 152). 7. khamidulin m.b. развитие финансового механизма корпоративного управления. doctor of science obtained the degree of auto-abstract written for the dissertation tashkent, 2008.-37p. 8. s. elmirzaev. "zamonaviy korporativ boshqaruv". textbook, 2019. page 416. 9. www.uzse.uz information from the official website of the tashkent foundation budget. 10. world bank group: the world bank (international bank for reconstruction and development); international finance corporation (ifc); and multilateral investment guarantee agency (miga) https://openknowledge.worldbank.org/discover?rpp=10&etal=0&query=capital+market&group_ by=none&page=2. https://president.uz/uz/lists/view/3291 http://www.uzse.uz/ https://openknowledge.worldbank.org/discover?rpp=10&etal=0&query=capital+market&group_by=none&page=2 https://openknowledge.worldbank.org/discover?rpp=10&etal=0&query=capital+market&group_by=none&page=2 american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 53 www.americanjournal.org green technology-oriented investments – achieving sustainable development through the it sector author: sabina kholiyorovna bo‘tayeva lecturer at tashkent university of economics and technologies email: sbotayeva94@gmail.com | tel: +998909222804 (independent researcher at tuit) a b s t r a c t k e y w o r d s this article analyzes the role of investments in green technologies in achieving sustainable development through the information technology sector. the it sector is considered a crucial factor in increasing energy efficiency, reducing waste, and ensuring environmental sustainability through innovative solutions. the article discusses best practices, challenges, and solutions to improve investment efficiency. green technologies, information technology, sustainable development, investments, energy efficiency, environmental innovation. introduction one of the most pressing challenges facing humanity today is the disruption of ecological balance and the depletion of natural resources. the green economy is an economic system aimed at protecting the environment, efficient use of resources, and achieving sustainable development. transitioning to a green economy and achieving sustainability is possible with the help of information technology. these technologies assist in improving energy efficiency, conserving resources, reducing waste, and implementing environmental monitoring. the integration of it and the green economy plays a significant role not only in protecting the environment but also in ensuring economic growth. in uzbekistan, complex measures are being gradually implemented to deepen structural changes, modernize and diversify the basic sectors of the economy, and ensure balanced socio-economic development across regions. for instance, the presidential decree no. pq-4477 dated october 4, 2019, approved the 'strategy for transition to a green economy in the republic of uzbekistan for 2019– 2030.' in 2018, uzbekistan ratified the paris agreement adopted on december 12, 2015, committing to reduce specific greenhouse gas emissions per unit of gdp by 10% compared to 2010 levels by 2030. however, insufficient energy efficiency, irrational use of natural resources, slow technological innovation, and the low involvement of small businesses in implementing innovative green solutions pose serious obstacles to achieving the country's sustainable development goals. to overcome these challenges, it is essential to apply low-carbon development and resource-saving principles across all economic sectors, introduce clean and efficient technologies, and integrate approaches based on sustainable agriculture. american journal of business management, economics and banking volume 37 june2025 p a g e | 54 www.americanjournal.org literature review. global warming, air and water pollution, and the increasing volume of waste are steering humanity toward green, i.e., environmentally friendly and sustainable technologies. the concept of a 'green' economy gained widespread attention in academic literature in 1989 through the uk report 'blueprint for a green economy.' it was seen as an approach that integrates economic growth with ecological sustainability and social justice. in 2008, the unep officially recognized the green economy concept and promoted it as a means to improve both ecological stability and economic efficiency while reducing poverty. foreign scholars such as d. pearce, e. barbier, and g. atkinson laid the theoretical foundations of the green economy concept. researchers like ornela danushi, stefano forti, and jacopo soldani conducted systematic reviews of sustainable software development in ict, while jinsong wu, song guo, huawei huang, william liu, and yong xiang examined the impact of ict on sustainable development goals. local researchers such as elshod umarov, ruslan shodmonov, sherzod mustafakulov, a. zokirov, sh. ghaniyev, and m. turaqulov have explored uzbekistan's transition to a green economy, the importance of government policy, legal frameworks, and the role of small and medium-sized enterprises in promoting innovation. methodology this article employs case study methods focusing on two main approaches: green technology-oriented investments and paths to achieving sustainable development through the it sector. in the last 15 years, new mechanisms and tools for environmentally-focused investments have been developed. the institute of forecasting and macroeconomic research has analyzed the financing of such green projects globally and in uzbekistan. according to the latest report by the global landscape of climate finance, the total volume of climaterelated financing reached $632 billion during 2019–2020. of this, $321 billion came from public sources, while $310 billion was funded by private sources. currently, there is a noticeable increase in the activity of “green” financing in uzbekistan. while it was previously provided in the form of specific projects and grants from international financial institutions, in recent years other instruments such as “green” loans and bonds have also been introduced. in july 2021, the government became the first within the cis and among the pioneers globally to issue sovereign sdg bonds aimed at financing the sustainable development goals, placing them on the london stock exchange. these bonds, amounting to 2.5 trillion uzbek soums (approximately 235 million usd) with a 14% yield, were issued for a term of three years. the funds raised are directed towards implementing activities and projects targeting nine specific national sustainable development goals, including objectives related to “green” development. american journal of business management, economics and banking volume 37 june2025 p a g e | 55 www.americanjournal.org figure 1. key instruments for financing “green” projects. green financing instruments are diverse, enabling enterprises to attract investments without government involvement, derive financial benefits from “green” activities, and reduce (or eliminate) environmental pollution. in this process, information technology is becoming a vital tool. investments directed toward the it sector can contribute not only to technological progress but also to environmental sustainability. green technologies are those that help reduce negative environmental impacts and promote the efficient use of energy and resources. the main types include: • renewable energy sources (solar, wind, biogas); • energy-saving devices and systems; • it solutions for electronic waste recycling; • environmental monitoring systems, i.e., technologies enabling online observation of environmental conditions. to ensure these technologies operate effectively, they must be integrated with information technologies. in recent years, significant progress has been made in uzbekistan in attracting investments directed toward green technologies. through government policy and international cooperation, several initiatives aimed at transitioning to a green economy and protecting the environment have been implemented. below are the main actions and achievements in uzbekistan: 1. investments in green and renewable energy sources.the government of uzbekistan is paying significant attention to renewable energy sources, especially solar and wind energy. projects utilizing solar energy are being implemented in several regions of the country. for example, the construction of a large solar power station has begun in the navoi region. plans are also in place to expand the use of wind energy in the northern and western parts of uzbekistan. 2. legislation supporting green technologies.in 2021, uzbekistan developed laws aimed at ensuring the transition to a green economy. tax incentives, grants, and subsidies have been introduced to promote the development of green technologies. financial instruments based on esg (environmental, social, governance) principles are being expanded to encourage green investments. 3. waste recycling systems in cities.in several uzbek cities, waste recycling systems are being introduced. in tashkent, the construction of new plants for waste sorting and processing is planned. american journal of business management, economics and banking volume 37 june2025 p a g e | 56 www.americanjournal.org the tashkent ecological economic zone (tashkent-ecozone) is being established to implement projects on waste recycling, green building technologies, and other environmental initiatives. 4. creating a sustainable transport system.electric vehicles and eco-friendly transportation are becoming more popular in uzbekistan. the government has introduced special tax incentives to promote electric vehicles. particular attention is being paid to the development of environmentally friendly transport in tashkent and other major cities. 5. sustainable agriculture and water-saving technologies.innovative technologies are being introduced in uzbekistan's agriculture sector to save and use water more efficiently. water-saving systems and technologies help optimize water resources in agriculture. projects are being implemented to attract investments through “smart irrigation systems.” 6. cooperation with international organizations. uzbekistan, in partnership with the world bank, international monetary fund, and other international organizations, has implemented programs to develop green technologies. scientific and practical research is being conducted at the international green energy center of uzbekistan on energy efficiency and renewable energy sources. 7. issuing green bonds and developing esg investment mechanisms.new mechanisms are being developed in uzbekistan’s economy to issue green bonds and attract esg investments. these bonds help raise funds for renewable energy and ecological infrastructure projects. green technologies consist of innovations aimed at efficiently using resources, reducing waste, and ensuring sustainable development without harming the environment. below are the challenges and solutions for increasing efficiency in the green economy. challenges: 1. limited financial resources. many enterprises or governments lack sufficient investment to implement green technologies. these technologies can be costly at the initial stage. 2. underdeveloped technological infrastructure. infrastructure required for iot, artificial intelligence, or big data technologies (e.g., internet, servers, sensors) is lacking in many areas. 3. shortage of specialists. there is an insufficient number of qualified personnel who can work at the intersection of green technologies and it. 4. weak legislative and political support. not all countries have laws, tax incentives, or grant programs supporting green technologies. 5. low public awareness. there is not enough promotion and education about green technologies and environmental safety. solutions: 1. implementing new projects and technologies through public-private partnerships (ppp). 2. diversifying sources of financing.attracting funds from international financial institutions (world bank, opec, aiib), green bonds, and esg investments. 3. using artificial intelligence to reduce waste and control water/electricity consumption. 4. strengthening education and training programs. preparing specialists in the field of green it through universities and it centers. american journal of business management, economics and banking volume 37 june2025 p a g e | 57 www.americanjournal.org 5. raising awareness through information technology. promoting ecological culture via mobile applications, web portals, and social media. analysis and results the study presented detailed information about the main institutions involved in the development of a “green” economy, their functions, and their roles in this process (as shown in the table). the effective functioning of these structures is a critical factor for the successful implementation of the strategy to transition to a green economy.improving the organizational and economic mechanisms for developing a green economy in the country involves implementing a set of measures necessary to ensure environmental sustainability and maintain continuous economic growth. by nature, the green economy includes economic activities aimed at protecting the environment, rational and efficient use of natural resources, and reducing the volume of waste. table 1. key organizational structures involved in the development of the “green” economy organization name main function role in development ministry of energy of the republic of uzbekistan developing the “green” energy strategy coordinating body ministry of ecology, environmental protection and climate change environmental standards and monitoring regulatory and supervisory authority ministry of investments and foreign trade financial support for “green” projects attraction of foreign investments uzbekistan agency for innovation development of “green” technologies promotion of innovative solutions “green” energy fund (if available) financing and allocation of grants financial mechanism uzbekistan is also continuing to implement green energy projects in cooperation with international organizations and countries. for instance, there are programs aimed at developing energy exchange and cooperation with afghanistan and central asian countries. uzbekistan is placing great emphasis on expanding the use of solar and wind energy. projects are being implemented to construct solar photovoltaic stations in order to fully utilize the country’s abundant solar resources. for example, in 2020, uzbekistan planned to build solar power stations with a total capacity of 1,000 mw. the government of uzbekistan has developed new laws and regulatory documents in the field of green energy. these documents are aimed at encouraging investment in renewable energy sources, including attracting investors and facilitating the import of technologies. projects aimed at improving the efficiency of existing energy systems in the country are also being implemented. these include measures to reduce energy losses, save energy resources, and decrease waste. recently, uzbekistan has launched several initiatives on the production of hydrogen energy. scientific research and the introduction of new technologies in this field are planned. the methodology for studying investments directed toward green technologies requires a scientifically based, systematic, and comprehensive approach.innovations implemented in the field of information and communication technologies (ict) are contributing significantly to sustainable development. for instance, ict companies may have the potential to reduce an additional 10 gigatons of carbon dioxide (co₂) emissions by 2030. the contribution of it technologies to sustainable development includes the following. american journal of business management, economics and banking volume 37 june2025 p a g e | 58 www.americanjournal.org figure 2. the contribution of it technologies to sustainable development. information technologies not only make human life more convenient but also contribute significantly to ecological sustainability. the following aspects are particularly important in this regard: • real-time monitoring and forecasting of air quality, water levels, or waste volumes using artificial intelligence; • cloud technologies help reduce electricity consumption by storing large volumes of data in centralized locations; • efficient use of resources such as water, electricity, and gas through iot (internet of things) devices—for example, smart homes and smart cities; • big data analytics facilitates a deeper understanding of environmental issues and helps develop effective solutions. the widespread adoption of green technologies depends on financial support. in this regard, government policies, the private sector, and international donor organizations play a vital role: • government investments: green transformation strategies, tax incentives, and grants at the state level are used to support it-eco projects; • private sector: many it companies are investing in green startups. for instance, google and microsoft are transitioning their data centers to 100% renewable energy; • international organizations: entities like the world bank, the european bank for reconstruction and development (ebrd), and the undp are providing financial and technical support to green projects in uzbekistan. in recent years, the government of uzbekistan has launched several initiatives to develop the digital economy and transition to green energy, including: • establishing techno-parks for green energy; • supporting startups through it park programs; uzbekistan’s recent initiatives in digital economy and green energy significantly contribute to the country’s economic development. these processes not only stimulate economic growth but also promote environmental sustainability and foster international cooperation. such efforts aim to increase uzbekistan’s global economic competitiveness in the future. iot (internet of things) managing energy and resources through smart devices. blockchain ai (artificial intelligence) data analysis and effective ensuring data security and increasing transparency cloud computing storing and utilizing data in a centralized manner american journal of business management, economics and banking volume 37 june2025 p a g e | 59 www.americanjournal.org the programs and initiatives implemented in uzbekistan in the fields of it park and green economy are making a considerable contribution to digital and ecological sustainable development. the government is actively supporting startups through it park, promoting innovation, and introducing high technologies. these centers and platforms, aimed at developing the ict (information and communication technologies) sector in uzbekistan, are primarily designed for young entrepreneurs and tech startups. uzbekistan it park is a specially designated area for the development of high technologies and the implementation of innovative projects. its main tasks are to support it and innovative startups, connect them with the private sector and international markets, and create technological incubators and accelerators. incubators and accelerator programs at it park offer entrepreneurs services such as technological consulting, mentoring, investment access, and legal support. startups at uzbekistan it park are working in the most advanced areas of the digital economy, such as blockchain technologies, artificial intelligence (ai), big data, cybersecurity, and other high-tech fields. the main goal of it park is to ensure the successful operation of new startups and make them competitive in the global market. startups have the opportunity to attract funding from local and international investors. it park organizes special events, pitching sessions, and forums for companies and investors. training, seminars, and conferences are regularly held to enhance technical and business skills among startups and it specialists. these events aim to foster innovation in the it sector and promote successful startup development. uzbekistan it park is also undertaking a range of initiatives to facilitate international cooperation and expand access to global markets. startups operating in the country are receiving support to become competitive on the international stage. the government of uzbekistan is paying special attention to ensuring ecological sustainability and developing the green economy. the key goals of the green economy include the efficient and environmentally friendly use of natural resources, reducing the carbon footprint, and advancing renewable energy sources. the government is particularly focused on the development of solar, wind, and other renewable energy sources. by 2030, it is planned that 25% of the country's energy will come from renewable sources. several large-scale projects are being implemented in this direction, including the construction of solar photovoltaic plants and wind farms. uzbekistan's climate is very favorable for solar energy production. currently, the country operates several hundred megawatts of solar power stations, with new projects underway. in 2022, one of the world’s largest solar photovoltaic plants was constructed in navoi region. some regions in uzbekistan are also suitable for wind energy, and numerous large-scale projects are being implemented in this area as well. in the industrial and transportation sectors, projects are being introduced to improve energy efficiency. these include the development of energy-efficient technologies, waste reduction in manufacturing, and programs aimed at reducing energy consumption. in the construction sector, it is important to use energy-saving and eco-friendly technologies. new buildings are being constructed based on green building principles, such as energy-efficient structures and the installation of renewable energy systems. american journal of business management, economics and banking volume 37 june2025 p a g e | 60 www.americanjournal.org uzbekistan hosts a number of investment platforms focused on green technologies and sustainable development. these platforms aim to support the development of eco-friendly technologies, combat climate change, and accelerate the transition to a green economy. • the "yashilovul" platform developed by the global green growth institute (gggi) provides opportunities for farmers and agribusiness representatives to adopt modern innovations, exchange experiences, and apply green technologies. the platform was developed within the framework of the "green rehabilitation investment project for the republic of karakalpakstan to address the aral sea crisis," funded by koica. • uzdif, as uzbekistan’s national financial institution, is focused on supporting green investments. for example, it backed the issuance of private green bonds by saipro group, which comply with global environmental and financial standards, thereby strengthening the integration of uzbekistan’s financial system into global green finance. • the european bank for reconstruction and development (ebrd) allocated a loan of $10 million to hamkorbank to support green investments in uzbekistan. these funds will finance projects aimed at improving energy efficiency. according to ebrd's green economy transition (get) strategy, by 2025, 50% of the bank’s annual business volume is planned to be directed toward green financial operations. • acwa power, a company from saudi arabia, has launched uzbekistan’s first green hydrogen production project. as part of this initiative, a 52 mw wind power station is planned to be constructed in chirchik. this project represents a significant step in the country’s effort to develop renewable energy sources. • the tech4impact ngo is implementing a number of programs in uzbekistan aimed at developing women’s and youth entrepreneurship in the field of green technologies. these programs support projects with social impact in the areas of climate change, innovation, and green technology. uzbekistan is planning to issue green bonds to support the country’s transition to a green economy. these bonds are intended to attract investments and finance environmental projects. the country is also expanding cooperation with international financial institutions, including the world bank, asian development bank (adb), and others in the field of green energy and environmental sustainability. support programs for startups through the it park and initiatives aimed at developing the green economy are making a substantial contribution to uzbekistan’s economic and environmental development. activities in the digital economy and green energy sectors are positioning uzbekistan on a path of competitive and sustainable global development. digital technologies play a significant role in the development of startups and small businesses. through new technologies and it infrastructure, small and medium-sized enterprises can expand their services, enter new markets, and improve efficiency. for example, e-commerce, fintech, and digital service sectors play an important role in economic diversification. with it, companies can automate processes and handle data quickly and accurately, reducing costs and using resources efficiently—thus supporting economic growth. digital technologies also enable companies to compete on a global scale. through e-commerce platforms, online marketing, and digital exports, producers can access new markets and promote their brands. american journal of business management, economics and banking volume 37 june2025 p a g e | 61 www.americanjournal.org contribution of it sector to social sustainability. • implementing digital technologies helps improve the education system. remote learning, online courses, and digital platforms are expanding training and upskilling opportunities, thus increasing public access to knowledge and education. • innovations in it support not only technological development but also social inclusion. digital solutions such as applications and platforms for individuals with physical or mental disabilities enhance their participation in society. the internet also provides easier access to communication and essential services. • digital technologies help address social issues. for example, telemedicine, cybersecurity, and educational resources can be used to support various social groups. • through it services, high-quality services can be delivered to remote regions. technologies also enable efficient management of energy resources. smart grid systems, for example, can improve energy network efficiency and reduce losses. moreover, iot (internet of things) technologies allow for monitoring and optimizing energy consumption. • it helps in the management and integration of renewable energy sources like solar and wind into energy grids. smart grid systems, for instance, enhance the efficient use of renewables. • it also aids in environmental monitoring and in preventing ecological risks. for example, drones, sensors, and mapping systems can monitor agriculture, forests, water resources, and air quality—supporting the prevention of ecological threats and efficient resource use. it innovations significantly contribute to achieving the un sustainable development goals (sdgs). digital technologies empower individuals to participate actively in protecting their rights and interests, and simplify access to government services. digitization in education and expanded remote learning opportunities provide access to education across all social layers. supporting it and tech startups creates new jobs and ensures economic growth. achieving a sustainable green economy is possible through several avenues in the it sector. the development of it and technology is vital for sustainability, as it enables efficient resource management, reduced energy consumption, minimized environmental harm, and advancement of green technologies. it is used to create advanced systems for monitoring and managing solar, wind, and other renewable energy sources. for instance, iot can efficiently manage energy consumption. new technologies are also being developed to improve energy efficiency in computer systems, servers, and data centers, including energy-saving and improved cooling systems that reduce the carbon footprint. remote work systems supported by it reduce transportation costs and greenhouse gas emissions. remote work enabled by new technologies and platforms supports a sustainable green economy. digital archiving systems help reduce paper use, conserving resources and lowering environmental impact. it also enables smart transportation systems to optimize traffic and road conditions, reducing congestion and energy consumption. creating smart buildings to improve energy efficiency and reduce carbon emissions is another area. sensors allow for the monitoring and optimization of energy and water use. blockchain technologies can create transparent systems for the generation and distribution of renewable energy, improving energy trading and governance and enhancing trust. blockchain also enables continuous environmental monitoring. artificial intelligence (ai) can help manage water, land, and other agricultural resources efficiently. analyzing data can increase yields american journal of business management, economics and banking volume 37 june2025 p a g e | 62 www.americanjournal.org and reduce environmental impact. ai also supports monitoring and forecasting environmental changes, and can guide strategies to reduce carbon emissions. digital currencies and payment systems enable the digital management of documents and financial flows, reducing reliance on paper and transportation. it solutions enable effective management of green investments and environmental projects. cloud computing and centralized storage systems promote efficient resource use and reduce energy use by servers. efficient data and statistical analysis can help assess and improve the ecological impact of business and policy. the it sector can be a powerful tool for achieving a sustainable green economy. technologies contribute to energy saving, environmental protection, resource management, and ecological sustainability. moreover, innovations such as ai, smart cities, blockchain, and digital platforms offer new opportunities for solving ecological challenges. conclusion .the integration of information technologies and green technologies is becoming a means of protecting humanity from ecological disaster. investment acts as the bridge connecting these two directions. green it solutions not only preserve the environment but also improve economic efficiency, create jobs, and lead society toward a digitally ecological consciousness. therefore, developing the it sector with a green orientation is the most appropriate path forward today. the it industry is one of the key driving forces of sustainable development. digital technologies create vast opportunities for economic, social, and environmental sustainability. they enhance efficiency, ensure optimal use of resources, generate new jobs, and support inclusive social development. moreover, applying it for environmental sustainability aids in the protection of natural resources. thus, the contribution of the it sector to sustainable development creates important and beneficial avenues for countries and the world at large. investments targeted at green technologies are essential tools for achieving sustainable development goals. the it sector plays a central role in this process by providing eco-friendly solutions, enabling efficient use of resources, and implementing digital control and monitoring systems to reduce environmental burdens. for instance, smart energy systems, digital agriculture, green ai, and cloud computing technologies reduce resource wastage and improve energy efficiency. furthermore, it tools increase the transparency and effectiveness of investment projects through online management, monitoring, and data-driven decision-making. therefore, integrating green technologies with it solutions is a forward-looking strategy for ecological sustainability, economic growth, and social well-being in uzbekistan and globally. in particular, smart infrastructure, cloud computing, ai-based environmental monitoring systems, and green digital platforms are optimizing production, consumption, and investment processes. these technologies serve as vital tools for ensuring ecological safety, reducing carbon footprints, and adapting to climate change. from this perspective, integrating it with green investments increases the efficiency of sustainable development strategies and provides scientific-innovative solutions to global environmental challenges. for uzbekistan, this approach represents an important step toward economic diversification, compliance with international environmental standards, and building a digitally green economy. american journal of business management, economics and banking volume 37 june2025 p a g e | 63 www.americanjournal.org references 1. the president of the republic of uzbekistan. 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(2022). foreign experience in the development of the fruit and vegetable sector for sustainable food supply. gospodarka i innowacje, (22), 624–630. 13. nazarova, m. (2024). financing the cultivation of fruit and vegetable products: support and effective use of loans. novateur publications – journalnx: a multidisciplinary peer reviewed journal, 10(7), 79–83. 14. niyazova, n. a. (2019). advantages of using information and communication technologies in education. scientific bulletin of namangan state university, 1(12), 234–237. 15. bo‘tayeva, s. (2024). the role and importance of information technologies in the management systems of enterprises in the digital economy. eurasian journal of technology and innovation, 2(2), 7–9. https://lex.uz/ru/docs/4569641 american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 41 www.americanjournal.org internal audit and corporate governance: ensuring transparency and efficiency maxmudova sharifa elmurodovna tashkent state university of economics, phd candidate sharifamaxmudova177@gmail.com a b s t r a c t k e y w o r d s in this article, the importance of internal audit in the corporate governance system, tariffs given to corporate governance, their variety, corporate governance models, anglo-saxon model, continental-european model, mixed model, regulatory documents on corporate governance, participants and the importance and necessity of internal audit among these participants are discussed. corporate management, business entity, internal audit, corporate management models, anglo-saxon model, continental european model, mixed model, participants of corporate management, principles of corporate management, normative documents of corporate management. introduction at present, it is no secret that a number of measures are being undertaken to further develop and improve the economy. in particular, within business entities, internal audit serves as a tool of corporate governance to enhance enterprise performance, ensure accurate assessment of risks, maintain proper internal control, prevent errors and shortcomings, eliminate fraud, and create an effective management environment. internal audit is understood as a systematic and continuous process conducted by internal auditors within a business entity, following a carefully developed plan and optimal procedures. as a result, all errors and deficiencies are identified in a timely manner in each department, rectified by responsible persons, and the enterprise achieves higher efficiency and overall positive outcomes. the simultaneous establishment of corporate governance and internal audit within business entities is extremely important and necessary. this can be understood through numerous examples, the study of foreign practices, and the scientific research conducted by our scholars. literature review and methodology corporate governance, in english “corporate governance,” refers to the set of circumstances through which the board of directors conveys information, manages, and monitors the activities of a company to achieve its objectives. according to national legislation, corporate governance is defined as “a set of rules that determine the key actions of shareholders, members of the supervisory board, and other executive personnel in managing the company’s activities.” american journal of business management, economics and banking volume 40 september2025 p a g e | 42 www.americanjournal.org the concept of corporate governance is quite broad, which can also be observed through the approaches of various scholars: v. lekaram: “corporate governance is not merely corporate management; it is a system that includes fair, efficient, and transparent management aimed at achieving clearly defined objectives.” parkinson: “corporate governance is a monitoring and control process designed to ensure that company management operates in the interests of shareholders.” world bank: “corporate governance refers to a set of legal regulations that facilitate investment in business entities and enable effective operational performance. the governance structure of joint-stock companies (general meeting of shareholders, supervisory board, executive body, audit commission, internal and external audits) is considered an element of the corporate governance system.” d. suyunov: “corporate governance is a set of actions carried out to achieve the company’s objectives based on existing regulations that protect the rights of entities within corporate ownership and on certain governance principles.” a. khashimov: “the main essence of corporate governance is to establish a balance of interests among the various parties involved in the activities of a joint-stock company.” a. karimov: “corporate governance is a system through which a business entity is managed; it ensures the effective and secure management of economic and social resources for development, oversees the administration of shareholder and investor capital, identifies and aligns stakeholder interests, and allocates generated profits proportionally among them through organizational, legal, and economic measures.” results as can be seen above, these definitions are numerous and reflect a diversity of perspectives. this list could be extended with many more definitions. the emergence of such varied viewpoints is due to the fact that corporate governance is structured according to different models. currently, corporate governance consists of the following models: table 1 corporate governance models and their content no. model name model description 1 anglo-saxon (usuk) divided into the us and uk models. the primary goal is for corporate managers to maximize shareholders’ wealth. information disclosure and accounting standards differ between these countries. us corporations follow gaap (generally accepted accounting principles), while the uk follows ifrs (international financial reporting standards) for financial reporting. 2 continental europe (germany) internal mechanisms of corporate governance play a significant role in protecting minority shareholders and ensuring management efficiency. the corporate governance model in uzbekistan is similar to this model but has notable differences, such as the existence of golden shares, the absence of workers’ and employees’ participation in the supervisory board, among others. 3 hybrid (japan) the japanese corporate culture model has been shaped by national traditions and geopolitical characteristics. its main motto is “we are one.” this philosophy is reflected in corporate strategic objectives—improving employees’ living standards through lifelong employment, ensuring stability, and promoting equal pay for workers are leading values in japanese companies. american journal of business management, economics and banking volume 40 september2025 p a g e | 43 www.americanjournal.org from the data presented in the table, it can be emphasized that corporate governance models vary and can be described in different ways. however, their essence and function remain the same: the effective management of a company, which can only achieve positive outcomes through the proper and efficient organization of internal audit. furthermore, the participants of corporate governance play a crucial role in ensuring the effective operation of business entities. as mentioned above, there are several participants, each performing specific functions, and these functions differ from one another. this can be illustrated in the following diagram: figure 1. participants of corporate governance” the participants mentioned above form the foundation of corporate governance. these participants organize the management process and must work together effectively. only through mutual agreement, proper organization, and coordinated actions can the company achieve positive performance and reach its objectives. from the information above, the tables, the definitions of corporate governance, the perspectives on these various definitions, and the participants of corporate governance, we have examined and analyzed their interrelations and connections to the different models. in ensuring the effective organization of corporate governance, its principles play a crucial role. these principles comprise eight key elements, which are as follows: company shareholders employees (including internal auditors) government creditors others (customers, competitors, and suppliers) american journal of business management, economics and banking volume 40 september2025 p a g e | 44 www.americanjournal.org table 2 principles of corporate governance no. principle name principle description 1 maximizing shareholder value the company sets as its primary goal to ensure that shareholders receive maximum profit. 2 transparency of financial information the company’s accounts must be prepared in accordance with international standards, and information verified by auditors should be disclosed. 3 clarity of shareholders the identity of the company’s shareholders and owners must be clearly defined. 4 one share, one vote each share confers one vote to its owner. 5 rights and responsibilities of the executive body the executive body is elected by shareholders through voting and is accountable to them. 6 incentive system within the company compensation, bonuses, and similar incentives should be properly implemented within the company. 7 compliance with legislation companies must operate in accordance with the laws of the country in which they conduct business. 8 relationship between government and companies the government and companies should always work in harmony. if a management system is established based on the principles mentioned above and these principles are followed, the company’s operations can be considered well-organized and effective. among the principles of corporate governance discussed above, special attention is given to compliance with legislation. the seventh principle specifically addresses the importance of legal compliance. therefore, in order to further properly organize corporate governance and improve the performance of companies in the republic of uzbekistan, several regulatory documents have been adopted: resolution no. 176 of the cabinet of ministers of the republic of uzbekistan dated july 2, 2014, “on measures to further improve the corporate governance system in joint-stock companies”; law no. o’rq-370 of the republic of uzbekistan dated may 6, 2014, “on amendments and additions to the law of the republic of uzbekistan on joint-stock companies and protection of shareholders’ rights”; resolution no. 189 of the cabinet of ministers of the republic of uzbekistan dated april 19, 2003, “on measures to improve corporate governance in privatized enterprises”; resolution no. 3366 of the president of the republic of uzbekistan dated december 22, 2003, “on improving the system of economic management bodies”; decree no. 3202 of the president of the republic of uzbekistan dated january 24, 2003, “on measures to significantly increase the role and importance of the private sector in the economy of uzbekistan,” regarding its implementation and future introduction of corporate governance principles in privatized enterprises, approved by the cabinet of ministers of the republic of uzbekistan: model charter of the supervisory board of a joint-stock company; draft employment contract for hiring the head of the executive body of a joint-stock company. american journal of business management, economics and banking volume 40 september2025 p a g e | 45 www.americanjournal.org discussion if we focus on the essence of internal audit, it consists of the following components: figure 2. the essence of internal audit risk management – this involves all stages related to identifying, preventing, analyzing risks, and making decisions, which are carried out by internal auditors. these processes are outlined in the international standards for the professional practice of internal auditing (ippf), standard 2120 “risk management.” control – control is one of the most essential activities of business entities, and internal auditors carry it out with great diligence and thoroughness. corporate governance – this is a critical component closely linked to internal audit. maintaining corporate governance and internal audit in parallel ensures that the company achieves a high level of efficiency. numerous evidence and practical examples presented above support this assertion. conclusion in conclusion, it can be stated that internal audit cannot be conceived without corporate governance. both concepts-corporate governance and internal audit-are fundamental to the effective operation of business entities. they are complementary components: where corporate governance exists, internal audit is inherently present. even in cases where a formal internal audit unit is not established, its functions may be performed by the chief accountant, manager, or other personnel involved in related activities. we have observed that internal audit is an integral part of corporate governance. historically, the emergence of internal audit has been driven by the development of corporate governance itself. the english translation of corporate governance also highlights the importance of internal audit, and various scholars’ definitions consistently link internal audit to corporate governance. the classification of internal audit models demonstrates their dependence on corporate governance structures. we analyzed the role of internal auditors among the participants of corporate governance, studied the principles of corporate governance according to international standards, and examined how internal the essence of internal audit risk management controlcorporate governance” american journal of business management, economics and banking volume 40 september2025 p a g e | 46 www.americanjournal.org audit is embedded in each principle. furthermore, we reviewed the main regulatory documents adopted in uzbekistan and emphasized the importance of the corporate ethics code, which remains a pressing issue today. drawing on international best practices, it is evident that further improvements in corporate governance are necessary. our analyses and studies indicate that internal audit is the foundation, backbone, and inseparable component of corporate governance. to illustrate its essential role, examples, scholarly opinions, and tables were provided. recommendations: strengthen the integration of internal audit within corporate governance structures to ensure comprehensive risk management and operational efficiency. regularly update corporate governance and internal audit regulations in line with international standards to enhance transparency and accountability. promote corporate ethics codes as an integral part of corporate governance to foster a culture of integrity and responsibility. provide continuous training and development for internal auditors to enhance their effectiveness in monitoring and improving organizational performance. encourage collaboration among corporate governance participants, ensuring that shareholders, executives, and internal auditors work in alignment toward the company’s strategic objectives. references 1. law of the republic of uzbekistan “on auditing activities,” latest edition, february 25, 2021. 2. resolution no. 280 of the cabinet of ministers of the republic of uzbekistan dated may 5, 2021, “on the procedure for certification of internal audit service employees.” 3. resolution no. 416 of the cabinet of ministers of the republic of uzbekistan dated august 1, 2022, “model regulation on the internal audit service of ministries and agencies.” 4. resolution no. 176 of the cabinet of ministers of the republic of uzbekistan dated july 2, 2014, “on measures to further improve the corporate governance system in joint-stock companies.” 5. law no. o‘rq-370 of the republic of uzbekistan dated may 6, 2014, “on amendments and additions to the law of the republic of uzbekistan on joint-stock companies and protection of shareholders’ rights.” 6. resolution no. 189 of the cabinet of ministers of the republic of uzbekistan dated april 19, 2003, “on measures to improve corporate governance in privatized enterprises.” 7. resolution no. 3366 of the president of the republic of uzbekistan dated december 22, 2003, “on improving the system of economic management bodies.” 8. a.j. tuychiyev, i.n. qo’ziyev, r.m. haydarov, m.m. yakubov. internal audit. textbook. tashkent: “iqtisod-moliya” publishing, 2019, 368 pp. 9.international standard on auditing (isa) 520, “analytical procedures.” available at: www.iasplus.com 10. urton l. anderson, vichatl j. head, sridhar ramamoorti, cris riddle, mark salamasick, paul j. sobel. internal auditing: assurance & advisory services, fourth edition. isbn-13: 978-0-89413-9871, pp. 1–2. 11. robert r. moeller. executive’s guide to coso internal controls: understanding and implementing the new framework. hoboken, new jersey: john wiley & sons, inc., 2014, 316 pp. american journal of business management, economics and banking issn (e): 2832-8078 volume 41, october 2025 p a g e | 16 www.americanjournal.org the importance of digital technologies in the development of small business and private entrepreneurship phd, gofurov doston bokhromovich associate professor of the department of international finance, tsue orcid id:0009-0003-1759-3359 email: d.gofurov@tsue.uz a b s t r a c t k e y w o r d s this article is devoted to a comprehensive analysis of the possibilities, problems, and prospects for the development of the small business and private entrepreneurship sector of uzbekistan in the context of the digital economy. the study examines the mechanisms of the impact of digital transformation on small businesses, an analysis of the current situation, foreign experience, and best practices. the digital economy creates enormous opportunities for small businesses: expanding market boundaries, reducing operating costs, and introducing new business models. although digital transformation is developing rapidly in uzbekistan, the level of use of digital technologies in the small business sector lags behind the indicators of developed countries. the article presents proposals for developing digital literacy programs, creating financial support mechanisms, and improving infrastructure to accelerate the digitalization of small businesses. digital economy, small business, private entrepreneurship, digital transformation, ecommerce, digital technologies, small and medium-sized enterprises, digital platforms, online trading, digital payment systems, cloud technologies, digital marketing, startup ecosystem, digital literacy. introduction the second decade of the 21st century has ushered in a period of fundamental changes in the global economy. the rapid development and widespread implementation of digital technologies have covered all areas of economic relations. this process is having a significant impact, first of all, on the small business and private entrepreneurship sector. the digital economy is an economic activity based on information and communication technologies and digital platforms. its development opens up new ways for small businesses to overcome traditional economic barriers and seize new market opportunities. according to the world bank, small businesses that actively use digital technologies increase productivity by 15-25%1. 1world bank group. "digital dividends: world development report 2016". washington dc: world bank, 2023. american journal of business management, economics and banking volume 41 october2025 p a g e | 17 www.americanjournal.org today, small businesses are the main driving force of the global economy. according to the international labor organization (ilo), more than 90% of all enterprises in the world are small and medium-sized enterprises, which provide 60-70% of total employment.2in the context of digital transformation, these indicators are becoming even more important. small business and private entrepreneurship have also been identified as a strategic direction of economic development in the republic of uzbekistan. according to the results of 2024, more than 380 thousand small businesses operate in the republic, contributing 56,9% to the country's gdp. the state program "digital uzbekistan-2030" adopted by the state is aimed at stimulating the digital transformation of small businesses3. in today's global economy, digital technologies are key drivers of small business growth. according to mckinsey's analysis, fully digitalized small businesses are growing 2,5 times faster than those operating in traditional ways.4these statistics confirm the critical importance of digital transformation in the small business sector. the covid-19 pandemic has further increased the importance of digital technologies. according to reports from the world trade organization (wto), e-commerce volumes increased by 70% during the pandemic compared to 2019, which accelerated the transition of small businesses to digital platforms. this process is still ongoing and is expected to accelerate in the future. the development of the digital economy creates several key opportunities for small businesses. first, access to global markets, through which a small business can reach customers from anywhere in the world via the internet. second, significant reductions in operating costs through cloud technologies, automation and digital tools allow small businesses to operate efficiently without a large it infrastructure. third, it has become possible to establish direct contact with customers and better understand their needs. digital marketing tools allow small businesses to conduct targeted advertising campaigns with minimal costs. fourth, new technological opportunities have opened up for creating innovative products and services. modern technologies such as artificial intelligence, blockchain, and the internet of things (iot) have become available to small businesses. however, the digital transformation process also poses a number of challenges and limitations. the problem of the digital divide, cybersecurity risks, lack of qualified personnel and difficulties in adapting to technological changes are factors that hinder the development of small businesses. in addition, the rapid change in digital technologies requires small entrepreneurs to constantly learn and update. this requires additional time and financial resources. according to research company gartner, 60% of small businesses face financial and technological difficulties in the process of digital transformation5. the future prospects of small businesses in the digital economy depend on several factors. first, state support policies and regulatory mechanisms. second, the level of development of digital infrastructure. third, the level of attention paid to digital skills in the education system. 2international labor organization. "small and medium-sized enterprises and decent and productive employment creation". geneva: ilo, 2023. 3decree of the president of the republic of uzbekistan. "national digital transformation strategy "digital uzbekistan 2030". tashkent, 2022. 4mckinsey global institute. "digital america: a tale of the haves and have-mores". mckinsey & company, 2023. 5abdullayev yn, jurayev nt (2021). "digital economy in uzbekistan: opportunities and challenges". economics and finance, no. 5, pp. 23-31. american journal of business management, economics and banking volume 41 october2025 p a g e | 18 www.americanjournal.org according to the world economic forum (wef), 50% of the global economy is expected to be based on digital technologies by 2025.6this creates both new opportunities and new challenges for small businesses. working through digital platforms, using e-commerce, fintech solutions, and artificial intelligence technologies is becoming a necessity for the modern small entrepreneur. in developing countries like uzbekistan, the digital transformation process is becoming increasingly important. the digital development of small businesses can play a crucial role in achieving the country's goals of economic diversification and increasing exports. at the same time, the problem of the digital divide and the uneven distribution of technological opportunities create additional difficulties for entrepreneurs in small towns and rural areas. in modern economic literature, increasing attention is paid to the issues of interaction between the digital economy and small businesses. however, in-depth research in this area in local conditions is still lacking. in particular, in countries with transition economies such as uzbekistan, comprehensive analyses of the digital transformation of small businesses are rare. research methodology the methodological basis of this research work is based on the general principles of dialectical materialism, a systematic approach and modern methods of economic analysis. a comprehensive methodological approach was used in the study. the main methods used were: analysis and synthesis of literature, statistical analysis, comparative analysis, forecasting methods. the database included reports of the statistical agency, the central bank, the world bank and the oecd, as well as domestic and foreign scientific sources. literature review brynjolfsson e., & mcafee a. (2014) “the second machine age” provides an in-depth analysis of the impact of digital technologies on the economy. the authors highlight the factors that have helped the digital revolution grow small businesses, particularly the way technology has enabled small businesses to compete on an equal footing with large companies. they highlight the opportunities for democratizing digital platforms and lowering barriers to entry.7. parker g., van alstyne m., & choudary s. (2016) the book “platform revolution” examines in detail the mechanisms by which digital platforms create new opportunities for small businesses. the book analyzes the emergence of the platform economy, network effects, and the opportunities for small entrepreneurs to access global markets. the authors illustrate the impact of platforms such as airbnb, uber, and amazon on small business development with practical examples8. abdrakhmanova g.i., gokhberg l.m. (2020) the monograph “digital economy: 2021” provides an in-depth analysis of the development trends of the digital economy in russia and the cis countries. the authors substantiate the impact of digital technologies on the efficiency of small businesses with 6rakhmonova ma (2021). "the role of small and medium-sized businesses in the digital economy". modern economics, no. 4, pp. 67-74. 7brynjolfsson, e., & mcafee, a. (2014). the second machine age: work, progress, and prosperity in a time of brilliant technologies. ww norton & company, new york, 320 p. 8parker, g., van alstyne, m., & choudary, s. (2016). platform revolution: how networked markets are transforming the economy and how to make them work for you. ww norton & company, new york, 352 p. american journal of business management, economics and banking volume 41 october2025 p a g e | 19 www.americanjournal.org quantitative indicators. in particular, the book shows the impact of e-commerce development, digital payment systems and cloud technologies on the activities of small businesses9. petrov a.p., ivanov s.n. (2019) the article “small business in the conditions of digitalization” provides a comprehensive analysis of the problems and opportunities of small business in the context of digitalization. the researchers identified the main challenges in the digital transformation of the russian small business sector as financial constraints, staff shortages, and weak technical infrastructure, and proposed ways to overcome them.10. golubenskaya n.p. (2020) in her study “the impact of digital technologies on the development of entrepreneurship” analyzed the impact of digital technologies on entrepreneurship based on empirical data. the author analyzed the activities of more than 500 small businesses and found that the profits of enterprises that actively use digital technologies are on average 35-40% higher11. abdullayev y.n., jurayev n.t. (2021) the article “digital economy in uzbekistan: opportunities and challenges” examines the main directions of digital economy development in the country. the authors assessed the level of digitalization of the small business sector of uzbekistan and identified the main problems and prospects. they paid particular attention to the problem of weak internet infrastructure in rural areas.12. kholmatov b.r. (2020) the study “issues of digitalization of small business and entrepreneurship” provides an in-depth analysis of the processes of digitalization of small business in uzbekistan. the author studied the level of use of digital technologies by small businesses and identified the most effective approaches. in particular, the study shows the impact of e-commerce platforms on the development of local small businesses13. rahmonova m.a. (2021) the article “the role of small and medium-sized businesses in the digital economy” analyzes the role and importance of the small and medium-sized business sector in digital transformation. the author examined the development opportunities of small businesses in the uzbek economy through digitalization and assessed the effectiveness of state support measures14. analysis and results the concept of the digital economy is one of the most important areas of modern economic science and practice. the emergence and development of this concept has gone through several stages, with new theoretical approaches and practical interpretations being formed at each stage. in modern economic literature, the digital economy is defined from various perspectives. according to the european commission, the digital economy is a set of all economic activities supported by digital 9abdrakhmanova g.i., gokhberg l.m., dudorova o.yu. i dr. (2020). digital economy: 2021: statistical collection. niu "vysshaya shkola ekonomiki", moscow, 124 p. 10petrov a.p., ivanov s.n. (2019). financial business and economic conditions of digitization: problems and prospects. // economic science, no. 12(181), p. 45-52. 11np golubetskaya. (2020). влияние цифровых технологий на развитие малого предпринимателства в россии. // vestnik ekonomiki, no. 3(47), p. 78-84. 12abdullayev yn, jurayev nt (2021). digital economy in uzbekistan: opportunities and challenges. // economics and finance, no. 5(136), pp. 23-31. 13kholmatov br (2020). issues of digitization of small business and entrepreneurial activities. // business expert, no. 7(98), pp. 45-52. 14rakhmonova ma (2021). the role and importance of small and medium-sized businesses in the digital economy. // modern economics, no. 4(76), pp. 67-74. american journal of business management, economics and banking volume 41 october2025 p a g e | 20 www.americanjournal.org technologies. the oecd defines it as an economic activity that uses the use and analysis of digital data to create new business models, develop new processes and products. the fundamental differences between the traditional and digital economies are not only technological, but also structural, institutional and cultural. while in the traditional economy the main source of value creation is material resources and labor, in the digital economy information, knowledge and algorithms play a key role. this change is especially important for small businesses, because even if they do not have large physical assets, they can compete with large companies through intellectual and information resources. barriers to entry have also changed significantly. in the traditional economy, entering a new market requires large capital investments, licenses and other expensive procedures. in the digital economy, these barriers have been significantly reduced through api technologies and platforms. for example, a small business can start providing services on a global scale with minimal costs using services such as amazon aws or google cloud. the digital transformation process typically consists of several stages. the first stage is digitization, where analog processes are converted to digital format. the second stage is digitization, where existing business processes are improved using digital technologies. the third stage is full digital transformation, where the entire business model is rebuilt on a digital basis. the final stage is digital innovation, where new digital products and services are created. the level of digital adoption by the small business sector in uzbekistan is still low compared to developed countries, and there is significant potential in this area. small businesses are achieving varying degrees of success in adopting various digital solutions. according to the statistics agency of the republic of uzbekistan, by the beginning of 2024, the number of small businesses and private entrepreneurship entities in the country amounted to 465,300.15however, their level of use of digital technologies still remains average. table 1 small businesses' use of digital technologies(in %) technology type 2022 2023 2024 growth rate foreign average (%) social media presence 53,1 59,8 68,3 +28,6% 78,4 accepting online payments 26,9 31,2 34,7 +29,0% 67,8 electronic accounting programs 34,5 37,8 41,2 +19,4% 72,3 using cloud services 14,6 17,1 19,8 +35,6% 45,7 selling on e-commerce platforms 18,7 22,4 26,5 +41,7% 52,9 using crm systems 10,4 11,7 12,3 +18,3% 38,6 website ownership 23,8 27,1 32,4 +36,1% 71,2 digital marketing 19,2 24,7 29,8 +55,2% 64,3 using mobile apps 15,7 19,3 24,1 +53,5% 41,8 big data analysis 3,2 4,1 5,7 +78,1% 23,4 *source: world bank, statistical agency under the president of the republic of uzbekistan (2024). “statistical collection on the use of information and communication technologies”. tashkent: uzstat publishing house. 15statistics of the agency for statistics of the republic of uzbekistan for 2024 "small business and entrepreneurship" american journal of business management, economics and banking volume 41 october2025 p a g e | 21 www.americanjournal.org the most common digital activity is a presence on social media. facebook, instagram, telegram and other social platforms have become an effective tool for small businesses to directly communicate with customers, promote products and services, and build a brand. small entrepreneurs are using these platforms not only for marketing purposes, but also to advise customers, take orders, and provide postsales services. especially during the pandemic, sales through social media have shown a significant increase. the implementation of online payment systems is a more complex issue for small businesses. despite the widespread use of local payment systems such as click, payme, uzcard and others, a significant part of small businesses still prefer to work with cash. among the reasons for this are the lack of technical knowledge, fear of additional commission payments and loyalty to traditional business methods. however, with the growing demand for contactless payment methods from customers, this issue remains an important choice for small businesses. the use of electronic accounting software is also slowly developing among small businesses. most small entrepreneurs still continue to work with traditional paper documents and simple excel spreadsheets. although the number of users of professional accounting software such as 1c, quickbooks, iman, buxpro is growing, this process is slow. the main obstacles are the cost of the programs, the complexity of learning, and resistance to changing existing systems. the digital transformation process of uzbekistan's small business sector has shown significant dynamics during 2020-2024. this five-year period includes the covid-19 pandemic, the activation of state digitization programs, and the impact of global digital trends on the local market (table 2). e-commerce platforms showed the highest growth rate – 24,0 percent annually. while in 2020 only 11,2 percent of small businesses sold on online platforms, by 2024 this number will reach 26,5 percent. the main driving force of this growth was the popularity of online shopping, which emerged during the pandemic. digital marketing also has a high growth rate – 24,0 percent per year. the growth from 12,6 percent in 2020 to 29,8 percent in 2024 indicates that small businesses are changing their approach to marketing. the convenience and relatively low prices of platforms such as google ads, facebook ads, yandex.direct have attracted small entrepreneurs. the effectiveness of advertising, the ability to track results in real time, and flexibility have become the main advantages of digital marketing tools. especially during the covid-19 era, the ineffectiveness of traditional advertising channels has increased attention to digital marketing. table 2 the rate of adoption of digital technologies in small businesses** technology 2020 (%) 2021 (%) 2022 (%) 2023 (%) 2024 (%) cagr* social media 42,1 48,9 53,1 59,8 68,3 12,8% online payments 19,8 23,4 26,9 31,2 34,7 15,1% e-invoice programs 28,7 31,2 34,5 37,8 41,2 9,5% cloud services 8,9 11,3 14,6 17,1 19,8 22,1% e-commerce platforms 11,2 14,8 18,7 22,4 26,5 24,0% crm systems 6,8 8,1 10,4 11,7 12,3 16,0% websites 18,4 21,7 23,8 27,1 32,4 15,2% digital marketing 12,6 15,8 19,2 24,7 29,8 24,0% *cagrcompound annual growth rate (average annual growth rate) american journal of business management, economics and banking volume 41 october2025 p a g e | 22 www.americanjournal.org **source: oecd, world bank, statistical agency under the president of the republic of uzbekistan (2024). “statistical collection on the use of information and communication technologies”. tashkent: uzstat publishing house. the use of cloud services also showed a high growth rate – 22,1 percent per year. the growth from only 8,9 percent in 2020 to 19,8 percent in 2024, although the absolute number is low, shows the prospects for this industry. during the pandemic, the need for remote work, storing documents in the cloud, and collaborating with a team made these technologies popular. services such as google drive, dropbox, onedrive, and the local uzcloud provided small businesses with the opportunity to securely store data and access it from anywhere. the use of crm systems showed a slower but steady growth of 16.0 percent per year. the growth from 6,8 percent in 2020 to 12,3 percent in 2024 means that small businesses are beginning to feel the need to systematize their customer relationships. the proliferation of systems such as amocrm, bitrix24, hubspot has increased the importance of storing customer data, tracking sales and managing marketing campaigns. however, there is still great potential in this area. the digital transformation process is not developing at the same pace across different sectors of the small business sector in uzbekistan. the specific characteristics of each sector, customer demand, technical capabilities, and traditional business practices directly affect the speed and depth of digitalization (table 3). it services industryis the absolute leader, currently with a digitalization level of 89,7 percent. this result is natural, since it companies are closely related to digital technologies by the nature of their activities. companies providing software development, web design, and digital marketing services are almost completely digitalized. by 2025, this figure is projected to reach 95,3 percent, and by 2030, 98,9 percent. the investment need in this area is relatively small, $156,4 million, since the basic infrastructure already exists. the remaining small gap is mainly related to the adoption of new technologies and retraining of employees. table 3 digital transformation rate and forecasts by industry* industry current digitization (%) 2025 forecast (%) 2030 forecast (%) investment needs (mln$) retail 72.3 84.7 94.2 245.8 it services 89.7 95.3 98.9 156.4 food services 54.8 69.2 82.6 187.3 professional services 67.8 79.4 89.1 134.7 transport/logistics 47.2 62.8 78 *source: oecd, world bank, statistical agency under the president of the republic of uzbekistan (2024). “statistical collection on the use of information and communication technologies”. tashkent: uzstat publishing house. retail ranks second with a digitalization rate of 72,3 percent. this sector has experienced the greatest shift during the pandemic. online stores, e-commerce platforms, digital payment systems, and digital communication with customers have become widespread. grocery stores, clothing stores, and home appliance retailers have actively introduced sales and delivery services via telegram bots and instagram. it is projected to reach 84,7 percent by 2025 and 94,2 percent by 2030. the investment american journal of business management, economics and banking volume 41 october2025 p a g e | 23 www.americanjournal.org requirement of $245,8 million is mainly related to the modernization of logistics systems, automation of warehouses, and improvement of customer service systems. professional services the level of digitalization in the sector is 67,8 percent. small companies providing legal services, accounting, consulting, and educational services are actively using cloud technologies, video conferencing, online document management, and digital communication tools with clients. remote consulting, online training, and virtual meetings have become standard practice during the covid-19 pandemic. it is expected to reach 79,4 percent by 2025 and 89,1 percent by 2030. the investment of $134,7 million is mainly needed for modern software, professional platforms, and staff retraining. transport and logistics the sector has a 47,2 percent share. freight transport, taxi services, and courier services are actively using gps navigation, online ordering, digital payments, and customer tracking systems. platforms such as yandex taxi and mytaxi have accelerated the digitalization of this sector. it is expected to reach 78,5 percent by 2030, which is associated with the introduction of autonomous transport technologies and smart logistics systems. health care the small business sector has a digitalization level of 38,9 percent. private clinics, dentistry, diagnostic centers are using electronic cards, online appointment systems, telemedicine and digital medical devices. remote consultation and online monitoring systems have become widespread during the pandemic. it is projected to reach 73,6 percent by 2030. the high investment need of $420,8 million is related to modern medical equipment, software and staff retraining. agriculture has the lowest level of digitalization at 29,4 percent. this sector is traditional in nature and is slow to adopt technological innovations. however, smart farming, drones, iot sensors, weather data analysis and online trading platforms are gradually making inroads. it is expected to reach 58,7 percent by 2030, which is a relatively slow growth. the investment of $ 380,5 million is mainly needed for modern agricultural technologies and farmer training programs. conclusion and suggestions based on the results of the research, the following proposals were developed to accelerate the digital development of small businesses and entrepreneurship in uzbekistan: it is necessary to increase digital literacy among the population. to do this, it is necessary to develop and implement special digital literacy programs for small businesses. these programs should cover all areas, from basic computer skills to working on e-commerce platforms, digital marketing and establishing digital communication with customers. it is recommended to establish training centers at the regional and district levels, create online courses, and introduce mentoring programs. it is necessary to further expand financial support mechanisms and establish a system of preferential loans, grants and subsidies for small businesses for digital transformation. in addition, it is advisable to develop state-guaranteed loans, tax incentives and leasing programs for the introduction of digital technologies. it is necessary to expand the network of venture capital funds and angel investors to develop the startup ecosystem. in order to improve infrastructure, it is important to improve the quality of the internet network in rural areas, introduce 5g technology, and reduce the cost of digital communication services. it is also necessary to develop data centers, strengthen cloud services infrastructure, and strengthen cybersecurity systems. american journal of business management, economics and banking volume 41 october2025 p a g e | 24 www.americanjournal.org it is necessary to establish free consulting services on digital technologies for small businesses, disseminate and popularize successful experiences through the development of educational and consulting services. it is recommended to develop professional certification programs and create national standards for digital skills. it is necessary to support the development of digital platforms and local e-commerce platforms, create special departments to promote small business products, and expand export opportunities. it is advisable to develop programs to help access international platforms and bring product quality to international standards. references 1. world bank (2023). world bank group. "digital dividends: world development report 2016". washington dc: 2. ilo (2023). international labor organization. "small and medium-sized enterprises and decent and productive employment creation". geneva. 3. decree (2020). decree of the president of the republic of uzbekistan no. pf-6079 dated october 5 “on approval of the “digital uzbekistan 2030” strategy and measures for its effective implementation”. tashkent. 4. mckinsey (2023). global institute. "digital america: a tale of the haves and have-mores". mckinsey & company. 5. abdullayev yn, jurayev nt (2021). “digital economy in uzbekistan: opportunities and challenges”. economics and finance, no. 5, pp. 23-31. 6. rakhmonova ma (2021). “the role of small and medium-sized businesses in the digital economy.” modern economics, no. 4, pp. 67-74. 7. brynjolfsson, e., & mcafee, a. (2014). "the second machine age: work, progress, and prosperity in a time of brilliant technologies." ww norton & company, new york, 320 p. 8. parker, g., van alstyne, m., & choudary, s. (2016). "platform revolution: how networked markets are transforming the economy and how to make them work for you." ww norton & company, new york, 352 p. 9. abdrakhmanova g.i., gokhberg l.m., dudorova o.yu. i dr. (2020). digital economy: 2021: statistical collection. niu "vysshaya shkola ekonomiki", moscow, 124 p. 10. petrov a.p., ivanov s.n. (2019). financial business and economic conditions of digitization: problems and prospects. // economic science, no. 12(181), p. 45-52. 11. np golubetskaya (2020). влияние цифровых технологий на развитие малого предпринимателства в россии. // vestnik ekonomiki, no. 3(47), p. 78-84. 12. abdullayev yn, jurayev nt (2021). digital economy in uzbekistan: opportunities and challenges. // economics and finance, no. 5(136), pp. 23-31. 13. kholmatov br (2020). issues of digitization of small business and entrepreneurial activities. // business expert, no. 7(98), pp. 45-52. 14. rakhmonova ma (2021). the role and importance of small and medium-sized businesses in the digital economy. // modern economics, no. 4(76), pp. 67-74. 15. statistics of the agency for statistics of the republic of uzbekistan for 2024 "small business and entrepreneurship" american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 40 www.americanjournal.org the influence of digital communication on the grammar and vocabulary of the modern russian language гулямова дилфуза ибодуллаевна старший преподаватель университета информационных технологии и менеджмента gulyamovadilfuza @gmail.com a b s t r a c t k e y w o r d s the article discusses the influence of digital communication on the formation of new lexical and grammatical models of the modern russian language. the author analyzes the processes that occur as a result of the active use of instant messengers, social networks and network platforms. special attention is paid to the phenomena of abbreviations, acronymization and hybridization of language units. the mechanisms of penetration of internet jargon and anglicisms into the everyday speech of native speakers are considered. grammatical structures, which manifests itself in the simplification of syntax and changes in the norms of the design of written speech. the role of the speed of information exchange as a factor influencing the economy of language resources is emphasized. based on the analysis of digital discourses, new communicative strategies are identified, due to the specifics of virtual communication. the author shows that the digital environment is becoming an independent language space that forms its own norms and stylistic rules. the conclusion is made about the need for further study of the dynamics of internet communication to understand the ways of development of the modern russian language. it has been established that digital communication is beginning to have a systemic impact not only on vocabulary, but also on grammar. the paper emphasizes the importance of adapting linguistic analysis to the new conditions of language functioning. digital communication, internet discourse, neologisms, anglicisms, abbreviations, acronyms, network jargon, hybridization of vocabulary, transformation of grammar, simplification of syntax, language dynamics. introduction in the modern world, digital communications — social networks, instant messengers, blogs — are having an increasingly noticeable impact on the russian language. new lexical units, abbreviations and anglicisms are emerging, syntactic structures are changing, and the language is becoming more economical and dynamic. this transforms not only vocabulary, but also grammatical norms: abbreviations, emojis, hashtags affect the construction of sentences. which accelerates the american journal of business management, economics and banking volume 42 november2025 p a g e | 41 www.americanjournal.org penetration of neologisms. the use of digital forms of communication leads to a simplification of morphology and inclinations to the colloquial form in written speech. these processes give rise to new stylistic trends: written speech becomes closer to oral speech, and business speech acquires elements of colloquialism. at the same time, there is a constant borrowing of terms from english – such as "like", "repost", "stream" – which enriches, but also causes disputes about the "purity" of the russian language. despite this, it is important to maintain normative language structures so as not to lose clarity and accuracy. in every country, including uzbekistan, where russian is widely used, such changes reflect cultural and sociolinguistic transformations. the law of the republic of uzbekistan "on the state language of the republic of uzbekistan" of october 21, 1989 no. 3561xi establishes that uzbek is the state language, but the right to use the native language and other languages, including russian, is not infringed.[ 1] thus, the impact of digital communication on the russian language in uzbekistan is of particular importance in the context of the national language policy. methodology several methods were used to analyze the impact of digital communication on the grammar and vocabulary of the russian language. firstly, a corpus analysis of texts from social networks, instant messengers and blogs was carried out. secondly, a comparative method was used: the norms of the modern russian language were compared with the actual use in digital texts.[ 2] third, a sociolinguistic questionnaire was used among users of different age groups to identify trends. the content of uzbek internet platforms, where the russian language is actively used, was also taken into account. methods of quantitative analysis made it possible to determine the frequency of new words and constructions. qualitative analysis revealed the features of their use and stylistic changes. all data were systematized to identify patterns in the transformation of grammar and vocabulary. such an integrated approach ensured the objectivity and completeness of the study. analysis and results digital communication has a noticeable impact on the grammar and vocabulary of the modern russian language. based on the corpus analysis of texts from social networks and instant messengers, the following trends have been identified. firstly, there is an active use of anglicisms and borrowings from the internet. words such as "like", "tag", "repost", "stream" are widely used in everyday communication. at the same time, in foreign practice, for example, in russia and the cis countries, such borrowings are gradually adapted to the morphological rules of the russian language (for example, "like", "repost"). [4] secondly, abbreviations and abbreviations become an integral part of written speech. in messengers, you can often find "sps" (thank you), "ok" (okay), "nook" (well). a similar trend is observed in foreign countries, where, for example, "lol", "brb", "omg" are popular in english-language texts. thirdly, the simplification of grammatical constructions. in digital communication, users often omit sentence parts, conjunctions, and punctuation marks. this results in a more conversational form of writing. in uzbekistan, where russian is widely used in education and business, such simplifications affect the style of official correspondence and e-mails. american journal of business management, economics and banking volume 42 november2025 p a g e | 42 www.americanjournal.org sociolinguistic questionnaires showed that young people actively use new words and simplified forms, while the older generation adheres to the traditional norm. this creates an intergenerational gap in the language. [5] morphological changes are also noticeable: new words decline according to familiar patterns or remain unchanged. for example, "stream" in uzbekistan is sometimes used without declension, while in russia "streams" and "streams" are more often used. official documents and training materials maintain strict standards, but e-mail correspondence demonstrates elements of conversational speech. in digital communication, emojis and graphic elements are widely used to replace words or emotions. this phenomenon is also found in international practice, for example, in the usa, europe and the cis countries. frequency analysis showed that new internet terms appear faster than established language norms. in uzbekistan, thanks to the active use of the russian language on the internet, these trends can be traced in blogs, forums and instant messengers. for clarity, a graph of the distribution of new words by frequency of use over the past 5 years was built:[6] based on the analysis, it can be concluded that digital communication: 1. accelerates the penetration of new words and constructions; 2. contributes to the simplification of grammatical rules; 3. changes the stylistic norms of writing; 4. forms differences in the language of different generations; 5. reflects global trends in borrowing and adaptation. comparison with foreign practice shows that these processes are universal, but have local features. in uzbekistan, the impact of digital communication on the russian language is especially noticeable in the internet space and the educational sphere. thus, digital technologies are becoming a factor in the transformation of the russian language, affecting vocabulary, grammar and writing style. it is necessary to continue monitoring changes in order to preserve the language culture and the correct use of the russian language in the professional and educational environment. [7] conclusion and proposals the influence of digital communication on the grammar and vocabulary of the modern russian language is obvious and multifaceted. analysis of texts from social networks, instant messengers and blogs has shown the active penetration of anglicisms and new internet terms. abbreviations, abbreviations and emojis are becoming an integral part of written speech. morphological and syntactic changes indicate the approximation of the written language to the oral form. new forms, while the older generation more often adheres to normative speech. in uzbekistan, the russian language remains important in education, business and media, which makes the study of these changes relevant to the national language policy. comparison with foreign practice shows that the trends are global, but have local features. based on the study, the following conclusions can be drawn: digital technologies accelerate the borrowing of new words, simplify grammatical constructions and affect the style of written speech. american journal of business management, economics and banking volume 42 november2025 p a g e | 43 www.americanjournal.org these processes create the need for constant monitoring of changes and the development of methodological recommendations for teachers and communication specialists. development of glossaries of new terms; improving the language culture of internet users; conducting seminars and webinars on competent digital communication.it is also recommended to take into account intergenerational differences and develop adapted forms of education. it is important to preserve the normative norms of the language while using innovative forms of communication. monitoring changes in the language will allow you to respond to new trends in a timely manner and adjust teaching methods. thus, digital communication is not only a source of change, but also a stimulus for the development and adaptation of the russian language in the context of globalization. the application of the proposed measures will make it possible to harmoniously combine traditional norms and modern forms of communication, ensuring the sustainability and development of language culture in uzbekistan and abroad. references 1. law of the republic of uzbekistan "on the state language" – no 3561xi, adopted on october 21, 1989.. 2. romanova, g. v. "the influence of digital discourse on the formation of a new linguistic reality". vestnik vsu. no 4 (2017), pp. 6–14. 3. romanova, i. v.; konnova, o. v.; glazkova, a. v. "the impact of social networks on language and communication". russian linguistic bulletin, № 3 (51), 2018. 4. ivanova, m. v.; klushina, n. i. "russian language in the modern internet space: dynamic processes and development trends". russian language studies, rudn journal. 2019. 5. pervukhina, s. v.; churikov, m. p. "digital communication in linguistic research". russian linguistic bulletin, № 2 (26), 2020. 6. yedlichko, a. i. "language norms in the digital age". cyberleninka, 2020. 7. seisenbayeva, a. t. "dynamics of the language norm in the era of digital communication: between conservation and innovation". young scientist, no 20.1 (571.1), 2021, pp. 20–23 (in russ.). 8. kosheleva, t. i. "on the question of the influence of the language of internet communication on the linguistic consciousness of a modern native speaker of the russian language". 2022. 9. pashentsev, d. a.; zaloilo, m. v. (eds.) yazyk pravotvorchestva v usloviyakh digitalizatsii obshchestvennykh otnosheniy [the language of lawmaking in the context of digitalization of public relations]. institute of legislation and comparative law under the government of the russian federation. moscow, infram publ., 2019. 10. voronkova, l. s. "transformation of the language of lawmaking under the influence of global digitalization". 2023. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 182 www.americanjournal.org organizing the audit system in uzbekistan on the basis of information technologies: problems and solutions meliev israel ismailovich professor of tashkent state university of economics email: meliyevi755@gmail.com orcid: 0000-0002-0976-7406 a b s t r a c t k e y w o r d s this article is devoted to the problems of organizing audit activity in uzbekistan on the basis of information technologies and directions for their elimination. relevance and necessity of using information technologies, review of literature on the subject, analyzes conducted on the subject and its results, conclusions obtained on the basis of research results, and author's suggestions for improvement of this field are described. also, in the article, the types of software used in international audit practice, the factors affecting the non-use of audit software in the audit process, the problems of using modern software in the audit process, the software the procedure for forming the auditor's opinion by introducing evidence, the opportunities that can be achieved as a result of the use of information technologies in the audit are described based on the author's opinions. audit activities, information technology, audit software, audit review, audit evidence, auditor opinion, audit report, audit services, it audit, financial reporting audit, audit automation, digitalization, auditor, audit organization, audit team, expert, international standards of audit, audit methods and practices. introduction today, any audit organization feels a great need to organize its activities on the basis of information technologies. as a result of the creation of a database and the formation of audit reports of various complexity, modern audit electronic programs help to avoid errors in the audit, save work time and quickly obtain the necessary information. practice shows that it is better to buy audit software from professional firms with extensive experience and reputation in automating audits, licenses and quality certificates of the programs sold. when choosing a program, it is necessary to take into account what audit organization and what audit objects it is intended to check, or pay attention to what field it belongs to. in this regard, it is worth noting that in the decision of the president of the republic of uzbekistan dated september 19, 2018 "on measures to further develop audit activities in the republic of uzbekistan" no. pq3946the task of developing the "audit" software complex of the ministry of economy and finance of the republic of uzbekistan, designed for mutual electronic cooperation with auditing organizations and republican public associations of accountants and auditors, and in american journal of business management, economics and banking volume 37 june2025 p a g e | 183 www.americanjournal.org accordance with itthe "audit" software complex, which provides for the creation of the web service "private cabinet of the auditing organization" and "private cabinet of the public association of auditors", was developed and put into practice. this is one of the macro-level measures to ensure the transparency of the activities of audit organizations and the introduction of information and communication technologies in the sphere of their cooperation with state bodies. however, today it is one of the requirements of international standards to organize and conduct audits in a fully computerized environment.it is through software that helps to find opportunities to optimize audit processes and spend less money on information systems, evaluates the existing information resources in accordance with the current and future goals of the organization, and based on the results of this evaluation, allows organizations to use the available opportunities to the maximum and avoid unnecessary costs. recommends solutions. the implementation of new software in the audit helps to reduce the cost of financing the information department, optimize performance and eliminate the "weak" links that prevent development. review of literature on the subject raising the economy to a new modern level requires the operation of the transactions and management system in chicken entities on the basis of modern information technologies. in uzbekistan today, the legal foundations of issues such as electronic government and electronic signature have been created. today, information technologies are widely used in accounting and auditing services. on the other hand, as a result of effective use of the automated system of economic information by the auditor, time is saved during inspections, and the quality of the conducted control increases. for this, the auditor is required to have special knowledge and skills and to have practical experience in the type of auditing software, software and mathematical support, and electronic data processing system. although not enough research has been conducted on the use of information technologies or the organization and implementation of audits based on software in the audit activity of uzbekistan, theoretical and methodological aspects of the introduction of information technologies in audits have been studied by some uzbek researchers. in particular, by the uzbek researcher n. dalibaevthe issues of introducing the it-audit service into the practice of uzbekistan have been researched and the features of this service's practical application have been described.[1]. i. meliev, one of the uzbek economists, researched the directions of organizing and implementing audits based on the possibilities of information technologies in pandemic and remote working conditions.[2]. economist sh.k.umarova in her research zthe features of conducting an audit using modern information technologies have been studied [3]. belarusian scientists nvhomolko and lapopkova researched the methodology of organization and implementation of automated audit [4]. also, another economist russian scientist katrukhan researched the possibilities of auditing on the basis of information technology [5]. the features of conducting an audit in the information technology environment were studied by the russian scientist basharifov[6]. a group of uzbek scientists damirzaev, ijbozorova andfxmamasidikova studied the prospects of development of it audit in the practice of the world and uzbekistan and the directions of its introduction into audit practice, and gave scientific and practical recommendations in this field [7]. american journal of business management, economics and banking volume 37 june2025 p a g e | 184 www.americanjournal.org analysis and results in the current global auditing practice, special types of auditing software are widely used together with office programs, regulatory and legal information systems, accounting software, and financial analysis software. in our opinion, due to the complexity of the tasks to be solved in the automation of audit activities, the effectiveness of the software application is directly dependent on its introduction and training of users. as a result of the research, it was found that in the audit practice of russia and developed european countries, quality audits are carried out in a short period of time and procedures using the most professional software tools, such as auditnet, itaudit:auditor, audit xp "kompleks audit" and "express audit:prof" (1 -table). table 1 used in international auditing practice types of software1 no program purpose of the program manufacturer publication year 1 auditnet automation of audit activities "new effective technology" 2009 2 it audit: auditor audit automation in a complex volume "master-soft" llcwww.audit-soft.ru 2005 3 audit xp "complex audit" automation of audit activities "goldberg-soft" company www.auditxp.ru 2005 4 "express audit: prof a complex system of auditing automation "termika" np baryshnikov consulting group.www.termika.ru 2004 created in uzbekistantypes of software 5 auditsoft commercial banks and business entities are designed to automate internal audit services and audit companies. chamber of auditors of uzbekistan (karimov nf) 2007 6 audit sampling it is intended for the audit of credit activities of commercial banks and activities of central bank branches sakhabov ou, aabubnov 2008 7 first-audit it is designed for conducting internal audits in commercial banks and large manufacturing enterprises karimov jf, karimov xx 2010 the use of audit software in the course of audits allows the auditor to perform the following tasks with quality and in a short period of time: checking the balances of transactions and bank account numbers carried out at the cliententerprise through a computer database; the ability to perform analytical operations in the computer database to determine the differences between documents and actual assets and funds; checking the database of the audited economic entity; the possibility of testing technical, mathematical and informational software used in the 1prepared by the author http://www.audit-soft.ru/ http://www.auditxp.ru/ http://www.termika.ru/ american journal of business management, economics and banking volume 37 june2025 p a g e | 185 www.americanjournal.org activities of the audited economic entity. however, in our opinion, the above-mentioned programs are not being used effectively and purposefully in the audit practice of uzbekistan due to the following factors (table 2). table 2 factors influencing the non-use of audit software during an audit2 all the above-mentioned factors, on the one hand, are necessary for the development of the quality level of services provided in the field of auditing on the basis of information technologies, and on the other hand, they serve as a subject of controversy between auditors and software developers. it should be noted that no software can replace the auditor in auditing. however, it is advisable to use the capabilities of specialized audit software in the audit process. today, one of the main requirements of the customers of audit services is to ensure that the audit services are performed with high quality, in a short period of time or without disrupting (impacting) the activities of the enterprise, and at low prices. in turn, in order to ensure the fulfillment of the above requirements by auditing organizations, it is necessary to have specialists with knowledge and experience in the fields of accounting, economic analysis and auditing, to provide auditing services with modern software tools (auditnet, itaudit:auditor , auditxp "complex audit", express 2prepared by the author a factor type of (reasons). content of factors to generalize − low level of development of this market at the initial stage of auditor activity development; − the limited possibility of complete documentation of the audit process and the need to form a professional opinion, as well as the specificity of the required audit activity; − auditors' computer literacy is not at the required level; complex formation of the audit process; the fact that the normative legal basis of auditor activity is very complex and large in size; – absence of a unified approach to auditing in practice; obtaining different results during the inspection period; – the presence of various complexities in their systematization when preparing an audit report; – as a result of the transition to conducting audits at the level of international standards, the volume of auditing services related to the field will increase; – strengthening of internal and external control over the quality of provided audit services; technological − application of various accounting software by the audited enterprise; − the (portable) nature of the audit service being carried out on the way to the cliententerprise facilities; − specialization of clients of audit firms in various sectors. this means that it does not allow to adapt the automated audit programs to the operational characteristics of various audit objects in the context of changes in legal requirements. – the need for auditors to learn different software in order to master the software bases used by clients; compliance with confidentiality and protection requirements of audit results; limitation of the possibility of electronic archiving of the final documents of the work and inspection by using an electronic digital signature. american journal of business management, economics and banking volume 37 june2025 p a g e | 186 www.americanjournal.org audit: prof, auditsoft, audit sampling,teams, leap and first-audit), it is required to perform strategic tasks such as the use of low-cost methods and tools in the provision of audit services. it should be noted that there are the following problems in the use of software in audits in today's auditing practice of uzbekistan (figure 1) figure 1. problems of using modern software in auditing processes3 in our opinion, in order to eliminate the above problematic aspects and ensure the provision of audit services based on software, software in uzbek language that complies with the requirements of the national legislation of uzbekistan, features of modern audit software it is desirable to develop the supply. the development of software allows auditors to conduct inspections remotely, that is, without affecting the work of the company's managers, and of course on a short-term and low-cost basis. in our opinion, it is appropriate to incorporate the following capabilities that ensure the effectiveness of evidence collection in the audit software: 1. creating the possibility to run the software on the basis of the internet network. in this case, all members of the audit can receive information about the activities of the audited entity remotely based on their electronic keys, analyze them, and send analytical data to the relevant responsible auditors for the purpose of summarizing. we believe that it is necessary; 2. in the software, it is desirable to create an opportunity to set a fixed period (time) for the members of the audit working group to complete the relevant audit tasks. this allows the auditor and the audit organization to complete the audit process within the time limit (defined in the audit contract); 3. the software contains not only audit information on the subject for which the audit service is 3 prepared by the author problems of using modern software in auditing processes the high economic value of modern audit software, their installation in audit organizations, the high cost of training auditors in the use of software lack of auditor-specialists with the capacity (knowledge, skills and abilities) to use (use) modern audit software the fact that modern auditing software meets the requirements of international standards of auditing (the presence of different features of the legislation of uzbekistan), in addition, most of the software is specialized in russian and english languages in modern auditing software, accounting documents specified in the legislation of uzbekistan, opinions (attitudes) of officials who made mistakes or deficiencies, and documents reflecting the results of inspections are not included, etc. american journal of business management, economics and banking volume 37 june2025 p a g e | 187 www.americanjournal.org provided, but also information on the internal structural structure of the audit organization (internal regulatory documents), exchange of information on the execution of internal structural tasks, and it is necessary to create an opportunity to exchange information. this provides an opportunity to ensure executive discipline in the activity of the audit organization and to control the state of execution of internal regulatory documents (orders, orders and instructions) by the management of the organization and to provide them with information on these documents in a timely manner. provides; 4. creation of new assignment documents in the software, incoming and sent documents (assignments) on audit assignments, sending audit assignments to the members of the audit working group, performing the duties of monitoring the status of the audit assignments on time and quality it is necessary to have opportunities; 5. regulatory documents regulating accounting and auditing activities in the software, international auditing standards, national accounting standards and international standards of financial reporting, internal standards of the auditing organization, sample forms of auditor work documents drawn up and formalized in the audit process, and other audits used in audits it is desirable to have a methodological and practical database. these information (documents) are used by members of the audit working group and other auditor-specialists of the organization as a methodical and practical instruction in the processes of organization and implementation of audit services. because, in the audit system of uzbekistan, audit organizations can simultaneously provide audit services in different entities (insurance organizations, banks, joint-stock companies, various commercial organizations, entities with mixed ownership) and software the organization of this database in minot serves as a necessary resource for use as a normative and methodological basis for the inspection process; 6. also, in the software, it should be possible for the head of the audit group or the head of the audit organization to evaluate and control whether the assignments assigned to the members of the audit work group are performed in a high-quality, correct and timely manner. this opportunity allows the members of the audit working group to effectively monitor the timely and quality performance of assigned audit tasks. for this purpose, it is advisable to check the electronic information about the timely and quality completion of the task given in the system by the head of the audit group (organization) in the program, and after checking the status of the fulfillment of this requirement, it is appropriate to create an opportunity to remove the task from control in the software. in this case, it is necessary to create "monitoring of tasks" in order for the head of the audit group (organization) to check that the tasks are completed on time and correctly; 7. in the software, the results of the work performed by the members of the audit organization (auditor, assistant auditor, expert-specialist) (total audit tasks performed, work documents prepared by them, tasks completed on time, not completed on time, and tasks in the work process we believe that there should be an analysis (statistics) of data on we believe that this information allows to evaluate the activity of the members of the audit organization or their attitude to their work, to motivate auditors according to the results of their work, to change their position, and to objectively assess their potential; 8. in order to speed up the possibility of information exchange by the members of the audit organization, to ensure the safety of their information, it is desirable to create the possibility of information exchange through "telegram" or other social networks through this software. this makes it possible to establish a reliable and secure information exchange system through software. in order to create this opportunity, it is necessary to create an opportunity to enter (join) the "telegram" messenger or other social networks in the software; american journal of business management, economics and banking volume 37 june2025 p a g e | 188 www.americanjournal.org 9. naming the audit tasks included in the software, who sent the included audit evidence (documents) by whom and when, sending documents, entering input and output numbers, assigning the responsible persons for the audit tasks (collection of evidence), responsible persons it is expedient for them to get acquainted with the content of the task (evidence) sent to them, to have the opportunity to receive information about the acceptance or rejection of tasks by them; 10. we believe that it is necessary to install the software (electronic system) not only on computers, but also on modern telephones, tablets and other similar information devices (tools), and create opportunities for information exchange through them. through these opportunities, the members of the audit working group can share audit data remotely through the internet, manage and summarize the audit process. in our opinion, the software with the above capabilities should be available for individual and special use by the members of each audit team through the internet, and the audit work documents (intermediate and general audit reports, inspection results) it is desirable to place in the software the possibilities of using sample document forms related to the results of the independent analysis (research) and the results of the auditor's independent analysis (research). auditnet, itaudit:auditor, auditxp "complex audit", express audit:prof, auditsoft, audit sampling,teams, leapand software such as first-audit were found to be used on a short-term and low-cost basis. in our opinion, the importance and necessity of using software capabilities in the processes of audit evidence collection, the problems of software application, requirements, and the following to create an automated algorithm of evidence collection (table 3). table 3 by entering evidence into the software procedure for forming the auditor's opinion4 no recommendations for tasks to be included 1 initially, the software includes the name of the auditing organization, the names of the auditor, assistant auditors and involved experts, personal information, their position and tasks in the job description, the relevant calendar period (year, month) , day), system language, technical support contact numbers must be entered before the software is made available to everyone 2 after the conclusion of the contract on the provision of audit services, information on the activity of the audited entity (enterprise charter, job instructions, founding documents, approved forms of financial and statistical reports of the enterprise, enterprise information about partners (suppliers and contractors, buyers and customers, etc., order on accounting policy, audit contract, general audit plan and program, request for documents, etc.) audit group it is necessary to be included in the software base by the head of the (organization) and brought to the attention of all audit working group members in the system. 3 evidence (documentary information) necessary for the performance of audit tasks (collection of evidence) (violation (error or deficiency) in the activity of the audited entity, documents justifying the reliability of financial reporting indicators, including conducted questionnaire, results of testing or questionnaires, presentation letter, audit risk and significance level calculation table) to the software (system) within the period specified in the audit program by the member of the audit working group to which the relevant audit assignment was sent should be included 4 the reliability of the information (documents) entered into the software (system) by the head of the audit team (organization) is assessed using appropriate audit methods (procedures), and the results of the analysis are reflected in interim and general audit reports. will be delivered 5 based on the auditor's opinion, a written reference and an auditor's conclusion should be reflected on the results of the inspection. 4prepared by the author american journal of business management, economics and banking volume 37 june2025 p a g e | 189 www.americanjournal.org in conclusion, it is worth noting that the creation of software based on the above criterion (requirement) and information, except for independent research (verifications) of the auditor, all tasks related to the formation of audit information in a short period of time, understandable content for everyone and allows remote execution of the language. in this case, the management of the audited entity is responsible for the reliability of the information provided to the auditor, and the audit organization is responsible for the reliability of the auditor's opinion. also in the process of researchthe current situation of the use of the it audit service in the practice of uzbekistan, the existing problems and the results of the research on the use of the it audit service, which is widely used in the world audit practice, were described.in our opinion, the software (system) with the capabilities mentioned above is able to collect audit evidence at the location of the audit organization or in remote form without affecting the activities of the audited entity, and electronic data of audit evidence with understandable content for all. allows to analyze and store these data in reliable sources. this creates opportunities for the audit organization to reduce the fee paid for the audit service, involve less auditors in the performance of audit services, conduct inspections based on the terms and procedures specified in the contract. conclusions and suggestions in our opinion, it is desirable that the information technologies used in the audit of financial statements should have the following capabilities: the ability to run the audit software on the basis of the internet, to set a fixed deadline for the members of the audit work group to complete the audit tasks; possibilities of exchanging information on the execution of information on the internal structural structure of the audit organization or on the execution of assignments of internal structural importance; ability to create new assignment documents, send audit assignments to the members of the audit working group, perform tasks of monitoring the status of the audit assignments on time and quality; regulatory documents regulating accounting and auditing activities, international standards of auditing, national standards of accounting and international standards of financial reporting, internal standards of the auditing organization, model forms of audit work documents used, and other methodological and practical databases used in audits. to be; the possibility of assessment and control by the head of the audit group or the head of the audit organization that the tasks assigned to the members of the audit group are performed in a high-quality, correct and timely manner; analysis of data on the results of the work performed by the members of the auditing organization (auditor, assistant auditor, expert-specialist) (audit assignments, work documents, assignments completed on time, not completed and in progress) to be; to speed up information exchange by the members of the audit organization, to ensure the security of their information, the possibility of information exchange through "telegram" or other social networks through this software; naming the included audit tasks, who sent the included audit evidence and when, sending documents, entering input and output numbers, assigning the responsible persons for the audit tasks, getting acquainted with the contents of the task sent to them by the responsible persons, accepting the tasks by them or opt-out options; american journal of business management, economics and banking volume 37 june2025 p a g e | 190 www.americanjournal.org installation of auditing software not only on computers, but also on modern phones, tablets and other similar information technology devices, the possibilities of providing information exchange through them, etc. references: 1. n. dalibaev "it-audit. what is this?",https://ictnews.uz/30/03/2022/it-audit 2. i.i.meliev "pandemic and audit: how to solve the problem?" https://khabar.uz/tekhnologiya/pandemiya-va-audit-muammoni-kanday. 3. sh.k. umarova. "features of auditing using modern information technologies", "economics and society" magazine, issue 6, 2022, www.iupr.ru 4. n.v.homolko, l.a.popkova. "automation audit", 1999. www.edoc/bseu.by 5. ka trukhan. audit automation with auxiliary software it audit // corporate information systems. – 2019. – no. 4 – p. 19-25. – url:https://corpinfosys.ru/archive/issue-8/73-2019-8-itaudit. 6. b.a.sharifov. methodology of audit implementation with information technology and personal computers // molodoy uchenyy. 2021. #3. s. 332-335. url: https://moluch.ru/archive/345/77632. 7. d.a.mirzaev, i.j.bozorova,f.x.mamasidikova. perspektive razvitiya it-audita sistemy bukhgalterskogo uchyota za schot vnedreniya ikt. ninth international scientific and practical conference "big data and advanced analytics. big data and high-level analysis», minsk, republic of belarus, may 17-18, 2023 https://ictnews.uz/30/03/2022/it-audit https://corpinfosys.ru/archive/issue-8/73-2019-8-itaudit american journal of business management, economics and banking issn (e): 2832-8078 volume 42, november 2025 p a g e | 10 www.americanjournal.org development trends of digital economy and financial inclusion in uzbekistan’s banking system erkinova feruza najmitdinovna phd, banking and finance academy e-mail: feruzaxon2025@mail.ru a b s t r a c t k e y w o r d s the article analyzes the development trends of digital economy and financial inclusion in uzbekistan’s banking system from 2020 to 2025. using statistical, comparative, and swod analysis, the study demonstrates the growth of digital services, mobile payments, online banking, and financial literacy programs. the social impact of digital finance, including access to banking services for rural populations, women, and youth, is also discussed. the article provides recommendations for adopting reg tech and ai technologies, improving financial literacy, and enhancing cybersecurity. digital economy, financial inclusion, banking system, mobile banking, online banking, reg tech, cybersecurity. introduction in recent years, the gradual implementation of the digital economy concept in the republic of uzbekistan has created new opportunities for the transformation of the financial sector, particularly the banking system. the expansion of digital financial service infrastructure and the development of areas such as open banking, fin tech play an important role in strengthening the stability of the national economic system. at the core of the digital economy lie human capital, data, and innovative technologies, while the banking system serves as a key driver of these processes. according to data from the central bank of uzbekistan, as of 2025, 87% of active banking clients use digital services an increase of 2.4 times compared to 2020.alongside the development of the digital economy, issues of financial inclusion have become increasingly relevant. the term “digital economy «refers to enhancing economic efficiency through technological innovation, while “financial inclusion” means expanding access to financial services for individuals and businesses. over the past few years, uzbekistan’s banking system has carried out a series of reforms aimed at expanding digital services improving financial inclusion in uzbekistan’s banking system in 2025. american journal of business management, economics and banking volume 42 november2025 p a g e | 11 www.americanjournal.org table 1 analysis of digital banking service development type of banking service 2022 2025 mobile and internet banking 4 million users 8 million users electronic payment systems pay me, click, upay uzum, wireless terminals, internal banking apps and system integrations fintech integration cooperation between startups and banks for innovative services ai-based credit scoring algorithms and digital identification services in 2025, the following digital services have been actively developing within uzbekistan’s banking system: banks im to reduce costs and enhance customer convenience through. expansion of digital services. financial inclusion trends the level of financial inclusion in 2025 is characterized by the following features: assess to financial services: while 35% of the population actively used financial services in 2022, this figure is expected to reach 55-60% in 2025. urban-rural gap: mobile banking and agent banking services are being introduced to improve access in rural areas. woman and youth segments: financial inclusion programs are expanding among women and young people aged 18-30, particularly through online microloans and savings services. global context: worldwide, significant progress has been achieved in expanding formal financial assess, with digital technologies accelerating this process. beyond account ownership: true inclusion involves the active and purposeful use of financial services (savings, loans, payments) that contribute to financial stability. challenges: security concerns, personal data protection, and low levels of digital literacy still pose obstacles. policy importance: effective action requires comprehensive measures involving policy reform, financial education, innovation, and inclusion of all social groups. the relationship between the digital economy and financial inclusion the analysis shows that digital banking services have become a kay tool for enhancing financial inclusion. the digital transformation of banks yields several outcomes: increased speed and convenience of financial services. more effective use of electronic payment and credit systems by smes higher transparency and security levels in the banking sector. trends in 2025. in 2025, the following trends are observed in uzbekistan’s banking system: growth in digital service volume: an increase in transaction volume and the number of users. fin tech innovations: widespread adoption of artificial intelligence, blockchain, and digital identification systems. enhanced financial inclusion: improved access to financial services for rural and socially vulnerable groups. american journal of business management, economics and banking volume 42 november2025 p a g e | 12 www.americanjournal.org regulatory improvements: the central bank is developing new legal frameworks to regulate digital banking and fintech services. table 2number of digital banking users in uzbekistan (2020-2025) year number of users(mil) growth% digital share % 2020 5.4 36 2021 6.8 +25 45 2022 8.9 +30.8 58 2023 10.4 +16.8 69 2024 12.1 +16.3 78 2025 13.0 +7.4 87 source: central bank of the republic of uzbekistan, q12025(cbu.uz) table 3 dynamics of mobile payment growth (trillion uzs) year mobile payment volume growth rate % 2020 49.2 2021 82.5 67.6 2022 121.7 47.4 2023 174 43.0 2024 233.5 34.2 2025 297.6 27.4 table 4 share of digital services in the banking system indicator 2020 2023 2025 internet banking 34% 58% 76% mobil banking 41% 72% 88% online lending 9% 21% 33% digital cards 16% 38% 61% the digital economy and financial inclusion in uzbekistan’s banking system have entered a stage of stable growth over the past five years, largely due to the “digital transformation-2030” strategy of the central bank. the share of digital banking services has reached 87% the volume of mobile payments has increased six-fold. the number of internet banking users exceeds 13 million. the role of reg tech in the banking system. the development of digital infrastructure ensures not only convenience but also economic efficiency. reg tech functions include: financial monitoring and reporting: automated collection and submission of regulator-required data. american journal of business management, economics and banking volume 42 november2025 p a g e | 13 www.americanjournal.org kys (know your customer) and aml (anti-money laundering): identification of clients and prevention of illegal transactions. risk management: real-time analysis of credit, liquidity, and operational risks. compliance automation: streamlined integral audit and regulatory compliance processes. advantages include: reduction of errors. lower labor costs. faster and more accurate date preparation. transparent and efficient communication with regulators. uzbekistan’s banks are recommended to expand the use of reg tech, aml, and customer identification processes to strengthen compliance and operational efficiency. recommendations: broaden the implementation of reg tech and open banking platforms. develop ai and big data-based credit rating systems. create a unified api ecosystem to enhance client integration. design nationwide programs to improve financial literacy. strengthen cybersecurity infrastructure and align it with international standards. references: 1. presidential decree of the republic of uzbekistan “on the digital uzbekistan – 2030 program.” tashkent, 2020. 2. central bank of the republic of uzbekistan. “digitalization processes in the uzbek banking sector.” report, tashkent, 2022. 3. mamatqulov sh.r. “prospects for the implementation of digital technologies in commercial banks.” economy journal, tashkent, 2021. 4. abdurakhmanov q., ergashev b. digital economy: theory and practice. tashkent: science and technology, 2020. 5. mirziyoyev sh.m. the strategy of new uzbekistan. tashkent: uzbekistan, 2021. 6. sberbank of russia. digital transformation of the banking sector. moscow, 2021. 7. tinkoff bank. annual report on digital service development. moscow, 2022. 8. european banking authority. digital banking in europe: eba report., 2021. 9. psd2 directive (eu) 2015/2366 of the european parliament. brussels, 2015. 10. federal reserve system. the future of digital banking in the usa. washington dc, 2020. 11. paypal holdings inc. annual report 2021. san jose, 2021. 12. lee, j., & kim, h. digital banking transformation in south korea. journal of financial innovation, vol. 8(2), 2020. 13. kakao bank. annual report 2021. seoul, 2021. 14. ant financial (alipay). building a digital financial ecosystem. beijing, 2020. 15. tencent holdings ltd. wechat pay development report. shenzhen, 2021. 16. pwc. global fintech report: the road to digital banking ecosystems. london, 2020. 17. deloitte. the future of banking: digital transformation and ecosystems. new york, 2019. american journal of business management, economics and banking volume 42 november2025 p a g e | 14 www.americanjournal.org 18. world bank. digital financial services and financial inclusion. washington dc, 2021. 19. oecd. digitalization and the future of finance. paris, 2020. 20. imf. fintech and financial stability implications. washington dc, 2021. 21. https://review.uz/oz/post/iqtisodiy-tadqiqotlar-va-islohotlar-markazibanklar-faollik-indeksiniishlab-chiqdi 22. https://cbu.uz/oz/statistics/bankstats/588197/ 23. www.nbu.uz 24. www.lex.uz https://review.uz/oz/post/iqtisodiy-tadqiqotlar-va-islohotlar-markazibanklar-faollik-indeksini-ishlab-chiqdi https://review.uz/oz/post/iqtisodiy-tadqiqotlar-va-islohotlar-markazibanklar-faollik-indeksini-ishlab-chiqdi https://cbu.uz/oz/statistics/bankstats/588197/ http://www.nbu.uz/ http://www.lex.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 43, december 2025 p a g e | 57 www.americanjournal.org modern methods of assessing the risks of insurance organizations sattorov shokhrukh makhmudjon ugli independent researcher of the tashkent state university of economics orcid: 0009-0005-3793-6712, e-mail: shohruxs@list.ru a b s t r a c t k e y w o r d s this article presents the results of a study on the existing risks in the activities of insurance organizations, the main purpose of risk assessment, assessment invaders, as well as on the foreign methodology for choosing modern methods of assessment, which are used in determining and eliminating risk. including statistical and expert methods of risk assessment in insurance, risk-free (risk-free) as part of the financial stability loss risk assessment scale, accepted risk, critical risk, catastrophic risk zones, international risk assessment methods risk analysis, stress-test, event tree, monte carlo, theoretical opinions and considerations about the baes trust network are formulated. a comparative analysis of assessment methods was carried out and practical recommendations for their application were formulated. at the same time, in international practice, detailed information about the new stress-testing method of risk assessment, one-variable and multifactorial factors of the method and one-factor and multi-factor models, advantages and disadvantages of the method are presented. risk, risk assessment method, risk management, criticalrisk zone, stresstesting, bayes trust network, tariff policy, financial stability scale, one-factor model. introduction insurance is a unique, socially oriented development mechanism that contributes to the development of the national economy. it has a positive effect on the economic development of the country and reduces the level of influence of the global factor. currently, the economic changes in the insurance activity describe the existence of some shortcomings encountered in the process of perfecting the system. at the same time, state regulation of insurance activities is one of the important aspects of the insurance market. in this case, the state exercises control over the financial stability of insurance companies, establishes mandatory licensing of companies, which allows effective regulation of the insurance market mechanism. insurance organizations offer market participants an opportunity to increase financial efficiency by minimizing risks. american journal of business management, economics and banking volume 43 december2025 p a g e | 58 www.americanjournal.org in accordance with the general characteristics of insurance risks or their groups and obligations related to them, insurance areas are divided into insurance types (classes). types (classes) of insurance are determined by the cabinet of ministers of the republic of uzbekistan [2]. review evaluation activity is also an important component necessary to achieve the most optimal results in the economic transformation of the regions in the creation of the infrastructure of developed countries. in the republic, a solid legal framework regulating evaluation activities has been formed, extensive work has been done to develop the evaluation services market, to increase responsibility for the results and objectivity of evaluation work [10]. in international practice, evaluation occupies a worthy place in the market management system. in the past decade, the results of risk assessment have served as the basis for most decisions in the private and public sectors. the main purpose of risk assessment is to ensure the financial stability of the enterprise and its competitiveness. it is known that the main goal and task of any organization is to increase profit and minimize risks affecting financial efficiency, ensuring successful operation of activities. considering that the risk may arise at any time, the evaluator must first determine the current state of the economic environment. today, the fact that there are more than two hundred evaluation organizations operating in the market of evaluation services in the country, with about a thousand evaluators with qualification certificates, indicates that evaluation activities are becoming an indispensable tool in the arsenal of modern entrepreneurship, finance and managers [11,12]. material and method the most important and problematic aspect of insurance implementation in insurance companies is risk assessment. because as a result of the wrong assessment of risks, insurance companies may face large financial losses. today, risk assessment is a complex area that needs to be researched not only in the insurance market of our country, but also in the world. the scientific theory and researches of foreign scientists on the subject of insurance risk assessment were first studied in the coverage of this research work. in particular, han haiyun, one of the representatives of a group of chinese scientists, analyzed the indicators of insurance risk assessment divided into three levels, where the first level includes 3 indicators, the second level includes 9 indicators, and the third level includes 30 indicators [7]. in addition, shuo chen et al., in their research on insurance risk assessment and improvement under pandemic conditions, investigated the changes in the insurance market based on data from before and after the outbreak of covid-19 [8]. the assessment of insurance risks warns about situations related to the instability of the financial efficiency of the enterprise. also, economists in our country have put forward their scientific theories on several topics related to this research work. in particular, in the opinion of phd in economics, associate professor guliraykhan baymuratova, the formation of conceptual approaches to risk assessment is relevant and directly or indirectly affects the results of the company's financial activity, and the main task of management when choosing a risk management method is to assess and analyze potential risk, identify factors that increase it, and reduce risks. is interpreted as the choice of methods [9]. the first step in risk assessment is to identify the existing risk. this stage includes identification and description of risks that may affect the achievement of the final goal. in the second stage, the source and cause of the identified risk is analyzed, and in the third stage, the damages resulting from the impact american journal of business management, economics and banking volume 43 december2025 p a g e | 59 www.americanjournal.org of the risk are assessed. in this case, it is concluded that the assessed insurance risk is acceptable, permissible or unacceptable [4]. the method of risk assessment in insurance is divided into two groups: statistical method expert method the statistical method allows to determine the risk, the amount of damage, the probability of occurrence of unpleasant events. when using this method, it is necessary for the evaluator to have a large data source. two statistical methods are mainly used in practice: scenario analysis and dynamic financial analysis. scenario analysis is basically the main tool in financial loss analysis. deterministic models are used in this analysis [5]. dynamic financial analysis is mainly performed using stochastic models. today, this analysis is used more and more by western companies. this method was first mentioned in 1989 by a group of scientists from finland and england in their theories. this theory serves as the basis for the entire evolution of insurance solvency modeling. [4,6]. the advantage of dynamic analysis over scenario analysis is the ability to fully model the insurance portfolio in terms of premiums, cash flows, and reserves. the application of this analysis is considered to be a complex analytical method by its nature, with the help of which various business strategies are evaluated. any risk must fall into one of the four zones shown in figure 1 (safe zone, acceptable zone, critical zone, and catastrophic zone). figure 1. financial stability risk assessment scale based on these zones, the evaluator will determine to what extent the enterprise can respond to market demand and development prospects. there are many methods of risk assessment in international practice. in the process of risk assessment, it is important to analyze the activity of the enterprise and choose the method that achieves the perfect result. in practice, there are the following common methods of risk assessment: [5,6] •financial crisis •cash, short-term financial investments cannot cover credit debts • unstable financial situation; • insolvency •acceptable financial stability •lack of own working capital • absolute financial stability; • turning equity into working capital risk-free (dangerfree) zone perceived risk zone catastrophi c risk zone critical risk zone american journal of business management, economics and banking volume 43 december2025 p a g e | 60 www.americanjournal.org stress test; analysis of event tree; monte carlo method; bayesian confidence network method; the stress test is one of the most popular methods and plays an important role in assessing the existing risk to ensure the financial stability of the enterprise. major international foreign rating organizations use the stress test method and consider it the most appropriate solution for risk assessment. the stress test method is divided into the following according to risk factors: univariate stress test multifactorial stress test the stress test method is represented by two different models. 1. one-factor model widely used and it is used for routine monitoring. 2. multifactor model used based on historical data or hypothetical (based on expert estimates). when these models are used, the process of conducting hypothetical tests gives positive results. in practice, this method is divided into systematic (correlation method, monte carlo method, stochastic modeling and theory of extreme values) and non-systematic (subjective method, method without taking into account secondary factors) stress tests. тhe practical application of the stress test method brings positive results, that is, it is distinguished by the ease of use of the method, the possibility of using it for continuous monitoring, and the fact that it does not require the obligation to take into account the influence of complex factors. like any other method, there are pros and cons to assessing risk through the stress test method. the insurance risk assessment process begins with a preliminary risk analysis. using the abovementioned methods, it is possible to identify risk factors and their impact results, as well as to identify phenomena such as analysis of a known impact. usually, an adverse event has one or more risk factors. creating a model of the occurrence of an unpleasant event is called a scenario, and it is desirable to implement it with a probability of zero to one. usually, preliminary analysis requires consideration and separation of several development scenarios depending on the magnitude of the damage [11,12]. currently, there are several elements that prevent the further development of the market of professional evaluation services in our country and the increase of trust in evaluation organizations. in particular, the presence of conflict of interests arising in the process of state regulation of evaluation activities as a result of assigning the function of state regulation of evaluation activities to the state management body in the field of privatization, the existence of high requirements for the minimum amount of capital of evaluation organizations, restricts the entry of professional specialists into the market of evaluation services, as a result of which the quality of evaluation works shows that they do not correspond to the growing requirements, especially in business evaluation and banking and insurance activities [1,3]. results and discussion the development of the insurance market is closely related to the positive changes in the country's economy, the liberalization of the currency policy, and the improvement of the legislative and regulatory framework aimed at stimulating foreign economic relations. the growth of the insurance market is mainly ensured by the voluntary types of insurance provided by insurance companies and by the rapid development of insurance activities by insurance companies operating in the field of life american journal of business management, economics and banking volume 43 december2025 p a g e | 61 www.americanjournal.org insurance [10]. in this regard, the integration of assessment activities with insurance activities in the country remains an important factor. below we will consider insurance payments made in the first quarter of 2024. table 1 made by policyholders to insurance organizations information about insurance payments (as of march 2024) № indicators 2023 year 2024 year change (%) million.sum in percent (%) million.sum in percent (%) 1 insurance in the field of general insurance organizations, 511450 100% 436519 100% -14,7% including 197349 39% 275001 63% +39,3% 1.1 compulsory insurance 51352 10% 62127 14% +21,0% 1.2 optional insurance 145997 29% 212874 49% +45,8% 2 insurance in the field of life insurance organizations, including 314101 61% 161518 37% -48,6% 2.1 compulsory insurance 1928 0% 3060 1% +58,7% 2.2 optional insurance 312173 61% 158458 36% -49,2% as can be seen from the table, in the fourth quarter of 2022, 197,349 million soums were paid by policyholders to insurance organizations in the field of general insurance in the country for insurance services (compulsory insurance, voluntary insurance), while this figure increased to 275,001 million soums in the first quarter of 2023, respectively. amounting to soum. in insurance organizations in the field of life insurance, this figure will be 314,101 million in 2023. soums, 161518 million in 2024. it can be seen that soum has been paid. the stress test method is the most relevant mechanism for assessing the organization's financial condition and risks. in addition, it is an effective system in the field of insurance risk management and assessment, which helps to better understand the risks inherent in business. through this method, it serves to perform the necessary actions on time and to reduce or prevent risks. when using the event tree analysis method, it is done like using a visual, graphical form of the tree. the process begins with initial events, such as the wounding of a tree, and traces the ways in which outcomes develop along a chain of cause and effect relationships. at each stage of the process development, there are two outcomes, which is the activation or failure of the system. this analysis allows you to determine the likely outcomes of specific decisions or events. also, within this method, there is an event method, the main difference of which from the event tree analysis method is the absence of graphical representations of the chain of events and the possibility of estimating the probability of each event. the monte carlo method is based on obtaining a large number of realizations of a stochastic process, the probability properties of which correspond to similar values of the problem under consideration. this method is usually used when it is not possible to obtain accurate data or use deterministic american journal of business management, economics and banking volume 43 december2025 p a g e | 62 www.americanjournal.org algorithms. however, with this method, it is not possible to analyze the current results of specific decisions or identify adverse events. the bayesian confidence network method is a graphical probabilistic model that represents a set of variables and their probabilistic relationships. this method is based on special graphics and is not widely used in practice. therefore, special attention is paid to the further development and popularization of the method today. if we consider the formation of tariffs developed for life insurance, it can be said that they appeared based on the demand of the insured (client). in order to calculate the net rate for a life insurance contract, a basic source of information related to the potential risks of the insured is collected. these are detailed information about the policyholder's lifestyle, health status, age and employment. in addition, bayes network evaluation is carried out on the basis of conditional and unconditional probabilities determined by the expert method. conclusions and suggestions insurance (reinsurance) organizations are obliged to comply with the requirements for internal control and risk management system established by the authorized state body [2]. the requirements of the competent state body take into account the systemic importance, specific nature, scale and complexity of the type of activity carried out by the insurer (reinsurer). there are many ways to assess insurance risks. based on the above analysis, we have considered the most commonly used preliminary analysis, event tree, stress test, monte carlo and bayesian confidence network methods. analytical data show that the stress test method is the most popular method. according to the bank of international settlements, although the technique of using the stress test method is excluded by various financial institutions, it includes many methods used to assess possible events (risk). by analyzing the methods widely used in international practice, we made sure that it is possible to assess the risk with high accuracy and determine the level of possible negative effects. we have considered the need to follow the conditions existing at a certain time when choosing the necessary method of risk assessment, which allows the assessor to find the most relevant and necessary information for making management decisions. references 1. law of the republic of uzbekistan "on evaluation activities" no. 811 2. law of the republic of uzbekistan dated november 23, 2021 no. 730 "on insurance activities". 3. order of the director of the state asset management agency of the republic of uzbekistan dated may 1, 2020 no. 01/11-15/62 "on approval of the unified national valuation standard of the republic of uzbekistan" 4. барабанова в., совершенствование стандартов оцеки платежеспособности страховщиков. опыт центрально-восточной европы. страховое дело. – 2019. №1 5. глотова и., томилина е. современные методики оценки рисков страховых организаций. “кант” научный рецензируемый журнал. 2020 г. №4. 6. ромащенко б. финансовые риски и методы их оценки. кант научный рецензируемый журнал 2014 г. №2. 7. han hai-yun. research on standardization method of risk assessment for fire public liability insurance in assembly occupancies and underwriting auditing. the 5th conference on american journal of business management, economics and banking volume 43 december2025 p a g e | 63 www.americanjournal.org performance-based fire and fire protection engineering. procedia engineering 11 (2011) 120– 126. https://www.sciencedirect.com/science/article/pii/s1877705811008241 8. shuo chen, zhuoer lin, xuanyi wang, xian xu. pandemic and insurance purchase: how do people respond to unprecedented risk and uncertainty? china economic review. volume 79, june 2023, 101946. https://www.sciencedirect.com/science/article/abs/pii/s1043951x23000317 9. баймуратова г.т. о некоторых вопросах оценки финансовых рисков страховых организаций. international finance and accounting. issue 2, 2020 1-14 стр. 10. https://www.lex.uz 11. https://imda.uz/oz 12. https://reso.ru/ https://www.sciencedirect.com/science/article/abs/pii/s1043951x23000317 https://www.lex.uz/ https://imda.uz/oz https://reso.ru/ american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 65 www.americanjournal.org conceptualizing digital transformation: theoretical lenses on economic and labor market change mushtariy usmonova, leading research fellow, institute for advanced international studies at the university of world economy and diplomacy tashkent, uzbekistan mushtariy.usmonova@iais.uz a b s t r a c t k e y w o r d s this article provides a comprehensive conceptual exploration of digital transformation as it pertains to the economy and labor market, drawing on both classical and contemporary theoretical models. as digital technologies reshape production structures, employment relations, and organizational cultures, the need for a coherent theoretical and methodological framework has become pressing. the study synthesizes key approaches including the unified theory of acceptance and use of technology (utaut), skill-biased technological change (sbtc), and organizational change theory to elucidate the mechanisms through which digital transformation impacts work and skills. methodologically, the article evaluates both qualitative and quantitative traditions, highlighting the rise of mixed-methods and big data applications as essential to capturing the complexity of digital transitions. attention is paid to the challenges researchers face, including definitional ambiguity, the digital divide, data privacy, and the volatility of technological innovation. ultimately, the article argues for the development of integrated, multilevel frameworks and policy-oriented research agendas that can inform inclusive strategies for navigating labor market disruptions and supporting sustainable digital growth. digital transformation; labor market change; automation; artificial intelligence; skillbiased technological change; digital economy; organizational culture; technology adoption; mixed-methods research; policy frameworks; workforce dynamics; digital divide. introduction the digital transformation of the economy and labor market refers to the profound changes brought about by the integration of digital technologies into business processes, employment practices, and organizational structures. this transformation is characterized by the shift towards automation, artificial intelligence, and advanced data analytics, fundamentally altering the nature of work and the skills required in the labor market. as organizations adapt to this new landscape, understanding the american journal of business management, economics and banking volume 38 july2025 p a g e | 66 www.americanjournal.org dynamics of digital transformation has become crucial for policymakers, business leaders, and researchers alike, particularly as around 93% of organizations are actively pursuing or planning digital strategies to remain competitive in an increasingly interconnected world [1][2]. the significance of this topic lies in its far-reaching implications for employment and economic structures. digital transformation not only enhances operational efficiency and customer engagement but also raises critical issues regarding job displacement, skill gaps, and income inequality. for instance, theories such as skill-biased technological change (sbtc) suggest that technological advancements favor skilled labor, resulting in job polarization where low-skilled positions diminish while high-skilled roles proliferate [3][4]. this dynamic necessitates a reevaluation of education and training systems to better equip workers for the evolving demands of the digital economy [5]. methodologically, research on digital transformation employs a diverse range of qualitative and quantitative approaches to capture the complexities of this phenomenon. qualitative studies have been pivotal in exploring organizational culture and barriers to technology adoption, while quantitative research often relies on survey methodologies and big data analytics to gauge the broader impacts of digitalization [6][2]. however, challenges remain in standardizing definitions, addressing the digital divide, and navigating privacy concerns, complicating the research landscape [7][8]. as the economy and labor market continue to undergo rapid digital transformation, ongoing inquiry is essential to understand the multifaceted relationships between technology, organizational behavior, and workforce dynamics. future research must adopt integrated methodologies and focus on policy-oriented solutions that support both workers and businesses in adapting to the challenges and opportunities presented by technological advancements [9]. theoretical frameworks the theoretical landscape surrounding digital transformation and its impact on the economy and labor market is multifaceted, incorporating various established frameworks and models. one key approach is the unified theory of acceptance and use of technology (utaut), developed by venkatesh et al. (2003). this model integrates several existing theories, emphasizing four principal determinants of technology adoption: performance expectancy, effort expectancy, social influence, and facilitating conditions, along with four moderating factors including age, gender, experience, and voluntariness. this framework highlights the importance of understanding user motivations and contextual factors in driving technology adoption within organizations, especially during digital transformations [1]. another essential perspective is provided by the skill-biased technological change (sbtc) theory, which posits that technological advancements favor skilled over unskilled labor, thereby influencing labor market dynamics. this theory suggests that as technology progresses—particularly in automation and artificial intelligence—there is an increasing demand for skilled workers, leading to shifts in labor market requirements and contributing to income inequality [3][4][10]. the implications of sbtc underscore the necessity for education and training programs aimed at equipping workers with the skills needed in a technology-driven economy [5]. additionally, the role of organizational culture in digital transformation has been recognized as pivotal. studies have shown that traditional hierarchical structures may hinder responsiveness to market changes and customer demands, necessitating more agile and inclusive approaches to organizational change [1][11]. this perspective aligns with calls for integrating employee engagement and collaborative decision-making in digital strategy development, as highlighted by chanias et al. (2019) [1]. american journal of business management, economics and banking volume 38 july2025 p a g e | 67 www.americanjournal.org methodological approaches research on digital transformation in the economy and labor market has increasingly adopted diverse methodological approaches. the studies reviewed predominantly utilized cross-sectional designs, which are effective for providing insights at specific time points but are limited in capturing change processes over time. longitudinal and qualitative studies are recommended for a more dynamic understanding of digital transformation impacts [1]. qualitative and quantitative methods qualitative approaches, such as ethnography and thematic analysis, have been integral to understanding organizational culture and the barriers and facilitators to implementing digital technologies. for instance, thematic synthesis allows researchers to code findings from primary studies and construct analytical themes based on existing implementation frameworks [12]. the application of qualitative frameworks enables a nuanced exploration of the lived experiences of professionals navigating digital changes, especially in sectors such as mental healthcare [12][3]. on the other hand, quantitative research has gained prominence, particularly through survey-based methodologies. these studies often rely on self-report measures, which, while useful, may not fully capture the complexities of digital transformation dynamics. a rigorous approach includes the use of large datasets, as seen in analyses of companies listed on the shanghai and shenzhen stock markets, where financial indicators and text analysis of annual reports provided insights into digital transformation intensity [6]. integration of methodological frameworks the future of research in this area appears to trend towards mixed-methods approaches, integrating qualitative insights with quantitative data for comprehensive analysis. this approach can help address the limitations inherent in solely qualitative or quantitative methodologies. for instance, the integration of big data analytics has facilitated the examination of societal trends and labor market needs, providing a broader context for understanding digital transformation implications [2][13]. moreover, the development of frameworks that encompass both qualitative and quantitative elements is essential for advancing research on digital transformation. the application of established theoretical models, alongside robust empirical data, will enhance the understanding of how digital technologies reshape organizational culture, work practices, and the labor market at large [1][3]. there remains a call for more rigorous theoretical integration within digital transformation research. future studies should aim to combine qualitative and quantitative methodologies to build a more comprehensive understanding of the ongoing changes within the economy and labor market [1][12]. this dual approach will help clarify the complex interrelationships between digital technologies, organizational culture, and labor productivity, thus offering deeper insights into the mechanisms of transformation. key themes in digital transformation research digital transformation represents a crucial strategic imperative for organizations aiming to navigate the complexities of an increasingly digital and interconnected world. this journey involves integrating progressive technologies, redefining business models, and enhancing operational efficiency, with american journal of business management, economics and banking volume 38 july2025 p a g e | 68 www.americanjournal.org around 93% of organizations either having adopted or planning to adopt a digital transformation strategy to remain competitive [2][14]. digital transformation is broadly defined as the process of embedding digital technologies into an organization's products, processes, and strategies. the primary objectives are to improve customer experience, enhance employee engagement, and bolster overall competitiveness [15]. successful digital transformation can lead to long-term benefits, enabling organizations to respond more effectively to changing customer needs and fostering a culture of innovation [2][16]. a significant theme in digital transformation research is its impact on the labor market. the integration of automation and advanced technologies can alter job roles and create new occupational profiles, necessitating a shift in required skill sets. while there are concerns about job loss due to automation, there is also the emergence of new highly skilled positions that demand expertise in technology, such as data analysts and ai specialists [17][18]. moreover, the transition towards digitalization often leads to job polarization, where routine tasks are increasingly automated, affecting low-skilled workers disproportionately, while high-skilled jobs may proliferate [13]. this shift necessitates a commitment to lifelong learning and upskilling to equip workers with the competencies required in a digital economy [17][18]. organizations are encouraged to embrace a proactive stance towards digital transformation, which entails not only adopting new technologies but also rethinking management approaches and organizational structures [16]. the interplay between technology, management, and workforce dynamics is critical, as companies must balance investment in new tools with adequate training for employees to utilize these advancements effectively [14][15]. challenges such as employment stability, career development, and potential unemployment due to automation require strategic policy responses to mitigate risks while fostering job creation in new sectors driven by technology [17][18]. as digital transformation continues to shape the economic landscape, understanding its multifaceted implications becomes vital for researchers, policymakers, and business leaders alike. challenges in researching digital transformation researching digital transformation presents a range of challenges that stem from the complexity and rapid evolution of technology, as well as the intricate interactions between various stakeholders involved in the process. one of the primary challenges is the lack of a standardized definition of digital transformation. various industries and organizations interpret the concept differently, leading to a fragmented understanding of what constitutes effective digital transformation [2][14]. this variation complicates the development of a cohesive research framework, making it difficult to compare findings across different contexts. another significant hurdle is the technological and organizational barriers that many entities face. issues such as inadequate infrastructure, limited digital skills among staff, and insufficient investment in technology can hinder the implementation of digital initiatives [16][13]. these barriers not only affect individual organizations but also skew research outcomes by limiting the range of data available for analysis. for instance, organizations in resource-limited settings may struggle with budget constraints that prevent comprehensive digital transformation efforts, thus providing a less representative view of digital transformation across different economic contexts [13]. privacy and security concerns also pose challenges for researchers examining digital transformation. the integration of digital technologies often raises issues surrounding data privacy and surveillance, american journal of business management, economics and banking volume 38 july2025 p a g e | 69 www.americanjournal.org complicating the ethical landscape of research [12][19]. researchers must navigate these sensitive topics carefully, ensuring compliance with regulations while maintaining the integrity of their studies. the digital divide further complicates research efforts, as not all individuals or organizations can equally access or benefit from digital tools. factors such as socio-economic status, geographical location, and technological proficiency can create disparities in participation and outcomes, making it difficult to draw generalized conclusions [7]. this variability can skew results and limit the applicability of findings to broader populations. lastly, the rapidly evolving nature of technology presents a continuous challenge. digital transformation is a dynamic process, influenced by emerging technologies and changing market conditions. this pace of change means that research findings can quickly become outdated, requiring ongoing adaptation and reevaluation of research methodologies and frameworks [15][8]. future directions in research future research in the field of digital transformation should focus on exploring the relationships between various individual, group, and organizational factors at multiple levels. the integration of these under-studied elements into a comprehensive digital transformation framework can enhance our understanding of technology adoption processes and their outcomes in diverse workplace settings [1]. as the rapid advancement of digital technologies, such as artificial intelligence (ai), automation, and the internet of things (iot), continues to reshape the nature of work, it becomes imperative for scholars to investigate the implications of these changes on workforce dynamics and the skills required for the future [9]. multi-level framework development researchers are encouraged to develop and test hypotheses that clarify how different factors interact across various organizational levels. this includes the need for greater emphasis on contextual factors that influence technology acceptance and attitudes toward technological change, particularly in the wake of the covid-19 pandemic, which has significantly accelerated digitalization trends [1]. by employing a holistic, multi-level approach, researchers can identify gaps in the existing literature and highlight areas for future inquiry, thus contributing to both theory and practice in digital transformation. addressing the challenges of digitalization given the uncertainties surrounding the impacts of emerging technologies on jobs and organizations, there is a critical need for policy-oriented research that can guide stakeholders in navigating this dynamic landscape. policymakers must prioritize developing frameworks that support workers and organizations in adapting to technological disruptions while also harnessing the benefits of digital tools to enhance productivity and well-being [9]. research can play a pivotal role in informing these policies by providing evidence-based recommendations that foster a pro-tech, pro-employment, and proeconomy agenda. collaborative approaches in research future studies should adopt collaborative approaches, drawing on partnerships with private sector entities, academic institutions, and civil society organizations. this will not only facilitate the exploration of advanced technologies and their policy implications but also ensure that the solutions american journal of business management, economics and banking volume 38 july2025 p a g e | 70 www.americanjournal.org developed address the needs of diverse communities and respect fundamental rights [13]. by leveraging interdisciplinary insights and fostering innovation in governance through digital tools, researchers can significantly contribute to the effective and inclusive transformation of the economy and labor market. conclusion the digital transformation, a dynamic force reshaping the global economy and labor market, has been thoroughly examined through various theoretical and methodological lenses in this article. we have seen how established frameworks such as the unified theory of acceptance and use of technology (utaut) and the skill-biased technological change (sbtc) theory offer crucial insights into the mechanisms of technology adoption and the resultant shift in workforce demands. the importance of fostering an adaptive organizational culture, one that embraces agility and collaboration, has also emerged as a critical determinant of successful digital integration. methodologically, the field is evolving from a reliance on cross-sectional and singular qualitative or quantitative approaches towards a more comprehensive, mixed-methods paradigm. the increasing adoption of longitudinal studies and the integration of large datasets through advanced analytics are empowering researchers to capture the nuanced and evolving impacts of digitalization more effectively. this holistic approach is vital for building a robust understanding of the complex interplay between technology, human capital, and economic structures. however, the path to a complete understanding of digital transformation is fraught with challenges. the lack of definitional consensus, persistent technological and organizational impediments, critical privacy concerns, and the widening digital divide all complicate research efforts. furthermore, the relentless pace of technological innovation demands a continuous re-evaluation of research questions and methodologies to maintain relevance. moving forward, the research agenda must prioritize the development of multi-level frameworks that account for the intricate interactions between individual motivations, group dynamics, and organizational strategies within the context of digital change. a particular emphasis should be placed on policy-oriented research, designed to equip policymakers with the evidence-based insights needed to navigate job displacement, skill gaps, and the creation of new employment opportunities. collaborative, interdisciplinary research, drawing on expertise from various sectors, will be instrumental in fostering innovative solutions that are both technologically advanced and socially equitable. by embracing these future directions, research on digital transformation can continue to illuminate its profound implications, guiding societies toward a future where technology serves as a catalyst for inclusive growth and human flourishing. references [1] trenerry, b., chng, s., wang, y., suhaila, z. s., lim, s. s., lu, h. y., & oh, p. h. 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(n.d.). digital development overview. retrieved july 2025, from https://www.worldbank.org/en/topic/digital/overview https://doi.org/10.1093/ser/mwaf011 https://davidcard.berkeley.edu/papers/skill-tech-change.pdf https://www.epi.org/publication/technology-inequality-dont-blame-the-robots/ https://doi.org/10.54844/vte.2024.0589 https://doi.org/10.1176/s12913-023-10536-1 https://doi.org/10.1371/journal.pone.0325484 https://arxiv.org/html/2506.23230v1 https://digitalleadership.com/glossary/digital-transformation-examples/ https://www.numberanalytics.com/blog/digital-transformation-shaping-future-public-policy-governance https://www.numberanalytics.com/blog/digital-transformation-shaping-future-public-policy-governance https://www.cureusjournals.com/blog/the-economics-of-digital-transformation https://doi.org/10.3846/cibmee.2019.073 https://www.eurofound.europa.eu/en/employment-impact-digitalisation https://doi.org/10.1257/jep.33.2.3 https://doi.org/10.1016/j.techfore.2023.122822 https://doi.org/10.1371/journal.pone.0297449 https://www.worldbank.org/en/topic/digital/overview american journal of business management, economics and banking volume 38 july2025 p a g e | 72 www.americanjournal.org [19] tony blair institute for global change. (n.d.). the impact of ai on the labour market. retrieved july 2025, from https://institute.global/insights/economic-prosperity/the-impact-of-ai-on-the-labourmarket https://institute.global/insights/economic-prosperity/the-impact-of-ai-on-the-labour-market https://institute.global/insights/economic-prosperity/the-impact-of-ai-on-the-labour-market american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 13 www.americanjournal.org foreign experience of property value assessment jaloliddinova mokhira doctoral student at tashkent state university of economics a b s t r a c t k e y w o r d s we have published in this scientific article an assessment of the value of property regulation of the state of uzbekistan and its implementation in the experience of foreign countries, in particular, we looked at the example of the united states, italy and azerbaijan. valuation, real estate, standard, object, income introduction in particular, the legal regulation of assessment activities in the united states involves a multilevel system. “this system, in turn, is made up of many different professional institutions that perform a specific task. also, the assessment activity is regulated by regulatory documents established by the state, and licensing is carried out only in the field of real estate assessment. the appraisal foundation (the appraisal foundation, taf), founded in 1986 with the aim of developing real estate valuation standards, is today made up of four advisory boards that develop standards, methodologies, corrections, etc. the evaluation jam will also resolve disputes that arise between evaluation agents” . the assessment standards board (asb), is an organization of seven representatives whose composition is involved in the development and modernization and interpretation of the american standards uspap (uniform standards of professional appraisal practice). the assessment practice council (apb) consists of five to nine representative bodies of assessors providing advisory services in various areas of their practice. the department also develops and publishes notes on the general theory of evaluation (recognized valuation methods and techniques). the appraiser qualifications board (aqb) develops expertise aspects and sets requirements for the education and experience of appraisers in real estate . in addition to the assessment fund in the united states, there are members of appraiser associations and representatives from a number of federal agencies, as well as organizations such as the appraiser qualifications board (aqb), which includes assessment committees(appraisal boards). the subcommittee on assessment is a federal public body. "supervises the legal regulation of assessment activities and compliance with assessment standards, and also manages the federal register of appraisers and oversees the activities of the assessment jam unit. in addition, in the united states, appraisers are affiliated with a variety of professional organizations, such as the american society of appraisers, the international society of appraisers, the institute of business appraisers, the association of machine and equipment appraisers, the international association of public appraisers” . if we talk about the qualifications of an appraiser, the united states american journal of business management, economics and banking volume 40 september2025 p a g e | 14 www.americanjournal.org has very high requirements for real estate appraisers, and the services they provide are considered more reliable than appraisers of other types of property. real estate agents must complete the course and take the exam in order to obtain a license (certificate) that allows you to evaluate property. regardless of whether you check your information, there are three things you need to confirm: being on the professional committee of the institute for business evaluation (iba), having a higher degree and meeting certain requirements. the individual license is territorial in nature and is valid only in the state provided.eal estate agents must complete the course and take the exam in order to obtain a license (certificate) that allows you to evaluate property. regardless of whether you check your information, there are three things you need to confirm: being on the professional committee of the institute for business evaluation (iba), having a higher degree and meeting certain requirements. the individual license is territorial in nature and is valid only in the state provided. to be eligible to assess property at any point in the united states, the appraiser must obtain a federal license. to become an appraiser in a non-real estate field, you must be a member of only one of the self-regulating appraiser organizations. however, the practice of u.s. assessors is regulated by u.s. federal laws on assessment practice, statespecific laws, uniform standards in the assessment process, the assessment association consensus, and individual practice. however, the united states has no regulatory framework, regulatory requirements, and good practices for contractors. in our study, we also studied the role of european bodies in assessment activities. however, the practice of u.s. assessors is regulated by u.s. federal laws on assessment practice, state-specific laws, uniform standards in the assessment process, the assessment association consensus, and individual practice. however, the united states has no regulatory framework, regulatory requirements, and good practices for contractors. in our study, we also studied the role of european bodies in assessment activities. for example, italy has no government or national regulations related to architecture. the main stakeholders are: confederation of italian landscape engineers (cnggl), italian chamber of commerce italian chamber of commerce (italian chamber of commerce), merchants ' association (geoval). in italy, valuation practices are based on the european standards organization (tegova), the italian property valuation standard, and the italian banking association (aib) guidelines for credit impact assessments guaranteeing properties. italian law is similar to other laws and regulations in terms of price fixing, quality, legal procedures, capitalization and certain regulatory requirements. evaluation standards in italy are relative and do not require a separate license for activities. at the same time, it is noted that there are different types of countries in different countries, each of which has its own characteristics, depending on the phenomenon under investigation. italy has the lowest efficiency in terms of activity and leadership. however, all countries have their own preferences, and building inspections are common in the united states. a number of laws and regulatory documents have been developed around the world on the principles of international law. in the us, home assessment is carried out by qualified and trained professionals. at one time, however, the education of workers in the united states was limited. be seen from the table, italy has the lowest efficiency in terms of activity and leadership. however, all countries have their own preferences, and building inspections are common in the united states. a number of laws and regulatory documents have been developed around the world on the principles of international law. in the us, home assessment is carried out by qualified and trained professionals. at one time, however, the education american journal of business management, economics and banking volume 40 september2025 p a g e | 15 www.americanjournal.org of workers in the united states was limited. real estate agents in the united states, as a rule, do not engage in professional or legal activities. real estate agents themselves can also be divided into categories. those that determine the location (e.g. west los angeles or santa barbara, california), while those that have added value (e.g. one hotel, apartment, park, or apartment). in addition, there are those who have wealth and those who do not have wealth the passage of federal laws allowed the government to regulate business. before law no. 29, law firms were regulated and regulated by law societies. there are many such companies in the united states, but only three of them are based on their main business, in particular: 1. the" american institute of real estate appraisers " are income generating property appraisers. 2. "company of real estate appraisers" free accommodation. passage of federal laws allowed the government to regulate business. before law no. 29, law firms were regulated and regulated by law societies. there are many such companies in the united states, but only three of them are based on their main business, in particular: 1. the" american institute of real estate appraisers " are income generating property appraisers. 2. "company of real estate appraisers" free accommodation. 3. "american partnership" cooperation on machinery and equipment in the united states, real estate trading is a relatively rare activity for real estate companies with legal cooperation. this type of research is usually conducted by one or two people and usually has 3-10 evaluators. in addition to this company, other large companies operate in this market. for example," cushman & wakefield "or" cb commercial " is the business of a large company.n the united states, real estate trading is a relatively rare activity for real estate companies with legal cooperation. this type of research is usually conducted by one or two people and usually has 3-10 evaluators. in addition to this company, other large companies operate in this market. for example," cushman & wakefield "or" cb commercial " is the business of a large company. typically, they look at larger projects and, if necessary, bring in investors or "big capital" from outside wall street. this assessment or rating depends on the researcher's ability to collect specific information and information. the information required to have construction insurance is provided by comps inc.can be obtained from. this industry provides information for housing, office, hotel, commercial and residential buildings. newsletters are sent to customers every two weeks. another way for the appraiser to have accurate information is through brokerage and real estate companies. these companies specialize in affordable housing projects and have access to all the documents and contracts related to the purchase and sale of properties. the following methods are used to fix the elements: cost method, which indicates the amount of money needed to create or change the object of assessment. this takes the depreciation of the object of assessment. a comparative approach, which is based on the comparison of products and their characteristics, for which there is a price data. the derivative based on the amount of money generated using the object of evaluation.ollowing methods are used to fix the elements: cost method, which indicates the amount of money needed to create or change the object of assessment. this takes the depreciation of the object of assessment. american journal of business management, economics and banking volume 40 september2025 p a g e | 16 www.americanjournal.org a comparative approach, which is based on the comparison of products and their characteristics, for which there is a price data. the derivative based on the amount of money generated using the object of evaluation. when implementing the income strategy, the broker uses the following rules: 1) this is a form of financing used by households or individuals who have the right to a loan; 2) internal accounting of funds, cash flow accounting, cash flow accounting the cost method is based on the method of calculating the costs associated with the construction of a building the main building materials or building components, their components, for example, land used for construction and construction. stages of the comparison method1) this is a form of financing used by households or individuals who have the right to a loan; 2) internal accounting of funds, cash flow accounting, cash flow accounting the cost method is based on the method of calculating the costs associated with the construction of a building the main building materials or building components, their components, for example, land used for construction and construction. stages of the comparison method: -conduct research, i.e. research market data related to information sales; identification of units relevant to comparison and development of comparative analysis for each; comparison and corresponding adaptation of subject and comparative sales by comparison elements; to reconcile several value indicators that lead to a single value indicator from the movement of a comparable object in the market (up or down). in the united states, the practice of assessment is regulated by the state. the assessment foundation (taf) is the main standards body; its assessment standards board (asb) promulgates and updates the best programs as codified by the unified standards of professional assessment practice (uspap), while its board of assessment qualifications (aqb) minimum standards for assessment certification and licensing. one of the most prominent professional organizations of real estate appraisers in america is the valuation institute (ai). it was a merger of the american institute of real estate appraisers and the society of real estate appraisers. founded in 1930 along with others, the two organizations ai formation merged in 1990.ne of the most prominent professional organizations of real estate appraisers in america is the valuation institute (ai). it was a merger of the american institute of real estate appraisers and the society of real estate appraisers. founded in 1930 along with others, the two organizations ai formation merged in 1990. these group awards were given to four professional evaluators: sra, housing evaluators,-rrs ai, for housing review evaluators,, mai for commercial evaluators, and-grs ai, for commercial review evaluators. the institute follows strict rules for the use and display of these designations. assessment activities in azerbaijan are regulated by the law "on assessment activities", which came into force in 1998. the society of appraisers of azerbaijan, registered in 1997, is a community organization that brings together all assessors operating in the country. the new revision of the law “on assessment activities” of the republic of azerbaijan entered into force on december 18, 2009. this law establishes the general principles of property valuation activities in the republic of azerbaijan, and also regulates the organizational, economic and legal relations arising in its connection. american journal of business management, economics and banking volume 40 september2025 p a g e | 17 www.americanjournal.org in this case, the state committee of the republic of azerbaijan approved the following standards : "professional ethics of the appraiser; generally accepted assessment principles the new revision of the law “on assessment activities” of the republic of azerbaijan entered into force on december 18, 2009. this law establishes the general principles of property valuation activities in the republic of azerbaijan, and also regulates the organizational, economic and legal relations arising in its connection. in this case, the state committee of the republic of azerbaijan approved the following standards : "professional ethics of the appraiser; generally accepted assessment principles; market value as a basis for valuation; fundamentals of valuation beyond market value; drawing up an assessment report; assessment of material assets; production equipment, price assessment of machinery and equipment; evaluation for the preparation of financial and accounting reports; assessment of credit security, collateral and debt obligations”. laws that will be needed when carrying out assessment activities: 1.law of the republic of azerbaijan" on the state register of real estate".fundamentals of valuation beyond market value; drawing up an assessment report; assessment of material assets; production equipment, price assessment of machinery and equipment; evaluation for the preparation of financial and accounting reports; assessment of credit security, collateral and debt obligations”. laws that will be needed when carrying out assessment activities: 1.law of the republic of azerbaijan" on the state register of real estate". 2.the law of the republic of azerbaijan "on land reform". 3.law of the republic of azerbaijan "on the procedure for consideration of citizens 'appeals" 4. law" on mortgage " of the republic of azerbaijan 5.law on assessment activities of the republic of azerbaijan 6.law of the republic of azerbaijan" on state registration and state register of legal entities". 7.3.law of the republic of azerbaijan "on the procedure for consideration of citizens 'appeals" 4. law" on mortgage " of the republic of azerbaijan 5.law on assessment activities of the republic of azerbaijan 6.law of the republic of azerbaijan" on state registration and state register of legal entities". 7.improving the quality of assessment activities in azerbaijan is carried out under the program of the international finance corporation (ifc) for the development of mortgage lending in azerbaijan and central asia. 8.2018 on march 18, nusret ibragimov was elected chairman of the board of the society of appraisers of azerbaijan. since 2017, ibragimov has been a current member of the board of the company. the new council of the society has 11 members. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 127 www.americanjournal.org thеorеtiсаl аnd lеgаl bаsis of initiаtivе budgеting in thе budgеt sуstеm muzаffаrov mukhаmmаdjon mаkhmud ugli dеpаrtmеnt of budjеt ассounting аnd trеаsurу tаshkеnt stаtе univеrsitу of есonomiсs, tаshkеnt. uzbеkistаn muhаmmаdjonmuzаffаrov7@gmаil.сom orсid: 0009-0006-8005-8035 tеl: +998907157625, uo`k 336.13.051, jеl: h72. a b s t r a c t k e y w o r d s this аrtiсlе сovеrs thе thеorеtiсаl foundаtions of initiаtivе budgеting, thе pесuliаritiеs of initiаtivе budgеting in intеrnаtionаl еxpеriеnсе. in thе fiеld of publiс finаnсе, thе impасt of initiаtivе budgеting on thе stаtе budgеt аnd its rolе in сontrolling budgеtаrу funds hаvе bееn studiеd. projесts саrriеd out bу thе аuthor through initiаtivе budgеting in thе rеgions hаvе bееn studiеd аnd аnаlуzеd. uzbеkistаn hаs bееn intеgrаting pаrtiсipаtorу budgеting into its publiс finаnсiаl mаnаgеmеnt sуstеm sinсе 2019 to еnhаnсе сitizеn involvеmеnt in fisсаl dесision-mаking. whilе progrеss hаs bееn mаdе, сhаllеngеs rеmаin in еnsuring еffiсiеnсу, еquitу, аnd trаnspаrеnсу. this studу еxаminеs thе еvolution of pаrtiсipаtorу budgеting in uzbеkistаn, аssеssеs its еffесtivеnеss, аnd proposеs strаtеgiеs for its optimizаtion. initiаtivе budgеting, pаrtisipаtorу budgеting, stаtе budgеt, opеn budgеt portаl, budgеt funds, budgеt opеnnеss, projесts. introduction from intеrnаtionаl еxpеriеnсе, wе саn sее thаt thе pаrtiсipаtion of сitizеns in thе budgеt proсеss sеrvеs to еnsurе opеnnеss аnd trаnspаrеnсу, inсrеаsе publiс сontrol аnd, аs а rеsult, inсrеаsе thе еffiсiеnсу of thе асtivitiеs of stаtе bodiеs аnd prеvеnt сorruption. sinсе thе middlе of thе 20th сеnturу, thе pаrtiсipаtion of сitizеns in thе proсеss of distribution of budgеtаrу funds hаs bееn саrriеd out in mаnу stаtеs with dеmoсrаtiс forms of govеrnmеnt. but in thе 80s, this prасtiсе dеvеlopеd аnd bеgаn to асtivеlу usе vаrious tесhnologiеs, dеvеloping аnd implеmеnting vаrious innovаtivе projесts аnd progrаms bаsеd on publiс pаrtiсipаtion in thе аdoption of dесisions rеlаtеd to loсаl dеvеlopmеnt аnd thе dirесt implеmеntаtion of thеsе dесisions in most stаtеs. in modеrn сitiеs todау, thеrе аrе mаnу lifе problеms. initiаtivе budgеting plауs аn importаnt rolе in solving thеsе problеms bу еnsuring thе еffесtivе dеvеlopmеnt of dеmoсrасу. initiаtivе budgеting, whiсh inсorporаtеs dеmoсrаtiс еlеmеnts suсh аs сitizеn pаrtiсipаtion in mаking budgеt dесisions, inсrеаsing rеsponsibilitу аnd trаnspаrеnсу, is аn аttеmpt to solvе urbаn problеms bу strеngthеning thе сonnесtion bеtwееn сitizеns аnd rеprеsеntаtivеs аt thе loсаl lеvеl аnd сrеаting аn orgаnizеd soсiеtу. in american journal of business management, economics and banking volume 35 april 2025 p a g e | 128 www.americanjournal.org this wау, it саn bе usеd аs а tool to promotе diffеrеnt tуpеs of sustаinаbilitу in thе politiсаl, есonomiс аnd soсiаl sphеrеs. this rеsеаrсh is аimеd аt prеsеnting thе сonсеpt, еmеrgеnсе, асtivitiеs аnd rеsults of initiаtivе budgеting[1]. in thе world, initiаtivе budgеting is а сitizеn-oriеntеd аdministrаtion аnd bеlongs to issuеs suсh аs improving thе quаlitу of mаnаgеmеnt, strеngthеning rеsponsibilitу, trаnspаrеnсу in thе provision of publiс sеrviсеs аnd mесhаnisms to еnsurе morе quаlitу of pаrtiсipаtion аrе guidеd. in 1999, thе numbеr of initiаtivе budgеting wаs vеrу low. bу 2005, thе numbеr of саsеs in еuropе hаd risеn to 55. this trеnd сontinuеd to grow. bу 2009 thе numbеr hаd grown to ovеr 200, mаinlу duе to thе shаrp growth in itаlу, but аlso in spаin аnd portugаl. lisbon wаs thе first еuropеаn саpitаl to hаvе initiаtivе budgеting with аn еlесtroniс votе of аpproximаtеlу 548,000 rеsidеnts асross thе сitу. initiаtivе budgеting аlso bеgаn in northеrn еuropе from 2008 (norwау аnd swеdеn, thеn in 2010 iсеlаnd аnd finlаnd in 2012). sеvеrаl tуpеs of mеthodologiеs аrе usеd in thе budgеt poliсу of thе сountriеs of thе world, аimеd аt еnsuring thе еffесtivеnеss of еxpеnsеs. thе mаin goаl pursuеd bу thеm is to асhiеvе high rеsults in thе formаtion of budgеt rеvеnuеs аnd thе usе of thеir еxpеnsеs. for еxаmplе, it is а mеthodologу аimеd аt plаnning budgеt еxpеnsеs with а foсus on thе rеsults of асtivitiеs. its еssеnсе is to dirесt budgеtаrу funds to асhiеvе thе sеt goаls on а nаtionwidе sсаlе. in thе implеmеntаtion of budgеt poliсiеs through this mеthodologу, thе finаnсiаl strаtеgу is саrriеd out not in thе сross sесtion of tеrritoriеs, but in thе сross sесtion of аrеаs. thе. whеn dеvеloping а finаnсiаl strаtеgу, it is nесеssаrу to introduсе mеthodologiеs thаt аllow tаking into ассount thе tеrritoriаl nаturе. in dесеmbеr 2020, in thе аddrеss of thе prеsidеnt of thе rеpubliс of uzbеkistаn to thе suprеmе аssеmblу, it wаs еstаblishеd thаt “it is nесеssаrу to dеvеlop tеrritoriеs in а сomplеx wау, to сrеаtе suitаblе living сonditions for thе populаtion” [2]. todау, аt thе сеntеr of сonsistеnt rеforms on budgеttаx poliсу, it is аn importаnt tаsk to inсrеаsе thе еffiсiеnсу of inсomе аnd еxpеnsеs of thе budgеt. thе саtеgorу of initiаtivе budgеting-impliеs thе pаrtiсipаtion of сitizеns in thе formаtion of tеrritoriаl budgеts. in this саsе, prioritу аrеаs of еxpеnsеs plаnnеd to bе саrriеd out аrе еstаblishеd, hаving pаssеd thе сitizеns ' disсussion. of сoursе, suffiсiеnt сonditions must bе сrеаtеd in аdvаnсе for thе opеnnеss of thе budgеt. thе rеаson is, if thе prinсiplе of opеnnеss of thе budgеt doеs not еxist, it bесomеs morе сompliсаtеd to асhiеvе thе pаrtiсipаtion of сitizеns in thе proсеssеs of initiаtivе budgеting. аlthough thе prасtiсе of initiаtivе budgеting hаs not bееn fullу formulаtеd in uzbеkistаn, а numbеr of rеforms hаvе bеgun to bе implеmеntеd. in pаrtiсulаr, with thе аdoption of thе budgеt сodе of thе rеpubliс of uzbеkistаn, thе prinсiplеs of thе budgеt in forсе wеrе еxpаndеd аnd improvеd. thе lаw of thе rеpubliс of uzbеkistаn on thе budgеtаrу sуstеm (аdoptеd in 2000), whiсh wаs in forсе until 2014, did not inсludе “opеnnеss”in thе struсturе of budgеtаrу prinсiplеs. аs of 2014, this prinсiplе of “opеnnеss” is rеflесtеd in аrtiсlе 7 of thе nеwlу аdoptеd budgеt сodе[3]. аs а rеsult, lеgаl foundаtions of trаnspаrеnсу wеrе сrеаtеd in thе implеmеntаtion of budgеtаrу poliсiеs in our сountrу. аt thе sаmе timе, thе dесision of thе prеsidеnt of thе rеpubliс of uzbеkistаn dаtеd аugust 22, 2018 no. pd-3917 “on mеаsurеs to еnsurе thе opеnnеss of budgеtаrу dаtа аnd асtivе pаrtiсipаtion of сitizеns in thе budgеt proсеss”sеrvеs to furthеr ассеlеrаtе rеforms in this rеgаrd. with this doсumеnt, spесiаl еmphаsis wаs plасеd on two аspесts of budgеt poliсу. in pаrtiсulаr, thе lаunсh of thе opеn budgеt portаl аnd thе implеmеntаtion of thе mеthod of dirесting 10% of thе аdditionаl еаrnеd funds of loсаl budgеts on thе bаsis of сitizеns ' аppеаl mаrkеd а nеw stаgе[4]. american journal of business management, economics and banking volume 35 april 2025 p a g e | 129 www.americanjournal.org bу thе dесision of thе prеsidеnt of thе rеpubliс of uzbеkistаn dаtеd аpril 4, 2021 pd-5072 “on аdditionаl mеаsurеs to еnsurе thе асtivе pаrtiсipаtion of сitizеns in thе budgеt proсеss”, сitizеns hаvе thе opportunitу not onlу to сontrol thе proсеssеs of budgеt formаtion, but аlso to pаrtiсipаtе in thеir еxpеnditurе, stаrting from thе proсеss of formаtion of budgеtаrу funds. in ordеr to еxpаnd publiс pаrtiсipаtion in thе proсеss of budgеt formаtion, а nеw proсеdurе wаs introduсеd in stаgеs in distriсts аnd сitiеs to foсus 5% of thе аpprovеd totаl сosts in thе rеspесtivе budgеts on thе finаnсing of еvеnts formеd on thе bаsis of publiс opinion. in 2021, this proсеdurе wаs introduсеd in onе distriсt or сitу in еасh rеgion of thе rеpubliс (totаl 14), sinсе jаnuаrу 1, 2022, this proсеdurе hаs bееn introduсеd in аll distriсts аnd сitiеs of uzbеkistаn. in аddition, sinсе julу 1, 2021, thе minimum аmount of аdditionаl funds of thе distriсt аnd сitу budgеts, аlloсаtеd to thе finаnсing of еvеnts formеd on thе bаsis of publiс opinion, hаs bееn inсrеаsеd from 10 pеrсеnt to 30 pеrсеnt[5]. litеrаturе rеviеw sсiеntifiс rеsеаrсh on thе еffесtivе usе of finаnсiаl rеsourсеs through initiаtivе budgеting in thе сonditions of rеforming publiс finаnсе is widеlу саrriеd out on а globаl sсаlе. thе first wаvе of widеsprеаd intеrеst in pаrtisаn budgеting аrosе with lаtin аmеriсаn dаtа. in fасt, nеighborhood movеmеnts in porto аlеgrе originаtеd in thе 1970s. thе pеoplе of thе poor distriсts rеvoltеd аgаinst thе govеrnmеnt's lасk of intеrеst in асting for thеir own bеnеfit. thеir mаin rеquirеmеnt wаs thе infrаstruсturе аnd sеrviсеs of thе сitу, аs wеll аs thе аutonomу of thе populаtion. thеу аrrаngеd thеir dеmаnds using асtions suсh аs bloсking thе roаd. with thеsе roаdbloсks, thеу linkеd thеir mаtеriаl dеmаnds to thе issuе of сivil rights, аnd thus thеу inсludеd thеir problеms in а widеr disсussion. thе dеmoсrаtizаtion rеquirеd in thе аlloсаtion of stаtе budgеts hеlps soсiаllу mаrginаlizеd groups. initiаtivе budgеting bеgаn in thе muniсipаlitу of porto аlеgrе in 1989. this сitу hаs а populаtion of morе thаn 1 million аnd is riсh bу brаziliаn stаndаrds. in 1988, lаbour won thе mауorаl еlесtions. thе сompаnу of this pаrtу is bаsеd on thе rеvеrsе dirесtion of dеmoсrаtiс pаrtiсipаtion аnd spеnding prioritiеs, in whiсh stаtе rеsourсеs wеrе spеnt in thе middlе аnd uppеr сlаssеs. initiаtivе budgеting, on thе othеr hаnd, wаs intеndеd to hеlp poor сitizеns аnd nеighborhoods. thus, thе goаl wаs to hеlp thеsе poor сitizеns rесеivе а lаrgе shаrе of govеrnmеnt spеnding. soonhее kim hаs studiеd thе impасt of initiаtivе budgеting in south korеа on сitizеn pаrtiсipаtion, trаnspаrеnсу, аnd сonfidеnсе in stаtе powеr. hе showеd thаt whеn сitizеns pаrtiсipаtе in initiаtivе budgеting in” сitizеn pаrtiсipаtion, trаnspаrеnсу, аnd trust in publiс аdministrаtion: pаrtiсipаtorу budgеting in korеаn loсаl govеrnmеnts", thеу аrе morе inсlinеd to support dеmoсrасу, ассеpt dеmoсrасу аs аn еffесtivе institution, аnd undеrstаnd how thе stаtе budgеt works. through initiаtivе budgеting, сitizеns саn асquirе skills thаt аllow thеm to bесomе асtivе сitizеns. сollаborаtivе budgеting hаs shown thаt” bу pаrtiсipаting in loсаl budgеt dесision-mаking, mаrginаlizеd pеoplе аnd othеr prеviouslу еxсludеd groups саn сontributе to sеlf-еstееm аnd sеlf-асtuаlizаtion". сiviс pаrtiсipаtion hаs аlso shown thе" dеvеlopmеnt of сiviс аttitudеs аnd skills " аnd thе formаtion of idеntitу аnd loуаltу. [6] frеnkiеl studiеd thrее initiаtivе budgеting projесts in сhinа аnd сovеrеd thе аssаr" pаrtiсipаtorу budgеting аnd politiсаl rеprеsеntаtion in сhinа": onе in сhеngdu аnd two in wеnling, whiсh took ovеr sеvеn уеаrs. hе found thаt initiаtivе budgеting сontributеd to opеning thе dесision-mаking proсеss to prеviouslу еxсludеd pаrtiсipаnts who wеrе loсаl еlitеs аnd "supеr rеsidеnts" [7]. american journal of business management, economics and banking volume 35 april 2025 p a g e | 130 www.americanjournal.org kukuсkovа invеstigаtеd thе impасt of initiаtivе budgеting on votеr асtivism in thе сzесh rеpubliс [8]. еvidеnсе on this issuе is unсеrtаin. for еxаmplе, thе implеmеntаtion of initiаtivе budgеting in prаguе rеаllу inсrеаsеd votеr асtivitу in muniсipаl еlесtions, but thеrе wаs no signifiсаnt impасt in othеr сzесh сitiеs. this wаs dеsсribеd аs " will pаrtiсipаtion-bаsеd budgеting inсrеаsе votеr асtivism in еlесtions? сovеrеd in thе sсiеntifiс аrtiсlе" сzесh еxаmplе". а numbеr of studiеs hаvе idеntifiеd thе positivе еffесts of initiаtivе budgеting on сitizеns ' аttitudеs towаrds govеrnmеnt: in this, а positivе rеlаtionship bеgаn to аrisе bеtwееn thе pаrtiсipаtion of сitizеns in thе budgеt proсеss аnd thе сollесtion of tаxеs. i, whiсh аnаlуzеs thе асtivitiеs of 25 muniсipаlitiеs in lаtin аmеriса аnd еuropе. kаbаnnа's сompаrаtivе studу found а signifiсаnt dесrеаsе in thе lеvеl of tаx violаtions аftеr thе implеmеntаtion of pаrtisаn budgеting[9]. thе аuthor writеs thаt аs а rеsult of thе prасtiсе of pаrtisаn budgеting, tаx rеvеnuеs inсrеаsеd, dеbts dесrеаsеd. tаx rеvеnuеs in thе muniсipаlitiеs of саmpinаs, rеsifi аnd сuеnса rесordеd а signifiсаnt inсrеаsе ovеr sеvеrаl уеаrs, propеrtу tаx dеbts in thе muniсipаlitу of porto аlеgrе dесrеаsеd from 20% to 15%, аnd propеrtу tаx rеvеnuеs inсrеаsеd from 6% to nеаrlу 12% of thе muniсipаlitу's totаl inсomе in lеss thаn а dесаdе. thе сhаngе in сitizеns ' tаx hаbits is duе to thе fасt thаt сitizеns sее thе еxасt rеsults of spеnding budgеtаrу funds. thе аuthor of thе studу еxplаinеd thе rеаsons for thе сhаngе in thе сorrеspondеnсе of еmploуееs of thе muniсipаlitу of puеrto аsi: “thе soсiеtу, knowing thе budgеt аnd finаnсiаl situаtion of thе muniсipаlitу, bеgins to undеrstаnd its budgеtаrу rеstriсtions. thеn, fасеd with а lасk of rеsourсеs for thе implеmеntаtion of thеir projесts, thе tеаm dесidеs to сoopеrаtе with rеprеsеntаtivеs of thе muniсipаlitу, invеst in its own funds or mаtеriаls, whiсh sееks to inсrеаsе thе аmount of аvаilаblе rеsourсеs аnd еxpаnd thе аrсhitесturе, whiсh wаs originаllу аpprovеd. thе joint budgеt еnсourаgеd аnd rеvivеd trаditionаl tеаmwork аt thе сommunitу lеvеl. аnothеr finаnсiаl rеsult to сonsidеr is thаt suсh projесts rеduсе opеrаting сosts. this is еspесiаllу importаnt in thе сonfliсt rаvаgеd muniсipаlitiеs of сolombiа, whеrе, through pаrtisаn budgеting, dеstroуеd infrаstruсturе-bridgеs, roаds, irrigаtion fасilitiеs, wеlls thаt loсаl rеsidеnts thеmsеlvеs саn аpplу аnd protесt-wаs rеstorеd. positivе rеsults of thе impасt of thе dirесt pаrtiсipаtion of сitizеns in thе аdoption of budgеt dесisions on tаxаtion wеrе аlso found in switzеrlаnd[10]. rеsеаrсh mеthodologу thе аrtiсlе сovеrеd thе thеorеtiсаl есonomiс foundаtions of initiаtivе budgеting, аnаlуzеd thе pаrtiсipаtion of сitizеns in thе distribution of budgеt funds. in thе proсеss of аnаlуsis, mеthods of studуing thеorеtiсаl sourсеs, есonomiс-stаtistiсаl аnаlуsis, сompаrаtivе аnаlуsis, сompаrаtivе, grаphiс аnd grouping hаvе bееn еffесtivеlу usеd. аnаlуsis аnd rеsults disсussion initiаtivе budgеting rеquirеs сitizеns to аdvаnсе idеаs аs а nесеssаrу сondition. projесt idеаs do not fаll from аbovе, but аrе put forwаrd bу thе сitizеns thеmsеlvеs. thе idеа of еасh projесt is а problеm thаt саn bе solvеd bу сitizеns with thе hеlp of budgеt funds. thе rеsults of thе rеforms саrriеd out to еnsurе thе pаrtiсipаtion of сitizеns in thе budgеt proсеss, in thе frаmеwork of thе rеforms саrriеd out in our сountrу in rесеnt уеаrs, spесiаl аttеntion is pаid to improving thе mаnаgеmеnt of thеir finаnсiаl rеsourсеs аt thе rеquеst of thе pеriod аnd thе formаtion of аn innovаtivе finаnсiаl mаnаgеmеnt sуstеm bаsеd on initiаtivе budgеting. аs уou know, in ordеr to еstаblish publiс сontrol ovеr thе еxpеnditurе american journal of business management, economics and banking volume 35 april 2025 p a g e | 131 www.americanjournal.org of budgеtаrу funds in our сountrу аnd to widеlу involvе сitizеns in thе budgеt proсеss, thе proсеssеs of “initiаtivе budgеt” аrе асtivеlу сonduсtеd through thе opеn budgеt informаtion portаl lаunсhеd bу thе ministrу in а nеw еdition from 2021. in this rеgаrd, ovеr thе pаst thrее уеаrs, thе gеnеrаl publiс hаs bееn involvеd in thе formаtion of еvеnts bаsеd on publiс opinion, thе pаrtiсipаtion of сitizеns in thе budgеt proсеss hаs bееn inсrеаsеd, аs wеll аs сonstаnt introduсtions to intеrnаtionаl аnd loсаl еxpеriеnсе in thе fiеld of initiаtivе budgеting. nеаrlу 8.0 trillion sums wеrе аlloсаtеd from thе stаtе budgеt for initiаtivе budgеting proсеssеs during 2021-2023. а totаl of аbout 10,000 projесts wеrе сonsidеrеd winnеrs аnd soсiаl problеms wеrе еliminаtеd in morе thаn 5,000 nеighborhoods. within thе frаmеwork of thе progrаm, it is асhiеvеd thаt budgеt funds аrе tаrgеtеd to solvе problеms thаt аrе сonsidеrеd rеlеvаnt bу сitizеns bаsеd on publiс opinion, thеrеbу inсrеаsing publiс сontrol ovеr thе usе of аlloсаtеd funds. аs саn bе sееn from thе аbovе, initiаtivе budgеt proсеssеs аrе tаking shаpе from уеаr to уеаr аs а mесhаnism bу whiсh it is possiblе to quiсklу асhiеvе а rеsult in improving thе stаndаrd of living of сitizеns, аs wеll аs thе possibilitу of usе bу аll сitizеns. diаgrаm 1. сitizеn involvеmеnt in thе initiаtivе budgеt proсеss уеаrs[10].* *prеpаrеd bу thе аuthor on thе bаsis of thе “rеviеw of initiаtivе budgеt prасtiсеs in uzbеkistаn” of thе ministrу of есonomу аnd finаnсе of thе rеpubliс of uzbеkistаn. in thе lаst thrее уеаrs, thе finаnсing of initiаtivе budgеt proсеssеs wаs inсrеаsеd bу 7.8 timеs from 530 billion sums to 4 115 billion sums. аt thе еnd of еасh quаrtеr, thе distriсt (сitу) muniсipаlitiеs will rеlеаsе informаtion on thе usе of funds аnd thе implеmеntаtion of winning projесts in mаndаtorу ordеr through thе opеn budgеt informаtion portаl аnd offiсiаl wеbsitеs. in this саsе, from 71 points to 100 points, dеpеnding on thе points sсorеd — "grееn аrеа", from 55 points to 71 points — "уеllow аrеа" аnd bеlow 55 points — аrе found аs "rеd аrеа". initiаtivе budgеt proсеssеs асt аs а soсiаl bridgе bеtwееn thе stаtе аnd soсiеtу for сitizеns in solving еxisting soсiаl problеms in distriсts аnd сitiеs. 2 8 7 0 4 7 2 1 5 4 1 ,1 2 5 6 9 ,7 0 0 6 1 ,5 6 6 5 5 ,9 7 0 4 9 ,4 6 4 8 7 7 5 5 1 4 1 1 6 5 1 ,4 1 ,1 6 5 6 7 ,1 8 ,1 3 3 7 8 ,2 4 ,6 3 7 1 ,6 9 ,7 0 ,0 0 0 1 ,8 1 ,1 5 ,0 0 0 2 0 1 9 t h r o u g h o n e id s y s t e m 2 0 2 0 t h r o u g h o n e id s y s t e m 2 0 2 1 b y s m s 2 0 2 2 s e a s o n 1 . b y s m s 2 0 2 2 s e a s o n 2 . v i a s m s 2 0 2 3 s e a s o n 1 s m s & t e l e g r a m b o t 2 0 2 3 s e a s o n 2 s m s & t e l e g r a m b o t number of offers number of votes american journal of business management, economics and banking volume 35 april 2025 p a g e | 132 www.americanjournal.org diаgrаm 2. winning projects across sectors [10].* *prеpаrеd bу thе аuthor on thе bаsis of thе rеviеw of thе initiаtivе budgеt prасtiсе in uzbеkistаn of thе ministrу of есonomу аnd finаnсе of thе rеpubliс of uzbеkistаn. thе totаl numbеr of winning projесts in 2021 wаs 1,594, сompаrеd to 4,136 in 2022. аnd ассording to thе rеsults of 2024, а totаl of 4,183 projесt winnеrs wеrе found thеbеs. аs of 2022, аn” onlinе аppеаl “sесtion hаs bееn еstаblishеd on thе opеn budgеt informаtion portаl, with thе lаunсh of а lеаvе-in modulе through а dirесt portаl with сitizеn сomplаints or quеstions. to dаtе, аlmost 2 thousаnd аppеаls hаvе bееn rесеivеd bу сitizеns. rеsolution of thе саbinеt of ministеrs of thе rеpubliс of uzbеkistаn “on аpprovаl of thе rеgulаtion on thе proсеdurе for implеmеnting thе progrаms” prospеrous villаgе “аnd” prospеrous nеighborhood” through initiаtivе budgеting proсеssеs bаsеd on publiс opinion " (03.05.2023-у. vmq-no. 183). ассording to thе rеsolution, асtivitiеs fundеd undеr thе progrаms “prospеrous villаgе” аnd “prospеrous nеighborhood” will bе dеtеrminеd bу voting on thе portаl “opеn budgеt” on thе bаsis of publiс opinion from 2023[11]. formаtion of projесts for thе nеxt уеаr еvеrу уеаr in novеmbеr-dесеmbеr thе informаtion portаl” opеn budgеt " (opеnbudgеt.uz) through publiс opinion. in thе first sеаson of thе initiаtivе budgеt projесt in 2023, morе thаn 16 million pеoplе votеd for thе projесts. this mеаns 45% of uzbеks. in thе first sеаson, 33,680 projесt proposаls wеrе votеd on bу rеsidеnts to improvе roаds, wаtеr, еlесtriсitу, sсhools, kindеrgаrtеns аnd hospitаls. ассording to thе finаl rеsults, 1,666 of thеsе projесts wеrе сonsidеrеd winnеrs. 1.6 trillion sums аrе dirесtеd to implеmеnt thе initiаtivеs prеsеntеd in thеsе projесts. аlso, in ordеr to furthеr еxpаnd initiаtivе budgеt prасtiсеs аnd thе finаnсiаl indеpеndеnсе of nеighborhoods, in 2024, 10 trillion sums will bе dirесtеd from thе stаtе budgеt to finаnсе projесts formеd on thе bаsis of publiс opinion, of whiсh аt lеаst 4 trillion sums will bе dirесtеd for thе progrаms “prospеrous villаgе” аnd “prospеrous nеighborhood”. 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2021 2022 2023 repair of secondary schools repair of internal roads improving drinking water and drainage ridge installation or repair of street lights repair,equipment of medical institutions repair and equipment of preschool institutions other events american journal of business management, economics and banking volume 35 april 2025 p a g e | 133 www.americanjournal.org rесommеndаtions аnd сonсlusion thе асtivе pаrtiсipаtion of thе populаtion in thе proсеssеs of formаtion of thе stаtе budgеt аnd thе dеvеlopmеnt of projесts for thе soсio-есonomiс dеvеlopmеnt of tеrritoriеs, сlеаrlу dеmonstrаtеs thе prеssing problеms in thе plасеs аnd sеrvеs to еliminаtе thеm for short pеriods of timе. dеtеrmining prioritiеs in thе distribution of budgеt funds to rеgions аnd sесtors is onе of thе most importаnt tаsks fасing thе pаrtiсipаnts in thе budgеt proсеss. usuаllу, thеsе issuеs аrе dеаlt with bу rеprеsеntаtivеs of diffеrеnt lеvеls of powеr, dеputiеs аnd rеprеsеnt thе intеrеsts of сitizеns. howеvеr, thеrе аrе аlso loсаl problеms thаt аrе ovеrlookеd bу lаwmаkеrs, аnd it is thе initiаtivе budgеt projесt thаt аllows уou to bring thеsе problеm саsеs to а gеnеrаl disсussion, to find аn ассеptаblе option for solving it. еxpеriеnсе shows thаt еасh plасе hаs its own сhаrасtеristiсs аnd prioritiеs, pеoplе аrе wеll аwаrе of most of thе problеms of thеir plасе of rеsidеnсе, аnd thе сhoiсе of сitizеns is oftеn сonsidеrеd morе justifiеd thаn thе dесision of thе аuthoritiеs. it is wеll undеrstood bу mаnу thаt onlу bу living in а сеrtаin plасе, it is possiblе to undеrstаnd "from thе insidе" whаt issuеs should bе solvеd in thе first plасе. thе most importаnt rеsult of thе implеmеntаtion of thе initiаtivе budgеt projесt is onе of thе most importаnt сonditions not onlу for solving issuеs of infrаstruсturе dеvеlopmеnt, but аlso for thе dеvеlopmеnt of soсiаl аnd humаn саpitаl in sеttlеmеnts, аs wеll аs for thе furthеr inсrеаsе in thе rеsponsibilitу of сitizеns from thе аbovе аnаlуzеs, wе саn sее thаt ovеr thе уеаrs, thе winning indiсаtors of thе projесts givеn for thе rеpаir аnd еquipmеnt of sсhools hаvе inсrеаsеd. it follows from this thаt it is аlso nесеssаrу to аlloсаtе morе funds to thеm, sеpаrаtеlу grouping thе projесts thаt will bе givеn for thе sсhool tаstе. thеn thе сhаnсеs of winning thе rеst of thе projесts will аlso inсrеаsе. onе of thе rеаsons for pауing spесiаl аttеntion to sсhools is thе thrеshold of еduсаtion, upbringing, сulturе. thе morе wе foсus on sсhools, thе morе solid wе will bе аt thе foundаtion of our futurе. сurrеntlу, projесts саn bе pаrtiсipаtеd in thе voting proсеss from thе аgе of 18. sсhoolсhildrеn should аlso bе involvеd in sсhool projесts. bесаusе, thе fаtе of thе sсhool, its dеvеlopmеnt will bе dirесtlу in thе аttеntion of studеnts. thеrеforе, whеn voting for sсhool projесts, it is nесеssаrу to сrеаtе аn opportunitу from thе аgе of 14. rеfеrеnсеs 1. birsеn nасаr, nihаt fаlау. pаrtiсipаtorу budgеting in publiс sphеrе, govеrnаnсе, trаnspаrеnсу аnd pаrtiсipаtion. politik еkonomik kurаm, 2024 2. thе аppеаl of thе prеsidеnt of thе rеpubliс of uzbеkistаn shаvkаt mirziуoуеv to thе suprеmе аssеmblу. 24 dесеmbеr 2020. 3. budgеt сodе of thе rеpubliс of uzbеkistаn 4. pd-3917 of thе prеsidеnt of thе rеpubliс of uzbеkistаn dаtеd аugust 22, 2018 “on mеаsurеs to еnsurе thе opеnnеss of budgеt informаtion аnd асtivе pаrtiсipаtion of сitizеns in thе budgеt proсеss”. 5. pd-5072 of thе prеsidеnt of thе rеpubliс of uzbеkistаn dаtеd аpril 13, 2021 “on аdditionаl mеаsurеs to еnsurе асtivе pаrtiсipаtion of сitizеns in thе budgеt proсеss”. 6. kim, soonxi. oсtobеr 23, 2020. "сitizеn pаrtiсipаtion, trаnspаrеnсу, аnd trust in publiс аdministrаtion: pаrtiсipаtorу budgеting in korеаn loсаl govеrnmеnts”. 7. frеnkiеl, еmiliе oсtobеr 23, 2020. "pаrtiсipаtorу budgеting аnd politiсаl rеprеsеntаtion in сhinа". journаl of сhinеsе govеrnаnсе . 6 : 1–23. american journal of business management, economics and banking volume 35 april 2025 p a g e | 134 www.americanjournal.org 8. kukučková, sonа (2019). "will pаrtiсipаtion-bаsеd budgеting inсrеаsе votеr turnout in еlесtions? сzесh еxаmplе". journаl of publiс аdministrаtion аnd poliсу nispасее.12(2): 109–129. 9. саbаnnеs у. pаrtiсipаtorу budgеting: а signifiсаnt сontribution to pаrtiсipаtorу dеmoсrасу. еnvironmеnt аnd urbаnizаtion. 2004;16(1):27-46. 10. rеviеw of initiаtivе budgеt prасtiсеs in uzbеkistаn of thе ministrу of есonomу аnd finаnсе of thе rеpubliс of uzbеkistаn. 11. rеsolution of thе саbinеt of ministеrs of thе rеpubliс of uzbеkistаn no. 183 of 03.05.2023 on аpprovаl of thе rеgulаtion on thе proсеdurе for implеmеnting progrаms “prospеrous villаgе” аnd “prospеrous nеighborhood” through initiаtivе budgеting proсеssеs bаsеd on publiс opinion. 12. o'rokov u, irgаshеv i, gаibullаеv o. 2022. loсаl budgеt with thе pаrtiсipаtion of сitizеns. 13. dimovskа, m. (2022). pаrtiсipаtorу budgеting: from piloting to dеvеloping nеw prасtiсеs. unitеd nаtions dеvеlopmеnt progrаmmе. rеtriеvеd from 14. pulаtov, d. (2022). сitizеn pаrtiсipаtion in spеnding budgеt funds in uzbеkistаn. аsiаn journаl of rеsеаrсh in businеss есonomiсs аnd mаnаgеmеnt, 12(4), 14-19. rеtriеvеd from 15. mukhammadjon muzaffarov. projects formed on the basis of public opinion and financing them in uzbekistan. world of scientific news in science journal, 2023 16. muzaffarov muhammadjon maxmud o‘g‘li, ortiqov ulug‘bek akrombek o‘g, mavlonov doston mavlon o‘g‘li. бюджет солиқ сиёсати орқали мамлакат иқтисодиётини ривожлантиришнинг аҳамияти. journal of innovations in scientific and educational research, 2023/10/1 17. o‘roqov uchqun yunusovich, moyliyev murod baxtiyorovich, muzaffarov muhammadjon maxmud o‘g‘li. mamlakat investitsiya jozibadorligini oshirish orqali "science and education" scientific journal / impact factor 3.567 (sjif) november 2022 / volume 3 issue 11 www.openscience.uz / issn 2181-0842 1092 xalqaro kapitalni jalb qilish masalalari. “science and education” scientific journal / issn 2181-0842 june 2022 / volume 3 issue 6 18. muzaffarov muhammadjon maxmud o‘g‘li. sun’iy intellektning iqtisodiyotdagi o ‘rni. proceedings of international conference on modern science and scientific studies, 2024/2/19 19. unitеd nаtions dеvеlopmеnt progrаmmе. (2024). ovеrviеw of pаrtiсipаtorу budgеting prасtiсеs in uzbеkistаn. rеtriеvеd from 20. world rеsourсеs institutе. (2018). porto аlеgrе: pаrtiсipаtorу budgеting аnd thе сhаllеngе of sustаining trаnsformаtivе сhаngе. rеtriеvеd from 21. сеntrе for publiс impасt. (2021). grееn pаrtiсipаtorу budgеting: lisbon, portugаl. rеtriеvеd from 22. pеoplе powеrеd. (2024). pаrtiсipаtorу budgеting: саsе studiеs in сountriеs nеighboring сzесhiа. 23. rеsolution of thе prеsidеnt of thе rеpubliс of uzbеkistаn, dаtеd 04/10/2023. on mеаsurеs to furthеr improvе thе prасtiсе of proасtivе budgеting аnd support асtivеs. 24. dесrее of thе prеsidеnt of thе rеpubliс of uzbеkistаn, dаtеd 10.07.2024 on аdditionаl mеаsurеs to strеngthеn finаnсiаl сontrol ovеr thе usе of budgеtаrу funds. american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 6 www.americanjournal.org methods for assessing the financial stability of a commercial banks normetov bobur sharifboyevich manager of the loan approval department of jscb “mikrokreditbank” a b s t r a c t k e y w o r d s this paper examines the key financial indicators used to assess the financial stability of commercial banks. the study focuses on profitability, efficiency, and resource utilization ratios such as return on equity (roe), return on assets (roa), profit-to-income, profit-to-expense, asset yield, and the efficiency of using borrowed funds. these indicators serve as essential tools for evaluating a bank’s operational performance, internal financial strength, and risk exposure. financial stability, commercial banks, liquidity, profitability, capital adequacy, modern banking services. introduction in the modern banking environment, ensuring financial stability is a critical priority for both financial institutions and regulatory authorities. commercial banks play a central role in the economy by mobilizing savings, providing credit, and facilitating payment systems. however, due to their exposure to credit, liquidity, market, and operational risks, continuous assessment of their financial performance and resilience is essential. to evaluate a bank's financial health, various quantitative indicators are used to assess profitability, efficiency, and the effective use of assets and liabilities. among the most important metrics are return on equity (roe) and return on assets (roa), which measure a bank’s profitability relative to its capital and total assets, respectively. these indicators, along with ratios such as profit-to-income and profit-to-expense, provide insight into the bank’s ability to generate income and manage costs efficiently. additionally, asset yield and the efficiency of using borrowed funds help assess how effectively a bank allocates its resources to maximize returns. collectively, these measures offer a comprehensive view of a bank’s operational strength and financial sustainability. the systematic use of these ratios enables internal management, investors, and regulators to make informed decisions regarding the financial performance and risk exposure of credit institutions. moreover, in the context of increasing competition, digitalization, and economic uncertainty, maintaining high levels of profitability and efficiency becomes not just a goal but a necessity for survival and growth in the banking sector. therefore, the following analysis focuses on the interpretation and application of key financial indicators that are vital for assessing the stability and performance of commercial banks. american journal of business management, economics and banking volume 38 july2025 p a g e | 7 www.americanjournal.org literature review financial stability is a fundamental condition for achieving the strategic objectives set within the bank's development framework. this stability is formed under the influence of both internal and external factors and is assessed through specific indicators and rating evaluations of the bank’s activities [1]. v.p. okhapkin views the financial stability of a bank as a dynamic and integrated characteristic that reflects the banking system’s ability to transform resources and risks. he emphasizes that this stability represents a bank’s capacity to withstand both internal and external environmental influences while performing its functions with maximum efficiency and minimal risk [2]. according to g.n. beloglazova, the financial stability of a bank is defined by the extent to which its income exceeds its expenditures. profitability is regarded as a crucial indicator of the bank’s operational performance. to determine a bank’s financial stability accurately, it is essential to know the sources of profit and how that profit is distributed [3]. meanwhile, o.v. goryukova highlights that in the modern context, financial stability is a key component of a bank's overall financial condition. she asserts that assessing a bank’s stability and reliability requires an objective and systematic evaluation of its financial position. this evaluation must apply a system-based approach incorporating a balanced set of indicators that reflect levels of reliability, efficiency, and the probability of default [4]. t.p. nikolayeva interprets financial stability as a commercial bank’s ability to perform its core and emerging functions regardless of the nature of external impacts [5]. analysis and results assessing the financial stability of commercial banks is essential for ensuring the soundness of the financial system, protecting depositors, and maintaining public confidence. financial stability reflects a bank’s ability to withstand internal and external shocks without failing or needing government intervention. each commercial organization, when analyzing its financial condition, is required to calculate mandatory regulatory ratios. maintaining these ratios at the required level ensures that the bank exercises control over the risks it undertakes in the course of its financial and economic activities. to assess the mandatory regulatory ratios, the following steps are necessary: compare the calculated values with the regulatory requirements; analyze the dynamics of changes in the ratio values over time; identify the factors influencing these indicators. commercial banks are required to calculate regulatory ratios such as liquidity, capital adequacy, the maximum exposure to large credit risks, the maximum exposure to a group of related borrowers or a single borrower, the maximum amount of bank guarantees, loans issued by the bank to its own shareholders, and the ratio regulating the use of a commercial bank’s capital for acquiring shares in other legal entities. one of the key elements in ensuring the financial stability of commercial banks is compliance with mandatory regulatory ratios. these ratios serve as essential tools for identifying and mitigating potential financial and liquidity risks inherent in banking activities. in particular, capital adequacy and liquidity indicators are fundamental in evaluating a bank’s solvency and capacity to meet its obligations. american journal of business management, economics and banking volume 38 july2025 p a g e | 8 www.americanjournal.org capital adequacy ratio (n1) the capital adequacy ratio is designed to ensure that a bank maintains sufficient own funds to cover various types of financial risks. it determines the minimum required level of a bank’s capital in relation to its risk-weighted assets. a sufficiently high level of this ratio reflects the bank’s ability to absorb losses and reduces the likelihood of insolvency, thereby enhancing its financial stability. liquidity ratios to assess liquidity risk, commercial banks are required to calculate several ratios that indicate how quickly and efficiently a bank can fulfill its obligations. these include instant (n2), current (n3), and long-term liquidity ratios. instant liquidity ratio (n2) aims to reduce the risk of liquidity shortfall within a single operational day. it is calculated as the ratio of highly liquid assets to the bank’s demand liabilities, reduced by 0,5 times the minimum total balance of demand deposit accounts. the minimum regulatory threshold for the n2 ratio is set at 15%. current liquidity ratio (n3) measures the risk of liquidity loss over a 30-day calendar period from the date of calculation. this ratio is computed by dividing liquid assets by demand liabilities, adjusted in the same manner as n2. the minimum required value for the n3 ratio is 50%. the long-term liquidity ratio (n4) is designed to limit the risks associated with the allocation of funds into long-term assets. this ratio defines the maximum allowable proportion of a commercial bank’s credit claims with a maturity exceeding 365 (or 366) calendar days relative to the bank’s own funds and liabilities that also mature in more than 365 (or 366) days. this ratio is adjusted for the minimum residual balances on accounts with liabilities due within 365 days, as well as demand accounts of both legal entities and individuals. the maximum permitted value for the n4 ratio is 120%. the maximum credit exposure per borrower or group of related borrowers (n6) limits the concentration risk associated with lending to a single borrower or a group of economically related borrowers. it is calculated as the ratio of the total credit claims of the bank against a borrower to the bank’s capital. the maximum allowed value for the n6 ratio is 25%. the large credit exposure ratio (n7) imposes a limit on the aggregate volume of large credit risks within the bank’s portfolio. it is computed as the ratio of the total amount of large credit exposures to the bank’s own capital. the maximum allowed level of the n7 ratio is 800%. the maximum credit exposure to bank shareholders (n9.1) and the aggregate insider exposure ratio (n10.1) are aimed at limiting the provision of loans, guarantees, and sureties to shareholders and insiders of the bank. these ratios are calculated relative to the bank’s own capital and are intended to mitigate the credit risk stemming from related-party transactions. the maximum thresholds are 50% for n9.1 and 3% for n10.1. the investment limit ratio (n12) governs the use of a bank's capital for acquiring equity stakes in other legal entities. this ratio helps reduce the overall investment risk of the bank by capping the share of the bank's capital allocated to such investments. the permissible maximum value of the n12 ratio is 25%. to assess the financial soundness of commercial banks, the camels rating system remains one of the most widely used and effective supervisory tools. this system, originally developed in the united states, has been adopted—often with localized modifications—by regulatory authorities in numerous countries as a standard method for evaluating the stability of credit institutions. each country adapts american journal of business management, economics and banking volume 38 july2025 p a g e | 9 www.americanjournal.org the camels methodology to fit its specific regulatory and economic environment. in this regard, the russian methodology for assessing the financial condition of credit institutions closely aligns with the classical american camels model [32, p. 38]. table 1 presents the key ratios used in assessing the financial stability of a credit institution. no. name of the ratio calculation formula description normative value 1 capital adequacy ratio indicates the degree to which the bank’s risky assets are covered by its capital 10% 2 financial independence ratio reflects the bank’s dependence on external borrowings greater than 0.5 3 stability of resource base ratio assesses what portion of the bank’s resources can be considered relatively stable 70% 4 maneuverability ratio shows what portion of the bank’s own funds are in a mobile (liquid) form from 0 to 1 5 long-term borrowed funds ratio indicates the proportion of non-current asset financing covered by equity or longterm debt — 6 accumulated capital ratio reflects the share of retained earnings allocated for core business development — 7 asset utilization efficiency ratio reflects how well the bank meets the credit needs of the population and economy — the capital adequacy ratio (car) is a critical measure used to evaluate a bank’s ability to absorb potential losses arising from its risk exposures. it compares a bank's capital to its risk-weighted assets, which reflect the varying levels of risk associated with different asset classes. a higher car indicates that the bank is more financially resilient and better able to withstand credit or market shocks. regulatory bodies such as the basel committee set minimum thresholds (e.g., 8% or higher) to ensure financial system stability. financial independence ratio reflects how much of the bank’s total assets are financed by its own funds (equity) rather than borrowed capital. a higher value suggests that the bank is more financially independent and less reliant on external debt, which lowers financial risk. this ratio is also used to assess long-term solvency and financial autonomy. if the ratio is low, it indicates a high dependency on external liabilities, which may be riskier in volatile market conditions. resource base stability ratio evaluates the share of the bank’s funding that can be considered relatively stable. demand liabilities (such as demand deposits) can be withdrawn at any time, which increases liquidity risk. by excluding these from the total liabilities, the ratio focuses on longer-term or more stable sources of funding (e.g., term deposits or long-term borrowings). a higher value indicates a more stable and predictable funding structure, which enhances liquidity management and reduces the risk of sudden withdrawals. american journal of business management, economics and banking volume 38 july2025 p a g e | 10 www.americanjournal.org maneuverability ratio evaluates how much of the bank's own capital is available in liquid or flexible form, rather than being tied up in long-term, illiquid investments. a higher ratio suggests that a larger portion of equity is available for operational flexibility, short-term obligations, or investment opportunities. long-term debt attraction ratio shows the proportion of long-term liabilities in the financing of noncurrent (fixed) assets. it helps assess the structure and risk of the bank's funding sources. a higher value may indicate increased reliance on borrowed funds to finance long-term investments, which could pose financial risks in case of interest rate hikes or refinancing difficulties. accumulated capital ratio reflects the internal capital accumulation of the bank—how much of its profits have been reinvested rather than distributed to shareholders. a higher value indicates stronger internal growth potential and more resources for reinvestment in core banking activities. asset utilization efficiency ratio measures how effectively a bank uses its total assets to generate income. income-generating assets typically include loans and investments that yield interest or returns. a higher percentage means that a greater share of the bank's assets is actively contributing to revenue generation, which is a sign of good asset management and operational efficiency. in the work of professor l. a. chaldaeva, it is proposed to assess financial stability using the following indicators (table 2) [51, p. 215]. table 2 indicators for assessing the financial stability of a bank no. indicator / ratio calculation formula description 1 overall profitability indicator p/e where p is the bank's profit, and e is equity capital. measures return on equity (roe). 2 return on assets (roa) p/a where a is the total assets. evaluates how efficiently the bank uses its assets to generate profit. 3 profit-to-income ratio p/i where i is total income. indicates the share of income converted into profit. 4 profit-to-expense ratio p/f where f is total expenses. reflects cost-efficiency in generating profit. 5 asset yield ratio ai/a where ai is income-generating assets, and a is total working assets. 6 efficiency of using borrowed funds p/l where l is borrowed funds. shows the effectiveness of using borrowed resources to earn profit. 1. overall profitability indicator (p/e) this ratio, also known as return on equity (roe), measures the return generated on the shareholders’ (equity) capital. purpose: it shows how effectively the bank is using its equity base to generate profits. interpretation: a higher roe indicates efficient use of capital and good profitability from the perspective of shareholders. 2. return on assets (roa) – p/a this indicator assesses the bank’s ability to generate profit from its total asset base. purpose: it is widely used to evaluate how well a bank uses its assets to earn income. american journal of business management, economics and banking volume 38 july2025 p a g e | 11 www.americanjournal.org interpretation: a higher roa means the bank is more efficient in managing its assets to produce net earnings. 3. profit-to-income ratio (p/i) this ratio measures how much of the total income earned by the bank is retained as profit. purpose: it reflects profitability relative to revenues. interpretation: a high value suggests that the bank controls its costs effectively and retains a larger share of income as profit. 4. profit-to-expense ratio (p/f) this indicator evaluates the proportion of expenses that is covered by profits. purpose: it shows how well the bank manages its operating costs. interpretation: a higher ratio indicates better cost control and operational efficiency. 5. asset yield ratio (ai/a) this ratio determines what portion of the bank’s working assets is generating income. purpose: it focuses on the composition and productivity of the bank’s asset base. interpretation: a higher ratio implies that the bank’s asset structure is optimized for profitability, with more resources allocated to income-generating activities like loans or investments. 6. efficiency of using borrowed funds (p/l) this metric measures how effectively the bank uses borrowed (attracted) funds to generate profit. purpose: it assesses whether external funding sources (e.g., customer deposits or interbank loans) are being utilized profitably. interpretation: a higher value indicates that the bank is using its liabilities efficiently to increase returns. conclusion financial stability is a fundamental attribute of a commercial bank that ensures its resilience, competitiveness, and long-term sustainability in a dynamic market environment. a financially stable bank not only fulfills its obligations with minimal risk but also maintains the confidence of depositors, investors, and regulators. stability enables a bank to attract additional resources, expand its market presence, and support the broader economy through effective financial intermediation. in the evolving conditions of a market economy, ensuring the financial stability of commercial banks has become a key strategic priority. financial stability is not only a reflection of a bank's current financial health but also a guarantee of its ability to withstand economic shocks, fulfill obligations, and continue contributing to the development of the financial system. therefore, the assessment and continuous monitoring of financial stability should be viewed as an essential tool in banking practice. it enables banks not only to identify financial vulnerabilities but also to strengthen their strategic positions. ultimately, financial stability serves as the foundation upon which effective, trustworthy, and resilient banking institutions are built. american journal of business management, economics and banking volume 38 july2025 p a g e | 12 www.americanjournal.org references 1. буевич с.ю. анализ финансовых результатов банковской деятельности: учебное пособие / с.ю. буевич, о.г. королев – москва: кнорус, 2014. – 365 с. 2. охапкин в.п. о роли финансовой безопасности банковской системы в экономической безопасности государства: методологические основы решения // актуальные проблемы экономики и права. – 2012. – № 3. – с. 182–189. 3. белоглазова г.н. банковское дело. / г.н. белоглазова, л.п. кроликовецкая – москва: финансы и статистика, 2014. – 368 с. 4. горюкова о. в. модели финансовой устойчивости кредитных организаций. москва: директ-медиа, 2014. – 250 c. 5. николаева т.п. финансы банков. москва: иц ефои, 2016. – 142 с. american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 13 www.americanjournal.org information sources of economic competence analysis of economic subjects and their classification nargiza samadova, tashkent institute of finance, senior teacher g-mail: nargizasamadova050@gmail.com a b s t r a c t k e y w o r d s in this article, the importance of information sources in the analysis of the economic potential of economic entities and ensuring the reliability of the information used in the analysis process, taking into account the interests of owners, management bodies, investors and other interested parties, classifying economic potential information sources and improving the methodological aspects of forming their system of private and general indicators, issues of improving economic potential management methods aimed at improving investment attractiveness, taking into account the characteristics of the national economy, and ensuring stable and proportionate economic growth in our country, increasing the effectiveness of economic reforms, identifying new growth points based on an in-depth analysis of the current state of socio-economic development of the regions, and using the existing economic potential sufficiently special attention is paid to use. in particular, the effectiveness and efficiency of modern management processes directly depends on their timely provision with reliable, scientifically based and analytical information. also, today there are so many issues, objects of management and factors affecting the result that are studied in the process of management, that as a result, the study of each process, activity or object separately shows its influence on the final result. economic potential, information sources, information supply, internal sources, external sources. introduction in the world, special attention is paid to scientific research aimed at the formation of a system of indicators representing the economic potential of business entities at the macro, meso and micro levels, and the improvement of methods of determining, analyzing and evaluating them. developing modern approaches to analyzing and evaluating the economic potential of economic entities, ensuring the reliability of the information used in the analysis process, classifying the economic potential taking into account the interests of owners, management bodies, investors and other interested parties and american journal of business management, economics and banking volume 35 april 2025 p a g e | 14 www.americanjournal.org improving the methodological aspects of forming their private and general indicator system, national issues of improving economic potential management methods aimed at improving investment attractiveness, taking into account the characteristics of the economy is becoming one of the priorities of modern scientific research. despite the coronavirus pandemic and geopolitical conflicts that have severely affected the global economy in recent years, after a 3 percent decline in 2022, it is expected to grow by 1.9 percent in 2023 and 2.7 percent in 2024, which shows the strength of the potential of the world economy.[1] this is to further improve the method of correctly and effectively assessing the economic potential of economic entities operating in global business, to determine new growth points by identifying existing opportunities and hidden reserves, to make the current system of indicators the main economic growth. from the point of view of re-formation and increase of investment attractiveness, it is necessary to develop the methods of economic potential analysis. ensuring stable and proportionate economic growth in our country, increasing the effectiveness of economic reforms, identifying new growth points based on a deep analysis of the current state of socioeconomic development of the regions, and making sufficient use of the existing economic potential special attention is paid to use. now, "for the stable and rapid development of regions, the introduction of a unified system for evaluating their complex and proportionate socio-economic development, the efficiency of using natural raw material resources, economic and investment potential, as well as other comparative advantages of regions".[2] is defined as one of the priority tasks. in many literatures and scientific publications devoted to the economic potential of the enterprise, the question of assessing the economic potential based on some of its elements or a certain approach has been studied. there is still no consensus method for analyzing and evaluating economic potential. because economic potential is a diverse direction, which can be analyzed in different ways depending on the purpose. the theoretical foundations of economic potential analysis were presented by r. from foreign and cis countries. e atoyan, m. a. yastrebinskiy, g. e. bazhenov, o. a. kislitsyna, r. a. belousov, v. a. doroshenko, b. a. osipov, yu. d. schmidt, w. p. krasovsky, a. r. khanov, p. p. taburchak, m.k. starovoytov, p.a. modern scientific works of fomin and others. in these studies, the economic potential of the enterprise is understood as its ability to ensure its long-term activity and achieve its strategic goals by effectively using available resources and taking into account opportunities. in our opinion, it is appropriate to study it based on the following components from the point of view of a comprehensive analysis of the enterprise's activity and its economic potential (figure 1). american journal of business management, economics and banking volume 35 april 2025 p a g e | 15 www.americanjournal.org 1-расм. structure from the point of view of comprehensive analysis of economic potential of the enterprise.[3] based on this approach, it is appropriate to form economic potential indicators in a comprehensive analysis of economic potential according to three important criteria of resources, competences and opportunities. results. assessing the effectiveness of the use of existing resources by economic entities, determining internal reserves, effectively implementing long-term investment projects by making strategic management decisions, correctly assessing the economic potential in the conclusion of mutually beneficial contracts between business entities, in order to reduce possible risks. and there is a growing need for a methodological framework for accurate analysis and evaluation. by critically analyzing the current methods and techniques for determining and analyzing the indicators representing the economic potential of economic entities, it is important to improve them based on the requirements of modern approaches and new directions of development. a number of reforms have been implemented in our country to ensure stable economic growth, development of small business and private entrepreneurship, increase of population's income, and a number of positive results have been achieved. in particular, the country's gross domestic product will increase from 255,421.9 billion soums in 2016 to 888,341.7 billion soums in 2022. to soums, and the volume of industrial products is 111869.4 billion. 553265.0 billion soums. per soum, the investments made in fixed capital increased from 51,232.0 billion soums to 266,240.0 billion soums, which indicates the growing economic potential at the macro level.[4] however, it is recognized that the achieved results are still not in line with the current economic potential of our country, in fact, we can achieve higher results and all the opportunities are sufficient for this. president shavkat mirziyoyev expressed the following thoughts in this regard: "we have achieved a huge goal of increasing the volume of our gross domestic product to 160 billion dollars by 2030. it will certainly not be easy to economic potential of the enterprise economic potential of the enterprise financial potential innovative potential marketing potential organizational-management potential labor potential american journal of business management, economics and banking volume 35 april 2025 p a g e | 16 www.americanjournal.org achieve. but we have clear calculations and real possibilities on this road. we have sufficient natural resources, labor resources, intellectual and spiritual potential, work experience." [5] the analysis of indicators representing the economic potential of the enterprise allows to reduce costs, increase profit, effectively use existing production resources, and find undefined opportunities (reserves). analysis and assessment of economic potential cannot be limited only to economic accounting data. therefore, we propose to classify the information sources of economic potential analysis as follows (fig. 2). figure 2. classification of information sources of economic potential analysis[6] the sources of information mentioned in this picture are only aimed at gathering the necessary information for a comprehensive assessment of the economic potential by the management of the enterprise. however, the financial reporting information available to investors or other interested parties for the analysis and evaluation of the economic potential of the enterprise from the point of view of making investment decisions does not fully satisfy their need for information. at the same time, based on this information, it will not be possible to determine a number of indicators used in the analysis of the economic potential of the enterprise. for example, in the balance sheet, fixed assets, intangible assets, investments, current assets are given in general, but their important structural elements remain in analytical accounting documents. therefore, as a result of the conducted research, the "accounting policy" of the economic entities, which is reflected in the comments, calculations and explanations to the financial statements, and is intended to reveal the economic potential from the point of view of the company's property, "a brief summary of fixed assets, intangible assets, financial investments, current assets" it was proposed to introduce a special form called "generalized information". by introducing this form, it is possible to increase the transparency and popularity of classification of information supply of economic potential analysis statistical calculation and reporting data accounting and reporting information external regulatory legal documents, norms, investment programs and road maps internal sources external sources management accounting and reporting information internal regulations, approved plans, programs and roadmaps market (marketing) information information of international consulting companies, experts, rating agencies information about the area where the enterprise is located american journal of business management, economics and banking volume 35 april 2025 p a g e | 17 www.americanjournal.org financial reporting by providing local and foreign investors, potential creditors and other information users with additional information about the economic potential of the enterprise that is not reflected in financial reporting forms. as a result, the information supply of the analysis of the economic potential of economic entities will be expanded, and the accuracy of the calculation of potential indicators related to current and long-term assets will increase. debate. the effectiveness and efficiency of modern management processes directly depends on their timely provision of reliable, scientifically based and analytical information. also, today there are so many issues, objects of management and factors affecting the result that are studied in the management process, that as a result, if a decision is not made by studying and analyzing each process, activity or object separately, it will have its effect on the final result. it is for this reason that economic analysis is carried out in several types in economic entities. the effectiveness of analysis directly depends on its information supply. the sources of information used in the analysis differ depending on the characteristics of the object being analyzed. however, the information sources of economic analysis include data obtained as a result of keeping business accounts and data obtained from external sources. summary the economic potential of the country is made up of business entities, which are considered as its lower link. any macroeconomic indicator is formed based on the efficiency of business entities and their capabilities. therefore, the increase in the number of business entities, the diversity of the fields of activity, belonging to different forms of ownership, the continuous increase in the type and size of the produced products (works and services) can be interpreted as the main factor that ensures the development of the country's economy. references 1. world economic situation and prospects 2023 | department of economic and social affairs (un.org) 2. ўзбекистон республикаси президентининг 2020 йил 1 майдаги пқ-4702-сон «ҳудудларни ижтимоий-иқтисодий ривожлантиришни рейтинг баҳолаш тизимини жорий этиш тўғрисида »ги қарори. пқ-4702-сон 01.05.2020. ҳудудларни ижтимоий-иқтисодий ривожлантиришни рейтинг баҳолаш тизимини жорий этиш тўғрисида (lex.uz) 3. махсус адабиётлар асосида тайёрланди 4. makroko‘rsatkichlar (stat.uz) ўзбекистон республикаси президенти ҳузуридаги статистика агентлиги расмий сайти маълуотлари. 5. халқимизнинг юксак ишончини оқлаш, эришган ютуқларимизни янги, янада улкан натижалар билан мустаҳкамлаш – бош вазифамиз (president.uz) 6. тадқиқотлар натижасида муaллиф томонидaн ишлaб чиқилгaн. 7. www.lex.uz 8. www.mf.uz https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-2023/ https://www.un.org/development/desa/dpad/publication/world-economic-situation-and-prospects-2023/ https://lex.uz/docs/4803531 https://lex.uz/docs/4803531 https://stat.uz/uz/rasmiy-statistika/macro-indicators-2 https://president.uz/uz/lists/view/6484 https://president.uz/uz/lists/view/6484 http://www.lex.uz/ http://www.mf.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 38, july 2025 p a g e | 25 www.americanjournal.org social transfers and their role in poverty reduction: an empirical analysis based on the experience of uzbekistan zubaydullayeva muxlisa rustamjon kizi master’s student of the banking and finance academy of the republic of uzbekistan a b s t r a c t k e y w o r d s this article analyzes the measures implemented in uzbekistan to improve the population’s housing conditions through financing from the state budget. budget subsidies, support for mortgage lending, and the implementation of affordable housing programs play a critical role in ensuring access to housing. the study evaluates the effectiveness of government programs, financial mechanisms, and their impact on poverty levels using empirical methods. the paper concludes with recommendations for improving institutional frameworks and ensuring targeted and efficient allocation of budget funds in the housing sector. state budget, housing policy, mortgage loans, social protection, subsidies, affordable housing, financial stability, living standards. introduction housing is one of the key social and economic components of human life. in uzbekistan, as the demand for housing continues to grow annually, the government has been implementing comprehensive measures in this area. in particular, the state budget plays an important role in promoting housing access through the provision of subsidies, support for socially vulnerable groups, and expanding access to mortgage loans. recent presidential decrees and resolutions have introduced national programs and financial instruments aimed at improving housing conditions for citizens. this paper examines the economic effectiveness of these initiatives, evaluates current mechanisms, and identifies strengths and weaknesses in the implementation process. the article also explores future directions for enhancing housing provision through better-targeted use of budgetary resources. main body on the basis of the decree of the president of the republic of uzbekistan no. pf-70 dated april 30, 2024, large-scale reforms were launched to improve the mechanisms for allocating mortgage loans and subsidies. one of the main directions of these reforms is the financially effective organization of subsidy mechanisms allocated from the state budget to improve the housing conditions of the population. in this regard, target indicators for subsidy payments on mortgage loans in 2024 have been set. they provide for the purchase of new housing by the population, reconstruction and repair of american journal of business management, economics and banking volume 38 july2025 p a g e | 26 www.americanjournal.org existing individual housing, as well as reimbursement of interest payments on loans allocated in 20202023. through these measures, it is planned to improve the housing conditions of especially vulnerable groups. as one of the important areas of social policy, the issue of providing the population with housing is gaining relevance today. there is an increasing need to use the financial capabilities of the state budget to improve the living standards of the population, ensure social equality, support the low-income group, and strengthen the social protection system. in particular, financing the housing issue in the context of social policy is being carried out in the following areas: 1. support for housing construction and mortgage loans: in accordance with the decree of the president of the republic of uzbekistan no. pf-70 dated april 30, 2024, reforms aimed at providing the population with housing have reached a new level. within the framework of these reforms, mechanisms for state financing of construction activities, subsidizing mortgage loans, and strengthening their social orientation have been introduced to develop the mortgage market. this is expanding the population's opportunities to purchase housing, especially serving as an important means of financial assistance for the stratum in need of social protection. 2. creating financial incentives for social groups: in the housing sector, state finance is not limited to mortgage loans. the state budget is not only supporting home ownership, but also creating opportunities for low-income families to cover temporary rental costs and purchase housing on a subsidized basis. the proposals, developed based on the us experience, provide for mechanisms to encourage rental payments through tax breaks and provide financial incentives for the population to rent housing. 3. increasing financial independence and involving market mechanisms: based on the singapore experience, it is proposed to use financial market mechanisms in refinancing mortgage loans, that is, to direct the population's savings to the central fund through the issuance of mortgage securities. this will not only allow the population to obtain long-term loans, but also serve to form a stable financial source for the state budget. 4. development of regional strategies: based on the experience of finland, it is advisable to develop separate strategies for providing housing to the population in uzbekistan, taking into account demographic and social factors in the regions. this will allow each region or city to independently formulate a housing policy based on its infrastructure, population needs and economic capabilities. 5. improvement of tax policy and subsidy system: it is important to apply a differentiated approach to allocating subsidies from the state budget, taking into account the principles of social justice. for example, determining the amount of subsidies for low-income families based on the capacity of the house and family composition will increase the expediency of financing. the state budget serves as a decisive factor in providing housing to the population, which is one of the priority areas of social policy. there is a growing need to analyze and implement the financial provision of housing, relying not only on domestic resources, but also on international experience. based on the experiences of singapore, the united states, and finland, in the conditions of uzbekistan: deepening the mortgage system through financial markets; introducing tax incentives for rental housing; harmonizing housing policy by region; measures such as offering long-term mortgage terms for those in need of social protection should become the main direction of state financial policy. these reforms, implemented through the state american journal of business management, economics and banking volume 38 july2025 p a g e | 27 www.americanjournal.org budget, serve as an important tool in protecting the population from socio-economic risks, creating stable living conditions, and developing human capital. providing the population with housing is one of the central directions of social policy, and the state budget plays a decisive role in its financing. based on existing analytical studies, it can be noted that the factors affecting the level of housing ownership of the population are manifested in a wide range in the form of social, economic, territorial and institutional factors. state spending on housing is carried out in two main directions: 1. subsidizing mortgage loans and stimulating housing construction: in accordance with presidential decree no. pf-70, mechanisms for covering part of the down payment and interest payments on mortgage loans from the budget are being widely introduced. 2. subsidized financing of rent for the socially vulnerable: based on proposals developed based on the experiences of the united states and finland, mechanisms for providing state financial support for rented housing and introducing tax incentives are being proposed. the allocation of state budget resources in financing social policy is one of the important strategic directions. in particular, providing housing, which is one of the basic needs of the population, is recognized as an integral part of ensuring social stability and developing human capital. the presented graphic data reflects the dynamics of changes between social expenditures allocated from the state budget of the republic of uzbekistan (on the left axis) and housing expenditures (on the right axis) for 2016–2024. the indicators in the graph show how social policy priorities were formed on an annual basis, and in which years the financial approach to housing policy was strengthened. state budget expenditures on the social sphere and housing provision for the population, quarterly trend 2016-20247, billion sums during the analyzed period, social expenditures and expenditures allocated for housing provision were in fluctuating dynamics. a steady growth is noticeable in the trend of social expenditures: starting from 2018, these expenditures have been increasing every year. in 2022-2024, these expenditures have increased sharply, which indicates increased attention to social policy. housing expenditures, on the other hand, are uneven compared to social expenditures, but are characterized by sharp increases in some years. in particular, in 2019 and 2020, these expenditures housing costs (right column) social spending (left column) 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0 50 0 2000 0 100 0 4000 0 150 0 6000 0 200 0 8000 0 250 0 10000 0 3500 3000 12000 0 4000 14000 0 4500 16000 0 american journal of business management, economics and banking volume 38 july2025 p a g e | 28 www.americanjournal.org reached their maximum level. these years were characterized by the active implementation of housing policy, for example, by the expansion of mortgage programs or social housing construction. however, after 2021, these expenditures seem to have decreased and stabilized. in general, the state continues to pay constant attention to the issue of housing, but the relatively rapid growth of social spending may be due to other priorities in social policy (education, healthcare, pension system). a predictive and systematic approach to financial planning is required to ensure the sustainability of housing costs in the future. although in uzbekistan certain achievements have been made in recent years in the field of providing housing to the population, systemic problems and concerns about financial stability in this area still remain. despite the reforms carried out by the state and the improvement of the legislative framework, the complexity of existing mechanisms and institutional inconsistencies are manifested as a factor reducing the effectiveness of this area. systemic problems in providing housing to the population based on the analysis, the following main systemic difficulties are identified at the republican level: 1. lack of a centralized authorized body due to the lack of an institution that coordinates, controls and manages housing policy and strategic plans in a single center, the activities of various state bodies are fragmented. 2. the need for centralized financing of mortgage programs the establishment of a special purpose fund for conducting mortgage programs from the state budget can serve to regulate interest rates and cover a wider social stratum. 3. the risk of speculation in the real estate market artificially increasing the price of housing built by private contractors and the lack of quality guarantees puts the population at financial risk. 4. the lack of appropriate subsidy mechanisms for the low-income group especially since price differences between regions are not taken into account, the subsidy policy is unfairly distributed. 5. the problem of transparency and delays in construction in recent years, the failure to put new residential complexes into operation on time has increased citizen dissatisfaction. this undermines the financial resources and confidence of the population. the following innovative mechanisms are proposed in response to the above problems: according to research, a model for establishing a state trust fund is proposed to provide housing to the population. through this fund, the following results can be achieved: directing the population's free funds to financial markets; financing new housing estates in cooperation with private contractors; covering a wide range of people by subsidizing loan interest rates; ensuring investment insurance and security based on state guarantees. clearly defining the principle of targeting in the use of budget funds. it is necessary to strengthen the targeted approach to spending public funds, that is, to clearly identify the most vulnerable groups in need of housing and direct subsidies and benefits only to them. this principle prevents inefficient spending of budget resources and ensures social justice. for example, out of 70 thousand mortgage loans planned in uzbekistan in 2025, 30 thousand will be intended specifically for low-income families, and their down payment will be covered from the budget. such targeted support guarantees that real assistance will reach families in need of housing. expanding access to housing for the low-income group by strengthening the powers of local authorities. in order to effectively solve the housing problem at the local level, it is necessary to increase the role american journal of business management, economics and banking volume 38 july2025 p a g e | 29 www.americanjournal.org and powers of local government bodies. local authorities know the low-income families in their area better and it is easier to provide them with targeted assistance; for example, by forming a fund of affordable rental housing or by allocating land and organizing the construction of housing. as a result of granting financial and organizational independence to local authorities, they will be able to direct regional budget funds to housing projects for families in need. according to international experience, the implementation of social housing programs at the local level increases their effectiveness and expands the possibility of providing low-income groups with housing. ensuring sociality and limiting the commercial nature of mortgage financing. the housing mortgage system should be enriched with elements of social protection, since a mortgage based entirely on market principles can be a heavy financial burden for low-income groups. the state can introduce a mechanism to reduce or partially subsidize interest rates on mortgage loans in many countries, governments have a practice of covering part of the interest paid to private banks or providing tax breaks for mortgage interest, which eases the burden on borrowers. use of corporate governance elements in housing fund management. it is necessary to introduce modern corporate governance principles in the management of state-funded housing funds and construction organizations. this means the use of transparency, accountability, independent supervisory boards and business methods to achieve efficiency in the management of housing programs. corporate governance elements strengthen public and investor control over the use of funds, reduce the risk of corruption and ensure optimal allocation of resources. for example, in the australian experience, the national housing agency (housing australia) was established as a special corporate entity, which provides a highly professional approach and transparency in the management of public investments. such an approach serves to ensure long-term sustainable management of the housing fund. develop competition in the housing market by creating an environment of multiple choice. the formation of alternative options for acquiring housing for different segments of the population (renting, leasing, construction through private housing funds, a cooperative housing construction system, etc.) encourages healthy competition in the market. a wide range of options prevents monopolies in the housing market and increases competition in terms of quality and price. for example, if, in addition to direct housing purchase, citizens have the opportunity to live in a low-cost rental or rent-to-own, developers and financial institutions will be forced to improve their offers to attract customers. the presence of various mortgage programs, microloans, public-private partnership projects and other options will increase the number of innovative solutions in the housing market and develop a competitive environment that serves the interests of consumers. reducing the price burden in mortgage programs, taking into account the number of family members. family size (number of children and dependents) directly affects the level of affordability of housing. since families with many children or members spend more of their income on living expenses, housing costs are a heavier burden for them. therefore, a differential approach to mortgage lending and housing subsidy policies that take into account the number of family members is necessary: for example, measures such as reducing the initial down payment percentage for families with many children, extending the loan term and grace period, or allocating additional subsidies for each additional child. international experience shows that this is giving positive results for example, in russia, under the “maternal capital” program, which has been in effect since 2007, families are given a certificate of a certain amount of money when a child is born, which can be used mainly to improve housing american journal of business management, economics and banking volume 38 july2025 p a g e | 30 www.americanjournal.org conditions; as a result, more than 80% of families spend this money on buying a house or paying off a mortgage. such approaches increase the chances of large families to own a home and contribute to overall social stability. increasing social justice in the distribution of subsidies by systematizing the population by gender. taking into account the gender factor in housing policy is an important condition for ensuring social justice. by analyzing the population by gender, it is possible to determine whether there are differences between men and women in the use of housing subsidies. for example, single-woman households or women with disabilities may be excluded from housing programs if such cases are identified, additional quotas or simplified conditions should be allocated to them. modern approaches recommend developing housing strategies in a gender-sensitive manner: in particular, it is emphasized that housing programs should separately consider the needs of women and men, maintain statistical indicators by gender, and monitor the achievement of results. international experts emphasize that a gender-sensitive housing policy reduces the risk of homelessness, especially for single women who are victims of violence or have children. therefore, by monitoring gender discrimination in the distribution of subsidies and making appropriate adjustments, the distribution of resources will be achieved in accordance with fair and equal principles. the above-mentioned measures and directions are aimed at comprehensively improving the housing supply system, and all of them should work effectively in an economically and financially interconnected manner. stability and inclusiveness in the housing market will be ensured through targeted and fair distribution of state budget funds, improved management, and the introduction of modern financial mechanisms (social mortgages, escrow accounts, special funds). international experience shows that the integration of socially oriented approaches and innovative instruments in housing programs is an important factor in improving the living standards of the population, reducing homelessness, and promoting economic growth. therefore, in the conditions of uzbekistan, reforms based on these principles will take housing provision to a new level and serve to strengthen social stability and well-being in society. references 1. decree no. pf-70 “on additional measures to improve the mechanisms for allocating mortgage loans in 2024 and improve the housing conditions of the population” 2. decree no. pf-60 dated january 29, 2022 “on the development strategy of new uzbekistan for 2022 2026” 3. resolution no. pq-4797 dated august 4, 2020 “on additional measures to automate the procedures for providing state social services and assistance to the population” 4. resolution of the cabinet of ministers of the republic of uzbekistan dated march 25, 2020 no. 182 “on approval of the regulation on the procedure for paying subsidies to citizens for the purchase of housing” 5. housing. un-habitat. https://unhabitat.org/topic/housing 6. who housing and health guidelines. geneva: world health organization; 2018. license cc bync-sa 3.0 igo 7. finance.gov.au. 8. sibdom.ru. 9. equalityrightsalliance.org.au 10. tg-uk.com. 11. www.lex.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 110 www.americanjournal.org development of regional tourism resources: current opportunities and prospects shaymanova nigora yusupovna assistant of the department of “tourism and hotel business” yusupovnanigor@gmail.com a b s t r a c t k e y w o r d s regional tourism resources, including natural, cultural, and historical objects, are an important component of the tourism industry. these resources play a significant role in developing the region's economy, increasing employment, and preserving the national heritage. this article analyses the existing potential of regional tourism resources and their future development prospects. tourism resources, cultural tourism, recreational resources. introduction tourism is not only a way to relax and unwind, but also a powerful means of discovering new places, exploring different cultures, and connecting more closely with nature. it broadens one’s horizons, fosters appreciation for historical heritage, and encourages harmonious coexistence with the environment. as such, tourism plays a vital role in the social and economic development of every region and country. the growth of regional tourism largely depends on the tourism resources available in a given area. these resources may include natural landscapes, historical sites, ethnographic richness, cultural events, and the local traditions of hospitality. regional tourism contributes to economic activity, improves infrastructure, creates employment opportunities, and promotes cultural exchange. uzbekistan, with its rich historical legacy, diverse natural scenery, and growing tourism infrastructure, is well positioned to expand its tourism industry. cities like samarkand, bukhara, khiva, and tashkent are home to remarkable cultural and historical monuments. combined with opportunities in ecotourism, wellness tourism, and agrotourism, uzbekistan holds strong potential to become a prominent regional tourism hub. the development of regional tourism is closely linked to the availability and effective use of tourism resources. these resources—such as natural landscapes, historical monuments, cultural heritage, traditional crafts, local cuisine, and community customs—play a crucial role in attracting visitors and shaping their travel experiences. without a strong foundation of such resources, it is difficult to create a compelling tourism offering that appeals to both domestic and international travelers. in addition to physical and cultural assets, human resources—such as skilled hospitality workers, tour guides, and local entrepreneurs—are also essential components of regional tourism development. american journal of business management, economics and banking volume 36 may2025 p a g e | 111 www.americanjournal.org when local communities are actively engaged in tourism, it leads to more authentic experiences for tourists and sustainable economic benefits for the region. furthermore, the preservation, promotion, and innovative presentation of tourism resources can greatly enhance a region’s competitiveness. for example, developing eco-friendly tourism around natural reserves, or creating themed cultural routes based on local history, can provide unique and memorable experiences that encourage longer stays and repeat visits. therefore, investing in the identification, conservation, and smart utilization of tourism resources is a strategic priority for any region aiming to boost its tourism sector and achieve long-term growth. these resources are divided into the following main types: 1. natural tourism resources 2. cultural and historical tourism resources 3. ecotourism and agro-tourism facilities 1. natural tourism resources natural resources are one of the most important and attractive types of tourism. these resources include objects that are not created by humans, but exist in their natural state. natural resources can be grouped as follows: according to origin according to recreational use according to the level of resource continuity according to its ability to regenerate and grow: natural, biological rivers, mountains, forests, springs, and natural beauty spots exhaustible natural resources, inexhaustible natural resources renewable resources, nonrenewable resources by origin, natural resources include mountains, rivers, thermal waters, natural climate, and similar resources that are not created by man. among natural tourist resources, the main place is occupied by recreational resources. natural recreational resources include land, water, forests, and climatic conditions that provide tourism and recreational activities. [1] according to the degree of durability of resources, they are divided into exhaustible and inexhaustible natural resources. exhaustible natural resources are, in turn, divided into renewable and non-renewable types. inexhaustible natural resources include resources such as solar energy and wind. forests are an example of renewable resources. 2. cultural and historical tourism resources cultural and historical resources are understood as artefacts, traditions, and narratives that embody a civilisation's heritage and identity. the effective development and integration of these resources is important to convert their unique advantages into industrial benefits, thereby enhancing their historical significance and practical value. [2] this type of resource includes tangible and intangible values inherited from the past. they provide information about the stages of historical development, culture and art of a country or region. the rich culture of uzbekistan, the numerous architectural monuments, natural objects, ancient archaeological sites testifying to the distant past and the ancient civilizations that ruled this territory, as well as the great historical heritage due to its location in the center of the "great silk road", indicate a high potential for the development of historical and cultural tourism. for example, uzbekistan has about american journal of business management, economics and banking volume 36 may2025 p a g e | 112 www.americanjournal.org 8,000 historical and cultural sites, of which 4 architectural complexes the historical cities of samarkand, bukhara, khiva and shakhrisabz, as well as the ugam-chatkal national park are included in the unesco world heritage list. archaeological sites: these sites allow us to learn about the way of life in ancient times. for example, places such as the ruins of afrosiyob, toprakkala, and kampirtepa are important resources for tourists who love historical sites. architectural structures: buildings such as mosques, madrasas, minarets, and palaces play a major role in tourism with their unique design, decorative arts, and historical significance. examples include the registan complex, poyi kalon, and ark castle. 3. ecotourism and agro-tourism facilities in recent years, new directions in comparison with traditional types of tourism ecotourism and agrotourism have become increasingly popular. these directions are especially suitable for tourists who want to relax in an ecologically clean, peaceful and natural environment. agricultural farms: tourists get acquainted with farming or animal husbandry on these farms, and taste local products. this allows them to better understand the local way of life. ecotourism routes: through specially designed routes, tourists engage in activities such as trekking, nature viewing, and bird watching. such routes serve to preserve the environment without harming it. methodology this research methodology was implemented on the basis of a comprehensive approach using qualitative and quantitative methods in order to conduct a comprehensive and in-depth analysis of tourism resources and assess their development opportunities and prospects. during the research, scientific research works of local and foreign scientists working in the field of tourism were studied and critically analyzed. in addition, existing statistical data, official reports and state strategic programs were studied, and the current state and development trends of the tourism sector were analyzed in depth. this comprehensive method made it possible to assess tourism resources and identify future development directions. literature review regional tourism resources encompass socio-economic, cultural-historical, and natural-recreational elements. these resources are crucial for the effective development of tourism, influencing the location of infrastructure, the distribution of tourist loads, and overall economic activity. [3] regional tourism resources include local cultural assets, man-made attractions, and various tourism models, such as leisure, synthetic, analogy, and mice. these elements are essential for enhancing the cultural value and marketing of tourism products in the region. [4] local natural and cultural resources are key elements that define regional tourism resources. they differentiate destinations through innovative products and services, which, as highlighted in the study on regional demand functions, ensure long-term competitiveness and sustainability in the tourism sector. [5] american journal of business management, economics and banking volume 36 may2025 p a g e | 113 www.americanjournal.org analysis and results regional tourism is deeply rooted in the natural and cultural wealth unique to each area. every resource—whether scenic landscapes, historical monuments, or cultural traditions—is distinct and holds significant value for tourism development. careful preservation, academic research, and effective utilization of these resources are crucial for enhancing the tourism sector, positively influencing the local economy. uzbekistan exemplifies substantial potential in regional tourism development due to its strategic location along the ancient silk road and its rich historical and cultural heritage. cities such as samarkand, bukhara, khiva, and tashkent showcase architectural landmarks like registan square, ark fortress, and ichan kala, which annually attract millions of tourists. for instance, in 2024 alone, approximately 10.2 million international tourists visited uzbekistan, bringing a total revenue of $3.5 billion, marking an increase of 50% compared to 2023. the country also prioritizes local cultural events to boost regional tourism. festivals like the "sharq taronalari" international music festival in samarkand, the silk and spice festival in bukhara, and the handicrafts festival in kokand not only highlight uzbekistan's rich traditions and crafts but also significantly increase local and international tourism. the "sharq taronalari" festival alone attracts artists from over 80 countries, boosting the local economy significantly during the event. uzbekistan has made considerable investments in infrastructure to support regional tourism. recent developments include the modernization and expansion of transportation systems, notably high-speed railways connecting major tourist cities such as tashkent, samarkand, and bukhara. the construction of new airports and modernization of existing ones, including samarkand international airport, which served 1.38 million passengers in 2024, further enhance international connectivity. digital technology is increasingly integral to enhancing the tourist experience. platforms like mybooking.uz and advantour simplify hotel bookings, ticket purchases, and access to guided tours, making travel more convenient. the forthcoming launch of the national tourism platform in 2025 will further integrate digital services, facilitating seamless travel experiences across uzbekistan. statistical data from recent years underscores the economic importance of regional tourism, demonstrating its potential as a sustainable growth sector. the tourism and hospitality sectors generated over 51,000 new jobs in 2024, highlighting its significant role in local economic development. future initiatives such as the "uzbekistan tourism strategy 2040" aim to increase international arrivals to 11 million tourists annually by 2025 and achieve tourism revenues of approximately $3.8 billion. continued strategic investments in infrastructure, digital integration, and cultural preservation promise sustained and significant growth in uzbekistan's regional tourism sector. the regional development of tourism in uzbekistan is crucial not only for economic advancement but also for safeguarding the nation's rich cultural heritage and enhancing the quality of life for local communities. uzbekistan presents numerous opportunities to foster distinctive tourism identities for each region, achievable through sustainable, eco-friendly tourism practices, the promotion of local entrepreneurship, and the development of diverse and innovative travel experiences. despite the considerable natural beauty and cultural richness, many areas in uzbekistan remain underexplored. notable among these are the picturesque mountainous regions of surkhandarya, renowned for their archaeological sites such as the ancient buddhist complexes of fayaztepa and karatepa; the historical town of muynak in karakalpakstan, symbolizing ecological resilience and revival near the aral sea; the expansive kyzylkum desert, offering vast opportunities for adventure and ecoamerican journal of business management, economics and banking volume 36 may2025 p a g e | 114 www.americanjournal.org tourism; and the culturally vibrant historic villages of the fergana valley, known for their unique traditions in ceramics, silk weaving, and handicrafts. developing new tourist routes and improving regional connectivity will help disperse visitor traffic beyond traditionally popular destinations like samarkand, bukhara, and khiva, thereby spreading economic benefits to less-visited locales. thematic tourism offers especially promising opportunities. pilgrimage tours focusing on historical and religious sites such as the mausoleum of imam al-bukhari and the hazrat daud cave can attract religious and spiritual travelers. ethnographic journeys can highlight local traditions, crafts, and festivals, providing immersive cultural experiences. culinary tourism, emphasizing uzbekistan's diverse regional cuisines, from tashkent's sophisticated gastronomy to khorezm's distinctive dishes, could attract gastronomes from around the world. the government of uzbekistan has increasingly prioritized tourism as part of its broader economic development strategy. numerous strategies and promotional campaigns have been launched by the state committee for tourism and related institutions to enhance both international visibility and domestic tourism. one significant initiative aimed at encouraging internal travel is the "family travel days" campaign, which designates one weekend each month to inspire families to explore local destinations, fostering a deeper appreciation of the country's diverse cultural and natural heritage. to support these efforts, extensive investments in infrastructure improvements and the training of local tourism professionals are underway, including the establishment of hospitality training centers and educational programs. encouraging community-based tourism initiatives further ensures local engagement and economic empowerment. with sustained efforts in these directions, uzbekistan's regional tourism sector is poised for long-term growth, contributing significantly to economic resilience, cultural preservation, and the enhancement of local communities' quality of life. summary uzbekistan possesses all the necessary conditions for significant tourism development, including a rich historical heritage, well-developed modern infrastructure, robust state support, and an increasingly open market conducive to investment. effectively leveraging and strategically managing these strengths positions uzbekistan to become one of the most prominent tourism centers in the region. advancing regional tourism resources is essential for ensuring sustainable growth within the industry. state-driven programs, proactive involvement from local entrepreneurs, and continued infrastructure enhancements can significantly bolster regional tourism. moving forward, greater emphasis should be placed on ecological and cultural tourism, promoting practices that protect the environment and celebrate local traditions. ecotourism initiatives can focus on uzbekistan's unique natural landscapes, such as the mountainous areas of surkhandarya and the expansive kyzylkum desert, fostering responsible travel and conservation efforts. cultural tourism, meanwhile, can leverage uzbekistan's extensive historical sites and diverse cultural practices, enriching tourist experiences through festivals, traditional crafts, culinary tours, and ethnographic journeys. the combined impact of state programs, entrepreneurial engagement, and infrastructure improvements will ensure that tourism contributes meaningfully to local economies, enhances community well-being, and preserves uzbekistan’s rich ecological and cultural assets for future generations. american journal of business management, economics and banking volume 36 may2025 p a g e | 115 www.americanjournal.org references 1. grdzelishvili, n., & kvaratskhelia, l. l. (2023). perspectives of rational use of recreational resources in georgia. https://doi.org/10.52340/bal/2023.01.02 2. yuan, j. (2022). the integration of historical and cultural resources in china. scientific and social research, 4(2), 149–153. https://doi.org/10.26689/ssr.v4i2.3629 3. polyakova, i. (2023). the role of socio-economic tourist resources in the development of regional tourism (on the example of the lipetsk region). 2(2), 57–63. https://doi.org/10.24888/2949-2793-20232-57-63 4. xu, m. (2012). an exploration of the optimization and integration of cultural tourism resources—exemplified by hefei economic zone. journal of anhui agricultural university. 5. maldonado-erazo, c. p., del río-rama, m., álvarez-garcía, j., & flores-mancheno, a. c. (2022). use of natural and cultural resources by tourism as a strategy for regional development: bibliometric analysis. land, 11(8), 1162. https://doi.org/10.3390/land11081162 6. amonboyev m., shaymanova n. y.(2024) recreational potential of uzbekistan and prospects for the development of wellness tourism in the country. 2024-yil, fevral. № 2-son. 7. shaymanova nigora yusupovna. recreational tourism in the countries of central asia. green economy and development. electronic publication. 714 pages, october 30, 2023. https://doi.org/10.52340/bal/2023.01.02 https://doi.org/10.26689/ssr.v4i2.3629 https://doi.org/10.24888/2949-2793-2023-2-57-63 https://doi.org/10.24888/2949-2793-2023-2-57-63 https://doi.org/10.3390/land11081162 american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 116 www.americanjournal.org the role of tourism assistants in improving tourism statistics jumayev akbar mahmudovich , phd, tashkent state economy university of economics "statistics" department associate professor, tashkent, uzbekistan e-mail: akbar.jumayev@tsue.uz orcid: 0000-0001-8935-032x a b s t r a c t k e y w o r d s tourism has become one of the fastest growing competitive sectors in the world economy. the number of tourists at the international level has reached 1.8 billion. people. tourism revenues have reached 1.7 trillion us dollars, accounting for 7% of world exports and 29% of services exports. tourism revenues in world exports rank third after the chemical industry and fuel and energy exports. tourism occupies a key place in the leading sectors of the economies of countries around the world. as a result, the innovative development of tourism in the sectors of the economies of most countries around the world remains one of the most important tasks today. in different countries of the world, extensive scientific and practical research is being conducted to increase tourism potential, offer new services, create new tourism brands, radically increase the competitiveness of the tourism industry, conduct statistical research in the tourism industry and statistically assess the innovative development of tourism. the issues of statistical assessment of tourism have not been sufficiently addressed in the research. this makes it urgent to further expand the geography of tourism in research, increase its share in the economy of countries, in particular in the gross domestic product, and turn tourism into one of the profitable sectors. in uzbekistan , great attention is paid to the development of tourism, assessing its place in the economy, and maintaining tourism statistics on the basis of international organizations and standards. “it is necessary to improve the maintenance of statistics in the tourism sector, including on the basis of international experience and standards, including the world tourism organization,” it was emphasized. this includes tasks such as increasing the flow of tourists and expanding the export of tourism services, increasing the employment rate of the population based on the creation of new jobs in the industry, and most importantly, organizing the maintenance of tourism statistics in accordance with international standards and creating a methodology for statistical assessment of tourism. in this regard, today there is a need to conduct scientific research in this area. tourism receipts, tourism consumption, tourism auxiliary account, tourism statistics, forecasting methods american journal of business management, economics and banking volume 36 may2025 p a g e | 117 www.americanjournal.org introduction 20th century second half starting population material well-being growth and transport with the development of ( especially air and rail ) internal and external tourism develop started . to the calculations in the 1950s , 25 million in the world . international tourist there is was , tourism industry 2.1 billion us dollars dollar income brought if , in the 1960s and 1970s this indicators relevant 70 million and 130 million people , respectively , income and reached 12.2 and 40.3 billion [1] tourism the population spiritual and social to grow impact to do with one in line , good income source to the fact that known to be with many countries him/her great attention to development gave and as a result in the countries of the economy new industry – tourism network appearance tourism term english "tour" in turkish meaning means and to this day to him/her given definitions different districts. the first one scientific description sweden in 1941 scientists w. hunziker and k. kraft [2] by given. their in the opinion of people permanent to live from the place other to places income to receive and constantly to live from the goals outside other trips done increase called tourism. however, this in the definition time factor into account not received for to him/her relatively many critical of relationships to the formation reason it has been. despite this , in general when receiving swedish of scientists tourism in the study contribution very high. for example, they tourism to the field from the first become scientific approached and fundamental scientific research for basis created this situation many ( e.cohen , g.pearce , r.sharpley , rwbutler etc. ) recognizes . tourism in the republic research take visited and are being visited ( istukhliev , fqkomilova , ssro'ziev , mjtemirkhonova , sh.r.fayzieva , bssafarov , nnsafarova , ye.gol y shova , a.saidov , t.tashmuradov etc. ) uzbek researchers to tourism gave unanimity in definitions no . af saidov according to [3] : « tourism people need satisfy for different kind goods and services of the types usable to oneself typical economic " is a field ." scientists feedback with one in line to tourism official organizations by definitions are also given . the un statistical committee in 1953 at the conference " international visit " commander ", from 1963 and " visit " " orderer ", " tourist ", " excursor " and others concepts international to practice was entered . according to it : visit the one who orders is his/her own usual from the environment any designated main to visit a place ordering in the country or in place to work location from the purpose except , every how the goal looking forward to , one from the year less was within the period the trip done increasing is a tourist . tourist this on a trip collective and individual in order placement in the facilities at least one yesterday overnight remaining trip is a traveler . tourist or one daily visit ordering his/her own usual stay from the place other any one to the place short during the day and at night without fail trip doer is a person . tourists to the point in receiving un official statistic organs and local statistic organs role is unparalleled . international at the level statistic into account to take work by the un managed the btt was established under him ( 1976 ) . this organization four it is composed of the following departments : in the department of statistics statistic problems learn from them solution finds and all to countries recommendations gives . with this one btt is another in the line official organizations and countries with integral linked . home managed by the un done is increased , that is, it is international to organizations recommendations gives and from them through countries and wto reports acceptance does . american journal of business management, economics and banking volume 36 may2025 p a g e | 118 www.americanjournal.org material and method the system of statistical indicators should be able to fully and comprehensively characterize the development of the studied sector at the provincial, regional and national levels, reveal its internal characteristics, identify existing statistical trends, and most importantly, assess the impact of this sector on a positive change in the quality of life of the country's population[4]. according to some scholars (amhjalager[5]), before determining the above indicators, it is proposed to determine indicators that represent the innovative development of tourism. this is because, according to the above researchers, innovative development first turns tourism into a sustainable industry and then into a competitive industry. in our opinion, sample questionnaires and reports need to be revised and improved based on international standards, because it is the questionnaires and reports that increase the reliability and representativeness of the collected data. tourism auxiliary accounts (taas) are one of the most important and main sources in determining indicators representing tourism development. in some literature, the tourism auxiliary accounts are referred to as satellite accounts. satellite means satellite in english, and in economics it is used in the sense of auxiliary accounts. the main reason for analyzing the tourism sector through auxiliary accounts is that tourism is not located in a specific sector. the tourism auxiliary account collects and analyzes data from various sectors through tables. the tourism auxiliary account (taa) is one of the important accounts of the system of national accounts, and its full implementation in the national statistical practice of uzbekistan and the formation of taa indicators in accordance with international standards will create favorable economic and organizational legal conditions for the rapid development of tourism, which is considered a strategic sector of our economy, and will allow for more complete and effective use of tourism potential. results this document provides a detailed definition of the above concepts and the calculation methodology. with the development of tourism in many countries, it began to seem that the recommendations adopted in 1993 were outdated by the beginning of the 21st century and did not fully meet the requirements of the time. in this regard, in 2008, an international standard for tourism statistics was created in cooperation with the un, ilo, eurostat and others. a comprehensive analysis of both documents shows that the standard adopted in 2008 is significantly improved and has positive differences compared to the 1993 document. in our opinion, the 2008 international tourism statistical recommendations have the following differences compared to the 1993 document american journal of business management, economics and banking volume 36 may2025 p a g e | 119 www.americanjournal.org figure 1. inbound tourism consumption in the republic of uzbekistan, million soums 2019–2023 during to uzbekistan entrance according to tourism consumption noticeable at the level changing went . in 2019, this indicator 11,639.3 billion formed a sum if , pandemic sharply in 2020 under the influence decreased to only 2,489.9 billion amounted to soums . in 2021, this indicator a little recovered , 4,492.9 billion in soums reached . in 2022 and 2023 and tourism in the field stable growth observed , suitable 17,776.7 billion and 25,169.2 billion respectively amounted to soums . this numbers in uzbekistan tourism of the field recovery and development is also progressing internationally tourists of the flow consistent increasing going shows . figure 2. employment in the tourism sector, people employment indicators in the tourism sector in uzbekistan remained relatively stable during 2019– 2023, confirming the economic importance of this sector. while in 2019 the number of people employed in tourism was 231.4 thousand people, during the pandemic this figure decreased to 190.8 0 5000000 10000000 15000000 20000000 25000000 30000000 2019 2020 2021 2022 2023 o‘zbekiston respublikasi 0 50000 100000 150000 200000 250000 2019 2020 2021 2022 2023 o‘zbekiston respublikasi american journal of business management, economics and banking volume 36 may2025 p a g e | 120 www.americanjournal.org thousand people in 2020. nevertheless, the following in years slowly recovery observed , reaching 208.1 thousand in 2021, 214.6 thousand in 2022 and 215.7 thousand in 2023 this dynamic in uzbekistan tourism sector economic from crises after own potential recovering and employment positive contribution adding shows. the document adopted in 2000 was significantly amended in 2008. for example, while the 2000 document calculated tourist expenses, the 2008 document also determined the volume of tourist consumption. it is known that tourist consumption has a broader meaning than tourist expenses. in other words, tourist expenses are part of tourist consumption. secondly, in the 2000 document, the calculation of tourist products was to be carried out using the same methodology for all countries. in 2008, each country was given the opportunity to use its own methodology. thirdly, the new document introduced the term conference service. fourthly, the number of positions in tourism, along with employees in tourist enterprises, also included employees who are seasonally employed in tourism, and finally, the methodology for calculating capital in the tourism sector was changed, that is, capital in the tourism sector means not only the capital of tourist organizations, but also the capital of tourism enterprises. conclusion tourism economic activity important to the driver became – in 2020 pandemic because of to the surface arrived sharp from decline then , in 2022 and 2023 entrance tourism according to consumption sharp growing to 25 trillion soums enough sector from recovery outside , fast at a pace it also shows that it is developing . employment indicators stability tourism social importance confirms – even crisis in tourism even during employment sharp without reduction , until 2023 arrived 215.7 thousand people enough this of the industry stable work their places create potential manifestation will reach . state policy positive impact is being felt – tourism consumption and employment recovery trend last in years done increased reforms , infrastructure development and international propaganda campaigns the effect reflection sector priority direction as of designation correctness confirms. references 1. worldwide tourism organization information / www.wto.org 2. w. hunziker and k. krapf // grundriss der allgemeine fremdenverkehrslehre . //-zurich: polygraphischer, 1942. pp. 45 3. afsaidov // in uzbekistan tourism // t.: prospects and problems , 1992.12 pages . 4. xa shodiev , i. habibullaev //statistics // textbook – t.: economics finance, 2019.25 pages 5. am hjalager, a review of innovation research in tourism. tourism management, 31(1), 2010.pp 22. http://www.wto.org/ american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 36 www.americanjournal.org issues of harmonizing national standards with international standards in preparing financial statements g‘аniyеv zаfаr usаnоvich tsue, professor of the department of "financial accounting and reporting", phd. ganiyevzafar868@gmail.com. +998 99 940 22 88 a b s t r a c t k e y w o r d s this scientific article discusses the need to prepare and adapt the balance sheet, compiled based on national standards, to international accounting standards and to provide it to external users within the established timeframe. transformation, parallel accounting, international accounting standards, financial reporting, balance sheet, assets, liabilities, equity. introduction relevant reforms are being carried out in our republic to transition accounting to international financial reporting standards (here in after ifrs). currently, our goal is to prepare financial statements based on international standards in enterprises based on corporate governance. this can be achieved by preparing financial statements based on international standards or by transforming financial statements prepared based on national accounting standards to international standards. on february 24, 2020, the president of the republic of uzbekistan signed resolution no. pq-4611 “on additional measures for the transition to international financial reporting standards”, which provides for a fundamental revision of the process of introducing ifrs. according to this resolution of the president, from january 1, 2021, joint-stock companies, commercial banks, insurance organizations and legal entities included in the category of large taxpayers will switch to accounting based on international financial reporting standards.1. the regulation "on the deadlines for the submission of financial statements prepared on the basis of international financial reporting standards and their composition" was adopted in appendix 1 to the order of the minister of economy and finance of the republic of uzbekistan no. 181 dated october 8, 2024. according to this regulation, the content and structure of financial statements, the forms of financial statements prepared in accordance with the iasb and ifrs are clearly defined. in this 1o‘zbekiston respublikasi prezidenti 2020 yil 24 fevraldagi «moliyaviy hisobotning xalqaro standartlariga o‘tish bo‘yicha qo‘shimcha chora-tadbirlar to‘g‘risida»gi pq-4611-son qarori american journal of business management, economics and banking volume 36 may2025 p a g e | 37 www.americanjournal.org regulation, the forms of annual financial statements prepared in accordance with the iasb and ifrs include the following, namely: the forms of annual financial statements prepared in accordance with the iasb include the following: balance sheet in accordance with appendix 1 to these regulations; report on financial results in accordance with appendix 2 to these regulations; report on equity in accordance with appendix 3 to these regulations; report on cash flows in accordance with appendix 4 to these regulations; notes, calculations and explanations (notes to the financial statements). the annual financial statements prepared in accordance with ifrs include the following: a statement of financial position in accordance with appendix 5 to these regulations; a statement of profit or loss and other comprehensive income in accordance with appendix 6 to these regulations; a statement of changes in equity in accordance with appendix 7 to these regulations; statement of cash flows (indirect method) in accordance with appendix 8 to these regulations; notes containing significant accounting policies and other explanatory information (notes to the financial statements)2. accounting entities are required to submit annual financial statements prepared in accordance with ifrs no later than may 1 of the following year. ifrs requires the preparation and presentation of financial statements in accordance with the requirements for their preparation. this, in turn, allows the enterprise to attract external investors. review of related literature a number of scientific works and studies on the topic have been conducted on the preparation and presentation of financial statements based on ifrs. in particular, foreign economists m.r. matthews, p. ainsworth, k.d. larson, r. libby, r.h. hermanson, r. anthony, b. needles, f. wood and other scientists3 have examined the theoretical and conceptual foundations of financial reporting and methodological issues of recognizing, measuring and reflecting assets, liabilities and equity in financial statements; scientists such as v.p. astakhov, v. kachalin, m.i. kuter, v.f. paliy, ya.v. sokolov, v.i. tkach, v.g. getman, t.yu. druzhilovskaya4 have studied the issues of applying ifrs in their countries in their works. in recent years, research on financial reporting issues has been carried out in our republic, and scientific articles, monographs and textbooks have been published. many scientists in our country today justify the need to transition to international financial reporting standards, outline the ways to transition to it, 2 o‘zbеkistоn rеspublikаsi iqtisоdiyot vа mоliya vаzirining 2024 yil 8 оktyabrdаgi 181-sоn buyrug‘igа 1-ilоvа “mоliyaviy hisоbоtlаrni tаqdim etish muddаtlаri hаmdа ulаrning tаrkibi vа mаzmuni to‘g‘risidаgi” nizоm 3 ainsworth, penne. introduction to accounting: an integrated approach /penne ainsworth, dan deines, r. david plumlee, cathy xanthaky larson. irwin, printed in usa, 2005. 425 r.; 4 и.кутер. теория и принципы бухгалтерского учета: учеб. пособие.–м.: финансы и статистика, экспертное бюро, 2000.–544 s american journal of business management, economics and banking volume 36 may2025 p a g e | 38 www.americanjournal.org and propose teaching it as a separate subject course, including j.kurbanbayev, s.djumanov5, k.b.urazov6, s.n.tashnazarov7. the works of the above-mentioned scientists have studied methodological issues of recognition, valuation and reflection in financial statements of long-term assets, tangible assets, liabilities, income and expenses. among the scientists of our republic, z.n.kurbanov and researcher f.a.akramov8, in their article, m.marpatov9 covered the issues of harmonizing the financial statement with international standards. research methodology the article was written and analyzed using analysis and synthesis, induction and deduction, a systematic approach, accounting, statistics, economic analysis, and economic-mathematical methods. analysis and results: during the independent rise and development of uzbekistan, we can witness the great achievements made in recent years. also, a number of exemplary works are being carried out to develop accounting and accelerate its entry into the world market. in particular, the role of financial reporting in increasing the efficiency of the activities of business entities, enterprises and organizations, and in general in the development of the economy of our republic, is of great importance. in this regard, the adoption of the resolution of our president on february 24, 2020 “on additional measures for the transition to international financial reporting standards” and the approval of the “roadmap” consisting of 18 points in accordance with it indicate that there will be serious changes in the direction of accounting in our republic. therefore, as we strive to enter the world market, create a favorable investment climate in our country, attract foreign investment to our economy, and establish free economic zones, our activities must also comply with international standards. in this regard, accelerating the transition to international standards of financial accounting will provide foreign investors with the necessary information environment and expand their opportunities for access to international markets. in this regard, it is necessary to train accounting and auditing specialists in accordance with international standards and improve the methodology for preparing financial statements based on ifrs. this can be achieved by transforming financial statements based on ifrs. international financial reporting standards are a set of documents for preparing financial statements, a regulation that regulates the structure of financial statements, and are used by external users to make economic decisions regarding an organization. that is, to give a simple example, it will be possible to provide foreign investors with the necessary information to analyze the future growth or decline in the 5 j.qurbanbaev, s.djumanov. buxgalteriya hisobi tizimini moliyaviy hisobotning xalqaro standartlariga o‘tkazish yo‘llari.// moliya. 2016 y. №1, 99-104-b.; 6 k.b.urazov. moliyaviy hisobot: milliy va xalqaro standartlar muvofiqligi yo‘lida. // bozor, pul va kredit j. –2013. –№4. –57-61-b. 7 s.n.tashnazarov. iqtisodiyotni modernizatsiyalash sharoitida moliyaviy hisobot: muammo va yechimlar. monografiya. t.: “navro‘z” nashriyoti, 2016 y. 31-47-b. 8 z.n.qurbanov, f.a.akramov. moliyaviy hisobning xalqaro standartlariga o‘tishning dolzarb masalalari.// biznesekspert, № 4,2015 9 m.marpatov. buxgalteriya balansi – moliyaviy holat to‘g‘risidagi hisobot. //bozor, pul va kredit j. -2016.-№11.-b. 2024. american journal of business management, economics and banking volume 36 may2025 p a g e | 39 www.americanjournal.org value of shares, securities and other types of tangible assets that can attract investment in organizations (companies, corporations, joint-stock companies) operating in our country. the advantage for us is that it creates an opportunity for large enterprises in our country to participate in international financial markets. for example, the purchase of shares and bonds of large enterprises in our republic by foreign citizens or legal entities, investment in these enterprises, ultimately leads to an increase in revenue to the state budget as a result of the development of the enterprise. first, let's dwell on the dictionary meaning of the word transformation. transformation (lat. transformatio change, reorganization) means 1) reorganization of the structure, form and methods, change of the targeted direction of activity; 2) one of the methods of transformation, reorganization of international law norms into domestic state law norms.10 so, in our opinion, transformation in accounting is the transformation of the rules, principles, methods and techniques of the accounting system in accordance with the legislation in force in our country, in accordance with the rules of another country or international rules, that is, the discovery of a new meaning. there is no specific ifrs that defines the rules of transformation. however, the rules of the ifrs no. 1 “first-time adoption of ifrs” standard are required to be followed. when defining the transformation of financial statements, we believe that it is necessary to emphasize the date on which it is transferred, its main content is aimed at transferring the report prepared according to national standards to the financial statements prepared according to international standards, and that the transformation process is a process of conversion and reorganization into a new system that forms information that meets international requirements based on regrouping, rerecognition, revaluation, and adjustments in accordance with ifrs. based on the results of research on financial statements, we give the following definition of financial statement transformation: financial reporting transformation is the process of regrouping the items of reporting components prepared on the basis of national accounting standards as of the reporting date in accordance with the rules of international financial reporting standards, converting and reorganizing their items into a new system of information in ifrs reports based on re-recognition, revaluation, adjustments and redisclosures. the application of international financial reporting standards (ifrs) is not a mandatory document, it is a recommendation. it does not specify the forms of financial statements that enterprises must present, as in national standards. ifrs determine the main components of financial statements and the minimum information content reflected in them. the application of ifrs is a matter of absolute competence of the company. transition to ifrs or preparation of financial statements based on ifrs prepared on the basis of ias creates the following opportunities: • increases the transparency of the company's performance; • information users have the opportunity to analyze financial indicators within one company by period and across several companies by comparing relevant indicators; • creditors, shareholders, lending organizations have increased confidence in the company and invest in the company's activities with high confidence, and the company's ability to obtain loans expands; • attraction of foreign investments and cooperation with foreign investors increases; 10 dic.academic.ru/dic.nsf/dic_economic_law/16427/transformatsiya american journal of business management, economics and banking volume 36 may2025 p a g e | 40 www.americanjournal.org • opportunities arise for entering world markets, including raw materials, currency, labor exchanges, and the international capital market; • company managers have the opportunity to receive reliable, objective, consistent and timely systematized financial information for making management decisions; • necessary information is provided for budgeting, planning and assessing the company's strategic development; • improvement of company management mechanisms, increasing the company's competitiveness, improving product quality and increasing export potential are achieved; • elements of corruption, abuse, concealment of tax objects, plunder, localism, unemployment, bankruptcy will be eliminated in companies; • the system of labor incentives will be radically improved, material benefits will increase; • a strong control system will be established. the moral environment will be stabilized. the qualities of loyalty to work, company and homeland will be combined in employees. • employees will have the opportunity to work on themselves and regularly improve their skills. this will increase the interest and motivation of employees to professionalism. it is not possible to switch to ifrss at any time, without preparation, directly. even if financial statements are transformed according to ifrss without preparation, they will not give the expected result. therefore, when applying ifrss for the first time or before transforming financial statements prepared based on national standards, it is necessary to take into account the environment, conditions and certain preparatory work. we can include the following factors: • the country's financial, monetary, tax, and labor legislation should be in line with world standards. it is necessary to achieve free convertibility of the national currency; • there should be no high inflation in the country's economy; • we should ensure that the system of national accounting standards of the republic of uzbekistan is as consistent as possible with ifrs. if the difference is large, the transformation process will be difficult, and even if the transformation is carried out, it will not give the expected result; • the only regulatory legal act for accounting and the preparation and presentation of financial statements should be the law "on accounting" and accounting standards. we should also gradually transform regulations, instructions, and rules into standards; • we should not envisage the existence of separate accounting standards for economic entities, the budget system, banking systems and public funds (regardless of whether they are profit-making or not), but rather create a single system of standards, the rules of which should be applied to all types of companies and organizations in the same content; • it is necessary to create opportunities for the transition to the procedure for freely determining the currency of presentation of financial statements in accordance with international standards; • it is necessary to establish an institute of professional accountants in the country, to improve the professional qualifications of certified accountants and auditors within its competence, to expand the widespread introduction of acca, sar and cipa certificates. • it is necessary to improve the qualifications of accountants abroad, to study foreign languages, to form skills in working with international accounting programs among practicing accountants; • it is necessary to bring the corporate governance system in companies and joint-stock companies into line with the requirements of international standards; • improve the system of financial incentives for accountants, ensure their compliance with ethical rules; american journal of business management, economics and banking volume 36 may2025 p a g e | 41 www.americanjournal.org • improve the accounting policy in companies, ensure that it is drawn up in full compliance with the principles of financial reporting and has a real accounting project, as well as develop a working chart of accounts in accordance with the requirements of international standards in the company; • ensure that accounting and financial reporting in the company are maintained on the basis of special programs, and carry out a number of other works. joint-stock companies and other enterprises with foreign investment operating in the republic of uzbekistan prepare financial statements in accordance with the law "on accounting" and ifrs. in order to have the above opportunities, the company is required to prepare and present financial statements based on ifrs. well, there are two recognized ways to prepare financial statements based on ifrs, which open up such great opportunities and ensure the transparency of the company: the first way is to transform financial statements prepared based on ifrs into ifrs (figure 1). 1figure 1. stages of financial reporting transformation 11. the second way is to maintain a parallel accounting system in accordance with ifrs alongside the national accounting system (figure 2). 11 created by the author. financial report on nas preparations for the implementation of the ifrs transformation, ifrs accounting policies identification of differences and additional accounting items under ifrs and nas and professional oversight reclassification, revaluation, adjusting entries, transformation model, transformation table, initial versions of ifrs reports financial reporting and its presentation according to ifrs financial reporting american journal of business management, economics and banking volume 36 may2025 p a g e | 42 www.americanjournal.org figure 2 parallel accounting system 12 both paths have one requirement, namely, in-depth knowledge of nas and ifrs, and practical competence in their application. the first path is the most widely used, low-cost and relatively low-complexity. it should be noted that there are no ifrss that define the procedures and rules for the transformation of financial statements. therefore, each enterprise must independently develop the basis for transformation in its accounting policy. for this purpose, it is advisable to develop general approaches to transformation and summarize the accumulated experience. conclusion and recommendations based on the study of literature, it can be concluded that the process of transformation can be divided into several stages. each company approaches this according to its capabilities and level of professionalism. in our opinion, any work to be done can be conditionally divided into three stages, for example, the first stage is preparation for the implementation of this work, then its implementation in the second stage, and finally, in the third stage, it is advisable to divide it into stages of achieving the 12 created by the author. recognition, measurement, identification, evaluation and recording under the nas recognition, measurement, identification, evaluation and accounting under ifrs accounting records according to nas, data formatting in accounts, working balances business operations other transactions measured in money ifrs accounting records, summarization of data in accounts, trail balance, working tables financial reporting and its presentation according to nas financial reporting and its presentation under ifrs preparing for the new reporting period financial reporting and its presentation under ifrs american journal of business management, economics and banking volume 36 may2025 p a g e | 43 www.americanjournal.org result and delivering it to external users, that is, investors, issuing organizations and other creditors. based on this point of view, it is advisable to conditionally divide the transformation process into stages of preparation, its implementation, and achieving the result and presenting it: 1. stage of implementation of preparatory work. at this stage, design, planning and organizational work are carried out. the quality of the work performed at this stage largely ensures the quality of the subsequent stages and the compliance of the transformation results with the requirements of ifrs. 2. when forming the statement of financial position, the company must make the following adjustments in accordance with the standard ifrs no. 1 “first-time adoption of ifrs”: the stage of implementing the transformation process procedure, in which, after all preparatory work, differences are identified, corrective accounting entries are made, and working transformation tables are made. 3. at the final, final stage, after the adjustments are made, financial statements are prepared and presented in accordance with ifrs. based on the above, we propose to do the following when transforming financial statements prepared based on national standards to international standards: first, it is necessary to prepare analytical accounting data, including the components of financial statements prepared in accordance with national standards, as well as extensions of the balance sheet, profit and loss and other reporting items, and, if necessary, primary documents. secondly, it is necessary to reclassify and reassess assets, liabilities and equity elements. in the profit and loss statement, each relevant item should also be reclassified and assessed in accordance with international standards. similarly, it is necessary to develop measures to bring other reporting items one by one into line with the requirements of international standards. third, it is necessary to make appropriate adjustments and develop a schedule of additional postings to bring them up to the level of ifrs. fourth, after the appropriate adjustments are made using accounting postings, prepare a report that complies with the requirements of ifrs. fifth, the correct use of terminology plays an important role in the transition to ifrs. the terms, names of indicators, and their abbreviations in reports compiled based on national standards should be converted to terms that are consistent with international standards. if an indicator's value based on regrouping and assessment is in accordance with international standards, but its name is not consistent, it will be difficult to read and lead to confusion. references 1. o‘zbekiston respublikasi prezidenti 2020 yil 24 fevraldagi «moliyaviy hisobotning xalqaro standartlariga o‘tish bo‘yicha qo‘shimcha chora-tadbirlar to‘g‘risida»gi pq-4611-son qarori. 2. ainsworth, penne. introduction to accounting: an integrated approach /penne ainsworth, dan deines, r. david plumlee, cathy xanthaky larson. irwin, printed in usa, 2005. 425 r. 3. и.кутер. теория и принципы бухгалтерского учета: учеб. пособие.–м.: финансы и статистика, экспертное бюро, 2000.–544 s. 4. j.qurbanbaev, s.djumanov. buxgalteriya hisobi tizimini moliyaviy hisobotning xalqaro standartlariga o‘tkazish yo‘llari.// moliya. 2016 y. №1, 99-104-b. 5. urazov k.b. moliyaviy hisobot: milliy va xalqaro standartlar muvofiqligi yo‘lida. // bozor, pul va kredit. –2013. –№4. –57-61-b. american journal of business management, economics and banking volume 36 may2025 p a g e | 44 www.americanjournal.org 6. s.n.tashnazarov. iqtisodiyotni modernizatsiyalash sharoitida moliyaviy hisobot: muammo va yechimlar. monografiya. t.: “navro‘z” nashriyoti, 2016 y. 31-47-b. 7. z.n.qurbanov, f.a.akramov. moliyaviy hisobning xalqaro standartlariga o‘tishning dolzarb masalalari.//biznes-ekspert,№ 4,2015. 8. m.marpatov. buxgalteriya balansi – moliyaviy holat to‘g‘risidagi hisobot. //bozor, pul va kredit j. -2016.-№11.-b. 20-24. 9. www.ifrsfond.uz american journal of business management, economics and banking issn (e): 2832-8078 volume 36, may 2025 p a g e | 96 www.americanjournal.org analysis of the economic efficiency and social impact of ecological marketing strategies in the field of cleaning products baqoyeva dilfuza maqsud qizi 2nd-year phd student at the international nordic university e-mail: dilfuz.uz@bk.ru a b s t r a c t k e y w o r d s this study explores the economic effectiveness and social impact of ecological marketing strategies in the hygiene products sector. the analysis reveals that green approaches help reduce costs, enhance consumer trust, and strengthen brand loyalty. eco-labeling, sustainable packaging, innovation, and transparent communication emerged as the most effective strategies. the findings confirm that ecological marketing can serve as a practical and impactful management tool. ecological marketing, hygiene products, economic effectiveness, social impact, green strategy, brand loyalty introduction in the context of global economic and environmental changes, sustainability, social responsibility, and ecological safety are becoming increasingly important factors in the operations of enterprises. in particular, the cleaning products industry is one of the most directly affected sectors by these changes, as its products have a direct impact on public health, the environment, and consumer culture. therefore, such enterprises are now required not only to pursue economic gain but also to develop strategies that meet ecological requirements and social expectations. across the world, ecological marketing—that is, positioning and promoting products and services based on ecological values—has begun to be widely applied in industrial sectors. this approach allows companies not only to produce competitive products but also to increase consumer trust, strengthen brand loyalty, and achieve sustainable development goals. especially through tools such as green labeling, ecological packaging, zero-waste technologies, and open communication, companies strive to turn their environmental commitments into practical actions. one of the most significant aspects of ecological marketing is that it reshapes the relationship between the company and the customer on a positive basis. today’s consumer expects not only a quality product but also one that is safe for human health and harmless to the environment. in this context, the correct selection and effective implementation of ecological marketing strategies by cleaning product manufacturers directly affect their economic sustainability and social acceptability. this research is based on this necessity and aims to analyze how effective ecological marketing strategies are in terms of economic and social impact in companies that produce cleaning products. american journal of business management, economics and banking volume 36 may2025 p a g e | 97 www.americanjournal.org through the analysis of scientific literature, conceptual modeling, and empirical foundations, the study seeks to deeply understand the practical value of ecological marketing. the research results are expected to serve as key directions in the future for developing sustainable and socially responsible marketing approaches for enterprises. literature review recent scientific studies on the formation, effectiveness, and implementation of ecological marketing strategies show that this field is well-grounded not only conceptually but also practically and is actively applied in various contexts. most studies consider ecological marketing not merely as a promotional tool but as a systemic approach integrated into a company's strategic management policies. in particular, nurjaman [1] substantiates the close link between ecological responsibility and company strategy, showing through empirical examples that this approach can directly impact financial efficiency. duong and co-authors [3] identify the positive effect of green labeling and ecological packaging elements on consumer behavior, emphasizing the process of ecological brand identification. szaban and colleagues [2] analyze the impact of such labeling on price strategies that ensure competitive advantage. these works clearly show that ecological marketing serves not only as a source of profit for companies but also as a means of shaping consumer consciousness. furthermore, jog and pani [5] highlight consumer trust as a key factor in ensuring the effectiveness of ecological marketing. their study shows that if a company fails to support its environmental claims with actual actions, this leads to “greenwashing” and a sharp decline in consumer trust. hair et al. [6] expand this approach by exploring the consumer’s visual perception. they experimentally demonstrate how ecological design, color, and symbol systems on packaging can communicate environmental values. this shows that marketing relies not only on information but also on aesthetic credibility. khalid [10] provides a conceptual analysis of how such strategies function as a communication platform that fosters social culture and environmental awareness. at the strategic level, papadas and colleagues [13] developed the concept of green marketing orientation, while dangelico and vocalelli [14] analyzed it as a strategic system. their studies emphasize the necessity of ecological strategic alignment at all levels — from the internal culture of the company to external communication. the idea of enhancing ecological approaches through innovative technologies is proposed by castelo et al. [4], who recommend digital tools as a modern management method for ecological monitoring, evaluation, and strategic planning. arioli [7] offers a sustainable design approach based on product-service systems, which integrates ecological approaches with economic benefit. finally, research conducted by manvi and co-authors [15] explains how greenwashing practices lead to social and financial negative consequences, causing dissatisfaction and distrust among consumers toward companies. methodology this study employed a theoretical-analytical approach to examine the economic and social effectiveness of ecological marketing strategies. as the primary method, content analysis was carried out based on 15 leading scholarly articles published in the past five years. these articles were selected from databases such as elsevier, sciencedirect, and others, and their strategic approaches, performance indicators, and conceptual models were compared. among the selected literature were empirically grounded analyses, innovative models, and studies evaluating consumer behavior, all analyzed american journal of business management, economics and banking volume 36 may2025 p a g e | 98 www.americanjournal.org integrally. diagrams and conceptual models were developed based on the theories studied to provide visual justification. this approach enabled an assessment of ecological marketing as a practical managerial tool. analysis and results in today’s industrial environment, ecological marketing strategies are forming not only in response to market demands but also on the basis of social responsibility and sustainability principles. based on the selected academic sources, a comprehensive analysis was conducted on the economic and social effectiveness of these strategies. the analysis revealed that ecological marketing is not just a theoretical model but a practical mechanism that can be effectively implemented at the enterprise level. each approach was evaluated in connection with the market, consumer behavior, company strategy, and technological opportunities. the economic effectiveness of green marketing strategies has been deeply analyzed in various empirical studies, most of which link it to indicators such as company revenue, costs, customer loyalty, and market share. a study by nurjaman [1] in indonesia's banking sector demonstrates that the main driving force of ecological strategies is the company's strategic environmental commitment. when this commitment is backed by real actions, it directly results in positive changes in economic indicators. the use of ecological technologies, energy-saving methods, waste reduction, and carbon footprint minimization allows for effective cost control. at the same time, consumers’ appreciation of such values enables companies to set premium pricing. through green labeling and ecological packaging, the information conveyed about the product forms a perception of quality and reliability in the consumer's mind. in their study, duong et al. [3] proved that green labels in the food industry directly influence consumer purchase decisions. they found that the presence of ecological certifications on products led consumers to give them higher ratings. szaban and colleagues [2], using the cosmetics market as an example, showed that ecologically labeled products enjoy stable price advantages over competitors. these findings are particularly relevant to the cleaning products industry, where ecological strategies provide opportunities to create added value. figure 1. economic and social effectiveness levels of green marketing strategies 0 10 20 30 40 50 60 70 80 90 100 ekologik majburiyat yashil yorliqlar kommunikatsiya raqamli yondashuv greenwashing iqtisodiy samaradorlik (%) ijtimoiy samaradorlik (%) american journal of business management, economics and banking volume 36 may2025 p a g e | 99 www.americanjournal.org the bars in the diagram represent the effectiveness of green strategies implemented at the enterprise level based on two main dimensions: economic and social. as the diagram illustrates, the “green labeling” and “digital approach” strategies yield high economic outcomes. the “environmental commitment” strategy also shows high effectiveness, though its level of social acceptance is relatively limited. meanwhile, “communication-based” strategies — those focused on interaction with consumers — are identified as the most socially effective approaches. in cases of greenwashing, however, both metrics sharply decline (figure 1). when evaluating the social impact of marketing, it is crucial to consider consumer awareness and how the company communicates with them. jog and pani [5] have analyzed the distinct role of credibility in green marketing strategies. they emphasize that if a company’s environmental claims are not supported by actual practices, consumer trust is lost, leading to negative perceptions of the brand. this phenomenon has become increasingly common in the digital communication era. in their experimental research, hair et al. [6] investigated how consumers respond to informational signals on product packaging. their observations revealed that green design elements — such as color, shape, and symbols — evoke associations in the consumer's mind with environmental purity, safety, and social responsibility. khalid [10], in his broader analysis of the social context of green marketing strategies, thoroughly explored their role in shaping environmental awareness, sustainable lifestyles, and consumption culture. during the analysis, a systematic approach to ecological marketing strategies was formed. each strategic component performs a specific function, and their synergistic interaction leads to the overall outcome. the following conceptual model clearly illustrates this: figure 2. conceptual model of ecological marketing figure 2 places four core components at the center of ecological marketing: • commitment: dedication to environmental values at a strategic level and their integration into management decisions. • labeling: visual and textual certification elements that enhance trust in the product. american journal of business management, economics and banking volume 36 may2025 p a g e | 100 www.americanjournal.org • innovation: implementation of environmentally advanced technologies in production and the use of recyclable materials. • communication: ensuring an open, transparent, and socially responsible flow of information between the brand and the customer. these four elements ultimately serve two key strategic goals: profit and brand loyalty. profit reflects the company’s financial outcomes, while brand loyalty ensures long-term consumer trust. each component in the model complements the others and reinforces the overall effectiveness of the strategy. despite good intentions, ecological marketing strategies do not always lead to the expected success. this may be due to a number of internal and external factors. the most dangerous and widespread among them is “greenwashing”—when a company attempts to appear environmentally responsible while concealing its actual lack of eco-friendly practices. simply put, greenwashing is the act of creating the impression that a company’s products or services are environmentally clean, without any real actions to back up these claims. for example, a product may be labeled “eco,” “green,” or “natural,” yet its ingredients or production process may not support such claims. a study conducted by manvi and colleagues [15] shows that such practices not only deceive consumers but also undermine their trust in the company, harm brand reputation, and may even lead to financial losses. trust is the fundamental capital of any marketing strategy. a company that loses it may not only lose its current customers but also forfeit the market’s overall positive perception. moreover, greenwashing puts the company's sustainability at risk. in an era where social media, blogs, and consumer activism are on the rise, every company action—especially ecological claims—is under close public scrutiny. any false information or suspicious activity exposed can damage not just the brand but also its stock value and major partnerships. to prevent such situations, an ecological marketing strategy must be based not just on appearance but on internal reality—on the company’s production processes, supply chains, packaging, materials used, and information policies. this inherently makes ecological responsibility not just a task for the marketing department, but an issue involving the entire company management, technological processes, and corporate culture. nurjaman [1] emphasizes another important aspect of this issue: without educating consumers, ecological strategies will not achieve the desired effect. that is, if customers do not understand what an ecological label means or do not grasp the value of “green” marketing claims, even a company’s genuine environmental efforts may go unappreciated. in such cases, instead of profit, disappointment will result. therefore, for ecological marketing to be successful, it must function in two directions: 1. at the internal level – ecological values must translate into real actions within the company’s operations: reducing waste, saving energy, and using natural materials. 2. at the external level – the company must explain these efforts to consumers in a clear, simple, and trustworthy manner, encouraging them to see themselves as part of the process. by combining these two approaches, a company builds strategic immunity in its marketing strategy. this immunity reduces the risk of greenwashing, strengthens customer trust, and, most importantly, guarantees long-term, sustainable social and economic outcomes for the company. american journal of business management, economics and banking volume 36 may2025 p a g e | 101 www.americanjournal.org conclusion and recommendations the conducted analysis has demonstrated that ecological marketing strategies are highly important and effective tools in the operations of companies producing cleaning products. green marketing approaches not only improve a company’s economic indicators but also help shape it into a socially responsible and sustainable entity. elements such as eco-packaging, green labeling, transparent communication, and internal strategic commitments enhance both the social and economic value of marketing. all these components strengthen the company’s positive image in society and increase customer loyalty. companies that successfully implement these strategies gain advantages such as cost reduction, improved brand reputation, and sustainable profit growth. in particular, when transparent and trustworthy communication is established with consumers, ecological approaches yield tangible benefits. preventing negative practices like greenwashing depends on transparency, truth-based marketing, and the practical implementation of ecological values. based on the research results, the following recommendations are proposed: • integrate ecological marketing strategies deeply into the company’s management system. this ensures that every marketing action aligns with the company’s mission and long-term goals. • strengthen educational activities aimed at shaping consumer awareness. this helps build understanding and trust in ecological products among customers. • align green labeling and ecological certification systems with international standards. this increases the global competitiveness of the brand. • base marketing activities on real ecological actions. every claim should be supported by visible, measurable results. • expand sustainable production based on innovative technologies. this allows for high economic efficiency without harming the environment. in conclusion, ecological marketing is a well-developed strategic solution tailored to modern market demands and societal needs. it strengthens the company not only through profit but also by adding intangible values such as trust, loyalty, and social recognition. every valuable and honest step taken in this direction serves as a strong foundation for the company’s present and future success. references 1. nurjaman, k. (2024). sustainable marketing: integrating green marketing practices into marketing strategy. influence: international journal of science review, 6(2), 71–89. https://influence-journal.com/index.php/influence/index 2. szaban, m., szymkowiak, a., & zdziennicka, a. (2024). unpacking consumer price perceptions: the role of sustainability and ethical labels in the cosmetics market. journal of cleaner production, 144730. https://bazawiedzy.ue.poznan.pl/docstore/download/uep2b141d3cd589425a9f262e0552c55108/ jclp144730.pdf 3. duong, n. h., quoc, t. n., & phuc, n. n. (2025). green packaging, branding, and eco-labeling strategies: perceptions in f&b industry. cleaner and responsible consumption. https://www.sciencedirect.com/science/article/pii/s2666784325000099 https://influence-journal.com/index.php/influence/index https://bazawiedzy.ue.poznan.pl/docstore/download/uep2b141d3cd589425a9f262e0552c55108/jclp144730.pdf https://bazawiedzy.ue.poznan.pl/docstore/download/uep2b141d3cd589425a9f262e0552c55108/jclp144730.pdf https://www.sciencedirect.com/science/article/pii/s2666784325000099 american journal of business management, economics and banking volume 36 may2025 p a g e | 102 www.americanjournal.org 4. castelo, s., et al. (2024). digital tools in climate adaptation governance in malaysia. in the palgrave handbook of sustainable digitalization for business, industry, and society. https://www.researchgate.net/publication/382794380 5. jog, d., & pani, v. (2024). a review of consumer understanding of green marketing and deceptive green marketing. in sustainable development seen through the lenses of... springer. 6. hair, m., depoister, h., & hershberger, e. (2025). the “green” knight in silver armor: using label color and package shape to overcome the weakness bias against eco‐friendly detergent. journal of philanthropy. https://onlinelibrary.wiley.com/doi/abs/10.1002/nvsm.70019 7. arioli, m. (2023). design for sustainability in manufacturing: a product-service system (pss) approach. industrial design journal. 8. febriani, r. (2025). analisis strategi csr dalam meningkatkan green performance. csb jurnal ekonomi & bisnis, 1(1), 57–68. 9. fuchs, p., et al. (2020). promoting sustainable development in higher education institutions. international journal of sustainability in higher education, 21(7), 1477–1505. 10. khalid, a. (2023). sustainable marketing and its impact on society: a study of marketing strategies and opportunities promoting eco-friendly lifestyle. ssrn. https://ssrn.com/abstract=4570227 11. park, j. y., et al. (2022). sustainable marketing strategies as an essential tool of business. american journal of economics and sociology, 81(2), 359–379. 12. kumar, p., & ghodeswar, b. (2015). green marketing mix: a review of literature and direction for future research. international journal of asian business and information management, 6(3), 42–59. 13. papadas, k.-k., avlonitis, g. j., & carrigan, m. (2017). green marketing orientation: conceptualization, scale development and validation. journal of business research, 80, 236– 246. 14. dangelico, r. m., & vocalelli, d. (2017). “green marketing”: an analysis of definitions, strategy steps, and tools. journal of cleaner production, 165, 1263–1279. 15. manvi, m., sharma, a., & jain, v. (2019). greenwashing: a study on the effects of greenwashing on consumer perception and trust build-up. amity university research paper. https://www.researchgate.net/publication/331630061 https://www.researchgate.net/publication/382794380 https://onlinelibrary.wiley.com/doi/abs/10.1002/nvsm.70019 https://ssrn.com/abstract=4570227 https://www.researchgate.net/publication/331630061 american journal of business management, economics and banking issn (e): 2832-8078 volume 40, september 2025 p a g e | 47 www.americanjournal.org cooperation with international financial institutions in the development of the bank's investment activities khujumov nurbek obidjon ugli independent researcher tashkent state university of economics email: hardman1990@gmail.com a b s t r a c t k e y w o r d s the article analyzes the role and importance of cooperation with international financial institutions in the development of banks' investment activities. credit lines, grants, and technical assistance from the world bank, the asian development bank, the european bank for reconstruction and development, the international finance corporation, the islamic development bank, and other financial institutions are considered an important source for increasing the stability of the banking system. the possibilities of attracting longterm resources to the banking sector through international cooperation, developing capital markets, introducing digital technologies, supporting small and medium-sized businesses, and expanding green finance mechanisms will also be substantiated. according to the research results, effective cooperation with international financial institutions strengthens the investment potential of banks and serves the sustainable development of the country's economy. bank investment activity, international financial institutions, world bank, asian development bank, european bank for reconstruction and development, international finance corporation (ifc), islamic development bank, capital market, credit lines, small and medium-sized businesses, green finance, sustainable development, basel standards. introduction in the process of global integration of the modern world economy, international financial institutions play an increasingly important role in the development of countries' banking systems. such authoritative organizations as the world bank, the international monetary fund, the asian development bank, the european bank for reconstruction and development, and the islamic development bank are key partners in modernizing and adapting the financial sector of developing countries to international standards. the experience, financial resources, and technological capabilities of these institutions are of strategic importance for opening new investment areas and increasing the competitiveness of local banks. in the context of increasing interdependence of global financial markets, countries cannot develop their banking systems in a closed manner and face the need to comply with international standards. cooperation with international financial institutions creates opportunities not only for attracting financial resources, but also for mastering modern banking american journal of business management, economics and banking volume 40 september2025 p a g e | 48 www.americanjournal.org technologies, improving risk management systems, developing human capital, and entering international financial markets. this process will allow local banks to offer new business models, products, and services, as well as quickly adapt to global financial trends. one of the most important problems of the banking sector of developing countries is the issue of capital adequacy and financial stability. international financial institutions provide comprehensive assistance to local banks in expanding their capital base, ensuring compliance with basel standards, and financial stability. through subordinated loans, hybrid capital instruments, technical assistance programs, and consulting services, local banks are strengthening their financial position. international financial institutions also provide an opportunity to exchange experience in improving stress-testing methodologies, risk management systems, internal control mechanisms, and corporate governance practices. this cooperation is a prerequisite for local banks to improve their international ratings, increase credit ratings, and enter global financial markets. in addition, international financial institutions assist local banks in implementing modern approaches in the field of liquidity management, currency risk management, and financial planning. in the era of the digital economy and fintech revolution, domestic banks face the need to utilize the experience and resources of international financial institutions in mastering modern technologies. through international cooperation, local banks have the opportunity to use modern tools in their activities, such as artificial intelligence, machine learning, blockchain technologies, cloud computing, and big data analysis. the implementation of mobile banking, digital payments, robo-consulting services, online lending platforms, and protection systems against cyber threats is being carried out with the support of international experts. international financial institutions also assist in the development of digital transformation strategies, the modernization of it infrastructure, and the implementation of personnel training programs in modern technologies. this process allows local banks to attract new customer segments, improve service quality, reduce operating costs, and strengthen competitiveness. it is also important to use international experience in cooperation with fintech companies, creating a digital ecosystem, and developing innovative products. cooperation with international financial institutions helps local banks to master new investment areas in addition to traditional lending activities. opportunities are being created to operate in such special sectors as green financing, sustainable development projects, microfinancing, agricultural financing, infrastructure financing, and socially effective investments. with the help of international experts, local banks acquire special knowledge and skills in these areas, develop relevant products, and master market segments. opportunities are also being created for integration with international financial markets, participation in cross-border investment projects, and the implementation of regional cooperation programs. by adopting complex financial products such as project finance, structured finance, trade finance, and syndicated lending, local banks are gaining the opportunity to expand their service spectrum and access high-income segments. this diversification strategy allows banks to distribute risks, create new sources of income, and strengthen their position in the market. one of the main factors in the development of the bank's investment activity is the availability of highly qualified personnel. cooperation with international financial institutions provides an opportunity to implement comprehensive training and advanced training programs for local bank employees. training programs are being implemented through special training courses, seminars, trainings, and online educational platforms in such areas as risk management, investment analysis, financial markets, international banking, corporate finance, and digital banking. international certification programs, american journal of business management, economics and banking volume 40 september2025 p a g e | 49 www.americanjournal.org opportunities for obtaining professional qualifications, and internships in international banks and financial institutions contribute to improving the professional level of domestic specialists. it is also possible to get acquainted with new trends and methodologies in the banking sector through research and development activities, scientific conferences, membership in professional associations, and knowledge exchange programs. this approach creates the necessary human capital for local banks to implement modern banking practices, operate in accordance with international standards, and develop professional expertise. literature review in the process of analyzing the literature on the topic, a number of leading world economists and specialists have conducted scientific research on cooperation with international financial institutions in the development of banking investment activity. among them, u. burkhanov in his works, he emphasizes the transformation of the banking system of uzbekistan and the importance of technical assistance (ta) provided by international financial institutions[1]. according to him, the recommendations and ta programs of the imf and the world bank are important for improving risk management, capital adequacy, and prudential supervision of banks, especially for directing stateowned banks towards commercial activities and improving the quality of loan portfolios. burkhanov also shows that investment activity can be expanded through training local personnel in the field of financial education, stress tests, and macroprudential policy through cooperation with international institutions. its analysis shows that in the context of uzbekistan, technical assistance and financial instruments from ifis serve to increase the potential of banks to finance private sector projects [2,3,4]. in his works, j.e.stiglitz examines the relationship between international financial institutions and banks in a broader socio-economic context. he wrote in detail that ifis (imf/world bank) help stabilize the financial system and reform banks through policy recommendations, but local institutional characteristics should not be overlooked in these processes. stiglitz, in particular, proposes reforming the financial sector in conjunction with institutional strengthening and social protection measures, in addition to an approach focused on loans and macro indicators this will serve to increase the investment activity of banks. at the same time, he emphasizes the need to adapt the standard proposals of ifis to the context of each country[5]. b.eichengreen has written extensively in his works on the international financial architecture and the role of ifis; he emphasizes the importance of cooperation between ifis and banks within the framework of macroeconomic stability, liquidity guarantees, and crisis management. according to his approach, ifis serve to restore trust in the banking system through technical assistance, stress tests, macroprudential measures, and recommendations for managers. eichengreen also considers the modernization of global financial institutions and their cooperation with banks in terms of complex cross-border risk management. in practice, it proposes strengthening international regulation, debt mechanisms, and financial infrastructure[6]. t. beck is known as a scientist who demonstrated the connection between the development of the banking system and economic growth through empirical research. it shows that the development of banks increases the financing of small and medium-sized businesses and, thereby, investment activity in this process, ifis can act as a catalyst for strengthening the banking system through direct technical assistance and financing. beck's research suggests that if the best-practice approaches used by ifis are adapted to the country's banking segment, lending will expand and investments will grow. as practical american journal of business management, economics and banking volume 40 september2025 p a g e | 50 www.americanjournal.org recommendations, he cites strengthening banking supervision, developing the securities market, and increasing the inclusiveness of microfinance[7]. in his works, s.guriev analyzes the role of institutions and economic policy in attracting investments through banks in the context of the cis countries. in his work, he shows that the lack of private property rights, corporate governance, and control mechanisms can hinder banks from effectively lending and attracting foreign investment. guriev emphasizes that cooperation between ifis and banks including complex loan guarantees and regulatory assistance in accordance with international standards will contribute to increasing the reliability of financial institutions in the cis countries. in practice, he recommends aligning national legislation with international norms and strengthening independent banking supervision[8]. in empirical research, a.yakovlev studies how the mismatch between government policy and the real business environment affects the activities of banks and investment flows. it shows that there may be a discrepancy between the announcement of formal reforms and bank-market integration; therefore, it is necessary to ensure that assistance projects from ifis (for example, bank modernization, loan guarantees) reach firms at the real level. yakovlev recommends the use of monitoring at the local and regional levels, surveys measuring the experience of firms, and pilot programs in cooperation with ifis[9]. the analysis of a. kudrin shows the role of strategic partnership between ifis and national governments in ensuring macroeconomic stability. he emphasizes that the stability of public administration and fiscal policy will ensure the proper use of loans and financial instruments received from ifis, which will help attract long-term investments through banks. kudrin provides recommendations for strengthening financial markets through cooperation with ifis, increasing resilience to sanctions and external measures, and creating new financial institutions (for example, national investment funds) [10]. in her work, i. levina and her colleagues in the cis countries emphasize measuring the practical impact of the reforms implemented using banks and ifis through empirical surveys. they show that by measuring the experience of firms, it is possible to assess whether bank loans actually reach small and medium-sized businesses and how effectively ifis are working. levina recommends strengthening joint monitoring and evaluation (m&e) systems with ifis, as well as introducing standards aimed at increasing stability and transparency for local banks[11]. research methodology in the development of the bank's investment activity, such methods of economic research as analysis of research conducted by world scientists on cooperation with international financial institutions, collection of all information on the topic, comparison, and logical thinking were used. analysis and discussion of the results modern banking investment activity requires complex systems of regulation and control. international financial institutions provide comprehensive technical assistance to local central banks and regulatory bodies in implementing basel standards, improving risk management systems, and updating control methodologies. opportunities are being created to study modern approaches, such as prudential control, macroeconomic policy, stress-testing methodologies, control of systemically important banks, and regulation of fintech companies. international financial institutions also contribute to the exchange american journal of business management, economics and banking volume 40 september2025 p a g e | 51 www.americanjournal.org of experience in data exchange, cross-border control cooperation, maintaining financial stability, and developing anti-crisis measures. this cooperation will allow local regulatory bodies to create a regulatory framework consistent with international practice, ensure the stability of the banking system, and increase the overall efficiency of the financial system. in addition, methods for combating modern threats, such as anti-money laundering, combating financing of terrorism, cybersecurity, and data protection, are being improved through international cooperation. in the 21st century, the principles of sustainable development and the concept of social responsibility are becoming increasingly important in banking activities. international financial institutions assist local banks in the development and implementation of environmentally and socially responsible investment programs. opportunities are being created to study green bonds, socially impact bonds, sustainable financing products, and environmental risk assessment methodologies. an exchange of experience is being carried out in the areas of financial risks associated with climate change, calculating the carbon footprint, financing renewable energy projects, and applying the concept of a circular economy in banking. international financial institutions also assist in the development of programs in the areas of gender equality, financial inclusion, support for small and medium-sized businesses, agricultural development, and other social areas. this approach allows local banks not only to fulfill social responsibility, but also to master new market segments, strengthen the brand's reputation, and ensure long-term sustainable growth. cooperation with international financial institutions in the development of the bank's investment activities will acquire a more strategic character in the future, and cooperation in innovative areas will be expanded. cooperation will develop in such areas as the widespread introduction of artificial intelligence and machine learning technologies, the creation of new financial products based on the blockchain, the use of central bank digital currencies, and the application of quantum computing technologies in banking. future areas of cooperation include the application of metaverse and virtual reality technologies in banking services, the creation of new financial ecosystems based on the internet of things, and the exploration of investment opportunities in the field of biotechnology. along with international financial institutions, programs for the creation of regional financial centers, the development of cross-border payment systems, and the deepening of international financial integration are also important areas. this strategic partnership will allow local banks not only to master modern technologies, but also to become active participants in the global financial system and take a leading position in the region. in the future, this cooperation is expected to make a significant contribution to the overall economic development of the country and strengthen its position in international financial markets, therefore, continuous research and strategic planning in this area is one of the most pressing tasks of modern banking science and practice. american journal of business management, economics and banking volume 40 september2025 p a g e | 52 www.americanjournal.org table 1 cooperation with international financial institutions in the development of the bank's investment activities[2, 3, 4, 12] direction participation of international financial institutions suggested strategies attraction of financial resources world bank, european bank for reconstruction and development (ebrd), asian development bank expansion of international credit lines, increasing state guarantees, diversification of the financial market capital market development ifc (international finance corporation), imf, ebrd placement of bank bonds in international markets, implementation of ipo and sukuk mechanisms transfer of technology and innovation world bank, adb, islamic development bank (isdb) strengthening fintech cooperation, introducing digital banking services based on international experience support for small and mediumsized businesses ebrd, ifc, kfw (development bank of germany) expansion of sme funds through international grant and credit lines, creation of guarantee funds sustainable development and green investments green climate fund, adb, eib (european investment bank) implementation of "green banking" standards, issuance of green bonds, use of international grants personnel capacity building imf, world bank, ebrd international trainings, joint educational programs, involvement of international experts risk management and monitoring imf, bis (bank for international settlements) full implementation of basel standards, expansion of cooperation with international rating agencies cooperation with international financial institutions in the development of the bank's investment activities will allow attracting long-term and affordable resources to the country's financial market, expanding the capital market, transferring technologies, and supporting small and medium-sized businesses. such institutions as the world bank, the asian development bank, and the european bank for reconstruction and development contribute to increasing the investment potential of the banking system through credit lines, grants, and technical assistance. however, existing problems expensive loans, weak securities market, ineffective risk management systems require further deepening of international cooperation. therefore, the banking system can improve its activities by expanding international credit lines, introducing new financial instruments in the capital market, and fully applying basel standards. cooperation with international financial institutions is important not only for attracting financial resources, but also for the qualitative development of the banking system. in particular, startups and smes supported by the ebrd and ifc, along with strengthening the financial foundations of entrepreneurial activity, contribute to the creation of new jobs in the country. at the same time, cooperation with the green climate fund and eib provides an opportunity to develop the green finance market, finance environmental projects, and widely implement the principles of sustainable development. by improving the qualifications of bank employees, mastering international experience, and developing digital banking services, the national banking system will approach modern global financial standards. as a result, effective cooperation with international financial institutions will serve as a strategic factor in ensuring the stability of the bank's investment activity and increasing the american journal of business management, economics and banking volume 40 september2025 p a g e | 53 www.americanjournal.org competitiveness of the national economy. the importance of cooperation with international financial institutions (ifis) in the development of banks' investment activities is increasing. this cooperation plays an important role in modernizing the national economy, supporting the private sector, and ensuring sustainable growth. ifis (e.g., the world bank, the international monetary fund, the asian development bank, and the european bank for reconstruction and development) provide financial resources, technical assistance, and best practices to banks. this will strengthen the investment potential of banks and create opportunities for financing large, long-term projects. as a result, it will be easier to attract investments in such areas as large infrastructure projects, modernization of industry, and development of agriculture. cooperation with ifis allows banks to access long-term and affordable financial resources. local banks often have short-term resources, which makes it difficult to finance large infrastructure projects or capital-intensive production facilities. ifis provide low-interest and long-term credit lines, which helps banks expand their investment portfolios. this type of financing is especially effective in such important areas as the introduction of new technologies, increasing energy efficiency, and the transition to a "green" economy. as a result, these investments increase the country's competitiveness. in addition, cooperation with ifis contributes to strengthening institutional capacity and improving corporate governance. in addition to financing, ifis provide technical assistance and consultations to banks on the implementation of modern management systems, the application of international risk management standards, and increasing transparency. this will increase the stability of banks and help them gain the trust of foreign investors. through cooperation with ifis, banks will adopt the best international practices for evaluating, implementing, and monitoring investment projects, which will significantly increase investment efficiency. cooperation with ifis also allows for the diversification of financial resources for investment projects. local banks rely primarily on domestic deposits and capital markets. ifis serve as an additional source of external financing. this diversification increases the stability of the financial system and reduces the impact of internal economic shocks. diversification of the investment portfolio also expands the possibilities of banks for financing projects in various sectors (for example, agriculture, small and medium-sized businesses, services). another important aspect of cooperation with ifis is the exchange of international experience and the introduction of new technologies. through their global network, ifis contribute to the dissemination of successfully implemented projects and best practices in various countries to local banks. this will help banks apply innovations in their activities, introduce new products and services (for example, digital banking services, fintech solutions). as a result of such cooperation, banks can offer fast and efficient services that meet modern requirements. cooperation with ifis also increases the influence of banks on local economic development. ifis often provide their loans with the condition of supporting socially and environmentally responsible projects. this directs banks to finance projects that are not only financially beneficial but also important for society. for example, projects such as the construction of schools, hospitals, drinking water supply, or the use of renewable energy sources. thus, through cooperation with ifis, banks contribute not only to economic, but also to social development. american journal of business management, economics and banking volume 40 september2025 p a g e | 54 www.americanjournal.org conclusions and suggestions cooperation with international financial institutions is one of the important factors in expanding the investment potential of banks, through which long-term and affordable financial resources are attracted. this process, along with increasing the liquidity of the banking system, creates a stable investment climate in the economy. support from the world bank, the asian development bank, the ebrd, the ifc, and other institutions will expand banks' access to the capital market, contribute to the diversification of financial instruments, and stimulate economic growth by supporting small and medium-sized businesses. cooperation with international financial institutions provides not only financial support, but also technology transfer, personnel training, the introduction of risk management standards, and the development of the green financial market. this serves as a decisive factor in increasing the stability and competitiveness of the banking system. increasing the possibilities of banks for financing investment projects through the effective use of international credit lines, grants, and guarantee mechanisms. deepening the securities market in cooperation with international financial institutions, placing bank bonds in international markets, and introducing islamic financial instruments such as sukuk. development of digital banking services, creation of joint projects with fintech startups, and integration of best practices of international institutions into the national banking system. stimulating the activities of smes by expanding special funds based on grants and credit lines from international financial institutions, developing guarantee mechanisms. financing environmentally friendly projects, implementing "green banking" standards, and issuing green bonds in cooperation with the green climate fund, eib, and other institutions[12]. development of knowledge and skills in the banking system in accordance with international standards through the organization of advanced training courses, joint educational programs, and expert exchange in cooperation with international financial institutions. references 1. burkhanov, u., maitah, m., & amonov, k. (2015). the problems of investment climate in uzbekistan. review of european studies. retrieved from https://www.researchgate.net/publication/282466053_the_problems_of_investment_climate_in _uzbekistan. researchgate 2. world bank. (2022). uzbekistan — financial sector reform project (project document). world bank documents. retrieved from https://documents.worldbank.org/en/publication/documentsreports/documentdetail/341821651843155856. world bank+1 3. imf. (2024). technical assistance report — macro stress testing of the uzbek banking sector (may 2024). retrieved from https://www.imf.org//media/files/publications/tar/2025/english/tarea2025032-print-pdf.ashx. imf 4. ifc / world bank group. (2020). enhancing financial capability and inclusion in uzbekistan (ifc report). retrieved from https://www.ifc.org/content/dam/ifc/doc/mgrt/financial-capabilityand-inclusion-eng.pdf. ifc 5. stiglitz, j. e. (2002). globalization and its discontents. w. w. norton & company. 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(2009). out-of-the-box thoughts on the international financial architecture (imf working paper no. 09/116). retrieved from https://www.imf.org/external/pubs/ft/wp/2009/wp09116.pdf. imf 7. beck, t., levine, r., & loayza, n. (2000/2004). finance and the sources of growth / finance, firm size, and growth. world bank / nber. retrieved from https://documents.worldbank.org/curated/en/772161468782107741/pdf/finance-and-thesources-of-growth.pdf and https://www.nber.org/system/files/working_papers/w10983/w10983.pdf. world bank+1 8. guriev, s. (various). works on state capitalism, institutions and economic development (see ebrd/project syndicate outputs). examples: project syndicate essays and working papers. retrieved from https://economics.princeton.edu/wp-content/uploads/2022/02/transcript-2.pdf. economics.princeton.edu+1 9. yakovlev, a., levina, i., & kazun, a. (2015). attitude to the national leader through the lenses of investment climate assessment: the case of russia (hse working paper). retrieved from https://wp.hse.ru/data/2015/09/17/1074983794/98ec2015.pdf. wp.hse.ru+1 10. kudrin, a. (2013). russia and the global financial crisis (gaidar institute / papers). retrieved from https://iep.ru/files/repec/gai/wpaper/0081kudrin.pdf and historical imf statements. iep.ru+1 11. levina, i. (various). empirical studies on investment climate and firm surveys in russia (google scholar profile / world bank collaborations). retrieved from https://scholar.google.com/citations?hl=en&user=r0pnrcsaaaaj. scholar.google.com 12. european investment bank / regional report. (2012). banking in the eastern neighbours and central asia — challenges and opportunities. retrieved from https://www.eib.org/files/efs/economic_report_banking_enca_en.pdf. https://www.imf.org/external/pubs/ft/wp/2009/wp09116.pdf?utm_source=chatgpt.com https://www.imf.org/external/pubs/ft/wp/2009/wp09116.pdf?utm_source=chatgpt.com https://documents.worldbank.org/curated/en/772161468782107741/pdf/finance-and-the-sources-of-growth.pdf?utm_source=chatgpt.com https://documents.worldbank.org/curated/en/772161468782107741/pdf/finance-and-the-sources-of-growth.pdf?utm_source=chatgpt.com https://www.nber.org/system/files/working_papers/w10983/w10983.pdf?utm_source=chatgpt.com https://documents.worldbank.org/curated/en/772161468782107741/pdf/finance-and-the-sources-of-growth.pdf?utm_source=chatgpt.com https://economics.princeton.edu/wp-content/uploads/2022/02/transcript-2.pdf?utm_source=chatgpt.com https://economics.princeton.edu/wp-content/uploads/2022/02/transcript-2.pdf?utm_source=chatgpt.com https://wp.hse.ru/data/2015/09/17/1074983794/98ec2015.pdf?utm_source=chatgpt.com https://wp.hse.ru/data/2015/09/17/1074983794/98ec2015.pdf?utm_source=chatgpt.com https://www.iep.ru/files/repec/gai/wpaper/0081kudrin.pdf?utm_source=chatgpt.com https://scholar.google.com/citations?hl=en&user=r0pnrcsaaaaj&utm_source=chatgpt.com https://scholar.google.com/citations?hl=en&user=r0pnrcsaaaaj&utm_source=chatgpt.com https://www.eib.org/files/efs/economic_report_banking_enca_en.pdf?utm_source=chatgpt.com american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 191 www.americanjournal.org strategic communication and change management in the hospitality industry in rivers state laguo livingstone gilbert department of business administration federal university otuoke bayelsa state, nigeria laguog@gmail.com lolo teddy adias department of business administration and management bayelsa state polytechnic email for correspondence: loloadia@yahoo.com a b s t r a c t k e y w o r d s the hospitality industry in nigeria, particularly in rivers state, faces persistent volatility stemming from infrastructural deficits, security concerns, and evolving customer expectations. as a result, change management has become a vital organizational function, requiring not only strategic planning but also effective internal communication. this study investigates the role of strategic communication in facilitating successful change management within hospitality firms in rivers state. specifically, it examines how communication clarity, timeliness, channel appropriateness, and employee involvement influence employees’ readiness for change, resistance levels, and overall implementation outcomes. adopting a quantitative research design, the study utilized a structured questionnaire distributed to a stratified sample of 173 employees from selected hospitality firms. a total of 142 valid responses were analyzed using spss version 26. the findings revealed that all four dimensions of strategic communication significantly and positively predicted change management success, with employee involvement emerging as the strongest predictor (β = 0.318, p < 0.001). these results underscore the importance of participatory, timely, and clear communication practices in shaping employee support and aligning behavior with new organizational goals. the study concludes that strategic communication is not merely a supportive function but a critical enabler of organizational transformation in the hospitality sector. it recommends that hospitality managers institutionalize clear, responsive change management, employee involvement, hospitality industry, strategic communication american journal of business management, economics and banking volume 37 june2025 p a g e | 192 www.americanjournal.org communication frameworks and prioritize employee engagement throughout the change process to enhance adaptability, minimize resistance, and ensure more sustainable change outcomes in a rapidly evolving industry environment. introduction the hospitality industry plays a pivotal role in global economic development, contributing significantly to gdp, employment, and cultural exchange. globally, it has evolved into one of the largest and fastestgrowing sectors, accounting for about 10% of global gdp and supporting millions of jobs across diverse economies (world travel & tourism council, 2023). in africa, the industry has become a vital engine of economic diversification, especially in countries seeking to reduce dependence on extractive industries. nigeria, in particular, boasts a growing hospitality landscape driven by increased urbanization, a rising middle class, and investments in tourism and event-driven businesses. despite these opportunities, the nigerian hospitality sector remains highly dynamic and volatile, impacted by infrastructural gaps, security concerns, policy inconsistencies, and rapidly shifting consumer expectations (bama et al., 2022; waale & onuoha, 2023). the volatile environment of the hospitality industry necessitates frequent organizational changes such as digital transformation, rebranding, safety policy adaptation, and service restructuring, thereby positioning change management as a critical organizational capability. within rivers state hospitality businesses must frequently adapt to the challenges of fluctuating demand, technological advancement, and workforce variability, all while striving for service innovation and operational efficiency (waale & onuoha, 2023) however, the success of such change initiatives hinges on the organization’s ability to communicate change effectively to internal stakeholders. poorly executed communication often results in confusion, misalignment, employee resistance, and project failure. this brings to the fore the role of strategic communication—defined as the intentional use of communication to advance organizational goals (hallahan et al., 2007). within the context of organizational change, strategic communication serves as a bridge between leadership and employees, helping to cultivate trust, convey vision, and foster ownership (lewis, 1999). the dimensions of strategic communication—communication clarity, timeliness, channel appropriateness, and employee involvement—are central to ensuring that messages are not only understood but also internalized. these dimensions support the creation of meaningful dialogue, reduce misinformation, and drive engagement, making them particularly important in a service-intensive industry like hospitality where employee interaction directly affects customer satisfaction and brand experience (rita-men et al., 2022). in the hospitality sector, effective change management enables organizations to stay competitive, retain talent, enhance service quality, and respond to environmental shifts. especially in rivers state’s hospitality landscape, marked by both opportunity and volatility, successful change management is critical to organizational resilience and long-term viability. however, despite its importance, change management is often undermined by inadequate communication practices—resulting in disruptions, employee disengagement, and failed transformations (mishra et al., 2014). a review of existing literature (daly et al., 2003; kitchen & daly, 2002; neves & eisenberger, 2012) reveals increasing scholarly attention to the intersection of communication and change. consequently, american journal of business management, economics and banking volume 37 june2025 p a g e | 193 www.americanjournal.org effective communication has been linked to higher employee trust, reduced resistance, and improved change outcomes. luo & jiang (2014) primarily focused on multinational corporations or tech-driven firms. other studies (omolabi & olakunle, 2024; waale & onuoha, 2023) have explored how these dynamics unfold in the nigerian context, particularly within the hospitality industry of rivers state— a region characterized by unique socio-cultural, infrastructural, and organizational variables. ineffective strategic communication during change has been linked to significant organizational symptoms, including increased employee turnover, customer dissatisfaction, productivity decline, and loss of competitive advantage. these consequences manifest in poor service delivery, fragmented internal culture, and ultimately financial losses (french & holden, 2012; rita-men et al., 2022). in regions like rivers state, where businesses must simultaneously manage market uncertainty and human capital challenges, understanding the symptoms and implications of failed communication is essential. as verčič et al. (2012) assert, internal communication is evolving into a strategic management discipline, and its impact on organizational change needs deeper empirical exploration, especially in high-contact industries like hospitality. therefore, this study intends to examine the influence of strategic communication on change management in hospitality organizations in rivers state, nigeria. specifically, it seeks to investigate how clarity of communication, timeliness of delivery, suitability of communication channels, and employee involvement contribute to successful change initiatives. by focusing on a service-driven and culturally diverse sector, the research aims to provide practical insights for managers and policymakers on how to leverage communication strategies for effective change. ultimately, the goal is to support the development of adaptive, transparent, and employee-centered communication models that can enhance organizational agility and success in the hospitality industry. purpose of the study the purpose of this study is to examine how strategic communication influences change management in hospitality organizations in rivers state, nigeria. it aims to explore how hotel leaders use internal communication strategies to engage employees, reduce resistance, and ensure smooth transitions during organizational change. special focus will be placed on the roles of clarity, timeliness, channel appropriateness, and employee involvement in shaping communication effectiveness. literature review theoretical framework this study is underpinned by communication theory and social exchange theory (set), both of which offer complementary perspectives for understanding how strategic communication facilitates effective change management in the hospitality industry in rivers state, nigeria. communication theory provides a foundational lens through which the processes, mechanisms, and effects of organizational communication can be systematically understood. rooted in early transmission models such as that of shannon and weaver (1949), the theory has evolved to embrace more interactive, interpretive, and organizationally embedded approaches (craig, 1999; schramm, 1954). in particular, craig’s (1999) meta-theoretical synthesis of various traditions—including rhetorical, sociopsychological, and cybernetic—positions communication not merely as a conduit for message delivery but as a constitutive force in shaping organizational life. from this standpoint, communication is central to how meanings are negotiated, roles are understood, and actions are coordinated, american journal of business management, economics and banking volume 37 june2025 p a g e | 194 www.americanjournal.org particularly during periods of organizational change (men & stacks, 2014). the central argument is that change messages must be coherent, context-sensitive, and emotionally resonant in order to foster employee alignment and reduce resistance (christensen, 2014). therefore, communication theory anchors this study's independent variable—strategic communication—by illustrating how its various components enable the social construction of meaning, sense-making, and organizational identity during change processes (mazzei, 2014; ). social exchange theory (set), on the other hand, offers a relational and motivational perspective, explaining why employees respond to communication efforts in particular ways. originating from early studies (blau, 1964; homans, 1958), set posits that workplace interactions are governed by reciprocal exchanges of tangible and intangible resources such as trust, recognition, support, and information. applied to internal communication, set suggests that when leaders communicate openly, consistently, and empathetically, employees perceive these actions as high-value exchanges that elicit positive reciprocal behaviors, including loyalty, commitment, and change support (rhoades & eisenberger, 2002). saks (2006) further asserts that employee engagement—often a determinant of change success—is shaped by the perception of organizational support, of which communication is a central component. in change management contexts, set becomes especially salient. employees assess not only the content of change messages but also the intent and sincerity of their communicators. honest, transparent communication helps to reduce uncertainty, foster psychological safety, and reinforce affective commitment (meyer & allen, 1991; verčič & vokić, 2017). this sense of fairness and mutual respect increases employees’ willingness to cooperate with change initiatives and decreases resistance. conversely, ambiguous or top-down communication that excludes employee input is interpreted as low-value exchange, leading to disengagement, distrust, and high turnover intention (luo & jiang, 2014). concept of strategic communication strategic communication refers to the purposeful use of communication by an organization to fulfill its mission and achieve long-term objectives. it involves crafting messages that are clear, consistent, and aligned with organizational goals, while considering the needs and perceptions of both internal and external stakeholders. it is grounded in organizational communication, which focuses on how individuals interpret and respond to messages within institutional settings (nzitunga, 2016). strategic communication requires a balance between maintaining stability through established communication patterns and adapting to change with innovative messaging strategies (winkler & zerfass, 2016). effective strategic communication enhances learning, fosters engagement, and promotes growth by ensuring that information is accurate, timely, and relevant (kang et al., 2016). it includes both downward and upward communication flows, where leadership conveys vision, feedback, and procedures, and employees communicate concerns, improvements, and client feedback. the effectiveness of strategic communication also depends on adopting appropriate communication styles that align with individual personality and situational demands. consistency in communication improves task efficiency and reduces misunderstandings, especially during organizational change (liu, 2016). clarity american journal of business management, economics and banking volume 37 june2025 p a g e | 195 www.americanjournal.org clarity, derived from the latin word claret meaning brightness, refers to the quality of being coherent, intelligible, and free from ambiguity. in communication, it ensures that the message is clearly understood by the receiver, minimizing misinterpretation and confusion. according to lingard (2022), clarity is the foundation upon which all other communication goals rest be it persuasion, argument, or expression. according to clampitt (2016), communication clarity entails both the structure of the message and the simplicity of the language used. managers who communicate with clarity are more likely to foster trust, increase engagement, and minimize the cognitive strain on employees. hallahan et al. (2007) argue that clarity is one of the core principles of strategic communication, essential for aligning stakeholders with organizational goals. in strategic initiatives such as branding, crisis management, and internal transformation, clear communication enhances transparency and builds credibility. timeliness timeliness in communication refers to the delivery of information at the most appropriate moment, ensuring that messages reach stakeholders when they are most needed and can yield the greatest impact. it is a critical element in both internal and external organizational communication, as it influences decision-making, responsiveness, and the overall success of strategic initiatives. timely communication improves operational efficiency, reduces ambiguity, and enhances coordination within organizations. as noted by allen et al. (2007), timely dissemination of information increases employees' confidence and perception of leadership credibility, especially during periods of change. similarly, clampitt (2016) highlights that the speed with which information is delivered can affect employees’ emotional readiness and trust in management during transitions. furthermore, welch and jackson (2007) emphasize that timely internal communication strengthens employee engagement and supports trust-building, particularly when organizations undergo transformation. in rapidly evolving environments, especially with digital technologies, timeliness supports real-time updates and responsiveness, which are essential for maintaining a competitive edge. channel a communication channel refers to the medium or method through which a message is transmitted from sender to receiver. channels can be verbal or non-verbal, formal or informal, synchronous (e.g., face-to-face, phone calls) or asynchronous (e.g., emails, memos). the effectiveness of communication often depends on the appropriateness of the channel used, considering the message content, urgency, audience, and organizational context. selecting the right channel is crucial for ensuring message clarity, engagement, and feedback. according to hossain and rahman (2022), the strategic selection of communication channels significantly influences employee understanding and participation, especially in organizational transformation settings. pereira et al. (2021) highlight that digital transformation in organizations has led to a shift from traditional channels to integrated digital platforms, which offer speed, interactivity, and broader reach. however, the choice of digital or face-to-face channels should align with the complexity of the message and the emotional intelligence required. furthermore, gutiérrez-garcía et al. (2023) stress that multichannel communication strategies enhance employee satisfaction and organizational transparency when they are well-coordinated and responsive to employee preferences. american journal of business management, economics and banking volume 37 june2025 p a g e | 196 www.americanjournal.org employee involvement employee involvement refers to the active participation and commitment of employees in organizational processes, decision-making, and change management efforts. it encompasses the cognitive, emotional, and behavioral investment of employees in their work and the organization (alagaraja & shuck, 2015). involvement goes beyond task completion it includes communication, awareness, initiative, and alignment with organizational goals. employees who are involved are more likely to take ownership of their roles, communicate openly, and contribute to continuous improvement, especially during periods of change (mishra et al., 2014). involvement manifests in various forms some employees are fully engaged, others are passively involved, while some may be actively disengaged (robinson, 2012). engaged employees tend to align closely with organizational vision and maintain high performance levels, whereas disengaged employees may feel disconnected or dissatisfied, often resisting collaboration or expressing dissent (liton, 2016; payne, 2014). however, dissent can sometimes serve as valuable feedback when properly addressed by leadership. effective employee involvement is often facilitated by transparent communication, supportive leadership, and an environment that acknowledges work-life balance (adame-sanchez et al., 2016). organizational policies that support family needs and foster inclusion can increase involvement. additionally, factors such as culture, language, and location can influence how employees interpret and engage with organizational messages (jowers et al., 2016). successful organizations integrate structured communication systems, regular assessments, and strong team dynamics to promote employee involvement and mitigate barriers to engagement (yoerger et al., 2015; zacher et al., 2015). as the pace of organizational change accelerates, involving employees becomes not just a matter of participation but a strategic necessity for navigating uncertainty and fostering resilience (spencer, 2013; wilson, 2012). ultimately, employee involvement is both a driver and a reflection of organizational culture where leadership, trust, and shared responsibility intersect to build performance and sustainability. concept of change management change management is the deliberate, systematic approach by which organizations guide people, processes, and structures from a current state to a desired future state while maintaining operational stability and employee well-being. it recognises that change is inherently emotional and often disruptive indeed, more than 70 % of healthcare change initiatives fail because leaders underestimate the human and communication challenges involved. classic frameworks portray change as a phased journey: lewin’s model of unfreezing, changing, and refreezing emphasises the need to loosen existing routines, introduce new behaviors, and stabilize the gains (frantz, 2004), whereas kotter’s eight-step process highlights urgency creation, coalition building, vision communication, and institutionalization of new practices (kotter, 1996). contemporary scholars extend these ideas by viewing organizations as open systems entities constantly shaped by internal dynamics and external uncertainty so effective change requires unity of purpose, broad involvement, transparent communication, and adaptive leadership (lawrence et al., 2014). change management succeeds when leaders couple high-quality decision-making with intensive, two-way communication that cascades from executives to frontline staff and back again (yap et al., 2016). such dialogue helps employees process emotions, innovate, and rebound from initial resistance (norton, 2015). strategic tools including organic and interactionist models provide american journal of business management, economics and banking volume 37 june2025 p a g e | 197 www.americanjournal.org diagnostic lenses for identifying barriers and guiding restructure without sacrificing flexibility (bausch, 2002). timing also matters: shifts often unfold gradually, shaping attitudes before, during, and after pivotal events; leaders who anticipate these temporal patterns can align resources and maintain momentum. ultimately, effective change management blends structured methodologies with empathetic leadership, ensuring responsibility, clear goals, and well-defined boundaries while steering organizations toward sustainable improvement (naranjo-gil, 2015). research gap empirical research consistently affirms the pivotal role of strategic communication in facilitating effective change management across various organizational contexts. scholars have approached this relationship from multiple dimensions, emphasizing the significance of communication transparency, channel selection, leadership style, and organizational culture. the following empirical studies provide valuable insights that directly inform the present investigation of hospitality organizations in rivers state. li et al. (2021) conducted a quantitative study during the covid-19 pandemic, examining how transparent internal communication impacts employee coping during organizational change. drawing from the transactional theory of stress and coping, the study analyzed data from 490 full-time u.s. employees and found that transparent communication practices reduce uncertainty, foster stronger employee–organization relationships, and promote problem-focused coping behaviors. these findings underscore the role of internal communication as a strategic enabler of psychological adjustment during periods of disruption. for the hospitality industry—characterized by high volatility and frequent structural adjustments—such transparency is essential not only for disseminating information but also for building trust and supporting employee adaptation to change. complementing this view, rita-men et al. (2022) explored how the use of communication channels— mass-mediated and interpersonal—affects employees’ affective commitment to organizational change. based on a survey of 1,034 employees undergoing planned change, the study found that channel frequency and transparency significantly influence employees’ sense of uncertainty and emotional alignment with change initiatives. notably, interpersonal channels (e.g., direct supervisor communication) had a stronger effect on perceived transparency and commitment than mediated channels (e.g., newsletters, emails). this finding is particularly relevant to hospitality settings, where face-to-face interactions and real-time feedback mechanisms are prevalent and culturally significant. it highlights the need for channel appropriateness in communication planning, aligning with media richness theory, which suggests that richer communication modes are more effective in emotionally charged contexts. in other related studies (bagga et al., 2023; jimmieson et al., 2013), using partial least squares structural equation modeling (pls-sem), the authors found that transformational leadership significantly influences change outcomes and that organizational culture partially mediates this relationship. although the study is situated in it-based virtual teams, its implications resonate with the hospitality sector’s increasing reliance on technology and remote coordination. the results suggest that leadership communication—especially when it is visionary, consistent, and culturally aligned—can shape an internal environment conducive to change readiness. this complements the view that strategic communication is not merely transactional but also symbolic, reinforcing values, shared purpose, and behavioral expectations. however, while these studies contribute to a growing body of evidence on strategic communication during organizational change, limited empirical work has been conducted in american journal of business management, economics and banking volume 37 june2025 p a g e | 198 www.americanjournal.org the context of the hospitality industry in sub-saharan africa, where socio-cultural, economic, and infrastructural factors may shape communication dynamics differently. this study therefore extends the literature by applying these findings to hospitality firms in rivers state—offering context-sensitive insights into how strategic communication practices affect change management outcomes in a developing country context. conceptual framework the study variables were decomposed as illustrated in fig 1 below figure 1: conceptual framework of study variable methodology this study employed a quantitative research approach using a descriptive cross-sectional survey design to investigate the relationship between strategic communication and change management in selected hospitality firms in rivers state, nigeria. the study population consisted of industry players, including hotels and travel-related businesses, operating in urban centers within rivers state. the population was estimated at 310. a multi-stage sampling technique was adopted for this research. initially, purposive sampling was used to select prominent and operationally active hospitality firms. subsequently, employees within these organizations were stratified into categories such as managerial, supervisory, and frontline staff. simple random sampling was then employed to select participants from each stratum, ensuring adequate representation across all organizational levels. the sample size for the study was determined using krejcie and morgan’s sample size determination table, which provided a statistically valid number of 173 respondents based on the estimated population size. communication clarity ⚫ message simplicity and precision ⚫ unambiguous use of language ⚫ clear explanation of change objectives & expectations ⚫ minimization of technical jargon ⚫ consistency between verbal and written messages communication timeliness ⚫ prompt dissemination of information about change ⚫ timely updates at each stage of the change process ⚫ frequency of communication during change initiatives ⚫ responsiveness to questions or feedback ⚫ early warning of impending organizational changes communication channel ⚫ use of appropriate platforms (e.g. email, memo, etc.) ⚫ channel diversity and accessibility ⚫ appropriateness of channel to message complexity ⚫ employee preference in channel selection ⚫ consistency of information across channels employee involvement ⚫ opportunities for employee input and feedback ⚫ inclusion in decision-making processes ⚫ active participation in planning or executing change ⚫ recognition of employee concerns and contributions ⚫ level of engagement in communication processes s t r a t e g ic c o m m u n ic a t io n change management ⚫ employee readiness for change ⚫ reduction in resistance to change ⚫ successful implementation of change initiatives ⚫ alignment of employee behavior with new goals ⚫ organizational adaptability and resilience ⚫ sustained employee morale and productivity during change ⚫ effective leadership in guiding transitions american journal of business management, economics and banking volume 37 june2025 p a g e | 199 www.americanjournal.org data were gathered using a structured questionnaire developed from validated instruments in previous studies (jimmieson et al., 2013; kitchen & daly, 2002; rita-men et al., 2022). responses were recorded on a 5-point likert scale. prior to the main data collection, a pilot test was conducted with 20 employees from a similar hospitality firm not included in the final sample. the validity of the research instrument was confirmed through expert reviews by academics specializing in organizational communication and change management, ensuring strong content and construct validity. the reliability of the instrument was assessed using cronbach’s alpha. specifically, communication clarity yielded an alpha of 0.82, communication timeliness 0.79, communication channels 0.84, employee involvement 0.81, and change management 0.86. these values exceeded the minimum threshold of 0.70, indicating that the instrument was suitable for the main study. data collection took place over a period of four weeks and involved both physical distribution of questionnaires and digital dissemination via email and messaging platforms. ethical standards were strictly observed throughout the study. informed consent was obtained from all participants, and they were assured of confidentiality and the voluntary nature of their participation. data were collected, stored, and analyzed solely for academic purposes. upon completion of data collection, the responses were coded and analyzed using the statistical package for the social sciences (spss) version 26. descriptive statistics, including means and standard deviations, were used to summarize the demographic characteristics and general trends in the responses. pearson’s product-moment correlation was employed to examine the strength and direction of the relationship between strategic communication and change management. furthermore, multiple regression analysis was conducted to determine the extent to which dimensions of strategic communication predicted employee responses to organizational change. all statistical tests were conducted at the 0.05 level of significance. results descriptive statistics out of the 173 questionnaires distributed, 142 valid responses were obtained and analyzed, representing business owners, senior managers, and supervisors from hospitality organizations across rivers state, nigeria. the gender distribution showed 58.5% male and 41.5% female respondents. regarding firm size, 52% of participants were from small-scale firms, 34% from medium-scale, and 14% from large-scale enterprises. in terms of industry experience, 36% had less than five years while 64% had more than five years of experience. business category analysis revealed that respondents were drawn from a range of sectors, with 31.0% working in hotels, 33.1% in restaurants and bars, 17.6% in nightclubs, 13.4% in spa and wellness centers, and 4.9% in events management firms. table 1: descriptive statistics of study variables variable item statement mean sd communication clarity cc1: messages about change are easy to understand. 4.20 0.61 cc2: change goals are clearly explained. 4.12 0.67 cc3: jargon is avoided in official communication. 4.03 0.64 cc4: verbal and written messages are consistent. 4.10 0.59 cc5: language used is unambiguous. 4.15 0.58 american journal of business management, economics and banking volume 37 june2025 p a g e | 200 www.americanjournal.org variable item statement mean sd communication timeliness ct1: we are informed promptly about changes. 4.18 0.60 ct2: communication is frequent during change. 4.09 0.63 ct3: updates come at each stage of the change. 4.05 0.65 ct4: management responds quickly to inquiries. 4.11 0.56 ct5: we receive early notifications of changes. 4.07 0.62 communication channels ch1: the right channels are used to relay change info. 4.14 0.61 ch2: i can easily access information on change. 4.06 0.66 ch3: channels match the complexity of the message. 4.01 0.64 ch4: my channel preferences are considered. 3.98 0.70 ch5: messages are consistent across all platforms. 4.00 0.68 employee involvement ei1: staff are involved in change planning. 3.95 0.72 ei2: my opinions are considered during change. 3.88 0.76 ei3: staff actively contribute to change success. 4.02 0.63 ei4: concerns are addressed openly. 3.91 0.67 ei5: staff are recognized for their input. 3.85 0.74 change management cm1: employees are ready for change. 4.17 0.57 cm2: there is minimal resistance to change. 4.01 0.64 cm3: change initiatives are successfully implemented. 4.10 0.59 cm4: staff behavior aligns with new directions. 4.05 0.60 cm5: the organization adapts quickly. 4.13 0.58 cm6: productivity remains stable during change. 4.00 0.61 cm7: leaders guide change effectively. 4.16 0.54 criterion mean = 3.0 source: field survey computation, 2025 these results reflect a generally positive perception of strategic communication practices and their role in enhancing organizational change outcomes across the sampled hospitality firms. correlation analysis pearson correlation coefficients revealed significant and positive relationships between all dimensions of strategic communication and change management outcomes. table 2: pearson correlation between strategic communication and change management variables change management communication clarity r = 0.531**, p < 0.00 communication timeliness r = 0.574**, p < 0.00 communication channels r = 0.495**, p < 0.02 employee involvement r = 0.603**, p < 0.00 note: *n = 142; *correlation is significant at the 0.01 level (1-tailed) source: ibm spss version 26.0 output, 2025 american journal of business management, economics and banking volume 37 june2025 p a g e | 201 www.americanjournal.org these findings suggest that better clarity, timing, choice of channels, and employee participation in communication positively influence the success of change management initiatives. regression analysis multiple regression analysis was performed to assess the extent to which dimensions of strategic communication predict successful change management outcomes. model summary r² = 0.51, f(4,137) = 35.47, p < 0.001 predictor β t p-value communication clarity 0.212 3.06 0.003 communication timeliness 0.255 3.88 0.000 communication channels 0.186 2.57 0.011 employee involvement 0.318 4.62 0.000 source: ibm spss version 26.0 output, 2025 the regression model indicates that all four dimensions of strategic communication significantly predict change management effectiveness, with employee involvement exerting the strongest influence. summary of findings the study investigated the relationship between strategic communication and change management in selected hospitality firms in rivers state, nigeria. findings indicated that communication clarity was significantly correlated with successful change implementation (r = 0.531, p < 0.01), with regression results (β = 0.212, p = 0.003) suggesting its predictive effect on employee readiness and reduced resistance, consistent with earlier studies (jimmieson et al., 2013) emphasizing clarity as a means of reducing uncertainty. communication timeliness also demonstrated a strong influence (r = 0.574, p < 0.01; β = 0.255, p < 0.001), underscoring the value of prompt and regular updates throughout the change process, aligning with findings by li et al. (2021) on crisis communication and employee adaptability. the analysis further revealed that communication channels had a positive correlation with change management (r = 0.495, p < 0.01; β = 0.186, p = 0.011), suggesting that using consistent and appropriate platforms facilitates better message reception and employee alignment—a conclusion supported by rita-men et al. (2022). notably, employee involvement emerged as the strongest predictor of change success (r = 0.603; β = 0.318, p < 0.001), affirming that active engagement and participatory communication significantly enhance employee support for change, echoing the emphasis placed on inclusive practices in organizational culture by bagga et al. (2023). altogether, the results affirm that strategic communication is a powerful enabler of effective change management, with all four dimensions contributing to improved readiness, lowered resistance, and stronger alignment with evolving organizational goals. american journal of business management, economics and banking volume 37 june2025 p a g e | 202 www.americanjournal.org implication of the study the findings of this study carry significant practical and theoretical implications for organizational leaders, change managers, communication professionals, and scholars interested in the intersection of internal communication and organizational change. from a practical standpoint, the study highlights the central role of strategic communication as a driver of successful change management within the hospitality sector. it demonstrates that clear, timely, and channel-appropriate communication— coupled with active employee involvement—can enhance employee readiness, reduce resistance, and foster organizational adaptability. this implies that hospitality firms, especially in dynamic and competitive markets like rivers state, must integrate communication strategies into the core of their change management plans. for leadership and management practitioners, the study affirms that communication is not just a support function but a strategic tool that can shape outcomes of transformation initiatives. on a theoretical level, the study contributes to the growing body of literature that positions communication clarity, timeliness, and participatory practices as not only antecedents of successful change but also as mechanisms for sustaining employee engagement during transitions. conclusion this study examined the relationship between strategic communication and change management in selected hospitality firms in rivers state, nigeria. drawing on empirical data, it established that dimensions of strategic communication—namely communication clarity, timeliness, appropriate channel use, and employee involvement—positively and significantly influence the success of organizational change efforts. the results showed that when organizations communicate change processes with clarity, keep employees informed in a timely manner, use appropriate communication channels, and actively involve employees in the process, there is a notable improvement in employee readiness and alignment with organizational objectives. the study thus reinforces the idea that communication is a powerful organizational capability that can either support or hinder the achievement of change goals, depending on how it is designed and implemented. in sum, the study concludes that for hospitality firms navigating frequent and sometimes complex changes, the strategic management of internal communication can significantly enhance change outcomes, minimize disruptions, and strengthen organizational cohesion. recommendations based on the findings of the study, several recommendations are offered to practitioners and policymakers in the hospitality industry. firstly, hospitality firms should invest in building a structured internal communication framework that emphasizes clarity of message content, timely updates, and consistent use of communication channels tailored to the needs and preferences of employees. management teams should also prioritize feedback mechanisms that enable two-way communication, ensuring that employee voices are heard and integrated into the change process. secondly, firms should adopt a participatory approach to change by involving employees early in the planning and implementation stages. this involvement fosters a sense of ownership and commitment, reducing resistance and improving change receptiveness. furthermore, training programs on communication best practices and change readiness should be conducted for both managers and employees to enhance their ability to engage with organizational change in constructive ways. lastly, organizational policies should reflect a long-term commitment to transparent communication and inclusive decision-making as part of the organizational culture. american journal of business management, economics and banking volume 37 june2025 p a g e | 203 www.americanjournal.org suggestions for future studies while this study has provided valuable insights into the role of strategic communication in change management, several areas remain open for future research. future studies could extend this research to other service sectors beyond hospitality to assess whether the relationships observed in this study hold true in different organizational contexts. given the increasing use of digital platforms for internal communication, another avenue worth exploring is the effectiveness of various digital communication tools in supporting organizational change. it would also be beneficial for future researchers to explore the mediating or moderating roles of organizational culture, leadership style, or employee trust 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(2015). selection, optimization, and compensation strategies: interactive effects on daily work engagement. journal of vocational behavior, 87, 101–107. american journal of business management, economics and banking issn (e): 2832-8078 volume 37, june 2025 p a g e | 78 www.americanjournal.org issues of improving the tax strategy in uzbekistan based on the experience of foreign countries jumaev shukhrat independent researcher, tashkent state university of economics (phd) sh.jumaev@tsue.uz https://orcid.org/0009-0003-4452-771x a b s t r a c t k e y w o r d s the development and implementation of a new tax strategy in uzbekistan is of fundamental importance for ensuring the country's sustainable economic development, improving the business environment, simplifying tax administration, and strengthening social justice. this process will ensure that the tax system responds to modern challenges and will serve to increase the country's economic potential in the coming years. introduction the strategy should include a set of measures aimed at creating a favorable business environment, creating equal conditions for doing business, simplifying and improving the tax administration system, carrying out structural transformations of tax authorities, as well as developing the tax service in 20252030. therefore, this article, along with studying foreign experience in tax policy, analyzes the content of tax policy, its strategy and tactics, as well as the priority directions of uzbekistan's current tax policy, and provides conclusions and proposals. analysis of the literature scientific research related to the development of state tax policy and the strategic and tactical directions of its implementation has a long history. special subdivisions were created for the effective use of monetary funds, and issues of organizing their activities, replenishing the state treasury, and its control were widely discussed. several scientists have conducted scientific research on these issues. in particular, foreign economists a. smith, d. ricardo, w. petty, k. mcconnell, g. mankiw, n. turgenev, v. tverdokhlebov, v. glukhov, l. goncharenko, d. tikhonov, d. chernik, t. yutkin. in particular, russian scientists n.turgenev, v.tverdokhlebov conducted scientific research on the mechanisms of organizing tax policy related to the determination of tax obligations in the provision of funds to the state treasury, while d.chernik, t.yutkin conducted scientific research on the strategy, tactics of tax policy, and the state's position in the implementation of tax policy directions. american journal of business management, economics and banking volume 37 june2025 p a g e | 79 www.americanjournal.org in the scientific works of uzbek economists e.gadoev, t.malikov, o.olimjonov, kh.sobirov, sh.toshmatov, o.abdurakhmanov, b.toshmurodova, n.khaydarov, a.khairutdinov, k.yakhyayev, n.kuzieva, the further improvement of tax administration, its theoretical and scientific-methodological aspects were studied. if in the scientific research of one of the scientists of our country, e.gadoev, the directions of tax policy for each type of tax are scientifically and methodologically revealed, then in the research work of s.khudoykulov, the importance of forecasting revenues in the formation of budget revenues is substantiated. analysis and discussion of results: today, the following shortcomings and problems remain in the tax system, hindering the full use of the potential of tax authorities, increasing business activity, and supporting entrepreneurship. including incomplete compliance of the services provided to taxpayers with modern requirements, including the lack of a unified standard for servicing taxpayers, the absence of a system for assessing and monitoring the quality of tax services and consultations provided; the fragmented and inconsistent work of tax authorities to combat the widespread practice of concealing the volume of income by taxpayers, using tax evasion schemes, which may lead to a decrease in tax discipline, the preservation of the scale of the shadow economy, and the deterioration of business conditions for conscientious entrepreneurs; in parallel with the introduction of modern methods of management and human resource development, the anti-corruption compliance control policy has not been strengthened, and decent working conditions have not been created for employees, especially in the structural units of districts and cities; the application of tax control tools not only to unscrupulous taxpayers, the absence of a system of incentives for transitioning to the category of conscientious taxpayers. today, the processes of globalization, economic integration, and increasing competition are prompting states to adopt modern, effective, and fair approaches to tax policy. tax reforms being implemented in the republic of uzbekistan are also inextricably linked with these processes. when modernizing tax policy, it is important not only to be limited to national characteristics, but also to study and implement the best practices of developed and developing countries. in particular, the experience of foreign countries including neighboring states such as russia, kazakhstan, and georgia can serve as an example in improving uzbekistan's tax policy. deep analysis of foreign experience in such areas as optimization of the tax burden, acceleration of digitalization, simplification of tax administration, and adaptation to the national model will create a solid foundation for sustainable economic growth in the future. the tax policy of the republic of georgia is considered exemplary for most countries. its strategic approach is the formation of a simple, transparent, and attractive tax system for investors. the goals of the tax policy strategy of the republic of georgia are: ensuring economic growth and stimulating the private sector; attracting foreign investment; simplification and automation of the tax system; creating trusting relationships with taxpayers; american journal of business management, economics and banking volume 37 june2025 p a g e | 80 www.americanjournal.org the main reforms are as follows. the estonian model corporate tax tax is levied only upon payment of dividends. a small number of types of taxes there are 6 main types of taxes in total. digital tax service e-filing, e-invoice, online registers. a favorable environment for entrepreneurship special regimes for small businesses, transparency and automation a lack of corruption, transparent mechanisms. as a result of the reforms implemented high positions in the doing business rating, a favorable environment for foreign investors, a very low level of corruption. also, a number of problems remain relevant. these are the still high share of informal labor, problems remain in the adaptation of small businesses to the digital system. georgia's tax policy is built on the principle of "minimal types of taxes, low rates, maximum transparency." this policy is a liberal approach that serves as a model for small countries and creates a competitive environment for investors. the goals of the tax policy strategy of the republic of kazakhstan are to stimulate economic growth, fiscal stability, support the innovative and digital economy, and strengthen investment attractiveness. the main directions of tax policy are the simplification of the tax system, revision of the tax burden, digitalization (platforms such as electronic invoices, online cash registers, e-salyk business), equality and transparency, and the introduction of environmental taxes to support the "green economy." as a result of the implementation of tax policy, it is expected to increase tax discipline, reduce the shadow economy, increase state budget revenues, stimulate entrepreneurship, and increase investor confidence. also, in the implementation of tax policy, such problems as the high tax burden in some areas, the presence of bureaucracy in the process of vat refunds, an ambiguous tax policy for small businesses, and the difficulty in assessing the effectiveness of certain tax benefits remain relevant. in the russian federation, tax policy is the main pillar of state financial policy. the country is implementing a comprehensive tax strategy to achieve fiscal stability, ensure economic growth, and improve the investment climate. the main goals of russian tax policy are: ensuring budget stability a consistent increase in tax revenues in accordance with government expenditures. rational distribution of the tax burden increasing income through indirect taxes (vat, excise tax). stimulation of economic activity the introduction of preferential tax regimes in certain sectors and regions. digitalization of tax administration strengthening control through electronic cash registers, online reporting, big data, and ai tax administration and digitalization the federal tax service of russia (fns) has expanded its system of monitoring taxpayers through digitalization and modern control tools. the following mechanisms are a key part of this process: online cash desks: mandatory for all trading entities electronic reports: automated data provision marking and identification: real-time tracking of goods movement intelligent audit: risk analysis and verification through artificial intelligence at the same time, the following serious problems remain in the implementation of the strategy. high tax burden there are excessive taxes and excise duties for certain sectors. american journal of business management, economics and banking volume 37 june2025 p a g e | 81 www.americanjournal.org the complexity of legislation frequent changes and a large number of regulatory documents restrict entrepreneurship. the risk of competitiveness bureaucracy and corruption in tax transactions can become an obstacle for some investors. the impact of international sanctions restrictions on export and financial relations negatively affect tax revenues. the tax policy of the russian federation is based on complex, but strategically well-thought-out fiscal mechanisms. through digitalization, tax monitoring, and active control, budget stability is being achieved. however, the expansion of preferential tax regimes for small and medium-sized businesses, the simplification of legislation, and the balancing of the tax burden are important prospects in this area. based on the experience of the above-mentioned foreign countries, it is proposed that the main tasks of the tax policy of the republic of uzbekistan consist of: figure 1. main directions of the newly proposed strategy for the development of tax administration and tax authorities from the data of figure 1, it can be seen that in the proposed tax strategy, the main directions of the strategy are defined as providing services to taxpayers, creating a healthy environment among taxpayers, equal distribution of the tax burden, improving the skills of tax officials and combating corruption in the system, and further development of the process of digitalization of the tax system. based on the foregoing, it is proposed that the main tasks of the newly adopted tax policy be: • changing relations with taxpayers, raising the provision of services to a new level, a new approach to providing services and tax consulting to taxpayers, forming a positive image of tax authorities; routes implementation of a new approach to taxpayer services and tax consulting based on the "tax officer-assistant" principle improvement of the "compliance risk management" (srm) system in tax risk management, ensuring equal distribution of the tax burden and forming a healthy competitive environment among business entities implementation of a modern system for improving the qualifications of tax authorities, increasing employee motivation for the effective implementation of strategic goals and objectives, increasing their attitude towards corruption forming an uncompromising attitude continuation of the processes of digitalization of the tax system and transformation of internal control services into a modern structure, as well as creation of additional conveniences for taxpayers in fulfilling tax obligations, further optimization of the introduced mechanisms. american journal of business management, economics and banking volume 37 june2025 p a g e | 82 www.americanjournal.org • elimination of conditions and offenses that contribute to the shadow economy in carrying out activities, implementation of measures for the timely disclosure of tax evasion schemes, reduction of costs associated with ineffective methods of tax administration, further optimization of the structure of tax authorities by centralizing certain functions, conducting sectoral research and eliminating contradictions in legislation in order to increase the efficiency of tax administration; • strengthening compliance control, forming in employees a sense of intolerance to manifestations of corruption and patronage over them, developing the personnel potential of tax officials, as well as continuing work to increase the transparency of service processes. • digitalization of tax authorities' activities, automation of business processes, reduction of business organization costs, development of a competitive environment and creation of favorable conditions for conducting business activities, stimulation of honest entrepreneurs' work, formation of convenient, clear, as well as simple elements of fulfilling tax obligations, continuation of implementation of measures to introduce a procedure for making automated decisions based on modern technologies. in this regard, within the structure of the tax committee, a separate structure specializing in the provision of free services and tax consultations to taxpayers, as well as a centralized and prompt response to all types of appeals, is being created. one of the urgent tasks today is the creation of a new system for providing tax services to taxpayers based on unified standards, providing consultations, as well as assessing and monitoring the quality of services. it is also necessary to introduce a system for assessing the activities of tax officials dealing with appeals (feedback), implement tax services based on the principle of extraterritoriality, and take measures to minimize the "human factor" in the process of providing services. conducting dialogues with the participation of business entities by tax service bodies and taking measures to eliminate problems arising on tax issues, as well as submitting proposals for solving systemic problems, requires the introduction of additional information necessary for the consideration of applications for reimbursement of value-added tax amounts into the electronic exchange system with digitization. although the types of taxes have decreased in recent years, today 66,976 treasury accounts have been opened for the payment of existing tax payments. this, in turn, creates inconvenience for taxpayers. during 2022, 27,571 business entities incorrectly paid taxes in the amount of 209 billion soums in 77,656 cases. (in this case, incorrectly paid due to the choice of another type of tax, payment, or payment of another territory) therefore, it is proposed to introduce the practice of paying taxes and fees by taxpayers through a single treasury personal account. as a result of opening a single tax account: • facilitates the fulfillment of tax obligations; • multiple tax payments are not paid simultaneously; • there will be no simultaneous tax arrears on one type of tax and no overpayments on another type of tax; • as a result of the establishment of a single payment deadline, the payment calendar will be simplified and it will be possible to pay all taxes at once with one payment deadline; • allows quick refund of the vat amount on the negative balance. also, in this strategy: american journal of business management, economics and banking volume 37 june2025 p a g e | 83 www.americanjournal.org improvement of the practice of taxation of income of individuals engaged in entrepreneurial activity; optimization of taxation procedures; consideration of the issue of the phased introduction of a single mechanism for "taxation of real estate" instead of property and land taxes of individuals. determination of the proportionality of tax control measures to the level of tax risk of taxpayers, in particular, elimination of shortcomings of taxpayers with a medium level of tax risk by explaining them without applying penalties; improvement of the qualifications of employees carrying out tax audits and increasing the number of highly qualified employees carrying out tax audits; establishment of a system for quarterly informing the public about the work carried out, with the approval of annual plans for assessing, monitoring, and eliminating tax risks by industry; training of qualified specialists in the system of taxation of individuals with high incomes; mandatory registration of contracts concluded by legal entities with tax authorities; improvement of data exchange between tax authorities and banks; determination of liability measures for the suspension of services provided to business entities during the maintenance of online cash registers and virtual cash registers. organization of an experimental internship site for the formation of skills in using modern tax administration tools; development of personnel management policy on record keeping; implementation of personnel policy aimed at ensuring gender equality in tax authorities; formation of a list of positions in tax authorities with high corruption risks and development of a procedure for their systematic monitoring; introduction of a mechanism for the rotation of employees of tax authorities based on specific criteria; creation of decent conditions for servicing taxpayers; optimization of the number of district (city) tax inspectorates of certain territories based on the effectiveness of their activities; phased creation of inter-district tax inspectorates; attracting highly qualified specialists to the tax authorities; formation of a personnel reserve for individual segments of employees of tax authorities; development of the concept of corporate culture in tax authorities; study of public opinion on cases of corruption in the work of employees of tax authorities; the introduction of a rating system for evaluating and incentivizing the activities of employees of tax authorities is proposed. by implementing the tasks defined in the proposed strategy, it is planned to achieve the following indicators in the development of tax administration and tax authorities of the republic of uzbekistan by 2030: firstly, ensuring macroeconomic stability; secondly, increasing the indicator of voluntary fulfillment of tax obligations by taxpayers to 97 percent through modernization and expansion of service channels for the needs of taxpayers, improvement of awareness of the rights and obligations of taxpayers, improvement of training processes, simplification of reporting, adjustment and payment processes; thirdly, through effective management of tax arrears, a phased reduction of the share of tax arrears in tax revenues accumulated in the reporting year to 3.8 percent by 2030; american journal of business management, economics and banking volume 37 june2025 p a g e | 84 www.americanjournal.org fourthly, ensuring close interaction with taxpayers contributes to the establishment of trusting relationships between tax authorities and taxpayers; fifthly, maintaining the appropriate level of staffing in places of significant contact with taxpayers stimulates the provision of high-quality services to taxpayers; sixth, business process reengineering, the introduction of an automated risk management system, and the generation of reports by tax authorities will reduce the time spent by taxpayers on paying taxes. in conclusion, in the process of forming and implementing a tax policy strategy in uzbekistan, a deep analysis of the experience of foreign countries and the adaptation of optimal elements to national conditions is of great importance. the practical experience of developed and neighboring countries provides uzbekistan with important lessons and directions in optimizing the tax burden, creating a favorable business environment, implementing digital tax administration, and ensuring transparency in the tax system. the possibility of creating a stable, inclusive, and innovative tax system in uzbekistan will increase not through the direct transfer of foreign models, but through the integration of their effective aspects in accordance with national economic, legal, and institutional characteristics. this, in turn, will serve to accelerate economic growth in the country, increase investment attractiveness, and ensure budget stability. references 1. лях о.а. региональная и налоговая политика россии на современном этапе / о.а. лях, a.m. гринкевич // известия томского политехнического университета. – 2008. – т. 312. – № 6. – с. 16-18. 2. мельникова н.п. возможности налоговой политики государства по стимулированию инновационного развития экономики / н.п. мельникова, m.р. пинская // финансы и кредит. – 2010. – №43 (427). – с. 48-52. 3. налоговая политика государства: учебник и практикум для вузов / н.и. малис [идр.]; под редакцией н.и. малис. – 2-е изд., перераб. и доп. – м.: издательство юрайт, 2022. — 361 с. 4. налоговая политика. теория и практика: учебник для магистрантов, обучающихся по специальностям «финансы и кредит», «бухгалтерский учет, анализ и аудит», «мировая экономика» / и.а. майбуров, м.д. абрамов, г.а. агарков [и др.]; под редакцией и.а. майбурова. – м.: юнити-дана, 2017. – 518 c. 5. жумаев ш. (2024) ўзбекистон республикасида солиқ маъмурчилиги ва солиқ тизими стратегиясини такомиллаштириш масалалари. // экономика и социум. №4-1 (119). 6. жумаев, ш. (2024). ўзбекистон республикасида солиқ маъмурчилигини такомиллаштириш. iqtisodiy taraqqiyot va tahlil, 2(4), 368–374. https://doi.org/10.60078/2992-877x-2024-vol2-iss4pp368-374 7. жумаев, ш. (2023). йирик солиқ тўловчилар солиқ маъмурчилигини такомиллаштиришнинг ўзига хос хусусиятлари. iqtisodiy taraqqiyot va tahlil, 1(1), 131–136. 8. jumaev s. (2024) on improving the methodology of tax administration of large taxpayers in the republic of uzbekistan //gospodarka i innowacje. – 2024. – т. 48. – с. 330-336. 9. жумаев, ш. “йирик солиқ тўловчилар солиқ маъмурчилигини такомиллаштиришнинг ўзига хос хусусиятлари”. iqtisodiy taraqqiyot va tahlil, vol. 1, no. 1, may 2023, pp. 131-6, https://eitt.uz/index.php/eitt/article/view/20. american journal of business management, economics and banking volume 37 june2025 p a g e | 85 www.americanjournal.org 10. жумаев, ш. 2024. ўзбекистонда республикасида солиқ тўловчиларга хизмат кўрсатиш тизимини янада такомиллаштиришга масалалари. страховой рынок узбекистана. 1, 7 (апр. 2024), 68–69. 11. o‘zbekiston respublikasi byudjet daromadlarida yirik soliq to‘lovchilarning roli va ahamiyati. (2024). scientific journal of actuarial finance and accounting, 4(11), 3238. https://doi.org/10.55439/afa/vol4_iss11/767 12. jumaev shuhrat. (2024). on the further development of service to taxpayers in the republic of uzbekistan. procedia on economic scientific research, 10(1), 147–151. https://doi.org/10.55439/afa/vol4_iss11/767 american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 135 www.americanjournal.org economic and practical aspects of the retail payment system of commercial banks nomozov rovshan ergashkulovich magister of banking and finance academy e-mail: rovshannomozov8@gmail.com orcid:0009-0003-4329-9196 a b s t r a c t k e y w o r d s this article analyzes the economic essence and theoretical foundations of the retail payment system in commercial banks. retail payments, as a key component of financial transactions between individuals, businesses, and banks, play a crucial role in monetary circulation, financial stability, and improving the quality of banking services. the article explores core concepts, functions, and the role of the retail payment system in a market economy, along with theoretical models drawn from international experiences. the author also proposes recommendations for improving retail payment services within the banking system of uzbekistan. banking, retail payments, payment system, money circulation, banking services. introduction as a result of the widespread use of digital financial instruments and modern information technologies in the global economy, payment systems have become an integral part of the system of economic relations. in particular, the retail payment system, as one of the main links of the banking system, plays an important role in the implementation of daily payments of the population and business entities. in international practice, retail payments, as a rule, include small-scale, fast and large-scale payments between individuals [1]. commercial banks act as the main implementing entities in this process. they play an important role in shaping the retail payment infrastructure, providing convenient and safe financial services to customers, as well as ensuring competitiveness. through retail payment systems, commercial banks are also expanding financial services that serve to increase the level of access to banking services by the population [2]. uzbekistan has also undergone significant changes in recent years through the modernization of the retail payment system, the introduction of digital payment platforms, payments through mobile applications, and online banking services. the resolution of the president of the republic of uzbekistan no. pp-4848 dated september 23, 2020, sets out specific tasks for the development of the payment infrastructure[3]. at the same time, the central bank is also implementing a strategy for the development of the national payment system[4]. american journal of business management, economics and banking volume 35 april 2025 p a g e | 136 www.americanjournal.org this article analyzes the economic content, theoretical foundations, functions, and place of the retail payment system of commercial banks in a market economy. it also assesses the current situation in uzbekistan based on an analysis of international practices and puts forward practical proposals. literature review research on the economic content of retail payment systems and their importance in the banking system has been carried out on a large scale in recent decades. research in this area is mainly focused on such pressing issues as improving the efficiency of payment systems, introducing digital financial instruments, and expanding financial inclusion. first of all, reports presented by the european central bank analyze current trends in retail payment infrastructure, automated payment systems, as well as practical work such as sepa (single euro payments area). according to the ecb, retail payments not only stimulate economic activity, but also strengthen regional integration[1]. the world bank's global findex report focuses on the level of use of digital payments around the world, the imbalance in the use of banking services, and the issues of the population remaining outside financial services[2]. it notes that retail payments are the "starting point" for the digital economy. the theoretical works of economists such as n. g. mankiw (2020) and f. mishkin (2019) have extensively covered issues related to the economic efficiency, liquidity, security, and transaction costs of payment instruments and money circulation. they see payment systems as an important tool in optimizing interbank relations[5,6]. at the national level, the resolution of the president of the republic of uzbekistan no. pp-4848 sets out clear directions for the modernization of the payment infrastructure, and a separate task is to pay great attention to the expansion of digital services in commercial banks [3]. the central bank’s 2023 report also analyzes the role of national payment systems in retail payments and the level of service provision through modern mobile applications[4]. also, research by a. chakravorty (2003) on the competitive environment and the role of innovation in retail payment markets, focusing on issues of effective regulation and security for market participants, provides an opportunity to compare the experience of uzbekistan with international standards.[7] thus, the analysis of the available literature shows that retail payment systems not only stimulate economic activity, but also serve as the main foundation of digital financial infrastructure. in improving this system, it is important to harmonize both national and international experiences. analysis and results in recent years, uzbekistan has been implementing significant reforms in the digitalization of the banking system, including the expansion of retail payment services. retail payments are mainly made through mobile applications, internet banking, pos terminals and qr codes. this is increasing the level of access to financial services for individuals and small businesses. according to the central bank, the number of retail payments in the republic in 2023 will reach 1.7 billion, which is 2.3 times more than in 2020[8]. the share of national and private payment systems such as uzcard, humo, click, payme in this growth is increasing significantly. this indicates an increase in digital financial literacy among the population and the introduction of innovative solutions by commercial banks. table 1 american journal of business management, economics and banking volume 35 april 2025 p a g e | 137 www.americanjournal.org indicators of commercial banks in uzbekistan for main retail payment services (in thousands)1 type of service 2021 y. 2022 y. 2023 y. loans to individuals 150 180 210 plastic card users 500 600 750 internet banking users 200 250 300 mobile application users 150 220 280 the analysis of the table shows that the number of users of mobile applications and internet banking services has increased significantly during 2021–2023. these figures indicate that the demand for digital payment services is growing and that banks are meeting this demand. also, the level of use of plastic cards by the population reached 750 thousand in 2023, an increase of 50% compared to 2021. this serves to diversify sources of income for banks through payment commissions. practice shows that the development of the retail payment system not only facilitates payment processes, but also has a positive effect on reducing the informal economy, limiting cash circulation, and increasing tax revenues [9]. however, the analysis also shows that the geographical coverage of retail payment services in commercial banks is still limited, especially in rural areas, due to the insufficient development of infrastructure, which limits the use of information technologies. also, the low level of digital literacy and concerns about cybersecurity remain problems in this area. the results of research and analysis show that the interbank payment system is an infrastructure formed on the basis of engineering and information technologies that ensures the prompt, accurate and secure execution of settlements between commercial banks and other financial institutions. the forms of payments carried out through this system indicate that the composition, volume and payment discipline of money circulation in the national economy are being effectively organized. in uzbekistan, positive changes have been observed in the number and structure of transactions carried out through the interbank payment system in recent years. the following table provides information on non-cash settlement documents carried out through the interbank payment system. table 2 settlements made through the interbank payment system of uzbekistan2 (thousands, share in percent) payment method 2020y. 2021y. 2022y. 2023y. 2024y. number % number % number % number % number % memorial warrant 13 737 26 16 549 29 21 186 33 22 910 34 23 360 31 payment order 33 842 64 36 353 64 38 370 59 40 168 59 49 220 64 payment request 232 0 269 0 229 0 193 0 178 0 letter of credit 0,3 0 0,2 0 0,07 0 0,08 0 0,03 0 collection 4 833 9 3 882 7 5 079 8 5 079 7 3 714 5 total 52 647 100 57 054 100 64 865 100 68 353 100 76 474 100 1 it was compiled by the author based on the data of the statistical bulletin of the central bank. 2 it was compiled by the author based on the data of the statistical bulletin of the central bank. american journal of business management, economics and banking volume 35 april 2025 p a g e | 138 www.americanjournal.org the table shows that in 2020-2024, the number of settlements made through the payment system increased from 52,647 thousand to 76,474 thousand, which is an increase of 45 percent. this indicates an increase in the level of use of payment systems and indicates a growing demand for interbank transactions. in particular, the number of payments made through memorial orders, which was 13,737 thousand in 2020, reached 23,360 thousand in 2024. this is an increase of almost 70 percent. although their share in total payments was 34 percent in 2023, it decreased to 31 percent in 2024. this indicates that some intra-bank payment systems are being optimized. payment orders are the most widely used and are developing steadily. for example, this form accounted for 64 percent of total payments in 2020, and it retained the same share in 2024. this indicator indicates the importance of this type of payment as the main means of interbank transactions. while payments in the form of collection amounted to 4,833 thousand in 2020, accounting for 9 percent, in 2024 they decreased to 3,714 thousand, accounting for 5 percent. this indicates that the level of popularity of this form of operations is decreasing. in this case, it is necessary to develop more effective solutions in terms of the convenience and popularity of collection mechanisms. forms such as letters of credit and payment requests have remained statistically minimal over the years. for example, in 2024, the number of letters of credit was only 0.03 thousand, and payment requests were 178 thousand. the lack of development of this type of payment means indicates the need to increase their accessibility and awareness. in general, based on these analyses, it can be concluded that payment orders are currently in the leading position in the interbank payment system, the number of payments through memorial orders is increasing, but some forms in particular, collection and letters of credit are facing difficulties in becoming popular. this, in turn, shows the need to further diversify the banking system, introduce modern payment methods and implement targeted measures to improve customer literacy. in recent years, the banking system of uzbekistan has undergone major reforms in the introduction of digital services and the development of remote financial platforms. in particular, the number of users of remote banking services is increasing sharply from year to year, which clearly demonstrates the growing demand for and trust in digital finance. remote services allow bank customers to carry out various financial transactions without visiting the bank, the following table provides general information about this. table 3 number of users of remote banking services in uzbekistan 3 date total legal entities and individual entrepreneurs individuals 01.01.2020 y. 10 153 458 691 008 9 462 450 01.01.2021 y. 14 571 094 822 518 13 748 576 01.01.2022 y. 20 203 384 968 580 19 234 804 01.01.2024 y. 44 099 600 1 339 609 42 759 991 01.01.2025 y. 52 373 327 1 478 073 50 895 254 3 it was compiled by the author based on the data of the statistical bulletin of the central bank. american journal of business management, economics and banking volume 35 april 2025 p a g e | 139 www.americanjournal.org according to the table, as of january 1, 2020, the number of users of remote banking services was 10.1 million, while by the beginning of 2025 this figure had reached 52.3 million. that is, the number of users increased by 5.1 times during this period. this growth rate indicates that digital financial services have been widely introduced in uzbekistan, and digital communication between banks and clients has been activated. the results of the analysis show that individuals constitute the largest user group. in 2020, their number was 9.4 million, while in 2025 it reached 50.9 million. this is a 5.4-fold increase. the active involvement of individuals in remote services is primarily due to the popularization of mobile banking applications, internet banking and payment systems. growth is also observed in the group of legal entities and individual entrepreneurs. their number was 691 thousand in 2020, and in 2025 it will reach 1.47 million. this also means an almost two-fold increase. this indicates that the culture of using online banking services is growing among entrepreneurs. in conclusion, remote banking services are not only a means of increasing the efficiency of service provision for banks, but also an important driver in the digitalization process of the economy. further expansion of these services, especially by reaching underserved segments of the population in the regions, can further expand financial inclusion. at the same time, areas such as ensuring cybersecurity, increasing digital literacy, and strengthening the legal framework also remain priorities. conclusions and suggestions the conducted analysis shows that the effective operation of the retail payment system of commercial banks is of great importance in accelerating the circulation of money in the country's economy, expanding the use of financial services, and increasing the efficiency of banks' activities. the introduction of remote payment instruments, internet banking, mobile applications, and other digital solutions has significantly improved the level of access to financial services for the population and business entities. at the same time, the level of popularity of some forms of payment (letters of credit, collection, and payment orders) remains low, and the lack of well-developed infrastructure in the regions and the insufficient level of digital literacy remain relevant. in the interbank payment system, payment orders occupy a leading position, however, we believe that it is necessary to further expand the opportunities for the effective use of various forms. based on the above-mentioned analyses, studies and conclusions, we have developed the following proposals for the development of the retail payment system in commercial banks: 1. it is necessary to expand the digital infrastructure across regions. in particular, it is necessary to improve internet connectivity in remote and rural areas, expand the infrastructure of pos terminals and qr codes, and expand the opportunities for providing digital payment services to the population. 2. it is necessary to strengthen the promotion of payment forms among entities that have the status of legal entities. in particular, it is possible to encourage their use by informing the public about the advantages, security features and procedure for using forms such as letters of credit, collection and payment requests. 4. in order to strengthen the growth in the number of users of remote services, it is necessary to strengthen cooperation between the public and the private sector to increase digital literacy. in this regard, it is advisable to implement joint projects between the media, banks and educational american journal of business management, economics and banking volume 35 april 2025 p a g e | 140 www.americanjournal.org institutions. 5. it is necessary to increase the efficiency of settlements by diversifying and increasing the level of automation of the interbank payment system. in this regard, it is recommended to widely introduce automated clearing systems, real-time payment platforms, and intelligent monitoring tools. references 1. european central bank (2023). retail payments in the eu: developments and challenges. www.ecb.europa.eu 2. world bank (2022). global findex database 2021: financial inclusion, digital payments, and resilience. www.worldbank.org 3. resolution of the president of the republic of uzbekistan no. pp-4848. (september 23, 2020). on measures to digitize financial markets. www.lex.uz 4. central bank of the republic of uzbekistan (2023). strategy for the development of the national payment system for 2023–2025. www.cbu.uz 5. mankiw, n. g. (2020). principles of economics (9th ed.). cengage learning. 6. mishkin, f. s. (2019). the economics of money, banking, and financial markets (12th ed.). pearson education. 7. chakravorti, a. (2003). theory of credit card networks: a survey of the literature. review of network economics, vol. 2(2). www.rnejournal.com 8. central bank of the republic of uzbekistan (2024). analytical data on payment systems for 2023. www.cbu.uz 9. oecd (2022). digital payment systems and financial inclusion: regional impacts and policy responses. www.oecd.org 10. goyal, k.a., & joshi, v. (2012). a study of social and ethical issues in banking industry. international journal of economics and research, 3(2), 49–57. www.ijeronline.com 11. батоврин, а.в. (2010). частный банкинг и управление благосостоянием клиентов. москва: дело. 12. sharipov, f.s. (2021). priority areas for the development of retail banking services in uzbekistan. finance and banking, no. 1, 45–52. www.journal.finbank.uz 13. rozikov, m., & ergashev, b. (2020). ways to improve the efficiency of retail services in commercial banks. economics and innovative technologies, no. 4, 76–84. www.iqtisodiyot.uz 14. molyneux, p., & wilson, j.o.s. (2007). retail banking. cheltenham, uk: edward elgar publishing. www.e-elgar.com 15. central bank of uzbekistan. (2024). annual statistical bulletin. tashkent. retrieved from: www.cbu.uz http://www.ecb.europa.eu/ http://www.worldbank.org/ http://www.rnejournal.com/ http://www.oecd.org/ http://www.ijeronline.com/ http://www.e-elgar.com/ http://www.cbu.uz/ american journal of business management, economics and banking issn (e): 2832-8078 volume 35, april 2025 p a g e | 187 www.americanjournal.org role of dividend policy in capital market sherkuzieva nasiba abrorovna phd, associate professor of “corporate finance and securities” department, tashkent state university of economics, uzbekistan e-mail: n.sherkuziyeva@tsue.uz a b s t r a c t k e y w o r d s this article studies role of dividend policy in capital market. moreover, effects of dividend policy in capital market, dividend payout statistics for companies listed on the new york stock exchange (nyse) are analyzed in detail. scientific conclusions and recommendations are presented on the basis of analyses. dividend, dividend payout, dividend policy, stock, capital, capital market, securities. introduction the role of dividend policy in capital markets holds a pivotal position in shaping investor confidence, influencing stock prices, and guiding long-term investment strategies. firstly, dividend policy serves as a critical indicator of a company's financial health, as consistent dividend payments reflect management’s commitment to shareholder value. furthermore, stable or growing dividends signal corporate profitability, which is crucial for attracting long-term investors seeking reliable income streams. dividend announcements also impact market sentiment, as positive dividend news often leads to stock price appreciation, while dividend cuts may trigger negative reactions. moreover, dividend policy plays a significant role in the allocation of corporate earnings, balancing between reinvestment for growth and distribution to shareholders. in mature markets, dividend-paying companies tend to exhibit lower volatility, contributing to overall market stability. additionally, in emerging markets, a well-defined dividend policy can enhance transparency, reduce agency conflicts, and improve corporate governance practices. the signaling theory of dividends suggests that firms use dividend changes to convey information about future prospects, thereby influencing market expectations. tax considerations also interact with dividend policy, as investors' preferences for dividends versus capital gains affect their portfolio decisions. for institutional investors, dividend policies can serve as benchmarks for evaluating corporate performance, shaping investment portfolios accordingly. furthermore, dividend policies influence capital structure decisions, as retained earnings contribute to financing future projects without excessive reliance on external funding. overall, a sound dividend policy fosters investor trust, strengthens market efficiency, and enhances the attractiveness of capital markets by offering a predictable and steady return mechanism. therefore, dividend policy is not merely a distribution decision but a strategic tool for signaling stability, managing expectations, and sustaining market confidence. american journal of business management, economics and banking volume 35 april 2025 p a g e | 188 www.americanjournal.org literature review foreign scholars s. seo and j. lee have emphasized that internal factors influence a company's dividend policy. "paying dividends is a decision based on the company's expected cash flow and efficiency. changes in corporate governance, management, or ownership structure affect dividend payments" [1]. when making dividend payments in a company, it is certainly important to take into account both internal and external factors. the dividend policy of commercial banks is currently one of the issues that is widely paid attention to by economists in the field of corporate finance. in particular, "the lower the tax rates on dividends, the higher the dividend payments in companies" [2]. in this case, we can see that tax rates and the amount of dividend payments in commercial banks are inversely related. the team of authors led by z. sun stated that “free cash flow theory suggests that dividend payments help reduce agency costs of free cash flow and prevent managers from overinvesting. in stakeholder theory, dividend payments reflect the tension between shareholders and stakeholders” [3]. effective organization of dividend payments in a company serves to reduce tensions in conflicts of interest. “commercial banks, as issuers, increase the possibility of effective placement of additional shares through regular dividend payments to shareholders, thereby increasing the capitalization of banks. therefore, commercial banks should pay special attention to dividend policy” [4]. an increase in market capitalization, in turn, helps commercial banks to strengthen their position in the market and effectively implement their activities. according to s. elmirzaev and s. omonov, “the financial relationship between the enterprise and the owners regarding the distribution of profits, which is reflected in the dividend policy, is complex and multifaceted. the funds invested by the investor in the capital of the enterprise in the form of shares, shares, and shares actually give him the right to own the enterprise and, in turn, the right to participate in the distribution of profits received. this increases the importance of dividend policy. therefore, it is necessary to consider its components, starting from the economic essence of dividends and the nature of their occurrence” [5]. in order to effectively formulate a dividend policy in a company, it is necessary to fully understand the essence and importance of dividends. “when organizing roadshows for potential investors, it is also necessary to take into account the level of taxation in the country where potential investors operate, because if a potential investor pays high taxes on the expected dividend in the future, his interest in receiving income through shares will be low” [6]. the established directions in the tax policy of a country reflect the influence of external and internal factors on dividend policy. analysis and results the essence of dividend policy in capital markets lies in its multifaceted role as a strategic financial tool that profoundly influences investor behavior, corporate governance standards, and overall market efficiency, with each of these dimensions being interconnected and mutually reinforcing. a wellformulated dividend policy, on the one hand, serves as a crucial mechanism for distributing corporate earnings to shareholders, while on the other, it functions as a strategic signal of a firm's financial stability, long-term growth prospects, and management's confidence in future performance, thereby affecting investor sentiment and stock valuations. the significance of dividend policy becomes even more pronounced in capital markets, where information asymmetry between management and investors can create uncertainty, making dividend declarations a powerful communication channel that american journal of business management, economics and banking volume 35 april 2025 p a g e | 189 www.americanjournal.org bridges this gap and enhances transparency. moreover, dividend policy influences the allocation of corporate resources, as decisions to retain earnings or distribute them as dividends directly impact a company's capital structure, investment capacity, and debt-equity balance, which in turn shapes its risk profile and creditworthiness in the eyes of market participants. this complex relationship highlights how dividend policy serves as a balancing act between satisfying short-term shareholder expectations for income and ensuring long-term reinvestment for sustainable growth, especially in capital-intensive industries. furthermore, dividend policy acts as a governance tool that disciplines management by limiting the free cash flow available for discretionary spending, thereby reducing the likelihood of agency problems and misallocation of resources. in the context of emerging markets, where capital markets are often characterized by lower levels of investor protection and transparency, a stable and predictable dividend policy can enhance corporate reputation, attract foreign investment, and promote market confidence by demonstrating adherence to international best practices. additionally, tax considerations play an integral role in shaping dividend policy, as differences in taxation on dividends and capital gains can influence investor preferences and, by extension, the capital allocation decisions of firms seeking to optimize shareholder value. it is also essential to recognize that dividend policy is not a static construct but a dynamic element that evolves in response to macroeconomic conditions, industry trends, and regulatory frameworks, necessitating continuous adjustment to remain aligned with both market expectations and corporate objectives. in highly developed capital markets, the consistency and growth of dividends are often viewed as indicators of a firm's commitment to shareholder value maximization, while dividend cuts or omissions may be interpreted as red flags signaling potential financial distress or strategic realignment. the impact of dividend policy extends beyond the firm level, as aggregate dividend trends can shape the broader investment climate by influencing the flow of funds across asset classes and market segments. moreover, dividend policy decisions interact with capital market liquidity, as regular dividend distributions can incentivize long-term holding behavior among investors, thereby reducing speculative trading and fostering market stability. this intricate interplay between dividend policy and capital market dynamics underscores its pivotal role in shaping not only corporate valuation metrics such as price-to-earnings and dividend yield ratios but also in reinforcing investor confidence and contributing to the efficient functioning of capital markets. ultimately, the essence of dividend policy lies in its capacity to align the interests of diverse stakeholders—shareholders, management, regulators, and the broader market ecosystem—by providing a structured framework for distributing profits, signaling corporate strength, and facilitating informed investment decisions that drive capital market development and resilience in an increasingly complex global financial landscape. the role of dividend policy in capital markets is a subject of profound significance, as it embodies a complex interplay of financial strategy, investor expectations, corporate governance practices, and macroeconomic influences, each of which contributes to shaping the overall stability, efficiency, and attractiveness of the market. at its core, dividend policy serves as a key indicator of a firm’s financial health, signaling to investors the company’s ability to generate sustainable earnings and maintain consistent cash flows, which in turn influences stock valuation and market perception. when a company adopts a stable dividend policy, it demonstrates a long-term commitment to shareholder value, reinforcing confidence among investors who seek predictable returns as part of their investment strategy. this sense of reliability is particularly important in volatile markets, where uncertainty and american journal of business management, economics and banking volume 35 april 2025 p a g e | 190 www.americanjournal.org information asymmetry can lead to short-term speculation and undermine market stability. by distributing a portion of profits as dividends, firms not only reward shareholders for their investment but also provide an implicit signal about the firm's profitability, operational efficiency, and management’s strategic vision. conversely, decisions to reduce or suspend dividends may raise concerns among market participants, as they can be interpreted as early warnings of financial distress or internal challenges that could affect future performance. the signaling effect of dividend policy thus plays a crucial role in reducing information asymmetry and aligning market expectations with corporate realities, which is particularly vital in capital markets where timely, accurate, and transparent information is paramount for informed decision-making. furthermore, dividend policy impacts the flow of funds within the market, as companies that consistently pay dividends tend to attract long-term investors who value income stability, thereby fostering a base of committed shareholders and enhancing overall market liquidity. the tax implications of dividend distributions also influence investor behavior, as varying tax treatments across jurisdictions can shape preferences for dividend income versus capital gains, highlighting the importance of aligning dividend policy with broader fiscal and regulatory frameworks. in addition, dividend policy serves as a mechanism for financial discipline, as it limits the free cash flow available to management, reducing the risk of inefficient capital allocation, overexpansion, or engagement in value-destructive projects. this discipline contributes to stronger corporate governance practices, as it fosters accountability and transparency in the utilization of corporate resources, ensuring that management remains focused on generating shareholder value rather than pursuing personal interests or short-term gains. from a macroeconomic perspective, aggregate dividend distributions can act as a barometer of corporate sector health, with rising dividends reflecting broader economic growth and declining dividends signaling potential contraction or risk aversion within the market. table 1 role of dividend policy in capital market aspect role of dividend policy impact on capital market investor confidence provides a signal of financial health and stability increases trust, attracts long-term investors, and reduces speculative trading signaling effect conveys information about future earnings and performance reduces information asymmetry, aligns expectations, stabilizes stock prices corporate governance promotes transparency, limits free cash flow, prevents agency problems enhances corporate accountability, aligns management with shareholder interests market liquidity regular dividends incentivize longterm holding behavior increases liquidity, encourages stable trading volumes, supports market resilience capital structure decisions balances retained earnings and distributed profits influences leverage, cost of capital, and risk profile tax considerations dividends versus capital gains affect investor preferences shapes demand for dividend-paying stocks, affects capital allocation macroeconomic indicator aggregate dividend trends reflect corporate sector health rising dividends indicate growth, falling dividends may signal downturns attracting institutional investors predictable dividends appeal to pension funds, mutual funds, and insurance companies supports capital market development, enhances stability, encourages foreign investment american journal of business management, economics and banking volume 35 april 2025 p a g e | 191 www.americanjournal.org investment decisionmaking dividend yields inform portfolio construction helps investors balance income needs and growth expectations stock price volatility stable dividend payers tend to show lower price fluctuations reduces market volatility, fosters predictable market behavior corporate lifecycle mature firms often pay dividends, while growth firms reinvest profits reflects strategic priorities, informs investor expectations economic uncertainty resilience maintaining dividends during crises signals strength supports market confidence, attracts conservative investors long-term market development bridges corporate and investor interests, supports market participation facilitates capital mobilization, sustains market growth capital allocation efficiency distributes profits effectively to maximize shareholder value ensures efficient use of capital, supports broader economic development global competitiveness adherence to international dividend practices aligns with global market standards attracts foreign investors, enhances integration into global capital markets source: done by the author table 1 highlights the critical role of dividend policy in capital markets, emphasizing how it influences various interconnected aspects of financial stability, investor behavior, and corporate governance. a sound dividend policy not only serves as a signal of a firm’s financial health and stability but also contributes to building investor trust, thereby attracting long-term investors and discouraging speculative trading. furthermore, the signaling effect embedded in dividend announcements conveys crucial information about a company’s future earnings and performance, thereby reducing information asymmetry and aligning market expectations, which in turn stabilizes stock prices. dividend policy also plays an essential role in corporate governance by promoting transparency, limiting excessive free cash flow, and mitigating agency problems, thereby enhancing corporate accountability and aligning management’s decisions with shareholder interests. regular dividend payments incentivize long-term holding behavior among investors, which increases market liquidity, encourages stable trading volumes, and supports overall market resilience. moreover, dividend policy interacts with a company’s capital structure decisions, as it influences the balance between retained earnings and distributed profits, which subsequently impacts leverage, cost of capital, and risk profile. tax considerations further shape dividend policy, as differences in tax treatment between dividends and capital gains affect investor preferences and, in turn, influence demand for dividend-paying stocks and capital allocation strategies. from a macroeconomic perspective, aggregate dividend trends serve as an important indicator of corporate sector health, where rising dividends signal economic growth and falling dividends may indicate potential downturns. predictable dividend payments are particularly attractive to institutional investors such as pension funds, mutual funds, and insurance companies, thereby supporting capital market development, enhancing stability, and encouraging foreign investment inflows. american journal of business management, economics and banking volume 35 april 2025 p a g e | 192 www.americanjournal.org table 2 effects of dividend policy in capital market area of impact effect of dividend policy capital market consequences stock valuation signals company stability and future cash flows influences stock prices and market capitalization investor behavior attracts income-seeking investors, especially those preferring steady dividends encourages long-term holdings, reduces speculative trading market liquidity regular payouts foster trust and holding behavior enhances liquidity, stabilizes trading volumes risk perception dividend cuts can signal distress, while stable payouts suggest resilience affects risk assessment, increases/decreases volatility capital allocation determines portion of profits distributed vs. reinvested affects corporate investment capacity and market’s capital formation agency conflicts limits free cash flows, reduces managerial discretion strengthens corporate governance, aligns management and shareholder interests tax efficiency dividend taxation impacts investor preference for dividends vs. capital gains shapes demand patterns, influences portfolio allocation strategies corporate reputation consistent dividend policy signals management discipline builds trust, improves market image, attracts institutional investors market stability predictable dividends reduce uncertainty and market shocks contributes to orderly markets, supports long-term growth foreign investment transparent dividend practices enhance attractiveness for global investors increases cross-border capital flows, supports market integration capital structure management affects retained earnings and reliance on external financing influences cost of capital, financial flexibility portfolio strategy dividend yields provide benchmarks for investor decision-making helps in risk-return balancing, supports diversified investment approaches signaling effect dividend announcements provide insights into future earnings expectations reduces information asymmetry, aligns market sentiment economic cycle sensitivity dividend trends reflect broader economic health rising dividends may indicate growth, while cuts may signal economic slowdown market depth dividend-paying stocks attract diverse investors enhances market depth, improves resilience against shocks source: done by the author table 2 effectively demonstrates how dividend policy exerts a multifaceted influence on capital markets by shaping stock valuation, investor behavior, market liquidity, and risk perceptions, with each aspect being interconnected and contributing to overall market stability. the consistent signaling of company stability and future cash flows through dividend payments influences stock prices and market capitalization, while also attracting income-seeking investors who prefer predictable returns, ultimately encouraging long-term holdings and reducing speculative trading that could otherwise destabilize markets. regular dividend payouts foster trust among investors, strengthening market liquidity by stabilizing trading volumes and creating an environment conducive to orderly price discovery. furthermore, dividend policy directly affects risk perception in the market, as dividend cuts often signal distress and elevate volatility, while stable or increasing payouts suggest resilience and financial strength. corporate capital allocation decisions are also deeply intertwined with dividend policy, as the choice to distribute profits versus reinvest them impacts a firm’s investment capacity and the broader american journal of business management, economics and banking volume 35 april 2025 p a g e | 193 www.americanjournal.org market’s capital formation, influencing overall economic growth. by limiting free cash flow available to management, dividend policy reduces agency conflicts, aligns managerial actions with shareholder interests, and enhances corporate governance practices, which in turn builds investor confidence and supports sustained market participation. tax efficiency considerations further shape dividend policy, as varying tax treatments influence investor preferences and portfolio strategies, thereby affecting demand patterns across different market segments. a consistent and transparent dividend policy enhances corporate reputation, attracts institutional investors, and signals management discipline, contributing to a positive market image that encourages cross-border capital flows and supports global market integration. ultimately, dividend policy helps reduce information asymmetry by providing clear signals about future earnings expectations, contributing to a more informed and rational investment environment, while also reinforcing market depth by attracting a diverse base of investors, thereby enhancing market resilience against external shocks and long-term uncertainties. dividend policy also interacts with capital structure decisions, as the retention of earnings for reinvestment versus distribution to shareholders influences the company’s leverage, risk profile, and cost of capital, thereby affecting its competitive position and ability to finance future projects. the impact of dividend policy extends to market sentiment, as consistent dividend payers are often viewed as more stable and less risky, attracting institutional investors such as pension funds, mutual funds, and insurance companies, who play a pivotal role in capital market development. moreover, dividend policy can influence stock price volatility, as dividend-paying stocks tend to exhibit lower price fluctuations, contributing to a more stable and resilient market environment. in emerging markets, where investor confidence may be more fragile due to weaker regulatory frameworks and higher political or economic risks, the establishment of a sound and predictable dividend policy can serve as a critical factor in attracting foreign direct investment, supporting market liquidity, and promoting sustainable market growth. dividend policy also reflects a company’s lifecycle stage, as mature firms often prioritize dividend payouts to reward shareholders, while growth-oriented firms may reinvest profits to fuel expansion, illustrating the strategic nature of dividend decisions. the interplay between dividend policy and investment attractiveness underscores its importance in shaping capital allocation decisions, as investors often evaluate dividend yields alongside growth potential, risk exposure, and market conditions when constructing their portfolios. table 3 dividend payout statistics for companies listed on the new york stock exchange (nyse) metric 2023 2024 total dividends paid (s&p 500) $588 billion $630 billion annual growth rate (s&p 500) 4.1% 7.1% dividend yield (s&p 500) 1.49% 1.27% dividend payout ratio (s&p 500) 37.28% 35.78% top dividend-paying companies microsoft, apple, exxonmobil microsoft, apple, exxonmobil number of dividend increases (q4) 707 635 notable first-time payers n/a meta, alphabet, alibaba source: https://www.spglobal.com/en american journal of business management, economics and banking volume 35 april 2025 p a g e | 194 www.americanjournal.org table 3 highlights the dividend payout statistics for companies listed on the new york stock exchange (nyse), illustrating the evolving trends in dividend payments among major corporations, particularly those included in the s&p 500 index. in 2023, total dividends paid by s&p 500 companies reached an impressive $588 billion, reflecting a steady 4.1% annual growth rate, which increased to $630 billion in 2024 with a higher 7.1% growth rate, signaling a positive trajectory in corporate earnings distribution. despite this increase in absolute dividend payments, the overall dividend yield for s&p 500 companies declined from 1.49% in 2023 to 1.27% in 2024, suggesting that stock price appreciation outpaced dividend growth, a trend often seen in bullish market conditions. the dividend payout ratio also slightly decreased from 37.28% in 2023 to 35.78% in 2024, indicating that a larger portion of earnings was retained for reinvestment rather than distributed to shareholders. notably, the top dividend-paying companies across both years remained consistent, with microsoft, apple, and exxonmobil maintaining leadership positions, demonstrating their financial strength and commitment to returning capital to shareholders. interestingly, the number of dividend increases in q4 declined from 707 in 2023 to 635 in 2024, highlighting a potential moderation in the pace of dividend growth, which could reflect cautious optimism among corporations amid changing macroeconomic conditions. a significant development in 2024 was the emergence of notable first-time dividend payers such as meta, alphabet, and alibaba, signaling a shift among major technology firms toward more shareholder-friendly capital allocation strategies. this shift, particularly from traditionally growthfocused companies, underscores a maturing phase in their corporate lifecycle, balancing growth reinvestment with shareholder returns. the interplay of these dividend payout trends reflects broader market dynamics, where investor demand for income, corporate profitability, and market valuation collectively shape dividend strategies. ultimately, the data presented in table 3 provides a comprehensive snapshot of how dividend policies in nyse-listed companies contribute to market stability, investor confidence, and the overall attractiveness of the u.s. capital market for both domestic and international investors. conclusions the following conclusions are formed on the basis of above-mentioned analyses: first, the stability and growth trajectory of dividend policies not only reflect the corporate approach to profit allocation but also play a pivotal role in reinforcing investor confidence, encouraging long-term financial commitments, and mitigating stock price volatility, thereby contributing significantly to the overall resilience and efficiency of the capital market. second, the fluctuation in dividend payments, whether increases or reductions, exerts a direct influence on stock prices and corporate valuation metrics, indicating that the continuity and predictability of dividend policies shape not only investor portfolio construction but also the broader flow and allocation of funds within the capital market. third, dividend policy, by serving as a stable source of income for investors, simultaneously demonstrates management’s commitment to financial discipline and adherence to corporate governance principles, thereby enhancing market participants’ trust and creating a more attractive environment for global investors seeking predictable returns. american journal of business management, 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